22nd Century Group, Inc · NASDAQ:XXII
22nd Century — Q2 2021 Earnings Presentation
15 slides from 22nd Century's earnings presentation, Aug 5, 2021
Slide 1: Second Quarter 2021 Earnings Presentation
SECOND QUARTER 2021 EARNINGS PRESENTATION August 5, 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: Initiatives and Recent Key Growth Updates
INITIATIVES Secure MRTP Authorization Launch VLN® in Select Global Markets Commence Hemp/Cannabis Revenue Recognition Announce Third Franchise August 30 RECENT ACCOMPLISHMENTS .. In regular contact with FDA and CTP through multiple channels at all levels .. Highly confident MRTP is in the documentat
Slide 4: Smokers Deserve a Choice
SMOKERS DESERVE A CHOICE 4 .. Federally funded studies clearly document the benefits of reduced nicotine content cigarettes .. VLN®’s PMTA affirms its importance to public health .. Highly confident MRTP is in the documentation phase of FDA’s review process .. 22nd Century is a leader and has expert
Slide 5: VLN Pilot Will Emphasize Trial, Repeat Purchase, and Advocacy
22ND CENTURY'S VLN® PILOT WILL EMPHASIZE TRIAL, REPEAT PURCHASE, AND ADVOCACY BY ADULT SMOKERS PILOT MARKETS ARE READY FOR LAUNCH Fully prepared for pilot launch leading to national rollout Launch-ready for commercial sales within 90 days of FDA MRTP authorization Identified both initial pilot and s
Slide 6: Manufacturing Ramp
MANUFACTURING RAMP 6 62,000 sq. ft. manufacturing facility in NC Manufacturing capacity ~1% of the U.S. tobacco market; increasing to ~3% with minimal investment FDA inspected and cleared as part of the Premarket Tobacco Application (PMTA) process Significantly expanded 2021 VLN® growing program to
Slide 7: Accelerating International Launch in Multiple Markets
ACCELERATING INTERNATIONAL LAUNCH IN MULTIPLE MARKETS 7 .. Initiating launch process of VLN® in countries with lower regulatory hurdles .. Targeting launches by Q1 ‘22 .. Funded by proceeds from June 2021 capital raise .. Adding experienced growers in southern hemisphere for year-round growing of VL
Slide 8: Hemp/Cannabis Moving to Monetization
. Rapidly increasing demand is driving the need for optimized plant genetics and proprietary, stable plant lines that deliver higher crop yield for commercial use .. Growing support for federal legalization and increased access for medicinal and recreational use 22nd Century Moving to Monetization:
Slide 9: Key Partnerships Across the Cannabinoid Value Chain
22ND CENTURY HAS SECURED ALL OF THE KEY PARTNERSHIPS NEEDED TO MAXIMIZE AND SUPPORT EACH COMPONENT IN UPSTREAM SEGMENT OF THE CANNABINOID VALUE CHAIN. ACCELERATING COMMERCIALIZATION OF NEW, DISRUPTIVE HEMP/CANNABIS PLANTS 9 Plant Biotechnology Established proprietary bioinformatics platform and cutt
Slide 10: 22nd Century Group Nasdaq Uplisting
22ND CENTURY GROUP NASDAQ UPLISTING 10 .. Nasdaq listing effective August 16, 2021 .. Symbol will remain “XXII” .. No action required of current investors
Slide 11: Second Quarter 2021 Financial Highlights
SECOND QUARTER 2021 FINANCIAL HIGHLIGHTS 11 1. Gross profit margin is calculated by dividing net sales revenue by gross profit. Net Sales Gross Profit Gross Profit Margin Operating Loss 2Q 2021 $8.4M $586K 7.0% $(6.6)M 2Q 2020 $6.4M $201K 3.1% $(4.8)M +30% YOY NET SALES +390 BASIS POINTS YOY GROSS P
Slide 12: Financial Snapshot
FINANCIAL SNAPSHOT 12 $ in millions Select Financials Three Months Ended June 30, 2021 2020 Net sales revenue $ 8.4 $ 6.4 Gross Profit Margin $ .6 $.2 Operating loss $ (6.6) $ (4.8) Net loss $ (4.2) $ (5.1) Net loss per common share - basic and diluted $ (0.03) $ (0.04) Weighted average common share
Slide 13: 2021 Priorities & Areas of Focus
2021 PRIORITIES & AREAS OF FOCUS 13 Tobacco Franchise Hemp/Cannabis & Third Plant-based Franchise Financial Secure MRTP Authorization from FDA .. VLN® pilot programs ready to launch .. Engaging with multiple distribution partners to support national launch capabilities .. Ramping manufacturing capab
Slide 14: Q&A
14 Q&A
Slide 15: Contact Information
CONTACT INFORMATION INVESTOR RELATIONS & MEDIA CONTACT Mei Kuo Director, Communications & Investor Relations 22nd Century Group, Inc. (716) 300-1221 mkuo@xxiicentury.com