22nd Century Group Reports Fourth Quarter and Full Year 2024 Financial Results

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]