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Charlies Holdings, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a decrease in revenue to $1,624,000 from $2,706,000 in the same quarter the previous year, attributed mainly to a decline in sales of nicotine-based and hemp-derived products.
Cost of goods sold was $994,000, representing 61.2% of revenue, compared to 59.5% in the same quarter of the previous year. The increase in cost ratio is due to a higher sales mix of Metatine-based products.
The company reported a net loss of $1,022,000 for the quarter, compared to a net loss of $708,000 in the previous year.
General and administrative expenses decreased to $1,420,000 from $1,597,000, primarily due to reductions in payroll and benefits costs.
Sales and marketing expenses decreased to $169,000 from $201,000, reflecting reduced marketing efforts.
Research and development expenses showed a credit of $83,000 due to a vendor refund, compared to an expense of $41,000 in the previous year.
Interest expense increased to $146,000 from $121,000, primarily due to new notes payable.
Charlies Holdings continues to face regulatory challenges, particularly concerning FDA approvals for its nicotine products.
The company has launched new Metatine-based products, which are not subject to FDA regulation, and continues to focus on expanding its product offerings.
Charlies Holdings had a working capital deficit of $1,392,000 as of September 30, 2024, with cash and cash equivalents totaling $601,000.
The company is exploring financing options to support its operations and regulatory compliance efforts, with no assurance of obtaining necessary funds.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Charlies Holdings Inc quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.