Charlie’s Bets on Age-Gating and 678 PMTA Assets as U.S. Vape Enforcement Landscape Shifts

Sep.11
Charlie’s Bets on Age-Gating and 678 PMTA Assets as U.S. Vape Enforcement Landscape Shifts
Charlie’s Holdings said in its latest shareholder letter that it is moving to commercialize PACHA products and monetize its PMTA assets as the FDA changes enforcement priorities for unauthorized ENDS products. Thirty PACHA SKUs were previously tentatively identified for a proposed public list of products that the FDA generally does not intend to prioritize for enforcement. Charlie’s is also preparing test-market sales of age-gated flavored disposables and says it currently holds 678 PMTA-related product assets while seeking additional strategic transactions and partnerships.

Key Points

  • Charlie’s says 30 PACHA products were tentatively identified for a proposed FDA public webpage covering products generally not prioritized for enforcement; the status is not marketing authorization.
  • The company says it has tens of thousands of completed age-gated PACHA disposable vapes and a test-market purchase commitment from a major U.S. vape retailer.
  • Charlie’s currently reports 678 PMTA-related product assets and plans to pursue regulatory development, partnerships and transactions around the portfolio.
  • Reynolds’ rollout of unauthorized Vuse Pro products provides another corporate response to the new enforcement framework, while the FDA is also incorporating those priorities into import enforcement.

2Firsts

September 11, 2026

According to a shareholder letter issued by Charlie’s Holdings on September 9, 2026, the company is moving to commercialize PACHA vaping products and develop its remaining PMTA assets, with age-verification technology, test-market sales and partnerships with major tobacco companies forming part of its strategy.

The moves come after the U.S. Food and Drug Administration reset enforcement priorities for certain unauthorized vaping products earlier this year. For Charlie’s, those regulatory changes are beginning to translate into decisions on products, regulatory assets and strategic transactions.

30 PACHA Products Tentatively Identified for Proposed Non-Priority Webpage

Charlie’s said the FDA previously notified the company that 30 PACHA products had been tentatively identified for inclusion on a proposed public webpage.

The webpage would identify certain products for which the FDA generally does not intend to prioritize enforcement of premarket authorization requirements.

Charlie’s has also stated in regulatory filings that such status does not constitute FDA marketing authorization, does not prevent case-by-case enforcement and does not indicate that the underlying PMTAs will ultimately be granted.

The FDA’s May 2026 enforcement guidance established more detailed priorities for certain ENDS and nicotine pouch products marketed without premarket authorization.

Certain products with pending PMTAs that have reached specified stages of review may generally face lower enforcement priority.

For non-tobacco-flavored ENDS, applications must also contain sufficient information for the FDA to assess whether the product meets the applicable public-health standard.

Age-Gated PACHA Products Prepared for Test-Market Sales

Charlie’s is also incorporating age-verification technology into its PACHA commercialization strategy.

The company said it has received tens of thousands of completed age-gated PACHA disposable vaping products and secured a test-market purchase commitment from a major U.S. vape retailer.

Shipments are expected to begin after final testing of the related consumer application is completed.

Charlie’s has previously said it intends to use IKE-related age-gating technology to collect real-world compliance data and supplement certain PACHA PMTAs with age-verification information.

The strategy extends age verification beyond point-of-sale checks into product design, market testing and regulatory submissions.

When the FDA authorized the first non-tobacco, non-menthol flavored Glas ENDS products earlier this year, the devices also incorporated app-based age and identity verification.

Charlie’s has pointed to that development as relevant to its own regulatory and commercialization strategy for flavored ENDS.

678 PMTA Assets Become a Strategic Focus

Charlie’s currently reports 678 PMTA-related product assets.

The company says at least 200 remain in Filing Review without having received marketing denial orders.

The portfolio covers multiple disposable vape formats and e-liquid products across different capacities and configurations.

Charlie’s said in the shareholder letter that it will continue seeking partnerships with large global tobacco companies as it looks to develop and monetize those regulatory assets.

The company has already completed one such transaction.

In 2025, Charlie’s sold 16 PACHA synthetic-nicotine products and related PMTA assets to R.J. Reynolds Vapor Company for $7.5 million in cash, with up to an additional $4.2 million in contingent payments.

The transaction shows that, for a smaller vaping company such as Charlie’s, PMTA assets can serve not only as a route to self-commercialization but also as assets for sale, licensing or strategic partnerships.

FDA Guidance Is Beginning to Shape Corporate Decisions

Charlie’s latest moves provide a corporate example of how the FDA’s enforcement reset is affecting commercial strategy.

For years, the U.S. vaping market was often discussed in binary terms: products with FDA marketing authorization and products without it.

The new guidance does not change the legal status of unauthorized products, but it further distinguishes how the FDA intends to prioritize limited enforcement resources.

That creates a more differentiated operating environment. Certain products with pending PMTAs may face lower enforcement priority, while products without PMTA submissions, counterfeit products, products involving false declarations or those presenting significant youth-appeal concerns remain higher enforcement priorities.

For companies, pending PMTA status, stage of review, age-verification measures and youth-risk controls are increasingly affecting commercial decisions alongside final marketing authorization.

Reynolds Pursues Another Route With Vuse Pro

Large tobacco companies are also taking steps under the changing enforcement environment.

R.J. Reynolds Vapor Company has begun selling Vuse Pro devices and Peach, Berry, Watermelon and Fresh Mint pods in selected U.S. markets.

Those products have not received FDA marketing authorization.

Vuse Pro incorporates age-verification technology, while Reynolds has paired the rollout with ID scanning, purchase limits and retailer compliance measures.

Reynolds submitted a PMTA for the age-gated Vuse Pro platform in 2024.

BAT has also cited U.S. regulatory and enforcement actions in investor materials as a factor supporting growth in its U.S. New Categories business.

Charlie’s and Reynolds differ substantially in scale and resources, but both are advancing commercial strategies involving products without final FDA marketing authorization under the new enforcement-priority framework.

Lower-Priority Treatment Also Means Enforcement Resources Are Being Reordered

When the FDA issued its May guidance, it also said it would continue focusing on products and operators presenting the greatest enforcement concerns, including products without PMTA submissions, counterfeits, false declarations, serious violations and products with substantial youth appeal.

That framework is now entering operational enforcement.

The FDA updated Import Alert 98-07 in September to require field personnel to consider the May 2026 enforcement priorities when deciding whether unauthorized ENDS products should be detained without physical examination.

Where a product may fall within the lower-priority framework, the matter can be referred to the Center for Tobacco Products for further review.

The update shows that the new priorities are moving beyond policy statements and into import enforcement procedures.

For the U.S. vaping market, that creates two simultaneous effects: certain pending products may receive limited enforcement discretion, while the FDA can focus more resources on products outside that framework.

Charlie’s Offers a Corporate Signal of a Changing Regulatory Environment

Charlie’s remains a relatively small vaping company.

It reported second-quarter 2026 revenue of about $3.8 million, up 116% from a year earlier. First-half revenue was about $8.6 million, although the company continued to report operating and continuing-operation losses.

That financial position makes commercialization and monetization of its PMTA portfolio particularly important.

The latest shareholder letter therefore represents more than an optimistic assessment of the regulatory environment.

From reactivating PACHA-related PMTA assets and preparing age-gated test sales to seeking partnerships with large tobacco companies, Charlie’s is converting the FDA’s enforcement changes into specific business actions.

Reynolds’ Vuse Pro rollout provides another corporate example.

U.S. vaping companies are beginning to respond in different ways to the FDA’s new enforcement-priority framework, with regulatory changes now feeding into product launches, compliance technology, PMTA asset strategies and corporate partnerships. The next issue to watch is not only which products receive lower-priority treatment, but whether the FDA increasingly concentrates enforcement on unauthorized products outside that framework.

Follow 2Firsts for timely updates on global tobacco and nicotine industry developments, corporate strategy and market trends.

Cover Image: Charlie’s Holdings


Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

Russia’s Vape Device Labeling Regime Enters Force: Registration Starts in September, Mandatory Coding in December
Russia’s Vape Device Labeling Regime Enters Force: Registration Starts in September, Mandatory Coding in December
Russia's digital labeling regime for reusable e-cigarettes and similar personal vaping devices entered its first mandatory phase in September 2026. From September 1, manufacturers, importers and other market participants must register with the national Chestny ZNAK tracking system. From December 1, newly manufactured and imported covered devices will be required to carry digital identification codes and be reported as entering circulation. Russia has also issued new operational guidance for imports, marking the transition from a voluntary pilot to phased mandatory implementation.
Sep.15
Trump Names Darrell Scott as CDC Tobacco Health Adviser, Citing Tobacco Risks and Harm-Reduction Solutions
Trump Names Darrell Scott as CDC Tobacco Health Adviser, Citing Tobacco Risks and Harm-Reduction Solutions
U.S. President Donald Trump has named Pastor Darrell Scott to serve as an adviser on tobacco health issues on the Centers for Disease Control and Prevention’s Advisory Committee to the Director. Trump said Scott would focus on the burden of tobacco-related disease and help examine ways to protect Americans from dangerous tobacco products while supporting solutions that reduce harm. Scott’s public career has largely centered on faith leadership, community advocacy and politics.
Sep.02
U.S. Expands Illicit Vape Enforcement as ATF Brings PACT Act Powers Into Trade Fraud Task Force
U.S. Expands Illicit Vape Enforcement as ATF Brings PACT Act Powers Into Trade Fraud Task Force
The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives said on September 23 that it has joined the interagency Trade Fraud Task Force to strengthen enforcement against illegal, misdeclared and smuggled vape and tobacco products. ATF will bring its authority under the Prevent All Cigarette Trafficking Act into the task force, including registration, reporting, shipping and record-inspection requirements covering interstate sales of electronic nicotine delivery systems. ATF said the move will strengthen its ability to trace illicit products from U.S. points of entry through domestic trafficking and distribution networks.
News
Sep.28 by 2Firsts Perspectives
JTI Proposes 25-Cent Irish Cigarette Tax Increase, Says It Could Raise €45 Million
JTI Proposes 25-Cent Irish Cigarette Tax Increase, Says It Could Raise €45 Million
Japan Tobacco International's Irish business has proposed a €0.25 tax increase on a pack of 20 cigarettes in its pre-Budget 2027 submission, below the €0.50-or-more increases typically imposed in recent Irish budgets. JTI says the proposal could generate around €45 million in additional Exchequer revenue while limiting further movement toward illicit and non-Irish-tax-paid tobacco. Revenue's existing estimate for a comparable €0.25 increase, including pro-rata rises on other tobacco products, is about €18 million for a full year.
JTI
Sep.18 by 2Firsts Perspectives
Reynolds Seeks to Join Altria Lawsuit Challenging FDA PMTA Rule and Calculation of 180-Day Deadline
Reynolds Seeks to Join Altria Lawsuit Challenging FDA PMTA Rule and Calculation of 180-Day Deadline
Three R.J. Reynolds companies are seeking to intervene in a lawsuit filed by Altria subsidiaries Helix Innovations and NJOY challenging the FDA's 2021 PMTA final rule. The companies dispute how the agency uses Acceptance and Filing reviews and completeness determinations to establish when the Tobacco Control Act's 180-day decision period begins. Reynolds has also linked prolonged PMTA reviews to competition from unauthorized vaping products. The FDA, meanwhile, has been accelerating reviews and reducing its backlog.
Sep.14
Special Report | Altria Subsidiaries Sue FDA to Vacate 2021 PMTA Rule as Agency Moves to Speed Reviews
Special Report | Altria Subsidiaries Sue FDA to Vacate 2021 PMTA Rule as Agency Moves to Speed Reviews
2Firsts reviewed the original federal court complaint filed by Altria subsidiaries Helix Innovations and NJOY on Sept. 2 challenging FDA’s 2021 PMTA rule. The lawsuit questions whether FDA’s review process complies with the Tobacco Control Act’s 180-day timeline, even as the agency moves to accelerate PMTA reviews and issues more marketing orders. Drawing on the complaint, FDA records, government audits and recent court rulings, 2Firsts examines the legal arguments, supporting evidence and potential implications for the U.S. tobacco review system.
Regulations
Sep.03