SHFSHIGH SIGNALFINANCIAL10-K

SHFS underwent significant financial restructuring with substantially improved net losses, reduced revenue, and a notable increase in share count alongside major liability reductions.

The company's net loss improved dramatically from $48.3M to $2.2M, indicating either successful cost management or one-time charges in the prior period that did not recur. However, this improvement came alongside declining revenue, suggesting potential operational challenges or asset dispositions that warrant close monitoring.

Comparing 2026-04-15 vs 2025-04-10View on EDGAR →
FINANCIAL ANALYSIS

SHFS shows a mixed financial picture with substantially reduced net losses and meaningfully lower total liabilities (down 64.8%), suggesting successful debt reduction or restructuring activities. However, revenue declined by approximately half while total assets grew modestly by 30.2%, indicating potential shifts in the business model or asset base. The 62% increase in outstanding shares from 2.8M to 4.5M suggests equity financing activities that helped strengthen the balance sheet at the cost of dilution.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+95.5%
-$48.3M-$2.2M

Net income grew 95.5% — bottom-line growth signals improving overall business health.

Total Liabilities
Balance Sheet
-64.8%
$25.5M$9.0M

Liabilities reduced 64.8% — deleveraging improves balance sheet strength and financial flexibility.

Revenue
P&L
-49.7%
$15.2M$7.7M

Revenue declined 49.7% — significant demand weakness or market share loss warrants investigation.

Current Liabilities
Balance Sheet
-48.8%
$12.7M$6.5M

Current liabilities reduced — improved short-term financial position and working capital health.

Interest Expense
P&L
+38.7%
$803K$1.1M

Interest expense surged 38.7% — significant debt increase or rising rates materially impacting earnings.

Total Deposits
Balance Sheet
+36.4%
$2.2M$3.0M

Deposits grew 36.4% — expanding customer base or increased trust in the institution.

Total Assets
Balance Sheet
+30.2%
$13.2M$17.2M

Asset base grew 30.2% — expansion through organic growth, acquisitions, or capital deployment.

Operating Income
P&L
+23.9%
-$7.1M-$5.4M

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

LANGUAGE CHANGES
NEW — 2026-04-15
PRIOR — 2025-04-10
ADDED
As of April 10, 2026, there were 4,505,486 shares of the Company s Class A Common Stock outstanding.
Form 10-K Summary 71 Signatures 72 1 USE OF MARKET AND INDUSTRY DATA This Annual Report on Form 10-K (this Annual Report on Form 10-K or Form 10-K includes market and industry data that we have obtained from third-party sources, including, without limitation industry publications, as well as industry data prepared by our management on the basis of its knowledge of and experience in the industries in which we operate (including our management s estimates and assumptions relating to such industries based on that knowledge).
While our management believes the third-party sources referred to in this Annual Report on Form 10-K are reliable as of the date hereof, neither we nor our management have independently verified any of the data from such sources referred to in this Annual Report on Form 10-K or ascertained the underlying economic assumptions relied upon by such sources and therefore cannot guarantee that such information is accurate or complete.
Furthermore, internally prepared and third-party market prospective information, in particular, are estimates only and there may be differences between the prospective and actual results because events and circumstances may not occur as expected, and those differences may be material.
Furthermore, this Form 10-K may contain forward-looking statements regarding the potential for federal rescheduling of cannabis, the potential passage of the SAFER Banking Act of 2025 (the SAFER Banking Act ), projected growth of the cannabis market, the potential impact of regulatory changes on the Company s business, and the anticipated benefits of the Second Amended and Restated Commercial Alliance Agreement (the Second Amended CAA ).
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REMOVED
As of March 31, 2025, there were 2,784,458 shares of the Company s Class A Common Stock outstanding.
All historical share and per share amounts reflected in this report have been adjusted to reflect the reverse stock split.
While our management believes the third-party sources referred to in this Annual Report on Form 10-K are reliable, neither we nor our management have independently verified any of the data from such sources referred to in this Annual Report on Form 10-K or ascertained the underlying economic assumptions relied upon by such sources.
Furthermore, internally prepared and third-party market prospective information, in particular, are estimates only and there will usually be differences between the prospective and actual results, because events and circumstances frequently do not occur as expected, and those differences may be material.
EXPLANATORY NOTE REVERSE STOCK SPLIT On January 28, 2025, the board of directors of the Company approved a reverse stock split of the Company s Common Stock at a ratio of 1-for-20 shares, this reverse stock split became effective on March 14, 2025.
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