Exh 99.1
676A Ninth Avenue #211
New York, NY 10036
Tel: (646) 290-6496
Fax: (646) 224-8377
David C. McGrail (DM 3904)
Counsel To PubliCARD, Inc.
UNITED STATES BANKRUPTCY COURT | ||||||||||
SOUTHERN DISTRICT OF NEW YORK | ||||||||||
: | ||||||||||
: | Chapter 11 | |||||||||
In re: | PUBLICARD, INC., | : | Case No. 07-11517 (RDD) | |||||||
: | ||||||||||
Debtor | : | |||||||||
: | ||||||||||
: | ||||||||||
: |
MONTHLY CONSOLIDATED STATEMENT | ||||
FOR THE PERIOD ENDED | ||||
August 31, 2007 | ||||
MONTHLY RECEIPTS: | $ | 215 | ||
MONTHLY DISBURSEMENTS: | $ | 17,114 | ||
THIS OPERATING STATEMENT MUST BE SIGNED BY A REPRESENTATIVE OF THE DEBTOR
The undersigned, having reviewed the attached report and being familiar with the debtor's financial affairs, verifies under penalty of perjury, that the information contained therein is complete, accurate and truthful to the best of my knowledge.
DATE: 17-Sep-07 | By: | /s/ Marc B. Ross |
Title: Principal Financial Officer |
Indicate if this is an amended statement by checking here | o |
PubliCARD, Inc.
(Debtor-In-Possession)
Statement Of Operations
For the Period Ending August 31, 2007
Accrual Basis
Current | |||||||
Month | Case-To-Date | ||||||
August 31, 2007 | August 31, 2007 | ||||||
Revenue | $ | - | $ | - | |||
Operating Expenses | |||||||
Direct Cost Of Revenue | - | - | |||||
Selling, General and Administrative | 52,713 | 146,932 | |||||
Depreciation Of Fixed Assets | 96 | 384 | |||||
Total Operating Expenses | 52,809 | 147,316 | |||||
Operating Gain/(Loss) | (52,809 | ) | (147,316 | ) | |||
Other Expense/(Income) | |||||||
Interest Expense | - | - | |||||
Loss/(Gain) On The Sale Of Assets | - | - | |||||
Interest Income | (215 | ) | (624 | ) | |||
Income/(Loss) Before Reorganizational Items and Taxes | (52,594 | ) | (146,692 | ) | |||
US Trustee Fees - Q2 2007 | 500 | 750 | |||||
Reorganization Professional Fees (Estimated and | |||||||
Accrued) (1) | 4,240 | 18,240 | |||||
4,740 | 18,990 | ||||||
Gain/(Loss) Before Income Taxes | (57,334 | ) | (165,682 | ) | |||
Provision For Income Taxes | - | - | |||||
Net Income/(Loss) | (57,334 | ) | (165,682 | ) | |||
Deficit Beginning of Period | (113,721,678 | ) | (113,613,330 | ) | |||
Deficit End Of Period | $ | (113,779,012 | ) | $ | (113,779,012 | ) | |
- | - |
(1) Includes estimated and accrued fees for debtor professionals.
(Debtor-In-Possession) | |||||||
Balance Sheet | |||||||
As of August 31, 2007 |
August 31, 2007 | July 31, 2007 | May 17, 2007 | ||||||||
Balance Sheet | Balance Sheet | Balance Sheet | ||||||||
Current Assets | ||||||||||
Cash | $ | 58,156 | $ | 75,055 | $ | 39,723 | ||||
Restricted Cash | - | - | - | |||||||
Due From Related Parties | - | - | - | |||||||
Accounts Receivable-Net | (268 | ) | (268 | ) | 13,364 | |||||
Inventory Net | - | - | - | |||||||
Prepaid Rent | - | - | - | |||||||
Prepaid Insurance | 20,837 | 27,739 | 43,272 | |||||||
Prepaid Professional | - | - | - | |||||||
Prepaid Expenses | 19,200 | 19,200 | 19,200 | |||||||
Total Current Assets | 97,925 | 121,726 | 115,559 | |||||||
Property, Plant, & Equipment - Gross | 14,404 | 14,404 | 14,404 | |||||||
Accumulated Depreciation | (10,470 | ) | (10,374 | ) | (10,088 | ) | ||||
Property, Plant, & Equipment - Net | 3,934 | 4,030 | 4,316 | |||||||
Intangibles - Gross | - | - | - | |||||||
Accumulated Amortization | - | - | - | |||||||
Intangibles - Net | - | - | - | |||||||
Organizational Costs | - | - | - | |||||||
Other - Non-Current | - | - | - | |||||||
Total Assets | $ | 101,859 | $ | 125,756 | $ | 119,875 | ||||
Post-Petition Liabilities | ||||||||||
Cash Overdrafts | $ | - | $ | - | $ | - | ||||
Accounts Payable | 5,896 | 2,090 | - | |||||||
Deferred Subscription Revenues | - | - | - | |||||||
Accrued Payroll/Commission | 4,585 | 1,694 | - | |||||||
Accrued Consulting | 22,500 | - | - | |||||||
Due to Affiliates | 71,915 | 71,915 | - | |||||||
Other Current Liabilities/Accrued Professional Fees | 18,240 | 14,000 | - | |||||||
Total Post Petition Current Liabilities | 123,136 | 89,699 | - | |||||||
Pre-Petition Liabilities | ||||||||||
Cash Overdrafts | - | - | - | |||||||
Accounts Payable | 294,021 | 294,021 | 269,491 | |||||||
Deferred Revenues | - | - | - | |||||||
Accrued Payroll/Commission | - | - | - | |||||||
Obligations For Capital Leases Current | - | - | - | |||||||
Other Current Liabilities | 19,800 | 19,800 | 19,800 | |||||||
Total Pre- Petition Current Liabilities | 313,821 | 313,821 | 289,291 | |||||||
Interest Payable | - | - | - | |||||||
Other Long Term Liabilities | - | - | - | |||||||
- | - | - | ||||||||
Total Liabilities | 436,957 | 403,520 | 289,291 | |||||||
Stockholders’ Deficit | ||||||||||
Class A Preferred Stock Second Series, no par value:1,000 shares authorized | ||||||||||
465 shares issued and outstanding | 2,325,000 | 2,325,000 | 2,325,000 | |||||||
Common shares, $0.10 par value: 40,000,000 shares authorized; 24,940,902 | ||||||||||
shares outstanding | 2,494,090 | 2,494,090 | 2,494,090 | |||||||
Additional paid-in capital | 108,624,824 | 108,624,824 | 108,624,824 | |||||||
Accumulated deficit | (113,779,012 | ) | (113,721,678 | ) | (113,613,330 | ) | ||||
Total Stockholders’ Deficit | (335,098 | ) | (277,764 | ) | (169,416 | ) | ||||
Total Liabilities and Stockholder Equity | $ | 101,859 | $ | 125,756 | $ | 119,875 |
PubliCARD, Inc. | |||||
(Debtor-In-Possession) | |||||
Statement Of Cash Flow | |||||
For the Period Ending August 31, 2007 |
Current | |||||||
Month | Case-To-Date | ||||||
August 31, 2007 | August 31, 2007 | ||||||
Net Income/(Loss) | $ | (57,334 | ) | $ | (165,682 | ) | |
(Less)/Add: Depreciation | 96 | 384 | |||||
(Less)/Add: Amortization | |||||||
(Increase)/Decrease In Net Assets | |||||||
Net Accounts Receivable | - | 13,632 | |||||
Net Inventory | - | - | |||||
Prepaid Rent | |||||||
Prepaid & Other Expenses | 6,902 | 22,433 | |||||
Increase/(Decrease) In Liabilities | |||||||
Bank Overdrafts | - | - | |||||
Accounts Payable | 3,806 | 30,426 | |||||
Deferred Revenues | - | - | |||||
Accrue Payroll/Commission | 2,891 | 4,585 | |||||
Accrued Consulting | 22,500 | 22,500 | |||||
Other Current Liabilities | 4,240 | 18,240 | |||||
Collection of insurance proceeds Due to Inactive Affiliates | - | 71,915 | |||||
Cash Provided by/(used in) operations | (16,899 | ) | 18,433 | ||||
Capital Expenditures | - | - | |||||
Cash provided by/(used in) investing activities | - | - | |||||
Proceeds/(Repayments of) Debt | - | - | |||||
Proceeds received on behalf of Affiliates | |||||||
Cash provided by (used in) financing activities | - | - | |||||
Change in cash | (16,899 | ) | 18,433 | ||||
Cash Balance at the Beginning Of Period | 75,055 | 39,723 | |||||
Cash Balance at the End of the Period | $ | 58,156 | $ | 58,156 |
PubliCARD, Inc. | |||
(Debtor-In-Possession) | |||
Statement Of Receipts And Disbursements | |||
For the Period Ending August 31, 2007 |
Month Ended | ||||
August 31, 2007 | ||||
Disbursements | ||||
Checks Cut From Operating Account | $ | 9,602 | ||
Wires From Operating Account | - | |||
Payments To Professionals | - | |||
Voided Checks | - | |||
Benefits | - | |||
Payroll and Associated Taxes | 7,500 | |||
Bank and Payroll fees | 12 | |||
Taxes | - | |||
Wires From Depository Account | - | |||
Disbursements From Depository Account | - | |||
Principal Repaments | - | |||
Total Disbursements | $ | 17,114 | ||
Receipts | ||||
Interest Income | $ | 215 | ||
A/R Receipts | - | |||
Insurance Settlements | - | |||
Total Receipts | $ | 215 | ||
Net Inflow/(Outflow) | $ | (16,899 | ) |
PubliCARD, Inc. | |||
(Debtor-In-Possession) | |||
Disbursement List | |||
For the Period Ending August 31, 2007 |
Month Ended | ||||
Disbursements | August 31, 2007 | |||
Triax | 3,568 | |||
Iron Mountain | 3,135 | |||
Sarachek | 7,500 | |||
Sarachek Expenses | 1,309 | |||
Extra Space and Storage Co. | 665 | |||
U.S. Department of Justice | 250 | |||
Continental Stock Transfer | 604 | |||
Federal Express | 71 | |||
Bank Fees | 12 | |||
Total | $ | 17,114 |
Bank Reconciliation | ||||||||||
Bank | Book | |||||||||
Account | Balance | Balance | Variance | |||||||
2030000846371 | $ | 58,156 | $ | 58,156 | $ | - |
Checks Outstanding | |||||||
Number | Payee | Amount | |||||
Total | $ | - | |||||
Deposits In Transit | |||||||
Net Adjustments | $ | - |
(Debtor-In-Possession) | ||||||||
Variance To Budget | ||||||||
For the Period Ending August 31, 2007 | ||||||||
Accrual Basis |
Actual | Projected | Variance | ||||||||
August 31, 2007 | August 31, 2007 | August 31, 2007 | ||||||||
Revenue | $ | - | $ | - | $ | - | ||||
Operating Expenses | ||||||||||
Wages, Consulting Fees and Payroll Taxes | 34,585 | 12,258 | (22,327 | )(1) | ||||||
Rent | 3,568 | 3,750 | 182 | |||||||
Insurance Expense | 7,965 | 7,965 | - | |||||||
Office Expenses | 3,147 | 4,000 | 853 | |||||||
Pre-petition claims | - | - | - | |||||||
Other Expenses | 3,448 | 4,000 | 552 | |||||||
Depreciation Of Fixed Assets | 96 | 96 | (0 | ) | ||||||
Total Operating Expenses | 52,809 | 32,069 | (20,740 | ) | ||||||
Operating Gain/(Loss) | (52,809 | ) | (32,069 | ) | 20,740 | |||||
Other Expense/(Income) | ||||||||||
Interest Expense | - | - | - | |||||||
Loss/(Gain) On The Sale Of Assets | - | - | - | |||||||
Claim Settlement | - | - | - | |||||||
Insurance Settlements | - | - | - | |||||||
Interest Income | (215 | ) | - | 215 | ||||||
Gain/(Loss) Before Reorganizational Items and Taxes | (52,594 | ) | (32,069 | ) | 20,525 | |||||
Reorganization Professional Fees (Estimated and Accrued) | 4,240 | 6,000 | 1,760 | |||||||
U.S. Trustee Fees | 500 | - | - | |||||||
Gain/(Loss) Before Income Taxes | (57,334 | ) | (38,069 | ) | (19,265 | ) | ||||
Provision For Income Taxes | - | - | - | |||||||
Net Income/(Loss) | $ | (57,334 | ) | $ | (38,069 | ) | $ | (19,265 | ) |
(1) Variance relates primarily to the accrual of deferred consulting fees for Mr. Sarachek, ($22,500, in accordance with his consulting agreement with the Debtor) from June 2007 through August 2007. Mr. Sarachek's monthly consulting fee was $15,000 prior to the Debtor's Chapter 11 filing. He has agreed to defer payment of $7,500 per month, as an administrative expense, until the Debtor emerges from Chapter 11 protection. |
PubliCARD, Inc. | |||
(Debtor-In-Possession) | |||
Budget | |||
For the Period Ending August 31, 2007 | |||
Accrual Basis |
Projected | ||||
September 30, 2007 | ||||
Revenue | $ | - | ||
Operating Expenses | ||||
Wages and Payroll Taxes | 19,600 | |||
Rent | 4,000 | |||
Insurance Expense | 7,600 | |||
Office Expenses | 4,000 | |||
Other Expenses | 4,000 | |||
Depreciation Of Fixed Assets | 96 | |||
Total Operating Expenses | 39,296 | |||
Operating Gain/(Loss) | (39,296 | ) | ||
Other Expense/(Income) | ||||
Interest Expense | - | |||
Loss/(Gain) On The Sale Of Assets | - | |||
Claim Settlement | - | |||
Insurance Settlements | - | |||
Interest Income | - | |||
Income/(Loss) Before Reorganizational Items and Taxes | (39,296 | ) | ||
Reorganization Professional Fees (Estimated) | 6,000 | |||
Income/(Loss) Before Income Taxes | (45,296 | ) | ||
Provision For Income Taxes | - | |||
Net Income/(Loss) | $ | (45,296 | ) |
PubliCARD, Inc. |
(Debtor-In-Possession) |
Debtor Questionnaire |
For Period Ending August 31, 2007 |
Yes | No | |||
1. Have any assets been sold or transferred outside the normal course of business during this reporting period? If yes, provide an explanation below. | X | |||
2. Have any funds been disbursed from any account other than a debtor-in-possession account this reporting period? If yes, provide an explanation below. | X | |||
3. Have all post-petition tax returns been timely filed? If no, provide an explanation below. | X | |||
4. Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below. | X |