1
EXHIBIT 99j
POWERTEL USA, INC.
97-30265
CHAPTER 11
MONTHLY OPERATING REPORT
JANUARY 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.
/s/ Richard Cascarilla
--------------------------------
RICHARD A. CASCARILLA, PRESIDENT
DEBTOR IN POSSESSION
2
BALANCE SHEET
JANUARY 31, 1998
Assets
Current Assets:
Cash $ 78,051.73
------------------
Accounts Receivable $
------------------
Allowance for Doubtful
Accounts $
------------------
Accounts Receivable (Net) $
------------------
Inventory $
------------------
Prepaid Expenses $
------------------
Total Current Assets $ 78,051.73
------------------
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
------------------
Total Assets: $ 5,778,051.73
------------------
3
LIABILITIES
JANUARY 31, 1998
Postpetition Liabilities (Accrued and Unpaid)
Salaries & Wages $
-----------------------
Payroll Taxes $ 2,166.30
-----------------------
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 $ 2,166.30
-----------------------
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 $ 5,700,000.00
-----------------------
Retained Earnings $ 75,885.43
-----------------------
Total Shareholder's Equity $ 5,775.885.43
-----------------------
Total Liabilities & Equity $ 5,778,051.73
-----------------------
4
RECAPITULATION
JANUARY 31, 1998
Balance from Prior Month
General Account $ 91,964.13
-----------
Bank FIRST OF AMERICA BANK, N.A. MICHIGAN
Branch OKEMOS, MICHIGAN
Account #62-3007936-7
General Account $
-----------
Bank
Branch
Account #
Tax Account $
-----------
Bank
Branch
Account #
Balance to Carry Forward to Next Month
General Account $ 78,051.73
-----------
General Account $
-----------
Tax Account $
-----------
5
POWERTEL USA, INC.
EAST LANSING, MICHIGAN
BANK ACCOUNT SUMMARIES
#97-30265
(PTELBANK.198)
JANUARY 31, 1998
FIRST OF
DATE DESCRIPTION AMERICA
- ------------------ --------------------------- ------------
01.01.98 BEGINNING BALANCE $ 91,964.13
------------
01.31.98 TOTAL DEPOSITS $ 0.00
------------
01.31.98 CHECKS WRITTEN PER ATTACHED $ 13,912.40
------------
01.31.98 TOTAL DISBURSEMENTS $ 13,912.40
------------
01.31.98 BALANCE $ 78,051.73
============
6
RUN DATE: 2/13/98 POWERTEL USA, INC. PAGE: I
SYS DATE: 01/31/98 TRANSACTION JOURNAL TIME: 09:15 AM
SOURCE POSTING CREDIT
JOURNAL DATE ACCOUNT NO BATCH TOTAL JOURNAL COMMENT
CD-0001 01/31/98 1020-000-00 13,912.40 DISBURSEMENTS
CHECK NO DATE COMMENT DEBIT ACCT TRANS AMOUNT
- ---------- -------- ------------------------ ----------- -------------------
0001040 01/04/98 U.P.S. 6000-000-00 11.00
0001049 01/04/98 CASEY & BOOG 6600-000-00 95.00
0001050 01/05/98 POSTMASTER EL 6500-000-00 80.00
0001051 01/12/98 MICHALE KASOUFF 7900-000-00 704.00
0001052 01/13/98 FLEET CREDIT CORP. 7900-000-00 398.86
0001053 01/14/98 STATE OF MICHIGAN 2110-003-00 2,700.00
0001054 01/14/98 FIRST OF AMERICA 2110-001-00 856.80
0001054 01/14/98 FIRST OF AMERICA 2110-002-00 1,652.00
0001054 01/14/98 FIRST OF AMERCIA 2110-005-00 856.80
---------
CHECK 0001054 TOTALS: 3,365.60
---------
0001055 01/16/98 CASEY & BOOG 6600-000-00 95.00
0001056 01/19/98 BARB FELDKAMP 6600-000-00 100.00
0001057 01/25/98 U.P.S. 6000-000-00 22.00
0001058 01/25/98 CORPORATE SERVICES 7800-000-00 54.04
0001059 01/25/98 KNUTSON TRAVEL PORT 7900-000-00 1,056.00
0001060 01/25/98 RICHARD A. CASCARILLA 8100-000-00 3,723.00
0001061 01/27/98 ROBERT LINDBERG CPA 5050-000-00 170.40
0001062 01/28/98 INTERNAL REVENUE SERVICE 2110-005-00 84.80
0001063 01/28/98 MESC 2110-005-00 256.50
0001064 01/28/98 NEV. EMP. SEC. DIV. 2110-005-00 5.00
0001065 01/28/98 H. LAWRENCE HERTH 8100-000-00 991.20
---------
JOURNAL CD-0001 TOTALS: 13,912.40
---------
SOURCE CD TOTALS: 13,912.40
---------
REPORT TOTALS: 13,912.40
=========
7
INCOME STATEMENT
(Accrual Basis)
OCTOBER 1, 1997 TO OCTOBER 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 $ 29,800.00
----------------- ------------------
Employee Benefits $ $
----------------- ------------------
Freight & Shipping $ 113.00 $ 1,105.32
----------------- ------------------
Rent $ $
----------------- ------------------
Secured Debt Payments $ $
----------------- ------------------
Outside Services $ 290.00 $ 1,809.93
----------------- ------------------
Telephone $ 54.04 $ 397.35
----------------- ------------------
Repairs & Maintenance $ $
----------------- ------------------
Miscellaneous Office Expense $ $ 1,437.78
----------------- ------------------
Advertising $ $
----------------- ------------------
Travel & Entertainment $ 2,158.86 $ 6,364.39
----------------- ------------------
Professional Fees $ 170.40 $ 28,557.15
----------------- ------------------
Court Costs $ $ 16,872.00
----------------- ------------------
Insurance: Liability $ $
----------------- ------------------
Property $ $
----------------- ------------------
Vehicle $ $
----------------- ------------------
Worker's Compensation $ $
----------------- ------------------
Other - Bond $ $ (920.00)
----------------- ------------------
Taxes: Payroll $ 577.50 $ 2,832.20
----------------- ------------------
Sales $ $
----------------- ------------------
Income $ $
----------------- ------------------
Real Property $ $
----------------- ------------------
Personal Property $ $
----------------- ------------------
Total Operating Expenses $ 9,563.80 $ 88,256.12
----------------- ------------------
Total Profit (Loss) from Operations $ (9,563.80) $ (88,256.12)
----------------- ------------------
Other Income (Expense) $ $
----------------- ------------------
Gain (Loss) on Sale of Assets $ $
----------------- ------------------
Interest Expense $ $
----------------- ------------------
Interest Income $ $
----------------- ------------------
Dividend Income $ $ 16.34
----------------- ------------------
Total $ $ (16.34)
----------------- ------------------
Total Profit (Loss) for Month $ (9,563.80) $ (88,239.78)
----------------- ------------------
8
CASH FLOW STATEMENT
JANUARY 31, 1998
Projected
Current For current
Month Month
----------------- -----------------
Receipts:
Sales (Cash Only) $ $
----------------- -----------------
Collections of Accounts Receivable $ $
----------------- -----------------
Other Income $ $
----------------- -----------------
Total Receipts $ $
----------------- -----------------
Disbursements:
Purchases and Inventory $ $
----------------- -----------------
Salaries and Wages $ 4,714.20 $
----------------- -----------------
Employee Benefits $ $
----------------- -----------------
Shipping & Freight $ 113.00 $
----------------- -----------------
Rent $ $
----------------- -----------------
Secured Debt Payments $ $
----------------- -----------------
Outside Services $ 290.00 $
----------------- -----------------
Telephone $ 54.04 $
----------------- -----------------
Repairs & Maintenance $ $
----------------- -----------------
Miscellaneous Office Expense $ $
----------------- -----------------
Advertising $ $
----------------- -----------------
Travel & Entertainment $ 2,158.86 $
----------------- -----------------
Professional Fees $ 170.40 $
----------------- -
Court Costs $ $
----------------- -----------------
Insurance: Liability $ $
----------------- -----------------
Property $ $
----------------- -----------------
Vehicle $ $
----------------- -----------------
Worker's Compensation $ $
----------------- -----------------
Other $ $
----------------- -----------------
Taxes: Payroll $ 6,411.90 $
----------------- -----------------
Sales $ $
----------------- -----------------
Income $ $
----------------- -----------------
Real Property $ $
----------------- -----------------
Personal Property $ $
----------------- -----------------
Total Disbursements $ 13,912.40 $
----------------- -----------------
Cash Flow $ (13,912.40) $
----------------- -----------------
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 Payable Accounts 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.
Creditor Name and Address Payment Periodic Date of Post Petition Payments
Period Payment Last Made Missed
(mo/wk) Amount Payment ------------------------------------
No. Amount No. Amount
10
MONTHLY QUESTIONNAIRE
Page 2
III. Tax Liability
Gross Payroll Expense for Report Month: $
----------
Gross Sales Subject to Sales Tax for Report Month $
----------
Date Paid Amount Paid Due But Not Paid Accrued But Not Due
--------- ----------- ---------------- -------------------
Federal Payroll & Withholding 1,808.20
State Payroll & Withholding 358.10
State Sales & Use
IV. Insurance Coverage
Policy
Amount of Expiration Policy Paid
Carrier/Agent 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
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
If the answer is yes, identify each person paid, the date and amount of
such payment(s) and the basis for each such payment.
11
MONTHLY QUESTIONNAIRE
Page 3
IV. 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 Total Quarterly Fee Amount Paid Date Paid Total Quarterly
Ending Disbursement 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 19th day of January, 1998.
By: /s/ Richard Cascarilla
----------------------