EX-99.1 2 a2055044zex-99_1.htm EXHIBIT 99.1 Prepared by MERRILL CORPORATION
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EXHIBIT 99.1


UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
OFFICE OF THE US TRUSTEE—REGION 3

In re: eToys, Inc.

Case No. 01-0706 (MFW)
Reporting Period: 06/01/01-06/30/01

MONTHLY OPERATING REPORT
File with Court and submit copy to United States Trustee within 20 days after end of month

    Submit copy of report to any official committee appointed in the case

Required Documents
  Form No.
  Document Attached
  Explanation Attached
Schedule of Cash Receipts and Disbursements   MOR-1   X    
  Bank Reconciliation (or copies of debtor's bank reconciliations)   MOR-1 (CON'T)   X    
  Copies of bank statements       X    
  Cash disbursements journals       X    
Statement of Operations   MOR-2   X    
Balance Sheet   MOR-3   X    
Status of Postpetition Taxes   MOR-4   X    
  Copies of IRS Form 6123 or payment receipt           X
  Copies of tax returns filed during reporting period           X
Summary of Unpaid Postpetition Debts   MOR-4   X    
  Listing of aged accounts payable       X    
Accounts Receivable Reconciliation and Aging   MOR-5   X    
Debtor Questionnaire   MOR-5   X    

    I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.



Signature of Debtor

 


Date


Signature of Joint Debtor

 


Date

/s/ 
BARRY GOLD   
Signature of Authorized Individual

 

7/20/01

Date

/s/ 
BARRY GOLD   
Printed Name of Authorized Individual

 

CEO

Title of Authorized Individual

*  Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.


In re: eToys, Inc.

Case No. 01-0706 (MFW)

Attachment to Monthly Operating Report (MOR cover page):

      All payroll taxes are impounded by the independent payroll service therefore payment receipt is not applicable.

      There was no tax return filed during the period. Payroll and sales tax returns are prepared on a quarterly basis and submitted to respective government agency within thirty days after the end of each quarter.


In re: eToys, Inc.

Case No. 01-00706 MFW
Reporting Period 06/01/01-06/30/01

MOR-1
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

    Amounts reported should be per the debtor's books, not the bank statement. The beginning cash should be the ending cash from the prior month or, if this is the first report, the amount should be the balance on the date the petition was filed. The amounts reported in the "CURRENT MONTH—ACTUAL" columns must equal the sum of the bank account columns. The amount reported in the "PROJECTED" columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM-IR-1). Attach copies of the bank statements and the cash disbursements journal. The total disbursements listed in the disbursements journal must equal the total disbursements reported on this page. A bank reconciliation must be attached for cash account.

 
  Pre-petition
5300152165

  DIP General
2180039271

  Payroll
5300155243

  UBOC CD
2189008838

  UBOC STOCK
5300161903

  UBOC ESPP
5300161911

  UBOC CD
2189005826

  UBOC CD
2189009224

  UBOC CD
2189000603

  UBOC CD
2189015247

  WFB
Cert. Of Dep.

  UBOC CD
2189003821

CASH BEGINNING OF MONTH     472,553.06   85,569.50   15,073,501.66       2,501,871.53   2,000,000.00     5,800,000.00   100,000.00   3,500,000.00
CASH SALES                                                
ACCOUNTS RECEIVABLE                                                
LOANS AND ADVANCES                                                
SALE OF ASSETS       68,511.00                                        
DUE FROM LLC                                                
OTHER (attach list)       4,026.41                                        
TRANSFER FROM DISTRIBUTION LLC                                                
TRANSFER FROM CD       4,853,368.75                                        
TRANSFERS FROM PRE-PETITION                                                
TRANSFERS FROM DIP           320,000.00               3,500,000.00                    
INTEREST       1,407.31           0.00       1,497.22   6,416.67               0.00
TOTAL RECEIPTS     4,927,313.47   320,000.00         3,501,497.22   6,416.67        
DISBURSEMENTS                                                
NET PAYROLL           (230,506.21 )                                  
PAYROLL TAXES           (129,720.50 )                                  
SALES,USE,& OTHER TAXES       (3,367.00 )                                      
INVENTORY PURCHASES                                                
SECURED/RENT/LEASES       (128,079.10 )                                      
INSURANCE       (253,082.90 )                                      
ADMINISTRATIVE       (98,038.77 ) (1,514.08 )                                  
SELLING                                                
OTHER (attach list)                                                
PRE-PETITION EXPENSES *       (12,905.93 )                                      
OWNER DRAW                                                
TRANSFERS                                                
Transfer to LLC DIP       (700,000.00 )                 (150,000.00 )                 0.00
Transfer to PR       (320,000.00 )                                      
Transfer to CD       (3,500,000.00 )                 (1,000,000.00 ) (2,006,416.67 )              
Transfer to DIP General                           (4,853,368.75 )                  
Transfer to Pre-petition                                                
PROFESSIONAL FEES       (274,427.40 )                                      
U.S. TRUSTEE QUARTERLY FEES                                                
COURT COSTS                                                
TOTAL DISBURSEMENTS   0.00   (5,289,901.10 ) (361,740.79 ) 0.00   0.00   0.00   (6,003,368.75 ) (2,006,416.67 ) 0.00   0.00   0.00   0.00
NET CASH FLOW   0.00   (362,587.63 ) (41,740.79 ) 0.00   0.00   0.00   (2,501,871.53 ) (2,000,000.00 ) 0.00   0.00   0.00   0.00
CASH END OF MONTH   0.00   109,965.43   43,828.71   15,073,501.66   0.00   0.00   0.00   0.00   0.00   5,800,000.00   100,000.00   3,500,000.00

*  PAYMENTS MADE TO CRITICAL VENDORS AND EMPLOYEE REIMBURSEMENTS PURSUANT TO FIRST DAY ORDER

    THE FOLLOWING SECTION MUST BE COMPLETED

TOTAL DISBURSEMENTS
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES

Page 1 of 2


 
   
In re: eToys, Inc.   Case No. 01-00706 MFW
Reporting Period 06/01/01-06/30/01


MOR-1 con't
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

 
  UBOC CD
2869002614

  UBOC CD
2869002770

  UBOC CD
2869002754

  UBOC CD
5309026234

  UBOC CD
5309028479

  WFB
060-8526315

  Total
 
CASH BEGINNING OF MONTH   288,000.00   0.00   0.00   187,500.00   317,611.46   103,043.71   30,429,650.92  

CASH SALES

 

 

 

 

 

 

 

 

 

 

 

 

 

0.00

 
ACCOUNTS RECEIVABLE                           0.00  
LOANS AND ADVANCES                           0.00  
SALE OF ASSETS                           68,511.00  
DUE FROM LLC                           0.00  
OTHER (attach list)                           4,026.41  
TRANSFERS—SWEEP ACCOUNT                           0.00  
TRANSFER FROM CD       2,006,416.67   1,000,000.00               7,859,785.42  
TRANSFERS FROM PRE-PETITION                           0.00  
TRANSFERS FROM DIP                           3,820,000.00  
INTEREST           947.92       940.95   370.12   11,580.19  
TOTAL RECEIPTS   0.00   2,006,416.67   1,000,947.92   0.00   940.95   370.12   11,763,903.02  

DISBURSEMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
NET PAYROLL                           (230,506.21 )
PAYROLL TAXES                           (129,720.50 )
SALES,USE,& OTHER TAXES                           (3,367.00 )
INVENTORY PURCHASES                           0.00  
SECURED/RENT/LEASES                           (128,079.10 )
INSURANCE                           (253,082.90 )
ADMINISTRATIVE                       (10.00 ) (99,562.85 )
SELLING                           0.00  
OTHER (attach list)                           0.00  
PRE-PETITION EXPENSES*                           (12,905.93 )
OWNER DRAW                           0.00  
TRANSFERS                           0.00  
  Transfer to DIP                           (850,000.00 )
  Transfer to PR                           (320,000.00 )
  Transfer to CD                           (6,506,416.67 )
  Due to LLC                           (4,853,368.75 )
  Transfer to Pre-petition                           0.00  
PROFESSIONAL FEES                           (274,427.40 )
U.S. TRUSTEE QUARTERLY FEES                           0.00  
COURT COSTS                           0.00  
TOTAL DISBURSEMENTS   0.00   0.00   0.00   0.00   0.00   (10.00 ) (13,661,437.31 )
NET CASH FLOW   0.00   2,006,416.67   1,000,947.92   0.00   940.95   360.12   (1,897,534.29 )
CASH END OF MONTH   288,000.00   2,006,416.67   1,000,947.92   187,500.00   318,552.41   103,403.83   28,532,116.63  

*PAYMENTS MADE TO CRITICAL VENDORS AND EMPLOYEE REIMBURSEMENTS PURSUANT TO FIRST DAY ORDER

THE FOLLOWING SECTION MUST BE COMPLETED

TOTAL DISBURSEMENTS   $ 13,661,437.31  
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS   $ (12,529,785.42 )
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES   $    
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES   $ 1,131,651.89  

Page 2 of 2


In re: eToys, Inc.   Case No. 01-0706 (MFW)
Reporting Period: 06/01/01-06/30/01

MOR-1 Cont'd
BANK RECONCILIATIONS

The debtor in possession must complete the reconciliation below for each bank account including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary.

A.   Bank:   Union Bank
  Union Bank
  Union Bank
  Union Bank
  Union Bank
B.   Account No.:   2180039271   5300155253   5300161903   5300161911   2189008838
C.   Purpose (Type):   DIP General   Payroll   Stock   E S P P   Time Deposit
1.   Balance per Bank Statement       $ 334,791.58       $ 121,994.86       $       $       $ 15,073,501.66
2.   (+) Deposit in Transit                                                  
3.   (-) Outstanding Checks         (224,826.15 )       (78,166.15 )                            
4.   Other                                                
5.   Month End Balance per Books       $ 109,965.43       $ 43,828.71       $       $       $ 15,073,501.66
6.   Number of Last Check Written         20235         605412                              
                                                       
DEPOSITS IN TRANSIT   Date
  Amount
  Date
  Amount
  Date
  Amount
  Date
  Amount
  Date
  Amount
        none   none   none   none   not applicable
                                                       
CHECKS OUTSTANDING   Ck#
  Amount
  Ck#
  Amount
  Ck#
  Amount
  Ck#
  Amount
  Ck#
  Amount
        1475     769.20   SEE ATTACHED
LIST
  none   none   not applicable
        1485     12.00                                        
        1486     228.83                                        
        1488     46.15                                        
        1489     47.82                                        
        1490     284.60                                        
        1491     48.08                                        
        1492     1.44                                        
        1493     46.15                                        
        1494     78.00                                        
        1495     15.00                                        
        1497     35.00                                        
        1498     2.50                                        
        1499     253.85                                        
        1500     202.20                                        
        1501     301.00                                        
        1503     75.00                                        
        1504     69.23                                        
        10084     5,000.00                                        
        20210     996.09                                        
        20212     462.50                                        
        20215     13,226.00                                        
        20218     618.47                                        
        20219     1,165.53                                        
        20220     32,778.65                                        
        20221     1,473.13                                        
        20225     1,200.00                                        
        20227     23,763.40                                        
        20228     447.99                                        
        20229     1,015.57                                        
        20230     74,108.13                                        
        20231     200.00                                        
        20232     25,000.00                                        
        20234     2,065.32                                        
        20235     3,730.00                                        
        200096     49.50                                        
        200116     305.17                                        
        300005     14.99                                        
        300011     7.48                                        
        300046     80.47                                        
        300054     104.34                                        
        300059     3,793.11                                        
        300069     447.84                                        
        300070     30,256.42                                        
    Total Checks Outstanding       $ 224,826.15                                        

1


In re: eToys, Inc.   Case No. 01-0706 (MFW)
Reporting Period: 06/01/01-06/30/01

MOR-1 Cont'd
BANK RECONCILIATIONS

The debtor in possession must complete the reconciliation below for each bank account including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary.

A.   Bank:   Union Bank
  Union Bank
  Union Bank
  Union Bank
  Union Bank
B.   Account No.:   2189005826   2189009224   5309026234   2189015247   2189003821
C.   Purpose (Type):   Time Deposit   Time Deposit   Time Deposit   Time Deposit   Time Deposit
1.   Balance per Bank Statement       $       $       $ 187,500.00       $ 5,800,000.00       $ 3,500,000.00
2.   (+) Deposit in Transit                                                  
3.   (-) Outstanding Checks                                                  
4.   Other Reconciling Items                                                  
5.   Month End Balance per Books       $       $       $ 187,500.00       $ 5,800,000.00       $ 3,500,000.00
6.   Number of Last Check Written                                                  
                                                       
DEPOSITS IN TRANSIT   Date
  Amount
  Date
  Amount
  Date
  Amount
  Date
  Amount
  Date
  Amount
        not applicable   not applicable   not applicable   not applicable   not applicable
                                                       
CHECKS OUTSTANDING   Ck#
  Amount
  Ck#
  Amount
  Ck#
  Amount
  Ck#
  Amount
  Ck#
  Amount
        not applicable   not applicable   not applicable   not applicable   not applicable

2


In re: eToys, Inc.   Case No. 01-0706 (MFW)
Reporting Period: 06/01/01-06/30/01

MOR-1 Cont'd
BANK RECONCILIATIONS

The debtor in possession must complete the reconciliation below for each bank account including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary.

A.   Bank:   Wells Fargo
  Wells Fargo
  Union Bank
  Union Bank
  Union Bank
B.   Account No.:   ****   060-8526315   2869002614   5309028479   2869002754
C.   Purpose (Type):   Cert of Deposit   Credit Card   Time Deposit   Time Deposit   Time Deposit
1.   Balance per Bank Statement       $ 100,000.00       $ 103,403.83       $ 288,000.00       $ 318,552.41       $ 1,000,947.92
2.   (+) Deposit in Transit                                                  
3.   (-) Outstanding Checks                                                  
4.   Other Reconciling Items                                                  
5.   Month End Balance per Books       $ 100,000.00       $ 103,403.83       $ 288,000.00       $ 318,552.41       $ 1,000,947.92
6.   Number of Last Check Written                                                  
        **** copy of renewal notice was not available during the preparation of this report
                                                       
    DEPOSITS IN TRANSIT   Date
  Amount
  Date
  Amount
  Date
  Amount
  Date
  Amount
  Date
  Amount
        not applicable   not applicable   not applicable   not applicable   not applicable
                                                       
    CHECKS OUTSTANDING   Ck#
  Amount
  Ck#
  Amount
  Ck#
  Amount
  Ck#
  Amount
  Ck#
  Amount
        not applicable   not applicable   not applicable   not applicable   not applicable
                                                       

3


In re: eToys, Inc.   Case No. 01-0706 (MFW)
Reporting Period: 06/01/01-06/30/01

MOR-1 Cont'd
BANK RECONCILIATIONS

The debtor in possession must complete the reconciliation below for each bank account including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary.

A.   Bank:   Union Bank
                                Total
 
B.   Account No.:     2869002770                                          
C.   Purpose (Type):     Time Deposit                                          
1.   Balance per Bank Statement   $ 2,006,416.67                                 $ 28,835,108.93  
2.   (+) Deposit in Transit                                                 0.00  
3.   (-) Outstanding Checks                                                 (302,992.30 )
4.   Other Reconciling Items                                                 0.00  
5.   Month End Balance per Books   $ 2,006,416.67       $       $       $   $ 28,532,116.63  
6.   Number of Last Check Written                                                    
                                                         
    DEPOSITS IN TRANSIT   Date
  Amount
  Date
  Amount
  Date
  Amount
  Date
  Amount
           
          not applicable   not applicable   not applicable   not applicable            
                                                         
    CHECKS OUTSTANDING   Ck#
  Amount
  Ck#
  Amount
  Ck#
  Amount
  Ck#
  Amount
           
          not applicable   not applicable   not applicable   not applicable            
                                                         

4


In re: eToys, Inc.

Case No. 01-0706 (MFW)


MOR-1 ATTACHMENT
OTHER RECEIPTS
June 2001

Payer

  Description
  Amount
  Date
Verizon   Refund     39.85   6/11/2001
Pacific Bell   Refund     342.51   6/11/2001
Pacific Bell   Refund     92.86   6/11/2001
Pacific Bell   Refund     93.01   6/11/2001
Duke Power   Refund     323.39   6/11/2001
Ziff Davis Publishing   Refund     2.00   6/11/2001
California Chamber of Commerce   Refund     44.61   6/11/2001
Verizon   Refund     4.23   6/29/2001
ProBusiness   Refund     543.51   6/29/2001
Piedmont Natural Gas Co.   Refund     648.88   6/29/2001
Piedmont Natural Gas Co.   Refund     1,519.90   6/29/2001
Verizon   Refund     238.27   6/29/2001
Chatham   Refund     133.39   6/29/2001
       
   
  Total       $ 4,026.41    
       
   

In re: eToys, Inc.

Case No. 01-0706 (MFW)


Cash Disbursements
June 2001

Date
  Num
  Name
  Account
  Amount
6/4/2001   20168   VOIDED CHECK   VOIDED CHECK  
6/4/2001   20169   VOIDED CHECK   VOIDED CHECK  
6/4/2001   20175   VOIDED CHECK   VOIDED CHECK  
6/4/2001   20176   VOIDED CHECK   VOIDED CHECK  
6/4/2001   20177   VOIDED CHECK   VOIDED CHECK  
6/4/2001   20178   VOIDED CHECK   VOIDED CHECK  
6/5/2001   20179   FEDERAL EXPRESS   Postage and Delivery   90.42
6/5/2001   20180   VOIDED CHECK   VOIDED CHECK  
6/5/2001   20181   MCI WORLDCOM WIRELESS (PA)   Telephone   1,306.14
6/5/2001   20182   VERIZON CALIFORNIA   Telephone   3,218.45
6/5/2001   20183   RICHARD CARTOON, LLC   Professional Fees   13,591.60
6/6/2001   20184   KILROY REALTY, L.P.   Rent   39,670.97
6/7/2001   20185   VERIZON CALIFORNIA   Telephone   807.21
6/7/2001   20186   GOLD, BARRY   Travel & Entertainment   5,326.66
6/7/2001   20187   HUNTINGTON LEGAL ADVERTISING   Consulting   28,345.96
6/7/2001   20188   RANDSTAD   Outside Services   664.00
6/8/2001   20189   SPRINT (PO BOX 79255)   Telephone   112.68
6/8/2001   20190   SPRINT (PO BOX 79255)   Telephone   6,406.45
6/8/2001   20191   SPRINT (PO BOX 79255)   Telephone   3,099.40
6/8/2001   20192   SPRINT (PO BOX 79255)   Telephone   4,252.24
6/8/2001   20193   HARTFORD LIFE INSURANCE COMPANIES   Employee Benefits   7,515.08
6/8/2001   1485   BRAD ANGLE   332000P—Employee Comp Liab   12.00
6/8/2001   1486   FRAM, STEVEN   332000P—Employee Comp Liab   228.83
6/8/2001   1487   LEAH HENNEN   332000P—Employee Comp Liab   46.15
6/8/2001   1488   LARA HOYEM   332000P—Employee Comp Liab   46.15
6/8/2001   1489   Rhonda M Lopez   332000P—Employee Comp Liab   47.82
6/8/2001   1490   MARTINEZ, ROSA A.   332000P—Employee Comp Liab   284.60
6/8/2001   1491   TONIA K MCRARY   332000P—Employee Comp Liab   48.08
6/8/2001   1492   NORMA L. OBADI   332000P—Employee Comp Liab   1.44
6/8/2001   1493   MOLLEE BLOOM OLENICK   332000P—Employee Comp Liab   46.15
6/8/2001   1494   DANNY PHAM   332000P—Employee Comp Liab   78.00
6/8/2001   1495   JOSEPH H. SMITH   332000P—Employee Comp Liab   15.00
6/8/2001   1496   ANSEL TENG   332000P—Employee Comp Liab   438.45
6/8/2001   1497   CLEMENTE TENG   332000P—Employee Comp Liab   35.00
6/8/2001   1498   NAOMI J. WILLIAMS   332000P—Employee Comp Liab   2.50
6/8/2001   1499   MARGARET WOLTER   332000P—Employee Comp Liab   253.85
6/8/2001   1500   DANA DUBINSKY   332000P—Employee Comp Liab   202.20
6/8/2001   1501   JAMES SCOTT   332000P—Employee Comp Liab   301.00
6/8/2001   1502   ANSEL TENG   332000P—Employee Comp Liab   2,990.00
6/8/2001   1503   CLEMENTE TENG   332000P—Employee Comp Liab   75.00

1


6/8/2001   1504   TONIA K MCRARY   332000P—Employee Comp Liab   69.23
6/8/2001   1505   MARGARET WOLTER   332000P—Employee Comp Liab   769.20
6/8/2001   1475   MARGARET WOLTER   332000P—Employee Comp Liab   769.20
6/8/2001   1483   BRAD ANGLE   332000P—Employee Comp Liab   159.00
6/8/2001   1484   Rhonda M Lopez   332000P—Employee Comp Liab   147.68
6/10/2001   20206   JOHN BURNHAM AND COMPANY   Insurance   4,913.72
6/11/2001   20194   PETTY CASH   Office   500.00
6/11/2001   20195   COLLATERAL LOGISTICS, INC   Professional Fees   100,000.00
6/11/2001   BC 6-1       Bank Service Charges   30.15
6/12/2001   BC 6-2       Bank Service Charges   60.00
6/13/2001   20196   DONAGAN, KELLY   Travel & Entertainment   3,170.00
6/14/2001   20197   NEW YORK STATE CORPORATION TAX   Taxes   1,500.00
6/14/2001   20198   NYC DEPARTMENT OF FINANCE   Taxes   300.00
6/14/2001   20199   NEW YORK STATE CORPORATION TAX   Taxes   10.00
6/14/2001   20200   COMMISSIONER OF REVENUE SERVICES   Taxes   21.00
6/14/2001   20201   NEW YORK STATE CORPORATION TAX   Taxes   1,426.00
6/14/2001   20202   NYC DEPARTMENT OF FINANCE   Taxes   100.00
6/14/2001   20203   NEW YORK STATE CORPORATION TAX   Taxes   10.00
6/14/2001   20204   GOLD, BARRY   Travel & Entertainment   1,726.78
6/15/2001   20205   FRENKEL OF CALIFORNIA INSURANCE SERVICES   Insurance   173,823.00
6/15/2001   1506   ANSEL TENG   332000P—Employee Comp Liab   839.60
6/20/2001   20207   KILROY REALTY, L.P.   Rent   14,300.00
6/20/2001   20208   FIRST CHOICE SERVICES   Office   305.17
6/20/2001   20209   FIRST CHOICE SERVICES   Office   130.68
6/21/2001   20210   GOLD, BARRY   Travel & Entertainment   996.09
6/21/2001   20211   FEDERAL EXPRESS   Postage and Delivery   228.66
6/22/2001   20212   ANTHONY, DAVINA   Travel & Entertainment   462.50
6/25/2001   20213   CROSSROADS, LLC   Professional Fees   62,414.21
6/25/2001   20214   IRELL & MANELLA   Professional Fees   85,195.59
6/25/2001   20215   RICHARD CARTOON, LLC   Professional Fees   13,226.00
6/25/2001   20216   PANJABI, SATISH   Outside Services   2,774.00
6/25/2001   20217   VOIDED CHECK   VOIDED CHECK  
6/25/2001   20218   VISION SERVICE PLAN   Employee Benefits   618.47
6/25/2001   20219   PMI   Employee Benefits   1,165.53
6/25/2001   20220   BLUE CROSS OF CALIFORNIA   Employee Benefits   32,778.65
6/25/2001   20221   CIGNA BEHAVIORAL HEALTH   Employee Benefits   1,473.13
6/26/2001   20222   PACIFIC BELL (SAC)   Telephone   35.67
6/26/2001   20223   VOIDED CHECK   VOIDED CHECK  

2


6/26/2001   20224   DONAGAN, KELLY   Travel & Entertainment   7,302.50
6/26/2001   20225   MARCHIONE, MATT   Outside Services   1,200.00
6/28/2001   20226   VOIDED CHECK   VOIDED CHECK  
6/28/2001   20227   DELTA DENTAL PLAN OF CALIFORNIA   Employee Benefits   23,763.40
6/29/2001   20228   ARTER-RODRIGUEZ, DENISE   Travel & Entertainment   447.99
6/29/2001   20229   GOLD, BARRY   Travel & Entertainment   1,015.57
6/29/2001   20230   KILROY REALTY, L.P.   Rent   74,108.13
6/29/2001   20231   SCHWARZ, STEPHEN   Travel & Entertainment   200.00
6/29/2001   20232   MARSH & MCLENNAN COMPANIES   Insurance   25,000.00
6/29/2001   20233   VOIDED CHECK   VOIDED CHECK  
6/29/2001   20234   STATE WORKERS' INSURANCE FUND   Insurance   2,065.32
6/29/2001   20235   NCCI, INC — VIRGINIA   Insurance   3,730.00
6/30/2001   1453   DANA DUBINSKY   332000P—Employee Comp Liab   4,999.80
               
        Subtotal       769,841.10
               

 

 

 

 

ADD: Payroll Disbursements (see attached)

 

361,740.79
               

 

 

 

 

Total Disbursements

 

1,131,581.89
               

3


In re: eToys, Inc.

Case No. 01-0706 (MFW)

CASH DISBURSEMENTS
PAYROLL ACCOUNT
JUNE 2001

CHECKNUM

  CHECK DATE
  NET
AMOUNT

  NET
CHECKS

  PAYROLL
TAXES

  FEES
40616   6/1/2001   1,049.09   1,049.09        
40617   6/1/2001   2,876.32   2,876.32        
204075   6/1/2001   139.66   139.66        
306301   6/1/2001   7,688.60   7,688.60        
306302   6/1/2001   5,307.57   5,307.57        
306303   6/1/2001   832.90   832.90        
306304   6/1/2001   1,132.62   1,132.62        
306305   6/1/2001   461.81   461.81        
306306   6/1/2001   677.14   677.14        
306307   6/1/2001   524.29   524.29        
306308   6/1/2001   573.83   573.83        
306309   6/1/2001   1,823.15   1,823.15        
306310   6/1/2001   3,042.46   3,042.46        
306311   6/1/2001   2,264.43   2,264.43        
306312   6/1/2001   449.17   449.17        
TAX   6/1/2001   12,008.95       12,008.95    
PAYROLL FEES   6/4/2001   148.35           148.35
40618   6/6/2001   1,049.09   1,049.09        
306313   6/8/2001   985.50   985.50        
306314   6/8/2001   832.92   832.92        
306315   6/8/2001   1,148.83   1,148.83        
306316   6/8/2001   456.51   456.51        
306317   6/8/2001   808.37   808.37        
306318   6/8/2001   524.28   524.28        
306319   6/8/2001   573.84   573.84        
306320   6/8/2001   1,823.16   1,823.16        
306321   6/8/2001   3,042.46   3,042.46        
306322   6/8/2001   613.22   613.22        
Tax   6/8/2001   6,837.31       6,837.31    
Payroll Fees   6/11/2001   156.93           156.93
305520   6/11/2001   11.00   11.00        
305602   6/12/2001   132.32   132.32        
40619   6/15/2001   436.24   436.24        
306323   6/15/2001   2,089.26   2,089.26        
306324   6/15/2001   832.91   832.91        
306325   6/15/2001   1,148.83   1,148.83        
306326   6/15/2001   453.87   453.87        
306327   6/15/2001   808.36   808.36        
306328   6/15/2001   524.29   524.29        
306329   6/15/2001   573.83   573.83        
306330   6/15/2001   1,823.15   1,823.15        
306331   6/15/2001   3,042.46   3,042.46        
306332   6/15/2001   449.15   449.15        

Page 1 of 6


Tax   6/15/2001   4,896.46       4,896.46    
Payroll Fees   6/18/2001   139.88           139.88
306333   6/22/2001   3,540.42   3,540.42        
306334   6/22/2001   832.92   832.92        
306335   6/22/2001   1,148.83   1,148.83        
306336   6/22/2001   461.81   461.81        
306337   6/22/2001   808.36   808.36        
306338   6/22/2001   524.28   524.28        
306339   6/22/2001   573.84   573.84        
306340   6/22/2001   1,823.15   1,823.15        
306341   6/22/2001   3,042.46   3,042.46        
306342   6/22/2001   772.55   772.55        
Tax   6/22/2001   5,538.09       5,538.09    
Payroll Fees   6/25/2001   461.54           461.54
306343   6/29/2001   2,683.62   2,683.62        
306344   6/29/2001   832.92   832.92        
306345   6/29/2001   1,148.82   1,148.82        
306346   6/29/2001   459.14   459.14        
306347   6/29/2001   808.36   808.36        
306348   6/29/2001   524.29   524.29        
306349   6/29/2001   573.83   573.83        
306350   6/29/2001   925.30   925.30        
Tax   6/29/2001   3,497.24       3,497.24    
TOTAL DISBURSEMENTS-eToys, Inc.  
108,196.54
           
       
           

Tax

 

6/1/2001

 

14,644.77

 

 

 

14,644.77

 

 
605213   6/1/2001   442.48   442.48        
605214   6/1/2001   927.84   927.84        
605215   6/1/2001   504.03   504.03        
605216   6/1/2001   636.07   636.07        
605217   6/1/2001   439.93   439.93        
605218   6/1/2001   477.50   477.50        
605219   6/1/2001   382.67   382.67        
605220   6/1/2001   507.89   507.89        
605221   6/1/2001   619.58   619.58        
605222   6/1/2001   512.56   512.56        
605223   6/1/2001   511.68   511.68        
605224   6/1/2001   696.50   696.50        
605225   6/1/2001   776.79   776.79        
605226   6/1/2001   519.70   519.70        
605227   6/1/2001   477.50   477.50        
605228   6/1/2001   960.39   960.39        
605229   6/1/2001   881.39   881.39        
605230   6/1/2001   419.14   419.14        
605231   6/1/2001   1,022.04   1,022.04        
605232   6/1/2001   685.28   685.28        
605233   6/1/2001   540.83   540.83        
605234   6/1/2001   492.72   492.72        
605235   6/1/2001   471.24   471.24        

Page 2 of 6


605236   6/1/2001   561.99   561.99        
605237   6/1/2001   944.75   944.75        
605238   6/1/2001   1,867.99   1,867.99        
605239   6/1/2001   1,143.57   1,143.57        
605240   6/1/2001   381.87   381.87        
605241   6/1/2001   506.65   506.65        
605242   6/1/2001   321.22   321.22        
605243   6/1/2001   452.72   452.72        
605244   6/1/2001   965.02   965.02        
605245   6/1/2001   371.07   371.07        
605246   6/1/2001   393.88   393.88        
605247   6/1/2001   465.00   465.00        
605248   6/1/2001   980.32   980.32        
605249   6/1/2001   355.62   355.62        
605250   6/1/2001   465.00   465.00        
605251   6/1/2001   441.79   441.79        
605252   6/1/2001   442.92   442.92        
605253   6/1/2001   1,108.80   1,108.80        
605254   6/1/2001   2,305.51   2,305.51        
Payroll Fees   6/4/2001   174.26           174.26
605255   6/8/2001   533.19   533.19        
605256   6/8/2001                
605257   6/8/2001   363.74   363.74        
605258   6/8/2001   636.09   636.09        
605259   6/8/2001   425.30   425.30        
605260   6/8/2001   421.13   421.13        
605261   6/8/2001   349.51   349.51        
605262   6/8/2001   541.97   541.97        
605263   6/8/2001   619.60   619.60        
605264   6/8/2001   443.69   443.69        
605265   6/8/2001   442.81   442.81        
605266   6/8/2001   696.49   696.49        
605267   6/8/2001   776.78   776.78        
605268   6/8/2001   491.50   491.50        
605269   6/8/2001   421.12   421.12        
605270   6/8/2001   960.39   960.39        
605271   6/8/2001   785.52   785.52        
605272   6/8/2001   436.98   436.98        
605273   6/8/2001   1,022.04   1,022.04        
605274   6/8/2001   685.30   685.30        
605275   6/8/2001   485.85   485.85        
605276   6/8/2001   435.34   435.34        
605277   6/8/2001   421.12   421.12        
605278   6/8/2001   494.31   494.31        
605279   6/8/2001   944.75   944.75        
605280   6/8/2001   1,451.00   1,451.00        
605281   6/8/2001   1,143.58   1,143.58        
605282   6/8/2001   466.23   466.23        
605283   6/8/2001   506.64   506.64        

Page 3 of 6


605284   6/8/2001   393.88   393.88        
605285   6/8/2001   452.71   452.71        
605286   6/8/2001   965.02   965.02        
605287   6/8/2001   455.60   455.60        
605288   6/8/2001   393.87   393.87        
605289   6/8/2001   465.00   465.00        
605290   6/8/2001   980.33   980.33        
605291   6/8/2001   431.98   431.98        
605292   6/8/2001   465.00   465.00        
605293   6/8/2001   441.80   441.80        
605294   6/8/2001   442.91   442.91        
605295   6/8/2001   1,108.81   1,108.81        
605296   6/8/2001   2,305.52   2,305.52        
Tax   6/8/2001   13,984.93       13,984.93    
Payroll Fees   6/11/2001   164.40           164.40
605297   6/15/2001   517.57   517.57        
605298   6/15/2001                
605299   6/15/2001   668.54   668.54        
605300   6/15/2001   742.59   742.59        
605301   6/15/2001   602.76   602.76        
605302   6/15/2001   502.55   502.55        
605303   6/15/2001   583.96   583.96        
605304   6/15/2001   740.15   740.15        
605305   6/15/2001   726.10   726.10        
605306   6/15/2001   665.61   665.61        
605307   6/15/2001   645.60   645.60        
605308   6/15/2001   696.50   696.50        
605309   6/15/2001   1,104.55   1,104.55        
605310   6/15/2001   734.84   734.84        
605311   6/15/2001   605.89   605.89        
605312   6/15/2001   960.38   960.38        
605313   6/15/2001   1,046.95   1,046.95        
605314   6/15/2001   664.03   664.03        
605315   6/15/2001   1,201.65   1,201.65        
605316   6/15/2001   805.67   805.67        
605317   6/15/2001   717.53   717.53        
605318   6/15/2001   657.24   657.24        
605319   6/15/2001   552.65   552.65        
605320   6/15/2001   721.00   721.00        
605321   6/15/2001   1,096.88   1,096.88        
605322   6/15/2001   1,451.00   1,451.00        
605323   6/15/2001   1,143.56   1,143.56        
605324   6/15/2001   466.24   466.24        
605325   6/15/2001   506.65   506.65        
605326   6/15/2001   321.24   321.24        
605327   6/15/2001   452.72   452.72        
605328   6/15/2001   455.59   455.59        
605329   6/15/2001   393.88   393.88        
605330   6/15/2001   465.00   465.00        

Page 4 of 6


605331   6/15/2001   980.32   980.32        
605332   6/15/2001   431.99   431.99        
605333   6/15/2001   384.09   384.09        
605334   6/15/2001   441.79   441.79        
605335   6/15/2001   442.92   442.92        
605336   6/15/2001   2,305.51   2,305.51        
605337   6/15/2001   18,528.66   18,528.66        
Tax   6/15/2001   37,144.58       37,144.58    
Payroll Fees   6/18/2001   130.76           130.76
605338   6/22/2001   526.95   526.95        
605339   6/22/2001   442.81   442.81        
605340   6/22/2001   636.07   636.07        
605341   6/22/2001   412.77   412.77        
605342   6/22/2001   421.12   421.12        
605343   6/22/2001   427.40   427.40        
605344   6/22/2001   421.13   421.13        
605345   6/22/2001   619.58   619.58        
605346   6/22/2001   441.15   441.15        
605347   6/22/2001   442.80   442.80        
605348   6/22/2001   696.49   696.49        
605349   6/22/2001   940.96   940.96        
605350   6/22/2001   477.40   477.40        
605351   6/22/2001   421.12   421.12        
605352   6/22/2001   960.38   960.38        
605353   6/22/2001                
605354   6/22/2001   453.56   453.56        
605355   6/22/2001   1,022.05   1,022.05        
605356   6/22/2001   685.28   685.28        
605357   6/22/2001   375.91   375.91        
605358   6/22/2001   435.33   435.33        
605359   6/22/2001   419.05   419.05        
605360   6/22/2001   511.23   511.23        
605361   6/22/2001   944.75   944.75        
605362   6/22/2001   1,450.99   1,450.99        
605363   6/22/2001   1,143.57   1,143.57        
605364   6/22/2001   466.23   466.23        
605365   6/22/2001   506.64   506.64        
605366   6/22/2001   247.34   247.34        
605367   6/22/2001   452.71   452.71        
605368   6/22/2001   455.60   455.60        
605369   6/22/2001   393.87   393.87        
605370   6/22/2001   465.01   465.01        
605371   6/22/2001   980.33   980.33        
605372   6/22/2001   431.98   431.98        
605373   6/22/2001   465.01   465.01        
605374   6/22/2001   441.80   441.80        
605375   6/22/2001   442.91   442.91        
605376   6/22/2001   2,305.52   2,305.52        
605377   6/22/2001   4,577.98   4,577.98        

Page 5 of 6


Tax   6/22/2001   17,625.26       17,625.26    
Payroll Fees   6/25/2001   137.96           137.96
31465   6/29/2001   499.19   499.19        
31466   6/29/2001   1,046.53   1,046.53        
31467   6/29/2001   34.06   34.06        
605378   6/29/2001   531.65   531.65        
605379   6/29/2001   454.28   454.28        
605380   6/29/2001   636.09   636.09        
605381   6/29/2001   412.78   412.78        
605382   6/29/2001   341.85   341.85        
605383   6/29/2001   336.75   336.75        
605384   6/29/2001   538.87   538.87        
605385   6/29/2001   619.60   619.60        
605386   6/29/2001   447.52   447.52        
605387   6/29/2001   437.70   437.70        
605388   6/29/2001   696.50   696.50        
605389   6/29/2001   940.96   940.96        
605390   6/29/2001   477.41   477.41        
605391   6/29/2001   427.40   427.40        
605392   6/29/2001   960.38   960.38        
605393   6/29/2001   434.45   434.45        
605394   6/29/2001   1,022.04   1,022.04        
605395   6/29/2001   685.30   685.30        
605396   6/29/2001   437.94   437.94        
605397   6/29/2001   397.06   397.06        
605398   6/29/2001   421.12   421.12        
605399   6/29/2001   485.85   485.85        
605400   6/29/2001   944.75   944.75        
605401   6/29/2001   1,143.57   1,143.57        
605402   6/29/2001   381.87   381.87        
605403   6/29/2001   506.64   506.64        
605404   6/29/2001   452.72   452.72        
605405   6/29/2001   371.09   371.09        
605406   6/29/2001   465.00   465.00        
605407   6/29/2001   983.34   983.34        
605408   6/29/2001   431.99   431.99        
605409   6/29/2001   465.00   465.00        
605410   6/29/2001   441.79   441.79        
605411   6/29/2001   442.92   442.92        
605412   6/29/2001   4,659.49   4,659.49        
Tax   6/29/2001   13,542.91       13,542.91    
       
           
TOTAL DISBURSEMENTS-LLC   253,544.25            
       
           

TOTAL DISBURSEMENTS

 

361,740.79

 

230,506.21

 

129,720.50

 

1,514.08
       
 
 
 

Page 6 of 6


In re: eToys, Inc.   Case No. 01-0706 (MFW)
Reporting Period: 06/01/01-06/30/01


STATEMENT OF OPERATIONS (MOR-2)
March 7 through June 30, 2001 and One Month Ended June 30, 2001
UNAUDITED

 
  Mar 7 - Jun 30, '01
  Jun' 01
Ordinary Income/Expense        
    Income        
      Liquidation Proceeds        
        Loss on Disposal of Assets   -27,927,357.20    
        Refunds Received   16,004.61   86.46
        Liquidation Proceeds—Other   396,208.05   459,488.01
   
 
      Total Liquidation Proceeds   -27,515,144.54   459,574.47
   
 
    Total Income   -27,515,144.54   459,574.47
   
 
  Gross Profit   -27,515,144.54   459,574.47
    Expense        
      Advertising   10,845.34   0.00
      Bank Service Charges   137,632.68   100.15
      Dues and Subscriptions   9,144.19   0.00
      Employee Benefits   328,502.38   313,397.23
      Equipment Leases   111,397.78   0.00
      Insurance   480,970.41   307,892.50
      Janitorial Services   0.00   0.00
      Licenses and Permits   3,348.02   0.00
      Miscellaneous   11,699.32   5,273.55
      Moving Expense   0.00   0.00
      Office Relocation Expense   37,333.00   0.00
      Outside Services   93,249.03   16,362.70
      Parking   56,115.97   2,145.00
      Payroll Taxes   63,234.82   5,131.88
      Postage and Delivery   7,320.91   306.00
      Professional Fees        
        Accounting   1,593.59   0.00
        Legal Fees   10,000.00   0.00
   
 
      Total Professional Fees   11,593.59   0.00
      Rent   348,819.08   146,858.07
      Repairs        
        Computer Repairs   138,848.94   0.00
        Equipment Repairs   11,537.01   0.00
        Repairs—Other   66,713.92   66,713.92
   
 
      Total Repairs   217,099.87   66,713.92
      Salaries & Wages        
        Vacation Expense   19,748.25    
        Salaries & Wages—Other   1,205,122.14   101,874.98
   
 
      Total Salaries & Wages   1,224,870.39   101,874.98
      Sales Tax   25,388.98   25,388.98
      Security   763.35   0.00
      Supplies        
        Office   7,370.09   935.85
        Supplies—Other   337.91   0.00
   
 
      Total Supplies   7,708.00   935.85
   
 
      Taxes        
        State   0.00    
        Taxes—Other   27,961.00   -40,655.00
   
 

See accompanying Note to Financial Statements

Page 1 of 2


STATEMENT OF OPERATIONS (MOR-2)
March 7 through June 30, 2001 and One Month Ended June 30, 2001
UNAUDITED

 
  Mar 7 - Jun 30, '01
  Jun' 01
      Taxes   27,961.00   -40,655.00
      Telephone        
        Communications Expense   99,479.56   38,920.31
        Telephone—Other   103,421.86   24,498.02
   
 
      Total Telephone   202,901.42   63,418.33
      Travel & Ent        
        Meals   301.98    
        Travel   4,572.74   447.99
        Travel & Ent—Other   20,351.70   3,738.44
   
 
      Total Travel & Ent   25,226.42   4,186.43
      Uncategorized Expenses   0.00   0.00
      Utilities        
        Gas and Electric   86.69   0.00
        Utilities—Other   0.00   0.00
   
 
      Total Utilities   86.69   0.00
   
 
    Total Expense   3,443,212.64   1,019,330.57
   
 
  Net Ordinary Income   -30,958,357.18   -559,756.10
  Other Income/Expense        
    Other Income        
      Interest Income   139,791.50   14,073.01
      Miscellaneous Income   4,713.09   3,088.18
   
 
    Total Other Income   144,504.59   17,161.19
    Other Expense        
      Reorganization Expenses        
        Other Reorganization Expenses        
          Post-Petition Payments        
            Asset Management   202,070.00   102,000.00
            IT Consulting Services   6,732.50   3,170.00
            Legal Notices/Publication   48,216.13   28,345.96
   
 
          Total Post-Petition Payments   257,018.63   133,515.96
          Pre-Petition Payments        
            Employee Reimbursements   6,020.71    
            Exp Deducted—Sec Dep   6,600.00    
            Other Critical Vendors   8,588.84    
            Payroll   540,337.53   282.98
            Sales & Other Taxes   -4,613.94    
   
 
          Total Pre-Petition Payments   556,933.14   282.98
          Provision for Restructuring Chg   97,853,000.00   97,853,000.00
   
 
        Total Other Reorganization Expenses   98,666,951.77   97,986,798.94
        Professional Fees   2,132,338.84   791,238.75
        U.S. Trustees Fees   5,500.00    
        Reorganization Expenses—Other   100,000.00    
   
 
      Total Reorganization Expenses   100,904,790.61   98,778,037.69
   
 
    Total Other Expense   100,904,790.61   98,778,037.69
   
 
  Net Other Income (Expense)   -100,760,286.02   -98,760,876.50
   
 
Net Loss   -131,718,643.20   -99,320,632.60
   
 

See accompanying Note to Financial Statements

Page 2 of 2


 
   
[ILLEGIBLE]   [ILLEGIBLE]


Balance Sheet (MOR-3)
As of May 31, 2001
UNAUDITED

 
  Jun 30, '01
ASSETS    
  Current Assets    
    Checking/Savings    
      101000B—UBOC DIP A/C   109,965.43
      101100—UBOC Payroll   43,828.71
      101850—UBOC CD   15,073,501.66
      101861—UBOC CD   1,000,947.92
      101862—UBOC CD   3,500,000.00
      101863—UBOC CD   5,800,000.00
      101864—UBOC CD   2,006,416.67
      102000—Wells Fargo CD   100,000.00
      105000—UBOC CD   288,000.00
      106000—UBOC CD   318,552.41
      107000—UBOC CD   187,500.00
      109600—Wells Fargo Credit Crd   103,403.83
   
    Total Checking/Savings   28,532,116.63
    Other Liquidated Debts    
      122500—Employee Receivables   400.00
      129000—A/R Other   607,563.52
      152000—Prepaid Marketing   3,546,581.00
      152500—Prepaid Maintenance   125,872.09
      153000—Prepaid License   83,927.45
      159000—Prepaid Other   2,662,370.17
      241000—Deposits   416,222.00
   
    Total Other Liquidated Debts   7,442,936.23
   
  Total Current Assets   35,975,052.86
  Fixed Assets    
    FF&E    
      202000—Office Equipment   1,199,705.47
      202500—Furniture & Fixtures   145,297.80
      203000—Computer Hardware   6,408,476.32
      204500—Off. Equip. Cap Lease   253,846.17
      205000—Furn & Fixt Cap Lease   750,518.79
      205500—Comp Hdwre Cap Lease   10,719,162.01
      212000—A/D Office Equipment   -319,133.93
      212500—A/D Furn & Fixtures   -31,543.65
      213000—A/D Computer Hardware   -1,544,232.78
      214500—A/D Off. Equip. Cap Lse   -106,402.17
      215000—A/D F & F Cap Lse   -219,089.28
      215500—A/D Comp Hdwr Cap Lse   -5,017,334.09
   
    Total FF&E   12,239,270.66
    Leasehold Improvements    

1


      201000—Leasehold Improvements   7,401,458.00
      211000—Accum. Depr. Lease Imp   -413,074.51
   
    Total Leasehold Improvements   6,988,383.49
   
  Total Fixed Assets   19,227,654.15
  Other Assets    
    I/C Receivables—Post Petition    
      251000 POST—Due From Dist LLC   -11,105,928.41
   
    Total I/C Receivables—Post Petition   -11,105,928.41
    I/C Receivables Pre-Petition    
      251500—Due From eToys Dist   62,252,413.51
      255000—Due From eToys Europe   8,000,000.00
   

See accompanying Notes to Financial Statements

2



Balance Sheet (MOR-3)
As of May 31, 2001
UNAUDITED

 
  Jun 30, '01
    Total I/C Receivables Pre-Petition   70,252,413.51
    Intangible Assets    
      231000—Goodwill   2,596,625.08
      231500—Accum. Amort. Goodwill   -1,121,654.00
      232000—License Fee   2,565,922.69
      232500—Accum. Amort. License   -388,280.31
      243000—Debt Issuance Cost   5,003,543.62
      243500—Accum Amort Debt Costs   -1,066,386.73
      244000—Lease/Loan Orig. Fees   392,545.81
      244500—Accum Amort Lease Fees   -43,749.99
   
    Total Intangible Assets   7,938,566.17
    Reserve—I/C Receivables   -55,000,000.00
    Reserve for Restructuring Chrgs   -23,939,294.95
   
  Total Other Assets   -11,854,243.68
   
TOTAL ASSETS   43,348,463.33
   
LIABILITIES & EQUITY    
  Liabilities    
    Current Liabilities    
      Total Accounts Payable   471,443.49
      Other Current Liabilities    
        Post-Petition Liabilities    
          340000—Accrued Prof Fees   1,606,037.00
          350000—Deposit Liabilities   22,500.00
   
        Total Post-Petition Liabilities   1,628,537.00
   
      Total Current Liabilities   2,099,980.49
      Long Term Liabilities    
        Liabs Subject to Compromise    
        Priority Claims    
          303000P—Gift Certificates   646,521.86
          304500P—Employee Benefits   29,570.00
          311000P—Taxing Authority   137,259.00
          332000P—Employee Comp Liab   222,767.74
   
        Total Priority Claims   1,036,118.60
        Secured Claims    
          351000—Capital Lease Oblgns   9,255,313.94
          352000—L-T Notes Payable   1,107,131.33
   
        Total Secured Claims   10,362,445.27
        Unsecured Claims    
          300000—Accounts Payable   21,353,808.61
          326000—Agreement   2,583,268.44
          327000—Contract   93,805.00
          328000—Litigation   51,899.52

3


          331000—Web Affiliate   185,120.00
          332000—Employee Comp   615,562.49
          335000—Accrued Interest Pyble   2,670,000.75
          351000—Equipment Lease   1,666,630.92
   
          Total 353000—Subordinated N/P   150,000,000.00
   
        Total Unsecured Claims   179,220,095.73
   
      Total Liabs Subject to Compromise   190,618,659.60
   
    Total Long Term Liabilities   190,618,659.60
   
  Total Liabilities   192,718,640.09
   
  Total Equity   -149,370,176.76
   
TOTAL LIABILITIES & EQUITY   43,348,463.33
   

See accompanying Notes to Financial Statements

4


Case No. 01-0706 (MFW)

Notes to Unaudited Financial Statements (MOR-2 & 3)
As of June 30, 2001
UNAUDITED

NOTE 1—Basis of Presentation

    Assets are carried at cost. Amounts anticipated to be realized from the liquidation of the Company's assets are expected to be significantly less than book value. The Company has not been able to definitively determine the amount expected to be realized from the sale of its assets. No adjustment has been made to the cost basis of assets to reflect the lower value.

NOTE 2— Provision For Restructuring and Asset Impairment

    Due to the Company's filing for Chapter 11 protection and the determination that there were no ready buyers for the Company, the Company's assets are being sold and the Company will be liquidated. Cash expected to be realized from the liquidation of the Company's assets is expected to be considerably less than cost basis. Accordingly, management has prepared an estimate of net realizable values and charged a provision to the current month's statement of operations and established a reserve on the Company's balance sheet. There can be no assurance that this reserve is adequate to cover the losses actually realized upon asset sales.


 
   
In re: eToys, Inc
Debtor
  Case No. 01-0706 (MFW)
Reporting Period: 06/01/01-06/30/01


MOR-4
STATUS OF POSTPETITION TAXES

    The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero. Attach photocopies of IRS Form 6123 or payment receipt to verify payment or deposit of federal payroll taxes. Attache photocopies of any tax returns filed during the reporting period.

 
  Beginning
tax
Liability

  Amount
with held or
Actual

  Amount
Paid

  Date paid
  Check No.
  Ending
Tax
Liability

FEDERAL                        
Withholding   0.00   21,324.09   21,324.09   6/1, 6/8, 6/15, 6/22, 6/29   Note 1   0.00
FICA-Employee   0.00   3,556.50   3,556.50   6/1, 6/8, 6/15, 6/22, 6/29   Note 1   0.00
FICA-Employer   0.00   1,488.15   1,488.15   6/1, 6/8, 6/15, 6/22, 6/29   Note 1   0.00
Unemployment   0.00   19.94   19.94   6/1, 6/8, 6/15, 6/22, 6/29   Note 1   0.00
Income   0.00   0.00               0.00
Other:   0.00   0.00               0.00
  Total Federal Taxes   0.00   26,388.68   26,388.68   6/1, 6/8, 6/15, 6/22, 6/29       0.00
STATE AND LOCAL                        
Withholding   0.00   6,322.08   6,322.08   6/1, 6/8, 6/15, 6/22, 6/29   Note 1   0.00
Sales   18,633.02   0.00   18,633.02       Note 2   0.00
Excise   0.00   0.00   0.00           0.00
Unemployment   0.00   67.29   67.29   06/15/01   Note 1   0.00
Real Property   0.00   0.00   0.00           0.00
Personal Property   0.00   0.00   0.00           0.00
Other:   0.00   0.00   0.00           0.00
  Total State and Local   18,633.02   6,389.37   25,022.39           0.00

Total taxes

 

18,633.02

 

32,778.05

 

51,411.07

 

 

 

 

 

0.00

Note 1—All payroll taxes are impounded by the independent payroll service on or about the date of each payroll and remitted to the appropriate agencies.

Note 2—Sales tax paid in April and erroneously recorded. Reclassified in June 2001.


SUMMARY OF UNPAID POSTPETITION DEBTS

    Attach aged listing of accounts payable.

 
  Number of Days Past Due
 
  Current
  1-30
  31-60
  61-90
  > 90
  Total
Accounts payable   16,373.85   265,366.43   145,397.42   44,305.79     471,443.49
Wages payable                        
Taxes Payable                      
Rent/Lease-Equipment                        
Secured Debt/Adequate Protection Payments                        
Professional Fees                       1,606,037.00
Amounts Due to Insiders*                        
Other: Deposit Liabilities                       22,500.00
Other:                        
Total Postpetition Debts                       2,099,980.49

Explain how and when the Debtor intends to pay any past-due postpetition debts.










* "Insider" is defined in 11 U.S.C. Section 101 (31).


In re: eToys, Inc.

Case No. 01-0706 (MFW)


Accounts Payable Aging Report
As of June 30, 2001

 
  Current
  1—30
  31—60
  61—90
  > 90
  TOTAL
AMERICAN STOCK EXCHANGE   0.00   0.00   24.38   0.00   0.00   24.38
ANTHONY, DAVINA   0.00   440.00   0.00   0.00   0.00   440.00
ARCUS DATA SECURITY   0.00   0.00   313.35   0.00   0.00   313.35
AVAYA   0.00   0.00   10,975.41   0.00   0.00   10,975.41
BANC ONE LEASING CORPORATION   0.00   28,841.00   23,258.87   0.00   0.00   52,099.87
BLOOMBERG LP   0.00   0.00   6,662.70   0.00   0.00   6,662.70
CHASE MELLON SHAREHOLDER SERVICES   0.00   0.00   3,348.02   0.00   0.00   3,348.02
COMDISCO INC.   0.00   146,955.01   0.00   0.00   0.00   146,955.01
CROSSROADS, LLC   0.00   350.35   0.00   0.00   0.00   350.35
DE LAGE LANDEN   0.00   28,488.04   0.00   0.00   0.00   28,488.04
EXODUS   0.00   632.26   350.00   0.00   0.00   982.26
FEDERAL EXPRESS   77.34   0.00   0.00   0.00   0.00   77.34
GLOBAL CENTER   0.00   0.00   68,598.74   0.00   0.00   68,598.74
IBM CORPORATION   0.00   11,306.90   11,306.90   0.00   0.00   22,613.80
KILROY REALTY, L.P.   2,931.81   0.00   0.00   0.00   0.00   2,931.81
LEXIS NEXIS   0.00   0.00   478.62   0.00   0.00   478.62
MARSH RISK & INSURANCE SVCS   0.00   -458.00   0.00   0.00   0.00   -458.00
PACIFIC BELL (SAC)   36.22   0.00   187.64   0.00   0.00   223.86
PACIFIC BELL (VAN NUYS)   0.00   50.36   0.00   0.00   0.00   50.36
PANJABI, SATISH   1,862.50   0.00   0.00   0.00   0.00   1,862.50
PBCC   0.00   0.00   994.68   0.00   0.00   994.68
PENNYWORTH SALES   2,000.00   0.00   0.00   0.00   0.00   2,000.00
RANDSTAD   0.00   796.00   0.00   0.00   0.00   796.00
SOUTH BAY SECURITY   0.00   0.00   450.00   0.00   0.00   450.00
SPHERION   418.50   0.00   0.00   0.00   0.00   418.50
SPIEKER PROPERTIES   0.00   86.69   0.00   0.00   0.00   86.69
SPRINT (ATLANTA)   0.00   0.00   8.08   0.00   0.00   8.08
SPRINT (PO BOX 79255)   0.00   9,056.21   0.00   0.00   0.00   9,056.21
SPRINT DATA SVCS   0.00   38,270.02   0.00   44,305.79   0.00   82,575.81
VERIZON CALIFORNIA   6,572.82   551.59   0.00   0.00   0.00   7,124.41
VERIZON WIRELESS-LA   2,474.66   0.00   18,350.03   0.00   0.00   20,824.69
XEROX CORPORATION   0.00   0.00   90.00   0.00   0.00   90.00
   
 
 
 
 
 
  TOTAL ACCOUNTS PAYABLE   16,373.85   265,366.43   145,397.42   44,305.79   0.00   471,443.49
   
 
 
 
 
 

In re: eToys, Inc.

Case No. 01-0706 (MFW)
Reporting Period 06/01/01-06/30/01


MOR-5
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

Accounts Receivable Reconciliation

  Prior Periods
  Current Period
  Cumulative
 
Total Accounts Receivable at the beginning of the reporting period   $ 2,022,818.06   $ 638,124.52   $ 2,022,818.06  
   
 
 
 
(+) Amounts billed during the period     2,114,497.99           2,114,497.99  
   
 
 
 
(-) Amounts collected during the period     (3,499,191.53 )   (18,511.00 )   (3,517,702.53 )
   
 
 
 
(-) Other adjustments, see Note 1         (11,650.00 )   (11,650.00 )
   
 
 
 
Total Accounts Receivable at the end of the reporting period   $ 638,124.52   $ 607,963.52   $ 607,963.52  
   
 
 
 
Accounts Receivable Aging

   
   
   
0-30 days old   $   $      
   
 
   
31-60 days old     2,107.36          
   
 
   
61-90 days old     639,868.67          
   
 
   
91 + days old     12,050.00     607,963.52    
   
 
   
Total Accounts Receivable   $ 654,026.03   $ 607,963.52    
   
 
   
Amount considered uncollectible (Bad Debt)                
   
 
   
Accounts Receivable (Net)   $ 654,026.03   $ 607,963.52    
   
 
   

Note 1: Adjustment for employee receivables that were repaid prior to chapter 11.


DEBTOR QUESTIONNAIRE

Must be completed each month

  Yes
  No
   
1. Have any assets been sold or transferred outside the normal course of business 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 postpetition 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        
   
 
   







UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
OFFICE OF THE US TRUSTEE—REGION 3

 
   
In re: eToys Distribution LLC   Case No. 01-0707 (MFW)
Reporting Period: 06/01/01-06/30/01


MONTHLY OPERATING REPORT

File with Court and submit copy to United States Trustee within 20 days after end of month

    Submit copy of report to any official committee appointed in the case

Required Documents
  Form No.
  Document Attached
  Explanation Attached
Schedule of Cash Receipts and Disbursements   MOR-1   X    
  Bank Reconciliation (or copies of debtor's bank reconciliations)   MOR-1 (CON'T)   X    
  Copies of bank statements       X    
  Cash disbursements journals       X    
Statement of Operations   MOR-2   X    
Balance Sheet   MOR-3   X    
Status of Postpetition Taxes   MOR-4   X    
  Copies of IRS Form 6123 or payment receipt           X
  Copies of tax returns filed during reporting period           X
Summary of Unpaid Postpetition Debts   MOR-4   X    
  Listing of aged accounts payable       X    
Accounts Receivable Reconciliation and Aging   MOR-5   X    
Debtor Questionnaire   MOR-5   X    

    I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.



Signature of Debtor

 


Date


Signature of Joint Debtor

 


Date

/s/ 
BARRY GOLD   
Signature of Authorized Individual

 

7/20/01

Date

Barry Gold

Printed Name of Authorized Individual

 

CEO

Title of Authorized Individual

    *Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.


 
   
In re: eToys Distribution LLC   Case No. 01-0707 (MFW)

    Attachment to Monthly Operating Report (MOR cover page):

    All payroll taxes are impounded by the independent payroll service therefore payment receipt is not applicable.

    There was no tax return filed during the period. Tax return filing extension requests were filed for all necessary Federal and State tax returns for the fiscal year ended March 31, 2001. Payroll and sales tax returns are prepared on a quarterly basis and submitted to respective government agency within thirty days after the end of each quarter.


In re: eToys Distribution LLC   Case No. 01-00707 MFW
  Debtor   Reporting Period 06/01/01-06/30/01


MOR-1
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

    Amounts reported should be per the debtor's books, not the bank statement. The beginning cash should be the ending cash from the prior month or, if this is the first report, the amount should be the balance on the date the petition was filed. The amounts reported in the "CURRENT MONTH-ACTUAL" column must equal the sum of the four bank account columns. The amounts reported in the "PROJECTED" columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM-IR-1). Attach copies of the bank statements and the cash disbursements journal. The total disbursements listed in the disbursements journal must equal the total disbursements reported on this page. A bank reconciliation must be attached for the cash account.

 
  UBOC
Pre-petition

  BofA
Acct No.
1459-2-08325

  Union Bank
Acct No.
2180039778

  Total
 
CASH BEGINNING OF MONTH   0.00   0.00   (361,062.00 ) (361,062.00 )

CASH SALES

 

 

 

 

 

 

 

0.00

 
ACCOUNTS RECEIVABLE               0.00  
LOANS AND ADVANCES               0.00  
SALE OF ASSETS               0.00  
DUE FROM LLC               0.00  
OTHER (attach list)               0.00  
TRANSFERS—SWEEP ACCOUNT               0.00  
TRANSFERS FROM eTOYS INC CD           150,000.00   150,000.00  
TRANSFERS FROM PRE-PETITION               0.00  
TRANSFERS FROM eTOYS INC DIP           700,000.00   700,000.00  
INTEREST               0.00  
TOTAL RECEIPTS   0.00   0.00   850,000.00   850,000.00  

DISBURSEMENTS

 

 

 

 

 

 

 

 

 
NET PAYROLL               0.00  
PAYROLL TAXES               0.00  
SALES,USE,& OTHER TAXES           (19,079.00 ) (19,079.00 )
INVENTORY PURCHASES               0.00  
SECURED/RENT/LEASES           (283,054.33 ) (283,054.33 )
INSURANCE               0.00  
ADMINISTRATIVE           (111,323.50 ) (111,323.50 )
SELLING               0.00  
OTHER (attach list)               0.00  
PRE-PETITION EXPENSES*               0.00  
OWNER DRAW               0.00  
TRANSFERS               0.00  
  Transfer to eToys Inc. DIP               0.00  
  Transfer to PR               0.00  
  Transfer to CD               0.00  
  Due to LLC               0.00  
  Transfer to Pre-petition               0.00  
PROFESSIONAL FEES               0.00  
U.S. TRUSTEE QUARTERLY FEES               0.00  
COURT COSTS               0.00  
TOTAL DISBURSEMENTS   0.00   0.00   (413,456.83 ) (413,456.83 )
NET CASH FLOW   0.00   0.00   436,543.17   436,543.17  
CASH END OF MONTH   0.00   0.00   75,481.17   75,481.17  

*PAYMENTS MADE TO CRITICAL VENDORS AND EMPLOYEE REIMBURSEMENTS PURSUANT TO FIRST DAY ORDER

THE FOLLOWING SECTION MUST BE COMPLETED

TOTAL DISBURSEMENTS     413,456.83
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS     0.00
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES   $  
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES     413,456.83

Note: All payroll disbursements of eToys Distribution LLC were paid by eToys, Inc. and included in Etoys Inc. MOR-1.


 
   
In re: eToys Distribution LLC
Debtor
  Case No. 01-0707 (MFW)
Reporting Period 06/01/01-06/30/01


BANK RECONCILIATIONS
Continuation Sheet for MOR-1

    A bank reconciliation must be included for each bank account. The debtor's bank reconciliation may be substituted for this page

 
  Union Bank of Cal.
2180039778

  Bank of America
1459-2-08325

BALANCE PER BOOKS   $ 75,481.17   $
BANK BALANCE   $ 339,553.21   $
(+) DEPOSITS IN TRANSIT (attach list)         0.00
(-) OUTSTANDING CHECKS (attach list)     (264,072.04 )   0.00
OTHER (attach list)            
ADJUSTED BANK BALANCE   $ 75,481.17   $

*
Adjusted bank balance must equal balance per books

DEPOSITS IN TRANSIT
  Date
  Amount
  Date
  Amount
  Date
  Amount
  Date
  Amount
    None   None                
                                 
                                 
                                 
                                 
                                 
                                 
CHECKS OUTSTANDING

  Ck#
  Amount
  Ck#
  Amount
  Ck#
  Amount
  Ck#
  Amount
    30140 -     5,282.00   None                
    30146 -     315.00                        
    30148 -     590.18                        
    30150 -     98.87                        
    30151 -     181.08                        
    30153 -     4,807.00                        
    30154 -     107,797.91                        
    30155 -     145,000.00                        
Total Outstanding Checks       $ 264,072.04                        
                                   
OTHER                              

   

   

   

 
   
In re: eToys Distribution LLC   Case No. 01-0707 (MFW)


CASH DISBURSEMENTS

June 2001

Date

  Check
Number

  Name

  Amount
6/4/2001   30114   LEASING TECHNOLOGIES INT'L, INC.   $
6/4/2001   30115   LEASING TECHNOLOGIES INT'L, INC.    
6/4/2001   30116   RAYMOND LEASING CORPORATION     30,256.42
6/4/2001   30117   VOLT     9,995.00
6/4/2001   30118   IBM CORPORATION    
6/5/2001   30119   AT&T     31.20
6/5/2001   30120   CITY OF ONTARIO UTILITY DEPARTMENT     197.48
6/5/2001   30121   DOMINION VIRGINIA POWER     53,439.42
6/5/2001   30122   FEDERAL EXPRESS     10.40
6/5/2001   30123   HIGHLAND PAGING, INC.     182.93
6/5/2001   30124   VERIZON — PO BOX 17398     1,391.80
6/5/2001   30125   VERIZON — PO BOX 17577     382.64
6/5/2001   30126   KIDWELL, MICHAEL     105.00
6/7/2001   30127   BURNS INTERNATIONAL SEC. SVCS     5,776.60
6/7/2001   30128   BURNS INTERNATIONAL SEC. SVCS     5,092.00
6/13/2001   30129   DEBBIE'S STAFFING    
6/13/2001   30130   DE PAULA, CONNIE     430.56
6/13/2001   30131   LANGNER SECURITY SERVICES, INC.     8,000.00
6/14/2001   30132   DEBBIE'S STAFFING    
6/14/2001   30133   DEBBIE'S STAFFING     1,956.75
6/14/2001   30134   FRANCHISE TAX BOARD     9,377.00
6/14/2001   30135   FRANCHISE TAX BOARD     9,377.00
6/14/2001   30136   NYS LLC/LLP FEE     325.00
6/15/2001   30137   KIDWELL, MICHAEL     262.50
6/20/2001   30138   BURNS INTERNATIONAL SEC. SVCS    
6/20/2001   30139   BURNS INTERNATIONAL SEC. SVCS     5,863.94
6/20/2001   30140   BURNS INTERNATIONAL SEC. SVCS     5,282.00
6/20/2001   30141   KIDWELL, MICHAEL     262.50
6/21/2001   30142   SCRUGGS, KENNY    
6/21/2001   30143   SCRUGGS, KENNY     300.00
6/21/2001   30144   RUSSELL A. FARROW LTD.    
6/22/2001   30145   SOUTHERN CALIFORNIA EDISON     6,058.68
6/25/2001   30146   KIDWELL, MICHAEL     315.00
6/26/2001   30147   AT&T     15.07
6/26/2001   30148   CITY OF ONTARIO UTILITY DEPARTMENT     590.18
6/26/2001   30149   PACIFIC BELL     147.11
6/26/2001   30150   VERIZON — PO BOX 17398     98.87
6/26/2001   30151   VERIZON — PO BOX 17577     181.08
6/26/2001   30152   VERIZON CALIFORNIA     147.79
6/29/2001   30153   BURNS INTERNATIONAL SEC. SVCS     4,807.00
6/29/2001   30154   EAST BOWLES, LLC     107,797.91
6/29/2001   30155   NG LAND, LLC     145,000.00
           
        TOTAL DISBURSEMENTS   $ 413,456.83
           

STATEMENT OF OPERATIONS (MOR-2)

March 7 through June 30, 2001 and One Month Ended June 30, 2001

UNAUDITED

 
  Mar-June '01
  June '01
Ordinary Income/Expense        
  Income        
    Liquidation Proceeds        
      Loss on Disposal of Assets   -38,308,708.11   -176,511.92
      Other Income   838.20    
      Refunds Received   1,159.08   851.77
      Liquidation Proceeds—Other   2,135,144.32   0.00
   
 
    Total Liquidation Proceeds   -36,171,566.51   -175,660.15
   
 
  Total Income   -36,171,566.51   -175,660.15
  Cost of Goods Sold        
    Cost of Goods Sold   2,044,470.55   0.00
   
 
  Total COGS   2,044,470.55   0.00
   
 
Gross Profit (Loss)   -38,216,037.06   -175,660.15
  Expense        
    Automobile Expense   715.53    
    Dues and Subscriptions   22.56    
    Equipment Leases   312,521.70   30,256.42
    Equipment Rental   8,580.20   265.50
    Freight   274,576.82    
    Miscellaneous   1,149.24    
    Outside Services   1,584.33   607.38
    Payroll taxes   91,117.67   17,303.87
    Postage and Delivery   180.10    
    Rent   1,839,725.85   659,763.83
    Repairs        
      Equipment Repairs   3,855.91    
   
 
    Total Repairs   3,855.91   0.00
    Salaries & Wages        
      Vacation Expense   31,316.57    
      Salaries & Wages—Other   1,107,029.16   230,997.96
   
 
    Total Salaries & Wages   1,138,345.73   230,997.96
    Security   107,043.50   32,973.44
    Supplies        
      Office   162.40   300.00
      Supplies—Other   2,349.48    
   
 
    Total Supplies   2,511.88   300.00
    Taxes   19,079.00   19,079.00
    Telephone        
      Communications Expense   2,148.68   1,352.14
      Telephone—Other   48,426.20   4,607.06
   
 
    Total Telephone   50,574.88   5,959.20
    Temporary Help   72,146.41   14,612.94
    Travel & Ent        
      Travel   2,178.82   1,165.56
      Travel & Ent—Other   562.34   210.00
   
 

    Total Travel & Ent   2,741.16   1,375.56
    Utilities        
      Gas and Electric   173,915.59   80,384.37
      Water   1,723.27   804.46
      Utilities—Other   24,464.40   6,058.68
       
    Total Utilities   200,103.26   87,247.51
   
 
    Total Expense   4,126,575.73   1,100,742.61
   
 
Net Ordinary Income   -42,342,612.79   -1,276,402.76
Other Income/Expense        
    Other Income        
      Other Income   734.65    
   
 
    Total Other Income   734.65   0.00
    Other Expense        
    Reorganization Expenses        
      Other Reorganization Expenses        
        Pre-Petition Payments        
          Employee Reimbursements   7,780.08    
          Exp Charged—Sec Dep   1,029,090.00    
          Other Critical Vendors   27,523.51    
   
 
      Total Pre-Petition Payments   1,064,393.59   0.00
      Provision for Restructuring Chg   54,251,000.00   54,251,000.00
   
 
    Total Other Reorganization Expenses   55,315,393.59   54,251,000.00
    U.S. Trustees Fees   3,750.00    
    Reorganization Expenses—Other   76,961.27    
  Total Reorganization Expenses   55,396,104.86   54,251,000.00
   
 
  Total Other Expense   55,396,104.86   54,251,000.00
   
 
Net Other Income (Expense)   -55,395,370.21   -54,251,000.00
   
 
  Net Loss   -97,737,983.00   -55,527,402.76
   
 

See accompanying Note to Financial Statements


 
   
In re: eToys Distribution LLC   Case No. 01-0707 (MFW)


Balance Sheet (MOR-3)
As of June 30, 2001
UNAUDITED

 
  Jun 30, '01
ASSETS    
  Current Assets    
    Checking/Savings    
      102000—UBOC DIP ACCOUNT   75,481.17
   
    Total Checking/Savings   75,481.17
    Other Current Assets    
      Inventory    
        131000—Inventory   1,628,239.72
   
      Total Inventory   1,628,239.72
      Other Liquidated Debts    
        122500—Employee Receivables   10,919.59
        129000—A/R Other   4,635.04
        155000—A/P Debit Balances   887,426.73
        159000—Other Prepaid Expenses   45,632.18
   
      Total Other Liquidated Debts   948,613.54
   
    Total Other Current Assets   2,576,853.26
   
  Total Current Assets   2,652,334.43
  Fixed Assets    
    Machinery & Equipment    
      201000—Leasehold Improvements   30,698,429.04
      201500—Heavy Equipment   2,511,662.88
      204000—Heavy Equip Cap Lse   10,069,284.07
      211000—A/D Leasehold Impr   -860,480.96
      211500—A/D Heavy Equipment   -80,326.78
      214000—A/D Heavy Eq Cap Lse   -326,090.20
   
    Total Machinery & Equipment   42,012,478.05
    Office Equipment & Furnishings    
      202000—Office Equipment   2,220,343.57
      202500—Furniture & Fixtures   1,776,903.22
      203000—Computer Hardware   1,813,253.39
      204500—Off Equip Cap Lse   3,169,392.68
      205000—Furn & Fix Cap Lse   1,669,178.61
      205500—Comp Hardware Cap Lse   3,537,520.06
      212000—A/D Office Equipment   -556,698.19
      212500—A/D Furn & Fixtures   -138,786.70
      213000—A/D Computer Hardware   -435,952.39
      214500—A/D off Equip Cap Lse   -263,968.32
      215000—A/D Furn & Fix Cap Lse   -122,973.58
      215500—Comp Hdwre Cap Lse   -781,790.45
   
    Total Office Equipment & Furnishings   11,886,421.90

    Vehicles    
      201800—Vehicle Equipment   63,697.11
      206500—Vehicle — Cap Lease   866,408.64
      211800—A/D Vehicle Equipment   -961.26
      216500—A/D Vehicle Cap Lease   -53,721.25
   
    Total Vehicles   875,423.24
   
  Total Fixed Assets   54,774,323.19
  Other Assets    
    Intangible Assets    
      244000—Lease/Loan Orig Fee   241,894.63
      244500—Accum Amort Loan Fees   -46,627.37
   
    Total Intangible Assets   195,267.26
    Reserve for Restructuring   -54,251,000.00
    Security Deposits    
      105000—USPS   75,000.00
      241000—Other Security Deposit   1,404,466.48
   
    Total Security Deposits   1,479,466.48
   
  Total Other Assets   -52,576,266.26
   
TOTAL ASSETS   4,850,391.36
   

LIABILITIES & EQUITY

 

 
  Liabilities    
    Current Liabilities    
      Accounts Payable    
        Accounts Payable   318,957.35
   
      Total Accounts Payable   318,957.35
      Other Current Liabilities    
        Post-Petition Liabilities    
          ESPP Liab   -301.32
          I/C Due to eToys, Inc.   -11,105,928.41
          Other Payroll Withholdings   137.31
          Vacation Accrual   31,316.57
   
        Total Post-Petition Liabilities   -11,074,775.85
   
      Total Other Current Liabilities   -11,074,775.85
   
    Total Current Liabilities   -10,755,818.50
    Long Term Liabilities    
      Liabs Subject to Compromise    
        Priority Claims    
          311000—Sales and Use Taxes   2,503,620.11
          332000P—Emp Claims Priority   162,969.44
   
        Total Priority Claims   2,666,589.55
        Secured Claims    
          351000—Capital Lease Oblgtns   11,431,105.14
          352000—L-T Notes Payable   11,939,562.59
   
        Total Secured Claims   23,370,667.73

        Unsecured Claims    
          301000—Accounts Payable   48,163,156.67
          303500—Equipment Lease   27,443.24
          332000U—Emp. Claims Unsecured   315,417.43
          I/C—Due to eToys, Inc.   65,413,313.98
   
        Total Unsecured Claims   113,919,331.32
   
      Total Liabs Subject to Compromise   139,956,588.60
   
    Total Long Term Liabilities   139,956,588.60
   
  Total Liabilities   129,200,770.10
   
  Total Equity   -124,350,378.74
   
TOTAL LIABILITIES & EQUITY   4,850,391.36
   

See accompanying notes to financial statements.


 
   
[ILLEGIBLE]   Case No. 01-0707 (MFW)


Notes to Unaudited Financial Statements
As of June 30, 2001
UNAUDITED

NOTE 1—Basis of Presentation

    Assets are carried at cost. Amounts anticipated to be realized from the liquidation of the Company's assets are expected to be significantly less than book value. The Company has not been able to definitively determine the amount expected to be realized from the sale of its assets. No adjustment has been made to the cost basis of assets to reflect the lower value.

NOTE 2—Provision For Restructuring and Asset Impairment

    Due to the Company's filing for Chapter 11 protection and the determination that there were no ready buyers for the Company, the Company's assets are being sold and the Company will be liquidated. Cash expected to be realized from the liquidation of the Company's assets is expected to be considerably less than cost basis. Accordingly, management has prepared an estimate of net realizable values and charged a provision to the current month's statement of operations and established a reserve on the Company's balance sheet. There can be no assurance that this reserve is adequate to cover the losses actually realized upon asset sales.


 
   
In re: eToys Distribution LLC
Debtor
  Case No. 01-0707 (MFW)
Reporting Period: 06/01/01-06/30/01


MOR-4
STATUS OF POSTPETITION TAXES

    The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero. Attach photocopies of IRS Form 6123 or payment receipt to verify payment or deposit of federal payroll taxes. Attache photocopies of any tax returns filed during the reporting period.

 
  Beginning
tax
Liability

  Amount
withheld or
Actual

  Amount
Paid

  Date
paid

  Check No.
  Ending
Tax
Liability

FEDERAL                        
Withholding   0.00   65,691.07   65,691.07    6/1,6/8,6/15,6/22,6/29   Note 1   0.00
FICA-Employee   0.00   13,586.23   13,586.23    6/1,6/8,6/15,6/22,6/29   Note 1   0.00
FICA-Employer   0.00   3,416.64   3,416.64    6/1,6/8,6/15,6/22,6/29   Note 1   0.00
Unemployment   0.00   56.00   56.00   06/15/01   Note 1   0.00
Income   0.00   0.00               0.00
Other:   0.00   0.00               0.00
  Total Federal Taxes   0.00   82,749.94   82,749.94    6/1,6/8,6/15,6/22,6/29       0.00
STATE AND LOCAL                        
Withholding   0.00   13,947.51   13,947.51    6/1,6/8,6/15,6/22,6/29   Note 1   0.00
Sales   0.00   0.00   0.00           0.00
Excise   0.00   0.00   0.00           0.00
Unemployment   0.00   245.00   245.00   06/15/01       0.00
Real Property   0.00   0.00   0.00           0.00
Personal Property   0.00   0.00   0.00           0.00
Other:   0.00   0.00   0.00           0.00
  Total State and Local   0.00   14,192.51   14,192.51           0.00
Total taxes   0.00   96,942.45   96,942.45           0.00

    Note 1—All payroll taxes are impounded by the independent payroll service on or about the date of each payroll and remitted to the appropriate agencies


SUMMARY OF UNPAID POSTPETITION DEBTS

    Attach aged listing of accounts payable.

 
  Number of Days Past Due
 
 
  Current
  1-30
  31-60
  61-90
  > 90
  Total
 
Accounts payable     145,757.84   87,936.93   82,243.69   3,018.89   318,957.35  
Wages payable                          
Taxes Payable                          
Rent/Lease-Equipment                          
Secured Debt/Adequate Protection Payments                          
Professional Fees                          
Amounts Due to Insiders*                          
Other: Vacation Accrual                       31,316.57  
Other: Post Petition Liabilities                       (164.01 )
Total Postpetition Debts                       350,109.91  

    Explain how and when the Debtor intends to pay any past-due postpetition debts.











*"Insider" is defined in 11 U.S.C. Section 101 (31).


 
   
In re: eToys Distribution LLC   Case No. 01-0707 (MFW)


Accounts Payable Aging Report
As of June 30, 2001

 
  Current
  1-30
  31-60
  61-90
  >90
  TOTAL
  ADELPHIA   0.00   0.00   3.06   0.00   0.00   3.06
  ASCOM HASLER LEASING   0.00   0.00   0.00   585.04   0.00   585.04
  AT&T   0.00   31.54   0.00   0.00   0.00   31.54
  BTI   0.00   0.00   4,076.97   0.00   0.00   4,076.97
  BURNS INTERNATIONAL SEC. SVCS   0.00   4,807.00   0.00   0.00   0.00   4,807.00
  DEBBIE'S STAFFING   0.00   583.10   0.00   0.00   0.00   583.10
  DOMINION VIRGINIA POWER   0.00   80,384.37   0.00   0.00   0.00   80,384.37
  HIGHLAND PAGING, INC.   0.00   0.00   461.13   0.00   0.00   461.13
  HOMESTEAD MATERIALS HANDLING   0.00   0.00   0.00   0.00   3,018.89   3,018.89
  IBM CORPORATION   0.00   52,856.26   43,476.86   52,856.26   0.00   149,189.38
  K-9 SECURITY FORCE   0.00   1,215.00   0.00   0.00   0.00   1,215.00
  LEASING TECHNOLOGIES INT'L, INC.   0.00   0.00   39,190.00   0.00   0.00   39,190.00
  NEXTEL COMMUNICATIONS   0.00   2,230.15   0.00   0.00   0.00   2,230.15
  PACIFIC BELL   0.00   300.66   82.31   0.00   0.00   382.97
  PITTSYLVANIA COUNTY SERVICE AUTHORITY   0.00   214.28   0.00   0.00   0.00   214.28
  RAYMOND LEASING CORPORTATION   0.00   0.00   0.00   27,958.79   0.00   27,958.79
  RUSSELL A. FARROW LTD   0.00   265.50   0.00   0.00   0.00   265.50
  VERIZON—PO BOX 17398   0.00   1,562.15   0.00   0.00   0.00   1,562.15
  VERIZON—PO BOX 17577   0.00   382.85   0.00   0.00   0.00   382.85
  VERIZON CALIFORNIA   0.00   924.98   0.00   0.00   0.00   924.98
  XEROX CORPORATION   0.00   0.00   646.60   843.60   0.00   1,490.20
   
 
 
 
 
 
TOTAL   0.00   145,757.84   87,936.93   82,243.69   3,018.89   318,957.35
   
 
 
 
 
 

In re: eToys Distribution LLC   Case No. 01-0707 (MFW)
  Debtor   06/01/01-06/30/01


MOR-5
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

Accounts Receivable Reconciliation

  Amount
Total Accounts Receivable at the beginning of the reporting period   $ 10,919.59
(+) Amounts billed during the period     4,635.04
(-) Amounts collected during the period    
Total Accounts Receivable at the end of the reporting period   $ 15,554.63

Accounts Receivable Aging

  Amount
0-30 days old   $ 4,635.04
31-60 days old    
61-90 days old    
91 + days old     10,919.59
Total Accounts Receivable     15,554.63
Amount considered uncollectible (Bad Debt)    
Accounts Receivable (Net)   $ 15,554.63

DEBTOR QUESTIONNAIRE

Must be completed each month

  YES
  NO
1. Have any assets been sold or transferred outside the normal course of business 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 postpetition tax returns been timely filed? If no, provide an explanation below.   X    
4. Are workers comensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below.   X    














UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE

 
   
In re eKids, Inc.   Case No. 01-0708 (MFW)
Reporting Period: 06/01/01-06/30/01


MONTHLY OPERATING REPORT
File with Court and submit copy to United States Trustee within 20 days after end of month

    Submit copy of report to any official committee appointed in the case

Required Documents

  Form No.
  Document
Attached

  Explanation
Attached

Schedule of Cash Receipts and Disbursements   MOR-1   Not Applicable    
  Bank Reconciliation (or copies of debtor's bank reconciliations)   MOR-1 (CON'T)   Not Applicable    
  Copies of bank statements       Not Applicable    
  Cash disbursements journals       Not Applicable    
Statement of Operations   MOR-2   Not Applicable    
Balance Sheet   MOR-3   Not Applicable    
Status of Postpetition Taxes   MOR-4   Not Applicable    
  Copies of IRS Form 6123 or payment receipt       Not Applicable    
  Copies of tax returns filed during reporting period       Not Applicable    
Summary of Unpaid Postpetition Debts   MOR-4   Not Applicable    
  Listing of aged accounts payable       Not Applicable    
Accounts Receivable Reconciliation and Aging   MOR-5   Not Applicable    
Debtor Questionnaire   MOR-5   Not Applicable    

    I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.

 
   
   

 

 

 

 

 

Signature of Debtor
     
Date


Signature of Joint Debtor

 

 

 


Date

/s/ 
BARRY GOLD   
Signature of Authorized Individual

 

 

 

7/20/01

Date

/s/ 
BARRY GOLD   
Printed Name of Authorized Individual

 

 

 

CEO

Title of Authorized Individual

*Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.


In re:   eKids, Inc.   Case No. 01-00708 (MFW)
    Debtor   Reporting Period 06/01/01-06/30/01


MOR-1
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

    Amounts reported should be per the debtor's books, not the bank statement. The beginning cash should be the ending cash from the prior month or, if this is the first report, the amount should be the balance on the date the petition was filed. The amounts reported in the "CURRENT MONTH-ACTUAL" column must equal the sum of the four bank account columns. The amounts reported in the "PROJECTED" columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM-IR-1). Attach copies of the bank statements and the cash disbursements journal. The total disbursements listed in the disbursements journal must equal the total disbursements reported on this page. A bank reconciliation must be attached for the cash account.

 
   
   
   
  Total
CASH BEGINNING OF MONTH   NOT APPLICABLE           0.00
CASH SALES               0.00
ACCOUNTS RECEIVABLE               0.00
LOANS AND ADVANCES               0.00
SALE OF ASSETS               0.00
DUE FROM LLC               0.00
OTHER (attach list)               0.00
TRANSFERS—SWEEP ACCOUNT               0.00
TRANSFERS—UK               0.00
TRANSFERS FROM PRE-PETITION               0.00
TRANSFERS FROM eTOYS INC DIP               0.00
INTEREST               0.00
TOTAL RECEIPTS               0.00

DISBURSEMENTS

 

 

 

 

 

 

 

 
NET PAYROLL               0.00
PAYROLL TAXES               0.00
SALES,USE,& OTHER TAXES               0.00
INVENTORY PURCHASES               0.00
SECURED/RENT/LEASES               0.00
INSURANCE               0.00
ADMINISTRATIVE               0.00
SELLING               0.00
OTHER (attach list)               0.00
PRE-PETITION EXPENSES               0.00
OWNER DRAW               0.00
TRANSFERS               0.00
  Transfer to eToys Inc. DIP               0.00
  Transfer to PR               0.00
  Transfer to CD               0.00
  Due to LLC               0.00
  Transfer to Pre-petition               0.00
PROFESSIONAL FEES               0.00
U.S. TRUSTEE QUARTERLY FEES               0.00
COURT COSTS               0.00
TOTAL DISBURSEMENTS               0.00
NET CASH FLOW   0.00   0.00   0.00   0.00
CASH END OF MONTH       0.00   0.00   0.00

THE FOLLOWING SECTION MUST BE COMPLETED

TOTAL DISBURSEMENTS     0.00
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS     0.00
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES   $  
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES     0.00

 
   
In re: eKids, Inc.   Case No. 01-0708 (MFW)
Debtor   Reporting Period 06/01/01-06/30/01


BANK RECONCILIATIONS

    Continuation Sheet for MOR-1

A bank reconciliation must be included for each bank account. The debtor's bank reconciliation may be substituted for this page

 
  NOT APPLICABLE
   
   
   
BALANCE PER BOOKS

   
   
   
   
BANK BALANCE                
   
 
 
 
(+) DEPOSITS IN TRANSIT (attach list)                
   
 
 
 
(-) OUTSTANDING CHECKS (attach list)                
   
 
 
 
OTHER (attach list)                
   
 
 
 
ADJUSTED BANK BALANCE                
   
 
 
 
*
Adjusted bank balance must equal balance per books

DEPOSITS IN TRANSIT

  Date    Amount
  Date    Amount
  Date    Amount
  Date    Amount
    None   None        
   
 
 
 
                 
   
 
 
 
                 
   
 
 
 
                 
   
 
 
 
CHECKS OUTSTANDING

  Ck#   Amount
  Ck#   Amount
  Ck#   Amount
  Ck#   Amount
                   
   
 
 
 
                   
   
 
 
 
                   
   
 
 
 
                   
   
 
 
 
                   
   
 
 
 
                   
   
 
 
 
                   
   
 
 
 
                   
   
 
 
 
                   
   
 
 
 
                   
   
 
 
 
                   
   
 
 
 
                   
   
 
 
 
                   
   
 
 
 
                   
   
 
 
 
                   
   
 
 
 
                   
   
 
 
 
                   
   
 
 
 
                   
   
 
 
 
                   
   
 
 
 
                   
   
 
 
 
                   
   
 
 
 
Total Outstanding Checks   $            
   
 
 
 

OTHER






 
   
In re: eKids, Inc.
Debtor
  Case No. 01-00708 (MFW)
Reporting Period 06/01/01-06/30/01


MOR-2
STATEMENT OF OPERATIONS
(Income Statement)

NOT APPLICABLE

    The Statement of Operations is to be prepared on an accrual basis. The accrual basis of accounting recognizes revenue when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid

 
  MONTH
  FILING TO DATE
REVENUES            
Gross Revenues   $     $  
Less: Returns and Allowances            
Net Revenue   $     $  
COST OF GOODS SOLD            
Beginning Inventory            
Add: Purchases            
Add: Cost of Labor            
Add: Other Costs (attach schedule)            
Less: Ending Inventory            
Cost of Goods Sold            
Gross Profit            
OPERATING EXPENSE            
Advertising            
Auto and Truck Expense            
Bad Debts            
Contributions            
Employee Benefits Programs            
Insider Compensation [as defined in 11 U.S.C. Section 101(31)]            
Insurance            
Management Fees/Bonuses            
Office Expense            
Pension & Profit-Sharing Plans            
Repairs and Maintenance            
Rent and Lease Expense            
Salaries/Commissions/Fees            
Supplies            
Taxes-payroll            
Taxes-Other            
Travel and Entertainment            
Utilities            
Other (attach schedule)            
Total Operating Expense Before Depreciation            
Depreciation/Depletion/Amortization            
Net Profit (Loss) Before Other Income & Expenses            
OTHER INCOME AND EXPENSES            
Other Income (attach schedule)            
Interest Expense            

6


Other Expense (attach schedule)            
Net Profit (Loss) before Reorganization Items            
             
Professional Fees            
U.S. Trustee Quarterly Fees            
Interest Earned on Accumulated Cash from Chapter 11 (see cont. sheet)            
Gain (Loss) from Sale of Equipment            
Other Reorganization Expenses (attach schedule)            
Total Reorganization Expenses            
Income Taxes            
Net Profit (Loss)   $     $  

7


 
   
In re: eKids, Inc.
Debtor
  Case No. 01-00708 (MFW)
Reporting Period 06/01/01-06/30/01


MOR-2 (continued)
STATEMENT OF OPERATIONS

NOT APPLICABLE

BREAKDOWN OF OTHER CATEGORY

  MONTH
  FILING TO DATE
    June 30, 2001    
OTHER COSTS        
         
         
         
         
         
OTHER OPERATIONAL EXPENSES        
         
         
         
         
         
OTHER INCOME        
         
         
         
         
         
OTHER EXPENSES        
         
         
         
         
         
OTHER REORGANIZATION EXPENSES        
         
         
         
         
         

Reorganization Items-interest Earned on Accumulated Cash From Chapter 11
Interest earned on cash accumulated during the chapter 11 case, which would not have been earned bur for the Bankruptcy proceeding, should be reported as a reorganization item.


 
   
In re: eKids, Inc.
Debtor
  Case No. 01-00708 (MFW)
Reporting Period 06/01/01-06/30/01


MOR-3
BALANCE SHEET

    NOT APPLICABLE

 
  June 30, 2001
   
ASSETS

  MONTH
  MONTH
Cash (Unrestricted)   NOT APPLICABLE    
   
 
Cash (restricted)        
   
 
Accounts Receivable (net)        
   
 
Inventory        
   
 
Notes Receivable        
   
 
Prepaid Expenses        
   
 
Other (Attach List)        
   
 
Total Current Assets        
   
 
         
Real Property & Improvements        
   
 
Machinery & Equipment        
   
 
Furniture, Fixtures & Office Equipment        
   
 
Vehicles        
   
 
Leasehold Improvements        
   
 
Less: Accumulated Deprec/Depletion        
   
 
Total Property, Plant & Equipment        
   
 
Liabilities not subject to compromise (Postpetition Liabilities)        
   
 
Accounts payable        
   
 
Taxes Payable        
   
 
Notes payable        
   
 
Professional Fees        
   
 
Secured Debt        
   
 
Due to Affiliates & Insiders        
   
 
Other (Attach List)        
   
 
Total postpetition Liabilities        
   
 
Liabilities subject to compromise (Postpetition Liabilities)        
   
 
Secured Debt-Per Plan        
   
 
Priority Debt-Per Plan        
   
 
Unsecured Debt-Per Plan        
   
 
Other (Attach List)-Per Plan        
   
 
Total Prepetition Liabilities        
   
 
Total Liabilities        
   
 
Equity        
   
 
Common Stock        
   
 
Retained Earnings (Deficit)        
   
 
Total Equity (Deficit)        
   
 
Total Liabilities & Owner's Equity        
   
 

In re: eKids, Inc.   Case No. 01-00708 (MFW)
Debtor   Reporting Period 06/01/01-06/30/01


MOR-3 continued
BALANCE SHEET

NOT APPLICABLE

ASSETS   BOOK VALUE AT END OF
CURRENT REPORTING MONTH
  BOOK VALUE ON
PETITION DATE

Other Current Assets        
         
    NOT APPLICABLE    
         
         
         
         
         
Other Assets        
         
         
         
         
LIABILITIES AND DOWNER EQUITY   BOOK VALUE AT END OF
CURRENT REPORTING MONTH
  BOOK VALUE ON
PETITION DATE

         
         
         
         
         
         
Adjustments to Owner Equity        
         
         
         
         
         
         
Postpetitions Contributions Distributions (Draws)        
         
         
         
         
         
         
         

Restricted cash: cash that is restricted for a specific use and not available to fund operations. Typically, restricted cash is segregated into a separate account, such as an escrow account.


    eKids, Inc., debtor herein, is a holding company formed to hold certain intellectual property assets. As reflected on the Schedules of Assets and Liabilities filed with the Bankruptcy Court, Debtor has no checking accounts, no accounts receivable and the intellectual property assets which were to be held by Debtor were never transferred to Debtor nor recorded on its books and records. The Debtor is a non-operating entity, and therefore, all documents required by the Office of the United States Trustee for its Monthly Operating Report are not applicable and have been marked accordingly.


 
   
In re eKids, Inc.
Debtor
  Case No. 01-0708 (MFW)
Reporting Period 06/01/01-06/30/01


MOR-4
STATUS OF POSTPETITION TAXES

    The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero. Attach photocopies of IRS Form 6123 or payment receipt to verify payment or deposit of federal payroll taxes. Attach photocopies of any tax returns filed during the reporting period.

 
  Beginning
tax
Liability

  Amount
with held or
Actual

  Amount
Paid

  Date
paid

  Check
No.

  Ending
Tax
Liability

FEDERAL                        
Withholding   NOT APPLICABLE            
FICA-Employee                        
FICA-Employer                        
Unemployment                        
Income                        
Other:                        
  Total Federal Taxes                        
STATE AND LOCAL                        
Withholding                        
Sales                        
Excise                        
Unemployment                        
Real Property                        
Personal Property                        
Other:                        
  Total State and Local                        
Total taxes                        


SUMMARY OF UNPAID POSTPETITION DEBTS

Attach aged listing of accounts payable.

 
   
   
  Number of Days Past Due
   
 
  Current
  1-30
  31-60
  61-90
  over 90
  Total
Accounts payable   NOT APPLICABLE            
Wages payable                        
Taxes Payable                        
Rent/Lease-Equipment                        
Secured Debt/Adequate Protection Pymnts                        
Professional Fees                        
Amounts Due to Insiders*                        
Other: Deposit Liabilities                        
Other:                        
Other: Vacation Accrual                        
Total Postpetition Debts                        

8


Explain how and when the Debtor intends to pay any past-due postpetition debts.








* "Insider" is defined in 11 U.S.C. Section 101 (31).

9


In re: eKids, Inc.   Case No. 01-00708 (MFW)
    Reporting Period: 06/01/01 - 06/30/01

MOR-5
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
(NOT APPLICABLE)


Accounts Receivable Reconciliation

 

Prior Periods

Current Period

Cumulative

Total Accounts Receivable at the beginning of the reporting period

 

 

 

 

(+) Amounts billed during the period

 

 

 

 

(-) Amounts collected during the period

 

 

 

 

Total Accounts Receivable at the end of the reporting period

 

 

 

 

Accounts Receivable Aging

 

 

 

 

0-30 days old

 

 

 

 

31-60 days old

 

 

 

 

61-90 days old

 

 

 

 

91 + days old

 

 

 

 

Total Accounts Receivable

 

 

 

 

Amount considered uncollectible (Bad Debt)

 

 

 

 

Accounts Receivable (Net)

 

 

 

 

DEBTOR QUESTIONNAIRE (Not Applicable)

 

 

 

 

Must be completed each month

 

Yes

No

 


1.


Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, Provide an explanation below.


 


 


 


 

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.

 

 

 

 

3.

Have all postpetition tax returns been timely filed? If no, provide an explanation below.

 

 

 

 

4.

Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below.

 

 

 

 






UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE

 
   
In re PMJ Corporation   Case No. 01-0709 (MFW)
Reporting Period: 06/01/01-06/30/01


MONTHLY OPERATING REPORT
File with Court and submit copy to United States Trustee within 20 days after end of month

    Submit copy of report to any official committee appointed in the case

Required Documents
  Form No.
  Document Attached
  Explanation Attached
Schedule of Cash Receipts and Disbursements   MOR-1   Not Applicable    
  Bank Reconciliation (or copies of debtor's bank reconciliations)   MOR-1 (CON'T)   Not Applicable    
  Copies of bank statements       Not Applicable    
  Cash disbursements journals       Not Applicable    
Statement of Operations   MOR-2   Not Applicable    
Balance Sheet   MOR-3   Not Applicable    
Status of Postpetition Taxes   MOR-4   Not Applicable    
  Copies of IRS Form 6123 or payment receipt       Not Applicable    
  Copies of tax returns filed during reporting period       NotApplicable    
Summary of Unpaid Postpetition Debts   MOR-4   Not Applicable    
  Listing of aged accounts payable       Not Applicable    
Accounts Receivable Reconciliation and Aging   MOR-5   Not Applicable    
Debtor Questionnaire   MOR-5   Not Applicable    

    I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.

 
   
   

Signature of Debtor
     
Date


Signature of Joint Debtor

 

 

 


Date


/s/ 
BARRY GOLD  
Signature of Authorized Individual


 


 


 


7/20/01

Date


/s/ 
BARRY GOLD  
Printed Name of Authorized Individual


 


 


 


CEO

Title of Authorized Individual

    *Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.


In re: eKids, Inc.   Case No. 01-00709 (MFW)
     Debtor   Reporting Period 06/01/01-06/30/01


MOR-1
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

Amounts reported should be per the debtor's books, not the bank statement. The beginning cash should be the ending cash from the prior month or, if this is the first report, the amount should be the balance on the date the petition was filed. The amounts reported in the "CURRENT MONTH-ACTUAL" column must equal the sum of the four bank account columns. The amounts reported in the "PROJECTED" columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM-IR-1). Attach copies of the bank statements and the cash disbursements journal. The total disbursements listed in the disbursements journal must equal the total disbursements reported on this page. A bank reconciliation must be attached for the cash account.

 
   
   
   
   
  Total

                     
CASH BEGINNING OF MONTH   NOT APPLICABLE               0.00
                     
                     
CASH SALES                   0.00
ACCOUNTS RECEIVABLE                   0.00
LOANS AND ADVANCES                   0.00
SALE OF ASSETS                   0.00
DUE FROM LLC                   0.00
OTHER (attach list)                   0.00
TRANSFERS — SWEEP ACCOUNT                   0.00
TRANSFERS — UK                   0.00
TRANSFERS FROM PRE-PETITION                   0.00
TRANSFERS FROM eTOYS INC DIP                   0.00
INTEREST                   0.00
TOTAL RECEIPTS                   0.00
                     
DISBURSEMENTS                    
NET PAYROLL                   0.00
PAYROLL TAXES                   0.00
SALES,USE,& OTHER TAXES                   0.00
INVENTORY PURCHASES                   0.00
SECURED/RENT/LEASES                   0.00
INSURANCE                   0.00
ADMINISTRATIVE