Company: CHUC
Filing Date: 2025-08-21
Form Type: 10-Q
Source: 0001437749-25-027482
Chunk: 32

Company: Charlie's Holdings, Inc.
Filing Date: 2025-08-21
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 $125,000 as compared to approximately $117,000 for the same period in 2024, which were generally consistent compared to the same period in 2024. The Company continues to evaluate its spending on advertising, promotional and tradeshow related expenses as it aims to increase sales of its new SBX Disposable vapor products.

Research and Development Expense

For the three months ended June 30, 2025, total research and development expense was approximately $4,000 as compared to an income of $26,000 for the same period in 2024. The income in 2024 period was primarily due to a vendor refund of approximately $26,000.

Income (Loss) from Operations

We incurred a loss from operations of approximately $877,000 for the three months ended June 30, 2025, compared to a loss of approximately $736,000 for the three months ended June 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 three months ended June 30, 2025, we recorded a $6,500,000 gain related to the sales agreement entered with R. J. Reynolds Vapor Company.  

  Interest Expense. For the three months ended June 30, 2025, and 2024, we recorded interest expense related to notes payable of approximately $335,000 and $156,000, respectively. The increase wa...  
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  Debt Extinguishment Gain (Loss). For the three months ended June 30, 2025, we recorded approximately $99,000 in gain from amendment to the Pinnacle Receivables Financing Agreement (see Note 9).  

Income Taxes Provision

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

Net Income (Loss)

For the three months ended June 30, 2025, we incurred a net income of $4,961,000 as compared to a net loss of $967,000 for the same period in 2024.

Results of Operations for the Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024

Regarding results from operations for the six months ended