22nd Century Group, Inc. (Nasdaq: XXII), a leading
agricultural biotechnology company focused on tobacco harm
reduction, reduced nicotine tobacco, and improving health and
wellness through plant science, today reported results for the
third quarter ended September 30, 2021, and provided an update on
recent business highlights. The Company will host a live audio
webcast today at 10:00 a.m. ET.
“I am proud of the tremendous progress we have made during 2021
as we complete the final step to MRTP authorization of our VLN®
reduced nicotine tobacco cigarettes and begin to monetize our
highly disruptive hemp/cannabis plant lines and IP,” said James A.
Mish, chief executive officer of 22nd Century Group.
Mish added, “We are closer than ever to accomplishing our
mission to reduce the harm caused by smoking. Our decision to
maintain a collaborative approach with the FDA is moving our MRTP
application forward. Based on our recent positive discussion with
senior-level staff at FDA on October 14, our confidence in our MRTP
application outcome and timing is at its highest level. We are
ready to immediately scale production of our VLN® products for
launch in both the U.S. and international markets, and we are eager
to bring VLN® to adult smokers in the U.S. and globally to help
address the overwhelming amount of death and disease caused by
smoking.”
Key Financial and Business Highlights
Tobacco Franchise
- Securing MRTP designation for VLN® remains 22nd Century’s
number one priority. 22nd Century possesses the expertise to
navigate the MRTP application process to a successful conclusion as
evidenced by the positive and collaborative exchanges with FDA and
throughout the process.
- The Company held a successful meeting with the FDA on October
14, 2021, regarding its MRTP application.
- Following the meeting, and in conjunction with recent Center
for Tobacco Products (CTP) activity, the Company’s confidence in a
positive outcome for its MRTP application and timing is at its
highest level to date.
- Evidenced by the Agency’s recent authorization of e-cigarettes
and other nicotine products, the FDA continues to demonstrate its
ongoing commitment to advance its Comprehensive Plan for Tobacco
and Nicotine Regulation requiring that all cigarettes be made
“minimally or non-addictive.” 22nd Century’s MRTP authorization and
the launch of VLN® will serve as a vanguard for the FDA’s proposed
mandate to cap the levels of nicotine in combustible
cigarettes.
- Under these product standards, 22nd Century would have the only
cigarette able to meet the reduced nicotine mandate on day one and,
with the FDA’s determination that the Company’s reduced nicotine
content cigarettes are “appropriate for the protection of health”
under the PMTA pathway, the Company could have the only combustible
menthol cigarette exempt from the FDA’s proposed menthol cigarette
ban.
- 22nd Century Group applauds the potential nomination of Dr.
Robert Califf for FDA commissioner. Califf participated in an event
hosted by STAT on March 12, 2021 where four former FDA
commissioners urged the Biden administration to get tough on
tobacco and move forward quickly with the reduced nicotine mandate
and menthol ban.
- VLN® is market-ready. The Company’s U.S. pilot program and
manufacturing capabilities are in place to launch VLN® in the U.S.
within 90 days of receiving MRTP designation. The Company plans to
position VLN® in the premium pricing segment of the cigarette
market and, therefore, expects it to deliver corresponding
margins.
- The Company continued its international launch process for
VLN®. The Company is focusing on several of the leading markets in
Asia and a test market in Europe. These markets have a strong
affinity for new, modified risk tobacco products and will likely
require minimal interaction with regulators to launch VLN®. Sales
to local partners in one or more markets are expected to begin in
the first quarter of 2022. The Company also plans to establish a
company branch in New Zealand.
- The Company has expanded its strategic discussions to include
pharmaceutical partnership opportunities where reduced nicotine
cigarettes may provide synergistic benefits to other products
already marketed to address tobacco harm reduction.
- 22nd Century’s growth in tobacco contract manufacturing volumes
and disciplined operations continued in the third quarter and
confirms readiness of the Company’s operations ahead of VLN®
launching:
- In July 2021, the Company announced that it had secured a
substantial new agreement with a tobacco industry partner that
specializes in exporting cigarettes to countries outside the United
States.
- In October 2021, the Company secured an additional new contract
manufacturing customer.
- The Company has completed the expansion of its in-house
nicotine content testing capabilities, which allows for rapid,
in-house analysis of its tobacco. This initiative improves the cost
per VLN® sample by more than 90% while significantly reducing the
lead time to uncover key data. Internal testing of the Company’s
current crop of VLN® leaf commenced in August using the newly
installed testing equipment.
- The assets needed to manufacture research cigarettes and VLN®
are generating profits and cash flow ahead of the MRTP
authorization.
- The Company’s record VLN® tobacco growing program in the U.S.
is driven by the Company’s latest sales projections. The new crop
and the Company’s existing inventory of VLN® tobacco are earmarked
for the launch and sales of VLN® cigarettes.
- 22nd Century Group has signed a partnership agreement to grow
VLN® in the southern hemisphere providing the Company with
year-round growing capabilities.
- 22nd Century Group continues to leverage its non-GMO technology
to rapidly introduce reduced nicotine traits into virtually any
variety of tobacco. The Company will begin planting its non-GMO
VLN® varieties at commercial scale, including Bright and Burley
varieties, in 2022.
- The Company submitted its formal response to the New Zealand
Ministry of Health’s Smokefree Aotearoa 2025 Action Plan. This
follows the release of a new proposal by the New Zealand Ministry
of Health Manatū Hauora that calls for reducing the amount of
nicotine allowed in smoked tobacco products to “minimal
levels.”
Hemp/Cannabis Franchise
- The Company expects to monetize its hemp/cannabis plant lines
and IP beginning in the fourth quarter of 2021 with upfront license
fees plus revenue from sale of its hemp biomass and extract from
the current crop harvested at Needle Rock Farms. Next-generation,
disruptive plant lines and IP are being accelerated for 2022 and
2023 revenue programs.
- During the quarter, 22nd Century Group and KeyGene reached a
collaborative agreement with the National Institute of Science and
Technology (NIST) to establish the first-ever quality and
measurement standards for cannabinoids, terpenes, and other
compounds across the hemp/cannabis industry. Through the Company’s
collaboration with KeyGene, the two partners will provide diverse
lines of cannabis plants containing varying levels of cannabinoid
profiles and compounds. Utilizing these samples, NIST will
establish quality standards for the entire hemp/cannabis industry,
distinguishing higher quality products from the saturated
marketplace. The collaboration is pivotal to the growth of the
hemp/cannabis industry as there is a need for consistent, stable
cannabinoids, terpenes, and other hemp/cannabis-derived compounds
to meet the needs of the life science, medicinal, and
pharmaceutical end-use markets.
- The Company is nearing agreements with Aurora relating to both
plant development and licensing of shared Anandia IP for
biosynthetic cannabinoids.
- 22nd Century added strategic partnerships with the world’s
leading alkaloid plant producer-breeders, including Extractas
Bioscience, Sawatch Agriculture, and Folium Botanical for
next-generation commercial hemp/cannabis plant breeding and
commercial scale-up. The partnerships facilitate year-round growing
capabilities at locations in both the southern and northern
hemispheres.
- The Company now controls the most comprehensive and innovative
upstream cannabinoid value chain in the industry, an asset critical
to unlocking commercial success for large-scale cultivation and
extraction as this emerging industry continues to scale with the
continuing success of global legalization and commercialization
efforts and the entrants of new players from adjacent industries
including tobacco, pharmaceutical, and other consumer products
companies.
- 22nd Century Group is in the process of applying for its USDA
Organic Certification for its hemp farm, Needle Rock Farms. USDA
Organic Certification will allow 22nd Century to command a premium
in price and margins for its raw materials.
Hops Franchise
- The Company announced entry into the global specialty hops
market, its third and newest plant franchise, on August 30, 2021.
Hops is a large global addressable market estimated at more than
$500 billion annually that includes well-established hops providers
and consumer brands.
- 22nd Century is approximately eight months into its initial
hops two-year development cycle and expects monetization of hop
plant varieties and IP with upfront license fees beginning in late
2022 to mid-2023.
- 22nd Century is actively engaged in discussions with multiple
significant hops grower and consumer product partners to develop
specific desired traits in leading hops strains.
- The Company is securing hop plant germplasm for use in
breeding, and it is advancing valuable IP on those plants.
- The Company is advancing its hop genome sequencing efforts
through its partnership with KeyGene, which has been accelerated by
its knowledge of genome sequencing in hemp/cannabis, which is
closely related to the hop plant.
- 22nd Century is in the process of establishing a new subsidiary
in the Netherlands, 22nd Century Group Europe B.V., to open new
revenue opportunities in hops, as well as serve its tobacco and
hemp/cannabis plant franchises through an expanded global
footprint.
Corporate Business Highlights
- 22nd Century began trading on Nasdaq Capital Markets on August
16, 2021. Uplisting to the Nasdaq aligns the Company with other
high-achieving, innovative, and growth-oriented global science and
technology companies and enhances the Company’s visibility to a
wide audience of institutional investors.
- 22nd Century appointed accomplished life sciences and
biotechnology executive Anthony Johnson to its Board of
Directors.
- New research coverage of the Company was initiated by Vivien
Azer on July 23, 2021. Azer is a leading beverages, tobacco, and
cannabis senior analyst at Cowen & Company, LLC.
2021 Third Quarter Financial Results
- Net sales for the third quarter of 2021 were $7.8 million, an
increase of 6.9% from $7.3 million in the prior year period. The
increase was due to an increase in contract manufacturing
sales.
- Gross profit for the third quarter of 2021 improved by $87
thousand, or 24% to $449 thousand compared to the prior year period
– a seventh consecutive quarter of year-over-year improvement in
gross profit. The improvement in gross margin was primarily the
result of increased filtered cigar sales mix due to new customer
contracts and price increases on the Company’s contract
manufactured cigarettes.
- Total operating expenses for the third quarter of 2021
increased by $3.5 million compared to the prior year period. This
was driven by the following:
- Sales, general and administrative expenses increased by $3.6
million compared to the prior year period. This was driven
primarily by higher personnel, insurance, financial and strategic
consulting costs, and marketing costs. These investments deployed
to support, evaluate, and prepare for future opportunities are
critical as the Company moves quickly to market readiness in both
tobacco and hemp/cannabis.
- Research and development expense for the third quarter of 2021
was favorably lower by $52 thousand compared to the prior year
period. This favorability was primarily driven by a tobacco leaf
inventory impairment in the prior year period which did not reoccur
in the current year period, and lower personnel costs and contract
costs partially offset by higher license and contract costs for
field trials and patent fees. The Company’s R&D investments are
expected to grow in future quarters as the Company continues to
accelerate the development of new, highly-differentiated
hemp/cannabis plants and expand its R&D efforts to hops.
- Operating loss for the third quarter of 2021 was $(7.9)
million, an increase of $3.4 million compared to the prior year
period. This was primarily driven by an increase in SG&A and
was partially offset by higher gross profit and lower research and
development spend in the third quarter of 2021.
- Net loss in the third quarter of 2021 was $(9.4) million, an
increase of $5.1 million compared to the prior year period
primarily due to an increase in non-cash charges off-set by
benefits to other income and expenses, and representing a net loss
per share of $(0.06). This compares to the third quarter of 2020
net loss of $(4.2) million, or $(0.03) per share.
- The Company recorded a non-cash unrealized loss of $1.9 million
related to its fair value adjustments for investment in Aurora
Cannabis stock warrants and investment in Exactus common
stock.
Balance Sheet and Liquidity
- For the first nine months of 2021, net cash used in operating
activities was $18.2 million, compared to $12.6 million in the
prior year period.
- The Company ended the quarter with a cash position of $55.2
million as of September 30, 2021, and the Company’s continued
initiatives to manage expenses relative to net sales revenue should
provide the Company with additional runway to execute for the
foreseeable future
Third Quarter Earnings Conference Call22nd
Century will host a live webcast today at 10:00 a.m. ET to discuss
its third quarter 2021 financial results and business highlights.
During the webcast, James A. Mish, chief executive officer of 22nd
Century Group, together with Michael Zercher, president and chief
operating officer, and John Franzino, chief financial officer, will
review the Company’s 2021 third quarter results, and an update on
progress made in each of the Company’s three franchises.
Following prepared remarks, including an accompanying slide
presentation, the Company will host a Q&A session, during which
management will accept questions from interested analysts.
Investors, shareholders, and members of the media will also have
the opportunity to pose questions to management by submitting
questions through the interactive webcast during the event.
The live and archived webcast, interactive Q&A, and slide
presentation will be accessible on the Events web page in the
Company's Investor Relations section of the website, at
https://www.xxiicentury.com/investors/events. An archived replay of
the webcast and the event transcript will also be available shortly
after the live event has concluded.
About 22nd Century Group, Inc.22nd Century
Group, Inc. (Nasdaq: XXII) is a leading agricultural
biotechnology company focused on tobacco harm reduction, reduced
nicotine tobacco and improving health and wellness through plant
science. With dozens of patents allowing it to control nicotine
biosynthesis in the tobacco plant, the Company has developed
proprietary reduced nicotine content (RNC) tobacco plants and
cigarettes, which have become the cornerstone of the FDA’s
Comprehensive Plan to address the widespread death and disease
caused by smoking. In tobacco, hemp/cannabis, and hop plants, 22nd
Century uses modern plant breeding technologies, including genetic
engineering, gene-editing, and molecular breeding to deliver
solutions for the life science and consumer products industries by
creating new, proprietary plants with optimized alkaloid and
flavonoid profiles as well as improved yields and valuable
agronomic traits.
Learn more at xxiicentury.com, on
Twitter @_xxiicentury, and on LinkedIn.
Cautionary Note Regarding Forward-Looking
StatementsExcept for historical information, all of the
statements, expectations, and assumptions contained in this press
release are forward-looking statements. Forward-looking statements
typically contain terms such as “anticipate,” “believe,”
“consider,” “continue,” “could,” “estimate,” “expect,” “explore,”
“foresee,” “goal,” “guidance,” “intend,” “likely,” “may,” “plan,”
“potential,” “predict,” “preliminary,” “probable,” “project,”
“promising,” “seek,” “should,” “will,” “would,” and similar
expressions. Actual results might differ materially from those
explicit or implicit in forward-looking statements. Important
factors that could cause actual results to differ materially are
set forth in “Risk Factors” in the Company’s Annual Report on Form
10-K filed on March 11, 2021. All information provided in this
release is as of the date hereof, and the Company assumes no
obligation to and does not intend to update these forward-looking
statements, except as required by law.
Investor Relations & Media ContactMei
KuoDirector, Communications & Investor Relations22nd Century
Group, Inc.(716) 300-1221mkuo@xxiicentury.com
22nd CENTURY GROUP,
INC.CONSOLIDATED BALANCE
SHEETS(Unaudited)($ in thousands,
except per-share data)
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
2021 |
|
2020 |
ASSETS |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,629 |
|
|
$ |
1,029 |
|
Short-term investment securities |
|
|
53,532 |
|
|
|
21,313 |
|
Accounts receivable, net |
|
|
1,179 |
|
|
|
2,159 |
|
Inventory, net |
|
|
2,703 |
|
|
|
2,034 |
|
Prepaid expenses and other assets |
|
|
3,131 |
|
|
|
1,806 |
|
Total current assets |
|
|
62,174 |
|
|
|
28,341 |
|
Property, plant and equipment,
net |
|
|
4,754 |
|
|
|
2,483 |
|
Operating leases right-of-use
assets, net |
|
|
478 |
|
|
|
247 |
|
Intangible assets, net |
|
|
8,036 |
|
|
|
8,211 |
|
Investments |
|
|
7,300 |
|
|
|
6,536 |
|
Other assets |
|
|
3,713 |
|
|
|
5,876 |
|
Total
assets |
|
$ |
86,455 |
|
|
$ |
51,694 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Notes payable |
|
$ |
1,782 |
|
|
$ |
539 |
|
Operating lease obligations |
|
|
74 |
|
|
|
247 |
|
Accounts payable |
|
|
1,443 |
|
|
|
1,116 |
|
Accrued expenses |
|
|
3,440 |
|
|
|
4,830 |
|
Accrued severance |
|
|
223 |
|
|
|
339 |
|
Deferred income |
|
|
— |
|
|
|
272 |
|
Total current liabilities |
|
|
6,962 |
|
|
|
7,343 |
|
Long-term
liabilities: |
|
|
|
|
|
|
Operating lease obligations |
|
|
407 |
|
|
|
— |
|
Severance obligations |
|
|
72 |
|
|
|
241 |
|
Total liabilities |
|
|
7,441 |
|
|
|
7,584 |
|
Commitments and
contingencies (Note 11) |
|
|
|
|
|
|
Shareholders'
equity |
|
|
|
|
|
|
10,000,000 preferred shares, $.00001 par value |
|
|
|
|
|
|
300,000,000 common shares, $.00001 par value |
|
|
|
|
|
|
Capital stock issued and outstanding: |
|
|
|
|
|
|
162,735,483 common shares (139,061,690 at
December 31, 2020) |
|
|
|
|
|
|
Common stock value |
|
|
2 |
|
|
|
1 |
|
Capital in excess of par value |
|
|
243,087 |
|
|
|
189,439 |
|
Accumulated other comprehensive (loss) income |
|
|
(27 |
) |
|
|
74 |
|
Accumulated deficit |
|
|
(164,048 |
) |
|
|
(145,404 |
) |
Total shareholders' equity |
|
|
79,014 |
|
|
|
44,110 |
|
Total liabilities and shareholders’ equity |
|
$ |
86,455 |
|
|
$ |
51,694 |
|
22nd CENTURY GROUP,
INC.CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS(Unaudited)($
in thousands, except per-share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Sale of products, net |
|
$ |
7,811 |
|
|
$ |
7,310 |
|
|
$ |
22,988 |
|
|
$ |
20,803 |
|
Cost of goods sold
(exclusive of depreciation shown separately below): |
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
|
7,362 |
|
|
|
6,948 |
|
|
|
21,306 |
|
|
|
19,953 |
|
Gross profit (loss) |
|
|
449 |
|
|
|
362 |
|
|
|
1,682 |
|
|
|
850 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
854 |
|
|
|
906 |
|
|
|
2,287 |
|
|
|
2,676 |
|
Research and development - MRTP |
|
|
2 |
|
|
|
4 |
|
|
|
16 |
|
|
|
158 |
|
Sales, general and administrative |
|
|
6,821 |
|
|
|
3,169 |
|
|
|
17,827 |
|
|
|
9,809 |
|
Impairment of intangible assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
146 |
|
Depreciation |
|
|
173 |
|
|
|
160 |
|
|
|
461 |
|
|
|
473 |
|
Amortization |
|
|
168 |
|
|
|
163 |
|
|
|
471 |
|
|
|
524 |
|
Total operating expenses |
|
|
8,018 |
|
|
|
4,402 |
|
|
|
21,062 |
|
|
|
13,786 |
|
Operating loss |
|
|
(7,569 |
) |
|
|
(4,040 |
) |
|
|
(19,380 |
) |
|
|
(12,936 |
) |
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on investments |
|
|
(1,900 |
) |
|
|
(429 |
) |
|
|
(2,040 |
) |
|
|
(562 |
) |
Impairment of Panacea investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,062 |
) |
Gain on Panacea investment conversion |
|
|
— |
|
|
|
— |
|
|
|
2,548 |
|
|
|
— |
|
Gain on the sale of property, plant and equipment |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
Interest income, net |
|
|
52 |
|
|
|
270 |
|
|
|
272 |
|
|
|
1,344 |
|
Interest expense |
|
|
(23 |
) |
|
|
(23 |
) |
|
|
(44 |
) |
|
|
(54 |
) |
Total other income (expense) |
|
|
(1,871 |
) |
|
|
(181 |
) |
|
|
736 |
|
|
|
(333 |
) |
Loss before income taxes |
|
|
(9,440 |
) |
|
|
(4,221 |
) |
|
|
(18,644 |
) |
|
|
(13,269 |
) |
Income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
38 |
|
Net loss |
|
$ |
(9,440 |
) |
|
$ |
(4,221 |
) |
|
$ |
(18,644 |
) |
|
$ |
(13,307 |
) |
Other comprehensive
income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on short-term investment securities |
|
|
(28 |
) |
|
|
87 |
|
|
|
(101 |
) |
|
|
132 |
|
Other comprehensive income (loss) |
|
|
(28 |
) |
|
|
87 |
|
|
|
(101 |
) |
|
|
132 |
|
Comprehensive
loss |
|
$ |
(9,468 |
) |
|
$ |
(4,134 |
) |
|
$ |
(18,745 |
) |
|
$ |
(13,175 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common
share - basic and diluted |
|
$ |
(0.06 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.10 |
) |
Weighted average
common shares outstanding - basic and diluted (in
thousands) |
|
|
162,721 |
|
|
|
138,857 |
|
|
|
153,998 |
|
|
|
138,774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Below is a table containing information relating to the
Company’s Adjusted EBITDA for the three months and year-to-date
ended September 30, 2021 and 2020, including a reconciliation of
net (loss) income to Adjusted EBITDA for such periods.
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
September 30, |
|
|
Dollar Amounts in Thousands ($000's) |
|
|
|
|
|
|
|
|
|
$ Change |
|
|
2021 |
|
2020 |
|
|
fav / (unfav) |
Net loss |
|
$ |
(9,440 |
) |
|
$ |
(4,221 |
) |
|
$ |
(5,219 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization and depreciation |
|
|
341 |
|
|
|
323 |
|
|
|
18 |
|
Unrealized loss (gain) on investment |
|
|
1,900 |
|
|
|
429 |
|
|
|
1,471 |
|
Gain on the sale of machinery and equipment |
|
|
— |
|
|
|
(1 |
) |
|
|
1 |
|
Accretion of non cash interest expense |
|
|
2 |
|
|
|
4 |
|
|
|
(2 |
) |
Equity-based employee compensation expense |
|
|
1,119 |
|
|
|
306 |
|
|
|
813 |
|
Interest income, net |
|
|
(52 |
) |
|
|
(270 |
) |
|
|
218 |
|
Interest expense |
|
|
21 |
|
|
|
19 |
|
|
|
2 |
|
Adjusted
EBITDA |
|
$ |
(6,109 |
) |
|
$ |
(3,411 |
) |
|
$ |
(2,698 |
) |
1Fav = Favorable variance, which increases Adjusted EBITDA;
Unfav = unfavorable variance, which reduces Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-date Ended |
|
|
September 30, |
|
|
Dollar Amounts in Thousands ($000's) |
|
|
|
|
|
|
|
|
|
$ Change |
|
|
2021 |
|
2020 |
|
|
fav / (unfav) |
Net loss |
|
$ |
(18,644 |
) |
|
$ |
(13,307 |
) |
|
$ |
(5,337 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
Impairment of intangible assets |
|
|
— |
|
|
|
146 |
|
|
|
(146 |
) |
Impairment of Panacea investment |
|
|
— |
|
|
|
1,062 |
|
|
|
(1,062 |
) |
Amortization and depreciation |
|
|
931 |
|
|
|
997 |
|
|
|
(66 |
) |
Unrealized loss (gain) on investment |
|
|
2,040 |
|
|
|
562 |
|
|
|
1,478 |
|
Gain on the sale of machinery and equipment |
|
|
— |
|
|
|
(1 |
) |
|
|
1 |
|
Gain on Panacea investment conversion |
|
|
(2,548 |
) |
|
|
— |
|
|
|
(2,548 |
) |
Accretion of non cash interest expense |
|
|
6 |
|
|
|
34 |
|
|
|
(28 |
) |
Equity-based employee compensation expense |
|
|
2,871 |
|
|
|
1,162 |
|
|
|
1,709 |
|
Executive and board search fees |
|
|
— |
|
|
|
430 |
|
|
|
(430 |
) |
Interest income, net |
|
|
(272 |
) |
|
|
(1,344 |
) |
|
|
1,072 |
|
Interest expense |
|
|
38 |
|
|
|
20 |
|
|
|
18 |
|
Adjusted
EBITDA |
|
$ |
(15,578 |
) |
|
$ |
(10,239 |
) |
|
$ |
(5,339 |
) |
1Fav = Favorable variance, which increases Adjusted EBITDA;
Unfav = unfavorable variance, which reduces Adjusted EBITDA
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 with generally accepted accounting principles (“GAAP”).
In order to calculate Adjusted EBITDA, the Company adjusts the net
(loss) income for certain non-cash and non-operating income and
expense items listed in the table above in order to measure the
Company’s operating performance. The Company believes that Adjusted
EBITDA is an important measure that supplements discussions and
analysis of its operations and enhances an understanding of its
operating performance. While management considers Adjusted EBITDA
to be important, it should be considered in addition to, but not as
a substitute for or superior to, other measures of financial
performance prepared in accordance with GAAP, such as operating
loss, net (loss) income and cash flows from operations. Adjusted
EBITDA is susceptible to varying calculations and the Company’s
measurement of Adjusted EBITDA may not be comparable to those of
other companies.
22nd Century (NASDAQ:XXII)
Historical Stock Chart
From Mar 2024 to Apr 2024
22nd Century (NASDAQ:XXII)
Historical Stock Chart
From Apr 2023 to Apr 2024