U.S. SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C. 20549

                               FORM 10-QSB

(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2002

                                      OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM
______________ TO ______________


                       COMMISSION FILE NUMBER: 0-26668


                         DIAMOND HITTS PRODUCTION, INC.
           (Exact name of Registrant as specified in its charter)


                Nevada                           65-0036344
(State or jurisdiction of incorporation        I.R.S. Employer
           or organization)                   Identification No.)

5753 Santa Ana Canyon  Road, Suite G-243, Anaheim Hills, California   92807
(Address of principal executive offices)                           (Zip Code)

                Registrant's telephone number:  (888) 522-4597

        Securities registered pursuant to Section 12(b) of the Act: None

       Securities registered pursuant to Section 12(g) of the Act: Common
                          Stock, $0.001 Par Value

     Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the Registrant was required to file such reports),
and (2) been subject to such filing requirements for the past 90 days.
Yes     X       No            .

     As of June 30, 2002, the Registrant had 276,597,231 shares of
common stock issued and outstanding.

     Transitional Small Business Disclosure Format (check one): Yes    No X.

                                TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION                                         PAGE

     ITEM 1.  FINANCIAL STATEMENTS

              BALANCE SHEET AS OF
              JUNE 30, 2002                                               3

              STATEMENTS OF OPERATIONS
              FOR THE SIX AND THREE MONTHS ENDED
              JUNE 30, 2002 AND JUNE 30, 2001                            4

              STATEMENTS OF CASH FLOWS
              FOR THE SIX MONTHS ENDED
              JUNE 30, 2002 AND JUNE 30, 2001                            5

              NOTES TO FINANCIAL STATEMENTS                              6

     ITEM 2.  PLAN OF OPERATION                                          8

PART II - OTHER INFORMATION

     ITEM 1.  LEGAL PROCEEDINGS                                         12

     ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS                 15

     ITEM 3.  DEFAULTS UPON SENIOR SECURITIES                           15

     ITEM 4.  SUBMISSION OF MATTERS TO A VOTE
              OF SECURITY HOLDERS                                       16

     ITEM 5.  OTHER INFORMATION                                         16

     ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K                          16

SIGNATURE                                                               17

PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCAL STATEMENTS.

                      DIAMOND HITTS PRODUCTION, INC.
                     (formerly Hitsgalore.com, Inc.)
                             BALANCE SHEET
                             JUNE 30, 2002
                              (Unaudited)

                                ASSETS
                                                                    2002

Total assets                                                     $        0

LIABILITIES AND STOCKHOLDERS' DEFICIT

Short-term borrowings from related parties
 less unamortized debt discount of $0                               805,302
Payroll tax arrearage                                                75,000
Accounts payable and accrued expenses                             1,163,769
Convertible note                                                     54,571
Merger related liabilities                                        2,791,836

Total liabilities                                                 4,890,478

Commitments and contingencies
Stockholders' deficit:
Class B convertible preferred stock, stated
 value and liquidation preference - $1.00
 per share; authorized 10,000,000 shares,
 issued and outstanding 100,000 shares                             54,764

Common stock, $0.001 par value; authorized
 550,000,000 shares; issued and outstanding
 276,597,231 shares                                               276,597
Additional paid-in capital                                      8,395,649
Accumulated deficit                                           (13,617,488)
Total stockholders' deficit                                    (4,890,478)

Total liabilities and stockholders' deficit                             0

                        See Notes to Financial Statements

                         DIAMOND HITTS PRODUCTION, INC.
                        (formerly Hitsgalore.com, Inc.)
                           STATEMENTS OF OPERATIONS
                                 (Unaudited)

                                      Six Months Ended   Three Months Ended
                                          June 30             June 30
                                      2002        2001     2002         2001

Net revenues                          $    -    $       -  $     -  $        -
Costs and expenses:
 General and administrative expenses    38,483   1,338,959   12,883    154,902
Interest expense                       174,532     318,186   87,266    113,239
                                       213,015   1,657,145  100,149    268,141

Loss from continuing operations, net of
income tax benefit of $22,000 for the
three months ended June 30, 2001      (213,015) (1,657,145) (100,149) (246,141)

Income (loss) from discontinued operations,
 less income taxes of $22,000 for the
 three months ended June 30, 2001            0  (1,344,791)        0    38,753

Net loss                              (213,015) (3,001,936) (100,149) (207,388)

Basic and diluted loss per share:
Income (loss) from continuing
 Operations                              (0.00)      (0.01)    (0.00)    (0.00)
Income (loss) from discontinued
 Operations                               0.00       (0.01)     0.00     (0.00)

Weighted average number of shares
 outstanding:                   275,565,232  152,103,346 271,352,173 184,315,368

                           See Notes to Financial Statements

                             DIAMOND HITTS PRODUCTION, INC.
                            (formerly Hitsgalore.com, Inc.)
                                STATEMENTS OF CASH FLOWS
                                      (Unaudited)

                                                       Six Months Ended
                                                            June 30
                                                        2002       2001

Net cash used in operating activities                $  (207,765) $   (12,998)
Increase in accounts payable                             207,765            0
Cash required from operations
Cash flows from investing activities:
 Capital expenditures                                          -      (12,998)

Net cash used in investing activities                          -            -

Cash flows from financing activities:
 Proceeds from issuance of stock and exercise
 of options and warrants                                       0        5,000
Borrowings from and (payments to)
 Stockholders and officers, net                                0        8,305

Net cash provided by financing activities                      0       13,305

Net increase in cash                                           0          307

Cash at beginning of period                                    0           25

Cash at end of period                                          0          332

Supplemental disclosure of Cash Flow Information and Non-Cash
Investing and Financing Activities.
Accounts receivable from sale of assets                        0       20,000
Issuance of common stock for services                      5,250    2,705,406
Issuance of common stock in exchange for debt                  0        3,008

Cash paid during the period for:
 Interest                                                      -          737
 Income taxes                                                  -            -

                      See Notes to Financial Statements

                       DIAMOND HITTS PRODUCTION, INC.
                      (formerly Hitsgalore.com, Inc.)
                       NOTES TO FINANCIAL STATEMENTS
                               (Unaudited)

NOTE 1 - THE REGISTRANT AND BUSINESS

Effective as of February 16, 2001, the Registrant, through its new
management, determined that the Registrant's "dot com" assets were not
cost effective and sold a majority of such assets for $20,000.
Effective as of March 29, 2001, the Registrant changed its name from
Hitsgalore.com, Inc. to Diamond Hitts Productions, Inc.  The
Registrant is a Nevada corporation.

The Registrant's current business is to seek and acquire profitable
businesses and liquidate, modify, extend or otherwise satisfy the
indebtedness of the Registrant.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

The accompanying financial statements have been prepared in accordance
with generally accepted accounting principals consistent in all
material respects with those applied in the Company's Annual Report on
Form 10-K for the year ended December 31, 2001.  Accordingly, they do
not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.  The
interim financial information is unaudited, but reflects all normal
adjustments that are, in the opinion of management, necessary to
provide a fair statement of results for the interim periods presented.

Loss Per Share.

The weighted average number of shares outstanding during the six
months ended June 30, 2002 and 2001 were 275,565,232 shares and
152,103,346 shares, respectively.  For each of the periods presented,
the including of potentially dilutive securities in the calculation of
loss per share would have been anti-dilutive, thus both basic and
diluted loss per share are the same.

NOTE 3 - GOING CONCERN

The accompanying financial statements have been prepared on a going
concern basis, which contemplates the realization of assets and
liquidation of liabilities in the ordinary course of business.  The
Registrant incurred operating losses of approximately $213,000 in the
first six months of 2002 and $3,000,000 in the previous comparable
fiscal year.  As of June 30, 2002, the Registrant had a working
capital deficiency of approximately $4.9 million and is subject to
numerous judgments awarded by courts of competent jurisdiction.  The
amounts of outstanding judgments awarded against the Registrant are
included as liabilities in the accompanying balance sheet, however,
the Registrant is currently unable to satisfy these judgments or enter
into any settlement agreements due to its lack of financial resources.
In the absence of a sufficient amount of cash flows from future
operations or from financing transactions, the Registrant would be
required to seek other alternatives, including a sale or merger or a
liquidating trust as outlined in Note 6 A "Subsequent Events."  These
conditions raise substantial doubt about the Registrant's ability to
continue as a going concern.  The financial statements do not include
any adjustments that might result from the outcome of these
uncertainties.  Management's plans in this regard are set forth in
Note 6 "Subsequent Events."  There can be no assurance that management
will be successful in carrying out its plans.

NOTE 4 - SHORT-TERM BORROWINGS FROM RELATED PARTIES

As of June 30, 2002, short-term borrowings from related parties
consist of $701,500 payable under a Consolidated Promissory Note
Agreement and $103,802 payable under a convertible promissory note
agreement, dated as of September 20, 2000.

As of June 30, 2002, the Company is in violation of the payment terms
and the conversion privilege of the $103,802 note contained in these
debt agreements.  The company is contesting the convertibility of this
note alleging that the transaction results in usurious interest.
Nevertheless, the Company has set aside the necessary restricted
shares to fulfill its obligation, if required.

NOTE 5 - STOCKHOLDERS' EQUITY

During the six months ended June 30, 2002, the Registrant issued
5,000,000 unrestricted shares as compensation to its president and
250,000 unrestricted shares to a previous creditor.  See Note 6A
"Subsequent Events" for the 265,000,000 common shares issued to the
trustee of the newly created Hitsgalore/Systems Communication
Creditors Trust.  The issuance of the above shares brings the total
common shares issued and outstanding to 541,597,213. The issuance of
the 265,000,000 shares will be accounted for in the third quarter of
2002.

NOTE 6 - SUBSEQUENT EVENTS

Subsequent to June 30, 2002 the Company engaged in two transactions:

A.  On July 3, 2002, the Registrant issued a total of 265,000,000
shares of restricted common stock to Gary Borglund as Trustee of
the Hitsgalore/Systems Communication Creditors Trust.  This now
constitutes 48.93% of the total issued and outstanding common
stock of the Registrant of 541,597,231 as of July 3, 2002.  These
shares were issued in connection with this trust, established on
June 26, 2002, in order to benefit the combined creditors of
Hitsgalore.com (now known as Diamond Hitts Production, Inc.) and
Systems Communication, Inc.  All creditors of Hittsgalore and/or
Systems Communications are able to elect to receive the
liquidated proceeds of the trust.  The Registrant's common stock
is to be liquidated under the trust over a period of 5 years
commencing a year from the date of issuance; no more than 20% of
the shares can be sold in any one year.

B.  One July 12, 2002, the Registrant entered into an Acquisition
Agreement to acquire 100% of the outstanding shares of Secure For
Sure, Inc., a Nevada corporation (SFS").  The purchase price of
all rights, title and interest in and to 100% of the outstanding
shares of SFS is the following:

1.  $5,000 at closing

2.  10% royalty on all sales for a period of 5 years.

3.  884,000 individual postage stamps issued by the Aden States
    of South Arabia, such stamps to be held in escrow for a year
    and thereafter be delivered to the seller provided that;

a)  The various proprietary software products of the SFS are
proved to be of merchantable quality, free of defects,
and fit for their intended use to the Registrant's
satisfaction; and

b)  The sales of the SFS's various software products exceed
$1,000,000 for the 12 months ending August 31, 2003.

The above Aden stamps have not been given any value on the
Company's books.

SFS owns a product called Verified Security, which is a suite of
computer security programs.  This company was previously operated
as a proprietorship, then incorporated on June 18, 2002 as SFS.

ITEM 2.  PLAN OF OPERATION.

The following discussion should be read in conjunction with the
financial statements of the Registrant and notes thereto contained
elsewhere in this report.

Results of Operations.

(a)  Net Revenues.

     The Company is inactive having no revenue in the first six months
of 2002 and 2001.

(b)  Selling, General and Administrative Expenses.

     As mentioned above, the Company's inactive status makes
comparison irrelevant.  The $38,483 expensed in the six months is
comprised of consulting expense, $5,250 and professional fees,
primarily accounting, of $33,233.

(c)  Interest Expense.

     Interest expense for the six months of 2002 consists of interest
on merger related liabilities ($139,592) and short-term borrowings of
($34,940).  The same components were in the six months of 2001 plus
the amortization of debt discount that accounts for the decrease in
interest expense of $143,654.

Liquidity and Capital Resources.

     Hitsgalore.com, a closely held Nevada corporation ("Old
Hitsgalore.com"), was organized in July 1998 to develop a porn free,
or adult content free, business-to-business Internet search engine.
On March 19, 1999, Old Hitsgalore merged, in a reverse merger
transaction, with Systems Communication, Inc., a Florida corporation,
and the name of the surviving corporation was changed to
Hitsgalore.com, Inc.  Effective as of February 16, 2001, the
Registrant, through its new management, determined that the
Registrant's "dot com" assets were not cost effective and sold a
majority of such assets for $20,000.  Effective as of March 29, 2001,
the Registrant changed its name from Hitsgalore.com, Inc. to Diamond
Hitts Production, Inc., a Florida corporation.  In September 2001 the
Registrant re-domiciled and became a Nevada corporation.

     The Registrant assumed a substantial amount of indebtedness in
connection with the merger between Hitsgalore.com, a closely held
Nevada corporation, and Systems Communication, Inc., in March 1999.
In addition, the Registrant has incurred operating losses in each of
the last two fiscal years and in the first six months of 2002, and has
discontinued the payment or conversion of outstanding convertible debt
securities and has deferred the payment of trade and other
liabilities.  In February 2001 the Registrant, after considering the
current state of the Internet industry, market conditions and other
factors, disposed of its "dot com" business.  The Registrant's current
business is to reinvent itself, under the direction of a new
management team.  As of June 30, 2002, the Registrant is not
conducting any revenue generating activities, has a stockholders'
deficit of approximately $4.9 million and has no assets.

     New management believes that it has the ability to attract the
necessary capital to carryout the transformation of the Registrant,
and has targeted certain operating companies that may have an interest
in entering into a business combination or similar transaction.  In
addition, the Registrant believes that its creditors are willing to
give the Registrant time to reinvent the business and negotiate the
terms upon which such debts are to be repaid or satisfied.  In this
regard see Note 6 to the financial statements "Subsequent Events."

Capital Expenditures.

     There were no capital expenditures during the six months ended
June 30, 2002.

Twelve-Month Plan of Operation.

     The Registrant intends to take advantage of any reasonable
business proposal presented which management believes will provide the
Registrant and its stockholders with a viable business opportunity.
The board of directors will make the final approval in determining
whether to complete any acquisition, and unless required by applicable
law, the articles of incorporation or bylaws or by contract,
stockholders' approval will not be sought.

     The investigation of specific business opportunities and the
negotiation, drafting, and execution of relevant agreements,
disclosure documents, and other instruments will require substantial
management time and attention and will require the Registrant to incur
costs for payment of accountants, attorneys, and others.  If a
decision is made not to participate in or complete the acquisition of
a specific business opportunity, the costs incurred in a related
investigation will not be recoverable.  Further, even if an agreement
is reached for the participation in a specific business opportunity by
way of investment or otherwise, the failure to consummate the
particular transaction may result in the loss to the Registrant of all
related costs incurred.

     Currently, management is not able to determine the time or
resources that will be necessary to locate and acquire or merge with a
business prospect.  There is no assurance that the Registrant will be
able to acquire an interest in any such prospects, products or
opportunities that may exist or that any activity of the Registrant,
regardless of the completion of any transaction, will be profitable.

     If and when the Registrant locates a business opportunity,
management of the Registrant will give consideration to the dollar
amount of that entity's profitable operations and the adequacy of its
working capital in determining the terms and conditions under which
the Registrant would consummate such an acquisition.  Potential
business opportunities, no matter which form they may take, will most
likely result in substantial dilution for the Registrant's
shareholders due to the issuance of stock to acquire such an
opportunity.

Risk Factors Connected with Plan of Operation.

(a)  Limited Prior Operations, History of Operating Losses, and
Accumulated Deficit May Affect Ability of Registrant to Survive.

     The Registrant has had limited prior operations to date.  Since
the Registrant's principal activities recently have been limited to
organizational activities, and seeking new business ventures, it has
no recent record of any revenue-producing operations.  Consequently,
there is only a limited operating history upon which to base an
assumption that the Registrant will be able to achieve its business
plans.  In addition, the Registrant has no assets.  As a result, there
can be no assurance that the Registrant will generate significant
revenues in the future; and there can be no assurance that the
Registrant will operate at a profitable level.  Accordingly, the
Registrant's prospects must be considered in light of the risks,
expenses and difficulties frequently encountered in connection with
the establishment of a new business.

     The Registrant has incurred losses from operations: $4,826,641
for the year ended December 31, 2000, $3,321,785 for the year ended
December 31, 2001, and $213,015 for the six months ended June 30,
2002.  At June 30, 2002, the Registrant had an accumulated deficit of
$13,617,488.  This raises substantial doubt about the Registrant's
ability to continue as a going concern.

(b)  Need for Additional Financing May Affect Operations and Plan
of Business.

     The working capital requirements associated with any adopted plan
of business of the Registrant may be significant.  The Registrant
anticipates that it must seek financing to start-up a new business
line (an amount which is as yet to be determined).  However, such
financing, when needed, may not be available, or on terms acceptable
to management.

     If funding is insufficient at any time in the future,  the
Registrant may not be able to take advantage of business opportunities
or respond to competitive pressures, any of which could have a
negative impact on the business, operating results and financial
condition.  In addition, if additional shares were issued to obtain
financing, current shareholders may suffer a dilutive effect on their
percentage of stock ownership in the Registrant.

(c)  Loss of Any of Current Management Could Have Adverse Impact on
Business and Prospects for Registrant.

     The Registrant's success is dependent upon the hiring of key
administrative personnel.  None of the Registrant's officers,
directors, and key employees has an employment agreement with the
Registrant; therefore, there can be no assurance that these personnel
will remain employed by the Registrant.  Should any of these
individuals cease to be affiliated with the Registrant for any reason
before qualified replacements can be found, there could be material
adverse effects on the Registrant=s business and prospects.

     In addition, all decisions with respect to the management of
the Registrant will be made exclusively by the officers and directors
of the Registrant.  Shareholders of the Registrant will only have
rights associated with such ownership to make decisions that affect
the Registrant.  The success of the Registrant, to a large extent,
will depend on the quality of the directors and officers of the
Registrant.  Accordingly, no person should invest in the shares unless
he is willing to entrust all aspects of the management of the
Registrant to the officers and directors.

(d)  Limitations on Liability, and Indemnification, of Directors
and Officers May Result in Expenditures by Registrant.

     The bylaws of the Registrant and the Nevada Revised Statutes
generally provide for permissive indemnification of officers and
directors and the Registrant may provide indemnification under such
provisions.  Any indemnification of directors, officer, or employees,
could result in substantial expenditures being made by the Registrant
in covering any liability of such persons or in indemnifying them.

(e)  Potential Conflicts of Interest May Affect Ability of Officers
and Directors to Make Decisions in the Best Interests of Registrant.

     The officers and directors have other interests to which they
devote time, either individually or through partnerships and
corporations in which they have an interest, hold an office, or serve
on boards of directors, and each will continue to do so
notwithstanding the fact that management time may be necessary to the
business of the Registrant. As a result, certain conflicts of interest
may exist between the Registrant and its officers and/or directors
that may not be susceptible to resolution.  All of the potential
conflicts of interest will be resolved only through exercise by the
directors of such judgment as is consistent with their fiduciary
duties to the Registrant.  It is the intention of management, so as to
minimize any potential conflicts of interest, to present first to the
board of directors of the Registrant, any proposed investments for its
evaluation.

(f)  Non-Cumulative Voting May Affect Ability of Shareholders to
Influence Registrant Decisions.

     Holders of the shares are not entitled to accumulate their votes
for the election of directors or otherwise. Accordingly, the holders
of a majority of the shares present at a meeting of shareholders will
be able to elect all of the directors of the Registrant, and the
minority shareholders will not be able to elect a representative to
the Registrant's board of directors.

(g)  Absence of Cash Dividends May Affect Investment Value of
Registrant's Stock.

     The board of directors does not anticipate paying cash dividends
on the shares for the foreseeable future and intends to retain any
future earnings to finance the growth of the Registrant's business.
Payment of dividends, if any, will depend, among other factors, on
earnings, capital requirements, and the general operating and
financial condition of the Registrant, and will be subject to legal
limitations on the payment of dividends out of paid-in capital.

(h)  No Assurance of Continued Public Trading Market and Risk of Low
Priced Securities May Affect Market Value of Registrant's Stock.

     There has been only a limited public market for the common stock
of the Registrant.  The common stock of the Registrant is not
currently traded on any exchange.  As a result, an investor may find
it difficult to dispose of, or to obtain accurate quotations as to the
market value of the Registrant's securities. In addition, the common
stock is subject to the low-priced security or so called "penny stock"
rules that impose additional sales practice requirements on broker-
dealers who sell such securities.  The Securities Enforcement and
Penny Stock Reform Act of 1990 requires additional disclosure in
connection with any trades involving a stock defined as a penny stock
(generally, according to recent regulations adopted by the U.S.
Securities and Exchange Commission, any equity security that has a
market price of less than $5.00 per share, subject to certain
exceptions), including the delivery, prior to any penny stock
transaction, of a disclosure schedule explaining the penny stock
market and the risks associated therewith.   The regulations governing
low-priced or penny stocks sometimes limit the ability of broker-
dealers to sell the Registrant's common stock and thus, ultimately,
the ability of the investors to sell their securities in the secondary
market.

Forward Looking Statements.

     The foregoing Plan of Operation contains "forward looking
statements" within the meaning of Rule 175 of the Securities Act of
1933, as amended, and Rule 3b-6 of the Securities Act of 1934, as
amended, including statements regarding, among other items, the
Registrant's business strategies, continued growth in the Registrant's
markets, projections, and anticipated trends in the Registrant's
business and the industry in which it operates.  The words "believe,"
"expect," "anticipate," "intends," "forecast," "project," and similar
expressions identify forward-looking statements.  These forward-
looking statements are based largely on the Registrant's expectations
and are subject to a number of risks and uncertainties, certain of
which are beyond the Registrant's control.  The Registrant cautions
that these statements are further qualified by important factors that
could cause actual results to differ materially from those in the
forward looking statements, including, among others, the following:
reduced or lack of increase in demand for the Registrant's products,
competitive pricing pressures, changes in the market price of
ingredients used in the Registrant's products and the level of
expenses incurred in the Registrant's operations.  In light of these
risks and uncertainties, there can be no assurance that the forward-
looking information contained herein will in fact transpire or prove
to be accurate.  The Registrant disclaims any intent or obligation to
update "forward looking statements."

PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.

     Other than as set forth below, the Registrant is not a party to
any material pending legal proceedings other than ordinary routine
litigation incidental to the business and, to the best of its
knowledge, no such action by or against the Registrant has been threatened.

Securities and Exchange Commission Action.

     On November 28, 2001, the Securities and Exchange Commission
filed an action against Jeanette B. Wilcher and Life Foundation Trust
along with the Registrant and its former president, Stephen J.
Bradford.  The complaint charged the Registrant and Mr. Bradford with
fraud in connection with several press releases issued by the company
between April 16 and May 10, 1999 that contained false and misleading
statements about a purported investment in the Registrant by Life
Foundation Trust.  The complaint also charged Life Foundation Trust, a
Scottsdale, Arizona, for-profit trust, and Ms. Wilcher with aiding and
abetting the Registrant's actions and illegally selling Registrant
stock.  Simultaneous with the filing of the Commission's complaint,
the Registrant and Mr. Bradford settled the action by consenting to a
permanent injunction, without admitting or denying the allegations in
the complaint, for the violations outlined above.

     On July 29, 2002, the Honorable Gary L. Taylor, United States
District Judge for the Central District of California, resolved the
case against Life Foundation Trust and Ms. Wilcher on summary judgment
without the need for trial. The Court (1) permanently enjoined Life
Foundation Trust and Ms. Wilcher from further violations of the
antifraud provisions of Section 10(b) of the Securities Exchange Act
of 1934 and Rule 10b-5 thereunder and the registration provisions of
Sections 5(a) and 5(c) of the Securities Act of 1933; (2) held Life
Foundation Trust and Ms. Wilcher jointly liable for disgorgement of
the $1,024,418.50 that Life Foundation Trust made in profits on the
illegal sale of Registrant stock; (3) ordered Life Foundation Trust to
pay a civil penalty of $1,024,418.50; and (4) ordered Ms. Wilcher to
pay a civil penalty of $110,000.

Libel Action.

     On April 27, 2000 the Registrant filed a Complaint for Libel in
the Superior Court of the State of California for the County of Los
Angeles, Case No. BC 228991 against Bloomberg, L.P. ("Bloomberg") a
Delaware limited partnership, and David Evans ("Evans"), a reporter
with Bloomberg's news service, Bloomberg News.  The lawsuit alleges
that Bloomberg and Evans, through Bloomberg News, published a series
of defamatory articles on May 11 and May 12, 1999, which contained
certain false and defamatory statements regarding the Registrant.  As
a result of the publication of the articles, the Complaint alleges,
the price of the Registrant's stock dropped about 53% in one day.  The
Complaint seeks damages against Bloomberg and Evans in excess of
$500,000,000.

     In July 2000, the Court denied Bloomberg's first Motion to
Strike, holding that Bloomberg and Evans failed to meet their burden
of proof of showing the application of California's "anti-SLAPP"
statute.  On October 22, 2000, after giving the defendants a second
opportunity to present evidence, the Court granted the defendants a
"renewed" special motion to strike, brought pursuant to the "anti-
SLAPP" statute and dismissed the Registrant's Complaint for Libel. The
Court also awarded the defendants attorney's fees in an amount to be
determined at a future date after an evidentiary hearing and upon a
motion to be filed by Bloomberg.  Bloomberg filed its motion for
attorney's fees and costs on January 8, 2001.  The Registrant filed a
reply to Bloomberg's motion on February 14, 2001.  The Registrant is
unable to determine the amount of attorney's fees and costs that will
be awarded in favor of Bloomberg and against the Registrant.  The
Registrant has decided not to appeal the Court's decision..

Obligations, Debts, and Liabilities Assumed in Merger.

     During 2000, substantially all of the obligations, debts and
liabilities assumed in connection with the Merger, consisting
principally of legal actions that were pending against the Registrant
at December 31, 1999, became fixed and determinable by the award of
judgments against the Registrant by courts of competent jurisdiction.

     Merger related liabilities consist of judgments awarded against
the Registrant by courts of competent jurisdiction for matters
existing as of the date of the Merger or arising from the Merger.
These matters are described below.

     On May 21, 1997, Jeffery M. Good, as Plaintiff, filed an action
in the United States District Court, Southern District of Iowa,
Davenport Division (Case No. 3-97-CV-60085) against Systems
Communications, Inc., as Defendant, for amounts Mr. Good alleged were
due under an employment agreement.  On September 22, 2000, the Court
entered an order of Findings of Fact, Conclusions of Law and Judgment
against the Registrant.  Pursuant to the order, the Court awarded
Plaintiff $673,933 for breach of contract damages, $31,013 for
attorney fees and costs, $5,538 for liquidated damages and $100,000
for punitive damages, plus interest.  As of December 31, 2000, merger
related liabilities include approximately $1,050,819 for this action.
This amount includes pre and post-judgment interest of approximately
$240,335.  The excess of the amount awarded by the Court, including
pre and post judgment interest, over the amount accrued at December
31, 1999 was approximately $600,819.  This amount is included in
impairment and other losses in the accompanying statement of
operations for the year ended December 31, 2000.

     On April 15, 1997, Ken Lame, as Plaintiff, filed an action in the
United States District Court, District Court of Utah, Central Division
(Case No. 2:97CV0292W) against Systems Communications, Inc. and a
subsidiary Registrant that is now a subsidiary of IHSI, as Defendants,
for amounts due under a consulting agreement.  On July 7, 2000, the
United States District Court for the District of Utah, Central
Division, entered a judgment in favor of Kenneth D. Lame against the
Registrant in the amount of $302,233, plus post judgment interest.  As
of December 31, 1999, the Registrant had accrued $450,000 for this
action.  The excess of the amount accrued at December 31, 1999 over
the amount awarded by the Court, including interest, was approximately
$133,111.  This amount was recorded was recorded as a reduction in
impairment and other losses for the year ended December 31, 2000.

     In 1996, Systems Communications, Inc. informed the principals of
Coast Communications, Inc. ("CCI") that it was canceling the
acquisition of CCI, terminating all of the related acquisition
documents and abandoning CCI's business.  In connection with the
abandonment of CCI's business, the Registrant wrote off its remaining
investment in CCI and recognized a loss of approximately $300,000.
The principals of CCI filed suit against the Registrant, and on
October 15, 1999 the Circuit Court of Pinellas County, Florida, Case
Number 99-003990-CI-20, entered a judgment against Systems
Communications, Inc. in the amount of $510,599.  On January 4, 2000
the Plaintiffs filed a Amended Notice of Entry of Judgment on Sister-
State Judgment in the Superior Court of California, San Bernardino
County, Case Number RCV 044865.  As of December 31, 2000 and 1999, the
Registrant has accrued $555,000 related to this action.

     On June 27, 2000, the Circuit Court of the Sixth Circuit in and
for Pinellas County, Florida entered Final Judgments of damages in
favor of Mr. Edwin B. Salmon, Jr., the former Chief Executive Officer
and Chairman of the of the Board of the Registrant, in the amount of
$468,657 (Case No. 00-002088-CI-15), and in favor of Mr. William Van
Hook, the transferee of certain Merger shares from Mr. Salmon, in the
amount of $164,253 (Case No. 00-002946-CI-15) for wrongfully denying
the removal of restrictive legends, pursuant to Rule 144 of the
Securities Act of 1933, on share certificates of the Registrant held
by them.  As of December 31, 2000, the Registrant has accrued
$665,337, including accrued interest of $32,426, related to these
actions.  The Registrant believes that it did not wrongfully deny the
removal of restrictive legends as a result of Mr. Salmon's guaranty of
Merger liabilities and representations made by Mr. Salmon in
connection with the Merger.

     On October 26, 1999, the Supreme Court of the State of New York
entered a judgment in favor of Health Management Services, Inc.,
Plaintiff, against a subsidiary Registrant that is now a subsidiary of
IHSI, as Defendant.  The amount of the judgment was $84,674 and
together with pre and post-judgment interest of approximately $8,875,
the total judgment amounts to approximately $93,549 as of December 31,
2000.

     The Registrant believes that its current financial position and
cash flows make it impossible for the Registrant to satisfy these
judgments.  Nevertheless, the Registrant expects to enter into
discussions with pre-merger creditors to resolve outstanding disputes
and pre-existing conditions the Registrant assumed in its merger with
SCMI.  The Registrant also plans to seek all available remedies
against Edwin B. Salmon, Jr., the Registrant's former Chairman of the
Board, for restitution and for monetary damages for alleged
misrepresentations made in connection with the merger.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS.

     The Registrant did not sell any securities without registration
(restricted) during the three months ended June 30, 2002.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.

     The Registrant is in default under the terms of a Promissory Note
that provides for a series of principal payments to the lender
totaling $701,500 during the period from January 6, 2001 through
December 7, 2001.  As of June 30, 2002, the total amount due to the
lender under the Cash Payment Option is $809,617, including interest
of $116,170.

     The Registrant is also in default under the terms of a
convertible promissory note agreement with a principal balance of
$103,802 that came due on December 8, 2000.  This promissory note, or
any portion thereof is convertible, at the election of the holder,
into shares of the Registrant's common stock on the Payment Date at a
conversion price equal to fifty percent (50%) of the closing bid price
of the Registrant's common stock at the close of business on the day
preceding the receipt by the Registrant of a notice of conversion.
The current balance of the note is comprised of borrowings from the
related party of $150,000 and accrued interest and other costs of
approximately $16,000, less net proceeds received by the related party
of  $62,198 from the sale of common stock, net of $103,802. A notice
of conversion was received as of January 22, 2001. The notice of
conversion provides for the issuance of approximately 4.4 million
restricted shares to settle the Registrant's obligations under the
applicable agreements.  The Registrant is contesting the issuance of
the 4.4 million restricted shares alleging that the transaction
results in a usurious rate of interest. Nevertheless, the Registrant
has set aside 4.4 million shares to fulfill its obligation if necessary.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

     None

ITEM 5.  OTHER INFORMATION.

     None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

Exhibits.

     Exhibits included or incorporated by reference herein are set
forth in the attached Exhibit Index.

Reports on Form 8-K.

     The Registrant filed the following reports on Form 8-K during the
second quarter of the fiscal year covered by this Form 10-QSB:

     An amended Form 8-K was filed on June 20, 2002, to include the a
letter from the former accountant, addressed to the Securities and
Exchange Commission regarding that firm's agreement with the
statements made by the Registrant in response to Item 304(a)(1) of
Regulation S-B, except for the discussion regarding the dismissal, in
response to the amended Form 8-K filed on April 9, 2002 (in which the
Registrant amended the reason for the change of certifying accountants
from "declined to stand for re-election" to "dismissal by action of
the board of directors").

                               SIGNATURE

     Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                       Diamond Hitts Production, Inc.



Dated: August 13, 2002                 By: /s/  Mark Crist
                                       Mark Crist, President

                              EXHIBIT INDEX

Number                       Description

2.1     Agreement to Exchange Stock between the Registrant and Grant
        Kolb and Patrick Loeprich, dated November 14, 1997
       (incorporated by reference to Exhibit 10.43 of the Form 8-K
        filed on November 21, 1997).

2.2     Reorganization and Merger Agreement between Hitsgalore.com
        and Systems Communications, Inc., dated February 11, 1999
        (incorporated by reference to Exhibit 2 to the Form 8-K
        filed on February 17, 1999).

2.3     Agreement and Plan of Merger between the Registrant and
        Diamond Hitts Production, Inc., a Florida corporation, dated
        August 9, 2001 (incorporated by reference to Exhibit 2.3 of
        the Form 10-Q filed on November  21, 2001).

2.4     Acquisition Agreement between the Registrant and
        shareholders of Secure For Sure, Inc., dated July 12, 2002
        (incorporated by reference to Exhibit 2 of the Form 8-K
        filed on July 19, 2002).

3.1     Articles of Incorporation, dated June 20, 2001 (incorporated
        by reference to Exhibit 3.1 of the Form 10-Q filed on
        November  21, 2001).

3.2     Certificate of Amendment to Articles of Incorporation, dated
        August 14, 2001 (incorporated by reference to Exhibit 3.2 of
        the Form 10-Q filed on November 21, 2001).

3.3     Bylaws (incorporated by reference to Exhibit 3.2 to the Form
        10 filed on July 23, 1996).

4.1     Convertible Debenture Note between the Registrant and Telcom
        United North, Inc., dated December 5, 1995 (incorporated by
        reference to Exhibit 4.1 of the Form 10-SB filed on July 23, 1996).

4.2     Convertible Debenture Note between the Registrant and Donald
        T. McAllister, M.D., dated December 5, 1995 (incorporated by
        reference to Exhibit 4.2 of the Form 10-SB filed on July 23, 1996).

4.3     Convertible Debenture Note between the Registrant and David
        Fisk, dated December 5, 1995 (incorporated by reference to
        Exhibit 4 of the Form 10-SB filed on July 23, 1996).

4.4     Convertible Debenture Note between the Registrant and
        Leonard F. D'Innocenzo, dated December 5, 1995 (incorporated
        by reference to Exhibit 4 of the Form 10-SB filed on July
        23, 1996).

4.5     Convertible Debenture Note between the Registrant and Dean
        Charles Colantino, dated December 5, 1995 (incorporated by
        reference to Exhibit 4 of the Form 10-SB filed on July 23, 1996).

4.6     Convertible Debenture Note between the Registrant and Donald
        P. Dugan, dated December 5, 1995 (incorporated by reference
        to Exhibit 4 of the Form 10-SB filed on July 23, 1996).

4.7     Convertible Debenture Note between the Registrant and Comgi
        Retirement Trust, John R. Lang, M.D./Sharon B. Lang: Trustees, dated
        December 5, 1995 (incorporated by reference to Exhibit 4 of the Form
        10-SB filed on July 23, 1996).

4.8     Convertible Debenture Note between the Registrant and John
        R. Lang, M.D./Sharon B. Lang, dated December 5, 1995
        (incorporated by reference to Exhibit 4 of the Form 10-SB
        filed on July 23, 1996).

4.9     Convertible Debenture Note between the Registrant and Dale
        D. Higgins, dated December 5, 1995 (incorporated by
        reference to Exhibit 4 of the Form 10-SB filed on July 23, 1996).

4.10    Convertible Debenture Note between the Registrant and R.
        Thomas Jannarone, dated December 5, 1995 (incorporated by
        reference to Exhibit 4 of the Form 10-SB filed on July 23, 1996).

4.11    Offshore Offering Distribution agreement between the
        Registrant and Victory Investments, LLC., dated October 1,
        1996 (incorporated by reference to Exhibit 4.11 of the Form
        8-K filed on March 28, 1997).

4.12    Convertible Debenture issued to RIC Investment Fund, Ltd.,  dated
        November 21, 1996 (incorporated by reference to Exhibit 4.12
        of the Form 8-K filed on March 28, 1997).

4.13    Offshore Securities Subscription Agreement for Cumulative
        Convertible Debenture between the Registrant and RANA
        Investment Registrant, dated November 26, 1996 (incorporated
        by reference to Exhibit 4.13 of the Form 8-K filed on March
        28, 1997).

4.14    Cumulative Convertible Debenture Note issued by the
        Registrant to Nidan, Inc. (incorporated by reference to
        Exhibit 4.15 of the Form 10-K filed on February 20, 1998).

4.15    Convertible Debenture issued to International TeleData
        Corporation, dated January 31, 1997 (incorporated by
        reference to Exhibit 10.41 of the Form 8-K filed on July 28, 1997).

4.16    Offshore Securities Subscription Agreement for Convertible
        Debenture between the Registrant and Timboon, Ltd., dated
        February 24, 1997 (incorporated by reference to Exhibit 4.14
        of the Form 8-K filed on March 28, 1997).

4.17    Form of Settlement Agreement between the Registrant and
        Timboon Ltd., dated March 2, 1998 (incorporated by reference
        to Exhibit 4.16 of the Form 8-K filed on March 10, 1998).

4.18    Form of Non-Statutory Incentive Stock Option Agreement
        (incorporated by reference to Exhibit 4.17 of the Form S-8
        filed on May 12, 1998).

4.19    Hitsgalore.com, Inc. Year 2000 Stock Award Plan, dated
        September 29, 2000 (incorporated by reference to Exhibit
        10.1 of the Form S-8 filed on October 2, 2000).

4.20    Retainer Stock Plan for Non-Employee Directors and
        Consultants, dated January 16, 2001 (incorporated by
        reference to Exhibit 4 of the Form S-8 filed on February 8, 2001)

4.21    Non-Employee Directors and Consultants Retainer Stock Plan,
        dated May 25, 2001 (incorporated by reference to Exhibit 4.1
        of the Form S-8 filed on June 18, 2001).

4.22    Consulting Services Agreement between the Registrant and
        Mark Crist, dated May 30, 2001 (incorporated by reference to
        Exhibit 4.2 of the Form S-8 filed on June 18, 2001).

4.23    Consulting Services Agreement between the Registrant and
        Marcine Aniz Uhler, dated May 30, 2001 (incorporated by
        reference to Exhibit 4.3 of the Form S-8 filed on June 18, 2001).

4.24    Consulting Services Agreement between the Registrant and
        Marc R. Tow, dated May 30, 2001 (incorporated by reference
        to Exhibit 4.4 of the Form S-8 filed on June 18, 2001).

4.25    Consulting Services Agreement between the Registrant and
        Richard Nuthmann, dated May 30, 2001 (incorporated by
        reference to Exhibit 4.5 of the Form S-8 filed on June 18, 2001).

4.26    Consulting Services Agreement between the Registrant and
        Charles Maranto, dated May 30, 2001 (incorporated by
        reference to Exhibit 4.6 of the Form S-8 filed on June 18, 2001).

4.27    Consulting Services Agreement between the Registrant and
        John Anton, dated May 30, 2001 (incorporated by reference to
        Exhibit 4.7 of the Form S-8 filed on June 18, 2001).

4.28    Consulting Services Agreement between the Registrant and
        Larry Arnold, dated May 30, 2001 (incorporated by reference
        to Exhibit 4.8 of the Form S-8 filed on June 18, 2001).

4.29    Consulting Services Agreement between the Registrant and
        Robert Thompson, dated May 30, 2001 (incorporated by
        reference to Exhibit 4.9 of the Form S-8 filed on June 18, 2001).

4.30    Consulting Services Agreement between the Registrant and
        Laurie Carrington, dated May 30, 2001 (incorporated by
        reference to Exhibit 4.10 of the Form S-8 filed on June 18, 2001).

4.31    Consulting Services Agreement between the Registrant and
        Leonard Shulman, dated May 30, 2001 (incorporated by
        reference to Exhibit 4.11 of the Form S-8 filed on June 18, 2001).

4.32    Hitsgalore, Systems Communications Creditors Trust Agreement
        between the Registrant and Gary Borglund, dated June 26,
        2002 (incorporated by reference to Exhibit 4 of the Form 8-K
        filed on July 19, 2002).

10.1    Letter of Intent, Subscription for Stock between the
        Registrant and The Life Foundation Trust, dated April 15,
        1999 (incorporated by reference to Exhibit 10.44 of the Form
        10-K/A filed on December 2, 1999).

10.2    Subscription Agreement and Investment Representations
        between the Registrant and The Life Foundation Trust, dated
        April 15, 1999 (incorporated by reference to Exhibit 10.45
        of the Form 10-K/A filed on December 2, 1999).

10.3    Purchase Agreement between the Registrant and Solvere, Inc.,
        dated March 29, 1999 (incorporated by reference to Exhibit
        10.46 of the Form 10-K/A filed on December 2, 1999)

16.1    Letter on change in certifying accountant, dated September
        7, 1999 (incorporated by reference to Exhibit 16 of the Form
        8-K/A filed on September 9, 1999).

16.2    Letter on change in certifying accountant (incorporated by
        reference to Exhibit 16 of the Form 8-K/A filed on May 17, 2001).

16.3    Letter on change in certifying accountant (incorporated by
        reference to Exhibit 16 of the Form 8-K/A filed on March 11, 2002).

16.4    Letter on change in certifying accountant (incorporated by
        reference to Exhibit 16 of the Form 8-K/A filed on June 20, 2002).

17.1    Letter on director resignation, dated July 2, 1997
        (incorporated by reference to Exhibit 17.1 of the Form 8-K
        filed on July 28, 1997).

17.2    Letter on director resignation, dated June 27, 1997
        (incorporated by reference to Exhibit 17.2 of the Form 8-K
        filed on July 28, 1997).