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Tuesday, 11/29/2022 11:34:11 AM

Tuesday, November 29, 2022 11:34:11 AM

Post# of 2035
**NEWS** 1933 Industries Reports Fourth Quarter and Annual Financial Results for Fiscal Year 2022

Under current leadership the Company has stabilized its operations and decreased expenses from the previous year by $1.9 million, without compromising revenue. During fiscal 2022, the enhancements made to the Company's cannabis cultivation facility resulted in the doubling of yield from its previous year and provided the necessary input material to increase its production of extracted products. The Company has proven to be an experienced operator with a well-positioned cultivation facility that can continue to scale. As the market normalizes to pre-Covid levels, the Company will continue to find ways to operate more efficiently to increase revenues and achieve profitability.

Considering the inflationary strain on consumers wallets in 2022 the company still managing to post a revenue gain for the year is positive to me. Pretty strong considering AMA customer Planet 13 just reported sequential revenues down 22%. Also encouraging for the upcoming end of December Q1 report is 1933's reported 34% increase in concentrate sales in 2022.

In stressful tight money times it makes sense that customers would want the most bang for their buck, and AMA's significant increase in concentrate sales seems to bare this out. Studies show maturing cannabis consumers move more and more to cannabis concentrates for stronger better tasting results. Stats show infused pre-rolls are the fastest growing category of all and are expected to be big sellers in Vegas consumption lounges. AMA also produces Top 10 selling regular pre-rolls including #6 SinMint Cookies, and #7 Scarlett Johansson.

To Me these annual numbers reflect the normal summer slowdown in Vegas and all the ugly write downs built up through previous managements. Still believe Paul and the team are on the right track featuring exotic cultivars infused with exotic concentrate combinations at reasonable prices locals can afford. When prices get back to normal AMA will benefit from all the market share they gained selling top shelf product at value prices. IMHO :)

Looking more forward to the fall Q1 numbers coming up end of December. They started Q1 with over $5 million in inventory so hopefully they sold through that and then some. Believe we will get a better look at a much cleaner 2023 balance sheet more reflective of current sales. Liking that the company remains optimistic and says they are confident for strong growth in 2023.
Fingers crossed for strong Q1 numbers. glta

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