Management Change/Compensation Form 8 K

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

In response to the impacts of significant gold pricing increases, lab grown diamond and moissanite pricing, inflation and a deeply discounted retail environment on the business of Charles & Colvard, Ltd. (the "Company"), on July 15, 2024, the Company entered into amendments (the "Amendments") to the employment agreements of each of Don O'Connell, the Company's President and Chief Executive Officer, and Clint J. Pete, the Company's Chief Financial Officer (collectively, the "Executives"), pursuant to which the Executives' base salaries will each be reduced by 10%, effective June 24, 2024 and continuing until such date as the Company's Board of Directors (the "Board") may determine. The Executives will not be entitled to any back pay for the period of time that their base salaries are reduced.

The foregoing description of the Amendments does not purport to be complete and is qualified in its entirety by reference to the Amendments, copies of which are filed as Exhibits 10.1 and 10.2 to this Form 8-K and are incorporated herein by reference.