SHF Holdings, Inc. reported a significant decline in financial performance for the second quarter of 2025, with revenues totaling $1.85 million, a decrease of 54.4% compared to $4.04 million in the same period of 2024. For the first half of 2025, the company generated $3.78 million in revenue, down from $8.09 million in the first half of 2024. The company also recorded a net loss of $930,715 for the quarter, compared to a net income of $941,527 in the prior year, resulting in a basic net loss per share of $0.33.
The financial results reflect a broader trend of reduced depository activity and loan interest income, alongside increased legal expenses related to ongoing litigation. Operating expenses for the second quarter were $2.82 million, down from $3.74 million in the same quarter of 2024, primarily due to lower compensation and employee benefits costs. However, the company still reported an operating loss of $971,042 for the quarter, compared to an operating income of $300,163 in the previous year.
In terms of operational developments, SHF Holdings has been actively pursuing strategic partnerships to expand its service offerings to cannabis-related businesses. The company has also undertaken restructuring measures, including renegotiating terms under its Amended PCCU Note and adjusting employee compensation to conserve liquidity. As of June 30, 2025, the company had cash and cash equivalents of $247,318, a significant decrease from $2.32 million at the end of 2024, and a net working capital deficit of $7.38 million.
The company’s stockholders’ deficit increased to approximately $17.9 million, which is below the $2.5 million minimum equity requirement for continued listing on the Nasdaq Capital Market. SHF Holdings has submitted a compliance plan to Nasdaq but has not received further commentary. The company is exploring various financing options, including discussions with potential investors and lenders, to address its liquidity challenges. Management has expressed substantial doubt about the company's ability to continue as a going concern beyond October 2025 without securing additional capital.
Looking ahead, SHF Holdings is focused on executing its business plan while addressing liquidity needs. The company is closely monitoring cash flows and prioritizing liquidity preservation, while also assessing all available strategic options. Despite the current financial challenges, management remains committed to improving the company's financial condition and operational flexibility.
About SHF Holdings, Inc.
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