Hartcourt Companies (fka HRCT)

[brdsng]

Re: SEC case. No one is more disappointed than I at current share price but a couple of notes on the SEC case. First, it may not be in HRCT's interest (or ability) to comment on the case's progress. Second, none of us know what the SEC is seeking (i.e. what potential penalties and damages beyond initial liabiitlity). This combined with relative strength of the case determines if and at what price this can be settled. Third, wouldn't be so sanguine that $1.3mm is upper limit of liability (would guess auditors required this as "reasonable" reserve against likely potential cost).