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22Nd Century Group, Inc. (XXII) SEC Filing 10-Q Quarterly Report for the period ending Thursday, March 31, 2022

22Nd Century Group, Inc.

CIK: 1347858 Ticker: XXII

Exhibit 99.1

22nd Century Group Reports Business Highlights and Financial Results for the Fourth Quarter and Full Year 2021

Secured FDA MRTP Authorization for VLN® King and VLN® Menthol King Reduced Nicotine Content Cigarettes
Advancing to U.S. Pilot Market Launch in Chicago
Announced Circle K as First VLN® Retail Trade Partner
Announced South Korea as the First International VLN® Launch
Commenced Hemp/Cannabis Revenue in the Fourth Quarter of 2021
Full Year Net Sales Up 10.1% Year-Over-Year

BUFFALO, N.Y., March 1, 2022 (Globe Newswire)

— 22nd Century Group, Inc. (Nasdaq: XXII), a leading agricultural biotechnology company focused on tobacco harm reduction, reduced nicotine tobacco, and improving health and wellness through modern plant science, today reported results for the fourth quarter and full year ended December 31, 2021, and provided an update on recent business highlights. The Company will host a live audio webcast today at 10:00 a.m. ET.

“The past several months were incredible as 22nd Century transforms from a pure science and contract manufacturing company into a company selling branded VLN® cigarettes, licensing valuable biotechnology IP, and supplying highly specialized plant lines in large and dynamic global end markets,” said James A. Mish, chief executive officer of 22nd Century Group. “We secured our highly-anticipated FDA MRTP designation on December 23, and immediately moved to launch our VLN® pilot program by the end of March. The first VLN® cigarettes packaged with the FDA’s added claim of ‘Helps You Smoke Less’ rolled off our manufacturing lines in late January. Additionally, we have finalized our point-of-sale materials to educate adult smokers about how to use VLN® to change their relationship with highly addictive nicotine cigarettes, and we have worked alongside Circle K to prepare for our first launch in more than 150 metro Chicago stores before rolling VLN® out nationwide. Our mission is to get this product as quickly as possible into the hands of adult smokers, 70% of whom want to quit and are looking for new and innovative products to help them smoke less.

“We remain committed to making VLN® products readily available to as broad a market as possible, including both U.S. and international markets,” Mish added. “We expect our first global market shipment and revenue to South Korea will commence by the end of March, and we are dedicated to exploring licensing of our VLN® tobacco and IP as well as partnerships that can help expand the availability of VLN® and reduced nicotine content products across all markets.”

“Rather than creating or sustaining nicotine addiction like every other product in the tobacco category, VLN® is a combustible tobacco cigarette designed to help adult smokers smoke less, which makes it the most potentially disruptive product to hit the tobacco industry in decades,” said Michael Zercher, Chief Operating Officer. “With over 70% of adult smokers wanting to quit and 60% of adult smokers in our studies telling us they are likely to use VLN®, we look forward to bringing VLN® to market and doing our part to reduce the harm caused by smoking.”

Recent Key Financial and Business Highlights

Tobacco Franchise

Secured the world’s first and only MRTP designation for a combustible cigarette for VLN® King and VLN® Menthol King 95% reduced nicotine content cigarettes, announced December 23, 2021 by the FDA.
oFDA proactively added “Helps You Smoke Less” evidence-based headline claim to Company’s requested claims
Announced Circle K will be the VLN® pilot launch partner, initially selling in more than 150 Chicago retail stores to optimize 22nd Century’s marketing mix ahead of full national launch.
oVLN® will be positioned in the premium pricing segment of the cigarette market, with corresponding margins.
oState regulatory approval process is underway for tobacco sales authorizations.
oAdvancing discussions with multiple additional retail trade partners to expand the regional and national sales reach of VLN®.
The Company continued the international launch process for VLN®, identifying South Korea as the initial launch market.
oFirst shipment expected by the end of March.
oThe South Korean market includes a well-developed interest in alternative tobacco products, an ideal market in which to test VLN®’s global appeal.
oContinuing launch process in additional markets in Asia and Europe with limited regulatory barriers while also leveraging VLN®’s MRTP authorization toward seeking approval in additional markets with higher regulatory barriers.
Advancing discussions with tobacco and pharmaceutical companies toward licensing and strategic partnerships to scale VLN®’s market penetration.
22nd Century Group continued its support of transformative public health policies to ban menthol in cigarettes and mandate reduced nicotine content in all tobacco products.
oThe Company could have the only combustible menthol cigarette exempt from the FDA’s proposed menthol cigarette ban, providing a critical off-ramp to help current menthol smokers smoke less.

The following information was filed by 22Nd Century Group, Inc. (XXII) on Tuesday, March 1, 2022 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside 22Nd Century Group, Inc.'s 10-Q Quarterly Report:

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Document And Entity Information
Consolidated Balance Sheets
Consolidated Balance Sheets (Parenthetical)
Consolidated Statements Of Cash Flows
Consolidated Statements Of Changes In Shareholders' Equity
Consolidated Statements Of Operations And Comprehensive Loss
Capital Raise And Warrant Exercise
Capital Raise And Warrant Exercise - Capital Raise (Details)
Capital Raise And Warrant Exercise - Warrants (Details)
Commitments &Amp; Contingencies (Tables)
Commitments And Contingencies
Commitments And Contingencies - Licenses (Details)
Commitments And Contingencies - Mrtp, Litigation (Details)
Earnings Per Share
Earnings Per Share (Details)
Earnings Per Share (Tables)
Equity Based Compensation
Equity Based Compensation - Fair Value Assumptions (Details)
Equity- Based Compensation (Tables)
Equity- Based Compensation - Rsus (Details)
Equity- Based Compensation - Stock Option Activity (Details)
Equity-Based Compensation (Details)
Equity-Based Compensation - Compensation Expense And Unrecognized Compensation (Details)
Fair Value Measurements And Short-Term Investments
Fair Value Measurements And Short-Term Investments (Tables)
Fair Value Measurements And Short-Term Investments - Available-For-Sale Debt Securities (Details)
Fair Value Measurements And Short-Term Investments - Changes In Fair Value, Level 3 (Details)
Fair Value Measurements And Short-Term Investments - Maturity Of Available-For-Sale Securities By Contractual Maturity (Details)
Fair Value Measurements And Short-Term Investments - Recurring (Details)
Intangible Assets
Intangible Assets (Details)
Intangible Assets (Tables)
Inventory
Inventory (Details)
Inventory (Tables)
Investments &Amp; Other Assets
Investments &Amp; Other Assets (Tables)
Investments &Amp; Other Assets - Investment In Change Agronomy (Details)
Investments &Amp; Other Assets - Total Carrying Value (Details)
Investments And Other Assets - Investment In Panacea Life Sciences, Inc (Details)
Nature Of Business And Summary Of Significant Accounting Policies
Nature Of Business And Summary Of Significant Accounting Policies (Details)
Nature Of Business And Summary Of Significant Accounting Policies (Policies)
Notes Payable
Notes Payable (Details)
Notes Payable (Tables)
Property, Plant And Equipment, Net
Property, Plant And Equipment, Net (Details)
Property, Plant And Equipment, Net (Tables)
Revenue Recognition
Revenue Recognition (Details)
Revenue Recognition (Tables)
Right-Of-Use Assets, Lease Obligations And Other Leases (Details)
Right-Of-Use Assets, Lease Obligations, And Other Leases
Right-Of-Use Assets, Lease Obligations, And Other Leases (Tables)
Severance Liability
Severance Liability (Details)

Material Contracts, Statements, Certifications & more

22Nd Century Group, Inc. provided additional information to their SEC Filing as exhibits

Ticker: XXII
CIK: 1347858
Form Type: 10-Q Quarterly Report
Accession Number: 0001558370-22-007204
Submitted to the SEC: Thu May 05 2022 6:09:42 AM EST
Accepted by the SEC: Thu May 05 2022
Period: Thursday, March 31, 2022
Industry: Cigarettes

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