Exhibit 99.12

 

Monthly Operating Report

CASH BASIS

 

CASE NAME:	LPI Financial Services, Inc.
CASE NUMBER:	15-41996
JUDGE:	Russell Nelms

 

UNITED STATES BANKRUPTCY COURT

 

NORTHERN & EASTERN DISTRICTS OF TEXAS

 

REGION 6

 

MONTHLY OPERATING REPORT

 

MONTH ENDING:	July		2015
	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 (CASH BASIS-1 THROUGH CASH BASIS-6) 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		8/20/2015
PRINTED NAME OF RESPONSIBLE PARTY		DATE
PREPARER:
/s/ Colette Pieper		CEO
ORIGINAL SIGNATURE OF PREPARER		TITLE
Colette Pieper		8/20/2015
PRINTED NAME OF PREPARER		DATE

 

 

Monthly Operating Report

CASH BASIS-1

 

CASE NAME:	LPI Financial Services, Inc.
CASE NUMBER:	15-41996

 

CASH RECEIPTS AND		May 19, 2015 to				MONTH
DISBURSEMENTS		Jun 30, 2015				July 31,2015				MONTH				MONTH
1.   CASH - BEGINNING OF MONTH		$	1,744,873.40			$	2,122,124.24
RECEIPTS
2.   CASH SALES
3.   ACCOUNTS RECEIVABLE COLLECTIONS		$	644,823.02			$	43,875.34									2
4.   LOANS AND ADVANCES
5.   SALE OF ASSETS
6.   LEASE & RENTAL INCOME
7.   WAGES
8.   OTHER (ATTACH LIST)		$	35,484.43													1
9.   TOTAL RECEIPTS		$	680,307.45			$	43,875.34			$	-			$	-
DISBURSEMENTS
10.  NET PAYROLL
11.  PAYROLL TAXES PAID
12.  SALES,USE & OTHER TAXES PAID
13.  INVENTORY PURCHASES
14.  MORTAGE PAYMENTS
15.  OTHER SECURED NOTE PAYMENTS
16.  RENTAL & LEASE PAYMENTS
17.  UTILITIES
18.  INSURANCE
19.  VEHICLE EXPENSES
20.  TRAVEL
21.  ENTERTAINMENT
22.  REPAIRS & MAINTENANCE
23.  SUPPLIES (includes Postage of $9000)		$	9,507.37
24.  ADVERTISING
25.  HOUSEHOLD EXPENSES
26.  CHARITABLE CONTRIBUTIONS
27.  GIFTS
28.  OTHER (ATTACH LIST)		$	293,549.24			$	802,101.28									1
29.  TOTAL ORDINARY DISBURSEMENTS		$	303,056.61			$	802,101.28			$	-			$	-
REORGANIZATION EXPENSES
30.  PROFESSIONAL FEES
31.  U.S.  TRUSTEE FEES						$	325.00
32.  OTHER (ATTACH LIST)
33.  TOTAL REORGANIZATION EXPENSES		$	-			$	325.00
34.  TOTAL DISBURSEMENTS		$	303,056.61			$	802,426.28			$	-			$	-	4
35.  NET CASH FLOW		$	377,250.84			$	(758,550.94	)		$	-			$	-
36.  CASH - END OF MONTH		$	2,122,124.24			$	1,363,573.30			$	-			$	-

 

1

See Exhibit 1 for attached list of Item 8. Other receipts and Item 28. Other disbursements.

2

The amount previously reported as Accounts Receivable Collections for May 19,2015 to June 30,2015 was incorrect and has been corrected here.

4

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.

 

May 19,2015 to June 30,2015		$	253,441.77
July 31,2015		$	800,000.00

 

 

Monthly Operating Report

CASH BASIS-1A

 

2015

 

CASE NAME:	LPI Financial Services, Inc.
CASE NUMBER:	15-41996

 

CASH DISBURSEMENTS DETAIL

MONTH:

July

 

CASH DISBURSEMENTS 

DATE

PAYEE

PURPOSE

AMOUNT

TOTAL CASH DISBURSEMENTS

$

-

 

BANK ACCOUNT DISBURSEMENTS 

CK#		DATE		PAYEE		PURPOSE		AMOUNT
001005		7/1/2015		Preferred Trust Company, LLC		Flow Thru Premiums		$	1,439.22
Bank Fee		07/02/15		EPN		Credit Card Processing Fees		$	10.00
Bank Fee		07/14/15		Bank of Texas		Account Analysis Fees		$	664.56
Bank Fee		07/24/15		Bank of Texas		Acct Analysis Fee Reversed		$	(12.50	)
001006		7/27/2015		U.S. Trustee		U.S. Trustee Fees		$	325.00
Transfers		Various		Life Partners, Inc.		Transfer to LPI Acct#4080		$	800,000.00	4
		TOTAL BANK ACCOUNT DISBURSEMENTS						$	802,426.28
TOTAL DISBURSEMENTS FOR THE MONTH								$	802,426.28

 

4

See Footnote on CASH BASIS-1.

 

 

Monthly Operating Report

CASH BASIS-2

 

CASE NAME:	LPI Financial Services, Inc.
CASE NUMBER:	15-41996

 

BANK RECONCILIATIONS

 

		Acct #1				Acct #2				Acct #3
A. BANK:		Bank of Texas
B. ACCOUNT NUMBER:		4069
C. PURPOSE (TYPE):		Checking												TOTAL
1.   BALANCE PER BANK STATEMENT		$	1,363,573.30											$	1,363,573.30
2.   ADD: TOTAL DEPOSITS NOT CREDITED														$	-
3.   SUBTRACT: OUTSTANDING CHECKS														$	-
4.   OTHER RECONCILING ITEMS														$	-
5.   MONTH END BALANCE PER BOOKS		$	1,363,573.30			$	-			$	-			$	1,363,573.30
6.   NUMBER OF LAST CHECK WRITTEN			1006

 

INVESTMENT ACCOUNTS

 

DATE OF

TYPE OF

CURRENT

BANK, ACCOUNT NAME & NUMBER

PURCHASE

INSTRUMENT

VALUE

8.

9.

10.

11.  TOTAL INVESTMENTS

$

-

CASH

12.  CURRENCY ON HAND

13.  TOTAL CASH - END OF MONTH

$

1,363,573.30

 

 

Monthly Operating Report

CASH BASIS-3

 

CASE NAME:	LPI Financial Services, Inc.
CASE NUMBER:	15-41996

 

ASSETS OF THE ESTATE

 

SCHEDULE "A"		SCHEDULE				MONTH				MONTH
REAL PROPERTY		AMOUNT				June 30,2015				July 31,2015				MONTH
1.   NONE
2.
3.
4.   OTHER (ATTACH LIST)
5.   TOTAL REAL PROPERTY ASSETS		$	-			$	-			$	-			$	-
SCHEDULE "B"
PERSONAL PROPERTY
1.   CASH ON HAND
2.   CHECKING, SAVINGS, ETC.		$	1,744,873.40			$	2,122,124.24			$	1,363,573.30
3.   SECURITY DEPOSITS
4.   HOUSEHOLD GOODS
5.   BOOKS, PICTURES, ART
6.   WEARING APPAREL
7.   FURS AND JEWELRY
8.   FIREARMS & SPORTS EQUIPMENT
9.   INSURANCE POLICIES			unknown				unknown				unknown
10.  ANNUITIES
11.  EDUCATION
12.  RETIREMENT & PROFIT SHARING
13.  STOCKS
14.  PARTNERSHIPS & JOINT VENTURES
15.  GOVERNMENT & CORPORATE BONDS
16.  ACCOUNTS RECEIVABLE		$	6,899,018.44			$	6,980,205.78			$	7,734,889.82					3
17.  ALIMONY
18.  OTHER LIQUIDATED DEBTS
19.  EQUITABLE INTERESTS
20.  CONTINGENT INTERESTS
21.  OTHER CLAIMS
22.  PATENTS & COPYRIGHTS
23.  LICENSES & FRANCHISES
24.  CUSTOMER LISTS
25.  AUTOS, TRUCKS & OTHER VEHICLES
26.  BOATS & MOTORS
27.  AIRCRAFT
28.  OFFICE EQUIPMENT
29.  MACHINERY, FIXTURES & EQUIPMENT
30.  INVENTORY
31.  ANIMALS
32.  CROPS
33.  FARMING EQUIPMENT
34.  FARM SUPPLIES
35.  OTHER (ATTACH LIST)
36.  TOTAL PERSONAL PROPERTY ASSETS		$	8,643,891.84			$	9,102,330.02			$	9,098,463.12			$	-
37.  TOTAL ASSETS		$	8,643,891.84			$	9,102,330.02			$	9,098,463.12			$	-

 

3		Item 16. Accounts Receivable includes the following:
		Accounts Receivable-Platform Fees		$	2,741,107.18			$	2,565,972.91			$	2,523,536.79
		Intercompany Transfers to Life Partners, Inc.		$	4,157,911.26			$	4,414,232.87			$	5,211,353.03

 

 

Monthly Operating Report

CASH BASIS-4

 

CASE NAME:	LPI Financial Services, Inc.
CASE NUMBER:	15-41996

 

MONTH:

July

 

LIABILITIES OF THE ESTATE

 

PREPETITION		SCHEDULE
LIABILITIES		AMOUNT				PAYMENTS
1.   SECURED
2.   PRIORITY			unknown
3.   UNSECURED		$	9,000.77
4.   OTHER (ATTACH LIST)
5.   TOTAL PREPETITION LIABILITIES		$	9,000.77			$	-

 

POSTPETITION		DATE		AMOUNT				DUE		AMOUNT
LIABILITIES		INCURRED		OWED				DATE		PAST DUE
1.   FEDERAL INCOME TAXES
2.   FICA/MEDICARE
3.   STATE TAXES
4.   REAL ESTATE TAXES
5.   OTHER TAXES (ATTACH LIST)
6.   TOTAL TAXES				$	-					$	-
OTHER POSTPETITION LIABILITIES INCLUDING TRADE CREDITORS (LIST NAMES OF CREDITORS)
7.   American Express		07/28/15		$	1,501.42			08/12/15		$	-
8.   Pitney Bowes		07/20/15		$	1,158.82			08/19/15		$	-
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.  (IF ADDITIONAL ATTACH LIST)
30.  TOTAL OF LINES 7 - 29				$	2,660.24					$	-
31.  TOTAL POSTPETITION LIABILITIES				$	2,660.24					$	-

 

 

Monthly Operating Report

CASH BASIS-4A

 

CASE NAME:	LPI Financial Services, Inc.
CASE NUMBER:	15-41996

 

MONTH:

July

 

ACCOUNTS RECEIVABLE AGING

 

		SCHEDULE				MONTH				MONTH
		AMOUNT				June 30,2015				July 31,2015				MONTH
1.   0 - 30
2.   31 - 60		$	803,662.42
3.   61 - 90						$	605,497.15
4.   91 +		$	1,937,444.76			$	1,960,475.76			$	2,523,536.79
5.   TOTAL ACCOUNTS RECEIVABLE		$	2,741,107.18			$	2,565,972.91			$	2,523,536.79			$	-
6.   AMOUNT CONSIDERED UNCOLLECTIBLE
7.   ACCOUNTS RECEIVABLE (NET)		$	2,741,107.18			$	2,565,972.91			$	2,523,536.79			$	-

 

AGING OF POSTPETITION TAXES AND PAYABLES

 

		0 – 30				31-60				90+
TAXES PAYABLE		DAYS				DAYS				DAYS				Total
1.   FEDERAL														$	-
2.   STATE														$	-
3.   LOCAL														$	-
4.   OTHER (ATTACH LIST)														$	-
5.   TOTAL TAXES PAYABLE		$	-			$	-			$	-			$	-
6.   ACCOUNTS PAYABLE		$	2,660.24			$	-			$	-			$	2,660.24

 

STATUS OF POSTPETITION TAXES

 

BEGINNING

AMOUNT

ENDING

TAX

WITHHELD

AMOUNT

TAX

FEDERAL

LIABILITY

OR ACCRUED

PAID

LIABILITY

1.   WITHHOLDING

$

-

2.   FICA-EMPLOYEE

$

-

3.   FICA-EMPLOYER

$

-

4.   UNEMPLOYMENT

$

-

5.   INCOME

$

-

6.   OTHER (ATTACH LIST)

$

-

7.   TOTAL FEDERAL TAXES

$

-

$

-

$

-

$

-

STATE AND LOCAL

$

-

8.   WITHHOLDING

$

-

9.   SALES

$

-

10.  EXCISE

$

-

11.  UNEMPLOYMENT

$

-

12.  REAL PROPERTY

$

-

13.  PERSONAL PROPERTY

$

-

14.  OTHER (ATTACH LIST)

$

-

15.  TOTAL STATE & LOCAL

$

-

$

-

$

-

$

-

16.  TOTAL TAXES

$

-

$

-

$

-

$

-

 

 

Monthly Operating Report

CASH BASIS-5

 

CASE NAME:	LPI Financial Services, Inc.
CASE NUMBER:	15-41996

 

MONTH:

July

 

PAYMENTS TO INSIDERS AND PROFESSIONALS

 

INSIDERS
NAME		TYPE OF PAYMENT				AMOUNT PAID				TTL PD TO DATE
1.
2.
3.
4.
5.
6.
TOTAL PAYMENTS TO INSIDERS						$	-			$	-

 

PROFESSIONALS
		DATE OF COURT ORDER				AMOUNT				AMOUNT				TTL PAID				TOTAL INCURRED
NAME		AUTHORIZING PAYMENT				APPROVED				PAID				TO DATE				& UNPAID
1.   Asset Servicing Group																		$	271,656.00	11
2.   Bridgepoint Consulting																		$	122,816.30	11
3.   Epiq Bankruptcy Solutions										$	98,992.39			$	123,992.39			$	941,420.02	11&12
4.   Kim Hinkle, Attorney at Law																		$	79,363.00	11
5.   MMS Advisors																		$	147,000.00	11&13
6.   Munsch, Hardt, Kopf & Harr,P.C.																		$	350,000.00	11
7.   Thompson & Knight LLP																		$	1,887,500.00	11
8.   Tom Moran, US Trustee																		$	171,900.00	11
9.   Phillips Murrah																		$	128,431.00	11
TOTAL PAYMENTS TO PROFESSIONALS						$	-			$	98,992.39			$	123,992.39			$	4,100,086.32

 

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

 

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

 

11

Professional fees and expenses estimated and accrued prior to May 19th are reflected only on the books of Life Partners Holdings, Inc.  Thereafter, professional fees and expenses reflect the estimated aggregate, unallocated fees and expenses for all of the Debtors, and are noted on each of the Debtors MORs.

12

The amount paid to Epiq Bankruptcy Solutions was paid by Life Partners, Inc. Total paid to date also includes a $25,000 retainer paid LPI Financial Services on 5/5/2015.

13

MMS Advisors incurred fees and expenses March 13th - May 18th in the estimated amount of $230,000.00 that are not included here since their retention has not been approved for this period of time.

 

 

Monthly Operating Report

CASH BASIS-6

 

2015

 

CASE NAME:	LPI Financial Services, Inc.
CASE NUMBER:	15-41996

 

MONTH:

July

 

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		X

 

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

 

 

INSTALLMENT PAYMENTS

 

TYPE OF				PERIOD		PAYMENT AMOUNT
POLICY		CARRIER		COVERED		& FREQUENCY

 

 

LPI Financial Services, Inc. Case No. 15-41996

EXHIBIT 1

Other Receipts and Disbursements

31-Jul-15

 

		June 30,2015				July 31,2015
		Amount				Amount
OTHER RECEIPTS:
Dividends Forward to LPI		$	3.75
Flow Thru Premiums		$	32,447.83
Premiums Returned		$	3,011.52
Spoiled Postage Refund		$	21.33
		$	35,484.43			$	-

 

		Amount				Amount
OTHER DISBURSEMENTS:
Bank Fees		$	890.61			$	652.06
Credit Card Processing Fees		$	5,192.98			$	10.00
Dividends Forward to LPI		$	3.75
Flow Thru Premiums		$	31,008.61			$	1,439.22
Premiums Returned		$	3,011.52
Transfer to LPI		$	250,000.00			$	800,000.00
Transfer to LPI bank account		$	3,441.77
Voided Checks		$	-
		$	293,549.24			$	802,101.28