MONOGENESIS CORPORATION
SEMI -ANNUAL REPORT TO SHAREHOLDERS
JUNE 30, 1998
George E. Clark
CERTIFIED PUBLIC ACCOUNTANT
6309 ROSWELL ROAD, NE
SUITE 2-B
ATLANTA, GEORGIA 30326
(404)256-1218 FAX (404)256-5634
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors and Stockholders
Monogenesis Corporation
Walker, West Virginia
I have compiled the accompanying statement of assets and liabilities
of Monogenesis Corporation, including the schedule of portfolio
investments, as of June 30, 1998, and the related statements of
operations, cash flows and changes in net assets for the six months
then ended, and the selected per share data
and ratios for each of the three years in the period then ended, in
accordance with standards established by the American Institute of
Certified Public Accountants.
A compilation is limited to presenting in the form of financial
statements information that is the representation of management. I
have not audited or reviewed the accompanying financial statements
and, accordingly, so not express an opinion or any other form of
assurance on them.
July 27, 1998
MONOGENESIS CORPORATION
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1998
ASSETS
Investments in securities, at value
identified cost $39,585.83 $277,029.93
Cash 44,972.95
Equipment, net of accumulated depreciation
of $1,098.21 6,223.19
Total Assets 328,226.07
LIABILITIES
Accounts payable 434.20
Loans from shareholders 136.60
Total Liabilities 570.80
NET ASSETS
Net assets (equivalent to $161.89 per share
based on 2,024 shares of capital stock
outstanding) (Note 5) $327,655.27
The accompanying notes to the Financial Statements are an integral
part of this statement.
"SEE ACCOUNTANT'S REPORT"
MONOGENESIS CORPORATION
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1998
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Investment income - net $(22,215.80)
Net realized gain on investments 20,613.30
Change in unrealized appreciation (255,682.45)
Net decrease in net assets resulting
from operations (257,284.95)
CAPITAL SHARE TRANSACTIONS 0
Net decrease in net assets (257,284.95
NET ASSETS
Beginning of the period 584,940.22
End of the period $327,655.27
The accompanying notes to the Financial Statements are an integral
part of this statement.
"SEE ACCOUNTANT'S REPORT"
MONOGENESIS CORPORATION
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998
INVESTMENT INCOME
Income
Dividends $ --
Interest 948.13
Other Income --
-------------
Total Income 948.13
EXPENSES
Officer salaries 6,000.00
Professional fees 5,407.30
Custodian, transfer agent and
distribution fees 10,458.15
Other administrative expenses 1,298.47
Total Expenses 23,163.93
INVESTMENT INCOME-NET (22,215.80)
Realized and Unrealized Gain on Investments
(Note 2)
Net realized gain on investments 20,613.30
Change in unrealized appreciation of
Investments for six months (255,682.45)
Net loss on investments (235,069.15)
Net decrease in net assets resulting
from operations $(257,284.95)
The accompanying notes to the Financial Statements are
an integral part of this statement.
"SEE ACCOUNTANT'S REPORT"
MONOGENESIS CORPORATION
STATEMENT OF CASH FLOW
FOR THE SIX MONTHS ENDED JUNE 30, 1998
CASH FLOW FROM OPERATION ACTIVITIES
Net decrease in net assets
from operations $(257,284.95)
Adjustments to reconcile net (decrease)
in net assets Resulting from
operations to net cash provided by
operating activities
Depreciation 366.07
Decrease in unrealized
appreciation of investment
securities 257,245.25
Increase in accounts payable 7.68
Net cash provided by (used in)
Operating activities 334.05
CASH FLOWS FROM FINANCING ACTIVITIES --
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of investments, net of
subsequent re-sales (22,690.80)
NET DECREASE IN CASH AND CASH EQUIVALENTS (22,356.75)
Cash balance, beginning of period 67,329.70
Cash balance, end of period $44,972.95
The accompanying notes to the Financial Statements are
an integral part of this statement.
"SEE ACCOUNTANT'S REPORT"
MONOGENESIS CORPORATION
SUPPLEMENTARY INFORMATION -- STATEMENT OF CHANGES IN SURPLUS
For the six months ended June 30, 1998
COMMON PAID-IN ACCUMULATED TOTAL
STOCK CAPITAL EARNINGS
Balance at beginning $20.39 $89,297.39 $3,228.03 92,545.81
Of year
Additional capital
Contributed -- --
Stock cancelled (.15) .15
Additional capital
Contributed --
Net income (loss) (2,388.64) (2,388.64)
___________ ___________ __________ _________
$20.24 $89,297.54 $ 839.39 $90.157.17
=========== =========== ========== =========
"SEE ACCOUNTANT'S REPORT"
MONOGENESIS CORPORATION
SUPPLEMENTARY INFORMATION -- SELECTED PER SHARE DATA AND RATIOS
FOR THE SIX MONTHS ENDED JUNE 30, 1998
1998 1997 1996
_________ _________ __________
PER SHARE DATA
Investment income $ .47 $ -- $ --
Expenses 11.45 10.10 19.03
Investment income-net
Additional contributions -- -- --
Distributions from
investment income-net -- -- --
Net realized & unrealized
gain (loss) on securities (114.01) 46.01 .13
Distributions from realized
gains on securities -- -- --
__________ _________ __________
Net increase/decrease
In net asset value (124.99) 36.04 (14.02)
Net asset value
Beginning of year 286.88 (9.11) 4.91
__________ __________ ________
End of year $161.89 $26.93 $(9.11)
========== =========== =========
Per share market value
End of period $ -- $ -- $ --
========== =========== ==========
Total investment return $ -- $ -- $ --
========== =========== ==========
RATIOS
Ratio of expenses to
Average net assets(%) -- -- --
Ratio of investment
Income-net to average
Net assets(%) -- -- --
Portfolio turnover
Ratio -- -- --
"SEE ACCOUNTANT'S REPORT"
MONOGENESIS CORPORATION
INVESTMENTS IN SECURITIES
JUNE 30, 1998
NUMBER
OF SHARES VALUE
COMON STOCKS -100%
PML, Inc. 725 $ 634.38
EXIGENT INTERNATIONAL, INC. 18,875 93,204.75
EXIGENT INTERNATIONAL, INC.
WARRANTS 1/30/2000 20,000 52,500.00
THT, INC. 6,000 22,690.80
TICE TECH, INC. 30,500 61,000.00
TICE TECH, INC. WARRANTS 188,000 47,000.00
----------
$277,029.93
===========
The accompanying notes to the Financial Statements are an
integral part of this statement.
"SEE ACCOUNTANT'S REPORT"
MONOGENESIS CORPORATION
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998
(1) SIGNIFICANT ACCOUNTING POLICIES
Monogenesis Corporation (the Company) is registered under the
Investment Company Act of 1940 as a non-diversified management
investment company. The Company's investment objectives as well as
the nature and risk of its investment transactions are set forth in
the Company's registration statement.
Depreciation - Equipment is depreciated using the straight-line
method over a ten- year period.
Accrual of expenses - It is the Company's policy to accrue items of
expense recognized in the current period, but not paid until the
subsequent period.
Security valuation - Investments in securities in ensuing public
companies are originally valued at cost until such time as the
securities are publicly traded. Securities traded on a national
securities exchange or reported on the NASDAQ national market are
stated at the last reported sales price on the day of valuation.
Other securities for which no sale was reported on that date are
stated at the last quoted bid price.
Security transaction and investments income - Investment
transactions are accounted for on the trade date. Gain or loss on
sales of securities and options is determined on the basis of
identified cost. Dividend income and distributions to shareholders
are recognized on the ex-dividend date, and interest income is
recognized on the accrual basis.
Federal income taxes - The Company does not qualify for the
preferred tax treatment of dividends paid to stockholders afforded
by Subchapter M of the Internal Revenue Code to most regulated
investment companies. No provision for income taxes is required
for this year as the net investment loss exceeded realized gain on
sales of securities.
"SEE ACCOUNTANT'S REPORT"
MONOGENESIS CORPORATION
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998
(2) INVESTMENT TRANSACTIONS
Purchases and sales of portfolio securities during the year were
$22,691 and $20,625, respectively. Net loss on investments for the
six months ended June 30, 1998, was $(235,069.15). That amount
represents the net decreases in value of the investments held
during the period and actual gains realized on sales of
investments. All investment decisions are made by the Company's
president. Purchases, when they occur, are made from funds
generated through additional contributions to Paid-In Capital.
(3) DIVIDENDS
The Company paid no dividends during the period. The Company only
distributes property dividends of stock that it requires in ensuing
public companies.
Such acquisitions of stock are made from Paid-In Capital.
(4) OFFICER / DIRECTOR COMPENSATION
The Company paid $6,000.00 in officer salaries during the period.
No fees were paid to directors.
(5) CAPITAL SHARE TRANSACTIONS
As of June 30, 1998, there were 3,000 shares of $.01 par value
stock
authorized, 2,024 shares issued and outstanding, and Paid-In
Capital aggregated $89,297.54
"SEE ACCOUNTANT'S REPORT"
