North Carolina | 56-1928817 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
170 Southport Drive Morrisville, North Carolina | 27560 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, no par value per share | CTHR | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |
Emerging growth company | ☐ |
Page Number | ||
PART I – FINANCIAL INFORMATION | ||
Item 1. | ||
1 | ||
2 | ||
3 | ||
4 | ||
5 | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II – OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 6. | ||
Item 1. | Financial Statements |
December 31, 2022 (unaudited) | June 30, 2022 | September 30, 2023 (unaudited) | June 30, 2023 | |||||||||||||
ASSETS | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 11,960,102 | $ | 15,668,361 | $ | 7,592,698 | $ | 10,446,532 | ||||||||
Restricted cash | 5,065,189 | 5,510,979 | 5,079,322 | 5,122,379 | ||||||||||||
Accounts receivable, net | 2,086,868 | 2,220,816 | 442,693 | 380,085 | ||||||||||||
Inventory, net | 13,091,953 | 11,024,276 | 8,263,043 | 7,476,046 | ||||||||||||
Note receivable | - | 250,000 | 250,000 | 250,000 | ||||||||||||
Prepaid expenses and other assets | 1,241,712 | 1,190,012 | 969,440 | 901,354 | ||||||||||||
Total current assets | 33,445,824 | 35,864,444 | 22,597,196 | 24,576,396 | ||||||||||||
Long-term assets: | ||||||||||||||||
Inventory, net | 21,903,094 | 22,488,524 | 19,066,682 | 19,277,530 | ||||||||||||
Property and equipment, net | 2,215,274 | 1,901,176 | 2,534,713 | 2,491,569 | ||||||||||||
Intangible assets, net | 290,673 | 265,730 | 315,776 | 305,703 | ||||||||||||
Operating lease right-of-use assets | 2,488,052 | 2,787,419 | 2,028,736 | 2,183,232 | ||||||||||||
Deferred income taxes, net | 6,286,797 | 5,851,904 | ||||||||||||||
Note receivable | 250,000 | - | ||||||||||||||
Other assets | 50,300 | 49,658 | 49,658 | 49,658 | ||||||||||||
Total long-term assets | 33,484,190 | 33,344,411 | 23,995,565 | 24,307,692 | ||||||||||||
TOTAL ASSETS | $ | 66,930,014 | $ | 69,208,855 | $ | 46,592,761 | $ | 48,884,088 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 4,860,869 | $ | 4,401,229 | $ | 5,652,218 | $ | 4,786,155 | ||||||||
Operating lease liabilities, current portion | 868,269 | 856,571 | 886,117 | 880,126 | ||||||||||||
Accrued expenses and other liabilities | 1,398,178 | 1,546,483 | 925,385 | 1,395,479 | ||||||||||||
Total current liabilities | 7,127,316 | 6,804,283 | 7,463,720 | 7,061,760 | ||||||||||||
Long-term liabilities: | ||||||||||||||||
Noncurrent operating lease liabilities | 2,453,994 | 2,846,805 | 1,842,468 | 2,047,742 | ||||||||||||
Total long-term liabilities | 2,453,994 | 2,846,805 | 1,842,468 | 2,047,742 | ||||||||||||
Total liabilities | 9,581,310 | 9,651,088 | 9,306,188 | 9,109,502 | ||||||||||||
Commitments and contingencies (Note 9) | ||||||||||||||||
Shareholders’ equity: | ||||||||||||||||
Common stock, no par value; 50,000,000 shares authorized; 30,912,108 shares issued and 30,523,705 shares outstanding at December 31, 2022 and 30,778,046 shares issued and 30,747,759 shares outstanding at June 30, 2022 | 57,242,211 | 57,242,211 | ||||||||||||||
Common stock, no par value; 50,000,000 shares authorized; 30,912,108 shares issued and 30,523,705 shares outstanding at September 30, 2023 and 30,912,108 shares issued and 30,523,705 shares outstanding at June 30, 2023 | 57,242,211 | 57,242,211 | ||||||||||||||
Additional paid-in capital | 26,131,216 | 25,956,491 | 26,257,363 | 26,205,919 | ||||||||||||
Treasury stock, at cost, 388,403 shares and 30,287 shares at December 31, 2022 and June 30, 2022, respectively | (489,979 | ) | (38,164 | ) | ||||||||||||
Treasury stock, at cost, 388,403 shares at both September 30, 2023 and June 30, 2023 | (489,979 | ) | (489,979 | ) | ||||||||||||
Accumulated deficit | (25,534,744 | ) | (23,602,771 | ) | (45,723,022 | ) | (43,183,565 | ) | ||||||||
Total shareholders’ equity | 57,348,704 | 59,557,767 | 37,286,573 | 39,774,586 | ||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 66,930,014 | $ | 69,208,855 | $ | 46,592,761 | $ | 48,884,088 |
Three Months Ended December 31, | Six Months Ended December 31, | Three Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | |||||||||||||||||||
Net sales | $ | 10,366,122 | $ | 13,753,135 | $ | 17,740,204 | $ | 24,033,446 | $ | 4,953,023 | $ | 7,374,083 | ||||||||||||
Costs and expenses: | ||||||||||||||||||||||||
Cost of goods sold | 6,071,775 | 7,033,946 | 10,157,785 | 12,050,496 | 3,008,507 | 4,086,010 | ||||||||||||||||||
Sales and marketing | 4,339,684 | 4,079,035 | 7,447,630 | 6,809,187 | 2,721,965 | 3,107,946 | ||||||||||||||||||
General and administrative | 1,187,955 | 1,189,559 | 2,601,431 | 2,773,835 | 1,854,268 | 1,413,476 | ||||||||||||||||||
Total costs and expenses | 11,599,414 | 12,302,540 | 20,206,846 | 21,633,518 | 7,584,740 | 8,607,432 | ||||||||||||||||||
(Loss) Income from operations | (1,233,292 | ) | 1,450,595 | (2,466,642 | ) | 2,399,928 | ||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Loss from operations | (2,631,717 | ) | (1,233,349 | ) | ||||||||||||||||||||
Other income: | ||||||||||||||||||||||||
Interest income | 59,574 | 490 | 99,776 | 845 | 92,260 | 40,201 | ||||||||||||||||||
Loss on foreign currency exchange | - | - | - | (34 | ) | |||||||||||||||||||
Total other income (expense), net | 59,574 | 490 | 99,776 | 811 | ||||||||||||||||||||
(Loss) Income before income taxes | (1,173,718 | ) | 1,451,085 | (2,366,866 | ) | 2,400,739 | ||||||||||||||||||
Income tax benefit (expense) | 131,937 | (283,473 | ) | 434,893 | (406,102 | ) | ||||||||||||||||||
Net (loss) income | $ | (1,041,781 | ) | $ | 1,167,612 | $ | (1,931,973 | ) | $ | 1,994,637 | ||||||||||||||
Total other income | 92,260 | 40,201 | ||||||||||||||||||||||
Loss before income taxes | (2,539,457 | ) | (1,193,148 | ) | ||||||||||||||||||||
Income tax benefit | - | (302,956 | ) | |||||||||||||||||||||
Net loss | $ | (2,539,457 | ) | $ | (890,192 | ) | ||||||||||||||||||
Net (loss) income per common share: | ||||||||||||||||||||||||
Net loss per common share: | ||||||||||||||||||||||||
Basic | $ | (0.03 | ) | $ | 0.04 | $ | (0.06 | ) | $ | 0.07 | $ | (0.08 | ) | $ | (0.03 | ) | ||||||||
Diluted | $ | (0.03 | ) | $ | 0.04 | $ | (0.06 | ) | $ | 0.06 | $ | (0.08 | ) | $ | (0.03 | ) | ||||||||
Weighted average number of shares used in computing net (loss) income per common share: | ||||||||||||||||||||||||
Weighted average number of shares used in computing net loss per common share: | ||||||||||||||||||||||||
Basic | 30,344,954 | 30,287,677 | 30,408,018 | 30,159,543 | 30,444,954 | 30,433,195 | ||||||||||||||||||
Diluted | 30,344,954 | 31,315,488 | 30,408,018 | 31,237,948 | 30,444,954 | 30,433,195 |
Six Months Ended December 31, 2022 | ||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||
Number of Shares | Amount | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Total Shareholders’ Equity | |||||||||||||||||||
Balance at June 30, 2022 | 30,747,759 | $ | 57,242,211 | $ | 25,956,491 | $ | (38,164 | ) | $ | (23,602,771 | ) | $ | 59,557,767 | |||||||||||
Stock-based compensation | - | - | 96,232 | - | - | 96,232 | ||||||||||||||||||
Cancellation of restricted stock | (44,688 | ) | - | - | - | - | - | |||||||||||||||||
Repurchases of common stock | (358,116 | ) | - | - | (451,815 | ) | - | (451,815 | ) | |||||||||||||||
Net loss | - | - | - | - | (890,192 | ) | (890,192 | ) | ||||||||||||||||
Balance at September 30, 2022 | 30,344,955 | $ | 57,242,211 | $ | 26,052,723 | $ | (489,979 | ) | $ | (24,492,963 | ) | $ | 58,311,992 | |||||||||||
Stock-based compensation | - | - | 78,493 | - | - | 78,493 | ||||||||||||||||||
Issuance of restricted stock | 178,750 | - | - | - | - | - | ||||||||||||||||||
Net loss | - | - | - | - | (1,041,781 | ) | (1,041,781 | ) | ||||||||||||||||
Balance at December 31, 2022 | 30,523,705 | $ | 57,242,211 | $ | 26,131,216 | $ | (489,979 | ) | $ | (25,534,744 | ) | $ | 57,348,704 |
Six Months Ended December 31, 2021 | ||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||
Number of Shares | Amount | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Total Shareholders’ Equity | |||||||||||||||||||
Balance at June 30, 2021 | 29,913,095 | $ | 56,057,109 | $ | 25,608,593 | $ | - | $ | (25,976,686 | ) | $ | 55,689,016 | ||||||||||||
Stock-based compensation | - | - | 279,407 | - | - | 279,407 | ||||||||||||||||||
Issuance of restricted stock | 242,725 | - | - | - | - | - | ||||||||||||||||||
Stock option exercises | 183,637 | 397,112 | (139,742 | ) | - | - | 257,370 | |||||||||||||||||
Net income | - | - | - | - | 827,025 | 827,025 | ||||||||||||||||||
Balance at September 30, 2021 | 30,339,457 | $ | 56,454,221 | $ | 25,748,258 | $ | - | $ | (25,149,661 | ) | $ | 57,052,818 | ||||||||||||
Stock-based compensation | - | - | 199,004 | - | - | 199,004 | ||||||||||||||||||
Stock option exercises | 255,590 | 447,877 | (159,329 | ) | - | - | 288,548 | |||||||||||||||||
Net income | - | - | - | - | 1,167,612 | 1,167,612 | ||||||||||||||||||
Balance at December 31, 2021 | 30,595,047 | $ | 56,902,098 | $ | 25,787,933 | $ | - | $ | (23,982,049 | ) | $ | 58,707,982 |
Six Months Ended December 31, | ||||||||
2022 | 2021 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net (loss) income | $ | (1,931,973 | ) | $ | 1,994,637 | |||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||||||||
Depreciation and amortization | 308,900 | 238,210 | ||||||
Stock-based compensation | 174,725 | 478,411 | ||||||
Provision for uncollectible accounts | - | 52,000 | ||||||
Provision for sales returns | 422,000 | 652,000 | ||||||
Inventory write-downs | 119,000 | 232,000 | ||||||
Provision for accounts receivable discounts | 4,899 | 29,250 | ||||||
Deferred income taxes | (434,893 | ) | 405,159 | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (292,951 | ) | (2,718,303 | ) | ||||
Inventory | (1,601,247 | ) | (2,899,591 | ) | ||||
Prepaid expenses and other assets, net | 247,025 | (483,054 | ) | |||||
Accounts payable | 459,640 | 2,096,372 | ||||||
Accrued income taxes | - | 943 | ||||||
Accrued expenses and other liabilities | (529,418 | ) | 43,297 | |||||
Net cash (used in) provided by operating activities | (3,054,293 | ) | 121,331 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchases of property and equipment | (617,283 | ) | (775,705 | ) | ||||
Payments for intangible assets | (30,658 | ) | (27,730 | ) | ||||
Net cash used in investing activities | (647,941 | ) | (803,435 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Stock option exercises | - | 545,918 | ||||||
Repurchases of common stock | (451,815 | ) | - | |||||
Net cash (used in) provided by financing activities | (451,815 | ) | 545,918 | |||||
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (4,154,049 | ) | (136,186 | ) | ||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD | 21,179,340 | 21,446,951 | ||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD | $ | 17,025,291 | $ | 21,310,765 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for income taxes | $ | 5,900 | $ | - |
Three Months Ended September 30, 2023 | ||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||
Number of Outstanding Shares | Amount | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Total Shareholders’ Equity | |||||||||||||||||||
Balance at June 30, 2023 | 30,523,705 | $ | 57,242,211 | $ | 26,205,919 | $ | (489,979 | ) | $ | (43,183,565 | ) | $ | 39,774,586 | |||||||||||
Stock-based compensation | - | - | 51,444 | - | - | 51,444 | ||||||||||||||||||
Net loss | - | - | - | - | (2,539,457 | ) | (2,539,457 | ) | ||||||||||||||||
Balance at September 30, 2023 | 30,523,705 | 57,242,211 | 26,257,363 | (489,979 | ) | (45,723,022 | ) | 37,286,573 |
Three Months Ended September 30, 2022 | ||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||
Number of Outstanding Shares | Amount | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Total Shareholders’ Equity | |||||||||||||||||||
Balance at June 30, 2022 | 30,747,759 | $ | 57,242,211 | $ | 25,956,491 | $ | (38,164 | ) | $ | (23,602,771 | ) | $ | 59,557,767 | |||||||||||
Stock-based compensation | - | - | 96,232 | - | - | 96,232 | ||||||||||||||||||
Cancellation of restricted stock | (44,688 | ) | - | - | - | - | - | |||||||||||||||||
Repurchases of common stock | (358,116 | ) | - | - | (451,815 | ) | - | (451,815 | ) | |||||||||||||||
Net loss | - | - | - | - | (890,192 | ) | (890,192 | ) | ||||||||||||||||
Balance at September 30, 2022 | 30,344,955 | $ | 57,242,211 | $ | 26,052,723 | $ | (489,979 | ) | $ | (24,492,963 | ) | $ | 58,311,992 |
Three Months Ended September 30, | ||||||||
2023 | 2022 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net loss | $ | (2,539,457 | ) | $ | (890,192 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 178,291 | 137,711 | ||||||
Stock-based compensation | 51,444 | 96,232 | ||||||
Provision for uncollectible accounts | 79,000 | - | ||||||
Recovery of sales returns | (81,000 | ) | (36,000 | ) | ||||
Inventory write-downs | - | 119,000 | ||||||
Provision for accounts receivable discounts | 9,996 | 3,250 | ||||||
Deferred income taxes | - | (302,956 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (70,604 | ) | 695,165 | |||||
Inventory | (576,149 | ) | (3,174,668 | ) | ||||
Prepaid expenses and other assets, net | 86,410 | (36,616 | ) | |||||
Accounts payable | 866,063 | 316,819 | ||||||
Accrued expenses and other liabilities | (669,377 | ) | (598,883 | ) | ||||
Net cash used in operating activities | (2,665,383 | ) | (3,671,138 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchases of property and equipment | (217,052 | ) | (430,400 | ) | ||||
Payments for intangible assets | (14,456 | ) | (2,214 | ) | ||||
Net cash used in investing activities | (231,508 | ) | (432,614 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Repurchases of common stock | - | (451,815 | ) | |||||
Net cash used in financing activities | - | (451,815 | ) | |||||
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (2,896,891 | ) | (4,555,567 | ) | ||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD | 15,568,911 | 21,179,340 | ||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD | $ | 12,672,020 | $ | 16,623,773 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for income taxes | $ | - | $ | 5,900 |
1. | DESCRIPTION OF BUSINESS |
2. | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES |
December 31, 2022 | June 30, 2022 | September 30, 2023 | June 30, 2023 | |||||||||||||
Cash and cash equivalents | $ | 11,960,102 | $ | 15,668,361 | $ | 7,592,698 | $ | 10,446,532 | ||||||||
Restricted cash | 5,065,189 | 5,510,979 | 5,079,322 | 5,122,379 | ||||||||||||
Total cash, cash equivalents, and restricted cash | $ | 17,025,291 | $ | 21,179,340 | $ | 12,672,020 | $ | 15,568,911 |
3. | SEGMENT INFORMATION AND GEOGRAPHIC DATA |
Three Months Ended December 31, 2022 | Three Months Ended September 30, 2023 | |||||||||||||||||||||||
Online Channels | Traditional | Total | Online Channels | Traditional | Total | |||||||||||||||||||
Net sales | ||||||||||||||||||||||||
Finished jewelry | $ | 7,123,440 | $ | 1,312,768 | $ | 8,436,208 | $ | 3,596,942 | $ | 704,317 | $ | 4,301,259 | ||||||||||||
Loose jewels | 722,388 | 1,207,526 | 1,929,914 | 319,744 | 332,020 | 651,764 | ||||||||||||||||||
Total | $ | 7,845,828 | $ | 2,520,294 | $ | 10,366,122 | $ | 3,916,686 | $ | 1,036,337 | $ | 4,953,023 | ||||||||||||
Product line cost of goods sold | ||||||||||||||||||||||||
Finished jewelry | $ | 3,446,197 | $ | 739,134 | $ | 4,185,331 | $ | 1,575,600 | $ | 383,567 | $ | 1,959,167 | ||||||||||||
Loose jewels | 263,285 | 607,965 | 871,250 | 99,978 | 139,396 | 239,374 | ||||||||||||||||||
Total | $ | 3,709,482 | $ | 1,347,099 | $ | 5,056,581 | $ | 1,675,578 | $ | 522,963 | $ | 2,198,541 | ||||||||||||
Product line gross profit | ||||||||||||||||||||||||
Finished jewelry | $ | 3,677,243 | $ | 573,634 | $ | 4,250,877 | $ | 2,021,342 | $ | 320,750 | $ | 2,342,092 | ||||||||||||
Loose jewels | 459,103 | 599,561 | 1,058,664 | 219,766 | 192,624 | 412,390 | ||||||||||||||||||
Total | $ | 4,136,346 | $ | 1,173,195 | $ | 5,309,541 | $ | 2,241,108 | $ | 513,374 | $ | 2,754,482 | ||||||||||||
Operating loss | $ | (346,102 | ) | $ | (887,190 | ) | $ | (1,233,292 | ) | |||||||||||||||
Depreciation and amortization | $ | 56,505 | $ | 114,684 | $ | 171,189 | $ | 48,758 | $ | 129,533 | $ | 178,291 | ||||||||||||
Capital expenditures | $ | 22,620 | $ | 164,263 | $ | 186,883 | $ | 120,145 | $ | 96,907 | $ | 217,052 |
Three Months Ended September 30, 2022 | ||||||||||||
Online Channels | Traditional | Total | ||||||||||
Net sales | ||||||||||||
Finished jewelry | $ | 4,403,589 | $ | 1,136,817 | $ | 5,540,406 | ||||||
Loose jewels | 448,897 | 1,384,780 | 1,833,677 | |||||||||
Total | $ | 4,852,486 | $ | 2,521,597 | $ | 7,374,083 | ||||||
Product line cost of goods sold | ||||||||||||
Finished jewelry | $ | 1,970,111 | $ | 636,588 | $ | 2,606,699 | ||||||
Loose jewels | 162,699 | 662,924 | 825,623 | |||||||||
Total | $ | 2,132,810 | $ | 1,299,512 | $ | 3,432,322 | ||||||
Product line gross profit | ||||||||||||
Finished jewelry | $ | 2,433,478 | $ | 500,229 | $ | 2,933,707 | ||||||
Loose jewels | 286,198 | 721,856 | 1,008,054 | |||||||||
Total | $ | 2,719,676 | $ | 1,222,085 | $ | 3,941,761 | ||||||
Depreciation and amortization | $ | 63,387 | $ | 74,324 | $ | 137,711 | ||||||
Capital expenditures | $ | 136,988 | $ | 293,412 | $ | 430,400 |
Three Months Ended December 31, 2021 | ||||||||||||
Online Channels | Traditional | Total | ||||||||||
Net sales | ||||||||||||
Finished jewelry | $ | 8,452,535 | $ | 2,086,631 | $ | 10,539,166 | ||||||
Loose jewels | 871,119 | 2,342,850 | 3,213,969 | |||||||||
Total | $ | 9,323,654 | $ | 4,429,481 | $ | 13,753,135 | ||||||
Product line cost of goods sold | ||||||||||||
Finished jewelry | $ | 3,432,950 | $ | 1,271,026 | $ | 4,703,976 | ||||||
Loose jewels | 333,785 | 1,100,780 | 1,434,565 | |||||||||
Total | $ | 3,766,735 | $ | 2,371,806 | $ | 6,138,541 | ||||||
Product line gross profit | ||||||||||||
Finished jewelry | $ | 5,019,585 | $ | 815,605 | $ | 5,835,190 | ||||||
Loose jewels | 537,334 | 1,242,070 | 1,779,404 | |||||||||
Total | $ | 5,556,919 | $ | 2,057,675 | $ | 7,614,594 | ||||||
Operating income | $ | 1,432,727 | $ | 17,868 | $ | 1,450,595 | ||||||
Depreciation and amortization | $ | 53,470 | $ | 60,528 | $ | 113,998 | ||||||
Capital expenditures | $ | 27,040 | $ | 350,545 | $ | 377,585 |
Six Months Ended December 31, 2022 | ||||||||||||
Online Channels | Traditional | Total | ||||||||||
Net sales | ||||||||||||
Finished jewelry | $ | 11,527,029 | $ | 2,449,585 | $ | 13,976,614 | ||||||
Loose jewels | 1,171,285 | 2,592,305 | 3,763,590 | |||||||||
Total | $ | 12,698,314 | $ | 5,041,890 | $ | 17,740,204 | ||||||
Product line cost of goods sold | ||||||||||||
Finished jewelry | $ | 5,416,308 | $ | 1,375,723 | $ | 6,792,031 | ||||||
Loose jewels | 425,984 | 1,270,889 | 1,696,873 | |||||||||
Total | $ | 5,842,292 | $ | 2,646,612 | $ | 8,488,904 | ||||||
Product line gross profit | ||||||||||||
Finished jewelry | $ | 6,110,721 | $ | 1,073,862 | $ | 7,184,583 | ||||||
Loose jewels | 745,301 | 1,321,416 | 2,066,717 | |||||||||
Total | $ | 6,856,022 | $ | 2,395,278 | $ | 9,251,300 | ||||||
Operating loss | $ | (955,647 | ) | $ | (1,510,995 | ) | $ | (2,466,642 | ) | |||
Depreciation and amortization | $ | 119,892 | $ | 189,008 | $ | 308,900 | ||||||
Capital expenditures | $ | 159,608 | $ | 457,675 | $ | 617,283 |
Six Months Ended December 31, 2021 | ||||||||||||
Online Channels | Traditional | Total | ||||||||||
Net sales | ||||||||||||
Finished jewelry | $ | 12,939,493 | $ | 3,285,960 | $ | 16,225,453 | ||||||
Loose jewels | 1,753,966 | 6,054,027 | 7,807,993 | |||||||||
Total | $ | 14,693,459 | $ | 9,339,987 | $ | 24,033,446 | ||||||
Product line cost of goods sold | ||||||||||||
Finished jewelry | $ | 5,144,174 | $ | 1,894,285 | $ | 7,038,459 | ||||||
Loose jewels | 647,890 | 2,846,121 | 3,494,011 | |||||||||
Total | $ | 5,792,064 | $ | 4,740,406 | $ | 10,532,470 | ||||||
Product line gross profit | ||||||||||||
Finished jewelry | $ | 7,795,319 | $ | 1,391,675 | $ | 9,186,994 | ||||||
Loose jewels | 1,106,076 | 3,207,906 | 4,313,982 | |||||||||
Total | $ | 8,901,395 | $ | 4,599,581 | $ | 13,500,976 | ||||||
Operating income | $ | 1,754,398 | $ | 645,530 | $ | 2,399,928 | ||||||
Depreciation and amortization | $ | 121,172 | $ | 117,038 | $ | 238,210 | ||||||
Capital expenditures | $ | 86,300 | $ | 689,405 | $ | 775,705 |
Three Months Ended December 31, | Six Months Ended December 31, | Three Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | |||||||||||||||||||
Product line cost of goods sold | $ | 5,056,581 | $ | 6,138,541 | $ | 8,488,904 | $ | 10,532,470 | $ | 2,198,541 | $ | 3,432,322 | ||||||||||||
Non-capitalized manufacturing and production control expenses | 686,834 | 416,828 | 1,063,887 | 759,229 | 597,885 | 377,053 | ||||||||||||||||||
Freight out | 358,617 | 465,207 | 634,354 | 682,712 | 204,216 | 275,737 | ||||||||||||||||||
Inventory write-downs | - | - | 119,000 | 232,000 | - | 119,000 | ||||||||||||||||||
Other inventory adjustments | (30,257 | ) | 13,370 | (148,360 | ) | (155,915 | ) | 7,865 | (118,102 | ) | ||||||||||||||
Cost of goods sold | $ | 6,071,775 | $ | 7,033,946 | $ | 10,157,785 | $ | 12,050,496 | $ | 3,008,507 | $ | 4,086,010 |
Three Months Ended September 30, | ||||||||
2023 | 2022 | |||||||
Product line gross profit | $ | 2,754,482 | $ | 3,941,761 | ||||
Non-allocated cost of goods sold | (809,966 | ) | (653,688 | ) | ||||
Sales and marketing | (2,721,965 | ) | (3,107,946 | ) | ||||
General and administrative | (1,854,268 | ) | (1,413,476 | ) | ||||
Total other income | 92,260 | 40,201 | ||||||
Loss before income taxes | $ | (2,539,457 | ) | $ | (1,193,148 | ) |
Three Months Ended December 31, | Six Months Ended December 31, | Three Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | |||||||||||||||||||
Net sales | ||||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||
United States | $ | 9,989,702 | $ | 13,021,717 | $ | 17,085,074 | $ | 22,846,447 | $ | 4,768,910 | $ | 7,095,373 | ||||||||||||
International | 376,420 | 731,418 | 655,130 | 1,186,999 | 184,113 | 278,710 | ||||||||||||||||||
Total | $ | 10,366,122 | $ | 13,753,135 | $ | 17,740,204 | $ | 24,033,446 | $ | 4,953,023 | $ | 7,374,083 |
4. | FAIR VALUE MEASUREMENTS |
5. | INVENTORIES |
December 31, 2022 | June 30, 2022 | September 30, 2023 | June 30, 2023 | |||||||||||||
Finished jewelry: | ||||||||||||||||
Raw materials | $ | 1,427,479 | $ | 1,697,361 | $ | 1,493,987 | $ | 1,288,906 | ||||||||
Work-in-process | 758,703 | 1,260,728 | 1,147,154 | 1,223,670 | ||||||||||||
Finished goods | 14,160,399 | 12,100,910 | 13,546,994 | 12,772,611 | ||||||||||||
Finished goods on consignment | 2,417,645 | 2,135,856 | 2,199,128 | 2,039,506 | ||||||||||||
Total finished jewelry | $ | 18,764,226 | $ | 17,194,855 | $ | 18,387,263 | $ | 17,324,693 | ||||||||
Loose jewels: | ||||||||||||||||
Raw materials | $ | 1,455,749 | $ | 1,985,355 | $ | 317,392 | $ | 421,603 | ||||||||
Work-in-process | 8,720,482 | 8,485,713 | 5,712,141 | 6,131,853 | ||||||||||||
Finished goods | 5,473,592 | 5,454,266 | 2,338,373 | 2,294,270 | ||||||||||||
Finished goods on consignment | 260,271 | 303,491 | 260,998 | 254,323 | ||||||||||||
Total loose jewels | 15,910,094 | 16,228,825 | 8,628,904 | 9,102,049 | ||||||||||||
Total supplies inventory | 320,727 | 89,120 | 313,558 | 326,834 | ||||||||||||
Total inventory | $ | 34,995,047 | $ | 33,512,800 | $ | 27,329,725 | $ | 26,753,576 |
December 31, 2022 | June 30, 2022 | September 30, 2023 | June 30, 2023 | |||||||||||||
Short-term portion | $ | 13,091,953 | $ | 11,024,276 | $ | 8,263,043 | $ | 7,476,046 | ||||||||
Long-term portion | 21,903,094 | 22,488,524 | 19,066,682 | 19,277,530 | ||||||||||||
Total | $ | 34,995,047 | $ | 33,512,800 | $ | 27,329,725 | $ | 26,753,576 |
6. | NOTE RECEIVABLE |
7. | ACCRUED EXPENSES AND OTHER LIABILITIES |
December 31, 2022 | June 30, 2022 | September 30, 2023 | June 30, 2023 | |||||||||||||
Deferred revenue | $ | 304,399 | $ | 566,896 | ||||||||||||
Accrued compensation and related benefits | $ | 453,917 | $ | 614,443 | 241,124 | 382,630 | ||||||||||
Deferred revenue | 469,157 | 452,866 | ||||||||||||||
Accrued sales taxes and franchise taxes | 266,773 | 341,706 | ||||||||||||||
Accrued sales taxes and franchise tax | 144,434 | 202,091 | ||||||||||||||
Accrued cooperative advertising | 208,330 | 137,467 | 235,427 | 243,861 | ||||||||||||
Other accrued expenses | 1 | 1 | 1 | 1 | ||||||||||||
Total accrued expenses and other liabilities | $ | 1,398,178 | $ | 1,546,483 | $ | 925,385 | $ | 1,395,479 |
8. | INCOME TAXES |
9. | COMMITMENTS AND CONTINGENCIES |
Operating Leases: | ||||||||
Noncurrent operating lease ROU assets | $ | 2,488,052 | $ | 2,028,736 | ||||
Current operating lease liabilities | $ | 868,269 | $ | 886,117 | ||||
Noncurrent operating lease liabilities | 2,453,994 | 1,842,468 | ||||||
Total operating lease liabilities | $ | 3,322,263 | $ | 2,728,585 |
2023 | $ | 438,785 | ||||||
2024 | 893,660 | $ | 674,267 | |||||
2025 | 918,236 | 918,236 | ||||||
2026 | 943,487 | 943,487 | ||||||
2027 | 317,327 | 317,327 | ||||||
Total lease payments | 3,511,495 | 2,853,317 | ||||||
Less: imputed interest | 189,232 | 124,732 | ||||||
Present value of lease payments | 3,322,263 | 2,728,585 | ||||||
Less: current lease obligations | 868,269 | 886,117 | ||||||
Total long-term lease obligations | $ | 2,453,994 | $ | 1,842,468 |
10. | DEBT |
11. | SHAREHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION |
Three Months Ended December 31, | Six Months Ended December 31, | Three Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | |||||||||||||||||||
Employee stock options | $ | 49,704 | $ | 57,448 | $ | 122,202 | $ | 127,014 | $ | 51,444 | $ | 72,498 | ||||||||||||
Restricted stock awards | 28,789 | 141,556 | 52,523 | 351,397 | - | 23,734 | ||||||||||||||||||
Totals | $ | 78,493 | $ | 199,004 | $ | 174,725 | $ | 478,411 | $ | 51,444 | $ | 96,232 |
Shares | Weighted Average Exercise Price | |||||||
Outstanding, June 30, 2022 | 1,658,803 | $ | 1.32 | |||||
Granted | 270,787 | $ | 1.02 | |||||
Forfeited | (19,336 | ) | $ | 2.00 | ||||
Expired | (2,664 | ) | $ | 0.98 | ||||
Outstanding, December 31, 2022 | 1,907,590 | $ | 1.27 |
Shares | Weighted Average Exercise Price | |||||||
Outstanding, June 30, 2023 | 1,817,665 | $ | 1.24 | |||||
Forfeited | (18,671 | ) | $ | 1.79 | ||||
Expired | (30,829 | ) | $ | 1.41 | ||||
Outstanding, September 30, 2023 | 1,768,165 | $ | 1.23 |
Options Outstanding | Options Outstanding | Options Exercisable | Options Vested or Expected to Vest | Options Outstanding | Options Exercisable | Options Vested or Expected to Vest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | Balance as of December 31, 2022 | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | Balance as of December 31, 2022 | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of 9/30/2023 | Balance as of 9/30/2023 | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | Balance as of 9/30/2023 | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | Balance as of 9/30/2023 | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,907,590 | 6.86 | $ | 1.27 | 1,392,768 | 5.97 | $ | 1.21 | 1,854,215 | 6.80 | $ | 1.26 | 1,768,165 | 5.99 | $ | 1.23 | 1,433,192 | 5.32 | $ | 1.22 | 1,750,395 | 5.96 | $ | 1.23 |
Shares | Weighted Average Grant Date Fair Value | |||||||
Unvested, June 30, 2022 | 178,750 | $ | 2.75 | |||||
Granted | 178,750 | $ | 0.97 | |||||
Vested | (134,063 | ) | 2.75 | |||||
Cancelled | (44,687 | ) | $ | 2.75 | ||||
Unvested, December 31, 2022 | 178,750 | $ | 0.97 |
12. | NET |
Three Months Ended December 31, | Six Months Ended December 31, | Three Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | |||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Net (loss)income | $ | (1,041,781 | ) | $ | 1,167,612 | $ | (1,931,973 | ) | $ | 1,994,637 | ||||||||||||||
Net loss | $ | (2,539,457 | ) | $ | (890,192 | ) | ||||||||||||||||||
Denominator: | ||||||||||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||
Basic | 30,344,954 | 30,287,677 | 30,408,018 | 30,159,543 | 30,444,954 | 30,433,195 | ||||||||||||||||||
Effect of dilutive securities | - | 1,027,811 | - | 1,078,405 | ||||||||||||||||||||
Effects of dilutive securities | - | - | ||||||||||||||||||||||
Diluted | 30,344,954 | 31,315,488 | 30,408,018 | 31,237,948 | 30,444,954 | 30,433,195 | ||||||||||||||||||
Net (loss) income per common share: | ||||||||||||||||||||||||
Net loss per common share: | ||||||||||||||||||||||||
Basic | $ | (0.03 | ) | $ | 0.04 | $ | (0.06 | ) | $ | 0.07 | $ | (0.08 | ) | $ | (0.03 | ) | ||||||||
Diluted | $ | (0.03 | ) | $ | 0.04 | $ | (0.06 | ) | $ | 0.06 | $ | (0.08 | ) | $ | (0.03 | ) |
13. | MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK |
December 31, 2022 | June 30, 2022 | September 30, 2023 | June 30, 2023 | |||||||||||||
Customer A | 20 | % | 20 | % | 22 | % | 24 | % | ||||||||
Customer B | 20 | % | ** | % | 12 | % | 14 | % | ||||||||
Customer C | * | % | 29 | % | * | % | 14 | % | ||||||||
Customer D | * | % | 13 | % | 26 | % | ** | % |
* | Customer C September 30, 2023. |
** | Customer |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Customer A | 12 | % | 16 | % | 14 | % | 15 | % | ||||||||
Customer C | * | % | * | % | * | % | 11 | % |
Three Months Ended September 30, | ||||||||
2023 | 2022 | |||||||
Customer A | 14 | % | 17 | % |
1. | Our business and our results of operations could be materially adversely affected as a result of general economic and market conditions; |
2. | Our future financial performance depends upon increased consumer acceptance, growth of sales of our products, and operational execution of our strategic initiatives; |
3. |
We face intense competition in the worldwide gemstone and jewelry industry; |
4. | We have historically been dependent on a single supplier for substantially all of our silicon carbide, or SiC crystals, the raw materials we use to produce moissanite jewels; if our supply of high quality SiC crystals is interrupted, our business may be materially harmed; |
5. | Constantly evolving privacy regulatory regimes are creating new legal compliance challenges; |
6. | Our information technology, or IT, infrastructure, and our network has been and may be impacted by a cyber-attack or other security incident as a result of the rise of cybersecurity events; |
7. | We are subject to certain risks due to our international operations, distribution channels and vendors; |
8. | Our business and our results of operations could be materially adversely affected as a result of our inability to fulfill orders on a timely basis; |
9. | We are currently dependent on a limited number of distributor and retail partners in our Traditional segment for the sale of our products; |
10. | We may experience quality control challenges from time to time that can result in lost revenue and harm to our brands and reputation; |
11. | The effects of COVID-19 and other potential future public health crises, epidemics, pandemics or similar events on our business, operating results, and cash flows are uncertain; |
12. | Seasonality of our business may adversely affect our net sales and operating income; |
Our operations could be disrupted by natural disasters; |
Sales of moissanite and lab grown diamond jewelry could be dependent upon the pricing of precious metals, which is beyond our control; |
Our current customers may potentially perceive us as a competitor in the finished jewelry business; |
16. | If the e-commerce opportunity changes dramatically or if e-commerce technology or providers change their models, our results of operations may be adversely affected; |
17. | Governmental regulation and oversight might adversely impact our operations; |
18. | The execution of our business plans could significantly impact our liquidity; |
19. | We are subject to arbitration, litigation and demands, which could result in significant liability and costs, and impact our resources and reputation; |
20. | The financial difficulties or insolvency of one or more of our major customers or their lack of willingness and ability to market our products could adversely affect results; |
Negative or inaccurate information on social media could adversely impact our brand and reputation; |
We rely on assumptions, estimates, and data to calculate certain of our key metrics and real or perceived inaccuracies in such metrics may harm our reputation and negatively affect our business; |
We may not be able to adequately protect our intellectual property, which could harm the value of our products and brands and adversely affect our business; |
Environmental, social, and governance matters may impact our business, reputation, financial condition, and results of operations; |
If we fail to evaluate, implement, and integrate strategic acquisition or disposition opportunities successfully, our business may suffer; |
Our failure to maintain compliance with The Nasdaq Stock |
Some anti-takeover provisions of our charter documents may delay or prevent a takeover of our Company; and |
We cannot guarantee that our share repurchase program will be utilized to the full value approved, or that it will enhance long-term stockholder value and repurchases we consummate could increase the volatility of the price of our common stock and could have a negative impact on our available cash balance. |
Three Months Ended September 30, | ||||||||
2023 | 2022 | |||||||
Net sales | $ | 4,953,023 | $ | 7,374,083 | ||||
Costs and expenses: | ||||||||
Cost of goods sold | 3,008,507 | 4,086,010 | ||||||
Sales and marketing | 2,721,965 | 3,107,946 | ||||||
General and administrative | 1,854,268 | 1,413,476 | ||||||
Total costs and expenses | 7,584,740 | 8,607,432 | ||||||
Loss from operations | (2,631,717 | ) | (1,233,349 | ) | ||||
Other income: | ||||||||
Interest income | 92,260 | 40,201 | ||||||
Loss before income taxes | (2,539,457 | ) | (1,193,148 | ) | ||||
Income tax benefit | - | 302,956 | ||||||
Net loss | $ | (2,539,457 | ) | $ | (890,192 | ) |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net sales | $ | 10,366,122 | $ | 13,753,135 | $ | 17,740,204 | $ | 24,033,446 | ||||||||
Costs and expenses: | ||||||||||||||||
Cost of goods sold | 6,071,775 | 7,033,946 | 10,157,785 | 12,050,496 | ||||||||||||
Sales and marketing | 4,339,684 | 4,079,035 | 7,447,630 | 6,809,187 | ||||||||||||
General and administrative | 1,187,955 | 1,189,559 | 2,601,431 | 2,773,835 | ||||||||||||
Total costs and expenses | 11,599,414 | 12,302,540 | 20,206,846 | 21,633,518 | ||||||||||||
(Loss) Income from operations | (1,233,292 | ) | 1,450,595 | (2,466,642 | ) | 2,399,928 | ||||||||||
Other income (expense): | ||||||||||||||||
Interest income | 59,574 | 490 | 99,776 | 845 | ||||||||||||
Loss on foreign currency exchange | - | - | - | (34 | ) | |||||||||||
Total other income (expense), net | 59,574 | 490 | 99,776 | 811 | ||||||||||||
(Loss) Income before income taxes | (1,173,718 | ) | 1,451,085 | (2,366,866 | ) | 2,400,739 | ||||||||||
Income tax benefit (expense) | 131,937 | (283,473 | ) | 434,893 | (406,102 | ) | ||||||||||
Net (loss) income | $ | (1,041,781 | ) | $ | 1,167,612 | $ | (1,931,973 | ) | $ | 1,994,637 |
Three Months Ended December 31, | Change | Six Months Ended December 31, | Change | Three Months Ended September 30, | Change | |||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Dollars | Percent | 2022 | 2021 | Dollars | Percent | 2023 | 2022 | Dollars | Percent | |||||||||||||||||||||||||||||||||||||
Finished jewelry | $ | 8,436,208 | $ | 10,539,166 | $ | (2,102,958 | ) | (20 | )% | $ | 13,976,614 | $ | 16,225,453 | $ | (2,248,839 | ) | (14 | )% | $ | 4,301,259 | $ | 5,540,406 | $ | (1,239,147 | ) | (22 | )% | |||||||||||||||||||||
Loose jewels | 1,929,914 | 3,213,969 | (1,284,055 | ) | (40 | )% | 3,763,590 | 7,807,993 | (4,044,403 | ) | (52 | )% | 651,764 | 1,833,677 | (1,181,913 | ) | (64 | )% | ||||||||||||||||||||||||||||||
Total consolidated net sales | $ | 10,366,122 | $ | 13,753,135 | $ | (3,387,013 | ) | (25 | )% | $ | 17,740,204 | $ | 24,033,446 | $ | (6,293,242 | ) | (26 | )% | $ | 4,953,023 | $ | 7,374,083 | $ | (2,421,060 | ) | (33 | )% |
Three Months Ended December 31, | Change | Six Months Ended December 31, | Change | Three Months Ended September 30, | Change | |||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Dollars | Percent | 2022 | 2021 | Dollars | Percent | 2023 | 2022 | Dollars | Percent | |||||||||||||||||||||||||||||||||||||
Product line cost of goods sold: | ||||||||||||||||||||||||||||||||||||||||||||||||
Finished jewelry | $ | 4,185,331 | $ | 4,703,976 | $ | (518,645 | ) | (11 | )% | $ | 6,792,031 | $ | 7,038,459 | $ | (246,428 | ) | (4 | )% | $ | 1,959,167 | $ | 2,606,699 | $ | (647,532 | ) | (25 | )% | |||||||||||||||||||||
Loose jewels | 871,250 | 1,434,565 | (563,315 | ) | (39 | )% | 1,696,873 | 3,494,011 | (1,797,138 | ) | (51 | )% | 239,374 | 825,623 | (586,249 | ) | (71 | )% | ||||||||||||||||||||||||||||||
Total product line cost of goods sold | 5,056,581 | 6,138,541 | (1,081,960 | ) | (18 | )% | 8,488,904 | 10,532,470 | (2,043,566 | ) | (19 | )% | 2,198,541 | 3,432,322 | (1,233,781 | ) | (36 | )% | ||||||||||||||||||||||||||||||
Non-product line cost of goods sold | 1,015,194 | 895,405 | 119,789 | 13 | % | 1,668,881 | 1,518,026 | 150,855 | 10 | % | 809,966 | 653,688 | 156,278 | 24 | % | |||||||||||||||||||||||||||||||||
Total cost of goods sold | $ | 6,071,775 | $ | 7,033,946 | $ | (962,171 | ) | (14 | )% | $ | 10,157,785 | $ | 12,050,496 | $ | (1,892,711 | ) | (16 | )% | $ | 3,008,507 | $ | 4,086,010 | $ | (1,077,503 | ) | (26 | )% |
Three Months Ended December 31, | Change | Six Months Ended December 31, | Change | |||||||||||||||||||||||||||||
2022 | 2021 | Dollars | Percent | 2022 | 2021 | Dollars | Percent | |||||||||||||||||||||||||
Sales and marketing | $ | 4,339,684 | $ | 4,079,035 | $ | 260,649 | 6 | % | $ | 7,447,630 | $ | 6,809,187 | $ | 638,443 | 9 | % |
Three Months Ended September 30, | Change | |||||||||||||||
2023 | 2022 | Dollars | Percent | |||||||||||||
Sales and marketing | $ | 2,721,965 | $ | 3,107,946 | $ | (385,981 | ) | (12 | )% |
Three Months Ended December 31, | Change | Six Months Ended December 31, | Change | |||||||||||||||||||||||||||||
2022 | 2021 | Dollars | Percent | 2022 | 2021 | Dollars | Percent | |||||||||||||||||||||||||
General and administrative | $ | 1,187,955 | $ | 1,189,559 | $ | (1,604 | ) | (0 | )% | $ | 2,601,431 | $ | 2,773,835 | $ | (172,404 | ) | (6 | )% |
Three Months Ended September 30, | Change | |||||||||||||||
2023 | 2022 | Dollars | Percent | |||||||||||||
General and administrative | $ | 1,854,268 | $ | 1,413,476 | $ | 440,792 | 31 | % |
Three Months Ended December 31, | Change | Six Months Ended December 31, | Change | |||||||||||||||||||||||||||||
2022 | 2021 | Dollars | Percent | 2022 | 2021 | Dollars | Percent | |||||||||||||||||||||||||
Interest income | $ | 59,574 | $ | 490 | $ | 59,084 | * | % | $ | 99,776 | $ | 845 | $ | 98,931 | * | % |
Three Months Ended September 30, | Change | |||||||||||||||
2023 | 2022 | Dollars | Percent | |||||||||||||
Interest income | $ | 92,260 | $ | 40,201 | $ | 52,059 | 129 | % |
Three Months Ended December 31, | Change | Six Months Ended December 31, | Change | |||||||||||||||||||||||||||||
2022 | 2021 | Dollars | Percent | 2022 | 2021 | Dollars | Percent | |||||||||||||||||||||||||
Loss on foreign currency exchange | $ | - | $ | - | $ | - | - | % | $ | - | $ | 34 | $ | (34 | ) | (100 | )% |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Period | Total Number of Shares Purchased | Average Price Paid per share | Total Number of shares Purchased as Part of Publicly Announced Plans or Programs(1) | Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs | ||||||||||||
October 1, 2022 – October 31, 2022 | - | $ | - | - | $ | - | ||||||||||
November 1, 2022 – November 30, 2022 | - | $ | - | - | $ | - | ||||||||||
December 1, 2022 – December 31, 2022 | - | $ | - | - | $ | - | ||||||||||
Total | - | $ | - | - | $ | 4,510,021 |
Period | Total Number of Shares Purchased | Average Price Paid per share | Total Number of shares Purchased as Part of Publicly Announced Plans or Programs(1) | Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs | ||||||||||||
July 1, 2023 – July 31, 2023 | - | $ | - | - | $ | 4,510,021 | ||||||||||
August 1, 2023 – August 31, 2023 | - | $ | - | - | $ | 4,510,021 | ||||||||||
September 1, 2023 – September 30, 2023 | - | $ | - | - | $ | 4,510,021 | ||||||||||
Total | - | $ | - | - | $ | 4,510,021 |
(1) | On May 5, 2022, we announced that our Board of Directors had approved a share repurchase program to permit us to repurchase up to $5.00 million worth of our issued and outstanding common stock over the three-year period ending April 29, 2025. |
Exhibit No. | Description | |
Certification by Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
Certification by Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
Certification by Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
Certification by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase document | |
104 | Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document contained in Exhibit 101 |
CHARLES & COLVARD, LTD. | ||
By: | /s/ Don O’Connell | |
Don O’Connell | ||
President and Chief Executive Officer | ||
By: | /s/ Clint J. Pete | |
Clint J. Pete | ||
Chief Financial Officer | ||
(Principal Financial Officer and Chief Accounting Officer) |