# EDGAR Filing Document

**Accession Number:** 0001015155
**File Stem:** 0001104659-25-082695
**Filing Date:** 2025-8
**Character Count:** 14729
**Document Hash:** f41c776c570924722b66f64dca61723d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-082695.hdr.sgml**: 20250826

**ACCESSION NUMBER**: 0001104659-25-082695

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20250821

**ITEM INFORMATION**: Unregistered Sales of Equity Securities

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250826

**DATE AS OF CHANGE**: 20250825

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CHARLES & COLVARD LTD
- **CENTRAL INDEX KEY:** 0001015155
- **STANDARD INDUSTRIAL CLASSIFICATION:** JEWELRY, SILVERWARE & PLATED WARE [3910]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 561928817
- **STATE OF INCORPORATION:** NC
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-23329
- **FILM NUMBER:** 251252513

**BUSINESS ADDRESS:**
- **STREET 1:** 170 SOUTHPORT DRIVE
- **CITY:** MORRISVILLE
- **STATE:** NC
- **ZIP:** 27560
- **BUSINESS PHONE:** 9194680399

**MAIL ADDRESS:**
- **STREET 1:** 170 SOUTHPORT DRIVE
- **CITY:** MORRISVILLE
- **STATE:** NC
- **ZIP:** 27560

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** C3 INC /NC/
- **DATE OF NAME CHANGE:** 19970829

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

Date of Report (Date of earliest event reported): **August 21, 2025**

**Charles & Colvard, Ltd.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**North Carolina** | &nbsp;&nbsp;**000-23329** | &nbsp;&nbsp;**56-1928817** |
| &nbsp;&nbsp; (State or other jurisdiction of<br> incorporation) | &nbsp;&nbsp; (Commission File<br> Number) | &nbsp;&nbsp; (I.R.S. Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;**170 Southport Drive** |  |
| &nbsp;&nbsp;**Morrisville**, **North Carolina** | &nbsp;&nbsp;**27560** |
| &nbsp;&nbsp;(Address of principal executive offices) | &nbsp;&nbsp;(Zip Code) |

---

**(919) 468-0399**

(Registrant's telephone number, including area code)

**N/A**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

---

| | |
|:---|:---|
| &nbsp;&nbsp;◻ | &nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| &nbsp;&nbsp;◻ | &nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| &nbsp;&nbsp;◻ | &nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| &nbsp;&nbsp;◻ | &nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |

---

Securities registered pursuant to Section 12(b) of the Act: None.

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company&nbsp;&nbsp;&nbsp;&nbsp; ◻

---

| | |
|:---|:---|
| **Item 3.02** | **Unregistered Sales of Equity Securities.** |

---

On August 21, 2025, Charles & Colvard Ltd. (the "Company") issued unregistered restricted

stock units as described below under Item 5.02, in reliance on the exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended.

---

| | |
|:---|:---|
| **Item 5.02** | **Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.** |

---

On August 21, 2025, in order to incentivize director, employee and key consultant performance and align their interests with the shareholders at this critical time in the Company's history, the Compensation Committee of the Board of Directors (the "Board") of Charles & Colvard, Ltd. approved the Charles & Colvard, Ltd. (the "Company") Fiscal 2026 Executive Incentive Program (the "FY2026 Program"), with effect as of July 1, 2025. The total number of Restricted Stock Units ("RSUs") to be authorized under the FY2026 Program is 1,338,000. The FY2026 Program supersedes and replaces all prior management incentive plans or programs for all periods commencing on or after July 1, 2025.

Each award granted under the FY2026 Program shall be expressed in "Units" and each Unit shall consist of, at grantee's election:

<u>Option A</u> – (1) a restricted stock award representing 65% of the Unit (the "Restricted Stock Component"), granted to the grantee, and (2) a cash bonus award representing 35% of the Unit (the "Cash Component"), to be paid to the grantee (for employees on the payroll date following the vesting date, and for consultants and non-employee Board members within one month of the vesting date); or

<u>Option B</u> – a restricted stock award representing 100% of the Unit granted to the grantee.

Grantees must elect Option A or Option B within one (1) week after the Company files its Form 10-K for FY2025, and grantees are only allowed to change their election for future tranches no less than three (3) months before such election change will take effect. The Company may reject such election changes in the event that the grantee is in possession of material nonpublic information at the time the request is made.

For the avoidance of doubt, the Cash Component of a Unit does not in any way represent an ownership interest in the Company, nor does it give an eligible grantee any rights as a shareholder of the Company.

An eligible grantee must remain in continuous service until the end of the applicable quarter for restrictions to fully lapse on the Restricted Stock Component and for the Cash Component (if any) to be paid.

Under the FY2026 Program, the Compensation Committee has granted James Tu, who serves as Executive Chairman of the Board, 480,000 Units, Ruten Bhanderi, who serves as Executive Director, 240,000 Units and independent directors Anne Butler and Neal Goldman 24,000 Units each, with all these grants vesting quarterly over one year. Additionally, under the FY2026 Program, the Compensation Committee granted the Chief Executive Officer 240,000 Units vesting quarterly over three years, the Chief Financial Officer 102,000 Units vesting quarterly over three years, and each Vice President 102,000 Units vesting quarterly over three years.

The foregoing description of the FY2026 Program does not purport to be complete and is qualified in its entirety by reference to the FY2026 Program, a copy of which is filed as Exhibit 10.1 to this Form 8-K and is incorporated herein by reference.

---

| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.** |

---

(d)&nbsp;&nbsp;&nbsp;&nbsp; Exhibits.

 

---

| | |
|:---|:---|
| **Exhibit No.** | **Description of Document**  |
| [10.1](tm2524338d1_ex10-1.htm) | [Charles & Colvard, Ltd. Fiscal 2026 Executive Incentive Program, effective July 1, 2025 +](tm2524338d1_ex10-1.htm) |
| 104 | Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL Document |
| + | Denotes management contract or compensatory plan or arrangement |

---

**SIGNATURE** 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **Charles & Colvard, Ltd.** | **Charles & Colvard, Ltd.** |
| August 25, 2025 | By: | /s/ Clint J. Pete |
|  |  | Clint J. Pete |
|  |  | Chief Financial Officer |

---

## Exhibit 10.1

**Exhibit 10.1**

**CHARLES & COLVARD, LTD.**

**FISCAL 2026 EXECUTIVE INCENTIVE PROGRAM**

**Adopted August 21, 2025**

The Charles & Colvard, Ltd. Fiscal 2026 Executive Incentive Program (the "Program") is a compensatory program established pursuant to the Charles & Colvard, Ltd. 2018 Equity Incentive Plan (the "2018 Plan") for the 2026 fiscal year (i.e., July 1, 2025 through June 30, 2026). The Compensation Committee (the "Committee") of the Board of Directors of Charles & Colvard, Ltd. (the "Company") is charged with administering the Program. The Program covers restricted stock awards and cash bonus awards for Company directors, personnel at the level of Vice President and above, and key consultants.

The Program supersedes and replaces all prior management incentive plans or programs for all periods commencing on or after July 1, 2025.

Each award granted under the FY2026 program shall be expressed in "Units" and each Unit shall consist of, at grantee's election:

<u>Option A</u> – (1) a restricted stock award representing 65% of the Unit (the "Restricted Stock Component"), to be granted to each eligible grantee upon approval of the FY2026 program, and (2) a cash bonus award representing 35% of the Unit (the "Cash Component"), to be paid to each eligible grantee (for employees on the payroll date following the vesting date/for consultants and non-employee Board members within one month of the vesting date); or

<u>Option B</u> – a restricted stock award representing 100% of the Unit (the "Restricted Stock Component"), to be granted to each eligible grantee upon approval of the FY2026 program.

Grantees must elect Option A or Option B within one (1) week of when the Company files its Form 10-K for FY2025, and grantees are only allowed to change their election for future tranches no less than three (3) months before such election change will take effect. The Company may reject such election changes in the event that the grantee is in possession of material nonpublic information at the time the request is made.

As the Company's common stock is not listed on any established stock exchange or a national market system, including without limitation, the New York Stock Exchange ("NYSE") or the Nasdaq Stock Market ("Nasdaq"), the fair market value of the RSUs for tax purposes is defined as: 1) $0.1478, or 2) the closing stock price at the end of the prior quarter just ended if the Company stock's average daily trading volume exceeds 100,000 shares during such previous quarter, or if the Company's stock is listed on an American national stock exchange such as NASDAQ or NYSE by the end of such quarter.

For example, if an award is expressed as 100,000 Units and all 100,000 Units vest and the eligible grantee has elected Option A (65%/35% split), the Restricted Stock Component of the 100,000 Units would equate to 65,000 fully vested shares of the Company's Common Stock. Assuming the Vesting FMV is $1.00, the Cash Component would equate to $35,000 (100,000 Units multiplied by 0.35 multiplied by $1.00).

For the avoidance of doubt, the Cash Component of a Unit does not represent any security interest in the Company, and does not in any way represent an ownership interest in the Company, nor does it give an eligible grantee any rights as a shareholder of the Company.

An eligible grantee must remain in continuous service until the end of the applicable quarter (the "Vesting Date") for restrictions to fully lapse on the Restricted Stock Component and for the Cash Component (if applicable) to be paid.

Under the FY2026 Program, the eligible grantees shall be eligible to receive the following Units:

---

| | | |
|:---|:---|:---|
| **Position** | **Units** | **Units** |
| Executive Chairman |  | 480000 |
| Executive Director |  | 240000 |
| Director |  | 24000 |
| Chief Executive Officer |  | 240000 |
| Chief Financial Officer and Chief Operating Officer |  | 102000 |
| Vice President(s) |  | 102000 |

---

**Source of Equity Compensation Units; Coordination with 2018 Plan**

The Restricted Stock Component and the Cash Component of all Units granted pursuant to the Program shall be issued under and pursuant to the 2018 Plan. All terms, conditions, and requirements of the 2018 Plan are expressly incorporated into the Program by reference.

The Restricted Stock Component of all Units granted pursuant to the Program shall be evidenced by an appropriate Restricted Stock Award Agreement in the form approved by the Committee for use under the 2018 Plan, and the Restricted Stock Component of each Unit hereunder shall be subject to the terms and conditions set forth in the applicable Restricted Stock Award Agreement and the 2018 Plan. To the extent there is any conflict or ambiguity between the terms of the FY2026 Program and the 2018 Plan or between the FY2026 Program and any applicable Restricted Stock Award Agreement, the terms of the 2018 Plan or the applicable Restricted Stock Award Agreement shall control.

**Amendment and Termination of the Program** 

The Program may be amended or terminated at any time by the Committee or the Company's Board of Directors. The Committee shall have unilateral authority to amend the Program and any Unit granted pursuant to the Program (without the recipient's consent, unless otherwise required under the 2018 Plan) to the extent necessary to comply with applicable laws, rules, or regulations or changes to applicable laws, rules, or regulations (including but not limited to Section 409A of the Internal Revenue Code of 1986, as amended, federal securities laws, or related regulations or other guidance).

**Withholding; Tax Matters** 

In accordance with the terms of the 2018 Plan and applicable Restricted Stock Award Agreements thereunder, the Company shall withhold, or shall require the recipient to pay the Company in cash, the amount of any local, state, federal, foreign, or other tax or other amount required by any governmental authority to be withheld and paid over by the Company to such authority for the account of the recipient. The Company makes no warranties or representations with respect to the tax consequences (including but not limited to income tax consequences) related to the transactions contemplated by the FY2026 Program and the 2018 Plan. A recipient should consult with his/her own attorney, accountant, and/or tax advisor regarding the decision to accept equity compensation awards under the Program and the consequences thereof. The Company has no responsibility to take or refrain from taking any actions in order to achieve a certain tax result for any recipient.