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 February, 1999
-------------------------
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) $219,169 $140,389 $245,867
------------ ------------- ----------
Total Assets (Market Value) $3,219,169 $3,440,389 $5,665,985
------------ ------------- ----------
Current Liabilities $192,287 $173,797 $0
------------ ------------- ----------
Total $5,659,322 $5,640,832 $5,467,035
------------ ------------- ----------
PETITION
CURRENT PRIOR DATE TO
3. STATEMENT OF CASH RECEIPTS & DISBURSEMENTS FOR MONTH MONTH MONTH MONTH END
----- ----- ---------
a. Total Receipts $100,000 $0 $257,213
--------- ------------ ----------
b. Total Disbursements $1,220 $43 $54,525
--------- ------------- ---------
c. Excess (Deficiency) of Receipts Over
Disbursements (a - b) $98,780 ($43) $202,688
--------- ------------- ---------
d. Cash Balance Beginning of Month $120,389 $120,432
--------- -------------
e. Cash Balance End of Month (c + d) $219,169 $120,389
--------- -------------
--------- -------------
4. POST-PETITION LIABILITIES & RECEIVABLES RECEIVABLES LIABILITIES
----------- -----------
Balance at End of Previous Month $0 $173,797
---------- -----------
Balance at End of Current Month $0 $192,287
---------- -----------
5. PAST DUE POST-PETITION LIABILITIES
Balance at End of Previous Month (over $0
30 days)
----------
Balance at End of Current Month (over $0
30 days)
----------
YES NO
--- --
6. Are all federal, state, and local taxes current? (if no, attach
schedule of unpaid items) X
--------- -------
7. Have any payments been made to pre-petition creditors, other than
payments in the normal course to secured
creditors or lessors? (if yes, attach listing including date of payment,
amount of payment and name of payee) X
--------- -------
8. Have any payments been made to officers, insiders, shareholders,
relatives? (if yes, attach listing including date of
payment, amount and reason for payment, and name of
payee) X
--------- -------
9. Have any payments been made to professionals? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
--------- -------
10. If you answered yes to line 7,8, or 9, were all such payments
approved by the court? N/A
--------- -------
11. Is the estate insured for replacement cost of assets and for general
liability? N/A
--------- --------
12. Are U.S. Trustee quarterly fees current? X
--------- --------
I declare under penalty of perjury that I have reviewed the above summary
and attached financial statements, and after making reasonable inquiry
believe that these documents are correct.
Date: March 17, 1999 /s/ Richard J Redett
----------------- --------------------------------------------
Responsible Individual
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED February, 1999
---------------
($ )
------------
ASSETS
FROM SCHEDULES MARKET VALUE
-------------- -------------
CURRENT ASSETS
1 Cash and cash equivalents - unrestricted $219,169
------------------------
2 Cash and cash equivalents - restricted $0
------------------------
3 Accounts receivable (net) A $0
------------------------
4 Inventory B $0
------------------------
5 Prepaid expenses $0
------------------------
6 Other:
---------------------------------------------------- ------------------------
7
------------------------------------------------------------ ------------------------
8 TOTAL CURRENT ASSETS $219,169
------------------------
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 $0
------------------------------------------------------------ ------------------------
23 Investment-subs $0
------------------------------------------------------------ ------------------------
24 Accounts receivable-intercompany net of allowances $0
------------------------------------------------------------ ------------------------
25 TOTAL OTHER ASSETS $3,000,000
------------------------
26 TOTAL ASSETS $3,219,169
------------------------
------------------------
NOTE:
Indicate the method used to estimate the market value of assets
(e.g., appraisals; familiarity with comparable
market prices, etc.) and the date the value was determined.
---------------------------------------------------------------
---------------------------------------------------------------
---------------------------------------------------------------
---------------------------------------------------------------
---------------------------------------------------------------
---------------------------------------------------------------
LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($ )
--------
LIABILITIES
POST-PETITION FROM SCHEDULES
--------------
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
-----------------------
33 Real property lease arrearage
-----------------------
34 Personal property lease arrearage
-----------------------
35 Accrued professional fees $192,287
-----------------------
36 Current portion of long-term debt (due within 12
months)
-----------------------
37 Other:
--------------------------------------------- -----------------------
38
------------------------------------------------------------ -----------------------
39
------------------------------------------------------------ -----------------------
40 TOTAL CURRENT LIABILITIES $192,287
-----------------------
41 LONG-TERM DEBT, NET OF CURRENT PORTION
-----------------------
42 TOTAL POST-PETITION LIABILITIES $192,287
-----------------------
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 $5,659,322
-----------------------
EQUITY (DEFICIT)
48 Preferred Stock $80,000
------------------------------------------------------------ -----------------------
49 Common Stock $28,846
------------------------------------------------------------ -----------------------
50 Additional Paid-In Capital $18,461,441
------------------------------------------------------------ -----------------------
51 Accumulated Deficit ($20,975,697)
------------------------------------------------------------ -----------------------
52 Market value adjustment ($34,743)
-----------------------
53 TOTAL EQUITY (DEFICIT) ($2,440,153)
-----------------------
54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $3,219,169
-----------------------
-----------------------
SCHEDULES
(GENERAL BUSINESS CASE)
($ )
--------
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 $0
------------- ----------------- --------------------
91+ Days
------------- -----------------
Total accounts receivable/payable $0 $0
------------- -----------------
Allowance for doubtful accounts ------------- -----------------
Accounts receivable (net) $0
-------------
-------------
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 Inventory End of
goods 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 Indicate by a checkmark method of inventory
inventory system? valuation used.
Yes No
---- ---
How often do you take a complete physical Valuation methods -
inventory?
FIFO cost
-------------------
Weekly LIFO cost
---- -------------------
Monthly Lower of cost or
---- market
Quarterly -------------------
---- Retail method
Semi-annually -------------------
----
Annually
----
Other -
-------------------
Date of last physical Unknown Explain
inventory was
---------------
-----------------------------------
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 February, 1999
-----------------
$
----------------
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 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 $1,820
- ----------- ------------ ------------ -------------------- ----------
$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
- ----------- ------------ ------------ ----------------------------------------------- -------------------- ----------
$720 ($720) 27 SEC Reporting $6,590
- ----------- ------------ ------------ ----------------------------------------------- -------------------- ----------
$0 28 Litigation Costs $1,193
- ----------- ------------ ------------ ----------------------------------------------- -------------------- ----------
$0 29 Write-off of Accounts Receivable $55,156
- ----------- ------------ ------------ ----------------------------------------------- -------------------- ----------
$0 30 Writedown of Notes Receivable $2,000,000
- ----------- ------------ ------------ ----------------------------------------------- -------------------- ----------
$720 $0 ($720) 31 TOTAL EXPENSES $2,187,878 $0
- ----------- ------------ ------------ -------------------- ----------
($720) $0 ($720) 32 SUBTOTAL ($2,118,061) $0
- ----------- ------------ ------------ -------------------- ----------
REORGANIZATION ITEMS
$18,470 ($18,470) 33 Professional Fees $300,343
- ----------- ------------ ------------ -------------------- -----------
$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
- ----------- ------------ ------------ -------------------- -----------
$500 ($500) 37 US Trustee Fees $1,750
- ----------- ------------ ------------ ---------------------------------------------- -------------------- -----------
$220,000 ($220,000) 38 Loss from Sale of Investments $220,000
- ----------- ------------ ------------ ---------------------------------------------- -------------------- -----------
$238,970 $0 ($238,970) 39 TOTAL REORGANIZATION ITEMS $517,501 $0
- ----------- ------------ ------------ -------------------- -----------
($239,690) $0 ($239,690) 40 NET PROFIT (LOSS) BEFORE FEDERAL & STATE TAXES ($2,635,562) $0
- ----------- ------------ ------------ -------------------- -----------
$0 41 Federal & State Income Taxes
- ----------- ------------ ------------ -------------------- -----------
($239,690) $0 ($239,690) 42 NET PROFIT (LOSS) ($2,635,562) $0
- ----------- ------------ ------------ -------------------- -----------
- ----------- ------------ ------------ -------------------- -----------
EXPLANATION OF VARIANCE TO STATEMENT OF OPERATIONS
(FOR VARIANCES GREATER THAN +/- 10% ONLY)
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Effective 1/1/95
SUMMARY OF CASH RECEIPTS AND DISBURSEMENTS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED February, 1999
---------------------
CASH BALANCE BEGINNING OF MONTH $120,389
----------------------
CASH RECEIPTS (1) $100,000
----------------------
CASH DISBURSEMENTS (1) $1,220
----------------------
EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS $98,780
----------------------
CASH BALANCE END OF MONTH $219,169
----------------------
----------------------
RECAPITULATION OF FUNDS HELD AT END OF MONTH
- --------------------------------------------
ACCOUNT 1 ACCOUNT 2 ACCOUNT 3
--------- --------- ---------
BANK Wells Fargo Mallesons Stephen Jaques
--------------------- -----------------------------------------------
ACCOUNT TYPE Checking Trust Account
--------------------- --------------------- ----------------------
ACCOUNT NO. 0114-458243
--------------------- --------------------- ----------------------
ACCOUNT PURPOSE General Litigation Turst
--------------------- --------------------- ----------------------
BALANCE, END OF MONTH $202,934 $16,235
--------------------- --------------------- ----------------------
TOTAL FUNDS ON HAND FOR ALL ACCOUNTS $219,169
--------------------
--------------------
(1) Excluding bank transfers between your accounts.
Effective 1/1/95