Lazare Kaplan International, a Diamond Trading Company sightholder, said in its latest filing to the Securities and Exchange Commission that it was unsure whether it would be continuing operations. Lazare Kaplan was delisted from the NYSE Amex in June for being unable to file the financial statements required by law.

The diamond company's report to the SEC, dated August 31, 2010, said that it anticipated net sales of $152.4 million for 2010, a decreased of 20.8% from 2009.



Lazare Kaplan’s filing said that while the diamond industry was witnessing an economic recovery, the company remained affected by ongoing economic weakness. Ultimately, consumers' discretional spending ability would drive polished diamond and jewelry purchases, the filing observed, adding that a drop in consumer confidence in the past two years had caused lower retail diamond purchases and sales.

The company had not resolved the economic challenges in a timely manner, the filing continued, which had impact on its ability to conduct business.



The uncertainly surrounding collectability and recovery of certain assets as well as some credit lines had also prevented the company from filing financial statements for the 2009 fiscal year or the subsequent three fiscal quarters.



"The company is working expeditiously to resolve the material uncertainties and believe that once they are resolved, it will be in a position to file its financial statements for fiscal 2010 and all other periods described above and file its 2010 Form 10-K and all other corresponding reports, respectively, with the Securities and Exchange Commission," the filing stated.