Morrisville, North Carolina-based Charles & Colvard Ltd., a company specializing in jewelry, silverware, and plated ware, announced on Friday that it has filed a Notification of Late Filing with the Securities and Exchange Commission (SEC) regarding its quarterly financial results for the period ending September 30, 2024.
The company, listed on The Nasdaq Stock Market under the ticker symbol NASDAQ:CTHR, submitted the Form 12b-25 indicating a delay in the submission of its Quarterly Report on Form 10-Q. The late filing notification includes preliminary estimates of the company's performance for the quarter ended September 30, 2024.
According to the document submitted to the SEC, the information is furnished and not filed, meaning it will not be deemed as part of the official filed financial statements and is not subject to the liabilities of Section 18 of the Securities Exchange Act of 1934.
Furthermore, the information provided in the late filing notice will not be incorporated by reference into any future filings under the Securities Act of 1933 or the Exchange Act, except as explicitly stated in such filings.
The details of the delay or the estimated financial results were not disclosed in this announcement. The company's business address is 170 Southport Drive, Morrisville, North Carolina, 27560, and it operates under the SIC code 3910 for Jewelry, Silverware & Plated Ware manufacturing.
This news comes directly from the company's 8-K filing and is intended to inform investors and the public of the current status of Charles & Colvard's financial reporting. The company has not provided any further details regarding the reasons for the delay or when the full financial results will be available.
In other recent news, Charles & Colvard has reported a significant 25% annual sales drop for the fiscal year ended June 30, 2024, with net sales falling to $22.5 million. The company also anticipates a substantial net loss for the year, a deviation from the previous year's $19.6 million net loss.
On the corporate front, Charles & Colvard rejected director nominations from Riverstyx Capital Management's principal, Ben Franklin, due to non-compliance with the company's bylaws.
In response to these recent developments, top executives and directors, including President and CEO, Don O'Connell, and CFO, Clint J. Pete, have agreed to a 10% reduction in their base salaries. Additionally, Charles & Colvard announced a reverse stock split at a one-for-ten ratio, reducing its number of outstanding shares.
In terms of compliance, the company received a non-compliance notification from Nasdaq due to a delay in filing its annual financial report but remains committed to regaining compliance within the provided timeframe. Lastly, as part of its strategic initiatives, Charles & Colvard launched a new gem brand, For Everbright.
InvestingPro Insights
Charles & Colvard's recent filing delay comes amid challenging financial circumstances for the company. According to InvestingPro data, the company's revenue for the last twelve months as of Q3 2024 stood at $23.68 million, with a concerning revenue decline of 29.69% over the same period. This downward trend is further emphasized by a 20.77% quarterly revenue decrease in Q3 2024.
InvestingPro Tips highlight that Charles & Colvard is currently trading at a low Price / Book multiple of 0.13, which could indicate that the stock is undervalued. However, this should be considered alongside the fact that the company is not profitable over the last twelve months and analysts do not anticipate profitability this year.
The company's stock price has taken a significant hit, with a year-to-date price total return of -67.33% as of the latest data. This aligns with another InvestingPro Tip noting that the stock price has fallen significantly over the last year.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Charles & Colvard, providing a deeper understanding of the company's financial health and market position.
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