News for TNNS
GENESIS MEDIA GROUP, INC. REPORTS FIRST AND
Second Quarter Financial Statements
CULVER CITY, Calif., Sept. 10 /PRNewswire/ -- The following financial
statement is being released by Genesis Media Group, Inc. (OTC Bulletin
Board: GNNX):
Genesis Media Group, Inc.
Balance Sheet
March 31,1998
(Unaudited)
ASSETS
Current Assets
Cash on hand and in banks 15,845
Contract receivables (Note 2) 1,800,000
Inventory (Notes 1,3) 41,050,907
Prepaid expenses and misc. receivables 85,659
42,952,411
Property & Equipment (Net of $13,557 accumulated depreciation) (Notes 1,
4) 96,445 Other
Assets (Note 2,5,8) 3,740,505
$46,789,361
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $90,780
Accrued expenses 69,524
Current portion of long term debt (Note 6) 820,777
981,081 Long Term Debt (Note 6)
1,463,699
Total Liabilities 2,444,780
Stockholders' Equity
Common stock -- Par value $0.0001, Authorized 50,000,000
shares, issued and outstanding 19,846,000 shares 1,
986
Additional paid in capital (Note 3) 41,189,736
Retained earnings -- March 31, 1998 3,152,859
44,344,581
$46,789,361
Genesis Media Group, Inc.
Statement of Income and Retained Earnings
For the Three Months Ended March 31, 1998
(Unaudited)
Gross Sales & Other Income (Net of cost of sales)
$145,092 Operating Expenses
Amortization of copyrights 692
Automobile & parking 2,901
Bank charges 339
Depreciation (Note 1) 4,586
Insurance 2,677
Legal & accounting 7,392
Miscellaneous 3,394
Outside services 3,570
Postage 373
Rent & storage (Note 7) 49,219
Salaries & wages 17,868
Taxes & licenses 3,945
Telephone 4,402
Travel 386
101,744
Net Income before Taxes 43,
348 Provision for Taxes
800
Net Income 42,548
Net Income per common share (Note 9) $0.004
Retained Earnings -- December 31, 1997 3,110,
311
Retained Earnings -- March 31, 1998 $3,152,859
Genesis Media Group, Inc.
Notes to Unaudited Financial Statements
March 31, 1998
Note 1 -- Summary of Significant Accounting Policies
The summary of significant accounting policies of Genesis Media Group,
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 of 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:
Production equipment 5 - 7 years
Office equipment, furniture & fixtures 5 - 10 years
Leasehold improvements 3 - 10 years
Copyrights and Amortization
Copyrights were purchased and are subject to the 15 years amortization
rules. For purpose of these financial statements, copyrights are
amortized on the straight line basis over 15 years.
Note 2 - Contracts Receivable
In August, 1997 Genesis Media Group, Inc. (formerly 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 31, 1998 in the amount of $1,000,000
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 3 - Inventories
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. Also included in inventory
are the costs incurred to date in developing the production of the
"Diary of
James Dean".
Inventories consist of the following:
Music and films $41,000,000
Products 12,400
Productions in process 38,507
$41,050,907
Note 4 - Property and Equipment Property and equipment consists of
the following at cost:
Computer equipment $26,946
Office furniture 27,056
Office equipment 35,354
Production equipment 1,000
Leasehold improvements 19,646
110,002
Less accumulated deprec. (13,557)
$96,445
Note 5 - Other Assets Other assets consists of the following:
Deposits $13,728
Copyrights net of accumulated
amortization of $692 40,808
Loans to TranStar 35,331
Production costs 50,638
Long term portion of
contract receivable 3,600,000
$3,740 505
Note 6 - Long Term Debt Long turn debt consists of the following:
Contract payable $2,284,475
Less current portion (820,777)
$1,463,698
Note 7 - Commitments and Contingencies The Company is committed under
a lease dated October 1, 1997 and expiring September 30, 1998, for a
minimum annual rental (exclusive of real estate taxes, maintenance,
etc.) as follows:
Year-ending December 31 1998 $52,776
Said lease is payable monthly (Cash = $5,864 and Services = $2,932)
Note 8 - Investment in TranStar Communications, Inc. The Company has
an investment of 10% in the common stock of TranStar Communications,
Inc. However, said investment has not been included in this financial
statement as a separate item. The investment in TranStar has been
combined with loans to TranStar ($35,331).
Note 9 - Earnings per Common Share Earnings per share of common stock
has been computed based on a weighted average of 10,547,926 shares.
SOURCE Genesis Media Group, Inc.
-0- 09/10/98 /CONTACT: Carl J. Conte of
Genesis Media Group, Inc., 310-665-0221/
(GNNX)
CO: Genesis Media Group, Inc. ST: California IN: ENT SU: ERN
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