22nd Century Group reported net sales revenue of $6.8 million for the first quarter of 2021 compared to $7.1 million in the 2020 first quarter.
Gross profit improved by $360,000 to $647 thousand; gross profit margin improved by 540 basis points. Gross profit margin improved year-over-year for the fifth consecutive quarter.
Net loss for the first quarter of 2021 was $5 million compared to $4 million in the same quarter last year. The change in net loss was driven by investment in anticipation of a modified-risk tobacco product (MRTP) designation of 22nd Century’s VLN cigarettes.
Adjusted earnings before interest, taxes, depreciation and amortization for the first quarter of 2021 was a $4.4 million loss compared to a $3.2 million loss for the first quarter of 2020.
In a press release, the company said its financial position is strong, with cash, cash equivalents and short-term investment securities totaling $30.9 million at the end of the first quarter of 2021.
“Our 2021 is off to an exciting start as we anticipate achieving multiple key milestones that will dramatically expand our commercial opportunities in both our tobacco and hemp/cannabis franchises,” said James A. Mish, CEO of 22nd Century Group.
“I remain highly confident in our MRTP authorization. We continue to steadily increase our advocacy activities at both the federal and state levels to achieve MRTP authorization in support of this critical public health issue. In addition to our primary VLN launch strategy to go to market within 90 days of authorization, we remain willing to license our technology to every cigarette manufacturer to help them join us in our efforts to reduce the harm caused by smoking and to protect future generations from ever becoming addicted to cigarettes.”