UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
IN RE: TAL WIRELESS NETWORKS, INC. CASE NO: 97-58435 MM
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CHAPTER 11
MONTHLY OPERATING REPORT
(GENERAL BUSINESS CASE)
- ------------------------------------------------
SUMMARY OF FINANCIAL STATUS
MONTH ENDED February, 2000
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1. Debtor in possession hereby submits this Monthly Operating Report on the Accrual Basis of accounting (or if checked
here ___ the Office of the U.S. Trustee or the Court has approved the Cash Basis of Accounting for the Debtor).
Dollars reported in ($ _____).
END OF END OF AS OF
CURRENT PRIOR PETITION
2. ASSET/LIABILITY SUMMARY MONTH MONTH FILING
----------------- --------------- ----------------
Current Assets (Market Value) $121,863 $122,522 $245,867
----------------- --------------- ----------------
Total Assets (Market Value) $3,121,863 $3,122,522 $5,665,985
----------------- --------------- ----------------
Current Liabilities $329,314 $316,410 $0
----------------- --------------- ----------------
Total Liabilities $5,696,349 $5,683,445 $5,467,035
----------------- --------------- ----------------
PETITION
CURRENT PRIOR DATE TO
3. STATEMENT OF CASH RECEIPTS & DISBURSEMENTS FOR MONTH MONTH MONTH MONTH END
----- ----- ---------
a. Total Receipts $0 $0 $285,557
----------------- --------------- ----------------
b. Total Disbursements $659 $619 $180,175
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c. Excess (Deficiency) of Receipts Over Disbursements (a - b) ($659) ($619) $105,382
----------------- --------------- ----------------
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d. Cash Balance Beginning of Month $122,522 $123,141
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e. Cash Balance End of Month (c + d) $121,863 $ 122,522
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----------------- ---------------
4. POST-PETITION LIABILITIES & RECEIVABLES RECEIVABLES LIABILITIES
----------- -----------
Balance at End of Previous Month $0 $316,410
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Balance at End of Current Month $0 $329,314
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5. PAST DUE POST-PETITION LIABILITIES
Balance at End of Previous Month (over 30 days) $0
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Balance at End of Current Month (over 30 days) $0
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YES NO
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6. Are all federal, state, and local taxes current? (if no, attach schedule of unpaid items) X
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7. Have any payments been made to pre-petition creditors, other than payments in
the normal course to secured creditors or lessors? (if yes, attach listing including
date of payment, amount of payment and name of payee) X
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8. Have any payments been made to officers, insiders, shareholders,
relatives? (if yes, attach listing including date of payment, amount and
reason for payment, and name of payee) X
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9. Have any payments been made to professionals? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
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10. If you answered yes to line 7,8, or 9, were all such payments approved by the court? # N/A
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11. Is the estate insured for replacement cost of assets and for general liability? N/A
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12. Are U.S. Trustee quarterly fees current? X
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I declare under penalty of perjury that I have reviewed the above summary
and attached financial statements, and after making reasonable inquiry
believe that these documents are correct.
Date: 3/14/00 Richard J Redett
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Responsible Individual
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED February, 2000
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($ )
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ASSETS
FROM SCHEDULES MARKET VALUE
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CURRENT ASSETS
1 Cash and cash equivalents - unrestricted $121,863
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2 Cash and cash equivalents - restricted $0
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3 Accounts receivable (net) A $0
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4 Inventory B $0
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5 Prepaid expenses $0
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6 Other:
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7
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8 TOTAL CURRENT ASSETS $121,863
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PROPERTY AND EQUIPMENT (MARKET VALUE)
9 Real property C $0
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10 Machinery and equipment D $0
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11 Furniture and fixtures D $0
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12 Office equipment D $0
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13 Leasehold improvements D $0
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14 Vehicles D $0
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15 Other: D
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16 D
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17 D
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18 D
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19 D
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20 TOTAL PROPERTY AND EQUIPMENT $0
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OTHER ASSETS
21 Notes receivable-net of allowances $3,000,000
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22 Investment-NST $0
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23 Investment-subs $0
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24 Accounts receivable-intercompany net of allowances $0
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25 TOTAL OTHER ASSETS $3,000,000
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26 TOTAL ASSETS $3,121,863
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NOTE:
Indicate the method used to estimate the market value of assets
(e.g., appraisals; familiarity with comparable market prices,
etc.) and the date the value was determined.
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LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($ )
--------
LIABILITIES FROM SCHEDULES
POST-PETITION --------------
CURRENT LIABILITIES
27 Salaries and wages
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28 Payroll taxes
--------------------
29 Real and personal property taxes
--------------------
30 Income taxes
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31 Notes payable (short term)
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32 Accounts payable (trade) A
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33 Real property lease arrearage
--------------------
34 Personal property lease arrearage
--------------------
35 Accrued professional fees $304,314
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36 Current portion of long-term debt (due within 12 months)
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37 Other:
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38 Unearned Deposit for legal fees $25,000
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39
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40 TOTAL CURRENT LIABILITIES $329,314
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41 LONG-TERM DEBT, NET OF CURRENT PORTION
--------------------
42 TOTAL POST-PETITION LIABILITIES $329,314
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PRE-PETITION LIABILITIES (ALLOWED AMOUNT)
43 Secured claims E
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44 Priority unsecured claims E $101,776
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45 General unsecured claims E $5,265,259
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46 TOTAL PRE-PETITION LIABILITIES $5,367,035
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47 TOTAL LIABILITIES $5,696,349
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EQUITY (DEFICIT)
48 Preferred Stock $80,000
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49 Common Stock $28,846
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50 Additional Paid-In Capital $18,461,441
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51 Accumulated Deficit ($21,110,030)
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52 Market value adjustment ($34,743)
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53 TOTAL EQUITY (DEFICIT) ($2,574,486)
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54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $3,121,863
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SCHEDULES
(GENERAL BUSINESS CASE)
($ )
--------
SCHEDULE A
ACCOUNTS RECEIVABLE(NET)/PAYABLE
ACCOUNTS ACCOUNTS PAYABLE
Receivables and Payables Ageings RECEIVABLE [POST PETITION] POST PETITION DEBT
---------- ------------- ------------------
0 -30 Days
----------------- ------------------
---
31-60 Days
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61-90 Days $0
----------------- ------------------ -------------------
91+ Days
----------------- ------------------ ---
Total accounts receivable/payable $0 $0
----------------- ------------------
------------------
Allowance for doubtful accounts
-----------------
Accounts receivable (net) $0
-----------------
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SCHEDULE B
INVENTORY/COST OF GOODS SOLD
TYPES AND AMOUNT OF INVENTORY(IES) COST OF GOODS SOLD
- ---------------------------------- ------------------
INVENTORY(IES) Inventory Beginning of Month --------------------
BALANCE AT
END OF MONTH Add -
Retail/Restaurants - Net purchases
--------------------
Product for resale Direct labor
---------------------- --------------------
Manufacturing overhead
--------------------
Distribution - Freight in
--------------------
Product for resale Other:
----------------------
------------------------ --------------------
Manufacturer -
------------------------ --------------------
Raw materials
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Work-in-progress Less -
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Finished goods Inventory End of Month
---------------------- --------------------
Shrinkage
--------------------
Other - Personal Use
---------------------- --------------------
Explain
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Cost of Goods Sold $0
--------------------------- --------------------
--------------------
TOTAL $0
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METHOD OF INVENTORY CONTROL INVENTORY VALUATION METHODS
- --------------------------- ---------------------------
Do you have a functioning perpetual inventory system? Indicate by a checkmark method of inventory valuation used.
Yes No
---- ---
How often do you take a complete physical inventory? Valuation methods -
FIFO cost
--------------------
Weekly LIFO cost
---- --------------------
Monthly Lower of cost or
----
Quarterly market
---- --------------------
Semi-annually Retail method
---- --------------------
Annually
----
Other -
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Date of last physical inventory was Unknown Explain
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Date of next physical inventory is N/A
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SCHEDULE C
REAL PROPERTY
DESCRIPTION COST MARKET VALUE
- ----------- ---- ------------
None
- ------------------------------------------------------------------ -------------------- -----------------
- ------------------------------------------------------------------ -------------------- -----------------
- ------------------------------------------------------------------ -------------------- -----------------
- ------------------------------------------------------------------ -------------------- -----------------
TOTAL $0 $0
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SCHEDULE D
OTHER DEPRECIABLE ASSETS
DESCRIPTION COST MARKET VALUE
- ----------- ---- ------------
MACHINERY & EQUIPMENT -
- ------------------------------------------------------------------ -------------------- -----------------
- ------------------------------------------------------------------ -------------------- -----------------
- ------------------------------------------------------------------ -------------------- -----------------
- ------------------------------------------------------------------ -------------------- -----------------
TOTAL $0 $0
-------------------- -----------------
-------------------- -----------------
FURNITURE & FIXTURES -
- ------------------------------------------------------------------ -------------------- -----------------
- ------------------------------------------------------------------ -------------------- -----------------
- ------------------------------------------------------------------ -------------------- -----------------
- ------------------------------------------------------------------ -------------------- -----------------
TOTAL $0 $0
-------------------- -----------------
-------------------- -----------------
OFFICE EQUIPMENT -
- ------------------------------------------------------------------ -------------------- -----------------
- ------------------------------------------------------------------ -------------------- -----------------
- ------------------------------------------------------------------ -------------------- -----------------
TOTAL $0 $0
-------------------- -----------------
-------------------- -----------------
LEASEHOLD IMPROVEMENTS -
- ------------------------------------------------------------------ -------------------- -----------------
- ------------------------------------------------------------------ -------------------- -----------------
- ------------------------------------------------------------------ -------------------- -----------------
- ------------------------------------------------------------------ -------------------- -----------------
TOTAL $0 $0
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VEHICLES -
- ------------------------------------------------------------------ -------------------- -----------------
- ------------------------------------------------------------------ -------------------- -----------------
- ------------------------------------------------------------------ -------------------- -----------------
- ------------------------------------------------------------------ -------------------- -----------------
TOTAL $0 $0
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SCHEDULE E
PRE-PETITION LIABILITIES
CLAIMED ALLOWED
LIST TOTAL CLAIMS FOR EACH CLASSIFICATION - AMOUNT AMOUNT (b)
- ------------------------------------------- ------ ----------
Secured claims (a)
-------------------- -----------------
Priority claims other than taxes
-------------------- -----------------
Priority tax claims $101,776
-------------------- -----------------
General unsecured claims $5,265,259
-------------------- -----------------
(a) List total amount of claims even if under secured.
(b) Estimated amount of claim to be allowed after compromise or
litigation. As an example, you are a defendant in a lawsuit
alleging damage of $10,000,000 and a proof of claim is
filed in that amount. You believe that you can settle the
case for a claim of $3,000,000. For Schedule E reporting
purposes you should list $10,000,000 as the Claimed Amount
and $3,000,000 as the Allowed Amount.
SCHEDULE F
RENTAL INCOME INFORMATION
Not Applicable to General Business Cases.
STATEMENT OF OPERATIONS Effective 1/1/95
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED February, 2000
--------------
$
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CURRENT MONTH
- ----------------------------------------- CUMULATIVE NEXT MONTH
ACTUAL FORECAST VARIANCE (CASE TO DATE) FORECAST
------ -------- -------- -------------- --------
REVENUES
$0 1 Gross Sales $7,000
- ------------- ---------- ------------ --------------- ------------
$0 2 less: Sales Returns & Allowances
- ------------- ---------- ------------ --------------- ------------
$0 3 Net Sales $7,000 $0
- ------------- ---------- ------------ --------------- ------------
$0 4 less: Cost of Goods Sold (Schedule 'B') $68,271
- ------------- ---------- ------------ --------------- ------------
$0 5 Gross Profit ($61,271) $0
- ------------- ---------- ------------ --------------- ------------
$0 6 Interest $92
- ------------- ---------- ------------ --------------- ------------
7 Other Income:
$0 8 Miscellaneous $4,340
- ------------- ---------- ------------ ---------------------------------------------- --------------- ------------
$0 9 Insurance Settlement $130,000
- ------------- ---------- ------------ ---------------------------------------------- --------------- ------------
$0 $0 $0 10 TOTAL REVENUES $73,161 $0
- ------------- ---------- ------------ --------------- ------------
EXPENSES
$0 11 Compensation to Owner(s)/Officer(s)
- ------------- ---------- ------------ --------------- ------------
$0 12 Salaries/Commissions
- ------------- ---------- ------------ --------------- ------------
$0 13 Management Fees
- ------------- ---------- ------------ --------------- ------------
$0 14 Depreciation
- ------------- ---------- ------------ --------------- ------------
$0 15 Taxes:
- ------------- ---------- ------------ --------------- ------------
$0 16 Employer Payroll Taxes
- ------------- ---------- ------------ --------------- ------------
$0 17 Real Property Taxes
- ------------- ---------- ------------ --------------- ------------
$0 18 Other Taxes $2,303
- ------------- ---------- ------------ --------------- ------------
$0 19 Other Selling
- ------------- ---------- ------------ --------------- ------------
$265 ($265) 20 Other Administrative $2,587
- ------------- ---------- ------------ --------------- ------------
$0 21 Write-off Investment Subs $112,618
- ------------- ---------- ------------ --------------- ------------
22 Other Expenses:
$0 23 Storage Rental $6,045
- ------------- ---------- ------------ ---------------------------------------------- --------------- ------------
$0 24 Accounting $1,510
- ------------- ---------- ------------ ---------------------------------------------- --------------- ------------
$0 25 Press Release $725
- ------------- ---------- ------------ ---------------------------------------------- --------------- ------------
$0 26 Telecommunications $5,015
- ------------- ---------- ------------ ---------------------------------------------- --------------- ------------
$394 ($394) 27 SEC Reporting $11,026
- ------------- ---------- ------------ ---------------------------------------------- -------------- ------------
$0 28 Litigation Costs $1,193
- ------------- ---------- ------------ ---------------------------------------------- -------------- ------------
$0 29 Write-off of Accounts Receivable $55,156
- ------------- ---------- ------------ ---------------------------------------------- -------------- ------------
$0 30 Writedown of Notes Receivable $2,000,000
- ------------- ---------- ------------ ---------------------------------------------- -------------- ------------
$659 $0 ($659) 31 TOTAL EXPENSES $2,198,178 $0
- ------------- ---------- ------------ --------------- ------------
($659) $0 ($659) 32 SUBTOTAL ($2,125,017) $0
- ------------- ---------- ------------ --------------- ------------
REORGANIZATION ITEMS
$12,904 ($12,904) 33 Professional Fees $421,640
- ------------- ---------- ------------ --------------- ------------
$0 34 Provisions for Rejected Executory Contracts
- ------------- ---------- ------------ --------------- ------------
Interest Earned on Accumulated Cash
$0 35 Resulting from Chp 11 Case
- ------------- ---------- ------------ --------------- ------------
$0 36 Gain or (Loss) from Sale of Equipment $4,592
- ------------- ---------- ------------ --------------- ------------
$0 37 US Trustee Fees $3,250
- ------------- ---------- ------------ ---------------------------------------------- --------------- ------------
$0 38 Loss from Sale of Investments $220,000
- ------------- ---------- ------------ ---------------------------------------------- --------------- ------------
$12,904 $0 ($12,904) 39 TOTAL REORGANIZATION ITEMS $640,298 $0
- ------------- ---------- ------------ --------------- ------------
($13,563) $0 ($13,563) 40 NET PROFIT (LOSS) BEFORE FEDERAL & STATE TAXES ($2,765,315) $0
- ------------- ---------- ------------ --------------- ------------
$0 41 Federal & State Income Taxes
- ------------- ---------- ------------ --------------- ------------
($13,563) $0 ($13,563) 42 NET PROFIT (LOSS) ($2,765,315) $0
============= ========== ============ =============== ============
EXPLANATION OF VARIANCE TO STATEMENT OF OPERATIONS
(FOR VARIANCES GREATER THAN +/- 10% ONLY)
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(1)
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Effective 1/1/95
SUMMARY OF CASH RECEIPTS AND DISBURSEMENTS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED February, 2000
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CASH BALANCE BEGINNING OF MONTH $122,522
----------------------
CASH RECEIPTS (1) $0
----------------------
CASH DISBURSEMENTS (1) $659
----------------------
EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS ($659)
----------------------
CASH BALANCE END OF MONTH $121,863
======================
RECAPITULATION OF FUNDS HELD AT END OF MONTH
ACCOUNT 1 ACCOUNT 2 ACCOUNT 3
--------- --------- ---------
BANK Wells Fargo Mallesons Stephen Murray & Murray
--------------------- --------------------- ----------------------
ACCOUNT TYPE Checking Trust Account Trust Account
--------------------- --------------------- ----------------------
ACCOUNT NO. 0114-458243
--------------------- --------------------- ----------------------
ACCOUNT PURPOSE General Litigation Trust Deposit Trust
--------------------- --------------------- ----------------------
BALANCE, END OF MONTH $70,690 $26,173 $25,000
--------------------- --------------------- ----------------------
TOTAL FUNDS ON HAND FOR ALL ACCOUNTS $121,863
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(1) Excluding bank transfers between your accounts.