Safe Harbor Losses Triple in 2024

Partner Colorado Credit Union launched its cannabis lending company, Safe Harbor Financial Services (SHFS), in September 2022, and in its second full year of operation in 2024, the company incurred losses of $48.3 million, nearly triple its previous loss. While a significant portion of these losses were due to non-cash charges, the underlying earnings were also not very promising. Additionally, Safe Harbor Financial Services indicated other issues in a separate filing with the Securities and Exchange Commission (SEC).

Rather than filing a full 10K report with the SEC, Safe Harbor Financial Services submitted a press release outlining its results for the full year and providing limited details for the quarter. The company communicated to the SEC in a “Notice of Late Filing” that they require additional time to assess and disclose events that occurred after Dec. 31, including the renegotiation of debt with Partner Colorado Credit Union, and the company’s ability to continue as a going concern.

Safe Harbor Financial Services announced its financial results on Monday, with its stock price closing lower than in previous days. The stock prices may seem elevated due to a reverse stock split to comply with Nasdaq’s listing requirements. Despite its ups and downs, Partner Colorado Credit Union started with ownership of over half of Safe Harbor Financial’s stock, and as per a recent proxy statement filing, it now holds 38.8% of the company’s shares.

For the three months ending on Dec. 31, 2024, Safe Harbor Financial reported revenue of $3.7 million, a decrease from the previous quarter and year. The earnings before interest, taxes, depreciation, and amortization (EBITDA) for the fourth quarter were adjusted to $63,581, a significant drop from the prior year. The annual adjusted EBITDA for 2024 was a positive $2.9 million, but without adjustments, the EBITDA showed a loss of $3.2 million, which was still an improvement from the previous year’s loss.

The company’s cash and cash equivalents decreased to $2.3 million by the end of 2024, and its revenue for the year dropped to $15.2 million from $17.6 million in 2023. Partner Colorado Credit Union contributed $4.6 million to this revenue through deposits, activities, and client onboarding. After a spinoff in 2022, Partner Colorado members exchanged promises of cash for a secured promissory note repayable over five years, with a remaining balance of $11 million.

In a strategic move in March 2025, Partner Colorado postponed repayments on Safe Harbor Financial’s debt, providing relief and financial flexibility for the company. CEO Terry Mendez emphasized that this transaction would enhance the company’s overall business services and support long-term growth.

Sundie Seefried, the former CEO of Partner Colorado who played a pivotal role in launching Safe Harbor Financial, resigned in February from the CEO position but remains on the board. The company continues to navigate challenges and changes while striving for financial stability and growth in the evolving cannabis lending landscape.