Company: CHUC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001437749-25-035731
Chunk: 17

Company: Charlie's Holdings, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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5 (all share amounts are in thousands):

                                       Number of Shares      Weighted Average             
  Nonvested at January 1, 2025                    5,630      $                     0.054  
  Restricted stock granted                        3,200                            0.027  
  Vested                                        ( 2,730                            -      
  Forfeited                                        ( 83                            -      
  Nonvested at September 30, 2025                 6,017      $                     0.054  

During the nine months ended September 30, 2025, the Company granted3,200,000restricted stock awards (“ RSAs”) to employees of the Company pursuant to the 2019 Plan, as amended. The RSAs are subject to a vesting schedule and have all the rights of a shareholder of the Company with respect to voting, share adjustments, receipt of dividends (if any) and distributions (if any) on such shares. The grant date fair value was approximately $126,000. During the nine months ended September 30, 2025, approximately83,000RSAs issued to employees were forfeited.

As of September 30, 2025, there was approximately $153,000of total unrecognized compensation expense related to non-vested restricted share-based compensation arrangements granted under the 2019 Plan, as amended. That cost is expected to be recognized over a weighted average period of2.85years. The Company recorded total stock-based compensation of approximately $133,000and $173,000during the nine months ended September 30, 2025 and 2024 related to the RSAs, respectively.

NOTE 13 - COMMITMENTS AND CONTINGENCIES

Leases

The Company leases office space under agreements classified as operating leases that expire on various dates through 2024. All of the Company’s lease liabilities result from the lease of its headquarters in Costa Mesa, California, which expired on September 30, 2024, and effective October 1, 2024, the lease will be on a month-to-month basis, and its warehouse in Huntington Beach, California, which was renewed in May 2022 and expires May 2025. On April 29, 2022, the Company entered into a commercial lease agreement for the Company’s sales and marketing operations in Williamsville, New York (“ Williamsville Lease”) with Henry Sicignano Jr., a relative of the Company’s President, Henry Sicignano III. The Williamsville Lease, which