Shf Holdings, Inc. · NASDAQ:SHFS
Shf — Investor Presentation (March 2024)
23 slides from Shf's investor presentation, Mar 13, 2024
Slide 1: The U.S. Cannabis Industry's Financial Services Platform
The U.S. Cannabis Industry’s Financial Services Platform March 13, 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 stellar, 9-year track record of facilitating What We Do traditional banking and lending services to the US cannabis industry through our network of financial institution clients. March 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 – Billions3 Industry is Growing $56.90 $49.70 74% 70% $38.40 of Americans of Americans live in a state support full $30.00 where cannabis federal 2022 2024 2026 2028 is legal1 legalization2 LEGALIZATION 4 38 States 24 States 16 States Medical use legal Adult-use leg
Slide 7: Many traditional financial institutions will not bank cannabis-related businesses
Many traditional • No Safe Harbor: Potential for prosecution for providing CRBs with financial services financial • 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: Revenue Growth Performance
Revenue Growth Performance1 1. Core Revenue is a non-GAAP measurement. It reflects the strategic revenue on which the company focuses its growth initiatives, to include: Deposit activity and onboarding income, Loan interest income and Investment income. A reconciliation to as reported Total Revenue
Slide 10: Revenue Composition by %
Revenue Composition by % YE 2023 1% 33% 49% 17% Deposit Loan interest Investment Program activity fees income and fees income licensing fees March 2024 Investor Presentation |. NASDAQ:SHFS 9
Slide 11: Interest Income & Credit Growth
Interest Income & Credit Growth Year over Year Interest Income 1 $2,972,434 +163% $1,130,178 2022 2023 1. 2023 year end revenue cited is unaudited and unreported at this time. A strategic shift in the fourth quarter of 2023 led us to apply earned interest to the Aggregate daily average balance of SH
Slide 12: 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 13: 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 $1.2M $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 $
Slide 14: 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 15: 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 16: Commercial Lending Opportunity
Commercial Lending Opportunity Uniquely positioned to capture significant market share with industry-leading lending rates Lending Options The Safe Harbor Financial Four Ways to Lend Competitive Advantages 1. Lower cost of funds utilizing our own deposit base; 1. Direct on FI Balance Sheet against a
Slide 17: 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 18: Officers – Cannabis Experience Matters
Officers – Cannabis Experience Matters SUNDIE SEEFRIED TYLER BEUERLEIN DONNIE EMMI Chief Executive Officer Chief Strategic Business Chief Legal Officer Development Officer • Cannabis Experience since 2009 • Cannabis Experience since 2014 • Cannabis Experience since 2013 • Managing Partner of Hunsake
Slide 19: Directors
Directors RICHARD CARLETON JOHN DARWIN DOUGLAS FAGAN CEO, Canadian Securities Co-CEO, Luminous CEO, Partner Colorado Exchange Capital USA, Inc. Credit Union JENNIFER MEYERS FRED NEIHAUS CFO, Partner Colorado Managing Partner, Credit Union Interactive Global Solutions JONATHAN SUMMERS KARL RACINE Cha
Slide 20: Thank You
THANK YOU March 2024 Investor Presentation NASDAQ:SHFS
Slide 21: Appendix
Appendix March 2024 Investor Presentation | NASDAQ:SHFS
Slide 22: Capitalization Overview
Capitalization Overview Stock Capitalization Company SHF Holdings, Inc. Share Structure (millions) Ticker NASDAQ: SHFS Common Shares Outstanding (1) 54.5 Stock Price* $0.85 Fully Diluted Shares Outstanding (2) 71.4 Market Cap (millions)* $45.793 Share Price (USD) (3) $0.85 52 week High and Low* $1.5
Slide 23: Reconciliation of Revenue to as reported revenue
Reconciliation of Revenue on slide 9 to as reported revenue Revenue 4Q22 1Q23 2Q23 3Q23 4Q231 Depository Fees $1,884,616 $2,245,831 $2,557,410 $2,233,203 $1,578,501 Investment Income $1,184,647 $1,417,152 $1,420,542 $1,186,246 $1,820,896 Interest Income $468,048 $466,293 $604,381 $906,213 $995,097 P