EXHIBIT 99.2

Combined Financial StatementsYear Ended May 31, 2007 and thePeriod from December 1, 2005 (Inception) to May 31, 2006

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|Combined Financial StatementsYear Ended May 31, 2007 and thePeriod from December 1, 2005 (Inception) to
    May 31, 2006



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| |    |          | 
| | -- | -------- | 
| |    |          | 
| | Be | llataire
| |    |          | 
| |    |          | 
| |    |          | 
| |    | Contents
| |    |          | 
| |    |          | 
|

| |                                            |       | 
| | ------------------------------------------ | ----- | 
| | Independent auditors report               | 3     | 
|
| | Combined financial statements:             |       | 
| | Balance sheets                             | 4     | 
| | Statements of operations                   | 5     | 
| | Statements of partners deficit            | 6     | 
| | Statements of cash flows                   | 7     | 
| | Summary of significant accounting policies | 8-9   | 
| | Notes to combined financial statements     | 10-11 | 

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Independent Auditors Report

BellataireNew York, New York

We have audited the accompanying combined balance sheets of Bellataire as of May 31, 2007 and 2006 and the related combined statements of operations, partners deficit, and cash flows for the year ended May 31, 2007
and the period from December 1, 2005 (inception) to May 31, 2006. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Companys internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the combined financial statements referred to above present fairly, in all material respects, the financial position of Bellataire at May 31, 2007 and 2006, and the results of its operations and its cash
flows for the year ended May 31, 2007 and the period from December 1, 2005 (inception) to May 31, 2006 in conformity with accounting principles generally accepted in the United States.

/s/ BDO Seidman, LLP

August 27, 2007

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|                |          |          | 
|--------------- | -------- | -------- | 
|                |          |          | 
|                | Be       | llataire
|                |          |          | 
|                |          |          | 
|                |          |          | 
|Combined Balanc | e Sheets
|                |          |          | 
|                |          |          | 
|               

|                                                                 |  |   |            |   |   |            |  
|---------------------------------------------------------------- |  | - | ---------- | - | - | ---------- | -
|                                                                 |  |   |            |   |   |            |  
|May 31,                                                          |  |   | 2007       |   |   | 2006       |  
|Assets                                                           |  |   |            |   |   |            |  
|Current:                                                         |  |   |            |   |   |            |  
|Cash                                                             |  | $ | 632,456    |   | $ | 2,152,353  |  
|Accounts receivable                                              |  |   | 797,618    |   |   | 215,533    |  
|Inventories                                                      |  |   | 7,561,251  |   |   | 4,195,886  |  
|Prepaid expenses and other current assets                        |  |   | 119,650    |   |   | 136,325    |  
|                                                                 |  | $ | 9,110,975  |   | $ | 6,700,097  |  
|Liabilities and Partners Deficit                                |  |   |            |   |   |            |  
|Current liabilities:                                             |  |   |            |   |   |            |  
|Accounts payable, accrued expenses and other current liabilities |  | $ | 603,817    |   | $ | 776,860    |  
|Due to shareholders (net)                                        |  |   | 1,302,654  |   |   | 2,342,859  |  
|Total current liabilities                                        |  |   | 1,906,471  |   |   | 3,119,719  |  
|Loans payable to shareholders (Note 2)                           |  |   | 11,336,332 |   |   | 4,800,000  |  
|Total liabilities                                                |  |   | 13,242,803 |   |   | 7,919,719  |  
|Partners deficit                                                |  |   | (4,131,828 | ) |   | (1,219,622 | )
|                                                                 |  | $ | 9,110,975  |   | $ | 6,700,097  |  

|                                                                                                                                 | 
|-------------------------------------------------------------------------------------------------------------------------------- | 
|See accompanying
          summary of significant accounting policiesand notes to combined financial
                statements. | 



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|                              |          |          | 
|----------------------------- | -------- | -------- | 
|                              |          |          | 
|                              | Be       | llataire
|                              |          |          | 
|                              |          |          | 
|                              |          |          | 
|Combined
    Statements of Op | erations
|                              |          |          | 
|                              |          |          | 
|                             

|                                                      |  |   |              |   |   |                  |  
|----------------------------------------------------- |  | - | ------------ | - | - | ---------------- | -
|                                                      |  |   |              |   |   |                  |  
|                                                      |  |   |              |   |   | Period from      |  
|                                                      |  |   |              |   |   | December 1, 2005 |  
|                                                      |  |   | Year ended   |   |   | (inception) to   |  
|                                                      |  |   | May 31, 2007 |   |   | May 31, 2006     |  
|Net sales                                             |  | $ | 5,931,295    |   | $ | 448,675          |  
|Cost of goods sold (Note 4)                           |  |   | 5,702,238    |   |   | 323,562          |  
|Gross profit                                          |  |   | 229,057      |   |   | 125,113          |  
|Selling, general and administrative expenses (Note 4) |  |   | 3,141,263    |   |   | 1,444,735        |  
|Net loss                                              |  | $ | (2,912,206   | ) | $ | (1,319,622       | )

|                                                                                                                                 | 
|-------------------------------------------------------------------------------------------------------------------------------- | 
|See accompanying
          summary of significant accounting policiesand notes to combined financial
                statements. | 



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|                                   |           |          | 
|---------------------------------- | --------- | -------- | 
|                                   |           |          | 
|                                   | Be        | llataire
|                                   |           |          | 
|                                   |           |          | 
|                                   |           |          | 
|Combined
    Statements of Partner | sDeficit
|                                   |           |          | 
|                                   |           |          | 
|                                  

|                                                                                             |  |   |               |   |   |             |   |   |            |  
|-------------------------------------------------------------------------------------------- |  | - | ------------- | - | - | ----------- | - | - | ---------- | -
|                                                                                             | 
|Year ended May 31, 2007
    and the period from December 1, 2005 (inception) to May 31, 2006 | 
|                                                                                             |  |   |               |   |   |             |   |   |            |  
|                                                                                             |  |   | Lazare Kaplan |   |   | Diamond     |   |   |            |  
|                                                                                             |  |   | International |   |   | Innovations |   |   | Total      |  
|Balance, December 1, 2005                                                                    |  | $ | -             |   | $ | -           |   | $ | -          |  
|Capital contribution                                                                         |  |   | 50,000        |   |   | 50,000      |   |   | 100,000    |  
|Net loss                                                                                     |  |   | (659,811      | ) |   | (659,811    | ) |   | (1,319,622 | )
|Balance, May 31, 2006                                                                        |  |   | (609,811      | ) |   | (609,811    | ) |   | (1,219,622 | )
|Net loss                                                                                     |  |   | (1,456,103    | ) |   | (1,456,103  | ) |   | (2,912,206 | )
|Balance, May 31, 2007                                                                        |  | $ | (2,065,914    | ) | $ | (2,065,914  | ) | $ | (4,131,828 | )

|                                                                                                                 | 
|---------------------------------------------------------------------------------------------------------------- | 
|See accompanying summary of
          significant accounting policiesand notes to combined financial statements. | 



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|                                    |          |          | 
|----------------------------------- | -------- | -------- | 
|                                    |          |          | 
|                                    | Be       | llataire
|                                    |          |          | 
|                                    |          |          | 
|                                    |          |          | 
|Combined
          Statements of Ca | sh Flows
|                                    |          |          | 
|                                    |          |          | 
|                                   

|                                                                |  |   |              |   |   |                  |  
|--------------------------------------------------------------- |  | - | ------------ | - | - | ---------------- | -
|                                                                |  |   |              |   |   |                  |  
|                                                                |  |   |              |   |   | Period from      |  
|                                                                |  |   |              |   |   | December 1, 2005 |  
|                                                                |  |   | Year ended   |   |   | (inception) to   |  
|                                                                |  |   | May 31, 2007 |   |   | May 31, 2006     |  
|Cash flows from operating activities:                           |  |   |              |   |   |                  |  
|Net loss                                                        |  | $ | (2,912,206   | ) | $ | (1,319,622       | )
|Adjustments to reconcile net loss to net cash used in operating |  |   |              |   |   |                  |  
|activities:                                                     |  |   |              |   |   |                  |  
|(Increase) decrease in:                                         |  |   |              |   |   |                  |  
|Accounts receivable                                             |  |   | (582,085     | ) |   | (215,533         | )
|Inventories                                                     |  |   | (3,365,365   | ) |   | (4,195,886       | )
|Prepaid expenses and other assets                               |  |   | 16,675       |   |   | (136,325         | )
|Increase
 (decrease) in:                                        |  |   |              |   |   |                  |  
|Accounts payable, accrued expenses and other current            |  |   |              |   |   |                  |  
|liabilities                                                     |  |   | (173,043     | ) |   | 776,860          |  
|Due to shareholders (net)                                       |  |   | (1,040,205   | ) |   | 2,342,859        |  
|Total adjustments                                               |  |   | (5,144,023   | ) |   | (1,428,025       | )
|Net cash used in operating activities                           |  |   | (8,056,229   | ) |   | (2,747,647       | )
|Cash flows from financing activities:                           |  |   |              |   |   |                  |  
|Capital contributions                                           |  |   | -            |   |   | 100,000          |  
|Proceeds from notes payable to shareholders                     |  |   | 6,536,332    |   |   | 4,800,000        |  
|Net cash provided by financing activities                       |  |   | 6,536,332    |   |   | 4,900,000        |  
|Net increase (decrease) in cash                                 |  |   | (1,519,897   | ) |   | 2,152,353        |  
|Cash, beginning of period                                       |  |   | 2,152,353    |   |   | -                |  
|Cash, end of period                                             |  | $ | 632,456      |   | $ | 2,152,353        |  

|                                                                                                                                 | 
|-------------------------------------------------------------------------------------------------------------------------------- | 
|See accompanying
          summary of significant accounting policiesand notes to combined financial
                statements. | 



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|                                      |          |          | 
|------------------------------------- | -------- | -------- | 
|                                      |          |          | 
|                                      | Be       | llataire
|                                      |          |          | 
|                                      |          |          | 
|                                      |          |          | 
|Summary of
    Significant Accounting | Policies
|                                      |          |          | 
|                                      |          |          | 
|                                     

Description of Business and 
Basis of Combination


Bellataire (the Company) is engaged in the production and distribution of
loose diamonds and jewelry. Products include loose diamonds, rings, earrings, bracelets, necklaces and pendants that are sold throughout the United States, Belgium and Asia to jewelry retailers and wholesalers.
The corporate structure is a combination of Bellataire LLC which is the selling agent in the U.S.; Bellataire BVBA which is the selling agent in Belgium; and Bellataire International which sources and manufactures the diamonds. In addition to
selling diamonds owned by the Company, Bellataire LLC and Bellataire BVBA also sells diamonds owned by affiliates of the Company. It receives a 2% selling commission for selling these stones
 on their behalf. 
The combined financial statements include all subsidiaries; all
intercompany accounts and transactions have been eliminated in combination.


Inventories


Inventories consisting of loose diamonds, jewelry, labor and overhead associated with work-in-process and finished goods are valued at the lower of cost or market using
the FIFO method.


Income Taxes


The partners are required to report the Companys taxable income or loss on their respective income tax returns; accordingly, such income taxes are not reflected in
the financial statements.


Use of Estimates


The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates.


Revenue Recognition


The Company recognizes revenue when title and risk of ownership have passed to the buyer, the earnings process is complete and the sale price is fixed or
determinable.


Foreign Currency


All purchases of diamonds are denominated in U.S. dollars and all of the Companys foreign sales
 are denominated in U.S. dollars.


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|   |  |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 
|-- |  | ----------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|1. |  | Inventories |  | Inventories, including amounts on consignment
  with customers, are stated at the lower of cost or market. The determination
  of market value is highly subjective as it is based on the relative significance
  assigned to various attributes of a diamond, including carat weight, color,
  clarity and quality of cut. If actual market conditions are less favorable
  than those projected by management, inventory write-downs may be required. | 

| |                  |   |           |  |   |           | 
| | ---------------- | - | --------- |  | - | --------- | 
| | May
    31,      |   | 2007      |  |   | 2006      | 
| | Raw materials    | $ | -         |  | $ | 703,881   | 
| | Work-in-progress |   | 2,009,273 |  |   | 1,888,487 | 
| | Finished goods   |   | 2,953,451 |  |   | 1,317,942 | 
| | Consignment      |   | 2,598,527 |  |   | 285,576   | 
| | Total            | $ | 7,561,251 |  | $ | 4,195,886 | 

|   |  |                              |  |                                                                                                                                                                                                    | 
|-- |  | ---------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|2. |  | Notes Payable 
    Partners |  | Per the Funding Agreement
          (Exhibit C) of the Operating Agreement dated November 30, 2005, each
          Partner has agreed to a capital commitment equal to one-half of the
    sum of: | 

| |                                                                                                                                                                                                                                                                                                                                                                                            |  |                                                                                                                                                                                                                           | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
| | (1)                                                                                                                                                                                                                                                                                                                                                                                        |  | $3,000,000 in cash, plus                                                                                                                                                                                                  | 
| |                                                                                                                                                                                                                                                                                                                                                                                            |  |                                                                                                                                                                                                                           | 
| | (2)                                                                                                                                                                                                                                                                                                                                                                                        |  | the proceeds
          received by each Partner from Transition Period Diamonds, Transition
      Period Accounts Receivable, Pre-Transition Period Diamonds and Pre-Transition
      Period Accounts Receivable. | 
| |                                                                                                                                                                                                                                                                                                                                                                                            |  |                                                                                                                                                                                                                           | 
| | As of May 31,
          2007, the Company had $100,000 of capital contributions, $11,336,332 of loans
      from parents (in equal amounts) and $5,765,936 available in borrowings.
      The loans do not bear interest and are due on demand. The shareholders
      do not intend on calling the loans within one year and, therefore, the
    loans have been classified as long term. | 

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|   |  |                             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 
|-- |  | --------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|3. |  | Commitments and
Contingency |  | Operating Leases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 
|   |  |                             |  | The Company currently has no leases.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 
|   |  |                             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 
|4. |  | Related Party
Transactions  |  | The Company utilizes the services of certain employees
        for administrative services and occupies office space pursuant to various
        loan-out agreements with affiliates, which costs are included in selling,
        general and administrative expenses. Related fees are billed to the Company monthly
        and are based on actual costs incurred by the affiliates. The Company
        additionally utilizes manufacturing services from affiliates, which are reported
    as a component of cost of goods sold. | 
|   |  |                             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 
|   |  |                             |  | The total fees charged by
          the shareholders totaled $5,801,856
        and $2,896,886 for the year ended May 31, 2007 and the period from
    December 1, 2005 (inception) to May 31, 2006, respectively.                                                                                                                                                                                                                                                                                                                      | 

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