Charlie's Holdings Reports First Quarter 2024 Results

Increasing Awareness and Market Share of SPREE BAR - with Proprietary Metatine Inside - Throughout 2024

COSTA MESA, CA / ACCESSWIRE / May 20, 2024 / 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 March 31, 2024, and provided an update on recent business highlights.

Foto: Accesswire

Key Financial Highlights for Q1 2024 (compared with Q1 2023)

• Revenue decreased 24% to $3.1 million
• Gross profit increased 6% to $0.9 million
• Operating expenses decreased 22% to $1.9 million
• Operating loss decreased 38% to $0.9 million
• Net loss decreased 25% to $1.0 million

Recent Business Highlights

• Developed, tested, and trademarked Metatine nicotine substitute alkaloid; launched SPREE BAR disposable pod system product line.
• Initiated "Metatine awareness campaign" to educate the trade and adult consumers in select markets across the United States about Metatine's key selling points; presented keynote session "Creating Great Products in an Increasingly Regulated Market" at the 2024 Total Products Exposition in Las Vegas.
• Initiated development efforts on (i) a second-generation SPREE BAR disposable device, and (ii) Metatine-based e-liquids. Both products are slated for launch in the summer of 2024.

Management Commentary

Ryan Stump, Charlie's Chief Operating Officer, explained, "In the first quarter of 2024 we invested working capital and the bulk of management's attention to the introduction and test marketing of our SPREE BAR line of nicotine substitute vapor products. We believe that the market for alternative alkaloid products, such as SPREE BAR, offers an enormous opportunity for growth. As market awareness increases, and as we continue to test and roll-out the SPREE BAR product line, we believe nicotine substitute products will become the single largest, most important commercial opportunity in Charlie's history."

"During the first quarter of 2024, we continued to significantly reduce our cash burn and deployment of resources toward the development and test marketing of the SPREE BAR product line," stated Matt Montesano, Charlie's Holdings, Inc. Interim Chief Financial Officer. "We are preparing for customer education campaigns and the commercial launch of Charlie's nicotine substitute products ̶ in disposable vape format ̶ in the second half of 2024."