22nd Century Group Inc (XXII) 2025 Q4 法說會逐字稿

Welcome to 22nd Century Group's fourth-quarter and full-year 2025 conference call and webcast. At this time, all participants have been placed in a listen-only mode.

歡迎參加 22 世紀集團 2025 年第四季及全年業績電話會議及網路直播。目前，所有參與者均處於只聽模式。

It is now my pleasure to turn the floor over to Matt Kreps, Investor Relations for 22nd Century Group. Please go ahead.

現在我很高興將發言權交給 22 世紀集團的投資者關係負責人 Matt Kreps。請繼續。

Thank you. Hello and welcome to 22nd Century's fourth-quarter and full-year 2025 results conference call. Joining me today are Larry Firestone, CEO; and Dan Otto, CFO.

謝謝。大家好，歡迎參加 22 世紀公司 2025 年第四季及全年業績電話會議。今天和我一起的有執行長 Larry Firestone 和財務長 Dan Otto。

Earlier today, we issued a press release announcing our results for the quarter and year ended December 31, 2025. The earnings release in 10-K are available in the Investors section of our website at xxiicentury.com.

今天早些時候，我們發布了一份新聞稿，公佈了截至 2025 年 12 月 31 日的季度和年度業績。您可以在我們網站 xxiicentury.com 的投資者關係部分查看 10-K 格式的收益報告。

Today's call will include prepared remarks from Larry and Dan, updating you on 22nd Century's business operations, strategy, and financial results through December 31, 2025, and subsequent events post the close of quarter end.

今天的電話會議將包括 Larry 和 Dan 的準備好的講話，向大家介紹 22nd Century 截至 2025 年 12 月 31 日的業務運營、戰略和財務業績，以及季度末之後的後續事件。

Before we begin, a few reminders for today's call. Some of the statements made today are forward-looking. Forward-looking statements are subject to risks, uncertainties, and other factors that may cause actual results to differ materially from those contemplated by these statements. Additional information regarding these factors can be found in our annual, quarterly, and other reports filed with the SEC.

在開始之前，先提醒大家注意今天的通話事項。今天發表的一些聲明具有前瞻性。前瞻性陳述受風險、不確定性及其他因素的影響，這些因素可能導致實際結果與這些陳述所預期的結果有重大差異。有關這些因素的更多信息，請參閱我們向美國證券交易委員會提交的年度報告、季度報告和其他報告。

During today's call, we also discussed non-GAAP financial measures, including adjusted EBITDA, which we define as earnings before interest, taxes, depreciation, and amortization as adjusted for certain non-cash or non-operating expenses. For more details on these measures, please refer to our earnings release issued earlier today.

在今天的電話會議中，我們還討論了非GAAP財務指標，包括調整後的EBITDA，我們將其定義為扣除利息、稅項、折舊和攤銷之前的收益，並根據某些非現金或非經營性支出進行調整。有關這些措施的更多詳情，請參閱我們今天早些時候發布的盈利報告。

And with that, I'll now turn the call over to Larry.

接下來，我將把電話交給拉里。

Thank you, Matt. Good morning, everyone, and thank you for joining 22nd Century's fourth-quarter 2025 results conference call.

謝謝你，馬特。各位早安，感謝各位參加 22nd Century 2025 年第四季業績電話會議。

2025 was truly our transition year from restructuring to fully focused on growth. As final acts of the restructuring, we closed out a host of legacy issues from the prior business model, closed unprofitable contracts and product lines, reduced our manufacturing overhead, and paid off our structured senior and subordinated remaining debt.

2025 年是我們從重組過渡到全面專注於成長的真正一年。作為重組的最後階段，我們解決了先前商業模式遺留下來的一系列問題，終止了不盈利的合約和產品線，降低了製造成本，並償還了剩餘的結構性高級和次級債務。

Then as we shifted into growth in 2025, that allowed us to launch new brands and new products, secure a substantial base of retail outlets, and begin to see initial sales of VLN products in the market under our own VLN brand and our two newest VLN partner brand products. The progress made in 2025 was an extremely heavy lift, and our team did an awesome job.

然後，隨著我們在 2025 年進入增長期，這使我們能夠推出新品牌和新產品，確保了相當可觀的零售網點基礎，並開始看到我們自己的 VLN 品牌和我們兩個最新的 VLN 合作夥伴品牌產品在市場上的初步銷售。2025 年取得的進展是一項極為艱鉅的任務，我們的團隊做得非常出色。

As a result, we have set our company up to begin an exciting growth path for 2026 and beyond. We are now in the market with our VLN combustible cigarette products, and smoking consumers are finding our products in 1,636 retail outlets in 23 states. These numbers will continue to grow, especially as we secure more retail partners throughout the US.

因此，我們已為公司在 2026 年及以後開啟令人興奮的發展道路做好了準備。我們目前已將 VLN 可燃香菸產品推向市場，吸菸消費者可以在 23 個州的 1,636 家零售店找到我們的產品。這些數字還會繼續成長，尤其是在我們在美國各地獲得更多零售合作夥伴之後。

The consumer tobacco market is changing rapidly. The big tobacco companies are aggressively pushing consumers into alternative yet highly addictive nicotine products like pouches and vapes in order to maintain their customer base. They know many of their customers want to smoke less, which is of course bad for their business model.

消費者煙草市場正在快速變化。為了維持客戶群，大型菸草公司正積極推動消費者使用其他同樣容易上癮的尼古丁產品，例如煙袋和電子煙。他們知道很多顧客都想減少吸菸量，這當然對他們的商業模式不利。

Their solution is to transition as many of their 28.8 million US cigarette customers as possible to other addictive products. This strategy prioritizes revenue and market share to the detriment of the health of the consumer and the overall cost of healthcare related to illnesses derived from smoking and nicotine.

他們的解決方案是盡可能讓其 2,880 萬美國捲菸消費者轉向其他成癮性產品。該策略優先考慮收入和市場份額，卻損害了消費者的健康以及與吸煙和尼古丁引起的疾病相關的整體醫療保健成本。

In contrast, we're the only tobacco products company focused on reducing the harms of smoking through nicotine reduction while using the form factor smokers are used to and most comfortable with a cigarette. The company's proprietary low nicotine technology is designed to serve adult smokers who want to change their smoking habits and smoke less by significantly reducing nicotine consumption.

相較之下，我們是唯一一家專注於透過減少尼古丁含量來降低吸菸危害的菸草產品公司，同時採用吸菸者習慣且最舒適的香菸外形。該公司專有的低尼古丁技術旨在透過大幅降低尼古丁攝取量，為希望改變吸菸習慣、減少吸菸量的成年吸菸者提供服務。

22nd Century is focusing on smoker health and wellness by giving smokers an opportunity to control their tobacco consumption rather than switching them to another highly addictive product like a vape or a pouch.

22nd Century 致力於改善吸菸者的健康和福祉，讓吸菸者有機會控製菸草消費，而不是讓他們轉向其他高度成癮的產品，如電子煙或煙袋。

Although the market is in flux, we are right in the middle of the directional battle for the smoker. Our VLN products are now in stores in 23 states, and consumers who enjoy smoking are choosing our VLN products and giving them a try. We've seen some stores with very low volume but building, and some stores are moving VLN products and the reorders are starting to materialize.

儘管市場瞬息萬變，但我們正處於煙熏爐市場方向性競爭的中心。我們的 VLN 產品目前已在 23 個州的商店上架，喜歡吸菸的消費者正在選擇我們的 VLN 產品並嘗試使用。我們看到一些門市銷量很低，但正在發展壯大；一些門市的 VLN 產品銷量正在成長，補貨也開始出現。

Some stores are about to put our VLN products into position in the front of the store and begin selling. Our sample size is small as we are in the first quarter of selling our VLN products. But even with the compressed timeline and the small data set, we are seeing month-over-month growth within the stores.

一些商店即將把我們的 VLN 產品擺放在商店最顯眼的位置並開始銷售。由於我們才剛開始銷售VLN產品，樣本量較小。但即便時間緊迫、數據量有限，我們仍看到門市銷售額逐月成長。

Our VLN products are backed by science, and we have the results to prove it. We have examples of smokers who have changed from their traditional high nicotine brand to one of our VLN brands in just 12 weeks have cut their smoking habit by two-thirds.

我們的VLN產品以科學為依據，我們有結果可以證明這一點。我們有例子表明，一些吸菸者從傳統的高尼古丁品牌換成我們的低尼古丁品牌後，僅 12 週就減少了三分之二的吸菸量。

The positive impact of this change for the smoker is huge, health-wise as well as financially. The total addressable market for smokers in the US is 28.8 million smokers. And as we've reported, surveys of adult smokers indicate that approximately 70% have expressed their desire to change their habit, including quitting.

這項改變對吸菸者來說具有巨大的正面影響，無論從健康方面還是經濟方面都是如此。美國吸菸者的潛在市場總量為 2,880 萬名吸菸者。正如我們所報導的那樣，對成年吸菸者的調查顯示，約有 70% 的人表示希望改變他們的習慣，包括戒菸。

Unfortunately, nicotine is what keeps them coming back at the rate they're used to. Many smokers actually enjoy their smoke as it is a comfort zone for them. They just wish they could maintain their habit at a more controlled pace. That's where we come in.

不幸的是，正是尼古丁讓他們以以往的頻率不斷復吸。許多吸菸者其實很享受吸菸的感覺，因為吸菸能帶給他們舒適感。他們只是希望能夠以更可控的速度維持這種習慣。這就是我們發揮作用的地方。

If 70% of the 28.8 million smokers are sincere, our serviceable addressable market, or SAM, is 20.2 million smokers, roughly a $58 billion dollar market. All of the smokers who have been making the choice to now try our VLN products represent a shift in the market.

如果 2,880 萬吸菸者中有 70% 是真心想戒菸的，那麼我們可服務的目標市場（SAM）就是 2,020 萬名吸菸者，市場規模約為 580 億美元。現在選擇嘗試我們 VLN 產品的吸菸者們，代表著市場的轉變。

We have our sights set on taking a meaningful share of that market where even initially, a small piece would be a substantial business for the 22nd Century. We know that none of our competitors are going to move over and let us in, so we'll have to win on every front to gain retail positions and earn a shot at the smoking consumer's mind.

我們的目標是在該市場中佔據有意義的份額，即使在初期，一小塊市場份額對於 22 世紀來說也是一項巨大的業務。我們知道，我們的競爭對手都不會讓步讓我們進入市場，所以我們必須在各方面都取得勝利，才能獲得零售地位，贏得吸菸消費者的心。

This is why we welcome other brands to join the battle and introduce a VLN concept within their own brands that they have in the market. This could range from including our low nicotine tobacco in their products, or they could license our VLN brand and use it within their brand lineup.

因此，我們歡迎其他品牌加入這場競爭，在他們自己的品牌中引入 VLN 概念，以擴大市場。這可能包括將我們的低尼古丁煙草添加到他們的產品中，或者他們可以獲得我們的 VLN 品牌授權並在他們的品牌系列中使用它。

I'll transition now to discuss topics in the regulatory arena. In December 2025, we filed our MRTP renewal application with the FDA. We're excited about this milestone as we also plan to expand our PMTA and MRTP filings with the FDA for other products. We have the 100-millimeter version of our VLN cigarette which once authorized will allow us to expand served markets for those consumers who prefer the 100-millimeter cigarette.

接下來我將轉而討論監管領域的相關議題。2025年12月，我們向FDA提交了MRTP續約申請。我們對這一里程碑感到興奮，因為我們還計劃擴大向FDA提交的PMTA和MRTP申請，以涵蓋其他產品。我們有 100 毫米版本的 VLN 香煙，一旦獲得授權，我們將能夠擴大服務市場，滿足那些喜歡 100 毫米香菸的消費者的需求。

For the broader picture, the FDA published their low nicotine proposed rule in January 2025, with a comment period extending through September 2025. This allowed the FDA to harvest comment letters from all constituents, those for and those against, and they are now in an internal review process.

從更廣泛的角度來看，FDA 於 2025 年 1 月發布了低尼古丁建議規則，意見徵詢期持續到 2025 年 9 月。這使得FDA能夠收集所有利害關係人的意見信，包括支持和反對的，目前這些意見信正在進行內部審查。

Our VLN products and science are the backbone of the proposed rule, including specific citations to 22nd Century Group and Spectrum research cigarettes which once again proves the positive impact we can make on smokers' health and wellness.

我們的 VLN 產品和科學是擬議規則的支柱，其中包括對 22nd Century Group 和 Spectrum 研究型香菸的具體引用，這再次證明了我們可以對吸菸者的健康和福祉產生積極影響。

Our attitude with respect to the proposed rule is we are the only ally the FDA has from the tobacco business in this battle. The FDA, the tobacco industry, and the politicians all know what the answer is, and we have the answer. However, the forces of politics, financial power, and taxes all cast aside the care and the cost of care and the mortality of our smoking population who are addicted. So we have to force ourselves into the ring and fight the fight to at least offer the option to smokers who have had what we call the moment.

對於這項擬議規則，我們的態度是，在這場鬥爭中，我們是FDA在菸草產業中唯一的盟友。美國食品藥物管理局（FDA）、菸草業和政治人物都知道答案，而我們也掌握著答案。然而，政治、經濟和稅收的力量卻將吸菸成癮者的照護、照護成本以及死亡率置之不理。因此，我們必須挺身而出，奮力抗爭，至少要為那些經歷過我們所說的「轉機」的吸煙者提供一個選擇。

So our strategy is to continue to expand distribution and push our way into retail in all 50 states, continue to gain consumers and share of the market, so that when the FDA has to make the final go, no-go decision on the mandate, we, 22nd Century, will have already established a full low nicotine ecosystem to address their low nicotine mandate and silence the claims that were made by opposition in their responses to the FDA.

因此，我們的策略是繼續擴大分銷管道，努力打入全美 50 個州的零售市場，繼續贏得消費者和市場份額，這樣，當 FDA 必須對這項強制性規定做出最終決定時，我們 22 世紀公司就已經建立了一個完整的低尼古丁生態系統，以應對他們的低尼古丁強制性規定，並駁斥反對者在對 FDA 的回應中提出的說法。

This would include the development of other low nicotine tobacco strains developed by our team to expand the variety, setting up and contracting with growers who can produce our low nicotine crops with no problem and no harm or degradation to their business, entering into agreements with other brands that will have adopted a VLN SKU in their branded lineup; retail positions that can display the products prominently for the consumer so they may choose how they want to pursue their habit. This would be a normal share shift as we have seen over many years in all varieties of consumer products.

這將包括開發我們團隊研發的其他低尼古丁煙草品種以擴大品種範圍；與能夠毫無問題且不會對其業務造成損害或劣化地生產我們低尼古丁作物的種植者建立和簽訂合同；與其他品牌達成協議，在其品牌產品線中採用 VLN SKU；以及在零售店中醒目地展示產品，以便消費者可以選擇他們想要如何滿足自己的習慣。正如我們多年來在各種消費品領域所看到的那樣，這是一種正常的市場份額變化。

We are building the chassis of a business that will develop new strains of low nicotine tobacco, sell low nicotine tobacco to others, and potentially license others to grow and produce low nicotine products using our genetics and technology, and potentially license our VLN brand to others, making VLN a prominent worldwide brand.

我們正在建立一個商業框架，該業務將開發低尼古丁煙草的新品種，向他人銷售低尼古丁煙草，並有可能授權他人使用我們的基因和技術種植和生產低尼古丁產品，並有可能將我們的 VLN 品牌授權給其他人，使 VLN 成為一個著名的全球品牌。

We are clearly at the center of the conflict. As the larger forces that around the industry are pushing more and more nicotine, we're pulling the opposite way. We know the harms of nicotine has on the brain, the skeletal system, and the vascular system. And while our competitors are pushing as hard as they can to keep consumers addicted and looking away from the harms of nicotine, they are also adding new consumers and are ignoring the bigger picture, which is health.

我們顯然處於這場衝突的中心。當產業周圍的大勢力不斷推動尼古丁的消費時，我們卻在做相反的事。我們深知尼古丁對大腦、骨骼系統和血管系統的危害。我們的競爭對手竭盡全力讓消費者沉迷其中，忽視尼古丁的危害，同時卻不斷吸引新客戶，並忽略了更重要的健康問題。

We are just fine having the answer and being the contrarian. One thing is clear: All the smokers who have quit in their lifetime and the 70% of the 28.8 million smokers in the US who have declared they want to make a change have all had the moment.

我們完全可以擁有答案，然後做個唱反調的人。有一點很明確：所有一生中戒菸的人，以及美國 2880 萬吸菸者中 70% 的人表示想要改變，他們都曾有過那個「決定戒菸」的時刻。

When they do, we will be there with the answer. And an answer that does not require pharma to invent a new drug or a visit to the doctor or other nicotine reduction therapies. The answer VLN products will be ready and on the shelf for the consumer to choose.

當他們需要答案時，我們會及時出現。而且，這個答案不需要藥廠發明新藥，也不需要去看醫生或其他尼古丁戒斷療法。VLN產品將準備就緒，上架供消費者選擇。

We also consider the regulatory environment outside the US, where the World Health Organization has a similar mandate as the FDA. Their doctrine is known as the Framework Convention on Tobacco Control, or FCTC. And like the FDA's mandate, 22nd Century's low nicotine cigarettes and the science behind are mentioned in the document.

我們也會考慮美國以外的監管環境，世界衛生組織在那裡擁有與美國食品藥物管理局類似的職責。他們的理論稱為《菸草控制框架公約》，簡稱 FCTC。與 FDA 的強制規定一樣，該文件中也提到了 22 世紀的低尼古丁香菸及其背後的科學原理。

Even though this organization has been around since 2016, the international tobacco market has remained challenged in impacting widespread positive change in the tobacco harm reduction. However, we believe additional action is beginning to shape to address the harms of smoking and the harms of nicotine worldwide.

儘管該組織自 2016 年成立以來，國際菸草市場在推動菸草減害方面取得廣泛的積極進展方面仍然面臨挑戰。然而，我們相信，針對吸菸和尼古丁在全球造成的危害，更多行動正在逐步形成。

Australia, for example, has just implemented a doubling of the tax on cigarettes, and every legal pack of cigarettes in Australia now retails for USD4. Australia is a government that is serious about smoking. Several other countries have taken a strong position against smoking in public areas and the workplace.

例如，澳洲剛剛將香菸稅提高了一倍，現在澳洲每包合法香菸的零售價為 4 美元。澳洲政府對吸煙問題非常重視。其他一些國家也對在公共場所和工作場所吸煙採取了強硬立場。

Our low nicotine tobacco varieties include non-GMO, so we can manufacture products that comply with many of the international country standards for consumer products, including tobacco. Our non-GMO low nicotine tobacco varieties utilize our most recent technology developed into commercial form over the last few years.

我們的低尼古丁菸草品種包括非基因改造產品，因此我們可以生產符合許多國際消費品標準（包括菸草標準）的產品。我們的非基因改造低尼古丁菸草品種採用了我們近年來開發並商業化的最新技術。

We've had an open dialogue with several international constituents both at the governmental level and the commercial level regarding our low nicotine tobacco and our VLN products. All of these discussions are in their infancy, but it is clear that we are in the middle of the battle.

我們已經與政府層面和商業層面的多個國際利益相關者就我們的低尼古丁菸草和 VLN 產品進行了公開對話。所有這些討論都還處於起步階段，但很明顯，我們正處於這場戰鬥之中。

Our attitude internationally is the same as it is domestically, which is let's get our low nicotine tobacco and VLN products in the market, recognized by the retailers and consumers as a brand they can trust with their smoking choices and build a base of business like we are in the US.

我們在國際上的態度與在國內的態度相同，那就是將我們的低尼古丁煙草和VLN產品推向市場，讓零售商和消費者認可我們是一個值得信賴的吸煙品牌，並像我們在美國一樣建立起業務基礎。

Transitioning now into the year ahead for 2026, I'm excited to report that we're finally in the building phase of our company and focused on growth. We fully understand that we're going to have to earn our place in the market one smoker at a time and we know with every pack we sell, we're changing a life.

現在進入2026年，我很高興地宣布，我們終於進入了公司的建設階段，並將專注於成長。我們完全明白，我們必須一個接一個地贏得市場，贏得每一位吸煙者的支持，我們也知道，我們賣出的每一包煙，都在改變一個人的生活。

This is a delicate transition for a smoker who's had what we call the moment. That moment has to initiate a change, and we understand that changing a habit is one thing but altering an addiction as powerful as nicotine, which is akin to heroin, is a really big deal.

對於經歷過我們所說的「戒菸時刻」的吸菸者來說，這是一個微妙的轉變。那一刻必須開啟改變，我們明白改變一個習慣是一回事，但要改變像尼古丁這樣強大的癮（它類似海洛因）卻是一件非常了不起的事情。

Earlier this week, we closed an additional round of financing to provide additional growth capital to support the plans we will be implementing throughout 2026. We now have over $10 million in cash on the balance sheet to implement our strategy.

本週早些時候，我們完成了新一輪融資，以提供額外的成長資金，以支持我們將在 2026 年實施的計畫。我們現在資產負債表上有超過1000萬美元的現金，可以實施我們的策略。

Now looking ahead in the coming months, we'll be adding important additional points of distribution in the Northeast and other states that wrap around the mid-Atlantic region. We'll also be expanding in California on the West Coast.

展望未來幾個月，我們將在東北部以及環繞大西洋中部地區的其他州增加重要的分銷點。我們也將向西海岸的加州擴張。

We will be launching our latest Pinnacle combustible product complementing the broad Pinnacle brand portfolio Pinnacle Pure. Pinnacle Pure is a tobacco and water style cigarette that we will be looking to drive into existing retail outlet footprint.

我們將推出最新的 Pinnacle 可燃產品 Pinnacle Pure，以完善 Pinnacle 廣泛的品牌組合。Pinnacle Pure 是一款菸草水型香菸，我們將努力將其推廣到現有的零售據點。

As we launched VLN under three different brands in the US, the initial phase was stocking retail locations as well as training distributors and retail associates about reduced nicotine content cigarettes. Now we will add prominent retail collateral and strengthen our marketing support to increase rate of sale.

我們在美國以三個不同的品牌推出 VLN 時，最初的階段是進貨零售店，以及培訓經銷商和零售人員有關低尼古丁含量香菸的知識。現在我們將增加醒目的零售宣傳資料，並加強行銷支持，以提高銷售率。

We have very early baseline measurements and are looking for steady growth. We will track not only the number of cartons, but the geographies that are moving our VLN products the most. A key component of our growth is that we'll be adding headcount in the coming months to support product launches and other marketing initiatives.

我們目前只有非常初步的基準測量數據，正在尋求穩定成長。我們不僅會追蹤紙箱數量，還會追蹤哪些地區的 VLN 產品銷售量最高。我們成長的關鍵組成部分是，我們將在未來幾個月增加人手，以支援產品發布和其他行銷活動。

We believe we're the good guys in this market and long term, even if a smoker desires a high nicotine alternative to a standard combustible cigarette such as a vape, an e-cigarette, a heat not burn device, a pouch, or moist snuff, we will be here in the market with a VLN answer when they have the moment and they decide they've had enough nicotine. We know this is the beginning of a very long and challenging road to success. We're up for the challenge. And as we've seen, we have consumers who are up for a change.

我們相信我們是這個市場上的好人，從長遠來看，即使吸煙者想要高尼古丁含量的替代品，例如電子煙、加熱不燃燒設備、煙袋或濕鼻煙，我們也會在這個市場上提供低尼古丁含量的解決方案，當他們覺得尼古丁攝入量足夠時，我們就能滿足他們的需求。我們知道，這只是通往成功漫長而充滿挑戰的道路的開始。我們已做好迎接挑戰的準備。而正如我們所看到的，我們的消費者也樂於接受改變。

Now I'll turn the call over to Dan to discuss the numbers.

現在我將把電話交給丹，讓他來討論這些數字。

Thank you, Larry. Good morning, everyone, and thank you for joining our discussion today.

謝謝你，拉里。各位早安，感謝大家今天參加我們的討論。

Fourth quarter and full year 2025 reflect continued progress in strengthening our balance sheet and improving our operating model as we transition the business into higher-margin, proprietary-branded products. During the year we exited several unprofitable high volume revenue streams and focused our resources on building the foundation for growth and our reduced nicotine VLN cigarette portfolio and partner VLN brands.

2025 年第四季和全年業績反映了我們在加強資產負債表和改進營運模式方面取得的持續進展，我們將業務轉型為利潤率更高的自有品牌產品。今年，我們退出了幾個不盈利的高銷量收入來源，並將資源集中用於建立成長基礎，以及我們的低尼古丁VLN菸產品組合和合作夥伴VLN品牌。

Shipments of our VLN and partner VLN products continued to build as distribution expanded and additional retail locations were authorized. In the fourth quarter of 2025, we shipped approximately 8,800 cartons of newly branded VLN and partner VLN to our customers, in many cases being swapped out or exchanged for the legacy branded VLN packages.

隨著分銷通路的擴大和更多零售點的獲準使用，我們的 VLN 和合作夥伴 VLN 產品的出貨量持續成長。2025 年第四季度，我們向客戶運送了約 8,800 箱新品牌的 VLN 和合作夥伴的 VLN，在許多情況下，這些新品牌 VLN 被替換或交換了舊品牌的 VLN 包裝。

These products remain central to our strategy as they typically generate gross profit margin in the range of 20% to 30% after marketing and promotional costs and assuming optimal labor and overhead is achieved within our factory. As I discussed at length in the third quarter, this has been a large focus of 2025.

這些產品仍然是我們策略的核心，因為在扣除行銷和促銷成本後，假設我們的工廠實現了最佳的勞動力和管理費用，這些產品通常可以產生 20% 到 30% 的毛利率。正如我在第三季詳細討論的那樣，這是 2025 年的一個重點。

We now will track rate of sale metrics in early 2026 with a keen eye for the effectiveness of pricing and promotional strategies, which has long been the tactics used to drive revenue across the heavily regulated tobacco industry in lieu of the ability to directly market the product. In addition to garnering new customers and repeat purchase, scaling in 2026 will occur primarily through expanded distribution and adoption at additional retail locations, with the majority being second half of the year editions.

我們將於2026年初密切關注銷售指標，重點在於評估定價和促銷策略的有效性。長期以來，由於無法直接銷售產品，這些策略一直是監管嚴格的菸草產業推動收入成長的常用手段。除了吸引新客戶和提高復購率外，2026年的規模擴張將主要透過擴大分銷管道和在更多零售點推廣來實現，其中大部分將在下半年推出。

We are now authorized across the majority of US states and continue working to increase store count and availability of our product. We estimate increasing current store count by more than double by the end of 2026.

我們目前已獲得美國大部分州的授權，並將繼續努力增加門市數量和產品供應量。我們預計到 2026 年底，現有門市數量將增加一倍以上。

Let me now walk through some of the specific numbers from our financial results for the fourth quarter and full year 2025. All figures discussed exclude discontinued operations unless noted.

現在讓我來詳細解讀我們2025年第四季和全年財務表現的一些具體數字。除非另有說明，所有討論的數字均不包括已終止經營的業務。

In the fourth quarter of 2025, we recorded net revenue of approximately $3.6 million, compared with $4 million in the third quarter of 2025. Total cartons shipped during the quarter were approximately 248,000 compared with 517,000 cartons in the third quarter.

2025 年第四季度，我們的淨收入約為 360 萬美元，而 2025 年第三季為 400 萬美元。本季出貨箱總數約為 248,000 箱，而第三季出貨箱總數為 517,000 箱。

The reduction in volume reflects our strategic shift away from lower margin contract manufacturing activity into higher-margin branded products that we've previously spoken of. Revenue will remain consistent in the first quarter of 2026 and then will begin growing sequentially thereafter, mirroring the timing of added points of distribution. The initial 8,800 cartons of VLN and partner VLN shipped in the fourth quarter continue to be distributed and sold to retail, and we anticipate restocking shipments to commence later in the second quarter of 2026 .

產量下降反映了我們策略上的轉變，即從利潤率較低的合約製造活動轉向利潤率較高的品牌產品，我們之前已經提到過這一點。2026 年第一季營收將維持穩定，此後將開始逐季成長，與新增分銷點的進度同步。第四季出貨的首批 8,800 箱 VLN 和合作夥伴 VLN 繼續分銷並銷售給零售商，我們預計補貨將於 2026 年第二季稍後開始。

For the full year 2025, net revenues were approximately $17.6 million compared with $24.4 million in 2024, again reflecting the same strategic repositioning of the business that I've spoken of. Gross profit for the fourth quarter improved sequentially with a gross loss of approximately $0.8 million compared with a $1.1 million gross loss in the third quarter of 2025, reflecting early benefits from our late third-quarter cost reduction initiatives and operational restructuring of our manufacturing facility, as volume scales in the high-margin branded products throughout 2026 that will drive gross margin improvement.

2025 年全年淨收入約為 1,760 萬美元，而 2024 年為 2,440 萬美元，這再次反映了我之前提到的業務策略調整。第四季毛利環比改善，毛虧損約 80 萬美元，而 2025 年第三季毛虧損為 110 萬美元。這反映了我們第三季末成本削減計畫和製造工廠營運重組的早期效益，隨著 2026 年高利潤品牌產品銷售的擴大，毛利率將有所改善。

Operating loss for the fourth quarter was $2.8 million compared with $3.2 million in the third quarter, and net loss from continuing operations for the fourth quarter was approximately $2.8 million compared with $3.8 million in the third quarter. And adjusted EBITDA for the fourth quarter was $2.4 million compared with $2.9 million in the third quarter of 2025.

第四季營業虧損為 280 萬美元，而第三季為 320 萬美元；第四季持續經營淨虧損約 280 萬美元，而第三季為 380 萬美元。第四季調整後 EBITDA 為 240 萬美元，而 2025 年第三季為 290 萬美元。

Now for the full year 2025, net loss from continuing operations was approximately $13.1 million, improved from $15.5 million in 2024, reflecting the progress made in reducing operating expenses and restructuring the business.

2025 年全年，持續經營業務的淨虧損約為 1,310 萬美元，較 2024 年的 1,550 萬美元有所改善，這反映了在降低營運費用和重組業務方面取得的進展。

Turning to the balance sheet, we ended the year with approximately $7.1 million in cash and cash equivalents, and importantly, zero long-term debt, having fully extinguished our remaining senior secured debt during 2025. We also increased our inventory position during the fourth quarter of 2025 to approximately $4.3 million, up from $2 million at the end of the third quarter, reflecting the harvest of our 2025 reduced nicotine tobacco crop in preparation for expanded VLN production.

從資產負債表來看，我們年底持有約710萬美元的現金及現金等價物，更重要的是，我們沒有任何長期債務，因為我們在2025年已全部償清剩餘的優先擔保債務。此外，我們在2025年第四季將庫存增加至約430萬美元，高於第三季末的200萬美元，這反映了我們為擴大VLN生產而收穫的2025年低尼古丁菸草作物。

Overall, we believe our strength and balance sheet, inclusive of the capital raise activity earlier this week, which added approximately $5.6 million in cash, our debt-free capital structure and streamlined cost base positions us well to execute our growth strategy as we move into 2026.

總體而言，我們相信，憑藉本週早些時候的融資活動（增加了約 560 萬美元現金）、我們無債務的資本結構和精簡的成本基礎，我們的實力和資產負債表使我們能夠很好地執行成長策略，邁向 2026 年。

In summary, 2025 was a year of transition and foundation building for the company. We strengthened the balance sheet, exited unprofitable revenue streams, restructured our manufacturing operations, continued expanding the distribution of our proprietary reduced nicotine products.

總而言之，2025 年是公司轉型和奠定基礎的一年。我們加強了資產負債表，退出了無利可圖的收入來源，重組了生產運營，並繼續擴大我們專有的低尼古丁產品的分銷。

With these steps largely behind us, our focus now turns to scaling distribution, increasing product adoption, and leveraging our improved operating model to drive sequential improvements in revenue, margin, and overall profitability as we progress through 2026.

隨著這些步驟基本上完成，我們現在的重點轉向擴大分銷規模、提高產品採用率，並利用我們改進的營運模式，在 2026 年之前推動收入、利潤率和整體獲利能力的持續提高。

I will now turn the call back over to Larry for concluding remarks.

現在我將把電話交還給拉里，請他做總結發言。

Thank you, Dan. The most important point from today's call is 2026 is really the new beginning for 22nd Century. We have built the operating foundation, the brands, the products, and the initial pathways to reach the consumer with a product that can truly change smoking behaviors and reduce health harms. We meet the adult smoker where they are: with a cigarette and give them for the first time a real option to choose a lower nicotine pathway. This has been over a quarter of a century in the making, and we have a very large market to serve with what I call the answer.

謝謝你，丹。今天電話會議最重要的一點是，2026年確實是22世紀的新開始。我們已經建立了營運基礎、品牌、產品和初步管道，以便向消費者提供真正能夠改變吸煙行為並減少健康危害的產品。我們與成年吸菸者面對面交流：他們正拿著一支香煙，我們首次為他們提供了一個真正低尼古丁攝取途徑的選擇。這項技術歷經二十五年多的發展，我們擁有一個龐大的市場，可以為他們提供我稱之為「解決方案」的產品。

I would personally like to take a minute and thank and appreciate our team for their extremely hard work transitioning our company in a very short period of time with very limited resources. This has been like moving a mountain. They have done an awesome job, and we look forward to updating you with press releases along the way and again at next quarter's earnings release time frame.

我謹藉此機會衷心感謝我們的團隊，感謝他們在資源極其有限的情況下，在極短的時間內完成了公司的轉型，他們付出了巨大的努力。這簡直就像移山一樣。他們做得非常出色，我們期待在此過程中透過新聞稿向您報告最新進展，並在下一季財報發佈時再次與您分享。

I hope you all have a great day and thank you for joining.

祝大家今天過得愉快，感謝大家的參與。

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

會議到此結束。感謝各位參加今天的報告會。您現在可以斷開連線了。