Must read for HRCT investors>>
By: frisky $$$
Reply To: 144777 by hotsearch $$$$
Monday, 9 Jul 2001 at 10:35 PM EDT
Post # of 145037
Mr. Phan or Mr. Shill: Which of the following is a lie?
(1) On December 31, 2001HRCT current liabilities of $3,146,877 are much greater than current assets of $919,290. On
March 31, 2001, HRCT current liabilities of $3,386,578 are even much greater than current assets of $757,427. The cash
has dwindled to from $402,993 to $154,803 from 12/31/00 to 3/31/01. If one excludes payable to related parties, due from
related parties, deferred revenues and prepaid expenses, one will discover that current liabilities are still greater than
current assets for $230,974 as of 3/31/00.
Evidence: Page F-3 of 10K statement dated 4/2/2001, page F3, F4 of 10q statement dated on 5/15/2001.
(2) HRCT defaulted a loan payment of $33,788 as of December 31, 2000. It still cannot pay $23,777 as of 3/31/01. The
remaining principal of the long-term note is $609,867.
Evidence: Page F-29, Note 11 of 10K statement dated 4/2/2001; page F-4 of 10q statement dated on 5/15/01.
(3) HRCT incurred huge losses:$7,862,468 in 1999 and $6,790,879 in 2000. The accumulated deficits since inception
were $43,173985 as of December 31, 2000. It lost additional $1,225,831 in the first quarter of $2001.
Evidence: page F-4 and F-5 of 10K statement dated 4/2/2001.
(4) HRCT’s auditors issued going-concern qualifications in their auditor reports.
Evidence: Page F-1, F-2 of 10K statement dated 4/2/2001.
(5) HRCT had changed three auditors during the last 12 months. KPMG stayed as HRCT’s auditor for two months. This is
called auditor-shopping.
Evidence: Page 37of 10K statement dated 4/2/2001.
(6) HRCT has admitted that it might go bankrupt soon. The following is an excerpt from the 10 K statement:
…As shown in the accompanying financial statements, Hartcourt incurred net losses of $6,790,879 and $7,862,468 for
the years ended December 31, 2000 and 1999, respectively. In addition, Hartcourt's working capital deficit of $2,227,687
is not adequate to meet its minimum monthly expenses. These factors, as well as negative cash flows from operations of
$2,513,094, 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…
(7) HRCT is a stock certificate mill. It issued 1,268,306 shares to related parties and ENOVA shareholders in 1999. It
issued 11,818,842 to insiders, consultants, FTL shareholders, employees, related parties.
Evidence: Page F-7 and F-8 of 10 K statement dated 4/2/2001.
(8) HRCT’s CEO filed fraudulent 10sbs claiming his Ph.D. was from Penn State instead of from a mail-order diploma mill,
Sussex College of Technology.
Evidence: In the filing of AMG VENTURE SERVICES INC (AVSI), SEC 10SB12B dated May 6, 1999, AMERICAN
VENTURE GROUP INC. (AVGI). SEC 10SB12B dated May 27, 1999, and APOLLO VENTURE GROUP INC (AVGI)
SEC 10SB12B dated June 1, 1999. Phan repeatedly perjured his Ph.D. in Management was from Penn State instead of
being from the deceptive mail-order diploma mill, Sussex College of Technology. Filing a fraudulent form 10 is a very
serious crime.
(9) Insiders have dumped HRCT at any price. No one has every bought a share.
Evidence: Insiders’ activities in Edgar Database.
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