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

Company: Charlie's Holdings, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 Drive, Huntington Beach, CA was renewed for an additional three-year term, concluding May 31, 2025. On August 12, 2025, the Company renewed this lease for an additional three years commencing on September 1, 2025 and ending August 31, 2028. The renewal resulted in an additional $583,000in right-of-use assets and $583,000in lease liabilities.

At September 30, 2025, the Company had operating lease liabilities of approximately $570,000and right of use assets of approximately $569,000which were included in the condensed consolidated balance sheet.

The following table summarizes quantitative information about the Company’s operating leases for the three and nine months ended September 30, 2025 and 2024 (amounts in thousands):

                                     For the three months ended                                  For the nine months ended                    
                                     September 30,                                               September 30,                                
                                     2025                                     2024               2025                                         
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Operating leases                                                                                                                            
  Operating lease cost               $                                19      $         113      $                               73      338  
  Variable lease cost                                                  -                  -                                       -        -  
  Operating lease expense                                             19                113                                      73      338  
  Short-term lease rent expense                                      104                  5                                     163       15  
  Total rent expense                 $                               123      $         118      $                              236      353  

Maturities of our operating leases as of September 30, 2025, excluding short-term leases, are as follows (amounts in thousands):

                                                                           For the nine months ended                                
                                                                           September 30,                                            
                                                                           2025                                     2024            
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Right of use assets exchanged for new operating lease liabilities        $                               583      $            -  
  Operating cash flows from operating leases                               $                                93      $          340  
  Weighted-average remaining lease term – operating leases (in years)                                     2.92                0.26  
  Weighted-average discount rate – operating leases                                                       12.0                12.0  

Legal Proceedings

As of the date hereof, the Company is not a party to any material legal or administrative proceedings. There are no proceedings