22nd Century Group Files Q1 2024 10-Q Report

TL;DR

<b>22nd Century Group, Inc. has filed its Q1 2024 10-Q, detailing financial performance and significant subsequent events.</b>

AI Summary

22nd Century Group, Inc. (XXII) filed a Quarterly Report (10-Q) with the SEC on May 15, 2024. 22nd Century Group, Inc. filed its 10-Q for the period ending March 31, 2024. The company's SIC code is 2111 (CIGARETTES). The filing includes data related to "Tobacco" segment for Q1 2024 and Q1 2023. Subsequent events noted include a Letter Agreement on April 8, 2024, and a May 2024 Letter Agreement on May 10, 2024. Key dates include a Needle Rock Farms Settlement Agreement on March 31, 2023.

Why It Matters

For investors and stakeholders tracking 22nd Century Group, Inc., this filing contains several important signals. The filing provides a snapshot of the company's financial health and operational status as of March 31, 2024, which is crucial for investors assessing current performance. The inclusion of subsequent events like the April and May 2024 Letter Agreements indicates potential material changes or strategic moves that could impact future operations and stock value.

Risk Assessment

Risk Level: medium — 22nd Century Group, Inc. shows moderate risk based on this filing. The company operates in the CIGARETTES industry (SIC 2111) and has experienced various disputes and agreements, suggesting potential volatility and regulatory scrutiny.

Analyst Insight

Monitor upcoming filings and press releases for details on the impact of the April and May 2024 Letter Agreements and any resolutions to ongoing disputes.

Key Numbers

• 2024-03-31 — Period End Date (10-Q filing)
• 2024-01-01 — Quarter Start Date (Tobacco segment reporting)
• 2023-01-01 — Prior Year Quarter Start Date (Tobacco segment reporting)
• 2024-04-08 — Subsequent Event Date (Letter Agreement)
• 2024-05-10 — Subsequent Event Date (May 2024 Letter Agreement)

Key Players & Entities

• 22nd Century Group, Inc. (company) — Filer name
• 0001347858 (company) — Central Index Key
• 2111 (industry) — Standard Industrial Classification (CIGARETTES)
• 2024-03-31 (date) — Conformed period of report
• 2024-05-15 (date) — Filed as of date
• Needle Rock Farms Settlement Agreement (legal) — Mentioned agreement
• Letter Agreement (legal) — Subsequent event
• May 2024 Letter Agreement (legal) — Subsequent event

FAQ

Risk Factors

• Keygene Dispute [medium — legal]: The company is involved in a dispute with Keygene, with related events noted in March 2022 and January 2024.
• Needle Rock Farms Settlement Agreement [low — financial]: An agreement was reached on March 31, 2023, the details of which could impact financial obligations.
• Cigarettes Industry [high — regulatory]: Operating under SIC 2111 (CIGARETTES) subjects the company to industry-specific regulations.

Key Dates

• 2024-03-31: Quarter End — Reporting period for the 10-Q

Key Financial Figures

• $0.00001 — ange on Which Registered Common Stock, $0.00001 par value XXII NASDAQ Capital Marke

Filing Documents

• xxii-20240331x10q.htm (10-Q) — 1767KB
• xxii-20240331xex31d1.htm (EX-31.1) — 12KB
• xxii-20240331xex31d2.htm (EX-31.2) — 12KB
• xxii-20240331xex32d1.htm (EX-32.1) — 10KB
• 0001558370-24-008199.txt (&nbsp;) — 9045KB
• xxii-20240331.xsd (EX-101.SCH) — 66KB
• xxii-20240331_cal.xml (EX-101.CAL) — 75KB
• xxii-20240331_def.xml (EX-101.DEF) — 308KB
• xxii-20240331_lab.xml (EX-101.LAB) — 528KB
• xxii-20240331_pre.xml (EX-101.PRE) — 491KB
• xxii-20240331x10q_htm.xml (XML) — 1634KB

Financial Statements

Financial Statements Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 (unaudited) 3 Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months ended March 31, 2024 and 2023 (unaudited) 4 Condensed Consolidated Statements of Changes in Shareholders' Equity (Deficit) for the Three Months ended March 31, 2024 and 2023 (unaudited) 5 Condensed Consolidated Statements of Cash Flows for the Three Months ended March 31, 2024 and 2023 (unaudited) 6 Notes to Condensed Consolidated Financial Statements (unaudited) 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 30 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 39 Item 4.

Controls and Procedures

Controls and Procedures 39 PART II. OTHER INFORMATION 41 Item 1.

Legal Proceedings

Legal Proceedings 41 Item 1A.

Risk Factors

Risk Factors 41 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 41 Item 3. Default Upon Senior Securities 41 Item 4. Mine Safety Disclosures 42 Item 5. Other Information 42 Item 6. Exhibits 42

SIGNATURES

SIGNATURES 43 2 Table of Contents 22nd CENTURY GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (amounts in thousands, except share and per-share data) March 31, December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 1,517 $ 2,058 Accounts receivable, net 1,747 1,671 Inventories 2,889 4,346 Insurance recoveries 3,768 3,768 GVB promissory note 2,000 2,000 Prepaid expenses and other current assets 699 1,180 Current assets of discontinued operations held for sale 1,093 1,254 Total current assets 13,713 16,277 Property, plant and equipment, net 3,236 3,393 Operating lease right-of-use assets, net 1,832 1,894 Intangible assets, net 5,820 5,924 Other assets 15 15 Total assets $ 24,616 $ 27,503 LIABILITIES AND SHAREHOLDERS' DEFICIT Current liabilities: Notes and loans payable - current $ — $ 543 Current portion of long-term debt 6,577 5,848 Operating lease obligations 238 231 Accounts payable 5,046 4,445 Accrued expenses 1,449 1,322 Accrued litigation 3,768 3,768 Accrued payroll 466 883 Accrued excise taxes and fees 2,525 2,234 Deferred income 376 726 Other current liabilities 1,672 1,849 Current liabilities of discontinued operations held for sale 3,147 3,185 Total current liabilities 25,264 25,034 Long-term liabilities: Operating lease obligations 1,635 1,698 Long-term debt 8,136 8,058 Other long-term liabilities 1,205 1,123 Total liabilities 36,240 35,914 Commitments and contingencies (Note 11) Shareholders' equity (deficit) Preferred stock, $ .00001 par value, 10,000,000 shares authorized Common stock, $ .00001 par value, 250,000,000 shares authorized Capital stock issued and outstanding : 3,600,935 common shares ( 2,720,437 at December 31, 2023) Common stock, par value — — Capital in excess of par value 372,822 370,297 Accumulated defic

View Full Filing

View this 10-Q filing on SEC EDGAR