Hartcourt Companies (fka HRCT)

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How many blazing red flags can you spot even in HRCT's comical first SEC filing? Hartcourt was already failing in pens, cosmetics, gold mining (!!!) and Chinese real estate/construction. Regis Possino's name appears.

Hartcourt stumbled from Day One, and at every turn afterward:

"In April 1994, the Company entered into a Lease Agreement with Tokai-Anza-Scripto Pen Company ("Anja"), for the use of five special ball pen assembly machines by the Xinhui JV. The lease provides for semi-annual payments of $25,000 over a ten-year term, subject to adjustment based on future purchases
of merchandise by the Company from the lessor. onsequently, annual lease payments could range from zero, if annual purchases are in excess of $1,000,000, to $100,000, if annual purchases are less than $100,000.

The machinery was delivered by Anja in June 1995. However, the machinery initially did not function properly and therefore, the lease term did not commence until February 1996. In December 1996, the machinery was shipped by vessel back from the Xinhui JV to the Company and is scheduled to arrive in January 1997. The Company and Anja have agreed to terminate the lease upon delivery of the machinery to Anja with no further obligation to the Company. To date, there have been no payments under this lease."

That full filing can be "admired" at:
http://www.sec.gov/Archives/edgar/data/949427/0001017386-97-000005.txt