1933 INDUSTRIES INC.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended April 30, 2022 and 2021

(Expressed in Canadian Dollars)

(Unaudited)

Notice of Disclosure of Non-Auditor Review of the Condensed Interim Consolidated Financial Statements for the Three and Nine Months Ended April 30, 2022 and 2021.

Pursuant to subsection 4.3(3)(a) of National Instrument 51-102 - Continuous Disclosure Obligations, issued by the Canadian Securities Administrators, if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The accompanying unaudited condensed interim consolidated financial statements of 1933 Industries Inc. (the "Company" or "1933 Industries") for the interim period ended April 30, 2022 and 2021, have been prepared in accordance with the International Accounting Standard 34 - Interim Financial Reporting as issued by the International Accounting Standards Board, and are the responsibility of the Company's management.

The Company's independent auditors, MNP LLP, have not performed a review of these condensed interim consolidated financial statements.

June 29, 2022

1933 INDUSTRIES INC.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Expressed in Canadian dollars) - Unaudited

As at

Note

April 30, 2022

July 31, 2021

$

$

ASSETS

Current

Cash

966,053

4,405,849

Receivables

4

1,737,056

934,109

Inventory

5

7,466,085

4,199,850

Biological assets

6

904,916

865,953

Loan receivable

7

620,968

-

Prepaid expenses and deposits

8

887,726

743,455

12,582,804

11,149,216

Property and equipment

9

16,677,759

18,677,577

Goodwill

10

4,465,341

15,527,023

Total assets

33,725,904

45,353,816

LIABILITIES

Current

Accounts payable and accrued liabilities

3,137,629

1,381,208

Income tax payable

1,227,246

488,899

Current portion of lease liability

11

431,255

459,553

Warrant liability

12

-

380,146

Current portion of convertible debentures

13

4,482,729

-

9,278,859

2,709,806

Lease liability

11

13,173,081

13,176,655

Convertible debentures

13

-

4,234,819

Total liabilities

22,451,940

20,121,280

Shareholders' equity

Share capital

14

81,855,012

81,817,159

Reserves

14(d)

10,152,909

10,145,449

Accumulated other comprehensive loss

(1,156,057)

(1,320,710)

Deficit

(78,807,037)

(64,649,281)

Equity attributable to shareholders of the Company

12,044,827

25,992,617

Non-controlling interest

15

(770,863)

(760,081)

Total shareholders' equity

11,273,964

25,232,536

Total liabilities and shareholders' equity

33,725,904

45,353,816

Events after the reporting period (note 23)

Approved on behalf of the Board of Directors and authorized for issuance on June 29, 2022:

"Signed"

"Signed"

Brian Farrell, Director

Paul Rosen, Director

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

3

1933 INDUSTRIES INC.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF (LOSS) INCOME For the three and nine months ended April 30, 2022 and 2021

(Expressed in Canadian dollars, except share numbers) - Unaudited

Three months ended

Nine months ended

Note

2022

2021

2022

2021

$

$

$

$

Revenues

22

4,256,280

3,370,510

9,930,426

9,464,852

Cost of sales

5

2,474,488

2,527,492

6,385,625

6,217,990

Gross margin, excluding fair value

adjustments

1,781,792

843,018

3,544,801

3,246,862

Fair value adjustment on sale of

inventory

6

(604,400)

334,784

(1,716,877)

(471,017)

Fair value adjustment on biological

assets

6

833,301

1,289,352

2,756,157

2,115,003

Gross margin

2,010,693

2,467,154

4,584,081

4,890,848

Expenses (income)

General and administration

18,20

447,021

413,114

1,144,374

1,436,109

License fees, taxes, and insurance

1,080,836

208,321

2,617,880

1,348,047

Management and consulting fees

18

107,000

110,580

321,677

305,227

Wages and benefits

18

167,264

280,435

713,428

1,338,825

Professional fees

18

425,698

349,736

972,459

880,796

Share-based compensation (recovery)

expense

14(f)

(17,510)

315,602

8,138

930,231

Interest expense

11,13

440,046

439,994

1,335,139

1,580,914

Accretion expense

13

-

16,625

10,434

91,377

Depreciation

9

97,746

49,187

291,082

975,080

Gain on change in fair value of warrant

liability

12

(10,146)

-

(380,146)

-

Gain on disposal of property and

equipment

9

(527,446)

-

(527,446)

-

Goodwill impairment

10

11,472,845

-

11,472,845

-

Interest income

7

(14,907)

-

(14,907)

-

Other income

-

(298,013)

-

(298,013)

Foreign exchange (gain) loss

(731)

(1,100)

44,786

(55,271)

13,667,716

1,884,481

18,009,743

8,533,322

(Loss) income from continuing

operations before income taxes

(11,657,023)

582,673

(13,425,662)

(3,642,474)

Current income tax expense

(718,368)

-

(718,368)

-

Net (loss) income from continuing

operations

(12,375,391)

582,673

(14,144,030)

(3,642,474)

Net loss from discontinued operations

21

-

-

-

(2,493)

Net (loss) income for the period

(12,375,391)

582,673

(14,144,030)

(3,644,967)

Net (loss) income from continuing

operations attributable to:

Shareholders of the Company

(12,371,044)

389,107

(14,157,756)

(3,700,717)

Non-controlling interest

(4,347)

193,566

13,726

58,243

Net (loss) income attributable to:

Shareholders of the Company

(12,371,044)

389,107

(14,157,756)

(3,703,210)

Non-controlling interest

(4,347)

193,566

13,726

58,243

Net (loss) income from continuing

operations per share

Basic and diluted

(0.03)

0.00

(0.03)

(0.01)

Net loss from discontinued operations

per share

Basic and diluted

-

-

-

(0.00)

Net (loss) income per share

Basic and diluted

(0.03)

0.00

(0.03)

(0.01)

Weighted average number of shares

outstanding

Basic and diluted

450,699,319

365,763,894

450,679,522

365,763,894

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

4

1933 INDUSTRIES INC.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS For the three and nine months ended April 30, 2022 and 2021

(Expressed in Canadian dollars) - Unaudited

Three months ended

Nine months ended

2022

2021

2022

2021

$

$

$

$

Net (loss) income for the period

(12,375,391)

582,673

(14,144,030)

(3,644,967)

Other comprehensive income (loss)

Foreign currency translation adjustment

(Item that will be

subsequently reclassified to profit or

loss)

140,235

(1,096,389)

140,145

(2,542,959)

Comprehensive loss for the period

(12,235,156)

(513,716)

(14,003,885)

(6,187,926)

Comprehensive (loss) income

attributable to:

Shareholders of the Company

(12,371,044)

389,107

(14,157,756)

(3,703,210)

Translation adjustment - Shareholders of

the Company

137,209

(1,072,570)

164,653

(2,510,024)

Comprehensive loss attributable to

shareholders of the Company

(12,233,835)

(683,463)

(13,993,103)

(6,213,234)

Non-controlling interest

(4,347)

193,566

13,726

58,243

Translation adjustment -Non-controlling

interest

3,026

(23,819)

(24,508)

(32,935)

Comprehensive loss attributable to Non-

controlling interest

(1,321)

169,747

(10,782)

25,308

(12,235,156)

(513,716)

(14,003,885)

(6,187,926)

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

5

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1933 Industries Inc. published this content on 29 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 June 2022 22:01:02 UTC.