EXHIBIT 99.19
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
IN RE: TAL WIRELESS NETWORKS, INC. CASE NO: 97-58435 MM
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CHAPTER 11
MONTHLY OPERATING REPORT
(GENERAL BUSINESS CASE)
SUMMARY OF FINANCIAL STATUS
MONTH ENDED February, 1998
--------------------
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
2. ASSET/LIABILITY SUMMARY MONTH MONTH FILING
---------- ---------- ----------
Current Assets (Market Value) $122,273 $116,651 $245,867
---------- ---------- ----------
Total Assets (Market Value) $5,534,891 $5,536,769 $5,665,985
---------- ---------- ----------
Current Liabilities $36,494 $24,029 $0
---------- ---------- ----------
Total Liabilities $5,503,529 $5,491,064 $5,467,035
---------- ---------- ----------
PETITION
CURRENT PRIOR DATE TO
3. STATEMENT OF CASH RECEIPTS & DISBURSEMENTS FOR MONTH MONTH MONTH MONTH END
---------- ---------- ----------
a. Total Receipts $12,092 $0 $23,125
---------- ---------- ----------
b. Total Disbursements $80 $5,775 $8,169
---------- ---------- ----------
c. Excess (Deficiency) of Receipts Over
Disbursements (a - b) $12,012 ($5,775) $14,956
---------- ---------- ----------
----------
d. Cash Balance Beginning of Month $19,425 $25,200
---------- ----------
e. Cash Balance End of Month (c + d) $31,437 $19,425
---------- ----------
---------- ----------
4. POST-PETITION LIABILITIES & RECEIVABLES RECEIVABLES LIABILITIES
---------- ----------
Balance at End of Previous Month $75,156 $24,029
---------- ----------
Balance at End of Current Month $78,156 $36,494
---------- ----------
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) $1,993
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YES NO
---------- ----------
6. Are all federal, state, and local taxes current?
(if no, attach schedule of unpaid items) X
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7. Have any payments been made to pre-petition creditors,
other than payments in the normal course to secured
creditors or lessors? (if yes, attach listing including
date of payment, amount of payment and name of payee) X
---------- ----------
8. Have any payments been made to officers, insiders,
shareholders, relatives? (if yes, attach listing
including date of payment, amount and reason for
payment, and name of payee) X
---------- ----------
9. Have any payments been made to professionals? (if yes,
attach listing including date of payment, amount of payment
and name of payee) X
---------- ----------
10. If you answered yes to line 7,8, or 9, were all such payments
approved by the court? N/A
---------- ----------
11. Is the estate insured for replacement cost of assets and
for general liability? X
---------- ----------
12. Are U.S. Trustee quarterly fees current? X
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I declare under penalty of perjury that I have reviewed the above summary and
attached financial statements, and after making reasonable inquiry believe
that these documents are correct.
Date: March 18, 1998 Richard J Redett
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Responsible Individual
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED February
----------------
($ )
----------
ASSETS
FROM SCHEDULES MARKET VALUE
-------------- --------------
CURRENT ASSETS
1 Cash and cash equivalents - unrestricted $31,437
-------------
2 Cash and cash equivalents - restricted $0
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3 Accounts receivable (net) A $78,156
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4 Inventory B $0
-------------
5 Prepaid expenses $12,680
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6 Other:
------------------------------------ -------------
7
------------------------------------------ -------------
8 TOTAL CURRENT ASSETS $122,273
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PROPERTY AND EQUIPMENT (MARKET VALUE)
9 Real property C $0
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10 Machinery and equipment D $0
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11 Furniture and fixtures D $0
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12 Office equipment D $0
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13 Leasehold improvements D $0
-------------
14 Vehicles D $0
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15 Other: D
------------------------------------ -------------
16 D
------------------------------------------ -------------
17 D
------------------------------------------ -------------
18 D
------------------------------------------ -------------
19 D
------------------------------------------ -------------
20 TOTAL PROPERTY AND EQUIPMENT $0
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OTHER ASSETS
21 Notes receivable-net of allowances $5,000,000
------------------------------------------ -------------
22 Investment-NST $300,000
------------------------------------------ -------------
23 Investment-subs $112,618
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24 Accounts receivable-intercompany net
of allowances $0
------------------------------------------ -------------
25 TOTAL OTHER ASSETS $5,412,618
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26 TOTAL ASSETS $5,534,891
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-------------
NOTE:
Indicate the method used to estimate the market value of assets (e.g.,
appraisals; familiarity with comparable market prices, etc.) and the date
the value was determined. Estimated based on experience
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LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($ )
----------
LIABILITIES
FROM SCHEDULES
--------------
POST-PETITION
CURRENT LIABILITIES
27 Salaries and wages
-------------
28 Payroll taxes
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29 Real and personal property taxes
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30 Income taxes
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31 Notes payable (short term)
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32 Accounts payable (trade) A $3,174
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33 Real property lease arrearage
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34 Personal property lease arrearage
-------------
35 Accrued professional fees $33,320
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36 Current portion of long-term debt
(due within 12 months)
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37 Other:
----------------------------------- -------------
38
------------------------------------------ -------------
39
------------------------------------------ -------------
40 TOTAL CURRENT LIABILITIES $36,494
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41 LONG-TERM DEBT, NET OF CURRENT PORTION
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42 TOTAL POST-PETITION LIABILITIES $36,494
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PRE-PETITION LIABILITIES (ALLOWED AMOUNT)
43 Secured claims E $100,000
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44 Priority unsecured claims E $101,776
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45 General unsecured claims E $5,265,259
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46 TOTAL PRE-PETITION LIABILITIES $5,467,035
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47 TOTAL LIABILITIES $5,503,529
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EQUITY (DEFICIT)
48 Preferred Stock $80,000
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49 Common Stock $28,846
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50 Additional Paid-In Capital $18,461,441
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51 Accumulated Deficit ($18,504,182)
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52 Market value adjustment ($34,743)
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53 TOTAL EQUITY (DEFICIT) $31,362
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54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $5,534,891
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SCHEDULES
(GENERAL BUSINESS CASE)
($ )
----------
SCHEDULE A
ACCOUNTS RECEIVABLE(NET)/PAYABLE
ACCOUNTS ACCOUNTS PAYABLE PAST DUE
RECEIVABLE [POST PETITION] POST PETITION DEBT
---------------- ---------------- ----------------
Receivables and Payables Ageings
0 -30 Days $3,000 $1,181
---------------- ---------------- ---
31-60 Days $1,993 -
---------------- ---------------- -
61-90 Days - $1,993
---------------- ---------------- ---------------
91+ Days $75,156 -
---------------- ---------------- ---
Total accounts receivable/payable $78,156 $3,174
---------------- ----------------
----------------
Allowance for doubtful accounts
----------------
Accounts receivable (net) $78,156
----------------
----------------
SCHEDULE B
INVENTORY/COST OF GOODS SOLD
TYPES AND AMOUNT OF INVENTORY(IES) COST OF GOODS SOLD
- ---------------------------------- ------------------
INVENTORY(IES) Inventory Beginning of Month
BALANCE AT ---------------
END OF MONTH Add -
Retail/Restaurants - --------------- Net purchases
Product for resale ---------------
--------------- Direct labor
---------------
Distribution - Manufacturing overhead
Product for resale ---------------
--------------- Freight in
Manufacturer - ---------------
Raw materials
--------------- Other:
Work-in-progress
--------------- ---------------------- ---------------
Finished goods
--------------- ---------------------- ---------------
Less -
Other - Inventory End of Month
Explain ---------------
----------------- Shrinkage
---------------
------------------------- Personal Use
---------------
TOTAL $0 Cost of Goods Sold $0
--------------- ---------------
--------------- ---------------
METHOD OF INVENTORY CONTROL INVENTORY VALUATION METHODS
- --------------------------- ---------------------------
Do you have a functioning perpetual Indicate by a checkmark method of inventory
inventory system? valuation used.
Yes No
----- -----
How often do you take a complete physical
inventory?
Valuation methods -
FIFO cost
Weekly ----------------
------- LIFO cost
Monthly ----------------
------- Lower of cost or
Quarterly market
------- ----------------
Semi-annually Retail method
------- ----------------
Annually
-------
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 -
- -------------------------------------------- ----------------- -----------------
- -------------------------------------------- ----------------- -----------------
- -------------------------------------------- ----------------- -----------------
- -------------------------------------------- ----------------- -----------------
TOTAL $0 $0
----------------- -----------------
----------------- -----------------
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 February
------------
$
-----------------------
CURRENT MONTH
- ----------------------------------------- CUMULATIVE NEXT MONTH
ACTUAL FORECAST VARIANCE (CASE TO DATE) FORECAST
- ----------- ----------- ----------- ----------- -----------
REVENUES
$3,000 $3,000 1 Gross Sales $7,000
- ----------- ----------- ----------- ----------- -----------
$0 2 less: Sales Returns & Allowances
- ----------- ----------- ----------- ----------- -----------
$3,000 $0 $3,000 3 Net Sales $7,000 $0
- ----------- ----------- ----------- ----------- -----------
$0 4 less: Cost of Goods Sold (Schedule 'B') $68,271
- ----------- ----------- ----------- ----------- -----------
$3,000 $0 $3,000 5 Gross Profit ($61,271) $0
- ----------- ----------- ----------- ----------- -----------
$0 6 Interest
- ----------- ----------- ----------- ----------- -----------
7 Other Income:
$0 8
- ----------- ----------- ----------- --------------------------------------- ----------- -------------
$0 9
- ----------- ----------- ----------- --------------------------------------- ----------- -------------
$3,000 $0 $3,000 10 TOTAL REVENUES ($61,271) $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
- ----------- ----------- ----------- ----------- -----------
$652 ($652) 20 Other Administrative $974
- ----------- ----------- ----------- ----------- -----------
$0 21 Interest
- ----------- ----------- ----------- ----------- -----------
22 Other Expenses:
$0 23 Storage Rental $786
- ----------- ----------- ----------- --------------------------------------- ----------- -------------
$0 24 Accounting $1,510
- ----------- ----------- ----------- --------------------------------------- ----------- -------------
$0 25 Press Release $625
- ----------- ----------- ----------- --------------------------------------- ----------- -------------
$609 ($609) 26 Telecommunications $2,198
- ----------- ----------- ----------- --------------------------------------- ----------- -------------
$0 27
- ----------- ----------- ----------- --------------------------------------- ----------- -------------
$0 28
- ----------- ----------- ----------- --------------------------------------- ----------- -------------
$0 29
- ----------- ----------- ----------- --------------------------------------- ----------- -------------
$0 30
- ----------- ----------- ----------- --------------------------------------- ----------- -------------
$1,261 $0 ($1,261) 31 TOTAL EXPENSES $6,093 $0
- ----------- ----------- ----------- ----------- -----------
$1,739 $0 $1,739 32 SUBTOTAL ($67,364) $0
- ----------- ----------- ----------- ----------- -----------
REORGANIZATION ITEMS
$20,674 ($20,674) 33 Professional Fees $102,728
- ----------- ----------- ----------- ----------- -----------
$0 34 Provisions for Rejected Executory
Contracts
- ----------- ----------- ----------- ----------- -----------
Interest Earned on Accumulated Cash
$0 35 Resulting from Chp 11 Case
- ----------- ----------- ----------- ----------- -----------
36 Gain or (Loss) from
$4,592 ($4,592) Sale of Equipment $4,592
- ----------- ----------- ----------- ----------- -----------
$0 37 US Trustee Fees $250
- ----------- ----------- ----------- --------------------------------------- ----------- -------------
$0 38
- ----------- ----------- ----------- --------------------------------------- ----------- -------------
$16,082 $0 ($16,082) 39 TOTAL REORGANIZATION ITEMS $98,386 $0
- ----------- ----------- ----------- ----------- -----------
($14,343) $0 ($14,343) 40 NET PROFIT (LOSS) BEFORE FEDERAL &
STATE TAXES ($165,750) $0
- ----------- ----------- ----------- ----------- -----------
$0 41 Federal & State Income Taxes
- ----------- ----------- ----------- ----------- -----------
($14,343) $0 ($14,343) 42 NET PROFIT (LOSS) ($165,750) $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 February
---------------
CASH BALANCE BEGINNING OF MONTH $19,425
-----------
CASH RECEIPTS (1) $12,092
-----------
CASH DISBURSEMENTS (1) $80
-----------
EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS $12,012
-----------
CASH BALANCE END OF MONTH $31,437
-----------
-----------
RECAPITULATION OF FUNDS HELD AT END OF MONTH
- ---------------------------------------------
ACCOUNT 1 ACCOUNT 2 ACCOUNT 3
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BANK Wells Fargo Bank of America
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ACCOUNT TYPE General Murray&Murray Trust
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ACCOUNT NO. 0114-458243 00357-63272
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ACCOUNT PURPOSE Operations None
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BALANCE, END OF MONTH $19,345 $12,092
------------------- ------------------- -------------------
TOTAL FUNDS ON HAND FOR ALL ACCOUNTS $31,437
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(1) Excluding bank transfers between your accounts.