22nd Century Group, Inc · NASDAQ:XXII
22nd Century — Q4 2020 Earnings Presentation
19 slides from 22nd Century's earnings presentation, Mar 11, 2021
Slide 1: Fourth Quarter 2020 Earnings Presentation
FOURTH QUARTER 2020 EARNINGS PRESENTATION MARCH 11, 2021
Slide 2: Cautionary Note on Forward-Looking Statements
CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS This 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 th
Slide 3: Q4 2020 & Recent Highlights
Q4 2020 & RECENT HIGHLIGHTS 3 DISRUPTING THE +$800 BILLION GLOBAL TOBACCO AND HEMP/CANNABIS MARKETS WITH PROPRIETARY, COMMERCIALLY VALUABLE TECHNOLOGY AND RELATED INTELLECTUAL PROPERTY 1. On 3/4/2021, President Biden issued a proclamation as part of National Colorectal Cancer Awareness Month, 2021,
Slide 4: 2021 Priorities & Areas of Focus
2021 PRIORITIES & AREAS OF FOCUS 4 Tobacco Franchise Hemp/Cannabis & Third Plant-based Franchise Financial Secure MRTP Authorization from FDA; fully prepared for commercial launch of VLN® within 90 days of receiving FDA authorization and execute on licensing and partnership initiatives 01 Target ups
Slide 5: Continuous Pipeline of Revenue Opportunity
CONTINUOUS PIPELINE OF REVENUE OPPORTUNITY 5 Leverage core strength and know-how in plant science to create an extensive pipeline of high-value, commercial opportunities beyond near-term prospects across all franchises Tobacco Franchise 2021 & Beyond • Commercial launch of VLN® within 90 days of rec
Slide 6: VLN Has Massive Global Market Opportunity
VLN® HAS MASSIVE GLOBAL MARKET OPPORTUNITY 6 2/3 of adult smokers want to quit 6 <10% of adult smokers successfully quit in 2018 6 1B global adult smokers 4 34M U.S. adult smokers 5 $714B1 cigarettes account for 90% of the global tobacco market 60% of adult smokers indicate likelihood to use VLN®3,
Slide 7: VLN Is in Final Stages of Review with the FDA
VLN® IS IN FINAL STAGES OF REVIEW WITH THE FDA 7 • Securing MRTP designation for VLN® is number one priority • Highly confident that FDA is in the final stages of the review process • Continue working with various legal advisers, regulatory consultants, and government affairs specialists to highligh
Slide 8: Fully Prepared for Commercial Launch of VLN
FULLY PREPARED FOR COMMERCIAL LAUNCH OF VLN® 8 • Company-owned and operated manufacturing facility has ample capacity to manufacture approximately 1% of the U.S. tobacco market share; ability to triple manufacturing capacity with minimal investment • Expect initial roll-out of VLN® in select markets
Slide 9: MRTP Designation Is a Catalyst for VLN Brand & Tobacco Franchise
MRTP DESIGNATION IS A CATALYST FOR VLN® BRAND & TOBACCO FRANCHISE 9 *For descriptive purposes only. Final trade dress subject to the FDA review and authorization. • MRTP designation opens multiple licensing and partnership opportunities for reduced nicotine content tobacco technology and IP in the U
Slide 10: Optimizing Hemp/Cannabis Plants
Industry Problem: Existing plant genetics result in low quality and unreliable yield for large-scale, commercial production of hemp/cannabis plants Market demand for hemp/cannabis • Global legal cannabis market is projected to be worth +$100B by 20241 • North America held the largest legal, cannabis
Slide 11: Secured Four of Five Key Partnerships in Cannabinoid Value Chain
22ND CENTURY HAS SECURED FOUR OF THE FIVE KEY PARTNERSHIPS NEEDED TO MAXIMIZE AND SUPPORT EACH COMPONENT IN UPSTREAM SEGMENT OF THE CANNABINOID VALUE CHAIN BUILDING NETWORK OF KEY PARTNERSHIPS TO ACCELERATE COMMERCIALIZATION OF NEW, DISRUPTIVE HEMP/CANNABIS PLANTS 11 Plant Biotechnology Established
Slide 12: Fourth Quarter & Full Year 2020 Financial Highlights
FOURTH QUARTER & FULL YEAR 2020 FINANCIAL HIGHLIGHTS 12 1. Gross profit margin is calculated by dividing net sales revenue by gross profit. 2. Adjusted EBITDA, which the Company defines as earnings before interest, taxes, depreciation and amortization, as adjusted by the Company for certain non-cash
Slide 13: Financial Snapshot
FINANCIAL SNAPSHOT 13 $ in millions Select Financials Three Months Ended December 31, Twelve Months Ended December 31, 2020 2019 2020 2019 Net sales revenue $ 7.3 $ 7.3 $ 28.1 $ 25.8 Operating loss $ (6.2) $ (5.6) $ (19.1) $ (23.6) Net loss $ (6.4) $ (6.2) $ (19.7) $ (26.6) Net loss per common share
Slide 14: 22nd Century Investment Highlights
22ND CENTURY INVESTMENT HIGHLIGHTS 14 1. Foundation for a Smoke Free World; https://www.smokefreeworld.org/wp-content/uploads/2019/08/FSFW_Global-Trends-in-Nicotine_6.22.2020.pdf 2. Prohibition Partners; “The Global Cannabis Report – November 2019” 3. Modified Risk Tobacco Product; https://www.fda.g
Slide 15: Q&A
15 Q&A
Slide 16: Financial Info
FINANCIAL INFO
Slide 17: Adjusted EBITDA Definition
ADJUSTED EBITDA DEFINITION Adjusted EBITDA, which the Company defines as earnings before interest, taxes, depreciation and amortization, as adjusted by the Company for certain non-cash and non-operating expenses, as well as certain one-time expenses, is a financial measure not prepared in accordance
Slide 18: Adjusted EBITDA
ADJUSTED EBITDA 18 2020 2019 % Change fav / (unfav)1 2020 2019 % Change fav / (unfav)1 Net loss (6,405) $ (6,198) $ (207) $ (19,711) $ (26,558) $ 6,847 $ Adjustments: Impairment of intangible assets 30 $ - $ 30 $ 176 $ 1,142 $ (966) $ Impairment of Panacea warrant 679 $ - $ 679 $ 1,741 $ - $ 1,741 $
Slide 19: Contact Information
CONTACT INFORMATION INVESTOR RELATIONS & MEDIA CONTACT Mei Kuo Director, Communications & Investor Relations 22nd Century Group, Inc. (716) 300-1221 investorrelations@xxiicentury.com