CHARLES & COLVARD LTD

CIK:0001015155|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]
Net sales	$ 3,233,405	$ 4,953,023
Costs and expenses:
Cost of goods sold	2,232,403	3,008,507
Sales and marketing	1,877,330	2,721,965
General and administrative	1,262,292	1,854,268
Total costs and expenses	5,372,025	7,584,740
Loss from operations	(2,138,620)	(2,631,717)
Other income:
Interest income	43,635	92,260
Interest and other expense	(38,535)	0
Total other income, net	5,100	92,260
Loss before income taxes	(2,133,520)	(2,539,457)
Income tax benefit	0	0
Net loss	$ (2,133,520)	$ (2,539,457)
Net loss per common share:
Basic (in dollars per share)	$ (0.68)	$ (0.83)
Diluted (in dollars per share)	$ (0.68)	$ (0.83)
Weighted average number of shares used in computing net loss per common share:
Basic (in shares)	3,118,273	3,044,495
Diluted (in shares)	3,118,273	3,044,495

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,133,520)	$ (2,539,457)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	215,510	178,291
Stock-based compensation	43,422	51,444
Provision for uncollectible accounts	85,000	79,000
Recovery of sales returns	0	(81,000)
Provision for accounts receivable discounts	0	9,996
Changes in operating assets and liabilities:
Accounts receivable	(109,981)	(70,604)
Inventory	1,595,735	(576,149)
Prepaid expenses and other assets, net	132,164	86,410
Accounts payable	(867,553)	866,063
Accrued expenses and other liabilities	(249,093)	(669,377)
Net cash used in operating activities	(1,288,316)	(2,665,383)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(96,647)	(217,052)
Payments for intangible assets	(9,475)	(14,456)
Net cash used in investing activities	(106,122)	(231,508)
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(1,394,438)	(2,896,891)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD	9,465,518	15,568,911
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	8,071,080	12,672,020
Supplemental disclosure of cash flow information:
Cash paid during the year for interest expense	$ 40,518	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2024	Jun. 30, 2024
Current assets:
Cash and cash equivalents	$ 2,738,990	$ 4,137,055
Restricted cash	5,332,090	5,328,463
Accounts receivable, net	869,727	844,747
Inventory, net	5,911,568	7,507,303
Note receivable	250,000	250,000
Prepaid expenses and other assets	779,610	751,476
Total current assets	15,881,985	18,819,044
Long-term assets:
Inventory, net	17,423,082	17,423,082
Property and equipment, net	2,646,820	2,761,618
Intangible assets, net	375,597	370,186
Operating lease right-of-use assets	1,396,354	1,556,653
Other assets	49,658	49,658
Total long-term assets	21,891,511	22,161,197
TOTAL ASSETS	37,773,496	40,980,241
Current liabilities:
Accounts payable	7,406,728	8,274,284
Current maturity of long-term debt	2,300,000	2,300,000
Operating lease liabilities, current portion	910,486	904,330
Accrued expenses and other liabilities	2,612,560	2,650,532
Total current liabilities	13,229,774	14,129,146
Long-term liabilities:
Noncurrent operating lease liabilities	984,447	1,201,722
Total long-term liabilities	984,447	1,201,722
Total liabilities	14,214,221	15,330,868
Commitments and contingencies (Note 9)
Shareholders' equity:
Common stock, no par value; 50,000,000 shares authorized; 3,157,113 shares issued and 3,118,273 shares outstanding at September 30, 2024 and 3,157,113 shares issued and 3,118,273 shares outstanding at June 30, 2024	67,233,259	67,233,259
Additional paid-in capital	16,496,037	16,452,615
Treasury stock, at cost, 38,841 shares at both September 30, 2024 and June 30, 2024	(489,979)	(489,979)
Accumulated deficit	(59,680,042)	(57,546,522)
Total shareholders' equity	23,559,275	25,649,373
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 37,773,496	$ 40,980,241