--Net Income increased 245% year-over-year to approximately $2.0 million in the first quarter of 2024 --Adjusted EBITDA increased 165.3% to approximately $1.1 million(1) --Operating Expenses decreased 35.8% versus the same period in 2023 GOLDEN, Colo., May 13, 2024 (GLOBE NEWSWIRE) -- SHF Holdings, Inc., d/b/a/ Safe Harbor Financial ("Safe Harbor" or the "Company") (NASDAQ:SHFS), a leader in facilitating financial services and credit facilities to the regulated cannabis industry, announced today its financial results for the first quarter ended March 31, 2024. First Quarter 2024 Financial & Operational Summary Net Income increased 245% to approximately $2.0 million, compared to a net loss of approximately $1.4 million in the same period of 2023; Revenue was approximately $4.1 million, compared to approximately $4.2 million for the first quarter of 2023; Gross profit was approximately $325,000, versus a gross loss of approximately $1.6 million in the first quarter of 2024; Operating Expenses decreased 35.8% to $3.7 million, compared to $5.8 million in the first quarter of 2023; Adjusted EBITDA increased 165.3% to approximately $1.1 million, compared to $410,000 for the first quarter of 2023(1). (1) Adjusted EBITDA is a non-GAAP financial metric. A reconciliation of non-GAAP to GAAP measures is included below in this earnings release. "We continued to expand the breadth of our service offering in the first quarter, advancing several strategic initiatives and establishing a more diversified income base," said Sundie Seefried, Chief Executive Officer of Safe Harbor Financial. "We have been very successful with this effort, specifically within our lending program, nearly tripling our loan book year-over-year and driving a 251% increase in our loan income to $1.64 million in the first quarter of 2024 compared to $466,293 in the comparable period of 2023." "These results speak directly to our unique ability to support the unmet financial needs of the cannabis industry, and the continued growth opportunity for Safe Harbor to address the evolving financial requirements of cannabis related businesses (CRB's) through our streamlined platform. With the increasing likelihood that cannabis will be reclassified from a Schedule I drug to a Schedule III drug, we believe there will be a material increase of capital from these businesses moved into financial institutions, thereby creating stronger demand for our services," concluded Seefried. First Quarter 2024 Operational Highlights On January 4, 2024, the Company announced it originated a $9 Million first lien secured loan for a major, MSO-operated cultivation facility in Denver, Colorado. On March 12, 2024, Safe Harbor announced it originated a $4.6 Million secured credit facility for a Michigan cannabis operator. Other Significant Events On April 15th, 2024, the Company appointed CEO, Sundie Seefried to its Board of Directors. First Quarter 2024 Financial Results For the first quarter ended March 31, 2024, total revenue decreased 3% to $4.1 million, compared to $4.2 million in the prior year period, due to fewer accounts and lower balances on deposit versus the prior year period. First quarter 2024 net income was approximately $2.0 million, compared to a net loss of $1.4 million in the prior year period. The driver of the net income produced in the first quarter 2024 was due to lower expenses across the Company. Overall, operating expenses in the period decreased approximately 35.8% to $3.7 million, compared to $5.8 million in the prior year period. As of March 31, 2024, the Company had cash and cash equivalents of $5.6 million, compared to $4.9 million at December 31, 2023. For more information on the Company's first quarter 2024 financial results, please refer to our Form 10-Q for the quarter ended March 31, 2024 filed with the U.S. Securities & Exchange Commission (the "SEC") and accessible at www.sec.gov.   SHF Holdings, Inc.CONDENSED CONSOLIDATED BALANCE SHEETS                   March 31, 2024(Unaudited)     December 31, 2023                 ASSETS                 Current Assets:                 Cash and cash equivalents   $ 5,626,362     $ 4,888,769   Accounts receivable – trade     153,208       121,875   Accounts receivable – related party     1,111,390       2,095,320   Prepaid expenses – current portion     506,634       546,437   Accrued interest receivable     16,891       13,780   Short-term loans receivable, net     12,620       12,391   Other current assets     -       82,657   Total Current Assets   $ 7,427,105     $ 7,761,229   Long-term loans receivable, net     379,863       381,463   Property, plant and equipment, net     45,366       84,220   Operating lease right to use assets     820,777       859,861   Goodwill     6,058,000       6,058,000   Intangible assets, net     3,564,890       3,721,745   Deferred tax asset     44,278,374       43,829,019   Prepaid expenses – long term position     525,000       562,500   Forward purchase receivable     4,584,221       4,584,221   Security deposit     18,875       18,651   Total Assets   $ 67,702,471     $ 67,860,909   LIABILITIES AND STOCKHOLDERS' EQUITY                 Current Liabilities:                 Accounts payable   $ 179,242     $ 217,392   Accounts payable-related party     125,693       577,315   Accrued expenses     645,635       1,008,987   Contract liabilities     2,692       21,922   Lease liabilities – current     142,863       132,546   Senior secured promissory note – current portion     3,028,738       3,006,991   Deferred consideration – current portion     2,921,257       2,889,792   Other current liabilities     62,160       41,639   Total Current Liabilities   $ 7,108,280     $ 7,896,584   Warrant liabilities     2,908,642       4,164,129   Deferred consideration – long term portion     594,000       810,000   Forward purchase derivative liability     7,309,580       7,309,580   Senior secured promissory note—long term portion     10,241,884       11,004,175   Net deferred indemnified loan origination fees     421,907       63,275   Lease liabilities – long term     835,598       875,447   Indemnity liability     1,315,263       1,382,408   Total Liabilities   $ 30,735,154     $ 33,505,598   Commitment and Contingencies (Note 13)                 Stockholders' Equity                 Convertible preferred stock, $.0001 par value, 1,250,000 shares authorized, 111 and 1,101 shares issued and outstanding on March 31, 2024, and December 31, 2023, respectively     -       -   Class A common stock, $.0001 par value, 130,000,000 shares authorized, 55,431,001 and 54,563,372 issued and outstanding on March 31, 2024, and December 31, 2023, respectively     5,545       5,458   Additional paid in capital     107,348,166       105,919,674   Retained deficit     (70,386,394 )     (71,569,821 ) Total Stockholders' Equity   $ 36,967,317     $ 34,355,311   Total Liabilities and Stockholders' Equity   $ 67,702,471     $ 67,860,909                       SHF Holdings, Inc.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)             For the three months endedMarch 31,       2024     2023                 Revenue   $ 4,050,799     $ 4,180,379                     Operating Expenses                 Compensation and employee benefits   $ 2,280,038     $ 3,659,520   General and administrative expenses     984,220       1,538,874   Professional services     460,950       449,246   Rent expense     69,437