EXHIBIT 99.1
UST-10 COVER SHEET
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MONTHLY FINANCIAL REPORT FOR
CORPORATE OR PARTNERSHIP DEBTOR
Case No. 02-23396 Report Month/Year January 2003
Debtor NETWORK COMMERCE, INC.
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INSTRUCTIONS: The debtor's monthly financial report shall include a cover sheet
signed by the debtor and all UST forms and supporting documents. Exceptions, if
allowed, are noted in the checklist below. Failure to comply with the reporting
requirements of Local Bankruptcy Rule 2015-2(a), or the U.S. Trustee's reporting
requirements, is cause for conversion or dismissal of the case.
The debtor submits the following with this monthly financial report: Yes No
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UST-12 COMPARATIVE BALANCE SHEET, or debtor's balance sheet. |X| |_|
The debtor's balance sheet, if used, shall include a breakdown of
pre- and post-petition liabilities. The breakdown may be provided
as a separate attachment to the debtor's balance sheet.
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UST-13 COMPARATIVE INCOME STATEMENT, OR DEBTOR'S INCOME STATEMENT. |X| |_|
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UST-14 SUMMARY OF DISBURSEMENTS |X| |_|
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UST-14 STATEMENT(S) OF CASH RECEIPTS AND DISBURSEMENTS
Continuation A Continuation Sheet shall be completed for each bank account or
Sheets other source of debtor funds and shall include a monthly
bank statement and all supporting documents described in the
instructions. |X| |_|
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UST-15 STATEMENT OF AGED RECEIVABLES
A detailed accounting of aged receivables shall be provided on, or in an |X| |_|
attachment to, UST-15.
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UST-16 STATEMENT OF AGED POST-PETITION PAYABLES
A detailed accounting of aged post-petition payables shall be provided
on, or in an attachment to, UST-16. |X| |_|
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UST-17 STATEMENT OF OPERATIONS
When applicable, UST-17 shall include supporting documents such as an
escrow statement for the sale of real property, an auctioneer's report
for property sold at auction, or a certificate of insurance or
copy of debtor's bond for any change in insurance or bond coverage. |X| |_|
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DEBTOR'S CERTIFICATION
I certify under penalty of perjury that the information contained in this
monthly financial report are complete, true, and accurate to the best of my
knowledge, information, and belief.
Debtor's Signature /s/ N. Scott Dickson Date 2/18/03
The debtor, or trustee, if appointed, must sign the monthly financial report.
Only an officer or director has authority to sign a financial report for a
corporate debtor and only a general partner has authority to sign a financial
report for partnership debtor. Debtor's counsel may not sign a financial report
for the debtor.
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Monthly Financial Report - Corporate or Partnership Debtor Page 1 of 14
United States Trustee - Western District of Washington (Revised Aug. 2000)
NETWORK COMMERCE INC.
BALANCE SHEETS
(in thousands)
1/31/2003
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(unaudited)
ASSETS
Current Assets:
Cash, cash equivalents & ST Inv .......................... $ 121,278
Letter of Credit ......................................... 57,292
Accounts receivable, net ................................. 527,768
Marketable equity securities ............................. 4,317
Prepaid expenses ......................................... 435,193
Note receivable .......................................... 10,738
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Total current assets ..................................... 1,156,586
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Property, Plant & Equipment:
Real property/buildings .................................. 272,630
Equipment/software/furn & fix ............................ 15,315,577
Accumulated depreciation ................................. (14,757,681)
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Total property, plant & equipment ........................ 830,526
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Deposits ................................................. 412,208
Deferred domain names .................................... 145,871
Investments .............................................. 570,000
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TOTAL ASSETS ............................................. $ 3,115,191
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LIABILITIES AND SHAREHOLDERS EQUITY
Post-Petition Liabilities:
Taxes payable ............................................ $ 2,837
Accounts payable ......................................... 63,855
Note payable ............................................. --
Rents and leases payable ................................. 144,685
Payroll .................................................. 13,859
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Total post-petition liabilities .......................... 225,236
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Pre-Petition Liabilities:
Unsecured debt:
Accounts payable ......................................... 2,430,976
Accrued liabilities ...................................... 1,313,469
CVI note payable ......................................... 1,500,000
Priority debt:
Taxes .................................................... 163,111
Wages .................................................... 140,676
Other .................................................... --
Undersecured debt ........................................ 1,371,104
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Total pre-petition liabilities ........................... 6,919,336
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Other Liabilities:
Deferred revenue ......................................... 1,146,656
Financed insurance ....................................... 49,513
Flexible spending plans .................................. 346
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Total liabilities ........................................ 8,341,087
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Shareholders' Equity:
Common stock ............................................. 556,691,993
Common stock - warrants .................................. 18,248,590
Deferred compensation .................................... (760,793)
Unrealized gain/loss ..................................... (25,266)
Accumulated deficit ...................................... (579,380,420)
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Total shareholders equity ................................ (5,225,896)
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Total liabilities and shareholders' equity ............... $ 3,115,191
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NETWORK COMMERCE INC.
STATEMENTS OF OPERATIONS
(in thousands)
January
2003
(unaudited)
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Revenues .................................................. $ 133,503
Cost of Revenues .......................................... 41,423
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Gross Profit .............................................. 92,080
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Gross Profit % ........................................ 69%
Operating expenses:
Officer's Salaries ................................... 28,750
Other Salaries/Direct labor .......................... 50,612
Employee Benefits/Payroll Taxes ...................... 17,494
Insurance ............................................ 17,507
Rent ................................................. 64,759
General & Administration ............................. 213,862
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Total operating expenses .................................. 392,984
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Loss from operations ...................................... (300,904)
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Nonoperating (expense) income:
Other Income ......................................... 14,717
Interest income ...................................... 186
Interest expense ..................................... --
Other ................................................ (3,750)
Gain (Loss) on Sale of Assets ........................ --
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Total nonoperating (expense) income ....................... 11,153
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Loss before Taxes ......................................... (289,751)
Income Taxes .............................................. --
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Net loss (1) .............................................. $(289,751)
=========
(1) Includes non-cash items including the following: Depreciation $40,527,
insurance $17,489, deferred rent $49,659, deferred compensation $154,344,
software licenses $5,816.
NETWORK COMMERCE INC.
STATEMENT OF SOURCES AND USES
(in thousands)
January
2003
(unaudited)
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Beginning cash balance ................................... $ 241,599
Sources of cash:
Revenue ................................................ 42,546
Receivables ............................................ 6,104
Other .................................................. 23,348
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Total sources of cash ................................ 71,998
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Uses of cash:
Accounts payable ....................................... 108,557
Bank fees and charge backs ............................. 1,472
Payroll ................................................ 87,762
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Total uses of cash ................................... 197,791
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Total change in cash ..................................... (125,793)
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Ending cash balance ...................................... $ 115,806
=========
Case Number 02-23396
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Debtor NETWORK COMMERCE, INC. Report Mo/Yr 01-2003
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UST-14, SUMMARY OF DISBURSEMENTS
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INSTRUCTIONS: BEFORE COMPLETING THIS PAGE, prepare a UST-14 CONTINUATION SHEET
(see next page) for each bank account or other source of the debtor's funds. The
disbursement total from each CONTINUATION SHEET will be used to complete this
SUMMARY OF DISBURSEMENTS.
The debtor is responsible for providing accurate monthly disbursement totals for
purposes of calculating its obligation pursuant to 28 U.S.C. ss. 1930 (a)(6) to
pay statutory fees to the U.S. Trustee. The disbursement total encompasses all
payments made by the bankruptcy estate during the reporting month, whether made
directly by the debtor or by another party for the debtor. It includes checks
written and cash payments for inventory and equipment purchases, payroll and
related taxes and expenses, other operating costs, and debt reduction. It also
includes payments made pursuant to joint check arrangements and those resulting
from a sale or liquidation of the debtor's assets. The only transactions
normally excluded from the disbursement total are transfers within the same
reporting month between multiple debtor accounts.
A fee payment is due within 30 days after the end of each calendar quarter, or
on April 30, July 31, October 31, and January 31, respectively. Because the
amount billed is an estimate, the debtor is responsible for paying the correct
statutory fee based on its actual disbursements for the calendar quarter, or
portion thereof the debtor was in Chapter 11. Failure to pay statutory fees to
the U.S. Trustee is cause for conversion or dismissal of the case. A copy of the
statutory fee schedule may be found on the U.S. Trustee's website located at:
www.usdoj.gov/ust/r18/s_home.htm (select Library page)
If you have questions about how to compute the disbursement total, please call
the Bankruptcy Analyst assigned to your case at (206) 553-2000.
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Computation of Monthly Disbursement Total
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Total disbursements from Continuation Sheet(s) 230,039.00
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Cash payments not included in total above (if any)
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Disbursements made by other parties for the debtor (if any, explain)
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230,039.00
TOTAL DISBURSEMENTS THIS MONTH FROM ALL SOURCES
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At the end of this reporting month, did the debtor have any delinquent
statutory fees owing to the U.S. Trustee?
Yes |_| No |X| If "yes," list each quarter that is delinquent and
the amount due.
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(UST-14 CONTINUATION SHEETS, with attachments, should follow this page.)
Monthly Financial Report - Corporate or Partnership Debtor Page 5 of 14
United States Trustee - Western District of Washington (Revised Aug. 2000)
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Case Number 02-23396
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Debtor NETWORK COMMERCE, INC. Report Mo/Yr 01-2003
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UST-14, CONTINUATION SHEET
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
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INSTRUCTIONS: Prepare a CONTINUATION SHEET for each bank account or other source
of the debtor's funds and attach supporting documents as indicated on the
checklist below.
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Depository (bank) name Comerica
Account number 1891657171
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Purpose of this account (select one):
|X| General operating account
|_| General payroll account
|_| Tax deposit account (payroll, sales, gambling, or other taxes)
|_| Other (explain)
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Beginning cash balance 203,245.98
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Add: Transfers in from other estate bank accounts 112,940.91
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Cash receipts deposited to this account 31,976.68
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Financing or other loaned funds (identify source) 0.00
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Total cash available this month 348,163.57
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Subtract: Transfers out to other estate bank accounts 206,236.31
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Cash disbursements from this account 1,483.08
(total checks written plus cash withdrawals, if any)
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Adjustments, if any (explain) 0.00
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Ending cash balance 140,444.18
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Does this CONTINUATION SHEET include the following supporting documents, as required: Yes No
o A monthly bank statement (or trust account statement); |X| |_|
o A detailed list of receipts for that account (deposit log or receipts journal); |_| |_|
o A detailed list of disbursements for that account (check register or
disbursement journal); and, |_| |_|
o If applicable, a detailed list of funds received and/or disbursed by another
party for the debtor. |_| |_|
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UST-14 CONTINUATION SHEET, Number 1 of 6
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Case Number 02-23396
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Debtor NETWORK COMMERCE, INC. Report Mo/Yr 01-2003
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UST-14, CONTINUATION SHEET
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
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INSTRUCTIONS: Prepare a CONTINUATION SHEET for each bank account or other source
of the debtor's funds and attach supporting documents as indicated on the
checklist below.
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Depository (bank) name Comerica
Account number 600003446
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Purpose of this account (select one):
|_| General operating account
|_| General payroll account
|_| Tax deposit account (payroll, sales, gambling, or other taxes)
|X| Other (explain) Investment Account
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Beginning cash balance 55,866.11
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Add: Transfers in from other estate bank accounts 18,092.79
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Cash receipts deposited to this account 0.00
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Financing or other loaned funds (identify source) 0.00
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Total cash available this month 73,958.90
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Subtract: Transfers out to other estate bank accounts 72,919.83
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Cash disbursements from this account 0.00
(total checks written plus cash withdrawals, if any)
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Interest = 11.16
Adjustments, if any (explain) 12/31 Deposit in transit (1,039.07) (1,027.91)
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Ending cash balance 11.16
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Does this CONTINUATION SHEET include the following supporting documents, as required: Yes No
o A monthly bank statement (or trust account statement); |X| |_|
o A detailed list of receipts for that account (deposit log or receipts journal); |_| |_|
o A detailed list of disbursements for that account (check register or
disbursement journal); and, |_| |_|
o If applicable, a detailed list of funds received and/or disbursed by another
party for the debtor. |_| |_|
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UST-14 CONTINUATION SHEET, Number 2 of 6
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Case Number 02-23396
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Debtor NETWORK COMMERCE, INC. Report Mo/Yr 01-2003
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UST-14, CONTINUATION SHEET
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
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INSTRUCTIONS: Prepare a CONTINUATION SHEET for each bank account or other source
of the debtor's funds and attach supporting documents as indicated on the
checklist below.
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Depository (bank) name Comerica
Account number 1892013861
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Purpose of this account (select one):
|_| General operating account
|_| General payroll account
|_| Tax deposit account (payroll, sales, gambling, or other taxes)
|X| Other (explain) Checking
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Beginning cash balance (20,634.24)
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Add: Transfers in from other estate bank accounts 92,895.96
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Cash receipts deposited to this account 0.00
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Financing or other loaned funds (identify source) 0.00
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Total cash available this month 72,261.72
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Subtract: Transfers out to other estate bank accounts 0.00
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Cash disbursements from this account 129,136.12
(total checks written plus cash withdrawals, if any)
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Checks cut in Dec, Cashed in Jan = 20,579.23
Adjustments, if any (explain) Checks outstanding as of 01/31 = 36,295.16 56,874.40
Recon Adjust = 0.01
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Ending cash balance 0.00
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Does this CONTINUATION SHEET include the following supporting documents, as required: Yes No
o A monthly bank statement (or trust account statement); |X| |_|
o A detailed list of receipts for that account (deposit log or receipts journal); |_| |_|
o A detailed list of disbursements for that account (check register or
disbursement journal); and, |X| |_|
o If applicable, a detailed list of funds received and/or disbursed by another
party for the debtor. |_| |_|
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UST-14 CONTINUATION SHEET, Number 3 of 6
Accounts Payable
Vendor Payment Activity-Summary
Tran No Batch Tran Date Vendor Tran Amt HC
0000000000 APSC-0002878 1/2/03 VanguardGrou Vanguard Group 1,112.70
0000000000 APSC-0002878 1/2/03 eNom, Inc. eNom, Inc. 5,000.00
0000028757 APSC-0002879 1/3/03 WolpertCharl Charles Wolpert 500.00
0000028758 APSC-0002880 1/7/03 qwestz110054 Qwest 206 Z11 0054 642 37(see 223-1996 12,997.36
0000000000 APSC-0002881 1/8/03 eNom, Inc. eNom, Inc. 5,000.00
0000028759 APSC-0002882 1/9/03 MerrillPlace Merrill Place LLC 15,100.00
0000028760 APSC-0002882 1/9/03 PacificParki Pacific Parking 185.00
0000028762 APSC-0002883 1/10/03 WolpertCharl Charles Wolpert 1,250.00
0000028761 APSC-0002883 1/10/03 USpostalserv US Postal Service 250.00
0000000000 APSC-0002886 1/16/03 VanguardGrou Vanguard Group 1,112.70
0000028763 APSC-0002884 1/16/03 CriticalPath Critical Path Inc. 4,775.20
0000028765 APSC-0002884 1/16/03 Toucham54147 Touch America 54147066 5.08
0000028764 APSC-0002884 1/16/03 MichaelDMill Michael D. Miller 250.00
0000028766 APSC-0002885 1/16/03 Flexplanserv Flex-Plan Services, Inc. 1,132.44
0000000000 APSC-0002887 1/17/03 eNom, Inc. eNom, Inc. 6,000.00
0000028767 APSC-0002888 1/21/03 Regenceblues Regence BlueShield 815.68
0000028768 APSC-0002888 1/21/03 StateofWashi State of Washington Dept of Revenue 4,619.24
0000000000 APSC-0002889 1/23/03 eNom, Inc. eNom, Inc. 5,000.00
0000028769 APSC-0002890 1/27/03 AFCO AFCO, inc 14,681.66
Run Date: 2/14/03 2:52:48 PM
Business Date: 2/14/03 Page 1
Tran No Batch Tran Date Vendor Tran Amt HC
0000028771 APSC-0002890 1/27/03 CitySeaRev City of Seattle Revenue 2,411.37
0000028772 APSC-0002890 1/27/03 DeptOfL&I Department of Labor & Industries - WA 498.43
0000028775 APSC-0002890 1/27/03 VeriSign VeriSign, Inc 217.00
0000028773 APSC-0002890 1/27/03 qwest2231996 Qwest 206-223-1996 1,712.90
0000028770 APSC-0002890 1/27/03 cityseafinan City of Seattle, Finance Division 180.13
0000028774 APSC-0002890 1/27/03 ustrustee United States Trustee 3,750.00
0000000000 APSC-0002891 1/28/03 eNom, Inc. eNom, Inc. 5,000.00
0000028778 APSC-0002892 1/29/03 Siliconval Silicon Valley Expert Witness Group, Inc 15,000.00
Report Total: 108,556.89
Run Date: 2/14/03 2:52:48 PM
Business Date: 2/14/03 Page 2
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Case Number 02-23396
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Debtor NETWORK COMMERCE, INC. Report Mo/Yr 01-2003
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UST-14, CONTINUATION SHEET
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
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INSTRUCTIONS: Prepare a CONTINUATION SHEET for each bank account or other source
of the debtor's funds and attach supporting documents as indicated on the
checklist below.
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Depository (bank) name Comerica
Account number 1891657221
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Purpose of this account (select one):
|_| General operating account
|_| General payroll account
|_| Tax deposit account (payroll, sales, gambling, or other taxes)
|X| Other (explain) Insurance
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Beginning cash balance (1,353.50)
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Add: Transfers in from other estate bank accounts 0.00
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Cash receipts deposited to this account 0.00
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Financing or other loaned funds (identify source) 0.00
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Total cash available this month (1,353.50)
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Subtract: Transfers out to other estate bank accounts 0.00
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Cash disbursements from this account 0.00
(total checks written plus cash withdrawals, if any)
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Adjustments, if any (explain) Checks outstanding 01/31 1,353.50
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Ending cash balance 0.00
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Does this CONTINUATION SHEET include the following supporting documents, as required: Yes No
o A monthly bank statement (or trust account statement); |X| |_|
o A detailed list of receipts for that account (deposit log or receipts |_| |_|
journal);
o A detailed list of disbursements for that account (check register or
disbursement journal); and, |_| |_|
o If applicable, a detailed list of funds received and/or disbursed by another
party for the debtor. |_| |_|
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UST-14 CONTINUATION SHEET, Number 4 of 6
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Case Number 02-23396
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Debtor NETWORK COMMERCE, INC. Report Mo/Yr 01-2003
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UST-14, CONTINUATION SHEET
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
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INSTRUCTIONS: Prepare a CONTINUATION SHEET for each bank account or other source
of the debtor's funds and attach supporting documents as indicated on the
checklist below.
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Depository (bank) name Comerica
Account number 1891657189
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Purpose of this account (select one):
|_| General operating account
|X| General payroll account
|_| Tax deposit account (payroll, sales, gambling, or other taxes)
|_| Other (explain) Checking
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Beginning cash balance 4,474.64
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Add: Transfers in from other estate bank accounts 96,286.63
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Cash receipts deposited to this account 0.00
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Financing or other loaned funds (identify source) 0.00
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Total cash available this month 100,761.27
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Subtract: Transfers out to other estate bank accounts 0.00
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Cash disbursements from this account 99,419.80
(total checks written plus cash withdrawals, if any)
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Checks cut in Nov/Dec, cashed in Jan = 10,437.78
Adjustments, if any (explain) Outstanding Checks as of 1/31 = 3,220.75 13,658.53
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Ending cash balance 15,000.00
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Does this CONTINUATION SHEET include the following supporting documents, as required: Yes No
o A monthly bank statement (or trust account statement); |X| |_|
o A detailed list of receipts for that account (deposit log or receipts journal); |_| |_|
o A detailed list of disbursements for that account (check register or
disbursement journal); and, |X| |_|
o If applicable, a detailed list of funds received and/or disbursed by another
party for the debtor. |_| |_|
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UST-14 CONTINUATION SHEET, Number 5 of 6
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Case Number 02-23396
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Debtor NETWORK COMMERCE, INC. Report Mo/Yr 01-2003
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UST-14, CONTINUATION SHEET
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
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INSTRUCTIONS: Prepare a CONTINUATION SHEET for each bank account or other source
of the debtor's funds and attach supporting documents as indicated on the
checklist below.
- -------------------------------------------------------------------------------
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Depository (bank) name Comerica
Account number 1891657239
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Purpose of this account (select one):
|_| General operating account
|_| General payroll account
|_| Tax deposit account (payroll, sales, gambling, or other taxes)
|X| Other (explain) Lockbox
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Beginning cash balance
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Add: Transfers in from other estate bank accounts 0.00
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Cash receipts deposited to this account 40,021.08
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Financing or other loaned funds (identify source) 0.00
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Total cash available this month 40,021.08
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Subtract: Transfers out to other estate bank accounts 40,021.08
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Cash disbursements from this account 0.00
(total checks written plus cash withdrawals, if any)
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Adjustments, if any (explain) 0.00
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Ending cash balance 0.00
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Does this CONTINUATION SHEET include the following supporting documents, as required: Yes No
o A monthly bank statement (or trust account statement); |X| |_|
o A detailed list of receipts for that account (deposit log or receipts journal); |_| |_|
o A detailed list of disbursements for that account (check register or
disbursement journal); and, |_| |_|
o If applicable, a detailed list of funds received and/or disbursed by another
party for the debtor. |_| |_|
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UST-14 CONTINUATION SHEET, Number 6 of 6
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Case Number 02-23396
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Debtor NETWORK COMMERCE, INC. Report Mo/Yr 01-2003
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UST-14, SUMMARY OF DISBURSEMENTS (contd.)
Payments on Pre-Petition Unsecured Debt (requires court approval)
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Did the debtor, or another party on behalf of the debtor, make any payments
during this reporting month on pre-petition unsecured debt? Yes |_| No |X|
If "Yes", list each payment.
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Payment Date of court
Payee's name Nature of payment Payment date amount approval
- ------------------------------- ------------------------------ ----------------- ------------ ---------------
- ------------------------------- ------------------------------ ----------------- ------------ ---------------
- ------------------------------- ------------------------------ ----------------- ------------ ---------------
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Payments to Attorneys and Other Professionals (requires court approval)
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Did the debtor, or another party on behalf of the debtor, make any payments
during this reporting month to a professional such as an attorney, accountant,
realtor, appraiser, auctioneer, business consultant, or other professional
person? Yes |_| No |X| If "Yes", list each payment.
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Payment Date of court
Professional's name Type of work performed Payment date amount approval
- ------------------------------- ------------------------------ ----------------- ------------ ---------------
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Payments to an Officer, Director, Partner, or Other Insider of The Debtor
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Did the debtor, or another party on behalf of the debtor, make any payments
during this reporting month to an officer, director, partner, or other insider
of the debtor? Yes |X| No |_| If "Yes", list each payment.
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Payment Purpose of
Payee's name Relationship to Debtor Payment date amount payment
- ------------------------------- ------------------------------ ----------------- ------------ ---------------
N. Scott Dickson Acting CEO 01/31/03 $7,291.67 Salary
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N. Scott Dickson Acting CEO 01/15/03 $7,291.67 Salary
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Joseph Shatara VP Ehost 01/31/03 $7,083.33 Salary
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Joseph Shatara VP Ehost 01/15/03 $7,083.33 Salary
INSTRUCTIONS: Use the last column to describe the purpose of each payment, such
as gross wages or salary, reimbursement for business expenses, loan repayment,
advance, draw, bonus, dividend, stock distribution, or other reason for the
payment (explain).
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Monthly Financial Report - Corporate or Partnership Debtor Page 6 of 14
United States Trustee - Western District of Washington (Revised Aug. 2000)
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Case Number 02-23396
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Debtor NETWORK COMMERCE, INC. Report Mo/Yr 01-2003
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UST-15, STATEMENT OF AGED RECEIVABLES
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INSTRUCTIONS: Complete all portions of UST-15, STATEMENT OF AGED RECEIVABLES,
unless the debtor asserts the following two statements are true for this
reporting month:
1) At the beginning of the reporting month, the debtor did not have
any uncollected receivables from prior months which includes both
pre-petition and post-petition accounts receivable; and,
2) During the reporting month, the debtor did not have any
receivables activity, including the accrual of new accounts
receivable, or the collection or writeoff of accounts receivable
from prior months.
Check here |_| if the debtor asserts that both statements are correct and skip
to UST-16, STATEMENT OF POST-PETITION PAYABLES, on the next page.
- -------------------------------------------------------------------------------
Accounts Receivable Aging
- ----------------- -------------- --------------- -------------- -------------- --------------- --------------
Balance at Current Past due Past due Past due Uncollectible
month end portion 31-60 days 61-90 days over 90 days receivables
- ----------------- -------------- --------------- -------------- -------------- --------------- --------------
Pre-petition 2,100,747.07 109,887.95 (70.81) -- 19,054.09 1,971,875.84
receivables
- ----------------- -------------- --------------- -------------- -------------- --------------- --------------
Post-petition 298,106.61 102,915.60 195,191.01 -- -- --
receivables
- ----------------- -------------- --------------- -------------- -------------- --------------- --------------
TOTALS 2,398,853.68 212,803.55 195,120.20 -- 19,054.09 1,971,875.84
- ----------------- -------------- --------------- -------------- -------------- --------------- --------------
Explain what efforts the debtor made during this reporting month to collect
receivables over 60 days past due.
Email, phone calls, sending overnight envelopes to customers.
- -------------------------------------------------------------------------------
Does the debtor have any accounts receivable due from an officer, director,
partner, or other insider of the debtor? If yes, explain.
Yes, Notes from prior acquisitions = 108,642.60
Loans to former officers = 461,753.41
- -------------------------------------------------------------------------------
Accounts Receivable Reconciliation
- ---------------------------------------------------------- --------------------------------------------------
Closing balance from prior month 2,318,704.43
- ---------------------------------------------------------- --------------------------------------------------
New accounts receivable added this month 152,856.45
- ---------------------------------------------------------- --------------------------------------------------
Subtotal 2,471,560.88
- ---------------------------------------------------------- --------------------------------------------------
Less accounts receivable collected 72,707.20
- ---------------------------------------------------------- --------------------------------------------------
Closing balance for current month 2,398,853.68
- ---------------------------------------------------------- --------------------------------------------------
Monthly Financial Report - Corporate or Partnership Debtor Page 7 of 14
United States Trustee - Western District of Washington (Revised Aug. 2000)
---------
Case Number 02-23396
---------
Debtor NETWORK COMMERCE, INC. Report Mo/Yr 01-2003
- --------------------------------------------------------------------- ---------
UST-16, STATEMENT OF POST-PETITION PAYABLES
PART A - TAXES
- -------------------------------------------------------------------------------
INSTRUCTIONS: Complete both pages of PART A - TAXES unless the debtor asserts
the following statement is true for this reporting month:
At the end of this reporting month, the debtor did not have any unpaid
post-petition taxes which includes both current and delinquent tax
obligations.
Check here |_| if the debtor asserts the statement is correct, and skip to PART
B - OTHER PAYABLES on Page 10.
- -------------------------------------------------------------------------------
Reconciliation of Unpaid Post-Petition Taxes
- ------------------------------- --------------------- ----------------- ------------------- ------------------
Type of tax (1) (2) (3) (4)
Post-petition Unpaid
Unpaid taxes accrued Post-petition tax post-petition
post-petition taxes this month payments made taxes at end of
from prior (new this reporting reporting month
reporting month obligations) month (Column 1+2-3=4)
- ------------------------------- --------------------- ----------------- ------------------- ------------------
Federal Taxes
- ------------------------------- --------------------- ----------------- ------------------- ------------------
Employee withholding taxes 0.00 13,479.71 13,479.71 0.00
- ------------------------------- --------------------- ----------------- ------------------- ------------------
FICA/Medicare--Employee 0.00 6,012.84 6,012.84 0.00
- ------------------------------- --------------------- ----------------- ------------------- ------------------
FICA/Medicare--Employer 0.00 6,012.82 6,012.82 0.00
- ------------------------------- --------------------- ----------------- ------------------- ------------------
Unemployment 0.00 505.63 505.63 0.00
- ------------------------------- --------------------- ----------------- ------------------- ------------------
State Taxes
- ------------------------------- --------------------- ----------------- ------------------- ------------------
Dept. of Revenue 4,619.24 2,002.55 4,619.24 2,002.55
- ------------------------------- --------------------- ----------------- ------------------- ------------------
Dept. of Labor & Industries 498.43 280.00 498.43 280.00
- ------------------------------- --------------------- ----------------- ------------------- ------------------
Empl. Security Dept. 0.00 3,095.11 3,095.11 0.00
- ------------------------------- --------------------- ----------------- ------------------- ------------------
Other Taxes
Local city/county -
Seattle Business Improvement 180.13 0.00 180.13 0.00
- ------------------------------- --------------------- ----------------- ------------------- ------------------
Gambling 0.00
- ------------------------------- --------------------- ----------------- ------------------- ------------------
Personal property 0.00
- ------------------------------- --------------------- ----------------- ------------------- ------------------
Real property 0.00
- ------------------------------- --------------------- ----------------- ------------------- ------------------
Other
Seattle B&O 2,411.37 554.04 2,411.37 554.04
- ------------------------------- --------------------- ----------------- ------------------- ------------------
Total Unpaid Post-Petition Taxes $ 2,836.59
- ------------------------------------------------------------------------------------------- ------------------
Monthly Financial Report - Corporate or Partnership Debtor Page 8 of 14
United States Trustee - Western District of Washington (Revised Aug. 2000)
---------
Case Number 02-23396
---------
Debtor NETWORK COMMERCE, INC. Report Mo/Yr 01-2003
- --------------------------------------------------------------------- ---------
UST-16, STATEMENT OF POST-PETITION PAYABLES
PART A - TAXES (contd.)
Delinquent Tax Reports and Tax Payments
- ----------------------- ------------------------- --------------------- --------------------- ---------------
Taxing agency Tax reporting period Report due date Payment due date Amount due
- ----------------------- ------------------------- --------------------- --------------------- ---------------
0
- ----------------------- ------------------------- --------------------- --------------------- ---------------
- ----------------------- ------------------------- --------------------- --------------------- ---------------
- ----------------------- ------------------------- --------------------- --------------------- ---------------
- ----------------------- ------------------------- --------------------- --------------------- ---------------
- ----------------------- ------------------------- --------------------- --------------------- ---------------
- ----------------------- ------------------------- --------------------- --------------------- ---------------
- -------------------------------------------------------------------------------
Explain the reason for any delinquent tax reports or tax payments:
- -------------------------------------------------------------------------------
Monthly Financial Report - Corporate or Partnership Debtor Page 9 of 14
United States Trustee - Western District of Washington (Revised Aug. 2000)
---------
Case Number 02-23396
---------
Debtor NETWORK COMMERCE, INC. Report Mo/Yr 01-2003
- --------------------------------------------------------------------- ---------
UST-16, STATEMENT OF POST-PETITION PAYABLES
PART B - OTHER PAYABLES
- -------------------------------------------------------------------------------
INSTRUCTIONS: Complete both pages of PART B - OTHER PAYABLES unless the debtor
asserts that this statement is true for this reporting month:
Except for taxes and professional fees disclosed in PART A and PART C
of this report, respectively, the debtor has no other unpaid
post-petition payables from the current reporting month, or from any
prior reporting months.
Check here |_| if the debtor asserts the statement is correct, and skip to PART
C - ESTIMATED PROFESSIONAL FEES on Page 12.
- -------------------------------------------------------------------------------
Reconciliation of Post-Petition Payables (excluding taxes and professional fees)
- --------------------------------------------------------------------------- ---------------------------------
Closing balance from prior month 182,387.72
- --------------------------------------------------------------------------- ---------------------------------
New payables added this month 132,568.71
- --------------------------------------------------------------------------- ---------------------------------
Subtotal 314,956.43
- --------------------------------------------------------------------------- ---------------------------------
Less payments made this month 100,847.72
- --------------------------------------------------------------------------- ---------------------------------
Closing balance for this reporting month 214,108.71
- --------------------------------------------------------------------------- ---------------------------------
Breakdown of Closing Balance by Age
- --------------------------------------------------------------------------- ---------------------------------
Current portion 25,968.43
- --------------------------------------------------------------------------- ---------------------------------
Past due 1-30 days 58,698.64
- --------------------------------------------------------------------------- ---------------------------------
Past due 31-60 days 129,441.64
- --------------------------------------------------------------------------- ---------------------------------
Past due 61-90 days
- --------------------------------------------------------------------------- ---------------------------------
Past due over 90 days
- --------------------------------------------------------------------------- ---------------------------------
Total $ 214,108.71
- --------------------------------------------------------------------------- ---------------------------------
For accounts payable more than 30 days past due, explain why payment has not
been made:
Merrill Place LLC - deferred rent
Compass Communications - disputed
Commodore Casino, Opt In Inc. - attempting to verify receipt of funds
Remainder - to be paid in February
- -------------------------------------------------------------------------------
Monthly Financial Report - Corporate or Partnership Debtor Page 10 of 14
United States Trustee - Western District of Washington (Revised Aug. 2000)
---------
Case Number 02-23396
---------
Debtor NETWORK COMMERCE, INC. Report Mo/Yr 01-2003
- --------------------------------------------------------------------- ---------
UST-16, STATEMENT OF POST-PETITION PAYABLES
PART B - OTHER PAYABLES (contd.)
- -------------------------------------------------------------------------------
INSTRUCTIONS: List each post-petition payable delinquent more than 30 days.
Alternatively, attach the debtor's accounts payable aging report if the report:
1) clearly separates pre-and post-petition accounts payable, and, 2) identifies
each delinquent payable by vendor's name, invoice date, invoice amount, and
payment due date.
- -------------------------------------------------------------------------------
Delinquent Post-Petition Payables (excluding taxes and professional fees)
- ---------------------------- -------------------------- -------------------------- --------------------------
Vendor name Invoice date Invoice amount Payment due date
- ---------------------------- -------------------------- -------------------------- --------------------------
Please see attached
Monthly Financial Report - Corporate or Partnership Debtor Page 11 of 14
United States Trustee - Western District of Washington (Revised Aug. 2000)
Case Number 02-23396
Report Mo/Yr January 2003
UST16, STATEMENT OF POST-PETITION PAYABLES
Part B - OTHER PAYABLES
Delinquent Post-Petition Payables (excluding taxes and professional fees)
Payment
Vendor name Invoice date Invoice amount due date
- ----------------------------- ------------ -------------- ----------
ADP Investor Communications 11/22/2002 127.30 12/22/2002
Allied Security 12/12/2002 324.00 12/22/2002
AT&T 11/13/2002 7.38 12/13/2002
AT&T Wireless 12/9/2002 592.49 12/9/2002
AT&T Wireless 11/27/2002 28.06 11/27/2002
Commodore Casino 12/31/2002 3,750.00 12/31/2002
Compass Communications 11/19/2002 911.20 12/14/2002
Compass Communications 10/15/2002 4,026.59 11/9/2002
Compass Communications 11/15/2002 3,700.00 12/10/2002
Compass Communications 11/19/2002 941.58 12/14/2002
Ice Systems, Inc. 11/22/2002 59.80 12/22/2002
Ironport Systems 11/22/2002 1,800.00 11/22/2002
Merrill Place LLC 11/1/2002 47,512.67 11/1/2002
Merrill Place LLC 12/1/2002 47,512.67 12/1/2002
OptIn Inc. 12/31/2002 4,205.27 12/31/2002
Qwest 12/11/2002 12,970.26 12/31/2002
Qwest 11/16/2002 46.12 12/8/2002
Team Mechanical, Inc. 11/11/2002 651.00 11/21/2002
Touch America 11/16/2002 275.25 12/6/2002
---------
Case Number 02-23396
---------
Debtor NETWORK COMMERCE, INC. Report Mo/Yr 01-2003
- --------------------------------------------------------------------- ---------
UST-16, STATEMENT OF POST-PETITION PAYABLES
PART C - ESTIMATED PROFESSIONAL FEES
- -------------------------------------------------------------------------------
INSTRUCTIONS: Report only post-petition professional fees and expenses. To the
extent possible, use billing statements to report the actual amounts due. If
billing statements are not available, use the best information available to
estimate the fees and costs.
- -------------------------------------------------------------------------------
Fees and Total estimated
Amount of retainer Fees and expenses expenses added fees and expenses
Type of professional (if applicable) from prior months this month at month end
- ------------------------------- -------------------- ------------------- ------------------ ---------------------
Debtor's counsel 75,000 44,000 86,000 130,000
- ------------------------------- -------------------- ------------------- ------------------ ---------------------
Debtor's accountant
- ------------------------------- -------------------- ------------------- ------------------ ---------------------
Debtor's other professional
- ------------------------------- -------------------- ------------------- ------------------ ---------------------
Trustee's counsel
- ------------------------------- -------------------- ------------------- ------------------ ---------------------
Creditors' Committee Counsel
- ------------------------------- -------------------- ------------------- ------------------ ---------------------
Creditors' Committee other
- ------------------------------------------------------------------------------------------- ---------------------
Total estimated post-petition professional fees and costs $ 130,000
- ------------------------------------------------------------------------------------------- ---------------------
Monthly Financial Report - Corporate or Partnership Debtor Page 12 of 14
United States Trustee - Western District of Washington (Revised Aug. 2000)
---------
Case Number 02-23396
---------
Debtor NETWORK COMMERCE, INC. Report Mo/Yr 01-2003
- --------------------------------------------------------------------- ---------
UST-17, STATEMENT OF OPERATIONS
INSTRUCTIONS: Answer each question fully and attach additional sheets if necessary to provide a Yes No
complete response.
- -------------------------------------------------------------------------------------------------------- ----- ------
Question 1 - Sale of Debtor's Assets. Did the debtor, or another party on behalf
of the debtor, sell, transfer, or otherwise dispose of any of the
debtor's assets during the reporting month? Include only sales out of the
ordinary course. If yes, identify each asset, date of court approval for the
sale, method of disposition, and gross and net sale proceeds received. If real
property was sold, attach a copy of the closing statement. If assets were sold
at auction, attach a copy of the auctioneer's report. |_| |X|
- -------------------------------------------------------------------------------------------------------- ----- ------
Question 2 - Financing. During the reporting month, did the debtor receive any
funds from an outside funding source? If yes, indicate the source of
funds, date paid to debtor, dollar amount, and date of court approval. |_| |X|
- -------------------------------------------------------------------------------------------------------- ----- ------
Question 3 - Insider Loans. During the reporting month, did the debtor receive
any funds from an officer, director, partner, or other insider of the
debtor? If yes, indicate the source of funds, date paid to debtor, dollar
amount, and date of court approval. |_| |X|
- -------------------------------------------------------------------------------------------------------- ----- ------
Question 4 - Insurance and Bond Coverage. Did the debtor renew or replace any
insurance policies during this reporting month? If yes, attach a
certificate of insurance for each renewal or change in coverage. |_| |X|
Were any of the debtor's insurance policies canceled or otherwise terminated for
any reason during the reporting month? If yes, explain. |_| |X|
Were any claims made during this reporting month against the debtor's bond?
(Answer "No" if the debtor is not required to have a bond.) If yes,
explain. |_| |X|
- -------------------------------------------------------------------------------------------------------- ----- ------
Monthly Financial Report - Corporate or Partnership Debtor Page 13 of 14
United States Trustee - Western District of Washington (Revised Aug. 2000)
---------
Case Number 02-23396
---------
Debtor NETWORK COMMERCE, INC. Report Mo/Yr 01-2003
- --------------------------------------------------------------------- ---------
UST-17, STATEMENT OF OPERATIONS (contd.)
- -------------------------------------------------------------------------------
Question 5 - Personnel Changes. Complete the following:
Full-time Part-time
----------------- ---------------
Number of employees at beginning of month 14 0
----------------- ---------------
Employees added - 5 employees changed from full-time to part-time 0 5
----------------- ---------------
Employees resigned/terminated 6 0
----------------- ---------------
Number employees at end of month 8 5
----------------- ---------------
Gross Monthly Payroll and Taxes $92,373
- --------------------------------------------------------------------------------------------- ---------------
Question 6 - Significant Events. Explain any significant new developments during
the reporting month.
The Debtor rejected all of its personal property leases in January with
the exception of two. It is proposing to sell the hosting side of its
business in February and continues to look for buyers for the other
aspects of its business.
- -------------------------------------------------------------------------------
Question 7 - Case Progress. Explain what progress the debtor made during the
reporting month toward confirmation of a plan of reorganization.
The Debtor rejected all of its personal property leases in January with the
exception of two. It is proposing to sell the hosting side of its business
in February and continues to look for buyers for the other aspects of
its business.
- -------------------------------------------------------------------------------
WHERE TO FILE A MONTHLY FINANCIAL REPORT: Local Bankruptcy Rule 2015-2(a)
requires the debtor to file its monthly financial report with the U.S.
Bankruptcy Court, and to serve copies of such report on the U.S. Trustee, and on
each member of any committees elected or appointed pursuant to the Bankruptcy
Code and to their authorized agents.
File the original (select only one) Send a copy to each of the following:
- ------------------------------------------- ------------------------------------
For a chapter 11 case filed in Seattle, WA: Office of the United States Trustee
600 Park Place Building
United States Bankruptcy Court 1200 Sixth Avenue
315 Park Place Building Seattle, WA 98101
1200 Sixth Avenue
Seattle, WA 98101
If applicable, each member of any committees
elected or appointed, and to their authorized
For a chapter 11 case filed in Tacoma, WA: agents.
United States Bankruptcy Court Debtor's counsel.
1717 Pacific Avenue, Suite 2100
Tacoma, WA 98402
Monthly Financial Report - Corporate or Partnership Debtor Page 14 of 14
United States Trustee - Western District of Washington (Revised Aug. 2000)