DENVER, June 06, 2025 (GLOBE NEWSWIRE) -- SHF Holdings, Inc., d/b/a Safe Harbor Financial (Safe Harbor or the “Company”) (Nasdaq: SHFS), a fintech leader in facilitating financial services and credit facilities to the cannabis industry, announced that Terry Mendez, Safe Harbor’s Chief Executive Officer, Jeffrey Kay, Senior Vice President of Marketing, Dominic Marella, Vice President of Business Development, and Michael Regan, Head of Investor Relations & Data Science will participate in the Benzinga Cannabi ...

Core Insights - Safe Harbor Financial has formed a strategic partnership with Bennett Thrasher to enhance financial compliance and advisory services for cannabis businesses in regulated markets [1][2] - The collaboration aims to address financial challenges faced by operators in the cannabis industry, providing essential tools and guidance for growth [2][3] Company Overview - Safe Harbor Financial is a fintech leader that facilitates financial services and credit facilities specifically for the cannabis industry, having facilitated over $25 billion in deposit transactions across more than 41 states [8] - Bennett Thrasher is a prominent accounting and advisory firm with over 45 years of experience, offering a range of services including tax, audit, and advisory [4] Services Offered - The partnership provides a comprehensive suite of financial services tailored for cannabis businesses, including annual audits, tax preparation, ongoing financial advisory, corporate valuations, M&A support, and CFO services [6][7] - These services are designed to improve audit readiness, enhance credibility with stakeholders, and provide strategic financial guidance [7] Industry Context - Operators in the cannabis industry face unique financial challenges, such as navigating the complexities of 280E tax law and limited access to traditional advisory services [3] - The partnership aims to fill a critical gap in financial infrastructure, enabling cannabis businesses to operate with greater efficiency and confidence [2][3]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________to _________ Commission File Number 001-40524 SHF Holdings, Inc. (Exact name of registrant as specified in Its charter) | Delaware | 86-2409612 | | --- | --- | ...

GOLDEN, Colo. and SOLANA BEACH, Calif., April 17, 2025 (GLOBE NEWSWIRE) -- SHF Holdings, Inc., d/b/a Safe Harbor Financial (Safe Harbor) (NASDAQ:SHFS), a fintech leader in facilitating financial services and credit facilities to the regulated cannabis industry, announced a strategic partnership with FundCanna, the leading provider of flexible capital solutions for cannabis operators. Through a mutual referral agreement, the two companies will collaborate to bring accessible, transparent funding options and ...

Revenue and Income - For the year ended December 31, 2024, total revenue decreased by 13.21% to $15,242,560 compared to $17,562,903 in 2023[190] - Account fee income declined by 25.16% to $6,447,201 from $8,614,945, primarily due to a reduction in the number of accounts and average monthly ending deposit balance[190] - Loan interest income increased significantly by 122.90% to $6,625,576 compared to $2,972,434 in 2023[190] - Investment income from PCCU decreased from $5,803,114 in 2023 to $1,903,422 in 2024, resulting in a reduction of investment hosting fees from $1,445,517 to $457,105[196] - The revenue from the Commercial Alliance Agreement for the year ended December 31, 2024, was $12,601,271, compared to $10,761,245 for the year ended December 31, 2023, reflecting an increase of approximately 17.1%[267] Account and Deposit Metrics - Average monthly ending deposit balance decreased by 42.49% to $117,847,512 from $204,923,090[182] - The average active accounts dropped by 18.78% to 757 from 932[182] - The average account balance decreased by 29.16% to $155,728 from $219,835[182] - CRB related deposits as of December 31, 2024, were $116,064,487, a decrease from $129,350,998 as of December 31, 2023[267] Expenses and Financial Performance - Adjusted EBITDA for 2024 was $2,888,868, down from $3,607,681 in 2023, attributed to decreased account fee income and higher professional expenses[177] - Total operating expenses were reduced by $15,959,906, or 41.68%, from $38,293,952 in 2023 to $22,334,046 in 2024[200] - The total operating expenses for the Commercial Alliance Agreement in 2024 were $1,052,693, down from $2,056,303 in 2023, indicating a decrease of approximately 48.9%[268] Cash Flow and Working Capital - Cash and cash equivalents decreased from $4,888,769 in 2023 to $2,324,647 in 2024[210] - The Company generated $430,477 in cash from operations in 2024, an improvement from cash used of $832,144 in 2023[212] - The Company reported a net working capital deficit of $983,833 at the end of 2024, compared to a deficit of $135,355 at the end of 2023[219] Debt and Obligations - Interest expense decreased by $561,346, from $1,094,736 in 2023 to $533,390 in 2024, primarily due to restructuring of obligations[206] - The Company has renegotiated its senior secured loan with PCCU, deferring principal payments for February and March 2025[222] - The Company modified the outstanding principal of $10,748,408 with an interest rate of 4.25% per annum, unlocking $6,437,050 in cash flow, significantly improving liquidity[223] - As of December 31, 2024, the Company reclassified short-term obligations of the PCCU Note totaling $2,883,167 as non-current liabilities[224] Impairments and Financial Reporting - The Company recorded a full goodwill impairment charge of $6.06 million due to the fair value of the asset group being lower than its carrying amount[243] - Impairment charges of $0.05 million for market-related intangible assets, $0.05 million for customer relationships, and $2.99 million for developed technologies were also recorded[244] - The Company identified material weaknesses in internal controls over financial reporting as of December 31, 2024[251] Strategic Initiatives and Future Outlook - The company anticipates a reversal of the trend in account numbers as it focuses on its lending program[182] - The Company has implemented stock-based compensation to attract talent, alongside cost reductions through lower headcount and operational spending[225] - Management has substantial doubt about the Company's ability to continue as a going concern for at least twelve months from the issuance of the financial statements[226] - The Amended Commercial Alliance Agreement extends the term through December 31, 2028, with automatic two-year renewal periods[263] - Under the Amended CAA, the Company will pay a single asset hosting fee calculated as 0.01 multiplied by the average daily balance of account relationships[266] - The Company is classified as an emerging growth company, allowing it to delay adopting new accounting standards until they apply to private companies[250] Compliance and Regulatory Matters - The company successfully navigated over 16 state and federal banking exams, ensuring compliance in a regulated environment[167] - The Company’s obligations under the PCCU CAA include paying 25% of investment earnings as a hosting fee to PCCU[262] - The deferred consideration from the Abaca acquisition is accounted for as a derivative liability, with fair value assessments influenced by stock price and market conditions[249] - The Company utilizes a Monte-Carlo Simulation for the valuation of forward purchase derivatives, maintaining the established valuation for 2023 and 2024[241]

— Adjusted EBITDA(1) is positive for each of the last 3 years; Adjusted Working Capital(2) is approximately positive $2 million — Loan Loss Reserve of approximately $1.4 million reserved as a result of a modified Commercial Alliance Agreement (CAA) with Partner Colorado Credit Union (PCCU) — Modifications of PCCU Commercial Alliance Agreement and Note enable new CEO Terry Mendez to implement growth strategy offering broader solutions for clients GOLDEN, Colo., April 01, 2025 (GLOBE NEWSWIRE) -- SHF Holdings ...

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]