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 May, 1998
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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
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2. ASSET/LIABILITY SUMMARY
Current Assets (Market Value) $100,599 $102,868 $245,867
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Total Assets (Market Value) $5,513,217 $5,515,486 $5,665,985
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Current Liabilities $99,684 $80,356 $0
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Total Liabilities $5,566,719 $5,547,391 $5,467,035
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PETITION
CURRENT PRIOR DATE TO
MONTH MONTH MONTH END
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3. STATEMENT OF CASH RECEIPTS & DISBURSEMENTS FOR MONTH
a. Total Receipts $23 $23 $26,195
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b. Total Disbursements $2,292 $5,121 $17,233
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c. Excess (Deficiency) of Receipts Over Disbursements (a - b) ($2,269) ($5,098) $8,962
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d. Cash Balance Beginning of Month $27,712 $32,810 ------------
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e. Cash Balance End of Month (c + d) $25,443 $27,712
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RECEIVABLES LIABILITIES
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4. POST-PETITION LIABILITIES & RECEIVABLES
Balance at End of Previous Month $75,156 $80,356
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Balance at End of Current Month $75,156 $99,684
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5. PAST DUE POST-PETITION LIABILITIES
Balance at End of Previous Month (over 30 days) $0
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Balance at End of Current Month (over 30 days) $658
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YES NO
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6. Are all federal, state, and local taxes current? (if no, attach schedule of unpaid items) X
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7. Have any payments been made to pre-petition creditors, other than payments in the normal
course to secured creditors or lessors? (if yes, attach listing including date of payment,
amount of payment and name of payee) X
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8. Have any payments been made to officers, insiders, shareholders, relatives?
(if yes, attach listing including date of payment, amount and reason for payment, and name of payee) X
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9. Have any payments been made to professionals? (if yes, attach listing including date of payment,
amount of payment and name of payee) X
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10. If you answered yes to line 7,8, or 9, were all such payments approved by the court? N/A
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11. Is the estate insured for replacement cost of assets and for general liability? X
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12. Are U.S. Trustee quarterly fees current? X
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I declare under penalty of perjury that I have reviewed the above summary
and attached financial statements, and after making reasonable inquiry believe
that these documents are correct.
Date: June 23, 1998 Richard J Redett
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Responsible Individual
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED MAY, 1998
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($ )
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ASSETS
FROM SCHEDULES MARKET VALUE
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CURRENT ASSETS
1 Cash and cash equivalents - unrestricted $25,443
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2 Cash and cash equivalents - restricted $0
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3 Accounts receivable (net) A $75,156
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4 Inventory B $0
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5 Prepaid expenses $0
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6 Other:
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7
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8 TOTAL CURRENT ASSETS $100,599
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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
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14 Vehicles D $0
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15 Other: D
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16 D
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17 D
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18 D
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19 D
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20 TOTAL PROPERTY AND EQUIPMENT $0
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OTHER ASSETS
21 Notes receivable-net of allowances $5,000,000
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22 Investment-NST $300,000
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23 Investment-subs $112,618
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24 Accounts receivable-intercompany net of allowances $0
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25 TOTAL OTHER ASSETS $5,412,618
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26 TOTAL ASSETS $5,513,217
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NOTE: Indicate the method used to estimate the market value of assets (e.g.,
appraisals; familiarity with comparable market prices, etc.) and the
date the value was determined. Estimated based on experience
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LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($_______)
LIABILITIES
POST-PETITION
FROM SCHEDULES MARKET VALUE
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CURRENT LIABILITIES
27 Salaries and wages
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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 $1,425
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33 Real property lease arrearage
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34 Personal property lease arrearage
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35 Accrued professional fees $98,259
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36 Current portion of long-term debt (due within 12 months)
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37 Other:
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38
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39
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40 TOTAL CURRENT LIABILITIES $99,684
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41 LONG-TERM DEBT, NET OF CURRENT PORTION
42 TOTAL POST-PETITION LIABILITIES $99,684
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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 $5,566,719
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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 ($18,589,046)
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52 Market value adjustment ($34,743)
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53 TOTAL EQUITY (DEFICIT) ($53,502)
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54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $5,513,217
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SCHEDULES
(GENERAL BUSINESS CASE)
($ )
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SCHEDULE A
ACCOUNTS RECEIVABLE(NET)/PAYABLE
ACCOUNTS ACCOUNTS PAYABLE PAST DUE
Receivables and Payables Ageings RECEIVABLE [POST PETITION] POST PETITION DEBT
---------------- --------------- ------------------
0 -30 Days $767
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31-60 Days $658
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61-90 Days $658
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91+ Days $75,156
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Total accounts receivable/payable $75,156 $1,425
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Allowance for doubtful accounts ------------
Accounts receivable (net) $75,156
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SCHEDULE B
INVENTORY/COST OF GOODS SOLD
TYPES AND AMOUNT OF INVENTORY(IES) COST OF GOODS SOLD
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INVENTORY(IES) Inventory Beginning of Month
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 --------------
Work-in-progress -------------- Less -
Finished goods -------------- Inventory End of Month
Shrinkage --------------
Personal Use --------------
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Other -
Explain -------------------
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Cost of Goods Sold $0
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TOTAL $0
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METHOD OF INVENTORY CONTROL INVENTORY VALUATION METHODS
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Do you have a functioning perpetual inventory system? Indicate by a checkmark method of inventory 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
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Semi-annually ___ Retail method
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Annually ___ Other -
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Date of last physical inventory was Unknown Explain
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Date of next physical inventory is N/A -------------------------------
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SCHEDULE C
REAL PROPERTY
DESCRIPTION COST MARKET VALUE
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None
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TOTAL $0 $0
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SCHEDULE D
OTHER DEPRECIABLE ASSETS
DESCRIPTION COST MARKET VALUE
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MACHINERY & EQUIPMENT -
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TOTAL $0 $0
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FURNITURE & FIXTURES -
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TOTAL $0 $0
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OFFICE EQUIPMENT -
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TOTAL $0 $0
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LEASEHOLD IMPROVEMENTS -
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TOTAL $0 $0
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VEHICLES -
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TOTAL $0 $0
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SCHEDULE E
PRE-PETITION LIABILITIES
CLAIMED ALLOWED
LIST TOTAL CLAIMS FOR EACH CLASSIFICATION - AMOUNT AMOUNT (b)
- ----------------------------------------- ------- ----------
Secured claims (a) $100,000
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Priority claims other than taxes
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Priority tax claims $101,776
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General unsecured claims $5,265,259
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(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 $3,000,000 as the Allowed Amount.
SCHEDULE F
RENTAL INCOME INFORMATION
Not Applicable to General Business Cases.
STATEMENT OF OPERATIONS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED MAY, 1998
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$ ________
CURRENT MONTH
- ------------------------------------ CUMULATIVE NEXT MONTH
ACTUAL FORECAST VARIANCE (CASE TO DATE) FORECAST
- ------ -------- -------- -------------- --------
REVENUES
$0 1 Gross Sales $7,000
- ---------- -------- ---------- ---------- ------
$0 2 less: Sales Returns & Allowances
- ---------- -------- ---------- ---------- ------
$0 3 Net Sales $7,000 $0
- ---------- -------- ---------- ---------- ------
$0 4 less: Cost of Goods Sold (Schedule 'B') $68,271
- ---------- -------- ---------- ---------- ------
$0 5 Gross Profit ($61,271) $0
- ---------- -------- ---------- ---------- ------
$23 $23 6 Interest $70
- ---------- -------- ---------- ---------- ------
7 Other Income:
$0 8
- ---------- -------- ---------- ----------------------------------------------- ---------- ------
$0 9
- ---------- -------- ---------- ----------------------------------------------- ---------- ------
$23 $0 $23 10 TOTAL REVENUES ($61,201) $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
- ---------- -------- ---------- ---------- ------
$213 ($213) 20 Other Administrative $1,489
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$0 21 Interest
- ---------- -------- ---------- ---------- ------
22 Other Expenses:
- ---------- -------- ----------
$815 ($815) 23 Storage Rental $1,601
- ---------- -------- ---------- ---------- ------
$0 24 Accounting $1,510
- ---------- -------- ---------- ---------- ------
$0 25 Press Release $625
- ---------- -------- ---------- ---------- ------
$554 ($554) 26 Telecommunications $4,208
- ---------- -------- ---------- ---------- ------
$984 ($984) 27 SEC Reporting $2,531
- ---------- -------- ---------- ---------- ------
$243 ($243) 28 Litigation Costs $1,193
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$0 29
- ---------- -------- ---------- ----------------------------------------------- ---------- ------
$0 30
- ---------- -------- ---------- ----------------------------------------------- ---------- ------
$2,809 $0 ($2,809) 31 TOTAL EXPENSES $13,157 $0
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($2,786) $0 ($2,786) 32 SUBTOTAL ($74,358) $0
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REORGANIZATION ITEMS
$18,561 ($18,561) 33 Professional Fees $180,347
- ---------- -------- ---------- ---------- ------
$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 $4,592
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$250 ($250) 37 US Trustee Fees $500
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$0 38
- ---------- -------- ---------- ----------------------------------------------- ---------- ------
$18,811 $0 ($18,811) 39 TOTAL REORGANIZATION ITEMS $176,255 $0
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($21,597) $0 ($21,597) 40 NET PROFIT (Loss) BEFORE FEDERAL & STATE TAXES ($250,613) $0
- ---------- -------- ---------- ---------- ------
$0 41 Federal & State Income Taxes
- ---------- -------- ---------- ---------- ------
($21,597) $0 ($21,597) 42 NET PROFIT (Loss) ($250,613) $0
- ---------- -------- ---------- ---------- ------
- ---------- -------- ---------- ---------- ------
EXPLANATION OF VARIANCE TO STATEMENT OF OPERATIONS
(FOR VARIANCES GREATER THAN +/- 10% ONLY)
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SUMMARY OF CASH RECEIPTS AND DISBURSEMENTS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED MAY, 1998
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CASH BALANCE BEGINNING OF MONTH $27,712
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CASH RECEIPTS (1) $23
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CASH DISBURSEMENTS (1) $2,292
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EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS ($2,269)
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CASH BALANCE END OF MONTH $25,443
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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 $13,282 $12,161
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TOTAL FUNDS ON HAND FOR ALL ACCOUNTS $25,443
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(1) Excluding bank transfers between your accounts.