UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF VIRGINIA
____________________ DIVISION
In Re: PATHNET, INC. ) Chapter 11
)
Case Number BK-01-12265
DEBTORS )
- ----------------------------------------
MONTHLY OPERATING REPORT Calendar Month May 1, 2001 to May 31, 2001
FINANCIAL BACKGROUND INFORMATION
1. ACCOUNTING BASIS: Cash Accrual X
2. PREPARER: State the name, address, telephone number and position of
the person(s) who actually compiled the information contained in this report.
See attached
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3. NUMBER OF EMPLOYEES paid during this period: 198
4. Have there been any CHANGES IN THE NATURE OF YOUR BUSINESS since the
last reporting period? Yes No X
------------ ------------ .
If yes, explain below:
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5. Are all BUSINESS LICENSES current? Yes No X Not Applicable
6. PRE-PETITION ACCOUNTS RECEIVABLE:
Beginning Balance $ 1,577,415
--------------
Collected this Period 22,294
Ending Balance 1,555,121
7. POST-PETITION ACCOUNTS RECEIVABLE:
0-30 Days: $1,114,356 31-60 Days: $ 686,010 Over 60 Days: $ -0-
--------- --------- --------
If there are any POST-PETITION Accounts Receivable over 60 days,
provide schedule AR giving a listing of such accounts and explain the
delinquencies.
8. POST-PETITION ACCOUNTS PAYABLE:
0-30 Days: $ 537,068 31-60 Days: $ 419,384 Over 60 Days: $ -0-
--------- -------- --------
If there are any POST-PETITION Accounts Payable over 30 days, provide
Schedule AP giving a listing of such accounts and explain the delinquencies.
SEE ATTACHMENT
9. TAXES Are all taxes being paid to the proper taxing authorities when
due? Yes No X , On the attached
-------- -------
IRS Form 6123 report all tax deposits made with any financial institution for
federal employment taxes. Be sure the form is complete and signed by an
authorized employee of the receiving institution or taxing authority. Attach to
this report a completed Form 6123 for each deposit made during the reporting
period. Also attach copies of the monthly sales tax report, payroll tax report
and unemployment tax report with evidence of payment of BOTH FEDERAL AND STATE
TAXES.
10. ESCROW ACCOUNTS. Are you utilizing your tax account only for deposits
and payment of payroll and sales taxes? Yes No . N/A
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If no, explain:
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11. Are all BOOKS AND RECORDS of the debtor(s) being maintained monthly
and are all current? Yes X No .
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Explain:
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12. INSURANCE EXPIRATION STATEMENT. Policy expiration dates are:
Auto and Truck Liability May 26, 2002
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Fire Workers Comp May 26, 2002
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13. ACTIONS OF THE DEBTOR. During the last month, did the debtor:
(A) Fail to defend or not oppose any action seeking to dispossess
the debtor from control or custody of any asset of the estate?
Yes X No .
-------- --------
Explain:
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(B) Maintain such stock, inventory, raw materials, insurance,
employees and other resources as are necessary to preserve and maintain
the going-concern value of the assets of the debtor? Yes X No .
------- -----
Explain:
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14. TRANSFER OR SALE OF PROPERTY. Did the debtor or any person with
control over any of the debtor's assets transfer, convey or abandon any of the
debtor's assets to another party during the period of this report other than as
set forth herein (including sales by creditors)?
Yes No X . Explain:
--------------- ------------ ---------------------------------
15. PAYMENTS TO SECURED CREDITORS during reporting period:
(Attach additional sheets, if necessary)
- ------------------ ---------------------- --------------- ----------------- ------------------------
Frequency of Payments Amount of Each Next Payment Due
Creditor per Contract (mo, qtr) Payment Post-Petition
Payments Not Made
- ------------------ ---------------------- --------------- ----------------- ------------- ----------
No. Amt.
-0-
- ------------------ ---------------------- --------------- ----------------- ------------- ----------
16. PAYMENTS TO PROFESSIONALS (Attorneys, Accountants, Real Estate Agents,
Auctioneers, Appraisers, etc.) during reporting period:
(Attach additional sheets, if necessary.)
- ------------------------ ------------------------- --------------------------
Professional Service Amount
- ------------------------ ------------------------- --------------------------
-0-
- ------------------------ ------------------------- --------------------------
17. QUARTERLY U.S. TRUSTEE FEES paid during reporting period: $-0-
18. VERIFICATION: I declare under penalty of perjury that the
information contained in this monthly operating report (including attached
schedules) is true and correct to the best of my knowledge, information and
belief.
Dated: 6-20-2001 DEBTOR-IN-POSSESSION
-----------------------------------
Name/Title James M. Craig By /S/ James M. Craig
-------------------------------- -------------------------
Address: 11720 Sunrise Valley Drive
------------------------------------
Reston, Virginia Phone 703-390-1000
- -------------------------------------------- ------------------------
# 2 PREPARER
Jeff Clincy
Staff Accountant/Fixed asset Accountant
11720 Sunrise Valley Drive
Reston, VA 20191
(703) 390-1000
Najma Khan
Director, Taxation and External Reporting
11720 Sunrise Valley Drive
Reston, VA 20191
(703) 390-1000
Michael Kinsley
Tax Supervisor
11720 Sunrise Valley Drive
Reston, VA 20191
(703) 390-1000
Todd Morgan
Staff Accountant/Inter-Company Analyst
11720 Sunrise Valley Drive
Reston, VA 20191
(703) 390-1000
EASTERN DISTRICT OF VIRGINIA
In re Pathnet Inc. CASE NO. BK-01-12265
REPORTING PERIOD: MAY 31, 2001
MONTHLY OPERATING REPORT
File with Court and submit copy to United States Trustee within 20 days after end of month
Submit copy of report to any official committee appointed in the case.
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DOCUMENT EXPLANATION
REQUIRED DOCUMENTS FORM NO. ATTACHED ATTACHED
Schedule of Cash Receipts and Disbursements MOR-1 yes
Bank Reconciliation (or copies of debtor's bank reconciliation MOR-1 (CON'T) yes
Copies of bank statements yes
Cash disbursements journals yes
Statement of Operations MOR-2 yes
Balance Sheet MOR-3 yes
Status of Postpetition Taxes MOR-4 yes
Copies of IRS Form 6123 or payment receipt n/a
Copies of tax returns filed during reporting period n/a
Summary of Unpaid Postpetition Debts MOR-4 yes
Listing of aged accounts payable yes
Accounts Receivable Reconciliation and Aging MOR-5 yes
Debtor Questionnaire MOR-5 yes
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I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents
are true and correct to the best of my knowledge and belief.
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Signature of Debtor Date
- ---------------------------------------
Signature of Joint Debtor Date
/s/ James M. Craig
- ---------------------------------------
Signature of Authorized Individual* Date 06-20-01
James M. Craig
- --------------------------------------- Chief Financial Officer
Printed Name of Authorized Individual Title of Authorized Individual
*Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor
is a partnership; a manager or member if debtor is a limited liability company.
FORM MOR
(9/99)
IN RE PATHNET INC. CASE NO. BK-01-12265
Debtor REPORTING PERIOD: MAY 31, 2001
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
Amounts reported should be per the debtor's books, not the bank statement. The beginning cash should be the ending cash from the prior month or, if this is the
first report, the amount should be the balance on the date the petition was filed. The amounts reported in the "CURRENT MONTH - ACTUAL" column must
equal the sum of the four bank account columns. The amounts reported in the "PROJECTED" columns should be taken from the SMALL BUSINESS INITIAL
REPORT (FORM IR-1) . Attach copies of the bank statements and the cash disbursements journal. The total disbursements listed in the disbursements journal
must equal the total disbursements reported on this page. A bank reconciliation must be attached for each account. [See MOR-1 (CON'T)]
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BANK ACCOUNTS CURRENT MONTH CUMULATIVE FILING TO DATE
OPER. PAYROLL MEDICAL OTHER ACTUAL PROJECTED ACTUAL PROJECTED*
CASH BEGINNING OF MONTH 423,952 316,666 -65,594 6,573,253 7,248,277 6,532,524 7,956,042 7,956,042
---------- --------- -------- ----------- ----------- --------- ----------- ----------
RECEIPTS
CASH SALES 0
ACCOUNTS RECEIVABLE 90,063 90,063 352,986 800,846 631,986
LOANS AND ADVANCES 0 0 0
SALE OF ASSETS 0 0 0
OTHER DEPOSITS 45,593 623 46,217 2,874,000 216,132 2,874,000
TRANSFERS (Wires) 3,000,000 1,460,544 82,000 4,542,544 5,429,822 0
OTH (TRNSFR FROM MED. ESCROW) 1,921 1,921 41,659 0
VOIDS 9,161 164 9,325 259,293 0
INTERCOMPANY SERVICES 1,402,293 1,402,293 2,010,000 1,402,293 2,643,114
INTEREST INCOME 2,740 26,358 29,098 90,707 29,098 91,235
---------- --------- -------- ----------- ----------- --------- ----------- ----------
TOTAL RECEIPTS 4,549,850 1,460,544 84,703 26,358 6,121,461 5,327,693 8,179,143 6,240,335
---------- --------- -------- ----------- ----------- --------- ----------- ----------
DISBURSEMENTS
NET PAYROLL -962,254 -962,254 -1,020,500 -1,918,043 -2,041,000
PAYROLL TAXES -473,646 -473,646 -549,500 -1,002,615 -1,099,000
SALES, USE, & OTHER TAXES 0 0 0
INVENTORY PURCHASES 0 0 0
SECURED/ RENTAL/ LEASES -111,746 -111,746 -467,000 -111,746 -700,500
MEDICAL CLAIM PAYMENTS 0 -82,140 0
ADMINISTRATIVE -278,967 -49,639 -73,502 -402,108 -671,606 -658,263 -1,053,266
SELLING 0 0 0
OTHER -92,756 -530 -93,286 0 -93,388 0
INTERCOMPANY SERVICES 0 0 0
CAPITAL EXPENDITURES 0 -15,500 0 -16,500
OWNER DRAW ** 0 0 0
TRANSFERS (WIRE) -1,542,544 -3,000,000 -4,542,544 -5,484,837 0
OTHER - TRANSFER TO POI -527,437 -527,437 -527,437 0
CONTINGENCY 0 -250,000 0 -400,000
PROFESSIONAL FEES 0 -375,000 0 -375,000
EMPLOYEE RETENTION PLAN 0 -875,000 0 -875,000
U.S. TRUSTEE QUARTERLY FEES 0 0 0
COURT COSTS 0 0
---------- --------- -------- ----------- ----------- --------- ----------- ----------
TOTAL DISBURSEMENTS -2,553,450 -1,485,539 -73,502 -3,000,530 -7,113,021 -4,224,106 -9,878,469 -6,560,266
---------- --------- -------- ----------- ----------- --------- ----------- ----------
NET CASH FLOW 1,996,400 -24,995 11,206 -2,974,172 -991,561 1,103,587 -1,699,327 -319,931
(RECEIPTS LESS DISBURSEMENTS)
---------- --------- -------- ----------- ----------- --------- ----------- ----------
CASH - END OF MONTH 2,420,352 291,671 -54,388 3,599,081 6,256,715 7,636,111 6,256,715 7,636,111
---------- --------- -------- ----------- ----------- --------- ----------- ----------
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* THE BEGINNING PROJECTED CASH BALANCE AT THE FILING DATE IS THE ACTUAL CASH BALANCE AT APRIL 2, 2001. PROJECTED CASH INFLOWS
AND OUTFLOWS ARE BASED ON THE CASH FORECAST PROVIDED TO THE TRUSTEE WITH THE INITIAL MONTHLY OPERATING REPORT.
** COMPENSATION TO SOLE PROPRIETORS FOR SERVICES RENDERED TO BANKRUPTCY ESTATE
THE FOLLOWING SECTION MUST BE COMPLETED
- --------------------------------------------------------------------------------------------------------------------------------
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)
TOTAL DISBURSEMENTS 7,113,021
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS $
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts) $
----------
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES 7,113,021
----------
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FORM MOR-1
(9/99)
In re Pathnet Inc. Case No. BK-01-12665
Debtor Reporting Period: MAY 31, 2001
BANK RECONCILIATIONS
CONTINUATION SHEET FOR MOR-1
A bank reconciliation must be included for each bank account. The debtor's bank reconciliation may be substituted for this page.
- --------------------------------------------------------------------------------------------------------------------------------
Operating Payroll Medical Other
BALANCE PER BOOKS
BANK BALANCE See Attachment
(+) DEPOSITS IN TRANSIT (ATTACH LIST)
(-) OUTSTANDING CHECKS (ATTACH LIST)
OTHER (ATTACH EXPLANATION)
ADJUSTED BANK BALANCE *
* Adjusted bank balance must equal
balance per books
DEPOSITS IN TRANSIT Date Amount Date Amount Date Amount Date Amount
CHECKS OUTSTANDING Ck. # Amount Ch. # Amount Ck. # Amount Ck. # Amount
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OTHER
FORM MOR-1 (CON'T)
(9/99)
In re Pathnet Inc. Case No. BK-01-12265
Debtor Reporting Period.: MAY 31, 2001
STATEMENT OF OPERATIONS
(Income Statement)
The Statement of Operations is to be prepared on an accrual basis. The accrual basis of accounting recognizes revenue when it is
realized and expenses when they are incurred, regardless of when cash is actually received or paid.
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CUMULATIVE
REVENUES MONTH FILING TO DATE
Gross Revenues 743,933 1,744,837
Less: Returns and Allowances 0 0
---------- -----------
Net Revenue $ 743,933 $1,744,837
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COST OF GOODS SOLD
Beginning Inventory 0 0
Add: Purchases 0 0
Add: Cost of Labor 372,889 650,333
Add: Other Costs (attach schedule) 664,620 981,825
Less: Ending Inventory 0 0
---------- -----------
Cost of Goods Sold 1,037,509 1,632,158
---------- -----------
Gross Profit $(293,576) $112,679
OPERATING EXPENSES
Advertising
Auto and Truck Expense
Bad Debts
Contributions
Employee Benefits Programs 260,498 377,104
Insider Compensation* 108,335 216,668
Insurance 57,142 91,424
Management Fees/Bonuses
Office Expense 16,502 29,619
Pension & Profit-Sharing Plans
Repairs and Maintenance 566 2,754
Rent and Lease Expense 139,286 292,392
Salaries/Commissions/Fees 992,084 2,018,385
Supplies 3,476 4,437
Taxes - Payroll 69,265 152,445
Taxes - Real Estate 200,000 400,000
Taxes - Other 60,527 61,912
Travel and Entertainment 47,924 72,099
Utilities 61,178 99,087
Other (attach schedule) -1,655,078 -2,377,524
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Total Operating Expenses Before Depreciation 361,704 1,440,803
Depreciation/Depletion/Amortization -282,475 -564,950
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Net Profit (Loss) Before Other Income & Expenses ($937,755) ($1,893,072)
OTHER INCOME AND EXPENSES
Other Income (attach schedule) 63,891 381,488
Interest Expense -197,133 -394,266
Other Expense (attach schedule)
---------- -----------
Net Profit (Loss) Before Reorganization Items ($1,070,997) $1,905,850)
REORGANIZATION ITEMS
Professional Fees 1,000,000 2,000,000
U. S. Trustee Quarterly Fees
Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet)
Gain (Loss) from Sale of Equipment
Other Reorganization Expenses (attach schedule)
---------- -----------
Total Reorganization Expenses 1,000,000 2,000,000
Income Taxes
---------- -----------
Net Profit (Loss) ($2,070,997) ($3,905,850)
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*"Insider" is defined in 11 U.S.C. Section 101(31).
FORM MOR-2
(9/99)
In re Pathnet Inc._ Case No. BK-01-12265
Debtor Reporting Period: MAY 31, 2001
- --------------------------------------------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS - CONTINUATION SHEET
CUMULATIVE
BREAKDOWN OF "OTHER" CATEGORY MONTH FILING TO DATE
OTHER COSTS
Lease expense (space, tower) & LEC Access charges 340,955 527,457
Maintenance 125,539 214,117
Utility 290,931 291,550
Warehousing costs 2,772 5,880
Intercompany allocations -171,528 -298,179
Other Costs 75,951 241,000
--------- ---------
TOTAL 664,620 981,825
--------- ---------
OTHER OPERATIONAL EXPENSES
Cheap Stock Amortization 0 170,402
Intercompany Allocation for Services preformed for Pathnet Operating -1,707,310 -2,670,745
Legal Expense/Accounting 0 -4,687
Misc Expense 1,289 1,738
Temporary Services 7,773 -11,926
Bank Charges 658 -14,468
PPE Reserve 40,000 40,000
Dues and Subscriptions 2,512 2,512
--------- ---------
TOTAL -1,655,078 -2,447,174
--------- ---------
OTHER INCOME
Interest Income Texaco Escrow 1,149 1,310
Interest Income BN Escrow 11,466 13,077
Interest Income Bank of NY 709
Interest Income SunTrust investment account 45,973 54,275
Interest Income Wilmington Trust 5,041 5,041
Void Checks - other income 248,226
Sale of Computer 263 263
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TOTAL 63,891 381,488
--------- ---------
OTHER EXPENSES
OTHER REORGANIZATION EXPENSES
- --------------------------------------------------------------------------------------------------------------------------------
REORGANIZATION ITEMS - INTEREST EARNED ON ACCUMULATED CASH FROM CHAPTER 11:
Interest earned on cash accumulated during the chapter 11 case, which would not have been earned but for the
bankruptcy proceeding, should be reported as a reorganization item.
FORM MOR-2 (CON'T)
(9/99)
In re Pathnet Inc. Case No. BK-01-12265
Debtor Reporting Period: MAY 31, 2001
BALANCE SHEET
The Balance Sheet is to be completed on an accrual basis only. Pre-petition liabilities must be classified separately from postpetition obligations.
- --------------------------------------------------------------------------------------------------------------------------------
BOOK VALUE AT END OF BOOK VALUE ON
ASSETS CURRENT REPORTING MONTH PETITION DATE
CURRENT ASSETS
Unrestricted Cash and Equivalents 6,256,715 7,956,042
Restricted Cash and Cash Equivalents ** 10,944,900 10,895,450
Accounts Receivable (Net) 3,221,488 1,845,880
Notes Receivable
Inventories
Prepaid Expenses 581,483 649,520
Professional Retainers 600,000 600,000
Other Current Assets (attach schedule) 119,713 104,743
------------- ------------
TOTAL CURRENT ASSETS 21,724,299 22,051,635
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PROPERTY AND EQUIPMENT
Real Property and Improvements 15,446,446 15,739,608
Machinery and Equipment
Furniture, Fixtures and Office Equipment 7,648,548 7,634,119
Leasehold Improvements 993,290 993,290
Vehicles
Less Accumulated Depreciation -4,853,065 -4,288,116
------------- ------------
TOTAL PROPERTY & EQUIPMENT 19,235,219 20,078,901
------------- ------------
OTHER ASSETS
Loans to Insiders* 131,303,586 130,182,166
Other Assets (attach schedule) 14,313,336 14,607,731
------------- ------------
TOTAL OTHER ASSETS 145,616,922 144,789,897
------------- ------------
TOTAL ASSETS 186,576,440 186,920,433
============= ===========
BOOK VALUE AT END OF BOOK VALUE ON
LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE
LIABILITIES NOT SUBJECT TO COMPROMISE (POSTPETITION)
Accounts Payable 914,925
Taxes Payable (refer to FORM MOR-4) 452,359
Wages Payable
Notes Payable
Rent / Leases - Building/Equipment 41,527
Secured Debt / Adequate Protection Payments
Professional Fees 2,000,000
Amounts Due to Insiders*
Other Postpetition Liabilities (attach schedule) 103,896
------------- ------------
TOTAL POSTPETITION LIABILITIES 3,512,707
LIABILITIES SUBJECT TO COMPROMISE (PRE-PETITION)
Secured Debt
Priority Debt
Unsecured Debt 387,868,335 387,652,191
Deferred Expense 653,990 632,984
Loans from insiders 7,983,195 7,983,195
------------- ------------
TOTAL PRE-PETITION LIABILITIES 396,317,520 396,268,370
------------- ------------
TOTAL LIABILITIES 398,830,227 396,268,370
OWNER EQUITY
Capital Stock 188,423 188,423
Additional Paid-In Capital 42,076,261 42,076,261
Partners' Capital Account
Owner's Equity Account
Retained Earnings - Pre-Petition -251,612,621 -251,612,621
Retained Earnings - Postpetition -3,905,850
Adjustments to Owner Equity (attach schedule)
Postpetition Contributions (Distributions) (Draws) (attach schedule)
------------- ------------
NET OWNER EQUITY -213,253,787 -209,347,937
------------- ------------
TOTAL LIABILITIES AND OWNERS' EQUITY 186,576,440 186,920,433
============= ============
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. FORM MOR-3
* "Insider" is defined in 11 U.S.C. Section 101(31). (9/99)
** Restricted Cash: cash that is restricted for a specific use and not
available to fund operations. Typically, restricted cash is segregated into
a separate account, such as an escrow account.
In re Pathnet Inc. Case No. BK-01-12265
Debtor Reporting Period: MAY 31, 2001
BALANCE SHEET - continuation sheet
- --------------------------------------------------------------------------------------------------------------------------------
BOOK VALUE AT END OF BOOK VALUE ON
ASSETS CURRENT REPORTING MONTH PETITION DATE
Other Current Assets
Interest Receivable Suntrust Investment account 20,043 5,660
Employee Advances 2,078 3,377
Deposits 95,530 94,550
Other Misc 0 0
Petty Cash 2,062 1,157
----------- ------------
Total 119,713 104,743
----------- ------------
Other Assets
Deferred Financing Costs 13,624,131 13,950,146
Deferred Income- KN 689,205 657,585
----------- ------------
Total 14,313,336 14,607,731
----------- ------------
BOOK VALUE AT END OF BOOK VALUE ON
LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE
Other Postpetition Liabilities
PSI Net Deposit 25,000 0
Flexible spending account 13,868
401K deferred compensation 43,918
State fees 21,110
----------- ------------
Total 103,896 0
----------- ------------
Adjustments to Owner Equity
Postpetition Contributions (Distributions) (Draws)
- ----------------------------------------------------------------------------------------------------------------
FORM MOR-3 (CON'T) (9/99)
FORM MOR-3(CONT)
((9/99)
In re Pathnet Inc. Case No. BK-01-12265
Debtor Reporting Period: May 31, 2001
STATUS OF POSTPETITION TAXES
The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero.
Attach photocopies of IRS Form 6123 or payment receipt to verify payment or deposit of federal payroll taxes.
Attach photocopies of any tax returns filed during the reporting period.
- --------------------------------------------------------------------------------------------------------------------------------
BEGINNING AMOUNT ENDING
TAX WITHHELD OR AMOUNT DATE CHECK NO. TAX
LIABILITY ACCRUED PAID PAID OR EFT LIABILITY
- --------------------------------------------------------------------------------------------------------------------------------
Federal
Withholding - 238,635 (238,635) 5/15&5/31 eft 0
FICA-Employee - 93,990 (93,990) 5/15&5/31 eft 0
FICA-Employer - 93,989 (93,989) 5/15&5/31 eft 0
Unemployment - 11 (11) 5/15&5/31 eft 0
Income
Other:_________________
-------- --------- ---------- ---------
Total Federal Taxes 426,625 (480,613) See Attach
-------- --------- ---------- ---------
STATE AND LOCAL
Withholding - 46,882 (46,882) 5/15&5/31 eft
Sales 11,985 6,458 (2,198) See Attach 16,245
Excise
Unemployment - 137 5/15&5/31 eft
Real Property
Personal Property 200,000 200,070 (24,041) See Attach 376,029
Other: Income and Franchise taxes 60,156 (71) See Attach 60,085
-------- --------- ---------- ---------
Total State and Local 253,547 (73,192)
-------- --------- ---------- ---------
TOTAL TAXES 680,172 (499,817) 452,359
-------- --------- ---------- ---------
- --------------------------------------------------------------------------------------------------------------------------------
SUMMARY OF UNPAID POSTPETITION DEBTS
Attach aged listing of accounts payable.
- --------------------------------------------------------------------------------------------------------------------------------
NUMBER OF DAYS PAST DUE
Current 0-30 31-60 61-90 Over 90 Total
- --------------------------------------------------------------------------------------------------------------------------------
Accounts Payable 511,180 403,745 914,925
Wages Payable 0
Taxes Payable 216,245 236,114 452,359
Rent/Leases-Building 25,888 15,639 41,527 16,248
Rent/Leases-Equipment 0
Secured Debt/Adequate Protection Payments 0
Professional Fees 1,000,000 1,000,000 2,000,000
Amounts Due to Insiders* 0
Other:__________________________ 78,896 25,000 103,896
Other:__________________________ 0
---------- ---------- ---------- ----------- ----------- ---------
TOTAL POSTPETITION DEBTS 1,832,208 1,680,498 0 0 0 3,512,707
---------- ---------- ---------- ----------- ----------- ---------
- --------------------------------------------------------------------------------------------------------------------------------
EXPLAIN HOW AND WHEN THE DEBTOR INTENDS TO PAY ANY PAST-DUE POSTPETITION DEBTS.
*"Insider" is defined in 11 U.S.C. Section 101(31). FORM MOR-4
(9/99)
In re Pathnet Inc. Case No. BK-01-12265
Debtor Reporting Period: May 31, 2001_______
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
- --------------------------------------------------------------------------------------------------------------------------------
ACCOUNTS RECEIVABLE RECONCILIATION AMOUNT
Total Accounts Receivable at the beginning of the reporting period $2,379,256
+ Amounts billed during the period $1,066,295
- - Amounts collected during the period $90,063
----------
Total Accounts Receivable at the end of the reporting period $3,355,488
----------
ACCOUNTS RECEIVABLE AGING AMOUNT
0 - 30 days old $1,114,356
31 - 60 days old $686,010
61 - 90 days old $274,749
91+ days old $1,280,372
----------
Total Accounts Receivable $3,355,488
Amount considered uncollectible (Bad Debt) $134,000
----------
Accounts Receivable (Net) $3,221,488
----------
- --------------------------------------------------------------------------------------------------------------------------------
DEBTOR QUESTIONNAIRE
- --------------------------------------------------------------------------------------------------------------------------------
MUST BE COMPLETED EACH MONTH YES NO
1. Have any assets been sold or transferred outside the normal course of business
this reporting period? If yes, provide an explanation below. X
2. Have any funds been disbursed from any account other than a debtor in possession
account this reporting period? If yes, provide an explanation below. X
3. Have all postpetition tax returns been timely filed? If no, provide an explanation
below. X
4. Are workers compensation, general liability and other necessary insurance
coverages in effect? If no, provide an explanation below. X
- --------------------------------------------------------------------------------------------------------------------------------
A number of tax filings are pending, waiting for accounting information to be made available or checks to be released.
FORM MOR-5
(9/99)
