SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549

                            Form 10-K


      ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
              SECURITIES ACT OF 1934 (Fee Required)


For The Fiscal Year                Commission File #2-80891-NY
Ended June 30, 1997

                     MODERN TECHNOLOGY CORP.
                                                                  
     (Exact Name of Registrant as Specified in its Charter)


Nevada                                       11-2620387
                                                                  
(State or other jurisdiction of              (I.R.S. Employer
Incorporation or Organization)               Identification Number)


  461 Beach 124 Street. P.O.B. 7. Belle Harbor, New York 11694
                                                                  
     (Address of Principal Executive Office)           (Zip Code)


                          (718)474-6568
                                                                  
      (Registrant's Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:  None

Securities registered pursuant to Section 12(g) of the Act:  None

Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities and Exchange Act of 1934 during the preceding twelve
months and (2) has been subject to such filing requirements for the
past ninety days.

Yes     X                                              No         

Indicate by check mark if disclosure of delinquent filers pursuant
to Item 405 or Regulation S-K is not contained herein, and will not
be contained, to the best of Registrant's knowledge, in definitive
proxy or information statements incorporated by reference in Part
III of this Form 10-K or any amendment to this Form 10-K.    X   

As of September 18, 1997, there was no aggregate market value of
the voting stock held by non-affiliates of the Registrant due to
the fact that there was no trading market in the shares of the
Registrant.

The Number of Shares Outstanding of Common Stock $.0001 par value
at September 19, 1997 was 20,150,000.

                             PART 1

1.  Business

     The Registrant is engaged in aiding prospective clients in
obtaining financing and in providing managerial services to client
companies.  During the year ended June 30, 1997, the Registrant was
involved in providing managerial services to Davin Enterprises Inc.
("Davin") which it also had aided in obtaining financing.  The
Registrant received managerial fees of $9,600 from Davin during the
year ended June 30, 1997.

     Presently, the Registrant is seeking out joint venture
candidates and companies for which it can aid in providing
financing and managerial services although no assurances can be
given that the Registrant will be successful in gaining new clients
in the near future.

     During December 1996 the Registrant purchased 403,000 shares
of Coral Development Corp. for $30,300.  The Registrant has
registered these shares with the Securities and Exchange Commission
with the intention to distribute those shares to the Registrant's
shareholders in the form of a dividend.  This distribution can only
be made after a merger agreement with a private company is signed
and at least 80% of the Registrant's shareholders approve such
merger.  At this time, Coral Development Corp. is seeking a merger
partner.  No assurance can be given that a merger agreement will be
signed and that at least 80% of the shareholders of the Registrant
will approve such merger agreement.

     During the year ended June 30, 1996, the Registrant purchased
25,000 shares of Delta Three Inc. for $25,000-.  Delta Three Inc.
is a telecommunications provider, using Internet technology for
voice transmission.  During the quarter ended September 30, 1997
the Registrant sold its 25,000 shares of Delta Three Inc. for
$50,000.

     During the fiscal year ended June 30, 1997, the Registrant had
net income of $11,925.  Its revenue for the year ended June 30,
1997 was derived from management income amounting to $9,600,
interest income of $33,445 and a gain on securities sales of
$29,940.  Total revenues for the year ended June 30, 1997 amounted
to $72,985.

Item 2.  Properties.

     As of June 30, 1997, the Registrant owned no property.  The
Registrant has its offices in the home of its officers, using
approximately 200 square feet for which it pays no rent.

Item 3.  Legal Proceedings.

     None


Item 4.  Submission of Matters to a Vote of Security Holders.

     None

                             PART II

Item 5.   Market for Registrant's Common Equity and Related
          Stockholders Matters.

     During the past three fiscal years there was no market for the
shares of the Registrant.

Number of Shareholders - 370 shareholders of record of 9/15/97.

Dividends - None paid.

Item 6.   Selected Financial Data

                           for the Year ended June 30,
                   1997     1996     1995      1994      1993 

Total Revenues    $72,985  $40,449  $40,708  $31,278   $36,803
Operating Income
 (Loss)             6,388   (2,709) (14,375) (10,694)   (2,255)
Net Income (Loss)  11,925   (3,720) (14,375) (10,694)   (2,255)
Net Income (Loss)
 per share           NIL      NIL      NIL      NIL       NIL
Total Assets      731,238  718,443  721,014  735,389   747,283
Long Term Debt        -0-      -0-      -0-      -0-       -0-
Dividends             -0-      -0-      -0-      -0-       -0-

Item 7.   Management's Discussion and Analysis of Results of
          Operations.

     The Registrant had net income after taxes of $11,925 for the
year ended June 30, 1997.  A net loss for the year ended June 30,
1996 amounted to $3,720.

     Fiscal year 1997 revenues and income was influenced by
interest income, management income and gains from the sale of
securities.  During fiscal year 1997, the revenues amounted to
$72,985 as compared with fiscal year 1996 revenes of $40,449. 
Operating expenses rose in fiscal year 1997 as compared with the
comparative fiscal year 1996 figure.  The net income figure for
fiscal year 1997 was principally due to the sale of securities (TTR
Inc. shares).

     The Registrant has been receiving a monthly management fee of
$800 from Davin for the fiscal year ended June 30, 1997.  The
Registrant provides administrative, clerical, bookkeeping and other
services to Davin.  At June 30, 1996, the Registrant owned 501,000
restricted shares of Davin, at a cost of $7,950, representing 25.8%
of the outstanding shares of Davin.

     During December 1996 the Retistrant purchased 403,000 shares
of Coral Development Corp. for $30,300.  The Registrant has
registered these shares with the Securities and Exchange Commission
with the intention to distribute those shares to the Registrant's
shareholders in the form of a dividend.  This distribution can only
be made after a merger agreement with a private company is signed
and at least 80% of the Registrant's shareholders approve such
merger.  At this time Coral Development Corp. is seeking a merger
partner.  No assurance can be given that a merger agreement will be
signed and that at least 80% of the shareholders of the Registrant
will approve such merger agreement.

     During fiscal year 1995, the Registrant purchased an
investment in TTR Inc., amounting to a 10% promissory note in the
amount of $25,000 with warrants for 4,000 shares exercisable at
$.01 per share at the time of a TTR initial public offering.  TTR
Inc. was incorporated for the purpose of designing, developing and
marketing computer software products.  During the year ended June
30, 1996 the Registrant purchased 25,000 shares of Delta Three Inc.
for $25,000.  Delta Three Inc. is a telecommunications provider
using Internet technology for voice transmission.  The 10%
promissory note plus interest has been repaid to the Registrant. 
The Registrant also exercised its warrants and realized a gain of
$29,940.

     During the year ended June 30, 1997 the Registrant recognized
a complete loss on its investment and loan to Soft Sail Wind Power
Inc. (Soft Sail).  At the present time the Registrant does not
believe Soft Sail will be able to repay its debt to the Company and
has therefore considered its debt and equity investment in Soft
Sail to be worthless.  The loss on the loan was $11,400 and the
loss in the current year on its equity investment was $16,005.

     At June 30, 1997 the Registrant's total assets amounted to
$731,238 and as compared with $718,443 for total assets at June 30,
1996.  At June 30, 1997, stockholders' equity amounted to $728,019,
as compared with $716,094 at June 30, 1996.

Item 8.   Financial Statements.

     Attached.

Item 9.   Changes In and Disagreement With Accountants on
          Accounting and Financial Disclosure.

     None.
                            PART III

Item 10.  Directors and Executive Officers.

     The executive officers and directors of the Registrant are as
follows:

Name                Age  Title                    Term Expires

Arthur Seidenfeld   46   President and            Next Annual
                         Director                 Meeting
Anne Seidenfeld     84   Treasurer, Secretary     Next Annual
                         and Director             Meeting
Gerald Kaufman      56   Director                 Next Annual
                                                  Meeting

     Each of the above named individuals has served the Registrant
in the capacity indicated since its formation on July 27, 1982
(with the exception of Anne Seidenfeld who became a director of the
Registrant on March 31, 1989 and treasurer on December 17, 1989 and
Gerald Kaufman who became a director in 1990.

     Arthur Seidenfeld, has been president and a director of the
Registrant since its formation.  Mr. Seidenfeld was awarded a B.S.
Degree in Accounting from New York University in 1972 and a M.B.A.
Degree in Finance in 1978 from Pace University.

     He is also president and director of Daine Industries, Inc.,
a publicly traded company which through its wholly owned
subsidiary, Lite King Corp, is engaged in the manufacture of wiring
devices.  He is also president and director of Davin Enterprises,
Inc., a publicly traded company that went public in Sept. 1987,
which is seeking out appropriate business opportunities and which
also has an equity position in Target Vision, Inc., a privately
owned company in the computerized communication field.  From July
1994 until April 1997, he was also treasurer-secretary of Soft Sail
Wind Power Inc., a newly established company engaged in wind energy
research and development activities.  Since December 1996, he has
been president and director of Coral Development Corp., a public
company whose intention is to merge with an operating company.

     Anne Seidenfeld, Treasurer, Secretary and Director, received
her diploma from Washington Irving High School, New York City, in
1931.  Mrs. Seidenfeld is the Treasurer, Secretary and Director of
Daine Industries, Inc., Davin Enterprises, Inc and Coral
Development Corp.

     Gerald Kaufman, Director, has been a practicing attorney for
over twenty five years.  He has served as a director of the
Registrant, along with being a director of Daine Industries Inc.
and Davin Enterprises, Inc. since November 1990.  He has also been
a director of American Mayflower Life Insurance Co. since 1973.

     Arthur Seidenfeld is the son of Anne Seidenfeld.

Item 11.  Management-Remuneration and Transactions.

     During the fiscal year ended June 30, 1997, management
salaries were as follows:

     Anne Seidenfeld - Treasurer-Secretary $7,200

     The Company's president, Arthur Seidenfeld, did not receive a
salary for the year ended June 30, 1997.  Anne Seidenfeld, the
Company's treasurer and secretary, pursuant to an oral agreement
with the Company earned $7,200 as an annual salary effective
through June 30, 1997.
                             PART IV

Item 12.  Security Ownership of Certain Beneficial Owners and
          Management.

     a. The following are known to Registrant to be beneficial
owners of 5% or more of the Registrant's common stock.

Title of Class
Common Stock

Name of Beneficial Owner      Amount & Nature of       Percentage
                              Beneficial Ownership      of Class

Arthur Seidenfeld
461 Beach 124 Street
Belle Harbor, New York              9,654,820             47.9%

Anne Seidenfeld
461 Beach 124 Street
Belle Harbor, New York              2,426,500             12.0%

All Officers and
Directors as a Group (3)           12,081,320             59.9%
     b. The shares owned by management are as follows:

Common Stock.

Name of Beneficial Owner      Amount & Nature of       Percentage
                              Beneficial Ownership      of Class

Arthur Seidenfeld                   9,654,820             47.9%
Anne Seidenfeld                     2,426,500             12.0%

Item 13.  Certain Relationships and Related Transactions:

     For the year ended June 30, 1997, the Registrant received
management fees from Davin Enterprises, Inc. amounting to $9,600. 
Arthur Seidenfeld, President and a director of the Registrant owns
29.4% of the outstanding shares of Davin Enterprises, Inc.  Anne
Seidenfeld, Treasurer-Secretary and a director of the Registrant
owns 0.2% of the outstanding shares of Davin Enterprises, Inc.
                     MODERN TECHNOLOGY CORP.
           INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
           FILED WITH THE ANNUAL REPORT OF THE COMPANY
                          ON FORM 10-K

ITEM 14 - EXHIBITS

     Financial Statements and Schedules and Reports on Form 8-K.

ACCOUNTANT'S REPORT
BALANCE SHEET AS OF JUNE 30, 1997 AND JUNE 30, 1996
STATEMENT OF STOCKHOLDERS' EQUITY FOR THE PERIOD JULY 1, 1994 TO
  JUNE 30, 1997
STATEMENT OF OPERATIONS FOR THE YEARS ENDED JUNE 30, 1995, 1996 AND
  1997
STATEMENT OF CASH FLOWS FOR THE YEARS ENDED JUNE 30, 1995, 1996 AND
  1997
NOTES TO FINANCIAL STATEMENTS

Other schedules not submitted are omitted, because the information
is included elsewhere in the financial statements or the notes
thereto, or the conditions requiring the filing of these schedules
are not applicable.

Supplemental information to be furnished with reports filed
pursuant to Section 15(d) of the Securities Act of 1934 by
Registrant which have not registered securities pursuant to Section
12 of the Securities Act of 1934.

a)  No annual report or proxy material has been sent to security
holders.  When such report or proxy materials are furnished to
securities holders subsequent to the filing of this report, copies
shall be furnished to the Commission when sent to securities
holders.















                    MODERN TECHNNOLOGY CORP.

                      FINANCIAL STATEMENTS

                     JUNE 30, 1997 AND 1996









                            I N D E X





                                                            Page


REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS            1


CONSOLIDATED BALANCE SHEETS                                   2


CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY                3


CONSOLIDATED STATEMENTS OF OPERATIONS                         4


CONSOLIDATED STATEMENTS OF CASH FLOWS                         5


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS               6-10










       REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS




Board of Directors and Stockholders
MODERN TECHNOLOGY CORP.
Belle Harbor, New York  11694


We have audited the accompanying consolidated balance sheets of
MODERN TECHNOLOGY CORP. as at June 30, 1997 and 1996 and the
related consolidated statements of operations and stockholders'
equity and cash flows for each of the three years in the period
ended June 30, 1997.  These financial statements are the
responsibility of the company's management.  Our responsibility is
to express an opinion on these financial statements based upon our
audits.

We conducted our audits in accordance with generally accepted
auditing standards.  Those standards require that we 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.  An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statements presentation.  We believe that our audits
provides a reasonable basis for our opinion.

In our opinion, the consolidated financial statements enumerated
above present fairly, in all material respects, the consolidated
financial position of MODERN TECHNOLOGY CORP. at June 30, 1997 and
1996, and the consolidated results of its operations and cash flows
for the three years in the period ended June 30, 1997, in
conformity with generally accepted accounting principles.




                                   GREENBERG & COMPANY LLC

Springfield, New Jersey
August 15, 1997


                                                    Page 1 of 10
                          MODERN TECHNOLOGY CORP.
                        CONSOLIDATED BALANCE SHEETS




                                                            June 30,     
                                                        1997       1996  


                                A S S E T S


CURRENT ASSETS
  Cash and Cash Equivalents                           $647,886   $616,268

EQUIPMENT - At Cost                                      9,939      9,939
  Less:  Accumulated Depreciation                        9,939      9,939
                                                           -0-        -0-

OTHER ASSETS
  Investments, At Cost                                  49,770     74,770
  Investments, At Equity                                   -0-     16,005
  Loan Receivable - Affiliate                              -0-     11,400
  Deferred Tax Asset                                     7,375        -0-
  Deferred Registration Costs                           25,907        -0-
  Other Assets                                             300        -0-
                                                        83,352    102,175


TOTAL ASSETS                                          $731,238   $718,443



  L I A B I L I T I E S   A N D   S T O C K H O L D E R S'   E Q U I T Y


CURRENT LIABILITIES
  Accrued Expenses and Taxes                          $  3,219   $  2,349

STOCKHOLDERS' EQUITY
  Common Stock Par Value $.0001
    Authorized:  150,000,000 Shares
    Issued and Outstanding:  20,150,000
      Shares                                             2,015      2,015
  Paid-In Capital                                      495,161    495,161
  Retained Earnings                                    230,843    218,918
                                                       728,019    716,094


TOTAL LIABILITIES AND STOCKHOLDERS'
  EQUITY                                              $731,238   $718,443


The accompanying notes are an integral part of these financial statements.


                                                                 Page 2 of 10
                          MODERN TECHNOLOGY CORP.
              CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
               FOR THE PERIOD JULY 1, 1994 TO JUNE 30, 1997



                                                                   Total
                                    Par               Retained     Stock-
                        # of       Value   Paid-In    Earnings   holders'
                       Shares     $.0001   Capital    (Deficit)   Equity


BALANCES AT
JULY 1, 1994         20,150,000   $2,015   $495,161   $237,013   $734,189

Net Income (Loss)
for the Year Ended
June 30, 1995                                          (14,375)   (14,375)

BALANCES AT
JUNE 30, 1995        20,150,000    2,015    495,161    222,638    719,814

Net Income (Loss)
for the Year Ended
June 30, 1996                                           (3,720)    (3,720)

BALANCES AT
JUNE 30, 1996        20,150,000    2,015    495,161    218,918    716,094

Net Income (Loss)
for the Year Ended
June 30, 1997                                           11,925     11,925


BALANCES AT
JUNE 30, 1997        20,150,000   $2,015   $495,161   $230,843   $728,019


















The accompanying notes are an integral part of these financial statements.


                                                                 Page 3 of 10
                          MODERN TECHNOLOGY CORP.
                   CONSOLIDATED STATEMENTS OF OPERATIONS



                                          For The Years Ended June 30,   
                                       1997          1996          1995  


REVENUES

  Interest Income                    $33,445       $30,849       $ 31,108

  Management Income                    9,600         9,600          9,600

  Gain on Securities Sales            29,940           -0-            -0-

                                      72,985        40,449         40,708

EXPENSES

  Officers' Salaries                   7,200         7,200          8,200

  General and Administrative
    Expenses                          31,992        26,472         31,925

  (Loss) on Worthlessness of
   Affiliate                         (27,405)          -0-            -0-

  Equity in (Loss) of
   Affiliated Company                    -0-        (9,486)       (14,958)
                                      66,597        43,158         55,083

INCOME (LOSS) BEFORE TAXES             6,388        (2,709)       (14,375)

OTHER EXPENSES & TAXES

  Income Tax (Expense) Benefit         5,537        (1,011)           -0-


NET INCOME (LOSS)                    $11,925       $(3,720)      $(14,375)
  
INCOME PER SHARE                        NIL           NIL           NIL  

NUMBER OF WEIGHTED AVERAGE
  SHARES OUTSTANDING               20,150,000    20,150,000    20,150,000








The accompanying notes are an integral part of these financial statements.


                                                                 Page 4 of 10
                          MODERN TECHNOLOGY CORP.
                   CONSOLIDATED STATEMENTS OF CASH FLOWS



                                           For The Years Ended June 30, 
                                             1997       1996       1995 


CASH FLOWS FROM OPERATING ACTIVITIES:
 Net Income (Loss)                         $ 11,925   $ (3,720)  $(14,375)
 Adjustments to Reconcile Net Income
  to Net Cash Provided By (Used In)
  Operating Activities:
   Changes in Assets and Liabilities:
    Decrease (Increase) In Deferred Taxes    (7,375)       -0-        -0-
    Decrease (Increase) in Deferred
     Registration Costs                     (25,907)       -0-        -0-
    Decrease (Increase) in Other Assets        (300)       -0-        -0-
    Increase (Decrease) Accrued
      Expenses and Taxes                        870      1,149        -0-

 Net Cash Provided By (Used In)
  Operating Activities                      (20,787)    (2,571)   (14,375)

CASH FLOWS FROM INVESTING ACTIVITIES:
 Write Down of Investments and Loan          27,405      9,486     14,958
 Purchase (Sale) of Securities               25,000    (25,000)   (65,449)
 Loan - Affiliate                               -0-    (11,400)       -0-
  Net Cash (Used In) Provided By
   Investing Activities                      52,405    (26,914)   (50,491)

Net Increase (Decrease) in Cash 
 and Cash Equivalents                        31,618    (29,485)   (64,866)

Cash and Cash Equivalents,
 Beginning of Year                          616,268    645,753    710,619


CASH AND CASH EQUIVALENTS,
 END OF YEAR                               $647,886   $616,268   $645,753



Supplemental Disclosures Of Cash Flow Information

 Cash Paid During The Period For:
  Taxes                                    $    623   $    -0-   $    -0-
  Interest                                 $    -0-   $    -0-   $    -0-





The accompanying notes are an integral part of these financial statements.


                                                                 Page 5 of 10
                        MODERN TECHNOLOGY CORP.
            NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
              FOR THE YEARS ENDED JUNE 30, 1997 AND 1996

NOTE 1:   ORGANIZATION AND NATURE OF OPERATIONS

          Modern Technology Corp. (Modern) is a Nevada corporation. 
          Modern is engaged in aiding prospective clients in obtaining
          financing and in providing managerial services to client
          companies.  Modern's office is located in New York.  Modern's
          clients are located throughout the world.

NOTE 2:   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

          ACCOUNTING POLICIES

          Modern Technology Corp.'s accounting policies conform to
          generally accepted accounting principles.  Significant
          policies followed are described below.

          BASIS OF PRESENTATION

          The accompanying consolidated financial statements include the
          accounts of its wholly owned subsidiary Coral Development Corp
          (Coral).  All significant intercompany balances and
          transactions have been eliminated in consolidation.  Modern
          invested $30,300 in Coral during the quarter ended December
          31, 1996.

          RECLASSIFICATIONS

          Certain items from prior periods within the financial
          statements have been reclassified to conform to current period
          classifications.

          CASH AND CASH EQUIVALENTS

          Cash equivalents consist of highly liquid, short-term
          investments with maturities of 90 days or less.  The carrying
          amount reported in the accompanying balance sheets
          approximates fair value.

          ESTIMATES IN FINANCIAL STATEMENTS

          The preparation of financial statements in conformity with
          generally accepted accounting principles requires management
          to make estimates and assumptions that affect the reported
          amounts of assets and liabilities at the date of the financial
          statements and the reported amounts of revenues and expenses
          during the reporting period.  Actual results could differ from
          those estimates.






                                                       Page 6 of 10
                        MODERN TECHNOLOGY CORP.
            NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
              FOR THE YEARS ENDED JUNE 30, 1997 AND 1996
                              (Continued)

          INCOME TAXES

          The Company accounts for income taxes in accordance with
          Statement of Financial Accounting Standards ("SFAS") No. 109,
          "Accounting for Income Taxes."  SFAS 109 has as its basic
          objective the recognition of current and deferred income tax
          assets and liabilities based upon all events that have been
          recognized in the financial statements as measured by the
          provisions of the enacted tax laws.

          Valuation allowances are established when necessary to reduce
          deferred tax assets to the estimated amount to be realized. 
          Income tax expense represents the tax payable for the current
          period and the change during the period in the deferred tax
          assets and liabilities.

          DEFERRED REGISTRATION COSTS

          As of June 30, 1997, the Company's subsidiary, Coral, has
          incurred deferred registration costs of $25,907 relating to
          expenses incurred in connection with the Proposed Distribution
          of Coral's securities.  Upon consumation of this Proposed
          Distribution, the deferred registration costs will be charged
          to equity.  Should the Proposed Distribution prove to be
          unsuccessful, these deferred costs, as well as additional
          expenses to be incurred, will be charged to operations.

NOTE 3:   INVESTMENT IN EQUITY SECURITIES (At Cost)

          Investments in Non Marketable Equity Securities consist of the
          following:
                                        June 30,   June 30,
                                          1997       1996  
          Investment in 25,000 Shares
          of Delta Three, Inc.          $25,000    $25,000

          Investment in TTR Inc. 
          10% Promissory Note               -0-     25,000

          Investment in 72 million
          restricted shares in
          Daine Industries, Inc.         15,900     15,900

          Investment in 50,100,000
          restricted shares in
          Davin Enterprises, Inc.         7,950      7,950

          Investments in other
          restricted securities             920        920

                                        $49,770    $74,770

                                                   Page 7 of 10
                        MODERN TECHNOLOGY CORP.
            NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
              FOR THE YEARS ENDED JUNE 30, 1997 AND 1996
                              (Continued)

          The Company purchased 72 million shares of Daine Industries,
          Inc. stock at a cost of $15,900.  This represents 29% of the
          total outstanding shares of common stock.

          The Company purchased 50,100,000 shares of Davin Enterprises,
          Inc. at a cost of $7,950.  This represents 25.8% of the total
          outstanding shares of common stock.

          The Company purchased an investment in TTR Inc., a 10%
          promissory note in the amount of $25,000 with warrants for
          4,000 shares exercisable at $.01 at the time of a TTR initial
          public offering.  TTR Inc. incorporated for the purpose of
          designing, developing, and marketing computer software
          products.  During the quarter ended March 31, 1997, TTR
          completed its initial public offering and repaid the note with
          interest.  The Company also exercised its warrants and
          realized a gain of $29,940.

          The Company purchased 25,000 shares of Delta Three Inc. for
          $25,000.  Delta Three, Inc. is a telecommunications provider
          using Internet technology for voice transmission.  

NOTE 4:   INVESTMENT IN AFFILIATE

          Investment in Soft Sail Wind Power Inc. (Soft Sail)
          (representing approximately 36% of the outstanding common
          stock).

          The summarized unaudited financial information below
          represents the Company's nonsubsidiary affiliate:

          Balance Sheet Data at June 30, 1996
            Total Assets                           $12,656
            Total Liabilities                       11,400
              Net Assets                             1,256
            Company's Equity in Net Assets             452

          Earnings Data
            Net Earnings (Loss)                    (26,350)
            Company's Equity in Net 
              Earnings (Loss)                       (9,486)

          During the year ended June 30, 1997 the Company recognized a
          complete loss on its investment and loan to Soft Sail.  There
          is no financial information available since June 30, 1996.  At
          the present time the Company does not believe Soft Sail will
          be able to repay its debt to the Company and has therefore
          considered its debt and equity investment in Soft Sail to be
          worthless.  The loss on the loan was $11,400 and the loss in
          the current year on its equity investment was $16,005.


                                                       Page 8 of 10
                     MODERN TECHNOLOGY CORP.
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED JUNE 30, 1997 AND 1996
                           (Continued)

NOTE 5:   INCOME TAXES

          The provision for income taxes is comprised of the
          following:
                                       6/30/97  6/30/96  6/30/95
            Current                    $ 1,838  $1,011    $-0-
            Deferred                    (7,375)    -0-     -0-
                                       $(5,537) $1,011    $-0-

          The provision for income taxes differs from the amount
          computed by applying the statutory federal income rate as
          follows:
                                       6/30/97  6/30/96  6/30/95
            Expected statutory amount  $   781  $1,011   $-0-
            Net operating loss          (7,375)    -0-    -0-
            State income taxes, net
             of federal benefit          1,057     -0-    -0-
                                       $(5,537) $1,011   $-0-

          Deferred income taxes reflect the net tax effects of
          temporary differences between the carrying amounts of
          assets and liabilities for financial reporting purposes
          and amounts used for income tax purposes and the impact
          of available net operating loss carryforwards.  The net
          operating loss of approximately $25,000 will expire in
          fiscal year June 30, 2012.

          The tax effect of significant temporary differences,
          which comprise the deferred tax assets are as follows:

                                       6/30/97  6/30/96  6/30/95
          Deferred tax assets:
            Net operating loss
             carry forwards            $ 7,375  $-0-     $-0-
            Net deferred tax (assets)  $(7,375) $-0-     $-0-

NOTE 6:   POSTRETIREMENT BENEFITS

          The company does not maintain any employee benefits
          currently.  The company does not maintain a plan for any
          postretirement employee benefits, therefore, no provision
          was made under FAS's 106 and 112.

NOTE 7:   RELATED PARTY TRANSACTIONS

          Davin Enterprises, Inc. (Davin) entered into an oral
          agreement with Modern Technology Corp. providing for the
          partial use of office space for Davin on a month to month
          basis.  The company does not pay rent but pays a
          management fee of $9,600 per year to Modern Technology
          Corp. for services.  There were no outstanding balances
          between any companies.
                                                    Page 9 of 10
                     MODERN TECHNOLOGY CORP.
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
           FOR THE YEARS ENDED JUNE 30, 1997 AND 1996
                           (Continued)

          Arthur Seidenfeld, President and a director of the
          Company, owns 14.5% of the outstanding shares of Daine
          Industries, Inc. and 29.4% of the outstanding shares of
          Davin Enterprises, Inc.  Anne Seidenfeld, Treasurer,
          Secretary and a director of the Company, owns 12% of the
          outstanding shares of Modern Technology Corp.  Anne
          Seidenfeld is Arthur Seidenfeld's mother.













































                                                    Page 10 of 10

                                  SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Securities Act
of 1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.


                            MODERN TECHNOLOGY CORP.


                              By Arthur J. Seidenfeld
                                 President, Principal Executive Officer
                                 and Principal Financial Officer
                                 Dated:  September 29, 1997



Pursuant to the requirements of the Securities Act of 1934, this report has been
signed below by the following persons on behalf of the Registrant and in the
capacities and on the date indicated.


Name                  Title                             Date


Arthur Seidenfeld     President and Director            September 29, 1997


Anne Seidenfeld       Treasurer, Secretary              September 29, 1997
                      and Director


Gerald Kaufman        Director                          September 29, 1997