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 Jan. 4, 2024, the company announced it originated a $9 million first lien secured loan for a major, MSO-operated cultivation facility in Denver, Colo.
- 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 Dec. 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.
