22nd Century Group, Inc · NASDAQ:XXII

22nd Century — Q1 2022 Earnings Presentation

19 slides from 22nd Century's earnings presentation, May 5, 2022

  1. Slide 1: First Quarter 2022 Earnings Presentation

    FIRST QUARTER 2022 EARNINGS PRESENTATIONMay 5, 2022 XXII

  2. Slide 2: Cautionary Note on Forward-Looking Statements

    CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTSThis presentation contains forward-looking statements concerning our business operations, and financial performance and conditions, as well as our plans, objectives, and expectations for our business operations and financial performance and conditions tha

  3. Slide 3: VLN Is Officially in Pilot with Circle K

    3 VLN® IS OFFICIALLY IN PILOT WITH CIRCLE K First and only FDA authorized combustible cigarette that “Helps You Smoke Less” Pilot sales in 150+ Chicago Circle K stores test and refine marketing mix to maximize trial, repeat purchase and advocacy ahead of national launch FDA’s proposed menthol ban

  4. Slide 4: VLN Fuels Multiple New Growth Opportunities

    4 VLN® FUELS MULTIPLE NEW GROWTH OPPORTUNITIES Distinctive product in $80 billion U.S. market, almost $800 billion global marketProven team with successful tobacco product launches Expanding with regional and national partners in C-Store, pharmacy, etc.First international VLN® shipment to South

  5. Slide 5: Tobacco

    TobaccoHemp/Cannabis Hops Financials

  6. Slide 6: VLN Pilot Sales in Chicago

    VLN® PILOT SALES IN CHICAGOPilot launch leading to national rollout 6Illinois state registry listing effective April 4Commenced sales in Circle K April 11 in 150+ pilot storesSecured feature story in Chicago Tribune and support from Chicago Medical Association Planning for marketing and distribu

  7. Slide 7: Ready to Advance to Roll-out During or After Pilot Program

    READY TO ADVANCE TO ROLL-OUT DURING OR AFTER PILOT PROGRAM READYING FOR VLN® MARKET EXPANSION 7Cleared for sale by AGs in 9 states: Illinois, California, New York, Colorado, Texas, Florida, Minnesota, Mississippi, and Rhode Island Filed in all remaining statesCircle K expansion opportunity into 7

  8. Slide 8: Expanded Manufacturing, VLN Growing Programs

    EXPANDED MANUFACTURING, VLN® GROWING PROGRAMSScaling manufacturing and growing programs 62,000 sq. ft. manufacturing facility in NC ready for increased VLN® productionInvesting in 25% capacity expansionContracted largest VLN® tobacco crop everIncluding southern hemisphere pilot grows First comm

  9. Slide 9: Global Markets: Launch in South Korea

    9 First shipment to South Korea in March 2022South Korea is an ideal launch market:High smoking rate –1 in 3 adult men are smokersLarge premium segment with high interest in alternative productsLaunch partner in placeTargeting additional key markets where regulations require minimal interactio

  10. Slide 10: Menthol Ban & Nicotine Cap Policies Favor VLN

    MENTHOL BAN & NICOTINE CAP POLICIES FAVOR VLN® FDA continues to advance its policy priorities, particularly a rule banning menthol as a characterizing flavor.VLN® Menthol King cigarettes could be the only combustible menthol cigarette on the market exempt from the menthol ban, providing a critical

  11. Slide 11: Hemp/Cannabis

    TobaccoHemp/Cannabis Hops Financials

  12. Slide 12: Monetizing Our Position in Hemp/Cannabis

    First Hamp/Cannabis RevenueFirst biomass sales in Q4 2021First distillate/isolate sales Q1 2022 First IP revenue from AnandiaIP in Q4 20212022+ Commercial Accelerant Opportunities Readying next-generation plant lines aligned to customer needs for 2022 growing seasonFocused on plant lines tied t

  13. Slide 13: Hops

    TobaccoHemp/Cannabis Hops Financials

  14. Slide 14: 22nd Century's Hops Value Proposition

    Introduce new agronomic traits to improve disease/pest resistance and plant architecture to increase crop yields in leading hop strains that are already well-accepted by the brewing industry.Increase hops content of hops active molecules that drive the beer industry, such as alpha and beta acids, pl

  15. Slide 15: Financials

    TobaccoHemp/Cannabis Hops Financials

  16. Slide 16: First Quarter 2022 Financial Highlights

    FIRST QUARTER 2022 FINANCIAL HIGHLIGHTS Net SalesGross ProfitGross Profit MarginOperating LossNet Loss1Q 2022$9.0M$460K5.1%$(8.1)M$(8.9)M1Q 2021$6.8M$647K9.5%$(5.2)M$(5.0)M16 CMO activities fund the cost of facilities needed to manufacture VLN®.

  17. Slide 17: First Quarter 2022 Financial Highlights: Balance Sheet

    FIRST QUARTER 2022 FINANCIAL HIGHLIGHTS Quarter EndedDollar amounts in millionsMarch 31, 2022December 31, 2021Cash and cash equivalents1$ 38.6$ 48.7 Total assets2$ 66.5$ 76.0Total liabilities3$ 8.5$ 9.9Total shareholders' equity4$ 58.0$ 66.117 Balance sheet aligned to partner-focused VLN® launch and

  18. Slide 18: Q&A

    18 Q&A

  19. Slide 19: Contact Information

    CONTACT INFORMATIONINVESTOR RELATIONS & MEDIA CONTACTMei Kuo22nd Century Group, Inc.Director, Communications & Investor Relations T: 716-300-1221mkuo@xxiicentury.comMatt KrepsDarrow Associates Investor Relations T: 214-597-8200mkreps@darrowir.com

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