VANCOUVER, BC / ACCESS Newswire / June 16, 2025 / 1933 Industries Inc. (the “Company” or “1933 Industries”) (CSE:TGIF)(OTC PINK:TGIFF), a Nevada-focused cannabis cultivator and producer, is pleased to announce its third quarter financial results (“Q3 2025”) for the three and nine months ended April 30, 2025 and 2024 (“Fiscal 2025”). All amounts expressed are in Canadian dollars.
The Company owns 100%1 of Alternative Medicine Association (AMA), the Company’s cultivation and production subsidiary centred on the medical and adult-use cannabis market. At the end of the reporting quarter, the Company owned 91% of AMA, which is reflected in these financial statements. The transaction to acquire the remaining 9% ownership was completed subsequent to the close of the period. Refer to Subsequent Events.
Focusing on quality and value offerings, the Company wholesales cannabis flower, pre-rolls and boutique concentrate products under its proprietary AMA brand to retail accounts in the state of 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.
Q3 2025 HIGHLIGHTS
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Revenue of $4.7 million, a 7% increase from Q2, signalling sustained growth
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Net income of $472,396, compared to a loss of 313,370 in the previous quarter, indicating a significant shift in financial performance
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Gross profit of $2.5 million, an increase from gross profit of $1.5 million in Q2
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Gross margin of 53%, an increase from 35% quarter in the previous quarter
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Top 5 selling brand in Nevada
FISCAL 2025 AND FISCAL 2024 CONSOLIDATED OPERATING FINANCIAL HIGHLIGHTS
Revenue
Revenue was $4.7 million in Q3 2025 compared to $4.6 million in the prior year comparable period2, reflecting the continued strength and stability of the AMA brand as a top seller by volume in Nevada.
Total revenues were $13.1 million for Fiscal 2025 and $14.5 million for Fiscal 2024. The decrease is attributed to a state-wide slowdown in cannabis retail sales across Nevada during Q1 2025.
Gross Profit
Gross profit was $2.5 million in the current Q3 2025 period compared to gross profit of $2.3 million in Q3 2024 comparable period.
Gross profit was $5.3 million in Fiscal 2025 and $5.3 million in Fiscal 2024.
Gross Margin
Gross margin calculated as gross profit divided by revenue was 53% in Q3 2025 and 49% in Q3 2024, demonstrating continuous operational efficiencies with a clear path toward positive cash flow.
Gross margin was 40% in Fiscal 2025 and 37% in Fiscal 2024.
Expenses
In Q3 2025, expenses decreased to $2.0 million from $2.2 million in the prior year comparable period due to cost reductions in G&A, professional fees, share based compensation, wages and benefits. Expenses were $5.7 million for Fiscal 2025 compared to $6.3 million for Fiscal 2024.
Net Income/Loss
Net income was $472,396 and comprehensive income was $286,647 for Q3 2025. In comparison, net income was $69,964 and comprehensive loss was $31,189 in Q3 2024, highlighting a disciplined approach towards cost reductions and streamlined operations.
For Fiscal 2025, net loss was $418,803 and comprehensive loss was $441,470. For Fiscal 2024, net loss was $964,602, and comprehensive loss was $661,792 during the same comparable period.
MANAGEMENT COMMENTARY
The ongoing improvements in operational efficiencies reflect on increased top line sales revenue and margins and set a path towards sustainable growth. We continue to refine our business, eliminating redundancies and focusing on cost reductions. Against the background of macroeconomic challenges, including industry-wide pricing compression, increased competition, and a slowdown in tourism in Nevada, AMA’s brand position and ranking in the market remains resilient, based on delivering consistent high quality cannabis products and value and by adapting to changing consumer needs.
“The Company delivered a strong quarter, remaining focused on achieving profitability, while navigating a challenging environment. We are confident in our team’s ability to continue to deliver strong results, as we look for opportunities to grow and enhance shareholder value”, said Mr. Brian Farrell, Chairman and CEO of 1933 Industries.
Ms. Ester Vigil, President, said, “Our team understands the realities of today’s cannabis landscape. Rather than overextending, we’re doubling down on what we do best – running a tight, efficient operation that delivers real value to our retail customers.”
SUBSEQUENT EVENTS
On May 22, 2025, the Membership Interest Purchase Agreement (the “MIPA”) entered into by its wholly owned subsidiary, FN Pharmaceuticals, and Mr. Caleb Zobrist (the “Seller”) to acquire his nine percent (9%) of the issued and outstanding membership interests of Alternative Medicine Association LC (“AMA”) was amended.
Under the amended terms of the MIPA, the purchase price (the “Purchase Price”) for the Membership is a total of USD$50,000, payable to the Seller USD$25,000 in cash and USD$25,000 through the issuance of shares of common stock of 1933 Industries (the “Shares”). The final number of Shares to be issued to the Seller is 5,503,450 as determined via the 10 day VWAP price of the Shares on November 27, 2024, being the date the transactions contemplated by the MIPA (the “Transaction”) were approved by the Nevada Cannabis Compliance Board.
The Shares are subject to a hold period in Canada expiring on October 1, 2025. Additional restrictions will apply pursuant to the Securities Act of 1933, as amended.
The parties closed the Transaction on May 30, 2025. With the completion of the MIPA, FN Pharmaceuticals owns 100% of the membership interest in AMA, the Company’s cultivation and production subsidiary.
As Mr. Zobrist was a senior officer of the Company at the time the MIPA was entered into, he is a “related party” to the Company within the meaning of Multilateral Instrument 61-101- Protection of Minority Security Holders in Special Transactions (“MI 61-101”). As such, the transaction constitutes a “related party transaction” within the meaning of MI 61-101.
The Company intends to rely on exemptions from formal valuation and the minority shareholder approval requirements of MI 61-101 found in sections 5.5(a) and 5.7(1)(a) of MI 61-101 as the fair market value of the transaction does not constitute more than the 25% of the Company’s market capitalization.
Financial statements are prepared in accordance with IFRS® 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’s discussion and analysis can be found at https://sedar.com/ and https://1933industries.com/investors/financial-information
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 brands, Alternative Medicine Association (AMA) and Level X. Its product offerings are cultivated at the Company’s 68,000 sq. ft. indoor facility and marketed directly to retail dispensaries. AMA branded flower, infused pre-rolls, and in-house boutique concentrates consistently rank as the top products sold in Nevada. For more information, please visit www.1933industries.com
For further information please contact:
Alexia Helgason, VP, Investor Relations
604-728-4407
alexia@1933industries.com
Brian Farrell, Chairman and CEO
brian@1933industries.com
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice regarding Forward Looking Statements: This news release contains forward-looking statements. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “believe” and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this news release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company’s disclosure documents, which can be found under the Company’s profile on www.sedar.com. 1933 Industries undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
1As of May 30, 2025.
2See Discontinued Operations of Infused on Note 22 of the Financial Statements, as Infused operations have been classified separately from operations.
SOURCE: 1933 Industries Inc.
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