Financial Performance - Net revenues increased approximately 50% sequentially to $6.0 million, compared to $4.0 million in the previous quarter[6] - Gross profit improved to $(0.6) million, a 46.1% increase from $(1.3) million[6] - Operating loss decreased to $2.6 million, down 42.0% from a net loss of $4.1 million[6] - Net loss decreased to $3.3 million, a 39.9% improvement from $4.2 million[6] - Adjusted EBITDA loss improved to $2.3 million, up 33.8% from a loss of $3.9 million[6] Revenue Breakdown - Cigarette net revenues were $5.0 million, increased from $3.3 million in the fourth quarter of 2024, with carton volumes rising to 319 thousand[11] - Filtered cigar net revenues increased to $1.1 million, compared to $0.8 million in the previous quarter[11] Debt and Liabilities - The company ended the first quarter 2025 with net debt of $3.4 million, reduced from approximately $4.6 million[11] - Total liabilities increased slightly to $17,833 million as of March 31, 2025, from $17,661 million at December 31, 2024[26] - Net total debt (Non-GAAP) rose to $3,425 million as of March 31, 2025, compared to $3,268 million at December 31, 2024[30] Asset Management - Total current assets decreased to $11,095 million as of March 31, 2025, from $11,522 million at December 31, 2024, a decline of 3.7%[26] Product Development and Regulatory Compliance - The launch of VLN Red expands the reduced nicotine content category for adult smokers, joining VLN Gold and Green[6] - Regulatory filings for VLN and partner brands were submitted in all 50 states, preparing for new product launches in 2025[6] Year-over-Year Comparison - Revenues for the three months ended March 31, 2025, were $5,956 million, down 7.9% from $6,469 million in the same period of 2024[27] - Gross loss improved to $(609) million in Q1 2025 from $(1,129) million in Q1 2024, reflecting a reduction in cost of goods sold[27] - Operating loss from continuing operations decreased to $(2,570) million in Q1 2025, compared to $(4,434) million in Q1 2024, showing a favorable variance of $1,864 million[27] - Net loss from continuing operations was $(3,274) million for Q1 2025, an improvement of $2,175 million compared to $(5,450) million in Q1 2024[29] - Adjusted EBITDA loss improved to $(2,319) million in Q1 2025 from $(3,500) million in Q1 2024, indicating a favorable variance of $1,181 million[29] - Basic and diluted loss per common share from continuing operations was $(1.89) for Q1 2025, compared to $(230.82) for Q1 2024[27] - The company reported a comprehensive loss of $(4,328) million for Q1 2025, down from $(5,739) million in Q1 2024[27]

Core Insights - 22nd Century Group, Inc. reported a significant sequential sales increase of approximately 50% in Q1 2025, driven by its growth strategy and new sales activities across various product categories [1][3][6] - The company is preparing for the launch of its first VLN partner brand shipments and has made regulatory filings for new products in all 50 states [1][6] - The financial results indicate a reduction in operating loss and net loss compared to the previous quarter, reflecting improved operational efficiency [6][10] Financial Performance - Net revenues for Q1 2025 reached $6.0 million, up from $4.0 million in Q4 2024, marking a 50% increase [6][10] - Gross profit improved to a loss of $(0.6) million from $(1.3) million, while operating expenses decreased to $2.0 million from $2.8 million [6][10] - The operating loss decreased to $(2.6) million from $(4.1) million, and net loss decreased to $(3.3) million from $(4.2) million [6][10] Product Developments - The company launched VLN Red, expanding its reduced nicotine content product line, which already includes VLN Gold and Green [6][12] - New partner branded VLN products are set to be launched, supported by marketing campaigns to enhance sales volumes [3][6] - Shipments of conventional products under a new agreement with Smoker Friendly have commenced, including the launch of Smoker Friendly Black Label cigarettes [6][12] Debt and Liquidity - As of the end of Q1 2025, the company reported net debt of $3.4 million, down from $4.6 million at the end of the previous quarter [6][12] - The company has successfully reduced its total debt by $3.7 million year-to-date while managing working capital needs [12][33]

Core Insights - 22nd Century Group, Inc. has successfully closed the sale of its Needle Rock Farms assets, generating net proceeds of approximately $770,000 after expenses, which will enhance its cash position [1][2] - The sale of these unused assets, previously related to the hemp cannabis business, allows the company to redeploy capital into its growth strategies for 2025, which are already showing positive results [2] - The company plans to report its complete first quarter results on May 13, 2025, along with a conference call on the same day [2] Company Overview - 22nd Century Group is a pioneering company in nicotine harm reduction within the tobacco industry, focusing on enabling smokers to control their nicotine consumption [3] - The flagship product, VLN cigarettes, contains 95% less nicotine than traditional cigarettes and has been proven to significantly reduce nicotine consumption [4] - The company operates a 60,000 square foot manufacturing facility in Mocksville, North Carolina, with the capacity to produce over 45 million cartons of combusted tobacco products annually [5] Technology and Innovation - The proprietary reduced nicotine tobacco blends are developed using patented technologies that regulate nicotine biosynthesis in the tobacco plant, ensuring full flavor and high yield with significantly lower nicotine content [6] - The extensive patent portfolio positions the company as the sole provider of low nicotine combustible cigarettes in the United States and key international markets [6]

Core Insights - 22nd Century Group has successfully reduced its total debt by approximately $3.8 million, bringing the total debt principal outstanding to around $3.9 million [1][2] - The CEO, Larry Firestone, highlighted that total debt obligations have decreased from approximately $20 million to less than $4 million since he joined the company in December 2023, indicating a strong focus on becoming debt-free [2] - The company plans to report its complete first quarter results on May 13, 2025, along with a conference call on the same day [2] Company Overview - 22nd Century Group is a pioneering company in the tobacco industry focused on nicotine harm reduction, enabling smokers to control their nicotine consumption [3] - The company has developed its flagship product, the VLN cigarette, which contains 95% less nicotine than traditional cigarettes, aiming to provide smokers with a familiar alternative that helps them manage their nicotine intake [4][6] - The company operates a 60,000 square foot facility in Mocksville, North Carolina, capable of producing over 45 million cartons of combusted tobacco products annually, with potential for expansion [5] Product and Technology - The proprietary reduced nicotine tobacco blends are created using patented technologies that regulate nicotine biosynthesis in the tobacco plant, ensuring full flavor and high yield with significantly lower nicotine content [6] - The extensive patent portfolio positions the company as the sole provider of low nicotine combustible cigarettes in the United States and key international markets [6]

MOCKSVILLE, N.C., May 05, 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 Tuesday, May 13, 2025, at 8:00 AM ET to discuss its 2025 first quarter 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, chief financial officer ...

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 ...

Core Insights - 22nd Century Group, Inc. has announced the execution of two new agreements to supply filtered cigar products, expanding its customer partnerships and production capabilities [1][3][4] Group 1: Business Expansion - The company is increasing production of filtered cigars, with initial shipments expected in Q2 2025, targeting an annual volume of 500,000 cartons or more [2] - The new agreements are designed to provide gross margin and consistent volume, reinforcing the company's core CMO business [3] - These agreements build on previous momentum from Q3 2024, indicating a strategic focus on expanding the footprint of its VLN brand through established retail channels [4] Group 2: Product Offering - The flagship product, VLN cigarettes, contains 95% less nicotine than traditional cigarettes, aiming to help smokers control their nicotine consumption [5][7] - The proprietary reduced nicotine tobacco blends are developed using patented technologies, ensuring a unique position in the market with the only low nicotine combustible cigarette in the U.S. and critical international markets [7] Group 3: Manufacturing Capabilities - The company operates a 60,000 square foot facility in Mocksville, North Carolina, capable of producing over 45 million cartons of combustible tobacco products annually, with room for expansion [6]

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 ...

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 ...

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]