Charlie's Holdings Files Q2 2024 10-Q

TL;DR

Charlie's Holdings (CHUC) dropped its Q2 10-Q. Check financials.

AI Summary

Charlie's Holdings, Inc. filed its 10-Q for the period ending June 30, 2024. The company, formerly known as True Drinks Holdings, Inc., operates in the medicinal chemicals & botanical products sector. Key financial details and operational updates for the second quarter of 2024 are presented in this filing.

Why It Matters

This filing provides investors with the latest financial performance and operational status of Charlie's Holdings, Inc. for the second quarter of 2024, crucial for understanding the company's trajectory.

Risk Assessment

Risk Level: medium — The company has undergone several name changes and operates in a regulated industry, which can introduce complexities and risks.

Key Numbers

• 20240630 — Reporting Period End (The end date for the financial reporting period covered by this 10-Q.)
• 20240819 — Filing Date (The date this 10-Q was officially filed with the SEC.)

Key Players & Entities

• Charlie's Holdings, Inc. (company) — Filer
• True Drinks Holdings, Inc. (company) — Former company name
• 20240630 (date) — Reporting period end date
• 20240819 (date) — Filing date
• 949-570-0691 (phone_number) — Business phone number

FAQ

Key Financial Figures

• $6,000,000 — luding the expenditure of approximately $6,000,000 as of June 30, 2024, to support our PMT

Filing Documents

• chuc20240630_10q.htm (10-Q) — 1129KB
• ex_714433.htm (EX-31.1) — 13KB
• ex_714434.htm (EX-31.2) — 12KB
• ex_714435.htm (EX-32.1) — 5KB
• ex_714436.htm (EX-32.2) — 5KB
• 0001437749-24-027186.txt ( ) — 5743KB
• chuc-20240630.xsd (EX-101.SCH) — 54KB
• chuc-20240630_def.xml (EX-101.DEF) — 376KB
• chuc-20240630_lab.xml (EX-101.LAB) — 316KB
• chuc-20240630_pre.xml (EX-101.PRE) — 406KB
• chuc-20240630_cal.xml (EX-101.CAL) — 39KB
• chuc20240630_10q_htm.xml (XML) — 876KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION ITEM 1.

Financial Statements

Financial Statements Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 1 Condensed Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2024 and 2023 2 Condensed Consolidated Statements of Stockholders' Deficit (unaudited) for the three and six months ended June 30, 2024 and 2023 3 Condensed Consolidated Statements of Cash Flows (unaudited) for the three and six months ended June 30, 2024 and 2023 4 Notes to Condensed Consolidated Financial Statements (unaudited) 5 ITEM 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 17 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 25 ITEM 4.

Controls and Procedures

Controls and Procedures 25

OTHER INFORMATION

PART II. OTHER INFORMATION ITEM 1.

Legal Proceedings

Legal Proceedings 25 ITEM 1A.

Risk Factors

Risk Factors 25 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 26 ITEM 3. Defaults Upon Senior Securities 26 ITEM 4. Mine Safety Disclosures 26 ITEM 5. Other Information 26 ITEM 6. Exhibits 26

SIGNATURES

SIGNATURES 27 PART I

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CHARLIE ' S HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) June 30, December 31, 2024 2023 (Unaudited) ASSETS Current assets: Cash $ 1,085 $ 367 Accounts receivable, net 332 289 Inventories, net 3,203 3,826 Prepaid expenses and other current assets 196 604 Total current assets 4,816 5,086 Non-current assets: Property, plant and equipment, net 91 157 Right-of-use asset, net 219 424 Other assets 101 101 Total non-current assets 411 682 TOTAL ASSETS $ 5,227 $ 5,768 LIABILITIES AND STOCKHOLDERS' (DEFICIT) Current liabilities: Accounts payable and accrued expenses $ 3,016 $ 2,846 Notes payable, net 382 716 Notes payable - related parties 1,514 700 Derivative liability - 79 Lease liabilities 223 355 Deferred revenue 238 58 Total current liabilities 5,373 4,754 Non-current liabilities: Note payable, net of current portion 150 150 Note payable, net - related party, net of current portion - 898 Lease liabilities, net of current portion - 73 Total non-current liabilities 150 1,121 Total liabilities 5,523 5,875 COMMITMENTS AND CONTINGENCIES (see Note 12) Stockholders' deficit: Convertible preferred stock ($ 0.001 par value); 1,800,000 shares authorized Series A, 300,000 shares designated; 126,680 and 128,181 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively - - Series B, 1,500,000 shares designated; 0 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively - - Common stock ($ 0.001 par value); 500,000,000 shares authorized; 249,602,388 and 228,535,886 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 250 229 Additional paid-in capital 10,006 8,204 Accumulated deficit ( 10,552 ) ( 8,540 ) Total stockholders' deficit ( 296

View Full Filing

View this 10-Q filing on SEC EDGAR