MOCKSVILLE, N.C., April 17, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a tobacco products company that is leading the fight against nicotine and believes smokers should have a choice about their nicotine consumption, (the “Company”) has released the following notice according to THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF NEW YORK: UNITED STATES DISTRICT COURTFOR THE WESTERN DISTRICT OF NEW YORK IN RE 22ND CENTURY GROUP, INC. DERIVATIVE LITIGATIONLead Case No. 1:19-cv ...

MOCKSVILLE, N.C., April 09, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a tobacco products company that is leading the fight against nicotine by offering smokers a choice about their nicotine consumption, today announced execution of two new agreements from former customers to supply their filtered cigar products. As part of our expanding customer partnerships, 22nd Century Group is increasing production of filtered cigars. Initial shipments are expected in the second quarter of 2025, ...

Corporate Update Letter Highlights Plans to Begin Profitable Growth Phase in 2025 on Expansion of Rebranded VLN® Cigarette Products MOCKSVILLE, N.C., April 08, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a tobacco products company that is leading the fight against nicotine by offering smokers a choice about their nicotine consumption, today issued the following letter to stockholders from Larry Firestone, the Chief Executive Officer of 22nd Century Group, Inc.: A Letter to Our Sharehol ...

Corporate Update Letter Highlights Plans to Begin Profitable Growth Phase in 2025 on Expansion of Rebranded VLN® Cigarette Products MOCKSVILLE, N.C., April 08, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (NASDAQ:XXII), a tobacco products company that is leading the fight against nicotine by offering smokers a choice about their nicotine consumption, today issued the following letter to stockholders from Larry Firestone, the Chief Executive Officer of 22nd Century Group, Inc.: A Letter to Our Sharehold ...

Financial Data and Key Metrics Changes - The company reported net revenue of $4 million in Q4 2024, a decrease from $5.9 million in Q3 2024, with a gross margin loss of $1.2 million compared to a loss of $588,000 in the same period [47][48] - Total liabilities decreased by over $18 million or nearly 50%, ending the year at $17.7 million, and net working capital improved to positive $1.6 million from a deficit of $8.8 million in the prior year [51][52] - Cash interest paid during 2024 was reduced to $722,000 compared to $1.3 million in the prior year, and overall cash burn has declined significantly [52] Business Line Data and Key Metrics Changes - The company focused on restructuring its contract manufacturing operations, which have been the primary source of revenue, and is expected to see growth in volume and sales in 2025 [25][49] - The rebranded VLN product is anticipated to begin shipping in Q2 2025, with new marketing campaigns aimed at driving sales [49][39] - The company has signed and started shipping additional CMO brands for export, while offloading unprofitable filtered cigar contracts [16] Market Data and Key Metrics Changes - The U.S. cigarette market is approximately $85 billion, with big tobacco owning about 85% of it, leaving a $12.5 billion market for other brands [30] - The company is poised to relaunch VLN and introduce partner VLN brands, which will compete for shelf space in the 15% of the market not dominated by big tobacco [31][35] Company Strategy and Development Direction - The company has repositioned itself as a pure-play tobacco company, divesting from the GVB hemp/cannabis business and focusing on the VLN product line [12][14] - The strategy includes expanding the reach of VLN to other tobacco products and developing next-generation products that fit within the VLN brand [37][40] - The company aims to achieve profitability in 2025, with a focus on revenue growth and margin improvement through CMO contracts and VLN distribution [45][46] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced during the turnaround process, including cash burn and operating losses, but expressed optimism about achieving breakeven in Q4 2025 [24][58] - The company is focused on executing its strategy and operations to drive sustainable growth and cash-positive operations [23][60] - Management highlighted the importance of rate of sale and customer awareness in achieving success with the VLN product line [35][39] Other Important Information - The company is actively involved in a lawsuit against Dorchester Insurance Company for $9 million in business interruption insurance claims, with a trial date set for November 2025 [53] - The FDA's proposed rule on nicotine yield could provide a favorable environment for the VLN product, as it is currently the only FDA-approved product that meets the proposed standard [40][41] Q&A Session Summary Question: Do you see stabilization of CMO contract terminations in Q1 2025? - Management indicated that the reshuffling of CMO contracts has completed, and production under new contracts is now moving forward, with expectations for breakeven in Q4 2025 [58]

Financial Performance - Net revenues for the fourth quarter of 2024 were $4,020, a decrease of 45.4% from $7,357 in 2023, primarily driven by a decrease in volumes of filtered cigars [191]. - Net revenues for the full year 2024 were $24,382, a decrease of 24.3% from $32,204 in 2023 [193]. - Gross profit (loss) for the fourth quarter of 2024 was a loss of $1,254 compared to a loss of $7,829 in the prior year period [191]. - Operating loss for the fourth quarter 2024 was $4,091, compared to a loss of $14,232 in the prior year period [191]. - Net loss in the fourth quarter of 2024 was $4,246 representing a net loss per share of $10.59 compared with a net loss in the fourth quarter of 2023 of $22,068, representing a net loss per share of $1,413.40 [191]. Operating Expenses and Cash Flow - Total operating expenses for the fourth quarter 2024 decreased 56% to $2,837 compared to $6,403 in the prior year quarter [191]. - Cash used in operating activities decreased from $54,987 in 2023 to $14,345 in 2024, a reduction of $40,642, primarily due to lower consolidated net loss and cost-saving initiatives [214]. - The company incurred negative cash flow from operations of $14,345 for the year ended December 31, 2024, and has an accumulated deficit of $393,871 as of the same date [208]. Financing and Liabilities - The company decreased consolidated liabilities from December 31, 2023 to December 31, 2024 by $18,251, including an $8,124 reduction in long-term debt [191]. - Cash provided by financing activities decreased by $20,361 from $37,209 in 2023 to $16,848 in 2024, driven by lower net proceeds from long-term debt issuance and other financing sources [217]. - The remaining principal balance under the Senior Secured Credit Facility is $7,690, with $1,500 classified as current [220]. - The company raised net proceeds of $2,245 from warrant exercises in January and February 2024, and $3,913 from common stock issuance in April 2024 [219]. Asset Management and Impairment - The company performed an annual impairment review of indefinite-lived intangible assets on December 1, 2024, and determined that it is more likely than not that the assets are not impaired [232]. - No impairment indicators were identified for long-lived assets during 2024 [236]. - Impairment assessments for indefinite-lived intangible assets consider factors such as sales projections, strategic objectives, and market conditions [231]. - The carrying value of long-lived assets is reviewed against undiscounted future cash flows to determine impairment [233]. - The company has the option to perform a qualitative assessment before conducting a quantitative impairment review for indefinite-lived intangible assets [231]. - No significant changes in the estimated useful lives of long-lived assets were reported, and depreciation rates may be accelerated if useful lives are shorter than originally estimated [233]. Strategic Initiatives - The company completed the sale of substantially all of the GVB hemp/cannabis business in December 2023, focusing fully on tobacco operations [191]. - The company executed two significant new export customer contracts to drive additional revenue and improve margin profile, with initial shipments during the fourth quarter [191]. - The company announced plans for new VLN product branding and marketing initiatives designed to drive greater customer engagement, with the first VLN partner brand set to begin shipments in the second quarter of 2025 [191]. Cash and Working Capital - As of December 31, 2024, the company had cash and cash equivalents of $4,422, an increase of $2,364 from $2,058 as of December 31, 2023 [211]. - The company's working capital improved to $1,790 as of December 31, 2024, compared to a working capital deficit of ($6,826) as of December 31, 2023, representing an improvement of $8,616 [212]. Management Judgments and Estimates - Significant management judgment is required in estimating cash flows and useful lives of long-lived assets, with potential material effects from unforeseen changes [235]. - The company uses a Monte Carlo valuation model to estimate the fair value of detachable warrants, with key assumptions including expected future volatility and the expected life of the warrants [237]. - The company evaluates embedded derivatives in debt agreements to determine if they require bifurcation, using a binomial lattice model for fair value estimation [238]. - The company does not have any off-balance sheet arrangements as defined by Regulation S-K [239].

Financial Performance - Net revenues for Q4 2024 decreased to $4.0 million, down 45.4% from $7.4 million in Q4 2023[9] - Gross profit for Q4 2024 was $(1.3) million, an improvement of 84.0% compared to $(7.8) million in Q4 2023[9] - Operating loss for Q4 2024 increased to $4.1 million, compared to $3.4 million in the previous quarter[7] - Net loss from continuing operations for Q4 2024 was $4.2 million, a significant reduction of 80.8% from $22.1 million in Q4 2023[9] - Adjusted EBITDA loss for Q4 2024 was $3.9 million, a slight improvement of 10.9% from a loss of $4.4 million in Q4 2023[9] - Revenues for 2024 were $24,382 million, down 24.6% from $32,204 million in 2023[26] - Gross loss improved from $(8,696) million in 2023 to $(2,400) million in 2024, indicating a reduction in losses by approximately 72.4%[26] - Operating loss from continuing operations decreased from $(44,931) million in 2023 to $(13,950) million in 2024, a favorable change of about 68.9%[26] - Net loss from continuing operations improved from $(54,686) million in 2023 to $(15,495) million in 2024, a reduction of approximately 71.7%[26] - Adjusted EBITDA loss narrowed from $(30,100) million in 2023 to $(13,136) million in 2024, reflecting an improvement of about 56.4%[30] - Basic loss per common share from continuing operations improved from $(5,776.63) in 2023 to $(105.85) in 2024[26] Revenue Sources - Cigarette net revenues were $3.3 million in Q4 2024, down from $4.1 million in Q3 2024, while carton volumes increased to 228 thousand from 156 thousand[8] Assets and Liabilities - Total assets decreased from $27,503 million in 2023 to $21,673 million in 2024, a decline of approximately 21.2%[24] - Total current liabilities decreased significantly from $25,034 million in 2023 to $9,962 million in 2024, a reduction of approximately 60.2%[24] - Cash and cash equivalents increased from $2,058 million in 2023 to $4,422 million in 2024, an increase of about 114.4%[24] - The company reported net debt of $3.3 million at the end of fiscal 2024[7] Strategic Initiatives - The company launched new VLN branding, with products ready for shipment in Q2 2025, including a new logo and marketing plan[7] - A five-year expanded license and manufacturing agreement was signed with Smoker Friendly, covering 11 existing products and eight new premium products[7] - VLN cigarettes have 95% less nicotine than traditional cigarettes, positioning the company as a leader in nicotine harm reduction[12] Shareholder Information - Weighted average shares outstanding increased from 9,467 in 2023 to 146,392 in 2024, indicating a significant increase in share count[26]

Core Viewpoint - 22nd Century Group, Inc. is initiating a growth strategy for 2025, focusing on leveraging both internal and external brand assets across multiple categories, with plans to ship its first VLN partner brands in Q2 2025 [1][4]. Financial Performance - For Q4 2024, net revenues decreased to $4.0 million from $5.9 million in Q3 2024, reflecting a 45.4% decline [6][10]. - Gross profit was a loss of $(1.3) million, compared to a loss of $(0.6) million in the previous quarter [6][10]. - Operating loss increased to $4.1 million from $3.4 million, while net loss rose to $4.2 million from $3.6 million [6][10]. - Adjusted EBITDA loss was $3.9 million, worsening from a loss of $3.2 million in Q3 2024 [6][10]. Year-End Results - For the year ended December 31, 2024, net revenues were $24.4 million, down 24.3% from $32.2 million in 2023 [10][27]. - Gross loss for the year was $(2.4) million, an improvement from $(8.7) million in 2023 [10][27]. - The operating loss for the year was $(13.95) million, significantly reduced from $(44.93) million in 2023 [10][27]. - Net loss from continuing operations was $(15.5) million, down from $(54.7) million in the previous year [10][27]. Product Line Performance - Cigarette net revenues were $3.3 million in Q4 2024, down from $4.1 million in Q3 2024, despite an increase in carton volumes to 228 thousand from 156 thousand [7][11]. - Filtered cigars net revenues decreased to $0.8 million from $1.7 million, reflecting lower volumes due to completed orders under terminated contracts [7][11]. - VLN cigarette net revenues were $(0.1) million in Q4, impacted by rebates and marketing incentives [7][11]. Strategic Developments - The company launched new VLN branding, which is set for shipment in Q2 2025, including a new logo and marketing plan [6][10]. - A five-year expanded license and manufacturing agreement was signed with Smoker Friendly, covering 11 existing products and eight new premium products [6][10]. - The company is in discussions to secure additional VLN partner brands as part of the relaunch of its reduced nicotine content products [6][8]. Compliance and Market Position - The company announced compliance with the FDA's proposed new tobacco product standard for nicotine yield, with VLN being the only combustible cigarette that meets the new standard of a maximum nicotine level of 0.7 mg/g [6][10].

Core Insights - 22nd Century Group, Inc. is launching a 2025 growth strategy that leverages both internal and external brand assets across multiple categories, with a focus on their VLN® reduced nicotine products [1][4] - The company reported a challenging but transformative year in 2024, indicating a reset of nearly all business aspects and a focus on growth for 2025 [4] Financial Performance - For Q4 2024, net revenues decreased to $4.0 million from $5.9 million in Q3 2024, reflecting a 45.4% decline [6][10] - Gross profit for Q4 2024 was a loss of $1.3 million, compared to a loss of $0.6 million in the previous quarter [6][10] - Operating loss increased to $4.1 million in Q4 2024 from $3.4 million in Q3 2024, while net loss rose to $4.2 million from $3.6 million [6][10] - Adjusted EBITDA loss was $3.9 million, compared to a loss of $3.2 million in the previous quarter [6][10] Product Line Highlights - Cigarette net revenues were $3.3 million in Q4 2024, down from $4.1 million in Q3 2024, despite an increase in carton volumes to 228 thousand from 156 thousand [7][11] - Filtered cigars net revenues decreased to $0.8 million from $1.7 million in the previous quarter, attributed to lower volumes [7][11] - VLN® cigarette net revenues were $(0.1) million in Q4 2024, reflecting rebates and marketing incentives for products already in distribution [7][11] Strategic Developments - The company announced the first VLN® partner brand with Smoker Friendly, ready for shipment in Q2 2025, and is in discussions for additional partner brands [6][8] - A new five-year expanded license and manufacturing agreement was signed with Smoker Friendly, covering 11 existing products and eight new premium products [6][8] - The company has complied with the FDA's proposed new tobacco product standard for nicotine yield, with VLN® being the only combustible cigarette that meets the new standard of a maximum nicotine level of 0.7 mg/g [6][8]

MOCKSVILLE, N.C., March 14, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a tobacco products company that is leading the fight against nicotine by offering smokers a choice about their nicotine consumption, will host a webcast on Thursday, March 20, 2025, at 8:00 AM ET to discuss its 2024 fourth quarter and full year results, which are to be reported in a press release at 6:00 AM ET the same day. During the webcast, Larry Firestone, chairman and chief executive officer, and Dan Otto, chi ...