Digital Systems, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1

Attached files

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8-K - DIGITAL SYSTEMS, INC. 8-K - Digital Systems, Inc.	digitalsystems8k.htm

Exhibit 99.1

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF KANSAS

KANSAS CITY DIVISION

IN RE:	)
	) Case No. 11-20140-11-rdb
DIGITAL SYSTEMS, INC.	) Chapter 11
Debtor.	)
	)

DEBTOR'S STANDARD MONTHLY OPERATING REPORT (BUSINESS)

FOR THE PERIOD

FROM September 1, 2011 TO September 30, 2011

Comes now the above-named debtor and files its Monthly Operating Reports in accordance with the Guidelines established by the United States Trustee and FRBP 2015.

	/s/ Joanne B. Stutz
	Attorney for Debtor’s Signature


Debtor's Address	Attorney's Address
and Phone Number:	and Phone Number:

15621 W. 87th Street, Box 355

Lenexa, KS 66219

7225 Renner Road, Suite 200

Shawnee, KS 66217

(913) 962-8700; (913) 962-8701 (FAX)

Note: The original Monthly Operating Report is to be filed with the court and a copy simultaneously provided to the United States Trustee Office. Monthly Operating Reports must be filed by the 21st day of the following month.

For assistance in preparing the Monthly Operating Report, refer to the following resources on the United States Trustee Program Website, http://www.justice.gov/ust/r20/index.htm.

1)	Instructions for Preparations of Debtor’s Chapter 11 Monthly Operating Report

2)	Initial Filing Requirements

3)	Frequently Asked Questions (FAQs)http://www.usdoj.gov/ust/

MOR-1

SCHEDULE OF RECEIPTS AND DISBURSEMENTS

FOR THE PERIOD BEGINNING September 1, 2011 and ending September 30, 2011

Name of Debtor: Digital Systems, Inc.	Case Number: 11-20140-11-rdb
Date of Petition: January 21, 2011

		Current			Cumulative
		Month			to Petition Date

1. FUNDS AT BEGINNING OF PERIOD		$	190,530.32	(a)	$	24,201.83	(b)
2. RECEIPTS:
	A. Cash Sales					-
	Minus: Cash Refunds					-
	Net Cash Sales					-
	B. Accounts Receivable					202,714.26
	C. Other Receipts (See MOR-3)					762,859.56
	(If you receive rental income,					-
	you must attach a rent roll.)
3. TOTAL RECEIPTS (Lines 2A+2B+2C)						965,573.82
4.	TOTAL FUNDS AVAILABLE FOR OPERATIONS (Line 1 + Line 3)	$	190,580.22		$	989,775.65
5. DISBURSEMENTS
	A. Advertising					-
	B. Bank Charges		60.00			1,630.00
	C. Contract Labor		2,000.00			53,034.85
	D. Fixed Asset Payments (not incl. in “N”)					-
	E. Insurance					41,943.00
	F. Inventory Payments (See Attach. 2)					-
	G. Leases					-
	H. Manufacturing Supplies					-
	I. Office Supplies		30.25			1,401.09
	J. Payroll - Net (See Attachment 4B)					167,780.49
	K. Professional Fees (Accounting & Legal)		22,971.21			182,442.30
	L. Rent		750.00			50,375.66
	M. Repairs & Maintenance					-
	N. Secured Creditor Payments (See Attach. 2)					186,977.59
	O. Taxes Paid - Payroll (See Attachment 4C)					83,905.08
	P. Taxes Paid - Sales & Use (See Attachment 4C)					-
	Q. Taxes Paid - Other (See Attachment 4C)		916.00			6,630.52
	R. Telephone		183.17			8,854.95
	S. Travel & Entertainment					4,185.62
	Y. U.S. Trustee Quarterly Fees					4,875.00
	U. Utilities		214.70			6,437.66
	V. Vehicle Expenses					-
	W. Other Operating Expenses (See MOR-3)					25,896.85
6. TOTAL DISBURSEMENTS (Sum of 5A thru W)			27,125.33			826,370.66
7. ENDING BALANCE (Line 4 Minus Line 6)		$	163,404.99	(c)	$	163,404.99	(c)

MOR-2

I declare under penalty of perjury that this statement and the accompanying documents and reports are true and correct to the best of my knowledge and belief.

This 12th day of October, 2011.

/s/ David C. Owen

By: David C. Owen, Chairman/CEO

(a)This number is carried forward from last month’s report. For the first report only, this number will be the balance as of the petition date.

(b)This figure will not change from month to month. It is always the amount of funds on hand as of the date of the petition.

(c)These two amounts will always be the same if form is completed correctly.

MOR-3

MONTHLY SCHEDULE OF RECEIPTS AND DISBURSEMENTS (cont’d)

Detail of Other Receipts and Other Disbursements

OTHER RECEIPTS:

Describe Each Item of Other Receipt and List Amount of Receipt. Write totals on Page MOR-2, Line 2C.

			Cumulative
Description		Current Month	Petition to Date

TOTAL OTHER RECEIPTS	Refunds

“Other Receipts” includes Loans from Insiders and other sources (i.e. Officer/Owner, related parties directors, related corporations, etc.). Please describe below:

Loan Amount	Source of Funds	Purpose	Repayment Schedule

OTHER DISBURSEMENTS:

Describe Each Item of Other Disbursement and List Amount of Disbursement. Write totals on Page MOR-2, Line 5W.

Description	Current Month	Cumulative Petition to Date





TOTAL OTHER DISBURSEMENTS

NOTE: Attach a current Balance Sheet and Income (Profit & Loss) Statement.

MOR-4

ATTACHMENT 1

MONTHLY ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

Name of Debtor: Digital Systems, Inc.	Case Number: 11-20140-11-rdb

Reporting Period beginning September 1, 2011	Period ending September 30, 2011

ACCOUNTS RECEIVABLE AT PETITION DATE:

ACCOUNTS RECEIVABLE RECONCILIATION

(Include all accounts receivable, pre-petition and post-petition, including charge card sales which have not been received):

Beginning of Month Balance	$ 176,140 (a)
PLUS: Current Month New Billings
MINUS: Collection During the Month	$ (b)
PLUS/MINUS: Adjustments or Writeoffs	$ *
End of Month Balance	$ 176,140 (c)

*For any adjustments or Write-offs provide explanation and supporting documentation, if applicable:

Customer receipts paid to FCG offset against interest and penalty fees

Adjustment made to refund overpayment on account.

POST PETITION ACCOUNTS RECEIVABLE AGING

(Show the total for each aging category for all accounts receivable)

0-30 Days

31-60 Days

61-90 Days

Over 90Days

Total

TOTAL		0.00		0.00		(66.96)		(199,292.32)		375,499.08		176,139.80

For any receivables in the “Over 90 Days” category, please provide the following:

Customer	Receivable Date	Status (Collection efforts taken, estimate of collectibility, write-off, disputed account, etc.)

(a)This number is carried forward from last month’s report. For the first report only, this number will be the balance as of the petition date.

(b)This must equal the number reported in the “Current Month” column of Schedule of Receipts and

Disbursements (Page MOR-2, Line 2B).

(c)These two amounts must equal.

MOR-5

ATTACHMENT 2

MONTHLY ACCOUNTS PAYABLE AND SECURED PAYMENTS REPORT

Name of Debtor: Digital Systems, Inc.	Case Number: 11-20140-11-rdb

Reporting Period beginning September 1, 2011	Period ending September 30, 2011

In the space below list all invoices or bills incurred and not paid since the filing of the petition. Do not include amounts owed prior to filing the petition. In the alternative, a computer generated list of payables may be attached provided all information requested below is included.

POST-PETITION ACCOUNTS PAYABLE

Date Incurred	Days Outstanding	Vendor	Description	Amount
See Attached








TOTAL AMOUNT				(b)

X Check here if pre-petition debts have been paid. Attach an explanation and copies of supporting documentation.

ACCOUNTS PAYABLE RECONCILIATION (Post Petition Unsecured Debt Only)

Opening Balance	$ 4,941.02 (a)
PLUS: New Indebtedness Incurred This Month	$
MINUS: Amount Paid on Post Petition,
Accounts Payable This Month	$
PLUS/MINUS: Adjustments	$ *
Ending Month Balance	$ 4,941.02 (c)

*For any adjustments provide explanation and supporting documentation, if applicable.

SECURED PAYMENTS REPORT

List the status of Payments to Secured Creditors and Lessors (Post Petition Only). If you have entered into a modification agreement with a secured creditor/lessor, consult with your attorney and the United States Trustee Program prior to completing this section).

			Number	Total
	Date		of Post	Amount of
Secured	Payment	Amount	Petition	Post Petition
Creditor/	Due This	Paid This	Payments	Payments
Lessor	Month	Month	Delinquent	Delinquent




		(d)

(a)This number is carried forward from last month’s report. For the first report only, this number will be zero.

(b, c)The total of line (b) must equal line (c).

(d)This number is reported in the “Current Month” column of Schedule of Receipts and Disbursements (Page MOR-2, Line 5N).

MOR-6

ATTACHMENT 3

INVENTORY AND FIXED ASSETS REPORT

Name of Debtor: Digital Systems, Inc.	Case Number: 11-20140-11-rdb

Reporting Period beginning September 1, 2011	Period ending September 30, 2011

INVENTORY REPORT

INVENTORY BALANCE AT PETITION DATE:	$
INVENTORY RECONCILIATION:
Inventory Balance at Beginning of Month	$ 0.00 (a)
PLUS: Inventory Purchased During Month	$
MINUS: Inventory Used or Sold	$
PLUS/MINUS: Adjustments or Write-downs	$ *
Inventory on Hand at End of Month	$ 0.00

METHOD OF COSTING INVENTORY: FIFO

*For any adjustments or write-downs provide explanation and supporting documentation, if applicable.

Sale of Assets March 2011.

INVENTORY AGING

Less than 6	6 months to	Greater than	Considered	Total Inventory
months old	2 years old	2 years old	Obsolete

%	100.00 %	%	% =	100%*

* Aging Percentages must equal 100%.

☐ Check here if inventory contains perishable items.

Description of Obsolete Inventory:

FIXED ASSET REPORT

FIXED ASSETS FAIR MARKET VALUE AT PETITION DATE: $ 1.219.241.95(b)

(Includes Property, Plant and Equipment)

BRIEF DESCRIPTION (First Report Only):

FIXED ASSETS RECONCILIATION:
Fixed Asset Book Value at Beginning of Month	$ -0- (a)(b)
MINUS: Depreciation Expense	$
PLUS: New Purchases	$
PLUS/MINUS: Adjustments or Write-downs	$
Ending Monthly Balance	$ -0-

*For any adjustments or write-downs, provide explanation and supporting documentation, if applicable.

Asset Sale March 2011.

BRIEF DESCRIPTION OF FIXED ASSETS PURCHASED OR DISPOSED OF DURING THE REPORTING PERIOD:

(a)This number is carried forward from last month’s report. For the first report only, this number will be the

balance as of the petition date.

(b)Fair Market Value is the amount at which fixed assets could be sold under current economic conditions.

Book Value is the cost of the fixed assets minus accumulated depreciation and other adjustments.

MOR-7

ATTACHMENT 4A

MONTHLY SUMMARY OF BANK ACTIVITY - OPERATING ACCOUNT

Name of Debtor: Digital Systems, Inc.	Case Number: 11-20140-11-rdb

Reporting Period beginning September 1, 2011	Period ending September 30, 2011

Attach a copy of current month bank statement and bank reconciliation to this Summary of Bank Activity. A standard bank reconciliation form can be found at http://www.justice.gov/ust/r20/index.htm. If bank accounts other than the three required by the United States Trustee Program are necessary, permission must be obtained from the United States Trustee prior to opening the accounts. Additionally, use of less than the three required bank accounts must be approved by the United States Trustee.

NAME OF BANK: FNB Olathe BRANCH:

ACCOUNT NAME: Operating Account ACCOUNT NUMBER: 0139602

PURPOSE OF ACCOUNT: OPERATING

Ending Balance per Bank Statement	$ 164,649.75
Plus Total Amount of Outstanding Deposits	$
Minus Total Amount of Outstanding Checks and other debits	$ 219.09 *
Minus Service Charges	$
Ending Balance per Check Register	$ 164,430.66**(a)

*Debit cards are used by

**If Closing Balance is negative, provide explanation:

4C: TAXES PAID-OTHER
Amount	Payee	Purpose
$ 25.00	California Franchise Tax Board	Taxes
$ 11.00	State of New Jersey	Taxes
$ 199.00	North Dakota Dept. of Revenue	Taxes
$ 50.00	Arizona Dept. of Revenue	Taxes
$ 531.00	Kansas Franchise Tax	Taxes
$ 100.00	Utah State Tax Commission	Taxes

The following disbursements were paid in Cash (do not includes items reported as Petty Cash on Attachment 4D: ( ☐ Check here if cash disbursements were authorized by United States Trustee)

Date

Amount

Payee

Purpose

Reason for Cash Disbursement

TRANSFERS BETWEEN DEBTOR IN POSSESSION ACCOUNTS

“Total Amount of Outstanding Checks and other debits”, listed above, includes:

$________________Transferred to Payroll Account

$________________Transferred to Tax Account

(a) The total of this line on Attachment 4A, 4B and 4C plus the total of 4D must equal the amount reported as

“Ending Balance” on Schedule of Receipts and Disbursements (Page MOR-2, Line 7).

MOR-8

ATTACHMENT 5A

CHECK REGISTER - OPERATING ACCOUNT

Name of Debtor: Case Number:

Reporting Period beginning Period ending

NAME OF BANK: BRANCH:

ACCOUNT NAME:

ACCOUNT NUMBER:

PURPOSE OF ACCOUNT: OPERATING

Account for all disbursements, including voids, lost checks, stop payments, etc. In the alternative, a computer generated check register can be attached to this report, provided all the information requested below is included.

DATE	CHECK NUMBER	PAYEE	PURPOSE	AMOUNT
		SEE ATTACHED

















TOTAL				$

MOR-9

ATTACHMENT 4B

MONTHLY SUMMARY OF BANK ACTIVITY - PAYROLL ACCOUNT

Name of Debtor: Digital Systems, Inc.	Case Number: 11-20140-11-rdb

Reporting Period beginning September 1, 2011	Period ending September 30, 2011

Attach a copy of current month bank statement and bank reconciliation to this Summary of Bank Activity. A standard bank reconciliation form can be found at http://www.justice.gov/ust/r20/index.htm.

NAME OF BANK: FNB Olathe BRANCH:

ACCOUNT NAME: Payroll Account ACCOUNT NUMBER: 0149527

PURPOSE OF ACCOUNT: PAYROLL

Ending Balance per Bank Statement	$ 0.00*
Plus Total Amount of Outstanding Deposits	$
Minus Total Amount of Outstanding Checks and other debits	$ 0.00*
Minus Service Charges	$
Ending Balance per Check Register	$ 0.00**(a)

*Debit cards must not be issued on this account.

**If Closing Balance is negative, provide explanation:

The following disbursements were paid by Cash: ( ☐ Check here if cash disbursements were authorized by United States Trustee)

Date	Amount	Payee	Purpose	Reason for Cash Disbursement

The following non-payroll disbursements were made from this account:

Date	Amount	Payee	Purpose	Reason for disbursement from this account

(a)The total of this line on Attachment 4A, 4B and 4C plus the total of 4D must equal the amount reported as

“Ending Balance” on Schedule of Receipts and Disbursements (Page MOR-2, Line 7).

MOR-10

ATTACHMENT 5B

CHECK REGISTER - PAYROLL ACCOUNT

Name of Debtor:	Case Number:

Reporting Period beginning	Period ending

NAME OF BANK:	BRANCH:

ACCOUNT NAME:

ACCOUNT NUMBER:

PURPOSE OF ACCOUNT: PAYROLL

Account for all disbursements, including voids, lost payments, stop payment, etc. In the alternative, a computer generated check register can be attached to this report, provided all the information requested below is included.

DATE	CHECK NUMBER	PAYEE	PURPOSE	AMOUNT
		SEE ATTACHED

















TOTAL				$

MOR-11

ATTACHMENT 4C

MONTHLY SUMMARY OF BANK ACTIVITY - TAX ACCOUNT

Name of Debtor: Digital Systems, Inc.	Case Number: 11-20140-11-rdb

Reporting Period beginning September 1, 2011	Period ending September 30, 2011

Attach a copy of current month bank statement and bank reconciliation to this Summary of Bank Activity. A standard bank reconciliation form can be found on the United States Trustee website, http://www.justice.gov/ust/r20/index.htm.

NAME OF BANK: BRANCH: ACCOUNT CLOSED

ACCOUNT NAME: ACCOUNT NUMBER:

PURPOSE OF ACCOUNT: TAX

Ending Balance per Bank Statement	$
Plus Total Amount of Outstanding Deposits	$
Minus Total Amount of Outstanding Checks and other debits	$ *
Minus Service Charges	$
Ending Balance per Check Register	$ **(a)

*Debit cards must not be issued on this account.

**If Closing Balance is negative, provide explanation:

The following disbursements were paid by Cash: ( ☐ Check here if cash disbursements were authorized by

United States Trustee)

Date	Amount	Payee	Purpose	Reason for Cash Disbursement

The following non-tax disbursements were made from this account:

Date	Amount	Payee	Purpose	Reason for disbursement from this account

(a)The total of this line on Attachment 4A, 4B and 4C plus the total of 4D must equal the amount reported as

“Ending Balance” on Schedule of Receipts and Disbursements (Page MOR-2, Line 7).

MOR-12

ATTACHMENT 5C

CHECK REGISTER - TAX ACCOUNT

Name of Debtor:	Case Number:

Reporting Period beginning	Period ending

NAME OF BANK: BRANCH:

ACCOUNT NAME: ACCOUNT #

PURPOSE OF ACCOUNT: TAX

Account for all disbursements, including voids, lost checks, stop payments, etc. In the alternative, a computer-generated check register can be attached to this report, provided all the information requested below is included.

http://www.usdoj.gov/ust.

DATE	CHECK NUMBER	PAYEE	PURPOSE	AMOUNT


















TOTAL				(d)

SUMMARY OF TAXES PAID

Payroll Taxes Paid				(a)
Sales & Use Taxes Paid				(b)
Other Taxes Paid				(c)

TOTAL

(d)

(a) This number is reported in the “Current Month” column of Schedule of Receipts and Disbursements

(Page MOR-2, Line 5O).

(b) This number is reported in the “Current Month” column of Schedule or Receipts and Disbursements

(Page MOR-2, Line 5P).

(Page MOR-2, Line 5Q).

(d) These two lines must be equal.

MOR-13

ATTACHMENT 4D

INVESTMENT ACCOUNTS AND PETTY CASH REPORT

INVESTMENT ACCOUNTS

Each savings and investment account, i.e. certificates of deposits, money market accounts, stocks and bonds, etc., should be listed separately. Attach copies of account statements.

Type of Negotiable

Instrument	Face Value	Purchase Price	Date of Purchase	Current Market Value






TOTAL				(a)

PETTY CASH REPORT

The following Petty Cash Drawers/Accounts are maintained:

Location of Box/Account	(Column 2) Maximum Amount of Cash in Drawer/Acct.	(Column 3) Amount of Petty Cash On Hand At End of Month	(Column 4) Difference between (Column 2) and (Column 3)

TOTAL

$ (b)

For any Petty Cash Disbursements over $100 per transaction, attach copies of receipts. If there are no receipts, provide an explanation

TOTAL INVESTMENT ACCOUNTS AND PETTY CASH(a + b) $ (c)

(c)The total of this line on Attachment 4A, 4B and 4C plus the total of 4D must equal the

amount reported as “Ending Balance” on Schedule of Receipts and Disbursements (Page

MOR-2, Line 7).

MOR-14

ATTACHMENT 6

MONTHLY TAX REPORT

Name of Debtor: Digital Systems, Inc. Case Number: 11-20140-11-rdb

Reporting Period beginning September 1, 2011 Period ending September 30, 2011

TAXES OWED AND DUE

Report all unpaid post-petition taxes including Federal and State withholding FICA, State sales tax, property tax, unemployment tax, State workmen's compensation, etc.

Name of Taxing Authority	Date Payment Due	Description	Amount	Date Last Tax Return Filed	Tax Return Period






TOTAL			$

MOR-15

ATTACHMENT 7

SUMMARY OF OFFICER OR OWNER COMPENSATION

SUMMARY OF PERSONNEL AND INSURANCE COVERAGES

Name of Debtor: Digital Systems, Inc. Case Number: 11-20140-11-rdb

Reporting Period beginning September 1, 2011 Period ending September 30, 2011

Report all forms of compensation received by or paid on behalf of the Officer or Owner during the month. Include car allowances, payments to retirement plans, loan repayments, payments of Officer/Owner’s personal expenses, insurance premium payments, etc. Do not include reimbursement for business expenses Officer or Owner incurred and for which detailed receipts are maintained in the accounting records.

Name of Officer or Owner Title Description Amount Paid

David Owen CEO Services $2,000.00

David and Laura Owen and Mickie Koslofsky continue to provide services as the Debtor winds down at the hourly rate of $100.00. These services should not be extensive.

PERSONNEL REPORT

	Full Time	Part Time
Number of employees at beginning of period	0	0
Number hired during the period
Number terminated or resigned during period
Number of employees on payroll at end of period	0	0

CONFIRMATION OF INSURANCE

List all policies of insurance in effect, including but not limited to workers' compensation, liability, fire, theft, comprehensive, vehicle, health and life. For the first report, attach a copy of the declaration sheet for each type of insurance. For subsequent reports, attach a certificate of insurance for any policy in which a change occurs during the month (new carrier, increased policy limits, renewal, etc.).

Agent

Date

and/or

Carrier

Phone

Number

Policy

Number

Coverage

Type

Expiration

Date

Premium

Due

CBIZ Insurance, Kathy Beamis, 913-234-1918

CBIZ/Acuity Insurance Co. X13725 General Liab 4/1/2012 4/1/2012

CBIZ/Nat’l Union Fire 01-146-63-00 D&O 9/30/10 1/1/18

The following lapse in insurance coverage occurred this month:

Policy

Type

Date

Lapsed

Date

Reinstated

Reason for Lapse

G	Check here if U. S. Trustee has been listed as Certificate Holder for all insurance policies.

MOR-16

ATTACHMENT 8

SIGNIFICANT DEVELOPMENTS DURING REPORTING PERIOD

Information to be provided on this page, includes, but is not limited to: (1) financial transactions that are not reported on this report, such as the sale of real estate (attach closing statement); (2) non-financial transactions, such as the substitution of assets or collateral; (3) modifications to loan agreements; (4) change in senior management, etc. Attach any relevant documents.

We anticipate filing a Plan of Liquidation and Disclosure Statement as soon as possible after liquidation of the assets.

MOR-17

5:37 PM

10/09/11

ICOP DIGITAL, INC.

Reconciliation Summary

0-10070 - FNB Olathe Checking 013-960-2, Period Ending 09/30/2011

	Sep 30,11

Beginning Balance			192,422.72
Cleared Transactions
Checks and Payments -17 items Deposits and Credits -1		-28,125.33
Deposits and Credits -1 item		352.36
Total Cleared Transactions		-27,772.97

Cleared Balance			164,649.75
Uncleared Transactions
Checks and Payments - 3 items		-219.09
Total Uncleared Transactions		-219.09

Register Balance as of 09/30/2011			164,430.66
New Transactions
Checks and Payments - 3 items		-893.35
Total New Transactions		-893.35
Ending Balance			163,537.31

Mailing Address: P O Box 1500 Olathe, KS 66051 Main Office 913-782-3211 www.fnbolathe.com Customer Service 913-791-9111

Page: 1

***************AUTO**3_DIGIT 662 2049 0.7820 AT 0.365 9 1 207

DIGITAL SYSTEMS INC

15621 W 87TH ST PKWY STE 355

66219143521

LENEXA KS 66219-1435

PERIODIC STATEMENT Date: Sep 30, 2011 Period: Sep 01, 2011 to Sep 30, 2011 (30 Days )

Operating Account

ACCOUNT #: DDA - 0139602

Digital Systems Inc Debtor in Possession

Enclosures: 14

Beginning Balance as of 09/01/11

Deposits & Other Credits Charges & Fees Checks & Other Debits Average Balance Ending Balance as of 09/30/11

Charges And Fees

Commercial Service Charge

10.00 1.95 0.15

0.20

0.10 12.40

1 Maintenance Fee

13 Per Check Fee

1 Per Deposit Fee

4 ACH Debits

1 Deposit Item - On-Us

Less Earnings Credit

192,422.72

352.36 0.00 28,125.33 187,934.59

164,649.75

0.00

Transaction Information

Date Check#

09/22 09/06 09/07

09/27 09/30

Description Deposit

ACH Debit Payment ATT ACH Debit ONLINE PMT SPRINT Internet Initiated Transaction-

ACH Debit CHECK/ACC. DELUXE CHECK

Credit Amount 352.36

Debit Amount

91.42

91.75 30.25 60.00

ACH Debit

Page: 2

PERIODIC STATEMENT DIGITAL SYSTEMS INC

Sep 30, 2011

Check	Information
Date	Check#	Amount
09/07	9737	1, 000.00
09/02	9739 *	750.00
09/08	9740	29.11
09/09	9741	185.59
09/30	9742	50.00
09/26	9743	25.00
09/23	9744	531.00

Date	Check*	Amount
09/30	9745	11.00
09/26	9746	100.00
09/27	9747	199.00
09/28	9748	12,971.71
09/22	9749	2,000.00
09/29	9750	9,999.50

* Indicates a break in the Check number order.

Account #139602 Page 3 of 4

9/22/2011 0 $352.36

9/7/2011 9737 $1,000.00

9/2/2011 9739 $750.00

9/8/2011 9740 $29.11

9/9/2011 9741 $185.59

9/30/2011 9742 $50.00

9/26/2011 9743 $25.00

9/23/2011 9744 $531.00

9/30/2011 9745 $11.00

9/26/2011 9746 $100.00

9/27/2011 9747 $199.00

9/28/2011 9748 $12.971.71

Account #139602 – DDA Page 4 of 4

9/22/2011 9749 $2,000.00

9/29/2011 9750 $9,999.50

5:21 PM

10/09/11

ICOP DIGITAL, INC.
Reconciliation Summary
0-10080 - FNB Payroll Acct. 014-952-7, Period Ending 09/30/2011

	Sep 30, 11
Beginning Balance			352.36
Cleared Transactions		-352.36
Checks and Payments -1 item		-352.36
Total Cleared Transactions			0.00
Register Balance as of 09/30/2011			0.00
Ending Balance			0.00

ACCOUNT #: DDA - 0149527
Payroll Account
Digital Systems Inc
Beginning Balance as of 09/01/11
Deposits & Other Credits
Charges & Fees
Checks & Other Debits
Average Balance
352.36
0.00 0.00 352.36 336.34
0.00
Debit
Amount
352.36
Ending Balance
as of 09/23/11
Transaction Information
Date Check# Description
Enclosures: 1
Credit Amount
09/22 Force Posted Debit

	Sep 30, 11
ASSETS
Current Assets
Checking/Savings
Cash Accounts
0-10070 · FNB Olathe Checking 013-960-2		164,430.66
Total Cash Accounts		164,430.66
Foreign Cash Accounts
0-10200 · YEN Bank of America 11407006		-3,465.15
0-10210 · Yen Currency Fluctuation		3,465.15
Total Foreign Cash Accounts		0.00
Total Checking/Savings		164,430.66
Accounts Receivable
Accounts Receivable
0-11000 · Accounts Receivable - Trade		252,876.73
0-11010 · Accounts Receivable - Dealers		23,719.75
0-11100 · Allowance for Doubtful Accounts		-100,456.68
Total Accounts Receivable		176,139.80
Total Accounts Receivable		176,139.80
Other Current Assets
Prepaid Expenses
0-13000 · Prepaid Expenses		7,650.00
Total Prepaid Expenses		7,650.00
Other Current Assets
0-14000 · Deposits		-1,000.00
Total Other Current Assets		-1,000.00
Total Other Current Assets		6,650.00
Total Current Assets		347,220.46
TOTAL ASSETS		347,220.46
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
Accounts Payable
0-20000 · Accounts Payable		1,190,520.49
0-20100 · Accounts Payable - Chpt 11		4,941.02
Total Accounts Payable		1,195,461.51
Total Accounts Payable		1,195,461.51
Other Current Liabilities
Accrued Liabilities
Accrued Expenses
0-21000 · Accrued Expenses - Other		52,257.40
0-21010 · Accrued Property Taxes		26,686.29
0-21020 · Accrued Sales Tax		3,366.29
Total Accrued Expenses		82,309.98
Total Accrued Liabilities		82,309.98
Total Other Current Liabilities		82,309.98
Total Current Liabilities		1,277,771.49
Total Liabilities		1,277,771.49
Equity
Shareholders' Equity - CS
0-30000 · Bridge Warrant 2005 Proceeds		164,991.75
0-30010 · Stock Option Proceeds		52,650.00
0-30020 · Public Warrant Proceeds		769,171.09
0-30040 · Common Stock		36,343,227.14
0-30050 · Common Stock Restricted		1,560,000.00
0-30060 · Options Outstanding		2,076,270.47
0-30065 · Warrants		88,660.94
0-30070 · Offering Costs		-2,250,025.22
Total Shareholders' Equity - CS		38,804,946.17
Other Comprehensive Income
0-31000 · Deferred currency exchange		3,465.15
Total Other Comprehensive Income		3,465.15
0-32000 · Retained Deficit		-36,493,467.90
Net Income		-3,245,494.45
Total Equity		-930,551.03
TOTAL LIABILITIES & EQUITY		347,220.46

		Sep 11
Ordinary Income/Expense
Expense
	0-60400 · Professional & Contract Service
	0-60410 · Consulting
	2-60410 · Consulting - Admin		2,000.00
	Total 0-60410 · Consulting		2,000.00
	2-60420 · Accounting/Audit Fees - Admin		9,999.50
	Legal Fees
	2-60430 · Legal Expense		12,971.71
	Total Legal Fees		12,971.71
	Total 0-60400 · Professional & Contract Service		24,971.21
	0-60500 · Facilities & Maintenance Costs
	2-60550 · Rent Building		750.00
	2-60590 · Utility Expense		214.70
	Total 0-60500 · Facilities & Maintenance Costs		964.70
	0-60800 · Telecommunications
	6-60830 · Telephone Expense		183.17
	Total 0-60800 · Telecommunications		183.17
	0-61400 · Sales & Use; Property Taxes
	2-61420 · Taxes Franchise		531.00
	2-61430 · Taxes - Corporate		385.00
	Total 0-61400 · Sales & Use; Property Taxes		916.00
	0-61600 · Office Supplies and Expenses
	0-61620 · Office Supplies
	2-61620 · Office Supplies - Admin		30.25
	Total 0-61620 · Office Supplies		30.25
	Total 0-61600 · Office Supplies and Expenses		30.25
	0-62100 · Bank and Loan Charges
	2-62110 · Bank Charges		60.00
	Total 0-62100 · Bank and Loan Charges		60.00
Total Expense			27,125.33
Net Ordinary Income			-27,125.33
Net Income			-27,125.33

Attached files

Digital Systems, Inc. Reports

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