Mon, Aug 19, 7:47 PM (148 days ago)
For the quarter ended June 30, 2024, Charlie's Holdings, Inc. reported a significant decline in revenue, totaling approximately $2,043,000, down 48.5% from $3,970,000 in the same quarter of 2023. This drop was attributed to decreased sales in both nicotine-based vapor products and hemp-derived products. The company incurred a net loss of $967,000 compared to a net income of $32,000 in the prior year. Operating costs decreased to $2,779,000, but loss from operations rose to $736,000, reflecting the impact of reduced sales and higher costs associated with new product lines, notably the SPREE BAR. For the six months ending June 30, 2024, total revenue was $5,094,000, a decrease of 36.3%. The net loss increased to $2,012,000 from $1,358,000 year-over-year. The company's working capital position deteriorated to a deficit of $557,000, raising substantial doubt about its ability to continue as a going concern. Regulatory risks related to FDA approvals for its products further complicate its financial outlook. The company has implemented cost-cutting measures and may require additional financing to support ongoing operations and product development efforts.