22nd Century Group Q4 2022 Net Revenue Grows 141.3% YoY, What About Profit?

22nd Century Group, Inc. XXII net revenue for the Q4 2022 was $19.2 million, an increase of 141.3% from $8 million in Q4 2021.

Q4 2022 Financial Highlights

• Gross loss was $646,000, an unfavorable decrease of 379.7% compared to gross profit of $231,000 in the prior year period.

• Net loss was $26.3 million, compared to prior year $14.0 million, representing a net loss per share of $0.12.

• Adjusted EBITDA was a loss of $13.9 million, compared to prior year $7.5 million.

• As of December 31, 2022, the company had $21.2 million in cash, cash equivalents, and short-term investment securities.

“The fourth quarter and 2022 were transformative for 22nd Century as we launched an aggressive commercial rollout of our FDA authorized VLN reduced nicotine content cigarettes and accelerated revenue and margin growth opportunities with our hemp/cannabis business unit,” stated James A. Mish, CEO of 22nd Century Group.

“In our hemp/cannabis business, we achieved approximately 19% quarterly revenue growth in spite of the disruptions from the Grass Valley fire, cementing our leadership position in the growing cannabinoid ingredients and cannabinoid infused consumer products market. As a key part of our continued expansion in 2023, we are currently finalizing multiple innovative CDMO+D license agreements with consumer CBD brands to become their fully verticalized manufacturing and distribution partner, further entrenching our industry leadership. This new-to-the-industry approach will use our entire value chain from ingredients to finished white label goods, and now category management to the retail shelf.

“Additionally, our Prineville crude extraction plant will be online in this month, supporting these contracts and the growing demand for our quality CBD isolates, distillates and minor cannabinoids, plus significantly increasing our gross margin. The submission of the drug master file to the FDA to produce and supply APIs for the medical and pharmaceutical industries positions 22nd Century as a leading, global provider of high-quality formulated products that meet the exacting standards required by pharmaceutical and consumer product companies. Finally, our new distribution facility in the Netherlands and recent accretive acquisition of RX Pharmatech Ltd will accelerate the growth of GVB’s business in the European Union and United Kingdom, complementing our growth strategies in North America,” concluded Mish.

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