Company News

August 23, 2023

Today, JLI is announcing a company restructuring aimed at reducing our operating costs and positioning us to continue to advance our mission during a period of regulatory and marketplace uncertainty. The principal aim of this restructuring is to enable us to maximize profitability and cash-flow generation, while continuing to invest in our core priorities, which include delivery of high quality products to our commercial partners, ongoing development of next generation products, engagement with FDA regarding our pending and possible future market authorization applications, and commercial growth consistent with compliance with all applicable laws and regulations. To deliver on this strategy, we will be substantially reducing our headcount and, unfortunately, saying goodbye to a number of highly valued team members who have made tremendous contributions to the mission. 

With these operating cost reductions, JLI is positioned to increase our adjusted EBITDA margins and generate meaningful free cash flow before litigation settlements. In doing so, we will reduce our need to access capital pre-PMTA, extend our time horizon to continue our pursuit of market orders from FDA and generate positive equity value as we pay down liabilities over time. As difficult as this moment is, we remain fundamentally optimistic about the prospects for JLI – a view rooted in our belief that our technology and our pipeline of new innovations represent the most valuable ever brought forward to transition adult smokers away from cigarettes while combating underage use.