Forensic Analysis · Consumer Staples / Food & Beverage · as of Aug 27, 2026
22Nd Century Group, Inc. (XXII)
A forensic read on 22Nd Century Group, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
F · Poor — capital at risk
Forensic grade
Distress
Financial health
-46.5
Distress distance
Watch
Earnings quality
6
Forensic signals
-32.1%
ROE
-27.9%
Revenue growth
The financial-health reading above compares this company's equity at BOOK value, not at what the market currently pays for it — this free snapshot doesn't pull live market data. Treat it as a rough read, not the final word.
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
22Nd Century Group, Inc. earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads -46.5, placing it in the Distress zone (based on book value, not market value, since this free snapshot doesn't pull live market data — treat this zone as a rough read, not the final word). 6 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+63.3%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +63.3% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. The build is led by inventory up +115% against -29% in cost of sales and receivables up +112% against revenue -28%. A cash-flow measure on the same base agrees: reported earnings ran ahead of operating cash by 29% of net operating assets, against an accruals ratio of 63.3%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average.
114d
FY2024→FY2025
Inventory days.Days inventory outstanding moved from 81 to 114 FY2024→FY2025 (against cost of goods sold; inventory +115% vs -29% in cost of sales). Inventory is outrunning what's being sold — a flag for softening demand or obsolescence risk ahead.
-72.5%
FY2025
Return on invested capital.Return on invested capital is -72.5% in the latest fiscal year and slipping from -27% — well below its ~8% cost of capital, and it has been across FY2015–FY2025, so reinvested dollars have not been earning their keep.
2% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 2% of revenue in FY2025 — about $2.29 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 11.4% a year and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$17.6M
Revenue Growth YoY-27.9%
Net Margin-28.7%
Free Cash Flow-$7.8M
Return on Equity-32.1%
Debt / Equity0.14x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from 22Nd Century Group, Inc.'s actual 10-K/10-Q/8-K filings?
Data from SEC EDGAR public filings · metrics as of Aug 27, 2026. Forensic signals flag probability, not certainty.
22Nd Century Group, Inc. (XXII) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
55d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 25 to 55 days FY2024→FY2025 (receivables +112% vs revenue -28%). Across FY2021–FY2025 the day count ran 16 → 9 → 17 → 25 → 55 days, so the latest reading sits on top of a record that was flat or falling before it — one year's move, not a direction the business has been travelling in. Deferred revenue grew +1565% over the same period, which accounts for part of the balance but not for a day count that widened against the same quarters a year earlier. Measured against the same quarter twelve months earlier — like-for-like on the calendar, so an ordinary seasonal build cannot produce it — receivables took longer to collect in 7 consecutive quarters (Dec 2024 +18, Mar 2025 +41, Jun 2025 +51, Sep 2025 +41, Dec 2025 +55, Mar 2026 +39, Jun 2026 +35 days). In the latest of them the receivable balance grew +1% against sales -30%, so more of a quarter's billings were still outstanding at the period end than a year earlier — money the company has recognized and not yet been paid.
n/m (stock split)
FY2022–FY2025
Share count (stock split).Diluted share count changed -99% over the last 3 years to FY2025, but that includes a large one-time change around FY2023 consistent with a stock split or reverse split, not gradual buybacks or issuance — a split changes the count with NO effect on any holder's proportional ownership, so the raw -75.7%/yr figure isn't a real buyback/dilution read here.