Charles & Colvard(CTHR) - 2024 Q3 - Quarterly Results

Financial Performance - Net sales for Q3 Fiscal 2024 were $5.3 million, a decrease of 21% from $6.6 million in the same quarter last year[11] - Gross profit was $1.2 million, with a gross margin of 23%, compared to a gross profit of $2.1 million and a gross margin of 32% in the previous year[11] - Net loss for the quarter was $3.6 million, or $0.12 loss per diluted share, compared to a net loss of $8.4 million, or $0.28 loss per diluted share, in the prior year[11] - Net loss for the nine months ended March 31, 2024, was $9,038,069, compared to a net loss of $10,327,981 for the same period in 2023, showing an improvement of approximately 12.5%[25] Sales Breakdown - Online Channels segment net sales were $4.1 million, representing 77% of total net sales, compared to $4.6 million or 70% in the prior year[11] - Traditional segment net sales were $1.2 million, representing 23% of total net sales, down from $2.0 million or 30% in the year-ago quarter[11] Expenses and Liabilities - Operating expenses increased by 13% to $4.9 million, compared to $4.3 million in the year-ago quarter[11] - Current liabilities increased from $7,061,760 to $8,619,916, an increase of about 22.0%[23] - Cash paid for interest expense during the period was $10,770, compared to no interest expense in the previous year[25] Cash and Assets - Cash, cash equivalents, and restricted cash totaled $9.2 million as of March 31, 2024, down from $15.6 million as of June 30, 2023[9] - Total assets decreased from $48,884,088 on June 30, 2023, to $40,962,873 on March 31, 2024, representing a decline of approximately 16.3%[23] - Cash and cash equivalents decreased from $10,446,532 to $3,685,729, a decline of about 64.7%[25] - Total shareholders' equity decreased from $39,774,586 to $30,925,479, a reduction of about 22.2%[23] Inventory Management - Total inventory decreased to $25.3 million as of March 31, 2024, down from $33.3 million as of March 31, 2023[9] - Inventory increased from $7,476,046 to $10,439,754, reflecting a rise of approximately 39.5%[23] Financing Activities - Proceeds from line of credit amounted to $500,000, marking a new financing activity[25] - Total long-term liabilities decreased from $2,047,742 to $1,417,478, a decline of approximately 30.8%[23] Brand Development - The company introduced a new gemstone brand, Forever Bright™, and launched charlesandcolvarddirect.com for independent jewelers and retailers[7] - The company aims to enhance brand awareness through a partnership with new brand ambassador Skyler Samuels[4]