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 November, 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) $157,279 $159,920 $245,867
----------------- ----------------- -----------------
Total Assets (Market Value) $3,457,279 $3,459,920 $5,665,985
----------------- ----------------- -----------------
Current Liabilities $178,591 $165,504 $0
----------------- ----------------- -----------------
Total Liabilities $5,645,626 $5,632,539 $5,467,035
----------------- ----------------- -----------------
PETITION
CURRENT PRIOR DATE TO
3. STATEMENT OF CASH RECEIPTS & DISBURSEMENTS FOR MONTH MONTH MONTH MONTH END
----- ----- ---------
a. Total Receipts $0 $130,000 $157,213
---------------- ----------------- -----------------
b. Total Disbursements $2,641 $720 $36,415
---------------- ----------------- -----------------
c. Excess (Deficiency) of Receipts Over Disbursements (a - b) ($2,641) $129,280 $120,798
---------------- ----------------- -----------------
d. Cash Balance Beginning of Month $139,920 $10,640 -----------------
---------------- -----------------
e. Cash Balance End of Month (c + d) $137,279 $139,920
---------------- -----------------
---------------- -----------------
4. POST-PETITION LIABILITIES & RECEIVABLES RECEIVABLES LIABILITIES
----------- -----------
Balance at End of Previous Month $20,000 $141,548
---------------- -----------------
Balance at End of Current Month $20,000 $178,591
---------------- -----------------
5. PAST DUE POST-PETITION LIABILITIES
Balance at End of Previous Month (over 30 days) $433
----------------
Balance at End of Current Month (over 30 days) $433
----------------
YES NO
6. Are all federal, state, and local taxes current? (if no, attach schedule of
unpaid items) X
----------------- -----------------
7. Have any payments been made to pre-petition creditors, other than payments in
the normal course to secured creditors or lessors? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
----------------- -----------------
8. Have any payments been made to officers, insiders, shareholders, relatives?
(if yes, attach listing including date of payment, amount and reason for payment,
and name of payee) X
----------------- -----------------
9. Have any payments been made to professionals? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
----------------- -----------------
10. If you answered yes to line 7,8, or 9, were all such payments approved by
the court? #----------------- -----------------
11. Is the estate insured for replacement cost of assets and for general liability? N/A
----------------- -----------------
12. Are U.S. Trustee quarterly fees current? X
----------------- -----------------
I declare under penalty of perjury that I have reviewed the above summary
and attached financial statements, and after making reasonable inquiry
believe that these documents are correct.
Date: December 18, 1998 Richard J Redett
------------------------- -----------------------------------
Responsible Individual
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED November, 1998
--------------
($ )
--------
ASSETS
FROM SCHEDULES MARKET VALUE
-------------- ------------
CURRENT ASSETS
1 Cash and cash equivalents - unrestricted $137,279
---------------------
2 Cash and cash equivalents - restricted $0
---------------------
3 Accounts receivable (net) A $20,000
---------------------
4 Inventory B $0
---------------------
5 Prepaid expenses $0
---------------------
6 Other:
---------------------------------------------------- ---------------------
7
----------------------------------------------------------- ---------------------
8 TOTAL CURRENT ASSETS $157,279
---------------------
PROPERTY AND EQUIPMENT (MARKET VALUE)
9 Real property C $0
---------------------
10 Machinery and equipment D $0
---------------------
11 Furniture and fixtures D $0
---------------------
12 Office equipment D $0
---------------------
13 Leasehold improvements D $0
---------------------
14 Vehicles D $0
---------------------
15 Other: D
---------------------------------------------------- ---------------------
16 D
----------------------------------------------------------- ---------------------
17 D
----------------------------------------------------------- ---------------------
18 D
----------------------------------------------------------- ---------------------
19 D
----------------------------------------------------------- ---------------------
20 TOTAL PROPERTY AND EQUIPMENT $0
---------------------
OTHER ASSETS
21 Notes receivable-net of allowances $3,000,000
----------------------------------------------------------- ---------------------
22 Investment-NST $300,000
----------------------------------------------------------- ---------------------
23 Investment-subs $0
----------------------------------------------------------- ---------------------
24 Accounts receivable-intercompany net of allowances $0
----------------------------------------------------------- ---------------------
25 TOTAL OTHER ASSETS $3,300,000
---------------------
26 TOTAL ASSETS $3,457,279
---------------------
---------------------
NOTE:
Indicate the method used to estimate the market value of assets (e.g.,
appraisals; familiarity with comparable market prices, etc.) and the
date the value was determined. Estimated based on experience
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($ )
--------
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 $433
---------------------
33 Real property lease arrearage
---------------------
34 Personal property lease arrearage
---------------------
35 Accrued professional fees $178,158
---------------------
36 Current portion of long-term debt (due within 12 months)
---------------------
37 Other:
---------------------------------------- ---------------------
38
----------------------------------------------------------- ---------------------
39
----------------------------------------------------------- ---------------------
40 TOTAL CURRENT LIABILITIES $178,591
---------------------
41 LONG-TERM DEBT, NET OF CURRENT PORTION
---------------------
42 TOTAL POST-PETITION LIABILITIES $178,591
---------------------
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 $5,645,626
---------------------
EQUITY (DEFICIT)
48 Preferred Stock $80,000
---------------------------------------------------------------- ----------------------
49 Common Stock $28,846
---------------------------------------------------------------- ----------------------
50 Additional Paid-In Capital $18,461,441
---------------------------------------------------------------- ----------------------
51 Accumulated Deficit ($20,723,891)
---------------------------------------------------------------- ----------------------
52 Market value adjustment ($34,743)
----------------------
53 TOTAL EQUITY (DEFICIT) ($2,188,347)
----------------------
54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $3,457,279
----------------------
----------------------
SCHEDULES
(GENERAL BUSINESS CASE)
($ )
-------
SCHEDULE A
ACCOUNTS RECEIVABLE(NET)/PAYABLE
ACCOUNTS ACCOUNTS PAYABLE PAST DUE
Receivables and Payables Ageings RECEIVABLE [POST PETITION] POST PETITION DEBT
---------- ---------------- ------------------
0 -30 Days
----------------- ------------------
--
31-60 Days
----------------- ------------------
61-90 Days $84 $433
----------------- ------------------ --------------------
91+ Days $20,000 $349
----------------- ------------------ --
Total accounts receivable/payable $20,000 $433
----------------- ------------------
------------------
Allowance for doubtful accounts
-----------------
Accounts receivable (net) $20,000
-----------------
-----------------
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 - -----------------------
Product for resale Manufacturing overhead
--------------------- -----------------------
Manufacturer - Freight in
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 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
- --------------------------------------------------------------- -------------------- -----------------------
- --------------------------------------------------------------- -------------------- -----------------------
- --------------------------------------------------------------- -------------------- -----------------------
- --------------------------------------------------------------- -------------------- -----------------------
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 November, 1998
--------------
$
----------------
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
- ----------- ----------- ----------- ------------ -------------
$0 6 Interest $92
- ----------- ----------- ----------- ------------ -------------
7 Other Income:
$0 8 Miscellaneous $996
- ----------- ----------- ----------- ----------------------------------------- ------------ -------------
$0 9 Insurance Settlement $130,000
- ----------- ----------- ----------- ----------------------------------------- ------------ -------------
$0 $0 $0 10 TOTAL REVENUES $69,817 $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
- ----------- ----------- ----------- ------------ --------------
$0 20 Other Administrative $1,735
- ----------- ----------- ----------- ------------ --------------
$0 21 Write-off Investment Subs $112,618
- ----------- ----------- ----------- ------------ --------------
22 Other Expenses:
$1,650 ($1,650) 23 Storage Rental $3,251
- ----------- ----------- ----------- ------------------------------------------ ------------ --------------
$0 24 Accounting $1,510
- ----------- ----------- ----------- ------------------------------------------ ------------ --------------
$0 25 Press Release $625
- ----------- ----------- ----------- ------------------------------------------ ------------ --------------
$0 26 Telecommunications $5,015
- ----------- ----------- ----------- ------------------------------------------ ------------ --------------
$991 ($991) 27 SEC Reporting $5,406
- ----------- ----------- ----------- ------------------------------------------ ------------ --------------
$0 28 Litigation Costs $1,193
- ----------- ----------- ----------- ------------------------------------------ ------------ --------------
$0 29 Write-off of Accounts Receivable $55,156
- ----------- ----------- ----------- ------------------------------------------ ------------ --------------
$0 30 Writedown of Notes Receivable $2,000,000
- ----------- ----------- ----------- ------------------------------------------ ------------ --------------
$2,641 $0 ($2,641) 31 TOTAL EXPENSES $2,186,509 $0
- ----------- ----------- ----------- ------------ --------------
($2,641) $0 ($2,641) 32 SUBTOTAL ($2,116,692) $0
- ----------- ----------- ----------- ------------ --------------
REORGANIZATION ITEMS
$13,087 ($13,087) 33 Professional Fees $270,426
- ----------- ----------- ----------- ------------ --------------
$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 $1,250
- ----------- ----------- ----------- ----------------------------------------- ------------ --------------
$0 38 Gain or (Loss) from Sale of Investments
- ----------- ----------- ----------- ----------------------------------------- ------------ --------------
$13,087 $0 ($13,087) 39 TOTAL REORGANIZATION ITEMS $267,084 $0
- ----------- ----------- ----------- ------------ --------------
($15,728) $0 ($15,728) 40 NET PROFIT (LOSS) BEFORE FEDERAL & STATE TAXES ($2,383,776) $0
- ----------- ----------- ----------- ------------ --------------
$0 41 Federal & State Income Taxes
- ----------- ----------- ----------- ------------ --------------
($15,728) $0 ($15,728) 42 NET PROFIT (LOSS) ($2,383,776) $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 November, 1998
--------------
CASH BALANCE BEGINNING OF MONTH $139,920
---------------------
CASH RECEIPTS (1) $0
---------------------
CASH DISBURSEMENTS (1) $2,641
---------------------
EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS ($2,641)
---------------------
CASH BALANCE END OF MONTH $137,279
---------------------
---------------------
RECAPITULATION OF FUNDS HELD AT END OF MONTH
- --------------------------------------------
ACCOUNT 1 ACCOUNT 2 ACCOUNT 3
--------- --------- ---------
BANK Wells Fargo
---------------------- ---------------------- ---------------------
ACCOUNT TYPE Checking
---------------------- ---------------------- ---------------------
ACCOUNT NO. 0114-458243
---------------------- ---------------------- ---------------------
ACCOUNT PURPOSE General
---------------------- ---------------------- ---------------------
BALANCE, END OF MONTH $137,279
---------------------- ---------------------- ---------------------
TOTAL FUNDS ON HAND FOR ALL ACCOUNTS $137,279
----------------------
----------------------
(1) Excluding bank transfers between your accounts.