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Teleconference with Accompanying Slide Discussion Scheduled Today at 4:30 PM ET

• $10.4 million in internet sales for the quarter finished December 31, 2022.
• Created favorable capital from procedures of $600,000 throughout the quarter finished December 31, 2022.
• $17.0 million complete cash money since December 31, 2022.
• Online Networks sales were 76% of incomes in the 2nd quarter, up from 68% in the previous year’s 2nd quarter and also 62% in the 2nd quarter of 2021.
• Completed precious jewelry stood for 81% of internet sales, up from 77% in the previous year’s 2nd quarter.
• 19% boost in laboratory expanded ruby sales throughout Q2 of 2023 versus the equivalent year ago duration and also up 603% YTD 2023 versus YTD 2021 degrees.
• Opened up initially retail Trademark Display room place in October 2022.

RESEARCH STUDY TRIANGULAR PARK, N.C., Feb. 2, 2023 /PRNewswire/ — Charles & Colvard, Ltd. (Nasdaq: CTHR) (the “Business”), an internationally acknowledged great precious jewelry business focusing on laboratory developed Made, Not Extracted™ gems, reported economic outcomes for the 2nd quarter finished December 31, 2022 (“2nd Quarter Fiscal 2023”). 

Monitoring Discourse 

“Our company believe we are performing versus our critical efforts to construct long-lasting worth in Charles & Colvard in order to make use of the makeover occurring within the market in the direction of laboratory expanded gems and also sensibly made great precious jewelry,” stated Don O’Connell, Head Of State and also Chief Executive Officer of Charles & Colvard. “While the macroeconomic setting has actually verified to be testing in the near-term, the hidden outcomes throughout the 2nd quarter highlight the progression made versus our strategy to boost our direct-to-consumer visibility, boost our company-owned brand names, broaden our impact in the laboratory expanded ruby room, and also better handle our annual report. Regardless of the macro problems, we taped $10.4 million in earnings, a degree that has actually just been gotten to a handful of times in the Business’s 27-year background and also produced favorable capital from procedures throughout our 2nd quarter.”

“Our company believe that Charles & Colvard is well placed to gain from the background of responsibly-sourced and also direct-to-consumer precious jewelry acquisitions, which our Made, Not Extracted™ gems, including our Forever One™ moissanite and also Caydia^® laboratory expanded rubies, are coming to be location brand names for the mindful customer while the improvement of our Company-owned circulation capacities is supplying these customers with a collection of getting networks where they can discover great precious jewelry that comes, lovely and also diligent. This altitude of our brand names and also Company-owned circulation capacities settings us to boost the long-lasting worth within business and also enables us to far better control our very own fate. These crucial locations of emphasis surpassed the bigger leading line number throughout the quarter which was mostly affected by the decrease in our Conventional sector as we concentrated on our direct-to-consumer initiatives,” O’Connell proceeded.

“With an audio technique in position created to make use of the long-lasting underlying change of the customer, paired with a solid annual report, we really feel excellent regarding the Business’s setting in the market. As the macroeconomic setting starts to enhance, our company believe the outcomes of our technique will certainly be accomplished,” O’Connell ended.

Financial Recap for Secondly Quarter Fiscal 2023
(Quarter Finished December 31, 2022 Contrasted to Quarter Finished December 31, 2021)

• Web sales of $10.4 million for the quarter, a decline of 25% from $13.8 million in the year-ago quarter.
• In the Online Networks sector, which includes shopping electrical outlets consisting of charlesandcolvard.com, moissaniteoutlet.com, third-party on-line industries, drop-ship retail and also various other pure-play, solely shopping electrical outlets, internet sales of $7.8 million, a decline of 16% from the year-ago quarter, standing for 76% of complete internet sales for the quarter, contrasted to $9.3 million, or 68% of complete internet sales in the year-ago quarter.
• In the Conventional sector, which includes wholesale and also retail clients, internet sales of $2.5 million, a decline of 43% from the year-ago quarter, standing for 24% of complete internet sales for the quarter, contrasted to $4.4 million, or 32% of complete internet sales, in the year-ago quarter.
• Completed precious jewelry internet sales of $8.4 million, a decline of 20% for the quarter, contrasted to $10.5 million in the year-ago quarter.
• Loosened gem internet sales reduced 40% to $1.9 million for the quarter, contrasted to $3.2 million in the year-ago quarter.
• Business expenses raised 5% to $5.5 million for the quarter, contrasted to $5.3 million in the year-ago quarter, largely because of raised financial investment in advertising approaches for the holiday.
• Revenue tax obligation advantage of $132,000 for the quarter, contrasted to an earnings tax obligation cost of $283,000 in the year-ago quarter.
• Bottom line was $1.0 million, or $0.03 loss per watered down share for the quarter, contrasted to take-home pay of $1.2 million, or $0.04 revenues per watered down share, in the year-ago quarter.
• Heavy ordinary watered down shares exceptional were 30.3 million for the quarter, contrasted to 31.3 million in the year-ago quarter, partly driven by the effect of the Business’s share bought program.

Economic Placement

Cash money, cash money matchings and also limited cash money completed $17.0 million since December 31, 2022, standing for a rise of $0.4 million from $16.6 million since September 30, 2022, and also a decline of $4.2 million from $21.2 million since June 30, 2022. Complete stock raised to $35.0 million since December 31, 2022, contrasted to $33.5 million since June 30, 2022. The Business had no financial obligation exceptional since December 31, 2022.

Financier Teleconference

Charles & Colvard will certainly organize a capitalist teleconference and also webcast discussion to review its economic outcomes for the quarter finished December 31, 2022 at 4:30 p.m. ET on Thursday, February 2, 2023. 

Real-time Call-In Info:  Interested events can access the teleconference by dialing (844) 875-6912 (U.S. toll-free) or (412) 317-6708 (global) and also asked to be signed up with to the Charles & Colvard telephone call.

Real-time Webcast Info: Interested events can access the teleconference and also coming with discussion slide using an online webcast, which is readily available in the Financier Relations area of the Business’s web site at https://ir.charlesandcolvard.com/events or https://www.webcaster4.com/Webcast/Page/346/47290.  

A replay of this teleconference will certainly be readily available till February 9, 2023 at (877) 344-7529 (U.S. toll-free) or (412) 317-0088 (global). The replay meeting code is 4241796. A webcast replay will certainly be readily available in the Financier Relations area of the Business’s web site at https://ir.charlesandcolvard.com/events.

Concerning Charles & Colvard, Ltd.

Charles & Colvard, Ltd. (Nasdaq: CTHR) thinks that great precious jewelry ought to be as moral as it is beautiful. Charles & Colvard is the initial maker of laboratory expanded moissanite (an uncommon gems developed from silicon carbide). The Business brings cutting edge treasures and also great precious jewelry to market by utilizing solely Made, Not Extracted™ over ground gems and also a devotion to 100% recycled rare-earth elements. Their Forever One™ moissanite and also Caydia^® laboratory expanded ruby brand names are created to supply remarkable high quality, unbelievable worth and also an aware method to wedding, haute couture, and also day-to-day precious jewelry. Charles & Colvard was started in 1995 and also is based in North Carolina’s Study Triangular Park area. To learn more, please check out www.charlesandcolvard.com.

Progressive Declarations

This news release includes positive declarations within the definition of Area 27A of the Stocks Act of 1933, as changed, and also Area 21E of the Stocks Exchange Act of 1934, as changed. Declarations revealing assumptions concerning our future and also forecasts associating with our items, sales, incomes, and also revenues are common of such declarations and also are made under the Exclusive Stocks Lawsuits Reform Act of 1995. These positive declarations consist of, yet are not restricted to, declarations regarding our strategies, goals, depictions, and also opinions and also are not historic truths and also commonly are determined by utilize of terms such as “might,” “will,” “should,” “could,” “anticipate,” “plan,” “strategy,” “prepare for,” “think,” “price quote,” “forecast,” “proceed,” and also comparable words, although some positive declarations are shared in different ways.

All positive declarations go through the threats and also unpredictabilities integral in forecasting the future. You ought to realize that although the positive declarations consisted of here stand for monitoring’s present judgment and also assumptions, our real outcomes might vary materially from those forecasted, specified, or indicated in these positive declarations as an outcome of lots of aspects consisting of, yet not restricted to, (1) our organization and also our outcomes of procedures might be materially negatively impacted as an outcome of basic financial and also market problems; (2) our future economic efficiency relies on raised customer approval, development of sales of our items, and also functional implementation of our critical efforts; (3) the results of COVID-19 and also various other possible future public wellness dilemmas, upsurges, pandemics or comparable occasions on our organization, running outcomes, and also capital doubt; (4) we deal with extreme competitors in the around the world gems and also precious jewelry market; (5) our infotech, or IT, facilities, and also our network might be affected by a cyber-attack or various other safety and security occurrence as an outcome of the surge of cybersecurity occasions; (6) continuously progressing personal privacy regulative programs are producing brand-new lawful conformity difficulties; (7) we go through particular threats because of our global procedures, circulation networks and also suppliers; (8) our organization and also our outcomes of procedures might be materially negatively impacted as an outcome of our lack of ability to accomplish orders on a prompt basis; (9) we are presently based on a minimal variety of supplier and also retail companions in our Conventional sector for the sale of our items; (10) we might experience quality assurance difficulties periodically that can lead to shed earnings and also injury to our brand names and also track record; (11) seasonality of our organization might negatively impact our internet sales and also running revenue; (12) our procedures might be interrupted by all-natural calamities; (13) sales of moissanite and also laboratory grown up ruby precious jewelry might be reliant upon the prices of rare-earth elements, which is past our control; (14) our present clients might possibly regard us as a rival in the completed precious jewelry organization; (15) we rely on a solitary vendor for significantly every one of our silicon carbide, or SiC, crystals, the raw products we utilize to generate moissanite gems; if our supply of top quality SiC crystals is cut off, our organization might be materially hurt; (16) if the shopping chance modifications substantially or if shopping innovation or carriers alter their designs, our outcomes of procedures might be negatively impacted; (17) governmental guideline and also oversight may negatively influence our procedures; (18) the implementation of our organization strategies might considerably influence our liquidity; (19) the economic troubles or bankruptcy of several of our significant clients or their absence of readiness and also capability to market our items might negatively impact outcomes; (20) unfavorable or imprecise info on social networks might negatively influence our brand name and also track record; (21) we rely upon presumptions, price quotes, and also information to compute particular of our crucial metrics and also actual or viewed errors in such metrics might damage our track record and also adversely impact our organization; (22) we might not have the ability to appropriately secure our copyright, which might damage the worth of our items and also brand names and also negatively impact our organization; (23) ecological, social, and also administration issues might influence our organization, track record, economic problem, and also outcomes of procedures; (24) if we stop working to examine, carry out, and also incorporate critical procurement or personality chances effectively, our organization might experience; (25) our failing to preserve conformity with The Nasdaq Securities market’s ongoing listing needs might lead to the delisting of our ordinary shares; (26) some anti-takeover arrangements of our charter records might postpone or protect against a requisition of our Business; and also (27) we cannot ensure that our share bought program will certainly be used fully worth authorized, or that it will certainly boost long-lasting shareholder worth and also repurchases we practiced might raise the volatility of the cost of our ordinary shares and also might have an adverse influence on our readily available cash money equilibrium, along with the various other threats and also unpredictabilities explained in even more information in our filings with the U.S. Stocks and also Exchange Compensation (the “SEC”), including our Yearly Record on Type 10-K for the finished June 30, 2022 and also succeeding records submitted with the SEC. Progressive declarations talk just since the day they are made. We embark on no commitment to upgrade or modify such declarations to show brand-new situations or unexpected occasions as they take place other than as needed by the government safeties legislations, and also you are advised to evaluate and also think about disclosures that we make in the records that we submit with the Stocks and also Exchange Compensation, or SEC, that talk about various other aspects appropriate to our organization.

– Economic Tables Comply With –

Resource Charles & Colvard, Ltd.