Exhibit 99.2
UNITED STATES BANKRUPTCY COURT
FOR DISTRICT OF DELAWARE
In re Zany Brainy, Inc. Case No. 01-1749
- ----------------------- -------
Reporting Period: Fiscal January, 2002 (January 6, 2002 to February 2, 2002)
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 the case.
Document Explanation
REQUIRED DOCUMENTS Form No. Attached Attached
Schedule of Cash Receipts and Disbursements MOR-1 Yes No
Bank Reconciliation (or copies of debtor's bank reconciliations) MOR-1 (CON'T) Yes No
Copies of bank statements Yes No
Cash disbursements journals Yes No
Statement of Operations MOR-2 Yes No
Balance Sheet MOR-3 Yes No
Status of Postpetition Taxes MOR-4 Yes No
Copies of IRS Form 6123 or payment receipt No No
Copies of tax returns filed during reporting period No No
Summary of Unpaid Postpetition Debts MOR-4 Yes No
Listing of aged accounts payable Yes No
Accounts Receivable Reconciliation and Aging MOR-5 Yes No
Debtor Questionnaire MOR-5 Yes No
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and
the attached documents are true and correct to the best of my knowledge and
belief.
_______________________________________
Signature of Debtor Date
_______________________________________
Signature of Joint Debtor Date
_______________________________________
Signature of Authorized Individual* Date
John Reilly President
- ----------- ---------
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)
BANK ACCOUNTS CURRENT MONTH
OPER. PAYROLL TAX OTHER (1) OTHER (2) OTHER (3) ACTUAL PROJECTED
CASH BEGINNING OF MONTH $ 2,702.3 $ 2,702.3
RECEIPTS
CASH SALES -
ACCOUNTS RECEIVABLE -
LOANS AND ADVANCES -
SALE OF ASSETS -
Tax Refunds $ 68.5 68
From ZB Co, Inc -
TOTAL RECEIPTS $ 68.5 $ - $ - $ - $ - $ - $ 68
DISBURSEMENTS
NET PAYROLL -
PAYROLL TAXES -
SALES, USE, & OTHER TAXES $ 0.2 0
INVENTORY PURCHASES -
SECURED/ RENTAL/ LEASES -
INSURANCE $ 57.7 58
ADMINISTRATIVE $ 2.4 2
Bankruptcy Services $ 40.1 40
ZB Co., Inc -
-
OWNER DRAW * -
TRANSFERS (TO DIP ACCTS) -
TRANSFERS TO TRUST ACCT -
PROFESSIONAL FEES -
U.S. TRUSTEE QUARTERLY FEES -
COURT COSTS -
TOTAL DISBURSEMENTS $ 100.3 $ - $ - $ - $ - $ - 100
NET CASH FLOW ($31.8) $ - $ - $ - $ - $ - $ (32)
(RECEIPTS LESS DISBURSEMENTS)
CASH - END OF MONTH $2,670.5 $ - $ - $ - $ - $ - $ 2,670.5
* COMPENSATION TO SOLE PROPRIETORS FOR SERVICES RENDERED TO BANKRUPTCY ESTATE
THE FOLLOWING SECTION MUST BE COMPLETED
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH
ACTUAL COLUMN)
TOTAL DISBURSEMENTS
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow
accounts)
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES
In re Zany Brainy, Inc. Case No. 01-1749
----------------- -------
Debtor
Reporting Period: Fiscal January, 2002 (Janaury 6, 2002 to February 2, 2002)
BANK RECONCILIATIONS
Continuation Sheet for MOR-1
A bank reconciliation must be included for each bank
account. The debtor's bank reconciliation may be substituted for this page.
Operating Payroll Tax Other
# # # #
BALANCE PER BOOKS
BANK BALANCE
(*) DEPOSITS IN TRANSIT (ATTACH LIST)
(-) OUTSTANDING CHECKS (ATTACH LIST) SEE RECONCILIATIONS ATTACHED.
OTHER (ATTACH EXPLANATION)
ADJUSTED BANK BALANCE*
*Adjusted bank balance must equal
balance per books
DEPOSIT IN TRANSIT Date Amount Date Amount Date Amount Date Amount
CHECKS OUTSTANDING Ck.# Amount Ck.# Amount Ck.# Amount Ck.# Amount
OTHER
FORM MOR-1 (CON'T)
(9/99)
In re Zany Brainy, Inc. Case No. 01-1749
----------------- -------
Debtor
Reporting Period: Fiscal January, 2002 (January 6, 2002 to February 2, 2002)
STATEMENT OF OPERATIONS
(Income Statement)
(000s)
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
REVENUES Month Filing to Date
Gross Revenues $ 827.5 $ 88,506.7
Less: Returns and Allowances $ 0.0 ($ 5,076.7)
---------------------- ----------------
Net Revenue $ 827.5 $ 83,430.0
COST OF GOODS SOLD
Beginning Inventory $ 0.0 $105,333.3
Add: Purchases $ 0.0 $ 52,360.7
Add: Cost of Labor $ 0.0 $ 0.0
Add: Other Costs (attach schedule) $ 0.0 $ 0.0
Less: Ending Inventory $ 0.0 $104,755.7
---------------------- ----------------
Cost of Goods Sold $ 0.0 $ 52,938.4
---------------------- ----------------
Gross Profit $ 827.5 $ 30,491.6
OPERATING EXPENSES
Advertising $ 0.0 $ 5,003.1
Auto and Truck Expense $ 0.0 $ 0.0
Bad Debts $ 0.0 ($1.1)
Contributions $ 0.0 $ 0.0
Employee Benefits Programs $ 0.0 $ 1,961.1
Insider Compensation* $ 8.5 $ 257.3
Insurance & Insurance Consulting $ 57.7 $ 350.5
Management Fees/Bonuses $ 0.0 $ 73.4
Office Expense $ 0.0 $ 22.3
Pension & Profit-Sharing Plans $ 0.0 $ 0.0
Repairs and Maintenance $ 0.0 $ 905.4
Rent and Lease Expense $ 0.0 $ 13,515.8
Salaries/Commissions/Fees $ 0.0 $ 15,050.8
Supplies $ 0.4 $ 1,046.1
Taxes - Payroll $ 0.0 $ 1,144.6
Taxes - Real Estate $ 0.0 $ 1,720.1
Taxes - Other $ 0.2 $ 134.1
Travel and Entertainment $ 0.0 $ 477.5
Utilities $ 0.0 $ 2,222.3
Other (attach schedule) $ 0.0 $ 19,972.6
---------------------- ----------------
Total Operating Expenses Before Depreciation $ 66.8 $ 63,855.9
Depreciation/Depletion/Amortization $ 0.0 $ 4,833.0
---------------------- ----------------
Net Profit (Loss) Before Other Income & Expenses $ 760.7 ($ 38,197.3)
OTHER INCOME AND EXPENSES
Other Income (attach schedule) $ 0.0 $ 0.0
Interest Expense $ 0.0 $ 5,696.6
Other Expense (attach schedule) $ 42.0 $ 3,591.8
---------------------- ----------------
Net Profit (Loss) Before Reorganization Items $ 718.7 ($ 47,485.6)
REORGANIZATION ITEMS
Professional Fees $ 270.5 $ 4,561.6
U. S. Trustee Quarterly Fees $ 0.0 $ 11.3
Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet) $ 0.0 $ 0.0
Gain (Loss) from Sale of Equipment $ 0.0 $ 0.0
Other Reorganization Expenses (attach schedule) $ 0.0 $ 12.5
---------------------- ----------------
Total Reorganization Expenses $ 270.5 $ 4,585.4
Income Taxes $ 0.0 $ 0.0
---------------------- ----------------
Net Profit (Loss) $ 448.2 ($ 52,071.0)
====================== ================
*"Insider" is defined in 11 U.S.C. Section 101(31).
FORM MOR-2
(9/99)
In re Zany Brainy, Inc. Case No. 01-1749
-----------------
Debtor
Reporting Period: Fiscal January, 2002 (January 6, 2002 to February 2, 2002)
STATEMENT OF OPERATIONS - continuation sheet
(000s)
Cumulative
BREAKDOWN OF "OTHER" CATEGORY Month Filing to Date
Other Costs
Accounting Fees - $ 210.8
Armored Car Fees - 153.6
Bank Service Charges - 172.4
Budget Contingency - 5.2
Company Meetings and Functions - 41.0
Conferences & Conventions - 26.4
Consulting Fees - 52.0
Credit Card Fees - 1,163.1
Employee Relocation - 24.6
Freight/Postage/Shipping - 1,614.1
Inventory Fees - 119.7
Inventory Adjustments - $ 14,432.8
Legal Fees - 37.2
Miscellaneous - 1,567.8
Other - 65.6
Other Professional Fees - 60.4
Payroll Processing Fees - 79.2
Recruiting - 71.7
Temporary Services - 86.9
Unicap Adjustment/Other - (92.5)
Training - 4.2
---------------------- ----------------------
$0.00 $ 19,896.1
====================== ======================
Other Operational Expenses
Bankruptcy Services $40.1 $ 57.1
Stock Transfer Agent $ 1.1 $ 1.4
Financial Reporting $ 0.8 $ 0.8
---------------------- ----------------------
$42.0 $ 59.4
====================== ======================
Other Income
None
Other Expenses
Royalty Expense - $ 3,549.8
---------------------- ----------------------
- $ 3,549.8
====================== ======================
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 (CON'T)
(9/99)
In re Zany Brainy, Inc. Case No. 01-1749
----------------- -------
Debtor
Reporting Period: Fiscal January, 2002 (January 6, 2002 to February 2, 2002)
BALANCE SHEET
(000s)
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 ON
ASSETS CURRENT REPORTING MONTH PETITION DATE
CURRENT ASSETS
Unrestricted Cash and Equivalents $ 2,670.5 $ 1,676.0
Restricted Cash and Cash Equivalents (see continuation sheet) - 407.0
Accounts Receivable (Net) - 2,117.0
Notes Receivable 5,600.0 -
Inventories 1,600.0 98,650.4
Prepaid Expenses - 3,885.0
Professional Retainers - -
Other Current Assets (attach schedule) 5,434.0 -
----------------------- -----------------------
TOTAL CURRENT ASSETS $ 15,304.5 $ 106,735.4
PROPERTY AND EQUIPMENT
Real Property and Improvements - -
Machinery and Equipment - 36,010.7
Furniture, Fixtures and Office Equipment - 48,695.2
Leasehold Improvements - 38,014.0
Vehicles -
Less Accumulated Depreciation - (60,291.0)
----------------------- -----------------------
TOTAL PROPERTY & EQUIPMENT $ - $ 62,428.9
OTHER ASSETS
Loans to Insiders* - -
Other Assets (attach schedule) - 1,391.0
----------------------- -----------------------
TOTAL OTHER ASSETS $ - $ 1,391.0
TOTAL ASSETS $ 15,304.5 $ 170,555.3
======================= =======================
BOOK VALUE AT END OF BOOK VALUE ON
LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE
LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition)
Accounts Payable - -
Taxes Payable (refer to FORM MOR-4) - -
Wages Payable 27.5 -
Notes Payable - -
Rent / Leases - Building/Equipment - -
Secured Debt / Adequate Protection Payments - -
Professional Fees 666.1 -
Amounts Due to Insiders* - -
Other Postpetition Liabilities (attach schedule) - -
----------------------- -----------------------
TOTAL POSTPETITION LIABILITIES $ 693.6 $ -
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Secured Debt - 46,404.0
Priority Debt - 953.0
Unsecured Debt 246,295.2 253,801.0
----------------------- -----------------------
TOTAL PRE-PETITION LIABILITIES $ 246,295.2 $ 301,158.0
TOTAL LIABILITIES $ 246,988.8 $ 301,158.0
OWNER EQUITY
Capital Stock 323.1 323.0
Additional Paid-In Capital 145,336.3 145,336.3
Partners' Capital Account - -
Owner's Equity Account - -
Retained Earnings - Pre-Petition (96,741.9) (101,365.0)
Retained Earnings - Postpetition (52,071.0) -
Adjustments to Owner Equity (attach schedule) (228,530.8) (174,897.0)
Postpetition Contributions (Distributions) (Draws) (attach schedule) - -
----------------------- -----------------------
NET OWNER EQUITY $ (231,684.2) $ (130,602.7)
TOTAL LIABILITIES AND OWNERS' EQUITY $ 15,304.6 $ 170,555.3
======================= =======================
FORM MOR-3
*"Insider" is defined in 11 U.S.C. Section 101(31). (9/99)
$ 0.0
In re Zany Brainy, Inc. Case No. 01-1749
----------------- -------
Debtor
Reporting Period: Fiscal January, 2002 (January 6, 2002 to February 2, 2002)
BALANCE SHEET - continuation sheet
(000s)
BOOK VALUE AT END OF BOOK VALUE ON
ASSETS CURRENT REPORTING MONTH PETITION DATE
Other Current Assets
None
Other Assets
1,100,000 shares RTST stock $ 5,434.0 $ 292.0
1,099.0
----------------------- -----------------------
Total Other Assets $ 5,434.0 $ 1,391.0
======================= =======================
BOOK VALUE AT END OF BOOK VALUE ON
LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE
Other Postpetition Liabilities
Accrued Sales tax $ - $ -
Accrued Restructuring - -
Accrued Hilco Financing Fees - -
Accrued A/P Expense - -
Due to ZB, Co Inc - -
Due to ZB, Co Inc - From Congress Bank - -
Due to Children's Development, Inc. - -
-----------------------
$ - $ -
======================= =======================
Adjustments to Owner Equity
Intercompany adjustments to equity for Children's Product, Inc $ 182,556.8 $ 174,897.0
and Children's Development, Inc.
Adjustment per The Right Start Transaction 45,974.0
----------------------- -----------------------
$ 228,530.8 $ 174,897.0
======================= =======================
Postpetition Contributions (Distributions) (Draws)
None
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 (CON'T)
(9/99)
In re Zany Brainy, Inc. Case No. 01-1749
----------------- -------
Debtor
Reporting Period: Fiscal January, 2002 (January 6, 2002 to February 2, 2002)
STATUS OF POSTPETITION TAXES
(000s)
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.
Beginning Amount Ending
Tax Withheld or Amount Date Check No. Tax
Liability Accrued Paid Paid or EFT Liability
Federal
Withholding $ - $ - $ - $ -
FICA-Employee - - - -
FICA-Employer - - - -
Unemployment - - - -
Income - - - -
Other: - - - -
------------------------------------ ----------
Total Federal Taxes $ - $ - $ - $ -
State and Local
Withholding $ - $ - $ - $ -
Sales - - - -
Excise - - - -
Unemployment - - - -
Real Property - - - -
Personal Property - - - -
Other: NJ Private Disability, NY State Disability, and OPT. - - - -
----------------------------------------------------
Total State and Local $ - $ - $ - $ -
------------------------------------ ----------
Total Taxes $ - $ - $ - $ -
SUMMARY OF UNPAID POSTPETITION DEBTS
(in 000s)
Attach aged listing of accounts payable.
Number of Days Past Due
Current 0-30 31-60 61-90 Over 90 Total
Accounts Payable $ - $ - $ - $ - $ - $ -
Wages Payable - - - - - -
Taxes Payable - - - - - -
Rent/Leases-Building - - - - - -
Rent/Leases-Equipment - - - - - -
Secured Debt/Adequate Protection Payments - - - - - -
Professional Fees - - - - - -
Amounts Due to Insiders* - - - - - -
Other: See listing at MOR 3 - - - - - -
Other:__________________________ - - - - - -
----------------------------------------------------------------------
Total Postpetition Debts $ - $ - $ - $ - $ - $ -
Explain how and when the Debtor intends to pay any past-due postpetition debts.
*"Insider" is defined in 11 U.S.C. Section 101(31). FORM MOR-4
(9/99)
In re Zany Brainy, Inc. Case No. 01-1749
----------------- -------
Debtor
Reporting Period: Fiscal January, 2002 (January 6, 2002 to February 2, 2002)
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
(000s)
A/R were purchased by The Right Start during the period
Accounts Receivable Reconciliation Amount
Total Accounts Receivable at the beginning of the reporting period $ 8,300.0
+ Amounts billed during the period -
- - Amounts collected during the period 2,700.0
---------
Total Accounts Receivable at the end of the reporting period $ 5,600.0
=========
Accounts Receivable Aging Amount
0 - 30 days old $ -
31 - 60 days old -
61 - 90 days old 5,600.0
91+ days old -
---------
Total Accounts Receivable 5,600.0
Amount considered uncollectible (Bad Debt) -
---------
Accounts Receivable (Net) $ 5,600.0
=========
DEBTOR QUESTIONNAIRE
Must be completed each month Yes No
1. Have any assets been sold or transferred outside the normal course of business X
this reporting period? If yes, provide an explanation below.
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
FORM MOR-5
(9/99)
Zany Brainy, Inc., et al
Case # 01-1744 - #01-1749
Schedule of Disbursements
January, 2002
Checks
- ------
Date Check # Amount Payee
---- ------- ------ -----
1/10/2002 1031 $ 72.71 John Reilly
1/10/2002 1032 $ 79.47 Staples
1/17/2002 1033 $ 161.05 John Reilly
1/22/2002 1034 $54,359.00 AON Insurance
1/22/2002 1035 $ 1,796.00 AON Insurance
1/23/2002 1036 $ 114.12 Aspen Publishers
1/23/2002 1037 $ 1,500.00 United Insurance
1/23/2002 1038 $ 1,085.00 StockTrans
1/23/2002 1039 $ 830.20 RR Donnelley
1/23/2002 1040 $ 58.00 AON Insurance
1/25/2002 1041 $ 16.54 Michael's Deli
Wire Transfers
--------------
Date Amount Payee
---- ------ -----
1/3/2002 $ 2,005.87 ADP Payroll Tax Services
1/3/2002 $ 2,291.13 ADP Payroll Tax Services
1/25/2002 $10,050.00 Bankruptcy Services, Inc
-----------
Total All Disbursements $74,419.09
===========
UNITED STATES BANKRUPTCY COURT
FOR DISTRICT OF DELAWARE
In re Children's Product, Inc. Case No. 01-1747
------------------------
Reporting Period: Fiscal January, 2002 (January 6, 2002 to February 2, 2002)
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 the case.
Document Explanation
REQUIRED DOCUMENTS Form No. Attached Attached
Schedule of Cash Receipts and Disbursements MOR-1 No No
Bank Reconciliation (or copies of debtor's bank reconciliations) MOR-1 (CON'T) No No
Copies of bank statements No No
Cash disbursements journals No No
Statement of Operations MOR-2 No No
Balance Sheet MOR-3 Yes No
Status of Postpetition Taxes MOR-4 No No
Copies of IRS Form 6123 or payment receipt No No
Copies of tax returns filed during reporting period No No
Summary of Unpaid Postpetition Debts MOR-4 No No
Listing of aged accounts payable No No
Accounts Receivable Reconciliation and Aging MOR-5 No No
Debtor Questionnaire MOR-5 No No
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and
the attached documents are true and correct to the best of my knowledge and
belief.
__________________________________________
Signature of Debtor Date
__________________________________________
Signature of Joint Debtor Date
__________________________________________
Signature of Authorized Individual* Date
John Reilly President
- ----------- ---------
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)
In re Children's Product, Inc. Case No. 01-1747
------------------------ -------
Debtor
Reporting Period: Fiscal January, 2002 (January 6, 2002 to February 2, 2002)
BANK RECONCILIATIONS
Continuation Sheet for MOR-1
A bank reconciliation must be included for each bank account.
The debtor's bank reconciliation may be substituted for this page.
Operating Payroll Tax Other
# # # #
BALANCE PER BOOKS
BANK BALANCE
(+) DEPOSITS IN TRANSIT (ATTACH LIST)
(-) OUTSTANDING CHECKS (ATTACH LIST) SEE RECONCILIATIONS ATTACHED.
OTHER (ATTACH EXPLANATION)
ADJUSTED BANK BALANCE *
* Adjusted bank balance must equal
balance per books
DEPOSITS IN TRANSIT Date Amount Date Amount Date Amount Date Amount
-------------------------------------------------------------------------------------------
In connection with the Transportation, substabtially all of the assets, including cash, was
transferred to The Right Start, Inc. on September 6, 2001
-------------------------------------------------------------------------------------------
CHECKS OUTSTANDING Ck. # Amount Ch. # Amount Ck. # Amount Ck. # Amount
OTHER
FORM MOR-1 (CON'T)
(9/99)
In re Children's Product, Inc. Case No. 01-1747
------------------------ -------
Debtor
Reporting Period: Fiscal January, 2002 (January 6, 2002 to February 2, 2002)
STATEMENT OF OPERATIONS
(Income Statement)
(000s)
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
REVENUES Month Filing to Date
Gross Revenues $ - $ 3,227.1
Less: Returns and Allowances - -
------------- -------------
Net Revenue $ - $ 3,227.1
COST OF GOODS SOLD
Beginning Inventory - -
Add: Purchases - -
Add: Cost of Labor - -
Add: Other Costs (attach schedule) - -
Less: Ending Inventory - -
Cost of Goods Sold - -
------------- -------------
Gross Profit $ - $ 3,227.1
OPERATING EXPENSES
Advertising - -
Auto and Truck Expense - -
Bad Debts - -
Contributions - -
Employee Benefits Programs - -
Insider Compensation* - -
Insurance - -
Management Fees/Bonuses - -
Office Expense - -
Pension & Profit-Sharing Plans - -
Repairs and Maintenance - -
Rent and Lease Expense - -
Salaries/Commissions/Fees - -
Supplies - -
Taxes - Payroll - -
Taxes - Real Estate - -
Taxes - Other - -
Travel and Entertainment - -
Utilities - -
Other (attach schedule) - 2.8
------------- -------------
Total Operating Expenses Before Depreciation - 2.8
Depreciation/Depletion/Amortization
------------- -------------
Net Profit (Loss) Before Other Income & Expenses $ - $ 3,224.3
OTHER INCOME AND EXPENSES
Other Income (attach schedule) - -
Interest Expense - -
Other Expense (attach schedule) - -
------------- -------------
Net Profit (Loss) Before Reorganization Items $ - $ 3,224.3
REORGANIZATION ITEMS
Professional Fees - -
U. S. Trustee Quarterly Fees - -
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 - -
Income Taxes - -
------------- -------------
Net Profit (Loss) $ - $ 3,224.3
============= =============
*"Insider" is defined in 11 U.S.C. Section 101(31).
FORM MOR-2
(9/99)
In re Children's Product, Inc. Case No. 01-1747
------------------------ -------
Debtor
Reporting Period: Fiscal January, 2002 (January 6, 2002 to February 2, 2002)
BALANCE SHEET
(000s)
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 ON
ASSETS CURRENT REPORTING MONTH PETITION DATE
CURRENT ASSETS
Unrestricted Cash and Equivalents $ - $ 5.5
Restricted Cash and Cash Equivalents (see continuation sheet) -
Accounts Receivable (Net) 22,964.0 19,737.0
Notes Receivable 138,129.0 138,129.0
Inventories -
Prepaid Expenses -
Professional Retainers -
Other Current Assets (attach schedule) -
------------- -------------
TOTAL CURRENT ASSETS $ 161,093.0 $ 157,871.5
PROPERTY AND EQUIPMENT
Real Property and Improvements
Machinery and Equipment
Furniture, Fixtures and Office Equipment
Leasehold Improvements
Vehicles
Less Accumulated Depreciation
------------- -------------
TOTAL PROPERTY & EQUIPMENT $ - $ -
OTHER ASSETS
Loans to Insiders*
Other Assets (attach schedule)
------------- -------------
TOTAL OTHER ASSETS $ - $ -
TOTAL ASSETS $ 161,093.0 $ 157,871.5
============= =============
BOOK VALUE AT END OF BOOK VALUE ON
LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE
LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition)
Accounts Payable - -
Taxes Payable (refer to FORM MOR-4) - -
Wages Payable - -
Notes Payable - -
Rent / Leases - Building/Equipment - -
Secured Debt / Adequate Protection Payments - -
Professional Fees - -
Amounts Due to Insiders* - -
Other Postpetition Liabilities (attach schedule) - -
------------- -------------
TOTAL POSTPETITION LIABILITIES $ - $ -
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Secured Debt - -
Priority Debt - -
Unsecured Debt - -
------------- -------------
TOTAL PRE-PETITION LIABILITIES $ - $ -
TOTAL LIABILITIES $ - $ -
OWNER EQUITY
Capital Stock - -
Additional Paid-In Capital 106,817.7 106,817.7
Partners' Capital Account - -
Owner's Equity Account - -
Retained Earnings - Pre-Petition 51,053.8 51,053.8
Retained Earnings - Postpetition 3,221.5 -
Adjustments to Owner Equity (attach schedule) - -
Postpetition Contributions (Distributions) (Draws) (attach schedule) - -
------------- -------------
NET OWNER EQUITY $ 161,093.0 $ 157,871.5
TOTAL LIABILITIES AND OWNERS' EQUITY $ 161,093.0 $ 157,871.5
============= =============
FORM MOR-3
*"Insider" is defined in 11 U.S.C. Section 101(31). (9/99)
UNITED STATES BANKRUPTCY COURT
FOR DISTRICT OF DELAWARE
In re Children's Development, Inc. Case No. 01-1748
---------------------------- -------
Reporting Period: Fiscal January, 2002 (January 6, 2002 to February 2, 2002)
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 the case.
Document Explanation
REQUIRED DOCUMENTS Form No. Attached Attached
Schedule of Cash Receipts and Disbursements MOR-1 No No
Bank Reconciliation (or copies of debtor's bank reconciliations) MOR-1 (CON'T) No No
Copies of bank statements No No
Cash disbursements journals No No
Statement of Operations MOR-2 No No
Balance Sheet MOR-3 Yes No
Status of Postpetition Taxes MOR-4 No No
Copies of IRS Form 6123 or payment receipt No No
Copies of tax returns filed during reporting period No No
Summary of Unpaid Postpetition Debts MOR-4 No No
Listing of aged accounts payable No No
Accounts Receivable Reconciliation and Aging MOR-5 No No
Debtor Questionnaire MOR-5 No No
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and
the attached documents are true and correct to the best of my knowledge and
belief.
_______________________________________
Signature of Debtor Date
_______________________________________
Signature of Joint Debtor Date
_______________________________________
Signature of Authorized Individual* Date
John Reilly President
- ----------- ---------
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)
In re Children's Development, Inc. Case No. 01-1748
---------------------------- -------
Debtor Reporting Period: Fiscal January, 2002 (January 6, 2002 to February 2,
2002)
BANK RECONCILIATIONS
Continuation Sheet for MOR-1
A bank reconciliation must be included for each bank account.
The debtor's bank reconciliation may be substituted for this page.
Operating Payroll Tax Other
# # # #
BALANCE PER BOOKS
BANK BALANCE
(+) DEPOSITS IN TRANSIT (ATTACH LIST)
(-) OUTSTANDING CHECKS (ATTACH LIST) SEE RECONCILIATIONS ATTACHED.
OTHER (ATTACH EXPLANATION)
ADJUSTED BANK BALANCE *
* Adjusted bank balance must equal
balance per books
DEPOSITS IN TRANSIT Date Amount Date Amount Date Amount Date Amount
- --------------------------------------------------------------------------------
In connection with the Transaction, substantially all of the assets,
including cash, was transferred to The Right Start, Inc. on September 6, 2001
- --------------------------------------------------------------------------------
CHECKS OUTSTANDING Ck. # Amount Ch. # Amount Ck. # Amount Ck. # Amount
OTHER
FORM MOR-1 (CON'T)
(9/99)
In re Children's Development, Inc. Case No. 01-1748
---------------------------- -------
Debtor
Reporting Period: Fiscal January, 2002 (January 6, 2002 to February 2, 2002)
STATEMENT OF OPERATIONS
(Income Statement)
(000s)
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
REVENUES Month Filing to Date
Gross Revenues $ - $ 3,549.8
Less: Returns and Allowances
----------- -----------
Net Revenue $ - $ 3,549.8
COST OF GOODS SOLD
Beginning Inventory
Add: Purchases
Add: Cost of Labor
Add: Other Costs (attach schedule)
Less: Ending Inventory
Cost of Goods Sold
----------- -----------
Gross Profit $ - $ 3,549.8
OPERATING EXPENSES
Advertising
Auto and Truck Expense
Bad Debts
Contributions
Employee Benefits Programs
Insider Compensation*
Insurance
Management Fees/Bonuses
Office Expense
Pension & Profit-Sharing Plans
Repairs and Maintenance
Rent and Lease Expense 1.0
Salaries/Commissions/Fees 0.7
Supplies
Taxes - Payroll
Taxes - Real Estate
Taxes - Other
Travel and Entertainment
Utilities
Other (attach schedule) - 2.8
----------- -----------
Total Operating Expenses Before Depreciation - 4.5
Depreciation/Depletion/Amortization - 13.8
----------- -----------
Net Profit (Loss) Before Other Income & Expenses $ - $ 3,531.5
OTHER INCOME AND EXPENSES
Other Income (attach schedule)
Interest Expense
Other Expense (attach schedule)
----------- -----------
Net Profit (Loss) Before Reorganization Items $ - $ 3,531.5
REORGANIZATION ITEMS
Professional Fees
U. S. Trustee Quarterly Fees
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
Income Taxes
----------- -----------
Net Profit (Loss) $ - $ 3,531.5
=========== ===========
*"Insider" is defined in 11 U.S.C. Section 101(31).
FORM MOR-2
(9/99)
In re Children's Development, Inc.
----------------------------
Debtor Case No. 01-1748
-------
Reporting Period: Fiscal January, 2002 (January 6, 2002 to February 2, 2002)
BALANCE SHEET
(000s)
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 ON
ASSETS CURRENT REPORTING MONTH PETITION DATE
CURRENT ASSETS
Unrestricted Cash and Equivalents $ 6.5
Restricted Cash and Cash Equivalents (see continuation sheet) - -
Accounts Receivable (Net) 21,463.8 17,914.0
Notes Receivable - -
Inventories - -
Prepaid Expenses - -
Professional Retainers - -
Other Current Assets (attach schedule) - -
----------------------- -----------------
TOTAL CURRENT ASSETS $ 21,463.8 $ 17,920.5
PROPERTY AND EQUIPMENT
Real Property and Improvements - -
Machinery and Equipment - -
Furniture, Fixtures and Office Equipment - -
Leasehold Improvements - -
Vehicles - -
Less Accumulated Depreciation - -
----------------------- -----------------
TOTAL PROPERTY & EQUIPMENT $ - $ -
OTHER ASSETS
Loans to Insiders* - -
Other Assets (attach schedule) - 170.0
----------------------- -----------------
TOTAL OTHER ASSETS $ - $ 170.0
TOTAL ASSETS $ 21,463.8 $ 18,090.5
======================= =================
BOOK VALUE AT END OF BOOK VALUE ON
LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE
LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition)
Accounts Payable - -
Taxes Payable (refer to FORM MOR-4) - -
Wages Payable - -
Notes Payable - -
Rent / Leases - Building/Equipment - -
Secured Debt / Adequate Protection Payments - -
Professional Fees - -
Amounts Due to Insiders* - -
Other Postpetition Liabilities (attach schedule) - -
----------------------- -----------------
TOTAL POSTPETITION LIABILITIES $ - $ -
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Secured Debt - -
Priority Debt - -
Unsecured Debt - -
----------------------- -----------------
TOTAL PRE-PETITION LIABILITIES $ - $ -
TOTAL LIABILITIES $ - $ -
OWNER EQUITY
Capital Stock - -
Additional Paid-In Capital 5.0 5.0
Partners' Capital Account - -
Owner's Equity Account - -
Retained Earnings - Pre-Petition 18,085.5 18,085.5
Retained Earnings - Postpetition 3,373.3 -
Adjustments to Owner Equity (attach schedule) - -
Postpetition Contributions (Distributions) (Draws) (attach schedule) - -
----------------------- -----------------
NET OWNER EQUITY $ 21,463.8 $ 18,090.5
TOTAL LIABILITIES AND OWNERS' EQUITY $ 21,463.8 $ 18,090.5
======================= =================
*"Insider" is defined in 11 U.S.C. Section 101(31). FROM MOR-3
(9/99)
UNITED STATES BANKRUPTCY COURT
FOR DISTRICT OF DELAWARE
In re Noodle Kidoodle d/b/a Zany Brainy, Inc. Case No. 01-1744
--------------------------------------- -------
Reporting Period: Fiscal January, 2002 (January 6, 2002 to February 2, 2002)
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 the case.
Document Explanation
REQUIRED DOCUMENTS Form No. Attached Attached
Schedule of Cash Receipts and Disbursements MOR-1 No No
Bank Reconciliation (or copies of debtor's bank reconciliations) MOR-1 (CON'T) No No
Copies of bank statements No No
Cash disbursements journals No No
Statement of Operations MOR-2 No No
Balance Sheet MOR-3 No No
Status of Postpetition Taxes MOR-4 No No
Copies of IRS Form 6123 or payment receipt No No
Copies of tax returns filed during reporting period No No
Summary of Unpaid Postpetition Debts MOR-4 No No
Listing of aged accounts payable No No
Accounts Receivable Reconciliation and Aging MOR-5 No No
Debtor Questionnaire MOR-5 No No
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and
the attached documents are true and correct to the best of my knowledge and
belief.
_____________________________________
Signature of Debtor Date
_____________________________________
Signature of Joint Debtor Date
_____________________________________
Signature of Authorized Individual* Date
John Reilly President
- ----------- ---------
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)
UNITED STATES BANKRUPTCY COURT
FOR DISTRICT OF DELAWARE
In re Children's Distribution, LLC Case No. 01-1746
---------------------------- -------
Reporting Period: Fiscal January, 2002 (January 6, 2002 to February 2, 2002)
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 the case.
Document Explanation
REQUIRED DOCUMENTS Form No. Attached Attached
Schedule of Cash Receipts and Disbursements MOR-1 No No
Bank Reconciliation (or copies of debtor's bank reconciliations) MOR-1 (CON'T) No No
Copies of bank statements No No
Cash disbursements journals No No
Statement of Operations MOR-2 No No
Balance Sheet MOR-3 No No
Status of Postpetition Taxes MOR-4 No No
Copies of IRS Form 6123 or payment receipt No No
Copies of tax returns filed during reporting period No No
Summary of Unpaid Postpetition Debts MOR-4 No No
Listing of aged accounts payable No No
Accounts Receivable Reconciliation and Aging MOR-5 No No
Debtor Questionnaire MOR-5 No No
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and
the attached documents are true and correct to the best of my knowledge and
belief.
_______________________________________
Signature of Debtor Date
_______________________________________
Signature of Joint Debtor Date
_______________________________________
Signature of Authorized Individual* Date
John Reilly President
- ----------- ---------
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)
UNITED STATES BANKRUPTCY COURT
FOR DISTRICT OF DELAWARE
In re Zany Brainy Direct LLC Case No. 01-1745
---------------------- -------
Reporting Period: Fiscal January, 2002 (January 6, 2002 to February 2, 2002)
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 the case.
Document Explanation
REQUIRED DOCUMENTS Form No. Attached Attached
Schedule of Cash Receipts and Disbursements MOR-1 No No
Bank Reconciliation (or copies of debtor's bank reconciliations) MOR-1 (CON'T) No No
Copies of bank statements No No
Cash disbursements journals No No
Statement of Operations MOR-2 No No
Balance Sheet MOR-3 No No
Status of Postpetition Taxes MOR-4 No No
Copies of IRS Form 6123 or payment receipt No No
Copies of tax returns filed during reporting period No No
Summary of Unpaid Postpetition Debts MOR-4 No No
Listing of aged accounts payable No No
Accounts Receivable Reconciliation and Aging MOR-5 No No
Debtor Questionnaire MOR-5 No No
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and
the attached documents are true and correct to the best of my knowledge and
belief.
_________________________________________
Signature of Debtor Date
_________________________________________
Signature of Joint Debtor Date
_________________________________________
Signature of Authorized Individual* Date
John Reilly President
- ----------- ---------
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)