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.
Editors' Picks
Sponsored by
More on Financials
The Latest
IndependentsSep 29, 2026
Christy Bromberg, Longtime Gift Buyer for Underwood Jewelers, Dies at 68She is remembered for her joie de vivre, upbeat personality, genuine interest in other people, and love of the Alabama Crimson Tide.
AuctionsSep 29, 2026
Dionne Warwick’s Jewelry Goes Up for AuctionOnline bidding is open now for Julien’s sale of items owned by the “Walk On By” singer, whose final album comes out this fall.
Events & AwardsSep 29, 2026
Matt Stuller to Receive 2027 Gem Award for Lifetime AchievementThe founder and executive chairman of Stuller Inc. is being honored for his impact on the jewelry industry at the 25th annual Gem Awards.
Brought to you by
Meet Gemology’s Next Generation Microscope: GIA® Gemolite® NXT Professional EditionExperience gemstones with greater precision and comfort than ever before.
ColumnistsSep 29, 2026
Your Holiday Marketing Has a Bridal Blind SpotDecember is the most popular month to propose, and jewelers need to keep that in mind when planning their holiday marketing.
Weekly QuizSep 25, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
AuctionsSep 29, 2026
If You Love Cats, This Jewelry Auction Is for YouCat ladies of the jewelry world, unite. Sandy Lerner’s collection of cat jewelry and other objects is going up for auction Wednesday.
CollectionsSep 28, 2026
De Beers London Drops Water-Inspired High Jewelry Collection“Vibrations” features several firsts for De Beers’ high jewelry, including the use of chalcedony and diamonds sourced from artisanal miners.
Brought to you by
Your Piece Could Be the One Editors Talk AboutSubmit your pieces for a chance to win in this year's competition.
CollectionsSep 28, 2026
Jessica McCormack Turns to Classic Motif for New CollectionThe “Bows” collection features three interpretations of the bow motif designed with Georgian and Victorian influences.
Events & AwardsSep 28, 2026
Guy Borenstein, Troy Underwood Among the Professionals Honored at AGS Conclave 2026The American Gem Society recognized industry members, one Guild, and a law enforcement official for their contributions to jewelry.
WatchesSep 25, 2026
Smaller Rolex Watches Showing Strength on Secondary Market, Data ShowsFive of the 10 fastest-appreciating Rolex models on Bob’s Watches were Datejust 31 or Lady Datejust watches.
MajorsSep 25, 2026
Sherwood Family Buys Back Daniel’s Jewelers from Private EquityThe Sherwood family and AJS Creations CEO Tejas Shah purchased the jewelry chain back from Palladium Equity Partners.
Lab-GrownSep 25, 2026
Brilliant Earth Collabs with Elizabeth Taylor Estate on Jewelry Collection“The Elizabeth Taylor Collection” uses lab-grown diamonds and gemstones in contemporary designs inspired by the icon.
TrendsSep 25, 2026
A Peek at Taylor Swift’s Game-Day DiamondsThe artist wore Dana Rebecca Designs’ marquise diamond-set gold hoops at the Chiefs game last Sunday. Now they’re our Piece of the Week.
CrimeSep 24, 2026
From Conclave: Security Measures Jewelers Should Be TakingJSA and Jewelers Mutual shared advice on spotting suspicious behavior, combatting cell phone jammers, and staying safe at home.
AuctionsSep 24, 2026
8-Carat Blue Diamond Heads to UK Jewelry AuctionThe fancy light blue diamond is estimated to fetch up to $2.6 million at Elmwood’s next week.
TrendsSep 24, 2026
This New Jewelry Book Decodes the Secret Meaning in Victorian Jewelry“Secret Language of Victorian Jewelry” unveils the meaning behind the symbols, motifs, and gemstones used in Victorian-era jewelry.
Lab-GrownSep 24, 2026
Kira Jewels Opens B2B E-Commerce Portal for Lab-Grown Diamond Jewelry KIRAJewels.one gives retailers access to more than 500 SKUs of lab-grown diamond rings, earrings, necklaces, and bracelets.
TrendsSep 23, 2026
Holiday Diamond Jewelry Trends: Layered Looks, PersonalizationThis holiday season, look to pieces that will help to fill out customers’ everyday diamond jewelry wardrobe, experts say.
SourcingSep 23, 2026
Organization That Promotes Natural Diamond Rebrands for Third Time The Natural Diamond Council is now The Diamond Collective and has announced a new strategy under CEO Amber Pepper.
IndependentsSep 23, 2026
This Milwaukee-Area Jeweler Is Serving the 7CsPaul’s Jewelers sells coffee, chocolate, and cookies from a custom gold-wrapped trailer parked outside the store starting at 7 a.m.
MajorsSep 23, 2026
Kay Jewelers’ New Campaign Goes ‘All In’ on LovePart of its brand relaunch, the marketing around the campaign includes a contest involving a jacket set with 550 diamonds.
Events & AwardsSep 23, 2026
Tiffany & Co. Exhibition Opening at Arkansas Museum The curation, opening soon at the Crystal Bridges Museum of American Art, honors the jeweler’s heritage through a distinctly American lens.
CollectionsSep 23, 2026
Pucker Up for Pandora’s New Pat McGrath Jewelry CollabThe jewelry giant has partnered with the famed makeup artist to create a colorful new collection of charms and rings.
IndependentsSep 23, 2026
Texas Jewelers Association to Celebrate 120th AnniversaryThe association will mark the milestone at its convention next month.
IndependentsSep 23, 2026
Sissy’s Log Cabin’s ‘Back to School and Bling’ Event ReturnsThe jeweler donated school supplies to Memphis, Tennessee, students during the event combining basketball and mentorship.
