-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ekxip4LjELSmb3qjgEJRHBB4Ks2lUvprovdQatNALeXeoluLVGBo8MKqMMK2J/R0 Li5QITYjUqCvD23choX+9g== 0000950147-01-502008.txt : 20020412 0000950147-01-502008.hdr.sgml : 20020412 ACCESSION NUMBER: 0000950147-01-502008 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20011128 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20011206 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TESSERACT GROUP INC CENTRAL INDEX KEY: 0000873601 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EDUCATIONAL SERVICES [8200] IRS NUMBER: 411581297 STATE OF INCORPORATION: MN FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11111 FILM NUMBER: 1808152 BUSINESS ADDRESS: STREET 1: 4111 E RAY RD CITY: PHOENIX STATE: AZ ZIP: 85048 BUSINESS PHONE: 4809406300 MAIL ADDRESS: STREET 1: 4111 E RAY RD CITY: PHOENIX STATE: AZ ZIP: 85048 FORMER COMPANY: FORMER CONFORMED NAME: EDUCATION ALTERNATIVES INC/MN DATE OF NAME CHANGE: 19930328 8-K 1 e-7837.txt CURRENT REPORT DATED 11-28-2001 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) November 28, 2001 THE TESSERACT GROUP, INC. (Exact name of registrant as specified in its charter) Minnesota 1-11111 41-1581297 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 4111 East Ray Road Phoenix, Arizona 85048 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (480) 940-6300 -------------------------------------------------------------- (Former name or former address, if changed since last report.) ITEM 5. OTHER EVENTS As previously disclosed, The TesseracT Group, Inc. and its wholly owned subsidiary, Sunrise Educational Services, Inc. ("Sunrise") filed for reorganization under Chapter 11 of the United States Bankruptcy Code on October 6, 2000. Monthly Operating Reports for August, September and October 2001 as filed with the United States Bankruptcy Court for the District of Arizona for The TesseracT Group, Inc. and Sunrise are attached hereto as Exhibits 99.1, 99.2, 99.3, 99.4, 99.5 and 99.6. ITEM 7. FINANCIAL STATEMENTS; EXHIBITS. Exhibit No. ----------- 99.1 Monthly Operating Report of The TesseracT Group, Inc. for August 2001. 99.2 Monthly Operating Report of Sunrise for August 2001. 99.3 Monthly Operating Report of The TesseracT Group, Inc. for September 2001. 99.4 Monthly Operating Report of Sunrise for September 2001. 99.5 Monthly Operating Report of The TesseracT Group, Inc. for October 2001. 99.6 Monthly Operating Report of Sunrise for October 2001. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. THE TESSERACT GROUP, INC. Dated: November 30, 2001 By: /s/ Douglass E. Snell ------------------------------------- Douglass E. Snell Controller 2 EX-99.1 3 ex99-1.txt TESSERACT AUGUST 2001 OPERATING REPORT Exhibit 99.1 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF ARIZONA In re: ) CASE NO. B-00-10938-ECF-RTB ) THE TESSERACT GROUP, INC. ) BUSINESS AND INDUSTRY ) MONTHLY OPERATING REPORT ) ) MONTH OF AUGUST ) Debtor(s) ) DATE PETITION FILED: October 6, 2000 ) ) TAX PAYER ID NO. 4101581297 Nature of Debtor's Business: For Profit Educational Services DATE DISCLOSURE STATEMENT: FILED Not Yet Filed TO BE FILED To Be Determined ------------- ---------------- DATE PLAN OF REORGANIZATION: FILED Not Yet Filed TO BE FILED To Be Determined ------------- ---------------- I CERTIFY UNDER PENALTY OF PERJURY THAT THE FOLLOWING MONTHLY OPERATING REPORT AND THE ACCOMPANYING ATTACHMENTS ARE TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE. RESPONSIBLE PARTY: CEO - ---------------------------------------- ---------- ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE Michael Lynch - ---------------------------------------- ---------- PRINTED NAME OF RESPONSIBLE PARTY DATE PREPARER: Controller - ---------------------------------------- ---------- ORIGINAL SIGNATURE OF PREPARER TITLE Douglass E. Snell - ---------------------------------------- ---------- PRINTED NAME OF PREPARER DATE PERSON TO CONTACT REGARDING THIS REPORT: Douglass E. Snell --------------------------------------- PHONE NUMBER: 602-300-6257 --------------------------------------- ADDRESS: 1777 W. Camelback Rd., J109 Phoenix, AZ 85015 --------------------------------------- ORIGINAL OF REPORT IS FILED WITH THE COURT, COPY IS FILED WITH U.S. TRUSTEE'S OFFICE THE TESSERACT GROUP, INC. B-00-10938-ECF-RTB MONTH: AUGUST 2001 RECEIPTS AND DISBURSEMENTS
BANK ACCOUNTS ----------------------------------------------------------------------------------------------- Amounts reported should be NATIONAL GROUP GROUP GROUP TESSERACT GROUP TESSERACT per the debtor's books, DEPOSITORY DEPOSITORY MEDICAL PAYROLL OPERATING CHARTER not per the bank statement #944-010-7759 #022-922-6741 #022-922-6576 #022-922-6576 #022-978-8101 #022-922-6808 ------------- ------------- ------------- ------------- ------------- ------------- ACCOUNT BALANCE - BEGINNING OF MONTH -- 2,818,770.34 -- -- -- 6,459.76 RECEIPTS STUDENT FEES 316,651.52 327.00 CHARTER SCHOOL REVENUE -- ACCOUNTS RECEIVABLE -- INTEREST 808.21 SALE OF ASSETS TRANSFERS IN FROM OTHER ACCOUNTS 316,651.52 -- 422,933.06 248,565.50 -- OTHER (ATTACH LIST) TOTAL RECEIPTS 316,651.52 317,786.73 -- 422,933.06 248,565.50 -- DISBURSEMENTS BUSINESS - ORDINARY OPERATIONS -- 12,843.82 -- 86,760.31 133,433.69 6,351.75 CAPITAL IMPROVEMENTS PRE-PETITION DEBT TRANSFERS TO OTHER DIP ACCOUNTS 316,651.52 1,256,558.56 -- PAYMENTS MADE FOR SUNRISE EDU. 326,632.67 336,232.75 115,131.81 OTHER (VOIDS) REORGANIZATION EXPENSES: ATTORNEY FEES ACCOUNTANT FEES OTHER PROFESSIONAL FEES U.S. TRUSTEE QUARTERLY FEE COURT COSTS TOTAL DISBURSEMENTS 316,651.52 1,596,035.05 -- 422,993.06 248,565.50 6,351.75 ------------ ------------- ----------- ------------ ------------ ------------- ACCOUNT BALANCE - END OF MONTH -- 1,540,522.02 -- -- -- 108.01 ============ ============= =========== ============ ============ ============= BANK ACCOUNTS ------------------------------------------------------------------------------------- Amounts reported should be CHARTER FIRST FEDERAL CREDITOR per the debtor's books, EXTRACURRICULAR CREDIT UNION RESERVE NE CAPITAL not per the bank statement #022-922-7442 #4002-0270-922 #052-980-2118 RESERVE TOTAL ------------- -------------- ------------- ---------------- ---------------- ACCOUNT BALANCE - BEGINNING OF MONTH -- -- 417,731.01 -- 3,242,961.11 RECEIPTS STUDENT FEES 316,978.52 CHARTER SCHOOL REVENUE -- ACCOUNTS RECEIVABLE -- INTEREST 493.44 1,301.65 SALE OF ASSETS -- -- TRANSFERS IN FROM OTHER ACCOUNTS 585,000.00 1,573,210.08 OTHER (ATTACH LIST) -- TOTAL RECEIPTS -- -- 493.44 585,000.00 1,891,490.25 DISBURSEMENTS BUSINESS - ORDINARY OPERATIONS 239,389.57 CAPITAL IMPROVEMENTS -- PRE-PETITION DEBT -- TRANSFERS TO OTHER DIP ACCOUNTS -- 1,573,210.08 PAYMENTS MADE FOR SUNRISE EDU 777,997.23 OTHER (VOIDS) -- REORGANIZATION EXPENSES: ATTORNEY FEES -- ACCOUNTANT FEES -- OTHER PROFESSIONAL FEES -- U.S. TRUSTEE QUARTERLY FEE -- COURT COSTS -- TOTAL DISBURSEMENTS -- -- -- -- 2,590,596.88 ------------ ------------- ------------- ------------- ------------- ACCOUNT BALANCE - END OF MONTH -- -- 418,224.45 585,000.00 2,543,854.48 ============ ============= ============= ============= ============= THE FOLLOWING SECTION MUST BE FILLED OUT DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: TOTAL DISBURSEMENTS FROM ABOVE 2,590,596.88 LESS: TRANSFERS OUT TO OTHER DIP ACCOUNTS (1,573,210.08) LESS: PAYMENTS MADE FOR SUNRISE EDUCATIONAL SERVICES, INC. (777,997.23) PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. PAYMENTS FROM ESCROW OR 2-PARTY CHECKS) ---------------- TOTAL DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: 239,389.57 ================
2 THE TESSERACT GROUP (EXCL. SUNRISE) STATEMENT OF OPERATIONS FOR THE MONTH ENDING AUGUST 31, 2001 REVENUE Tuition and Fees Revenue $ -- Refunds/Returns (1,908.12) Discounts -- ------------ Total Revenue (1,908.12) ------------ OPERATIONAL COSTS Salaries and Wages 21,076.76 Taxes and Benefits 5,639.08 Food Programs Expense 5,602.84 Maintenance Expense 17,585.80 Insurance Expense 2,929.77 Rent Expense 2,982.70 Utilities Expense -- ------------ Total Operational Costs 55,816.95 ------------ GENERAL & ADMINISTRATIVE COSTS Bank Charges/Processing Fees-A 112.60 Corporate Overhead 92,772.09 Corporate Overhead Allocated to Sunrise (46,386.00) Other Expenses -- ------------ Total General and Administrative Expenses 46,498.69 ------------ Other Income 14,552.19 Interest Expense (82,993.30) ------------ Net Interest and Other Income (Expense) (68,441.11) ------------ Reorganization Expenses Professional Fees 103,694.63 Professional Fees Allocated to Sunrise (51,847.00) ------------ Total Reorganization Expenses 51,847.63 ------------ Net Income $(224,512.50) ============ 3 THE TESSERACT GROUP (EXCL. SUNRISE) BALANCE SHEET AUGUST 31, 2001 ASSETS Current Assets Cash and Cash Equivalents $ 2,277,711.48 Accounts Receivable, net 1,841.67 Note Receivable from Nobel -- Prepaid Rent 6,400.00 Other Prepaid Expenses -- -------------- Total Current Assets 2,285,953.15 Investment in Sunrise 18,971,824.26 Property and Equipment, net -- Deposits and Other Assets 1,512,992.80 -------------- Total Assets $22,770,770.21 ============== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable $ 11,648.49 Accrued Payroll and Benefits 1,029,600.08 Accrued Payroll Taxes -- Deferred Revenue and Tuition Deposits 885,140.74 -------------- Total Current Liabilities 1,926,389.31 -------------- Pre-Petition Liabilities Line of Credit 5,848,822.65 Accounts Payable 3,989,797.38 Other Unsecured Notes Payable 865,500.00 Other Current Liabilities 4,540,257.35 Long-Term Debt 1,696,967.85 -------------- Total Pre-Petition Liabilities 16,941,345.23 -------------- Due to Sunrise 3,076,509.41 Reserve for Closed Schools 504,099.10 Other Long-Term Obligations 13,999.76 -------------- Total Long-Term Liabilities 3,594,608.27 -------------- Total Liabilities 22,462,342.81 -------------- Shareholders' Equity Pre-Petition Shareholders' Equity 5,335,805.21 Post Petition Retained Deficit (5,027,377.81) -------------- Total Shareholders' Equity 308,427.40 -------------- Total Liabilities and Shareholders' Equity $22,770,770.21 ============== 4 CASE NUMBER: B-00-10938-ECF-RTB STATUS OF ASSETS 0-30 31-60 60+ ACCOUNTS RECEIVABLE TOTAL DAYS DAYS DAYS - ------------------- ----- ---- ---- ---- TOTAL ACCOUNTS RECEIVABLE 1,842 1,842 -- -- LESS: AMOUNT CONSIDERED UNCOLLECTIBLE -- -- ACCOUNTS RECEIVABLE (NET) 1,842 1,842 -- -- SCHEDULED CURRENT FIXED ASSETS AMOUNT ADDITIONS DELETIONS AMOUNT - ------------ --------- --------- --------- ------ REAL PROPERTY 1,867,408 1,867,408 (0) BUILDING IMPROVEMENTS/PLANT 846,395 16,066 862,461 (0) ACCUMULATED DEPRECIATION (136,823) (33,112) (169,935) 0 NET BUILDINGS/PLANT 709,573 (17,047) 692,526 (0) EQUIPMENT 5,466,149 11,637 5,477,786 (0) ACCUMULATED DEPRECIATION (2,404,930) (533,426) (2,938,357) 0 NET EQUIPMENT 3,061,218 (521,789) 2,539,429 (0) AUTOS & VEHICLES 557,586 557,586 -- ACCUMULATED DEPRECIATION (259,791) (65,272) (325,063) 0 NET AUTOS & VEHICLES 297,795 (65,272) 232,523 0 NOTE: Reduction in assets due to sale of Private and Charter School assets. 5 CASE NUMBER: B-00-10938-ECF-RTB STATUS OF LIABILITIES AND SENSITIVE PAYMENTS POSTPETITION UNPAID OBLIGATIONS TOTAL 0-30 31-60 61-90 91+ ------------------ --------- --------- ----- ----- ------ ACCOUNTS PAYABLE 11,648 (2,286) -- -- 13,935 TAXES PAYABLE 5,348 5,348 ACCRUED SALARIES AND BENEFITS 1,029,600 1,029,600 PREPAID TUITION AND DEPOSITS 885,141 885,141 SECURED DEBT OTHER (ATTACH LIST) --------- --------- ----- ----- ------ TOTAL POST-PETITION LIABILITIES 1,931,737 1,917,802 -- -- 13,935 ========= ========= ===== ===== ====== PAYMENTS TO INSIDERS AND PROFESSIONALS INSIDERS AMOUNT PD TOTAL PD NAME REASON FOR PAYMENT THIS MONTH TO DATE - ---- ------------------ ---------- ---------- Lucian Spataro Wages and Exp. Reimbursement -- 129,134.79 Ernie Recsetar Wages -- 22,000.00 Michael Lynch Wages and Exp. Reimbursement 15,770.60 169,434.08 Gary Lilyquist Wages and Exp. Reimbursement -- 80,239.99 --------- ---------- TOTAL PAYMENTS TO INSIDERS 15,770.60 400,808.86 ========= ========== PROFESSIONALS
DATE OF COURT TOTAL ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED NAME PAYMENT APPROVED PAID TO DATE & UNPAID - ---- ------- -------- ---- ------- -------- Bryan Cave 59,807.61 59,807.61 226,784.47 Engleman & Berger, PC 5,792.20 5,792.20 87,882.08
6 CASE NUMBER: B-00-10938-ECF-RTB CASE STATUS QUESTIONNAIRE YES NO --- -- HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT? NO ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES? NO ARE ANY WAGE PAYMENTS PAST DUE? NO ARE ANY U.S. TRUSTEE QUARTERLY FEES DELINQUENT? NO CURRENT NUMBER OF EMPLOYEES: 6 INSURANCE CARRIER AND PERIOD EXPIRATION PAYMENT AMOUNT TYPE OF POLICY POLICY NUMBER COVERED DATE & FREQUENCY - -------------- ------------- ------- ---- ----------- WHAT STEPS HAVE BEEN TAKEN TO REMEDY ANY OF THE PROBLEMS THAT BROUGHT ABOUT THE CHAPTER 11 FILING? LIST ANY MATTERS THAT ARE DELAYING THE FILING OF A PLAN OF REORGANIZATION? 7 THE TESSERACT GROUP, INC. CONSOLIDATED CASH FLOW ANALYSIS TOTAL FOR AUGUST 2001 ------------- BEGINNING FUNDS AVAILABLE: $3,242,961.11 ------------- Cash In: Telecheck $ 327.00 Credit Card Deposit (Preschools) 12,201.30 Credit Card Deposit (Private) -- Credit Card Deposit (Charter) -- Regular Deposits (Preschools) 287,342.15 Regular Deposits (Private) 520.30 Regular Deposits (Charter) 1,461.38 Regular Deposits (Corporate) 18,269.07 Other Deposit (Preschool) -- Interest 1,301.65 Interest on LTC Acct -- Voids -- ------------- Daily Cash In: $ 321,422.85 ============= Cash Out: Preschool A/P $ 326,632.67 Charter A/P 6,351.75 Private A/P 18,301.87 Corporate A/P 230,263.63 TesseracT Payroll 72,287.03 Preschool Payroll 336,232.75 Charter Payroll 14,473.28 College PR -- Preschool NSF 3,142.68 Medical Claims -- Banking Fees 12,843.82 LTC Payment -- LTC Fees -- ------------- Daily Cash Out: $1,020,529.48 ============= Net Cash In/Out: $ (699,106.63) ------------- ENDING FUNDS AVAILABLE: $2,543,854.48 ============= 8 THE TESSERACT GROUP, INC. CASH FLOW ANALYSIS B-00-10938-ECF-RTB BEGINNING FUNDS AVAILABLE: $ 42,311.06 -------------- Cash In: Credit Card Deposit (Private) -- Credit Card Deposit (Charter) -- Regular Deposits (Private) 520.30 Regular Deposits (Charter) 1,461.38 Regular Deposits (Corporate) 18,269.07 Interest 1,301.65 -------------- Daily Cash In: $ 21,552.40 ============== Cash Out: Charter A/P 6,351.75 Private A/P 18,301.87 Corporate A/P 230,263.63 Corporate A/P (allocated to Sunrise) (115,131.82) TesseracT Payroll 72,287.03 Charter Payroll 14,473.28 Medical Claims -- Banking Fees 12,843.82 LTC Payment -- Voids -- -------------- Daily Cash Out: $ 239,389.56 ============== Net Cash In/Out: $ (217,837.16) -------------- ENDING FUNDS AVAILABLE: $ (175,526.10) ============== 9 CORPORATE COMPANY VENDOR CHECK REGISTER REPORT PAYABLES MANAGEMENT * Voided Checks
AUDIT CHECK NUMBER VENDOR ID VENDOR CHECK NAME CHECK DATE CHECKBOOK ID TRAIL CODE AMOUNT - ------------ --------- ----------------- ---------- ------------ ---------- ------ 200012990 CAVBRY000-B BRYAN CAVE LLP 8/1/2001 OPERATING2 PMCHK00000298 $59,807.61 200012991 CT0COR000-B CT CORPORATION SYSTEM 8/3/2001 OPERATING2 PMCHK00000299 $530.00 200012992 FEDEXP000-B FEDERAL EXPRESS 8/3/2001 OPERATING2 PMCHK00000299 $122.72 200012993 SNELDO000-B DOUG SNELL 8/3/2001 OPERATING2 PMCHK00000299 $1,031.20 200012994 THEHAR000-B THE HARTFORD 8/3/2001 OPERATING2 PMCHK00000299 $7,753.16 200012995 WELFAR003-B WELLS FARGO (MN) 8/3/2001 OPERATING2 PMCHK00000299 $731.29 200012996 RIVJUD000-B JUDI RIVERA 8/6/2001 OPERATING2 PMCHK00000300 $400.00 200012997 CIGNA000-B CIGNA 8/6/2001 OPERATING2 PMCHK00000301 $2,636.46 200012998 CONGEN000-B CONNECTICUT GENERAL LIFE 8/6/2001 OPERATING2 PMCHK00000301 $43,737.70 200012999 CONGENLIF-B CONNECTICUT GENERAL LIFE-DENT 8/6/2001 OPERATING2 PMCHK00000301 $1,001.43 200013000 MAN FIN000-B MANULIFE FINANCIAL 8/6/2001 OPERATING2 PMCHK00000301 $3,323.22 200013001 BONJAM000-B JAMES BONFIGLIO 8/7/2001 OPERATING2 PMCHK00000302 $2,925.00 200013002 FEDEXP000-B FEDERAL EXPRESS 8/7/2001 OPERATING2 PMCHK00000302 $367.80 200013003 LYN000000-B LYNCH,MICHAEL 8/7/2001 OPERATING2 PMCHK00000302 $291.25 200013004 CHAKRI000-B KRISTIE CHAN 8/8/2001 OPERATING2 PMCHK00000303 $160.00 200013005 KUTROC000-B KUTAK ROCK 8/9/2001 OPERATING2 PMCHK00000304 $197.50 200013006 MAN FIN000-B MANULIFE FINANCIAL 8/9/2001 OPERATING2 PMCHK00000304 $1,137.18 200013007 TAHINC000-B TAHER, INC 8/9/2001 OPERATING2 PMCHK00000304 $5,602.84 200013008 ST.GEO000-B ST. GEORGE FELLOWSHIP HALL 8/13/2001 OPERATING2 PMCHK00000305 $2,982.70 200013009 ARC000000-B ARC 8/14/2001 OPERATING2 PMCHK00000306 $67.68 200013010 FENJAN000-B JANE FENNELLY 8/14/2001 OPERATING2 PMCHK00000306 $656.89 200013011 ENGBER000-B ENGELMAN BERGER,P.C. 8/16/2001 OPERATING2 PMCHK00000307 $5,792.20 200013012 MARWEE000-B MARISCAL,WEEKS,MCINTYRE 8/16/2001 OPERATING2 PMCHK00000307 $29,532.32 200013013 FEDEXP000-B FEDERAL EXPRESS 8/21/2001 OPERATING2 PMCHK00000308 $269.30 200013014 IMPFIN000-B IMPERIAL FINANCIAL PRINTING 8/21/2001 OPERATING2 PMCHK00000308 $564.00 200013015 SPEINC000-B SPECTERA, INC. 8/21/2001 OPERATING2 PMCHK00000308 $908.30 200013016 IMPFIN000-B IMPERIAL FINANCIAL PRINTING 8/22/2001 OPERATING2 PMCHK00000309 $190.00 200013017 MAN FIN000-B MANULIFE FINANCIAL 8/22/2001 OPERATING2 PMCHK00000309 $1,137.18 200013018 LYN000000-B LYNCH,MICHAEL 8/22/2001 OPERATING2 PMCHK00000310 $970.64 200013019 KP0LIM000-B KP LIMITED INC 8/22/2001 OPERATING2 PMCHK00000311 $4,112.33 200013020 KP0LIM000-B KP LIMITED INC 8/22/2001 OPERATING2 PMCHK00000311 $4,801.00 200013021 KP0LIM000-B KP LIMITED INC 8/22/2001 OPERATING2 PMCHK00000311 $4,168.37 200013022 KP0LIM000-B KP LIMITED INC 8/22/2001 OPERATING2 PMCHK00000311 $2,922.35 200013023 CIGEMP000-B CIGNA EMPLOYEE BENE-PPO 8/24/2001 OPERATING2 PMCHK00000312 $2,306.90 200013024 CONGEN000-B CONNECTICUT GENERAL LIFE 8/24/2001 OPERATING2 PMCHK00000312 $39,078.48 200013025 CONGENLIF-B CONNECTICUT GENERAL LIFE-DENT 8/24/2001 OPERATING2 PMCHK00000312 $2,877.08 200013026 AA AMRDEV000-B AA AMERICNA DEVELOPMENT CORP 8/27/2001 OPERATING2 PMCHK00000313 $6,400.00 200013027 FEDEXP000-B FEDERAL EXPRESS 8/27/2001 OPERATING2 PMCHK00000313 $84.71 200013028 KUTROC000-B KUTAK ROCK 8/27/2001 OPERATING2 PMCHK00000313 $440.00 200013029 RIVJUD000-B JUDI RIVERA 8/27/2001 OPERATING2 PMCHK00000313 $350.00 200013030 ARC000000-B ARC 8/28/2001 OPERATING2 PMCHK00000314 $4,020.38 200013031 FEDEXP000-B FEDERAL EXPRESS 8/28/2001 OPERATING2 PMCHK00000314 $49.66 200013032 FEDEXP000-B FEDERAL EXPRESS 8/28/2001 OPERATING2 PMCHK00000314 $47.32 200013033 WELFAR003-B WELLS FARGO (MN) 8/28/2001 OPERATING2 PMCHK00000314 $741.90 200013034 LYN000000-B LYNCH,MICHAEL 8/28/2001 OPERATING2 PMCHK00000315 $347.17 200013035 LYN000000-B LYNCH,MICHAEL 8/30/2001 OPERATING2 PMCHK00000316 $700.00 200013037 NOPOOO000-B MIKE NOPPENBERG 8/31/2001 OPERATING2 PMCHK00000318 $290.28 REMIT000000000000109 EDUCOR000-B EDUCORP PROPERTIES, INC 8/16/2001 PMCHK00000307 $0.00 REMIT000000000000110 EDUINV000-B EDUCATION PROPERTY INVESTORS 8/16/2001 PMCHK00000307 $0.00 REMIT000000000000111 SILGOL000-B SILVER GOLUB & TEITELL 8/16/2001 PMCHK00000307 $0.00 ----------- Total Checks: 50 Total Amount of Checks: $248,565.50 ===========
10 OWNED CHARTERS VENDOR CHECK REGISTER REPORT PAYABLES MANAGEMENT * Voided Checks
AUDIT CHECK NUMBER VENDOR ID VENDOR CHECK NAME CHECK DATE CHECKBOOK ID TRAIL CODE AMOUNT - ------------ --------- ----------------- ---------- ------------ ---------- ------ 800050526 THEREH000-B THERAPY REHABILITATION SERVICE 8/9/2001 OPERATING PMCHK00000090 $4,770.00 800050527 KP0LIM000-B KP LIMITED INC 8/22/2001 OPERATING PMCHK00000091 $1,581.75 REMIT000000000000002 AT&T78522-B AT&T - 78522 8/9/2001 PMCHK00000090 $0.00 --------- Total Checks: 3 Total Amount of Checks: $6,351.75 =========
11 EX-99.2 4 ex99-2.txt SUNRISE AUGUST 2001 MONTHLY REPORT Exhibit 99.2 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF ARIZONA In re: ) CASE NO. B-00-10939-ECF-RTB ) SUNRISE EDUCATIONAL SERVICES ) BUSINESS AND INDUSTRY ) MONTHLY OPERATING REPORT ) ) MONTH OF AUGUST ) Debtor(s) ) DATE PETITION FILED: October 6, 2000 ) ) TAX PAYER ID NO. 4101581297 Nature of Debtor's Business: For Profit Educational Services DATE DISCLOSURE STATEMENT: FILED Not Yet Filed TO BE FILED To Be Determined ------------- ---------------- DATE PLAN OF REORGANIZATION: FILED Not Yet Filed TO BE FILED To Be Determined ------------- ---------------- I CERTIFY UNDER PENALTY OF PERJURY THAT THE FOLLOWING MONTHLY OPERATING REPORT AND THE ACCOMPANYING ATTACHMENTS ARE TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE. RESPONSIBLE PARTY: CEO - --------------------------------------- ---------- ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE Michael Lynch - --------------------------------------- ---------- PRINTED NAME OF RESPONSIBLE PARTY DATE PREPARER: Controller - --------------------------------------- ---------- ORIGINAL SIGNATURE OF PREPARER TITLE Douglass E. Snell - --------------------------------------- ---------- PRINTED NAME OF PREPARER DATE PERSON TO CONTACT REGARDING THIS REPORT: Douglass E. Snell --------------------------------------- PHONE NUMBER: 602-300-6257 --------------------------------------- ADDRESS: 1777 W. Camelback Rd., J109 Phoenix, AZ 85015 --------------------------------------- ORIGINAL OF REPORT IS FILED WITH THE COURT, COPY IS FILED WITH U.S. TRUSTEE'S OFFICE SUNRISE EDUCATIONAL SERVICES, INC. B-00-10939-ECF-RTB MONTH: AUGUST 2001 RECEIPTS AND DISBURSEMENTS BANK ACCOUNTS ----------------------------------------- Amounts reported should be SUNRISE SUNRISE PMTS per the debtor's books, OPERATING MADE BY not per the bank statement #052-978-7889 TESSERACT TOTAL ------------- ------------ ----------- ACCOUNT BALANCE - BEGINNING OF MONTH -- -- RECEIPTS STUDENT FEES -- CHARTER SCHOOL REVENUE -- ACCOUNTS RECEIVABLE -- LOANS AND ADVANCES -- SALE OF ASSETS -- TRANSFERS IN FROM OTHER ACCOUNTS 326,632.67 451,364.56 777,997.23 OTHER (ATTACH LIST) -- TOTAL RECEIPTS 326,632.67 451.364.56 777,997.23 DISBURSEMENTS BUSINESS - ORDINARY OPERATIONS 326,632.67 326,632.67 CAPITAL IMPROVEMENTS -- PRE-PETITION DEBT -- TRANSFERS TO OTHER DIP ACCOUNTS -- PAYMENTS MADE FOR SUNRISE EDU 451,364.56 451,364.56 OTHER (ATTACH LIST) -- REORGANIZATION EXPENSES: ATTORNEY FEES -- ACCOUNTANT FEES -- OTHER PROFESSIONAL FEES -- U.S. TRUSTEE QUARTERLY FEE -- COURT COSTS -- TOTAL DISBURSEMENTS 326,632.67 451,364.56 777,997.23 ----------- ----------- ----------- ACCOUNT BALANCE - END OF MONTH -- -- -- =========== =========== =========== THE FOLLOWING SECTION MUST BE FILLED OUT DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: TOTAL DISBURSEMENTS FROM ABOVE 777,997.23 LESS: TRANSFERS OUT TO OTHER DIP ACCOUNTS -- PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES ---------- TOTAL DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: 777,997.23 ========== 2 SUNRISE EDUCATIONAL SERVICES, INC. STATEMENT OF OPERATIONS FOR THE MONTH ENDING AUGUST 31, 2001 REVENUE Tuition and Fees Revenue $ -- Government Revenue 1,268.81 Refunds/Returns -- ------------ Total Revenue 1,268.81 ------------ OPERATIONAL COSTS Taxes and Benefits 62,656.30 Food Programs Expense (86.51) Transportation Expenses 3,310.72 Maintenance Expense 19,667.48 Insurance Expense 329.56 Security Services Expense 12,427.15 Utilities Expense 3,560.56 ------------ Total Operational Costs 101,865.26 ------------ GENERAL & ADMINISTRATIVE COSTS Bank Charges/Processing Fees-A 10,010.70 Allocated Corporate Overhead 46,386.00 Other Expenses 2,676.29 ------------ Total General and Administrative Expenses 59,072.99 ------------ Gain (Loss) on Disposal of Assets -- Interest Expense -- Other Income (Expense) 14,359.15 ------------ Net Interest and Other Income (Expense) 14,359.15 ------------ Depreciation Expense -- ------------ Total Depreciation and Amortization -- ------------ REORGANIZATION EXPENSES Bankruptcy Fees -- Professional Fees Allocated 51,847.00 ------------ Total Reorganization Expenses 51,847.00 ------------ Net Income $(197,157.29) ============ 3 SUNRISE EDUCATIONAL SERVICES, INC. BALANCE SHEET AUGUST 31, 2001 ASSETS Current Assets Cash and Cash Equivalents $ -- Accounts Receivable, net -- Prepaid Rent -- Other Current Assets 1,785.00 ------------- Total Current Assets 1,785.00 Due From Tesseract 3,076,509.41 Property and Equipment, net 3,512.66 Deposits and Other Assets 39,213.68 ------------- Total Assets $3,121,020.75 ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities -- Accounts Payable $ 17,688.14 Checks in Process of Collection 19,404.35 Payroll and Related Accruals 135,324.00 Deferred Revenue and Tuition Deposits -- ------------- Total Current Liabilities 172,416.49 ------------- Pre-Petition Liabilities Accounts Payable 483,166.44 Other Current Liabilities 140,318.37 Long-Term Debt 5,546.62 ------------- Total Pre-Petition Liabilities 629,031.43 ------------- Reserve for Closed Schools 143,661.34 Other Long-Term Obligations 274,439.09 ------------- Total Long-Term Liabilities 418,100.43 ------------- Total Liabilities 1,219,548.35 ------------- Shareholders' Equity Pre-Petition Shareholders' Equity 944,507.80 Post Petition Retained Deficit 956,964.60 ------------- Total Shareholders' Equity 1,901,472.40 ------------- Total Liabilities and Shareholders' Equity $3,121,020.75 ============= 4 CASE NUMBER: B-00-10939-ECF-RTB STATUS OF ASSETS 0-30 31-60 60+ ACCOUNTS RECEIVABLE TOTAL DAYS DAYS DAYS - ------------------- ----- ---- ---- ---- TOTAL ACCOUNTS RECEIVABLE -- -- -- -- LESS: AMOUNT CONSIDERED UNCOLLECTIBLE ACCOUNTS RECEIVABLE (NET) -- -- -- -- SCHEDULED CURRENT FIXED ASSETS AMOUNT ADDITIONS DELETIONS AMOUNT - ------------ ------ --------- --------- ------ REAL PROPERTY BUILDING IMPROVEMENTS/PLANT 1,020,140 56,214 1,076,355 0 ACCUMULATED DEPRECIATION (413,993) (115,058) (529,051) (0) NET BUILDINGS/PLANT 606,147 (58,844) 547,304 (0) EQUIPMENT 755,300 24,266 776,055 3,512 ACCUMULATED DEPRECIATION (511,115) (130,029) (641,144) (0) NET EQUIPMENT 244,186 (105,763) 134,911 3,512 AUTOS & VEHICLES 953,839 953,839 0 ACCUMULATED DEPRECIATION (625,670) (79,967) (705,637) (0) NET AUTOS & VEHICLES 328,170 (79,967) 248,202 0 5 CASE NUMBER: B-00-10939-ECF-RTB STATUS OF LIABILITIES AND SENSITIVE PAYMENTS POSTPETITION UNPAID OBLIGATIONS TOTAL 0-30 31-60 61-90 91+ ------------------ ----- ---- ----- ----- --- ACCOUNTS PAYABLE 17,688 3,858 9,260 -- 4,571 TAXES PAYABLE -- -- ACCRUED PAYROLL AND BENEFITS 173,189 173,189 PREPAID TUITION 83,248 83,248 SECURED DEBT -- OUTSTANDING A/P CHECKS 19,404 19,404 OTHER (ATTACH LIST) -- TOTAL POST-PETITION LIABILITIES 293,530 279,700 9,260 -- 4,571 PAYMENTS TO INSIDERS AND PROFESSIONALS INSIDERS AMOUNT PD TOTAL PD NAME REASON FOR PAYMENT THIS MONTH TO DATE - ---- ------------------ ---------- ------- NONE TOTAL PAYMENTS TO INSIDERS -- -- PROFESSIONALS DATE OF COURT TOTAL ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED NAME PAYMENT APPROVED PAID TO DATE & UNPAID - ---- ------- -------- ---- ------- -------- NONE 6 CASE NUMBER: B-00-10939-ECF-RTB CASE STATUS QUESTIONNAIRE YES NO --- -- HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT? NO ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES? NO ARE ANY WAGE PAYMENTS PAST DUE? NO ARE ANY U.S. TRUSTEE QUARTERLY FEES DELINQUENT? NO CURRENT NUMBER OF EMPLOYEES: 0 INSURANCE CARRIER AND PERIOD EXPIRATION PAYMENT AMOUNT TYPE OF POLICY POLICY NUMBER COVERED DATE & FREQUENCY - -------------- ------------- ------- ---- ----------- WHAT STEPS HAVE BEEN TAKEN TO REMEDY ANY OF THE PROBLEMS THAT BROUGHT ABOUT THE CHAPTER 11 FILING? LIST ANY MATTERS THAT ARE DELAYING THE FILING OF A PLAN OF REORGANIZATION? 7 SUNRISE EDUCATIONAL SERVICES, INC. CASH FLOW ANALYSIS B-00-10939-ECF-RTB SUNRISE EDUCATIONAL SERVICES, INC. CASH FLOW ANALYSIS B-00-10939-ECF-RTB BEGINNING FUNDS AVAILABLE: $3,200,650.05 ------------- Cash In: Telecheck $ 327.00 Credit Card Deposit (Preschools) 12,201.30 Regular Deposits (Preschools) 287,342.15 Other Deposit (Preschool) -- ------------- Daily Cash In: $ 299,870.45 ============= Cash Out: Preschool A/P $ 326,632.67 Preschool Payroll 336,232.75 Corporate A/P (allocated) 115,131.82 Preschool NSF 3,142.68 ------------- Daily Cash Out: $ 781,139.92 ============= Net Cash In/Out: $ (481,269.47) ------------- ENDING FUNDS AVAILABLE: $2,719,380.58 ============= 8 SUNRISE PRESCHOOLS, INC. VENDOR CHECK REGISTER REPORT PAYABLES MANAGEMENT
CHECK NUMBER VENDOR ID VENDOR CHECK NAME CHECK DATE CHECKBOOK ID AUDIT TRAIL CODE AMOUNT - ------------ --------- ----------------- ---------- ------------ ---------------- ------ 100013694 4DPROP000 4D PROPERTIES 8/1/2001 OPERATING PMCHK00000183 $11,483.79 100013695 ANCVIL000 ANCALA VILLAGE SHOPPING CENTER 8/1/2001 OPERATING PMCHK00000183 $19,239.93 100013696 BLD7ZEL000 BLDG7UNION HILLS LLC 8/1/2001 OPERATING PMCHK00000183 $7,626.51 100013697 DERENT000 DER ENTERPRISES LLP 8/1/2001 OPERATING PMCHK00000183 $20,127.95 100013698 DIVINS000 DIVALL INSURED INCOME PROP INC 8/1/2001 OPERATING PMCHK00000183 $1,492.66 100013699 MARTRE000 MARICOPA COUNTY TREASURER 8/1/2001 OPERATING PMCHK00000183 $17,504.82 100013700 MCCVEN003 MCCLINTOCK VENTURE LC 8/1/2001 OPERATING PMCHK00000183 $13,025.25 100013701 MESDEV000 MESA DEVELOPMENT INC 8/1/2001 OPERATING PMCHK00000183 $26,828.37 100013702 PEOINV000 PEORIA INVESTMENTS INC 8/1/2001 OPERATING PMCHK00000183 $27,217.79 100013703 SANVIL003 SANTIAGO VILLA (#129) 8/1/2001 OPERATING PMCHK00000183 $13,865.00 100013704 SANVIL005 SANTIAGO VILLA (#124) 8/1/2001 OPERATING PMCHK00000183 $3,869.60 100013705 SDMFAM000 SDM FAMILY CORP 8/1/2001 OPERATING PMCHK00000183 $13,794.27 100013706 WELFAR002 WELLS FARGO BANK 8/1/2001 OPERATING PMCHK00000183 $27,443.74 100013708 SUNPRE000 SUNRISE PRESCHOOL VI INVESTME 8/1/2001 OPERATING PMCHK00000184 $12,545.78 100013709 WILPRE000 WILLIS PRESCHOOL VI 8/1/2001 OPERATING PMCHK00000184 $18,533.62 100013710 NOPMIK000 MIKE NOPPENBERG 8/3/2001 OPERATING PMCHK00000185 $1,564.51 100013711 SLAJAC000 JACK SLATE 8/3/2001 OPERATING PMCHK00000185 $1,534.60 100013712 AMKINC000 AMKORE INC. 8/6/2001 OPERATING PMCHK00000186 $169.04 100013713 APS200000 APS-2907 8/6/2001 OPERATING PMCHK00000186 $4,807.09 100013714 ARIAIR000 ARIZONA AIR-SCENT 8/6/2001 OPERATING PMCHK00000186 $772.91 100013715 AT&TPHO00 AT&T PHOENIX-78225 8/6/2001 OPERATING PMCHK00000186 $188.03 100013716 CHAPOL000 CHANDLER POLICE DEPARTMENT 8/6/2001 OPERATING PMCHK00000186 $50.00 100013717 CITMESUTI CITY OF MESA - UTILITIES - 187 8/6/2001 OPERATING PMCHK00000186 $276.61 100013718 CITPHOWAT CITY OF PHOENIX (WATER SVCS)29 8/6/2001 OPERATING PMCHK00000186 $726.29 100013719 CLS000000 CLS/CLEANWAY 8/6/2001 OPERATING PMCHK00000186 $300.00 100013720 COLLOC000 COLLINS LOCKSMITH 8/6/2001 OPERATING PMCHK00000186 $55.00 100013721 COMREF000 COMMERCIAL REFRIGERATION 8/6/2001 OPERATING PMCHK00000186 $122.00 100013723 CREFUN000 CREATIVE FUNDING 8/6/2001 OPERATING PMCHK00000186 $399.60 100013724 DYCNAN000 DYCK, NANCY 8/6/2001 OPERATING PMCHK00000186 $44.72 100013725 ELDCHR000 CHRISTINE ELDRIDGE 8/6/2001 OPERATING PMCHK00000186 $228.00 100013726 FELTAM000 TAMMY FELIZ 8/6/2001 OPERATING PMCHK00000186 $17.71 100013727 GECAP0003 GE CAPITAL 8/6/2001 OPERATING PMCHK00000186 $306.91 100013728 GILBER000 BERNITA GILLIAM 8/6/2001 OPERATING PMCHK00000186 $168.46 100013729 HODCAR000 CARRIE HODGE 8/6/2001 OPERATING PMCHK00000186 $133.10 100013730 IKOOFF003 IKON OFFICE SOLUTIONS (CA) 8/6/2001 OPERATING PMCHK00000186 $51.73 100013731 KINMGM000 KINNEY MANAGEMENT SERVICES 8/6/2001 OPERATING PMCHK00000186 $40.00 100013732 KNO000000 KNOTT,MARILYN 8/6/2001 OPERATING PMCHK00000186 $209.87 100013733 KTVCHA000 KTVK-TV CHANNEL 3 8/6/2001 OPERATING PMCHK00000186 $147.52 100013734 LITPAR LITCHFIELD PARKS & Recreation 8/6/2001 OPERATING PMCHK00000186 $642.52 100013735 MARINF000-B MARKET INFORMATION CENTER 8/6/2001 OPERATING PMCHK00000186 $499.63 100013736 MARJOE000 JOELY MARTIN 8/6/2001 OPERATING PMCHK00000186 $198.40 100013737 NOP000000 NOPPENBERG,KAREN 8/6/2001 OPERATING PMCHK00000186 $57.48 100013738 PANPRO000 PANTANO PRODUCE COMPANY 8/6/2001 OPERATING PMCHK00000186 $777.99 100013739 PETSTA000 STACEY PETO 8/6/2001 OPERATING PMCHK00000186 $50.00 100013740 RANKAT000 RANDALL, KATHY 8/6/2001 OPERATING PMCHK00000186 $291.86 100013741 ROSSALL000 SALLY ROSILIO 8/6/2001 OPERATING PMCHK00000186 $19.22 100013742 STA000001 STAPLES 8/6/2001 OPERATING PMCHK00000186 $1,720.01 100013743 TOSEAS000 TOSHIBA EASY LEASE 8/6/2001 OPERATING PMCHK00000186 $1,459.21 100013744 TOWOF0002 TOWN OF GILBERT - UTILITIES 8/6/2001 OPERATING PMCHK00000186 $698.02 100013745 US0WES003 US WEST COMMUNICATIONS-29060 8/6/2001 OPERATING PMCHK00000186 $750.03 100013746 WELFAR001 WELLS FARGO 8/6/2001 OPERATING PMCHK00000186 $176.00 100013747 WESINN000 WESTERN INNOVATIONS INC 8/6/2001 OPERATING PMCHK00000186 $5,539.27 100013748 XOCOMM000 X O COMMUNICATIONS 8/6/2001 OPERATING PMCHK00000186 $2,756.06 100013749 COUCHE000 COURTESY CHEVROLET 8/6/2001 OPERATING PMCHK00000187 $875.56 100013750 COUCHE000 COURTESY CHEVROLET 8/6/2001 OPERATING PMCHK00000188 $15,301.06 100013751 CIGNA000 CIGNA 8/6/2001 OPERATING PMCHK00000189 $329.56 100013752 CONGENLIF000 CONNECTICUT GENERAL LIFE-DENT 8/6/2001 OPERATING PMCHK00000189 $1,997.13 100013753 MANLIF000 MANULIFE FINANCIAL 8/6/2001 OPERATING PMCHK00000189 $4,746.36 100013754 US0FOO000 US FOODSERVICE 8/13/2001 OPERATING PMCHK00000190 $5,084.59 100013755 BESACC000 BEST ACCESS SYSTEMS 8/13/2001 OPERATING PMCHK00000191 $162.53 100013756 BURJEA000 JEANIE BURDI 8/13/2001 OPERATING PMCHK00000191 $34.00 100013757 CLYREN000 RENEE CLYDE 8/13/2001 OPERATING PMCHK00000191 $216.74 100013758 DECEDW000 EDWARD DECKER 8/13/2001 OPERATING PMCHK00000191 $50.00 100013759 FELTAM000 TAMMY FELIZ 8/13/2001 OPERATING PMCHK00000191 $76.07 100013760 FRYFOO000 FRY'S FOOD STORES 8/13/2001 OPERATING PMCHK00000191 $328.63 100013761 HOMDEP000 HOME DEPOT 8/13/2001 OPERATING PMCHK00000191 $2,818.40 100013762 JETCON000 JET CONNECTION 8/13/2001 OPERATING PMCHK00000191 $160.00 100013765 NEWTIM000 NEW TIMES 8/13/2001 OPERATING PMCHK00000191 $67.32 100013766 REDSER000 REDDI SERVICES 8/13/2001 OPERATING PMCHK00000191 $69.50 100013767 SRP2950 SRP2950 8/13/2001 OPERATING PMCHK00000191 $5,136.53 100013768 THIMIC000 MICHAEL THOREN 8/13/2001 OPERATING PMCHK00000191 $349.00 100013769 US0WES003 US WEST COMMUNICATIONS-29060 8/13/2001 OPERATING PMCHK00000191 $1,162.66 100013770 CITMESUTI CITY OF MESA - UTILITIES - 187 8/13/2001 OPERATING PMCHK00000191 $479.29 100013771 AT&TWIR06 AT&T WIRELESS SERVICES-PHOENIX 8/17/2001 OPERATING PMCHK00000192 $2,435.79 100013772 CITPEOUTI CITY OF PEORIA - UTILITIES 8/17/2001 OPERATING PMCHK00000192 $317.38 100013773 HORDIS000 HORIZON DISTRIBUTION 8/17/2001 OPERATING PMCHK00000192 $67.91 100013774 JAKBRE000 JAKE BREAK CAFE 8/17/2001 OPERATING PMCHK00000192 $1,676.63 100013775 PACALA000 PACIFIC ALARMS COMPANY 8/17/2001 OPERATING PMCHK00000192 $540.00 100013776 PITBOW000 PITNEY BOWES CREDIT CORP856460 8/17/2001 OPERATING PMCHK00000192 $450.18 100013777 CITGLEUTI CITY OF GLENDALE - UTILITIES 8/21/2001 OPERATING PMCHK00000193 $427.29 100013778 CITTEM000 CITY OF TEMPE 8/21/2001 OPERATING PMCHK00000193 $534.61 100013779 SANBAR001 SANTA BARBARA BANK & TRUST 8/22/2001 OPERATING PMCHK00000194 $11,826.56 100013780 SCHWAL000 SCHIAN WALKER, P.L.C. 8/24/2001 OPERATING PMCHK00000195 $1,123.10 100013781 4DPROP000 4D PROPERTIES 8/24/2001 OPERATING PMCHK00000195 $285.87 100013782 CITPHO788 CITY OF PHOENIX-78815 8/28/2001 OPERATING PMCHK00000196 $74.00 100013783 TERINT000 TERMINEX INTERNATIONAL 8/28/2001 OPERATING PMCHK00000196 $409.00 100013784 HUDKRI000 KRISTIN HUDSON 8/28/2001 OPERATING PMCHK00000196 $30.00 100013785 BANONE003 BANK ONE ARIZONA NA 8/28/2001 OPERATING PMCHK00000196 $3,310.72 100013786 ARIAIR000 ARIZONA AIR-SCENT 8/28/2001 OPERATING PMCHK00000196 $272.23 100013787 LIVDIS000 LIVELY DISTRIBUTING DAIRY 8/28/2001 OPERATING PMCHK00000196 $857.99 REMIT000000000000004 CITMESUTI CITY OF MESA - UTILITIES - 187 8/3/2001 PMCHK00000185 $0.00 ----------- Total Checks: 91 Total Amount of Checks: $326,632.67 ===========
9 EX-99.4 5 ex99-4.txt SUNRISE SEPTEMBER 2001 MONTHLY REPORT Exhibit 99.4 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF ARIZONA In re: ) CASE NO. B-00-10939-ECF-RTB ) SUNRISE EDUCATIONAL SERVICES ) BUSINESS AND INDUSTRY ) MONTHLY OPERATING REPORT ) ) MONTH OF SEPTEMBER ) Debtor(s) ) DATE PETITION FILED: October 6, 2000 ) ) TAX PAYER ID NO. 4101581297 Nature of Debtor's Business: For Profit Educational Services DATE DISCLOSURE STATEMENT: FILED Not Yet Filed TO BE FILED To Be Determined ------------- ---------------- DATE PLAN OF REORGANIZATION: FILED Not Yet Filed TO BE FILED To Be Determined ------------- ---------------- I CERTIFY UNDER PENALTY OF PERJURY THAT THE FOLLOWING MONTHLY OPERATING REPORT AND THE ACCOMPANYING ATTACHMENTS ARE TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE. RESPONSIBLE PARTY: CEO - --------------------------------------- ---------- ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE Michael Lynch - --------------------------------------- ---------- PRINTED NAME OF RESPONSIBLE PARTY DATE PREPARER: Controller - --------------------------------------- ---------- ORIGINAL SIGNATURE OF PREPARER TITLE Douglass E. Snell - --------------------------------------- ---------- PRINTED NAME OF PREPARER DATE PERSON TO CONTACT REGARDING THIS REPORT: Douglass E. Snell --------------------------------------- PHONE NUMBER: 602-300-6257 --------------------------------------- ADDRESS: 1777 W. Camelback Rd, J109 Phoenix, AZ 85015 --------------------------------------- ORIGINAL OF REPORT IS FILED WITH THE COURT, COPY IS FILED WITH U.S. TRUSTEE'S OFFICE SUNRISE EDUCATIONAL SERVICES, INC. B-00-10939-ECF-RTB MONTH: SEPTEMBER 2001 RECEIPTS AND DISBURSEMENTS BANK ACCOUNTS ----------------------------------------- Amounts reported should be SUNRISE SUNRISE PMTS per the debtor's books, OPERATING MADE BY not per the bank statement #052-978-7889 TESSERACT TOTAL ------------- ------------ ----------- ACCOUNT BALANCE - BEGINNING OF MONTH -- -- RECEIPTS STUDENT FEES -- CHARTER SCHOOL REVENUE -- ACCOUNTS RECEIVABLE -- LOANS AND ADVANCES -- SALE OF ASSETS -- TRANSFERS IN FROM OTHER ACCOUNTS 117,485.08 53,074.33 170,559.41 OTHER (ATTACH LIST) -- TOTAL RECEIPTS 117,485.08 53,074.33 170,559.41 DISBURSEMENTS BUSINESS - ORDINARY OPERATIONS 117,485.08 117,485.08 CAPITAL IMPROVEMENTS -- PRE-PETITION DEBT -- TRANSFERS TO OTHER DIP ACCOUNTS -- PAYMENTS MADE FOR SUNRISE EDU 53,074.33 53,074.33 OTHER (ATTACH LIST) -- REORGANIZATION EXPENSES: ATTORNEY FEES -- ACCOUNTANT FEES -- OTHER PROFESSIONAL FEES -- U.S. TRUSTEE QUARTERLY FEE -- COURT COSTS -- TOTAL DISBURSEMENTS 117,485.08 53,074.33 170,559.41 ----------- ----------- ----------- ACCOUNT BALANCE - END OF MONTH -- -- -- =========== =========== =========== THE FOLLOWING SECTION MUST BE FILLED OUT DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: TOTAL DISBURSEMENTS FROM ABOVE 170,559.41 LESS: TRANSFERS OUT TO OTHER DIP ACCOUNTS -- PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES ---------- TOTAL DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: 170,559.41 ========== 2 SUNRISE EDUCATIONAL SERVICES, INC. STATEMENT OF OPERATIONS FOR THE MONTH ENDING SEPTEMBER 30, 2001 REVENUE Tuition and Fees Revenue $ -- Government Revenue -- Refunds/Returns -- ------------ Total Revenue -- ------------ OPERATIONAL COSTS Taxes and Benefits 1,322.37 Food Programs Expense 283.12 Transportation Expenses -- Maintenance Expense 5,375.54 Insurance Expense -- Security Services Expense -- Utilities Expense -- ------------ Total Operational Costs 6,981.03 ------------ GENERAL & ADMINISTRATIVE COSTS Bank Charges/Processing Fees-A -- Allocated Corporate Overhead 27,501.00 Other Expenses 2,817.27 ------------ Total General and Administrative Expenses 30,318.27 ------------ Gain (Loss) on Disposal of Assets -- Interest Expense -- Other Income (Expense) -- ------------ Net Interest and Other Income (Expense) -- ------------ Depreciation Expense -- ------------ Total Depreciation and Amortization -- ------------ REORGANIZATION EXPENSES Bankruptcy Fees -- Professional Fees Allocated 42,345.00 ------------ Total Reorganization Expenses 42,345.00 ------------ Net Income $ (79,644.30) ============ 3 SUNRISE EDUCATIONAL SERVICES, INC. BALANCE SHEET SEPTEMBER 30, 2001 ASSETS Current Assets Cash and Cash Equivalents $ -- Accounts Receivable, net -- Prepaid Rent -- Other Current Assets 1,785.00 ------------- Total Current Assets 1,785.00 Due From Tesseract 3,006,663.41 Property and Equipment, net 3,512.66 Deposits and Other Assets 116,372.11 ------------- Total Assets $3,128,333.18 ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities -- Accounts Payable $ (1,694.39) Checks in Process of Collection 136,889.43 Payroll and Related Accruals 135,324.00 Deferred Revenue and Tuition Deposits -- ------------- Total Current Liabilities 270,519.04 ------------- Pre-Petition Liabilities Accounts Payable 483,166.44 Other Current Liabilities 140,318.37 Long-Term Debt 5,546.62 ------------- Total Pre-Petition Liabilities 629,031.43 ------------- Reserve for Closed Schools 143,661.34 Other Long-Term Obligations 274,439.09 ------------- Total Long-Term Liabilities 418,100.43 ------------- Total Liabilities 1,317,650.90 ------------- Shareholders' Equity Pre-Petition Shareholders' Equity 933,361.98 Post Petition Retained Deficit 877,320.30 ------------- Total Shareholders' Equity 1,810,682.28 ------------- Total Liabilities and Shareholders' Equity $3,128,333.18 ============= 4 CASE NUMBER: B-00-10939-ECF-RTB STATUS OF ASSETS 0-30 31-60 60+ ACCOUNTS RECEIVABLE TOTAL DAYS DAYS DAYS - ------------------- ----- ---- ---- ---- TOTAL ACCOUNTS RECEIVABLE -- -- -- -- LESS: AMOUNT CONSIDERED UNCOLLECTIBLE ACCOUNTS RECEIVABLE (NET) -- -- -- -- SCHEDULED CURRENT FIXED ASSETS AMOUNT ADDITIONS DELETIONS AMOUNT - ------------ ------ --------- --------- ------ REAL PROPERTY BUILDING IMPROVEMENTS/PLANT 1,020,140 56,214 1,076,355 0 ACCUMULATED DEPRECIATION (413,993) (115,058) (529,051) (0) NET BUILDINGS/PLANT 606,147 (58,844) 547,304 (0) EQUIPMENT 755,300 24,266 776,055 3,512 ACCUMULATED DEPRECIATION (511,115) (130,029) (641,144) (0) NET EQUIPMENT 244,186 (105,763) 134,911 3,512 AUTOS & VEHICLES 953,839 953,839 0 ACCUMULATED DEPRECIATION (625,670) (79,967) (705,637) (0) NET AUTOS & VEHICLES 328,170 (79,967) 248,202 0 5 CASE NUMBER: B-00-10939-ECF-RTB STATUS OF LIABILITIES AND SENSITIVE PAYMENTS POSTPETITION UNPAID OBLIGATIONS TOTAL 0-30 31-60 61-90 91+ ------------------ ----- ---- ----- ----- --- ACCOUNTS PAYABLE (1,694) (13,577) -- 7,312 4,571 TAXES PAYABLE -- -- ACCRUED PAYROLL AND BENEFITS 135,324 135,324 PREPAID TUITION -- -- SECURED DEBT -- OUTSTANDING A/P CHECKS 136,889 136,889 OTHER (ATTACH LIST) -- TOTAL POST-PETITION LIABILITIES 270,519 258,636 -- 7,312 4,571 PAYMENTS TO INSIDERS AND PROFESSIONALS INSIDERS AMOUNT PD TOTAL PD NAME REASON FOR PAYMENT THIS MONTH TO DATE - ---- ------------------ ---------- ------- NONE TOTAL PAYMENTS TO INSIDERS -- -- PROFESSIONALS DATE OF COURT TOTAL ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED NAME PAYMENT APPROVED PAID TO DATE & UNPAID - ---- ------- -------- ---- ------- -------- NONE 6 CASE NUMBER: B-00-10939-ECF-RTB CASE STATUS QUESTIONNAIRE YES NO --- -- HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT? NO ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES? NO ARE ANY WAGE PAYMENTS PAST DUE? NO ARE ANY U.S. TRUSTEE QUARTERLY FEES DELINQUENT? NO CURRENT NUMBER OF EMPLOYEES: 0 INSURANCE CARRIER AND PERIOD EXPIRATION PAYMENT AMOUNT TYPE OF POLICY POLICY NUMBER COVERED DATE & FREQUENCY - -------------- ------------- ------- ---- ----------- WHAT STEPS HAVE BEEN TAKEN TO REMEDY ANY OF THE PROBLEMS THAT BROUGHT ABOUT THE CHAPTER 11 FILING? LIST ANY MATTERS THAT ARE DELAYING THE FILING OF A PLAN OF REORGANIZATION? 7 SUNRISE EDUCATIONAL SERVICES, INC. CASH FLOW ANALYSIS B-00-10939-ECF-RTB BEGINNING FUNDS AVAILABLE: $2,719,380.58 ------------- Cash In: Telecheck $ -- Credit Card Deposit (Preschools) -- Regular Deposits (Preschools) 16,664.30 Other Deposit (Preschool) -- ------------- Daily Cash In: $ 16,664.30 ============= Cash Out: Preschool A/P $ 117,485.08 Preschool Payroll -- Corporate A/P (allocated) 53,074.34 Preschool NSF 352.10 ------------- Daily Cash Out: $ 170,911.52 ============= Net Cash In/Out: $ (154,247.22) ------------- ENDING FUNDS AVAILABLE: $2,565,133.36 ============= 8 SUNRISE PRESCHOOLS, INC. VENDOR CHECK REGISTER REPORT PAYABLES MANAGEMENT
CHECK NUMBER VENDOR ID VENDOR CHECK NAME CHECK DATE CHECKBOOK ID AUDIT TRAIL CODE AMOUNT - ------------ --------- ----------------- ---------- ------------ ---------------- ------ 100013694 4DPROP000 4D PROPERTIES 8/1/2001 OPERATING PMCHK00000183 $11,483.79 [DELETE ABOVE LINE] 100013788 CROBAN000 CROWN BANK LEASING 9/4/2001 OPERATING PMCHK00000197 $550.66 100013789 CROBAN000 CROWN BANK LEASING 9/4/2001 OPERATING PMCHK00000197 $1,474.74 100013790 CROBAN000 CROWN BANK LEASING 9/4/2001 OPERATING PMCHK00000197 $1,280.49 100013791 GECAP0003 GE CAPITAL 9/4/2001 OPERATING PMCHK00000197 $731.26 100013792 GECAP0003 GE CAPITAL 9/4/2001 OPERATING PMCHK00000197 $910.12 100013793 GECAP0003 GE CAPITAL 9/4/2001 OPERATING PMCHK00000197 $6,574.71 100013794 GECAP0003 GE CAPITAL 9/4/2001 OPERATING PMCHK00000197 $919.71 100013795 GECAP0003 GE CAPITAL 9/4/2001 OPERATING PMCHK00000197 $989.70 100013796 GECAP0003 GE CAPITAL 9/4/2001 OPERATING PMCHK00000197 $849.55 100013797 GECAP0003 GE CAPITAL 9/4/2001 OPERATING PMCHK00000197 $806.63 100013798 GECAP0003 GE CAPITAL 9/4/2001 OPERATING PMCHK00000197 $1,103.66 100013799 GECAP0003 GE CAPITAL 9/4/2001 OPERATING PMCHK00000197 $1,701.85 100013800 GECAP0003 GE CAPITAL 9/4/2001 OPERATING PMCHK00000197 $969.13 100013801 GECAP0003 GE CAPITAL 9/4/2001 OPERATING PMCHK00000197 $1,012.05 100013802 BORG000-B BORG HOLDINGS 9/4/2001 OPERATING PMCHK00000198 $77,158.43 100013803 IROMOU000 IRON MOUNTAIN 9/5/2001 OPERATING PMCHK00000199 $866.30 100013804 JON000001 JONES,EARL 9/5/2001 OPERATING PMCHK00000199 $13,828.09 100013805 STA000001 STAPLES 9/5/2001 OPERATING PMCHK00000199 $371.75 100013806 TOWOF0002 TOWN OF GILBERT - UTILITIES 9/5/2001 OPERATING PMCHK00000199 $343.88 100013807 IROMOU000 IRON MOUNTAIN 9/10/2001 OPERATING PMCHK00000200 $778.44 100013808 IROMOU000 IRON MOUNTAIN 9/10/2001 OPERATING PMCHK00000200 $87.86 100013809 MARTRE000 MARICOPA COUNTY TREASURER 9/10/2001 OPERATING PMCHK00000200 $531.87 100013810 MARTRE000 MARICOPA COUNTY TREASURER 9/10/2001 OPERATING PMCHK00000200 $773.10 100013811 SUNPOR000 SUN PORTS INTL 9/10/2001 OPERATING PMCHK00000200 $365.93 100013812 NOPMIK000 MIKE NOPPENBERG 9/18/2001 OPERATING PMTRX00000232 $135.00 100013813 CREFUN000 CREATIVE FUNDING 9/19/2001 OPERATING PMCHK00000201 $1,957.63 100013815 LIVDIS000 LIVELY DISTRIBUTING DAIRY 9/26/2001 OPERATING PMCHK00000202 $283.12 100013816 MARTRE000 MARICOPA COUNTY TREASURER 9/26/2001 OPERATING PMCHK00000202 $17.40 100013817 WASMAN001 WASTE MANAGEMENT OF ARIZONA 9/26/2001 OPERATING PMCHK00000202 $112.02 ----------- Total Checks: 29 Total Amount of Checks: $117,485.08 ===========
9 EX-99.3 6 ex99-3.txt TESSERACT SEPTEMBER 2001 MONTHLY REPORT Exhibit 99.3 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF ARIZONA In re: ) CASE NO. B-00-10938-ECF-RTB ) THE TESSERACT GROUP, INC. ) BUSINESS AND INDUSTRY ) MONTHLY OPERATING REPORT ) ) MONTH OF SEPTEMBER ) Debtor(s) ) DATE PETITION FILED: October 6, 2000 ) ) TAX PAYER ID NO. 4101581297 Nature of Debtor's Business: For Profit Educational Services DATE DISCLOSURE STATEMENT: FILED Not Yet Filed TO BE FILED To Be Determined ------------- ---------------- DATE PLAN OF REORGANIZATION: FILED Not Yet Filed TO BE FILED To Be Determined ------------- ---------------- I CERTIFY UNDER PENALTY OF PERJURY THAT THE FOLLOWING MONTHLY OPERATING REPORT AND THE ACCOMPANYING ATTACHMENTS ARE TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE. RESPONSIBLE PARTY: CEO - ---------------------------------------- ---------- ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE Michael Lynch - ---------------------------------------- ---------- PRINTED NAME OF RESPONSIBLE PARTY DATE PREPARER: Controller - ---------------------------------------- ---------- ORIGINAL SIGNATURE OF PREPARER TITLE Douglass E. Snell - ---------------------------------------- ---------- PRINTED NAME OF PREPARER DATE PERSON TO CONTACT REGARDING THIS REPORT: Douglass E. Snell --------------------------------------- PHONE NUMBER: 602-300-6257 --------------------------------------- ADDRESS: 1777 W. Camelback Rd., J109 Phoenix, AZ 85015 --------------------------------------- ORIGINAL OF REPORT IS FILED WITH THE COURT, COPY IS FILED WITH U.S. TRUSTEE'S OFFICE THE TESSERACT GROUP, INC. B-00-10938-ECF-RTB MONTH: SEPTEMBER 2001 RECEIPTS AND DISBURSEMENTS
BANK ACCOUNTS ----------------------------------------------------------------------------------------------- Amounts reported should be NATIONAL GROUP GROUP GROUP TESSERACT GROUP TESSERACT per the debtor's books, DEPOSITORY DEPOSITORY MEDICAL PAYROLL OPERATING CHARTER not per the bank statement #944-010-7759 #022-922-6741 #022-922-6576 #022-922-6576 #022-978-8101 #022-922-6808 ------------- ------------- ------------- ------------- ------------- ------------- ACCOUNT BALANCE - BEGINNING OF MONTH -- 1,540,522.02 -- -- -- 108.01 RECEIPTS STUDENT FEES 34,405.77 CHARTER SCHOOL REVENUE -- ACCOUNTS RECEIVABLE -- INTEREST 2,234.25 437.47 SALE OF ASSETS TRANSFERS IN FROM OTHER ACCOUNTS 32,956.00 -- 31,937.43 106,148.67 -- OTHER (ATTACH LIST) TOTAL RECEIPTS 34,405.77 35,190.25 -- 31,937.43 106,148.67 437.47 DISBURSEMENTS BUSINESS - ORDINARY OPERATIONS 1,449.77 -- 31,937.43 53,074.34 65.07 CAPITAL IMPROVEMENTS PRE-PETITION DEBT TRANSFERS TO OTHER DIP ACCOUNTS 32,956.00 138,086.10 PAYMENTS MADE FOR SUNRISE EDU. 117,485.08 53,074.33 OTHER (VOIDS) REORGANIZATION EXPENSES: ATTORNEY FEES ACCOUNTANT FEES OTHER PROFESSIONAL FEES U.S. TRUSTEE QUARTERLY FEE COURT COSTS TOTAL DISBURSEMENTS 34,405.77 255,571.18 -- 31,937.43 106,148.67 65.07 ------------ ------------- ----------- ------------ ------------ ------------- ACCOUNT BALANCE - END OF MONTH -- 1,320,141.09 -- -- -- 488.41 ============ ============= =========== ============ ============ ============= BANK ACCOUNTS ------------------------------------------------------------------------------------- Amounts reported should be CHARTER FIRST FEDERAL CREDITOR per the debtor's books, EXTRACURRICULAR CREDIT UNION RESERVE NE CAPITAL not per the bank statement #022-922-7442 #4002-0270-922 #052-980-2118 RESERVE TOTAL ------------- -------------- ------------- ---------------- ---------------- ACCOUNT BALANCE - BEGINNING OF MONTH -- -- 418,224.45 585,000.00 2,543,854.48 RECEIPTS STUDENT FEES 34,405.77 CHARTER SCHOOL REVENUE -- ACCOUNTS RECEIVABLE -- INTEREST 457.99 3,129.71 SALE OF ASSETS -- -- TRANSFERS IN FROM OTHER ACCOUNTS 171,042.10 OTHER (ATTACH LIST) -- TOTAL RECEIPTS -- -- 457.99 -- 208,577.58 DISBURSEMENTS BUSINESS - ORDINARY OPERATIONS 86,526.61 CAPITAL IMPROVEMENTS -- PRE-PETITION DEBT -- TRANSFERS TO OTHER DIP ACCOUNTS -- 171,042.10 PAYMENTS MADE FOR SUNRISE EDU 170,559.41 OTHER (VOIDS) -- REORGANIZATION EXPENSES: ATTORNEY FEES -- ACCOUNTANT FEES -- OTHER PROFESSIONAL FEES -- U.S. TRUSTEE QUARTERLY FEE -- COURT COSTS -- TOTAL DISBURSEMENTS -- -- -- -- 428,128.12 ------------ ------------- ------------- ------------- ------------- ACCOUNT BALANCE - END OF MONTH -- -- 418,682.44 585,000.00 2,324,303.94 ============ ============= ============= ============= ============= THE FOLLOWING SECTION MUST BE FILLED OUT DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: TOTAL DISBURSEMENTS FROM ABOVE 428,128.12 LESS: TRANSFERS OUT TO OTHER DIP ACCOUNTS (171,042.10) LESS: PAYMENTS MADE FOR SUNRISE EDUCATIONAL SERVICES, INC. (170,559.41) PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. PAYMENTS FROM ESCROW OR 2-PARTY CHECKS) ------------- TOTAL DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: 86,526.61 =============
2 THE TESSERACT GROUP (EXCL. SUNRISE) STATEMENT OF OPERATIONS FOR THE MONTH ENDING SEPTEMBER 30, 2001 REVENUE Tuition and Fees Revenue $ -- Refunds/Returns -- Discounts -- ----------- Total Revenue -- ----------- OPERATIONAL COSTS Salaries and Wages -- Taxes and Benefits -- Food Programs Expense -- Maintenance Expense -- Insurance Expense -- Rent Expense -- Utilities Expense -- ----------- Total Operational Costs -- ----------- GENERAL & ADMINISTRATIVE COSTS Bank Charges/Processing Fees-A -- Corporate Overhead 55,001.19 Corporate Overhead Allocated to Sunrise (27,501.00) Other Expenses -- ----------- Total General and Administrative Expenses 27,500.19 ----------- Other Income -- Interest Expense -- ----------- Net Interest and Other Income (Expense) -- ----------- REORGANIZATION EXPENSES Professional Fees 84,689.53 Professional Fees Allocated to Sunrise (42,345.00) ----------- Total Reorganization Expenses 42,344.53 ----------- Net Income $(69,844.72) =========== 3 THE TESSERACT GROUP (EXCL. SUNRISE) BALANCE SHEET SEPTEMBER 30, 2001 ASSETS Current Assets Cash and Cash Equivalents $ 2,139,832.24 Accounts Receivable, net 1,841.67 Note Receivable from Nobel -- Prepaid Rent 6,400.00 Other Prepaid Expenses -- -------------- Total Current Assets 2,148,073.91 Investment in Sunrise 18,971,824.26 Property and Equipment, net -- Deposits and Other Assets 1,512,992.80 -------------- Total Assets $22,632,890.97 ============== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable $ 47,411.22 Accrued Payroll and Benefits 997,967.94 Accrued Payroll Taxes -- Deferred Revenue and Tuition Deposits 885,140.74 -------------- Total Current Liabilities 1,930,519.90 -------------- Pre-Petition Liabilities Line of Credit 5,848,822.65 Accounts Payable 3,989,797.38 Other Unsecured Notes Payable 865,500.00 Other Current Liabilities 4,539,075.42 Long-Term Debt 1,696,967.85 -------------- Total Pre-Petition Liabilities 16,940,163.30 -------------- Due to Sunrise 3,006,663.41 Reserve for Closed Schools 504,099.10 Other Long-Term Obligations 13,999.76 -------------- Total Long-Term Liabilities 3,524,762.27 -------------- Total Liabilities 22,395,445.47 -------------- Shareholders' Equity Pre-Petition Shareholders' Equity 5,334,668.03 Post Petition Retained Deficit (5,097,222.53) -------------- Total Shareholders' Equity 237,445.50 -------------- Total Liabilities and Shareholders' Equity $22,632,890.97 ============== 4 CASE NUMBER: B-00-10938-ECF-RTB STATUS OF ASSETS 0-30 31-60 60+ ACCOUNTS RECEIVABLE TOTAL DAYS DAYS DAYS - ------------------- ----- ---- ---- ---- TOTAL ACCOUNTS RECEIVABLE 1,842 1,842 -- -- LESS: AMOUNT CONSIDERED UNCOLLECTIBLE -- -- ACCOUNTS RECEIVABLE (NET) 1,842 1,842 -- -- SCHEDULED CURRENT FIXED ASSETS AMOUNT ADDITIONS DELETIONS AMOUNT - ------------ --------- --------- --------- ------ REAL PROPERTY 1,867,408 1,867,408 (0) BUILDING IMPROVEMENTS/PLANT 846,395 16,066 862,461 (0) ACCUMULATED DEPRECIATION (136,823) (33,112) (169,935) 0 NET BUILDINGS/PLANT 709,573 (17,047) 692,526 (0) EQUIPMENT 5,466,149 11,637 5,477,786 (0) ACCUMULATED DEPRECIATION (2,404,930) (533,426) (2,938,357) 0 NET EQUIPMENT 3,061,218 (521,789) 2,539,429 (0) AUTOS & VEHICLES 557,586 557,586 -- ACCUMULATED DEPRECIATION (259,791) (65,272) (325,063) 0 NET AUTOS & VEHICLES 297,795 (65,272) 232,523 0 NOTE: Reduction in assets due to sale of Private and Charter School assets. 5 CASE NUMBER: B-00-10938-ECF-RTB STATUS OF LIABILITIES AND SENSITIVE PAYMENTS POSTPETITION UNPAID OBLIGATIONS TOTAL 0-30 31-60 61-90 91+ ------------------ --------- --------- ----- ----- ------ ACCOUNTS PAYABLE 47,934 33,999 -- -- 13,935 TAXES PAYABLE -- -- ACCRUED SALARIES AND BENEFITS 997,968 997,968 PREPAID TUITION AND DEPOSITS 885,141 885,141 SECURED DEBT OTHER (ATTACH LIST) --------- --------- ----- ----- ------ TOTAL POST-PETITION LIABILITIES 1,931,043 1,917,108 -- -- 13,935 ========= ========= ===== ===== ====== PAYMENTS TO INSIDERS AND PROFESSIONALS INSIDERS AMOUNT PD TOTAL PD NAME REASON FOR PAYMENT THIS MONTH TO DATE - ---- ------------------ ---------- ---------- Lucian Spataro Wages and Exp. Reimbursement -- 129,134.79 Ernie Recsetar Wages -- 22,000.00 Michael Lynch Wages and Exp. Reimbursement 14,813.60 184,247.68 Gary Lilyquist Wages and Exp. Reimbursement -- 80,239.99 --------- ---------- TOTAL PAYMENTS TO INSIDERS 14,813.60 415,622.46 ========= ========== PROFESSIONALS
DATE OF COURT TOTAL ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED NAME PAYMENT APPROVED PAID TO DATE & UNPAID - ---- ------- -------- ---- ------- -------- Bryan Cave 39,266.39 39,266.39 266,050.86 Engleman & Berger, PC 87,882.08 Field, Sarvas, King & Coleman 6,891.35 6,891.35 6,891.35
6 CASE NUMBER: B-00-10938-ECF-RTB CASE STATUS QUESTIONNAIRE YES NO --- -- HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT? NO ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES? NO ARE ANY WAGE PAYMENTS PAST DUE? NO ARE ANY U.S. TRUSTEE QUARTERLY FEES DELINQUENT? NO CURRENT NUMBER OF EMPLOYEES: 1 INSURANCE CARRIER AND PERIOD EXPIRATION PAYMENT AMOUNT TYPE OF POLICY POLICY NUMBER COVERED DATE & FREQUENCY - -------------- ------------- ------- ---- ----------- WHAT STEPS HAVE BEEN TAKEN TO REMEDY ANY OF THE PROBLEMS THAT BROUGHT ABOUT THE CHAPTER 11 FILING? LIST ANY MATTERS THAT ARE DELAYING THE FILING OF A PLAN OF REORGANIZATION? 7 THE TESSERACT GROUP, INC. CONSOLIDATED CASH FLOW ANALYSIS TOTAL FOR SEPTEMBER 2001 -------------- BEGINNING FUNDS AVAILABLE: $2,543,854.48 ------------- Cash In: Telecheck $ -- Credit Card Deposit (Preschools) -- Credit Card Deposit (Private) -- Credit Card Deposit (Charter) -- Regular Deposits (Preschools) 16,664.30 Regular Deposits (Private) 2,491.08 Regular Deposits (Charter) 720.34 Regular Deposits (Corporate) 14,882.15 Other Deposit (Preschool) -- Interest 3,129.71 Interest on LTC Acct -- Voids -- ------------- Daily Cash In: $ 37,887.58 ============= Cash Out: Preschool A/P $ 117,485.08 Charter A/P 65.07 Private A/P -- Corporate A/P 106,148.67 TesseracT Payroll 31,937.43 Preschool Payroll -- Charter Payroll -- College PR -- Preschool NSF 352.10 Medical Claims -- Banking Fees 1,449.77 LTC Payment -- LTC Fees -- ------------- Daily Cash Out: $ 257,438.12 ============= Net Cash In/Out: $ (219,550.54) ------------- ENDING FUNDS AVAILABLE: $2,324,303.94 ============= 8 THE TESSERACT GROUP, INC. CASH FLOW ANALYSIS B-00-10938-ECF-RTB BEGINNING FUNDS AVAILABLE: $ (175,526.10) Cash In: Credit Card Deposit (Private) -- Credit Card Deposit (Charter) -- Regular Deposits (Private) 2,491.08 Regular Deposits (Charter) 720.34 Regular Deposits (Corporate) 14,882.15 Interest 3,129.71 -------------- Daily Cash In: $ 21,223.28 ============== Cash Out: Charter A/P 65.07 Private A/P -- Corporate A/P 106,148.67 Corporate A/P (allocated to Sunrise) (53,074.34) TesseracT Payroll 31,937.43 Charter Payroll -- Medical Claims -- Banking Fees 1,449.77 LTC Payment -- Voids -- -------------- Daily Cash Out: $ 86,526.60 ============== Net Cash In/Out: $ (65,303.32) -------------- ENDING FUNDS AVAILABLE: $ (240,829.42) ============== 9 CORPORATE COMPANY VENDOR CHECK REGISTER REPORT PAYABLES MANAGEMENT * Voided Checks
AUDIT CHECK NUMBER VENDOR ID VENDOR CHECK NAME CHECK DATE CHECKBOOK ID TRAIL CODE AMOUNT - ------------ --------- ----------------- ---------- ------------ ---------- ------ 200013038 MAN FIN000-B MANULIFE FINANCIAL 9/6/2001 OPERATING2 PMCHK00000319 $1,137.18 200013039 MUTOMA001-B MUTUAL OMAHA-NE 9/6/2001 OPERATING2 PMCHK00000319 $2,597.24 200013040 MUTOMA001-B MUTUAL OMAHA-NE 9/6/2001 OPERATING2 PMCHK00000319 $2,558.75 200013041 MUTOMA001-B MUTUAL OMAHA-NE 9/6/2001 OPERATING2 PMCHK00000319 $2,235.39 200013042 MUTOMA001-B MUTUAL OMAHA-NE 9/6/2001 OPERATING2 PMCHK00000319 $2,278.78 200013043 BEM000000-B BEMISH,KAREN 9/10/2001 OPERATING2 PMCHK00000320 $12.45 200013044 SPEINC000-B SPECTERA, INC. 9/10/2001 OPERATING2 PMCHK00000320 $838.60 200013045 FEDEXP000-B FEDERAL EXPRESS 9/10/2001 OPERATING2 PMCHK00000320 $100.10 200013046 ARC000000-B ARC 9/10/2001 OPERATING2 PMCHK00000321 $103.43 200013047 CAVBRY000-B BRYAN CAVE LLP 9/10/2001 OPERATING2 PMCHK00000322 $39,266.39 200013048 FIERC0000-B FIELD,SARVAS,KING,COLEMAN,PC 9/10/2001 OPERATING2 PMCHK00000322 $6,891.35 200013049 LYN000000-B LYNCH,MICHAEL 9/11/2001 OPERATING2 PMCHK00000323 $202.72 200013050 SNELDO000-B DOUG SNELL 9/12/2001 OPERATING2 PMCHK00000324 $4,326.92 200013051 ARC000000-B ARC 9/13/2001 OPERATING2 PMCHK00000325 $139.84 200013052 ARC000000-B ARC 9/13/2001 OPERATING2 PMCHK00000325 $136.80 200013053 ARC000000-B ARC 9/13/2001 OPERATING2 PMCHK00000325 $100.00 200013054 BONJAM000-B JAMES BONFIGLIO 9/13/2001 OPERATING2 PMCHK00000325 $2,756.25 200013055 FEDEXP000-B FEDERAL EXPRESS 9/13/2001 OPERATING2 PMCHK00000325 $69.80 200013056 SNELDO000-B DOUG SNELL 9/14/2001 OPERATING2 PMCHK00000326 $4,749.36 200013057 RIVJUD000-B JUDI RIVERA 9/14/2001 OPERATING2 PMCHK00000327 $250.00 200013058 ARC000000-B ARC 9/18/2001 OPERATING2 PMCHK00000328 $100.00 200013059 ARC000000-B ARC 9/18/2001 OPERATING2 PMCHK00000328 $100.00 200013060 ARC000000-B ARC 9/18/2001 OPERATING2 PMCHK00000328 $100.00 200013061 ARC000000-B ARC 9/18/2001 OPERATING2 PMCHK00000328 $100.00 200013062 ARC000000-B ARC 9/18/2001 OPERATING2 PMCHK00000328 $100.00 200013063 TELECHK000-B TELECHECK 9/18/2001 OPERATING2 PMCHK00000328 $1.50 200013064 BELSHEOOO-B SHERRY BELL 9/20/2001 OPERATING2 PMCHK00000329 $2,211.21 200013065 FEDEXP000-B FEDERAL EXPRESS 9/20/2001 OPERATING2 PMCHK00000329 $70.88 200013066 LEWLIN000-B LINDA LEWERS 9/20/2001 OPERATING2 PMCHK00000329 $3,172.75 200013067 LYN000000-B LYNCH,MICHAEL 9/20/2001 OPERATING2 PMCHK00000329 $6,826.60 200013068 MOOBRI000-B MOORE, BRIAN 9/20/2001 OPERATING2 PMCHK00000329 $2,041.99 200013069 RIVJUD000-B JUDI RIVERA 9/24/2001 OPERATING2 PMCHK00000330 $350.00 200013070 LYN000000-B LYNCH,MICHAEL 9/25/2001 OPERATING2 PMCHK00000331 $791.39 200013071 MOOBRI000-B MOORE, BRIAN 9/25/2001 OPERATING2 PMCHK00000331 $129.57 200013072 QWECOM000-B QWEST COMMUNICATIONS SERVICES 9/25/2001 OPERATING2 PMCHK00000331 $1,147.54 200013073 RSMMCG000-B RSM MCGLADREY 9/26/2001 OPERATING2 PMCHK00000332 $1,150.00 200013074 BELSHEOOO-B SHERRY BELL 9/26/2001 OPERATING2 PMCHK00000333 $2,211.21 200013075 LEWLIN000-B LINDA LEWERS 9/26/2001 OPERATING2 PMCHK00000333 $3,172.75 200013076 LYN000000-B LYNCH,MICHAEL 9/26/2001 OPERATING2 PMCHK00000333 $6,826.60 200013077 MOOBRI000-B MOORE, BRIAN 9/26/2001 OPERATING2 PMCHK00000333 $2,041.99 200013078 MOOBRI000-B MOORE, BRIAN 9/26/2001 OPERATING2 PMCHK00000334 $472.33 200013079 NOPOOO000-B MIKE NOPPENBERG 9/27/2001 OPERATING2 PMCHK00000335 $500.00 200013080 FIERC0000-B FIELD,SARVAS,KING,COLEMAN,PC 9/27/2001 OPERATING2 PMCHK00000336 $50.00 200013081 LYN000000-B LYNCH,MICHAEL 9/27/2001 OPERATING2 PMCHK00000336 $166.29 200013082 RIVJUD000-B JUDI RIVERA 9/27/2001 OPERATING2 PMCHK00000336 $520.00 200013083 WELFAR003-B WELLS FARGO (MN) 9/27/2001 OPERATING2 PMCHK00000336 $710.67 200013084 AT&TWIR06-B AT&T WIRELESS SERVICES-PHOENIX 9/28/2001 OPERATING2 PMCHK00000337 $332.05 REMIT000000000000112 ARC000000-B ARC 9/10/2001 PMCHK00000320 $0.00 REMIT000000000000113 AIR000000 AIRE-MASTER 9/20/2001 PMCHK00000329 $0.00 REMIT000000000000114 ARIAIR000 ARIZONA AIR-SCENT 9/20/2001 PMCHK00000329 $0.00 ----------- Total Checks: 50 Total Amount of Checks: $106,148.67 ===========
10 EX-99.5 7 ex99-5.txt TESSERACT OCTOBER 2001 MONTHLY REPORT Exhibit 99.5 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF ARIZONA In re: ) CASE NO. B-00-10938-ECF-RTB ) THE TESSERACT GROUP, INC. ) BUSINESS AND INDUSTRY ) MONTHLY OPERATING REPORT ) ) MONTH OF OCTOBER ) Debtor(s) ) DATE PETITION FILED: October 6, 2000 ) ) TAX PAYER ID NO. 4101581297 Nature of Debtor's Business: For Profit Educational Services DATE DISCLOSURE STATEMENT: FILED Not Yet Filed TO BE FILED To Be Determined ------------- ---------------- DATE PLAN OF REORGANIZATION: FILED Not Yet Filed TO BE FILED To Be Determined ------------- ---------------- I CERTIFY UNDER PENALTY OF PERJURY THAT THE FOLLOWING MONTHLY OPERATING REPORT AND THE ACCOMPANYING ATTACHMENTS ARE TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE. RESPONSIBLE PARTY: CEO - ---------------------------------------- ---------- ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE Michael Lynch - ---------------------------------------- ---------- PRINTED NAME OF RESPONSIBLE PARTY DATE PREPARER: Controller - ---------------------------------------- ---------- ORIGINAL SIGNATURE OF PREPARER TITLE Douglass E. Snell - ---------------------------------------- ---------- PRINTED NAME OF PREPARER DATE PERSON TO CONTACT REGARDING THIS REPORT: Douglass E. Snell --------------------------------------- PHONE NUMBER: 602-300-6257 --------------------------------------- ADDRESS: 1777 W. Camelback Rd., J109 Phoenix, AZ 85015 --------------------------------------- ORIGINAL OF REPORT IS FILED WITH THE COURT, COPY IS FILED WITH U.S. TRUSTEE'S OFFICE THE TESSERACT GROUP, INC. B-00-10938-ECF-RTB MONTH: OCTOBER 2001 RECEIPTS AND DISBURSEMENTS
BANK ACCOUNTS ----------------------------------------------------------------------------------------------- Amounts reported should be NATIONAL GROUP GROUP GROUP TESSERACT GROUP TESSERACT per the debtor's books, DEPOSITORY DEPOSITORY MEDICAL PAYROLL OPERATING CHARTER not per the bank statement #944-010-7759 #022-922-6741 #022-922-6576 #022-922-6576 #022-978-8101 #022-922-6808 ------------- ------------- ------------- ------------- ------------- ------------- ACCOUNT BALANCE - BEGINNING OF MONTH -- 1,320,141.09 -- -- -- 480.41 RECEIPTS STUDENT FEES -- CHARTER SCHOOL REVENUE -- ACCOUNTS RECEIVABLE 26,908.76 INTEREST 1,322.24 SALE OF ASSETS TRANSFERS IN FROM OTHER ACCOUNTS 25,615.46 -- -- 65,437.00 -- OTHER (ATTACH LIST) TOTAL RECEIPTS 26,908.76 26,937.70 -- -- 65,437.00 -- DISBURSEMENTS BUSINESS - ORDINARY OPERATIONS 1773.71 -- -- 32,718.50 -- CAPITAL IMPROVEMENTS PRE-PETITION DEBT TRANSFERS TO OTHER DIP ACCOUNTS 25,135.05 65,437.00 480.41 PAYMENTS MADE FOR SUNRISE EDU. -- -- 32,718.50 OTHER (VOIDS) REORGANIZATION EXPENSES: ATTORNEY FEES ACCOUNTANT FEES OTHER PROFESSIONAL FEES U.S. TRUSTEE QUARTERLY FEE COURT COSTS TOTAL DISBURSEMENTS 26,908.76 65,437.00 -- -- 65,437.00 480.41 ------------ ------------- ----------- ------------ ------------ ------------- ACCOUNT BALANCE - END OF MONTH -- 1,281,641.79 -- -- -- -- ============ ============= =========== ============ ============ ============= BANK ACCOUNTS ------------------------------------------------------------------------------------- Amounts reported should be CHARTER FIRST FEDERAL CREDITOR per the debtor's books, EXTRACURRICULAR CREDIT UNION RESERVE NE CAPITAL not per the bank statement #022-922-7442 #4002-0270-922 #052-980-2118 RESERVE TOTAL ------------- -------------- ------------- ---------------- ---------------- ACCOUNT BALANCE - BEGINNING OF MONTH -- -- 418,682.44 585,000.00 2,324,303.94 RECEIPTS STUDENT FEES -- CHARTER SCHOOL REVENUE -- ACCOUNTS RECEIVABLE 26,908.76 INTEREST 295.59 1,617.83 SALE OF ASSETS -- -- TRANSFERS IN FROM OTHER ACCOUNTS 91,052.46 OTHER (ATTACH LIST) -- TOTAL RECEIPTS -- -- 295.59 -- 119,579.05 DISBURSEMENTS BUSINESS - ORDINARY OPERATIONS 34,492.21 CAPITAL IMPROVEMENTS -- PRE-PETITION DEBT -- TRANSFERS TO OTHER DIP ACCOUNTS -- 91,052.46 PAYMENTS MADE FOR SUNRISE EDU 32,718.50 OTHER (VOIDS) -- REORGANIZATION EXPENSES: ATTORNEY FEES -- ACCOUNTANT FEES -- OTHER PROFESSIONAL FEES -- U.S. TRUSTEE QUARTERLY FEE -- COURT COSTS -- TOTAL DISBURSEMENTS -- -- -- -- 158,263.17 ------------ ------------- ------------- ------------- ------------- ACCOUNT BALANCE - END OF MONTH -- -- 418,978.03 585,000.00 2,285,619.82 ============ ============= ============= ============= ============= THE FOLLOWING SECTION MUST BE FILLED OUT DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: TOTAL DISBURSEMENTS FROM ABOVE 158,263.17 LESS: TRANSFERS OUT TO OTHER DIP ACCOUNTS (91,052.46) LESS: PAYMENTS MADE FOR SUNRISE EDUCATIONAL SERVICES, INC. (32,718.50) PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. PAYMENTS FROM ESCROW OR 2-PARTY CHECKS) ---------------- TOTAL DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: 34,492.21 ================
2 THE TESSERACT GROUP (EXCL. SUNRISE) STATEMENT OF OPERATIONS FOR THE MONTH ENDING AUGUST 31, 2001 REVENUE Tuition and Fees Revenue $ -- Refunds/Returns -- Discounts -- ------------ Total Revenue -- ------------ OPERATIONAL COSTS Salaries and Wages -- Taxes and Benefits -- Food Programs Expense -- Maintenance Expense -- Insurance Expense -- Rent Expense -- Utilities Expense -- ------------ Total Operational Costs -- ------------ GENERAL & ADMINISTRATIVE COSTS Bank Charges/Processing Fees-A -- Corporate Overhead 16,379.20 Corporate Overhead Allocated to Sunrise (8,190.00) Other Expenses -- ------------ Total General and Administrative Expenses 8,189.20 ------------ Other Income -- Interest Expense -- ------------ Net Interest and Other Income (Expense) -- ------------ Reorganization Expenses Professional Fees 13,481.52 Professional Fees Allocated to Sunrise (6,741.00) ------------ Total Reorganization Expenses 6,740.52 ------------ Net Income $ (14,929.72) ============ 3 THE TESSERACT GROUP (EXCL. SUNRISE) BALANCE SHEET AUGUST 31, 2001 ASSETS Current Assets Cash and Cash Equivalents $ 2,074,395.24 Accounts Receivable, net 1,841.67 Note Receivable from Nobel -- Prepaid Rent 6,400.00 Other Prepaid Expenses -- -------------- Total Current Assets 2,082,636.91 Investment in Sunrise 18,971,824.26 Property and Equipment, net -- Deposits and Other Assets 1,512,992.80 -------------- Total Assets $22,567,453.97 ============== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable $ 11,784.94 Accrued Payroll and Benefits 997,967.94 Accrued Payroll Taxes -- Deferred Revenue and Tuition Deposits 885,140.74 -------------- Total Current Liabilities 1,894,893.62 -------------- Pre-Petition Liabilities Line of Credit 5,848,822.65 Accounts Payable 3,989,847.38 Other Unsecured Notes Payable 865,500.00 Other Current Liabilities 4,539,075.42 Long-Term Debt 1,696,967.85 -------------- Total Pre-Petition Liabilities 16,940,213.30 -------------- Due to Sunrise 2,991,732.41 Reserve for Closed Schools 504,099.10 Other Long-Term Obligations 13,999.76 -------------- Total Long-Term Liabilities 3,509,831.27 -------------- Total Liabilities 22,344,938.19 -------------- Shareholders' Equity Pre-Petition Shareholders' Equity 5,334,668.03 Post Petition Retained Deficit (5,112,152.25) -------------- Total Shareholders' Equity 222,515.78 -------------- Total Liabilities and Shareholders' Equity $22,567,453.97 ============== 4 CASE NUMBER: B-00-10938-ECF-RTB STATUS OF ASSETS 0-30 31-60 60+ ACCOUNTS RECEIVABLE TOTAL DAYS DAYS DAYS - ------------------- ----- ---- ---- ---- TOTAL ACCOUNTS RECEIVABLE 1,842 1,842 -- -- LESS: AMOUNT CONSIDERED UNCOLLECTIBLE -- -- ACCOUNTS RECEIVABLE (NET) 1,842 1,842 -- -- SCHEDULED CURRENT FIXED ASSETS AMOUNT ADDITIONS DELETIONS AMOUNT - ------------ --------- --------- --------- ------ REAL PROPERTY 1,867,408 1,867,408 (0) BUILDING IMPROVEMENTS/PLANT 846,395 16,066 862,461 (0) ACCUMULATED DEPRECIATION (136,823) (33,112) (169,935) 0 NET BUILDINGS/PLANT 709,573 (17,047) 692,526 (0) EQUIPMENT 5,466,149 11,637 5,477,786 (0) ACCUMULATED DEPRECIATION (2,404,930) (533,426) (2,938,357) 0 NET EQUIPMENT 3,061,218 (521,789) 2,539,429 (0) AUTOS & VEHICLES 557,586 557,586 -- ACCUMULATED DEPRECIATION (259,791) (65,272) (325,063) 0 NET AUTOS & VEHICLES 297,795 (65,272) 232,523 0 NOTE: Reduction in assets due to sale of Private and Charter School assets. 5 CASE NUMBER: B-00-10938-ECF-RTB STATUS OF LIABILITIES AND SENSITIVE PAYMENTS POSTPETITION UNPAID OBLIGATIONS TOTAL 0-30 31-60 61-90 91+ ------------------ --------- --------- ----- ----- ------ ACCOUNTS PAYABLE 11,785 (2,286) -- -- 13,935 TAXES PAYABLE -- -- ACCRUED SALARIES AND BENEFITS 997,968 997,968 PREPAID TUITION AND DEPOSITS 885,141 885,141 SECURED DEBT OTHER (ATTACH LIST) --------- --------- ----- ----- ------ TOTAL POST-PETITION LIABILITIES 1,894,894 1,880,959 -- -- 13,935 ========= ========= ===== ===== ====== PAYMENTS TO INSIDERS AND PROFESSIONALS INSIDERS AMOUNT PD TOTAL PD NAME REASON FOR PAYMENT THIS MONTH TO DATE - ---- ------------------ ---------- ---------- Lucian Spataro Wages and Exp. Reimbursement -- 129,134.79 Ernie Recsetar Wages -- 22,000.00 Michael Lynch Wages and Exp. Reimbursement 7,633.37 191,881.05 Gary Lilyquist Wages and Exp. Reimbursement -- 80,239.99 --------- ---------- TOTAL PAYMENTS TO INSIDERS 7,633.37 423,255.83 ========= ========== PROFESSIONALS
DATE OF COURT TOTAL ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED NAME PAYMENT APPROVED PAID TO DATE & UNPAID - ---- ------- -------- ---- ------- -------- Bryan Cave 21,181.86 21,181.86 287,232.72 Engleman & Berger, PC 9,292.60 9,292.60 97,174.68 Field, Sarvas, King & Coleman 962.13 962.13 7,853.48 Mariscal, Weeks, McIntyre 18,619.26 18,619.26 18,619.26
6 CASE NUMBER: B-00-10938-ECF-RTB CASE STATUS QUESTIONNAIRE YES NO --- -- HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT? NO ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES? NO ARE ANY WAGE PAYMENTS PAST DUE? NO ARE ANY U.S. TRUSTEE QUARTERLY FEES DELINQUENT? NO CURRENT NUMBER OF EMPLOYEES: 1 INSURANCE CARRIER AND PERIOD EXPIRATION PAYMENT AMOUNT TYPE OF POLICY POLICY NUMBER COVERED DATE & FREQUENCY - -------------- ------------- ------- ---- ----------- WHAT STEPS HAVE BEEN TAKEN TO REMEDY ANY OF THE PROBLEMS THAT BROUGHT ABOUT THE CHAPTER 11 FILING? LIST ANY MATTERS THAT ARE DELAYING THE FILING OF A PLAN OF REORGANIZATION? 7 THE TESSERACT GROUP, INC. CASH FLOW ANALYSIS B-00-10938-ECF-RTB BEGINNING FUNDS AVAILABLE: $ (240,829.42) ------------- Cash In: Credit Card Deposit (Private) -- Credit Card Deposit (Charter) -- Regular Deposits (Private) -- Regular Deposits (Charter) -- Regular Deposits (Corporate) 26,908.76 Interest 1,617.83 ------------- Daily Cash In: $ 28,526.59 ============= Cash Out: Charter A/P -- Private A/P -- Corporate A/P 65,437.00 Corporate A/P (allocated to Sunrise) (32,718.50) TesseracT Payroll -- Charter Payroll -- Medical Claims -- Banking Fees 1,773.71 LTC Payment -- Voids -- ------------- Daily Cash Out: $ 34,492.21 ============= ------------- Net Cash In/Out: $ (5,965.62) ------------- ENDING FUNDS AVAILABLE: $ (246,795.04) ============= 8 THE TESSERACT GROUP, INC. CONSOLIDATED CASH FLOW ANALYSIS TOTAL FOR OCTOBER 2001 BEGINNING FUNDS AVAILABLE: $ 2,324,303.94 ---------------- Cash In: Telecheck $ -- Credit Card Deposit (Preschools) -- Credit Card Deposit (Private) -- Credit Card Deposit (Charter) -- Regular Deposits (Preschools) -- Regular Deposits (Private) -- Regular Deposits (Charter) -- Regular Deposits (Corporate) 26,908.76 Other Deposit (Preschool) -- Interest 1,617.83 Interest on LTC Acct -- Voids -- ---------------- Daily Cash In: $ 28,526.59 ================ Cash Out: Preschool A/P $ -- Charter A/P -- Private A/P -- Corporate A/P 65,437.00 TesseracT Payroll -- Preschool Payroll -- Charter Payroll -- College PR -- Preschool NSF -- Medical Claims -- Banking Fees 1,773.71 LTC Payment -- LTC Fees -- ---------------- Daily Cash Out: $ 67,210.71 ================ Net Cash In/Out: $ (38,684.12) ---------------- ENDING FUNDS AVAILABLE: $ 2,285,619.82 ================ 9 CORPORATE COMPANY VENDOR CHECK REGISTER REPORT PAYABLES MANAGEMENT * Voided Checks
AUDIT CHECK NUMBER VENDOR ID VENDOR CHECK NAME CHECK DATE CHECKBOOK ID TRAIL CODE AMOUNT - ------------ --------- ----------------- ---------- ------------ ---------- ------ 200013085 MOOBRI000-B MOORE, BRIAN 10/10/2001 OPERATING2 PMCHK00000338 $856.80 200013094 AT&T78522-B AT&T - 78225 10/16/2001 OPERATING2 PMCHK00000339 $7.79 200013095 BEM000000-B BEMISH,KAREN 10/16/2001 OPERATING2 PMCHK00000339 $180.00 200013096 CAVBRY000-B BRYAN CAVE LLP 10/16/2001 OPERATING2 PMCHK00000339 $21,181.86 200013097 ENGBER000-B ENGELMAN BERGER,P.C. 10/16/2001 OPERATING2 PMCHK00000339 $6,083.98 200013098 FIERC0000-B FIELD,SARVAS,KING,COLEMAN,PC 10/16/2001 OPERATING2 PMCHK00000339 $962.13 200013099 HORDIS000-B HORIZON DISTRIBUTION 10/16/2001 OPERATING2 PMCHK00000339 $67.91 200013100 MARWEE000-B MARISCAL,WEEKS,MCINTYRE 10/16/2001 OPERATING2 PMCHK00000339 $14,543.68 200013101 RIVJUD000-B JUDI RIVERA 10/16/2001 OPERATING2 PMCHK00000339 $290.00 200013102 IKOOFF001-B IKON OFFICE SOLUTION (AZ) 10/17/2001 OPERATING2 PMCHK00000340 $4,550.89 200013103 LYN000000-B LYNCH,MICHAEL 10/17/2001 OPERATING2 PMCHK00000340 $807.37 200013104 MARWEE000-B MARISCAL,WEEKS,MCINTYRE 10/17/2001 OPERATING2 PMCHK00000340 $2,237.79 200013106 ESCJOS000-B JOSE ESCAGEDA 10/18/2001 OPERATING2 PMCHK00000342 $50.00 200013107 ACMLOC000-B ACME LOCKSMITH CO 10/18/2001 OPERATING2 PMCHK00000343 $85.00 200013108 BEMJOH000-B JOHN BEMISH 10/19/2001 OPERATING2 PMCHK00000344 $340.00 200013109 KUTROC000-B KUTAK ROCK 10/19/2001 OPERATING2 PMCHK00000344 $113.34 200013110 RIVJUD000-B JUDI RIVERA 10/19/2001 OPERATING2 PMCHK00000344 $220.00 200013111 ENGBER000-B ENGELMAN BERGER,P.C. 10/24/2001 OPERATING2 PMCHK00000345 $3,208.62 2000131114 ADP, INC000-B ADP INC 10/26/2001 OPERATING2 PMCHK00000346 $241.05 2000131115 BEMJOH000-B JOHN BEMISH 10/26/2001 OPERATING2 PMCHK00000346 $320.00 2000131116 LYN000000-B LYNCH,MICHAEL 10/26/2001 OPERATING2 PMCHK00000346 $6,826.00 2000131117 RIVJUD000-B JUDI RIVERA 10/26/2001 OPERATING2 PMCHK00000346 $200.00 200013112 RSMMCG000-B RSM MCGLADREY 10/24/2001 OPERATING2 PMCHK00000345 $225.00 200013113 MARWEE000-B MARISCAL,WEEKS,MCINTYRE 10/24/2001 OPERATING2 PMCHK00000345 $1,837.79 REMIT000000000000115 ACAHAL000 ACADEMIC HALLMARKS 10/18/2001 PMCHK00000341 $0.00 REMIT000000000000116 ADTSEC000 ADT SECURITY - CO 10/18/2001 PMCHK00000341 $0.00 ---------- Total Checks: 26 Total Amount of Checks: $65,437.00 ==========
10 EX-99.6 8 ex99-6.txt SUNRISE OCTOBER 2001 MONTHLY REPORT Exhibit 99.6 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF ARIZONA In re: ) CASE NO. B-00-10939-ECF-RTB ) SUNRISE EDUCATIONAL SERVICES ) BUSINESS AND INDUSTRY ) MONTHLY OPERATING REPORT ) ) MONTH OF OCTOBER ) Debtor(s) ) DATE PETITION FILED: October 6, 2000 ) ) TAX PAYER ID NO. 4101581297 Nature of Debtor's Business: For Profit Educational Services DATE DISCLOSURE STATEMENT: FILED Not Yet Filed TO BE FILED To Be Determined ------------- ---------------- DATE PLAN OF REORGANIZATION: FILED Not Yet Filed TO BE FILED To Be Determined ------------- ---------------- I CERTIFY UNDER PENALTY OF PERJURY THAT THE FOLLOWING MONTHLY OPERATING REPORT AND THE ACCOMPANYING ATTACHMENTS ARE TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE. RESPONSIBLE PARTY: CEO - --------------------------------------- ---------- ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE Michael Lynch - --------------------------------------- ---------- PRINTED NAME OF RESPONSIBLE PARTY DATE PREPARER: Controller - --------------------------------------- ---------- ORIGINAL SIGNATURE OF PREPARER TITLE Douglass E. Snell - --------------------------------------- ---------- PRINTED NAME OF PREPARER DATE PERSON TO CONTACT REGARDING THIS REPORT: Douglass E. Snell --------------------------------------- PHONE NUMBER: 602-300-6257 --------------------------------------- ADDRESS: 1777 W. Camelback Rd., J109 Phoenix, AZ 85015 --------------------------------------- ORIGINAL OF REPORT IS FILED WITH THE COURT, COPY IS FILED WITH U.S. TRUSTEE'S OFFICE SUNRISE EDUCATIONAL SERVICES, INC. B-00-10939-ECF-RTB MONTH: OCTOBER 2001 RECEIPTS AND DISBURSEMENTS BANK ACCOUNTS ----------------------------------------- Amounts reported should be SUNRISE SUNRISE PMTS per the debtor's books, OPERATING MADE BY not per the bank statement #052-978-7889 TESSERACT TOTAL ------------- ------------ ----------- ACCOUNT BALANCE - BEGINNING OF MONTH -- -- RECEIPTS STUDENT FEES -- CHARTER SCHOOL REVENUE -- ACCOUNTS RECEIVABLE -- LOANS AND ADVANCES -- SALE OF ASSETS -- TRANSFERS IN FROM OTHER ACCOUNTS 32,718.50 32,718.50 OTHER (ATTACH LIST) -- TOTAL RECEIPTS -- 32,718.50 32,718.50 DISBURSEMENTS BUSINESS - ORDINARY OPERATIONS -- -- CAPITAL IMPROVEMENTS -- PRE-PETITION DEBT -- TRANSFERS TO OTHER DIP ACCOUNTS -- PAYMENTS MADE FOR SUNRISE EDU 32,718.50 32,718.50 OTHER (ATTACH LIST) -- REORGANIZATION EXPENSES: ATTORNEY FEES -- ACCOUNTANT FEES -- OTHER PROFESSIONAL FEES -- U.S. TRUSTEE QUARTERLY FEE -- COURT COSTS -- TOTAL DISBURSEMENTS -- 32,718.50 32,718.50 ----------- ----------- ----------- ACCOUNT BALANCE - END OF MONTH -- -- -- =========== =========== =========== THE FOLLOWING SECTION MUST BE FILLED OUT DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: TOTAL DISBURSEMENTS FROM ABOVE 32,718.50 LESS: TRANSFERS OUT TO OTHER DIP ACCOUNTS -- PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES ---------- TOTAL DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: 32,718.50 ========== 2 SUNRISE EDUCATIONAL SERVICES, INC. STATEMENT OF OPERATIONS FOR THE MONTH ENDING OCTOBER 31, 2001 REVENUE Tuition and Fees Revenue $ -- Government Revenue -- Refunds/Returns -- ------------ Total Revenue -- ------------ OPERATIONAL COSTS Taxes and Benefits -- Food Programs Expense -- Transportation Expenses -- Maintenance Expense -- Insurance Expense -- Security Services Expense -- Utilities Expense -- ------------ Total Operational Costs -- ------------ GENERAL & ADMINISTRATIVE COSTS Bank Charges/Processing Fees-A -- Allocated Corporate Overhead 8,190.00 Other Expenses -- ------------ Total General and Administrative Expenses 8,190.00 ------------ Gain (Loss) on Disposal of Assets -- Interest Expense -- Other Income (Expense) -- ------------ Net Interest and Other Income (Expense) -- ------------ Depreciation Expense -- ------------ Total Depreciation and Amortization -- ------------ REORGANIZATION EXPENSES Bankruptcy Fees -- Professional Fees Allocated 6,741.00 ------------ Total Reorganization Expenses 6,741.00 ------------ Net Income $ (14,931.00) ============ 3 SUNRISE EDUCATIONAL SERVICES, INC. BALANCE SHEET OCTOBER 31, 2001 ASSETS Current Assets Cash and Cash Equivalents $ -- Accounts Receivable, net -- Prepaid Rent -- Other Current Assets 1,785.00 ------------- Total Current Assets 1,785.00 Due From Tesseract 2,991,732.41 Property and Equipment, net 3,512.66 Deposits and Other Assets 116,372.11 ------------- Total Assets $3,113,402.18 ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities -- Accounts Payable $ (1,694.39) Checks in Process of Collection 136,889.43 Payroll and Related Accruals 135,324.00 Deferred Revenue and Tuition Deposits -- ------------- Total Current Liabilities 270,519.04 ------------- Pre-Petition Liabilities Accounts Payable 483,166.44 Other Current Liabilities 140,318.37 Long-Term Debt 5,546.62 ------------- Total Pre-Petition Liabilities 629,031.43 ------------- Reserve for Closed Schools 143,661.34 Other Long-Term Obligations 274,439.09 ------------- Total Long-Term Liabilities 418,100.43 ------------- Total Liabilities 1,317,650.90 ------------- Shareholders' Equity Pre-Petition Shareholders' Equity 933,361.98 Post Petition Retained Deficit 862,389.30 ------------- Total Shareholders' Equity 1,795,751.28 ------------- Total Liabilities and Shareholders' Equity $3,113,402.18 ============= 4 CASE NUMBER: B-00-10939-ECF-RTB STATUS OF ASSETS 0-30 31-60 60+ ACCOUNTS RECEIVABLE TOTAL DAYS DAYS DAYS - ------------------- ----- ---- ---- ---- TOTAL ACCOUNTS RECEIVABLE -- -- -- -- LESS: AMOUNT CONSIDERED UNCOLLECTIBLE ACCOUNTS RECEIVABLE (NET) -- -- -- -- SCHEDULED CURRENT FIXED ASSETS AMOUNT ADDITIONS DELETIONS AMOUNT - ------------ ------ --------- --------- ------ REAL PROPERTY BUILDING IMPROVEMENTS/PLANT 1,020,140 56,214 1,076,355 0 ACCUMULATED DEPRECIATION (413,993) (115,058) (529,051) (0) NET BUILDINGS/PLANT 606,147 (58,844) 547,304 (0) EQUIPMENT 755,300 24,266 776,055 3,512 ACCUMULATED DEPRECIATION (511,115) (130,029) (641,144) (0) NET EQUIPMENT 244,186 (105,763) 134,911 3,512 AUTOS & VEHICLES 953,839 953,839 0 ACCUMULATED DEPRECIATION (625,670) (79,967) (705,637) (0) NET AUTOS & VEHICLES 328,170 (79,967) 248,202 0 5 CASE NUMBER: B-00-10939-ECF-RTB STATUS OF LIABILITIES AND SENSITIVE PAYMENTS POSTPETITION UNPAID OBLIGATIONS TOTAL 0-30 31-60 61-90 91+ ------------------ ----- ---- ----- ----- --- ACCOUNTS PAYABLE (1,694) (13,577) -- 7,312 4,571 TAXES PAYABLE -- -- ACCRUED PAYROLL AND BENEFITS 135,324 135,324 PREPAID TUITION -- -- SECURED DEBT -- OUTSTANDING A/P CHECKS 136,889 136,889 OTHER (ATTACH LIST) -- TOTAL POST-PETITION LIABILITIES 270,519 258,636 -- 7,312 4,571 PAYMENTS TO INSIDERS AND PROFESSIONALS INSIDERS AMOUNT PD TOTAL PD NAME REASON FOR PAYMENT THIS MONTH TO DATE - ---- ------------------ ---------- ------- NONE TOTAL PAYMENTS TO INSIDERS -- -- PROFESSIONALS DATE OF COURT TOTAL ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED NAME PAYMENT APPROVED PAID TO DATE & UNPAID - ---- ------- -------- ---- ------- -------- NONE 6 CASE NUMBER: B-00-10939-ECF-RTB CASE STATUS QUESTIONNAIRE YES NO --- -- HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT? NO ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES? NO ARE ANY WAGE PAYMENTS PAST DUE? NO ARE ANY U.S. TRUSTEE QUARTERLY FEES DELINQUENT? NO CURRENT NUMBER OF EMPLOYEES: 0 INSURANCE CARRIER AND PERIOD EXPIRATION PAYMENT AMOUNT TYPE OF POLICY POLICY NUMBER COVERED DATE & FREQUENCY - -------------- ------------- ------- ---- ----------- WHAT STEPS HAVE BEEN TAKEN TO REMEDY ANY OF THE PROBLEMS THAT BROUGHT ABOUT THE CHAPTER 11 FILING? LIST ANY MATTERS THAT ARE DELAYING THE FILING OF A PLAN OF REORGANIZATION? 7 SUNRISE EDUCATIONAL SERVICES, INC. CASH FLOW ANALYSIS B-00-10939-ECF-RTB BEGINNING FUNDS AVAILABLE: $2,565,133.36 ------------- Cash In: Telecheck $ -- Credit Card Deposit (Preschools) -- Regular Deposits (Preschools) -- Other Deposit (Preschool) -- ------------- Daily Cash In: $ -- ============= Cash Out: Preschool A/P $ -- Preschool Payroll -- Corporate A/P (allocated) 32,718.50 Preschool NSF -- ------------- Daily Cash Out: $ 32,718.50 ============= Net Cash In/Out: $ (32,718.50) ------------- ENDING FUNDS AVAILABLE: $2,532,414.86 ============= 8 -----END PRIVACY-ENHANCED MESSAGE-----