Gang, here's the Report:
Genesis Media Group Inc. Announces the Release of Its
1997 Year End Audited Financial Statement
PR Newswire - May 20, 1998 09:16
GNNX %TLS %ENT %FIN %ERN V%PRN P%PRN
CULVER CITY, Calif., May 20 /PRNewswire/ -- Don R. Logan, Chairman of the Board of Genesis
Media Group Inc. (OTC Bulletin Board: GNNX), announces today the release of the company's
1997 year end audited Financial Statement.
HOLLYWOOD SHOWCASE TELEVISION NETWORK, INC.
Balance Sheet
As At December 31, 1997
ASSETS
Current Assets
Cash in Banks $10,025
Accounts Receivable 13,814
Contract Receivables - Note 1 1,800,000
Inventory - Note 1 & 2 41,012,500
Prepaid Expenses 51,416
Total Current Assets $42,887,755
Property & Equipment
(Net of $15,733 Depn - Note 1 & 4) 162,034
Other Assets - Note 1 4,059,040
Total Assets $47,108,829
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $100,000
Accrued Expenses 17,588
Current Portion of Long Term Debt 820,777
Total Current Liabilities $938,365
Long Term Debt $1,463,698
Stockholders' Equity
Common Stock $687
Common Stock Authorized - 50,000,000
At $.0001 par value. Issued and
outstanding 6,869,500 shares
Paid in Capital 41,396,401
Retained Earnings December 31, 1997 3,310,678
Total Stockholders' Equity 44,706,766
Total Liabilities & Stockholders' Equity $47,108,829
The accompanying footnotes are an integral part of these financial statements. HOLLYWOOD
SHOWCASE TV NETWORK, INC. Statement of Operations For The Year Ended December 31,
1997
Sales $5,483,334
Other Income 804,983
Less: Cost of Sales 2,215,664
Gross Profit on Sales $4,072,653
Operating Expenses
Auto & Parking $3,124
Bank Charges 2,533
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 51,605
Repairs 13,790
Salaries 174,013
Samples 1,530
Stock Transfer 1,981
Supplies - Office 6,877
Taxes - Miscellaneous, 1,946
Taxes - Payroll 34,734
Telephone 12,461
Travel & Trade Prom 48,620
Total Operating Expenses 581,465
Profit before Depreciation $3,491,188
Less: Depreciation 15,733
Profit before Income Tax $3,475,455
Corporate Income Tax
-0-
Net Profit on Operations $3,475,455
The accompanying footnotes are an integral part of these financial statements.
HOLLYWOOD SHOWCASE TELEVISION NETWORK, INC.
Statement of Cash Flows
For The Year Ended December 31, 1997
Cash Flows from Operations:
Net Income $3,475,455
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation 15,733
3,491,188
Changes in Operating Assets & Liabilities
(Increase)in accounts receivable (13,814)
(Increase) in contract receivable (1,800,000)
(Increase) in inventory (41,012,500)
(Increase) in Prepaid expenses (51,416)
Decrease in Accounts Payable 100,000
Decrease in Accrued expenses 17,588
Decrease in current portion of Long Term Debt 820,777
(41,939,365)
Net Cash Provided by Operations 45,430,553
Cash Flows from Investments
Additional paid in capital (42,663,152)
Other Assets (4,059,040)
Purchase of Equipment & Furniture (162,034)
(46,884,226)
Financing Activities
Increase in Long Term Debt 1,463,698
Net Cash Increase 10,025
Cash on Hand - 1/1/1997
-0-
Cash on Hand - 12/31/1997 $10,025
The accompanying footnotes are an integral part of these financial statements.
HOLLYWOOD SHOWCASE TELEVISION NETWORK, INC.
Notes to Financial Statements
As At December 31, 1997
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The summary of significant accounting policies of Hollywood Showcase Television Network Inc. is
presented to assist in understanding the Company's financial statements. The financial statements and
notes are representations of the Company 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.
Note 1. Contract Receivable
In August 1997 Hollywood Showcase Television Network Inc. purchased in a tax free exchange a
company named Genesis Group Inc. One of the assets received is a contract for the sale of certain
films. The terms of the contract call for monthly payments beginning March 1, 1998 in the amount of
$100,000 per month for six months and $200,000 per month for the next 24 months totaling
$3,000,000. Beginning October 1, 1999 a licensing fee of $100,000 will be paid to the Company
monthly, until September 1, 2002, total of contract being $5,400,000. Analysis of the available
records of Genesis Group indicates that the cost of the 380 films purchased was $2,184,625. This
transaction will be treated as an installment sale, and will be reported for taxation on the same basis.
Note 2. Inventory
The inventory was acquired from Genesis Group Inc. and consists of Movie Films and 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
appraisal that identifies each item of inventory, and evaluates it. Inventory is carried at appraised value.
Note 3. Office Furniture & Equipment
Acquired in the same transaction was office furniture and equipment that cost the company $3,120.
Depreciation based on the remaining useful life of the items will be calculated on the straight line
method beginning September 1, 1997.
Note 4. Stockholders' Equity
The Company has 50,000,000 shares of Stock authorized at $.0001 par value, 6,869,500 were
issued. The assets of Genesis Group Inc. were acquired by trading 6,869,500 shares of Hollywood
Showcase for 100% of the stock of Genesis. The assets acquired are now shown on the Balance
Sheet.
Note 5. Depreciation
Depreciation has been provided on the same basis for tax and financial accounting purposes using the
straight line 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
Commitments
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.
/CONTACT: Lou Vector of Dutch Associates, 718-850-4175, for Genesis Media
Group/
(GNNX) |
