MONOGENESIS CORPORATION
ANNUAL REPORT TO SHAREHOLDERS
DECEMBER 31, 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
of Monogenesis Corporation
Walker, West Virginia
I have audited the accompanying statement of assets and liabilities
of Monogenesis Corporation, including the schedule of portfolio
investments, as of December 31, 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. These financial statements and per share
data and ratios are the responsibility of the Company's management.
My responsibility is to express an opinion on these financial statements
and per share data and ratios based on my audit.
I conducted my audit in accordance with generally accepted auditing
standards. Those standards require that I plan and perform the audit to
obtain reasonable assurance about whether the financial statements 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 December 31, 1999, by correspondence with the custodian and broker.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. I believe that my audit provides
a reasonable basis for my opinion.
In my opinion, the financial statements and selected per share data and
ratios referred to above present fairly, in all material respects, the
financial position of Monogenesis Corporation as of December 31, 1999, and
the results of its operations, its cash flows, and the changes in its 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 conformity
with generally accepted accounting principles.
February 17, 2000
George E. Clark
MONOGENESIS CORPORATION
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
ASSETS
Investments in securities,
at value-identified cost $32,696.37 $ 24,173.50
Cash 26,551.20
Equipment, net of accumulated
depreciation of $2,196.42 5,124.98
-----------
Total Assets 55,849.68
LIABILITIES
Accounts payable 444.40
Loans from shareholders 136.60
-----------
Total Liabilities 583.00
-----------
NET ASSETS
Net assets (equivalent to $26.96 per share
based on 2,050 shares of capital stock
outstanding) (Note 5) $ 55,266.68
===========
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 YEAR ENDED DECEMBER 31, 1999
INVESTMENT INCOME
Income
Dividends $ --
Interest 360.56
Other Income --
----------
Total Income 360.56
EXPENSES
Officer salaries 12,000.00
Director's fees 500.00
Professional fees 10,826.10
Custodian, transfer agent and distribution fees 36,374.02
Other administrative expenses 90,099.88
Depreciation 732.14
----------
Total Expenses 150,532.14
----------
INVESTMENT INCOME-NET (150,171.58)
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS (Note 2)
Net realized gain on investments 31,523.67
Change in unrealized appreciation of investments
for the year (31,405.60)
----------
Net gain on investments 118.07
----------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS (150,053.51)
==========
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 YEAR ENDED DECEMBER 31, 1999
CASH FLOW FROM OPERATION ACTIVITIES
Net decrease in net assets $(150,053.51)
Adjustments to reconcile net (decrease) in net
assets resulting from operations to net cash
provided by operating activities
Depreciation 732.14
Decrease in unrealized appreciation of
investment securities 31,405.60
Decrease in accounts payable (519.52)
----------
Net cash provided by (used in)
operating activities (118,435.29)
CASH FLOWS FROM FINANCING ACTIVITIES ---
CASH FLOWS FROM INVESTING ACTIVITIES
Sale of investments, net of subsequent purchases 61,582.15
Capital share transactions 42,500.00
----------
NET DECREASE IN CASH AND CASH EQUIVALENTS (14,353.14)
CASH BALANCE, BEGINNING OF YEAR 40,904.34
----------
CASH BALANCE, END OF YEAR $26,551.20
==========
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 YEARS ENDED DECEMBER 31, 1999 AND 1998
1999 1999
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Investment income - net $(150,171.58) $(70,746.29)
Net realized gain on investments 31,523.67 56,281.58
Change in unrealized appreciation (31,405.60) (470,244.07)
----------- ----------
Net increase in net assets
resulting from operations (150,053.51) (484,708.78)
CAPITAL SHARE TRANSACTIONS 42,500.00 62,588.65)
----------- -----------
Net increase (decrease)
in net assets (107,553.51) (422,120.13)
NET ASSETS
Beginning of the year 162,820.19 584,940.32
----------- -----------
End of the year $ 55,266.68 $162,820.19
=========== ===========
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 YEAR ENDED DECEMBER 31, 1999
COMMON PAID-IN ACCUMULATED
STOCK CAPITAL DEFICIT TOTAL
-------- ------------ ------------ ----------
Balance at
beginning of year $ 20.32 $151,886.11 $ (11,968.82) $139,937.61
Additional stock
Issued --- ---
Stock issued .18 (.18) ---
Additional capital
contributed 42,500.00 42,500.00
Net income (loss) (118,647.91) (118,647.91)
-------- ------------ ------------ ----------
Balance at
end of year $ 20.50 $194,385.93 $(130,616.73) $ 63,789.70
========== =========== =========== ==========
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 YEARS ENDED DECEMBER 31
1999 1998 1997
-------- -------- --------
PER SHARE DATA
Investment income $ .17 $ .62 $ .14
Expenses 73.43 35.43 21.82
-------- -------- --------
Investment income-net (73.26) (34.81) (21.68)
Additional contributions 20.74 31.79 ---
Distributions from
investment income-net --- --- ---
Net realized & unrealized
gain (loss) on securities .06 203.73 317.67
Distributions from realized
gains on securities --- --- ---
- -------- -------- --------
Net increase/decrease in
net asset value ( 52.47) (206.75) 295.99)
Net asset value:
Beginning of year 79.43 286.88 (9.11)
-------- -------- --------
End of Year $ 26.96 $ 80.13 $286.88
======== ======== ========
Per share market value:
End of period $ --- $ --- $ ---
======== ======== ========
Total investment return $ --- $ --- $ ---
======== ======== ========
RATIOS
Ratio of expenses to
average net assets (%) 139 20 16
Ratio of investment
income-net to
average net assets (%) --- --- ---
Portfolio turnover ratio --- --- ---
"SEE ACCOUNTANT'S REPORT"
MONOGENESIS CORPORATION
INVESTMENTS IN SECURITIES
-------------------------
DECEMBER 31, 1999
NUMBER
OF SHARES VALUE
--------- -----------
COMMON STOCKS - 100%
Healthcare - 1%
PML,Inc. 725 $ 333.50
Computer Software - 71%
Exigent International, Inc. 4,375 17,228.75
Food - 15% 2,200 3,575.00
Engineering - 12%
Tice Technology, Inc. 8,000 3,000.00
Tice Technology, Inc.
Warrants 188,000 -
-----------
$ 24,173.50
===========
The accompanying notes to the Financial Statements are
an integral part of this statement.
"SEE ACCOUNTANT'S REPORT"
MONOGENESIS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 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
DECEMBER 31, 1999
(2) INVESTMENT TRANSACTIONS
Purchases and sales of portfolio securities during the year were $12,820
and $74,402, respectively. Net gain on investments for the year ended
December 31, 1999, was $118.07. 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 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 $12,000 during the year. $500 in
director fees were paid to one director.
(5) CAPITAL SHARE TRANSACTIONS
As of December 31, 1999, there were 3,000 shares of $.01 par value stock
authorized, 2,050 shares issued and outstanding, and Paid-In
Capital aggregated $194,385.93
"SEE ACCOUNTANT'S REPORT"
GEORGE E. CLARK
Certified Public Accountant
309 Roswell Road NE, Suite 2-B
Atlanta, Georgia 30328
Phone (404) 256-1218 FAX (404) 256-5634
February 18, 2000
Board of Directors and Stockholders
of Monogenesis Corporation
Walker, West Virginia
In planning and performing my audit of the financial statements of
Monogenesis Corporation for the year ended December 31, 1999, I
considered its internal control structure, including procedures for
safeguarding securities, in order to determine my auditing procedures
for the purpose of expressing my opinion on the financial statements
and to comply with the requirements of Form N-SAR, not to provide
assurance on the internal control structure.
The management of Monogenesis Corporation is responsible for
establishing and maintaining an internal control structure. In
fulfilling this responsibility, estimates and judgments by management
are required to assess the expected benefits and related costs of
internal control structure policies and procedures. Two of the
objectives of an internal control structure are to provide management
with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and
that transactions are executed in accordance with management's
authorization and recorded properly to permit preparation of financial
statements in conformity with generally accepted accounting principles.
Because of inherent limitations in any internal control structure,
errors or irregularities may occur and not be detected. Also,
projection of any evaluation of the structure to future periods is
subject to the risk that it may become inadequate because of changes
in conditions or that the effectiveness of the design and operation may
deteriorate.
Our consideration of the internal control structure would not
necessarily disclose all matters in the internal control structure
that might be material weaknesses under standards established by the
American Institute of Certified Public Accountants. A material
weakness is a condition in which the design or operation of the
specific internal control structure elements does not reduce to a
relatively low level the risk that errors or irregularities in amounts
that would be material in relation to the financial statements being
audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions.
However, I noted no matters involving the internal control structure,
including procedures for safeguarding securities, that I consider to
be material weaknesses above as of December 31, 1999.
This report is intended solely for the information and use of
management and the Securities and Exchange Commission.
George E. Clark
Certified Public Accountant
