1
Exhibit 99q
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.
/s/ Richard A. Cascarilla
--------------------------------------
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 & Wages $
-------------
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
#97-30265
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
RUN DATE: 09/14/98 POWERTEL USA, INC. PAGE: 1
SYS DATE: 08/31/98 TRANSACTION JOURNAL TIME: 12:03 PM
SOURCE POSTING CREDIT
JOURNAL DATE ACCOUNT NO BATCH TOTAL JOURNAL COMMENT
CD-0001 08/31/98 1020-000-00 11,642.39 DISBURSEMENTS
CHECK NO DATE COMMENT DEBIT ACCT TRANS AMOUNT
- ---------- -------- ------------------------ ------------------ -------------
0001162 08/03/98 CASEY & BOOG 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 & BOOG 6500-000-00 25.68
0001168 08/14/98 FIRST AMERICA 2110-001-00 474.30
0001168 08/14/98 FIRST AMERICA 2110-002-00 810.00
0001168 08/14/98 FIRST AMERICA 2110-005-00 474.30
----------
CHECK 0001168 TOTALS: 1,758.60
0001169 08/14/98 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 08/19/98 CORPORATE STOCK TRANSFER 7900-000-00 213.96
0001175 08/18/98 CASEY & BOOG 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 $ 0.00 $ 0.00
-------------- ---------------
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:
Purchases 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 $ $
-------------- ---------------
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 come 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.
Payment Periodic Date of Post Petitions Payments
Period Payment Last Made Missed
Creditor Name and Address (mo/wk) Amount Payment No. Amount No. Amount
- -------------------------------------------------------------------------------------------
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: $ 0.00
---------
Date Paid Amount Paid Due But Not Paid Accrued But 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
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
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
Total Total Quarterly
Disbursement Fees Due But
Quarter Ending During Quarter Quarterly Fee Amount Paid Date Paid 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 18th day of September , 1997.
By: /s/ Richard A. Cascarilla
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