22nd Century (US:XXII)2020-05-07 13:43Financial Data and Key Metrics Changes - First quarter revenue increased by 12% year-over-year, reaching $7.1 million, driven by steady sales and contract manufacturing cigarettes [11][27] - Operating loss improved by 23% to $4.1 million compared to a loss of $5.4 million in the prior year, primarily due to reduced operating expenses [11][28] - Net loss for the first quarter was $4 million, or a loss per share of $0.03, compared to a net loss of $2.1 million or a loss per share of $0.02 for Q1 2019 [28] - Adjusted EBITDA improved by approximately 30% to negative $3.2 million, or negative $0.02 per share, compared to negative $4.6 million, or negative $0.04 per share in Q1 2019 [29] - Cash used in operating activities was approximately $4.7 million, flat year-on-year, with liquidity remaining strong at approximately $34 million [30] Business Line Data and Key Metrics Changes - The company’s focus is on VLN cigarettes and the MRTP application, with significant progress made in the FDA review process [12][17] - The company has successfully completed research field trials validating new non-GMO methodologies for reducing nicotine in tobacco plants, with potential to reduce nicotine levels by up to 99% [18][19] Market Data and Key Metrics Changes - The company is exploring international markets for VLN, where non-GMO products are preferred by consumers [20] - The legal hemp/cannabis space is a growing focus, with strategic partnerships established to enhance R&D capabilities [21][25] Company Strategy and Development Direction - The company is in the final action stage of its MRTP application with the FDA, which is crucial for marketing and advertising claims [12][17] - Continued emphasis on R&D in both tobacco and hemp/cannabis sectors, aiming to create strong shareholder returns [25] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the impact of COVID-19 but emphasizes minimal disruption to operations and a strong financial position [8][30] - The FDA's recent announcement regarding the public comment period for the MRTP application is viewed as a positive sign for future outcomes [15] Other Important Information - The company has maintained a work-from-home policy for corporate employees while ensuring the production facility remains operational [9][10] - The partnership with KeyGene and investment in Panacea are expected to accelerate growth in the legal hemp/cannabis market [21][25] Q&A Session Summary - The call concluded without a Q&A session, as indicated by the operator's closing remarks [34]