22nd Century Group Reports Revenue Gains In Q3, Seeks To Monetize Its Hemp & Cannabis Plant Lines

Plant-based biotech company 22nd Century Group, Inc. XXII reported its results on Thursday for the third quarter ended September 30, revealing net sales of $7.8 million for the period, up 6.9% from the prior year's period.

Moreover, its year-to-date net sales totaled $23 million, up 11% from the corresponding period of last year.

The Buffalo, New York-based company, involved in cannabis and hemp research, as well as tobacco harm reduction, reduced nicotine tobacco and improving health and wellness via plant science, also disclosed that it is in the process of applying for a USDA Organic Certification for its hemp farm, Needle Rock Farms.

James A. Mish, CEO of 22nd Century Group, said he is proud to "begin to monetize our highly disruptive hemp/cannabis plant lines and IP."

Q3 2021 Financial Highlights

  • Gross profit for the third quarter of 2021 improved by $87 thousand, or 24% to $449 thousand compared to the prior-year period, representing a seventh consecutive quarter of year-over-year improvement in gross profit.
  • Total operating expenses for the third quarter of 2021 increased by $3.5 million compared to the prior-year period.
  • Sales, general and administrative expenses increased by $3.6 million compared to the prior-year period.
  • Research and development expense for the third quarter of 2021 was favorably lower by $52 thousand compared to the prior-year period.
  • Operating loss for the third quarter of 2021 was $7.9 million, an increase of $3.4 million compared to the prior-year period.
  • Net loss in the third quarter of 2021 was $9.4 million, increasing $5.1 million compared to the prior-year period.
  • The company recorded a non-cash unrealized loss of $1.9 million, which was related to its fair value adjustments for investment in Aurora Cannabis ACB stock warrants and Exactus common stock.
  • For the first nine months of 2021, net cash used in operating activities was $18.2 million.
  • The company ended the quarter with a cash position of $55.2 million.

Q3 2021 Operational Highlights – Hemp & Cannabis Franchise

  • 22nd Century Group and KeyGene reached a collaborative agreement with the National Institute of Science and Technology to establish the first-ever quality and measurement standards for cannabinoids, terpenes
  • and other compounds across the hemp/cannabis industry.
  • 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.

More recent news from 22nd Century Group:

XXII Price Action

22nd Century Group's shares traded 1.6722% lower at $2.94 per share at the time of writing on Thursday late morning.

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