IN RE: Ardent, Inc. (consolidated) Chapter 11
Debtor(s) Ardent Communications, Inc. (ACI) Case No.: 01-2085
Ardent, Inc. (AI) Case No.: 01-2086
Business Anywhere USA, Inc. (BA) Case No.: 01-2208
CAIS Software Solutions,Inc. (CSS) Case No.: 01-2209
MONTHLY OPERATING REPORT
Calendar Month October 10 to October 31, 2001 (ACT, AI)
Calendar Month October 26, 2001 to October 31, 2001 (BA, CSS)
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.
Gregory Boryan, Controller
Ardent, Inc.
6861 Elm Street, 1st Floor
McLean, VA 22101
703-276-4493
3. NUMBER OF EMPLOYEES paid during this period: 117
4. Have there been any CHANGES IN THE NATURE OF YOUR BUSINESS since the
last reporting period?
Yes [ ] No [ ]. If yes, explain below: n/a - first reporting period
5. Are all BUSINESS LICENSES current? Yes [x] No [ ] Not Applicable [ ]
6. PRE-PETITION ACCOUNTS RECEIVABLE:
Beginning Balance $ 8,483,049
Collected this Period (1,506,699)
Non-cash Adjustments 547,049
Ending Balance $ 7,523,399
7. POST-PETITION ACCOUNTS RECEIVABLE:
0-30 Days: $2,561,799 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: $534,321 31-60 Days: $0 Over 60 Days: $0
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 [ ]. 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.
All taxes are reported and remitted to the appropriate taxing
authorities by our outside payroll service, Ceredian Pay America.
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.
Ceredian payroll tax reports attached.
10. ESCROW ACCOUNTS. Are you utilizing your tax account only for deposits
and payment of payroll and sales taxes? Yes [ ] No [ ]. If no,
explain: N/A
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 N/A Liability 5/1/02
Fire 5/1/02 Workers Comp. 5/1/02
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.
- ------------------------------------------------------------------------------
N/A
16. PAYMENTS TO PROFESSIONALS (Attorneys, Accountants, Real Estate Agents,
Auctioneers, Appraisers, etc., during reporting period:
(Attach additional sheets, if necessary.)
Professional Service Amount
----------------------------------------------------------------
Swidler Berlin Retainer (approved by Court) $200,000
17. QUARTERLY U.S. TRUSTEE FEES paid during reporting period: $ 0
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: December 27, 2001 DEBTOR-IN-POSSESSION
Ardent Communications,
Inc. and subsidiaries
Name/Title: Evans Anderson, President By: /s/ Evans K. Anderson
-------------------------
Address: 6849 Old Dominion Drive, Suite 200
McLean, VA 22101
Phone: 703-793-1073
IN RE: Ardent, Inc. (consolidated) Chapter 11
Debtor(s) Ardent Communications, Inc. (ACI) Case No.: 01-2085
Ardent, Inc. (AI) Case No.: 01-2086
Business Anywhere USA, Inc. (BA) Case No.: 01-2208
CAIS Software Solutions,Inc. (CSS) Case No.: 01-2209
Monthly Operating Report
Income Statement
(Business Debtor, Accrual Basis)
Calendar Month October 10 to October 31, 2001 (ACT, AI)
Calendar Month October 26, 2001 to October 31, 2001 (BA, CSS)
Current Month Year to Date
------------- ------------
(A) Total Sales/Income (A) 2,564,426 2,564,426
(B) Total Cost of Sales (B) 2,090,808 2,090,808
------------- -------------
(C) Gross Profit (C=A-B) 473,618 473,618
------------- -------------
Operating Expenses
Officer Salaries (Gross) 69,537 69,537
Other Employee Salaries (Gross) 264,721 264,721
Taxes (Payroll: Employer's Share) 14,058 14,058
Employee Benefits (Insurance, Pension 138,864 138,864
Plan, etc. Employer's Share)
Advertising 11,818 11,818
Bad Debts - -
Depreciation and Amortization 735,081 735,081
Insurance (Other) 95,760 95,760
Leases (other than Rent) - -
Outside Services & Contractors 1,935 1,935
Professional Fees (Attorney, Accountant) 146,349 146,349
Rent and leases 40,435 40,435
Repairs & Maintenace 109,520 109,520
Supplies 12,691 12,691
Taxes (Other) 8,468 8,468
Telephone 28,473 28,473
Travel 16,383 16,383
Utilities - -
U.S. Trustee Quarterly Fee 5,500 5,500
Bank charges 6,471 6,471
---------- ----------
(D) Total Operating Expenses (D) 1,706,064 1,706,064
---------- ----------
(E) Profit/(Loss)from operations (E=C-D) (1,232,446) (1,232,446)
---------- ----------
Other Income (Expenses)
Interest Income 325 325
Interest Exp - -
Extraordinary Items
----------- ----------
(F) Total Other Income/Expense &
Extraordinary Items (F) 325 325
------------ ----------
(G) Income (Loss) Before Taxes (G=E+F) (1,232,121) (1,232,121)
(H) Income Tax Expense (H) - -
------------ -----------
(I) Net Income (Loss) (I=G-H) (1,232,121) (1,232,121)
============ ===========
IN RE: Ardent, Inc. (consolidated) Chapter 11
Debtor(s) Ardent Communications, Inc. (ACI) Case No.: 01-2085
Ardent, Inc. (AI) Case No.: 01-2086
Business Anywhere USA, Inc. (BA) Case No.: 01-2208
CAIS Software Solutions,Inc. (CSS) Case No.: 01-2209
CASH RECONCILIATION REPORT
(Business Debtor, Accrual Basis)
Calendar Month October 10 to October 31, 2001 (ACT, AI)
Calendar Month October 26, 2001 to October 31, 2001 (BA, CSS)
Current YTD
Month Totals
------- ------
(A) Beginning Cash Balance (A) 3,081,927 3,081,927
(B) Net Income (Loss) (B) (1,232,121) (1,232,121)
Add Expenses Not Requiring Cash:
Depreciation 735,081 735,081
---------- ---------
(C) Sub-Total (C) 735,081 735,081
---------- ---------
(D) Cash from Operations (D=B+C) (497,040) (497,040)
---------- ---------
Other Sources (Uses) of Cash:
Sources (Uses)
- --------------
Decrease (Incr) - Accounts Receivable (1,602,149) (1,602,149)
Decrease (Incr) - Other Current Assets 248,702 248,702
Decrease (Incr) - Other Long-Term Assets 73,170 73,170
Decrease (Incr) - Equipment (73,169) (73,169)
Decrease (Incr) - Furniture & Equipment - -
Increase (Decr) - Accounts Payable 534,321 534,321
Increase (Decr) - Accrued Interest - -
Increase (Decr) - Accrued P/R Taxes - -
Increase (Decr) - Accrued Rent - -
Increase (Decr) - Accrued Salaries - -
Increase (Decr) - Accrued Sales Taxes - -
Increase (Decr) - Other Accrued Liabilities 805,644 805,644
Increase (Decr) - Notes Payable - Banks - -
Increase (Decr) - Notes Payable - Other - -
(Less) Unrecorded bank service charges - -
--------- --------
(E) Total Other Sources (Uses)
of Cash (E) (13,481) (13,481)
--------- ---------
(F) Ending Cash Balance (F=A+D+E) 2,571,406 2,571,406
========= =========
(G) Balance per Bank Statement (G) 2,714,127 2,714,127
(H) Less Outstanding Checks (H) 142,721 142,721
(I) Add Deposits in Transit (I) - -
--------- ---------
(J) Reconciled Bank Balance (J=(G-H)+I) 2,571,406 2,571,406
========= =========
Ending Cash Balance (F) and Reconciled Bank Balance (J) should equal.
Beginning Cash Checkbook Balance 3,081,927 3,081,927
Inflows 1,509,663 1,509,663
Outflows (2,020,184) (2,020,184)
--------- ---------
Ending Cash Checkbook Balance 2,571,406 2,571,406
========= =========
IN RE: Ardent, Inc. (consolidated) Chapter 11
Debtor(s) Ardent Communications, Inc. (ACI) Case No.: 01-2085
Ardent, Inc. (AI) Case No.: 01-2086
Business Anywhere USA, Inc. (BA) Case No.: 01-2208
CAIS Software Solutions,Inc. (CSS) Case No.: 01-2209
Balance Sheet
As of October 31, 2001
CURRENT ASSETS
Cash 2,571,406
Pre-Petition Accounts Receivable 7,523,399
Post-Petition Accounts receivable 2,561,799
Notes Receivable
Inventory
Other current assets
------------
Total Current Assets 16,007,791
FIXED ASSETS
Land
Buildings
Equipment, Furniture & Fixtures 93,510,129
------------
Less Accumulated Depreciation (20,980,270)
------------
Total Fixed Assets 72,529,859
OTHER ASSETS
Net Intangibles 4,008,564
Investments 4,200,000
Other Long-Term Assets 1,113,622
-----------
Total Other Assets 9,322,186
-----------
TOTAL ASSETS 97,859,836
===========
POST-PETITION LIABILITIES:
Accounts Payable 524,321
Notes Payable
Rents and Leases Payable
Taxes Payable
-----------
Total Post-Petition Liabilities 534,321
PRE-PETITION LIABILITIES:
Priority Claims
Secured Debts 17,056,411
Unsecured Debts 100,180,826
-----------
Total Pre-Petition Liabilities 117,237,237
ACCRUED LIABILITIES
Accrued Dividends 2,928,865
Deferred Gain on Sale of Assets 5,000,000
Other Accrued Liabilities 5,472,124
-----------
Total Accrued Liabilities 13,400,989
OWNERS' EQUITY (Deficit):
Preferred Stock 188,076,592
Treasury Stock (17,073,421)
Common Stock 242,698
Stock Warrants 63,375,977
Paid in Capital 223,307,675
Retained Earnings (Deficit)
Pre-Petition (490,010,111)
Post-Petition (1,232,121)
Total Owners' Equity (Deficit) (33,312,711)
------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 97,859,836
============
NOTE: All equity received by Ardent Communications, Inc. (parent) was
transferred to the subsidiaries to fund operating losses and capital
expenditures.
Deferred gain represents contingent liability to Cisco Systems, Inc.
for any patent claims related to the sale of the IPORT software in
December 2000.
IN RE: Ardent, Inc. (consolidated) Chapter 11
Debtor(s) Ardent Communications, Inc. (ACI) Case No.: 01-2085
Ardent, Inc. (AI) Case No.: 01-2086
Business Anywhere USA, Inc. (BA) Case No.: 01-2208
CAIS Software Solutions,Inc. (CSS) Case No.: 01-2209
CASH DISBURSEMENTS SUMMARY REPORT
Calendar Month October 10 to October 31, 2001 (ACT, AI)
Calendar Month October 26, 2001 to October 31, 2001 (BA, CSS)
(All figures refer to post-petition transactions)
Total Disbursements from Operating Account 1,355,184
Total Disbursements from Payroll Account 1,010,160
Total Disbursements from Tax Escrow Account -
Total Disbursements from any Other Account -
Total Disbursements from all Accounts ---------
2,365,344
=========
NOTE: Excludes intercompany transfers to/from subsidiaries.
IN RE: Ardent, Inc. (consolidated) Chapter 11
Debtor(s) Ardent Communications, Inc. (ACI) Case No.: 01-2085
Ardent, Inc. (AI) Case No.: 01-2086
Business Anywhere USA, Inc. (BA) Case No.: 01-2208
CAIS Software Solutions,Inc. (CSS) Case No.: 01-2209
ACCOUNTS RECEIVABLE
As of October 31, 2001
(All figures refer to post-petition transactions)
Creditor Total Date Past Due Past Due
Due Incurred (31-60 days) (Over 60 days)
TOTAL $2,561,799 Various
NOTE: Details of Accounts Receivable available upon request.
IN RE: Ardent, Inc. (consolidated) Chapter 11
Debtor(s) Ardent Communications, Inc. (ACI) Case No.: 01-2085
Ardent, Inc. (AI) Case No.: 01-2086
Business Anywhere USA, Inc. (BA) Case No.: 01-2208
CAIS Software Solutions,Inc. (CSS) Case No.: 01-2209
ACCOUNTS PAYABLE
As of October 31, 2001
(All figures refer to post-petition transactions)
Creditor Total Date Past Due Past Due
Due Incurred (31-60 days) (Over 60 days)
TOTAL $534,321 Various
NOTE: Details of Accounts Payable available upon request.