Company: CHUC
Filing Date: 2025-06-27
Form Type: 10-Q
Source: 0001437749-25-021440
Chunk: 9

Company: Charlie's Holdings, Inc.
Filing Date: 2025-06-27
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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  Customer A      31,000                          18      -                               -   
  Customer B      23,000                          14      -                               -   
  Customer C      21,000                          13      -                               -   
  Customer D      21,000                          12      -                               -   
  Customer E      20,000                          12      -                               -   
  Customer F      -                               -       129,000                         35  
  Customer G      -                               -       81,000                          22  
  Customer H      -                               -       54,000                          15  

Fivecustomers made up more than69% of net accounts receivable at March 31, 2025. Threecustomers made up more than72% of net accounts receivable at March 31, 2024. No customer exceeded 10% of total net sales for the three-month periods ended March 31, 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 formulates, sells and distributes the Company’s hemp-derived 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 to be the primary beneficiary, that is, the enterprise has both (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (2) the obligation to absorb losses of the entity that could potentially be significant to the VIE. The Company evaluates its relationships with a VIE to determine whether it is the primary beneficiary of a VIE at the time it becomes involved with the entity and it re