Exhibit 99.1
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF KANSAS
KANSAS CITY DIVISION
IN RE: )
) Case No. 11-20140-11-rdb
) Case No. 11-20140-11-rdb
DIGITAL SYSTEMS, INC. ) Chapter 11
Debtor. )
________________________________)
DEBTOR'S STANDARD MONTHLY OPERATING REPORT (BUSINESS)
FOR THE PERIOD
FROM August 1, 2011 TO August 31, 2011
Comes now the above-named debtor and files its Monthly Operating Reports in accordance with the Guidelines established by the United States Trustee and FRBP 2015.
/s/ Joanne B. Stutz
Attorney for Debtor’s Signature
| Debtor's Address | Attorney's Address |
| and Phone Number: | and Phone Number: |
15621 W. 87th Street, Box 355 Lenexa, KS 66219 | 7225 Renner Road, Suite 200 Shawnee, KS 66217 (913) 962-8700; (913) 962-8701 (FAX) |
Note: The original Monthly Operating Report is to be filed with the court and a copy simultaneously provided to the United States Trustee Office. Monthly Operating Reports must be filed by the 21st day of the following month.
For assistance in preparing the Monthly Operating Report, refer to the following resources on the United States Trustee Program Website, http://www.justice.gov/ust/r20/index.htm.
| 1) | Instructions for Preparations of Debtor’s Chapter 11 Monthly Operating Report |
| 2) | Initial Filing Requirements |
| 3) | Frequently Asked Questions (FAQs)http://www.usdoj.gov/ust/ |
MOR-1
SCHEDULE OF RECEIPTS AND DISBURSEMENTS
FOR THE PERIOD BEGINNING August 1, 2011 and ending August 31, 2011
Name of Debtor: Digital Systems, Inc. Case Number: 11-20140-11-rdb
Date of Petition: January 21, 2011
| Current | Cumulative | ||||||||||||
| Month | to Petition Date | ||||||||||||
| 1. FUNDS AT BEGINNING OF PERIOD | $ | 205,107.49 | (a) | $ | 24,201.83 | (b) | |||||||
| 2. RECEIPTS: | |||||||||||||
| A. Cash Sales | - | ||||||||||||
| Minus: Cash Refunds | - | ||||||||||||
| Net Cash Sales | - | ||||||||||||
| B. Accounts Receivable | 202,714.26 | ||||||||||||
| C. Other Receipts (See MOR-3) | 762,859.56 | ||||||||||||
| (If you receive rental income, | - | ||||||||||||
| you must attach a rent roll.) | |||||||||||||
3. TOTAL RECEIPTS (Lines 2A+2B+2C) | 965,573.82 | ||||||||||||
| 4. | TOTAL FUNDS AVAILABLE FOR OPERATIONS (Line 1 + Line 3) | $ | 205,107.49 | $ | 989,775.65 | ||||||||
| 5. DISBURSEMENTS | |||||||||||||
| A. Advertising | - | ||||||||||||
| B. Bank Charges | 140.00 | 1,570.00 | |||||||||||
| C. Contract Labor | 5,000.00 | 51,034.85 | |||||||||||
| D. Fixed Asset Payments (not incl. in “N”) | - | ||||||||||||
| E. Insurance | 41,943.00 | ||||||||||||
F. Inventory Payments (See Attach. 2) | - | ||||||||||||
| G. Leases | - | ||||||||||||
| H. Manufacturing Supplies | - | ||||||||||||
| I. Office Supplies | 1,370.84 | ||||||||||||
J. Payroll - Net (See Attachment 4B) | 167,780.49 | ||||||||||||
| K. Professional Fees (Accounting & Legal) | 6,825.00 | 159,471.09 | |||||||||||
| L. Rent | 750.00 | 49,625.66 | |||||||||||
| M. Repairs & Maintenance | - | ||||||||||||
N. Secured Creditor Payments (See Attach. 2) | 186,977.59 | ||||||||||||
O. Taxes Paid - Payroll (See Attachment 4C) | 83,905.08 | ||||||||||||
P. Taxes Paid - Sales & Use (See Attachment 4C) | - | ||||||||||||
Q. Taxes Paid - Other (See Attachment 4C) | 5,714.52 | ||||||||||||
| R. Telephone | 1,506.96 | 8,671.78 | |||||||||||
| S. Travel & Entertainment | 4,185.62 | ||||||||||||
| Y. U.S. Trustee Quarterly Fees | 4,875.00 | ||||||||||||
| U. Utilities | 305.31 | 6,222.96 | |||||||||||
| V. Vehicle Expenses | - | ||||||||||||
W. Other Operating Expenses (See MOR-3) | 25,896.85 | ||||||||||||
6. TOTAL DISBURSEMENTS (Sum of 5A thru W) | 14,527.27 | 799,195.43 | |||||||||||
7. ENDING BALANCE (Line 4 Minus Line 6) | $ | 190,580.22 | (c) | $ | 190,580.22 | (c) | |||||||
MOR-2
I declare under penalty of perjury that this statement and the accompanying documents and reports are true and correct to the best of my knowledge and belief.
This 26th day of August, 2011. | /s/ David C. Owen |
| By: David C. Owen, Chairman/CEO |
(a)This number is carried forward from last month’s report. For the first report only, this number will be the balance as of the petition date.
(b)This figure will not change from month to month. It is always the amount of funds on hand as of the date of the petition.
(c)These two amounts will always be the same if form is completed correctly.
MOR-3
MONTHLY SCHEDULE OF RECEIPTS AND DISBURSEMENTS (cont’d)
Detail of Other Receipts and Other Disbursements
OTHER RECEIPTS:
Describe Each Item of Other Receipt and List Amount of Receipt. Write totals on Page MOR-2, Line 2C.
Cumulative
Description Current Month Petition to Date
| TOTAL OTHER RECEIPTS | Refunds |
“Other Receipts” includes Loans from Insiders and other sources (i.e. Officer/Owner, related parties directors, related corporations, etc.). Please describe below:
Loan Amount | Source of Funds | Purpose | Repayment Schedule |
OTHER DISBURSEMENTS:
Describe Each Item of Other Disbursement and List Amount of Disbursement. Write totals on Page MOR-2, Line 5W.
| Cumulative | ||||
| Description | Current Month | Petition to Date | ||
| TOTAL OTHER DISBURSEMENTS |
NOTE: Attach a current Balance Sheet and Income (Profit & Loss) Statement.
ATTACHMENT 1
MONTHLY ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
Name of Debtor: Digital Systems, Inc. Case Number: 11-20140-11-rdb
Reporting Period beginning August 1, 2011 Period ending August 31, 2011
MOR-4
ACCOUNTS RECEIVABLE AT PETITION DATE:
ACCOUNTS RECEIVABLE RECONCILIATION
(Include all accounts receivable, pre-petition and post-petition, including charge card sales which have not been received):
Beginning of Month Balance $ 176,140 (a)
PLUS: Current Month New Billings
MINUS: Collection During the Month $ (b)
| PLUS/MINUS: Adjustments or Writeoffs | $ * |
End of Month Balance $ 176,140 (c)
*For any adjustments or Write-offs provide explanation and supporting documentation, if applicable:
Customer receipts paid to FCG offset against interest and penalty fees
Adjustment made to refund overpayment on account.
POST PETITION ACCOUNTS RECEIVABLE AGING
(Show the total for each aging category for all accounts receivable)
| 0-30 Days | 31-60 Days | 61-90 Days | Over 90Days | Total |
For any receivables in the “Over 90 Days” category, please provide the following:
| Customer | Receivable Date | Status (Collection efforts taken, estimate of collectibility, write-off, disputed account, etc.) |
(a)This number is carried forward from last month’s report. For the first report only, this number will be the balance as of the petition date.
(b)This must equal the number reported in the “Current Month” column of Schedule of Receipts and
Disbursements (Page MOR-2, Line 2B).
(c)These two amounts must equal.
MOR-5
ATTACHMENT 2
MONTHLY ACCOUNTS PAYABLE AND SECURED PAYMENTS REPORT
Name of Debtor: Digital Systems, Inc. Case Number: 11-20140-11-rdb
Reporting Period beginning August 1, 2011 Period ending August 31, 2011
In the space below list all invoices or bills incurred and not paid since the filing of the petition. Do not include amounts owed prior to filing the petition. In the alternative, a computer generated list of payables may be attached provided all information requested below is included.
POST-PETITION ACCOUNTS PAYABLE
Date Incurred | Days Outstanding | Vendor | Description | Amount |
| See Attached | ||||||||
| TOTAL AMOUNT | (b) |
X Check here if pre-petition debts have been paid. Attach an explanation and copies of supporting documentation.
ACCOUNTS PAYABLE RECONCILIATION (Post Petition Unsecured Debt Only)
| Opening Balance | $ | 4,941.02 | (a) | |||
| PLUS: New Indebtedness Incurred This Month | $ | |||||
| MINUS: | Amount Paid on Post Petition, | $ | ||||
| Accounts Payable This Month | $ | |||||
| PLUS/MINUS: Adjustments | $ | * | ||||
| Ending Month Balance | $ | 4,941.02 | (c) | |||
*For any adjustments provide explanation and supporting documentation, if applicable.
SECURED PAYMENTS REPORT
List the status of Payments to Secured Creditors and Lessors (Post Petition Only). If you have entered into a modification agreement with a secured creditor/lessor, consult with your attorney and the United States Trustee Program prior to completing this section).
| Number | Total | |||||||
| Date | of Post | Amount of | ||||||
| Secured | Payment | Amount | Petition | Post Petition | ||||
| Creditor/ | Due This | Paid This | Payments | Payments | ||||
| Lessor | Month | Month | Delinquent | Delinquent | ||||
| TOTAL | (d) | |||||||
(a)This number is carried forward from last month’s report. For the first report only, this number will be zero.
(b, c)The total of line (b) must equal line (c).
(d)This number is reported in the “Current Month” column of Schedule of Receipts and Disbursements (Page MOR-2, Line 5N).
MOR-6
ATTACHMENT 3
INVENTORY AND FIXED ASSETS REPORT
Name of Debtor: Digital Systems, Inc. Case Number: 11-20140-11-rdb
Reporting Period beginning August 1, 2011 Period ending August 31, 2011
INVENTORY REPORT
| INVENTORY BALANCE AT PETITION DATE: | $ | |||||
| INVENTORY RECONCILIATION: | ||||||
| Inventory Balance at Beginning of Month | $ | 0.00 | (a) | |||
| PLUS: Inventory Purchased During Month | $ | |||||
| MINUS: Inventory Used or Sold | $ | |||||
| PLUS/MINUS: Adjustments or Write-downs | $ | * | ||||
| Inventory on Hand at End of Month | $ | 0.00 | ||||
METHOD OF COSTING INVENTORY: FIFO
*For any adjustments or write-downs provide explanation and supporting documentation, if applicable.
Sale of Assets March 2011.
INVENTORY AGING
| Less than 6 | 6 months to | Greater than | Considered | |||||||
| months old | 2 years old | 2 years old | Obsolete | Total Inventory | ||||||
| % | 100.00 | % | % = | 100.00 % | * |
* Aging Percentages must equal 100%.
☐ Check here if inventory contains perishable items.
Description of Obsolete Inventory:
FIXED ASSET REPORT
FIXED ASSETS FAIR MARKET VALUE AT PETITION DATE: $ 1.219.241.95(b)
(Includes Property, Plant and Equipment)
BRIEF DESCRIPTION (First Report Only):
FIXED ASSETS RECONCILIATION:
Fixed Asset Book Value at Beginning of Month $ -0- (a)(b)
MINUS: Depreciation Expense $
PLUS: New Purchases $
PLUS/MINUS: Adjustments or Write-downs $
Ending Monthly Balance $ -0-
*For any adjustments or write-downs, provide explanation and supporting documentation, if applicable.
Asset Sale March 2011.
BRIEF DESCRIPTION OF FIXED ASSETS PURCHASED OR DISPOSED OF DURING THE REPORTING PERIOD:
(a)This number is carried forward from last month’s report. For the first report only, this number will be the
balance as of the petition date.
(b)Fair Market Value is the amount at which fixed assets could be sold under current economic conditions.
Book Value is the cost of the fixed assets minus accumulated depreciation and other adjustments.
MOR-7
ATTACHMENT 4A
MONTHLY SUMMARY OF BANK ACTIVITY - OPERATING ACCOUNT
Name of Debtor: Digital Systems, Inc. Case Number: 11-20140-11-rdb
Reporting Period beginning August 1, 2011 Period ending August 31, 2011
Attach a copy of current month bank statement and bank reconciliation to this Summary of Bank Activity. A standard bank reconciliation form can be found at http://www.justice.gov/ust/r20/index.htm. If bank accounts other than the three required by the United States Trustee Program are necessary, permission must be obtained from the United States Trustee prior to opening the accounts. Additionally, use of less than the three required bank accounts must be approved by the United States Trustee.
NAME OF BANK: FNB Olathe BRANCH:
ACCOUNT NAME: Operating Account ACCOUNT NUMBER: 0139602
PURPOSE OF ACCOUNT: OPERATING
| Ending Balance per Bank Statement | $ | 192,422.72 | |||
| Plus Total Amount of Outstanding Deposits | $ | ||||
| Minus Total Amount of Outstanding Checks and other debits | $ | 1,218.09 | * | ||
| Minus Service Charges | $ | ||||
| Ending Balance per Check Register | $ | 191,203.63 | **(a) |
*Debit cards are used by
**If Closing Balance is negative, provide explanation:.
The following disbursements were paid in Cash (do not includes items reported as Petty Cash on Attachment 4D: ( ☐ Check here if cash disbursements were authorized by United States Trustee)
| Date | Amount | Payee | Purpose | Reason for Cash Disbursement |
TRANSFERS BETWEEN DEBTOR IN POSSESSION ACCOUNTS
“Total Amount of Outstanding Checks and other debits”, listed above, includes:
$________________Transferred to Payroll Account
$________________Transferred to Tax Account
(a) The total of this line on Attachment 4A, 4B and 4C plus the total of 4D must equal the amount reported as
“Ending Balance” on Schedule of Receipts and Disbursements (Page MOR-2, Line 7).
MOR-8
ATTACHMENT 5A
CHECK REGISTER - OPERATING ACCOUNT
Name of Debtor: Case Number:
Reporting Period beginning Period ending
NAME OF BANK: BRANCH:
ACCOUNT NAME:
ACCOUNT NUMBER:
PURPOSE OF ACCOUNT: OPERATING
Account for all disbursements, including voids, lost checks, stop payments, etc. In the alternative, a computer generated check register can be attached to this report, provided all the information requested below is included.
| CHECK | ||||||||
| DATE | NUMBER | PAYEE | PURPOSE | AMOUNT | ||||
| TOTAL | $ |
MOR-9
ATTACHMENT 4B
MONTHLY SUMMARY OF BANK ACTIVITY - PAYROLL ACCOUNT
Name of Debtor: Digital Systems, Inc. Case Number: 11-20140-11-rdb
Reporting Period beginning August 1, 2011 Period ending August 31, 2011
Attach a copy of current month bank statement and bank reconciliation to this Summary of Bank Activity. A standard bank reconciliation form can be found at http://www.justice.gov/ust/r20/index.htm.
NAME OF BANK: FNB Olathe BRANCH:
ACCOUNT NAME: Payroll Account ACCOUNT NUMBER: 0149527
PURPOSE OF ACCOUNT: PAYROLL
| Ending Balance per Bank Statement | $ | 352.36 | * | ||
| Plus Total Amount of Outstanding Deposits | $ | ||||
| Minus Total Amount of Outstanding Checks and other debits | $ | 0.00 | * | ||
| Minus Service Charges | $ | ||||
| Ending Balance per Check Register | $ | 352.36 | **(a) |
*Debit cards must not be issued on this account.
**If Closing Balance is negative, provide explanation:
The following disbursements were paid by Cash: ( ☐ Check here if cash disbursements were authorized
by United States Trustee)
| Date | Amount | Payee | Purpose | Reason for Cash Disbursement |
The following non-payroll disbursements were made from this account:
| Date | Amount | Payee | Purpose | Reason for disbursement from this account |
(a)The total of this line on Attachment 4A, 4B and 4C plus the total of 4D must equal the amount reported as
“Ending Balance” on Schedule of Receipts and Disbursements (Page MOR-2, Line 7).
MOR-10
ATTACHMENT 5B
CHECK REGISTER - PAYROLL ACCOUNT
Name of Debtor: Case Number:
Reporting Period beginning Period ending
NAME OF BANK: BRANCH:
ACCOUNT NAME:
ACCOUNT NUMBER:
PURPOSE OF ACCOUNT: PAYROLL
Account for all disbursements, including voids, lost payments, stop payment, etc. In the alternative, a computer generated check register can be attached to this report, provided all the information requested below is included.
| CHECK | ||||||||
| DATE | NUMBER | PAYEE | PURPOSE | AMOUNT | ||||
| TOTAL | $ |
MOR-11
ATTACHMENT 4C
MONTHLY SUMMARY OF BANK ACTIVITY - TAX ACCOUNT
Name of Debtor: Digital Systems, Inc. Case Number: 11-20140-11-rdb
Reporting Period beginning August 1, 2011 Period ending August 31, 2011
Attach a copy of current month bank statement and bank reconciliation to this Summary of Bank Activity. A standard bank reconciliation form can be found on the United States Trustee website, http://www.justice.gov/ust/r20/index.htm.
NAME OF BANK: BRANCH: ACCOUNT CLOSED
ACCOUNT NAME: ACCOUNT NUMBER:
PURPOSE OF ACCOUNT: TAX
| Ending Balance per Bank Statement | $ | ||||
| Plus Total Amount of Outstanding Deposits | $ | ||||
| Minus Total Amount of Outstanding Checks and other debits | $ | * | |||
| Minus Service Charges | $ | ||||
| Ending Balance per Check Register | $ | **(a) |
*Debit cards must not be issued on this account.
**If Closing Balance is negative, provide explanation:
The following disbursements were paid by Cash: ( ☐ Check here if cash disbursements were authorized by
United States Trustee)
| Date | Amount | Payee | Purpose | Reason for Cash Disbursement | ||||
The following non-tax disbursements were made from this account:
| Date | Amount | Payee | Purpose | Reason for disbursement from this account | ||||
(a)The total of this line on Attachment 4A, 4B and 4C plus the total of 4D must equal the amount reported as
“Ending Balance” on Schedule of Receipts and Disbursements (Page MOR-2, Line 7).
MOR-12
ATTACHMENT 5C
CHECK REGISTER - TAX ACCOUNT
Name of Debtor: Case Number:
Reporting Period beginning Period ending
NAME OF BANK: BRANCH:
ACCOUNT NAME: ACCOUNT #
PURPOSE OF ACCOUNT: TAX
Account for all disbursements, including voids, lost checks, stop payments, etc. In the alternative, a computer-generated check register can be attached to this report, provided all the information requested below is included.
http://www.usdoj.gov/ust.
| CHECK | |||||||||
| DATE | NUMBER | PAYEE | PURPOSE | AMOUNT | |||||
| TOTAL | (d) |
SUMMARY OF TAXES PAID
| Payroll Taxes Paid | (a) | ||||||||
| Sales & Use Taxes Paid | (b) | ||||||||
| Other Taxes Paid | (c) | ||||||||
| TOTAL | (d) | ||||||||
(a) This number is reported in the “Current Month” column of Schedule of Receipts and Disbursements
(Page MOR-2, Line 5O).
(b) This number is reported in the “Current Month” column of Schedule or Receipts and Disbursements
(Page MOR-2, Line 5P).
(c) This number is reported in the “Current Month” column of Schedule of Receipts and Disbursements
(Page MOR-2, Line 5Q).
(d) These two lines must be equal.
MOR-13
ATTACHMENT 4D
INVESTMENT ACCOUNTS AND PETTY CASH REPORT
INVESTMENT ACCOUNTS
Each savings and investment account, i.e. certificates of deposits, money market accounts, stocks and bonds, etc., should be listed separately. Attach copies of account statements.
Type of Negotiable
| Current | |||||||||
| Instrument | Face Value | Purchase Price | Date of Purchase | Market Value | |||||
| TOTAL | (a) |
PETTY CASH REPORT
The following Petty Cash Drawers/Accounts are maintained:
| (Column 2) | (Column 3) | (Column 4) | |||||||
| Maximum | Amount of Petty | Difference between | |||||||
| Location of | Amount of Cash | Cash On Hand | (Column 2) and | ||||||
| Box/Account | in Drawer/Acct. | At End of Month | (Column 3) | ||||||
| TOTAL | $ | (b) |
For any Petty Cash Disbursements over $100 per transaction, attach copies of receipts. If there are no receipts, provide an explanation
TOTAL INVESTMENT ACCOUNTS AND PETTY CASH(a + b) $ (c)
(c)The total of this line on Attachment 4A, 4B and 4C plus the total of 4D must equal the
amount reported as “Ending Balance” on Schedule of Receipts and Disbursements (Page
MOR-2, Line 7).
MOR-14
ATTACHMENT 6
MONTHLY TAX REPORT
Name of Debtor: Digital Systems, Inc. Case Number: 11-20140-11-rdb
Reporting Period beginning August 1, 2011 Period ending August 31, 2011
TAXES OWED AND DUE
Report all unpaid post-petition taxes including Federal and State withholding FICA, State sales tax, property tax, unemployment tax, State workmen's compensation, etc.
| Name of | Date | Date Last | ||||||||
| Taxing | Payment | Tax Return | Tax Return | |||||||
| Authority | Due | Description | Amount | Filed | Period | |||||
| TOTAL | $ |
MOR-15
ATTACHMENT 7
SUMMARY OF OFFICER OR OWNER COMPENSATION
SUMMARY OF PERSONNEL AND INSURANCE COVERAGES
Name of Debtor: Digital Systems, Inc. Case Number: 11-20140-11-rdb
Reporting Period beginning August 1, 2011 Period ending August 31, 2011
Report all forms of compensation received by or paid on behalf of the Officer or Owner during the month. Include car allowances, payments to retirement plans, loan repayments, payments of Officer/Owner’s personal expenses, insurance premium payments, etc. Do not include reimbursement for business expenses Officer or Owner incurred and for which detailed receipts are maintained in the accounting records.
| Name of Officer or Owner | Title | Description | Amount Paid | |||
| David Owen | CEO | Services | $2,000.00 | |||
| Mickie Koslofsky | CFO | Services | $1,000.00 |
Dave and Laura Owen and Mickie Koslofsky continue to provide services as the Debtor winds down at the hourly rate of $100.00. These services should not be extensive.
PERSONNEL REPORT
| Full Time | Part Time | |||
| Number of employees at beginning of period | 0 | 0 | ||
| Number hired during the period | ||||
| Number terminated or resigned during period | ||||
| Number of employees on payroll at end of period | 0 | 0 | ||
CONFIRMATION OF INSURANCE
List all policies of insurance in effect, including but not limited to workers' compensation, liability, fire, theft, comprehensive, vehicle, health and life. For the first report, attach a copy of the declaration sheet for each type of insurance. For subsequent reports, attach a certificate of insurance for any policy in which a change occurs during the month (new carrier, increased policy limits, renewal, etc.).
| Agent | Date | ||||||||||
| and/or | Phone | Policy | Coverage | Expiration | Premium | ||||||
| Carrier | Number | Number | Type | Date | Due | ||||||
| CBIZ Insurance, Kathy Beamis, | 913-234-1918 | ||||||||||
| CBIZ/Acuity Insurance Co. | X13725 | General Liab | 4/1/2012 | 4/1/2012 | |||||||
| CBIZ/Nat’l Union Fire | 01-146-63-00 | D&O | 9/30/10 | 1/1/18 |
The following lapse in insurance coverage occurred this month:
| Policy | Date | Date | ||||
| Type | Lapsed | Reinstated | Reason for Lapse | |||
| G | Check here if U. S. Trustee has been listed as Certificate Holder for all insurance policies. |
MOR-16
ATTACHMENT 8
SIGNIFICANT DEVELOPMENTS DURING REPORTING PERIOD
Information to be provided on this page, includes, but is not limited to: (1) financial transactions that are not reported on this report, such as the sale of real estate (attach closing statement); (2) non-financial transactions, such as the substitution of assets or collateral; (3) modifications to loan agreements; (4) change in senior management, etc. Attach any relevant documents.
We anticipate filing a Plan of Liquidation and Disclosure Statement as soon as possible after liquidation of the assets.
MOR-17
| Ordinary Income/Expense | |||||||
| Expense | |||||||
| 0-60400 · Professional & Contract Service | |||||||
| 0-60410 · Consulting | |||||||
| 2-60410 · Consulting - Admin | 3,000.00 | ||||||
| Total 0-60410 · Consulting | 3,000.00 | ||||||
Legal Fees | |||||||
| 2-60430 · Legal Expense | 6,825.00 | ||||||
| Total Legal Fees | 6,825.00 | ||||||
0-60470 · Outside Services | |||||||
| 2-60470 · Outside Services - Admin | 2,000.00 | ||||||
| Total 0-60470 · Outside Services | 2,000.00 | ||||||
Total 0-60400 · Professional & Contract Service | 11,825.00 | ||||||
0-60500 · Facilities & Maintenance Costs | |||||||
| 2-60550 · Rent Building | 750.00 | ||||||
| 2-60590 · Utility Expense | 305.31 | ||||||
| Total 0-60500 · Facilities & Maintenance Costs | 1,055.31 | ||||||
0-60800 · Telecommunications | |||||||
| 6-60830 · Telephone Expense | 199.09 | ||||||
| 6-60840 · Internet and WAN Services | 1,307.87 | ||||||
| Total 0-60800 · Telecommunications | 1,506.96 | ||||||
0-62100 · Bank and Loan Charges | |||||||
| 2-62110 · Bank Charges | 140.00 | ||||||
| Total 0-62100 · Bank and Loan Charges | 140.00 | ||||||
Total Expense | 14,527.27 | ||||||
Net Ordinary Income | -14,527.27 | ||||||
Net Income | -14,527.27 | ||||||
| Aug 31, 11 | ||||
| ASSETS | ||||
| Current Assets | ||||
| Checking/Savings | ||||
| Cash Accounts | ||||
| 0-10070 · FNB Olathe Checking 013-960-2 | 191,203.63 | |||
| 0-10080 · FNB Payroll Acct. 014-952-7 | 352.36 | |||
| Total Cash Accounts | 191,555.99 | |||
Foreign Cash Accounts | ||||
| 0-10200 · YEN Bank of America 11407006 | -3,465.15 | |||
| 0-10210 · Yen Currency Fluctuation | 3,465.15 | |||
| Total Foreign Cash Accounts | 0.00 | |||
Total Checking/Savings | 191,555.99 | |||
Accounts Receivable | ||||
| Accounts Receivable | ||||
| 0-11000 · Accounts Receivable - Trade | 252,876.73 | |||
| 0-11010 · Accounts Receivable - Dealers | 23,719.75 | |||
| 0-11100 · Allowance for Doubtful Accounts | -100,456.68 | |||
| Total Accounts Receivable | 176,139.80 | |||
Total Accounts Receivable | 176,139.80 | |||
Other Current Assets | ||||
| Prepaid Expenses | ||||
| 0-13000 · Prepaid Expenses | 3,825.00 | |||
| Total Prepaid Expenses | 3,825.00 | |||
| Other Current Assets | ||||
| 0-14000 · Deposits | -1,000.00 | |||
| Total Other Current Assets | -1,000.00 | |||
Total Other Current Assets | 2,825.00 | |||
Total Current Assets | 370,520.79 | |||
TOTAL ASSETS | 370,520.79 | |||
LIABILITIES & EQUITY | ||||
| Liabilities | ||||
| Current Liabilities | ||||
| Accounts Payable | ||||
| Accounts Payable | ||||
| 0-20000 · Accounts Payable | 1,186,695.49 | |||
| 0-20100 · Accounts Payable - Chpt 11 | 4,941.02 | |||
| Total Accounts Payable | 1,191,636.51 | |||
Total Accounts Payable | 1,191,636.51 | |||
Other Current Liabilities | ||||
| Accrued Liabilities | ||||
| Accrued Expenses | ||||
| 0-21000 · Accrued Expenses - Other | 52,257.40 | |||
| 0-21010 · Accrued Property Taxes | 26,686.29 | |||
| 0-21020 · Accrued Sales Tax | 3,366.29 | |||
| Total Accrued Expenses | 82,309.98 | |||
Total Accrued Liabilities | 82,309.98 | |||
Total Other Current Liabilities | 82,309.98 | |||
Total Current Liabilities | 1,273,946.49 | |||
Total Liabilities | 1,273,946.49 | |||
Equity | ||||
| Shareholders' Equity - CS | ||||
| 0-30000 · Bridge Warrant 2005 Proceeds | 164,991.75 | |||
| 0-30010 · Stock Option Proceeds | 52,650.00 | |||
| 0-30020 · Public Warrant Proceeds | 769,171.09 | |||
| 0-30040 · Common Stock | 36,343,227.14 | |||
| 0-30050 · Common Stock Restricted | 1,560,000.00 | |||
| 0-30060 · Options Outstanding | 2,076,270.47 | |||
| 0-30065 · Warrants | 88,660.94 | |||
| 0-30070 · Offering Costs | -2,250,025.22 | |||
| Total Shareholders' Equity - CS | 38,804,946.17 | |||
Other Comprehensive Income | ||||
| 0-31000 · Deferred currency exchange | 3,465.15 | |||
| Total Other Comprehensive Income | 3,465.15 | |||
0-32000 · Retained Deficit | -36,493,467.90 | |||
| Net Income | -3,218,369.12 | |||
| Total Equity | -903,425.70 | |||
TOTAL LIABILITIES & EQUITY | 370,520.79 | |||
ICOP DIGITAL, INC. Reconciliation Detail
5:13 PM 09/21/11 0-10070 FNB Olathe Checking 013-960-2, Period Ending 08/31/2011
Type Date Num Name Clr Amount Balance
Beginning Balance 212,328.99
Cleared Transactions
Checks and Payments -16 items
Check 4/9/2011 9677 Last IT X -2,500.00 -2,500.00
Check 7/20/2011 9724 AMERICAN EXPRE... X -364.00 -2,864.00
Check 7/21/2011 9728 US Trustee Payment... X -975.00 -3,839.00
Check 7/30/2011 9729 Equivest, LLC X -2,000.00 -5,839.00
Check 7/30/2011 9730 Laura Owen, LLC X -1,600.00 -7,439.00
Check 8/3/2011 9733 SPRINT X -1,307.87 -8,746.87
Check 8/3/2011 9731 Kincaid & Rees Park- X -750.00 -9,496.87
Check 8/3/2011 9732 Kansas Gas Service X -29.11 -9,525.98
Check 8/5/2011 OL AT&T X -100.44 -9,626.42
Check 8/8/2011 9735 EVANS & MULLINI... X -2,925.00 -12,551.42
Check 8/8/2011 9734 Kansas City Power... X -276.20 -12,827.62
Check 8/17/2011 OL SPRINT X -98.65 -12,926.27
Check 8/23/2011 OL Marketwire Inc. X -2,000.00 -14,926.27
Check 8/25/2011 9736 United States Trustee X -3,900.00 -18,826.27
Check 8/29/2011 9738 Equivest, LLC X -2,000.00 -20,826.27
Check 9/30/2011 X -80.00 -20,906.27
Total Checks and Payments -20,906.27 -20,906.27
Deposits and Credits -1 item
Deposit 8/8/2011 X 1,000.00 1,000.00
Total Deposits and Credits 1,000.00 1,000.00
Total Cleared Transactions -19,906.27 -19,906.27
Cleared Balance -19,906.27 192,422.72
Uncleared Transactions
Checks and Payments - 4 items
Bill Pmt -Check 10/21/2010 9581 Corsino, Edwin - Exp... -14.09 -14.09
General Journal 6/23/2011 21283 -75.00 -89.09
General Journal 6/30/2011 21284 -130.00 -219.09
Check 8/29/2011 9737 Mickey Koslofsky -1,000.00 -1,219.09
Total Checks and Payments -1,219.09 -1,219.09
Total Uncleared Transactions -1,219.09 -1,219.09
Register Balance as of 08/31/2011 -21,125.36 191,203.63
New Transactions
Checks and Payments -10 items
Check 9/1/2011 9739 Kincaid & Rees Park- -750.00 -750.00
Check 9/1/2011 9740 Kansas Gas Service -29.11 -779.11
Check 9/5/2011 9741 Kansas City Power... -185.59 -964.70
Check 9/15/2011 9744 Kansas Franchise Tax -531.00 -1,495.70
Check 9/15/2011 9747 North Carolina Reve... -199.00 -1,694.70
Check 9/15/2011 9746 Utah State Tax Com... -100.00 -1,794.70
Check 9/15/2011 9742 Arizona DOR -50.00 -1,844.70
Check 9/15/2011 9743 Franchise Tax Board -25.00 -1,869.70
Check 9/15/2011 9745 State of New Jersey-... -11.00 -1,880.70
Check 9/20/2011 9748 EVANS & MULLINI... -12,971.71 -14,852.41
Total Checks and Payments -14,852.41 -14,852.41
Total New Transactions -14,852.41 -14,852.41
Ending Balance
-35,977.77
176,351.22
first National Bank of Olathe pg. 1
***************AUTO**3-DIGIT 662 2060 0.7820 AT 0.365 9 1 210
DIGITAL SYSTEMS INC
15621 W 87TH ST PKWY STE 355
LENEXA KS 66219-1435
PERIODIC STATEMENT Date: Aug 31, 2011
Period: Aug 01, 2011 to Aug 31, 2011 (31 Days )
ACCOUNT #: DDA - 0139602 Operating Account
Digital Systems Inc Debtor in Possession
Enclosures: 13
Beginning Balance as of 08/01/11
Deposits & Other Credits Charges & Fees Checks & Other Debits Average Balance Ending Balance as of 08/31/11
Charges And Fees
1 Outgoing Wire Fee Commercial Service Charge 1 Maintenance Fee 12 Per Check Fee 1 Per Deposit Fee 3 ACH Debits 1 Deposit Item - On-Us Less Earnings Credit 10.00 1.80 0.15 0.15 0.10 12.20
212,328.99
1,000.00 20.00 20,886.27 204,176.59
192,422.72
20.00 0.00
Transaction Information
Date Check#
08/08 08/05 08/17
08/23 08/23
Description Deposit
ACH Debit Payment ATT
ACH Debit ONLINE PMT SPRINT
Internet Initiated
Transaction-
O/W Marketwire, Inc
Credit Amount 1,000.00
Debit Amount
100.44
98.65 2,000.00 20.00
Outgoing Wire Fee
Page: 2
Account #: DDA-0139602
PERIODIC STATEMENT DIGITAL SYSTEMS INC
Aug 31, 2011
Transaction Information (continued)
Date Check# Description
Credit Amount Debit Amount
08/31 ACH Debit Cash Mgr FNB Olathe
60.00
Check Information
Date Check# Amount
08/23 9677 2,500.00
08/18 9724 * 364.00
08/09 9728 * 975.00
08/01 9729 2,000.00
08/01 9730 1,600.00
08/04 9731 750.00
Date Check# Amount
08/10 9732 29.11
08/09 9733 1,307.87
08/11 9734 276.20
08/22 9735 2,925.00
08/31 9736 3,900.00
08/31 9738 * 2,000.00
* Indicates a break in the Check number order.
Account #139602 - DDA
Page 3 of 4
8/8/2011 0 $1,000.00
8/23/2011 9677 $2,500.00
8/18/2011 9724 $364.00
8/9/2011 9728 $975.00
8/1/2011 9729 $2,000.00
8/1/2011 9730 $1,600.00
8/4/2011 9731 $750.00
8/10/2011 9732 $29.11
8/9/2011 9733 $1,307.87
8/11/2011 9734 $276.20
8/22/2011 9735 $2,925.00
8/31/2011 9736 $3,900.00
Account #139602 - DDA Page 4 of 4
8/31/2011 9738 $2,000.00
ICOP DIGITAL, INC. Reconciliation Detail
5:25 PM 09/21/11
0-10080 FNB Payroll Acct. 014-952-7, Period Ending 08/31/2011
Type Date Num Name Clr Amount Balance
Beginning Balance
Cleared Transactions
Checks and Payments -1 item
Check 7/31/2011 X -24.23 376.59 -24.23
Total Checks and Payments -24.23 -24.23
Total Cleared Transactions -24.23 -24.23
Cleared Balance -24.23 352.36
Register Balance as of 08/31/2011 -24.23 352.36
Ending Balance -24.23 352.36
First National
Bank of Olathe
Page: 1
***************AUTO**3-DIGIT 662 2061 0.4610 AT 0.365 9 1 211
DIGITAL SYSTEMS INC
15621 W 87TH ST PKWY STE 355
LENEXA KS 66219-1435
PERIODIC STATEMENT Date: Aug 31, 2011
Period: Aug 01, 2011 to Aug 31, 2011 (31 Days )
ACCOUNT #: DDA - 0149527 Payroll Account
Digital Systems Inc
Enclosures: 0
376.59
0.00 0.00 24.23 360.18
352.36
Beginning Balance as of 08/01/11
Deposits & Other Credits Charges & Fees Checks & Other Debits Average Balance Ending Balance as of 08/31/11
Transaction Information
Date Check# 08/11
Description
Credit Amount
Debit Amount
24.23
ACH Debit TRANSFER 11534 ICOP DIGIT