Core Insights - Safe Harbor Financial reported positive Adjusted EBITDA for the last three years, with Adjusted Working Capital at approximately $2 million [1][7] - The company modified its Commercial Alliance Agreement with Partner Colorado Credit Union, allowing for a growth strategy under new CEO Terry Mendez [1][5] - Loan Interest Income saw significant increases of 82% in Q4 2024 and 123% for the full year compared to the previous year [6][8] Financial Performance - Q4 2024 revenue was approximately $3.7 million, a decrease from $4.5 million in Q4 2023, but an increase from $3.5 million in Q3 2024 [7] - Full-year 2024 revenue totaled approximately $15.2 million, down from $17.6 million in 2023, primarily due to reduced deposit activity [11] - Operating expenses for 2024 decreased over 42% to approximately $22.3 million from $38.3 million in 2023 [12] Operational Highlights - The company processed over $25 billion in cannabis-related funds, marking a significant milestone on its 10th anniversary [8][13] - Safe Harbor originated a $1.5 million secured credit facility for a Missouri cannabis operator, enhancing its role as a financial partner in the cannabis sector [8][13] - The Amended Commercial Alliance Agreement with PCCU extends the term through December 31, 2028, providing financial flexibility [5][9] Adjusted Metrics - Adjusted EBITDA for 2024 was approximately $2.9 million, compared to $3.6 million in 2023 [7][29] - The company reported a net loss of approximately $48.3 million for 2024, which includes significant non-cash expenses related to goodwill and intangible asset impairments [15][20] - Adjusted Working Capital, after accounting for non-cash liabilities, was calculated at approximately $2 million [31]

Financial Performance - Adjusted EBITDA for Q4 2024 was positive at $63,581, compared to $1.3 million in Q4 2023[4] - Total revenue for Q4 2024 was approximately $3.7 million, a decrease from approximately $4.5 million in Q4 2023, while full-year revenue was approximately $15.2 million, down from $17.6 million in 2023[4][10] - The company recognized a net loss of approximately $48.3 million for the full year 2024, compared to a net loss of approximately $17.3 million in 2023[11] - Revenue for the year ended December 31, 2024, was $15,242,560, a decrease of 13.4% from $17,562,903 in 2023[17] - Net loss for 2024 was $48,319,475, compared to a net loss of $17,279,847 in 2023, representing an increase in loss of 179.5%[17] - Basic and diluted net loss per share for 2024 was $(17.43), compared to $(8.12) in 2023, indicating a significant increase in loss per share[17] - Adjusted EBITDA for 2024 was $2,888,868, a decrease of 19.9% from $3,607,681 in 2023[25] Operating Expenses - Operating expenses for the full year 2024 decreased over 42% to approximately $22.3 million, compared to $38.3 million in 2023[11] - Total operating expenses decreased to $22,334,046 in 2024 from $38,293,952 in 2023, reflecting a reduction of 41.6%[17] - Compensation and Employee Benefits expense decreased 32% to approximately $1.4 million in Q4 2024 compared to $2.1 million in Q4 2023[4] - The company incurred interest expense of $533,390 in 2024, a decrease of 51.2% from $1,094,736 in 2023[17] Cash and Working Capital - Cash and cash equivalents as of December 31, 2024, were $2.3 million, down from $4.9 million at the end of 2023[12] - Adjusted Working Capital was approximately $2 million as of December 31, 2024[4] - The company reported a net working capital deficit of $983,833 at the end of 2024, but adjusted working capital was $2,009,784 after accounting for non-cash liabilities[27] - Cash and cash equivalents at the end of 2024 were $2,324,647, down from $4,888,769 at the end of 2023, reflecting a decrease of 52.5%[21] Debt and Tax Benefits - A modification of the debt obligation with Partner Colorado Credit Union unlocked over $6 million in cash flow over the next two years[7] - The company recognized a deferred tax benefit of $43,859,686 in 2024, compared to a tax benefit of $(1,829,701) in 2023[25] - Impairment of goodwill in 2024 was $6,058,000, down from $13,208,276 in 2023, showing a reduction of 54.1%[17] Business Operations and Market Position - The company processed over $25 billion in cannabis-related funds, marking a significant milestone on its 10th anniversary[6] - Safe Harbor has facilitated over $25 billion in deposit transactions for cannabis-related businesses across more than 41 states and US territories[28] - The company provides compliance, monitoring, and validation services to financial institutions serving the cannabis industry[28] - Safe Harbor aims to drive growth in local economies and foster long-term partnerships through its services[28] - The company emphasizes high standards of accountability, transparency, and risk mitigation measures in line with Bank Secrecy Act obligations[28] - Future growth prospects and market size for Safe Harbor are subject to trends in the cannabis industry and potential changes in U.S. and state laws[29] - Safe Harbor's projected financial and operational performance will be compared to its competitors and historical performance[29] - The company may introduce new product and service offerings in the future[29] - Safe Harbor's securities may be affected by volatility in capital markets[29] - The company does not undertake any duty to update forward-looking statements made in its communications[29] - Contact information for investor relations is provided for further inquiries[30]

Company Overview - SHF Holdings, Inc., operating as Safe Harbor Financial, is a fintech leader providing financial services and credit facilities to the regulated cannabis industry [1][4] - The company has facilitated over $25 billion in deposit transactions across more than 41 states and U.S. territories with regulated cannabis markets over the past decade [4] Leadership Announcement - Michael (Mike) Regan has been appointed as the Head of Investor Relations and Data Science at Safe Harbor [1][2] - Regan has a strong background in investment analysis and product innovation, with experience at Credit Suisse, Deutsche Bank, and in the legal cannabis sector since 2019 [2][3] Strategic Focus - Regan will focus on enhancing investor understanding of the company's growth initiatives and developing innovative products using Safe Harbor's extensive databases [2][3] - The company aims to advance its growth strategies through programs such as Safe Harbor Protects, Safe Harbor Lends, Safe Harbor Connects, and Safe Harbor Enables [3]

Core Viewpoint - Safe Harbor Financial, under the leadership of newly appointed CEO Terry Mendez, aims to leverage its position as a fintech leader in the regulated cannabis industry to develop innovative financial solutions that address industry-specific challenges [1][2]. Group 1: Company Overview - Safe Harbor has processed over $25 billion in cannabis-related funds through its network of partner banks, marking a significant achievement in its 10-year history [3]. - The company provides compliance, monitoring, and validation services to financial institutions, facilitating traditional banking services for cannabis-related businesses across more than 41 states and U.S. territories [10]. Group 2: Financial Strategy - Safe Harbor successfully negotiated a debt modification with Partner Colorado Credit Union (PCCU), unlocking over $6 million in cash and extending the due date to October 2030 while maintaining a 4.25% interest rate [4]. - This debt modification reflects PCCU's confidence in Safe Harbor's strategy and enhances the company's financial flexibility to pursue growth opportunities [4]. Group 3: Future Plans - The long-term vision for Safe Harbor is to transform from a specialized banking services provider into a multi-faceted fintech platform, leveraging industry relationships and regulatory expertise to create greater value for clients and shareholders [9]. - A Special Shareholder Meeting is scheduled for March 13, 2025, to discuss the company's go-forward strategy and a proposal for a reverse stock split to comply with Nasdaq listing requirements [5][6].

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]