1933 Industries FY 2022 Revenue Grows 4.7% YoY To $9.22M

1933 Industries Inc. TGIFF TGIF released its fourth quarter and audited annual financial results for the year ended July 31, 2022, revealing total revenues were CA$12.5 million ($9.22 million) for fiscal 2022, a 4.7% increase compared to CA$12.0 million in fiscal 2021.

Fiscal 2022 Financial Highlights

• Gross margin was CA$2.7 million for fiscal 2022 compared CA$4.8 million during fiscal 2021.

• Net loss was CA$18.1 million for fiscal 2022 and CA$6.3 million for fiscal 2021. Without the non-cash items, the net loss is CA$3.8 million for fiscal 2022 and CA$4.3 million for fiscal 2021.

• Adjusted EBITDA loss was CA$3.7 million for fiscal 2022 and CA$2.2 million for fiscal 2021.

Other Highlights

• The company announced the resignation of Mark Baynes from its board of directors and the appointment of Ranson K. Shepherd as a director of the company.

• The company announced the sale of Nevada real estate assets for total net proceeds of $1.27 million. The company completed the sale of two parcels consisting of 2.78 acres of M1 zoned land, located in Las Vegas. The company originally purchased the lots for $835,000 in 2017. Proceeds from the sale will be used for general working capital.

• The company and Day One Beverages, Inc. mutually agreed to terminate the binding letter of intent between the parties for the company to acquire 100% of all of the authorized and issued shares of Day One. After a full due diligence review, the parties mutually agreed that it would be in their best interests to not move forward with the acquisition. The company entered into a loan agreement with Day One where the company loaned up to $500,000 through a line of credit. The loan receivable plus accrued interest in the amount of $480,515 as well as costs incurred of $30,052 was paid in full on June 28, 2022.

• The company issued 372,666 common shares pursuant to the conversion of CA$32,000 of convertible debentures and interest payable on the convertible debentures of CA$5,267.

• On August 15, 2022, 750,000 outstanding stock options expired unexercised.

• On August 24, 2022, debenture holders approved the amendment of the conversion price applicable to the convertible debentures to CA$0.05 per share being the lowest price at which the company is permitted to amend the conversion price, the reduction of the price per share for interest payments on the debentures from CA$0.10 to CA$0.05 per share, if the company in its sole discretion elects to pay such interest through the issuance of its common shares, and the extension of the maturity date for the debentures from September 14, 2022 to December 31, 2023.

• On September 3, 2022, 5,295,270 outstanding warrants expired unexercised.

• On September 27, 2022, the company completed the sale of a building for net proceeds of $2.43 million. Proceeds from the sale will be used for general working capital.

• The company issued 3.5 million common shares pursuant to the conversion of CA$169,241 of convertible debentures and interest payable on the convertible debentures of CA$5,528.

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