Mr. Brian Farrell reports

1933 INDUSTRIES REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS

1933 Industries Inc. has released its second quarter financial results for the three and six months ended Jan. 31, 2026 (fiscal 2026), and Jan. 31, 2025 (fiscal 2025).

The company owns 100 per cent (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, 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.

Fiscal 2026 highlights:

• Revenue of $7.9-million;
• Gross profit of $1.9-million;
• Gross margin of 24 per cent;
• Expenses of $2.1-million;
• Net loss of $200,000;
• Recognized as a top-five selling cannabis brand in Nevada.

Fiscal 2026 and fiscal 2025 consolidated operating financial highlights

Revenue

Total revenues were $7.9-million for fiscal 2026 and $8.4-million for fiscal 2025. The decrease in revenues is attributed to continuing declining flower pricing and market contraction, increased competition from illicit intoxicating hemp products, and the slump in tourism, particularly in Las Vegas.

Expenses

During the reporting period, expenses decreased to $2.1-million, compared with $3.7-million in the prior-year comparable period. The decrease from the prior year was primarily attributed to lower licence taxes and insurance expenses.

Gross profit

The company generated gross profit of $1.9-million for fiscal 2026, compared with gross profit of $2.8-million for fiscal 2025. The decrease in gross profit was attributed to lower prices due to market saturation and aggressive retail dispensary pricing cuts implemented to compete with the resilient illegal market.

Gross margin

Gross margin calculated as gross profit divided by revenue was 24 per cent in fiscal 2026 and 34 per cent in fiscal 2025.

Net loss

Net loss for fiscal 2026 was $200,000 and comprehensive loss was $500,000. Net loss was $890,000 and comprehensive loss was $700,000 in the prior-year comparable period.

Management commentary

Challenging market conditions in Nevada have negatively impacted revenues and profitability; however, AMA has maintained strong brand positioning with notable performance across both the concentrates and flower categories. According to market intelligence provider Headset, AMA demonstrated a dynamic shift in competitive positioning between November, 2025, and February, 2026, underscoring resilient demand for its products.

In the concentrates category, AMA maintained a strong presence, ranking second in November, 2025, fifth in January, 2026, and second by February, 2026, reflecting sustained consumer interest despite broader market pressures. In the flower category, AMA improved its standing from third in November, 2025, to first place by February, 2026, indicating growing consumer preference for AMA flower offerings and highlighting the brand's resilience and adaptability within a highly competitive market.

The company is encouraged by impending federal changes related to the regulation of intoxicating hemp products, which are perceived as a primary contributor to the decline in Nevada's legal cannabis sales. The federal Continuing Appropriations and Extensions Act of 2026, signed in late 2025, is expected to redefine hemp effective November, 2026. This change will effectively prohibit most psychoactive hemp-derived cannabinoids at the federal level, providing a pathway for Nevada regulators to further restrict and phase out these products, which is anticipated to support a more normalized and competitive legal cannabis market.

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's discussion and analysis, can be found on SEDAR+ and the company's website.

(1) As of May 30, 2025.

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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