Shf Holdings, Inc. · NASDAQ:SHFS
Shf — Investor Presentation (May 2024)
23 slides from Shf's investor presentation, May 2024
Slide 1: The U.S. Cannabis Industry's Financial Services Platform
The U.S. Cannabis Industry’s Financial Services Platform May 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. May 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 40 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 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 & TR AN S AC TI O N F E ES, I N V ESTM ENT & L O AN I N C O M E O N B O AR D I N G FEES Incoming Financial Transactions Proprietary Safe Proprietary Harbor Onboarding, Fintech Platform Financial
Slide 9: Core Revenue Performance
Core Revenue Performance1 Quarterly Reported Revenue $4,572,058 $4,477,492 $4,332,974 $4,180,379 $4,050,799 1Q23 2Q23 3Q23 4Q23 1Q24 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 onbo
Slide 10: Expense & Adjusted EBITDA
Expense & Adjusted EBITDA1 Run-Rate Expense Adjusted EBITDA $1,312,996 $4,125,727 $1,053,113 $1,087,360 $3,725,046 Q1 '23 vs. $850,384 Q1 '24 $3,291,292 -28% $3,179,139 $409,918 $2,986,812 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 1. Adjusted EBITDA is a non-GAAP measurement. A reconciliatio
Slide 11: Interest Income & Credit Growth
Interest Income & Credit Growth Q1 '23 v. Q1 '24 Interest Income Interest Income $1,636,756 $1,636,756 +64.4% +251% $995,547 $906,213 $466,293 $604,381 $466,293 Q1 2023 Q1 2024 1Q23 2Q23 3Q23 4Q23 1Q24 Credit Growth +3.8% $58,168,928 +32.9% $56,064,616 +17.5% $42,181,612 +78.7% $35,899,513 $20,091,4
Slide 12: Revenue Composition by %
Revenue Composition by % Q1 2023 Q1 2024 1% 0% 19% 34% 40% 54% 11% 40% Deposit Loan interest Investment Program activity fees income and fees income licensing fees May 2024 Investor Presentation |. NASDAQ:SHFS 11
Slide 13: 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 14: 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 15: 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 16: 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 17: 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 18: 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 19: 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 20: Directors
Directors RICHARD CARLETON SUNDIE SEEFRIED DOUGLAS FAGAN CEO, Canadian Securities CEO, SHF Holdings, Inc. CEO, Partner Colorado Exchange Credit Union JENNIFER MEYERS FRED NEIHAUS CFO, Partner Colorado Managing Partner, Credit Union Interactive Global Solutions JONATHAN SUMMERS KARL RACINE Chairman,
Slide 21: Thank You
THANK YOU May 2024 Investor Presentation NASDAQ:SHFS
Slide 22: Appendix
Appendix May 2024 Investor Presentation NASDAQ:SHFS
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 1Q24 Depository Fees $1,884,616 $2,245,831 $2,557,410 $2,233,203 $1,578,501 $1,620,994 Investment Income $1,184,647 $1,417,152 $1,420,542 $1,186,246 $1,820,896 $773,819 Interest Income $468,048 $466,293 $60