22nd Century Group Inc (XXII) 2026 Q1 法說會逐字稿

Welcome to the 22nd Century Group's first-quarter 2026 conference call and webcast. (Operator Instructions)

歡迎收聽第22世紀集團（22nd Century Group）2026年第一季電話法說會與網路直播。（接線員指示）

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

現在我很榮幸將會議交給第22世紀集團投資人關係部的 Matt Kreps。請開始。

Thank you. Hello, and welcome to 22nd Century's first-quarter 2026 results conference call. Joining me today are Larry Firestone, CEO; and Dan Otto, CFO. Earlier today, we issued a press release announcing our results for the quarter ended March 31, 2026. The results released and 10-Q will be available in the Investors section of our website at xxiicentury.com.

謝謝。各位好，歡迎參加第22世紀集團2026年第一季財報電話會議。今天與我一同出席的有執行長 Larry Firestone，以及財務長 Dan Otto。稍早我們已發布新聞稿，公布截至2026年3月31日止季度的營運結果。已發布的結果與10-Q將可於我們網站 xxiicentury.com 的「投資人」專區查閱。

Today's call will include prepared remarks from Larry and Dan, updating you on 22nd Century's business, operations, strategy, and financial results through March 31, 2026, and subsequent events post the close of quarter end.

今天的電話會議將包含 Larry 與 Dan 的事先準備發言，向各位更新第22世紀集團截至2026年3月31日的業務、營運、策略與財務結果，以及季末結束後發生的後續事件。

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，先提醒各位幾點。今天所做的部分陳述屬於前瞻性陳述。前瞻性陳述受到風險、不確定性及其他因素影響，可能導致實際結果與這些陳述所預期者有重大差異。關於這些因素的更多資訊，請參閱我們向美國證券交易委員會（SEC）提交的年度、季度及其他報告。

During today's call, we may also discuss 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 results release issued earlier today.

在今天的電話會議中，我們也可能討論非GAAP財務衡量指標，包括調整後EBITDA；我們將其定義為利息、稅項、折舊與攤銷前盈餘，並就若干非現金或非營運費用進行調整。關於這些指標的更多細節，請參閱我們今日稍早發布的業績新聞稿。

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

那麼，接下來我將把電話會議交給 Larry。

Thank you, Matt. Good morning, everyone, and thank you for joining 22nd Century's first-quarter 2026 results conference call. As we signaled in our year-end 2025 earnings call, which focused on the relaunch and initial shipments of VLN cigarettes, we expected Q1 2026 to yield modest sequential top-line growth and similar operating results to Q4.

謝謝你，Matt。各位早安，感謝各位參加第22世紀集團2026年第一季財報電話會議。如同我們在2025年年終財報電話會議中所提到的，當時重點在於VLN香菸的重新上市與初期出貨，我們預期2026年第一季將帶來溫和的季比營收成長，且營運表現與第四季相近。

We anticipated additional shipments of our VLN products to be minimal while the initial stocking orders were worked through, which allowed time for in-store placement, setup, retailer education and awareness, among other activities. As I will outline below, we will see further traction now in 2026. As a broad overview, looking at 2026, the shift for our company is now 100% focused on execution and growth. Not only on growth in our retail outlets and points of distribution within those outlets, but through targeted investments in marketing, merchandising, and developing the base of adult smokers who we believe will and those who have already begun to smoke VLN cigarettes.

我們預期在初期鋪貨訂單消化期間，VLN產品的追加出貨將相對有限，這也讓通路有時間進行店內陳列、上架設定、零售商教育與提升認知等活動。如下我將說明的，我們在2026年將看到更多進展。整體而言，展望2026年，我們公司的轉變已100%聚焦於執行與成長。不僅是零售據點數量的成長，以及在這些據點內的鋪貨與配銷點位的成長，也包括透過對行銷、陳列（merchandising）的精準投資，並建立我們相信將會、以及已開始吸食VLN香菸的成年吸菸者基礎。

We anticipate market expansion to be very much a grassroots effort for VLN products as the headliner of the tobacco harm reduction movement. We know Big Tobacco, also referred to as Big Nicotine, is instead putting all their financial and marketing muscle into transitioning combustible cigarette users into nicotine pouches and other highly addictive nicotine solutions.

我們預期VLN產品的市場擴張將在很大程度上以草根方式推進，作為菸草減害運動的主打產品。我們知道大型菸草公司（亦稱「大型尼古丁」）反而把其財務與行銷火力全數投入，將可燃式香菸使用者轉向尼古丁口含袋及其他高度成癮的尼古丁解決方案。

We, on the other hand, are the contrarian and we accept the challenge to join the global efforts of the many countries around the world and regulatory bodies, such as the US FDA and the World Health Organization, who have been attempting to curb smoking and the health harms of smoking and nicotine for many years.

而我們則採取相反路線，並接受挑戰，加入全球許多國家與監管機構（例如美國FDA與世界衛生組織）多年來試圖抑制吸菸，以及降低吸菸與尼古丁對健康危害的全球努力。

At the core of this problem is nicotine addiction. Initially, in 2026, focused mainly on the US, we are looking for those adult smokers who are looking to change their lifestyle for the better. Life without nicotine addiction, that's the goal. Solving this problem for the adult smoking consumers is and has been the core of 22nd Century's strategy for 28 years.

此問題的核心在於尼古丁成癮。2026年初期，我們主要聚焦美國市場，尋找那些希望以更健康方式改變生活型態的成年吸菸者。沒有尼古丁成癮的生活，這就是目標。為成年吸菸消費者解決這個問題，一直是、也始終是第22世紀集團28年來策略的核心。

We fully understand that other companies are trying to develop other methods to help adult smokers alter their smoking habits in what they claim is a positive way, like heat not burn and vaping. But with nicotine still at the core, they are not helping.

我們完全理解，其他公司正嘗試以他們宣稱的正向方式，開發其他方法來協助成年吸菸者改變吸菸習慣，例如加熱不燃燒與電子煙。但只要尼古丁仍是核心，他們就無法提供真正的幫助。

Then there are additional companies trying to derive alternative solutions in the form of cigarettes, such as hemp derived answers and even tea leaves. And the fact is our VLN is the only FDA authorized cigarette that is made with authentic tobacco to satisfy the adult smoker's true smoking experience. We believe that for many smokers, they like to smoke as they enjoy the ritual and the experience. They just don't want to be beholden to an addiction where they have no choice.

此外，還有一些公司嘗試以香菸形式提出替代方案，例如以大麻（hemp）衍生物，甚至以茶葉作為解方。但事實是，我們的VLN是唯一獲FDA授權、以真正菸草製成的香菸，能滿足成年吸菸者真實的吸菸體驗。我們相信，對許多吸菸者而言，他們喜歡吸菸是因為享受其儀式感與體驗；他們只是不想受制於一種讓他們別無選擇的成癮。

We have heard from some of our new VLN smoking consumers that they're enjoying this VLN smoking experience and have reported the ability to change their smoking habit to a more casual or social activity versus a need driven by nicotine. Along these lines, annual spending on their smoking habit always comes up in the conversation.

我們也從一些新的VLN消費者那裡聽到，他們很享受VLN的吸菸體驗，並回報自己能將吸菸習慣轉變為較隨性或社交性的活動，而非由尼古丁驅動的需求。與此同時，談話中也常會提到他們每年在吸菸習慣上的支出。

With Big Tobacco raising their perk carton prices every quarter, this price gouging has for years been putting pressure on the consumer's disposable income similar to the increases in fuel, groceries, et cetera. A pack-a-day smoker smoking a premium brand will spend almost $5,000 per year on their smoking habit.

隨著大型菸草公司每季調漲其高價（premium）紙菸的整條（carton）價格，這種哄抬價格多年來一直在擠壓消費者的可支配所得，情況類似燃油、雜貨等價格上漲。一位每天一包、吸食高價品牌的吸菸者，每年在吸菸上的花費幾乎達5,000美元。

Our VLN cigarettes, once adopted, give the consumer the advantage to manage their smoking habit and their personal spending on this commodity. We are here to help the smoking public shift the advantage to the consumer with our VLN cigarettes. The fact still remains; we have a large market of smoking consumers who have weighed in and want to change, but nicotine keeps the escape hatch locked. We believe that changing the dependence on nicotine is the key.

我們的VLN香菸一旦被採用，能讓消費者在管理其吸菸習慣與在此商品上的個人支出方面取得優勢。我們在此是要透過VLN香菸，協助吸菸大眾把優勢轉回消費者端。事實仍然是：有龐大的吸菸消費者市場已表態想改變，但尼古丁把「逃生門」鎖住了。我們相信，改變對尼古丁的依賴是關鍵。

Now on to the market and on to our consumer adoption. Make no mistake, our VLN cigarettes are a very disruptive product. In an industry that is desperately trying to keep people smoking, it is a product designed to help them smoke less.

接下來談市場與消費者採用。請不要誤會，我們的VLN香菸是一項極具顛覆性的產品。在一個迫切想讓人們持續吸菸的產業中，這是一款旨在幫助他們少抽的產品。

On the sales side, during the early phase of our VLN product rollout, we've secured distribution in the number three purveyor of tobacco products in the US with our Pinnacle-branded products. In fact, for this retailer, on a sales per retail outlet basis, they ranked number one. This is an important early accomplishment for the launch of our VLN products as we now focus in 2026 on using this as a stepping stone to garner additional retail penetration while the product rollout is occurring in planned phases.

在銷售方面，在VLN產品上市推廣的早期階段，我們已透過Pinnacle品牌產品，取得美國排名第三的菸草產品零售商之配銷。事實上，就每家零售據點的銷售表現而言，在該零售商體系內我們排名第一。這是VLN產品上市初期的重要里程碑；在產品分階段推進鋪貨的同時，我們於2026年將以此作為踏板，爭取更深的零售滲透率。

We are still in our infancy. But as we mature with retailers, we anticipate a regular cadence where we can focus more on consumer adoption. In their stores, from the get-go, we have seen sales activity from consumers. Some stores are moving Pinnacle VLN product quite nicely. Others are on a slower start, but nevertheless still selling.

我們仍處於起步階段。但隨著我們與零售商合作日益成熟，我們預期將形成規律的節奏，使我們能更專注於消費者採用。從一開始，在他們的門市中我們就看到消費者的銷售動能。有些門市的Pinnacle VLN產品銷售表現相當不錯；其他門市起步較慢，但仍持續有銷售。

The initial launch was designed with limited marketing to establish a baseline, and now we have begun promoting Pinnacle VLN with cross-promotions with other products as well as digital promotions with their fuel rewards program. We are anticipating meaningful lift from this activity. Bottom line, consumers are now finding and buying our Pinnacle VLN.

初期上市在行銷上採取有限投入，以建立基準；而現在我們已開始透過與其他產品的交叉促銷，以及結合其加油回饋（fuel rewards）計畫的數位推廣來宣傳Pinnacle VLN。我們預期這些活動將帶來顯著的拉升效果。總結來說，消費者現在正在找到並購買我們的Pinnacle VLN。

We have also secured distribution of 22nd Century VLN with the number two purveyor of cigarettes in the US in a limited market in Illinois. The results are similar as we have some stores selling consistent volume, while others are just starting to see movement in the stores.

我們也已在伊利諾伊州的有限市場，與美國第二大香菸經銷商確保了 22nd Century VLN 的鋪貨。結果相近：我們有些門市的銷量穩定一致，而其他門市則才剛開始看到店內動銷。

As we look forward to the rest of Q2 and Q3, we will be adding distribution in New York, New Jersey and Southern California for Pinnacle VLN and other Pinnacle branded products. This will cover approximately 200 outlets. Then in Q3, we'll be adding distribution to the Southeast for Pinnacle VLN for a new retailer. We expect to see initial shipments in late Q3 and early Q4.

展望第二季剩餘時間以及第三季，我們將在紐約、新澤西與南加州，為 Pinnacle VLN 及其他 Pinnacle 品牌產品新增鋪貨，涵蓋約 200 個銷售據點。接著在第三季，我們將為一家新零售商把 Pinnacle VLN 的鋪貨擴展到美國東南部。我們預期在第三季末與第四季初看到首批出貨。

This should get us close to our target for 5,000 retail outlets by the end of 2026 and following the rate of sale patterns that we've seen in the early stage of the VLN rollout, we believe we will see measurable growth from all the markets we are in. But more importantly, with every pack or carton sold, we are helping someone change their life for the better.

這將使我們接近在 2026 年底達成 5,000 家零售據點的目標；並且依據我們在 VLN 初期鋪貨階段所觀察到的銷售速度模式，我們相信我們在所有進入的市場都將看到可衡量的成長。但更重要的是，每賣出一包或一條，我們都在幫助某個人把人生往更好的方向改變。

On the marketing side, with our restructured balance sheet and our retail distribution expanding, we are now at the stage where we're investing in consumer marketing as the highest return on our resources. To that end, we're hiring a new Vice President of Marketing to build out our consumer marketing capability and lead our efforts to drive awareness and adoption of VLN products among adult smokers. Consumer adoption is the unlock from here. And we will build the toolkit to engage customer awareness.

在行銷方面，隨著我們完成資產負債表重整且零售通路持續擴張，我們現在已進入將消費者行銷視為資源最高報酬投入的階段。為此，我們正在聘請一位新的行銷副總裁，以建構我們的消費者行銷能力，並領導我們提升成年吸菸者對 VLN 產品的認知與採用。消費者採用是接下來的關鍵解鎖點。我們也將建立工具組合來提升顧客認知互動。

On the science side, the science behind VLN cigarettes is proven. Our products and results have been recognized and documented by the FDA and the World Health Organization in their efforts to establish low nicotine standards worldwide. Multiple scientific studies have consistently demonstrated the merits of our VLN products.

在科學方面，VLN 香菸背後的科學已被證實。我們的產品與成果已獲 FDA 與世界衛生組織（WHO）在其推動全球低尼古丁標準的努力中認可並記錄在案。多項科學研究一再證明我們 VLN 產品的優點。

Using our proprietary technology, we have created and will continue to create new and innovative products, as well as new strains of non-GMO low-nicotine tobacco to support our brands and other brands around the world as opportunities arise. We continue to engage the scientific community in advancing approaches to this problem, using the form factor most comfortable for the smoking consumer, a cigarette.

運用我們的專有技術，我們已創造、並將持續創造新的創新產品，以及新的非基改（non-GMO）低尼古丁菸草品系，以在機會出現時支援我們的品牌與全球其他品牌。我們也持續與科學界合作，推進解決此問題的方法，並採用吸菸消費者最習慣的形式——香菸。

On the financial side, we are addressing the remaining low or no margin products that we still produce. We're addressing pricing first, and we are continuing to exit the few remaining unprofitable contracts while ensuring our customers have continuity of supply. This, along with our branded product initiatives, including VLN products. We'll begin to produce the anticipated improvements in gross profits as the year progresses.

在財務方面，我們正在處理仍在生產的其餘低毛利或零毛利產品。我們首先著手調整定價，並在確保客戶供應不中斷的前提下，持續退出少數仍然虧損的合約。這些措施，加上我們的品牌產品計畫（包括 VLN 產品），將隨著年度推進開始帶來預期的毛利改善。

On the operating expense side, consistent with our remarks in previous quarters, we will be adding headcount in marketing and sales as we continue to unfold new opportunities to expand.

在營業費用方面，與我們前幾季的說明一致，隨著我們持續開展新的擴張機會，我們將在行銷與銷售端增加人力。

And with that, I'll turn the call over to Dan for a review of the financials.

接下來，我把電話會議交給 Dan，請他回顧財務表現。

Thank you, Larry. For the first quarter of 2026, net revenue was $4.1 million, compared to $3.5 million in the fourth quarter of 2025, an increase of approximately 16.1% on a sequential basis. Gross loss for the quarter was $0.6 million, compared to a gross loss of $0.8 million in the fourth quarter of 2025.

謝謝你，Larry。2026 年第一季淨營收為 410 萬美元，相較於 2025 年第四季的 350 萬美元，按季增加約 16.1%。本季毛損為 60 萬美元，相較於 2025 年第四季毛損 80 萬美元。

As Larry noted, while first-quarter revenue improved sequentially, overall topline and profitability performance still remain below where we are targeting. That said, we believe the sequential improvement in revenue and gross margin is an early indicator of the commercial progress we are working to build on as distribution expands and product mix continues to evolve.

如 Larry 所提，雖然第一季營收按季改善，但整體營收規模與獲利表現仍低於我們的目標水準。即便如此，我們認為營收與毛利率的按季改善，是我們正在努力建立的商業進展的早期指標；隨著通路擴張、產品組合持續演變，我們將在此基礎上繼續推進。

Operating loss for the quarter was $3 million compared to $2.8 million in the fourth quarter of 2025. Net loss from continuing operations was $3 million, compared to $2.8 million in the fourth quarter of 2025. And finally, adjusted EBITDA for the quarter was negative $2.6 million, compared to negative $2.4 million in the fourth quarter of 2025.

本季營業損失為 300 萬美元，相較於 2025 年第四季的 280 萬美元。持續營運淨損為 300 萬美元，相較於 2025 年第四季的 280 萬美元。最後，本季調整後 EBITDA 為負 260 萬美元，相較於 2025 年第四季的負 240 萬美元。

While our near-term profitability metrics remain under pressure, our operating focus continues to be on scaling revenue, improving gross margin mix, and managing costs in a disciplined way as we expand the platform.

雖然我們的短期獲利指標仍承受壓力，但我們的營運重點仍是：擴大營收規模、改善毛利組合，並在擴展平台的同時以紀律方式管理成本。

Turning to the balance sheet, we ended the quarter with cash and cash equivalents of $9.5 million. We continue to manage liquidity carefully and remain focused on aligning spending with our highest priority commercial and regulatory initiatives. Capital allocation remains disciplined with resources directed toward distribution growth, VLN, commercial support, marketing initiatives and key opportunities for advancement of our reduced nicotine pipeline.

談到資產負債表，我們在季末的現金及約當現金為 950 萬美元。我們持續謹慎管理流動性，並專注於讓支出與我們最高優先順序的商業與法規推進計畫一致。資本配置仍維持紀律，資源將投入於通路成長、VLN、商業支援、行銷計畫，以及推進我們降尼古丁產品線的關鍵機會。

For the remainder of 2026, we're solely focused on execution. That includes growing store count to more than 5,000 locations, expanding retail availability, supporting new launches under the Pinnacle portfolio of products and partner VLN platform, and improving the underlying economics of the business through better absorption and mix.

在 2026 年剩餘時間，我們將專注於執行。這包括把門市數量提升至超過 5,000 個據點、擴大零售可得性、支援 Pinnacle 產品組合與合作夥伴 VLN 平台下的新產品上市，並透過更佳的產能吸收與產品組合來改善業務的基礎經濟性。

While the timing of that improvement may not be linear quarter-to-quarter, we continue to believe, and we are very excited about the back half of the year, which has the potential to show much stronger commercial momentum than the first half.

雖然改善的時間點可能不會在每一季之間呈線性變化，但我們仍然相信，並且對下半年感到非常振奮；下半年有潛力展現遠強於上半年的商業動能。

With that, I'll now turn the call back to Larry for closing comments.

接下來，我把電話會議交回給 Larry 作結語。

Thank you, Dan. As we look further into 2026, our priorities are clear. We are focused on execution. This includes expanding distribution, increasing retail outlets, improving the effectiveness of our VLN marketing campaigns, broadening the footprint of the Pinnacle franchise and continuing to advance the regulatory and product pipeline behind our current VLN reduced nicotine platform.

謝謝你，Dan。展望 2026 年更往後，我們的優先事項很明確：我們專注於執行。這包括擴大通路、增加零售據點、提升我們 VLN 行銷活動的成效、擴大 Pinnacle 品牌系列的版圖，並持續推進支撐我們現有 VLN 降尼古丁平台的法規與產品研發管線。

We have very disruptive technology and products with our low nicotine tobacco and VLN cigarettes. In fact, VLN is the only authorized disruptive product in the form of a cigarette on the market, and it is fully aligned and recognized by the global organizations who have adopted a mission to get to a smoke-free world.

我們的低尼古丁菸草與 VLN 香菸具備非常顛覆性的技術與產品。事實上，VLN 是市場上唯一以香菸形式存在、且獲授權的顛覆性產品，並且與致力於實現無菸世界使命的全球組織完全一致並獲其認可。

To really accomplish this, they know that nicotine must be addressed. But step one is the smoking public. We believe at this time, we have the antidote. There are 1.1 billion smokers in the world, and a host of them are looking for an answer to change. We have the answer, and that's the size of our opportunity.

要真正達成這個目標，他們知道必須處理尼古丁問題。但第一步是吸菸大眾。我們相信在此刻，我們已擁有解方。全球有 11 億名吸菸者，其中許多人正在尋找改變的答案。我們有答案，而這就是我們機會的規模。

Our job now is execution. And we know we will face headwinds from the market, but we'll continue to drive VLN cigarettes into smokers' hands and target to change lives one pack at a time. I'd like to thank our team, as always, for their support and excellent execution, as well as their belief and commitment to the mission we are on.

我們現在的工作就是執行。我們知道將面臨市場逆風，但我們會持續把 VLN 香菸推到吸菸者手中，並以一包一包的方式為目標去改變人生。我要一如既往地感謝我們的團隊，感謝他們的支持與卓越執行，以及他們對我們使命的信念與承諾。

We appreciate your continued interest in 22nd Century and your participation on today's call. Have a nice day.

感謝各位持續關注 22nd Century，並參與今天的電話會議。祝各位有美好的一天。

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

本次電話會議已結束。感謝各位出席今天的簡報。您現在可以中斷連線。