22nd Century Group Reports Second Quarter 2024 Financial Results
22nd Century Group (NASDAQ: XXII) reported Q2 2024 financial results, showing progress towards cash-positive operations by Q1 2025. Net revenues increased 22.8% to $7.9 million, with improved gross profit of $0.6 million. The company significantly reduced its operating loss by 53.8% to $2.0 million and net loss by 61.4% to $2.2 million. EPS improved to $(0.30) from $(1.72) in Q1 2024.
Key highlights include:
- Cigarette revenues up 8% year-over-year to $4.1 million
- Filtered cigar revenues decreased to $3.3 million
- New cigarillo distribution generated $0.6 million in revenue
- VLN® cigarette revenues were negligible, prompting rebranding efforts
The company emphasized its focus on debt reduction and balance sheet improvements to support business operations.
Il gruppo 22nd Century (NASDAQ: XXII) ha riportato i risultati finanziari del Q2 2024, evidenziando progressi verso operazioni redditizie entro il Q1 2025. I ricavi netti sono aumentati del 22,8% a 7,9 milioni di dollari, con un utile lordo migliorato di 0,6 milioni di dollari. L'azienda ha ridotto significativamente la sua perdita operativa del 53,8% a 2,0 milioni di dollari e la perdita netta del 61,4% a 2,2 milioni di dollari. Il risultato per azione è migliorato a $(0,30) rispetto a $(1,72) nel Q1 2024.
Le principali evidenze includono:
- I ricavi da sigarette sono aumentati dell'8% rispetto all'anno precedente, raggiungendo 4,1 milioni di dollari
- I ricavi da sigari filtrati sono diminuiti a 3,3 milioni di dollari
- La distribuzione del nuovo cigarillo ha generato 0,6 milioni di dollari di ricavi
- I ricavi delle sigarette VLN® sono stati trascurabili, spingendo a sforzi di rebranding
L'azienda ha sottolineato il suo impegno per la riduzione del debito e il miglioramento del bilancio per sostenere le operazioni aziendali.
El grupo 22nd Century (NASDAQ: XXII) informó los resultados financieros del Q2 2024, mostrando avances hacia operaciones rentables para el Q1 2025. Los ingresos netos aumentaron un 22.8% a 7.9 millones de dólares, con una mejora en el beneficio bruto de 0.6 millones de dólares. La compañía redujo significativamente su pérdida operativa en un 53.8% a 2.0 millones de dólares y la pérdida neta en un 61.4% a 2.2 millones de dólares. El EPS mejoró a $(0.30) desde $(1.72) en el Q1 2024.
Los puntos destacados incluyen:
- Los ingresos por cigarrillos aumentaron un 8% interanual a 4.1 millones de dólares
- Los ingresos por cigarros filtrados disminuyeron a 3.3 millones de dólares
- La nueva distribución de cigarillos generó 0.6 millones de dólares en ingresos
- Los ingresos por cigarrillos VLN® fueron insignificantes, lo que llevó a esfuerzos de rebranding
La compañía enfatizó su enfoque en la reducción de deudas y mejoras en el balance para respaldar las operaciones comerciales.
22세기 그룹 (NASDAQ: XXII)은 2024년 2분기 재무 실적을 발표하며 2025년 1분기까지 현금 수익성 운영을 향한 진전을 보였습니다. 순수익이 22.8% 증가하여 790만 달러에 달했습니다, 총 이익은 60만 달러로 개선되었습니다. 회사는 운영 손실을 53.8% 줄여 200만 달러로, 순 손실은 61.4% 줄여 220만 달러로 줄였습니다. 주당순이익(EPS)은 $(0.30)으로 개선되었고 이전 Q1 2024의 $(1.72)에서 상승했습니다.
주요 하이라이트는 다음과 같습니다:
- 담배 수익이 전년 대비 8% 증가하여 410만 달러에 달했습니다
- 필터가 장착된 시가 수익은 330만 달러로 감소했습니다
- 새로운 시가릴로 배급이 60만 달러의 수익을 창출했습니다
- VLN® 담배 수익은 미미하여 브랜드 리뉴얼을 추진하게 되었습니다
회사는 사업 운영을 지원하기 위해 부채 감소와 자산 개선에 집중하고 있음을 강조했습니다.
Le groupe 22nd Century (NASDAQ: XXII) a annoncé ses résultats financiers pour le Q2 2024, montrant des progrès vers des opérations rentables d'ici le Q1 2025. Les revenus nets ont augmenté de 22,8 % pour atteindre 7,9 millions de dollars, avec un bénéfice brut amélioré de 0,6 million de dollars. L'entreprise a considérablement réduit sa perte d'exploitation de 53,8 % à 2,0 millions de dollars et sa perte nette de 61,4 % à 2,2 millions de dollars. Le BPA s'est amélioré à $(0,30) contre $(1,72) au Q1 2024.
Les principales caractéristiques comprennent :
- Les revenus des cigarettes ont augmenté de 8 % par rapport à l'année précédente, atteignant 4,1 millions de dollars
- Les revenus des cigares filtrés ont diminué à 3,3 millions de dollars
- La nouvelle distribution de cigarillos a généré 0,6 million de dollars de revenus
- Les revenus des cigarettes VLN® étaient négligeables, ce qui a poussé à des efforts de rebranding
L'entreprise a souligné son engagement envers la réduction de la dette et l'amélioration du bilan pour soutenir les opérations commerciales.
Die 22nd Century Group (NASDAQ: XXII) berichtete über die Finanzergebnisse für das 2. Quartal 2024 und zeigte Fortschritte in Richtung bargeldpositiver Geschäftstätigkeiten bis zum 1. Quartal 2025. Der Nettoumsatz stieg um 22,8% auf 7,9 Millionen Dollar, mit einem verbesserten Bruttogewinn von 0,6 Millionen Dollar. Das Unternehmen verringerte seinen operativen Verlust um 53,8% auf 2,0 Millionen Dollar und den Nettoverlust um 61,4% auf 2,2 Millionen Dollar. Der Gewinn pro Aktie verbesserte sich auf $(0,30) im Vergleich zu $(1,72) im 1. Quartal 2024.
Wichtige Highlights sind:
- Zigarettenumsätze stiegen im Jahresvergleich um 8% auf 4,1 Millionen Dollar
- Umsätze von gefilterten Zigarren sanken auf 3,3 Millionen Dollar
- Die neue Cigarillo-Verteilung generierte 0,6 Millionen Dollar Umsatz
- Der Umsatz mit VLN®-Zigaretten war vernachlässigbar, was zu einer Umbranding-Initiative führte
Das Unternehmen betonte den Fokus auf Schuldenabbau und Verbesserung der Bilanz zur Unterstützung der Geschäftstätigkeiten.
- Net revenues increased 22.8% quarter-over-quarter to $7.9 million
- Gross profit improved to $0.6 million from a loss of $1.1 million in Q1 2024
- Operating loss reduced by 53.8% to $2.0 million
- Net loss decreased by 61.4% to $2.2 million
- EPS improved to $(0.30) from $(1.72) in Q1 2024
- Cigarette revenues increased 8% year-over-year to $4.1 million
- New cigarillo distribution generated $0.6 million in revenue
- Company reduced net debt by ~$6.3 million year-to-date
- Filtered cigar revenues decreased to $3.3 million from $3.9 million year-over-year
- VLN® cigarette revenues were negligible, down from the prior year
- Adjusted EBITDA loss of $2.6 million, though improved from Q1 2024
- Overall net revenues for the six months ended June 30, 2024, decreased by 15.1% compared to the same period in 2023
Insights
22nd Century Group's Q2 2024 results show mixed signals. Revenue increased 22.8% sequentially to
However, challenges persist. VLN® cigarette revenues were negligible, suggesting poor market traction. The company's path to cash-positive operations by Q1 2025 seems ambitious given current burn rates. While debt reduction of
Investors should monitor the success of new CMO contracts and the planned VLN® rebranding efforts closely, as these will be critical for achieving profitability.
The tobacco industry landscape is shifting and 22nd Century's results reflect these changes. The company's pivot towards higher-margin cigarette manufacturing agreements is strategic, but execution risks remain. The 8% year-over-year increase in cigarette revenues is encouraging, especially given the industry's overall decline.
The negligible VLN® sales are concerning, indicating potential issues with consumer acceptance or marketing effectiveness. The planned rebranding could be important for product viability. The expansion of Pinnacle branded products to a top-five national convenience store chain is a positive development, potentially opening new revenue streams.
Market dynamics favor reduced nicotine products, aligning with 22nd Century's offerings. However, the company must overcome significant hurdles in consumer education and adoption to capitalize on this trend.
From a legal perspective, 22nd Century's focus on contract manufacturing and reduced-nicotine products positions it well in the evolving regulatory landscape. The FDA's potential mandate for reduced-nicotine cigarettes could significantly benefit the company, given its proprietary technology.
However, the rebranding of VLN® products warrants careful scrutiny to ensure compliance with FDA marketing regulations for modified risk tobacco products. Any missteps could lead to regulatory action. The expansion into cigarillo distribution also introduces new regulatory considerations, as different tobacco products face varying legal requirements.
Investors should monitor ongoing legal developments in tobacco regulation, particularly regarding nicotine levels and modified risk claims, as these could materially impact 22nd Century's market position and growth potential.
Path to Cash Positive Operations in Q1 2025; Continued Fiscal Discipline with 2Q24 Financial Results; Reduced Net Debt by ~
Mocksville, North Carolina--(Newsfile Corp. - August 13, 2024) - 22nd Century Group, Inc. (NASDAQ: XXII) today announced results for the second quarter ended June 30, 2024, and provided an update on recent business highlights.
Second Quarter 2024 Financial Results (compared to First Quarter 2024, except as noted)
All figures reported below reflect continuing operations, excluding discontinued operations related to the sale and exit of the Company's hemp/cannabis franchise in late 2023.
Net revenues increased sequentially by
22.8% to$7.9 million , compared to$6.5 million .Gross profit was
$0.6 million , compared to$(1.1) million .Operating loss declined
53.8% to$2.0 million , compared to$4.4 million .Net loss decreased
61.4% to$2.2 million , compared to$5.5 million .Basic and diluted EPS improved to
$(0.30) , compared to $($1.72) .Adjusted EBITDA declined to a loss of
$2.6 million , from a loss of$3.5 million .
"The second quarter financial results demonstrate our ongoing progress in the rapid transformation of 22nd Century's operations, including improved revenues based on many new CMO opportunities, positive gross profit, and significantly reduced operating expenses for our Company," said Larry Firestone, Chairman and CEO. "Our revenue growth from new contract volumes we have secured will continue to ramp in the latter half of fiscal 2024 as we work to achieve cash positive operations by the first quarter of 2025. Additionally, our emphasis on debt reduction and improvements to the balance sheet have allowed us to focus our cash resources on operating the business."
Second Quarter 2024 - Discussion of Product Line Net Revenues
Cigarette net revenues, including export volume, increased to
$4.1 million or8% compared to$3.8 million in the prior year comparable period on neutral volume increases. Q2 2024 cigarette sales benefitted from strong summer seasonal demand with key customers, price increases that took effect in April 2024 and a one-time Spectrum® research cigarette order which provided a$0.9 million boost.Filtered cigars net revenues decreased to
$3.3 million , compared to$3.9 million in the prior year comparable period, reflecting lower volumes as the Company continues to transition away from low or negative margin manufacturing agreements, in favor of higher margin cigarette manufacturing agreements. Additionally, price increases for certain customers took effect in April 2024.Cigarillo distribution net revenues amounted to
$0.6 million , reflective of the expanded Pinnacle branded product offerings launched in Q2 2024 with a top-five national convenience store chain.VLN® cigarette net revenues were negligible in the second quarter, a decrease from the comparable prior year period which benefited from stocking orders with major c-stores. While the Company has secured broad distribution of its VLN® products, the sell-through has not yet materialized. The Company is making changes to rebrand and relaunch its VLN® products, which will be discussed further on the conference call noted below.
Conference Call
22nd Century will host a live webcast today at 8:00 a.m. E.T. to discuss its second quarter 2024 financial results and business highlights. The live and archived webcast will be accessible in the Events section on 22nd Century's Investor Relations website at https://ir.xxiicentury.com/events.
Summary Financial Results
(dollars in thousands, except per share data)
| Three Months Ended | |||||||||||||||
| June 30, | Change | ||||||||||||||
| 2024 | 2023 | $ | % | ||||||||||||
| Revenues, net | $ | 7,947 | $ | 8,050 | (103 | ) | (1.3 | ) | |||||||
| Gross profit (loss) | $ | 570 | $ | (961 | ) | 1,531 | (159.3 | ) | |||||||
| Operating loss | $ | (2,047 | ) | $ | (12,043 | ) | 9,996 | (83.0 | ) | ||||||
| Net loss from continuing operations | $ | (2,214 | ) | $ | (13,708 | ) | 11,494 | (83.8 | ) | ||||||
| Basic and diluted loss per common share from continuing operations | $ | (0.30 | ) | $ | (15.61 | ) | 15 | (98.1 | ) | ||||||
| Adjusted EBITDA (a) | $ | (2,589 | ) | $ | (10,251 | ) | 7,662 | 74.7 | |||||||
| Six Months Ended | |||||||||||||||
| June 30, | Change | ||||||||||||||
| 2024 | 2023 | $ | % | ||||||||||||
| Revenues, net | $ | 14,416 | $ | 16,977 | (2,561 | ) | (15.1 | ) | |||||||
| Gross profit (loss) | $ | (559 | ) | $ | (944 | ) | 385 | (40.8 | ) | ||||||
| Operating loss | $ | (6,481 | ) | $ | (22,446 | ) | 15,965 | (71.1 | ) | ||||||
| Net loss from continuing operations | $ | (7,664 | ) | $ | (24,537 | ) | 16,873 | (68.8 | ) | ||||||
| Basic and diluted loss per common share from continuing operations | $ | (1.44 | ) | $ | (28.46 | ) | 27 | (94.9 | ) | ||||||
| Adjusted EBITDA (a) | $ | (6,089 | ) | $ | (19,213 | ) | 13,124 | 68.3 | |||||||
| | |||||||||||||||
| (a) Adjusted EBITDA is a non-GAAP financial measure. Please see "Notes Regarding Non-GAAP Financial Information" for additional information regarding our use of non-GAAP financial measures. Refer to Tables A at the end of this release for reconciliations of adjusted amounts to the closest corresponding GAAP financial measures. | |||||||||||||||
Summary Product Line Results
(in thousands)
| Three Months Ended | ||||||||||||||||||
| June 30, | ||||||||||||||||||
| 2024 | 2023 | Change | ||||||||||||||||
| $ | Cartons | $ | Cartons | $ | Cartons | |||||||||||||
| Contract Manufacturing | ||||||||||||||||||
| Cigarettes | 4,107 | 169 | 3,797 | 155 | 310 | 14 | ||||||||||||
| Filtered Cigars | 3,303 | 459 | 3,931 | 612 | (628 | ) | (153 | ) | ||||||||||
| Cigarillos | 552 | 91 | - | - | 552 | 91 | ||||||||||||
| Total Contract Manufacturing | 7,962 | 719 | 7,728 | 767 | 234 | (48 | ) | |||||||||||
| VLN®* | (15 | ) | 0 | 322 | 8 | (337 | ) | (8 | ) | |||||||||
| Total Product Line Revenues | 7,947 | 719 | 8,050 | 774 | (103 | ) | (56 | ) | ||||||||||
| | ||||||||||||||||||
| *VLN® sales for the three-month period ended June 30, 2024 were negligible, offset by promotion and rebate expenses accruals. | ||||||||||||||||||
| Six Months Ended | ||||||||||||||||||
| June 30, | ||||||||||||||||||
| 2024 | 2023 | Change | ||||||||||||||||
| $ | Cartons | $ | Cartons | $ | Cartons | |||||||||||||
| Contract Manufacturing | ||||||||||||||||||
| Cigarettes | 6,867 | 260 | 8,286 | 436 | (1,419 | ) | (176 | ) | ||||||||||
| Filtered Cigars | 6,927 | 995 | 8,326 | 1,316 | (1,399 | ) | (321 | ) | ||||||||||
| Cigarillos | 552 | 91 | - | - | 552 | 91 | ||||||||||||
| Total Contract Manufacturing | 14,346 | 1,346 | 16,612 | 1,752 | (2,266 | ) | (406 | ) | ||||||||||
| VLN® | 70 | 2 | 365 | 9 | (295 | ) | (7 | ) | ||||||||||
| Total Product Line Revenues | 14,416 | 1,348 | 16,977 | 1,761 | (2,561 | ) | (413 | ) | ||||||||||
About 22nd Century Group, Inc.
22nd Century Group, Inc. (NASDAQ: XXII) is an agricultural biotechnology company focused on tobacco harm reduction by offering tobacco products with
Learn more at xxiicentury.com, on Twitter, on LinkedIn, and on YouTube.
Learn more about VLN® at tryvln.com.
Notes regarding Non-GAAP Financial Information
In addition to the Company's reported results in accordance with generally accepted accounting principles in the United States of America ("GAAP"), the Company provides EBITDA and Adjusted EBITDA.
In order to calculate EBITDA, the Company adjusts net (loss) income by adding back interest expense (income), provision (benefit) for income taxes, and depreciation and amortization expense. Adjusted EBITDA consists of EBITDA adjusted by the Company for certain non-cash and/or non-operating expenses, including adding back equity-based employee compensation expense, restructuring and restructuring-related charges such as impairment, acquisition and transaction costs, and other unusual or infrequently occurring items, if applicable, such as inventory reserves and adjustments, gains or losses on disposal of property, plant and equipment, and gains or losses on investments.
The Company believes that the presentation of EBITDA and Adjusted EBITDA are important financial measures that supplement discussion and analysis of its financial condition and results of operations and enhances an understanding of its operating performance. While management considers EBITDA and Adjusted EBITDA to be important, these financial performance measures should be considered in addition to, but not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP, such as operating (loss) income, net (loss) income and cash flows from operations. Adjusted EBITDA is susceptible to varying calculations and the Company's measurement of Adjusted EBITDA may not be comparable to those of other companies.
Net total debt is calculated as total principal amount of debt outstanding less cash and cash equivalents. In addition to the performance measures identified above, we believe that net total debt provides a meaningful measure of liquidity and a useful basis for assessing our ability to fund our activities, including the financing of scheduled debt repayments.
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements, including but not limited to our full year business outlook. Forward-looking statements typically contain terms such as "anticipate," "believe," "consider," "continue," "could," "estimate," "expect," "explore," "foresee," "goal," "guidance," "intend," "likely," "may," "plan," "potential," "predict," "preliminary," "probable," "project," "promising," "seek," "should," "will," "would," and similar expressions. Forward-looking statements include, but are not limited to, statements regarding (i) our strategic alternatives and cost reduction initiatives, (ii) our expectations regarding regulatory enforcement, including our ability to receive an exemption from new regulations, (iii) our financial and operating performance and (iv) our expectations for our business interruption insurance claim. Actual results might differ materially from those explicit or implicit in forward-looking statements. Important factors that could cause actual results to differ materially are set forth in "Risk Factors" in the Company's Annual Report on Form 10-K filed on March 28, 2024, and in the Company's Quarterly Report filed on May 15, 2024. All information provided in this release is as of the date hereof, and the Company assumes no obligation to and does not intend to update these forward-looking statements, except as required by law.
Investor Relations & Media Contact
Matt Kreps
Investor Relations
22nd Century Group
mkreps@xxiicentury.com
214-597-8200
22nd CENTURY GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(amounts in thousands, except share and per-share data)
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,279 | $ | 2,058 | ||||
| Accounts receivable, net | 2,448 | 1,671 | ||||||
| Inventories | 2,664 | 4,346 | ||||||
| Insurance recoveries | 3,768 | 3,768 | ||||||
| GVB promissory note | 500 | 2,000 | ||||||
| Prepaid expenses and other current assets | 1,767 | 1,180 | ||||||
| Current assets of discontinued operations held for sale | 1,058 | 1,254 | ||||||
| Total current assets | 13,484 | 16,277 | ||||||
| Property, plant and equipment, net | 3,093 | 3,393 | ||||||
| Operating lease right-of-use assets, net | 1,769 | 1,894 | ||||||
| Intangible assets, net | 5,728 | 5,924 | ||||||
| Other assets | 15 | 15 | ||||||
| Total assets | $ | 24,089 | $ | 27,503 | ||||
| | ||||||||
| LIABILITIES AND SHAREHOLDERS' DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Notes and loans payable - current | $ | 877 | $ | 543 | ||||
| Current portion of long-term debt | 1,500 | 5,848 | ||||||
| Operating lease obligations | 245 | 231 | ||||||
| Accounts payable | 3,893 | 4,445 | ||||||
| Accrued expenses | 884 | 1,322 | ||||||
| Accrued litigation | 3,768 | 3,768 | ||||||
| Accrued payroll | 300 | 883 | ||||||
| Accrued excise taxes and fees | 2,510 | 2,234 | ||||||
| Deferred income | 389 | 726 | ||||||
| Other current liabilities | 309 | 1,849 | ||||||
| Current liabilities of discontinued operations held for sale | 1,397 | 3,185 | ||||||
| Total current liabilities | 16,072 | 25,034 | ||||||
| Long-term liabilities: | ||||||||
| Operating lease obligations | 1,571 | 1,698 | ||||||
| Long-term debt | 6,046 | 8,058 | ||||||
| Other long-term liabilities | 1,355 | 1,123 | ||||||
| Total liabilities | 25,044 | 35,914 | ||||||
| Shareholders' equity (deficit) | ||||||||
| Preferred stock, $.00001 par value, 10,000,000 shares authorized | ||||||||
| Common stock, $.00001 par value, 250,000,000 shares authorized | ||||||||
| Capital stock issued and outstanding: | ||||||||
| 9,272,518 common shares (2,720,437 at December 31, 2023) | ||||||||
| Common stock, par value | - | - | ||||||
| Capital in excess of par value | 384,603 | 370,297 | ||||||
| Accumulated deficit | (385,558 | ) | (378,707 | ) | ||||
| Total shareholders' deficit | (955 | ) | (8,410 | ) | ||||
| Total liabilities and shareholders' deficit | $ | 24,089 | $ | 27,503 | ||||
22nd CENTURY GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
(amounts in thousands, except share and per-share data)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues, net | $ | 7,947 | $ | 8,050 | $ | 14,416 | $ | 16,977 | ||||||||
| Cost of goods sold | 3,869 | 4,682 | 8,082 | 9,407 | ||||||||||||
| Excise taxes and fees on products | 3,508 | 4,329 | 6,893 | 8,514 | ||||||||||||
| Gross (loss) profit | 570 | (961 | ) | (559 | ) | (944 | ) | |||||||||
| Operating expenses: | ||||||||||||||||
| Sales, general and administrative | 2,360 | 10,283 | 5,266 | 20,119 | ||||||||||||
| Research and development | 250 | 799 | 675 | 1,529 | ||||||||||||
| Other operating expense (income), net | 7 | - | (19 | ) | (146 | ) | ||||||||||
| Total operating expenses | 2,617 | 11,082 | 5,922 | 21,502 | ||||||||||||
| Operating loss from continuing operations | (2,047 | ) | (12,043 | ) | (6,481 | ) | (22,446 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Other income (expense), net | 339 | (613 | ) | 339 | (768 | ) | ||||||||||
| Interest income, net | 21 | 65 | 21 | 122 | ||||||||||||
| Interest expense | (501 | ) | (1,071 | ) | (1,517 | ) | (1,399 | ) | ||||||||
| Total other expense | (141 | ) | (1,619 | ) | (1,157 | ) | (2,045 | ) | ||||||||
| Loss from continuing operations before income taxes | (2,188 | ) | (13,662 | ) | (7,638 | ) | (24,491 | ) | ||||||||
| Provision for income taxes | 26 | 46 | 26 | 46 | ||||||||||||
| Net loss from continuing operations | $ | (2,214 | ) | $ | (13,708 | ) | $ | (7,664 | ) | $ | (24,537 | ) | ||||
| | ||||||||||||||||
| Discontinued operations: | ||||||||||||||||
| Income (loss) from discontinued operations before income taxes | $ | 1,102 | $ | (6,831 | ) | $ | 813 | $ | (14,184 | ) | ||||||
| Provision (benefit) for income taxes | - | - | - | - | ||||||||||||
| Net income (loss) from discontinued operations | $ | 1,102 | $ | (6,831 | ) | $ | 813 | $ | (14,184 | ) | ||||||
| Net loss | $ | (1,112 | ) | $ | (20,539 | ) | $ | (6,851 | ) | $ | (38,721 | ) | ||||
| Deemed dividends | (445 | ) | (367 | ) | (4,034 | ) | (367 | ) | ||||||||
| Net loss available to common shareholders | $ | (1,557 | ) | $ | (20,906 | ) | $ | (10,885 | ) | $ | (39,088 | ) | ||||
| | | |||||||||||||||
| Basic and diluted loss per common share from continuing operations | $ | (0.30 | ) | $ | (15.61 | ) | $ | (1.44 | ) | $ | (28.46 | ) | ||||
| Basic and diluted loss per common share from discontinued operations | $ | 0.15 | $ | (7.78 | ) | $ | 0.15 | $ | (16.45 | ) | ||||||
| Basic and diluted loss per common share from deemed dividends | $ | (0.06 | ) | $ | (0.42 | ) | $ | (0.76 | ) | $ | (0.43 | ) | ||||
| Basic and diluted loss per common share | $ | (0.21 | ) | $ | (23.81 | ) | $ | (2.05 | ) | $ | (45.34 | ) | ||||
| Weighted average common shares outstanding - basic and diluted | 7,449,706 | 878,171 | 5,307,471 | 862,177 | ||||||||||||
| Net loss | $ | (1,112 | ) | $ | (20,539 | ) | $ | (6,851 | ) | $ | (38,721 | ) | ||||
| Other comprehensive income: | ||||||||||||||||
| Unrealized gain on short-term investment securities | - | 10 | - | 71 | ||||||||||||
| Foreign currency translation | - | 42 | - | 38 | ||||||||||||
| Reclassification of realized losses to net loss | - | 28 | - | 41 | ||||||||||||
| Other comprehensive income | - | 80 | - | 150 | ||||||||||||
| Comprehensive loss | $ | (1,112 | ) | $ | (20,459 | ) | $ | (6,851 | ) | $ | (38,571 | ) | ||||
Table A - Reconciliations of Non-GAAP Measures
(dollars in thousands, except share and per-share data)
Below is a table containing information relating to the Company's Net loss, EBITDA and Adjusted EBITDA for the three and six month periods ended June 30, 2024 and 2023, including a reconciliation of these Non-GAAP measures for such periods.
| (UNAUDITED) | ||||||||||||
| Three Months Ended | ||||||||||||
| June 30, | | | $ Change | |||||||||
| 2024 | 2023 | fav / (unfav)1 | | |||||||||
| Net loss from continuing operations | $ | (2,214 | ) | $ | (13,708 | ) | $ | 11,494 | ||||
| Interest (income)/expense, net | 479 | 1,006 | (527 | ) | ||||||||
| Provision (benefit) for income taxes | 26 | 46 | (20 | ) | ||||||||
| Amortization and depreciation | 248 | 365 | (117 | ) | ||||||||
| EBITDA | $ | (1,461 | ) | $ | (12,291 | ) | $ | 10,830 | ||||
| Adjustments: | ||||||||||||
| Restructuring and impairment | (319 | ) | - | (319 | ) | |||||||
| Change in fair value of derivative liabilities | (541 | ) | - | (541 | ) | |||||||
| Change in fair value of warrant liabilities | (324 | ) | 584 | (908 | ) | |||||||
| Equity-based employee compensation expense | 56 | 1,456 | (1,400 | ) | ||||||||
| Adjusted EBITDA | $ | (2,589 | ) | $ | (10,251 | ) | $ | 7,662 | ||||
| | ||||||||||||
| Adjusted EBITDA loss per common share | $ | (0.35 | ) | $ | (11.67 | ) | $ | 11.33 | ||||
| Weighted average common shares outstanding - basic and diluted | 7,449,706 | 878,171 | ||||||||||
| (UNAUDITED) | ||||||||||||
| Six Months Ended | ||||||||||||
| June 30, | $ Change | |||||||||||
| 2024 | 2023 | fav / (unfav)1 | ||||||||||
| Net loss from continuing operations | $ | (7,664 | ) | $ | (24,537 | ) | $ | 16,873 | ||||
| Interest (income)/expense, net | 1,495 | 1,277 | 218 | |||||||||
| Provision (benefit) for income taxes | 26 | 46 | (20 | ) | ||||||||
| Amortization and depreciation | 514 | 726 | (212 | ) | ||||||||
| EBITDA | $ | (5,629 | ) | $ | (22,488 | ) | $ | 16,859 | ||||
| Adjustments: | ||||||||||||
| Restructuring and impairment | (345 | ) | - | (345 | ) | |||||||
| Inventory write-down | 431 | - | 431 | |||||||||
| Change in fair value of derivative liabilities | (459 | ) | - | (459 | ) | |||||||
| Change in fair value of warrant liabilities | (324 | ) | 723 | (1,047 | ) | |||||||
| Equity-based employee compensation expense | 237 | 2,552 | (2,315 | ) | ||||||||
| Adjusted EBITDA | $ | (6,089 | ) | $ | (19,213 | ) | $ | 13,124 | ||||
| Adjusted EBITDA loss per common share | $ | (1.15 | ) | $ | (22.28 | ) | $ | 21.14 | ||||
| Weighted average common shares outstanding - basic and diluted | 5,307,471 | 862,177 | ||||||||||
| 1Fav = Favorable variance, which increases EBITDA and Adjusted EBITDA; Unfav = unfavorable variance, which reduces EBITDA and Adjusted EBITDA | ||||||||||||
Table B: Net Total Debt Reconciliation
(dollars in thousands)
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| Total debt | $ | 7,546 | $ | 13,906 | ||||
| Add: debt discounts and deferred issuance costs included in total debt | 779 | 1,453 | ||||||
| Total principal amount of debt outstanding | 8,325 | 15,359 | ||||||
| Less: Cash and cash equivalents | 1,279 | 2,058 | ||||||
| Net total debt (Non-GAAP) | $ | 7,046 | $ | 13,301 | ||||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219740
FAQ
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