Company: CHUC
Filing Date: 2025-08-21
Form Type: 10-Q
Source: 0001437749-25-027482
Chunk: 33

Company: Charlie's Holdings, Inc.
Filing Date: 2025-08-21
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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6,500        100.0  
  Total other income (loss)                                                           5,873                  (335                  6,208      -1853.1  
  Income (loss) before provision for income taxes                                     4,170                (2,012                  6,182       -307.3  
  Income tax provision                                                                 (426                     -                   (426          100  
  Net income (loss)                                    $                              3,744      $         (2,012      $           5,756       -286.1  

23

Revenue

Revenue for the six months ended June 30, 2025, decreased by approximately $244,000 or 4.8%, to approximately $4,850,000, as compared to approximately $5,094,000 for same period in 2024 due primarily to a decrease of $1,453,000 in sales of our nicotine-based vapor products, and offset by an increase of $1,209,000 in sales of other alternative products distributed through Don Polly. The increase in alternative products primarily consisted of products distributed through Don Polly on behalf of other brands. These partnerships have allowed us to leverage existing customer relationships and sales infrastructure to generate incremental revenue, but are not a primary focus for the Company.

Cost of Revenue

Cost of revenue, which consists of direct costs of materials, direct labor, third party subcontractor services, and other overhead costs increased by approximately $286,000 or 8.5%, to approximately $3,658,000, or 75.4% of revenue, for the six months ended June 30, 2025, as compared to approximately $3,372,000, or 66.2% of revenue, for the same period in 2024. This cost, as a percent of revenue, increased compared to last year due a combination of lower fixed cost absorption resulting from reduced sales performance as well as overall margin compression across most product categories.

General and Administrative Expenses

For the six months ended June 30, 2025, total general and administrative expenses decreased by approximately $422,000 to $2,546,000 as compared to approximately $2,968,000 for the same period in 2024. This change was primarily due to decreases of approximately $359,000 in certain professional fees and $85,000 of other general and administrative costs, and offset by an increase of $22,000 in non-sales related payroll and benefits costs. The decrease in professional