GradingJun 12, 2024
IGI to Grade Charles & Colvard MoissaniteFinancialsOct 31, 2024
Charles & Colvard Faces Possible Nasdaq Delisting
The retailer said it will file the necessary paperwork to regain compliance as soon as it is able.
A 14-karat rose gold swirl bypass solitaire engagement ring set with a 1.10-carat “Forever One” cushion-cut moissanite by Charles & Colvard. The company is at risk of being delisted from the Nasdaq stock exchange after failing to file its annual report on time.
Research Triangle Park, N.C.—Charles & Colvard may be delisted from the Nasdaq due to noncompliance.
The North Carolina-based company announced Oct. 18 that it received a letter from the stock exchange stating it was not in compliance with the Nasdaq rule that requires the timely filing of all required periodic reports.
As of press time, the company has not filed its annual report via a Form 10-K for the fiscal year ending June 30, which was due to the exchange by Sept. 30.
Charles & Colvard filed a notification on Oct. 1 stating that it needed more time to complete the report due in part to the “pending outcome of confidential arbitration against the company.”
The company shared details of the dispute in its Q3 quarterly report, filed with the Securities and Exchange Commission on May 6.
Wolfspeed, a developer and manufacturer of wide-bandgap semiconductors (which allow devices to operate at much higher temperatures than conventional semiconductors), accused Charles & Colvard of breach of contract, claiming damages plus interest, cost, and attorney’s fees.
Charles & Colvard said it disputes the accusations.
While the Nasdaq notice doesn’t have an immediate effect on the company’s listing or trading of its common stock, it will have to regain compliance within 60 calendar days (by Dec. 17) or face delisting.
Alternatively, it can submit a plan to regain compliance to the Nasdaq by that day.
If the plan is accepted by the exchange, Charles & Colvard may be granted up to 180 calendar days, or until April 14, to regain compliance.
If the exchange does not accept the plan, the company can appeal the decision to a Nasdaq Hearings Panel.
“As stated in the company’s most recent press release, the company is working diligently to complete its Form 10-K and plans to file its Form 10-K as promptly as [is] practicable to regain compliance with the listing rule,” Charles & Colvard Chief Financial Officer Clint J. Pete said in a statement to National Jeweler.
Related stories will be right here …
The North Carolina-based company announced Oct. 18 that it received a letter from the stock exchange stating it was not in compliance with the Nasdaq rule that requires the timely filing of all required periodic reports.
As of press time, the company has not filed its annual report via a Form 10-K for the fiscal year ending June 30, which was due to the exchange by Sept. 30.
Charles & Colvard filed a notification on Oct. 1 stating that it needed more time to complete the report due in part to the “pending outcome of confidential arbitration against the company.”
The company shared details of the dispute in its Q3 quarterly report, filed with the Securities and Exchange Commission on May 6.
Wolfspeed, a developer and manufacturer of wide-bandgap semiconductors (which allow devices to operate at much higher temperatures than conventional semiconductors), accused Charles & Colvard of breach of contract, claiming damages plus interest, cost, and attorney’s fees.
Charles & Colvard said it disputes the accusations.
While the Nasdaq notice doesn’t have an immediate effect on the company’s listing or trading of its common stock, it will have to regain compliance within 60 calendar days (by Dec. 17) or face delisting.
Alternatively, it can submit a plan to regain compliance to the Nasdaq by that day.
If the plan is accepted by the exchange, Charles & Colvard may be granted up to 180 calendar days, or until April 14, to regain compliance.
If the exchange does not accept the plan, the company can appeal the decision to a Nasdaq Hearings Panel.
“As stated in the company’s most recent press release, the company is working diligently to complete its Form 10-K and plans to file its Form 10-K as promptly as [is] practicable to regain compliance with the listing rule,” Charles & Colvard Chief Financial Officer Clint J. Pete said in a statement to National Jeweler.
In its notification of late filing form, Charles & Colvard said it expects to report net sales were down by 25 percent year-over-year to $22.5 million for the fiscal year ending June 30.
The company said it expects to report a net loss that is “a significant change” compared with the net loss of $19.6 million reported last year.
It attributed the anticipated change in net loss to no income tax expense this year versus $5.9 million last year and the impact of a $5.9 million inventory write-down last year due to “pricing pressures and constrained consumer demand" that it will not have this fiscal year.
Charles & Colvard is best known for its moissanite jewelry but branched out into lab-grown diamonds in 2020, and lab-grown diamond prices have fallen precipitously since then.
The company previously faced the risk of being delisted due to a low stock price.
On June 12, 2023, Nasdaq sent the company a letter alerting it to noncompliance with a listing rule because its share price had not met the minimum bid price requirement of $1.
It was given 180 days to regain compliance as well as an additional 180 days after that, bringing it to June 2024.
To boost its stock price, Charles & Colvard announced in May that it would do a 1:10 reverse stock split.
In a reverse stock split, the number of shares a person owns is reduced while the price of each share is increased in a comparable way.
In a 1:10 reverse stock split, someone who owned $1,000 shares trading at $5 would then own 100 shares at $50 each after the split.
Charles & Colvard announced it had regained compliance in June.
Editor's Note: This story was edited post-publication to correct the reason for a change in net loss this fiscal year.
More on Financials
The Latest
MajorsMay 28, 2025
Graff Unveils New Las Vegas FlagshipThe 3,300-square foot location is the jeweler's largest store in North America.
CrimeMay 28, 2025
8 Convicted in Kim Kardashian Jewelry Heist TrialAging and with myriad health issues, none will serve time for their roles in robbing the billionaire celebrity at gunpoint in 2016.
CollectionsMay 28, 2025
NY Liberty’s 2024 Championship Rings Honor Historic WinThe WNBA team received rings imbued with meaning, from leaf motifs and its Liberty torch to the number of diamonds used.
Brought to you by
Clienteling Isn’t a Buzzword. It’s an Essential Business Model.More shoppers are walking out without buying. Here’s how smart jewelers can bring them back—and the tool they need to do it right.
MajorsMay 28, 2025
Andrew Rickard Named JBT PresidentA longtime executive at RDI Diamonds, Rickard has served on the JBT board for the past five years.
Weekly QuizMay 22, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsMay 27, 2025
MJSA to Become Part of Jewelers of America The two organizations have signed an affiliation agreement that’s expected to be finalized in the coming weeks.
AuctionsMay 27, 2025
Al Capone’s Patek Philippe Pocket Watch Back Up for AuctionThe platinum and diamond watch is part of Sotheby’s upcoming Important Watches sale.
Brought to you by
Las Vegas Antique Jewelry & Watch Show: Showcasing the Most Collectible Merchandise from Across the GlobeGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
AuctionsMay 27, 2025
182-Carat Paraíba-Type Tourmaline Sells for $487K Recovered in Mozambique, “The Kat Florence Lumina” was part of Bonhams’ Hong Kong jewelry auction held last week.
TrendsMay 27, 2025
Amanda’s Style File: Candy-Colored GemstonesGet a taste of the delicious candy-like gemstones in this Amanda’s Style File.
CrimeMay 23, 2025
JSA Shares Holiday Weekend Security Tips Amid Spike in BurglariesJSA’s Scott Guginsky provided a list of nine security measures jewelers should observe while locking up for the long weekend.
CollectionsMay 23, 2025
Piece of the Week: Bliss Lau’s ‘Bright’ RingFrom Lau’s “Love of a Kind” series, the engagement ring was inspired by the moon and holds a different meaning depending on how it is worn.
GradingMay 23, 2025
GIA Updates Pearl Classification SystemThe lab has adjusted the scale it uses for nacre grading.
Supplier BulletinMay 22, 2025
How to Put Natural Diamonds Back in the SpotlightSponsored by GCAL by Sarine
CrimeMay 22, 2025
NY Jeweler Sentenced in Shoving Death of Colleague at IJO ShowDavid Walton will serve three years’ probation after an incident in a hotel bar led to the death of West Virginia jeweler David Ettinger.
IndependentsMay 22, 2025
Adeler Jewelers Celebrates 50 YearsThe family-owned jeweler in Great Falls, Virginia, will be celebrating its golden jubilee with a year’s worth of events.
Events & AwardsMay 22, 2025
Jose Hess Design Awards Announce JudgesThe nonprofit elected five judges who will decide the winners of its design competition.
MajorsMay 22, 2025
MJSA Releases 2025-2026 Buyer’s GuideThis year’s edition includes articles on the favorite tools of notable designers, evaluating when to outsource production, and more.
CollectionsMay 21, 2025
Bulgari Highlights Its Colorful Past in Phenomenal ‘Polychroma’ CollectionThe jeweler’s high jewelry collection features extraordinary gemstones, like a 241.06-carat emerald and the world’s fourth-largest spinel.
ColumnistsMay 21, 2025
Edahn’s Take: Analyzing the 2025 ‘$100 Million Supersellers’ List In a special column for the State of the Majors, Edahn Golan breaks down what the top-performing fine jewelry sellers are doing right.
MajorsMay 21, 2025
Beyoncé Dons Brilliant Earth Necklace During Cowboy Carter TourThe bolo tie necklace is inspired by “Queen Bey” and set with a nearly 15-carat black diamond.
SourcingMay 21, 2025
Gem Legacy Expands Advisory CouncilThe nonprofit focused on mining communities in East Africa has added three new members to its advisory council.
MajorsMay 20, 2025
Annie Doresca to Lead DCA as New CEO, PresidentCurrent Diamond Council of America President and CEO Terry Chandler is set to retire in January 2026.
ColumnistsMay 20, 2025
Peter Smith: Leading Through ChangeCommunicating clearly with your staff is key to navigating turbulent times, writes columnist Peter Smith.
IndependentsMay 20, 2025
Luis Morais Opens Flagship, Launches Collection Celebrating 25 YearsThe “Inner Journey” collection debuted as the brand celebrated its 25th anniversary, with designs inspired by Morais’ journey.
MajorsMay 20, 2025
Tanishq Opens Seventh U.S. StoreTanishq is expanding its presence in the United States with a new store in Santa Clara, California, which is its largest in the country.
FinancialsMay 19, 2025
Jewelry Sales a Standout for Richemont in 2024Sales for Richemont’s four jewelry brands increased 8 percent, while watch sales picked up toward the end of the year.
