Emerging Growth Research Releases Q1 2025 Update Report on 22nd Century Group

New York, New York--(Newsfile Corp. - May 21, 2025) - Emerging Growth Research today released its latest quarterly update report on 22nd Century Group, Inc. (NASDAQ: XXII), following the Company's Q1 2025 results. The report reflects the continued operational progress made under new management and the outlook for meaningful financial improvement in 2025.

22nd Century Group Q1 2025 Financial Highlights:

• Q1 2025 revenue of $6.0 million, up 48% from Q4 2024

• Q1 2025 gross profit improved to $(0.6) million from $(1.3) million in Q4 2024

• Operating loss narrowed significantly to $(2.6) million from $(4.4) million in Q1 2024

• EBITDA improved to $(2.5) million from $(4.2) million in Q1 2024

• Debt reduced to approximately $3 million as of May 7, 2025, now in net cash positive position

• Management reaffirms guidance for EBITDA breakeven by Q4 2025

According to Emerging Growth Research's analysis, the 22nd Century Group reported Q1 2025 revenue of $6.0 million, down 8% year-over-year from $6.5 million in Q1 2024, but up significantly by 48% compared to $4.0 million in Q4 2024. This sequential growth indicates the Company has regained some previously lost volume following 2024 CMO price hikes, with profitable contracts now in place.

The full report details Emerging Growth Research's analysis of 22nd Century Group, a U.S.-based pure-play contract manufacturer for combustible tobacco products and the sole provider of VLN® reduced-nicotine cigarettes. Emerging Growth Research maintains a bullish outlook on XXII based on its recent performance and strategic positioning.

The Emerging Growth Research report highlights that 22nd Century Group's cash position has strengthened following a Q2 2025 partial warrant inducement that generated $5.4 million in gross proceeds, of which $1.0 million was used to repay outstanding debt obligations. This transaction has reduced total debt by $3.8 million year-to-date to approximately $3 million as of May 7, 2025, leaving the Company in a net cash positive position. The analysis indicates that cash reserves now appear sufficient to maintain operations through year-end 2025.