Exhibit
99.1
22nd
Century Group Reports Second Quarter 2026 Financial Results
Advances
VLN® Commercialization Through Expanded Retail Support and Brand-Building Initiatives
MOCKSVILLE,
N.C., August 13, 2026 —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 $2.9 million from $4.1 million. |
| ● | Gross
profit (loss) improved to $(0.3) million, compared to $(0.6) million. |
| ● | Operating
expenses were $3.0 million, increased from $2.4 million. |
| ● | Operating
loss increased to $3.3 million, compared to $3.0 million. |
| ● | Net
loss was $3.3 million, compared to net loss of $3.0 million. |
| ● | Adjusted
EBITDA loss was $3.5 million, compared to a loss of $2.6 million. |
| ● | Ended
the quarter with cash and cash equivalents of $6.1 million. |
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. |
| ● | 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 $2.3 million, decreased from $2.8 million in the first quarter of 2026
on fewer cartons sold, reflecting a strategic shift away from high volume and low priced
CMO export customers and toward higher margin VLN® products. Additionally,
continued expansion of natural style cigarette products launched in 2025 is expected to accelerate
revenue and margin growth in this category in the second half of 2026. |
| ● | Filtered
cigar net revenues were $0.7 million compared to $0.9 million. |
| ● | Distribution
net revenues from other tobacco products for the period was $(0.2) million, reflecting a
one-time charge for reversal and write-off of aged inventory discontinued by our customer. |
| ● | VLN®
cigarette net revenues of $0.03 million, increased from negligible revenue in the first quarter
of 2026 reflect growing reorder activity primarily for our Pinnacle® partner
brand VLN® products, offset by current period price promotions targeting
expanded awareness, consumer trial and adoption. Additionally, net revenue reflects accruals
for product previously sold in prior years that will be returned or exchanged. |
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 95% less nicotine than traditional tobacco plants.
Our extensive patent portfolio has been developed to ensure that our high-quality tobacco can be grown commercially at scale. We continue
to develop our intellectual property to ensure our ongoing leadership in the tobacco harm reduction movement.
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 95% less nicotine compared to traditional cigarettes and have been proven to allow consumers to greatly
reduce their nicotine consumption.
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:
| ● | “95%
less nicotine” |
| ● | “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, $0.00001 par value; 10,000,000 shares authorized, 0 shares issued and outstanding at June 30, 2026 and 9,650 at December 31, 2025, respectively | |
| — | | |
| 2,734 | |
| Total mezzanine equity | |
| — | | |
| 2,734 | |
| | |
| | | |
| | |
| Shareholders’ equity: | |
| | | |
| | |
| Series B convertible preferred shares, $0.00001 par value; 10,000,000 shares authorized, 8,505 shares issued and outstanding at June 30, 2026 and 0 at December 31, 2025, respectively | |
| — | | |
| — | |
| 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 ($000’s) | |
| | |
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 ($000’s) | |
| | |
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
