Safe Harbor Financial Reports Fourth Quarter and Year-End 2024 Results
Safe Harbor Financial (NASDAQ: SHFS) reported its Q4 and full-year 2024 results, showing mixed performance. Q4 2024 revenue was $3.7M, down from $4.5M in Q4 2023 but up 5% from Q3 2024. Loan Interest Income showed strong growth, increasing 82% year-over-year in Q4 and 123% for full-year 2024.
Full-year 2024 revenue was $15.2M, compared to $17.6M in 2023. The company maintained positive Adjusted EBITDA for three consecutive years, with $2.9M for 2024. Operating expenses decreased 42% to $22.3M in 2024. The company recorded a net loss of $48.3M, including $43.9M in non-cash valuation allowance and $9.1M in impairment charges.
Notable developments include the modification of the Partner Colorado Credit Union debt obligation, unlocking $6.4M in cash flow over two years, and reaching a milestone of processing over $25B in cannabis-related funds.
Safe Harbor Financial (NASDAQ: SHFS) ha riportato i risultati del quarto trimestre e dell'intero anno 2024, mostrando una performance mista. Il fatturato del Q4 2024 è stato di 3,7 milioni di dollari, in calo rispetto ai 4,5 milioni di dollari del Q4 2023, ma in aumento del 5% rispetto al Q3 2024. Il reddito da interessi sui prestiti ha mostrato una forte crescita, aumentando dell'82% su base annua nel Q4 e del 123% per l'intero anno 2024.
Il fatturato dell'intero anno 2024 è stato di 15,2 milioni di dollari, rispetto ai 17,6 milioni di dollari del 2023. L'azienda ha mantenuto un EBITDA rettificato positivo per tre anni consecutivi, con 2,9 milioni di dollari per il 2024. Le spese operative sono diminuite del 42%, raggiungendo i 22,3 milioni di dollari nel 2024. L'azienda ha registrato una perdita netta di 48,3 milioni di dollari, inclusi 43,9 milioni di dollari in accantonamenti per svalutazione non monetaria e 9,1 milioni di dollari in oneri di svalutazione.
Sviluppi notevoli includono la modifica dell'obbligazione di debito della Partner Colorado Credit Union, che ha sbloccato 6,4 milioni di dollari di flusso di cassa nell'arco di due anni, e il raggiungimento di un traguardo di elaborazione di oltre 25 miliardi di dollari in fondi legati alla cannabis.
Safe Harbor Financial (NASDAQ: SHFS) reportó sus resultados del cuarto trimestre y del año completo 2024, mostrando un rendimiento mixto. Los ingresos del Q4 2024 fueron de 3,7 millones de dólares, en comparación con 4,5 millones de dólares en el Q4 2023, pero un aumento del 5% respecto al Q3 2024. Los ingresos por intereses de préstamos mostraron un fuerte crecimiento, aumentando un 82% interanual en el Q4 y un 123% para el año completo 2024.
Los ingresos del año completo 2024 fueron de 15,2 millones de dólares, en comparación con 17,6 millones de dólares en 2023. La compañía mantuvo un EBITDA ajustado positivo durante tres años consecutivos, con 2,9 millones de dólares para 2024. Los gastos operativos disminuyeron un 42%, alcanzando los 22,3 millones de dólares en 2024. La compañía registró una pérdida neta de 48,3 millones de dólares, incluidos 43,9 millones de dólares en provisiones de valoración no monetarias y 9,1 millones de dólares en cargos por deterioro.
Desarrollos notables incluyen la modificación de la obligación de deuda de Partner Colorado Credit Union, desbloqueando 6,4 millones de dólares en flujo de caja durante dos años, y alcanzando un hito de procesamiento de más de 25 mil millones de dólares en fondos relacionados con cannabis.
세이프 하버 파이낸셜 (NASDAQ: SHFS)이 2024년 4분기 및 연간 실적을 발표했습니다. 성과는 엇갈렸습니다. 2024년 4분기 매출은 370만 달러로, 2023년 4분기의 450만 달러에서 감소했지만 2024년 3분기 대비 5% 증가했습니다. 대출 이자 수익은 강력한 성장을 보여주며 4분기에는 전년 대비 82%, 2024년 전체에서는 123% 증가했습니다.
2024년 전체 매출은 1520만 달러로, 2023년의 1760만 달러와 비교됩니다. 회사는 3년 연속으로 긍정적인 조정 EBITDA를 유지했으며, 2024년에는 290만 달러를 기록했습니다. 운영 비용은 42% 감소하여 2024년에는 2230만 달러에 달했습니다. 회사는 4830만 달러의 순손실을 기록했으며, 이에는 4390만 달러의 비현금 평가 충당금과 910만 달러의 손상 비용이 포함됩니다.
주목할 만한 발전으로는 파트너 콜로라도 신용 조합의 부채 의무 수정이 있으며, 이는 2년 동안 640만 달러의 현금 흐름을 해제하고, 대마초 관련 자금 250억 달러 이상을 처리하는 이정표에 도달했습니다.
Safe Harbor Financial (NASDAQ: SHFS) a publié ses résultats du quatrième trimestre et de l'année complète 2024, montrant une performance mitigée. Le chiffre d'affaires du Q4 2024 s'est élevé à 3,7 millions de dollars, en baisse par rapport à 4,5 millions de dollars au Q4 2023, mais en hausse de 5% par rapport au Q3 2024. Les revenus d'intérêts sur les prêts ont montré une forte croissance, augmentant de 82% d'une année sur l'autre au Q4 et de 123% pour l'année complète 2024.
Le chiffre d'affaires pour l'année complète 2024 était de 15,2 millions de dollars, contre 17,6 millions de dollars en 2023. L'entreprise a maintenu un EBITDA ajusté positif pendant trois années consécutives, avec 2,9 millions de dollars pour 2024. Les dépenses d'exploitation ont diminué de 42%, atteignant 22,3 millions de dollars en 2024. L'entreprise a enregistré une perte nette de 48,3 millions de dollars, y compris 43,9 millions de dollars en provisions de valorisation non monétaires et 9,1 millions de dollars en charges de dépréciation.
Les développements notables incluent la modification de l'obligation de dette de la Partner Colorado Credit Union, débloquant 6,4 millions de dollars de flux de trésorerie sur deux ans, et atteignant un jalon de traitement de plus de 25 milliards de dollars de fonds liés au cannabis.
Safe Harbor Financial (NASDAQ: SHFS) hat seine Ergebnisse für das vierte Quartal und das Gesamtjahr 2024 veröffentlicht, die eine gemischte Leistung zeigen. Der Umsatz im Q4 2024 betrug 3,7 Millionen Dollar, ein Rückgang von 4,5 Millionen Dollar im Q4 2023, aber ein Anstieg um 5% im Vergleich zum Q3 2024. Die Zinserträge aus Krediten zeigten ein starkes Wachstum und stiegen im Q4 um 82% im Vergleich zum Vorjahr und um 123% für das Gesamtjahr 2024.
Der Umsatz für das Gesamtjahr 2024 betrug 15,2 Millionen Dollar, verglichen mit 17,6 Millionen Dollar im Jahr 2023. Das Unternehmen erzielte drei Jahre in Folge ein positives bereinigtes EBITDA von 2,9 Millionen Dollar für 2024. Die Betriebskosten sanken um 42% auf 22,3 Millionen Dollar im Jahr 2024. Das Unternehmen verzeichnete einen Nettoverlust von 48,3 Millionen Dollar, einschließlich 43,9 Millionen Dollar an nicht liquiden Bewertungsrückstellungen und 9,1 Millionen Dollar an Wertminderungsaufwendungen.
Bemerkenswerte Entwicklungen umfassen die Modifikation der Schuldenverpflichtung der Partner Colorado Credit Union, die 6,4 Millionen Dollar an Cashflow über zwei Jahre freisetzt, sowie das Erreichen eines Meilensteins bei der Verarbeitung von über 25 Milliarden Dollar an cannabisbezogenen Mitteln.
- Loan Interest Income grew 123% year-over-year to $6.6M in 2024
- Operating expenses decreased 42% to $22.3M in 2024
- Maintained positive Adjusted EBITDA of $2.9M for 2024
- Debt modification unlocked $6.4M in cash flow over next two years
- Q4 2024 revenue increased 5% sequentially from Q3 2024
- Full-year revenue declined to $15.2M from $17.6M in 2023
- Net loss increased to $48.3M from $17.3M in 2023
- Q4 2024 revenue decreased year-over-year to $3.7M from $4.5M
- Goodwill and intangible assets fully impaired to $0
- Cash position decreased to $2.3M from $4.9M year-over-year
Insights
Safe Harbor Financial's Q4 and full-year 2024 results present a transitional financial picture with mixed signals for investors. The company's strategic pivot toward lending is showing traction with loan interest income surging 82% in Q4 and 123% for the full year, demonstrating growing demand for cannabis financing services. However, total revenue declined year-over-year to
The company's cost-cutting measures yielded significant results with operating expenses decreasing
The debt modification with Partner Colorado Credit Union is particularly significant, unlocking
The balance sheet shows
— Adjusted EBITDA(1) is positive for each of the last 3 years; Adjusted Working Capital(2) is approximately positive
— Loan Interest Income increased
— Revenue for the Q4 2024 increased
— Loan Loss Reserve of approximately
— 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, Inc., d/b/a/ Safe Harbor Financial (“Safe Harbor” or the “Company”) (NASDAQ: SHFS), a leader in facilitating financial services and credit facilities to the regulated cannabis industry, announced today its unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2024.
Fourth Quarter 2024 Financial and Operational Summary
| ● | Revenue was approximately | |
| ● | Loan Interest Income increased | |
| ● | Compensation and Employee Benefits expense of approximately | |
| ● | General and Administrative Expense of approximately | |
| ● | Adjusted EBITDA(1) was positive at | |
| ● | On October 29, 2024, the Company announced it originated a | |
| ● | On December 4, 2024, Safe Harbor, Collective Clean Energy Fund and Partner Colorado announced they are collaborating to fund a | |
Full-Year 2024 Financial & Operational Summary
| ● | Revenue was approximately | |
| ● | Loan Interest Income increased | |
| ● | Operating Expenses decreased to approximately | |
| ● | Adjusted EBITDA(1) was approximately | |
| ● | Adjusted Working Capital(2) was approximately | |
(1) Adjusted EBITDA is a non-GAAP financial metric. A reconciliation of non-GAAP to GAAP measures is included below in this earnings release.
(2) Adjusted Working Capital is a non-GAAP financial metric. A reconciliation of non-GAAP to GAAP measures is included below in this earnings release.
Subsequent Operational Highlights
| ● | On December 31, 2024, the Company and PCCU entered into an Amended Commercial Alliance Agreement (the “Amended CAA”), extending the term through December 31, 2028, with automatic two-year renewal periods unless a party provides written notice of non-renewal at least 12 months before the current term expires. In addition, the Amended CAA eliminates the Company’s indemnification obligations for any losses related to any loans it facilitated under the Original Commercial Alliance Agreement or will facilitate in the future. | |
| ● | On January 16, 2025, the Company announced it had processed over | |
| ● | On January 29, 2025, Safe Harbor announced that Terry Mendez joined as Co-CEO, and he became CEO on February 28, 2025, upon the retirement of former CEO Sundie Seefried. | |
| ● | On February 12, 2025, the Company announced it had originated a | |
| ● | On March 4, 2025, Safe Harbor announced it successfully modified its debt obligation with Partner Colorado Credit Union (the “Amended PCCU Note”), unlocking | |
| ● | On March 20, 2025, the Company announced Mike Regan has joined as Head of Investor Relations and Data Science. | |
“Throughout 2024, the lending arm of Safe Harbor was a driving force for the Company as our loan interest income was up
Mendez continued, “Subsequent to the quarter end, the Company surpassed
“Finally, in a redefining transaction for the Company, we successfully modified our debt obligation with Partner Colorado Credit Union. This modification greatly improves our financial stability as we are able to unlock over
“One of the major reasons I joined Safe Harbor is the tremendous opportunity I see to build upon our strong foundation, to evolve from a single compliance solution into a provider of a broad array of services focused on addressing the needs of our clients. I believe that Safe Harbor is well positioned to offer competitive solutions designed to protect, lend, connect and enable the success of our customers and our clients,” concluded Mendez.
Full Year 2024 Financial Results
For the year ended December 31, 2024, total revenue was
Full-year 2024 operating expenses decreased over
| ● | Compensation and employee benefits expenses decreased | |
| ● | General and administrative expenses decreased | |
| ● | For the year ended December 31, 2024, the Company fully impaired goodwill and finite-lived intangible assets. Goodwill and intangible assets are now fully written down to | |
| ● | The professional services expense increased primarily due to higher legal fees related to ongoing litigation. | |
| ● | Credit Loss Expense benefitted from the elimination of the indemnity liability from the Balance Sheet as of December 31, 2024, due to the Amended CAA. | |
Net loss for full year 2024 was approximately
As of December 31, 2024, the Company had cash and cash equivalents of
| SHF Holdings, Inc. CONSOLIDATED BALANCE SHEETS | ||||||||
| December 31, 2024 (Unaudited) | December 31, 2023 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 2,324,647 | $ | 4,888,769 | ||||
| Accounts receivable – trade | 134,609 | 121,875 | ||||||
| Accounts receivable – related party | 968,023 | 2,095,320 | ||||||
| Prepaid expenses – current portion | 659,536 | 546,437 | ||||||
| Accrued interest receivable | 16,319 | 13,780 | ||||||
| Forward purchase receivable | 4,584,221 | - | ||||||
| Short-term loans receivable, net | 13,332 | 12,391 | ||||||
| Other current assets | 3,000,000 | 82,657 | ||||||
| Total Current Assets | $ | 11,700,687 | $ | 7,761,229 | ||||
| Long-term loans receivable, net | 378,854 | 381,463 | ||||||
| Property, plant and equipment, net | 3,154 | 84,220 | ||||||
| Operating lease right to use assets | 703,524 | 859,861 | ||||||
| Goodwill | - | 6,058,000 | ||||||
| Intangible assets, net | - | 3,721,745 | ||||||
| Deferred tax asset, net | - | 43,829,019 | ||||||
| Prepaid expenses – long term position | 412,500 | 562,500 | ||||||
| Forward purchase receivable | - | 4,584,221 | ||||||
| Security deposit | 19,568 | 18,651 | ||||||
| Total Assets | $ | 13,218,287 | $ | 67,860,909 | ||||
| LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 140,723 | $ | 217,392 | ||||
| Accounts payable-related party | 75,608 | 577,315 | ||||||
| Accrued expenses | 1,301,378 | 1,008,987 | ||||||
| Contract liabilities | 28,335 | 21,922 | ||||||
| Lease liabilities – current | 161,952 | 132,546 | ||||||
| Senior secured promissory note – current portion | 255,765 | 3,006,991 | ||||||
| Deferred consideration – current portion | 3,338,343 | 2,889,792 | ||||||
| Forward purchase derivative liability | 7,309,580 | - | ||||||
| Other current liabilities | 72,836 | 41,639 | ||||||
| Total Current Liabilities | $ | 12,684,520 | $ | 7,896,584 | ||||
| Warrant liabilities | 1,360,491 | 4,164,129 | ||||||
| Deferred consideration – long term portion | - | 810,000 | ||||||
| Forward purchase derivative liability | - | 7,309,580 | ||||||
| Senior secured promissory note—long term portion | 10,748,408 | 11,004,175 | ||||||
| Net deferred indemnified loan origination fees | - | 63,275 | ||||||
| Lease liabilities – long term | 712,882 | 875,447 | ||||||
| Indemnity liability | - | 1,382,408 | ||||||
| Total Liabilities | $ | 25,506,301 | $ | 33,505,598 | ||||
| Commitment and Contingencies | ||||||||
| Stockholders’ (Deficit) Equity | ||||||||
| Convertible preferred stock, $.0001 par value, 1,250,000 shares authorized, 111 and 1,101 shares issued and outstanding on December 31, 2024, and December 31, 2023, respectively | - | - | ||||||
| Class A Common Stock, $.0001 par value, 130,000,000 shares authorized, 2,783,667 and 2,728,169 issued and outstanding on December 31, 2024, and December 31, 2023, respectively | 278 | 273 | ||||||
| Additional paid in capital | 108,467,253 | 105,924,859 | ||||||
| Retained deficit | (120,755,545 | ) | (71,569,821 | ) | ||||
| Total Stockholders’ (Deficit) Equity | $ | (12,288,014 | ) | $ | 34,355,311 | |||
| Total Liabilities and Stockholders’ (Deficit) Equity | $ | 13,218,287 | $ | 67,860,909 | ||||
| SHF Holdings, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| For the year ended December 31, | ||||||||
| 2024 (Unaudited) | 2023 | |||||||
| Revenue | $ | 15,242,560 | $ | 17,562,903 | ||||
| Operating expenses | ||||||||
| Compensation and employee benefits | 7,783,331 | 10,334,212 | ||||||
| General and administrative expenses | 4,018,094 | 6,587,392 | ||||||
| Professional services | 2,518,394 | 1,858,137 | ||||||
| Lease expense | 258,477 | 315,615 | ||||||
| Credit loss (benefit) expense | (1,393,131 | ) | 290,857 | |||||
| Impairment of goodwill | 6,058,000 | 13,208,276 | ||||||
| Impairment of long-lived intangible assets | 3,090,881 | 5,699,463 | ||||||
| Total operating expenses | $ | 22,334,046 | $ | 38,293,952 | ||||
| Operating loss | (7,091,486 | ) | (20,731,049 | ) | ||||
| Other (income) expenses | ||||||||
| Interest expense | 533,390 | 1,094,736 | ||||||
| Change in fair value of warrant liabilities | (2,803,638 | ) | 1,853,920 | |||||
| Change in the fair value of deferred consideration | (361,449 | ) | (4,570,157 | ) | ||||
| Total other (income) expenses | $ | (2,631,697 | ) | $ | (1,621,501 | ) | ||
| Net loss before income tax | (4,459,789 | ) | (19,109,548 | ) | ||||
| Provision (benefit) for income taxes | $ | 43,859,686 | $ | (1,829,701 | ) | |||
| Net loss | $ | (48,319,475 | ) | $ | (17,279,847 | ) | ||
| Weighted average shares outstanding, basic | 2,772,867 | 2,128,728 | ||||||
| Basic net loss per share | $ | (17.43 | ) | $ | (8.12 | ) | ||
| Weighted average shares outstanding, diluted | 2,772,867 | 2,128,728 | ||||||
| Diluted net loss per share | $ | (17.43 | ) | $ | (8.12 | ) | ||
| SHF Holdings, Inc. Consolidated Statements of Stockholders’ (Deficit) Equity | ||||||||||||||||||||||||||||
| FOR THE YEARS ENDED DECEMBER 31, 2024 (UNAUDITED) AND 2023 | ||||||||||||||||||||||||||||
| Preferred Stock | Class A Common Stock | Additional Paid-in | Retained | Total Shareholders’ (Deficit) | ||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | (Deficit) | Equity | ||||||||||||||||||||||
| Balance, January 01, 2023 | 14,616 | $ | 1 | 1,186,644 | $ | 119 | $ | 44,808,286 | $ | (39,695,281 | ) | $ | 5,113,125 | |||||||||||||||
| Cumulative effect from adoption of CECL | - | - | - | - | - | (581,318 | ) | (581,318 | ) | |||||||||||||||||||
| Issuance of shares to Abaca shareholders | - | - | 291,791 | 29 | 4,085,047 | - | 4,085,076 | |||||||||||||||||||||
| Conversion of PIPE Shares | (13,515 | ) | (1 | ) | 628,110 | 63 | 14,013,313 | (14,013,375 | ) | - | ||||||||||||||||||
| Restricted stock units | - | - | 61,623 | 6 | 1,252,037 | - | 1,252,043 | |||||||||||||||||||||
| Stock compensation cost | - | - | - | - | 2,459,324 | - | 2,459,324 | |||||||||||||||||||||
| PCCU Restructuring | - | - | 560,000 | 56 | 38,406,352 | - | 38,406,408 | |||||||||||||||||||||
| Reversal of deferred underwriting cost | - | - | - | - | 900,500 | - | 900,500 | |||||||||||||||||||||
| Net loss | - | - | - | - | - | (17,279,847 | ) | (17,279,847 | ) | |||||||||||||||||||
| Balance, December 31, 2023 | 1,101 | $ | - | 2,728,168 | $ | 273 | $ | 105,924,859 | $ | (71,569,821 | ) | $ | 34,355,311 | |||||||||||||||
| Issuance of equity for marketing services | - | - | 12,117 | 1 | 149,999 | - | 150,000 | |||||||||||||||||||||
| Conversion of PIPE shares | (990 | ) | - | 39,600 | 4 | 866,245 | (866,249 | ) | - | |||||||||||||||||||
| Restricted stock units | - | - | 3,781 | - | 63,784 | - | 63,784 | |||||||||||||||||||||
| Stock compensation cost | - | - | - | - | 1,462,366 | - | 1,462,366 | |||||||||||||||||||||
| Net loss | - | - | - | - | - | (48,319,475 | ) | (48,319,475 | ) | |||||||||||||||||||
| Balance, December 31, 2024 | 111 | $ | - | 2,783,666 | $ | 278 | $ | 108,467,253 | $ | (120,755,545 | ) | $ | (12,288,014 | ) | ||||||||||||||
| SHF Holdings, Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| Year ended December 31, | ||||||||
| 2024 (Unaudited) | 2023 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (48,319,475 | ) | $ | (17,279,847 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization expense | 711,929 | 1,373,707 | ||||||
| Stock compensation expense | 1,575,952 | 3,739,156 | ||||||
| Net deferred indemnified loan origination fees | (63,275 | ) | (45,806 | ) | ||||
| Interest expense | - | 663,208 | ||||||
| Lease expense | 23,181 | 136,097 | ||||||
| Credit loss (benefit) expense | (1,393,131 | ) | 290,857 | |||||
| Impairment of goodwill | 6,058,000 | 13,208,276 | ||||||
| Impairment of long-lived intangible assets | 3,090,881 | 5,699,463 | ||||||
| Deferred tax expense (benefit), net | 43,859,686 | (1,829,701 | ) | |||||
| Marketing expense settled via common stock | 100,000 | - | ||||||
| Change in fair value of warrant liabilities | (2,803,638 | ) | 1,853,920 | |||||
| Change in the fair value of deferred consideration | (361,449 | ) | (4,570,157 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable - trade | (12,734 | ) | 81,183 | |||||
| Accounts receivable – related party | 1,127,297 | (863,593 | ) | |||||
| Contract assets | - | 21,170 | ||||||
| Prepaid expenses | 86,901 | (220,852 | ) | |||||
| Other current liabilities | 527 | - | ||||||
| Accrued interest receivable | (2,542 | ) | (6,460 | ) | ||||
| Deferred underwriting payable | - | (550,000 | ) | |||||
| Other current assets | (2,967,145 | ) | 40,371 | |||||
| Accounts payable | (76,672 | ) | (2,515,442 | ) | ||||
| Accounts payable – related party | (501,709 | ) | 386,660 | |||||
| Accrued expenses | 292,396 | (464,424 | ) | |||||
| Contract liabilities | 6,413 | 20,926 | ||||||
| Security deposit | (916 | ) | (856 | ) | ||||
| Net cash provided by (used in) operating activities | $ | 430,477 | $ | (832,144 | ) | |||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchase of property and equipment | - | (208,434 | ) | |||||
| Payment to Abaca Shareholder | - | (3,000,000 | ) | |||||
| Loan receivable repayment | 12,394 | 1,027,986 | ||||||
| Net cash provided by (used in) investing activities | $ | 12,394 | $ | (2,180,448 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Repayment of senior secured promissory note | (3,006,993 | ) | (488,834 | ) | ||||
| Net cash used in financing activities | $ | (3,006,993 | ) | $ | (488,834 | ) | ||
| Net decrease in cash and cash equivalents | (2,564,122 | ) | (3,501,426 | ) | ||||
| Cash and cash equivalents - beginning of period | 4,888,769 | 8,390,195 | ||||||
| Cash and cash equivalents - end of period | $ | 2,324,647 | $ | 4,888,769 | ||||
| Supplemental disclosure of cash flow information | ||||||||
| Interest paid | $ | 416,852 | $ | 450,258 | ||||
| Non-cash transactions: | ||||||||
| Marketing expense settled via common stock | $ | 50,000 | $ | - | ||||
| Shares issued for the settlement of abaca acquisition | - | 4,085,076 | ||||||
| Operating lease right of use assets recognized | - | - | ||||||
| Operating lease liabilities recognized | - | - | ||||||
| Shares issued for the settlement of PCCU debt obligation | - | 38,406,408 | ||||||
| Cumulative effect from adoption of CECL | - | 581,318 | ||||||
| Reversal of deferred underwriting cost | - | 900,500 | ||||||
| Interest recognized on PCCU settlement | - | 639,521 | ||||||
Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) and Adjusted EBITDA
To provide investors with additional information regarding our financial results, we have disclosed EBITDA and Adjusted EBITDA, both of which are non-GAAP financial measures that we calculate as net loss before taxes and depreciation and amortization expense in the case of EBITDA and further adjusted to exclude non-cash, unusual and/or infrequent costs in the case of Adjusted EBITDA. Below we have provided a reconciliation of net loss (the most directly comparable GAAP financial measure) to EBITDA and from EBITDA to Adjusted EBITDA.
We present EBITDA and Adjusted EBITDA because these metrics are a key measure used by our management to evaluate our operating performance, generate future operating plans, and make strategic decisions regarding the allocation of investment capacity. Accordingly, we believe that EBITDA and Adjusted EBITDA provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management.
EBITDA and Adjusted EBITDA have limitations as an analytical tool, and it should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are as follows:
● although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and both EBITDA and Adjusted EBITDA do not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
● EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs; and
● EBITDA and Adjusted EBITDA do not reflect tax payments that may represent a reduction in cash available to us.
Because of these limitations, you should consider EBITDA and Adjusted EBITDA alongside other financial performance measures, including net loss and our other GAAP results.
A reconciliation of net loss to non-GAAP EBITDA and Adjusted EBITDA is as follows:
| Year Ended December 31, | ||||||||
| 2024 (Unaudited) | 2023 | |||||||
| Net loss | $ | (48,319,475 | ) | $ | (17,279,847 | ) | ||
| Interest expense | 533,390 | 1,094,736 | ||||||
| Depreciation and amortization | 711,929 | 1,373,707 | ||||||
| Provision (benefit) for income taxes | 43,859,686 | (1,829,701 | ) | |||||
| EBITDA | (3,214,470 | ) | (16,641,105 | ) | ||||
| Other adjustments – | ||||||||
| Credit loss (benefit) expense | (1,393,131 | ) | 290,857 | |||||
| Change in the fair value of warrants and forward purchase derivatives | (2,803,640 | ) | 1,853,920 | |||||
| Change in the fair value of deferred consideration | (361,449 | ) | (4,570,157 | ) | ||||
| Deferred loan origination fees and costs | (63,275 | ) | 27,271 | |||||
| Stock based compensation | 1,575,952 | 3,739,156 | ||||||
| Goodwill and long-lived intangible assets impairment | 9,148,881 | 18,907,739 | ||||||
| Adjusted EBITDA | $ | 2,888,868 | $ | 3,607,681 | ||||
Working Capital and Adjusted Working Capital
While the company reported a net working capital deficit of
| # | Particulars | Amount | ||||
| A | Net working capital as reported on December 31, 2024 | $ | (983,833 | ) | ||
| B | Forward purchase contract, net | 2,725,359 | ||||
| C | Third anniversary payment consideration | 322,000 | ||||
| D | Fees paid in 2025 on the Amended PCCU Note | (53,742 | ) | |||
| Adjusted working capital as of December 31, 2024 (A+B+C+D) | $ | 2,009,784 | ||||
About Safe Harbor
Safe Harbor is among the first service providers to offer compliance, monitoring and validation services to financial institutions, providing traditional banking services to cannabis, hemp, CBD, and ancillary operators, making communities safer, driving growth in local economies, and fostering long-term partnerships. Safe Harbor, through its financial institution clients, implements high standards of accountability, transparency, monitoring, reporting and risk mitigation measures while meeting Bank Secrecy Act obligations in line with FinCEN guidance on cannabis-related businesses. Over the past decade, Safe Harbor has facilitated more than
Cautionary Statement Regarding Forward-Looking Statements
Certain information contained in this press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included herein may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Forward-looking statements may include, but are not limited to, statements with respect to trends in the cannabis industry, including proposed changes in U.S. and state laws, rules, regulations and guidance relating to Safe Harbor’s services; Safe Harbor’s ability to issue loans in the same or similar fashion; Safe Harbor’s growth prospects and Safe Harbor’s market size; Safe Harbor’s projected financial and operational performance, including relative to its competitors and historical performance; new product and service offerings Safe Harbor may introduce in the future; the impact volatility in the capital markets, which may adversely affect the price of Safe Harbor’s securities; the outcome of any legal proceedings that may be instituted against Safe Harbor; and other statements regarding Safe Harbor’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “outlook,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Safe Harbor’s filings with the U.S. Securities and Exchange Commission. Safe Harbor undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Contact Information
Mike Regan, Head of Investor Relations and Data Science
ir@SHFinancial.org
KCSA Strategic Communications
Ellen Mellody
safeharbor@kcsa.com
FAQ
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