Company: CHUC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001437749-25-035731
Chunk: 8

Company: Charlie's Holdings, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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 2025 and 2024, purchases from fivevendors represented77% and67%, respectively, of total inventory purchases.

As of September 30, 2025, and December 31, 2024, amounts owed to these vendors totaled $1,210,000and $539,000respectively, which are included in accounts payable and accrued expenses in the accompanying condensed consolidated balance sheets.

Accounts Receivable

The Company’s concentration of accounts receivable is as follows:

                  September 30, 2025              December 31, 2024          
                  Amount                          Amount                     
 ─────────────────────────────────────────────────────────────────────────────
  Customer A      $52,000                 4       $125,000               31  
  Customer B      $106,000                9       $52,000                13  
  Customer C      -                       -       $85,000                21  
  Customer D      -                       -       $66,000                16  
  Customer E      $145,000                12      -                      -   
  Customer F      $134,000                11      -                      -   

Fourcustomers made up more than36% of net accounts receivable at September 30, 2025. Fourcustomers made up more than81% of net accounts receivable at December 31, 2024. No customer exceeded 10% of total net sales for the three and nine month periods ended September 30, 2025 and 2024, respectively.

NOTE 7 - DON POLLY, LLC

Don Polly is a Nevada limited liability company that is owned by entities controlled by Ryan Stump, a current executive officer of the Company, respectively, and a consolidated variable interest for which the Company is the primary beneficiary. Don Polly markets and distributes third-party product lines.

Don Polly is classified as a variable interest entity (“ VIE”) for which the Company is the primary beneficiary. Under ASC 810-10-15, Variable Interest Entities, a VIE is an entity that: (1) has an insufficient amount of equity investment at risk to permit the entity to finance its activities without additional subordinated financial support by other parties; (2) the equity investors are unable to make significant decisions about the entity’s activities through voting rights or similar rights; or (3) the equity investors do not have the obligation to absorb expected losses or the right to receive residual returns of the entity. The Company is required to consolidate a VIE if it is determined