-----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, RaFLpxYMpOEc16c88KcuK0d5q0/KRvExKy49bG9AWAq55vxs8iqZ5xZWVDevZu0B +dn/BN6A2Du840i3EsrOVg== 0000950147-02-000163.txt : 20020414 0000950147-02-000163.hdr.sgml : 20020414 ACCESSION NUMBER: 0000950147-02-000163 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20020201 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020206 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: 02527853 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-8049.txt CURRENT REPORT DATED 2/1/02 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) February 1, 2002 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 November and December 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 and 99.4. ITEM 7. FINANCIAL STATEMENTS; EXHIBITS. Exhibit No. ----------- 99.1 Monthly Operating Report of The TesseracT Group, Inc. for November 2001. 99.2 Monthly Operating Report of Sunrise for November 2001. 99.3 Monthly Operating Report of The TesseracT Group, Inc. for December 2001. 99.4 Monthly Operating Report of Sunrise for December 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: February 4, 2002 By: /s/ Douglass E. Snell ------------------------------------ Douglass E. Snell Controller EX-99.1 3 ex99-1.txt MONTHLY OPERATING REPORT 11/01 - TESSERACT 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 NOVEMBER ) 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: NOVEMBER 2001 RECEIPTS AND DISBURSEMENTS
BANK ACCOUNTS AMOUNTS REPORTED SHOULD BE ------------------------------------------------------------------------------------------- PER THE DEBTOR'S BOOKS, NATIONAL GROUP GROUP GROUP TESSERACT GROUP TESSERACT not per the bank statement DEPOSITORY DEPOSITORY MEDICAL PAYROLL OPERATING CHARTER #944-010-7759 #022-922-6741 #022-922-6576 #022-922-6576 #022-978-8101 #022-922-6808 ------------ ------------ ------------ ------------ ------------ ------------ ACCOUNT BALANCE - BEGINNING OF MONTH -- 1,281,641.79 -- -- -- -- RECEIPTS STUDENT FEES -- CHARTER SCHOOL REVENUE -- ACCOUNTS RECEIVABLE 54,823.85 INTEREST 827.57 -- SALE OF ASSETS TRANSFERS IN FROM OTHER ACCOUNTS 54,823.85 -- -- 68,229.25 -- OTHER (ATTACH LIST) TOTAL RECEIPTS 54,823.85 55,651.42 -- -- 68,229.25 -- DISBURSEMENTS BUSINESS - ORDINARY OPERATIONS -- -- -- 34,114.63 -- CAPITAL IMPROVEMENTS PRE-PETITION DEBT TRANSFERS TO OTHER DIP ACCOUNTS 54,823.85 68,229.25 -- PAYMENTS MADE FOR SUNRISE EDU -- 34,114.62 OTHER (VOIDS) REORGANIZATION EXPENSES: ATTORNEY FEES ACCOUNTANT FEES OTHER PROFESSIONAL FEES U.S. TRUSTEE QUARTERLY FEE COURT COSTS TOTAL DISBURSEMENTS 54,823.85 68,229.25 -- -- 68,229.25 -- ------------ ------------ ------------ ------------ ------------ ------------ ACCOUNT BALANCE - END OF MONTH -- 1,269,063.96 -- -- -- -- ============ ============ ============ ============ ============ ============ BANK ACCOUNTS AMOUNTS REPORTED SHOULD BE ---------------------------------------------------------------------------- PER THE DEBTOR'S BOOKS, CHARTER FIRST FEDERAL CREDITOR not per the bank statement EXTRACURRICULAR CREDIT UNION RESERVE NE CAPITAL #022-922-7442 #4002-0270-922 #052-980-2118 RESERVE TOTAL ------------ ------------ ------------ ------------ ------------ ACCOUNT BALANCE - BEGINNING OF MONTH -- -- 418,978.03 585,000.00 2,285,619.82 RECEIPTS STUDENT FEES -- CHARTER SCHOOL REVENUE -- ACCOUNTS RECEIVABLE 54,823.85 INTEREST 275.58 1,103.15 SALE OF ASSETS -- -- TRANSFERS IN FROM OTHER ACCOUNTS 123,053.10 OTHER (ATTACH LIST) -- TOTAL RECEIPTS -- -- 275.58 -- 178,980.10 DISBURSEMENTS BUSINESS - ORDINARY OPERATIONS 34,114.63 CAPITAL IMPROVEMENTS -- PRE-PETITION DEBT -- TRANSFERS TO OTHER DIP ACCOUNTS -- 123,053.10 PAYMENTS MADE FOR SUNRISE EDU 34,114.62 OTHER (VOIDS) -- REORGANIZATION EXPENSES: ATTORNEY FEES -- ACCOUNTANT FEES -- OTHER PROFESSIONAL FEES -- U.S. TRUSTEE QUARTERLY FEE -- COURT COSTS -- TOTAL DISBURSEMENTS -- -- -- -- 191,282.35 ------------ ------------ ------------ ------------ ------------ ACCOUNT BALANCE - END OF MONTH -- -- 419,253.61 585,000.00 2,273,317.57 ============ ============ ============ ============ ============ THE FOLLOWING SECTION MUST BE FILLED OUT DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: TOTAL DISBURSEMENTS FROM ABOVE 191,282.35 LESS: TRANSFERS OUT TO OTHER DIP ACCOUNTS (123,053.10) LESS: PAYMENTS MADE FOR SUNRISE EDUCATIONAL SERVICES, INC. (34,114.62) PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. PAYMENTS FROM ESCROW OR 2-PARTY CHECKS) ------------ TOTAL DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: 34,114.63 ============
2 The Tesseract Group (excl. Sunrise) Statement of Operations For the Month Ending November 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 55,355.45 Corporate Overhead Allocated to Sunrise (27,678.00) Other Expenses -- ---------- Total General and Administrative Expenses 27,677.45 ---------- Other Income 77,060.84 Interest Expense -- ---------- Net Interest and Other Income (Expense) 77,060.84 ---------- Reorganization Expenses Professional Fees 28,210.38 Professional Fees Allocated to Sunrise (14,105.00) ---------- Total Reorganization Expenses 14,105.38 ---------- Net Income $35,278.01 ========== 3 The Tesseract Group (excl. Sunrise) Balance Sheet November 30, 2001 ASSETS Current Assets Cash and Cash Equivalents $ 2,106,343.50 Accounts Receivable, net 5,841.67 Note Receivable from Nobel -- Prepaid Rent 6,400.00 Other Prepaid Expenses -- -------------- Total Current Assets 2,118,585.17 Investment in Sunrise 18,971,824.26 Property and Equipment, net -- Deposits and Other Assets 1,512,992.80 -------------- Total Assets $22,603,402.23 ============== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable $ 15,777.43 Accrued Payroll and Benefits 998,366.69 Accrued Payroll Taxes -- Deferred Revenue and Tuition Deposits 885,140.74 -------------- Total Current Liabilities 1,899,284.86 -------------- Pre-Petition Liabilities Line of Credit 5,848,822.65 Accounts Payable 3,993,226.45 Other Unsecured Notes Payable 865,500.00 Other Current Liabilities 4,688,067.54 Long-Term Debt 1,696,967.85 -------------- Total Pre-Petition Liabilities 17,092,584.49 -------------- Due to Sunrise 2,835,640.23 Reserve for Closed Schools 504,099.10 Other Long-Term Obligations 13,999.76 -------------- Total Long-Term Liabilities 3,353,739.09 -------------- Total Liabilities 22,345,608.44 -------------- Shareholders' Equity Pre-Petition Shareholders' Equity 5,334,668.03 Post Petition Retained Deficit (5,076,874.24) -------------- Total Shareholders' Equity 257,793.79 -------------- Total Liabilities and Shareholders' Equity $22,603,402.23 ============== 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 5,842 5,842 -- -- LESS: AMOUNT CONSIDERED UNCOLLECTIBLE - -- ACCOUNTS RECEIVABLE (NET) 5,842 5,842 -- -- 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 15,777 2,121 245 -- 13,412 TAXES PAYABLE -- -- ACCRUED SALARIES AND BENEFITS 998,367 998,367 PREPAID TUITION AND DEPOSITS 885,141 885,141 SECURED DEBT OTHER (ATTACH LIST) --------- --------- ---- ---- ------ TOTAL POST-PETITION LIABILITIES 1,899,285 1,885,628 245 -- 13,412 ========= ========= ==== ==== ====== 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 17,873.52 209,754.57 Gary Lilyquist Wages and Exp. Reimbursement -- 80,239.99 --------- ---------- TOTAL PAYMENTS TO INSIDERS 17,873.52 441,129.35 ========= ========== PROFESSIONALS
DATE OF COURT TOTAL ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED NAME PAYMENT APPROVED PAID TO DATE & UNPAID - ---- ------- -------- ---- ------- -------- Bryan Cave 287,232.72 Engleman & Berger, PC 10,787.83 10,787.83 107,962.51 Field, Sarvas, King & Coleman 7,853.48 Mariscal, Weeks, McIntyre 6,962.55 6,962.55 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: 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 THE TESSERACT GROUP, INC. CASH FLOW ANALYSIS B-00-10938-ECF-RTB BEGINNING FUNDS AVAILABLE: $ (246,795.04) Cash In: Credit Card Deposit (Private) - Credit Card Deposit (Charter) - Regular Deposits (Private) - Regular Deposits (Charter) - Regular Deposits (Corporate) 54,823.85 Interest 1,103.15 ------------- Daily Cash In: $ 55,927.00 ============= Cash Out: Charter A/P - Private A/P - Corporate A/P 68,229.25 Corporate A/P (allocated to Sunrise) (34,114.63) TesseracT Payroll - Charter Payroll - Medical Claims - Banking Fees - LTC Payment - Voids - ------------- Daily Cash Out: $ 34,114.62 ============= Net Cash In/Out: $ 21,812.38 ------------- ENDING FUNDS AVAILABLE: $ (224,982.66) ============= 8 THE TESSERACT GROUP, INC. CONSOLIDATED CASH FLOW ANALYSIS TOTAL FOR November 2001 ------------- BEGINNING FUNDS AVAILABLE: $2,285,619.82 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) 54,823.85 Other Deposit (Preschool) -- Interest 1,103.15 Interest on LTC Acct -- Voids -- ------------- Daily Cash In: $ 55,927.00 ============= Cash Out: Preschool A/P $ -- Charter A/P -- Private A/P -- Corporate A/P 68,229.25 TesseracT Payroll -- Preschool Payroll -- Charter Payroll -- College PR -- Preschool NSF -- Medical Claims -- Banking Fees -- LTC Payment -- LTC Fees -- ------------- Daily Cash Out: $ 68,229.25 ============= Net Cash In/Out: $ (12,302.25) ------------- ENDING FUNDS AVAILABLE: $2,273,317.57 ============= 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 - ------------ --------- ----------------- ---------- ------------ ---------- ------ 200013118 AMERDEV000-B AMERICAN DEVELOPMENT 11/6/2001 OPERATING2 PMCHK00000347 $20.00 200013119 BEMJOH000-B JOHN BEMISH 11/6/2001 OPERATING2 PMCHK00000347 $200.00 200013120 RIVJUD000-B JUDI RIVERA 11/6/2001 OPERATING2 PMCHK00000347 $100.00 200013121 BEMJOH000-B JOHN BEMISH 11/8/2001 OPERATING2 PMCHK00000348 $100.00 200013123 MOOBRI000-B MOORE, BRIAN 11/8/2001 OPERATING2 PMCHK00000348 $200.00 200013124 QWEST000-B QWEST 11/8/2001 OPERATING2 PMCHK00000348 $99.26 200013125 RIVJUD000-B JUDI RIVERA 11/8/2001 OPERATING2 PMCHK00000348 $120.00 200013126 WICPIL000-B WICK PILCHER INSURANCE, INC. 11/8/2001 OPERATING2 PMCHK00000348 $1,170.00 200013128 LYN000000-B LYNCH,MICHAEL 11/8/2001 OPERATING2 PMCHK00000349 $6,826.60 200013129 LYN000000-B LYNCH,MICHAEL 11/8/2001 OPERATING2 PMCHK00000349 $274.67 200013136 SNOWSCH000-B SNOWFLAKE SCHOOL DISTRICT #5 11/19/2001 OPERATING2 PMCHK00000350 $4,000.00 200013149 BEMJOH000-B JOHN BEMISH 11/30/2001 OPERATING2 PMCHK00000351 $100.00 200013150 LYN000000-B LYNCH,MICHAEL 11/30/2001 OPERATING2 PMCHK00000351 $465.00 ---------- Total Checks: 13 Total Amount of Checks: $13,675.53 ==========
10 THE TESSERACT GROUP MANUAL CHECKS FOR THE MONTH ENDED NOVEMBER 31, 2001 NOVEMBER CHECK # PAYEE DATE AMOUNT - ------- ----- ---------- ---------- 200013131 Bonfiglio Consultants 11/9/2001 $ 2,925.00 200013132 Dodge Van Payoff 11/15/2001 $ 9,948.65 200013133 Mike Lynch 11/16/2001 $ 3,410.30 200013135 Judith Rivera 11/16/2001 $ 320.00 200013137 Mariscal Weeks 11/20/2001 $ 6,962.55 200013138 Engelman/Berger 11/20/2001 $10,787.83 200013139 Michael Lynch 11/20/2001 $ 70.35 200013140 AT&T 11/20/2001 $ 40.88 200013142 AT&T 11/20/2001 $ 1,600.00 200013143 John Bemish 11/26/2001 $ 160.00 200013144 Judith Rivera 11/26/2001 $ 280.00 200013145 Borg Holdings 11/27/2001 $ 3,721.56 200013146 U.S. Trustee 11/29/2001 $ 7,500.00 200013148 Michael Lynch 11/30/2001 $ 6,826.60 ---------- $54,553.72 ========== 11 EX-99.2 4 ex99-2.txt MONTHLY OPERATING REPORT 11/02 - SUNRISE 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 NOVEMBER ) 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: NOVEMBER 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 -- 34,114.62 34,114.62 OTHER (ATTACH LIST) -- TOTAL RECEIPTS -- 34,114.62 34,114.62 DISBURSEMENTS BUSINESS - ORDINARY OPERATIONS -- -- CAPITAL IMPROVEMENTS -- PRE-PETITION DEBT -- TRANSFERS TO OTHER DIP ACCOUNTS -- PAYMENTS MADE FOR SUNRISE EDU 34,114.62 34,114.62 OTHER (ATTACH LIST) -- REORGANIZATION EXPENSES: ATTORNEY FEES -- ACCOUNTANT FEES -- OTHER PROFESSIONAL FEES -- U.S. TRUSTEE QUARTERLY FEE -- COURT COSTS -- TOTAL DISBURSEMENTS 34,114.62 34,114.62 ----------- ----------- ----------- ACCOUNT BALANCE - END OF MONTH -- -- -- =========== =========== =========== THE FOLLOWING SECTION MUST BE FILLED OUT DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: TOTAL DISBURSEMENTS FROM ABOVE 34,114.62 LESS: TRANSFERS OUT TO OTHER DIP ACCOUNTS -- PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES ---------- TOTAL DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: 34,114.62 ========== 2 SUNRISE EDUCATIONAL SERVICES, INC. STATEMENT OF OPERATIONS FOR THE MONTH ENDING NOVEMBER 30, 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 27,678.00 Other Expenses -- ----------- Total General and Administrative Expenses 27,678.00 ----------- 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 14,105.00 ----------- Total Reorganization Expenses 14,105.00 ----------- Net Income $(41,783.00) =========== 3 SUNRISE EDUCATIONAL SERVICES, INC. BALANCE SHEET NOVEMBER 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 2,835,640.23 Property and Equipment, net 3,512.66 Deposits and Other Assets 116,372.11 ------------- Total Assets $2,957,310.00 ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities -- Accounts Payable $ (1,694.39) Checks in Process of Collection 13,208.97 Payroll and Related Accruals 135,324.00 Deferred Revenue and Tuition Deposits -- ------------- Total Current Liabilities 146,838.58 ------------- 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 1,193,970.44 ------------- Shareholders' Equity Pre-Petition Shareholders' Equity 942,733.26 Post Petition Retained Deficit 820,606.30 ------------- Total Shareholders' Equity 1,763,339.56 ------------- Total Liabilities and Shareholders' Equity $2,957,310.00 ============= 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) -- -- 11,883 TAXES PAYABLE -- -- ACCRUED PAYROLL AND BENEFITS 135,324 135,324 PREPAID TUITION -- -- SECURED DEBT -- OUTSTANDING A/P CHECKS 13,209 13,209 OTHER (ATTACH LIST) -- TOTAL POST-PETITION LIABILITIES 146,839 134,956 -- -- 11,883 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: $2,532,414.86 ------------- 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) 34,114.63 Preschool NSF -- ------------- Daily Cash Out: $ 34,114.63 ------------- Net Cash In/Out: $ (34,114.63) ------------- ENDING FUNDS AVAILABLE: $2,498,300.23 ============= 8 EX-99.3 5 ex99-3.txt MONTHLY OPERATING REPORT 12/01 - TESSERACT 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 DECEMBER ) 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: DECEMBER 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 -- 1,269,063.96 -- -- -- -- RECEIPTS STUDENT FEES -- CHARTER SCHOOL REVENUE -- ACCOUNTS RECEIVABLE 19,507.91 INTEREST 723.69 SALE OF ASSETS TRANSFERS IN FROM OTHER ACCOUNTS 19,507.91 -- -- 66,892.00 -- OTHER (ATTACH LIST) TOTAL RECEIPTS 19,507.91 20,231.60 -- -- 66,892.00 -- DISBURSEMENTS BUSINESS - ORDINARY OPERATIONS -- -- -- 33,446.00 -- CAPITAL IMPROVEMENTS PRE-PETITION DEBT TRANSFERS TO OTHER DIP ACCOUNTS 19,507.91 66,892.00 -- PAYMENTS MADE FOR SUNRISE EDU. -- 33,446.00 OTHER (VOIDS) REORGANIZATION EXPENSES: ATTORNEY FEES ACCOUNTANT FEES OTHER PROFESSIONAL FEES U.S. TRUSTEE QUARTERLY FEE COURT COSTS TOTAL DISBURSEMENTS 19,507.91 66,892.00 -- -- 66,892.00 -- ------------ ------------- ----------- ------------ ------------ ------------- ACCOUNT BALANCE - END OF MONTH -- 1,222,403.56 -- -- -- -- ============ ============= =========== ============ ============ ============= 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 -- -- 419,253.61 585,000.00 2,273,317.57 RECEIPTS STUDENT FEES -- CHARTER SCHOOL REVENUE -- ACCOUNTS RECEIVABLE 19,507.91 INTEREST -- 723.69 SALE OF ASSETS -- -- TRANSFERS IN FROM OTHER ACCOUNTS 86,399.91 OTHER (ATTACH LIST) -- TOTAL RECEIPTS -- -- -- -- 106,631.51 DISBURSEMENTS BUSINESS - ORDINARY OPERATIONS 33,446.00 CAPITAL IMPROVEMENTS -- PRE-PETITION DEBT -- TRANSFERS TO OTHER DIP ACCOUNTS -- 86,399.91 PAYMENTS MADE FOR SUNRISE EDU 33,446.00 OTHER (VOIDS) -- REORGANIZATION EXPENSES: ATTORNEY FEES -- ACCOUNTANT FEES -- OTHER PROFESSIONAL FEES -- U.S. TRUSTEE QUARTERLY FEE -- COURT COSTS -- TOTAL DISBURSEMENTS -- -- -- -- 153,291.17 ------------ ------------- ------------- ------------- ------------- ACCOUNT BALANCE - END OF MONTH -- -- 419,253.61 585,000.00 2,226,657.17 ============ ============= ============= ============= ============= THE FOLLOWING SECTION MUST BE FILLED OUT DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: TOTAL DISBURSEMENTS FROM ABOVE 153,291.91 LESS: TRANSFERS OUT TO OTHER DIP ACCOUNTS (86,399.91) LESS: PAYMENTS MADE FOR SUNRISE EDUCATIONAL SERVICES, INC. (33,446.00) PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. PAYMENTS FROM ESCROW OR 2-PARTY CHECKS) ---------------- TOTAL DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: 33,446.00 ================
2 THE TESSERACT GROUP (EXCL. SUNRISE) STATEMENT OF OPERATIONS FOR THE MONTH ENDING DECEMBER 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 18,355.11 Corporate Overhead Allocated to Sunrise (9,178.00) Other Expenses -- ------------ Total General and Administrative Expenses 9,177.11 ------------ Other Income 13,962.68 Interest Expense -- ------------ Net Interest and Other Income (Expense) 13,962.68 ------------ Reorganization Expenses Professional Fees 45,203.71 Professional Fees Allocated to Sunrise (22,602.00) ------------ Total Reorganization Expenses 22,601.71 ------------ Net Income $ (17,816.14) ============ 3 THE TESSERACT GROUP (EXCL. SUNRISE) BALANCE SHEET DECEMBER 31, 2001 ASSETS Current Assets Cash and Cash Equivalents $ 2,058,959.41 Accounts Receivable, net 5,841.67 Note Receivable from Nobel -- Prepaid Rent 6,400.00 Other Prepaid Expenses -- --------------- Total Current Assets 2,071,201.08 Investment in Sunrise 18,971,824.26 Property and Equipment, net -- Deposits and Other Assets 1,512,992.80 --------------- Total Assets $ 22,556,018.14 =============== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable $ 11,162.88 Accrued Payroll and Benefits 998,366.69 Accrued Payroll Taxes -- Deferred Revenue and Tuition Deposits 885,140.74 --------------- Total Current Liabilities 1,894,670.31 --------------- Pre-Petition Liabilities Line of Credit 5,848,822.65 Accounts Payable 4,000,053.05 Other Unsecured Notes Payable 865,500.00 Other Current Liabilities 4,688,067.54 Long-Term Debt 1,696,967.85 --------------- Total Pre-Petition Liabilities 17,099,411.09 --------------- Due to Sunrise 2,803,860.23 Reserve for Closed Schools 504,099.10 Other Long-Term Obligations 13,999.76 --------------- Total Long-Term Liabilities 3,321,959.09 --------------- Total Liabilities 22,316,040.49 --------------- Shareholders' Equity Pre-Petition Shareholders' Equity 5,334,668.03 Post Petition Retained Deficit (5,094,690.38) --------------- Total Shareholders' Equity 239,977.65 --------------- Total Liabilities and Shareholders' Equity $ 22,556,018.14 =============== 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 11,163 (2,249) -- -- 13,412 TAXES PAYABLE -- -- ACCRUED SALARIES AND BENEFITS 998,367 998,367 PREPAID TUITION AND DEPOSITS 885,141 885,141 SECURED DEBT OTHER (ATTACH LIST) --------- --------- ----- ----- ------ TOTAL POST-PETITION LIABILITIES 1,894,670 1,881,258 -- -- 13,412 ========= ========= ===== ===== ====== 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 14,089.41 223,843.98 Gary Lilyquist Wages and Exp. Reimbursement -- 80,239.99 ---------- ---------- TOTAL PAYMENTS TO INSIDERS 14,089.41 455,218.76 ========== ========== PROFESSIONALS
DATE OF COURT TOTAL ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED NAME PAYMENT APPROVED PAID TO DATE & UNPAID - ---- ------- -------- ---- ------- -------- Bryan Cave 15,348.42 15,348.42 302,581.14 Engleman & Berger, PC 17,553.28 17,553.28 125,515.79 Field, Sarvas, King & Coleman 7,853.48 Mariscal, Weeks, McIntyre 8,252.01 8,252.01 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: 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 THE TESSERACT GROUP, INC. CASH FLOW ANALYSIS B-00-10938-ECF-RTB BEGINNING FUNDS AVAILABLE: $ (224,982.66) ------------- Cash In: Credit Card Deposit (Private) -- Credit Card Deposit (Charter) -- Regular Deposits (Private) -- Regular Deposits (Charter) -- Regular Deposits (Corporate) 19,507.91 Interest 723.69 ------------- Daily Cash In: $ 20,231.60 ============= Cash Out: Charter A/P -- Private A/P -- Corporate A/P 66,892.00 Corporate A/P (allocated to Sunrise) (33,446.00) TesseracT Payroll -- Charter Payroll -- Medical Claims -- Banking Fees -- LTC Payment -- Voids -- ------------- Daily Cash Out: $ 33,446.00 ============= ------------- Net Cash In/Out: $ (13,214.40) ------------- ENDING FUNDS AVAILABLE: $ (238,197.06) ============= 8 THE TESSERACT GROUP, INC. CONSOLIDATED CASH FLOW ANALYSIS TOTAL FOR DECEMBER 2001 BEGINNING FUNDS AVAILABLE: $ 2,273,317.57 ---------------- 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) 19,507.91 Other Deposit (Preschool) -- Interest 723.69 Interest on LTC Acct -- Voids -- ---------------- Daily Cash In: $ 20,231.60 ================ Cash Out: Preschool A/P $ -- Charter A/P -- Private A/P -- Corporate A/P 66,892.00 TesseracT Payroll -- Preschool Payroll -- Charter Payroll -- College PR -- Preschool NSF -- Medical Claims -- Banking Fees -- LTC Payment -- LTC Fees -- ---------------- Daily Cash Out: $ 66,892.00 ================ Net Cash In/Out: $ (46,660.40) ---------------- ENDING FUNDS AVAILABLE: $ 2,226,657.17 ================ 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 200013153 ATTGENAZ000-B ATTORNEY GENERAL OFFICE-AZ 12/5/2001 OPERATING2 PMCHK00000352 $674.88 200013154 KUTROC000-B KUTAK ROCK 12/5/2001 OPERATING2 PMCHK00000352 $35.00 200013155 LYN000000-B LYNCH,MICHAEL 12/5/2001 OPERATING2 PMCHK00000352 $128.07 200013156 QWEST000-B QWEST 12/5/2001 OPERATING2 PMCHK00000352 $105.42 200013157 RECCON000-B RECEIVABLES CONTROL COPR 12/5/2001 OPERATING2 PMCHK00000352 $916.96 200013158 ADP, INC000-B ADP INC 12/6/2001 OPERATING2 PMCHK00000353 $2,084.80 200013159 BEM000000-B BEMISH,KAREN 12/6/2001 OPERATING2 PMCHK00000353 $19.33 200013160 CTCORP-AZ000-B CT CORPORATION-AZ 12/6/2001 OPERATING2 PMCHK00000353 $552.49 200013161 IMPFIN000-B IMPERIAL FINANCIAL PRINTING 12/6/2001 OPERATING2 PMCHK00000353 $245.00 200013162 BEMJOH000-B JOHN BEMISH 12/7/2001 OPERATING2 PMCHK00000354 $300.00 200013163 LYN000000-B LYNCH,MICHAEL 12/7/2001 OPERATING2 PMCHK00000354 $3,413.30 200013164 RIVJUD000-B JUDI RIVERA 12/7/2001 OPERATING2 PMCHK00000354 $460.00 --------- Total Checks: 12 Total Amount of Checks: $8,935.25 =========
10 THE TESSERACT GROUP MANUAL CHECKS FOR THE MONTH ENDED DECEMBER 31, 2001 DECEMBER CHECK # PAYEE DATE AMOUNT - ------- ----- ---- ------ 200013152 Jim Bonfiglio 12/3/2001 $ 4,050.00 200013165 Mike Lynch 12/10/2001 $ 308.14 200013166 AA American Development Corp. 12/10/2001 $ 1,625.00 200013167 Judith Rivera 12/12/2001 $ 580.00 200013168 Mike Lynch 12/13/2001 $ 3,413.30 200013170 Bryan Cave LLP 12/13/2001 $15,348.42 200013175 Mariscal Weeks McINtyre & Friedlander 12/13/2001 $ 8,252.01 200013176 Engleman Berger 12/13/2001 $17,553.28 200013169 Mike Lynch 12/29/2001 $ 6,826.60 ---------- $57,956.75 ========== 11 EX-99.4 6 ex99-4.txt MONTHLY OPERATING REPORT 12/01 - SUNRISE 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 DECEMBER ) 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: DECEMBER 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 -- 33,446.00 33,446.00 OTHER (ATTACH LIST) -- TOTAL RECEIPTS -- 33,446.00 33,446.00 DISBURSEMENTS BUSINESS - ORDINARY OPERATIONS -- -- CAPITAL IMPROVEMENTS -- PRE-PETITION DEBT -- TRANSFERS TO OTHER DIP ACCOUNTS -- PAYMENTS MADE FOR SUNRISE EDU 33,446.00 33,446.00 OTHER (ATTACH LIST) -- REORGANIZATION EXPENSES: ATTORNEY FEES -- ACCOUNTANT FEES -- OTHER PROFESSIONAL FEES -- U.S. TRUSTEE QUARTERLY FEE -- COURT COSTS -- TOTAL DISBURSEMENTS 33,446.00 33,446.00 ----------- ----------- ----------- ACCOUNT BALANCE - END OF MONTH -- -- -- =========== =========== =========== THE FOLLOWING SECTION MUST BE FILLED OUT DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: TOTAL DISBURSEMENTS FROM ABOVE 33,446.00 LESS: TRANSFERS OUT TO OTHER DIP ACCOUNTS -- PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES ---------- TOTAL DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: 33,446.00 ========== 2 SUNRISE EDUCATIONAL SERVICES, INC. STATEMENT OF OPERATIONS FOR THE MONTH ENDING DECEMBER 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 9,178.00 Other Expenses -- ----------- Total General and Administrative Expenses 9,178.00 ----------- 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 22,602.00 ----------- Total Reorganization Expenses 22.602.00 ----------- Net Income $(31,780.00) =========== 3 SUNRISE EDUCATIONAL SERVICES, INC. BALANCE SHEET DECEMBER 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 2,803,860.23 Property and Equipment, net 3,512.66 Deposits and Other Assets 116,372.11 ------------- Total Assets $2,925,530.00 ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities -- Accounts Payable $ (1,694.39) Checks in Process of Collection 13,208.97 Payroll and Related Accruals 135,324.00 Deferred Revenue and Tuition Deposits -- ------------- Total Current Liabilities 146,838.58 ------------- 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 1,193,970.44 ------------- Shareholders' Equity Pre-Petition Shareholders' Equity 942,733.26 Post Petition Retained Deficit 788,826.30 ------------- Total Shareholders' Equity 1,731,559.56 ------------- Total Liabilities and Shareholders' Equity $2,925,530.00 ============= 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) -- -- 11,883 TAXES PAYABLE -- -- ACCRUED PAYROLL AND BENEFITS 135,324 135,324 PREPAID TUITION -- -- SECURED DEBT -- OUTSTANDING A/P CHECKS 13,209 13,209 OTHER (ATTACH LIST) -- TOTAL POST-PETITION LIABILITIES 146,839 134,956 -- -- 11,883 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: $2,498,300.23 ------------- 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) 33,446.00 Preschool NSF -- ------------- Daily Cash Out: $ 33,446.00 ------------- Net Cash In/Out: $ (33,446.00) ------------- ENDING FUNDS AVAILABLE: $2,464,854.23 ============= 8 -----END PRIVACY-ENHANCED MESSAGE-----