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

                                    FORM 10-Q

(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, 2001

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: 000-26668


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


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

92 Corporate Park, Suite C-802, Irvine, California                92606
   (Address of principal executive offices)                  (Zip Code)

            Registrant's telephone number:  (800) 660-4292

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, 2001, the Registrant had 230,347,231 shares of common
stock issued and outstanding.

                              TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION                                           PAGE

ITEM 1.  FINANCIAL STATEMENTS

         BALANCE SHEETS AS OF JUNE 30, 2001 AND DECEMBER 31, 2000           3

         STATEMENTS OF OPERATIONS
         FOR THE SIX MONTHS AND THREE
         MONTHS ENDED JUNE 30, 2001 AND 2000                                4

         STATEMENTS OF CASH FLOWS
         FOR THE SIX MONTHS MONTHS ENDED JUNE 30, 2001 AND 2000             5

         NOTES TO FINANCIAL STATEMENTS                                      6

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS                      8

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES
         ABOUT MARKET RISK                                                 11

PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS                                                 11

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS                         14

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES                                   14

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS               14

ITEM 5.  OTHER INFORMATION                                                 14

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K                                  14

SIGNATURE                                                                  15

                                     PART I.

ITEM 1.  FINANCAL STATEMENTS.

                         DIAMOND HITTS PRODUCTION, INC.
                        (formerly Hitsgalore.com, Inc.)
                               BALANCE SHEETS
                     JUNE 30, 2001 AND DECEMBER 31, 2000


                                                     2001           2000
                                                  (UNAUDITED)
                                ASSETS

Cash                                              $        332   $        25
Accounts receivable                                     20,000         5,000
Property and equipment to be disposed of                     -        20,000
Total assets                                      $     20,332   $    25,025

                LIABILITIES AND STOCKHOLDERS' DEFICIT

Short-term borrowings from related parties,
less unamortized debt discount of $43,307
in 2001 and $218,485 in 2000                      $    761,995   $   586,817
Due to officers and stockholders                        39,382        31,077
Accounts payable and accrued expenses                  773,663       662,474
Accrued compensation and employee benefits                   -       152,933
Merger related liabilities                           2,791,836      2,681,594

Total liabilities                                    4,366,876      4,114,895

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         54,764
Common stock, $0.001 par value; authorized
550,000,000 shares; issued and outstanding
230,347,231 shares in 2001 and 111,883,095
shares in 2000                                         230,347        111,883
Additional paid-in capital                           8,452,969      5,826,171
Accumulated deficit                                (13,084,624)   (10,082,688)

Total stockholders' deficit                         (4,346,544)    (4,089,870)

Total liabilities and stockholders' deficit     $       20,332   $     25,025

                        See Notes to Financial Statements

                          DIAMOND HITTS PRODUCTION, INC.
                         (formerly Hitsgalore.com, Inc.)
                             STATEMENTS OF OPERATIONS
      FOR THE SIX MONTHS AND THREE MONTHS ENDED JUNE 30, 2001 AND 2000
                                  (Unaudited)

                                    Six Months Ended        Three Months Ended
                                       June 30,                 June 30,
                                    2001        2000        2001          2000

Net revenues                  $        -    $      -    $      -     $       -

Costs and expenses:
General and administrative
expenses                       1,338,959           -      154,902            -
Interest expense, net            318,186     321,540      113,239      321,540
                               1,657,145     321,540      268,141      321,540

Loss from continuing
operations, net of income
tax benefit of $22,000 for
the three months ended
June 30, 2001                 (1,657,145)   (321,540)    (246,141)    (321,540)

Income (loss) from
discontinued operations,
less income taxes of $22,000
for the three months ended
June 30, 2001                 (1,344,791) (1,345,809)      38,753     (718,781)

Net loss                     $(3,001,936)$(1,667,349)   $(207,388) $(1,040,321)

Basic and diluted income
(loss) per share:
Income (loss) from
continuing  operations             (0.01)      (0.01)       (0.00)       (0.01)
Income (loss) from
discontinued operations            (0.01)      (0.03)       (0.00)       (0.01)

Weighted average number of
Shares outstanding           152,103,346  48,232,709  184,315,368    48,122,343

                        See Notes to Financial Statements

                         DIAMOND HITTS PRODUCTION, INC.
                        (formerly Hitsgalore.com, Inc.)
             STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED
                          JUNE 30, 2001 AND 2000
                               (Unaudited)

                                                          2001       2000

Net cash used in operating activities                 $  (12,998)   $(860,174)
Cash flows from investing activities:
Capital expenditures                                           -     (102,371)

Net cash used in investing activities                          -     (102,371)

Cash flows from financing activities:
Proceeds from issuance of stock and
exercise of options and warrants                           5,000      339,425
Proceeds from short-term borrowings                            -      684,500
Borrowings from and (payments to)
stockholders and officers, net                             8,305      (44,500)
Payments on note payable                                       -       (2,293)

Net cash provided by financing activities                  13,305      977,132

Net increase in cash                                          307       14,587
Cash at beginning of period                                    25        2,223

Cash at end of period                                         332       16,810

Supplemental disclosure of Cash Flow Information
and Non-Cash Investing and Financing Activities.

Accounts receivable from sale of assets                    20,000            -
Issuance of common stock for services                   2,705,406       85,515
Issuance of common stock upon conversion
of short-term borrowings                                        -      279,750
Issuance of common stock in exchange for
debt                                                        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
disposed such assets.  Effective as of March 29, 2001, the Registrant changed
its name from Hitsgalore.com, Inc. to Diamond Hitts Production, Inc.  The
Registrant is a Florida corporation.

The Registrant's current business is to seek and acquire profitable companies
and earning assets 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, 2000. 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 which are, in the opinion of
management, necessary to provide a fair statement of results for the interim
periods presented.

Certain amounts in the 2000 financial statements have been reclassified to
conform to the 2001 presentation.

Earnings Per Share.

The weighted average number of shares outstanding during the six months ended
June 30, 2001 and June 30, 2000 was approximately 152,103,346 shares and
48,232,709, respectively. The weighted average number of shares outstanding
during the three months ended June 30, 2001 and June 30, 2000 was
approximately 184,315,368 shares and 48,122,343 shares, respectively.

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 $3,001,936 in the first half of 2001 and $4,826,641 and
$2,624,461, respectively, in the previous two fiscal years. As of June 30,
2001, the Registrant had a working capital deficiency of approximately $4.3
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 sale, merger or discontinuance of operations.  The
financial statements do not include any adjustments that might result from the
outcome of these uncertainties.

NOTE 4 - SHORT-TERM BORROWINGS FROM RELATED PARTIES

As of June 30, 2001, 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, 2001, the Company is in violation of the payment terms and/or
conversion privileges contained in these debt agreements. The principal
amounts of borrowings that have not been paid and/or converted into shares of
the Registrant's common stock according to the terms of the related agreements
was approximately $544,500. The number of shares of the Registrant's common
stock that such debt would have been converted into as of June 30, 2001 was
approximately forty (40) million shares.

NOTE 5 - STOCKHOLDERS' EQUITY

During the six months ended June 30, 2001, the Registrant issued approximately
5,250,731 shares pursuant to its Year 2000 Stock Award Plan and approximately
93,863,405 shares pursuant to its Retainer Stock Plans for Non-Employee
Directors and Consultants and recorded total stock compensation expense of
approximately $2.0 million. In addition, the Registrant made the following
sales of unregistered securities during the six  months ended June 30, 2001:

(a)  The Registrant issued 250,000 shares of its common stock in a
private placement transaction and received net proceeds of $5,000.

(b)  The Registrant issued 15,000,000 shares of its common stock to
Dorian Reed, the Registrant's former Chairman of the Board, and
recorded stock compensation expense of $451,200.

(c)  The Registrant issued 4,000,000 shares of its common stock
pursuant to an Internet traffic agreement and recorded a charge
to income of $240,000.

(d)  The Registrant issued 100,000 shares of its common stock in
payment of a $2,000 debt and recorded interest expense of $1,008.

NOTE 6 - RECENT ACCOUNTING PRONOUNCEMENTS

On July 20, 2001, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") 141, "Business
Combinations", and SFAS 142, "Goodwill and Intangible Assets".  SFAS 141 is
effective for all business combinations completed after June 30, 2001.  SFAS
142 is effective for fiscal years beginning after December 15, 2001; however,
certain provisions of this Statement apply to goodwill and other intangible
assets acquired between July 1, 2001 and the effective date of SFAS 142.
Major provisions of these Statements and their effective dates for the Company
are as follows:

All business combinations initiated after June 30, 2001 must use the
purchase method of accounting.  The pooling of interest method of
accounting is prohibited except for transactions initiated before July 1, 2001.

Intangible assets acquired in a business combination must be recorded
separately from goodwill if they arise from contractual or other legal
rights or are separable from the acquired entity and can be sold,
transferred, licensed, rented or exchanged, either individually or as part
of a related contract, asset or liability.

Goodwill, as well as intangible assets with indefinite lives, acquired
after June 30, 2001, will not be amortized.  Effective January 1, 2002, all
previously recognized goodwill and intangible assets with indefinite lives
will no longer be subject to amortization.

Effective January 1, 2002, goodwill and intangible assets with indefinite
lives will be tested for impairment annually and whenever there is an
impairment indicator.

All acquired goodwill must be assigned to reporting units for purposes of
impairment testing and segment reporting.

Although it is still reviewing the provisions of these Statements,
management's preliminary assessment is that these Statements will not have a
material impact on the Company' financial position or results of operations.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.

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 Continuing Operations.

(a)  Net Revenues.

The Registrant currently has no revenue generating activities. Its
principal business is to seek acquisition opportunities and liquidate, modify,
extend or otherwise satisfy the indebtedness of the Registrant.

(b)  General and Administrative Expenses.

General and administration expenses for the six months and three months
ended June 30, 2001 consist primarily of stock awards pursuant to the
Registrant's Retainer Stock Plan for Non-Employee Directors and Consultants.
For the six months and three months ended June 30, 2001, the Registrant issued
an aggregate of 93,863,405 shares of its common stock pursuant to these Plans
and recorded total compensation expense of approximately $1,309,974 and
$134,974, respectively.

(c)  Interest Expense, net

Interest, net  for the six  months ending  June 30, 2001 consists of
contingent interest payable on short-term borrowings of approximately $28,000
and interest accruals on merger related and other liabilities of approximately
$115,000.  For the three months ended June 30, 2001, the corresponding amounts
were approximately $14,000 and $58,000, respectively.

Results of Discontinued Operations.

The results of discontinued operations are summarized as follows:

                                 Six Months Ended        Three Months Ended
                                     June 30,                 June 30,

                                  2001       2000         2001       2000

Net revenues                  $    5,257  $  117,950   $    182   $  104,908
Selling, general and
administrative expenses        1,350,048   1,318,635    (60,935)     748,968
Depreciation and amortization          -     145,124          -       74,721
Income taxes                           -           -     22,000            -
Net income (loss)             (1,344,791) (1,345,809)    38,753     (748,781)

(a)  Net Revenues.

Net revenues for the six  months ended June 30, 2001 and 2000 were
$5,257 and $117,950, respectively. Net revenues for the three months ended
June 30, 2001 were $182 as compared to $104,908 for the three months ended
June 30, 2000. The lack of revenues from period to period reflects the
Registrant's inability to develop a market for its "bid by impression" and
"media rich data description" products, an overall decline in "dot com"
industry conditions and the sale of the Registrant's "dot com" assets in
February 2001. The Registrant's inability to develop a market for its "bid by
impression" and "media rich data description" products was principally due to
the Registrant's lack of financial resources.

(b)  Selling, General and Administrative Expenses.

Selling, general and administrative expenses for the six months ended
June 30, 2001 and 2000 were $1,350,048 and $1,318,635, respectively, an
increase of approximately 2%. This increase is attributable to compensation to
retain employees and other factors in order to maintain operations.

(c)  Depreciation and Amortization.

As of December 31, 2000, the Registrant classified all of its "dot com"
assets, consisting principally of property and equipment and acquired
intangible assets as "assets to be disposed of." These assets were disposed of
in February 2001 for a total purchase price of $20,000. Accordingly, no
depreciation and amortization is reflected in the accompanying financial
statements for the year 2001 . The carrying value of these assets as of
December 31, 2000 was $20,000.  No gain or loss was recognized upon
disposition of these assets.

Depreciation and amortization expense was $145,124  for the six months
ended June 30. 2000 and capital expenditures were approximately $107,187 in
2000.

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.

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 half of 2001, has discontinued the payment or conversion of
outstanding convertible debt securities and has deferred the payment of trade
and other liabilities to maintain its operations.  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 as an acquirer of other
businesses under the direction of a new management team and liquidate, modify,
extend or otherwise satisfy the indebtedness of the Registrant.  As of June
30, 2001, the Registrant is not conducting any revenue generating activities,
has a stockholders' deficit of approximately $4.4 million and has no
significant assets.

New management believes that it has the ability 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.

As of June 30, 2001, the Registrant has no committed sources of
financing. The Registrant is  continuing to explore  sources of financing in
order to fund the acquisition of businesses and provide the Registrant with
the ability to liquidate, modify, extend or otherwise satisfy the indebtedness
of the Registrant.

The Registrant believes that it will be successful in its efforts to
raise additional equity capital and\or other funding sources. If the
Registrant is successful in raising additional equity capital and\or other
financing sources, the percentage ownership of the then current stockholders
may be reduced and such reduction may be substantial. However, there is no
assurance that the Registrant's efforts will be successful.

While the Registrant's new management believes it will be successful in
arranging adequate lines of equity or debt financing to carry out its business
plan, there is no assurance of that occurring. In that event, the Registrant
would, in all likelihood, cease operations.

Impact of Inflation.

The Registrant is not aware of any inflationary pressures that have had
any significant impact on the Registrant's operations in the past and the
Registrant does not anticipate that inflationary factors will have a
significant impact on future operations.

Forward Looking Statements.

The foregoing Management's Discussion and Analysis of Financial
Condition and Results of Operations contains "forward looking statements"
within the meaning of Rule 175 under the Securities Act of 1933, as amended,
and Rule 3b-6 under 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."

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

PART II.

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 June 9, 2000, staff members of the Securities and Exchange Commission
("Commission") advised the Registrant that a recommendation would be made to
the Commission seeking authority to file a civil injunctive action in United
States District Court against the Registrant and Steve Bradford, the
Registrant's former President and Chief Executive Officer.  The recommended
action involves alleged violations of Section 10(b) of the Securities Exchange
Act of 1934, and Rule 10b-5, promulgated thereunder, in connection with
certain press releases issued by the Registrant prior to May 1999, regarding
the Life Foundation Trust.

The Registrant's legal counsel entered into settlement discussions with
SEC staff members upon being advised of the recommended enforcement action.
The SEC staff and the Registrant have agreed upon settlement agreement terms,
including that the Registrant would not admit or deny the allegations in the
SEC's Complaint, except as to jurisdiction. SEC staff recommendations to the
Commission, however, customarily undergo considerable review by various
Commission divisions, and are subject to the Commission's final approval.

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 Superior Court of the State of California for the
County of Los Angeles ("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.  In a hearing
on August 8, 2001, the Court ruled that Bloomberg's recovery was limited to
fees and expenses incurred in the second motion on summary judgment.  The
Registrant expects that the final award will range from $10,000 to $150,000.

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 June 30, 2001, merger
related liabilities include approximately $1,082,641 for this action. This
amount includes pre and post-judgment interest of approximately $272,157.

On April 15, 1997, Mr. 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 June 30, 2001, the Registrant had accrued $331,877
for this action, including post judgment interest of approximately $29,642.

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, the Registrant had accrued
$555,000 related to this action.  An additional $27,522 in interest was
accrued during the  six months ending June 30, 2001.

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  June 30, 2001, the Registrant has accrued $696,722,
including accrued interest of $63,811, 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 $13,400 the total judgment amounts to approximately
$98,074. This amount has been recorded in merger related liabilities.

The Company believes that its current financial position and cash
flows make it impossible for the Company to satisfy these judgments.
Nevertheless, the Company has entered into discussions with pre-merger
creditors to resolve outstanding disputes and pre-existing conditions the
Company assumed in its merger with SCMI.  The Company also plans to seek all
available remedies against Edwin B. Salmon, Jr., the Company'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.

Sales of Unregistered Securities.

During the three months ended June 30, 2001, the Registrant did not
issue any unregistered securities.

Use Proceeds.

Not applicable.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.

As of June 30, 2001, the Registrant is in violation of the payment terms
and\or conversion privileges contained in its short-term debt agreements with
related parties. The principal amount of borrowings that have not been paid
and\or converted into shares of the Registrant's common stock according to the
terms of the related agreements was approximately $544,000.  The number of
shares of the Registrant's common stock that such debt would have been
converted into as of June 30, 2001 was approximately 45,000,000 shares.

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 following report on Form 8-K was filed during the second quarter of
the fiscal year covered by this Form 10-Q:

A Form 8-K was filed on May 16, 2001 to report a change in the
Registrant's certifying accountant.

                                 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 20, 2001                       By: /s/  Mark Crist
                                             Mark Crist, President

                                EXHIBIT INDEX

Exhibit                        Description
No.

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).

3.1    Articles of Incorporation, dated December 21, 1987 (incorporated
       by reference to Exhibit 3.1 to the Form 10 filed on July 23, 1996).

3.2    Articles of Amendment to Articles of Incorporation, dated July 17,
       1990 (incorporated by reference to Exhibit 3.1 to the Form 10
       filed on July 23, 1996).

3.3    Articles of Amendment to Articles of Incorporation, dated December
       18, 1990 (incorporated by reference to Exhibit 3.1 to the Form 10
       filed on July 23, 1996).

3.4    Articles of Amendment to the Articles of Incorporation, dated
       April 3, 1992 (incorporated by reference to Exhibit 3.1 to the
       Form 10 filed on July 23, 1996).

3.5    Articles of Amendment to the Articles of Incorporation, dated
       August 29, 1994 (incorporated by reference to Exhibit 3.1 to the
       Form 10 filed on July 23, 1996).

3.6    Articles of Amendment to the Articles of Incorporation, dated July
       13, 1995 (incorporated by reference to Exhibit 3.1 to the Form 10
       filed on July 23, 1996).

3.7    Articles of Amendment to Articles of Incorporation, dated
       September 11, 2000 (incorporated by reference to Exhibit 99.1 to
       the Form S-8 filed on October 2, 2000).

3.8    Articles of Amendment to Articles of Incorporation, dated January
       3, 2001 (incorporated by reference to Exhibit 3.8 of the Form 10-K
       filed on April 17, 2001).

3.9    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)

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     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).

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).