Clint J. Pete - Sep 5, 2022 Form 4 Insider Report for CHARLES & COLVARD LTD (CTHR)

Role: CFO
Signature: /s/ Clint J. Pete
Stock symbol: CTHR
Transactions as of: Sep 5, 2022
Transactions value $: -$26,579
Form type: 4
Date filed: 9/7/2022, 06:33 PM
Previous filing: Mar 2, 2022
Next filing: Nov 9, 2022

Transactions Table

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Ownership	Footnotes
transaction	CTHR	Common Stock	Disposed to Issuer	$0	-12.2K	-5.75%	$0.00	200K	Sep 5, 2022	Direct	F1
transaction	CTHR	Common Stock	Options Exercise		+19.7K	+9.85%		220K	Sep 5, 2022	Direct	F2
transaction	CTHR	Common Stock	Disposed to Issuer	-$26.6K	-19.7K	-8.97%	$1.35	200K	Sep 5, 2022	Direct
holding	CTHR	Common Stock						49.5K	Sep 5, 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		-19.7K	-100%		0	Sep 5, 2022	Common Stock	19.7K		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.