Charlie’s Holdings announced a partnership with IKE Tech to commercialize an AI‑powered, blockchain‑based age‑gating system for its SBX disposable vape line. The system will use IKE’s patented biometric BLE Bluetooth chip and a blockchain‑secured app to verify a user’s age before the device can be activated, thereby meeting FDA youth‑access requirements for electronic nicotine delivery systems.
The integration will embed the biometric chip into Charlie’s existing Metatine‑based SBX vapes, allowing the device to confirm a user’s age in real time. Metatine is a proprietary, non‑nicotine alkaloid that is not currently classified as nicotine under U.S. law, which means the SBX line is outside the scope of current FDA tobacco product jurisdiction and PMTA requirements. The age‑gating technology is therefore positioned for rapid deployment while the company’s other products remain in the regulatory review process.
The agreement grants Charlie’s a three‑year exclusivity period for age‑gated nicotine‑analogue products, giving the company a competitive moat in a market where convenience stores and other retailers are tightening age‑verification policies. By preventing underage activation, Charlie’s can reduce the risk of FDA enforcement actions and expand its distribution footprint, potentially opening new retail channels that were previously inaccessible.
Charlie’s has experienced rapid revenue growth in recent quarters—Q3 2025 revenue rose to $7.1 million, up 336% from $1.6 million in Q3 2024—while gross margins compressed from 38.8% to 24.9% during the same period. The partnership is expected to create a new revenue stream that could support further product development and market expansion, offsetting margin pressure and reinforcing the company’s shift away from regulated nicotine products toward its Metatine‑based portfolio.
"We believe age‑gating is both a responsible business practice and a significant competitive advantage for Charlie’s," said Ryan Stump, Chief Operating Officer. John Patterson, President of IKE Tech, added, "Partnering with Charlie’s allows us to deploy our age‑verification technology in the U.S. market ahead of standard PMTA timelines, leveraging the unique position of Metatine products."
IKE Tech has already met with the FDA regarding its age‑verification technology and has a pre‑premarket tobacco product application (PMTA) in progress for its “IKE BLE System on a Chip.” The partnership aligns with the company’s strategy to use technology to navigate regulatory challenges while expanding its product offerings.
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