Lazare Kaplan International is once again not filing its financial results, because it is again unable to resolve a “material uncertainty,” the company announced in an April 16 SEC filing.
The New York diamond wholesaler and manufacturer hasn’t filed financial reports for nearly three years, which led to its stock’s delisting from NASDAQ.
The “material uncertainty” concerns the collectibility and recovery of certain assets, and LKI’s potential obligations under certain lines of credit and a guaranty.
LKI “is continuing to pursue final resolution of the remaining material uncertainties, of which it can give no assurance of success,” the filing added. “The inability of the company to timely resolve all of the material uncertainties has adversely impacted the company’s ability to transact business in the ordinary course to the same extent and in the same manner as it did previously. This includes, without limitation, the ability of the company to maintain and/or expand its operations.”
LKI did issue preliminary financial results for the last quarter. It anticipates net sales for the three months ended Feb. 28, 2011, will total $39.5 million, compared to net sales of $28.9 million last year. The increase reflects increases in both polished diamond sales and rough diamond trading, the company said.