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 March 31, 2020 OR ☐ Transition report pursuant to Section 13 of 15(d) of the Securities Exchange Act of 1934 For the transition period from ______ t ...

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, 2019 OR ☐ Transition report pursuant to Section 13 of 15(d) of the Securities Exchange Act of 1934 For the transition period from _____ ...

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, 2019 OR ☐ Transition report pursuant to Section 13 of 15(d) of the Securities Exchange Act of 1934 For the transition period from ____ ...

Brand Expansion and Marketing Strategies - The fiscal year ending June 30, 2020, will focus on expanding Charles & Colvard's brand globally, particularly targeting Millennial and Gen-Z consumers who are increasingly embracing lab-created gemstones[36]. - The company plans to utilize digital advertising and influencer marketing to enhance brand awareness and engage consumers through social media and OTT platforms[37]. - International sales strategies will include regional-specific marketing programs and partnerships with select retail and distribution partners to drive sales[38]. - The company generated significant online traffic through public relations efforts, resulting in increased brand mentions in consumer-related publications[55]. - The company plans to expand the use of video content, which is expected to account for over 80% of all internet content by 2020, to enhance marketing efforts[60]. - Attendance at major jewelry trade shows has helped extend outreach to customers, with plans to continue investing in these events[74]. - The company plans to continue increasing marketing and sales efforts for international expansion, which may increase operational complexity and financial strain[165]. Customer Engagement and Experience - Enhanced customer experience will be prioritized through technology evolution and data-driven decisions to improve personalization and engagement[41]. - Email subscribers are 35% more likely to purchase, prompting targeted advertising to drive email sign-ups[54]. - The company enhanced its transactional website to optimize for mobile consumers, implementing free shipping and a 60-day returns policy[65]. - The company has established a returns policy allowing consumers to return purchases within 60 days and customers in the Online Channels segment to return items within 30 days for valid reasons[115]. Product Development and Sustainability - In fiscal 2019, over 95% of finished jewelry sourced utilized recycled precious metals, with a goal to use only recycled materials in production going forward[42]. - Moissanite is positioned as a sustainable and ethical alternative to traditional gemstones, with unique properties that may disrupt the fine jewelry market[84]. - The company has expanded its finished jewelry selection to include fashion-oriented designs, utilizing loose moissanite jewels and precious metal settings[94]. - Charles & Colvard offers Forever OneTM in 27 cuts and sizes ranging from .002 carats to 6.13 carats, with Exotics line products up to 15.55 carats diamond equivalent weight[90]. Financial Performance and Growth - Net sales for the year ended June 30, 2019, reached $32,244,109, a significant increase from $27,032,964 in the previous year, reflecting a growth of about 19.8%[363]. - The company reported a net income of $2,275,467 for the year ended June 30, 2019, compared to a net loss of $453,477 in the previous year, marking a turnaround in profitability[363]. - Total assets increased to $51,146,381, up from $39,472,507 in the previous year, representing a growth of approximately 29.5%[361]. - Shareholders' equity increased to $45,719,024, up from $33,818,433, reflecting a growth of about 35.2%[361]. - The company’s cash and cash equivalents rose to $12,465,483, compared to $3,393,186 in the previous year, indicating a substantial increase of approximately 267.5%[361]. Supply Chain and Production - The company has a total purchase commitment of approximately $52.9 million under the Supply Agreement with Cree, with about $43.98 million remaining to be purchased as of June 30, 2019[97]. - Moissanite jewels are manufactured from gem-grade SiC crystals, primarily sourced from Cree, which holds the U.S. patent for micropipe-free silicon carbide material[95]. - The manufacturing process includes growing gem-grade raw SiC crystals, faceting, polishing, and rigorous quality assurance measures[100][101]. - The production yield of saleable jewels from SiC crystals significantly affects the volume and cost of moissanite jewels available for sale[102]. - The company relies on a single supplier, Cree, for substantially all SiC crystals, and any disruption in supply could materially harm the business[162]. Market Trends and Consumer Behavior - The consumer audience has shifted, with more than half now comprising Millennial and Gen-Z consumers, driven by beauty, value, and conscientiousness[46]. - Seasonal trends significantly affect sales, particularly during the holiday season, with expectations for increased sales of finished jewelry[82]. - 84% of global e-commerce sales are predicted to occur outside Europe and North America by 2020, presenting significant opportunities for cross-border trade[66]. - FTI Consulting estimates that 25% of total retail sales will be e-commerce centric by 2030, indicating a growing market for pure-play e-tailers[68]. Risks and Challenges - The company operates in a dynamic business environment with substantial risks and uncertainties that could materially affect financial performance[149]. - The company faces intense competition from various jewelry products, including mined and lab-created diamonds, which could adversely affect its market position[157]. - Economic conditions, including inflation and consumer spending patterns, could materially impact demand for luxury products like moissanite jewelry[164]. - The expiration of patents and the entry of new competitors in the moissanite market may challenge the company's competitive position[158]. - The company is subject to FTC regulations regarding the marketing of lab-grown diamonds, which may impact its promotional strategies[141]. Legal and Compliance Issues - The company has received notifications from Nasdaq regarding non-compliance with listing requirements due to stock price falling below $1.00 per share[172]. - The company may face legal proceedings related to intellectual property claims, which could result in significant expenses[188]. - The company is subject to governmental regulations regarding the marketing of lab-grown diamonds, which could impact its operations if challenged[192]. Operational Metrics and Management - The company relies on key metrics such as average order value and repeat customers, but acknowledges potential inaccuracies in these metrics[171]. - The company has trademarks and pending applications supporting its moissanite branding strategy, but future registrations are uncertain[187]. - The company evaluates strategic acquisition opportunities but faces risks related to performance expectations and integration challenges[191].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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 March 31, 2019 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 (S ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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, 2018 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 ...