Effective Date: 7 March 2026

Fathom and Fury Cigars (“Fathom and Fury,” “we,” “us,” or “our”) operates as a cigar and tobacco products retailer based in the State of North Carolina. This Licensing & Tax Notice explains, in plain language, how we approach business licensing, tobacco and sales tax compliance, and multistate “nexus” obligations for online orders. It is for general informational purposes only and is not tax or legal advice.

1. Business Location and Licensing

• Our business is organized and operated from North Carolina, and we are subject to North Carolina laws governing the sale of tobacco products, including applicable sales and use tax and tobacco excise tax requirements.
• Where required, we obtain and maintain the appropriate state and local licenses, permits, or registrations for the retail sale of tobacco products and other merchandise. This may include sales and use tax registration and, where applicable, tobacco‑related registrations or licenses.

If you have questions about how our North Carolina location affects your order, you may contact us using the details on our site.

2. Sales Tax, Use Tax, and Tobacco Taxes

2.1 Sales and Use Tax

• For orders shipped to addresses in states where we are registered and required to collect sales tax, we will calculate and collect applicable sales or use tax at checkout based on the shipping/billing address and current rates for that jurisdiction.
• In states where we are not required or registered to collect sales tax, we may not charge tax at checkout. In those cases, you may be responsible for reporting and paying any applicable use tax directly to your state or local tax authority, as required by law.

2.2 Tobacco Excise Taxes

• Tobacco products may also be subject to separate state or local excise taxes in addition to sales tax. Where we are required by law and registered to do so, we collect and remit these taxes on taxable sales.
• Some states may require end consumers to self‑report and pay tobacco excise or use taxes directly when the seller is not registered or required to collect them. You are responsible for complying with any such obligations in your jurisdiction.

3. What Is “Nexus” and Why It Matters

“Sales tax nexus” is the connection between a business and a state that creates an obligation for the business to register with that state and to collect and remit sales tax on taxable sales shipped into that state. Nexus can be created in different ways, including physical presence and “economic nexus.”

3.1 Physical Presence Nexus

• Physical presence means, for example, having an office, warehouse, employees, or inventory located in a state. If we establish physical presence in a state beyond North Carolina, we may be required to register and collect sales tax in that state as well.

3.2 Economic Nexus

• Following the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., most states now have “economic nexus” rules. These typically require remote (out‑of‑state) sellers to collect sales tax once they exceed certain thresholds of sales revenue and/or transaction counts into that state.
• Many states use thresholds such as $100,000 in gross sales into the state during the current or prior year; some also had a 200‑transaction threshold, though these rules can change over time.

3.3 North Carolina Economic Nexus (Our Home State)

• Because we are based in North Carolina, we are already subject to North Carolina registration and collection obligations for sales to North Carolina addresses.
• North Carolina also applies an economic nexus threshold for remote sellers making sales into the state, currently set at more than $100,000 in gross sales sourced to North Carolina during the current or previous calendar year, with the former 200‑transaction threshold removed.

4. Our Multistate Compliance Approach

• We monitor our sales activity by state to determine where our business has established nexus (either through physical presence or by meeting economic thresholds) and where we are required to register, collect, and remit sales or use tax, and where relevant, tobacco excise taxes.
• When we determine that we have nexus in a state and are required to collect tax there, we will register with that state’s tax authority and begin collecting applicable sales and/or excise taxes on orders shipped to addresses in that state.
• Because tax laws and thresholds can change, and because our sales footprint may expand over time, the list of states in which we collect tax at checkout may change. The presence of tax on your order does not necessarily mean it was taxed in the past, and the absence of tax on a current order does not guarantee that tax will not be due in the future if requirements change.

5. Customer Responsibilities

• You are responsible for knowing and complying with the tax laws of your state or locality, including any requirements to report and pay use tax or tobacco excise tax when we are not required to collect it at checkout.
• If your state requires consumers to self‑report out‑of‑state purchases of taxable goods, including tobacco products, you may need to include your purchases from us when filing your state income tax return or a separate use tax return.

For specific questions about your personal tax obligations, consult your tax advisor or your state’s department of revenue.

6. No Tax or Legal Advice

This Licensing & Tax Notice is intended to provide general information about how we handle licensing and taxes; it does not constitute legal, tax, or accounting advice. Tax treatment can depend on your individual circumstances and the laws of your state, which may change over time. You should consult with a qualified tax professional if you have questions about how purchases from us affect your own tax obligations.

7. Changes to This Notice

We may update or modify this Licensing & Tax Notice from time to time to reflect changes in law, our business operations, our nexus footprint, or guidance from tax authorities. When we make changes, we will update the Effective Date above. Your continued use of our website and services after changes are posted constitutes your acknowledgment of the updated information.