Charles & Colvard, Ltd. (NASDAQ:CTHR) Q3 2024 Earnings Call Transcript

So we know that if you just said, we wanted to raise capital or we wanted to get more liquid, we would sell off the finished jewelry first. Then the other thing I want to point out is on Charles & Colvard Direct is a real new initiative for us to be able to control our destiny. We started moving more toward direct to consumer but as of late we realized the fact that we’ve got over $8.2 million in loose jewels and loose gems. So that’s another avenue for us to raise capital or generate some more cash. So look to us to kind of build out and lean in on that and going after the trade for loose jewels, I know it’s been my messaging quarter-over-quarter to go more direct to consumer. That hasn’t wavered and that hasn’t changed at all. The difference is now we’re going to go Charles & Colvard Direct with this portal and be able to tap thousands of independent retailers.

So and those retailers will buy the loose jewels and therefore, we’ll be able to convert it to cash.

Operator: The next question will come from Ben Franklin with Riverstyx Capital. Please go ahead.

Ben Franklin: Hey, guys. I just have one question. Why draw on the credit facility considering the high cash balance?

Don O’Connell: Yes that’s a good question. So we’re making I mean we only drew just a $0.5 million. We felt that we wanted to draw down. I mean we haven’t used the credit facility since we’ve been in operation here for several years. So we want to make sure that the credit facility should we want to draw on is available and everything flows in and out the way it does. Certainly, the money factor there is very fractional, so to preserve cash sometimes it’s in and out. It really depends. So we just we just wanted to go ahead and draw on it. So we thought it was a good thing for us to do at the time.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Don O’Connell, President and Chief Executive Officer for any closing remarks. Please go ahead.

Don O’Connell: Thank you, Chuck. I just want to thank you for your support of Charles & Colvard. We look forward to continuing updates for our shareholders in future quarters. I want to thank everyone support and we’ll talk to you next quarter and we look forward to telling you some great things that are coming forward.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.