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 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From ________ to ________ Commission File Number: 001-36338 22nd Century Group, Inc. (Exact name of registrant as specified in its charter) (State or other jur ...

Financial Performance - Net revenues increased approximately 50% sequentially to $6.0 million, compared to $4.0 million in the previous quarter[6] - Gross profit improved to $(0.6) million, a 46.1% increase from $(1.3) million[6] - Operating loss decreased to $2.6 million, down 42.0% from a net loss of $4.1 million[6] - Net loss decreased to $3.3 million, a 39.9% improvement from $4.2 million[6] - Adjusted EBITDA loss improved to $2.3 million, up 33.8% from a loss of $3.9 million[6] Revenue Breakdown - Cigarette net revenues were $5.0 million, increased from $3.3 million in the fourth quarter of 2024, with carton volumes rising to 319 thousand[11] - Filtered cigar net revenues increased to $1.1 million, compared to $0.8 million in the previous quarter[11] Debt and Liabilities - The company ended the first quarter 2025 with net debt of $3.4 million, reduced from approximately $4.6 million[11] - Total liabilities increased slightly to $17,833 million as of March 31, 2025, from $17,661 million at December 31, 2024[26] - Net total debt (Non-GAAP) rose to $3,425 million as of March 31, 2025, compared to $3,268 million at December 31, 2024[30] Asset Management - Total current assets decreased to $11,095 million as of March 31, 2025, from $11,522 million at December 31, 2024, a decline of 3.7%[26] Product Development and Regulatory Compliance - The launch of VLN Red expands the reduced nicotine content category for adult smokers, joining VLN Gold and Green[6] - Regulatory filings for VLN and partner brands were submitted in all 50 states, preparing for new product launches in 2025[6] Year-over-Year Comparison - Revenues for the three months ended March 31, 2025, were $5,956 million, down 7.9% from $6,469 million in the same period of 2024[27] - Gross loss improved to $(609) million in Q1 2025 from $(1,129) million in Q1 2024, reflecting a reduction in cost of goods sold[27] - Operating loss from continuing operations decreased to $(2,570) million in Q1 2025, compared to $(4,434) million in Q1 2024, showing a favorable variance of $1,864 million[27] - Net loss from continuing operations was $(3,274) million for Q1 2025, an improvement of $2,175 million compared to $(5,450) million in Q1 2024[29] - Adjusted EBITDA loss improved to $(2,319) million in Q1 2025 from $(3,500) million in Q1 2024, indicating a favorable variance of $1,181 million[29] - Basic and diluted loss per common share from continuing operations was $(1.89) for Q1 2025, compared to $(230.82) for Q1 2024[27] - The company reported a comprehensive loss of $(4,328) million for Q1 2025, down from $(5,739) million in Q1 2024[27]

Sales Increase Approximately 50% Sequentially as 2025 Growth Strategy Drives New Sales Activity with Both Internal and External Brand Assets Across Multiple Categories Preparing First VLN® Partner Brand Shipments with Smoker Friendly and Others Filings Made for New Reduced Nicotine Content and Conventional Product Authorizations in All 50 States Launch of Smoker Friendly Black Label – Tobacco and Water natural style cigarettes MOCKSVILLE, N.C., May 13, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (N ...

Further Strengthens Balance Sheet Cash Position MOCKSVILLE, N.C., May 08, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a tobacco products company that is leading the fight against nicotine dependence and believes smokers should have a choice about their nicotine consumption, today announced closing of the sale of its Needle Rock Farms assets with net proceeds of approximately $770,000 after expenses. “The sale of unused assets such as Needle Rock Farms which was related to the hemp cann ...

Year to Date Total Debt Reduction of approximately $3.8 Million MOCKSVILLE, N.C., May 07, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a tobacco products company that is leading the fight against nicotine dependence and believes smokers should have a choice about their nicotine consumption, today announced that has repaid an additional $1 million in debt to its senior lender. The Company's total debt principal outstanding now stands at approximately $3.9 million. "Our debt reduction pro ...

MOCKSVILLE, N.C., April 17, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a tobacco products company that is leading the fight against nicotine and believes smokers should have a choice about their nicotine consumption, (the “Company”) has released the following notice according to THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF NEW YORK: UNITED STATES DISTRICT COURTFOR THE WESTERN DISTRICT OF NEW YORK IN RE 22ND CENTURY GROUP, INC. DERIVATIVE LITIGATIONLead Case No. 1:19-cv ...

MOCKSVILLE, N.C., April 09, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a tobacco products company that is leading the fight against nicotine by offering smokers a choice about their nicotine consumption, today announced execution of two new agreements from former customers to supply their filtered cigar products. As part of our expanding customer partnerships, 22nd Century Group is increasing production of filtered cigars. Initial shipments are expected in the second quarter of 2025, ...

Corporate Update Letter Highlights Plans to Begin Profitable Growth Phase in 2025 on Expansion of Rebranded VLN® Cigarette Products MOCKSVILLE, N.C., April 08, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a tobacco products company that is leading the fight against nicotine by offering smokers a choice about their nicotine consumption, today issued the following letter to stockholders from Larry Firestone, the Chief Executive Officer of 22nd Century Group, Inc.: A Letter to Our Sharehol ...

Corporate Update Letter Highlights Plans to Begin Profitable Growth Phase in 2025 on Expansion of Rebranded VLN® Cigarette Products MOCKSVILLE, N.C., April 08, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (NASDAQ:XXII), a tobacco products company that is leading the fight against nicotine by offering smokers a choice about their nicotine consumption, today issued the following letter to stockholders from Larry Firestone, the Chief Executive Officer of 22nd Century Group, Inc.: A Letter to Our Sharehold ...