Case No. 10-12302 PJW
Reporting Period: February 1 through February 28, 2011
Capital Growth Systems, Inc.
Consolidating Statement of Operations
for the month of February 2011
| | | Consolidated Total | |
| | | | |
| INCOME STATEMENT | | | |
| | | | |
| Revenues | | $ | 4,433,336 | |
| Cost of Revenues | | $ | 3,333,529 | |
| Gross Margin | | $ | 1,099,807 | |
| | | | | |
| OPERATING EXPENSES | | | | |
| | | | | |
| Compensation | | $ | 859,153 | |
| Travel and entertainment | | $ | 159,519 | |
| Occupancy | | $ | 79,087 | |
| Professional services | | $ | 112,202 | |
| Insurance | | $ | 16,791 | |
| Restructuring Expenses | | $ | 221,738 | |
| Other | | $ | 104,329 | |
| Selling, general, and administrative expenses | | $ | 1,552,819 | |
| | | | | |
| EBITDA | | $ | (453,012 | ) |
| | | | | |
| Bad Debt Expense (Recovery) | | $ | 15,000 | |
| Depreciation | | $ | 27,816 | |
| Amortization | | $ | 196,253 | |
| Operating Income (Loss) | | $ | (692,081 | ) |
| | | | | |
| Interest Expense | | $ | 974,733 | |
| Income tax expense (benefit) | | $ | 2,876 | |
| NET INCOME (LOSS) | | $ | (1,669,690 | ) |
Case No. 10-12302 PJW
Reporting Period: February 1 through February 28, 2011
Capital Growth Systems, Inc.
Consolidating Statement of Operations
for the two months ending February 28, 2011
| | | Consolidated Total | |
| | | | |
| INCOME STATEMENT | | | |
| | | | |
| Revenues | | $ | 8,740,946 | |
| Cost of Revenues | | $ | 6,565,615 | |
| Gross Margin | | $ | 2,175,331 | |
| | | | | |
| OPERATING EXPENSES | | | | |
| | | | | |
| Compensation | | $ | 1,643,719 | |
| Travel and entertainment | | $ | 251,682 | |
| Occupancy | | $ | 157,956 | |
| Professional services | | $ | 212,708 | |
| Insurance | | $ | 83,120 | |
| Restructuring Expenses | | $ | 472,128 | |
| Other | | $ | 171,209 | |
| Selling, general, and administrative expenses | | $ | 2,992,522 | |
| | | | | |
| EBITDA | | $ | (817,191 | ) |
| | | | | |
| Bad Debt Expense (Recovery) | | $ | 15,000 | |
| Depreciation | | $ | 59,249 | |
| Amortization | | $ | 392,506 | |
| Operating Income (Loss) | | $ | (1,283,946 | ) |
| | | | | |
| Interest Expense | | $ | 2,406,884 | |
| Income tax expense (benefit) | | $ | 4,540 | |
| NET INCOME (LOSS) | | $ | (3,695,370 | ) |
Case No. 10-12302 PJW
Reporting Period: February 1 through February 28, 2011
Capital Growth Systems, Inc.
Summary of All Units
For the Month Ending February 28, 2011
| | | Consolidated Total | |
| BALANCE SHEET | | | |
| | | | |
| Current Assets | | | |
| Cash | | $ | 1,458,230 | |
| Accounts Receivable, net | | $ | 5,320,277 | |
| Other Current Assets | | $ | 4,342,193 | |
| Total Current Assets | | $ | 11,120,700 | |
| | | | | |
| Fixed Assets, gross | | $ | 3,830,028 | |
| Accumulated Depreciation | | $ | (3,162,746 | ) |
| Fixed Assets, net | | $ | 667,282 | |
| | | | | |
| Other Assets | | | | |
| Other Assets | | $ | 201,888 | |
| Intangible Assets | | $ | 13,714,129 | |
| Goodwill | | $ | 1,479,649 | |
| Total Assets | | $ | 27,183,648 | |
| | | | | |
| Current Liabilities | | | | |
| Current maturities of debt | | $ | 26,296,307 | |
| Post-Petition Accounts Payable | | $ | 5,224,333 | |
| Pre-Petition Accounts Payable | | $ | 14,145,159 | |
| Post-Petition Accrued Expenses | | $ | 519,764 | |
| Pre-Petition Accrued Expenses | | $ | 5,149,559 | |
| Deferred Revenue - Short Term | | $ | 3,160,744 | |
| Total Current Liabilities | | $ | 54,495,866 | |
| | | | | |
| Long-term Liabilities | | | | |
| Debt | | $ | 10,473,276 | |
| Taxes | | $ | 67,000 | |
| Total Long-term Liabilities | | $ | 10,540,276 | |
| Total Liabilities | | $ | 65,036,142 | |
| | | | | |
| Shareholders' Equity | | | | |
| Common stock | | $ | 17,015 | |
| Additional Paid in Capital | | $ | 91,531,086 | |
| Retained Earnings, beginning of year | | $ | (125,396,649 | ) |
| Cumulative (gain) loss on currency translation | | $ | (308,576 | ) |
| Current Year Retained Earnings Inc/Loss | | $ | (3,695,370 | ) |
| Total Equity | | $ | (37,852,494 | ) |
| | | | | |
| Total Liabilities and Shareholders' Equity | | $ | 27,183,648 | |
Case No. 10-12302 PJW
Reporting Period: February 1 through February 28, 2011
Capital Growth Systems, Inc.
Consolidated AP Aging Report (post-petition)
As of 2/28/2011
| | | Current | | | | 1-30 | | | | 31-60 | | | | 61-90 | | | Over 90 | | | Total | |
| Total Accounts Payable | | $ | 5,000 | | | $ | 909,343 | | | $ | 1,656,055 | | | $ | 667,796 | | | $ | 1,893,520 | | | $ | 5,131,715 | |
Case No. 10-12302 PJW
Reporting Period: February 1 through February 28, 2011
Capital Growth Systems, Inc.
Consolidated AR Aging Report (Gross Receivables)
As of 2/28/2011
| | | Current | | | 1-30 Days | | | 31 - 60 Days | | | | 61+ | | | Total | |
| Total Accounts Receivables | | $ | 1,778,086 | | | $ | 1,508,874 | | | $ | 192,858 | | | $ | 2,401,562 | | | $ | 5,881,379 | |
