EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
In re: Quad Systems Corporation Case No. 00-35667
------------------------ Reporting Period: 12/19/00 to 1/31/01
Debtor
INITIAL MONTHLY OPERATING REPORT
File report and attachments with Court and submit copy to United
States Trustee within 15 days after order for relief
Certificates of insurance must name United States Trustee as party to be
notified in the event of policy cancellation.
Bank accounts and checks must bear the name of the debtor, the case number, and
the designation "Debtor in Possession".
Examples of acceptable evidence of Debtor in Possession Bank accounts include
voided checks, copy of bank deposit agreement/certificate of authority,
signature card, and/or corporate checking resolution.
- --------------------------------------------------------------------------------------------------------------------
REQUIRED DOCUMENT Document Attached Explanation Attached
- --------------------------------------------------------------------------------------------------------------------
12-Month Cash Flow Projection (Form IR-1) X
- --------------------------------------------------------------------------------------------------------------------
Certificates of Insurance X
- --------------------------------------------------------------------------------------------------------------------
Workers Compensation X
- --------------------------------------------------------------------------------------------------------------------
Property X
- --------------------------------------------------------------------------------------------------------------------
General Liability X
- --------------------------------------------------------------------------------------------------------------------
Vehicle X
- --------------------------------------------------------------------------------------------------------------------
Other: X
- --------------------------------------------------------------------------------------------------------------------
Evidence of Debtor in Possession Bank Accounts
- --------------------------------------------------------------------------------------------------------------------
Lockbox Account (under terms of Line of Credit) X X
- --------------------------------------------------------------------------------------------------------------------
General Operating Account X X
- --------------------------------------------------------------------------------------------------------------------
Payroll X X
- --------------------------------------------------------------------------------------------------------------------
Canadian Payroll (in Canadian$) X X
- --------------------------------------------------------------------------------------------------------------------
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and
the documents attached are true and correct to the best of my knowledge and
belief.
- -------------------------------------- ----------------------------------
Signature of Debtor Date
- -------------------------------------- ----------------------------------
Signature of Joint Debtor Date
/s/ Anthony R. Drury March 9, 2001
- -------------------------------------- ----------------------------------
Signature of Authorized Individual* Date
Anthony R. Drury Sr. Vice President, Finance
- -------------------------------------- ----------------------------------
Printed Name of Authorized Individual Title of Authorized Individual
*Authorized individual must be an officer, director or shareholder if debtor is
a corporation; a partner if debtor is a partnership; a manager or member if
debtor is a limited liability company.
FORM 1R
(9/99)
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
Quad Systems Cash Flow Week Week Week Week Week Week Week Week Week 5 weeks
IN THOUSANDS Ending Ending Ending Ending Ending Ending Ending Ending Ending Ending
ACTUAL ACTUAL ACTUAL ACTUAL FCST FCST FCST FCST FCST FCST
7-Jan 14-Jan 21-Jan 28-Jan 4-Feb 11-Feb 18-Feb 25-Feb 4-Mar 4-Mar
Revenue
Sales 422 185 1,154 413 375 1,404 1,109 773 1,011 4,672
- --------------------------------------------------------------------------------------------------------------------------- --------
TOTAL COMPANY SALES 422 185 1,154 413 375 1,404 1,109 773 1,011 4,672
- --------------------------------------------------------------------------------------------------------------------------- --------
Cost Of Sales
Materials 8 55 289 212 347 615 354 427 368 2,111
Labor - direct 72 27 87 85 82 81 248
- --------------------------------------------------------------------------------------------------------------------------- --------
Total Cost Of Sales 80 82 375 212 432 615 436 427 449 2,359
Gross Profit 341 103 779 201 (57) 789 673 346 562 2,313
- --------------------------------------------------------------------------------------------------------------------------- --------
81% 56% 67% 49% -15% 56% 61% 45% 56% 50%
Occupancy Expenses
Rents 69 70 70
Repairs & Maintenance 3 2 1 2 1 2 8
Utilities 2 25 19 46 12 1 21 99
- --------------------------------------------------------------------------------------------------------------------------- --------
Total Occupancy Expense 2 28 69 21 47 84 2 23 177
- --------------------------------------------------------------------------------------------------------------------------- --------
No. of Employees 195 195 171 171 170 141 141 134 134 134
General & Administrative Exp.
Salaries 170 67 212 3 197 7 198 15 182 599
Severance 15 17 17
Fringe Benefits/Payroll Taxes 15 57 57 0 136 4 40 100 280
Advertising 1 2 5 2 2 12
Bank Charges 6 1 1 1 3
Payroll Services 0 0 1 1 1 1 1 3
Mirae Living Expenses
Dues and Subs
Freight
Insurance (business) 33 41 28 28 28 33 158
Maintenance (equipment) 2 1 1 1 1 6
Travel & Meals 35 1 15 37 20 18 18 18 17 91
Occupancy Expense 11 0 3 2 11 2 3 21
Office Supplies, Postage 0 0 0 0 3 3 3 3 3 15
Professional Services 0 5 5 5 5 5 25
R&D Materials 2 5 3 1 2 13
Temp Help
Test Lab-Material 0 0
Trade shows 23 19 12 19 31
Symix software Licence & m'tce 13 13
Miscellaneous
Sales and Franchise Taxes 0 30 19 4 12 65
QEL Requirements 175 50 75 75 75 450
Commissions 74 175 175
- --------------------------------------------------------------------------------------------------------------------------- --------
Total General & Administrative 243 160 333 115 634 169 389 348 437 1,977
- --------------------------------------------------------------------------------------------------------------------------- --------
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
Quad Systems Cash Flow Week Week Week Week Week Week Week Week Week 5 weeks
IN THOUSANDS Ending Ending Ending Ending Ending Ending Ending Ending Ending Ending
ACTUAL ACTUAL ACTUAL ACTUAL FCST FCST FCST FCST FCST FCST
7-Jan 14-Jan 21-Jan 28-Jan 4-Feb 11-Feb 18-Feb 25-Feb 4-Mar 4-Mar
- --------------------------------------------------------------------------------------------------------------------------- --------
Total O, G & A Dollars 243 162 361 185 655 216 473 350 460 2,154
- --------------------------------------------------------------------------------------------------------------------------- --------
Other Cash Requirements
Old Accounts Payable
Payroll Contra
Old Vendor Settlements
Capital Lease Payments 10 10
Restructuring costs/ADVISOR 50
US Trustee 4
Interest Expense $ 4 4 4 8
Congress Repayments 330 308 1,090 1,508 1,216 418 331 371 1,802 4,138
FUNB Repayments 155
Payroll funding
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL CASH USED 653 761 1,826 1,909 2,307 1,259 1,240 1,148 2,715 8,669
- ------------------------------------------------------------------------------------------------------------------------------------
CASH RECEIPTS
Pre-Petition Accounts Receivable 293 263 1,133 796 60 90 39 2 16 207
Post Petition Accounts Receivable 0 326 53 437 1,156 328 292 369 1,786 3,931
Other Cash 2 46 3
Congress Advances 400 150 500 485 1,091 841 909 777 913 4,531
- --------------------------------------------------------------------------------------------------------------------------- --------
TOTAL CASH GENERATED 695 785 1,689 1,719 2,307 1,259 1,240 1,148 2,715 8,669
- --------------------------------------------------------------------------------------------------------------------------- --------
CASH + OR - PERIOD 76 (257) (236) 84
CASH PRIOR PERIOD 499 575 319 82 82 82 82 82 82 82
Cash Period to Date 575 319 82 167 82 82 82 82 82 82
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
Quad Systems Cash Flow Week Week Week Week Week Week Week Week Week 5 weeks
IN THOUSANDS Ending Ending Ending Ending Ending Ending Ending Ending Ending Ending
ACTUAL ACTUAL ACTUAL ACTUAL FCST FCST FCST FCST FCST FCST
7-Jan 14-Jan 21-Jan 28-Jan 4-Feb 11-Feb 18-Feb 25-Feb 4-Mar 4-Mar
Bank Line Roll forward
Congress Line Beginning 4,974 5,044 4,886 4,296 3,273 3,148 3,571 4,149 4,555 3,273
Add Borrowings 400 150 500 485 1,091 841 909 777 913 4,531
Deduct Paydowns (330) (308) (1,090) (1,508) (1,216) (418) (331) (371) (1,802) (4,138)
Congress Line Ending 5,044 4,886 4,296 3,273 3,148 3,571 4,149 4,555 3,666 3,666
Average balance
A/R Roll forward
Beginning Gross A/R 3,956 4,085 3,681 3,649 2,828 1,987 2,973 3,751 4,153 2,828
Beginning Net A/R 3,956 4,085 3,681 3,649 2,828 1,987 2,973 3,751 4,153 2,828
Add Revenue 422 185 1,154 413 375 1,404 1,109 773 1,011 4,672
Deduct Collections (293) (589) (1,185) (1,234) (1,216) (418) (331) (371) (1,802) (4,138)
Ending Net A/R 4,085 3,681 3,649 2,828 1,987 2,973 3,751 4,153 3,362 3,362
Estimated Collections @
A/P Roll forward
Beginning A/P 10,107 10,199 10,358 10,358 10,499 10,519 10,468 10,445 10,460 10,499
Purchases and COD 424 869 1,763 633 794 574 707 571 3,279
Deduct Payments (332) (710) (1,622) (613) (845) (597) (692) (571) (3,318)
Ending A/P 10,199 10,358 10,358 10,499 10,519 10,468 10,445 10,460 10,460 10,460
Misc Accruals 0 0 0 0 0 0 0
Accrued Professional Fees 25 25 25 25 75
Inventory Analysis
Beginning Inventory 13,891 13,898 13,972 13,320 13,342 13,573 13,138 12,756 12,733 13,342
Add Inv. COD Purchases 164 107 316 372 608 406 479 417 2,282
Deduct Inventory Sales 157 33 294 141 1,043 788 502 723 3,197
Ending Inventory 13,898 13,972 13,972 13,342 13,573 13,138 12,756 12,733 12,427 12,427
Collateral Analysis QSC and QEL
A/R gross 8,147 8,295 8,094 7,667 6,826 7,812 8,590 8,992 8,201 6,826
Less Ineligibles (5,097) (5,307) (5,576) (5,813) (5,774) (5,767) (5,727) (5,727) (5,727) (4,352)
Eligible A/R 3,051 2,988 2,518 1,854 1,052 2,045 2,863 3,265 2,474 2,474
A/R Borrowing base 75% 2,288 2,241 1,889 1,390 789 1,534 2,147 2,449 1,856 1,856
FG Inventory
Gross Inventory 11,430 11,365 10,779 10,797 11,028 10,593 10,211 10,188 9,882 11,028
Ineligible Inventory (3,627) (3,456) (3,463) (3,580) (3,529) (3,390) (3,268) (3,260) (3,162) (4,308)
Eligible FG 7,802 7,909 7,316 7,217 7,499 7,203 6,943 6,928 6,720 6,720
FG Borrowing base 50% 3,901 3,955 3,658 3,608 3,750 3,602 3,472 3,464 3,360 3,360
Other eligible Inventory 7,152 6,749 7,049 7,060 7,168 6,885 6,637 6,622 6,423 7,168
Other Ineligible Inventory (5,368) (4,606) (5,076) (5,058) (4,946) (4,751) (4,580) (4,569) (4,432) (5,177)
Other eligible Inventory
borrowing 1,784 2,144 1,973 2,001 2,222 2,134 2,058 2,053 1,991 1,991
Other eligible Inventory
borrowing base 35% 624 750 691 700 778 747 720 719 697 697
Total available borrowing base 6,813 6,946 6,237 5,699 5,316 5,882 6,339 6,631 5,912 5,912
L/C (39) (39) (39) (39)
Congress Loan Balance (4,841) (4,886) (4,296) (3,273) (3,148) (3,571) (4,149) (4,555) (3,666) (3,666)
Less special reserve (500) (500) (500) (500) (500) (500) (500) (500) (500) (500)
Less CARVE OUT (175) (200) (225) (250) (250) (250) (250)
Less out of balance @ Congress
IN (Out) of formula 1,434 1,521 1,402 1,712 1,468 1,586 1,440 1,326 1,496 1,496
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
In re: Quad Systems Corporation Case No. 00-35667
------------------------ Reporting Period: 12/19/00 to 1/31/01
Debtor
MONTHLY OPERATING REPORT
File with Court and submit copy to United States Trustee within 20
days after end of month
Submit copy of report to any official committee appointed in this case
- ------------------------------------------------------------------------------------------------------------------------------------
Document Explanation
REQUIRED DOCUMENTS Form No. Attached Attached
- ------------------------------------------------------------------------------------------------------------------------------------
Schedule of Cash Receipts and Disbursements MOR-1 X
- ------------------------------------------------------------------------------------------------------------------------------------
Bank Reconciliation (or copies of debtor's bank reconciliations) MOR-1 (CONT) X X
- ------------------------------------------------------------------------------------------------------------------------------------
Copies of bank statements X
- ------------------------------------------------------------------------------------------------------------------------------------
Cash disbursement journals X
- ------------------------------------------------------------------------------------------------------------------------------------
Statement of Operations MOR-2 X
- ------------------------------------------------------------------------------------------------------------------------------------
Balance Sheet MOR-3 X
- ------------------------------------------------------------------------------------------------------------------------------------
Status of Postpetition Taxes MOR-4 X
- ------------------------------------------------------------------------------------------------------------------------------------
Copies of IRS Form 6123 or payment receipt X
- ------------------------------------------------------------------------------------------------------------------------------------
Copies of tax returns filed during reporting period X
- ------------------------------------------------------------------------------------------------------------------------------------
Summary of Unpaid Postpetition Debts MOR-4 X
- ------------------------------------------------------------------------------------------------------------------------------------
Listing of aged accounts payable X
- ------------------------------------------------------------------------------------------------------------------------------------
Accounts Receivable Reconciliation and Aging MOR-5 X
- ------------------------------------------------------------------------------------------------------------------------------------
Debtor Questionnaire MOR-5 X
- ------------------------------------------------------------------------------------------------------------------------------------
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and
the documents attached are true and correct to the best of my knowledge and
belief.
- ------------------------------------- -----------------------------------
Signature of Debtor Date
- ------------------------------------- -----------------------------------
Signature of Joint Debtor Date
/s/ Anthony R. Drury March 9, 2001
- ------------------------------------- -----------------------------------
Signature of Authorized Individual* Date
Anthony R. Drury Sr. Vice President, Finance
- ------------------------------------- -----------------------------------
Printed Name of Authorized Individual Title of Authorized Individual
*Authorized individual must be an officer, director or shareholder if debtor is
a corporation; a partner if debtor is a partnership; a manager or member if
debtor is a limited liability company.
FORM MOR
(9/99)
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
In re: Quad Systems Corporation Case No. 00-35667
------------------------ Reporting Period: 12/18/00-1/31/01
Debtor
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
Amounts reported should be per the debtor's books, not the bank statement. The
beginning cash should be the ending cash from the prior month or, if this is the
first report, the amount should be the balance on the date the petition was
filed. The amounts reported in the "CURRENT MONTH - ACTUAL" column must equal
the sum of the four bank account columns. The amounts reportedin the "PROJECTED"
columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM IR-1).
Attach copies of the bank statements and the cash disbursement journal. The
total disbursements listed in the disbursement journal must equal the total
disbursements reported on this page. A bank reconciliation must be attached for
each account. [See MOR-1 (CON'T)]
- ------------------------------------------------------------------------------------------------------------------------------------
CUMULATIVE FILING
BANK ACCOUNTS CURRENT MONTH TO DATE
- ------------------------------------------------------------------------------------------------------------------------------------
OPER PAYROLL Canada P/R Lockbox ACTUAL PROJECTED ACTUAL PROJECTED
- ------------------------------------------------------------------------------------------------------------------------------------
Cash Beginning of Month 161,799 425,236 6,675 384,051 977,761 977,761 977,761 977,761
- ------------------------------------------------------------------------------------------------------------------------------------
RECEIPTS
Cash Sales
Accounts Receivable 4,321,649 4,321,649 1,297,000 4,321,649 1,297,000
Loans and Advances 2,035,000 2,035,000 1,096,000 2,035,000 1,096,000
Sale of Assets
Other (Attach List) 46,000 5,000 51,000 - 51,000 -
Transfers (From DIP Accts) 500,000 7,256 507,256 - 507,256 -
- - - -
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RECEIPTS 2,081,000 500,000 7,256 4,326,649 6,914,905 2,393,000 6,914,905 2,393,000
- ------------------------------------------------------------------------------------------------------------------------------------
DISBURSEMENTS
Net Payroll 461,549 665,646 8,805 1,136,000 1,077,000 1,136,000 1,077,000
Payroll Taxes 104,552 118,448 223,000 174,000 223,000 174,000
Sales, Use & Other Taxes - - 1,000 - 1,000
Inventory Purchases 575,000 575,000 812,000 575,000 812,000
Secured Rental/Leases 69,000 69,000 77,000 69,000 77,000
Insurance 33,000 33,000 66,000 33,000 66,000
Administrative 47,502 1,498 49,000 253,000 49,000 253,000
Selling 205,000 205,000 234,000 205,000 234,000
Other (Attach List) 159,000 4,593,000 4,752,000 2,376,000 4,752,000 2,376,000
Owner Draw*
Transfers (To DIP Accts) 507,256 507,256 - 507,256 -
Professional Fees 50,000 50,000 50,000 50,000 50,000
U.S. Trustee Quarterly Fees 4,000 4,000 4,000 4,000 4,000
Court Costs
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISBURSEMENTS 2,215,859 785,592 8,805 4,593,000 7,603,256 5,124,000 7,603,256 5,124,000
- ------------------------------------------------------------------------------------------------------------------------------------
NET CASH FLOW (134,859) (285,592) (1,549) (266,351) (688,351) (2,731,000) (688,351) (2,731,000)
- ------------------------------------------------------------------------------------------------------------------------------------
CASH - END OF MONTH 26,940 139,644 5,126 117,700 289,410 (1,753,239) 289,410 (1,753,239)
- ------------------------------------------------------------------------------------------------------------------------------------
*Compensation to sole proprietors for services rendered to bankruptcy estate
Note: In order to be consistent with our Budgets the line above labeled "Net
Payroll" includes the gross salaries. In addition the line above
labeled "Payroll Taxes" also includes all fringe benefit disbursements.
THE FOLLOWING SECTION MUST BE COMPLETED
- ------------------------------------------------------------------------------
Disbursements for calculating U.S. Trustee Quarterly Fees
(From Current Month Actual Column)
- ------------------------------------------------------------------------------
Total Disbursements 7,603,256
- ------------------------------------------------------------------------------
Less: Transfers to Debtor in Possession Accounts (507,256)
- ------------------------------------------------------------------------------
Plus: Estate Disbursements made by outside sources
(I.e. from escrow account) -
- ------------------------------------------------------------------------------
Total Disbursements for Calculating U.S. Trustee Quarterly Fees 7,096,000
- ------------------------------------------------------------------------------
FORM MOR-1
(9/99)
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
Quad Systems Corporation
Schedule MOR 1
Actual Projected
Explanation of Other Income
- ---------------------------
Void Prepetition Checks 46,000 0
Rental of Parking lot 1,000 0
Misc COBRA pmts/refunds 4,000 0
-----------------------------------
Total 51,000 0
===================================
Explanation of Other Disbursements
- ----------------------------------
Congress Repayments 4,593,000 2,115,000
First Union Loan Repayments 155,000 155,000
Interest Expense 4,000 4,000
Commissions 0 74,000
Engineering 0 3,000
QEL Requirements 0 25,000
-----------------------------------
Total 4,752,000 2,376,000
===================================
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
In re: Quad Systems Corporation Case No. 00-35667
------------------------ Reporting Period: 12/18/00-1/31/011
Debtor
STATEMENT OF OPERATIONS
(Income Statement)
The Statement of Operations is to be prepared on an accrual basis. The accrual
basis of accounting recognizes revenue when it is realized and expenses when
they are incurred, regardless of when cash is actually received or paid.
Cumulative Filing
REVENUES Month to Date
- ------------------------------------------------------------------------------------------------------------------------
Gross Revenues $ 4,833,566 $ 4,833,566
Less: Returns and Allowances - -
- ------------------------------------------------------------------------------------------------------------------------
Net Revenue $ 4,833,566 $ 4,833,566
- ------------------------------------------------------------------------------------------------------------------------
COST OF GOODS SOLD
Beginning Inventory 15,046,970 15,046,970
Add: Purchases 778,622 778,622
Add: Cost of Labor 72,400 72,400
Add: Other Costs (attach schedule) 652,048 652,048
Less: Ending Inventory 13,153,543 13,153,543
Cost of Goods Sold 3,396,497 3,396,497
- ------------------------------------------------------------------------------------------------------------------------
Gross Profit 1,437,069 1,437,069
- ------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Advertising 6,410 6,410
Auto and Truck Expense - -
Bad Debts - -
Contributions - -
Employee Benefit Programs 4,224 4,224
Insider Compensation* - -
Insurance 33,975 33,975
Management Fees/Bonuses - -
Office Expense 13,049 13,049
Pension & Profit-Sharing Plans - -
Repairs and Maintenance 6,936 6,936
Rent and Lease Expense 99,772 99,772
Salaries/Commissions/Fees 975,087 975,087
Supplies (14,568) (14,568)
Taxes - Payroll 113,675 113,675
Taxes - Real Estate 4,213 4,213
Taxes - Other (24,988) (24,988)
Travel and Entertainment 97,443 97,443
Utilities 48,281 48,281
Other (attach schedule) 68,386 68,386
Total Operating Expenses Before Depreciation 1,431,895 1,431,895
Depreciation/Depletion/Amortization 56,370 56,370
Net Profit (Loss) Before Other Income & Expenses (51,196) (51,196)
- ------------------------------------------------------------------------------------------------------------------------
OTHER INCOME AND EXPENSES -
Other Income (attach schedule) -
Interest Expense 72,479 72,479
Other Expense (attach schedule) -
Net Profit (Loss) Before Reorganization Items (123,675) (123,675)
- ------------------------------------------------------------------------------------------------------------------------
REORGANIZATION ITEMS -
Professional Fees 50,000 50,000
U.S. Trustee Quarterly Fees 4,000 4,000
Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet) -
Gain (Loss) from Sale of Equipment -
Other Reorganization Expenses (attach schedule) -
Total Reorganization Expenses 54,000 54,000
Income Taxes -
Net Profit (Loss) (177,675) (177,675)
- ------------------------------------------------------------------------------------------------------------------------
<FN>
*"Insider" is defined in 11 U.S.C. Section 101(31).
</FN>
FORM MOR-2
(9/99)
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
In re: Quad Systems Corporation Case No. 00-35667
------------------------ Reporting Period: 12/18/00-1/31/011
Debtor
STATEMENT OF OPERATIONS - continuation sheet
- --------------------------------------------------------------------------------
Cumulative Filing
BREAKDOWN OF OTHER CATEGORY Month to Date
Other Costs
Overhead Absorption 262,000 MOR-2A
Service Labor Costs 95,357 95,357
Warranty Costs 88,207 88,207
Inventory Reserves 206,484 206,484
- --------------------------------------------------------------------------------
Total 652,048 652,048
- --------------------------------------------------------------------------------
Other Operational Expenses
Freight 15,072 15,072
Bank Charges & LOC Fees 58,427 58,427
Professional Fees (5,133) (5,133)
- --------------------------------------------------------------------------------
Total 68,366 68,366
- --------------------------------------------------------------------------------
Other Income
Other Expenses
Other Reorganization Expenses
Reorganization Items - Interest Earned on Accumulated Cash from Chapter 11:
Interest earned on cash accumulated during the chapter 11 case, which would not
have been earned but for the bankruptcy proceeding, should be reported as a
reorganization item.
FORM MOR-2 (CONT)
(9/99)
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
In re: Quad Systems Corporation Case No. 00-35667
------------------------ Reporting Period: 12/18/00-1/31/01
Debtor
BALANCE SHEET
The Balance Sheet is to be completed on an accrual basis only. Pre-petition
liabilities must be classified separately from postpetition obligations.
BOOK VALUE
AT END OF BOOK VALUE
CURRENT ON
REPORTING PETITION
ASSETS MONTH DATE
- -------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Unrestricted Cash and Equivalents 145,892 161,799
Restricted Cash and Cash Equivalents (see continuation sheet) 284,897 815,962
Accounts Receivable (Net) 2,086,818 3,130,385
Notes Receivable - -
Inventories 13,153,543 15,046,970
Prepaid Expenses 360,490 433,952
Professional Retainers - -
Other Current Assets (attach schedule) 388,940 (325,421)
- -------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 16,420,580 19,263,647
- -------------------------------------------------------------------------------------------------------------
PROPERTY AND EQUIPMENT
Real Property and Improvements 276,575 276,575
Machinery and Equipment 2,124,028 2,124,028
Furniture, Fixtures and Office Equipment 3,210,503 3,210,503
Leasehold Improvements 330,078 330,078
Vehicles 30,594 30,594
Less Accumulated Depreciation 4,419,638 4,324,223
- -------------------------------------------------------------------------------------------------------------
TOTAL PROPERTY & EQUIPMENT 1,552,140 1,647,555
- -------------------------------------------------------------------------------------------------------------
OTHER ASSETS
Loans to Insiders* -
Other Assets (attach schedule) 1,053,734 1,054,423
- -------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 1,053,734 1,054,423
- -------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 19,026,454 21,965,625
=============================================================================================================
BOOK VALUE
AT END OF BOOK VALUE
CURRENT ON
REPORTING PETITION
LIABILITIES AND OWNER EQUITY MONTH DATE
- -------------------------------------------------------------------------------------------------------------
LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition)
Accounts Payable 264,424 8,246,757
Taxes Payable (refer to FORM MOR-4) 360,963 370,167
Wages Payable 371,690 671,333
Notes Payable - -
Rent/Leases - Building/Equipment 212,870 220,133
Secured Debt / Adequate Protection Payments 3,266,520 6,317,257
Professional Fees - -
Amounts Due to Insiders* - -
Other Postpetition Liabilities (attach schedule) 2,945,977 3,861,109
- -------------------------------------------------------------------------------------------------------------
TOTAL POSTPETITION LIABILITIES 7,422,444 19,686,756
- -------------------------------------------------------------------------------------------------------------
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Secured Debt
Priority Debt 185,481 -
Unsecured Debt 9,317,335 -
TOTAL PRE-PETITION LIABILITIES 9,502,816 -
- -------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 16,925,260 19,686,756
- -------------------------------------------------------------------------------------------------------------
OWNER EQUITY
Capital Stock 135,531 135,531
Additional Paid-In Capital 24,733,708 24,733,708
Partners' Capital Account - -
Owner's Equity Account - -
Retained Earnings - Pre-Petition (22,590,370) (22,590,370)
Retained Earnings - Postpetition (177,675) -
Adjustments to Owner Equity (attach schedule) - -
Postpetition Contributions (Distributions) (Draws) (attach schedule) - -
- -------------------------------------------------------------------------------------------------------------
NET OWNER EQUITY 2,101,194 2,278,869
- -------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND OWNERS EQUITY 19,026,454 21,965,625
- -------------------------------------------------------------------------------------------------------------
<FN>
*"Insider" is defined in 11 U.S.C. Section 101(31).
</FN>
FORM MOR-3
(9/99)
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
In re: Quad Systems Case No. 00-35667
------------ Reporting Period: 12/18/00-1/31/01
Debtor
BALANCE SHEET - continuation sheet
BOOK VALUE
AT END OF BOOK VALUE
CURRENT ON
REPORTING PETITION
ASSETS MONTH DATE
- ----------------------------------------------------------------------------------------------
Other Current Assets
Accts Rec - Misc 226,061 537
Temp. Empl Advances 23,118 43,891
Permanent Advances 921 921
Deposits 405,165 40,437
Interco - Current (266,325) (411,207)
Other Assets
Acquisition Costs - QEL 7,984 8,598
Patent Costs 1,902 1,977
Invest - BIMARK/QFSC 4,026,831 4,026,831
Invest - QEL 2,500,000 2,500,000
Interco - Long Term (10,145,262) (10,145,262)
Invest - SMTECH 4,662,279 4,662,279
BOOK VALUE
AT END OF BOOK VALUE
CURRENT ON
REPORTING PETITION
LIABILITIES AND OWNER EQUITY MONTH DATE
- ----------------------------------------------------------------------------------------------
Other Postpetition Liabilities
Deferred Revenue 1,154,753 1,151,531
Customer Deposits 266,702 416,644
Accrued Expenses 1,022,752 1,872,647
Commission Payable 501,770 420,287
Liabilities Subj. Compr
Postpetition Contributions (Distributions) (Draws)
Restricted Cash: cash that is restricted for a specific use and not available to
fund operations. Typically, restricted cash is segregated into a separate
account, such as an escrow account.
FORM MOR-3 (CONT)
(9/99)
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
In re: Quad Systems Corporation Case No. 00-35667
------------------------ Reporting Period: 12/18/00-1/31/01
Debtor
STATUS OF POSTPETITION TAXES
The beginning tax liability should be the ending liability from the prior month
or, if this is the first report, the amount should be zero. Attach photocopies
of IRS Form 6123 or payment receipt to verify payment or deposit of federal
payroll taxes Attach photocopies of any tax returns filed during the reporting
period
Amount
Beginning Withheld or Amount Check No. Ending Tax
Tax Liability Accrued Paid Date Paid or EFT Liability
- ------------------------------------------------------------------------------------------------------------------------------------
Federal
Withholding - 137,615 137,615 12/22,1/5,1/19 ADP EFT -
FICA-Employee - 71,912 71,912 12/22,1/5,1/19 ADP EFT -
FICA-Employer - 71,912 71,912 12/22,1/5,1/19 ADP EFT -
Unemployment - 4,902 4,902 12/22,1/5,1/19 ADP EFT -
Income - - -
Other: Tax Accounting Accrual Only
from prior years - 352,702 - 352,702
Total Federal Taxes - 639,043 286,341 - - 352,702
State and Local
Withholding - 39,416 39,416 12/22,1/5,1/19 ADP EFT -
Sales - 37,852 29,591 1/30/01 Calif EFT 8,261
Excise - -
Unemployment - 36,314 36,314 12/22,1/5,1/19 ADP EFT -
Real Property - -
Other: - -
Total State and Local - 113,582 105,321 - - 8,261
Total Taxes - 752,625 391,662 - - 360,963
SUMMARY OF UNPAID POSTPETITION DEBTS
Attach aged listing of accounts payable.
Number of Days Past Due
-------------------------------------------------------------
Current 0-30 31-60 61-90 Over 90 Total
------- ---- ----- ----- ------- -----
Accounts Payable 195,605 68,819 264,424
Wages Payable 371,690 371,690
Taxes Payable 8,261 352,702 360,963
Rent/Leases-Building - -
Rent/Leases-Equipment 212,870 212,870
Secured Debt/Adequate Protection Payments 3,266,520 3,266,520
Professional Fees - -
Amounts due to Insiders* -
Other: -
Other: -
- -----------------------------------------------------------------------------------------------------------------------------
Total Postpetition Debts 4,054,946 68,819 - - 352,702 4,476,467
=============================================================================================================================
Explain how and when the Debtor intends to pay any past due postpetition debts.
Note: above Taxes Payable in Past Due Column represents an prior year accounting
accrual only. It does not represent an actual payment due.
*"Insider" is defined in 11 U.S.C. Section 101(31).
FORM MOR-4
(9/99)
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
In re: Quad Systems Corporation Case No. 00-35667
------------------------ Reporting Period: 12/18/00-1/31/01
Debtor
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
Accounts Receivable Reconciliation Amount
Total Accounts Receivable at the beginning of the reporting period 3,130,385
+ Amounts billed during the period 4,502,012
- - Amounts collected during the period 5,545,579
Total Accounts Receivable at the end of the reporting period 2,086,818
Accounts Receivable Aging
0 - 30 days old 1,490,032
31 - 60 days old 733,689
61 - 90 days old 11,644
91+ days old 19,453
Total Accounts Receivable 2,254,818
Amount considered uncollectible (Bad Debt) (168,000)
Accounts Receivable (Net) 2,086,818
Note: the Accounts Receivable collections include the application of customer
deposits received in prior periods
FORM MOR-5
(9/99)
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF PENNSYLVANIA
In re: Quad Systems Corporation Case No. 00-35667
------------------------ Reporting Period: 12/18/00-1/31/01
Debtor
DEBTOR QUESTIONNAIRE
Must be completed each month Yes No
1. Have any assets been sold or transferred outside the normal course of
business this reporting period? If yes, provide an explanation below. X
2. Have any funds been disbursed from any account other than a debtor in
possession account this reporting period? If yes, provide an explanation below. X
3. Have all postpetition tax returns been timely filed? If no, provide an
explanation below. X
4. Are workers compensation, general liability and other necessary insurance
coverages in effect? If no, provide an explanation below. X
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FORM MOR-5
(9/99)