The most oversold stocks in the consumer staples sector presents an opportunity to buy into undervalued companies.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the RSI is below 30, according to Benzinga Pro.Here's the latest list of major oversold pla ...

The most oversold stocks in the consumer staples sector presents an opportunity to buy into undervalued companies.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the RSI is below 30, according to Benzinga Pro.Here's the latest list of major oversold pla ...

Core Insights - 2025 was a pivotal year for 22nd Century Group, marking the end of a multi-year restructuring and the beginning of strategic initiatives aimed at strengthening its leadership in tobacco harm reduction [1][5] Tobacco Harm Reduction - The company is committed to leading the tobacco harm reduction movement through science-based innovation and responsible commercialization of reduced nicotine content combustibles [2] - The proprietary VLN reduced-nicotine cigarette platform is the only combustible cigarette authorized by the FDA as a Modified Risk Tobacco Product, containing approximately 95% less nicotine than conventional cigarettes [3][9] Consumer Feedback and Market Response - Early feedback from consumers indicates positive reception of VLN products, with some reporting significant reductions in cigarette consumption, including one individual who reduced consumption by approximately 66% in just 12 weeks [4] Strategic and Operational Progress - The company has made significant progress in executing its strategic priorities, focusing on sustainable profitability and improving its long-term financial outlook [5] - Transitioning to higher-margin branded products, expanding VLN product distribution to nearly 2,000 retail locations across over 20 states, and implementing cost-reduction initiatives have contributed to operational efficiency [7] Regulatory Landscape - The FDA proposed a rule to establish a maximum nicotine content for cigarettes, which could reshape the combustible tobacco market and aligns with the company's focus on reduced-nicotine products [8] - The VLN products are specifically designed to meet low nicotine thresholds, supported by scientific research and FDA authorization, highlighting the strategic relevance of the company's harm-reduction platform [9] Outlook for 2026 - As the company enters 2026, it aims to leverage regulatory momentum, consumer awareness, and its differentiated product portfolio to create long-term value [10]

Core Viewpoint - 22nd Century Group, Inc. is a leader in nicotine harm reduction in the tobacco industry, focusing on helping smokers manage their nicotine consumption through innovative products [3][4]. Group 1: Company Overview - 22nd Century Group is recognized as a pioneering company in the tobacco sector, dedicated to reducing the harms associated with smoking and nicotine addiction [3]. - The company has developed the VLN® cigarette, which contains 95% less nicotine than traditional cigarettes, providing smokers with a familiar option to control their nicotine intake [4][5]. Group 2: Product Details - The VLN® cigarette is designed to help smokers significantly reduce their nicotine consumption while maintaining an authentic smoking experience [4]. - The proprietary non-GMO reduced nicotine tobacco blends are created using patented technologies that regulate nicotine biosynthesis, ensuring full flavor and high yield with significantly lower nicotine content [5]. Group 3: Upcoming Events - The management team, including CEO Larry Firestone and CFO Dan Otto, will present at the Needham Growth Conference on January 16, 2026, and will be available for virtual one-on-one meetings [1].

Core Viewpoint - 22nd Century Group, Inc. is advancing the fight against smoking-related health harms through its VLN reduced nicotine content products, which have been authorized by the FDA as a Modified Risk Tobacco Product [1][4]. Group 1: Product and Market Impact - The VLN reduced nicotine content cigarettes have been shown to lower daily nicotine consumption by 40% over 12 weeks in a study with over 400 participants, indicating their potential to reduce smoking rates and increase quit attempts [2]. - Approximately 28.8 million smokers in the U.S. contribute to over $600 billion in annual healthcare costs related to tobacco harm, highlighting the significant market opportunity for VLN products [2]. - VLN cigarettes contain 95% less nicotine than conventional cigarettes, providing a non-addictive alternative for smokers [3][10]. Group 2: Regulatory and Strategic Developments - The FDA originally authorized VLN combustible cigarettes in December 2021 for a five-year period, with a renewal application filed for December 2026 [3]. - The company is expanding its range of VLN branded products and tobacco plant varieties to offer smokers more low-nicotine alternatives, aligning with the FDA's proposed guidelines for low nicotine [5]. - The renewal process is part of the company's ongoing research and development efforts to advance reduced nicotine content in tobacco and introduce additional VLN products [5]. Group 3: Company Vision and Leadership - The CEO of 22nd Century Group emphasized that the FDA's MRTP authorization for VLN cigarettes represents a forward-thinking approach to reducing smoking-related health harms, focusing on behavioral and social aspects of nicotine addiction [4]. - The company aims to empower smokers to take control of their nicotine consumption through its innovative VLN products, positioning itself as a leader in the tobacco harm reduction movement [8][9].

Summary of 22nd Century Group Conference Call Company Overview - **Company**: 22nd Century Group (Ticker: XXII) - **Industry**: Tobacco harm reduction - **Focus**: Pioneering nicotine harm reduction products, specifically VLN (Very Low Nicotine) branded products aimed at reducing nicotine addiction among smokers [1][2] Core Points and Arguments - **Transition Phase**: The company is moving from a debt-laden turnaround phase to a product launch and growth phase, indicating a positive shift in business strategy [2] - **Nicotine Epidemic**: The CEO highlighted a global nicotine epidemic, comparing its scale to the COVID pandemic, emphasizing the need for effective nicotine reduction solutions [2][4] - **Product Offering**: The VLN cigarette is presented as a solution to nicotine addiction, allowing smokers to reduce their nicotine intake while maintaining the smoking ritual [4][6] - **Target Market**: The company targets the 70% of the 28.8 million U.S. smokers who wish to quit, equating to approximately 20.5 million potential customers [5][8] - **Unique Selling Proposition**: Unlike traditional nicotine replacement therapies (NRTs), VLN products allow smokers to adjust their nicotine consumption without losing the smoking experience, which is crucial for habit change [6][8] Business Developments - **Inventory and Distribution**: Initial store inventories are being loaded, with some stores already reordering products. The company is also exploring cross-marketing opportunities [7][8] - **Financial Position**: The company is now debt-free and has received a $9.5 million insurance settlement, providing sufficient cash to sustain operations into 2026 [9][12] - **Growth Strategy**: The focus is on moving away from low-margin contract manufacturing operations to more profitable branded products [9] International Expansion - **South Korea Market**: Plans for a rollout in South Korea are currently on hold until the U.S. market is fully optimized [10] Marketing and Customer Acquisition - **Cost Efficiency**: Customer acquisition costs are low, primarily involving retail placement and minimal marketing expenses. The company is implementing promotional strategies to encourage product trials [13] Future Outlook - **Break-even Target**: The company aims to break even in the first half of 2026, with expectations of covering cash flow by that time [12] Additional Notes - **Website Functionality**: The company’s website (tryvln.com) is operational and provides updated information on product availability [11] - **CEO's Closing Remarks**: The CEO expressed optimism for the future and gratitude towards shareholders, indicating a positive outlook for 2026 [15]

Core Insights - 22nd Century Group, Inc. is a leader in the tobacco harm reduction movement, focusing on reducing nicotine addiction through innovative products [3][4]. Company Announcement - The CEO, Larry Firestone, will present at the Emerging Growth Virtual Investor Conference on December 10, 2025, at 3:55 PM Eastern Time [1]. Technology and Products - The company has developed proprietary non-GMO reduced nicotine tobacco plants that contain 95% less nicotine than traditional tobacco [4]. - The flagship product, VLN cigarette, is designed to provide traditional smokers with a familiar alternative while significantly reducing nicotine consumption [5]. - VLN cigarettes are the only low nicotine combustible cigarettes authorized by the FDA in the United States [6]. Investor Engagement - Investors can register for the conference online and submit questions in advance for consideration during the event [2]. - An archived webcast will be available for those unable to attend live [2]. Contact Information - Investor relations contact is Matt Kreps, reachable at investorrelations@xxiicentury.com or by phone at 214-597-8200 [8][9].

Core Insights - Emerging Growth Research released a quarterly update report on 22nd Century Group, highlighting a cash-rich balance sheet, full debt repayment, and a $9.5 million insurance settlement, along with a stabilized Contract Manufacturing Operations (CMO) [2][6] Financial Performance - 22nd Century Group fully repaid all remaining debt and settled a $9.5 million insurance-related legal case, resulting in a strengthened net cash position [6] - Q3 2025 revenue was $4.0 million, indicating stabilization after restructuring and the impact of a 2024 CMO price hike [6] - Gross profit declined to $(1.1) million due to increased excise taxes, despite improvements in per-unit margins [6] - Operating loss improved year-over-year to $(3.2) million as SG&A expenses were reduced [6] - Adjusted EBITDA remained stable at $(2.6) million compared to previous quarters [6] - Net cash increased to $14.0 million in Q3 2025, up from $(0.8) million in Q2 2025 [6] Strategic Outlook - Management is confident in achieving EBITDA breakeven by Q3 2026, driven by a higher-margin CMO mix and expansion of VLN® products [6] - The rollout of VLN® continues, with state registrations covering nearly all U.S. states and initial shipments underway [6]

Financial Data and Key Metrics Changes - The company reported a net revenue of $4 million in Q3 2025, a slight decrease from $4.1 million in Q2 2025, with total cartons sold dropping to 517,000 from 779,000 [34] - Gross profit was a loss of $1.1 million in Q3 2025, compared to a loss of $0.6 million in Q2 2025, reflecting lower volume and a transition to higher margin products [34] - The company ended the quarter with $4.8 million in cash and a $9.5 million receivable from an insurance recovery, increasing total assets to $32.4 million from $21.7 million at the end of 2024 [33] Business Line Data and Key Metrics Changes - The company is transitioning from a low-margin CMO business to higher-margin branded products, with shipments of newly branded VLN and partner VLN products totaling approximately 6,000 cartons year-to-date [30] - Natural style cigarettes contributed an additional 14,000 cartons to the total shipments, indicating a shift in product mix towards higher-margin offerings [30] Market Data and Key Metrics Changes - VLN and partner VLN products are now available in approximately 1,500 stores across 21 states, with authorization in about 40 states, which is crucial for expanding distribution [31] - The company expects to see rate of sale metrics in early 2026, which will provide insights into marketing effectiveness and consumer adoption [31] Company Strategy and Development Direction - The company aims to support the FDA's low nicotine mandate by positioning its VLN products as a solution for tobacco harm reduction, emphasizing the importance of both full nicotine and low nicotine offerings [22][26] - Future plans include licensing arrangements to allow other tobacco companies to adopt VLN products, thereby expanding market reach and supporting public health initiatives [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving EBITDA break-even by the second quarter of 2026, despite current challenges in sales metrics [39] - The company has successfully restructured its operations and is now focused on growth, with a well-funded balance sheet to support future initiatives [27][28] Other Important Information - The company has become debt-free and improved its balance sheet significantly, allowing for growth capital to be directed towards advancing VLN products in the market [27] - The management team has entered into customary employment agreements with key executives to support the company's growth trajectory [38] Q&A Session Summary Question: What are the plans for the $14 million in cash going forward? - The company plans to use the cash for operations, advancing VLN in the market, and initiating R&D and CapEx in early 2026 [36] Question: What is the current share equivalent of outstanding warrants? - There are just under 7 million shares outstanding, with a fully diluted basis of 23.7 million shares [37] Question: What is the impact of the Needham sales agreement on SG&A going forward? - The sales agent agreement will not change the current G&A level, as it is just formalizing terms for executive officers [37] Question: Is the company still targeting EBITDA break-even by the second quarter of 2026? - The company is still driving for that target and remains optimistic about achieving it [39]

Financial Performance - Net revenues for Q3 2025 were $4,011, a decrease of 32.5% from $5,946 in Q3 2024, primarily due to shifts in product mix [149]. - Gross profit for Q3 2025 was a loss of $1,059, compared to a loss of $588 in the prior year period, reflecting an increase of 80.1% in gross loss [150]. - Total operating expenses for Q3 2025 decreased to $2,153, down 22.8% from $2,789 in Q3 2024, driven by lower sales, general and administrative expenses [149]. - Operating loss from continuing operations for Q3 2025 was $3,212, a slight improvement from a loss of $3,377 in Q3 2024 [150]. - Net loss from continuing operations in Q3 2025 was $3,763, with a basic and diluted loss per share of $1.06, compared to a net loss of $3,585 and a loss per share of $848.84 in Q3 2024 [150]. - For the nine months ended September 30, 2025, net revenues were $14,050, a decrease of 31.0% from $20,361 in the same period of 2024 [151]. - Operating loss as a percentage of net revenues for Q3 2025 was 80.1%, compared to 56.8% in Q3 2024 [150]. - Total product line revenues for the nine months ended September 30, 2025, decreased to $14,050 million, a decline of $6,311 million compared to the prior year [153]. - Filtered cigars net revenues for the nine-month period ended September 30, 2025, decreased to $3,704 million, reflecting lower volumes and a shift towards higher margin products [153]. - Gross loss for the third quarter of 2025 was $(1,059) million, representing 26.4% of net revenues, compared to a gross loss of $(588) million or 9.9% in the prior year [154]. Cash Flow and Liquidity - The company had $4,846 in cash and cash equivalents as of September 30, 2025 [149]. - Cash and cash equivalents increased to $4,846 million as of September 30, 2025, compared to $4,422 million at December 31, 2024 [165]. - Working capital from continuing operations increased to $12,711 million as of September 30, 2025, up from $1,790 million at December 31, 2024, an increase of $10,921 million [166]. - The company incurred negative cash flow from operations of $(10,472) million for the nine months ended September 30, 2025, compared to $(9,947) million in the prior year [168]. - Cash provided by financing activities decreased to $10,746 million for the nine months ended September 30, 2025, down from $13,349 million in the prior year [171]. Expenses and Cost Management - Research and development expenses for Q3 2025 were $193, down 19.6% from $240 in the prior year period [150]. - SG&A expenses decreased by $698 million for the three months ended September 30, 2025, and by $2,048 million for the nine months ended September 30, 2025, primarily due to headcount reductions [155]. Business Outlook and Risks - The company expects to incur additional losses until it can generate significant revenue and profit in its tobacco business, raising substantial doubt about its ability to continue as a going concern [163]. - There have been no material changes to the information set forth in the Annual Report on Form 10-K for the year ended December 31, 2024, indicating stability in financial reporting [179]. - The company evaluates new accounting pronouncements to assess their potential impact on financial statements, ensuring compliance with accounting standards [180]. - There are no off-balance sheet arrangements as defined by Regulation S-K, indicating a straightforward financial structure [181]. - The company has not reported any material changes regarding market risk disclosures since the last annual report, suggesting consistent risk management practices [182]. Warrants and Shareholder Information - As of October 31, 2025, the company has 11,422,790 warrants outstanding, with the largest portion being 9,460,661 August 2025 warrants at an exercise price of $1.97, expiring on August 27, 2030 [176]. - The amended October 2024 PIPE warrants total 1,391,765, with no specified exercise price, expiring on July 15, 2030 [176]. - The company has implemented anti-dilution protection provisions for its warrants, allowing for cashless exercise options that could result in the issuance of two shares for no additional consideration [177]. Sales Performance - For the third quarter of 2025, cigarette volume increased to 345 cartons, reflecting additional CMO cigarette customers, while total cigarette sales decreased due to contractual price increases [153].