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Wednesday, 06/29/2022 7:53:31 PM

Wednesday, June 29, 2022 7:53:31 PM

Post# of 2035
**NEWS** 1933 Industries Announces Third Quarter 2022 Financial Results

During fiscal 2022, the Company made substantial changes to its cultivation and production facilities which have resulted in significant improvements in the quality of its flower and the input for its extracted products, as well as higher productivity and quantity of units sold. These changes have led the Company to achieve higher revenues compared to its previous quarter and have laid the foundation for improved performance going forward. The Company's cannabis cultivation subsidiary recorded a 33% increase in revenues from the sale of cannabis flower, pre-rolls and extraction products due to the optimization of both its cultivation and processing facilities. Output from its cultivation has been drastically increasing and yield has almost doubled from a year ago. The Company deployed strategic capital to make the necessary improvements and hired operations and sales leadership, which have resulted in improved performance in both output and added self-space in dispensaries. Focus was also placed on reducing the cost of goods, which in turn increased gross margins.

Liking the 33% increase in revenues and the cultivation output doubling over last year. They harvested a record $5+ million in cannabis/trim during the quarter, and ended the quarter with $7.4 million in inventory. They also had $1.7 million in receivables in addition to their cash balance at quarters end. Plus Day One was able to repay the loan so that should add to 1933's working capital as well.

Except for the non-cash goodwill impairment expense this looks like a solid quarter to me, with positive EBITDA and a respectable 47% gross margin. Hopefully this is the last big write down of previous management's mistakes, and we can rapidly move forward to profitability in this current quarter. The Vegas tourism board just reported spending nearing pre-covid levels so that will help. Like :) Congrats Team!!! glta

Posts are my opinion only, and not advice of any kind. glta