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 1 to October 31, 2002 (ACI, AI, 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
703-827-5383
3. NUMBER OF EMPLOYEES paid during this period: 6
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 0 NOTE: Ending balance is net of
Non-cash Adjustments 0 allowance for uncollected
Ending Balance $ 0 accounts.
7. POST-PETITION ACCOUNTS RECEIVABLE:
0-30 Days: $ 391,460 31-60 Days: $0 Over 60 Days: $347,583
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: $1,538,544 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
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authorities by our outside payroll service, Ceredian Pay America.
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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 5/10/03
Fire 5/10/03 Workers Comp. 10/31/02
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: See attached schedule
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.
- ------------------------------------------------------------------------------
Nortel Networks, Inc. NA 200,248 NA NA
TUT Systems, Inc. NA 75,575 NA NA
16. PAYMENTS TO PROFESSIONALS (Attorneys, Accountants, Real Estate Agents,
Auctioneers, Appraisers, etc., during reporting period:
(Attach additional sheets, if necessary.)
Professional Service Amount
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None
17. QUARTERLY U.S. TRUSTEE FEES paid during reporting period: $6,250
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 6, 2002 DEBTORS-IN-POSSESSION
Ardent Communications,
Inc. and subsidiaries
Name/Title: Ulysses Auger, CEO By: /s/ Ulysses Auger
-------------------------
Address: 6861 Elm Street, Suite 2E
McLean, VA 22101 Phone: 703-827-5380
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 1, 2002 to October 31, 2002 (ACI, AI, BA, CSS)
Year to Date January 1, 2002 to October 31, 2002 (ACI, AI, BA, CSS)
(all figures refer to post-petition transactions)
Current Month Year to Date
------------- ------------
(A) Total Sales/Income (A) - 3,811,650
(B) Total Cost of Sales (B) 1,426 3,449,730
------------- -------------
(C) Gross Profit (C=A-B) (1,426) 361,920
------------- -------------
Operating Expenses
Officer Salaries (Gross) 12,500 557,491
Other Employee Salaries (Gross) 48,469 1,428,719
Taxes (Payroll: Employer's Share) 2,945 132,943
Employee Benefits (Insurance, Pension 30,638 354,001
Plan, etc. Employer's Share)
Advertising - 1,263
Bad Debts 42,209 754,164
Depreciation and Amortization - 1,473,476
Insurance (Other) 2,746 401,021
Outside Services & Contractors 370 4,260
Professional Fees (Attorney, Accountant) 151,577 2,506,647
Rent and leases 18,351 664,398
Repairs & Maintenace - 882,620
Supplies (1,408) 29,389
Taxes and Other - (1,025,008)
Telephone 941 25,471
Travel 982 (90,046)
Utilities - 32,372
U.S. Trustee Quarterly Fee - 28,666
Bank charges 2,717 49,762
---------- ----------
(D) Total Operating Expenses (D) 313,038 8,214,608
---------- ----------
(E) Profit/(Loss)from operations (E=C-D) (314,464) (7,852,688)
---------- ----------
Other Income (Expenses)
Interest Income 2,044 54,977
Interest Expense - -
Impairment of Fixed Assets (1,728,174) (1,728,174)
Other Income (Expense) 56,325 (9,390,375)
Extraordinary Items
----------- ----------
(F) Total Other Income/Expense &
Extraordinary Items (F) (1,669,805) (11,063,572)
------------ ----------
(G) Income (Loss) Before Taxes (G=E+F) (1,984,269) (18,916,260)
(H) Income Tax Expense (Benefit) (H) - (196,288)
------------ -----------
(I) Net Income (Loss) (I=G-H) (1,984,269) (18,719,972)
============ ===========
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 (Adjusted for Non-Recurring)
(Business Debtor, Accrual Basis)
Calendar Month October 1, 2002 to October 31, 2002 (ACI, AI, BA, CSS)
(All figures refer to post-petition transactions)
Oct-02 (1)Non-recurring Oct-02
Actuals Adjustments Operations
------------- --------------- ------------
(A) Total Sales/Income (A) - -
(B) Total Cost of Sales (B) 1,426 1,426
---------------------------------------------
(C) Gross Profit (C=A-B) (1,426) - (1,426)
---------------------------------------------
Operating Expenses
Officer Salaries (Gross) 12,500 12,500
Other Employee Salaries (Gross) 48,469 48,469
Taxes (Payroll: Employer's Share) 2,945 2,945
Employee Benefits (Insurance,
Pension Plan, etc. Employer's 30,638 30,638
Share)
Advertising - -
Bad Debts 42,209 42,209
Depreciation and Amortization - -
Insurance (Other) 2,746 2,746
Outside Services & Contractors 370 370
Professional Fees (Attorney,
Accountant) 151,577 151,577
Rent and leases 18,351 18,351
Repairs & Maintenance - -
Supplies (1,408) (1,408)
Taxes and Other - -
Telephone 941 941
Travel 982 982
Utilities - -
U.S. Trustee Quarterly Fee - -
Bank charges 2,717 2,717
-------------------------------------------
(D) Total Operating Expenses (D) 313,068 - 313,038
-------------------------------------------
(E) Profit/(Loss)from
operations (E=C-D) 314,464 - (314,464)
-------------------------------------------
Other Income (Expenses)
Interest Income 2,044 2.044
Interest Expense - -
Impairment of Fixed Assets (1,728,174) 1,728,174 -
Other Income (Expense) 56,325 (56,400) (75)
Extraordinary Items
--------------------------------------------
(F) Total Other Income/Expense
& Extraordinary Items (F) (1,669,805) 1,661,774 1,969
--------------------------------------------
(G) Income (Loss) Before
Taxes (G=E+F) (1,984,269) 1,671,774 (312,495)
(H) Income Tax Expense (H) - -
--------------------------------------------
(I) Net Income (Loss) (I=G-H) (1,984,269) 1,671,774 (312,495)
============================================
NON-RECURRING ADJUSTMENTS
FOR THE MONTH ENDED OCTOBER 2002
Better
Adjustment Type Description (Worse)
--------------- ----------- ----------
Impairment of Fixed Assets Write down of impaired assets $ 1,728,174
Other Income (Expense) Return of fees associated with a
preference action $ (56,400)
-----------
$ 1,671,774
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, 2002
CURRENT ASSETS
Cash 1,827,021
Pre-Petition Accounts Receivable -
Post-Petition Accounts receivable 739,043
Other current assets 60,075
------------
Total Current Assets 2,626,139
FIXED ASSETS
Land
Buildings
Equipment, Furniture & Fixtures 287,976
------------
Gross Fixed Assets 287,976
Less Accumulated Depreciation 0
------------
Total Fixed Assets 287,976
OTHER ASSETS
Other Long-Term Assets 682,008
-----------
Total Other Assets 682,008
-----------
TOTAL ASSETS 3,596,123
===========
POST-PETITION LIABILITIES:
Accounts Payable 1,538,544
Accrued Salaries and Benefits 324,118
Other liabilities
-----------
Total Post-Petition Liabilities 1,862,663
PRE-PETITION LIABILITIES:
Priority Claims
Secured Debts 16,740,862
Unsecured Debts 93,414,251
Accrued Dividends on Preferred Stock 2,928,865
-----------
Total Pre-Petition Liabilities 113,083,979
OTHER LIABILITIES
Other Accrued Liabilities 745,103
-----------
Total Other Liabilities 745,103
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 (490,041,901)
Post-Petition (79,983,242)
Total Owners' Equity (Deficit) (112,095,622)
------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 3,596,123
============
NOTE: All equity received by Ardent Communications, Inc. (parent) was
transferred to the subsidiaries to fund operating losses and capital
expenditures.
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)
Current Month October 1, 2002 to October 31, 2002 (ACT, AI, BA, CSS)
Year to Date October 1, 2002, 2002 to October 31, 2002 (ACI, AI, BA, CSS)
(All figures refer to post-petition transactions)
Current YTD
Month Totals
------- ------
(A) Beginning Cash Balance (A) 1,335,278 3,066,969
(B) Net Income (Loss) (B) (1,984,269) (18,719,972)
Add Expenses (Income) Not Affecting Cash:
Depreciation - 1,473,476
Bad Debt Expense 42,209 754,164
---------- ---------
(C) Sub-Total (C) 42,209 2,227,640
---------- ---------
(D) Cash from Operations (D=B+C) (1,942,060) (16,492,332)
---------- ---------
Other Sources (Uses) of Cash:
Sources (Uses)
- --------------
Decrease (Incr)- Restricted Cash
(Held in Escrow) - -
Decrease (Incr)- Accounts Receivable 89,121 834,776
Decrease (Incr)- Other Current Assets 7,880 853,813
Decrease (Incr)- Other Long-Term Assets - 490,676
Decrease (Incr)- Equipment, Furniture &
Fixtures 2,578,222 15,885,304
Increase (Decr)- Post-Petition Liabilities (201,314) 986,024
Increase (Decr)- Pre-Petition and
Other Accrued Liabilities (40,017) (3,798,209)
(Less) Unrecorded bank service charges - -
--------- ----------
(E) Total Other Sources (Uses) of Cash (E) 2,443,803 15,252,384
--------- ----------
(F) Ending Cash Balance (F=A+D+E) 1,827,021 1,827,021
========= =========
(G) Balance per Bank Statement (G) 2,169,372
(H) Less Outstanding Checks (H) 342,351
(I) Add Deposits in Transit (I) -
---------
(J) Reconciled Bank Balance (J=(G-H)+I) 1,827,021
=========
Ending Cash Balance (F) and Reconciled Bank Balance (J) should equal.
Beginning Cash Checkbook Balance 1,335,278 3,066,969
Inflows 1,092,621 11,462,918
Release of PSI Escrow Funds - 235,639
Outflows (600,878) (12,938,506)
--------- ---------
Ending Cash Checkbook Balance 1,827,021 1,827,021
========= =========
IN RE: Ardent, Inc. (consolidated) Chapter 11
Debtor(s) Ardent Communications, Inc. (ACI) Case No.: 01-2085
CASH DISBURSEMENTS SUMMARY REPORT
Calendar Month October 1, 2002 to October 31, 2002 (ACI)
(All figures refer to post-petition transactions)
Total Disbursements from Operating Account -
Total Disbursements from Payroll Account -
Total Disbursements from Tax Escrow Account -
Total Disbursements from any Other Account -
---------
Total Disbursements from all Accounts -
=========
NOTE: Excludes intercompany transfers to/from subsidiaries.
IN RE: Ardent, Inc. (consolidated) Chapter 11
Debtor(s) Ardent, Inc. (AI) Case No.: 01-2086
CASH DISBURSEMENTS SUMMARY REPORT
Calendar Month October 1, 2002 to October 31, 2002 (AI)
(All figures refer to post-petition transactions)
Total Disbursements from Operating Account 545,363
Total Disbursements from Payroll Account 55,515
Total Disbursements from Tax Escrow Account -
Total Disbursements from any Other Account -
---------
Total Disbursements from all Accounts 600,878
=========
NOTE: Excludes intercompany transfers to/from subsidiaries.
IN RE: Ardent, Inc. (consolidated) Chapter 11
Debtor(s) Business Anywhere USA, Inc. (BA) Case No.: 01-2208
CASH DISBURSEMENTS SUMMARY REPORT
Calendar Month October 1, 2002 to October 31, 2002 (BA)
(All figures refer to post-petition transactions)
Total Disbursements from Operating Account -
Total Disbursements from Payroll Account -
Total Disbursements from Tax Escrow Account -
Total Disbursements from any Other Account -
---------
Total Disbursements from all Accounts -
=========
NOTE: Excludes intercompany transfers to/from subsidiaries.
IN RE: Ardent, Inc. (consolidated) Chapter 11
Debtor(s) CAIS Software Solutions,Inc. (CSS) Case No.: 01-2209
CASH DISBURSEMENTS SUMMARY REPORT
Calendar Month October 1, 2002 to October 31, 2002 (CSS)
(All figures refer to post-petition transactions)
Total Disbursements from Operating Account -
Total Disbursements from Payroll Account -
Total Disbursements from Tax Escrow Account -
Total Disbursements from any Other Account -
---------
Total Disbursements from all Accounts -
=========
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, 2002
(All figures refer to post-petition transactions)
Creditor Total Date Past Due Past Due
Due Incurred (31-60 days) (Over 60 days)
TOTAL $739,043 Various - 347,584
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, 2002
(All figures refer to post-petition transactions)
Creditor Total Date Past Due Past Due
Due Incurred (31-60 days) (Over 60 days)
TOTAL 1,538,544 Various - -
NOTE: Details of Accounts Payable available upon request.