Company Summary: Charlie’s Holdings, Inc.

Overview

• Core Business: Formulates, markets, and distributes premium nicotine-based and alternative alkaloid vapor products.
• Product Focus:
  • Non-combustible nicotine products
  • Alternative alkaloid vapor products (including synthetic compounds)
• Distribution Channels:
  • Distributors
  • Specialty Retailers
  • Third-party online resellers
  • International markets (includes UK, Italy, Spain, New Zealand, Australia, Canada)

Subsidiaries

• Charlie’s Chalk Dust, LLC: Produces and sells nicotine-based and alternative vapor products.
• Don Polly, LLC: Owned by an entity controlled by COO Ryan Stump; develops and markets proprietary alternative product offerings under licensing agreements.

Number of Employees

• As of March 31, 2025: 26 full-time employees

Revenue & Financials (2024)

• Total Revenue: Approximately $8.5 million
• Revenue Comparison (2023): $16.3 million (decreased in 2024)
• Net Loss (2024): Approximate $4.16 million
• Net Loss (2023): Approximate $2.09 million
• Operating Loss (2024): About $3.45 million
• Gross Cost of Goods Sold (2024): ~$5.6 million (66% of revenue)
• Cost of Goods Sold (2023): ~$10.2 million (62.8% of revenue)

Stock Data

• Shares Outstanding (as of May 29, 2025): 257,413,570 shares of common stock
• Stock Symbol: CHUC (OTC Markets)
• Market Value (as of June 30, 2024): Approximate $14.1 million (market price of $0.145 per share)

Business Strategy & Initiatives

• Developing proprietary products, including a nicotine substitute called Metatine™, which is not regulated as a tobacco product.
• Launch of new products such as SBX Disposables with Metatine, providing adult users with a satisfaction similar to traditional nicotine vape products.
• Ongoing efforts to obtain FDA approval for nicotine and tobacco-derived products, with over 650 PMTA submissions.
• Developing age-gating technology to prevent youth access.
• Cost reduction measures, including executive salary cuts and headcount reductions.
• Exploring international sales expansion.
• Planning to uplist from OTCQB to a national securities exchange to increase liquidity and market visibility.

Product Details

• Alternative Alkaloid Products: Metatine, sold in SBX disposable devices (5-pack, 17-25K puffs, 3 firing modes).
• Disposable Vapes: Under brands Pacha, Pachamama, and SBX, ranging from 2mL to 20mL sizes, with options for synthetic or tobacco-derived nicotine, flavored or non-flavored.
• E-liquids: Proprietary blends in flavors like passion fruit, raspberry, yuzu, blood orange, banana, gooseberry, huckleberry, and pear acai, priced for open system vaporizers.
• Nicotine Salt Products: High-concentration (25mg, 50mg) nicotine salts, for lower wattage devices.

Regulatory Environment

• Affected by US FDA regulations, including PMTA requirements.
• Non-nicotine SBX devices are positioned as non-tobacco products to avoid FDA regulation.
• The company actively manages compliance with evolving laws, including flavor bans and age restrictions.
• Significant investments (~$6.5 million) in FDA regulatory applications (PMTAs).
• Currently awaiting FDA marketing orders for many applications, with ongoing appeals and applications.

Employees & Management

• Key personnel include:
  • Henry Sicignano III (President & CEO)
  • Matthew P. Montesano (CFO & Interim)
  • Ryan Stump (COO & Director)
  • Additional directors including Scot Cohen, Jeffrey Fox, Edward Carmines, and Michael King.

This summary provides a detailed overview of Charlie’s Holdings, Inc., including its operations, product offerings, revenue, employee count, and strategic initiatives based solely on the provided documents.