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SHF (SHFS) - 2024 Q4 - Annual Results
SHFSSHF (SHFS)2025-04-01 12:00

Financial Performance - Adjusted EBITDA for Q4 2024 was positive at 63,581,comparedto63,581, compared to 1.3 million in Q4 2023[4] - Total revenue for Q4 2024 was approximately 3.7million,adecreasefromapproximately3.7 million, a decrease from approximately 4.5 million in Q4 2023, while full-year revenue was approximately 15.2million,downfrom15.2 million, down from 17.6 million in 2023[4][10] - The company recognized a net loss of approximately 48.3millionforthefullyear2024,comparedtoanetlossofapproximately48.3 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,adecreaseof13.415,242,560, a decrease of 13.4% from 17,562,903 in 2023[17] - Net loss for 2024 was 48,319,475,comparedtoanetlossof48,319,475, 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),comparedto(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,adecreaseof19.92,888,868, 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 22.3million,comparedto22.3 million, compared to 38.3 million in 2023[11] - Total operating expenses decreased to 22,334,046in2024from22,334,046 in 2024 from 38,293,952 in 2023, reflecting a reduction of 41.6%[17] - Compensation and Employee Benefits expense decreased 32% to approximately 1.4millioninQ42024comparedto1.4 million in Q4 2024 compared to 2.1 million in Q4 2023[4] - The company incurred interest expense of 533,390in2024,adecreaseof51.2533,390 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 2.3million,downfrom2.3 million, down from 4.9 million at the end of 2023[12] - Adjusted Working Capital was approximately 2millionasofDecember31,2024[4]Thecompanyreportedanetworkingcapitaldeficitof2 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 2,009,784afteraccountingfornoncashliabilities[27]Cashandcashequivalentsattheendof2024were2,009,784 after accounting for non-cash liabilities[27] - Cash and cash equivalents at the end of 2024 were 2,324,647, down from 4,888,769attheendof2023,reflectingadecreaseof52.54,888,769 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 43,859,686in2024,comparedtoataxbenefitof43,859,686 in 2024, compared to a tax benefit of (1,829,701) in 2023[25] - Impairment of goodwill in 2024 was 6,058,000,downfrom6,058,000, down from 13,208,276 in 2023, showing a reduction of 54.1%[17] Business Operations and Market Position - The company processed over 25billionincannabisrelatedfunds,markingasignificantmilestoneonits10thanniversary[6]SafeHarborhasfacilitatedover25 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]