EX-99.3 4 fastnet_8kex99-3.txt EXHIBIT 99.3 In re: Fn Estate, Inc. Debtors. Case No. 03-23143 Reporting Period: June, 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: June, 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: June, 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 * $ 3,106,889 $ 938,508 -------------------------------------------------- ------------ ------------ -------------------------------------------------- ------------ ------------ RECEIPTS: -------------------------------------------------- ------------ ------------ Collection of Accounts Receivable 40,657 11,811,962 -------------------------------------------------- ------------ ------------ Asset Sale Proceeds -- 5,905,707 -------------------------------------------------- ------------ ------------ Other 492,821 6,454,479 -------------------------------------------------- ------------ ------------ TOTAL RECEIPTS 533,478 24,172,149 -------------------------------------------------- ------------ ------------ -------------------------------------------------- ------------ ------------ DISBURSEMENTS: -------------------------------------------------- ------------ ------------ Payroll and Related Benefits 7,909 5,531,375 -------------------------------------------------- ------------ ------------ Travel and Entertainment 1,774 82,803 -------------------------------------------------- ------------ ------------ Insurance 5,000 220,780 -------------------------------------------------- ------------ ------------ Utilities -- 9,633,543 -------------------------------------------------- ------------ ------------ Occupancy 21,038 726,059 -------------------------------------------------- ------------ ------------ Other -- 537 -------------------------------------------------- ------------ ------------ G&A 1,022,523 6,333,437 -------------------------------------------------- ------------ ------------ TOTAL DISBURSEMENTS 1,058,244 22,528,534 -------------------------------------------------- ------------ ------------ -------------------------------------------------- ------------ ------------ NET CASH FLOW (524,766) 1,643,615 -------------------------------------------------- ------------ ------------ -------------------------------------------------- ------------ ------------ CASH - END OF MONTH $ 2,582,123 $ 2,582,123 -------------------------------------------------- ------------ ------------ * 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 $ 1,058,244 -------------------------------------------------------------------------------- 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 $ 1,058.244 -------------------------------------------------------------------------------- Page 3 of 8 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: June, 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 $ 2,248,402.89 $ -- $ 2,868.66 $ 314,532.85 $ 764.31 $15,038.80 $ 515.59 $ 2,582,122.92 BANK BALANCE $ 2,323,064.77 $ 2,868.66 $ 314,532.85 $ 764.31 $15,038.80 $ 515.59 $ 2,656,784.80 Plus: Deposits In Transit -- Less: Outstanding Checks (74,661.88) (74,661.88) Other: Adjustment ----------------------------------------------------------------------------------------------------------------- BALANCE PER BOOKS $ 2,248,402.89 $ -- $ 2,868.66 $ 314,532.85 $ 764.13 $15,038.80 $ 515.59 $ 2,582,122.92 ================================================================================================================= * 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: June, 2004 FN Estate, Inc. STATEMENT OF OPERATIONS ($ IN REAL NUMBERS) -------------------------------------------------------------------------------- CUMULATIVE JUNE FILING TO DATE -------------------------------------------------------------------------------- Net Revenues $ 40,716 $ 14,882,893 Cost of Sales 100,159 10,971,659 ----------------------------- GROSS MARGIN $ (59,443) $ 3,911,233 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES: Marketing & Selling Expenses $ (165) $ 932,435 G&A Payroll Expenses 67,060 3,876,814 Occupancy Expenses 3,957 401,530 Bankruptcy Expenses 142,501 2,804,379 General and Administrative Expenses 22,804 3,656,857 Depreciation and Amortization -- 2,594,695 ----------------------------- TOTAL SG&A EXPENSES $ 236,157 $ 14,266,709 ----------------------------- Operating Income (Loss) $ (295,601) $(10,355,476) OTHER INCOME (EXPENSE): Interest Expense $ -- $ 3,720,371 Interest Income 4,050 (22,765) Other 9,798 (6,470,800) Impairment / Restructuring Charges -- 17,053,482 ----------------------------- TOTAL OTHER INCOME (EXPENSE) $ 13,848 $ 14,280,289 ----------------------------- NET INCOME INCLUDING REORGANIZATION ITEMS $ (281,753) $ 3,924,813 ================================================================================ REORGANIZATION ITEMS: Professional Fees $ 142,501 $ 2,793,129 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 $ 142,501 $ 2,804,379 Page 5 of 8 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: June, 2004 FN Estate, Inc. BALANCE SHEET ($ IN REAL NUMBERS) -------------------------------------------------------------------------------- BOOK VALUE AT END OF CURRENT ASSETS REPORTING MONTH -------------------------------------------------------------------------------- CURRENT ASSETS Cash & Cash Equivalents $ 2,267,590 Restricted Cash 314,533 Accounts Receivable 3,909,222 Less: Allowance for doubtful accounts 2,555,146 -------------- NET ACCOUNTS RECEIVABLE 1,354,075 Prepaid and Other Current Assets 251,582 Notes and Other Receivables - US Lec 1,133,694 Property and Equipment, net 1,000 Other Assets 1,184,809 -------------- TOTAL ASSETS $ 6,507,283 ================================================================================ -------------------------------------------------------------------------------- BOOK VALUE AT END OF CURRENT LIABILITIES & STOCKHOLDERS' EQUITY REPORTING MONTH -------------------------------------------------------------------------------- LIABILITIES NOT SUBJECT TO COMPROMISE: Accounts Payable $ 418,795 Other Accrued Liabilities 2,930,918 Deferred Revenue 680,249 -------------- 4,029,963 Other Liabilities 13,662 -------------- TOTAL POSTPETITION LIABILITIES 4,043,625 DUE TO RELATED COMPANIES 12,088,214 LIABILITIES SUBJECT TO COMPROMISE: Secured Debt 84,116 Priority Debt 279,800 Unsecured Debt 15,906,615 -------------- TOTAL PRE-PETITION LIABILITIES 16,270,531 STOCKHOLDERS' EQUITY: Common and Preferred Stock 78,434,584 Note Receivable (75,880) Accumulated deficit (102,826,539) Treasury Cost (1,427,252) -------------- TOTAL SHAREHOLDERS EQUITY (25,895,087) -------------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 6,507,283 ================================================================================ Page 6 of 8 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: June, 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 $ -- $ 3,871.87 $ 3,871.87 6/03 & 6/17/04 EFT-ADP $ -- ----------------------------------------------------------------------------------------------------------- FICA - Employee -- 1,965.76 1,965.76 6/03 & 6/17/04 EFT-ADP -- ----------------------------------------------------------------------------------------------------------- FICA - Employer 4,776.21 3,508.15 1,965.76 6/03 & 6/17/04 EFT-ADP 6,318.60 ----------------------------------------------------------------------------------------------------------- Unemployment -- -- -- 6/03 & 6/17/04 EFT-ADP -- ----------------------------------------------------------------------------------------------------------- Income -- -- ----------------------------------------------------------------------------------------------------------- Other -- -- ----------------------------------------------------------------------------------------------------------- TOTAL FEDERAL TAXES $4,776.21 $ 9,345.78 $ 7,803.39 $ 6,318.60 =========================================================================================================== STATE AND LOCAL ----------------------------------------------------------------------------------------------------------- Withholding $ (282.64) $ 1,085.95 $ 1,085.95 6/03 & 6/17/04 EFT $ (282.64) ----------------------------------------------------------------------------------------------------------- Sales (232.88) 5,078.18 -- 4,845.30 ----------------------------------------------------------------------------------------------------------- Excise -- -- ----------------------------------------------------------------------------------------------------------- Unemployment and Disability 87.18 24.79 111.97 6/03 & 6/17/04 EFT -- ----------------------------------------------------------------------------------------------------------- Real Property -- -- ----------------------------------------------------------------------------------------------------------- Personal Property -- -- ----------------------------------------------------------------------------------------------------------- Other: OPT 10.00 -- -- 10.00 ----------------------------------------------------------------------------------------------------------- State Corp -- -- ----------------------------------------------------------------------------------------------------------- Local -- -- ----------------------------------------------------------------------------------------------------------- TOTAL STATE AND LOCAL $ (418.34) $ 6,188.92 $ 1,197.92 $ 4,572.66 ----------------------------------------------------------------------------------------------------------- TOTAL TAXES $4,357.87 $ 15,534.70 $ 9,001.31 $10,891.26 =========================================================================================================== SUMMARY OF UNPAID POST PETITION DEBTS ($ IN REAL NUMBERS) --------------------------------------------------------------------------------------------------------------- NUMBER OF DAYS PAST DUE ----------------------------------------------------------------- 0-30 31-60 61-90 OVER 90 TOTAL --------------------------------------------------------------------------------------------------------------- Accounts Payable $ (4.37) $157,297.87 $54,132.02 $142,874.03 $354,299.55 --------------------------------------------------------------------------------------------------------------- Wages Payable 76,982.49 76,982.49 --------------------------------------------------------------------------------------------------------------- Taxes Payable 10,891.23 10,891.23 --------------------------------------------------------------------------------------------------------------- Rent/Leases - Building -- -- -- 3,137.96 3,137.96 --------------------------------------------------------------------------------------------------------------- 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 $ 87,869.35 $157,297.87 $54,132.02 $207,369.58 $506,668.82 =============================================================================================================== * "INSIDER" IS DEFINED IN 11 U.S.C. SECTION 101(31) Explain how and when the Debtor intends to pay any past-due postpetition debts. --------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------- Page 7 OF 8
UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: June, 2004 FN Estate, Inc. ACCOUNTS RECEIVABLE RECONCILIATION AND AGING ($ IN REAL NUMBERS) -------------------------------------------------------------------------------- ACCOUNTS RECEIVABLE RECONCILIATION AMOUNT ------------------------------------------------------------------ ------------ Total Accounts Receivable at the beginning of the reporting period $ 3,933,022 + Amounts billed during the period 14,192 - Amounts collected during the period (40,657) + Adjustments (Credit Memos, Debit Memos, journal entries) 2,665 + Other Adjustments -- ------------------------------------------------------------------ ------------ TOTAL ACCOUNTS RECEIVABLE AT THE END OF THE REPORTING PERIOD $ 3,909,222 ================================================================================ ------------------------------------------------------------------ ------------ ACCOUNTS RECEIVABLE AGING AMOUNT ------------------------------------------------------------------ ------------ 0 - 30 days old $ 59,835 31 - 60 days old 69,297 61 - 90 days old 94,239 91+ days old 3,685,851 ------------------------------------------------------------------ ------------ TOTAL ACCOUNTS RECEIVABLE 3,909,222 Amount considered uncollectable (Bad Debt) (2,555,146) ------------------------------------------------------------------ ------------ ACCOUNTS RECEIVABLE (NET) (EXCLUDING ACCRUALS) $ 1,354,075 ================================================================================ 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: -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Page 8 of 8