Company: CHUC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001437749-25-035731
Chunk: 0

Company: Charlie's Holdings, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 0
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111                   ( 50  
  Net cash (used in) provided by financing activities                                                        ( 389                  1,478  
  Net increase in cash                                                                                         939                    234  
  Cash, beginning of the period                                                                                211                    367  
  Cash, end of the period                                                   $                                1,150      $             601  
  Supplemental disclosure of cash flow information                                                                                         
  Cash paid for interest                                                    $                                   30      $              59  
  Cash paid for interest to related party                                   $                                   45      $              98  
  Supplemental disclosure of cash flow information                                                                                         
  Conversion of Series A convertible preferred stock                        $                                    6      $               -  
  Exchange accounts payable with a note payable and warrants                $                                  495      $               -  
  Issuance of common shares from debt redemption                            $                                    -      $             676  
  Issuance of warrant for settlement of accounts payable                    $                                  148      $               -  
  Warrants exercised for vendor credit                                      $                                  370      $               -  
  Right-of-use asset recognized in exchange for lease liability             $                                  583      $               -  

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 nine primary countries worldwide. In Q4 2025 the Company intends to begin manufacturing certain of its products in a Company operated facility located in the United States.

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. In October 2025, the Company’s Board of Directors unanimously approved a resolution