22nd Century (XXII) - 2025 Q2 - Quarterly Results

Financial Performance - Net revenues for Q2 2025 decreased to $4.1 million, down 48.6% from $7.9 million in Q2 2024[11] - Total product line revenues for the first half of 2025 were $10.0 million, down 30.4% from $14.4 million in the same period of 2024[11] - Total revenues for Q2 2025 were $4,083, a decrease of 48.6% compared to $7,947 in Q2 2024[27] - Gross loss for Q2 2025 was $635, compared to a gross profit of $570 in Q2 2024, indicating a shift in profitability[27] - Net loss from continuing operations for Q2 2025 was $3,296, compared to a net loss of $2,214 in Q2 2024, reflecting a worsening financial position[27] - Adjusted EBITDA for Q2 2025 was $(2,640), slightly worse than $(2,589) in Q2 2024[29] Operating Loss and Debt Management - Operating loss increased to $3.0 million, compared to $2.6 million in the previous quarter, reflecting a 45.6% increase[6] - Adjusted EBITDA loss was $2.6 million, compared to a loss of $2.3 million in the previous quarter[6] - Operating loss from continuing operations for the first half of 2025 was $5,552, an improvement from a loss of $6,481 in the same period of 2024[27] - The company reduced total debt by $1.0 million, bringing total debt to $3.8 million[6] - Net total debt (Non-GAAP) as of June 30, 2025, was $707, significantly reduced from $3,268 at the end of 2024[30] Product Development and Market Expansion - VLN® product state authorizations expanded significantly, with 44 states for VLN® products and 30 states for partner VLN® products[6] - The company announced the launch of Pinnacle VLN® products in almost 1,000 stores across 12 states, with sales expected to begin on September 1, 2025[6] - The company is advancing a 100mm VLN® reduced nicotine content cigarette prototype, targeting FDA submission in Q4 2025[6] Asset and Liability Management - Total current assets increased to $11,868 as of June 30, 2025, up from $11,522 at the end of 2024[26] - Total liabilities decreased to $16,753 as of June 30, 2025, down from $17,661 at the end of 2024[26] - Cash and cash equivalents decreased to $3,083 as of June 30, 2025, from $4,422 at the end of 2024[26] Strategic Focus - The company is focusing on profitable growth with its branded products leading the way, supported by increased distribution and partner brands[3]