22nd Century Group, Inc. Segments Disclosure
NOTE 17. SEGMENT AND GEOGRAPHIC INFORMATION
The Company has organized its business as a reportable segment (“Reporting Segment”), tobacco, as it operates and derives all revenues from its tobacco operations and products. This segment structure reflects the financial information and reports used by the Company’s management, specifically its Chief Operating Decision Maker (“CODM”), to make decisions regarding the Company’s business, including resource allocations and performance assessments. The Company’s Chief Executive Officer serves as the CODM. The accounting policies of the Reporting Segment are the same as those described in the summary of significant accounting policies. See Note 1 for additional information about the Company's business and significant accounting policies.
Consolidated net income (loss) from continuing operations, as presented on the Company's Consolidated Statements of Operations and Comprehensive Loss is a metric utilized by the CODM to assess the Reporting Segment's performance and allocate resources. Total consolidated assets, excluding assets held for sale, as presented on the Company's Consolidated Balance Sheets is used to measure the Reporting Segment's assets.
The CODM uses Consolidated net income (loss) from continuing operations to evaluate profitability generated from segment assets in determining the strategic decisions of the Company with respect to utilizing its assets. Consolidated net income (loss) from continuing operations is also used to monitor budget versus actual results.
The following table presents revenues and significant segment expenses from continuing operations for the years ended December 31, 2025 and 2024:
Year Ended | |||||
December 31, | |||||
2025 | | 2024 | |||
Consolidated net revenue | $ | 17,587 | $ | 24,382 | |
Less: | |||||
Cost of goods sold | 9,697 | 13,759 | |||
Excise taxes | 10,538 | 12,504 | |||
Selling, general and administration | 7,591 | 10,213 | |||
Research and development | 265 | 724 | |||
Depreciation and amortization | 911 | 1,003 | |||
Other segment items (1) | 247 | (420) | |||
Interest expense | 1,455 | 2,094 | |||
Segment net loss from continuing operations | $ | (13,117) | $ | (15,495) | |
(1) Other segment items include: other operating expenses, other (income) expense, interest income, and provision for income taxes. | |||||
The Company recognized the following depreciation and amortization costs from continuing operations:
Year Ended | |||||
December 31, | |||||
2025 | | 2024 | |||
Cost of goods sold | $ | 479 | $ | 510 | |
Selling, general and administration | — | 75 | |||
Total depreciation from continuing operations | $ | 479 | $ | 585 | |
Year Ended | |||||
December 31, | |||||
2025 | | 2024 | |||
Cost of goods sold | $ | 10 | $ | 10 | |
Research and development | 423 | 408 | |||
Total amortization from continuing operations | $ | 433 | $ | 418 | |
Geographic Area Information
For the years ended December 31, 2025 and 2024, substantially all third-party sales of product are shipped to customers in the United States. Additionally, as of December 31, 2025 and 2024, all long-lived assets are physically located or domiciled in the United States.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 26, 2026 | Showing above |
| 2024 | Mar 20, 2025 | |
| 2022 | Mar 9, 2023 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.