EXHIBIT 99.5
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 JANUARY 31, 1999
- ---------------------------------------------------------------------------------------------------------------
MONTH OCTOBER, NOVEMBER, DECEMBER,
1998 1998 1998 JANUARY, 1999
- ---------------------------------------------------------------------------------------------------------------
REVENUES (MOR-6) See Footnotes $40,000 $40,000 $40,000 $ 40,000
INCOME(LOSS) BEFORE INT,DEPR/TAX (MOR-6) See Footnotes $15,384 ($18,756) (59,371) (9,334)
NET INCOME(LOSS) (MOR-6) See Footnotes $15,384 ($18,756) ($59,371) ($ 9,334)
PAYMENTS TO INSIDERS (MOR-9) $13,000 $34,000 $10,000 24,961
PAYMENTS TO PROFESSIONALS (MOR-9) $ 6,201 $ 2,562 $ 0 36,360
TOTAL DISBURSEMENTS (MOR-8) $ 4,048 $64,154 $61,053 116,910
- ---------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------
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
- -------------------------------------------------------------
Are all accounts receivable being collected within terms? Unknown
-------
See attachment
- --------------
Are all post-petition liabilities, including taxes, being paid within terms?
Yes
- ---
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
--------------------
- ----------------------------------------------
ATTORNEY NAME: Matthew Rosenstein, Esq.
FIRM:
ADDRESS: 711 N Carancahua, # 420
ADDRESS:
CITY, STATE, ZIP Corpus Christi, TX 78475
TELEPHONE: 512-883-5577
- ----------------------------------------------
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.
/s/ Nanette N. Kelley
SIGNED: ______________________________
Nanette N. Kelley
TITLE: President
------------------------------
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
- ---------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
CASH $141,972 $139,572 $177,758 $135,201 $140,722
ACCOUNTS RECEIVABLE, NET 241,322 241,322 241,322 238,544 238,544 (1)
INVENTORY: LOWER OF COST OR MARKET 0 0 0 0 0
PREPAID EXPENSES 39,239 39,239 51,239 39,239 39,239
INVESTMENTS 0 0 0 0 0
OTHER 71,173 111,173 58,240 93,529 54,359 (1)
-----------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 493,706 531,306 528,559 506,513 472,864 0
-----------------------------------------------------------------------------------------
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 0
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 ($57,824,670) ($57,787,070) ($57,789,817) ($57,811,863) ($57,845,512) $0
=========================================================================================
(1) See footnotes
MOR-2
CASE NAME: ERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
COMPARATIVE BALANCE SHEETS
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES & OWNERS EQUITY FILING DATE*
09/28/1998 OCTOBER, 1998 NOVEMBER, 1998 DECEMBER, 1998 JANUARY, 1999
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) $ 0 $ 22,216 $ 38,225 $ 75,550 $ 51,235
-------------------------------------------------------------------------------------------
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 22,327,444 22,349,660 22,365,669 22,402,994 22,378,679 0
-------------------------------------------------------------------------------------------
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 0 15,384 (3,372) (62,743) (72,077) (1)
TOTAL OWNER'S EQUITY (NET WORTH) (80,152,114) (80,136,730) (80,155,486) (80,214,857) (80,224,191) 0
===========================================================================================
TOTAL LIABILITIES & OWNER'S EQUITY ($57,824,670) ($57,787,070) ($57,789,817) ($57,811,863) ($57,845,512) $0
===========================================================================================
(1) See footnotes
MOR-3
CASE NAME: ERLY INDUSTRIES, INC. CASE NUMBER: 98-21515-C-11
SCHEDULE OF POST-PETITION LIABILITIES
---------------------------------------------------------------------------------------------------------------------------------
OCTOBER, 1998 NOVEMBER, 1998 DECEMBER, 1998 JANUARY, 1999
---------------------------------------------------------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 3,015 $20,749 $18,564 $47,722
TAX PAYABLE
FEDERAL PAYROLL TAXES $ 0 $ 0 $ 0 $ 0
STATE PAYROLL & SALES TAXES 0 276 553 552
AD VALOREM TAXES 0 0 0 0
OTHER TAXES 0 0 0 0
--------------------------------------------------------------------------------------
TOTAL TAXES PAYABLE 0 276 553 552 0 0
--------------------------------------------------------------------------------------
SECURED DEBT POST-PETITION 0 0 0 0
ACCRUED INTEREST PAYABLE 0 0 0 0
ACCRUED PROFESSIONAL FEES: (MOR-9)* 6,201 0 36,360 0
OTHER ACCRUED LIABILITIES: 0
1 DIRECTOR'S FEES (MOR-9) 3,000 0 0 0
2 ACCRUED PAYROLL FOR NNK (MOR-9) 10,000 10,000 10,000 0
3 ACCRUED OFFICER - CONTRACT (WR) 0 7,200 10,073 2,961
======================================================================================
TOTAL POST-PETITION LIABILITIES (MOR-3) $22,216 $38,225 $75,550 $51,235 $0 $0
======================================================================================
* Payment Requires Court Approval
CASE NAME: ERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
AGING OF POST-PETITION LIABILITIES
----------------------------------
JANUARY, 1999
- --------------------------------------------------------------------------------------------------------
AD-VALOREM &
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
- --------------------------------------------------------------------------------------------------------
0-30 $51,235 $ 47,721 $ 0 $ 552 $0 $2,962
31-60 $ 0 0 0 0 0 0
61-90 $ 0 0 0 0 0 0
91+ $ 0 0 0 0 0 0
-----------------------------------------------------------------------------------------
TOTAL $51,235 $ 47,721 $ 0 $ 552 $0 $2,962
-----------------------------------------------------------------------------------------
AGING OF ACCOUNTS RECEIVABLE
----------------------------
- --------------------------------------------------------------------------------------------------------
MONTH OCTOBER, 1998 NOVEMBER, 1998 DECEMBER, 1998 JANUARY, 1999
- --------------------------------------------------------------------------------------------------------
0-30 DAYS $ 0 $ 0 $ 0 $ 0
31-60 DAYS $ 0 $ 0 $ 0 $ 0
61-90 DAYS $ 0 $ 0 $ 0 $ 0
91+ DAYS $241,322 $241,322 $238,544 $238,544 (1)
=========================================================================================
TOTAL $241,322 $241,322 $238,544 $238,544 $0 $ 0
=========================================================================================
(1) See footnotes
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 FILING TO DATE
- ----------------------------------------------------------------------------------------------------------------------------------
REVENUES (MOR-1) See footnotes $40,000 $40,000 $40,000 $40,000 $160,000
TOTAL COST OF REVENUES 0 0 0 0 $ 0
---------------------------------------------------------------------------------------
GROSS PROFIT $40,000 $40,000 $40,000 $40,000 $0 $160,000
---------------------------------------------------------------------------------------
OPERATING EXPENSES:
SELLING & MARKETING $ 0 $ 0 $ 0 $ 0 $ 0
GENERAL & ADMINISTRATIVE 5,415 26,229 38,903 24,372 $ 94,919
INSIDERS COMPENSATION 13,000 29,965 24,108 24,962 $ 92,035
PROFESSIONAL FEES 6,201 2,562 36,360 0 $ 45,123
OTHER (attach list) SEE FOOTNOTES 0 0 0 0 $ 0
$ 0
---------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 24,616 58,756 99,371 49,334 0 232,077
---------------------------------------------------------------------------------------
INCOME BEFORE INT,DEPR/TAX (MOR-1) $15,384 ($18,756) ($59,371) ($ 9,334) $0 ($ 72,077)
---------------------------------------------------------------------------------------
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 $ 0
---------------------------------------------------------------------------------------
NET INCOME BEFORE TAXES $15,384 ($18,756) ($59,371) ($ 9,334) $0 ($ 72,077)
---------------------------------------------------------------------------------------
FEDERAL INCOME TAXES $ 0 $ 0 $ 0 $ 0 $0 $ 0
---------------------------------------------------------------------------------------
NET INCOME (LOSS) (MOR-1) $15,384 ($18,756) ($59,371) ($ 9,334) $0 ($ 72,077)
=======================================================================================
CASE NAME: ERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
---------------------------------------------------------------------------------------------------------------------------
CASH RECEIPTS AND DISBURSEMENTS OCTOBER, 1998 NOVEMBER, 1998 DECEMBER, 1998 JANUARY, 1999
---------------------------------------------------------------------------------------------------------------------------
1 CASH - BEGINNING OF MONTH $141,972 $139,572 $177,758 $135,201
-------------------------------------------------------------------------------
RECEIPTS:
2 CASH SALES $ 0 $ 0 $ 0 $ 0
3 COLLECTION OF ACCOUNTS RECEIVABLE (1) 0 100,000 9,845 80,000
4 LOANS & ADVANCES 0 0 0 0
5 SALE OF ASSETS 0 0 0 0
6 OTHER (attach list) 1,648 2,340 8,651 47,431
-------------------------------------------------------------------------------
TOTAL RECEIPTS 1,648 102,340 18,496 127,431
-------------------------------------------------------------------------------
DISBURSEMENTS:
7 NET PAYROLL 0 6,896 6,896 23,900
8 PAYROLL TAXES PAID 0 3,593 3,593 7,760
9 SALES, USE & OTHER TAXES PAID 0 0 0 10
10 SECURED/RENTAL/LEASES 0 0 0 5,625
11 UTILITIES 0 0 0 0
12 INSURANCE 1,996 10,157 13,359 12,945
13 INVENTORY PURCHASES 0 0 0 0
14 VEHICLE EXPENSE 0 0 0 0
15 TRAVEL & ENTERTAINMENT 0 90 2,722 1,845
16 REPAIRS, MAINTENANCE & SUPPLIES 0 0 0 0
17 ADMINISTRATIVE & SELLING 1,222 867 32,588 15,715
18 OTHER(attach list) 0 33,538 0 12,000
-------------------------------------------------------------------------------
TOTAL DISBURSEMENTS FROM OPERATIONS 3,218 55,141 59,158 79,800 0 0
-------------------------------------------------------------------------------
19 PROFESSIONAL FEES 0 8,763 0 36,360
20 U.S. TRUSTEE FEES 0 250 0 750
21 OTHER REORGANIZATION EXPENSES (attach list) 830 0 1,895 0
-------------------------------------------------------------------------------
TOTAL DISBURSEMENTS $ 4,048 $ 64,154 $ 61,053 $116,910 $0 $0
-------------------------------------------------------------------------------
22 NET CASH FLOW (2,400) 38,186 (42,557) 10,521 0 0
===============================================================================
23 CASH - END OF MONTH (MOR-2) $139,572 $177,758 $135,201 $145,722 $0 $0
===============================================================================
(1) See footnotes
CASE NAME: ERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
CASH ACCOUNT RECONCILIATION
MONTH OF JANUARY, 1999
----------------------
===================================================================================================================================
BANK ONE,
BANK NAME UNION PLANTERS BANK BANK OF AMERICA BANK OF AMERICA ARIZONA, NA WELLS FARGO PETTY CASH TOTAL
- -----------------------------------------------------------------------------------------------------------------------------------
ACCOUNT NUMBER 9500013041 00991-06046 03445-09141 2357-0372 4311854350 NA
- -----------------------------------------------------------------------------------------------------------------------------------
ACCOUNT TYPE OPERATING PAYROLL OPERATING OPERATING OPERATING NA
- -----------------------------------------------------------------------------------------------------------------------------------
BANK BALANCE $142,566 CLOSED CLOSED CLOSED CLOSED CLOSED $142,566
DEPOSIT IN TRANSIT 0 0 0 0 0
OUTSTANDING CHECKS 1,844 0 0 0 1,844
--------------------------------------------------------------------------------------------------------
ADJUSTED BANK BALANCE $140,722 $0 $0 $0 $0 $0 $140,722
========================================================================================================
BEGINNING CASH - PER BOOKS $130,201 $0 $0 $0 $0 $5,000 $135,201
RECEIPTS 122,481 0 0 0 0 0 122,481
TRANSFER BETWEEN ACCOUNTS 4,950 0 0 0 0 0 4,950
CHECKS/OTHER DISBURSEMENTS 116,910 0 0 0 0 5,000 121,910
--------------------------------------------------------------------------------------------------------
ENDING CASH - PER BOOKS $140,722 $0 $0 $0 $0 $0 $140,722
========================================================================================================
CASE NAME: ERLY Industries, Inc. CASE NUMBER: 98-21515-C-11
PAYMENTS TO INSIDERS AND PROFESSIONALS
---------------------------------------------------------------------------------------------------------------------------------
INSIDERS: NAME/POSITION/COMP TYPE NOVEMBER, DECEMBER,
OCTOBER, 1998 1998 1998 JANUARY, 1999
---------------------------------------------------------------------------------------------------------------------------------
1 EUGENE CAFIERO/DIRECTOR/FEES 3,000 6,000 0 3,000
2 NANETTE KELLEY/PRES/SALARY 10,000 10,000 10,000 10,000
3 WENDY REEVES/ASSTSEC/CONTRACT 0 0 2,962
4 BERYL ANTHONY /DIRECTOR/FEES 6,000 0 3,000
5 BILL BLAKE/DIRECTOR/FEES 6,000 0 3,000
6 PETE SEALE, JR./DIRECTOR/FEES 6,000 0 3,000
7
8
===========================================================================================
TOTAL INSIDERS (MOR-1) $13,000 $34,000 $10,000 $24,962 $0 $0
===========================================================================================
----------------------------------------------------------------------------------------------------------------------------------
PROFESSIONALS NAME/ORDER DATE NOVEMBER, DECEMBER,
OCTOBER, 1998 1998 1998 JANUARY, 1999
--------------------------------------------------------------------------------------------------------------------------------
1 THOMAS WHITLOCK 6,201 0 0 6,014
2 MATTHEW ROSENSTEIN 0 2,562 0 30,346
3
4
5
6
7
8
========================================================================================
TOTAL PROFESSIONALS (MOR-1) $6,201 $2,562 $0 $36,360 $0 $0
========================================================================================
MOR-9
CASE NAME: ERLY Industries, Inc. CASE NUMBER:98-21515-C-11
FOOTNOTES TO MOR SCHEDULES
JANUARY, 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 $ 197,222
===================
TOTAL ACCOUNTS RECEIVABLE $ 238,544
===================
MOR-6
MOR-7
1 REIMBURSEMENT OF COBRA PREMIUMS (4) $ 1,322
2 DEPOSIT OF PETTY CASH LESS BANK CHARGE $ 4,950
3 ERROR IN DEPOSITING PROJECT FEE FOR ENGINEERING & ENVIRONMENTAL $ 14,150
4 ERROR IN DEPOSITING CHECK MADE TO TPG BACK INTO ACCT. $ 17,736
5 CHEMONICS INTERNATIONAL, INC. - INSURANCE REIMBURSEMENT $ 9,423
===================
TOTAL OF LINE 7 $ 47,431
===================
MOR-8
MOR-9
(1) All previous filings were adjust to reflect the accrual of $40,000 a
month for management fees due from Chemonics, Inc. and to apply $100,000
of funds received from Chemonics in November, 1999,to other assets.
Intercompany receivables are classfied under other assets.