SHF Holdings, Inc. Q2 FY2024 earnings call

• During Q2 2024, Safe Harbor continued to solidify its position as a leading financial services provider for cannabis-related businesses, with improved revenue mix and higher interest income.
• In June 2024, the company successfully issued additional lines of credit, originating $550,000 for three long-standing Colorado cannabis clients.
• In July 2024, Safe Harbor exited a $3.1 million defaulted loan, recovering full principal plus over $200,000 in accrued interest.
• The company submitted comments to the Justice Department regarding the proposal to reclassify cannabis from Schedule 1 to Schedule 3 of the Controlled Substances Act, anticipating reclassification would create a more favorable business environment for the industry.

In the second quarter of 2024, Safe Harbor Financial's total revenue was $4 million, down approximately 12% from the comparable prior year period. Loan interest income for the quarter was up approximately 204% year-over-year to approximately $1.8 million. Operating expenses in the second quarter of 2024 were approximately $3.7 million versus $22.5 million in the second quarter of 2023. Net income in the second quarter of 2024 was $942,000 compared to a net loss of $17.6 million in the prior year period. For the six months ending June 30, 2024, total revenue was $8.1 million, down approximately 7.6% from the comparable prior year period. Net income for the six months was $3 million versus a net loss of $19 million in the same prior year period. Adjusted EBITDA for the quarter ending June 30, 2024, was approximately $974,000 versus $850,000 in the comparable prior year period. For the six months ending June 30, 2024, adjusted EBITDA was approximately $2.1 million versus $1.3 million for the first half of 2023.

• Safe Harbor expects full-year 2024 revenue to be in the range of $17 million to $18 million.
• The company anticipates full-year adjusted EBITDA to be in the range of $3.75 million to $4.25 million.

• Forward-looking statements on the call are subject to risks and uncertainties that could cause actual results to differ materially from projected statements.
• Additional information regarding these risks appears in the company's filings with the SEC under the heading Risk Factors.

Q: [Operator opened the call for questions but no specific questions were posed] A: [Operator indicated no questions at this time, then Sundie thanked participants and closed the call]