Business
22nd Century Group Reports Business Highlights and Financial Results for the Fourth Quarter and Full-Year 2020
Key Business and Financial Highlights 22nd Century has a tremendous global commercial opportunity in the more than $800 billion markets across the tobacco and
About this update from 22nd Century Group, Inc
[{"type":"text","content":"Key Business and Financial Highlights 22nd Century has a tremendous global commercial opportunity in the more than $800 billion markets across the tobacco and hemp/cannabis industry.Securing Modified Risk Tobacco Product (MRTP) authorization for VLN® remains 22nd Century’s number one priority. The Company is highly confident that the FDA is in the final stages of the review process related to its application.22nd Century is fully prepared and eager to launch VLN® King and VLN® Menthol King within 90 days of receiving MRTP designation. MRTP designation is a catalyst for the VLN® brand and tobacco franchise via partnerships and licensing agreements in the U.S. and internationally.22nd Century believes that recent political changes will likely be highly favorable to its business prospects from a policy priority and regulatory standpoint. The Company believes that, under the new administration, the FDA will now be re-energized in implementing its ground-breaking Comprehensive Plan for Tobacco and Nicotine Regulation, in particular the Agency’s plan to cap the amount of nicotine in combustible cigarettes to a “minimally or non-addictive” level.The Company has now secured four out of the five key partnerships needed to maximize each component in the upstream segment of the hemp/cannabis value chain. The partnerships will enable 22nd Century to accelerate the new development of valuable, commercial hemp/cannabis lines and intellectual property to market in two years while it monetizes a portion of the Company’s current portfolio of intellectual property (IP) from its previous license agreement with Anandia Laboratories. 22nd Century is also in final discussions with top-tier plant breeders that will be announced soon.Net sales revenue of $7.3 million for the fourth quarter was consistent over the prior-year period and improved by 8.8% to $28.1 million for the full-year.Gross profit for the fourth quarter improved by $364 thousand and by $1.4 million for the full-year; gross profit margin improved by 500 basis points for both periods.Net loss increased by $207 thousand for the fourth quarter. For the full-year, net loss improved by $6.8 million.Adjusted EBITDA was unfavorable by $1.3 million for the fourth quarter. For the full-year Adjusted EBITDA improved by $1.8 million.The Company’s balance sheet is well funded with $22.3 million at...