...Part V...I can't find the end...
Genesis Media Group, Inc. (OTC Bulletin Board: GNNX) Announces Revenues and Earnings for
the Year Ended December 31, 1997
PR Newswire - February 24, 1998 08:57 GNNX
------------------------------------------------------------------------
Shares Outstanding @ 12/31/97: 10,990,000
Net Income @ 12/31/97: 3,475,455
The Earnings Per Share: $ .316
LAS VEGAS, Feb. 24 /PRNewswire/ -- Genesis Media Group, Inc.
(OTC Bulletin Board: GNNX) reported the following today:
Hollywood Showcase T.V. Network, Inc.
Genesis Media Group, Inc.
Consolidated Balance Sheet
December 31, 1997
(Unaudited)
ASSETS
Current Assets
Cash in banks $ 10,025
Accounts receivable (Note A) 13,814
Contract receivables (Note B) 1,800,000
Inventory (Notes A,C) 41,012,500
Prepaid expenses and misc. receivables 51,416
42,887,755 Property & Equipment (Net of $15,733 accumulated depreciation) (Notes A, D) 162,034
Other Assets (Note E) 4,059,040
$47,108,829 Liabilities & Stockholders' Equity
Current Liabilities
Accounts payable $100,000
Accrued expenses 17,588
Current portion of long term debt (Note F) 820,777
938,365
Long Term Debt (Note F) 1,463,698
Total liabilities 2,402,063
Stockholders' Equity
Common stock - Par value $0.0001,
Authorized 50,000,000 shares, issued and
outstanding 10,990,000 shares 1,099
Additional paid in capital (Note C) 41,394,989
Retained earnings - December 31, 1997 3,310,678
44,706,766
$47,105,829
10,990,000 issued and outstanding shares
Net income 12/31/97 3,475,455
Earnings per share $ .316
See accompanying footnotes
Hollywood Showcase T.V. Network, Inc.
Genesis Media Group, Inc.
Consolidated Statement of Income and Retained Earnings
For the Year Ended December 31, 1997
(Unaudited)
Sales $ 5,483,334
Cost of Sales 2,215,664
Gross Profit 3,267,670
Other Income 804,983
4,072,653
Operating Expenses
Automobile & parking 3,124
Bank charges 2,533
Depreciation (Note A) 15,733
Equipment rental 9,360
Insurance 1,173
Miscellaneous 5,895
Moving expense 4,433
Outside services 166,791
Professional fees 39,385
Printing 1,214
Rent & Storage (Note G) 51,605
Repairs 13,790
Salaries 174,013
Samples 1,530
Stock Transfer & Delivery 1,981
Supplies - computer & office 6,877
Taxes - miscellaneous 1,146
Taxes - payroll 34,734
Telephone 12,461
Travel & entertainment 48,620
596,398
Net Income before Taxes 3,476,255
Provision for Taxes 800
Net Income $3,475,455
Retained Earnings - December 31, 1996 (118,000)
Less Treasury Stock (46,777)
Retained Earnings - December 31, 1997 $3,310,678
See accompanying footnotes
Hollywood Showcase T.V. Network, Inc.
Genesis Media Group, Inc.
Consolidated Statement of Income and Retained Earnings
For the Year Ended December 31, 1997
(Unaudited)
Operating Activities:
Net income $ 3,475,455
Adjustment to reconcile net income to
net cash provided by operating activities:
Depreciation 15,733
3,491,188
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable (13,814)
(Increase) decrease in contract receivable (1,800,000)
(Increase) decrease in inventory (41,012,500)
(Increase) decrease in prepaid expenses and
miscellaneous receivables (51,416)
Increase (decrease) in accounts payable 100,000
Increase (decrease) in accrued expenses 17,588
Increase (decrease) in current portion
of long term debt 820,777
(41,939,365)
Net cash provided by operating activities 45,430,553
Investing Activities:
Additional paid in capital (42,616,375)
Treasury stock (46,777)
Other Assets (4,059,040)
Purchase of equipment, furniture and leasehold
improvements (Net of $15,733 accumulated
depreciation) (162,034)
(46,884,226)
Financing Activities:
Increase (decrease) in long term debt 1,463,698
Increase (decrease) in cash 10,025
Cash - Beginning of Period 0
Cash - End of Period $ 10,025
See accompanying footnotes
Hollywood Showcase T.V. Network, Inc.
Genesis Media Group, Inc.
Notes to Consolidated Financial Statements
December 31, 1997
Note A - Summary of Significant Accounting Policies
The summary of significant accounting policies of Hollywood Showcase T.V. Network, Inc. is presented to assist in
understanding the Company's financial statements. The financial statements and notes are representations of the Company's
management. Management is responsible for their integrity. These accounting policies conform to generally accepted accounting
principles and have been consistently applied in the preparation of the financial statements.
Line of Business
The Company is primarily engaged in media and advertising.
Accounts Receivable
The Company provides allowances against accounts receivable to maintain sufficient reserves to cover anticipated losses.
Inventory
Inventory is stated at the lower cost or market (with the exception of the
inventory acquired from Genesis Group, Inc. which has been stated at its appraised value), cost generally being determined on
a first-in, first-out basis.
Equipment and Depreciation
Depreciation has been provided on the same basis for tax and financial
accounting purposes using the straight-line, accelerated and declining balance methods. The estimated useful lives of the assets
are as follows:
Shop equipment 5 - 7 years
Office furniture & fixtures 5 - 10 years
Leasehold improvements 3 - 10 years
Note B - Contracts Receivable
In august, 1997 Hollywood Showcase T.V. Network, Inc. purchased in a tax free exchange a company named Genesis
Group, Inc. One of the assets received is a contract for the sales of certain films. The terms of the contract call for monthly
payments which commenced March 1, 1998 in the amount of $100,000 per month for six months and $200,000 per month for
the next 24 months. The total of the contract being $5,400,000. Income tax on this transaction will be reported on the
installment basis. Beginning October 1, 1999, a licensing fee of $100,000 will be paid monthly to the Company until September
1, 2002.
Note C - Inventory (Continued)
The inventory was acquired from Genesis Group, Inc. and consists of movie films, music tapes and CD-ROM interactive tapes.
With the inventory comes the rights to reconfigure, compile, manufacture, distribute, license, sell and lease. Each item is one of
a kind. The Company has an independent appraisal that identifies each item of inventory, and evaluates it. Inventory is carried
at appraised value.
Note D - Property and Equipment
Property and equipment consists of the following at cost:
Shop equipment $127,140
Office furniture 28,006
Leasehold improvements 22,621
177,767
Less accumulated deprec. (15,733)
$162,034
Note E - Other Assets
Other assets consists of the following:
Deposits $ 36,706
Copyrights 41,500
Production costs 380,834
Long term portion of contract receivable 3,600,000
$4,059,040
Note F - Long Term Debt
Long term debt consists of the following:
Contract payable $2,284,475
Less current portion (820,777)
$1,463,698
Note G - Commitments and Contingencies
The Company is committed under a lease dated October 1, 1997, for a
minimum annual rental (exclusive of real estate taxes, maintenance, etc.) as follows:
Year-ending December 31 1998 $97,772
1999 19,200
2000 16,000
SOURCE Genesis Media Group, Inc.
/Web site: genesis-ent.com
/Web site: genx.com
(GNNX)
Genesis Group Inc. Announces Name Change and Symbol Change
PR Newswire - February 20, 1998 10:57 GNNX HSTV
CULVER CITY, Calif., Feb. 20 /PRNewswire/ -- Genesis Group Inc./Hollywood Television Network Inc. (HSTV) would
like to announce the execution of a name and trading symbol change.
New Corporation name: GENESIS MEDIA GROUP, INC.
New Cusip#: 371934-10-0
New Trading Symbol: (OTC Bulletin Board: GNNX)
Genesis Media Group, Inc. would also like to announce the addition of two new web sites:
For Corporate information, news and updates: genesisent.com
For Corporate Technical Information: gnnx.com
SOURCE Genesis Group Inc.
/CONTACT: Carl Conti, 310-665-0221
/Web site: genesisent.com
(GNNX)
In LAF020, Genesis Group Inc. Announces Name Change and Symbol Change, we are advised by a representative of the
company that the headline should read, "Genesis Group Inc./Hollywood Showcase Television Network Inc. (HSTV)
Announces a Name Change and a Trading Symbol Change," rather than "Genesis Group Inc. Announces Name Change and
Symbol Change." Also, the first line should read, "Genesis Group Inc./Hollywood Showcase Television Network (HSTV)"
rather than "Genesis Group Inc./Hollywood Television Network Inc. (HSTV)" as originally issued.
/PRNewswire -- Feb. 20/
/Web site: genesisent.com
(GNNX HSTV) |
