Charlie's Holdings CHUC

Charlie's Holdings, Inc. is a leader in the premium vapor products industry, providing adult smokers with better alternatives to combustible cigarettes through its portfolio of proprietary products. The Company develops, markets, and distributes alternative alkaloid (non-nicotine) vapor products, electronic nicotine delivery systems (ENDS), and premium e-liquids. Its primary strategic focus is on developing intellectual property related to product access and compliance, including advanced age-gating technologies.

Charlie's generates revenue through the sale of its proprietary product lines, which include the SBX Disposable device series featuring Metatine™, nicotine-based disposable vapes under the Pacha and PACHAMAMA brands, and a range of e-liquids and nicotine salt products. These products are sold to adult consumers seeking alternatives to traditional tobacco, with distribution occurring through specialty retailers, convenience stores, liquor stores, gas stations, and third-party distributors and wholesalers across the United States and select international markets.

The company operates through the following segments: Alternative Alkaloid Products, Nicotine-Based Disposables, and E-Liquids.

• Alternative Alkaloid Products: This segment centers on Metatine™, a synthetically derived alkaloid that serves as the proprietary ingredient in the SBX Disposable device line. SBX Disposables are zero-nicotine, closed-system vaping devices available in 5-Packs with 17,000-25,000 puff delivery, three firing modes, and active battery and e-liquid monitoring. The current portfolio includes eighteen unique flavors and is not subject to FDA PMTA review or state flavor bans on ENDS due to its non-nicotine composition.
• Nicotine-Based Disposables: This segment includes disposable vapes sold under the Pacha and PACHAMAMA brand names, differentiated by size and intended market. Pacha 4mL, 8mL, and 12mL Disposables cater to the US market with varying puff counts and flavor profiles, including fruit, dessert, and ice varieties. PACHAMAMA 20mL Disposables offer enhanced features such as three power modes and an attractive screen display, marketed as providing 'the most desirable flavors on earth.'.
• E-Liquids: This segment comprises refillable e-liquids and nicotine salt products used in open and semi-open vaporizers, available in nicotine concentrations of 0 mg, 3 mg, 6 mg, 25 mg, and 50 mg per milliliter. The Company's proprietary e-liquid brands are sold under the Pacha (domestic) and PACHAMAMA™ (international) names, featuring blends like passion fruit raspberry yuzu and blood orange banana gooseberry. In 2024, Charlie's launched the PACHAMAMA PLUS+ e-liquid line using its proprietary nicotine salt analog to deliver boosted flavor and ultra-smooth performance.

Charlie's holds a distinctive position in the vapor products industry as one of the few companies offering non-nicotine alternatives like Metatine™-based products that circumvent certain FDA and state regulatory restrictions. While competing in a highly fragmented market against brands such as Coastal Clouds, Juice Head, Breeze, Flum, Lost Mary, Geek Bar, and Raz, Charlie's differentiates itself through its proprietary alkaloid technology and focus on compliance-oriented innovation. The Company faces competition from both illicit products and major tobacco-linked brands like Juul, Vuse, and NJoy, which dominate traditional retail channels.

Charlie's serves adult consumers seeking alternatives to combustible cigarettes, including users of both nicotine and non-nicotine vapor products. Its products are distributed through more than 3,000 specialty retailers and have expanded into convenience stores, liquor stores, and gas stations. The Company maintains exclusive distribution arrangements in certain markets and supports its sales through a U. S.-based team that engages with distributors and retailers at trade shows and through targeted marketing initiatives.