Last week 1933 Industries Inc. (CSE: TGIF)(OTCQX: TGIFF) reported its first-quarter financial results for the period ended October 31, 2020, in Canadian dollars. Total revenues were $2.7 million, a 13% increase from the previous quarter. The company said that the increase was attributed to its launch of cannabis flower and pre-rolls in the Nevada market. The net loss was $2.8 million or $0.01 per share for the quarter. This was a 61% improvement from a $7.2 million loss in the fourth quarter.
Company President Mr. Eugene Ruiz said, “During the first quarter of 2021, tremendous progress was made. That progress has continued into the second quarter 2021, with our operating business units achieving profitability for the month of November 2020. We continue to believe we are on the path to achieving Company-wide profitability by the end of the second quarter of 2021. We remain vigilant and cognizant of the challenges posed by COVID-19 on tourism in our state while remaining confident that the rebound of strong local cannabis sales experienced since the pandemic will provide for sustainable revenue growth.”
The company said that despite the drop in tourism in Nevada, demand for craft cannabis flower remains strong and that the company’s new saleable flower and cannabis products have sold out after each harvest. Gross margin was $729,000 or 27%, compared to $63,000 or 3% during Q4 2020. The increase in gross margin from the prior quarter is due to the company’s enhanced ability to produce saleable flower and biomass from its cultivation facility.
1933 was able to cut expenses in the quarter to $1.2 million versus $2.0 million in the fourth quarter and $2.3 million during Q1 2020. This change over the prior quarter represents the managements’ commitment to making strategic reductions to streamline operations with the overarching goal