Star Metro - 1933 Industries Announces Year End 2025 Financial Results and Reports Positive Income

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.

FISCAL 2025 HIGHLIGHTS

• Realized net income before taxes of $0.03 million and comprehensive income of $0.2 million compared to a net loss before taxes of $2.25 million and comprehensive loss of $1.07 million in fiscal 2024 -recording over 100% improvement in earnings

• Delivered revenue of $17.4 million -improving cultivation, THC levels and optimizing inventory

• Achieved record gross profit of $5.4 million -gaining efficiencies in plant growth and cost savings

• Recorded gross margin of 26% -indicating improved efficiencies across all operations

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

MANAGEMENT COMMENTARY

During Fiscal 2025, the Company remained focused on its core business, implementing a new strategy of disciplined financial controls while making substantial operational improvements and optimizing its inventory. In cultivation, the Company made key enhancements that resulted in plants testing higher THC concentrations. These efforts contributed to an over 100% increase in earnings, record gross profit, and stronger margins. Despite heightened market competition, industry-wide pricing compression, and lower tourism in Nevada, the Company continued to deliver strong sales across its diverse product portfolio and ranked among the top five brands by volume in Nevada.

In the concentrates category, AMA consistently held a top-three position, reaching second place in July, September, and October. In the flower category, AMA ranked fifth during those same months, underscoring steady consumer demand and strong brand loyalty.

"Our performance in Fiscal 2025 reflects the strength of our strategy and the resilience of our team. Achieving positive income for the first time in the history of the Company gives us further confidence that we are on the right path. AMA's consistent top rankings in Nevada demonstrate the power of our brand and our commitment to quality. We are confident that these achievements position us well for continued growth in the year ahead," said Mr. Brian Farrell, Chairman and CEO of 1933 Industries.

Ms. Ester Vigil, President, said, "We are constantly innovating and remain agile in responding to changing market conditions. We have solidified our brand presence with established product offerings, supported by our renowned reputation for quality flower, pre-rolls, and concentrates that meet evolving consumer demands. We thank our entire team for their ongoing dedication and commitment to quality, while delivering value to our wholesale accounts."

FISCAL 2025 AND FISCAL 2024 CONSOLIDATED OPERATING FINANCIAL HIGHLIGHTS

• Total revenues were $17,446,923 for 2025 and $19,350,916 for 2024. Despite an increase in total units sold over the previous year, the decrease in revenue is attributed to ongoing price compression and a state-wide slowdown in cannabis retail sales across Nevada.

• Expenses were $5,131,128 for 2025 compared to $5,196,048 for 2024. The decrease from the prior year was primarily due to decreases to wages and benefits, professional, and management fees.

• Gross profit was $5,164,676 for 2025 and gross profit of $2,941,963 for 2024. The increase in gross profit was primarily due to decreases in cost of sales from operational efficiencies.

• Net income before taxes was $33,548 for 2025 and comprehensive income was $197,621. Net loss before taxes was $2,254,085 and comprehensive loss was $1,065,679 in the prior year, signaling a strong performance and improved operational efficiency. The results position the Company for growth and boost confidence in its strategic direction.

• Gross margin excluding fair value adjustments, calculated as gross profit excluding fair value adjustments divided by revenue was 26% in Fiscal 2025 and margin of 14% in Fiscal 2024, indicating slightly reduced production costs against revenues in the year. Gross margin calculated as gross profit divided by revenue was 30% in Fiscal 2025 and a margin of 15% in Fiscal 2024.

SUBSEQUENT EVENTS

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.

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.

The recent amendments introduced in the Farm Bill by the US government included a redefinition of hemp and THC standards. Under the amendments, finished hemp-derived products must contain no more than 0.4 mg of total THC per container, which effectively bans nearly all intoxicating hemp products like delta-8 gummies, THCA flower, and THC beverages. For licensed cultivators in legal states such as 1933 Industries, the hemp ban could reduce competition from hemp-derived THC businesses, especially in states where hemp products previously filled gaps in consumer demand. This shift may increase demand for regulated cannabis products, creating a potential growth opportunity for licensed operators, reducing price pressure and consumer diversion.

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
[email protected]

Brian Farrell, Chairman and CEO
[email protected]

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

D.Cameron--SMC