Safe Harbor Financial Services, whose largest shareholder is a Denver credit union, announced Wednesday it lost $582,592 million in the fourth quarter, which was a massive improvement from its $51.7 million loss a year earlier.
The Denver company's revenue had been falling over the three years through September 2025, but its $2.1 million revenue for the three months that ended Dec. 31 marked a 13% gain from the third quarter.
Partner Colorado Credit Union ($639 million in assets, 34,667 members) spun off its CUSO serving cannabis businesses in September 2022, and it still owns about a quarter of the company's shares.
The value of those shares has been falling over most of the company's life and reached an all-time low of $0.75 on Monday. But on Wednesday, the stock closed at $0.91, its best showing since late February and up from $0.78 Tuesday. It closed Sept. 30, 2022, at $139.80 just after the credit union spun off Safe Harbor.
Just as in the past two years' annual reports, the company's new auditor, Macias Gini & O'Connell LLP of Sacramento, Calif., attached a "going concern" note to the report.
"The Company has a significant working capital deficiency, has incurred significant losses and may need to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern," the auditors' note said.
CEO Terry Mendez said the company has plenty of cash, no debt and a rising revenue stream.
"I believe they're going to be wrong again," he said.
Major concessions from the credit union have helped the company. Last September, Partner Colorado extinguished $10.7 million in debt in exchange for 13,436 preferred shares plus 865,200 warrants exercisable at $7.76.
For the year, Safe Harbor lost $2.2 million, an improvement from its $48.3 million loss in 2024. Revenue fell 50% to $7.7 million. Its operating loss was $5.4 million, down from a $7.1 million operating loss in 2024.
Mendez said the renegotiated agreements and other financial transactions have allowed the drop in operating losses.
"That's because we fixed the capital structure of the company," he said.
The year's drop in revenue was mainly the result of a Dec. 31, 2024 change in its business agreement with Partner Colorado, which is its largest source of revenue. Another change that took effect Oct. 1, 2025 improved revenue in the fourth quarter, according to the company's 10K annual report filed with the SEC Wednesday afternoon.
The net loss in 2024 "was significantly influenced by a large, non-recurring deferred tax asset valuation adjustment of $43.9 million," according to the annual report.
Cash and cash equivalents were $6.8 million at the end of 2024, up from $2.3 million a year earlier.
Partner Colorado's stake was worth $117.4 million at the time of the September 2022 spinoff. Based on the credit union owning 1.08 million shares, or 24%, of the company Dec. 31, its stake would have been worth $980,940 following Wednesday's close.
Contact Jim DuPlessis at Jim.DuPlessis@arc-network.com.
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