22nd Century Group Reports Q1 2025 Financial Results with Decreased Revenue and Improved Loss Metrics

22nd Century Group, Inc. reported its financial results for the first quarter of 2025, revealing a net revenue of $5.96 million, a decrease of 7.9% from $6.47 million in the same period last year. The company experienced a gross loss of $609,000, an improvement from a loss of $1.13 million in the prior year, attributed to a reduction in the cost of goods sold, which fell by 31.5% to $2.88 million. Operating expenses also decreased significantly to $1.96 million from $3.31 million, primarily due to lower sales, general, and administrative expenses, as well as reduced research and development costs.

The company’s operating loss from continuing operations was $2.57 million, a notable improvement from a loss of $4.43 million in the first quarter of 2024. The net loss for the quarter was $4.33 million, compared to a loss of $5.74 million in the previous year. The basic and diluted loss per share from continuing operations was $1.89, a substantial decrease from $230.82 in the prior year, reflecting the impact of the company's reverse stock splits implemented in late 2024.

In terms of operational metrics, 22nd Century Group sold 476 cartons in the first quarter of 2025, down from 628 cartons in the same period last year. The company noted that cigarette sales benefited from new customer contracts, while revenues from filtered cigars decreased significantly due to repricing strategies. The company continues to focus on its flagship reduced nicotine combustible cigarette, which has received FDA authorization as a Modified Risk Tobacco Product.

As of March 31, 2025, the company had cash and cash equivalents of $1.13 million, a decline from $4.42 million at the end of 2024. The working capital deficit from continuing operations was $5.20 million, compared to a positive working capital of $1.79 million at the end of the previous year. The company acknowledged substantial doubt about its ability to continue as a going concern, prompting management to explore various strategies for reducing expenses and raising additional funds through debt or equity securities.

Looking ahead, 22nd Century Group is actively pursuing financing strategies and evaluating options to improve liquidity. The company has also engaged in a warrant inducement offering, which is expected to generate additional capital. However, the management cautioned that if capital is not available when needed, it may have to liquidate inventory or seek protection under bankruptcy laws. The company remains committed to its strategic initiatives aimed at enhancing its market position in the tobacco industry.