Company: CHUC
Filing Date: 2025-06-27
Form Type: 10-Q
Source: 0001437749-25-021440
Chunk: 8

Company: Charlie's Holdings, Inc.
Filing Date: 2025-06-27
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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 reserves                     ( 1,182                        ( 999  
  Total                         $                2,631      $                 2,667  

NOTE 5 - PROPERTY AND EQUIPMENT

Depreciation and amortization expense totaled $13,000and $37,000, respectively, during the nine months ended March 31, 2025 and 2024. Property and equipment as of March 31, 2025 and December 31, 2024, are as follows (dollar amounts in thousands):

                                March 31,                 December 31,                                                                
                                2025                      2024                         Estimated Useful Life                          
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Machinery and equipment       $                 41      $                    41      5 years                                        
  Trade show booth                               202                          202      5 years                                        
  Office equipment                               539                          539      5 years                                        
  Leasehold improvements                         254                          254      Lesser of lease term or estimated useful life  
                                               1,036                        1,036                                                     
  Accumulated depreciation                     ( 996                        ( 983                                                     
                                $                 40      $                    53                                                     

NOTE 6 - CONCENTRATIONS

Vendors

The Company’s concentration of inventory purchases is as follows:

                For the three months                  
                                                      
                     ended March 31,                  
                                2025                  
 ──────────────────────────────────────────────────────
  Vendor A                                35      21  
  Vendor B                                16      -   
  Vendor C                                14      12  
  Vendor D                                11      -   
  Vendor E                                -       23  
  Vendor F                                -       16  

During the three months ended March 31, 2025 and 2024, purchases from fourvendors represented76% and72%, respectively, of total inventory purchases.

As of March 31, 2025, and December 31, 2024, amounts owed to these vendors totaled $270,000and $539,000respectively, which are included in accounts payable and accrued expenses in the accompanying condensed consolidated balance sheets.

Accounts Receivable

The Company’s concentration of accounts receivable is as follows:

                  For the three months ended              For the three months ended          
                  March 31, 2025                          March 31, 2024                      
                  Amount                                  Amount                              
 ─────────────────────────