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 August, 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) $85,746 $89,494 $245,867
------------------- -------------------- -------------------
Total Assets (Market Value) $5,498,364 $5,502,082 $5,665,985
------------------- -------------------- -------------------
Current Liabilities $133,199 $121,646 $0
------------------- -------------------- -------------------
Total Liabilities $5,600,234 $5,588,681 $5,467,035
------------------- -------------------- -------------------
PETITION
CURRENT PRIOR DATE TO
3. STATEMENT OF CASH RECEIPTS & DISBURSEMENTS FOR MONTH MONTH MONTH MONTH END
----- ----- ---------
a. Total Receipts $0 $8 $26,217
------------------- -------------------- -------------------
b. Total Disbursements $3,718 $500 $32,108
------------------- -------------------- -------------------
c. Excess (Deficiency) of
Receipts Over Disbursements (a - b) ($3,718) ($492) ($5,891)
------------------- -------------------- -------------------
d. Cash Balance Beginning of Month $14,308 $14,800 -------------------
------------------- --------------------
e. Cash Balance End of Month (c + d) $10,590 $14,308
------------------- --------------------
------------------- --------------------
4. POST-PETITION LIABILITIES & RECEIVABLES RECEIVABLES LIABILITIES
----------- -----------
Balance at End of Previous Month $75,156 $121,646
------------------- -------------------
Balance at End of Current Month $75,156 $133,199
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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) $0
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YES NO
--- ---
6. Are all federal, state, and local taxes current? (if no, attach schedule of unpaid items) X
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7. Have any payments been made to pre-petition creditors, other than
payments in the normal course to secured creditors or lessors? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
-------------- ----------------
8. Have any payments been made to officers, insiders, shareholders,
relatives? (if yes, attach listing including date of payment, amount and reason for
payment, and name of payee) X
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9. Have any payments been made to professionals? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
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10. If you answered yes to line 7, 8, or 9, were all such payments approved by
the court? #
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11. Is the estate insured for replacement cost of assets and for general liability? N/A
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12. Are U.S. Trustee quarterly fees current? X
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I declare under penalty of perjury that I have reviewed the above summary
and attached financial statements, and after making reasonable inquiry
believe that these documents are correct.
Date: September 18, 1998 Richard J Redett
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Responsible Individual
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED August, 1998
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($_______)
ASSETS
FROM SCHEDULES MARKET VALUE
-------------- -------------
CURRENT ASSETS
1 Cash and cash equivalents - unrestricted $10,590
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2 Cash and cash equivalents - restricted $0
---------------------
3 Accounts receivable (net) A $75,156
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4 Inventory B $0
---------------------
5 Prepaid expenses $0
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6 Other:
---------------------------------------- ---------------------
7 ------------------------------------------------- ---------------------
8 TOTAL CURRENT ASSETS $85,746
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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 ---------------------
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
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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 $5,498,364
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----------------------
NOTE:
Indicate the method used to estimate the market value of assets
(e.g., appraisals; familiarity with comparable market prices, etc.)
and the date the value was determined. Estimated based on experience
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LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($ ______ )
LIABILITIES FROM SCHEDULES
--------------
POST-PETITION
CURRENT LIABILITIES
27 Salaries and wages
--------------------
28 Payroll taxes
--------------------
29 Real and personal property taxes
--------------------
30 Income taxes
--------------------
31 Notes payable (short term)
--------------------
32 Accounts payable (trade) A $349
--------------------
33 Real property lease arrearage
--------------------
34 Personal property lease arrearage
--------------------
35 Accrued professional fees $132,850
--------------------
36 Current portion of long-term debt (due within 12 months)
--------------------
37 Other:
------------------------------------- --------------------
38 ------------------------------------------------- --------------------
39 ------------------------------------------------- --------------------
40 TOTAL CURRENT LIABILITIES $133,199
--------------------
41 LONG-TERM DEBT, NET OF CURRENT PORTION
--------------------
42 TOTAL POST-PETITION LIABILITIES $133,199
--------------------
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 $5,600,234
--------------------
EQUITY (DEFICIT)
48 Preferred Stock $80,000
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49 Common Stock $28,846
------------------------------------------- --------------------
50 Additional Paid-In Capital $18,461,441
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51 Accumulated Deficit ($18,637,414)
------------------------------------------- --------------------
52 Market value adjustment ($34,743)
--------------------
53 TOTAL EQUITY (DEFICIT) ($101,870)
--------------------
54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $5,498,364
--------------------
--------------------
SCHEDULES
(GENERAL BUSINESS CASE)
($______ )
SCHEDULE A
ACCOUNTS RECEIVABLE(NET)/PAYABLE
ACCOUNTS ACCOUNTS PAYABLE PAST DUE
Receivables and Payables Ageings RECEIVABLE [POST PETITION] POST PETITION DEBT
---------- --------------- -----------------
0 -30 Days $349
---------------- ----------------)
31-60 Days )
---------------- ----------------) $0
61-90 Days )---------------------------
---------------- ----------------)
$75,156
91+ Days ---------------- ----------------
----------------
Total accounts receivable/payable $75,156 $349
---------------- ----------------
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
--------------------------------- ------------------
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 ---------------------------
Other - ----------------- Personal Use ---------------------------
Explain
----------------------
--------------------------------- Cost of Goods Sold $0
---------------------------
---------------------------
TOTAL $0
-----------------
-----------------
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
---- ----
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
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TOTAL $0 $0
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SCHEDULE D
OTHER DEPRECIABLE ASSETS
DESCRIPTION COST MARKET VALUE
----------- ---- ------------
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
---------------------- -----------------------
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 August, 1998
------------
$
-------------
CURRENT MONTH CUMULATIVE NEXT MONTH
- --------------------------------------------------------- (CASE TO DATE) FORECAST
ACTUAL FORECAST VARIANCE -------------- ----------
- ------ -------- --------
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
- ----------- ----------- ----------- ----------- -----------
$0 6 Interest $92
- ----------- ----------- ----------- ----------- -----------
7 Other Income:
$0 8
- ----------- ----------- ----------- ----------- -----------
$0 9
- ----------- ----------- ----------- ----------- -----------
$0 $0 $0 10 TOTAL REVENUES ($61,179) $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
- ----------- ----------- ----------- ----------- -----------
$223 ($223) 20 Other Administrative $1,721
- ----------- ----------- ----------- ----------- -----------
$0 21 Interest
- ----------- ----------- ----------- ----------- -----------
22 Other Expenses:
$0 23 Storage Rental $1,601
- ----------- ----------- ----------- ----------- -----------
$0 24 Accounting $1,510
- ----------- ----------- ----------- ----------- -----------
$0 25 Press Release $625
- ----------- ----------- ----------- ----------- -----------
$126 ($126) 26 Telecommunications $4,945
- ----------- ----------- ----------- ----------- -----------
$0 27 SEC Reporting $2,999
- ----------- ----------- ----------- ----------- -----------
$0 28 Litigation Costs $1,193
- ----------- ----------- ----------- ----------- -----------
$0 29 ----------------------
- ----------- ----------- ----------- ----------- -----------
$0 30 ----------------------
- ----------- ----------- ----------- ----------- -----------
$349 $0 ($349) 31 TOTAL EXPENSES $14,594 $0
- ----------- ----------- ----------- ----------- -----------
($349) $0 ($349) 32 SUBTOTAL ($75,773) $0
- ----------- ----------- ----------- ----------- -----------
REORGANIZATION ITEMS
$13,240 ($13,240) 33 Professional Fees $225,118
- ----------- ----------- ----------- ----------- -----------
$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
- ----------- ----------- ----------- ----------- -----------
$0 37 US Trustee Fees $1,000
- ----------- ----------- ----------- ----------- -----------
$0 38 ----------------------
- ----------- ----------- ----------- ----------- -----------
$13,240 $0 ($13,240) 39 TOTAL REORGANIZATION ITEMS $221,526 $0
- ----------- ----------- ----------- ----------- -----------
40 NET PROFIT (LOSS) BEFORE FEDERAL
($13,589) $0 ($13,589) & STATE TAXES ($297,299) $0
- ----------- ----------- ----------- ----------- -----------
$0 41 Federal & State Income Taxes
- ----------- ----------- ----------- ----------- -----------
($13,589) $0 ($13,589) 42 NET PROFIT (LOSS) ($297,299) $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 August, 1998
------------
CASH BALANCE BEGINNING OF MONTH $14,308
------------
CASH RECEIPTS (1) $0
------------
CASH DISBURSEMENTS (1) $3,718
------------
EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS ($3,718)
------------
CASH BALANCE END OF MONTH $10,590
------------
------------
RECAPITULATION OF FUNDS HELD AT END OF MONTH
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ACCOUNT 1 ACCOUNT 2 ACCOUNT 3
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BANK Wells Fargo Bank of America
----------------- ----------------- -----------------
ACCOUNT TYPE General Murray&Murray Trust
----------------- ----------------- -----------------
ACCOUNT NO. 0114-458243 00357-63272
----------------- ----------------- -----------------
ACCOUNT PURPOSE Operations None
----------------- ----------------- -----------------
BALANCE, END OF MONTH $10,590 $0
----------------- ----------------- -----------------
TOTAL FUNDS ON HAND FOR ALL ACCOUNTS $10,590
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(1) Excluding bank transfers between your accounts.