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

Executive Summary

• 1933 Industries reported Q1 2026 revenue of C$4.0 M, gross profit of C$1.0 M and a gross margin of 25%, marking a turnaround to net income of C$139,219 versus a net loss in the prior year.
• Expenses were reduced to C$0.8 M from C$1.9 M YoY through cost‑saving initiatives.
• The company completed a debenture repurchase (C$475k principal for C$47.5k cash) and disclosed expiration of stock options and warrants in November 2025.

Key Details

• Revenue: C$4,000,000 for Q1 2026 (vs. C$3,965,932 in Q1 2025).
• Gross Profit: C$978,303 (Q1 2026) vs. C$1,307,439 (Q1 2025).
• Gross Margin: 25% in Q1 2026, down from 33% in Q1 2025.
• Operating Expenses: C$839,084 for Q1 2026, a reduction of ~55% from C$1,885,268 in Q1 2025.
• Net Income: C$139,219 (positive) versus a net loss of C$577,829 in the comparable prior period.
• Comprehensive Income: C$167,249 vs. a comprehensive loss of C$354,904 YoY.
• Debenture Repurchase Agreement (closed 9 Sep 2025): Repurchased $475,000 principal value of unsecured convertible debentures for cash consideration of $47,500; debentures cancelled and removed from liabilities.
• Option & Warrant Expirations (Nov 2025): 10,550,000 stock options at $0.10 exercise price expired; 3,700,000 share purchase warrants at $0.08 exercise price expired.
• Regulatory Outlook: Management highlighted the U.S. executive order (18 Dec 2025) to reclassify cannabis from Schedule I to Schedule III, which could improve tax treatment and banking access for the industry.

Notable Quotes

“We continue to execute on our cost‑saving initiatives and operational improvements… delivering positive net income for three consecutive quarters while maintaining product quality and market presence in Nevada demonstrates the resilience of our business model.” – Brian Farrell, CEO & Chairman

All amounts are expressed in Canadian dollars.