EXHIBIT 99.2
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 OCTOBER 31, 1998
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MONTH OCTOBER, 1998
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REVENUES (MOR-6) $0
INCOME(LOSS) BEFORE INT,DEPR/TAX (MOR-6) ($24,616)
NET INCOME(LOSS) (MOR-6) ($24,616)
PAYMENTS TO INSIDERS (MOR-9) $13,000
PAYMENTS TO PROFESSIONALS (MOR-9) $6,201
TOTAL DISBURSEMENTS (MOR-8) $4,048
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REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE EXPIR
DATE
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CASUALTY YES ( ) NO (X) NA
LIABILITY YES (X) NO ( ) 04/01/99
VEHICLE YES ( ) NO (X) NA
WORKERS YES (X) NO ( ) 02/01/99
OTHER - FOREIGN PACK. YES (X) NO ( ) 04/01/99
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- -------------------------------------------------------------
ATTORNEY NAME: Matthew Rosenstein, Esq.
FIRM:
ADDRESS: 711 N Carancahua, # 420
ADDRESS:
CITY, STATE, ZIP Corpus Christi, TX 78475
TELEPHONE: 512-883-5577
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Are all accounts receivable being collected within terms? Unknown See attachment
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Are all post-petition liabilities, including taxes, being paid within terms? Yes
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Have any pre-petition liabilities been paid? No If so, describe
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Are all funds received being deposited into DIP bank account? Yes
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Were any assets disposed of outside of the normal course of business? No
--
If so, describe.
Are all U. S. Trustee quarterly fee payments current? Yes
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What is the status of your Plan of Reorganization? In Process - Pending
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I certify under penalty of perjury that the following complete
Monthly Operating Report (MOR), consisting of MOR-1 through
MOR-9 plus attachments, are true and correct except that the
information on MOR-2 and MOR-3 was obtained from the former
company controller acting as a consultant. I make no claim as to
accuracy of that information.
SIGNED: /s/ Nanette N. Kelley
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Nanette N. Kelley
TITLE: President
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MOR-1
CASE NAME: ERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
COMPARATIVE BALANCE SHEETS
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ASSETS FILING DATE*
09/28/1998 OCTOBER, 1998
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CURRENT ASSETS
CASH $141,972 $139,572
ACCOUNTS RECEIVABLE, NET 241,322 241,322
INVENTORY: LOWER OF COST OR MARKET $0 $0
PREPAID EXPENSES 39,239 39,239
INVESTMENTS 0 0
OTHER 71,173 71,173
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TOTAL CURRENT ASSETS 493,706 491,306 0 0 0 0
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PROPERTY, PLANT& EQUIP, @ COST 11,617,497 11,617,497
LESS ACCUMULATED DEPRECIATION (3,129,697) (3,129,697)
NET BOOK VALUE OF PP&E 8,487,800 8,487,800 0 0 0 0
OTHER ASSETS:
TAX DEPOSITS 0 0
INVESTMENTS IN SUBS (66,884,551) (66,884,551)
DEFERRED BOND COSTS, NET 78,375 78,375
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TOTAL ASSETS ($57,824,670) ($57,827,070) $0 $0 $0 $0
======================================================================================
MOR-2
CASE NAME: ERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
COMPARATIVE BALANCE SHEETS
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LIABILITIES & OWNERS EQUITY FILING DATE*
09/28/1998 OCTOBER, 1998
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LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) $0 $22,216
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PRE-PETITION LIABILITIES:
NOTES PAYABLE - SECURED $6,102,725 $6,102,725
PRIORITY DEBT 0 0
FEDERAL INCOME TAX 1,864,285 1,864,285
FICA/WITHHOLDING 0 0
UNSECURED DEBT 1,167,204 1,167,204
OTHER - INTERCO PAYABLES 13,193,230 13,193,230
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TOTAL LIABILITIES 22,327,444 22,349,660 0 0 0 0
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OWNER'S EQUITY (DEFICIT)
PREFERRED STOCK 0 0
COMMON STOCK 57,621 57,621
ADDITIONAL PAID-IN CAPITAL 33,070,204 33,070,204
RETAINED EARNINGS: FILING DATE (113,279,939) (113,279,939)
RETAINED EARNINGS: POST FILING DATE 0 (24,616)
TOTAL OWNER'S EQUITY (NET WORTH) (80,152,114) (80,176,730) 0 0 0 0
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TOTAL LIABILITIES & OWNER'S EQUITY ($57,824,670) ($57,827,070) $0 $0 $0 $0
===============================================================================
MOR-3
CASE NAME: ERLY INDUSTRIES, INC. CASE NUMBER: 98-21515-C-11
SCHEDULE OF POST-PETITION LIABILITIES
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OCTOBER, 1998
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TRADE ACCOUNTS PAYABLE $3,015
TAX PAYABLE
FEDERAL PAYROLL TAXES $0
STATE PAYROLL & SALES TAXES 0
AD VALOREM TAXES 0
OTHER TAXES 0
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TOTAL TAXES PAYABLE 0 0 0 0 0 0
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SECURED DEBT POST-PETITION 0
ACCRUED INTEREST PAYABLE 0
ACCRUED PROFESSIONAL FEES: (MOR-9)* 6,201
OTHER ACCRUED LIABILITIES:
1 DIRECTOR'S FEES (MOR-9) 3,000
2 ACCRUED PAYROLL FOR OCTOBER (MOR-9) 10,000
3 0
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TOTAL POST-PETITION LIABILITIES (MOR-3) $22,216 $0 $0 $0 $0 $0
===================================================================
* Payment Requires Court Approval
MOR-4
CASE NAME: ERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
AGING OF POST-PETITION LIABILITIES
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OCTOBER, 1998
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DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES AD-VALOREM & OTHER TAXES OTHER
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0-30 $22,216 $3,015 $0 $0 $0 $19,201
31-60 $0 0 0 0 0 0
61-90 $0 0 0 0 0 0
91+ $0 0 0 0 0 0
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TOTAL $22,216 $3,015 $0 $0 $0 $19,201
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AGING OF ACCOUNTS RECEIVABLE
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MONTH OCTOBER, 1998
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0-30 DAYS $241,322 (1)
31-60 DAYS $0
61-90 DAYS $0
91+ DAYS $0
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TOTAL $241,322 $0 $0 $0 $0 $0
================================================================================================
(1) See attachment
MOR-5
CASE NAME: ERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
STATEMENT OF INCOME OR (LOSS)
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MONTH OCTOBER, 1998 FILING TO DATE
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REVENUES (MOR-1) $0 $0
TOTAL COST OF REVENUES 0 $0
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GROSS PROFIT $0 $0 $0 $0 $0 $0
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OPERATING EXPENSES:
SELLING & MARKETING $0 $0
GENERAL & ADMINISTRATIVE 5,415 $5,415
INSIDERS COMPENSATION 13,000 $13,000
PROFESSIONAL FEES 6,201 $6,201
OTHER (attach list) 0 $0
$0
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TOTAL OPERATING EXPENSES 24,616 0 0 0 0 24,616
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INCOME BEFORE INT,DEPR/TAX (MOR-1) ($24,616) $0 $0 $0 $0 ($24,616)
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INTEREST EXPENSE 0 $0
DEPRECIATION 0 $0
OTHER(INCOME)EXPENSE(MOR-10) 0 $0
OTHER ITEMS(MOR-10) 0 $0
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TOTAL INT.DEPR&OTHER ITEMS $0 $0 $0 $0 $0 $0
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NET INCOME BEFORE TAXES ($24,616) $0 $0 $0 $0 ($24,616)
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FEDERAL INCOME TAXES $0 $0 $0 $0 $0 $0
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NET INCOME (LOSS) (MOR-1) ($24,616) $0 $0 $0 $0 ($24,616)
=======================================================================
MOR-6
CASE NAME: ERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
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CASH RECEIPTS AND
DISBURSEMENTS OCTOBER, 1998
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1 CASH - BEGINNING OF MONTH $141,972
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RECEIPTS:
2 CASH SALES $0
3 COLLECTION OF ACCOUNTS RECEIVABLE 0
4 LOANS & ADVANCES 0
5 SALE OF ASSETS 0
6 OTHER (attach list) 1,648
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TOTAL RECEIPTS 1,648
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DISBURSEMENTS:
7 NET PAYROLL 0
8 PAYROLL TAXES PAID 0
9 SALES, USE & OTHER TAXES PAID 0
10 SECURED/RENTAL/LEASES 0
11 UTILITIES 0
12 INSURANCE 1,996
13 INVENTORY PURCHASES 0
14 VEHICLE EXPENSE 0
15 TRAVEL & ENTERTAINMENT 0
16 REPAIRS, MAINTENANCE & SUPPLIES 0
17 ADMINISTRATIVE & SELLING 1,222
18 OTHER(attach list) 0
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TOTAL DISBURSEMENTS FROM OPERATIONS 3,218 0 0 0 0 0
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19 PROFESSIONAL FEES 0
20 U.S. TRUSTEE FEES 830
21 OTHER REORGANIZATION EXPENSES (attach list) 0
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TOTAL DISBURSEMENTS $4,048 $0 $0 $0 $0 $0
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22 NET CASH FLOW (2,400) 0 0 0 0 0
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23 CASH - END OF MONTH (MOR-2) $139,572 $0 $0 $0 $0 $0
=========================================================================
MOR-7
CASE NAME: ERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
CASH ACCOUNT RECONCILIATION
MONTH OF OCTOBER, 1998
----------------------
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BANK NAME UNION PLANTERS BANK OF BANK OF BANK ONE,
BANK AMERICA AMERICA ARIZONA, NA WELLS FARGO PETTY CASH TOTAL
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ACCOUNT NUMBER 9500013041 00991-06046 03445-09141 2357-0372 4311854350 NA
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ACCOUNT TYPE OPERATING PAYROLL OPERATING OPERATING OPERATING NA
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BANK BALANCE $136,568 $0 $0 $0 $5,000 $141,568
DEPOSIT IN TRANSIT 0 0 0 0 0
OUTSTANDING CHECKS 1,996 0 0 0 1,996
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ADJUSTED BANK BALANCE $134,572 $0 $0 $0 $0 $5,000 $139,572
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BEGINNING CASH - PER BOOKS $0 ($25) ($294) $1,132 $136,159 $5,000 $141,972
RECEIPTS 1,329 25 294 0 0 0 1,648
TRANSFER BETWEEN ACCOUNTS 137,083 0 0 (1,132) (135,951) 0 0
CHECKS/OTHER DISBURSEMENTS 3,840 0 0 0 208 0 4,048
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ENDING CASH - PER BOOKS $134,572 $0 $0 $0 $0 $5,000 $139,572
==============================================================================================
MOR-8
CASE NAME: ERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
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INSIDERS: NAME/POSITION/ OCTOBER, 1998
COMP TYPE
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1 EUGENE CAFIERO/DIRECTOR/FEES 3,000
2 NANETTE KELLEY/PRES/SALARY 10,000
3
4
5
6
7
8
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TOTAL INSIDERS (MOR-1) $13,000 $0 $0 $0 $0 $0
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PROFESSIONALS NAME/ OCTOBER, 1998
ORDER DATE
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1 THOMAS WHITLOCK/11/2/98 6,201
2
3
4
5
6
7
8
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TOTAL PROFESSIONALS (MOR-1) $6,201 $0 $0 $0 $0 $0
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MOR-9
CASE ERLY: Industries, Inc. CASE NUMBER: 98-21515-C-11
FOOTNOTES TO MOR SCHEDULES
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 $200,000
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TOTAL ACCOUNTS RECEIVABLE $241,322
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MOR-6
MOR-7
1 REIMBURSEMENT OF COBRA PREMIUMS $1,329
2 REFUND OF BANK SERVICE CHARGES 319
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TOTAL OF LINE 7 $1,648
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MOR-8
MOR-9