22nd Century Group Inc (NYSE: XXII) shares straddled the break-even point Thursday, following a Q2 loss of $0.04 per share on revenue of $3.9 million.
Net sales revenue represented an increase of $1,069,548, or 37.8%, over net sales revenue of $2,827,658 for the three months ended June 30, 2016. The increase in net sales revenue for the second quarter of 2017 was primarily the result of a new filtered cigar manufacturing agreement that commenced in mid-May 2017.
For the quarter, the Company reported an operating loss of $3,282,525 as compared to an operating loss of $2,830,830 for the three months ended June 30, 2016, an increase in the operating loss of $451,695, or 16%, primarily due to an increase in operating expenses of approximately $428,000 and an increase in the gross loss on product sales in the amount of approximately $24,000.
22nd Century’s proprietary Very Low Nicotine cigarettes have demonstrated that the Food and Drug Administration’s target for cigarettes with non-addictive levels of nicotine is both achievable and realistic.
The Company believes that the implementation of an FDA mandate that lowers nicotine levels in all combustible cigarettes sold in the United States will save millions of lives and billions of dollars in healthcare costs. Matthew Myers, president of anti-smoking group Campaign for Tobacco-Free Kids asserted in an August 9 Bloomberg article that the new FDA plan could lead to “the most fundamental change the tobacco industry has ever seen.”
Shares in XXII dropped 1.5 cents near Thursday’s close to $2.23.
