EX-99.1 2 v091893_ex99-1.htm
Exh 99.1

             
676A Ninth Avenue #211
                
New York, NY 10036
                
Tel: (646) 290-6496
                
Fax: (646) 224-8377
                
David C. McGrail (DM 3904)
                
Counsel To PubliCARD, Inc.
                
                     
UNITED STATES BANKRUPTCY COURT
            
SOUTHERN DISTRICT OF NEW YORK
            
----------------------------------------------------------------------------
:
        
           
:
Chapter 11
    
In re:
PUBLICARD, INC.,
    
:
Case No. 07-11517 (RDD)
  
           
:
        
   
Debtor
      
:
        
           
:
        
           
:
        
----------------------------------------------------------------------------
:
        
                     
                     
MONTHLY CONSOLIDATED STATEMENT
FOR THE PERIOD ENDED
         
September 30, 2007
          
                     
MONTHLY RECEIPTS:
    
$ 89
         
                     
MONTHLY DISBURSEMENTS:
  
$ 13,636
         
                     
THIS OPERATING STATEMENT MUST BE SIGNED BY A REPRESENTATIVE OF THE DEBTOR
  
                     
The undersigned, having reviewed the attached report and being familiar with the debtor's financial
      
affairs, verifies under penalty of perjury, that the information contained therein is complete, accurate and
    
truthful to the best of my knowledge.
              
                     
DATE:
30-Oct-07
    
By:
/s/ Marc B. Ross
 
 
 
    
                     
       
Title:
Principal Financial Officer
 
 
    
                     
Indicate if this is an amended statement by checking here
 
        
 
1
 
PubliCARD, Inc.
              
(Debtor-In-Possession)
              
Statement Of Operations
              
For the Period Ending September 30, 2007
              
Accrual Basis
             
     
Current
Month Ended
September 30, 2007
 
 
Case-To-Date
through
September 30, 2007
  
     
 
    
 
  
Revenue
  
$
-
  
$
-
  
               
Operating Expenses              
Direct Cost Of Revenue
   
-
   
-
 
Selling, General and Administrative
    
39,109
   
186,041
 
Depreciation Of Fixed Assets
    
96
   
480
 
Total Operating Expenses
    
39,205
   
186,521
 
               
Operating Gain/(Loss)
    
(39,205
)
  
(186,521
)
               
Other Expense/(Income)
              
Interest Expense
    
-
   
-
 
Loss/(Gain) On The Sale Of Assets
    
-
   
-
 
Interest Income
    
(89
)
  
(713
)
           
Income/(Loss) Before Reorganizational Items and Taxes
    
(39,116
)
  
(185,808
)
               
US Trustee Fees - Q3 2007
    
250
   
1,000
 
               
Reorganization Professional Fees (Estimated and Accrued)
  (1)  
6,000
   
24,240
 
     
6,250
   
25,240
 
               
Gain/(Loss) Before Income Taxes
    
(45,366
)
  
(211,048
)
               
Provision For Income Taxes
    
-
   
-
 
               
Net Income/(Loss)
    
(45,366
)
  
(211,048
)
               
Deficit Beginning of Period
    
(113,779,012
)
  
(113,613,330
)
               
Deficit End Of Period
 
$
(113,824,378
)
$
(113,824,378
)
 
     -    
-
 
 (1)  Includes estimated and accrued fees for debtor professionals.
      
 
2
 
(Debtor-In-Possession)
                    
     
September 30, 2007
Balance Sheet  
    
 
August 31, 2007
    
May 17, 2007
Balance Sheet 
  
Current Assets
                    
                     
Cash
  
$
45,384
  
$
58,156
  
$
39,723
  
Restricted Cash
    
-
   
-
   
-
 
Due From Related Parties
    
-
   
-
   
-
 
Accounts Receivable-Net
    
(268
)
  
(268
)
  
13,364
 
Inventory Net
    
-
   
-
   
-
 
Prepaid Rent
    
-
   
-
   
-
 
Prepaid Insurance
    
13,048
   
20,837
   
43,272
 
Prepaid Professional
    
-
   
-
   
-
 
Prepaid Expenses
    
19,200
   
19,200
   
19,200
 
Total Current Assets
    
77,364
   
97,925
   
115,559
 
                     
Property, Plant, & Equipment - Gross
    
14,404
   
14,404
   
14,404
 
Accumulated Depreciation
    
(10,566
)
  
(10,470
)
  
(10,088
)
Property, Plant, & Equipment - Net
    
3,838
   
3,934
   
4,316
 
Intangibles - Gross
    
-
   
-
   
-
 
Accumulated Amortization
    
-
   
-
   
-
 
                     
Intangibles - Net
    
-
   
-
   
-
 
Organizational Costs
    
-
   
-
   
-
 
Other - Non-Current
    
-
   
-
   
-
 
                     
Total Assets
  
$
81,202
  
$
101,859
  
$
119,875
  
                     
Post-Petition Liabilities
                    
Cash Overdrafts
  
$
-
  
$
-
  
$
-
  
Accounts Payable
    
13,398
   
5,896
   
-
 
Accrued Payroll/Commission
    
8,292
   
4,585
   
-
 
Accrued Consulting
    
30,000
   
22,500
   
-
 
Due to Affiliates
    
71,915
   
71,915
   
-
 
Other Current Liabilities/Accrued Professional Fees
    
24,240
   
18,240
   
-
 
Total Post Petition Current Liabilities
    
147,845
   
123,136
   
-
 
                     
Pre-Petition Liabilities
                    
Cash Overdrafts
    
-
   
-
   
-
 
Accounts Payable
    
294,021
   
294,021
   
269,491
 
Deferred Revenues
    
-
   
-
   
-
 
Accrued Payroll/Commission
    
-
   
-
   
-
 
Obligations For Capital Leases Current
    
-
   
-
   
-
 
Other Current Liabilities
    
19,800
   
19,800
   
19,800
 
Total Pre- Petition Current Liabilities
    
313,821
   
313,821
   
289,291
 
                     
Interest Payable
    
-
   
-
   
-
 
Other Long Term Liabilities
    
-
   
-
   
-
 
 
     -    
-
   
-
 
                     
Total Liabilities
    
461,666
   
436,957
   
289,291
 
                     
Stockholders Deficit
                    
Class A Preferred Stock Second Series, no par value:1,000 shares authorized
    
2,325,000
   
2,325,000
   
2,325,000
 
465 shares issued and outstanding
                   
Common shares, $0.10 par value: 40,000,000 shares authorized; 24,940,902
   
2,494,090
   
2,494,090
   
2,494,090
 
shares outstanding
                    
Additional paid-in capital
    
108,624,824
   
108,624,824
   
108,624,824
 
Accumulated deficit
    
(113,824,378
)
  
(113,779,012
)
  
(113,613,330
)
Total Stockholders’ Deficit
    
(380,464
)
  
(335,098
)
  
(169,416
)
                     
Total Liabilities and Stockholder Equity
  
$
81,202
  
$
101,859
  
$
119,875
  
 
3
 
               
PubliCARD, Inc.
(Debtor-In-Possession)
Statement Of Cash Flow
For the Period Ending September 30, 2007
    
Current
Month
September 30, 2007 
    
Case-To-Date
September 30, 2007 
  
               
Net Income/(Loss)
  
$
(45,366
)
$
(211,048
)
(Less)/Add: Depreciation
    
96
   
480
 
(Less)/Add: Amortization
              
               
(Increase)/Decrease In Net Assets
              
Net Accounts Receivable
    
-
   
13,632
 
Net Inventory
    
-
   
-
 
Prepaid Rent
              
Prepaid & Other Expenses
    
7,789
   
30,222
 
               
Increase/(Decrease) In Liabilities
              
Bank Overdrafts
    
-
   
-
 
Accounts Payable
    
7,502
   
37,928
 
Deferred Revenues
   
-
   
-
 
Accrue Payroll/Commission
    
3,707
   
8,292
 
Accrued Consulting
    
7,500
   
30,000
 
Other Current Liabilities
    
6,000
   
24,240
 
Collection of insurance proceeds Due to Inactive Affiliates
     -     
71,915
 
               
Cash Provided by/(used in) operations
    
(12,772
)
  
5,661
 
               
Capital Expenditures
    
-
   
-
 
Cash provided by/(used in) investing activities
    
                                       -
   
       -
 
               
Proceeds/(Repayments of) Debt
    
-
   
-
 
Proceeds received on behalf of Affiliates
                                        
Cash provided by (used in) financing activities
    
-
   
-
 
               
Change in cash
    
(12,772
)
  
5,661
 
Cash Balance at the Beginning Of Period
    
58,156
   
39,723
 
Cash Balance at the End of the Period
  
$
45,384
  
$
45,384
  
 
4
 
PubliCARD, Inc.
(Debtor-In-Possession)
Statement Of Receipts And Disbursements
For the Period Ending September 30, 2007
 
     
Month Ended
September 30, 2007 
  
         
Disbursements
        
Checks Cut From Operating Account
  
$
-
  
Wires From Operating Account
    
-
 
Payments To Professionals
    
-
 
Voided Checks
    
-
 
Benefits
    
-
 
Payroll and Associated Taxes
    
12,445
 
Bank and Payroll fees
    
1,191
 
Taxes
    
-
 
Wires From Depository Account
    
-
 
Disbursements From Depository Account
    
-
 
Principal Repaments
    
-
 
Total Disbursements
  
$
13,636
  
         
Receipts
        
Interest Income
  
$
89
  
A/R Receipts
    
-
 
Insurance Settlements
    
-
 
Total Receipts
  
$
89
  
         
Net Inflow/(Outflow)
  
$
(13,547
)
 
5
 
PubliCARD, Inc.
        
(Debtor-In-Possession)
        
Disbursement List
        
For the Period Ending September 30, 2007
        
Disbursements
    
Month Ended
September 30, 2007 
  
Sarachek
    
7,500
 
Prior period payroll and processing
    
4,167
 
Payroll Processing
    
257
 
Payroll Taxes
    
778
 
Bank Fees
    
934
 
Total
  
$
13,636
  
 
6
 
                   
Bank Reconciliation
                    
 
Account
    
Bank
Balance 
    
Book
Balance 
    
Variance 
  
                     
2030000846371
  
$
45,384
  
$
45,384
  
$
-
  
                     
                     
Checks Outstanding
                    
Number
    
Payee
    
Amount
        
                     
Total
  
 
      $ -        
                     
                     
Deposits In Transit
                    
                     
                     
                     
Net Adjustments
        $ -        
                     
 
7
 
PubliCARD, Inc.
                    
(Debtor-In-Possession)
                    
Variance To Budget
                    
For the Period Ending September 30, 2007
                    
Accrual Basis                    
                     
     
Actual
September 30, 2007 
    
Projected
September 30, 2007 
    
Variance
September 30, 2007 
  
                     
Revenue
  
$
-
  
$
-
  
$
-
  
                     
                     
Operating Expenses
                    
                     
Wages, Consulting Fees and Payroll Taxes
    
22,155
   
12,258
   
(9,897
)(1)
Rent
    
3,764
   
3,750
   
(14
)
Insurance Expense
    
7,965
   
7,965
   
-
 
Office Expenses
    
2,674
   
4,000
   
1,326
 
Pre-petition claims
    
-
   
-
   
-
 
Other Expenses
    
2,301
   
4,000
   
1,699
 
Depreciation Of Fixed Assets
    
96
   
96
   
(0
)
                     
Total Operating Expenses
    
38,955
   
32,069
   
(6,886
)
                     
Operating Gain/(Loss)
    
(38,955
)
  
(32,069
)
  
6,886
 
                     
Other Expense/(Income)
                    
Interest Expense
    
-
   
-
   
-
 
Loss/(Gain) On The Sale Of Assets
    
-
   
-
   
-
 
Claim Settlement
    
-
   
-
   
-
 
Insurance Settlements
    
-
   
-
   
-
 
Interest Income
    
(89
)
  
-
   
89
 
                     
Gain/(Loss) Before Reorganizational Items and Taxes
    
(38,866
)
  
(32,069
)
  
6,797
 
                     
Reorganization Professional Fees (Estimated and Accrued)
    
6,000
   
6,000
   
-
 
U.S. Trustee Fees
    
500
   
-
   
-
 
                     
Gain/(Loss) Before Income Taxes
    
(45,366
)
  
(38,069
)
  
(7,297
)
                     
Provision For Income Taxes
    
-
   
-
   
-
 
                     
Net Income/(Loss)
  
$
(45,366
)
$
(38,069
)
$
(7,297
)
                     
 
(1) Prior period payroll not previously recorded was paid. Additionally, Mr. Sarachek's $7,500 per month deferred salary is included in this amount
 
8
 
       
(Debtor-In-Possession)
      
Budget
      
For the Period Ending September 30, 2007
      
Accrual Basis
     
   
Projected
  
   
October 31, 2007
  
        
Revenue
  
$
-
  
         
         
Operating Expenses
        
Wages and Payroll Taxes
    
19,600
 
Rent
    
4,000
 
Insurance Expense
    
10,000
 
Office Expenses
    
4,000
 
Other Expenses
    
4,000
 
Depreciation Of Fixed Assets
    
96
 
Total Operating Expenses
    
41,696
 
         
Operating Gain/(Loss)
    
(41,696
)
         
Other Expense/(Income)
        
Interest Expense
    
-
 
Loss/(Gain) On The Sale Of Assets
    
-
 
Claim Settlement
    
-
 
Insurance Settlements
    
-
 
Interest Income
    
-
 
         
Income/(Loss) Before Reorganizational Items and Taxes
    
(41,696
)
         
Reorganization Professional Fees (Estimated)
    
6,000
 
         
Income/(Loss) Before Income Taxes
    
(47,696
)
         
Provision For Income Taxes
    
-
 
         
Net Income/(Loss)
  
$
(47,696
)
 
9