Charlie’s Holdings reported increased revenue, gross profit, gross margin and cash balance in the first quarter of 2021.
Revenue decreased 1 percent year-over-year to $4.36 million but increased 3 percent from the fourth quarter of 2020. Gross profit decreased 1 percent year-over-year to $2.42 million but increased by more than 14 percent from the 2020 fourth quarter. Gross margin remained at 55 percent year-over-year and expanded 5 percent from the fourth quarter of 2020.
“Though 2020 was a difficult year for our entire industry, Charlie’s financial performance turned the corner in the first quarter of 2021,” said Charlie’s CEO Brandon Stump in a statement. “Incorporating a right-sized cost structure, strengthened balance sheet and launch of Pachamama Disposables, the company achieved growth in both revenue and gross margin versus the last quarter of 2020. Most importantly, we feel confident that Charlie’s is now positioned for accelerated growth going forward.”
On April 1, 2021, Charlie’s hired Henry Sicignano III as president to spearhead business strategy and capital markets initiatives. Sicignano previously served as president and CEO of 22nd Century Group.
Sicignano will work closely with Charlie’s CEO Brandon Stump to develop and execute business strategy in the rapidly changing electronic nicotine-delivery system marketplace.
So confident are we in Charlie’s future, my brother Ryan and I invested $3 million in Charlie’s common stock last quarter.
“We are very pleased about the recent addition of Henry Sicignano as our president,” said Stump. “His past successes—in both his initiatives to provide adult smokers with alternatives to traditional combustible cigarettes and his experience growing and uplisting a public company—will prove invaluable to Charlie’s.
“So confident are we in Charlie’s future, my brother Ryan and I invested $3 million in Charlie’s common stock last quarter. We believe that Charlie’s is well on its way to emerging as America’s No. 1 premium nicotine-based e-cigarette company.”