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Liquidity and Capital Resources:
As shown in the accompanying financial statements, Hartcourt incurred net losses of $5,282,272 and $987,628 for the nine months ended September 30, 2000 and 1999, respectively. Additionally, Hartcourt's current liabilities exceeded its current assets by $2,588,083 at September 30, 2000. These factors, as well as negative cash flows from operations, Hartcourt's inability to meet debt obligations and the need to raise additional funds to accomplish its objectives, create substantial doubt about Hartcourt's ability to continue as a going concern.
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As a result of the above activities, the company experienced a net decrease in cash of $20,754 for the nine months ended September 30, 2000. The ability of Hartcourt to continue as a going concern is still dependent on its success in obtaining additional financing and fulfilling its plan of restructuring as outlined above. |
