22nd Century (XXII) 10-Q 5 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 05, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Amendment Flag	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity File Number	001-36338
Entity Registrant Name	22nd Century Group, Inc.
Entity Central Index Key	0001347858
Current Fiscal Year End Date	--12-31
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	98-0468420
Entity Address, Address Line One	8560 Main Street
Entity Address, Address Line Two	Suite 4
Entity Address, City or Town	Williamsville
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	14221
City Area Code	716
Local Phone Number	270-1523
Title of 12(b) Security	Common Stock, $0.00001 par value
Security Exchange Name	NYSEAMER
Trading Symbol	XXII
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		138,859,193

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current Assets:
Cash and cash equivalents	$ 1,542	$ 485
Short-term investment securities	25,276	38,477
Accounts receivable, net	1,559	867
Inventory, net	2,311	2,266
Prepaid expenses and other assets	2,401	648
Total current assets	33,089	42,743
Property, plant and equipment:
Machinery and equipment, net	2,689	3,120
Operating leases right-of-use assets, net	572	602
Total property, plant and equipment	3,261	3,722
Other assets:
Intangible assets, net	8,231	8,494
Investments	7,015	8,403
Convertible note	5,804	5,589
Total other assets	21,050	22,486
Total assets	57,400	68,951
Current liabilities:
Notes payable	1,523	581
Operating lease obligations	339	220
Accounts payable	1,114	1,997
Accrued expenses	3,145	2,619
Accrued severance, current	423	359
Deferred income	0	5
Total current liabilities	6,544	5,781
Long-term liabilities:
Notes payable	292	292
Operating lease obligations	233	382
Severance obligations	294	446
Total long-term liabilities	819	1,120
Commitments and contingencies (Note 11)
Shareholders' equity
Common stock value	1	1
Capital in excess of par value	188,897	187,735
Accumulated other comprehensive (loss) income	139	7
Accumulated deficit	(139,000)	(125,693)
Total shareholders' equity	50,037	62,050
Total liabilities and shareholders' equity	$ 57,400	$ 68,951

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
CONSOLIDATED BALANCE SHEETS
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, par value	$ 0.00001	$ 0.00001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, shares issued	138,859,193	138,362,809
Common stock, shares outstanding	138,859,193	138,362,809

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue:
Sale of products, net	$ 7,310	$ 6,462	$ 20,803	$ 18,571
Cost of goods sold (exclusive of depreciation shown separately below):
Products	6,948	6,483	19,953	18,781
Gross profit (loss)	362	(21)	850	(210)
Operating expenses:
Selling, general and administrative (including equity-based compensation )	3,169	4,059	9,809	9,119
Impairment of intangible assets	0	1,142	146	1,142
Depreciation	160	158	473	440
Amortization	163	233	524	671
Total operating expenses	4,402	7,585	13,786	17,803
Operating loss	(4,040)	(7,606)	(12,936)	(18,013)
Other income (expense):
Unrealized (loss) gain on investment	(429)	(2,959)	(562)	(1,410)
Impairment of stock warrant			(1,062)
Realized (loss) on short-term investment securities		90		146
Litigation expense			0	(1,891)
Gain on the sale of machinery and equipment	1		1	87
Interest income, net	270	242	1,344	757
Interest expense	(23)	(12)	(54)	(36)
Total other income (expense)	(181)	(2,639)	(333)	(2,347)
Loss before income taxes	(4,221)	(10,245)	(13,269)	(20,360)
Income taxes			38
Net loss	(4,221)	(10,245)	(13,307)	(20,360)
Other comprehensive income (loss):
Unrealized gain (loss) on short-term investment securities	87	3	132	239
Reclassification of gain to net loss		(90)		(146)
Other comprehensive income (loss)	87	(87)	132	93
Comprehensive loss	$ (4,134)	$ (10,332)	$ (13,175)	$ (20,267)
Net loss per common share - basic and diluted	$ (0.03)	$ (0.08)	$ (0.10)	$ (0.16)
Weighted average common shares outstanding - basic and diluted (in thousands)	138,857	125,420	138,774	124,912
Products Other Than Modified Risk Tobacco Products [Member]
Operating expenses:
Research and development (including equity-based compensation )	$ 906	$ 1,924	$ 2,676	$ 4,838
Modified Risk Tobacco Product [Member]
Operating expenses:
Research and development (including equity-based compensation )	$ 4	$ 69	$ 158	$ 1,593

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($)	Common Stock [Member]	Capital in Excess of Par Value [Member]	Accumulated Other Comprehensive Income [Member]	Accumulated Deficit [Member]	Total
Beginning balance at Dec. 31, 2018	$ 1,000	$ 170,392,000	$ 21,000	$ (99,134,000)	$ 71,280,000
Beginning balance (in shares) at Dec. 31, 2018	124,642,593
Stock issued in connection with option exercises	$ 0	0	0	0	0
Net shares issued for options exercised (in shares)	17,407
Equity-based compensation	$ 0	449,000	0	0	449,000
Equity-based compensation (in shares)	0
Unrealized gain (loss) on short-term investment securities	$ 0	0	147,000	0	147,000
Reclassification of losses (gains) to net loss	0	0	16,000	0	16,000
Net loss	0	0	0	(2,073,000)	(2,073,000)
Ending balance at Mar. 31, 2019	$ 1,000	170,841,000	184,000	(101,207,000)	69,819,000
Ending balance (in shares) at Mar. 31, 2019	124,660,000
Beginning balance at Dec. 31, 2018	$ 1,000	170,392,000	21,000	(99,134,000)	71,280,000
Beginning balance (in shares) at Dec. 31, 2018	124,642,593
Net loss					(20,360,000)
Ending balance at Sep. 30, 2019	$ 1,000	174,689,000	114,000	(119,494,000)	55,310,000
Ending balance (in shares) at Sep. 30, 2019	125,772,581
Beginning balance at Mar. 31, 2019	$ 1,000	170,841,000	184,000	(101,207,000)	69,819,000
Beginning balance (in shares) at Mar. 31, 2019	124,660,000
Net shares issued for options exercised (in shares)	13,936
Equity-based compensation		517,000			517,000
Unrealized gain (loss) on short-term investment securities			89,000		89,000
Reclassification of losses (gains) to net loss			(72,000)		(72,000)
Net loss				(8,042,000)	(8,042,000)
Ending balance at Jun. 30, 2019	$ 1,000	171,358,000	201,000	(109,249,000)	62,311,000
Ending balance (in shares) at Jun. 30, 2019	124,673,936
Stock issued in connection with RSU vesting (in shares)	100,000
Net shares issued for options exercised (in shares)	8,645
Equity-based compensation		1,440,000			1,440,000
Stock issued in connection with litigation expense		1,891,000			1,891,000
Stock issued in connection with litigation expense (in shares)	990,000
Unrealized gain (loss) on short-term investment securities			3,000		3,000
Reclassification of losses (gains) to net loss			(90,000)		(90,000)
Net loss				(10,245,000)	(10,245,000)
Ending balance at Sep. 30, 2019	$ 1,000	174,689,000	114,000	(119,494,000)	55,310,000
Ending balance (in shares) at Sep. 30, 2019	125,772,581
Beginning balance at Dec. 31, 2019	$ 1,000	187,735,000	7,000	(125,693,000)	62,050,000
Beginning balance (in shares) at Dec. 31, 2019	138,362,809
Stock issued in connection with RSU vesting	$ 0	0	0	0	0
Stock issued in connection with RSU vesting (in shares)	491,384
Equity-based compensation	$ 0	480,000	0	0	480,000
Equity-based compensation (in shares)	0
Unrealized gain (loss) on short-term investment securities	$ 0	0	(196,000)	0	(196,000)
Reclassification of losses (gains) to net loss	0	0	3,000	0	3,000
Net loss	0	0	0	(4,029,000)	(4,029,000)
Ending balance at Mar. 31, 2020	$ 1,000	188,215,000	(186,000)	(129,722,000)	58,308,000
Ending balance (in shares) at Mar. 31, 2020	138,854,193
Beginning balance at Dec. 31, 2019	$ 1,000	187,735,000	7,000	(125,693,000)	62,050,000
Beginning balance (in shares) at Dec. 31, 2019	138,362,809
Net loss					(13,307,000)
Ending balance at Sep. 30, 2020	$ 1,000	188,897,000	139,000	(139,000,000)	50,037,000
Ending balance (in shares) at Sep. 30, 2020	138,859,193
Beginning balance at Mar. 31, 2020	$ 1,000	188,215,000	(186,000)	(129,722,000)	58,308,000
Beginning balance (in shares) at Mar. 31, 2020	138,854,193
Equity-based compensation		376,000			376,000
Unrealized gain (loss) on short-term investment securities			241,000		241,000
Reclassification of losses (gains) to net loss			(3,000)		(3,000)
Net loss				(5,057,000)	(5,057,000)
Ending balance at Jun. 30, 2020	$ 1,000	188,591,000	52,000	(134,779,000)	53,865,000
Ending balance (in shares) at Jun. 30, 2020	138,854,193
Stock issued in connection with RSU vesting (in shares)	5,000
Equity-based compensation		306,000			306,000
Unrealized gain (loss) on short-term investment securities			87,000		87,000
Net loss				(4,221,000)	(4,221,000)
Ending balance at Sep. 30, 2020	$ 1,000	$ 188,897,000	$ 139,000	$ (139,000,000)	$ 50,037,000
Ending balance (in shares) at Sep. 30, 2020	138,859,193

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net loss	$ (13,307)	$ (20,360)
Adjustments to reconcile net loss to cash used in operating activities:
Impairment of intangible assets	146	1,142
Impairment of stock warrant	1,062
Amortization and depreciation	810	932
Amortization of license fees	187	179
Amortization of ROU assets	232	159
Unrealized (gain) loss on investment	562	1,410
Realized (gain) loss on short-term investment securities		(146)
Litigation settlement	0	1,891
Gain on the sale of machinery and equipment	(1)	(87)
Accretion of non cash interest expense	34	33
Accretion of non-cash interest income	(256)
Equity-based employee compensation expense	1,162	2,406
Inventory write-off	219	882
(Increase) decrease in assets:
Accounts receivable	(692)	97
Inventory	(264)	(222)
Prepaid expenses and other assets	(1,754)	55
Increase (decrease) in liabilities:
Operating lease obligations	(228)	(159)
Accounts payable	(924)	(1,082)
Accrued expenses	481	(30)
Accrued severance	(88)	691
Deferred income	(5)	511
Net cash provided by (used in) operating activities	(12,624)	(11,698)
Cash flows from investing activities:
Acquisition of patents and trademarks	(342)	(444)
Acquisition of machinery and equipment	(33)	(499)
Proceeds from the sale of machinery and equipment	0	166
Sales and maturities of short-term investment securities	28,960	15,966
Purchase of short-term investment securities	(15,830)	(3,079)
Net cash provided by investing activities	12,755	12,110
Cash flows from financing activities:
Payment on note payable	(1,269)	(400)
Proceeds from note payable issuance	2,195
Proceeds from SBA loan	1,183
Repayment of SBA loan	(1,183)
Net cash used in financing activities	926	(400)
Net increase (decrease) in cash and cash equivalents	1,057	12
Cash and cash equivalents - beginning of period	485	605
Cash and cash equivalents - end of period	1,542	617
Net cash paid for:
Cash paid during the period for interest	19	3
Non-cash transactions:
Patent and trademark additions included in accounts payable	19	154
Machinery and equipment additions included in accounts payable	9	0
Right-of-use assets and corresponding operating lease obligations	198	$ 814
Patent and trademark additions included in accrued expenses	$ 46

NATURE OF BUSINESS AND SUMMARY

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2020
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1. - NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation - Operating results for the nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The balance sheet as of December 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all the information and footnotes required by GAAP for complete financial statements. These interim consolidated financial statements should be read in conjunction with the December 31, 2019 audited consolidated financial statements and the notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the Securities and Exchange Commission on March 11, 2020. Principles of Consolidation - Nature of Business - Reclassifications COVID-19 Pandemic Our Williamsville, NY corporate office and our R&D laboratory in Buffalo, NY remain open and are currently operating under strict safety protocols in accordance with New York State’s reopening guidelines. These protocols include physical distancing, mandatory face coverings, disinfection of surfaces, and other health and safety measures. We continue to encourage remote work arrangements by our employees where job duties permit. Our laboratory in Buffalo is working to almost full capacity while some of our external research and development partners are operating on a modified or limited schedule during this period of the pandemic. The temporary closure of our laboratory and the interruption to our workflow related to COVID-19 has had a minimum impact on our research operations. Our NASCO production facility in North Carolina remains open and, despite the pandemic, we have been able to fulfill sales orders in a timely manner. The safety and well-being of our employees remains a top priority and we to continue monitor and operate in line with local, state, and federal safety guidelines. An outbreak at our production facility, or disruption in our supply chain, could cause us to slow or temporarily cease our manufacturing operations. Our executive leadership team and staff are monitoring this evolving situation and its impacts on our business. We will continue to monitor the local, state and federal guidance regarding our business practices. Use of Estimates - Fair Value of Financial Instruments - Investments - Stock Based Compensation Income Taxes -

INVENTORY

INVENTORY	9 Months Ended
	Sep. 30, 2020
INVENTORY
INVENTORY	NOTE 2. - INVENTORY Inventories are valued at the lower of historical cost or net realizable value. Cost is determined using an average cost method for tobacco leaf inventory and raw materials inventory and standard cost is primarily used for finished goods inventory. Inventories are evaluated to determine whether any amounts are not recoverable based on slow moving or obsolete condition and are written off or reserved as appropriate. During the three and nine months ended September 30, 2020, the Company wrote off inventory totaling $219 on the Company’s Consolidated Statement of Operations and Comprehensive Loss ($58 included within research and development expenses and $161 included within cost of goods sold). During the three and nine months ended September 30, 2019, the Company wrote off inventory totaling $882 which is included within research and development expenses on the Company’s Consolidated Statement of Operations and Comprehensive Loss. ​ Inventories at September 30, 2020 and December 31, 2019 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ 2020 2019 Inventory - tobacco leaf ​ $ 1,105 ​ $ 1,178 Inventory - finished goods ​ ​ ​ ​ ​ Cigarettes and filtered cigars ​ 201 ​ 106 Inventory - raw materials ​ ​ ​ ​ Cigarette and filtered cigar components ​ ​ 1,105 ​ ​ 1,082 ​ ​ ​ ​ ​ ​ ​ Less: inventory reserve ​ (100) ​ (100) ​ ​ $ 2,311 ​ $ 2,266 ​

MACHINERY AND EQUIPMENT

MACHINERY AND EQUIPMENT	9 Months Ended
	Sep. 30, 2020
MACHINERY AND EQUIPMENT
MACHINERY AND EQUIPMENT	NOTE 3. - MACHINERY AND EQUIPMENT Machinery and equipment at September 30, 2020 and December 31, 2019 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ Useful Life 2020 2019 Cigarette manufacturing equipment ​ 3 or 10 years ​ $ 4,892 ​ $ 4,870 Office furniture, fixtures and equipment ​ 5 Years ​ 162 ​ 152 Laboratory equipment ​ 5 Years ​ 117 ​ 125 Leasehold improvements ​ 6 Years ​ 273 ​ 257 ​ ​ ​ ​ ​ ​ ​ Less: accumulated depreciation ​ ​ (2,755) ​ (2,284) Machinery and equipment, net ​ ​ $ 2,689 ​ $ 3,120 ​ Depreciation expense was $160 and $473 for the three and nine months ended September 30, 2020, respectively ($158 and $440 for the three and nine months ended September 30, 2019, respectively).

RIGHT-OF-USE ASSETS, LEASE OBLI

RIGHT-OF-USE ASSETS, LEASE OBLIGATIONS, AND OTHER LEASES	9 Months Ended
	Sep. 30, 2020
RIGHT-OF-USE ASSETS, LEASE OBLIGATIONS, AND OTHER LEASES
RIGHT-OF-USE ASSETS, LEASE OBLIGATIONS, AND OTHER LEASES	NOTE 4. - RIGHT-OF-USE ASSETS, LEASE OBLIGATIONS, AND OTHER LEASES On January 1, 2019, the Company adopted ASU 2016-02, Subtopic ASC 842, Leases (the “new guidance”) and elected to use the practical expedient which allowed the Company to carry forward the historical lease classifications of the existing leases as of adoption. Our lessee right of use (ROU) assets represent our right to use an underlying asset and our lease liabilities represent our obligation to make lease payments. The Company leases a manufacturing facility and warehouse in North Carolina, a corporate office space in Williamsville, New York, and a laboratory space in Buffalo, New York. The ROU assets and lease liabilities for these operating leases are recognized as of the commencement date at the net present value of the fixed minimum lease payments for the lease term. The discount rate used is the interest rate implicit in the lease, if available, or the Company’s incremental borrowing rate which is determined using a base line rate plus an applicable spread. The following table summarizes the Company’s discount rate and remaining lease terms: ​ ​ ​ ​ ​ ​ Weighted average remaining lease term in years ​ ​ 2.3 ​ Weighted average discount rate ​ 4.8 % ​ Future minimum lease payments as of September 30, 2020 are as follows: ​ ​ ​ ​ ​ 2020 ​ $ 87 2021 ​ 324 2022 ​ 92 2023 ​ ​ 88 2024 ​ 15 Total lease payments ​ 606 Less: imputed interest ​ (34) Total ​ $ 572 ​

INVESTMENTS & CONVERTIBLE NOTE

INVESTMENTS & CONVERTIBLE NOTE RECEIVABLE	9 Months Ended
	Sep. 30, 2020
INVESTMENTS & CONVERTIBLE NOTE RECEIVABLE
INVESTMENTS & CONVERTIBLE NOTE RECEIVABLE	NOTE 5. – INVESTMENTS & CONVERTIBLE NOTE RECEIVABLE Investment in Panacea Life Sciences, Inc. On December 3, 2019, the Company entered into a securities purchase agreement with Panacea Life Sciences, Inc. (“Panacea”) for $13,297 in exchange for a 15.8% ownership interest. The Company’s investment consists of three instruments: shares of Series B preferred stock (“preferred stock”); a convertible note receivable; and a warrant (“stock warrant”) to purchase additional shares of Series B preferred stock, to obtain 51% ownership of Panacea, at an exercise price of $2.344 per share. The convertible note receivable has a term of five years , bears interest of 10% per annum, and can be converted to shares of Series B preferred stock at the Company’s discretion. The preferred stock carries an annual 10% cumulative dividend, compounded annually, and has an implicit put option after the fifth anniversary date so long that the stock warrants have not been exercised. The stock warrant may be exercised at any time after the fifth anniversary date and would be accelerated if Panacea achieves certain sales targets for two consecutive years. The Series B preferred stock also has equity preferences in the event of a liquidation, sale, or transfer of Panacea assets. The convertible note receivable and the preferred stock investment are considered available for sale debt securities with a private company that is not traded in active markets. Since observable price quotations were not available at acquisition, fair value was estimated based on cost less an appropriate discount upon acquisition. The discount of each instrument is accreted into interest income over the respective term as shown within the Company’s Consolidated Statements of Operations and Comprehensive Loss. See Note 6 for additional information on these fair value measurements. The stock warrant was recorded at its cost basis in accordance with the practical expedient under ASU 2016-01. In accordance with ASC 326-30-35 and ASC 321-35-3, credit loss risk of available-for-sale securities and impairment risk of investments recorded at cost should be evaluated if negative indicators are present. During 2020, the cannabidiol (CBD) industry has experienced an overall decline due to increased competition, FDA regulation uncertainty, and continued uncertainty from COVID-19—all relevant impairment indicators for the valuation of our Panacea investment. Based on the Company’s assessment, it was determined that no risk of credit loss existed for the available-for-sale debt security instruments as of September 30, 2020. As such, we concluded that the recorded value aligns with the expected cash flows of the instruments. However, the Company determined that the recorded cost basis of the stock warrant exceeded its fair value due to the negative macroeconomic indicators mentioned above. As such, the Company recognized an impairment charge of $1,062 during the nine months ended September 30, 2020. Investment in Aurora Cannabis, Inc. The Company has an investment in Aurora Cannabis Inc. (“Aurora”) stock warrants that are considered equity securities under ASC 321 – Investments – Equity Securities and a derivative instrument under ASC 815 – Derivatives and Hedging. The stock warrants are not designated as a hedging instrument, and in accordance with ASC 815, the Company’s investment in stock warrants are recorded at fair value with changes in fair value recorded to unrealized gain/loss as shown within the Company’s Consolidated Statements of Operations and Comprehensive Loss. See Note 6 for additional information on the fair value measurements. The carrying value of the Company’s investments at September 30, 2020 and December 31, 2019 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2020 ​ 2019 Aurora stock warrants $ 111 $ 673 Panacea preferred stock ​ ​ 5,101 ​ ​ 4,865 Panacea stock warrant ​ ​ 1,803 ​ ​ 2,865 Total Investments ​ $ 7,015 ​ $ 8,403 Convertible Note Receivable ​ $ 5,804 ​ $ 5,589 ​

FAIR VALUE MEASUREMENTS AND SHO

FAIR VALUE MEASUREMENTS AND SHORT-TERM INVESTMENTS	9 Months Ended
	Sep. 30, 2020
FAIR VALUE MEASUREMENTS AND SHORT-TERM INVESTMENTS
FAIR VALUE MEASUREMENTS AND SHORT-TERM INVESTMENTS	NOTE 6. – FAIR VALUE MEASUREMENTS AND SHORT-TERM INVESTMENTS FASB ASC 820 - “Fair Value Measurements and Disclosures” establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: ● Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; ● Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and ● Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. A financial asset’s or a financial liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The following table presents information about our assets and liabilities measured at fair value as of September 30, 2020 and December 31, 2019, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value ​ ​ September 30, 2020 ​ Level 1 Level 2 Level 3 Total Assets ​ ​ ​ ​ Short-term investment securities: ​ ​ ​ ​ Money market funds ​ $ 5,111 ​ $ — ​ $ — ​ $ 5,111 Corporate bonds ​ — ​ 20,165 ​ — ​ 20,165 Total short-term investment securities ​ $ 5,111 ​ $ 20,165 ​ $ — ​ $ 25,276 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment - Aurora stock warrants ​ $ — ​ $ — ​ $ 111 ​ $ 111 Investment - Panacea preferred stock ​ $ — ​ $ — ​ $ 5,101 ​ $ 5,101 Convertible note receivable ​ $ — ​ $ — ​ $ 5,804 ​ $ 5,804 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value ​ ​ December 31, 2019 ​ Level 1 Level 2 Level 3 Total Assets ​ ​ ​ ​ Short-term investment securities: ​ ​ ​ ​ Money market funds ​ $ 12,146 ​ $ — ​ $ — ​ $ 12,146 Corporate bonds ​ — ​ 26,331 ​ — ​ 26,331 Total short-term investment securities ​ $ 12,146 ​ $ 26,331 ​ $ — ​ $ 38,477 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment - Aurora stock warrants ​ $ — ​ $ — ​ $ 673 ​ $ 673 Investment - Panacea preferred stock ​ $ — ​ $ — ​ $ 4,865 ​ $ 4,865 Convertible note receivable ​ $ — ​ $ — ​ $ 5,589 ​ $ 5,589 ​ Money market mutual funds are valued at their daily closing price as reported by the fund. Money market mutual funds held by the Company are open-end mutual funds that are registered with the SEC that generally transact at a stable $1.00 Net Asset Value (“NAV”) representing its estimated fair value. On a daily basis the fund’s NAV is determined by the fund based on the amortized cost of the funds underlying investments. Corporate bonds are valued using pricing models maximizing the use of observable inputs for similar securities. The investment in the Aurora stock (ACB) warrants is measured at fair value using the Black-Scholes pricing model and is classified within Level 3 of the valuation hierarchy. The unobservable input is an estimated volatility factor of 134% and 83% as of September 30, 2020 and December 31, 2019, respectively. Therefore, changes in market volatility will impact the fair value measurement of our ACB investment. A 20% increase or decrease in the volatility factor used as of September 30, 2020 would have the impact of increasing or decreasing the fair value measurement of the stock warrants by approximately $64. A 20% increase or decrease in the volatility factor used at December 31, 2019 would have the impact of increasing or decreasing the fair value measurement of the stock warrants by approximately $260. The Panacea convertible note receivable and the preferred stock investment are considered available-for-sale debt securities with a private company that is not traded in active markets. Since observable price quotations were not available, fair value was estimated based on cost less an appropriate discount upon acquisition. The discount of each instrument is accreted into interest income over the respective term and will adjust the amortized cost basis of the investments. ​ The following table sets forth a summary of the changes in fair value of the Company’s Level 3 investments for the nine months ended September 30, 2020: ​ ​ ​ ​ ​ Fair Value at December 31, 2019 ​ $ 11,127 Unrealized loss as a result of change in fair value ​ ​ (562) Accretion of interest on Panacea Investment ​ ​ 451 Fair Value at September 30, 2020 ​ $ 11,016 ​ The following tables set forth a summary of the Company’s available-for-sale debt securities from amortized cost basis to fair value as of September 30, 2020 and December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available for Sale Debt Securities ​ ​ September 30, 2020 ​ ​ Amortized ​ Gross ​ Gross ​ ​ ​ ​ ​ Cost ​ Unrealized ​ Unrealized ​ Fair ​ Basis Gains Losses Value Corporate bonds ​ $ 20,026 ​ $ 139 ​ $ — ​ $ 20,165 Convertible note receivable ​ 5,804 ​ — ​ — ​ 5,804 Investment - Panacea preferred stock ​ 5,101 ​ — ​ — ​ 5,101 ​ ​ $ 30,931 ​ $ 139 ​ $ — ​ $ 31,070 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available for Sale Debt Securities ​ ​ December 31, 2019 ​ ​ Amortized ​ Gross ​ Gross ​ ​ ​ ​ ​ Cost ​ Unrealized ​ Unrealized ​ Fair ​ Basis Gains Losses Value Corporate bonds ​ $ 26,324 ​ $ 64 ​ $ (57) ​ $ 26,331 Convertible note receivable ​ 5,589 ​ — ​ — ​ 5,589 Investment - Panacea preferred stock ​ 4,865 ​ — ​ — ​ 4,865 ​ ​ $ 36,778 ​ $ 64 ​ $ (57) ​ $ 36,785 ​ The following table sets forth a summary of the Company’s available-for-sale securities from amortized cost basis and fair value by contractual maturity as of September 30, 2020 and December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available for Sale Debt Securities ​ ​ September 30, 2020 ​ December 31, 2019 ​ ​ Amortized ​ ​ ​ ​ Amortized ​ ​ ​ ​ Cost Basis Fair Value Cost Basis Fair Value Due in one year or less ​ $ 18,197 ​ $ 18,307 ​ $ 16,823 ​ $ 16,851 Due after one year through five years ​ 12,734 ​ 12,763 ​ 9,501 ​ 9,480 Due in five years ​ ​ — ​ ​ — ​ ​ 10,454 ​ ​ 10,454 ​ ​ $ 30,931 ​ $ 31,070 ​ $ 36,778 ​ $ 36,785 ​

INTANGIBLE ASSETS

INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2020
INTANGIBLE ASSETS
INTANGIBLE ASSETS	NOTE 7. - INTANGIBLE ASSETS Intangible assets are recorded at cost and consist primarily of (1) expenditures incurred with third-parties related to the processing of patent claims and trademarks with government authorities, as well as costs to acquire patent rights from third-parties, (2) license fees paid for third-party intellectual property, (3) costs to become a signatory under the tobacco MSA, and (4) license fees paid to acquire a predicate cigarette product. The amounts capitalized relate to intellectual property that the Company owns or to which it has exclusive rights. The Company’s intellectual property capitalized costs are amortized using the straight-line method over the remaining statutory life of the granted patent assets in each of the Company’s patent families, which have estimated expiration dates ranging from 2020 to 2036. Periodic maintenance or renewal fees are expensed as incurred. Annual minimum license fees are charged to expense. License fees paid for third-party intellectual property are amortized on a straight-line basis over the last to expire patents, which patent expiration dates are expected to range from 2020 through 2036. The Company believes costs associated with becoming a signatory to the MSA and acquiring a predicate cigarette product have an indefinite life and as such, no amortization is taken. Total intangible assets at September 30, 2020 and December 31, 2019 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2020 2019 Intangible assets, net ​ ​ Patent and trademark costs ​ $ 5,614 ​ $ 5,712 Less: accumulated amortization ​ (2,874) ​ (2,839) Patent and trademark costs, net ​ 2,740 ​ 2,873 ​ ​ ​ ​ ​ ​ ​ License fees ​ 3,826 ​ 3,777 Less: accumulated amortization ​ (887) ​ (708) License fees, net ​ 2,939 ​ 3,069 ​ ​ ​ ​ ​ ​ ​ MSA signatory costs ​ 2,202 ​ 2,202 ​ ​ ​ ​ ​ ​ License fee for predicate cigarette brand ​ 350 ​ 350 ​ ​ $ 8,231 ​ $ 8,494 ​ Amortization expense relating to the above intangible assets for the three and nine months ended September 30, 2020 amounted to $163 and $524 respectively ($233 and $671 for the three and nine months ended September 30, 2019 respectively). During the second quarter of 2020, the Company incurred an impairment related to patent intellectual property that would be expired before commercialization. Impairment expense for the three and nine months ended September 30, 2020 amounted to $0 and $146 (cost of approximately $448 less accumulated amortization of approximately $302), respectively. Impairment expense for the three and nine months ended September 30, 2019 amounted to $1,142 (cost of $2,092 less accumulated amortization of approximately $950).

NOTES PAYABLE

NOTES PAYABLE	9 Months Ended
	Sep. 30, 2020
NOTES PAYABLE
NOTES PAYABLE	NOTE 8. – NOTES PAYABLE License Fees On June 22, 2018, the Company entered into the Second Amendment to the License Agreement (the “Second Amendment”) with North Carolina State University (“NCSU”) that amended an original License Agreement between the Company and NCSU, dated December 8, 2015, and the First Amendment, dated February 14, 2018, to the original License Agreement. Under the terms of the Second Amendment, the Company was obligated to pay NCSU milestone payments totaling $1,200, which originally amounted to a present value of $1,175. As of June 30, 2020 the Company paid the final milestone payment of $300. The cost of the of acquired license amounted to $1,175 and is included in Intangible assets, net on the Company’s Consolidated Balance Sheets, and is amortized on a straight-line basis over the last-to-expire patent, which is expected to be in 2036. On October 22, 2018, the Company entered into a License Agreement with the University of Kentucky. Under the terms of the License Agreement, the Company is obligated to pay the University of Kentucky milestone payments totaling $1,200, of which $300 was payable upon execution, and $300 will be payable annually over three years on the anniversary of the execution of the License Agreement. The Company has recorded the present value of the obligations under the License Agreement as a note payable that originally amounted to $1,151. The cost of the of acquired licenses amounted to $1,151 and is included in Intangible assets, net on the Company’s Consolidated Balance Sheets and will be amortized on a straight-line basis over the last-to-expire patent, which is expected to be in 2033. CARES Act Paycheck Protection Program Loan On May 1, 2020, the Company received an U.S. Small Business Administration Loan (“SBA Loan”) from Bank of America, N.A. related to the COVID-19 crisis in the amount of $1.2 million. On May 12, 2020, the Company repaid the SBA loan in full. D&O Insurance During the second quarter of 2020, the Company renewed its Director and Officer (“D&O”) insurance for a one-year policy premium totaling $2,744. The Company paid $549 as a premium down payment and financed the remaining $2,195 of policy premiums over nine months at a 3.19% annual percentage rate. The financed amount is recorded within current notes payable on the Company’s Consolidated Balance Sheets. The table below outlines our notes payable balances as of September 30, 2020 and December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2020 2019 License Fees ​ $ 297 ​ $ 581 ​ D&O Insurance ​ 1,226 ​ — ​ Total current notes payable ​ $ 1,523 ​ $ 581 ​ ​ ​ ​ ​ ​ ​ Long term license fees ​ $ 292 ​ $ 292 ​ ​ Accretion of non-cash interest expense amounted to $4 and $17 for the three and nine months ended September 30, 2020, respectively, and $7 and $28 for the three and nine months ended September 30, 2019, respectively.

SEVERANCE LIABILITY

SEVERANCE LIABILITY	9 Months Ended
	Sep. 30, 2020
Postemployment Benefits [Abstract]
SEVERANCE LIABILITY	NOTE 9. – SEVERANCE LIABILITY During the second quarter of 2020, the Company recorded an accrual for severance benefits for $306 in accordance with FASB ASC 712 - “Compensation – Nonretirement Postemployment Benefits.” Consistent with certain contractual obligations related to a resignation, the Company will provide cash payments and full reimbursement for health insurance premiums under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”). The cash payments will be paid over a twelve-month period, on a bi-weekly basis, and the COBRA health insurance premiums will be reimbursed over twelve months . ​ During the third quarter of 2019, the Company recorded an accrual for severance benefits for $721 in accordance with FASB ASC 712 - “Compensation – Nonretirement Postemployment Benefits.” The severance accrual relates to the resignation of the Company’s former President and Chief Executive Officer (the “former CEO”) effective July 26, 2019. Concurrent with the former CEO’s resignation, the Company entered into a Consulting Agreement (the “Agreement”) with the former CEO. The Agreement calls for the Company to pay a monthly consulting fee to the former CEO in the amount of $17 plus health insurance benefits for a period of forty-two months . The Company concluded that the terms of the Agreement met the severance criteria in ASC 712 and accordingly, a severance accrual was recorded. The current and long-term accrued severance balance remaining as of September 30, 2020 was $423 and $294 , respectively. The current and long-term accrued severance balance remaining as of December 31, 2019 was $359 and $446 , respectively.

WARRANTS FOR COMMON STOCK

WARRANTS FOR COMMON STOCK	9 Months Ended
	Sep. 30, 2020
WARRANTS FOR COMMON STOCK
WARRANTS FOR COMMON STOCK	NOTE 10. - WARRANTS FOR COMMON STOCK The Company issued warrants to purchase 11,293,211 shares of common stock which remain outstanding as of September 30, 2020. The warrants have an exercise price of $1.11 per share and an expiration date of November 25, 2024. The outstanding warrants do not include anti-dilution features and therefore are not considered derivative instruments and do not have an associated warrant liability. The following table summarizes the Company’s outstanding warrant activity since December 31, 2018: ​ ​ ​ ​ ​ ​ Number of ​ ​ Warrants ​ in thousands Warrants outstanding at December 31, 2018 ​ 11,293 Warrants exercised in Q4 2019 (11,293) Warrants issued in Q4 2019 ​ 11,293 Warrants outstanding at September 30, 2020 11,293 ​ There were no warrants issued or exercised during the first nine months of 2020.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2020
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 11. - COMMITMENTS AND CONTINGENCIES License agreements and sponsored research – ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Future Commitments ​ Commitment Counter Party Product Relationship Commitment Type 2020 2021 2022 2023 2024 & After Total Research Agreement ​ KeyGene ​ Hemp / Cannabis ​ Contract fee ​ $ 230 ​ $ 1,200 ​ $ 1,200 ​ $ 1,200 ​ $ 300 ​ $ 4,130 (1) License Agreement ​ NCSU ​ Tobacco ​ Annual royalty fee ​ ​ 56 ​ ​ 225 ​ ​ 225 ​ ​ — ​ ​ — ​ ​ 506 (2), (3) License Agreement ​ NCSU ​ Tobacco ​ Minimum annual royalty ​ ​ 25 ​ ​ 25 ​ ​ 50 ​ ​ 50 ​ ​ 650 ​ ​ 800 (3) License Agreement ​ NCSU ​ Tobacco ​ Minimum annual royalty ​ ​ 50 ​ ​ 50 ​ ​ 50 ​ ​ 50 ​ ​ 550 ​ ​ 750 (3) Research Agreement ​ NCSU ​ Tobacco ​ Contract fee ​ ​ 45 ​ ​ 121 ​ ​ — ​ ​ — ​ ​ — ​ ​ 166 (4) Sublicense Agreement ​ Anandia Laboratories, Inc. ​ Hemp / Cannabis ​ Annual license fee ​ ​ 10 ​ ​ 10 ​ ​ 10 ​ ​ 10 ​ ​ 120 ​ ​ 160 (5) Growing Agreement ​ Various ​ Various ​ Contract fee ​ ​ 95 ​ ​ 25 ​ ​ — ​ ​ — ​ ​ — ​ ​ 120 (6) ​ ​ ​ ​ ​ ​ ​ ​ $ 511 ​ $ 1,656 ​ $ 1,535 ​ $ 1,310 ​ $ 1,620 ​ $ 6,632 ​ ​ (1) Exclusive agreement with the Company with respect to the Cannabis Sativa L. plant (the "Field"). The initial term of the agreement is five years with an option for an additional two years . The aggregate cost of the agreement over the initial term is $6,000 . The Company will exclusively own all results and all intellectual property relating to the results of the collaboration with KeyGene (the "Results”). The Company will pay royalties in varying amounts to KeyGene relating to the Company's commercialization in the Field of certain Results. The Company has granted KeyGene a license to commercialize the Results outside of the Field and KeyGene will pay royalties in varying amounts to the Company relating to KeyGene's commercialization outside of the Field of the Results. (2) The license agreement also requires a milestone payment of $150 upon FDA approval or clearance of a product that uses the NCSU licensed technology. The annual royalty fee is credited against running royalties on sales of licensed products. (3) The Company is also responsible for reimbursing NSCU for actual third-party patent costs incurred, including capitalized patent costs and patent maintenance costs. These costs vary from year to year and the Company has certain rights to direct the activities that result in these costs. (4) On September 11, 2020, the Company entered into a one-year Sponsored Project Agreement with NCSU for continued research of tobacco alkaloid formation. (5) The Company is also responsible for the payment of certain costs, including, capitalized patent costs and patent maintenance costs, a running royalty on future net sales of products made from the sublicensed intellectual property, and a sharing of future sublicensing consideration received from sublicensing to third parties. (6) Various R&D growing agreements for hemp / cannabis and tobacco. ​ Investment in Panacea - Modified Risk Tobacco Product Application (“MRTP Application”) Litigation Class Action On January 21, 2019, Matthew Jackson Bull, a resident of Denver, Colorado, filed a Complaint against the Company, the Company’s then Chief Executive Officer, Henry Sicignano III, and the Company’s then Chief Financial Officer, John T. Brodfuehrer, in the United States District Court for the Eastern District of New York entitled: Matthew Bull, Individually and on behalf of all others similarly situated, v. 22nd Century Group, Inc., Henry Sicignano III, and John T. Brodfuehrer Case No. 1:19-cv-00409 On January 29, 2019, Ian M. Fitch, a resident of Essex County Massachusetts, filed a Complaint against the Company, the Company’s then Chief Executive Officer, Henry Sicignano III, and the Company’s then Chief Financial Officer, John T. Brodfuehrer, in the United States District Court for the Eastern District of New York entitled: Ian Fitch, Individually and on behalf of all others similarly situated, v. 22nd Century Group, Inc., Henry Sicignano III, and John T. Brodfuehrer Case No. 2:19-cv-00553 On May 28, 2019, the plaintiff in the Fitch Bull ​ On September 16, 2019, pursuant to a joint motion by the parties, the Court in the Bull Plaintiffs in the Bull On January 29, 2020, the Company and Messrs. Sicignano and Brodfuehrer filed a Motion to Dismiss the Amended Complaint. On March 30, 2020, Plaintiffs filed a brief in opposition to the motion to dismiss. We then filed our final reply brief on April 29, 2020. On July 31, 2020, the Court heard oral arguments on our motion to dismiss and we are awaiting the Court’s decision. We believe that the claims are frivolous, meritless and that the Company and Messrs. Sicignano and Brodfuehrer have substantial legal and factual defenses to the claims. We intend to vigorously defend the Company and Messrs. Sicignano and Brodfuehrer against such claims. Shareholder Derivative Cases On February 6, 2019, Melvyn Klein, a resident of Nassau County New York, filed a shareholder derivative claim against the Company, the Company’s then Chief Executive Officer, Henry Sicignano III, the Company’s Chief Financial Officer, John T. Brodfuehrer, and each member of the Company’s Board of Directors in the United States District Court for the Eastern District of New York entitled: Melvyn Klein, derivatively on behalf of 22nd Century Group v. Henry Sicignano, III, Richard M. Sanders, Joseph Alexander Dunn, Nora B. Sullivan, James W. Cornell, John T. Brodfuehrer and 22nd Century Group, Inc Case No. 1:19-cv-00748 On February 11, 2019, Stephen Mathew filed a shareholder derivative claim against the Company, the Company’s then Chief Executive Officer, Henry Sicignano III, the Company’s Chief Financial Officer, John T. Brodfuehrer, and each member of the Company’s Board of Directors in the Supreme Court of the State of New York, County of Erie, entitled: Stephen Mathew, derivatively on behalf of 22nd Century Group, Inc. v. Henry Sicignano, III, John T. Brodfuehrer, Richard M. Sanders, Joseph Alexander Dunn, James W. Cornell, Nora B. Sullivan and 22nd Century Group, Inc., Index No. 801786/2019 Mathew Klein On June 10, 2019, Judy Rowley filed a shareholder derivative claim against the Company, the Company’s then Chief Executive Officer, Henry Sicignano III, the Company’s Chief Financial Officer, John T. Brodfuehrer, and each member of the Company’s Board of Directors in the Supreme Court of the State of New York, County of Erie, entitled: Judy Rowley, derivatively on behalf of 22nd Century Group, Inc. v. Henry Sicignano, III, Richard M. Sanders, Joseph Alexander Dunn, Nora B. Sullivan, James W. Cornell, John T. Brodfuehrer, and 22nd Century Group, Inc. Index No. 807214/2019 On January 15, 2020, Kevin Broccuto filed a shareholder derivative claim against the Company, the Company's then Chief Executive Officer, Henry Sicignano III, the Company's Chief Financial Officer, John T. Brodfuehrer, and certain members of the Company's prior Board of Directors in the District Court of the State of Nevada, County of Clark, entitled: Kevin Broccuto, derivatively on behalf of 22nd Century Group, Inc. v. James W. Cornell, Richard M. Sanders, Nora B. Sullivan, Henry Sicignano, III, and John T. Brodfuehrer, Case No. A-20-808599. On February 11, 2020, Jerry Wayne filed a shareholder derivative claim against the Company, the Company's then Chief Executive Officer, Henry Sicignano III, the Company's Chief Financial Officer, John T. Brodfuehrer, and certain members of the Company's prior Board of Directors in the District Court of the State of Nevada, County of Clark, entitled: Jerry Wayne, derivatively on behalf of 22nd Century Group, Inc. v. James W. Cornell, Richard M. Sanders, Nora B. Sullivan, Henry Sicignano, III, and John T. Brodfuehrer, Case No. A-20-808599. Mr. Wayne brings this action derivatively alleging generally the same allegations as the Brocutto case. The Complaint seeks unspecified monetary damages, corrective corporate governance actions, disgorgement of alleged profits and imposition of constructive trusts, and attorney's fees and costs. The Complaint also seeks to declare as unenforceable the Company's Bylaw requiring derivative lawsuits to be filed in Erie County, New York, where the Company is headquartered. On March 25, 2020, the Court ordered the Brocutto Wayne Shareholder Derivative Demand On February 19, 2019, the Company received a demand letter from attorneys representing Van McClendon, a shareholder of the Company, in which Mr. McClendon demanded that the Company’s Board of Directors take action to pursue certain purported causes of action on behalf of the Company to remedy alleged breaches of fiduciary duties by each of the members of the Company’s Board of Directors, the Company’s Chief Executive Officer, Henry Sicignano III, and the Company’s Chief Financial Officer, John T. Brodfuehrer. On February 28, 2019, the Board appointed a Special Committee of independent directors and instructed the Committee to assess whether pursuing the claims detailed in the demand letter would be in the best interests of the Company. Subsequently, Mr. McClendon sold his shares and withdrew his demand. On May 7, 2019, after Mr. McClendon sold his shares, the Company received a similar demand letter from attorneys representing Jeremy Houck, a shareholder of the Company. Pursuant to the Board’s instruction, the Special Committee completed an investigation of the claims detailed in Mr. Houck’s demand letter. The Special Committee determined that pursuing such claims would not be in the best interest of the Company. On February 27, 2020, the Board of Directors adopted and approved the Special Committee’s determination.

EQUITY- BASED COMPENSATION

EQUITY- BASED COMPENSATION	9 Months Ended
	Sep. 30, 2020
EQUITY- BASED COMPENSATION
EQUITY- BASED COMPENSATION	NOTE 12 – EQUITY- BASED COMPENSATION On April 12, 2014, the stockholders of the Company approved the 22nd Century Group, Inc. 2014 Omnibus Incentive Plan (the “OIP”) and the authorization of 5,000,000 shares to be reserved for issuance thereunder. On April 29, 2017, the stockholders approved an amendment to the OIP to increase the number of shares available for issuance by an additional 5,000,000 shares and on May 3, 2019, the stockholders approved an additional amendment to the OIP to increase the number of shares available for issuance by an additional 5,000,000 shares. The OIP allows for the granting of equity and cash incentive awards to eligible individuals over the life of the OIP, including the issuance of up to an aggregate of 15,000,000 shares of the Company’s common stock pursuant to awards under the OIP. The OIP has a term of ten years and is administered by the Compensation Committee of the Company’s Board of Directors to determine the various types of incentive awards that may be granted to recipients under the OIP and the number of shares of common stock to underlie each such award under the OIP. As of September 30, 2020, the Company had available 3,853,576 shares remaining for future awards under the OIP. Restricted Stock (“RSU”) ​ ​ ​ ​ ​ ​ ​ ​ Unvested RSUs ​ ​ ​ ​ Weighted ​ ​ ​ ​ Average ​ ​ Number of ​ Grant-date ​ Shares Fair Value ​ ​ in thousands ​ ​ ​ Unvested at December 31, 2019 951 ​ $ 2.15 Granted 2,797 ​ $ 0.71 Vested ​ (499) ​ $ 1.85 Forfeited ​ (371) ​ $ 1.26 Unvested at September 30, 2020 ​ 2,878 ​ $ 0.83 ​ The fair value of RSUs that vested during the nine months ended September 30, 2020 was approximately $366 based on the stock price at the time of vesting. Stock Options. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Weighted ​ Average ​ ​ ​ ​ ​ ​ ​ Average ​ Remaining ​ Aggregate ​ ​ Number of ​ Exercise ​ Contractual ​ Intrinsic ​ Options Price Term Value ​ ​ in thousands ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2019 ​ 7,837 ​ $ 1.49 ​ ​ ​ ​ ​ Forfeited ​ (101) ​ $ 2.76 ​ ​ ​ ​ ​ Expired ​ (478) ​ $ 0.74 ​ ​ ​ ​ ​ Outstanding September 30, 2020 7,259 ​ $ 1.49 3.8 years $ 14 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at September 30, 2020 6,447 ​ $ 1.49 3.1 years $ 7 ​ The intrinsic value of a stock option is the amount by which the current market value or the market value upon exercise of the underlying stock exceeds the exercise price of the option. ​ Restricted Stock and Stock Option Compensation Expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2020 2019 2020 2019 Sales, general, and administrative ​ $ 278 ​ $ 1,382 ​ $ 1,051 ​ $ 2,178 Research and Development ​ 28 ​ 58 ​ 111 ​ 228 Total restricted stock and stock option compensation ​ $ 306 ​ $ 1,440 ​ $ 1,162 ​ $ 2,406 ​ As of September 30, 2020, unrecognized compensation expense amounted to $1,821 which is expected to be recognized over a weighted average period of approximately 1.1 years. In addition, there is approximately $637 of unrecognized stock option compensation expense that requires the achievement of certain milestones which have yet to be obtained.

REVENUE RECOGNITION

REVENUE RECOGNITION	9 Months Ended
	Sep. 30, 2020
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	NOTE 13. – REVENUE RECOGNITION The Company recognizes revenue when it satisfies a performance obligation by transferring control of the product to a customer. The Company’s customer contracts consist of obligations to manufacture the customer’s branded filtered cigars and cigarettes. For certain contracts, the performance obligation is satisfied over time as the Company determines, due to contract restrictions, it does not have an alternative use of the product, and it has an enforceable right to payment as the product is manufactured. The Company recognizes revenue under those contracts at the unit price stated in the contract based on the units manufactured. Revenue from the sale of the Company’s products is recognized net of cash discounts, sales returns and allowances. There was no allowance for discounts or returns and allowances at September 30, 2020 and December 31, 2019. Contract Assets and Liabilities Unbilled receivables (contract assets) represent revenues recognized for performance obligations that have been satisfied but have not been billed. These receivables are included as Accounts receivable, net on the Consolidated Balance Sheets. Customer payment terms vary depending on the terms of each customer contract, but payment is generally due prior to product shipment or within extended credit terms up to twenty-one (21) days after shipment. Deferred Revenue (contract liabilities) relate to down payments received from customers in advance of satisfying a performance obligation. This deferred revenue is included as Deferred income on the Consolidated Balance Sheets. Total contract assets and contract liabilities are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2020 2019 Unbilled receivables $ 872 $ 406 Deferred Revenue ​ ​ — ​ ​ (5) Net contract assets ​ $ 872 ​ $ 401 ​ Disaggregation of Revenue The Company’s net sales revenue is derived from customers located primarily in the United States of America and is disaggregated by the timing of revenue recognition—net sales transferred over time and net sales transferred at a point in time. All revenue is related to contract manufacturing. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2020 2019 2020 2019 Net sales-over time ​ $ 4,339 ​ $ 3,835 ​ $ 12,769 ​ $ 11,491 ​ Net sales-point in time ​ 2,971 ​ 2,627 ​ 8,034 ​ 7,080 ​ Total Revenue ​ $ 7,310 ​ $ 6,462 ​ $ 20,803 ​ $ 18,571 ​ ​

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2020
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 14. – EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings (loss) per common share for the three and nine months ended September 30, 2020 and 2019, respectively. Outstanding warrants, options, and restricted stock units were excluded from the calculation of diluted EPS as the effect was antidilutive. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2020 2019 2020 2019 ​ ​ (in thousands, except for per-share data) Net loss ​ $ (4,221) ​ $ (10,245) ​ $ (13,307) ​ $ (20,360) Weighted average common shares outstanding - basic and diluted ​ 138,857 ​ ​ 125,420 ​ ​ 138,774 ​ ​ 124,912 Net loss per common share - basic and diluted ​ $ (0.03) ​ $ (0.08) ​ $ (0.10) ​ $ (0.16) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Anti-dilutive shares are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Warrants ​ ​ 11,293 ​ ​ 11,293 ​ ​ 11,293 ​ ​ 11,293 Options ​ ​ 7,259 ​ ​ 8,287 ​ ​ 7,259 ​ ​ 8,287 Restricted stock units ​ ​ 2,878 ​ ​ 1,051 ​ ​ 2,878 ​ ​ 1,051 ​ ​ ​ 21,430 ​ ​ 20,631 ​ ​ 21,430 ​ ​ 20,631 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

NATURE OF BUSINESS AND SUMMAR_2

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2020
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation - Operating results for the nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The balance sheet as of December 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all the information and footnotes required by GAAP for complete financial statements. These interim consolidated financial statements should be read in conjunction with the December 31, 2019 audited consolidated financial statements and the notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the Securities and Exchange Commission on March 11, 2020.
Principles of Consolidation	Principles of Consolidation -
Nature of Business	Nature of Business -
Reclassifications	Reclassifications
COVID-19	COVID-19 Pandemic Our Williamsville, NY corporate office and our R&D laboratory in Buffalo, NY remain open and are currently operating under strict safety protocols in accordance with New York State’s reopening guidelines. These protocols include physical distancing, mandatory face coverings, disinfection of surfaces, and other health and safety measures. We continue to encourage remote work arrangements by our employees where job duties permit. Our laboratory in Buffalo is working to almost full capacity while some of our external research and development partners are operating on a modified or limited schedule during this period of the pandemic. The temporary closure of our laboratory and the interruption to our workflow related to COVID-19 has had a minimum impact on our research operations. Our NASCO production facility in North Carolina remains open and, despite the pandemic, we have been able to fulfill sales orders in a timely manner. The safety and well-being of our employees remains a top priority and we to continue monitor and operate in line with local, state, and federal safety guidelines. An outbreak at our production facility, or disruption in our supply chain, could cause us to slow or temporarily cease our manufacturing operations. Our executive leadership team and staff are monitoring this evolving situation and its impacts on our business. We will continue to monitor the local, state and federal guidance regarding our business practices.
Use of Estimates	Use of Estimates -
Fair Value of Financial Instruments	Fair Value of Financial Instruments -
Investments	Investments -
Stock Based Compensation	Stock Based Compensation
Income Taxes	Income Taxes -

INVENTORY (Tables)

INVENTORY (Tables)	9 Months Ended
	Sep. 30, 2020
INVENTORY
Schedule of Inventories	​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ 2020 2019 Inventory - tobacco leaf ​ $ 1,105 ​ $ 1,178 Inventory - finished goods ​ ​ ​ ​ ​ Cigarettes and filtered cigars ​ 201 ​ 106 Inventory - raw materials ​ ​ ​ ​ Cigarette and filtered cigar components ​ ​ 1,105 ​ ​ 1,082 ​ ​ ​ ​ ​ ​ ​ Less: inventory reserve ​ (100) ​ (100) ​ ​ $ 2,311 ​ $ 2,266

MACHINERY AND EQUIPMENT (Tables

MACHINERY AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2020
MACHINERY AND EQUIPMENT
Schedule of Machinery and equipment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ Useful Life 2020 2019 Cigarette manufacturing equipment ​ 3 or 10 years ​ $ 4,892 ​ $ 4,870 Office furniture, fixtures and equipment ​ 5 Years ​ 162 ​ 152 Laboratory equipment ​ 5 Years ​ 117 ​ 125 Leasehold improvements ​ 6 Years ​ 273 ​ 257 ​ ​ ​ ​ ​ ​ ​ Less: accumulated depreciation ​ ​ (2,755) ​ (2,284) Machinery and equipment, net ​ ​ $ 2,689 ​ $ 3,120

RIGHT-OF-USE ASSETS, LEASE OB_2

RIGHT-OF-USE ASSETS, LEASE OBLIGATIONS AND OTHER LEASES (Tables)	9 Months Ended
	Sep. 30, 2020
RIGHT-OF-USE ASSETS, LEASE OBLIGATIONS, AND OTHER LEASES
Summary of discount rate and lease term	​ ​ ​ ​ ​ ​ Weighted average remaining lease term in years ​ ​ 2.3 ​ Weighted average discount rate ​ 4.8 %
Schedule of future minimum lease payments	​ ​ ​ ​ ​ 2020 ​ $ 87 2021 ​ 324 2022 ​ 92 2023 ​ ​ 88 2024 ​ 15 Total lease payments ​ 606 Less: imputed interest ​ (34) Total ​ $ 572

INVESTMENTS & CONVERTIBLE NOT_2

INVESTMENTS & CONVERTIBLE NOTE RECEIVABLE (Tables)	9 Months Ended
	Sep. 30, 2020
INVESTMENTS & CONVERTIBLE NOTE RECEIVABLE
Schedule of carrying value of investments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2020 ​ 2019 Aurora stock warrants $ 111 $ 673 Panacea preferred stock ​ ​ 5,101 ​ ​ 4,865 Panacea stock warrant ​ ​ 1,803 ​ ​ 2,865 Total Investments ​ $ 7,015 ​ $ 8,403 Convertible Note Receivable ​ $ 5,804 ​ $ 5,589

FAIR VALUE MEASUREMENTS AND S_2

FAIR VALUE MEASUREMENTS AND SHORT-TERM INVESTMENTS (Tables)	9 Months Ended
	Sep. 30, 2020
FAIR VALUE MEASUREMENTS AND SHORT-TERM INVESTMENTS
Schedule of assets and liabilities measured at fair value	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value ​ ​ September 30, 2020 ​ Level 1 Level 2 Level 3 Total Assets ​ ​ ​ ​ Short-term investment securities: ​ ​ ​ ​ Money market funds ​ $ 5,111 ​ $ — ​ $ — ​ $ 5,111 Corporate bonds ​ — ​ 20,165 ​ — ​ 20,165 Total short-term investment securities ​ $ 5,111 ​ $ 20,165 ​ $ — ​ $ 25,276 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment - Aurora stock warrants ​ $ — ​ $ — ​ $ 111 ​ $ 111 Investment - Panacea preferred stock ​ $ — ​ $ — ​ $ 5,101 ​ $ 5,101 Convertible note receivable ​ $ — ​ $ — ​ $ 5,804 ​ $ 5,804 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value ​ ​ December 31, 2019 ​ Level 1 Level 2 Level 3 Total Assets ​ ​ ​ ​ Short-term investment securities: ​ ​ ​ ​ Money market funds ​ $ 12,146 ​ $ — ​ $ — ​ $ 12,146 Corporate bonds ​ — ​ 26,331 ​ — ​ 26,331 Total short-term investment securities ​ $ 12,146 ​ $ 26,331 ​ $ — ​ $ 38,477 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment - Aurora stock warrants ​ $ — ​ $ — ​ $ 673 ​ $ 673 Investment - Panacea preferred stock ​ $ — ​ $ — ​ $ 4,865 ​ $ 4,865 Convertible note receivable ​ $ — ​ $ — ​ $ 5,589 ​ $ 5,589 ​
Schedule of the changes in fair value of Level 3 investments	​ ​ ​ ​ ​ Fair Value at December 31, 2019 ​ $ 11,127 Unrealized loss as a result of change in fair value ​ ​ (562) Accretion of interest on Panacea Investment ​ ​ 451 Fair Value at September 30, 2020 ​ $ 11,016
Schedule of available-for-sale securities reconciliation	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available for Sale Debt Securities ​ ​ September 30, 2020 ​ ​ Amortized ​ Gross ​ Gross ​ ​ ​ ​ ​ Cost ​ Unrealized ​ Unrealized ​ Fair ​ Basis Gains Losses Value Corporate bonds ​ $ 20,026 ​ $ 139 ​ $ — ​ $ 20,165 Convertible note receivable ​ 5,804 ​ — ​ — ​ 5,804 Investment - Panacea preferred stock ​ 5,101 ​ — ​ — ​ 5,101 ​ ​ $ 30,931 ​ $ 139 ​ $ — ​ $ 31,070 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available for Sale Debt Securities ​ ​ December 31, 2019 ​ ​ Amortized ​ Gross ​ Gross ​ ​ ​ ​ ​ Cost ​ Unrealized ​ Unrealized ​ Fair ​ Basis Gains Losses Value Corporate bonds ​ $ 26,324 ​ $ 64 ​ $ (57) ​ $ 26,331 Convertible note receivable ​ 5,589 ​ — ​ — ​ 5,589 Investment - Panacea preferred stock ​ 4,865 ​ — ​ — ​ 4,865 ​ ​ $ 36,778 ​ $ 64 ​ $ (57) ​ $ 36,785 ​
Schedule of available for sale securities classified by contractual maturity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available for Sale Debt Securities ​ ​ September 30, 2020 ​ December 31, 2019 ​ ​ Amortized ​ ​ ​ ​ Amortized ​ ​ ​ ​ Cost Basis Fair Value Cost Basis Fair Value Due in one year or less ​ $ 18,197 ​ $ 18,307 ​ $ 16,823 ​ $ 16,851 Due after one year through five years ​ 12,734 ​ 12,763 ​ 9,501 ​ 9,480 Due in five years ​ ​ — ​ ​ — ​ ​ 10,454 ​ ​ 10,454 ​ ​ $ 30,931 ​ $ 31,070 ​ $ 36,778 ​ $ 36,785

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2020
INTANGIBLE ASSETS
Schedule of Intangible Assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2020 2019 Intangible assets, net ​ ​ Patent and trademark costs ​ $ 5,614 ​ $ 5,712 Less: accumulated amortization ​ (2,874) ​ (2,839) Patent and trademark costs, net ​ 2,740 ​ 2,873 ​ ​ ​ ​ ​ ​ ​ License fees ​ 3,826 ​ 3,777 Less: accumulated amortization ​ (887) ​ (708) License fees, net ​ 2,939 ​ 3,069 ​ ​ ​ ​ ​ ​ ​ MSA signatory costs ​ 2,202 ​ 2,202 ​ ​ ​ ​ ​ ​ License fee for predicate cigarette brand ​ 350 ​ 350 ​ ​ $ 8,231 ​ $ 8,494

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	9 Months Ended
	Sep. 30, 2020
NOTES PAYABLE
Schedule of notes payable balances	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2020 2019 License Fees ​ $ 297 ​ $ 581 ​ D&O Insurance ​ 1,226 ​ — ​ Total current notes payable ​ $ 1,523 ​ $ 581 ​ ​ ​ ​ ​ ​ ​ Long term license fees ​ $ 292 ​ $ 292 ​

WARRANTS FOR COMMON STOCK (Tabl

WARRANTS FOR COMMON STOCK (Tables)	9 Months Ended
	Sep. 30, 2020
WARRANTS FOR COMMON STOCK
Schedule of warrant activity	​ ​ ​ ​ ​ ​ Number of ​ ​ Warrants ​ in thousands Warrants outstanding at December 31, 2018 ​ 11,293 Warrants exercised in Q4 2019 (11,293) Warrants issued in Q4 2019 ​ 11,293 Warrants outstanding at September 30, 2020 11,293

COMMITMENTS & CONTINGENCIES (Ta

COMMITMENTS & CONTINGENCIES (Tables)	9 Months Ended
	Sep. 30, 2020
COMMITMENTS AND CONTINGENCIES
Contractual Obligation, Fiscal Year Maturity [Table Text Block]	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Future Commitments ​ Commitment Counter Party Product Relationship Commitment Type 2020 2021 2022 2023 2024 & After Total Research Agreement ​ KeyGene ​ Hemp / Cannabis ​ Contract fee ​ $ 230 ​ $ 1,200 ​ $ 1,200 ​ $ 1,200 ​ $ 300 ​ $ 4,130 (1) License Agreement ​ NCSU ​ Tobacco ​ Annual royalty fee ​ ​ 56 ​ ​ 225 ​ ​ 225 ​ ​ — ​ ​ — ​ ​ 506 (2), (3) License Agreement ​ NCSU ​ Tobacco ​ Minimum annual royalty ​ ​ 25 ​ ​ 25 ​ ​ 50 ​ ​ 50 ​ ​ 650 ​ ​ 800 (3) License Agreement ​ NCSU ​ Tobacco ​ Minimum annual royalty ​ ​ 50 ​ ​ 50 ​ ​ 50 ​ ​ 50 ​ ​ 550 ​ ​ 750 (3) Research Agreement ​ NCSU ​ Tobacco ​ Contract fee ​ ​ 45 ​ ​ 121 ​ ​ — ​ ​ — ​ ​ — ​ ​ 166 (4) Sublicense Agreement ​ Anandia Laboratories, Inc. ​ Hemp / Cannabis ​ Annual license fee ​ ​ 10 ​ ​ 10 ​ ​ 10 ​ ​ 10 ​ ​ 120 ​ ​ 160 (5) Growing Agreement ​ Various ​ Various ​ Contract fee ​ ​ 95 ​ ​ 25 ​ ​ — ​ ​ — ​ ​ — ​ ​ 120 (6) ​ ​ ​ ​ ​ ​ ​ ​ $ 511 ​ $ 1,656 ​ $ 1,535 ​ $ 1,310 ​ $ 1,620 ​ $ 6,632 ​ ​ (1) Exclusive agreement with the Company with respect to the Cannabis Sativa L. plant (the "Field"). The initial term of the agreement is five years with an option for an additional two years . The aggregate cost of the agreement over the initial term is $6,000 . The Company will exclusively own all results and all intellectual property relating to the results of the collaboration with KeyGene (the "Results”). The Company will pay royalties in varying amounts to KeyGene relating to the Company's commercialization in the Field of certain Results. The Company has granted KeyGene a license to commercialize the Results outside of the Field and KeyGene will pay royalties in varying amounts to the Company relating to KeyGene's commercialization outside of the Field of the Results. (2) The license agreement also requires a milestone payment of $150 upon FDA approval or clearance of a product that uses the NCSU licensed technology. The annual royalty fee is credited against running royalties on sales of licensed products. (3) The Company is also responsible for reimbursing NSCU for actual third-party patent costs incurred, including capitalized patent costs and patent maintenance costs. These costs vary from year to year and the Company has certain rights to direct the activities that result in these costs. (4) On September 11, 2020, the Company entered into a one-year Sponsored Project Agreement with NCSU for continued research of tobacco alkaloid formation. (5) The Company is also responsible for the payment of certain costs, including, capitalized patent costs and patent maintenance costs, a running royalty on future net sales of products made from the sublicensed intellectual property, and a sharing of future sublicensing consideration received from sublicensing to third parties. (6) Various R&D growing agreements for hemp / cannabis and tobacco. ​

EQUITY- BASED COMPENSATION (Tab

EQUITY- BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2020
EQUITY- BASED COMPENSATION
Summary of changes in unvested restricted stock	​ ​ ​ ​ ​ ​ ​ ​ Unvested RSUs ​ ​ ​ ​ Weighted ​ ​ ​ ​ Average ​ ​ Number of ​ Grant-date ​ Shares Fair Value ​ ​ in thousands ​ ​ ​ Unvested at December 31, 2019 951 ​ $ 2.15 Granted 2,797 ​ $ 0.71 Vested ​ (499) ​ $ 1.85 Forfeited ​ (371) ​ $ 1.26 Unvested at September 30, 2020 ​ 2,878 ​ $ 0.83
Summary of stock option activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Weighted ​ Average ​ ​ ​ ​ ​ ​ ​ Average ​ Remaining ​ Aggregate ​ ​ Number of ​ Exercise ​ Contractual ​ Intrinsic ​ Options Price Term Value ​ ​ in thousands ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2019 ​ 7,837 ​ $ 1.49 ​ ​ ​ ​ ​ Forfeited ​ (101) ​ $ 2.76 ​ ​ ​ ​ ​ Expired ​ (478) ​ $ 0.74 ​ ​ ​ ​ ​ Outstanding September 30, 2020 7,259 ​ $ 1.49 3.8 years $ 14 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at September 30, 2020 6,447 ​ $ 1.49 3.1 years $ 7
Schedule of compensation costs related to restricted stock and stock options	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2020 2019 2020 2019 Sales, general, and administrative ​ $ 278 ​ $ 1,382 ​ $ 1,051 ​ $ 2,178 Research and Development ​ 28 ​ 58 ​ 111 ​ 228 Total restricted stock and stock option compensation ​ $ 306 ​ $ 1,440 ​ $ 1,162 ​ $ 2,406

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	9 Months Ended
	Sep. 30, 2020
Revenue from Contract with Customer [Abstract]
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block]	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2020 2019 Unbilled receivables $ 872 $ 406 Deferred Revenue ​ ​ — ​ ​ (5) Net contract assets ​ $ 872 ​ $ 401
Disaggregation of Revenue [Table Text Block]	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2020 2019 2020 2019 Net sales-over time ​ $ 4,339 ​ $ 3,835 ​ $ 12,769 ​ $ 11,491 ​ Net sales-point in time ​ 2,971 ​ 2,627 ​ 8,034 ​ 7,080 ​ Total Revenue ​ $ 7,310 ​ $ 6,462 ​ $ 20,803 ​ $ 18,571 ​

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2020
EARNINGS PER SHARE
Schedule of computation of basic and diluted earnings per common share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2020 2019 2020 2019 ​ ​ (in thousands, except for per-share data) Net loss ​ $ (4,221) ​ $ (10,245) ​ $ (13,307) ​ $ (20,360) Weighted average common shares outstanding - basic and diluted ​ 138,857 ​ ​ 125,420 ​ ​ 138,774 ​ ​ 124,912 Net loss per common share - basic and diluted ​ $ (0.03) ​ $ (0.08) ​ $ (0.10) ​ $ (0.16) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Anti-dilutive shares are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Warrants ​ ​ 11,293 ​ ​ 11,293 ​ ​ 11,293 ​ ​ 11,293 Options ​ ​ 7,259 ​ ​ 8,287 ​ ​ 7,259 ​ ​ 8,287 Restricted stock units ​ ​ 2,878 ​ ​ 1,051 ​ ​ 2,878 ​ ​ 1,051 ​ ​ ​ 21,430 ​ ​ 20,631 ​ ​ 21,430 ​ ​ 20,631 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of anti-dilutive shares excluded from dilutive securities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2020 2019 2020 2019 ​ ​ (in thousands, except for per-share data) Net loss ​ $ (4,221) ​ $ (10,245) ​ $ (13,307) ​ $ (20,360) Weighted average common shares outstanding - basic and diluted ​ 138,857 ​ ​ 125,420 ​ ​ 138,774 ​ ​ 124,912 Net loss per common share - basic and diluted ​ $ (0.03) ​ $ (0.08) ​ $ (0.10) ​ $ (0.16) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Anti-dilutive shares are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Warrants ​ ​ 11,293 ​ ​ 11,293 ​ ​ 11,293 ​ ​ 11,293 Options ​ ​ 7,259 ​ ​ 8,287 ​ ​ 7,259 ​ ​ 8,287 Restricted stock units ​ ​ 2,878 ​ ​ 1,051 ​ ​ 2,878 ​ ​ 1,051 ​ ​ ​ 21,430 ​ ​ 20,631 ​ ​ 21,430 ​ ​ 20,631 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

NATURE OF BUSINESS AND SUMMAR_3

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	9 Months Ended
	Sep. 30, 2020itemsubsidiary
Condensed Financial Statements, Captions [Line Items]
Number of subsidiaries	3
Number of line items affected by reclassifications | item	2
Twenty Second Century Ltd [Member]
Condensed Financial Statements, Captions [Line Items]
Number of subsidiaries	2

INVENTORY (Details)

INVENTORY (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Inventory [Line Items]
Inventory write-off	$ 219		$ 219	$ 882
Inventory - tobacco leaf	1,105		1,105		$ 1,178
Inventory - finished goods	201		201		106
Inventory - raw materials	1,105		1,105		1,082
Less: inventory reserve	(100)		(100)		(100)
Inventory, Net	2,311		2,311		$ 2,266
Research and Development Expense [Member]
Inventory [Line Items]
Inventory write-off	58	$ 882	58	$ 882
Cost of Sales [Member]
Inventory [Line Items]
Inventory write-off	$ 161		$ 161

MACHINERY AND EQUIPMENT (Detail

MACHINERY AND EQUIPMENT (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Less: accumulated depreciation	$ (2,755)		$ (2,755)		$ (2,284)
Machinery and equipment, net	2,689		2,689		3,120
Depreciation	160	$ 158	473	$ 440
Cigarette manufacturing equipment
Property, Plant and Equipment [Line Items]
Machinery and Equipment, Gross	4,892		$ 4,892		4,870
Cigarette manufacturing equipment | Maximum
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life			10 years
Cigarette manufacturing equipment | Minimum
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life			3 years
Office furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Machinery and Equipment, Gross	162		$ 162		152
Property, Plant and Equipment, Useful Life			5 years
Laboratory equipment
Property, Plant and Equipment [Line Items]
Machinery and Equipment, Gross	117		$ 117		125
Property, Plant and Equipment, Useful Life			5 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Machinery and Equipment, Gross	$ 273		$ 273		$ 257
Property, Plant and Equipment, Useful Life			6 years

RIGHT-OF-USE ASSETS, LEASE OB_3

RIGHT-OF-USE ASSETS, LEASE OBLIGATIONS AND OTHER LEASES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2020
RIGHT-OF-USE ASSETS, LEASE OBLIGATIONS, AND OTHER LEASES
Lease, Practical Expedient, Use of Hindsight [true false]	true
Weighted average remaining lease term in years		2 years 3 months 18 days
Weighted average discount rate		4.80%
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2020		$ 87
2021		324
2022		92
2023		88
2024		15
Total lease payments		606
Less: imputed interest		(34)
Operating Lease, Liability		$ 572

INVESTMENTS & CONVERTIBLE NOT_3

INVESTMENTS & CONVERTIBLE NOTE RECEIVABLE (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)item$ / shares	Dec. 31, 2019USD ($)	Dec. 03, 2019USD ($)
Marketable Securities [Line Items]
Investments	$ 7,015	$ 8,403
Exercise price | $ / shares	$ 1.11
Impairment of stock warrant	$ 1,062
Convertible note	5,804	5,589
Panacea preferred stock
Marketable Securities [Line Items]
Investments	$ 5,101	4,865
Dividend rate	10.00%
Investment in Panacea
Marketable Securities [Line Items]
Investments			$ 13,297
Ownership percentage (in percent)			15.80%
Number of instruments comprising the investment | item	3
Note receivable interest rate	10.00%
Note receivable term	5 years
Investment in Panacea | Warrant
Marketable Securities [Line Items]
Investments	$ 1,803	2,865
Ownership percentage (in percent)	51.00%
Exercise price | $ / shares	$ 2.344
Warrant acceleration period	2 years
Aurora Cannabis Inc [Member] | Warrant
Marketable Securities [Line Items]
Investments	$ 111	$ 673

FAIR VALUE MEASUREMENTS - Recur

FAIR VALUE MEASUREMENTS - Recurring (Details) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020USD ($)$ / shares	Dec. 31, 2019USD ($)
Money Market Funds
Assets
Net Asset Value Per Share | $ / shares	$ 1
Warrant
Assets
Estimated change in fair value due to change in input	$ 64
Warrant | Volatility
Assets
Equity Securities, FV-NI, Measurement Input	1.34	0.83
Input increase (decrease) assumption, as a percent	20.00%	20.00%
Estimated change in fair value due to change in input		$ 260
Fair Value, Recurring [Member] | Short-term Investments [Member]
Assets
Assets at fair value	$ 25,276	38,477
Fair Value, Recurring [Member] | Money Market Funds
Assets
Assets at fair value	5,111	12,146
Fair Value, Recurring [Member] | Corporate Bonds
Assets
Assets at fair value	20,165	26,331
Fair Value, Recurring [Member] | Warrant
Assets
Assets at fair value	111	673
Fair Value, Recurring [Member] | Panacea preferred stock
Assets
Assets at fair value	5,101	4,865
Fair Value, Recurring [Member] | Notes Receivable [Member]
Assets
Assets at fair value	5,804	5,589
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 | Short-term Investments [Member]
Assets
Assets at fair value	5,111	12,146
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 | Money Market Funds
Assets
Assets at fair value	5,111	12,146
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 | Corporate Bonds
Assets
Assets at fair value	0	0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 | Warrant
Assets
Assets at fair value	0	0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 | Panacea preferred stock
Assets
Assets at fair value	0	0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 | Notes Receivable [Member]
Assets
Assets at fair value	0	0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 | Short-term Investments [Member]
Assets
Assets at fair value	20,165	26,331
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 | Money Market Funds
Assets
Assets at fair value	0	0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 | Corporate Bonds
Assets
Assets at fair value	20,165	26,331
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 | Warrant
Assets
Assets at fair value	0	0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 | Panacea preferred stock
Assets
Assets at fair value	0	0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 | Notes Receivable [Member]
Assets
Assets at fair value	0	0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 | Short-term Investments [Member]
Assets
Assets at fair value	0	0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 | Money Market Funds
Assets
Assets at fair value	0	0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 | Corporate Bonds
Assets
Assets at fair value	0	0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 | Warrant
Assets
Assets at fair value	111	673
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 | Panacea preferred stock
Assets
Assets at fair value	5,101	4,865
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 | Notes Receivable [Member]
Assets
Assets at fair value	$ 5,804	$ 5,589

FAIR VALUE MEASUREMENTS - Chang

FAIR VALUE MEASUREMENTS - Changes in fair value, Level 3 (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)
FAIR VALUE MEASUREMENTS AND SHORT-TERM INVESTMENTS
Fair value at beginning of the period	$ 11,127
Unrealized loss as a result of change in fair value	(562)
Accretion of interest on Panacea investment	451
Fair value at end of the period	$ 11,016

FAIR VALUE MEASUREMENTS - Avail

FAIR VALUE MEASUREMENTS - Available-for-sale securities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities - Amortized Cost Basis	$ 30,931	$ 36,778
Available-for-sale Securities - Gross Unrealized Gains	139	64
Available-for-sale Securities - Gross Unrealized Losses	0	(57)
Available-for-sale Securities - Fair Value	31,070	36,785
Corporate Bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities - Amortized Cost Basis	20,026	26,324
Available-for-sale Securities - Gross Unrealized Gains	139	64
Available-for-sale Securities - Gross Unrealized Losses	0	(57)
Available-for-sale Securities - Fair Value	20,165	26,331
Panacea preferred stock
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities - Amortized Cost Basis	5,101	4,865
Available-for-sale Securities - Gross Unrealized Gains	0	0
Available-for-sale Securities - Gross Unrealized Losses	0	0
Available-for-sale Securities - Fair Value	5,101	4,865
Notes Receivable [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities - Amortized Cost Basis	5,804	5,589
Available-for-sale Securities - Gross Unrealized Gains	0	0
Available-for-sale Securities - Gross Unrealized Losses	0	0
Available-for-sale Securities - Fair Value	$ 5,804	$ 5,589

FAIR VALUE MEASUREMENTS - Matur

FAIR VALUE MEASUREMENTS - Maturity of available-for-sale securities by contractual maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
FAIR VALUE MEASUREMENTS AND SHORT-TERM INVESTMENTS
Available For Sale Securities Debt Maturities After One Year or Less Amortized Cost	$ 18,197	$ 16,823
Available For Sale Securities Debt Maturities After One Year Through Five Years Amortized Cost	12,734	9,501
Available For Sale Securities Debt Maturities Within Five Years Amortized Cost		10,454
Available-for-sale Securities, Amortized Cost	30,931	36,778
Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value	18,307	16,851
Available For Sale Securities Debt Maturities After One Through Five Years Fair Value	12,763	9,480
Available For Sale Securities Debt Maturities Within Five Years Fair Value		10,454
Debt Securities, Available-for-sale, Total	$ 31,070	$ 36,785

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Intangible assets, net
Intangible assets, net	$ 8,231		$ 8,231		$ 8,494
Amortization expense	163	$ 233	524	$ 671
Impairment of intangible assets	0	1,142	146	1,142
Intangible assets written off, cost		2,092	448	2,092
Intangible assets written off, accumulated amortization		$ 950	302	$ 950
Patent and Trademark [Member]
Intangible assets, net
Gross	5,614		5,614		5,712
Less: accumulated amortization	(2,874)		(2,874)		(2,839)
Total	2,740		2,740		2,873
Licensing agreements
Intangible assets, net
Gross	3,826		3,826		3,777
Less: accumulated amortization	(887)		(887)		(708)
Total	2,939		2,939		3,069
MSA Signatory Costs
Intangible assets, net
Indefinite-lived intangible assets	2,202		2,202		2,202
Licensing agreements
Intangible assets, net
Indefinite-lived intangible assets	$ 350		$ 350		$ 350

NOTES PAYABLE (Details)

NOTES PAYABLE (Details) $ in Thousands	May 01, 2020USD ($)	Oct. 22, 2018USD ($)item	Jun. 22, 2018USD ($)	Sep. 30, 2020USD ($)	Jun. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Jun. 30, 2020USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds from SBA loan	$ 1,200							$ 1,183
Directors And Officers insurance, policy term					1 year
Annual premium					$ 2,744
Premium paid					549
Proceeds from Notes Payable					$ 2,195			2,195
Debt Instrument, Term					9 months
Debt Instrument, Interest Rate, Stated Percentage					3.19%		3.19%
License fees, current				$ 297				297		$ 581
D&O insurance payable				1,226				1,226
Notes Payable, Current, Total				1,523				1,523		581
License fees, long-term				292				292		$ 292
Accretion of non cash interest expense								34	$ 33
License Agreement With NCSU Incepted June, 2018 [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Aggregate milestone payments			$ 1,200
Notes Payable			1,175
Annual milestone payments beyond upfront amount							$ 300
License acquired			$ 1,175
License Agreement With University Of Kentucky Incepted October, 2018 [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Aggregate milestone payments		$ 1,200
Notes Payable		1,151
Annual milestone payments beyond upfront amount		300
License acquired		1,151
Upfront payment		$ 300
Number of installments | item		3
Borrowings [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Accretion of non cash interest expense				$ 4		$ 7		$ 17	$ 28

SEVERANCE LIABILITY (Details)

SEVERANCE LIABILITY (Details) - USD ($) $ in Thousands	Jul. 26, 2019	Jun. 30, 2020	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Accrued severance, current			$ 423	$ 359
Accrued severance, noncurrent			294	446
Former CEO [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Severance accrual					$ 721
Monthly consulting fee to the former CEO	$ 17
Severance period	42 months
Accrued severance, current			423	359
Accrued severance, noncurrent			$ 294	$ 446
Personnel Other Than Former CEO [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Severance accrual		$ 306
Severance period		12 months

WARRANTS FOR COMMON STOCK (Deta

WARRANTS FOR COMMON STOCK (Details) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
WARRANTS FOR COMMON STOCK
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	11,293,211
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 1.11
Number Of Warrants Exercised	0	11,293,000

WARRANTS FOR COMMON STOCK - War

WARRANTS FOR COMMON STOCK - Warrant Activity (Details) - shares	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
WARRANTS FOR COMMON STOCK
Warrant outstanding beginning balance	11,293,000	11,293,000
Warrants exercised	0	(11,293,000)
Warrants issued	0	11,293,000
Warrant outstanding ending balance	11,293,000	11,293,000

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Licenses (Details) - USD ($) $ in Thousands	Sep. 11, 2020	Sep. 30, 2020
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract]
2020		$ 511
2021		1,656
2022		1,535
2023		1,310
2024 & After		1,620
Contractual Obligation, Total		6,632
Framework Collaborative Research Agreement With KeyGene [Member]
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract]
2020		230
2021		1,200
2022		1,200
2023		1,200
2024 & After		300
Contractual Obligation, Total		$ 4,130
Period of agreement		5 years
Agreement extension period		2 years
Aggregate milestone payments		$ 6,000
License Agreement With NCSU, Agreement 1
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract]
2020		56
2021		225
2022		225
Contractual Obligation, Total		506
Milestone payment upon approval of a product		150
License Agreement With NCSU, Agreement 2
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract]
2020		25
2021		25
2022		50
2023		50
2024 & After		650
Contractual Obligation, Total		800
License Agreement With NCSU, Agreement 3
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract]
2020		50
2021		50
2022		50
2023		50
2024 & After		550
Contractual Obligation, Total		750
Sponsored Research And Development Agreement With NCSU
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract]
2020		45
2021		121
Contractual Obligation, Total		166
Period of agreement	1 year
Sublicense Agreement With Anandia
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract]
2020		10
2021		10
2022		10
2023		10
2024 & After		120
Contractual Obligation, Total		160
Growing Agreement [Member]
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract]
2020		95
2021		25
Contractual Obligation, Total		$ 120

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Investment, litigation, etc. (Details) $ / shares in Units, $ in Thousands	Dec. 03, 2019USD ($)$ / sharesshares	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Jan. 15, 2020item	Nov. 19, 2019item
Other Commitments [Line Items]
Application fees		$ 4	$ 69	$ 158	$ 1,593
Investment in Panacea
Other Commitments [Line Items]
Ownership percentage (in percent)	15.80%
Amount paid to acquire investments	$ 12,000
Shares issued for Panacea, value	$ 1,297
Shares issued for Panacea, number of shares | shares	1,297,017
Additional shares to be purchased, number | shares	5,333,334
Share price | $ / shares	$ 1.875
Portion of commitment payable in cash	$ 8,500
Class Action Case Brought By Matthew Bull
Other Commitments [Line Items]
Number of counts | item							3
Shareholder Derivative Cases [Member]
Other Commitments [Line Items]
Number of counts | item						3

EQUITY-BASED COMPENSATION (Deta

EQUITY-BASED COMPENSATION (Details) - shares	May 03, 2019	Apr. 29, 2017	Sep. 30, 2020	Apr. 12, 2014
EQUITY- BASED COMPENSATION
Number of shares authorized as of date			15,000,000	5,000,000
Additional shares authorized during the period	5,000,000	5,000,000
Plan term			10 years
Number of shares remaining for future awards			3,853,576

EQUITY- BASED COMPENSATION - RS

EQUITY- BASED COMPENSATION - RSUs (Details) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)$ / sharesshares
RSUs, Number of shares
Nonvested, Number, Beginning Balance | shares	951
RSUs granted, number | shares	2,797
RSUs vested, number | shares	(499)
RSUs forfeited, number | shares	(371)
Nonvested, Number, Ending Balance | shares	2,878
RSUs, Weighted average grant-date fair value
Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares	$ 2.15
RSUs granted, grant-date fair value | $ / shares	0.71
RSUs vested, grant-date fair value | $ / shares	1.85
RSUs forfeited, grant-date fair value | $ / shares	1.26
Nonvested, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 0.83
Fair value of RSUs that vested during the period | $	$ 366

EQUITY- BASED COMPENSATION - St

EQUITY- BASED COMPENSATION - Stock option activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)$ / sharesshares
Number of Options
Options, number, Beginning of Period | shares	7,837
Options forfeited, number | shares	(101)
Options expired, number | shares	(478)
Options, number, End of Period | shares	7,259
Options exercisable, number, End of Period | shares	6,447
Options, Weighted Average Exercise Price
Options, Beginning of Period, weighted average exercise price | $ / shares	$ 1.49
Options forfeited, weighted average exercise price | $ / shares	2.76
Options expired, weighted average exercise price | $ / shares	0.74
Options, End of Period, weighted average exercise price | $ / shares	1.49
Options exercisable, End of Period, weighted average exercise price | $ / shares	$ 1.49
Weighted Average Remaining Contractual Term
Options, End of Period, weighted average remaining contractual term	3 years 9 months 18 days
Options exercisable, End of Period, weighted average remaining contractual term	3 years 1 month 6 days
Aggregate Intrinsic Value
Options, End of Period, aggregate intrinsic value | $	$ 14
Options exercisable, End of Period, aggregated intrinsic value | $	$ 7

EQUITY-BASED COMPENSATION - Com

EQUITY-BASED COMPENSATION - Compensation expense and unrecognized compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based employee compensation expense	$ 306	$ 1,440	$ 1,162	$ 2,406
Unrecognized compensation	1,821		$ 1,821
Unrecognized compensation, period for recognition			1 year 1 month 6 days
Unrecognized compensation, options with milestone-based vesting	637		$ 637
Selling, General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based employee compensation expense	278	1,382	1,051	2,178
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based employee compensation expense	$ 28	$ 58	$ 111	$ 228

REVENUE RECOGNITION (Details)

REVENUE RECOGNITION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Allowance for discounts or returns and allowances	$ 0		$ 0		$ 0
Payment period			21 days
Unbilled receivables	872		$ 872		406
Deferred revenue	0		0		(5)
Contract asset (liability), net	872		872		$ 401
Sale of products, net	7,310	$ 6,462	20,803	$ 18,571
Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Sale of products, net	4,339	3,835	12,769	11,491
Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Sale of products, net	$ 2,971	$ 2,627	$ 8,034	$ 7,080

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
EARNINGS PER SHARE
Net loss attributed to common shareholders	$ (4,221)	$ (5,057)	$ (4,029)	$ (10,245)	$ (8,042)	$ (2,073)	$ (13,307)	$ (20,360)
Weighted average common shares outstanding - basic and diluted (in thousands)	138,857			125,420			138,774	124,912
Loss per common share - basic and diluted	$ (0.03)			$ (0.08)			$ (0.10)	$ (0.16)

EARNINGS PER SHARE - Anti-dilut

EARNINGS PER SHARE - Anti-dilutive securities (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities outstanding but excluded from computation of earnings per share	21,430	20,631	21,430	20,631
Warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities outstanding but excluded from computation of earnings per share	11,293	11,293	11,293	11,293
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities outstanding but excluded from computation of earnings per share	7,259	8,287	7,259	8,287
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities outstanding but excluded from computation of earnings per share	2,878	1,051	2,878	1,051