Charlie's Holdings, Inc. Announces Financial Results for 2019 Second Quarter and Year to Date

COSTA MESA, California, Aug. 15, 2019 /PRNewswire/ -- Charlie's Holdings, Inc. (the "Company" or "Charlies") (OTC: CHUC), an industry leader in the premium e-cigarette and CBD products space, announced today that on August 14, 2019, it filed its Quarterly Report on Form 10-Q for the three and six months ended June 30, 2019.

"This filing represents our first public quarterly financial disclosure since completing our share exchange with Charlie's Chalk Dust, LLC and the related financing on April 26, 2019. We are pleased to report that, following our transition to a public reporting company, we continue to achieve profitability and top line revenue growth from both our nicotine and CBD based products," said Brandon Stump, CEO of Charlie's. "We continue to be excited for our future and anticipate that we are now well positioned to achieve consolidated profits, as we have recognized certain non-recurring transaction related costs in our combined operating statement." Mr. Stump continued, "our CBD product line showed great success from our initial launch in June of this year, and we plan to further diversify this product line and continue to create products that our customers will enjoy."

Highlights from Second Quarter

• In June of 2019 we successfully launched our first line of CBD products through our related consolidated company, Don Polly, LLC.  This launch allows us to now expand our business in both the nicotine-only e-cigarette vapor product line and hemp-derived, non-THC (less than 0.3%), CBD wellness products. 
• Our CBD product launch included full spectrum CBD tinctures and topical products offered in a variety of flavors and strengths, as well as isolate CBD products in a line of CBD infused vapor products, all marketed under our Pachamama brand.
• The newly launched CBD products generated $1,022,000 in revenue for the three months ended June 30, 2019.
• Both the Company's nicotine and CBD businesses were profitable for the three months ended June 30, 2019, generating combined revenues of $6,819,000.
• The Company continues to make key investments in personnel, products and processes while remaining profitable from operations.

Financial Results for the Three Months Ended June 30, 2019

Consolidated revenue for the three months ended June 30, 2019 increased $1,332,000, or 24%, to $6,819,000, as compared to $5,486,000 for prior year period due to an increase in revenue of (i) $289,000 in our nicotine-based products sold by our wholly-owned subsidiary, Charlie's Chalk Dust, LLC, (ii) $1,022,000 from sales of our CBD products sold through our related consolidated entity, Don Polly, LLC, which launched in June 2019, and (iii) $21,000 in sales from our legacy product, Bazi® All Natural Energy, which we intend to discontinue.

The Company had a consolidated net loss from operations of $3,211,000 for the three months ended June 30, 2019 due primarily to operating profits of $1,169,000 generated from sales of our nicotine-based and CBD products, offset by $4,381,000 attributable to non-recurring corporate and transaction related expenses incurred in connection with the share exchange with Charlie's Chalk Dust, LLC and related financing transaction which closed on April 26, 2019.

Financial Results for the Six Months Ended June 30, 2019

Consolidated revenue for the six months ended June 30, 2019 increased $2,548,000, or 23%, to $13,466,000, as compared to $10,919,000 for same prior year period due to an increase in revenue of (i) $1,504,000 in our nicotine based products sold by our wholly-owned subsidiary, Charlie's Chalk Dust, LLC, (ii) $1,022,000 from sales of our CBD products sold through our related consolidated entity, Don Polly, LLC, which launched in June 2019, and (iii) $21,000 in sales from our legacy product, Bazi® All Natural Energy, which we intend to discontinue.

The Company had a consolidated net loss from operations of $736,000 for the six months ended June 30, 2019 due, primarily, to operating profits of $3,644,000 generated from the sales of our nicotine-based and CBD products, offset by $4,381,00 attributable to non-recurring corporate and transaction related expenses incurred in connection with the share exchange with Charlie's Chalk Dust, LLC and the related financing completed on April 26, 2019.

About Charlie's Holdings, Inc.

Charlie's Holdings Inc. (OTC: CHUC) is an industry leader in the premium e-cigarette and CBD liquid spaces through its subsidiary companies Charlie's Chalk Dust, LLC and Don Polly, LLC. Charlie's Chalk Dust produces high quality vapor products currently distributed in over 80 countries around the world. Charlie's Chalk Dust has developed an extensive portfolio of brand styles, flavor profiles and innovative product formats. Launched in June of 2019, Don Polly, LLC formulates innovative hemp-derived, non-THC (less than 3%), CBD wellness products. Don Polly's high quality CBD products derive from single-strain-sourced hemp extract and high purity CBD isolate crystals. Additional information about Charlie's Chalk Dust can be found at www.charlieschalkdust.com.

Cautionary Note on Forward-Looking Statements – 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 ability to successful increase sales and enter new markets; the Company's ability to manufacture and produce product 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 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 brand, as well as other risk factors included in the Company's most recent quarterly report on Form 10-Q and other SEC filings. These forward-looking statements are made as of the date of this press release and were 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.

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For more information, contact: 
Investor Relations
Charlie's Holdings, Inc.
1007 Brioso Dr.
Costa Mesa, CA 92627
[email protected]

SOURCE Charlie’s Holdings, Inc.