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

To: bob sims who wrote (1790)	6/4/1999 11:15:00 AM
From: Q.	Read Replies (2) \| Respond to of 7056

Here's an explanation of Ernst & Young's role in this: HITT went public Mar. 19 by a reverse merger into a shell. Ernst & Young was the auditor for the old shell. HITT's new auditor is a local nobody called "Moore Stephens Lovelace". normally, the auditor for a shell would be willing to give permission for the successor company to use its audit report on the old shell. Ernst & Young did give the new HITT this permission, but now it has retracted that permission. Retracting that permission highly unusual. This retraction is a statement of what Ernst & Young thinks about the new HITT, not what it thought about the old shell. So this is very relevant to investors interested in HITT stock: A big auditor says the new HITT is unworthy of its opinion because it is so seriously tainted by Dorian Reed. here's E&Y's opinion from the May 26 10k, which E&Y is now retracting: REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Board of Directors Hitsgalore.com, Inc.Rancho Cucamonga, CA We have audited the accompanying consolidated statements of operations, stockholders' equity, and cash flows of Hitsgalore.com, Inc. (formerly Systems Communications, Inc.) and Subsidiaries for the year ended December 31, 1996. 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 audits. We conducted our audit 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 audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated results of operations and cash flows of Hitsgalore.com, Inc. (formerly Systems Communications, Inc.) and Subsidiaries for the year ended December 31, 1996, 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 the year ended December 31, 1996, and has a working capital deficiency and stockholders' equity deficiency at December 31, 1996. In addition, the Company has not complied with certain repayment terms of loan agreements. 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/ Ernst & Young LLP Tampa, FloridaDecember 24, 1997

To: bob sims who wrote (1790)	6/4/1999 11:42:00 AM
From: BORIS BADENUFF	Read Replies (2) \| Respond to of 7056

Isn't this about old SCMI ? 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 the year ended December 31, 1996, and has a working capital deficiency and stockholders' equity deficiency at December 31, 1996. In addition, the Company has not complied with certain repayment terms of loan agreements. 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. What is it about this that I don't understand???? chuckle