{"url_path":"/sec/cik-0001015155/8-k/2026-03-04/item-7-01","section_key":"item-7-01","section_title":"Item 7.01 , is being furnished pursuant to Item 7.01 and shall not be deemed “filed” for the purposes of Section 18 of","topic":"sec","document":{"doc_type":"8-K","doc_date":"2026-03-04","source_url":"https://www.sec.gov/Archives/edgar/data/1015155/0001104659-26-023038-index.html","accession_number":"0001104659-26-023038","cik":"0001015155","ticker":null,"issuer_name":"CHARLES & COLVARD LTD","edgar_url":"https://www.sec.gov/Archives/edgar/data/1015155/0001104659-26-023038-index.html","primary_entity_key":"0001015155","primary_entity_name":"CHARLES & COLVARD LTD"},"word_count":695,"has_tables":true,"body_markdown":"Item 7.01, is being furnished pursuant to Item 7.01 and shall not be deemed “filed” for the purposes of Section 18 of\nthe Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section,\nnor shall it be deemed incorporated by reference in any filing under the Exchange Act, as amended, or the Securities Act of 1933, as amended,\nexcept as shall be expressly set forth by specific reference in such a filing.\n\n \n\n**Cautionary Note Regarding the Chapter 11 Case**\n\n \n\nThe Company cautions that trading in the Company’s common stock\nduring the pendency of the Chapter 11 Case is highly speculative and poses substantial risks. Trading prices for the Company’s common\nstock may bear little or no relationship to the actual recovery, if any, by the holders of the Company’s common stock in the Chapter\n11 Case. The Company expects that holders of the Company’s common stock may experience a significant or complete loss on their investment,\ndepending on the outcome of the Chapter 11 Case. Accordingly, the Company urges extreme caution\nwith respect to existing and future investments in its common stock.\n\n \n\n \n\n \n\n**Cautionary Statement Regarding Forward Looking Statements**\n\n \n\nThis Current Report contains forward-looking statements within the\nmeaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as\namended. These forward-looking statements include, but are not limited to, statements regarding the Company’s expectations with\nrespect to operating in the normal course, statements regarding the Chapter 11 process, and statements about the Company’s plans,\nobjectives, representations, and contentions and are not historical facts and typically are identified by use of terms such as “may,”\n“will,” “should,” “could,” “expect,” “intend,” “plan,” “anticipate,”\n“believe,” “estimate,” “predict,” “continue,” and similar words, although some forward-looking\nstatements are expressed differently.\n\n \n\nAll forward-looking statements are subject to the risks and uncertainties\ninherent in predicting the future. You should be aware that although the forward-looking statements included herein represent management’s\ncurrent judgment and expectations, the Company’s actual results may differ materially from those projected, stated, or implied in\nthese forward-looking statements as a result of many factors including, but not limited to, risks attendant to the bankruptcy process,\nincluding the Company’s ability to obtain court approval from the Court with respect to motions or other requests made to the Court\nthroughout the course of Chapter 11; the effects of Chapter 11, including increased legal and other professional costs necessary to execute\nthe Company’s restructuring process, on the Company’s liquidity (including the availability of operating capital during the\npendency of Chapter 11); the effects of Chapter 11 on the interests of various constituents and financial stakeholders; the length of\ntime that the Company will operate under Chapter 11 protection and the continued availability of operating capital during the pendency\nof Chapter 11; objections to the Company’s restructuring process or other pleadings filed that could protract Chapter 11; risks\nassociated with the Company’s proposed restructuring plan; risks associated with third-party motions in Chapter 11; Court rulings\nin the Chapter 11 process and the outcome of Chapter 11 in general; employee attrition and the Company’s ability to retain senior\nmanagement and other key personnel due to the distractions and uncertainties; in addition to the other risks and uncertainties described\nin more detail in the Company’s filings with the U.S. Securities and Exchange Commission, including the detailed factors discussed\nunder the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30,\n2024, as supplemented in the Company’s Quarterly Report on Form 10-Q for the fiscal quarters ended September 30, 2024,\nDecember 31, 2024 and March 31, 2025. Furthermore, such forward-looking statements speak only as of the date of this Current\nReport. Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect\nnew circumstances or unanticipated events as they occur except as required by the federal securities laws, and you are urged to review\nand consider disclosures that we make in the reports that we file with the U.S. Securities and Exchange Commission, that discuss other\nfactors relevant to our business."}