Wed, May 15, 10:44 AM (72 days ago)
22nd Century Group, Inc. reported a net revenue decrease of 27.5% to $6,469 for Q1 2024, primarily due to lower sales volume. Gross profit turned to a loss of $1,129 from a profit of $17 in the same period last year, driven by reduced production and inventory reserves. Operating expenses significantly decreased to $3,305 from $10,421, reflecting cost-cutting measures, including reduced compensation, strategic consulting, and sales and marketing expenses. The net loss from continuing operations improved to $5,450 from $10,830. The company faces liquidity issues with cash and cash equivalents at $1,517 and a working capital deficit of $9,497. Significant capital transactions included a registered direct offering raising $3,913 and debt reductions through equity conversions. The company continues to explore financing and strategic options to address its substantial doubt about continuing as a going concern.