EX-99.1 2 fastnet_8kex99-1.txt EXHIBIT 99.1 In re: FN ESTATE, INC. Debtors. Case No. 03-23143 Reporting Period: April, 2004 Privileged and Confidential Information May Be Included UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: April, 2004 FN Estate, Inc. MONTHLY OPERATING REPORT ($ IN REAL NUMBERS) ------------------------------------------------------------------------------------------------------------------------------------ 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.
------------------------------------------------------------------------------------------------------------------------------------ DOCUMENT EXPLANATION REQUIRED DOCUMENTS FORM NO. ATTACHED 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 ------------------------------------------------------------------------------------------------------------------------------------ Copies of tax returns filed during reporting period X ------------------------------------------------------------------------------------------------------------------------------------ SUMMARY OF UNPAID POST PETITION 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/ R. Barry Borden Aug 18, 2004 --------------------------------------------------------------------------- ------------------------------------- Signature of Authorized Individual* Date R. Barry Borden Chairman and President --------------------------------------------------------------------------- ------------------------------------- Printed Name of Authorized Individual Title of Authorized Individual
Page 2 of 8 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: April, 2004 FN Estate, Inc. SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS ($ IN REAL NUMBERS) -------------------------------------------------------------------------------- CURRENT CUMULATIVE MONTH FILING TO DATE ACTUAL ACTUAL -------------------------------------------------------------------------------- CASH - BEGINNING OF MONTH * $ 3,404,274 $ 938,508 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- RECEIPTS: -------------------------------------------------------------------------------- Collection of Accounts Receivable 29,184 11,742,121 -------------------------------------------------------------------------------- Asset Sale Proceeds -- 5,905,707 -------------------------------------------------------------------------------- Other 620,556 5,581,776 -------------------------------------------------------------------------------- TOTAL RECEIPTS 649,740 23,229,605 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- DISBURSEMENTS: -------------------------------------------------------------------------------- Payroll and Related Benefits 60,263 5,523,400 -------------------------------------------------------------------------------- Travel and Entertainment 2,873 80,096 -------------------------------------------------------------------------------- Insurance 24,080 187,055 -------------------------------------------------------------------------------- Utilities 513,790 9,633,543 -------------------------------------------------------------------------------- Occupancy 29,570 705,021 -------------------------------------------------------------------------------- Other 2,407 2,407 -------------------------------------------------------------------------------- G&A 79,999 4,695,558 -------------------------------------------------------------------------------- TOTAL DISBURSEMENTS 712,982 20,827,080 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- NET CASH FLOW (63,242) 2,402,525 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- CASH - END OF MONTH $ 3,341,033 $ 3,341,033 -------------------------------------------------------------------------------- * Ending Cash includes $314,708 of restricted cash related to Applied Theory Estate, (HSBC account). THE FOLLOWING SECTION MUST BE COMPLETED -------------------------------------------------------------------------------- DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES (FROM CURRENT MONTH COLUMN) -------------------------------------------------------------------------------- TOTAL DISBURSEMENTS $ 712,982 -------------------------------------------------------------------------------- Less: Transfers to Debtor In Possession Accounts -------------------------------------------------------------------------------- Plus: Estate Disbursements Made by Outside Sources (i.e. from escrow accounts) -------------------------------------------------------------------------------- TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES $ 712,982 -------------------------------------------------------------------------------- Page 3 of 8 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: April, 2004
FN Estate, Inc. BANK RECONCILIATION ($ IN REAL NUMBERS) -------------------------------------------------------------------------------------------------------------------------- BANK ACCOUNTS -------------------------------------------------------------------------------------------------------------------------- WACHOVIA WACHOVIA OPERATING CREDIT SILICON CORP PETTY DIP CARD VALLEY HSBC * DEBIT HUDSON CASH TOTAL ------------------------------------------------------------------------------------------------------- BALANCE PER BOOKS $3,007,158.09 $ -- $2,481.91 $314,602.85 $1,120.25 $15,154.02 $515.59 $3,341,032.71 BANK BALANCE $3,219,150.77 $ -- $2,481.91 $314,602.85 $1,120.25 $15,004.02 $515.59 $3,552,875.39 Plus: Deposits In Transit -- Less: Outstanding Checks (211,992.68) (211,992.68) Other: Adjustment 150.00 150.00 ------------------------------------------------------------------------------------------------------- BALANCE PER BOOKS $3,007,158.09 $ -- $2,481.91 $314,602.85 $1,120.25 $15,154.02 $515.59 $3,341,032.71 ======================================================================================================= * Bank Account HSBC represents Restricted cash related to Applied Theory Estate. EXPLANATIONS: ------------------------------------------------------------------------------------------------------------------------------------ $150.00 Hudson adjustment due to bank service charge made in error; will be refunded in May. ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ Page 4 of 8
UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: April, 2004 FN Estate, Inc. STATEMENT OF OPERATIONS ($ IN REAL NUMBERS) -------------------------------------------------------------------------------- CUMULATIVE APRIL FILING TO DATE -------------------------------------------------------------------------------- Net Revenues $ 120,214 $ 14,740,271 Cost of Sales 132,240 10,780,696 ----------------------------- GROSS MARGIN $ (12,026) $ 3,959,575 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES: Marketing & Selling Expenses $ -- $ 932,600 G&A Payroll Expenses 71,945 3,744,969 Occupancy Expenses 12,714 381,894 Bankruptcy Expenses 176,724 2,490,363 General and Administrative Expenses 26,176 3,614,884 Depreciation and Amortization -- 2,594,695 ----------------------------- TOTAL SG&A EXPENSES $ 287,559 $ 13,759,404 ----------------------------- OPERATING INCOME (LOSS) $ (299,585) $ (9,799,829) OTHER INCOME (EXPENSE): Interest Expense $ -- $ 3,720,371 Interest Income 2,020 (24,716) Other 119,364 (6,472,156) Impairment / Restructuring Charges -- 17,053,482 ----------------------------- TOTAL OTHER INCOME (EXPENSE) $ 121,384 $ 14,276,981 ----------------------------- NET INCOME INCLUDING REORGANIZATION ITEMS $ (178,201) $ 4,477,152 ================================================================================ REORGANIZATION ITEMS: Professional Fees $ 176,724 $ 2,479,113 U.S. Trustee Quarterly Fee -- 11,250 Interest Earned on Accumulated Cash from Ch.11 -- -- Gain (Loss) From Sale of Equipment -- -- Gain on pre-petition real estate valuation -- -- ----------------------------- TOTAL REORGANIZATION ITEMS $ 176,724 $ 2,490,363 Page 5 of 8 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: April, 2004 FN Estate, Inc. BALANCE SHEET ($ IN REAL NUMBERS) -------------------------------------------------------------------------------- BOOK VALUE AT END OF CURRENT ASSETS REPORTING MONTH -------------------------------------------------------------------------------- CURRENT ASSETS Cash & Cash Equivalents $ 3,026,430 Restricted Cash 314,603 Accounts Receivable 3,911,577 Less: Allowance for doubtful accounts 2,570,770 -------------- NET ACCOUNTS RECEIVABLE 1,340,807 Prepaid and Other Current Assets 446,234 Notes and Other Receivables - US Lec 1,485,519 Property and Equipment, net 23,183 Other Assets 1,184,809 -------------- TOTAL ASSETS $ 7,821,584 ================================================================================ -------------------------------------------------------------------------------- BOOK VALUE AT END OF CURRENT LIABILITIES & STOCKHOLDERS' EQUITY REPORTING MONTH -------------------------------------------------------------------------------- LIABILITIES NOT SUBJECT TO COMPROMISE: Accounts Payable $ 489,181 Other Accrued Liabilities 3,572,817 Deferred Revenue 763,756 -------------- 4,825,754 Other Liabilities 13,662 -------------- TOTAL POSTPETITION LIABILITIES 4,839,416 DUE TO RELATED COMPANIES 12,088,214 LIABILITIES SUBJECT TO COMPROMISE: Secured Debt 85,513 Priority Debt 279,800 Unsecured Debt 15,892,469 -------------- TOTAL PRE-PETITION LIABILITIES 16,257,783 STOCKHOLDERS' EQUITY: Common and Preferred Stock 78,434,584 Note Receivable (75,880) Accumulated deficit (102,295,281) Treasury Cost (1,427,252) -------------- TOTAL SHAREHOLDERS EQUITY (25,363,829) -------------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 7,821,584 ================================================================================ Page 6 of 8 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: April, 2004
FN Estate, Inc. STATUS OF POSTPETITION TAXES ($ IN REAL NUMBERS) ----------------------------------------------------------------------------------------------------------- BEGINNING AMOUNT TAX WITHHELD AMOUNT CHECK NO. ENDING TAX LIABILITY OR ACCRUED PAID DATE PAID OR EFT LIABILITY ----------------------------------------------------------------------------------------------------------- FEDERAL =========================================================================================================== Withholding $ -- $ 9,633.55 $ 9,633.55 4/08,4/22/04 EFT-ADP $ -- ----------------------------------------------------------------------------------------------------------- FICA - Employee -- 3,314.32 3,314.32 4/08,4/22/04 EFT-ADP -- ----------------------------------------------------------------------------------------------------------- FICA - Employer 2,816.41 4,212.82 3,314.33 4/08,4/22/04 EFT-ADP 3,714.90 ----------------------------------------------------------------------------------------------------------- Unemployment 6.40 73.00 71.71 4/08,4/22/04 EFT-ADP 7.69 ----------------------------------------------------------------------------------------------------------- Income -- -- ----------------------------------------------------------------------------------------------------------- Other: -- -- ----------------------------------------------------------------------------------------------------------- TOTAL FEDERAL TAXES $ 2,822.81 $ 17,233.69 $ 16,333.91 $ 3,722.59 =========================================================================================================== STATE AND LOCAL ----------------------------------------------------------------------------------------------------------- Withholding $ (282.64) $ 2,592.15 $ 2,592.15 4/08,4/22/04 EFT $ (282.64) ----------------------------------------------------------------------------------------------------------- Sales (216.38) -- 16.50 4/08/04 37653 (232.88) ----------------------------------------------------------------------------------------------------------- Excise -- -- ----------------------------------------------------------------------------------------------------------- Unemployment and Disability 78.83 1,075.03 1,059.30 4/08,4/22/04 EFT 94.56 ----------------------------------------------------------------------------------------------------------- Real Property -- -- ----------------------------------------------------------------------------------------------------------- Personal Property -- -- ----------------------------------------------------------------------------------------------------------- 37650,37651 Other: OPT 290.00 10.00 290.00 4/08/04 37652 10.00 ----------------------------------------------------------------------------------------------------------- State Corp -- -- ----------------------------------------------------------------------------------------------------------- Local -- -- ----------------------------------------------------------------------------------------------------------- TOTAL STATE AND LOCAL $ (130.19) $ 3,677.18 $ 3,957.95 $ (410.96) ----------------------------------------------------------------------------------------------------------- TOTAL TAXES $ 2,692.62 $ 20,910.87 $ 20,291.86 $ 3,311.63 =========================================================================================================== SUMMARY OF UNPAID POST PETITION DEBTS ($ IN REAL NUMBERS) --------------------------------------------------------------------------------------------------------------- NUMBER OF DAYS PAST DUE ---------------------------------------------------- 0-30 31-60 61-90 OVER 90 TOTAL --------------------------------------------------------------------------------------------------------------- Accounts Payable $281,461.86 $ 85,231.08 $ 17,474.69 $40,168.26 $424,335.89 --------------------------------------------------------------------------------------------------------------- Wages Payable 55,460.19 55,460.19 --------------------------------------------------------------------------------------------------------------- Taxes Payable 3,311.60 3,311.60 --------------------------------------------------------------------------------------------------------------- Rent/Leases - Building 350.00 -- -- 3,137.96 3,487.96 --------------------------------------------------------------------------------------------------------------- Rent/Leases - Equipment -- -- -- 45,647.92 45,647.92 --------------------------------------------------------------------------------------------------------------- Secured Debt/Adequate Protection Payments -- --------------------------------------------------------------------------------------------------------------- Professional Fees $ 15,709.67 -- -- -- 15,709.67 --------------------------------------------------------------------------------------------------------------- Amounts Due to Insiders * -- --------------------------------------------------------------------------------------------------------------- Other: -- --------------------------------------------------------------------------------------------------------------- Other: -- --------------------------------------------------------------------------------------------------------------- TOTAL POSTPETITION DEBTS $356,293.32 $ 85,231.08 $ 17,474.69 $88,954.14 $547,953.23 =============================================================================================================== * "INSIDER" IS DEFINED IN 11 U.S.C. SECTION 101(31) Explain how and when the Debtor intends to pay any past-due postpetition debts. -------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------- Page 7 of 8
UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: April, 2004 FN Estate, Inc. ACCOUNTS RECEIVABLE RECONCILIATION AND AGING ($ IN REAL NUMBERS) -------------------------------------------------------------------------------- ACCOUNTS RECEIVABLE RECONCILIATION AMOUNT ------------------------------------------------------------------ ------------ Total Accounts Receivable at the beginning of the reporting period $ 3,878,927 + Amounts billed during the period 47,493 - Amounts collected during the period (19,889) + Adjustments (Credit Memos, Debit Memos, journal entries) 5,045 + Other Adjustments -- ------------------------------------------------------------------ ------------ TOTAL ACCOUNTS RECEIVABLE AT THE END OF THE REPORTING PERIOD $ 3,911,577 ================================================================================ ------------------------------------------------------------------ ------------ ACCOUNTS RECEIVABLE AGING AMOUNT ------------------------------------------------------------------ ------------ 0 - 30 days old $ 169,004 31 - 60 days old 167,861 61 - 90 days old 283,488 91+ days old 3,291,224 ------------------------------------------------------------------ ------------ TOTAL ACCOUNTS RECEIVABLE 3,911,577 Amount considered uncollectable (Bad Debt) (2,570,770) ------------------------------------------------------------------ ------------ ACCOUNTS RECEIVABLE (NET) (EXCLUDING ACCRUALS) $ 1,340,807 ------------------------------------------------------------------ ------------ DEBTOR QUESTIONNAIRE Please provide an explanation below for any yes answers. -------------------------------------------------------------------------------- MUST BE COMPLETED EACH MONTH YES NO ------------------------------------------------------- ----- ----- 1. Have any assets been sold or transferred outside the normal course of business this reporting period? X ------------------------------------------------------- ----- ----- 2. Have any funds been disbursed from any account other than a debtor in possession accounts this reporting period? X ------------------------------------------------------- ----- ----- 3. Have any prepetition taxes been paid during the reporting period? X ------------------------------------------------------- ----- ----- 4. Have all postpetition tax returns been timely filed? X ------------------------------------------------------- ----- ----- 5. Are any postpetition real estate taxes past due? X ------------------------------------------------------- ----- ----- 6. Are any postpetition state or federal income taxes past due? X ------------------------------------------------------- ----- ----- 7. Are any postpetition payroll taxes past due? X ------------------------------------------------------- ----- ----- 8. Are any other postpetition taxes past due? X ------------------------------------------------------- ----- ----- 9. Are any amounts owed to postpetition creditors past due? X ------------------------------------------------------- ----- ----- 10. Have any postpetition loans been received by the debtor from any party? X ------------------------------------------------------- ----- ----- 11. Have any payments been made on prepetition liabilities this reporting period? X ------------------------------------------------------- ----- ----- 12. Are any wage payments past due? X ------------------------------------------------------- ----- ----- 13. Are any postpetition receivable (accounts, notes, or loans) due from related parties? X ------------------------------------------------------- ----- ----- EXPLANATIONS: -------------------------------------------------------------------------------- 1. Assets were sold in transactions approved by the Bankruptcy Court. -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Page 8 of 8