22nd Century Group Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
22nd Century Group (Nasdaq: XXII) reported second quarter 2026 net revenues of $2.9 million, down from $4.1 million in the prior quarter and $4.1 million a year ago. Gross loss improved to $0.3 million, while operating loss widened to $3.3 million and net loss was $3.3 million. Adjusted EBITDA loss was $3.5 million. The company ended the quarter with $6.1 million in cash and no debt.
According to 22nd Century Group, cigarette revenues declined as it shifted away from low-priced export customers toward higher-margin VLN® products. The company expanded Pinnacle VLN® distribution by about 150 stores in metro New York/New Jersey, initiated launches in roughly 60 California stores, and now has a presence in more than 2,000 outlets across 20 states.
Positive
- Gross loss narrowed to $0.3M in Q2 2026 from $0.6M in Q1
- Gross loss improved to $0.3M from $0.6M year over year (53.9% improvement)
- No outstanding debt and $6.1M in cash and cash equivalents at quarter-end
- VLN® cigarette revenue rose to $0.03M from negligible Q1 levels on growing reorders
- Retail footprint exceeds 2,000 stores across 20 states for Pinnacle VLN® products
- Additional 150 stores added in metro New York/New Jersey plus about 60 stores in California
Negative
- Net revenues down 29.9% year over year to $2.9M in Q2 2026
- Sequential revenue decline from $4.1M in Q1 2026 to $2.9M in Q2 2026
- Operating loss increased to $3.3M in Q2 2026 from $3.0M in Q1
- Adjusted EBITDA loss widened to $3.5M from $2.6M sequentially
- Cigarette revenues fell to $2.3M from $2.8M in Q1 2026
- Filtered cigar revenues declined to $0.7M from $0.9M, with volumes also lower
- Distribution revenues negative at $(0.2)M due to a one-time aged inventory write-off
News Explained
The balance sheet adds a capital-structure change not reflected in the operating summary: 22nd Century Group reported 502,839 common shares outstanding on
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 07 | 1Q26 earnings | Negative | -16.4% | Reported losses and $4.1 million revenue alongside commercialization updates |
| Mar 26 | FY25 earnings | Negative | -10.6% | Reported annual losses despite debt elimination and cash generation |
| Feb 20 | FY25 preliminary results | Negative | -15.6% | Preliminary revenue decline and annual net loss were disclosed |
| Aug 14 | 2Q25 earnings | Negative | -10.1% | Revenue declined while the company continued reporting quarterly losses |
| May 13 | 1Q25 earnings | Positive | +7.5% | Revenue increased sequentially and cigarette volumes reached 319,000 cartons |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-tagged history showed reactions aligned with the reported result direction across five events, with an average 24-hour move of -9.05%.
Key Terms
adjusted ebitda financial
gaap financial
modified risk tobacco product regulatory
contract manufacturing technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Advances VLN® Commercialization Through Expanded Retail Support and Brand-Building Initiatives
MOCKSVILLE, N.C., Aug. 13, 2026 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), the leader in low-nicotine tobacco, low-nicotine cigarettes and only tobacco products company focused on reducing the harms of smoking through nicotine reduction, today announced results for the second quarter ended June 30, 2026, and provided an update on recent commercial, regulatory and operational activities.
The Company’s proprietary reduced nicotine technology is designed to serve adult smokers seeking to significantly reduce nicotine consumption while continuing to use a familiar combustible format. 22nd Century’s strategy is centered on providing adult smokers with FDA-authorized reduced nicotine cigarette products intended to help them take greater control of their nicotine consumption.
“The second quarter marked another period of disciplined execution as we continued to expand retail distribution, increase consumer awareness and strengthen the commercial foundation for our VLN® cigarette products” said Larry Firestone, Chief Executive Officer of 22nd Century Group. “During the quarter, we broadened our retail footprint, launched new Pinnacle® products, expanded into new geographic markets and continued building the infrastructure necessary to support long-term commercial growth. Our initial same-store sales reports for VLN® products demonstrated encouraging consumer demand and reinforced our belief that the market is looking for an alternative in the form of a combustible cigarette with significantly reduced nicotine.”
“Our strategy remains straightforward. We will leverage our proprietary reduced-nicotine technology across multiple channels while improving economics through a broader product portfolio, add additional partner-brand opportunities and execute with discipline. As THE leader in low-nicotine tobacco technology and products, we believe our FDA-authorized modified risk claims, growing retail presence and differentiated intellectual property position us to continue investing in low-nicotine products and expanding the low-nicotine category. Together, these advantages provide us with a differentiated position within the tobacco industry and a strong foundation for future growth.”
“We believe nicotine reduction represents the next significant step in the evolution of the tobacco industry and one of the most compelling long-term opportunities in tobacco harm reduction. With our proprietary technology, FDA-authorized products, increasing commercial distribution and scalable business model, we believe 22nd Century is well positioned to create long-term value for adult smokers seeking familiar alternatives while delivering value for our shareholders.”
Second Quarter 2026 Financial Results (compared to First Quarter 2026, except as noted)
All figures reported below reflect continuing operations, excluding discontinued operations related to the sale and exit of the Company’s hemp/cannabis business in late 2023, except as noted.
| ● | Net revenues decreased to | |
| ● | Gross profit (loss) improved to | |
| ● | Operating expenses were | |
| ● | Operating loss increased to | |
| ● | Net loss was | |
| ● | Adjusted EBITDA loss was | |
| ● | Ended the quarter with cash and cash equivalents of | |
2026 Strategic Priorities
22nd Century has identified the below priorities for its business activities in 2026:
| ● | Expanding VLN® product distribution and consumer awareness. | |
| ● | Continuing disciplined cost management and capital allocation. | |
| ● | Advancing toward EBITDA breakeven as higher-margin revenues scale. | |
| ● | Remaining actively engaged with FDA regulators and public-health stakeholders. | |
The Company believes that the convergence of regulatory momentum, increasing consumer awareness and its differentiated product portfolio may support long-term value creation.
Recent Business Highlights
- Expanded Pinnacle VLN® retail distribution into approximately 150 additional stores across metro New York and northern New Jersey, strengthening the Company’s presence in one of the nation’s largest convenience retail markets.
- Launched Pinnacle Pure™, a new tobacco- and water-style combustible cigarette expected to be distributed through more than 2,000 retail locations, expanding the Pinnacle brand portfolio and supporting higher-margin revenue opportunities.
- Initiated a retail launch of Pinnacle VLN® in California through approximately 60 stores, establishing the Company’s first commercial presence in the nation’s largest tobacco market.
- Supported Pinnacle® VLN® through in-store marketing materials and digital promotion programs designed to increase adult-smoker awareness and support retail sell-through.
-
- Initial promotional programs conducted during May and early June were associated with a meaningful increase in unit sales and a broader number of adult-smoker product trials during the promotional period.
- Initial promotional programs conducted during May and early June were associated with a meaningful increase in unit sales and a broader number of adult-smoker product trials during the promotional period.
- Continued expanding Pinnacle® VLN® retail distribution across convenience, drug, tobacco specialty and other retail channels. Building on the Company’s current presence in more than 2,000 stores across 20 states, management is targeting expansion to approximately 5,000 retail outlets across multiple classes of trade by year-end 2026, significantly broadening adult-smoker access to VLN® products while providing a stronger foundation for long-term revenue growth.
- Continued commercial discussions regarding the supply of VLN® tobacco, manufacturing capabilities, partner-brand opportunities and, where applicable, future licensing arrangements.
- Ended the quarter with
$6.1 million in cash and cash equivalents and no outstanding debt, providing financial flexibility to support commercialization initiatives and strategic growth objectives.
Second Quarter 2026 Product Line Net Revenues
| ● | Cigarette net revenues were | |
| ● | Filtered cigar net revenues were | |
| ● | Distribution net revenues from other tobacco products for the period was | |
| ● | VLN® cigarette net revenues of | |
Conference Call
22nd Century will host a live webcast today at 8:00 a.m. E.T. to discuss its second quarter 2026 financial results and business highlights. The live and archived webcast will be accessible in the Events section on 22nd Century’s Investor Relations website at https://ir.xxiicentury.com/events.
Summary Financial Results
(dollars in thousands, except per share data)
| Three Months Ended | ||||||||||||||||
| June 30, | Change | |||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||
| Revenues, net | $ | 2,864 | $ | 4,083 | (1,219 | ) | (29.9 | ) | ||||||||
| Gross loss | $ | (293 | ) | $ | (635 | ) | 342 | (53.9 | ) | |||||||
| Operating loss | $ | (3,291 | ) | $ | (2,981 | ) | (310 | ) | 10.4 | |||||||
| Net loss from continuing operations | $ | (3,265 | ) | $ | (3,296 | ) | 31 | (0.9 | ) | |||||||
| Basic and diluted loss per common share from continuing operations | $ | (15.60 | ) | $ | (3,279.60 | ) | 3,264.00 | (99.5 | ) | |||||||
| Adjusted EBITDA (a) | $ | (3,503 | ) | $ | (2,640 | ) | (863 | ) | (32.7 | ) | ||||||
| Six Months Ended | ||||||||||||||||
| June 30, | Change | |||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||
| Revenues, net | $ | 6,970 | $ | 10,039 | (3,069 | ) | (30.6 | ) | ||||||||
| Gross loss | $ | (927 | ) | $ | (1,244 | ) | 317 | (25.5 | ) | |||||||
| Operating loss | $ | (6,329 | ) | $ | (5,552 | ) | (777 | ) | 14.0 | |||||||
| Net loss from continuing operations | $ | (6,284 | ) | $ | (6,571 | ) | 287 | (4.4 | ) | |||||||
| Basic and diluted loss per common share from continuing operations | $ | (52.33 | ) | $ | (9,267.98 | ) | 9,215.65 | (99.4 | ) | |||||||
| Adjusted EBITDA (a) | $ | (6,098 | ) | $ | (4,960 | ) | (1,138 | ) | (22.9 | ) | ||||||
(a) Adjusted EBITDA is a non-GAAP financial measure. Please see “Notes Regarding Non-GAAP Financial Information” for additional information regarding our use of non-GAAP financial measures. Refer to Tables A at the end of this release for reconciliations of adjusted amounts to the closest corresponding GAAP financial measures.
Summary Product Line Results
(in thousands)
| Three Months Ended | ||||||||||||||||||||||||
| June 30, | ||||||||||||||||||||||||
| 2026 | 2025 | Change | ||||||||||||||||||||||
| $ | Cartons | $ | Cartons | $ | Cartons | |||||||||||||||||||
| Contract manufacturing | ||||||||||||||||||||||||
| Cigarettes | 2,297 | 93 | 2,715 | 594 | (418 | ) | (501 | ) | ||||||||||||||||
| Filtered cigars | 692 | 87 | 1,319 | 172 | (627 | ) | (85 | ) | ||||||||||||||||
| Other tobacco products | (151 | ) | (29 | ) | 94 | 14 | (245 | ) | (43 | ) | ||||||||||||||
| Total contract manufacturing | 2,838 | 151 | 4,128 | 780 | (1,290 | ) | (629 | ) | ||||||||||||||||
| VLN® | 26 | - | (45 | ) | (1 | ) | 71 | 1 | ||||||||||||||||
| Total product line revenues | 2,864 | 151 | 4,083 | 779 | (1,219 | ) | (628 | ) | ||||||||||||||||
| Six Months Ended | ||||||||||||||||||||||||
| June 30, | ||||||||||||||||||||||||
| 2026 | 2025 | Change | ||||||||||||||||||||||
| $ | Cartons | $ | Cartons | $ | Cartons | |||||||||||||||||||
| Contract manufacturing | ||||||||||||||||||||||||
| Cigarettes | 5,144 | 211 | 7,729 | 1,025 | (2,585 | ) | (814 | ) | ||||||||||||||||
| Filtered cigars | 1,565 | 200 | 2,422 | 331 | (857 | ) | (131 | ) | ||||||||||||||||
| Other tobacco products | 238 | 15 | 88 | 14 | 150 | 1 | ||||||||||||||||||
| Total contract manufacturing | 6,947 | 426 | 10,239 | 1,370 | (3,292 | ) | (944 | ) | ||||||||||||||||
| VLN® | 23 | 1 | (200 | ) | (3 | ) | 223 | 4 | ||||||||||||||||
| Total product line revenues | 6,970 | 427 | 10,039 | 1,367 | (3,069 | ) | (940 | ) | ||||||||||||||||
About 22nd Century Group, Inc.
22nd Century Group is pioneering the tobacco harm reduction movement by enabling smokers to take control of their nicotine consumption.
Our Technology is Tobacco
Our proprietary non-GMO reduced nicotine tobacco plants were developed using our patented technologies that regulate alkaloid biosynthesis activities resulting in a tobacco plant that contains
Our Products
We created our flagship product, the VLN® cigarette using our low nicotine tobacco, to give traditional cigarette smokers an authentic and familiar alternative in the form of a combustible cigarette that helps them take control of their nicotine consumption. VLN® cigarettes have
FDA Authorization and Scientific Foundation
VLN® low nicotine combustible cigarettes were authorized in December 2021, making them the first and still the only combustible cigarettes authorized by the U.S. Food and Drug Administration specifically to help reduce nicotine consumption.
Decades of independent clinical research and peer-reviewed studies—evaluated as part of the FDA’s Modified Risk Tobacco Product (MRTP) authorization process—demonstrated that reducing nicotine content can decrease nicotine intake, increase quit attempts, and reduce overall exposure to nicotine.
FDA-authorized VLN® claims include:
| ● | “ | |
| ● | “Helps reduce your nicotine consumption” | |
| ● | “Greatly reduces your nicotine consumption” | |
| ● | “Helps you smoke less” |
VLN® and Helps You Smoke Less® are registered trademarks of 22nd Century Limited LLC.
Learn more at xxiicentury.com, on X (formerly Twitter), on LinkedIn, and on YouTube.
Learn more about VLN® at tryvln.com.
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements, including but not limited to our full year business outlook. 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. Forward-looking statements include, but are not limited to, statements regarding (i) our cost reduction initiatives, (ii) our expectations regarding regulatory enforcement, including our ability to receive an exemption from new regulations, and (iii) our financial and operating performance. 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 26, 2026. 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.
Notes regarding Non-GAAP Financial Information
In addition to the Company’s reported results in accordance with generally accepted accounting principles in the United States of America (“GAAP”), the Company provides EBITDA and Adjusted EBITDA.
In order to calculate EBITDA, the Company adjusts net (loss) income by adding back interest expense (income), provision (benefit) for income taxes, and depreciation and amortization expense. Adjusted EBITDA consists of EBITDA adjusted by the Company for certain non-cash and/or non-operating expenses, including adding back equity-based employee compensation expense, restructuring and restructuring-related charges such as impairment, acquisition and transaction costs, and other unusual or infrequently occurring items, if applicable, such as inventory reserves and adjustments, master settlement agreement non-participating manufacturer settlement credits, gains or losses on disposal of property, plant and equipment, and gains or losses on investments.
The Company believes that the presentation of EBITDA and Adjusted EBITDA are important financial measures that supplement discussion and analysis of its financial condition and results of operations and enhances an understanding of its operating performance. While management considers EBITDA and Adjusted EBITDA to be important, these financial performance measures 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) income, 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.
Investor Relations & Media Contact
Daniel Otto
Chief Financial Officer & Investor Relations
22nd Century Group
investorrelations@xxiicentury.com
22nd CENTURY GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(amounts in thousands, except share and per-share data)
| June 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 6,058 | $ | 7,149 | ||||
| Accounts receivable, net | 3,575 | 3,594 | ||||||
| Inventories | 4,536 | 4,326 | ||||||
| Prepaid expenses and other current assets | 2,650 | 2,562 | ||||||
| Total current assets | 16,819 | 17,631 | ||||||
| Property, plant and equipment, net | 2,596 | 2,440 | ||||||
| Operating lease right-of-use assets, net | 647 | 728 | ||||||
| Intangible assets, net | 6,058 | 6,224 | ||||||
| Other assets | 46 | — | ||||||
| Total assets | $ | 26,166 | $ | 27,023 | ||||
| LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Notes and loans payable-current | $ | 616 | $ | 204 | ||||
| Operating lease obligations | 176 | 168 | ||||||
| Accounts payable | 695 | 1,000 | ||||||
| Accrued expenses and other current liabilities | 1,074 | 836 | ||||||
| Accrued excise taxes and fees | 2,463 | 3,343 | ||||||
| Contract liabilities | 1,430 | 1,721 | ||||||
| Total current liabilities | 6,454 | 7,272 | ||||||
| Long-term liabilities: | ||||||||
| Notes and loans payable | 446 | 504 | ||||||
| Operating lease obligations | 511 | 601 | ||||||
| Other long-term liabilities | 114 | 154 | ||||||
| Total liabilities | 7,525 | 8,531 | ||||||
| Mezzanine equity: | ||||||||
| Series A convertible preferred shares, | — | 2,734 | ||||||
| Total mezzanine equity | — | 2,734 | ||||||
| Shareholders’ equity: | ||||||||
| Series B convertible preferred shares, | — | — | ||||||
| Common stock, $.00001 par value, 500,000,000 shares authorized, 502,839 shares issued and outstanding at June 30, 2026 and 25,709 at December 31, 2025, respectively | — | — | ||||||
| Capital in excess of par value | 424,173 | 414,683 | ||||||
| Accumulated deficit | (405,532 | ) | (398,925 | ) | ||||
| Total shareholders’ equity | 18,641 | 15,758 | ||||||
| Total liabilities, mezzanine equity and shareholders’ equity | $ | 26,166 | $ | 27,023 | ||||
22nd CENTURY GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
(amounts in thousands, except share and per-share data)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues, net | $ | 2,864 | $ | 4,083 | $ | 6,970 | $ | 10,039 | ||||||||
| Cost of goods sold | 1,621 | 2,863 | 3,546 | 5,747 | ||||||||||||
| Excise taxes and fees on products | 1,536 | 1,855 | 4,351 | 5,536 | ||||||||||||
| Gross loss | (293 | ) | (635 | ) | (927 | ) | (1,244 | ) | ||||||||
| Operating expenses: | ||||||||||||||||
| Sales, general and administrative | 2,703 | 2,119 | 4,822 | 3,918 | ||||||||||||
| Research and development | 295 | 227 | 580 | 390 | ||||||||||||
| Total operating expenses | 2,998 | 2,346 | 5,402 | 4,308 | ||||||||||||
| Operating loss from continuing operations | (3,291 | ) | (2,981 | ) | (6,329 | ) | (5,552 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Other expense | — | (12 | ) | — | (174 | ) | ||||||||||
| Interest income | 43 | 14 | 74 | 30 | ||||||||||||
| Interest expense | (17 | ) | (351 | ) | (29 | ) | (909 | ) | ||||||||
| Total other income (expense), net | 26 | (349 | ) | 45 | (1,053 | ) | ||||||||||
| Loss from continuing operations before income taxes | (3,265 | ) | (3,330 | ) | (6,284 | ) | (6,605 | ) | ||||||||
| (Benefit) provision for income taxes | — | (34 | ) | — | (34 | ) | ||||||||||
| Net loss from continuing operations | $ | (3,265 | ) | $ | (3,296 | ) | $ | (6,284 | ) | $ | (6,571 | ) | ||||
| Discontinued operations: | ||||||||||||||||
| Loss from discontinued operations before income taxes | $ | (81 | ) | $ | (111 | ) | $ | (323 | ) | $ | (1,164 | ) | ||||
| Provision for income taxes | — | — | — | — | ||||||||||||
| Net loss from discontinued operations | $ | (81 | ) | $ | (111 | ) | $ | (323 | ) | $ | (1,164 | ) | ||||
| Net loss | $ | (3,346 | ) | $ | (3,407 | ) | $ | (6,607 | ) | $ | (7,735 | ) | ||||
| Comprehensive loss | $ | (3,346 | ) | $ | (3,407 | ) | $ | (6,607 | ) | $ | (7,735 | ) | ||||
| Net loss | $ | (3,346 | ) | $ | (3,407 | ) | $ | (6,607 | ) | $ | (7,735 | ) | ||||
| Deemed dividends | (17,545 | ) | — | (18,134 | ) | — | ||||||||||
| Dividend for redemption of Series A Convertible Preferred Stock | — | — | (6,916 | ) | — | |||||||||||
| Dividend for redemption of Series B Convertible Preferred Stock | (870 | ) | — | (870 | ) | — | ||||||||||
| Net loss available to common shareholders | $ | (21,761 | ) | $ | (3,407 | ) | $ | (32,527 | ) | $ | (7,735 | ) | ||||
| Basic and diluted loss per share: | ||||||||||||||||
| Basic and diluted loss per common share from continuing operations | $ | (15.60 | ) | $ | (3,279.60 | ) | $ | (52.33 | ) | $ | (9,267.98 | ) | ||||
| Basic and diluted loss per common share from discontinued operations | $ | (0.39 | ) | $ | (110.45 | ) | $ | (2.69 | ) | $ | (1,641.75 | ) | ||||
| Basic and diluted loss available to common shareholders per common share | $ | (104.00 | ) | $ | (3,390.05 | ) | $ | (270.84 | ) | $ | (10,909.73 | ) | ||||
| Weighted average shares outstanding - basic and diluted | 209,241 | 1,005 | 120,095 | 709 | ||||||||||||
Table A – Reconciliations of Non-GAAP Measures
(dollars in thousands, except share and per-share data)
Below is a table containing information relating to the Company’s Net loss, EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2026 and 2025, including a reconciliation of these Non-GAAP measures for such periods.
| Three Months Ended | ||||||||||||
| June 30, | ||||||||||||
| Amounts in thousands ( | ||||||||||||
| except share and per share data | ||||||||||||
| (UNAUDITED) | ||||||||||||
| $ Change | ||||||||||||
| 2026 | 2025 | fav / (unfav)1 | ||||||||||
| Net loss from continuing operations | $ | (3,265 | ) | $ | (3,296 | ) | $ | 31 | ||||
| Interest (income)/expense, net | (26 | ) | 337 | (363 | ) | |||||||
| Provision (benefit) for income taxes | — | (34 | ) | 34 | ||||||||
| Amortization and depreciation | 209 | 234 | (25 | ) | ||||||||
| EBITDA | $ | (3,082 | ) | $ | (2,759 | ) | $ | (323 | ) | |||
| Adjustments: | ||||||||||||
| Change in fair value of warrant liabilities | — | 12 | (12 | ) | ||||||||
| Excise taxes and fees on products - MSA NPM settlement credits | (692 | ) | — | — | ||||||||
| Equity-based employee compensation expense | 271 | 107 | 164 | |||||||||
| Adjusted EBITDA | $ | (3,503 | ) | $ | (2,640 | ) | $ | (863 | ) | |||
| Adjusted EBITDA loss per common share | $ | (16.74 | ) | $ | (2,625.17 | ) | $ | 2,608.42 | ||||
| Weighted average common shares outstanding - basic and diluted | 209,241 | 1,005 | ||||||||||
| Six Months Ended | ||||||||||||
| June 30, | ||||||||||||
| Amounts in thousands ( | ||||||||||||
| except share and per share data | ||||||||||||
| (UNAUDITED) | ||||||||||||
| $ Change | ||||||||||||
| 2026 | 2025 | fav / (unfav)1 | ||||||||||
| Net loss from continuing operations | $ | (6,284 | ) | $ | (6,571 | ) | $ | 287 | ||||
| Interest (income)/expense, net | (45 | ) | 879 | (924 | ) | |||||||
| Provision (benefit) for income taxes | — | (34 | ) | 34 | ||||||||
| Amortization and depreciation | 415 | 459 | (44 | ) | ||||||||
| EBITDA | $ | (5,914 | ) | $ | (5,267 | ) | $ | (647 | ) | |||
| Adjustments: | ||||||||||||
| Change in fair value of warrant liabilities | — | 174 | (174 | ) | ||||||||
| Excise taxes and fees on products - MSA NPM settlement credits | (692 | ) | — | (692 | ) | |||||||
| Equity-based employee compensation expense | 508 | 133 | 375 | |||||||||
| Adjusted EBITDA | $ | (6,098 | ) | $ | (4,960 | ) | $ | (1,138 | ) | |||
| Adjusted EBITDA loss per common share | $ | (50.78 | ) | $ | (6,994.27 | ) | $ | 6,943.49 | ||||
| Weighted average common shares outstanding - basic and diluted | 120,095 | 709 | ||||||||||
1Fav = Favorable variance, which increases EBITDA and Adjusted EBITDA; Unfav = unfavorable variance, which reduces EBITDA and Adjusted EBITDA
