10-K
1
chuc10k_dec312020.htm
ANNUAL REPORT
chuc10k_dec312020
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-K
For the fiscal year ended December 31, 2020
or
Commission file No.001-32420
CHARLIE’S HOLDINGS, INC.
(Exact Name of Registrant as Specified in Its Charter)
1007 Brioso Drive, Costa Mesa, CA 92627
(Address of Principal Executive Offices)
(949) 531-6855
(Registrant’s Telephone Number, Including Area
Code)
Securities registered pursuant
to Section 12(b) of the Act:
None
Securities
registered under Section 12(g) of the Exchange
Act:
Title of Each Class Name of Each Exchange on Which Registered
Common Stock ($0.001 par value) OTC Markets
Indicate by check mark if the registrant is a well-known seasoned
issuer, as defined in Rule 405 of the Securities Act. Yes
[ ] No [X]
Indicate by check mark if the registrant is not required to file
reports pursuant to Section 13 or Section 15(d) of the Act. Yes
[ ] No [X]
Indicate by check mark whether the registrant has submitted
electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§232.405 of this
chapter) during the preceding 12 months (or for such shorter period
that the registrant was required to submit such files). Yes
[X] No [ ]
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days. Yes [X]No [ ]
Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer,
smaller reporting company, or an emerging growth company. See the
definitions of “large accelerated filer,”
“accelerated filer,” “smaller reporting
company,” and “emerging growth company” in Rule
12b-2 of the Exchange Act.
Large accelerated filer [ ] Accelerated filer [ ]
Non-accelerated filer [X] Smaller reporting company [X]
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange
Act.☐
Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act). Yes
[ ] No [X]
The aggregate market value of the registrant’s common stock
held by non-affiliates of the registrant as of the last business
day of the registrant’s most recently completed second fiscal
quarter, June 30, 2020 was approximately $36,082,430 based on a
closing market price of $0.019 per share, as reported on the OTC
Pink Marketplace.
There were 19,638,493,279 shares of the registrant’s common stock
outstanding as of March 23, 2021.
CHARLIE’S HOLDINGS,
INC.
ANNUAL REPORT ON FORM 10-K
YEAR ENDED DECEMBER 31, 2020
TABLE OF CONTENTS
Page
PART I
Item 1. Description of Business 1
Item 1A. Risk Factors 13
Item 1B. Unresolved Staff Comments 26
Item 2. Properties 26
Item 3. Legal Proceedings 27
Item 4. Mine Safety Disclosures 27
PART II
Item 6. Selected Financial Data 28
Item 7A. Quantitative and Qualitative Disclosures About Market Risk 38
Item 8. Financial Statements and Supplementary Data 38
Item 9A. Controls and Procedures 38
Item 9B. Other Information 39
PART III
Item 10. Directors, Executive Officers and Corporate Governance 40
Item 11. Executive Compensation 44
Item 14. Principal Accountant Fees and Services 53
PART IV
Item 15. Exhibits, Financial Statement Schedules 54
Signatures 58
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Table of Contents
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This report contains “forward-looking” statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and is subject to the safe harbor created by those
sections. We intend to identify forward-looking statements in this
report by using words such as “believes”,
“intends”, “expects”, “may”,
“will”, “should”, “plan”,
“projected”, “contemplates”,
“anticipates”, “estimates”
“predicts”, “potential”,
“continue” or similar terminology. These statements are
based on our beliefs as well as assumptions we made using
information currently available to us. We undertake no obligation
to publicly update or revise any forward-looking statements,
whether as a result of new information, future events, or
otherwise. Because these statements reflect our current views
concerning future events, these statements involve risks,
uncertainties, and assumptions. Actual future results may differ
significantly from the results discussed in the forward-looking
statements. These risks include changes in production and demand
for our products, changes in the level of operating expense, our
ability to expand our network of customers, changes in general
economic conditions that impact consumer behavior and spending,
product supply, the availability, amount, and cost of capital to us
and our use of such capital, and other risks discussed in this
report. Additional risks that may affect our performance are
discussed below under the section entitled “Risk
Factors”.
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Table of Contents
PART
I
ITEM 1. DESCRIPTION OFBUSINESS
As used in this Annual Report, unless otherwise
stated or the context otherwise requires, references to the
“Company”, “we”, “us”, “our” or similar references mean Charlie’s
Holdings, Inc. (formerly True Drinks Holdings, Inc.), its
subsidiaries and consolidated variable interest entity on a
consolidated basis. References to “Charlie’s”
and “CCD” refer to Charlie’s Chalk Dust, LLC,
a California limited liability company and wholly-owned subsidiary
of the Company, and “Don Polly” refers to Don Polly, LLC, a Nevada limited
liability company that is owned by entities controlled by Brandon
Stump and Ryan Stump, the Company’s Chief Executive Officer
and Chief Operating Officer, respectively, and a consolidated
variable interest for which the Company is the primary
beneficiary.
On
April 26, 2019, the Company (then known as True Drinks Holdings,
Inc.), entered into a Securities Exchange Agreement with each of
the members of Charlie’s on that date (the
“Charlie’s
Members”), pursuant to which the Company acquired all
outstanding membership interests beneficially owned by the
Charlie’s Members in exchange for certain units consisting of
the Company’s securities (the “Share Exchange”). As a result,
Charlie’s became a wholly owned subsidiary of the Company.
Following the consummation of the Share Exchange, the primary
business operations of the Company consisted of those of
Charlie’s and, more recently, Don Polly.
The
Share Exchange resulted in a change of control of the Company, with
the Members and Direct Investors owning approximately 86.1% of the
Company’s outstanding voting securities immediately after the
Share Exchange, and the Company’s current stockholders
beneficially owning approximately 13.9% of the issued and
outstanding voting securities, which includes the Advisory Shares.
Together, Brandon Stump and Ryan Stump, the founders of
Charlie’s and the Company’s newly appointed Chief
Executive Officer and Chief Operating Officer, respectively, own
approximately 50% of the Company’s issued and outstanding
voting securities as a result of the Share Exchange.
Overview
Our
objective is to become a leader in the rapidly growing, global
e-cigarette segment of the broader nicotine related products
industry. Through Charlie’s, we formulate, market and
distribute branded e-cigarette liquid for use in both open and
closed consumer e-cigarette and vaping systems. Charlie’s
products are produced domestically through contract manufacturers
for sale through select distributors, specialty retailers and
third-party online resellers throughout the United States, as well
as over 80 countries worldwide. Charlie’s primary
international markets include the United Kingdom, Italy, Spain,
Belgium, Australia, Sweden and Canada. In June 2019, we launched
distribution, through Don Polly, of certain premium vapor, tincture
and topical products containing hemp-derived cannabidiol
(“CBD”) and we
currently intend to develop and launch additional products
containing hemp-derived CBD in the future. Prior to the Share Exchange, our primary business
was the development, marketing, sale and distribution of
all-natural, vitamin-enhanced drinks, including AquaBall®
Naturally Flavored Water and Bazi® All Natural Energy(“Bazi”). At this time, we do not intend to
continue sales of these products in their current
form.
We intend to expand our operations and seek
revenue and profit growth by increasing the sales of our branded
e-cigarette liquid through the registration of certain of our
products with the Food and Drug Administration
(“FDA”)and expanding sales territories (both
domestic and international), as well as from our recently launched
sales and distribution of hemp-derived CBD
products.
Our Products
Charlie’s Product Line
Our business efforts consist primarily
of formulating, marketing and distributing our portfolio
of branded e-cigarette liquid and other premium vapor products
for use in consumer e-cigarette and vaping systems, which we
collectively refer to as the “Charlie’s Product
Line” or
“Charlie’s
Products”.
E-Liquids
E-liquids used to produce vapor in vaping devices
are sold separately for use in refillable tanks of open system
vaporizers. Liquids are available in differing nicotine
concentrations (0 mg, 3 mg and 6 mg per milliliter) to suit user
preferences. Liquids are available in a variety of flavors,
including our proprietary blends. The liquid solution
consists of flavoring and/or nicotine dissolved in one or several
hygroscopic components, which turns the water in the solution into
the smoke-like vapor when heated. The most commonly used
hygroscopic components are propylene glycol
(“PG”), vegetable glycerin
(“VG”) or polyethylene glycol 400. VG imparts
sweetness and produces vapor clouds, while PG produces more
“throat hit”, which simulates the feeling of smoking.
Our proprietary brands of e-liquids are manufactured by ISO Class 7
certified manufacturers in the United States, which helps ensure
their purity and quality.
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Charlie’s
e-liquid products are produced under seven brand names
distinguished by their flavor profiles, packaging art and
ingredient transparency. All products are packaged in plastic drip
containers that are typically available in seven sizes ranging from
10ml to 100ml, as well as bulk concentrate formats.
●
Black Label and White
Label. Charlie’s
original black and white product line launched in 2015. Black Label
is currently available in five flavors and White Label is currently
available in four flavors.
●
PachamamaTM. A line launched in 2016 consisting
of eight eclectic mixes of natural fruit flavors such as passion
fruit raspberry yuzu, blood orange banana gooseberry and
huckleberry pear acai.
●
Meringue. The third brand launched in 2016, based on
creative character stories, currently includes three
flavors.
●
CampfireTM. Outdoors and Smores flavor inspired
by camp vibes.
Nicotine Salt Products
Nicotine salt e-liquids
(“NIC
salts”) are formulated
for use in lower wattage open, semi-open and closed system
vaporizers and are available in higher nicotine concentrations
(25mg and 50mg per milliliter) than traditional e-liquids. Nicotine
salts consist of nicotine dissolved in an acid that results in a
lower PH level than other e-liquids. This form of nicotine has a
higher bioavailability resulting in faster blood stream absorption
and more closely mimics the effects of combustible tobacco
products. We broadly released PachamamaTM Salts, an extension
of the PachamamaTM line, in late December 2018 to a select
group of key accounts, which now includes seven flavors packaged in
10ml, 30ml and 60ml bottles. During the third quarter of 2019, we
launched NIC salt extensions of the Black, Gold and White Label
Charlie’s Chalk Dust brands and will continue to evaluate the
launch of additional products in this category as demand continues
to grow.
Don Polly
Don Polly is a company under common ownership with
the Company, and was established in April 2019 for the specific
purpose of developing, marketing and distributing proprietary and
innovative hemp-derived cannabidiol (“CBD”), non-THC, wellness products. In June
2019, we introduced, through Don Polly, full-spectrum hemp extract
and CBD isolate wellness products across a variety of formats and
with different strengths. Our initial launch consisted of six
vapor, eight tincture and two topical product variations. The newly
released products were launched under the PachamamaTM brand by
way of a licensing agreement between Don Polly and Charlie’s,
entered on April 25, 2019 (the"Licensing
Agreement"). In the near term,
we expect to continue expanding the hemp-derived CBD-based products
line to include additional CBD isolate products and
Tetrahydrocannabinol (“THC”)-
free, broad spectrum hemp extract products currently in
development.
Don
Polly is owned by two limited liabilities companies, of which one
is wholly-owned by Brandon Stump, the Company’s Chief
Executive Officer, and the other is wholly-owned by Ryan Stump, the
Company’s Chief Operating Officer. Pursuant to the Licensing
Agreement, Charlie's granted Don Polly a limited right and license
to use certain of Charlie’s trademarks, copyrights and
original artwork, in connection with Don Polly’s branded CBD
products, as well as a Services Agreement pursuant to
which Charlie’s provides certain services to Don
Polly related to the sales, marketing, brand development of
Don Polly products.
As a result, the Company and Don Polly launched a
line of premium vapor, tincture and topical products
containing hemp-derived CBD in June 2019, which we refer to
the “Don Polly
Products” and
“Don
Polly Product Line”. Don
Polly’s efforts have been focused on developing and producing
high quality CBD products made from single-strain-sourced hemp
extract and high purity CBD isolate crystals. In addition, good
manufacturing practices and quality control parameters are of the
utmost importance to the Don Polly Products, which contribute to
the differentiation of the Don Polly Products in the CBD product
industry. The Don Polly Products consist of both full and
broad-spectrum, as well as isolate CBD products across three
categories including vapor, ingestibles, and topicals.
PachamamaTM CBD products sold by Don Polly are currently
available in the U.S., Mexico, U.K., Australia and Switzerland, and
we expect to continue expanding both our domestic and international
distribution efforts.
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Isolate CBD Products
Our CBD
isolate products contain a minimum purity of 99% isolate crystals,
tested by independent, third-party facilities to ensure it is free
of pesticides and heavy metals. Vape, as a CBD delivery method, has
grown in popularity due to the high level of bioavailability and
reported therapeutic responses. In response to demand for CBD
infused e-liquids from our existing distribution channels, we
launched the Don Polly Vape Product Line and Don Polly Isolate
Products. The Don Polly Vape Product Line is currently available in
30ml plastic bottles across three flavors (Minty Mango, Grape Berry
and Strawberry Watermelon) and two strengths (250mg and 500mg). We
are continuing to research and develop isolate products in an
effort to further build out Don Polly’s overall product
portfolio.
Full Spectrum CBD Products
Our
full spectrum hemp extract comes from whole plant extraction which
retains the plant’s natural compounds. This extraction method
ensures each product preserves the holistic benefits of the plant
including minimal amounts of THC (0.3% or less), which allows for
optimal absorption of the plant’s nutrients. While CBD alone
is a beneficial cannabinoid, full spectrum products provide the
body access to all the plant’s cannabinoids, allowing the end
user to achieve a wide range of therapeutic benefits. The full
spectrum products are formulated with single-source and single
strain hemp extracts. Don Polly believes this sourcing practice
yields various compounds that work synergistically to heighten the
effects of the products, making them superior to single-compound
CBD isolates. In June 2019, we introduced the PachamamaTM
tincture and topical full spectrum products. The tincture offering
includes six flavors (the Natural, Green Tea Echinacea, Goji Cacao,
Black Pepper Turmeric, Ylang Ylang Holy Basil and Kava Kava
Valerian) available in 30ml bottle sizes and both 750mg and 1750mg
strengths. Our current topical product offering includes the
Athletic Rub, available in a two ounce jar and 500mg strength. This
product has become one of our most popular full spectrum offerings.
Additionally, Don Polly released the first tapioca-based Vegan Gel
Caps in May 2020 available in both a 30-count jar and a two-count
sachet, in order to accommodate consumer demand for alternative
delivery methods for full spectrum products. We plan on continuing
to research, develop, and launch products in these
categories.
Broad Spectrum CBD Products
In
addition to isolate and full spectrum CBD products, we believe
broad spectrum hemp-derived CBD products can be developed to
provide the same benefits of full spectrum CBD products. Through
additional processing of hemp-derived extracts, we can eliminate
the presence of THC. This category of THC-free, broad spectrum
products will provide consumers with the same level of quality and
nutrients we value in our full spectrum products, without the
concern of consuming the minimal amount of THC. In Q4 of 2019, we
released three very dynamic broad spectrum topicals; our Pain Cream
850mg, Icy Muscle Gel 500mg and Body Lotion 300mg. The Pain Cream,
offered in a 100ml bottle, offers a combination of broad-spectrum
CBD, menthol, MSM, arnica and capsaicin to provide quick, effective
relief. The Icy Muscle Gel roll-on has a blend of ancient Chinese
herbs along with cooling menthol and camphor to temporarily relieve
nagging pains, and provide anti-inflammatory treatment to muscles
and joints. Don Polly’s Body Lotion rounds out the initial
broad spectrum topical portfolio offerings with 300mg of CBD and an
ultra-nourishing blend of botanical oils for soft, radiant, and
balanced skin. The Body Lotion is currently offered in a 50ml size.
As with the full spectrum and isolate categories, our Research and
Development team is continually investigating product offerings to
support and enhance the broad spectrum portfolio.
Manufacturing and Distribution
Manufacturing
Charlie’s
Product Line. We work closely with
contract manufacturing partners in the United States, Ireland and
Scotland to manufacture our products. Our e-liquid and NIC salts
products are manufactured to meet our proprietary formula
specifications in facilities that are ISO Class 7
certified, which helps
ensure their purity and quality. In 2020, we added an
additional supplier and sourced over 90% of our finished goods from
three manufacturers in the United States. While we have developed
long-standing relationships with our manufacturing sources and take
great care to ensure that they share our commitment to quality, we
do not have any long-term term contracts with these parties for the
production of our product lines. We maintain redundancies in our
supply chain and are aware of several alternative sources for our
products.
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Don
Polly Product Line. Our hemp-derived,
CBD-based Don Polly Products are manufactured with contract
manufacturers to meet our formula specifications. While we do not
have any long-term contracts with these parties, we are
strengthening our supplier partnerships as well as identifying
additional supplier and contract manufacturing
opportunities.
Distribution
Charlie’s
Product Line.Once manufactured,
Charlie’s Products are directly distributed throughout the
United States and in more than 80 countries, primarily the
United Kingdom, Italy, Spain, Belgium, Australia, Sweden and
Canada. We
distribute our products to more than 2,200 specialty retailers
through direct sales and to distributors and wholesalers both in
the United States and internationally. Retailers of our
products include specialty retailers throughout the United States
and in 80 other countries. We also distribute our
products on a very limited basis through convenience stores and gas
stations. With respect to products that we sell through
third-party distributors and wholesalers, we typically sell our
products to these customers for their re-sale. In select markets we
maintain exclusive arrangements with distributors and, when
warranted, will memorialize these agreements contractually.
Don Polly Product
Line. Don Polly Products are
currently distributed to over 650 distribution and retail accounts
in the United States, Mexico, the United Kingdom, Switzerland and
Australia. Like the Charlie’s Product Line, we will sell Don
Polly Products directly to retailers, as well as through the use of
distributors, third-party wholesalers and independent brokers. We
currently sell direct-to-consumer through a newly developed
e-commerce platform.
Online Sales
Charlie’s
Product Line and Don Polly Product Line.Currently, we do not currently sell our Charlie's
Products directly. However, we market Charlie's Products and sell
branded merchandise through our website,www.charlieschalkdust.com.
The Don Polly Product Line is offered for sale directly to
consumers under our Pachamama brand through our in-house,
e-commerce platforms on our websiteswww.enjoypachamama.comandwww.donpolly.com.
Sales and Marketing
Charlie’s and Don Polly
Product Lines.We have an
experienced, 10-person sales team, based in the United States, that
promotes our Charlie’s and Don Polly Products globally. Don
Polly has also engaged with several independent brokers to help
pursue mass channel retail. Salespeople seek to form long-term
“360” collaborative relationships with their clients,
partnering with them on sell-through efforts, providing access to
our marketing and creative teams and advising and educating them on
the Charlie’s and Don Polly Product Lines as well as other
industry-related issues. Currently, we advertise our products
primarily through direct customer engagement through social media
channels, print media, directed internet marketing, industry
tradeshows and collaborative events with retail partners.
Historically, participation at industry-specific tradeshows played
a large role in our marketing and distribution strategy. However,
in 2018 we began allocating resources to collaborative events, and
our marketing team is now focusing its efforts on fostering
relationships with key distributors and retailers by launching
customer-specific marketing campaigns, in-person visits to new
customer accounts and other forms of direct customer engagement. In
2020, approximately 20% of our sales were to customers outside of
the United States.
We
intend to strategically expand our advertising activities in 2021
and increase our public relations efforts to gain industry
awareness as well as editorial coverage for our brands. Some of our
competitors promote their brands through print media and through
celebrity endorsements and have substantial resources to devote to
such efforts. We believe that our and our competitors’
efforts have helped increase our sales, our product acceptance and
general industry awareness. In addition, we have allocated
resources and personnel to increase our sales in the markets
outside of the United States.
Source and Availability of Raw Materials
Charlie’s Product
Line.Our manufacturing
partners source the ingredients for our proprietary e-cigarette
liquids from a variety of sources, in accordance with our
formulations and quality specifications. We source our proprietary
e-liquids from multiple ISO Class 7 certified manufacturers in the
United States, which helps ensure their purity and quality. In an
effort to maintain consistency across our supply chain, we directly
purchase certain product packaging and are responsible for managing
various third-party supplier relationships.
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Don Polly Product
Line. For our full and
broad-spectrum CBD products, we currently source the individual
components and CBD from several suppliers. Each are delivered to
our primary manufacturer for storage prior to manufacturing. Our
primary manufacturer for isolate CBD products handles all raw
material sourcing internally.
Although
we own the formulas for the Charlie’s Products and the Don
Polly Products, we obtain certain components, such as packaging,
flavors and certain raw materials, from third party suppliers. None
of the third-party suppliers are considered to be material to the
business on a standalone basis and the components are readily
available from other suppliers on the market. However, given the
rapid growth of the vaping, e-cigarette and CBD industries, there
may be fluctuations in the availability of certain of the materials
we obtain from third-parties due to high demand from our
competitors. If any given supplier or distributor is lost or
unavailable in a specific region, and we are unable to contract
with alternative suppliers or distributors to provide the requisite
service(s) and product(s), we may be unable to fulfill customer
orders and our business could be materially harmed.
Competition
The
industries in which we operate are highly competitive.
Charlie’s Product Line. Our
Charlie's Product Line competes in a highly-fragment industry. Some
identifiable competitors of Charlie's include Naked100, Savage,
Humble, and Beard. Other brands such as Juul, Vuse, Group Mark Ten,
Green Smoke, Blu, Vaporfi, Njoy, Logic, V2, and Apollo all
participate in a different segment of the electronic cigarette
market which appeals to current smokers and recently-converted
electronic cigarette users.
In the
e-liquid space, new brands and products emerge frequently due to
low barriers to entry, despite the need to conform with FDA
guidelines. Companies that produce electronic cigarettes and
vaporizers, including Vaporfi, Atmos and Njoy, carry their own
flavor lines for the refillable market. More recently, the
emergence of disposable vape products from companies such as Puff
Bar have become popular in the market. Other brands like Mount
Baker Vapor focus on wide variety of choice and value, while other
brands like Charlie’s Chalk Dust carve out their identity
with branding, and more nuanced flavor combinations. The nature of
our competitors is varied as the market is highly fragmented and
the barriers to entry into the business are low.
Part
of our business strategy focuses on the establishment of
relationships with distributors and prominent branding focused on
performance and quality. We are aware that e-cigarette
competitors in the industry are also seeking to enter into such
relationships to try and create brand loyalty. In many cases,
competitors for such relationships may have greater management,
human, and financial resources than we do for attracting
distributor relationships. Furthermore, certain of our
electronic cigarette competitors may have better control
of their supply and distribution, are better established, larger
and better financed than our Company.
We plan
to compete primarily on the basis of product quality, brand
recognition, brand loyalty, service, marketing, and advertising. We
are subject to highly competitive conditions in all aspects of our
business. The competitive environment and our competitive position
can be significantly influenced by weak economic conditions,
erosion of consumer confidence, competitors’ introduction of
low-priced products or innovative products, cigarette excise taxes,
higher absolute prices and larger gaps between price categories,
and product regulation that diminishes the ability to differentiate
tobacco products.
We
also compete against “big tobacco” – U.S.
cigarette manufacturers of both conventional tobacco cigarettes and
electronic cigarettes like Altria Group, Inc., Lorillard, Inc. and
Reynolds American, Inc. We compete against big tobacco who offers
not only conventional tobacco cigarettes and
electronic cigarettes but also smokeless tobacco products
such as “snus” (a form of moist ground smokeless
tobacco that is usually sold in sachet form that resembles small
tea bags), chewing tobacco and snuff. Big tobacco has nearly
limitless resources, global distribution networks in place and a
customer base that is fiercely loyal to their brands. Furthermore,
we believe that big tobacco will devote more attention and
resources to developing and offering
electronic cigarettes as the market for
electronic cigarettes grows. Because of their
well-established sales and distribution channels, marketing
expertise and significant resources, big tobacco may be better
positioned than small competitors like us to capture a larger share
of the electronic cigarette market.
Don Polly Product
Line. The market for CBD-based
hemp products is rapidly growing and is highly competitive. The
competition consists of publicly and privately-owned companies,