Core Insights - Safe Harbor Financial has successfully negotiated a debt modification with Partner Colorado Credit Union, which includes a two-year interest-only period and is expected to unlock over $6 million in cash [1][2] - The debt modification is seen as a pivotal moment for Safe Harbor, providing financial flexibility to pursue new opportunities and enhance service offerings [2] Company Overview - Safe Harbor is a fintech leader providing financial services to the regulated cannabis industry, including compliance and monitoring services for financial institutions [3] - The company has facilitated over $25 billion in deposit transactions across more than 41 states and U.S. territories with regulated cannabis markets [3]

Core Insights - Safe Harbor Financial has closed a $1,500,000 secured credit facility for a Missouri-based cannabis operator, marking the second tranche of a $5,000,000 loan funding package aimed at refinancing senior debt across four retail dispensaries in Missouri [1][2] - The company emphasizes its commitment to providing competitive market interest rates and favorable loan terms, enabling cannabis businesses to manage debt effectively and focus on growth [2][3] - Safe Harbor Financial has facilitated over $25 billion in deposit transactions for cannabis-related businesses across more than 41 states and territories, showcasing its leadership in the cannabis financial services sector [4] Company Overview - Safe Harbor Financial is a fintech leader that provides financial services and credit facilities specifically tailored for the regulated cannabis industry [1][4] - The company offers compliance, monitoring, and validation services to financial institutions, ensuring accountability and transparency while meeting regulatory obligations [4] - Safe Harbor aims to expand access to capital for cannabis businesses, addressing the historical banking challenges faced by the industry [3][4]

Core Insights - Safe Harbor Financial has entered into a Letter Agreement with Partner Colorado Credit Union to temporarily pause principal payments due in February and March 2025, while discussing potential modifications to their Senior Secured Promissory Note [1][2] - The temporary pause is expected to improve Safe Harbor's liquidity by approximately $510,000 [2] - Safe Harbor has facilitated over $25 billion in deposit transactions for cannabis-related businesses across more than 41 states and U.S. territories over the past decade [2] Company Overview - Safe Harbor Financial is a fintech leader providing financial services and credit facilities to the regulated cannabis industry [1] - The company offers compliance, monitoring, and validation services to financial institutions, ensuring accountability and transparency in cannabis-related banking [2] - Safe Harbor aims to foster long-term partnerships and drive growth in local economies while adhering to Bank Secrecy Act obligations [2]

Core Viewpoint - Safe Harbor Financial announces the retirement of CEO Sundie Seefried in 30 days, with Terry Mendez appointed as co-CEO and set to become CEO upon Seefried's retirement, reflecting a strategic succession plan aimed at long-term growth and maximizing shareholder value [1][2][4]. Company Transition - Sundie Seefried will serve as co-CEO during the transition period and will remain on the Board of Directors post-retirement [2]. - Terry Mendez has signed a three-year executive employment agreement and will work closely with the leadership team to drive innovation and growth [3][4]. Leadership Experience - Terry Mendez brings extensive experience in strategic planning and operational transformation, having previously led turnaround efforts in the cannabis industry and served in senior roles at major firms [4]. Company Background - Safe Harbor is a pioneer in providing banking and financial services to the cannabis industry, having facilitated over $25 billion in deposit transactions across 41 states and territories over the past decade [5].

Core Insights - Safe Harbor Financial has achieved a significant milestone by processing over $25 billion in cannabis-related funds, marking its 10th anniversary and underscoring its leadership in the regulated cannabis financial services sector [1][4]. - The company has established itself as a pioneer in providing secure and compliant financial solutions tailored for the cannabis industry, serving clients across nearly 40 states and U.S. territories [2][4]. - Safe Harbor's commitment to compliance, transparency, and innovation has positioned it as a trusted partner for cannabis businesses, enabling them to operate confidently within a heavily regulated environment [3][4]. Company Overview - Founded in 2015, Safe Harbor Financial specializes in offering compliance, monitoring, and validation services to financial institutions, focusing on cannabis, hemp, CBD, and ancillary operators [4]. - The company implements high standards of accountability and risk mitigation measures while adhering to the Bank Secrecy Act and FinCEN guidance [4]. - Safe Harbor's robust suite of financial products has facilitated over $25 billion in deposit transactions, reflecting its strategic focus on scaling operations and expanding services [3][4].

Core Insights - Safe Harbor Financial has announced a four-year extension and modification of its commercial alliance agreement with Partner Colorado Credit Union, which eliminates a $1.2 million indemnity liability from its balance sheet as of September 30, 2024, effective January 1, 2025 [1][2] - The updated agreement simplifies business processes, aligns expenses with income, and reduces exposure to contingent liability on the loan portfolio, enhancing financial performance and shareholder value [2] Company Overview - Safe Harbor is a leading service provider offering compliance, monitoring, and validation services to financial institutions in the cannabis industry, facilitating traditional banking services for cannabis, hemp, CBD, and ancillary operators [3] - Over the past eight years, Safe Harbor has facilitated more than $23 billion in deposit transactions across 41 states and U.S. territories with regulated cannabis markets [3]

Financial Data and Key Metrics Changes - Net income increased by 147% year-over-year to $354,000 compared to a net loss of $748,000 for the same period last year [7] - Loan interest income rose by 48% year-over-year for the third quarter and by 143.5% for the nine months [7] - Total revenue for the third quarter decreased by 19.6% to $3.5 million from $4.3 million in the prior year [20] - Total revenue for the nine months decreased by 11.6% to $11.6 million from $13.1 million in the prior year [20] - Operating expenses decreased by 13% year-over-year for the third quarter and by 66% for the nine months [8][22] Business Line Data and Key Metrics Changes - Revenue from deposit activity and onboarding decreased by 26% to $1.6 million for the third quarter [20] - Investment income for the third quarter decreased by approximately 60% to $475,000 [21] - Loan interest income for the third quarter grew by 48% to $1.3 million [21] Market Data and Key Metrics Changes - The cannabis market is expected to reach $33.6 billion in 2024 with a CAGR growth rate of 12.1% from 2024 through 2030 [12] - 24 states have legalized adult-use cannabis and 38 states have legalized medicinal use, indicating a growing market [11] Company Strategy and Development Direction - The company is focusing on expanding its customer base and delivering best-in-class service while developing innovative offerings [19] - Safe Harbor is adapting its platform to meet the demands of cannabis-related businesses and is looking to acquire account portfolios from banks exiting the business [19] - The company is making competitive changes to attract incoming cannabis entities, including adjusting fees and offering competitive pricing [13] Management's Comments on Operating Environment and Future Outlook - Management noted headwinds in the cannabis sector, including pricing pressures and increased competition, but still managed to increase net income and cash flow [9] - The company is optimistic about the potential for cannabis industry growth following the recent elections and upcoming regulatory changes [16][18] - Management believes that reclassification of cannabis could strengthen the balance sheets of customers and improve the company's position in the market [18] Other Important Information - The company reported cash and cash equivalents of $5.9 million as of September 30, 2024, compared to $4.9 million at the end of 2023 [25] - The company expects full-year revenue for 2024 to be in the range of $15 million to $15.5 million [25] Q&A Session Summary - The call concluded without a detailed Q&A session, as the operator thanked participants and indicated the next update would be in March [26][27]

--Net Income increased to $0.4 million in the third quarter of 2024 --Loan Interest Income increased 48% and 143.5% year-over-year for three and nine months ended September 30, 2024, respectively --Operating Expenses decreased 13.2% versus Q3 2023 and by 66.4% for the nine-month period in 2024 GOLDEN, Colo., Nov. 12, 2024 (GLOBE NEWSWIRE) -- SHF Holdings, Inc., d/b/a/ Safe Harbor Financial (“Safe Harbor” or the “Company”) (NASDAQ: SHFS), a leader in facilitating financial services and credit facilities to t ...

Financial Performance - The Company reported a net income of $941,527 for the three months ended June 30, 2024, compared to a net loss of $17,604,567 for the same period in 2023[133]. - EBITDA for the six months ended June 30, 2024, was $3,753,446, a significant improvement from a loss of $18,677,843 in the prior year[133]. - Adjusted EBITDA for the six months ended June 30, 2024, was $2,061,002, compared to $1,260,302 for the same period in 2023[133]. - Total revenue for the six months ended June 30, 2024, was $8,088,334, a decrease of 7.59% compared to $8,752,887 in 2023[141]. - Total revenue for the three months ended June 30, 2024, was $274,884, compared to $459,001 for the same period in 2023, representing a decrease of approximately 40%[173]. - Total revenue for the six months ended June 30, 2024, was $575,145, down from $849,660 in the same period in 2023, indicating a decline of about 32%[173]. - The revenue from the Commercial Alliance Agreement for the three months ended June 30, 2024, was $3,478,251, compared to $3,411,218 for the same period in 2023[172]. - The total revenue from commercial alliance agreements for the six months ended June 30, 2024, was $575,145, compared to $459,001 for the same period in 2023, showing an increase of about 25%[173]. Operational Metrics - The Company launched a commercial lending program in 2020, which has become the largest revenue component, focusing on senior secured lending with stringent collateral requirements[125]. - The Company expects that fees based on deposits and interest on daily balances will represent a significant portion of revenue by 2024[124]. - The average account balance at period end is calculated by dividing total account balances by the number of accounts, which is crucial for assessing lending capacity[134]. - The Company monitors key metrics such as total account balances, number of accounts, and average account balances to assess business operations[134]. - For the six months ended June 30, 2024, average monthly ending deposit balance decreased to $125,852,436, down 44.51% from $226,798,931 in 2023[136]. - Average active accounts declined to 752, a decrease of 25.51% from 1,010 in the previous year[136]. - The company serviced 24 loans in the six months ended June 30, 2024, compared to 12 loans in the same period of 2023[145]. Income Sources - The Company earns income from onboarding fees and deposit activity, which historically has been the majority of revenue[123]. - Investment income is primarily derived from CRB client deposits, with 25% of this income paid to PCCU as a hosting cost[124]. - Loan interest income increased significantly to $3,472,848, up 224.22% from $1,071,124 in the same period last year[141]. - Investment income for the six months ended June 30, 2024, was $1,274,436, down 55.09% from $2,837,694 in the previous year[141]. Expenses - Operating expenses for the six months ended June 30, 2024, totaled $7,463,230, a decrease of 73.62% from $28,287,323 in 2023[146]. - General and administrative expenses decreased by 41.44% to $1,985,984 in the six months ended June 30, 2024, from $3,391,463 in 2023[146]. - Total operating expenses for the three months ended June 30, 2024, decreased to $3,737,372, a reduction of $1,859,164 or 83.38% compared to $22,485,275 for the same period in 2023[152]. - General and administrative expenses decreased by approximately $850,825 or 45.93% to $1,001,764 for the three months ended June 30, 2024, compared to $1,852,589 in 2023[152]. Cash Flow - The company generated $2,704,637 in cash from operations for the six months ended June 30, 2024, compared to cash used of $964,786 for the same period in 2023, reflecting improved operational efficiency[155]. - For the six months ended June 30, 2024, the company used $1,487,507 in cash for financing activities, primarily due to repayments on the senior secured promissory note[155]. - Cash and cash equivalents increased to $6,111,982 as of June 30, 2024, up from $4,888,769 as of December 31, 2023[154]. Concerns and Future Outlook - The company acknowledges substantial doubt about its ability to continue as a going concern for at least twelve months from the date of the financial statements due to historical negative operating income[158]. - The company expects a shift in trends as it enhances its lending platform, which typically requires borrowers to place deposits[138]. - The company experienced a significant decrease in impairment of goodwill and finite lived intangible assets, with both categories showing a 100% reduction compared to the previous year[152]. - CRB related deposits decreased to $90,562,105 as of June 30, 2024, down from $129,350,998 as of December 31, 2023[171]. Miscellaneous - The company is classified as a smaller reporting company and is not required to provide detailed market risk disclosures[174].

GOLDEN, Colo., July 25, 2024 (GLOBE NEWSWIRE) -- SHF Holdings, Inc., d/b/a/ Safe Harbor Financial ("Safe Harbor" or the "Company") (NASDAQ:SHFS), a leader in providing banking, payments, and financial services to the regulated cannabis industry, announced a new partnership with BIPOCann, a Denver-based consulting firm dedicated to aiding social equity and minority entrepreneurs in the cannabis sector. Under this partnership, BIPOCann will offer its full suite of membership benefits, valued at $600, to all o ...