EXHIBIT 99.1
Case 1:08-cv-00151-LRR Document 12-2 Fled 02/26/10 Page 1 of 19
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF IOWA
CEDAR RAPIDS DIVISION
__________________________________
UNITED STATES OF AMERICA, )
)
Plaintiff, )
)
v. ) Case No. 08-CIV-151-LRR
)
BERTHEL SBIC, LLC )
)
Defendant, )
__________________________________)
FIRST RECEIVER'S REPORT FOR THE PERIOD
JANUARY 7, 2009 THROUGH DECEMBER 31, 2009
This First Receiver's Report ("Receiver's Report) is being filed by the
United States Small Business Administration ("SBA"), as the Receiver
("Receiver") of Berthel SBIC, LLC ("Berthel"). This report summarizes the
activities of the receivership for the period from January 7, 2009 through
December 31, 2009 (the "Reporting Period").
1. BACKGROUND
----------
Berthel is a limited liability company organized under the laws of the
State of Delaware. It was licensed by SBA as a small business investment company
("SBIC") on or about November 1, 1991 pursuant to the Small Business Investment
Act of 1958 (the "Act"), as Amended, 15 U.S.C. ss.~681 et seq. It is one hundred
percent (100%) owned by Berthel Growth and Income Trust I (the "Trust").
On January 7, 2009 this Court entered a Consent Order and Judgment (the
"Receivership Order), by which the Court appointed the SBA as Receiver for
Berthel The Receivership Order provides, inter alia, that this Court has taken
exclusive jurisdiction of Berthel and all of its assets, wherever located, and
Case 1:08-cv-00151-LRR Document 12-2 Filed 02/26/10 Page 2 of 19
appointed SBA as the court-appointed Receiver of Berthel for the purpose of
marshalling and liquidating the assets of Berthel and satisfying the claims of
its creditors in the order of priority as determined by this Court. Receivership
Order, Paragraph 1. Paragraph 2 of the Receivership Order dismisses the former
officers directors and managers of Berthel, and grants the Receiver all of the
powers, authorities, rights and privileges formerly possessed by those officers,
directors and managers. In addition, paragraphs 7 and 8 of the Receivership
Order stay all civil legal proceedings involving Berthel or any assets of
Berthel, enjoin all persons from initiating or continuing any civil proceedings
involving Berthel or any of its assets, and tolls all statutes of limitations as
to all causes of action accruing in favor of Berthel. Further, this Court
entered judgment in favor of SBA and against Berthel in the principal amount of
$2,773,841.50, plus accrued interest in the amount of $17,598.79 through
November 17, 2008, plus accrued interest in the amount of $566,15 per day up to
entry of judgment on January 7, 2009, together with post-judgment interest at
the rate allowed by law pursuant to 28 USC sec. 1961.
II. OPERATION OF THE RECEIVERSHIP
-----------------------------
A. General Operations
------------------
Pursuant to Paragraph 1 of the Receivership Order, the primary function of
the Receiver is to marshal and liquidate the assets of Berthel, and to
distribute the liquidation proceeds to creditors under the supervision of this
Case 1:08~cv-00151-LRR Document 12-2 Filed 02/26/10 Page 3 of 19
Court. Accordingly, the Receiver has marshaled and commenced liquidating the
assets of Berthel, as discussed in greater detail below, During this Reporting
Period, the Receiver has collected an aggregate amount of $439,679.94 from the
liquidation of assets and the collection of debt.
B. Notice of Receivership
----------------------
In accordance with paragraph 4 of the Receivership Order, the Receiver has
given written notice of its appointment by first class U.S. mail, postage
prepaid, to the relevant individuals and entities, including portfolio companies
and known creditors, to the extent the Receiver was able to obtain current
mailing addresses.
C. Personnel
---------
Pursuant to paragraph 5 of the Receivership Order, the Receiver has
retained personnel to effectuate the operation of the receivership.
Specifically, during this Reporting Period, the Receiver retained Barbara R.
Klein as Principal Agent for the Receiver. The Receiver also retained an
accounting firm, the Riggs Group, PC ("TRG") to perform accounting and cash
management functions, as needed, including the processing of accounts payable,
accounts receivable and bank account reconciliation. The Receiver has also
retained Recovery Support Services, Inc. ("RSS") to provide administrative
services to the Receivership including, but not limited to, paralegal and office
administrative services.
Case 1:08-cv-00151-LRR Document 12-2 Filed 02/26/10 Page 4 of 19
Finally, the Receiver entered into a retainer agreement with the law firm
of Ober, Kaler, Grimes & Shriver, P.C., Washington, D.C., to provide limited
securities and corporate law advice, as needed.
D. Receivership Office
-------------------
The Receiver administers the receivership estate from the SBA Receivership
Office located at 1100 C Street, NW, Washington, D.C. 20005. The Receiver, in
order to limit expenses, shares overhead expenses such as office space and
administrative services with other receiverships for which the SBA has been
appointed Receiver.
E. Books, Records and Files
------------------------
The Receiver collected the available pre-receivership books, records and
files of Berthel from Berthel's former management at the beginning of the
Receivership. The books, records and files needed for receivership operations
are maintained at the Receivership Office. Those books, records and files which
are not needed on an immediate basis are maintained at an off-site secure
document storage facility.
F. Receivership Accounts
---------------------
At the time the Receiver was appointed, Berthel maintained an account at F
& M Bank, Cedar Rapids, Iowa, The Receiver closed the pre-receivership account
with F & M Bank in January 2009, and transferred the finds in the sccount, in
the amount of $1,480.14, to a fully collateralized interest-bearing receivership
bank account with BB&T Bank, Wilson, NC, in the name of "SBA as Receiver for
Berthel SBIC, LLC," As of December 31, 2009, the account balance on the Berthel
receivership account was $354,390,67.
Case 1:08-cv-00151-LRR Document 12-2 Filed 02/26/10 Page 5 of 19
G. Receiver's Certificate of Indebtedness
--------------------------------------
As discussed above, the transfer balance of Berthel's receivership account
was $1,480.14. That amount was insufficient to pay current or future
administrative expenses of the Receivership, or to fund the Receiver's
liquidation activities as required by the Receivership Order, Pursuant to
paragraph 10 of the Receivership Order, which authorizes the Receiver to borrow,
on behalf of Berthel, up to $100,000 from SBA, the Receiver borrowed $100,000
from SBA and issued SBA a Receiver's Certificate of Indebtedness in February
2009. In accordance with the Receivership Order. the Receiver's Certificate
bears interest at the rate of ten percent (10%) per annum, has a maturity date
no later than eighteen (18) months after its date of issuance and has priority
over all other debts and obligations of Berthel.
The Receiver repaid $50,000 of the indebtedness in October 2009, with
$7,342.47 representing repayment of accrued interest, and the balance
representing partial repayment of principal. The principal balance on the
Receiver's Certificate indebtedness was $57,342.47 on December 31, 2009.
H. Corporate Compliance
--------------------
Berthel is a Delaware limited liability company. During this Reporting
Period, the Receiver notified the Secretary of State of Delaware that Berthel
had been placed into receivership, and changed Berthel's registered agent and
registered office in that state. Berthel is current in its filings with
Delaware.
Case 1:08-cv-00151-LRR Document 12-2 Filed 02/26/10 Page 6 of 19
I. Tax Returns and Accounting Matters
----------------------------------
During this Reporting Period, TRG has performed, at the request of the
Receiver, an ongoing review of available pre-receivership accounting records of
Berthel and a limited reconstruction of records, as needed. In addition, TRG has
created and maintained receivership accounting books and records, and has
prepared interim accounting schedules at the request of the Receiver.
As discussed above, Berthel is a single member limited liability company
which is wholly owned by its parent, Berthel Growth and Income Trust 1 (the
"Trust"). Prior to the Receivership, the Trust included Berthel on its tax
returns. The Trust has advised the Receiver that the Trust will continue to file
tax returns which include Berthel. Shortly after the end of this Reporting
Period, the Receiver provided the Trust with the information necessary to enable
the Trust to prepare and file 2009 tax returns on behalf of the Trust and
Berthel.
J. SEC Reporting
-------------
Both Berthel and its parent, the Trust, are registered with the U. S.
Securities and Exchange Commission ("SEC"). The Trust is required to file SEC
annual and quarterly report forms 10K and 10Q with the SEC on behalf of itself
and Berthel. By letter dated March 30, 2009, the Trust requested that the SEC
exempt it from filing annual and quarterly report forms 10K and 1OQ and,
instead, to permit it to file only current reports on forms BK to disclose any
information relating to the liquidation of Berthel. By "No Action" letter dated
May 5, 2009, the SEC agreed that it would not recommend an enforcement action if
the Trust, on its own behalf and on behalf of the SBIC, stopped filing 10-Ks and
10-Os for the period after December 31, 2008. However, the No Action letter does
Case 1:08-cv-00151-LRR Document 12-2 Filed 02/26/10 Page 7 of 19
require the Trust to file a form 8-K upon the occurrence of all "materia1"
developments related to the Trust and Berthel, including "all material
developments relating to the SBIC's receivership (including copies of any Court
Reports)." During this Reporting Period, the Receiver has notified the Trust
of the liquidation of Berthels investments in two portfolio concerns, The
Schebler Company and Physicians Total Care, Inc., and proposes to send the Trust
a copy of this and subsequent Receiver's Reports.
Ill. ANALYSIS OF ASSETS
------------------
Berthels assets at the date of entry of the Receivership Order consisted of
cash and debt and equity investments. Pursuant to Paragraph 3 of the
Receivership Order, the former management of Berthel identified seven (7)
portfolio concerns of Berthel as of the date the Receivership Order was entered,
During this Reporting Period, the Receiver has liquidated Berthel's investments
in two (2) portfolio concerns. The liquidated investments, as well as the
remaining assets of Berthel, are discussed below.
A. Accounts Resolved During Reporting Period
-----------------------------------------
1. Physicians Total Care, Inc.
---------------------------
Asset at 1/07/09: Promissory Note dated August 15, 2008 in the
original principal amount of $500,000
100,000 shares of common stock
Asset at 12/31/09: 0
Collections during
Reporting Period: $85,000
Physician's Total Care, Inc. ("PTC"), an Oklahoma corporation, is a
Case 1:08-cv-00151-LRR Document 12-2 Filed 02/26/10 Page 8 of 19
pharmaceutical distributor that sells pre-packaged prescription drugs directly
to physicians who, in turn, dispense the medications directly to the patient.
According to Berthel's pre-receivership records, Berthel made both debt and
equity investments in PTC prior to the receivership. At the inception of the
receivership, Berthel owned 100,000 shares of common stock of PTC. In addition,
PTC was indebted to Berthel in connection with a promissory note dated August
15, 2008, in the original principal amount of $500,000(1). By the terms of the
note, PTC paid Berthel $25,000 in reduction of principal on August 15, 2008. PTC
failed to make further payments in reduction of the indebtedness in accordance
with the terms of the note, and was in default on the note at the time the
receivership was ordered.
During this Reporting Period, the Receiver negotiated a sale of Berthel's
debt and equity investments in PTC for an aggregate amount of $85,000 (2), The
Receiver determined that such sale was in the best interests of the receivership
estate after a review of financial and other relevant information pertaining to
PTC. The Receiver sold the note and equity to PTC for an aggregate purchase
price of $85000 pursuant to a Securities Purchase Agreement dated December 11,
2009. This asset is now fully liquidated and there will he no further
collections in connection with Berthel's investment in PTC.
2. The Schebler Company
--------------------
Asset at 1/7/09 Promissory Note dated January 12, 2000 in the
- ----------------------
(1) The August 15, 2008 promissory note was a renegotiation of a July 1,2006
promissory note which was in default at the time the 2008 promissory note was
issued.
(2) The Receiver also obtained an offer from an outside party for the stock.
However, the offer made by PTC was higher than that of the outside party, and
the Receiver determined that it was in the best interests of the receivership
estate to sell the stock to PTC.
Case 1:08-cv-00151-LRR Document 12-2 Filed 02/26/10 Page 9 of 19
face amount of $166,666
166,666.33 shares of common stock
166,666.33 shares of 10% convertible
cumulative preferred stock
Warrants to purchase 1.66% shares of issued
and outstanding stock of company
Asset at l2/31/09 0
Collections during
Reporting Period: $354,679.94
The Schebler Co. ("Schebler"), an Illinois corporation formerly known as
GMKS Acquisition Corp., is a privately held sheet metal fabrication company
located in Iowa. According to Berthel's pre-receivership books and records
Berthel made equity and debt investments in Schebler prior to the inception of
the receivership. Specifically, Berthel owned 166,666.33 shares of common stock,
166,666.33 shares of 10% convertible cumulative preferred stock, and warrants to
purchase 1.66% shares of common stock at $.01 per share. Moreover, Berthel was
the payee on a 13% subordinated promissory note dated January 12, 2000, in the
original principal amount of $166,666.33. By the terms of the note, payment of
principal was due in full on March 31, 2005, but the payment date was later
extended by agreement until June 30, 2006. At the inception of the receivership,
Schebler was current in its quarterly interest payments but had not made any
payments in reduction of principal.
During the first 6 months of the receivership, the Receiver collected
accrued interest on the note in the aggregate amount of $10,833.34.
Subsequently, the Receiver and Schebler negotiated an agreement for the company
to repay the note in full and purchase Berthel's equity position in Schebler for
Case 1:08-cv-00151-LRR Document 12-2 Filed 02/26/10 Page 10 of 19
an aggregate amount of $343,846.34. After reviewing financial and other relevant
information related to Schebler, the Receiver determined that repayment of the
note in full and sale of the equity for an aggregate amount of $343,846.60 was
in the best interests of the receivership estate. Pursuant to a Securities
Purchase Agreement dated July 28, 2009, the Note was repaid in full and the
equity investment sold for an aggregate amount of $343,846.60, with
$170,000 of that amount representing monies collected upon the sale of the
equity, $166,666.33 representing repayment of the outstanding principal, and the
balance representing payment of accrued interest. This asset is now fully
liquidated and there will be no further collections in connection with Berthel's
investment in Schebler.
B. Open Portfolio Investment Accounts
----------------------------------
1. CeloNova Biosciences, Inc.
--------------------------
Asset at 1/7/09 1,899,783 shares of common stock
Asset at 12/31/09 No change
Collections during
Reporting Period: 0
CeloNova Biosciences ("CeloNova"), formerly known as "Imed Devices, Inc.,
("Imed") is a privately held biosciences company located in Georgia. Its primary
focus is the manufacture of medical devices coated with a polymer called
Polyzene(R)-F. Berthel owns 1,899,783 shares of common stock of CeloNova, which
it acquired in 2002 in connection with a release of certain claims Berthel
asserted against FutureMatrix Interventional, Inc. (discussed below) and Imed.
Case 1:08-cv-00151-LRR Document 12-2 Filed 02/26/10 Page 11 of 19
During this Reporting Period, the Receiver requested financial and other
information from the company and was advised by the company's CFO that she would
provide the Receiver with the requested information. However, the Receiver did
not receive such information before the end of this Reporting Period, despite
the Receiver's requests, and the company has since advised the Receiver that
there has been a change in top management. Based upon recent conversations with
the company, the Receiver expects to receive the requested information by
mid-March of 2010,
2. Edmin.com
---------
Asset at 1/7/09 261,203 shares of series A convertible
preferred stock.
Asset at 12/31/09 No Change
Collections during
Reporting Period: $0
EDmin,com, located in California, provides internet-based software
products, technology planning, and systems integration to educational
institutions. Its shares are not publicly traded. According to Berthel's
records, Berthel's original investment in Edmin.com was for 200,000 shares of
Series A cumulative convertible preferred stock. The additional 61,203 shares
now owned by Berthel were acquired in lieu of cash dividends payable to holders
ot the Series A preferred stock.
During this Reporting Period, Edmin.com presented the Receiver with an
offer to purchase its stock from Berthel. The Receiver was reviewing the offer
at the end of this Reporting Period to determine if acceptance of such offer is
in the best interests of the receivership.
Case 1:08-cv-00151-LRR Document 12-2 Filed 02/26/10 Page 12 of 19
3. FutureMatrix Interventional, Inc.
---------------------------------
Asset at 1/7/09 905,203 shares of common stock
Asset at 12/31/09 No change
Collections during
Reporting Period: $0
FutureMatrix Interventional, Inc. (FMI), f/k/a "FutureMed Interventional,
Inc.," is a privately held medical device manufacturer and development company.
Its major products are catheters and stents used primarily by radiologists and
urologists. According to Berthel's records, Berthel owns 905,203 shares of
common stock of FMI. Berthel acquired the shares of common stock upon the
exercise of a Warrant Exercise Agreement dated June 2006, and further received a
payment of $500,000 from FMI in consideration of the termination of certain
rights previously held by Berthel.
Shortly after the end of this Reporting Period, FMI made the Receiver an
offer to purchase the FMI common stock from Berthel. The Receiver is currently
in the process of reviewing this offer to determine if it would be in the best
interests of the Receivership estate to accept the offer.
4. Inter-med
---------
Asset at 1/7/09 2,557.1670 shares of common stock
Asset at 12/31/09 No change
Collections during
Reporting Period; $0
Inter-Med (d/b/a Vista Dental) ("Inter-Med") sells dental, periodontal and
endodental supplies, primarily small equipment and disposables. It is a
privately held company located in Wisconsin.
Case 1:08-cv-00151-LRR Document 12-2 Filed 02/26/10 Page 13 of 19
Berthel owns 2557.1670 shares of common stock of Inter-Med, representing a
18.8872% interest in the company on a fully diluted basis. Berthel also made two
debt investments in Inter-Med, both of which were repaid prior to the
receivership.
The Inter-Med Investment Agreement dated May 3, 1999, allows Berthel to
exercise put rights after May 3, 2006, and sets out formulas for determining the
exercise price. Berthel did not exercise its put rights prior to the
receivership. Inter-Med management has advised the Receiver that it does not
have sufficient funds at the present time to repurchase its stock from Berthel,
but further advised the Receiver that it was attempting to raise funds with
which to purchase Berthel's position. During this Reporting Period, the Receiver
reviewed the company's financial and other information, and is in the process of
attempting to negotiate a buy out of Berthel's interest.
5. Feed Management Systems, Inc.
-----------------------------
Asset at 1/7/09 435,590 shares of common stock
Asset at 12/31/09 No change
Collections during
Reporting Period: 0
Feed Management Systems, Inc. (FMS), formerly known as "Easy Systems,
Inc.," is a privately held company located in Minnesota. FMS designs and
manufactures equipment and software for agricultural feed control systems. In
addition, the company is developing an Internet based feed purchasing system
that is integrated with their existing lines of feed control systems. Berthel
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owns 436,590 shares of common stock of FMS, which it acquired on January 30,
2002 when prior debt and preferred securities were converted to common stock
after FMS emerged from bankruptcy.
FMS has advised the Receiver that it sold 25% of its equity to another
company (the "acquiring company") in April, 2008. The acquiring company has the
right, but not the obligation, to acquire the remaining 75% of the equity of FMS
under a merger agreement executed in connection with the sale of the 25% equity
stake in FMS. If the acquiring company chooses to exercise its right to purchase
the remaining 75% of FMS, FMS anticipates that all sales proceeds after payment
of expenses will be used to pay the liquidation preferences of the Series A
stock and there will be no proceeds available to pay common shareholders. As of
the end of the reporting period, FMS informed the Receiver that the acquiring
company had not yet advised FMS of its intentions with regards to the
acquisition of the remaining equity in FMS. The Receiver will continue to
monitor this investment.
V. CLAIMS AGAINST BERTHEL AND THE RECEIVERSHIP
----------------------------------------------
A. Receivers Certificate
---------------------
As discussed above at pages 4 and 5, Berthel had minimal funds in its cash
account at the beginning of the Receivership. Consequently, it was necessary for
the Receiver to borrow $100,000 from SBA to fund receivership operations, and
SBA issued a Receiver's Certificate of Indebtedness in February 2009. Pursuant
to paragraph 10 of the Receivership Order, the Receiver's Certificate is deemed
to be an administrative expense of the receivership.
Case 1:08-cv-00151-LRR Document 12-2 Filed 02/26/10 Page 15 of 19
In October, 2009, the Receiver made a payment of $50,000 in partial
repayment of the Receiver's Certificate, with $7,342.47 representing repayment
of accrued interest, and the balance representing partial repayment of principal
The principal balance on the Receiver's Certificate indebtedness was $57,342.47
on December 31, 2009.
B. SBA Judgment
------------
This Court entered a judgment in favor of SBA, against Berthel, in the
principal amount of $2,773,841.50, plus accrued interest in the amount of
$17,598.79 through November 17,2008, plus accrued interest in the amount of
$566.15 per day up to entry of judgment on January 7, 2009, together with
post-judgment interest at the rate allowed by law. As of the end of this
Reporting Period, Berthel has not made any payments in reduction of the
judgment.
C. Claims Bar Date
---------------
In order to determine the existence, validity and priority of claims
against Berthel and the receivership estate, the Receiver filed a motion with
this Court on June 26, 2009 to establish a claims bar date by which all
claimants must submit a claim in writing by a certain date ("Claims Bar Date"),
Tile imposition of a Claims Bar Date was necessary so that the Receiver could
recommend a plan to distribute Berthels assets to its creditors who have
rendered timely claims, without fear that other claimants might later appear to
assert claims against Berthel or the receivership estate.
On July 10, 2009 this Court entered an Order Approving the Form and Manner
of Notice to Claimants and Establishing a Claims Bar Date ("Claims Bar Date
Case 1:08-cv-00151-LRR Document 12-2 Filed 02/26/10 Page 16 of 19
Orders"). Subsequently, in accordance with the Claims Bar Date Order, the
Receiver mailed notice of the claims bar date to known prospective claimants,
and caused notice of the claims bar date to be published in the Cedar Rapids
Gazette, a newspaper of general circulation serving the Cedar Rapids Iowa
metropolitan area. The Claims Bar Date was August 28, 2009.
No claims were filed against Berthel or the receivership estate by August
28, 2009 in response to the mailed and published notices. The Receiver filed a
Receiver's Report Of Claims Filed Against Berthel SBIC, LLC, And Recommendations
Regarding The Disposition And Priority Of Expenses And Claims (the "Notice and
Determination of Claims") with this Court on November 25, 2009. In the Notice
and Determination of Claims, the Receiver recommended paying administrative
expenses and claims in the following order of priority:
a) First, any and all administrative expenses of the receivership estate,
including repayment of the Receiver's Certificate;
b) Second, to SBA, a consent judgment in the principal amount of
$2,773,841.50, plus accrued interest in the amount of $17,598.79 through
November 17, 2008, plus accrued interest in the amount of $566.15 per day up to
entry of judgment on January.7, 2009, together with post-judgment interest at
the rate allowed by law; and
c) Third, to the sole equity member of Berthel SBIC, Berthel Growth and
Income Trust.
This Court approved the Notice and Determination of Claims by Order entered
December 21, 2009 and authorized the Receiver to pay the approved claims in the
order of priority approved by the court to the extent of available
Case 1:08-cv-00151-LRR Document 12-2 Filed 02/26/10 Page 17 of 19
receivership funds. Accordingly, the Receiver has made a payment of $50,000 in
partial satisfaction of the outstanding Receivers Certificate and has paid
continuing administrative expenses of the receivership as such expenses have
arisen. Administrative expenses will continue until the close of the
Receivership.
At the present time, Berthel does not have sufficient assets to repay the
SBA judgment and, consequently, there are no assets available to distribute to
the equity member of Berthel.
Pursuant to paragraph 4 of the Claims Disposition Order, any person who
failed to file a claim pursuant to the terms of the Claims Bar Date Order is
forever barred from asserting, pursuing or prosecuting any pre-receivership
claim against SBIC Partners, the Receiver, or assets or funds in the possession
of the Receiver.
VI. LITIGATION
----------
Berthel is a named party to this Receivership proceeding. The Receiver is
not aware of any additional litigation to which Berthel is a party at the
present time.
VII. RECEIPTS AND DISBURSEMENTS
--------------------------
The Berthel receivership shares office space, overhead expenses and
administrative services with other SBA receiverships. This arrangement is
beneficial to Berthel as operating costs for each individual receivership are
reduced by such sharing of costs, as well as by the Receiver's use of certain
services, such as telephone lines, provided by the Federal Government. The
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rent, administrative, and overhead expenses pertaining to the operation of the
office are originally disbursed by RSS, the company which holds the lease for
office space. The expenses are then allocated each month, after accounts are
reconciled, to all the receiverships, including Berthel.
The Cash Receipts and Disbursements for the Receivership for the period
from January 7, 2009 through December 31,2009 are set forth on the schedule
attached to this Receiver's Report as Exhibit A.
This Receiver's Report was prepared by Barbara R. Klein, with accounting
information provided by The Riggs Group, P.C
Respectfully submitted,
U.S. SMALL BUSINESS ADMINISTRATION
as Receiver for Berthel SBIC, LLC
Date: 02/25/2010 By: /s/ Barbara R. Klien
--------------------------------
Barbara P. Klein
Principal Agent for the Receiver
Case 1:08-cv-00151-LRR Document 12-2 Filed 02/26/10 Page 19 of 19
SBA, Receiver for BERTHEL SBIC, LLC
The schedule below sets forth receipts and disbursements for the
period 01-07-09 to 12-31-09.
01-07-09 to
12-31-09
-----------------
1. Total Cash on Hand at the Beginning of Period $ 1,480.14
2. Receivership Operations
A. Receipts from Receivership Operations:
Payment on Loans:
Schebler Company 134,679.94
Sale of Assets:
Schebler Company 170,000.00
Physicians Total Care 85,000.00
0ther:
Interest Earned from Cash Accounts 15.83
-----------------
Total Receipts from Receivership Operations $ 439,695.77
-----------------
B. Disbursements from Receivership Operations:
Accounting/Bookkeeping Fees 47,407.01
Agent Fees 38,000.00
Legal Services 14,386.00
Rent/Overhead Allocation 13,880.76
Administrative Services 9,942.17
Deposit on Receivership Office Space 4,000.00
Travel Expenses 2,226.19
Valuation Fees 2,150.00
IT Systems Support Expenses 2,129.83
Delivery Services 1,075.91
Record Storage Fees 628.26
Trustee Fees/Bank Charges 352.34
Corporate Compliance 312.24
Filing Fees 250.00
Advertising (Including Bar Date Notice Publication) 44.53
-----------------
Total Disbursements from Receivership Operations $ 136,785.24
-----------------
-----------------
Net Cash (Gain/(Loss) from Receivership Operations $ 302,910.53
-----------------
3. Borrowing for Receivership Operations
Receiver Certificates Obtained from SBA 100,000.00
Receiver Certificates (Paid with Interest) to SBA (50,000.00)
-----------------
-----------------
4. Total Cash on Hand for Period Ended December 31 2009 $ 354,390.67
=================