Exhibit 99.3

 

	Monthly Operating Report
	ACCRUAL BASIS

 

CASE  NAME:	LPI Financial Services, Inc.
CASE  NUMBER:	15-40289 (Jointly Administered)
JUDGE:	Russell Nelms

 

UNITED STATES BANKRUPTCY COURT

 

NORTHERN & EASTERN DISTRICTS OF TEXAS

 

REGION 6

 

MONTHLY OPERATING REPORT

 

MONTH  ENDING:	March		2016
	MONTH		YEAR

 

IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT, AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY) IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.

 

RESPONSIBLE  PARTY:
/s/ H. Thomas Moran II		Trustee
ORIGINAL  SIGNATURE  OF  RESPONSIBLE  PARTY		TITLE
H. Thomas Moran II		4/20/2016
PRINTED NAME OF RESPONSIBLE PARTY		DATE
PREPARER:
/s/ Paula Toy		Vice-President of Finance
ORIGINAL  SIGNATURE  OF  PREPARER		TITLE
Paula Toy		4/20/2016
PRINTED NAME OF PREPARER		DATE

 

  

Monthly Operating Report

ACCRUAL BASIS-1

 

CASE NAME:	LPI Financial Services, Inc.
CASE  NUMBER:	15-40289 (Jointly Administered)

 

COMPARATIVE BALANCE SHEET

 

				SCHEDULE AMOUNT				JANUARY				FEBRUARY				MARCH
ASSETS
1.		UNRESTRICTED  CASH		$	1,744,873			$	25,314			$	37,524			$	610,137
2.		RESTRICTED  CASH
3.		TOTAL  CASH		$	1,744,873			$	25,314			$	37,524			$	610,137
4.		ACCOUNTS  RECEIVABLE  (NET)		$	2,741,107														2
5.		INVENTORY
6.		NOTES  RECEIVABLE
7.		PREPAID  EXPENSES
8.		OTHER  (ATTACH  LIST)						$	0			$	0			$	0
9.		TOTAL  CURRENT  ASSETS		$	4,485,981			$	25,314			$	37,524			$	610,137
10.		PROPERTY,  PLANT  &  EQUIPMENT
11.		LESS:  ACCUMULATED DEPRECIATION/DEPLETION
12.		NET  PROPERTY,  PLANT  & EQUIPMENT		$	0			$	0			$	0			$	0
13.		DUE FROM INSIDERS		$	4,157,912														1
14.		OTHER  ASSETS  -  NET  OF AMORTIZATION  (ATTACH  LIST)
15.		OTHER (ATTACH LIST)
16.		TOTAL ASSETS		$	8,643,892			$	25,314			$	37,524			$	610,137
POSTPETITION  LIABILITIES
17.		ACCOUNTS  PAYABLE						$	0			$	0			$	0
18.		TAXES  PAYABLE
19.		NOTES  PAYABLE
20.		PROFESSIONAL  FEES						$	152,290			$	240,281			$	310,215
21.		SECURED  DEBT
22.		OTHER  (ATTACH  LIST)						$	5,138			$	5,138			$	5,463		3
23.		TOTAL  POSTPETITION LIABILITIES						$	157,428			$	245,419			$	315,678
PREPETITION  LIABILITIES
24.		SECURED  DEBT
25.		PRIORITY  DEBT		unknown
26.		UNSECURED  DEBT		$	9,001			$	1,062			$	1,062			$	1,062
27.		OTHER (ATTACH LIST)
28.		TOTAL  PREPETITION  LIABILITIES		$	9,001			$	1,062			$	1,062			$	1,062
29.		TOTAL LIABILITIES		$	9,001			$	158,490			$	246,480			$	316,739
EQUITY
30.		PREPETITION  OWNERS'  EQUITY						$	5,901,723			$	5,901,723			$	5,901,723
31.		POSTPETITION  CUMULATIVE PROFIT  OR  (LOSS)						$	1,341,818			$	1,264,986			$	1,755,957
32.		DIRECT  CHARGES  TO  EQUITY (ATTACH  EXPLANATION)						$	(7,376,718	)		$	(7,375,666	)		$	(7,364,283	)	1
33.		TOTAL  EQUITY						$	(133,176	)		$	(208,956	)		$	293,398
34.		TOTAL  LIABILITIES & OWNERS' EQUITY						$	25,314			$	37,524			$	610,137

 

1

This is Intercompany Due From Life Partners, Inc. reported on Schedule B Item 16 and shown above under Item 13. Due From Insiders.

2

The Debtor LPIFS records receipts on a cash basis and accordingly, does not carry receivable balances. The Schedules note a receivable balance as if receipts were recorded on an accrual basis as of the petition date.

3

The amount shown here for Janauary was previously included in the amounts shown on Line 20. Professional Fees.

 

  

	Monthly Operating Report
	SUPPLEMENT TO
	ACCRUAL BASIS-1

 

CASE NAME:	LPI Financial Services, Inc.
CASE  NUMBER:	15-40289 (Jointly Administered)

 

COMPARATIVE BALANCE SHEET

 

				SCHEDULE AMOUNT				JANUARY				FEBRUARY				MARCH
POSTPETITION  LIABILITIES
22.		US TRUSTEE FEES						$	5,138			$	5,138			$	5,463
22		TOTAL  OTHER POSTPETITION LIABILITIES						$	5,138			$	5,138			$	5,463

 

  

	Monthly Operating Report
	ACCRUAL BASIS-2

 

CASE  NAME:	LPI Financial Services, Inc.
CASE  NUMBER:	15-40289 (Jointly Administered)

 

INCOME STATEMENT				DECEMBER				JANUARY				FEBRUARY				MARCH
REVENUES
1.		GROSS  REVENUES		$	28,943			$	15,452			$	12,364			$	572,710
2.		LESS:  RETURNS & DISCOUNTS
3.		NET  REVENUE		$	28,943			$	15,452			$	12,364			$	572,710
COST  OF  GOODS  SOLD
4.		MATERIAL
5.		DIRECT  LABOR
6.		DIRECT  OVERHEAD
7.		TOTAL  COST  OF  GOODS  SOLD		$	0			$	0			$	0			$	0
8.		GROSS  PROFIT		$	28,943			$	15,452			$	12,364			$	572,710
OPERATING  EXPENSES
9.		OFFICER / INSIDER  COMPENSATION
10.		SELLING  &  MARKETING
11.		GENERAL & ADMINISTRATIVE		$	270			$	213			$	154			$	97
12.		RENT  &  LEASE
13.		OTHER (ATTACH LIST)
14.		TOTAL  OPERATING  EXPENSES		$	270			$	213			$	154			$	97
15.		INCOME  BEFORE  NON-OPERATING INCOME & EXPENSE		$	28,673			$	15,239			$	12,210			$	572,613
OTHER  INCOME  &  EXPENSES
16.		NON-OPERATING INCOME (ATTACH LIST)
17.		NON-OPERATING EXPENSE (ATTACH  LIST)
18.		INTEREST  EXPENSE
19.		DEPRECIATION / DEPLETION
20.		AMORTIZATION
21.		OTHER (ATTACH LIST)
22.		NET  OTHER INCOME & EXPENSES		$	0			$	0			$	0			$	0
REORGANIZATION  EXPENSES
23.		PROFESSIONAL  FEES		$	63,226			$	88,755			$	88,693			$	80,917
24.		U.S.  TRUSTEE  FEES		$	0			$	325			$	0			$	325
25.		OTHER (ATTACH LIST)		$	560			$	431			$	350			$	400		1
26.		TOTAL  REORGANIZATION  EXPENSES		$	63,786			$	89,511			$	89,043			$	81,642
27.		INCOME  TAX
28.		NET  PROFIT  (LOSS)		$	(35,113	)		$	(74,272	)		$	(76,832	)		$	490,971

 

1

Expenses for Relativity Hosting, Privilege Log Export and Trustee Expense Reimbursement.

 

  

	Monthly Operating Report
	ACCRUAL BASIS-3

 

CASE  NAME:	LPI Financial Services, Inc.
CASE  NUMBER:	15-40289 (Jointly Administered)

 

																QUARTER
CASH RECEIPTS AND DISBURSEMENTS				JANUARY				FEBRUARY				MARCH				ENDED 3/31/2016
1.		CASH - BEGINNING  OF  MONTH		$	510,400			$	25,314			$	37,524
RECEIPTS FROM OPERATIONS
2.		CASH  SALES		$	15,452			$	12,364			$	572,710			$	600,526
COLLECTION OF ACCOUNTS RECEIVABLE
3.		PREPETITION														$	0
4.		POSTPETITION														$	0
5.		TOTAL  OPERATING  RECEIPTS		$	15,452			$	12,364			$	572,710			$	600,526
NON-OPERATING RECEIPTS
6.		LOANS  &  ADVANCES (ATTACH  LIST)														$	0
7.		SALE  OF  ASSETS														$	0
8.		OTHER  (ATTACH  LIST)		$	1,334			$	11,835			$	7,938			$	21,107
9.		TOTAL  NON-OPERATING  RECEIPTS		$	1,334			$	11,835			$	7,938			$	21,107
10.		TOTAL  RECEIPTS		$	16,786			$	24,199			$	580,647			$	621,633
11.		TOTAL  CASH  AVAILABLE		$	527,186			$	49,513			$	618,171
OPERATING DISBURSEMENTS
12.		NET  PAYROLL														$	0
13.		PAYROLL TAXES PAID														$	0
14.		SALES,  USE  &  OTHER  TAXES  PAID														$	0
15.		SECURED / RENTAL / LEASES														$	0
16.		UTILITIES														$	0
17.		INSURANCE														$	0
18.		INVENTORY  PURCHASES														$	0
19.		VEHICLE  EXPENSES														$	0
20.		TRAVEL														$	0
21.		ENTERTAINMENT														$	0
22.		REPAIRS  &  MAINTENANCE														$	0
23.		SUPPLIES														$	0
24.		ADVERTISING														$	0
25.		OTHER  (ATTACH  LIST)		$	501,547			$	11,989			$	8,034			$	521,571
26.		TOTAL  OPERATING  DISBURSEMENTS		$	501,547			$	11,989			$	8,034			$	521,571
REORGANIZATION EXPENSES
27.		PROFESSIONAL  FEES														$	0
28.		U.S.  TRUSTEE  FEES		$	325											$	325
29.		OTHER  (ATTACH  LIST)														$	0
30.		TOTAL  REORGANIZATION  EXPENSES		$	325			$	0			$	0			$	325
31.		TOTAL  DISBURSEMENTS		$	501,872			$	11,989			$	8,034			$	521,896		1
32.		NET  CASH  FLOW		$	(485,086	)		$	12,210			$	572,613			$	99,737
33.		CASH - END OF MONTH		$	25,314			$	37,524			$	610,137

 

1

Total Disbursements includes the following amounts that are NOT disbursements, but are transfers of funds between bank accounts (from LPI Financial Services account to Life Partners, Inc. account) for the periods shown below.

 

January 31, 2016		$	500,000.00
February 29, 2016		$	-
March 31, 2016		$	-

 

  

	Monthly Operating Report
	SUPPLEMENT TO
	ACCRUAL BASIS-3

 

CASE  NAME:	LPI Financial Services, Inc.
CASE  NUMBER:	15-40289 (Jointly Administered)

 

																QUARTER
CASH  RECEIPTS AND DISBURSEMENTS				JANUARY				FEBRUARY				MARCH				ENDED 3/31/2016
NON-OPERATING RECEIPTS (OTHER)
8.		FLOW THRU PREMIUMS		$	1,334			$	11,450			$	7,938			$	20,721
8.		PREMIUMS RETURNED						$	386							$	386
8.		RECEIPTS TO BE FORWARDED TO LPI														$	0
9.		TOTAL  NON-OPERATING  RECEIPTS		$	1,334			$	11,835			$	7,938			$	21,107
OPERATING  DISBURSEMENTS
25.		BANK FEES		$	213			$	154			$	97			$	463
25.		CREDIT CARD PROCESSING FEES														$	0
25.		FLOW THRU PREMIUMS		$	1,334			$	11,450			$	7,938			$	20,721
25.		PREMIUMS RETURNED						$	386							$	386
25.		TRANSFER TO LPI BANK ACCOUNT		$	500,000											$	500,000
25		TOTAL  OPERATING  DISBURSEMENTS (OTHER)		$	501,547			$	11,989			$	8,034			$	521,571

 

  

	Monthly Operating Report
	ACCRUAL BASIS-4

 

CASE  NAME:	LPI Financial Services, Inc.
CASE  NUMBER:	15-40289 (Jointly Administered)

 

ACCOUNTS RECEIVABLE  AGING				SCHEDULE AMOUNT				JANUARY				FEBRUARY				MARCH
1.		0-30
2.		31-60		$	803,662
3.		61-90
4.		91+		$	1,937,445
5.		TOTAL  ACCOUNTS  RECEIVABLE		$	2,741,107			$	0			$	0			$	0
6.		AMOUNT  CONSIDERED  UNCOLLECTIBLE
7.		ACCOUNTS  RECEIVABLE  (NET)		$	2,741,107			$	0			$	0			$	0		1

 

AGING OF POSTPETITION TAXES AND PAYABLES

MONTH:

March 2016

 

				0-30				31-60				61-90				91+
TAXES  PAYABLE				DAYS				DAYS				DAYS				DAYS				TOTAL
1.		FEDERAL																		$	0
2.		STATE																		$	0
3.		LOCAL																		$	0
4.		OTHER (ATTACH LIST)																		$	0
5.		TOTAL  TAXES  PAYABLE		$	0			$	0			$	0			$	0			$	0
6.		ACCOUNTS  PAYABLE																		$	0

 

STATUS OF POSTPETITION TAXES

MONTH:

March 2016

 

				BEGINNING				AMOUNT								ENDING
				TAX				WITHHELD AND/				AMOUNT				TAX
FEDERAL				LIABILITY				0R  ACCRUED				PAID				LIABILITY
1.		WITHHOLDING														$	0
2.		FICA-EMPLOYEE														$	0
3.		FICA-EMPLOYER														$	0
4.		UNEMPLOYMENT														$	0
5.		INCOME														$	0
6.		OTHER (ATTACH LIST)														$	0
7.		TOTAL  FEDERAL  TAXES		$	0			$	0			$	0			$	0
STATE  AND  LOCAL
8.		WITHHOLDING														$	0
9.		SALES														$	0
10.		EXCISE														$	0
11.		UNEMPLOYMENT														$	0
12.		REAL  PROPERTY														$	0
13.		PERSONAL  PROPERTY														$	0
14.		OTHER (ATTACH LIST)														$	0
15.		TOTAL  STATE  &  LOCAL		$	0			$	0			$	0			$	0
16.		TOTAL  TAXES		$	0			$	0			$	0			$	0

 

1

The Debtor LPIFS records receipts on a cash basis and accordingly does not carry receivable balances. The Schedules note a receivable balance as if receipts were recorded on an accrual basis as of the petition date.

 

  

	Monthly Operating Report
	ACCRUAL BASIS-5

 

CASE NAME:	LPI Financial Services, Inc.
CASE NUMBER:	15-40289 (Jointly Administered)

 

								MONTH:				March 2016
BANK  RECONCILIATIONS
				Account #1				Account #2				Account #3
A. BANK:				Bank of Texas
B. ACCOUNT NUMBER:				4069												TOTAL
C. PURPOSE (TYPE):				Checking
1.		BALANCE  PER  BANK  STATEMENT		$	616,823											$	616,823
2.		ADD:  TOTAL  DEPOSITS  NOT  CREDITED		$	28,976											$	28,976
3.		SUBTRACT:  OUTSTANDING  CHECKS		$	35,644											$	35,644
4.		OTHER  RECONCILING  ITEMS		$	(18	)										$	(18	)
5.		MONTH  END  BALANCE  PER  BOOKS		$	610,137			$	0			$	0			$	610,137
6.		NUMBER  OF  LAST  CHECK  WRITTEN			1038

 

INVESTMENT ACCOUNTS

 

				DATE OF				TYPE OF				PURCHASE				CURRENT
BANK,  ACCOUNT  NAME  &  NUMBER				PURCHASE				INSTRUMENT				PRICE				VALUE
7.
8.
9.
10.
11.		TOTAL  INVESTMENTS										$	0			$	0
CASH
12.		CURRENCY ON HAND														$	0
13.		TOTAL  CASH  -  END  OF MONTH														$	610,137

 

 

	Monthly Operating Report
	ACCRUAL BASIS-6

 

CASE  NAME:	LPI Financial Services, Inc.
CASE  NUMBER:	15-40289 (Jointly Administered)

 

MONTH:

March 2016

 

PAYMENTS TO INSIDERS AND PROFESSIONALS

 

		INSIDERS
				TYPE  OF		AMOUNT				TOTAL PAID
		NAME		PAYMENT		PAID				TO DATE
1.		Advance Trust & Life Escrow Services		Premium Remittance		$	7,938			$	118,868
2.		Purchase Escrow Services, LLC		Premium Remittance		$	0			$	3,803
3.
4.
5.
6.		TOTAL  PAYMENTS TO  INSIDERS				$	7,938			$	122,671

 

PROFESSIONALS1
				DATE  OF  COURT														TOTAL
				ORDER  AUTHORIZING		AMOUNT				AMOUNT				TOTAL  PAID				INCURRED
NAME				PAYMENT		APPROVED				PAID				TO  DATE				& UNPAID
1.		Asset Servicing Group		12/15/15		$	955,564			$	135,590			$	955,564			$	273,879
2.		Bridgepoint Consulting		12/15/15		$	898,979			$	114,517			$	898,979			$	415,541
3.		Epiq Bankruptcy Solutions		05/22/15		$	3,290,276			$	217,290			$	2,892,313			$	205,672
4.		Forshey & Prostok, LLP		04/28/15		$	154,409							$	154,409			$	0
5.		Kevin Buchanan & Associates		07/01/15		$	140,235							$	140,235			$	0
6.		Kim Hinkle, Attorney at Law		12/15/15		$	235,457			$	20,053			$	235,457			$	72,532
7.		MMS Advisors		03/25/16		$	246,992											$	246,992
8.		Munsch, Hardt, Kopf & Harr, P.C.		12/15/15		$	1,810,924			$	137,121			$	1,810,924			$	871,023
9.		Phillips Murrah		12/15/15		$	174,638			$	8,212			$	174,638			$	131,695
10.		Pronske Goolsby & Kathman, P.C.		05/05/15		$	128,618							$	128,618			$	0
11.		Thompson & Knight, LLP		12/15/15		$	8,304,511							$	8,307,945			$	5,382,210	2
12.		Tom Moran, US Trustee		12/18/15		$	11,850							$	11,850			$	785,953	3
13.		Smith, Jackson, Boyer & Bovard, PLLC		12/18/15		$	56,507			$	1,308			$	56,507			$	6,733
14.		Predictive Resources		11/19/15		$	202,711			$	38,194			$	202,711			$	186,942
15.		D3G Capital Management LLC/Lewis & Ellis Inc		12/03/15		$	152,460			$	63,548			$	152,460			$	70,465
16.		Barbara Pope		12/15/15		$	42,477							$	42,477			$	0	4
17.		TOTAL  PAYMENTS TO  PROFESSIONALS								$	735,833			$	16,165,087			$	8,649,637	1

  

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS

 

				SCHEDULED				AMOUNTS
				MONTHLY				PAID				TOTAL
				PAYMENTS				DURING				UNPAID
NAME OF CREDITOR				DUE				MONTH				POSTPETITION
1.
2.
3.
4.
5.
6.		TOTAL		$	0			$	0			$	0

 

1		Professional fee and expense allocations are estimated by each firm across the 3 debtors, and are booked accordingly in the books and records.  Payments are made based on cash availability and intercompany accounting.  The total of all aggregate unallocated fees and expenses for the 3 debtors are reflected in the schedule above.
2		Total Paid To Date for Thompson & Knight includes $3,434 in filing fees paid twice (at the time of filing and when the fee application was paid) which is not duplicated in Amount Approved.
3		Total Paid To Date excludes out-of-pocket expense reimbursements on behalf of subsidiary debtors.
4		Amounts shown do not include employee/contractor payments.

 

 

	Monthly Operating Report
	ACCRUAL BASIS-7

 

CASE  NAME:	LPI Financial Services, Inc.
CASE  NUMBER:	15-40289 (Jointly Administered)

 

MONTH:

March 2016

 

QUESTIONNAIRE

 

			YES		NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?				X
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?				X
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?				X
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?				X
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?				X
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?				X
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?				X
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?				X
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?				X
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?				X
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?				X
12.	ARE ANY WAGE PAYMENTS PAST DUE?				X

 

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

  

INSURANCE

 

			YES		NO
1.	ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?		X
2.	ARE ALL PREMIUM PAYMENTS PAID CURRENT?		X
3.	PLEASE ITEMIZE POLICIES BELOW.

 

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.

 

INSTALLMENT PAYMENTS
TYPE OF							PAYMENT AMOUNT
POLICY		CARRIER		PERIOD COVERED			& FREQUENCY