Charlie’s Holdings, parent to the Charlie’s Chalk Dust brand, announced the company’s financial results for the first quarter (Q1) ending March 31, 2021. Charlie’s reported that revenue, gross profit, gross margin, and cash balance all increased from Q4 2020 to Q1 2021, according to a release.
Revenue for the 1Q of 2021 was $4,361,000, an increase of $131,000 compared to Q4 2020, and a decrease of $44,000 or 1 percent, compared to $4,405,000 for the same time the previous year. Gross profit for Q1 2021 was $2,418,000, an increase of $305,000 compared to Q4 2020 and a decrease of $24,000, or 1 percent, compared to $2,442,000 for the same period 2020.
Other announcments include:
- Operating loss decreased 95 percent year-over-year, and 70 percent from Q4 2020, to $229,000,
- Cash balance of $3.5 million,
- Total assets of $8.1 million,
- Closed a $3 million capital raise in common stock (priced at $0.0085) with company founders,
- Introduced Pachamama Disposables, Charlie’s first-ever entrant into the rapidly expanding U.S. disposable e-cigarette market,
- Successfully assembled a solution “network” in order to meet the requirements of both the Consolidated Appropriations Act of 2021 and the Prevent All Cigarette Trafficking (PACT) Act to ensure uninterrupted service to the company’s distributor partners.
The company announced in mid-2020 that its premarket tobacco product application (PMTA) had entered the substantive review phase of the U.S Food and Drug Administration (FDA) regulatory process. “Having engaged a team of more than 200 professionals and invested nearly $5 million to compile and submit Charlie’s initial PMTA submission, the company is confident that the FDA will recognize that Charlie’s submission is both distinguished and suitable for approval,” the release states. “The company believes its comprehensive PMTA will ultimately prove a competitive advantage for Charlie’s. Most of the company’s competitors did not have the desire, the technical expertise, or the financial resources to complete the PMTA process. As a result, in fewer than 12 months’ time, when others are forced to withdraw their products from the market, Charlie’s may be one of a very select group still legally allowed to operate in the premium e-liquid product space.”