EXHIBIT 99.19
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
IN RE: TAL WIRELESS NETWORKS, INC. CASE NO: 97-58435 MM
CHAPTER 11
MONTHLY OPERATING REPORT
(GENERAL BUSINESS CASE)
SUMMARY OF FINANCIAL STATUS
MONTH ENDED October, 1997
---------------
1. Debtor in possession hereby submits this Monthly Operating Report on the
Accrual Basis of accounting (or if checked here ___ the Office of the U.S.
Trustee or the Court has approved the Cash Basis of Accounting for the
Debtor). Dollars reported in ($ _____).
END OF END OF AS OF
CURRENT PRIOR PETITION
MONTH MONTH FILING
----- ----- ------
2. ASSET/LIABILITY SUMMARY
Current Assets (Market Value) $219,677 $245,867
---------- --------- ----------
Total Assets (Market Value) $5,639,795 $5,665,985
---------- --------- ----------
Current Liabilities $0 $0
---------- --------- ----------
Total Liabilities $5,467,035 $5,467,035
---------- --------- ----------
PETITION
CURRENT PRIOR DATE TO
MONTH MONTH MONTH END
----- ----- --------
3. STATEMENT OF CASH RECEIPTS & DISBURSEMENTS FOR MONTH
a. Total Receipts $1,859
---------- --------- ----------
b. Total Disbursements $2,296
---------- --------- ----------
c. Excess (Deficiency) of Receipts Over
Disbursements (a - b) ($437) $0 $0
---------- --------- ----------
----------
d. Cash Balance Beginning of Month $16,481
---------- ---------
e. Cash Balance End of Month (c + d) $16,044 $0
---------- ---------
---------- ---------
RECEIVABLES LIABILITIES
----------- -----------
4. POST-PETITION LIABILITIES & RECEIVABLES
Balance at End of Previous Month $75,156 $0
---------- ----------
Balance at End of Current Month $75,156 $0
---------- ----------
5. PAST DUE POST-PETITION LIABILITIES
Balance at End of Previous Month (over 30 days) $0
----------
Balance at End of Current Month (over 30 days) $0
----------
YES NO
6. Are all federal, state, and local taxes current?
(if no, attach schedule of unpaid items) X
--------- ----------
7. Have any payments been made to pre-petition
creditors, other than payments in the normal
course to secured creditors or lessors? (if yes,
attach listing including date of payment,
amount of payment and name of payee) X
--------- ----------
8. Have any payments been made to officers, insiders,
shareholders, relatives? (if yes, attach listing
including date of payment, amount and reason
for payment, and name of payee) X
--------- ----------
9. Have any payments been made to professionals?
(if yes, attach listing including date of
payment, amount of payment and name of payee)
X
--------- ----------
10. If you answered yes to line 7,8, or 9, were all
such payments approved by the court?
--------- ----------
11. Is the estate insured for replacement cost of
assets and for general liability? X
--------- ----------
12. Are U.S. Trustee quarterly fees current? X
--------- ----------
I declare under penalty of perjury that I have reviewed the above summary
and attached financial statements, and after making reasonable inquiry
believe that these documents are correct.
Date: November 19, 1997 /s/ illegible
---------------------------- -----------------------------
Responsible Individual
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED October
-------------
($______)
ASSETS
FROM SCHEDULES MARKET VALUE
-------------- ------------
CURRENT ASSETS
1 Cash and cash equivalents - unrestricted $16,044
------------
2 Cash and cash equivalents - restricted $0
------------
3 Accounts receivable (net) A $75,156
------------
4 Inventory B $68,271
------------
5 Prepaid expenses $53,173
------------
6 Other: Cash-trust account $7,033
__________________________________________ ------------
7 _________________________________________________
8 TOTAL CURRENT ASSETS $219,677
------------
PROPERTY AND EQUIPMENT (MARKET VALUE)
9 Real property C $0
------------
10 Machinery and equipment D $0
------------
11 Furniture and fixtures D $7,500
------------
12 Office equipment D $0
------------
13 Leasehold improvements D $0
------------
14 Vehicles D $0
------------
15 Other: __________________________________________ D ------------
16 _________________________________________________ D ------------
17 _________________________________________________ D ------------
18 _________________________________________________ D ------------
19 _________________________________________________ D ------------
20 TOTAL PROPERTY AND EQUIPMENT $7,500
------------
OTHER ASSETS
21 Notes receivable-net of allowances $5,000,000
-------------------------------------------------- ------------
22 Investment-NST $300,000
-------------------------------------------------- ------------
23 Investment-subs $112,618
-------------------------------------------------- ------------
24 Accounts receivable-intercompany net of allowances $0
-------------------------------------------------- ------------
25 TOTAL OTHER ASSETS $5,412,618
------------
26 TOTAL ASSETS $5,639,795
------------
NOTE:
Indicate the method used to estimate the market value of assets (e.g.,
appraisals; familiarity with comparable market prices, etc.) and
the date the value was determined. Estimated based on experience
---------------------------------------
--------------------------------------------------------------------------
--------------------------------------------------------------------------
--------------------------------------------------------------------------
--------------------------------------------------------------------------
LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($________)
LIABILITIES FROM SCHEDULES
--------------
POST-PETITION
CURRENT LIABILITIES
27 Salaries and wages
------------
28 Payroll taxes
------------
29 Real and personal property taxes
------------
30 Income taxes
------------
31 Notes payable (short term)
------------
32 Accounts payable (trade) A $0
------------
33 Real property lease arrearage
------------
34 Personal property lease arrearage
------------
35 Accrued professional fees
------------
36 Current portion of long-term debt (due within 12 months)
------------
37 Other: _________________________________________________ ------------
38 ________________________________________________________ ------------
39 ________________________________________________________ ------------
40 TOTAL CURRENT LIABILITIES $0
------------
41 LONG-TERM DEBT, NET OF CURRENT PORTION
------------
42 TOTAL POST-PETITION LIABILITIES $0
------------
PRE-PETITION LIABILITIES (ALLOWED AMOUNT)
43 Secured claims E $100,000
------------
44 Priority unsecured claims E $101,776
------------
45 General unsecured claims E $5,265,259
------------
46 TOTAL PRE-PETITION LIABILITIES $5,467,035
------------
47 TOTAL LIABILITIES $5,467,035
------------
EQUITY (DEFICIT)
48 Preferred Stock $80,000
----------------------------------------------------------- ------------
49 Common Stock $28,846
----------------------------------------------------------- ------------
50 Additional Paid-In Capital $18,461,441
----------------------------------------------------------- ------------
51 Accumulated Deficit ($18,362,784)
----------------------------------------------------------- ------------
52 Market value adjustment ($34,743)
------------
53 TOTAL EQUITY (DEFICIT) $172,760
------------
54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $5,639,795
------------
------------
SCHEDULES
(GENERAL BUSINESS CASE)
($______)
SCHEDULE A
ACCOUNTS RECEIVABLE(NET)/PAYABLE
ACCOUNTS ACCOUNTS PAYABLE PAST DUE
RECEIVABLE [POST PETITION] POST PETITION DEBT
--------------- ----------------- ------------------
Receivables and Payables Ageings
0 -30 Days $75,156
--------------- ----------------- /
31-60 Days /
--------------- ----------------- /
61-90 Days / $0
--------------- ----------------- / ------------------
91+ Days /
--------------- ----------------- /
Total accounts receivable/payable $75,156 $0
--------------- -----------------
Allowance for doubtful accounts -----------------
---------------
Accounts receivable (net) $75,156
---------------
---------------
SCHEDULE B
INVENTORY/COST OF GOODS SOLD
TYPES AND AMOUNT OF INVENTORY(IES) COST OF GOODS SOLD
INVENTORY(IES) Inventory Beginning of Month $68,271
BALANCE AT ---------------
END OF MONTH
------------ Add -
Retail/Restaurants - Net purchases ---------------
Product for resale ------------ Direct labor ---------------
Manufacturing overhead ---------------
Distribution - Freight in ---------------
Product for resale ------------- Other:
---------------------------- ---------------
Manufacturer - ---------------------------- ---------------
Raw materials $68,271
-------------
Work-in-progress ------------- Less -
Finished goods ------------- Inventory End of Month $68,271
---------------
Shrinkage ---------------
Other - ------------- Personal Use ---------------
Explain _____________________
_____________________________ Cost of Goods Sold $0
---------------
---------------
TOTAL $68,271
-------------
-------------
METHOD OF INVENTORY CONTROL INVENTORY VALUATION METHODS
- --------------------------- ---------------------------
Do you have a functioning perpetual inventory system? Indicate by a checkmark method of
inventory valuation used.
Yes No X
------ ------
How often do you take a complete physical inventory? Valuation methods -
FIFO cost
--------------
Weekly LIFO cost
--- --------------
Monthly Lower of cost or
--- market X
Quarterly --------------
---
Semi-annually Retail method
--- --------------
Annually X Other -
--- --------------
Date of last physical inventory was Unknown Explain
------------------ ______________________________________
Date of next physical inventory is N/A ______________________________________
-------------------
SCHEDULE C
REAL PROPERTY
DESCRIPTION COST MARKET VALUE
----------- ---- ------------
None
---------------------------------------------------------------------- ------------ ------------
---------------------------------------------------------------------- ------------ ------------
---------------------------------------------------------------------- ------------ ------------
TOTAL $0 $0
------------ ------------
------------ ------------
SCHEDULE D
OTHER DEPRECIABLE ASSETS
DESCRIPTION COST MARKET VALUE
----------- ---- ------------
MACHINERY & EQUIPMENT -
---------------------------------------------------------------------- ------------ ------------
---------------------------------------------------------------------- ------------ ------------
---------------------------------------------------------------------- ------------ ------------
---------------------------------------------------------------------- ------------ ------------
TOTAL $0 $0
------------ ------------
------------ ------------
FURNITURE & FIXTURES -
$49,683 $7,500
---------------------------------------------------------------------- ------------ ------------
---------------------------------------------------------------------- ------------ ------------
---------------------------------------------------------------------- ------------ ------------
---------------------------------------------------------------------- ------------ ------------
TOTAL $49,683 $7,500
------------ ------------
------------ ------------
OFFICE EQUIPMENT -
---------------------------------------------------------------------- ------------ ------------
---------------------------------------------------------------------- ------------ ------------
---------------------------------------------------------------------- ------------ ------------
TOTAL $0 $0
------------ ------------
------------ ------------
LEASEHOLD IMPROVEMENTS -
---------------------------------------------------------------------- ------------ ------------
---------------------------------------------------------------------- ------------ ------------
---------------------------------------------------------------------- ------------ ------------
---------------------------------------------------------------------- ------------ ------------
TOTAL $0 $0
------------ ------------
------------ ------------
VEHICLES -
---------------------------------------------------------------------- ------------ ------------
---------------------------------------------------------------------- ------------ ------------
---------------------------------------------------------------------- ------------ ------------
---------------------------------------------------------------------- ------------ ------------
TOTAL $0 $0
------------ ------------
------------ ------------
SCHEDULE E
PRE-PETITION LIABILITIES
CLAIMED ALLOWED
LIST TOTAL CLAIMS FOR EACH CLASSIFICATION - AMOUNT AMOUNT (b)
------------------------------------------- ------------ ------------
Secured claims(a) $100,000
------------ ------------
Priority claims other than taxes
------------ ------------
Priority tax claims $101,776
------------ ------------
General unsecured claims $5,265,259
------------ ------------
(a) List total amount of claims even if under secured.
(b) Estimated amount of claim to be allowed after compromise or
litigation. As an example, you are a defendant in a lawsuit
alleging damage of $10,000,000 and a proof of claim is filed in
that amount. You believe that you can settle the case for a claim
of $3,000,000. For Schedule E reporting purposes you should list
$10,000,000 as the Claimed Amount and $3,000,000 as the Allowed
Amount.
SCHEDULE F
RENTAL INCOME INFORMATION
Not Applicable to General Business Cases.
STATEMENT OF OPERATIONS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED October
-------------
$_______________
CURRENT MONTH CUMULATIVE NEXT MONTH
- -----------------------------
ACTUAL FORECAST VARIANCE (CASE TO DATE) FORECAST
- ------ -------- -------- -------------- --------
REVENUES
$0 1 Gross Sales
- -------- --------- ---------- -------------- -----------
$0 2 less: Sales Returns & Allowances
- -------- --------- ---------- -------------- -----------
$0 $0 $0 3 Net Sales $0 $0
- -------- --------- ---------- -------------- -----------
$0 $0 4 less: Cost of Goods Sold (Schedule 'B')
- -------- --------- ---------- -------------- -----------
$0 $0 $0 5 Gross Profit $0 $0
- -------- --------- ---------- -------------- -----------
$0 6 Interest
- -------- --------- ---------- -------------- -----------
7 Other Income:
$0 8
- -------- --------- ---------- --------------------------------------- -------------- -----------
$0 9
- -------- --------- ---------- --------------------------------------- -------------- -----------
$0 $0 $0 10 TOTAL REVENUES $0 $0
- -------- --------- ---------- -------------- -----------
EXPENSES
$0 11 Compensation to Owner(s)/Officer(s)
- -------- --------- ---------- -------------- -----------
$0 12 Salaries/Commissions
- -------- --------- ---------- -------------- -----------
$0 13 Management Fees
- -------- --------- ---------- -------------- -----------
$0 14 Depreciation
- -------- --------- ---------- -------------- -----------
$0 15 Taxes:
- -------- --------- ---------- -------------- -----------
$0 16 Employer Payroll Taxes
- -------- --------- ---------- -------------- -----------
$0 17 Real Property Taxes
- -------- --------- ---------- -------------- -----------
$0 18 Other Taxes
- -------- --------- ---------- -------------- -----------
$0 19 Other Selling
- -------- --------- ---------- -------------- -----------
$0 20 Other Administrative
- -------- --------- ---------- -------------- -----------
$0 21 Interest
- -------- --------- ---------- -------------- -----------
22 Other Expenses:
- -------- --------- ---------- -------------- -----------
$786 ($786) 23 Storage Rental $786
- -------- --------- ---------- ---------------------------------------- -------------- -----------
$1,510 ($1,510) 24 Accounting $1,510
- -------- --------- ---------- ---------------------------------------- -------------- -----------
$0 25
- -------- --------- ---------- ---------------------------------------- -------------- -----------
$0 26
- -------- --------- ---------- ---------------------------------------- -------------- -----------
$0 27
- -------- --------- ---------- ---------------------------------------- -------------- -----------
$0 28
- -------- --------- ---------- ---------------------------------------- -------------- -----------
$0 29
- -------- --------- ---------- ---------------------------------------- -------------- -----------
$0 30
- -------- --------- ---------- ---------------------------------------- -------------- -----------
$2,296 $0 ($2,296) 31 TOTAL EXPENSES $2,296 $0
- -------- --------- ---------- -------------- -----------
($2,296) $0 ($2,296) 32 SUBTOTAL ($2,296) $0
- -------- --------- ---------- -------------- -----------
REORGANIZATION ITEMS
$23,915 ($23,915) 33 Professional Fees $23,915
- -------- --------- ---------- -------------- -----------
$0 34 Provisions for Rejected Executory Contracts
- -------- --------- ---------- -------------- -----------
Interest Earned on Accumulated Cash
$0 35 Resulting from Chp 11 Case
- -------- --------- ---------- -------------- -----------
$0 36 Gain or (Loss) from Sale of Equipment
- -------- --------- ---------- -------------- -----------
$0 37
- -------- --------- ---------- ---------------------------------------- -------------- -----------
$0 38
- -------- --------- ---------- ---------------------------------------- -------------- -----------
$23,915 $0 ($23,915) 39 TOTAL REORGANIZATION ITEMS $23,915 $0
- -------- --------- ---------- -------------- -----------
($26,211) $0 ($26,211) 40 NET PROFIT (LOSS) BEFORE FEDERAL &
STATE TAXES ($26,211) $0
- -------- --------- ---------- -------------- -----------
$0 41 Federal & State Income Taxes
- -------- --------- ---------- -------------- -----------
($26,211) $0 ($26,211) 42 NET PROFIT (LOSS) ($26,211) $0
- -------- --------- ---------- -------------- -----------
- -------- --------- ---------- -------------- -----------
EXPLANATION OF VARIANCE TO STATEMENT OF OPERATIONS
(FOR VARIANCES GREATER THAN +/- 10% ONLY)
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
SUMMARY OF CASH RECEIPTS AND DISBURSEMENTS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED October
------------------
CASH BALANCE BEGINNING OF MONTH $16,481
---------------
CASH RECEIPTS (1) $1,859
---------------
CASH DISBURSEMENTS (1) $2,296
---------------
EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS ($437)
---------------
CASH BALANCE END OF MONTH $16,044
---------------
---------------
RECAPITULATION OF FUNDS HELD AT END OF MONTH
- --------------------------------------------
ACCOUNT 1 ACCOUNT 2 ACCOUNT 3
--------- --------- ---------
BANK Wells Fargo Bank of America Citibank
---------------- ------------------- --------------
ACCOUNT TYPE General General General
---------------- ------------------- --------------
ACCOUNT NO. 0114-458243 18153-00477 45340826
---------------- ------------------- --------------
ACCOUNT PURPOSE Operations None None
---------------- ------------------- --------------
BALANCE, END OF MONTH $12,578 $1,321 $2,582
---------------- ------------------- --------------
TOTAL FUNDS ON HAND FOR ALL ACCOUNTS $16,481
----------------
----------------
(1) Excluding bank transfers between your accounts.