Company: CHUC
Filing Date: 2025-08-21
Form Type: 10-Q
Source: 0001437749-25-027482
Chunk: 35

Company: Charlie's Holdings, Inc.
Filing Date: 2025-08-21
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 for the six months ended June 30, ...  

Income Taxes Provision

For the six months ended June 30, 2025, the Company recorded an income tax provision of approximately $426,000.

Net Income (Loss)

For the six months ended June 30, 2025, we incurred a net income of $3,744,000 as compared to a net loss of $2,012,000 for the same period in 2024.

Effects of Inflation

Inflation has not had a material impact on our business.

Liquidity and Capital Resources

As of June 30, 2025, we had working capital of approximately $2,211,000, which consisted of current assets of approximately $5,846,000 and current liabilities of approximately $3,635,000, as compared to working capital deficit of approximately $1,855,000 at December 31, 2024. The current liabilities include approximately $2,591,000 of accounts payable and accrued expenses, notes payable notes payable from related parties of $675,000, and approximately $369,000 of deferred revenue associated with product shipped but not yet received by customers.

24

Our cash and cash equivalents balance at June 30, 2025 was approximately $1,453,000. As of June 30, 2025, we have the following notes outstanding:

  July 2023 Notes. As of June 30, 2025, $336,000 notes payable plus accrued interest held by Ryan Stump and Henry Sicignano III remained outstanding and the maturity dates of the outstanding note...  
  April 2022 Note. As of June 30, 2025, approximately $339,000 of principal plus accrued interest held by Michael King (the “ Lender”) remained outstanding and the maturity dates of the outstandi...  
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For the six months ended June 30, 2025, net cash used in operating activities was approximately $3,063,000, resulting from a net income of $3,744,000, and offset by a change in net non-cash activity of $5,870,000 and operating assets and liabilities of $937,000. For the six months ended June 30, 2024, net cash used in operating activities was approximately $300,000, resulting from a net loss