Attached files
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8-K - 8-K - LOCAL Corp | d22238d8k.htm |
Exhibit 99.1
UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA
In Re: | CHAPTER 11 (BUSINESS) | |||||
Local Corporation, | Case Number: | 8:15-bk-l3153 SC | ||||
dba Local.Com Corporation, | Operating Report Number: | #4 | ||||
Debtor(s). | For the Month Ending: | 30-Sep-15 |
I. CASH RECEIPTS AND DISBURSEMENTS
A. (GENERAL ACCOUNT*)
1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS |
5,875,876.96 | |||||||||
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2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS |
1,507,196.85 | |||||||||
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3. BEGINNING BALANCE: |
4,368,680.11 | |||||||||
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4. RECEIPTS DURING CURRENT PERIOD: |
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Accounts Receivable - Post-filing |
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Accounts Receivable - Pre-filing |
2,887,846.25 | |||||||||
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General Sales |
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Other (Specify) |
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** Other (Specify) |
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TOTAL RECEIPTS THIS PERIOD: |
2,887,846.25 | |||||||||
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5. BALANCE: |
7,256,526.36 | |||||||||
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6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD |
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Transfers to Other DIP Accounts (from page 2) |
0.00 | |||||||||
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Disbursements (from page 2) |
3,852,082.41 | |||||||||
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TOTAL DISBURSEMENTS THIS PERIOD:*** |
3,852,082.41 | |||||||||
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7. ENDING BALANCE: |
3,404,443.95 | |||||||||
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8. General Account Number(s): |
XXXXX1477 | |||||||||
Depository Name & Location: |
Wells Fargo |
* | All receipts must be deposited into the general account. |
** | Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale. |
*** | This amount should be the same as the total from page 2. |
Page 1 of 11
GENERAL ACCOUNT
BANK RECONCILIATION
Bank statement Date: | 8/31/2015 | Balance on Statement: | $3,404,443.95 | |||||||
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Plus deposits in transit (a): | Deposit Date | Deposit Amount | ||||||||
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TOTAL DEPOSITS IN TRANSIT |
0.00 | |||||||||
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Less Outstanding Checks (a): |
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Check Number | Check Date | Check Amount | ||||||||
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TOTAL OUTSTANDING CHECKS: |
0.00 | |||||||||
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Bank statement Adjustments: |
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Explanation of Adjustments- |
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ADJUSTED BANK BALANCE: |
$ | 3,404,443.95 | ||||||||
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* | It is acceptable to replace this form with a similar form |
** | Please attach a detailed explanation of any bank statement adjustment |
Page 2 of 11
I. CASH RECEIPTS AND DISBURSEMENTS
C. (Merchant Account)
1. TOTAL RECEIPTS PER ALL PRIOR MERCHANT ACCOUNT REPORTS |
2,312,067.02 | |||||
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2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR Merchant ACCOUNT REPORTS |
2,312,067.02 | |||||
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3. BEGINNING BALANCE: |
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4. RECEIPTS DURING CURRENT PERIOD: |
2,792,028.01 | |||||
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5. BALANCE: |
2,792,028.01 | |||||
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6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD TOTAL DISBURSEMENTS THIS PERIOD:*** |
2,792,028.01 | |||||
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7. ENDING BALANCE: |
0.00 | |||||
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8. Merchant Account Number(s): |
XXX0049 | |||||
Depository Name & Location: |
Square 1 Merchant Account |
Page 3 of 11
I. D SUMMARY SCHEDULE OF CASH
ENDING BALANCES FOR THE PERIOD:
(Provide a copy of monthly account statements for each of the below)
General Account: |
3,404,443.95 | |||||||||||
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Payroll Account: |
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Tax Account: |
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* Other Accounts: |
Merchant Account |
0.00 | ||||||||||
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*Other Monies: |
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**Petty Cash (from below): |
0.00 | |||||||||||
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TOTAL CASH AVAILABLE: |
3,404,443.95 | |||||||||||
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Petty Cash Transactions: Date |
Purpose | Amount | ||||||||||
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TOTAL PETTY CASH TRANSACTIONS: |
0.00 | |||||||||||
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* | Specify the Type of holding (e.g. CD, Savings Account, Investment Security), and the depository name, location & account# |
** | Attach Exhibit Itemizing all petty cash transactions |
Page 4 of 11
II. STATUS OF PAYMENTS TO SECURED CREDITORS, LESSORS
AND OTHER PARTIES TO EXECUTORY CONTRACTS
Creditor, Lessor, Etc. |
Frequency of Payments (Mo/Qtr) |
Amount of Payment | Post-Petition payments not made (Number) |
Total Due | ||||||
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TOTAL DUE: |
0.00 | |||||||||
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III. TAX LIABILITIES
FOR THE REPORTING PERIOD:
Gross Sales Subject to Sales Tax: |
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Total Wages Paid: |
336,079.60 | |||
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Total Post-Petition Amounts Owing |
Amount Delinquent | Date Delinquent Amount Due | ||||||||
Federal Withholding |
67,278.84 | |||||||||
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State Withholding |
27,143.77 | |||||||||
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FICA- Employers Share |
23,933.35 | |||||||||
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FICA- Employees Share |
25,020.33 | |||||||||
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Federal Unemployment |
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Sales and Use |
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Real Property |
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Other: |
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TOTAL: |
143,376.29 | 0.00 | ||||||||
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Page 5 of 11
IV. AGING OF ACCOUNTS PAYABLE AND RECEIVABLE
* Accounts Payable | Accounts Receivable | |||||||||||
Post-Petition | Pre-Petition | Post-Petition | ||||||||||
30 days or less |
2,586,406.61 | 2,573,627.43 | ||||||||||
31 - 60 days |
1,363,848.28 | |||||||||||
61 - 90 days |
925,887.03 | |||||||||||
91 - 120 days |
1,054,944.16 | |||||||||||
Over 120 days |
3,469,016.48 | |||||||||||
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TOTAL: |
2,586,406.61 | 5,449,847.67 | 3,937,475.71 | |||||||||
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V. INSURANCE COVERAGE
Name of Carrier | Amount of Coverage |
Policy Expiration Date |
Premium Paid Through (Date) |
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General Liability |
Hartford | 3,000,000.00 | 10/18/2016 | Full Paid | ||||||||||
Workers Compensation |
One Beacon | 1,000,000.00 | 4/10/2016 | Full Paid | ||||||||||
Casualty |
Hartford | 5,764,000.00 | 10/18/2016 | Full Paid | ||||||||||
Vehicle |
Hartford | 1,000,000.00 | 10/18/2016 | Full Paid | ||||||||||
Others: |
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VI. UNITED STATES TRUSTEE QUARTERLY FEES
(TOTAL PAYMENTS)
Quarterly Period Ending (Date) |
Total Disbursements |
Quarterly Fees | Date Paid | Amount Paid | Quarterly Fees Still Owing |
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30-Jun-2015 |
256,888.91 | 1,950.00 | 1-Aug-2015 | 1,950.00 | 0.00 | |||||||||||||||
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1,950.00 | 1,950.00 | 0.00 | ||||||||||||||||||
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* | Post-Petition Accounts Payable SHOULD NOT include professionals fees and expenses which have been incurred but not yet awarded by the court. Post-Petition Accounts Payable SHOULD include professionals fees and expenses authorized by Court Order but which remain unpaid as of the close of the period report |
Page 6 of 11
VII SCHEDULE OF COMPENSATION PAID TO INSIDERS
Name of Insider |
Date of Order Authorizing Compensation |
* Authorized Gross Compensation |
Gross Compensation Paid During the Month |
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Ken Cragun |
7/6/2015 | 31,748.00 | 31,748.00 | |||||||||
Scott Reinke |
7/6/2015 | 30,806.73 | 30,806.73 | |||||||||
Fred Thiel |
7/6/2015 | 49,928.07 | 49,928.07 | |||||||||
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VIII. SCHEDULE OF OTHER AMOUNTS PAID TO INSIDERS
Name of Insider |
Date of Order Authorizing Compensation |
Description | Amount Paid During the Month | |||
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* | Please indicate how compensation was identified in the order (e.g. $1,000/week, $2,500/month) |
Page 7 of 11
IX. PROFIT AND LOSS STATEMENT
(ACCRUAL BASIS ONLY)
Current Month | Cumulative Post-Petition | |||||||
Sales/Revenue: |
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Gross Sales/Revenue |
2,782,002 | 9,644,704 | ||||||
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Less: Returns/Discounts |
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Net Sales/Revenue |
2,782,002 | 9,644,704 | ||||||
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Cost of Goods Sold: |
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Beginning Inventory at cost |
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TAC |
2,271,074 | 7,847,441 | ||||||
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Less: Ending Inventory at cost |
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Cost of Goods Sold (COGS) |
2,271,074 | 7,847,441 | ||||||
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Gross Profit |
510,928 | 1,797,263 | ||||||
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Other Operating Income (Itemize) |
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Operating Expenses: |
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PayrollInsiders |
88,667 | 286,153 | ||||||
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PayrollOther Employees |
444,797 | 1,436,634 | ||||||
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Payroll Taxes |
40,810 | 131,793 | ||||||
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Benefits |
62,353 | 197,139 | ||||||
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Connectivity & Content |
113,228 | 367,140 | ||||||
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Credit Card Fees |
15,000 | 46,633 | ||||||
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Other Taxes (Itemize) |
0 | |||||||
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Depreciation and Amortization |
343,195 | 1,099,456 | ||||||
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Rent ExpenseReal Property |
26,761 | 80,283 | ||||||
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Lease ExpensePersonal Property |
2,300 | 19,967 | ||||||
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Insurance |
6,403 | 21,006 | ||||||
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Real Property Taxes |
0 | |||||||
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Telephone, Utilities, Office Expense |
56,610 | 174,077 | ||||||
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Repairs and Maintenance |
9,010 | 28,290 | ||||||
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Travel and Entertainment (Itemize) |
0 | 0 | ||||||
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Consulting |
13,000 | 43,200 | ||||||
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Advertising and Marketing |
32,750 | 105,775 | ||||||
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Miscellaneous Operating Expenses (Itemize) |
0.00 | 0 | ||||||
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Total Operating Expenses |
1,254,884 | 4,037,545 | ||||||
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Net Gain/(Loss) from Operations |
(743,956 | ) | (2,240,282 | ) | ||||
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Non-Operating Income: |
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Interest Income |
0 | 0 | ||||||
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Net Gain on Sale of Assets (Itemize) |
0 | 0 | ||||||
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Other (Itemize) |
0 | 0 | ||||||
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Total Non-Operating income |
0 | 0 | ||||||
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Non-Operating Expenses: |
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Interest Expense |
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Legal and Professional (Itemize) |
57,197 | 303,580 | ||||||
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Stock Compensation |
45,096 | 90,192 | ||||||
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Other (Itemize) |
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Total Non-Operating Expenses |
102,293 | 393,772 | ||||||
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NET INCOME/(LOSS) |
(246,249 | ) | (2,634,054 | ) | ||||
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(Attach exhibit listing all itemizations required above)
Page 8 of 11
X. BALANCE SHEET
(ACCRUAL BASIS ONLY)
Current Month End | ||||||||
ASSETS |
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Current Assets: |
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Unrestricted Cash |
3,404,443.95 | |||||||
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Restricted Cash |
0.00 | |||||||
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Accounts Receivable |
9,387,323.38 | |||||||
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Inventory |
0.00 | |||||||
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Notes Receivable |
0.00 | |||||||
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Prepaid Expenses |
824,833.00 | |||||||
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Other (Itemize) |
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Total Current Assets |
13,616,600.33 | |||||||
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Property, Plant, and Equipment |
21,135,233.00 | |||||||
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Accumulated Depreciation/Depletion |
(20,615,410.00 | ) | ||||||
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Net Property, Plant, and Equipment |
519,823.00 | |||||||
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Other Assets (Net of Amortization): |
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Due from Insiders |
0.00 | |||||||
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Goodwill |
19,280,579.00 | |||||||
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Intangible Assets |
1,606,137.00 | |||||||
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Deposits |
60,005.00 | |||||||
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Other (Itemize) |
0.00 | |||||||
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|||||
Total Other Assets |
20,946,721.00 | |||||||
|
|
|||||||
TOTAL ASSETS |
35,083,144.33 | |||||||
|
|
|||||||
LIABILITIES |
||||||||
Post-petition Liabilities: |
||||||||
|
|
|||||||
Accounts Payable |
2,586,406.61 | |||||||
|
|
|||||||
Taxes Payable |
0.00 | |||||||
|
|
|||||||
Notes Payable |
0.00 | |||||||
|
|
|||||||
Professional fees |
0.00 | |||||||
|
|
|||||||
Secured Debt |
0.00 | |||||||
|
|
|||||||
Other (Itemize) |
||||||||
|
|
|
|
|||||
Total Post-petition Liabilities |
2,586,406.61 | |||||||
|
|
|||||||
Pre-petition Liabilities: |
||||||||
Secured Liabilities |
1,974,099.94 | |||||||
|
|
|||||||
Priority Liabilities |
184,952.00 | |||||||
|
|
|||||||
Unsecured Liabilities |
26,404,640.72 | |||||||
|
|
|||||||
Deferred Revenue |
112,462.00 | |||||||
|
|
|
|
|||||
Total Pre-petition Liabilities |
28,676,154.66 | |||||||
|
|
|||||||
TOTAL LIABILITIES |
31,262,561.27 | |||||||
|
|
|||||||
EQUITY: |
||||||||
Pre-petition Owners Equity |
4,564,539 | |||||||
|
|
|||||||
Post-petition Profit/(Loss) |
(743,956.00 | ) | ||||||
|
|
|||||||
Direct Charges to Equity |
0.00 | |||||||
|
|
|
|
|||||
TOTAL EQUITY |
3,820,583.06 | |||||||
|
|
|||||||
TOTAL LIABILITIES & EQUITY | 35,083,144.33 | |||||||
|
|
Page 9 of 11
XI. QUESTIONNAIRE
No | Yes | |||||
1. | Has the debtor-in-possession made any payments on its pre-petition unsecured debt, except as have been authorized by the court? If Yes, explain below:
|
X | ||||
|
|
| ||||
No | Yes | |||||
2. | Has the debtor-in-possession during this reporting period provided compensation or remuneration to any officers, directors, principals, or other insiders without appropriate authorization? If Yes, explain below:
|
X | ||||
|
|
| ||||
3. | State what progress was made during the reporting period toward filing a plan of reorganization Selected a stalking horse bidder candidate, working on an asset purchase agreement and drafting Section 363 bidding procedures.
|
|||||
|
||||||
4. | Describe potential future developments which may have a significant impact on the case: Future developments include the possible sale of assets through a Section 363 sales process.
|
|||||
|
||||||
5. | Attach copies of all Orders granting relief from the automatic stay that were entered during the reporting period.
|
|||||
No | Yes | |||||
6. | Did you receive any exempt income this month, which is not set forth in the operating report? If Yes, please set forth the amounts and sources of the income below.
|
|||||
|
|
|
I, | Kenneth S. Cragun, Chief Financial Officer, |
declare under penalty of perjury that I have fully read and understood the foregoing debtor-in- possession operating report and that the information contained herein is true and complete to the best of my knowledge.
10-15-2015 |
/s/ Kenneth S. Cragun | |||
Date | Principal for debtor-in-possession | |||
Page 10 of 11