1933 Industries Achieves Positive Income in Q1 2026, Marking Third Consecutive Profitable Quarter

Rhea-AI Summary

1933 Industries (OTC:TGIFF) reported Q1 2026 results for the three months ended October 31, 2025, delivering $3.97M revenue, $978,303 gross profit and $139,219 net income, marking its third consecutive profitable quarter. The company recorded a 25% gross margin and reduced operating expenses to $839,084 from $1,885,268 year‑over‑year. Management highlighted cost‑saving initiatives, top‑5 Nevada brand ranking, and readiness to benefit from a U.S. regulatory reclassification of cannabis to Schedule III. The company repurchased and cancelled $475,000 principal value of convertible debentures for $47,500, and subsequent expirations removed 10,550,000 stock options and 3,700,000 warrants from potential dilution.

Positive

• Net income of $139,219 for Q1 2026
• Operating expenses reduced to $839,084 from $1,885,268 (≈56% decrease)
• Repurchased and cancelled $475,000 debenture principal for $47,500

Negative

• Gross margin fell to 25% from 33% (down 8 percentage points)
• Gross profit declined to $978,303 from $1,307,439 (≈25% decrease)

VANCOUVER, BC / ACCESS Newswire / December 22, 2025 / 1933 Industries Inc. (the "Company" or "1933 Industries") (CSE:TGIF)(OTCID:TGIFF), a Nevada-focused cannabis cultivator and producer, is pleased to announce its first quarter financial results ("Q1 2026") for the three months ended October 31, 2025 and 2024. 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 in the state of Nevada.

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 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 $4.0 Million in Revenue

• Achieved $1.0 Million Gross Profit and Gross Margin of 25%

• Reduced Expenses to $0.8 Million from cost-saving initiatives compared to $1.9 Million in the prior year

• Realized Net Income of $139,219 compared to a Net Loss of $577,829 during the same comparable period

• Achieved Comprehensive Income of $167,249 compared to a Comprehensive Loss of $354,904 in the prior year

• Recognized as a top 5 selling cannabis brand in Nevada^[2]

MANAGEMENT COMMENTARY

"During the first quarter of fiscal 2026, the Company reported revenues of approximately $4.0 million, achieved significant cost reductions with expenses lowered to $0.8 million, and delivered a gross profit of nearly $1.0 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 Mr. Brian Farrell, CEO 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 US 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 TO Q1 2025

The Company generated revenue of $3,965,932 compared to $3,993,007 in the prior year comparable period. The Company generated gross profit of $978,303 in the current period compared to 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% in Q1 2026 and 33% 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 September 9, 2025, the Company announced that it had closed the Debenture Repurchase Agreement (the "Agreements"), 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 November 8, 2025, a total of 10,550,000 stock options with an exercise price of $0.10 expired.

On November 9, 2025, a total of 3,700,000 share purchase warrants with an exercise price of $0.08 expired.

POSITIVE INDUSTRY DEVELOPMENTS

The Company is encouraged by the recent executive order signed by U.S. President Donald Trump on December 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 ongoing, 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 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® 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 brand, Alternative Medicine Association (AMA). 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.

[1] As of May 30, 2025

[2] https://www.headset.io/brands/alternative-medicine-association-ama

SOURCE: 1933 Industries Inc.

View the original press release on ACCESS Newswire

FAQ

What were 1933 Industries (TGIFF) Q1 2026 revenue and net income figures?

Q1 2026 revenue was $3,965,932 and net income was $139,219 for the three months ended October 31, 2025.

How did 1933 Industries (TGIFF) cut costs in Q1 2026?

Operating expenses fell to $839,084 from $1,885,268 year‑over‑year, driven by the company's announced cost‑saving initiatives.

What does the debenture repurchase announced by 1933 Industries mean for TGIFF shareholders?

The company repurchased and cancelled $475,000 principal of convertible debentures for $47,500, reducing outstanding unsecured convertible debt and related liabilities.

Did 1933 Industries (TGIFF) report any change to potential dilution after Q1 2026?

Yes; subsequent events removed potential dilution when 10,550,000 stock options and 3,700,000 warrants expired in November 2025.

How did gross margin and gross profit for TGIFF change in Q1 2026 versus Q1 2025?

Gross margin declined to 25% from 33%, and gross profit fell to $978,303 from $1,307,439 year‑over‑year.

What regulatory development did 1933 Industries cite as a potential positive for TGIFF?

The company cited a U.S. executive order directing agencies to reclassify cannabis from Schedule I to Schedule III as a potential positive for industry operating conditions.