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

To: Q. who wrote (4912)	1/13/2000 6:06:00 PM
From: Daniel Chisholm	Read Replies (1) \| Respond to of 7056

Dee-Bar, The part in the 10-Q that I found interesting was this: Cash used in operations principally reflects net earnings of approximately $1,632,173 before depreciation and amortization, offset by changes in operating assets and liabilities. The most significant changes in operating assets and liabilities were an increase in receivables of approximately $4,170,571, as a result of the recognition of LCE revenues under the LFT agreement, and an increase in income taxes payable, which are currently recorded as deferred tax liabilities. My question is this. What does it mean to recognize revenue, and yet classify income tax on that revenue as a deferred tax liability? Is this self-consistent? It seems to me that this suggests that HITT has definitely not sent any cash to the IRS in the form of quarterly tax installments. Does this mean that from a tax accounting point of view (as opposed to a GAAP point of view) that the revenue would be somehow classified as "contingent" or "non current" or something like that? Is this difference between their GAAP and tax accounting treatments OK? Or perhaps we can divine their true opinion as to the collectibility of the LCE receivables? - Daniel