First Profitable Quarter Since Q2 2023
COSTA MESA, CA / ACCESS Newswire / August 21, 2025 / Charlie's Holdings, Inc. (OTCQB:CHUC) ("Charlie's" or the "Company"), an industry leader in the premium vapor products space, today reported results for the three months ended June 30, 2025, and provided an update on recent business highlights.
Key Financial Highlights for Q2 2025 (compared with Q2 2024)
Not including $6.5 million income from PMTA asset sales, revenue increased 25% to $2.5 million
Net income of $5.0 million, from a loss of $1.0 million
EPS of $0.02, from a loss of $0.01
$2.8 million reduction in Notes Payable for the six months ended June 30, 2025
Recent Business Highlights
Successful SBX introduction in 6 strategically advantaged states; roll-out planned for multiple regional convenience store chains in Q3 and Q4 2025
Initial PMTA Products Strategic Partnerships generated $6.5 million of income with an additional $4.2 million in contingent payments possible over the next 12 months (imputed value of CHUC's 679 remaining PMTA products is more than $650 million)
Company plans to open US manufacturing facility in Q4 2025 for filling of select product lines
Age-gating technology in development to prevent youth access to nicotine vapor products
Upgraded sales team from a solely account management-centric team to a skilled and driven sales team to acquire new customers while maintaining excellent service with our existing customers
Subsequent Event
On August 8, 2025, the Company entered into and closed on an additional PMTA asset sale for one additional PACHA synthetic product and related asset, bringing the total PMTA Products purchased by the buyer to sixteen. The purchase price for this latest PMTA asset was $1.0 million paid at closing.
Management Commentary
Ryan Stump, Charlie's Chief Operating Officer, explained, "We are thrilled to report that all our hard work, time, and investments into CHUC's PMTA portfolio has begun to pay dividends. With FDA Acceptance Filings for nearly 700 PMTAs, with a Company commitment to full regulatory compliance, and with our first sales of a handful of our 2022 PMTA Products, we believe that Charlie's has only scratched the surface of realizing the full monetary and strategic value of our PMTA portfolio. We believe Charlie's 679 remaining PMTAs, as a stand-alone asset, have a monetary value that far exceeds Charlie's current market cap."
Henry Sicignano III, Charlie's President, explained, "It is gratifying to see that our shift in strategy over the last two years has come together so successfully. We are enormously pleased with our return to profitability, with our success at eliminating the vast majority of the Company's debt, and with our excellent prospects for licensing our PMTA products to several key strategic partners in the industry." Sicignano continued, "What's more, we expect that, in the second half of 2025, organic sales of Charlie's non-nicotine SBX™ product line will take the spotlight. Even though we only began roll-out of SBX late in the second quarter, early results suggest that if we are able to manufacture and import as much product as the market demands, SBX sales - alone - could make 2025 a record year for Charlie's."
Planned Strategic Shift in Manufacturing
To eliminate significant inspection delays and tariff costs that have severely impacted vapor products shipments for the entire industry in recent months, Charlie's intends to launch a US-filled product line in late 2025. In addition to mitigating shipping delays and tariff costs, the US-filled line will enable Charlie's to meet new domestic manufacturing requirements that have been announced by large states. Texas is implementing a new law, Senate Bill 2024, effective September 1, 2025, that bans the sale and possession of certain vape products, including those manufactured or marketed as coming from China or certain other "adversary countries." Tennessee and other states have similar legislation pending. To sell and distribute products in these markets, Charlie's plans to launch a US-filled vapor product line in Q4 2025. The Company's new line will meet new domestic manufacturing requirements and will appeal, broadly, to adult consumers who prefer "Made in America" products.
Financial Results for the Three Months Ended June 30, 2025:
Revenue: For the three months ended June 30, 2025, not including $6.5 million of income from PMTA asset sales, revenue was $2.5 million, an increase of $0.5 million, or 25%, compared with $2.0 million for the three months ended June 30, 2024. The increase in revenue was primarily due to an increase in the sales of Charlie's nicotine-based and nicotine substitute vapor products and alternative products.
Gross Profit: For the three months ended June 30, 2025, not including $6.5 million of income from PMTA asset sales, gross profit was $0.7 million, a decrease of $0.1 million, or 17%, compared with $0.8 million for the three months ended June 30, 2024. The resulting gross margin for the three months ended June 30, 2025 was 26.1%, compared with 38.1% for the three months ended June 30, 2024.
Total Operating Expenses: For the three months ended June 30, 2025, total operating expenses, including general and administrative, sales and marketing and research and development costs, were $1.5 million, an increase of 2%, compared with the three months ended June 30, 2024.
Net Income/Loss: For the three months ended June 30, 2025, net income was $5.0 million, compared with a net loss of $1.0 million for the three months ended June 30, 2024. The increase in net income was primarily due to a large new strategic partner purchase of PMTA assets during the 2nd quarter of 2025.
EPS: For the three months ended June 30, 2025, diluted earnings per share were $0.02, compared with a diluted loss per share of ($0.01), for the three months ended June 30, 2024.
For the six months ended June 30, 2025, Notes Payable were reduced by $2.8 million.
About Charlie's Holdings, Inc.
Charlie's Holdings, Inc. (OTCQB:CHUC) is an industry leader in the premium vapor products space. The Company's products are sold around the world to select distributors, specialty retailers, and third-party online resellers through subsidiary company Charlie's Chalk Dust, LLC has developed an extensive portfolio of brand styles, flavor profiles, and innovative product formats.
For additional information, please visit Charlie's corporate website at: Chuc.com and the Company's branded online websites: sbxvape.com, CharliesChalkDust.com, enjoypachamama.com, and Pacha.co.
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the Company's overall business, existing and anticipated markets and expectations regarding future sales and expenses. Words such as "expect," "anticipate," "should," "believe," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "could," "intend," variations of these terms or the negative of these terms, and similar expressions, are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company's control. The Company's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the Company's ongoing ability to quote its shares on the OTCQB; whether the Company will meet the requirements to up-list to a national securities exchange in the future; the Company's ability to successfully increase sales and enter new markets; whether the Company's PMTA's for its nicotine-containing products will be authorized by the FDA, and the FDA's decisions with respect to the Company's future PMTA's for nicotine products; the Company's ability to manufacture and produce products for its customers; the Company's ability to formulate new products; the acceptance of existing and future products; the complexity, expense and time associated with compliance with government rules and regulations affecting nicotine, synthetic nicotine, products containing nicotine substitutes, and products containing cannabidiol; litigation risks from the use of the Company's products; risks of government regulations; the impact of competitive products; and the Company's ability to maintain and enhance its brands, as well as other risk factors included in the Company's most recent quarterly report on Form 10-Q, annual report on Form 10-K, and other SEC filings. These forward-looking statements are made as of the date of this press release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations.
Investors Contact:
IR@charliesholdings.com
Phone: 949-570-069
SOURCE: Charlie's Holdings, Inc.
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