Exhibit 99.1 UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re Katy Industries, lnc., et al. Case No. 17-11101 (KJC) Reporting Period: July 1 to July 28, 2017 MONTHLY OPERATING REPORT Document Explanation Affidavit/Supplement REQUIRED DOCUMENTS Form No. Attached Attached Attached Schedule of Cash Receipts and Disbursements MOR-1 YES Certification of Bank Account Reconciliation MOR-1a YES Schedule of Professional Fees Paid MOR-1b YES Schedule of Bank Reconciliation MOR-1c YES Statement of Operations MOR-2 YES Balance Sheet MOR-3 YES Status of Post-petition Debts and Certificate of Payroll Tax Deposits MOR-4 YES Listing of aged post-petition accounts payable MOR-4a YES Accounts Receivable Reconciliation and Aging MOR-5 YES Debtor Questionnaire MOR-5 YES This Monthly Operating Report has been prepared solely for the purpose of complying with the monthly reporting requirements applicable in theses chapter 11 cases and is in a format that the Debtors believe is acceptable to the Office of the United States Trustee. The financial information provided in this Monthly Operating Report is limited in scope and covers a limited time period. Moreover, such information is preliminary and unaudited and is not prepared in accordance with general acceptable accounting principles in the United States. 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. /s/ Robert W. Zimmer 9/12/17 Signature of Debtor Date /s/ Robert W. Zimmer 9/12/17 Signature of Joint Debtor Date /s/ Robert W. Zimmer 9/12/17 Signature of Authorized Individual* Date Robert W. Zimmer Chief Financial Officer Printed Name of Authorized Individual Title of Authorized Individual *Copies of the Bank Statements and cash disbursements journals are not included with this Monthly Operating Report due to the voluminous nature of these reports and are available upon reasonable request in writing to counsel of the Debtors. *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.
IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE X : Chapter 11 In re: : Case No. 17-11101 (KJC) : (Jointly Administered) KATY INDUSTRIES, INC., et al.,(1) : : Reporting Period: July 1 2017 to July 28, 2017 Debtors. : X GENERAL NOTES Description of the Chapter 11 Cases: On May 14, 2017 (the “Petition Date”), each of the Debtors filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”). The Debtors’ chapter 11 cases are jointly administered for procedural purposes only under the case caption In re Katy Industries, Inc., et at., Case No. 17-11101 (KJC) (Bankr. D. Del.) pursuant to an order entered by the Bankruptcy Court on May 16, 2017 [Dkt. No, 37]. On May 26, 2017, the Office of the United States Trustee for the District of Delaware (the “U.S. Trustee”) appointed seven members to the statutory committee of unsecured creditors pursuant to section 1102(a)(1) of the Bankruptcy Code [Dkt, No. 75], On June 23, 2017, the U.S. Trustee held a meeting of creditors in the Debtors’ chapter 11 cases pursuant to section 341 of the Bankruptcy Code, which was adjourned and continued to August 24, 2017. At the conclusion of the continued 341 hearing, the U.S. Trustee further continued the 341 hearing to a later date. On July 10, 2017, the Debtors filed their respective schedules of assets and liabilities and statements of financial affairs, Also on the Petition Date, the Debtors filed a motion, seeking authority to sell substantially all of their assets (the “Sale”) under section 363 of the Bankruptcy Code [Dkt. No. 18], which contemplated a sale of substantially all of the Debtors’ assets to the stalking horse purchaser, Jansan Acquisition, LLC (the “Stalking Horse Purchaser”), subject to higher or otherwise better offers. On June 19, 2017, the Bankruptcy Court entered an order, approving the stalking horse protections, the procedures related to assumption and assignment of certain executory contracts and unexpired leases under section 365 of the Bankruptcy Code, and the form and manner of certain notices related to the Sale [Dkt. No. 163] (the “Bidding Procedures Order”), The Stalking Horse Purchaser submitted the only Qualified Bid (as defined in the Bidding Procedures Order), and on July 12, 2017, the Debtors announced that the Stalking Horse Purchaser was the Successful Bidder for the purchase of substantially all of the Debtors’ assets [Dkt. No. 276], On (1) The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, where applicable, are: Katy Industries. Inc. (7589), Continental Commercial Products. LLC (3898), FTW Holdings, Inc. (7467), Fort Wayne Plastics, Inc. (7470), Wabash Holding Corp. (9908), Katy Teweh, Inc. (9839), WII, Inc. (0456), TT1 Holdings, Inc, (8680), GCW, Inc. (5610), Hermann Lowenstein, Inc. (4331), American Gage & Machine Company (7074), WP Liquidating Corp. (2310), Ashford Holding Corp, (8113), and HPMI, Inc, (4677). The corporate headquarters and the mailing address for the Debtors listed above is 11840 Westline Industrial Drive, Suite 200, St. Louis, MO 63146.
July 18, 2017, the Bankruptcy Court entered the order approving the Sale [Dkt. No. 295], The Sale closed on July 21, 2017, and the Debtors are in the process of winding down their estates, (See Notice of Closing of Sale of Substantially All of the Debtors’Assets, Dkt. No. 314.) Additional information about the Debtors’ chapter 11 cases, court filings, and claims information is available at the Debtors’ restructuring website: www,jndla,com/cases/katy, Debtors’ Financial Statements: The financial statements and supplemental information contained in this Monthly Operating Report are unaudited, preliminary, and may not comply with generally accepted accounting principles in the United States of America (“U.S. GAAP”) in all material respects. Financial Accounting Standards Board Accounting Standards Codification 852 (Reorganizations) (“ASC 852”), which is applicable to companies in chapter 11, requires that financials for periods after the filing of a chapter 11 petition distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. The financial statements have been prepared in accordance with ASC 852. The unaudited financial statements have been derived from the books and records of the Debtors. This information, however, has not been subject to procedures that would typically be applied to financial information presented in accordance with U.S. GAAP, and upon application of such procedures, the Debtors believe that financial information could be subject to change that can be material. The Debtors, however, are not required to update this Monthly Operating Report to reflect more current facts or estimates, or upon the occurrences of future events, including if the facts, estimates, or assumptions upon which this Monthly Operating Report is based change. The information furnished in this Monthly Operating Report includes preliminary normal recurring adjustments. There can be no assurance that the consolidated financial information presented in this Monthly Operating Report is complete, and readers are strongly cautioned not to place reliance on this Monthly Operating Report, which was not prepared for the purpose of providing the basis for an investment decision relating to any of the securities of the Debtors. The results of operations contained in this Monthly Operating Report are not necessarily indicative of results that may be expected from any other period or for the full year and may not necessarily reflect operations, financial position, or cash flows of the Debtors in the future. The Debtors do not make any representation to any person regarding the Debtors’ future results. The information contained herein is provided to fulfill the requirements of the Office of the United States Trustee. Fiscal Year: The Company operates and reports using a 4-4-5 fiscal year which always ends on December 31. Intercompany Transactions: Intercompany transactions between the Debtors and non-debtor affiliates have not been eliminated in the financial statement contained in this Monthly Operating
Report. No conclusion as to the legal obligation related to these intercompany transactions is made by the presentation herein. Revenue Recognition: Revenue is recognized for all sales, including sales to distributors, at the time the products are shipped and title has transferred to the customer, provided that a purchase order has been received or a contract has been executed, there are no uncertainties regarding customer acceptances, the sale price is fixed and determinable, and collection is deemed probable. The operating Debtors’ standard shipping terms are FOB shipping point. Sales are net of provisions for returns, discounts, customer allowances (such as volume rebates), and cooperative advertising allowances. The Debtors’ sales arrangements do not typically contain standard right of return provisions or limit returns at a certain percentage of sales price or margin; however, in certain instances where a product may be returned, the Debtors recognize revenue only if all of the following conditions are met: a) the sale price is substantially fixed or determinable at date of sale; b) buyer has either paid or is obligated to pay the seller and the obligation is not contingent on resale of the product; c) buyer’s obligation to seller would not be changed in the event of theft or physical destruction of the product; d) buyer has economic substance apart from the seller; e) seller does not have significant obligations for future performance to directly bring about the resale of product by the buyer; and f) the amount of future returns can be reasonably estimated (i.e., defective/wrong products). The Debtors record discounts, customer allowances, and cooperative advertising allowances as reductions of revenue, provisions for which are estimated on a periodic basis based on historic experience. Accounts Receivable and Allowance for Doubtful Accounts: Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Debtors do not require collateral to secure accounts receivable. The allowance for doubtful accounts is the Debtors’ best estimate of the amounts of probable credit losses in their existing accounts receivable. The Debtors determine the allowance, in part, based on its historical write-off experience. The Debtors review their allowance for doubtful accounts quarterly, which includes a review of past due balances over 30 days. All other balances are reviewed on a pooled basis by market distribution channels. Account balances are charged off against the allowance when the Debtors determine it is probable the receivable will not be recovered. The Debtors do not have any off-balance-sheet credit exposure related to its customers. Inventories: Inventories are stated at the lower of (i) cost or (ii) market value, and reserves are established for excess and obsolete inventory in order to ensure proper valuation of inventories. Inventoried costs include materials, labor and overhead. Approximately 67% the Debtors’ inventories were accounted for using the last-in, first-out (“LIFO”) method of costing, while the remaining inventories were accounted for using the first-in, first-out (“FIFO”) method. Current cost, as determined using the FIFO method, exceeded LIFO cost by $3.0 million. Liabilities: As a result of the chapter 11 filings, the payment of prepetition indebtedness is subject to compromise or other treatment under a plan of liquidation,. The determination of how liabilities will ultimately be settled or treated cannot be made until the Bankruptcy Court approves a chapter 11 plan of liquidation. Accordingly, the ultimate amount of such liabilities is not determinable at this time.
Reorganization Items: ASC 852 requires expenses and income directly associated with chapter 11 filings to be reported separately in the income statement as reorganization items. Reorganization items includes expenses related to legal advisory and representation services, other professional consulting and advisory services, debtor-in-possession financing fees, and changes in liabilities subject to compromise recognized as there are changes in amounts expected to be allowed as claims.
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Katy Industries, Inc., et al. Case No. 17-11101 (KJC) Debtors Reporting Period: July 1 to July 28, 2017 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS LEGAL ENTITIES Katy Industries, Inc. Continental Commercial Products, LLC Fort Wayne Plastics, Inc. Total Cumulative from Petition Date CASH BEGINNING OF MONTH $ 4,082,520 $ 2,114,990 $ (69,997 ) $ 6,127,513 $ 2,004,973 RECEIPTS COLLECTIONS OF ACCOUNTS RECEIVABLE $ — $ 3,828,811 $ 516,094 $ 4,344,905 $ 12,275,079 DIP LOAN PROCEEDS 0 0 0 0 7,312,500 CASH COLLATERAL PROCEEDS, NET 0 (604,780 ) (515,579 ) (1,120,359 ) -3,447,583 SALE OF ASSETS 1,723,856 0 0 1,723,856 1,723,856 OTHER (ATTACH LIST) 0 464,224 0 464,224 518,396 TRANSFERS FROM/(TO) DIP ACCTS (930,542 ) 930,542 0 0 0 TRANSFERS TO/(FROM) CCP 160,569 (629,474 ) 468,905 (0 ) 0 TOTAL RECEIPTS $ 948,882 $ 3,989,324 $ 469,420 $ 5,407,626 $ 18,377,248 DISBURSEMENTS INVENTORY & COMPONENTS $ — $ 1,038,355 $ (1) $ 1,038,354 $ 4,628,680 PAYROLL & TAXES 0 1,046,537 100,149 1,146,686 2,743,041 TEMPORARY SERVICES 0 7,617 11,792 19,409 116,712 EMPLOYEE BENEFITS 25,071 78,959 29,203 133,233 637,991 RENTS 32,123 171,506 39,643 243,272 444,319 UTILITIES 0 315,822 0 315,822 564,235 FREIGHT & LOGISTICS 20 282,156 151,442 433,618 947,827 LEASES 0 27,834 184 28,018 28,492 COMMISSIONS 0 0 9,712 9,712 45,783 SUPPLIES & OTHER 1,001 272,034 899 273,934 772,561 GENERAL INSURANCE 0 99,151 59,822 158,973 703,715 OTHER 0 34,727 0 34,727 100,963 PRE-PETITION CLAIMS 506 280,429 0 280,935 990,248 INTEREST & FEES 0 0 0 0 204,209 $ 58,721 $ 3,655,127 $ 402,845 $ 4,116,693 $ 12,928,775 PROFESSIONAL FEES-Schedule Attached 397,483 0 0 397,483 432,483 U.S. TRUSTEE QUARTERLY FEES 0 0 0 0 0 COURT COSTS 0 0 0 0 0 TOTAL DISBURSEMENTS $ 456,203 $ 3,655,127 $ 402,845 $ 4,514,176 $ 13,361,258 NET CASH FLOW (RECEIPTS LESS DISBURSEMENTS) $ 492,679 $ 334,196 $ 66,576 $ 893,451 $ 5,015,990 CASH END OF MONTH 4,575,199 $ 2,449,186 $ (3,422 ) $ 1,020,963 $ 7,020,963 TOTAL DISBURSEMENTS $ 4,514,176 $ 13,361,258 LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS 0 0 PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts) 0 0 TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES $ 4,514,176 $ 13,361,258 All other debtors listed in footnote 1 of this Monthly Operating Report but not reflected on this Schedule of Cash Receipts and Disbursements are inactive entities and, thus, have no receipts or disbursements.
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Katy Industries, Inc., et al. Case No. 17-11101 (KJC) Debtors Reporting Period: July 1 to July 28, 2017 CONSOLIDATING SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS BANK RABOBANK BMO Harris ACCOUNT NO 1166 1167 1168 1169 9460 8357 Professional Fee Accounts ACCOUNT NAME Escrow DTP Account Utility Escrow 503(b)9 UMR Insurance Payable Total CASH BEGINNING OF MONTH $ 2,622,000 $ 1,577,153 $ 20,000 $ (133,956) $ (2,677) $ 4,082,520 RECEIPTS COLLECTIONS OF ACCOUNTS RECEIVABLE 0 DIP LOAN PROCEEDS 0 CASH COLLATERAL PROCEEDS 0 SALE OF ASSETS 905,000 818,856 1,723,856 OTHER (ATTACH LIST) 0 TRANSFERS (To)/From CCP (930,542) 127,502 33,067 (769,974) Transfers From DIP Account 0 TRANSFERS FROM/(TO) DIP ACCTS (600,000) 600,000 0 0 TOTAL RECEIPTS $ 905,000 $ (711,686) $ — 600,000 $ 127,502 $ 33,067 953,882 DISBURSEMENTS INVENTORY & COMPONENTS 0 0.00 PAYROLL & TAXES TEMPORARY SERVICES 0 0 EMPLOYEE BENEFITS 25,071 25,071 RENTS 32,123 32,123 UTILITIES 0 FREIGHT & LOGISTICS 20 20 LEASES 0 COMMISSIONS 0 SUPPLIES & OTHER 1,001 1,001 GENERAL INSURANCE 0 OTHER (ATTACH LIST) 0 PRE-PETITION CLAIMS 506 506 INTEREST & FEES 0 TAXES 5,000 5,000 $ — $ — $ — $ — $ 25,071 $ 38,650 $ 63,721 PROFESSIONAL FEES-Schedule Attached $ 397,483 397,483 U.S. TRUSTEE QUARTERLY FEES 0 COURT COSTS 0 TOTAL DISBURSEMENTS $ 397,483 $ — $ — $ — $ 25,071 $ 38,650 $ 461,203 NET CASH FLOW (RECEIPTS LESS DISBURSEMENTS) $ 507,517 $ (711,686) $ — $ 600,000 $ 102,431 $ (5,583) $ 492,679 CASH - END OF MONTH $ 3,129,517 $ 865,467 $ 20,000 $ 600,000 $ (31,525) $ (8,260) $ 4,575,199
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Katy Industries, Inc., et al. Case No. 17-11101 (KJC) Debtors Reporting Period: July 1 to July 28, 2017 CONSOLIDATING SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS BANK BMO Harris ACCOUNT NO 8892 8224 2407 8918 9394 9452 9386 CCP Account CENTREX Accounts ACCOUNT NAME Lockbox Operating Cash Collateral Payable Payable Payroll Payroll Total CASH BEGINNING OF MONTH $ 153,245 $ 642,238 $ 1,466,991 $ (146,104) $ — (1,381) $ — $ 2,114,990 RECEIPTS COLLECTIONS OF ACCOUNTS RECEIVABLE $ 3,828,811 3,828,811 TRANSFERS FROM DIP ACCOUNT 930,542 930,542 CASH COLLATERAL PROCEEDS 0 0 SALE OF ASSETS 0 OTHER (ATTACH LIST) 464,224 464,224 Funds Transfer-Operating Account (3,278,141) 1,908,256 $ 607,297 133,114 (629,474) FUNDS TRANSFER-Cash Collateral (3,472,535) 2,867,755 (604,780) 0 TOTAL RECEIPTS $ 356,276 $ 984,380 $ — $ 1,908,256 $ — $ 607,297 5 133,114 $ 3,989,324 DISBURSEMENTS INVENTORY & COMPONENTS $ 106,353 $ 932,000 $ 1,038,353 PAYROLL, & TABS 295,512 11,995 $ 605,916 $ 133,114 1,046,537 TEMPORARY SERVICES 7,617 7,617 EMPLOYEE BENEFITS 15,115 63,843 78,959 RENTS 171,506 171,506 UTILITIES 85,054 230,768 315,822 FREIGHT & LOGISTICS 282,156 282,156 LEASES 27,834 27,834 COMMISSIONS 0 SUPPLIES & OTHER 112,440 159,593 272,034 GENERAL INSURANCE 99,151 99,151 OTHER (ATTACH LIST) 34,727 34,727 PRE-PETITION CLAIMS 137,700 142,729 280,429 INTEREST & FEES 0 $ — $ 886,053 $ — $ 2,030,042 $ — $ 605,916 $ 133,114 $ 3,655,125 PROFESSIONAL FEES-Schedule Attached 0 U.S. TRUSTEE QUARTERLY FEES 0 COURT COSTS 0 TOTAL DISBURSEMENTS $ — $ 886,053 $ — $ 2,030,042 $ — $ 605,916 $ 133,114 $ 3,655,125 NET CASH FLOW (RECEIPTS LESS DISBURSEMENTS) $ 356,276 $ 98,328 $ — $ (121,786) $ — 1,381 $ — $ 334,198 CASH - END OF MONTH $ 509,521 $ 740,566 $ 1,466,991 $ (267,890) $ — (0) $ — $ 2,449,188 OTHER DISBURSEMENTS Oridinary Course Professionals $ — $ — $ — $ — $ — $ — $ — $ —
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Katy Industries, Inc., et al. Case No. 17-11101 (KJC) Debtors Reporting Period: July I to July 28, 2017 CONSOLIDATING SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS BANK BMO Harris ACCOUNT NO 1654 1639 1670 Account ACCOUNT NAME Lockbox Petty Cash Operating Payable Total CASH BEGINNING OF MONTH $ (0) $ 899 $ (0) $ (70,895) $ (69,997) RECEIPTS COLLECTIONS OF ACCOUNTS RECEIVABLE $ 516,094 $ 516,094 DIP LOAN PROCEEDS 0 TRANSFER TO CASH COLLATERAL (515,579) (515,579) SALE OF ASSETS 0 OTHER (ATTACH LIST) 0 TRANSFERS FROM/(TO) OPERATING ACCT (464,562) 464,562 0 TRANSFERS FROM CCP 468,905 468,905 TOTAL RECEIPTS 515 0 4,343 464,562 $ 469,420.34 DISBURSEMENTS INVENTORY & COMPONENTS $ — PAYROLL & TAXES $ 100,149 100,149 TEMPORARY SERVICES 11,792 11,792 EMPLOYEE BENEFITS 4,343 24,860 29,203 RENTS 39,643 39,643 UTILITIES 0 FREIGHT & LOGISTICS 151,442 151,442 LEASES 184 184 COMMISSIONS 9,712 9,712 SUPPLIES & OTHER 899 899 GENERAL INSURANCE 59,822 59,822 OTHER (ATTACH LIST) 0 PRE-PETITION CLAIMS 0 INTEREST & FEES 0 $ — $ 899 $ 4,343 $ 397,604 $ 402,846 PROFESSIONAL FEES-Schedule Attached 0 U.S. TRUSTEE QUARTERLY FEES 0 COURT COSTS 0 TOTAL DISBURSEMENTS $ — 899 $ 4,343 $ 397,604 $ 402,846 NET CASH FLOW (RECEIPTS LESS DISBURSEMENTS) $ 515 $ (899) $ (0) $ 66,958 $ 66,575 CASH END OF MONTH $ 515 $ (9) $ (0) $ (3,937) $ (3,423)
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Katy Industries, Inc., et al. Case No. 17-11101 (KJC) Debtors Reporting Period: July 1 to July 28, 2017 DECLARATION REGARDING THE STATUS OF BANK RECONCILIATIONS OF THE DEBTORS Robert W. Zimmer hereby declares under penalty of perjury: 1. I am the Chief Financial Officer of Katy Industries, Inc., one of the debtors in these chapter 11 cases (the “Debtors”), In that capacity, I am familiar with the day-to-day operations, business affairs and books and records of the Debtors. I am authorized to submit this Declaration on behalf of the Debtors, 2. All statements in the Declaration are based on my personal knowledge, my review of the relevant documents, my discussions with other employees of the Debtors, or my opinion based upon my experience and knowledge of the Debtors’ operations and financial condition, If I were called upon to testify, I could and would testily to each of the facts set forth based on such personal knowledge, review of documents, discussions with other employees of the Debtors, or opinion. 3. To the best of my knowledge, the Debtors’ bank balance as of July 28, 2017 have been reconciled in an accurate and timely manner. Dated: September 12, 2017 Respectfully submitted, /s/ Robert W. Zimmer By: Robert W. Zimmer Title: Chief Financial Officer
In re: Katy Industries, Inc., et al. Case No. 17-11101 (WC) Debtors Reporting Period: Inception to July 28, 2017 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID This schedule is to include all retained professional payments from case inception to current month. Check Amount Paid Year-To-Date Payee Period Covered Amount Approved Payor Number Date Fees Expenses Fees Expenses DLA Piper LLP Katy Industries, Inc. $- $- $- Lincoln International LLC June-17 Katy Industries, Inc. Wire 7/11/2017 35,000 70,000 0 Sierra Constellation Partners LLC May-17 Katy Industries, Inc. Wire 7/11/2017 70,420 7,889 Sierra Constellation Partners LLC June-17 Wire 7/21/2017 182,985 18,188 253,405 26,078 Sitrick and Company Katy Industries, Inc. 0 $- JND Corporate Restructuring June-17 Katy Industries, Inc. Wire 7/14/2017 83,000 $- 83,000 0 $371,405 $26,078 $406,405 $26,078
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Katy Industries, Inc., et al. Case No. 17-11101 (JKC) Debtors Reporting Period: July 1 to July 28, 2017 Schedule of Bank Reconciliations Company Bank Account Number Account Name Balance per Bank Less - Outstanding Checks Other Items Amount Balance per General Ledger Katy Industries, Inc. Professional Fee Rabobank 1166 Escrow $3,129,517 $3,129,517 Rabobank 1167 DIP Account 865,467 865,467 Rabobank 1168 Utility Escrow 20,000 20,000 Rabobank 1169 503(b)9 600,000 600,000 $4,614,984 $- $- $4,614,984 BM0 Harris 9460 UMR Insurance 0 (31,525) 0 (31,525) BMO Harris 8357 Accounts Payable 0 (8,260) (8,260) $- $(39,785) $- (39,785) $4,614,984 $(39,785) $- $4,575,199 Contential Commercial Products, LLC BMO Harris 8224 Operating Account $- BMO Harris 2407 Cash Collateral 1,466,991 1,466,991 BMO Harris 8892 Lockbox 0 0 BMO Harris 8918 Accounts Payable 0 (267,891) (267,891) BMO Harris 9386 Payroll 0 0 HMO Harris 9394 Accounts Payable 0 0 BMO Harris 9452 Payroll 0 (0) (0) $1,466,991 $(267,891) $- $1,199,100 Fort Wayne Plastics, Inc. BMO Harris 1639 Operating Account $- $- 13M0 Harris 1654 Lockbox 5L5 515 BMO Harris 1670 Accounts Payable 0 (3,937) (3,937) Petty Cash 0 0 $515 $(3,937) $- $(3,422)
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Katy Industries, Inc., et al. Case No. 17-11101 (KJC) Debtors Reporting Period: July 1 to July 28, 2017 CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) Cumulative Period Filing to Date REVENUES Net sales $3,839,680 $13.084,117 Cost of Goods Sold 4,309,186 11,919,486 Gross Margin $(469,506) $1,164,631 Selling & Administration Selling Expenses $193,634 $625,166 Administrative Expenses 50,698 1,644,816 Total Selling & Administrative Expense $244,332 $2,269,982 Operating Profit/(Loss) $(713,838) $(1,105,351) Non-operating (Income}/expense Interest Expense $514,212 $1,890,265 Interest Income (1,735) (4,217) Other (Income)/Expense (8,965) (13,667) Total non-operating $503,512 1,872,381 Net Profit (Loss) Before Reorganization Items $(1,217,350) $(2,977,732) REORGANIZATION ITEMS Professional Fees $397,483 $432,483 U, S, Trustee Quarterly Fees 0 0 Gain (Loss) from Sale of Equipment 18,068,439 18,068,439 Other Reorganization Expenses 568,057 739,382 Total Reorganization Expenses $(17,102,899) $(16,896,574) Pre-Tax Income/(loss} $15,885,549 $13,918,842 Income Taxes 5,000 5,000 Net Income/(Loss) $15,880,549 $13,913,842
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Katy Industries, Inc., et al. Case No. 17-11101 (KJC) Debtors Reporting Period: July 1 to July 28, 2017 CONSOLIDATING STATEMENT OF OPERATIONS 17-11101 17-11102 See MOR-2b See MOR-Zc Case No: Consolidated Eliminations Katy Industries, Inc, Continental Commercial Products, LUC Consolidated Fort Wayne Holdings, Inc. Inactive Subsidiaries REVENUES Net Sales $3,839,680 $(928,978) $- $3,895,648 $873,010 $- Cost of Goods Sold 4,309,186 (928,978) 1,773 4,122,509 1,113,882 0 Gross Margin $(469,506) $- $(1,773) $(226,861) $(240,872) $- Selling & Administration Selling expense $193,634 $191,816 $1,818 $- Administrative Expense 50,698 $- 26,990 242,846 80,298 (299,436) Total Selling & Administrative Expense $244,332 $- $26,990 $434,662 $82,116 $(299,436,00) Operating Profit/(Loss) $(713,838) S- $(28,763) $(661,523) $(322,988) S299,436 Non-operating (Income)/expense Interest Expense $514,212 $41,501 $472,711 $- $- Interest Income -1,735 (1,735) 0 0 Other (Income)/Expense (8,965) (8,965) 0 0 Total non-operating 503,512 0 41,501 462,011 $- $- Net Profit (Loss) Before Reorganization Items $(1,217,350) $- $(70,264) $(1,123,534) $(322,988) $299,436 00 REORGANIZATION ITEMS Professional Fees $397,483 $397,483 $- $- U. S. Trustee Quarterly Fees 0 0 0 0 Gain (Loss) from Sale of Equipment 18,068,439 (22,495,726) 52,536,273 (11,972,108) 0 Other Reorganization Expenses 568,057 431,754 136,303 0 0 Total Reorganization/(income) Expenses $(17,102,899) $- $23,324,963 $(52,399,970) $11,972,108 $- Pre-Tax Income/(Loss) $15,885,549 $- $(23,395,227) $51,276,436 $(12,295,096) $299,436 Income Taxes 5,000 5,000 0 0 0 Net Income/(Loss) $15,880,549 $- $(23,400,227) $51,276,436 $(12,295,096) $299,436
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Katy Industries, Inc., et al. Case No. 17-11101 (KJC) Debtors Reporting Period: July 1 to July 28, 2017 CONSOLIDATING STATEMENT OF OPERATIONS-FORT WAYNE HOLDINGS, Inc. & SUBSIDIARY 17-11103 17-11104 Case No: Consolidated Fort Wayne Holdings, Inc. Eliminations Fort Wayne Holdings, Inc. Fort Wayne Plastics, Inc, REVENUES Net Sales $873,010 $- $- $873,010 Cost of Sales 1,113,882 0 0 1,113,882 Gross Margin $(240,872) $- $- $(240,872) Selling & Administration Selling Expense $1,818 $1,818 Administrative Expense 80,298 80,298 Total Selling & Administrative Expense $82,116 $- $- $82,116 Operating Profit/(Loss) $(322,988) $- $- $(322,988) Non-operating (Income)/expense Interest Expense $- Interest Income 0 Other (Income)/Expense 11,972,108 11,972,108 Total non-operating $11,972,108 $- $- $11,972,108 Net Profit (Loss) Before Reorganization Items $(12,295,096) $- $- $(12,295,096) REORGANIZATION ITEMS Professional Fees $- U, S, Trustee Quarterly Fees 0 Gain (Loss) from Sale of Equipment 0 Other Reorganization Expenses 0 Total Reorganization Expenses $- $- $- $- Pre-Tax Income/(Loss) $(12,295,096) $- $- $(12,295,096) Income Taxes 0 0 0 0 Net Income/(Loss) $(12,295,096) $- $- $(12,295,096)
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Katy Industries, Inc., et al. Case No. 17-11101 (KJC) Debtors Reporting Period: July 1 to July 28, 2017 CONSOLIDATING STATEMENT OF OPERATIONS-INACTIVE SUBSIDIARIES 17-11105 17-11106 17-11107 17-11108 17-11109 17-11110 17-11111 17-11112 17-11113 17-11114 American Hermann Gage & WP Inactive Wabash Katy Teweh, TTI, Holdings Lowenstein Machine Liquidating Ashford Case No: Subsidiaries Holding Corp Inc. WII, Inc. Inc. GCW, Inc. Inc. Company Corp Holding Corp HPMI, Inc. REVENUES Net Sales $- $- $- $- $- $- $- $- $- $- $- COST OF GOODS SOLD Cost of Sales 0 0 0 0 $- $- $- $- $- $- $- Gross Margin $- $- $- $- $- $- $- $- $- $- $- Selling & Administration Selling Expense $- Administrative Expense (299,436) 0 (310,906) -31,438 42,908 Total Selling & Administrative Expense $(299,436) $- $(310,906) $- $(31,438) $- $42,908 $- $- $- $- Operating Profit/(Loss) $299,436 $- $310,906 $- $31,438 $- $(42,908) $- $- $- $- Non-operating (Income)/expense Interest Expense $- Interest Income 0 Other (Income)/Expense 0 Total non-operating $- $- $- $- $- $- $- $- $- $- $- Net Profit (Loss) Before Reorganization Items $299,436 $- $- $- $- $- $- $- $- $- $- REORGANIZATION ITEMS Professional Fees $- U. S. Trustee Quarterly Fees 0 Gain (Loss) from Sale of Equipment 0 Other Reorganization Expenses 0 Total Reorganization Expenses $- $- $- $- $- $- $- $- $- $- $- Pre-Tax Income/(Loss) $299,436 $- $310,906 $- $31,438 $- $(42,908) $- $- $- $- Income Taxes 0 0 0 0 0 0 0 0 0 0 0 Net Income/(Loss) $299,436 $- $310,906 $- $31,438 $- $(42,908) $- $- $- $-
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Katy Industries, Inc., et al. Case No. 17-11101 (KJC) Debtors Reporting Period: July 28, 2017 CONSOLIDATED BALANCE SHEET (Unaudited) July 28, 2017 Prior Period Petition Date ASSETS CURRENT ASSETS Unrestricted Cash and Equivalents $ 7,020,963 $ 6,127,513 $ 2,004,972 Accounts Receivable (Net) 0 8,358,404 7,879,871 Notes Receivable 0 0 0 Inventories, net 0 7,669,851 6,711,037 Prepaid Expenses 517,276 1,208,837 414,869 Net Inter-company accounts 0 332,407 174,499 Other Current Assets 42,796 650,793 580,435 TOTAL CURRENT ASSETS 7,581,035 $ 24,347,805 $ 17,765,683 PROPERTY AND EQUIPMENT Land and improvements $ — 285,129 $ 285,129 Buildings and improvements 0 6,897,720 6,897,720 Machinery and equipment 0 44,717,062 44,706,564 Less Accumulated Depreciation 0 (36,840,552) (36,533,567) TOTAL PROPERTY & EQUIPMENT $ — 15,059,359 15,355,846 OTHER ASSETS Goodwill, net $ — $ 24,198,802 $ 24,318,535 Lease Deposits 0 194,449 200,449 Notes Receivable 631,995 612,079 608,519 Other intangible assets, net 0 7,600,789 7,785,688 Investment in unconsolidated subsidiaries 2,164,931 18,966,005 18,966,005 TOTAL OTHER ASSETS 2,796,926 $ 51,572,124 $ 51,879,196 TOTAL ASSETS 10,377,961 90,979,288 $ 85,000,725
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Katy Industries, Inc., et al. Case No. 17-11101 (KJC) Debtors Reporting Period: July 28, 2017 CONSOLIDATED BALANCE SHEET (Unaudited) July 28, 2017 Prior Period Petition Date LIABILITIES AND OWNER EQUITY LIABILITIES Current Liabilities Accounts Payable - Pre-Petition $19,845,546 $21,009,355 $21,369,781 Accounts Payable - Post Petition 0 $870,851 $— Accrued Expenses 2,630,721 8,214,451 7,169,231 Accrued Compensation 0 792,900 657,737 Accrued Interest 0 193,587 52,885 TOTAL CURRENT LIABILITIES $22,476,267 $31,081,144 $29,249,634 SECURED DEBT Revolver $— $18,565,526 $13,019,108 Senior Term Notes 0 6,510,000 6,510,000 Subordinated Debt 0 37,307,139 36,718,401 Capital Leases 0 340,190 351,447 Shareholder Notes 330,355 327,518 321,168 Total Secured Debt $330,355 $63,050,373 $56,920,124 NON-CURRENT LIABILITIES Post retirement benefits $439,741 $1,439,261 $1,203,156 Deferred Compensation 0 505,762 499,624 Deferred taxes 0 122,000 122,000 GAAP Lease Obligations 0 5,584,378 5,843,111 TOTAL NON-CURRENT LIABILITIES $439,741 $7,651,401 $7,667,891 TOTAL LIABILITIES $23,246,363 $101,782,918 $93,837,649 SHAREHOLDERS EQUITY Convertible Preferred Stock $108,256,190 $108,256,190 $108,256,190 Common Stock 9,822,204 9,822,204 9,822,204 Additional Paid-In Capital 196,337,115 31,148,825 31,148,825 Accumulated other comprehensive loss (651,660) (651,660) (651,660) Retained Earnings - Pre-Petition (319,109,391) (135,975,780) (135,975,781) Retained Earnings - Post-Petition 13,913,842 (1,966,707) 0 Treasury Stock (21,436,702) (21,436,702) (21,436,702) TOTAL SHAREHOLDERS EQUITY $(12,868,402) $(10,803,630) $(8,836,924) TOTAL LIABILITIES AND OWNERS’ EQUITY $10,377,961 $90,979,288 $85,000,725
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Katy Industries, Inc., et al. Case No. 17-11101 (KJC) Debtors CONSOLIDATING BALANCE SHEET (Unaudited) As of July 28, 2017 17-11101 17-11102 Continental See MOR-3b Consolidated Fort See MOR-3c Katy Industries, Commercial Wayne Holdings, Inactive Consolidated Eliminations Inc. Products, LLC Inc. Subsidiaries ASSETS CURRENT ASSETS Unrestricted Cash and Equivalents $ 7,020,963 $ 4,575,199 $ 2,449,186 $ (3,422) $ - Accounts Receivable (Net) 0 0 0 Inventories, net 0 0 - Prepaid Expenses 517,276 176,731 340,545 0 - Net Inter-company accounts 0 3,833,296 (140,202,674) 1,024,522 (59,965) 135,404,821 Other Current Assets 42,796 42,796 0 - TOTAL CURRENT ASSETS 7,581,035 3,833,296 (135,450,744) 3,857,049 (63,387) $ 135,404,821 PROPERTY AND EQUIPMENT Land and improvements $ - $ $ - Buildings and improvements 0 0 0 Machinery and equipment - - - Less Accumulated Depreciation - - - TOTAL PROPERTY & EQUIPMENT $ - $ - $ - $ - $ $ - OTHER ASSETS Goodwill, net $ - $ - $ - Lease Deposits 0 0 - Notes Receivable 631,995 631,995 0 - Other intangible assets, net 0 0 - Investment in unconsolidated subsidiaries 2,164,931 (136,147,134) 138,312,065 0 - TOTAL OTHER ASSETS $ 2,796,926 $ (136,147,134) $ 138,312,065 $ 631,995 $ $ - TOTAL ASSETS $ 10,377,961 $ (132,313,838) $ 2,861,321 $ 4,489,044 $ (63,387) $ 135,404,821
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Katy Industries, Inc., et al. Case No. 17-11101 (KJC) Debtors CONSOLIDATING BALANCE SHEET (Unaudited) As of July 28, 2017 17-11101 17-11102 See MOR-3b See MOR-3c LIABILITIES AND OWNER EQUITY LIABILITIES Consolidated Eliminations Continental Consolidated Fort Katy Industries, Commercial Wayne Holdings, Inactive Inc. Products, LLC Inc. Subsidiaries Current Liabilities Accounts Payable Pre-Petition $19,845,546 $- $2,478,672 $14,992,339 $2,374,535 $- Accounts Payable Post-Petition 0 0 Accrued Expenses 2,630,721 421,373 1,813,270 0 396,077 Accrued Compensation - - - - Accrued Interest - - - TOTAL CURRENT LIABILITIES $22,476,267 $- $2,900,045 S 16,805,609 $ 2,374,535 $ 396,077 Debt Revolver $- $- $ - Senior Term Notes 0 0 0 Subordinated Debt - - - Capital Leases - - - Shareholder Notes 330,355 330,355 - - Total Debt $ 330,355 $- 0 $ 330,355 $- S- NON-CURRENT LIABILITIES Post retirement benefits $ 439,741 $ 389,759 $- $ 49,982 Deferred Compensation - - - Deferred taxes - - - GAAP Lease Obligations - - - TOTAL NON-CURRENT LIABILITIES $ 439,741 $- $ 389,759 $- S- $ 49,982 TOTAL LIABILITIES $ 23,246,363 $- S 3,289,804 $ 17,135,964 $ 2,374,535 $ 446,059
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Katy Industries, Inc., et al. Case No. 17-11101 (KJC) Debtors CONSOLIDATING BALANCE SHEET (Unaudited) As of July 28, 2017 17-11101 17-11102 See MOR-3b See MOR-3c Continental Consolidated Fort Katy Industries, Commercial Wayne Holdings, Inactive Consolidated Eliminations Inc. Products, LLC Inc. Subsidiaries SHAREHOLDERS EQUITY Convertible Preferred Stock $ 108,256,190 $ (5,150,000) $ 108,256,190 $ - $- $ 5,150,000 Common Stock 9,822,204 (1,203,001) 9,822,204 - 1 1,203,000 Additional Paid-in Capital 196,337,115 (68,717,248) 31,148,825 165,188,290 10,774,275 57,942,973 Accumulated other comprehensive loss (651,660) (80,944) - (570,716) Retained Earnings - Pre-Petition (319,109,391) (57,243,589) (103,687,774) (228,335,363) (781,848) 70,939,183 Retained Earnings - Post-Petition 13,913,842 (24,450,283) 50,500,153 (12,430,350) 294,322 Treasury Stock (21,436,702) (21,436,702) - - TOTAL SHAREHOLDERS EQUITY $ (12,868,402) $ (132,313,838) $ (428,484) $ (12,646,920) $ (2,437,922) $ 134,958,762 TOTAL LIABILITIES AND OWNERS’ EQUITY $ 10,377,961 $ (132,313,838) 2,861,320 $ 4,489,044 $ (63,387) $ 135,404,821
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Katy Industries, Inc., et al. Case No. 17-11101 (MC) Debtors CONSOLIDATING BALANCE SHEET (Unaudited) As of July 31, 2017 Consolidating Fort Wayne Holdings, Inc. ASSETS Consolidated Fort Eliminations 17-11103 17-11104 CURRENT ASSETS Wayne Holdings, Fort Wayne Holdings, Inc. Fort Wayne Plastices, Inc. Unrestricted Cash and Equivalents Accounts Receivable (Net) Inc (3,423) 0 0 0 Inventories, net (3,423) Prepaid Expenses 0 0 0 Net Inter-company accounts (59,965) (59,965) Other Current Assets TOTAL CURRENT ASSETS (63,388) $ (63,388) PROPERTY AND EQUIPMENT Land and improvements - Buildings and improvements 0 0 Machinery and equipment - Less Accumulated Depreciation TOTAL PROPERTY & EQUIPMENT OTHER ASSETS Goodwill, net - Lease Deposits Notes Receivable Other intangible asseets, net 0 0 Investment in unconsolidated subsidiaries 0 (10,774,276) 10,774,276 TOTAL OTHER ASSETS $ (10,774,276) $ 10,774,276 $ TOTAL ASSETS (63,388) $ (10,774,276) $ 10,774,276 $ (63,388)
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Katy Industries, Inc., et al. Case No. 17-11101 (KJC) Debtors CONSOLIDATING BALANCE SHEET (Unaudited) As of July 31, 2017 Consolidating Fort Wayne Holdings, Inc. LIABILITIES AND OWNER EQUITY LIABILITIES Current Liabilities Accounts Payable Pre-Petition Consolidated Fort Wayne Holdings, Inc Eliminations $ 2,374,535 $ 17-11103 Fort Wayne Holdings, Inc. 17-11104 Fort Wayne Plastices, Inc. $ 2,374,535 Accounts Payable Post-Petition 0 0 Accrued Expenses 0 0 Accrued Compensation 0 0 Accrued Interest 0 TOTAL CURRENT LIABILITIES 2,374,535 $ $ - $ 2,374,535 NON-CURRENT LIABILITIES Deferred taxes TOTAL NON-CURRENT LIABILITIES $ $ $ - $ TOTAL LIABILITIES 2,374,535 2,374,535 SHAREHOLDERS EQUITY Convertible Preferrred Stock $ - $ - $ - $ - Common Stock 1 (0) 1 0 Additional Paid-in Capital 10,774,275 10,774,275 Accumulated other comphehensive loss (10,774,276) 10,774,276 Retained Earnings - Pre-Petition (781,848) (781,848) Retained Earnings - Post-Petition (12,430,350) (12,430,350) Treasury Stock TOTAL SHAREHOLDERS EQUITY $ (2,437,922) $ (10,774,276) $ 10,774,276 $ (2,437,922) TOTAL LIABILITIES AND OWNERS’ EQUITY (63,387) $ (10,774,276) $ 10,774,276 $ (63,387)
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Katy Industries, Inc., et at. Case No. 17-11101 (KJQ Debtors CONSOLIDATING BALANCE SHEET (Unaudited) As of July 28, 2017 17-11105 17-11106 17-11107 17-11108 17-11109 17-11110 17-11111 17-11112 17-11113 17-1114 Inactive Subsidiaries Eliminations Wabash Holding Corp KatyTewch,Inc WII, lnc. TTI, Holdings GCW, Inc. Hermann Lowenstein Inc. American Gage & Machine Company WP Liquidating Ashford Holding Corp Corp HPMI, Inc. ASSETS CURRENT ASSETS Unrestricted Cash and Equivalents $ - Accounts Receivable (Net) 0 Notes Receivable 0 Inventories, net 0 Prepaid Expenses 0 11,959,550 Net Inter-company accounts 135,404,821 3,578,827 (28,847,177) 71,480,093 6,119,575 23,036,075 25,972,861 (1,181,538) 23,286,555 Other Current Assets (attach schedule) 0 TOTAL CURRENT ASSETS 135,404,821 3,578,827 (28,847,177) 71,480,093 6,119,575 23,036,075 - 25,972,861 (1,181,538) 23,286,555 11,959,550 PROPERTY AND EQUIPMENT Land and improvements $ - Buildings and improvements 0.00 Machinery and equipment 0,00 Less Accumulated Depreciation 0.00 TOTAL PROPERTY & EQUIPMENT $ - $ $ - $ - - - - - - OTHER ASSETS Goodwill, net 0 Lease Deposits Notes Receivable Other intangible assets, net 0 - Investment in unconsolidated subsidiaries 0 (4,938,036) 6,119,574 (1,181,538) TOTAL OTHER ASSETS $ - $ (4,938,036) $ $ - $ 6,119,574 $ - $ $ $ $ (1,181,538) $ $ $ TOTAL ASSETS $ 135.404,821 $ (4.938,036) $ 3,578,827 $ (28,847,177) $ 77,599,667 $ 6,119,575 $ 23,036,075 $ $ 24,791,323 $ (1,181,535) $ 23,286,555 $ 11,959,550
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Katy Industries. Inc., et al. Case No. 17.11101 (KJC) Debtors CONSOLIDATING BALANCE SHEET (Unaudited) As of July 28, 2017 17-11105 17-11106 17-11107 17-11108 17-11109 17-11110 17-11111 17-11112 17-11113 17-11114 Inactive Subsidiaries Eliminations Wabash Holding Corp Katy Tewch, Inc. WII, Inc. TTI, Holdings GCW, Inc. Hermann Lowenstein Inc. American Gage & Machine Company WP liquidating Corp Ashford Holding Corp HPMI, Inc. in LIABILITIES AND OWNER EQUITY LIABILITIES Current Liabilities Accounts Payable 0 0 0 0 - - - - - - Accrued Expenses 396,077 396,077 Accrued Compensation - Accrued Interest - - $ - TOTAL CURRENT LIABILITIES $ 396,077 $ $ 1 - - - - 396,077 - - DEBT Revolver $ - Senior Term Notes $ - Subordinated Debt - Capital Leases - Shareholder Notes - Total Debt - 0 - - - - - - - - NON-CURRENT LIABILITIES Post retirement benefits 49,982 - - 49,982 Deferred Compensation - Deferred taxes - GAAP Lease Obligations - $ TOTAL NON-CURRENT LIABILITIES $ 49,982 $ $ I $ - $ - $ - $ $ 49,982 $ $ $ TOTAL LIABILITIES % 446,059 $ $ $ $ - $ - $ - $ $ 446,059 $- $ - $ $- SHAREHOLDERS EQUITY Convertible Preferred Stock $ 5,150,000 $ $ - $ - $ 2,650,000 $- $ 2,500,000 $ $- Common Stock 1,203,000 (500,000) 1,000 1,000 200,000 500,000 1,000,000 1,000 Additional Paid-in Capital 57,942,973 (7,782,135) 6,134,502 44,102,184 7,782,135 6,275,443 1,236,128 194,715 Accumulated other comprehensive loss (570,716) (397,537) (56,432) (116,747) 11,763,834 Retained Earnings - Pre-Petition 70,939,183 3,344,099 (2,464,930) (2S,S4S,I77) 33,522,477 (1,662,560) 23,195,730 15,219,821 (1,681,538) 18,550,427 Retained Earnings - Post-Petition 294,322 305,792 31,438 (42,908) Treasury Stock . TOTAL SHAREHOLDERS EQUITY $ 134,958,762 $ (4,938,036) $ 3,578,827 $ (28,847,177) $ 77.599,667 $ 6,119,575 $ 23,036,075 $- $ 24,345,264 % (1,181,538) $ 23,286,555 $ 11,959,550 TOTAL LIABILITIES AND OWNERS' EQUITY $ 135,404,821 $ (4,938,036) $ 3,578,827 $ (28,847,177) $ 77.599,667 $ 6,119,575 $ 23.036,075 $- $ 24,791,323 $ (1,181,538) $ 23,286,555 $ 11,959,550
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re; Katy Industries, Inc., et al. Case No. 17-11101 (KJC) Debtors Reporting Period: July 28, 2017 SUMMARY OF UNDISPUTED UNPAID POST-PETITION DEBTS Number of Days Past Due Accounts Payable Current 0-30 31-60 61-90 Over 90 Total Katy Industries, Inc, 13,250 0 13,250 Contential Commercial Products, LLC 0 0 0 0 Fort Wayne Plastics, LLC, 0 0 0 Total Postposition Debts 13,250 0 0 0 0 $ 13,250 Affidavit of the Chief Financial Officer concerning payment of payroll taxes Robert W. Zimmer hereby declares under penalty of perjury: I am the Chief Financial Officer of Katy Industries, Inc., one of the debtors in these chapter 11 cases (the “Debtors”). In that capacity, I am familiar with the day-to-day operations, business affairs and books and records of the Debtors. I am authorized to submit this Declaration on behalf of the Debtors. 2, All statements in the Declaration are based on my personal knowledge, my review of the relevant documents, my discussions with other employees of the Debtors, or my opinion based upon my experience and knowledge of the Debtors’ operations and financial condition. If I were called upon to testify, l could and would testily to each of the facts set forth based on such personal knowledge, review of documents, discussions with other employees of the Debtors, or opinion. 3. To the best of my knowledge, all payroll taxes either withheld from employees’ or levied upon the Debtors’ have been timely remitted to the appropriate taxing authority. Dated: September 12, 2017 Respectfully By; Robert W. Zimmer Title: Chief Financial Officer
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Katy Industries, Inc., et al. Case No, 17-11101 (KJC) Debtors Reporting Period: July 1 to July 28, 2017 ACCOUNTS RECEIVABLE RECONCILIATION AND AGING Accounts Receivable Reconciliation Consolidated Contential Commercial Products, LLC Fort Wayne Plastics, Inc. Total Accounts Receivable at the beginning of the reporting period $ 8,901,216 $ 7,894,371 $ 1,006,845 + Amounts billed during the period 4,768,658 3,895,648 873,010 - Amounts collected during the period (4,344,905) (3,828,811) (516,094) +/- Adjustments-Sale of Assets (9,324,969) (7,961,208) (1,363,761) Total Accounts Receivable at the end of the reporting period $ $ Accounts Receivable Aging from invoice date 0 - 30 days old 31 - 60 days old 0 61 - 90 days old 91+ days old Total Accounts Receivable — $ Amount considered uncollectible (Bad Debt) 0 Accounts Receivable (Net) — DEBTOR QUESTIONNAIRE Must be completed each month Have any assets been sold or transferred outside the normal course of business this reporting period? if yes, provide an explanation below. Please see the General Notes. Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below. Have all post petition tax returns been timely filed? if no, provide an explanation below. Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below. The State of Missouri, Department of Labor and Industrial Relations, Division of Workers’ Compensation has called a default and terminated the Debtors’ self-insurance workers’ compensation plan previously maintained in Missouri in accordance with this Court’s interim order Dkt. No. 298, Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3, Pursuant to the terms of the Asset Purchase Agreement Mkt. No, 2951, the Debtors opened a bank account with Robobank to set aside funds for purposes of 503(b)(9) claims. On July 21. 2017. the sum of 5600.000 was denosited into the account. Y es/No Yes No Yes No Yes
