22nd Century Group, Inc. (NASDAQ:XXII) reported results for the first quarter ended March 31, 2022.. The company will host a live audio webcast on May 5, at 10:00 a.m. ET.
First Quarter 2022 Financial Results
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Net loss was $8.9 million, representing a net loss per share of $(0.05), comparing to net loss of $5.03 million in the same period of 2021.
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Net sales for the first quarter of 2022 were $9.0 million, an increase of 33% from 2021.
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Gross profit for the first quarter was $0.5 million, compared to $0.6 million in the prior year first quarter.
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Total operating expenses for the first quarter 2022 increased to $8.6 million compared to $5.8 million in the prior year quarter, driven by:
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Sales, general and administrative expenses increased by $2.5 million compared to the prior year period.
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Research and development expense for the first quarter 2022 increased by $0.3 million compared to the prior year comparable period, driven by costs associated with the company’s hemp/cannabis research programs. The company’s R&D investments are expected to grow in future quarters as the company continues to advance and accelerate the development of new, highly-differentiated hemp/cannabis plants and expands its R&D efforts in hops.
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Operating loss for the first quarter 2022 was $(8.1) million, compared to $(5.2) million in the prior year period.
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As of March 31, 2022, the company had $38.6 million in cash, cash equivalents and short-term investment securities.
Corporate Business Highlights
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Dr. Calvin Treat will join the company as its chief scientific officer, effective May 23, 2022, further enhancing 22nd Century’s deep expertise in plant-based biotechnology across all three of its plant franchises. Dr. Treat has led global plant biotechnology programs at Bayer (OTCPK:BAYRY) and Monsanto, including corn, soybean, and cotton crop improvement technologies.
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Company CEO James A. Mish was appointed to 22nd Century Group’s board of directors.
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New research coverage of the Company was initiated by Brian Wright, a leading agricultural technology analyst at Roth Capital Partners.
James A. Mish, chief executive officer of 22nd Century Group, stated: “We are off to an exciting start with our VLN reduced nicotine content cigarette pilot launch at more than 150 Chicagoland Circle K stores. The recently proposed menthol cigarette ban by the FDA could leave our VLN Menthol King reduced nicotine cigarettes as the only menthol cigarette on the market, helping adult menthol smokers find an off-ramp from nicotine addiction. Early sales in our Chicago pilot affirm the importance of this approach, with sales of VLN Menthol King already selling ahead of non-menthol in pilot stores. We fully anticipate an even more favorable regulatory environment as the FDA continues to advance the agency’s comprehensive plan, which includes requiring all cigarettes to be ‘minimally or non-addictive,’ a standard our VLN King and VLN Menthol King cigarettes already meet.
Photo: Courtesy of 22nd Century Group, Inc.
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