Successful Restructuring and Turnaround
The company completed a significant restructuring, reducing operating cash burn, restructuring the Board, eliminating cash bonuses and stock-based compensation, and reducing R&D and G&A expenses. This resulted in a dramatic reduction in liabilities by $18 million or nearly 50%.
Launch of VLN Product
The company is relaunching its VLN product, the first and only FDA authorized modified risk tobacco product, with redesigned packaging, new marketing strategies, and expanded state regulatory approvals.
Improved Balance Sheet and Debt Reduction
The balance sheet improved significantly with a reduction in liabilities by over $18 million and a further reduction in outstanding debt by $3.1 million in Q1 2025.
Positive Outlook for CMO Business
The CMO business showed promise with the signing of new contracts, including a long-term commitment from Smoker Friendly, and the introduction of Smoker Friendly Black, expected to be a growth engine in 2025.
Progress Towards Profitability
The company aims to achieve profitability in the P&L for the first time in its history in 2025 by expanding VLN distribution and achieving revenue growth and margin improvement.