22nd Century (US:XXII) Globenewswire·2025-11-04 11:00Core Insights - The company has achieved significant balance sheet improvement, becoming debt-free and receiving $9.5 million in non-dilutive cash from an insurance settlement [4][6][11] - The third quarter marks a strategic pivot towards a branded products strategy, with an increasing store count and new distribution agreements for VLN® products [2][4] - The company aims to lead the Tobacco Harm Reduction Movement by offering low nicotine products, aligning with FDA mandates [3][4] Financial Performance - Net revenues for Q3 2025 decreased slightly to $4.0 million from $4.1 million in Q2 2025, while gross profit showed a loss of $(1.1) million compared to $(0.6) million [6][12] - Operating expenses decreased to $2.2 million from $2.3 million, but operating loss increased to $3.2 million from $3.0 million [6][12] - Consolidated net income increased to $5.5 million, reflecting the $9.5 million insurance settlement, compared to a net loss of $3.4 million in the previous quarter [6][12] Product Line and Market Expansion - Cigarette net revenues were $2.5 million, down from $2.7 million, while VLN® cigarette revenues increased by $0.2 million due to initial stocking orders [7][12] - The company has expanded market access for VLN® and Partner VLN® brand launches, with state authorizations now including 45 states for 22nd Century VLN® and 38 states for Smoker Friendly VLN® [11][12] - The company is advancing plans for new product formats and international offerings, including a 100mm format for VLN® cigarettes [11][12] Balance Sheet and Cash Position - The company ended Q3 2025 with cash of $4.8 million and no outstanding debt, having extinguished $3.9 million of senior secured debt [6][12] - The recent insurance settlement has significantly improved the company's cash position, providing a solid foundation for future growth [4][6][12]