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 Ended June 30, 2001
Commission File #2-80891-NY


                    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  Belle Harbor, NY 11694

(Address of Principal Executive Office)                  (Zip Code)


                        (718)318-0994


      (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 10, 2001, 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 the Registrant at September 10, 2001
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, 2001 the Registrant
added two new clients for consulting services.

During the year ended June 30, 1999, the Registrant was
involved in providing consulting services to Coral Development
Corp.  During December 1996 the Registrant purchased 403,000 shares
of Coral Development Corp. ("Coral") for $30,300.  The Registrant
has registered these shares with the Securities and Exchange
Commission with the intention of distributing those shares to the
Registrant's shareholders in the form of a dividend.

On July 22, 1998, Coral signed a merger agreement with
Omnicomm Systems Inc. ("Omnicomm"), a company in the computer
software and internet field.  Omnicomm filed a Form 10-SB on
December 22, 1998 and the merger with Coral was concluded in
February 1999.  As of June 30, 1999, the Registrant declared a
distribution to its shareholders in the form of all the 403,000
shares of Omnicomm common stock that the Registrant owned.

During February 1999, the Registrant purchased a $100,000
convertible note in Omnicomm.  The note carried a 10% interest rate
and was convertible at the Registrant's option into 80,000 shares
of Omnicomm exercisable at $1.25 each.  In July 2000 the Registrant
converted the $100,000 note into 80,000 shares of Omnicomm.  As of
September 18, 2000, the Registrant has sold 36,500 shares of
Omnicomm and generated approximately $86,000 in gross proceeds from
the sale of these shares.

The Registrant has signed an agreement on December 8, 2000
to invest up to $238,500 in exchange for 403,000 shares of
Scientio Inc., ("Scientio") a United Kingdom based development
stage company engaged in developing a line of software products
(XML products).  The shares received by the Registrant represents
a 20% ownership interest in Scientio.  Scientio is a newly formed
U.S. company established in the state of Delaware with operations
conducted in the United Kingdom.  Scientio has not generated any
revenues from its inception (in December 2000) through June 30.
2001.
As part of the agreement, Scientio intends to register
the shares owned by the Registrant under the Securities Act, for
distribution and trading.  Upon the effective date of the proposed
Registration Statement, the Registrant intends to distribute its
403,000 share position in Scientio to its shareholders in a
transaction similar to the Omnicomm distribution discussed earlier
in this management's discussion.  The Registrant will cover
registration costs and expenses in connection with the preparation
and filing of the proposed registration statement of the Scientio
shares.
An investment of $188,500 by the Registrant will be used
by Scientio to complete and test its initial XML software products
and enable Scientio to begin a marketing program.  The proposed XML
Miner and XML Rule products are targeted to software developers as
they relate to the field of data mining.  Through June 30, 2001,
the Registrant has invested $209,109.  The Registrant's portion of
its investment in Scientio treated as goodwill is being amortized
over a three year period.  In the consolidated statement of
operations for the year ended June 30, 2001, the Registrant has
recorded goodwill amortized amounting to $27,881 and has recorded
its share of Scientio's loss amounting to $15,314.  On the
consolidated balance sheet at June 30, 2001, part of the
Registrant's investment in Scientio has been carried as Goodwill -
$139,406.  No assurances can be given that Scientio's XML software
products will be successfully received by software developers
worldwide.
The Registrant has signed an agreement on March 19, 2001
to invest $100,000 - in exchange for 790,604 shares of Interactive
Medicine, Inc. ("Interactive"), a Florida based development stage
company engaged in the healthcare Internet business. Interactive
aggregates medical opinion leaders, physician peer groups, shared
content and commerce into specific web based communities, each a
Healthcare Channel. With its proprietary technology, consisting of
a set of Internet-based connectivity tools and solutions, it hopes
to become one of the premier medical specialty networks used by
doctors and other healthcare providers. For its most recent fiscal
year, Interactive generated revenues of $90,925 with a net loss of
$420,969. The 790,604 shares of Interactive held by the Registrant
represents a 5% ownership interest in Interactive.
As part of the agreement, Interactive intends to register
the shares owned by the Registrant under the Securities Act, for
distribution and trading. Upon the effective date of the proposed
Registration Statement, the Registrant intends to distribute its
790,604 share position in Interactive to its shareholders in a
transaction similar to the Omnicomm distribution and the Scientio
distribution discussed earlier in this management's discussion. The
$100,000 the Registrant has invested in Interactive will be used by
Interactive to cover registration costs and expenses in connection
with the preparation and filing of the proposed registration
statement of the Interactive shares, with any funds not spent for
registration procedures to be used by Interactive for working
capital purposes.
There is a clause in the agreement with Interactive which
takes effect after 1 year of the filing of a registration
statement. If the registration statement is not declared effective
within one year of its filing management of Interactive has the
right to terminate the agreement, receive back the 790,604 shares
held by the Registrant and return the $100,000 - invested by the
Registrant.
During March 1999, the Registrant established a subsidiary
entitled Excess Materials, Inc. ("Excess Materials").  Excess
Materials is an electronic internet marketplace for corporate
buyers and sellers of industrial supplies, equipment, metals,
animal hides and textile items.  Excess Materials derives its
revenues from commissions paid by the seller on completed
transactions.  For the year ended June 30, 2001 Excess did not
generate any revenues and at June 30, 2001 it had approximately
620 registered members.  Excess plans to restructure its
operations to generate revenues from charging future members an
annual fee as compared to a commission on completed transactions.

On March 9,2001, Lite King Corp ("Lite King") through a
wholly owned subsidiary acquired all of the assets and subsidiaries
of National Cabling Services, Inc. (National Cabling"). At the
completion of the merger, shareholders of National Cabling received
5,149,029 shares of Lite King. Upon signing the merger agreement,
the officers and directors of Lite King resigned (the same officers
and directors of the Registrant), and were replaced by officers and
directors of National Cabling. National Cabling's principal
business activity is the design and installation of cabling for
computer networks (fiberoptic). The Registrant owns 719,971 shares
of Lite King.

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 the fiscal year ended June 30, 2001, the Registrant has
generated a  net loss of $27,996.  Its revenue for the year ended
June 30, 2001 was derived from interest income of $35,517 and gain
on securities sales (sale of Omnicomm System shares) of $65,683.
The Registrant's revenues of $101,200 for the year ended June 30,
2001 has been offset by the following expenses:  Officers' salaries
of $26,660, general and administrative expenses, consisting of
those generated by the Registrant's 70% owned subsidiary Excess
Materials Inc and salaries to officers (total of $54,745),
goodwill amortization of the investment in Scientio of $27,881
and equity in loss of affiliate -Scientio Inc $15,314.
There was also income tax expense of $4,596 generated.  For the
year ended June 30, 2000, the Registrant generated a net loss of
$39,216 which can be attributed primarily to expenses generated by
the Registrant's 70% owned subsidiary, Excess Materials Inc.

Item 2.  Properties.

As of June 30, 2001, the Registrant owned no property.  The
Registrant utilizes some space in the home of Arthur and Anne
Seidenfeld, treasurer and president of the Registrant.

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 - 377 shareholders of record of 9/10/01.

Dividends - During the year ended June 30, 1999, the Registrant was
involved in providing consulting services to Coral Development
Corp.  During December 1996, the Registrant purchased 403,000
shares of Coral Development Corp. ("Coral") for $30,300.  The
Registrant had registered these shares with the Securities and
Exchange Commission with the intention of distributing these shares
to the Registrants' shareholders in the form of a dividend.  As of
June 30, 1999, the Registrant declared a distribution to its
shareholders in the form of all of the 403,000 shares of Omnicomm
Systems Inc. ("Omnicomm") common stock that the Registrant owned.


Item 6.      Selected Financial Data

                              For the Year ended June 30,
                      2001       2000     1999      1998       1997

Total Revenues      $101,200  $ 43,812  $266,984  $102,991   $72,985
Operating Income
(Loss) before tax    (23,400)  (42,326)  144,323    28,160     6,388
Net Income (Loss)    (27,996)  (39,216)  103,105    16,198    11,925
Net Income (Loss)
 per share               NIL      NIL       $.01       NIL      NIL
Total Assets         759,174   788,106   902,861   752,417   731,238
Long Term Debt           -0-       -0-       -0-       -0-       -0-
Dividends                -0-       -0-    30,300       -0-       -0-

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

During the fiscal year ended June 30, 2001, the Registrant had
generated a net loss of $27,996.  Its revenues for the year ended
June 30, 2001 was derived from interest income of $35,517 and gain
on securities sales (sale of shares in Omnicomm Systems) of
$65,683.  The Registrant's revenues of $101,200 has been offset by
the following:  officers' salaries of $26,660, general and
administrative expenses(consisting of expenses generated by the
Registrant's 70% owned subsidiary, Excess Materials, Inc and
accounting and legal expenses) of $54,745, equity in a loss by
Scientio Inc. of $15,314 (the Registrant has a 20% ownership interest in
Scientio Inc.), and goodwill amortization of the investment in
Scientio of $27,881.  During the fiscal year, income tax expense
generated amounted to $4,596.

During the fiscal year ended June 30, 2000 the Registrant had
a net loss of $39,216.  Its revenue for the year ended June 30,
2000 was derived from interest income of $43,812.  The loss can be
attributed primarily to expenses related to the Registrant's 70%
owned subsidiary, Excess Materials Inc.

Fiscal year 1999 revenues and income was influenced by
interest income and gains from the sale of securities.  During
fiscal year 1999, the revenues amounted to $266,984 as compared
with the comparative fiscal year 1998 figure of $102,991.  The net
income figure for fiscal year 1999 was principally due to the sale
of Davin Enterprises Inc. securities (Davin Enterprises Inc. merged
with Creative Master International Inc. in December 1997).

The Registrant received management fees of $3,200 from Davin
for the fiscal year ended June 30, 1998.  The Registrant provided
administrative, clerical, bookkeeping and other services to Davin.
 The agreement was terminated December 31, 1997.

During the year ended June 30, 1999 the Registrant was
involved in providing consulting services to Coral Development
Corp.  During December 1996 the Registrant purchased 403,000 shares
of Coral Development Corp. ("Coral") for $30,300.  The Registrant
had registered these shares with the Securities and Exchange
Commission with the intention of distributing these shares to the
Registrant's shareholders in the form of a dividend.  As of June
30, 1999 the Registrant declared a distribution to its shareholders
in the form of all of the 403,000 shares of Omnicomm Systems Inc.
("Omnicomm") common stock that the Registrant owned.



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 in the year
ended June 30, 1997.

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.  This investment was
sold during the year ended June 30, 1998.

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 fiscal year 1997 on its equity investment was $16,005.

During the fiscal year ended June 30, 1999 the Registrant
established a subsidiary entitled Excess Materials Inc. ("Excess
Materials").  Excess Materials is an electronic internet
marketplace for corporate buyers and sellers of industrial
supplies, equipment, metals, animal hides and textile items.
Excess Materials derives its revenues from commissions paid by the
seller on completed transactions.  The Registrant owns 70% of the
shares of Excess Materials.

For the year ended June 30, 2001 Excess Materials did not
generate any revenues.  At June 30, 2001 Excess Materials had
approximately 600 registered members.

At June 30, 2001 the Registrant's total assets amounted to
$759,174 and as compared with $788,106 at June 30, 2000.  At June
30, 2001, stockholders' equity amounted to $749,810, as compared
with $777,806 at June 30, 2000.

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      50      President and             Next Annual
                               Director                   Meeting
Anne Seidenfeld        88      Treasurer, Secretary      Next Annual
                               and Director               Meeting
Gerald Kaufman         60      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 and was president and director of Lite King
Corp, a public reporting company from February 1989 until March
2001 when Lite King Corp merged with National Cabling Services Inc.
 He was also president and director of Davin Enterprises, Inc. (a
publicly traded company that went public in Sept. 1987) from 1987
until December 1997 when Davin merged with Creative Masters
International Inc., a manufacturer of replica cars.  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 until
December 1998, he was president and director of Coral Development
Corp., a public company which merged with Omnicomm Systems Inc., a
company engaged in the computer software/internet field.  He is
president of Excess Materials, Inc., a 70% owned subsidiary of the
Registrant engaged in the internet commerce field and is secretary
and a director of Scientio Inc., a software development 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.  She is treasurer and secretary of Excess
Materials Inc.  She was treasurer, secretary and director of Coral
Development Corp from December 1996 to December 1998 and was
Treasurer, Secretary and Director of Davin Enterprises Inc. from
1987 until December 1997.  She was treasurer  and Director of Lite
King Corp until March 2001 when Lite King Corp merged with National
Cabling Services Inc.



Gerald Kaufman, Director, has been a practicing attorney for
over thirty years.  He has served as a director of the Registrant,
along with being a director of Daine Industries Inc. since 1990 and
a director of Lite King Corp from 1998 until March 2001.  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 Executive Compensation.

During the fiscal year ended June 30, 2001, management
salaries were as follows:

Anne Seidenfeld - Treasurer-Secretary  $7,200
Arthur Seidenfeld - President         $19,460

During the year ended June 30, 2000, Anne Seidenfeld, pursuant
to an oral agreement with the Company earned $7,000 as an annual
salary. Arthur Seidenfeld, the Registrant's president did not earn
any salary during the year ended June 30, 2000.

      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 of 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, 1998, the Registrant received
management fees from Davin Enterprises, Inc. amounting to $3,200.
Arthur Seidenfeld, President and a director of the Registrant owned
44,063 of the outstanding shares of Davin Enterprises, Inc.  Anne
Seidenfeld, Treasurer-Secretary and a director of the Registrant
owned 5,470 of the outstanding shares of Davin Enterprises, Inc.
Davin Enterprises Inc.'s name was changed to Creative Master
International Inc. after Creative Master Inc. merged with Davin
Enterprises Inc.  Arthur Seidenfeld and Anne Seidenfeld sold the
shares they held in Davin Enterprises Inc. in 1999.

      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
CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2001 AND JUNE 30, 2000
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY FOR THE PERIOD JULY
   1, 1998 TO  JUNE 30, 2001
CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEARS ENDED JUNE 30,
  2001, 2000 AND 1999
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEARS ENDED JUNE 30,
  2001, 2000 AND 1999
NOTES TO CONSOLIDATED 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.


      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 20, 2001



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 20, 2001


Anne Seidenfeld        Treasurer, Secretary        September 20, 2001
and Director


Gerald Kaufman         Director                    September 20, 2001

















      MODERN TECHNNOLOGY CORP.

      FINANCIAL STATEMENTS

      JUNE 30, 2001 AND 2000










      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            6-12











      REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS



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


We have audited the accompanying consolidated balance sheets of
MODERN TECHNOLOGY CORP. as at June 30, 2001 and 2000 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, 2001.  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, 2001 and
2000, and the consolidated results of its operations and cash flows
for the three years in the period ended June 30, 2001, in
conformity with generally accepted accounting principles.



                                GREENBERG & COMPANY LLC

Springfield, New Jersey
July 20, 2001


                                            Page 1 of 12


                      MODERN TECHNOLOGY CORP.
                    CONSOLIDATED BALANCE SHEETS

                                                      June 30,
                                                 2001          2000

      A S S E T S

CURRENT ASSETS
Cash and Cash Equivalents                      $472,617      $663,250
Other Current Assets                                -0-         5,000
                                                -------       -------
                                                472,617       668,250
                                                -------       -------

EQUIPMENT - At Cost                              15,405        13,500
Less:  Accumulated Depreciation                 (12,005)      (11,007)
                                                 ------        ------
                                                  3,400         2,493
                                                 ------        ------
OTHER ASSETS
Investments, At Cost                            116,800        16,800
Investments, at Equity                           26,508           -0-
Note Receivable                                     -0-       100,000
Other Assets                                        443           563
Goodwill, net                                   139,406           -0-
                                                -------       -------
                                                283,157       117,363
                                                -------       -------

TOTAL ASSETS                                   $759,174      $788,106
                                                =======       =======


      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                               $  5,500      $ 10,000
Income Tax Payable                                3,564           -0-
                                                  -----        ------
  Total Current Liabilities                       9,064        10,000
                                                  -----        ------

MINORITY INTEREST                                   300           300
                                                    ---           ---
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                               252,634       280,630
                                                -------       -------
                                                749,810       777,806
                                                -------       -------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY     $759,174      $788,106
                                                =======       =======

See accompanying summary of accounting policies and notes to financial
statements.


                                                       Page 2 of 12
<TABLE>
<CAPTION>

                  MODERN TECHNOLOGY CORP.
      CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
       FOR THE PERIOD JULY 1, 1998 TO JUNE 30, 2001



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

<S>               <C>             <C>         <C>           <C>           <C>
BALANCES AT
JULY 1, 1998      20,150,000      $2,015      $495,161       $247,041      $744,217

Dividend
distribution of
Omnicomm Systems
Inc. stock to
Modern Technology
stockholders                                                  (30,300)      (30,300)

Net Income (Loss)
for the Year Ended
June 30, 1999                                                 103,105       103,105
                   ----------       -----       -------       -------       -------
BALANCES AT
JUNE 30, 1999      20,150,000       2,015       495,161       319,846       817,022

Net Income (Loss)
for the Year Ended
June 30, 2000                                                 (39,216)      (39,216)

BALANCES AT        ----------       -----       -------       -------       -------
JUNE 30, 2000      20,150,000       2,015       495,161       280,630       777,806

Net Income (Loss)
for the Year Ended
June 30, 2001                                                 (27,996)      (27,996)

BALANCE AT         ----------       -----       -------       -------       -------
JUNE 30, 2001      20,150,000      $2,015      $495,161      $252,634      $749,810
                   ==========       =====       =======       =======       =======
</TABLE>





See accompanying summary of accounting policies and notes to financial
statements.


                                                   Page 3 of 12



             MODERN TECHNOLOGY CORP.
      CONSOLIDATED STATEMENTS OF OPERATIONS





                                  For The Years Ended June 30,
                                 2001            2000            1999


REVENUES

Interest Income               $   35,517      $   43,812      $   35,834

Gain on Securities Sales          65,683             -0-         231,150
                                 -------          ------         -------
                                 101,200          43,812         266,984
                                 -------          ------         -------
EXPENSES

Officers' Salaries                26,660           7,000          29,575

General and Administrative
  Expenses                        54,745           79,138          65,677

Merger Related Expense                -0-             -0-          27,409

Equity in Loss of Affiliate       15,314              -0-             -0-

Goodwill amortization             27,881              -0-             -0-
                                 -------           ------         -------
                                 124,600           86,138         122,661
                                 -------           ------         -------
INCOME (LOSS) BEFORE TAXES       (23,400)         (42,326)        144,323

Income Tax Expense (Benefit)       4,596           (3,110)         41,218
                                  ------           ------         -------
NET INCOME (LOSS)             $  (27,996)      $  (39,216)     $  103,105
                                  ======           ======         =======
INCOME (LOSS) PER SHARE             NIL              NIL         $   .01
                                  ======           ======         =======
NUMBER OF WEIGHTED AVERAGE
SHARES OUTSTANDING             20,150,000       20,150,000      20,150,000
                               ==========       ==========      ==========




See accompanying summary of accounting policies and notes to financial
statements.


                                                     Page 4 of 12

<TABLE>
<CAPTION>
               MODERN TECHNOLOGY CORP.
      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                  For The Years Ended June 30,
                                               2001          2000          1999
<S>                                         <C>            <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)                           $(27,996)      $(39,216)      $103,105
Adjustments to Reconcile Net Income
to Net Cash Provided By (Used In)
Operating Activities:
Depreciation & Amortization                    28,879           832            356
Equity in Loss of Affiliate                    15,314            -0-           -0-
Gain on Investments                           (65,683)           -0-      (231,150)
Merger of Subsidiary                               -0-           -0-       (30,300)
Changes in Assets and Liabilities:
Decrease (Increase) in Other Current
Assets                                           5,000        17,360       (22,360)
Decrease (Increase) in Deferred
Registration Costs                                 -0-           -0-        26,007
Decrease (Increase) in Other Assets               120           (85)         ( 213)
 Increase (Decrease) Accrued
  Expenses and Taxes                             (936)       (75,839)        77,639
Net Cash Provided By (Used In)                 ------         ------         ------
Operating Activities                          (45,302)       (96,948)       (76,916)
                                               ------         ------         ------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures                           (1,905)           -0-         (3,561)
(Purchase) Sale of Securities                  165,683           -0-        239,100
Purchase of Investments                       (309,109)          -0-            -0-
Purchase - Note Receivable                       -0-             -0-       (100,000)
Net Cash (Used In) Provided By                 -------          ----        -------
Investing Activities                          (145,331)          -0-        135,539
                                               -------          ----        -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Capital Contribution - Minority Interest           -0-          300             -0-
Net Cash (Used In) Provided By                     ---          ---             ---
Financing Activities                               -0-          300             -0-
                                                   ---          ---             ---
Net Increase (Decrease) in Cash
and Cash Equivalents                          (190,633)       (96,648)       58,623
Cash and Cash Equivalents,
Beginning of Year                              663,250        759,898       701,275
CASH AND CASH EQUIVALENTS,                     -------        -------       -------
END OF YEAR                                   $472,617       $663,250      $759,898
                                               =======        =======       =======
Supplemental Disclosures Of Cash Flow Information
Cash Paid During The Period For:
Taxes                                         $  1,033       $ 40,405      $  2,665
Interest                                      $    -0-       $   -0-       $    -0-

</TABLE>
See accompanying summary of accounting policies and notes to financial
statements.

                                                             Page 5 of 12


                 MODERN TECHNOLOGY CORP.
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
        FOR THE YEARS ENDED JUNE 30, 2001 AND 2000

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.

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 the Company's wholly owned subsidiary through March 31,
1999.  (See Spinoff of Omnicomm Systems Inc. Investment.)  All
significant intercompany balances and transactions have been
eliminated in consolidation.  Modern invested $30,300 in Coral
during the quarter ended December 31, 1996.

During the quarter ended March 31, 1999, Modern merged Coral with
Omnicomm Systems, Inc. (Omnicomm).  In the exchange, Modern
received 403,000 shares of Omnicomm for all of the issued and
outstanding shares of Coral.  Modern then distributed all the stock
of Omnicomm to its shareholders.

In April 1999 the Company formed a subsidiary named Excess
Materials Inc. (Excess).  Excess accounts are included in the
consolidated financial statements at June 30, 2001, 2000 and 1999.
 Modern owns 70% of Excess.  Arthur Seidenfeld (Modern's president)
owns 10% of Excess, Anne Seidenfeld (Arthur's mother and
secretary/treasurer of Modern) owns 10% of Excess and a relative of
Mr. Seidenfeld owns 10% of Excess.

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 original maturities of 90 days or less.  The carrying amount
reported in the accompanying balance sheets approximates fair
value.


                                          Page 6 of 12

                MODERN TECHNOLOGY CORP.
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
        FOR THE YEARS ENDED JUNE 30, 2001 AND 2000
                     (Continued)


NOTE RECEIVABLE

During the year ended June 30, 1999 the Company purchased a
$100,000 convertible note  in  Omnicomm Systems Inc. (Omnicomm).
The note  carries a 10% annual interest rate and is convertible at
the Company's option into 80,000 shares of Omnicomm common stock.
The note matures in 2004. During the three months ended September
30, 2000, the Company exercised its right to convert the $100,000
convertible note in Onmicomm to 80,000 shares of Omnicomm common
stock. The Company sold all of Omnicomm common stock. As of June
30, 2001, the Company holds no Omnicomm common stock.

PROPERTY AND EQUIPMENT

Renewals and betterments are capitalized; maintenance and repairs
are expensed as incurred. Depreciation is calculated using the
straight line method over the asset's estimated useful life, which
generally approximates 5 years.


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.

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.

ADVERTISING

Advertising costs are expensed as incurred. Advertising expense for
the years ended June 30, 2001, 2000 and 1999 was $2,345, $-0-, and
$-0-, respectively.
                                                      Page 7 of 12






                MODERN TECHNOLOGY CORP.
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
        FOR THE YEARS ENDED JUNE 30, 2001 AND 2000
                       (Continued)





DEFERRED REGISTRATION COSTS

As of June 30, 1999, the Company's former subsidiary, Coral, had
incurred deferred registration costs of $48,930 relating to
expenses incurred in connection with the merger of Coral and
Omnicomm Systems Inc. Upon consummation of this merger, the
deferred registration costs were charged to operations.



SPINOFF OF OMNICOMM SYSTEMS INC INVESTMENT

As of June 30, 1999, Modern declared a distribution to its
shareholders in the form of all the 403,000 shares of Omnicomm
Systems Inc (Omnicomm) common stock that Modern owns.  During the
quarter ended March 31, 1999, Modern merged Coral (Modern's 100%
owned subsidiary) with Omnicomm.  In the exchange, Modern received
403,000 common shares of Omnicomm for all of the issued and
outstanding shares of Coral.  This represented approximately 30% of
the issued and outstanding common shares of Omnicomm at that time.
 Modern subsequently declared a distribution of the 403,000 common
shares of Omnicomm to Modern shareholders on a pro rata basis to
their Modern shareholdings.  Omnicomm was a privately held computer
systems integrator and software development company.  Modern
recognized no gain or loss on the distribution of the Omnicomm
shares.  The distribution does not qualify for tax-free treatment
under Internal Revenue Section 355.  Therefore, the shareholders of
Modern will receive the Omnicomm shares as a taxable dividend.  The
dollar amount of the dividend is $30,300, the amount of Modern's
investment in Coral.













                                                      Page 8 of 12


                   MODERN TECHNOLOGY CORP.
        NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
          FOR THE YEARS ENDED JUNE 30, 2001 AND 2000
                         (Continued)


Note 3:      CONCENTRATIONS OF CREDIT RISK

The Company's financial instruments that are exposed to
concentrations of credit risk consist primarily of cash.

At June 30, 2001 and June 30, 2000, the Company had deposits in
various financial institutions totaling a bank balance of $592,796
and $663,250, respectively. Of the bank balance, up to $4,127 and
$1,889 was covered by federal depository insurance. The remaining
balance was uninsured and uncollateralized. At times during the
year and at June 30, 2001 and June 30, 2000, the Company had funds
on deposit with banks that were uninsured and uncollateralized, as
a result, funds are at risk of loss. The Company has not
experienced any losses in such accounts and believes they are not
exposed to any significant credit risk on cash and cash
equivalents. The carrying amount of these deposits in the
accompanying financial statements was $472,617 and $663,250 at June
30, 2001 and June 30, 2000 respectively.

NOTE 4:      MARKETABLE SECURITIES

During the quarter ended December 31, 1998, the  investment in
Creative Master International Inc. (CMST) (formerly Davin
Enterprises, Inc.) of 37,575 shares was reclassified to a trading
security in accordance with Financial Accounting Standard (FAS)
115.  CMST shares were listed on the NASD National Market on
December 30, 1998.  The cost of these shares was $7,950.  During
the quarter ended March 31, 1999, the entire investment was sold.
The total realized gain was $231,150.

During the quarter ended September 30, 2000 the investment in
Omnicomm Systems, Inc. of 32,250 shares was considered a trading
security in accordance with Financial Accounting Standard (FAS)115.
Omnicomm shares are traded on the NASD over the counter bulletin
board system. The cost of these shares was $40,312. During the
quarter ended September 30, 2000, the total unrealized gain was
$24,188. During the quarter ended December 31, 2000, Modern sold
the remaining shares of Omnicomm.











                                              Page 9 of 12

                MODERN TECHNOLOGY CORP.
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
        FOR THE YEARS ENDED JUNE 30, 2001, AND 2000
                      (Continued)

NOTE 5:      INVESTMENT IN EQUITY SECURITIES (At Cost)

Investments in Non Marketable Equity Securities consist of the
following:
                                     June 30,      June 30,
                                       2001          2000
Investment in 360,000
restricted shares in
Daine Industries, Inc.              $ 15,900      $15,900

Investment in 5% of
total shares in Interactive
Medicine Inc.                        100,000          -0-

Investments in other
restricted securities                   900          900
                                    -------       ------
                                   $116,800      $16,800
                                    =======       ======

NOTE 6:      INVESTMENT IN EQUITY SECURITIES (At Equity)

Investments in Non Marketable Equity Securities consist of the
following:
                          June 30,      June 30,
                            2001         2000
Investment in 20% of
total shares in
Scientio Inc.             $26,508      $   -0-
                           ------          ---
                          $26,508      $   -0-
                           ======          ===

Since Modern owns 20% of Scientio Inc., the investment is accounted
for under the equity method. There were no intercompany
transactions between Modern and Scientio.  Since the net assets of
Scientio were less than Modern's investment, the excess of the pro
rata net assets of Scientio was recorded as goodwill of $167,287 at
June 30, 2001.  Goodwill is being amortized over three years using
straight line.  Goodwill amortization was $27,881 during the year
ended June 30, 2001.  The following unaudited information is
provided for Scientio as of May 15, 2001, (the most recent
information available):

            Total assets              $34,543
            Total liabilities             $49
            (Loss) for the period
            Dec 11, 2000(inception)
            Through May 15, 2001     $(76,569)





                                          Page 10 of 12
                  MODERN TECHNOLOGY CORP.
       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
         FOR THE YEARS ENDED JUNE 30, 2001 AND 2000
                         (Continued)

NOTE 7:      INCOME TAX EXPENSE (BENEFIT)

The provision for income taxes is comprised of the following:
                6/30/01      6/30/00      6/30/99
  Current       $6,633      $   405       $41,218
  Deferred      (2,037)      (3,515)         -0-
                 -----        -----        ------
                $4,596      $(3,110)      $41,218
                 =====        =====        ======
The provision for income taxes differs from the amount computed by
applying the statutory federal income rate as follows:
                                6/30/01      6/30/00      6/30/99
  Expected statutory amount      $2,978      $   -0-      $40,513
  Net operating loss             (2,037)      (3,515)         -0-
  State income taxes, net
   of federal benefit             3,655          405          705
                                  -----        -----       ------
                                 $4,596      $(3,110)     $41,218
                                  =====        =====       ======


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 deferred tax assets at June 30, 2001 and June
30, 2000 relate to Excess, the Company's 70% owned subsidiary, and
the timing differences resulting from the Company's investment
accounted for under the equity method. Since the accounts of Excess
are not allowed to be consolidated with Modern for tax purposes and
Excess has generated losses since inception, the deferred tax
assets associated with these losses have been fully reserved in the
valuation allowance.

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

                                      6/30/01      6/30/00
Deferred tax assets:
  Net operating loss
   carry forwards                      $18,000      $18,000
  Amortization of Intangibles            8,412          -0-
  Investment loss                        4,620          -0-
                                        ------       ------
    Gross deferred tax assets           31,032       18,000
Valuation allowance                    (31,032)     (18,000)
                                        ------       ------
  Net deferred tax assets              $   -0-      $   -0-
                                        ======       ======

The current net operating loss of approximately $39,000 expires in
the year ended June 30, 2021.  The amortization of intangibles and
investment loss result from the accounting treatment required by
GAAP for equity method investments.  The tax benefits have been
fully reserved due to a lack of consistent operating profitability.

                                               Page 11 of 12
                  MODERN TECHNOLOGY CORP.
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
        FOR THE YEARS ENDED JUNE 30, 2001 AND 2000
                       (Continued)

NOTE 8:      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 9:      RELATED PARTY TRANSACTIONS

Arthur Seidenfeld, President and a director of the Company, owns
14.5% of the outstanding shares of Daine Industries, Inc.  Anne
Seidenfeld, Treasurer, Secretary and a director of the Company,
owns approximately 8% of the outstanding shares of Daine
Industries, Inc.  Anne Seidenfeld is Arthur Seidenfeld's mother.
There were no related party transactions.





































                                 Page 12 of 12