Company: XXII
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001558370-25-007482
Chunk: 16

Company: 22nd Century Group, Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 2
Chunk 16
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 actual results to differ materially are set forth in “Risk Factors” in our Annual Report on Form 10-K filed on March 20, 2025. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as otherwise required by law. All information provided in this quarterly report is as of the date hereof, and we assume no obligation to and do not intend to update these forward-looking statements, except as required by law.

Our Business

22nd Century Group, Inc. (NASDAQ: XXII) is an agricultural biotechnology company focused on tobacco harm reduction by offering tobacco products with 95% less nicotine, designed to improve health and wellness by giving smokers a choice to control their nicotine consumption.  Backed by comprehensive and extensively patented technologies that regulate nicotine biosynthesis activities in the tobacco plant, the Company has pioneered development of high-yield, proprietary reduced nicotine content (RNC) tobacco plants and clinically validated RNC cigarette products. The Company received the first and only FDA Modified Risk Tobacco Product (MRTP) authorization for a combustible cigarette in December 2021. The Company is a subsequent participating manufacturer under the Master Settlement Agreement ("MSA") and vertically integrated for the production of its both own products and contract manufacturing operations ("CMO"), which consist primarily of branded filtered cigars and conventional cigarettes. 

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Financial Overview 

●Net revenues for the first quarter of 2025 were $5,956, a decrease of 7.9% from $6,469 in the prior year period.

oFirst quarter 2025 cartons sold of 476 compared to 628 in the comparable prior year period.  

●Gross profit for the first quarter of 2025 was a loss of $609 compared to a loss of $1,129 in the prior year period. 

●Total operating expenses for the first quarter of 2025 decreased to $1,961 compared to $3,305 in the prior year quarter driven by: