EXHIBIT 99.4
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
ALEXANDRIA DIVISION
In Re: NxNetworks, Inc. Chapter 11
Debtor(s) Case Number: 01-14233
--------------
MONTHLY OPERATING REPORT
CALENDAR MONTH JULY 1, 2002 TO JULY 31, 2002
-----------------------------
FINANCIAL BACKGROUND INFORMATION
1. ACCOUNTING BASIS: Cash Accrual X
----- -----
2. PREPARER: State the name, address, telephone number and position of
the person(s) who actually compiled the information contained in this
report.
Location: NxNetworks, Inc. 13595 Dulles Technology Drive, Herndon, VA
20171; Greg Washenko (CFO) 703-793-2059 and Jennifer Bell (Controller)
703-793-2076
3. NUMBER OF EMPLOYEES paid during this period: 2
---
4. Have there been any CHANGES IN THE NATURE OF YOUR BUSINESS since the
last reporting period? Yes / / No /X/. If yes, explain below:
5. Are all BUSINESS LICENSES current? Yes /X/ No / / Not Applicable / /
6. PRE-PETITION ACCOUNTS RECEIVABLE:
Beginning Balance $0
Collected this Period $
Write-offs against allowance
Sale of asset $0
Ending Balance $0
7. POST-PETITION ACCOUNTS RECEIVABLE:
0-30 Days: $0 31-60 Days: $0 Over 61-90: $0 Days over 90: $0
--- --- --- ---
If there are any post-petition Accounts Receivable over 60 days,
provide schedule AR giving a listing of such accounts and explain the
delinquencies.
8. POST-PETITION ACCOUNTS PAYABLE:
0-30 Days: $81,764.87 31-60 Days: $9,288.98 Over 60 Days: $21,881.40
---------- --------- ----------
If there are any post-petition Accounts Payable over 30 days, provide
Schedule AP giving a listing of such accounts and explain the delinquencies.
9. TAXES. Are all taxes being paid to the proper taxing authorities when
due? Yes /X/ No / / -- Payroll tax is current but sales, property and business
taxes are overdue. On the attached IRS Form 6123 report all tax deposits made
with any financial institution for federal employment taxes. Be sure the form is
complete and signed by an authorized employee of the receiving institution or
taxing authority. Attach to this report a completed Form 6123 for each deposit
made during the reporting period. Also attach copies of the monthly sales tax
report, payroll tax report and unemployment tax report with evidence of payment
of both federal and state taxes.
10. ESCROW ACCOUNTS. Are you utilizing your tax account only for deposits
and payment of payroll and sales taxes? Yes /X/ No / /. If no, explain:
--------
11. Are all BOOKS AND RECORDS of the debtor(s) being maintained monthly and
are all current? Yes /X/ No / / Explain:
12. INSURANCE EXPIRATION STATEMENT. Policy expiration dates are:
Auto & Truck 4/01/02 Liability 4/01/02
------- -------
Fire Workers Comp. 4/01/02
----------- --------
13. ACTIONS OF DEBTOR. During the last month, did the debtor:
(A) Fail to defend or not oppose any action seeking to dispossess the
debtor from control or custody of any asset of the estate?
Yes / / No / / Explain: ___________________________________________
(B) Maintain such stock, inventory, raw materials, insurance, employees
and other resources as are necessary to preserve and maintain the
going-concern value of the assets of the debtor? Yes /X/ No / /
Explain: _____________________________________________________________
14. TRANSFER OR SALE OF PROPERTY. Did the debtor or any person with control
over any of the debtor's assets transfer, convey or abandon any of the
debtor's assets to another party during the period of this report other
than as set forth herein (including sales by creditors)? Yes /X/ No / /
Explain: On March 6, 2002, the US Bankruptcy Court for the Eastern
District of Virginia issued an order in which it approved the sale of
substantially all of Nx Networks' assets to NSGData.com pursuant to
section 363 of the US Bankruptcy code.
15. PAYMENTS TO SECURED CREDITORS during reporting period:
(Attach additional sheets, if necessary.)
- --------------------------------------------------------------------------------
Creditor Freq. Of Payments per Amount Next Post Petition
Contract (mo, qtr) of Each Payment Pmts. not made
Payment Due No. Amt.
- --------------------------------------------------------------------------------
None
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
16. PAYMENTS TO PROFESSIONALS (Attorneys, Accountants, Real Estate Agents,
Auctioneers, Appraisers, etc., during reporting period: (Attach
additional sheets, if necessary.)
-----------------------------------------------------------------------
Professional Service Amount
-----------------------------------------------------------------------
Richard Yalen CEO $1,000.00
-----------------------------------------------------------------------
-----------------------------------------------------------------------
-----------------------------------------------------------------------
17. QUARTERLY U.S. TRUSTEE FEES paid during reporting period: $3,750.00
---------
18. VERIFICATION: I declare under penalty of perjury that the information
contained in this monthly operating report (including attached schedules) is
true and correct to the best of my knowledge, information and belief.
Dated: 8/16/02 DEBTOR-IN-POSSESSION
Name/Title: Rich Yalen By:
---------------------------- ---------------------------------
Address: 13595 Dulles Technology Drive
-----------------------------
Herndon, VA 20171 Phone:
----------------------------- -----------------------------
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
ALEXANDRIA DIVISION
In Re: Chapter 11
Debtor(s) Case Number: ______________
MONTHLY OPERATING REPORT
INCOME STATEMENT
(BUSINESS DEBTOR, ACCRUAL BASIS)
CALENDAR MONTH JULY 1 TO JULY 31, 2002
(All figures refer to post-petition transactions)
THIS MONTH YEAR TO DATE
(A) TOTAL SALES/INCOME (A) __________ ____________ SEE ATTACHED
COST OF SALES
Beginning Inventory __________ ____________
Purchases of Inventory __________ ____________
Less Ending Inventory (________) (__________)
Direct Labor (Gross Salaries) __________ ____________
Purchased Services __________ ____________
(B) TOTAL COST OF SALES (B) __________ ____________
(C) GROSS PROFIT (C = A - B) __________ ____________
OPERATING EXPENSES
Officer Salaries (Gross) __________ ____________
Other Employee Salaries (Gross) __________ ____________
Taxes (Payroll: Employer's Share) __________ ____________
Employee Benefits (Insurance, Pension
Plan, etc. Employer's Share)
Advertising __________ ____________
Bad Debts __________ ____________
Depreciation and Amortization __________ ____________
Entertainment __________ ____________
Insurance (Real Estate) __________ ____________
Insurance (Other) __________ ____________
Interest (Mortgage, Loans, etc.) __________ ____________
Leases (other than Rent) __________ ____________
Outside Services & Contractors __________ ____________
Professional Fees (Attorney, Accountant) __________ ____________
Rent and leases __________ ____________
Repairs & Maintenance __________ ____________
Supplies __________ ____________
Taxes (Real Property) __________ ____________
Taxes (Other) __________ ____________
Telephone __________ ____________
Travel __________ ____________
Utilities __________ ____________
U.S. Trustee Quarterly Fee __________ ____________
CASE NUMBER: ________________ PERIOD ENDED: ___________ INCOME STATEMENT PAGE 2
THIS MONTH YEAR TO DATE
OTHER OPERATING EXPENSES
_____________________________________ __________ ____________
_____________________________________ __________ ____________
_____________________________________ __________ ____________
_____________________________________ __________ ____________
(D)TOTAL OPERATING EXPENSES (D) __________ ____________
(E) PROFIT/LOSS FROM OPERATIONS (E=C-D) __________ ____________
OTHER INCOME (EXPENSES) __________ ____________
Interest Income __________ ____________
Interest Exp (________) (__________)
_____________________________________ __________ ____________
_____________________________________ __________ ____________
_____________________________________ __________ ____________
_____________________________________ __________ ____________
EXTRAORDINARY ITEMS- In (Out)
_____________________________________ __________ ____________
_____________________________________ __________ ____________
_____________________________________ __________ ____________
_____________________________________ __________ ____________
(F) TOTAL OTHER INCOME/EXPENSE &
EXTRAORDINARY ITEMS (F) __________ ____________
(G) INCOME BEFORE TAXES (G = E+F) __________ ____________
(H) INCOME TAX EXPENSE (H) __________ ____________
(I) NET INCOME (LOSS)(I = G - H) __________ ____________
NOTE: Accrual basis reporters must attach CASH RECONCILIATION REPORTS or a
standard Statement of Sources and Uses of Cash to this Report.
In Re: _____________________________ Case Number _____________________
CASH RECONCILIATION REPORT
(BUSINESS DEBTOR, ACCRUAL BASIS)
CALENDAR MONTH ENDING JULY 31, 2002
(All figures refer to post-petition transactions)
OPERATING TOTALS
ACCOUNT
(A) BEGINNING CASH BALANCE (A) _________ SEE ATTACHED
(B) NET INCOME, (LINE (I), PAGE 23) (B) _________ _________
Add Expenses Not Requiring Cash:
Depreciation _________
___________________________ _________
___________________________ _________
(C) SUB-TOTAL (C) _________ _________
(D) CASH FROM OPERATIONS (D = B + C) _________ _________
OTHER SOURCES (USES) OF CASH:
SOURCES (USES)
Decrease (Incr) - Accounts Receivable _________
Decrease (Incr) - Inventory _________
Decrease (Incr) - Equipment _________
Decrease (Incr) - Furniture & Fixtures _________
Decrease (Incr) - _________________ _________
Decrease (Incr) - _________________ _________
Increase (Decr) - Accounts Payable _________
Increase (Decr) - Accrued Interest _________
Increase (Decr) - Accrued P/R Taxes _________
Increase (Decr) - Accrued Prof. Fees _________
Increase (Decr) - Accrued Rent _________
Increase (Decr) - Accrued Salaries _________
Increase (Decr) - Accrued Sales Taxes _________
Increase (Decr) - Notes Payable -Banks _________
Increase (Decr) - Notes Payable -Other _________
Increase (Decr) - ____________________ _________
Increase (Decr) - ____________________ _________
(Less) Unrecorded bank service charges _________
(E) TOTAL OTHER SOURCES (USES) OF CASH (E)
(F) ENDING CASH BALANCE (F = A+D+E) _________ _________
(G) BALANCE PER BANK STATEMENT* (G) _________
(H) LESS OUTSTANDING CHECKS (H) _________
(I) ADD DEPOSITS IN TRANSIT (I) _________
(J) RECONCILED BANK BALANCE {J=(G-H)+I} _________
Ending Cash Balance(F) and Reconciled Bank Balance(J) should equal.
- -------------------------------------------------------------------
In Re: _____________________________ Case Number _____________________
CASH RECONCILIATION REPORT
PAYROLL AND TAX ACCOUNTS
(BUSINESS DEBTOR, ACCRUAL BASIS)
CALENDAR MONTH ENDING _____________
(All figures refer to post-petition transactions)
PAYROLL TAX
ACCOUNT ACCOUNT
(A) BEGINNING CASH BALANCE (A) ___________ __________
CASH RECEIPTS:
Transfers from Operating Account ___________ __________
Transfers from Payroll Account ___________
Other - ________________________ ___________ __________
________________________________
(B) TOTAL CASH RECEIPTS (B) ___________ __________
(C) CASH AVAILABLE (C = A + B) ___________ __________
CASH DISBURSEMENTS:
Gross Payroll for this period $ ___________
Employee Benefits paid ___________
Net Payroll Paid ___________
Transfers to Tax Account ___________
Taxes deposited or paid during period
Employees' share of FICA Tax ___________ __________
Employer's share of FICA Tax ___________ __________
Employees' Federal Income Tax ___________ __________
Employees' State Income Tax ___________ __________
Unemployment Tax ___________ __________
Unrecorded Bank Service Charges ___________ __________
Other: _________________ ___________ __________
(D) TOTAL DISBURSEMENTS (D) ___________ __________
(E) ENDING CASH BALANCE (E = C-D) ___________ __________
(F) BALANCE PER BANK STATEMENT(S)* (F) ___________ __________
(G) LESS OUTSTANDING CHECKS (G) ___________ __________
(H) ADD DEPOSITS IN TRANSIT (H) ___________ __________
(I) RECONCILED BANK BALANCE {I =(F-G)+H} ___________ __________
Ending Cash Balance(E) and Reconciled Bank Balance(I) should equal.
- -------------------------------------------------------------------
In Re: _____________________________ Case Number _____________________
BALANCE SHEET
AS OF __________________
CURRENT ASSETS
Cash $__________ SEE ATTACHED
Pre-Petition Accounts Receivable __________
Post-Petition Accounts Receivable __________
Receivable from Officers,
Employees, Affiliates __________
Notes Receivable __________
Inventory __________
Other Current Assets:
___________________________ __________
___________________________ __________
TOTAL CURRENT ASSETS __________
FIXED ASSETS
Land __________
Buildings __________
Equipment, Furniture & Fixtures __________
less Accumulated Depreciation (________)
TOTAL FIXED ASSETS __________
OTHER ASSETS
________________________________ __________
________________________________ __________
________________________________ __________
TOTAL OTHER ASSETS __________
TOTAL ASSETS __________
POST-PETITION LIABILITIES
Accounts Payable __________
Notes Payable __________
Rents and Leases Payable __________
Taxes Payable __________
Accrued Interest __________
_______________________________ __________
TOTAL-POST PETITION LIABILITIES __________
PRE-PETITION LIABILITIES
Priority Claims __________
Secured Debts __________
Unsecured Debt __________
TOTAL PRE-PETITION LIABILITIES __________ __________
OWNERS EQUITY (DEFICIT)
Capital Stock or Owners Investment __________
Paid In Capital Surplus __________
Retained Earnings (Deficit)
Pre -Petition __________
Post-Petition __________
TOTAL OWNERS EQUITY __________
TOTAL LIABILITIES AND OWNER'S EQUITY __________
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
ALEXANDRIA DIVISION
In Re: )
) Chapter 11
) Case Number: 01-14223
) ----------
Debtor(s) )
- ------------------------------------
CASH DISBURSEMENTS SUMMARY REPORT
Calendar Month Ending July 31, 2002
Total Disbursements from Operating Account
(See Note 1) $16,001.35
-----------
Total Disbursements from Payroll Account
(See Note 2) $10,215.20
----------
*One tax payment made from this account
Total Disbursements from Tax Escrow Account
(See Note 3) $2,705.52
---------
Total Disbursements from any other Account
(See Note 4) 0
----------
Grand Total Disbursements from all Accounts $28,922.07
----------
NOTE 1 --Include in this amount all checks written, wire transfers made from, or
any other withdrawal from the GENERAL OPERATING ACCOUNT. Exclude only transfers
to the debtor-in-possession payroll account, the debtor in possession tax escrow
account or other debtor in possession account where the disbursements will be
listed on this report.
NOTE 2 --Include in this amount all checks written, wire transfers made from, or
any other withdrawal from the PAYROLL ACCOUNT. Exclude only transfers to the
debtor-in-possession operating account, the debtor in possession tax escrow
account or other debtor-in-possession account where the disbursements will be
listed on this report.
NOTE 3 --Include in this amount all checks written, wire transfers made from, or
any other withdrawal from the TAX ESCROW ACCOUNT. Exclude only transfers to the
debtor-in-possession operating account, the debtor in possession payroll account
or other debtor in possession account where the disbursements will be listed on
this report.
NOTE 4 -- Include in this amount any other disbursements made by the debtor
including (but not limited to) cash PAID FROM A PETTY CASH FUND OR CASH
REGISTER, amounts paid from any other debtor in possession account, and amounts
PAID FROM THE ACCOUNTS OF OTHERS ON THE DEBTORS BEHALF (for example,
disbursements made from a law firm's escrow account as a result of a sale of
property.)
ATTACH A COPY OF THE MOST RECENT MONTHLY BANK STATEMENT FOR EACH
DEBTOR-IN-POSSESSION ACCOUNT. (THE PAGE OF THE STATEMENT SHOWING BANK, ACCOUNT
NUMBER AND BEGINNING AND ENDING BALANCE IS SUFFICIENT.)
In Re: _____________________________ Case Number _____________________
ACCOUNTS RECEIVABLE
AS OF APRIL 30, 2002
TOTAL DATE PAST DUE PAST DUE
CREDITOR DUE INCURRED (31-60 DAYS) (OVER 60 DAYS)
NONE
TOTALS THIS
PAGE _______ ___________ __________
TOTALS ALL
PAGES _______ ___________ __________
In Re: _____________________________ Case Number _____________________
ACCOUNTS PAYABLE
AS OF __________________
TOTAL DATE PAST DUE PAST DUE
CREDITOR DUE INCURRED (31-60 DAYS) (OVER 60 DAYS)
SEE ATTACHED
TOTALS THIS
PAGE _________ __________ ___________
TOTALS ALL
PAGES _________ __________ ___________
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
ALEXANDRIA DIVISION
In Re: Chapter 11
Case Number _________
Debtor(s)
MONTHLY OPERATING REPORT
INCOME STATEMENT
(BUSINESS DEBTOR, CASH BASIS)
CALENDAR MONTH TO
-------- ----------
(All figures refer to post-petition transactions)
THIS MONTH YEAR TO DATE
(A) TOTAL SALES/INCOME (A) ______________ _____________
COST OF SALES
Purchases of Inventory ______________ _____________
Purchased Services ______________ _____________
_______________________ ______________ _____________
_______________________ ______________ _____________
(B) TOTAL COST OF SALES (B) ______________ _____________
(C) GROSS PROFIT (C = A - B) ______________ _____________
OPERATING EXPENSES
Officer Salaries (Gross) ______________ _____________
Other Employee Salaries (Gross) ______________ _____________
Taxes (Payroll: Employer's Share) ______________ _____________
Employee Benefits (Insurance, Pension
Plan, etc. Employer's Share)
______________ _____________
Advertising ______________ _____________
Automobile Expenses ______________ _____________
Entertainment ______________ _____________
Insurance (Real Estate) ______________ _____________
Insurance (Other) ______________ _____________
Interest ______________ _____________
Leases (other than Rent) ______________ _____________
Outside Services & Contractors ______________ _____________
Professional Fees (Attorney, Accountant) ______________ _____________
Rent ______________ _____________
Repairs & Maintenance ______________ _____________
Supplies ______________ _____________
Taxes (Real Property) ______________ _____________
Taxes (Other) ______________ _____________
Telephone ______________ _____________
Travel ______________ _____________
Utilities ______________ _____________
U.S. Trustee Quarterly Fee ______________ _____________
THIS MONTH YEAR TO DATE
OTHER OPERATING EXPENSES
__________________________________ ______________ _____________
__________________________________ ______________ _____________
__________________________________ ______________ _____________
__________________________________ ______________ _____________
(D) TOTAL OPERATING EXPENSES (D) ______________ _____________
(E) PROFIT/LOSS FROM OPERATIONS (E=C-D) ______________ _____________
OTHER INCOME (EXPENSES)
Interest
__________________________________ ______________ _____________
__________________________________ ______________ _____________
__________________________________ ______________ _____________
__________________________________ ______________ _____________
(F) TOTAL OTHER INCOME/EXPENSE (F) ______________ _____________
(G) INCOME BEFORE TAXES (G=E+F) ______________ _____________
(H) INCOME TAX EXPENSE (H) ______________ _____________
(I) NET INCOME (LOSS) (I = G-H) ______________ _____________
EXTRAORDINARY ITEMS
Loans Received ______________ _____________
Note Principal (Paid) ______________ _____________
Capital (Purchases) ______________ _____________
(Less) Unrecorded Bank Svc. Chg. ______________ _____________
__________________________________ ______________ _____________
__________________________________ ______________ _____________
__________________________________ ______________ _____________
__________________________________ ______________ _____________
(J) TOTAL EXTRAORDINARY ITEMS (J) ______________ _____________
(K) CASH FORWARD FROM PRIOR PERIOD (K) ______________ _____________
(L) ENDING CASH BALANCE (L = I+J+K) ______________ _____________
(M) BALANCE PER BANK STATEMENT(S)* (M) ______________ _____________
(N) LESS OUTSTANDING CHECKS (N) ______________ _____________
(O) ADD DEPOSITS IN TRANSIT (O) ______________ _____________
(P) RECONCILED BANK BALANCE {P=(M-N)+O} ______________ _____________
Ending Cash Balance(L) and Reconciled Bank Balance(P) should equal.
- -------------------------------------------------------------------
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
ALEXANDRIA DIVISION
In Re: ) Chapter 11
)
) Case Number __________
Debtor(s) )
- ----------------------------------
MONTHLY OPERATING REPORT
INCOME STATEMENT
(NON-BUSINESS DEBTOR, CASH BASIS)
CALENDAR MONTH TO
---------- -----------
(All figures refer to post-petition transactions)
THIS MONTH
INCOME
Salary, Wages, etc. ___________
Interest, dividends, investments ___________
Business income(Rents, Royalties,
Sale of Assets, etc.) ___________
Other: ________________________ ___________
(A) TOTAL INCOME (A) ___________
EXPENSES
Automobile
Car payment ___________
Insurance ___________
Other ___________
Housing
Mortgage payment ___________
Insurance ___________
Real estate tax ___________
Rent ___________
Utilities ___________
Insurance (Other) ___________
Interest ___________
Medical ___________
Personal Living Expenses ___________
Professional Fees (Attorney, Acct.,etc) ___________
Taxes (Other) ___________
_________________________________________
_________________________________________
(B) TOTAL EXPENSES (B) ___________
(C) CASH FLOW (C = A-B) ___________
(D) CASH FORWARD FROM PRIOR PERIOD (D) ___________
(E) ENDING CASH BALANCE (E = D+C) ___________
(F) BALANCE PER BANK STATEMENT(S)* (F) ___________
(G) LESS OUTSTANDING CHECKS (G) ___________
(H) ADD DEPOSITS IN TRANSIT (H) ___________
(I) RECONCILED BANK BALANCE {I=(F-G)+H} ___________
Ending Cash Balance(E) and Reconciled Bank Balance(I) should equal.
- -------------------------------------------------------------------
NX NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEET - UNAUDITED
AS OF JULY 31, 2002
ASSETS
------
JULY
CURRENT ASSETS
Cash and cash equivalents 2,790,751
Prepaids 88,302
Note Receivable
Other Receivable 1,341
------------
Total Current Assets 2,880,394
Other Assets
Deposits 15,493
------------
TOTAL ASSETS 2,895,886
============
LIABILITIES & STOCKHOLDER'S EQUITY
----------------------------------
POST-PETITION LIABILITIES:
Accounts Payable 112,935
Accrued Accounts Payable 290,455
Accrued liability for sub liquidation 338,031
Deferred Revenue --
Taxes Payable 2,047
------------
Total Post-Petition Liabilities 743,468
PRE-PETITION LIABILITIES:
Priority Claims 528,076
Secured Claims 558,735
Unsecured Claims 13,088,400
General pre-petition accruals 4,526,696
Total Pre-Petition Liabilities 18,701,908
------------
TOTAL LIABILITIES 19,445,376
============
STOCKHOLDERS' EQUITY:
Common Stock 2,430,230
Preferred Stock 7,025,008
APIC, net of filing fees 283,967,334
Deferred Compensation (2,347,751)
Accumulated (deficit)/income - Pre-petition (291,148,351)
Accumulated (deficit)/income-Post-petition PY (18,977,497)
Accumulated (deficit)/income-Post-petition CY (2,688,300)
Warrants 6,322,333
Notes Receivable from officer (1,000,000)
Cumulative Translation Adj (132,495)
Total Stockholders' equity (16,549,490)
------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 2,895,886
============
NX NETWORKS, INC.
MONTHLY OPERATING REPORT - UNAUDITED
INCOME STATEMENT
(BUSINESS DEBTOR, ACCRUAL BASIS)
CALENDAR MONTH JULY 1 TO JULY 31, 2002
JULY JUNE MAY APRIL MARCH FEBRUARY JANUARY
2002 2002 2002 2002 2002 2002 2002 YEAR TO DATE
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SALES:
Product Sales -- -- -- -- 15,455 667,347 271,214 954,016
Service Sales -- -- -- 27,372 189,849 335,546 552,766
-------------------------------------------------------------------------------------------------
-- -- -- -- 42,827 857,196 606,760 1,506,783
-------------------------------------------------------------------------------------------------
COST OF SALES:
Product Cost of Sales -
materials -- -- -- -- 10,652 282,705 127,713 421,069
Product Cost of Sales -
manufacturing overhead -- -- -- -- 5,364 31,046 69,947 106,357
Service Costs -- -- -- -- 46,987 92,630 95,581 235,197
-------------------------------------------------------------------------------------------------
-- -- -- -- 63,002 406,381 293,241 762,624
-------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------
GROSS MARGIN -- -- -- -- (20,175) 450,815 313,519 744,159
-------------------------------------------------------------------------------------------------
0.49
OPERATING EXPENSES:
- -------------------
OFFICER SALARIES (GROSS) -- -- 74,707 33,892 33,892 142,492
OTHER EMPLOYEES SALARIES (GROSS) 43,155 14,695 26,388 28,338 30,122 74,655 123,589 340,942
TAXES (PAYROLL: EMPLOYER'S SHARE) 1,712 494 2,982 2,516 9,959 8,749 16,403 42,815
EMPLOYEE BENEFITS (insurance,
pension etc) -- -- 7,500 7,500 15,000
TRAVEL & ENTERTAINMENT -- (1,520) -- (73) 558 11,754 3,895 14,614
TELEPHONE -- -- -- (6,462) 136 3,861 6,330 3,865
UTILITIES -- -- (2,500) 5,884 3,200 6,584
OFFICE SUPPLIES/STORAGE FEES 6,986 1,454 1,181 2,146 5,380 3,335 2,066 22,549
POSTAGE & DUPLICATION -- -- 31 32 1,354 3,087 169 4,672
OFFICE RENT -- -- 6,204 13,531 13,460 33,195
REPAIRS & MAINTENANCE -- -- 317 3,831 4,149
LEGAL 20,000 21,170 21,546 20,093 82,930 10,000 10,250 185,988
ACCOUNTING 2,350 -- 1,322 -- 141 3,813
MARKETING EXPENSE -- -- 354 325 325 1,004
TRANSFER AGENT FEE 1,274 1,273 2,667 1,275 -- 1,272 1,283 9,044
INSURANCE 19,964 19,964 19,888 18,506 33,155 33,460 33,480 178,417
BAD DEBT EXPENSE -- -- -- -- (400,000) (400,000)
SALES CONTRACTORS -- -- 1,387 4,913 4,913 11,213
CONSULTING 84,439 1,000 2,000 2,000 116,999 49,453 60,335 316,226
OTHER TAX (8) 3,074 1,684 5,390 12 7,171 17,322
OTHER EXPENSES 617 513 2,184 1,816 737 4,667 1,059 11,593
-------------------------------------------------------------------------------------------------
Total operating expense $ 180,490 $ 62,118 $ 80,550 $ 70,187 $ 368,191 $ 270,667 $ (66,706) $ 965,497
-------------------------------------------------------------------------------------------------
OPERATING INCOME/(LOSS)/EBITDA (180,490) (62,118) (80,550) (70,187) (388,367) 180,148 380,225 (221,338)
DEPRECIATION -- -- 1,629 51,526 54,725 107,881
GOODWILL AMORTIZATION -- -- -- 16,125 16,125 32,250
ESTIMATED LOSS ON FOREIGN
SUBS LIQUIDATION -- -- -- -- -- (37,443) -- (37,443)
-------------------------------------------------------------------------------------------------
-- -- -- -- 1,629 30,208 70,850 102,688
Other Income (Expenses)
Interest Expense -- -- -- -- -- --
Interest Income 316 -- -- -- 15 3 3 336
Other Income -- 887,763 -- -- 44,388 11,838 3,562 947,552
-------------------------------------------------------------------------------------------------
Total income and other
expense 316 887,763 -- -- 44,403 11,841 3,565 947,888
-------------------------------------------------------------------------------------------------
NET INCOME/(LOSS) FROM
OPERATIONS $ (180,174) $ 825,645 $ (80,550) $ (70,187) $ (345,593) $ 161,780 $ 312,940 $ 623,862
-------------------------------------------------------------------------------------------------
Gain (Loss) on sale of assets -- (12,861) -- -- (3,299,302) (3,312,163)
-------------------------------------------------------------------------------------------------
NET INCOME/(LOSS) $ (180,174) $ 812,784 $ (80,550) $ (70,187) $(3,644,894) $ 161,780 $ 312,940 $(2,688,300)
-------------------------------------------------------------------------------------------------
NX NETWORKS, INC.
CASH FLOW STATEMENT (SOURCES (USES) OF CASH) - UNAUDITED
PAYROLL AND TAX ACCOUNTS
(BUSINESS DEBTOR, ACCRUAL BASIS)
CALENDAR MONTH ENDING JULY 31, 2002
All figures refer to post-petition transactions
Net Income/(loss) (180,174)
Add expenses not requiring Cash:
Loss on sale of assets --
Depreciation --
Goodwill amortization --
---------
Other Sources (Uses) Cash:
Accounts receivable
Inventories
Other current assets 20,822
Deposits 310,028
Note Receivable --
Other Receivable 0
Goodwill
Accounts payable 74,332
Deferred revenue
Accrued liabilities 40,615
---------
total other souces (uses) of cash 445,797
Net decrease in cash and cash equivalents 265,623
Cash beginning 2,525,128
---------
Cash ending 2,790,751
NX NETWORKS, INC.
AGED POST PETITION ACCOUNTS RECEIVABLE
CALENDAR MONTH JULY 1 TO JULY 31, 2002
CUSTOMER NAME 0-30 31-60 60-90 90+ TOTAL
0 0 0 0 0
=====================================================
NX NETWORKS, INC.
AGED POST PETITION ACCOUNTS PAYABLE
CALENDAR MONTH JULY 1 TO JULY 31, 2002
VENDOR NO VENDOR NAME LESS THAN 30 OVER 30 OVER 60 OVER 90 TOTAL
60000191 Alex Yalen 137.50 -- -- -- 137.50
60002020 Allen & Gledhill -- 1,796.00 -- -- 1,796.00
60000062 JERRY CARTER 25,000.00 -- -- -- 25,000.00
60000193 David Parker 8,961.00 -- -- -- 8,961.00
60000026 EQUISERVE LP 1,273.87 -- -- -- 1,273.87
60000132 FRINGE BENEFIT ADMINISTRATOR 4,560.00 -- -- -- 4,560.00
60000182 KELLEY DRYE & WARREN LLP -- -- -- 1,477.99 1,477.99
60000182 KELLEY DRYE & WARREN LLP -- -- -- 103.50 103.50
60000182 KELLEY DRYE & WARREN LLP -- -- -- 20,299.91 20,299.91
60000182 KELLEY DRYE & WARREN LLP -- -- 7,492.98 -- 7,492.98
60000019 RICHARD YALEN 40,832.50 -- -- -- 40,832.50
60000019 RICHARD YALEN 1,000.00 -- -- -- 1,000.00
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TOTAL 81,764.87 1,796.00 7,492.98 21,881.40 112,935.25
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