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MONOGENESIS CORPORATION
SEMI-ANNUAL REPORT TO SHAREHOLDERS
JUNE 30,2000
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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
of 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, 2000, 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, do not express
an opinion or any other form of assurance on them.
George Clark
August 23, 2000
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MONOGENESIS CORPORATION
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000
ASSETS
Investments in securities,
at value-identified cost $11,203.51 $ 6,331.30
Cash 2,761.75
Equipment, net of accumulated
depreciation of $2,562.49 4,758.91
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Total Assets 13,851.96
LIABILITIES
Accounts payable 7,183.74
Loans from shareholders 136.60
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Total Liabilities 7,320.34
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NET ASSETS
Net assets (equivalent to $3.16 per share
based on 2,070 shares of capital stock
outstanding) (Note 5) $ 6,531.62
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The accompanying notes to the Financial Statements are
an integral part of this statement.
"SEE ACCOUNTANT'S REPORT"
<PAGE>
MONOGENESIS CORPORATION
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000
INVESTMENT INCOME
Income
Dividends $ --
Interest 32.41
Other Income --
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Total Income 32.41
EXPENSES
Officer salaries 4,000.00
Director's fees --
Professional fees 6,950.18
Custodian, transfer agent and distribution fees 6,959.96
Other administrative expenses 46,705.85
Depreciation --
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Total Expenses 64,615.99
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INVESTMENT INCOME-NET (64,583.58)
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REALIZED AND UNREALIZED GAIN ON INVESTMENTS (Note 2)
Net realized loss on investments 202.14
Change in unrealized appreciation of investments
for the six months (3,650.81)
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Net gain on investments 3,448.67
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NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (61,134.91)
============
The accompanying notes to the Financial Statements are
an integral part of this statement.
"SEE ACCOUNTANT'S REPORT"
<PAGE>
MONOGENESIS CORPORATION
STATEMENT OF CASH FLOWS
-----------------------
FOR THE SIX MONTHS ENDED JUNE 30, 2000
CASH FLOW FROM OPERATION ACTIVITIES
Net decrease in net assets from operations $(61,134.91)
Adjustments to reconcile net (decrease) in
net assets resulting from operations to net
cash provided by operating activities
Depreciation 366.10
Increase in unrealized appreciation of
investment securities (3,650.81)
Increase in accounts payable 6,737.34
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Net cash provided by (used in)
operating activities (57,682.28)
CASH FLOWS FROM FINANCING ACTIVITIES ---
CASH FLOWS FROM INVESTING ACTIVITIES
Net proceeds from sales of investments 21,492.98
Capital share transactions 12,399.85
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33,892.83
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NET DECREASE IN CASH AND CASH EQUIVALENTS (23,789.45)
CASH BALANCE, BEGINNING OF PERIOD 26,551.20
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CASH BALANCE, END OF YEAR $ 2,761.75
===========
The accompanying notes to the Financial Statements are
an integral part of this statement.
"SEE ACCOUNTANT'S REPORT"
<PAGE>
MONOGENESIS CORPORATION
STATEMENT OF CHANGES IN NET ASSETS
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FOR SIX MONTHS ENDED JUNE 30, 2000
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Investment income - net $ (64,583.58)
Net realized gain on investments (202.14)
Change in unrealized appreciation 3,650.81
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Net decrease in net assets
resulting from operations (61,134.91)
CAPITAL SHARE TRANSACTIONS 12,399.85)
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Net decrease in net assets (48,735.06)
NET ASSETS
Beginning of the period 55,266.68
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End of the period $ 6,531.62
============
The accompanying notes to the Financial Statements are
an integral part of this statement.
"SEE ACCOUNTANT'S REPORT"
<PAGE>
MONOGENESIS CORPORATION
SUPPLEMENTARY INFORMATION -- STATEMENT OF CHANGES IN SURPLUS
------------------------------------------------------------
FOR THE SIX MONTHS ENDED JUNE 30, 2000
COMMON PAID-IN ACCUMULATED
STOCK CAPITAL EARNINGS TOTAL
------- ------------ ------------- ------------
Balance at
beginning of year $ 20.50 $194,385.93 $(130,616.73) $ 63,789.70
Additional stock
Issued .20 (.20) ---
Stock cancelled ---
Additional capital
Contributed 12,399.85 12,399.85
Net income (loss) ( 48,735.06) (48,735.06)
------- ----------- ------------ -----------
Balance at
June 30, 2000 $ 20.70 $206,785.58 $(179,351.79) $ 27,454.49
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The accompanying Notes to the Financial Statements are
an integral part of this statement.
"SEE ACCOUNTANT'S REPORT"
<PAGE>
MONOGENESIS CORPORATION
SUPPLEMENTARY INFORMATION -- SELECTED PER SHARE DATA AND RATIOS
FOR THE SIX MONTH PERIODS ENDING:
2000 1999 1998
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PER SHARE DATA
Investment income $ .02 $ .07 $ .47
Expenses 31.48 36.09 11.45
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Investment income-net (31.46) (36.02) (10.98)
Additional contributions 5.99 --- ---
Distributions from
investment income-net --- --- ---
Net realized & unrealized
gain (loss) on securities 1.67 29.79 (114.01)
Distributions from realized
gains on securities --- --- ---
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Net increase/decrease in
net asset value (23.80) (6.23) (124.99)
Net asset value:
Beginning of year 26.96 80.13 286.88
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End of Year $ 3.16 $ 73.90 $ 161.89
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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"
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MONOGENESIS CORPORATION
INVESTMENTS IN SECURITIES
-------------------------
JUNE 30, 2000
NUMBER
OF SHARES VALUE
--------- ----------
COMMON STOCKS - 100%
Healthcare - 1%
PML, Inc. 100 $ 75.00
Computer Software - 86%
Exigent International, Inc. 100 256.30
Engineering - 14%
Tice Technology, Inc. 8,000 6,000.00
Tice Technology, Inc.
Warrants 188,000 -0-
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$ 6,331.00
==========
The accompanying notes to the Financial Statements are
an integral part of this statement.
"SEE ACCOUNTANT'S REPORT"
<PAGE>
MONOGENESIS CORPORATION
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2000
(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 traded in the over-the-counter market and listed
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"
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MONOGENESIS CORPORATION
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(2) INVESTMENT TRANSACTIONS
Purchases and sales of portfolio securities during the period were $0 and
$21,492, respectively. Net loss on investments for the six months ended June 30,
2000, was $(202.14). 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 period. 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 $4,000 during the period. No fees were paid to directors.
(5) CAPITAL SHARE TRANSACTIONS
As of June 30, 2000, there were 3,000 shares of $.01 par value stock authorized,
2,070 shares issued and outstanding, and Paid-In Capital aggregated $206,785.58.
"SEE ACCOUNTANT'S REPORT"
