Revenue

3 Months Ended

Mar. 31, 2025

Revenue from Contract with Customer [Abstract]

Revenue

Note 11. Revenue

Disaggregated revenue

Revenue by type are as follows:

	Three months ended March 31
	2025		2024
Account fee income	$	1,072,465	$	1,620,994
Loan interest income		540,222		1,636,756
Investment income		300,435		773,819
Safe Harbor Program income		19,230		19,230
Total Revenue	$	1,932,352	$	4,050,799

Account fee income is generated from businesses maintaining accounts with the Company’s financial institution partners and includes deposit account fees, account activity fees, and onboarding income. These fees are recognized periodically in accordance with the fee schedule established with financial institution partners. The Company also earns income from outsourced support services provided to financial institutions offering banking solutions to the cannabis industry, with revenue recognized based on usage as specified in the agreements.

Loan interest income includes interest earned on both direct loans and loans under the PCCU CAA, which were indemnified until December 31, 2024. Following the elimination of the indemnification liability upon the execution of the amended PCCU CAA on December 31, 2024, the indemnified status was removed. Under the Amended PCCU CAA, the Company’s interest income on all loans with PCCU has been calculated using a loan yield allocation formula that incorporates the Constant Maturity US Treasury Rate from Standard & Poor’s Capital IQ data service, along with a proprietary risk rating formula to determine the fee split between the Company and PCCU.

Investment income is derived from interest earned on the daily deposit balances of cannabis businesses held with the Company’s financial institution partners and is recognized monthly based on the average net daily deposit balance.

The Safe Harbor Program provides financial institutions with a non-exclusive, non-transferable right to implement and utilize the documented process for managing compliance requirements.

Revenue from account fee income, loan interest income, investment income and Safe Harbor Program income is recognized over time. Payments for all revenue streams, except for Safe Harbor Program income, are collected on a monthly basis. Under the Safe Harbor Program, any difference between amounts collected and revenue recognized as of the reporting date is recorded as contract assets and contract liabilities. Refunds are applicable only to account fees collected from customers and are granted as part of the ongoing business relationship with the customer.

During the three months ended March 31, 2025, PCCU’s contributions to the Company’s revenues included $1,068,430 from deposits, activities, and client onboarding, $292,436 from investment income, and $540,222 from loan interest income. The associated expenses for these revenues were $472,635 for account hosting, in accordance with the amended PCCU CAA, classified as “General and Administrative Expenses” in the Unaudited Condensed Consolidated Statements of Operations. During the three months ended March 31, 2024, PCCU’s contributions to the Company’s revenues included $1,217,675 from deposits, activities, and client onboarding, $731,425 from investment income, and $1,636,756 from loan interest income. The related expenses for these revenue streams were $104,259 for account hosting, $160,101 for investment hosting fees, and $35,901 for loan servicing fees, classified as “General and Administrative Expenses” in the Unaudited Condensed Consolidated Statements of Operations.