Lazare Kaplan Still Plagued by Material Uncertainties

Lazare Kaplan has only partially resolved the “material
uncertainties” that have kept it from reporting financial results since May
2009, according to a Jan. 14 company filing with the Securities and Exchange
Commission.

These uncertainties have “adversely impacted the company’s
ability to transact business in the ordinary course,” the filing added, and
could effect “its ability to maintain and/or expand its operations.”

The New York–based diamond manufacturer “is continuing to
pursue final resolution of the remaining Material Uncertainties, of which it can
give no assurance of success,” it noted.

LKI was able to resolve certain aspects of the
uncertainties, thanks to an Oct. 28 settlement
with its banks.

While the company did not report complete financial
reports, it did note that sales for the quarter ended Nov. 30 were $28.9
million, compared with $23 million the year before. However, sales for the six
months ended Nov. 30 were $62 million, compared with $97.2 million the prior
year.

The increase for the fourth quarter reflects jumps in
polished diamond sales and rough trading, the company said. However, the six-month decrease is due to a drop in rough trading volume offseting increased polished sales.