Safe Harbor Financial reveals $979,000 Q3 loss
By Jon CuthbertKey points
- Safe Harbor Financial reported third-quarter 2026 revenue of US$1.95 million, up 6.5% year-over-year, but swung to a US$979,000 net loss.
- Operating loss narrowed to US$1.002 million, but cash declined to US$4.40 million from US$6.78 million at year-end, with substantial doubt about continued operations remaining.
- A proposed combination with Opifex could give its shareholders 85% ownership of the combined company, while Nasdaq extended Safe Harbor's compliance deadline to April 19, 2027.
Safe Harbor Financial (NASDAQ:SHFS) reported third-quarter 2026 revenue of US$1.95 million, up 6.5% year-over-year, while net results swung to a US$979,000 loss from US$180,000 in income a year earlier.
Loan program income increased 70.2% to US$869,000 under revised terms with Partner Colorado Credit Union, which raised Safe Harbor's share of applicable loan income from approximately 35% to as much as 65%, despite lower average loan balances.
Operating loss narrowed to US$1.002 million from US$1.217 million, but cash declined to US$4.40 million from US$6.78 million at year-end, and management said substantial doubt about the company's ability to continue as a going concern remains.
Following the announcement, Safe Harbor shares were up approximately 2.7% at US$0.027 in premarket trading on November 9, compared with the November 6 closing price of US$0.0263.
Under a nonbinding agreement with Opifex, its shareholders would own approximately 85% of the combined company, while existing Safe Harbor stakeholders would receive 15%, adjustable between 12.5% and 17.5%, subject to definitive agreements, approvals and financing.
Safe Harbor provides banking, lending and financial services to regulated cannabis and hemp businesses, while Nasdaq has extended its deadline to regain the US$1 minimum bid-price requirement to April 19, 2027, following a 1-for-12 reverse stock split effective September 30, 2026.
