Company: CHUC
Filing Date: 2025-08-21
Form Type: 10-Q
Source: 0001437749-25-027482
Chunk: 19

Company: Charlie's Holdings, Inc.
Filing Date: 2025-08-21
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 was approximately $138,000and $138,000, respectively.

Effective June 1, 2022, the Company’s lease at 5331 Production Drive, Huntington Beach, CA was renewed for an additional three-year term, concluding May 31, 2025. The Company is currently operating in this facility on a month to month basis and is working with the landlord to renew the lease.

At June 30, 2025, the Company had no operating lease liabilities in the condensed consolidated balance sheet. All leases were accounted as short-term lease.

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

                                     For the three months ended                                  For the six months ended                    
                                     June 30,                                                    June 30,                                    
                                     2025                                     2024               2025                                        
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Operating leases                                                                                                                           
  Operating lease cost               $                                29      $         113      $                              73      225  
  Variable lease cost                                                  -                  -                                      -        -  
  Operating lease expense                                             29                113                                     73      225  
  Short-term lease rent expense                                       89                  5                                    163       10  
  Total rent expense                 $                               118      $         118      $                             236      235  

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

                                                                           For the six months ended                                
                                                                           June 30,                                                
                                                                           2025                                    2024            
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Operating cash flows from operating leases                               $                             30        $          226  
  Weighted-average remaining lease term – operating leases (in years)                                    -                   0.74  
  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 in which any of our directors, executive officers or affiliates, or any registered or beneficial stockholder, is an adverse party or has a material interest adverse to our interest. From time to time, the Company may be