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Dec 31, 2023
22nd Century Group Q4 2023 Earnings Report
22nd Century Group reported a net revenue of $7.4 million and exited its hemp/cannabis operations to focus on tobacco harm reduction and contract manufacturing.
Key Takeaways
22nd Century Group reported a net revenue of $7.4 million for Q4 2023, a decrease from $10.0 million in the prior year period. The company exited its hemp/cannabis operations to focus on tobacco harm reduction and contract manufacturing. Operating loss was $14.2 million, and net loss was $22.1 million, or $0.66 per share.
Net revenue from continuing operations in Q4 2023 was $7.4 million.
Exited hemp/cannabis operations to fully focus on tobacco harm reduction and contract manufacturing activities.
Operating costs substantially reduced through efficiency initiatives and the hemp/cannabis business sale.
Initiatives commenced to increase sales, improve gross margin, and increase operating profit in 2024.
22nd Century Group
22nd Century Group
Forward Guidance
22nd Century Group expects continued sequential improvement in each quarter throughout 2024 and aims to break even by the first quarter 2025.
Positive Outlook
- Cash use has declined rapidly, from a peak run rate of approximately $15 million a quarter last year to less than $4 million projected in the first quarter of 2024
- Evaluate and profitably grow our contract manufacturing business to cover our operating expenses and mission critical initiatives around 22nd Century’s very low nicotine content cigarette technology.
- Invest in and grow the VLN® brand through sales and customer awareness.
- Capitalize on a positive regulatory and social environment.
- Believe that 22nd Century can break even by the first quarter 2025