22nd Century Group, Inc. (NASDAQ: XXII) reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, the company generated revenues of $5,946,000, a decrease of 24.5% from $7,871,000 in the same period of 2023. For the nine months, revenues totaled $20,361,000, down 18.1% from $24,848,000 year-over-year. The decline in revenue was attributed to lower sales volumes, particularly in the filtered cigars segment, which saw a drop from $4,088,000 in Q3 2023 to $1,664,000 in Q3 2024.

The company reported a gross loss of $(588,000) for Q3 2024, compared to a gross profit of $77,000 in Q3 2023. For the nine months, the gross loss increased to $(1,147,000) from $(867,000) in the prior year. Operating losses from continuing operations improved to $(3,377,000) in Q3 2024, down from $(8,253,000) in Q3 2023, and $(9,858,000) for the nine months, compared to $(30,699,000) in the same period last year. The net loss from continuing operations for Q3 2024 was $(3,585,000), significantly reduced from $(8,081,000) in Q3 2023.

The company’s total current liabilities decreased to $14,439,000 as of September 30, 2024, from $25,034,000 at the end of 2023, contributing to a total liabilities reduction from $35,913,000 to $22,706,000. Total shareholders' equity improved to $3,472,000, compared to a deficit of $(8,410,000) at the end of 2023.

Strategically, 22nd Century Group executed a 1-for-16 reverse stock split on April 2, 2024, to comply with Nasdaq listing requirements. The company has also been actively pursuing financing through securities issuance and asset sales, reflecting ongoing efforts to stabilize its financial position amid substantial doubt about its ability to continue as a going concern.

Cash and cash equivalents increased to $5,341,000 as of September 30, 2024, from $2,058,000 at the end of 2023. The company reported a net cash used in operating activities of $(9,947,000) for the nine months, a significant improvement from $(50,184,000) in the same period of 2023, driven by lower net losses and reduced working capital needs.

Overall, while 22nd Century Group faced challenges with declining revenues and gross losses, it demonstrated improved operational efficiency and a stronger balance sheet compared to the previous fiscal period.