EX-99.2 3 fastnet_8kex99-2.txt EXHIBIT 99.2 In re: Fn Estate, Inc. Debtors. Case No. 03-23143 Reporting Period: May, 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: May, 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: May, 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 * $ 3,341,033 $ 938,508 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- RECEIPTS: -------------------------------------------------------------------------------- Collection of Accounts Receivable 29,184 11,771,305 -------------------------------------------------------------------------------- Asset Sale Proceeds -- 5,905,707 -------------------------------------------------------------------------------- Other 379,882 5,961,658 -------------------------------------------------------------------------------- TOTAL RECEIPTS 409,066 23,638,671 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- DISBURSEMENTS: -------------------------------------------------------------------------------- Payroll and Related Benefits 66 5,523,466 -------------------------------------------------------------------------------- Travel and Entertainment 933 81,029 -------------------------------------------------------------------------------- Insurance 28,725 215,780 -------------------------------------------------------------------------------- Utilities -- 9,633,543 -------------------------------------------------------------------------------- Occupancy -- 705,021 -------------------------------------------------------------------------------- Other (1,870) 537 -------------------------------------------------------------------------------- G&A 615,356 5,310,914 -------------------------------------------------------------------------------- TOTAL DISBURSEMENTS 643,210 21,470,290 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- NET CASH FLOW (234,144) 2,168,381 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- CASH - END OF MONTH $ 3,106,889 $ 3,106,889 -------------------------------------------------------------------------------- * Ending Cash includes $314,568 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 $ 643,210 -------------------------------------------------------------------------------- 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 $ 643,210 -------------------------------------------------------------------------------- Page 3 of 8 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: May, 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 $ 2,773,137.55 $ -- $ 2,499.46 $ 314,567.85 $ 1,071.96 $15,096.20 $ 515.59 $ 3,106,888.61 BANK BALANCE $ 2,891,340.72 $ 2,499.46 $ 314,567.85 $ 1,071.96 $15,096.20 $ 515.59 $ 3,225,091.78 Plus: Deposits In Transit -- Less: Outstanding Checks (118,203.17) (118,203.17) Other: Adjustment -- ----------------------------------------------------------------------------------------------------------------- BALANCE PER BOOKS $ 2,773,137.55 $ -- $ 2,499.46 $ 314,567.85 $ 1,071.96 $15,096.20 $ 515.59 $ 3,106,888.61 ================================================================================================================= * Bank Account HSBC represents Restricted cash related to Applied Theory Estate. EXPLANATIONS: ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ Page 4 of 8
UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: May, 2004 FN Estate, Inc. STATEMENT OF OPERATIONS ($ IN REAL NUMBERS) -------------------------------------------------------------------------------- CUMULATIVE MAY FILING TO DATE -------------------------------------------------------------------------------- Net Revenues $ 101,905 $ 14,842,177 Cost of Sales 90,804 10,871,500 ----------------------------- GROSS MARGIN $ 11,102 $ 3,970,677 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES: Marketing & Selling Expenses $ -- $ 932,600 G&A Payroll Expenses 64,785 3,809,754 Occupancy Expenses 15,678 397,572 Bankruptcy Expenses 171,515 2,661,878 General and Administrative Expenses 19,169 3,634,053 Depreciation and Amortization -- 2,594,695 ----------------------------- TOTAL SG&A EXPENSES $ 271,147 $ 14,030,552 ----------------------------- OPERATING INCOME (LOSS) $ (260,046) $(10,059,875) OTHER INCOME (EXPENSE): Interest Expense $ -- $ (3,720,371) Interest Income 2,098 26,814) Other 8,442 6,480,598 Impairment/Restructuring Charges -- 17,053,482 ----------------------------- TOTAL OTHER INCOME (EXPENSE) $ 10,540 $(14,266,441) ----------------------------- NET INCOME INCLUDING REORGANIZATION ITEMS $ (249,505) $(24,326,316) ================================================================================ REORGANIZATION ITEMS: Professional Fees $ 171,515 $ 2,650,628 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 $ 171,515 $ 2,661,878 Page 5 of 8 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: May, 2004 FN Estate, Inc. BALANCE SHEET ($ IN REAL NUMBERS) -------------------------------------------------------------------------------- BOOK VALUE AT END OF CURRENT ASSETS REPORTING MONTH -------------------------------------------------------------------------------- CURRENT ASSETS Cash & Cash Equivalents $ 2,792,321 Restricted Cash 314,568 Accounts Receivable 3,933,022 Less: Allowance for doubtful accounts 2,570,059 ------------- NET ACCOUNTS RECEIVABLE 1,362,963 Prepaid and Other Current Assets 305,908 Notes and Other Receivables - US Lec 1,372,148 Property and Equipment, net 16,483 Other Assets 1,184,809 ------------- TOTAL ASSETS $ 7,349,200 ================================================================================ -------------------------------------------------------------------------------- BOOK VALUE AT END OF CURRENT LIABILITIES & STOCKHOLDERS' EQUITY REPORTING MONTH -------------------------------------------------------------------------------- LIABILITIES NOT SUBJECT TO COMPROMISE: Accounts Payable $ 457,226 Other Accrued Liabilities 3,411,770 Deferred Revenue 698,711 ------------- 4,567,706 Other Liabilities 13,662 ------------- TOTAL POSTPETITION LIABILITIES 4,581,368 DUE TO RELATED COMPANIES 12,088,214 LIABILITIES SUBJECT TO COMPROMISE: Secured Debt 84,116 Priority Debt 279,800 Unsecured Debt 15,929,035 ------------- TOTAL PRE-PETITION LIABILITIES 16,292,951 STOCKHOLDERS' EQUITY: Common and Preferred Stock 78,434,584 Note Receivable (75,880) Accumulated deficit (102,544,786) Treasury Cost (1,427,252) ------------- TOTAL SHAREHOLDERS EQUITY (25,613,334) ------------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 7,349,200 ================================================================================ Page 6 of 8 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: May, 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 $ -- $ 8,084.92 $ 8,084.92 5/03 & 5/20/04 EFT-ADP $ -- ----------------------------------------------------------------------------------------------------------- FICA - Employee -- 2,308.22 2,308.22 5/03 & 5/20/04 EFT-ADP -- ----------------------------------------------------------------------------------------------------------- FICA - Employer 3,714.90 3,369.51 2,308.20 5/03 & 5/20/04 EFT-ADP 4,776.21 ----------------------------------------------------------------------------------------------------------- Unemployment 7.69 6.14 13.83 5/03 & 5/20/04 EFT-ADP -- ----------------------------------------------------------------------------------------------------------- Income -- -- ----------------------------------------------------------------------------------------------------------- Other -- -- ----------------------------------------------------------------------------------------------------------- TOTAL FEDERAL TAXES $ 3,722.59 $ 13,768.79 $ 12,715.17 $ 4,776.21 =========================================================================================================== STATE AND LOCAL ----------------------------------------------------------------------------------------------------------- Withholding $ (282.64) $ 2,049.66 $ 2,049.66 5/03 & 5/20/04 EFT $ (282.64) ----------------------------------------------------------------------------------------------------------- Sales (232.88) -- -- (232.88) ----------------------------------------------------------------------------------------------------------- Excise -- -- ----------------------------------------------------------------------------------------------------------- Unemployment and Disability 94.56 211.50 218.88 5/03 & 5/20/04 EFT 87.18 ----------------------------------------------------------------------------------------------------------- Real Property -- -- ----------------------------------------------------------------------------------------------------------- Personal Property -- -- ----------------------------------------------------------------------------------------------------------- Other: OPT 10.00 -- -- 10.00 ----------------------------------------------------------------------------------------------------------- State Corp -- -- ----------------------------------------------------------------------------------------------------------- Local -- -- ----------------------------------------------------------------------------------------------------------- TOTAL STATE AND LOCAL $ (410.96) $ 2,261.16 $ 2,268.54 $ (418.34) ----------------------------------------------------------------------------------------------------------- TOTAL TAXES $ 3,311.63 $ 16,029.95 $ 14,983.71 $ 4,357.87 =========================================================================================================== 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 $195,374.15 $ 54,132.02 $ 99,288.17 $ 43,585.86 $392,380.20 --------------------------------------------------------------------------------------------------------------- Wages Payable 65,590.87 65,590.87 --------------------------------------------------------------------------------------------------------------- Taxes Payable 4,357.84 4,357.84 --------------------------------------------------------------------------------------------------------------- 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 $265,672.86 $ 54,132.02 $99,288.17 $108,081.41 $527,174.46 =============================================================================================================== * "INSIDER" IS DEFINED IN 11 U.S.C. SECTION 101(31) Explain how and when the Debtor intends to pay any past-due postpetition debts. -------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------- Page 7 of 8
UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: May, 2004 FN Estate, Inc. ACCOUNTS RECEIVABLE RECONCILIATION AND AGING ($ IN REAL NUMBERS) -------------------------------------------------------------------------------- ACCOUNTS RECEIVABLE RECONCILIATION AMOUNT ------------------------------------------------------------------ ------------ Total Accounts Receivable at the beginning of the reporting period $ 3,911,577 + Amounts billed during the period 39,388 - Amounts collected during the period (17,982) + Adjustments (Credit Memos, Debit Memos, journal entries) 39 + Other Adjustments -- ------------------------------------------------------------------ ------------ TOTAL ACCOUNTS RECEIVABLE AT THE END OF THE REPORTING PERIOD $ 3,933,022 ================================================================================ ------------------------------------------------------------------ ------------ ACCOUNTS RECEIVABLE AGING AMOUNT ------------------------------------------------------------------ ------------ 0 - 30 days old $ 121,603 31 - 60 days old 96,829 61 - 90 days old 167,580 91+ days old 3,547,011 ------------------------------------------------------------------ ------------ TOTAL ACCOUNTS RECEIVABLE 3,933,022 Amount considered uncollectable (Bad Debt) (2,570,059) ------------------------------------------------------------------ ------------ ACCOUNTS RECEIVABLE (NET) (EXCLUDING ACCRUALS) $ 1,362,963 ================================================================================ 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