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Greetings and welcome to Safe Harbor Financial’s Third Quarter 2024 Earnings Conference Call. As a reminder, this conference is being recorded. It is now my pleasure to turn the call over to Phil Carlson from KCSA. Thank you. You may begin.

Thank you. Hello, everyone, and welcome to the third quarter 9 months 2024 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 its market opportunities and other financial operational matters. 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. 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 statements. 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. All dollar amount expressed today are in U.S. currency. Presenting today will be Sundie Seefried Chief Executive Officer; and Jim Dennedy, Chief Financial Officer of Safe Harbor. I’ll now turn the call over to Sundie. Sundie, please go ahead.

Thank you, Phil, and welcome, everyone, to our third quarter and 9 months of 2024 earnings call. Throughout the third quarter of 2024, we continued to build our credibility as a trusted financial partner for the businesses operating in and around the cannabis industry. And I am pleased to say that our best-in-class financial services platform remains the industry standard as cannabis-related businesses look to ensure regulatory compliance in this fast-changing sector. Financial highlights for the third quarter 2024 include net income, which increased 147% year-over-year to $354,000 compared to a net loss of $748,000 for the year ago period. Third quarter and 9 months 2024 loan interest income increased 48% and 143.5% year-over-year, respectively. Meanwhile, third quarter and 9 months 2024 operating expenses decreased by 13% and 66% year-over-year, respectively. Revenue for the third quarter of 2024 in which we experienced a decline from the second quarter in our fee, loan and investment income was negatively impacted by challenging market conditions for cannabis-related businesses. During the quarter, headwinds were seen across much of the cannabis sector, resulting in flat to slightly decreased sales. Factors affecting sales included pricing pressures, excess supply and increased competition as new states continue to legalize. Despite these challenges, which specific to Safe Harbor included lower deposit activity, we managed to increase net income and cash flow. One additional factor impacting Cannabis sales that is highly controversial is the emerging market of CBD and THC derivatives from HEP. These are not regulated at the state level, but rather under the Temp Farm Bill. While it is a new market and Safe Harbor continue to determine if it is a market into which we can expand, the lack of regulation makes providing compliant financial services to the health industry a higher risk. The cannabis market continues to grow with 24 states non-legalizing adult use and 38 states legalizing medicinal use. In 2023, Delaware, Minnesota and Mayo legalized adult-use cannabis with the increased market size being realized in 2024. The continued legalization of adult-use cannabis at the state level is good for our business model, allowing for additional national growth. We continue to focus on new markets as they ramp up to assist early licensees with their financial needs. Legalization at the state level is one thing, but the implementation of a legal market certainly lags legalization. According to an industry report from Grand View Research, the cannabis market size is expected to reach $33.6 billion in 2024 with a CAGR growth rate of 12.1% from 2024 through 2030. We believe Safe Harbor is well positioned to continue to take advantage of expected market growth year-over-year. Safe Harbor is making competitive changes that we believe will make us more attractive to incoming cannabis entities. One of the initiatives responsible for this positive activity is that we started to raise or reduce fees with other internal programs that operators may choose to neutralize such fees ranging from minimum balances to ATM placement programs. We are able to lead with competitive pricing as we continue to see lending income compensate for decreased depository revenue. In the long run, the programs in place, we believe, will replace and even increase the income loss due to the programs. Subsequent to the end of third quarter, we originated a new $1.07 million secured credit facility for a Missouri-based cannabis operator. The facility is secured by a portfolio that includes 4 retail dispensaries and a manufacturing facility in Missouri. And this is the first tranche of a $5 million commitment to refinance existing senior debt. The refinancing reduces the operator’s borrowing cost and will enable them to optimize their operations within the state’s growing cannabis market. This is an example of executing on our strategy to offer cannabis operators access to capital with competitive pricing in our evolving industry. It also grows our credit portfolio further delivering value to investors. Throughout our history, Safe Harbor has shown its commitment to a more inclusive and equitable cannabis industry by supporting the development and growth of minority-owned small businesses and entrepreneurs from underserved communities. In July, we announced a new partnership with BIPOCann, a Denver-based consulting firm dedicated to aiding social equity and minority entrepreneurs in the cannabis sector. Under this partnership, BIPOCann, will offer its full suite of membership benefits valued at $600 to all existing Safe Harbor social equity clients at no additional cost. Additionally, BIPOCann, members will receive a 75% discount on application fees for financial services complementing Safe Harbor’s existing social equity discount program by providing these businesses with access to reliable financial services and resources Safe Harbor and BIPOCann aims to create a more inclusive and equitable cannabis industry. Before handing over to Jim to review our financial results, I will speak briefly on the recent election results as well as the upcoming hearing on reclassification. With the election now behind us and President-elect Trump coming back to the White House in January, we hope that both sides can find middle ground and support cannabis-related businesses. While President-elect Trump has stated that he will leave it up to the states to decide on whether cannabis should be legalized, we are confident that he sees the opportunity for this industry through job creation and additional potential revenue streams. We are looking forward to 2025 and beyond for the potential opportunities for the cannabis industry. As we have previously said, we believe rescheduling cannabis from Schedule I to Schedule III be a positive for our industry in several ways, and we will know more soon as the DEA has scheduled a December 2 hearing to review expert opinions on the proposed scheduling of cannabis. As you likely know, reclassification will reduce tax burdens under Section 2AE, which has the potential to strengthen the balance sheet of our customers as well as our balance sheet. Reclassification would also help level the playing field for cannabis businesses relative to other sectors. As the first mover in our industry, Safe Harbor is well positioned to capitalize on the evolution of the regulatory environment. We view these developments as positive steps towards Federal cannabis reform, and Safe Harbor is monitoring this closely. To recap, we are concentrating our efforts to expand the growth of our customer base, continue to deliver best-in-class service and develop innovative offerings, all of which we are confident will result higher capacity for lending. Our near-term growth strategy remains to acquire account portfolios from banks looking to exit the business as well as expanding our deposit base and adapting our platform to meet demand of CRDs. Furthermore, we are striving to be more competitive with our pricing structure by weighted needs on higher balances. As we continue to execute on our business strategy, we remain focused on driving our bottom line by looking at generating additional revenue streams while decreasing overall expenses. I would now like to hand the call over to Jim to discuss our financial results for third quarter ended September 30, 2024. Jim?

Thanks Sundie and good afternoon everyone. For the three months ended September 30, 2024, Safe Harbor reported revenue of $3.5 million, down 19.6% from $4.3 million in the comparable prior year period. For the nine months ended September 30, 2024, Safe Harbor reported total revenue of $11.6 million, a decrease of 11.6% from $13.1 million for the comparable prior year period. In the third quarter of 2024, revenue for deposit activity and onboarding was $1.6 million, a decrease of 26% versus the comparable prior year period. And for the nine months ended September 30, 2024, revenue for deposit activity and onboarding revenue was $4.9 million, a decrease of more than 29.6% versus the comparable prior year period. Revenue earned in the three months ended December 30, 2024, for investment income was $475,000, a decrease of approximately 60% versus the comparable prior year period. And for the nine months ended September 30, 2024, investment income was $1.75 million, a decrease of 56.5% versus the comparable prior year period. In the third quarter, loan interest income grew 48% versus the comparable prior year period to $1.3 million. And for the nine months ended September 30, 2024, loan interest income grew 143.5% versus the comparable prior year period to $4.8 million. Moving down the income statement, for the three months ended September 30, 2024, total operating expenses were $3.3 million compared to $3.8 million for the comparable prior year period. The decrease in operating expenses was largely driven by decreases in compensation and employee benefit expense and decreases in general and administrative expenses. For the nine months ended September 30, 2024, total operating expenses were $10.8 million versus $32.1 million in the prior year period. Operating expenses for the nine months ended September 30, 2023, included an impairment charge of $16.9 million. Excluding the impairment charges, total operating expenses for the nine months ended September 30, 2023, were $15.2 million. When excluding the impairment charges taken in 2023, for the nine months ended September 30, 2024, the business reduced expenses by approximately $4.4 million for the period ending September 30, 2024, versus the comparable prior year period. Net income in the third quarter of 2024 was $354,000 compared to a net loss of $748,000 in the comparable prior year period. And for the nine months ended September 30, 2024, the company reported net income of $3.3 million versus a net loss of $19.8 million for the nine months ended September 30, 2023. 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 compute an adjusted EBITDA, which management believes is a better 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. Adjusted EBITDA for the quarter ended September 30, 2024, was $764,000 versus $1.05 million in the comparable prior year period. And for the nine months ended September 30, 2024, the company reported adjusted EBITDA of $2.8 million versus $2.3 million in the comparable prior year nine months ended September 30, 2023. Moving to the balance sheet, at September 30, 2024, the company reported cash and cash equivalents of $5.9 million compared to $4.9 million at December 31, 2023. Cash provided by operating activities through the third quarter of 2024 was $3.2 million compared to cash used in operating activities of $225,000 in the comparable prior year period. Turning to our liquidity, the company reported a net working capital deficit on September 30, 2024, of $2.5 million versus a deficit of $135,000 at December 31, 2023. Our working capital deficit of $2.5 million includes $7.3 million recorded for the forward purchase liability, which may be paid in common stock to the company. Excluding the liability that may be paid in common stock versus cash, the company would have a positive working capital of approximately $4.8 million. Looking ahead to the balance of 2024, we expect to report full year revenue for 2024 in the range of $15 million to $15.5 million. I would now like to turn the call over to the operator for question-and-answer session.

Thank you all for joining us on today’s call and thank you to our investors for their continued support. We look forward to updating you on our year-end 2024 call in March. I will now ask the operator to close the line.

Thank you all for joining on today’s call and thank you for our investors for their continuous support. We will look forward to updating you on our year end 2024 call in March. You may disconnect.

Ladies and gentlemen, thank you for standing by. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Safe Harbor Financial Second Quarter 2024 Earnings Conference Call. [Operator Instructions]. Thank you. And I would now like to turn the conference over to Mr. Phil Carlson of KCSA. You may begin.

Hello, everyone, and welcome to the Second Quarter 2024 Earnings Conference Call for SHF Holdings, Inc. doing business as Safe Harbor Financial which we will refer to as Safe Harbor or the company throughout the duration of the presentation. Before we start, I would like to remind everyone that certain comments made on this call include forward-looking statements, which are subject to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to the company's outlook and the company's expectations regarding its market opportunities and other financial operational matters. These forward-looking statements 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 of future performance. 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. The forward-looking statements on this call will speak only as of today's date, and the company undertakes no obligation to update or revise any of these statements. 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 our filed 10-Q as well as today's earnings press release, which you can find in the company's Investor Relations website or on the SEC website. All dollar amounts expressed today are in US currency. Presenting today will be Sundie Seefried, Chief Executive Officer; and Jim Dennedy, Chief Financial Officer of Safe Harbor. I will now turn the call over to Sundie. Sundie, please go ahead.

Thank you, Phil, and welcome, everyone, to our second-quarter 2024 earnings call. During the second quarter of 2024, we continue to solidify Safe Harbor's position as a leading financial services provider for cannabis-related businesses, continuing to diversify our income streams, improve loan capacity and portfolio quality as well as enhance our product offering. For the past 10 years, we have shaped our financial services platform to change in response to the cannabis regulatory landscape. The results we achieved in quarter two demonstrate that our business model has allowed us to operate efficiently with an improved revenue mix and higher interest income. In particular, for the quarter, we generated positive net income and gross profit. We also reduced operating expenses by almost 84% compared to the same period last year. Also important to note, loan interest income for the second quarter 2024 was up approximately 204% year-over-year to approximately $1.8 million. Before Jim dives deeper into the financials, I want to recap some recent highlights. In June, we successfully announced additional lines of credit issued, originating $550,000 for three long-standing Colorado cannabis clients. This strategic move exemplifies our firm commitment to supporting the capital requirements of the cannabis industry and addresses the growing demand from small and midsized cannabis businesses, a segment often underserved by traditional financial institutions. Our program offers normalized non-creditor rates without required real estate collateral. We believe that this expansion of our lending platform could not only diversify our revenue streams but also strengthen our position as a financial services provider in the cannabis industry. By filling this gap in the market, we believe that we're driving growth, enhancing client relationships and solidifying Safe Harbor's market leadership. We anticipate this program will contribute positively to our bottom line while supporting the broader cannabis ecosystem. In July, we announced that we had successfully exited a $3.1 million defaulted loan, originated in 2021 and secured by Class A industrial real estate in Denver. The successful exit was facilitated by the property's strong fundamentals, demonstrating the strength of Safe Harbor's underwriting process. In exiting this loan, we recovered the full principal plus over $200,000 in accrued interest, which will be reinvested into lending and credit line capacity. This was the only nonperforming loan in the company's history and its full recovery validates Safe Harbor's balanced lending approach. In addition, the outcome improves our overall loan portfolio quality and increases our lending capacity. I would also like to address the possibility of cannabis reclassification which we believe would be a significant growth catalyst for the industry. Ahead of the July 22 deadline, we submitted comments to the Justice Department regarding the proposal to reclassify cannabis from Schedule 1 to Schedule 3 of the Controlled Substances Act. Over 42,000 comments were submitted with almost 93% of those comments in favor of changing cannabis schedule and 61% calling for a complete de-scheduling of cannabis, while the proposed page of rescheduled cannabis from Schedule 1 to Schedule 3 would legalize cannabis or alter BSA and AML compliance requirements. It would represent significant progress for the industry. The reclassification would likely alleviate tax burdens under Section 280E, potentially strengthening our clients' balance sheet and income statements. We anticipate this change would create a more favorable business environment, enabling expansion of services and new market opportunities. The prospect of rescheduling cannabis could help level the playing field for cannabis businesses. Without the constraints of 280E, the Internal Revenue Code Provision that prohibits businesses, viewing with Schedule 1 substances from writing off business expenses on their federal tax returns, these businesses would potentially be able to produce stronger financial returns increasing our ability to qualify them for more lending options, improve debt service coverage, and we believe increase our deposit balances. The benefits to the industry's financial strength rolled up to the favor of Safe Harbor. Importantly, this development underscores Safe Harbor's continued relevance in the Kansas financial services sector. Our first-mover status and deep industry expertise position us uniquely to capitalize on the evolving regulatory landscape. With the growth of the cannabis industry, we believe that the need for our unique service platform would increase considerably, and we would remain a crucial partner for cannabis and other high-risk banking businesses. We believe our creative and methodical approach in building the company's platform has enabled national business scaling. The platform's policies, training, monitoring and processes are all well established and supported by expert talent. We anticipate this combination of intellectual property plus human capital talent will provide a competitive advantage as we focus on continued growth. Looking ahead, Safe Harbor will continue to lead with lending and further commend our unique position in the cannabis financial services market. We are just one of a handful of financial service providers capable of providing CRB with access to compliant deposit tools and traditional lending. We remain committed to supporting the cannabis industry through regulatory change and as the regulation evolves, we are well-positioned to capitalize on these changes. With our unique service offerings and product suite, we believe new lending opportunities will continue to drive organic deposit growth. As we have seen traditional financial institutions are either unable or unwilling to replicate our business model due to its complexity and difficulty to execute. Certainly, our attention remains on growing the business with a focus on increasing our client deposit base attracting newly legalized markets continuing to seek exiting financial institutions and expand lending opportunities. With our ability to serve large MSOs in every legal market across the country, as well as our continued pursuit to roll out additional service offerings, we believe we are well-positioned for future growth. I'd now like to hand the call over to Jim to discuss our financial results for the quarter and six months ended June 30, 2024. Jim?

Thank you, Sundie, and good afternoon, everyone. Our second quarter 2024 total revenue was $4 million, down approximately 12% from total revenue of $4.6 million in the comparable prior year period. And for the six months ending June 30, 2024, total revenue was $8.1 million, down approximately 7.6% from total revenue of $8.8 million in the comparable prior year period. The decrease in total revenue was driven by lower interest income and lower deposit activity and onboarding income, offset by substantially higher loan interest income. The number of active accounts and the aggregate deposit balances of the active account holders at the end of the quarter of 2024, were lower by approximately 33% versus the prior year period. Notwithstanding the fewer accounts and lower balances, the volume of account activity per account was higher in our second quarter of 2024 versus the comparable prior year period. Additionally, loan interest income was up by more than 204% in the period ending June 30, 2024, versus the prior year period. Moving down the income statement. Operating expenses in the second quarter of 2024 were approximately $3.7 million versus operating expenses in the second quarter of 2023 of $22.5 million. Recall that the company incurred significant impairment charges to goodwill and long-lived intangible assets in the second quarter of 2023. After removing these one-time noncash expenses, operating expenses for the second quarter of 2023 were $5.6 million. The lower operating expenses in the second quarter of 2024 versus the second quarter of 2023 were primarily attributable to lower stock compensation expense and lower consulting and professional services-related expenses. Consequently, net income reported in the second quarter of 2024 was $942,000 compared to a net loss of $17.6 million in the prior year period. And for the six months ending June 30, 2024, the company repeat net income of $3 million versus a net loss of $19 million in the same prior year period. When adjusting net income for interest, taxes and depreciation and amortization expense and further adjustments to exclude noncash, unusual and or infrequent costs, we compute in 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 current report 8-K filed with the SEC earlier today. Adjusted EBITDA for the quarter ending June 30, 2021, was approximately $974,000 versus $850,000 in the comparable prior year period. And for the six months ending June 30, 2024, the company reported adjusted EBITDA of approximately $2.1 million versus $1.3 million for the first half of 2023. Moving to the balance sheet. As of June 30, 2024, the company reported cash and cash equivalents of $6.1 million compared to $4.9 million at December 31, 2023. Cash provided by operating activities through the second quarter of 2024 was $2.7 million versus cash used by operating activities of approximately $965,000 and in a comparable prior year period. This improvement was mainly due to previously cited lower operating expenses in 2024 versus the prior year period. Turning to our liquidity. The company reported a net working capital on June 30, 2024, of approximately $302,000 versus a net working capital deficit of $135,000 on December 31, 2023. Looking ahead to the balance of 2024, we expect to report full-year revenue for 2024 in the range of $17 million to $18 million and full-year adjusted EBITDA in the range of $3.75 million to $4.25 million. With that, I will now turn the call back to the operator to open the call for questions. Operator?

[Operator Instructions].

And with no questions at this time, I would actually like to turn the conference back over to Sundie Seefried for any additional or closing remarks.

Thank you. I would like to thank you all for joining us on today's call and for your support for Safe Harbor Financial. We are grateful to our investors as we continue to grow our innovative financial services platform during this exciting time. I will now ask the operator to close the line.

And ladies and gentlemen, this concludes today's call, and we thank you for your participation. You may now disconnect.

Thank you for standing by. My name is Benjamin, and I will be your conference operator today. At this time, I would like to welcome everyone to Safe Harbor Financial First Quarter 2024 Earnings Call. [Operator Instructions] I would like to turn the call over to Erika Kay. Please go ahead.

Thank you. Good afternoon, everyone, and welcome to the First Quarter 2024 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 its market opportunities and other financial operational matters. 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. 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, including the company's annual report on Form 10-K for the year ended December 31, 2023, as well as limitation factors included in the forward-looking statements in the company's annual report on Form 10-K for the year ended December 31, 2023, which are available at www.sec.gov or on our website at ir.shfinancial.org. The forward-looking statements in this call speak only as of today's date, and the company undertakes no obligation to update or revise any of these statement. Also, during the call, Safe Harbor will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures was included in today's earnings press release, which you can find on the company's Investor Relations website or on the SEC website. Finally, the content of this call may contain time-sensitive information accurate only as of today, May 13, 2024. SHF Holdings, Inc., undertakes no obligation to revise or otherwise update any statements to reflect events or circumstances other than the date of this call. All dollar amounts expressed today are in U.S. currency. Presenting today will be Sundie Seefried, Chief Executive Officer; and Jim Dennedy, Chief Financial Officer of Safe Harbor. I'll now hand the call over to Sundie. Sundie, please go ahead.

Thank you, Erika, and welcome to our first quarter 2024 earnings call. We entered 2024 with our most expansive suite of financial compliance products and services in place. In the first quarter, we specifically focused on advancing newer lines of business as we continue to drive more diversified income streams and enhance our position as a premier financial services provider for cannabis-related businesses or CRBs across the country. It is important to understand the significance of our lending program in the context of the obstacle CRBs continue to face even with regulatory changes in motion, when trying to gain access to capital to grow their businesses. Traditional banks and credit unions remain hesitant to engage in cannabis financing due to the industry's complex structure. And if they do participate, loans often carry high interest rates with less favorable terms compared to loans provided to businesses and other sectors. Given our success in serving over 750 clients through our proven compliant cannabis finance infrastructure and facilitating over $22 billion in deposits across 41 states since our inception in 2015, incorporating lending into our platform was a natural extension for the business. Safe Harbor is one of just a handful of financial service providers capable of providing CRBs access to compliant deposit tools and traditional lending. Our results in the first quarter demonstrate the success we have achieved in developing this high-margin business channel to further enhance our competitive position. To provide some perspective on growth of our lending program since it was first introduced in 2022, it is important to understand how our revenue composition has evolved over the past year. Given our success working with financial institutions to onboard, monitor and ensure compliance with CRB funds, we accrued a strong deposit base from which to lend. To address our clients' increased requirements for growth capital, we have worked closely with our financial partners to lend against deposits. Increased deposits result in higher lending capacity. Given Safe Harbor's unique lending capabilities, we believe new lending opportunities will help drive strong organic deposit growth. When we began ramping up our lending program in Q1 2023, loan interest income was a nominal percentage of our business at approximately 11%. At the end of Q1 2024, the value of our loan book nearly tripled year-over-year and loan income represented just over 40% of revenue in the quarter. The results clearly demonstrate market acceptance of this truly unique capability and support our goal of creating a more diversified income stream. Our business model centers on leveraging our experience in cannabis finance and our proprietary and compliant fintech platform to create a one-stop shop financial service center for cannabis businesses across the country. By expanding our product and service offerings, we have proven our ability to scale and differentiate safe harbor from competition, which experienced high barriers to entry in providing the same array of services due to the high level of compliance, oversight and monitoring required. Today, we are less reliant on our depository fees to drive our growth. We are now operating multiple synergistic business channels with increasing income being derived from loan interest, lending fees and investment income. As a result, I am pleased to report that in the first quarter of 2024, our loan income increased 250% year-over-year to $1.6 million in the first quarter of 2024 compared to $466,000 in the comparable period of 2023. As I mentioned during our Q4 2023 call, our deposit base has decreased due to the July 2023 termination of our master services and revenue sharing agreement with Central Bank in Arkansas. As a result, our total number of client accounts dropped from 1,040 as of March 31, 2023, to 757 as of March 31, 2024, which negatively impacted our quarterly depository fees. For the first quarter of 2024, these fees decreased 28% to $1.62 million compared to $2.25 million in the first quarter of 2023. A decrease in depository fees does not surprise us due to the present market and need to increase deposits at all financial institutions. We anticipated this change in the market and remain competitive with our pricing to continue to retain and attract new clients. Our primary focus is to continue to attract lending opportunities, which in turn create relationships with businesses in the long term. We believe the key takeaway from our first quarter results is our ability to provide our customer base with additional value-added products and services such as our high-margin lending program, where we believe we will remain at the forefront of the cannabis finance industry. In addition, with a greater array of financial tools now available for our platform, we are positioned to capture new customers and in turn, add new deposit accounts. We will lead with lending as more and more financial institutions with [ handful ] Bank balances look to Safe Harbor to support the additional banking needs of these cannabis businesses. Many of these financial institutions do not want to attempt to replicate our model as it has proven extremely difficult to execute. Our near-term growth strategy is to acquire portfolios from banks looking to exit the business, increase our deposit base and further leverage our platform to meet the demands of CRBs across the country. With the rollout of more and more deposit and credit tools along with our ability to serve large multistate operators or MSOs, in every legal market across the country, we are strategically positioned for growth. For example, with the launch of our interest-bearing commercial deposit accounts in 2023, more and more CRBs are recognizing the breadth of our service offering. It is also important to note that our business fundamentals remain strong, resulting in continued improvement to our bottom line. We impactfully reduced our total operating expense by over 36% to $3.73 million in the first quarter of 2024 compared to $5.8 million in the first quarter of 2023. These improvements improved operating efficiency to deliver positive net operating margins. Before I turn the call over to Jim to discuss our first quarter results, I would like to discuss the incredible step forward made recently and by legitimizing the cannabis industry with the proposed rescheduling of cannabis from Schedule 1 substance to a Schedule 3 substance. And what this means for our industry's growth as well as Safe Harbors. We believe the rescheduling of cannabis will be a significant catalyst for the industry, leading to greater access to traditional financing channels that has far too long been inaccessible. The prospect of rescheduling cannabis would go a long way and evening the playing field for our cannabis businesses. Without the constraints of Section 280E, the internal resi code, which prohibits businesses dealing with Schedule 1 substances from writing off business expenses on their federal tax returns, these businesses can deliver much stronger financial returns. In the near term, we believe the potential of rescheduling will attract more capital to the industry, allowing for greater growth and financial stability. And in fact, these businesses will have more money to deposit into their bank accounts, which potentially lead to greater lending opportunities for Safe Harbor. The rescheduling of cannabis would be a huge win for the cannabis industry, including Safe Harbor. As more financial institutions open their doors to cannabis businesses, we expect the demand for our services to support these businesses will dramatically increase. Issues with payment networks will unfortunately continue to exist, leading the industry predominantly cash-intensive in addition to the fact that cannabis will remain under the Controlled Substance Act. Another catalyst for the industry's growth is the SAFER Banking Act, which will allow state legal cannabis businesses to transition from being primarily cash-based operations and allow the industry participants to gain greater access to traditional financial institutions. While this act is moving closer to becoming law, it does not eliminate the need to meet the compliance and oversight requirements of the Bank Secrecy Act, or BSA. Most financial institutions are either unable or unwilling to undertake the compliance management needed to process these funds. Therefore, we view the SAFER Banking Act as a neutral event for Safe Harbor, given the continued need to navigate the BSA. It is becoming increasingly important to ensure new businesses entering the market are properly processed and managed. Over the past 10 years, we have tailored our fintech platform to expand with the evolving cannabis regulatory landscape. Our ability to streamline operations and ensure proper compliance is unmatched. The cannabis industry remains complex and will continue to change. We pride ourselves and our unique capability to consistently deliver trusted financial services to the cannabis entrepreneurs nationwide. I'd now like to turn the call over to Jim to discuss our financial results for the quarter ended March 31, 2024. Jim?

Thanks, Sundie, and good afternoon, everyone. Total revenue in the first quarter of 2024 was $4.1 million compared to $4.2 million in the prior year period, primarily attributable to a decrease in investment income and deposit activity and onboarding income. This decrease was a result of fewer accounts being opened and lower deposit balances in the current period versus the prior year period. The decline in these 2 revenue streams was offset by a substantial increase in loan interest income by more than 250% in the current period to $1.6 million versus the prior year period of $466,000. Operating expense in the first quarter of 2024 decreased by more than 35% to $3.7 million compared to $5.8 million in the prior year period. The lower operating expenses in the first quarter were, primarily driven by significantly lower compensation and employee benefit expense, including stock-based compensation expense, lower advertising and marketing expense and lower general and administrative expenses. The company reported net income in the first quarter of 2024 of nearly $2 million versus a net loss of $1.4 million in the prior year period, primarily due to the company generating positive operating income during the first quarter of 2024 and favorable changes to the fair value of our warrant liability and the fair value of deferred consideration owed to the Abaca shareholders. When adjusting the net income for interest, taxes and depreciation and amortization expense and further adjustments to exclude noncash, unusual and/or infrequent costs, we compute an adjusted EBITDA, which management believes is an important measure to evaluate our operating performance. A reconciliation of net income to adjusted EBITDA is provided in the press release and current report on Form 8-K filed earlier today. Adjusted EBITDA for the quarter ending March 31, 2024, was $1 million versus $409,000 in the prior year period. Moving to the balance sheet. At March 31, 2024, the company reported cash and cash equivalents of $5.6 million compared to $4.9 million at December 31, 2023. Cash generated by operating activities in the first quarter of 2024 was $1.4 million versus $232,000 of cash used by operations during the same period in 2023. The improvements in cash flow was mainly due to a decrease in operating expenses. Turning to our liquidity. Our net working capital in the first quarter of 2024 improved to just short of $318,000 versus a working capital deficit of $135,000 reported at December 31, 2023. The improvement in our working capital is primarily attributable to lower operating expense and a greater number of performing loans at better rates than at year-end. Looking ahead to the full year for 2024, we expect to generate slightly better adjusted EBITDA on modestly higher revenue compared to our full year of 2023, which reported $3.6 million of adjusted EBITDA on $17.6 million of total revenue. The reconciliation of adjusted EBITDA to GAAP net income for the full year of 2023 was provided in the Form 10-K for 2023 filed with the Securities and Exchange Commission on March 25, 2024. We will provide updates to this guidance in subsequent earnings call throughout the year. With that, I will now turn the call back to the operator to open the call for questions.

[Operator Instructions] And there being no questions in the queue. This concludes today's conference call. Thank you for participating. You may now disconnect.

Good afternoon and welcome to the Safe Harbor Financial Q4 2023 Earnings Call. Please note that this call is being recorded. All participants are now in listen-only mode. After the speakers’ remarks there will be a question and answer session. [Operator Instructions]. I will now turn the call over to Erika Kay, you may begin your conference.

Thank you. Good afternoon, everyone, and welcome to the Fourth Quarter and Full Year 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 its market opportunities and other financial operational matters. 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. 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. The 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 statements. 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. All dollar amounts expressed today are in U.S. currency. Presenting today will be Sundie Seefried, Chief Executive Officer; and Jim Dennedy, Chief Financial Officer of Safe Harbor. I'll now hand the call over to Sundie. Sundie, please go ahead.

Thank you, Erika, and welcome to our 2023 yearend earnings call. 2023 was another strong year of financial growth for Safe Harbor with record revenue of $17.56 million, an increase of 85.3%, up from $9.48 million in 2022. In addition to our continued year-over-year growth, we have impactfully elevated our position as a one-stop financial service center for cannabis related businesses across the country, building an expansive compliant financial products and services. I am also pleased to report that we have reached a point in our evolution where we have optimized our fintech platform to deliver multiple high margin revenue streams that are expected to contribute meaningfully to our growth going forward. By successfully scaling our platform with new credit and deposit tools, we have continued to differentiate Safe Harbor from our peers, further demonstrating the underlying value of our expertise and experience in this complex segments of the finance industry. To better understand our unique market position and capabilities, it's important to understand the role we play as a trusted intermediary between CRBs and financial institutions. Safe Harbor’s compliant cannabis infrastructure intuitively interfaces with each of our financial institution partners to seamlessly manage financial transactions ensuring the highest level of oversight, validation and compliance. By eliminating the risk of serving the cash-intensive cannabis industry without interruption and [Indiscernible] here Safe Harbor has established itself as a critical component of the financial transaction process and more importantly, our fintech platform have to become a gateway to introducing additional banking solutions to the cannabis industry. The core driver of our business is customer deposit activity, which since 2015 has facilitated over $21.5 billion in deposits across 41 states. For 2023, our goal was to facilitate $4 billion in deposits. In 2023, we facilitated approximately $4.2 billion in deposits representing an increase of approximately 16.67% compared to the $3.6 billion we reported in 2022. For the full year 2023, as compared to the full year 2022, revenue increased 85.3% consisting primarily in key components as follows: deposit and onboarding income increased by 42%, investment income increased by 175.6% and loan interest income increased by 163% with the loan book increasing 194%. Jim will provide additional detail on these three revenue components in his review of the fourth quarter and yearend financials. The strength of these results is extremely impressive, especially when taking into account the July 2023 termination of our master services and revenue sharing agreement with Central Bank. As a result, our total number of clients decreased from 1,040 as of March 30th, 2023 to 721 as of December 31st 2023. The effect of the account losses on deposit related fees were first recognized in quarter four 2023. Please note that we are actively engaged with potential new financial partners eager to enter the high growth cannabis banking industry. Against this challenging backdrop, Safe Harbor continued to deliver strong results, a testament to our ability to diversify the business, launch additional fee generating products and services, which collectively has allowed us to increase our business activity with our valued customer base. For example, the average monthly fee revenue per account increased 35% year-over-year to $8,298, up from $6,154 for the same period in 2022. In addition, our average per account balance for the full year 2023 was $219,835 to $215, 269 in 2022. The growth in monthly sheen revenue is a function of high business volume, albeit on a smaller account and deposit base which is happening across the entire banking sector. Even though deposits are down, the velocity of money turning through the system is increasing. Our revenues have historically been driven by depository fees which are composed of deposits onboarding, compliance, monitoring and validation fees. However, with the addition of new service offerings, our recent financial results represents a more diversified income stream, which resulted in a strong total revenue growth for fourth quarter and the full year 2023. The diversification of our income streams has allowed us to remain competitive given the fact that most of our competitors are incapable of diversifying their income especially with lending. Our proven ability to add new revenue streams including lending, new credit, and deposit offerings, as well as investment income represent key areas of differentiation for safe Harbor. As we leverage our expertise to lead the evolving cannabis finance industry and scale our operations to meet increasing demand, we are seeing other financial institutions desiring to exit the market as they do not have our capabilities nor are they solely focused on this market segment. Our team is fully dedicated to cannabis financial services, which furthers our competitive edge and high-level competency in our business. Our interests are not divided and this is a key competitive advantage undistracted by other markets requiring banking services. Safe Harbor’s ability to offer highly competitive rates on loans to new customers along with the opportunity to provide additional lending services to our established long-term customer base allowed us to increase the size of our loan book to $55.66 million at the end of December 31st, 2023. This compares to a loan book of $18.9 million at the end of December 31, 2022, representing a significant increase of 194% year-over-year. As a result of higher loan activity, we have steadily increased our loan income creating a powerful new high margin revenue channel for Safe Harbor. Total loan interest income from 2023 was $2.97 million, representing an increase of 163%, up from $1.13 million in 2022. Further supporting our financial and operational growth last year was the introduction of an expanded line of deposit and credit tools that has allowed us to further optimize our deposit base. In July 2023, we launched the first interest-bearing commercial deposit account broadly available to cannabis businesses nationwide, providing depositors with the opportunity to earn interest income with no maximum balance limitation. In September 2023, we introduced a new line of credit product to support cannabis enterprises who historically have faced difficulty obtaining debt financing at reasonable terms. Our investment income correlates directly with deposit base and loan book as our financial institution partners collect interest on loans and deposits, in line with our increased account activity we recognized and increased and invest in income with investment income increasing 175.6% to $5.84 million in 2023, up from $2.12 million in 2022. The fact that we have achieved strong financial growth in 2023 while facing market headwinds due to slowed industry growth and increased competition, along with the loss of deposit accounts from the termination of our partnership with Central Bank speak to the value to the strength of our business model. While it remains our goal to increase our deposit base with more active accounts to grow our investment income and facilitate greater lending opportunities, it is just as important to strengthen our fintech platform with more sophisticated products and services to create additional revenue channels and improved margins. We have several opportunities throughout the remainder of 2024 that we expect to lead to increase in both our deposit activity and number of accounts. We are also very optimistic about our continued growth in 2024 and beyond as we continue to see increasing efforts to loosen restrictions on cannabis invaded businesses with the advancement of the Safer Banking Act and reclassifying cannabis to a schedule III drug, as more and more cannabis-related businesses advance opportunities to expand their operations and enter new markets, we believe our expertise in streamlining operations and for [Indiscernible] in compliance management will continue to set us apart placing us at the forefront of an even larger market. By consolidating accounts of greater size, our clients can take advantage of optimizing efficiencies and navigating the BSA, which will be continued obstacles even with regulatory changes. The BSA requires maintaining rigorous compliance standards, which are crucial to uphold. I'd like to now turn the call over to Jim to discuss our financial results for the year ended December 31, 2023. Jim?

Thanks, Sundie, and good afternoon, everyone. For the fourth quarter of 2023, total revenue increased more than 25% to $4.5 million, compared to $3.6 million in the same period last year. The results for the fourth quarter of 2023 included incremental revenue of $549,000, resulting from a strategic shift that occurred in the fourth quarter of 2023 related to how we apply earned interest to the aggregate average daily balance of our client deposits. This methodology was applied retroactively at the beginning of 2023 with the incremental revenue recognized in the fourth quarter of 2023. For the full year ended December 31, 2023, total revenue increased 85% to $17.6 million, compared to 9.5 million in 2022. As Sundie previously mentioned in her comments, investment income increased by 176% to $5.84 million in 2023 versus the $2.1 million reported in 2022. Loan interest income increased by 163% to $2.97 million in 2023, versus the $1.13 million reported in the prior year and deposits activity and onboarding income increased by 42% to $8.6 million in 2023 versus $6.1 million reported in 2022. Operating expense in the fourth quarter of 2023 decreased by approximately 17% to $6.2 million, compared to $7.4 million in the comparable prior year period. Lower operating expenses in the fourth quarter were primarily the result of lower compensation-related expenses, as well as lower professional services and consulting-related expenses. This was offset by a $2 million charge for impairment of developed technology taken in the fourth quarter of 2024. For the full year ended December 31, 2023, total operating expense increased to $38.3 million versus $11.7 million in 2022. The increased operating expense versus 2022 was attributable to goodwill and other impairment charges from the second quarter of 2023 related to the Abaca transaction and impairment charge to develop technology taken in the fourth quarter of 2023 also related to the Abaca transaction. Expenses related to a restructuring of the Abaca transaction consideration completed in the fourth quarter of 2023 and stock-based compensation expense. The company reported $2.5 million of net income in the fourth quarter of 2023 versus a loss of $37 million in the prior year period. The driver of the net income produced in the fourth quarter was attributable to the previously mentioned additional investment income captured in the fourth quarter. For the full year of 2023, the company reported a net loss of $17.3 million versus a net loss of $35 million in 2022. The net loss reported for the full year was primarily attributable to the impairment of long lived assets and Goodwill, higher compensation expense and Abaca consideration restructuring charges. 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 compute an adjusted EBITDA, which management believes provides an accurate measure to evaluate our operating performance. A reconciliation of net income to adjusted EBITDA is provided in the press release and 10-K filed earlier today. Adjusted EBITDA for the year ended December 31, 2023 was $3.6 million versus $1.3 million in 2022. Turning to the balance sheet, as of December 31, 2023, the company reported cash and cash equivalents of $4.9 million, compared to $8.4 million at December 31, 2022. Cash used in operations for 2023 was $832,000 versus cash provided by operations in 2022 of $1.7 million. While the company reported higher operating expenses in 2023 from being a separate standalone public company versus our 2022 results, the company managed to consistently reduce its core operating expenses throughout 2023, while also significantly growing the business. Turning now to our liquidity, while the company reported $4.9 million of cash as a December 31, 2023, the company reported a net working capital deficit of $135,000. This is a significant improvement over the working capital deficit of $39.3 million reported at the end of 2022. The driver of the current working capital deficit is the current portion of the senior secured note of the partner Colorado Credit Union and the deferred consideration owed to Abacus shareholders due in November of 2024. We expect to reverse the working capital deficit anticipates reporting positive working capital in the ensuing quarters of 2024. We are pleased with the results for the quarter and the year and the progress we are making across many aspects of the business and initiatives to remain the dominant financial services provider to the legal cannabis industry. With that I will now turn the call back to the operator to open the call for questions.

Seeing no questions in queue, I will now turn the call back to Sundie Seefried for any closing remarks.

I would like to thank everyone again for joining us on today's call and for your continued interest in Safe Harbor Financial. We have proven the strengths and value of our business model. Now given our strong financial institution, no partnership network, which continues to grow and our success in advancing new growth initiatives to meet the needs of states cannabis industry participants, we believe we are on a strong path for continued results. We look forward to updating with you on our continued progress on our next quarterly conference call. Thank you and have a great day.

This concludes today's conference. Thank you for joining us and you may now disconnect.

Good afternoon. My name is Krista, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Safe Harbor Financial Third Quarter 2023 Earnings Call. [Operator Instructions]. I will now turn the conference over to Erika Kay, Vice President. Erika, you may begin your conference.

Thank you. Good afternoon, everyone, and welcome to the Third 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 its market opportunities and other financial operational matters. 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. 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. The 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 statements. 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 available on Safe Harbor's Investor Relations website. All dollar amounts expressed today are in U.S. currency. Presenting today will be Sundie Seefried, Chief Executive Officer; and Jim Dennedy, Chief Financial Officer of Safe Harbor. I'll now hand the call over to Sundie. Sundie, please go ahead.

Thank you, Erika, and welcome to our 2023 Third Quarter Earnings Call. This is a very exciting time for Safe Harbor as we continue to advance new growth opportunities to scale our compliant cannabis finance infrastructure with the introduction of new deposit and credit tools for cannabis-related businesses or CRBs. Our third quarter results speak to the strength of our fintech platform as it continues to support the cannabis industry with access to these financial services while driving new high-margin revenue streams for Safe Harbor. Since going public in September 2022, Safe Harbor has demonstrated consistently strong financial results by executing a differentiated business model. However, it is important for the investment community to understand the structure of our key revenue segments. We earn income in the performance of primary business activities, which include: onboarding due diligence fees, monthly account compliance fees based upon deposit activity, Safe Harbor programming licensing, investment income and loan activity income composed of origination fees, servicing fees and interest income. We partner with financial institutions, utilizing their balance sheets for both lending and depository activities in exchange for a fee-share agreement. Our proprietary fintech platform connects our CRB clients and the financial institutions allowing Safe Harbor to service the CRB clients directly, while the financial institution remains the money transmitter. This fintech platform, which sits on top of the financial institution and interfaces with its core system allows us to provide a robust and compliant cannabis infrastructure for our clients. Whereby they can make payments [ to suppliers ] and facilitate other transactions. The Safe Harbor interface directly works with the financial institution to fulfill requests and share data between Safe Harbor and the financial institution for servicing clients and allowing Safe Harbor to manage compliance and other support services. Among the services, Safe Harbor provides the following: Onboarding due diligence fees, CRBs being a high-risk market due to the cash intensive nature of the business require greater attention to KYC or know your customer regulations. This is a labor-intensive activity requiring human resources to analyze the safety and soundness of the operation and prevent any non-licensed or illicit entities from accessing the financial system. Because this often takes approximately 2 weeks, we charge our incoming clients a fee for onboarding. Monthly account compliance fees based upon deposit activity, CRB accounts require additional monthly quarterly and/or annual monitoring and validation of funds to meet bank secrecy obligations. We charge monthly fees on accounts for this monitoring and validation, averaging over $700 per account per month. Additionally, we earn fees on depository transactions such as wire, ACH origination and other financial service transactions. Investment income, our financial institution agreements allow us to profit from CRB balances on deposit. The majority of our deposits remain liquid and earn overnight rates from the Federal Reserve, and we share fees on this income as part of our agreements with our partner financial institutions. Loan activity income, our fastest-growing income is from building our credit portfolio. This income consists of an origination fee on the requested credit facility, annual servicing fees for monitoring and interest income. Safe Harbor earns a spread on the difference between the interest rate and the cost of funds negotiated with our partner financial institutions, allowing for a more reasonably priced credit facility. Due to the complex nature of the cannabis businesses as well as other risk factors resulting in a higher level of monitoring, we are able to charge a premium rate compared to normal commercial lending rates. Safe Harbor program licensing. We do not actively seek to sell our IP licensing to new financial institutions as a primary source of revenue, but carefully consider the markets that we could license to another financial institution in exchange for utilization of our proprietary software and IP. This provides a minor percent of revenue but allows us to focus on the fastest-growing markets while still profiting on less desirable markets. As you can see, our business model is unique, operating at the intersection of finance and cannabis industry. Growth in each of these revenue segments speaks directly to the value and need for our specific expertise within our finally developed business lines. With that, I'd like to turn to our key growth metrics, which clearly correlate one with another. Account relationship equates to an increased deposit base. Increased deposit base equates to greater lending opportunity at more favorable cost of funds. And the combination of both depository and credit services equates to long-term profitable relationships together building market share. Account relationships, deposit base. We had a key milestone in the third quarter by facilitating through our partner banks, over $20 billion in cannabis-related funds since our inception in 2015. We remain on target to exceed $4 billion in deposits in 2023, which would represent a 31% increase over 2022. Our strong quarter 3 deposit activity resulted in $2.23 million of deposit and onboarding income, an increase of over 63% from the same period in 2022. Our average active accounts for the quarter increased 49.6% to 986 from 659 in the third quarter of 2022. Balances on deposit increased 36.5% to $216.9 million in the third quarter of 2023 compared to $158.9 million in the third quarter of 2022. Our increased deposit base has also had a significant impact on investment income. These rate increases have positively affected our overall investment income, which increased 112% year-over-year to $1.19 million in third quarter of 2023. Lending opportunities, we continue to see a strong demand for CRB real estate lending and are consistently maintaining a pipeline of potential credit opportunities in excess of $100 million. Securing the best collateralized loans is a priority. Highlights for quarter 3 include the following examples: In July, we increased our lending and deposit relationship with a Tier 1 multistate operator by originating 3 new loans for affiliates of the MSO in the aggregate amount of $4.3 million. In September, we originated a $3 million loan for our Washington-based THC-infused beverage company to support its national expansion. Our increased loan activity is driving a new level of growth for Safe Harbor. Not only are we growing the number of CRB accounts alongside lending relationships, we are growing their value as we recognized new revenue streams from newly launched services. In the third quarter, we issued a total of $7.2 million in credit facilities, bringing our loan balance over $42 million, with present term sheet commitments issued in excess of $20 million and our ongoing ability to extend highly competitive rates, due to our established banking relationships, we expect a solid fourth quarter. As you know, we're currently operating in a rising rate -- rising rate environment that has seen rates go from near 0 in March of 2022 to the current federal funds rate of 5.5%. While these rate increases have been necessary to cool high inflationary measures, the rate increases have also helped to generate additional revenue for the company as we saw our loan interest income increased by almost 120% to $906,213 from $412,296 in the third quarter of 2022. New credit products. I would like to now -- like to discuss the new financial services that we have successfully integrated into our platform this past quarter. Early in third quarter, we launched an interest-bearing deposit accounts to provide depositors with the opportunity to earn interest on deposited funds. This is a first interest-bearing account product broadly available to U.S. cannabis businesses. In September, we launched a new line of credit products nationwide, creating credit facilities for cannabis enterprises ranging from $25,000 to $1 million at market lending normalized rates. With the introduction of these new financial and treasury tools, Safe Harbor is providing its ability -- proving its ability to play an integral part in normalizing banking for cannabis and -- for the cannabis industry to drive future cannabis finance. I would like to take a minute to discuss our recent announcement regarding the restructuring of certain deferred consideration with Abaca in November of 2022. Following the closing of the initial transaction, which closed in November of 2022, the cannabis industry as a whole has been impacted by ongoing legal and regulatory roadblocks. In order to prevent dilution of stock at the 1-year anniversary of closing, we worked with the Abaca founders and shareholders to support the long-term viability of Safe Harbor by restructuring the original terms of the Abaca acquisition. As a result of our mutually agreed upon amended terms, we were able to reduce the over-dilution by 10% while providing long-term benefits to both the company and its shareholders. I'd like to thank the Abaca shareholders for their willingness to come to an updated agreement, and we look forward to executing on our business strategy while expanding our footprint across the U.S. SAFER Banking Act. Before turning the discussion over to Jim, I would like to touch on the macro environment and how we believe recent legislative developments will positively impact Safe Harbor. The advancement of the Secure and Fair Enforcement Regulation, SAFER, Banking Act and recent push to move cannabis from a Schedule 1 to a Schedule 3 drug under the Controlled Substances Act, is reshaping the legal and regulatory landscape surrounding cannabis and is opening the door to additional growth opportunities for Safe Harbor to serve a larger customer base. As advances are made to loosen the regulatory strangle on the cannabis industry, we believe more and more cannabis businesses and financial institutions will seek our expertise in facilitating reliable and normalized banking services to grow their businesses as these financial solutions become more readily available. The SAFER Banking Act, which passed the Senate Committee vote in September, provides protection for federally regulated financial institutions that serve state-sanctioned marijuana businesses, creating new opportunities to offer deposit accounts, insurance and other financial services to companies operating in this space. While this is a positive step forward toward legalizing the cannabis industry, challenges remain for financial institutions banking the cannabis companies to fulfill their BSA obligations. As the cannabis industry continues to mature, we believe Safe Harbor will increasingly become the go-to fintech partners to CRBs and the financial institutions serving the industry. I'd now like to turn the call over to Jim to discuss our financial results as of September 30, 2023. Jim?

Thank you, Sundie, and good afternoon, everyone. For the 3 months ended September 30, 2023, Safe Harbor reported revenue of $4.3 million, up 79% from $2.4 million in the comparable prior year period. For the 9 months ended September 30, 2023, Safe Harbor reported total revenue of $13.1 million, an increase of 122% from $5.9 million for the prior year period. In the third quarter of 2023, revenue for deposit, activity and onboarding was $2.2 million, an increase of $864,000 or 65% versus the comparable prior year period. For the 9 months ended September 30, 2023, revenue for deposit activity and onboarding was $7 million, an increase of more than $2.8 million or 67% versus the comparable prior year period. The increase for both the 3 months ended and the 9 months ended periods was attributable to the acquired accounts from the Abaca transaction, an increase in the total number of accounts and a higher level of deposit activity than the prior year periods. Revenue earned in the 3 months ended September 30, 2023, for investment income was $1.19 million, an increase of $627,000 or 111% versus the prior year period. For the 9 months ended September 30, 2023, investment income was $4 million, an increase of $3 million or 300% versus the prior year period. The increase is attributable to higher interest rates and significantly higher deposit balances maintained by our clients with our financial institution partners. In the third quarter, loan interest income grew 119% or $493,000 versus the comparable prior year period to $906,000. For the 9 months ended September 30, 2023, loan interest income grew $1.3 million or 191% versus the comparable prior year period to $1.98 million. The increase in revenue was attributable to placing a greater volume of high-quality loans in both the 3 months ended and 9 months ended periods versus the prior year periods. Safe Harbor program income for the 3 months ended September 30, 2023, decreased by $31,000 or 81% versus the prior year period to $7,000 and for the 9 months ended September 30, 2023, Safe Harbor program decreased $78,000 or 62% versus the prior year period to $48,000. The income decrease in this element of revenue has been intentional as we strategically reduced the number of financial institutions permitted to license our program. Moving down the income statement. For the 3 months ended September 30, 2023, total operating expenses were $3.8 million compared to $1.6 million for the comparable prior year period. Total operating expenses include employee compensation and benefits, professional services, rent, provisions for loan losses, sales, marketing, general and administrative expenses. The increase in operating expenses was largely driven by an increase in employee compensation and benefit-related expenses, professional services expenses and provision for loan losses. For the 9 months ended 30 September 2023, total operating expenses were $32.1 million versus $4.2 million in the prior year period. Excluding an impairment charge of $16.9 million taken in the second quarter of 2023. Total operating expenses for the 9 months ended September 30, 2023, were $15.2 million. Apart from the impairment charges in the second quarter, the higher operating expenses for both the 3 months and 9 months ended 2023 compared to their respective prior year periods were attributable to increased headcount, resulting from stand-alone operations separate from Partner Colorado Credit Union, higher compensation-related expenses and stock-based compensation expenses. The increase in professional service expense was largely associated with the [ de-stack ] transaction and restructuring of de-stack related financial instruments. The increase in loan loss expense was attributable to the higher amount of credit placed in 2023 versus 2022. Compared to the preceding quarters of 2023, when separating out the impairment charges, the business has reduced its overall level of operating expense as we continue to focus on expense elimination and efficiency gains throughout all elements of the business. Consequently, net loss in the third quarter of 2023 was $748,000 compared to net income of $595,000 in the comparable prior year period. And for the 9 months ended September 30, 2023, the company reported a net loss of $19.8 million compared to net income of $1.4 million in the 9 months ended 2022. When adjusting net income for interest, taxes and depreciation and amortization expense and further adjustments to exclude noncash, unusual and/or infrequent costs, we compute on adjusted EBITDA which management believes is a better 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. Adjusted EBITDA for the quarter ended September 30, 2023, was $1.05 million versus $1.02 million in the comparable prior year period. And for the 9 months ended September 30, 2023, the company reported adjusted EBITDA of $2.3 million versus $2.15 million in the comparable prior year 9 months ended 2022. Moving to the balance sheet. At the end of September 30, 2023, the company reported cash and cash equivalents of $8.95 million compared to $8.4 million at the December 31, 2022. Cash used in operating activities through the third quarter of 2023 was $225,000 versus $1.97 million in cash provided by 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 2023 as well as a higher than normal run rate for professional service expense in 2023 associated with working through the many complex financial instruments placed at the time of the de-stack in September of 2022. Turning to our liquidity. The company reported a net working capital deficit on September 30, 2023, of $9.4 million versus $39.3 million at December 31, 2022. Our working capital deficit of $9.4 million includes $14.7 million associated with the deferred consideration owed to the sellers of Abaca in the form of stock -- common stock of the company. Excluding the stock portion of the deferred consideration, the company would have had a positive working capital of approximately $5.3 million, an increase of more than $2.8 million over the prior sequential quarter, the period ended June 30, 2023. Looking ahead to the balance of 2023, we expect to report full year revenue for 2023 in the range of $16 million to $16.5 million. Looking beyond the year-end, the company is pursuing initiatives to catalyze higher rates of growth for the business. We are in discussions with several financial institutions to acquire their portfolio of accounts. This will bring new client depository relationships in new states and will bring relationships with additional financial institutions. These new relationships will increase the total number of accounts, total value of deposits with financial institution partners and total lending capacity. To capitalize these initiatives, the business is also in discussions with partners to invest in our company to fund these growth initiatives. In our discussions with our capital partners, we are mindful that the cost of capital to fuel these growth initiatives needs to be less than the return on invested capital we expect from these pursuits. We have a well-developed model for this type of analysis, and we rely on this model to help inform the purchase price of the acquired portfolio, including the cost of merger integration, contain the cost of capital such that any project we pursue will be accretive to the income statement, balance sheet and shareholder capital and shape the business plan so that we earn the expected return model. Beyond our full year revenue guidance, we have not issued detailed guidance to date due to the transition of our company from a private to a public company. However, we do intend to provide more detailed guidance in the coming year. We believe after a year of performance and managing through the de-stack and debt issues, we have a great ability to anticipate future revenue, operating expenses, earnings and other key metrics important to our shareholders. With that, I will now turn the call back to Sundie, if -- or to the operator for any questions.

[Operator Instructions] Your first question comes from the line of Will Waller from M3F, Inc.

You disclosed in the press release that deposit balances on average at the financial institution clients were about $216.9 million in the quarter. I was just curious if you could disclose how much of that roughly is Partner Colorado Credit Union versus other financial institutions.

Well, I'll take that question. We haven't disclosed that in previous calls or disclosed it publicly. But I would say the easiest way to come about is about 3/4 of that, anywhere from like 2/3 to 3/4 of that is of Partner Colorado.

[Operator Instructions] We have no questions in our queue at this time. I will now turn the call over to Sundie Seefried for closing remarks.

Thank you. I would like to thank everyone again for joining us on today's call and for your continued interest in Safe Harbor Financial. We have proven the strength and value of our business model, now given our strong financial institutional partnership network, which continues to grow and our success in advancing new growth initiatives to meet the needs of today's cannabis industry participants, we believe we are on a strong path for continued results. We look forward to updating with you on our next -- continued progress on our next quarterly conference call. Thank you, and have a great day.

This concludes today's conference call. Thank you for your participation, and you may now disconnect.

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 Erika Kay from KCSA. Thank you.

You may begin. 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 its market opportunities and other financial operational matters. 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. 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. The 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 statements. 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 U.S. currency. Presenting today will be Sundie Seefried, Chief Executive Officer; and Jim Dennedy, Chief Financial Officer of Safe Harbor. I'll now hand the call over to Sundie. Sundie, please go ahead.

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. Safe Harbor Financial, now in our 9th 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 license ERVs throughout our network of financial partners. I am pleased to report that for a second consecutive year, we processed a record amount of quarterly deposits, over $1 billion, through 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. 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 is positioned within the financial service ecosystem and 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. Despite the industry's strong growth, CRBs continue to face barriers due to the complexity of state-by-state cannabis regulations, a lack of management 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 institutions access to increased deposits and servicing fees. It is important to note that even when the SAFE Thinking Act has passed, Cannabis Banking will remain complex, positioning Safe Harbor for continued success, grounded in our proprietary and fully compliant financial service platform, as well as in our ability to scale our business and expand our suite of financial services. From a market standpoint, we are 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. 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 Safe Harbor's network of financial institutions. We are also seeing a number of opportunities to reduce CRB's interest rate 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%. And it's not just about interest rates. It's also due to the fact we don't charge additional onerous fees or other hidden fees. We hope to put hard money lending to the industry in the rearview mirror, focusing on normalized credit options. Also, given the current rise in 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 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. 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 [$800 million] in quarter two 2022. Similarly, our balance is 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 in the second quarter of 2022. With our managed deposit base and number of active accounts continuing to grow during the second quarter of 2023, deposit fees increased by 90% to $2.56 million compared to $1.34 million in the same period last year. One of the keys to Safe Harbor's long-term success is the growing strength of our partnerships 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. 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 have 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. Given the significant increase in our access to deposit capacity combined with the record number of onboarded deposits this quarter, we have increased our balance from which to land, 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. While we continue to grow our financial institutions partner network with larger multibillion-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 5 years, our objective is to focus on fewer, larger regional financial institutions, that provide greater balance sheet growth opportunities for Safe Harbor clients. 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. In 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. We are confident these additional products and the revenues derived from them, were more than offset by any loss of revenue from the dissolution of the 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. 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. As a part of the ongoing Abaca integration, we have nearly completed our post-acquisition integration, which allowed for greater efficiencies and the reduction of redundancies. We will certainly realize the benefits of 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. 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 2 quarters, we anticipate limited net effect for our overall business. However, we will see some top line reduction at the revenue level. 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 of senior secured loans for CRPs. In May, we closed $5.5 million in first mortgage backed loans for 4 properties in key limited license markets, with terms to support financing for up to 9 additional properties across several states. The following month, we originated $6.7 million first lien secured loan for a global real estate investment firm, and we originated $2.9 million first lien secured loan 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. Not only does our relationship with this top-performing MSO 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 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. Loan interest income and fees have increased from 7% of annual income quarter 2, 2022 to 12% of annual income in quarter 2, 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 volume, we will begin providing metrics for the average loan balance, average life to repayment and average effective interest rate and loan status. 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 of account application and monthly fees, opening 13 new accounts with new social equity operators across 3 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 in ensuring the cannabis industry is fair and equitable. 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. Lending 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. Account growth activities while having always been a primary focus, has been organized to increase the efficiencies, allowing our staff to double present production, 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, deposit growth and lending capacity. 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?

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 6 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. 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 debt intangible assets, operating expenses for the quarter were $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. 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. The company's goodwill and long-lived intangible assets were derived from the acquisition of Rockview Digital Solutions 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. Based on the likely termination to the relationship with 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. 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-lived 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. Fair value determination of goodwill and long-lived assets require 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. 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 6 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. When adjusting net income for interest, taxes and depreciation and amortization expense and further adjustments to exclude noncash, unusual and/or infrequent costs, we compete in 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. Adjusted EBITDA for the quarter ending 30 June, 2023 was $850,000 versus $564,000 in the comparable prior year period. And for the 6 months ending 30 June, 2023, the company reports adjusted EBITDA of $1.3 million versus $1.1 million for the first half of 2022. Moving to the balance sheet; at 30 June, 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 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 for professional services expenses. Turning to our liquidity; the company reported a net working capital deficit on 30 June, 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. 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. With that, I will now turn the call back to the operator to open the call for questions. Gordon?

I would 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. Thank you, and have a great day.

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