22nd Century CEO & Chairman Larry Firestone Provides 2025 Year-in-Review Letter to Stockholders

Core Insights - 2025 was a pivotal year for 22nd Century Group, marking the end of a multi-year restructuring and the beginning of strategic initiatives aimed at strengthening its leadership in tobacco harm reduction [1][5] Tobacco Harm Reduction - The company is committed to leading the tobacco harm reduction movement through science-based innovation and responsible commercialization of reduced nicotine content combustibles [2] - The proprietary VLN reduced-nicotine cigarette platform is the only combustible cigarette authorized by the FDA as a Modified Risk Tobacco Product, containing approximately 95% less nicotine than conventional cigarettes [3][9] Consumer Feedback and Market Response - Early feedback from consumers indicates positive reception of VLN products, with some reporting significant reductions in cigarette consumption, including one individual who reduced consumption by approximately 66% in just 12 weeks [4] Strategic and Operational Progress - The company has made significant progress in executing its strategic priorities, focusing on sustainable profitability and improving its long-term financial outlook [5] - Transitioning to higher-margin branded products, expanding VLN product distribution to nearly 2,000 retail locations across over 20 states, and implementing cost-reduction initiatives have contributed to operational efficiency [7] Regulatory Landscape - The FDA proposed a rule to establish a maximum nicotine content for cigarettes, which could reshape the combustible tobacco market and aligns with the company's focus on reduced-nicotine products [8] - The VLN products are specifically designed to meet low nicotine thresholds, supported by scientific research and FDA authorization, highlighting the strategic relevance of the company's harm-reduction platform [9] Outlook for 2026 - As the company enters 2026, it aims to leverage regulatory momentum, consumer awareness, and its differentiated product portfolio to create long-term value [10]