SHF Holdings Inc (SHFS) 2023 Q2 法說會逐字稿

Greetings, and welcome to Safe Harbor Financial's second-quarter 2023 earnings conference call. As a reminder, this conference is being recorded. It is now my pleasure to turn the call over to Erica Kay from KCSA. Thank you. You may begin.

您好，歡迎參加 Safe Harbor Financial 2023 年第二季度收益電話會議。提醒一下，本次會議正在錄製中。現在我很高興將電話轉接給來自 KCSA 的 Erica Kay。謝謝。你可以開始了。

Thank you. Good afternoon, everyone, and welcome to the second-quarter 2023 earnings conference call for Safe Harbor Financial. Before we start, please note that remarks made today include forward-looking statements, including statements with respect to the company's outlook and the company's expectations regarding this market opportunities and other financial operational matters.

謝謝。大家下午好，歡迎參加 Safe Harbor Financial 2023 年第二季度財報電話會議。在我們開始之前，請注意，今天的言論包括前瞻性陳述，包括有關公司前景的陳述以及公司對這一市場機會和其他財務運營事項的預期。

Each forward-looking statement discussed on today's call is subject to risks and uncertainties that could cause actual results to differ materially from those projected in such statements. Actual results and the timing of certain events may differ materially from the results or timing predicted or implied by such forward-looking statements. And reported results should not be considered as an indication for future performance.

今天電話會議上討論的每項前瞻性聲明都面臨風險和不確定性，可能導致實際結果與此類聲明中預測的結果存在重大差異。某些事件的實際結果和時間可能與此類前瞻性陳述預測或暗示的結果或時間存在重大差異。報告的結果不應被視為未來業績的指標。

Additional information regarding these factors appears under the heading, Risk Factors, in the company's filings with the Securities and Exchange Commission, or the SEC, which are available at www.sec.gov; and on our website at ir.shfinancial.org. Forward-looking statements in this call will speak only as of today's date, and the company undertakes no obligation to update or revise any of these steps.

有關這些因素的更多信息出現在公司向美國證券交易委員會 (SEC) 提交的文件中的“風險因素”標題下，這些文件可在 www.sec.gov 上獲取；以及我們的網站 ir.shfinancial.org。本次電話會議中的前瞻性陳述僅代表今天的情況，公司不承擔更新或修改任何這些步驟的義務。

Also, during the call, Safe Harbor will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in today's earnings press release, which you can find on the company's Investor Relations website or on the SEC website. Today's call is being recorded, and a copy of the recording will be made available on Safe Harbor's Investor Relations website. All dollar amounts expressed today are in US currency.

此外，在電話會議期間，安全港還將介紹 GAAP 和非 GAAP 財務指標。今天的收益新聞稿中包含了非公認會計準則與公認會計準則措施的調節，您可以在公司的投資者關係網站或美國證券交易委員會網站上找到該新聞稿。今天的電話會議正在錄音，錄音副本將在安全港的投資者關係網站上提供。今天所有的美元金額均以美元表示。

Presenting today will be Sundie Seefried, Chief Executive Officer; and Jim Dennedy, Chief Financial Officer of Safe Harbor.

今天的演講嘉賓是首席執行官 Sundie Seefried；吉姆·丹尼迪（Jim Dennedy），安全港首席財務官。

I'll now hand the call over to Sundie. Sundie, please go ahead.

我現在將電話轉給 Sundie。孫迪，請繼續。

Thank you, Erika. And welcome to our 2023 second-quarter earnings call. We have been deeply focused in the last quarter on leveraging the unique capabilities of our proven fintech platform. And our expertise in providing licensed cannabis related businesses, or CRBs, access to the most robust suite of compliant financial solutions to support their financial growth.

謝謝你，埃里卡。歡迎參加我們的 2023 年第二季度財報電話會議。上個季度我們一直專注於利用我們經過驗證的金融科技平台的獨特功能。我們在為獲得許可的大麻相關企業（CRB）提供最強大的合規金融解決方案套件以支持其財務增長方面擁有專業知識。

Safe Harbor Financial, now on our ninth year, prides itself on being the most reliable long-term financial service provider to the cannabis industry, while building out our new services. As you know, our fintech platform provides a single point of access for commercial deposit accounts, access to payment services, and treasury management for licensed CRBs throughout our network of financial partners.

Safe Harbor Financial 現已進入第九個年頭，在打造新服務的同時，它以成為大麻行業最可靠的長期金融服務提供商而自豪。如您所知，我們的金融科技平台為整個金融合作夥伴網絡中的商業存款賬戶、支付服務和持牌 CRB 的資金管理提供單點訪問。

I am pleased to report that for a second consecutive year, we processed a record amount of quarterly deposits over $1 billion to our partner financial institutions. Allowing us to further scale our business, which is driving our top-line growth. Since inception, we have processed nearly $20 billion in cannabis-related funds, providing accountability and transparency for CRBs. In addition, our deposit growth is driving our ability to expand into new high-margin revenue channels and achieve greater levels of interest and investment income as depository, as well as depository fee income.

我很高興地向大家報告，我們連續第二年向合作​​夥伴金融機構處理的季度存款金額超過 10 億美元，創歷史新高。使我們能夠進一步擴大業務規模，從而推動我們的收入增長。自成立以來，我們已處理近 200 億美元的大麻相關資金，為 CRB 提供問責制和透明度。此外，我們的存款增長正在推動我們拓展新的高利潤收入渠道的能力，並實現更高水平的存款利息和投資收入以及託管費收入。

Before diving deeper into our operating results, I would like to take a step back to describe the current state of the market. And discuss how Safe Harbor's position within the financial service ecosystem is both unique and increasingly in demand to support the growth of companies operating within cannabis. As the cannabis industry continues to expand with medical and adult use now legal in 37 and 22 states respectively, the need for a national platform to support the industry's financial growth has never been greater.

在深入探討我們的經營業績之前，我想先回顧一下當前的市場狀況。並討論 Safe Harbor 在金融服務生態系統中的地位如何獨特，以及如何支持大麻業務公司的增長。隨著大麻產業不斷擴張，醫療大麻和成人大麻現已分別在 37 個州和 22 個州合法化，對支持該行業財務增長的國家平台的需求從未如此強烈。

Despite the industry's strong growth, CRBs continue to face barriers due to the complexity of state-by-state cannabis regulations, a lack of national standards, high risk, and banking limitations due to the Bank Secrecy Act. Safe Harbor operates at the intersection of CRBs and financial institutions, providing CRBs with access to secure, low risk, and compliant banking services, as well as affording financial institution's access to increased deposits and servicing fees.

儘管該行業增長強勁，但由於各州大麻法規的複雜性、缺乏國家標準、高風險以及《銀行保密法》造成的銀行限制，CRB 仍然面臨障礙。安全港在CRB和金融機構的交匯處運作，為CRB提供安全、低風險和合規的銀行服務，並為金融機構提供增加存款和服務費的機會。

It is important to note that even when the SAFE Banking Act is passed, cannabis banking will remain complex. Positioning Safe Harbor for continued success grounded in our proprietary, and fully compliant financial service platforms, as well as in our ability to scale our business and expand our suite of financial services.

值得注意的是，即使《安全銀行法》獲得通過，大麻銀行業務仍將很複雜。憑藉我們專有且完全合規的金融服務平台以及我們擴展業務和擴展金融服務套件的能力，使安全港能夠持續取得成功。

From a market standpoint, we are certainly seeing solid credit opportunities, focusing on real estate deals where our loan to values are under 65% and range from $1 million to $10 million. As you can see, we underwrite credit like a financial institution because we are utilizing the financial institution's balance sheet.

從市場的角度來看，我們確實看到了可靠的信貸機會，重點關注我們的貸款價值低於 65%、範圍從 100 萬美元到 1000 萬美元的房地產交易。正如您所看到的，我們像金融機構一樣承保信貸，因為我們正在利用金融機構的資產負債表。

This is an important distinction as compared to other market lenders that consider more investment focused loans. Our objective remains focused on establishing a solid foundation of real estate loans, building our relationships with our clients and then considering expanding the lending base as they succeed and grow. Safe Harbor is offering rates that result in us in building long-term relationships, so that our clients don't feel the need to secure other financing opportunities. And ultimately, remain within the Safe Harbors network of financial institutions.

與其他考慮更多以投資為重點的貸款的市場貸款機構相比，這是一個重要的區別。我們的目標仍然集中於建立堅實的房地產貸款基礎，與客戶建立關係，然後考慮在客戶成功和成長時擴大貸款基礎。 Safe Harbor 提供的利率有助於我們建立長期關係，這樣我們的客戶就不需要尋求其他融資機會。最終，留在金融機構的安全港網絡內。

We are also seeing a number of opportunities to reduce CRB's interest great expense, for the simple reason that we are able to offer better terms than our customers are able to secure from our competitors. Currently, we are able to extend terms in the 9% to 14% range, whereas our competitors are lending at rates as high as 18% to 36%.

我們還看到了許多減少 CRB 利息巨額費用的機會，原因很簡單，我們能夠提供比我們的客戶從競爭對手那裡獲得的更好的條款。目前，我們能夠延長 9% 至 14% 的期限，而我們的競爭對手的貸款利率高達 18% 至 36%。

And it's not just about interest rates. It's also due to the fact we don't charge additional honors fees or other hidden fees. We hope to put a hard money lending to the industry in the rearview mirror, focusing on normalized credit options.

這不僅僅是利率的問題。這也是因為我們不收取額外的榮譽費或其他隱藏費用。我們希望將向該行業提供的硬通貨貸款納入後視鏡，重點關注標準化的信貸選擇。

Also, given the current rising interest rate environment, we are experiencing the benefit of increased investment income on deposits held at our financial institution partners with no additional risk. This increased income, along with our lending income, diversifies us the composition of our total income. Allowing us to be less dependent on deposit fee income. Furthermore, additional income allows us to be more competitive on pricing with other products for our clients.

此外，考慮到當前利率上升的環境，我們在金融機構合作夥伴處持有的存款的投資收益增加，並且沒有額外的風險，這給我們帶來了好處。這種收入的增加以及我們的貸款收入使我們的總收入構成多樣化。讓我們減少對存款費收入的依賴。此外，額外的收入使我們能夠在為客戶提供的其他產品的定價上更具競爭力。

Turning to our key metrics. Following our record year first-quarter deposit activity, we were equally successful in the second quarter, increasing total deposits by 36% to $1.1 billion in the second quarter. This compares to $808 million in quarter two 2022.

轉向我們的關鍵指標。繼第一季度存款活動創紀錄以來，我們在第二季度同樣取得了成功，第二季度存款總額增加了 36%，達到 11 億美元。相比之下，2022 年第二季度的銷售額為 8.08 億美元。

Similarly, our balances on deposits increased 60% to $230.7 million in the second quarter of 2023, compared to $143.8 million in the second quarter of 2022, significantly increasing our balance from which we lend. Our active average accounts increased 64.5% to 1,002 in the second quarter of 2023, from 609 (sic - see press release "608") in second quarter of 2022.

同樣，我們的存款餘額在 2023 年第二季度增長了 60%，達到 2.307 億美元，而 2022 年第二季度為 1.438 億美元，顯著增加了我們的貸款餘額。我們的平均活躍賬戶數量從 2022 年第二季度的 609 個（原文如此 - 參見新聞稿“608”）增加到 2023 年第二季度的 1,002 個，增長了 64.5%。

With our managed deposit base and number of active accounts continuing to grow during the second quarter of 2023, deposit fees increased by 90%, $2.56 million compared to $1.34 million in the same period last year. 2.56

隨著我們的管理存款基礎和活躍賬戶數量在 2023 年第二季度持續增長，存款費用增加了 90%，達到 256 萬美元，而去年同期為 134 萬美元。 2.56

One of the keys to Safe Harbor's long-term success is the growing strength of our partnership with cannabis-friendly financial institutions. This network currently includes Partner Colorado Credit Union, Five Star Bank, and Pacific Valley Bank. When combined, provides Safe Harbor and its customers access to a growing national footprint. We expect these partnerships will continue to provide Safe Harbor with additional growth opportunities.

Safe Harbor 長期成功的關鍵之一是我們與大麻友好型金融機構的合作夥伴關係不斷增強。該網絡目前包括合作夥伴科羅拉多信用合作社、五星級銀行和太平洋谷銀行。合併後，Safe Harbor 及其客戶將能夠獲得不斷增長的全國足跡。我們預計這些合作夥伴關係將繼續為 Safe Harbor 提供額外的增長機會。

A prime example of the strength of our growing banking network is the recent partnership we announced with Five Star Bank in May. Not only does Five Star had the capacity to manage $1 billion-plus of deposits, it also allows us to offer CRBs access to interest-bearing money market accounts and opens the door to additional loan options.

我們最近在五月份宣布與五星級銀行建立合作夥伴關係，這就是我們不斷發展的銀行網絡實力的一個典型例子。五星級銀行不僅有能力管理超過 10 億美元的存款，還允許我們為 CRB 提供進入計息貨幣市場賬戶的機會，並為額外的貸款選擇打開了大門。

Given the significant increase in our access to two deposit capacity combined with the record number of onboarded deposits this quarter, we have increased our balance from which to lend and are advancing a number of new opportunities to grow the number and value of CRB accounts. This is particularly important given the state of the industry where lenders are scaling back their loan activity, especially acute in the cannabis industry.

鑑於我們的兩種存款能力顯著增加，加上本季度的入賬存款數量創紀錄，我們增加了貸款餘額，並正在推進一些新的機會來增加 CRB 賬戶的數量和價值。考慮到放款人正在縮減貸款活動的行業狀況，這一點尤其重要，尤其是在大麻行業。

While we continue to grow our financial institution partner network with larger multi-billion-dollar banks with national charters, we recently terminated our banking relationship with Central Bank of Arkansas. While Central Bank has been an important partner to us in the past five years, our objective is to focus on fewer, larger regional financial institutions that provide greater balance sheet growth opportunities for Safe Harbor clients.

雖然我們繼續與具有國家執照的大型數十億美元銀行發展我們的金融機構合作夥伴網絡，但我們最近終止了與阿肯色中央銀行的銀行關係。雖然中央銀行在過去五年中一直是我們的重要合作夥伴，但我們的目標是專注於數量更少、規模更大的區域金融機構，為安全港客戶提供更大的資產負債表增長機會。

While the transaction with Abaca brought Central Bank, the relationship with Arkansas centric and didn't offer a national platform. At the same time, Abaca brought us the Five Star relationship. And doing so, Safe Harbor can now offer new products on the national platform, including interest bearing accounts, real estate backed lending, and lines of credits for our cannabis businesses. These were products that we could not offer with Central Bank of Arkansas.

雖然與 Abaca 的交易帶來了中央銀行，但與阿肯色州的關係以阿肯色州為中心，並沒有提供一個全國性的平台。同時，Abaca 給我們帶來了五星級關係。這樣，安全港現在可以在國家平台上提供新產品，包括計息賬戶、房地產支持貸款以及我們大麻業務的信貸額度。這些是我們無法向阿肯色中央銀行提供的產品。

We are confident these additional products and the revenues derived from them will more than offset by any loss of revenue from the dissolution of relationship with Central Bank of Arkansas. Currently, we are working diligently to ensure our shared customers with the Central Bank of Arkansas are properly supported through the transition. And have uninterrupted access to all the Safe Harbor services, upon which they've come to rely.

我們相信，這些額外產品以及由此產生的收入將足以抵消因與阿肯色中央銀行解除關係而造成的任何收入損失。目前，我們正在努力確保我們與阿肯色中央銀行的共同客戶在過渡期間得到適當的支持。並且可以不間斷地訪問他們所依賴的所有安全港服務。

Our Safe Harbor team is working to ease the transition process for our clients in order to provide them access to more technology, lines of credits, and interest-bearing money market accounts. We are excited to share the benefit of large regional banking access with our Safe Harbor clients.

我們的安全港團隊正在努力簡化客戶的過渡流程，以便為他們提供更多技術、信貸額度和計息貨幣市場賬戶。我們很高興與我們的安全港客戶分享大型區域銀行接入的好處。

As a part of the ongoing advocate integration, we have nearly completed our post-acquisition integration, which allows for greater efficiencies and the reduction of redundancies. We will certainly realize the benefits as such actions in our bottom line by year end. These reductions and improved efficiencies were already underway prior to the dissolution of our agreement with Central Bank.

作為正在進行的倡導整合的一部分，我們幾乎完成了收購後整合，這可以提高效率並減少裁員。到年底，我們一定會意識到此類行動給我們帶來的好處。在我們與中央銀行解除協議之前，這些削減和提高效率就已經開始了。

While we are going to be taking a very conservative approach to how we view the potential revenue reduction due to the termination of our agreement with Central Bank over the next two quarters, we anticipate limited net effect for our overall business. However, we will see some top-line reduction at the revenue level.

雖然我們將採取非常保守的態度來看待未來兩個季度因與央行終止協議而導致的潛在收入減少，但我們預計對我們整體業務的淨影響有限。然而，我們將看到收入水平有所下降。

Turning to our growing lending practice in the second quarter. We strengthened our pipeline of nationwide lending opportunities to over $300 million. And originated over $15 million have senior secured loans for CRBs. In May, we closed $5.5 million in first mortgage back loans for four properties in key limited license markets, with terms to support financing for up to nine additional properties across several states.

轉向我們第二季度不斷增長的貸款業務。我們將全國范圍內的貸款機會渠道擴大到超過 3 億美元。並為 CRB 發放了超過 1500 萬美元的高級擔保貸款。 5 月份，我們為關鍵有限許可市場的四處房產完成了 550 萬美元的第一抵押貸款支持貸款，並為多個州最多九處房產提供融資支持。

The following month, we originate $6.7 million first-lien secured loan for a global real estate investment firm, and we originated $2.9 million first lien-secured loans on a key cultivation facility, expanding our lending and deposit relationship with a Tier 1 multistate operator to the total amount of aggregate credit originated and issued to $12.7 million.

接下來的一個月，我們為一家全球房地產投資公司發放了670 萬美元的第一留置權擔保貸款，並為一家關鍵種植設施發放了290 萬美元的第一留置權擔保貸款，將我們與一家一級跨國運營商的借貸和存款關係擴大到發放和發放的信貸總額為 1,270 萬美元。

Not only does our relationship with this top-performing MSOs advance our steady credit origination and placement activity into the third quarter, it also supports our effort to further diversify our collateral. We continue to build out our lending platform and add additional staff, as we are seeing increased origination and placement business. The lending arm of our business is rapidly growing. And we are seeing greater contribution of quarterly revenues coming from loan interest income and fees, reducing our dependence on depository income.

我們與這些表現最好的 MSO 的關係不僅將我們穩定的信貸發放和配售活動推進到第三季度，而且還支持我們進一步實現抵押品多元化的努力。隨著我們看到發起和配售業務的增加，我們繼續建立我們的貸款平台並增加更多員工。我們業務的貸款部門正在快速增長。我們看到貸款利息收入和費用對季度收入的貢獻更大，減少了我們對存款收入的依賴。

Loan interest income and fees have increased from 7% annual income quarter two 2022 to 12% annual income in quarter two 2023. Going forward, we believe we will see a continued increase in loan activity based on our ability to consistently increase deposits. And believe this business segment will become even larger contributor to our total revenue. As our lending platform grows in volumes, we will begin providing metrics for the average loan balance, average life to repayments, and average effective interest rate and loan status.

貸款利息收入和費用已從2022 年第二季度年收入的7% 增加到2023 年第二季度年收入的12%。展望未來，我們相信，基於我們持續增加存款的能力，我們將看到貸款活動持續增加。相信這個業務部門將成為我們總收入的更大貢獻者。隨著我們的貸款平台數量的增長，我們將開始提供平均貸款餘額、平均還款期限以及平均有效利率和貸款狀況的指標。

I also want to highlight our continued support of entrepreneurs disproportionately impacted by cannabis prohibition and enforcement. In May of 2023, we expanded our Social Equity Program which supports social equity licensees with a 20% discount off account application and monthly fees, opening 13 new accounts with new social equity operators across three states. This fantastic program was envisioned by Sophia Dennis, who has served as a relationship manager at Safe Harbor. And we are committed to expanding this program, and ensuring the cannabis industry is fair and equitable.

我還想強調我們對受到大麻禁令和執法影響不成比例的企業家的持續支持。 2023 年 5 月，我們擴大了社會股權計劃，為社會股權被許可人提供賬戶申請和月費 20% 的折扣，並在三個州的新社會股權運營商開設了 13 個新賬戶。這個奇妙的計劃是由曾擔任 Safe Harbor 項目關係經理的索菲亞·丹尼斯 (Sophia Dennis) 設想的。我們致力於擴大該計劃，並確保大麻行業的公平和公正。

Finally, I would like to share our plan to further scale our revenue and growth opportunities that we believe will help drive us to the next stage of growth. Blending remains a high priority as we look to start doubling production between now and year end, increasing revenue to support other growth activities. Building deposit balances now that we have a new partner bank will also allow us to increase investment income on deposits that were previously limited due to a balance sheet constraint.

最後，我想分享我們進一步擴大收入和增長機會的計劃，我們相信這將有助於推動我們進入下一階段的增長。混合仍然是重中之重，因為我們希望從現在到年底開始將產量翻一番，增加收入以支持其他增長活動。現在我們有了新的合作銀行，建立存款餘額也將使我們能夠增加以前因資產負債表限製而受到限制的存款投資收益。

Account growth activities, while having always been a primary focus has been organized to increase efficiencies, allowing our staff to double present reduction while streamlining the entire onboarding process. M&A opportunities continue to present opportunities for our expansion. And we will continue to focus on acquiring other portfolios that will accelerate account growth, positive growth, and lending capacity.

客戶增長活動雖然一直是主要關注點，但其組織目的是為了提高效率，使我們的員工能夠在簡化整個入職流程的同時，將現有員工人數減少一倍。併購機會繼續為我們的擴張提供機會。我們將繼續專注於收購其他投資組合，以加速賬戶增長、正增長和貸款能力。

With those comments complete, I'd like to turn the call over to Jim to discuss our financial results as of June 30, 2023. Jim?

完成這些評論後，我想將電話轉給吉姆，討論我們截至 2023 年 6 月 30 日的財務業績。吉姆？

Thank you, Sundie. And good afternoon, everyone. Our second-quarter fiscal 2023 total revenue was $4.6 million, representing a more than 145% increase from total revenue of $1.85 million in the comparable prior year period. And for the six months ending June 30, 2023, total revenue was $8.75 million, representing more than a 145% increase from total revenue of $3.5 million in the comparable prior year period. The increase in total revenue was driven by higher investment income, loan interest income, and deposit income.

謝謝你，桑迪。大家下午好。我們 2023 財年第二季度的總收入為 460 萬美元，比上年同期的總收入 185 萬美元增長了 145% 以上。截至 2023 年 6 月 30 日的六個月，總收入為 875 萬美元，比去年同期的總收入 350 萬美元增長了 145% 以上。總收入的增長是由投資收入、貸款利息收入和存款收入增加推動的。

Moving down the income statement, operating expenses in the second quarter of fiscal 2023 were $22.5 million. Excluding the impairment charges to goodwill and long-lived intangible assets, operating expenses for the quarter was $5.6 million versus $1.5 million in the comparable prior year period, and $5.8 million in the prior quarter of 2023. We will discuss the impairment matter in more detail in a moment.

從損益表往下看，2023 財年第二季度的運營支出為 2250 萬美元。不包括商譽和長期無形資產的減值費用，本季度的運營費用為560 萬美元，去年同期運營費用為150 萬美元，2023 年上季度運營費用為580 萬美元。我們將更詳細地討論減值事宜一會兒。

Operating expenses in the quarter unrelated to the impairment matter were driven by higher than planned stock-based compensation expense and professional service expenses. The $16.9 million impairment charge in the second quarter stems from the termination of the relationship with Central Bank.

本季度與減值事項無關的運營費用是由高於計劃的股票補償費用和專業服務費用推動的。第二季度1690萬美元的減值費用源於與央行關係的終止。

The company's goodwill and long-lived intangible assets were derived from the acquisition of Rockview Digital Solution or Abaca. Goodwill and intangible assets are tested for impairment at least annually, unless any events or circumstances indicate it's more likely than not that the fair value of these assets are less than their carrying values.

該公司的商譽和長期無形資產來自於收購 Rockview Digital Solution 或 Abaca。商譽和無形資產至少每年進行減值測試，除非任何事件或情況表明這些資產的公允價值很可能低於其賬面價值。

Based on the likely termination to the relationship of Central Bank, the company considered the possible decline in the operating margins and cash flow being impairment indicators for both goodwill and long-lived assets. And determined it was appropriate to perform a quantitative assessment of the goodwill and long-lived intangible assets as of June 30, 2023.

基於與央行的關係可能終止，公司認為營業利潤率和現金流量可能下降是商譽和長期資產的減值指標。並確定對截至2023年6月30日的商譽和長期無形資產進行量化評估是適當的。

The change in the carrying amount of goodwill in the amount of $19.3 million on December 31, 2022, is $13.2 million, resulting in a carrying value of goodwill on June 30, 2023, of $6.1 million. The change in the carrying amount of long-life intangible assets in the amount of $10.6 million on December 31, 2022, is $3.7 million, resulting in a carrying value of long-lived assets on June 30, 2023, of $6.2 million.

2022年12月31日商譽賬面價值為1930萬美元，變化為1320萬美元，導致2023年6月30日商譽賬面價值為610萬美元。 2022年12月31日，長期無形資產的賬面價值為1060萬美元，變化為370萬美元，導致2023年6月30日的長期資產賬面價值為620萬美元。

Fair value determination of goodwill and long-lived assets requires considerable judgment and is sensitive to changes in underlying assumptions and factors. As a result, there can be no assurance that these estimates and assumptions made for purposes of the quantitative impairment test will prove to be an accurate prediction of future results. These factors are discussed in more detail in the Form 10-Q filed today.

商譽和長期資產的公允價值確定需要大量判斷，並且對基本假設和因素的變化很敏感。因此，無法保證為定量減值測試而做出的這些估計和假設將被證明是對未來結果的準確預測。今天提交的 10-Q 表中對這些因素進行了更詳細的討論。

Consequently, net loss in the second quarter of 2023 was $17.6 million, compared to net income of $336,000 in the comparable prior year period. And for the six months ending June 30, 2023, the company reported a net loss of $19 million compared to net income of $838,000 in the first half of 2022.

因此，2023 年第二季度的淨虧損為 1,760 萬美元，而去年同期的淨收入為 336,000 美元。截至 2023 年 6 月 30 日的六個月，該公司報告淨虧損 1,900 萬美元，而 2022 年上半年的淨利潤為 838,000 美元。

When adjusting net income for interest taxes and depreciation and amortization expense and further adjustments to exclude non-cash, unusual, and/or infrequent costs, we computed adjusted EBITDA, which management believes is a measure to evaluate our operating performance. A reconciliation of net income to adjusted EBITDA is provided in the press release and 8-K filed earlier today.

在調整利息稅、折舊和攤銷費用的淨利潤以及進一步調整以排除非現金、異常和/或罕見成本時，我們計算了調整後的EBITDA，管理層認為這是評估我們經營業績的一項指標。今天早些時候提交的新聞稿和 8-K 中提供了淨利潤與調整後 EBITDA 的調節表。

Adjusted EBITDA for the quarter ending June 30, 2023, was $850,000 versus $564,000 in the comparable prior year period. And for the six months ending June 30, 2023, the company reports adjusted EBITDA of $1.3 million versus $1.1 million for the first half of 2022.

截至 2023 年 6 月 30 日的季度調整後 EBITDA 為 850,000 美元，而去年同期為 564,000 美元。截至 2023 年 6 月 30 日的六個月，該公司報告調整後 EBITDA 為 130 萬美元，而 2022 年上半年為 110 萬美元。

Moving to the balance sheet, at June 30, 2023, the company reported cash and cash equivalents of $8.2 million compared to $8.4 million at December 31, 2022. Cash used in operating activities through the second quarter of 2023 was $945,000 versus $1.2 million in cash provided by our operating activities in the comparable prior year period. This was mainly due to the previously cited higher than normal run rate for compensation and employee benefits in the first half of 2023, as well as higher than normal run rate professional services expenses.

轉到資產負債表，截至2023 年6 月30 日，該公司報告的現金和現金等價物為820 萬美元，而2022 年12 月31 日為840 萬美元。截至2023 年第二季度經營活動使用的現金為945,000 美元，而現金為120 萬美元由我們去年同期的經營活動提供。這主要是由於之前提到的 2023 年上半年薪酬和員工福利高於正常運行率，以及專業服務費用高於正常運行率。

Turning to our liquidity, the company reported a net working capital deficit on June 30, 2023, of $9.4 million versus $39.3 million at year end 2022. Our working capital deficit of $9.4 million includes $11.9 million associated with the deferred consideration owed to the sellers of Abaca in the form of common stock of the company. Excluding the common stock portion of deferred consideration, the company would have had a positive working capital of approximately $2.5 million.

談到我們的流動性，該公司於2023 年6 月30 日報告的淨營運資本赤字為940 萬美元，而2022 年底為3,930 萬美元。我們940 萬美元的營運資本赤字包括與欠賣方的遞延對價相關的1,190 萬美元。蕉麻以公司普通股的形式存在。排除遞延對價的普通股部分，該公司將擁有約 250 萬美元的正營運資金。

And looking ahead to the balance of 2023, we expect to report full-year revenue for 2023 in the range of $15.3 million to $16.3 million.

展望 2023 年，我們預計 2023 年全年收入將在 1,530 萬美元至 1,630 萬美元之間。

With that, I will now turn the call back to the operator to open the call for questions. Gordon?

現在，我將把電話轉回給接線員以打開提問電話。戈登？

(Operator Instructions)

（操作員說明）

We'll pause for just a moment to compile the Q&A roster. I show there are no questions in queue at this time. I'd like to turn the call back over to Ms. Sundie Seefried, CEO, for closing remarks.

我們將暫停片刻來整理問答名單。我顯示此時隊列中沒有任何問題。我想將電話轉回給首席執行官 Sundie Seefried 女士，讓其致閉幕詞。

We'd like to thank everyone again for joining us on today's call and for your interest in Safe Harbor Financial. This was a strong quarter for our company. And we believe our ongoing financial institution partnerships are enhancing our position, as the premier provider of banking solutions for companies operating within the legal cannabis industry. We look forward to updating you on our continued progress on our next quarterly conference call.

我們再次感謝大家參加今天的電話會議以及對 Safe Harbor Financial 的興趣。對於我們公司來說，這是一個強勁的季度。我們相信，我們持續的金融機構合作夥伴關係正在增強我們作為合法大麻行業運營公司銀行解決方案的首要提供商的地位。我們期待在下一次季度電話會議上向您通報我們的持續進展情況。

Thank you and have a great day.

謝謝您，祝您有美好的一天。

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect. Have a good day.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。祝你有美好的一天。