Clint J. Pete - 05 Sep 2022 Form 4 Insider Report for CHARLES & COLVARD LTD (CTHR)

Role: CFO
Signature: /s/ Clint J. Pete
Issuer symbol: CTHR
Transactions as of: 05 Sep 2022
Net transactions value: -$26,579
Form type: 4
Filing time: 07 Sep 2022, 18:33:11 UTC
Previous filing: 02 Mar 2022
Next filing: 09 Nov 2022
SEC: View on sec.gov

Transactions Table

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Ownership	Footnotes
transaction	CTHR	Common Stock	Disposed to Issuer	$0	-12,188	-5.7%	$0.000000	199,828	05 Sep 2022	Direct	F1
transaction	CTHR	Common Stock	Options Exercise		+19,688	+9.9%		219,516	05 Sep 2022	Direct	F2
transaction	CTHR	Common Stock	Disposed to Issuer	$26,579	-19,688	-9%	$1.35	199,828	05 Sep 2022	Direct
holding	CTHR	Common Stock						49,500	05 Sep 2022	By IRA

Derivative Securities (e.g., puts, calls, warrants, options, convertible securities)

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Underlying Class	Amount	Exercise Price	Ownership	Footnotes
transaction	CTHR	Phantom Stock	Options Exercise		-19,688	-100%		0	05 Sep 2022	Common Stock	19,688		Direct	F2

* An asterisk sign (*) next to the price indicates that the price is likely invalid.

Explanation of Responses:

Id	Content
F1	Represents cancellation of 12,188 shares of performance-based restricted stock originally granted on September 15, 2021. These shares were cancelled because certain performance goals associated with the grant were not achieved at the target level.
F2	Each share of phantom stock was settled in cash for $1.35 (the closing price of one share of common stock on 07/31/2022, the vesting date of the phantom stock pursuant to Charles & Colvard, Ltd's Fiscal 2022 Senior Management Equity Incentive Program (the "Plan")). An additional 6,563 shares of phantom stock were forfeited pursuant to the Plan because certain performance goals associated with the grant were not achieved at the target level.

Content

Represents cancellation of 12,188 shares of performance-based restricted stock originally granted on September 15, 2021. These shares were cancelled because certain performance goals associated with the grant were not achieved at the target level.

Each share of phantom stock was settled in cash for $1.35 (the closing price of one share of common stock on 07/31/2022, the vesting date of the phantom stock pursuant to Charles & Colvard, Ltd's Fiscal 2022 Senior Management Equity Incentive Program (the "Plan")). An additional 6,563 shares of phantom stock were forfeited pursuant to the Plan because certain performance goals associated with the grant were not achieved at the target level.