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Dec 31, 2020
22nd Century Group Q4 2020 Earnings Report
22nd Century Group's Q4 2020 financial results were announced, with net sales revenue consistent with the prior-year period and gross profit improving.
Key Takeaways
22nd Century Group reported net sales revenue of $7.3 million for Q4 2020, consistent with the prior-year period. The company's gross profit improved, while the net loss increased. The company is focused on securing Modified Risk Tobacco Product (MRTP) authorization for VLN® and advancing its hemp/cannabis strategy.
Net sales revenue for the fourth quarter was $7.3 million, consistent with the prior-year period.
Gross profit for the fourth quarter improved by $364 thousand.
Net loss increased by $207 thousand for the fourth quarter.
The company's balance sheet is well funded with $22.3 million at the end of the year.
22nd Century Group
22nd Century Group
Forward Guidance
22nd Century Group is focused on securing FDA authorization for VLN®, supporting the FDA’s plan to require all cigarettes sold in the U.S. to be made “minimally or non-addictive”, targeting the upstream segment of the cannabinoid value chain, developing a third, plant-based franchise after securing MRTP authorization for VLN®, and maintaining diligent financial execution.
Positive Outlook
- Securing FDA authorization for VLN®.
- Supporting the FDA’s plan to require all cigarettes sold in the U.S. be made “minimally or non-addictive”.
- Targeting the upstream segment of the cannabinoid value chain.
- Creating proprietary, commercially valuable new plant lines and related intellectual property with stabilized genetics to harness and optimize hemp/cannabis plant potential.
- The Company expects to monetize a portion of its existing hemp/cannabis IP in 2021 and will continue to bring disruptive technology forward.
Challenges Ahead
- No specific negative guidance was provided in the document.
- Forward-looking statements are subject to risks and uncertainties.
- Actual results might differ materially from those explicit or implicit in forward-looking statements.
- Important factors that could cause actual results to differ materially are set forth in “Risk Factors” in the Company’s Form 10-K filed on March 11, 2021.
- The Company assumes no obligation to and does not intend to update these forward-looking statements, except as required by law.