VapeWild Continues Domestic Brick and Mortar Expansion in Texas

VapeWild Continues Domestic Brick and Mortar Expansion in Texas

Texas vapor company opens three stores near Headquarters

PR Newswire

ADDISON, Texas, Aug. 16, 2019 /PRNewswire/ — VapeWild, a Texas-based vapor manufacturer, retailer and distributor, announced Aug. 15 the opening of three brick and mortar locations in North Texas.

The initial North Texas stores are VapeWild Dallas at 17607 Midway Road Ste. 130 Dallas, Tx. 75287; VapeWild Garland located at 5219 Broadway Boulevard Ste. 105 Garland, Tx. 75043; and VapeWild Mesquite is located at 2029 N. Town East Boulevard Ste. 103 Mesquite, Tx. 75150. To see all VapeWild retail locations, visit our store locator.

VapeWild B&Ms further serve the region’s thousands of vapers in sync with the company’s casual, conservative branding. The move brings VapeWild to 19 retail locations globally and brings the retail unit to the same region as company headquarters.

Michael Virgin, Director of Retail Operations, anticipates interacting with the local vaping community. “VapeWild continues to innovate and expand. This next chapter is just the beginning as we bring our brand and amazing products to storefronts across the globe. North Texas is key in establishing our new retail footprint with more stores on the way.”

Established in 2014 in Texas, VapeWild produces low-cost, high-quality vaping products. The North Texas launch is the newest chapter for VapeWild Retail. The initiative added 30 positions to the existing 300+ workforce, between retail locations and support center staff – this figure is expected to rise incrementally.

Steve Turner, CEO, sees the initiative as the natural step to serve the consumer base. “We see retail expansion as a great opportunity to service our customers in conjunction with our e-commerce platform, wholesale distribution and 7-Eleven presence. We already have positive feedback from our Texas customers and they are excited about our expansion,” Turner recently said when describing the launch.

The stores serve consumers 21+, and provide instant access to a selection of e-liquid and vapor hardware products and accessories, with the level of service knowledge they expect from the brand.

Vapers 21+ are invited to the Dallas store grand opening, Aug. 24 from noon – 6 p.m.

For more information about the North Texas launch or this release, contact Mallory Patorno, VapeWild’s Public Relations Strategist, at marketing@vapewild.com.

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Related Links

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FDA proposes new required health warnings with color images for cigarette packages and advertisements to promote greater public understanding of negative health consequences of smoking

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FDA proposes new required health warnings with color images for cigarette packages and advertisements to promote greater public understanding of negative health consequences of smoking

PR Newswire

SILVER SPRING, Md., Aug. 15, 2019 /PRNewswire/ — Today, the U.S. Food and Drug Administration issued a proposed rule to require new health warnings on cigarette packages and in advertisements to promote greater public understanding of the negative health consequences of smoking. The proposed warnings, which feature photo-realistic color images depicting some of the lesser-known, but serious health risks of cigarette smoking, stand to represent the most significant change to cigarette labels in more than 35 years. When finalized, this rule would fulfill a requirement in the Family Smoking Prevention and Tobacco Control Act and complement additional important work the FDA is undertaking to advance the health of America’s families.

“As a cancer doctor and researcher, I am well aware of the staggering toll inflicted on the public health by tobacco products, which cause cancer, heart disease, stroke, emphysema and other medical problems. While most people assume the public knows all they need to understand about the harms of cigarette smoking, there’s a surprising number of lesser-known risks that both youth and adult smokers and nonsmokers may simply not be aware of, such as bladder cancer, diabetes and conditions that can cause blindness,” said Acting FDA Commissioner Ned Sharpless, M.D. “With these new proposed cigarette health warnings, we have an enormous public health opportunity to fulfill our statutory mandate and increase the public’s understanding of the full scope of serious negative health consequences of cigarette smoking. Given that tobacco use is still the leading cause of preventable disease and death in the U.S., there’s a lot at stake to ensure the public understands these risks. We remain committed to educating the public, especially America’s youth, about the dangers associated with using cigarettes and other tobacco products.”

About 34.3 million U.S. adults and nearly 1.4 million U.S. youth (aged 12-17 years) currently smoke cigarettes. Despite years of progress in tackling the leading cause of preventable disease and death in the United States, tobacco use — largely cigarette smoking and secondhand smoke exposure — kills about 480,000 Americans every single year. In fact, smoking kills more people each year than alcohol, HIV, car accidents, illegal drugs, murders and suicides combined, and over 16 million Americans alive today live with disease caused by cigarette smoking. Tobacco use also costs more than $300 billion a year in direct health care costs and lost productivity.

Health warnings first appeared on cigarette packages in 1966 and were most recently updated in 1984 to include the Surgeon General’s warnings that appear on packages and in advertisements today. However, research shows that these warnings have become virtually invisible to both smokers and nonsmokers — not attracting much attention and not leaving a very memorable impression of the risks of smoking. As outlined in the proposed rule today, the unchanged content of these health warnings, as well as their small size, location and lack of an image, severely impairs their ability to convey relevant information about the negative health consequences of cigarette smoking in an effective way to the public. Additionally, research shows substantial gaps remain in the public’s knowledge of the harms of smoking, and smokers have misinformation regarding cigarettes and the products’ negative health effects.

To address these gaps in public understanding, the FDA undertook a science-based approach to develop and evaluate the new proposed cigarette health warnings announced today. These warnings focus on serious health risks — such as bladder cancer, diabetes, erectile dysfunction and conditions that can cause blindness — that are lesser-known by the public as being negative health consequences of smoking. For example, current smokers have been found to have almost four times the risk of bladder cancer as never smokers, and it has been estimated that smoking is responsible for 5,000 bladder cancer deaths in the United States each year — yet research shows the public has limited awareness of bladder cancer as a consequence of smoking.

Participants in the FDA’s final consumer research study reported that the information provided by the 13 proposed cigarette health warnings was both new to them and that they learned something from the proposed warnings when compared to the current Surgeon General’s warnings on cigarette packages and in advertisements. Based on the findings, the proposed new warnings, each comprising a text statement and corresponding photo-realistic image in full color, include: 

  • WARNING: Tobacco smoke can harm your children.
  • WARNING: Tobacco smoke causes fatal lung disease in nonsmokers.
  • WARNING: Smoking causes head and neck cancer.
  • WARNING: Smoking causes bladder cancer, which can lead to bloody urine.
  • WARNING: Smoking during pregnancy stunts fetal growth.
  • WARNING: Smoking can cause heart disease and strokes by clogging arteries.
  • WARNING: Smoking causes COPD, a lung disease that can be fatal. (paired with two different images)
  • WARNING: Smoking reduces blood flow, which can cause erectile dysfunction.
  • WARNING: Smoking reduces blood flow to the limbs, which can require amputation.
  • WARNING: Smoking causes type 2 diabetes, which raises blood sugar.
  • WARNING: Smoking causes age-related macular degeneration, which can lead to blindness.
  • WARNING: Smoking causes cataracts, which can lead to blindness.

New cigarette health warnings, once finalized, would appear prominently on cigarette packages and in advertisements, occupying the top 50% of the area of the front and rear panels of cigarette packages and at least 20% of the area at the top of cigarette advertisements. The warnings would be required to appear on packages and in advertisements 15 months after a final rule is issued.

“Cigarette packages and advertisements can serve as an important channel for communicating health information to broad audiences that include both smokers and nonsmokers. In fact, daily smokers potentially see warnings on cigarette packages more than 5,100 times per year, and all members of the public, including adolescents, are exposed to cigarette advertisements in print and digital media, as well as in and around stores where cigarettes are sold,” said Mitch Zeller, J.D., director of the FDA’s Center for Tobacco Products. “The FDA undertook a comprehensive, science-based research and development process, and took the necessary time to get these new proposed warnings right by developing distinct and clear messages about the negative health consequences of smoking. We are especially encouraged that the research we conducted on these new proposed warnings demonstrated they would lead to improved understanding among both youth and adults, smokers and nonsmokers.”

The Tobacco Control Act requires the agency to include new warning labels specifically on cigarette packages and in advertisements. In June 2011, the agency published a final rule requiring color graphics depicting the negative health consequences of smoking to accompany nine textual warning statements specified in the Tobacco Control Act. However, the final rule was challenged in court by several tobacco companies and was ultimately vacated in August 2012 after the U.S. Court of Appeals of the District of Columbia held that the rule violated the First Amendment. In March 2013, the federal government announced its decision not to seek further review of the court’s ruling.

Since that time, the FDA has been conducting comprehensive research and development activities in support of the new proposed cigarette health warning rule announced today in order to satisfy the requirements of the Tobacco Control Act based on — and within the limits of — both science and the law. Following a lawsuit filed by several public health groups, a judge in the U.S. District Court for the District of Massachusetts issued an order in March directing the agency to publish the proposed rule by August 2019 and issue a final rule in March 2020.

The proposed rule will be open for public comments for 60 days through Oct. 15. Among other things, the FDA is seeking comments on the proposed cigarette health warnings and how many warnings should be selected for the final rule. Given the degree of public and stakeholder interest in this area, the FDA is also seeking proposals for alternative text and images, as well as scientific information to support a finding that the alternative text and images would advance the government interest in promoting greater public understanding of the negative health consequences of smoking.

In addition to the newly proposed cigarette health warnings, the FDA also continues to move forward on a number of separate measures to protect kids and significantly reduce tobacco-related disease and death as part of the agency’s comprehensive plan for tobacco and nicotine regulation.

For more information:

Tobacco Products; Required Warnings for Cigarette Packages and Advertisements

Cigarette Health Warnings

Web Feature: FDA Proposes New Health Warnings for Cigarette Packs and Ads

The FDA, an agency within the U.S. Department of Health and Human Services, protects the public health by assuring the safety, effectiveness, and security of human and veterinary drugs, vaccines and other biological products for human use, and medical devices. The agency also is responsible for the safety and security of our nation’s food supply, cosmetics, dietary supplements, products that give off electronic radiation, and for regulating tobacco products.

Media Inquiries: Michael Felberbaum, 240-402-9548, michael.felberbaum@fda.hhs.gov
Consumer Inquiries: 888-INFO-FDA

U.S. Food and Drug Administration (FDA) logo (PRNewsfoto/FDA)

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SOURCE U.S. Food and Drug Administration

Charlie’s Holdings, Inc. Announces Financial Results for 2019 Second Quarter and Year to Date

Charlie’s Holdings, Inc. Announces Financial Results for 2019 Second Quarter and Year to Date

The Company Reports Profitability from Operations, as Revenues for Nicotine and CBD Products Increase

PR Newswire

COSTA MESA, California, Aug. 15, 2019 /PRNewswire/ – Charlie’s Holdings, Inc. (the “Company” or “Charlies”) (OTC: CHUC), an industry leader in the premium e-cigarette and CBD products space, announced today that on August 14, 2019, it filed its Quarterly Report on Form 10-Q for the three and six months ended June 30, 2019.

“This filing represents our first public quarterly financial disclosure since completing our share exchange with Charlie’s Chalk Dust, LLC and the related financing on April 26, 2019. We are pleased to report that, following our transition to a public reporting company, we continue to achieve profitability and top line revenue growth from both our nicotine and CBD based products,” said Brandon Stump, CEO of Charlie’s. “We continue to be excited for our future and anticipate that we are now well positioned to achieve consolidated profits, as we have recognized certain non-recurring transaction related costs in our combined operating statement.” Mr. Stump continued, “our CBD product line showed great success from our initial launch in June of this year, and we plan to further diversify this product line and continue to create products that our customers will enjoy.”

Highlights from Second Quarter

  • In June of 2019 we successfully launched our first line of CBD products through our related consolidated company, Don Polly, LLC.  This launch allows us to now expand our business in both the nicotine-only e-cigarette vapor product line and hemp-derived, non-THC (less than 0.3%), CBD wellness products. 
  • Our CBD product launch included full spectrum CBD tinctures and topical products offered in a variety of flavors and strengths, as well as isolate CBD products in a line of CBD infused vapor products, all marketed under our Pachamama brand.
  • The newly launched CBD products generated $1,022,000 in revenue for the three months ended June 30, 2019.
  • Both the Company’s nicotine and CBD businesses were profitable for the three months ended June 30, 2019, generating combined revenues of $6,819,000.
  • The Company continues to make key investments in personnel, products and processes while remaining profitable from operations.

Financial Results for the Three Months Ended June 30, 2019

Consolidated revenue for the three months ended June 30, 2019 increased $1,332,000, or 24%, to $6,819,000, as compared to $5,486,000 for prior year period due to an increase in revenue of (i) $289,000 in our nicotine-based products sold by our wholly-owned subsidiary, Charlie’s Chalk Dust, LLC, (ii) $1,022,000 from sales of our CBD products sold through our related consolidated entity, Don Polly, LLC, which launched in June 2019, and (iii) $21,000 in sales from our legacy product, Bazi® All Natural Energy, which we intend to discontinue.

The Company had a consolidated net loss from operations of $3,211,000 for the three months ended June 30, 2019 due primarily to operating profits of $1,169,000 generated from sales of our nicotine-based and CBD products, offset by $4,381,000 attributable to non-recurring corporate and transaction related expenses incurred in connection with the share exchange with Charlie’s Chalk Dust, LLC and related financing transaction which closed on April 26, 2019.

Financial Results for the Six Months Ended June 30, 2019

Consolidated revenue for the six months ended June 30, 2019 increased $2,548,000, or 23%, to $13,466,000, as compared to $10,919,000 for same prior year period due to an increase in revenue of (i) $1,504,000 in our nicotine based products sold by our wholly-owned subsidiary, Charlie’s Chalk Dust, LLC, (ii) $1,022,000 from sales of our CBD products sold through our related consolidated entity, Don Polly, LLC, which launched in June 2019, and (iii) $21,000 in sales from our legacy product, Bazi® All Natural Energy, which we intend to discontinue.

The Company had a consolidated net loss from operations of $736,000 for the six months ended June 30, 2019 due, primarily, to operating profits of $3,644,000 generated from the sales of our nicotine-based and CBD products, offset by $4,381,00 attributable to non-recurring corporate and transaction related expenses incurred in connection with the share exchange with Charlie’s Chalk Dust, LLC and the related financing completed on April 26, 2019.

About Charlie’s Holdings, Inc.

Charlie’s Holdings Inc. (OTC: CHUC) is an industry leader in the premium e-cigarette and CBD liquid spaces through its subsidiary companies Charlie’s Chalk Dust, LLC and Don Polly, LLC. Charlie’s Chalk Dust produces high quality vapor products currently distributed in over 80 countries around the world. Charlie’s Chalk Dust has developed an extensive portfolio of brand styles, flavor profiles and innovative product formats. Launched in June of 2019, Don Polly, LLC formulates innovative hemp-derived, non-THC (less than 3%), CBD wellness products. Don Polly’s high quality CBD products derive from single-strain-sourced hemp extract and high purity CBD isolate crystals. Additional information about Charlie’s Chalk Dust can be found at www.charlieschalkdust.com.

Cautionary Note on Forward-Looking Statements – 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 ability to successful increase sales and enter new markets; the Company’s ability to manufacture and produce product 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 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 brand, as well as other risk factors included in the Company’s most recent quarterly report on Form 10-Q and other SEC filings. These forward-looking statements are made as of the date of this press release and were 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.

 

 

Appendix: 

 


CHARLIE’S HOLDINGS, INC.


CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)


(Unaudited)


June 30,


December 31,


2019


2018


ASSETS

Current assets:

Cash

$

5,120

$

304

Accounts receivable, net

1,980

711

Inventories, net

1,236

658

Prepaid expenses and other current assets

973

427

Total current assets

9,309

2,100

Non-current assets:

Property, plant and equipment, net

216

45

Right-of-use asset, net

748

Other assets

68

42

Total non-current assets

1,032

87


TOTAL ASSETS


$


10,341


$


2,187


LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable and accrued expenses

$

1,548

$

1,216

Derivative liability

7,584

Lease liabilities

249

Deferred revenue

142

180

Total current liabilities

9,523

1,396

Non-current liabilities:

Lease liabilities, net of current portion

519

Total non-current liabilities

519

Total liabilities

10,042

1,396


COMMITMENTS AND CONTINGENCIES

Stockholders’ equity:

Convertible preferred stock ($0.001 par value); 1,800,000 shares authorized

Series A, 300,000 shares designated, 206,248 and 0 shares issued and outstanding as of
June 30, 2019 and December 31, 2018, respectively

Series B, 1.5 million shares designated, 0 and 1.4 million shares issued and outstanding
as of June 30, 2019 and December 31, 2018, respectively

1

Common stock ($0.001 par value); 50 billion shares authorized; 18,936 million shares
and 141 million shares issued and outstanding as of June 30, 2019 and December 31,
2018, respectively

18,936

141

Additional paid-in capital

(17,749)

Retained earnings (accumulated deficit)

(888)

649

Total stockholders’ equity

299

791


TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY


$


10,341


$


2,187

 

 

 


CHARLIE’S HOLDINGS, INC.


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)


(Unaudited)  


For the three months
ended


For the six months
ended


June 30,


June 30,


2019


2018


2019


2018


Revenues:

Product revenue, net

$

6,819

$

5,486

$

13,466

$

10,919

Total revenues

6,819

5,486

13,466

10,919


Operating costs and expenses:

Cost of goods sold – product revenue

2,846

2,054

5,596

4,220

General and administrative

6,374

524

7,029

1,016

Sales and marketing

810

783

1,577

1,500

Total operating costs and expenses

10,030

3,361

14,202

6,736

Loss from operations

(3,211)

2,125

(736)

4,183


Other income:

Change in fair value of derivative liabilities

178

178

Total other income

178

178


Net income (loss)

$

(3,033)

$

2,125

$

(558)

$

4,183

Net earnings (loss) per share applicable to common
stockholders

 

Basic

$

(0.00)

$

0.02

$

(0.00)

$

0.03

Diluted

$

(0.00)

$

0.00

$

(0.00)

$

0.00

Weighted average shares used in computing basic
earnings (loss) per share

4,259,080

141,041

2,211,436

141,041

Weighted average shares used in computing diluted
earnings (loss) per share

4,259,080

14,104,089

2,211,436

14,104,089

 

 

 


CHARLIE’S HOLDINGS, INC.


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)


(Unaudited)


For the six months
ended

  June 30,


2019


2018


Cash Flows from Operating Activities:


Net (loss) income

$

(558)

$

4,183


Reconciliation of net (loss) income to net cash provided by operating activities:

Bad debt recoveries

(35)

Depreciation and amortization

12

10

Change in fair value of derivative liabilities

(178)

Amortization of operating lease right-of-use asset

46

Stock based compensation

3,077

Subtotal of non-cash charges

2,922

10


Changes in operating assets and liabilities:

Accounts receivable

(1,235)

(241)

Inventories

(578)

(440)

Prepaid expenses and other current assets

(546)

303

Other assets

(26)

(4)

Accounts payable and accrued expenses

332

(326)

Deferred revenue

(38)

130

Lease liabilities

(26)

Net cash provided by operating activities

247

3,615


Cash Flows from Investing Activities:

Purchase of property, plant and equipment

(182)

(5)

Net cash used in investing activities

(182)

(5)


Cash Flows from Financing Activities:

Proceeds from issuance of common stock and warrants in a private offering, net

23,160

Cash distributions to CCD Members

(18,409)

(3,402)

Net cash provided by (used in) financing activities

4,751

(3,402)

Net increase in cash

4,816

208

Cash, beginning of the period

304

655


Cash, end of the period

$

5,120

$

863


Supplemental disclosure of cash flow information

Cash paid for interest

$

$

Cash paid for income taxes

$

$


Supplemental disclosure of cash flow information

Effect of reverse merger 

$

2,378

$

Conversion of Series B convertible preferred stock

$

13,963

$

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

 

For more information, contact: 
Investor Relations
Charlie’s Holdings, Inc.
1007 Brioso Dr.
Costa Mesa, CA 92627
ir@charliesholdings.com

 

 

 

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SOURCE Charlie’s Holdings, Inc.