Humble & Fume Inc. Announces Financial Results for Third Quarter Fiscal 2023.

TORONTO: Humble & Fume Inc. (CSE: HMBL) (OTCQX: HUMBF) ("Humble" or the "Company"), a leading distributor of cannabis and cannabis accessories in North America, announced its financial and operating results for the third quarter of fiscal 2023 ended March 31, 2023. The Company made significant progress toward achieving its goals and recorded several improvements in its operations, including reduced operating expenses and increased gross margins.

HIGHLIGHTS INCLUDE:

AR Improvement $2.5 MM vs Q2;

Gross Margin improvement of 4.2% vs Q2 in our North American accessories business;

Upgrading talent and promoting functional experts within the business resulted in improved commercial performance reporting and strengthened financial controls;

Reclassified our priority SKUs to focus on profit margin, positioning ourselves for success by prioritizing AR collection while providing value-added communication and advice to partners and dispensaries;

Ahead of schedule, resetting our approach to customer service and enhancing our retail excellence promise;

Reduction of inventory balance of $3.9MM vs the end of the prior fiscal year, resulting in better supply chain management and timely deliveries;

Optimized talent and resource allocation, resulting in a reduction of salary and wages of $614k versus Q2;

Through strategic cost-cutting measures, tighter operational controls and a focus on customer service initiatives, Humble & Fume Inc. has minimized losses and increased financial performance; and

The total comprehensive loss attributable to the shareholder for the three-month period ending March 31st, 2023, increased from $2,372 to $2,531 compared to the same period last year.

"We are pleased with the incremental change for the better seen in Q3, as we have minimized losses and made strides towards achieving our goals," said CEO Jakob Ripshtein. "While we are proud of our progress, we recognize that there is always room for improvement, and we remain committed to continuously raising the bar and doing even better in the future."

During Q3, the Company recorded an AR improvement of $2.5 million compared to Q2. In addition, the gross margin improved by 4.2% in the North American accessories business compared to Q2. The Company also reduced its inventory balance by $3.9 million compared to the end of the prior fiscal year, resulting in better supply chain management...