Company: CHUC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001437749-25-035731
Chunk: 36

Company: Charlie's Holdings, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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. The income in 2024 period was primarily due to a vendor refund of approximately $26,000.

Income (Loss) from Operations

We incurred loss from operations of approximately $2,042,000 for the nine months ended September 30, 2025, compared to a loss of approximately $2,553,000 for the nine months ended September 30, 2024, due primarily to decreased sales and gross profit. Net income (loss) is determined by adjusting loss from operations by the following items:

  Gain on sale of PMTA assets. For the nine months ended September 30, 2025, we recorded a $7,500,000 gain related to the sales agreement entered with R. J. Reynolds Vapor Company.  

  Interest Expense. For the nine months ended September 30, 2025, and 2024, we recorded interest expense related to notes payable of approximately $614,000 and $485,000, respectively. The increas...  
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  Debt Extinguishment Loss. For the nine months ended September 30, 2025 and 2024, we recorded approximately $50,000 and $75,000 debt extinguishment loss related to various debt amendments, respe...  
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  Change in Fair Value of Derivative Liabilities. For the nine months ended September 30, 2024, the gain in fair value of derivative liabilities was $79,000. The gain for the nine months ended Se...  

Income Taxes Provision

For the nine months ended September 30, 2025, the Company recorded an income tax provision of approximately $426,000.

Net Income (Loss)

For the nine months ended September 30, 2025, we incurred a net income of $4,368,000 as compared to a net loss of $3,034,000 for the same period in 2024.

Effects of Inflation

Inflation has not had a material impact on our business.

Liquidity and Capital Resources

As of September 30, 2025, we had working capital of approximately $3,079,000, which consisted of current assets of approximately $9,841,000 and current liabilities of approximately $6