SHFSWMEDIUM SIGNALFINANCIAL10-K

SHFSW shows improved profitability with substantially reduced losses despite nearly halved revenue, while balance sheet strengthened through significant liability reduction.

The company achieved meaningful operational improvement, cutting losses by over 95% while reducing total liabilities by nearly two-thirds, suggesting successful cost management and debt restructuring. However, the substantial revenue decline raises questions about business sustainability and growth trajectory that investors should monitor closely.

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

SHFSW demonstrated a mixed but generally positive financial picture, with net losses improving dramatically from -$48.3M to -$2.2M despite revenue declining from $15.2M to $7.7M. The balance sheet strengthened considerably with total liabilities falling from $25.5M to $9.0M and total assets growing to $17.2M, indicating successful deleveraging and improved financial positioning. The combination of reduced losses and lower debt burden suggests the company has made meaningful progress on operational efficiency and capital structure optimization.

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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