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 October, 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) $159,920 $30,640 $245,867
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Total Assets (Market Value) $3,459,920 $3,443,258 $5,665,985
----------------- ----------------- -----------------
Current Liabilities $165,504 $141,548 $0
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Total Liabilities $5,632,539 $5,608,583 $5,467,035
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PETITION
CURRENT PRIOR DATE TO
3. STATEMENT OF CASH RECEIPTS & DISBURSEMENTS FOR MONTH MONTH MONTH MONTH END
----- ----- ---------
a. Total Receipts $130,000 $996 $157,213
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b. Total Disbursements $720 $946 $33,774
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c. Excess (Deficiency) of Receipts Over Disbursements (a - b) $129,280 $50 $123,439
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d. Cash Balance Beginning of Month $10,640 $10,590
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e. Cash Balance End of Month (c + d) $139,920 $10,640
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4. POST-PETITION LIABILITIES & RECEIVABLES RECEIVABLES LIABILITIES
----------- -----------
Balance at End of Previous Month $20,000 $141,548
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Balance at End of Current Month $20,000 $165,504
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5. PAST DUE POST-PETITION LIABILITIES
Balance at End of Previous Month (over 30 days) $433
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Balance at End of Current Month (over 30 days) $433
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YES NO
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6. Are all federal, state, and local taxes current? (if no, attach schedule
of unpaid items) X
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7. Have any payments been made to pre-petition creditors, other than payments
in the normal course to secured creditors or lessors? (if yes, attach
listing including date of payment, amount of payment and name of payee) X
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8. Have any payments been made to officers, insiders, shareholders, relatives?
(if yes, attach listing including date of payment, amount and reason for
payment, and name of payee) X
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9. Have any payments been made to professionals? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
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10. If you answered yes to line 7,8, or 9, were all such payments approved by
the court? #
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11. Is the estate insured for replacement cost of assets and for general liability? N/A
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12. Are U.S. Trustee quarterly fees current? X
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I declare under penalty of perjury that I have reviewed the above summary
and attached financial statements, and after making reasonable inquiry
believe that these documents are correct.
Date: November 20, 1998 Richard J Redett
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Responsible Individual
Effective 1/1/95
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED October, 1998
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($ )
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ASSETS
FROM SCHEDULES MARKET VALUE
CURRENT ASSETS -------------- ------------
1 Cash and cash equivalents - unrestricted $139,920
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2 Cash and cash equivalents - restricted $0
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3 Accounts receivable (net) A $20,000
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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 $159,920
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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 $3,000,000
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22 Investment-NST $300,000
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23 Investment-subs $0
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24 Accounts receivable-intercompany net of allowances $0
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25 TOTAL OTHER ASSETS $3,300,000
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26 TOTAL ASSETS $3,459,920
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NOTE:
Indicate the method used to estimate the market value of assets
(e.g., appraisals; familiarity with comparable market prices, etc.)
and the date the value was determined. Estimated based on
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experience
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Effective 1/1/95
LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($ )
---------
LIABILITIES FROM SCHEDULES
POST-PETITION --------------
CURRENT LIABILITIES
27 Salaries and wages
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28 Payroll taxes
-----------------------
29 Real and personal property taxes
-----------------------
30 Income taxes
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31 Notes payable (short term)
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32 Accounts payable (trade) A $433
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33 Real property lease arrearage
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34 Personal property lease arrearage
-----------------------
35 Accrued professional fees $165,071
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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 ---------------------------------------------------------------- -----------------------
39 ---------------------------------------------------------------- -----------------------
40 TOTAL CURRENT LIABILITIES $165,504
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41 LONG-TERM DEBT, NET OF CURRENT PORTION
-----------------------
42 TOTAL POST-PETITION LIABILITIES $165,504
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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 $5,632,539
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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 ($20,708,163)
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52 Market value adjustment ($34,743)
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53 TOTAL EQUITY (DEFICIT) ($2,172,619)
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54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $3,459,920
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-----------------------
Effective 1/1/95
SCHEDULES
(GENERAL BUSINESS CASE)
($ )
---------
SCHEDULE A
ACCOUNTS RECEIVABLE(NET)/PAYABLE
ACCOUNTS ACCOUNTS PAYABLE PAST DUE
Receivables and Payables Ageings RECEIVABLE [POST PETITION] POST PETITION DEBT
---------- --------------- -----------------------
0 -30 Days
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31-60 Days $84
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61-90 Days $349 $433
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91+ Days $20,000
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Total accounts receivable/payable $20,000 $433
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Allowance for doubtful accounts --------------------
-----------------
Accounts receivable (net) $20,000
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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
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Product for resale Other:
---------------------
------------------------ -----------------------
Manufacturer -
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Raw materials
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Work-in-progress Less -
---------------------
Finished goods Inventory End of Month
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Shrinkage
-----------------------
Other - Personal Use
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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
- --------------------------- ---------------------------
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
---- market
Quarterly --------------------
---- Retail method
Semi-annually --------------------
----
Annually Other -
---- --------------------
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
----------- ---- ------------
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
-------------------- ---------------------
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 $3,000,000 as the Allowed Amount.
SCHEDULE F
RENTAL INCOME INFORMATION
Not Applicable to General Business Cases.
Effective 1/1/95
STATEMENT OF OPERATIONS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED October, 1998
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$
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CURRENT MONTH
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ACTUAL FORECAST VARIANCE
$0 1
- -------------- --------------- ---------------
$0 2
- -------------- --------------- ---------------
$0 3
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$0 4
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$0 5
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$0 6
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7
$0 8
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$130,000 $130,000 9
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$130,000 $0 $130,000 10
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$0 11
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$0 12
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$0 13
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$0 14
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$0 15
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$0 16
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$0 17
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$0 18
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$0 19
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$0 20
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$112,618 ($112,618) 21
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22
$0 23
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$0 24
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$0 25
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$0 26
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$470 ($470) 27
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$0 28
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$0 29
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$0 30
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$113,088 $0 ($113,088) 31
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$16,912 $0 $16,912 32
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$23,956 ($23,956) 33
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$0 34
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$0 35
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$0 36
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$250 ($250) 37
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$0 38
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$24,206 $0 ($24,206) 39
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($7,294) $0 ($7,294) 40
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$0 41
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($7,294) $0 ($7,294) 42
- -------------- --------------- ---------------
- -------------- --------------- ---------------
CUMULATIVE NEXT MONTH
(CASE TO DATE) FORECAST
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REVENUES
1 Gross Sales $7,000
-------------------- ---------------------
2 less: Sales Returns & Allowances
-------------------- ---------------------
3 Net Sales $7,000 $0
-------------------- ---------------------
4 less: Cost of Goods Sold (Schedule "B") $68,271
-------------------- ---------------------
5 Gross Profit ($61,271) $0
-------------------- ---------------------
6 Interest $92
-------------------- ---------------------
7 Other Income:
8 Miscellaneous $996
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9 Insurance Settlement $130,000
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10 TOTAL REVENUES $69,817 $0
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EXPENSES
11 Compensation to Owner(s)/Officer(s)
-------------------- ---------------------
12 Salaries/Commissions
-------------------- ---------------------
13 Management Fees
-------------------- ---------------------
14 Depreciation
-------------------- ---------------------
15 Taxes:
-------------------- ---------------------
16 Employer Payroll Taxes
-------------------- ---------------------
17 Real Property Taxes
-------------------- ---------------------
18 Other Taxes
-------------------- ---------------------
19 Other Selling
-------------------- ---------------------
20 Other Administrative $1,735
-------------------- ---------------------
21 Write-off Investment Subs $112,618
-------------------- ---------------------
22 Other Expenses:
23 Storage Rental $1,601
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24 Accounting $1,510
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25 Press Release $625
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26 Telecommunications $5,015
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27 SEC Reporting $4,415
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28 Litigation Costs $1,193
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29 Write-off of Accounts Receivable $55,156
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30 Writedown of Notes Receivable $2,000,000
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31 TOTAL EXPENSES $2,183,868 $0
-------------------- ---------------------
32 SUBTOTAL ($2,114,051) $0
-------------------- ---------------------
REORGANIZATION ITEMS
33 Professional Fees $257,339
-------------------- ---------------------
34 Provisions for Rejected Executory Contracts
-------------------- ---------------------
Interest Earned on Accumulated Cash
35 Resulting from Chp 11 Case
-------------------- ---------------------
36 Gain or (Loss) from Sale of Equipment $4,592
-------------------- ---------------------
37 US Trustee Fees $1,250
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38 Gain or (Loss) from Sale of Investments
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39 TOTAL REORGANIZATION ITEMS $253,997 $0
-------------------- ---------------------
40 NET PROFIT (LOSS) BEFORE FEDERAL & STATE TAXES ($2,368,048) $0
-------------------- ---------------------
41 Federal & State Income Taxes
-------------------- ---------------------
42 NET PROFIT (LOSS) ($2,368,048) $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 October, 1998
----------------------
CASH BALANCE BEGINNING OF MONTH $10,640
--------------------
CASH RECEIPTS (1) $130,000
--------------------
CASH DISBURSEMENTS (1) $720
--------------------
EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS $129,280
--------------------
CASH BALANCE END OF MONTH $139,920
--------------------
--------------------
RECAPITULATION OF FUNDS HELD AT END OF MONTH
ACCOUNT 1 ACCOUNT 2 ACCOUNT 3
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BANK Wells Fargo
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ACCOUNT TYPE Checking
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ACCOUNT NO. 0114-458243
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ACCOUNT PURPOSE General
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BALANCE, END OF MONTH $139,920
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TOTAL FUNDS ON HAND FOR ALL ACCOUNTS $139,920
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(1) Excluding bank transfers between your accounts.
Effective 1/1/95