---
schema_version: "secwatch.filing_event.v1"
accession: "0001104659-25-118916"
form_type: "8-K"
ticker: null
cik: "0001015155"
company_name: "CHARLES & COLVARD LTD"
filed_at: "2025-12-05T23:59:59+00:00"
generated_at: "2026-05-16T14:10:42.697299+00:00"
event_type: "litigation"
sentiment: "negative"
materiality_score: 0.7
calibrated_materiality_score: 0.7
confidence: "high"
source: SEC EDGAR
---

# Charles & Colvard receives default notice on $2M note; court orders board election certification

## Summary
- Received default notice on $2M convertible secured note due Oct 3, 2025; company disputes validity, litigation pending, discussions with holder opened.
- North Carolina Business Court ordered certification of board election results, excluding shares from Note Conversion Agreement with Ethara Capital.
- Four directors elected (Franklin, Levin, Pham, Sems); tie for fifth seat leaves board vacancy.
- Director Neal Goldman resigned from board effective immediately; not due to disagreement with company.

## SEC filing metadata
- accession: 0001104659-25-118916
- form_type: 8-K
- cik: 0001015155
- company_name: CHARLES & COLVARD LTD
- filed_at: 2025-12-05T23:59:59+00:00
- event_type: litigation
- sentiment: negative
- materiality_score: 0.7
- calibrated_materiality_score: 0.7
- confidence: high
- sec_items: 2.04, 5.01, 5.07, 5.02
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1015155/000110465925118916/0001104659-25-118916-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1015155/000110465925118916/tm2532851d1_8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001104659-25-118916
- JSON: https://secwatch.observer/filing/0001104659-25-118916.json
- Plain text: https://secwatch.observer/filing/0001104659-25-118916.txt

## Source-grounded claims
- claim_id: 48163883c10e63e9f3dac86846e3d00f7824f27a
  claim: CHARLES & COLVARD LTD reported a default on convertible notes of $2.0 million with Ethara Capital LLC at increased from an annual rate equal to 5% to 9%, effective October 3, 2025 maturing October 3, 2025.
  evidence_excerpt: limited liability company. In connection with the Note Purchase Agreement, the Company issued a convertible secured note to the Holder for an aggregate total purchase price of $2.0 million, dated July 3, 2025 and due and payable on October 3, 2025. On November 25, 2025, the Company received a notice of default from the Holder asserting that an event of default by
  evidence_url: https://www.sec.gov/Archives/edgar/data/1015155/000110465925118916/0001104659-25-118916-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.