House of Taylor to Review Past Audits

House of Taylor Jewelry, Inc. is reviewing past audited financial reports, the jewelry company said in a U.S. Securities and Exchange Commission filing on Tuesday.

The Los Angeles based company said on an April 1 SEC filing that it will be late in submitting its annual report for the year ended Dec. 31, 2007. The company did say that estimates its net sales are down 99 percent for the year.

Its SEC filing on Tuesday titled, “Non-Reliance on Previously Issued Financial Statements and Related Audit Report,” is an update of the April 1 statement.

In the filing, the company says, “The audit committee of the board of directors of House of Taylor Jewelry, Inc., upon the recommendation of management following a series of discussions with our independent accountants, is reviewing whether certain adjustments are required to previously issued audited financial statements.”

Preceding this statement the company announced on April 10, that one of its principal shareholders, Jack Abramov, resigned as chairman, president, and chief executive officer citing personal reasons. He was replaced by Lyle M. Rose, a jewelry industry veteran. Abramov agreed to stay with the company as a consultant for a six-month period.

In addition, the company said in the same announcement that Monty Abramov resigned as secretary and vice president, effective immediately.

In the most recent statement, the company said, “Although we intend to file an Annual Report on Form 10-KSB for the year ended December 31, 2007 as soon as practicable, we have not yet concluded our analysis of these issues and reviewed the final changes with our Audit Committee, our current auditors and our prior auditors.”

House of Taylor Jewelry, Inc. is an international jewelry company whose principal shareholders include Dame Elizabeth Taylor and Kathy Ireland, along with members of the Abramov family.