22nd Century Group (XXII) Q1 2025 Earnings Call May 13, 2025 08:00 AM ET Company Participants Matt Kreps - Investor RelationsLarry Firestone - CEO & Chair of the BoardDan Otto - CFO Conference Call Participants Andrew White - Analyst Operator Welcome to twenty second Century Group's First Quarter twenty twenty five Conference Call and Webcast. At this time, all participants have been placed in a listen only mode. It is now my pleasure to turn the floor over to Matt Kreps, Investor Relations for twenty secon ...

22nd Century Group (XXII) Q1 2025 Earnings Call May 13, 2025 08:00 AM ET Speaker0 Welcome to twenty second Century Group's First Quarter twenty twenty five Conference Call and Webcast. At this time, all participants have been placed in a listen only mode. It is now my pleasure to turn the floor over to Matt Kreps, Investor Relations for twenty second Century Group. Please begin. Speaker1 Hello and welcome to twenty second Century's first quarter twenty twenty five results conference call. Joining me today a ...

Core Insights - 22nd Century Group, Inc. reported a significant sequential sales increase of approximately 50% in Q1 2025, driven by its growth strategy and new sales activities across various product categories [1][3][6] - The company is preparing for the launch of its first VLN partner brand shipments and has made regulatory filings for new products in all 50 states [1][6] - The financial results indicate a reduction in operating loss and net loss compared to the previous quarter, reflecting improved operational efficiency [6][10] Financial Performance - Net revenues for Q1 2025 reached $6.0 million, up from $4.0 million in Q4 2024, marking a 50% increase [6][10] - Gross profit improved to a loss of $(0.6) million from $(1.3) million, while operating expenses decreased to $2.0 million from $2.8 million [6][10] - The operating loss decreased to $(2.6) million from $(4.1) million, and net loss decreased to $(3.3) million from $(4.2) million [6][10] Product Developments - The company launched VLN Red, expanding its reduced nicotine content product line, which already includes VLN Gold and Green [6][12] - New partner branded VLN products are set to be launched, supported by marketing campaigns to enhance sales volumes [3][6] - Shipments of conventional products under a new agreement with Smoker Friendly have commenced, including the launch of Smoker Friendly Black Label cigarettes [6][12] Debt and Liquidity - As of the end of Q1 2025, the company reported net debt of $3.4 million, down from $4.6 million at the end of the previous quarter [6][12] - The company has successfully reduced its total debt by $3.7 million year-to-date while managing working capital needs [12][33]