Exhibit
99.1
Safe
Harbor Financial Reports Second Quarter 2026 Results and Provides Corporate Update
Second
Quarter 2026 Revenue of Approximately $1.9 Million, Up 4.8% Year Over Year
Loan
Program Income Up 50.7% Year Over Year to Approximately $0.8 Million
Average
Deposit Balances Increased 6.8% Year Over Year to $108.4 Million, Reflecting Continued Momentum from Enhanced Marketing and a Customer-Focused
Growth Strategy
Cash
and Cash Equivalents of $5.7 Million and Stockholders’ Equity of $6.1 Million as of June 30, 2026
DENVER,
August 10, 2026 (GLOBE NEWSWIRE): SHF Holdings, Inc., d/b/a Safe Harbor Financial (“Safe Harbor” or the “Company”)
(NASDAQ: SHFS), a leading fintech platform serving the banking, lending, and financial services needs of the regulated cannabis and hemp
industries, today announced its financial results for the second quarter ended June 30, 2026.
“Our
second quarter results reflect the continued execution of the growth strategy we have been building over the past several quarters,”
said Terrance Mendez, Chief Executive Officer and Chief Financial Officer of Safe Harbor. “Loan program income grew more than 50%
year over year for the second consecutive quarter, and average deposit balances increased 6.8% year over year to $108.4 million, with
our trailing 14-day average balance up 7.9%. We believe this deposit growth is a direct result of the enhanced marketing and customer-focused
initiatives we have put in place, which are winning new customers and increasing average balances across our platform.”
“As
expected, general and administrative expenses increased year over year, primarily reflecting continued strategic investment in marketing,
brand awareness and systems, together with a franchise tax refund recognized in the second quarter of 2025 that did not recur this year,”
Mr. Mendez continued. “Our underlying expense trends remain consistent with our commitment to disciplined cost management, and
we continue to identify further opportunities for efficiency even as we invest in the platform.”
“Growth
and execution remain our top priorities for the remainder of 2026,” Mr. Mendez added. “We are continuing to invest in the
people, systems and products that support that our growth, including the expansion of our consulting and managed services offering and
our purpose-built pooled employer retirement plan, which has already onboarded multiple clients and earned the endorsement of Canopy
HR as the recommended retirement solution for its cannabis-focused clients. Combined with the continued build-out of our Safe Harbor
Institutional Infrastructure-as-a-Service model for financial institutions, we believe these investments, paired with continued expense
control, position Safe Harbor to capture the growing opportunity in front of us.”
On
the regulatory front, Mr. Mendez added, “the Department of Justice’s April 23 order placing state-licensed medical cannabis
on Schedule III, followed by the DEA’s expedited hearing on broader rescheduling held between June 29 and July 15, reflect continued
momentum toward a more favorable federal cannabis policy environment. While the timing and ultimate scope of further federal action remain
uncertain, we believe Safe Harbor remains well positioned to benefit as the addressable market for our compliance platform continues
to expand.”
Second
Quarter 2026 Operational Highlights
| |
● |
Board of Directors Expansion (April 2026): Appointed
Tyler Klimas and Sean Tonner to the Board of Directors effective April 22, 2026, adding deep cannabis regulatory and strategic communications
expertise. Sundie Seefried resigned from the Board on April 20, 2026. |
| |
|
|
| |
● |
Safe Harbor Retirement Plan Launch (April 2026): Introduced
the Safe Harbor Pooled Employer 401(k) Plan, a purpose-built, fully transparent and compliant pooled employer retirement plan that provides
state-legal cannabis businesses with access to institutional-quality retirement benefits. |
| |
|
|
| |
● |
Continued Deposit and Relationship Growth (Second Quarter
2026): Average deposit balances increased 6.8%, or $7.0 million, year over year to $108.4 million, and average account balances increased
6.3% year over year, reflecting the continued success of the Company’s enhanced marketing and customer-focused growth initiatives. |
| |
|
|
| |
● |
Federal Cannabis Rescheduling Developments (April to July
2026): Following the Department of Justice’s April 23, 2026 order rescheduling state-licensed medical cannabis to Schedule
III, the DEA held an expedited administrative hearing between June 29 and July 15, 2026 to consider broader rescheduling of cannabis
from Schedule I to Schedule III. |
Subsequent
Operational Highlights
| |
● |
Infrastructure-as-a-Service Launch (July 2026): Introduced
the Safe Harbor Institutional Infrastructure-as-a-Service operating model, which helps financial institutions build, operate and scale
compliant cannabis banking programs. |
| |
|
|
| |
● |
Canopy HR Selects the Safe Harbor Retirement Plan (August
2026): Canopy HR, a provider of HR, compliance, benefits and administrative support for the cannabis industry serving approximately
526,000 worksite employees, selected the Safe Harbor Pooled Employer 401(k) Plan as the recommended retirement solution for its cannabis-focused
clients. Since its April 2026 launch, the plan has onboarded six new clients, including a multistate operator. |
| |
|
|
| |
● |
Capital Structure Simplification (August 2026): The
temporary reduction in the conversion price of the Company’s Series B Convertible Preferred Stock concluded on July 31, 2026, with
the conversion price reverting to $1.5528. During the reduction period, holders converted 3,198 shares of Series B Convertible Preferred
Stock into 4,920,008 shares of common stock, simplifying the Company’s capital structure. |
Balance
Sheet Highlights
| | |
June 30, 2026 (Unaudited) | | |
December 31, 2025 | |
| Cash and Cash Equivalents | |
$ | 5,729,576 | | |
$ | 6,779,040 | |
| Total Assets | |
$ | 14,153,304 | | |
$ | 17,207,024 | |
| Total Liabilities | |
$ | 8,052,337 | | |
$ | 8,971,116 | |
| Total Stockholders’ Equity | |
$ | 6,100,967 | | |
$ | 8,235,908 | |
Second
Quarter and Year-to-Date 2026 Income Statement Highlights
| | |
| |
Q2 2026 (Unaudited) | | |
Q2 2025 (Unaudited) | | |
YTD 2026 (Unaudited) | | |
YTD 2025 (Unaudited) | |
| Total Revenue | |
| |
$ | 1,934,740 | | |
$ | 1,845,334 | | |
$ | 3,910,179 | | |
$ | 3,777,686 | |
| Total Operating Expenses | |
| |
$ | 2,961,094 | | |
$ | 2,816,376 | | |
$ | 6,699,889 | | |
$ | 6,740,223 | |
| Operating Loss | |
| |
$ | (1,026,354 | ) | |
$ | (971,042 | ) | |
$ | (2,789,710 | ) | |
$ | (2,962,537 | ) |
| Net Loss | |
| |
$ | (1,513,235 | ) | |
$ | (930,715 | ) | |
$ | (3,292,452 | ) | |
$ | (1,757,914 | ) |
For the Three Months Ended June 30,
| | |
| |
2026 | | |
2025 | | |
Change ($) | | |
Change (%) | |
| Average deposit balance | |
(1) | |
$ | 108,413,858 | | |
$ | 101,463,819 | | |
$ | 6,950,039 | | |
| 6.8 | % |
| Trailing 14-day average account balance | |
(2) | |
$ | 108,933,064 | | |
$ | 100,915,015 | | |
$ | 8,018,049 | | |
| 7.9 | % |
| Average monthly account fees | |
(3) | |
$ | 229,360 | | |
$ | 276,586 | | |
$ | (47,226 | ) | |
| (17.1 | )% |
| Average active accounts | |
(4) | |
| 766 | | |
| 762 | | |
| 4 | | |
| 0.5 | % |
| Average account balance | |
(5) | |
$ | 141,532 | | |
$ | 133,155 | | |
$ | 8,377 | | |
| 6.3 | % |
| Average monthly fees per account | |
(6) | |
$ | 299 | | |
$ | 363 | | |
$ | (64 | ) | |
| (17.6 | )% |
For the Six Months Ended June 30,
| | |
| |
2026 | | |
2025 | | |
Change ($) | | |
Change (%) | |
| Average deposit balance | |
(1) | |
$ | 107,327,311 | | |
$ | 103,756,620 | | |
$ | 3,570,691 | | |
| 3.4 | % |
| Trailing 14-day average account balance | |
(2) | |
$ | 108,933,064 | | |
$ | 100,915,015 | | |
$ | 8,018,049 | | |
| 7.9 | % |
| Average monthly account fees | |
(3) | |
$ | 235,218 | | |
$ | 285,433 | | |
$ | (50,215 | ) | |
| (17.6 | )% |
| Average active accounts | |
(4) | |
| 765 | | |
| 772 | | |
| (7 | ) | |
| (0.9 | )% |
| Average account balance | |
(5) | |
$ | 140,358 | | |
$ | 134,400 | | |
$ | 5,958 | | |
| 4.4 | % |
| Average monthly fees per account | |
(6) | |
$ | 308 | | |
$ | 370 | | |
$ | (62 | ) | |
| (16.8 | )% |
| |
(1) |
Represents
the average deposit balance over the period. |
| |
(2) |
Represents
the average balance for the 14 calendar days ending on June 30th, which represents a period end balance that smooths our clients’
two-week payroll cycles. |
| |
(3) |
Reported
account activity fee revenue. |
| |
(4) |
Represents
the average of ending active accounts for each of the three months therein. |
| |
(5) |
Refer
to the section Discussion of Results of our Operations in the Company’s Quarterly Report on form 10-Q for the three
months ended June 30, 2026 for additional discussion of trends. |
| |
(6) |
Represents
the average of account activity fee revenue for the three and six months therein. |
Revenue
was approximately $1.9 million for the second quarter of 2026, a 4.8% increase compared to approximately $1.8 million in the second quarter
of 2025, driven primarily by growth in loan program income. For the six months ended June 30, 2026, revenue was approximately $3.9 million,
a 3.5% increase compared to approximately $3.8 million for the same period in 2025.
Loan
program income was approximately $0.8 million for the second quarter of 2026, an increase of 50.7% compared to approximately $0.6 million
in the second quarter of 2025, and approximately $1.7 million for the six months ended June 30, 2026, an increase of 53.1% compared to
the same period in 2025. The growth reflects the continued benefit of the Second Amended Commercial Alliance Agreement with Partner Colorado
Credit Union, effective October 1, 2025, which increased the Company’s share of loan program income to up to 65% from approximately
35% under the prior agreement.
Account
fee income was approximately $0.8 million for the second quarter of 2026, a decrease of 18.4% compared to approximately $1.0 million
in the second quarter of 2025, primarily due to lower revenue from a merchant service partner.
Investment
income was approximately $0.3 million for the second quarter of 2026, consistent with the second quarter of 2025. The average investable
deposit base grew 30% to $45.8 million from $35.3 million between those periods, offset by a decline in the Federal Reserve Interest
On Reserve Balance (IORB) rate from 4.40% to 3.65%.
Average
deposit balances increased 6.8%, or $7.0 million, year over year to $108.4 million for the second quarter of 2026, and the trailing 14-day
average account balance increased 7.9% year over year to $108.9 million. Average account balances increased 6.3% year over year to approximately
$141,500. Management believes this growth reflects the continued effectiveness of the Company’s enhanced marketing and customer-focused
growth strategy in attracting new customers and deepening existing relationships.
Total
operating expenses for the second quarter of 2026 increased 5.1% to approximately $3.0 million, compared to approximately $2.8 million
in the second quarter of 2025. For the six months ended June 30, 2026, total operating expenses decreased 0.6% to approximately $6.7
million, compared to the same period in 2025. The year-over-year increase for the quarter was primarily attributable to higher general
and administrative expenses related to strategic investments described below, partially offset by a $0.4 million credit benefit from
a risk reduction on certain loans recognized during the quarter and lower compensation and employee benefits expense.
Net
loss was approximately $(1.5) million for the second quarter of 2026, compared to a net loss of approximately $(0.9) million for the
second quarter of 2025. Net loss attributable to common stockholders was approximately $(2.5) million, or $(0.36) per basic and diluted
share, compared to approximately $(0.9) million, or $(0.33) per basic and diluted share, in the second quarter of 2025. The increase
in net loss attributable to common stockholders was primarily driven by a $1.0 million non-cash deemed dividend associated with induced
conversions of Series B Convertible Preferred Stock completed during the quarter, which had no effect on the Company’s net loss,
total stockholders’ equity or cash flows from operations.
For
more information on the Company’s quarter ended June 30, 2026 financial results, please refer to our Form 10-Q filed with the U.S.
Securities and Exchange Commission and accessible at www.sec.gov.
About
Safe Harbor:
Safe
Harbor is a cannabis-exclusive financial platform delivering smarter banking, lending, payments and business services tailored to how
the cannabis industry actually operates. As one of the original pioneers of compliant financial operations support and cannabis banking
consulting in the U.S., Safe Harbor has assisted in the processing of more than $36 billion in cannabis-related depository funds across
41 states and territories. Through its proprietary Cannabis Banking Solutions™ Platform and network of regulated financial institution
partners, Safe Harbor empowers cannabis operators to gain clarity, control and confidence in their financial operations. From daily banking
to long-term growth, Safe Harbor provides real solutions and personal support, built exclusively for cannabis. Safe Harbor is a financial
technology company, not a bank. Banking services are provided by our partner financial institutions. For more information, visit shfinancial.org.
Cautionary
Statement Regarding Forward-Looking Statements:
Certain
information contained in this press release may contain “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. Statements other than statements of historical facts included herein may constitute forward-looking statements
and are not guarantees of future performance or results and involve a number of risks and uncertainties. Forward-looking statements may
include, but are not limited to, statements with respect to trends in the cannabis industry, including proposed changes in U.S. and state
laws, rules, regulations and guidance relating to Safe Harbor’s services; Safe Harbor’s growth prospects and Safe Harbor’s
market size; Safe Harbor’s projected financial and operational performance, including relative to its competitors and historical
performance; success or viability of new product and service offerings Safe Harbor may introduce in the future; the impact of volatility
in the capital markets, which may adversely affect the price of Safe Harbor’s securities; the outcome of any legal proceedings
that have been or may be brought by or against Safe Harbor; and other statements regarding Safe Harbor’s expectations, hopes, beliefs,
intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations
of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intends,”
“outlook,” “may,” “might,” “plan,” “possible,” “potential,” “predict,”
“project,” “should,” “would,” and similar expressions may identify forward-looking statements, but
the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections
and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks
and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors,
including those described from time to time in Safe Harbor’s filings with the U.S. Securities and Exchange Commission, including
the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and its Quarterly Report on Form 10-Q for the quarter
ended June 30, 2026. Safe Harbor undertakes no duty to update any forward-looking statement made herein. All forward-looking statements
speak only as of the date of this press release.
Safe
Harbor Investor Relations Contact:
ir@SHFinancial.org
Safe
Harbor Media Relations Contact:
safeharbor@kcsa.com
SHF
Holdings, Inc.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| | |
Three Months Ended June 30, | | |
Six Months Ended June 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Revenue | |
$ | 1,934,740 | | |
$ | 1,845,334 | | |
$ | 3,910,179 | | |
$ | 3,777,686 | |
| Operating Expenses: | |
| | | |
| | | |
| | | |
| | |
| Compensation and employee benefits | |
| 1,477,615 | | |
| 1,583,051 | | |
| 3,138,273 | | |
| 2,955,532 | |
| Professional services | |
| 792,804 | | |
| 712,337 | | |
| 1,938,613 | | |
| 2,211,871 | |
| Rent expense | |
| 60,971 | | |
| 63,185 | | |
| 112,403 | | |
| 124,191 | |
| Amortization of contract asset | |
| 129,072 | | |
| - | | |
| 258,144 | | |
| - | |
| Credit benefit | |
| (386,119 | ) | |
| - | | |
| (702,695 | ) | |
| - | |
| General and administrative expenses | |
| 886,751 | | |
| 457,803 | | |
| 1,955,151 | | |
| 1,448,629 | |
| Total operating expenses | |
| 2,961,094 | | |
| 2,816,376 | | |
| 6,699,889 | | |
| 6,740,223 | |
| Operating loss | |
| (1,026,354 | ) | |
| (971,042 | ) | |
| (2,789,710 | ) | |
| (2,962,537 | ) |
| Other (Expenses) Income: | |
| | | |
| | | |
| | | |
| | |
| Change in fair value of warrant liabilities | |
| 14,598 | | |
| 138,158 | | |
| 31,197 | | |
| 1,254,240 | |
| Change in fair value of deferred consideration | |
| - | | |
| (40,960 | ) | |
| - | | |
| 120,040 | |
| Net loss on disposal of securities | |
| (340,408 | ) | |
| - | | |
| (340,408 | ) | |
| - | |
| Issuance cost from the sale of the ELOC | |
| (182,229 | ) | |
| - | | |
| (210,109 | ) | |
| - | |
| Interest expense | |
| (2,290 | ) | |
| (115,341 | ) | |
| (6,870 | ) | |
| (228,127 | ) |
| Interest income | |
| 23,448 | | |
| - | | |
| 23,448 | | |
| - | |
| Total other (expenses) income | |
| (486,881 | ) | |
| (18,143 | ) | |
| (502,742 | ) | |
| 1,146,153 | |
| Net loss before income tax | |
| (1,513,235 | ) | |
| (989,185 | ) | |
| (3,292,452 | ) | |
| (1,816,384 | ) |
| Income tax benefit | |
| - | | |
| 58,470 | | |
| - | | |
| 58,470 | |
| Net loss | |
| (1,513,235 | ) | |
| (930,715 | ) | |
| (3,292,452 | ) | |
| (1,757,914 | ) |
| Deemed dividends | |
| (981,146 | ) | |
| - | | |
| (1,068,758 | ) | |
| - | |
| Net loss attributable to common stockholders | |
$ | (2,494,381 | ) | |
$ | (930,715 | ) | |
$ | (4,361,210 | ) | |
$ | (1,757,914 | ) |
| Weighted average shares outstanding, basic and diluted | |
| 6,928,023 | | |
| 2,826,468 | | |
| 5,647,674 | | |
| 2,806,841 | |
| Basic and diluted net loss per share | |
$ | (0.36 | ) | |
$ | (0.33 | ) | |
$ | (0.77 | ) | |
$ | (0.63 | ) |
SHF
Holdings, Inc.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
| | |
June 30, 2026 | | |
December 31, 2025 | |
| | |
| | |
| |
| ASSETS | |
| | | |
| | |
| Current Assets: | |
| | | |
| | |
| Cash and cash equivalents | |
$ | 5,729,576 | | |
$ | 6,779,040 | |
| Accounts receivable – trade | |
| 21,010 | | |
| 31,376 | |
| Accounts receivable – related party | |
| 683,887 | | |
| 1,009,483 | |
| Prepaid expenses | |
| 532,632 | | |
| 862,400 | |
| Contract asset | |
| 516,283 | | |
| 516,283 | |
| Other current assets | |
| 3,454,688 | | |
| 3,000,000 | |
| Total Current Assets | |
| 10,938,076 | | |
| 12,198,582 | |
| Operating lease right to use asset | |
| 469,017 | | |
| 547,186 | |
| Investment in preferred securities | |
| - | | |
| 1,450,000 | |
| Prepaid expenses | |
| 233,783 | | |
| 414,329 | |
| Contract asset | |
| 2,323,273 | | |
| 2,581,417 | |
| Other assets | |
| 189,155 | | |
| 15,510 | |
| Total Assets | |
$ | 14,153,304 | | |
$ | 17,207,024 | |
| | |
| | | |
| | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | | |
| | |
| Current Liabilities: | |
| | | |
| | |
| Accounts payable | |
$ | 530,398 | | |
$ | 189,828 | |
| Accounts payable-related party | |
| 158,725 | | |
| 171,365 | |
| Accrued expenses | |
| 824,169 | | |
| 1,310,463 | |
| Deferred revenue | |
| - | | |
| 15,415 | |
| Operating lease liability | |
| 189,902 | | |
| 181,963 | |
| Deferred consideration | |
| 3,000,000 | | |
| 3,000,000 | |
| Stand-ready guarantee liability | |
| 711,670 | | |
| 711,667 | |
| Financial indemnification liability | |
| 232,516 | | |
| 433,968 | |
| Other current liabilities | |
| 562,388 | | |
| 485,055 | |
| Total Current Liabilities | |
| 6,209,768 | | |
| 6,499,724 | |
| Stand-ready guarantee liability | |
| 889,468 | | |
| 1,245,416 | |
| Financial indemnification liability | |
| 512,506 | | |
| 657,804 | |
| Operating lease liability | |
| 432,172 | | |
| 528,552 | |
| Warrant liabilities | |
| 8,423 | | |
| 39,620 | |
| Total Liabilities | |
$ | 8,052,337 | | |
$ | 8,971,116 | |
| Commitments and Contingencies (Note 16) | |
| | | |
| | |
| Stockholders’ Equity | |
| | | |
| | |
| Convertible preferred stock, $.0001 par value, 1,250,000 shares authorized, 111 issued and outstanding on June 30, 2026, and December 31, 2025, respectively | |
| - | | |
| - | |
| Series B Convertible Preferred Stock, $.0001 par value, 35,000 shares authorized, 27,134 and 30,808 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively | |
| 3 | | |
| 3 | |
| Class A Common Stock, $.0001 par value, 1,000,000,000 shares authorized, 12,332,955 and 4,281,523 issued and outstanding on June 30, 2026, and December 31, 2025, respectively | |
| 1,233 | | |
| 428 | |
| Additional paid-in capital | |
| 132,308,726 | | |
| 131,152,020 | |
| Accumulated deficit | |
| (126,208,995 | ) | |
| (122,916,543 | ) |
| Total Stockholders’ Equity | |
$ | 6,100,967 | | |
$ | 8,235,908 | |
| Total Liabilities and Stockholders’ Equity | |
$ | 14,153,304 | | |
$ | 17,207,024 | |
SHF
Holdings, Inc.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| | |
Six Months Ended June 30, | |
| | |
2026 | | |
2025 | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | |
| | | |
| | |
| Net loss | |
$ | (3,292,452 | ) | |
$ | (1,757,914 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: | |
| | | |
| | |
| Depreciation expense | |
| - | | |
| 2,518 | |
| Net loss on disposal of securities | |
| 340,408 | | |
| - | |
| Amortization of contract asset | |
| 258,144 | | |
| - | |
| Amortization of prepaid consulting (Series B Preferred Stock) | |
| 84,374 | | |
| - | |
| Issuance cost from the sale of the ELOC | |
| 210,109 | | |
| - | |
| Stock compensation expense | |
| 100,431 | | |
| 783,762 | |
| Lease expense | |
| (10,272 | ) | |
| (2,172 | ) |
| Change in the fair value of deferred consideration | |
| - | | |
| (120,040 | ) |
| Credit benefit | |
| (702,695 | ) | |
| - | |
| Change in fair value of warrant | |
| (31,197 | ) | |
| (1,254,240 | ) |
| Changes in operating assets and liabilities: | |
| | | |
| | |
| Accounts receivable – trade | |
| 10,366 | | |
| 83,674 | |
| Accounts receivable – related party | |
| 325,596 | | |
| 385,168 | |
| Prepaid expenses | |
| 438,166 | | |
| 317,545 | |
| Accrued interest receivable | |
| - | | |
| 14,214 | |
| Other assets | |
| (173,645 | ) | |
| (286,672 | ) |
| Other current liabilities | |
| (217,690 | ) | |
| (58,370 | ) |
| Accounts payable | |
| 340,570 | | |
| 486,818 | |
| Accounts payable – related party | |
| (12,640 | ) | |
| 89,309 | |
| Accrued expenses | |
| (486,294 | ) | |
| (480,811 | ) |
| Contract liabilities | |
| - | | |
| (18,127 | ) |
| Deferred revenue | |
| (15,415 | ) | |
| - | |
| Net cash used in operating activities | |
| (2,834,136 | ) | |
| (1,815,338 | ) |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |
| | | |
| | |
| Proceeds from sale and redemption of preferred securities | |
| 654,904 | | |
| - | |
| Net proceeds from loan repayment | |
| - | | |
| 6,545 | |
| Net cash provided by investing activities | |
| 654,904 | | |
| 6,545 | |
| CASH FLOWS FROM FINANCING ACTIVITIES: | |
| | | |
| | |
| Proceeds from the sale of Class A common stock | |
| 1,129,768 | | |
| - | |
| Repayment of senior secured promissory note | |
| - | | |
| (255,765 | ) |
| Net share settlement for stock compensation expense | |
| - | | |
| (12,771 | ) |
| Net cash provided by (used in) financing activities | |
| 1,129,768 | | |
| (268,536 | ) |
| Net decrease in cash and cash equivalents | |
| (1,049,464 | ) | |
| (2,077,329 | ) |
| Cash and cash equivalents – beginning of period | |
| 6,779,040 | | |
| 2,324,647 | |
| Cash and cash equivalents – end of period | |
$ | 5,729,576 | | |
$ | 247,318 | |
| Supplemental Disclosure of Non-Cash Investing and Financing Activities | |
| | | |
| | |
| Reclassification of forward purchase receivable | |
$ | - | | |
| (4,584,221 | ) |
| Receivable for unsettled ADTX sale | |
$ | 454,688 | | |
| - | |
| Forfeiture of Series B shares related to consulting contract | |
$ | 72,148 | | |
| - | |
| Accrued redemption payable to Series B holders | |
$ | 295,022 | | |
$ | - | |
| Supplemental Disclosure of Cash Flows Information | |
| | | |
| | |
| Interest paid | |
$ | 6,870 | | |
$ | 228,901 | |
