Company: CHUC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001437749-25-035731
Chunk: 32

Company: Charlie's Holdings, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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ACHA synthetic product and related asset (the “ August Additional Assets”) that are covered by a PMTAfirst submitted by the Company in 2022, bringing the total purchased by the Buyer to sixteen. The purchase price for the August Additional Assets was $1.0 million paid at closing.

21

$2.0 Million Credit Facility with Independent Board Member

In order to facilitate increased SBX inventory purchases and to fuel the Company's growth in the mass market convenience store channel, on August 26, 2025 the Company announced that, it signed a very favorable $2 million credit facility with Michael D. King, one of the independent members of Charlie's Board of Directors.

Mr. King agreed to loan the Company up to $2,000,000 (in three separate tranches) at an interest rate of 13% for a period of 12 months per tranche, with a balloon payment for interest and principal to be paid at the one-year anniversary of each tranche. Accordingly, with an initial $1 million loan, and two subsequent $500,000 tranches, this debt/credit facility gave the Company the discretion to borrow funds, as needed, as demand continues to grow for the SBX product line. This credit facility is not convertible to equity, does not include warrants, and is exceptionally "company friendly."

Results of Operations for the Three Months Ended September 30, 2025 Compared to the Three Months Ended September 30, 2024

Regarding results from operations for the quarter ended September 30, 2025, we generated revenue of approximately $7,084,000, as compared to revenue of $1,624,000 for the three months ended September 30, 2024. This $5,460,000 increase in revenue was due primarily to an increase of $4,683,000 in sales of nicotine and nicotine alternative products and $777,000 in other alternative products distributed through Don Polly.

We generated a net income for the three months ended September 30, 2025, of approximately $624,000 as compared to a net loss of $1,022,000 for the three months ended September 30, 2024.

A review of the three-month period ended September 30, 2025, follows:

                                                       For the three months ended                                                                      
                                                       September 30,                                                    Change                         
                                                       2025                                       2024                  Amount                         
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