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Gustav
Form 10-K for HARTCOURT COMPANIES INC
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14-Sep-2009
Annual Report
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Management discussion and analysis contains comparisons of the results of our operations for the twelve months ended May 31, 2009, for the 12 months ended May 31, 2008.
THE HARTCOURT COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Fiscal year ended
May 31 (12 months)
2009 2008
Net revenues $ 2,431,955 $ -
Cost of revenues 368,167 -
Gross profit 2,063,788 -
Operating expenses:
General and administrative expenses 1,343,842 1,299,858
Depreciation and amortization 20,839 13,510
Impairment of goodwill - 682,988
Total operating expenses 1,364,681 1,996,356
Income (loss) from operations 699,107 (1,996,356 )
Other income
Foreign currency exchange gain 43,648 -
Gain on settlement of debt 182,687 -
Total other income 226,335 -
Income (loss) from operations before income tax provision
and minority interest 925,442 (1,996,356 )
Provision for income taxes (212,791 ) -
Minority interest, net of taxes (697,506 ) -
Income (loss) from continuing operations 15,145 (1,996,356 )
Discontinued operations:
Gain/(loss) from discontinued operations - 22,878
Income/(loss) from discontinued operations - 22,878
NET INCOME (LOSS) 15,145 (1,973,478 )
OTHER COMPREHENSIVE ITEM:
Foreign currency translation loss (48,226 ) (60,754 )
NET COMPREHENSIVE LOSS $ (33,081 ) $ (2,034,232 )
BASIC AND DILUTED EARNINGS/ (LOSS) PER COMMON SHARE:
Income/(loss) from continued operations basic $ 0.00 $ (0.01 )
Income from discontinued operations basic $ - $ 0.00
Income/(loss) per share basic $ 0.00 $ (0.01 )
Basic weighted average number of shares outstanding 304,501,261 205,761,854
Income (loss) from continued operations diluted $ 0.00 $ (0.01 )
Loss from discontinued operations diluted $ - $ 0.00
Income (loss) per share diluted $ 0.00 $ (0.01 )
Diluted weighted average number of shares outstanding 304,561,261 205,488,066
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The following discussion contains forward-looking statements. Forward looking statements are identified by words and phrases such as "anticipate", "intend", "expect" and words and phrases of similar import. We caution investors that forward-looking statements are only predictions based on our current expectations about future events and are not guarantees of future performance. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements due to risks, uncertainties and assumptions that are difficult to predict, including those set forth in Item 1A above. We encourage you to read those risk factors carefully along with the other information provided in this Report and in our other filings with the SEC before deciding to invest in our stock or to maintain or change your investment. We undertake no obligation to revise or update any forward-looking statement for any reason, except as required by law.
You should read this MD&A in conjunction with the Consolidated Financial Statements and Related Notes in Item 8.
Critical Accounting Policies and Estimates
In preparing our financial statements, we make estimates, assumptions and judgments that can have a significant impact on our net revenue, operating income or loss and net income or loss, as well as on the value of certain assets and liabilities on our balance sheets. We believe that the estimates, assumptions and judgments involved in the accounting policies described below have the greatest potential impact on our financial statements, so we consider these to be our critical accounting policies. Senior management has discussed the development and selection of these critical accounting policies and their disclosure in this Report with the Audit Committee of our Board of Directors. We believe the following critical accounting policies involve the most complex, difficult and subjective estimates and judgments: revenue recognition; allowance for doubtful accounts; income taxes; stock-based compensation; asset impairment.
Revenue Recognition
In accordance with generally accepted accounting principles ("GAAP") in the United States, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed, and collection of the resulting receivable is reasonably assured. Noted below are brief descriptions of the product or service revenues that the Company recognizes in the financial statements contained herein.
The Company recognized the revenue only when the service or products (training software) has been fully delivered or downloaded.
Allowance for doubtful accounts
We maintain an allowance for doubtful accounts to reduce amounts to their estimated realizable value. A considerable amount of judgment is required when we assess the realization of accounts receivables, including assessing the probability of collection and the current credit-worthiness of each customer. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, an additional provision for doubtful accounts could be required. We initially record a provision for doubtful accounts based on our historical experience, and then adjust this provision at the end of each reporting period based on a detailed assessment of our accounts receivable and allowance for doubtful accounts. In estimating the provision for doubtful accounts, we consider: (i) the aging of the accounts receivable; (ii) trends within and ratios involving the age of the accounts receivable; (iii) the customer mix in each of the aging categories and the nature of the receivable; (iv) our historical provision for doubtful accounts;
(v) the credit worthiness of the customer; and (vi) the economic conditions of the customer's industry as well as general economic conditions, among other factors.
Income taxes
We account for income taxes in accordance with SFAS No. 109, Accounting for Income Taxes. SFAS 109 prescribes the use of the liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts and the tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We then assess the likelihood that our deferred tax assets will be recovered from future taxable income and to the extent we believe that recovery is not likely, we establish a valuation allowance. To the extent we establish a valuation allowance, or increase or decrease this allowance in a period, we increase or decrease our income tax provision in our statement of operations. If any of our estimates of our prior period taxable income or loss prove to be incorrect, material differences could impact the amount and timing of income tax benefits or payments for any period.
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The Company operates in several countries. As a result, we are subject to numerous domestic and foreign tax jurisdictions and tax agreements and treaties among the various taxing authorities. Our operations in these jurisdictions are taxed on various bases: income before taxes, deemed profits and withholding taxes based on revenue. The calculation of our tax liabilities involves consideration of uncertainties in the application and interpretation of complex tax regulations in a multitude of jurisdictions across our global operations.
We recognize potential liabilities and record tax liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on our estimate of whether, and the extent to which, additional taxes will be due. The tax liabilities are reflected net of realized tax loss carry forwards. We adjust these reserves upon specific events; however, due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is different from our current estimate of the tax liabilities. If our estimate of tax liabilities proves to be less than the ultimate assessment, an additional charge to expense would result. If payment of these amounts ultimately proves to be less than the recorded amounts, the reversal of the liabilities would result in tax benefits being recognized in the period when the contingency has been resolved and the liabilities are no longer necessary.
Changes in tax laws, regulations, agreements and treaties, foreign currency exchange restrictions or our level of operations or profitability in each taxing jurisdiction could have an impact upon the amount of income taxes that we provide during any given year.
Stock-Based Compensation
The Company adopted SFAS No. 123 (Revised 2004), Share Based Payment ("SFAS No. 123R"), under the modified-prospective transition method on June 1, 2006. SFAS No. 123R requires companies to measure and recognize the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value. Share-based compensation recognized under the modified-prospective transition method of SFAS No. 123R includes share-based compensation based on the grant-date fair value determined in accordance with the original provisions of SFAS No. 123, Accounting for Stock-Based Compensation, for all share-based payments granted prior to and not yet vested as of June 1, 2006 and share-based compensation based on the grant-date fair-value determined in accordance with SFAS No. 123R for all share-based payments granted after June 1, 2006. SFAS No. 123R eliminates the ability to account for the award of these instruments under the intrinsic value method prescribed by Accounting Principles Board ("APB") Opinion No. 25, Accounting for Stock Issued to Employees, and allowed under the original provisions of SFAS No. 123. Prior to the adoption of SFAS No. 123R, the Company accounted for the Company's stock option plans using the intrinsic value method in accordance with the provisions of APB Opinion No. 25 and related interpretations.
The fair value of common stock grant is estimated using the Black-Scholes option pricing model, which uses certain assumptions related to risk - free interest rates, expected volatility, expected life of the common stock options and future dividend. Compensation expense is recorded based upon the values derived from the Black-Scholes option pricing model, based on an expected forfeiture rate that is adjusted for actual expensece. If our Black-Scholes option pricing model assumptions or our actual or estemated forfeiture rate and different in the future, that could materially affect compensaion expense recorded in future periods.
Asset Impairment
We periodically evaluate the carrying value of other long-lived assets, including, but not limited to, property and equipment,intangible assets and goodwill, when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flows from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Significant estimates are utilized to calculate expected future cash flows utilized in impairment analyses. We also utilize judgment to determine other factors within fair value analyses, including the applicable discount rate.
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Recently Issued Accounting Standards
In December 2007, the Financial Accounting Standards Board ("FASB") simultaneously issued SFAS No. 141R, "Business Combinations (2007 Amendment)," and SFAS 160, Noncontrolling Interests in Consolidated Financial Statements, an Amendment of ARB 51." Both standards update United States guidance on accounting for "noncontrolling interests," sometimes referred to as minority interests, which interests represent a portion of a subsidiary not attributable, directly or indirectly, to a parent. FASB and the International Accounting Standards Board ("IASB") have been working together to promote international convergence of accounting standards. Prior to promulgation of these new standards there were specific areas in accounting for business acquisitions in which conversion was not achieved. The objective of both standards is to improve the relevance, comparability, and transparency of the financial information that a reporting entity provides in "business combinations" and consolidated financial statements by establishing accounting and reporting standards. In business combinations it is accomplished by establishing principles and requirements concerning how an "acquirer" recognizes and measures identifiable assets acquired, liabilities assumed, and noncontrolling interest in the acquiree, as well as goodwill acquired in the combination or gain from a bargain purchase; and determines information to be disclosed to enable users to evaluate the nature and effects of business combinations. In consolidated financial statements the standards require: identification of ownership interests held in subsidiaries by parties other than the parent be clearly identified, labeled and presented in consolidated financial position within equity (rather than "mezzanine" between liabilities and equity) separately from amounts attributed to the parent, with net income attributable to the parent and to the minority interest clearly identified and presented on the face of consolidated statements of income. The standards also provide guidance in situations where the parent's ownership interest in a subsidiary changes while the parent retains its controlling financial interest. The standard also provides guidance on recording a gain or loss based on fair value in situations involving deconsolidation of a subsidiary. Entities must provide sufficient disclosures that distinguish between interests of the parent and that of the noncontrolling interest.
Both standards are effective for fiscal years and interims beginning on or after December 15, 2008 (that is January 1, 2009) for entities with calendar years. Earlier adoption is prohibited. The standards shall be applied prospectively as of the beginning of the fiscal year in which initially applied, except for the presentation and disclosure requirements, which shall be applied retrospectively for all periods presented. The Company does not anticipate that the adoption of SFAS No. 141R and No. 160 will have an impact on the Company's overall results of operations or financial position, unless the Company makes a business acquisition in which there is a noncontrolling interest.
In June 2008, the Financial Accounting Standards Board (FASB) issued FASB Staff Position (FSP) Emerging Issues Task Force (EITF) No. 03-6-1, "Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities." Under the FSP, unvested share-based payment awards that contain rights to receive nonforfeitable dividends (whether paid or unpaid) are participating securities, and should be included in the two-class method of computing EPS. This FSP is effective for us beginning July 1, 2009 and the Company does not expect that FSP EITF No. 03-6-1 would have a material impact on the financial statements.
In April 2009, the FASB issued FSP No. FAS 107-1 and APB 28-1, "Interim Disclosures about Fair Value of Financial Instruments" ("FSP FAS 107-1 and APB 28-1"). FSP FAS 107-1 and APB 28-1 require companies to disclose in interim financial statements the fair value of financial instruments within the scope of FASB Statement No. 107, Disclosures about Fair Value of Financial Instruments. However, companies are not required to provide in interim periods the disclosures about the concentration of credit risk of all financial instruments that are currently required in annual financial statements. The fair-value information disclosed in the footnotes must be presented together with the related carrying amount, making it clear whether the fair value and carrying amount represent assets or liabilities and how the carrying amount relates to what is reported in the balance sheet. FSP FAS 107-1 and APB 28-1 also requires that companies disclose the method or methods and significant assumptions used to estimate the fair value of financial instruments and a discussion of changes, if any, in the method or methods and significant assumptions during the period. The FSP shall be applied prospectively and is effective for interim and annual periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009. An entity early adopting FSP FAS 107-1 and APB 28-1 must also early adopt FSP FAS 157-4 as well as FSP FAS 115-2 and FAS 124-2. The Company will adopt the disclosure requirements of this pronouncement for the quarter ended June 30, 2009, in conjunction with the adoption of FSP FAS 157-4, FSP FAS 115-2 and FAS 124-2.
In May 2009, the FASB issued SFAS No. 165, "Subsequent Events" ("SFAS 165"). SFAS 165 sets forth the period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements, and the disclosures that an entity should make about events or transactions that occurred after the balance sheet date. SFAS 165 will be effective for interim or annual period ending after June 15, 2009 and will be applied prospectively. The Company will adopt the requirements of this pronouncement for the quarter ended June 30, 2009. The Company does not anticipate the adoption of SFAS 165 will have an impact on its consolidated results of operations or consolidated financial position.
In June 2009, the FASB issued SFAS No. 167, "Amendments to FASB Interpretation No. 46(R)" ("SFAS 167"), which modifies how a company determines when an entity that is insufficiently capitalized or is not controlled through voting (or similar rights) should be consolidated. SFAS 167 clarifies that the determination of whether a company is required to consolidate an entity is based on, among other things, an entity's purpose and design and a company's ability to direct the activities of the entity that most significantly impact the entity's economic performance. SFAS 167 requires an ongoing reassessment of whether a company is the primary beneficiary of a variable interest entity. SFAS 167 also requires additional disclosures about a company's involvement in variable interest entities and any significant changes in risk exposure due to that involvement. SFAS 167 is effective for fiscal years beginning after November 15, 2009.
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Results of Operations
Our operations for the fiscal years ended May 31, 2009 and 2008 consisted of operations of Beijing Yanyuan (60% indirect ownership interest), China Arts and Science Academy (60% indirect ownership interest), Hartcourt Capital Inc. (100% ownership interest), Hartcourt China, Inc. (100% ownership interest), and Ai-Asia Inc. (100% ownership interest), and Hartcourt's investments in other entities located in Hong Kong and China.
The following discussion and analysis are based on the historical figures and information and reflect our education business. As noted above, the Company is focusing on the growing Chinese vocational training market instead.
Fiscal Year Ended May 31, 2009 Compared to Fiscal Year Ended May 31, 2008
Net Revenue:
Revenues were $2,431,955 for the twelve months ended May 31, 2009 compared to zero for the same period in 2008. The increased revenues were primarily due to revenue generated by Beijing Yanyuan and China Arts & Science Academy, two subsidiaries in which we acquired a 60% equity interest during the twelve months ended May 31, 2009. We currently derive revenues from the following sources:
? educational programs and services, which accounted for 90% of our total net revenues as of May 31, 2009; and
? books and others, which accounted for 10% of our total net revenues as of May 31, 2009.
Cost of revenue:
Cost of revenues was $368,167 for the twelve months ended May 31, 2009 compared to zero for the same period in 2008. The increased cost of revenue was primarily due to costs of revenue attributable to the operations of Beijing Yanyuan and China Arts & Science Academy, two subsidiaries in which we acquired a 60% equity interest during the year ended May 31, 2009. Cost of revenue consisted primarily of printing costs of books and other materials and relevant sales tax.
General and administrative expenses:
Our general and administrative expenses were $1,343,843 for the fiscal year ended May 31, 2009 compared to $1,299,858 for the same periods in 2008, an decrease of $43,985 or 3% compared to the fiscal year ended May 31, 2008. The increase of expenses for the fiscal year ended May 31, 2009 and year ended May 31, 2008 were primarily due to expenses increase by management.
Depreciation and amortization expenses in operating expenses:
Our depreciation and amortization expenses in operating expenses were $20,839 for the fiscal year ended May 31, 2009 compared to $13,510 for the same periods in 2008 or 54% increase. The increase was primarily due to the acquisition of Beijing Yanyuan and China Arts & Science Academy, two subsidiaries in which we acquired a 60% equity interest during the twelve months ended May 31, 2009.
Income (Loss) from Continuing Operations:
Income from continuing operations for the fiscal year ended May 31, 2009 was $699,107, compared to loss amounted to $1,996,356 for the fiscal year ended May 31, 2008. The increased income was primarily due to revenue generated by Beijing Yanyuan and China Arts & Science Academy, two subsidiaries in which we acquired a 60% equity interest during the twelve months ended May 31, 2009.
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Gain on Settlement of Debt:
During the fiscal years ended May 31, 2009 and 2008, the Company has gain on settlement of debt amount of $182,687 and $0, respectively. This amount is due to the negotiation between the Company and non related third party. The third party agreed to settle for a lesser amount as they will continue to do business with the Company.
Discontinued operations:
During the fiscal years ended May 31, 2009 and May 31, 2008, the discontinued operations represent the operating results of Shanghai Huaqing, which was determined by the management to be disposed in 2008.
Income Tax:
The Company has income tax during the fiscal years ended May 31, 2009 compared with prior year, due to the new profitable acquisitions.
Minority interest:
Minority interest represented the profit shared by the minority shareholders of Beijing Yanyuan and China Arts & Science (40%).
Liquidity and Capital Resources:
As shown in our accompanying financial statements, we had a net income of $15,145 for the fiscal year ended May 31, 2009 as compared to a net loss of $1,973,478 for the same period in 2008.
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of the Company's assets and the satisfaction of liabilities in the normal course of business.
The Company has taken certain restructuring steps to provide the necessary capital to continue its operations. These steps included:
� Look for growth opportunities through acquisitions of profitable education businesses;
� Raise additional capital through public offerings or private placements; and
� Take measures to control costs and operating expenses.
Please refer to subsequent even (See financial statement notes 15) for most current acquisition on August 20, 2009 which will give us additional revenue on education business.
Operating activities:
During the fiscal year ended May 31, 2009, net cash provided by operating activities was $664,643, compared to net cash used in operating activities of $638,514 during the fiscal year ended May 31, 2008. The cash used in operating activities in the fiscal year ended May 31, 2009 resulted mainly from income of $15,145 , and an increase of account receivable of $758,055, and an decrease of accounts payable of $316,394, and stock option costs of $309,960, and accrued expenses and other current liabilities of $333,078. The cash used in operating activities in the fiscal year ended May 31, 2008 resulted from loss of $1,973,478 netted against, among other things, stock option costs of $151,060, provision for investment of $70,436, goodwill impairment of $682,988, and accrued expenses and other current liabilities of $432,377.
Investing activities:
Net cash used in investing activities during the fiscal year ended May 31, 2009 were $816,959 compared to net cash provided by investing activities of $524,844 for the fiscal year ended May 31, 2008. The cash used in investing activities during the fiscal year ended May 31, 2009 was mainly due to the loan receivable of $822,551 and cash received upon acquisition of $6,177. The cash provided by investment activities in the fiscal year ended May 31, 2008 was due to the cash received upon disposal of assets of $535,704 and cash decrease due to purchase of property and equipment of $10,860.
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Financing activities:
Cash provided by financing activities during the fiscal year ended May 31, 2009 was $297,719 compared to net cash provided by financing activities of $97,966 during the fiscal year ended May 31, 2008. Net cash provided by financing activities during the fiscal year ended May 31, 2009 was mainly due to proceeds of $900,000 paid by purchasers of shares of our common stock in private placements and $653,139 cash dividend paid to two subsidaries. Cash provided by financing activities during the fiscal year ended May 31, 2008 was primarily due to $38,414 of sales of common stock and proceed of $59,552 from related parties.
. . .
Form 10-K for HARTCOURT COMPANIES INC
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14-Sep-2009
Annual Report
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Management discussion and analysis contains comparisons of the results of our operations for the twelve months ended May 31, 2009, for the 12 months ended May 31, 2008.
THE HARTCOURT COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Fiscal year ended
May 31 (12 months)
2009 2008
Net revenues $ 2,431,955 $ -
Cost of revenues 368,167 -
Gross profit 2,063,788 -
Operating expenses:
General and administrative expenses 1,343,842 1,299,858
Depreciation and amortization 20,839 13,510
Impairment of goodwill - 682,988
Total operating expenses 1,364,681 1,996,356
Income (loss) from operations 699,107 (1,996,356 )
Other income
Foreign currency exchange gain 43,648 -
Gain on settlement of debt 182,687 -
Total other income 226,335 -
Income (loss) from operations before income tax provision
and minority interest 925,442 (1,996,356 )
Provision for income taxes (212,791 ) -
Minority interest, net of taxes (697,506 ) -
Income (loss) from continuing operations 15,145 (1,996,356 )
Discontinued operations:
Gain/(loss) from discontinued operations - 22,878
Income/(loss) from discontinued operations - 22,878
NET INCOME (LOSS) 15,145 (1,973,478 )
OTHER COMPREHENSIVE ITEM:
Foreign currency translation loss (48,226 ) (60,754 )
NET COMPREHENSIVE LOSS $ (33,081 ) $ (2,034,232 )
BASIC AND DILUTED EARNINGS/ (LOSS) PER COMMON SHARE:
Income/(loss) from continued operations basic $ 0.00 $ (0.01 )
Income from discontinued operations basic $ - $ 0.00
Income/(loss) per share basic $ 0.00 $ (0.01 )
Basic weighted average number of shares outstanding 304,501,261 205,761,854
Income (loss) from continued operations diluted $ 0.00 $ (0.01 )
Loss from discontinued operations diluted $ - $ 0.00
Income (loss) per share diluted $ 0.00 $ (0.01 )
Diluted weighted average number of shares outstanding 304,561,261 205,488,066
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The following discussion contains forward-looking statements. Forward looking statements are identified by words and phrases such as "anticipate", "intend", "expect" and words and phrases of similar import. We caution investors that forward-looking statements are only predictions based on our current expectations about future events and are not guarantees of future performance. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements due to risks, uncertainties and assumptions that are difficult to predict, including those set forth in Item 1A above. We encourage you to read those risk factors carefully along with the other information provided in this Report and in our other filings with the SEC before deciding to invest in our stock or to maintain or change your investment. We undertake no obligation to revise or update any forward-looking statement for any reason, except as required by law.
You should read this MD&A in conjunction with the Consolidated Financial Statements and Related Notes in Item 8.
Critical Accounting Policies and Estimates
In preparing our financial statements, we make estimates, assumptions and judgments that can have a significant impact on our net revenue, operating income or loss and net income or loss, as well as on the value of certain assets and liabilities on our balance sheets. We believe that the estimates, assumptions and judgments involved in the accounting policies described below have the greatest potential impact on our financial statements, so we consider these to be our critical accounting policies. Senior management has discussed the development and selection of these critical accounting policies and their disclosure in this Report with the Audit Committee of our Board of Directors. We believe the following critical accounting policies involve the most complex, difficult and subjective estimates and judgments: revenue recognition; allowance for doubtful accounts; income taxes; stock-based compensation; asset impairment.
Revenue Recognition
In accordance with generally accepted accounting principles ("GAAP") in the United States, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed, and collection of the resulting receivable is reasonably assured. Noted below are brief descriptions of the product or service revenues that the Company recognizes in the financial statements contained herein.
The Company recognized the revenue only when the service or products (training software) has been fully delivered or downloaded.
Allowance for doubtful accounts
We maintain an allowance for doubtful accounts to reduce amounts to their estimated realizable value. A considerable amount of judgment is required when we assess the realization of accounts receivables, including assessing the probability of collection and the current credit-worthiness of each customer. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, an additional provision for doubtful accounts could be required. We initially record a provision for doubtful accounts based on our historical experience, and then adjust this provision at the end of each reporting period based on a detailed assessment of our accounts receivable and allowance for doubtful accounts. In estimating the provision for doubtful accounts, we consider: (i) the aging of the accounts receivable; (ii) trends within and ratios involving the age of the accounts receivable; (iii) the customer mix in each of the aging categories and the nature of the receivable; (iv) our historical provision for doubtful accounts;
(v) the credit worthiness of the customer; and (vi) the economic conditions of the customer's industry as well as general economic conditions, among other factors.
Income taxes
We account for income taxes in accordance with SFAS No. 109, Accounting for Income Taxes. SFAS 109 prescribes the use of the liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts and the tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We then assess the likelihood that our deferred tax assets will be recovered from future taxable income and to the extent we believe that recovery is not likely, we establish a valuation allowance. To the extent we establish a valuation allowance, or increase or decrease this allowance in a period, we increase or decrease our income tax provision in our statement of operations. If any of our estimates of our prior period taxable income or loss prove to be incorrect, material differences could impact the amount and timing of income tax benefits or payments for any period.
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The Company operates in several countries. As a result, we are subject to numerous domestic and foreign tax jurisdictions and tax agreements and treaties among the various taxing authorities. Our operations in these jurisdictions are taxed on various bases: income before taxes, deemed profits and withholding taxes based on revenue. The calculation of our tax liabilities involves consideration of uncertainties in the application and interpretation of complex tax regulations in a multitude of jurisdictions across our global operations.
We recognize potential liabilities and record tax liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on our estimate of whether, and the extent to which, additional taxes will be due. The tax liabilities are reflected net of realized tax loss carry forwards. We adjust these reserves upon specific events; however, due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is different from our current estimate of the tax liabilities. If our estimate of tax liabilities proves to be less than the ultimate assessment, an additional charge to expense would result. If payment of these amounts ultimately proves to be less than the recorded amounts, the reversal of the liabilities would result in tax benefits being recognized in the period when the contingency has been resolved and the liabilities are no longer necessary.
Changes in tax laws, regulations, agreements and treaties, foreign currency exchange restrictions or our level of operations or profitability in each taxing jurisdiction could have an impact upon the amount of income taxes that we provide during any given year.
Stock-Based Compensation
The Company adopted SFAS No. 123 (Revised 2004), Share Based Payment ("SFAS No. 123R"), under the modified-prospective transition method on June 1, 2006. SFAS No. 123R requires companies to measure and recognize the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value. Share-based compensation recognized under the modified-prospective transition method of SFAS No. 123R includes share-based compensation based on the grant-date fair value determined in accordance with the original provisions of SFAS No. 123, Accounting for Stock-Based Compensation, for all share-based payments granted prior to and not yet vested as of June 1, 2006 and share-based compensation based on the grant-date fair-value determined in accordance with SFAS No. 123R for all share-based payments granted after June 1, 2006. SFAS No. 123R eliminates the ability to account for the award of these instruments under the intrinsic value method prescribed by Accounting Principles Board ("APB") Opinion No. 25, Accounting for Stock Issued to Employees, and allowed under the original provisions of SFAS No. 123. Prior to the adoption of SFAS No. 123R, the Company accounted for the Company's stock option plans using the intrinsic value method in accordance with the provisions of APB Opinion No. 25 and related interpretations.
The fair value of common stock grant is estimated using the Black-Scholes option pricing model, which uses certain assumptions related to risk - free interest rates, expected volatility, expected life of the common stock options and future dividend. Compensation expense is recorded based upon the values derived from the Black-Scholes option pricing model, based on an expected forfeiture rate that is adjusted for actual expensece. If our Black-Scholes option pricing model assumptions or our actual or estemated forfeiture rate and different in the future, that could materially affect compensaion expense recorded in future periods.
Asset Impairment
We periodically evaluate the carrying value of other long-lived assets, including, but not limited to, property and equipment,intangible assets and goodwill, when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flows from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Significant estimates are utilized to calculate expected future cash flows utilized in impairment analyses. We also utilize judgment to determine other factors within fair value analyses, including the applicable discount rate.
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Recently Issued Accounting Standards
In December 2007, the Financial Accounting Standards Board ("FASB") simultaneously issued SFAS No. 141R, "Business Combinations (2007 Amendment)," and SFAS 160, Noncontrolling Interests in Consolidated Financial Statements, an Amendment of ARB 51." Both standards update United States guidance on accounting for "noncontrolling interests," sometimes referred to as minority interests, which interests represent a portion of a subsidiary not attributable, directly or indirectly, to a parent. FASB and the International Accounting Standards Board ("IASB") have been working together to promote international convergence of accounting standards. Prior to promulgation of these new standards there were specific areas in accounting for business acquisitions in which conversion was not achieved. The objective of both standards is to improve the relevance, comparability, and transparency of the financial information that a reporting entity provides in "business combinations" and consolidated financial statements by establishing accounting and reporting standards. In business combinations it is accomplished by establishing principles and requirements concerning how an "acquirer" recognizes and measures identifiable assets acquired, liabilities assumed, and noncontrolling interest in the acquiree, as well as goodwill acquired in the combination or gain from a bargain purchase; and determines information to be disclosed to enable users to evaluate the nature and effects of business combinations. In consolidated financial statements the standards require: identification of ownership interests held in subsidiaries by parties other than the parent be clearly identified, labeled and presented in consolidated financial position within equity (rather than "mezzanine" between liabilities and equity) separately from amounts attributed to the parent, with net income attributable to the parent and to the minority interest clearly identified and presented on the face of consolidated statements of income. The standards also provide guidance in situations where the parent's ownership interest in a subsidiary changes while the parent retains its controlling financial interest. The standard also provides guidance on recording a gain or loss based on fair value in situations involving deconsolidation of a subsidiary. Entities must provide sufficient disclosures that distinguish between interests of the parent and that of the noncontrolling interest.
Both standards are effective for fiscal years and interims beginning on or after December 15, 2008 (that is January 1, 2009) for entities with calendar years. Earlier adoption is prohibited. The standards shall be applied prospectively as of the beginning of the fiscal year in which initially applied, except for the presentation and disclosure requirements, which shall be applied retrospectively for all periods presented. The Company does not anticipate that the adoption of SFAS No. 141R and No. 160 will have an impact on the Company's overall results of operations or financial position, unless the Company makes a business acquisition in which there is a noncontrolling interest.
In June 2008, the Financial Accounting Standards Board (FASB) issued FASB Staff Position (FSP) Emerging Issues Task Force (EITF) No. 03-6-1, "Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities." Under the FSP, unvested share-based payment awards that contain rights to receive nonforfeitable dividends (whether paid or unpaid) are participating securities, and should be included in the two-class method of computing EPS. This FSP is effective for us beginning July 1, 2009 and the Company does not expect that FSP EITF No. 03-6-1 would have a material impact on the financial statements.
In April 2009, the FASB issued FSP No. FAS 107-1 and APB 28-1, "Interim Disclosures about Fair Value of Financial Instruments" ("FSP FAS 107-1 and APB 28-1"). FSP FAS 107-1 and APB 28-1 require companies to disclose in interim financial statements the fair value of financial instruments within the scope of FASB Statement No. 107, Disclosures about Fair Value of Financial Instruments. However, companies are not required to provide in interim periods the disclosures about the concentration of credit risk of all financial instruments that are currently required in annual financial statements. The fair-value information disclosed in the footnotes must be presented together with the related carrying amount, making it clear whether the fair value and carrying amount represent assets or liabilities and how the carrying amount relates to what is reported in the balance sheet. FSP FAS 107-1 and APB 28-1 also requires that companies disclose the method or methods and significant assumptions used to estimate the fair value of financial instruments and a discussion of changes, if any, in the method or methods and significant assumptions during the period. The FSP shall be applied prospectively and is effective for interim and annual periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009. An entity early adopting FSP FAS 107-1 and APB 28-1 must also early adopt FSP FAS 157-4 as well as FSP FAS 115-2 and FAS 124-2. The Company will adopt the disclosure requirements of this pronouncement for the quarter ended June 30, 2009, in conjunction with the adoption of FSP FAS 157-4, FSP FAS 115-2 and FAS 124-2.
In May 2009, the FASB issued SFAS No. 165, "Subsequent Events" ("SFAS 165"). SFAS 165 sets forth the period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements, and the disclosures that an entity should make about events or transactions that occurred after the balance sheet date. SFAS 165 will be effective for interim or annual period ending after June 15, 2009 and will be applied prospectively. The Company will adopt the requirements of this pronouncement for the quarter ended June 30, 2009. The Company does not anticipate the adoption of SFAS 165 will have an impact on its consolidated results of operations or consolidated financial position.
In June 2009, the FASB issued SFAS No. 167, "Amendments to FASB Interpretation No. 46(R)" ("SFAS 167"), which modifies how a company determines when an entity that is insufficiently capitalized or is not controlled through voting (or similar rights) should be consolidated. SFAS 167 clarifies that the determination of whether a company is required to consolidate an entity is based on, among other things, an entity's purpose and design and a company's ability to direct the activities of the entity that most significantly impact the entity's economic performance. SFAS 167 requires an ongoing reassessment of whether a company is the primary beneficiary of a variable interest entity. SFAS 167 also requires additional disclosures about a company's involvement in variable interest entities and any significant changes in risk exposure due to that involvement. SFAS 167 is effective for fiscal years beginning after November 15, 2009.
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Results of Operations
Our operations for the fiscal years ended May 31, 2009 and 2008 consisted of operations of Beijing Yanyuan (60% indirect ownership interest), China Arts and Science Academy (60% indirect ownership interest), Hartcourt Capital Inc. (100% ownership interest), Hartcourt China, Inc. (100% ownership interest), and Ai-Asia Inc. (100% ownership interest), and Hartcourt's investments in other entities located in Hong Kong and China.
The following discussion and analysis are based on the historical figures and information and reflect our education business. As noted above, the Company is focusing on the growing Chinese vocational training market instead.
Fiscal Year Ended May 31, 2009 Compared to Fiscal Year Ended May 31, 2008
Net Revenue:
Revenues were $2,431,955 for the twelve months ended May 31, 2009 compared to zero for the same period in 2008. The increased revenues were primarily due to revenue generated by Beijing Yanyuan and China Arts & Science Academy, two subsidiaries in which we acquired a 60% equity interest during the twelve months ended May 31, 2009. We currently derive revenues from the following sources:
? educational programs and services, which accounted for 90% of our total net revenues as of May 31, 2009; and
? books and others, which accounted for 10% of our total net revenues as of May 31, 2009.
Cost of revenue:
Cost of revenues was $368,167 for the twelve months ended May 31, 2009 compared to zero for the same period in 2008. The increased cost of revenue was primarily due to costs of revenue attributable to the operations of Beijing Yanyuan and China Arts & Science Academy, two subsidiaries in which we acquired a 60% equity interest during the year ended May 31, 2009. Cost of revenue consisted primarily of printing costs of books and other materials and relevant sales tax.
General and administrative expenses:
Our general and administrative expenses were $1,343,843 for the fiscal year ended May 31, 2009 compared to $1,299,858 for the same periods in 2008, an decrease of $43,985 or 3% compared to the fiscal year ended May 31, 2008. The increase of expenses for the fiscal year ended May 31, 2009 and year ended May 31, 2008 were primarily due to expenses increase by management.
Depreciation and amortization expenses in operating expenses:
Our depreciation and amortization expenses in operating expenses were $20,839 for the fiscal year ended May 31, 2009 compared to $13,510 for the same periods in 2008 or 54% increase. The increase was primarily due to the acquisition of Beijing Yanyuan and China Arts & Science Academy, two subsidiaries in which we acquired a 60% equity interest during the twelve months ended May 31, 2009.
Income (Loss) from Continuing Operations:
Income from continuing operations for the fiscal year ended May 31, 2009 was $699,107, compared to loss amounted to $1,996,356 for the fiscal year ended May 31, 2008. The increased income was primarily due to revenue generated by Beijing Yanyuan and China Arts & Science Academy, two subsidiaries in which we acquired a 60% equity interest during the twelve months ended May 31, 2009.
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Gain on Settlement of Debt:
During the fiscal years ended May 31, 2009 and 2008, the Company has gain on settlement of debt amount of $182,687 and $0, respectively. This amount is due to the negotiation between the Company and non related third party. The third party agreed to settle for a lesser amount as they will continue to do business with the Company.
Discontinued operations:
During the fiscal years ended May 31, 2009 and May 31, 2008, the discontinued operations represent the operating results of Shanghai Huaqing, which was determined by the management to be disposed in 2008.
Income Tax:
The Company has income tax during the fiscal years ended May 31, 2009 compared with prior year, due to the new profitable acquisitions.
Minority interest:
Minority interest represented the profit shared by the minority shareholders of Beijing Yanyuan and China Arts & Science (40%).
Liquidity and Capital Resources:
As shown in our accompanying financial statements, we had a net income of $15,145 for the fiscal year ended May 31, 2009 as compared to a net loss of $1,973,478 for the same period in 2008.
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of the Company's assets and the satisfaction of liabilities in the normal course of business.
The Company has taken certain restructuring steps to provide the necessary capital to continue its operations. These steps included:
� Look for growth opportunities through acquisitions of profitable education businesses;
� Raise additional capital through public offerings or private placements; and
� Take measures to control costs and operating expenses.
Please refer to subsequent even (See financial statement notes 15) for most current acquisition on August 20, 2009 which will give us additional revenue on education business.
Operating activities:
During the fiscal year ended May 31, 2009, net cash provided by operating activities was $664,643, compared to net cash used in operating activities of $638,514 during the fiscal year ended May 31, 2008. The cash used in operating activities in the fiscal year ended May 31, 2009 resulted mainly from income of $15,145 , and an increase of account receivable of $758,055, and an decrease of accounts payable of $316,394, and stock option costs of $309,960, and accrued expenses and other current liabilities of $333,078. The cash used in operating activities in the fiscal year ended May 31, 2008 resulted from loss of $1,973,478 netted against, among other things, stock option costs of $151,060, provision for investment of $70,436, goodwill impairment of $682,988, and accrued expenses and other current liabilities of $432,377.
Investing activities:
Net cash used in investing activities during the fiscal year ended May 31, 2009 were $816,959 compared to net cash provided by investing activities of $524,844 for the fiscal year ended May 31, 2008. The cash used in investing activities during the fiscal year ended May 31, 2009 was mainly due to the loan receivable of $822,551 and cash received upon acquisition of $6,177. The cash provided by investment activities in the fiscal year ended May 31, 2008 was due to the cash received upon disposal of assets of $535,704 and cash decrease due to purchase of property and equipment of $10,860.
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Financing activities:
Cash provided by financing activities during the fiscal year ended May 31, 2009 was $297,719 compared to net cash provided by financing activities of $97,966 during the fiscal year ended May 31, 2008. Net cash provided by financing activities during the fiscal year ended May 31, 2009 was mainly due to proceeds of $900,000 paid by purchasers of shares of our common stock in private placements and $653,139 cash dividend paid to two subsidaries. Cash provided by financing activities during the fiscal year ended May 31, 2008 was primarily due to $38,414 of sales of common stock and proceed of $59,552 from related parties.
. . .
Bid: 0,014 $; Ask: 0,021 $. Wußte schon gar nicht mehr wie eine 2 aussieht...
Gustav
@ CE: Aber mal ganz ehrlich, es kann doch gar nicht mehr schlechter als jetzt kommen!? Wir dümpeln seit Monaten bei 1 Cent herum, weil auch kein Cash vorhanden ist und die Zahl der OS auch ausgezeizt ist.
Ich habe schon die Hoffnung, dass die Zahlen von den beiden HRCT Subs und natürlich auch von Sino-Canada so gut sind, dass wir nicht nur ordentliche Umsätze sondern auch Gewinne sehen werden. Und wenn der Markt 1 Jahr lang relativ eng ist, weil fast alle Aktien gesperrt sind, könnte es doch durchaus auch mal kräftiger nach oben gehen!?
Gut, ich möchte dann nicht wissen, was passiert, wenn die Sperrfrist abläuft...! Außerdem kennen wir ja leider die DA`s von HRCT...! Aber es bleibt spannend!
Gustav
@ Rattle: Du hattest doch gar keinen Urlaub bei uns eingereicht, wie ist das bloß möglich...?? Bin gespannt, was du dazu zu sagen hast. Streiche Büroarbeit, setze HRCT-Analyse...
Gustav
Wir müssen uns wahrscheinlich lösen von der Vorstellung, dass sich der Kurs von 1 Cent auf 1 Dollar verhundertfacht! Aber endlich kommt doch wieder Bewegung in die Aktie. Natürlich besitzen wir deutlich weniger Aktien und der Kurs wird nicht völlig explodieren von dem höheren Level. Aber ich verspreche mir schon eine langfristige, gesunde Aufwärtsbewegung bei steigenden Umsätzen und Gewinnen der neuen Firma!
Hauptsache, dass definitive agreement scheiter nicht noch irgendwo
Gustav
Der "Startkurs" wird bestimmt gar nicht bei 0,88 liegen, sondern (hoffentlich) weit höher. Wenn jetzt wieder etwas Phantasie aufkommt und HRCT z.B. auf 4 Cent steigen würde, hätten wir schon einen Startkurs von 3,20. Da die 86 % Aktien für 1 Jahr gesperrt sind, sind ja nur ca. 5 Mio Aktien im Umlauf. Wenn die Zahlen vielversprechend sind, kann eine höhere Nachfrage dem Kurs relativ schnell Flügel verleihen...! Ich behaupte mal, die Tage an der alten amerikanischen "over the counter"-Börse sind gezählt )
Gustav
ich glaube bis zum 31.5.2010 könnte es sich max. ziehen, wenn ich es richtig gelesen habe.
Gustav
any pre-prices of HRCT available?
Gustav
Sino-Canada akzeptiert Aktien und bekommt überhaupt kein Cash. Insofern scheinen sie ja von HRCT sehr überzeugt zu sein. Man kann also mit positiven Zahlen seitens HRCT in den nächsten Tagen rechnen.
Vielleicht wird es ja für beide eine win-win Situation, bei der wir aber auch endlich mal profitieren...
Gustav
Habe ich auf der Website www.sinocanada.cn auch gelesen. Jährlich zahlen die Studenten zwischen 65.000-75.000 RMB, das sind ca. € 7.000! Wenn sie jetzt 800 Studenten haben und dann auch noch von einer "expanding rate about 50 %" sprechen, hört sich das wirklich sehr vielversprechend an. Dann würden die Umsatzzahlen aber ganz schnell steigen
Gustav
Du meinst, wir sollten es doch noch einmal erleben an der Na... zu sein!??
Bin heute gespannt, wie sich der Kurs heute entwickelt in den USA.
Gustav
Absolut!! HRCT dümpelte ja völlig rum, weil ihnen die Hände gebunden waren, da sie überhaupt kein Cash hatten und die Zahl der OS schon viel zu hoch war. Insofern ist jede Veränderung für uns wohl gut. Ich kann nur das weitere Kurspotential überhaupt nicht einschätzen, aber wir sind ja geduldige Aktionäre...! Über einen shareholder letter von HRCT würde ich mich nicht nur freuen, sondern es eigentlich auch erwarten, aber bei HRCT weiß man ja nie...
P.S. In Frankfurt scheint jemand von diesen news begeistert zu sein...
Gustav
Reverse Stock Split
In addition, the definitive agreement contemplates that Hartcourt will effect a 1 for 80 reverse stock split in connection with the transaction, to take effect upon Hartcourt's reincorporation in Delaware as Maple China Education Incorporated immediately prior to the closing of the share exchange, subject to the approval of the Hartcourt stockholders
Wenn die HRCT Aktionäre vor einigen Monaten schon den 1:2 Split verweigert haben, können die HRCT Lemminge nicht auch diesen Split verhindern??
Gustav
Irgendwie muss man wirklich erstmal den 1:80 Split verdauen, den sie ja eigentlich nie machen wollten. Und über einen RS Split hat man bis jetzt ja auch nicht viel positives gehört. Trotzdem waren die letzten Monate ziemlich lähmend, vielleicht kommt jetzt mal wieder etwas Fahrt auf. Bleiben wir dann eigentlich an der OTCCB?
Gustav
@ Rattle: Hast du eigentlich eine Antwort auf deine mail erhalten?? So ein richtiges Update der website haben sie ja noch nicht hinbekommen...
Wann kommen denn eigentlich die Zahlen? Sollen die nicht am 15.8. kommen, also dann heute? Oder haben sie schon wieder eine Verlängerung beantragt??
Gustav
Wahrscheinlich kommt wieder diese "periodical summary" der letzten beiden Male, also nahezu unverändert! Wenn sie überhaupt reagieren...
Gustav
@ Rattle: Wo die agressive Übernahmepolitik, die sie angekündigt hatten, bleibt; was es mit den 100 k Verkäufen zu tun hatte; wie es mit institutionellen Anlegern nun aussieht; wie man mit so wenig Cash und vielen Aktien im Umlauf nach vorne kommen möchte; wo allgemein die Probleme liegen und ob sie nicht mal einen ehrlichen shareholder letter schreiben können, wo sie die augenblicklichen Schwierigkeiten/Verzögerungen erläutern....!
Mehr wollte ich eigentlich nicht wissen...
Gustav
Dear Sir,
We appreciate your continual support. The company operates well, please kindly be patient.
Best Regards
Hartcourt Company Inc.
Also, ihre emails checken sie noch von Zeit zu Zeit...! Hatte eine email geschrieben, dass ich ihre Papiere jetzt 10 Jahre habe und mit der Entwicklung und Kommunikation mit den Aktionären nicht 100 %-ig einverstanden bin...! Eigentlich hatte ich noch ein paar Fragen, aber immerhin gab es eine Antwort.
Schönes Wochenende
Gustav
aber kann man den Kurs wirklich mit so geringem Volumen wie gestern auf Dauer nach oben ziehen? Da muß wahrscheinlich schon etwas mehr Nachfrage her! Mich soll es aber nicht stören...
Gustav
Wußte gar nicht mehr, wie grün aussieht...! Hoffentlich entfernen wir uns weiter vom "Sub-Penny"-Bereich!!!
Gustav
Laß den armen Franz da raus...
Ich kann dich voll verstehen!! Nur bin ich nicht in der glücklichen Lage bei 5-6 Eurocent wieder chico zu sein....!
Gruß, Gustav
@wallerx: Das ist auschließlich Frust und Rache bei asia! Er postet doch fast nur im deutschen Bord. Hier wird der Preis aber nicht gemacht. Die Umsätze sind doch lächerlich, zur Zeit steigt keiner ein. Die schon investiert sind, halten die Aktie, die anderen steigen nicht ein, weil es nichts tolles zu berichten gibt!
Gustav
mail von lucky5ive aus dem US Board:
I e-mailed Hartcourt just yesterday to clarify the loans in question..They responded in less than one day and their response follows...Seems the two profitable subs of Hartcourt have hired a sales force..(I like the last sentence, "realize more revenue in the FUTURE)....Go Hartcourt...
Hi.XXX
Thanks for your continual support.
The two profitable subsidiaries provided loans to a few sales agents to promote the training course and bachelor diploma. The sales agents are committed to expanding training institutions in China, recruiting more students to be trained by the two subsidiaries. The reason for loans is to increase the market share in education field and realize more revenue in the future.
1.
Loan to sales agent, interest free, secured and amount due February 28, 2010--Beijing yanyuan loaned to agent for promotion on February 20 2009.
$175,492
2.
Loan to sales agent, interest free, secured and amount due January 15, 2010--Beijing yanyuan loaned to agent for promotion on Jan 10 2009.
$175,492
3.
Loan to sales agent, interest free, secured and amount due February 15, 2010—China Arts & Science Academy loaned to agent for promotion on Jan 15 2009.
$190,119
4.
Loan to sales agent, interest free, secured and amount due April 31, 2009---Beijing yanyuan loaned to agent for promotion on Oct 31 2008.
$131,619
5.
Loan to sales agent, interest free, secured and amount due May 31, 2009---Beijing yanyuan loaned to agent for promotion on Nov 31 2008.
$124,307
Total
$797,029
All loans are secured by pledge of building license owned by the agents.
It is not relevant with the $800,000.( I had asked if they used the $800,000 private investments for these loans.)
Best Regards
Hartcourt Company Inc.
bei uns gibt es halt nicht nur schwarz und weiß!!!
Gustav
@ Franz: Und über Kunst läßt sich ja bekanntlich streiten...! Das Problem an der Sache ist, dass ich seit 99 warte und nicht erst in diesem Jahr eingestiegen bin..! Langsam könnte HRCT mal seinen Läufer in die Hand nehmen!!!!
Gustav
@ Beamter: 100 % Zustimmung!! Seit Jahren wird hier shareholder value gepredigt, aber es vergeht ein Monat nach dem anderen, wo nichts passiert! Es ist wirklich frustrierend! Ehe wir uns versehen, ist das Jahr wieder um und wir stehen immer noch bei 1 Cent...
Ein ebenfalls sehr genervter Gustav
@ Rattle: Die Zahlen und Bedingungen (schlechte wirtschaftliche Umfeld) waren HRCT doch bekannt. Hast Du eine Ahnung, warum sie trotzdem neulich beim "Quartalsletter" von einer agrressiven Übernahmepolitik gesprochen haben, wenn sie so klamm sind und schon lange keine Übernahme mehr getätigt haben? Irgendwie hoffe ich immer noch auf einen zahlungskräftigen Investor, aber vielleicht auch einfach nur naiv von mir...
Gustav
@Franz: lol!!! Sowohl das Foto als auch die (berechtigte) Frage, ob Torres sich einen neuen Namen gegeben hat...
Gustav
FORM filed: NT 10Q
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=6266475
Kennen wir doch von früher...
Gustav
Verstehe ich das richtig, doch kein Split??
Form 8-K for HARTCOURT COMPANIES INC
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7-Apr-2009
Change in Directors or Principal Officers, Other Events
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
The shareholders of The Hartcourt Companies Inc. elected five directors at the annual shareholders' meeting held on April 5, 2009. The Company's Board of Directors consists of Dr. Wilson Li, Mr. Victor Zhou, Mr. Zhenyu Hu, Mr. George Xu and Mr. Changzhi Ju.
Item 8.01 Other Items
The shareholders of The Hartcourt Companies Inc. voted on 2 proposals at the annual shareholders' meeting held on April 5, 2009.
1. To elect five directors of the Company. The nominees for election are Dr.
Wilson Li, Mr. Victor Zhou, Mr. Zhenyu Hu, Mr. George Xu and Changzhi Ju. According to the voting results, the five nominees were elected to be directors of the Company.
2. To effect a 2:1 reverse split of the issued and outstanding common shares.
According to the voting results, the company will not effect a 2:1 reverse split of the issued and outstanding common shares
@ iqiq: Ich habe eine email an HRCT geschickt und gefragt, ob sie nicht eine "summary" vom SHM posten können. Allerdings interessiert sie das ungefähr genauso, als würde in Shanghai-Süd ein Beutel mit Reis umfallen...
Gruss
Gustav
Es geht bergauf, heute hat der 100.000 ich-kaufe-täglich-HRCT-Aktien-Geist schon 0,013 $ statt 0,011 $ bezahlt...
Gustav
Du mußt schon versuchen richtig zu lesen!! Er sagt nicht, dass man jetzt nachkaufen soll!
Gustav
@ Rattle: Nein, warum?? Die sind doch auch in den USA vertickt worden. Kauft einer von euch drüben seine Aktien?
Gustav
....zu früh gefreut...! Bingo, da ist der Verkauf schon wieder! Ehrlich gesagt nervt es langsam kolossal!!!!
Gustav