COVID-19 Update for Investors

Update as of April 9, 2020:

Charles & Colvard is implementing a number of measures to help mitigate the operating and financial impact related to the pandemic, including:

  • Deploying a work from home policy for all but essential employees due to a mandated stay-at-home order by the state of North Carolina;
  • Continuing to process online orders on the Company’s e-commerce website during the closure period, with limited shipping and fulfillment capabilities until state and municipal stay-at-home orders permit full operations to resume;
  • Working with third party partners to enable alternate distribution options, though there may be limited ability to deploy these contingency plans due to global stay-at-home restrictions;
  • Furloughing approximately 50% of employees, starting April 13, 2020, and funding all health insurance premiums during the furlough for all eligible employees impacted by these measures;
  • Implementing temporary salary reductions for all employees, including 25% for the Chief Executive Officer and 15% for the Chief Financial Officer and Chief Operating Officer;
  • Instituting a 50% reduction in Board Director fees;
  • Reducing non-payroll expenses, including product development, digital marketing, and travel;
  • Working with advisors to maximize participation in all eligible government or other initiatives available to businesses or employees impacted by the COVID-19 pandemic such as extending Families First Coronavirus Response Act (FFCRA) benefits to impacted employees, and applying for government-subsidized business loans. The Company also extended new 401(k) benefits to assist employees with additional distributions and loan terms during this challenging time.