MONOGENESIS CORPORATION
SEMI-ANNUAL REPORT TO SHAREHOLDERS
JUNE 30, 1999
George E. Clark
CERTIFIED PUBLIC ACCOUNTANT
6309 ROSWELL ROAD, NE SUITE 2-B
ATLANTA, GEORGIA 30326
Phone (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, 1999, and the related statements of
operations, cash flows, and changes in net assets for the year 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, do not express an opinion or any other form of assurance on
them.
George E. Clark
July 21, 1999
MONOGENESIS CORPORATION
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
ASSETS
Investments in securities,
at value-identified cost $89,952.44 $113,146.16
Cash 31,279.86
Equipment, net of accumulated
depreciation of $1,098.21 5,857.12
-----------
Total Assets 150,283.14
LIABILITIES
Accounts payable -
Loans from shareholders 136.60
-----------
Total Liabilities 136.60
-----------
NET ASSETS
Net assets (equivalent to $73.90 per share
based on 2,032 shares of capital stock
outstanding) (Note 5) $150,146.54
===========
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, 1999
INVESTMENT INCOME
Income
Dividends $ --
Interest 129.05
Other Income --
----------
Total Income 129.05
EXPENSES
Officer salaries 6,000.00
Professional fees 8,150.50
Custodian, transfer agent and distribution fees 16,359.19
Other administrative expenses 42,812.17
----------
Total Expenses 73,321.86
----------
INVESTMENT INCOME-NET (73,192.81)
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS (Note 2)
Net realized gain on investments 17,708.17
Change in unrealized appreciation of investments
for the year 310.49
----------
Net gain on investments 18,018.66
----------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS (55,174.15)
==========
The accompanying notes to the Financial Statements are
an integral part of this statement.
"SEE ACCOUNTANT'S REPORT"
MONOGENESIS CORPORATION
STATEMENT OF CASH FLOWS
-------------------------
FOR THE SIX MONTHS ENDED JUNE 30, 1999
CASH FLOW FROM OPERATION ACTIVITIES
Net increase in net assets $( 55,174.15)
Adjustments to reconcile net (decrease) in net
assets resulting from operations to net cash
provided by operating activities
Increase in unrealized appreciation of
investment securities 310.49
Decrease in accounts payable 965.92
----------
Net cash provided by (used in)
operating activities 56,450.56
CASH FLOWS FROM FINANCING ACTIVITIES --
CASH FLOWS FROM INVESTING ACTIVITIES
Net proceeds from sales of investments 4,326.08)
Capital share transactions 42,500.00
----------
46,826.08
NET DECREASE IN CASH AND CASH EQUIVALENTS ( 9,624.48)
CASH BALANCE, BEGINNING OF PERIOD 40,904.34
----------
CASH BALANCE, END OF YEAR $31,279.86
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, 1999
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Investment income - net $(73,192.81)
Net realized gain on investments 17,708.17
Change in unrealized appreciation ( 310.49)
------------
Net decrease in net assets
resulting from operations (55,174.15)
CAPITAL SHARE TRANSACTIONS 42,500.00
------------
Net decrease in net assets ( 12,674.15)
NET ASSETS
Beginning of the period 162,820.69
------------
End of the period $ 150,146.54
============
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, 1999
COMMON PAID-IN ACCUMULATED
STOCK CAPITAL EARNINGS TOTAL
-------- ------------ ------------ ----------
Balance at
beginning of year $ 20.32 $151,886.11 $ (11,968.82) $139,937.61
Additional stock
Issued --- --- --- ---
Stock cancelled --- --- --- ---
Additional capital
contributed --- 42,500.00 --- 42,500.00
Net income (loss) --- --- (55,484.64) (55,484.64)
-------- ------------ ------------ ----------
Balance at
June 30, 1999 $ 20.32 $194,384.11 $ (67,453.46) $126,952.97
========== =========== =========== ==========
The accompanying Notes to the Financial Statements are
an integral part of this statement.
"SEE ACCOUNTANT'S REPORT"
MONOGENESIS CORPORATION
SUPPLEMENTARY INFORMATION -- SELECTED PER SHARE DATA AND RATIOS
FOR THE PERIOD ENDED JUNE 30
1999 1998 1997
-------- -------- --------
PER SHARE DATA
Investment income $ .07 $ .47 $ ---
Expenses 36.09 11.45 10.10
-------- -------- --------
Investment income-net (36.02) (10.98) (19.03)
Additional contributions --- --- ---
Distributions from
investment income-net --- --- ---
Net realized & unrealized
gain (loss) on securities 29.79 (114.01) 46.14
Distributions from realized
gains on securities --- --- ---
- -------- -------- --------
Net increase/decrease in
net asset value ( 6.23) (124.99) (36.04)
Net asset value:
Beginning of year 80.13 286.88 ( 9.11)
-------- -------- --------
End of Year $ 73.90 $161.89 $ 26.93
======== ======== ========
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, 1999
NUMBER
OF SHARES VALUE
--------- -----------
COMMON STOCKS - 100%
Healthcare - 1%
PML,Inc. 725 $ 340.03
Computer Software - 86%
Exigent International, Inc. 11,375 47,991.13
Exigent International, Inc.
Warrants 1/30/2000 9,600 12,000.00
Micro-Integration Corp. 10,000 13,750.00
Engineering - 14%
Tice Technology, Inc. 30,500 38,125.00
Tice Technology, Inc.
Warrants 188,000 940.00
-----------
$113,146.16
===========
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, 1999
(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 there was a net
loss for tax purposes.
"SEE ACCOUNTANT'S REPORT"
MONOGENESIS CORPORATION
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
(2) INVESTMENT TRANSACTIONS
Purchases and sales of portfolio securities during the year were $0 and
$20,625, respectively. Net gain on investments for the six months ended
June 30, 1999, was $18,018.66. That amount represents the net decrease
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 year. The Company only
distributes property dividends of stock that it acquires in ensuing public
companies. Such acquisitions of stock are made from Paid-In Capital;
therefore, ensuing stock dividends are charged to Paid-In Capital.
(4) OFFICER / DIRECTOR COMPENSATION
The Company paid officer salaries of $6,000 during the period. $500 in
director fees were paid to one director.
(5) CAPITAL SHARE TRANSACTIONS
As of June 30, 1999, there were 3,000 shares of $.01 par value stock
authorized, 2,032 shares issued and outstanding, and Paid-In
Capital aggregated $194,386.11
"SEE ACCOUNTANT'S REPORT"
