Mr. Brian Farrell reports

1933 INDUSTRIES ACHIEVES POSITIVE INCOME IN Q1 2026, MARKING THIRD CONSECUTIVE PROFITABLE QUARTER

1933 Industries Inc. has released its first quarter financial results for the three months ended Oct. 31, 2025, and 2024. All amounts expressed are in Canadian dollars.

The company owns 100 per cent of Alternative Medicine Association (AMA), the company's cultivation and production subsidiary centred on the medical and adult-use cannabis market in the state of Nevada.

Focusing on quality and value offerings, the company wholesales cannabis flower, prerolls and boutique concentrate products under its proprietary AMA brand to retail accounts across Nevada. AMA-branded products consistently rank as top sellers based on volume in the state and the company is a key supplier in the Las Vegas market.

Q1 2026 highlights:

• Delivered $4-million in revenue;
• Achieved $1-million gross profit and gross margin of 25 per cent;
• Reduced expenses to $800,000 from cost-saving initiatives compared with $1.9-million in the prior year;
• Realized net income of $139,219 compared with a net loss of $577,829 during the same comparable period;
• Achieved comprehensive income of $167,249 compared with a comprehensive loss of $354,904 in the prior year;
• Recognized as a top-five-selling cannabis brand in Nevada.

Management commentary

"During the first quarter of fiscal 2026, the company reported revenues of approximately $4-million, achieved significant cost reductions with expenses lowered to $800,000 and delivered a gross profit of nearly $1-million. These improvements resulted in net income of $139,219 and comprehensive income of $167,249 for the period, marking a positive turnaround compared to the prior year," said Brian Farrell, chief executive officer and chairman of the board. "We continue to execute on our cost-saving initiatives and operational improvements. Our ability to deliver positive net income for three consecutive quarters while maintaining product quality and market presence in Nevada demonstrates the resilience of our business model. We remain focused on positioning the company for sustainable growth while pursuing long-term value creation. We are also encouraged by the recent developments in the U.S. to reclassify cannabis from a Schedule I to a Schedule III substance under the U.S. Controlled Substances Act. 1933 Industries remains ready to capitalize on future opportunities in the growing cannabis sector."

Q1 2026 compared with Q1 2025

The company generated revenue of $3,965,932 in the current period, compared with $3,993,007 in the prior-year comparable period. The company generated gross profit of $978,303 in the current period, compared with gross profit of $1,307,439 in the prior-year comparable period, as a result of slower sales in Q1 2026.

Gross margin calculated as gross profit divided by revenue was 25 per cent in Q1 2026 and 33 per cent in Q1 2025.

The company's expenses decreased to $839,084 from $1,885,268 in the prior-year comparable period.

Net income was $139,219 for Q1 2026 and comprehensive income was $167,249. Net loss was $577,829 and comprehensive loss was $354,904 in the prior-year comparable period.

Key developments

On Sept. 9, 2025, the company announced that it had closed the debenture repurchase agreement with two arm's-length parties for the repurchase and cancellation of a portion of the company's outstanding unsecured convertible debentures. Pursuant to the agreements, the company repurchased $475,000 in principal value of debentures for total cash consideration of $47,500. Following the closing, the debentures were transferred, cancelled and removed from the company's outstanding liabilities.

Subsequent events

On Nov. 8, 2025, a total of 10.55 million stock options with an exercise price of 10 cents expired.

On Nov. 9, 2025, a total of 3.7 million share purchase warrants with an exercise price of eight cents expired.

Positive industry developments

The company is encouraged by the recent executive order signed by U.S. President Donald Trump on Dec. 18, 2025, directing federal agencies to reclassify cannabis from a Schedule I to a Schedule III substance under the U.S. Controlled Substances Act. This significant regulatory development is seen as a step toward improving the operating environment for U.S. cannabis businesses, potentially alleviating certain tax burdens and improving access to banking services. While regulatory processes are continuing, this reclassification could positively impact the cannabis industry by reducing administrative costs, improving tax treatment and facilitating better financial access. The company believes this development is an encouraging sign for the future growth prospects of 1933 Industries.

Furthermore, the administration's clarity regarding the hemp-derived CBD (cannabidiol) market creates significant new opportunities for the industry. In light of these developments, the company is actively reviewing its Canna Hemp assets to ensure alignment with new CBD regulations, with a view toward a potential future relaunch of these products.

Financial statements are prepared in accordance with IFRS (international financial reporting standards) accounting standards issued by the International Accounting Standards Board (IASB) and the IFRIC interpretations of the IFRS interpretations committee. Detailed information regarding the company's financial results as well as management discussion and analysis can be found on SEDAR+ and the 1933 Industries website.

About 1933 Industries Inc.

1933 Industries is a Nevada-based licensed producer, focused on the cultivation and extraction of a large portfolio of cannabis consumer products in a variety of formats under its flagship brand, Alternative Medicine Association (AMA). Its product offerings are cultivated at the company's 68,000-square-foot indoor facility and marketed directly to retail dispensaries. AMA-branded flower, infused prerolls and in-house boutique concentrates consistently rank as the top products sold in Nevada.

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