ITEM 7.MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
You should read the following discussion and analysis in
conjunction with our financial statements, including the notes
thereto contained in this Annual Report. This discussion contains
forward-looking statements that involve risks, uncertainties and
assumptions. Our actual results may differ materially from those
anticipated in these forward-looking statements as a result of a
variety of certain factors, including those set forth under
“Risk Factors Associated with Our Business” and
elsewhere in this Annual Report.
Overview
Our objective is to become a significant 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 e-cigarette and vaping systems.
Charlie’s products are mostly produced domestically through
contract manufacturers for sale through select distributors,
specialty retailers and third-party online resellers throughout the
United States, as well as more than 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 wellness products containing
hemp-derived cannabidiol (“CBD”) and we currently intend to develop and
launch additional products containing hemp-derived CBD in the
future.
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Industry Specific Challenges
Beginning in late
2019, our industry experienced significant news stories and health
alerts related to flavored nicotine vaping, leading to some states
banning the sale of flavored nicotine products and causing the Food
and Drug Administration (“FDA”) to review its policies on
controlling the sale of these products. Initial research indicated
that a vitamin E acetate related compound could be causing the
health-related issues. On November 8, 2019, officials at the
Centers for Disease Control and Prevention (“CDC”) reported a breakthrough in
the investigation into the outbreak of vaping-related lung
injuries. The CDC's
principal deputy director, Dr. Anne Schuchat, in fact stated that
"vitamin E acetate is a known additive used to dilute liquid in
e-cigarettes or vaping products that contain THC”,
suggesting the possible culprit for the series of lung
injuries across the U.S. All of Charlie's e-liquid products are
tested by third party laboratories which have confirmed that none
of our products contain any vitamin E acetate orTetrahydrocannabinol
(“THC”).
However,
these developments have had a negative effect on our sales since
mid-September 2019 (see further discussion below) and therefore, in
response to these developments and while government regulators are
formulating future polices, management has adopted the following
plan of operation.
First, we plan to increase the sales of our CBD
related products, including topicals and ingestibles. We feel there
is a significant upside in the CBD space, and we have begun to
focus on numerous vertical markets for the sale of our isolate,
full and broad-spectrum products. These vertical markets include,
but aren't limited to the medical andwellness markets. We have also dedicated an
internal team as well as additional financial resources to increase
direct-to-consumer e-commerce sales of CBD
products.
Secondly,
we continue to see a significant opportunity for sales growth in
international markets for our e-liquid and other vapor products.
Presently, approximately 20% of our vapor product sales come from
the international market and we are well positioned to increase
those sales in the countries that we presently sell, and in
additional overseas markets, as we have already built an
international distribution platform.
Most
importantly, we feel that the e-liquid and other vapor products
will continue to be a significant growth opportunity, once all the
rightful regulatory changes have been made. We are continuing with
our plan to obtain marketing authorization for certain of our
products through the completion of a Premarket Tobacco Application
("PMTA"), which we
submitted in September 2020. Obtaining a marketing order from the
United States Food and Drug Administration (“FDA”) would, in our opinion, help to
remediate the disruption caused by any perceived health issues
related to vaping, and further position the Company as a trusted,
industry leader. We feel that a significant amount of our
competitors will not have the resources and/or expertise to
complete the extensive and costly PMTA process and that once
complete, we will be able to benefit from being one of only a
select group of companies operating in the flavored vapor products
space.
Impact of COVID-19
The outbreak of a novel strain of COVID-19
(“Coronavirus”) which was identified in Wuhan, China
around December 2019, has had a negative impact on the global
economy and the markets in which we operate. Beginning in March
2020, the Company transitioned nearly all employees to a remote
working environment for their safety and to protect the integrity
of Company operations. We have updated certain sales, accounting
and administrative processes, and corresponding information
technology platforms, in an effort to help facilitate the virtual
work environment in which we now operate. During 2020, we engaged
in periodic, informal testing of our business operations, and we do
not believe that our financial position, work efficiency and
overall operational integrity have been materially affected.
However, we recognize that a certain degree of employee enthusiasm,
teamwork, creativity, and support is normally generated by being
present at a physical location, and we believe that prolonged
remote working may have a negative impact over time on our
business, and on employee productivity. Our Denver, CO office and
Huntington Beach, CA warehouse locations have fully returned to on
premise status, while our corporate headquarters in Costa Mesa, CA
remains remote for most employees. We will continue to monitor the
COVID-19 situation in all regions we operate and will maintain
strict adherence to local health guidelines and mandates. We may
have to take further actions that we determine are in the best
interests of our employees or as required by federal, state, or
local authorities.
Supply Chain
Our
ability to manufacture products is dependent on the availability of
certain raw materials and components that our contract
manufacturers purchase from Europe and China. In February 2020, we
started to experience disruptions across several key areas of our
global supply chain. Our domestic and international contract
manufacturers source many of our high-quality flavorings from
suppliers located in Italy, a region that was severely affected by
COVID-19-related restrictions throughout most of 2020. Mandated
stay-at-home orders in this region ultimately caused increased
manufacturing lead times and delayed customer order deliveries for
certain of our products, resulting in revenue
declines.
We
have been successful in mitigating some of the supply chain risks
though bulk purchases of certain flavorings and components and
adjusting the production allocation amongst our contract
manufacturers. Shifting production to contract manufacturers in
regions with fewer restrictions and/or an enhanced ability to
procure larger supplies of raw materials has helped alleviate
disruptions in our supply chain.
If a
resurgence of COVID-19 and associated shutdowns were to occur in
Europe or China, this would likely have an adverse effect on our
ability to manufacture and sell our products due to related
shortages of materials and components. Depending on the severity of
any such future shutdowns, we could experience a materially
diminished ability to produce products and be exposed to
significantly longer lead times. This would result in delayed or
reduced revenue from the affected products in production and
potentially higher operating costs.
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Sales and Marketing
Our
sales and marketing efforts have also been affected by COVID-19.
Most of our sales through Charlie’s and Don Polly are to
resellers of our products, typically distributors or brick and
mortar retail locations. Stay-at-home mandates across the U.S. and
internationally created a significant challenge for these customers
to maintain continuity in their businesses, and therefore we
experienced lower sales volumes as a result. However, customers for
our vapor products have proven to be more resilient during these
challenging times and have been able to maintain more consistent
performance. The Company did experience increased order volume for
CBD wellness products through its ecommerce platform because of
consumers seeking alternative means to purchase our
products.
Historically, most
of our business-to-business sales and marketing efforts have been
generated through industry events in both the vapor products and
hemp-derived products spaces. Beginning in 2019, we also initiated
a program of in-store marketing events to help facilitate
relationship building and sell-through for our retail partners.
With the suspension of all trade shows and most business travel,
our new customer pipeline has been negatively impacted, which has
negatively affected and may continue to negatively affect our sales
in the coming quarters. In response, we have shifted our focus to
digital marketing campaigns aimed at customer engagement and
education. We also continue to allocate additional resources
towards certain key distributors and retail partners that are
better positioned to interact directly with our consumers and
continue growing our brands.
Risks and Uncertainties
The
Company operates in an environment that is subject to rapid changes
and developments in laws and regulations that could have a
significant impact on the Company’s ability to sell its
products. Federal, state, and local governmental bodies across the
United States have indicated that flavored e-cigarette liquid,
vaporization products and certain other consumption accessories may
become subject to new laws and regulations at the federal, state
and local levels. Beginning in September 2019, certain states
temporarily banned the sale of flavored e-cigarettes, and on
January 2, 2020, the FDA issued an enforcement policy effectively
banning the sale of flavored cartridge-based e-cigarettes marketed
primarily by large manufacturers without prior authorization from
the FDA. The application of any new laws or regulations that may be
adopted in the future, at a federal, state, or local level,
directly or indirectly implicating flavored e-cigarette liquid and
products used for the vaporization of nicotine could significantly
limit the Company’s ability to sell such products, result in
additional compliance expenses, and/or require the Company to
change its labeling and/or methods of distribution. Any ban of the
sale of flavored e-cigarettes directly limits the markets in which
the Company may sell its products. In the event the prevalence of
such bans and/or changes in laws and regulations increase across
the United States, or internationally, the Company’s
business, results of operations and financial condition could be
adversely impacted. In addition, the
Company is presently seeking to obtain marketing authorization for
certain of its nicotine-based e-liquid products. Our PMTA
applications were submitted in September 2020 on a timely basis,
which if approved, will allow the Company to continue to sell its
products in the United States. The Company is also seeking
additional financing to support potential future PMTA related
expenses and general working capital. There is no assurance that
regulatory approval to sell our products will be granted or that we
can raise the additional financing required, and if not, this could
have a significant impact on our sales.
On
March 11, 2020, the World Health Organization designated the
ongoing and evolving COVID-19 outbreak as a pandemic. The outbreak
has caused substantial disruption in international and U.S.
economies and markets as it continues to spread. The outbreak is
having a temporary adverse impact on our industry as well as our
business, with regards to certain supply chain disruptions and
sales volume. While the disruption from COVID-19 is currently
expected to be temporary, there is uncertainty around the
duration.
Recent Developments
Share Exchange
On April 26, 2019 (the “Closing
Date”), we entered into a
Securities Exchange Agreement with each of the former members
(“Members”) of Charlie’s, and certain direct
investors in the Company (“Direct
Investors”), pursuant to
which we acquired all outstanding membership interests of
Charlie’s beneficially owned by the Members in exchange for
the issuance by the Company of units, with such units consisting of
an aggregate of (i) 15,655,538,349 shares of common stock on an
as-converted basis (which includes the issuance of an aggregate of
1,396,305 shares of a newly created class of Series B Convertible
Preferred Stock, par value $0.001 per share
(“Series B
Preferred”), convertible
into an aggregate of 13,963,047,716 shares of common stock, issued
to certain individuals in lieu of common stock); (ii) 206,249
shares of a newly created class of Series A Convertible Preferred
Stock, par value $0.001 per share (“Series A
Preferred”), convertible
into an aggregate of 4,654,349,239 shares of common stock; and
(iii) warrants to purchase an aggregate of 3,102,899,493 shares of
common stock (the “Investor
Warrants”) (the
“ShareExchange”). As a result of the Share Exchange,
Charlie’s became a wholly owned subsidiary of the
Company.
Immediately prior to, and in connection with, the
Share Exchange, Charlie’s consummated a private offering of
membership interests that resulted in gross proceeds to
Charlie’s of approximately $27.5 million (the
“Charlie’s
Financing”). Katalyst
Securities LLC (“Katalyst”) acted as the sole placement agent in
connection with the Charlie’s Financing pursuant to an
Engagement Letter entered into by and between Katalyst,
Charlie’s and the Company on February 15, 2019, which was
amended on April 16, 2019 (“Amended Engagement
Letter”). As
consideration for its services in connection with the
Charlie’s Financing and Share Exchange, the Company issued to
Katalyst and its designees five-year warrants to purchase an
aggregate of 930,869,848 shares of common stock at a price of
$0.0044313 per share (the “Placement Agent
Warrants”). The Placement
Agent Warrants have substantially the same terms as those set forth
in the Investor Warrants.
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As additional consideration for advisory services
provided in connection with the Charlie’s Financing and the
Share Exchange, the Company issued an aggregate of 902.7 million
shares of Common Stock (the “Advisory
Shares”), including to a
member of the Company’s Board of Directors, pursuant to a
subscription agreement. The fair value of a share of common stock
was $0.0032 which is based upon a valuation prepared by the Company
on the date of the Share Exchange.
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.
Following the Share Exchange, Ryan Stump and Brandon Stump, the
founders of Charlie’s and the Company’s Chief Executive
Officer and Chief Operating Officer, respectively, held in excess
of 50% of the Company’s issued and outstanding voting
securities.
Following
the consummation of the Share Exchange, the business operations of
the Company consist of those of Charlie’s, which is
principally engaged in formulating, marketing and distributing
branded e-cigarette liquid and other products for use in
nicotine-only e-cigarette and vaping systems.
Launch of CBD 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. In the near
term, we expect to expand the hemp-derived CBD-based products line
to include additional CBD isolate products and THC-free, broad
spectrum hemp extract products currently in
development.
PachamamaTM
CBD products are currently available in the U.S., Mexico, U.K.,
Switzerland and Australia, and we expect to continue expanding both
our domestic and international distribution efforts.
Filing of Amended and Restated Charter; Automatic Conversion of
Series B Preferred
On June 28, 2019, we amended and restated our
Articles of Incorporation (the “Amended and Restated
Charter”) to (i) change
our corporate name to Charlie’s Holdings, Inc. and (ii)
increase the number of shares authorized as common stock from 7.0
billion to 50.0 billion shares. The Amended and Restated Charter
was approved by our Board of Directors and holders of a majority of
our outstanding voting securities on May 8, 2019, and the Amended
and Restated Charter was filed with the State of Nevada on June 28,
2019.
As
a result of the filing of the Amended and Restated Charter and the
increase of our authorized common stock to 50.0 billion shares,
all 1,396,305 outstanding shares of Series B Preferred
automatically converted into a total of 13,963,047,716 shares of
common stock in accordance with the Certificate of
Designations, Preferences and Rights of the Series B Convertible
Preferred Stock.
Default on Payment of Dividend
The
Company was required to pay a one-time dividend equal to eight
percent (8%) of the stated value of its Series A Preferred, equal
to $1,650,000 (“Dividend
Amount”), which Dividend Amount was required to be
paid in cash on or before April 25, 2020. The Company failed to pay
the required dividend and has requested that holders of more than
50% of the Series A Preferred issued and outstanding
(“Required
Holders”) consent to an amendment to the Series A
Preferred to allow the Company to pay such Dividend Amount in
shares of the Company’s Common Stock. To date, the Company
has not obtained such consent from the Required Holders. In the
event the Company is unable to obtain consents from the Required
Holders to pay the Dividend Amount in shares of Common Stock in
lieu of cash, or does not otherwise pay such Dividend Amount in
cash or obtain a waiver, any claims asserted by the holders of the
Series A Preferred could have a material adverse effect on the
Company’s financial condition.
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On
August 13, 2020, the Company received a formal notice of default
from a holder of its Series A Preferred requesting full payment of
dividends due and payable with respect to the Series A Preferred
held by such holder on or before August 23, 2020
(“Dividend
Default”). As disclosed, the aggregate amount of
dividends due and payable to holders of the Series A Preferred is
$1,650,000.
Small Business Administration Loan Programs
On April 30, 2020,
Charlie's, a wholly owned subsidiary of the Company, received
approval to enter into a U.S. Small Business Administration
("SBA")
Promissory Note (the "Charlie's
PPP Loan") with TBK Bank, SSB
(the "SBA
Lender"), pursuant to the
Paycheck Protection Program ("PPP")
of the Coronavirus Aid, Relief, and Economic Security Act (the
"CARES
Act") as administered by
the SBA (the "PPP
Loan Agreement").
The Charlie's PPP Loan provides for working capital to CCD in the
amount of $650,761. The Charlie's PPP Loan will mature on April 30,
2022 and will accrue interest at a rate of 1.00% per annum.
Payments of principal and interest will be deferred for six months
from the date of the Charlie's PPP Loan, or until November 30,
2020. Interest, however, will continue to accrue during this
time.
On April 14, 2020, Don
Polly also obtained a loan pursuant to the PPP enacted under the
CARES Act (the "Polly
PPP Loan" and together with the
Charlie's PPP Loan, the "PPP
Loans")) from Community
Banks of Colorado, a division of NBH Bank (the "Polly
Lender"). The Polly PPP Loan
obtained by Don Polly provides for working capital to Don Polly in
the amount of $215,600. The Polly PPP Loan will mature on April 14,
2022 and will accrue interest at a rate of 1.00% per annum.
Payments of principal and interest will be deferred for six months
from the date of the Polly PPP Loan, or until November 14, 2020.
Interest, however, will continue to accrue during this
time.
The aforementioned PPP Loans were made under the PPP enacted by
Congress under the CARES Act. The CARES Act (including the guidance
issued by SBA and U.S. Department of the Treasury) provides that
all or a portion of the PPP Loans may be forgiven upon request from
the respective borrower to the SBA Lender or the Polly Lender, as
the case may be, subject to requirements in the PPP Loans and under
the CARES Act.
On
February 19, 2021 Don Polly received notice from the Polly Lender,
that its PPP Loan was fully repaid, and its promissory note was
cancelled as a result of the loan forgiveness process set forth by
the U.S. Small Business Administration. There is no further action
required on the part of Don Polly to satisfy this
liability.
On June 24, 2020, SBA
authorized (under Section 7(b) of the Small Business Act, as
amended) an Economic Injury Disaster Loan
(“EID
Loan”) to Don Polly
in the amount of $150,000. Installment payments, including
principal and interest of $731 monthly will begin twelve months
from date of the EID Loan. The balance of principal and interest
will be payable thirty years from the date of the EID Loan and
interest will accrue at the rate of 3.75% per
annum.
PMTA Submission
During
the quarter ended September 30, 2020, the United States Food and
Drug Administration's ("FDA") Center for Tobacco Products
informed us that our PMTA has received a valid submission tracking
number, passed the FDA’s filing review phase, and recently
entered the substantive review phase. To date, Charlie’s has
invested over $4.4 million for our initial PMTA submission. We
engaged a team of more than 200 professionals, including doctors,
scientists, biostatisticians, data analysts, and numerous contract
research organizations to create our comprehensive PMTA submission.
This news highlights our progress toward achieving full regulatory
compliance and our goal of providing customers with a trusted
product portfolio. We are confident that during the substantive
review phase of the PMTA process, the FDA will recognize that our
submission is both distinguished and suitable for
approval.
Red Beard Holdings, LLC Note Payable
On
April 1, 2020, the Company, Charlie's and its VIE, Don Polly,
issued a secured promissory note (the "Red Beard Note") to one of the
Company's largest stockholders, Red Beard Holdings, LLC
("Red Beard") in the
principal amount of $750,000 (the "Principal Amount"), which Note is
secured by all assets of the Company pursuant to the terms of a
Security Agreement entered into by and between the Company and Red
Beard (the "Red Beard Note
Financing").
The Red
Beard Note required the payment of the Principal Amount and
guaranteed minimum interest in the amount of $75,000 on or before
the earlier date of (i) a Liquidity Event, as defined under the
terms of the Red Beard Note; or (ii) October 1, 2020. In addition, if there
was an occurrence of an event of default, then, in addition to the
guaranteed minimum interest, the Principal Amount and unpaid
interest and unpaid other amounts under the Red Beard Note shall,
at the election of the Red Beard in its sole and absolute
discretion, bear interest at the lesser of a rate equal to 20% per
annum or the maximum default rate. Such interest would accrue daily
commencing on occurrence of such event of default until payment in
full of the Principal Amount, together with all accrued and unpaid
interest and other amounts which may become due hereunder, has been
made.
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On
August 27, 2020, the Company’s Board of Directors, entered
into Amendment No. 1 to Secured Promissory Note and Security
Agreement (“Amended Red
Beard Note”), by and between the Company and Red
Beard. Pursuant to the Amended Red Beard Note, the terms of the Red
Beard Note held by Red Beard were amended as follows (i) the
Principal Amount under the Red Beard Note was increased from
$750,000 to $1,400,000 and (ii) the guaranteed minimum interest due
upon maturity of the Red Beard Note was increased from $75,000 to
$100,000. All other terms of the respective Red Beard Note remain
in full force and effect.
On
September 30, 2020, the Company’s Board of Directors entered
into Amendment No. 2 to Secured Promissory Note and Security
Agreement (“Second Amended
Red Beard Note”), by and between the Company and Red
Beard. The Red Beard Note, as amended by Amendment 1, was further
amended by the Second Amended Red Beard Note to amend the
definition of the “Maturity Date” in the Red Beard Note
to mean November 1, 2020.
On
October 29, 2020, the Company entered into Amendment No. 3
("Third Amended Red Beard
Note"), by and between the Company and Red Beard. The terms
of the Second Amended Red Beard Note held by Red Beard have been
amended to revise the maturity date from November 1, 2020 to
December 1, 2020. Furthermore, Red Beard has agreed to waive
certain rights upon the occurrence of an Event of Default, as
defined in the Amended Red Beard Note, which was triggered by the
Company’s receipt of that certain notice of default, dated
August 13, 2020, from certain holders of the Company’s Series
A Preferred.
On
December 1, 2020, the Company entered into Amendment No. 4 to
Secured Promissory Note and Security Agreement (“Fourth Amended Red Beard Note”),
by and between the Company and Red Beard. The Fourth Amended Red
Beard Note was retroactively effective as of December 1, 2020,
therefore avoiding an event of default. The terms of the Third
Amended Red Beard Note have been amended to revise the maturity
date from December 1, 2020 to January 1, 2021, and the guaranteed
minimum interest has been increased from $100,000 to
$125,000.
On
January 19, 2021, the Company entered into Amendment No. 5 to
Secured Promissory Note and Security Agreement (“Fifth Amended Red Beard
Note”), by and between the Company and Red Beard. The
Fifth Amended Note is retroactively effective as of January 1,
2020. The terms of the Amended Note held by Red Beard have been
amended to revise the maturity date from January 1, 2021 to
February 15, 2021, and the guaranteed minimum interest has been
increased from $125,000 to $150,000. Pursuant to the Fifth Amended
Red Beard Note, Red Beard agreed to waive its rights to declare a
default under the Red Beard Note due to the Dividend
Default.
On
March 24, 2021, the Company and Red Beard entered into a
Satisfaction and Release (the "Red
Beard Release"), pursuant to which the Company made a
payment to Red Beard in the amount of $1.55 million in exchange for
an acknowledgment of satisfaction and full release of the Company
by Red Beard from liability and obligations arising under the Red
Beard Note.
Basis of Presentation
The consolidated financial statements contained
within this Annual Report and the disclosure in this
Management’s Discussion and Analysis of Financial Condition
and Results of Operations with respect to the years ended December
31, 2020 and 2019 have been prepared pursuant to the rules and
regulations of the Securities and Exchange Commission (the
“SEC”). In the opinion of the Company, all
adjustments, including normal recurring adjustments necessary to
present fairly the financial position, results of operations, and
cash flows of the Company for the interim period have been
included.
The
Share Exchange is accounted for as a reverse recapitalization under
U.S. GAAP because the primary assets of the Company were nominal
following the close of the Share Exchange. Charlie’s was
determined to be the accounting acquirer based upon the terms of
the Share Exchange and other factors including: (i) Charlie’s
stockholders and other persons holding securities convertible,
exercisable or exchangeable directly or indirectly for
Charlie’s membership units now own approximately 32%, on a
fully diluted basis, of the Company’s outstanding securities
immediately following the effective time of the Share Exchange,
(ii) individuals associated with Charlie’s now hold a
majority of the seats on the Company’s Board of Directors and
(iii) Charlie’s management holds all key positions in the
management of the combined Company.
The
disclosures in this Annual Report with respect to the years ended
December 31, 2020 and 2019, including the consolidated financial
statements contained herein, are based on Charlie’s
historical financial statements and the Company’s financial
activity beginning April 26, 2019, as adjusted, to give effect to
Charlie’s reverse recapitalization of the Company and the
Charlie’s Financing. In addition, from the period April 26,
2019 until December 2020, there were minimal costs and revenue
associated with the Bazi product line which are included in the
consolidated financial statements. We do not intend to continue to
produce and sell the Bazi product line, and these costs and
expenses are nominal and will continue to be so in the future. The
operating results of Don Polly for the year ended December 31, 2020
are also included.
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Historical
financial information presented prior to April 26, 2019 is that of
Charlie’s only, while financial information presented after
April 26, 2019 includes Charlie’s, Don Polly, Bazi Drinks and
the Company, which includes the transactions associated with the
Share Exchange and Charlie’s Financing completed prior to the
Share Exchange, along with ongoing corporate costs.
Results of Operations for the Year Ended December 31, 2020 Compared
to the Year Ended December 31, 2019
For the years ended
December 31, Change
($ in thousands)
Revenues: