22nd Century Group, Inc. Q1 FY2026 earnings call

2025 was a transition year from restructuring to focusing on growth. Closed legacy issues, unprofitable contracts and product lines, reduced manufacturing overhead, and paid off debt. Launched new brands and products, VLN products in 23 states with 1,636 retail outlets. FDA's low nicotine proposed rule cited company's products. 2026 plans include expanding distribution in Northeast, other states, and California; launching Pinnacle Pure; adding headcount for product launches and marketing; team's hard work in transitioning and building growth foundation.

For the fourth quarter of 2025, net revenue was approximately $3.6 million compared with $4 million in the third quarter of 2025. Total cartons shipped during the quarter were approximately 248,000 compared with 517,000 cartons in the third quarter. For the full year 2025, net revenues were approximately $17.6 million compared with $24.4 million in 2024. Gross profit for the fourth quarter improved sequentially with a gross loss of approximately $0.8 million compared with a $1.1 million gross loss in the third quarter 2025. Operating loss for the fourth quarter was $2.8 million compared with $3.2 million in the third quarter. Net loss from continuing operations for the fourth quarter was approximately $2.8 million compared with $3.8 million in the third quarter. Adjusted EBITDA for the fourth quarter was $2.4 million compared with $2.9 million in the third quarter of 2025. For the full year 2025, net loss from continuing operations was approximately $13.1 million, improved from $15.5 million in 2024. Ended the year with approximately $7.1 million in cash and cash equivalents, zero long-term debt, and inventory increased to approximately $4.3 million in the fourth quarter of 2025.

2026 is the new beginning. Anticipate increasing current store count by more than double by end of 2026. Revenue consistent in first quarter 2026, then grow sequentially with added distribution. 2026下半年 will expand distribution and retail adoption. Recently closed additional financing round with over $10 million in cash to support strategy.

Forward-looking statements subject to risks and uncertainties affecting actual results. FDA regulatory decision uncertainty. International market promotion challenges. Competition from other tobacco companies. Impact of politics, financial power, and taxes on low-nicotine product promotion.