Q3 Revenue Hits $4.8M but Net Loss Persists at $2.6M
XXII sits 41% above its 52-week low of $0.244 on elevated volume (41× avg).
Summary
Q3 revenue came in at $4.8 million, a sharp rebound from the $2.9 million posted in Q2, when sales fell 30% year-over-year on a deliberate pullback from low-priced export customers, with the rise driven by Pinnacle same-store growth. Gross profit was $0.4 million, but the top line still didn't cover costs: operating expenses were $3 million, leaving an operating loss of $2.6 million and a net loss of $2.6 million, with adjusted EBITDA at -$2.2 million. Cash and equivalents were $3.9 million at quarter end. The company remains unprofitable and, per the Q2 10-Q, carries going concern doubt plus a warrant amendment that could heavily dilute shareholders. The revenue jump is the number that matters here — it suggests the export exit may be bottoming out, but the loss shows the cost base still outruns the business.
At the time of this announcement, XXII was trading at $0.34 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $245.3K. The 52-week trading range was $0.24 to $540.00. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Reuters.