v3.26.1
Note 7 - Discontinued Operations - Don Polly, LLC
6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE 7 – DISCONTINUED OPERATIONS - DON POLLY, LLC

 

Don Polly is a Nevada limited liability company that is owned by entities controlled by Ryan Stump, a current executive officer of the Company, and a consolidated variable interest for which the Company is the primary beneficiary. Until its operations were discontinued, Don Polly marketed and distributed third-party product lines.

 

In October 2025 the Company’s Board of Directors unanimously approved a resolution to discontinue sales of all hemp/CBD-related products and to close permanently its Don Polly division.

 

On December 31, 2025, Don Polly entered into the Assignment Agreement, pursuant to which Don Polly transferred ownership of all of its right, title, and interest in, as well as custody and control of, its assets to Charlie’s. The Company received no cash consideration related to the assignment.

 

The following information presents the major classes of line items constituting the loss from discontinued operations of Don Polly in the consolidated statements of operations for the three and six months ended June 30, 2026 and 2025 (amount in thousands):

 

   

For the Three Months Ended

   

For the Six Months Ended

 
   

June 30,

   

June 30,

 
   

2026

   

2025

   

2026

   

2025

 

Product revenue, net

  $ -     $ 783     $ -     $ 1,511  

Cost of goods sold - product revenue

    -       605       -       1,191  

Gross profit

    -       178       -       320  

Operating expenses:

                               

General and administrative

    -       52       -       100  

Sales and marketing

    -       46       -       87  

Research and development

    -       3       -       3  

Total operating expenses

    -       101       -       190  

Income from operations

    -       77       -       130  

Interest expense

    -       (2 )     -       (3 )

Income from discontinued operations, before income tax

    -       75       -       127  

Income tax provision

    -       (38 )     -       (38 )

Income from discontinued operations, net of tax

  $ -     $ 37     $ -     $ 89