Shf Holdings, Inc. · NASDAQ:SHFS
Shf — Q3 2024 Earnings Presentation
26 slides from Shf's earnings presentation, December 2024
Slide 1: The U.S. Cannabis Industry's Financial Services Platform
The U.S. Cannabis Industry’s Financial Services Platform December 2024 Investor Presentation NASDAQ:SHFS
Slide 2: Disclaimers
Disclaimers NOTICE TO RECIPIENTS and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking This presentation (this “Pres
Slide 3: Disclaimers
Disclaimers HISTORICAL FINANCIAL INFORMATION OF SAFE HARBOR FINANCIAL NON-GAAP FINANCIAL MEASURES The historical financial information regarding the Company contained in this Presentation has been taken from or prepared In addition to financial information presented in accordance with GAAP, this pre
Slide 4: What We Do
Safe Harbor is a fintech platform with a What We Do stellar, 9-year track record of facilitating traditional banking and lending services to the US cannabis industry through our network of financial institution clients. December 2024 Investor Presentation |. NASDAQ:SHFS 3
Slide 5: Who We Are
Who We Are The first Nasdaq listed company with compliant cannabis finance infrastructure Expertise in cannabis banking and lending leveraging a proprietary • fintech platform Leadership and expert position in an underserved market with high • barriers to entry and regulatory oversight National foot
Slide 6: The U.S. Cannabis Industry is Growing
The U.S. Cannabis Projected Sales – Billions4 Industry is Growing $56.90 $49.70 74% 70% 12.10% of Americans live of Americans CAGR projected in $38.40 in a state where support full the US cannabis cannabis is legal1 federal market from $30.00 legalization2 2024-20303 2022 2024 2026 2028 LEGALIZATION
Slide 7: Many traditional financial institutions will not bank cannabis-related businesses
Many traditional • No Safe Harbor: Potential for prosecution for providing financial CRBs with financial services • Illegal status: Conflicting state and federal laws regarding institutions legalization will not bank • High barriers to entry: Pending/proposed legislation may Cannabis- not change the
Slide 8: Proven & compliant cannabis finance infrastructure
Proven & compliant cannabis finance infrastructure M O N T H LY C O M P L I A N C E , D E P O S I T O R Y & TRANSACTION FEES, INVESTMENT & LOAN INCOME ONBOARDING FEES Incoming Financial Transactions Proprietary Safe Proprietary Harbor Onboarding, Fintech Platform Financial Cannabis Service & Complia
Slide 9: Net Income
Net Income1,2,3 Net Income Net Income '23 v '24 thru Q3 $3,345,020 $2,486,234 $2,049,676 2023 2024 941,527 353,817 3Q23 4Q23 1Q24 2Q24 3Q24 $(19,766,081) $(748,067) 1. The Company recorded an approximately $17 million impairment charge to long-lived intangible assets and goodwill in 2Q2023. 2. A str
Slide 10: Expense Management
Expense Management1 Run-Rate Expense Run Rate Expense '23 v '24 thru Q3 $3,291,292 $3,179,139 $3,087,693 $11,142,065 $2,986,812 $2,749,753 -21%% $8,824,258 3Q23 4Q23 1Q24 2Q24 3Q24 2023 2024 1. Run-rate expenses are a non-GAAP metric, intended to capture ordinary operating expenses and excludes cert
Slide 11: Adjusted EBITDA
Adjusted EBITDA1, 2 Adjusted EBITDA Adjusted EBITA '23 v '24 thru Q3 $1,312,996 $2,825,287 +22% $1,087,360 $1,053,113 $973,642 $2,313,415 $764,285 3Q23 4Q23 1Q24 2Q24 3Q24 2023 2024 1. Adjusted EBITDA is a non-GAAP measurement. A reconciliation to as reported Net Income is in the appendix. 2. A stra
Slide 12: Interest Income & Credit Growth
Interest Income & Credit Growth Q3 ' 23 v. Q3 '24 Credit Portfolio Q3 '23 v. Q3 '24 Interest Income $1,341,501 $54,832,395 +33% +48% $906,213 $41,361,636 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Interest Income $1,836,092 $1,636,756 $1,341,501 $995,097 $906,213 3Q23 4Q23 1Q24 2Q24 3Q24 December 2024 Investor
Slide 13: Revenue Composition by %
Revenue Composition by % Q3 2023 - $ 4,325,662 Q3 2024 - $ 3,463,400 21% 39% 47% 52% 27% 14% Deposit Loan interest Investment activity fees income and fees income December 2024 Investor Presentation |. NASDAQ:SHFS 12
Slide 14: Scaling Revenue
Scaling Revenue Present Revenue Streams Future Opportunities ❖ Investment Income on Deposits ❖ New Loan Options – LOC Revenue Share ❖ Lending Fees for ❖ Loan Participation Fees (other FIs) ❖ Origination ❖ Loan Underwriting for 3rd Parties ❖ Loan Interest Income ❖ Direct Payment Processing ❖ Loan Ser
Slide 15: Growth & Expansion
Growth & Expansion Established National Footprint on which to scale Federal reserve accounts $6M <$1M $26.1M $30.5M $1M $20.5M $46.8M $35.2M $4.1M <$1M $9M <$4.1M $1M $183.7M <$1M $9.8M <$14.3M $97.7M <$1M $6.4M $3,670M $16.6M <$1M $18.6M <$1M $417M $446.4M <$1M $1M $338M $1.1M $49.1M $31.1M $1.4M <
Slide 16: Competitive Advantages
• Consistent performance: in 10th year of successfully providing access Competitive to financial services consistently to the cannabis industry Advantages • Lending & depository service access: depository relationships support “Know Your Customer” for better loan underwriting • Low cost-of-funds adv
Slide 17: Growth Strategy
Growth Strategy Organic M&A Increases in existing CRB Expand deposit base, increase revenue and expanded use of lending capacity, complement fee-based services technology platform • • Bulk acquisition of client Current legal markets relationships Acquisition via increased Through M&A and from FIs •
Slide 18: Commercial Lending Opportunity
Commercial Lending Opportunity Positioned to capture significant market share with competitive lending rates Lending Options The Safe Harbor Financial Four Ways to Lend Competitive Advantages 1. Lower cost of funds allowing for reasonable rates 1. Direct on FI Balance Sheet against of 10-15% SHF cor
Slide 19: In 10th Year of Success
In 10th Year of Success Network First-to-market advantage, creating a exclusion work Published arounds FIRST SHF Launched national leadership position cannabis Program proprietary Cashless ATM & banking book Licensing software Created Attorneys closed loop Stressing Assisting Onboarding & General co
Slide 20: Officers – Cannabis Experience Matters
Officers – Cannabis Experience Matters SUNDIE SEEFRIED TYLER BEUERLEIN Chief Executive Chief Strategic Officer Business Development • Cannabis Experience since 2014 Officer • Author of Navigating Safe Harbor: • Cannabis Experience since 2013 Cannabis Banking in a Time of • Former Chief Revenue Offic
Slide 21: Directors
Directors RICHARD CARLETON FRED NIEHAUS JONATHAN SUMMERS Independent Director; Independent Director; Independent Director; CEO, Canadian Securities Managing Partner, Chairman, Billion Pairs Exchange Interactive Global Solutions Genetic Corp. and EXMceuticals DOUGLAS FAGAN KARL RACINE CEO, Partner Co
Slide 22: Thank You
THANK YOU December 2024 Investor Presentation NASDAQ:SHFS
Slide 23: Appendix
Appendix December 2024 Investor Presentation NASDAQ:SHFS
Slide 24: Reconciliation of Revenue to as reported revenue
Reconciliation of Revenue on slide 9 to as reported revenue Revenue 3Q23 4Q23 1Q24 2Q24 3Q24 Depository Fees $ 2,233,203 $ 1,578,501 $ 1,620,994 $ 1,681,596 $ 1,646,888 Investment Income $ 1,186,246 $ 1,820,896 $ 773,819 $ 500,617 $ 475,011 Interest Income $ 906,213 $ 995,097 $ 1,636,756 $ 1,836,092
Slide 25: Reconciliation of Expense Management to as reported Operating expenses
Reconciliation of Expense Management on slide 10 to as reported Operating expenses Particulars 3Q23 4Q23 1Q24 2Q24 3Q24 Cash expense $3,291,292 $3,179,139 $2,986,812 $3,087,693 $2,749,743 Impairment expense - $2,019,000 - - - Loan loss provision ($200,932) ($86,757) ($68,787) ($97,248) $7,449 Stock
Slide 26: Reconciliation of Adjusted EBITDA to as reported Net Income
Reconciliation of Adjusted EBITDA on slide 11 to as reported Net Income Particulars 3Q23 4Q23 1Q24 2Q24 3Q24 Adjusted EBITDA $1,053,113 $1,312,996 $1,087,360 $973,642 $764,285 Provision for credit losses $200,932 $86,757 $68,787 $97,248 ($7,449) Change in the fair value of warrants and forward purch