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)
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SUMMARY OF FINANCIAL STATUS
MONTH ENDED June, 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
2. ASSET/LIABILITY SUMMARY MONTH MONTH FILING
----- ----- ------
Current Assets (Market Value) $89,956 $100,599 $245,867
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Total Assets (Market Value) $5,502,574 $5,513,217 $5,665,985
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Current Liabilities $106,971 $99,684 $0
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Total Liabilities $5,574,006 $5,566,719 $5,467,035
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PETITION
CURRENT PRIOR DATE TO
3. STATEMENT OF CASH RECEIPTS & DISBURSEMENTS FOR MONTH MONTH MONTH MONTH END
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a. Total Receipts $14 $23 $26,209
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b. Total Disbursements $10,657 $2,292 $27,890
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c. Excess (Deficiency) of Receipts Over Disbursements (a - b) ($10,643) ($2,269) ($1,681)
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d. Cash Balance Beginning of Month $25,443 $27,712 -------------
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e. Cash Balance End of Month (c + d) $14,800 $25,443
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4. POST-PETITION LIABILITIES & RECEIVABLES RECEIVABLES LIABILITIES
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Balance at End of Previous Month $75,156 $99,684
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Balance at End of Current Month $75,156 $106,971
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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) $1,425
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YES NO
--- --
6. Are all federal, state, and local taxes current? (if no, attach schedule of
unpaid items) X
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7. Have any payments been made to pre-petition creditors, other than payments
in the normal course to secured creditors or lessors? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
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8. Have any payments been made to officers, insiders, shareholders, relatives?
(if yes, attach listing including date of payment, amount and reason for
payment, and name of payee) X
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9. Have any payments been made to professionals? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
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10. If you answered yes to line 7,8, or 9, were all such payments approved by the court? X
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11. Is the estate insured for replacement cost of assets and for general liability? X
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12. Are U.S. Trustee quarterly fees current? X
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I declare under penalty of perjury that I have reviewed the above summary and
attached financial statements, and after making reasonable inquiry believe that
these documents are correct.
Date: July 24, 1998 Richard J Redett
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Responsible Individual
Effective 1/1/95
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED June, 1998
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($ ____ )
ASSETS
FROM SCHEDULES MARKET VALUE
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CURRENT ASSETS
1 Cash and cash equivalents - unrestricted $14,800
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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 ----------------------------------------------------- -------------
8 TOTAL CURRENT ASSETS $89,956
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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 $5,502,574
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NOTE:
Indicate the method used to estimate the market value of assets (e.g.,
appraisals; familiarity with comparable market prices, etc.) and the date
the value was determined. Estimated based on experience
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Effective 1/1/95
LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($ _____ )
LIABILITIES FROM SCHEDULES
POST-PETITION --------------
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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Accounts payable (trade) A $1,833
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33 Real property lease arrearage
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Personal property lease arrearage
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35 Accrued professional fees $105,138
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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 $106,971
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41 LONG-TERM DEBT, NET OF CURRENT PORTION
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42 TOTAL POST-PETITION LIABILITIES $106,971
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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 $5,574,006
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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 ($18,606,976)
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52 Market value adjustment ($34,743)
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53 TOTAL EQUITY (DEFICIT) ($71,432)
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54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $5,502,574
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Effective 1/1/95
SCHEDULES
(GENERAL BUSINESS CASE)
($ ____ )
SCHEDULE A
ACCOUNTS RECEIVABLE(NET)/PAYABLE
ACCOUNTS ACCOUNTS PAYABLE PAST DUE
Receivables and Payables Ageings RECEIVABLE [POST PETITION] POST PETITION DEBT
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0 -30 Days $408
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31-60 Days $767 |
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61-90 Days $658 | $1,425
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91+ Days $75,156 |
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Total accounts receivable/payable $75,156 $1,833
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Allowance for doubtful accounts ---------------
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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:
----------------
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Manufacturer -
Raw materials ------------------------ ------------------
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Work-in-progress Less -
---------------- Inventory End of Month
Finished goods ------------------
---------------- Shrinkage
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Other - Personal Use
---------------- ------------------
Explain
-------------------- Cost of Goods Sold $0
-----------------
---------------------------- -----------------
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
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How often do you take a complete physical inventory? Valuation methods -
FIFO cost
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Weekly LIFO cost
--- ------------
Monthly Lower of cost or
--- market
Quarterly ------------
--- Retail method
Semi-annually ------------
---
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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Effective 1/1/95
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 -
- -------------------------------------------------- --------------- ------------------
- -------------------------------------------------- --------------- ------------------
- -------------------------------------------------- --------------- ------------------
- -------------------------------------------------- --------------- ------------------
TOTAL $0 $0
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FURNITURE & FIXTURES -
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- -------------------------------------------------- --------------- ------------------
- -------------------------------------------------- --------------- ------------------
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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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- -------------------------------------------------- --------------- ------------------
- -------------------------------------------------- --------------- ------------------
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TOTAL $0 $0
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VEHICLES -
- -------------------------------------------------- --------------- ------------------
- -------------------------------------------------- --------------- ------------------
- -------------------------------------------------- --------------- ------------------
- -------------------------------------------------- --------------- ------------------
TOTAL $0 $0
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SCHEDULE E
PRE-PETITION LIABILITIES
CLAIMED ALLOWED
LIST TOTAL CLAIMS FOR EACH CLASSIFICATION - AMOUNT AMOUNT (b)
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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 $3,000,000 as the Allowed Amount.
SCHEDULE F
RENTAL INCOME INFORMATION
Not Applicable to General Business Cases.
Effective 1/1/95
STATEMENT OF OPERATIONS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED June, 1998
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$
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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
------- ------- -------- -------- ----
$14 $14 6 Interest $84
------- ------- -------- -------- ----
7 Other Income:
$0 8
------- ------- -------- ------------------------------------------ -------- ----
$0 9
------- ------- -------- ------------------------------------------ -------- ----
$14 $0 $14 10 TOTAL REVENUES ($61,187) $0
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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
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$0 19 Other Selling
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$9 ($9) 20 Other Administrative $1,498
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$0 21 Interest
------- ------- -------- -------- ----
22 Other Expenses:
$0 23 Storage Rental $1,601
------- ------- -------- ------------------------------------------ -------- ----
$0 24 Accounting $1,510
------- ------- -------- ------------------------------------------ -------- ----
$0 25 Press Release $625
------- ------- -------- ------------------------------------------ -------- ----
$408 ($408) 26 Telecommunications $4,616
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$468 ($468) 27 SEC Reporting $2,999
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$0 28 Litigation Costs $1,193
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$0 29
------- ------- -------- ------------------------------------------ -------- ----
$0 30
------- ------- -------- ------------------------------------------ -------- ----
$885 $0 ($885) 31 TOTAL EXPENSES $14,042 $0
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($871) $0 ($871) 32 SUBTOTAL ($75,229) $0
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REORGANIZATION ITEMS
$17,059 ($17,059) 33 Professional Fees $197,406
------- ------- -------- -------- ----
$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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$0 37 US Trustee Fees $500
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$0 38
------- ------- -------- ------------------------------------------ -------- ----
$17,059 $0 ($17,059) 39 TOTAL REORGANIZATION ITEMS $193,314 $0
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($17,930) $0 ($17,930) 40 NET PROFIT (LOSS) BEFORE FEDERAL & STATE TAXES ($268,543) $0
------- ------- -------- -------- ----
$0 41 Federal & State Income Taxes
------- ------- -------- -------- ----
($17,930) $0 ($17,930) 42 NET PROFIT (LOSS) ($268,543) $0
------- ------- -------- -------- ----
------- ------- -------- -------- ----
EXPLANATION OF VARIANCE TO STATEMENT OF Operations
(FOR VARIANCES GREATER THAN +/- 10% ONLY)
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Effective 1/1/95
SUMMARY OF CASH RECEIPTS AND DISBURSEMENTS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED June, 1998
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CASH BALANCE BEGINNING OF MONTH $25,443
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CASH RECEIPTS (1) $14
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CASH DISBURSEMENTS (1) $10,657
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EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS ($10,643)
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CASH BALANCE END OF MONTH $14,800
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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 $12,814 $1,986
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TOTAL FUNDS ON HAND FOR ALL ACCOUNTS $14,800
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(1) Excluding bank transfers between your accounts.
Effective 1/1/95