U.S. Dry Cleaning Services (FVCCQ) 8-K Regulation FD Disclosure

Exhibit 99.1

UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA

In re:	First Virtual Communications, Inc.	Case No.          05-30145-TEC and 05-30146-TEC
	and CUseeMe Netorks, Inc.
		CHAPTER 11
		AMENDED MONTHLY OPERATING REPORT
		(GENERAL BUSINESS CASE)

SUMMARY OF FINANCIAL STATUS

MONTH ENDED: Feb-05 PETITION DATE: 01/20/05

1. Debtor in possession (or trustee) hereby submits this Monthly Operating Report on the Accrual Basis of accounting (or if checked here     –  the Office of the U.S. Trustee or the Court has approved the Cash Basis of Accounting for the Debtor).
Dollars reported in    $1

2.	Asset and Liability Structure		End of Current Month			End of Prior Month		As of Petition Filing
	a. Current Assets		$	3,530,521		N/A
	b. Total Assets		$	5,794,521		N/A		$	5,234,654
	c. Current Liabilities		$	1,168,500		N/A
	d. Total Liabilities		$	7,311,802		N/A		$	6,143,302
								Cumulative
3.	Statement of Cash Receipts & Disbursements for Month		Current Month			Prior Month		(Case to Date)
	a. Total Receipts		$	1,133,000		N/A		$	1,133,000
	b. Total Disbursements		$	462,000		N/A		$	462,000
	c. Excess (Deficiency) of Receipts Over Disbursements (a - b)		$	671,000		N/A		$	671,000
	d. Cash Balance Beginning of Month		$	316,000		N/A		$	316,000
	e. Cash Balance End of Month (c + d)		$	987,000		N/A		$	987,000
								Cumulative
			Current Month			Prior Month		(Case to Date)
4.	Profit/(Loss) from the Statement of Operations	(	$	357,500	)	N/A	(	$	357,500	)
5.	Account Receivables (Pre and Post Petition)		$	1,808,000		N/A
6.	Post-Petition Liabilities		$	1,168,500		N/A
7.	Past Due Post-Petition Account Payables (over 30 days)		$	0		N/A

At the end of this reporting month:		Yes	No
8.	Have any payments been made on pre-petition debt, other than payments in the normal course to secured creditors or lessors? (if yes, attach listing including date of payment, amount of payment and name of payee)	Yes
9.	Have any payments been made to professionals? (if yes, attach listing including date of payment, amount of payment and name of payee)		No
10.	If the answer is yes to 8 or 9, were all such payments approved by the court?	Yes
11.	Have any payments been made to officers, insiders, shareholders, relatives? (if yes, attach listing including date of payment, amount and reason for payment, and name of payee)		Payroll & expense only
12.	Is the estate insured for replacement cost of assets and for general liability?		Yes
13.	Are a plan and disclosure statement on file?		No
14.	Was there any post-petition borrowing during this reporting period?	Yes
15.	Check if paid: Post-petition taxes Y ;                   U.S. Trustee Quarterly FeeN/A ; Check if filing is current for: Post-petition
	tax reporting and tax returns: Y .
	(Attach explanation, if post-petition taxes or U.S. Trustee Quarterly Fees are not paid current or if post-petition tax
	reporting and tax return filings are not current.)

I declare under penalty of perjury I have reviewed the above summary and attached financial statements, and after making reasonable inquiry believe these documents are correct.

Date:	4/7/2005 0:00	/s/ Jonathan G. Morgan
		Responsible Individual

STATEMENT OF OPERATIONS
(General Business Case)
For the Month Ended 02/28/05

Current Month							Cumulative	Next Month
Actual			Forecast	Variance			(Case to Date)	Forecast**
						Revenues:
$	534,000		N/A	N/A	1	Gross Sales	SAME
					2	less: Sales Returns & Allowances	SAME
$	534,000		N/A	N/A	3	Net Sales	SAME
$	4,000		N/A	N/A	4	less: Cost of Goods Sold            (Schedule ‘B’)	SAME
$	530,000		N/A	N/A	5	Gross Profit	SAME
$	1,000		N/A	N/A	6	Interest	SAME
$	1,000		N/A	N/A	7	Other Income:	SAME
					8
					9
$	532,000		N/A	N/A	10	Total Revenues	SAME
						Expenses:
$	58,000		N/A	N/A	11	Compensation to Owner(s)/Officer(s)	SAME
$	210,000		N/A	N/A	12	Salaries	SAME
			N/A	N/A	13	Commissions	SAME
$	29,000		N/A	N/A	14	Contract Labor	SAME
						Rent/Lease:
			N/A	N/A	15	Personal Property	SAME
$	95,000		N/A	N/A	16	Real Property	SAME
$	14,000		N/A	N/A	17	Insurance	SAME
			N/A	N/A	18	Management Fees	SAME
$	65,000		N/A	N/A	19	Depreciation	SAME
						Taxes:
$	24,000		N/A	N/A	20	Employer Payroll Taxes	SAME
			N/A	N/A	21	Real Property Taxes	SAME
			N/A	N/A	22	Other Taxes	SAME
$	15,000		N/A	N/A	23	Other Selling	SAME
$	124,000		N/A	N/A	24	Other Administrative	SAME
$	30,000		N/A	N/A	25	Interest	SAME
					26	Other Expenses:
					27
					28
					29
					30
					31
					32
					33
					34
$	664,000		N/A	N/A	35	Total Expenses	SAME
($	132,000	)	N/A	N/A	36	Subtotal	SAME
						Reorganization Items:
($	225,500	)	N/A	N/A	37	Professional Fees***	SAME
			N/A	N/A	38	Provisions for Rejected Executory Contracts	SAME
			N/A	N/A	39	Interest Earned on Accumulated Cash from	SAME
						Resulting Chp 11 Case
			N/A	N/A	40	Gain or (Loss) from Sale of Equipment	SAME
			N/A	N/A	41	U.S. Trustee Quarterly Fees	SAME
					42
($	225,500	)	N/A	N/A	43	Total Reorganization Items	SAME
($	357,500	)	N/A	N/A	44	Net Profit (Loss) Before Federal & State Taxes	SAME
			N/A	N/A	45	Federal & State Income Taxes	SAME
($	357,500	)	N/A	N/A	46	Net Profit (Loss)	SAME

Attach an Explanation of Variance to Statement of Operations (For variances greater than +/- 10% only):

**	Please see Exhibit 1 – Cash Flow Budget from Final Order Approving Debtor in Possession Financing, Docket Nos. 158, 162
***	Based on Debtors’ Cash Flow Budget. The Debtors have not received any invoices during the reporting period.

BALANCE SHEET
(General Business Case)
For the Month Ended 02/28/05

			From Schedules	Market Value
Assets
	Current Assets
1		Cash and cash equivalents - unrestricted		$	988,521
2		Cash and cash equivalents - restricted
3		Accounts receivable (net)	A	$	1,808,000
4		Inventory	B	$	0
5		Prepaid expenses		$	734,000
6		Professional retainers
7		Other:
8
9		Total Current Assets		$	3,530,521
	Property and Equipment (Market Value)
10		Real property	C	$	0
11		Machinery and equipment	D	$	1,267,000
12		Furniture and fixtures	D	$	0
13		Office equipment	D	$	953,000
14		Leasehold improvements	D	$	44,000
15		Vehicles	D	$	0
16		Other:	D
17			D
18			D
19			D
20			D
21		Total Property and Equipment		$	2,264,000
	Other Assets
22		Loans to shareholders
23		Loans to affiliates
24
25
26
27
28		Total Other Assets		$	0
29		Total Assets		$	5,794,521

     NOTE:The values listed above are at original cost.

Liabilities and Equity
(General Business Case)

	Liabilities From Schedules
		Post-Petition
			Current Liabilities
30				Salaries and wages			$	74,000
31				Payroll taxes			$	6,000
32				Real and personal property taxes
33				Income taxes
34				Sales taxes			$	1,000
35				Notes payable (short term)			$	750,000
36				Accounts payable (trade)	A		$	95,000
37				Real property lease arrearage			$	17,000
38				Personal property lease arrearage
39				Accrued professional fees*			$	225,500
40				Current portion of long-term post-petition debt (due within 12 months)
41				Other:
42
43
44				Total Current Liabilities			$	1,168,500
45			Long-Term Post-Petition Debt, Net of Current Portion
46				Total Post-Petition Liabilities			$	1,168,500
		Pre-Petition Liabilities (allowed amount)
47				Secured claims	F		$	4,071,029
48				Priority unsecured claims	F		$	379,429
49				General unsecured claims	F		$	1,692,844
50				Total Pre-Petition Liabilities			$	6,143,302
51				Total Liabilities			$	7,311,802
	Equity (Deficit)
52			Retained Earnings/(Deficit) at time of filing			(	$	138,812,000	)
53			Capital Stock
54			Additional paid-in capital				$	133,827,000
55			Cumulative profit/(loss) since filing of case			(	$	382,000	)
56			Post-petition contributions/(distributions) or (draws)				$	0
57							$	0
58			Market value adjustment				$	0
59				Total Equity (Deficit)		(	$	5,367,000	)
60	Total Liabilities and Equity (Deficit)						$	1,944,802

* Based on Debtors’ Cash Flow Budget, which is attached as Exhibit 1.

SCHEDULES TO THE BALANCE SHEET
(General Business Case)

Schedule A

Accounts Receivable and (Net) Payable

	Accounts Receivable		Accounts Payable		Past Due
	[Pre and Post Petition]		[Post Petition]		Post Petition Debt
Receivables and Payables Agings
0 -30 Days	$	0	$	95,000
31-60 Days	$	1,800,000	$	0
61-90 Days	$	8,000	$	0	$	0
91+ Days	$	1,480,000	$	0
Total accounts receivable/payable	$	3,288,000	$	95,000
Allowance for doubtful accounts	$	1,480,000
Accounts receivable (net)	$	1,808,000

Schedule B
Inventory/Cost of Goods Sold

Types and Amount of Inventory(ies)		Inventory(ies) Balance at End of Month	Cost of Goods Sold
			Inventory Beginning of Month
			Add -
Retail/Restaurants -			Net purchase
Product for resale			Direct labor
			Manufacturing overhead
Distribution -			Freight in
Products for resale			Other:
Manufacturer -
Raw Materials
Work-in-progress			Less -
Finished goods			Inventory End of Month
			Shrinkage
Other - Explain			Personal Use
			Cost of Goods Sold	$                                                                  0
TOTAL	$	0

Method of Inventory Control	Inventory Valuation Methods
Do you have a functioning perpetual inventory system?	Indicate by a checkmark method of inventory used.
Yes                      No
How often do you take a complete physical inventory?	Valuation methods -
	FIFO cost
Weekly	LIFO cost	—
Monthly	Lower of cost or market	—
Quarterly	Retail method	—
Semi-annually	Other	—
Annually	Explain	—

Date of last physical inventory was

Date of next physical inventory is

Schedule C
Real Property

		Cost		Market Value
Description
	Total	$	0	$	0

Schedule D
Other Depreciable Assets

		Cost		Market Value
Description Machinery & Equipment -
	Various network and computer equipment	$	1,267,000
	Total	$	1,267,000	$	0
Furniture & Fixtures -
		$	0
	Total	$	0	$	0
Office Equipment -
	Various office furnishings and supplies	$	953,000
	Total	$	953,000	$	0
Leasehold Improvements -
	Various improvements	$	44,000
	Total	$	44,000	$	0
Vehicles -
	Total	$	0	$	0

Schedule E
Aging of Post-Petition Taxes
(As of End of the Current Reporting Period)

	0-30 Days		31-60 Days		61-90 Days		91+ Days		Total
Taxes Payable Federal
Income Tax Withholding	$	0							$	0
FICA - Employee	$	0							$	0
FICA - Employer	$	0							$	0
Unemployment (FUTA)	$	0							$	0
Income	$	0							$	0
Other (Attach List)	$	0							$	0
Total Federal Taxes	$	0	$	0	$	0	$	0	$	0
State and Local
Income Tax Withholding	$	0							$	0
Unemployment (UT)	$	0							$	0
Disability Insurance (DI)	$	0							$	0
Empl. Training Tax (ETT)	$	0							$	0
Sales	$	0							$	0
Excise	$	0							$	0
Real property	$	0							$	0
Personal property	$	0							$	0
Income	$	0							$	0
Other (Attach List)	$	0							$	0
Total State & Local Taxes	$	0	$	0	$	0	$	0	$	0
Total Taxes	$	0	$	0	$	0	$	0	$	0

Schedule F
Pre-Petition Liabilities

	Claimed		Allowed
List Total Claims For Each Classification -	Amount		Amount (b)
Secured claims (a)	$	4,071,029	$	4,071,029
Priority claims other than taxes	$	379,429	$	379,429
Priority tax claims
General unsecured claims	$	1,692,844	$	1,692,844

(a)	List total amount of claims even it under secured.
(b)	Estimated amount of claim to be allowed after compromise or litigation. As an example, you are a defendant in a lawsuit alleging damage of $10,000,000 and a proof of claim is filed in that amount. You believe that you can settle the case for a claim of $3,000,000. For Schedule F reporting purposes you should list $10,000,000 as the Claimed Amount and $3,000,000 as the Allowed Amount.

Schedule G
Rental Income Information
Not applicable to General Business Cases

Schedule H
Recapitulation of Funds Held at End of Month

	Account 1		Account 2		Account 3		Account 4
Bank	SVB		SVB Securities		Morgan Stanley
Account Type	Checking		Investment		Investment
Account No.		350524370	88600741-1-4-ZGQ		14-78N08
Account Purpose	Operating		Investing		Investing
Balance, End of Month	$	987,000	$	0	$	1,521
Total Funds on Hand for all Accounts	$	988,521

Attach copies of the month end bank statement(s), reconciliation(s), and the check register(s) to the Monthly Operating Report.

STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
Increase/(Decrease) in Cash and Cash Equivalents
For the 40 Days Ended           02/28/05           

			Actual		Cumulative
			Current Month		(Case to Date)
Cash Receipts
1	Rent/Leases Collected
2	Cash Received from Sales		$	418,000	$	418,000
3	Interest Received
4	Borrowings		$	715,000	$	715,000
5	Funds from Shareholders, Partners, or Other Insiders
6	Capital Contributions
7
8
9
10
11
12		Total Cash Receipts	$	1,133,000	$	1,133,000
Cash Disbursements
13	Payments for Inventory
14	Selling
15	Administrative
16	Capital Expenditures
17	Principal Payments on Debt
18	Interest Paid		$	31,000	$	31,000
	Rent/Lease:
19		Personal Property
20		Real Property	$	96,000	$	96,000
	Amount Paid to Owner(s)/Officer(s)
21		Salaries	$	58,000	$	58,000
22		Draws
23		Commissions/Royalties
24		Expense Reimbursements	$	4,000	$	4,000
25		Other
26	Salaries/Commissions (less employee withholding)		$	154,000	$	154,000
27	Management Fees
	Taxes:
28		Employee Withholding	$	41,000	$	41,000
29		Employer Payroll Taxes	$	22,000	$	22,000
30		Real Property Taxes
31		Other Taxes
32	Other Cash Outflows:
33		Consultant Retainer	$	24,000	$	24,000
34		Lender Expenses	$	32,000	$	32,000
35
36
37
38		Total Cash Disbursements:	$	462,000	$	462,000
39	Net Increase (Decrease) in Cash		$	671,000	$	671,000
40	Cash Balance, Beginning of Period		$	316,000	$	316,000
41	Cash Balance, End of Period		$	988,521	$	988,521