Tue, May 13, 10:31 AM (39 days ago)
**22nd Century Group, Inc. (XXII) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $5.96M (down 7.9% YoY from $6.47M). - **Gross Loss:** $609K (improved from $1.13M loss in Q1 2024). - **Operating Loss:** $2.57M (down 42% from $4.43M in Q1 2024). - **Net Loss:** $3.27M (down 40% from $5.45M in Q1 2024). - **EPS:** $(1.89) (improved from $(230.82) in Q1 2024). **Profit Margins:** - **Gross Margin:** -10.2% (improved from -17.5% in Q1 2024). - **Operating Margin:** -43.1% (improved from -68.5% in Q1 2024). **Cash Flow:** - **Operating Cash Flow:** -$2.98M (increased cash usage by $721K YoY). - **Investing Cash Flow:** -$59K (decreased cash inflow by $74K YoY). - **Financing Cash Flow:** -$254K (decreased cash inflow by $1.95M YoY). **Earnings Changes:** - **Revenue Decrease:** Primarily due to lower filtered cigar sales and negligible cigarillo distribution revenues. - **Expense Reduction:** Lower SG&A and R&D expenses driven by reduced headcount and lower strategic consulting and legal expenses. **Quarterly Performance Discussion:** - **Revenue Trends:** Decrease in filtered cigar sales and cigarillo distribution, offset by increased cigarette sales. - **Expense Management:** Successful cost-cutting measures in SG&A and R&D. - **Cash Flow Trends:** Increased cash usage in operations, decreased cash inflow from investing and financing activities. **Trends & Uncertainties:** - **Positive Trends:** Improved gross and operating margins, reduced expenses. - **Uncertainties:** Substantial doubt about the ability to continue as a going concern, significant debt obligations, and reliance on financing strategies. **Future Operations Impact:** - **Strategic Initiatives:** Evaluating cost reduction strategies and pursuing financing options. - **Debt Management:** Ongoing repayment and conversion of debt obligations. - **Liquidity:** Substantial doubt about liquidity, requiring potential asset sales or strategic partnerships. **Key Metrics:** - **Cash & Equivalents:** $1.13M (down from $4.42M in Q4 2024). - **Working Capital:** -$5.20M (down from $1.79M in Q4 2024). - **Debt:** $4.56M remaining under the Senior Secured Credit Facility. **Outlook:** - **Revenue Growth:** Expected to resume filtered cigar and cigarillo volumes in the remainder of 2025. - **Expense Control:** Continued focus on cost reduction and efficiency. - **Financing:** Potential additional warrant exercises and strategic financing transactions.