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 January, 1999
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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) $140,389 $140,432 $245,867
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Total Assets (Market Value) $3,440,389 $3,440,432 $5,665,985
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Current Liabilities $173,797 $168,855 $0
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Total Liabilities $5,640,832 $5,635,890 $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 $0 $0 $157,213
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b. Total Disbursements $43 $16,847 $53,305
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c. Excess (Deficiency) of Receipts Over Disbursements (a - b) ($43) ($16,847) $103,908
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d. Cash Balance Beginning of Month $120,432 $137,279 -----------------
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e. Cash Balance End of Month (c + d) $120,389 $120,432
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4. POST-PETITION LIABILITIES & RECEIVABLES RECEIVABLES LIABILITIES
----------- -----------
Balance at End of Previous Month $20,000 $168,855
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Balance at End of Current Month $20,000 $173,797
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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) $0
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YES NO
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6. Are all federal, state, and local taxes current? (if no, attach schedule of unpaid items) X
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7. Have any payments been made to pre-petition creditors, other than payments in
the normal course to secured creditors or lessors? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
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8. Have any payments been made to officers, insiders, shareholders, relatives?
(if yes, attach listing including date of payment, amount and reason for
payment, and name of payee) X
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9. Have any payments been made to professionals? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
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10. If you answered yes to line 7,8, or 9, were all such payments approved by the court? # N/A
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11. Is the estate insured for replacement cost of assets and for general liability? N/A
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12. Are U.S. Trustee quarterly fees current? X
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I declare under penalty of perjury that I have reviewed the above summary
and attached financial statements, and after making reasonable inquiry
believe that these documents are correct.
Date: February 16, 1999 Richard J Redett
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Responsible Individual
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED January, 1999
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($ )
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ASSETS
FROM SCHEDULES MARKET VALUE
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CURRENT ASSETS
1 Cash and cash equivalents - unrestricted $120,389
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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 $140,389
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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 $3,440,389
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NOTE:
Indicate the method used to estimate the market value of
assets (e.g., appraisals; familiarity with comparable market
prices, etc.) and the date the value was determined.
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LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($ )
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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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32 Accounts payable (trade) A
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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 $173,797
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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 $173,797
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41 LONG-TERM DEBT, NET OF CURRENT PORTION
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42 TOTAL POST-PETITION LIABILITIES $173,797
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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 $5,640,832
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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 ($20,735,987)
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52 Market value adjustment ($34,743)
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53 TOTAL EQUITY (DEFICIT) ($2,200,443)
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54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $3,440,389
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SCHEDULES
(GENERAL BUSINESS CASE)
($ )
---------
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
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61-90 Days $0
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91+ Days $20,000
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Total accounts receivable/payable $20,000 $0
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Allowance for doubtful accounts
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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
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Product for resale Direct labor
---------------------- -------------------------
Manufacturing overhead
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Distribution - Freight in
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Product for resale Other:
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Manufacturer -
---------------------------- -------------------------
Raw materials
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Work-in-progress Less -
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Finished goods Inventory End of Month
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Shrinkage
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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
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How often do you take a complete physical inventory? Valuation methods -
FIFO cost
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Weekly LIFO cost
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Monthly Lower of cost or
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Quarterly market
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Semi-annually Retail method
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Annually
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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
- ----------- ---- ------------
None
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TOTAL $0 $0
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SCHEDULE D
OTHER DEPRECIABLE ASSETS
DESCRIPTION COST MARKET VALUE
- ----------- ---- ------------
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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- --------------------------------------------------------------------- ----------------------- -----------------------
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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 -
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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 $3,000,000 as the Allowed Amount.
SCHEDULE F
RENTAL INCOME INFORMATION
Not Applicable to General Business Cases.
STATEMENT OF OPERATIONS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED January, 1999
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$
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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
- ---------- --------- --------- ------------- ------------
$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
- ---------- --------- --------- ------------- ------------
$43 ($43) 20 Other Administrative $1,820
- ---------- --------- --------- ------------- ------------
$0 21 Write-off Investment Subs $112,618
- ---------- --------- --------- ------------- ------------
22 Other Expenses:
$0 23 Storage Rental $3,251
- ---------- --------- --------- ------------------------------------------------ ------------- ------------
$0 24 Accounting $1,510
- ---------- --------- --------- ------------------------------------------------ ------------- ------------
$0 25 Press Release $725
- ---------- --------- --------- ------------------------------------------------ ------------- ------------
$0 26 Telecommunications $5,015
- ---------- --------- --------- ------------------------------------------------ ------------- ------------
$0 27 SEC Reporting $5,870
- ---------- --------- --------- ------------------------------------------------ ------------- ------------
$0 28 Litigation Costs $1,193
- ---------- --------- --------- ------------------------------------------------ ------------- ------------
$0 29 Write-off of Accounts Receivable $55,156
- ---------- --------- --------- ------------------------------------------------ ------------- ------------
$0 30 Writedown of Notes Receivable $2,000,000
- ---------- --------- --------- ------------------------------------------------ ------------- ------------
$43 $0 ($43) 31 TOTAL EXPENSES $2,187,158 $0
- ---------- --------- --------- ------------- ------------
($43) $0 ($43) 32 SUBTOTAL ($2,117,341) $0
- ---------- --------- --------- ------------- ------------
REORGANIZATION ITEMS
$4,942 ($4,942) 33 Professional Fees $281,873
- ---------- --------- --------- ------------- ------------
$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
- ---------- --------- --------- ------------------------------------------------ ------------- ------------
$4,942 $0 ($4,942) 39 TOTAL REORGANIZATION ITEMS $278,531 $0
- ---------- --------- --------- ------------- ------------
($4,985) $0 ($4,985) 40 NET PROFIT (LOSS) BEFORE FEDERAL & STATE TAXES ($2,395,872) $0
- ---------- --------- --------- ------------- ------------
$0 41 FEDERAL & STATE INCOME TAXES
- ---------- --------- --------- ------------- ------------
($4,985) $0 ($4,985) 42 NET PROFIT (LOSS) ($2,395,872) $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 January, 199
---------------------
CASH BALANCE BEGINNING OF MONTH $120,432
----------------------
Cash Receipts (1) $0
----------------------
Cash Disbursements (1) $43
----------------------
Excess (Deficiency) of Receipts Over Disbursements ($43)
----------------------
Cash Balance End of Month $120,389
======================
RECAPITULATION OF FUNDS HELD AT END OF MONTH
ACCOUNT 1 ACCOUNT 2 ACCOUNT 3
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Bank Wells Fargo Mallesons Stephen Jaques
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Account Type Checking Trust Account
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Account No. 0114-458243
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Account Purpose General Litigation Turst
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Balance, End of Month $104,154 $16,235
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Total Funds on Hand for all Accounts $120,389
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(1) Excluding bank transfers between your accounts.