Company Summary: Charles & Colvard, Ltd.

Business Overview

• Founded: 1995 in North Carolina
• Headquarters: Morrisville, North Carolina
• Employees: 25 (as of March 26, 2025; 24 full-time, 1 part-time)
• Nature of Business:
  • Leading manufacturer, marketer, and distributor of lab-created gemstones, primarily focusing on moissanite.
  • Specializes in conflict-free, ethically sourced, and sustainable gemstones.
  • Operates two main segments:
    • Online Channels: Digital sales via websites, marketplaces, drop-shipping, and direct e-commerce (includes charlesandcolvard.com, moissaniteoutlet.com, charlesandcolvarddirect.com, madenetwork.com).
    • Traditional: Distributors, retailers, brick-and-mortar stores, including their own Charles & Colvard Signature Showroom opened in October 2022.

Core Products

• Moissanite Jewels:

  • Premier brand: Forever One™ (colorless, GIA grades D-E-F, over 30 cuts and sizes from 0.002 to 15.55 carats).
  • Other grades: Moissanite by Charles & Colvard®/Forever Bright™ (value line with lower quality standards for price-sensitive markets).
  • Raw Material Source: Primarily from Wolfspeed (formerly Cree), through an exclusive supply agreement (ended in February 2025).
  • Manufacturing Process: Growing, cutting, faceting, inspection, and laser inscription for authentication.
  • Finished Jewelry: Rings, earrings, pendants, bracelets, made with responsibly sourced metals, sold directly to consumers and wholesale buyers.

• Lab-Grown Diamonds:

  • Brand: Caydia® (premium lab-grown diamonds, launched in September 2020).
  • Characteristics: Hand-selected by GIA-certified gemologists, in grades E-G color, VS1 clarity, with certification and serial numbers.
  • Jewelry: Finished pieces such as stud earrings, rings, pendants, bracelets, with a focus on ethical sourcing and responsible metals.
  • Market Entry: Includes online, discrete luxury retailers, and strategic partnerships.

Revenue & Financials (Fiscal Year Ended June 30, 2024)

• Total Revenue: $21.96 million (down from $29.95 million in 2023)
• Net Loss: $14.36 million (improved from $19.58 million in 2023)
• Segmentation:
  • Finished Jewelry: $20.12 million (92% of total sales) — decreased 16% from prior year.
  • Loose Jewels: $1.83 million (8% of total sales) — decreased 69% from prior year.
• Customer Base:
  • Largest U.S. customer accounted for 13% of sales during 2024 and 2023.
  • Total number of shareholders as of March 5, 2025: approximately 199.
• Employees: 25 total, no unionized workers.

Strategic & Operational Highlights

• Opened Signature Showroom in October 2022.
• Launched second direct-to-consumer website moissaniteoutlet.com in 2021.
• Launched charlesandcolvarddirect.com in May 2023 for wholesale purchasing.
• Expanded product lines including bridal, fashion, men's jewelry, and colored gemstones.
• Partnered with influencers, publicized via media, and engaged in strategic marketing campaigns.
• Disrupted temporarily by a ransomware cyber-attack in June 2023, costing approximately $300,000.
• Completed a reverse stock split (1-for-10) in May 2024, effective May 17, 2024.
• Ongoing legal settlement with Wolfspeed for breach of contract, paying $4.77 million (final payments through December 2025).

Business Focus

• Maintain leadership in moissanite and premium lab-grown diamonds amidst competition and pricing pressures.
• Diversify product offerings, strengthen branding, and grow global presence, especially via online channels.
• Navigating economic uncertainties, inflation, and market competition while focusing on ethical sourcing, innovation, and omni-channel sales.

Note: Data is based on the latest fiscal year ending June 30, 2024, and provided company disclosures.