Company: CHUC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001437749-25-035731
Chunk: 15

Company: Charlie's Holdings, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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562,715                242,568,389                                     276,030,645      230,763,079  
  Basic earnings (loss) per share                    $                                      0.00      $                0.00      $                                     0.02           ( 0.01  
  Diluted earnings (loss) per share                  $                                      0.00      $                0.00      $                                     0.02           ( 0.01  

The following securities were not included in the diluted net income (loss) per share calculation because their effect was anti-dilutive as of the periods presented (in thousands):

                                             For the nine months ended                                   
                                             September 30,                                               
                                             2025                                      2024              
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────
  Options                                                                   4,648                 4,648  
  Series A convertible preferred shares                                     -                    28,588  
  Total                                                                     4,648                33,236  

All common stock options outstanding as of September 30, 2025 were out of the money and were not included in net earnings per share calculation.

NOTE 11 - STOCKHOLDERS’EQUITY

Conversion of Series A Preferred Shares

During the nine months ended September 30, 2025, the Company issued approximately6,465,000shares of Common Stock upon conversion of28,652shares of Series A Preferred.

Common Stock Warrants

On January 7, 2025, the Company issued3,700,000warrants (the “ Warrants”) along with a promissory note to a third-party vendor (the “ Vendor”) to settle the outstanding accounts payable. Each warrant entitles the holder to purchase one share of the Company’s common stock at an exercise price of $0.10per share. The warrants vest immediately, and are exercisable through December 30, 2027, and are subject to the terms and conditions of the warrant agreement.

On September 24, 2025, the Vendor exercised the Warrants entirely. The Vendor issued the Company a $370,000vendor credit as the purchase price consideration for the warrant exercise. The Company recognized the $370,000vendor credit in prepaid expenses and other current assets on the consolidated balance sheet as of September 30, 2025.

The fair value of the warrants on the issuance date was $148,000and was determined using the Black-Scholes option pricing model with