Company: CHUC
Filing Date: 2025-06-27
Form Type: 10-Q
Source: 0001437749-25-021440
Chunk: 0

Company: Charlie's Holdings, Inc.
Filing Date: 2025-06-27
Form: 10-Q
Item: Part I, Item 1
Chunk 0
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  Proceeds from issuance of notes payable to related party                                                      100                    500  
  Repayment of notes payable                                                                                  ( 325                  ( 230  
  Repayment of notes payable to related party                                                                  ( 11                   ( 30  
  Net cash provided by financing activities                                                                     310                    240  
  Net decrease in cash                                                                                         ( 99                  ( 191  
  Cash, beginning of the period                                                                                 211                    367  
  Cash, end of the period                                                   $                                   112      $             176  
  Supplemental disclosure of cash flow information                                                                                          
  Cash paid for interest                                                    $                                     2      $               2  
  Cash paid for interest to related party                                   $                                    21      $              53  
  Cash paid for income taxes                                                $                                     -      $               -  
  Supplemental disclosure of cash flow information                                                                                          
  Conversion of Series A convertible preferred stock                        $                                     -      $               2  
  Exchange accounts payable with a note payable                             $                                   495      $               -  

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

CHARLIE'S HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1 - DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION

Description of the Business

Charlie’s Holdings, Inc., a Nevada corporation, together with its wholly owned subsidiaries and consolidated variable interest entity (collectively, the “ Company”), currently formulates, markets and distributes premium, non-combustible nicotine-related products and alternative alkaloid vapor products. The Company’s products are produced through contract manufacturers for sale by select distributors, specialty retailers, and third-party online resellers throughout the United States, as well as in six primary countries worldwide.

Charlie’s Chalk Dust, LLC (“ Charlie’ s” or “ CCD”), is the Company’s wholly owned subsidiary which produces and sells nicotine-based and alternative alkaloid vapor products. Don Polly is a consolidated variable interest entity, for which the Company is the primary beneficiary, which develops, markets and distributes other alternative products.

The Company's common stock, par value $0.001per share (the “ Common Stock”), trades under the symbol "CHUC" on the OTCQB Venture Market.

Substantial Doubt to Continue as a Going Concern Regarding the Legal and Regulatory Environment, Liquidity and Management’ s Plan of Operation

The accompanying consolidated financial statements have been prepared