Sheridan, Wyoming--(Newsfile Corp. - April 10, 2025) - Emerging Growth Research is pleased to release its latest quarterly update on 22nd Century Group, Inc. (NASDAQ: XXII), following the Company's Q4 2024 results. The report reflects the continued operational progress made under new management and the outlook for meaningful financial improvement in 2025.

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Q4 2024 Financial Highlights:

• Revenue was $4.0 million, down 45% YoY, reflecting expected attrition due to CMO contract price hikes.
• Gross profit improved YoY to $(1.3) million from $(7.8) million.
• Operating loss narrowed significantly YoY to $(4.1) million from $(14.2) million.
• Net income loss from continuing operations was $(4.2) million vs. $(22.1) million in Q4 2023.
• EBITDA was $(3.8) million in Q4 2024 versus $(14.9) million YoY.

Management believes customer attrition in its Contract Manufacturing Operations (CMO) segment has ended and operations have now stabilized. Additionally, the Company anticipates a strong ramp-up in its very-low-nicotine (VLN®) product line, aided by a revamped marketing strategy. Management maintains guidance for EBITDA breakeven in Q4 2025.

Despite prior challenges including dilution, restructuring, and bankruptcy risk in 2023, the Company has repositioned itself for growth. XXII is transitioning from a turnaround story to a growth-oriented player in the harm-reduction tobacco market.

22nd Century Group, Inc. is a U.S.-based pure-play contract manufacturer for combustible tobacco products and the sole provider of VLN® reduced-nicotine cigarettes. The Company is pioneering nicotine harm reduction, offering smokers an innovative path to reduce nicotine consumption. Headquartered in Mocksville, North Carolina, the Company was founded in 1998.

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