Income Statement
INVESTMENT INCOME:
Interest income $ 8,300
Commitment fee 6,667
-----------------
TOTAL INVESTMENT INCOME 14,967
-----------------
EXPENSES:
Interest expense -
Amortization expense 21,663 (1)
General and administrative 4,867
-----------------
TOTAL EXPENSES 26,530
-----------------
NET INVESTMENT INCOME (11,563)
UNREALIZED APPRECIATION (DEPRECIATION)
OF LOAN VALUE -
-----------------
NET INCOME (LOSS) $ (11,563)
=================
(1) Monthly amortization of capitalized Debt Issuance and Placement Fee expense
over the life of the offering.
Balance Sheet
August 31, 2002
ASSETS:
Cash $ 49,928
Loans receivable, at fair value 4,527,209
Investment in Subsidiary 540,936 (1)
Due from Parent 1,345,000 (2)
Debt issuance costs, net 1,361,636 (3)
Prepaid Expenses 22,925
----------------------
TOTAL ASSETS $ 7,847,634
======================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 87,681 (4)
Accrued expenses 123,522
Subordinated bonds 7,207,056
TOTAL LIABILITIES 7,418,259
COMMITMENTS AND CONTINGENCIES 0
STOCKHOLDERS' EQUITY:
Common stock, $1 par value, 1,000 shares authorized,
issued and outstanding 1,000
Additional paid-in capital 1,557,535
Accumulated deficit (1,129,160)(5)
TOTAL STOCKHOLDERS' EQUITY 429,375
----------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 7,847,634
======================
(1) IBF VI Secured Lending Corporation has a 100% ownership interest in IBF VI
Asset Securitization Corporation, a bankruptcy remote nonrecourse special
purpose vehicle.
(2) Pre-petition intercompany receivable
(3) Capitalized costs associated with issuance of Investor notes
(4) Accounts Payable (Trade Payables) are broken down as follows:
Pre-petition $ 70,807 ( of which $ 69,756 is in dispute)
Post-petition 16,874
(5) Accumulated deficit includes extraordinary costs (SEC defense related costs)
of $575,000.
Statement of Cash Flows
August 2002
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (11,563)(1)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Amortization 21,663 (2)
Interest on subordinated bonds -
Unrealized (appreciation) depreciation of loan value -
Changes in operating assets and liabilities:
Loans Receivable (809,602)
Prepaid expense (7,899)
Accounts payable (28,908)
Accrued expenses (6,667)
-----------------
CASH FLOW PROVIDED BY OPERATING ACTIVITIES (842,976)
-----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Collection on mortgage loans -
Advances to affiliate -
Purchase of loan receivable -
-----------------
CASH FLOW USED IN INVESTING ACTIVITIES -
-----------------
CASH FLOWS FROM FINANCING ACTIVITIES
Debt issuance costs reclassified 24,795
Reimbursement for expenses -
Payments to affiliate
Repayments of subordinated bonds -
Proceeds from issuance of subordinated bonds -
CASH FLOW USED IN FINANCING ACTIVITIES 24,795
-----------------
NET INCREASE (DECREASE) IN CASH (818,181)
CASH, Beginning 868,109
-----------------
CASH, Ending $ 49,928
=================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the periods for:
Interest $ -
=================
Taxes $ -
=================
Monthly Disbursements $ 966,878
=================
(1) See Income statement, net income
(2) Amortization of Debt issuance and Placement fee. See Income statement (2)
Income Statement
September 2002
INVESTMENT INCOME:
Interest income $ 21,101
Commitment fee 5,000
-----------------
TOTAL INVESTMENT INCOME 26,101
-----------------
EXPENSES:
Amortization expense 21,276 (1)
General and administrative 12,571
Management fee 36,770
-----------------
TOTAL EXPENSES 70,617
-----------------
NET INVESTMENT INCOME (44,516)
UNREALIZED APPRECIATION (DEPRECIATION)
OF LOAN VALUE -
-----------------
NET INCOME (LOSS) $ (44,516)
=================
(1) Monthly amortization of capitalized Debt Issuance and Placement Fee expense
over the life of the offering.
Balance Sheet
September 30, 2002
ASSETS:
Cash $ 403,102
Loans receivable, at fair value 4,156,999
Investment in Subsidiary 540,936 (1)
Due from Parent 1,345,000 (2)
Debt issuance costs, net 1,340,360 (3)
Prepaid Expenses 20,015
----------------------
TOTAL ASSETS $ 7,806,412
======================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 95,975 (4)
Accrued expenses 118,522
Subordinated bonds 7,207,056
TOTAL LIABILITIES 7,421,553
COMMITMENTS AND CONTINGENCIES 0
STOCKHOLDERS' EQUITY:
Common stock, $1 par value, 1,000 shares authorized,
issued and outstanding 1,000
Additional paid-in capital 1,557,535
Accumulated deficit (1,173,676)(5)
TOTAL STOCKHOLDERS' EQUITY 384,859
----------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 7,806,412
======================
(1) IBF VI Secured Lending Corporation has a 100% ownership interest in IBF VI
Asset Securitization Corporation, a bankruptcy remote nonrecourse special
purpose vehicle.
(2) Pre-petition intercompany receivable
(3) Capitalized costs associated with issuance of Investor notes
(4) Accounts Payable (Trade Payables) are broken down as follows:
Pre-petition $ 70,807 ( of which $ 69,756 is in dispute)
Post-petition 25,168
(5) Accumulated deficit includes extraordinary costs (SEC defense related costs)
of $575,000.
Statement of Cash Flows
September 2002
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (44,516)(1)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Amortization 21,276 (2)
Interest on subordinated bonds -
Unrealized (appreciation) depreciation of loan value -
Changes in operating assets and liabilities:
Loans Receivable 370,210
Prepaid expense 2,910
Accounts payable 8,294
Accrued expenses (5,000)
-----------------
CASH FLOW PROVIDED BY OPERATING ACTIVITIES 353,174
-----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Collection on mortgage loans -
Advances to affiliate -
Purchase of loan receivable -
-----------------
CASH FLOW USED IN INVESTING ACTIVITIES -
-----------------
CASH FLOWS FROM FINANCING ACTIVITIES
Debt issuance costs reclassified
Reimbursement for expenses -
Payments to affiliate
Repayments of subordinated bonds -
Proceeds from issuance of subordinated bonds -
CASH FLOW USED IN FINANCING ACTIVITIES -
-----------------
NET INCREASE (DECREASE) IN CASH 353,174
CASH, Beginning 49,928
-----------------
CASH, Ending $ 403,102
=================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the periods for:
Interest $ -
=================
=================
Taxes $ -
=================
Monthly Disbursements $ 192,648
=================
(1) See Income statement, net income
(2) Amortization of Debt issuance and Placement fee. See Income statement (2)