EXHIBIT 99.3
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 NOVEMBER 30, 1998
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MONTH OCTOBER, 1998 NOVEMBER, 1998
- ------------------------------------------------------------------------------------------------------------------
REVENUES (MOR-6) $ 0 $ 0
INCOME(LOSS) BEFORE INT,DEPR/TAX (MOR-6) ($24,616) ($58,756)
NET INCOME(LOSS) (MOR-6) ($24,616) ($58,756)
PAYMENTS TO INSIDERS (MOR-9) $13,000 $ 17,200
PAYMENTS TO PROFESSIONALS (MOR-9) $ 6,201 $ 2,858
TOTAL DISBURSEMENTS (MOR-8) $ 4,048 $ 64,154
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- ---------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
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
--
Are all funds received being deposited into DIP bank account? Yes
---
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
--
What is the status of your Plan of Reorganization? In Process - Pending
--------------------
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
COMPARATIVE BALANCE SHEETS
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ASSETS FILING DATE*
09/28/1998 OCTOBER, 1998 NOVEMBER, 1998
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CURRENT ASSETS
CASH $141,972 $139,572 $177,758
ACCOUNTS RECEIVABLE, NET 241,322 241,322 248,389
INVENTORY: LOWER OF COST OR MARKET 0 0 0
PREPAID EXPENSES 39,239 39,239 51,239
INVESTMENTS 0 0 0
OTHER 71,173 71,173 71,173
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TOTAL CURRENT ASSETS 493,706 491,306 548,559 0 0 0
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PROPERTY, PLANT& EQUIP, @ COST 11,617,497 11,617,497 11,617,497
LESS ACCUMULATED DEPRECIATION (3,129,697) (3,129,697) (3,129,697)
NET BOOK VALUE OF PP&E 8,487,800 8,487,800 8,487,800 0 0 0
OTHER ASSETS:
TAX DEPOSITS 0 0 0
INVESTMENTS IN SUBS (66,884,551) (66,884,551) (66,984,551)
DEFERRED BOND COSTS, NET 78,375 78,375 78,375
=======================================================================================
TOTAL ASSETS ($57,824,670) ($57,827,070) ($57,869,817) $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 NOVEMBER, 1998
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LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) $ 0 $ 22,216 $ 38,225
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PRE-PETITION LIABILITIES:
NOTES PAYABLE - SECURED $ 6,102,725 $ 6,102,725 $ 6,102,725
PRIORITY DEBT 0 0 0
FEDERAL INCOME TAX 1,864,285 1,864,285 1,864,285
FICA/WITHHOLDING 0 0 0
UNSECURED DEBT 1,167,204 1,167,204 1,167,204
OTHER - INTERCO PAYABLES 13,193,230 13,193,230 13,193,230
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TOTAL LIABILITIES 22,327,444 22,349,660 22,365,669 0 0 0
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OWNER'S EQUITY (DEFICIT)
PREFERRED STOCK 0 0 0
COMMON STOCK 57,621 57,621 57,621
ADDITIONAL PAID-IN CAPITAL 33,070,204 33,070,204 33,070,204
RETAINED EARNINGS: FILING DATE (113,279,939) (113,279,939) (113,279,939)
RETAINED EARNINGS: POST FILING DATE 0 (24,616) (83,372)
TOTAL OWNER'S EQUITY (NET WORTH) (80,152,114) (80,176,730) (80,235,486) 0 0 0
===========================================================================================
TOTAL LIABILITIES & OWNER'S EQUITY ($57,824,670) ($57,827,070) ($57,869,817) $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 NOVEMBER, 1998
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TRADE ACCOUNTS PAYABLE $ 3,015 $20,749
TAX PAYABLE
FEDERAL PAYROLL TAXES $ 0 $ 0
STATE PAYROLL & SALES TAXES 0 276
AD VALOREM TAXES 0 0
OTHER TAXES 0 0
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TOTAL TAXES PAYABLE 0 276 0 0 0 0
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SECURED DEBT POST-PETITION 0 0
ACCRUED INTEREST PAYABLE 0 0
ACCRUED PROFESSIONAL FEES: (MOR-9)* 6,201 0
OTHER ACCRUED LIABILITIES:
1 DIRECTOR'S FEES (MOR-9) 3,000 0
2 ACCRUED PAYROLL FOR OCTOBER (MOR-9) 10,000
3 0 0
===========================================================================================
TOTAL POST-PETITION LIABILITIES (MOR-3) $22,216 $38,225 $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
NOVEMBER, 1998
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DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES AD-VALOREM OTHER
& OTHER TAXES
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0-30 $38,225 $20,749 $0 $276 $0 $17,200
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 $38,225 $20,749 $0 $276 $0 $17,200
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AGING OF ACCOUNTS RECEIVABLE
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MONTH OCTOBER, 1998 NOVEMBER, 1998
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0-30 DAYS $241,322 $248,389 (1)
31-60 DAYS $0 $0
61-90 DAYS $0 $0
91+ DAYS $0 $0
================================================================================================================
TOTAL $241,322 $248,389 $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 NOVEMBER, 1998
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REVENUES (MOR-1) $0 $0
TOTAL COST OF REVENUES 0 0
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GROSS PROFIT $0 $0 $0
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OPERATING EXPENSES:
SELLING & MARKETING $0
GENERAL & ADMINISTRATIVE 5,415 6,460
INSIDERS COMPENSATION 13,000 29,965
PROFESSIONAL FEES 6,201 2,858
OTHER (attach list) SEE FOOTNOTES 0 19,473
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TOTAL OPERATING EXPENSES 24,616 58,756 0
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INCOME BEFORE INT,DEPR/TAX (MOR-1) ($24,616) ($58,756) $0
-------------------------------------------------------------------
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
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NET INCOME BEFORE TAXES ($24,616) ($58,756) $0
-------------------------------------------------------------------
FEDERAL INCOME TAXES $0 $0 $0
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NET INCOME (LOSS) (MOR-1) ($24,616) ($58,756) $0
===================================================================
STATEMENT OF INCOME OR (LOSS)
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MONTH FILING TO DATE
- ------------------------------------------------------------------------------------------------------------------------
REVENUES (MOR-1) $0
TOTAL COST OF REVENUES $0
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GROSS PROFIT $0 $0 $0
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OPERATING EXPENSES:
SELLING & MARKETING $0
GENERAL & ADMINISTRATIVE $11,875
INSIDERS COMPENSATION $42,965
PROFESSIONAL FEES $9,059
OTHER (attach list) SEE FOOTNOTES $19,473
$0
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TOTAL OPERATING EXPENSES 0 0 83,372
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INCOME BEFORE INT,DEPR/TAX (MOR-1) $0 $0 ($83,372)
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INTEREST EXPENSE $0
DEPRECIATION $0
OTHER(INCOME)EXPENSE(MOR-10) $0
OTHER ITEMS(MOR-10) $0
-----------------------
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TOTAL INT.DEPR&OTHER ITEMS $0 $0 $0
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NET INCOME BEFORE TAXES $0 $0 ($83,372)
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FEDERAL INCOME TAXES $0 $0 $0
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NET INCOME (LOSS) (MOR-1) $0 $0 ($83,372)
=====================================================================
MOR-6
CASE NAME: ERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
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CASH RECEIPTS AND DISBURSEMENTS OCTOBER, 1998 NOVEMBER, 1998
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1 CASH - BEGINNING OF MONTH $141,972 $139,572
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RECEIPTS:
2 CASH SALES $0 $0
3 COLLECTION OF ACCOUNTS RECEIVABLE 0 0
4 LOANS & ADVANCES 0 0
5 SALE OF ASSETS 0 0
6 OTHER (attach list) 1,648 102,340
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TOTAL RECEIPTS 1,648 102,340
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DISBURSEMENTS:
7 NET PAYROLL 0 6,896
8 PAYROLL TAXES PAID 0 3,593
9 SALES, USE & OTHER TAXES PAID 0 0
10 SECURED/RENTAL/LEASES 0 0
11 UTILITIES 0 0
12 INSURANCE 1,996 10,157
13 INVENTORY PURCHASES 0 0
14 VEHICLE EXPENSE 0 0
15 TRAVEL & ENTERTAINMENT 0 90
16 REPAIRS, MAINTENANCE & SUPPLIES 0 0
17 ADMINISTRATIVE & SELLING 1,222 571
18 OTHER(attach list) 0 33,538
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TOTAL DISBURSEMENTS FROM OPERATIONS 3,218 54,845 0
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19 PROFESSIONAL FEES 0 9,059
20 U.S. TRUSTEE FEES 830 250
21 OTHER REORGANIZATION EXPENSES (attach list) 0 0
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TOTAL DISBURSEMENTS $4,048 $64,154 $0
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22 NET CASH FLOW (2,400) 38,186 0
===================================================================
23 CASH - END OF MONTH (MOR-2) $139,572 $177,758 $0
===================================================================
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CASH RECEIPTS AND DISBURSEMENTS
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1 CASH - BEGINNING OF MONTH
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RECEIPTS:
2 CASH SALES
3 COLLECTION OF ACCOUNTS RECEIVABLE
4 LOANS & ADVANCES
5 SALE OF ASSETS
6 OTHER (attach list)
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TOTAL RECEIPTS
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DISBURSEMENTS:
7 NET PAYROLL
8 PAYROLL TAXES PAID
9 SALES, USE & OTHER TAXES PAID
10 SECURED/RENTAL/LEASES
11 UTILITIES
12 INSURANCE
13 INVENTORY PURCHASES
14 VEHICLE EXPENSE
15 TRAVEL & ENTERTAINMENT
16 REPAIRS, MAINTENANCE & SUPPLIES
17 ADMINISTRATIVE & SELLING
18 OTHER(attach list)
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TOTAL DISBURSEMENTS FROM OPERATIONS 0 0 0
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19 PROFESSIONAL FEES
20 U.S. TRUSTEE FEES
21 OTHER REORGANIZATION EXPENSES (attach list)
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TOTAL DISBURSEMENTS $0 $0 $0
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22 NET CASH FLOW 0 0 0
=====================================================================
23 CASH - END OF MONTH (MOR-2) $0 $0 $0
=====================================================================
MOR-7
CASE NAME: ERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
CASH ACCOUNT RECONCILIATION
MONTH OF NOVEMBER, 1998
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BANK NAME UNION PLANTERS BANK BANK OF AMERICA BANK OF AMERICA BANK ONE, ARIZONA, NA
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ACCOUNT NUMBER 9500013041 00991-06046 03445-09141 2357-0372
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ACCOUNT TYPE OPERATING PAYROLL OPERATING OPERATING
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BANK BALANCE $195,715 CLOSED CLOSED CLOSED
DEPOSIT IN TRANSIT 0 0 0 0
OUTSTANDING CHECKS 22,957 0 0 0
=====================================================================================
ADJUSTED BANK BALANCE $172,758 $0 $0 $0
=====================================================================================
BEGINNING CASH - PER BOOKS $134,572 $0 $0 $0
RECEIPTS 102,340 0 0 0
TRANSFER BETWEEN ACCOUNTS 0 0 0 0
CHECKS/OTHER DISBURSEMENTS 64,154 0 0 0
=====================================================================================
ENDING CASH - PER BOOKS $172,758 $0 $0 $0
=====================================================================================
CASH ACCOUNT RECONCILIATION
MONTH OF NOVEMBER, 1998
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BANK NAME WELLS FARGO PETTY CASH TOTAL
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ACCOUNT NUMBER 4311854350 NA
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ACCOUNT TYPE OPERATING NA
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BANK BALANCE CLOSED $5,000 $200,715
DEPOSIT IN TRANSIT 0
OUTSTANDING CHECKS 22,957
======================================================
ADJUSTED BANK BALANCE $0 $5,000 $177,758
======================================================
BEGINNING CASH - PER BOOKS $0 $5,000 $139,572
RECEIPTS 0 0 102,340
TRANSFER BETWEEN ACCOUNTS 0 0 0
CHECKS/OTHER DISBURSEMENTS 0 0 64,154
======================================================
ENDING CASH - PER BOOKS $0 $5,000 $177,758
======================================================
MOR-8
CASE NAME: ERLY Industries, Inc. CASE NUMBER: A98-21515-C-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
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INSIDERS: NAME/POSITION/COMP TYPE OCTOBER, 1998 NOVEMBER, 1998
----------------------------------------------------------------------------------------------
1 EUGENE CAFIERO/DIRECTOR/FEES 3,000 6,000
2 NANETTE KELLEY/PRES/SALARY 10,000 10,000
3 WENDY REEVES/ASSTSEC/SALARY (2) 7,200
4 BERYL ANTHONY /DIRECTOR/FEES 6,000
5 BILL BLAKE/DIRECTOR/FEES 6,000
6 PETE SEALE, JR./DIRECTOR/FEES 6,000
7
8
==========================================================
TOTAL INSIDERS (MOR-1) $13,000 $41,200 $0
==========================================================
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PROFESSIONALS NAME/ORDER DATE OCTOBER, 1998 NOVEMBER, 1998
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1 THOMAS WHITLOCK/11/2/98 6,201 0
2 MATTHEW ROSENSTEIN 0 2,562
3 R R DONNELLEY REC, INC. 0 296
4
5
6
7
8
==========================================================
TOTAL PROFESSIONALS (MOR-1) $6,201 $2,858 $0
==========================================================
PAYMENTS TO INSIDERS AND PROFESSIONALS
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INSIDERS: NAME/POSITION/COMP TYPE
----------------------------------------------------------------------------------------------
1 EUGENE CAFIERO/DIRECTOR/FEES
2 NANETTE KELLEY/PRES/SALARY
3 WENDY REEVES/ASSTSEC/SALARY (2)
4 BERYL ANTHONY /DIRECTOR/FEES
5 BILL BLAKE/DIRECTOR/FEES
6 PETE SEALE, JR./DIRECTOR/FEES
7
8
==========================================================
TOTAL INSIDERS (MOR-1) $0 $0 $0
==========================================================
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PROFESSIONALS NAME/ORDER DATE
----------------------------------------------------------------------------------------------
1 THOMAS WHITLOCK/11/2/98
2 MATTHEW ROSENSTEIN
3 R R DONNELLEY REC, INC.
4
5
6
7
8
==========================================================
TOTAL PROFESSIONALS (MOR-1) $0 $0 $0
==========================================================
MOR-9
CASE NERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
FOOTNOTES TO MOR SCHEDULES
NOVEMBER, 1998
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
3 CHEMONICS INTERNATIONAL, INC. - INSURANCE REIMBURSEMENT $7,067
===================
TOTAL ACCOUNTS RECEIVABLE $248,389
===================
MOR-6
1 STAFF FEES , OFFICE SPACE RENT, OTHER DIRECT EXPENSES $19,473
===================
MOR-7
1 REIMBURSEMENT OF COBRA PREMIUMS (4) $2,318
2 METER REFUND CANCELLATION $22
3 MANAGEMENT FEES - CHEMONICS INTERNATIONAL, INC. - PRE PETITION $100,000
===================
TOTAL OF LINE 7 $102,340
===================
18 DIRECTOR'S FEES $27,000
18 ACCOUNTING FEES - CA $6,538
===================
TOTAL OF LINE 18 $33,538
===================
MOR-8
MOR-9