Insiders Purchased $270,000 of Common Equity in First Half of 2026

COSTA MESA, CA, Aug. 17, 2026 (GLOBE NEWSWIRE) -- Charlie’s Holdings, Inc. (OTCQB: CHUC) (“Charlie’s” or the “Company”), an industry leader in the premium vapor products space, reported results for the three months ended June 30, 2026, and provided an update on recent business highlights.

Key Financial Highlights for Q2 2026 (compared with Q2 2025)

• Revenue increased 116% to $3.8 million
• Gross profit increased 130% to $1.1 million
• Gross margin improved to 29.4%
• Operating loss increased 29% to $1.2 million
  
  

Key Balance Sheet Highlights for Q2 2026 (compared with Year End 2025)

• Cash balance of $0.5 million, compared to $1.3 million
• Total assets of $12.8 million, compared to $11.6 million
• Total shareholders’ equity of $3.1 million, compared to $3.4 million
  
  

Management Commentary

“We are pleased to announce that the FDA recently notified us that certain of our PACHA products -30 SKUs- for which PMTAs have been submitted have been tentatively identified for inclusion on the FDA's public-facing webpage of products for which the FDA generally does not intend to prioritize enforcement of PMTA requirements. This is a highly promising development,” explained Henry Sicignano, Charlie’s President and CEO. “Indeed, while the US market remains flooded with illicit Chinese products, Charlie’s is continuing to focus on our commitments to regulatory compliance, best-in-class product design, and award-winning flavors.”

Mr. Sicignano continued, “Most importantly, we are actively planning the launch of America’s first age-gated flavored disposable vape. This launch, and the potential regulatory upside it represents, could eventually result in a $1-2 billion market cap for Charlie’s.”

Recent Business Highlights

• Charlie’s launched SBX 25K Virginia Tobacco disposables across the State of California. Charlie's is one of the select few companies to have received California Unflavored Tobacco List ("UTL") authorization for FOUR modern disposables.
  
  
• Charlie’s launched industry-leading 75K disposables with increased puff capacity, refined device designs, upgraded triple mesh coil technology, and 10 award-winning flavors.
  
  
• The Company announced that Charlie’s remains on schedule to launch the single most important initiative in the Company’s history. Charlie’s plans to test-market America’s first age-gated flavored disposables in hundreds of compliance-minded retail stores. 
  
  
• In the first half of 2026 Charlie’s management and directors purchased 1,350,000 restricted shares of the Company’s common stock at a price of $0.20 per share. No warrants or inducements were offered to the buyers.
  
  

U.S. Food and Drug Administration Expands Market Access – May 5, 2026

On May 5, 2026, the FDA authorized the marketing of four Glas Inc.’s age-gated electronic nicotine delivery systems (“ENDS”) through the premarket tobacco product application (“PMTA”) pathway. Each product is an e-liquid pod containing 50mg/ml (or 5%) of tobacco-derived nicotine. The authorized pods include Classic Menthol and Fresh Menthol, as well as two “fruit flavors,” Gold, and Sapphire. This action marks the FDA’s first authorization of non-tobacco, non-menthol “fruit-flavored” ENDS products. Industry officials view these developments – combined with the May 12, 2026 resignation of FDA Commissioner Marty Makary – as a sign that the FDA’s long-standing resistance to broader flavored vape approvals may be starting to soften.

FDA Enforcement Priorities Guidance

On June 23, 2026, the FDA notified Charlie’s that certain of the Company’s PACHA products (30 SKUs) for which PMTAs have been submitted have been tentatively identified for inclusion on the FDA's public-facing webpage of products for which the FDA generally does not intend to prioritize enforcement of premarket authorization requirements. This is a development Charlie’s views as highly favorable to the Company.

Financial Results for the Three Months Ended June 30, 2026:

• Revenue: For the three months ended June 30, 2026 revenue was $3.8 million, an increase of $2.0 million, or 116%, compared with $1.8 million for the three months ended June 30, 2025. This increase is all due to the increase in nicotine-based product and nicotine alternative products sales. Sales of SBX, a non-nicotine, disposable vapor product which is not subject to FDA review, experienced a significant increase in 2026. 
  
  
• Gross Profit: For the three months ended June 30, 2026 gross profit was $1.1 million, an increase of $0.6 million, or 130%, compared with $0.5 million for the three months ended June 30, 2025. The resulting gross margin for the three months ended June 30, 2026 was 29.4%, compared with 27.6% for the three months ended June 30, 2025.
  
  
• Total Operating Expenses: For the three months ended June 30, 2026, total operating expenses, including general and administrative, sales and marketing and research and development costs, were $2.4 million, an increase of $0.9 million, or 63%, compared with $1.4 million for the three months ended June 30, 2025.
  
  
• Operating Loss: For the three months ended June 30, 2026, operating loss was $1.2 million, compared with an operating loss of $1.0 million for the three months ended June 30, 2025.
  
  

About Charlie’s Holdings, Inc.

Charlie's Holdings, Inc. (OTCQB: CHUC) is an industry leader in the premium vapor products space. The Company's products are sold around the world to select distributors, specialty retailers, and third-party online resellers through subsidiary company Charlie's Chalk Dust, LLC. Charlie's Chalk Dust has developed an extensive portfolio of brand styles, flavor profiles, and innovative product formats.

For additional information, please visit Charlie’s corporate website at: Chuc.com and the Company’s branded online websites: sbxvape.com, CharliesChalkDust.com, enjoypachamama.com, and Pacha.co.

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 ongoing ability to quote its shares on the OTCQB; whether the Company will meet the requirements to up-list to a national securities exchange in the future; the Company’s ability to successfully increase sales and enter new markets; whether the Company’s PMTA’s for its nicotine-containing products will be authorized by the FDA, and the FDA’s decisions with respect to the Company’s future PMTA’s for nicotine products; the Company's ability to manufacture and produce products 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, synthetic nicotine, products containing nicotine substitutes, 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 brands, as well as other risk factors included in the Company's most recent quarterly report on Form 10-Q, annual report on Form 10-K, and other SEC filings. These forward-looking statements are made as of the date of this press release and are 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.

Investor Contact:
IR@charliesholdings.com
Phone: 949-570-0691