Charlie's Holdings FY22 Revenue Grows 23% To $26.4M, Here Is What You Need To Know

Charlie's Holdings, Inc. CHUC revenue for the year ended December 31, 2022, was $26.4 million, an increase of 23%, compared with $21.5 million for the year ended December 31, 2021. The increase in revenue was primarily due to a $4.0 million increase in Charlie's nicotine-based product sales, and a $900,000 increase in sales of the company's hemp-derived products.

FY 2022 Financial Highlights

• Gross profit was $10.0 million, a decrease of $1.1 million, or 10%, compared with $11.1 million for the year ended December 31, 2021.

• Gross margin was 37.8%, compared with 51.5% for the year ended December 31, 2021.

• Operating loss was $1.8 million compared to operating income of $600,000 in 2021.

• Including the fair value of derivative liabilities, net loss was $1.6 million compared to net income of $4.8 million in 2021.

"2022 was a very strong year for Charlie's, as we continued our growth trajectory by increasing revenue to an all-time Company record of $26.4 million," stated Matt Montesano, Charlie's Holdings, CFO. "Despite increasing investment in our future, by filing new PMTAs for our synthetic nicotine Pacha products, investing in "age-gating technology" research and development, and investing in the development of new alternative alkaloid vapor products, we improved operating efficiency as our operating expenses, as a percentage of revenue, declined from 49% to 45% for the full year 2022."

Henry Sicignano III, Charlie's president, stated, "Our team has developed - and begun executing - a well laid-out strategic plan with focus on three broad initiatives: development of proprietary technology and novel new products, expansion of the company's hemp-derived alternative cannabis product line and focus on top line growth. Through the course of 2023, we will continue to concentrate our resources on areas of our business in which we enjoy competitive advantages in order to increase market share, sales, and, ultimately, Charlie's marketcap. I am proud to report: Charlie's is extremely well positioned to enjoy very substantial growth over the next 12-18 months."

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