exv99w2

Exhibit 99.2

UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE


In re SCO Operations, Inc.⁽¹⁾		Case No. 07-11338 (KG)
Debtor		Reporting Period: as of 9/30/2007

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.


		Document	Explanation
REQUIRED DOCUMENTS	Form No.	Attached	Attached
Schedule of Cash Receipts and Disbursements	MOR-1	Yes
Bank Reconciliation (or copies of debtor’s bank reconciliations)	MOR-1a	Yes
Schedule of Professional Fees Paid	MOR-1b	Yes
Copies of bank statements		N/A
Cash disbursements journals		N/A
Statement of Operations	MOR-2	Yes
Balance Sheet	MOR-3	Yes
Status of Postpetition Taxes	MOR-4	Yes
Copies of IRS Form 6123 or payment receipt		N/A
Copies of tax returns filed during reporting period		N/A
Summary of Unpaid Postpetition Debts	MOR-4	Yes
Listing of aged accounts payable	MOR-4	Yes
Accounts Receivable Reconciliation and Aging	MOR-5	Yes
Debtor Questionnaire	MOR-5	Yes

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/ Ken R. Nielsen Signature of Authorized Individual*				10/22/07 Date

Ken R. Nielsen				CFO
Printed Name of Authorized Individual				Title of Authorized Individual


(1)		The Debtors and the last four digits of each of the Debtors’ federal tax identification number are as follows:

(a)		The SCO Group, Inc., a Delaware corporation, Fed. Tax Id. #2823; and (b) SCO Operations, Inc., The Debtors are jointly administered under the caption The SCO Group, Inc., et al., Case No. 07-11337 (KG), a Delaware corporation, Fed. Tax Id. #7393. The address for both Debtors is 355 South 520 West, Lindon, UT 84042.

*		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.

FORM MOR
(04/07)


In re SCO Operations, Inc.		Case No. 07-11338 (KG)
Debtor		Reporting Period: as of 9/30/2007

DISCLAIMER

The Monthly Operating Reports are limited in scope, cover a limited time period, and have been prepared solely for the purpose of complying with the monthly reporting requirements of the Bankruptcy Court and the United States Trustee. Furthermore, the Monthly Operating Reports contain information that has not been audited or reviewed by independent accountants, has not been presented in accordance with generally accepted accounting principles, and may be subject to future reconciliation and adjustments. Without the limiting the foregoing, the financial information in the Monthly Operating Reports is unaudited and does not purport to show the financial statements of any of the Debtors in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and therefore may exclude items required by GAAP, such as certain reclassifications, eliminations, accruals, impairments and disclosure items. For example, among other matters, the value of (including without limitation the actual or likely sales prices for) many of the assets shown on the balance sheets included in the Monthly Operating Reports will be substantially less information. The Company cautions readers not to place undue reliance upon the Monthly Operating Reports. There can be no assurance that the information in the Monthly Operating Reports is complete. The Monthly Operating Reports may be subject to revision. The Monthly Operating Reports are in a format required by the United States Trustee and should not be used for investment purposes. The information in the Monthly Operating Reports should not be viewed as indicative of future results. This Disclaimer applies to all information contained therein.


In re SCO Operations, Inc.		Case No. 07-11338 (KG)
Debtor		Reporting Period: as of 9/30/2007

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 each account. [See MOR-1a]


											CUMULATIVE FILING TO
	BANK ACCOUNTS					CURRENT MONTH					DATE
	OPER.		PAYROLL	TAX	OTHER	ACTUAL		PROJECTED			ACTUAL		PROJECTED
CASH BEGINNING OF MONTH						$	5,914,445	$	6,134,160	⁽¹⁾	$	5,914,445	$	6,134,160

RECEIPTS
CASH SALES
ACCOUNTS RECEIVABLE		N/A					692,854		653,000			692,854		653,000
LOANS AND ADVANCES
SALE OF ASSETS
OTHER (ATTACH LIST)							2,587					2,591
TRANSFERS (FROM DIP ACCTS)

TOTAL RECEIPTS						$	695,441	$	653,000		$	695,444	$	653,000

DISBURSEMENTS
NET PAYROLL							20,329		28,000			20,329		28,000
PAYROLL TAXES							82,846		18,000			82,846		18,000
SALES, USE, & OTHER TAXES							3,313					3,313
INVENTORY PURCHASES
SECURED/RENTAL/LEASES									3,170					3,170
INSURANCE							16,992		53,365			16,992		53,365
ADMINISTRATIVE & SELLING							45,624		65,455			14,227		65,455
OTHER (ATTACH LIST)							1,994					33,390

OWNER DRAW*
TRANSFER (TO DIP ACCTS)

PROFESSIONAL FEES									5,000					5,000
U.S. TRUSTEE QUARTERLY FEES
COURT COSTS
TOTAL DISBURSEMENTS						$	171,097	$	172,990		$	171,097	$	172,990

NET CASH FLOW (RECEIPTS LESS DISBURSEMENTS)						$	524,344	$	480,010		$	524,347	$	480,010

CASH — END OF MONTH						$	6,438,789	$	6,614,170		$	6,438,793	$	6,614,170


*		COMPENSATION TO SOLE PROPRIETORS FOR SERVICES RENDERED TO BANKRUPTCY ESTATE

THE FOLLOWING SECTION MUST BE COMPLETED


DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)
TOTAL DISBURSEMENTS	$	171,097
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	$	171,097

FORM MOR-1
(4/07)


Notes:

(1)		The initial MOR incorrectly included consolidated cash balances from subsidiaries. This amount reflects cash only held in SCO Operations, Inc. bank accounts.


In re SCO Operations, Inc.		Case No. 07-11338 (KG)
Debtor		Reporting Period: as of 9/30/2007

Other Receipts/Disbursements Attachment


Other Receipts
Interest	$	1,729
NJ Tax Refund		127
Cobra Refund		731

Total	$	2,587

Other Disbursements
Bank Fees		119
FX		1,874

Total	$	1,994


In re SCO Operations, Inc.		Case No. 07-11337 (KG)
Debtor		Reporting Period: as of 9/30/2007

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.

Operating

Payroll

Tax

Other

BALANCE PER BOOKS

BANK BALANCE

(+) DEPOSITS IN TRANSIT (ATTACH LIST)

(-) OUTSTANDING CHECKS (ATTACH LIST)

OTHER (ATTACH EXPLANATION)

ADJUSTED BANK BALANCE*


*		Adjusted bank balance must equal balance per books

DEPOSITS IN TRANSIT See attestation letter

CHECKS OUTSTANDING

OTHER

FORM MOR-1b
(04/07)

October 22, 2007


Re:		The SCO Group, Inc., et al. Del. Bankr. No. 07-11337 Attestation Regarding Bank Account Reconciliation

Office of the United States Trustee

The above-captioned debtors (the “Debtors”) hereby submit this attestation regarding bank account reconciliations in lieu of providing copies of bank statements and copies of all account reconciliations.

The Debtors have, on a timely basis, performed all bank account reconciliations in the ordinary course of its business. Copies of bank account statements and reconciliations are available for inspection upon request by the United States Trustee’s Office.

Dated: 10/22/07


	THE SCO GROUP, INC. and SCO OPERATIONS, INC.
	By:	/s/ Ken R. Nielsen
		Ken Nielsen
		Chief Financial Officer


In re SCO Operations, Inc.		Case No. 07-11338 (KG)
Debtor		Reporting Period: as of 9/30/2007

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID
(This schedule is to include all retained professional payments from case inception to current month)

Period

Amount

Check

Amount Paid

Amount Applied

Payee

Covered

Approved

Payor

Number

Date

Fees

Expenses

Fees

Expenses

None

FORM MOR-1b
(04/07)


In re SCO Group, Inc.		Case No. 07-11338 (KG)
Debtor		Reporting Period: as of 9/30/2007

STATEMENT OF OPERATIONS

(Income Statement)

This 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.


	9/15/2007 through			Cumulative
REVENUES	9/30/2007			Filing to Date
Gross Revenues	$	610,605		$	610,605
Less: Returns and Allowances		9,923			9,923
Net Revenue	$	600,682		$	600,682
COST OF GOODS SOLD
Beginning Inventory		160,178			160,178
Add: Purchases		4,267			4,267
Add: Cost of Labor		—			—
Add: Other Costs (attach schedule)		—			—
Less: Ending Inventory		159,570			159,370
Cost of Goods Sold		4,875			4,875
Gross Profit	$	595,807		$	595,807
OPERATING EXPENSES
Advertising		10,240			10,240
Auto and Truck Expense		—			—
Bad Debts		—			—
Contributions		—			—
Employee Benefits Programs		99,478			99,478
Insider Compensation*		—			—
Insurance		26,639			26,639
Management Fees/Bonuses		—			—
Office Expense		53,628			53,628
Pension & Profit-Sharing Plans		—			—
Professional Fees (Non-Bankruptcy)		141,958			141,958
Repairs and Maintenance		106			106
Rent and Lease Expense		51,536			51,536
Salaries/Commissions/Fees		330,860			330,860
Supplies		422			422
Taxes — Payroll		—			—
Taxes — Real Estate		707			707
Taxes — Other		—			—
Travel and Entertainment		17,687			17,687
Utilities		5,541			5,541
Other (attach schedule)		—			—
Total Operating Expenses Before Depreciation		738,801			738,801
Depreciation/Depletion/Amortization		10,386			10,386
Net Profit (Loss) Before Other Income & Expenses	$	(153,380	)	$	(153,380	)
OTHER INCOME AND EXPENSES
Other Income (attach schedule)		—			—
Interest Expense		—			—
Other Expense (attach schedule)		3,751			3,751
Intercompany Transfers		489,952			489,952
Net Profit (Loss) Before Reorganization Items	$	(647,083	)	$	(647,083	)
REORGANIZATION ITEMS
Professional Fees		85,000			85,000
U.S. Trustee Quarterly Fees⁽¹⁾		—			—
Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet)		925			925
Gain (Loss) from Sale of Equipment		—			—
Other Reorganization Expenses (attach schedule)		—			—
Total Reorganization Expenses		—			—
Income Taxes		—			—
Net Profit (Loss)	$	(731,158	)	$	(731,158	)


(1)		U.S. Trustee Quarterly Fees, due no later than one month following the end of each quarter, are estimated to be $1,250.

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

FORM MOR-2
(4/07)


In re SCO Group, Inc.		Case No. 07-11338 (KG)
Debtor		Reporting Period: as of 9/30/2007

STATEMENT OF OPERATIONS — continuation sheet


			Cumulative
BREAKDOWN OF “OTHER” CATEGORY	Month		Filing to Date

Other Costs

Other Operational Expenses

Other Income

Other Expenses
Foreign Exchange Loss	$	2,913	$	2,913
Bank Charges		839		839

TOTAL CURRENT ASSETS	$	3,751	$	3,751
Other Reorganizational 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 items.

FORM MOR-2 (CONT’D)
(04/07)


In re SCO Group, Inc.		Case No. 07-11338 (KG)
Debtor		Reporting Period: as of 9/30/2007

BALANCE SHEET

The Balance Sheet is to be completed on an accrual basis only. Pre-petition liabilities must be classified separately from postpetition obligations.


	BOOK VALUE AT END OF		BOOK VALUE ON
ASSETS	CURRENT REPORTING MONTH		PETITION DATE
CURRENT ASSETS
Unrestricted Cash and Equivalents	$	4,498,958	$	4,023,589
Restricted Cash and Cash Equivalents (see continuation sheet)		1,939,831		1,890,856
Accounts Receivable (Net)		2,818,001		3,092,548
Notes Receivable		—		—
Inventories		159,570		160,178
Prepaid Expenses		1,674,009		1,527,293
Professional Retainers		—		—
Other Current Assets (attach schedule)		2,288,687		2,433,409
TOTAL CURRENT ASSETS	$	13,379,057	$	13,127,872
PROPERTY AND EQUIPMENT
Real Property and Improvements		—		—
Machinery and Equipment		—		—
Furniture, Fixtures and Office Equipment		3,420,803		3,420,803
Leasehold Improvements		507,934		507,934
Vehicles		27,605		27,605
Less Accumulated Depreciation		3,646,324		3,635,938
TOTAL PROPERTY & EQUIPMENT	$	310,019	$	320,404
OTHER ASSETS
Loans to Insiders*		—		—
Other Assets (attach schedule)		2,044,803		2,044,803
TOTAL OTHER ASSETS	$	2,044,803	$	2,044,803

TOTAL ASSETS	$	15,733,879	$	15,493,080


	BOOK VALUE AT END OF			BOOK VALUE ON
LIABILITIES AND OWNER EQUITY	CURRENT REPORTING MONTH			PETITION DATE
*LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition)*
Accounts Payable		225,292			8,259
Taxes Payable (refer to FORM MOR-4)		694,157			697,681
Wages Payable		1,017,417			541,775
Notes Payable		—			—
Rent / Leases — Building/Equipment		—			—
Secured Debt / Adequate Protection Payments		—			—
Professional Fees		144,065			153,165
Amounts Due to Insiders*		—			—
Other Postpetition Liabilities (attach schedule)		5,389,406			4,752,821
TOTAL POSTPETITION LIABILITIES	$	7,470,338		$	6,153,702
LIABILITIES SUBJECT TO COMPROMISE (Pre-petition)
Secured Debt		—			—
Priority Debt		—			—
Unsecured Debt		2,047,586			1,078,896
TOTAL PRE-PETITION LIABILITIES⁽¹⁾	$	2,047,586		$	1,078,896

TOTAL LIABILITIES	$	9,517,924		$	7,232,598
OWNER EQUITY
Capital Stock		21,783			21,783
Additional Paid-In Capital		260,873,412			260,873,412
Partners’ Capital Account		—			—
Owner’s Equity Account		—			—
Retained Earnings — Pre-Petition⁽²⁾		(254,757,969	)		(253,444,600	)
Retained Earnings — Postpetition⁽²⁾		(731,158	)		—
Adjustments to Owner Equity (attach schedule)		809,887			809,887
Postpetition Contributions (Distributions) (Draws) (attach schedule)		—			—
NET OWNER EQUITY	$	6,215,955		$	8,260,482

TOTAL LIABILITIES AND OWNERS’ EQUITY	$	15,733,879		$	15,493,080


(1)		Total Pre-petition Liabilities does not reconcile to the amount stated on the Schedules of Assets and Liabilities filed on October 15, 2007 due to timing differences and allocation of accruals.

(2)		Due to the allocation of accruals and adjustments booked at month end, the net loss for the 9/15 to 9/30 period does not reconcile to the change in retained earnings. There will not be an unreconciled difference in future periods as Company reporting periods will correspond with the Monthly Operating Report periods.

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

FORM MOR-3
(04/07)


In re SCO Group, Inc.		Case No. 07-11338 (KG)
Debtor		Reporting Period: as of 9/30/2007

BALANCE SHEET — continuation sheet


	BOOK VALUE AT END OF			BOOK VALUE ON
ASSETS	CURRENT REPORTING MONTH			PETITION DATE
Other Current Assets
Accounts Receivable Credit Card Batch	$	5,136		$	18,583
Interest Income Receivable		6,182			6,182
Employee Travel Advance		24,250			14,250
Other Receivables		67,060			67,060
Deposits		97,836			97,836
Interdivision Transfers		(9,992	)		—
Intercompany Receivables — SCO Group		1,745,258			1,745,258
Intercompany Receivables — SCO India		—			127,598
Intercompany Receivables — SCO Japan		352,958			356,642

TOTAL OTHER CURRENT ASSETS	$	2,288,687		$	2,433,409
Other Assets
Goodwill		2,042,600			2,042,600
Investment in Affiliates		2,203			2,203

TOTAL OTHER ASSETS	$	2,044,803		$	2,044,803


	BOOK VALUE AT END OF			BOOK VALUE ON
LIABILITIES AND OWNER EQUITY	CURRENT REPORTING MONTH			PETITION DATE
Other Postpetition Liabilities
Accrued Co-op Advertising		234,719			234,719
E*Trade Cash Accrual		125			125
Accrued Expense — Research & Development		130,779			130,779
Accrued Expense — Sales & Marketing		133,983			134,489
Accrued Expense — General & Administrative		10,500			10,500
Accrued Expense — General Legal		132,500			132,500
Accrued Expense — Escrow Legal		425,455			425,455
Accrued Expense — Other		55,950			45,262
Deferred Income — Services		1,099,663			1,223,830
Deferred Income — PS CONTRAT AC		7,746			9,273
Deferred Income — SES		306,017			341,882
Deferred Income — SES		590			722
Deferred Revenue		25,616			25,616
Deferred Customer Liability		482,653			482,653
Deferred Revenue @ DISTRIB		176,994			176,994
Royalties Payable		41,231			41,231
Accrued Royalties Payable		146,405			146,405
Royalties Payable to Novell		133,984			133,984
Intercompany Payables — UK		204,019			—
Intercompany Payables — SCO Germany		181,479			—
Intercompany Payables — SCO France		78,524			—
Intercompany Payables — SCO Canada		16,924			—
Intercompany Payables — SCO India		307,148			—
Dilapidation Accrual		184,401			184,401
Pension Accrual		872,000			872,000

TOTAL OTHER POSTPETITION LIABILITIES	$	5,389,406		$	4,752,821
Adjustments to Owner Equity
Warrants Outstanding		856,549			856,549
Dividends Declared		2,399,095			2,399,095
Treasury Stock		(2,445,757	)		(2,445,757	)

TOTAL OTHER ADJUSTMENTS TO OWNER EQUITY	$	809,887		$	809,887
Postpetition Contributions (Distributions) (Draws)

FORM MOR-3 (CONT’D)
(04/07)


In re SCO Operations, Inc.		Case No. 07-11338 (KG)
Debtor		Reporting Period: as of 9/30/2007

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

Amount

Ending

Tax

Withheld or

Amount

Date

Check No.

Tax

Liability

Accrued

Paid

or EFT

Liability

Federal

Withholding

FICA-Employee

FICA-Employer

Unemployment

See attestation letter

Income

Other: ______

Total Federal Taxes

State and Local

Withholding

Sales

Excise

Unemployment

See attestation letter

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		0-30		31-60		61-90		Over 90		Total
Accounts Payable	$	225,292	$	—	$	—	$	—	$	—	$	225,292
Wages Payable		1,017,417		—		—		—		—		1,017,417
Taxes Payable		694,157		—		—		—		—		694,157
Rent/Leases-Building		—		—		—		—		—		—
Rent/Leases-Equipment		—		—		—		—		—		—
Secured Debt/Adequate Protection Payments		—		—		—		—		—		—
Professional Fees		144,065		—		—		—		—		144,065
Amounts Due to Insiders*		—		—		—		—		—		—
Other: Other Postpetition Liabilities		5,389,406		—		—		—		—		5,389,406

Total Postpetition Debts		7,470,738	$	—	$	—	$	—	$	—	$	7,470,338

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).

FORM MOR-4
(04/07)

October 22, 2007


Re:		The SCO Group, Inc., et al.
		Del. Bankr. No. 07-11337
		Attestation Regarding Postpetition Taxes

Office of the United States Trustee

The above-captioned debtors (the “Debtors”) hereby submit the attestation regarding postpetition taxes.

All postpetition taxes for the Debtors, which are not subject to dispute or reconciliation, are current. There are no material tax disputes or reconciliations.

Dated: 10/22/07


	THE SCO GROUP, INC. and SCO OPERATIONS, INC.
	By:	/s/ Ken R. Nielsen
		Ken Nielsen
		Chief Financial Officer


In re SCO Operations, Inc.		Case No. 07-11338 (KG)
Debtor		Reporting Period: as of 9/30/2007

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING


Accounts Receivable Reconciliation	Amount
Total Accounts Receivable at the beginning of the reporting period	$	3,332,387
+ Amounts billed during the period		595,425
- Amounts collected during the period		697,688
Total Accounts Receivable at the end of the reporting period	$	3,230,124

Accounts Receivable Aging
0 — 30 days old		2,372,952
31 — 60 days old		389,966
61 — 90 days old		150,383
91+ days old		316,822

Total Accounts Receivable		3,230,124
Receivables-Royalties		104,467
Allowance for Sales Returns		(425,612	)
Allowance for Doubtful Accounts		(90,978	)

Accounts Receivable (Net)	$	2,818,001

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
5.	Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.		x

Form MOR-5
(04/07)