Shf Holdings, Inc. · NASDAQ:SHFS
Shf — Investor Presentation (August 2023)
27 slides from Shf's investor presentation, Aug 28, 2023
Slide 1: August 2023 Investor Presentation
August 2023 Investor Presentation | NASDAQ:SHFS
Slide 2: Disclaimers
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Slide 3: Disclaimers
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Slide 4: What We Do
What We Do Safe Harbor is a fintech platform with a stellar, 9-year track record of facilitating banking and lending services to the US cannabis industry.
Slide 5: Who We Are
Who We Are The only NASDAQ-listed company with fully compliant cannabis finance infrastructure \y Established the gold-standard in cannabis banking and lending es p leveraging a proprietary fintech platform Leadership and expert position in an underserved market with extremely high barriers to entry
Slide 6: The U.S. Cannabis Industry is Growing
The U.S. Cannabis 38 States 23 States Ind ustry is G rowi ng Medical use legal Medical and adult-use legal 8 States Potentially expanding legalization in 20232 >70,000 68% cannabis-related of Americans businesses (CRBs) support full federal legalization 48% of Americans live in a state >$46B Sen Woo
Slide 7: Safe Harbor problem: cannabis businesses lack banking access
HARROR Trad itional » No Safe Harbor: Potential prosecution for providing CRBs fi nancial with financial services 7 = = * Illegal status: Conflicting state and federal laws regarding institutions legalization will not bank » High barriers to entry: Pending/proposed legislation will not . change the
Slide 8: Proven & compliant cannabis finance infrastructure
Proven & compliant cannabis finance infrastructure The most robust suite of specialized financial and treasury services available to the industry MONTHLY COMPLIANCE, DEPOSITORY & TRANSACTION FEES, INVESTMENT & LOAN INCOME ONBOARDING Y FEES Incoming Financial aON Transactions Il Proprietary _ Proprie
Slide 9: Q over Q Trends: Revenue Performance
Q over Q Trends: Revenue Performance’ YTD June '22 v June '23 $3,523,993 $8,752,437 YTD June ‘22 YTD June ‘23 Total Reported Quarterly Revenue $4,572,058 - $4,180,379 - HM 0° : : $3,575,606 »” 4Q22 1Q23 2023 4. Reconkiliation to as reported Total Revenue in the appendix
Slide 10: Expense & Adjusted EBITDA
Expense & Adjusted EBITDA* Run-Rate Expense $4,322,509 <, $4,125,727 N Sei . *\< $3,725,046 Adjusted EBITDA 107%." $409,918 ~~ $850,384 $(1,117,938) 4Q22 1023 2023 1023 2023 “Reconciliation of Net Income (Loss) as reported to Adjusted EBITDA in the appendix
Slide 11: Revenue Composition by %
Revenue Composition by % 0.5% Program licensing fees Deposit Loan interest Investment activity fees income and fees income cet ashes Excludes Program Licensing Fees: 2022-2%, 2023-.3% 10
Slide 12: Revenue Composition by $
Revenue Composition by $ $87,168 $40,828 $249,834 $4,071,124 Deposit Loan interest Investment Program activity fees income and fees income licensing fees cet ashes Excludes Program Licensing Fees: 2022-$87.262, 2023-.$26,820 11
Slide 13: Interest Income & Credit Growth
Interest Income & Credit Growth $468,048 Interest Income $604,381 p 429.6% // a G $466,293 ,/ Q Total Credit $35,899,513 1 520,091, 42% $18,898,042 g 4Q22 1023 2023 4Q22 1023 2023
Slide 14: Scaling Revenue
Scaling Revenue Present Revenue Streams “+ Onboarding Fees + Deposit Account/Compliance Fees “+ Transaction Fees (3 Party Pmt Processing) “+ Investment income on deposits * Loan Origination ** Loan Interest * Loan Servicing + Program Licensing Future Opportunities *» New Loan Options - LOC Revenue S
Slide 15: In 9th Year of Success
In 9t* Year of Success Networid First-to-market advantage, creating a i Published 5 a wae Ee FIRST SHF nem national leadership position i Program Cashless ATM & cannabis ake proprietary Ga banking book Licensing software Created Attorneys Stressing Assisting Qnboarding & compliance other IS Complian
Slide 16: Growth & expansion
Growth & expansion Established National Footprint on which to scale @ Federal accounts held <SiM $55M 27M sam RSI $19M ‘ oy 2015 ——S Vs 2022 <siM 1 STATES 7 oe) a x 60 ACCOUNTS 1040 34M $487M . é DEPOSITS* 20B SiM)<s1m ae >$300M/month S23M BALANCES $13M ~$13M on Deposit* ~$220M Si <siM “Deposits hol
Slide 17: Competitive Advantages
Competitive Advantages Consistent performance: in 9th year of successfully providing access to financial services consistently to the industry Lending & depository service access: depository relationships support “Know Your Customer” for better loan underwriting Low cost-of-funds advantage: based on
Slide 18: Growth Strategy
Growth Strategy M&A. Expand deposit base, increase lending capacity, complement technology platform Organic Increases in existing CRB il revenue and expanded use of fee-based services Current legal markets. 5 Acquisition via increased aT marketing spend, which wanting to exit their service has been
Slide 19: Accounts Q2'23 v Q2'22
Accounts Q2'23 v Q2'22 Q2 2022 vs. Q1 2023 Growth Total Deposit Flow YTD June‘23 v ‘22 $2,222,320,85 2 ra 459% 2° +3% 2 oF _ $1,616,960,52 a _ | 2 . 02 2022 02.2023, YTD June '22 YTD June ‘23 Total Core Balances Q2'23 v Q2'22 Depository Fees YTD June ‘23 v ‘22 $4,307,667 $216,725,865 £53% c eee ae a
Slide 20: Commercial lending opportunity
Commercial lending opportunity Uniquely positioned to capture significant market share with industry-leading lending rates Loan source Customer acquisition Typical 2-3 yr rate Underwriting risk / security URRENT LENDING ENVIRONMENT Raises equity / high yield debt to deploy loans Origination team req
Slide 21: Officers
Officers SUNDIE SEEFRIED Chief Executive Officer * One of the The CEO Publication’s top 20 dynamic U.S. CEOs of 2020 : * Author of Navigating Safe Harbor: Cannabis Banking in a Time of Uncertainty . + Former 20 year CEO of PCCU and subsidiary, Safe Harbor Services JIM DENNEDY Chief Financial + Forme
Slide 22: Directors
Directors RICHARD CARLETON CEO, Canadian Securities Exchange JENNIFER MEYERS. CFO, Partner Colorado Credit Union JONATHAN SUMMERS, Chairman, Billion Pairs Genetic Corp. and EXMceuticals JOHN DARWIN Co-CEO, Luminous Capital USA, Inc. FRED NEIHAUS. Managing Partner, Interactive Global Solutions KARL R
Slide 23: THANK YOU
THANK YOU August 2023 Investor Presentation NASDAQ:SHFS
Slide 24: August 2023
August 2023 Investor Presentation | NASDAQ:SHFS
Slide 25: Capitalization Overview
Capitalization Overview Company SHF Holdings, Inc. Share Structure (millions) Ticker NASDAQ: SHFS Common Shares Outstanding (1) 46.4 Stock Price* $0.37 Fully Diluted Shares Outstanding (2) 59.8 Market Cap (millions)* $17.15 Share Price (USD) (3) $0.37 52 week High and Low* $13.60 - $0.33 Debt (4) $4
Slide 26: Reconciliation of Revenue on slide to as reported revenue
Reconciliation of Revenue on slide 8 to as reported revenue [Revenue | 422 1q23| 2023 Depository Fees Investment Income Interest Income Other Income Program Income Total Reported Revenue Total Core Revenue $1,884,616 $2,245,831 $2,557,410 $1,184,647 $1,417,152 $1,420,542 $468,048 $466,293 $604,381 $
Slide 27: Reconciliation of Net Income (Loss) as reported to Adjusted EBITDA
Reconciliation of Net Income (Loss) as reported to Adjusted EBITDA ee eee 1o23| 223 Net Income '$(87,022,262) $(1,413,447) (17,604,567) Interest Expense $766,795 $834,203, $353,736 Depreciation & Amortization $185,699 $396,314 $401,350 Taxes (9,252,893) $(609,277) $(652,147) EBITDA $(45,322,661) $(7