Charles & Colvard, Ltd. (NASDAQ:CTHR) Q2 2024 Earnings Call Transcript

Don O’Connell: Yes. So and again, when I was with Berkshire Hathaway’s Richline Group, I mean, we certainly looked at everything and we try to drive the business if a catastrophic event where the — what is liquid. The beauty of our business is the gold is commodity, so it is highly liquid. So with our inventory of $25 million, you look at the concentration of that inventory. Specifically, that inventory is comprised of finished jewelry at $17 million. If you took 60% of that inventory, you said it’s gold. That gold is at 14 carat, it’s very, very simple to come up with the economics on that. So, I mean, that’s basically where you’re at with that. And then you have the $11.1 million in cash. We have no debt right now in the business.

So, we still feel that we’re in a good place. We also have a $5 million credit line that’s available to us to kind of continue to grow and kind of ship and shape this business. So, a lot of other companies don’t have the commodity in gold in their finished products. Right. So that’s one advantage we have.

Paul Johnson: Appreciate it. Thank you.

Don O’Connell: Yes.

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

Don O’Connell: So, I want to thank everyone for their attention and continue to believe in the company. We look forward to sharing our progress and achievements with you in the future. Thank you.

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