Core Insights - The company is facing significant financial challenges, including a 21% decrease in net sales and a drop in gross margin from 32% to 23% year-over-year, primarily due to weak consumer confidence and pricing pressures in the lab-grown diamond market [6][3][5] - Increased operating expenses, which rose by 13% in the fiscal third quarter, are straining profitability despite investments in sales and marketing [1][3] - The competitive landscape in the jewelry market is intensifying, with major players increasing their presence in the lab-grown diamonds and moissanite segments, which may limit the company's market share and profitability [9][3] Financial Performance - The company's cash flow used in operations increased to $2.1 million in the third quarter of fiscal 2024, up from $0.8 million in the same quarter a year ago, indicating potential liquidity issues [8] - The stock is trading at a significant discount compared to industry and sector averages, reflecting low market confidence in the company's near-term prospects [5][7] Strategic Initiatives - The company is investing in e-commerce strategies, particularly enhancements to its website, to drive higher traffic and conversion rates [2] - A transition to a direct-to-consumer model is underway, exemplified by the launch of a B2B trade portal, which aims to eliminate intermediaries and offer competitive pricing [10] - An exclusive partnership with the International Gemological Institute is expected to enhance product transparency and consumer trust [10]

Core Points - Charles & Colvard, Ltd. has regained compliance with Nasdaq's minimum bid price continued listing requirement, with the minimum bid price of its common stock being $1.00 per share or greater for the last 10 consecutive business days as of May 31, 2024 [4] - The company specializes in moissanite and lab-grown diamonds, emphasizing ethical practices in fine jewelry production [5] Company Overview - Charles & Colvard, Ltd. is a globally recognized fine jewelry company founded in 1995, based in Research Triangle Park, North Carolina [5] - The company is the original creator of lab-grown moissanite, a rare gemstone formed from silicon carbide, and focuses on using exclusively Made, not Mined™ above-ground gemstones and 100% recycled precious metals [5] - The company's product lines include Forever One™ moissanite and Caydia® lab-grown diamond brands, which are marketed as providing exceptional quality and value [5]

Core Insights - Charles & Colvard has formed a strategic alliance with the International Gemological Institute (IGI) to provide comprehensive grading reports for moissanite gemstones and jewelry, enhancing consumer confidence and brand integrity in a competitive market [1][2][4] Company Overview - Charles & Colvard, Ltd. specializes in lab-grown moissanite and diamonds, emphasizing ethical sourcing and sustainability through its "Made, not Mined™" approach [7] - The company was founded in 1995 and is based in Research Triangle Park, North Carolina, offering products under the Forever One™ and Caydia® brands [7] Industry Context - The collaboration with IGI aims to address the challenges of misinformation and counterfeit products in the moissanite market, providing standardized grading measures similar to the 4Cs used in diamond grading [2][3][4] - IGI has nearly 50 years of experience in the gemological field, operating 30 laboratories and 19 education facilities globally, and is committed to reinforcing consumer trust in gemstone products [8][9] Product Offering - The grading reports will include unique identifiers for each gemstone, detailing quality characteristics and specific grading measures for moissanite, thereby ensuring authenticity and quality for consumers [2][3] - Initially, Forever One™ moissanite gemstone reports will be available to trade partners, with plans to expand availability to consumers later in the year [5] Upcoming Events - Both Charles & Colvard and IGI will participate in the JCK Show in Las Vegas from May 31 to June 3, 2024, showcasing their collaboration and products [6]

Cost of Goods Sold The decrease in total cost of goods sold for the nine months ended March 31, 2024 compared to the same period in 2023 was also primarily driven by the decreased sales of finished goods and loose jewels during the nine months ended March 31, 2024 in both of our Online Channels segment and Traditional segment. We experienced lower demand in our Online Channels segment as a result of lower finished jewelry product demand during the nine month period despite the calendar year-end 2023 holiday ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $5.3 million, down 21% compared to Q3 FY 2023, but showed a sequential improvement of 12 basis points from Q1 FY 2024 and 3 basis points from Q2 FY 2024 [6][12] - The net loss for Q3 2024 was $3.6 million or $0.12 loss per diluted share, an improvement from a net loss of $8.4 million or $0.28 loss per diluted share in the year-ago period [16] - Operating expenses increased by 13% from the year-ago quarter, with sales and marketing expenses also rising by 13% to $3.7 million [15][16] Business Line Data and Key Metrics Changes - Net sales for the traditional segment (wholesale and brick-and-mortar) totaled $1.2 million, representing 22% of total net sales compared to 30% in the previous year [13] - Online channels segment net sales totaled $4.1 million, representing 77% of total net sales, up 7% from a year ago [36] - Finished jewelry net sales represented 93% of total sales, up from 80% in the same quarter last year, while finished net sales in the traditional segment decreased by 71% [37] Market Data and Key Metrics Changes - Domestic sales from charlesandcolvard.com accounted for 98% of all sales in Q3, with international sales making up only 2% [14] - Inventory decreased by 24% for the quarter, reflecting the company's efforts to refine its jewelry offerings [9] Company Strategy and Development Direction - The company is focusing on penetrating the low-cost consumer market through website updates and increased marketing efforts, including partnerships with influencers [2] - A new wholesale portal, charlesandcolvarddirect.com, was launched to incentivize independent jewelers to buy directly, aiming to enhance competitiveness [3] - The company is rebranding its moissanite product line to Everbright to better position itself in the market [31] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about long-term value despite recent revenue declines, noting improvements in sequential quarters [6] - The company is addressing margin pressures by reviewing vendor agreements and managing advertising spend [7] - Management acknowledges challenges in the luxury market but believes in the potential of lab-grown gems as consumer awareness increases [30] Other Important Information - The company reported a gross margin of 23%, down from 32% in the previous year, primarily due to rising commodity prices and increased promotional pressures [38] - Working capital remained strong at $12.7 million, with $500,000 in short-term outstanding debt [17] Q&A Session Summary Question: Is the stock buyback program still in place? - Yes, the company has $4.5 million remaining in the repurchase program and management believes it is an opportunity at current prices [24] Question: Will management continue to buy back stock? - Management is focused on achieving profitability and is evaluating the return on advertising spend while considering stock buybacks [25][26] Question: Why draw on the credit facility with a high cash balance? - The company aims to maintain liquidity and has drawn $500,000 from the credit facility to ensure operational flexibility [66]

Financial Performance - Revenue decreased by 8% to $5.3 million compared to the quarter ended March 31, 2023[22] - Net sales from online channels segment decreased 41% to $2.0 million compared to the quarter ended March 31, 2023[21] - Net sales from traditional segment decreased 12% to $4.1 million compared to the quarter ended March 31, 2023[33] - Finished jewelry & loose jewel net sales decreased 71% to $0.4 million compared to the quarter ended March 31, 2023[22] - Gross profit was $1.2 million, with a gross margin of 23%[24] - Net loss was $(3.6) million[26] Expenses - Total operating expenses increased by 13% to $4.3 million compared to the quarter ended March 31, 2023[37] - Sales & marketing expenses increased by 13% to $1.2 million compared to the quarter ended March 31, 2023[37] Balance Sheet - Cash, cash equivalents, and restricted cash totaled $5.3 million[32] - Inventory decreased to $25.3 million[16] Strategic Initiatives & Market Conditions - The company is facing margin erosion due to rising commodity pricing, promotional pricing pressure, increased demand for Caydia lab grown diamonds, elevated shipping costs and other inflationary impacts[14] - Consumer confidence remains weak, but there's growing interest in lab-grown gemstones and responsibly-sourced jewelry[4]

Exhibit 99.1 CHARLES & COLVARD REPORTS THIRD QUARTER FISCAL YEAR 2024 FINANCIAL RESULTS Conference Call with Accompanying Slide Presentation Scheduled Today at 4:30 PM ET FOR IMMEDIATE RELEASE RESEARCH TRIANGLE PARK, N.C. – May 2, 2024 – Charles & Colvard, Ltd. (Nasdaq: CTHR) (the "Company"), a globally recognized fine jewelry company that specializes in moissanite and lab grown diamonds, reported financial results for the third quarter ended March 31, 2024 ("Third Quarter Fiscal 2024"). Management Commenta ...

RESEARCH TRIANGLE PARK, N.C., April 23, 2024 /PRNewswire/ -- Charles & Colvard, Ltd. (Nasdaq: CTHR) (the "Company"), a globally recognized fine jewelry company that specializes in moissanite and lab grown diamonds, will host an investor conference call and webcast presentation to discuss its financial results for the third quarter ended March 31, 2024 ("Third Quarter Fiscal Year 2024") at 4:30 p.m. ET on Thursday, May 2, 2024. The Company will release its financial results after market close on the same day ...

RESEARCH TRIANGLE PARK, N.C., April 9, 2024 /PRNewswire/ -- Charles & Colvard, Ltd. (Nasdaq: CTHR) (the "Company"), a globally recognized fine jewelry company specializing in lab-created Made, Not Mined™ gems, is proud to announce its strategic partnership with American actress, Skyler Samuels, the Company's new brand ambassador. Charles & Colvard announces its strategic partnership with actress Skyler Samuels as its new brand ambassador. Post this “Everyone deserves a little sparkle in their life, and I ...

RESEARCH TRIANGLE PARK, N.C., April 2, 2024 /PRNewswire/ -- Charles & Colvard, Ltd. (Nasdaq: CTHR) (the "Company"), a globally recognized fine jewelry company specializing in lab-created Made, Not Mined™ gems, is proud to unveil its new digital B2B trade-portal, charlesandcolvarddirect.com. This portal will support the Company's significant shift away from its current distributor model, creating a pathway for tens of thousands of independent jewelers and retailers to purchase its loose gems directly from th ...