1
Exhibit 3
POWERTEL USA, INC.
97-30265
CHAPTER 11
MONTHLY OPERATING REPORT
AUGUST 1998
The Debtor in Possession is filing an incomplete Monthly Operating Report due to
the lack of complete records. The former officers of PowerTel USA, Inc. have not
cooperated with the Debtor by providing the necessary information. The Books and
Records are missing. Therefore, it is impossible for the Debtor to file a
complete Monthly Operating Report.
------------------------------------
RICHARD A. CASCARILLA, PRESIDENT
DEBTOR IN POSSESSION
2
BALANCE SHEET
AUGUST 31, 1998
Assets
Current Assets:
Cash $1,240.25
Accounts Receivable $____________
Allowance for Doubtful
Accounts $____________
Accounts Receivable (Net) $____________
Inventory $____________
Prepaid Expenses $____________
Total Current Assets $1,240.25
---------
Property and Equipment (Fair Market Value)
Real Property $____________
Machinery and Equipment $5,700,000.00
Furniture and Fixtures $____________
Office Equipment $____________
Leasehold Improvements $____________
Vehicles $____________
Other ____________ $____________
____________ $____________
Total. Property and Equipment $5,700,000.00
-------------
Investments:
Herth Printing and Business Supply
Stock (at Book Value) $3,876.29
---------
Total Assets: $6,088,869.25
-------------
3
Liabilities
-----------
AUGUST 31, 1998
Postpetition Liabilities (Accrued and Unpaid)
Salaries $____________
Payroll Taxes $2,219. 20
Sales Taxes $____________
Income Taxes $____________
Real Property Taxes $____________
Personal Property Taxes $____________
Accounts Payable $____________
Postpetition Real Property
Lease Arrearages $____________
Postpetition Equipment.
Lease Arrearages $____________
Accrued Professional Fees $____________
Other __________ $____________
__________ $____________
Total Postpetition Liabilities $2, 219. 20
-----------
Prepetition Liabilities
Priority Debt (Schedule A-1) $____________
Secured Debt (Schedule A-2) $____________
Unsecured Debt (Schedule A-3) $____________
Total Prepetition Liabilities $____________
Shareholder's Equity
Common Stock $____________
Paid-In Capital $6,131,096.00
Retained Earnings $(44,445.95)
Total Shareholder's Equity $6,086,650.05
-------------
Total Liabilities & Equity $6,088,869.25
-------------
4
Recapitulation
--------------
AUGUST, 1998
Balance from Prior Month
General Account $6,882.64
Bank FIRST OF AMERICA BANK, N.A. MICHIGAN
Branch OKEMOS, MICHIGAN
Account # 62-30079367
General Account
Bank
Branch
Account #
Tax Account
Bank
Branch
Account #
Balance to Carry Forward to Next Month
General Account $1,240.25
General Account $____________
Tax Account $____________
5
POWERTEL USA, INC.
EAST LANSING, MICHIGAN
BANK ACCOUNT SUMMARIES
097-30265
AUGUST, 1998
FIRST OF
DATE DESCRIPTION AMERICA
---- ----------- -------
08/01/98 BEGINNING BALANCE $ 6,882.64
08/19/98 HERTH PRINTING INC. DISTRIBUTION 6,000.00
08/31/98 TOTAL DEPOSITS 6,000.00
08/31/98 CHECKS WRITTEN PER ATTACHED 11,642.39
08/31/98 BALANCE $ 1,240.25
6
SOURCE POSTING CREDIT
JOURNAL DATE ACCOUNT NO BATCH TOTAL JOURNAL COMMENT
CD-0001 08/31/98 1020-000-00 DISBURSEMENTS
CHECK NO DATE COMMENT DEBIT ACCT TRANS AMOUNT
- -------- ---- ------- ---------- ------------
0001162 08/03/98 CASEY & BOUG PLC 6600-000-00 95.00
0001163 08/03/98 UPS 6000-000-00 78.25
0001164 08/04/98 KNUTSEN TRAVEL PORT 7900-000-00 550.00
0001165 08/04/98 AMERITECH 7800-000-00 18.82
0001166 08/06/98 STATE OF NEVADA 7600-000-00 389.96
0001167 08/07/98 CASEY & BOGG PLC 6500-000-00 25.68
0001168 08/14/98 FIRST OF AMERICA 2110-001-00 474.30
001168 08/14/98 FIRST OF AMERICA 2110-002-00 810.00
0001168 08/14/98 FIRST OF AMERICA 2110-005-00 474.30
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CHECKING 001168 TOTALS 1,758.60
0001169 09/14/98 UPS 6000-000-00 12.00
0001170 08/14/98 FED EX 6000-000-00 44.75
0001171 08/18/98 MICHAEL KASSOUFF 7900-000-00 327.00
0001172 08/17/98 LAURIE WEBB &
ASSOCIATES 6200-000-00 442.50
0001173 08/18/98 KNUTSEN TRAVEL PORT 7900-000-00 1,167.00
0001174 08/18/98 CORPORATE STOCK
TRANSFER 7900-000-00 213.96
0001175 08/18/98 CASEY & BOUG 6600-000-00 90.00
0001176 08/18/98 US TRUSTEE 6200-000-00 250.00
0001177 08/18/98 AT&T 7800-000-00 4.91
0001178 08/27/98 H. LAWRENCE HERTH 8100-000-00 991.20
0001179 08/27/98 RICHARD A CASCARILLA 8100-000-00 3,723.00
0001180 08/28/98 AMERITECH 7800-000-00 18.82
0001181 08/28/98 UPS 6000-000-00 12.00
0001182 08/28/98 FLEET 7900-000-00 1,138.15
0001183 08/31/98 FIRST UNION 7900-000-00 290.79
------
JOURNAL CD-0001 TOTALS: 11,642.39
SOURCE CD TOTALS: 11,642.39
REPORT TOTALS: 11,642.39
7
INCOME STATEMENT
----------------
(Accrual Basis)
OCTOBER 1, 1997 TO AUGUST 31, 1998
CURRENT YEAR TO
MONTH DATE
Income $__________ $__________
Cost of Goods Sold $__________ $__________
Beginning Inventory $__________ $__________
Inventory Purchases $__________ $__________
Ending Inventory $__________ $__________
Total Costs of Goods Sold $__________ $__________
Operating Expenses
Salaries and Wages $6,200.00 $73,200.00
Employee Benefits $__________ $__________
Shipping & Freight $147.00 $1,571.82
Rent $__________ $__________
Secured Debt Payments $__________ $__________
Outside Services $185.00 $3,039.93
Telephone $42.55 $905.89
Repairs & maintenance $__________ $__________
Miscellaneous Office Expense $25.68 $2,085.14
Advertising $__________ $__________
Travel & Entertainment $3,686.90 $19,780.99
Professional Fees $692.50 $52,127.77
Court Costs $__________ $19,372.00
Insurance: Liability $__________ $__________
Property $__________ $__________
Vehicle $__________ $__________
Worker's Compensation $__________ $__________
Other: Bond $__________ $ (920.00)
Taxes: Payroll $893.06 $6,956.96
Sales $__________ $__________
Income $__________ $__________
Real Property $__________ $__________
Personal Property $__________ $__________
Total Operating Expenses $11,872.69 $178,120.50
Total Profit (Loss) from Operations $(11,872.69) $ (178,120.50)
Other Income (Expense) $__________ $__________
Gain (Loss) on Sale of Assets $__________ $__________
Interest Expense $__________ $__________
Interest Income $__________ $__________
Dividend Income $__________ $16.34
Herth Printing Income (loss) $12,044.00 $(30,467.00)
Total $12,044.00 $(30,450.66)
Total Profit (Loss) for Month $171.31 $ (208,571.16)
8
CASH FLOW STATEMENT
-------------------
AUGUST, 1998
PROJECTED
CURRENT FOR CURRENT
MONTH MONTH
Receipts:
Sales (Cash only) $__________ $__________
Collections of Accounts Receivable $__________ $__________
Other Income - Herth Printing Dividend $6,000.00 $__________
Total Receipts $6,000.00 $__________
Disbursements:
Purchase and Inventory $__________ $__________
Salaries and Wages $4,714.20 $__________
Employee Benefits $__________ $__________
Shipping & Freight $147.00 $__________
Rent $__________ $__________
Secured Debt Payments $__________ $__________
Outside Services $185.00 $__________
Telephone $ 42.55 $__________
Repairs & Maintenance $__________ $__________
Miscellaneous Office Expense $25.68 $__________
Advertising $__________ $__________
Travel & Entertainment $3,686.90 $__________
Professional Fees $692.50 $__________
Court Costs $__________ $__________
Insurance: Liability $__________ $__________
Property $__________ $__________
Vehicle $__________ $__________
Worker's Compensation $__________ $__________
Other: Bond $__________ $__________
Taxes: Payroll $2,148.56 $__________
Sales $__________ $__________
Income $__________ $__________
Real Property $__________ $__________
Personal Property $__________ $__________
Total Disbursements $11,642.39 $__________
Cash Flow $(5,642.39) $__________
9
Monthly Questionnaire
I. Accounts Payable and Receivable Aging:
Attach an Accounts Payable and Receivable Aging Schedule, identifying in
chronological (or reverse chronological) order every debt which came due after
the commencement of the bankruptcy case but has not been paid, and specifying
the creditor by name and address, the nature of the debt (e.g., rent,
advertising, wages, etc.), the amount owed and the date on which the obligation
came due. Provide summary information below for both accounts payable and
accounts receivable:
Accounts Accounts
Payable Receivable
Less Than 31 Days Past Due
31 to 60 Days Past Due
61 to 90 Days Past Due
91 to 120 Days Past Due
Over 120 Days Past Due
II. Payments to Secured Creditors and Lessors:
Identify every secured Creditor and lessor by name and address, and provide the
requested information. Where there is a postpetition stipulation or court order
governing the creditor's treatment, respond on the basis of that stipulation or
order; otherwise, respond on the basis of the prepetition contract or lease.
Post Petition Payments
Made Missed
Creditor Name and Address Payment Period Periodic Date of No. Amount No. Amount
(mo/wk) Payment Last
Amount Payment
10
Monthly Questionnaire
Page 2
III. Tax Liability
Gross Payroll Expense for Report Month: $6,200.00
Gross Sales Subject to Sales Tax for Report Month: $-0-
POSTPETITION TAXES
Date Paid AMOUNT PAID Due But Accrued But
NOT PAID - NOT DUE
Federal Payroll & Withholding 1,758.60
STATE PAYROLL & WITHHOLDING 460.60
STATE SALES & USE
IV. Insurance Coverage
CARRIER/AGENT AMOUNT OF POLICY EXPIRATION POLICY PAID
NAME COVERAGE DATE THROUGH DATE
Worker's Compensation
Liability
Fire & Extended Coverage
Property
Theft
Vehicle
Life (Beneficiary):
Other (specify):
V. Postpetition Payments
A. Has the Debtor made any payments outside of the ordinary
course of business to any officers, shareholders, directors,
other principals or insider-employees or to professionals
without specific authorization under a Bankruptcy Court order?
No
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If the answer is yes, identify each person paid, the date and
amount of such payment(s) and the basis for each such payment.
B. Has the Debtor, following the commencement of the
bankruptcy case, made any payments on account of prepetition
unsecured debts, except as specifically authorized by the
Bankruptcy Court? No
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11
Monthly Questionnaire
Page 3
If the answer is yes, identify each person paid, the date and
amount of such payment(s) and the basis for each such payment.
VI. Narrative
Provide a brief narrative report of any significant events
outside of the ordinary course of business which occurred
during the Report Month:
VII. U.S. Trustee Fees
Quarter Ending Total Quarterly Fee Amount Paid Date Paid Total Quarterly
Disbursements Fees Due But
During Quarter Not Paid
I declare under penalty of perjury that I have reviewed the income
statement, cash flow statement, projections, balance sheet and monthly
questionnaire attached hereto and, after making reasonable inquiry, believe that
these documents are accurate and correct.
Dated this ___18___ day of __September____, 1997.
By:_______________/S/ _____________________