lol more dilution now over 160 million os... it just keep on coming folks...and there really isnt any need to do this as they have 50 millionin cash....but of course...the pps suffers because the leadership loves to dilute......
Our principal sources of liquidity are our cash and cash equivalents, short-term investment securities, and cash generated from our contract
manufacturing business. As of September 30, 2021, we had approximately $55,161 of cash and cash equivalents and short-term investments which is an
increase of $32,819 from December 31, 2020. This increase was primarily due to the cash exercise of our outstanding warrants in the first quarter of 2021
and a capital raise in the second quarter of 2021. Our short-term investment securities, along with sustained contract manufacturing sales, provide sufficient
resources for estimated contractual commitments, described further in Note 11 to our consolidated financial statements included herein, and normal cash
requirements for operations well beyond the next twelve months. In addition to the commitments described in Note 11 to our consolidated financial
statements included herein, we have secured contracts with select tobacco farmers to assist with the 2021 growing of our VLNC tobacco. These contracts
will increase the quantity of our current leaf inventory which will help support expected demand of VLN®, if MTRP authorization is granted by the FDA.
The cost of such growing efforts is dependent on the final agricultural yields and leaf quality, but we expect the cost to range between $1.5 million and $1.9
million. We also believe that we have appropriate liquidity to successfully manufacture and distribute our VLN® cigarette within 90 days of MRTP
authorization by the FDA, if granted in 2021, and appropriate liquidity for continued R&D investment in all of our plant franchises
