Digital Systems (ICDG) 8-K Regulation FD Disclosure

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
DIGITAL SYSTEMS, INC.	)	Chapter 11
Debtor.	)
	)
	)

DEBTOR'S STANDARD MONTHLY OPERATING REPORT (BUSINESS)

FOR THE PERIOD

FROM January 1, 2012  TO January 31, 2012

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 REPORTING PERIOD BEGINNING January 1, 2012 and ending January 31, 2012

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		$ 149,701.97	(a)	$24,201.83	(b)
2.  RECEIPTS:
	A. Cash Sales			-
	Minus:  Cash Refunds			-
	Net Cash Sales			-
	B.  Accounts Receivable			207,739.09
	C.  Other Receipts (See MOR-3)			763,102.70
	(If you receive rental income,			-
	you must attach a rent roll.)
3.  TOTAL RECEIPTS (Lines 2A+2B+2C)				970,841.79
4.	TOTAL FUNDS AVAILABLE FOR OPERATIONS (Line 1 + Line 3)	$ 149,701.97		$        995,043.62
5.  DISBURSEMENTS
	A. Advertising			-
	B.  Bank Charges			1,775.00
	C.  Contract Labor	2,000.00		62,034.85
	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	224.84		1,647.33
	J.   Payroll - Net (See Attachment 4B)			167,780.49
	K.  Professional Fees (Accounting & Legal)	4,597.68		195,272.74
	L.   Rent	750.00		53,375.66
	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)			6,630.52
	R.  Telephone	91.54		9,220.91
	S.   Travel & Entertainment			4,185.62
	Y.  U.S. Trustee Quarterly Fees			5,525.00
	U.  Utilities	263.12		7,098.19
	V.  Vehicle Expenses			-
	W.  Other Operating Expenses (See MOR-3)			25,896.85
6.  TOTAL DISBURSEMENTS (Sum of 5A thru W)		7,927.18		853,268.83
7.  ENDING BALANCE (Line 4 Minus Line 6)		$    141,774.79	(c)	$           141,774.79	(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 31stday of January, 2012. /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     $ 0.00                     $763,102.70                      

“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

FOR THE REPORTING PERIOD BEGINNING January 1, 2012 and ending January  31, 2012

  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                                                                   $                               171,144.17 (a)

    PLUS: Current Month New Billings

    MINUS: Collection During the Month                                              $                                                    (b)

                   PLUS/MINUS: Adjustments or Writeoffs                      $                                                    *

End of Month Balance                                                                             $                                171,144.17 (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

TOTAL 0.00 0.00 (66.96) (199,292.32) 370,503.85 171,144.17

For any receivables in the “Over 90 Days” category, please provide the following:

Receivable

      Customer        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

FOR THE REPORTING PERIOD BEGINNING January 1, 2012 and ending January 31, 2012

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                          Days

 Incurred 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).

Secured Creditor/ Lessor	Date Payment Due This Month	Amount Paid This Month		Number of Post Petition Payments Delinquent	Total Amount of Post Petition Payments 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

FOR THE REPORTING PERIOD BEGINNING January 1, 2012 and ending January 31, 2012

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%*

* 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

FOR THE REPORTING PERIOD BEGINNING January 1, 2012 and ending January 31, 2012

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                                                             $                          141,739.55

Plus Total Amount of Outstanding Deposits                                              $                                                                               

Minus Total Amount of Outstanding Checks and other debits                $                             869.09 *

Minus Service Charges                                                                                    $

Ending Balance per Check Register                                                               $                          140,870.46**(a)

*Debit cards are used by

**If Closing Balance is negative, provide explanation:

4C:   TAXES PAID-OTHER

Amount                                                      Payee                                                                 Purpose                     

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.

DATE	CHECK  NUMBER	PAYEE	PURPOSE	AMOUNT
		SEE ATTACHED
				��
TOTAL				$

  MOR-9

ATTACHMENT 4B

MONTHLY SUMMARY OF BANK ACTIVITY - PAYROLL ACCOUNT

Name of Debtor: Digital Systems, Inc.                                                                     Case Number:  11-20140-11-rdb

FOR THE REPORTING PERIOD BEGINNING January 1, 2012 and ending January 31, 2012

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        ACCOUNT CLOSED

Ending Balance per Bank Statement                                                                    $___________   0.00*

   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                                                                     $                            0.00**(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

                                                                                         SEE ATTACHED                                                                                       

  TOTAL $

  MOR-11

ATTACHMENT 4C

MONTHLY SUMMARY OF BANK ACTIVITY - TAX ACCOUNT

Name of Debtor: Digital Systems, Inc.                                                                     Case Number:  11-20140-11-rdb

FOR THE REPORTING PERIOD BEGINNING January 1, 2012 and ending January 31, 2012

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.

Instrument	Face Value	Purchase Price	Date of Purchase	Current Market Value
TOTAL					(a)

PETTY CASH REPORT

The following Petty Cash Drawers/Accounts are maintained:                                                                                                

Location of Box/Account	(Column 2)  Maximum Amount of Cash in Drawer/Acct.	(Column 3) Amount of Petty Cash On Hand At End of Month		(Column 4) Difference between Column 2) and  (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

FOR THE REPORTING PERIOD BEGINNING January 1, 2012 and ending January 31, 2012

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 Taxing Authority	Date Payment Due	Description	Amount	Date Last Tax Return Filed	Tax Return 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

FOR THE REPORTING PERIOD BEGINNING January 1, 2012 and ending January 31, 2012

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

David Owen continues to provide services as the Debtor winds down at the hourly rate of $100.00.  These services will not exceed $2,000 per month.

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.

MOR-17 

DIGITAL SYSTEMS BALANCE SHEET 1.31.12							31-Jan-12
ASSETS
	Current Assets
		Checking/Savings
			Cash Accounts
				0-10070 · FNB Olathe Checking 013-960-2			140,972.00
			Total Cash Accounts				140,972.00
			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
		Total Checking/Savings					140,972.00
		Accounts Receivable
			Accounts Receivable
				0-11000 · Accounts Receivable - Trade			247,880.90
				0-11010 · Accounts Receivable - Dealers			23,719.75
				0-11100 · Allowance for Doubtful Accounts			-100,456.68
			Total Accounts Receivable				171,143.97
		Total Accounts Receivable					171,143.97
		Other Current Assets
			Prepaid Expenses
				0-13000 · Prepaid Expenses			7,650.00
				0-13010 · Prepaid Insurance			-29
			Total Prepaid Expenses				7,621.00
			Other Current Assets
				0-14000 · Deposits			-1,000.00
			Total Other Current Assets				-1,000.00
		Total Other Current Assets					6,621.00
	Total Current Assets						318,736.97
TOTAL ASSETS							318,736.97
LIABILITIES & EQUITY
	Liabilities
		Current Liabilities
			Accounts Payable
				Accounts Payable
					0-20000 · Accounts Payable		1,190,520.49
					0-20100 · Accounts Payable - Chpt 11		4,941.02
				Total Accounts Payable			1,195,461.51
			Total Accounts Payable				1,195,461.51
			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					1,277,771.49
	Total Liabilities						1,277,771.49
	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					-39,757,970.20
		Net Income					-9,475.64
	Total Equity						-959,034.52
TOTAL LIABILITIES & EQUITY							318,736.97

DIGITAL SYSTEMS, INC PROFIT & LOSS 1.31.12							12-Jan
	Ordinary Income/Expense
		Expense
			0-60400 · Professional & Contract Service
				0-60410 · Consulting
					2-60410 · Consulting - Admin	2,000.00
				Total 0-60410 · Consulting		2,000.00
				Legal Fees
					2-60430 · Legal Expense	4,587.68
				Total Legal Fees		4,587.68
				0-60470 · Outside Services
					2-60470 · Outside Services - Admin	1,000.00
				Total 0-60470 · Outside Services		1,000.00
				0-60400 · Professional & Contract Service - Other		650
			Total 0-60400 · Professional & Contract Service			8,237.68
			0-60500 · Facilities & Maintenance Costs
				2-60550 · Rent Building		750
				2-60590 · Utility Expense		263.12
			Total 0-60500 · Facilities & Maintenance Costs			1,013.12
			0-61600 · Office Supplies and Expenses
				0-61620 · Office Supplies
					2-61620 · Office Supplies - Admin	32.84
				Total 0-61620 · Office Supplies		32.84
				0-61600 · Office Supplies and Expenses - Other		192
			Total 0-61600 · Office Supplies and Expenses			224.84
		Total Expense				9,475.64
	Net Ordinary Income					-9,475.64
Net Income						-9,475.64

 3:22 PM

02/14/12

ICOP DIGITAL, INC.
Reconciliation Summary
0-10070 - FNB Olathe Checking 013-960-2, Period Ending 01/31/2012
	Jan 31,12
Beginning Balance		150,666.73
Cleared Transactions
Checks and Payments - 9 items		-8,927.18
Total Cleared Transactions		-8,927.18
Cleared Balance		141,739.55
Uncleared Transactions
Checks and Payments - 4 items		-869.09
Total Uncleared Transactions		-869.09
Register Balance as of 01/31/2012		140,870.46
New Transactions
Checks and Payments - 2 items		-2,750.00
Total New Transactions		-2,750.00
Ending Balance		138,120.46

 

MEMBER FDIC

 

STATEMENT DATE

01/31/12

ACCOUNT NUMBER

5900139602

014890 0.6500 AT 0.374    TR00052

£ DIGITAL SYSTEMS INC S DEBTOR IN POSSESSION OPERATING ACCOUNT 15621 W 87TH ST PKWY STE 355 LENEXA KS 66219-1435

7         CYCLE-030 *** CHECKING 1 COMMERCIAL DDA KC

PREVIOUS STATEMENT BALANCE AS OF 12/31/11     ��                                                                                                                150,666.73

PLUS 0 DEPOSITS AND OTHER CREDITS                                                                                                             .00

LESS 9 CHECKS AND OTHER DEBITS                                                                                                             8,927.18

CURRENT STATEMENT BALANCE AS OF 01/31/12                                                                                                                      141,739.55

NUMBER OF DAYS IN THIS STATEMENT PERIOD 31

 *** CHECK TRANSACTIONS ***

SERIAL DATE AMOUNT SERIAL DATE                                                                                                                           AMOUNT

102001/09 750.00 1024 01/19                                                                                                            76.58

102101/06 2,000.00 1025 01/18                                                                                                           192.00

102201/12 4,597.68 1026 01/19                                                                                                           186.54

01/18           32.84

1 BALANCE BY DATE *** 12/31 150,666.73 01/05 150,575.19 01/06 148,575.19 01/09 147,825.19 01/12 143,227.51 01/18 143,002.67 01/19 142,739.55 01/24 141,739.55

IF YOU HAVE QUESTIONS CONCERNING THIS STATEMENT, PLEASE CALL OUR CUSTOMER SERVICE CENTER AT (800)438-0378. THANK YOU FOR ALLOWING ENTERPRISE TO SERVE YOUR BANKING NEEDS.

MEMBER FDIC

1025                   01/18/12                        $192.00

1 BALANCE BY DATE *** 12/31 150,666.73 01/05 150,575.19 01/06 148,575.19 01/09 147,825.19 01/12 143,227.51 01/18 143,002.67 01/19 142,739.55 01/24 141,739.55

IF YOU HAVE QUESTIONS CONCERNING THIS STATEMENT, PLEASE CALL OUR CUSTOMER SERVICE CENTER AT (800)438-0378. THANK YOU FOR ALLOWING ENTERPRISE TO SERVE YOUR BANKING NEEDS.

 

Account:5900139602

Enterprise Bank & Trust

Period 1/1/2012 To 1/31/2012  1020 01/09/12 $750.00 1026 01/19/12 $186.54 1021 01/06/12 $2000.00 1022 01/12/12 $4597.68 1023 01/18/12 $32.84 1024 01/19/12 $76.58 1025 01/18/12 $192.00