Charles & Colvard (CTHR) 10-K 6 Sep 19 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2019	Aug. 29, 2019	Dec. 31, 2018
Cover [Abstract]
Entity Registrant Name	CHARLES & COLVARD LTD
Entity Central Index Key	0001015155
Current Fiscal Year End Date	--06-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Public Float			$ 15,818,991
Entity Common Stock, Shares Outstanding		28,983,069
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Document Annual Report	true
Document Transition Report	false
Entity Tax Identification Number	56-1928817
Entity Address, State or Province	NC

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 12,465,483	$ 3,393,186	$ 4,594,007
Restricted cash	541,062	0	0
Accounts receivable, net	1,962,471	1,765,722	3,377,451
Inventory, net	11,909,792	10,979,891	11,208,658
Prepaid expenses and other assets	989,559	916,162	969,857
Total current assets	27,868,367	17,054,961	20,149,973
Long-term assets:
Inventory, net	21,823,928	20,848,647	19,764,959
Property and equipment, net	1,026,098	1,144,198	1,242,200
Intangible assets, net	97,373	34,833	8,597
Other assets	330,615	389,868	64,978
Total long-term assets	23,278,014	22,417,546	21,080,734
TOTAL ASSETS	51,146,381	39,472,507	41,230,707
Current liabilities:
Accounts payable	3,372,172	4,170,952	4,466,163
Accrued expenses and other liabilities	1,325,608	618,945	980,800
Total current liabilities	4,697,780	4,789,897	5,446,963
Long-term liabilities:
Deferred rent	236,745	393,051	463,526
Accrued income taxes	492,832	471,126	461,592
Total long-term liabilities	729,577	864,177	925,118
Total liabilities	5,427,357	5,654,074	6,372,081
Commitments and contingencies (Note 9)
Shareholders' equity:
Common stock, no par value; 50,000,000 shares authorized; 28,027,569, 21,705,173 and 21,580,102 shares issued and outstanding at June 30, 2019, June 30, 2018 and December 31, 2017, respectively	54,342,864	54,243,816	54,243,816
Additional paid-in capital	24,488,147	14,962,071	14,726,438
Accumulated deficit	(33,111,987)	(35,387,454)	(34,111,628)
Total shareholders' equity	45,719,024	33,818,433	34,858,626
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 51,146,381	$ 39,472,507	$ 41,230,707

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2017
Shareholders' equity:
Common stock, par value (in dollars per share)	$ 0	$ 0	$ 0
Common stock, shares authorized (in shares)	50,000,000	50,000,000	50,000,000
Common stock, shares issued (in shares)	28,027,569	21,705,173	21,580,102
Common stock, shares outstanding (in shares)	28,027,569	21,705,173	21,580,102

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2017
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]
Net sales	$ 13,163,048	$ 32,244,109	$ 27,032,964
Costs and expenses:
Cost of goods sold	8,298,286	17,352,167	15,470,617
Sales and marketing	3,856,796	7,983,506	7,477,354
General and administrative	2,601,554	4,640,810	4,689,823
Research and development	0	2,069	3,714
Total costs and expenses	14,756,636	29,978,552	27,641,508
Income (Loss) from operations	(1,593,588)	2,265,557	(608,544)
Other income (expense):
Interest income	0	11,022	0
Interest expense	(293)	(2,198)	(541)
Loss on foreign currency exchange	(5)	(344)	0
Gain on insurance claim settlement	0	0	183,217
Other expense	0	(13)	0
Total other income (expense), net	(298)	8,467	182,676
Income (Loss) before income taxes	(1,593,886)	2,274,024	(425,868)
Income tax benefit (expense)	318,060	1,443	(27,609)
Net income (loss)	$ (1,275,826)	$ 2,275,467	$ (453,477)
Net income (loss) per common share:
Basic (in dollars per share)	$ (0.06)	$ 0.10	$ (0.02)
Diluted (in dollars per share)	$ (0.06)	$ 0.10	$ (0.02)
Weighted average number of shares used in computing net income (loss) per common share:
Basic (in shares)	21,406,487	21,860,699	21,193,793
Diluted (in shares)	21,406,487	22,111,223	21,193,793

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2016	$ 54,243,816	$ 14,282,956	$ (33,658,151)	$ 34,868,621
Balance (in shares) at Dec. 31, 2016	21,369,885
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	$ 0	443,482	0	443,482
Issuance of restricted stock	$ 0	0	0	0
Issuance of restricted stock (in shares)	210,217
Net income (loss)	$ 0	0	(453,477)	(453,477)
Balance at Dec. 31, 2017	$ 54,243,816	14,726,438	(34,111,628)	34,858,626
Balance (in shares) at Dec. 31, 2017	21,580,102
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	$ 0	235,633	0	235,633
Issuance of restricted stock	$ 0	0	0	0
Issuance of restricted stock (in shares)	125,071
Net income (loss)	$ 0	0	(1,275,826)	(1,275,826)
Balance at Jun. 30, 2018	$ 54,243,816	14,962,071	(35,387,454)	33,818,433
Balance (in shares) at Jun. 30, 2018	21,705,173
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock	$ 0	9,058,568	0	9,058,568
Issuance of common stock (in shares)	6,250,000
Stock-based compensation	$ 0	502,805	0	502,805
Issuance of restricted stock	$ 0	0	0	0
Issuance of restricted stock (in shares)	19,896
Stock option exercises	$ 99,048	(35,297)	0	63,751
Stock option exercises (in shares)	52,500
Net income (loss)	$ 0	0	2,275,467	2,275,467
Balance at Jun. 30, 2019	$ 54,342,864	$ 24,488,147	$ (33,111,987)	$ 45,719,024
Balance (in shares) at Jun. 30, 2019	28,027,569

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (1,275,826)	$ 2,275,467	$ (453,477)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	229,993	481,319	422,018
Stock-based compensation	235,633	502,805	443,482
Provision for (recovery of) uncollectible accounts	(4,511)
Provision for doubtful accounts		27,056	28,000
Provision for sales returns	110,390	98,000	122,000
Provision for inventory reserves	0	393,000	598,000
Provision for accounts receivable discounts	22,802	6,275	0
Gain on insurance claim settlement	0	0	(183,217)
Changes in operating assets and liabilities:
Accounts receivable	1,483,048	(328,080)	(732,825)
Inventory	(854,921)	(2,298,182)	(3,503,032)
Prepaid expenses and other assets, net	(271,195)	(14,144)	(36,250)
Accounts payable	(295,211)	(798,780)	489,014
Deferred rent	(70,475)	(156,306)	(131,390)
Accrued income taxes	9,534	21,706	27,609
Accrued expenses and other liabilities	(361,855)	706,663	349,693
Net cash provided by (used in) operating activities	(1,042,594)	916,799	(2,560,375)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(130,649)	(361,440)	(271,390)
Payments for intangible assets	(27,578)	(64,319)	(1,501)
Net cash used in investing activities	(158,227)	(425,759)	(272,891)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock, net of offering costs	0	9,058,568	0
Stock option exercises	0	63,751	0
Net cash provided by financing activities	0	9,122,319	0
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(1,200,821)	9,613,359	(2,833,266)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD	4,594,007	3,393,186	7,427,273
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	3,393,186	13,006,545	4,594,007
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	293	2,198	541
Cash paid during the period for income taxes	$ 43,774	$ 73,562	$ 84,786

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	12 Months Ended
	Jun. 30, 2019
DESCRIPTION OF BUSINESS [Abstract]
DESCRIPTION OF BUSINESS	1. DESCRIPTION OF BUSINESS Charles & Colvard, Ltd. (the “Company”), a North Carolina corporation founded in 1995, manufactures, markets, and distributes Charles & Colvard Created Moissanite ®

BASIS OF PRESENTATION AND SIGNI

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Jun. 30, 2019
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation – All intercompany accounts have been eliminated. Change in Fiscal Year-End – Use of Estimates – T “ ” Change in Accounting Policy – Revenue Recognition The Company applied this new accounting standard using the modified retrospective approach. Based on the Company’s analysis, the timing and measurement of revenues under the new revenue recognition guidance is consistent with the Company’s prior policies. Accordingly, no adjustment was required to the Company’s opening balance of equity as of January 1, 2018. Except for required disclosures of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, the changes resulting from the adoption of the new accounting standard did not have a material effect on the Company’s consolidated financial statements. Comparative prior period information for the calendar year ended December 31, 2017 has not been adjusted and continues to be reported under the accounting guidance in effect prior to the change of accounting. Cash and Cash Equivalents – Restricted Cash Restricted Cash – White Oak Commercial Finance, LLC (“White Oak”) The Company has full access to its cash balances without restriction following the period of time such cash is held by White Oak. For additional information regarding the Company’s asset-based revolving credit facility, see Note 10, “Line of Credit.” The reconciliation of cash, cash equivalents, and restricted cash, as presented on the Consolidated Statements of Cash Flows, consists of the following as of the dates presented: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Cash and cash equivalents $ 12,465,483 $ 3,393,186 $ 4,594,007 Restricted cash 541,062 - - Total cash, cash equivalents and restricted cash $ 13,006,545 $ 3,393,186 $ 4,594,007 Concentration of Credit Risk – Trade receivables potentially subject the Company to credit risk. Payment terms on trade receivables for the Company’s Traditional segment customers are generally between 30 and 90 days, . The Company extends credit to its customers based upon a number of factors, including an evaluation of the customer’s financial condition and credit history that is verified through trade association reference services, the customer’s payment history with the Company, the customer’s reputation in the trade, and/or an evaluation of the Company’s opportunity to introduce its moissanite jewels or finished jewelry featuring moissanite to new or expanded markets. See Note 13, “Major Customers and Concentration of Credit Risk”, for further discussion of credit risk within trade accounts receivable. Accounts Receivable Reserves – The following are reconciliations of the allowance for sales returns balances as of the periods presented: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Balance, beginning of period $ 648,000 $ 537,000 $ 415,000 Additions charged to operations 4,533,077 2,462,049 3,878,736 Sales returned (4,435,077 ) (2,351,049 ) (3,756,736 ) Balance, end of period $ 746,000 $ 648,000 $ 537,000 The second reserve is an allowance for doubtful accounts for estimated losses resulting from the failure of the Company’s customers to make required payments. This allowance reduces trade accounts receivable to an amount expected to be collected. The Company generally uses an internal collection effort, which may include its sales personnel as it deems appropriate. After all internal collection efforts have been exhausted, the Company generally writes off the account receivable. Any accounts with significant balances are reviewed separately to determine an appropriate allowance based on the facts and circumstances of the specific account. on these criteria, management determined that allowances for doubtful accounts receivable of $249,000, $233,000 and $254,000 at June 30, 2019, June 30, 2018 and December 31, 2017 The following are reconciliations of the allowance for doubtful accounts balances as of the periods presented: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Balance, beginning of period $ 233,000 $ 254,000 $ 226,000 Additions (reductions) charged to operations 27,056 (4,511 ) 28,000 Write-offs, net of recoveries (11,056 ) (16,489 ) - Balance, end of period $ 249,000 $ 233,000 $ 254,000 Although the Company believes that its reserves are adequate, if the financial condition of its customers deteriorates, resulting in an impairment of their ability to make payments, or if it underestimates the allowances required, additional allowances may be necessary, Inventories - Inventory costs include direct material and labor, inbound freight, purchasing and receiving costs, inspection costs, and warehousing costs. Each accounting period, the Company evaluates the valuation and classification of inventories including the need for potential adjustments to inventory-related reserves, which also include significant estimates by management. The Company’s inventory-related valuation allowances are recorded in the aggregate rather than an individual item approach for each obsolescence, rework, and shrinkage valuation allowance. Property and Equipment – Machinery and equipment 5 to 12 years Computer hardware 3 to 5 years Computer software 3 years Furniture and fixtures 5 to 10 years Leasehold improvements Shorter of the estimated useful life or the lease term Intangible Assets – Impairment of Long-Lived Assets – whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of the asset to future net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment is measured as the amount by which the carrying amount exceeds the fair value and is recognized as an operating expense in the period in which the determination is made. Assets to be disposed are reported at the lower of the carrying amount or fair value less costs to sell once the held-for-sale criteria are met. As of June 30, 2019, the Company did not identify any indicators of long-lived asset impairment. In addition to the recoverability assessment, the Company routinely reviews the remaining estimated useful lives of its long-lived assets. Any reduction in the useful-life assumption will result in increased depreciation and amortization expense in the period when such determination is made, as well as in subsequent periods. Revenue Recognition – Revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. To achieve this principle, the Company performs the following five steps: (i) identification of a contract with a customer; (ii) identification of any separate performance obligations; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract; and (v) recognition of revenue when the Company has satisfied the underlying performance obligations. The Company recognizes substantially all of its revenue at a point in time when control of the Company’s goods has passed to the customer, which typically occurs upon shipment, with the exception of consigned goods. The Company considers its sole performance obligation related to the shipment of goods satisfied at the time this control is transferred. Customer payment terms for these shipments typically range between 30- and 90-days. The Company has elected to treat shipping and handling performed after control has transferred to customers as a fulfillment activity, and additionally, has elected the practical expedient to report sales taxes on a net basis. The Company records shipping and handling expense related to product sales as cost of sales. The Company has a variable consideration element related to most of its contracts in the form of product return rights. At the time revenue is recognized, an allowance for estimated returns is established and any change in the allowance for returns is charged against net sales in the current period. For the Company’s Traditional segment and Online Channels segment customers (excluding those of charlesandcolvard.com), the returns policy generally allows for the return of jewels and finished jewelry with a valid reason for credit within 30 days of shipment. The Company’s charlesandcolvard.com customers can return purchases for any reason within 60 days of such purchase in accordance with the Company’s returns policy as disclosed on the charlesandcolvard.com website. Periodically, the Company ships loose jewel goods and finished goods to Traditional segment customers on consignment terms. Under these consignment terms, the customer assumes the risk of loss and has an absolute right of return for a specified period that typically ranges from six months to one year. The Company’s Online Channels segment and Traditional segment customers are generally required to make payments on consignment shipments within 60 days upon the customer informing the Company that it will keep the inventory. Accordingly, the Company does not recognize revenue on these consignment transactions until the earlier of (i) the customer informing the Company that it will keep the inventory; (ii) the expiration of the right of return period; or (iii) the customer informing the Company that the inventory has been sold. Certain Traditional segment finished jewelry customers have migrated from consignment arrangements whereby the terms were strictly consignment-only to that of a blended program whereby the terms comprise both consignment and sale of asset arrangements. In March 2019, the Company entered into a nonmonetary transaction with a Raleigh, North Carolina, based professional sports team. In accordance with the terms of the agreement, in exchange for a specific quantity of finished jewelry items the Company received certain sponsorship and advertising benefits, which based on the sports team’s current sponsorship and advertising market rate card prices, are valued at approximately $117,000. The Company’s finished jewelry in connection with this transaction, the cost of which is based on the Company’s stated inventory average cost accounting method, was designed and produced to meet discrete specifications and branding requirements of the professional sports team. In accordance with the Company’s revenue recognition policy, it recognized the full amount of the sponsorship and advertising benefits as gross revenue upon delivery of the finished jewelry in April 2019 and the deferred cost of the advertising is recorded and classified within prepaid expenses and other assets in the Company’s Consolidated Balance Sheet and is being amortized and recognized in sales and marketing expenses over the professional sports team’s current competitive season that runs from April through September 2019. The Company presents disaggregated net sales by its Online Channels segment and its Traditional segment for both finished jewelry and loose jewels product lines. The Company also presents disaggregated net sales by geographic area between the United States and international locations. For financial reporting purposes, disaggregated net sales amounts are presented in Note 3, “Segment Information and Geographic Data.” Returns Asset and Refund Liabilities In connection with the Company’s adoption of the he Company established a returns asset account and a refund liabilities account to record the effects of its estimated product returns and sales returns allowance. The Company’s returns asset and refund liabilities are updated at the end of each financial reporting period and the effect of such changes are accounted for in the period in which such changes occur. The Company estimates anticipated product returns in the form of a refund liability based on historical return percentages and current period sales levels. The Company also accrues a related returns asset for goods expected to be returned in salable condition, less any expected costs to recover such goods, including return shipping costs that the Company may incur. As of June 30, 2019, June 30, 2018 and December 31, 2017, the Company’s refund liabilities balances were $746,000, $648,000 and $537,000, respectively, and are included as allowances for sales returns within accounts receivable, net, in the accompanying Consolidated Balance Sheets. As of June 30, 2019, June 30, 2018 and December 31, 2017, the Company’s returns asset balances were $279,000, $250,000 and $0, respectively, and are included within prepaid expenses and other assets in the accompanying Consolidated Balance Sheets. Prior to the adoption of the new Cost of Goods Sold – Advertising Costs – The Company also offers a cooperative advertising program to certain of its distributor and retail partners that reimburses, via a credit towards future purchases, a portion of their marketing costs based on the customers’ net purchases from the Company and is subject to the customer providing documentation of all advertising performed that includes the Company’s products. For the fiscal year ended June 30, 2019, the transition period ended June 30, 2018 and the calendar year ended December 31, 2017, these approximate amounts were $381,000, $154,000 and $210,000, respectively, and are included as a component of sales and marketing expenses. Advertising expenses, inclusive of the cooperative advertising program, for the fiscal year ended June 30, 2019, the transition period ended June 30, 2018 and the calendar year ended December 31, 2017, were approximately $2.82 million, $1.09 million and $1.94 million, respectively. Sales and Marketing – charlesandcolvard.com, LLC, wholly owned operating subsidiary. General and Administrative – Research and Development – Stock-Based Compensation – The Company recognizes compensation expense for stock-based awards based on estimated fair values on the date of grant. Fair value of stock options using the Black-Scholes-Merton option pricing model is estimated on the date of grant utilizing certain assumptions for dividend yield, expected volatility, risk-free interest rate, and expected lives of the awards, as follows: Dividend Yield. Expected Volatility. Volatility is a measure of the amount by which a financial variable such as share price has fluctuated (historical volatility) or is expected to fluctuate (expected volatility) during a period. ; Risk-Free Interest Rate. Expected Lives. The assumptions used in calculating the fair value of share-based payment awards represent management’s best estimates, but these estimates involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and the Company uses different assumptions, the Company’s stock-based compensation expense could be materially different in the future. In addition, the Company is required to estimate the expected forfeiture rates of stock-based awards and only recognize expense for those shares expected to vest. In estimating the Company’s forfeiture rates, the Company analyzed its historical forfeiture rates, the remaining lives of unvested stock-based awards, and the number of vested awards as a percentage of total awards outstanding. If the Company’s actual forfeiture rates are materially different from its estimates, or if the Company re-evaluates the forfeiture rates in the future, the stock-based compensation expense could be significantly different from what the Company has recorded in the current period. Income Taxes – In light of the Tax Cuts and Jobs Act (the “Tax Act”) enacted in December 2017, the Company provisionally recorded its U.S. deferred taxes as of the calendar year ended December 31, 2017, based on the federal corporate income tax rate of 21%. In June 2018, the Company filed its 2017 , and in conjunction therewith, finalized its accounting policy with respect to accounting for its deferred income taxes as of and for the transition period ended June 30, 2018. Net Income (Loss) per Common Share – The following table reconciles the differences between the basic and diluted net income (loss) per share presentations: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Numerator: Net income (loss) $ 2,275,467 $ (1,275,826 ) $ (453,477 ) Denominator: Weighted average number of common shares outstanding: Basic 21,860,699 21,406,487 21,193,793 Effect of dilutive securities 250,524 - - Diluted 22,111,223 21,406,487 21,193,793 Net income (loss) per common share: Basic $ 0.10 $ (0.06 ) $ (0.02 ) Diluted 0.10 (0.06 ) (0.02 ) For the fiscal year ended June 30, 2019, the six-month period ended June 30, 2018, and the calendar year ended December 31, 2017, stock options to purchase approximately 2.33 million, 2.39 million and 2.38 million shares, respectively, were excluded from the computation of diluted net income (loss) per common share because the exercise price of the stock options was greater than the average market price of the common shares or the effect of inclusion of such amounts would be anti-dilutive to net income (loss) per common share. For the fiscal year ended June 30, 2019, no restricted shares that were issued but not yet vested were excluded from the computation of diluted net income per common share. For the transition period ended June 30, 2018 and the calendar year ended December 31, 2017, approximately 264,000 and 355,000, respectively, of restricted shares that were issued but not yet vested were excluded from the computation of diluted net loss per common share because the effects of the inclusion of such number of shares would be anti-dilutive to net income or loss per common share. Additionally, the underwriters’ over-allotment option to purchase 630,500 shares is excluded from the computation of diluted net income per share as of June 30, 2019, because the effects of inclusion would be anti-dilutive to net income per common share. Recently Adopted/Issued Accounting Pronouncements – which requires lessees to recognize a right-of-use (“ROU”) asset and lease liability on the balance sheet for most lease arrangements and expands disclosures about leasing arrangements for both lessees and lessors, among other items. The new standard is effective for fiscal years beginning after December 15, 2018, which makes the new standard effective for the Company on July 1, 2019. The Company may apply the transition provisions of the new guidance, as amended, either at the beginning of the earliest period presented in the Company’s Form 10-K for the fiscal year ending June 30, 2020, which would be July 1, 2018, or on the effective date of adoption, which would be July 1, 2019. Among other requirements, the transition provisions require the lessee to recognize an ROU asset and liability for most existing lease arrangements on the date the transition provisions are applied. The Company has elected to apply the transition provisions of this new standard on July 1, 2019. Therefore, periods prior to the effective date of adoption will continue to be reported consistent with All of the Company’s existing lease arrangements are classified as operating leases, which will continue to be classified as operating under the new guidance. Upon adoption of the new standard on July 1, 2019, the Company will record an ROU asset and lease liability in amounts that will be material on its Consolidated Balance Sheet for the Company’s lease arrangements. Management does not anticipate that adoption of this new guidance will have a significant impact on the Company’s net earnings or cash flows. In June 2018, the FASB issued guidance that is intended to reduce cost and complexity and to improve financial reporting for share-based payments to nonemployees. This new guidance is effective for fiscal years beginning after December 15, 2018. The Company will adopt the new guidance as of July 1, 2019, as required, and the impact of the adoption is not expected to be material to the Company’s financial statements.

SEGMENT INFORMATION AND GEOGRAP

SEGMENT INFORMATION AND GEOGRAPHIC DATA	12 Months Ended
	Jun. 30, 2019
SEGMENT INFORMATION AND GEOGRAPHIC DATA [Abstract]
SEGMENT INFORMATION AND GEOGRAPHIC DATA	3. SEGMENT INFORMATION AND GEOGRAPHIC DATA The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making operating decisions and assessing performance as the source of the Company’s operating and reportable segments. The Company manages its business through two operating and reportable segments based on its distribution channels to sell its product lines – finished jewelry and loose jewels: its “Online Channels” segment, which consists of e-commerce outlets including charlesandcolvard.com, third-party online marketplaces, drop-ship, and other pure-play, exclusively e-commerce outlets; and its “Traditional” segment, which consists of wholesale and retail customers. The accounting policies of the Online Channels segment and Traditional segment are the same as those described in Note 2, “Basis of Presentation and Significant Accounting Policies.” The Company evaluates the financial performance of its segments based on net sales; product line gross profit, or the excess of product line sales over product line cost of goods sold; and operating income (loss). The Company’s product line cost of goods sold is defined as product cost of goods sold, excluding non-capitalized expenses from the Company’s manufacturing and production control departments, comprising personnel costs, depreciation, rent, utilities, and corporate overhead allocations; freight out; inventory valuation allowance adjustments; and other inventory adjustments, comprising costs of quality issues, damaged goods, and inventory write-downs. The Company allocates certain general and administrative expenses between its Online Channels segment and its Traditional segment based on net sales and number of employees to arrive at segment operating income (loss). Unallocated expenses remain in its Traditional segment. Summary financial information by reportable segment for the periods presented is as follows: Year Ended June 30, 2019 Online Channels Traditional Total Net sales Finished jewelry $ 12,641,687 $ 2,815,656 $ 15,457,343 Loose jewels 3,697,069 13,089,697 16,786,766 Total $ 16,338,756 $ 15,905,353 $ 32,244,109 Product line cost of goods sold Finished jewelry $ 5,220,551 $ 1,638,561 $ 6,859,112 Loose jewels 1,583,404 6,659,426 8,242,830 Total $ 6,803,955 $ 8,297,987 $ 15,101,942 Product line gross profit Finished jewelry $ 7,421,136 $ 1,177,095 $ 8,598,231 Loose jewels 2,113,665 6,430,271 8,543,936 Total $ 9,534,801 $ 7,607,366 $ 17,142,167 Operating income $ 1,643,552 $ 622,005 $ 2,265,557 Depreciation and amortization $ 172,819 $ 308,500 $ 481,319 Capital expenditures $ 69,975 $ 291,465 $ 361,440 Six Months Ended June 30, 2018 Online Channels Traditional Total Net sales Finished jewelry $ 4,490,984 $ 1,672,066 $ 6,163,050 Loose jewels 1,878,388 5,121,660 6,999,998 Total $ 6,369,322 $ 6,793,726 $ 13,163,048 Product line cost of goods sold Finished jewelry $ 1,972,862 $ 1,462,371 $ 3,435,233 Loose jewels 951,664 2,688,560 3,640,224 Total $ 2,924,526 $ 4,150,931 $ 7,075,457 Product line gross profit Finished jewelry $ 2,518,122 $ 209,695 $ 2,727,817 Loose jewels 926,674 2,433,100 3,359,774 Total $ 3,444,796 $ 2,642,795 $ 6,087,591 Operating loss $ (243,832 ) $ (1,349,756 ) $ (1,593,588 ) Depreciation and amortization $ 59,409 $ 170,584 $ 229,993 Capital expenditures $ 29,689 $ 100,960 $ 130,649 Year Ended December 31, 2017 Online Channels Traditional Total Net sales Finished jewelry $ 7,936,773 $ 2,515,443 $ 10,452,216 Loose jewels 3,149,972 13,430,776 16,580,748 Total $ 11,086,745 $ 15,946,219 $ 27,032,964 Product line cost of goods sold Finished jewelry $ 3,615,815 $ 1,610,845 $ 5,226,660 Loose jewels 1,526,358 6,998,485 8,524,843 Total $ 5,142,173 $ 8,609,330 $ 13,751,503 Product line gross profit Finished jewelry $ 4,320,958 $ 904,598 $ 5,225,556 Loose jewels 1,623,614 6,432,291 8,055,905 Total $ 5,944,572 $ 7,336,889 $ 13,281,461 Operating income (loss) $ 228,253 $ (836,797 ) $ (608,544 ) Depreciation and amortization $ 121,710 $ 300,308 $ 422,018 Capital expenditures $ 147,446 $ 123,944 $ 271,390 The Company does not allocate any assets to the reportable segments, and therefore, no asset information is reported to the chief operating decision-maker or disclosed in the financial information for each segment. The reconciliations of the Company’s product line cost of goods sold to cost of goods sold, as reported in the consolidated financial statements for the periods presented, are as follows: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Product line cost of goods sold $ 15,101,942 $ 7,075,457 $ 13,751,503 Non-capitalized manufacturing and production control expenses 1,442,446 805,400 1,352,311 Freight out 578,772 272,790 417,074 Inventory valuation allowances 393,000 - 598,000 Other inventory adjustments (163,993 ) 144,639 (648,271 ) Cost of goods sold $ 17,352,167 $ 8,298,286 $ 15,470,617 The Company recognizes sales by geographic area based on the country in which the customer is based. Sales to international end consumers made through our transactional website, charlesandcolvard.com, are included in international sales for financial reporting purposes. During periods prior to the quarterly period ended December 31, 2018, sales to international end consumers made through charlesandcolvard.com were included in U.S. sales because products were shipped and invoiced to a U.S.-based intermediary party that assumed all international shipping and credit risks. A portion of the Company’s Traditional segment sales made to international wholesale distributors represents products sold internationally that may be re-imported to U.S. retailers. All intangible assets and property and equipment as of June 30, 2019, June 30, 2018 and December 31, 2017 are held and located in the United States. The following presents net sales data by geographic area for the periods presented: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Net sales: United States $ 27,979,835 $ 12,121,003 $ 25,176,220 International 4,264,274 1,042,045 1,856,744 Total $ 32,244,109 $ 13,163,048 $ 27,032,964

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Jun. 30, 2019
FAIR VALUE MEASUREMENTS [Abstract]
FAIR VALUE MEASUREMENTS	4. FAIR VALUE MEASUREMENTS U Level 1 Level 2 Level 3 The Company evaluates assets and liabilities subject to fair value measurements on a recurring and non-recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made by management of the Company. The financial instruments identified as subject to fair value measurements on a recurring basis are cash and cash equivalents, trade accounts receivable, and trade accounts payable. All financial instruments are reflected in the Consolidated Balance Sheets at carrying value, which approximates fair value due to the short-term nature of these financial instruments. Assets that are measured at fair value on a non-recurring basis include property and equipment, leasehold improvements, and intangible assets, comprising patents, license rights, and trademarks. These items are recognized at fair value when they are considered to be impaired.

INVENTORIES

INVENTORIES	12 Months Ended
	Jun. 30, 2019
INVENTORIES [Abstract]
INVENTORIES	5. INVENTORIES The Company’s total inventories, net of reserves, are as follows as of the dates presented: June 30, December 31, 2019 2018 2017 Raw materials $ 4,450,478 $ 5,083,436 $ 4,853,049 Work-in-process 10,871,823 10,659,786 9,219,383 Finished goods 18,557,224 17,483,773 17,896,992 Finished goods on consignment 2,086,084 523,971 1,093,752 Supplies inventory 129,111 45,572 75,441 Less: inventory reserves (2,361,000 ) (1,968,000 ) (2,165,000 ) Total classified inventories $ 33,733,720 $ 31,828,538 $ 30,973,617 Short-term portion $ 11,909,792 $ 10,979,891 $ 11,208,658 Long-term portion 21,823,928 20,848,647 19,764,959 Total short- and long-term inventories $ 33,733,720 $ 31,828,538 $ 30,973,617 The Company’s work-in-process inventories include raw SiC crystals on which processing costs, such as labor and sawing, have been incurred and components, such as metal castings and finished good moissanite jewels, that have been issued to jobs in the manufacture of finished jewelry. The Company’s moissanite jewel manufacturing process involves the production of intermediary shapes, called “preforms,” that vary depending upon the size and shape of the finished jewel. To maximize manufacturing efficiencies, preforms may be made in advance of current finished inventory needs but remain in work-in-process inventories. As of June 30, 2019, June 30, 2018 and December 31, 2017, work-in-process inventories issued to active production jobs approximated $1.23 million, $2.45 million and $2.99 million, respectively. The Company’s jewels do not degrade in quality over time and inventory generally consists of the shapes and sizes most commonly used in the jewelry industry. In addition, the majority of jewel inventory is not mounted in finished jewelry settings and is therefore not subject to fashion trends nor is obsolescence a significant factor. The Company manufactures finished jewelry featuring moissanite. Relative to loose moissanite jewels, finished jewelry is more fashion-oriented and subject to styling trends that could render certain designs obsolete over time. The majority of the Company’s finished jewelry featuring moissanite is held in inventory for resale and largely consists of such core designs as stud earrings, solitaire and three-stone rings, pendants, and bracelets that tend not to be subject to significant obsolescence risk due to their classic styling. In addition, the Company generally holds smaller quantities of designer-inspired and trend moissanite fashion jewelry that is available for resale through retail companies and through its Online Channels segment. The Company also carries a limited amount of inventory as part of its sample line that is used in the selling process to its customers. The Company’s continuing operating subsidiary The Company’s total inventories, net of reserves, consisted of the following as of the dates presented: June 30, December 31, 2019 2018 2017 Finished jewelry: Raw materials $ 643,797 $ 595,649 $ 564,689 Work-in-process 487,680 1,196,268 890,664 Finished goods 6,332,533 5,517,951 6,304,747 Finished goods on consignment 1,867,549 476,648 1,007,471 Total finished jewelry 9,331,559 7,786,516 8,767,571 Loose jewels: Raw materials 3,806,681 4,487,787 4,288,360 Work-in-process 10,384,143 9,463,518 8,328,719 Finished goods 9,878,691 10,015,822 9,487,245 Finished goods on consignment 203,535 29,323 26,281 Total loose jewels 24,273,050 23,996,450 22,130,605 Total supplies inventory 129,111 45,572 75,441 Total inventory $ 33,733,720 $ 31,828,538 $ 30,973,617 Total net finished jewelry inventories at June 30, 2019, June 30, 2018 and December 31, 2017, including inventory on consignment net of reserves and finished jewelry featuring moissanite manufactured by the Company, were $9.33 million, $7.79 million, and $8.77 million, respectively. Total net loose jewel inventories at June 30, 2019, June 30, 2018 and December 31, 2017, including inventory on consignment net of reserves, were $24.27 million, $24.00 million and $22.13 million, respectively. As of June 30, 2019, June 30, 2018 and December 31, 2017, management established an obsolescence reserve of $1.79 million, $1.30 million and $1.42 million, respectively. Typically, in the jewelry industry, slow-moving or discontinued lines are sold as closeouts or liquidated in alternative sales channels. Regularly, management reviews both the finished jewelry inventory and the legacy loose jewel inventory for any lower of cost or net realizable value and obsolescence issues. Accordingly, as of June 30, 2019, June 30, 2018 and December 31, 2017, management identified certain finished jewelry that was obsolete due to damage and other factors that indicate the finished jewelry is unsaleable, and established an obsolescence reserve of $19,000, $7,000 and $91,000, respectively, for the carrying costs in excess of any estimated scrap values. Likewise, with respect to the Company’s loose jewels inventory, based on current period demand, and ongoing feedback from distribution customers on the value of some of these goods, management identified some of the remaining inventory of these lower quality goods that could not be sold at its current carrying value. Accordingly, management’s analysis of items sold during the fiscal year ended June 30, 2019, resulted in an increase in the lower of cost or net realizable value reserve on this remaining inventory to approximately $1.77 million as of June 30, 2019 from $1.29 million as of June 30, 2018. This reserve balance was $1.33 million as of December 31, 2017. As of June 30, 2019, June 30, 2018 and December 31, 2017, management established a rework reserve for recut and repairs of $460,000, $534,000 and $557,000, respectively. Finished jewelry inventories at June 30, 2019, June 30, 2018 and December 31, 2017 include a repairs reserve of $0, $116,000 and $89,000, respectively. The loose jewel inventories at June 30, 2019, June 30, 2018 and December 31, 2017 included recut reserves of $460,000, $418,000 and $468,000, respectively. As of June 30, 2019, June 30, 2018 and December 31, 2017, management established a shrinkage reserve of $112,000, $136,000 and $191,000, respectively. Finished jewelry inventories at June 30, 2019, June 30, 2018 and December 31, 2017 include shrinkage reserves of $105,000, $88,000 and $173,000, respectively. The loose jewel inventories at June 30, 2019, June 30, 2018 and December 31, 2017 include shrinkage reserves of $7,000, $48,000 and $18,000, respectively. Periodically, the Company ships finished goods inventory to certain Traditional segment customers on consignment terms. Under these terms, the customer assumes the risk of loss and has an absolute right of return for a specified period. Included in the total shrinkage reserve is the shrinkage reserve for finished goods on consignment of $15,000, $18,000 and $60,000 as of June 30, 2019, June 30, 2018 and December 31, 2017, respectively, to allow for certain finished jewelry and loose jewels on consignment with certain Traditional segment customers that may not be returned or may be returned in a condition that does not meet the Company’s current grading or quality standards. Finished jewelry inventories on consignment at June 30, 2019, June 30, 2018 and December 31, 2017 include shrinkage reserves of $14,000, $7,000 and $55,000, respectively. The loose jewel inventories on consignment at June 30, 2019, June 30, 2018 and December 31, 2017 include shrinkage reserves of $1,000, $11,000 and $5,000, respectively. The need for adjustments to inventory reserves is evaluated on a period-by-period basis.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Jun. 30, 2019
PROPERTY AND EQUIPMENT [Abstract]
PROPERTY AND EQUIPMENT	6. PROPERTY AND EQUIPMENT Property and equipment consists of the following as of the dates presented: June 30, December 31, 2019 2018 2017 Computer software $ 1,512,533 $ 1,253,894 $ 1,206,465 Machinery and equipment 1,100,629 1,048,288 1,026,736 Computer hardware 1,064,302 1,026,987 1,009,008 Leasehold improvements 1,158,218 1,151,659 1,126,553 Furniture and fixtures 343,808 337,210 318,627 Total 5,179,490 4,818,038 4,687,389 Less: accumulated depreciation (4,153,392 ) (3,673,840 ) (3,445,189 ) Property and equipment, net $ 1,026,098 $ 1,144,198 $ 1,242,200 Depreciation expense for the fiscal year ended June 30, 2019, the transition period ended June 30, 2018 and the calendar year ended December 31, 2017 was approximately $480,000, $229,000, and $420,000, respectively.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Jun. 30, 2019
INTANGIBLE ASSETS [Abstract]
INTANGIBLE ASSETS	7. INTANGIBLE ASSETS Intangible assets consist of the following as of the dates presented: June 30, December 31, Weighted Average Remaining Amortization Period 2019 2018 2017 (in Years) Patents $ 1,007,497 $ 969,632 $ 958,604 15.0 Trademarks 100,331 73,877 57,325 9.5 License rights 6,718 6,718 6,718 - Total 1,114,546 1,050,227 1,022,647 Less accumulated amortization (1,017,173 ) (1,015,394 ) (1,014,050 ) Intangible assets, net $ 97,373 $ 34,833 $ 8,597 Amortization expense for the fiscal year ended June 30, 2019, the transition period ended June 30, 2018 and the calendar year ended December 31, 2017 was approximately $2,000, $1,000 and $2,000, respectively. Amortization expense on existing intangible assets is estimated to be approximately $9,000 for each of the fiscal years ending June 30, 2020, 2021 and 2022 and $8,000 for each of the fiscal years ending June 30, 2023 and 2024. The amortization expense for the remaining unamortized balance of the total intangible assets, net, will be recognized in fiscal years ending after June 30, 2024.

ACCRUED EXPENSES AND OTHER LIAB

ACCRUED EXPENSES AND OTHER LIABILITIES	12 Months Ended
	Jun. 30, 2019
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract]
ACCRUED EXPENSES AND OTHER LIABILITIES	8. ACCRUED EXPENSES AND OTHER LIABILITIES Total accrued expenses and other liabilities consist of the following as of the dates presented: June 30, December 31, 2019 2018 2017 Accrued compensation and related benefits $ 760,324 $ 359,077 $ 652,177 Accrued cooperative advertising 73,033 60,784 134,018 Deferred rent 156,306 139,558 131,389 Accrued sales tax 286,864 17,149 20,844 Other 49,081 42,377 42,372 Accrued expenses and other liabilities $ 1,325,608 $ 618,945 $ 980,800

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Jun. 30, 2019
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	9. COMMITMENTS AND CONTINGENCIES Lease Commitments On December 9, 2013, the Company entered into a Lease Agreement, as amended on December 23, 2013 and April 15, 2014 (the “Lease Agreement”), for its corporate headquarters, which occupies approximately 36,350 square feet of office, storage and light manufacturing space. The Company took possession of the leased property on May 23, 2014, once certain improvements to the leased space were completed and did not have access to the property before this date. These improvements and other lease signing and moving incentives offered by the landlord totaled approximately $550,000 and $73,000, respectively, which are being amortized over the life of the lease until October 31, 2021. Included in the Lease Agreement is a seven-month rent abatement period effective June 2014 through December 2014. The Company recognizes rent expense on a straight-line basis, giving consideration to the rent holidays and escalations, the lease signing and moving allowance to be paid to the Company, and the rent abatement. As of June 30, 2019, the Company’s future minimum payments under the operating leases were as follows: 2020 $ 625,788 2021 642,997 2022 219,723 Total $ 1,488,508 Rent expense for the fiscal year ended June 30, 2019, the transition period ended June 30, 2018 and the calendar year ended December 31, 2017 was approximately $528,000, $260,000 and $510,000, respectively. Purchase Commitments On December 12, 2014, the Company entered into an exclusive supply agreement (the “Supply Agreement”) with Cree, Inc. (“Cree”). Under the Supply Agreement, subject to certain terms and conditions including a security interest as defined, the Company agreed to exclusively purchase from Cree, and Cree agreed to exclusively supply, 100% of the Company’s required SiC materials in quarterly installments that must equal or exceed a set minimum order quantity. The initial term of the Supply Agreement was scheduled to expire on June 24, 2018, unless extended by the parties. Effective June 22, 2018, the Supply Agreement was amended to extend the expiration date to June 25, 2023. The Supply Agreement was also amended to (i) provide the Company with one option, subject to certain conditions, to unilaterally extend the term of the Supply Agreement for an additional two-year period following expiration of the initial term; (ii) establish a process by which Cree may begin producing alternate SiC material based on the Company’s specifications that will give the Company the flexibility to use the materials in a broader variety of its products; and (iii) permit the Company to purchase certain amounts of SiC materials from third parties under limited conditions. The Company’s total purchase commitment under the Supply Agreement until June 2023 is approximately $52.95 million, of which approximately $43.98 million remains to be purchased as of June 30, 2019. Over the life of the Supply Agreement, as amended, the Company’s future minimum annual purchase commitments of SiC crystals range from approximately $9 million to $12 million each year. During the fiscal year ended June 30, 2019, the transition period ended June 30, 2018 and the calendar year ended December 31, 2017, the Company purchased approximately $8.91 million, $4.89 million and $9.39 million, respectively, of SiC crystals from Cree. The Company’s purchases of SiC crystals prior to the fiscal year ended June 30, 2019 were pursuant to the terms and conditions of the Supply Agreement prior to the effective date of its amendment as of June 22, 2018.

LINE OF CREDIT

LINE OF CREDIT	12 Months Ended
	Jun. 30, 2019
LINE OF CREDIT [Abstract]
LINE OF CREDIT	10. LINE OF CREDIT On July 13, 2018, the Company and its wholly-owned subsidiary, charlesandcolvard.com, LLC (collectively, the “Borrowers”), obtained a $5.00 million asset-based revolving credit facility (the “White Oak Credit Facility”) from White Oak Commercial Finance, LLC (“White Oak”). The White Oak Credit Facility may be used for general corporate and working capital purposes, including permitted acquisitions. The White Oak Credit Facility, which matures on July 13, 2021, is guaranteed by Charles & Colvard Direct, LLC, a wholly-owned subsidiary of the Company (the “Guarantor”). Under the terms of the White Oak Credit Facility, the Borrowers must maintain at least $500,000 in excess availability at all times. The White Oak Credit Facility contains no other financial covenants. Advances under the White Oak Credit Facility are limited to a borrowing base, which is computed by applying specified advance rates to the value of the Borrowers’ eligible accounts receivable and inventory, plus the value of precious metal jewelry components, less reserves. The inclusion of inventory and precious metal jewelry components in the borrowing base was subject to the completion of an inventory appraisal, which was completed subsequent to the execution of the White Oak Credit Facility. Eligible inventory is further limited to 60% of the net borrowing base, while precious metal jewelry components are limited to $500,000. Advances may be either revolving or non-revolving. Non-revolving advances are limited to $1.00 million in aggregate principal amount outstanding and must be repaid on each January 15 (which may be effected by conversion to revolving advances, absent an event of default). There are no other mandatory prepayments or line reductions. The Company may elect to prepay advances in whole or in part at any time without penalty. In addition, the White Oak Credit Facility may be terminated by the Company at any time, subject to a $100,000 fee in the first year of the term of the White Oak Credit Facility, a $50,000 fee in the second year, and no fee thereafter. In connection with the White Oak Credit Facility, the Company will incur a non-refundable origination fee in the total amount of $125,000 that is due and payable to White Oak in three installments. The first installment in the amount of $41,667 was paid upon execution of the White Oak Credit Facility on July 13, 2018 and the second installment in the amount of $41,667 was paid on July 15, 2019. The third and final installment in the amount of $41,666 will be due and payable on July 13, 2020, or the date of termination, whichever is sooner. During the first year of the term of the White Oak Credit Facility, revolving advances will accrue interest at a rate equal to one-month LIBOR (reset monthly, and subject to a 1.25% floor) plus 3.75%, and non-revolving advances will accrue interest at such LIBOR rate plus 4.75%. Thereafter, the interest margins will reduce upon the Company’s achievement of a specified fixed charge coverage ratio. However, advances are in all cases subject to a minimum interest rate of 5.50%. Interest is calculated on an actual/360 basis and payable monthly in arrears. Principal outstanding during an event of default accrues interest at a rate 2% in excess of the rate otherwise applicable. The White Oak Credit Facility is secured by a lien on substantially all assets of the Borrowers, each of which is jointly and severally liable for all obligations thereunder. White Oak’s security interest in certain SiC materials is subordinate to Cree’s security interest in such materials pursuant to the Company’s Supply Agreement and an Intercreditor Agreement by and among the Borrowers and the Guarantor with White Oak. In addition, White Oak’s security interest in certain tangible personal property of the Company is subordinate to its landlord’s security interest in such tangible personal property. The White Oak Credit Facility is evidenced by a credit agreement, dated as of July 13, 2018 (the “Credit Agreement”), a security agreement, dated as of July 13, 2018 (the “Security Agreement”), and customary ancillary documents. The Credit Agreement, Security Agreement, and ancillary documents contain customary covenants, representations, fees, and cash dominion provisions, including a financial reporting covenant and limitations on dividends, distributions, debt, liens, loans, investments, mergers, acquisitions, divestitures, and affiliate transactions. Events of default under the White Oak Credit Facility include, without limitation, a change in control, an event of default under other indebtedness of the Borrowers or Guarantor in excess of $250,000, a material adverse change in the business of the Borrowers or Guarantor or in their ability to perform their obligations under the White Oak Credit Facility, and other defined circumstances that White Oak believes may impair the prospect of repayment. If an event of default occurs, White Oak is entitled to take enforcement action, including acceleration of amounts due under the White Oak Credit Facility and foreclosure upon collateral. The White Oak Credit Facility contains other customary terms, that include indemnity, collateral monitoring fee, minimum interest charge, expense reimbursement, yield protection, and confidentiality provisions. As of June 30, 2019, the Company had not borrowed against the White Oak Credit Facility. Prior to obtaining the White Oak Credit Facility, the Company and its wholly owned subsidiaries, Charles & Colvard Direct, LLC and charlesandcolvard.com, LLC), had a $10.00 million asset-based revolving credit facility from Wells Fargo . This asset-based revolving credit facility (the “ Wells Fargo Credit Facility”) was available for general corporate and working capital purposes, including transaction fees and expenses incurred in connection therewith, and the issuance of letters of credit up to a $1.00 million sublimit. The effective date of the Wells Fargo Credit Facility was June 25, 2014, and it was scheduled to mature on June 25, 2017. Any advances would have accrued interest at a rate equal to either (i) Wells Fargo’s three-month LIBOR rate plus 2.00%, or (ii) Wells Fargo’s Prime Rate plus 1%, each calculated on an actual/360 basis and would have been payable monthly in arrears. Principal outstanding during an event of default, which did not occur during the term of the Wells Fargo Credit Facility, would have accrued interest at a rate of 3% in excess of the above rate. The Company had not borrowed against the Wells Fargo Credit Facility as of June 25, 2018, the date upon which the Wells Fargo Credit Facility matured and was terminated in accordance with its terms.

SHAREHOLDERS' EQUITY AND STOCK-

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION	12 Months Ended
	Jun. 30, 2019
SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION [Abstract]
SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION	11. SHAREHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION Common Stock The Company is authorized to issue 50,000,000 shares of common stock, no par value. As of June 30, 2019, June 30, 2018 and December 31, 2017, it had 28,027,569, 21,705,173 and 21,580,102 shares of common stock outstanding, respectively. Holders of common stock are entitled to one vote for each share held. Preferred Stock The Board of Directors is authorized, without further shareholder approval, to issue up to 10,000,000 shares of preferred stock, no par value. The preferred stock may be issued from time to time in one or more series. No shares of preferred stock had been issued as of June 30, 2019. Dividends The Company has paid no cash dividends during the fiscal year ended June 30, 2019, the transition period ended June 30, 2018 and the calendar year ended December 31, 2017. Shelf Registration Statement The Company has an effective shelf registration statement on Form S-3 on file with the SEC which allows it to periodically offer and sell, individually or in any combination, shares of common stock, shares of preferred stock, warrants to purchase shares of common stock or preferred stock, and units consisting of any combination of the foregoing types of securities, up to a total of $25.00 million, of which . The Company’s ability to issue equity securities under its effective shelf registration statement is subject to market conditions. On June 11, 2019, the Company Pursuant to the partial exercise of the underwriters’ over-allotment option, o issued an additional 630,500 shares of its common stock . After giving effect to the partial exercise of the over-allotment option, the Company sold an aggregate of 6,880,500 shares of its common stock at a price of $1.60 per share with total gross proceeds of approximately $11.01 million, before deducting the total underwriting discount and fees and expenses of approximately $1.02 million. Equity Compensation Plans 2018 Equity Incentive Plan On November 21, 2018, the shareholders of the Company approved the adoption of the Charles & Colvard, Ltd. 2018 Equity Incentive Plan, (the “2018 Plan”). The 2018 Plan will expire by its terms on September 20, 2028. The 2018 Plan provides for the grant of equity-based awards to selected employees, directors, and consultants of the Company and its affiliates. The aggregate number of shares of the Company’s common stock that could be issued pursuant to awards granted under the 2018 Plan are not to exceed the sum of 3,300,000 plus the number of shares of common stock underlying any award granted under any stock incentive plan maintained by the Company prior to the 2018 Plan (each, a “2018 Prior Plan”) that expires, terminates or is canceled or forfeited under the terms of the 2018 Prior Plans. Stock options granted to employees under the 2018 Plan generally vest over four years and have terms of up to 10 years. The vesting schedules and terms of stock options granted to independent contractors vary depending on the specific grant, but the terms are no longer than 10 years. Stock option awards granted to members of the Board of Directors generally vest at the end of one year from the date of the grant. The vesting schedules of restricted stock awards granted to employees or independent contractors vary depending on the specific grant but are generally four years or less. Only stock options and restricted stock have been granted under the 2018 Plan. As of June 30, 2019, there were 285,025 stock options outstanding under the 2018 Plan. 2008 Stock Incentive Plan In May 2008, the shareholders of the Company approved the adoption of the Charles & Colvard, Ltd. 2008 Stock Incentive Plan, as amended on March 31, 2015 and approved by the shareholders of the Company on May 20, 2015 and further amended on March 15, 2016 and approved by the shareholders of the Company on May 18, 2016 The 2008 Plan authorized the Company to grant stock options, stock appreciation rights, restricted stock, and other equity awards to selected employees, directors, and independent contractors. The aggregate number of shares of the Company’s common stock that could be issued pursuant to awards granted under the 2008 Plan were not to exceed the sum of 6,000,000 plus any shares of common stock subject to an award granted under any stock incentive plan maintained by the Company prior to the 2008 Plan (each, a “2008 Prior Plan”) that is forfeited, cancelled, terminated, expires, or lapses for any reason without the issuance of shares pursuant to the award, or shares subject to an award granted under a 2008 Prior Plan which shares are forfeited to, or repurchased or reacquired by, the Company. Stock options granted to employees under the 2008 Plan generally vest over four years and have terms of up to 10 years. The vesting schedules and terms of stock options granted to independent contractors vary depending on the specific grant, but the terms are no longer than 10 years. Stock option awards granted to members of the Board of Directors generally vest at the end of one year from the date of the grant. The vesting schedules of restricted stock awards granted to employees or independent contractors vary depending on the specific grant but are generally four years or less. Only stock options and restricted stock had been granted under the 2008 Plan. As of June 30, 2019, June 30, 2018 and December 31, 2017, there were 2,238,613, 2,388,169 and 2,377,265 stock options outstanding under the 2008 Plan, respectively. Stock-Based Compensation The following table summarizes the components of the Company’s stock-based compensation included in net income (loss) for the periods presented: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Employee stock options $ 235,984 $ 142,096 $ 336,534 Restricted stock awards 266,821 93,537 106,948 Totals $ 502,805 $ 235,633 $ 443,482 Due to the Company’s valuation allowance against deferred tax assets as discussed further in Note 12, “Income Taxes”, any income tax benefits associated with these grants and awards for the fiscal year ended June 30, 2019, the transition period ended June 30, 2018 and the calendar year ended December 31, 2017 were fully reserved. No stock-based compensation was capitalized as a cost of inventory during the fiscal year ended June 30, 2019, the transition period ended June 30, 2018 and the calendar year ended December 31, 2017. Stock Options The following is a summary of the stock option activity for the fiscal year ended June 30, 2019, the transition period ended June 30, 2018 and the calendar year ended December 31, 2017: Shares Weighted Average Exercise Price Outstanding at December 31, 2016 2,134,898 $ 1.99 Granted 836,369 $ 0.94 Forfeited (103,000 ) $ 1.22 Expired (491,002 ) $ 2.95 Outstanding at December 31, 2017 2,377,265 $ 1.46 Granted 216,157 $ 1.27 Forfeited (173,750 ) $ 1.05 Expired (31,503 ) $ 2.17 Outstanding at June 30, 2018 2,388,169 $ 1.46 Granted 285,025 $ 1.00 Exercised (52,500 ) 1.21 Forfeited (30,000 ) $ 1.20 Expired (67,056 ) $ 1.71 Outstanding at June 30, 2019 2,523,638 $ 1.41 The weighted average grant date fair value of stock options granted during the fiscal year ended June 30, 2019, the transition period ended June 30, 2018 and the calendar year ended December 31, 2017 was $0.57, $0.68 and $0.53, respectively. The total fair value of stock options that vested during the fiscal year ended June 30, 2019, the transition period ended June 30, 2018 and the year calendar ended December 31, 2017 was approximately $176,000, $232,000 and $400,000, respectively. The fair value of each stock option is estimated on the date of grant using the Black-Scholes-Merton option pricing model with the following weighted average assumptions for stock options granted during the periods presented: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Dividend yield 0.0 % 0.0 % 0.0 % Expected volatility 61.0 % 62.8 % 63.4 % Risk-free interest rate 3.09 % 2.76 % 1.90 % Expected lives (years) 5.5 5.4 5.5 The following tables summarize information in connection with stock options outstanding at June 30, 2019: Options Outstanding Options Exercisable Options Vested or Expected to Vest Balance as of 6/30/2019 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 6/30/2019 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 6/30/2019 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price 2,523,638 6.95 $ 1.41 2,053,613 6.51 $ 1.49 2,460,292 6.91 $ 1.42 As of June 30, 2019, the unrecognized stock-based compensation expense related to unvested stock options was approximately $167,000, which is expected to be recognized over a weighted average period of approximately 18 months. The aggregate intrinsic value of stock options outstanding, exercisable, and vested or expected to vest at June 30, 2019 was approximately $1.36 million. These amounts are before applicable income taxes and represent the closing market price of the Company’s common stock at June 30, 2019, less the grant price, multiplied by the number of stock options that had a grant price that is less than the closing market price. These amounts represent the amounts that would have been received by the optionees had these stock options been exercised on those dates. During the fiscal year ended June 30, 2019, the aggregate intrinsic value of stock options exercised was approximately $51,000. No stock options were exercised during the transition period ended June 30, 2018 and the calendar year ended December 31, 2017. Restricted Stock The following is a summary of the restricted stock activity for the fiscal year ended June 30, 2019, the transition period ended June 30, 2018 and the calendar year ended December 31, 2017: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2016 359,400 $ 0.91 Granted 420,000 $ 1.11 Vested (214,200 ) $ 0.92 Canceled (209,783 ) $ 0.96 Unvested at December 31, 2017 355,417 $ 1.11 Granted 264,000 $ 1.25 Vested (216,488 ) $ 1.11 Canceled (138,929 ) $ 1.11 Unvested at June 30, 2018 264,000 $ 1.25 Granted 129,500 $ 1.07 Vested (154,396 ) $ 1.20 Canceled (109,604 ) $ 1.31 Unvested at June 30, 2019 129,500 $ 1.08 The unvested restricted shares as of June 30, 2019 are all As of June 30, 2019, the estimated unrecognized stock-based compensation expense related to these unvested restricted shares subject to the achievement of performance goals was approximately $32,000, all of which is expected to be recognized over a weighted average period of approximately one month.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Jun. 30, 2019
INCOME TAXES [Abstract]
INCOME TAXES	12. INCOME TAXES The Tax Act, which was signed into law in December 2017, among other things lowered the U.S. corporate income tax rate from 35% to that of 21% effective January 1, 2018. Consequently, the Company wrote down its net deferred tax assets as of December 31, 2017 by approximately $519,000 to reflect the estimated impact of the Tax Act. Likewise, the Company recorded a corresponding net adjustment to its valuation allowance related to the re-measurement of certain net deferred tax assets using the lower U.S. corporate income tax. In connection with filing its 2017 U.S. corporate income tax return in June 2018, the Company’s management completed its analysis of the income tax effects of the Tax Act and the effect on its existing corporate alternative minimum tax (“AMT”) deferred tax asset, including the nature, validity, and recoverability of its AMT-related deferred tax credit carryforwards. Upon completing this analysis, management determined that it was able to recognize the underlying tax benefit relating to the realization of the recoverable portion of its AMT-related deferred tax credit carryforwards, net of an expected sequestration reduction, in the amount of approximately $328,000. Accordingly, the Company recorded the expected AMT credit refund as a receivable, net of an anticipated sequestration reduction and such amount was included with other long-term assets in the accompanying Consolidated Balance Sheets as of June 30, 2018. However, on January 14, 2019, the Internal Revenue Service (the “IRS”) announced that refund payments and refund offset transactions due to refundable minimum tax credits associated with the repeal of the corporate AMT as part of the Tax Act would not be subject to sequestration. Accordingly, following the IRS’s announcement that AMT credit refunds would not be subject to the government sequestration amount, in January 2019 the Company recognized the additional available underlying tax benefit in the amount of approximately $23,000 relating to the sequestered portion of its AMT credit. This amount was also included in other long-term assets in the accompanying Consolidated Balance Sheet as of June 30, 2019. In May 2019, the Company received its first installment refund in the amount of approximately $80,000 from the IRS in accordance with the AMT refundability schedule as set forth in the Tax Act. The full refundable amount of the Company’s AMT credit carryover receivable will be refunded to the Company in scheduled installment amounts through the calendar year ending December 31, 2021. The Company accounts for income taxes under the liability method. Under the liability method, deferred income taxes are recognized for the income tax consequences of “temporary differences” by applying enacted statutory income tax rates applicable to future years to differences between the financial statement carrying amounts and the income tax bases of existing assets and liabilities. Income tax net benefit (expense) for the periods presented Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Current: Federal $ 23,149 $ 327,594 $ - State (21,706 ) (9,534 ) (27,609 ) Total current benefit (expense) 1,443 318,060 (27,609 ) Deferred: Federal - - - State - - - Total deferred benefit (expense) - - - Income tax net benefit (expense) $ 1,443 $ 318,060 $ (27,609 ) Significant components of the Company’s deferred income tax assets as of the dates presented are as follows: June 30, December 31, 2019 2018 2017 Reversals and accruals $ 970,516 $ 668,813 $ 686,573 Prepaid expenses (38,552 ) (38,944 ) (28,744 ) Federal NOL carryforwards 4,911,437 5,540,016 5,185,438 State NOL carryforwards 674,522 714,588 681,364 Hong Kong NOL carryforwards 995,566 995,566 995,566 Federal benefit on state taxes under uncertain tax positions 100,703 96,144 94,142 Stock-based compensation 194,524 412,148 422,623 Research tax credit 83,315 235,742 434,637 Alternative minimum tax - 23,149 350,743 Contributions carryforward - 1,923 - Depreciation (157,310 ) (159,100 ) (178,670 ) Accrued rent 88,923 121,124 138,178 Loss on impairment of long-lived assets 32,985 33,157 33,864 Valuation allowance (7,856,629 ) (8,644,326 ) (8,815,714 ) Total deferred income tax assets, net $ - $ - $ - The following are reconciliations between expected income taxes, computed at the applicable statutory federal income tax rate applied to pretax accounting loss, and the income tax net benefit (expense) for the periods presented: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Anticipated income tax (expense) benefit at statutory rate $ (477,545 ) $ 334,716 $ 144,795 State income tax expense, net of federal tax effect (42,334 ) 7,755 (54,083 ) Federal income tax effect of change in tax rate - - (3,729,007 ) Income tax effect of uncertain tax positions 17,494 37,671 (17,946 ) Return to provision adjustments 126 - 2,982 Stock-based compensation (3,929 ) 9,855 (36,233 ) Other changes in deferred income tax assets, net (280,066 ) (243,325 ) (437 ) Decrease in valuation allowance 787,697 171,388 3,662,320 Income tax net benefit (expense) $ 1,443 $ 318,060 $ (27,609 ) The Company’s statutory tax rate as of the fiscal year ended June 30, 2019 is 22.16% and consists of the federal income tax rate of 21% and a blended state income tax rate of 1.16%, net of the federal benefit. The Company’s statutory tax rate as of June 30, 2018 was 22.13% and consisted of the federal income tax rate of 21% and a blended state income tax rate of 1.13%, net of the federal benefit. The Company’s statutory tax rate as of December 31, 2017 was 23.25% and consisted of the federal income tax rate of 21% and a blended state income tax rate of 2.25%, net of the federal benefit. As of each reporting date, management considers new evidence, both positive and negative, that could impact its view with regard to future realization of deferred tax assets. As of June 30, 2019, June 30, 2018 and December 31, 2017, the Company had approximately $102,000, $313,000 and $884,000, respectively, of remaining federal income tax credits that expire between 2020 and 2021 and all of which can be carried forward to offset future income taxes. As of June 30, 2019, June 30, 2018 and December 31, 2017, the Company also had federal tax net operating loss carryforwards of approximately $23.39 million, $26.28 million and $24.59 million, respectively, expiring between 2030 and 2037, which can be used to offset against future federal taxable income; North Carolina tax net operating loss carryforwards of approximately $20.20 million, $20.24 million and $20.22 million, respectively, expiring between 2023 and 2033; and various other state tax net operating loss carryforwards expiring between 2021 and 2034, which can be used to offset against future state taxable income. As of each of June 30, 2019, June 30, 2018 and December 31, 2017, there was approximately $6.03 million in net operating loss carryforwards in Hong Kong. In accordance with the Hong Kong tax code, these amounts can be carried forward indefinitely to offset future taxable income in Hong Kong. The Company’s deferred tax assets in Hong Kong were fully reserved with a valuation allowance of $996,000 as of each of June 30, 2019, June 30, 2018 and December 31, 2017, and had been fully reserved in all prior fiscal periods due to the uncertainty of future taxable income in this jurisdiction to utilize the deferred tax assets. Charles & Colvard (HK) Ltd., the Company’s Hong Kong subsidiary, which was re-activated in December 2017, but had no operating activity during the fiscal year ended June 30, 2019, the transition period ended June 30, 2018 and the calendar year ended December 31, 2017, previously ceased operations during 2008 and became a dormant entity during 2009. If the Company uses any portion of its deferred tax assets in future periods, the valuation allowance would need to be reversed and may impact the Company’s future operating results. Uncertain Tax Positions The gross liability for income taxes associated with uncertain tax positions at June 30, 2019, June 30, 2018 and December 31, 2017, was approximately $512,000, $525,000 and $560,000, respectively. These amounts are shown net of approximately $19,000, $54,000 and $98,000, respectively, recorded as a direct reduction to the associated deferred tax asset. The gross liability, if recognized, would favorably affect the Company’s effective tax rate. The Company’s policy for recording interest and penalties associated with tax audits is to record such items as a component of the provision for income taxes. The Company accrued approximately $22,000, $10,000 and $28,000 of interest and penalties associated with uncertain tax positions for the fiscal year ended June 30, 2019, the transition period ended June 30, 2018 and the calendar year ended December 31, 2017, respectively. Including the interest and penalties recorded for uncertain tax positions, there is a total of approximately $225,000, $203,000 and $193,000 of interest and penalties included in the accrued income tax liability for uncertain tax positions as of June 30, 2019, June 30, 2018 and December 31, 2017, respectively. To the extent interest and penalties are not ultimately incurred with respect to uncertain tax positions, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision. In all significant federal and state jurisdictions where it is required to file income tax returns, the Company has analyzed filing positions for all tax years in which the statute of limitations is open. The only periods subject to examination by the major tax jurisdictions where the Company does business are the tax years ended December 31, 2014 through June 30, 2018. The Company does not believe that the outcome of any examination will have a material impact on its consolidated financial statements and does not expect settlement on any uncertain tax positions within the next 12 months. Beginning with the transition period ended June 30, 2018, the Company’s tax year conforms with its fiscal accounting period year ending on June 30 of each year. The following table summarizes the activity related to the Company’s gross liability for uncertain tax positions for the period from December 31, 2016 through June 30, 2019: Balance at December 31, 2016 $ 532,764 Increases related to prior calendar year tax positions 27,609 Balance at December 31, 2017 560,373 Decreases related to prior calendar year tax positions (35,670 ) Balance at June 30, 2018 524,703 Decreases related to prior transition period tax positions (12,936 ) Balance at June 30, 2019 $ 511,767

MAJOR CUSTOMERS AND CONCENTRATI

MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK	12 Months Ended
	Jun. 30, 2019
MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK [Abstract]
MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK	13. MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK At times, a portion of the Company’s accounts receivable will be due from customers that have individual balances of 10% or more of the Company’s total gross accounts receivable. The following is a summary of customers that represent greater than or equal to 10% of total gross accounts receivable as of the dates presented: June 30, December 31, 2019 2018 2017 Customer A 25 % 23 % * % Customer B 15 % ** % ** % Customer C 13 % 10 % 18 % Customer D *** % *** % 12 % * Customer A did not have individual balances that represented 10% or more of total gross accounts receivable as of December 31, 2017. ** Customer B did not have individual balances that represented 10% or more of total gross accounts receivable as of June 30, 2018 and December 31, 2017. *** Customer D did not have individual balances that represented 10% or more of total gross accounts receivable as of June 30, 2019 and 2018. A significant portion of sales is derived from certain customer relationships. The following is a summary of customers that represent greater than or equal to 10% of total net sales for the periods presented: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Customer A 14 % 12 % 21 % Customer C 10 % 12 % * % * Customer C did not have net sales that represented 10% or more of total net sales for the calendar year ended December 31, 2017. The Company records its sales returns allowance at the corporate level based on several factors including historical sales return activity and specific allowances for known customer returns.

EMPLOYEE BENEFIT PLAN

EMPLOYEE BENEFIT PLAN	12 Months Ended
	Jun. 30, 2019
EMPLOYEE BENEFIT PLAN [Abstract]
EMPLOYEE BENEFIT PLAN	14. EMPLOYEE BENEFIT PLAN All full-time employees who meet certain length of service requirements are eligible to participate in and receive benefits from the Company’s 401(k) Plan. This plan provides for matching contributions by the Company in such amounts as the Board of Directors may annually determine, as well as a 401(k) option under which eligible participants may defer a portion of their salaries. The Company contributed a total of $67,000, $44,000 and $64,000 to this employee benefit plan during the fiscal year ended June 30, 2019, the transition period ended June 30, 2018 and the calendar year ended December 31, 2017, respectively.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	12 Months Ended
	Jun. 30, 2019
SUBSEQUENT EVENT [Abstract]
SUBSEQUENT EVENT	15. SUBSEQUENT EVENT On July 3, 2019, the Company A more detailed description of the Company’s included in Note 11, “Shareholders’ Equity and Stock-Based Compensation”.

BASIS OF PRESENTATION AND SIG_2

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Jun. 30, 2019
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation – All intercompany accounts have been eliminated.
Change in Fiscal Year-End	Change in Fiscal Year-End –
Use of Estimates	Use of Estimates – T “ ”
Change in Accounting Policy	Change in Accounting Policy – Revenue Recognition The Company applied this new accounting standard using the modified retrospective approach. Based on the Company’s analysis, the timing and measurement of revenues under the new revenue recognition guidance is consistent with the Company’s prior policies. Accordingly, no adjustment was required to the Company’s opening balance of equity as of January 1, 2018. Except for required disclosures of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, the changes resulting from the adoption of the new accounting standard did not have a material effect on the Company’s consolidated financial statements. Comparative prior period information for the calendar year ended December 31, 2017 has not been adjusted and continues to be reported under the accounting guidance in effect prior to the change of accounting.
Cash and Cash Equivalents	Cash and Cash Equivalents – Restricted Cash
Restricted Cash	Restricted Cash – White Oak Commercial Finance, LLC (“White Oak”) The Company has full access to its cash balances without restriction following the period of time such cash is held by White Oak. For additional information regarding the Company’s asset-based revolving credit facility, see Note 10, “Line of Credit.” The reconciliation of cash, cash equivalents, and restricted cash, as presented on the Consolidated Statements of Cash Flows, consists of the following as of the dates presented: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Cash and cash equivalents $ 12,465,483 $ 3,393,186 $ 4,594,007 Restricted cash 541,062 - - Total cash, cash equivalents and restricted cash $ 13,006,545 $ 3,393,186 $ 4,594,007
Concentration of Credit Risk	Concentration of Credit Risk – Trade receivables potentially subject the Company to credit risk. Payment terms on trade receivables for the Company’s Traditional segment customers are generally between 30 and 90 days, . The Company extends credit to its customers based upon a number of factors, including an evaluation of the customer’s financial condition and credit history that is verified through trade association reference services, the customer’s payment history with the Company, the customer’s reputation in the trade, and/or an evaluation of the Company’s opportunity to introduce its moissanite jewels or finished jewelry featuring moissanite to new or expanded markets. See Note 13, “Major Customers and Concentration of Credit Risk”, for further discussion of credit risk within trade accounts receivable.
Accounts Receivable Reserves	Accounts Receivable Reserves – The following are reconciliations of the allowance for sales returns balances as of the periods presented: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Balance, beginning of period $ 648,000 $ 537,000 $ 415,000 Additions charged to operations 4,533,077 2,462,049 3,878,736 Sales returned (4,435,077 ) (2,351,049 ) (3,756,736 ) Balance, end of period $ 746,000 $ 648,000 $ 537,000 The second reserve is an allowance for doubtful accounts for estimated losses resulting from the failure of the Company’s customers to make required payments. This allowance reduces trade accounts receivable to an amount expected to be collected. The Company generally uses an internal collection effort, which may include its sales personnel as it deems appropriate. After all internal collection efforts have been exhausted, the Company generally writes off the account receivable. Any accounts with significant balances are reviewed separately to determine an appropriate allowance based on the facts and circumstances of the specific account. on these criteria, management determined that allowances for doubtful accounts receivable of $249,000, $233,000 and $254,000 at June 30, 2019, June 30, 2018 and December 31, 2017 The following are reconciliations of the allowance for doubtful accounts balances as of the periods presented: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Balance, beginning of period $ 233,000 $ 254,000 $ 226,000 Additions (reductions) charged to operations 27,056 (4,511 ) 28,000 Write-offs, net of recoveries (11,056 ) (16,489 ) - Balance, end of period $ 249,000 $ 233,000 $ 254,000 Although the Company believes that its reserves are adequate, if the financial condition of its customers deteriorates, resulting in an impairment of their ability to make payments, or if it underestimates the allowances required, additional allowances may be necessary,
Inventories	Inventories - Inventory costs include direct material and labor, inbound freight, purchasing and receiving costs, inspection costs, and warehousing costs. Each accounting period, the Company evaluates the valuation and classification of inventories including the need for potential adjustments to inventory-related reserves, which also include significant estimates by management. The Company’s inventory-related valuation allowances are recorded in the aggregate rather than an individual item approach for each obsolescence, rework, and shrinkage valuation allowance.
Property and Equipment	Property and Equipment – Machinery and equipment 5 to 12 years Computer hardware 3 to 5 years Computer software 3 years Furniture and fixtures 5 to 10 years Leasehold improvements Shorter of the estimated useful life or the lease term
Intangible Assets	Intangible Assets –
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets – whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of the asset to future net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment is measured as the amount by which the carrying amount exceeds the fair value and is recognized as an operating expense in the period in which the determination is made. Assets to be disposed are reported at the lower of the carrying amount or fair value less costs to sell once the held-for-sale criteria are met. As of June 30, 2019, the Company did not identify any indicators of long-lived asset impairment. In addition to the recoverability assessment, the Company routinely reviews the remaining estimated useful lives of its long-lived assets. Any reduction in the useful-life assumption will result in increased depreciation and amortization expense in the period when such determination is made, as well as in subsequent periods.
Revenue Recognition	Revenue Recognition – Revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. To achieve this principle, the Company performs the following five steps: (i) identification of a contract with a customer; (ii) identification of any separate performance obligations; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract; and (v) recognition of revenue when the Company has satisfied the underlying performance obligations. The Company recognizes substantially all of its revenue at a point in time when control of the Company’s goods has passed to the customer, which typically occurs upon shipment, with the exception of consigned goods. The Company considers its sole performance obligation related to the shipment of goods satisfied at the time this control is transferred. Customer payment terms for these shipments typically range between 30- and 90-days. The Company has elected to treat shipping and handling performed after control has transferred to customers as a fulfillment activity, and additionally, has elected the practical expedient to report sales taxes on a net basis. The Company records shipping and handling expense related to product sales as cost of sales. The Company has a variable consideration element related to most of its contracts in the form of product return rights. At the time revenue is recognized, an allowance for estimated returns is established and any change in the allowance for returns is charged against net sales in the current period. For the Company’s Traditional segment and Online Channels segment customers (excluding those of charlesandcolvard.com), the returns policy generally allows for the return of jewels and finished jewelry with a valid reason for credit within 30 days of shipment. The Company’s charlesandcolvard.com customers can return purchases for any reason within 60 days of such purchase in accordance with the Company’s returns policy as disclosed on the charlesandcolvard.com website. Periodically, the Company ships loose jewel goods and finished goods to Traditional segment customers on consignment terms. Under these consignment terms, the customer assumes the risk of loss and has an absolute right of return for a specified period that typically ranges from six months to one year. The Company’s Online Channels segment and Traditional segment customers are generally required to make payments on consignment shipments within 60 days upon the customer informing the Company that it will keep the inventory. Accordingly, the Company does not recognize revenue on these consignment transactions until the earlier of (i) the customer informing the Company that it will keep the inventory; (ii) the expiration of the right of return period; or (iii) the customer informing the Company that the inventory has been sold. Certain Traditional segment finished jewelry customers have migrated from consignment arrangements whereby the terms were strictly consignment-only to that of a blended program whereby the terms comprise both consignment and sale of asset arrangements. In March 2019, the Company entered into a nonmonetary transaction with a Raleigh, North Carolina, based professional sports team. In accordance with the terms of the agreement, in exchange for a specific quantity of finished jewelry items the Company received certain sponsorship and advertising benefits, which based on the sports team’s current sponsorship and advertising market rate card prices, are valued at approximately $117,000. The Company’s finished jewelry in connection with this transaction, the cost of which is based on the Company’s stated inventory average cost accounting method, was designed and produced to meet discrete specifications and branding requirements of the professional sports team. In accordance with the Company’s revenue recognition policy, it recognized the full amount of the sponsorship and advertising benefits as gross revenue upon delivery of the finished jewelry in April 2019 and the deferred cost of the advertising is recorded and classified within prepaid expenses and other assets in the Company’s Consolidated Balance Sheet and is being amortized and recognized in sales and marketing expenses over the professional sports team’s current competitive season that runs from April through September 2019. The Company presents disaggregated net sales by its Online Channels segment and its Traditional segment for both finished jewelry and loose jewels product lines. The Company also presents disaggregated net sales by geographic area between the United States and international locations. For financial reporting purposes, disaggregated net sales amounts are presented in Note 3, “Segment Information and Geographic Data.” Returns Asset and Refund Liabilities In connection with the Company’s adoption of the he Company established a returns asset account and a refund liabilities account to record the effects of its estimated product returns and sales returns allowance. The Company’s returns asset and refund liabilities are updated at the end of each financial reporting period and the effect of such changes are accounted for in the period in which such changes occur. The Company estimates anticipated product returns in the form of a refund liability based on historical return percentages and current period sales levels. The Company also accrues a related returns asset for goods expected to be returned in salable condition, less any expected costs to recover such goods, including return shipping costs that the Company may incur. As of June 30, 2019, June 30, 2018 and December 31, 2017, the Company’s refund liabilities balances were $746,000, $648,000 and $537,000, respectively, and are included as allowances for sales returns within accounts receivable, net, in the accompanying Consolidated Balance Sheets. As of June 30, 2019, June 30, 2018 and December 31, 2017, the Company’s returns asset balances were $279,000, $250,000 and $0, respectively, and are included within prepaid expenses and other assets in the accompanying Consolidated Balance Sheets. Prior to the adoption of the new
Cost of Goods Sold	Cost of Goods Sold –
Advertising Costs	Advertising Costs – The Company also offers a cooperative advertising program to certain of its distributor and retail partners that reimburses, via a credit towards future purchases, a portion of their marketing costs based on the customers’ net purchases from the Company and is subject to the customer providing documentation of all advertising performed that includes the Company’s products. For the fiscal year ended June 30, 2019, the transition period ended June 30, 2018 and the calendar year ended December 31, 2017, these approximate amounts were $381,000, $154,000 and $210,000, respectively, and are included as a component of sales and marketing expenses. Advertising expenses, inclusive of the cooperative advertising program, for the fiscal year ended June 30, 2019, the transition period ended June 30, 2018 and the calendar year ended December 31, 2017, were approximately $2.82 million, $1.09 million and $1.94 million, respectively.
Sales and Marketing	Sales and Marketing – charlesandcolvard.com, LLC, wholly owned operating subsidiary.
General and Administrative	General and Administrative –
Research and Development	Research and Development –
Stock-Based Compensation	Stock-Based Compensation – The Company recognizes compensation expense for stock-based awards based on estimated fair values on the date of grant. Fair value of stock options using the Black-Scholes-Merton option pricing model is estimated on the date of grant utilizing certain assumptions for dividend yield, expected volatility, risk-free interest rate, and expected lives of the awards, as follows: Dividend Yield. Expected Volatility. Volatility is a measure of the amount by which a financial variable such as share price has fluctuated (historical volatility) or is expected to fluctuate (expected volatility) during a period. ; Risk-Free Interest Rate. Expected Lives. The assumptions used in calculating the fair value of share-based payment awards represent management’s best estimates, but these estimates involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and the Company uses different assumptions, the Company’s stock-based compensation expense could be materially different in the future. In addition, the Company is required to estimate the expected forfeiture rates of stock-based awards and only recognize expense for those shares expected to vest. In estimating the Company’s forfeiture rates, the Company analyzed its historical forfeiture rates, the remaining lives of unvested stock-based awards, and the number of vested awards as a percentage of total awards outstanding. If the Company’s actual forfeiture rates are materially different from its estimates, or if the Company re-evaluates the forfeiture rates in the future, the stock-based compensation expense could be significantly different from what the Company has recorded in the current period.
Income Taxes	Income Taxes – In light of the Tax Cuts and Jobs Act (the “Tax Act”) enacted in December 2017, the Company provisionally recorded its U.S. deferred taxes as of the calendar year ended December 31, 2017, based on the federal corporate income tax rate of 21%. In June 2018, the Company filed its 2017 , and in conjunction therewith, finalized its accounting policy with respect to accounting for its deferred income taxes as of and for the transition period ended June 30, 2018.
Net Income (Loss) per Common Share	Net Income (Loss) per Common Share – The following table reconciles the differences between the basic and diluted net income (loss) per share presentations: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Numerator: Net income (loss) $ 2,275,467 $ (1,275,826 ) $ (453,477 ) Denominator: Weighted average number of common shares outstanding: Basic 21,860,699 21,406,487 21,193,793 Effect of dilutive securities 250,524 - - Diluted 22,111,223 21,406,487 21,193,793 Net income (loss) per common share: Basic $ 0.10 $ (0.06 ) $ (0.02 ) Diluted 0.10 (0.06 ) (0.02 ) For the fiscal year ended June 30, 2019, the six-month period ended June 30, 2018, and the calendar year ended December 31, 2017, stock options to purchase approximately 2.33 million, 2.39 million and 2.38 million shares, respectively, were excluded from the computation of diluted net income (loss) per common share because the exercise price of the stock options was greater than the average market price of the common shares or the effect of inclusion of such amounts would be anti-dilutive to net income (loss) per common share. For the fiscal year ended June 30, 2019, no restricted shares that were issued but not yet vested were excluded from the computation of diluted net income per common share. For the transition period ended June 30, 2018 and the calendar year ended December 31, 2017, approximately 264,000 and 355,000, respectively, of restricted shares that were issued but not yet vested were excluded from the computation of diluted net loss per common share because the effects of the inclusion of such number of shares would be anti-dilutive to net income or loss per common share. Additionally, the underwriters’ over-allotment option to purchase 630,500 shares is excluded from the computation of diluted net income per share as of June 30, 2019, because the effects of inclusion would be anti-dilutive to net income per common share.
Recently Adopted/Issued Accounting Pronouncements	Recently Adopted/Issued Accounting Pronouncements – which requires lessees to recognize a right-of-use (“ROU”) asset and lease liability on the balance sheet for most lease arrangements and expands disclosures about leasing arrangements for both lessees and lessors, among other items. The new standard is effective for fiscal years beginning after December 15, 2018, which makes the new standard effective for the Company on July 1, 2019. The Company may apply the transition provisions of the new guidance, as amended, either at the beginning of the earliest period presented in the Company’s Form 10-K for the fiscal year ending June 30, 2020, which would be July 1, 2018, or on the effective date of adoption, which would be July 1, 2019. Among other requirements, the transition provisions require the lessee to recognize an ROU asset and liability for most existing lease arrangements on the date the transition provisions are applied. The Company has elected to apply the transition provisions of this new standard on July 1, 2019. Therefore, periods prior to the effective date of adoption will continue to be reported consistent with All of the Company’s existing lease arrangements are classified as operating leases, which will continue to be classified as operating under the new guidance. Upon adoption of the new standard on July 1, 2019, the Company will record an ROU asset and lease liability in amounts that will be material on its Consolidated Balance Sheet for the Company’s lease arrangements. Management does not anticipate that adoption of this new guidance will have a significant impact on the Company’s net earnings or cash flows. In June 2018, the FASB issued guidance that is intended to reduce cost and complexity and to improve financial reporting for share-based payments to nonemployees. This new guidance is effective for fiscal years beginning after December 15, 2018. The Company will adopt the new guidance as of July 1, 2019, as required, and the impact of the adoption is not expected to be material to the Company’s financial statements.

BASIS OF PRESENTATION AND SIG_3

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Jun. 30, 2019
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Cash, Cash Equivalents and Restricted Cash	The reconciliation of cash, cash equivalents, and restricted cash, as presented on the Consolidated Statements of Cash Flows, consists of the following as of the dates presented: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Cash and cash equivalents $ 12,465,483 $ 3,393,186 $ 4,594,007 Restricted cash 541,062 - - Total cash, cash equivalents and restricted cash $ 13,006,545 $ 3,393,186 $ 4,594,007
Reconciliation of Allowance for Sales Returns	The following are reconciliations of the allowance for sales returns balances as of the periods presented: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Balance, beginning of period $ 648,000 $ 537,000 $ 415,000 Additions charged to operations 4,533,077 2,462,049 3,878,736 Sales returned (4,435,077 ) (2,351,049 ) (3,756,736 ) Balance, end of period $ 746,000 $ 648,000 $ 537,000
Reconciliation of Allowance for Doubtful Accounts	The following are reconciliations of the allowance for doubtful accounts balances as of the periods presented: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Balance, beginning of period $ 233,000 $ 254,000 $ 226,000 Additions (reductions) charged to operations 27,056 (4,511 ) 28,000 Write-offs, net of recoveries (11,056 ) (16,489 ) - Balance, end of period $ 249,000 $ 233,000 $ 254,000
Estimated Useful Life of Property, Plant and Equipment	Property and equipment are stated at cost and are depreciated over their estimated useful lives using the straight-line method as follows: Machinery and equipment 5 to 12 years Computer hardware 3 to 5 years Computer software 3 years Furniture and fixtures 5 to 10 years Leasehold improvements Shorter of the estimated useful life or the lease term
Reconciliation of Basic and Diluted Net Income (loss) Per Share	The following table reconciles the differences between the basic and diluted net income (loss) per share presentations: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Numerator: Net income (loss) $ 2,275,467 $ (1,275,826 ) $ (453,477 ) Denominator: Weighted average number of common shares outstanding: Basic 21,860,699 21,406,487 21,193,793 Effect of dilutive securities 250,524 - - Diluted 22,111,223 21,406,487 21,193,793 Net income (loss) per common share: Basic $ 0.10 $ (0.06 ) $ (0.02 ) Diluted 0.10 (0.06 ) (0.02 )

SEGMENT INFORMATION AND GEOGR_2

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)	12 Months Ended
	Jun. 30, 2019
SEGMENT INFORMATION AND GEOGRAPHIC DATA [Abstract]
Financial Information by Reportable Segment	Summary financial information by reportable segment for the periods presented is as follows: Year Ended June 30, 2019 Online Channels Traditional Total Net sales Finished jewelry $ 12,641,687 $ 2,815,656 $ 15,457,343 Loose jewels 3,697,069 13,089,697 16,786,766 Total $ 16,338,756 $ 15,905,353 $ 32,244,109 Product line cost of goods sold Finished jewelry $ 5,220,551 $ 1,638,561 $ 6,859,112 Loose jewels 1,583,404 6,659,426 8,242,830 Total $ 6,803,955 $ 8,297,987 $ 15,101,942 Product line gross profit Finished jewelry $ 7,421,136 $ 1,177,095 $ 8,598,231 Loose jewels 2,113,665 6,430,271 8,543,936 Total $ 9,534,801 $ 7,607,366 $ 17,142,167 Operating income $ 1,643,552 $ 622,005 $ 2,265,557 Depreciation and amortization $ 172,819 $ 308,500 $ 481,319 Capital expenditures $ 69,975 $ 291,465 $ 361,440 Six Months Ended June 30, 2018 Online Channels Traditional Total Net sales Finished jewelry $ 4,490,984 $ 1,672,066 $ 6,163,050 Loose jewels 1,878,388 5,121,660 6,999,998 Total $ 6,369,322 $ 6,793,726 $ 13,163,048 Product line cost of goods sold Finished jewelry $ 1,972,862 $ 1,462,371 $ 3,435,233 Loose jewels 951,664 2,688,560 3,640,224 Total $ 2,924,526 $ 4,150,931 $ 7,075,457 Product line gross profit Finished jewelry $ 2,518,122 $ 209,695 $ 2,727,817 Loose jewels 926,674 2,433,100 3,359,774 Total $ 3,444,796 $ 2,642,795 $ 6,087,591 Operating loss $ (243,832 ) $ (1,349,756 ) $ (1,593,588 ) Depreciation and amortization $ 59,409 $ 170,584 $ 229,993 Capital expenditures $ 29,689 $ 100,960 $ 130,649 Year Ended December 31, 2017 Online Channels Traditional Total Net sales Finished jewelry $ 7,936,773 $ 2,515,443 $ 10,452,216 Loose jewels 3,149,972 13,430,776 16,580,748 Total $ 11,086,745 $ 15,946,219 $ 27,032,964 Product line cost of goods sold Finished jewelry $ 3,615,815 $ 1,610,845 $ 5,226,660 Loose jewels 1,526,358 6,998,485 8,524,843 Total $ 5,142,173 $ 8,609,330 $ 13,751,503 Product line gross profit Finished jewelry $ 4,320,958 $ 904,598 $ 5,225,556 Loose jewels 1,623,614 6,432,291 8,055,905 Total $ 5,944,572 $ 7,336,889 $ 13,281,461 Operating income (loss) $ 228,253 $ (836,797 ) $ (608,544 ) Depreciation and amortization $ 121,710 $ 300,308 $ 422,018 Capital expenditures $ 147,446 $ 123,944 $ 271,390
Reconciliation of Product Line Cost of Goods Sold to Cost of Goods Sold as Reported in Consolidated Financial Statements	The reconciliations of the Company’s product line cost of goods sold to cost of goods sold, as reported in the consolidated financial statements for the periods presented, are as follows: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Product line cost of goods sold $ 15,101,942 $ 7,075,457 $ 13,751,503 Non-capitalized manufacturing and production control expenses 1,442,446 805,400 1,352,311 Freight out 578,772 272,790 417,074 Inventory valuation allowances 393,000 - 598,000 Other inventory adjustments (163,993 ) 144,639 (648,271 ) Cost of goods sold $ 17,352,167 $ 8,298,286 $ 15,470,617
Net Sales by Geographic Area	The following presents net sales data by geographic area for the periods presented: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Net sales: United States $ 27,979,835 $ 12,121,003 $ 25,176,220 International 4,264,274 1,042,045 1,856,744 Total $ 32,244,109 $ 13,163,048 $ 27,032,964

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Jun. 30, 2019
INVENTORIES [Abstract]
Inventory, Net of Reserves	The Company’s total inventories, net of reserves, are as follows as of the dates presented: June 30, December 31, 2019 2018 2017 Raw materials $ 4,450,478 $ 5,083,436 $ 4,853,049 Work-in-process 10,871,823 10,659,786 9,219,383 Finished goods 18,557,224 17,483,773 17,896,992 Finished goods on consignment 2,086,084 523,971 1,093,752 Supplies inventory 129,111 45,572 75,441 Less: inventory reserves (2,361,000 ) (1,968,000 ) (2,165,000 ) Total classified inventories $ 33,733,720 $ 31,828,538 $ 30,973,617 Short-term portion $ 11,909,792 $ 10,979,891 $ 11,208,658 Long-term portion 21,823,928 20,848,647 19,764,959 Total short- and long-term inventories $ 33,733,720 $ 31,828,538 $ 30,973,617
Inventories by Product Line Maintained in its Wholesale Distribution Segment	The Company’s total inventories, net of reserves, consisted of the following as of the dates presented: June 30, December 31, 2019 2018 2017 Finished jewelry: Raw materials $ 643,797 $ 595,649 $ 564,689 Work-in-process 487,680 1,196,268 890,664 Finished goods 6,332,533 5,517,951 6,304,747 Finished goods on consignment 1,867,549 476,648 1,007,471 Total finished jewelry 9,331,559 7,786,516 8,767,571 Loose jewels: Raw materials 3,806,681 4,487,787 4,288,360 Work-in-process 10,384,143 9,463,518 8,328,719 Finished goods 9,878,691 10,015,822 9,487,245 Finished goods on consignment 203,535 29,323 26,281 Total loose jewels 24,273,050 23,996,450 22,130,605 Total supplies inventory 129,111 45,572 75,441 Total inventory $ 33,733,720 $ 31,828,538 $ 30,973,617

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Jun. 30, 2019
PROPERTY AND EQUIPMENT [Abstract]
Property and Equipment	Property and equipment consists of the following as of the dates presented: June 30, December 31, 2019 2018 2017 Computer software $ 1,512,533 $ 1,253,894 $ 1,206,465 Machinery and equipment 1,100,629 1,048,288 1,026,736 Computer hardware 1,064,302 1,026,987 1,009,008 Leasehold improvements 1,158,218 1,151,659 1,126,553 Furniture and fixtures 343,808 337,210 318,627 Total 5,179,490 4,818,038 4,687,389 Less: accumulated depreciation (4,153,392 ) (3,673,840 ) (3,445,189 ) Property and equipment, net $ 1,026,098 $ 1,144,198 $ 1,242,200

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Jun. 30, 2019
INTANGIBLE ASSETS [Abstract]
Intangible Assets	Intangible assets consist of the following as of the dates presented: June 30, December 31, Weighted Average Remaining Amortization Period 2019 2018 2017 (in Years) Patents $ 1,007,497 $ 969,632 $ 958,604 15.0 Trademarks 100,331 73,877 57,325 9.5 License rights 6,718 6,718 6,718 - Total 1,114,546 1,050,227 1,022,647 Less accumulated amortization (1,017,173 ) (1,015,394 ) (1,014,050 ) Intangible assets, net $ 97,373 $ 34,833 $ 8,597

ACCRUED EXPENSES AND OTHER LI_2

ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)	12 Months Ended
	Jun. 30, 2019
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract]
Accrued Expenses and Other Liabilities	Total accrued expenses and other liabilities consist of the following as of the dates presented: June 30, December 31, 2019 2018 2017 Accrued compensation and related benefits $ 760,324 $ 359,077 $ 652,177 Accrued cooperative advertising 73,033 60,784 134,018 Deferred rent 156,306 139,558 131,389 Accrued sales tax 286,864 17,149 20,844 Other 49,081 42,377 42,372 Accrued expenses and other liabilities $ 1,325,608 $ 618,945 $ 980,800

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Jun. 30, 2019
COMMITMENTS AND CONTINGENCIES [Abstract]
Future Minimum Payments Under Operating Lease	As of June 30, 2019, the Company’s future minimum payments under the operating leases were as follows: 2020 $ 625,788 2021 642,997 2022 219,723 Total $ 1,488,508

SHAREHOLDERS' EQUITY AND STOC_2

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Jun. 30, 2019
SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION [Abstract]
Stock Based Compensation	The following table summarizes the components of the Company’s stock-based compensation included in net income (loss) for the periods presented: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Employee stock options $ 235,984 $ 142,096 $ 336,534 Restricted stock awards 266,821 93,537 106,948 Totals $ 502,805 $ 235,633 $ 443,482
Stock Option Activity	The following is a summary of the stock option activity for the fiscal year ended June 30, 2019, the transition period ended June 30, 2018 and the calendar year ended December 31, 2017: Shares Weighted Average Exercise Price Outstanding at December 31, 2016 2,134,898 $ 1.99 Granted 836,369 $ 0.94 Forfeited (103,000 ) $ 1.22 Expired (491,002 ) $ 2.95 Outstanding at December 31, 2017 2,377,265 $ 1.46 Granted 216,157 $ 1.27 Forfeited (173,750 ) $ 1.05 Expired (31,503 ) $ 2.17 Outstanding at June 30, 2018 2,388,169 $ 1.46 Granted 285,025 $ 1.00 Exercised (52,500 ) 1.21 Forfeited (30,000 ) $ 1.20 Expired (67,056 ) $ 1.71 Outstanding at June 30, 2019 2,523,638 $ 1.41
Weighted Average Assumptions for Stock Options Granted	The fair value of each stock option is estimated on the date of grant using the Black-Scholes-Merton option pricing model with the following weighted average assumptions for stock options granted during the periods presented: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Dividend yield 0.0 % 0.0 % 0.0 % Expected volatility 61.0 % 62.8 % 63.4 % Risk-free interest rate 3.09 % 2.76 % 1.90 % Expected lives (years) 5.5 5.4 5.5
Information About Stock Options Outstanding	The following tables summarize information in connection with stock options outstanding at June 30, 2019: Options Outstanding Options Exercisable Options Vested or Expected to Vest Balance as of 6/30/2019 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 6/30/2019 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 6/30/2019 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price 2,523,638 6.95 $ 1.41 2,053,613 6.51 $ 1.49 2,460,292 6.91 $ 1.42
Restricted Stock Activity	The following is a summary of the restricted stock activity for the fiscal year ended June 30, 2019, the transition period ended June 30, 2018 and the calendar year ended December 31, 2017: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2016 359,400 $ 0.91 Granted 420,000 $ 1.11 Vested (214,200 ) $ 0.92 Canceled (209,783 ) $ 0.96 Unvested at December 31, 2017 355,417 $ 1.11 Granted 264,000 $ 1.25 Vested (216,488 ) $ 1.11 Canceled (138,929 ) $ 1.11 Unvested at June 30, 2018 264,000 $ 1.25 Granted 129,500 $ 1.07 Vested (154,396 ) $ 1.20 Canceled (109,604 ) $ 1.31 Unvested at June 30, 2019 129,500 $ 1.08

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Jun. 30, 2019
INCOME TAXES [Abstract]
Income Tax Net Benefit (Expense)	Income tax net benefit (expense) for the periods presented Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Current: Federal $ 23,149 $ 327,594 $ - State (21,706 ) (9,534 ) (27,609 ) Total current benefit (expense) 1,443 318,060 (27,609 ) Deferred: Federal - - - State - - - Total deferred benefit (expense) - - - Income tax net benefit (expense) $ 1,443 $ 318,060 $ (27,609 )
Deferred Income Tax Assets	Significant components of the Company’s deferred income tax assets as of the dates presented are as follows: June 30, December 31, 2019 2018 2017 Reversals and accruals $ 970,516 $ 668,813 $ 686,573 Prepaid expenses (38,552 ) (38,944 ) (28,744 ) Federal NOL carryforwards 4,911,437 5,540,016 5,185,438 State NOL carryforwards 674,522 714,588 681,364 Hong Kong NOL carryforwards 995,566 995,566 995,566 Federal benefit on state taxes under uncertain tax positions 100,703 96,144 94,142 Stock-based compensation 194,524 412,148 422,623 Research tax credit 83,315 235,742 434,637 Alternative minimum tax - 23,149 350,743 Contributions carryforward - 1,923 - Depreciation (157,310 ) (159,100 ) (178,670 ) Accrued rent 88,923 121,124 138,178 Loss on impairment of long-lived assets 32,985 33,157 33,864 Valuation allowance (7,856,629 ) (8,644,326 ) (8,815,714 ) Total deferred income tax assets, net $ - $ - $ -
Effective Income Tax Rate Reconciliation	The following are reconciliations between expected income taxes, computed at the applicable statutory federal income tax rate applied to pretax accounting loss, and the income tax net benefit (expense) for the periods presented: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Anticipated income tax (expense) benefit at statutory rate $ (477,545 ) $ 334,716 $ 144,795 State income tax expense, net of federal tax effect (42,334 ) 7,755 (54,083 ) Federal income tax effect of change in tax rate - - (3,729,007 ) Income tax effect of uncertain tax positions 17,494 37,671 (17,946 ) Return to provision adjustments 126 - 2,982 Stock-based compensation (3,929 ) 9,855 (36,233 ) Other changes in deferred income tax assets, net (280,066 ) (243,325 ) (437 ) Decrease in valuation allowance 787,697 171,388 3,662,320 Income tax net benefit (expense) $ 1,443 $ 318,060 $ (27,609 )
Gross Liability for Uncertain Tax Positions	The following table summarizes the activity related to the Company’s gross liability for uncertain tax positions for the period from December 31, 2016 through June 30, 2019: Balance at December 31, 2016 $ 532,764 Increases related to prior calendar year tax positions 27,609 Balance at December 31, 2017 560,373 Decreases related to prior calendar year tax positions (35,670 ) Balance at June 30, 2018 524,703 Decreases related to prior transition period tax positions (12,936 ) Balance at June 30, 2019 $ 511,767

MAJOR CUSTOMERS AND CONCENTRA_2

MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK (Tables)	12 Months Ended
	Jun. 30, 2019
MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK [Abstract]
Customers That Represent Greater Than or Equal to 10% of Total Net Sales and Receivables	The following is a summary of customers that represent greater than or equal to 10% of total gross accounts receivable as of the dates presented: June 30, December 31, 2019 2018 2017 Customer A 25 % 23 % * % Customer B 15 % ** % ** % Customer C 13 % 10 % 18 % Customer D *** % *** % 12 % * Customer A did not have individual balances that represented 10% or more of total gross accounts receivable as of December 31, 2017. ** Customer B did not have individual balances that represented 10% or more of total gross accounts receivable as of June 30, 2018 and December 31, 2017. *** Customer D did not have individual balances that represented 10% or more of total gross accounts receivable as of June 30, 2019 and 2018. A significant portion of sales is derived from certain customer relationships. The following is a summary of customers that represent greater than or equal to 10% of total net sales for the periods presented: Year Ended June 30, 2019 Six Months Ended June 30, 2018 Year Ended December 31, 2017 Customer A 14 % 12 % 21 % Customer C 10 % 12 % * % * Customer C did not have net sales that represented 10% or more of total net sales for the calendar year ended December 31, 2017.

BASIS OF PRESENTATION AND SIG_4

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES, Restricted Cash (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash, Cash equivalents and Restricted Cash [Abstract]
Cash and cash equivalents	$ 12,465,483	$ 3,393,186	$ 4,594,007
Restricted cash	541,062	0	0
Total cash, cash equivalents, and restricted cash	$ 13,006,545	$ 3,393,186	$ 4,594,007	$ 7,427,273

BASIS OF PRESENTATION AND SIG_5

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES, Concentration of Credit Risk (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2017
Concentration Credit Risk [Abstract]
Non-interest bearing amounts on deposit in excess of FDIC insurable limits	$ 2,120	$ 3,110	$ 4,320
Interest bearing amounts on deposit in excess of FDIC insurable limits	$ 10,010	$ 0	$ 0
Minimum [Member] | Customer Concentration Risk [Member] | Trade Accounts Receivable [Member]
Concentration Credit Risk [Abstract]
Customer payment term for trade receivables	30 days
Maximum [Member] | Customer Concentration Risk [Member] | Trade Accounts Receivable [Member]
Concentration Credit Risk [Abstract]
Customer payment term for trade receivables	90 days

BASIS OF PRESENTATION AND SIG_6

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES, Accounts Receivable Reserves (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2017
Movement in Valuation Allowances and Reserves [Roll Forward]
Provision for (recovery of) uncollectible accounts	$ (4,511)
Provision for doubtful accounts		$ 27,056	$ 28,000
Allowance for Sales Returns [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	537,000	648,000	415,000
Additions charged to operations	2,462,049	4,533,077	3,878,736
Sales returned	(2,351,049)	(4,435,077)	(3,756,736)
Balance, end of period	648,000	746,000	537,000
Allowance for Doubtful Accounts [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	254,000	233,000	226,000
Provision for (recovery of) uncollectible accounts	(4,511)
Provision for doubtful accounts		27,056	28,000
Write-offs, net of recoveries	(16,489)	(11,056)	0
Balance, end of period	$ 233,000	$ 249,000	$ 254,000

BASIS OF PRESENTATION AND SIG_7

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES, Property and Equipment (Details)	12 Months Ended
	Jun. 30, 2019
Machinery and Equipment [Member] | Minimum [Member]
Property, plant and equipment [Abstract]
Property and equipment, estimated useful lives	5 years
Machinery and Equipment [Member] | Maximum [Member]
Property, plant and equipment [Abstract]
Property and equipment, estimated useful lives	12 years
Computer Hardware [Member] | Minimum [Member]
Property, plant and equipment [Abstract]
Property and equipment, estimated useful lives	3 years
Computer Hardware [Member] | Maximum [Member]
Property, plant and equipment [Abstract]
Property and equipment, estimated useful lives	5 years
Computer Software [Member]
Property, plant and equipment [Abstract]
Property and equipment, estimated useful lives	3 years
Furniture and Fixtures [Member] | Minimum [Member]
Property, plant and equipment [Abstract]
Property and equipment, estimated useful lives	5 years
Furniture and Fixtures [Member] | Maximum [Member]
Property, plant and equipment [Abstract]
Property and equipment, estimated useful lives	10 years
Leasehold Improvements [Member]
Property, plant and equipment [Abstract]
Useful life, property, plant and equipment	Shorter of the estimated useful life or the lease term

BASIS OF PRESENTATION AND SIG_8

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES, Intangible Assets (Details)	12 Months Ended
	Jun. 30, 2019
Patents [Member]
Intangible Assets [Abstract]
Amortized life of patent	15 years

BASIS OF PRESENTATION AND SIG_9

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES, Revenue Recognition (Details)	12 Months Ended
	Jun. 30, 2019USD ($)
Revenue Recognition [Abstract]
Sponsorship and advertising market rate card prices	$ 117,000
Minimum [Member]
Revenue Recognition [Abstract]
Number of days for customer to make payment after being invoiced	30 days
Absolute right of return for shipments to wholesale customers on consignment terms	6 months
Maximum [Member]
Revenue Recognition [Abstract]
Number of days for customer to make payment after being invoiced	90 days
Period for return of jewels and finished jewelry for credit	30 days
Absolute right of return for shipments to wholesale customers on consignment terms	1 year
Customer payment period on consignment shipment	60 days
Online Channels [Member] | Maximum [Member]
Revenue Recognition [Abstract]
Period for return of jewels and finished jewelry for credit	60 days

BASIS OF PRESENTATION AND SI_10

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES, Returns Asset and Refund Liabilities (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2017
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Refund liabilities	$ 746,000	$ 648,000	$ 537,000
Asset returns	$ 279,000	$ 250,000	$ 0

BASIS OF PRESENTATION AND SI_11

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES, Advertising Costs (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2017
Selling and Marketing Expenses [Member]
Advertising Costs [Abstract]
Advertising expense	$ 154,000	$ 381,000	$ 210,000
Advertising Expenses [Member]
Advertising Costs [Abstract]
Advertising expense	$ 1,090,000	$ 2,820,000	$ 1,940,000

BASIS OF PRESENTATION AND SI_12

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES, Income Taxes (Details)	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Federal statutory income tax rate	21.00%	35.00%

BASIS OF PRESENTATION AND SI_13

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES, Net Income (Loss) per Common Share (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2017
Numerator [Abstract]
Net income (loss)	$ (1,275,826)	$ 2,275,467	$ (453,477)
Weighted average common shares outstanding [Abstract]
Basic (in shares)	21,406,487	21,860,699	21,193,793
Effect of dilutive securities (in shares)	0	250,524	0
Diluted (in shares)	21,406,487	22,111,223	21,193,793
Net income (loss) per common share [Abstract]
Basic (in dollars per share)	$ (0.06)	$ 0.10	$ (0.02)
Diluted (in dollars per share)	$ (0.06)	$ 0.10	$ (0.02)
Stock Options [Member]
Antidilutive Securities [Abstract]
Shares excluded from the computation of diluted net loss per common share (in shares)	2,390,000	2,330,000	2,380,000
Restricted Shares [Member]
Antidilutive Securities [Abstract]
Shares excluded from the computation of diluted net loss per common share (in shares)	264,000	0	355,000
Over-Allotment [Member]
Antidilutive Securities [Abstract]
Shares excluded from the computation of diluted net loss per common share (in shares)		630,500

SEGMENT INFORMATION AND GEOGR_3

SEGMENT INFORMATION AND GEOGRAPHIC DATA, Product Line (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)Segment	Dec. 31, 2017USD ($)
SEGMENT INFORMATION AND GEOGRAPHIC DATA [Abstract]
Number of operating segments | Segment		2
Number of reportable segments | Segment		2
Summary information by segment [Abstract]
Net sales	$ 13,163,048	$ 32,244,109	$ 27,032,964
Product line cost of goods sold	8,298,286	17,352,167	15,470,617
Operating (loss) income	(1,593,588)	2,265,557	(608,544)
Depreciation and amortization	229,993	481,319	422,018
Capital expenditures	130,649	361,440	271,390
Continuing Operations [Member]
Summary information by segment [Abstract]
Net sales	13,163,048	32,244,109	27,032,964
Product line cost of goods sold	7,075,457	15,101,942	13,751,503
Product line gross profit	6,087,591	17,142,167	13,281,461
Operating (loss) income	(1,593,588)	2,265,557	(608,544)
Depreciation and amortization	229,993	481,319	422,018
Capital expenditures	130,649	361,440	271,390
Finished Jewelry [Member] | Continuing Operations [Member]
Summary information by segment [Abstract]
Net sales	6,163,050	15,457,343	10,452,216
Product line cost of goods sold	3,435,233	6,859,112	5,226,660
Product line gross profit	2,727,817	8,598,231	5,225,556
Loose Jewels [Member] | Continuing Operations [Member]
Summary information by segment [Abstract]
Net sales	6,999,998	16,786,766	16,580,748
Product line cost of goods sold	3,640,224	8,242,830	8,524,843
Product line gross profit	3,359,774	8,543,936	8,055,905
Operating and Reportable Segments [Member] | Traditional [Member] | Continuing Operations [Member]
Summary information by segment [Abstract]
Net sales	6,793,726	15,905,353	15,946,219
Product line cost of goods sold	4,150,931	8,297,987	8,609,330
Product line gross profit	2,642,795	7,607,366	7,336,889
Operating (loss) income	(1,349,756)	622,005	(836,797)
Depreciation and amortization	170,584	308,500	300,308
Capital expenditures	100,960	291,465	123,944
Operating and Reportable Segments [Member] | Traditional [Member] | Finished Jewelry [Member] | Continuing Operations [Member]
Summary information by segment [Abstract]
Net sales	1,672,066	2,815,656	2,515,443
Product line cost of goods sold	1,462,371	1,638,561	1,610,845
Product line gross profit	209,695	1,177,095	904,598
Operating and Reportable Segments [Member] | Traditional [Member] | Loose Jewels [Member] | Continuing Operations [Member]
Summary information by segment [Abstract]
Net sales	5,121,660	13,089,697	13,430,776
Product line cost of goods sold	2,688,560	6,659,426	6,998,485
Product line gross profit	2,433,100	6,430,271	6,432,291
Operating and Reportable Segments [Member] | Online Channels [Member] | Continuing Operations [Member]
Summary information by segment [Abstract]
Net sales	6,369,322	16,338,756	11,086,745
Product line cost of goods sold	2,924,526	6,803,955	5,142,173
Product line gross profit	3,444,796	9,534,801	5,944,572
Operating (loss) income	(243,832)	1,643,552	228,253
Depreciation and amortization	59,409	172,819	121,710
Capital expenditures	29,689	69,975	147,446
Operating and Reportable Segments [Member] | Online Channels [Member] | Finished Jewelry [Member] | Continuing Operations [Member]
Summary information by segment [Abstract]
Net sales	4,490,984	12,641,687	7,936,773
Product line cost of goods sold	1,972,862	5,220,551	3,615,815
Product line gross profit	2,518,122	7,421,136	4,320,958
Operating and Reportable Segments [Member] | Online Channels [Member] | Loose Jewels [Member] | Continuing Operations [Member]
Summary information by segment [Abstract]
Net sales	1,878,388	3,697,069	3,149,972
Product line cost of goods sold	951,664	1,583,404	1,526,358
Product line gross profit	926,674	2,113,665	1,623,614
Segment Reconciling Items [Member] | Continuing Operations [Member]
Summary information by segment [Abstract]
Product line cost of goods sold	8,298,286	17,352,167	15,470,617
Segment Reconciling Items [Member] | Continuing Operations [Member] | Product Line Cost of Goods Sold [Member]
Summary information by segment [Abstract]
Product line cost of goods sold	7,075,457	15,101,942	13,751,503
Segment Reconciling Items [Member] | Continuing Operations [Member] | Non-Capitalized Manufacturing and Production Control Expenses [Member]
Summary information by segment [Abstract]
Product line cost of goods sold	805,400	1,442,446	1,352,311
Segment Reconciling Items [Member] | Continuing Operations [Member] | Freight Out [Member]
Summary information by segment [Abstract]
Product line cost of goods sold	272,790	578,772	417,074
Segment Reconciling Items [Member] | Continuing Operations [Member] | Inventory Valuation Allowances [Member]
Summary information by segment [Abstract]
Product line cost of goods sold	0	393,000	598,000
Segment Reconciling Items [Member] | Continuing Operations [Member] | Other Inventory Adjustments [Member]
Summary information by segment [Abstract]
Product line cost of goods sold	$ 144,639	$ (163,993)	$ (648,271)

SEGMENT INFORMATION AND GEOGR_4

SEGMENT INFORMATION AND GEOGRAPHIC DATA, Data by Geographic Area (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2017
Net sales [Abstract]
Net sales	$ 13,163,048	$ 32,244,109	$ 27,032,964
Continuing Operations [Member]
Net sales [Abstract]
Net sales	13,163,048	32,244,109	27,032,964
Reportable Geographical Components [Member] | Continuing Operations [Member] | United States [Member]
Net sales [Abstract]
Net sales	12,121,003	27,979,835	25,176,220
Reportable Geographical Components [Member] | Continuing Operations [Member] | International [Member]
Net sales [Abstract]
Net sales	$ 1,042,045	$ 4,264,274	$ 1,856,744

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2017
Total inventories, net of reserves [Abstract]
Raw materials	$ 4,450,478	$ 5,083,436	$ 4,853,049
Work-in-process	10,871,823	10,659,786	9,219,383
Finished goods	18,557,224	17,483,773	17,896,992
Finished goods on consignment	2,086,084	523,971	1,093,752
Total supplies inventory	129,111	45,572	75,441
Less: inventory reserves	(2,361,000)	(1,968,000)	(2,165,000)
Total classified inventories	33,733,720	31,828,538	30,973,617
Short-term portion	11,909,792	10,979,891	11,208,658
Long-term portion	21,823,928	20,848,647	19,764,959
Inventories issued to active production	1,230,000	2,450,000	2,990,000
Inventory of net jewelry	9,330,000	7,790,000	8,770,000
Inventory of net loose jewels	24,270,000	24,000,000	22,130,000
Inventory reserve for obsolescence	1,790,000	1,300,000	1,420,000
Carrying value of inventory reserve for obsolescence of finished jewelry	19,000	7,000	91,000
Lower of cost or market value	1,770,000	1,290,000	1,330,000
Inventory rework reserve for recut	460,000	534,000	557,000
Inventory reserve for shrinkage of finished jewelry on repairs	0	116,000	89,000
Inventory reserve for recuts	460,000	418,000	468,000
Inventory reserve for shrinkage	112,000	136,000	191,000
Inventory reserve for shrinkage of finished jewelry	105,000	88,000	173,000
Inventory reserve for shrinkage of loose jewels	7,000	48,000	18,000
Shrinkage reserve for finished goods on consignment	15,000	18,000	60,000
Inventory reserve for shrinkage of loose jewels on consignment	1,000	11,000	5,000
Inventory reserve for shrinkage of finished jewelry on consignment	14,000	7,000	55,000
Finished Jewelry [Member]
Total inventories, net of reserves [Abstract]
Raw materials	643,797	595,649	564,689
Work-in-process	487,680	1,196,268	890,664
Finished goods	6,332,533	5,517,951	6,304,747
Finished goods on consignment	1,867,549	476,648	1,007,471
Total	9,331,559	7,786,516	8,767,571
Loose Jewels [Member]
Total inventories, net of reserves [Abstract]
Raw materials	3,806,681	4,487,787	4,288,360
Work-in-process	10,384,143	9,463,518	8,328,719
Finished goods	9,878,691	10,015,822	9,487,245
Finished goods on consignment	203,535	29,323	26,281
Total	$ 24,273,050	$ 23,996,450	$ 22,130,605

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2017
Property, plant and equipment, net [Abstract]
Property and equipment, gross	$ 4,818,038	$ 5,179,490	$ 4,687,389
Less accumulated depreciation	(3,673,840)	(4,153,392)	(3,445,189)
Property and equipment, net	1,144,198	1,026,098	1,242,200
Depreciation expense	229,000	480,000	420,000
Computer Software [Member]
Property, plant and equipment, net [Abstract]
Property and equipment, gross	1,253,894	1,512,533	1,206,465
Machinery and Equipment [Member]
Property, plant and equipment, net [Abstract]
Property and equipment, gross	1,048,288	1,100,629	1,026,736
Computer Hardware [Member]
Property, plant and equipment, net [Abstract]
Property and equipment, gross	1,026,987	1,064,302	1,009,008
Leasehold Improvements [Member]
Property, plant and equipment, net [Abstract]
Property and equipment, gross	1,151,659	1,158,218	1,126,553
Furniture and Fixtures [Member]
Property, plant and equipment, net [Abstract]
Property and equipment, gross	$ 337,210	$ 343,808	$ 318,627

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2017
Intangible assets [Abstract]
Intangible assets, gross	$ 1,050,227	$ 1,114,546	$ 1,022,647
Less accumulated amortization	(1,015,394)	(1,017,173)	(1,014,050)
Intangible assets, net	34,833	97,373	8,597
Amortization expense	1,000	2,000	2,000
Estimated amortization expenses [Abstract]
2020		9,000
2021		9,000
2022		9,000
2023		8,000
2024		8,000
Patents [Member]
Intangible assets [Abstract]
Intangible assets, gross	969,632	$ 1,007,497	958,604
Weighted average amortization period		15 years
Trademarks [Member]
Intangible assets [Abstract]
Intangible assets, gross	73,877	$ 100,331	57,325
Weighted average amortization period		9 years 6 months
License Rights [Member]
Intangible assets [Abstract]
Intangible assets, gross	$ 6,718	$ 6,718	$ 6,718
Weighted average amortization period		0 years

ACCRUED EXPENSES AND OTHER LI_3

ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2017
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract]
Accrued compensation and related benefits	$ 760,324	$ 359,077	$ 652,177
Accrued cooperative advertising	73,033	60,784	134,018
Deferred rent	156,306	139,558	131,389
Accrued sales tax	286,864	17,149	20,844
Other	49,081	42,377	42,372
Accrued expenses and other liabilities	$ 1,325,608	$ 618,945	$ 980,800

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)ft²	Dec. 31, 2017USD ($)	May 23, 2014USD ($)
Lease Commitments [Abstract]
Land subject to leases | ft²		36,350
Leasehold improvements offered by landlord				$ 550,000
Lease signing and moving incentives offered by landlord				$ 73,000
Period for which rent is abated		7 months
Future minimum payments under operating lease [Abstract]
2020		$ 625,788
2021		642,997
2022		219,723
Total		1,488,508
Other commitments [Abstract]
Rent expense	$ 260,000	$ 528,000	$ 510,000
Purchase Commitment [Abstract]
Percentage committed to be purchased		100.00%
Period of exclusive supply agreement		2 years
Purchase commitment in initial new order		$ 52,950,000
Remaining purchase commitment		43,980,000
Actual purchases under purchase amendment	$ 4,890,000	8,910,000	$ 9,390,000
Minimum [Member]
Purchase Commitment [Abstract]
Future minimum annual purchase commitments		9,000,000
Maximum [Member]
Purchase Commitment [Abstract]
Future minimum annual purchase commitments		$ 12,000,000

LINE OF CREDIT, White Oak Credi

LINE OF CREDIT, White Oak Credit Facility (Details) - White Oak Commercial Finance LLC [Member]	Jul. 13, 2020USD ($)	Jul. 15, 2019USD ($)	Jul. 13, 2018USD ($)	Jun. 30, 2019USD ($)Installment
Revolving Credit Facility [Member]
Line of Credit Facility Disclosure [Abstract]
Revolving line of credit				$ 5,000,000
Line of credit maturity date				Jul. 13, 2021
Termination fee, first year				$ 100,000
Termination fee, second year				50,000
Termination fee, thereafter				0
Non-refundable origination fee				$ 125,000
Number of installments | Installment				3
Non-refundable origination fee, installment			$ 41,667
Interest rate in event of default in excess of standard rate				2.00%
Revolving Credit Facility [Member] | Maximum [Member]
Line of Credit Facility Disclosure [Abstract]
Percentage of eligible inventory in net borrowing base				60.00%
Eligible inventory of precious metal jewelry components required for advances				$ 500,000
Indebtedness to be maintained in the event of default to avoid triggering of default terms				250,000
Revolving Credit Facility [Member] | Minimum [Member]
Line of Credit Facility Disclosure [Abstract]
Excess availability covenant				$ 500,000
Debt instrument effective percentage				5.50%
Revolving Credit Facility [Member] | Forecast [Member]
Line of Credit Facility Disclosure [Abstract]
Non-refundable origination fee, installment	$ 41,666
Revolving Credit Facility [Member] | Subsequent Event [Member]
Line of Credit Facility Disclosure [Abstract]
Non-refundable origination fee, installment		$ 41,667
Revolving Credit Facility [Member] | LIBOR [Member]
Line of Credit Facility Disclosure [Abstract]
Debt instrument, term of variable rate				1 month
Line of credit, spread on variable rate				3.75%
Line of credit, description of variable rate basis				one-month LIBOR
Revolving Credit Facility [Member] | Floor Rate [Member]
Line of Credit Facility Disclosure [Abstract]
Line of credit, spread on variable rate				1.25%
Non-Revolving Credit Facility [Member]
Line of Credit Facility Disclosure [Abstract]
Revolving line of credit				$ 1,000,000
Non-Revolving Credit Facility [Member] | LIBOR [Member]
Line of Credit Facility Disclosure [Abstract]
Line of credit, spread on variable rate				4.75%

LINE OF CREDIT, Wells Fargo Cre

LINE OF CREDIT, Wells Fargo Credit Facility (Details) - Wells Fargo [Member] - Line of Credit [Member] $ in Thousands	12 Months Ended
	Jun. 30, 2019USD ($)
Credit Facility [Abstract]
Revolving line of credit	$ 10,000
Line of credit facility, sublimit for letter of credit	$ 1,000
Line of credit maturity date	Jun. 25, 2018
Interest rate in event of default in excess of standard rate	3.00%
Credit facility outstanding	$ 0
LIBOR [Member]
Credit Facility [Abstract]
Line of credit, description of variable rate basis	Wells Fargo’s three-month LIBOR rate
Debt instrument, term of variable rate	3 months
Line of credit, spread on variable rate	2.00%
Prime Rate [Member]
Credit Facility [Abstract]
Line of credit, description of variable rate basis	Wells Fargo’s Prime Rate
Line of credit, spread on variable rate	1.00%

SHAREHOLDERS' EQUITY AND STOC_3

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Shareholders' Equity (Details) - USD ($)	Jul. 03, 2019	Jun. 11, 2019	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2017
Common Stock [Abstract]
Common stock, shares authorized (in shares)			50,000,000	50,000,000	50,000,000
Common stock, par value (in dollars per share)			$ 0	$ 0	$ 0
Common stock, shares outstanding (in shares)			21,705,173	28,027,569	21,580,102
Common stock voting rights				common stock are entitled to one vote for each share held
Preferred Stock [Abstract]
Preferred stock, shares authorized (in shares)				10,000,000
Preferred stock, par value (in dollars per share)				$ 0
Preferred stock, shares issued (in shares)				0
Dividends [Abstract]
Cash dividends			$ 0	$ 0	$ 0
Shelf Registration Statement [Abstract]
Remaining warrants available to purchase shares of common stock or preferred stock				13,990,000
Issuance of common stock (in shares)		6,250,000
Share price (in dollars per share)		$ 1.60
Net proceeds from issuance of common stock		$ 9,060,000	$ 0	$ 9,058,568	$ 0
Net of underwriting discount, fees and expenses		$ 941,000
Subsequent Event [Member]
Shelf Registration Statement [Abstract]
Issuance of common stock (in shares)	6,880,500
Share price (in dollars per share)	$ 1.60
Net of underwriting discount, fees and expenses	$ 1,020,000
Gross proceeds from issuance of common stock	$ 11,010,000
Over-Allotment [Member]
Shelf Registration Statement [Abstract]
Option buying period				30 days
Number of shares available for purchase, Option buying period (in shares)				937,500
Over-Allotment [Member] | Subsequent Event [Member]
Shelf Registration Statement [Abstract]
Issuance of common stock (in shares)	630,500
Share price (in dollars per share)	$ 1.60
Net proceeds from issuance of common stock	$ 930,000
Net of underwriting discount, fees and expenses	$ 82,000
Maximum [Member]
Shelf Registration Statement [Abstract]
Warrants to purchase shares of common stock or preferred stock				$ 25,000,000

SHAREHOLDERS' EQUITY AND STOC_4

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Equity Compensation Plans and Stock-Based Compensation (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2017	Dec. 31, 2016
Stock-Based Compensation [Abstract]
Share-based compensation expense	$ 235,633	$ 502,805	$ 443,482
Employee Stock Options [Member]
Equity Compensation Plans [Abstract]
Stock options outstanding (in shares)	2,388,169	2,523,638	2,377,265	2,134,898
Stock-Based Compensation [Abstract]
Share-based compensation expense	$ 142,096	$ 235,984	$ 336,534
Stock-based compensation capitalized as a cost of inventory	0	0	0
Restricted Stock Awards [Member]
Stock-Based Compensation [Abstract]
Share-based compensation expense	$ 93,537	$ 266,821	$ 106,948
2018 Equity Incentive Plan [Member]
Equity Compensation Plans [Abstract]
Number of shares authorized (in shares)		3,300,000
Stock options outstanding (in shares)		285,025
2018 Equity Incentive Plan [Member] | Maximum [Member]
Equity Compensation Plans [Abstract]
Expiration term award		10 years
2018 Equity Incentive Plan [Member] | Independent Contractors [Member] | Maximum [Member]
Equity Compensation Plans [Abstract]
Expiration term award		10 years
2018 Equity Incentive Plan [Member] | Board of Directors [Member]
Equity Compensation Plans [Abstract]
Vesting period		1 year
2018 Equity Incentive Plan [Member] | Employee Stock Options [Member]
Equity Compensation Plans [Abstract]
Vesting period		4 years
2018 Equity Incentive Plan [Member] | Restricted Stock Awards [Member]
Equity Compensation Plans [Abstract]
Vesting period		4 years
2008 Stock Incentive Plan [Member]
Equity Compensation Plans [Abstract]
Number of shares authorized (in shares)		6,000,000
2008 Stock Incentive Plan [Member] | Maximum [Member]
Equity Compensation Plans [Abstract]
Expiration term award		10 years
2008 Stock Incentive Plan [Member] | Independent Contractors [Member] | Maximum [Member]
Equity Compensation Plans [Abstract]
Expiration term award		10 years
2008 Stock Incentive Plan [Member] | Board of Directors [Member]
Equity Compensation Plans [Abstract]
Vesting period		1 year
2008 Stock Incentive Plan [Member] | Employee Stock Options [Member]
Equity Compensation Plans [Abstract]
Vesting period		4 years
2008 Stock Incentive Plan [Member] | Restricted Stock Awards [Member]
Equity Compensation Plans [Abstract]
Vesting period		4 years

SHAREHOLDERS' EQUITY AND STOC_5

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Stock Options (Details) - Stock Options [Member] - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2017	Jun. 30, 2019
Stock Option Activity [Roll Forward]
Outstanding, beginning balance (in shares)	2,377,265	2,388,169	2,134,898
Granted (in shares)	216,157	285,025	836,369
Exercised (in shares)		(52,500)
Forfeited (in shares)	(173,750)	(30,000)	(103,000)
Expired (in shares)	(31,503)	(67,056)	(491,002)
Outstanding, ending balance (in shares)	2,388,169	2,523,638	2,377,265
Weighted Average Exercise Price [Roll Forward]
Outstanding, beginning balance (in dollars per share)	$ 1.46	$ 1.46	$ 1.99
Granted (in dollars per share)	1.27	1	0.94
Exercised (in dollars per share)		1.21
Forfeited (in dollars per share)	1.05	1.20	1.22
Expired (in dollars per share)	2.17	1.71	2.95
Outstanding, ending balance (in dollars per share)	1.46	1.41	1.46
Additional Disclosures [Abstract]
Fair value of stock options (in dollars per share)	$ 0.68	$ 0.57	$ 0.53
Fair value of stock options vested	$ 232,000	$ 176,000	$ 400,000
Weighted average assumptions for stock options [Abstract]
Dividend yield	0.00%	0.00%	0.00%
Expected volatility	62.80%	61.00%	63.40%
Risk-free interest rate	2.76%	3.09%	1.90%
Expected lives	5 years 4 months 24 days	5 years 6 months	5 years 6 months
Options Outstanding [Abstract]
Balance as of end of period (in shares)	2,388,169	2,388,169	2,134,898	2,523,638
Weighted average remaining contractual life		6 years 11 months 12 days
Weighted average exercise price (in dollars per share)	$ 1.46	$ 1.41	$ 1.99	$ 1.41
Options Exercisable [Abstract]
Balance as of end of period (in shares)				2,053,613
Weighted average remaining contractual life		6 years 6 months 4 days
Weighted average exercise price (in dollars per share)				$ 1.49
Options Vested or Expected to Vest [Abstract]
Balance as of end of period (in shares)				2,460,292
Weighted average remaining contractual life		6 years 10 months 28 days
Weighted average exercise price (in dollars per share)				$ 1.42
Additional Disclosures [Abstract]
Unrecognized stock-based compensation expense related to unvested awards				$ 167,000
Total compensation cost not yet recognized, period for recognition		18 months
Aggregate intrinsic value of stock options outstanding				1,360,000
Aggregate intrinsic value of stock options exercisable				1,360,000
Aggregate intrinsic value of stock options vested and expected to vest				$ 1,360,000
Aggregate intrinsic value of stock options exercised	$ 0	$ 51,000	$ 0

SHAREHOLDERS' EQUITY AND STOC_6

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Restricted Stock (Details) - Restricted Stock [Member] - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2017
Restricted Stock Activity [Roll Forward]
Unvested, beginning balance (in shares)	355,417	264,000	359,400
Granted (in shares)	264,000	129,500	420,000
Vested (in shares)	(216,488)	(154,396)	(214,200)
Canceled (in shares)	(138,929)	(109,604)	(209,783)
Unvested, ending balance (in shares)	264,000	129,500	355,417
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning balance (in dollars per share)	$ 1.11	$ 1.25	$ 0.91
Granted (in dollars per share)	1.25	1.07	1.11
Vested (in dollars per share)	1.11	1.20	0.92
Canceled (in dollars per share)	1.11	1.31	0.96
Unvested, ending balance (in dollars per share)	$ 1.25	$ 1.08	$ 1.11
Additional Disclosures [Abstract]
Unrecognized stock-based compensation expense related to unvested awards		$ 32,000
Total compensation cost not yet recognized, period for recognition		1 month

INCOME TAXES, Income Tax Net Be

INCOME TAXES, Income Tax Net Benefit (Expense) (Details) - USD ($)	1 Months Ended		6 Months Ended	12 Months Ended
	May 31, 2019	Jan. 31, 2019	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2017
INCOME TAXES [Abstract]
Federal statutory income tax rate				21.00%	35.00%
Tax effect of remeasurement of deferred tax assets					$ 519,000
Tax benefit of AMT credit refund	$ (80,000)	$ (23,000)	$ (328,000)
Current [Abstract]
Federal			327,594	$ 23,149	0
State			(9,534)	(21,706)	(27,609)
Total current benefit (expense)			318,060	1,443	(27,609)
Deferred [Abstract]
Federal			0	0	0
State			0	0	0
Total deferred benefit (expense)			0	0	0
Income tax net benefit (expense)			$ 318,060	$ 1,443	$ (27,609)

INCOME TAXES, Deferred Income T

INCOME TAXES, Deferred Income Tax Assets (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2017
Deferred income tax assets [Abstract]
Reversals and accruals	$ 970,516	$ 668,813	$ 686,573
Prepaid expenses	(38,552)	(38,944)	(28,744)
Federal NOL carryforwards	4,911,437	5,540,016	5,185,438
State NOL carryforwards	674,522	714,588	681,364
Hong Kong NOL carryforwards	995,566	995,566	995,566
Federal benefit on state taxes under uncertain tax positions	100,703	96,144	94,142
Stock-based compensation	194,524	412,148	422,623
Research tax credit	83,315	235,742	434,637
Alternative minimum tax	0	23,149	350,743
Contributions carryforward	0	1,923	0
Depreciation	(157,310)	(159,100)	(178,670)
Accrued rent	88,923	121,124	138,178
Loss on impairment of long-lived assets	32,985	33,157	33,864
Valuation allowance	(7,856,629)	(8,644,326)	(8,815,714)
Total deferred income tax assets, net	$ 0	$ 0	$ 0

INCOME TAXES, Income Tax Reconc

INCOME TAXES, Income Tax Reconciliation (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2017
Effective income tax rate reconciliation [Abstract]
Anticipated income tax (expense) benefit at statutory rate	$ 334,716	$ (477,545)	$ 144,795
State income tax expense, net of federal tax effect	7,755	(42,334)	(54,083)
Federal income tax effect of change in tax rate	0	0	(3,729,007)
Income tax effect of uncertain tax positions	37,671	17,494	(17,946)
Return to provision adjustments	0	126	2,982
Stock-based compensation	9,855	(3,929)	(36,233)
Other changes in deferred income tax assets, net	(243,325)	(280,066)	(437)
Decrease in valuation allowance	171,388	787,697	3,662,320
Income tax net benefit (expense)	$ 318,060	$ 1,443	$ (27,609)
Effective income tax rate reconciliation, percent [Abstract]
Statutory income tax rate	22.13%	22.16%	23.25%
Federal [Member]
Effective income tax rate reconciliation, percent [Abstract]
Statutory income tax rate	21.00%	21.00%	21.00%
State [Member]
Effective income tax rate reconciliation, percent [Abstract]
Statutory income tax rate	1.13%	1.16%	2.25%

INCOME TAXES, Tax Credits and N

INCOME TAXES, Tax Credits and Net Operating Loss Carryforwards (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2017
Income Tax Credit Carryforward [Abstract]
Federal income tax credits	$ 313,000	$ 102,000	$ 884,000
Earliest Tax Year [Member]
Income Tax Credit Carryforward [Abstract]
Federal income tax credit expiration date	Dec. 31, 2020	Dec. 31, 2020	Dec. 31, 2020
Latest Tax Year [Member]
Income Tax Credit Carryforward [Abstract]
Federal income tax credit expiration date	Dec. 31, 2021	Dec. 31, 2021	Dec. 31, 2021
Federal [Member]
Income Taxes Operating Loss Carryforwards[Abstract]
Operating loss carryforwards	$ 26,280,000	$ 23,390,000	$ 24,590,000
Federal [Member] | Minimum [Member]
Income Taxes Operating Loss Carryforwards[Abstract]
Operating loss carryforwards, expiration dates	Dec. 31, 2030	Dec. 31, 2030	Dec. 31, 2030
Federal [Member] | Maximum [Member]
Income Taxes Operating Loss Carryforwards[Abstract]
Operating loss carryforwards, expiration dates	Dec. 31, 2037	Dec. 31, 2037	Dec. 31, 2037
North Carolina [Member]
Income Taxes Operating Loss Carryforwards[Abstract]
Operating loss carryforwards	$ 20,240,000	$ 20,200,000	$ 20,220,000
North Carolina [Member] | Minimum [Member]
Income Taxes Operating Loss Carryforwards[Abstract]
Operating loss carryforwards, expiration dates	Dec. 31, 2023	Dec. 31, 2023	Dec. 31, 2023
North Carolina [Member] | Maximum [Member]
Income Taxes Operating Loss Carryforwards[Abstract]
Operating loss carryforwards, expiration dates	Dec. 31, 2033	Dec. 31, 2033	Dec. 31, 2033
Other State [Member] | Minimum [Member]
Income Taxes Operating Loss Carryforwards[Abstract]
Operating loss carryforwards, expiration dates	Dec. 31, 2021	Dec. 31, 2021	Dec. 31, 2021
Other State [Member] | Maximum [Member]
Income Taxes Operating Loss Carryforwards[Abstract]
Operating loss carryforwards, expiration dates	Dec. 31, 2034	Dec. 31, 2034	Dec. 31, 2034
Hong Kong Tax Code [Member]
Income Taxes Operating Loss Carryforwards[Abstract]
Operating loss carryforwards	$ 6,030,000	$ 6,030,000	$ 6,030,000
Valuation allowance	$ (996,000)	$ (996,000)	$ (996,000)

INCOME TAXES, Uncertain Tax Pos

INCOME TAXES, Uncertain Tax Positions (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2017
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract]
Gross liability for income taxes that will impact the company's effective tax rate	$ 525,000	$ 512,000	$ 560,000
Direct reduction to associated deferred tax asset	(54,000)	(19,000)	(98,000)
Interest and penalties associated with uncertain tax positions	10,000	22,000	28,000
Interest and penalties included in the accrued income tax liability for uncertain tax positions	203,000	225,000	193,000
Activities related to gross liability for uncertain tax positions [Roll Forward]
Beginning balance	560,373	524,703	532,764
Increases related to prior calendar year tax positions			27,609
Decreases related to prior calendar year tax positions	(35,670)	(12,936)
Ending balance	$ 524,703	$ 511,767	$ 560,373

MAJOR CUSTOMERS AND CONCENTRA_3

MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK (Details) - Customer Concentration Risk [Member]	6 Months Ended		12 Months Ended
	Jun. 30, 2018		Jun. 30, 2019		Dec. 31, 2017
Accounts Receivable [Member] | Customer A [Member]
Concentration of Credit Risk [Abstract]
Concentration risk, percentage	23.00%		25.00%			[1]
Accounts Receivable [Member] | Customer B [Member]
Concentration of Credit Risk [Abstract]
Concentration risk, percentage		[2]	15.00%			[2]
Accounts Receivable [Member] | Customer C [Member]
Concentration of Credit Risk [Abstract]
Concentration risk, percentage	10.00%		13.00%		18.00%
Accounts Receivable [Member] | Customer D [Member]
Concentration of Credit Risk [Abstract]
Concentration risk, percentage		[3]		[3]	12.00%
Total Net Sales [Member] | Customer A [Member]
Concentration of Credit Risk [Abstract]
Concentration risk, percentage	12.00%		14.00%		21.00%
Total Net Sales [Member] | Customer C [Member]
Concentration of Credit Risk [Abstract]
Concentration risk, percentage	12.00%		10.00%			[4]
[1]	Customer A did not have individual balances that represented 10% or more of total gross accounts receivable as of December 31, 2017.
[2]	Customer B did not have individual balances that represented 10% or more of total gross accounts receivable as of June 30, 2018 and December 31, 2017.
[3]	Customer D did not have individual balances that represented 10% or more of total gross accounts receivable as of June 30, 2019 and 2018.
[4]	Customer C did not have net sales that represented 10% or more of total net sales for the calendar year ended December 31, 2017.

EMPLOYEE BENEFIT PLAN (Details)

EMPLOYEE BENEFIT PLAN (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2017
EMPLOYEE BENEFIT PLAN [Abstract]
Company contribution, cost recognized	$ 44,000	$ 67,000	$ 64,000

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) - USD ($)	Jul. 03, 2019	Jun. 11, 2019	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2017
Subsequent Event [Abstract]
Issuance of common stock (in shares)		6,250,000
Share price (in dollars per share)		$ 1.60
Net proceeds from issuance of common stock		$ 9,060,000	$ 0	$ 9,058,568	$ 0
Subsequent Event [Member]
Subsequent Event [Abstract]
Issuance of common stock (in shares)	6,880,500
Share price (in dollars per share)	$ 1.60
Over-Allotment [Member] | Subsequent Event [Member]
Subsequent Event [Abstract]
Issuance of common stock (in shares)	630,500
Share price (in dollars per share)	$ 1.60
Net proceeds from issuance of common stock	$ 930,000