Nasdaq: CTHR 1 CHARLES & COLVARD Q2 Fiscal 2021 Earnings Conference Call Presentation Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements expressing expectations regarding our future and projections relating to our products, sales, revenues, and earnings are typical of such statements and are made under the Private Securities ...

Charles & Colvard, Ltd. (NASDAQ:CTHR) Q2 2021 Earnings Conference Call February 4, 2021 4:30 PM ET Company Participants Don O'Connell – President and Chief Executive Officer Clint Pete – Chief Financial Officer Conference Call Participants Matt Koranda – ROTH Capital Jason Ursaner – Bumbershoot Holdings Paul Zimnisky – PZDA Eric Landry – BML Capital Operator Good day, and welcome to the Charles & Colvard Second Quarter Fiscal Year 2021 Earnings Conference Call and Webcast. All participants will be in a list ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, no par value per share CTHR The Nasdaq Stock Market LLC FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended December 31, 2020 OR ☐ Transition report pursuant to Section 13 of 15(d) of the Securities Exchange Act of 1934 For the transition period from _____ ...

1 Conference Call Presentation Nasdaq: CTHR Q1 Fiscal 2021 Earnings Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements expressing expectations regarding our future and projections relating to our products, sales, revenues, and earnings are typical of such statements and are made under the Private Securities Litigation Reform ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, no par value per share CTHR The Nasdaq Stock Market LLC FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2020 OR ☐ Transition report pursuant to Section 13 of 15(d) of the Securities Exchange Act of 1934 For the transition period from ____ ...

Charles & Colvard, Ltd. (NASDAQ:CTHR) Q4 2020 Earnings Conference Call September 3, 2020 4:30 PM ET Company Participants Don O'Connell - President & Chief Executive Officer Clint Pete - Chief Financial Officer Conference Call Participants Gustavo Gala - ROTH Capital Partners Berke Bakay - Bakay Capital Management Adam Proger - Raymond James Operator Good day, and welcome to the Charles & Colvard Q4 Fiscal Year 2020 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After to ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended June 30, 2020 OR ☐ Transition report pursuant to Section 13 of 15(d) of the Securities Exchange Act of 1934 For the transition period from_________ to__________ Commission File Number: 000-23329 Charles & Colvard, Ltd. (Exact name of registrant as specified in its charter) North Carolina 56-1928817 (State ...

Nasdaq: CTHR Nasdaq: CTHR 1 CHARLES & COLVARD® Q4 & Full Year Fiscal 2020 Earnings Conference Call Presentation Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements expressing expectations regarding our future and projections relating to our products, sales, revenues, and earnings are typical of such statements and are made un ...

Financial Performance - Q3 FY2020 - Net sales decreased by 18% to $65 million compared to $79 million in the same quarter last year[7] - Online channels segment net sales decreased by 12% to $40 million[7] - Traditional segment net sales decreased by 24% to $30 million[7] - Net loss was $62 million, or $021 per diluted share, compared to net income of $08 million, or $004 per diluted share, in the prior year quarter[10] - Gross margin was -41%, impacted by a $53 million write-off of legacy material inventory[13, 14] Balance Sheet - Total cash decreased to $119 million as of March 31, 2020, compared to $130 million as of June 30, 2019[17] - Inventory decreased to $317 million as of March 31, 2020, compared to $337 million as of June 30, 2019[17] - Shareholders' equity decreased to $422 million as of March 31, 2020, compared to $462 million as of June 30, 2019[17] COVID-19 Response - The company furloughed approximately 50% of employees, primarily in operations and manufacturing[3] - Temporary salary reductions were implemented for all employees, including 25% for the CEO and 15% for the CFO & COO[3]

Financial Data and Key Metrics Changes - In Q3 2020, net sales decreased 18% to $6.5 million compared to the year-ago quarter [19] - The company reported a net loss of approximately $6.2 million or negative $0.21 per diluted share, compared to net income of approximately $814,000 or $0.04 per diluted share in the year-ago quarter [25] - Gross margin for Q3 2020 was a negative 41% compared to 47% in the year-ago quarter, primarily due to a $5.3 million inventory write-off [27] Business Line Data and Key Metrics Changes - Online channel net sales decreased 8% to $3.8 million, representing 59% of total net sales, while the traditional segment saw a 29% decrease to $2.7 million, representing 41% of total net sales [20][22] - Finished jewelry net sales decreased 12%, and loose jewel net sales decreased 24% for the quarter [23] - International sales decreased 63% versus the year-ago quarter, reflecting significantly lower orders from agents and distributors [24] Market Data and Key Metrics Changes - The COVID-19 pandemic adversely affected the overall economy and consumer buying behaviors, particularly impacting supply chains and sales channels [13] - The Asia-Pacific region experienced early impacts from the pandemic, affecting international distributor sales [15] - Domestic brick-and-mortar retailers began closing stores in March, leading to reduced operations for many distributors [15] Company Strategy and Development Direction - The company aims to maintain operational and financial stability while focusing on long-term growth strategies [35] - Key attributes include a strong e-commerce presence, an agile supply chain, and a focus on direct-to-consumer sales [36][41] - The company plans to leverage its digital marketing capabilities and adapt to changing consumer behaviors post-COVID-19 [44] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about early signs of improvement in online sales and traffic patterns [54] - The recovery of retail sales is expected to lag behind essential purchases, with a focus on rebuilding consumer confidence [56] - The company is prepared for a phased approach to ramping up operations and managing cash burn [48] Other Important Information - The company has applied for an SBA loan under the Payroll Protection Program to support salaries and other expenses [30] - Inventory as of March 31, 2020, totaled $31.7 million, down from $35.8 million at the end of the previous quarter [32] - The company is actively renegotiating contracts with vendors to align supply with current demand [33] Q&A Session Summary Question: What were your sales trends during the quarter leading up to COVID? - The company experienced strong sales leading up to Valentine's Day but saw a significant decline in traffic and sales starting in mid-March due to the pandemic [52][53] Question: Can you clarify the improvement in the online channel? - Online traffic improved compared to the initial downturn in March, but it remains below last year's performance [60] Question: What percentage of your retail customers are currently open? - Retail partners are opening on a phased basis, with varying degrees of operations depending on local regulations [69] Question: Can you provide an update on purchasing minimums with suppliers? - The company is working with suppliers to adjust commitments based on current demand and is focused on flexibility [75] Question: What opportunities exist in the current environment? - The management team is exploring potential acquisitions and strategic moves to augment the business during this challenging time [82]