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22nd Century Group, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in net revenues to $5,946,000 from $7,871,000 in the same quarter the previous year. This decrease is attributed to lower sales volumes in contract manufacturing and VLN® products.
Gross profit for the quarter was a loss of $588,000, compared to a profit of $77,000 in the previous year, primarily due to lower sales volume and changes in product mix.
Operating expenses decreased significantly to $2,789,000 from $8,330,000, driven by reductions in compensation, strategic consulting, and public company expenses.
The company reported an operating loss from continuing operations of $3,377,000 for the quarter, compared to a loss of $8,253,000 in the previous year.
Net loss from continuing operations was $3,585,000, down from $8,081,000 in the previous year. Basic and diluted loss per common share from continuing operations was $0.27, compared to $6.70 in the prior year.
Cash used in operating activities for the nine months ended September 30, 2024, was $9,947,000, a decrease from $50,184,000 in the same period the previous year, reflecting lower net losses and changes in working capital.
The company had cash and cash equivalents of $5,341,000 as of September 30, 2024, and a working capital of $1,568,000, compared to a deficit of $6,826,000 at the end of 2023.
The filing also details the company's efforts to improve liquidity through cost-cutting measures and various equity and debt financing activities.
22nd Century Group acknowledges substantial doubt about its ability to continue as a going concern, citing significant losses and negative cash flows from operations.
The company is pursuing strategies to reduce expenses and raise additional funds through securities issuance, asset sales, and strategic partnerships.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the 22nd Century Group Inc quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.