22nd Century slightly lowers first-quarter loss; no net revenue from very-low-nicotine cigarettes

22nd Century Group Inc., the struggling Mocksville-based tobacco manufacturer, continued to make progress with lowering its quarterly losses during the first quarter.

The manufacturer reported a $3.01 million loss, compared with a $3.27 million loss a year ago.

22nd Century remains focused on producing and selling cigarettes that contain 95% less nicotine than traditional cigarettes.

However, the company draws nearly all of its revenue from private-label traditional cigarettes and filtered cigars.

During the first quarter, traditional cigarette sales were at $2.85 million, down from $5.01 million a year ago. Filtered cigars were at $873 million, down from $1.1 million.

Meanwhile, the other tobacco products category was at $389,000, up from a loss of $5,000.

VLN-branded cigarettes had a $3,000 loss, compared with a $155,000 loss a year ago.

22nd Century has been in the midst of a financial restructuring since 2023, a key part being a series of reverse stock split in attempts to maintain compliance with Nasdaq's $1 minimum share-price listing requirement.

Peak employment was about 50 at its Mocksville production facility, but has been reduced as part of a series of cost-cutting moves.

22nd Century reports its branded VLN cigarettes are available in 48 states, while its private-label VLN cigarettes for the Pinnacle and Smoker Friendly chains at between 42 and 47 states.

Yet, 22nd Century continues to struggle with getting those products to resonate with smokers even as it also has expanded its presence in 7-Eleven and Circle K convenience stores and in Walgreens.

22nd Century reported having $138,000 in revenue from the sale of 4,000 very-low-nicotine cigarette cartons during fiscal 2025. The vast majority of those sales at 2,000 cartoons and $129,000 in revenue occurred in the fourth quarter.

By comparison, for fiscal 2025, there was $12.9 million in traditional cigarette revenue generated from 1.52 million cartoons, as well as $4.11 million from 549,000 cartons of filtered cigars.

A major anti-tobacco advocate's concern about 22nd Century's VLN cigarettes is smokers consuming more of them - thus increasing their risk to carcinogens from burning tobacco leaves - to gain typical nicotine levels.

Anti-smoking advocates say that if the FDA is successful in mandating very-low nicotine cigarettes, some smokers may go to a black market to buy those made outside the U.S. with current nicotine levels.

Company officials and industry analysts are well aware 22nd Century's VLN future is dependent on a potential lifeline from the Trump administration's Food and Drug Administration that appears increasingly unlikely anytime soon.

Rather, the FDA recently authorized certain flavored electronic cigarette products beyond tobacco and menthol that represent competition for the VLN-branded products.

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This story was originally published May 13, 2026 at 5:43 AM.