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Microcap & Penny Stocks : HITSGALORE.COM (HITT) -- Ignore unavailable to you. Want to Upgrade?

To: Mighty_Mezz who wrote (3149)	7/28/1999 3:49:00 PM
From: Q.	Read Replies (1) \| Respond to of 7056

Actually, the going concern was not given a week ago, it was given April 14, 1999. And it applied to the financial condition on 12/31/98, which was before the March 19 reverse merger. So it applied to SCMI's financial statements, rather than HITT's. The auditor was never required to audit the statements of HITT subsequent to the merger. I'm not disputing in any way the negative meaning of the auditor's resigning. It means that the auditor doesn't want Hitsgalore as a client. The resignation, and the reason given, are not good news for HITT shareholders. The going concern is a different matter. Perhaps some readers were confused by this. Companies usually follow a prescribed formula to report when there is a change of auditor for the company: the 8-k includes a statement of whether the auditor had given a qualified opinion (in this case the going concern in April) and whether there had been disagreements between the auditor and the client. The client followed the usual formula in wording its 8-k. Here's the auditor's opinion from the 10k edgar-online.com REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Board of Directors Hitsgalore.com, Inc. Rancho Cucamonga, CA We have audited the consolidated balance sheets of Hitsgalore.com, Inc. (formerly Systems Communications, Inc.) and Subsidiaries as of December 31, 1998 and 1997, and the related consolidated statements of operations, changes in stockholders' deficit and cash flows for the years then ended. 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 audit. We conducted our audits in accordance with generally accepted auditing standards. 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 examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Hitsgalore.com, Inc. (formerly Systems Communications, Inc.) and Subsidiaries at December 31, 1998 and 1997, and the consolidated results of their operations and their cash flows for the years ended December 31, 1998 and 1997, in conformity with generally accepted accounting principles. The accompanying consolidated financial statements have been prepared assuming that Hitsgalore.com, Inc. (formerly Systems Communications, Inc.) and Subsidiaries will continue as a going concern. As more fully described in Note 3, the Company has incurred operating losses during each of the years in the three-year period ended December 31, 1998 and has a working capital deficiency and stockholders' equity deficiency at December 31, 1998. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty. /s/ Moore Stephens Lovelace, P.A. Orlando, Florida April 14, 1999