UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~August~~ 31November 30, 2015

¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 000-54990

Maiden Lane Jewelry, Ltd.

(Exact name of registrant as specified in its charter)

New York			46-0956015
(State or Other Jurisdiction			(I.R.S. Employer
of Incorporation or Organization)			Identification No.)

64 West 48th Street, Suite 1107, New York, New York 10036

(Address of Principal Executive Offices) (Zip Code)

(212) 840-8477

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer” and “large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ¨

Accelerated filer ¨

Non-accelerated filer ¨

Smaller Reporting Company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨o No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

As of ~~September~~December 3031, 2015, there were 10,494,428 shares of the registrant’s common stock outstanding.

MAIDEN LANE JEWELRY, LTD.

INDEX

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements		F-1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		1
Item 3. Quantitative and Qualitative Disclosures about Market Risk		56
Item 4. Controls and Procedures		6
PART II. OTHER INFORMATION		67
Item 1. Legal Proceedings		67
Item 1A. Risk Factors		67
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		67
Item 3. Defaults Upon Senior Securities		67
Item 4. [Removed and Reserved]		67
Item 5. Other Information		67
Item 6. Exhibits		7
Signatures		8
Certification of CEO Pursuant to Section 302
Certification of CFO Pursuant to Section 302
Certification of CEO Pursuant to U.S.C. Section 1350
Certification of CFO Pursuant to U.S.C. Section 1350

MAIDEN LANE JEWELRY, LTD.

CONDENSED BALANCE SHEET

	August 31,			May 31,
	November 30,			May 31,
	2015			2015
	(unaudited)
ASSETS
Current Assets:
Cash and Cash Equivalents	$	47,~~029~~142		$	41,731
Accounts Receivable, Net		45,~~549~~033,~~763~~773			3,991,158
Inventories		32,~~054~~002,~~861~~942			2,589,231
Prepaid Expenses		~~187~~197,~~683~~229			187,230
Deferred Taxes		~~137~~160,~~600~~100			122,300
Total Current Assets		7,~~933~~401,~~936~~186			6,931,650
Property and Equipment, Net		6884,~~310~~466			47,277
Trademarks		13,407			—
Security Deposits		2,000			2,000
Total Assets	$	87,~~004~~501,~~246~~059		$	6,980,927
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts Payable	$	23,~~929~~312,~~852~~824		$	2,009,072
Accrued Expenses		7062,~~451~~072			30,220
Loans Payable - Factor		2,~~708~~366,~~852~~963			2,242,399
Loans Payable – Related Parties, net of discount of $12,935 at August 31, 2015 and $4,825 at May 31, 2015		526,397			797,007
Loans Payable – Related Parties, net of discount of $4,487 at November 30, 2015 and $4,825 at May 31, 2015		289,497			797,007
Convertible Note Payable – Related Party		~~74,000~~-			74,000
Notes Payable, net of debt discount of $93,388 at November 30, 2015		336,612			-
Income Taxes Payable		39,105			48,687
Total Current Liabilities		6,~~348~~407,~~657~~073			5,201,385
Long-Term Debt:
Notes Payable, net of debt discount of $118,852 at August 31, 2015 and $141,804 at May 31, 2015		311,148			288,196
Notes Payable, net of debt discount of $141,804 at May 31, 2015		-			288,196
Notes Payable - Related Parties		600,000			600,000
Total Liabilities		7,259,805			6,089,581
Convertible Note Payable - Related Party		74,000			-
Total Liabilities		7,081,073			6,089,581
Commitments and Contingencies
Stockholders’ Equity:
Preferred Stock, $.0001 par value; 10,000,000 shares authorized, none issued and outstanding at August 31, 2015 and May 31, 2015		—			—
Preferred Stock, $.0001 par value; 10,000,000 shares authorized, none issued and outstanding at November 30, 2015 and May 31, 2015		—			—
Common Stock, $.0001 par value; 50,000,000 shares authorized, 10,494,428 shares issued and outstanding at August 31, 2015 and May 31, 2015		1,049			1,049
Common Stock, $.0001 par value; 50,000,000 shares authorized, 10,494,428 shares issued and outstanding at November 30, 2015 and May 31, 2015		1,049			1,049
Additional Paid-In Capital		1,~~214~~210,~~235~~296			1,205,417
Accumulated Deficit		(~~470~~791,~~843~~359	)		(315,120	)
Total Stockholders’ Equity		~~744~~419,~~441~~986			891,346
Total Liabilities and Stockholders’ Equity	$	87,~~004~~501,~~246~~059		$	6,980,927

The accompanying notes are an integral part of these financial statements.

F-1

MAIDEN LANE JEWELRY, LTD.

CONDENSED STATEMENT OF OPERATIONS

(Unaudited)

	Three Months Ended			Three Months Ended
	Three Months Ended November 30,						Six Months Ended November 30,
	August 31, 2015			August 31, 2014
	2015			2014			2015			2014
Sales - Net	$	21,~~397~~947,~~825~~370		$	12,~~829~~735,~~784~~248		$	4,345,195		$	4,565,032
Costs and Expenses:
Cost of Sales		1,~~950~~709,~~315~~326			12,~~511~~030,~~876~~018			3,659,642			3,541,894
Officer’s Compensation		~~116~~145,~~799~~866			91137,~~370~~151			262,664			228,521
Professional and Consulting Fees		~~140~~66,~~180~~031			~~168~~190,~~002~~593			206,211			358,595
Selling, General and Administrative Expenses		~~273~~248,~~782~~104			~~153~~166,~~331~~937			521,886			320,268
Total Costs and Expenses		2,481,076			1,924,579
Provision for Bad Debts		7,559			2,779			7,559			2,779
(Loss) from Operations		(83,251	)		(94,795	)
Total Costs and Expenses		2,176,886			2,527,478			4,657,962			4,452,057
Other Income (Expense):
Income (Loss) from Operations		(229,516	)		207,770			(312,767	)		112,975
Interest Expense – Related Party		(746	)		(738	)
Other Income (Expense):
Interest Expense – Related Party Loans Payable		(6,707	)		—
Interest Expense – Related Party		(746	)		(746	)		(1,492	)		(1,484	)
Interest Expense – Notes Payable		(11,825	)		(1,153	)
Interest Expense – Related Party Loans Payable		(10,507	)		—	)		(17,214	)		—
Interest Expense – Accounts Receivable Financings		(45,542	)		(28,281	)
Interest Expense – Notes Payable		(11,825	)		(11,759	)		(23,650	)		(12,912	)
Amortization of Debt Discount		(22,952	)		(1,689	)
Interest Expense – Accounts Receivable Financings		(64,958	)		(37,238	)		(110,500	)		(65,519	)
Total Other Income and (Expenses)		(87,772	)		(31,861	)
Amortization of Debt Discount		(25,464	)		(16,144	)		(48,416	)		(17,833	)
(Loss) before Income Tax (Benefit)		(171,023	)		(126,656	)
Total Other Income and (Expenses)		(113,500	)		(65,887	)		(201,272	)		(97,748	)
Income Tax (Benefit)		(15,300	)		(42,000	)
Income (Loss) before Income Tax (Benefit)		(343,016	)		141,883			(514,039	)		15,227
Net (Loss)	$	(155,723	)	$	(84,656	)
Income Tax (Benefit)		(22,500	)		37,500			(37,800	)		(4,500	)
(Loss) Per Common Share – Basic and Diluted	$	(0.01	)	$	(0.01	)
Net Income (Loss)	$	(320,516	)	$	104,383		$	(476,239	)	$	19,727
Basic and Diluted Weighted Average Shares		10,494,428			10,469,477
Income (Loss) Per Common Share – Basic	$	(0.03	)	$	0.01		$	(0.05	)	$	0.00
Basic Weighted Average Shares		10,494,428			10,476,854			10,494,428			10,473,145
Income (Loss) Per Common Share – Diluted	$	(0.03	)	$	0.01		$	(0.05	)	$	0.00
Diluted Weighted Average Shares		10,494,428			10,513,854			10,494,428			10,510,145

The accompanying notes are an integral part of these financial statements.

F-2

MAIDEN LANE JEWELRY, LTD.

CONDENSED STATEMENT OF STOCKHOLDERS’ EQUITY

FOR THE ~~THREE~~SIX MONTHS ENDED ~~AUGUST~~NOVEMBER 3130, 2015

(Unaudited)

					Additional
	Common Stock				Paid-In		Retained
	Shares		Amount		Capital		Earnings			Total
Balance, May 31, 2015		10,494,428	$	1,049	$	1,205,417	$	(315,120	)	$	891,346
Debt Discount on Notes Payable		—		—		84,~~818~~879		—			84,~~818~~879
Net Loss for the three months ended August 31, 2015		—		—		—		(155,723	)		(155,723	)
Net Loss for the six months ended November 30, 2015		—		—		—		(476,239	)		(476,239	)
Balance, August 31, 2015		10,476,854	$	1,049	$	1,214,235	$	(470,843	)	$	744,441
Balance, November 30, 2015		10,476,854	$	1,049	$	1,210,296	$	(791,359	)	$	419,986

The accompanying notes are an integral part of these financial statements.

F-3

MAIDEN LANE JEWELRY, LTD.

CONDENSED STATEMENT OF CASH FLOWS

(Unaudited)

	Three Months Ended			Three Months Ended
	Six Months Ended			Six Months Ended
	August 31,			August 31,
	November 30,			November 30,
	2015			2014
Cash Flows from Operating Activities:
Net (Loss)	$	(155,723	)	$	(84,656	)
Net Income (Loss)	$	(476,239	)	$	19,727
Adjustments to Reconcile Net (Loss) to Net Cash (Used) in Operating Activities:
Depreciation		16,~~314~~577			12,~~091~~270
Amortization of Note Discount		2353,~~661~~630			117,~~689~~833
Deferred Taxes		(1537,~~300~~800	)		(4277,000	)
Reserve for Doubtful Accounts and Sales Returns and Allowances		2446,~~865~~586			92106,~~708~~726
Changes in Assets and Liabilities:
(Increase) in Accounts Receivable		(~~583~~1,~~471~~089,203	)		(~~885~~2,~~700~~207,762	)
(Increase) in Other Receivables		—			(~~418~~464,~~489~~529	)
(Increase) Decrease in Inventories		(465,631	)		269,178
Decrease in Inventories		586,289			26,545
(Increase) Decrease in Prepaid Expenses		(452	)		26,876
(Increase) in Prepaid Expenses		(9,999	)		(38,360	)
Increase (Decrease) in Accounts Payable		920,780			(106,706	)
Increase in Accounts Payable		1,303,752			1,074,381
Increase (Decrease) in Accrued Expenses		4031,~~231~~852			(611,~~512~~374	)
(Decrease) in Income Taxes Payable		(9,582	)		—
Increase (Decrease) in Income Taxes Payable		(9,582	)		67,123
Net Cash (Used) in Operating Activities		(219,308	)		(1,152,521	)
Net Cash Provided by (Used) in Operating Activities		405,863			(1,484,420	)
Cash Flows from Investing Activities:
Capital Expenditures		(2243,~~348~~766	)		(57,~~444~~032	)
Net Cash (Used) In Investing Activities		(22,348	)		(5,444	)
Purchase of Trademarks		(13,407	)		—
Net Cash Used by In Investing Activities		(57,173	)		(7,032	)
Cash Flows from Financing Activities:
Proceeds of Note Issuance		—			~~400~~430,000
Proceeds of Loans Payable – Related Parties		~~464~~621,~~000~~655			~~306~~636,000
Payments of Loans Payable – Related Parties		(~~726~~1,129,500	)		(~~106~~461,000	)
Proceeds from Loans Payable – Factor		23,~~340~~437,~~906~~497			13,~~674~~316,~~632~~799
Repayments to Loans Payable – Factor		(13,~~874~~312,~~451~~931	)		(12,~~042~~443,~~135~~836	)
Net Cash Provided by In Financing Activities		203,955			1,232,497
Net Cash Provided by (Used) In Financing Activities		(383,279	)		1,477,963
Increase (Decrease) in Cash and Cash Equivalents		(37,701	)		74,532
(Decrease) in Cash and Cash Equivalents		(34,589	)		(13,489	)
Cash and Cash Equivalents – Beginning of Period		41,731			15,269
Cash and Cash Equivalents – End of Period	$	47,~~029~~142		$	891,~~801~~780
Supplemental Disclosure of Cash Flow Information:
Interest Paid	$	58204,~~856~~962		$	2662,~~255~~256
Income Taxes Paid	$	9,582		$	—
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Debt Discount on Notes Payable	$	—		$	~~184~~198,~~715~~557
Debt Discount on Loans Payable – Related Parties	$	84,~~817~~879		$	—
Issuance of 10,604 shares of Common Stock as consideration for payment of obligation to issue common stock	$	—		$	32,871

The accompanying notes are an integral part of these financial statements.

F-4

MAIDEN LANE JEWELERY, LTD.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

NOTE 1 - Summary of Significant Accounting Policies

Organization and Basis of Presentation

Maiden Lane Jewelry, Ltd., formerly Romantique Ltd., (“the Company”) was incorporated on September 6, 2012 under the laws of the State of New York. The Company is a wholesaler and manufacturer of jewelry including pendants, bracelets and earrings. The Company began operations on October 1, 2012 by selling fashion rings, pendants, earrings and bracelets to independent retailers. In December 2012, the Company commenced a line of bridal (engagement) rings, featuring both settings and diamonds. In February 2014 the Company began the sale of bridal engagement rings featuring uniquely cut diamonds which in May 2014 was branded as an Aspiri^TM cut diamond. The Company expanded its Aspiri cut diamond line in November 2014 to include pendants and earrings. Beginning in February 2015, the Company decided to phase out its line of fashion jewelry in order to focus on its Aspiri cut diamond engagement rings, pendants and jewelry.

In the opinion of the Company’s management, the accompanying unaudited condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the information set forth therein. These financial statements are condensed and therefore do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. These condensed financial statements should be read in conjunction with the Company’s May 31, 2015 audited financial statements and notes included in Form 10-K filed on September 11, 2015.

Results of operations for interim periods are not necessarily indicative of the results of operations for a full year.

Cash and Cash Equivalents

The Company considers all highly-liquid investments purchased with a maturity of three months or less to be cash equivalents. As of ~~August~~November 3130, 2015 and May 31, 2015, the Company did not have any cash equivalents.

Inventories

Raw materials are stated at the lower of cost or market, with cost determined by specific identification for unique items (such as diamond stones, each with a particular carat weight, color, clarity and cut) and using the first-in, first-out method for generic items or styles (certain semi-mounts and fashion jewelry). Finished goods the Company fabricates are stated at the lower of cost or market, with cost determined by specific identification for each component making up the item plus direct labor and other fees (primarily diamond certification).

Property and Equipment

Property and equipment is carried at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the related assets, which is generally five years.

Revenue Recognition

For revenue from product sales, the Company recognizes revenue in accordance with Staff Accounting Bulletin No. 104, “Revenue Recognition” (SAB No. 104), which superseded Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements” (SAB No. 101). SAB No. 104 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgment regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowance, and other adjustments are provided for in the same period the related sales are recorded. Provision for sales returns and allowances that were netted against sales amounted to $25267,000 and $9343,000 for the ~~three~~six months ended ~~August~~November 3130, 2015 and 2014, respectively.

Concentration of Credit Risks

The Company primarily sells its products to retail jewelers focused on mid-to-high end consumers. Customers typically receive payment terms of ratable monthly payments over 90 to 120 days with exceptions based on credit quality, seasonality or other terms and conditions. As a result, the Company is exposed to credit risk on its accounts receivable. The Company generally seeks to mitigate such risk by performing credit checks through jeweler trade associations it is a member of, by attending trade shows which selectively invite retailer attendees based on their credit worthiness and by checking references with other jewelers in the industry.

F-5

MAIDEN LANE JEWELERY, LTD.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents. The Company may maintain cash balances at financial institutions which exceed the current Federal Deposit Insurance Corporation (“FDIC”) limit of $250,000 during the year.

Sales

The Company’s sales are comprised of primarily three major products: Aspiri cut jewelry (primarily engagement rings), Complete Rings (not Aspiri) and Fashion Jewelry. The Company may also on occasion sell loose stone jewelry. A breakdown of gross sales for the three and six months ended ~~August 31~~November 30, 2015 and 2014, respectively:

	Three Months Ended August 31,
	Three Months Ended November 30,						Six Months Ended November 30,
	2015			2014			2015			2014
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
AspiriTM Cut Jewelry		4156	%		3450	%		49	%		43	%
Complete Rings (not Aspiri)		3021			4728			25			36
Fashion Jewelry & Other		2923			1922			26			21

In February 2014 the Company began the sale of Aspiri bridal engagement rings. The first full quarter of Aspiri sales occurred during the three months ended May 31, 2104; at this initial roll-out of the Aspiri product line, there was less of a focus on the sales of non-Aspiri products. At the end of February 2015, the Company decided to phase out our line of fashion jewelry in order to focus on its Aspiri cut diamond engagement rings, pendants and jewelry.

The Company expanded its Aspiri cut diamond line in November 2014 to include pendants and earrings. A breakdown of Aspiri jewelry to gross sales for the three ~~months~~and ~~ended~~six months ~~August~~ended 31November 30, 2015 and 2014, respectively:

	Three Months Ended August 31,
	Three Months Ended November 30,						Six Months Ended November 30,
	2015			2014			2015			2014
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Aspiri Engagement Rings		38	%		34	%
AspiriTM Engagement Rings		50	%		46	%		45	%		41	%
Aspiri Engagement Pendants		2			0
AspiriTM Pendants		4			2			3			1
Aspiri Engagement Earrings		1			0
AspiriTM Earrings		2			2			1			1

Advertising Costs

Advertising and show costs are charged to operations when incurred. Advertising costs during the ~~three~~six months ended ~~August~~November 3130, 2015 and ~~August 31,~~ 2014 were $81113,000 and $49101,000, respectively.

Deferred Income Taxes

The Company accounts for deferred income taxes using the asset and liability method, the objective of which is to establish deferred tax assets and liabilities for the temporary differences between the financial reporting and the tax bases of the Company’s assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. A valuation allowance related to deferred tax assets is recorded when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

Net Income (Loss) Per Share

Basic loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the periods presented. Diluted loss per common share is computed by dividing net loss by the weighted average number of dilutive common share equivalents and convertible securities then outstanding. Diluted loss per common share is based on the treasury stock method and includes the effect from potential issuance of common stock such as shares issuable pursuant to the exercise of warrants and conversion of debentures. Potentially dilutive securities as of ~~August~~November 3130, 2015 and 2014 consisted of 37,000 common shares from convertible debentures and 122,550 common shares from outstanding warrants. The 122,550 warrants were issued in connection with $430,000 of unsecured notes at an exercise price of $3.50 per warrant into one share of common stock. ~~Potentially~~For ~~dilutive~~the ~~securities~~three asand ofsix ~~August~~months ~~31,~~ended ~~2104~~November ~~consisted~~30, ~~of 37~~2015,~~000 common~~ ~~shares~~the ~~from~~dilutive ~~convertible debentures~~ and ~~114,000~~basic ~~common~~weighted average shares ~~from~~were ~~outstanding~~the ~~warrants. The 114~~same,~~000~~ ~~warrants were issued~~as inpotentially ~~connection~~dilutive ~~with~~shares ~~$400,000~~were ofanti-dilutive. ~~unsecured~~For ~~notes~~the atthree anmonths ~~exercise~~ended ~~price~~November of30, ~~$3.50~~2015 ~~per~~and ~~warrant~~2014, ~~into~~basic ~~one~~weighted ~~share~~average shares ofwere ~~common~~10,494,428 ~~stock.~~and ~~For each period~~10,476,854, ~~the~~respectively ~~dilutive~~ and ~~basic~~for ~~weighted~~the ~~average~~six ~~shares~~months ~~were~~ended ~~the~~November ~~same~~30, as2014, diluted ~~potentially~~weighted ~~dilutive~~ average shares were ~~anti-dilutive~~10,510,145.

F-6

The following provides a reconciliation of the shares used in calculating the per share amounts for the periods presented:

	Three Months Ended November 30,						Six Months Ended November 30,
	2015			2014			2015			2014
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Numerator:
Net Income (Loss)	$	(321,053	)	$	104,383		$	(476,239	)	$	19,727
Interest on Convertible Notes		746			746			1,492			1,484
Net Income (Loss)	$	(320,307	)	$	105,129		$	(474,747	)	$	21,211

Denominator:
Basic weighted-average shares		10,494,428			10,476,854			10,494,428			10,473,145
Effective of dilutive securities:
Warrants¹		—	²		—	²		—	²		—	²
Convertible Debt³		—	⁴		37,000			—	⁴		37,000
Diluted weighted-average shares		10,494,428			10,513,854			10,494,428			10,510,145

Per Share Income (Loss):
Basic	$	(0.03	)	$	0.01		$	(0.05	)	$	0.00
Diluted	$	(0.03	)	$	0.01		$	(0.05	)	$	0.00

There are 122,550 warrants issued in connection with 430,000 of unsecured notes at an exercise price of $3.50 per warrant into one share of common stock.

Warrants for the three and six months ended November 30, 2015 and 2014 are not included in the computation of diluted weighted average shares as they are not dilutive under the treasury stock method of accounting.

Convertible debt is convertible into 37,000 shares of common stock.

Convertible debt for the three months ended November 30, 2015 is not included in the computation of diluted weighted average shares as such inclusion would be anti-dilutive.

F-7

MAIDEN LANE JEWELERY, LTD.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

Accounting Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenses during the reported period. Actual results could differ from those estimates. Management uses its best judgment in valuing these estimates, and may, as warranted, solicit external professional advice and other assumptions believed to be reasonable.

Fair Value Measurements

The authoritative guidance for fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or the most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. The guidance describes a fair value hierarchy based on the levels of inputs, or which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following:

Level 1: Quoted prices in active markets for identical assets or liabilities.

Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active, or other inputs that are observable or corroborated by observable market data or substantially the full term of the assets or liabilities.

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the value of the assets or liabilities.

The Company's financial instruments include cash and cash equivalents, accounts receivable, accounts payable and loans and notes payable. These items are determined to be a Level 1 fair value measurement.

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and loans payable approximates fair value because of the short maturity of these instruments. The recorded value of long-term debt approximates its fair value as the terms and rates approximate market rates.

Recent Accounting Pronouncements

Management does not believe there would have been a material effect on the accompanying financial statements had any recently issued, but not yet effective, accounting standards been adopted in the current period.

NOTE 2 - Inventories

Inventories consist of the following:

	August 31, 2015		May 31, 2015
	November 30, 2015		May 31, 2015
	(unaudited)
Raw Materials	$	1,~~118~~090,~~937~~088	$	775,312
Finished Goods		1912,~~935,924~~854		1,813,919
Total Inventory	$	32,~~054~~002,~~861~~942	$	2,589,231

Inventories are pledged as security for the Company’s Accounts Receivable Financing Agreement (see Note 9).

F-78

MAIDEN LANE JEWELERY, LTD.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

NOTE 3 - Property and Equipment

Property and equipment consists of the following:

	August 31, 2015		May 31, 2015
	November 30, 2015		May 31, 2015
	(unaudited)
Office Equipment	$	16,349	$	16,349
Computers	$	4,~~808~~778	$	4,~~808~~778
Capitalized Software		5778,~~528~~976		35,~~181~~211
		78,685		56,338
		100,103		56,338
Less: Accumulated Depreciation		1015,~~375~~637		9,061
	$	6884,~~310~~466	$	47,277

The Company is capitalizing new software related to inventory management and production. The cost of this software includes a base package cost plus current customization. ~~Once~~The ~~the~~ software is was fully implemented September 1, 2015, and the Company ~~will~~depreciates ~~depreciate~~ the total cost of the software over five years. Depreciation expense was approximately $16,~~300~~600 and $12,~~100~~300 for the ~~three~~six months ended ~~August~~November 3130, 2014 and ~~August~~November 3130, 2014, respectively.

NOTE 4 - Convertible Note Payable – Related Party

Convertible note payable to the Company’s president is summarized as follows:

	August 31, 2014		May 31, 2015
	November 30, 2015		May 31, 2015
	(unaudited)
Note Payable, bearing interest at 4% per annum, and due December 31, 2015. The note is Convertible into shares of the Company’s Common stock at a conversion rate of $2 per share, subject to adjustment upon the occurrence of certain events including stock dividends, stock split or combinations and reclassifications.	$	74,000	$	74,000
Note Payable, bearing interest at 4% per annum, and due June 30, 2017 (original maturity of the note being December 31, 2015 and, as per the terms of the note, extended at the Company’s election for an additional 18 months). The note is Convertible into shares of the Company’s Common stock at a conversion rate of $2 per share, subject to adjustment upon the occurrence of certain events including stock dividends, stock split or combinations and reclassifications.	$	74,000	$	74,000

NOTE 5 - Loans Payable – Related Parties

Loans payable to related parties is summarized as follows:

	August 31, 2015			May 31, 2015
	November 30, 2015			May 31, 2015
	(unaudited)
Loans payable to related parties include primarily loans payable to the Company’s President and CFO. The loans are payable on demand and non-interest bearing. Interest has been imputed at 3.25% per annum and the Company has recorded a debt discount of $25,539 against Additional Paid-In Capital. This discount is being amortized over two years.	$	539,332		$	801,832
Loans payable to related parties include amounts payable to the Company’s President and CFO of $144,000 and $402,000 at November 30, 2015 and May 31, 2015, respectively, and $149,000 and $400,000 to other related parties at November 30, 2015 and May 31, 2015, respectively. The loans are payable on demand and non-interest bearing. Interest has been imputed at 3.25% per annum and the Company has recorded a debt discount of $25,539 against Additional Paid-In Capital. This discount is being amortized over two years.	$	293,987		$	801,832
Less: Unamortized discount		(124,~~935~~490	)		(4,825	)
Loans Payable – Related Parties, Net	$	~~526~~289,~~397~~497		$	797,007

A portion of this loan payable to the Company’s President and CFO in the amount of $~~210~~219,000 is subordinated to the factor.

NOTE 6 - Notes Payable – Related Parties

Notes payable to related parties is summarized as follows:

	August 31, 2015		May 31, 2015
	November 30, 2015		May 31, 2015
	(unaudited)
Notes payable to the Company’s President and CFO bears interest at 4% per annum and is due December 31, 2016. Interest is payable quarterly and note is subordinated to the Factor.	$	600,000	$	600,000

NOTE 7 - Unsecured Notes Payable

On August 18, 2014, August 25, 2014 and September 15, 2014 the Company issued $250,000, $150,000 and $30,000, respectively, of unsecured, subordinated notes bearing 11% interest with 285 detachable and freely transferable warrants per $1,000 face value Note. The notes are due on the second anniversary of their issue date with warrants exercisable within ten years from their issue date at an exercise price of $3.50. The $150,000 of notes issued on August 25, 2014 are to an entity controlled by the brother of the Company’s president.

~~Pursuant to ASC 470~~F-20, the Company recorded the value of the warrants using the Black-Scholes method, which was determined to be approximately $369,000. A portion of the debt proceeds was allocated to the warrants as debt discount using the relative fair value method, which approximated $199,000. As the warrants contain fixed settlement provisions and the exercise price cannot be adjusted, the Company recorded the fair value of the warrants as additional paid in capital with a corresponding debt discount which will be amortized over the two-year term of the notes using the interest method. For the three months ended August 31, 2015 and 2014, the Company recognized approximately $23,000 and $1,700, respectively, in amortization expense relating to these warrants.9

F-8

MAIDEN LANE JEWELERY, LTD.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

	August 31, 2015			May 31, 2015
	(unaudited)
Notes Payable, Par	$	430,000		$	430,000
Initial Debt Discount		(198,557	)		(198,557	)
Accumulated Amortization		79,705			56,753
Notes Payable, Net	$	311,148		$	288,196

Pursuant to ASC 470-20, the Company recorded the value of the warrants using the Black-Scholes method, which was determined to be approximately $369,000. A portion of the debt proceeds was allocated to the warrants as debt discount using the relative fair value method, which approximated $199,000. As the warrants contain fixed settlement provisions and the exercise price cannot be adjusted, the Company recorded the fair value of the warrants as additional paid in capital with a corresponding debt discount which will be amortized over the two-year term of the notes using the interest method. For the six months ended November 30, 2015 and 2014, the Company recognized approximately $48,000 and $18,000, respectively, in amortization expense relating to these warrants.

	November 30, 2015			May 31, 2015
	(unaudited)
Notes Payable, Par	$	430,000		$	430,000
Initial Debt Discount		(198,557	)		(198,557	)
Accumulated Amortization		105,169			56,753
Notes Payable, Net	$	336,612		$	288,196

The fair value of the warrants on the issuance date was calculated using the Black-Scholes method with the following weighted average assumptions:

Dividend yield		0.00	%
Volatility		310.78	%
Risk-free interest rate		2.40	%
Expected life (months)		120
Grant date price per share	$	3.01
Warrants issued		122,550
Aggregate grant date fair value	$	369,000

NOTE 8 - Financing Agreement

On September 30, 2013 the Company entered into an Account Receivable Financing Agreement with Rosenthal & Rosenthal, Inc. (“Rosenthal” or the “Factor”) pursuant to which Rosenthal shall provide the Company with a line of credit up to $1,000,000. On October 6, 2014, this Accounts Receivable Financing Agreement was amended to increase the line of credit up to a maximum of $2,000,000. Loans made under the Accounts Receivable Financing Agreement bear interest at prime rate plus 3.5% (for an effective average rate of 7.5% for the three months ended August 31, 2015 and 2014) and are subject to certain financial covenants. As security for these loans, Rosenthal has placed liens on the Company’s accounts receivable, inventories, and all other assets. In addition, the loans have been personally guaranteed by Yitzchok Gurary, and his parents, Mordechai Gurary and Leah Gurary. In addition, the Company has granted Rosenthal a Landlord Subordination agreement.

The Accounts Receivable Financing Agreement calls for the subordination of certain of the Company’s debt as follows:

Accounts Payable – Classique Creations, LLC		$	500,000
Demand Loans Payable – Yitzchok Gurary		$	~~210~~219,000

In connection with the Accounts Receivable Finance Agreement, the Company has borrowed approximately $2.73 million net as of ~~August~~November 3130, 2015. Total draws and ~~repayments~~ repayments for the ~~three~~six months ended ~~August~~November 3130, 2015 totaled approximately $2.3.4 million and $13.93 million, respectively. The Accounts ~~Receivable~~ Receivable Financing Agreement continues in full force and effect until September 30, ~~2015~~2016 and automatically from year to year thereafter, unless sooner terminated.

On March 9, 2015, this Accounts Receivable Financing Agreement was amended to increase the line of credit up to a maximum of $2,500,000. On May 7, 2015, the Accounts Receivable Financing Agreement was amended to increase the loan amount that Rosenthal & Rosenthal may make to the Company to the lesser of the Maximum Credit Facility (as defined in the Accounts Receivable Financing Agreement) or $600,000, minus such reserves Rosenthal & Rosenthal, Inc. may deem necessary. Prior to this amendment, the loan amount could not exceed the lesser of the Maximum Credit Facility or the Receivable Availability (as defined in the Accounts Receivable Financing Agreement) equal to 70% of the Net Amount of Eligible Receivables (as defined in the Accounts Receivable Financing Agreement) minus such reserves as Rosenthal & Rosenthal, Inc. may deem necessary. On June 9, 2015, this Accounts Receivable Financing Agreement was further amended to increase the line of credit up to a maximum of $2,800,000.

~~NOTE 9~~ F- ~~Commitments and Contingencies~~10

None.

F-9

MAIDEN LANE JEWELERY, LTD.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

NOTE 9 - Commitments and Contingencies

None.

NOTE 10 - Related Party Transactions

On October 1, 2012 the Company entered into a one-year consulting agreement with Isaac Gurary, under which he was to provide certain business and corporate marketing services to the Company for an annual consulting fee of 3% of certain net sales during the term of the agreement. This agreement was amended on December 1, 2014 to exclude certain sales made at selected jewelry shows by trade organizations for which the Company is a designated vendor and was further amended on September 1, 2015 to further refine eligible sales products. As of ~~August~~November 3130, 2015 the amount owed to Mr. Gurary was approximately $77121,000 and was subsequently paid in full in December 2015. As of May 31, 2015, the Company had recorded accrued compensation to Mr. Gurary in the amount of approximately $63,000. Mr. Gurary serves as the Company’s President and CFO and is a significant stockholder of the Company.

During the ~~three~~six months ended ~~August~~November 3130, 2015 and ~~2014,~~2014the ~~the~~ Company purchased approximately 6459% and 4326%, respectively, of its merchandise from Classique Creations LLC (“Classique”), a company that is owned by the mother of the Company’s President.

Included in accounts payable at ~~August~~November 3130, 2015 and May 31, 2015 are amounts owed to Classique totaling approximately $2.68 million and $1.8 million, respectively. Payment terms to Classique are one to twelve months and the manner of settlement is cash payment. Pursuant to the Accounts Receivable Financing Agreement (See Note 9), accounts payable to Classique totaling $500,000 are subordinated to the Factor.

The Company rents office space from an ainactive Company affiliated with the Company’s president on a month to month basis. The agreement calls for rent at $2,~~060~~500 per month. Rent expense was approximately $715,000 and $613,000 for the ~~three~~six months ended ~~August 31~~November 30, 2015 and 2014, respectively. The Company’s portion of the rent is paid directly to the landlord.

NOTE 11 - Stockholders’ Equity

On August 4, 2014 the Company issued 10,604 shares of common stock at a price per share of $3.10 for marketing services rendered during the year ended May 31, 2014 for a total amount of $32,871; these shares have not been registered.

In connection with the issuance of $430,000 principal notes payable, the Company issued 122,550 common stock purchase warrants. Such warrants have an exercise price of $3.50 per share and expire between August and September 2024. As of ~~August~~November 3130, 2015, all common stock purchase warrants remained outstanding and exercisable with a weighted average exercise price of $3.50 per share and a remaining contractual life of 98.07 years.

The Company’s Board of Directors may issue shares of preferred stock in series and at the time of issuance, determine the rights, preferences and limitation of each series. The holders of preferred stock may be entitled to receive a preference payment in the event of any liquidation, dissolution or winding-up of the Company before any payment is made to the holders of the common stock. Furthermore, the board of directors could issue preferred stock with voting and other rights that could adversely affect the voting power of the holders of the common stock.

NOTE 12 - Major Suppliers and Customers

During the ~~three~~six months ended ~~August~~November 3130, 2015 and ~~August~~November 3130, 2014, the Company purchased approximately $12.72 million (approximately 6459%) and $~~538,000~~1.3 million (approximately 4326%), respectively, of its merchandise from one manufacturer that is a related party (see Note 11).

In addition, the Company purchased merchandise from one vendor which amounted to approximately 3641% of total purchases during the ~~three~~six months ended ~~August~~November 3130, 2015.

Our three largest customers frequently vary from period to period. For the three and six months ended ~~August~~November 3130, 2015, our three largest customers accounted for ~~approximately~~ 27approximately 13% and 9%, respectively, of our total revenues. For the three and six months ended ~~August~~November 3130, 2014, our three largest customers accounted for approximately 34 15% and 19%, respectively, of our total revenues.

NOTE 13 - Income Taxes

Our effective tax rates were approximately 0% and 0% for ~~the~~ ~~three~~the six months ended ~~August~~November 3130, 2015 and 2014, respectively.

~~NOTE 14~~ F- ~~Subsequent Events~~11

On September 18, 2015, the Company entered into a Separation and Release Agreement with Samantha Manburg, the Company’s Chief Operating Officer. Pursuant to the Separation and Release Agreement, Ms. Manburg is resigning as the Chief Operating Officer for the Company, effective November 13, 2015. In accordance with the terms of such agreement, Ms. Manburg will receive a severance allowance of approximately $36,000. The Company appointed Yitzchok Gurary, 31, to serve as the Company’s Chief Operating Officer, which appointment shall take effect as of the effective date of Ms. Manburg’s resignation.

F-10

MAIDEN LANE JEWELERY, LTD.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

~~The~~NOTE ~~Company~~14 ~~has evaluated subsequent events through the date the financial statements were issued and up to the time of filing of the financial statements with the Securities and Exchange Commission.~~- Subsequent Events

FDuring the period following November 30, 2015, the Company overpaid Yitzchok Gurary, the Company’s President and CFO, the amounts owed to him as “Loan Payable -11 Related Parties” by approximately $172,000. Such payments could not be considered prepayments of, or as an offset to, the notes payable to Yitzchok Gurary which total $674,000 in accordance with the terms of such notes. These payments were recorded by the Company as an advance to Yitzchok Gurary and as such, represent a violation of Section 402 of the Sarbanes-Oxley Act prohibiting loans to officers and directors. After a full reconciliation of such amounts, Yitzchok Gurary promptly repaid such advances. The Company intends to contact Rosenthal and its counsel to determine whether this advance violates the terms of the subordination agreement between the Company, Mr. Gurary and Rosenthal pursuant to which Mr. Gurary has agreed to subordinate a minimum of $219,000 in debt owed to him by the Company (see Note 8 - Financing Agreement).

F-12

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Note About References To Maiden Lane Jewelry, Ltd. ^TM

In this Form 10-Q the “Company”, “Maiden Lane”, “we”, “us” and “our” refer to Maiden Lane Jewelry, Ltd.^TM unless the context otherwise requires.

Note About Trademarks

Maiden Lane Jewelry, Ltd.^TM our logo and other trademarks of Maiden Lane Jewelry, Ltd. (including “Aspiri”^TM) are the property of Maiden Lane Jewelry, Ltd. All other trademarks or trade names referred to in this Annual Report are the property of their respective owners.

Forward-Looking Statements

You should read the following discussion in conjunction with our financial statements and related notes thereto. In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from management’s expectations. Our actual results could differ materially and adversely from those anticipated in such forward-looking statements as a result of certain factors.

This quarterly report contains forward-looking statements as that term is defined in the Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars. All references to “common stock” refer to our shares of common stock.

Emerging Growth Company

We are an “emerging growth company” under the federal securities laws and will be subject to reduced public company reporting requirements. In addition, Section 107 of the Jumpstart Our Business Startups Act (“JOBS Act”) also provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We are choosing to take advantage of the extended transition period for complying with new or revised accounting standards.

Overview

We are a wholesaler and manufacturer of jewelry with sales to independent jewelry retailers. Currently, our primary sales are complete engagement rings with a focus on bridal jewelry featuring uniquely cut stones and settings. Our complete engagement rings include both stone and setting and, using our managements’ experience in the jewelry industry, we create rings that show the stones to their best advantage. In addition, we also sell pendants and earrings that complement the designs and stones of our engagement ring jewelry. In connection with recent branding efforts, on May 27, 2014, we amended our certificate of incorporation to change our name from Romantique Jewelry Ltd. to Maiden Lane Jewelry, Ltd.

Beginning in December 2013, we began focusing production on bridal jewelry featuring uniquely cut diamonds that utilize an advanced cutting technique that visually and physically increases the crown size (the top and most visible part of the diamond) of a similarly weighted diamond by at least 25%. We call this increased look of the crown size “coverage” or what we call C^{5 TM} – the fifth “C” – an additional “C” after the traditional “4Cs” of carat weight, color, clarity and cut. Given production lead times for this new design, our first sales of this line of bridal jewelry began in the last two weeks of February 2014. Because this unique cutting technique significantly increases the crown size of the diamond while decreasing the pavilion (bottom end below the crown) of the stone which is usually not seen, our diamonds appear to be much larger than typically cut diamonds of the same weight. In addition, because our Company creates each ring based on a specific diamond, as each stone’s measurements and appearance is unique, we are able to design rings which accentuate a diamond’s brilliance and other positive attributes.

As part of a major sales roll-out for this new product, we branded and began marketing such uniquely cut diamonds as the Aspiri^TM (“Aspiri”) cut diamond in May 2014. In addition, in July 2014 we began to broaden the collection of Aspiri products by producing pendants and earrings; given production lead times for these products and styles, our first significant sales of this product expansion occurred in November 2014.

We believe that there are competitive barriers to entry for our Aspiri products, including the sourcing of rough diamonds, cutting technique and limitations on mass production (as each stone is unique as well as the engagement ring mountings). The creation of an Aspiri cut diamond does not lend itself to mass production whereby approximately 92% of diamonds are cut and polished by lower cost, high volume Asian and Russian cutters which rely primarily on the manufacture of similar and common cuts rather than the careful evaluation and cutting tailored to the unique attributes of each stone. Instead, the rough for each diamond is carefully evaluated and uniquely cut whereby the dimensions, faceting and other factors are taken into consideration to maximize the face coverage of the diamond while maintaining its brilliance. Similarly, our ring and jewelry mountings are not mass produced. Instead of a one-size fits many approach and because each Aspiri stone is unique, our mountings are custom designed around the stone.

Our Aspiri cut engagement rings, including both stone and setting, show the center Aspiri diamond to its best advantage, i.e. accentuating its brilliance and hiding its imperfections. To maintain high quality standards, our manufacturing of the ring mountings and setting of stones, to date, is done in the United States. We believe that our new line of bridal jewelry featuring uniquely cut stones will appeal to both retailers and customers due to their perceived size, quality, cost and value.

Our website is located at www.maidenlaneltd.com.

Critical Accounting Policies and Estimates

The condensed financial statements are prepared in accordance with accounting principles generally accepted in the United States, which require us 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 periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates.

Revenue Recognition

For revenue from product sales, we recognize revenue in accordance with Staff Accounting Bulletin No. 104, “Revenue Recognition” (SAB No. 104), which superseded Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements” (SAB No. 101). SAB No. 104 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgment regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowance, and other adjustments are provided for in the same period the related sales are recorded.

Description of Revenues

Prior to December 2012, most of our revenues were generated through the sale of rings, pendants, necklaces and earrings with stones such as diamonds, rubies and emeralds (“Fashion Jewelry”). In December 2012, we launched our line of bridal engagement rings inclusive of its diamond center stone (“Complete Rings”) and in February 2014, we began to sell our Aspiri^TM cut diamond engagement ring. In November 2014, we began the sales of our expanded Aspiri product line which includes pendants and earrings.

Beginning in December 2013, we began focusing on bridal jewelry featuring uniquely cut stones which we subsequently branded in May 2014 as an Aspiri^TM diamond. These stones utilize an advanced cutting technique that visually and physically increases the crown size (the top and most visible part of the stone) of similarly weighted stones by 25% to 50%. Because this unique cutting technique significantly increases the crown size of the stone while decreasing the pavilion (bottom end below the crown) of the stone which is usually not seen, our diamonds appear to be much larger than typically cut diamonds of the same weight. In addition, because our company creates each ring based on a specific stone, as each stone’s measurements and appearance is unique, we are able to design rings which accentuate a diamond’s brilliance and other positive attributes. We believe that our new line of bridal jewelry featuring uniquely cut stones will appeal to both retailers and customers due to their perceived size, quality, cost and value.

Our plan is to expand our bridal ring sales, predominately in the new style of uniquely cut stones, which we believe are less seasonal at the retail-to-consumer level and less subject to economic downturn.

Our sales are comprised of primarily three major products: Aspiri Cut Rings, Complete Rings and Fashion Jewelry. We may also on occasion sell loose stone inventory.

A breakdown of gross sales for the three months ended ~~August~~November 3130, 2015 and 2014, respectively:

	Three Months Ended August 31,
	Three Months Ended November 30,						Six Months Ended November 30,
	2015			2014			2015			2014
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
AspiriTM Cut Jewelry		4156	%		3450	%		49	%		43	%
Complete Rings (not Aspiri)		3021			4728			25			36
Fashion Jewelry & Other		2923			1922			26			21

The Company expanded its Aspiri cut diamond line in November 2014 to include pendants and earrings. A breakdown of Aspiri jewelry to gross sales for the three months ended ~~August~~November 3130, 2015 and 2014, respectively:

	Three Months Ended August 31,
	Three Months Ended November 30,						Six Months Ended November 30,
	2015			2014			2015			2014
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Aspiri Engagement Rings		38	%		34	%
AspiriTM Engagement Rings		50	%		46	%		45	%		41	%
Aspiri Engagement Pendants		2			0
AspiriTM Pendants		4			2			3			1
Aspiri Engagement Earrings		1			0
AspiriTM Earrings		2			2			1			1

Employees

As of ~~August~~November 3130, 2015, we had 98 full-time employees. Generally, our sales representatives are paid on a commission basis.

Results of Operations

The principal measure of our financial performance are sales revenues from the sale of our products to independent retailers, the related cost of sales related to such inventory and the resultant net sales. Net income is also a key measure of financial performance which further adjusts net sales by administrative expenses, professional fees, interest expense and income taxes.

Set forth below is a discussion of our results of operations for the quarters ended ~~August~~November 3130, 2015 and ended ~~August~~November 3130, 2014.

Sales Revenues

Quarter Ended November 30, 2015 and 2014. For the three months ended ~~August~~November 3130, 2015, we had net sales revenues of approximately $21.49 million aas compared ~~33%~~to ~~increase from~~ $12.87 million of net sales for the three months ended ~~August~~ 31November 30, 2014. These revenues arose from the sale of jewelry to various retailers. The decrease in due to unusually high seasonal sales during the November 2014 quarter relative to current and historic experience.

Our three largest customers frequently vary from period to period. For the three months ended ~~August~~November 3130, 2015 and 2014, our three largest customers accounted ~~for~~ for approximately 2713% and 3415% of our total revenues, respectively.

~~Cost~~Six Months Ended November 30, 2015 and 2014. For the six months ended November 30, 2015, we had net sales revenues of ~~Sales~~approximately $4.3 million as compared to $4.6 million of net sales for the six months ended November 30, 2014. These revenues arose from the sale of jewelry to various retailers.

~~Cost~~Our ofthree ~~Sales~~largest ~~increased to $2.0 million~~customers ~~for~~frequently ~~the~~vary ~~three~~from ~~months~~period ~~ended~~to ~~August 31, 2015 from $1~~period.5 ~~million~~For ~~for~~ the ~~three~~six months ended ~~August~~November 3130, ~~2014. Gross profit for the three months ended August 31,~~ 2015 ~~increased~~and ~~41% to approximately $448~~2014,~~000~~ our ~~from approximately $318,000 for the~~ three ~~months~~largest ~~ended~~customers ~~August~~accounted ~~31, 2014. Gross margins on net sales~~ for ~~the three months ended August 31, 2015 and 2014 were~~ approximately ~~18.7~~9% and ~~17.4~~19%, ~~respectively. Before~~of ~~taking~~our ~~into~~total ~~account sales credits~~revenues, ~~returns and allowances, gross margins on gross sales for the three months ended August 31, 2015 and 2014 were approximately 30.2% and 32.6%,~~ respectively.

Cost of Sales

Quarter Ended November 30, 2015 and 2014. Cost of Sales decreased to approximately $1.7 million for the three months ended November 30, 2015 from $2.0 million for the three months ended November 30, 2014 on lower sales volume. Gross profit for the three months ended November 30, 2015 decreased to approximately $238,000 from approximately $705,000 for the three months ended November 30, 2014. Gross margins on net sales for the three months ended November 30, 2015 and 2014 were approximately 12.2% and 25.8%, respectively. Before taking into account sales credits, returns and allowances, gross margins on gross sales for the three months ended November 30, 2015 and 2014 were approximately 35.8% and 34.8%, respectively. During the three months ended November 30, 2015, the Company provided higher discounts for selected product that was deemed older inventory. In addition, some items sold during the period needed additional workmanship or recutting to meet the Company’s quality standards.

Six Months Ended November 30, 2015 and 2014. Cost of Sales increased to $3.7 million for the six months ended November 30, 2015 from $3.5 million for the six months ended November 30, 2014. Gross profit for the six months ended November 30, 2015 decreased to approximately $686,000 from approximately $1 million for the six months ended November 30, 2014. Gross margins on net sales for the six months ended November 30, 2015 and 2014 were approximately 15.8% and 21.9%, respectively. Before taking into account sales credits, returns and allowances, gross margins on gross sales for the six months ended November 30, 2015 and 2014 were approximately 32.9% and 33.9%, respectively.

Operating Expenses

General, Selling and Administrative

Quarter Ended November 30, 2015 and 2014. General, Selling and Administrative expenses were approximately $~~274~~248,000 and approximately $~~153~~167,000 for the three months ended ~~August~~November 3130, 2015 and 2014, respectively. This increase is primarily attributed to an increase in ~~personnel~~travel ~~costs~~and ~~for~~show ~~additional~~expense of ~~hires~~approximately in$47,000, ~~the~~an ~~marketing~~increase ~~and~~of ~~production areas (~~approximately $4023,000) in advertising and an increase in ~~sales~~dealer commissions ~~related~~of toapproximately $19,000. ~~our~~In ~~IJO~~addition, ~~membership~~there ~~and~~was an additional increase in personnel expenses for ~~customer~~the ~~sales~~hiring ~~incentives~~of ~~(approximately~~a ~~$30,000) and~~director anof ~~increase~~marketing. inThese ~~show~~increases were ~~and~~offset ~~advertising~~by ~~costs~~website ~~(approximately~~development ~~$33,000)~~fees ~~and~~for ~~related~~a ~~increased~~custom ~~travel~~retailer ~~expense~~portal (of approximately $1643,000) incurred in the prior 2014 quarter.

Six Months Ended November 30, 2015 and 2014. General, Selling and Administrative expenses were approximately $522,000 and approximately $320,000 for the six months ended November 30, 2015 and 2014, respectively. This increase is primarily attributed to an increase in travel and show expense of approximately $64,000, an increase of approximately $55,000 in advertising and an increase in dealer commissions of approximately $41,000. In addition, there was an additional increase in personnel expenses for the hiring of a director of marketing during and an additional back office employee. These increases were offset by website development fees for a custom retailer portal of approximately $43,000 incurred in the prior six months ended November 30, 2014.

Officers’ Compensation

Quarter Ended November 30, 2015 and 2014. For the three months ended ~~August~~November 3130, 2015, officers’ compensation was approximately $~~117~~146,000 as compared to approximately $91137,000 for the three months ended ~~August 31~~November 30, 2014. This increase in is primarily related to the hiring of ~~chief~~ senior operating ~~officer~~and production personnel since the prior year.

Six Months Ended November 30, 2015 and 2014. For the six months ended November 30, 2015, officers’ compensation was approximately $263,000 as compared to approximately $229,000 for the six months ended November 30, 2014. This increase in is primarily related to the hiring of senior operating and production personnel since the prior year.

Professional and Consulting Fees

Quarter Ended November 30, 2015 and 2014. Professional and Consulting fees were approximately $~~141~~66,000 for the three months ended ~~August~~November 3130, 2015, a decrease of $27125,000 from approximately $~~168~~191,000 for the three months ended ~~August~~ 31November 30, 2014. The decrease is primarily attributable to a decrease in marketing expenses by $107,000 (primarily for the initial development of the Aspiri brand) and a $19,000 decrease in professional consulting fees.

Six Months Ended November 30, 2015 and 2014. Professional and Consulting fees were approximately $206,000 for the six months ended November 30, 2015 a decrease of $153,000 from approximately $359,000 for the six months ended November 30, 2014. The decrease is primarily attributable to a decrease in marketing expenses by $100,000 (initial development of the Aspiri brand) and a $54,000 decrease in professional consulting fees.

Other Income (Expenses)

Quarter Ended November 30, 2015 and 2014. For the three months ended ~~August~~November 3130, 2015 and 2014, we had other expenses of approximately $87114,000 and $3266,000, respectively. These expenses were primarily related to interest expense on accounts receivable financings of $2.73 million as of ~~August 31~~November 30, 2015 as compared to $1.57 million at ~~August~~November 3130, 2014. The amount of interest expense is dependent primarily on the interest rate charged and the average outstanding balance. For the three months ended ~~August~~November 3130, 2015, the average outstanding balances on accounts receivable financings were $2.6 5 million and the average interest rate was 7.5%. In addition, for the three months ended November ~~August 31~~30, 2015 and 2014 includes approximately $2325,000 and $116,~~700~~000, respectively, for the amortization of debt discount on $430,000 of face amount unsecured notes with detachable warrants and interest expense of $12,000 and $1,200, respectively, on such notes.

Six Months Ended November 30, 2015 and 2014. For the six months ended November 30, 2015 and 2014, we had other expenses of approximately $201,000 and $98,000, respectively. These expenses were primarily related to interest expense on accounts receivable financings of $2.3 million as of November 30, 2015 as compared to $1.7 million at November 30, 2014. The amount of interest expense is dependent primarily on the interest rate charged and the average outstanding balance. For the six months ended November 30, 2015, the average outstanding balances on accounts receivable financings were $2.4 million and the average interest rate was 7.5%. In addition, for the six months ended November 30, 2015 and 2014 includes approximately $25,000 and $16,000, respectively, for the amortization of debt discount on $430,000 of face amount unsecured notes with detachable warrants and interest expense of $24,000 and $13,000, respectively, on such notes.

Net Income (Loss)

Quarter Ended November 30, 2015 and 2014. As a result of the above, for the three months ended ~~August~~November 3130, 2015, we had anet loss before taxes of $~~170~~344,000 and net loss after tax of $~~155~~321,000. Net loss per share was $0.03. For the three months ended November 30, 2014, we had a net income of $142,000 and net income after tax of $104,000 after provision for income taxes of $38,000. Net income per share was $0.01.

Six Months Ended November 30, 2015 and 2014. As a result of the above, for the six months ended November 30, 2015, we had net loss before taxes of $514,000 and net loss of $476,000. Net loss per share was $0.05. For the six months ended November 30, 2014, we had net income of $15,000 and net income of $20,000 after provision for income taxes. Net income per share was $0.00.

Liquidity and Capital Resources

Liquidity is a measure of our ability to meet potential cash requirements, including ongoing commitments to repay borrowings, fund and maintain investments and other general business needs. We recognize the need to have funds available to purchase inventory and for operating our business. We seek to have adequate liquidity at all times to cover normal cyclical swings in funding availability and to allow us to meet irregular and unexpected funding requirements. We plan to satisfy our liquidity needs through normal operations with the goal of avoiding unplanned sales of assets or emergency borrowing of funds.

Since our inception, in addition to internally generated funds, we have been dependent on investment capital and loans as a primary source of liquidity.

At ~~August~~November 3130, 2015, we had long term liabilities of $~~911~~674,000, which represents a note payable to a related party for $600,000 and a $~~430~~74,000 ofConvertible ~~par~~Note ~~notes~~Payable ~~payable~~to ~~less unamortized~~a ~~discount~~related ~~of $119,000~~party.

In addition, the Company has $430,000 of par notes payable less unamortized discount of $93,000.

On September 30, 2013 the Company entered into an Account Receivable Financing Agreement with Rosenthal & Rosenthal, Inc. (“Rosenthal”) pursuant to which Rosenthal shall provide the Company with a line of credit up to $1,000,000. On October 6, 2014, this Accounts Receivable Financing Agreement was amended to increase the line of credit up to a maximum of $2,000,000. Loans made under the Accounts Receivable Financing Agreement bear interest at prime rate plus 3.5% (for an effective average rate of 7.5% for the years ended May 31, 2015 and 2014) and are subject to certain financial covenants. As security for these loans, Rosenthal has placed liens on the Company’s accounts receivable, inventories, and all other assets. In addition, the loans have been personally guaranteed by Yitzchok Gurary, and his parents, Mordechai Gurary and Leah Gurary. In addition, the Company has granted Rosenthal a Landlord Subordination agreement.

On March 9, 2015, this Accounts Receivable Financing Agreement was amended to increase the line of credit up to a maximum of $2,500,000. On May 7, 2015, the Accounts Receivable Financing Agreement was amended to increase the loan amount that Rosenthal & Rosenthal may make to the Company to the lesser of the Maximum Credit Facility (as defined in the Accounts Receivable Financing Agreement) or $600,000, minus such reserves Rosenthal & Rosenthal, Inc. may deem necessary. Prior to this amendment, the loan amount could not exceed the lesser of the Maximum Credit Facility or the Receivable Availability (as defined in the Accounts Receivable Financing Agreement) equal to 70% of the Net Amount of Eligible Receivables (as defined in the Accounts Receivable Financing Agreement) minus such reserves as Rosenthal & Rosenthal, Inc. may deem necessary. On June 29, 2015, this Accounts Receivable Financing Agreement was further amended to increase the line of credit up to a maximum of $2,800,000.

The Accounts Receivable Financing Agreement calls for the subordination of certain of the Company’s debt as follows:

Accounts Payable – Classique Creations, LLC		$	500,000
Demand Loans Payable – Related Party		$	~~210~~219,000

In addition, the Company has granted Rosenthal a Landlord Subordination agreement.

In connection with the Accounts Receivable Financing Agreement, the Company has borrowed approximately $2.7 million as of August 31, 2015. The Accounts Receivable Financing Agreement is in full force and effect until September 30, 2015 (the “Renewal Date”) and from year to year thereafter, unless sooner terminated as provided in the Accounts Receivable Financing Agreement.5

AtIn ~~August~~connection 31with the Accounts Receivable Financing Agreement, ~~2015~~the weCompany ~~had~~has ~~working~~borrowed ~~capital of~~ approximately $12.53 million. Asas of ~~August~~November 3130, 2015. The weAccounts ~~had~~Receivable Financing ~~$4,000~~Agreement is in ~~cash~~full force and ~~cash~~effect ~~equivalents~~until September 30, 2016 (the “Renewal Date”) and from year to year thereafter, unless sooner terminated as provided in the Accounts Receivable Financing Agreement.

At November 30, 2015 we had working capital of approximately $1.0 million. As of November 30, 2015 we had $7,000 in cash and cash equivalents.

Cash Requirements

We believe that we will need additional funds to continue operations over the next twelve months and for the implementation of our plan of operation.

Off Balance Sheet Arrangements

Maiden Lane has no off balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are subject to market risk associated with changes in interest rates and commodity prices. Managing these risks is essential to our business. We consider our principal market risk to be fluctuations in the diamond and metal components of our inventory.

Commodity Price Risk

We are subject to market risk associated with changes in the price of precious metals. We do not enter into any hedging or other derivative contracts (such as forward contracts for the purchase of raw materials) to mitigate commodity price risk as we generally scale our production to near-term demand rather than longer-term demand projections whereby large amounts of raw material are warehoused.

Raw materials are stated at the lower of cost or market, with cost determined by specific identification for unique items (such as diamond stones, each with a particular carat weight, color, clarity and cut) and using the first-in, first-out method for generic items or styles (certain semi-mounts and fashion jewelry). Finished goods which we fabricate are stated at the lower of cost or market, with cost determined by specific identification for each component making up the item plus direct labor and other fees (primarily diamond certification).

Our manufacture of jewelry is typically for completed inventory with raw materials (individual inventory components of stones and metals) generally held to a minimum. Generally, significant increases or decreases in the market value of diamond and metal components of our inventory result in revised pricing to our customers.

Given that we do not hedge or enter into derivate contracts to address commodity price risks, we believe that such risk is immaterial as of ~~August~~November 3130, 2015.

Interest Rate Risk

Interest rate risk is defined as the sensitivity of our current and future earnings to interest rate volatility, variability of spread relationships and the effect that interest rates may have on our cash flows. Changes in the general level of interest rates can affect our net income as a result of interest expense incurred on outstanding debt.

We are subject to market risk associated with changes in the prime rate in connection with the Account Receivable Financing Agreement. If short-term interest rates or the prime rate averaged 10% more or less, interest expense would have ~~changed~~increased byor ~~less~~decreased ~~than~~by approximately $1053,000 for the ~~three~~six months ended ~~August~~November 3130, 2013.

We did not hold any derivative financial instruments for hedging purposes as of ~~August~~November 3130, 2015 or 2014.

Item 4. Controls and Procedures

Management is required by Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 to evaluate, with the participation of the Chief Executive Officer and Chief Financial Officer, the effectiveness of disclosure controls and procedures as of the end of the period covered by this report. Disclosure controls and procedures refer to controls and other procedures designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the Securities and Exchange Commission. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in our reports that we file or submit under the Exchange Act is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management was required to apply its judgment in evaluating and implementing possible controls and procedures.

Management, with the participation of the Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures. Based on their evaluation, as of the end of the period covered by this Form 10-Q, the Chief Executive Officer and Chief Financial Officer have concluded that such disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) are effective.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Part II — OTHER INFORMATION

Item 1. Legal Proceedings

There are no material legal proceedings to which we are a party, other than ordinary routine litigation incidental to our business.

Item 1A. Risk Factors

None.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. [Removed and Reserved]

Item 5. Other Information

None.

Item 6. Exhibits

The following exhibits are filed as a part of this Form 10-Q (a) Exhibits required by Item 601 of Regulation S-K.

Number		Description
(31)		Section 302 Certification
31.1		Certification of Principal Executive Officer Rule 13a-14(a) pursuant to Rule13a- 14(a) of the Securities Exchange Act of 1934.
31.1		Certification of Principal Financial Officer Rule 13a-14(a) pursuant to Rule13a- 14(a) of the Securities Exchange Act of 1934.
(32)		Section 906 Certification
32.1		Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, required by Section 906 of the Sarbanes-Oxley Act of 2002.
32.1		Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, required by Section 906 of the Sarbanes-Oxley Act of 2002.
(101)		XBRL Taxonomies
101		The following materials from Maiden Lane Jewelry’s Quarterly Report on Form 10-Q for the quarter ended ~~August~~November 3130, 2015 are filed herewith, formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Balance Sheet, (ii) the Condensed Statements of Operations, (iii) the Condensed Statement of Stockholders’ Equity, (iv) the Condensed Statements of Cash Flows, and (v) the Condensed Notes to Financial Statements.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	MAIDEN LANE JEWELRY, LTD.
	(Registrant)
Date: October 20, 2015	By:	/s/ Michael Wirth
Date: January 19, 2016	By:	/s/ Michael Wirth
		Michael Wirth
		Chief Executive Officer,

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