EX-99.1 2 exhibit99-1.htm MONTHLY OPERATING REPORT DATED NOVEMBER 30, 2009 exhibit99-1.htm
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
                   
In re:  [CASE NAME]
ECO2 Plastics Inc.
      
   Case No.
  
09-33702 DM
    
 
A Delaware Corporation
              
         
   CHAPTER 11
        
         
   MONTHLY OPERATING REPORT
    
         
   (GENERAL BUSINESS CASE)
    
SUMMARY OF FINANCIAL STATUS
 
MONTH ENDED:
Nov-09
    
PETITION DATE:
  
11/24/09
    
1.
Debtor in possession (or trustee) hereby submits this Monthly Operating Report on the Accrual Basis of accounting (or if checked here
 
the Office of the U.S. Trustee or the Court has approved the Cash Basis of Accounting for the Debtor).
    
 
Dollars reported in
$1
              
2.
Asset and Liability Structure
    
End of Current Month
  
End of  Prior Month
  
As of  Petition Filing
 
a.  Current Assets
      
$319,577
        
 
b.  Total Assets
      
$1,719,577
      
$1,717,899
 
c.  Current Liabilities
      
$29,074
        
 
d.  Total Liabilities
      
$15,448,959
      
$15,419,884
3.
Statement of Cash Receipts & Disbursements for Month
Current Month
  
Prior Month
  
Cumulative
(Case to Date)
 
a.  Total Receipts
      
$0
      
$0
 
b.  Total Disbursements
    
$0
      
$0
 
c.  Excess (Deficiency) of Receipts Over Disbursements (a - b)
$0
  
$0
  
$0
 
d.  Cash Balance Beginning of Month
$5,678
      
$5,678
 
e.  Cash Balance End of Month (c + d)
$5,678
  
$0
  
$5,678
         
 Current Month
  
Prior Month
  
 Cumulative
(Case to Date)
4.
Profit/(Loss) from the Statement of Operations
($29,074)
      
($29,074)
5.
Account Receivables (Pre and Post Petition)
$177,755
        
6.
Post-Petition Liabilities
    
$29,074
        
7.
Past Due Post-Petition Account Payables (over 30 days)
$0
        
At the end of this reporting month:
        
Yes
  
No
8.
Have any payments been made on pre-petition debt, other than payments in the normal
    
x
 
course to secured creditors or lessors? (if yes, attach listing including date of
        
 
payment, amount of payment and name of payee)
          
9.
Have any payments been made to professionals?  (if yes, attach listing including date of
    
x
 
payment, amount of payment and name of payee)
          
10.
If the answer is yes to 8 or 9, were all such payments approved by the court?
      
x
11.
Have any payments been made to officers, insiders, shareholders, relatives?  (if yes,
    
x
 
attach listing including date of payment, amount and reason for payment, and name of payee)
    
12.
Is the estate insured for replacement cost of assets and for general liability? (market value)
x
    
13.
Are a plan and disclosure statement on file?
        
x
14.
Was there any post-petition borrowing during this reporting period?
      
x
15.
Check if paid: Post-petition taxes
  
;                            U.S. Trustee Quarterly Fees
  
;  Check if filing is current for: Post-petition
 
tax reporting and tax returns:
  
.
          
 
(Attach explanation, if post-petition taxes or U.S. Trustee Quarterly Fees are not paid current or if post-petition tax
 
reporting and tax return filings are not current.)
          
I declare under penalty of perjury I have reviewed the above summary and attached financial statements, and after making reasonable inquiry
believe these documents are correct.
              
Date:
1/5/2010 0:00
      
/s/ Rodney S. Rougelot
      
         
Responsible Individual
      
                   
 

 
 
 

STATEMENT OF OPERATIONS
(General Business Case)
  
For the Month Ended 11/30/09
Current Month
        
Actual
    
Forecast
    
Variance
              
Cumulative
(Case to Date)
    
Next Month
Forecast
  
                     
Revenues:
              
$ 0     $ 0     $ 0       1  
  Gross Sales
     $ 0        
$ 0     $ 0     $ 0       2  
  less: Sales Returns & Allowances
   $ 0        
$ 0     $ 0     $ 0       3  
  Net Sales
     $ 0     $ 0  
$ 0     $ 0     $ 0       4  
  less: Cost of Goods Sold             (Schedule 'B')
   $ 0          
$ 0     $ 0     $ 0       5  
  Gross Profit
     $ 0     $ 0  
$ 0     $ 0     $ 0       6  
  Interest
     $ 0          
$ 0     $ 0     $ 0       7  
  Other Income:
                  
                $ 0       8                      
                $ 0       9                      
$ 0     $ 0     $ 0       10  
      Total Revenues
     $ 0     $ 0  
                             
Expenses:
                  
$ 11,423             $ (11,423 )     11  
  Compensation to Owner(s)/Officer(s)
   $ 11,423     $ 25,385  
$ 15,698             $ (15,698 )     12  
  Salaries
     $ 15,698     $ 34,884  
                $ 0       13  
  Commissions
                  
                $ 0       14  
  Contract Labor
                  
                $ 0       15  
  Rent/Lease:
      Personal Property
           $ 1,500  
                $ 0       16  
      Real Property
             $ 32,284  
                $ 0       17  
  Insurance
             $ 18,373  
                $ 0       18  
  Management Fees
                
                $ 0       19  
  Depreciation
                  
$ 1,953             $ (1,953 )     20  
  Taxes:
      Employer Payroll Taxes
   $ 1,953     $ 5,786  
                $ 0       21  
      Real Property Taxes
                
                $ 0       22  
      Other Taxes
                  
                $ 0       23  
  Other Selling
                  
                $ 0       24  
  Other Administrative
                
                $ 0       25  
  Interest
             $ 16,436  
                $ 0       26  
  Other Expenses:
General
           $ 500  
                $ 0       27  
Utilities
             $ 6,000  
                $ 0       28  
Cool Clean Settlement
           $ 18,750  
                $ 0       29  
Employee Expenses
           $ 54,905  
                $ 0       30                      
                $ 0       31                      
                $ 0       32                      
                $ 0       33                      
                $ 0       34                      
$ 29,074     $ 0     $ (29,074 )     35  
      Total Expenses
     $ 29,074     $ 214,803  
$ (29,074 )   $ 0     $ (29,074 )     36  
Subtotal
     $ (29,074 )   $ (214,803 )
                $ 0       37  
Reorganization Items:
  Professional Fees
                
                $ 0       38  
  Provisions for Rejected Executory Contracts
   $ 0          
                $ 0       39  
  Interest Earned on Accumulated Cash from
   $ 0          
                             
  Resulting Chp 11 Case
     0          
                $ 0       40  
  Gain or (Loss) from Sale of Equipment
                
                $ 0       41  
  U.S. Trustee Quarterly Fees
                
                $ 0       42                      
$ 0     $ 0     $ 0       43  
       Total Reorganization Items
   $ 0     $ 0  
$ (29,074 )   $ 0     $ (29,074 )     44  
 Net Profit (Loss) Before Federal & State Taxes
   $ (29,074 )   $ (214,803 )
                $ 0       45  
  Federal & State Income Taxes
                
$ (29,074 )   $ 0     $ (29,074 )     46  
Net Profit (Loss)
   $ (29,074 )   $ (214,803 )
                                                 
Attach an Explanation of Variance to Statement of Operations (For variances greater than +/- 10% only):
                

 
 
 

BALANCE SHEET
  
(General Business Case)
  
For the Month Ended 11/30/09  
   
Assets
                
           
From Schedules
    
Market Value
  
   
Current Assets
              
  1    
Cash and cash equivalents - unrestricted
         $ 5,678  
  2    
Cash and cash equivalents - restricted
         $ 36,144  
  3    
Accounts receivable (net)
     A     $ 177,755  
  4    
Inventory
       B     $ 0  
  5    
Prepaid expenses
                  
  6    
Professional retainers
                
  7    
Other:
Honeywell License
           $ 100,000  
  8                        
  9      
Total Current Assets
           $ 319,577  
     
Property and Equipment (Market Value)
                
  10    
Real property
       C     $ 0  
  11    
Machinery and equipment
     D     $ 1,390,000  
  12    
Furniture and fixtures
     D          
  13    
Office equipment
       D     $ 10,000  
  14    
Leasehold improvements
     D     $ 0  
  15    
Vehicles
       D     $ 0  
  16    
Other:
       D          
  17             D          
  18             D          
  19             D          
  20             D          
  21      
Total Property and Equipment
           $ 1,400,000  
     
Other Assets
                  
  22    
Loans to shareholders
                
  23    
Loans to affiliates
                
  24                        
  25                        
  26                        
  27                        
  28      
Total Other Assets
           $ 0  
  29      
Total Assets
           $ 1,719,577 *
     
NOTE:
                    
       
Indicate the method used to estimate the market value of assets (e.g., appraisals; familiarity with comparable market
  
       
prices, etc.) and the date the value was determined.
                
       
* Differs from original filing due to noted error on cash balance.
          

 
 
 

SCHEDULES TO THE BALANCE SHEET
  
(General Business Case)
  
Schedule A
  
Accounts Receivable and (Net) Payable
  
Receivables and Payables Agings
          
Accounts Receivable
[Pre and Post Petition]
    
Accounts Payable
[Post Petition]
    
Past Due
Post Petition Debt
  
0 -30 Days
                       $ 0        
31-60 Days
                       $ 0        
61-90 Days
                 $ 22,218     $ 0     $ 0  
91+ Days
                 $ 155,537     $ 0          
Total accounts receivable/payable
           $ 177,755     $ 0          
Allowance for doubtful accounts
                                
Accounts receivable (net)
               $ 177,755                  
Schedule B
  
Inventory/Cost of Goods Sold
  
Types and Amount of Inventory(ies)
          
Cost of Goods Sold
                  
           
Inventory(ies)
Balance at
End of Month
    
Inventory Beginning of Month
       0  
                 
Add -
                  
Retail/Restaurants -
                
Net purchase
             $ 0  
  Product for resale
                
Direct labor
             $ 0  
                 
Manufacturing overhead
           $ 0  
Distribution -
                
Freight in
             $ 0  
  Products for resale
                
Other:
             $ 0  
                                       
Manufacturer -
                                      
  Raw Materials
                                      
  Work-in-progress
                
Less -
                  
  Finished goods
                
Inventory End of Month
           $ 0  
                 
Shrinkage
             $ 0  
Other - Explain
                
Personal Use
             $ 0  
                                       
                 
Cost of Goods Sold
             $ 0  
    TOTAL
           $ 0                          
                                         
Method of Inventory Control
            
Inventory Valuation Methods
          
Do you have a functioning perpetual inventory system?
    
Indicate by a checkmark method of inventory used.
  
Yes
No
     x                                  
How often do you take a complete physical inventory?
    
Valuation methods -
                  
                     
FIFO cost
                  
  Weekly
                    
LIFO cost
                  
  Monthly
x
                  
Lower of cost or market
                
  Quarterly
                    
Retail method
                  
  Semi-annually
                    
Other
                  
  Annually
                    
Explain
                  
Date of last physical inventory was
    
9/30/2009 0:00
                          
                                           
Date of next physical inventory is
                                  

 
 
 

Schedule C
Real Property
Description
    
Cost
  
Market Value
           
           
           
           
           
           
Total
   $
0
  
$0
           
Schedule D
Other Depreciable Assets
Description
    
Cost
  
Market Value
Machinery & Equipment -
          
Plastic Plant
        
$1,190,000
Assets for Sale
        
$200,000
           
           
Total
   $
0
  
$1,390,000
Furniture & Fixtures -
          
           
           
           
           
Total
   $
0
  
$0
Office Equipment -
          
         
$10,000
           
           
Total
   $
0
  
$10,000
Leasehold Improvements -
          
           
           
           
           
Total
   $
0
  
$0
Vehicles -
          
           
           
           
           
Total
   $
0
  
$0

 
 
 
 
Schedule E
  
Aging of Post-Petition Taxes
  
(As of End of the Current Reporting Period)
  
Taxes Payable
  
0-30 Days
    
31-60 Days
    
61-90 Days
    
91+ Days
    
Total
  
Federal
                              
Income Tax Withholding
                           $ 0  
FICA - Employee
                           $ 0  
FICA - Employer
                           $ 0  
Unemployment (FUTA)
                           $ 0  
Income
                           $ 0  
Other (Attach List)
                           $ 0  
Total Federal Taxes
   $ 0     $ 0     $ 0     $ 0     $ 0  
State and Local
                                        
Income Tax Withholding
                                   $ 0  
Unemployment (UT)
                                   $ 0  
Disability Insurance (DI)
                                   $ 0  
Empl. Training Tax (ETT)
                                   $ 0  
Sales
                                   $ 0  
Excise
                                   $ 0  
Real property
                                   $ 0  
Personal property
                                   $ 0  
Income
                                   $ 0  
Other (Attach List)
                                   $ 0  
Total State & Local Taxes
   $ 0     $ 0     $ 0     $ 0     $ 0  
Total Taxes
   $ 0     $ 0     $ 0     $ 0     $ 0  
Schedule F
  
Pre-Petition Liabilities
  
List Total Claims For Each Classification -
                  
Claimed
Amount
    
Allowed
Amount (b)
          
Secured claims  (a)
                   $ 12,403,473     $ 12,403,473          
Priority claims other than taxes
                   $ 115,343     $ 32,700          
Priority tax claims
                   $ 206,011     $ 206,011          
General unsecured claims
                   $ 2,695,058     $ 2,777,701          
(a) List total amount of claims even it under secured.
                                  
(b) Estimated amount of claim to be allowed after compromise or litigation. As an example, you are a defendant in a lawsuit
  
alleging damage of $10,000,000 and a proof of claim is filed in that amount. You believe that you can settle the case for a
  
claim of $3,000,000. For Schedule F reporting purposes you should list $10,000,000 as the Claimed Amount and
  
$3,000,000 as the Allowed Amount.
                                  
Schedule G
Rental Income Information
Not applicable to General Business Cases
  
Schedule H
Recapitulation of Funds Held at End of Month
  
   
Account 1
    
Account 2
    
Account 3
    
Account 4
          
Bank
  
Wells Fargo
    
Wells Fargo
                          
Account Type
  
Checking
    
Savings
                          
Account No.
  
XXXXXXXX
    
XXXXXXXX
                          
Account Purpose
  
operations
                                  
Balance, End of Month
   $ 5,000     $ 678                          
Total Funds on Hand for all Accounts
   $ 5,678                                  
Attach copies of the month end bank statement(s), reconciliation(s), and the check register(s) to the Monthly Operating Report.
  


 
 
 

STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
  
Increase/(Decrease) in Cash and Cash Equivalents
  
  For the Month Ended 11/30/09
         
Actual
Current Month
    
Cumulative
(Case to Date)
  
   
Cash Receipts
              
  1  
Rent/Leases Collected
     $ 0     $ 0  
  2  
Cash Received from Sales
     $ 0     $ 0  
  3  
Interest Received
     $ 0     $ 0  
  4  
Borrowings
     $ 0     $ 0  
  5  
Funds from Shareholders, Partners, or Other Insiders
     $ 0     $ 0  
  6  
Capital Contributions
     $ 0     $ 0  
  7                      
  8                      
  9                      
  10                      
  11                      
  12  
Total Cash Receipts
     $ 0     $ 0  
     
Cash Disbursements
                  
  13  
Payments for Inventory
       0       0  
  14  
Selling
     $ 0     $ 0  
  15  
Administrative
     $ 0     $ 0  
  16  
Capital Expenditures
     $ 0     $ 0  
  17  
Principal Payments on Debt
     $ 0     $ 0  
  18  
Interest Paid
     $ 0     $ 0  
     
Rent/Lease:
     $ 0     $ 0  
  19  
Personal Property
     $ 0     $ 0  
  20  
Real Property
     $ 0     $ 0  
     
Amount Paid to Owner(s)/Officer(s)
     $ 0     $ 0  
  21  
Salaries
     $ 0     $ 0  
  22  
Draws
     $ 0     $ 0  
  23  
Commissions/Royalties
     $ 0     $ 0  
  24  
Expense Reimbursements
     $ 0     $ 0  
  25  
Other
     $ 0     $ 0  
  26  
Salaries/Commissions (less employee withholding)
     $ 0     $ 0  
  27  
Management Fees
     $ 0     $ 0  
     
Taxes:
     $ 0     $ 0  
  28  
Employee Withholding
     $ 0     $ 0  
  29  
Employer Payroll Taxes
     $ 0     $ 0  
  30  
Real Property Taxes
     $ 0     $ 0  
  31  
Other Taxes
     $ 0     $ 0  
  32  
Other Cash Outflows:
     $ 0     $ 0  
  33  
Legal Fees
                  
  34                      
  35                      
  36                      
  37                      
  38  
Total Cash Disbursements:
     $ 0     $ 0  
  39  
Net Increase (Decrease) in Cash
     $ 0     $ 0  
  40  
Cash Balance, Beginning of Period
     $ 5,678 *   $ 5,678  
  41  
Cash Balance, End of Period
     $ 5,678     $ 5,678  
                         
     
* Differs from amount listed on bankruptcy filing due to error.