22nd Century Group Reports Third Quarter 2024 Financial Results
22nd Century Group (XXII) reported Q3 2024 financial results showing a decrease in net revenues to $5.9 million from $7.9 million in Q2 2024. The company reported a gross loss of $0.6 million and increased operating loss to $3.4 million. Net loss expanded to $3.6 million with EPS at $(0.27). Cigarette revenues increased to $4.1 million, while filtered cigars revenue declined to $1.7 million. The company aims to achieve EBITDA breakeven in Q1 2025 and plans to launch additional VLN® SKUs within key customer brand families to expand distribution of reduced nicotine content cigarettes.
22nd Century Group (XXII) ha riportato i risultati finanziari del terzo trimestre 2024, mostrando una diminuzione dei ricavi netti a 5,9 milioni di dollari rispetto ai 7,9 milioni del secondo trimestre 2024. L'azienda ha registrato una perdita lorda di 0,6 milioni di dollari e un aumento della perdita operativa a 3,4 milioni di dollari. La perdita netta è aumentata a 3,6 milioni di dollari con un utile per azione di $(0,27). I ricavi dalle sigarette sono aumentati a 4,1 milioni di dollari, mentre i ricavi dai sigari filtrati sono diminuiti a 1,7 milioni di dollari. L'azienda mira a raggiungere il pareggio EBITDA nel primo trimestre del 2025 e prevede di lanciare ulteriori SKU VLN® all'interno delle famiglie di marche dei clienti chiave per espandere la distribuzione di sigarette con contenuto di nicotina ridotto.
22nd Century Group (XXII) reportó los resultados financieros del tercer trimestre de 2024, mostrando una disminución en los ingresos netos a 5.9 millones de dólares desde 7.9 millones en el segundo trimestre de 2024. La empresa reportó una pérdida bruta de 0.6 millones de dólares y un aumento de la pérdida operativa a 3.4 millones de dólares. La pérdida neta se amplió a 3.6 millones de dólares con una utilidad por acción de $(0.27). Los ingresos por cigarrillos aumentaron a 4.1 millones de dólares, mientras que los ingresos por cigarros filtrados disminuyeron a 1.7 millones de dólares. La empresa tiene como objetivo alcanzar el equilibrio de EBITDA en el primer trimestre de 2025 y planea lanzar SKU adicionales de VLN® dentro de las familias de marcas de clientes clave para expandir la distribución de cigarrillos con contenido reducido de nicotina.
22세기 그룹 (XXII)는 2024년 3분기 재무 결과를 발표하며 2024년 2분기 790만 달러에서 590만 달러로 순수익이 감소했다고 보고했습니다. 회사는 60만 달러의 총 손실과 340만 달러의 운영 손실 증가를 기록했습니다. 순손실은 360만 달러로 확대되었고 주당 순손실은 $(0.27)입니다. 담배 수익은 410만 달러로 증가하였고, 필터 시가 수익은 170만 달러로 감소했습니다. 회사는 2025년 1분기에 EBITDA 손익 분기점을 달성할 계획이며, 감소된 니코틴 함유 담배의 유통을 확대하기 위해 주요 고객 브랜드 가족 내에서 추가 VLN® SKU를 출시할 예정입니다.
22nd Century Group (XXII) a annoncé les résultats financiers du troisième trimestre 2024, montrant une diminution des revenus nets à 5,9 millions de dollars contre 7,9 millions au deuxième trimestre 2024. L'entreprise a enregistré une perte brute de 0,6 million de dollars et une augmentation de la perte d'exploitation à 3,4 millions de dollars. La perte nette s'est élargie à 3,6 millions de dollars avec un bénéfice par action de $(0,27). Les revenus des cigarettes ont augmenté à 4,1 millions de dollars, tandis que les revenus des cigares filtrés ont diminué à 1,7 million de dollars. L'entreprise vise à atteindre l'équilibre EBITDA au premier trimestre de 2025 et prévoit de lancer des SKU VLN® supplémentaires au sein des familles de marques des clients clés pour élargir la distribution de cigarettes à faible teneur en nicotine.
22nd Century Group (XXII) hat die Finanzergebnisse des dritten Quartals 2024 veröffentlicht und dabei einen Rückgang der Nettoumsätze auf 5,9 Millionen Dollar im Vergleich zu 7,9 Millionen Dollar im zweiten Quartal 2024 festgestellt. Das Unternehmen meldete einen Bruttoverlust von 0,6 Millionen Dollar und einen Anstieg des operativen Verlusts auf 3,4 Millionen Dollar. Der Nettverlust erweiterte sich auf 3,6 Millionen Dollar mit einem Ergebnis pro Aktie von $(0,27). Die Umsätze aus Zigaretten stiegen auf 4,1 Millionen Dollar, während die Umsätze aus Filterzigarren auf 1,7 Millionen Dollar zurückgingen. Das Unternehmen hat das Ziel, im ersten Quartal 2025 die EBITDA-Gewinnzone zu erreichen, und plant die Einführung zusätzlicher VLN® SKUs innerhalb wichtiger Kundenmarkenfamilien, um die Verteilung von Zigaretten mit reduziertem Nikotingehalt zu erweitern.
- Net debt improved to $3.0 million from $7.0 million in previous quarter
- Cigarette revenues increased 18% to $4.1 million compared to prior year
- Operating loss improved by 59.1% compared to prior year
- Net revenues decreased to $5.9 million from $7.9 million quarter-over-quarter
- Gross profit turned negative at $(0.6) million from $0.6 million in previous quarter
- Operating loss increased to $3.4 million from $2.0 million quarter-over-quarter
- Net loss increased to $3.6 million from $2.2 million quarter-over-quarter
- Filtered cigars revenue decreased significantly to $1.7 million from $4.1 million year-over-year
- VLN® cigarette revenues were negligible in Q3
Insights
The Q3 2024 results reveal significant operational challenges, with net revenues declining to
The core business segments show mixed performance: cigarette revenues increased
While management targets EBITDA breakeven by Q1 2025, the current trajectory raises concerns. The planned strategy to launch VLN® SKUs within existing brand families could potentially accelerate market penetration, but execution risks remain high given the company's small market cap of just
Remains on Path to Cash Positive Operations in Q1 2025
Commencing Growth Strategy Leveraging Both Internal and External Brand Assets Across Multiple Categories
Mocksville, North Carolina--(Newsfile Corp. - November 12, 2024) - 22nd Century Group, Inc. (Nasdaq: XXII), a tobacco products company that is leading the fight against nicotine dependence and believes smokers should have a choice about their nicotine consumption, today announced results for the third quarter ended September 30, 2024, and provided an update on recent business highlights.
Third Quarter 2024 Financial Results (compared to Second 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 business in late 2023.
- Net revenues decreased sequentially to
$5.9 million , compared to$7.9 million . - Gross profit was
$(0.6) million , compared to$0.6 million . - Operating loss increased to
$3.4 million , compared to$2.0 million . - Net loss increased to
$3.6 million , compared to$2.2 million . - Basic and diluted EPS decreased to
$(0.27) , compared to$(0.30) . - Adjusted EBITDA loss increased to
$3.2 million , from a loss of$2.6 million . - Net debt improved to
$3.0 million , compared to$7.0 million in the preceding quarter of 2024.
"Having joined this company just under a year ago, we have transitioned from a purely financial focus to the next phase of 22nd Century Group's turnaround plans, which includes deploying our extensive asset base of manufacturing, brand, customer relationship and distribution resources to build a sustainable and self-funding growth business," said Larry Firestone, Chairman and CEO. "While the third quarter results reflect the operational adjustments that I spoke to on our last report intended to address underperforming results in the filtered cigar business, we remain focused on our goal of EBITDA breakeven results in the first quarter of 2025. We expect that the changes in our core CMO business will drive revenue growth going forward at appropriate margin levels.
"I am also excited to announce that we are now moving ahead on our plans to launch additional products, including VLN® SKUs within key customer brand families, as part of our drive to expand the distribution of reduced nicotine content cigarettes manufactured by 22nd Century. Adding VLN® within other brand families is a straightforward way to reduce our time to market, increase consumer awareness and expand the VLN® footprint. This is really the beginning for 22nd Century as the synchronicity between the CMO business and VLN® is progressing as planned and is the foundation for our growth plans for 2025 and beyond."
Third Quarter 2024 - Discussion of Product Line Net Revenues
Cigarette net revenues, including export volume, increased to
$4.1 million or18% compared to$3.5 million in the prior year comparable period. Q3 2024 cigarette carton volumes declined22% due to prior year comparable period stocking orders but benefitted from price increases that took effect in April 2024. Cigarette net revenues were stable compared to the immediately preceding quarter, which benefitted from a periodic Spectrum® research cigarette order valued at$0.9 million .Filtered cigars net revenues decreased to
$1.7 million , compared to$4.1 million in the prior year comparable period, and$3.3 million in the immediately preceding quarter, reflecting lower volumes as the Company completed last time buy orders under our terminated contract manufacturing agreements, now having transitioned away from low or negative margin filtered cigar orders. Additionally, price increases for certain customers took effect in April 2024. The Company is presently in discussions for additional volume in this category under new agreements with improved margin.Cigarillo distribution net revenues amounted to
$0.2 million , compared to$0 in the prior year quarter and$0.6 million in the preceding quarter, 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 third 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 third 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 | ||||||||||||||
| September 30, | Change | |||||||||||||
| 2024 | 2023 | $ | % | |||||||||||
| Revenues, net | $ | 5,946 | $ | 7,871 | (1,925 | ) | (24.5 | ) | ||||||
| Gross profit (loss) | $ | (588 | ) | $ | 77 | (665 | ) | (863.6 | ) | |||||
| Operating loss | $ | (3,377 | ) | $ | (8,253 | ) | 4,876 | (59.1 | ) | |||||
| Net loss from continuing operations | $ | (3,585 | ) | $ | (8,081 | ) | 4,496 | (55.6 | ) | |||||
| Basic and diluted loss per common share from continuing operations | $ | (0.27 | ) | $ | (6.70 | ) | 6 | (96.0 | ) | |||||
| Adjusted EBITDA (a) | $ | (3,178 | ) | $ | (6,528 | ) | 3,350 | 51.3 | ||||||
| Nine Months Ended | ||||||||||||||
| September 30, | Change | |||||||||||||
| 2024 | 2023 | $ | % | |||||||||||
| Revenues, net | $ | 20,361 | $ | 24,848 | (4,487 | ) | (18.1 | ) | ||||||
| Gross profit (loss) | $ | (1,147 | ) | $ | (867 | ) | (280 | ) | 32.3 | |||||
| Operating loss | $ | (9,858 | ) | $ | (30,699 | ) | 20,841 | (67.9 | ) | |||||
| Net loss from continuing operations | $ | (11,248 | ) | $ | (32,618 | ) | 21,370 | (65.5 | ) | |||||
| Basic and diluted loss per common share from continuing operations | $ | (1.35 | ) | $ | (33.35 | ) | 32 | (96.0 | ) | |||||
| Adjusted EBITDA (a) | $ | (9,247 | ) | $ | (25,740 | ) | 16,493 | 64.1 | ||||||
(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 | |||||||||||||||||||
| September 30, | |||||||||||||||||||
| 2024 | 2023 | Change | |||||||||||||||||
| $ | Cartons | $ | Cartons | $ | Cartons | ||||||||||||||
| Contract Manufacturing | |||||||||||||||||||
| Cigarettes | 4,078 | 156 | 3,463 | 200 | 615 | (44 | ) | ||||||||||||
| Filtered Cigars | 1,664 | 253 | 4,088 | 621 | (2,424 | ) | (368 | ) | |||||||||||
| Cigarillos | 204 | 30 | - | - | 204 | 30 | |||||||||||||
| Total Contract Manufacturing | 5,946 | 439 | 7,551 | 821 | (1,605 | ) | (382 | ) | |||||||||||
| VLN® | - | - | 320 | 6 | (320 | ) | (6 | ) | |||||||||||
| Total Product Line Revenues | 5,946 | 439 | 7,871 | 827 | (1,925 | ) | (388 | ) | |||||||||||
| Nine Months Ended | |||||||||||||||||||
| September 30, | |||||||||||||||||||
| 2024 | 2023 | Change | |||||||||||||||||
| $ | Cartons | $ | Cartons | $ | Cartons | ||||||||||||||
| Contract Manufacturing | |||||||||||||||||||
| Cigarettes | 10,942 | 416 | 11,735 | 640 | (793 | ) | (224 | ) | |||||||||||
| Filtered Cigars | 8,593 | 1,249 | 12,414 | 1,937 | (3,821 | ) | (688 | ) | |||||||||||
| Cigarillos | 756 | 120 | - | - | 756 | 120 | |||||||||||||
| Total Contract Manufacturing | 20,291 | 1,785 | 24,149 | 2,577 | (3,858 | ) | (792 | ) | |||||||||||
| VLN® | 70 | 1 | 699 | 14 | (629 | ) | (13 | ) | |||||||||||
| Total Product Line Revenues | 20,361 | 1,786 | 24,848 | 2,591 | (4,487 | ) | (806 | ) | |||||||||||
About 22nd Century Group, Inc.
22nd Century Group is the pioneering nicotine harm reduction company in the tobacco industry enabling smokers to take control of their nicotine consumption.
We created our flagship product, the VLN® cigarette, to give traditional cigarette smokers an authentic and familiar alternative that helps them take control of their nicotine consumption. VLN® cigarettes have
Our wholly owned subsidiaries include a leading cigarette manufacturer that produces all VLN® products and provides turnkey contract manufacturing for other tobacco brands both domestically and internationally. The 60,000 square foot facility in Mocksville, North Carolina has the capacity to produce more than 45 million cartons of combusted tobacco products annually with additional space for expansion.
Our proprietary reduced nicotine tobacco blends are made possible by comprehensive and patented technologies that regulate nicotine biosynthesis activities in the tobacco plant, resulting in full flavor and high yield with
VLN® and Helps You Smoke Less® are registered trademarks of 22nd Century Limited LLC.
Learn more at xxiicentury.com, on X (formerly Twitter), on LinkedIn, and on YouTube.
Learn more about VLN® at tryvln.com.
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 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 Reports filed on May 15, 2024 and August 13, 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.
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.
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)
| September 30, | December 31, | ||||||
| 2024 | 2023 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 5,341 | $ | 2,058 | |||
| Accounts receivable, net | 1,784 | 1,671 | |||||
| Inventories | 2,340 | 4,346 | |||||
| Insurance recoveries | 3,768 | 3,768 | |||||
| GVB promissory note | 500 | 2,000 | |||||
| Prepaid expenses and other current assets | 979 | 1,180 | |||||
| Current assets of discontinued operations held for sale | 1,051 | 1,254 | |||||
| Total current assets | 15,763 | 16,277 | |||||
| Property, plant and equipment, net | 2,970 | 3,393 | |||||
| Operating lease right-of-use assets, net | 1,705 | 1,894 | |||||
| Intangible assets, net | 5,725 | 5,924 | |||||
| Other assets | 15 | 15 | |||||
| Total assets | $ | 26,178 | $ | 27,503 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) | |||||||
| Current liabilities: | |||||||
| Notes and loans payable - current | $ | 569 | $ | 543 | |||
| Current portion of long-term debt | 1,500 | 5,848 | |||||
| Operating lease obligations | 252 | 231 | |||||
| Accounts payable | 3,098 | 4,445 | |||||
| Accrued expenses | 1,367 | 1,322 | |||||
| Accrued litigation | 3,768 | 3,768 | |||||
| Accrued payroll | 183 | 883 | |||||
| Accrued excise taxes and fees | 2,159 | 2,234 | |||||
| Deferred income | 54 | 726 | |||||
| Other current liabilities | 194 | 1,849 | |||||
| Current liabilities of discontinued operations held for sale | 1,295 | 3,185 | |||||
| Total current liabilities | 14,439 | 25,034 | |||||
| Long-term liabilities: | |||||||
| Operating lease obligations | 1,506 | 1,698 | |||||
| Long-term debt | 5,529 | 8,058 | |||||
| Other long-term liabilities | 1,232 | 1,123 | |||||
| Total liabilities | 22,706 | 35,913 | |||||
| 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: | |||||||
| 29,378,321 common shares (2,720,437 at December 31, 2023) | |||||||
| Common stock, par value | - | - | |||||
| Capital in excess of par value | 392,787 | 370,297 | |||||
| Accumulated deficit | (389,315 | ) | (378,707 | ) | |||
| Total shareholders' equity (deficit) | 3,472 | (8,410 | ) | ||||
| Total liabilities and shareholders' equity (deficit) | $ | 26,178 | $ | 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 | Nine Months Ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Revenues, net | $ | 5,946 | $ | 7,871 | $ | 20,361 | $ | 24,848 | |||||
| Cost of goods sold | 3,102 | 3,921 | 11,184 | 13,327 | |||||||||
| Excise taxes and fees on products | 3,432 | 3,873 | 10,324 | 12,388 | |||||||||
| Gross (loss) profit | (588 | ) | 77 | (1,147 | ) | (867 | ) | ||||||
| Operating expenses: | |||||||||||||
| Sales, general and administrative | 2,547 | 6,939 | 7,814 | 27,058 | |||||||||
| Research and development | 240 | 623 | 915 | 2,152 | |||||||||
| Other operating expense (income), net | 2 | 768 | (18 | ) | 622 | ||||||||
| Total operating expenses | 2,789 | 8,330 | 8,711 | 29,832 | |||||||||
| Operating loss from continuing operations | (3,377 | ) | (8,253 | ) | (9,858 | ) | (30,699 | ) | |||||
| Other income (expense): | |||||||||||||
| Other income (expense), net | 100 | 1,272 | 439 | 504 | |||||||||
| Interest income, net | 3 | 79 | 26 | 201 | |||||||||
| Interest expense | (311 | ) | (1,179 | ) | (1,828 | ) | (2,578 | ) | |||||
| Total other income (expense) | (208 | ) | 172 | (1,363 | ) | (1,873 | ) | ||||||
| Loss from continuing operations before income taxes | (3,585 | ) | (8,081 | ) | (11,221 | ) | (32,572 | ) | |||||
| Provision for income taxes | - | - | 27 | 46 | |||||||||
| Net loss from continuing operations | $ | (3,585 | ) | $ | (8,081 | ) | $ | (11,248 | ) | $ | (32,618 | ) | |
| Discontinued operations: | |||||||||||||
| Income (loss) from discontinued operations before income taxes | $ | (172 | ) | $ | (64,639 | ) | $ | 640 | $ | (78,823 | ) | ||
| Provision for income taxes | - | - | - | - | |||||||||
| Net income (loss) from discontinued operations | $ | (172 | ) | $ | (64,639 | ) | $ | 640 | $ | (78,823 | ) | ||
| Net loss | $ | (3,757 | ) | $ | (72,720 | ) | $ | (10,608 | ) | $ | (111,441 | ) | |
| Deemed dividends | (3,677 | ) | (564 | ) | (7,711 | ) | (931 | ) | |||||
| Net loss available to common shareholders | $ | (7,434 | ) | $ | (73,284 | ) | $ | (18,319 | ) | $ | (112,372 | ) | |
| Basic and diluted loss per common share from continuing operations | $ | (0.27 | ) | $ | (6.70 | ) | $ | (1.35 | ) | $ | (33.35 | ) | |
| Basic and diluted loss per common share from discontinued operations | $ | (0.01 | ) | $ | (53.58 | ) | $ | 0.08 | $ | (80.58 | ) | ||
| Basic and diluted loss per common share from deemed dividends | $ | (0.27 | ) | $ | (0.47 | ) | $ | (0.93 | ) | $ | (0.95 | ) | |
| Basic and diluted loss per common share | $ | (0.55 | ) | $ | (60.75 | ) | $ | (2.20 | ) | $ | (114.88 | ) | |
| Weighted average common shares outstanding - basic and diluted | 13,507,441 | 1,206,368 | 8,316,768 | 978,168 | |||||||||
| Net loss | $ | (3,757 | ) | $ | (72,720 | ) | $ | (10,608 | ) | $ | (111,441 | ) | |
| Other comprehensive income: | |||||||||||||
| Unrealized gain on short-term investment securities | - | - | - | 71 | |||||||||
| Foreign currency translation | - | (69 | ) | - | (31 | ) | |||||||
| Reclassification of realized losses to net loss | - | - | - | 41 | |||||||||
| Other comprehensive income | - | (69 | ) | - | 81 | ||||||||
| Comprehensive loss | $ | (3,757 | ) | $ | (72,789 | ) | $ | (10,608 | ) | $ | (111,360 | ) | |
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 nine month periods ended September 30, 2024 and 2023, including a reconciliation of these Non-GAAP measures for such periods.
| Quarter Ended | ||||||||||
| September 30, | ||||||||||
| Amounts in thousands ( | ||||||||||
| except share and per share data | ||||||||||
| (UNAUDITED) | ||||||||||
| $ Change | ||||||||||
| 2024 | 2023 | fav / (unfav)1 | ||||||||
| Net loss from continuing operations | $ | (3,585 | ) | $ | (8,081 | ) | $ | 4,496 | ||
| Interest (income)/expense, net | 308 | 1,100 | (792 | ) | ||||||
| Provision (benefit) for income taxes | - | - | - | |||||||
| Amortization and depreciation | 249 | 411 | (162 | ) | ||||||
| EBITDA | $ | (3,028 | ) | $ | (6,570 | ) | $ | 3,542 | ||
| Adjustments: | ||||||||||
| Restructuring and impairment | (23 | ) | 545 | (568 | ) | |||||
| Change in fair value of derivative liabilities | (23 | ) | - | (23 | ) | |||||
| Change in fair value of warrant liabilities | (100 | ) | (1,263 | ) | 1,163 | |||||
| Equity-based employee compensation expense | (4 | ) | 538 | (542 | ) | |||||
| Adjusted EBITDA | $ | (3,178 | ) | $ | (6,528 | ) | $ | 3,350 | ||
| Adjusted EBITDA loss per common share | $ | (0.24 | ) | $ | (5.41 | ) | $ | 5.18 | ||
| Weighted average common shares outstanding - basic and diluted | 13,507,441 | 1,206,368 | ||||||||
| Year Ended | ||||||||||
| September 30, | ||||||||||
| Amounts in thousands ( | ||||||||||
| except share and per share data | ||||||||||
| (UNAUDITED) | ||||||||||
| $ Change | ||||||||||
| 2024 | 2023 | fav / (unfav)1 | ||||||||
| Net loss from continuing operations | $ | (11,248 | ) | $ | (32,618 | ) | $ | 21,370 | ||
| Interest (income)/expense, net | 1,802 | 2,377 | (575 | ) | ||||||
| Provision (benefit) for income taxes | 27 | 46 | (19 | ) | ||||||
| Amortization and depreciation | 762 | 1,137 | (375 | ) | ||||||
| EBITDA | $ | (8,657 | ) | $ | (29,058 | ) | $ | 20,401 | ||
| Adjustments: | ||||||||||
| Restructuring and impairment | (348 | ) | 545 | (893 | ) | |||||
| Inventory write-down | 431 | - | 431 | |||||||
| Change in fair value of derivative liabilities | (482 | ) | - | (482 | ) | |||||
| Change in fair value of warrant liabilities | (424 | ) | (540 | ) | 116 | |||||
| Equity-based employee compensation expense | 233 | 3,091 | (2,858 | ) | ||||||
| Adjusted EBITDA | $ | (9,247 | ) | $ | (25,740 | ) | $ | 16,493 | ||
| Adjusted EBITDA loss per common share | $ | (0.00 | ) | $ | (0.03 | ) | $ | 0.03 | ||
| Weighted average common shares outstanding - basic and diluted | 8,316,768 | 978,168 | ||||||||
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)
| September 30, | December 31, | ||||||
| 2024 | 2023 | ||||||
| Total debt | $ | 7,029 | $ | 13,906 | |||
| Add: debt discounts and deferred issuance costs included in total debt | 1,292 | 1,453 | |||||
| Total principal amount of debt outstanding | 8,321 | 15,359 | |||||
| Less: Cash and cash equivalents | 5,341 | 2,058 | |||||
| Net total debt (Non-GAAP) | $ | 2,980 | $ | 13,301 | |||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/229484
FAQ
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