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A. DIGITAL PRODUCTION Genesis has a state-of-the-art switchable component Digital Editing and Digital Multi-Camera production studio. The studio features 12-Bit digital cameras, a 4:2:2 digital component switcher, digital component beta-cam recorders, and D2 composite digital recorders. Our insert air- conditioned stage features complete digital multi-camera equipment. Genesis capabilities include complete digital production and post- production, as well as analog services. This studio enables Genesis to produce film, video, and music projects.
B. DEALER DISTRIBUTOR Genesis is a dealer-distributor for Thomson Broadcast Systems. Thomson is a worldwide organization with subsidiaries in Asia, Europe and the U.S. as well as distributors and agents around the world. The company headquarters are located near Paris with two production sites in Brittany (France). Thomson addresses the digital image chain from end to end: image capture, processing, compression, transmission, and broadcasting. This is an exciting time, not only because of Thomson's strategic commitment to digital technologies, but new applications such as digital television, MPEG2 compression and multi-service fiber networks. There is a unique synergy that now exists across Thomson's product and systems divisions. With the worldwide resources of Thomson multi-media, they are the 4th largest consumer electronics group in the world. From creating the next generation of broadcast equipment, to implementing today's most advanced digital solutions, Thomson Broadcast System shares two essential values: passionate commitment to what they do, and a vision of the future that is resolutely digital.
C. MUSIC Genesis has a music library which includes such artists as, Frank Sinatra, Ray Charles, Johnny Cash, Willie Nelson, Chuck Berry, Rod Stewart, and many more. This library can be used to re-score music sound tracts for major motion pictures and television productions. The Company is in the process of releasing a Frank Sinatra 4 album set.
D. THE AUTO PLUS / DEALER DIRECT PROGRAM The Auto Plus / Dealer Direct Program is a second chance credit financing program, With Morton Downey Jr. as our national spokesperson. Genesis is organizing a national television and radio campaign that will generate 60,000 qualified auto buyer leads per month, distributed via the Web. These leads will match the desires of the buyer with the inventory of Dealers. A buyer will place an inquiry through our system. The buyer, by making this one phone call, has now made multi-dealers aware of his or her needs, thus offering the buyer a selection and price favorable to his or her needs. Multi-dealers review the buyer's specific requests, and match them with their inventory. Upon purchase, buyer will receive an unsecured Mastercard with a 500 dollar credit limit. The program provides numerous benefits to the participating dealers. The Dealers are able to receive thousands of qualified leads that match their inventory, reducing the cost of buying leads in bulk. The Dealer gets the use of the "Buy-a-Car, Get-a-Mastercard" endorsement, in conjunction with major finance companies that have the funds available for impaired credit buyers. Dealers also receive national television and radio advertising, up to 600 commercials per month through the use of co-op advertising proceeds. There is also ability for other national sponsors to benefit such as oil and tire companies.
E. TELECOMMUNICATIONS MARKETING. Genesis provides wholesale long distance service to different countries such as China and India, and is in the process of developing its own fiber network to the country of Mexico. These and other contracts will enable Genesis to proceed with its current plan of operation.
F. JAMES DEAN PROJECT
Genesis is in the process of producing a feature length documentary on the life of James Dean. The project is designed to be distributed on home video, as a commercially sponsored TV program, as a stand-alone special for Pay-TV, or for release on 35mm as an exclusive engagement in highly selected theaters around the world. The running time for the project is estimated to be 93 minutes, so that it will have the flexibility of adapting to any film or video format. The working title as of this writing is: "The Diary of James Dean." The production will especially appeal to the estimated 165 million Dean fans worldwide (over 20 million domestically), spanning more than four decades and three generations. The production style of the project will combine elements of a documentary and a drama, weaving a story with photographs, film footage, exclusive interviews and a powerful dramatic portrayal of James Dean. Much of the production takes place on location in James Dean's hometown of Fairmount Indiana, on the family farm, and other locations where he worked, lived and developed his talent. An original soundtrack used as a backdrop will be embellished by selected well known songs which help tell the story of the world's greatest screen legend. Amazing and realistic dramatic portrayals will bring to life the "little-known" facts of the real character and personality of James Dean.
ITEM 2 FINANCIAL INFORMATION The Registrant's financial data presented below has been derived from the Financial Statements of the Company, including the notes thereto, appearing elsewhere herein. GENESIS MEDIA GROUP, INC.
Year Ended December 31
1997 1996 1995 1994 Summary of Operations Net Revenues $5,288,317 $2,575.73 Cost of Sales 2,215,664 Gross Profit 4,072,653 Operating Expenses 581,465 90,090.31 Net Profit $3,475,455 ($87,514.58) Summary Balance Sheet Data Total Assets $47,108,829 $335,647.04 $0 $0 Total Liabilities 2,402,063 0 $4,996 $4,996 Shareholders' Equity $44,706,766 $335,647.04 ($4,996) ($4,996) Note: The financial information for years prior to 1997 are for Hollywood Showcase Television Network, Inc.
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