Shf Holdings, Inc. · NASDAQ:SHFS
Shf — Q2 2024 Earnings Presentation
27 slides from Shf's earnings presentation, September 2024
Slide 1: The U.S. Cannabis Industry's Financial Services Platform
The U.S. Cannabis Industry’s Financial Services Platform September 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. September 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 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: Net Income
Net Income1,2,3 Net Income Net Income ’23 v ‘24 thru Q2 Net Income $2,486,234 $2,049,676 $941,527 $2,991,203 $2,486,234 1Q23 2Q23 3Q23 $2,049,676 4Q23 1Q24 2Q24 YTD 2Q23 YTD 2Q24 $(1,413,447) $(748,067) $1,262,879 3Q23 4Q23 1Q24 2Q24 $(19,018,014) $(17,604,567) $(748,067) 1. The Company recorded an
Slide 10: Core Revenue
Core Revenue Total Core Revenue Total Core Revenue ’23 v ‘24 thru Q2 $4,582,783 $8,712,059 $4,325,662 $4,394,494 $8,049,874 $4,129,276 $4,031,569 $4,018,305 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 YTD 2Q23 YTD 2Q24 1. Core Revenue is a non-GAAP measurement. It reflects the strategic revenue on which the compa
Slide 11: Expense Management
Expense Management1 Run-Rate Cash Expense Run Rate Cash Expense ’23 v ‘24 thru Q2 $7,850,773 $4,125,727 $3,725,046 -23% $3,291,292 $3,179,139 $3,087,693 $6,074,505 $2,986,812 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 YTD 2Q23 YTD 2Q24 1. Run-rate expenses are a non-GAAP metric, intended to capture ordinary oper
Slide 12: Adjusted EBITDA
Adjusted EBITDA1, 2 Adjusted EBITDA Adjusted EBITDA ’23 v ‘24 thru Q2 $1,312,996 $2,061,002 $1,053,113 $1,087,360 $973,642 +64% $850,384 $1,260,302 $409,918 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 YTD 2Q23 YTD 2Q24 1. Adjusted EBITDA is a non-GAAP measurement. A reconciliation to as reported Net Income is in
Slide 13: Interest Income & Credit Growth
Interest Income & Credit Growth Q2 '23 v. Q2 '24 Credit Portfolio Q2 '23 v. Q2 '24 Interest Income $1,836,092 $54,959,933 +53% +204% $35,899,513 $604,381 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Interest Income $1,836,092 $1,636,756 $995,097 $906,213 $604,831 $466,293 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 September
Slide 14: Revenue Composition by %
Revenue Composition by % Q2 2023 Q2 2024 13% 46% 42% 56% 31% 12% Deposit Loan interest Investment activity fees income and fees income September 2024 Investor Presentation |. NASDAQ:SHFS 13
Slide 15: 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 16: 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 17: 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 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: 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 20: 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 21: 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 22: 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 23: Thank You
THANK YOU September 2024 Investor Presentation NASDAQ:SHFS
Slide 24: Appendix
Appendix September 2024 Investor Presentation NASDAQ:SHFS
Slide 25: Reconciliation of Revenue to as reported revenue
Reconciliation of Revenue on slide 9 to as reported revenue Revenue 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Depository Fees $ 2,245,831 $ 2,557,410 $ 2,233,203 $ 1,578,501 $ 1,620,994 $ 1,681,596 Investment Inc $ 1,417,152 $ 1,420,542 $ 1,186,246 $ 1,820,896 $ 773,819 $ 500,617 Interest Income $ 466,293 $ 604
Slide 26: Reconciliation of Expense Management to as reported Operating expenses
Reconciliation of Expense Management on slide 10 to as reported Operating expenses 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 4,125,727 3,725,046 3,291,292 3,179,139 2,986,812 3,087,693 Cash expense - 16,888,739 - 2,019,000 - Impairment expense 66,666 511,880 (200,932) (86,757) (68,787) (97,248) Loan loss provis
Slide 27: Reconciliation of Adjusted EBITDA to as reported Net Income
Reconciliation of Adjusted EBITDA on slide 11 to as reported Net Income 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Adjusted EBITDA 409,918 850,384 1,053,113 1,312,996 1,087,360 973,642 Provision for credit losses (66,666) (511,880) 200,932 86,757 68,787 97,248 Change in the fair value of warrants and forward pur