22nd Century (XXII) AI Stock Analysis

• Market Cap: $4.71M
• Dividend Yield: N/A
• Average Volume (3M): 300.48K
• 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: 64
• Industry: Tobacco
• EPS (TTM): -1.89
• Shares Outstanding: 7,605,807
• 10 Day Avg. Volume: 163,846
• 30 Day Avg. Volume: 300,479
• PEG Ratio: -8.40
• Price to Book (P/B): 249.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -426.83
• Enterprise Value/Market Cap: 5.08K
• Enterprise Value/Revenue: 236.70
• Enterprise Value/Gross Profit: -12.09K
• Enterprise Value/Ebitda: -176.17
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: $0.50 ▲(13.64%Upside)

The overall stock score is heavily influenced by weak financial performance and poor technical indicators, both contributing to a significantly bearish outlook. Valuation metrics further reflect financial instability. While earnings call highlights some operational improvements, these are overshadowed by persistent financial challenges.

22nd Century Business Overview & Revenue Model

Company Description

22nd Century Group, Inc., an agricultural biotechnology company, focuses on tobacco harm reduction, reduced nicotine tobacco, and enhancing health and wellness through plant science for the life science and consumer products industries. It develops very low nicotine content tobacco and cigarette products under the VLN King and VLN Menthol King names; and SPECTRUM research cigarettes for use in independent clinical studies. The company has collaboration with Keygene N.V. to develop hemp/cannabis plants for exceptional cannabinoid profiles and other superior agronomic traits for medical, therapeutic, and agricultural uses, as well as other applications. 22nd Century Group, Inc. was founded in 1998 and is headquartered in Buffalo, New York.

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 faces severe financial challenges with declining revenue and persistent losses impacting profitability and cash flow. The balance sheet shows high leverage and limited equity, indicating financial instability. Despite efforts to manage debt, the overall financial health is weak, necessitating a strategic turnaround.

Income Statement

The company's income statement shows a deteriorating trend in revenue, with a sharp decline from $62.1 million in 2022 to $21.69 million TTM. Gross profit margin is negative due to consistent gross losses, indicating inefficiencies in core operations. Net profit margin is also negative, reflecting ongoing losses and challenges in achieving profitability. While revenue growth was negative, there are no signs of recovery in EBIT and EBITDA margins, which remain deeply negative.

Balance Sheet

The balance sheet highlights a risky financial structure with a debt-to-equity ratio worsening over time, reaching 1.54 TTM. The company has a low equity ratio, reducing financial stability. Return on equity remains negative, reflecting sustained net losses. While liquidity appears constrained, the company has managed to reduce debt in recent periods, which is a positive aspect.

Cash Flow

Cash flows demonstrate consistent negative operating cash flow and free cash flow, indicating cash burn. The operating cash flow to net income ratio is challenging, reflecting ongoing operational inefficiencies. Free cash flow growth remains negative, suggesting difficulties in generating cash. Financing activities have been a source of liquidity, but reliance on financing could pose a risk.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
21.69M	11.88M	32.20M	62.11M	30.95M	28.11M
	Gross Profit
-1.98M	-2.40M	-8.70M	1.17M	2.07M	1.44M
	EBIT
-12.09M	-13.95M	-44.93M	-57.11M	-28.33M	-19.01M
	EBITDA
-10.58M	-12.11M	-40.41M	-32.89M	-31.00M	-18.07M
	Net Income Common Stockholders
-13.75M	-15.16M	-140.78M	-59.80M	-32.61M	-19.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.13M	4.42M	2.06M	21.21M	48.74M	22.34M
	Total Assets
21.46M	21.67M	27.50M	114.65M	75.95M	51.69M
	Total Debt
5.56M	8.62M	16.38M	6.73M	2.34M	786.00K
	Net Debt
4.43M	4.20M	14.32M	3.71M	1.00M	-243.00K
	Total Liabilities
17.83M	17.66M	35.91M	18.68M	9.88M	7.58M
	Stockholders Equity
3.63M	4.01M	-8.41M	95.97M	66.07M	44.11M
Cash Flow		Free Cash Flow
-15.22M	-14.51M	-60.60M	-56.14M	-23.91M	-16.14M
	Operating Cash Flow
-15.07M	-14.35M	-54.99M	-51.71M	-22.84M	-15.62M
	Investing Cash Flow
-213.00K	-139.00K	16.82M	22.58M	-27.73M	16.47M
	Financing Cash Flow
14.89M	16.85M	37.21M	30.82M	50.88M	-304.00K

22nd Century Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 0.44 is below the 20-day moving average (MA) of 0.73, below the 50-day MA of 0.88, and below the 200-day MA of 9.59, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 18.12 is Positive, neither overbought nor oversold. The STOCH value of 7.11 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	$1.48B	15.86	6.56%	5.48%	7.23%	-20.91%
TPB	68 Neutral	$1.35B	33.14	27.53%	0.40%	3.17%	-2.23%
Sector *	65 Neutral	$8.73B	15.10	4.69%	4.08%	3.64%	-2.90%
ISPR	50 Neutral	$141.15M	―	-110.47%	―	-1.69%	-106.13%
GNLN	40 Underperform	$12.66M	―	-113.32%	―	-78.81%	92.54%
XXII	39 Underperform	$4.71M	―	-385.90%	―	-56.65%	99.11%
KAVL	31 Underperform	$5.94M	―	-88.92%	―	-71.85%	59.22%

22nd Century Corporate Events

22nd Century Announces Reverse Stock Split Plan

On June 16, 2025, 22nd Century Group, Inc. filed a Certificate of Change in Nevada to authorize a 1-for-23 reverse stock split of its common stock. This move was aimed at restoring compliance with NASDAQ’s listing standards. The reverse stock split will take effect on June 20, 2025, and the company’s shares will trade under a new CUSIP number while retaining the same NASDAQ symbol ‘XXII’. The split will reduce the number of authorized and outstanding shares proportionally, with no fractional shares being issued. Stockholders’ percentage ownership and voting power remain largely unchanged, and all options and warrants will be adjusted accordingly.

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.