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XXII

22nd Century Group, Inc.

XXII

22nd Century Group, Inc. • NASDAQ
$1.06 ▲ 1.92% (+0.02)
Market Cap $2.65 M
52w High $326.02
52w Low $0.78
Dividend Yield 0%
P/E 0
Volume 222.43K
Outstanding Shares 2.50M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $4.011M ▲ $2.153M ▼ $5.489M ▲ 136.849% ▲ $-1.06 ▲ $-3.01M ▼
Q2-2025 $2.228M ▼ $2.346M ▲ $-3.407M ▲ -152.917% ▲ $-313.03 ▼ $-2.675M ▼
Q1-2025 $2.275M ▲ $1.961M ▼ $-4.328M ▲ -190.242% ▲ $-57.5 ▼ $-2.425M ▲
Q4-2024 $1.841M ▼ $2.839M ▲ $-4.556M ▼ -247.474% ▼ $0 ▲ $-3.671M ▼
Q3-2024 $2.514M $2.789M $-3.757M -149.443% $-1.708K $-2.962M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $4.846M ▲ $32.367M ▲ $11.263M ▼ $21.104M ▲
Q2-2025 $3.083M ▲ $22.383M ▲ $16.753M ▼ $5.63M ▲
Q1-2025 $1.133M ▼ $21.458M ▼ $17.833M ▲ $3.625M ▼
Q4-2024 $4.422M ▼ $21.673M ▼ $17.661M ▼ $4.012M ▲
Q3-2024 $5.341M $26.178M $22.706M $3.472M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-3.763M ▼ $-4.018M ▼ $-522K ▼ $6.303M ▲ $1.763M ▼ $-4.024M ▼
Q2-2025 $-3.296M ▲ $-3.478M ▼ $731K ▲ $4.697M ▲ $1.95M ▲ $-3.507M ▼
Q1-2025 $-4.328M ▲ $-2.976M ▲ $-59K ▼ $-254K ▼ $-3.289M ▼ $-3.035M ▲
Q4-2024 $-4.556M ▼ $-4.398M ▼ $-20K ▲ $3.499M ▼ $-919K ▼ $-4.418M ▼
Q3-2024 $-3.585M $-2.977M $-70K $7.109M $4.062M $-3.047M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Cigarettes
Cigarettes
 $10.00M ▲$10.00M ▲$0 ▼$0 ▲
Contract Manufacturing
Contract Manufacturing
 $10.00M ▲$10.00M ▲$0 ▼$0 ▲
Filtered Cigars
Filtered Cigars
 $0 ▲$0 ▲$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has stayed very small for years, and the company has not yet shown an ability to scale sales meaningfully. Gross profit has hovered around break‑even or slightly negative, which suggests weak pricing power or high unit costs at current volumes. Operating losses have been persistent and sizable relative to revenue, indicating that the business is still in a heavy investment and build‑out phase rather than a mature, profitable stage. Net losses have widened over time, and earnings per share have deteriorated sharply, partially amplified by repeated reverse stock splits. Overall, the income statement reflects a company with an interesting technology but no proven, self‑sustaining business model yet.

Balance Sheet

Balance Sheet The balance sheet is light and fragile. Total assets are modest and have shrunk from earlier years, which limits financial flexibility. Cash on hand has been minimal in the historical data, implying reliance on external funding and one‑off events to keep operations going. Debt appeared in recent years but, according to the newer commentary, the company has since become debt‑free, helped by an insurance settlement—this improves solvency but does not remove the need to grow the core business. Shareholders’ equity swung from positive to slightly negative and then back toward flat, reflecting accumulated losses and capital restructurings. Multiple large reverse splits highlight past pressure on the share price and the need to preserve listing status.

Cash Flow

Cash Flow Operating cash flow has been consistently negative, showing that the company’s day‑to‑day operations consume cash rather than generate it. Free cash flow has tracked operating cash flow closely, which means there is little room for discretionary investment beyond what is funded by new capital or special inflows. Capital spending has been kept low, suggesting tight control of investment or limited capacity to spend, rather than aggressive expansion. The recent insurance settlement and removal of debt improve near‑term liquidity on paper, but the underlying pattern is still one of a business that must bridge the gap between cash burn and eventual commercial scale.

Competitive Edge

Competitive Edge Strategically, the company occupies a unique niche: it focuses on ultra‑low‑nicotine tobacco, backed by patented plant biotechnology and specialized breeding know‑how. The FDA’s modified‑risk authorization for VLN cigarettes is a meaningful differentiator, creating a regulatory moat that larger rivals do not currently share in combustible products. If the proposed federal rule to cap nicotine levels in cigarettes advances, 22nd Century’s technology and regulatory head start could become more valuable. At the same time, the firm is tiny compared with global tobacco majors, with limited marketing muscle, distribution reach, and financial resources. Its contract manufacturing partnerships help build scale and relationships, but bargaining power likely rests with larger counterparties. Overall, the company has a distinctive angle but competes from a position of financial and operational weakness versus entrenched giants.

Innovation and R&D

Innovation and R&D Innovation is the centerpiece of the story. Over many years, 22nd Century has developed proprietary methods to sharply reduce nicotine in tobacco plants, supported by a sizable patent portfolio. This science underpins the VLN product line and gives the firm technology it could potentially license if regulation tightens. The company also continues exploring new plant traits and product formats, including additional VLN variants and possible international applications. The regulatory wins and body of scientific evidence around reduced‑nicotine products reinforce the credibility of its R&D. However, the long timelines, uncertain patent life, and ongoing need for investment mean that innovation is both the main asset and a continual financial burden, especially for a company of this small scale.

Summary

22nd Century Group combines an ambitious scientific and regulatory strategy with a very constrained financial base. The core idea—using plant biotechnology to deliver very low‑nicotine cigarettes within a favorable regulatory framework—is differentiated and could benefit if U.S. rules tighten around nicotine content. Partnerships and contract manufacturing offer practical ways to get products on shelves and earn revenue from existing facilities. On the other hand, the historical financials show minimal revenue, persistent losses, negative cash flow, and a thin, stressed balance sheet, partly masked by recent one‑off improvements and repeated reverse splits. The company’s future hinges on its ability to convert its regulatory and technological edge into sustainable, scalable commercial results before funding constraints or competitive responses from much larger tobacco companies erode its window of opportunity.

NEWS

November 26, 2025 · 10:21 AM UTC

Emerging Growth Research Releases Q3 2025 Update Report on 22nd Century Group

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November 4, 2025 · 6:00 AM UTC

22nd Century Group Reports Third Quarter 2025 Financial Results

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October 28, 2025 · 5:07 PM UTC

22nd Century Announces Receipt of $9.5 Million from Settlement of Insurance Claim

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October 23, 2025 · 7:45 AM UTC

22nd Century Launches VLN® with Major C-Store Chain, New Marketing Collateral, Continues to Expand State Authorizations

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October 21, 2025 · 8:00 AM UTC

22nd Century Group to Announce Third Quarter 2025 Results on November 4, 2025

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