EX-99.1 3 a2069027zex-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. 01-00706 (MFW)
Reporting Period: 12/01/01-12/31/01


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
 
1/17/02
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. 01-00706 (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.

      The following page lists the tax returns filed during the period. The returns are too voluminous to attach. Copies can be requested by contacting eToys.

eToys Inc & Subsidiaries
Income Tax Returns
For the Year Ended 3/31/01

U.S. Corporation Income Tax Return    
    Entity   Tax ID   Form   File Date
    ETOYS, INC.   95-4633006   Form 1120   December 17, 2001
    ETOYS, INC.   95-4633006   Form 5471   December 17, 2001

Connecticut Corporation Tax Return
 
 
    Entity   Tax ID   Form   File Date
    ETOYS, INC.   95-4633006   CT-1120   January 1, 2001

New York General Business Corporation Franchise Tax Return
 
 
    Entity   Tax ID   Form   File Date
    ETOYS, INC.   95-4633006   CT-3   December 17, 2001

New York State General Corporation MTA Surcharge Return
 
 
    Entity   Tax ID   Form   File Date
    ETOYS, INC.   95-4633006   Form CT-3M/4M   December 17, 2001

New York State City General Corporation Tax Return
 
 
    Entity   Tax ID   Form   File Date
    ETOYS, INC.   95-4633006   NYC-3L   December 17, 2001
In re: eToys, Inc
Debtor		   Case No. 01-00706 (MFW)
Reporting Period: 12/01/01-12/31/01

Notes to Unaudited Financial Statements (MOR-2, 3)
As of December 31, 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. As assets have been sold through this liquidation process, the Debtor has written off the difference between book value and liquidation value on the financial statements. The remaining assets are still being carried at book value, however, a reserve account has been set up to reflect the estimated loss (see footnote 2).

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 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.

NOTE 3 -
 
Restricted Cash

 
 
The Company has set aside $40,000 in a separate account and reserved an additional $15,000 in a non-segregated account. These amounts represent proceeds from the sale of certain equipment in which purported secured lenders claim an interest, and have been earmarked for satisfaction of those claims if and to the extent allowed. The Company reserves all rights, claims, defenses and counter claims.

NOTE 4 -
 
Contingent Liabilities - Administrative Claims

 
 
On December 7, 2001, the bar date for the filing of administrative claims passed. Prior to the bar date, administrative claims totaling approximately $17,611,000 were filed against eToys, Inc. The Company is undertaking a review and reconciliation of the administrative claims filed, a process that has not yet been completed. Based on a preliminary review of the administrative claims filed, it appears that some actually duplicate pre-petition unsecured claims and some involve lease rejection claims, which would not be properly classified as Administrative Claims. Until the reconciliation process is complete, and claims objections heard by the Court, the Debtor can make no representations or provide any assurances regarding the Administrative Claims, which would be paid ahead of any distribution to pre-petition creditors.

NOTE 5 -
 
Contingent Liabilities - Operating Lease Claims

 
 
Numerous claims have been received from lessors who are creditors under operating leases and capital leases. The amounts of the liabilities under the operating leases have not been determined and have not been recognized on the Company's financial statements.

In re: eToys, Inc.

Case No. 01-00706 MFW
Reporting Period 12/01/01-12/31/01

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
5300155253
   UBOC CD
2869003059
   UBOC MM
2860113492
   UBOC MM
2860113506
   UBOC CD
2189005826
   UBOC MM
2860113522
   UBOC CD
2189000603
   UBOC CD
2869003034
   WFB
Cert.
Of Dep.
   UBOC CD
2189003821
CASH BEGINNING OF MONTH   —   43,648.21   1,582.39   —   19,962,458.40   20,692,546.93   0.00   40,004.93   0.00   0.00   0.00   0.00

CASH SALES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ACCOUNTS RECEIVABLE
(NOTE 2)		                                    
LOANS AND ADVANCES                                                
SALE OF ASSETS       100,000.00                                        
DUE FROM LLC                                                
OTHER (attach list)       199,619.34                                        
TRANSFER FROM DISTRIBUTION LLC                                                
TRANSFER FROM CD                   288,000.00                            
TRANSFERS FROM MONEY MARKET       270,000.00                                        
TRANSFERS FROM DIP GENERAL           19,300.00                                    
INTEREST       756.96           29,069.82   29,961.66       50.96                
TOTAL RECEIPTS   —   570,376.30   19,300.00   —   317,069.82   29,961.66   0.00   50.96   0.00   0.00   0.00   0.00
                                                 
DISBURSEMENTS                                                
NET PAYROLL           (12,279.24 )                                  
PAYROLL TAXES           (6,565.23 )                                  
SALES,USE,& OTHER TAXES                                                
INVENTORY PURCHASES                                                
SECURED/RENT/LEASES       (81,363.00 )                                      
INSURANCE       (20,275.89 )                                      
ADMINISTRATIVE       (26,728.03 ) (1,065.24 )                                  
SELLING                                                
OTHER (attach list)                                                
PRE-PETITION EXPENSES (NOTE 1)                                                
OWNER DRAW                                                
TRANSFERS                                                
  Transfer to LLC DIP       (40,000.00 )                                      
  Transfer to PR       (19,300.00 )                                      
  Transfer to CD                                                
  Transfer to DIP General                   (270,000.00 )                          
  Transfer to Money Market                                                
PROFESSIONAL FEES       (412,015.50 )                                      
U.S. TRUSTEE QUARTERLY FEES                                                
COURT COSTS                                                
TOTAL DISBURSEMENTS   0.00   (599,682.42 ) (19,909.71 ) 0.00   (270,000.00 ) 0.00   0.00   0.00   0.00   0.00   0.00   0.00

NET CASH FLOW
 
0.00
 
(29,306.12
)
(609.71
)
0.00
 
47,069.82
 
29,961.66
 
0.00
 
50.96
 
0.00
 
0.00
 
0.00
 
0.00

CASH END OF MONTH
 
0.00
 
14,342.09
 
972.68
 
0.00
 
20,009,528.22
 
20,722,508.59
 
0.00
 
40,055.89
 
0.00
 
0.00
 
0.00
 
0.00

NOTE 1 - PAYMENTS MADE TO CRITICAL VENDORS AND EMPLOYEE REIMBURSEMENTS PURSUANT TO FIRST DAY ORDER

NOTE 2 - ACCOUNTS RECEIVABLE COLLECTIONS ON BEHALF OF ETOYS DISTRIBUTION LLC (CASE NO. 01-00707).

        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 12/01/01-12/31/01

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

 
   UBOC CD
2869002614
   UBOC CD
2869002770
   UBOC CD
2869002754
   UBOC CD
2869003042
   UBOC CD
5309026234
   UBOC CD
5309028479
   UBOC Stock
5300161903
   WFB
060-8526315
   Total
  

CASH BEGINNING OF MONTH
 
288,000.00
 
0.00
 
0.00
 
0.00
 
187,500.00
 
0.00
 
0.00
 
0.00
 
41,215,740.86
 

CASH SALES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.00
 
ACCOUNTS RECEIVABLE
(NOTE 2)		                                   0.00  
LOANS AND ADVANCES                                   0.00  
SALE OF ASSETS                                   100,000.00  
DUE FROM LLC                                   0.00  
OTHER (attach list)                                   199,619.34  
TRANSFERS—SWEEP ACCOUNT                                   0.00  
TRANSFER FROM CD                                   288,000.00  
TRANSFERS FROM MONEY MARKET                                   270,000.00  
TRANSFERS FROM DIP GENERAL                                   19,300.00  
INTEREST                                   59,839.40  
TOTAL RECEIPTS   0.00   0.00   0.00   0.00   0.00   0.00   0.00   0.00   936,758.74  

DISBURSEMENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET PAYROLL                                   (12,279.24 )
PAYROLL TAXES                                   (6,565.23 )
SALES,USE,& OTHER TAXES                                   0.00  
INVENTORY PURCHASES                                   0.00  
SECURED/RENT/LEASES                                   (81,363.00 )
INSURANCE                                   (20,275.89 )
ADMINISTRATIVE                                   (27,793.27 )
SELLING                                   0.00  
OTHER (attach list)                                   0.00  
PRE-PETITION EXPENSES (NOTE 1)                                   0.00  
OWNER DRAW                                   0.00  
TRANSFERS                                   0.00  
  Transfer to LLC DIP                                   (40,000.00 )
  Transfer to PR                                   (19,300.00 )
  Transfer to CD                                   0.00  
  Transfer to DIP General                                   (270,000.00 )
  Transfer to Money Market   (288,000.00 )                             (288,000.00 )
PROFESSIONAL FEES                                   (412,015.50 )
U.S. TRUSTEE QUARTERLY FEES                                   0.00  
COURT COSTS                                   0.00  
TOTAL DISBURSEMENTS   (288,000.00 ) 0.00   0.00   0.00   0.00   0.00   0.00   0.00   (1,177,592.13 )

NET CASH FLOW
 
(288,000.00
)
0.00
 
0.00
 
0.00
 
0.00
 
0.00
 
0.00
 
0.00
 
(240,833.39
)

CASH END OF MONTH
 
0.00
 
0.00
 
0.00
 
0.00
 
187,500.00
 
0.00
 
0.00
 
0.00
 
40,974,907.47
 

NOTE 1 - PAYMENTS MADE TO CRITICAL VENDORS AND EMPLOYEE REIMBURSEMENTS PURSUANT TO FIRST DAY ORDER

NOTE 2 - ACCOUNTS RECEIVABLE COLLECTIONS ON BEHALF OF ETOYS DISTRIBUTION LLC (CASE NO.. 01-00707).

        THE FOLLOWING SECTION MUST BE COMPLETED

TOTAL DISBURSEMENTS   $ 1,177,592.13  
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS   $ (617,300.00 )
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES   $    
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES   $ 560,292.13  

Page 2 of 2

In re: eToys, Inc.   Case No. 01-00706 (MFW)
Reporting Period: 12/01/01-12/31/01

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   2860113506   2869002945
C.   Purpose (Type):   DIP General   Payroll   Stock   Money Market   Time Deposit

1.
 
Balance per Bank Statement
 
 
 
$
575,838.52
 
 
 
$
37,925.29
 
 
 
$
-
 
 
 
$
20,722,508.59
 
 
 
$
-
2.   (+) Deposit in Transit                                                  
3.   (-) Outstanding Checks         (561,496.43 )       (36,952.61 )                            
4.   Other                   -                              
5.   Month End Balance per Books       $ 14,342.09       $ 972.68       $ -       $ 20,722,508.59       $ -
6.   Number of Last Check Written         20480         605614                              
                                                        
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
        20375     8,000.00         SEE ATTACHED LIST         none         none         not applicable
        20401     10,716.00                                        
        20423     71,060.13                                        
        20424     80,478.65                                        
        20429     10,054.60                                        
        20445     31,000.00                                        
        20451     230.00                                        
        20453     230.00                                        
        20454     230.00                                        
        20461     418.82                                        
        20462     231.59                                        
        20463     180.00                                        
        20464     380.00                                        
        20465     585.00                                        
        20466     290.00                                        
        20467     670.00                                        
        20468     180.00                                        
        20469     100.00                                        
        20470     220.00                                        
        20472     3,421.92                                        
        20473     232.48                                        
        20474     170.72                                        
        20475     10,410.24                                        
        20476     99,946.85                                        
        20477     87,025.70                                        
        20478     12,821.20                                        
        20479     131,821.75                                        
        20480     368.31                                        
        300005     14.99                                        
        300011     7.48                                        

Total Checks Outstanding
 
 
 
$
561,496.43
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Page 1 of 4

In re: eToys, Inc.   Case No. 01-00706 (MFW)
Reporting Period: 12/01/01-12/31/01

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.:   2869003042   2860113492   5309026234   2869003034   2860113522
C.   Purpose (Type):   Time Deposit   Money Market   Time Deposit   Time Deposit   Time Deposit

1.
 
Balance per Bank Statement
 
 
 
$
-
 
 
 
$
20,009,528.22
 
 
 
$
187,500.00
 
 
 
$
-
 
 
 
$
40,055.89
2.   (+) Deposit in Transit                                                  
3.   (-) Outstanding Checks                                                  
4.   Other Reconciling Items                                                  
5.   Month End Balance per Books       $ -       $ 20,009,528.22       $ 187,500.00       $ -       $ 40,055.89
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

Page 2 of 4

In re: eToys, Inc.   Case No. 01-00706 (MFW)
Reporting Period: 12/01/01-12/31/01

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
 
$
 
 
-
 
$
 
 
-
 
$
 
 
-
 
$
 
 
-
 
$
 
 
-
2.   (+) Deposit in Transit                                                  
3.   (-) Outstanding Checks                                                  
4.   Other Reconciling Items                                                  
5.   Month End Balance per Books   $     -   $     -   $     -   $     -   $     -
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

Page 3 of 4

In re: eToys, Inc.   Case No. 01-00706 (MFW)
Reporting Period: 12/01/01-12/31/01

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
 
 
 
$
—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
41,573,356.51
 
2.   (+) Deposit in Transit                                                 0.00  
3.   (-) Outstanding Checks                                                 (598,449.04 )
4.   Other Reconciling Items                                                 0.00  
5.   Month End Balance per Books       $ -       $ -       $ -       $ -       $ 40,974,907.47  
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            

Page 4 of 4

In re: eToys, Inc.   Case No. 01-00706 (MFW)

UNION BANK PAYROLL ACCOUNT
OUTSTANDING CHECKS
December 31, 2001

CHECKNUM
   CHECK DATE
   NET AMOUNT
00010024   03/01/01   2,145.48
00020077   03/01/01   123.34
00031164   03/01/01   948.84
00031165   03/01/01   4,065.28
00031232   03/01/01   90.34
00040393   03/01/01   4,281.94
00040394   03/01/01   299.40
00305692   03/06/01   37.50
00305700   03/06/01   2,764.29
00305770   03/06/01   1,036.41
00305827   03/06/01   80.47
00305837   03/06/01   171.40
00305839   03/06/01   171.49
00305844   03/06/01   91.45
00305845   03/06/01   86.17
00305847   03/06/01   37.49
00305848   03/06/01   133.66
00305854   03/06/01   293.66
00305876   03/06/01   180.08
00305883   03/06/01   125.27
00305914   03/06/01   191.95
00305919   03/06/01   248.56
00305923   03/06/01   119.62
00305937   03/06/01   117.48
00305943   03/06/01   148.29
00305945   03/06/01   294.50
00305968   03/06/01   316.55
00305972   03/06/01   281.38
00305976   03/06/01   140.70
00305977   03/06/01   290.34
00305992   03/06/01   224.53
00305999   03/06/01   281.38
00306003   03/06/01   183.15
00306004   03/06/01   316.56
00306005   03/06/01   309.53
00603580   03/06/01   65.07
00603850   03/06/01   442.62
00603862   03/06/01   484.70
00603931   03/06/01   330.82
00603935   03/06/01   363.49
00603945   03/06/01   218.40
00603949   03/06/01   126.61
00603950   03/06/01   123.11
00603980   03/06/01   116.43
00603988   03/06/01   133.64
In re: eToys, Inc.   Case No. 01-00706 (MFW)

UNION BANK PAYROLL ACCOUNT
OUTSTANDING CHECKS
December 31, 2001

CHECKNUM
   CHECK DATE
   NET AMOUNT
00603990   03/06/01   191.40
00020086   03/09/01   218.07
00604003   03/16/01   59.10
00604048   03/16/01   87.94
00031401   03/23/01   423.15
00604154   03/23/01   365.22
00031415   03/28/01   3.28
00604319   03/30/01   271.09
00604354   03/30/01   456.52
00604454   04/06/01   295.27
00306068   04/13/01   803.58
00306084   04/13/01   2,513.04
00604630   04/13/01   950.67
00604650   04/13/01   629.01
00604654   04/13/01   1,402.64
00306125   04/20/01   28.11
00306149   04/20/01   33.59
00306157   04/20/01   48.90
00306161   04/20/01   228.66
00306162   04/20/01   19.22
00306189   04/20/01   84.74
00040593   05/04/01   1,205.91
00031426   05/18/01   303.10
306456   12/21/2001   1,277.76
306457   12/28/2001   852.61
306458   12/28/2001   1,166.66

 
 
 
 
        36,952.61
       

In re: eToys, Inc.   CASH DISBURSEMENTS
PAYROLL ACCOUNT
December 2001		   Case No. 01-00706 (MFW)
 
  

   
    
    
CHECKNUM
   CHECK DATE
   NET
AMOUNT
   NET
CHECKS
   PAYROLL TAXES
   FEES
Fees   12/03/2001   165.16           165.16
306451   12/07/2001   852.60   852.60        
306452   12/07/2001   1,194.43   1,194.43        
Taxes   12/07/2001   1,141.42       1,141.42    
Fees   12/10/2001   121.44           121.44
306453   12/14/2001   852.61   852.61        
306454   12/14/2001   1,277.76   1,277.76        
Taxes   12/14/2001   1,200.75       1,200.75    
Fees   12/17/2001   121.50           121.50
Taxes   12/21/2001   1,200.75       1,200.75    
306455   12/21/2001   852.61   852.61        
306456   12/21/2001   1,277.76   1,277.76        
Fees   12/24/2001   144.32           144.32
Taxes   12/28/2001   1,121.61       1,121.61    
306457   12/28/2001   852.61   852.61        
306458   12/28/2001   1,166.66   1,166.66        
Fees   12/28/2001   139.85           139.85
Fees   12/31/2001   8.71           8.71
Fees   12/31/2001   16.86           16.86
       
           
TOTAL DISBURSEMENTS-eToys, Inc.       13,709.41            
       
           
Fees   12/03/2001   147.66           147.66
605613   12/07/2001   1,976.10   1,976.10        
Taxes   12/07/2001   950.35       950.35    
Fees   12/10/2001   96.10           96.10
605614   12/14/2001   1,976.10   1,976.10        
Taxes   12/14/2001   950.35       950.35    
Fees   12/17/2001   103.64           103.64
       
           
TOTAL DISBURSEMENTS-LLC       6,200.30            
       
 
 
 
TOTAL DISBURSEMENTS       19,909.71   12,279.24   6,565.23   1,065.24
       
 
 
 

Page 1 of 1

In re: eToys, Inc.   Cash Disbursements
December 2001		   Case No. 01-00706 (MFW)
Date
   Num
   Name
   Amount
12/03/2001   20431   ACE PARKING MGMT, INC.   390.00
12/03/2001   20432   ARTER-RODRIGUEZ, DENISE   2,191.56
12/03/2001   20433   COLLATERAL LOGISTICS, INC   29,000.00
12/03/2001   20434   INVESTMENT TECHNOLOGY GROUP   6,363.00
12/03/2001   20435   PENTECH FINANCIAL SERVICES, INC.   75,000.00
12/03/2001   20436   RIGHT CLICK LLC   25.00
12/03/2001   20437   VERIZON CALIFORNIA   111.59
12/03/2001   20438   RECALL-INFORMATION MNT   170.00
12/05/2001   20439   FEDERAL EXPRESS   109.84
12/05/2001   20440   GOLD, BARRY   160.00
12/05/2001   20441   HARTFORD LIFE INSURANCE COMPANIES   71.21
12/05/2001   20442   YOUNG, BYNNE   712.80
12/05/2001   20443   STATE COMPENSATION INSURANCE FUND   9,022.93
12/10/2001   20444   COLLATERAL LOGISTICS, INC   —
12/10/2001   20445   COLLATERAL LOGISTICS, INC   31,000.00
12/10/2001   20446   COLLATERAL LOGISTICS, INC   20,400.00
12/13/2001   20447   ARTER-RODRIGUEZ, DENISE   2,567.25
12/13/2001   20448   VERIZON CALIFORNIA   2,865.10
12/17/2001   20449   DOCUSOURCE   108.22
12/18/2001   20450   ARTER-RODRIGUEZ, DENISE   2,788.80
12/18/2001   20451   CHIU, ALBERT   230.00
12/18/2001   20452   FLORES, CHRIS   230.00
12/18/2001   20453   KHURSHEED, WAJEEH   230.00
12/18/2001   20454   KHURSHEED, WASI   230.00
12/18/2001   20455   RODRIGUEZ, RAY   230.00
12/18/2001   20456   YOUNG, ADAM   230.00
12/18/2001   20457   YOUNG, BYNNE   345.00
12/18/2001   20458   YOUNG, BYNNE   —
12/18/2001   20459   YOUNG, BYNNE   1,353.12
12/19/2001   20460   GOLD, BARRY   4,483.53
12/26/2001   20461   FEDERAL EXPRESS   418.82
12/26/2001   20462   GOLD, BARRY   231.59
12/26/2001   20463   CHIU, ALBERT   180.00
12/26/2001   20464   FLORES, CHRIS   380.00
12/26/2001   20465   HODA, MOHAMMED   585.00
12/26/2001   20466   KHURSHEED, WAJEEH   290.00
12/26/2001   20467   KHURSHEED, WASI   670.00
12/26/2001   20468   NGWGEN, HAN   180.00
12/26/2001   20469   RODRIGUEZ, RAY   100.00
12/26/2001   20470   YOUNG, ADAM   220.00
12/26/2001   20471   YOUNG, BYNNE   60.00
12/26/2001   20472   ARTER-RODRIGUEZ, DENISE   3,421.92
12/27/2001   20473   CIGNA BEHAVIORAL HEALTH   232.48
12/27/2001   20474   PMI   170.72
12/28/2001   20475   BLUE CROSS OF CALIFORNIA   10,410.24
12/28/2001   20476   CROSSROADS, LLC   99,946.85
12/28/2001   20477   MORRIS, NICHOLS, ARSHT & TUNNELL   87,025.70
12/28/2001   20478   RICHARD CARTOON, LLC   12,821.20
12/28/2001   20479   TRAUB, BONACQUIST & FOX, LLP   131,821.75
12/28/2001   20480   VISION SERVICE PLAN   368.31
12/31/2001   A 12-4   Union Bank of California   228.89
           
        Subtotal   540,382.42
           
        ADD: Payroll Disbursements (see attached)   19,909.71
           
        Total Disbursements   560,292.13
           

Page 1 of 1

In re: eToys, Inc.   Case No. 00706 (MFW)

STATEMENT OF OPERATIONS (MOR-2)
March 7 through December 31, 2001 and One Month Ended December 31, 2001
UNAUDITED

 
   Mar 7 - Dec 31, '01
   Dec '01
Ordinary Income/Expense        
    Income        
      Liquidation Proceeds        
        Cancellation of Debt   330,679.40   0.00
        Loss on Disposal of Assets   -27,927,357.20   0.00
        Refunds Received   15,918.15   0.00
        Liquidation Proceeds - Other   734,624.73   99,760.07
   
 
      Total Liquidation Proceeds   -26,846,134.92   99,760.07
   
 
    Total Income   -26,846,134.92   99,760.07
   
 
  Gross Profit   -26,846,134.92   99,760.07
    Expense        
      Advertising   10,845.34   0.00
      Bank Service Charges   137,682.68   0.00
      Dues and Subscriptions   731.47   -7,673.00
      Employee Benefits   327,524.60   -1,697.69
      Equipment Leases   163,693.98   74,910.00
      Insurance   802,555.06   9,022.93
      Licenses and Permits   3,348.02   0.00
      Miscellaneous   7,838.99   -18,686.67
      Moving Expense   9,686.00   0.00
      Office Relocation Expense   37,333.00   0.00
      Outside Services   159,965.71   -3,248.39
      Parking   59,709.47   0.00
      Payroll Taxes   76,419.82   -473.10
      Postage and Delivery   9,018.83   511.09
      Professional Fees        
        Accounting   1,593.59   0.00
        Legal Fees   13,868.94   0.00
   
 
      Total Professional Fees   15,462.53   0.00
      Rent   398,167.63   3,431.19
      Repairs        
        Building Repairs   186.06   0.00
        Computer Repairs   263,365.18   8,508.72
        Equipment Repairs   561.60   -10,975.41
   
 
      Total Repairs   264,112.84   -2,466.69
      Salaries & Wages        
        Vacation Expense   19,748.25   0.00
        Salaries & Wages - Other   1,332,013.21   12,481.44
   
 
      Total Salaries & Wages   1,351,761.46   12,481.44
      Sales Tax   25,388.98   0.00
      Security   0.00   -763.35
      Supplies        
        Office   8,976.16   108.22
        Supplies - Other   337.91   0.00
   
 
      Total Supplies   9,314.07   108.22
      Taxes - Other   30,861.98   0.00
      Telephone        
        Communications Expense   119,779.56   -81,237.59
        Telephone - Other   99,650.87   -9,810.73
   
 
      Total Telephone   219,430.43   -91,048.32

    See accompanying Notes To Financial Statements   Page 1 of 2
In re: eToys, Inc.   Case No. 00706 (MFW)

STATEMENT OF OPERATIONS (MOR-2)
March 7 through December 31, 2001 and One Month Ended December 31, 2001
UNAUDITED

      Travel & Ent        
        Meals   301.98   0.00
        Travel   7,472.08   301.53
        Travel & Ent - Other   46,650.36   4,815.12
   
 
      Total Travel & Ent   54,424.42   5,116.65
      Utilities        
        Gas and Electric   0.00   -86.69
        Water   -531.16   0.00
   
 
      Total Utilities   -531.16   -86.69
   
 
    Total Expense   4,174,746.15   -20,562.38
   
 
  Net Ordinary Income   -31,020,881.07   120,322.45
  Other Income/Expense        
    Other Income        
      Interest Income   786,156.54   60,041.23
      Miscellaneous Income   1,624.91   0.00
      Other Income   2,791,620.97   179,894.65
   
 
    Total Other Income   3,579,402.42   239,935.88
    Other Expense        
      Reorganization Expenses        
        Other Reorganization Expenses        
          Post-Petition Payments        
            Asset Management        
            Commission   81,800.00   51,400.00
            Asset Management—Other   433,017.05   0.00
   
 
            Total Asset Management   514,817.05   51,400.00
            IT Consulting Services   6,732.50   0.00
            Legal Notices/Publication   62,609.51   0.00
            Miscellaneous Expense   1,966.70   228.89
            Record Storage   9,354.75   0.00
   
 
          Total Post-Petition Payments   595,480.51   51,628.89
          Pre-Petition Payments        
            Employee Reimbursements   6,020.71   0.00
            Exp Deducted - Sec Dep   6,600.00   0.00
            Other Critical Vendors   8,588.84   0.00
            Payroll   535,337.53   0.00
            Sales & Other Taxes   85,469.07   0.00
   
 
          Total Pre-Petition Payments   642,016.15   0.00
          Provision for Restructuring Chg   97,853,000.00   0.00
   
 
        Total Other Reorganization Expenses   99,090,496.66   51,628.89
        Outside Services   45,319.01   35,946.26
        Professional Fees   4,577,229.69   367,769.50
        U.S. Trustees Fees   22,000.00   0.00
   
 
      Total Reorganization Expenses   103,735,045.36   455,344.65
   
 
    Total Other Expense   103,735,045.36   455,344.65
   
 
  Net Other Income   -100,155,642.94   -215,408.77
   
 
Net Loss   -131,176,524.01   -95,086.32
   
 

    See accompanying Notes To Financial Statements   Page 2 of 2
In re: eToys, Inc.   Case No. 01-00706 (MFW)

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

 
   Dec 31, '01
ASSETS    
  Current Assets    
    Cash    
      Restricted Cash   55,055.89
      Unrestricted Cash   40,919,851.58
   
    Total Cash   40,974,907.47
    Other Current Assets    
      Other Liquidated Debts    
        122500 - Employee Receivables   400.00
        129000 - A/R Other   607,563.52
        152000 - Prepaid Marketing   992,917.10
        152500 - Prepaid Maintenance   68,069.77
        153000 - Prepaid License   83,927.45
        159000 - Prepaid Other   1,044,533.16
        241000 - Deposits   416,222.00
   
      Total Other Liquidated Debts   3,213,633.00
   
    Total Other Current Assets   3,213,633.00
   
  Total Current Assets   44,188,540.47
  Fixed Assets    
    FF&E    
      202000 - Office Equipment   950,200.47
      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   11,989,765.66
    Leasehold Improvements    
      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   18,978,149.15
  Other Assets    
    I/C Receivables - Post Petition    
      251000 POST - Due From Dist LLC   -12,980,803.22
   
      Total I/C Receivables - Post Petition   -12,980,803.22
    I/C Receivables Pre-Petition    
      251500 - Due From eToys Dist   62,252,413.51
      255000 - Due From eToys Europe   1,769,504.33
   
    Total I/C Receivables Pre-Petition   64,021,917.84
    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
   
    See accompanying Notes to Financial Statements   Page 1 of 2
In re: eToys, Inc.   Case No. 01-00706 (MFW)

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

 
   Dec 31, '01
    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   -19,959,614.16
   
TOTAL ASSETS   43,207,075.46
   
LIABILITIES & EQUITY    
  Liabilities    
    Current Liabilities    
      Accounts Payable    
        Accounts Payable   247,263.21
   
      Total Accounts Payable   247,263.21
      Other Current Liabilities    
        Post-Petition Liabilities    
          340000 - Accrued Prof Fees   1,726,131.89
   
        Total Post-Petition Liabilities   1,726,131.89
   
      Total Other Current Liabilities   1,726,131.89
   
    Total Current Liabilities   1,973,395.10
    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   216,458.62
   
        Total Priority Claims   1,029,809.48
        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   20,803,196.06
          326000 - Agreement   2,583,268.44
          327000 - Contract   93,805.00
          328000 - Litigation   51,899.52
          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
          353000 - Subordinated N/P    
            353000 A - Subordinated N/P   89,000,000.00
            353000 B - Subordinated N/P   61,000,000.00
   
          Total 353000 - Subordinated N/P   150,000,000.00
   
        Total Unsecured Claims   178,669,483.18
   
      Total Liabs Subject to Compromise   190,061,737.93
   
    Total Long Term Liabilities   190,061,737.93
   
  Total Liabilities   192,035,133.03
   
  Total Equity   -148,828,057.57
   
TOTAL LIABILITIES & EQUITY   43,207,075.46
   
    See accompanying Notes to Financial Statements   Page 2 of 2
 
  
    
In re: eToys, Inc   Case No. 01-00706 (MFW)
                Debtor   Reporting Period: 12/01/01-12/31/01

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 withheld or Actual
   Amount Paid
   Date paid
   Check No.
   Ending Tax Liability
FEDERAL                        
Withholding   0.00   2,799.43   2,799.43   Dec. 7, 14, 21, & 28   Note 1   0.00
FICA-Employer   0.00   510.13   510.13   Dec. 7, 14, 21, & 28   Note 1   0.00
FICA-Employee   0.00   510.13   510.13   Dec. 7, 14, 21, & 28   Note 1   0.00
Tax Adjustment   0.00   0.00   0.00           0.00
Tax Refund   0.00   0.00   0.00           0.00
Unemployment   0.00   0.00   0.00           0.00
Income   0.00   0.00   0.00           0.00
Other:   0.00   0.00   0.00           0.00
  Total Federal Taxes   0.00   3,819.69   3,819.69           0.00
STATE AND LOCAL                        
Withholding   0.00   844.84   844.84   Dec. 7, 14, 21, & 28   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   0.00   0.00           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   844.84   844.84           0.00

Total taxes
 
0.00
 
4,664.53
 
4,664.53
 
 
 
 
 
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   63.35   —   —   —   247,199.86   247,263.21
Wages payable                        
Taxes Payable                       —
Rent/Lease-Equipment                        
Secured Debt/Adequate Protection Payments                        
Professional Fees                       1,726,131.89
Amounts Due to Insiders*                        
Other: Deposit Liabilities                        
Other:                        
Total Postpetition Debts                       1,973,395.10
Explain how and when the Debtor intends to pay any past-due postpetition debts.
Debtor has adequate funds available to pay post-petition obligations. However, payments to some vendors have been delayed
pending resolution of disputed balances and adjudication of motions for allowance of administrative claims.
 
 
 

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

In re: eToys, Inc.   Case No. 01-00706 (MFW)
Reporting Period 12/01/01-12/31/01

MOR-5
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

Accounts Receivable Reconciliation
   Amount
Total Accounts Receivable at the beginning of the reporting period   $ 607,963.52
(+) Amounts billed during the period      
(-) Amounts collected during the period      
(-) Other adjustments      
Total Accounts Receivable at the end of the reporting period   $ 607,963.52

Accounts Receivable Aging
 
 
 
0-30 days old   $  
31-60 days old      
61-90 days old      
91 + days old     607,963.52
Total Accounts Receivable   $ 607,963.52
Amount considered uncollectible (Bad Debt)      
Accounts Receivable (Net)   $ 607,963.52

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    

Assets/inventory and/or scrap was sold outside the normal course of business as a result of the company operating in a
liquidation process.




In re: eToys, Inc.
 
eToys, Inc.
Accounts Payable Aging Report
As of December 31, 2001
 
Case No.  01-00706 MFW
 
   Current
   1 - 30
   31 - 60
   61 - 90
   > 90
   TOTAL
  BANC ONE LEASING CORPORATION   0.00   0.00   0.00   0.00   52,099.87 (1) 52,099.87
  COMDISCO INC.   0.00   0.00   0.00   0.00   146,955.01 (1) 146,955.01
  DE LAGE LANDEN   0.00   0.00   0.00   0.00   28,488.04 (1) 28,488.04
  FEDERAL EXPRESS   63.35   0.00   0.00   0.00   0.00   63.35
  MARSH RISK & INSURANCE SVCS   0.00   0.00   0.00   0.00   -458.00   -458.00
  VERIZON CALIFORNIA   0.00   0.00   0.00   0.00   20,114.94   20,114.94
                            
                            
                            
                            
                            
                            
   
 
 
 
 
 
TOTAL   63.35   0.00   0.00   0.00   247,199.86   247,263.21
   
 
 
 
 
 

Notes:

(1)  Lease

Page 1 of 1

In re Etoys, Inc.   Case No. 01-00706(MFW)

MOR-1 ATTACHMENT
OTHER RECEIPTS
December 2001

Payer
   Description
   Amount
   Date
Diners Club   Other Income     49,218.76   12/4/01
Verizon   Refund     11.29   12/10/01
Verizon   Refund     1,419.29   12/10/02
Verizon   Refund     86.96   12/10/01
Cigna Health   Refund     130,675.89   12/11/01
USA TODAY   Refund     3.66   12/26/01
State Of Michigan   Refund     668.66   12/26/01
United States Treasury   Refund     2,250.23   12/26/01
United States Treasury   Refund     1,006.50   12/26/01
IGOE & Company Inc.   COBRA Refund     11,260.74   12/26/01
IGOE & Company Inc.   COBRA Refund     1,689.91   12/26/01
Verizon   Refund     179.16   12/26/01
Verizon   Refund     1,148.29   12/26/01
       
   
Total       $ 199,619.34    
       
   

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

In re: eToys Distribution LLC   Case No. 01-00707 (MFW)
Reporting Period: 12/01/01-12/31/01

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
 
    1/17/02
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. 01-00707 (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.

In re: eToys Distribution LLC   Case No. 01-00707 (MFW)
Debtor   Reporting Period: 12/01/01-12/31/01

Notes to Unaudited Financial Statements (MOR - 2, 3)
As of December 31, 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. As assets have been sold through this liquidation process, the Debtor has written off the difference between book value and liquidation value on the financial statements. The remaining assets are still being carried at book value, however, a reserve account has been set up to reflect the estimated loss (see footnote 2).

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 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.

NOTE 3 -
 
Contingent Liabilities - Administrative Claims

 
 
On December 7, 2001, the bar date for the filing of administrative claims passed. Prior to the bar date, administrative claims totaling approximately $1.565,000 were filed against eToys, Inc. The Company is undertaking a review and reconciliation of the administrative claims filed, a process that has not yet been completed. Based on a preliminary review of the administrative claims filed, it appears that some actually duplicate pre-petition unsecured claims and some involve lease rejection claims, which would not be properly classified as Administrative Claims. Until the reconciliation process is complete, and claims objections heard by the Court, the Debtor can make no representations or provide any assurances regarding the Administrative Claims, which would be paid ahead of any distribution to pre-petition creditors.

NOTE 4 -
 
Contingent Liabilities - Operating Lease Claims

 
 
Numerous claims have been received from lessors who are creditors under operating leases and capital leases. The amounts of the liabilities under the operating leases have not been determined and have not been recognized on the Company's financial statements.
In re: eToys Distribution LLC   Case No. 01-00707 MFW
  Debtor   Reporting Period 12/01/01-12/31/01

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

   BofA
Acct No.
1459-2-08325
   Union Bank
Acct No.
2180039778
    
    
  
 
   Pre-petition
    
   Total
  
CASH BEGINNING OF MONTH   0.00   0.00   816.79       816.79  

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 MM                   0.00  
TRANSFERS FROM PRE-PETITION                   0.00  
TRANSFERS FROM eTOYS INC DIP           40,000.00       40,000.00  
INTEREST                   0.00  
TOTAL RECEIPTS   0.00   0.00   40,000.00       40,000.00  

DISBURSEMENTS
 
 
 
 
 
 
 
 
 
 
 
NET PAYROLL                   0.00  
PAYROLL TAXES                   0.00  
SALES,USE,& OTHER TAXES                   0.00  
INVENTORY PURCHASES                   0.00  
SECURED/RENT/LEASES           (20,000.00 )     (20,000.00 )
INSURANCE                   0.00  
ADMINISTRATIVE           (20,279.00 )     (20,279.00 )
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   0.00   (40,279.00 )     (40,279.00 )
NET CASH FLOW   0.00   0.00   (279.00 )     (279.00 )
CASH END OF MONTH   0.00   0.00   537.79       537.79  

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

    THE FOLLOWING SECTION MUST BE COMPLETED

TOTAL DISBURSEMENTS     40,279.00
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     40,279.00

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   Case No. 01-00707 (MFW)
  Debtor   Reporting Period 12/01/01-12/31/01

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   $ 537.79   $ -        
BANK BALANCE   $ 2,271.79   $ -        
(+) DEPOSITS IN TRANSIT (attach list)     -     0.00        
(-) OUTSTANDING CHECKS (attach list)     (1,734.00 )   0.00        
OTHER (attach list)                    
ADJUSTED BANK BALANCE   $ 537.79   $ -        

* 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
    30254     1,734.00   None                
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
Total Outstanding Checks       $ 1,734.00                        

OTHER
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   
   
In re: eToys Distribution LLC   Case No. 01-00707 (MFW)

Cash Disbursements
December 2001

Date
   Check
Number
   Name
   Amount
12/10/2001   30251   MARK VII TRANSPORTATION CO.     14,220.00
12/13/2001   30252   SHAPIRO LIVING TRUST     20,000.00
12/13/2001   30253   SHAPIRO LIVING TRUST     3,085.53
12/17/2001   30254   MOVING & ASSOCIATED SERVICES, INC.     1,734.00
12/19/2001   30255   SHAPIRO LIVING TRUST     226.49
12/26/2001   30256   SHAPIRO LIVING TRUST     1,012.98
           
        TOTAL DISBURSEMENTS   $ 40,279.00
           
In re: eToys Distribution LLC   Case No. 01-00707 (MFW)

Statement of Operations (MOR-2)
March 7 through December 31, 2001 and One Month Ended December 31, 2001
UNAUDITED

 
   Mar 7 - Dec 31, '01
   Dec '01
  Ordinary Income/Expense        
      Income        
        Liquidation Proceeds        
          Cancellation of Debt   11,554.62   0.00
          Loss on Disposal of Assets   -38,616,946.27   0.00
          Loss on Settlement of Claims   -522,448.27   -522,448.27
          Other Income   838.20   0.00
          Refunds Received   3,330.35   0.00
          Liquidation Proceeds - Other   2,773,273.34   60,475.18
   
 
        Total Liquidation Proceeds   -36,350,398.03   -461,973.09
   
 
      Total Income   -36,350,398.03   -461,973.09
      Cost of Goods Sold        
        Cost of Goods Sold   2,044,470.55   0.00
   
 
      Total COGS   2,044,470.55   0.00
   
 
  Gross Profit   -38,394,868.58   -461,973.09
      Expense        
        Automobile Expense   715.53   0.00
        Dues and Subscriptions   19.50   -3.06
        Equipment Leases   239,682.63   0.00
        Equipment Rental   9,159.98   0.00
        Freight   272,231.32   -2,345.50
        Miscellaneous   1,279.71   0.00
        Moving Expense   12,050.00   0.00
        Outside Services   5,028.60   347.40
        Payroll taxes   106,624.88   83.66
        Postage and Delivery   11,448.41   0.00
        Printing and Reproduction   33.44   0.00
        Rent   2,367,312.81   75,006.31
        Repairs        
          Computer Repairs   14,599.28   0.00
          Equipment Repairs   3,855.91   0.00
   
 
        Total Repairs   18,455.19   0.00
        Salaries & Wages        
          Vacation Expense   31,316.57   0.00
          Salaries & Wages - Other   1,345,622.66   -6,630.67
   
 
        Total Salaries & Wages   1,376,939.23   -6,630.67
        Security   131,520.76   1,411.52
        Supplies        
          Office   162.40   0.00
          Supplies - Other   33,417.58   0.00
   
 
        Total Supplies   33,579.98   0.00
        Taxes        
          Property   107,181.66   107,181.66
          Taxes - Other   11,074.49   -668.66
   
 
        Total Taxes   118,256.15   106,513.00
        Telephone        
          Communications Expense   2,356.81   -660.97
    See accompanying Note to Financial Statements   Page 1 of 2
In re: eToys Distribution LLC   Case No. 01-00707 (MFW)

Statement of Operations (MOR-2)
March 7 through December 31, 2001 and One Month Ended December 31, 2001
UNAUDITED

          Telephone - Other   46,328.81   -4,442.93
   
 
        Total Telephone   48,685.62   -5,103.90
        Temporary Help   116,327.26   0.00
  Ordinary Income/Expense        
        Travel & Ent        
          Travel   2,178.82   0.00
          Travel & Ent - Other   454.86   0.00
   
 
        Total Travel & Ent   2,633.68   0.00
        Utilities        
          Gas and Electric   258,657.06   2,347.82
          Water & Trash   7,484.35   637.80
          Utilities - Other   21,514.77   -2,949.63
   
 
        Total Utilities   287,656.18   35.99
   
 
      Total Expense   5,159,640.86   169,314.75
   
 
  Net Ordinary Income   -43,554,509.44   -631,287.84
  Other Income/Expense        
    Other Income        
      Interest Income   5,874.04   139.55
      Other Income   734.65   0.00
   
 
    Total Other Income   6,608.69   139.55
    Other Expense        
      Reorganization Expenses        
        Other Reorganization Expenses        
          Post-Petition Payments        
            Asset Management   64,830.80   0.00
            CLI Liquidation Expenses   196,809.13   21,734.00
   
 
          Total Post-Petition Payments   261,639.93   21,734.00
          Pre-Petition Payments        
            Employee Reimbursements   7,780.08   0.00
            Exp Charged - Sec Dep   1,052,398.00   0.00
            Other Critical Vendors   27,523.51   0.00
            Sales & Other Taxes   -2,110.68   -2,110.68
   
 
          Total Pre-Petition Payments   1,085,590.91   -2,110.68
          Provision for Restructuring Chg   54,251,000.00   0.00
   
 
        Total Other Reorganization Expenses   55,598,230.84   19,623.32
        U.S. Trustees Fees   12,500.00   0.00
   
 
      Total Reorganization Expenses   55,610,730.84   19,623.32
   
 
    Total Other Expense   55,610,730.84   19,623.32
   
 
  Net Other Income   -55,604,122.15   -19,483.77
   
 
Net Loss   -99,158,631.59   -650,771.61
   
 
    See accompanying Note to Financial Statements   Page 2 of 2
 
    
In re: eToys Distribution LLC   Case No. 01-00707 (MFW)

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

 
   Dec 31, '01
ASSETS    
  Current Assets    
    Checking/Savings    
      102000 - UBOC DIP ACCOUNT   537.79
   
    Total Checking/Savings   537.79
    Other Current Assets    
      Other Liquidated Debts    
          122500 - Employee Receivables   10,027.92
          129000 - A/R Other   124,553.82
          155000 - A/P Debit Balances   283,821.61
   
      Total Other Liquidated Debts   418,403.35
   
    Total Other Current Assets   418,403.35
   
  Total Current Assets   418,941.14
  Fixed Assets    
    Machinery & Equipment    
      201500 - Heavy Equipment   2,511,662.88
      204000 - Heavy Equip Cap Lse   10,069,284.07
      211500 - A/D Heavy Equipment   -80,326.78
      214000 - A/D Heavy Eq Cap Lse   -326,090.20
   
    Total Machinery & Equipment   12,174,529.97
    Office Equipment & Furnishings    
      202000 - Office Equipment   2,065,334.65
      202500 - Furniture & Fixtures   1,449,903.22
      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   11,404,412.98
    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   24,454,366.19
  Other Assets    
    I/C Due from eToys, Inc.   12,980,803.22
    Intangible Assets    
      244000 - Lease/Loan Orig Fee   241,894.63
      244500 - Accum Amort Loan Fees   -46,627.37
   
    Total Intangible Assets   195,267.26
    See accompanying notes to Financial Statements   Page 1 of 2
 
    
In re: eToys Distribution LLC   Case No. 01-00707 (MFW)

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

    Reserve for Restructuring   -36,847,062.54
    Security Deposits    
      241000 - Other Security Deposit   980,860.57
   
    Total Security Deposits   980,860.57
   
  Total Other Assets   -35,670,934.71
   
TOTAL ASSETS   2,183,175.84
   
LIABILITIES & EQUITY    
  Liabilities    
    Current Liabilities    
      Accounts Payable    
        Accounts Payable   71,760.87
   
      Total Accounts Payable   71,760.87
      Other Current Liabilities    
        Post-Petition Liabilities    
          ESPP Liab   -301.32
          Other Payroll Withholdings   137.31
          Vacation Accrual   31,316.57
   
        Total Post-Petition Liabilities   31,152.56
   
      Total Other Current Liabilities   31,152.56
   
    Total Current Liabilities   102,913.43
    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
   
        Total Secured Claims   11,431,105.14
        Unsecured Claims    
          301000 - Accounts Payable   47,997,420.40
          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   113,753,595.05
   
      Total Liabs Subject to Compromise   127,851,289.74
   
    Total Long Term Liabilities   127,851,289.74
   
  Total Liabilities   127,954,203.17
   
  Total Equity   -125,771,027.33
   
TOTAL LIABILITIES & EQUITY   2,183,175.84
   
    See accompanying notes to Financial Statements   Page 2 of 2
In re: eToys Distribution LLC   Case No. 01-00707 (MFW)
  Debtor   Reporting Period: 12/01/01-12/31/01

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   0.00   1,341.86   1,341.86   December 7 & 14, 2001   Note 1   0.00
FICA-Employee   0.00   83.66   83.66   December 7 & 14, 2001   Note 1   0.00
FICA-Employer   0.00   83.66   83.66   December 7 & 14, 2001   Note 1   0.00
Tax Rate Adjustment   0.00   0.00   0.00           0.00
Unemployment   0.00   0.00   0.00           0.00
Income   0.00   0.00               0.00
Other:   0.00   0.00               0.00
  Total Federal Taxes   0.00   1,509.18   1,509.18           0.00
STATE AND LOCAL                        
Withholding   0.00   391.52   391.52   December 7 & 14, 2001   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   0.00   0.00           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   391.52   391.52           0.00

Total taxes
 
0.00
 
1,900.70
 
1,900.70
 
 
 
 
 
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   -   102.99   -   -   71,657.88   71,760.87  
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                       102,913.43  

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

Debtor has adequate funds to pay post-petition obligations. However, payments to some vendors have been delayed
pending resolution of disputed balance and adjudication of motions for allowance of administrative claims.

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

In re: eToys Distribution LLC   Case No. 01-00707 (MFW)
  Debtor   12/01/01-12/31/01

MOR-5
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

Accounts Receivable Reconciliation
   Amount
Total Accounts Receivable at the beginning of the reporting period   $ 298,484.57
(+) Amounts billed during the period   $ 119,918.78
(-) Amounts collected during the period (Note 1)      
Total Accounts Receivable at the end of the reporting period   $ 418,403.35

Accounts Receivable Aging
 
Amount
0-30 days old   $ 119,918.78
31-60 days old      
61-90 days old   $ -
91 + days old   $ 298,484.57
Total Accounts Receivable   $ 418,403.35
Amount considered uncollectible (Bad Debt)      
Accounts Receivable (Net)   $ 418,403.35

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    

Note 1 - Accounts receivable amounts collected during December 2001 were deposited
in a bank account of eToys, Inc. (Case No. 01-00706) and, accordingly, are
reflected on that Debtor's MOR-1 Schedule of Cash Receipts and Disbursements.
In re: eToys Distribution LLC   Case No. 01-00707 (MFW)

eToys Distribution LLC
Accounts Payable Aging Report
As of December 31, 2001

 
   Current
   1-30
   31-60
   61-90
   > 90
   TOTAL
  HOMESTEAD MATERIALS HANDLING   0.00   0.00   0.00   0.00   3,018.89 (1) 3,018.89
  LEASING TECHNOLOGIES INT'L, INC.   0.00   0.00   0.00   0.00   39,190.00 (1) 39,190.00
  RAYMOND LEASING CORPORTATION   0.00   0.00   0.00   0.00   27,958.79 (1) 27,958.79
  SHAPIRO LIVING TRUST   0.00   102.99   0.00   0.00   0.00   102.99
  XEROX CORPORATION   0.00   0.00   0.00   0.00   1,490.20 (1) 1,490.20
   
 
 
 
 
 
TOTAL   0.00   102.99   0.00   0.00   71,657.88   71,760.87
   
 
 
 
 
 

Notes:

(1)
Lease - In the > 90 day column, $71,657.88 represents post-petition lease payments which are the subject of ongoing negotiations and motions for allowance of administrative claims.

UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE

 
    
In re: eKids, Inc.   Case No. 01-00708 (MFW)
Reporting Period: 12/01/01-12/31/01

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

 

 

 

1/17/02
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 12/01/01-12/31/01

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. 01-00708 (MFW)
              Debtor   Reporting Period 12/01/01-12/31/01

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.   Case No. 01-00708 (MFW)
              Debtor   Reporting Period 12/01/01-12/31/01
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            
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)   $     $  
In re: eKids, Inc.   Case No. 01-00708 (MFW)
              Debtor   Reporting Period 12/01/01-12/31/01

MOR-2 continued
STATEMENT OF OPERATIONS

NOT APPLICABLE

BREAKDOWN OF OTHER CATEGORY
   MONTH
   FILING TO DATE
            
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.   Case No. 01-00708 (MFW)
  Debtor   Reporting Period 12/01/01-12/31/01
    MOR-3
BALANCE SHEET		   NOT APPLICABLE
 
  

ASSETS
   MONTH
   MONTH
    NOT APPLICABLE    
Cash (Unrestricted)        
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 12/01/01-12/31/01

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.   Case No. 01-00708 (MFW)
  Debtor   Reporting Period 12/01/01-12/31/01

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
withheld 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                        

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: eKids, Inc.   Case No. 01-00708 (MFW)
      Reporting Period 12/01/01-12/31/01


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. 01-00709 (MFW)
        Reporting Period: 12/01/01-12/31/01

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
 
 
 
1/17/02
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: PMJ Corporation   Case No. 01-0709 (MFW)
  Debtor   Reporting Period 12/01/01-12/31/01

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: PMJ Corporation   Case No. 01-00709 (MFW)              
                    Debtor   Reporting Period 12/01/01-12/31/01

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
                                 
                                 
                                 
                                 
                                 
CHECKS OUTSTANDING
   Ck#
   Amount
   Ck#
   Amount
   Ck#
   Amount
   Ck#
   Amount
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
Total Outstanding Checks       $ —                        

OTHER

In re: PMJ Corporation   Case No. 01-00709 (MFW)
              Debtor   Reporting Period 12/01/01-12/31/01
    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

REVENUES

   MONTH
   FILING TO DATE
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            
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)   $     $  
In re: PMJ Corporation   Case No. 01-00709 (MFW)
              Debtor   Reporting Period 12/01/01-12/31/01

MOR-2 continued
STATEMENT OF OPERATIONS

NOT APPLICABLE

BREAKDOWN OF OTHER CATEGORY
   MONTH
   FILING TO DATE
            
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 but for the Bankruptcy proceeding, should be reported as a reorganization item.

In re: PMJ Corporation   Case No. 01-00709 (MFW)
    Debtor   Reporting Period 12/01/01-12/31/01
    MOR-3    
    BALANCE SHEET   NOT APPLICABLE                  
ASSETS
   MONTH
   MONTH
    NOT APPLICABLE    
Cash (Unrestricted)        
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: PMJ Corporation   Case No. 01-00709 (MFW)
    Debtor   Reporting Period 12/01/01-12/31/01

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.

PMJ Corporation, 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: PMJ Corporation   Case No. 01-00709 (MFW)
    Debtor   Reporting Period 12/01/01-12/31/01

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                        

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: PMJ Corporation   Case No. 01-00709 (MFW)
Reporting Period: 12/01/01 - 12/31/01

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.            


QuickLinks

MONTHLY OPERATING REPORT
SUMMARY OF UNPAID POSTPETITION DEBTS
MOR-5 ACCOUNTS RECEIVABLE RECONCILIATION AND AGING (NOT APPLICABLE)