SHF Holdings announces change in accounting firm

SHF Holdings, Inc. (NASDAQ:SHFS), a finance services company with a market capitalization of $6.21 million and annual revenue of $16.1 million, has reported a change in its independent accounting firm according to a recent SEC filing. According to InvestingPro data, the company has faced significant challenges, with its stock declining over 84% in the past year. On Monday, the company’s Audit Committee was informed by Marcum LLP that their auditor relationship had ended, effective the same day.

The now-terminated relationship with Marcum LLP spanned the fiscal years ending December 31, 2024, and December 31, 2023. Marcum’s reports during this period did not contain any adverse opinions or disclaimers and were not qualified or modified, except for an explanatory paragraph regarding the company’s going concern uncertainty.

Throughout the engagement and up until the termination date, SHF Holdings and Marcum had no disagreements on accounting principles or practices, financial statement disclosure, or auditing scope or procedure that would have required Marcum to report the disagreements.

The SEC filing also disclosed material weaknesses in SHF Holdings’ internal controls over financial reporting for fiscal years 2023 and 2024. These weaknesses pertained to internal controls over the review of revenue recognition with a related party, management review controls over debt and equity financial instruments, evaluation of going concern, and certain information technology controls. Financial metrics from InvestingPro highlight the company’s challenges, including a negative EPS of -$17.43 and a concerning current ratio of 0.95, though the company maintains a Fair overall financial health rating.

SHF Holdings has provided Marcum with the disclosures made in the SEC filing and has received a letter from Marcum, dated April 18, 2025, for submission to the SEC, which concurs with the company’s statements. As of Friday, the Audit Committee has approved the engagement of a new independent registered public accounting firm to audit the company’s financial statements for the year ending December 31, 2025. The company is currently undergoing the new firm’s client acceptance process and expects to provide an update once the process is finalized.

This announcement follows the company’s transition from its former name, Northern Lights Acquisition Corp., which took place on April 2, 2021. The company’s business address and contact information remain unchanged in Golden, Colorado. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with 10 additional ProTips and detailed financial metrics in its Pro Research Report, helping navigate this period of transition and operational challenges.

Investors are closely monitoring these developments as changes in certifying accountants can be significant. The information presented is based on SHF Holdings’ SEC filing.

In other recent news, SHF Holdings, Inc. is dealing with potential delisting from Nasdaq due to non-compliance with listing requirements. The company failed to meet the minimum bid price of $1.00 per share for 30 consecutive business days but recently resolved this issue by maintaining a minimum closing bid price for 10 consecutive days. However, SHF Holdings still needs to address a shareholders’ equity requirement of $2,500,000 for the year ended December 31, 2024, and has 45 days to submit a compliance plan to Nasdaq. Additionally, SHF Holdings announced a 1-for-20 reverse stock split effective March 24, 2025, to consolidate shares, which was approved by the board and stockholders. This move aims to increase the per-share trading price and improve marketability and liquidity of its shares. The company also reported the departure of its Chief Strategic Business Development Officer, Tyler Beuerlein, effective March 17, 2025, with no disagreements cited regarding company operations. Furthermore, Safe Harbor Financial, a part of SHF Holdings, renegotiated debt terms with Partner Colorado Credit Union, securing a two-year interest-only period and freeing up over $6 million in cash flow. This strategic financial move is designed to support Safe Harbor’s growth and stability.

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