EXHIBIT 99.11
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
CORPUS CHRISTI DIVISION
CASE NAME: ERLY Industries, Inc. Petition Date: 09/28/98
CASE NUMBER: 98-21515-C-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH ENDING JULY 31, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
MONTH OCTOBER, NOVEMBER, DECEMBER, JANUARY, FEBRUARY, MARCH, APRIL, MAY, JUNE, JULY,
1998 1998 1998 1999 1999 1999 1999 1999 1999 1999
- -----------------------------------------------------------------------------------------------------------------------------------
REVENUES (MOR-6) $40,000 $40,000 $40,000 $ 40,000 $40,000 $ 40,000 $ 0 $280,000 $220,000 $ 0
INCOME(LOSS) BEFORE INT,DEPR/TAX
(MOR-6) $15,384 ($18,756) ($59,371) ($9,334) $11,681 ($118,870) ($152,737) $105,997 $ 18,584 ($100,960)
NET INCOME(LOSS) (MOR-6) $15,384 ($18,756) ($59,371) ($9,334) $11,681 ($118,870) ($152,737) $105,997 $ 18,584 ($100,960)
PAYMENTS TO INSIDERS (MOR-9) $13,000 $41,200 $12,873 $ 24,962 $24,961 $ 24,962 $ 26,442 $ 24,962 $ 24,962 $ 24,423
PAYMENTS TO PROFESSIONALS (MOR-9) $ 6,201 $ 2,562 $ 0 $ 36,360 $ 0 $133,309 $ 0 $133,356 $151,795 $ 4,870
TOTAL DISBURSEMENTS (MOR-8) $ 4,048 $64,154 $61,053 $116,910 $85,755 $158,139 $193,643 $184,402 $195,302 $ 73,240
- -----------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED Are all accounts receivable being collected within terms? Unknown See attachment
------- --------------
AS OF SIGNATURE DATE EXPIR Are all post-petition liabilities, including taxes, being paid within terms? Yes
---
DATE Have any pre-petition liabilities been paid? No If so, describe
- --------------------------------------- --
CASUALTY YES ( ) NO (X) NA
LIABILITY YES (X) NO ( ) 06/01/99 Are all funds received being deposited into DIP bank account? Yes
---
VEHICLE YES ( ) NO (X) NA Were any assets disposed of outside of the normal course of business? No
--
WORKERS YES (X) NO ( ) 02/01/00 If so, describe.
OTHER -
FOREIGN PACK. YES ( ) NO (x) Are all U. S. Trustee quarterly fee payments current? Yes
---
What is the status of your Plan of Reorganization? In Process - Pending
--------------------
- ---------------------------------------
- ---------------------------------------
ATTORNEY NAME: Matthew Rosenstein, Esq.
FIRM: I certify under penalty of perjury that the following complete
ADDRESS: N Carancahua, # 420 Monthly Operating Report (MOR), consisting of MOR-1 through
ADDRESS: MOR-9 plus attachments, are true and correct except that the
CITY, STATE,
ZIP Corpus Christi, TX 78475 information on MOR-2 and MOR-3 was obtained from the former
TELEPHONE: 512-883-5577 company controller acting as a consultant. I make no claim as to
accuracy of that information.
- ---------------------------------------
SIGNED: /s/ Nanette N. Kelley
---------------------
Nanette N. Kelley
TITLE: President
---------------------
MOR 1
CASE NAME: ERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
COMPARATIVE BALANCE SHEETS
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS FILING DATE*
09/28/1998 OCTOBER, 1998 NOVEMBER, 1998 DECEMBER, 1998 JANUARY, 1999 FEBRUARY, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
CASH $ 141,972 $ 139,572 $ 177,758 $ 135,201 $ 140,722 $ 124,049
ACCOUNTS RECEIVABLE, NET 241,322 241,322 241,322 238,544 238,544 235,463
INVENTORY: LOWER OF COST OR MARKET 0 0 0 0 0 $ 0
PREPAID EXPENSES 39,239 39,239 51,239 39,239 39,239 39,239
INVESTMENTS 0 0 0 0 0 0
OTHER 71,173 111,173 58,240 93,529 54,359 52,004
---------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 493,706 531,306 528,559 506,513 472,864 450,755
---------------------------------------------------------------------------------------
PROPERTY, PLANT& EQUIP, @ COST 11,617,497 11,617,497 11,617,497 11,617,497 11,617,497 11,617,497
LESS ACCUMULATED DEPRECIATION (3,129,697) (3,129,697) (3,129,697) (3,129,697) (3,129,697) (3,129,697)
NET BOOK VALUE OF PP&E 8,487,800 8,487,800 8,487,800 8,487,800 8,487,800 8,487,800
OTHER ASSETS:
TAX DEPOSITS 0 0 0 0 0 0
INVESTMENTS IN SUBS (66,884,551) (66,884,551) (66,884,551) (66,884,551) (66,884,551) (66,884,551)
DEFERRED BOND COSTS, NET 78,375 78,375 78,375 78,375 78,375 78,375
---------------------------------------------------------------------------------------
TOTAL ASSETS ($57,824,670) ($57,787,070) ($57,789,817) ($57,811,863) ($57,845,512) ($57,867,621)
=======================================================================================
- -------------------------------------------------------------------------------------------------------------------
ASSETS MARCH, 1999 APRIL, 1999 MAY, 1999 JUNE, 1999 JULY, 1999
- -------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
CASH $ 7,082 $ 170,402 $ 272,422 $ 297,120 $ 223,880
ACCOUNTS RECEIVABLE, NET 235,463 235,463 235,463 235,463
INVENTORY: LOWER OF COST OR MARKET $ 0 $ 0 $ 0 $ 0 $ 0
PREPAID EXPENSES 39,239 39,239 39,239 39,239 39,239
INVESTMENTS 0 0 0 0 0
OTHER 52,003 (259,747) (259,747) (259,747) (259,747)
------------------------------------------------------------------------
TOTAL CURRENT ASSETS 333,788 185,358 287,378 312,076 238,836
------------------------------------------------------------------------
PROPERTY, PLANT& EQUIP, @ COST 11,617,497 11,617,497 11,617,497 11,617,497 11,617,497
LESS ACCUMULATED DEPRECIATION (3,129,697) (3,129,697) (3,129,697) (3,129,697) (3,129,697)
NET BOOK VALUE OF PP&E 8,487,800 8,487,800 8,487,800 8,487,800 8,487,800
OTHER ASSETS:
TAX DEPOSITS 0 0 0 0 0
INVESTMENTS IN SUBS (66,884,551) (66,884,551) (66,884,551) (66,884,551) (66,884,551)
DEFERRED BOND COSTS, NET 78,375 78,375 78,375 78,375 78,375
------------------------------------------------------------------------
TOTAL ASSETS ($57,984,588) ($58,133,018) ($58,030,998) ($58,006,300) ($58,079,540)
========================================================================
MOR 2
CASE NAME: ERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
COMPARATIVE BALANCE SHEETS
- -----------------------------------------------------------------------------------------------------------------------------------
FILING DATE*
LIABILITIES & OWNERS EQUITY 09/28/1998 OCTOBER, 1998 NOVEMBER, 1998 DECEMBER, 1998 JANUARY, 1999 FEBRUARY, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) $ 0 $ 22,216 $ 38,225 $ 75,550 $ 51,235 $ 17,445
-------------------------------------------------------------------------------------------
PRE-PETITION LIABILITIES:
NOTES PAYABLE - SECURED $ 6,102,725 $ 6,102,725 $ 6,102,725 $ 6,102,725 $ 6,102,725 $ 6,102,725
PRIORITY DEBT 0 0 0 0 0 0
FEDERAL INCOME TAX 1,864,285 1,864,285 1,864,285 1,864,285 1,864,285 1,864,285
FICA/WITHHOLDING 0 0 0 0 0 0
UNSECURED DEBT 1,167,204 1,167,204 1,167,204 1,167,204 1,167,204 1,167,204
OTHER - INTERCO PAYABLES 13,193,230 13,193,230 13,193,230 13,193,230 13,193,230 13,193,230
-------------------------------------------------------------------------------------------
TOTAL LIABILITIES 22,327,444 22,349,660 22,365,669 22,402,994 22,378,679 22,344,889
-------------------------------------------------------------------------------------------
OWNER'S EQUITY (DEFICIT)
PREFERRED STOCK 0 0 0 0 0 0
COMMON STOCK 57,621 57,621 57,621 57,621 57,621 57,621
ADDITIONAL PAID-IN CAPITAL 33,070,204 33,070,204 33,070,204 33,070,204 33,070,204 33,070,204
RETAINED EARNINGS: FILING DATE (113,279,939) (113,279,939) (113,279,939) (113,279,939) (113,279,939) (113,279,939)
RETAINED EARNINGS: POST FILING DATE 0 15,384 (3,372) (62,743) (72,077) (60,396)
TOTAL OWNER'S EQUITY (NET WORTH) (80,152,114) (80,136,730) (80,155,486) (80,214,857) (80,224,191) (80,212,510)
-------------------------------------------------------------------------------------------
TOTAL LIABILITIES & OWNER'S EQUITY ($57,824,670) ($57,787,070) ($57,789,817) ($57,811,863) ($57,845,512) ($57,867,621)
-------------------------------------------------------------------------------------------
COMPARATIVE BALANCE SHEETS
- --------------------------------------------------------------------------------------------------------------------
LIABILITIES & OWNERS EQUITY MARCH, 1999 APRIL, 1999 MAY, 1999 JUNE, 1999 JULY, 1999
- --------------------------------------------------------------------------------------------------------------------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) $ 19,248 $ 23,555 $ 19,578 $ 25,692 $ 53,412
----------------------------------------------------------------------------
PRE-PETITION LIABILITIES:
NOTES PAYABLE - SECURED $ 6,102,725 $ 6,102,725 $ 6,102,725 $ 6,102,725 $ 6,102,725
PRIORITY DEBT 0 0 0 0 0
FEDERAL INCOME TAX 1,864,285 1,864,285 1,864,285 1,864,285 1,864,285
FICA/WITHHOLDING 0 0 0 0 0
UNSECURED DEBT 1,167,204 1,167,204 1,167,204 1,167,204 1,167,204
OTHER - INTERCO PAYABLES 13,193,230 13,193,230 13,193,230 13,193,230 13,193,230
----------------------------------------------------------------------------
TOTAL LIABILITIES 22,346,692 22,350,999 22,347,022 22,353,136 22,380,856
----------------------------------------------------------------------------
OWNER'S EQUITY (DEFICIT)
PREFERRED STOCK 0 0 0 0 0
COMMON STOCK 57,621 57,621 57,621 57,621 57,621
ADDITIONAL PAID-IN CAPITAL 33,070,204 33,070,204 33,070,204 33,070,204 33,070,204
RETAINED EARNINGS: FILING DATE (113,279,939) (113,279,939) (113,279,939) (113,279,939) (113,279,939)
RETAINED EARNINGS: POST FILING DATE (179,166) (331,903) ($225,906) ($207,322) ($308,282)
TOTAL OWNER'S EQUITY (NET WORTH) (80,331,280) (80,484,017) (80,378,020) (80,359,436) (80,460,396)
----------------------------------------------------------------------------
TOTAL LIABILITIES & OWNER'S EQUITY ($57,984,588) ($58,133,018) ($58,030,998) ($58,006,300) ($58,079,540)
============================================================================
MOR 3
CASE NAME: ERLY INDUSTRIES, INC. CASE NUMBER: 98-21515-C-11
SCHEDULE OF POST-PETITION LIABILITIES
-----------------------------------------------------------------------------------------------------------------------------
OCTOBER, NOVEMBER, DECEMBER, JANUARY, FEBRUARY, MARCH, APRIL, MAY, JUNE, JULY,
1998 1998 1998 1999 1999 1999 1999 1999 1999 1999
-----------------------------------------------------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 3,015 $ 20,749 $ 18,564 $ 47,722 $ 16,617 $ 18,143 $ 23,279 $ 19,026 $ 24,864 $ 53,136
TAX PAYABLE
FEDERAL PAYROLL TAXES $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
STATE PAYROLL & SALES TAXES 0 276 553 552 828 1,105 276 552 828 276
AD VALOREM TAXES 0 0 0 0 0 0 0 0 0 0
OTHER TAXES 0 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------
TOTAL TAXES PAYABLE 0 276 553 552 828 1,105 276 552 828 276
------------------------------------------------------------------------------------------
SECURED DEBT POST-PETITION 0 0 0 0 0 0 0 0 0 0
ACCRUED INTEREST PAYABLE 0 0 0 0 0 0 0 0 0 0
ACCRUED PROFESSIONAL FEES: (MOR-9)* 6,201 0 36,360 0 0 0 0 0 0 0
OTHER ACCRUED LIABILITIES: 0 0 0 0 0 0 0
1 DIRECTOR'S FEES (MOR-9) 3,000 0 0 0 0 0 0 0 0 0
2 ACCRUED PAYROLL FOR NNK (MOR-9) 10,000 10,000 10,000 0 0 0 0 0 0 0
3 ACCRUED OFFICER - CONTRACT (WR) 0 7,200 10,073 2,961 0 0 0 0 0 0
------------------------------------------------------------------------------------------
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 22,216 $ 38,225 $ 75,550 $ 51,235 $ 17,445 $ 19,248 $ 23,555 $ 19,578 $ 25,692 $ 53,412
==========================================================================================
MOR 4
CASE NAME: ERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
AGING OF POST-PETITION LIABILITIES
----------------------------------
JULY, 1999
----------
- ------------------------------------------------------------------------------------------------------------
AD-VALOREM &
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
- ------------------------------------------------------------------------------------------------------------
0-30 $ 53,412 $ 53,136 $ 0 $ 276 $ 0
31-60 $ 0 0 0 0 $ 0 0
61-90 $ 0 0 0 0 0 0
91+ $ 0 0 0 0 0 0
----------------------------------------------------------------------------------------------
TOTAL $ 53,412 $ 53,136 $ 0 $ 276 $ 0 $ 0
==============================================================================================
AGING OF ACCOUNTS RECEIVABLE
----------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
MONTH OCTOBER, 1998 NOVEMBER, 1998 DECEMBER, 1998 JANUARY, 1999 FEBRUARY, 1999 MARCH, 1999 APRIL, 1999 MAY, 1999
- ------------------------------------------------------------------------------------------------------------------------------------
0-30 DAYS $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
31-60 DAYS $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
61-90 DAYS $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
91+ DAYS $241,322 $241,322 $238,544 $238,544 $235,463 $235,463 $235,463 $235,463
---------------------------------------------------------------------------------------------------------------------
TOTAL $241,322 $241,322 $238,544 $238,544 $235,463 $235,463 $235,463 $235,463
=====================================================================================================================
- ---------------------------------------------
MONTH JUNE, 1999 JULY, 1999
- ---------------------------------------------
0-30 DAYS $ 0 $ 0
31-60 DAYS $ 0 $ 0
61-90 DAYS $ 0 $ 0
91+ DAYS $235,463 $235,463
-------------------------------
TOTAL $235,463 $235,463
===============================
MOR-5
CASE NAME: ERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
STATEMENT OF INCOME OR (LOSS)
- ----------------------------------------------------------------------------------------------------------------------------------
MONTH OCTOBER, 1998 NOVEMBER, 1998 DECEMBER, 1998 JANUARY, 1999 FEBRUARY, 1999 MARCH, 1999
- ----------------------------------------------------------------------------------------------------------------------------------
REVENUES (MOR-1) $40,000 $40,000 $40,000 $ 40,000 $40,000 $ 40,000
TOTAL COST OF REVENUES 0 0 0 0 0 0
----------------------------------------------------------------------------------------
GROSS PROFIT $40,000 $40,000 $40,000 $ 40,000 $40,000 $ 40,000
----------------------------------------------------------------------------------------
OPERATING EXPENSES:
SELLING & MARKETING $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
GENERAL & ADMINISTRATIVE 5,415 26,229 38,903 24,372 3,358 20,499
INSIDERS COMPENSATION 13,000 29,965 24,108 24,962 24,961 24,962
PROFESSIONAL FEES 6,201 2,562 36,360 0 0 113,309
OTHER (attach list) SEE FOOTNOTES 0 0 0 0 0 0
----------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 24,616 58,756 99,371 49,334 28,319 158,770
----------------------------------------------------------------------------------------
INCOME BEFORE INT,DEPR/TAX (MOR-1) $15,384 ($18,756) ($59,371) ($9,334) $11,681 ($118,770)
----------------------------------------------------------------------------------------
INTEREST EXPENSE 0 0 0 0 0 0
DEPRECIATION 0 0 0 0 0 0
OTHER(INCOME)EXPENSE(MOR-10) 0 0 0 0 0 0
OTHER ITEMS(MOR-10) 0 0 0 0 0 0
----------------------------------------------------------------------------------------
TOTAL INT.DEPR&OTHER ITEMS $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
----------------------------------------------------------------------------------------
NET INCOME BEFORE TAXES $15,384 ($18,756) ($59,371) ($9,334) $11,681 ($118,770)
----------------------------------------------------------------------------------------
FEDERAL INCOME TAXES $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
----------------------------------------------------------------------------------------
NET INCOME (LOSS) (MOR-1) $15,384 ($18,756) ($59,371) ($9,334) $11,681 ($118,770)
========================================================================================
- ---------------------------------------------------------------------------------------------------------------------------------
MONTH APRIL, 1999 MAY, 1999 JUNE, 1999 JULY, 1999 FILING TO DATE
- ---------------------------------------------------------------------------------------------------------------------------------
REVENUES (MOR-1) $ 0 $280,000 $220,000 $ 0 $ 740,000
TOTAL COST OF REVENUES 0 0 0 0 $ 0
-----------------------------------------------------------------------------------------
GROSS PROFIT $ 0 $280,000 $220,000 $ 0 $ 740,000
-----------------------------------------------------------------------------------------
OPERATING EXPENSES:
SELLING & MARKETING $ 0 $ 0 $ 0 $ 0 $ 0
GENERAL & ADMINISTRATIVE 126,295 15,685 23,349 69,126 $ 353,231
INSIDERS COMPENSATION 26,442 24,962 24,962 24,423 $ 242,747
PROFESSIONAL FEES 0 133,356 153,105 7,411 $ 452,303
OTHER (attach list) SEE FOOTNOTES 0 0 0 0 $ 0
-----------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 152,737 174,003 201,416 100,960 1,048,282
-----------------------------------------------------------------------------------------
INCOME BEFORE INT,DEPR/TAX (MOR-1) ($152,737) $105,997 $ 18,584 ($100,960) ($308,282)
-----------------------------------------------------------------------------------------
INTEREST EXPENSE 0 0 0 0 $ 0
DEPRECIATION 0 0 0 0 $ 0
OTHER(INCOME)EXPENSE(MOR-10) 0 0 0 0 $ 0
OTHER ITEMS(MOR-10) 0 0 0 0 $ 0
-----------------------------------------------------------------------------------------
TOTAL INT.DEPR&OTHER ITEMS $ 0 $ 0 $ 0 $ 0 $ 0
-----------------------------------------------------------------------------------------
NET INCOME BEFORE TAXES ($152,737) $105,997 $ 18,584 ($100,960) ($308,282)
-----------------------------------------------------------------------------------------
FEDERAL INCOME TAXES $ 0 $ 0 $ 0 $ 0 $ 0
-----------------------------------------------------------------------------------------
NET INCOME (LOSS) (MOR-1) ($152,737) $105,997 $ 18,584 ($100,960) ($308,282)
=========================================================================================
MOR-6
CASE NAME: ERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
------------------------------------------------------------------------------------------------------------------------------
CASH RECEIPTS AND OCTOBER, NOVEMBER, DECEMBER, JANUARY, FEBRUARY,
DISBURSEMENTS 1998 1998 1998 1999 1999
---------------------------------------------------------------------------------------------------------------------------
1 CASH - BEGINNING OF MONTH $141,972 $139,572 $177,758 $135,201 $140,722
-------------------------------------------------------------------------------
RECEIPTS:
2 CASH SALES $ 0 $ 0 $ 0 $ 0 $ 0
3 COLLECTION OF ACCOUNTS RECEIVABLE 0 100,000 9,845 80,000 43,081
4 LOANS & ADVANCES 0 0 0 0 0
5 SALE OF ASSETS 0 0 0 0 0
6 OTHER (attach list) 1,648 2,340 8,651 47,431 26,002
-------------------------------------------------------------------------------
TOTAL RECEIPTS 1,648 102,340 18,496 127,431 69,083
-------------------------------------------------------------------------------
DISBURSEMENTS:
7 NET PAYROLL 0 6,896 6,896 23,900 6,913
8 PAYROLL TAXES PAID 0 3,593 3,593 7,760 3,575
9 SALES, USE & OTHER TAXES PAID 0 0 0 10 0
10 SECURED/RENTAL/LEASES 0 0 0 5,625 0
11 UTILITIES 0 0 0 0 0
12 INSURANCE 1,996 10,157 13,359 12,945 12,564
13 INVENTORY PURCHASES 0 0 0 0 0
14 VEHICLE EXPENSE 0 0 0 0 0
15 TRAVEL & ENTERTAINMENT 0 90 2,722 1,845 0
16 REPAIRS, MAINTENANCE & SUPPLIES 0 0 0 0 0
17 ADMINISTRATIVE & SELLING 1,222 867 32,588 15,715 18,817
18 OTHER(attach list) 0 33,538 0 17,000 43,887
-------------------------------------------------------------------------------
TOTAL DISBURSEMENTS FROM OPERATIONS 3,218 55,141 59,158 84,800 85,756
-------------------------------------------------------------------------------
19 PROFESSIONAL FEES 0 8,763 0 36,360 0
20 U.S. TRUSTEE FEES 0 250 0 750 0
21 OTHER REORGANIZATION EXPENSES (attach list) 830 0 1,895 0 0
-------------------------------------------------------------------------------
TOTAL DISBURSEMENTS $ 4,048 $ 64,154 $ 61,053 $121,910 $ 85,756
-------------------------------------------------------------------------------
22 NET CASH FLOW (2,400) 38,186 (42,557) 5,521 (16,673)
===============================================================================
23 CASH - END OF MONTH (MOR-2) $139,572 $177,758 $135,201 $140,722 $124,049
===============================================================================
--------------------------------------------------------------------------------------------------------------------------
CASH RECEIPTS AND
DISBURSEMENTS MARCH, 1887 APRIL, 1999 MAY, 1999 JUNE, 1999 JULY, 1999
--------------------------------------------------------------------------------------------------------------------------
1 CASH - BEGINNING OF MONTH $124,049 $ 7,082 $170,402 $272,422 $297,120
---------------------------------------------------------------------------
2 CASH SALES $ 0 $ 0 $ 0 $ 0 $ 0
3 COLLECTION OF ACCOUNTS RECEIVABLE 40,000 351,751 0 0 0
4 LOANS & ADVANCES 0 360 0 0 0
5 SALE OF ASSETS 0 0 0 0 0
6 OTHER (attach list) 1,172 4,853 286,422 220,000 0
---------------------------------------------------------------------------
TOTAL RECEIPTS 41,172 356,963 286,422 220,000 0
---------------------------------------------------------------------------
DISBURSEMENTS:
7 NET PAYROLL 6,913 6,913 6,913 6,913 7,372
8 PAYROLL TAXES PAID 3,575 4,736 3,575 3,575 4,111
9 SALES, USE & OTHER TAXES PAID 0 0 0 0 13
10 SECURED/RENTAL/LEASES 0 0 0 0 0
11 UTILITIES 0 0 0 0 0
12 INSURANCE 3,760 107,915 1,618 483 0
13 INVENTORY PURCHASES $ 0 $ 0 $ 0 $ 0 $ 0
14 VEHICLE EXPENSE 0 0 0 0 0
15 TRAVEL & ENTERTAINMENT 1,575 0 0 0 0
16 REPAIRS, MAINTENANCE & SUPPLIES 0 0 0 0 0
17 ADMINISTRATIVE & SELLING 16,095 18,328 23,294 19,940 39,668
18 OTHER(attach list) 12,000 52,000 12,000 12,000 12,000
---------------------------------------------------------------------------
TOTAL DISBURSEMENTS FROM OPERATIONS 43,919 189,893 47,401 42,912 63,164
---------------------------------------------------------------------------
19 PROFESSIONAL FEES 113,309 0 133,356 151,795 4,870
20 U.S. TRUSTEE FEES 912 3,750 3,645 595 5,206
21 OTHER REORGANIZATION EXPENSES (attach list) 0 0 0 0 0
---------------------------------------------------------------------------
TOTAL DISBURSEMENTS $158,139 $193,643 $184,402 $195,303 $ 73,240
---------------------------------------------------------------------------
22 NET CASH FLOW (116,967) 163,320 102,020 24,697 (73,240)
===========================================================================
23 CASH - END OF MONTH (MOR-2) $ 7,082 $170,402 $272,422 $297,120 $223,880
===========================================================================
CASH ACCOUNT RECONCILIATION
MONTH OF JULY 1999
- -------------------------------------------------------------------------------
BANK NAME UNION PLANTERS BANK OF BANK OF BANK ONE,
BANK AMERICA AMERICA ARIZONA, NA
-------------------------------------------------------------------------------
ACCOUNT NUMBER 9500013041 00991-06046 03445-09141 2357-0372
-------------------------------------------------------------------------------
ACCOUNT TYPE OPERATING PAYROLL OPERATING OPERATING
-------------------------------------------------------------------------------
BANK BALANCE $227,849 CLOSED CLOSED CLOSED
DEPOSIT IN TRANSIT 0 0 0 0
OUTSTANDING CHECKS 3,968 0 0 0
===============================================================================
ADJUSTED BANK BALANCE $ 0 $0 $0 $0
===============================================================================
BEGINNING CASH - PER BOOKS $297,120 $0 $0 $0
RECEIPTS 0 0 0
TRANSFER BETWEEN ACCOUNTS 0 0 0 0
CHECKS/OTHER DISBURSEMENTS 73,240 0 0 0
===============================================================================
ENDING CASH - PER BOOKS $ 0 $0 $0 $0
===============================================================================
------------------------------------------------------
BANK NAME WELLS FARGO PETTY CASH TOTAL
------------------------------------------------------
ACCOUNT NUMBER 4311854350 NA
------------------------------------------------------
ACCOUNT TYPE OPERATING NA
------------------------------------------------------
BANK BALANCE CLOSED CLOSED 227,849
DEPOSIT IN TRANSIT 0
OUTSTANDING CHECKS 3,968
======================================================
ADJUSTED BANK BALANCE $0 $0 $0
======================================================
BEGINNING CASH - PER BOOKS $0 $0 297,120
RECEIPTS 0 0 0
TRANSFER BETWEEN ACCOUNTS 0 0 0
CHECKS/OTHER DISBURSEMENTS 0 0 73,240
======================================================
ENDING CASH - PER BOOKS $0 $0 $0
======================================================
CASE NERLY Industries, Inc. CASE NUMBER: 98-31516-C-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
-------------------------------------------------------------------------------------------------------------------
INSIDERS: NAME/POSITION/ OCTOBER, NOVEMBER, DECEMBER, JANUARY, FEBRUARY,
COMP TYPE 1998 1998 1998 1999 1999
-------------------------------------------------------------------------------------------------------------------
1 EUGENE CAFIERO/DIRECTOR/FEES 3,000 6,000 0 3,000 3,000
2 NANETTE KELLEY/PRES/SALARY 10,000 10,000 10,000 10,000 10,000
3 WENDY REEVES/ASSTSEC/CONTRACT 7,200 2,873 2,962 2,961
KIM GOMEZ/ASSTSEC/CONTRACT
4 BERYL ANTHONY /DIRECTOR/FEES 6,000 0 3,000 3,000
5 BILL BLAKE/DIRECTOR/FEES 6,000 0 3,000 3,000
6 PETE SEALE, JR./DIRECTOR/FEES 6,000 0 3,000 3,000
7
8
-------------------------------------------------------------------------------
TOTAL INSIDERS (MOR-1) $13,000 $41,200 $12,873 $24,962 $24,961
===============================================================================
------------------------------------------------------------------------------------------------------------------
INSIDERS: NAME/POSITION/
COMP TYPE MARCH, 1999 APRIL, 1999 MAY, 1999 JUNE, 1999 JULY, 1999
------------------------------------------------------------------------------------------------------------------
1 EUGENE CAFIERO/DIRECTOR/FEES 3,000 3,000 3,000 3,000 3,000
2 NANETTE KELLEY/PRES/SALARY 10,000 10,000 10,000 10,000 10,000
3 WENDY REEVES/ASSTSEC/CONTRACT 2,962 4,442 2,962 2,962 0
KIM GOMEZ/ASSTSEC/CONTRACT 2,423
4 BERYL ANTHONY /DIRECTOR/FEES 3,000 3,000 3,000 3,000 3,000
5 BILL BLAKE/DIRECTOR/FEES 3,000 3,000 3,000 3,000 3,000
6 PETE SEALE, JR./DIRECTOR/FEES 3,000 3,000 3,000 3,000 3,000
7
8
-------------------------------------------------------------------------------
TOTAL INSIDERS (MOR-1) $24,962 $26,442 $24,962 $24,962 $24,423
===============================================================================
------------------------------------------------------------------------------------------------------------------
PROFESSIONALS NAME/ OCTOBER, NOVEMBER, DECEMBER, JANUARY, FEBRUARY,
ORDER DATE 1998 1998 1998 1999 1999
------------------------------------------------------------------------------------------------------------------
1 THOMAS WHITLOCK 6,201 0 0 6,014 0
2 MATTHEW ROSENSTEIN 0 2,562 0 30,346 0
3 HUGHES & LUCE, LLP 0 0 0 0 0
4 PETERSON WORLDWIDE 0 0 0 0 0
5 MIKE BOUDLOCHE 0 0 0 0 0
6 WALLACE & WHEELER 0 0 0 0 0
7
8
-------------------------------------------------------------------------------
TOTAL PROFESSIONALS (MOR-1) $6,201 $2,562 $0 $36,360 $0
===============================================================================
------------------------------------------------------------------------------------------------------------------
PROFESSIONALS NAME/
ORDER DATE MARCH, 1999 APRIL, 1999 MAY, 1999 JUNE, 1999 JULY, 1999
------------------------------------------------------------------------------------------------------------------
1 THOMAS WHITLOCK 2,208 0 1,769 1,686 4,870
2 MATTHEW ROSENSTEIN 50,158 0 59,001 38,309 0
3 HUGHES & LUCE, LLP 60,943 0 0 100,237 0
4 PETERSON WORLDWIDE 0 0 61,878 0 0
5 MIKE BOUDLOCHE 0 0 10,708 0 0
6 WALLACE & WHEELER 0 0 0 11,563 0
7
8
-------------------------------------------------------------------------------
TOTAL PROFESSIONALS (MOR-1) $113,309 $0 $133,356 $151,795 $4,870
===============================================================================
CASE NERLY Industries, Inc. CASE NUMBER:98-31516-C-11
FOOTNOTES TO MOR SCHEDULES
JULY, 1999
MOR REF:
MOR-1
MOR-2
MOR-3
MOR-4
MOR-5
1 RICHARD McCOMBS - OPTION ON STOCK PURCHASE -STOCK HELD AS SECURITY $ 41,322
2 THE BEVERAGE SOURCE - EST OF DEPOSIT ON ENVIRONMENT CLEANUP $194,141
------------
TOTAL ACCOUNTS RECEIVABLE $235,463
============
MOR-6
MOR-7
1 DIRECTORS' FEES $ 12,000
------------
TOTAL OF LINE 18 $ 12,000
============
MOR-8
MOR-9