November 17, 1997
Dear Engex Shareholder,
We are pleased to submit our annual report for your Fund.
Our immediate investment philosophy is to continue to invest in emerging
growth companies and other undervalued or turnaround situations. We seek
opportunities that can appreciate in value and generate capital gains.
Our long-term goal is to seek majority stakes in new and small companies in
order to ultimately permit Engex to deregister as an investment company. While
the first step in this Plan, the acquisition of Research Devices, Inc. in 1992,
did not meet our original expectations, we will continue to look to acquire one
or more growth companies that may eventually permit us to deregister the Fund
and thus put Engex in a position to hopefully sell at an attractive multiple of
earnings.
As always, we appreciate the confidence of our loyal stockholders and will
continue to work to achieve the results you deserve and that we ourselves as
major stockholders would hope to produce.
Sincerely,
J. MORTON DAVIS
Chairman of the Board
President
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Shareholders and
Board of Directors of Engex, Inc.
We have audited the accompanying statement of assets and liabilities of
Engex, Inc., including the schedules of portfolio investments, and securities
sold, but not yet purchased, and net assets applicable to outstanding capital
shares as of September 30, 1997, the related statement of operations for the
year then ended, the statements of changes in net assets for each of the two
years in the period ended September 30, 1997, and selected per share data and
ratios for each of the five years in the period ended September 30, 1997. These
financial statements and per share data and ratios are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements and per share data and ratios based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and per share data
and ratios are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
September 30, 1997 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and selected per share data and
ratios referred to above present fairly, in all material respects, the financial
position of Engex, Inc. as of September 30, 1997, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and selected per share data and ratios for each of the
five years in the period then ended, in conformity with generally accepted
accounting principles.
As explained in Note 2, the financial statements include securities of and
advances to an investee valued at $605,990 (3.0% of total assets), which value
has been estimated by the Board of Directors in the absence of readily
ascertainable market values. We have reviewed the procedures used by the Board
of Directors in arriving at their estimate of value of such securities and
advances and have inspected underlying documentation and, in the circumstances,
we believe the procedures are reasonable and the documentation appropriate.
However, because of the inherent uncertainty of valuation, those estimated
values may differ significantly from the values that would have been used had a
ready market for the securities and advances existed, and the differences could
be material.
DAVID BERDON & CO. LLP
Certified Public Accountants
October 23, 1997
<PAGE>
ENGEX, INC.
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1997
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Investments in securities at value (identified cost--$11,977,364)
(Notes 1(a) and (c), and 8(b)) ................................................ $19,470,815
Investment in and advances to affiliate at value (identified
cost--$5,561,561) (Notes 1(a), 2, and 8(a)) ................................... 605,990
Due from broker for securities sold (Note 1(c)) ................................ 98,760
Other assets ................................................................... 27,846
-----------
TOTAL ASSETS ................................................................ $20,203,411
LIABILITIES:
Securities sold, but not yet purchased, at value (proceeds--$9,687)
(Notes 1(a) and (c), and 8(b)) ................................................ 10,412
Due to broker for securities purchased (Note 1(c)) ............................. 288,881
Accrued expenses (Note 3) ...................................................... 123,545
Loan payable (Notes 6, 7 and 8(a)) ............................................. 321,994
Payable to Research Devices, Inc. (Note 2) ..................................... 491,026
Current income taxes (Notes 1(b) and 5) ........................................ 2,005,596
Deferred income taxes (Notes 1(b) and 5) ....................................... 2,697,381
-----------
TOTAL LIABILITIES ........................................................... 5,938,835
-----------
COMMITMENT AND CONTINGENCIES (Note 8)
NET ASSETS APPLICABLE TO OUTSTANDING CAPITAL SHARES ............................. $14,264,576
===========
NET ASSET VALUE PER SHARE ....................................................... $14.60
======
NET ASSETS APPLICABLE TO OUTSTANDING CAPITAL SHARES:
Common stock--$.10 par value:
Authorized--2,500,000 shares, Issued--977,223 shares .......................... $ 97,722
Additional paid-in capital ..................................................... 9,669,680
Unrealized depreciation on investments ......................................... (577,643)
Undistributed net realized gain from investment transactions ................... 2,827,484
Undistributed net investment income ............................................ 2,247,333
-----------
NET ASSETS ...................................................................... $14,264,576
===========
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
<TABLE>
<CAPTION>
ENGEX, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
September 30, 1997
NUMBER OF
SHARES MARKET VALUE
--------- -------------------------------
<S> <C> <C> <C>
COMMON STOCK (130.94%):
Biotechnology (117.62%):
Enzo Biochemical, Inc.* ................................... 467,326 shs. $8,411,867
ICN Pharmaceuticals, Inc. ................................. 95,800 shs. 4,712,210
Interneuron Pharmaceuticals, Inc.* ........................ 247,500 shs. 2,970,000
Biocryst Pharmaceuticals, Inc.* ........................... 43,300 shs. 346,400
Ivax Corp.* ............................................... 28,200 shs. 336,652 $16,777,129
----------
Electronics (.35%):
Siliconix, Inc.* .......................................... 1,100 shs. 50,187
Environmental (5.73%):
U.S. Home & Garden, Inc.* ................................. 165,500 shs. 817,239
Healthcare (.44%):
Transworld Healthcare, Inc.* .............................. 6,500 shs. 62,159
Manufacturing (.85%):
Alyn Corp.* ............................................... 9,000 shs. 121,500
Media and Entertainment (1.81%):
Avenue Entertainment Group, Inc.* ......................... 27,600 shs. 238,050
Unitel Video, Inc.* ....................................... 3,000 shs. 20,064 258,114
----------
Medical Technology (.65%):
Advanced NMR Systems, Inc.* ............................... 270,900 shs. 93,190
Technology (2.44%):
Netvantage, Inc.* ......................................... 43,200 shs. 348,322
Telecommunications (1.05%):
Vimpel Communications--ADR* ............................... 3,600 shs. 150,300
----------
TOTAL INVESTMENT IN COMMON
STOCK (COST--$11,122,340) .............................. 18,678,140
UNITS (5.56%):
Advanced Aerodynamics & Structures, Inc.* ................. 72,400 shs. 552,050
First South Africa Corp.* ................................. 11,000 shs. 152,625
Ansan, Inc.* .............................................. 35,200 shs. 88,000
----------
TOTAL UNITS (COST--$855,024) ............................ 792,675
----------
TOTAL MARKETABLE SECURITIES (136.50%)
(COST--$11,977,364) .................................... 19,470,815
OTHER ASSETS, LESS LIABILITIES (36.50%) .................... (5,206,239)
-----------
NET INVESTMENT ASSETS (100.00%) ............................ $14,264,576
===========
</TABLE>
- ------------
* Nonincome-producing securities
The accompanying notes should be read in conjunctionwith this schedule.
<PAGE>
ENGEX, INC.
SCHEDULE OF SECURITIES SOLD, BUT NOT YET PURCHASED
September 30, 1997
NUMBER OF
SHARES MARKET VALUE
--------- -----------------
COMMON STOCK
Amazon.Com., Inc.* ...................... 200 shs. $10,412
-------
TOTAL SECURITIES SOLD,
BUT NOT YET PURCHASED
(PROCEEDS--$9,687) ................. $10,412
=======
- ------------
* Nonincome-producing securities
The accompanying notes should be read in conjunction with this schedule.
<PAGE>
<TABLE>
<CAPTION>
ENGEX, INC.
STATEMENT OF OPERATIONS
For The Year Ended September 30, 1997
INVESTMENT (LOSS):
<S> <C> <C>
INCOME:
Dividends (Note 2) .................................................... $4,169,104
Interest .............................................................. 15,122
Miscellaneous ......................................................... 41
----------
Total income ...................................................... $4,184,267
EXPENSES:
Custodian and transfer fees ........................................... 20,839
Professional fees ..................................................... 47,562
Shareholders' reports and printing .................................... 12,708
Directors' fees and expenses .......................................... 13,500
Other taxes ........................................................... 13,188
Insurance ............................................................. 40,200
Registration and filing fees .......................................... 7,475
Management fee (Note 3) ............................................... 142,609
Interest expense (Note 6) ............................................. 164,783
Miscellaneous ......................................................... 13,500
----------
Total expenses .................................................... 476,364
-----------
INVESTMENT INCOME BEFORE (BENEFIT) FOR INCOME TAXES ...................... 3,707,903
INCOME TAX (BENEFIT) (Notes 1(b) and 5) .................................. (149,085)
-----------
NET INVESTMENT INCOME .................................................... 3,856,988
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain from security transactions:
Proceeds from sales ................................................... 5,863,475
Cost of securities sold ............................................... 3,847,202
----------
2,016,273
Income tax provision (Notes 1(b) and 5) ................................. 253,745
----------
Net realized gain (Notes 1(c), 4 and 5) 1,762,528
Unrealized appreciation on investments:
Beginning of period ................................................... 9,316,697
End of period ......................................................... 2,537,155
----------
(6,779,542)
Income tax (benefit) (Notes 1(b) and 5) .................................. (62,115)
----------
NET (DECREASE) IN UNREALIZED APPRECIATION ................................ (6,717,427)
-----------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS ........................ (4,954,899)
-----------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................... $(1,097,911)
===========
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
<TABLE>
<CAPTION>
ENGEX, INC.
STATEMENTS OF CHANGES IN NET ASSETS
For The Years Ended September 30, 1997 and 1996
1997 1996
---------- ----------
FROM INVESTMENT ACTIVITIES:
<S> <C> <C>
Net investment income (loss) ......................................................... $ 3,856,988 $ (239,845)
Net realized gain (loss) on securities transactions (on average cost basis
$1,786,543 and ($182,214), respectively) (Notes 3 and 4) .......................... 1,762,528 (165,668)
(Decrease) increase in unrealized appreciation from investment activities ............ (6,717,427) 1,879,445
----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS ................................................... (1,097,911) 1,473,932
NET ASSETS--BEGINNING OF PERIOD ......................................................... 15,362,487 13,888,555
----------- -----------
NET ASSETS--END OF PERIOD (Including undistributed net investment
income (loss) of $2,247,333 and $(1,609,655), respectively) .......................... $14,264,576 $15,362,487
=========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
<PAGE>
ENGEX, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES
The Fund is registered under the Investment Company Act of 1940, as a
nondiversified, closed-end investment company (see Note 8(a)). The following is
a summary of significant accounting policies followed by the Fund in the
preparation of its financial statements:
(a) SECURITY VALUATION--Investments in securities traded on a national
securities exchange are valued at the last reported sales price on
September 30, 1997. Securities traded on the over-the-counter market
and listed securities for which no sale was reported on that date are
valued at the last reported bid price.
Securities sold, but not yet purchased, represent obligations of the
Company to deliver the specified security at the contracted price and
thereby create a liability to purchase the security at prevailing
future market prices. Accordingly, these transactions result in
off-balance sheet risk, as the Company's ultimate obligation to
satisfy the sale of securities sold, but not yet purchased, may exceed
the amount recognized in the financial statements.
Investments for which quotations are not readily available are valued
at fair value, as determined by the Board of Directors (see Note 2).
(b) FEDERAL INCOME TAXES--Commencing with the fiscal year ending September
30, 1993, the Fund no longer qualified under Subchapter M of the
Internal Revenue Code as a regulated investment company, and,
accordingly, is taxed as a regular corporation. The Fund will file a
consolidated federal income tax return which will include Research
Devices, Inc. ("RDI") through July 31, 1997, the date of the
recapitalization of RDI (see Note 2).
(c) OTHER--As is common in the industry, security transactions are
accounted for on the trade date the securities are purchased or sold.
Dividend income and distributions to shareholders are recorded on the
ex-dividend date.
(d) USE OF ACCOUNTING ESTIMATES--The preparation of financial statements
in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
NOTE 2. INVESTMENT IN AND ADVANCES TO
RESEARCH DEVICES, INC.
Effective December 31, 1992, the Fund purchased 85% of the outstanding
stock of RDI, a privately-held corporation principally engaged in the
exploitation of semi-conductor manufacturing technology. On November 7, 1996,
the Fund exercised its option to acquire the remaining 15% of the stock of RDI
for $615,407.
On November 7, 1996, RDI effected a patent and technology sale to Shinkawa
Ltd. (Shinkawa"), a semiconductor assembly equipment manufacturer, which yielded
approximately $7.3 million to RDI. On July 31, 1997, a recapitalization was
effected, under which RDI is now owned by the Fund, Shinkawa and members of
RDI's current management, each of which holds a minority interest in RDI. The
Fund owns approximately 5% of the voting common stock and approximately 52% of
the non-voting common stock of RDI after the recapitalization. The Fund invested
an additional $593,000 in connection with the recapitalization. RDI has also
entered into a licensing arrangement with Shinkawa.
The Fund received dividends from RDI in the amount of $4,100,216 during the
year ended September 30, 1997. RDI had net income of approximately $6,000,000,
including the patent and technology sale, for the year ended September 30, 1997.
Under a tax-sharing agreement between RDI and the Fund, RDI has paid to the
Fund its share of the consolidated federal income tax liability, which
approximated $1,900,000 for the year ended September
<PAGE>
ENGEX, INC.
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
30, 1997. The Fund has also agreed to reimburse RDI for RDI's state tax
liability of $491,026 which had been previously advanced to the Fund.
The Fund's investment in RDI has been valued by the Board of Directors,
after considering certain pertinent information, the financial statements of
RDI, and the size of the holdings. At September 30, 1997, the Board of Directors
has valued the Fund's investment in and advances to RDI, as follows:
SECURITY MARKET VALUE
-------- ------------
Voting common stock--
5,745 shares .......................................... $ --
Non voting common stock--
524,500 shares ......................................... --
Advance ................................................. 605,990
--------
$605,990
========
NOTE 3. INVESTMENT ADVISOR AND TRANSACTIONS WITH AFFILIATED PERSONS
The Fund has entered into an investment advisory agreement (the
"Agreement") with American Investors Advisors, Inc. ("Advisors"), which is
wholly owned by an officer of the Fund. Certain officers of Advisors are also
officers of the Fund. Under this agreement, Advisors will serve as an investment
advisor of the Fund for a fee computed at an annual rate of 1.0% of the Fund's
average weekly net assets. For the year ended September 30, 1997, Advisors
earned a management fee of $142,609, of which $56,545 was due to Advisors at
September 30, 1997 and is included in accrued expenses in the accompanying
statement of assets and liabilities.
For the year ended September 30, 1997, D.H. Blair & Co., Inc. received
brokerage commissions of $29,522 on purchases and sales of Fund investments.
D.H. Blair & Co., Inc. is wholly owned by children of an officer of the Fund,
sons-in-laws of an officer of the Fund and certain members of D.H. Blair & Co.,
Inc's management team.
NOTE 4. PORTFOLIO TRANSACTIONS
The following summarizes the securities transactions by the Fund for the
year ended September 30, 1997:
Purchases .......................................... $7,173,927
==========
Sales .............................................. $5,863,475
==========
Short sales ........................................ $ 9,687
==========
Net realized gain .................................. $1,762,528
==========
The Fund uses the specific identification method of accounting for the cost
of securities sold for both federal income tax and reporting purposes.
Therefore, for federal income tax purposes, the identified cost of investments
owned at September 30, 1997 was the same as the total cost of investments. Had
the average cost basis been used for financial statement purposes, net realized
gain from securities transactions would have been increased and net unrealized
appreciation would have been decreased by $24,015.
NOTE 5. INCOME TAXES
The Fund provides deferred federal, state and local income taxes on
unrealized appreciation on investments, based on the regular corporate tax
rates.
The following is a summary of the components of the Fund's income tax
provision (benefit) at September 30, 1997:
Current:
Federal .............................................. $ 82,848
State and local ...................................... 21,812
--------
$104,660
========
Deferred:
Federal .............................................. $(58,664)
State and local (3,451
--------
$(62,115)
========
<PAGE>
ENGEX, INC.
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
The effective tax rate for the Fund is reconcilable to the federal
statutory tax rate, as follows:
Statutory rate (benefit) ................................. (34.0%)
Increase in nontaxable unrealized
depreciation on investment in
RDI ..................................................... 159.1
Nontaxable dividend income
received from RDI ....................................... (132.1)
Utilization of actual net operating
loss and capital loss
carryforwards ........................................... 9.5
State and local income
taxes--net of federal
income tax benefit ...................................... 1.5
-----
4.0%
=====
NOTE 6. BORROWINGS
Loans during the year were made at a negotiated rate between the Fund and
the Fund's custodian broker. The interest paid during the year ranged from a
rate of 6.5% to 6.75% per annum. The weighted average interest rate during the
year was 6.59%. The maximum loan outstanding and the weighted average amount of
loans (computed on a daily basis) during the twelve-month period were $5,306,871
and $2,240,429, respectively. The loans were collateralized by the Fund's
investment portfolio.
NOTE 7. FAIR VALUE OF FINANCIAL INSTRUMENTS
Management has estimated that the carrying amount of the Fund's loan
payable approximates the fair value based upon its analysis of the credit risk
inherent in the loan.
Fair value estimates are made at a specific point in time, are subjective
in nature, and involve uncertainties and matters of significant judgment.
Settlement of the Fund's debt obligations at fair value may not be possible and
may not be a prudent management decision to enter.
NOTE 8. CONCENTRATIONS OF CREDIT RISK
(a) The Fund's portfolio has become less diversified as a result of its
investment in RDI (see Note 2). With decreased diversification, the Fund's
assets may be subject to greater risk of loss, because the effect of any
negative performance realized on any one investment in which the Fund is
concentrated will have a greater impact on the Fund. The Fund presently intends
to seek investment opportunities in one or more additional companies in which it
would acquire a controlling interest. While any such further acquisitions are
likely to bring the Fund closer to its expressed intention of seeking to
deregister under the Investment Company Act of 1940, they are likely to require
a substantial investment of the Fund's assets, and a further concentration of
the Fund's investments in particular companies or industries, which will
increase the risk of loss that may be experienced by the Fund from the negative
results or financial condition of any particular company and/or industry.
The Fund has borrowed funds in connection with its investment portfolio,
and plans to continue to do so, and to consider various alternative means of
doing so which may be available to it. Such borrowings are presently limited by
certain asset coverage requirements under the Investment Company Act of 1940. By
increasing the amount of such leverage utilized by the Fund, opportunities may
be enhanced, but certain risks are created, including a higher volatility of the
net asset value of the Fund's common stock and a potentially higher volatility
in its market value. When monies are borrowed by the Fund, creditors have a
fixed dollar claim on the Fund's assets and income, which is prior to any claims
of the stockholders; therefore, any decline in the value of the Fund's assets or
the income it receives will cause the net asset value of the Fund's stock and
any income available to it to decline more sharply than if there were no such
prior claims.
(b) As of September 30, 1997, all of the Fund's investments in securities
were held with one broker, the Fund's custodian.
<PAGE>
<TABLE>
<CAPTION>
ENGEX, INC.
SCHEDULE 1
SUPPLEMENTARY INFORMATION--SELECTED PER SHARE DATA AND RATIOS
Selected data for each share of Capital Stock outstanding throughout each year:
YEARS ENDED SEPTEMBER 30,
---------------------------------------------------------------------------
1997(1) 1996(1) 1995(1) 1994(1) 1993(1)
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Investment income ........................... $ 4.28 $ .14 $ .18 $ .13 $ .10
-------- -------- -------- -------- --------
Expenses:
Interest ................................ .17 .21 .34 .18 .03
Other ................................... .31 .31 .22 .40 .33
-------- -------- -------- -------- --------
Total expenses ....................... .48 .52 .56 .58 .36
-------- -------- -------- -------- --------
Investment income (loss) before income tax
(benefit) ............................... 3.80 (.38) (.38) (.45) (.26)
-------- -------- -------- -------- --------
Deferred and current income tax (benefit) ... (.15) (.14) (.14) (.16) (.11)
-------- -------- -------- -------- --------
Net investment income (loss) ................ 3.95 (.24) (.24) (.29) (.15)
-------- -------- -------- -------- --------
Realized and unrealized gain (loss) before
provision (benefit) for income taxes .... (4.87) 2.87 5.98 (3.91) 4.88
Deferred and current income tax provision
(benefit) .................................. (.20) 1.12 1.98 (1.31) 1.59
-------- -------- -------- -------- --------
Net realized and unrealized gain (loss) ..... (5.07) 1.75 4.00 (2.60) 3.29
-------- -------- -------- -------- --------
Net increase (decrease) in net asset value .. (1.12) 1.51 3.76 (2.89) 3.14
Net asset value:
Beginning of year ....................... 15.72 14.21 10.45 13.34 10.20
-------- -------- -------- -------- --------
End of year ............................. $ 14.60 $ 15.72 $ 14.21 $ 10.45 $ 13.34
======== ======== ======== ======== ========
Number of shares outstanding at end of year . 977,223 977,223 977,223 977,223 977,223
======== ======== ======== ======== ========
Ratios:
Expenses to average net assets .......... 3.32% 3.32% 4.90% 4.81% 2.99%
Net investment increase (loss) to average
net assets ............................ 26.88% (1.55%) (2.23%) (2.40%) (1.27%)
Portfolio turnover ...................... 26.48% 4.29% .40% 7.56% 30.97%
</TABLE>
- --------------
(1) During these years, the Fund did not pay dividends from net investment
company income or make any distributions of net realized gains from
securities transactions.
The accompanying notes should be read in conjunction with
this supplementary schedule.
<PAGE>
ENGEX, INC.
ADDITIONAL INFORMATION
The Fund presently intends to seek investment opportunities in one or more
companies in which it would acquire a controlling interest. While any such
acquisitions are likely to bring the Fund closer to its expressed intention of
seeking to deregister under the Investment Company Act of 1940, they are likely
to require a substantial investment of the Fund's assets, and a further
concentration of the Fund's investments in particular companies or industries
which will increase the risk of loss that may be experienced by the Fund from
the negative results or financial condition of any particular company and/or
industry.
The Fund has borrowed funds in connection with its investment portfolio,
and plans to continue to do so, and to consider various alternative means of
doing so which may be available to it. Such borrowings are presently limited by
certain asset coverage requirements under the Investment Company Act of 1940. By
increasing the amount of such leverage utilized by the Fund, opportunities may
be enhanced, but certain risks are created, including a higher volatility of the
net asset value of the Fund's common stock and a potentially higher volatility
in its market value. When monies are borrowed by the Fund, creditors have a
fixed dollar claim on the Fund's assets and income which is prior to any claims
of the stockholders; therefore, any decline in the value of the Fund's assets or
the income it receives will cause the net asset value of the Fund's stock and
any income available to it to decline more sharply than if there were no such
prior claims.
<PAGE>
DIRECTORS
Jerome Fisch
Judah Feinerman
Leonard Toboroff
J. Morton Davis
OFFICERS
J. Morton Davis, Chairman of the Board
and President
David Nachamie, Secretary
Martin Bell, Assistant Secretary
Brian Wasserman, Treasurer
Gilbert Jackson, Assistant Treasurer
Bruce Berger, Vice President
CUSTODIAN
Prudential Securities Inc.
1 NY Plaza, New York, N.Y. 10292
TRANSFER AGENT
Continental Stock Transfer & Trust Co.
2 Broadway, New York, N.Y. 10017
212-509-4000
INDEPENDENT ACCOUNTANTS
David Berdon & Co. LLP
415 Madison Ave., New York, N.Y. 10017
ENGEX, INC.
44 Wall Street
New York, N.Y. 10005
212-495-4200
ENGEX, INC.
FINANCIAL STATEMENTS
AND
ANNUAL REPORT
YEAR ENDED
SEPTEMBER 30, 1997
ENGEX, INC. IS LISTED ON THE
AMERICAN STOCK EXCHANGE (AMEX)
SYMBOL EGX.
