22nd Century (XXII) AI Stock Analysis

• Market Cap: $5.64M
• Dividend Yield: N/A
• Average Volume (3M): 500.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.12
• Revenue Growth: -56.65%
• EPS Growth: 99.11%
• Country: US
• Employees: 56
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Tobacco
• EPS (TTM): -1.89
• Shares Outstanding: 7,605,807
• 10 Day Avg. Volume: 287,055
• 30 Day Avg. Volume: 500,104
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.17
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: -2.67
• Enterprise Value/Ebitda: -0.03
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: $0.50 ▼(-32.43%Downside)

22nd Century's overall score is primarily impacted by its poor financial performance, characterized by declining revenue and high leverage. Technical indicators suggest a bearish trend, while valuation metrics are unfavorable. Despite these challenges, the earnings call provided some positive insights into revenue growth and operational improvements, slightly mitigating the overall score.

22nd Century Business Overview & Revenue Model

Company Description

22nd Century Group, Inc. (XXII) is a biotechnology company focused on developing and commercializing reduced nicotine tobacco and hemp/cannabis plant products. The company operates in the sectors of plant biotechnology and consumer products, with core offerings that include proprietary tobacco plants engineered for reduced nicotine content, as well as hemp and cannabis plants with optimized cannabinoid profiles. Their mission is to reduce the harm associated with smoking and to advance the science of cannabinoids.

How the Company Makes Money

22nd Century Group makes money primarily through the sale of its proprietary reduced nicotine content tobacco products, which are designed to address regulatory demands for lower nicotine levels in cigarettes. The company generates revenue from its partnerships with tobacco companies, providing them with reduced nicotine tobacco leaf and licensing its technology. Additionally, 22nd Century is involved in the hemp/cannabis sector, where it earns revenue from the sale of hemp-derived CBD products and through partnerships aimed at exploiting their proprietary plant genetics for cannabinoid production. The company's revenue model is also supported by its ongoing R&D efforts and patent portfolio, which provide opportunities for licensing and joint ventures.

22nd Century Financial Statement Overview

Summary

22nd Century is facing major financial difficulties, with declining revenues, persistent losses, and high leverage. The company struggles with profitability and liquidity, relying heavily on external financing. These issues pose substantial risks to financial health and sustainability.

Income Statement

The company has seen declining revenues over recent years, with a significant drop from $62.1M in 2022 to $24.4M in 2024. Gross profit margin is negative, indicating costs exceed revenues. Net profit margin is also negative due to consistent losses, including a net income of -$15.2M in 2024. These factors reflect poor performance and profitability concerns.

Balance Sheet

The debt-to-equity ratio is unfavorable, reflecting high leverage with total debt of $8.6M compared to equity of $4.0M in 2024. The equity ratio is low, indicating limited shareholder equity relative to assets. Return on equity is negative, highlighting losses. Despite some asset retention, overall financial stability is weak.

Cash Flow

Operating cash flow remains negative at -$14.3M in 2024, showing cash outflows from operations. The free cash flow is similarly negative, indicating financial struggles. High financing cash flow suggests reliance on external financing, while negative free cash flow growth shows no improvement in liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.88M	32.20M	62.11M	30.95M	28.11M
	Gross Profit
-2.40M	-8.70M	1.17M	2.07M	1.44M
	EBIT
-13.95M	-44.93M	-57.11M	-28.33M	-19.01M
	EBITDA
-12.11M	-40.41M	-32.89M	-31.00M	-18.07M
	Net Income Common Stockholders
-15.16M	-140.78M	-59.80M	-32.61M	-19.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.42M	2.06M	21.21M	48.74M	22.34M
	Total Assets
21.67M	27.50M	114.65M	75.95M	51.69M
	Total Debt
8.62M	16.38M	6.73M	2.34M	786.00K
	Net Debt
4.20M	14.32M	3.71M	1.00M	-243.00K
	Total Liabilities
17.66M	35.91M	18.68M	9.88M	7.58M
	Stockholders Equity
4.01M	-8.41M	95.97M	66.07M	44.11M
Cash Flow		Free Cash Flow
-14.51M	-60.60M	-56.14M	-23.91M	-16.14M
	Operating Cash Flow
-14.35M	-54.99M	-51.71M	-22.84M	-15.62M
	Investing Cash Flow
-139.00K	16.82M	22.58M	-27.73M	16.47M
	Financing Cash Flow
16.85M	37.21M	30.82M	50.88M	-304.00K

22nd Century Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XXII, the sentiment is Negative. The current price of 0.74 is below the 20-day moving average (MA) of 0.91, below the 50-day MA of 0.98, and below the 200-day MA of 11.75, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 32.06 is Neutral, neither overbought nor oversold. The STOCH value of 14.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XXII.

22nd Century Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UVV	68 Neutral	$1.50B	16.02	6.56%	5.35%	7.23%	-20.91%
TPB	68 Neutral	$1.36B	33.36	27.53%	0.37%	3.17%	-2.23%
Sector *	65 Neutral	$8.89B	15.01	4.75%	203.76%	3.54%	-2.49%
ISPR	51 Neutral	$152.58M	―	-110.47%	―	-1.69%	-106.13%
XXII	43 Neutral	$5.64M	―	-385.90%	―	-56.65%	99.11%
GNLN	40 Underperform	$6.74M	―	-113.32%	―	-78.81%	92.54%
KAVL	31 Underperform	$6.59M	―	-70.92%	―	-71.85%	59.22%

22nd Century Corporate Events

22nd Century Modifies Securities Purchase Agreement

On May 22, 2025, 22nd Century Group, Inc. announced a modification to its Securities Purchase Agreement and debentures with JGB Partners and related entities, allowing for a potential reset of the Conversion Price, contingent upon stockholder approval. This move, aimed at financial restructuring, involves resetting the Conversion Price to the average of the daily VWAPs of the preceding five Nasdaq trading days, not exceeding the current $6.04, with $3.8M in Debentures outstanding. Additionally, Anthony Johnson, a Director of the Company, resigned effective July 15, 2025, with his departure unrelated to any conflicts with the company.

22nd Century Settles Shareholder Derivative Actions

On April 17, 2025, 22nd Century Group, Inc. announced a settlement agreement to resolve shareholder derivative actions related to allegations of a paid stock promotion scheme and misleading public statements. The settlement, pending court approval, includes a payment of $768,333 to plaintiffs’ attorneys and the implementation of corporate governance practices for five years. The settlement does not admit liability, and defendants deny any wrongdoing. This resolution aims to avoid further litigation costs and provides benefits to the company and its shareholders.