22nd Century (XXII) - 2025 Q1 - Quarterly Results

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 $(0.6) million, a 46.1$(1.3) million[6] - Operating loss decreased to $2.6 million, down 42.0$4.1 million[6] - Net loss decreased to $3.3 million, a 39.9$4.2 million[6] - Adjusted EBITDA loss improved to $2.3 million, up 33.8$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$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]