SHF (SHFS) investor relations material

Company overview and business model

• Provides compliance, banking, and lending services to cannabis-related businesses (CRBs) via a proprietary fintech platform operating in 41 states and territories.

• Revenue is generated from compliance service fees, account-based fee income, investment income on custodied deposits, and loan program income from financial institutions serving the cannabis industry.

• The business model relies heavily on a partnership with Partner Colorado Credit Union (PCCU), which accounts for the majority of revenue and holds most client deposits.

• Recent expansion includes the acquisition of 420 IT Solutions, enhancing advisory and technology services for the cannabis sector.

• Growth initiatives focus on expanding deposit and lending business, managed services, and strategic partnerships with private capital sources.

Financial performance and metrics

• 2025 revenue was $7.7 million, down 49.7% from $15.2 million in 2024, primarily due to reduced loan program income and investment income.

• Net loss for 2025 was $2.2 million, a significant improvement from a $48.3 million loss in 2024, which included a large deferred tax asset valuation adjustment.

• Cash and cash equivalents were $6.8 million as of December 31, 2025, with net working capital of $5.7 million.

• Adjusted EBITDA for 2025 was $(3.9) million, reflecting structural changes in revenue arrangements and market conditions.

• Substantial doubt exists about the ability to continue as a going concern due to recurring operating losses and negative cash flows.

Use of proceeds and capital allocation

• No proceeds will be received from the resale of shares by selling stockholders; proceeds from any cash exercise of Series B Warrants (up to $15.5 million) will be used for working capital and general corporate purposes.

• September 2025 Recapitalization eliminated $18 million in debt, raised $6.7 million in new capital, and established a $150 million equity line of credit (ELOC), expandable to $500 million.