1
Exhibit 99r
POWERTEL USA, INC.
97-30265
CHAPTER 11
MONTHLY OPERATING REPORT
SEPTEMBER 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
SEPTEMBER 30, 1998
Assets
Current Assets:
Cash $ 5,555.18
---------------
Accounts Receivable $
---------------
Allowance for Doubtful
Accounts $
---------------
Accounts Receivable (Net) $
---------------
Inventory $
---------------
Prepaid Expenses $
---------------
Total Current Assets $ 5,555.18
---------------
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) $ 388,747.00
---------------
Total Assets: $ 6,0942,302.18
---------------
3
LIABILITIES
SEPTEMBER 30, 1998
Postpetition Liabilities (Accrued and Unpaid)
Salaries & Wages $
--------------
Payroll Taxes $ 460.60
--------------
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 LOAN SHAREHOLDER $ 4,000.00
--------------
DIEGOTEL, INC. STOCK-BOOK VALUE $ 7,500.00
--------------
Total Postpetition Liabilities $ 11,960.60
--------------
Repetition 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 $ (48,754.42)
--------------
Total Shareholder's Equity $ 6,082,341.58
--------------
Total Liabilities & Equity $ 6,094,302.18
--------------
4
RECAPITULATION
SEPTEMBER, 1998
Balance from Prior Month
General Account $ 1,240.25
----------
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 $ 5,555.18
----------
General Account $
----------
Tax Account $
----------
5
POWERTEL USA, INC.
EAST LANSING, MICHIGAN
BANK ACCOUNT SUMMARIES
#97-30265
SEPTEMBER, 1998
FIRST OF
DATE DESCRIPTION AMERICA
- -------- ---------------------------- ----------
09.01.98 BEGINNING BALANCE $ 1,240.25
----------
09.08.98 SHAREHOLDER LOANS $ 4,000.00
09.25.98 TRANSFER FROM DIEGOTEL, INC. $ 7,500.00
----------
09.30.98 TOTAL DEPOSITS $11,500.00
09.30.98 CHECKS WRITTEN PER ATTACHED $ 7,185.07
----------
09.30.98 BALANCE $ 5,555.18
==========
6
RUN DATE: 10/09/98 POWERTEL USA, INC. PAGE: 1
SYS DATE: 09/30/98 TRANSACTION JOURNAL TIME: 09:30 AM
SOURCE POSTING CREDIT
JOURNAL DATE ACCOUNT NO BATCH TOTAL JOURNAL COMMENT
CD-0001 09/30/98 1020-000-00 7,185.07 DISBURSEMENTS
CHECK NO DATE COMMENT DEBIT ACCT TRANS AMOUNT
- ---------- -------- ------------------------ ----------- ------------
0001184 09/01/98 CASEY & BOOG 6600-000-00 95.00
0001185 09/01/98 CABO 6900-000-00 500.00
0001186 09/04/98 MIKE KASSOUFF 6500-000-00 199.23
0001187 09/04/98 JEFFREY ANTISDEL 6000-000-00 42.20
0001188 09/04/98 CASEY & BOOG 6600-000-00 167.00
0001189 09/10/98 CASEY & BOOG 6600-000-00 167.00
0001190 09/11/98 CASEY & BOOG 6500-000-00 29.79
0001191 09/15/98 FIRST OF AMERICA 2110-001-00 474.30
0001191 09/15/98 FIRST OF AMERICA 2110-002-00 810.00
0001191 09/15/98 FIRST OF AMERICA 2110-005-00 474.30
---------
CHECK 0001191 TOTALS: 1,758.60
0001192 09/19/98 KNUTSEN TRAVEL REPORT 7900-000-00 93.00
0001193 09/19/98 CORPORATE SERVICES 7800-000-00 263.76
0001194 09/19/98 CASEY AND BOOG 6600-000-00 95.00
0001195 09/19/98 KNUTSEN TRAVEL REPORT 7900-000-00 133.00
0001196 09/19/98 CASEY & BOOG 6600-000-00 167.00
0001197 09/24/98 ROBERT LINDBERG CPA 5050-000-00 1,041.90
0001198 09/24/98 PAUL GOEBEL GROUP 6110-000-00 530.02
0001199 09/24/98 UPS 6000-000-00 24.00
0001200 09/25/98 ENDS CHRISTIE 6600-000-00 500.00
0001201 09/25/98 CASEY & BOOG 6600-000-00 167.00
0001202 09/25/98 CORPORATE STOCK TRANSFER 7900-000-00 51.94
0001203 09/29/98 FLEET CREDIT CARD 7900-000-00 1,159.63
--------
JOURNAL CD-0001 TOTALS: 7,185.07
--------
SOURCE CD TOTALS: 7,185.07
--------
REPORT TOTALS: 7,185.07
--------
7
INCOME STATEMENT
(Accrual Basis)
OCTOBER 1, 1997 TO SEPTEMBER 30, 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 $ $ 73,200.00
------------ -------------
Employee Benefits $ 530.02 $ 530.02
------------ -------------
Shipping & Freight $ 66.20 $ 1,638.02
------------ -------------
Rent $ 500.00 $ 500.00
------------ -------------
Secured Debt Payments $ $
------------ -------------
Outside Services $ 1,358.00 $ 4,397.93
------------ -------------
Telephone $ 263.76 $ 1,169.65
------------ -------------
Repairs & Maintenance $ $
------------ -------------
Miscellaneous Office Expense $ 229.02 $ 2,314.16
------------ -------------
Advertising $ $
------------ -------------
Travel & Entertainment $ 1,437.57 $ 21,218.56
------------ -------------
Professional Fees $ 1,041.90 $ 53.169.67
------------ -------------
Court Costs $ $ 19,372.00
------------ -------------
Insurance: Liability $ $
------------ -------------
Property $ $
------------ -------------
Vehicle $ $
------------ -------------
Worker's Compensation $ $
------------ -------------
Other - Bond $ $ (920.00)
------------ -------------
Taxes: Payroll $ $ 6,956.96
------------ -------------
Sales $ $
------------ -------------
Income $ $
------------ -------------
Real Property $ $
------------ -------------
Personal Property $ $
------------ -------------
Total Operating Expenses $ 5,426.47 $ 183,546.97
------------ -------------
Total Profit (Loss) from Operations $ (5,426.47) $ (183,546.97)
------------ -------------
Other Income (Expense) $ $
------------ -------------
Gain (Loss) on Sale of Assets $ $
------------ -------------
Interest Expense $ $
------------ -------------
Interest Income $ $
------------ -------------
Dividend Income $ $ 16.34
------------ -------------
Herth Printing Income (loss) $ 1,118.00 $ (29,349.00)
------------ -------------
Total $ 1,118.00 $ (29,332.66)
------------ -------------
Total Profit (Loss) for Month $ (4,308.47) $ (212,879.63)
------------ -------------
8
CASH FLOW STATEMENT
SEPTEMBER, 1998
Projected
Current For current
Month Month
------------ ------------
Receipts:
Sales (Cash Only) $ $
------------ ------------
Collections of Accounts Receivable $ $
------------ ------------
Other Income - DIEGTOTEL INC. TRANSFER $7,500 $ 11,500.00 $
------------ ------------
LOAN - SHAREHOLDERS $4,000
Total Receipts $ 11,500.00 $
------------ ------------
Disbursements:
Purchases and Inventory $ $
------------ ------------
Salaries and Wages $ $
------------ ------------
Employee Benefits $ 530.02 $
------------ ------------
Shipping & Freight $ 66.20 $
------------ ------------
Rent $ 500.00 $
------------ ------------
Secured Debt Payments $ $
------------ ------------
Outside Services $ 1,358.00 $
------------ ------------
Telephone $ 263.76 $
------------ ------------
Repairs & Maintenance $ $
------------ ------------
Miscellaneous Office Expense $ 229.02 $
------------ ------------
Advertising $ $
------------ ------------
Travel & Entertainment $ 1,437.57 $
------------ ------------
Professional Fees $ 1,041.90 $
------------ ------------
Court Costs $ $
------------ ------------
Insurance: Liability $ $
------------ ------------
Property $ $
------------ ------------
Vehicle $ $
------------ ------------
Worker's Compensation $ $
------------ ------------
Other $ $
------------ ------------
Taxes: Payroll $ 1,758.60 $
------------ ------------
Sales $ $
------------ ------------
Income $ $
------------ ------------
Real Property $ $
------------ ------------
Personal Property $ $
------------ ------------
Total Disbursements $ 7,185.07 $
------------ ------------
Cash Flow $ 4,314.93 $
------------ ------------
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.
- ---------------------------------------------------------------------------------------------------------
Creditor Name and Address Payment Period Periodic Date of Post Petition Payments
(mo/wk) Payment Last Made Missed
Amount Payment No. Amount No. Amount
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
10
MONTHLY QUESTIONNAIRE
Page 2
III. Tax Liability
Gross Payroll Expense for Report Month: $0.00
-----
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
- -----------------------------------------------------------------------------------------------------------
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
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
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 18 day of September, 1998.
By: /s/ Richard Cascarilla