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22nd Century Group Inc (XXII-2.35%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing details the company's financial performance, highlighting a net revenue of $24,382,000, which represents a decrease from $32,204,000 in the previous year. This decline is attributed primarily to a decrease in volumes of filtered cigars and export cigarettes.
The company reported a gross loss of $2,400,000 for the year, compared to a gross loss of $8,696,000 in 2023. The improvement is largely due to cost-cutting initiatives and a shift in product mix.
Operating expenses for the year were $11,550,000, a decrease from $36,235,000 in the previous year. This reduction was driven by lower sales, general, and administrative expenses, and a decrease in research and development costs.
Net loss from continuing operations was $15,495,000, compared to a net loss of $54,686,000 in 2023. The decrease in net loss is attributed to lower operating expenses and improved gross margins.
The company has faced challenges with liquidity and capital resources, reporting cash and cash equivalents of $4,422,000 as of December 31, 2024. There is substantial doubt about the company's ability to continue as a going concern.
In response to liquidity concerns, management is evaluating strategies for reducing expenses and pursuing financing through the issuance of securities, asset sales, and strategic partnerships.
The filing also discusses the divestiture of the GVB hemp/cannabis business, which was completed on December 22, 2023. The company recognized a loss on disposal of $58,521,000 related to this divestiture.
The company continues to focus on its tobacco business, with plans to expand the availability of its proprietary VLN® cigarettes, which contain reduced nicotine content.
22nd Century Group Inc has faced litigation matters, including shareholder derivative cases and class action lawsuits. The company has settled some of these cases, with settlement amounts covered by insurance.
The company has implemented restructuring efforts to align its organizational structure with strategic objectives, resulting in cost savings and improved efficiency.
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 annual 10-K report dated March 20, 2025. To report an error, please email earnings@qz.com.