EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm
Exhibit 99.1
 
MOR-1
   
UNITED STATES BANKRUPTCY COURT
     
CASE NAME:
In re Valence Technology, Inc.
   
PETITION DATE:
7/12/2012
   
CASE NUMBER: 12-11580     DISTRICT OF TEXAS: Western District    
PROPOSED PLAN DATE:
     
DIVISION:
     
 
MONTHLY OPERATING REPORT SUMMARY FOR MONTH
MONTH
 
07/13/2012 -07/31/2012
   
08/01/2012 - 8/31/2012
   
09/01/2012 - 09/30/2012
   
10/1/2012 - 10/31/2012
   
11/01/2012 - 11/30/2012
   
12/01/2012 - 12/31/2012
 
REVENUES (MOR-6)
    1,316,272.06       3,134,148.00       3,968,190.16       2,227,053.10                  
INCOME BEFORE INT; DEPREC./TAX (MOR-6)
    87,284.86       (380,729.74 )     (181,026.71 )     (497,600.02 )                
NET INCOME (LOSS) (MOR-6)
    75,905.59       (391,926.48 )     (192,018.70 )     (516,270.95 )                
PAYMENTS TO INSIDERS (MOR-9)
    53,600.03       97,225.58       84,425.83       84,959.95                  
PAYMENTS TO PROFESSIONALS (MOR-9)
    45,000.00       40,795.00       246,429.39       58,616.42                  
TOTAL DISBURSEMENTS (MOR-7)
  $ 1,301,597.76     $ 5,137,790.77     $ 4,513,176.38     $ 5,480,489.14                  
 
***The original of this document must be filed with the United States Bankruptcy Court and a copy must be sent to the United States Trustee***
 
      CIRCLE ONE
REQUIRED INSURANCE MAINTAINED
 
Are all accounts receivable being collected within terms?
Yes (No)
AS OF SIGNATURE DATE
 
EXP.
DATE
 
Are all post-petition liabilities, including taxes, being paid within terms?
(Yes) No
       
Have any pre-petition liabilities been paid?
Yes (No)
CASUALTY            YES (X ) NO ( )
 
September 30, 2013
 
If so, describe
   
LIABILITY             YES (X ) NO ( )
 
September 30, 2013
 
Are all funds received being deposited into DIP bank accounts?
(Yes) No
VEHICLE              YES (X ) NO ( )
 
September 30, 2013
 
Were any assets disposed of outside the normal course of business?
Yes (No)
WORKER'S           YES (X ) NO ( )
 
September 30, 2013
 
If so, describe
   
OTHER                  YES (X ) NO ( )
 
September 30, 2013
 
Are all U.S. Trustee Quarterly Fee Payments current?
(Yes) No
       
What is the status of your Plan of Reorganization?
In process; formulating the plan of reorganization.
 
ATTORNEY NAME:
Sabrina Streusand
 
I certify under penalty of perjury that the following complete
FIRM NAME:
Streusand, Landon & Ozburn LLP
 
Monthly Operating Report (MOR), consisting of MOR-1 through
ADDRESS:
811 Barton Springs Road
 
MOR-9 plus attachments, is true and correct.
 
Suite 811
           
CITY, STATE, ZIP:
Austin, TX 78704
 
SIGNED X _/S/ Donald E. Gottschalk                                                 TITLE: Acting Chief Financial Officer
TELEPHONE/FAX:
512-236-9900
   
(ORIGINAL SIGNATURE)
 
         
Donald E. Gottschalk
November 20, 2012
MOR-1         (PRINT NAME OF SIGNATORY) DATE    
 
 
 

 
 
CASE NAME:
In re Valence Technology, Inc.
           
CASE NUMBER:
12-11580
               
 
COMPARATIVE BALANCE SHEETS
ASSETS
 
FILING DATE*
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
 
   
7/12/2012
   
07/13/2012 -07/31/2012
   
08/01/2012 - 8/31/2012
   
09/01/2012 - 09/30/2012
   
10/1/2012 - 10/31/2012
   
11/01/2012 - 11/30/2012
   
12/01/2012 - 12/31/2012
 
CURRENT ASSETS
                                         
Cash
    722,092.00       1,623,815.79       830,972.01       617,097.14       985,993.98                  
Accounts Receivable, Net
    10,111,771.00       9,121,999.44       9,437,761.48       9,759,880.73       9,894,927.46                  
Inventory: Lower of Cost or Market
    6,887,264.00       8,325,057.66       8,047,808.68       6,836,157.63       6,257,683.38                  
Prepaid Expenses
    105,063.00       343,780.00       223,129.10       189,004.37       561,467.77                  
Investments
                                                       
Cure Payments**
                            40,000.00       140,000.00                  
Other ***
    28,079.00       28,078.58       28,078.58       306,499.65       270,000.00                  
TOTAL CURRENT ASSETS
    17,854,269.00       19,442,731.47       18,567,749.85       17,748,639.52       18,110,072.59                  
PROPERTY, PLANT & EQUIP. @ COST
    2,228,373.00       2,228,373.45       2,228,373.45       2,228,373.45       2,228,373.45                  
Less Accumulated Depreciation
    (1,997,313.00 )     (2,009,339.96 )     (2,019,310.26 )     (2,027,902.74 )     (2,036,458.18 )                
NET BOOK VALUE OF PP & E
    231,060.00       219,033.49       209,063.19       200,470.71       191,915.27                  
OTHER ASSETS
                                                       
1. Tax Deposits
    143,157.00       143,157.00       143,157.00       143,157.00       143,157.00                  
2. Investments in Subsidiaries
    6,532,959.00       7,012,289.94       6,587,703.61       7,464,349.89       8,888,550.66                  
3. Electric/Utility Deposit
            37,176.70       42,536.81       44,372.16       44,372.16                  
4. Security deposits & Other Personal Property Not Already Listed
    96,880.00       95,564.71       95,564.71       148,636.42       148,636.42                  
TOTAL ASSETS
  $ 24,858,325.00     $ 26,949,953.31     $ 25,645,775.17     $ 25,749,625.70       27,526,704.10                  
     
 * Per Schedules and Statement of Affairs
   
     
**Court-approved weekly cure payments totaling $70,000 to Kuehne + Nagel Logistics, NV and $70,000.00 Kuehne + Nagel, Inc.
     
***Pre-payment for production materials to Tianjin Lishen Batttery Joint-Stock Co., LTD.
                MOR-2
            Revised 07/01/98
 
 
 

 
 
CASE NAME:
In re Valence Technology, Inc.
           
CASE NUMBER:
12-11580
               
 
COMPARATIVE BALANCE SHEETS
LIABILITIES & OWNER'S
 
FILING DATE*
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
 
EQUITY
 
7/12/2012
   
07/13/2012 -07/31/2012
   
08/01/2012 - 8/31/2012
   
09/01/2012 - 09/30/2012
   
10/1/2012 - 10/31/2012
   
11/01/2012 - 11/30/2012
   
12/01/2012 - 12/31/2012
 
LIABILITIES
                                         
POST-PETITION LIABILITIES(MOR-4)           3,256,488.40       3,093,183.93       639,974.02       3,188,797.64                  
PRE-PETITION LIABILITIES
                                                     
Notes Payable - Secured
    69,101,830.00       69,101,830.00       69,101,830.00       69,101,829.80       69,101,829.80                  
Priority Debt
    10,833.00       10,833.00       10,833.00                                  
Federal Income Tax
                                                       
FICA/Withholding
                                                       
Unsecured Debt
    9,204,733.61       9,204,733.61       9,204,733.61       9,225,833.26       9,226,196.96                  
Other**
                            2,923,030.75       2,923,030.75                  
TOTAL PRE-PETITION LIABILITIES
    78,317,396.61       78,317,396.61       78,317,396.61       81,250,693.81       81,251,057.51                  
TOTAL LIABILITIES
    78,317,396.61       81,573,885.01       81,410,580.54       81,890,667.83       84,439,855.15                  
OWNER'S EQUITY (DEFICIT)
                                                       
PREFERRED STOCK
    8,609,999.72       8,609,999.72       8,609,999.72       8,609,999.72       8,609,999.72                  
COMMON STOCK
    171,779.77       171,792.59       171,792.59       171,792.59       171,792.59                  
ADDITIONAL PAID-IN CAPITAL
    549,886,180.17       549,922,620.70       549,991,928.45       550,028,573.30       550,055,604.04                  
RETAINED EARNINGS: Filing Date
    (612,127,031.27 )     (612,127,031.27 )     (612,127,031.27 )     (612,127,031.27 )     (612,127,031.27 )                
RETAINED EARNINGS: Post Filing Date
            75,905.59       (316,020.89 )     (508,039.59 )     (1,024,310.54 )                
RETAINED EARNINGS: Adjustment for intercompany receivables, payables & investment in foreign subsidiary elimination
            (1,277,219.03 )     (2,095,473.98 )     (2,316,336.88 )     (2,599,205.59 )                
TOTAL OWNER'S EQUITY (NET WORTH)
    (53,459,071.61 )     (54,623,931.70 )     (55,764,805.38 )     (56,141,042.13 )     (56,913,151.05 )                
Total LIABILITIES & OWNERS EQUITY
  $ 24,858,325.00     $ 26,949,953.31     $ 25,645,775.16     $ 25,749,625.70       27,526,704.10                  
 * Per Schedules and Statement of Affairs
**Pre-petition general ledger accrued expenses
 
                MOR-3
              Revised 07/01/98
 
 
 

 
 
   CASE NAME:
In re Valence Technology, Inc.
           
   CASE NUMBER:
12-11580
             
 
SCHEDULE OF POST-PETITION LIABILITIES
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
 
   
07/13/2012 -07/31/2012
   
08/01/2012 - 8/31/2012
   
09/01/2012-09/30/2012
   
10/1/2012 - 10/31/2012
   
11/01/2012 - 11/30/2012
   
12/01/2012 - 12/31/2012
 
TRADE ACCOUNTS PAYABLE
    107,476.70       70,198.59       107,579.38       300,514.04                
TAX PAYABLE
                                               
Federal Payroll Taxes
    28,458.65       39,681.67       45,224.65       44,977.67                  
State Payroll Taxes
    1,682.04       2,275.13       2,568.07       2,556.27                  
Ad Valorem Taxes
    146.74       146.74                                  
Other Taxes
    1,543.19       701.16       684.04       2,175.05                  
TOTAL TAXES PAYABLE
    31,830.62       42,804.70       48,476.76       49,708.99                  
Debtor-in-Possession Financing
    N/A       N/A               2,532,996.57                  
ACCRUED INTEREST PAYABLE
    N/A       N/A       1,701.90       7,755.44                  
ACCRUED PROFESSIONAL FEES*
    172,759.99       122,497.50       10,354.50       111,347.29                  
OTHER ACCRUED LIABILITIES
                                               
1. See attached Exhibit A
    2,944,421.09       2,857,683.14       471,861.48       186,475.31                  
2.
                                               
3.
                                               
TOTAL POST-PETITION LIABILITIES (MOR-3)
  $ 3,256,488.40     $ 3,093,183.93     $ 639,974.02     $ 3,188,797.64                  
   *
Amount restricted to court-approved professionals
         
          MOR-4
              Revised 07/01/98
 
 
 

 
 
    CASE NAME: In re Valence Technology, Inc.          
    CASE NUMBER:
12-11580
         
 
                 
AGING OF POST-PETITION LIABILITIES
             
                 
MONTH
   
October 31, 2012
             
                                       
DAYS
   
TOTAL
   
TRADE
   
FEDERAL
   
STATE
   
AD VALOREM,
   
OTHER
 
           
ACCOUNTS
   
TAXES
   
TAXES
   
OTHER TAXES
       
0-30       3,153,434.17       265,150.57       44,977.67       2,556.27       2,175.05       2,838,574.61  
31-60       21,833.37       21,833.37                                  
61-90       13,530.10       13,530.10                                  
91+                                                  
TOTAL
    $ 3,188,797.64     $ 300,514.04     $ 44,977.67     $ 2,556.27     $ 2,175.05     $ 2,838,574.61  
 
               
AGING OF ACCOUNTS RECEIVABLE
             
                                     
MONTH
 
07/13/2012 -
07/31/2012
   
08/01/2012 -
8/31/2012
   
09/01/2012 -
09/30/2012
   
10/1/2012 -
10/31/2012
   
11/01/2012 -
11/30/2012
   
12/01/2012 -
12/31/2012
 
                                     
0-30 DAYS
    1,178,943.84       3,033,959.88       3,963,069.92       2,182,852.01                  
31-60 DAYS
    4,033,882.35       975,630.13       1,819,159.45       3,691,032.60                  
61-90 DAYS
    11,189.95       1,745,351.79               345,975.35                  
91+ DAYS
    3,897,983.30       3,682,819.68       3,977,651.36       3,675,067.50                  
TOTAL
  $ 9,121,999.44     $ 9,437,761.48     $ 9,759,880.73     $ 9,894,927.46                  
             
 
MOR-5
        Revised 07/01/98
 
 
 

 
 
    CASE NAME: In re Valence Technology, Inc.          
    CASE NUMBER:
12-11580
         
 
   
STATEMENT OF INCOME (LOSS)
                   
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
FILING TO
 
   
07/13/2012 -07/31/2012
   
08/01/2012 - 8/31/2012
   
09/01/2012 - 09/30/2012
   
10/1/2012 - 10/31/2012
   
11/01/2012 - 11/30/2012
   
12/01/2012 - 12/31/2012
   
DATE
 
REVENUES (MOR-1)
    1,316,272.06       3,134,148.00       3,968,190.16       2,227,053.10                   10,645,663.32  
TOTAL COST OF REVENUES
    796,930.61       2,465,606.87       3,083,624.26       1,927,556.07                       8,273,717.81  
GROSS PROFIT
    519,341.45       668,541.13       884,565.90       299,497.03                       2,371,945.51  
OPERATING EXPENSES:
                                                       
Selling & Marketing
    70,901.36       164,235.20       98,979.44       75,719.14                       409,835.14  
General & Administrative
    236,481.17       637,456.99       503,881.76       514,486.74                       1,892,306.66  
Insiders Compensation
    53,600.03       97,225.58       84,425.83       84,959.95                       320,211.39  
Professional Fees
    45,000.00       40,795.00       246,429.39       58,616.42                       390,840.81  
Research & Development
    26,074.03       109,558.10       131,876.19       63,314.80                       330,823.12  
Other
                                                       
TOTAL OPERATING EXPENSES
    432,056.59       1,049,270.87       1,065,592.61       797,097.05                       3,344,017.12  
INCOME BEFORE INT, DEPR/TAX (MOR-1)
    87,284.86       (380,729.74 )     (181,026.71 )     (497,600.02 )                     (972,071.61 )
INTEREST EXPENSE REVERSAL
                    (4,286.00 )                             (4,286.00 )
DEPRECIATION
    6,359.24       9,970.30       8,592.48       8,555.44                       33,477.46  
OTHER (INCOME) EXPENSE*
    (204.04 )     (31.10 )     (10.67 )     7,745.13                       7,499.32  
OTHER ITEMS**
    5,224.06       1,257.54       6,696.18       2,370.36                       15,548.14  
TOTAL INT, DEPR & OTHER ITEMS
    11,379.27       11,196.74       10,991.99       18,670.93                       52,238.93  
NET INCOME BEFORE TAXES
    75,905.59       (391,926.48 )     (192,018.70 )     (516,270.95 )                     (1,024,310.54 )
FEDERAL INCOME TAXES
                                                       
NET INCOME (LOSS) (MOR-1)
  $ 75,905.59     $ (391,926.48 )   $ (192,018.70 )   $ (516,270.95 )                   $ (1,024,310.54 )
Accrual Accounting Required, Otherwise Footnote with Explanation.
         
* Includes interest income and DIP Loan Associated Fees
           
** Includes realized and unrealized gains and losses on foreign currency transactions
       
                MOR-6
            Revised 07/01/98
 
 
 

 
 
    CASE NAME: In re Valence Technology, Inc.          
    CASE NUMBER:
12-11580
         
 
CASH RECEIPTS AND
 
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
FILING TO
 
DISBURSEMENTS
 
07/13/2012 -07/31/2012
   
08/01/2012 - 8/31/2012
   
09/01/2012 - 09/30/2012
   
10/1/2012 - 10/31/2012
   
11/01/2012 - 11/30/2012
   
12/01/2012 - 12/31/2012
   
DATE
 
1. CASH-BEGINNING OF MONTH
  $ 722,091.73     $ 1,623,815.79     $ 830,972.01     $ 617,097.14                   $ 722,091.73  
RECEIPTS:
                                                     
2. CASH SALES
    39,815.65       118,975.84       23,175.26       14,377.09                     196,343.84  
3. COLLECTION OF ACCOUNTS RECEIVABLE
    2,163,506.17       2,718,765.49       3,647,415.37       2,082,817.80                       10,612,504.83  
4. LOANS & ADVANCES ***
                    600,000.00       3,600,000.00                       4,200,000.00  
5. SALE OF ASSETS
                                                       
6. OTHER (attach list) - See Attached Exhibit B
            1,507,205.66       28,710.88       152,191.09                       1,688,107.63  
TOTAL RECEIPTS**
    2,203,321.82       4,344,946.99       4,299,301.51       5,849,385.98                       16,696,956.30  
(Withdrawal) Contribution by Individual Debtor MFR-2*
                                                       
DISBURSEMENTS:
                                                       
7. NET PAYROLL
    128,863.59       278,656.12       261,685.45       360,776.76                       1,029,981.92  
8. PAYROLL TAXES PAID
    44,629.25       89,926.43       92,187.34       85,353.48                       312,096.50  
9. SALES, USE & OTHER TAXES PAID
            7,017.49       17.07       655.42                       7,689.98  
10. SECURED/RENTAL/LEASES
    35,427.06       35,427.06       35,427.06       33,983.00                       140,264.18  
11. UTILITIES & TELEPHONE
    28,612.95       22,670.79       22,097.51       26,753.99                       100,135.24  
12. INSURANCE
    55,288.02       56,918.68       55,592.95       401,621.87                       569,421.52  
13. INVENTORY PURCHASES
    322,744.40       1,188,050.64       1,080,000.00       1,620,000.00                       4,210,795.04  
14. VEHICLE EXPENSES
                                                       
15. TRAVEL & ENTERTAINMENT
            24,686.76       2,415.85       10,683.34                       37,785.95  
16. REPAIRS, MAINTENANCE & SUPPLIES
    5,342.36       19,401.72       7,218.17       48,407.84                       80,370.09  
17. ADMINISTRATIVE & SELLING
    74,240.35       142,771.07       117,683.95       180,450.97                       515,146.34  
18. OTHER (attach list) - See Attached Exhibit C
    557,316.78       3,122,657.01       2,467,025.59       2,528,570.17                       8,675,569.55  
TOTAL DISBURSEMENTS FROM OPERATIONS
    1,252,464.76       4,988,183.77       4,141,350.94       5,297,256.84                       15,679,256.31  
19. PROFESSIONAL FEES
    49,133.00       89,607.00       246,429.39       58,616.42                       443,785.81  
20. U.S. TRUSTEE FEES
                            13,000.00                       13,000.00  
21. OTHER REORGANIZATION EXPENSES (attach list) *Exhibit D
            60,000.00       125,396.05       111,615.88                       297,011.93  
TOTAL DISBURSEMENTS**
    1,301,597.76       5,137,790.77       4,513,176.38       5,480,489.14                       16,433,054.05  
22. NET CASH FLOW
    901,724.06       (792,843.78 )     (213,874.87 )     368,896.84                       263,902.25  
23. CASH - END OF MONTH (MOR-2)
  $ 1,623,815.79     $ 830,972.01     $ 617,097.14     $ 985,993.98                     $ 985,993.98  
   
* Applies to Individual debtors only
         
MOR-7
**Numbers for the current month should balance (match)
  Revised 07/01/98
   
RECEIPTS and CHECKS/OTHER DISBURSEMENTS lines on MOR-8
       
 
 
 

 
 
    CASE NAME: In re Valence Technology, Inc.          
    CASE NUMBER:
12-11580
         
 
   
CASH ACCOUNT RECONCILIATION
             
   
MONTH OF
   
October, 2012
                   
                               
BANK NAME
                             
ACCOUNT NUMBER
   #0351049270      #3300298835      #    
#486-02092-14 RR ZGQ
       
ACCOUNT TYPE
 
OPERATING
   
PAYROLL**
   
TAX
   
OTHER FUNDS***
   
TOTAL
 
BANK BALANCE
    721,572.04       4,612.81               30,724.32       756,909.17  
DEPOSITS IN TRANSIT
                                       
OUTSTANDING CHECKS
    140,110.70                               140,110.70  
ADJUSTED BANK BALANCE
  $ 581,461.34     $ 4,612.81             $ 30,724.32     $ 616,798.47  
BEGINNING CASH - PER BOOKS
    581,461.34       4,911.48               30,724.32       617,097.14  
RECEIPTS*
    5,697,205.16                       152,180.82       5,849,385.98  
TRANSFERS BETWEEN ACCOUNTS
                                       
WITHDRAWAL OR CONTRIBUTION BY INDIVIDUAL DEBTOR MFR-2
                                       
CHECKS/OTHER DISBURSEMENTS*
    5,479,555.47       298.67               635.00       5,480,489.14  
ENDING CASH - PER BOOKS
  $ 799,111.03     $ 4,612.81             $ 182,270.14     $ 985,993.98  
 
MOR-8
 
*Numbers should balance (match) TOTAL RECEIPTS and
  Revised 07/01/98
   
 TOTAL DISBURSEMENTS lines on MOR-7
     
             
   
** Employee Funded Health Savings Account
     
   
***Petty Cash, Credit Card Holding Accounts, Investment Account Silicon Valley Bank Securities, Fortis Bank VAT Refund Account, SVB Creditors Committee Deposit, and Foreign Bank Monthly Foreign Exchange
 
 
 

 
 
    CASE NAME: In re Valence Technology, Inc.          
    CASE NUMBER:
12-11580
         
 
PAYMENTS TO INSIDERS AND PROFESSIONALS
 
Of the total disbursements shown for the month, list the amount paid to insiders (as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the professionals.
Also, for insiders, identify the type of compensation paid (e.g., salary, commission, bonus, etc.)  (Attach additional pages as necessary).
 
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
 
INSIDERS: NAME/COMP TYPE
 
07/13/2012 -
07/31/2012
   
08/01/2012 -
8/31/2012
   
09/01/2012 -
09/30/2012
   
10/1/2012 -
10/31/2012
   
11/01/2012 -
11/30/2012
   
12/01/2012 -
12/31/2012
 
                                     
1. Adleman, Randall - Wages
    10,666.68       16,666.68       16,666.68       16,666.68                
2. Gottschalk, Donald - Wages
    8,266.67       12,916.67       12,916.67       12,916.67                
3. Kanode, Robert - Wages
    13,333.33       20,833.33       20,833.33       20,833.33                  
4. Lim, Khoon Cheng - Wages
    10,666.68       16,666.68       16,666.68       16,666.68                  
5. Williams, Roger A. - Wages
    10,666.68       16,666.68       16,666.68       16,666.68                  
6. Adleman, Randall - Contracted Bonus
            8,122.10                                  
7. Adleman, Randall - Expense Reimbursement
            2,199.25       387.41       374.22                  
8. Gottschalk, Donald - Expense Reimbursement
            1,670.83       207.22       401.97                  
9. Kanode, Robert - Expense Reimbursement
            68.00       81.16                          
10. Williams, Roger A. - Expense Reimbursement
            1,415.36               433.72                  
TOTAL INSIDERS (MOR-1)
  $ 53,600.03     $ 97,225.58     $ 84,425.83     $ 84,959.95                  
 
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
 
PROFESSIONALS
 
07/13/2012 -
07/31/2012
   
08/01/2012 -
8/31/2012
   
09/01/2012 -
09/30/2012
   
10/1/2012 -
10/31/2012
   
11/01/2012 -
11/30/2012
   
12/01/2012 -
12/31/2012
 
                                     
1. Bridgepoint Consulting LLC
          40,000.00       37,873.58                    
2. PMB Helin Donovan, LLP
    45,000.00                                    
3. Lung Tin Int'l Patent & Trademark
                    5,098.30       9,364.53                
4. McFadden, Fincham
            795.00               4,574.70                  
5. Streusand, Landon & Ozburn LLP
                    184,590.86                          
6. Virtual CFO
                    16,432.93                          
7. VMW Accountants
                    2,433.72       940.36                  
8. KIM & CHANG
                            1,587.24                  
9. KRAUS & WEISERT
                            10,232.85                  
10. MIURA & ASSOCIATES
                            5,691.74                  
11. WELLS, ST. JOHN PS
                            1,225.00                  
12. Wilson Sonsini Goodrich & Rosati
                            25,000.00                  
TOTAL PROFESSIONALS (MOR-1)
  $ 45,000.00     $ 40,795.00     $ 246,429.39     $ 58,616.42                  
               
 
MOR-9
        Revised 07/01/98
 
 
 

 
 
   EXHIBIT A - Other Accrued Expenses as of October 31, 2012
CREDITOR’S NAME, MAILING ADDRESS INCLUDING ZIP CODE AND AN
ACCOUNT NUMBER
 
DESCRIPTION OF LIABILITY
Post Petition Liability
 
 
AT&T
PO BOX 6463
CAROL STREAM , IL 60197
Account # 4776758
 
Telecommunication
                             2,351.54
 
GemCap Lending I, LLC
24955 Pacific Coast Highway 3 A202
Malibu, CA 90265
Account #  NA
DIP Financing - Accrued fees
 
4,594.93
 
JOHN R. AMES, CTA
DALLAS COUNTY TAX OFFICE
P.O. BOX 139066
DALLAS, TX 75313
Account # 99100503135000000
Property tax
                             2,416.76
 
MARY MCGUFFEY
CITY OF COPPELL
P.O. BOX 9478
COPPELL, TX 75019
Account #99100503135000000
Property tax
                                642.84
 
METAL CONVERSION TECH. LLC
1 E.PORTER STREET
CARTERSVILLE, GA 30120
Account # NA
 
Disposal of hazardous material
12,300.00
 
MICHELE W. SHAFE
12500 S. GRAND CENTRAL PARKWAY, 2ND FLOOR
 LAS VEGAS, NV 89155
 Account # 03177499
Property tax
                             4,383.26
 
Office of the US Trustee
903 San Jacinto Blvd #230
Austin , TX 78701
Case # 12-11580
Bankruptcy administration
                             4,333.33
 
ROUND ROCK TAX OFFICE TAX ASSESSOR COLLECTOR
1311 ROUND ROCK AVENUE
ROUND ROCK, TX 78681
Account # P1947040393823
 
Property tax
                           10,532.30
 
SILICON VALLEY BANK
 P.O. BOX 7078
CROSSLANES, WV 25356
Account # 5478 5400 1011 2842
Corporate credit card
                           14,615.77
 
STREUSAND, LANDON & OZBURN LLP
811 BARTON SPRINGS RD SUITE 811
AUSTIN, TX 78704
Account # 01191-0001
Legal
                         157,119.00
 
TAMCO CAPITAL CORPORATION
P.O. BOX 956591
SAINT LOUIS, MO 63195
Account # 1114914
Office phone system rental
                             2,292.86
 
Unisiti
21/F, POS PLAZA
1600 CENTURY AVE
PU DONG SHANGHAI
Account # PXMB047
Telecommunication- China
                           13,902.09
 
WILLIAMSON COUNTY TAX OFFICE
904 SOUTH MAIN STREET
GEORGETOWN, TX 78626
Account # P468793
Property tax
                             9,148.97
 
 
Total
                         238,633.66
 
 
 
 

 
 
   EXHIBIT A - Received but not Invoiced as of October 31, 2012
CREDITOR’S NAME, MAILING ADDRESS INCLUDING ZIP CODE AND
ACCOUNT NUMBER
DESCRIPTION OF LIABILITY
Post-Petition
Pre-Petition
BROOKSIDE TECHNOLOGY PARTNERS
15500 ROOSEVELT BLVD , SUITE 101
CLEARWATER, FL 33760
Account # NA
 Telecommunication
4,871.25
 
OFFICE DEPOT
P.O. BOX 70001
LOS ANGELES, CA 90074
Account # 89434936
Office supplies
313.06
 
MOUSER ELECTRONICS
P.O. BOX 99319
FORT WORTH, TX 76199
Account # 1709746
Conn, DB9 Female
93.00
 
VWR INTERNATIONAL, INC.
P. O. BOX 640169
PITTSBURGH, PA 15264-0169
Account # 80005343
Lab supplies
49.21
 
 
Total
5,326.52
 
       
General Ledger Accruals for Estimated Expenses as of October 31, 2012
 
Ledger account
Account name
Post-Petition
Pre-Petition
12012
Current portion - Deferred rent
1,884.00
40,056.00
12101
Garnishments payable
0.00
0.00
12102
Payroll clearing
91,166.39
(58,794.88)
12103
Accrued vacation
(15,052.79)
261,094.31
12105
Medical insurance payable
1,274.38
-535.96
12107
401(k) payable
5,611.24
2,641.10
12108
Bonus payable
21,631.66
141,960.03
12109
SAR liability
0.00
0.00
12210
Warranty reserve
(94,532.52)
1,124,919.97
12211
Extended warranty reserve
(3,288.60)
6,577.40
12221
Dividend payable
5,661.37
1,162,939.77
12303
Customer deposits
(3,935.00)
17,945.01
12310
Reserve for customer rebates
(53,925.00)
203,275.00
12706
Deferred rent
(13,980.00)
20,953.00
 
Total
(57,484.87)
2,923,030.75
       
 
Grand Total
                         186,475.31
 
 
 
 

 
 
MOR-7
 
   EXHIBIT B - Other Cash Receipts  October 2012
   
Date
Subsidiary/Company
Description
Amount
Transfer Between Accounts:
   
10/1/2012
Fortis Bank, Belgium
Transfer of VAT Receivable into Fortis Bank Account, Belgium
51,674.34
Interest Earned:
     
10/1/2012
Silicon Valley Bank
Interest earned on CD deposit account held at Silicon Valley Bank
10.27
10/5/2012
Silicon Valley Bank
Interest paid on Silicon Valley Bank Investment account
0.04
Other Receipts:
     
10/17/2012
Silicon Valley Bank
Creditor's Committee Deposit
100,000.00
Foreign Exchange Adjustment
   
10/31/2012
Fortis Bank, Belgium
End of Month Foreign Exchange Adjustment
506.44
     
$152,191.09
 
 
 

 
 
MOR-7
 
   EXHIBIT C - Other Cash Disbursements  October 2012
   
Payments to Subsidiaries or Payments on Behalf of Subsidiaries
 
Date
Subsidiary/Company
Description
Amount
10/9/2012
VALENCE (SIP) - VET
Wire Transfer sent to Valence VET for purchase of finished goods
500,000.00
10/24/2012
VALENCE (SIP) - VET
Wire Transfer sent to Valence VET for purchase of finished goods
1,000,000.00
10/19/2012
Pay Check Limited
Transfer to Pay Check LTD, foreign payroll processing company for payment of foreign subsidiary (Valence Technology Cayman Islands, Inc) employee wages & taxes
43,627.73
10/9/2012
VALENCE CAYMAN INC.
Transfer to UK Subsidiary for Operational Expenses
72,270.00
10/5/2012
VALENCE (SIP) - VET
Payment of Telephone Expense Valence VET
6,115.88
     
$1,622,013.61
Customer Payments Remitted to GemCap for Payment on Loan
 
Date
Subsidiary/Company
Description
Amount
10/31/2012
GemCap Lending I, LLC
Accounts Receivable payments transferred to GemCap
                    806,556.56
     
 $                 806,556.56
Cure Payments Remitted
   
Date
Subsidiary/Company
Description
Amount
10/5/2012
KUEHNE & NAGEL LOGISTICS NV
3rd Weekly Cure Payment
10,000.00
10/12/2012
KUEHNE & NAGEL LOGISTICS NV
4th Weekly Cure Payment
10,000.00
10/22/2012
KUEHNE & NAGEL LOGISTICS NV
5th Weekly Cure Payment
10,000.00
10/25/2012
KUEHNE & NAGEL LOGISTICS NV
6th Weekly Cure Payment
10,000.00
10/31/2012
KUEHNE & NAGEL LOGISTICS NV
7th Weekly Cure Payment
10,000.00
10/5/2012
KUEHNE & NAGEL, INC.
3rd Weekly Cure Payment
10,000.00
10/12/2012
KUEHNE & NAGEL, INC.
4th Weekly Cure Payment
10,000.00
10/22/2012
KUEHNE & NAGEL, INC.
5th Weekly Cure Payment
10,000.00
10/25/2012
KUEHNE & NAGEL, INC.
6th Weekly Cure Payment
10,000.00
10/31/2012
KUEHNE & NAGEL, INC.
7th Weekly Cure Payment
10,000.00
     
 $100,000.00
       
 
Total Other Payments
 
$2,528,570.17
 
 
 

 
 
MOR-7
 
EXHIBIT D - Other Reorganization Expenses October 2012
 
Date
Vendor
Description
Amount
10/18/2012
GemCap Lending I, LLC
Interest and Fees
4,525.53
10/18/2012
GemCap Lending I, LLC
Reimbursement to GemCap for legal fees
7,090.35
10/17/2002
SVB Deposit
Accrued Fees for Creditor Committee Counsel
100,000.00
     
$ 111,615.88