MONTHLY OPERATING REPORT
Calendar Month November 1, 2001 to November 30, 2001
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: 29
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 [ ] No [X] Not Applicable [ ]
6. PRE-PETITION ACCOUNTS RECEIVABLE:
Beginning Balance $ 3,450,447
Collected this Period $ 613,444
Ending Balance $ 2,837,003
7. POST-PETITION ACCOUNTS RECEIVABLE:
0-30 Days: $417,002 31-60 Days: $-0- Over 60 Days: $-0-
If there are any post-petition Accounts Receivable over 60 days, pro
vide schedule AR giving a listing of such accounts and explain the
delinquencies.
8. POST-PETITION ACCOUNTS PAYABLE:
0-30 Days: $253,589 31-60 Days: $ Over 60 Days: $
------- ---------
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 [ ] No [X] 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 [ ] No [X]. If no,
explain: Payroll taxes were deposit to the payroll account during this
period. Going forward payroll taxes will be deposited into the tax
account.
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 3/11/02 Liability 3/11/02
Fire Workers Comp. 3/11/02
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 [X] 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 con
trol 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 [ ] No [X] Explain:
15. PAYMENTS TO SECURED CREDITORS during reporting period:
(Attach additional sheets, if necessary.)
Creditor Freq. of Payments Amount of Next Post Petition Payments
Per Contract each Payment Not Made
(mo, qtr) Payment Due Mo. 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 $4,242.42
17. QUARTERLY U.S. TRUSTEE FEES paid during reporting period: $ None
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: DEBTOR-IN-POSSESSION
Name/Title: Richard Yalen By: /s/ Richard Yalen
-------------------------
Address: 13595 Dulles Technology Drive
Herndon, VA 20171
Phone: 703-793-1073
POST PETITION ACCOUNTS PAYABLE AGING
as of 11/30/01
VENDOR # VENDOR LESS THAN 30 OVER 30 OVER 60 OVER 90 TOTAL
60000009 ADP, INC 250.56 0 0 0 250.56
60000007 ASPEN PUBLISHERS, INC 113.04 0 0 0 113.04
60000010 AT&T - 054 331 3299 001 25.90 0 0 0 25.90
60000025 BEERS & CUTLER 2,323.00 0 0 0 2,323.00
60000008 BENICOR ASSOCIATES, INC 906.96 0 0 0 906.96
60000059 CAPITOL UNDERWRITERS, LTD 13,042.00 0 0 0 13,042.00
60000062 JERRY CARTER 805.26 0 0 0 805.26
60000030 CHUBB GROUP OF INSURANCE 19,173.18 0 0 0 19,173.18
60000031 CINGULAR WIRELESS -9191299 35.71 0 0 0 35.71
60000058 CSC - 5155538 265.00 0 0 0 265.00
60000018 DOMINION VIRGINIA POWER 8,737.58 0 0 0 8,737.58
60000065 EAGLE LEASING COMPANY 157.50 0 0 0 157.50
60000014 EARTHLINK - 2372441-9 111.75 0 0 0 111.75
60000026 EQUISERVE LP 1,285.51 0 0 0 1,285.51
60000061 FEDERAL EXPRESS - 00213028 16.43 0 0 0 16.43
60000017 FEDERAL EXPRESS - 10467839 66.98 0 0 0 66.98
60000001 FEDERAL EXPRESS - 23898926 1,349.92 0 0 0 1,349.92
60000015 FEDERAL EXPRESS - 23898946 12.84 0 0 0 12.84
60000042 FILTERFRESH 73.15 0 0 0 73.15
60000036 SUSAN GAYLE 220.00 0 0 0 220.00
60000068 IRON MOUNTAIN 276.00 0 0 0 276.00
60000044 KASTLE SYSTEMS 743.22 0 0 0 743.22
60000047 WEI WEI LEE 47.43 0 0 0 47.43
60000053 MCI - 1N070476 25.88 0 0 0 25.88
60000055 MCI - 1N143231 12.56 0 0 0 12.56
60000054 MCI - 1P249500 7.57 0 0 0 7.57
60000056 MCI - 1P723190 9.24 0 0 0 9.24
60000049 MENNINGERCARE SYSTEMS, INC 211.20 0 0 0 211.20
60000051 OCEANAIR 121.95 0 0 0 121.95
60000067 PAXTON RECORD RETENTION IN 609.50 0 0 0 609.50
60000013 PAXTON VAN LINES, INC 3,000.00 0 0 0 3,000.00
60000063 ROB PAYNE 55.78 0 0 0 55.78
60000037 PROVIDENT MUTUAL LIFE INS 9,384.30 0 0 0 9,384.30
60000032 REAL ESTATE INVESTMENT
MGR 91,941.82 0 0 0 91,941.82
60000038 SUNLIFE OF CANADA 1,817.53 0 0 0 1,817.53
60000048 TRIGON 64,000.00 0 0 0 64,000.00
60000066 UNDERWRITERS LABORATORIES 193.00 0 0 0 193.00
60000035 UPS - 050488 1,613.91 0 0 0 1,613.91
60000033 UPS - 231367 86.79 0 0 0 86.79
60000034 UPS - 9W712 16.00 0 0 0 16.00
60000003 VERIZON - 00073643301622Y 153.68 0 0 0 153.68
60000057 VERIZON - 508 703899981600 246.91 0 0 0 246.91
60000011 VERIZON - 5086164433 06500 91.00 0 0 0 91.00
60000050 VERIZON - 703 7934921 6401 295.03 0 0 0 295.03
60000052 VERIZON - 703.7931142 6657 385.59 0 0 0 385.59
60000043 BRENT WILSON 4,800.00 0 0 0 4,800.00
60000012 WORLDCOM - 102018 34.87 0 0 0 34.87
60000002 WORLDCOM - 90067606 7,721.99 0 0 0 7,721.99
60000060 WORLDCOM - 99148090 2,170.27 0 0 0 2,170.27
60000046 WORLDCOM - U05207 3,229.50 0 0 0 3,229.50
60000045 WORLDCOM - XU31439 1,295.00 0 0 0 1,295.00
60000019 RICHARD YALEN 10,019.57 0 0 0 10,019.57
TOTALS 253,589.36 253,589.36
POST PETITION ACCOUNTS RECEIVABLE AGING
as of 11/30/01
Cust ID Customer Name 0 1-30 31-60 61-90 91-120+ Total
00008734 ALCATEL CIT 6,891.00 0.00 0.00 0.00 0.00 6,891.00
00004006 ALCATEL e-BUSINESS 15,932.73 0.00 0.00 0.00 0.00 15,932.73
00004007 ALCATEL TELECOM LIMITED 22,000.00 0.00 0.00 0.00 0.00 22,000.00
00008933 A-SR 0.00 1,463.31 0.00 0.00 0.00 1,463.31
00002169 AURORA TECHNOLOGIES LTD 1,350.90 0.00 0.00 0.00 0.00 1,350.90
00004040 CHIQUITA BRANDS INC. 15,447.96 0.00 0.00 0.00 0.00 15,447.96
00004042 COHERENT LASER GROUP 2,924.82 0.00 0.00 0.00 0.00 2,924.82
00004073 EUROPEAN SPACE AGENCY 890.70 0.00 0.00 0.00 0.00 890.70
00006976 THE FALLON CLINIC 150.00 0.00 0.00 0.00 0.00 150.00
00004080 FRITZ COMPANIES INC 13,892.84 0.00 0.00 0.00 0.00 13,892.84
00008319 GZS 5,824.35 0.00 0.00 0.00 0.00 5,824.35
00004099 HITRON TECHNOLOGY INC 5,940.00 0.00 0.00 0.00 0.00 5,940.00
00004100 HITRON TECHNOLOGY INC. 8,399.22 0.00 0.00 0.00 0.00 8,399.22
00008981 IMV PROJECTS 0.00 286.00 0.00 0.00 0.00 286.00
00004108 INFORMSVIAZ 0.00 (117,194.00) 0.00 0.00 0.00 (117,194.00)
00004108 INFORMSVIAZ 11,197.98 0.00 0.00 0.00 0.00 11,197.98
00004274 IO DIS TICARET KOLLEKTIF(80,900.50) 0.00 0.00 0.00 0.00 (80,900.50)
00007272 KODAK / IBM GLOBAL SVC 900.00 0.00 0.00 0.00 0.00 900.00
00004273 LOGICAL NETWORKS
(EX ANITE) 27,486.90 0.00 0.00 0.00 0.00 27,486.90
00004272 LUCENT TECHNOLOGIES 99,999.99 0.00 0.00 0.00 0.00 99,999.99
00000226 MBG/ELEKTRONIK AB 1,744.00 0.00 0.00 0.00 0.00 1,744.00
00006567 NATIONAL WATER COMMISSION 0.00 23,607.93 0.00 0.00 0.00 23,607.93
00008969 NETCALL 875.00 0.00 0.00 0.00 0.00 875.00
00004210 NULINK INC 800.00 0.00 0.00 0.00 0.00 800.00
00004160 OMNES 27,485.16 0.00 0.00 0.00 0.00 27,485.16
00004156 OMNES LTD 11,007.29 0.00 0.00 0.00 0.00 11,007.29
00008689 QXTEL LIMITED 1,920.00 0.00 0.00 0.00 0.00 1,920.00
00007678 ROCKBRIDGE GLOBAL VILLAGE 286.00 0.00 0.00 0.00 0.00 286.00
00006564 SEALED AIR CORPORATION 4,914.71 0.00 0.00 0.00 0.00 4,914.71
00008986 SI SYSTEMS 150.00 0.00 0.00 0.00 0.00 150.00
00006558 SIEMENS AG 4,540.92 0.00 0.00 0.00 0.00 4,540.92
00004211 TAKACHIHO KOHEKI
CO.,LTD. 100,703.85 0.00 0.00 0.00 0.00 100,703.85
00006543 TELECOMET INTERNATIONAL
INC 6,018.00 0.00 0.00 0.00 0.00 6,018.00
00000457 TELECOMMUNICATIONS
CONCEPTS 18,297.60 0.00 0.00 0.00 0.00 18,297.60
00000357 TELECOMMUNICATIONS
CONCEPTS 2,972.40 0.00 0.00 0.00 0.00 2,972.40
00004216 TELINDUS NETWORKS NV 52,245.10 0.00 0.00 0.00 0.00 52,245.10
00004232 TELUS COMMUNICATIONS
EDTN IN 57,584.88 0.00 0.00 0.00 0.00 57,584.88
00004237 TRANSACTION NETWORK
SERVICES 54,999.99 0.00 0.00 0.00 0.00 54,999.99
00008412 CONNECTING POINT COMPUTER 1,129.87 0.00 0.00 0.00 0.00 1,129.87
00008991 VOSPER-MANTECH LTD 2,834.60 0.00 0.00 0.00 0.00 2,834.60
TOTAL 508,838.26 (91,836.76) 0.00 0.00 0.00 417,001.50
Nx Networks, Inc.
Monthly Operating Report
Income Statement
(Business Debtor, Accrual Basis)
Calendar Month November 1 to November 30, 2001
This Month Year to Date
SALES:
Product Sales 158,843
Service Sales 273,401
-------
432,245
-------
COST OF SALES:
Product Cost of Sales - materials 50,761
Product Cost of Sales - manufacturing overhead 67,015
Service Costs - includes payroll and other costs 97,997
-------
215,773
-------
-------
GROSS MARGIN 216,471
-------
OPERATING EXPENSES:
- -------------------
OFFICER SALARIES (GROSS) 46,200
OTHER EMPLOYEES SALARIES (GROSS) 81,148
TAXES (PAYROLL: EMPLOYER'S SHARE) 2,353
COMMISSION -
TEMPORARY LABOR 2,000
EMPLOYEE BENEFITS (insurance,pension etc) 7,000
TUITION ASSISTANCE 700
RECRUITING -
RELOCATION -
TRAVEL & ENTERTAINMENT 14,508
TELEPHONE 7,072
UTILITIES 3,917
OFFICE SUPPLIES 2,480
POSTAGE & DUPLICATION -
OFFICE RENT 15,132
MTL OVERHEAD CREDIT -
LEASED EQUIPMENT 2,540
REPAIR & MAINTENANCE 11,886
INSURANCE 50,084
MATERIALS & TOOLS 50
NEW PRODUCT MATERIALS -
LAB SUPPLIES -
RGA EXPENSES -
FREIGHT (174)
MARKETING MATERIALS -
LEGAL 50,265
ACCOUNTING 3,639
TRADE SHOW -
ADVERTISING -
PUBLIC RELATIONS 1,611
PROMITIONS -
SALES CONTRACTORS 4,913
CONSULTING 18,094
BAD DEBT -
MATERIAL OVERHEAD CREDIT -
SALES & USE TAX 8,794
OTHER TAX 5,590
OTHER EXPENSES 639
DEPRECIATION 102,908
GOODWILL AMORTIZATION 635,993
---------
---------
Total operating expense $ 1,079,340
---------
OPERATING INCOME/(LOSS)/EBITDA (862,869)
Other Income (Expenses)
Interest Expense (2,032)
Interest Income 3,182
Other Income 378
--------
Total income and other expense 1,528
--------
Net Income/(Loss) $ (861,341)
NXNETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
AS OF NOVEMBER 30, 2001
ASSETS
------
CURRENT ASSETS
Cash and cash equivalents 827,560
Pre-Petition Accounts Receivable 2,837,002
Post-Petition Accounts receivable 417,002
Less reserve for bad debt & returns (2,383,581)
Receivables from Officers, Affiliates, Employees -
Inventory 2,923,566
Other current assets
Prepaids 492,562
------------
Total Current Assets 5,114,111
FIXED ASSETS
Property and Equipment 11,633,606
Less: Accumulated Depreciation (9,486,898)
------------
Total Fixed Assets 2,146,708
OTHER ASSETS
Deposits 694,534
Goodwill, Net 16,874,025
-----------
Total Other Assets 17,568,559
-----------
TOTAL ASSETS 24,829,377
===========
LIABILITIES & STOCKHOLDER'S EQUITY
----------------------------------
POST-PETITION LIABILITIES:
Accounts Payable 253,589
Accrued Accounts Payable 99,520
Deferred Revenue 398,169
Taxes Payable 1,006
-----------
Total Post-Petition Liabilities 752,285
PRE-PETITION LIABILITIES:
Priority Claim 448,125
Secured Claim 558,735
Unsecured 13,009,090
General pre-pretition accruals 5,152,986
-----------
Total Pre-Petition Liabilities 19,168,937
-----------
TOTAL LIABILITIES 19,921,222
-----------
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 (290,636,572)
Accumulated (deficit)/income-Post-petition (861,341)
Warrants 6,322,333
Notes Receivable from officer (1,000,000)
Cummulative Translation Adj. 8,915
Total Stockholders' equity 4,908,156
------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 24,829,378
============
NXNETWORKS, INC.
CASH FLOW STATEMENT (SOURCES (USES) OF CASH)
PAYROLL AND TAX ACCOUNTS
(BUSINESS DEBTOR, ACCRUAL BASIS)
CALENDAR MONTH ENDING NOVEMBER 30, 2001
All figures refer to post-petition transactions
Net Income/(loss) (861,341)
add expenses not requiring Cash:
Depreciation 102,908
Amortization 635,993
Other Sources (Uses) Cash:
Accounts receivable 49,647
Inventories 44,534
Other current assets (170,989)
Deposits 5,638
Note payable to vendor -
accounts payable 181,110
Accrued liabilities 190,580
total other souces (uses) of cash 178,081
Cash beginning 649,479
Cash ending 827,560