22nd Century Group appoints Withum as new independent auditor following asset acquisition

22nd Century Group, Inc. (NASDAQ:XXII) announced the appointment of Withum Smith+Brown, PC as its new independent registered public accounting firm, effective immediately. The change follows the acquisition of certain assets of the company’s previous auditor, Freed Maxick P.C., by Withum.

According to a statement released in a Securities and Exchange Commission filing, the Audit Committee of the Board of Directors approved the replacement of Freed Maxick on August 22. The company informed Freed Maxick of the decision on the same day. Analysis from InvestingPro shows the company faces significant financial challenges, with a current ratio of 0.77 indicating short-term obligations exceed liquid assets.

Freed Maxick’s audit reports for the fiscal years ending December 31, 2023 and 2024 did not contain any adverse opinions, disclaimers, or modifications regarding uncertainty, audit scope, or accounting principles. The company stated there were no disagreements or reportable events with Freed Maxick on accounting matters, financial statement disclosures, or audit procedures during those fiscal years or the interim period up to August 22, 2025.

22nd Century Group provided Freed Maxick with a copy of the disclosures included in the SEC filing and requested a letter from the firm addressed to the Commission, stating whether it agreed with the company’s statements. That letter is included as an exhibit to the filing.

The Audit Committee approved the engagement of Withum Smith+Brown, PC as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025. The company also stated that during the fiscal years 2023 and 2024, and through August 22, 2025, neither it nor anyone acting on its behalf consulted Withum regarding the application of accounting principles, audit opinions, or any reportable events or disagreements.

This information is based on a press release statement contained in the company’s SEC filing.

In other recent news, 22nd Century Group has made significant strides with its Pinnacle-branded VLNⓇ reduced nicotine cigarettes. The company announced that it shipped its first stocking orders in August, marking the second brand to utilize its VLNⓇ technology. This development follows the adoption by Smoker Friendly and highlights the company’s ongoing efforts to promote reduced nicotine products. In financial updates, 22nd Century Group reported its Q2 2025 earnings, revealing a decrease in net revenue to $4 million from $6 million in the previous quarter. The company noted a strategic shift despite the mixed financial results. Additionally, the earnings call highlighted the launch of new innovative products, although the stock experienced a decline in premarket trading. These recent developments underscore the company’s dynamic approach in the tobacco industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.