Company: CHUC
Filing Date: 2025-07-03
Form Type: DEFR14A
Source: 0001437749-25-022145
Chunk: 20

Company: Charlie's Holdings, Inc.
Filing Date: 2025-07-03
Form: DEFR14A
Chunk 20
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 is intended to provide a fixed component of compensation reflecting the executive’s skill set, experience, role, and responsibilities.

In December 2022 Henry Sicignano, Matt Montesano, and Ryan Stump voluntarily reduced their base salaries on a temporary basis. The 2023 reduced base salaries for Henry Sicignano, Matt Montesano and Ryan Stump were $220,000, $217,800 and $255,000, respectively. In January 2023, Mr. Stump and Mr. Sicignano elected to reduce their salaries further, on a temporary basis, resulting in total reductions of 25% and 20%, to $225,000 and $200,000 respectively. On February 10, 2023, Mr. Montesano notified the Company that he has resigned to pursue other opportunities, but will remain interim CFO, indefinitely, at a reduced salary of $100,000 annually.

Cash Bonus

During the year ended December 31, 2024, the Company did not award annual cash bonuses to any executive. During the year ended December 31, 2023, the Company did not award annual cash bonuses to any executive. However, cash payments were issued to certain executives in relation to income tax liabilities generated from the issuance of restricted stock awards granted in 2023.

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Equity Compensation

During the year ended December 31, 2024, the Company did not award any restricted shares (“RSAs”) to any executive of the Company. During the year ended December 31, 2023, the Company granted approximately 9,100,000 restricted shares (subject to forfeiture) to employees, officers, directors and key stakeholders of the Company pursuant to the Charlie’s Holdings, Inc. 2019 Omnibus Incentive Plan (the “2019 Plan”), as amended. The RSAs are subject to a vesting schedule and have all the rights of a shareholder of the Company with respect to voting, share adjustments, receipt of dividends (if any) and distributions (if any) on such shares. The total number of RSAs issued to officers and directors was 6,700,000. The RSAs granted to officers during 2023 vest in two equal annual installments, subject to continued service with us. The RSAs granted to directors during 2023 vest in two equal annual installments, subject to continued service with us.

Notwithstanding any of the foregoing, all the restricted shares shall automatically accelerate upon a