#USA #NASDAQ #Charles & Colvard #Research Triangle Park #Moissanite

Charles & Colvard's Nasdaq Compliance Journey

In a recent announcement, Charles & Colvard, Ltd. (Nasdaq: CTHR) provided an update on its current status regarding compliance with Nasdaq regulations. The company disclosed that on February 25, 2025, it received a notification from the Listing Qualifications Department of Nasdaq concerning its ongoing non-compliance with the Nasdaq Listing Rule 5250(c)(1). This rule mandates the timely filing of periodic reports, which the company has failed to do for the fiscal quarter ending December 31, 2024.

This notification comes after Nasdaq had previously accepted Charles & Colvard's plan to regain compliance and set a deadline for submitting their Annual Report on Form 10-K for the fiscal year ending June 30, 2024, along with the Quarterly Report on Form 10-Q for the quarter that ended on September 30, 2024. Companies in similar situations are also required to provide updates on their compliance plans, which Charles & Colvard must submit no later than March 12, 2025. Failure to meet this new deadline could limit the company's options for regaining compliance, which is set for April 14, 2025.

Despite this concerning situation, it is important to note that the Nasdaq notice does not have an immediate impact on the trading or listing status of Charles & Colvard's common stock. The company reassured stakeholders that it is actively working to fulfill its outstanding periodic reports in a timely manner to regain compliance with the listing standards.

Background on Charles & Colvard

Founded in 1995 and based in Research Triangle Park, North Carolina, Charles & Colvard is renowned for pioneering lab-grown moissanite, a gemstone that is not only stunning but also ethically sourced. The company prides itself on its commitment to creating exquisite jewelry made exclusively from responsibly sourced materials, utilizing lab-grown gemstones and 100% recycled precious metals. Its product offerings include the iconic Forever One™ moissanite and the Caydia® lab-grown diamond collections, catering to consumers looking for luxurious yet sustainable jewelry options.

As the company navigates these compliance challenges, they emphasize their ongoing commitment to their sustainable practices, which are increasingly gaining popularity among socially-conscious consumers. Many of these stakeholders are hopeful that Charles & Colvard will successfully meet its compliance goals, allowing it to continue reaching new heights in the fine jewelry market.

Looking Ahead

Charles & Colvard’s journey through this compliance process will be closely watched by investors. The company's proactive approach in responding to Nasdaq’s requirements reflects its dedication to transparency and accountability. In addition to the need for timely filings, Charles & Colvard must address potential risks that could affect its operational success, emphasizing the importance of robust internal processes and adherence to regulatory standards.

In conclusion, while recent notifications from Nasdaq may pose challenges for Charles & Colvard, their continued commitment to ethical practices and transparency will be pivotal in regaining compliance and ensuring future growth. Stakeholders remain optimistic as the company diligently works toward its upcoming filing deadlines and navigates the complexities of compliance in the fast-paced financial landscape.