22nd Century (XXII) AI Stock Analysis

• Market Cap: $4.88M
• Dividend Yield: N/A
• Average Volume (3M): 2.49M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.23
• Revenue Growth: -34.81%
• EPS Growth: 99.30%
• Country: US
• Employees: 56
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): -1.06
• Shares Outstanding: 3,781,492
• 10 Day Avg. Volume: 328,967
• 30 Day Avg. Volume: 2,485,312
• PEG Ratio: -0.02
• Price to Book (P/B): 4.46
• Price to Sales (P/S): 1.51
• P/FCF Ratio: -1.23
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: -1.19
• Enterprise Value/Ebitda: -0.36
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $1.00 ▼(-8.26% Downside)

22nd Century's overall stock score reflects significant financial challenges, with declining revenues and persistent losses weighing heavily. While recent strategic shifts and corporate events provide a more optimistic outlook, the technical analysis and valuation metrics remain weak. The company's efforts to improve its balance sheet and focus on higher-margin products are positive, but the path to profitability is uncertain, resulting in a cautious overall score.

Positive Factors

Debt-Free Status

Achieving a debt-free status enhances financial flexibility, reducing interest expenses and allowing more resources to be allocated towards growth initiatives.

Strategic Shift to Higher Margin Products

Focusing on higher-margin products can improve profitability and stabilize financial performance, supporting long-term growth and shareholder value.

VLN Product Expansion

Expanding product availability increases market penetration and brand recognition, potentially driving revenue growth and competitive positioning.

Negative Factors

Continued Losses

Ongoing losses indicate operational inefficiencies and financial strain, which can hinder the company's ability to invest in growth and innovation.

Net Revenue Decline

Declining revenue trends can challenge the company's ability to achieve profitability and may reflect issues in market demand or competitive pressures.

Uncertainty in Profitability Timeline

Uncertainty in reaching profitability can affect investor confidence and limit strategic options, impacting long-term business sustainability.

22nd Century Business Overview & Revenue Model

Company Description

22nd Century Group, Inc. (XXII) is a biotechnology company focused on improving health and well-being through the development and commercialization of innovative plant-based products. The company operates primarily in the sectors of biotechnology and agriculture, specializing in the genetic engineering of tobacco and hemp plants to create lower nicotine tobacco and high-CBD hemp strains. Its core products include reduced nicotine tobacco cigarettes and various hemp-derived products, which aim to enhance consumer choices for healthier alternatives in the smoking and wellness markets.

How the Company Makes Money

22nd Century generates revenue through multiple channels, including the sale of its proprietary reduced nicotine tobacco products, which are marketed as a healthier alternative to conventional cigarettes. The company also earns revenue from licensing agreements related to its genetic engineering technology, which allows other companies to produce modified plants. Additionally, 22nd Century has entered into strategic partnerships with major tobacco companies to develop and commercialize its products, further enhancing its revenue potential. The company may also benefit from grants and funding aimed at public health initiatives related to smoking cessation.

22nd Century Financial Statement Overview

Summary

22nd Century faces significant financial challenges across all verticals. The income statement shows declining revenues and persistent losses, while the balance sheet reflects high leverage and negative equity returns. Cash flow remains negative, with limited signs of improvement. The company needs to address operational inefficiencies and improve revenue generation to stabilize its financial position.

Income Statement

The income statement reveals significant challenges for 22nd Century. The company has experienced declining revenue, with a negative revenue growth rate of -10.66% in the TTM. Margins are deeply negative, with a gross profit margin of -16.03% and a net profit margin of -41.95%, indicating substantial losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Overall, the income statement suggests a struggling financial performance with no immediate signs of profitability.

Balance Sheet

The balance sheet shows a mixed picture. The debt-to-equity ratio has improved to 0.43 in the TTM from 2.15 in the previous year, indicating better leverage management. However, the return on equity is significantly negative at -170.04%, reflecting poor returns for shareholders. The equity ratio stands at 8.44%, suggesting a low proportion of equity financing. While debt levels are manageable, the negative equity and returns highlight financial instability.

Cash Flow

Cash flow analysis indicates ongoing cash flow challenges. The operating cash flow is negative, and the free cash flow growth rate is slightly positive at 6.68%, but this is from a negative base. The operating cash flow to net income ratio is negative, suggesting cash flow issues relative to net losses. The free cash flow to net income ratio is close to 1, indicating that free cash flow is largely in line with net losses. Overall, cash flow remains a concern with limited improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.36M	11.88M	32.20M	40.50M	30.95M	28.11M
Gross Profit	-3.56M	-2.40M	-8.70M	1.85M	1.49M	1.44M
EBITDA	-11.78M	-12.11M	-40.41M	-32.89M	-31.00M	-18.07M
Net Income	-6.80M	-15.16M	-140.78M	-59.80M	-32.61M	-19.71M
Balance Sheet
Total Assets	32.37M	21.67M	27.50M	114.65M	75.95M	51.69M
Cash, Cash Equivalents and Short-Term Investments	4.85M	4.42M	2.06M	20.40M	48.74M	22.34M
Total Debt	1.18M	8.62M	16.38M	4.65M	2.34M	786.00K
Total Liabilities	11.26M	17.66M	35.91M	18.68M	9.88M	7.58M
Stockholders Equity	21.10M	4.01M	-8.41M	95.97M	66.07M	44.11M
Cash Flow
Free Cash Flow	-14.98M	-14.51M	-60.60M	-56.14M	-23.91M	-16.14M
Operating Cash Flow	-14.87M	-14.35M	-54.99M	-51.71M	-22.84M	-15.62M
Investing Cash Flow	130.00K	-139.00K	16.82M	22.58M	-27.73M	16.47M
Financing Cash Flow	14.24M	16.85M	37.21M	30.82M	50.88M	-304.00K

22nd Century Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XXII, the sentiment is Neutral. The current price of 1.09 is above the 20-day moving average (MA) of 0.99, below the 50-day MA of 1.31, and below the 200-day MA of 12.66, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 47.79 is Neutral, neither overbought nor oversold. The STOCH value of 81.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for XXII.

22nd Century Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UVV	70 Neutral	$1.30B	11.77	7.72%	6.17%	3.01%	-7.14%
TPB	69 Neutral	$1.94B	35.73	22.54%	0.29%	6.71%	8.16%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ISPR	51 Neutral	$120.31M	―	-254.99%	―	-20.13%	-88.66%
GNLN	46 Neutral	$4.48M	―	-240.32%	―	-78.46%	83.71%
XXII	45 Neutral	$4.88M	>-0.01	-133.50%	―	-34.81%	99.30%
KAVL	31 Underperform	$5.74M	-0.60	-68.63%	―	-88.85%	68.28%

22nd Century Corporate Events

22nd Century Signs $25M Sales Agreement for Expansion

On November 4, 2025, 22nd Century Group, Inc. entered into a Sales Agreement with Needham & Company, LLC to issue and sell shares of common stock up to $25 million, intending to use the proceeds for corporate purposes including the expansion of its VLN® products. The company also reported its third quarter 2025 financial results, highlighting a significant balance sheet improvement with no outstanding debt and a $9.5 million insurance settlement. The company is expanding its market reach with VLN® products, increasing store counts, and securing new distribution agreements, positioning itself for future growth in the tobacco industry.

22nd Century Settles Insurance Litigation for $9.5M

On September 18, 2025, 22nd Century Group, Inc. settled its litigation with its insurer regarding the November 2022 fire at its Grass Valley manufacturing facility, resulting in a $9.5 million cash payment. This settlement allows the company to transition from survival capital to growth capital, positioning it to focus on profitability by 2026 and expand distribution for its branded products.

22nd Century Announces Full Debt Repayment

On September 18, 2025, 22nd Century Group, Inc. announced the full repayment of its senior secured debt, totaling $3.9 million, which was completed ahead of its maturity date. This financial move, following the closing of its Series A convertible preferred stock offering, results in a debt-free balance sheet and positions the company for growth by reducing ongoing cash needs and operating costs. The company plans to use its improved financial position to expand its inventory of very low nicotine tobacco leaf, supporting the production of over one million cartons of VLN products, and to focus on the growth of its branded products and intellectual property portfolio.