EXHIBIT 99.4
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 DECEMBER 31, 1998
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MONTH OCTOBER, 1998 NOVEMBER, 1998 DECEMBER, 1998
- ----------------------------------------------------------------------------------------------------------------------------------
REVENUES (MOR-6) $ 0 $ 100,000 $ 42,778
INCOME(LOSS) BEFORE INT,DEPR/TAX (MOR-6) ($24,616) $ 41,244 (56,593)
NET INCOME(LOSS) (MOR-6) ($24,616) $ 41,244 ($56,593)
PAYMENTS TO INSIDERS (MOR-9) (NOTE ADJUSTED NOVEMBER) $ 13,000 $ 34,000 $ 10,000
PAYMENTS TO PROFESSIONALS (MOR-9) (NOTE ADJUSTED NOVEMBER) $ 6,201 $ 2,562 $ 0
TOTAL DISBURSEMENTS (MOR-8) $ 4,048 $ 64,154 $ 61,053
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- --------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE EXPIR
DATE
- --------------------------------------------------------------
- --------------------------------------------------------------
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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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
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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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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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MOR-1
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
----------------------------------------------------
Nanette N. Kelley
TITLE: President
----------------------------------------------------
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 NOVEMBER, 1998 DECEMBER, 1998
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CURRENT ASSETS
CASH $ 141,972 $ 139,572 $ 177,758 $ 135,201
ACCOUNTS RECEIVABLE, NET 241,322 241,322 248,389 283,678
INVENTORY: LOWER OF COST OR MARKET 0 0 0
PREPAID EXPENSES 39,239 39,239 51,239 39,239
INVESTMENTS 0 0 0 0
OTHER 71,173 71,173 71,173 71,173
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TOTAL CURRENT ASSETS 493,706 491,306 548,559 529,291
---------------------------------------------------------------------------------------
PROPERTY, PLANT& EQUIP, @ COST 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)
NET BOOK VALUE OF PP&E 8,487,800 8,487,800 8,487,800 8,487,800 0 0
OTHER ASSETS:
TAX DEPOSITS 0 0 0 0
INVESTMENTS IN SUBS (66,884,551) (66,884,551) (66,884,551) (66,884,551)
DEFERRED BOND COSTS, NET 78,375 78,375 78,375 78,375
=======================================================================================
TOTAL ASSETS ($57,824,670) ($57,827,070) ($57,769,817) ($57,789,085) $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 98 NOVEMBER, 1998
- ---------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) $0 $22,216 $38,225
-----------------------------------------------------------------------
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
-----------------------------------------------------------------------
TOTAL LIABILITIES 22,327,444 22,349,660 22,365,669
-----------------------------------------------------------------------
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) 16,628
TOTAL OWNER'S EQUITY (NET WORTH) (80,152,114) (80,176,730) (80,135,486)
=======================================================================
TOTAL LIABILITIES & OWNER'S EQUITY ($57,824,670) ($57,827,070) ($57,769,817)
=======================================================================
COMPARATIVE BALANCE SHEETS
- -----------------------------------------------------------------------------------------------------------------------------
LIABILITIES & OWNERS EQUITY DECEMBER, 1998
- -----------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) $75,550
--------------------------------------------------------------------
PRE-PETITION LIABILITIES:
NOTES PAYABLE - SECURED $6,102,725
PRIORITY DEBT 0
FEDERAL INCOME TAX 1,864,285
FICA/WITHHOLDING 0
UNSECURED DEBT 1,167,204
OTHER - INTERCO PAYABLES 13,193,230
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TOTAL LIABILITIES 22,402,994 0 0
--------------------------------------------------------------------
OWNER'S EQUITY (DEFICIT)
PREFERRED STOCK 0
COMMON STOCK 57,621
ADDITIONAL PAID-IN CAPITAL 33,070,204
RETAINED EARNINGS: FILING DATE (113,279,939)
RETAINED EARNINGS: POST FILING DATE (39,965)
TOTAL OWNER'S EQUITY (NET WORTH) (80,192,079) 0 0
====================================================================
TOTAL LIABILITIES & OWNER'S EQUITY ($57,789,085) $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 DECEMBER, 1998
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TRADE ACCOUNTS PAYABLE $3,015 $20,749 $18,564
TAX PAYABLE
FEDERAL PAYROLL TAXES $0 $0 $0
STATE PAYROLL & SALES TAXES 0 276 553
AD VALOREM TAXES 0 0 0
OTHER TAXES 0 0 0
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TOTAL TAXES PAYABLE 0 276 553 0 0 0
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SECURED DEBT POST-PETITION 0 0 0
ACCRUED INTEREST PAYABLE 0 0 0
ACCRUED PROFESSIONAL FEES: (MOR-9)* 6,201 0 36,360
OTHER ACCRUED LIABILITIES:
1 DIRECTOR'S FEES (MOR-9) 3,000 0 0
2 ACCRUED PAYROLL FOR NNK (MOR-9) 10,000 10,000 10,000
3 ACCRUED OFFICER - CONTRACT (WR) 0 7,200 10,073
=====================================================================================
TOTAL POST-PETITION LIABILITIES (MOR-3) $22,216 $38,225 $75,550 $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
DECEMBER, 1998
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DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES AD-VALOREM & OTHER TAXES OTHER
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0-30 $49,463 $18,564 $0 $553 $0 $30,346
31-60 $6,014 0 0 0 0 6,014
61-90 $0 0 0 0 0 0
91+ $0 0 0 0 0 0
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TOTAL $55,477 $18,564 $0 $553 $0 $36,360
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AGING OF ACCOUNTS RECEIVABLE
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AGING OF ACCOUNTS RECEIVABLE
MONTH OCTOBER, 1998 NOVEMBER, 1998 DECEMBER, 1998
- ---------------------------------------------------------------------------------------------------------------------------------
0-30 DAYS $241,322 $248,389 $283,678 (1)
31-60 DAYS $0 $0 $0
61-90 DAYS $0 $0 $0
91+ DAYS $0 $0 $0
==================================================================================================================
TOTAL $241,322 $248,389 $283,678 $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 DECEMBER, 1998
- ---------------------------------------------------------------------------------------------------------------------------------
REVENUES (MOR-1) $0 $100,000 $42,778
TOTAL COST OF REVENUES 0 0 0
-----------------------------------------------------------------------------
GROSS PROFIT $0 $100,000 $42,778
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OPERATING EXPENSES:
SELLING & MARKETING $0 $0 $0
GENERAL & ADMINISTRATIVE 5,415 26,229 38,903
INSIDERS COMPENSATION 13,000 29,965 24,108
PROFESSIONAL FEES 6,201 2,562 36,360
OTHER (attach list) SEE FOOTNOTES 0 See Note 0
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TOTAL OPERATING EXPENSES 24,616 58,756 99,371
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INCOME BEFORE INT,DEPR/TAX (MOR-1) ($24,616) $41,244 ($56,593)
-----------------------------------------------------------------------------
INTEREST EXPENSE 0 0 0
DEPRECIATION 0 0 0
OTHER(INCOME)EXPENSE(MOR-10) 0 0 0
OTHER ITEMS(MOR-10) 0 0 0
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TOTAL INT.DEPR&OTHER ITEMS $0 $0 $0
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NET INCOME BEFORE TAXES ($24,616) $41,244 ($56,593)
-----------------------------------------------------------------------------
FEDERAL INCOME TAXES $0 $0 $0
-----------------------------------------------------------------------------
NET INCOME (LOSS) (MOR-1) ($24,616) $41,244 ($56,593)
=============================================================================
STATEMENT OF INCOME OR (LOSS)
- ------------------------------------------------------------------------------------------------------------------------
MONTH FILING TO DATE
- ------------------------------------------------------------------------------------------------------------------------
REVENUES (MOR-1) $142,778
TOTAL COST OF REVENUES $0
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GROSS PROFIT $0 $0 $142,778
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OPERATING EXPENSES:
SELLING & MARKETING $0
GENERAL & ADMINISTRATIVE $70,547
INSIDERS COMPENSATION $67,073
PROFESSIONAL FEES $45,123
OTHER (attach list) SEE FOOTNOTES $0
$0
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TOTAL OPERATING EXPENSES 0 0 182,743
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INCOME BEFORE INT,DEPR/TAX (MOR-1) $0 $0 ($39,965)
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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 ($39,965)
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FEDERAL INCOME TAXES $0 $0 $0
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NET INCOME (LOSS) (MOR-1) $0 $0 ($39,965)
====================================================================
Note: Adjust November, 1998 for misclassification of Other Operating Expense
in the amount of $19,473 to General & Administrative.
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 DECEMBER, 1998
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1 CASH - BEGINNING OF MONTH $141,972 $139,572 $177,758
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RECEIPTS:
2 CASH SALES $0 $100,000 $2,778
3 COLLECTION OF ACCOUNTS RECEIVABLE 0 0 7,067
4 LOANS & ADVANCES 0 0 0
5 SALE OF ASSETS 0 0 0
6 OTHER (attach list) 1,648 2,340 8,651
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TOTAL RECEIPTS 1,648 102,340 18,496
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DISBURSEMENTS:
7 NET PAYROLL 0 6,896 6,896
8 PAYROLL TAXES PAID 0 3,593 3,593
9 SALES, USE & OTHER TAXES PAID 0 0 0
10 SECURED/RENTAL/LEASES 0 0 0
11 UTILITIES 0 0 0
12 INSURANCE 1,996 10,157 13,359
13 INVENTORY PURCHASES 0 0 0
14 VEHICLE EXPENSE 0 0 0
15 TRAVEL & ENTERTAINMENT 0 90 2,722
16 REPAIRS, MAINTENANCE & SUPPLIES 0 0 0
17 ADMINISTRATIVE & SELLING 1,222 867 32,588
18 OTHER(attach list) 0 33,538 0
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TOTAL DISBURSEMENTS FROM OPERATIONS 3,218 55,141 59,158 0 0 0
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19 PROFESSIONAL FEES 0 8,763 0
20 U.S. TRUSTEE FEES 830 250 0
21 OTHER REORGANIZATION EXPENSES (attach list) 0 0 1,895
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TOTAL DISBURSEMENTS $4,048 $64,154 $61,053 $0 $0 $0
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22 NET CASH FLOW (2,400) 38,186 (42,557) 0 0 0
=================================================================================
23 CASH - END OF MONTH (MOR-2) $139,572 $177,758 $135,201 $0 $0 $0
=================================================================================
MOR-7
CASE NAME: ERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
CASH ACCOUNT RECONCILIATION
MONTH OF DECEMBER, 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 $136,363 CLOSED CLOSED CLOSED
DEPOSIT IN TRANSIT 0 0 0 0
OUTSTANDING CHECKS 6,162 0 0 0
===================================================================================
ADJUSTED BANK BALANCE $130,201 $0 $0 $0
===================================================================================
BEGINNING CASH - PER BOOKS $172,758 $0 $0 $0
RECEIPTS 18,496 0 0 0
TRANSFER BETWEEN ACCOUNTS 0 0 0 0
CHECKS/OTHER DISBURSEMENTS 61,053 0 0 0
===================================================================================
ENDING CASH - PER BOOKS $130,201 $0 $0 $0
===================================================================================
CASH ACCOUNT RECONCILIATION
MONTH OF DECEMBER, 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 $141,363
DEPOSIT IN TRANSIT 0
OUTSTANDING CHECKS 6,162
========================================================
ADJUSTED BANK BALANCE $0 $5,000 $135,201
========================================================
BEGINNING CASH - PER BOOKS $0 $5,000 $177,758
RECEIPTS 0 0 18,496
TRANSFER BETWEEN ACCOUNTS 0 0 0
CHECKS/OTHER DISBURSEMENTS 0 0 61,053
========================================================
ENDING CASH - PER BOOKS $0 $5,000 $135,201
========================================================
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/COMP TYPE OCTOBER, 1998 NOVEMBER, 1998 DECEMBER, 1998
---------------------------------------------------------------------------------------------------------------------------
1 EUGENE CAFIERO/DIRECTOR/FEES 3,000 6,000 0
2 NANETTE KELLEY/PRES/SALARY 10,000 10,000 10,000
3 WENDY REEVES/ASSTSEC/CONTRACT See Note 0
4 BERYL ANTHONY /DIRECTOR/FEES 6,000 0
5 BILL BLAKE/DIRECTOR/FEES 6,000 0
6 PETE SEALE, JR./DIRECTOR/FEES 6,000 0
7
8
===============================================================================
TOTAL INSIDERS (MOR-1) $13,000 $34,000 $10,000 $0 $0 $0
===============================================================================
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PROFESSIONALS NAME/ORDER DATE OCTOBER, 1998 NOVEMBER, 1998 DECEMBER, 1998
---------------------------------------------------------------------------------------------------------------------------
1 THOMAS WHITLOCK 6,201 0 0
2 MATTHEW ROSENSTEIN 0 2,562 0
3
4
5
6
7
8
=======================================================================================
TOTAL PROFESSIONALS (MOR-1) $6,201 $2,562 $0 $0 $0 $0
=======================================================================================
Note: Adjusted because funds were not actually disbursed but accrued.
MOR-9
CASE NERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
FOOTNOTES TO MOR SCHEDULES
DECEMBER, 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. $42,356
==================
TOTAL ACCOUNTS RECEIVABLE $283,678
==================
MOR-6
MOR-7
1 REIMBURSEMENT OF COBRA PREMIUMS (4) $1,432
2 REFUND OF TELEPHONE DEPOSIT $152
3 CHEMONICS INTERNATIONAL, INC. - INSURANCE REIMBURSEMENT $7,067
==================
TOTAL OF LINE 7 $8,651
==================
MOR-8
MOR-9