Hartcourt Companies (fka HRCT)

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hrct has more collection problems

'In 2005, following the termination of the acquisition of a 51% equity interest in Beijing Ying Zhi He Lian Information Technology Co., Ltd, (YZHL), YZHL returned to us RMB4,000,000 out of the RMB5,000,000 cash consideration we previously paid to them. The remaining RMB1,000,000 is still unpaid as of the date of filing this quarterly report.

In 2006, Hartcourt Hi-Tech Investment (Shanghai) Inc. filed a compliant against YZHL for the return of the remaining RMB 1,000,000 (US$131,844) owed to us. On December 19, 2006, Beijing Shi Jing Shan District Court entered the Judgment in this case. The court found that Hartcourt Hi-Tech Investment (Shanghai) Inc. had no right to file the compliant against YZHL unless such complaint was made by Hartcourt Capital, Inc., which signed the purchase agreement to acquire the 51% equity interest in YZHL in 2004.

After reviewing the case with our attorney, Hartcourt Capital, Inc., as the plaintiff, has appealed to Beijing People’s court on August 10, 2007 against YZHL to return to us the remaining RMB1,000,000 that is owed to us.'