Hitsgalore.com Moving Forward to Secure New Auditors
RANCHO CUCAMONGA, Calif., July 29 /PRNewswire/ -- Hitsgalore.com, Inc., (OTC Bulletin Board: HITT) has announced that the Company is moving forward to retain a new accounting firm to re-audit the pre-merger, pre-Hitsgalore 1996, 1997 and 1998 accounting and records of System Communication Inc. ''This is for work already done by two other auditing firms, who will not provide an opinion letter on their own work that they performed and for which they were paid.'' said Dorian Reed, Chairman of Hitsgalore.com.
The Company disclosed in a recent 8-K filing that Moore Stephens Lovelace P.A., of Orlando, Florida, a firm originally retained by the old, pre-merger, System Communication Inc., had resigned. Hitsgalore.com paid Moore Stephens Lovelace for the 1998 audit contained in the Company's Form 10-K, wherein the Company made a full and voluntary disclosure of Mr. Reed's background, including a 1992 conviction. ''The firm accepted the disclosed background information and agreed at the time to the use of their opinions, agreed to perform the re-audit of Ernst and Young's 1996 audit, and accepted a retainer of $15,000,'' according to Reed.
''Since all of these audits were for events occurring before the merger, and even before the existence of Hitsgalore.com, we are hard pressed to understand what the surprise is all about, since all was disclosed in advance. We plan to move ahead quickly with retaining another firm, and we are looking forward to moving off of the Bulletin Board as soon as possible,'' said Reed.
Reed continued, ''The Company is taking action to defend its name and plans to fully prosecute all malicious bashers of our company and its personnel through the $20 million dollar lawsuit already filed. It appears that additional bashers have appeared, ironically at the same time as the release of negative news, and will be added to the suit.''
''Many Internet stocks are losing, or have lost, billions of dollars in market cap and investment dollars, and most have never made a profit, and yet have not received all the negative press as our relatively small Internet search engine,'' said Reed. ''The company, according to Reed, is doing well. We feel we have an extremely bright future. Of course we will face challenges such as these and others, but the facts remain the same: we are a profitable Internet company. My personal issues have all been disclosed and will not deter the Company from being a success and a force to be reckoned with in the area of search technology. I just want to encourage all the investors who have hung in there with us by emphasizing that we will not quit or give up.''
Hitsgalore.com generates revenue and profit from its unique business model of giving away free banners, lifetime banner placement, and other Portal Services. The Company generates revenue from its Keyword Bid & Rank program, sponsorships of Portal Services, and Local City Editions featuring local content. Hitsgalore.com strives to provide porn-free searching and does not accept or encourage any porn or adult-content listings on its site.
Financial statements in this press release other than historical facts are ''forward-looking'' statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. Hitsgalore.com, Inc. intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements are subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the company's actual results could differ materially from expected results.
SOURCE: Hitsgalore.com
|
