HOTJ Delays Financial Report Filing; Net Sales Down 99.3%

House of Taylor Jewelry (HOTJ) on Tuesday informed the United States Securities and Exchange Commission that its annual report for the year ended December 31 would not be submitted by the filing deadline.

The company said in its notice that the 10-k report could not be filed “without unreasonable effort or expense within the prescribed time period because management requires additional time to compile and verify the data required to be included in this report.“

The report also noted that HOTJ anticipates a “significant change in results of operations from the corresponding period for the last fiscal year [that] will be reflected by the earnings statement to be included in the subject report.”

Estimated unaudited results show a $12 million or 35.7 percent decrease in gross sales to $21.6 million. Net sales were $200,000, a decrease of $31.6 million or 99.3 percent, as a result of returns of $12.5 million and sales return allowance of $8.9 million.

The company expects a record net loss of $14.8 million, up from $8.4 million in 2006.