22nd Century, which holds patents on technologies to reduce nicotine levels in tobacco plants, said sales revenue for the first quarter was up USD 3.8 million (EUR 3.1 million), or 174.1 per cent, compared to the USD 2.2 million generated in the comparable quarter in 2017. The company said the increase in sales was mainly the result of additional sales generated from a manufacturing agreement for filtered cigars which began in May 2017.
An operating loss of USD 4.9 million for the three-month period was 67.3 per cent higher than the operating loss posted for the three months ended 31 March 2017. Operating expenses for the period increased by USD 2.3 million as a result of increased investment in its Modified Risk Tobacco Product application for its ‘Brand A’ Very Low Nicotine cigarettes with the US Food and Drug Administration, 22nd Century said.
The company said it had USD 59 million in cash and investments, which it said would be sufficient to meet operating expenses “for a number of years”.