Company: CHUC
Filing Date: 2025-08-21
Form Type: 10-Q
Source: 0001437749-25-027482
Chunk: 10

Company: Charlie's Holdings, Inc.
Filing Date: 2025-08-21
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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                              2025                     2024                     
 ────────────────────────────────────────────────────────────────────────────────
  Accounts payable            $             1,348      $                 2,131  
  Accrued compensation                        563                          555  
  Accrued income taxes                        554                          128  
  Customer deposits                            71                          106  
  Other accrued expenses                       55                          476  
                              $             2,591      $                 3,396  

NOTE 9 - NOTES PAYABLE

February 2025 Short-Term Loan - Related Party

On February 27, 2025, the Company entered into a two-month short-term loan agreement (the “ Loan”) with the Company’s President, Henry Sicignano III for principal amount of $100,000which bears interest at the rate of10% per annum. The Loan was fully repaid in April 2025.

January 2025 Chemular Secured Promissory Note

On January 7, 2025, the Company issued a secured promissory note (“ Chemular Note”) to one of its vendors Chemular, Inc. (“ Chemular”) to settle the outstanding accounts payable of $495,000, in the principal amount of $370,000which bears interest at the rate of10% per annum. Commencing on January 15, 2025 and continuing on the first (1st) day and the fifteenth (15th) day of each month thereafter until June 15, 2025, (the “ Maturity Date”), the Company shall pay $10,000in accordance with the repayment schedule. The Company also issued3,700,000warrants (“ Chemular Warrants”) to Chemular in conjunction with the Chemular Note. The fair value of the Chemular Warrants was $148,000as of the issuance date (see Note 11). As a result, the Company recognized a debt extinguishment loss of $23,000during the three months ended June 30, 2025.

As part of the closing of the Asset Purchase Agreement on April 16, 2025, R. J. Reynolds Vapor Company wired directly to Chemular approximately $319,000to satisfy the Chemular Note in full.

September 2024 and January 2025 Pinnacle Receivables Financing

On September 6, 2024, the Company entered into a future receivables sale agreement (“ Pinnacle Receivables Financing Agreement”) with