Replies to post #59173 on Hartcourt Companies (fka HRCT)

[edp73]

Q:What's going on with the SEC lawsuit? Did we have a conference on June 1st?

A:On June 1st, the Court has established the trial date to be 30 March 2005. Until then, the legal proceedings will continue as usual with discoveries and depositions from both parties etc…. However, we have already written down $1.3 million against the worst scenario for Hartcourt. There is no longer any downside risk relating to this case. However, since our legal counsel is very optimistic on a favorable outcome, we think of it as a good chance to re-capture the earnings we had written off.