EX-99.1 2 fastnet_8kex99-1.txt EXHIBIT 99.1 In re: FN ESTATE, INC. Debtors. Case No. 03-23143 Reporting Period: January, 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: January, 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 ------------------------------------------------------------------------------------------------------------------------------------ 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 May 27, 2004 --------------------------------------------------------------------------- ------------------------------------- Signature of Authorized Individual* Date R. Barry Borden Chairman and President --------------------------------------------------------------------------- ------------------------------------- Printed Name of Authorized Individual Title of Authorized Individual
Page 1 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: January, 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 * $ 4,495,892 $ 938,508 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- RECEIPTS: -------------------------------------------------------------------------------- Collection of Accounts Receivable -- 11,654,568 -------------------------------------------------------------------------------- Asset Sale Proceeds -- 5,905,707 -------------------------------------------------------------------------------- Other 622,986 2,703,357 -------------------------------------------------------------------------------- TOTAL RECEIPTS 622,986 20,263,632 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- DISBURSEMENTS: -------------------------------------------------------------------------------- Payroll and Related Benefits 573,233 5,003,272 -------------------------------------------------------------------------------- Travel and Entertainment 2,039 74,940 -------------------------------------------------------------------------------- Insurance 16,719 134,165 -------------------------------------------------------------------------------- Utilities 769,222 8,093,806 -------------------------------------------------------------------------------- Occupancy 43,279 640,089 -------------------------------------------------------------------------------- Suppliers -- -- -------------------------------------------------------------------------------- G&A 627,555 4,169,038 -------------------------------------------------------------------------------- TOTAL DISBURSEMENTS 2,032,048 18,115,310 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- NET CASH FLOW (1,409,062) 2,148,323 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- CASH - END OF MONTH $ 3,086,830 $ 3,086,830 -------------------------------------------------------------------------------- * 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 $ 2,032,048 -------------------------------------------------------------------------------- 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 $ 2,032,048 -------------------------------------------------------------------------------- Page 2 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: January, 2004
FN Estate, Inc. BANK RECONCILIATION ($ IN REAL NUMBERS) ------------------------------------------------------------------------------------------------------------------------------------ BANK ACCOUNTS ------------------------------------------------------------------------------------------------------------------------------------ WACHOVIA WACHOVIA OPERATING CREDIT SILICON AMBLER CORP PETTY DIP CARD VALLEY HSBC * DEBIT DEBIT HUDSON CASH TOTAL ----------------------------------------------------------------------------------------------------------------- BALANCE PER BOOKS $2,759,217.30 $ -- $3,675.53 $314,707.85 $ -- $2,357.14 $6,356.88 $515.59 $3,086,830.29 BANK BALANCE $3,053,640.41 $ -- $3,675.53 $314,707.85 $ -- $2,357.14 $6,356.88 $515.59 $3,381,253.40 Plus: Deposits In Transit -- Less: Outstanding Checks 294,423.11 294,423.11 Other: Adjustment -- ----------------------------------------------------------------------------------------------------------------- BALANCE PER BOOKS $2,759,217.30 $ -- $3,675.53 $314,707.85 $ -- $2,357.14 $6,356.88 $515.59 $3,086,830.29 ================================================================================================================= * Bank Account HSBC represents Restricted cash related to Applied Theory Estate. EXPLANATIONS: ------------------------------------------------------------------------------------------------------------------------------------ Ambler Debit Card account was closed 1/15/04 (date of sale) ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ Page 3
UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: January, 2004 FN Estate, Inc. STATEMENT OF OPERATIONS ($ IN REAL NUMBERS) -------------------------------------------------------------------------------- CUMULATIVE JANUARY FILING TO DATE -------------------------------------------------------------------------------- Net Revenues $ 154,028 $ 14,334,463 Cost of Sales 126,017 10,373,567 ----------------------------- GROSS MARGIN $ 28,012 $ 3,960,896 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES: Marketing & Selling Expenses $ -- $ 932,600 G&A Payroll Expenses 127,042 3,532,179 Occupancy Expenses 15,794 351,154 Bankruptcy Expenses 144,122 1,987,264 General and Administrative Expenses 65,959 3,529,573 Depreciation and Amortization -- 2,594,695 ----------------------------- TOTAL SG&A EXPENSES $ 352,916 $ 12,927,464 ----------------------------- OPERATING INCOME (LOSS) $ (324,905) $ (8,966,568) OTHER INCOME (EXPENSE): Interest Expense $ -- $ (3,720,371) Interest Income 4,377 22,460 Other 894,819 6,598,531 Impairment/Restructuring Charges -- (17,053,482) ----------------------------- INCOME BEFORE PROVISION FOR INCOME TAXES $ 899,195 $ (14,152,862) Provision for Income Taxes -- -- ----------------------------- NET INCOME BEFORE REORGANIZATION ITEMS $ 574,291 $ (23,119,430) ================================================================================ REORGANIZATION ITEMS: Professional Fees $ 144,122 $ 1,976,014 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 $ 144,122 $ 1,987,264 Page 4 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: January, 2004 FN Estate, Inc. BALANCE SHEET ($ IN REAL NUMBERS) -------------------------------------------------------------------------------- BOOK VALUE AT END OF CURRENT ASSETS REPORTING MONTH -------------------------------------------------------------------------------- CURRENT ASSETS Cash & Cash Equivalents $ 2,772,122 Restricted Cash 314,708 Accounts Receivable 3,732,205 Less: Allowance for doubtful accounts 2,579,795 ------------- NET ACCOUNTS RECEIVABLE 1,152,410 Prepaid and Other Current Assets 436,290 Notes and Other Receivables - US Lec 1,980,761 Property and Equipment, net 384,883 Other Assets 1,549,771 ------------- TOTAL ASSETS $ 8,590,945 ================================================================================ -------------------------------------------------------------------------------- BOOK VALUE AT END OF CURRENT LIABILITIES & STOCKHOLDERS' EQUITY REPORTING MONTH -------------------------------------------------------------------------------- LIABILITIES NOT SUBJECT TO COMPROMISE: Accounts Payable $ 359,188 Other Accrued Liabilities 3,550,902 Deferred Revenue 917,495 ------------- 4,827,585 Other Liabilities 21,759 ------------- TOTAL POSTPETITION LIABILITIES 4,849,341 DUE TO RELATED COMPANIES 12,086,262 LIABILITIES SUBJECT TO COMPROMISE: Secured Debt 253,357 Priority Debt 297,685 Unsecured Debt 15,760,563 ------------- TOTAL PRE-PETITION LIABILITIES 16,311,606 STOCKHOLDERS' EQUITY: Common and Preferred Stock 78,434,584 Note Receivable (75,880) Accumulated deficit (101,587,716) Treasury Cost (1,427,252) ------------- TOTAL SHAREHOLDERS EQUITY (24,656,264) ------------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 8,590,945 ================================================================================ Page 5 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: January, 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 $ -- $122,311.39 $122,311.39 1/15,1/29/04 EFT-ADP $ -- ----------------------------------------------------------------------------------------------------------- FICA - Employee -- 28,716.30 28,716.30 1/15,1/29/04 EFT-ADP -- ----------------------------------------------------------------------------------------------------------- FICA - Employer 39,115.24 (4,609.09) 28,716.30 1/15,1/29/04 EFT-ADP 5,789.85 ----------------------------------------------------------------------------------------------------------- Unemployment 86.90 1,208.99 1,262.17 1/15,1/29/04 EFT-ADP 33.72 ----------------------------------------------------------------------------------------------------------- Income -- -- ----------------------------------------------------------------------------------------------------------- Other: 2,282.90 2,282.90 ----------------------------------------------------------------------------------------------------------- TOTAL FEDERAL TAXES $41,485.04 $147,627.59 $181,006.16 $ 8,106.47 =========================================================================================================== STATE AND LOCAL ----------------------------------------------------------------------------------------------------------- Withholding $ (282.64) $ 35,282.38 $ 35,282.38 1/15,1/29/04 EFT-ADP $ (282.64) ----------------------------------------------------------------------------------------------------------- Sales* 8,164.73 (26.89) 4,884.86 1/9/2004 36994, 36995 3,252.98 ----------------------------------------------------------------------------------------------------------- Excise -- -- ----------------------------------------------------------------------------------------------------------- Unemployment and Disability 1,009.55 14,650.25 15,213.14 1/15,1/29/04 EFT-ADP 446.66 ----------------------------------------------------------------------------------------------------------- Real Property -- -- ----------------------------------------------------------------------------------------------------------- Personal Property -- -- ----------------------------------------------------------------------------------------------------------- Other: OPT 60.00 280.00 40.00 EFT-ADP 300.00 ----------------------------------------------------------------------------------------------------------- State Corp -- -- ----------------------------------------------------------------------------------------------------------- Local -- -- ----------------------------------------------------------------------------------------------------------- TOTAL STATE AND LOCAL $ 8,951.64 $50,185.74 $55,420.38 $ 3,717.00 ----------------------------------------------------------------------------------------------------------- TOTAL TAXES $50,436.68 $197,813.33 $236,426.54 $11,823.47 =========================================================================================================== *Note - this has been reduced by $17,663.73 of pre-petition sales due. SUMMARY OF UNPAID POST PETITION DEBTS ($ IN REAL NUMBERS) --------------------------------------------------------------------------------------------------------------- NUMBER OF DAYS PAST DUE ----------------------------------------------------------------- 0-30 31-60 61-90 OVER 90 TOTAL --------------------------------------------------------------------------------------------------------------- Accounts Payable $270,288.19 $ 2,368.28 $ 9,076.25 $ 0.00 $281,732.72 --------------------------------------------------------------------------------------------------------------- Wages Payable 392,135.91 392,135.91 --------------------------------------------------------------------------------------------------------------- Taxes Payable 20,809.31 20,809.31 --------------------------------------------------------------------------------------------------------------- Rent/Leases - Building 28,669.00 2,250.00 239.00 648.96 31,806.96 --------------------------------------------------------------------------------------------------------------- Rent/Leases - Equipment -- 7,721.35 16,509.18 21,417.39 45,647.92 --------------------------------------------------------------------------------------------------------------- Secured Debt/Adequate Protection Payments -- --------------------------------------------------------------------------------------------------------------- Professional Fees -- -- -- -- -- --------------------------------------------------------------------------------------------------------------- Amounts Due to Insiders * -- --------------------------------------------------------------------------------------------------------------- Other: -- --------------------------------------------------------------------------------------------------------------- Other: -- --------------------------------------------------------------------------------------------------------------- TOTAL POSTPETITION DEBTS $711,902.41 $ 12,339.63 $ 25,824.43 $22,066.35 $772,132.82 =============================================================================================================== * "INSIDER" IS DEFINED IN 11 U.S.C. SECTION 101(31) Explain how and when the Debtor intends to pay any past-due postpetition debts. -------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------- Page 6
UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: January, 2004 FN Estate, Inc. ACCOUNTS RECEIVABLE RECONCILIATION AND AGING ($ IN REAL NUMBERS) -------------------------------------------------------------------------------- ACCOUNTS RECEIVABLE RECONCILIATION AMOUNT ------------------------------------------------------------------ ------------ Total Accounts Receivable at the beginning of the reporting period $ 3,618,034 + Amounts billed during the period 121,503 - Amounts collected during the period (230) + Adjustments (Credit Memos, Debit Memos, journal entries) (7,102) + Other Adjustments -- ------------------------------------------------------------------ ------------ TOTAL ACCOUNTS RECEIVABLE AT THE END OF THE REPORTING PERIOD $ 3,732,205 ================================================================================ ------------------------------------------------------------------ ------------ ACCOUNTS RECEIVABLE AGING AMOUNT ------------------------------------------------------------------ ------------ 0 - 30 days old $ 460,261 31 - 60 days old 32,405 61 - 90 days old 31,040 91+ days old 3,208,498 ------------------------------------------------------------------ ------------ TOTAL ACCOUNTS RECEIVABLE 3,732,205 Amount considered uncollectable (Bad Debt) (2,579,795) ------------------------------------------------------------------ ------------ ACCOUNTS RECEIVABLE (NET) (EXCLUDING ACCRUALS) $ 1,152,410 ------------------------------------------------------------------ ------------ 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 7