Shf Holdings, Inc. · NASDAQ:SHFS
Shf — Investor Presentation (August 2023)
27 slides from Shf's investor presentation, August 2023
Slide 1: The U.S. Cannabis Industry's Leading Financial Services Platform
The U.S. Cannabis Industry’s Leading Financial Services Platform August 2023 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 confidential presentatio
Slide 3: Disclaimers
Disclaimers HISTORICAL FINANCIAL INFORMATION OF SAFE HARBOR FINANCIAL The historical financial information regarding the Company contained in this Presentation has been taken from or prepared based on historical financial statements, which resulted from carved-out operations of Partner Colorado Cred
Slide 4: What We Do
Safe Harbor is a fintech platform with a stellar, 9-year track record of facilitating What We Do banking and lending services to the US cannabis industry. August 2023 Investor Presentation |. NASDAQ:SHFS 3
Slide 5: Who We Are
Who We Are The only NASDAQ-listed company with fully compliant cannabis finance infrastructure Established the gold-standard in cannabis banking and lending • leveraging a proprietary fintech platform Leadership and expert position in an underserved market with • extremely high barriers to entry and
Slide 6: The U.S. Cannabis Industry is Growing
The U.S. Cannabis 38 States 23 States Industry is Growing 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 where cann
Slide 7: Traditional financial institutions will not bank cannabis-related businesses
Traditional • No Safe Harbor: Potential 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 will not Cannabis- change the cannabi
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 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 Propri
Slide 9: Q over Q Trends: Revenue Performance
Q over Q Trends: Revenue Performance1 YTD June '22 v June '23 Total Reported Quarterly Revenue $8,752,437 $4,572,058 +9% $4,180,379 +148.4% +17% $3,575,606 $3,523,993 YTD June '22 YTD June '23 4Q22 1Q23 2Q23 August 2023 Investor Presentation |. NASDAQ:SHFS 8 1. Reconciliation to as reported Total Re
Slide 10: Expense & Adjusted EBITDA
Expense & Adjusted EBITDA* Run-Rate Expense Adjusted EBITDA $4,322,509 $850,384 -5% 107% $4,125,727 $409,918 -10% $3,725,046 4Q22 1Q23 2Q23 $(1,117,938) 4Q22 1Q23 2Q23 August 2023 Investor Presentation |. NASDAQ:SHFS 9 *Reconciliation of Net Income (Loss) as reported to Adjusted EBITDA in the append
Slide 11: Revenue Composition by %
Revenue Composition by % 2% 0.5% 11% 7% 32% YTD 2Q23 YTD 2Q22 55% 80% 12% Deposit Loan interest Investment Program activity fees income and fees income licensing fees August 2023 Investor Presentation |. NASDAQ:SHFS Excludes Program Licensing Fees: 2022-2%, 2023-.3% 10
Slide 12: Revenue Composition by $
Revenue Composition by $ $87,168 $40,828 $377,133 $249,834 YTD 2Q22 $2,837,694 YTD 2Q23 $4,803,241 $2,809,764 $1,071,124 Deposit Loan interest Investment Program activity fees income and fees income licensing fees August 2023 Investor Presentation |. NASDAQ:SHFS Excludes Program Licensing Fees: 2022
Slide 13: Interest Income & Credit Growth
Interest Income & Credit Growth Interest Income Total Credit $604,381 $35,899,513 +29.6% +79% $468,048 $466,293 $20,091,428 $18,898,042 4Q22 1Q23 2Q23 4Q22 1Q23 2Q23 August 2023 Investor Presentation |. NASDAQ:SHFS 12
Slide 14: Scaling Revenue
Scaling Revenue Present Revenue Streams Future Opportunities Onboarding Fees New Loan Options – LOC Revenue Share Deposit Account/Compliance Fees Loan Participation Fees (other FIs) Transaction Fees (3rd Party Pmt Processing) Loan Underwriting for 3rd Parties Investment income on depos
Slide 15: In 9th Year of Success
In 9th 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 com
Slide 16: Growth & expansion
Growth & expansion Established National Footprint on which to scale Federal accounts held <$1M <$1M $27M $55M $24M <$1M 2015 vs. 2022 $19M $24M $5M <$1M $3M <$1M 1 STATES 41 <$1M $159M <$1M $10M <$1M $54M $6M <$1M $2,520M $18M <$1M <$1M $5M 60 ACCOUNTS 1040 $385M $134M $487M <$1M $1M $5M $19M $19M $
Slide 17: Competitive Advantages
• Consistent performance: in 9th year of successfully providing access Competitive to financial services consistently to the industry Advantages • Lending & depository service access: depository relationships support “Know Your Customer” for better loan underwriting • Low cost-of-funds advantage: ba
Slide 18: 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 19: Q2 2022 vs. Q1 2023 Growth
Q2 2022 vs. Q1 2023 Growth Accounts Q2'23 v Q2'22 Total Deposit Flow YTD June‘23 v ‘22 $2,222,320,85 2 +59% 985 +37% $1,616,960,52 7 619 Q2 2022 Q2 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% +53% $142,103,552 $2,81
Slide 20: Commercial lending opportunity
Commercial lending opportunity Uniquely positioned to capture significant market share with industry-leading lending rates CURRENT LENDING SHF ENVIRONMENT Raises equity / high yield debt Loans off of managed deposit account Loan source to deploy loans balances (= lower cost of funds) Origination tea
Slide 21: Officers
Officers SUNDIE SEEFRIED TYLER BEUERLEIN DONNIE EMMI Chief Executive Officer Chief Strategic Business Chief Legal Officer • One of the The CEO Publication’s top 20 Development Officer • Managing Partner of Hunsaker | dynamic U.S. CEOs of 2020 • Former Chief Revenue Officer & Chief Emmi, P.C. • Autho
Slide 22: 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 23: Thank You
THANK YOU August 2023 Investor Presentation NASDAQ:SHFS
Slide 24: Appendix
Appendix August 2023 Investor Presentation | NASDAQ:SHFS
Slide 25: Capitalization Overview
Capitalization Overview Stock Capitalization 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* $13.6
Slide 26: Reconciliation of Revenue to as reported revenue
Reconciliation of Revenue on slide 8 to as reported revenue Revenue 4Q22 1Q23 2Q23 Depository Fees $1,884,616 $2,245,831 $2,557,410 Investment Income $1,184,647 $1,417,152 $1,420,542 Interest Income $468,048 $466,293 $604,381 Other Income - - - All values reflected in USD Program Income $38,295 Tota
Slide 27: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) as reported to Adjusted EBITDA 4Q22 1Q23 2Q23 Net Income $(37,022,262) $(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) $(792