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

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$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].