-----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, JmHcDmsVDwwIt6ZO3nu06MeHvRpTcfOp2TJWIKzN/PCEQUE3lXi0ByEA4ZCEq7ie Qfu3hpkIMaDYrohOWe/yag== 0001005150-02-001091.txt : 20020920 0001005150-02-001091.hdr.sgml : 20020920 20020920101038 ACCESSION NUMBER: 0001005150-02-001091 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20020430 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020920 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NX NETWORKS INC CENTRAL INDEX KEY: 0000889237 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER COMMUNICATIONS EQUIPMENT [3576] IRS NUMBER: 541345159 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-20512 FILM NUMBER: 02768280 BUSINESS ADDRESS: STREET 1: 13595 DULLES TECHNOLOGY DR CITY: HERNDON STATE: VA ZIP: 20171 BUSINESS PHONE: 7037426000 MAIL ADDRESS: STREET 1: 13595 DULLES TECHNOLOGY DRIVE CITY: HERNDON STATE: VA ZIP: 20171 FORMER COMPANY: FORMER CONFORMED NAME: NETRIX CORP DATE OF NAME CHANGE: 19930328 8-K 1 form8k.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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): APRIL 30, 2002 ------------------------------ NX NETWORKS, INC. - -------------------------------------------------------------------------------- (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE 000-20512 54-1345159 - -------------------------------------------------------------------------------- (STATE OR OTHER (COMMISSION FILE NO.) (IRS EMPLOYER JURISDICTION OF IDENTIFICATION NO.) CORPORATION) 3863 CENTERVIEW DRIVE, CHANTILLY, VIRGINIA 20151 - -------------------------------------------------------------------------------- (ADDRESS OF PRINCIPAL EXECUTIVE OFFICERS) (ZIP CODE) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (703) 742-6000 ----------------------------- 13595 DULLES TECHNOLOGY DRIVE, HERNDON, VIRGINIA 22209 - -------------------------------------------------------------------------------- (FORMER ADDRESS) ITEM 5. OTHER EVENTS. On May 15, 2002, NX Networks, Inc. (the "Company") , filed with the United States Bankruptcy for the Eastern District of Virginia Alexandria Division its monthly operating report for the month ended April 30, 2002, which is attached hereto as Exhibit 99.1. On June 16, 2002, NX Networks, Inc. (the "Company") , filed with the United States Bankruptcy for the Eastern District of Virginia Alexandria Division its monthly operating report for the month ended May 31, 2002, which is attached hereto as Exhibit 99.2. On July 23, 2002, NX Networks, Inc. (the "Company") , filed with the United States Bankruptcy for the Eastern District of Virginia Alexandria Division its monthly operating report for the month ended June 30, 2002, which is attached hereto as Exhibit 99.3. On August 20, 2002, NX Networks, Inc. (the "Company") , filed with the United States Bankruptcy for the Eastern District of Virginia Alexandria Division its monthly operating report for the month ended July 31, 2002, which is attached hereto as Exhibit 99.4. ITEM 7. EXHIBITS 99.1 Monthly Operating Report for the month ended April 30, 2002 99.2 Monthly Operating Report for the month ended May 31, 2002 99.3 Monthly Operating Report for the month ended June 30, 2002 99.4 Monthly Operating Report for the month ended July 31, 2002 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. NX NETWORKS, INC. Date: 9/17/2002 By: /s/ Richard Yalen ---------------------- -------------------------------- Richard Yalen Chief Executive Officer EX-99.1 3 ex99-1.txt EXHIBIT 99.1 EXHIBIT 99.1 UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA ALEXANDRIA DIVISION In Re: NxNetworks, Inc. Chapter 11 Debtor(s) Case Number: 01-14233 ----------- MONTHLY OPERATING REPORT CALENDAR MONTH APRIL 1, 2002 TO APRIL 30, 2002 ------------------------------- FINANCIAL BACKGROUND INFORMATION 1. ACCOUNTING BASIS: Cash Accrual X ----- ------ 2. PREPARER: State the name, address, telephone number and position of the person(s) who actually compiled the information contained in this report. Location: NxNetworks, Inc. 13595 Dulles Technology Drive, Herndon, VA 20171; Greg Washenko (CFO) 703-793-2059 and Jennifer Bell (Controller) 703-793-2076 3. NUMBER OF EMPLOYEES paid during this period: 2 --- 4. Have there been any CHANGES IN THE NATURE OF YOUR BUSINESS since the last reporting period? Yes / / No /X/ . If yes, explain below: 5. Are all BUSINESS LICENSES current? Yes /X/ No / / Not Applicable / / 6. PRE-PETITION ACCOUNTS RECEIVABLE: Beginning Balance $ 0 Collected this Period $ Write-offs against allowance Sale of asset $ 0 Ending Balance $ 0 7. POST-PETITION ACCOUNTS RECEIVABLE: 0-30 Days: $0 31-60 Days: $0 Over 61-90: $0 Days over 90: $0 -- -- -- -- If there are any post-petition Accounts Receivable over 60 days, provide schedule AR giving a listing of such accounts and explain the delinquencies. 8. POST-PETITION ACCOUNTS PAYABLE: 0-30 Days: $11,074 31-60 Days: $17,060 Over 60 Days: $250 ------- ------- ---- If there are any post-petition Accounts Payable over 30 days, provide Schedule AP giving a listing of such accounts and explain the delinquencies. 9. TAXES. Are all taxes being paid to the proper taxing authorities when due? Yes /X/ No / / Payroll tax is current but sales, property and business taxes are overdue. On the attached IRS Form 6123 report all tax deposits made with any financial institution for federal employment taxes. Be sure the form is complete and signed by an authorized employee of the receiving institution or taxing authority. Attach to this report a completed Form 6123 for each deposit made during the reporting period. Also attach copies of the monthly sales tax report, payroll tax report and unemployment tax report with evidence of payment of both federal and state taxes. 10. ESCROW ACCOUNTS. Are you utilizing your tax account only for deposits and payment of payroll and sales taxes? Yes /X/ No / /. If no, explain: ______. 11. Are all BOOKS AND RECORDS of the debtor(s) being maintained monthly and are all current? Yes /X/ No / / Explain: 12. INSURANCE EXPIRATION STATEMENT. Policy expiration dates are: Auto & Truck 4/01/02 Liability 4/01/02 ---------------- ----------------------- Fire Workers Comp. 4/01/02 -------------- -------------------- 13. ACTIONS OF DEBTOR. During the last month, did the debtor: (A) Fail to defend or not oppose any action seeking to dispossess the debtor from control or custody of any asset of the estate? Yes / / No / / Explain:______________________________________________________. (B) Maintain such stock, inventory, raw materials, insurance, employees and other resources as are necessary to preserve and maintain the going- concern value of the assets of the debtor? Yes /X/ No / / Explain:______________________________________________________________. 14. TRANSFER OR SALE OF PROPERTY. Did the debtor or any person with control over any of the debtor's assets transfer, convey or abandon any of the debtor's assets to another party during the period of this report other than as set forth herein (including sales by creditors)? Yes /X/ No / / Explain: On March 6, 2002, the US Bankruptcy Court for the Eastern District of Virginia issued an order in which it approved the sale of substantially all of Nx Networks' assets to NSGData.com pursuant to section 363 of the US Bankruptcy code. 15. PAYMENTS TO SECURED CREDITORS during reporting period: (Attach additional sheets, if necessary.)
- ------------------------------------------------------------------------------------------------------------------------------ Creditor Freq. Of Payments per Amount Next Post Petition Contract (mo, qtr) of Each Payment Pmts. not made Payment Due No. Amt. - ------------------------------------------------------------------------------------------------------------------------------ None - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------
16. PAYMENTS TO PROFESSIONALS (Attorneys, Accountants, Real Estate Agents, Auctioneers, Appraisers, etc., during reporting period: (Attach additional sheets, if necessary.)
-------------------------------------------------------------------------------------------- Professional Service Amount -------------------------------------------------------------------------------------------- Richard Yalen CEO $1,354 -------------------------------------------------------------------------------------------- Real Estate Investment Managers Rent settlement on $40,000 Westborough, Mass. Office case -------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------
17. QUARTERLY U.S. TRUSTEE FEES paid during reporting period: $ 1,250 ------- 18. VERIFICATION: I declare under penalty of perjury that the information contained in this monthly operating report (including attached schedules) is true and correct to the best of my knowledge, information and belief. Dated: 5/14/02 DEBTOR-IN-POSSESSION Name/Title: Rich Yalen By: ------------------------------------ ----------------------- Address: 13595 Dulles Technology Drive -------------------------------------- Herndon, VA 20171 Phone: -------------------------------------- ----------------------- UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA ALEXANDRIA DIVISION In Re: Chapter 11 Debtor(s) Case Number: _______________ MONTHLY OPERATING REPORT INCOME STATEMENT (BUSINESS DEBTOR, ACCRUAL BASIS) CALENDAR MONTH APRIL 1 TO APRIL 30, 2002 (All figures refer to post-petition transactions)
THIS MONTH YEAR TO DATE (A) TOTAL SALES/INCOME (A) ___________ ___________ SEE ATTACHED COST OF SALES Beginning Inventory ___________ ___________ Purchases of Inventory ___________ ___________ Less Ending Inventory (___________) (___________) Direct Labor (Gross Salaries) ___________ ___________ Purchased Services ___________ ___________ (B) TOTAL COST OF SALES (B) ___________ ___________ (C) GROSS PROFIT (C = A - B) ___________ ___________ OPERATING EXPENSES Officer Salaries (Gross) ___________ ___________ Other Employee Salaries (Gross) ___________ ___________ Taxes (Payroll: Employer's Share) ___________ ___________ Employee Benefits (Insurance, Pension Plan, etc. Employer's Share) Advertising ___________ ___________ Bad Debts ___________ ___________ Depreciation and Amortization ___________ ___________ Entertainment ___________ ___________ Insurance (Real Estate) ___________ ___________ Insurance (Other) ___________ ___________ Interest (Mortgage, Loans, etc.) ___________ ___________ Leases (other than Rent) ___________ ___________ Outside Services & Contractors ___________ ___________ Professional Fees (Attorney, Accountant) ___________ ___________ Rent and leases ___________ ___________ Repairs & Maintenance ___________ ___________ Supplies ___________ ___________ Taxes (Real Property) ___________ ___________ Taxes (Other) ___________ ___________ Telephone ___________ ___________ Travel ___________ ___________ Utilities ___________ ___________ U.S. Trustee Quarterly Fee ___________ ___________
CASE NUMBER: _____________ PERIOD ENDED: ___________ INCOME STATEMENT PAGE 2 THIS MONTH YEAR TO DATE OTHER OPERATING EXPENSES _________________________________________ ____________ ___________ _________________________________________ ____________ ___________ _________________________________________ ____________ ___________ _________________________________________ ____________ ___________ (D)TOTAL OPERATING EXPENSES (D) ____________ ___________ (E) PROFIT/LOSS FROM OPERATIONS (E=C-D) ____________ ___________ OTHER INCOME (EXPENSES) ____________ ___________ Interest Income ____________ ___________ Interest Exp (____________) (___________) _________________________________________ ____________ ___________ _________________________________________ ____________ ___________ _________________________________________ ____________ ___________ _________________________________________ ____________ ___________ EXTRAORDINARY ITEMS- In (out) _________________________________________ ____________ ___________ _________________________________________ ____________ ___________ _________________________________________ ____________ ___________ _________________________________________ ____________ ___________ (F) TOTAL OTHER INCOME/EXPENSE & Extraordinary Items (F) ____________ ___________ (G) INCOME BEFORE TAXES (G = E+F) ____________ ___________ (H) INCOME TAX EXPENSE (H) ____________ ___________ (I) NET INCOME (LOSS)(I = G - H) ____________ ___________
NOTE: Accrual basis reporters must attach Cash Reconciliation Reports or a standard Statement of Sources and Uses of Cash to this Report. In Re: ______________________ Case Number___________ CASH RECONCILIATION REPORT (BUSINESS DEBTOR, ACCRUAL BASIS) CALENDAR MONTH ENDING APRIL 30, 2002 (All figures refer to post-petition transactions) OPERATING TOTALS ACCOUNT (A) BEGINNING CASH BALANCE (A) __________ SEE ATTACHED (B) NET INCOME, (LINE (I), PAGE 23) (B) __________ ___________ Add Expenses Not Requiring Cash: Depreciation __________ ____________________________ __________ ____________________________ __________ (C) SUB-TOTAL (C) __________ ___________ (D) CASH FROM OPERATIONS (D = B + C) __________ ___________ OTHER SOURCES (USES) OF CASH: SOURCES (USES) - ------- ------ Decrease (Incr) - Accounts Receivable __________ Decrease (Incr) - Inventory __________ Decrease (Incr) - Equipment __________ Decrease (Incr) - Furniture & Fixtures __________ Decrease (Incr) - _________________ __________ Decrease (Incr) - _________________ __________ Increase (Decr) - Accounts Payable __________ Increase (Decr) - Accrued Interest __________ Increase (Decr) - Accrued P/R Taxes __________ Increase (Decr) - Accrued Prof. Fees __________ Increase (Decr) - Accrued Rent __________ Increase (Decr) - Accrued Salaries __________ Increase (Decr) - Accrued Sales Taxes __________ Increase (Decr) - Notes Payable -Banks __________ Increase (Decr) - Notes Payable -Other __________ Increase (Decr) - ____________________ __________ Increase (Decr) - ____________________ __________ (Less) Unrecorded bank service charges __________ (E) TOTAL OTHER SOURCES (USES) OF CASH (E) __________ ___________ (F) ENDING CASH BALANCE (F = A+D+E) __________ ___________ (G) BALANCE PER BANK STATEMENT* (G) ___________ (H) LESS OUTSTANDING CHECKS (H) __________ (I) ADD DEPOSITS IN TRANSIT (I) __________ (J) RECONCILED BANK BALANCE {J=(G-H)+I} ___________ Ending Cash Balance(F) and Reconciled Bank Balance(J) should equal. - ------------------------------------------------------------------- In Re: ______________________ Case Number___________ CASH RECONCILIATION REPORT PAYROLL AND TAX ACCOUNTS (BUSINESS DEBTOR, ACCRUAL BASIS) CALENDAR MONTH ENDING _____________ (All figures refer to post-petition transactions)
PAYROLL TAX ACCOUNT ACCOUNT (A) BEGINNING CASH BALANCE (A) __________ __________ CASH RECEIPTS: Transfers from Operating Account __________ ___________ Transfers from Payroll Account __________ Other - ________________________ __________ ___________ ________________________________ __________ ___________ (B) TOTAL CASH RECEIPTS (B) __________ ___________ (C) CASH AVAILABLE (C = A + B) __________ ___________ CASH DISBURSEMENTS: Gross Payroll for this period $ ___________ Employee Benefits paid __________ Net Payroll Paid __________ Transfers to Tax Account __________ Taxes deposited or paid during period Employees' share of FICA Tax __________ __________ Employer's share of FICA Tax __________ __________ Employees' Federal Income Tax __________ __________ Employees' State Income Tax __________ __________ Unemployment Tax __________ __________ Unrecorded Bank Service Charges __________ __________ Other: _________________ __________ __________ (D) TOTAL DISBURSEMENTS (D) __________ __________ (E) ENDING CASH BALANCE (E = C-D) __________ __________ (F) BALANCE PER BANK STATEMENT(S)* (F) __________ __________ (G) LESS OUTSTANDING CHECKS (G) __________ __________ (H) ADD DEPOSITS IN TRANSIT (H) __________ __________ (I) RECONCILED BANK BALANCE {I =(F-G)+H} __________ __________
Ending Cash Balance(E) and Reconciled Bank Balance(I) should equal. - ------------------------------------------------------------------- In Re: Case Number _____________ BALANCE SHEET AS OF __________________ CURRENT ASSETS Cash $____________ SEE ATTACHED Pre-Petition Accounts Receivable ____________ Post-Petition Accounts Receivable ____________ Receivable from Officers, Employees, Affiliates ____________ Notes Receivable ____________ Inventory ____________ Other Current Assets: _______________________________________ ____________ _______________________________________ ____________ TOTAL CURRENT ASSETS ____________ FIXED ASSETS Land ____________ Buildings ____________ Equipment, Furniture & Fixtures ____________ less Accumulated Depreciation (____________) TOTAL FIXED ASSETS ____________ OTHER ASSETS ______________________________________ ____________ ______________________________________ ____________ ______________________________________ ____________ TOTAL OTHER ASSETS ____________ TOTAL ASSETS ____________ POST-PETITION LIABILITIES Accounts Payable ____________ Notes Payable ____________ Rents and Leases Payable ____________ Taxes Payable ____________ Accrued Interest ____________ ______________________________________ ____________ TOTAL-POST PETITION LIABILITIES ____________ PRE-PETITION LIABILITIES Priority Claims ____________ Secured Debts ____________ Unsecured Debt ____________ TOTAL PRE-PETITION LIABILITIES ____________ OWNERS EQUITY (DEFICIT) Capital Stock or Owners Investment ____________ Paid In Capital Surplus ____________ Retained Earnings (Deficit) Pre -Petition ____________ Post-Petition ____________ TOTAL OWNERS EQUITY ____________ TOTAL LIABILITIES AND OWNER'S EQUITY ____________
UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA ALEXANDRIA DIVISION In Re: ) ) Chapter 11 ) Case Number: 01-14223 ) ------------- Debtor(s) ) - ------------------------------------ CASH DISBURSEMENTS SUMMARY REPORT Calendar Month Ending April 30, 2002 Total Disbursements from Operating Account (See Note 1) $120,519.91 ----------- Total Disbursements from Payroll Account (See Note 2) $ 20,587.53 ----------- *One tax payment made from this account Total Disbursements from Tax Escrow Account (See Note 3) $ 10,311.36 ----------- Total Disbursements from any other Account (See Note 4) 0 ----------- Grand Total Disbursements from all Accounts $151,418.80 ----------- NOTE 1 --Include in this amount all checks written, wire transfers made from, or any other withdrawal from the GENERAL OPERATING ACCOUNT. Exclude only transfers to the debtor-in-possession payroll account, the debtor in possession tax escrow account or other debtor in possession account where the disbursements will be listed on this report. NOTE 2 --Include in this amount all checks written, wire transfers made from, or any other withdrawal from the PAYROLL ACCOUNT. Exclude only transfers to the debtor-in-possession operating account, the debtor in possession tax escrow account or other debtor-in-possession account where the disbursements will be listed on this report. NOTE 3 --Include in this amount all checks written, wire transfers made from, or any other withdrawal from the TAX ESCROW ACCOUNT. Exclude only transfers to the debtor-in-possession operating account, the debtor in possession payroll account or other debtor in possession account where the disbursements will be listed on this report. NOTE 4 -- Include in this amount any other disbursements made by the debtor including (but not limited to) cash PAID FROM A PETTY CASH FUND OR CASH REGISTER, amounts paid from any other debtor in possession account, and amounts PAID FROM THE ACCOUNTS OF OTHERS ON THE DEBTORS BEHALF (for example, disbursements made from a law firm's escrow account as a result of a sale of property.) ATTACH A COPY OF THE MOST RECENT MONTHLY BANK STATEMENT FOR EACH DEBTOR-IN-POSSESSION ACCOUNT. (THE PAGE OF THE STATEMENT SHOWING BANK, ACCOUNT NUMBER AND BEGINNING AND ENDING BALANCE IS SUFFICIENT.) In Re: _________________________________ Case Number _______________ ACCOUNTS RECEIVABLE AS OF APRIL 30, 2002 TOTAL DATE PAST DUE PAST DUE CREDITOR DUE INCURRED (31-60 DAYS) (OVER 60 DAYS) NONE TOTALS THIS _________ _________ _________ PAGE TOTALS ALL _________ _________ _________ PAGES In Re: ___________________________ Case Number ____________ ACCOUNTS PAYABLE AS OF __________________ TOTAL DATE PAST DUE PAST DUE CREDITOR DUE INCURRED (31-60 DAYS) (OVER 60 DAYS) SEE ATTACHED TOTALS THIS _________ _________ _________ PAGE TOTALS ALL _________ _________ _________ PAGES UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA ALEXANDRIA DIVISION In Re: Chapter 11 Case Number _________ Debtor(s) MONTHLY OPERATING REPORT INCOME STATEMENT (BUSINESS DEBTOR, CASH BASIS) CALENDAR MONTH __________ TO __________ (All figures refer to post-petition transactions)
THIS MONTH YEAR TO DATE (A) TOTAL SALES/INCOME (A) ___________ ___________ COST OF SALES Purchases of Inventory ___________ ___________ Purchased Services ___________ ___________ ________________________ ___________ ___________ ________________________ ___________ ___________ (B) TOTAL COST OF SALES (B) ___________ ___________ (C) GROSS PROFIT (C = A - B) ___________ ___________ OPERATING EXPENSES Officer Salaries (Gross) ___________ ___________ Other Employee Salaries (Gross) ___________ ___________ Taxes (Payroll: Employer's Share) ___________ ___________ Employee Benefits (Insurance, Pension Plan, etc. Employer's Share) ___________ ___________ Advertising ___________ ___________ Automobile Expenses ___________ ___________ Entertainment ___________ ___________ Insurance (Real Estate) ___________ ___________ Insurance (Other) ___________ ___________ Interest ___________ ___________ Leases (other than Rent) ___________ ___________ Outside Services & Contractors ___________ ___________ Professional Fees (Attorney, Accountant) ___________ ___________ Rent ___________ ___________ Repairs & Maintenance ___________ ___________ Supplies ___________ ___________ Taxes (Real Property) ___________ ___________ Taxes (Other) ___________ ___________ Telephone ___________ ___________ Travel ___________ ___________ Utilities ___________ ___________ U.S. Trustee Quarterly Fee ___________ ___________
THIS MONTH YEAR TO DATE OTHER OPERATING EXPENSES _________________________________ ___________ ___________ _________________________________ ___________ ___________ _________________________________ ___________ ___________ _________________________________ ___________ ___________ (D) TOTAL OPERATING EXPENSES (D) ___________ ___________ (E) PROFIT/LOSS FROM OPERATIONS (E=C-D) ___________ ___________ OTHER INCOME (EXPENSES) Interest _________________________________ ___________ ___________ _________________________________ ___________ ___________ _________________________________ ___________ ___________ _________________________________ ___________ ___________ (F) TOTAL OTHER INCOME/EXPENSE (F) ___________ ___________ (G) INCOME BEFORE TAXES (G=E+F) ___________ ___________ (H) INCOME TAX EXPENSE (H) ___________ ___________ (I) NET INCOME (LOSS) (I = G-H) ___________ ___________ EXTRAORDINARY ITEMS Loans Received ___________ ___________ Note Principal (Paid) ___________ ___________ Capital (Purchases) ___________ ___________ (Less) Unrecorded Bank Svc. Chg. ___________ ___________ _________________________________ ___________ ___________ _________________________________ ___________ ___________ _________________________________ ___________ ___________ _________________________________ ___________ ___________ (J) TOTAL EXTRAORDINARY ITEMS (J) ___________ ___________ (K) CASH FORWARD FROM PRIOR PERIOD (K) ___________ ___________ (L) ENDING CASH BALANCE (L = I+J+K) ___________ ___________ (M) BALANCE PER BANK STATEMENT(S)* (M) ___________ ___________ (N) LESS OUTSTANDING CHECKS (N) ___________ ___________ (O) ADD DEPOSITS IN TRANSIT (O) ___________ ___________ (P) RECONCILED BANK BALANCE {P=(M-N)+O} ___________ ___________
Ending Cash Balance(L) and Reconciled Bank Balance(P) should equal. - ------------------------------------------------------------------- UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA ALEXANDRIA DIVISION In Re: ) Chapter 11 ) ) Case Number __________ Debtor(s) ) - ---------------------------------- MONTHLY OPERATING REPORT INCOME STATEMENT (NON-BUSINESS DEBTOR, CASH BASIS) CALENDAR MONTH __________ TO __________ (All figures refer to post-petition transactions) THIS MONTH INCOME Salary, Wages, etc. ___________ Interest, dividends, investments ___________ Business income(Rents, Royalties, Sale of Assets, etc.) ___________ Other: ________________________ ___________ (A) TOTAL INCOME (A) ___________ EXPENSES Automobile Car payment ___________ Insurance ___________ Other ___________ Housing Mortgage payment ___________ Insurance ___________ Real estate tax ___________ Rent ___________ Utilities ___________ Insurance (Other) ___________ Interest ___________ Medical ___________ Personal Living Expenses ___________ Professional Fees (Attorney, Acct.,etc) ___________ Taxes (Other) ___________ ________________________ ___________ ________________________ ___________ (B) TOTAL EXPENSES (B) ___________ (C) CASH FLOW (C = A-B) ___________ (D) CASH FORWARD FROM PRIOR PERIOD (D) ___________ (E) ENDING CASH BALANCE (E = D+C) ___________ (F) BALANCE PER BANK STATEMENT(S)* (F) ___________ (G) LESS OUTSTANDING CHECKS (G) ___________ (H) ADD DEPOSITS IN TRANSIT (H) ___________ (I) RECONCILED BANK BALANCE {I=(F-G)+H} ___________ Ending Cash Balance(E) and Reconciled Bank Balance(I) should equal. - ------------------------------------------------------------------- NX NETWORKS, INC. CONDENSED CONSOLIDATED BALANCE SHEET - UNAUDITED AS OF APRIL 30, 2002 ASSETS ------ CURRENT ASSETS Cash and cash equivalents 1,130,829 Prepaids 259,361 Note Receivable 300,000 Other Receivable 349,014 ------------ Total Current Assets 2,039,204 OTHER ASSETS Deposits 355,520 ------------ TOTAL ASSETS 2,394,724 ============ LIABILITIES & STOCKHOLDER'S EQUITY ---------------------------------- POST-PETITION LIABILITIES: Accounts Payable 28,384 Accrued Accounts Payable 484,649 Accrued liability for sub liquidation 338,031 Deferred Revenue -- Taxes Payable 2,149 ------------ Total Post-Petition Liabilities 853,213 PRE-PETITION LIABILITIES: Priority Claims 528,076 Secured Claims 558,735 Unsecured Claims 13,088,400 General pre-petition accruals 4,467,850 Total Pre-Petition Liabilities 18,643,062 ------------ TOTAL LIABILITIES 19,496,274 ============ STOCKHOLDERS' EQUITY: Common Stock 2,430,230 Preferred Stock 7,025,008 APIC, net of filing fees 283,967,334 Deferred Compensation (2,347,751) Accumulated (deficit)/income - Pre-petition (291,148,351) Accumulated (deficit)/income-Post-petition PY (18,977,497) Accumulated (deficit)/income-Post-petition CY (3,240,361) Warrants 6,322,333 Notes Receivable from officer (1,000,000) Cummulative Translation Adj (132,495) Total Stockholders' equity (17,101,550) ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 2,394,724 ============ (0) NX NETWORKS, INC. MONTHLY OPERATING REPORT - UNAUDITED INCOME STATEMENT (BUSINESS DEBTOR, ACCRUAL BASIS) CALENDAR MONTH APRIL 1 TO APRIL 30, 2002
APRIL MARCH FEBRUARY JANUARY 2002 2002 2002 2002 YEAR TO DATE ---- ---- ---- ---- ------------ SALES: Product Sales -- 15,455 667,347 271,214 954,016 Service Sales -- 27,372 189,849 335,546 552,766 ----------------------------------------------------------------------- -- 42,827 857,196 606,760 1,506,783 ----------------------------------------------------------------------- COST OF SALES: Product Cost of Sales - materials -- 10,652 282,705 127,713 421,069 Product Cost of Sales - manufacturing overhead -- 5,364 31,046 69,947 106,357 Service Costs -- 46,987 92,630 95,581 235,197 ----------------------------------------------------------------------- -- 63,002 406,381 293,241 762,624 ----------------------------------------------------------------------- GROSS MARGIN -- (20,175) 450,815 313,519 744,159 ----------------------------------------------------------------------- 0.49 OPERATING EXPENSES: - ------------------- OFFICER SALARIES (GROSS) -- 74,707 33,892 33,892 142,492 OTHER EMPLOYEES SALARIES (GROSS) 28,338 30,122 74,655 123,589 256,704 TAXES (PAYROLL: EMPLOYER'S SHARE) 2,516 9,959 8,749 16,403 37,627 EMPLOYEE BENEFITS (insurance,pension etc) 7,500 7,500 15,000 TRAVEL & ENTERTAINMENT (73) 558 11,754 3,895 16,134 TELEPHONE (6,462) 136 3,861 6,330 3,865 UTILITIES (2,500) 5,884 3,200 6,584 OFFICE SUPPLIES 2,146 5,380 3,335 2,066 12,927 POSTAGE & DUPLICATION 32 1,354 3,087 169 4,641 OFFICE RENT 6,204 13,531 13,460 33,195 REPAIRS & MAINTENANCE 317 3,831 4,149 LEGAL 20,093 82,930 10,000 10,250 123,272 ACCOUNTING 1,322 -- 141 1,463 MARKETING EXPENSE 354 325 325 1,004 TRANSFER AGENT FEE 1,275 -- 1,272 1,283 3,830 INSURANCE 18,506 33,155 33,460 33,480 118,600 BAD DEBT EXPENSE -- -- (400,000) (400,000) SALES CONTRACTORS 1,387 4,913 4,913 11,213 CONSULTING 2,000 116,999 49,453 60,335 228,787 OTHER TAX 5,390 12 7,171 12,572 OTHER EXPENSES 1,816 737 4,667 1,059 8,279 ----------------------------------------------------------------------- Total operating expense $ 70,187 $ 368,191 $ 270,667 $ (66,706) $ 642,339 ======================================================================= OPERATING INCOME/(LOSS)/EBITDA (70,187) (388,367) 180,148 380,225 101,820 DEPRECIATION -- 1,629 51,526 54,725 107,881 GOODWILL AMORTIZATION -- -- 16,125 16,125 32,250 ESTIMATED LOSS ON FOREIGN SUBS LIQUIDATION -- -- (37,443) (37,443) ----------------------------------------------------------------------- -- 1,629 30,208 70,850 102,688 Other Income (Expenses) Interest Expense -- -- -- -- -- Interest Income -- 15 3 3 20 Other Income -- 44,388 11,838 3,562 59,789 ----------------------------------------------------------------------- Total income and other expense -- 44,403 11,841 3,565 59,809 ----------------------------------------------------------------------- NET INCOME/(LOSS) FROM OPERATIONS $ (70,187) $ (345,593) $ 161,780 $ 312,940 $ 58,941 ======================================================================= Loss on sale of assets -- (3,299,302) -- (3,299,302) ----------------------------------------------------------------------- NET INCOME/(LOSS) $ (70,187) $(3,644,894) $ 161,780 $ 312,940 $(3,240,361) =======================================================================
NX NETWORKS, INC. CASH FLOW STATEMENT (SOURCES (USES) OF CASH) - UNAUDITED PAYROLL AND TAX ACCOUNTS (BUSINESS DEBTOR, ACCRUAL BASIS) CALENDAR MONTH ENDING APRIL 30, 2002 All figures refer to post-petition transactions APRIL Net Income/(loss) (70,187) Add expenses not requiring Cash: Loss on sale of assets -- Depreciation -- Goodwill amortization ---------- -- Other Sources (Uses) Cash: Accounts receivable Inventories Other current assets 19,100 Deposits -- Note Receivable 300,000 Other Receivable 340,669 Goodwill Accounts payable Deferred revenue (71,387) Accrued liabilities (163,313) ---------- Total other souces (uses) of cash 425,069 Net decrease in cash and cash equivalents 354,883 Cash beginning 775,946 Cash ending 1,130,829 (0) NX NETWORKS, INC. AGED POST PETITION ACCOUNTS PAYABLE CALENDAR MONTH APRIL 1 TO APRIL 30, 2002
VENDORNAME CURRENT OVER30 TO60 OVER60 TOTAL ADP, INC -- -- -- 250.45 250.45 COUNTY OF FAIRFAX -- 1,997.75 -- -- 1,997.75 DELAWARE SECRETARY OF STATE 8,820.00 -- -- -- 8,820.00 EQUISERVE LP -- 1,274.86 -- -- 1,274.86 EWA TRAVEL, INC -- -- 1,519.50 -- 1,519.50 Lashership, Inc. -- 32.08 -- -- 32.08 SUNLIFE OF CANADA -- 58.76 -- -- 58.76 TRIGON -- 12,176.74 -- -- 12,176.74 VISION SERVICE PLAN 253.67 -- -- -- 253.67 RICHARD YALEN 2,000.00 -- -- -- 2,000.00 ------------------------------------------------------------------ TOTAL 11,073.67 15,540.19 1,519.50 250.45 28,383.81 ==================================================================
NX NETWORKS, INC. AGED POST PETITION ACCOUNTS RECEIVABLE CALENDAR MONTH APRIL 1 TO APRIL 30, 2002 CUSTOMER NAME 0-30 31-60 60-90 90+ TOTAL 0 0 0 0 0 ======================================================== EX-99.2 4 ex99-2.txt EXHIBIT 99.2 EXHIBIT 99.2 UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA ALEXANDRIA DIVISION In Re: NxNetworks, Inc. Chapter 11 Debtor(s) Case Number: 01-14233 ---------- MONTHLY OPERATING REPORT CALENDAR MONTH MAY 1, 2002 TO MAY 31, 2002 --------------------------- FINANCIAL BACKGROUND INFORMATION 1. ACCOUNTING BASIS: Cash Accrual X ------ ---- 2. PREPARER: State the name, address, telephone number and position of the person(s) who actually compiled the information contained in this report. Location: NxNetworks, Inc. 13595 Dulles Technology Drive, Herndon, VA 20171; Greg Washenko (CFO) 703-793-2059 and Jennifer Bell (Controller) 703-793-2076 3. NUMBER OF EMPLOYEES paid during this period: 2 ---- 4. Have there been any CHANGES IN THE NATURE OF YOUR BUSINESS since the last reporting period? Yes / / No /X/. If yes, explain below: 5. Are all BUSINESS LICENSES current? Yes /X/ No / / Not Applicable/ / 6. PRE-PETITION ACCOUNTS RECEIVABLE: Beginning Balance $ 0 Collected this Period $ Write-offs against allowance Sale of asset $ 0 Ending Balance $ 0 7. POST-PETITION ACCOUNTS RECEIVABLE: 0-30 Days: $0 31-60 Days: $0 Over 61-90: $0 Days over 90: $0 -- -- -- --- If there are any post-petition Accounts Receivable over 60 days, provide schedule AR giving a listing of such accounts and explain the delinquencies. 8. POST-PETITION ACCOUNTS PAYABLE: 0-30 Days: $3,953 31-60 Days: $236 Over 60 Days: $215,989 ------ ---- -------- If there are any post-petition Accounts Payable over 30 days, provide Schedule AP giving a listing of such accounts and explain the delinquencies. 9. TAXES. Are all taxes being paid to the proper taxing authorities when due? Yes /X/ No / / Payroll tax is current but sales, property and business taxes are overdue. On the attached IRS Form 6123 report all tax deposits made with any financial institution for federal employment taxes. Be sure the form is complete and signed by an authorized employee of the receiving institution or taxing authority. Attach to this report a completed Form 6123 for each deposit made during the reporting period. Also attach copies of the monthly sales tax report, payroll tax report and unemployment tax report with evidence of payment of both federal and state taxes. 10. ESCROW ACCOUNTS. Are you utilizing your tax account only for deposits and payment of payroll and sales taxes? Yes /X/ No / /. If no, explain: . ------ 11. Are all BOOKS AND RECORDS of the debtor(s) being maintained monthly and are all current? Yes /X/ No / / Explain: 12. INSURANCE EXPIRATION STATEMENT. Policy expiration dates are: Auto & Truck 4/01/02 Liability 4/01/02 ------ ------- Fire Workers Comp. 4/01/02 ------------------- ------- 13. ACTIONS OF DEBTOR. During the last month, did the debtor: (A) Fail to defend or not oppose any action seeking to dispossess the debtor from control or custody of any asset of the estate? Yes/ / No/ / Explain:____________________________________. (B) Maintain such stock, inventory, raw materials, insurance, employees and other resources as are necessary to preserve and maintain the going- concern value of the assets of the debtor? Yes /X/ No / / Explain:____________________________________________________________. 14. TRANSFER OR SALE OF PROPERTY. Did the debtor or any person with control over any of the debtor's assets transfer, convey or abandon any of the debtor's assets to another party during the period of this report other than as set forth herein (including sales by creditors)? Yes /X/ No / / Explain: On March 6, 2002, the US Bankruptcy Court for the Eastern District of Virginia issued an order in which it approved the sale of substantially all of Nx Networks' assets to NSGData.com pursuant to section 363 of the US Bankruptcy code. 15. PAYMENTS TO SECURED CREDITORS during reporting period: (Attach additional sheets, if necessary.)
- ----------------------------------------------------------------------------------------------------------------- Creditor Freq. Of Payments per Amount Next Post Petition Contract (mo, qtr) of Each Payment Pmts. not made Payment Due No. Amt. - ----------------------------------------------------------------------------------------------------------------- None - ----------------------------------------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------------------------------
16. PAYMENTS TO PROFESSIONALS (Attorneys, Accountants, Real Estate Agents, Auctioneers, Appraisers, etc., during reporting period: (Attach additional sheets, if necessary.) --------------------------------------------------------------------------- Professional Service Amount --------------------------------------------------------------------------- Richard Yalen CEO $2,000.00 --------------------------------------------------------------------------- --------------------------------------------------------------------------- 17. QUARTERLY U.S. TRUSTEE FEES paid during reporting period: $ 0 --- 18. VERIFICATION: I declare under penalty of perjury that the information contained in this monthly operating report (including attached schedules) is true and correct to the best of my knowledge, information and belief. Dated: 6/14/02 DEBTOR-IN-POSSESSION Name/Title: Rich Yalen By: ---------------------------------------- ------------------- Address: 13595 Dulles Technology Drive ---------------------------------------- Herndon, VA 20171 Phone: ---------------------------------------- ------------------- UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA ALEXANDRIA DIVISION In Re: Chapter 11 Debtor(s) Case Number: __________ MONTHLY OPERATING REPORT INCOME STATEMENT (BUSINESS DEBTOR, ACCRUAL BASIS) CALENDAR MONTH APRIL 1 TO APRIL 30, 2002 (All figures refer to post-petition transactions)
THIS MONTH YEAR TO DATE (A) TOTAL SALES/INCOME (A) ___________ ___________ SEE ATTACHED COST OF SALES Beginning Inventory ___________ ___________ Purchases of Inventory ___________ ___________ Less Ending Inventory (___________) (___________) Direct Labor (Gross Salaries) ___________ ___________ Purchased Services ___________ ___________ (B) TOTAL COST OF SALES (B) ___________ ___________ (C) GROSS PROFIT (C = A - B) ___________ ___________ OPERATING EXPENSES Officer Salaries (Gross) ___________ ___________ Other Employee Salaries (Gross) ___________ ___________ Taxes (Payroll: Employer's Share) ___________ ___________ Employee Benefits (Insurance, Pension Plan, etc. Employer's Share) Advertising ___________ ___________ Bad Debts ___________ ___________ Depreciation and Amortization ___________ ___________ Entertainment ___________ ___________ Insurance (Real Estate) ___________ ___________ Insurance (Other) ___________ ___________ Interest (Mortgage, Loans, etc.) ___________ ___________ Leases (other than Rent) ___________ ___________ Outside Services & Contractors ___________ ___________ Professional Fees (Attorney, Accountant) ___________ ___________ Rent and leases ___________ ___________ Repairs & Maintenance ___________ ___________ Supplies ___________ ___________ Taxes (Real Property) ___________ ___________ Taxes (Other) ___________ ___________ Telephone ___________ ___________ Travel ___________ ___________ Utilities ___________ ___________ U.S. Trustee Quarterly Fee ___________ ___________
CASE NUMBER: _____________ PERIOD ENDED: ___________ INCOME STATEMENT PAGE 2 THIS MONTH YEAR TO DATE OTHER OPERATING EXPENSES _________________________________________ ____________ ___________ _________________________________________ ____________ ___________ _________________________________________ ____________ ___________ _________________________________________ ____________ ___________ (D)TOTAL OPERATING EXPENSES (D) ____________ ___________ (E) PROFIT/LOSS FROM OPERATIONS (E=C-D) ____________ ___________ OTHER INCOME (EXPENSES) ____________ ___________ Interest Income ____________ ___________ Interest Exp (____________) (___________) _________________________________________ ____________ ___________ _________________________________________ ____________ ___________ _________________________________________ ____________ ___________ _________________________________________ ____________ ___________ EXTRAORDINARY ITEMS- In (Out) _________________________________________ ____________ ___________ _________________________________________ ____________ ___________ _________________________________________ ____________ ___________ _________________________________________ ____________ ___________ (F) TOTAL OTHER INCOME/EXPENSE & EXTRAORDINARY ITEMS (F) ____________ ___________ (G) INCOME BEFORE TAXES (G = E+F) ____________ ___________ (H) INCOME TAX EXPENSE (H) ____________ ___________ (I) NET INCOME (LOSS)(I = G - H) ____________ ___________
NOTE: Accrual basis reporters must attach Cash Reconciliation Reports or a standard Statement of Sources and Uses of Cash to this Report. In Re: ______________________ Case Number___________ CASH RECONCILIATION REPORT (BUSINESS DEBTOR, ACCRUAL BASIS) CALENDAR MONTH ENDING APRIL 30, 2002 (All figures refer to post-petition transactions) OPERATING TOTALS ACCOUNT (A) BEGINNING CASH BALANCE (A) _________ SEE ATTACHED (B) NET INCOME, (LINE (I), PAGE 23) (B) _________ _________ Add Expenses Not Requiring Cash: Depreciation _________ ____________________________ _________ ____________________________ _________ (C) SUB-TOTAL (C) _________ _________ (D) CASH FROM OPERATIONS (D = B + C) _________ _________ OTHER SOURCES (USES) OF CASH: SOURCES (USES) - ------- ---- Decrease (Incr) - Accounts Receivable __________ Decrease (Incr) - Inventory __________ Decrease (Incr) - Equipment __________ Decrease (Incr) - Furniture & Fixtures __________ Decrease (Incr) - _________________ __________ Decrease (Incr) - _________________ __________ Increase (Decr) - Accounts Payable __________ Increase (Decr) - Accrued Interest __________ Increase (Decr) - Accrued P/R Taxes __________ Increase (Decr) - Accrued Prof. Fees __________ Increase (Decr) - Accrued Rent __________ Increase (Decr) - Accrued Salaries __________ Increase (Decr) - Accrued Sales Taxes __________ Increase (Decr) - Notes Payable -Banks __________ Increase (Decr) - Notes Payable -Other __________ Increase (Decr) - ____________________ __________ Increase (Decr) - ____________________ __________ (Less) Unrecorded bank service charges __________ (E) TOTAL OTHER SOURCES (USES) OF CASH (E) __________ __________ (F) ENDING CASH BALANCE (F = A+D+E) __________ __________ (G) BALANCE PER BANK STATEMENT* (G) __________ (H) LESS OUTSTANDING CHECKS (H) __________ (I) ADD DEPOSITS IN TRANSIT (I) __________ (J) RECONCILED BANK BALANCE {J=(G-H)+I} __________ Ending Cash Balance(F) and Reconciled Bank Balance(J) should equal. - ------------------------------------------------------------------ In Re: ______________________ Case Number___________ CASH RECONCILIATION REPORT PAYROLL AND TAX ACCOUNTS (BUSINESS DEBTOR, ACCRUAL BASIS) CALENDAR MONTH ENDING _____________ (All figures refer to post-petition transactions) PAYROLL TAX ACCOUNT ACCOUNT (A) BEGINNING CASH BALANCE (A) __________ _________ CASH RECEIPTS: Transfers from Operating Account __________ ________ Transfers from Payroll Account __________ Other - ________________________ __________ ________ (B) TOTAL CASH RECEIPTS (B) __________ ________ (C) CASH AVAILABLE (C = A + B) __________ ________ CASH DISBURSEMENTS: Gross Payroll for this period $ ___________ Employee Benefits paid ____________ Net Payroll Paid ____________ Transfers to Tax Account ____________ Taxes deposited or paid during period Employees' share of FICA Tax __________ ________ Employer's share of FICA Tax __________ ________ Employees' Federal Income Tax __________ ________ Employees' State Income Tax __________ ________ Unemployment Tax __________ ________ Unrecorded Bank Service Charges __________ ________ Other: _________________ __________ ________ (D) TOTAL DISBURSEMENTS (D) __________ ________ (E) ENDING CASH BALANCE (E = C-D) __________ ________ (F) BALANCE PER BANK STATEMENT(S)* (F) __________ ________ (G) LESS OUTSTANDING CHECKS (G) __________ ________ (H) ADD DEPOSITS IN TRANSIT (H) __________ ________ (I) RECONCILED BANK BALANCE {I =(F-G)+H} __________ ________ Ending Cash Balance(E) and Reconciled Bank Balance(I) should equal. - ------------------------------------------------------------------- IN RE: CASE NUMBER _____________ BALANCE SHEET AS OF __________________ CURRENT ASSETS Cash $____________ SEE ATTACHED Pre-Petition Accounts Receivable ____________ Post-Petition Accounts Receivable ____________ Receivable from Officers, Employees, Affiliates ____________ Notes Receivable ____________ Inventory ____________ Other Current Assets: _______________________________________ ____________ _______________________________________ ____________ TOTAL CURRENT ASSETS ____________ FIXED ASSETS Land ____________ Buildings ____________ Equipment, Furniture & Fixtures ____________ less Accumulated Depreciation (__________) TOTAL FIXED ASSETS ____________ OTHER ASSETS ______________________________________ ____________ ______________________________________ ____________ ______________________________________ ____________ TOTAL OTHER ASSETS ____________ TOTAL ASSETS ____________ POST-PETITION LIABILITIES Accounts Payable ____________ Notes Payable ____________ Rents and Leases Payable ____________ Taxes Payable ____________ Accrued Interest ____________ ______________________________________ ____________ TOTAL-POST PETITION LIABILITIES ____________ PRE-PETITION LIABILITIES Priority Claims ____________ Secured Debts ____________ Unsecured Debt ____________ TOTAL PRE-PETITION LIABILITIES ____________ OWNERS EQUITY (DEFICIT) Capital Stock or Owners Investment ____________ Paid In Capital Surplus ____________ Retained Earnings (Deficit) Pre -Petition ____________ Post-Petition ____________ TOTAL OWNERS EQUITY ____________ TOTAL LIABILITIES AND OWNER'S EQUITY ____________
UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA ALEXANDRIA DIVISION In Re: ) ) Chapter 11 ) Case Number:__01-14223___ ) Debtor(s) ) - ------------------------------------ CASH DISBURSEMENTS SUMMARY REPORT Calendar Month Ending May 31, 2002 Total Disbursements from Operating Account (See Note 1) $37,615.36 ---------- Total Disbursements from Payroll Account (See Note 2) $17,998.95 ---------- *One tax payment made from this account Total Disbursements from Tax Escrow Account (See Note 3) $6,970.69 --------- Total Disbursements from any other Account (See Note 4) 0 ---------- Grand Total Disbursements from all Accounts $62,585.00 ---------- NOTE 1 --Include in this amount all checks written, wire transfers made from, or any other withdrawal from the GENERAL OPERATING ACCOUNT. Exclude only transfers to the debtor-in-possession payroll account, the debtor in possession tax escrow account or other debtor in possession account where the disbursements will be listed on this report. NOTE 2 --Include in this amount all checks written, wire transfers made from, or any other withdrawal from the PAYROLL ACCOUNT. Exclude only transfers to the debtor-in-possession operating account, the debtor in possession tax escrow account or other debtor-in-possession account where the disbursements will be listed on this report. NOTE 3 --Include in this amount all checks written, wire transfers made from, or any other withdrawal from the TAX ESCROW ACCOUNT. Exclude only transfers to the debtor-in-possession operating account, the debtor in possession payroll account or other debtor in possession account where the disbursements will be listed on this report. NOTE 4 -- Include in this amount any other disbursements made by the debtor including (but not limited to) cash PAID FROM A PETTY CASH FUND OR CASH REGISTER, amounts paid from any other debtor in possession account, and amounts PAID FROM THE ACCOUNTS OF OTHERS ON THE DEBTORS BEHALF (for example, disbursements made from a law firm's escrow account as a result of a sale of property.) ATTACH A COPY OF THE MOST RECENT MONTHLY BANK STATEMENT FOR EACH DEBTOR-IN-POSSESSION ACCOUNT. (THE PAGE OF THE STATEMENT SHOWING BANK, ACCOUNT NUMBER AND BEGINNING AND ENDING BALANCE IS SUFFICIENT.) In Re: _________________________________ Case Number _______________ ACCOUNTS RECEIVABLE AS OF APRIL 30, 2002 TOTAL DATE PAST DUE PAST DUE CREDITOR DUE INCURRED (31-60 DAYS) (OVER 60 DAYS) NONE ________ ________ _________ TOTALS THIS PAGE ________ ________ _________ TOTALS ALL PAGES In Re: ___________________________ Case Number _______ ACCOUNTS PAYABLE AS OF __________________ TOTAL DATE PAST DUE PAST DUE CREDITOR DUE INCURRED (31-60 DAYS) (OVER 60 DAYS) SEE ATTACHED ________ ________ _________ TOTALS THIS PAGE ________ ________ _________ TOTALS ALL PAGES UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA ALEXANDRIA DIVISION In Re: Chapter 11 Case Number _________ Debtor(s) MONTHLY OPERATING REPORT INCOME STATEMENT (BUSINESS DEBTOR, CASH BASIS) CALENDAR MONTH __________ TO __________ (All figures refer to post-petition transactions)
THIS MONTH YEAR TO DATE (A) TOTAL SALES/INCOME (A) ___________ ___________ COST OF SALES Purchases of Inventory ___________ ___________ Purchased Services ___________ ___________ _______________________ ___________ ___________ _______________________ ___________ ___________ (B) TOTAL COST OF SALES (B) ___________ ___________ (C) GROSS PROFIT (C = A - B) ___________ ___________ OPERATING EXPENSES Officer Salaries (Gross) ___________ ___________ Other Employee Salaries (Gross) ___________ ___________ Taxes (Payroll: Employer's Share) ___________ ___________ Employee Benefits (Insurance, Pension Plan, etc. Employer's Share) Advertising ___________ ___________ Automobile Expenses ___________ ___________ Entertainment ___________ ___________ Insurance (Real Estate) ___________ ___________ Insurance (Other) ___________ ___________ Interest ___________ ___________ Leases (other than Rent) ___________ ___________ Outside Services & Contractors ___________ ___________ Professional Fees (Attorney, Accountant) ___________ ___________ Rent ___________ ___________ Repairs & Maintenance ___________ ___________ Supplies ___________ ___________ Taxes (Real Property) ___________ ___________ Taxes (Other) ___________ ___________ Telephone ___________ ___________ Travel ___________ ___________ Utilities ___________ ___________ U.S. Trustee Quarterly Fee ___________ ___________ THIS MONTH YEAR TO DATE OTHER OPERATING EXPENSES _________________________ ___________ ___________ _________________________ ___________ ___________ _________________________ ___________ ___________ _________________________ ___________ ___________
(D)TOTAL OPERATING EXPENSES (D) ___________ ___________ (E) PROFIT/LOSS FROM OPERATIONS (E=C-D) ___________ ___________ OTHER INCOME (EXPENSES) Interest _________________________ ___________ ___________ _________________________ ___________ ___________ _________________________ ___________ ___________ _________________________ ___________ ___________ (F) TOTAL OTHER INCOME/EXPENSE (F) ___________ ___________ (G) INCOME BEFORE TAXES (G=E+F) ___________ ___________ (H) INCOME TAX EXPENSE (H) ___________ ___________ (I) NET INCOME (LOSS) (I = G-H) ___________ ___________ EXTRAORDINARY ITEMS Loans Received ___________ ___________ Note Principal (Paid) ___________ ___________ Capital (Purchases) ___________ ___________ (Less) Unrecorded Bank Svc. Chg. ___________ ___________ _________________________ ___________ ___________ _________________________ ___________ ___________ _________________________ ___________ ___________ _________________________ ___________ ___________ (J) TOTAL EXTRAORDINARY ITEMS (J) ___________ ___________ (K) CASH FORWARD FROM PRIOR PERIOD (K) __________ ___________ (L) ENDING CASH BALANCE (L = I+J+K) __________ ___________ (M) BALANCE PER BANK STATEMENT(S)* (M) __________ ___________ (N) LESS OUTSTANDING CHECKS (N) __________ ___________ (O) ADD DEPOSITS IN TRANSIT (O) __________ ___________ (P) RECONCILED BANK BALANCE {P=(M-N)+O} __________ ___________
Ending Cash Balance(L) and Reconciled Bank Balance(P) should equal. - ------------------------------------------------------------------- UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA ALEXANDRIA DIVISION In Re: ) Chapter 11 ) ) Case Number __________ Debtor(s) ) - ---------------------------------- MONTHLY OPERATING REPORT INCOME STATEMENT (NON-BUSINESS DEBTOR, CASH BASIS) CALENDAR MONTH __________ TO __________ (All figures refer to post-petition transactions) THIS MONTH INCOME Salary, Wages, etc. ___________ Interest, dividends, investments ___________ Business income(Rents, Royalties, Sale of Assets, etc.) ___________ Other: ________________________ ___________ (A) TOTAL INCOME (A) ___________ EXPENSES Automobile Car payment ___________ Insurance ___________ Other ___________ Housing Mortgage payment ___________ Insurance ___________ Real estate tax ___________ Rent ___________ Utilities ___________ Insurance (Other) ___________ Interest ___________ Medical ___________ Personal Living Expenses ___________ Professional Fees (Attorney, Acct.,etc) ___________ Taxes (Other) ___________ _________________________ ___________ _________________________ ___________ (B) TOTAL EXPENSES (B) ___________ (C) CASH FLOW (C = A-B) ___________ (D) CASH FORWARD FROM PRIOR PERIOD (D) ___________ (E) ENDING CASH BALANCE (E = D+C) ___________ (F) BALANCE PER BANK STATEMENT(S)* (F) ___________ (G) LESS OUTSTANDING CHECKS (G) ___________ (H) ADD DEPOSITS IN TRANSIT (H) ___________ (I) RECONCILED BANK BALANCE {I=(F-G)+H} ___________ Ending Cash Balance(E) and Reconciled Bank Balance(I) should equal. - ------------------------------------------------------------------- NXNETWORKS, INC. CONDENSED CONSOLIDATED BALANCE SHEET - UNAUDITED AS OF MAY 31, 2002 ASSETS ------ MAY CURRENT ASSETS Cash and cash equivalents 1,492,789 Prepaids 249,259 Note Receivable 150,000 Other Receivable 94,159 ------------- Total Current Assets 1,986,207 OTHER ASSETS Deposits 355,520 ------------- TOTAL ASSETS 2,341,727 ============= LIABILITIES & STOCKHOLDER'S EQUITY POST-PETITION LIABILITIES: Accounts Payable 220,179 Accrued Accounts Payable 273,268 Accrued liability for sub liquidation 338,031 Deferred Revenue -- Taxes Payable 2,149 ------------- Total Post-Petition Liabilities 833,626 PRE-PETITION LIABILITIES: Priority Claims 528,076 Secured Claims 558,735 Unsecured Claims 13,088,400 General pre-petition accruals 4,514,989 Total Pre-Petition Liabilities 18,690,201 ------------- TOTAL LIABILITIES 19,523,827 ============= STOCKHOLDERS' EQUITY: Common Stock 2,430,230 Preferred Stock 7,025,008 APIC, net of filing fees 283,967,334 Deferred Compensation (2,347,751) Accumulated (deficit)/income - Pre-petition (291,148,351) Accumulated (deficit)/income-Post-petition PY (18,977,497) Accumulated (deficit)/income-Post-petition CY (3,320,911) Warrants 6,322,333 Notes Receivable from officer (1,000,000) Cumulative Translation Adj. (132,495) Total Stockholders' equity (17,182,100) ------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 2,341,727 ============= (0) NX NETWORKS, INC. MONTHLY OPERATING REPORT - UNAUDITED INCOME STATEMENT (BUSINESS DEBTOR, ACCRUAL BASIS) CALENDAR MONTH APRIL 1 TO APRIL 30, 2002
APRIL MARCH FEBRUARY JANUARY 2002 2002 2002 2002 YEAR TO DATE ---- ---- ---- ---- ------------ SALES: Product Sales -- 15,455 667,347 271,214 954,016 Service Sales -- 27,372 189,849 335,546 552,766 ----------------------------------------------------------------------- -- 42,827 857,196 606,760 1,506,783 ----------------------------------------------------------------------- COST OF SALES: Product Cost of Sales - materials -- 10,652 282,705 127,713 421,069 Product Cost of Sales - manufacturing overhead -- 5,364 31,046 69,947 106,357 Service Costs -- 46,987 92,630 95,581 235,197 ----------------------------------------------------------------------- -- 63,002 406,381 293,241 762,624 ----------------------------------------------------------------------- GROSS MARGIN -- (20,175) 450,815 313,519 744,159 ----------------------------------------------------------------------- 0.49 OPERATING EXPENSES: - ------------------- OFFICER SALARIES (GROSS) -- 74,707 33,892 33,892 142,492 OTHER EMPLOYEES SALARIES (GROSS) 28,338 30,122 74,655 123,589 256,704 TAXES (PAYROLL: EMPLOYER'S SHARE) 2,516 9,959 8,749 16,403 37,627 EMPLOYEE BENEFITS (insurance,pension etc) 7,500 7,500 15,000 TRAVEL & ENTERTAINMENT (73) 558 11,754 3,895 16,134 TELEPHONE (6,462) 136 3,861 6,330 3,865 UTILITIES (2,500) 5,884 3,200 6,584 OFFICE SUPPLIES 2,146 5,380 3,335 2,066 12,927 POSTAGE & DUPLICATION 32 1,354 3,087 169 4,641 OFFICE RENT 6,204 13,531 13,460 33,195 REPAIRS & MAINTENANCE 317 3,831 4,149 LEGAL 20,093 82,930 10,000 10,250 123,272 ACCOUNTING 1,322 -- 141 1,463 MARKETING EXPENSE 354 325 325 1,004 TRANSFER AGENT FEE 1,275 -- 1,272 1,283 3,830 INSURANCE 18,506 33,155 33,460 33,480 118,600 BAD DEBT EXPENSE -- -- (400,000) (400,000) SALES CONTRACTORS 1,387 4,913 4,913 11,213 CONSULTING 2,000 116,999 49,453 60,335 228,787 OTHER TAX 5,390 12 7,171 12,572 OTHER EXPENSES 1,816 737 4,667 1,059 8,279 ----------------------------------------------------------------------- Total operating expense $ 70,187 $ 368,191 $ 270,667 $ (66,706) $ 642,339 ======================================================================= OPERATING INCOME/(LOSS)/EBITDA (70,187) (388,367) 180,148 380,225 101,820 DEPRECIATION -- 1,629 51,526 54,725 107,881 GOODWILL AMORTIZATION -- -- 16,125 16,125 32,250 ESTIMATED LOSS ON FOREIGN SUBS LIQUIDATION -- -- (37,443) (37,443) ----------------------------------------------------------------------- -- 1,629 30,208 70,850 102,688 Other Income (Expenses) Interest Expense -- -- -- -- -- Interest Income -- 15 3 3 20 Other Income -- 44,388 11,838 3,562 59,789 ----------------------------------------------------------------------- Total income and other expense -- 44,403 11,841 3,565 59,809 ----------------------------------------------------------------------- NET INCOME/(LOSS) FROM OPERATIONS $ (70,187) $ (345,593) $ 161,780 $ 312,940 $ 58,941 ======================================================================= Loss on sale of assets -- (3,299,302) -- (3,299,302) ----------------------------------------------------------------------- NET INCOME/(LOSS) $ (70,187) $(3,644,894) $ 161,780 $ 312,940 $(3,240,361) =======================================================================
NX NETWORKS, INC. MONTHLY OPERATING REPORT - UNAUDITED INCOME STATEMENT (BUSINESS DEBTOR, ACCRUAL BASIS) CALENDAR MONTH MAY 1 TO MAY 31, 2002
MAY APRIL MARCH FEBRUARY JANUARY 2002 2002 2002 2002 2002 YEAR TO DATE ---- ---- ---- ---- ---- ------------ SALES: Product Sales -- -- 15,455 667,347 271,214 954,016 Service Sales -- -- 27,372 189,849 335,546 552,766 =========== =========== =========== =========== =========== =========== -- -- 42,827 857,196 606,760 1,506,783 =========== =========== =========== =========== =========== =========== COST OF SALES: Product Cost of Sales - materials -- -- 10,652 282,705 127,713 421,069 Product Cost of Sales - manufacturing overhead -- -- 5,364 31,046 69,947 106,357 Service Costs -- -- 46,987 92,630 95,581 235,197 =========== =========== =========== =========== =========== =========== -- -- 63,002 406,381 293,241 762,624 =========== =========== =========== =========== =========== =========== GROSS MARGIN -- -- (20,175) 450,815 313,519 744,159 =========== =========== =========== =========== =========== =========== 0.49 OPERATING EXPENSES: OFFICER SALARIES (GROSS) 74,707 33,892 33,892 142,492 OTHER EMPLOYEES SALARIES (GROSS) 26,388 28,338 30,122 74,655 123,589 283,092 TAXES (PAYROLL: EMPLOYER'S SHARE) 2,982 2,516 9,959 8,749 16,403 40,609 EMPLOYEE BENEFITS (insurance, pension etc) 7,500 7,500 15,000 TRAVEL & ENTERTAINMENT -- (73) 558 11,754 3,895 16,134 TELEPHONE -- (6,462) 136 3,861 6,330 3,865 UTILITIES (2,500) 5,884 3,200 6,584 OFFICE SUPPLIES 1,181 2,146 5,380 3,335 2,066 14,108 POSTAGE & DUPLICATION 31 32 1,354 3,087 169 4,672 OFFICE RENT 6,204 13,531 13,460 33,195 REPAIRS & MAINTENANCE 317 3,831 4,149 LEGAL 21,546 20,093 82,930 10,000 10,250 144,818 ACCOUNTING 1,322 -- 141 1,463 MARKETING EXPENSE 354 325 325 1,004 TRANSFER AGENT FEE 2,667 1,275 -- 1,272 1,283 6,497 INSURANCE 19,888 18,506 33,155 33,460 33,480 138,489 BAD DEBT EXPENSE -- -- (400,000) (400,000) SALES CONTRACTORS 1,387 4,913 4,913 11,213 CONSULTING 2,000 2,000 116,999 49,453 60,335 230,787 OTHER TAX 1,684 5,390 12 7,171 14,256 OTHER EXPENSES 2,184 1,816 737 4,667 1,059 10,463 ----------- ----------- ----------- ----------- ----------- ----------- Total operating expense $ 80,550 $ 70,187 $ 368,191 $ 270,667 $ (66,706) $ 722,889 =========== =========== =========== =========== =========== =========== OPERATING INCOME/(LOSS)/EBITDA (80,550) (70,187) (388,367 180,148 380,225 21,270 DEPRECIATION -- -- 1,629 51,526 54,725 107,881 GOODWILL AMORTIZATION -- -- -- 16,125 16,125 32,250 ESTIMATED LOSS ON FOREIGN SUBS LIQUIDATION -- -- -- (37,443) (37,443) =========== =========== =========== =========== =========== =========== -- -- 1,629 30,208 70,850 102,688 Other Income (Expenses) Interest Expense -- -- -- -- -- Interest Income -- -- 15 3 3 20 Other Income -- -- 44,388 11,838 3,562 59,789 =========== =========== =========== =========== =========== =========== Total income and other expense -- -- 44,403 11,841 3,565 59,809 =========== =========== =========== =========== =========== =========== NET INCOME/(LOSS) FROM OPERATIONS $ (80,550) $ (70,187) $ (345,593) $ 161,780 $ 312,940 $ (21,609) =========== =========== =========== =========== =========== =========== Loss on sale of assets -- -- (3,299,302) (3,299,302) ----------- ----------- ----------- ----------- ----------- ----------- NET INCOME/(LOSS) $ (80,550) $ (70,187) $(3,644,894) $ 161,780 $ 312,940 $(3,320,911) =========== =========== =========== =========== =========== ===========
NX NETWORKS, INC. CASH FLOW STATEMENT (SOURCES (USES) OF CASH) - UNAUDITED PAYROLL AND TAX ACCOUNTS (BUSINESS DEBTOR, ACCRUAL BASIS) CALENDAR MONTH ENDING MAY 31, 2002 All Figures Refer to Post-petition Transactions Net Income/(loss) (80,550) Add expenses not requiring Cash: Loss on sale of assets -- Depreciation -- Goodwill amortization -- -------------- Other Sources (Uses) Cash: Accounts receivable Inventories Other current assets 10,102 Deposits -- Note Receivable 150,000 Other Receivable 254,855 Goodwill accounts payable 191,795 Deferred revenue Accrued liabilities (164,242) -------------- total other souces (uses) of cash 442,510 Net decrease in cash and cash equivalents 361,960 Cash beginning 1,130,829 -------------- Cash ending 1,492,789 - NX NETWORKS, INC. AGED POST PETITION ACCOUNTS RECEIVABLE CALENDAR MONTH MAY 1 TO MAY 31, 2002 CUSTOMER NAME 0-30 31-60 60-90 90+ TOTAL 0 0 0 0 0 =================================================== NX NETWORKS, INC. AGED POST PETITION ACCOUNTS RECEIVABLE CALENDAR MONTH MAY 1 TO MAY 31, 2002
VENDORNAME LESSTHAN30 OVER30 OVER60 OVER90 TOTAL Allen & Gledhill 1,796.00 - - - 1,796.00 COUNTY OF FAIRFAX - - 1,997.75 - 1,997.75 EAGLE LEASING COMPANY - 157.50 - - 157.50 EAGLE LEASING COMPANY - 78.75 - - 78.75 EAGLE LEASING COMPANY 78.75 - - - 78.75 EAGLE LEASING COMPANY 78.75 - - - 78.75 EWA TRAVEL, INC - - 1,519.50 - 1,519.50 RCW MIRUS - - 200,294.89 - 200,294.89 TRIGON - - 12,176.74 - 12,176.74 RICHARD YALEN 2,000.00 - - - 2,000.00 3,953.50 236.25 215,988.88 - 220,178.63
EX-99.3 5 ex99-3.txt EXHIBIT 99.3 EXHIBIT 99.3 UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA ALEXANDRIA DIVISION In Re: NxNetworks, Inc. Chapter 11 Debtor(s) Case Number: 01-14233 -------------- MONTHLY OPERATING REPORT CALENDAR MONTH JUNE 1, 2002 TO JUNE 30, 2002 ----------------------------- FINANCIAL BACKGROUND INFORMATION 1. ACCOUNTING BASIS: Cash Accrual X ----- ----- 2. PREPARER: State the name, address, telephone number and position of the person(s) who actually compiled the information contained in this report. Location: NxNetworks, Inc. 13595 Dulles Technology Drive, Herndon, VA 20171; Greg Washenko (CFO) 703-793-2059 and Jennifer Bell (Controller) 703-793-2076 3. NUMBER OF EMPLOYEES paid during this period: 2 --- 4. Have there been any CHANGES IN THE NATURE OF YOUR BUSINESS since the last reporting period? Yes / / No /X/. If yes, explain below: 5. Are all BUSINESS LICENSES current? Yes /X/ No / / Not Applicable / / 6. PRE-PETITION ACCOUNTS RECEIVABLE: Beginning Balance $0 Collected this Period $ Write-offs against allowance Sale of asset $0 Ending Balance $0 7. POST-PETITION ACCOUNTS RECEIVABLE: 0-30 Days: $0 31-60 Days: $0 Over 61-90: $0 Days over 90: $0 --- --- --- --- If there are any post-petition Accounts Receivable over 60 days, provide schedule AR giving a listing of such accounts and explain the delinquencies. 8. POST-PETITION ACCOUNTS PAYABLE: 0-30 Days: $7,027 31-60 Days: $7,493 Over 60 Days: $24,083 ------ ------ ------- If there are any post-petition Accounts Payable over 30 days, provide Schedule AP giving a listing of such accounts and explain the delinquencies. 9. TAXES. Are all taxes being paid to the proper taxing authorities when due? Yes /X/ No / / -- Payroll tax is current but sales, property and business taxes are overdue. On the attached IRS Form 6123 report all tax deposits made with any financial institution for federal employment taxes. Be sure the form is complete and signed by an authorized employee of the receiving institution or taxing authority. Attach to this report a completed Form 6123 for each deposit made during the reporting period. Also attach copies of the monthly sales tax report, payroll tax report and unemployment tax report with evidence of payment of both federal and state taxes. 10. ESCROW ACCOUNTS. Are you utilizing your tax account only for deposits and payment of payroll and sales taxes? Yes /X/ No / /. If no, explain: -------- 11. Are all BOOKS AND RECORDS of the debtor(s) being maintained monthly and are all current? Yes /X/ No / / Explain: 12. INSURANCE EXPIRATION STATEMENT. Policy expiration dates are: Auto & Truck 4/01/02 Liability 4/01/02 ------- ------- Fire Workers Comp. 4/01/02 ----------- -------- 13. ACTIONS OF DEBTOR. During the last month, did the debtor: (A) Fail to defend or not oppose any action seeking to dispossess the debtor from control or custody of any asset of the estate? Yes / / No / / Explain: ___________________________________________ (B) Maintain such stock, inventory, raw materials, insurance, employees and other resources as are necessary to preserve and maintain the going-concern value of the assets of the debtor? Yes /X/ No / / Explain: _____________________________________________________________ 14. TRANSFER OR SALE OF PROPERTY. Did the debtor or any person with control over any of the debtor's assets transfer, convey or abandon any of the debtor's assets to another party during the period of this report other than as set forth herein (including sales by creditors)? Yes /X/ No / / Explain: On March 6, 2002, the US Bankruptcy Court for the Eastern District of Virginia issued an order in which it approved the sale of substantially all of Nx Networks' assets to NSGData.com pursuant to section 363 of the US Bankruptcy code. 15. PAYMENTS TO SECURED CREDITORS during reporting period: (Attach additional sheets, if necessary.) - -------------------------------------------------------------------------------- Creditor Freq. Of Payments per Amount Next Post Petition Contract (mo, qtr) of Each Payment Pmts. not made Payment Due No. Amt. - -------------------------------------------------------------------------------- None - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 16. PAYMENTS TO PROFESSIONALS (Attorneys, Accountants, Real Estate Agents, Auctioneers, Appraisers, etc., during reporting period: (Attach additional sheets, if necessary.) ----------------------------------------------------------------------- Professional Service Amount ----------------------------------------------------------------------- Richard Yalen CEO $1,000.00 ----------------------------------------------------------------------- Swidler Berlin Shereff Bankruptcy Attorney $27,016.50 Friedman, LLP ----------------------------------------------------------------------- RCW Mirus Investment Banker $198,520.00 ----------------------------------------------------------------------- 17. QUARTERLY U.S. TRUSTEE FEES paid during reporting period: $ 0 ---- 18. VERIFICATION: I declare under penalty of perjury that the information contained in this monthly operating report (including attached schedules) is true and correct to the best of my knowledge, information and belief. Dated: 7/15/02 DEBTOR-IN-POSSESSION Name/Title: Rich Yalen By: ---------------------------- --------------------------------- Address: 13595 Dulles Technology Drive ----------------------------- Herndon, VA 20171 Phone: ----------------------------- ----------------------------- UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA ALEXANDRIA DIVISION In Re: Chapter 11 Debtor(s) Case Number: ______________ MONTHLY OPERATING REPORT INCOME STATEMENT (BUSINESS DEBTOR, ACCRUAL BASIS) CALENDAR MONTH APRIL 1 TO APRIL 30, 2002 (All figures refer to post-petition transactions) THIS MONTH YEAR TO DATE (A) TOTAL SALES/INCOME (A) __________ ____________ SEE ATTACHED COST OF SALES Beginning Inventory __________ ____________ Purchases of Inventory __________ ____________ Less Ending Inventory (________) (__________) Direct Labor (Gross Salaries) __________ ____________ Purchased Services __________ ____________ (B) TOTAL COST OF SALES (B) __________ ____________ (C) GROSS PROFIT (C = A - B) __________ ____________ OPERATING EXPENSES Officer Salaries (Gross) __________ ____________ Other Employee Salaries (Gross) __________ ____________ Taxes (Payroll: Employer's Share) __________ ____________ Employee Benefits (Insurance, Pension Plan, etc. Employer's Share) Advertising __________ ____________ Bad Debts __________ ____________ Depreciation and Amortization __________ ____________ Entertainment __________ ____________ Insurance (Real Estate) __________ ____________ Insurance (Other) __________ ____________ Interest (Mortgage, Loans, etc.) __________ ____________ Leases (other than Rent) __________ ____________ Outside Services & Contractors __________ ____________ Professional Fees (Attorney, Accountant) __________ ____________ Rent and leases __________ ____________ Repairs & Maintenance __________ ____________ Supplies __________ ____________ Taxes (Real Property) __________ ____________ Taxes (Other) __________ ____________ Telephone __________ ____________ Travel __________ ____________ Utilities __________ ____________ U.S. Trustee Quarterly Fee __________ ____________ CASE NUMBER: ________________ PERIOD ENDED: ___________ INCOME STATEMENT PAGE 2 THIS MONTH YEAR TO DATE OTHER OPERATING EXPENSES _____________________________________ __________ ____________ _____________________________________ __________ ____________ _____________________________________ __________ ____________ _____________________________________ __________ ____________ (D)TOTAL OPERATING EXPENSES (D) __________ ____________ (E) PROFIT/LOSS FROM OPERATIONS (E=C-D) __________ ____________ OTHER INCOME (EXPENSES) __________ ____________ Interest Income __________ ____________ Interest Exp (________) (__________) _____________________________________ __________ ____________ _____________________________________ __________ ____________ _____________________________________ __________ ____________ _____________________________________ __________ ____________ EXTRAORDINARY ITEMS- In (Out) _____________________________________ __________ ____________ _____________________________________ __________ ____________ _____________________________________ __________ ____________ _____________________________________ __________ ____________ (F) TOTAL OTHER INCOME/EXPENSE & EXTRAORDINARY ITEMS (F) __________ ____________ (G) INCOME BEFORE TAXES (G = E+F) __________ ____________ (H) INCOME TAX EXPENSE (H) __________ ____________ (I) NET INCOME (LOSS)(I = G - H) __________ ____________ NOTE: Accrual basis reporters must attach CASH RECONCILIATION REPORTS or a standard Statement of Sources and Uses of Cash to this Report. In Re: _____________________________ Case Number _____________________ CASH RECONCILIATION REPORT (BUSINESS DEBTOR, ACCRUAL BASIS) CALENDAR MONTH ENDING APRIL 30, 2002 (All figures refer to post-petition transactions) OPERATING TOTALS ACCOUNT (A) BEGINNING CASH BALANCE (A) _________ SEE ATTACHED (B) NET INCOME, (LINE (I), PAGE 23) (B) _________ _________ Add Expenses Not Requiring Cash: Depreciation _________ ___________________________ _________ ___________________________ _________ (C) SUB-TOTAL (C) _________ _________ (D) CASH FROM OPERATIONS (D = B + C) _________ _________ OTHER SOURCES (USES) OF CASH: SOURCES (USES) Decrease (Incr) - Accounts Receivable _________ Decrease (Incr) - Inventory _________ Decrease (Incr) - Equipment _________ Decrease (Incr) - Furniture & Fixtures _________ Decrease (Incr) - _________________ _________ Decrease (Incr) - _________________ _________ Increase (Decr) - Accounts Payable _________ Increase (Decr) - Accrued Interest _________ Increase (Decr) - Accrued P/R Taxes _________ Increase (Decr) - Accrued Prof. Fees _________ Increase (Decr) - Accrued Rent _________ Increase (Decr) - Accrued Salaries _________ Increase (Decr) - Accrued Sales Taxes _________ Increase (Decr) - Notes Payable -Banks _________ Increase (Decr) - Notes Payable -Other _________ Increase (Decr) - ____________________ _________ Increase (Decr) - ____________________ _________ (Less) Unrecorded bank service charges _________ (E) TOTAL OTHER SOURCES (USES) OF CASH (E) (F) ENDING CASH BALANCE (F = A+D+E) _________ _________ (G) BALANCE PER BANK STATEMENT* (G) _________ (H) LESS OUTSTANDING CHECKS (H) _________ (I) ADD DEPOSITS IN TRANSIT (I) _________ (J) RECONCILED BANK BALANCE {J=(G-H)+I} _________ Ending Cash Balance(F) and Reconciled Bank Balance(J) should equal. - ------------------------------------------------------------------- In Re: _____________________________ Case Number _____________________ CASH RECONCILIATION REPORT PAYROLL AND TAX ACCOUNTS (BUSINESS DEBTOR, ACCRUAL BASIS CALENDAR MONTH ENDING _____________ (All figures refer to post-petition transactions) PAYROLL TAX ACCOUNT ACCOUNT (A) BEGINNING CASH BALANCE (A) ___________ __________ CASH RECEIPTS: Transfers from Operating Account ___________ __________ Transfers from Payroll Account ___________ Other - ________________________ ___________ __________ ________________________________ (B) TOTAL CASH RECEIPTS (B) ___________ __________ (C) CASH AVAILABLE (C = A + B) ___________ __________ CASH DISBURSEMENTS: Gross Payroll for this period $ ___________ Employee Benefits paid ___________ Net Payroll Paid ___________ Transfers to Tax Account ___________ Taxes deposited or paid during period Employees' share of FICA Tax ___________ __________ Employer's share of FICA Tax ___________ __________ Employees' Federal Income Tax ___________ __________ Employees' State Income Tax ___________ __________ Unemployment Tax__________ ___________ Unrecorded Bank Service Charges ___________ __________ Other: _________________ ___________ __________ (D) TOTAL DISBURSEMENTS (D) ___________ __________ (E) ENDING CASH BALANCE (E = C-D) ___________ __________ (F) BALANCE PER BANK STATEMENT(S)* (F) ___________ __________ (G) LESS OUTSTANDING CHECKS (G) ___________ __________ (H) ADD DEPOSITS IN TRANSIT (H) ___________ __________ (I) RECONCILED BANK BALANCE {I =(F-G)+H} ___________ __________ Ending Cash Balance(E) and Reconciled Bank Balance(I) should equal. - ------------------------------------------------------------------- In Re: _____________________________ Case Number _____________________ BALANCE SHEET AS OF __________________ CURRENT ASSETS Cash $__________ SEE ATTACHED Pre-Petition Accounts Receivable __________ Post-Petition Accounts Receivable __________ Receivable from Officers, Employees, Affiliates __________ Notes Receivable __________ Inventory __________ Other Current Assets: ___________________________ __________ ___________________________ __________ TOTAL CURRENT ASSETS __________ FIXED ASSETS Land __________ Buildings __________ Equipment, Furniture & Fixtures __________ less Accumulated Depreciation (________) TOTAL FIXED ASSETS __________ OTHER ASSETS ________________________________ __________ ________________________________ __________ ________________________________ __________ TOTAL OTHER ASSETS __________ TOTAL ASSETS __________ POST-PETITION LIABILITIES Accounts Payable __________ Notes Payable __________ Rents and Leases Payable __________ Taxes Payable __________ Accrued Interest __________ _______________________________ __________ TOTAL-POST PETITION LIABILITIES __________ PRE-PETITION LIABILITIES Priority Claims __________ Secured Debts __________ Unsecured Debt __________ TOTAL PRE-PETITION LIABILITIES __________ __________ OWNERS EQUITY (DEFICIT) Capital Stock or Owners Investment __________ Paid In Capital Surplus __________ Retained Earnings (Deficit) Pre -Petition __________ Post-Petition __________ TOTAL OWNERS EQUITY __________ TOTAL LIABILITIES AND OWNER'S EQUITY __________ UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA ALEXANDRIA DIVISION In Re: ) ) Chapter 11 ) Case Number: 01-14223 ) ---------- Debtor(s) ) - ------------------------------------ CASH DISBURSEMENTS SUMMARY REPORT Calendar Month Ending May 31, 2002 Total Disbursements from Operating Account (See Note 1) $248,406.42 ----------- Total Disbursements from Payroll Account (See Note 2) $11,707.81 ---------- *One tax payment made from this account Total Disbursements from Tax Escrow Account (See Note 3) $3,549.65 --------- Total Disbursements from any other Account (See Note 4) 0 --------- Grand Total Disbursements from all Accounts $263,663.88 ----------- NOTE 1 --Include in this amount all checks written, wire transfers made from, or any other withdrawal from the GENERAL OPERATING ACCOUNT. Exclude only transfers to the debtor-in-possession payroll account, the debtor in possession tax escrow account or other debtor in possession account where the disbursements will be listed on this report. NOTE 2 --Include in this amount all checks written, wire transfers made from, or any other withdrawal from the PAYROLL ACCOUNT. Exclude only transfers to the debtor-in-possession operating account, the debtor in possession tax escrow account or other debtor-in-possession account where the disbursements will be listed on this report. NOTE 3 --Include in this amount all checks written, wire transfers made from, or any other withdrawal from the TAX ESCROW ACCOUNT. Exclude only transfers to the debtor-in-possession operating account, the debtor in possession payroll account or other debtor in possession account where the disbursements will be listed on this report. NOTE 4 -- Include in this amount any other disbursements made by the debtor including (but not limited to) cash PAID FROM A PETTY CASH FUND OR CASH REGISTER, amounts paid from any other debtor in possession account, and amounts PAID FROM THE ACCOUNTS OF OTHERS ON THE DEBTORS BEHALF (for example, disbursements made from a law firm's escrow account as a result of a sale of property.) ATTACH A COPY OF THE MOST RECENT MONTHLY BANK STATEMENT FOR EACH DEBTOR-IN-POSSESSION ACCOUNT. (THE PAGE OF THE STATEMENT SHOWING BANK, ACCOUNT NUMBER AND BEGINNING AND ENDING BALANCE IS SUFFICIENT.) In Re: _____________________________ Case Number _____________________ ACCOUNTS RECEIVABLE AS OF APRIL 30, 2002 TOTAL DATE PAST DUE PAST DUE CREDITOR DUE INCURRED (31-60 DAYS) (OVER 60 DAYS) NONE TOTALS THIS PAGE _______ ___________ __________ TOTALS ALL PAGES _______ ___________ __________ In Re: _____________________________ Case Number _____________________ ACCOUNTS PAYABLE AS OF __________________ TOTAL DATE PAST DUE PAST DUE CREDITOR DUE INCURRED (31-60 DAYS) (OVER 60 DAYS) SEE ATTACHED TOTALS THIS PAGE _________ __________ ___________ TOTALS ALL PAGES _________ __________ ___________ UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA ALEXANDRIA DIVISION In Re: Chapter 11 Case Number _________ Debtor(s) MONTHLY OPERATING REPORT INCOME STATEMENT (BUSINESS DEBTOR, CASH BASIS) CALENDAR MONTH TO -------- ---------- (All figures refer to post-petition transactions) THIS MONTH YEAR TO DATE (A) TOTAL SALES/INCOME (A) ______________ _____________ COST OF SALES Purchases of Inventory ______________ _____________ Purchased Services ______________ _____________ _______________________ ______________ _____________ _______________________ ______________ _____________ (B) TOTAL COST OF SALES (B) ______________ _____________ (C) GROSS PROFIT (C = A - B) ______________ _____________ OPERATING EXPENSES Officer Salaries (Gross) ______________ _____________ Other Employee Salaries (Gross) ______________ _____________ Taxes (Payroll: Employer's Share) ______________ _____________ Employee Benefits (Insurance, Pension Plan, etc. Employer's Share) ______________ _____________ Advertising ______________ _____________ Automobile Expenses ______________ _____________ Entertainment ______________ _____________ Insurance (Real Estate) ______________ _____________ Insurance (Other) ______________ _____________ Interest ______________ _____________ Leases (other than Rent) ______________ _____________ Outside Services & Contractors ______________ _____________ Professional Fees (Attorney, Accountant) ______________ _____________ Rent ______________ _____________ Repairs & Maintenance ______________ _____________ Supplies ______________ _____________ Taxes (Real Property) ______________ _____________ Taxes (Other) ______________ _____________ Telephone ______________ _____________ Travel ______________ _____________ Utilities ______________ _____________ U.S. Trustee Quarterly Fee ______________ _____________ THIS MONTH YEAR TO DATE OTHER OPERATING EXPENSES __________________________________ ______________ _____________ __________________________________ ______________ _____________ __________________________________ ______________ _____________ __________________________________ ______________ _____________ (D) TOTAL OPERATING EXPENSES (D) ______________ _____________ (E) PROFIT/LOSS FROM OPERATIONS (E=C-D) ______________ _____________ OTHER INCOME (EXPENSES) Interest __________________________________ ______________ _____________ __________________________________ ______________ _____________ __________________________________ ______________ _____________ __________________________________ ______________ _____________ (F) TOTAL OTHER INCOME/EXPENSE (F) ______________ _____________ (G) INCOME BEFORE TAXES (G=E+F) ______________ _____________ (H) INCOME TAX EXPENSE (H) ______________ _____________ (I) NET INCOME (LOSS) (I = G-H) ______________ _____________ EXTRAORDINARY ITEMS Loans Received ______________ _____________ Note Principal (Paid) ______________ _____________ Capital (Purchases) ______________ _____________ (Less) Unrecorded Bank Svc. Chg. ______________ _____________ __________________________________ ______________ _____________ __________________________________ ______________ _____________ __________________________________ ______________ _____________ __________________________________ ______________ _____________ (J) TOTAL EXTRAORDINARY ITEMS (J) ______________ _____________ (K) CASH FORWARD FROM PRIOR PERIOD (K) ______________ _____________ (L) ENDING CASH BALANCE (L = I+J+K) ______________ _____________ (M) BALANCE PER BANK STATEMENT(S)* (M) ______________ _____________ (N) LESS OUTSTANDING CHECKS (N) ______________ _____________ (O) ADD DEPOSITS IN TRANSIT (O) ______________ _____________ (P) RECONCILED BANK BALANCE {P=(M-N)+O} ______________ _____________ Ending Cash Balance(L) and Reconciled Bank Balance(P) should equal. - ------------------------------------------------------------------- UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA ALEXANDRIA DIVISION In Re: ) Chapter 11 ) ) Case Number __________ Debtor(s) ) - ---------------------------------- MONTHLY OPERATING REPORT INCOME STATEMENT (NON-BUSINESS DEBTOR, CASH BASIS) CALENDAR MONTH TO ---------- ----------- (All figures refer to post-petition transactions) THIS MONTH INCOME Salary, Wages, etc. ___________ Interest, dividends, investments ___________ Business income(Rents, Royalties, Sale of Assets, etc.) ___________ Other: ________________________ ___________ (A) TOTAL INCOME (A) ___________ EXPENSES Automobile Car payment ___________ Insurance ___________ Other ___________ Housing Mortgage payment ___________ Insurance ___________ Real estate tax ___________ Rent ___________ Utilities ___________ Insurance (Other) ___________ Interest ___________ Medical ___________ Personal Living Expenses ___________ Professional Fees (Attorney, Acct.,etc) ___________ Taxes (Other) ___________ (B) TOTAL EXPENSES (B) ___________ (C) CASH FLOW (C = A-B) ___________ (D) CASH FORWARD FROM PRIOR PERIOD (D) ___________ (E) ENDING CASH BALANCE (E = D+C) ___________ (F) BALANCE PER BANK STATEMENT(S)* (F) ___________ (G) LESS OUTSTANDING CHECKS (G) ___________ (H) ADD DEPOSITS IN TRANSIT (H) ___________ (I) RECONCILED BANK BALANCE {I=(F-G)+H} ___________ Ending Cash Balance(E) and Reconciled Bank Balance(I) should equal. - ------------------------------------------------------------------- NXNETWORKS, INC. CONDENSED CONSOLIDATED BALANCE SHEET - UNAUDITED AS OF JUNE 30, 2002 ASSETS ------ JUNE CURRENT ASSETS Cash and cash equivalents 2,525,128 Prepaids 109,124 Note Receivable -- Other Receivable 1,341 ------------- Total Current Assets 2,635,593 OTHER ASSETS Deposits 325,520 ------------- TOTAL ASSETS 2,961,113 ============= LIABILITIES & STOCKHOLDER'S EQUITY ---------------------------------- POST-PETITION LIABILITIES: Accounts Payable 38,603 Accrued Accounts Payable 249,738 Accrued liability for sub liquidation 338,031 Deferred Revenue -- Taxes Payable 2,149 ------------- Total Post-Petition Liabilities 628,521 PRE-PETITION LIABILITIES: Priority Claims 528,076 Secured Claims 558,735 Unsecured Claims 13,088,400 General pre-petition accruals 4,526,696 Total Pre-Petition Liabilities 18,701,908 ------------- TOTAL LIABILITIES 19,330,429 ------------- STOCKHOLDERS' EQUITY: Common Stock 2,430,230 Preferred Stock 7,025,008 APIC, net of filing fees 283,967,334 Deferred Compensation (2,347,751) Accumulated (deficit)/income - Pre-petition (291,148,351) Accumulated (deficit)/income-Post-petition PY (18,977,497) Accumulated (deficit)/income-Post-petition CY (2,508,126) Warrants 6,322,333 Notes Receivable from officer (1,000,000) Cumulative Translation Adj (132,495) Total Stockholders' equity (16,369,315) ------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 2,961,113 ============= NX NETWORKS, INC. MONTHLY OPERATING REPORT - UNAUDITED INCOME STATEMENT (BUSINESS DEBTOR, ACCRUAL BASIS) CALENDAR MONTH JUNE 1 TO JUNE 30, 2002
JUNE MAY APRIL MARCH FEBRUARY JANUARY 2002 2002 2002 2002 2002 2002 YEAR TO DATE SALES: Product Sales -- -- -- 15,455 667,347 271,214 954,016 Service Sales -- -- -- 27,372 189,849 335,546 552,766 ---------------------------------------------------------------------------------------------- -- -- -- 42,827 857,196 606,760 1,506,783 ---------------------------------------------------------------------------------------------- COST OF SALES: Product Cost of Sales - materials -- -- -- 10,652 282,705 127,713 421,069 Product Cost of Sales - manufacturing overhead -- -- -- 5,364 31,046 69,947 106,357 Service Costs -- -- -- 46,987 92,630 95,581 235,197 ---------------------------------------------------------------------------------------------- -- -- -- 63,002 406,381 293,241 762,624 ---------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------- GROSS MARGIN -- -- -- (20,175) 450,815 313,519 744,159 ---------------------------------------------------------------------------------------------- 0.49 OPERATING EXPENSES: OFFICER SALARIES (GROSS) -- 74,707 33,892 33,892 142,492 OTHER EMPLOYEES SALARIES (GROSS) 14,695 26,388 28,338 30,122 74,655 123,589 297,787 TAXES (PAYROLL: EMPLOYER'S SHARE) 494 2,982 2,516 9,959 8,749 16,403 41,103 EMPLOYEE BENEFITS (insurance, pension etc) -- 7,500 7,500 15,000 TRAVEL & ENTERTAINMENT (1,520) -- (73) 558 11,754 3,895 14,614 TELEPHONE -- -- (6,462) 136 3,861 6,330 3,865 UTILITIES -- (2,500) 5,884 3,200 6,584 OFFICE SUPPLIES 1,454 1,181 2,146 5,380 3,335 2,066 15,562 POSTAGE & DUPLICATION -- 31 32 1,354 3,087 169 4,672 OFFICE RENT -- 6,204 13,531 13,460 33,195 REPAIRS & MAINTENANCE -- 317 3,831 4,149 LEGAL 21,170 21,546 20,093 82,930 10,000 10,250 165,988 ACCOUNTING -- 1,322 -- 141 1,463 MARKETING EXPENSE -- 354 325 325 1,004 TRANSFER AGENT FEE 1,273 2,667 1,275 -- 1,272 1,283 7,771 INSURANCE 19,964 19,888 18,506 33,155 33,460 33,480 158,453 BAD DEBT EXPENSE -- -- -- (400,000) (400,000) SALES CONTRACTORS -- 1,387 4,913 4,913 11,213 CONSULTING 1,000 2,000 2,000 116,999 49,453 60,335 231,787 OTHER TAX 3,074 1,684 5,390 12 7,171 17,330 OTHER EXPENSES 513 2,184 1,816 737 4,667 1,059 10,976 ---------------------------------------------------------------------------------------------- Total operating expense $ 62,118 $ 80,550 $ 70,187 $ 368,191 $ 270,667 $ (66,706) $ 785,007 ---------------------------------------------------------------------------------------------- OPERATING INCOME/(LOSS)/EBITDA (62,118) (80,550) (70,187) (388,367) 180,148 380,225 (40,848) DEPRECIATION -- -- 1,629 51,526 54,725 107,881 GOODWILL AMORTIZATION -- -- -- 16,125 16,125 32,250 ESTIMATED LOSS ON FOREIGN SUBS LIQUIDATION -- -- -- -- (37,443) (37,443) ------------------------------------------------------------------------------- -- -- -- 1,629 30,208 70,850 102,688 Other Income (Expenses) Interest Expense -- -- -- -- -- Interest Income -- -- -- 15 3 3 20 Other Income 887,763 -- -- 44,388 11,838 3,562 947,552 ------------------------------------------------------------------------------- Total income and other expense 887,763 -- -- 44,403 11,841 3,562 947,572 ---------------------------------------------------------------------------------------------- NET INCOME/(LOSS) FROM OPERATIONS $ 825,645 $ (80,550) $ (70,187) $ (345,593) $ 161,780 $ 312,940 $ 804,036 ---------------------------------------------------------------------------------------------- Gain (Loss) on sale of assets (12,861) -- -- (3,299,302) (3,312,163) ---------------------------------------------------------------------------------------------- NET INCOME/(LOSS) $ 812,784 $ (80,550) $ (70,187) $(3,644,894) $ 161,780 $ 312,940 $(2,508,127) ==============================================================================================
NX NETWORKS, INC. CASH FLOW STATEMENT (SOURCES (USES) OF CASH) - UNAUDITED PAYROLL AND TAX ACCOUNTS (BUSINESS DEBTOR, ACCRUAL BASIS) CALENDAR MONTH ENDING JUNE 30, 2002 All figures refer to post-petition transactions Net Income/(loss) 825,646 Add expenses not requiring Cash: Loss on sale of assets (12,861) Depreciation -- --------- Goodwill amortization (12,861) Other Sources (Uses) Cash: Accounts receivable Other current assets 140,134 Deposits 30,000 Note Receivable 150,000 Other Receivable 92,818 Goodwill Accounts payable (181,576) Deferred revenue Accrued liabilities (11,822) --------- total other souces (uses) of cash 219,555 Net decrease in cash and cash equivalents 1,032,339 Cash beginning 1,492,789 --------- Cash ending 2,525,128 NX NETWORKS, INC. AGED POST PETITION ACCOUNTS RECEIVABLE CALENDAR MONTH JUNE 1 TO JUNE 30, 2002 CUSTOMER NAME 0-30 31-60 60-90 90+ TOTAL 0 0 0 0 0 ====================================================== NX NETWORKS, INC. AGED POST PETITION ACCOUNTS PAYABLE CALENDAR MONTH JUNE 1 TO JUNE 30, 2002
VENDORNO VENDORNAME LESS THAN 30 OVER 30 OVER 60 OVER 90 TOTAL 60002020 Allen & Gledhill 1,796.00 -- -- -- 1,796.00 60000937 COUNTY OF FAIRFAX -- -- -- 1,997.75 1,997.75 60000937 COUNTY OF FAIRFAX 3,073.50 -- -- -- 3,073.50 60000178 CT Corporation System -- -- -- 204.00 204.00 60000065 EAGLE LEASING COMPANY 78.75 -- -- -- 78.75 60000065 EAGLE LEASING COMPANY 78.75 -- -- -- 78.75 60000182 KELLEY DRYE & WARREN LLP -- -- -- 1,477.99 1,477.99 60000182 KELLEY DRYE & WARREN LLP -- -- -- 103.50 103.50 60000182 KELLEY DRYE & WARREN LLP -- -- 20,299.91 -- 20,299.91 60000182 KELLEY DRYE & WARREN LLP -- 7,492.98 -- -- 7,492.98 60000184 SOFTALIA 1,000.00 -- -- -- 1,000.00 60000019 RICHARD YALEN 1,000.00 -- -- -- 1,000.00 -------------------------------------------------------------------------- 7,027.00 7,492.98 20,299.91 3,783.24 38,603.13 ==========================================================================
EX-99.4 6 ex99-4.txt EXHIBIT 99.4 EXHIBIT 99.4 UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA ALEXANDRIA DIVISION In Re: NxNetworks, Inc. Chapter 11 Debtor(s) Case Number: 01-14233 -------------- MONTHLY OPERATING REPORT CALENDAR MONTH JULY 1, 2002 TO JULY 31, 2002 ----------------------------- FINANCIAL BACKGROUND INFORMATION 1. ACCOUNTING BASIS: Cash Accrual X ----- ----- 2. PREPARER: State the name, address, telephone number and position of the person(s) who actually compiled the information contained in this report. Location: NxNetworks, Inc. 13595 Dulles Technology Drive, Herndon, VA 20171; Greg Washenko (CFO) 703-793-2059 and Jennifer Bell (Controller) 703-793-2076 3. NUMBER OF EMPLOYEES paid during this period: 2 --- 4. Have there been any CHANGES IN THE NATURE OF YOUR BUSINESS since the last reporting period? Yes / / No /X/. If yes, explain below: 5. Are all BUSINESS LICENSES current? Yes /X/ No / / Not Applicable / / 6. PRE-PETITION ACCOUNTS RECEIVABLE: Beginning Balance $0 Collected this Period $ Write-offs against allowance Sale of asset $0 Ending Balance $0 7. POST-PETITION ACCOUNTS RECEIVABLE: 0-30 Days: $0 31-60 Days: $0 Over 61-90: $0 Days over 90: $0 --- --- --- --- If there are any post-petition Accounts Receivable over 60 days, provide schedule AR giving a listing of such accounts and explain the delinquencies. 8. POST-PETITION ACCOUNTS PAYABLE: 0-30 Days: $81,764.87 31-60 Days: $9,288.98 Over 60 Days: $21,881.40 ---------- --------- ---------- If there are any post-petition Accounts Payable over 30 days, provide Schedule AP giving a listing of such accounts and explain the delinquencies. 9. TAXES. Are all taxes being paid to the proper taxing authorities when due? Yes /X/ No / / -- Payroll tax is current but sales, property and business taxes are overdue. On the attached IRS Form 6123 report all tax deposits made with any financial institution for federal employment taxes. Be sure the form is complete and signed by an authorized employee of the receiving institution or taxing authority. Attach to this report a completed Form 6123 for each deposit made during the reporting period. Also attach copies of the monthly sales tax report, payroll tax report and unemployment tax report with evidence of payment of both federal and state taxes. 10. ESCROW ACCOUNTS. Are you utilizing your tax account only for deposits and payment of payroll and sales taxes? Yes /X/ No / /. If no, explain: -------- 11. Are all BOOKS AND RECORDS of the debtor(s) being maintained monthly and are all current? Yes /X/ No / / Explain: 12. INSURANCE EXPIRATION STATEMENT. Policy expiration dates are: Auto & Truck 4/01/02 Liability 4/01/02 ------- ------- Fire Workers Comp. 4/01/02 ----------- -------- 13. ACTIONS OF DEBTOR. During the last month, did the debtor: (A) Fail to defend or not oppose any action seeking to dispossess the debtor from control or custody of any asset of the estate? Yes / / No / / Explain: ___________________________________________ (B) Maintain such stock, inventory, raw materials, insurance, employees and other resources as are necessary to preserve and maintain the going-concern value of the assets of the debtor? Yes /X/ No / / Explain: _____________________________________________________________ 14. TRANSFER OR SALE OF PROPERTY. Did the debtor or any person with control over any of the debtor's assets transfer, convey or abandon any of the debtor's assets to another party during the period of this report other than as set forth herein (including sales by creditors)? Yes /X/ No / / Explain: On March 6, 2002, the US Bankruptcy Court for the Eastern District of Virginia issued an order in which it approved the sale of substantially all of Nx Networks' assets to NSGData.com pursuant to section 363 of the US Bankruptcy code. 15. PAYMENTS TO SECURED CREDITORS during reporting period: (Attach additional sheets, if necessary.) - -------------------------------------------------------------------------------- Creditor Freq. Of Payments per Amount Next Post Petition Contract (mo, qtr) of Each Payment Pmts. not made Payment Due No. Amt. - -------------------------------------------------------------------------------- None - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 16. PAYMENTS TO PROFESSIONALS (Attorneys, Accountants, Real Estate Agents, Auctioneers, Appraisers, etc., during reporting period: (Attach additional sheets, if necessary.) ----------------------------------------------------------------------- Professional Service Amount ----------------------------------------------------------------------- Richard Yalen CEO $1,000.00 ----------------------------------------------------------------------- ----------------------------------------------------------------------- ----------------------------------------------------------------------- 17. QUARTERLY U.S. TRUSTEE FEES paid during reporting period: $3,750.00 --------- 18. VERIFICATION: I declare under penalty of perjury that the information contained in this monthly operating report (including attached schedules) is true and correct to the best of my knowledge, information and belief. Dated: 8/16/02 DEBTOR-IN-POSSESSION Name/Title: Rich Yalen By: ---------------------------- --------------------------------- Address: 13595 Dulles Technology Drive ----------------------------- Herndon, VA 20171 Phone: ----------------------------- ----------------------------- UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA ALEXANDRIA DIVISION In Re: Chapter 11 Debtor(s) Case Number: ______________ MONTHLY OPERATING REPORT INCOME STATEMENT (BUSINESS DEBTOR, ACCRUAL BASIS) CALENDAR MONTH JULY 1 TO JULY 31, 2002 (All figures refer to post-petition transactions) THIS MONTH YEAR TO DATE (A) TOTAL SALES/INCOME (A) __________ ____________ SEE ATTACHED COST OF SALES Beginning Inventory __________ ____________ Purchases of Inventory __________ ____________ Less Ending Inventory (________) (__________) Direct Labor (Gross Salaries) __________ ____________ Purchased Services __________ ____________ (B) TOTAL COST OF SALES (B) __________ ____________ (C) GROSS PROFIT (C = A - B) __________ ____________ OPERATING EXPENSES Officer Salaries (Gross) __________ ____________ Other Employee Salaries (Gross) __________ ____________ Taxes (Payroll: Employer's Share) __________ ____________ Employee Benefits (Insurance, Pension Plan, etc. Employer's Share) Advertising __________ ____________ Bad Debts __________ ____________ Depreciation and Amortization __________ ____________ Entertainment __________ ____________ Insurance (Real Estate) __________ ____________ Insurance (Other) __________ ____________ Interest (Mortgage, Loans, etc.) __________ ____________ Leases (other than Rent) __________ ____________ Outside Services & Contractors __________ ____________ Professional Fees (Attorney, Accountant) __________ ____________ Rent and leases __________ ____________ Repairs & Maintenance __________ ____________ Supplies __________ ____________ Taxes (Real Property) __________ ____________ Taxes (Other) __________ ____________ Telephone __________ ____________ Travel __________ ____________ Utilities __________ ____________ U.S. Trustee Quarterly Fee __________ ____________ CASE NUMBER: ________________ PERIOD ENDED: ___________ INCOME STATEMENT PAGE 2 THIS MONTH YEAR TO DATE OTHER OPERATING EXPENSES _____________________________________ __________ ____________ _____________________________________ __________ ____________ _____________________________________ __________ ____________ _____________________________________ __________ ____________ (D)TOTAL OPERATING EXPENSES (D) __________ ____________ (E) PROFIT/LOSS FROM OPERATIONS (E=C-D) __________ ____________ OTHER INCOME (EXPENSES) __________ ____________ Interest Income __________ ____________ Interest Exp (________) (__________) _____________________________________ __________ ____________ _____________________________________ __________ ____________ _____________________________________ __________ ____________ _____________________________________ __________ ____________ EXTRAORDINARY ITEMS- In (Out) _____________________________________ __________ ____________ _____________________________________ __________ ____________ _____________________________________ __________ ____________ _____________________________________ __________ ____________ (F) TOTAL OTHER INCOME/EXPENSE & EXTRAORDINARY ITEMS (F) __________ ____________ (G) INCOME BEFORE TAXES (G = E+F) __________ ____________ (H) INCOME TAX EXPENSE (H) __________ ____________ (I) NET INCOME (LOSS)(I = G - H) __________ ____________ NOTE: Accrual basis reporters must attach CASH RECONCILIATION REPORTS or a standard Statement of Sources and Uses of Cash to this Report. In Re: _____________________________ Case Number _____________________ CASH RECONCILIATION REPORT (BUSINESS DEBTOR, ACCRUAL BASIS) CALENDAR MONTH ENDING JULY 31, 2002 (All figures refer to post-petition transactions) OPERATING TOTALS ACCOUNT (A) BEGINNING CASH BALANCE (A) _________ SEE ATTACHED (B) NET INCOME, (LINE (I), PAGE 23) (B) _________ _________ Add Expenses Not Requiring Cash: Depreciation _________ ___________________________ _________ ___________________________ _________ (C) SUB-TOTAL (C) _________ _________ (D) CASH FROM OPERATIONS (D = B + C) _________ _________ OTHER SOURCES (USES) OF CASH: SOURCES (USES) Decrease (Incr) - Accounts Receivable _________ Decrease (Incr) - Inventory _________ Decrease (Incr) - Equipment _________ Decrease (Incr) - Furniture & Fixtures _________ Decrease (Incr) - _________________ _________ Decrease (Incr) - _________________ _________ Increase (Decr) - Accounts Payable _________ Increase (Decr) - Accrued Interest _________ Increase (Decr) - Accrued P/R Taxes _________ Increase (Decr) - Accrued Prof. Fees _________ Increase (Decr) - Accrued Rent _________ Increase (Decr) - Accrued Salaries _________ Increase (Decr) - Accrued Sales Taxes _________ Increase (Decr) - Notes Payable -Banks _________ Increase (Decr) - Notes Payable -Other _________ Increase (Decr) - ____________________ _________ Increase (Decr) - ____________________ _________ (Less) Unrecorded bank service charges _________ (E) TOTAL OTHER SOURCES (USES) OF CASH (E) (F) ENDING CASH BALANCE (F = A+D+E) _________ _________ (G) BALANCE PER BANK STATEMENT* (G) _________ (H) LESS OUTSTANDING CHECKS (H) _________ (I) ADD DEPOSITS IN TRANSIT (I) _________ (J) RECONCILED BANK BALANCE {J=(G-H)+I} _________ Ending Cash Balance(F) and Reconciled Bank Balance(J) should equal. - ------------------------------------------------------------------- In Re: _____________________________ Case Number _____________________ CASH RECONCILIATION REPORT PAYROLL AND TAX ACCOUNTS (BUSINESS DEBTOR, ACCRUAL BASIS) CALENDAR MONTH ENDING _____________ (All figures refer to post-petition transactions) PAYROLL TAX ACCOUNT ACCOUNT (A) BEGINNING CASH BALANCE (A) ___________ __________ CASH RECEIPTS: Transfers from Operating Account ___________ __________ Transfers from Payroll Account ___________ Other - ________________________ ___________ __________ ________________________________ (B) TOTAL CASH RECEIPTS (B) ___________ __________ (C) CASH AVAILABLE (C = A + B) ___________ __________ CASH DISBURSEMENTS: Gross Payroll for this period $ ___________ Employee Benefits paid ___________ Net Payroll Paid ___________ Transfers to Tax Account ___________ Taxes deposited or paid during period Employees' share of FICA Tax ___________ __________ Employer's share of FICA Tax ___________ __________ Employees' Federal Income Tax ___________ __________ Employees' State Income Tax ___________ __________ Unemployment Tax ___________ __________ Unrecorded Bank Service Charges ___________ __________ Other: _________________ ___________ __________ (D) TOTAL DISBURSEMENTS (D) ___________ __________ (E) ENDING CASH BALANCE (E = C-D) ___________ __________ (F) BALANCE PER BANK STATEMENT(S)* (F) ___________ __________ (G) LESS OUTSTANDING CHECKS (G) ___________ __________ (H) ADD DEPOSITS IN TRANSIT (H) ___________ __________ (I) RECONCILED BANK BALANCE {I =(F-G)+H} ___________ __________ Ending Cash Balance(E) and Reconciled Bank Balance(I) should equal. - ------------------------------------------------------------------- In Re: _____________________________ Case Number _____________________ BALANCE SHEET AS OF __________________ CURRENT ASSETS Cash $__________ SEE ATTACHED Pre-Petition Accounts Receivable __________ Post-Petition Accounts Receivable __________ Receivable from Officers, Employees, Affiliates __________ Notes Receivable __________ Inventory __________ Other Current Assets: ___________________________ __________ ___________________________ __________ TOTAL CURRENT ASSETS __________ FIXED ASSETS Land __________ Buildings __________ Equipment, Furniture & Fixtures __________ less Accumulated Depreciation (________) TOTAL FIXED ASSETS __________ OTHER ASSETS ________________________________ __________ ________________________________ __________ ________________________________ __________ TOTAL OTHER ASSETS __________ TOTAL ASSETS __________ POST-PETITION LIABILITIES Accounts Payable __________ Notes Payable __________ Rents and Leases Payable __________ Taxes Payable __________ Accrued Interest __________ _______________________________ __________ TOTAL-POST PETITION LIABILITIES __________ PRE-PETITION LIABILITIES Priority Claims __________ Secured Debts __________ Unsecured Debt __________ TOTAL PRE-PETITION LIABILITIES __________ __________ OWNERS EQUITY (DEFICIT) Capital Stock or Owners Investment __________ Paid In Capital Surplus __________ Retained Earnings (Deficit) Pre -Petition __________ Post-Petition __________ TOTAL OWNERS EQUITY __________ TOTAL LIABILITIES AND OWNER'S EQUITY __________ UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA ALEXANDRIA DIVISION In Re: ) ) Chapter 11 ) Case Number: 01-14223 ) ---------- Debtor(s) ) - ------------------------------------ CASH DISBURSEMENTS SUMMARY REPORT Calendar Month Ending July 31, 2002 Total Disbursements from Operating Account (See Note 1) $16,001.35 ----------- Total Disbursements from Payroll Account (See Note 2) $10,215.20 ---------- *One tax payment made from this account Total Disbursements from Tax Escrow Account (See Note 3) $2,705.52 --------- Total Disbursements from any other Account (See Note 4) 0 ---------- Grand Total Disbursements from all Accounts $28,922.07 ---------- NOTE 1 --Include in this amount all checks written, wire transfers made from, or any other withdrawal from the GENERAL OPERATING ACCOUNT. Exclude only transfers to the debtor-in-possession payroll account, the debtor in possession tax escrow account or other debtor in possession account where the disbursements will be listed on this report. NOTE 2 --Include in this amount all checks written, wire transfers made from, or any other withdrawal from the PAYROLL ACCOUNT. Exclude only transfers to the debtor-in-possession operating account, the debtor in possession tax escrow account or other debtor-in-possession account where the disbursements will be listed on this report. NOTE 3 --Include in this amount all checks written, wire transfers made from, or any other withdrawal from the TAX ESCROW ACCOUNT. Exclude only transfers to the debtor-in-possession operating account, the debtor in possession payroll account or other debtor in possession account where the disbursements will be listed on this report. NOTE 4 -- Include in this amount any other disbursements made by the debtor including (but not limited to) cash PAID FROM A PETTY CASH FUND OR CASH REGISTER, amounts paid from any other debtor in possession account, and amounts PAID FROM THE ACCOUNTS OF OTHERS ON THE DEBTORS BEHALF (for example, disbursements made from a law firm's escrow account as a result of a sale of property.) ATTACH A COPY OF THE MOST RECENT MONTHLY BANK STATEMENT FOR EACH DEBTOR-IN-POSSESSION ACCOUNT. (THE PAGE OF THE STATEMENT SHOWING BANK, ACCOUNT NUMBER AND BEGINNING AND ENDING BALANCE IS SUFFICIENT.) In Re: _____________________________ Case Number _____________________ ACCOUNTS RECEIVABLE AS OF APRIL 30, 2002 TOTAL DATE PAST DUE PAST DUE CREDITOR DUE INCURRED (31-60 DAYS) (OVER 60 DAYS) NONE TOTALS THIS PAGE _______ ___________ __________ TOTALS ALL PAGES _______ ___________ __________ In Re: _____________________________ Case Number _____________________ ACCOUNTS PAYABLE AS OF __________________ TOTAL DATE PAST DUE PAST DUE CREDITOR DUE INCURRED (31-60 DAYS) (OVER 60 DAYS) SEE ATTACHED TOTALS THIS PAGE _________ __________ ___________ TOTALS ALL PAGES _________ __________ ___________ UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA ALEXANDRIA DIVISION In Re: Chapter 11 Case Number _________ Debtor(s) MONTHLY OPERATING REPORT INCOME STATEMENT (BUSINESS DEBTOR, CASH BASIS) CALENDAR MONTH TO -------- ---------- (All figures refer to post-petition transactions) THIS MONTH YEAR TO DATE (A) TOTAL SALES/INCOME (A) ______________ _____________ COST OF SALES Purchases of Inventory ______________ _____________ Purchased Services ______________ _____________ _______________________ ______________ _____________ _______________________ ______________ _____________ (B) TOTAL COST OF SALES (B) ______________ _____________ (C) GROSS PROFIT (C = A - B) ______________ _____________ OPERATING EXPENSES Officer Salaries (Gross) ______________ _____________ Other Employee Salaries (Gross) ______________ _____________ Taxes (Payroll: Employer's Share) ______________ _____________ Employee Benefits (Insurance, Pension Plan, etc. Employer's Share) ______________ _____________ Advertising ______________ _____________ Automobile Expenses ______________ _____________ Entertainment ______________ _____________ Insurance (Real Estate) ______________ _____________ Insurance (Other) ______________ _____________ Interest ______________ _____________ Leases (other than Rent) ______________ _____________ Outside Services & Contractors ______________ _____________ Professional Fees (Attorney, Accountant) ______________ _____________ Rent ______________ _____________ Repairs & Maintenance ______________ _____________ Supplies ______________ _____________ Taxes (Real Property) ______________ _____________ Taxes (Other) ______________ _____________ Telephone ______________ _____________ Travel ______________ _____________ Utilities ______________ _____________ U.S. Trustee Quarterly Fee ______________ _____________ THIS MONTH YEAR TO DATE OTHER OPERATING EXPENSES __________________________________ ______________ _____________ __________________________________ ______________ _____________ __________________________________ ______________ _____________ __________________________________ ______________ _____________ (D) TOTAL OPERATING EXPENSES (D) ______________ _____________ (E) PROFIT/LOSS FROM OPERATIONS (E=C-D) ______________ _____________ OTHER INCOME (EXPENSES) Interest __________________________________ ______________ _____________ __________________________________ ______________ _____________ __________________________________ ______________ _____________ __________________________________ ______________ _____________ (F) TOTAL OTHER INCOME/EXPENSE (F) ______________ _____________ (G) INCOME BEFORE TAXES (G=E+F) ______________ _____________ (H) INCOME TAX EXPENSE (H) ______________ _____________ (I) NET INCOME (LOSS) (I = G-H) ______________ _____________ EXTRAORDINARY ITEMS Loans Received ______________ _____________ Note Principal (Paid) ______________ _____________ Capital (Purchases) ______________ _____________ (Less) Unrecorded Bank Svc. Chg. ______________ _____________ __________________________________ ______________ _____________ __________________________________ ______________ _____________ __________________________________ ______________ _____________ __________________________________ ______________ _____________ (J) TOTAL EXTRAORDINARY ITEMS (J) ______________ _____________ (K) CASH FORWARD FROM PRIOR PERIOD (K) ______________ _____________ (L) ENDING CASH BALANCE (L = I+J+K) ______________ _____________ (M) BALANCE PER BANK STATEMENT(S)* (M) ______________ _____________ (N) LESS OUTSTANDING CHECKS (N) ______________ _____________ (O) ADD DEPOSITS IN TRANSIT (O) ______________ _____________ (P) RECONCILED BANK BALANCE {P=(M-N)+O} ______________ _____________ Ending Cash Balance(L) and Reconciled Bank Balance(P) should equal. - ------------------------------------------------------------------- UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA ALEXANDRIA DIVISION In Re: ) Chapter 11 ) ) Case Number __________ Debtor(s) ) - ---------------------------------- MONTHLY OPERATING REPORT INCOME STATEMENT (NON-BUSINESS DEBTOR, CASH BASIS) CALENDAR MONTH TO ---------- ----------- (All figures refer to post-petition transactions) THIS MONTH INCOME Salary, Wages, etc. ___________ Interest, dividends, investments ___________ Business income(Rents, Royalties, Sale of Assets, etc.) ___________ Other: ________________________ ___________ (A) TOTAL INCOME (A) ___________ EXPENSES Automobile Car payment ___________ Insurance ___________ Other ___________ Housing Mortgage payment ___________ Insurance ___________ Real estate tax ___________ Rent ___________ Utilities ___________ Insurance (Other) ___________ Interest ___________ Medical ___________ Personal Living Expenses ___________ Professional Fees (Attorney, Acct.,etc) ___________ Taxes (Other) ___________ _________________________________________ _________________________________________ (B) TOTAL EXPENSES (B) ___________ (C) CASH FLOW (C = A-B) ___________ (D) CASH FORWARD FROM PRIOR PERIOD (D) ___________ (E) ENDING CASH BALANCE (E = D+C) ___________ (F) BALANCE PER BANK STATEMENT(S)* (F) ___________ (G) LESS OUTSTANDING CHECKS (G) ___________ (H) ADD DEPOSITS IN TRANSIT (H) ___________ (I) RECONCILED BANK BALANCE {I=(F-G)+H} ___________ Ending Cash Balance(E) and Reconciled Bank Balance(I) should equal. - ------------------------------------------------------------------- NX NETWORKS, INC. CONDENSED CONSOLIDATED BALANCE SHEET - UNAUDITED AS OF JULY 31, 2002 ASSETS ------ JULY CURRENT ASSETS Cash and cash equivalents 2,790,751 Prepaids 88,302 Note Receivable Other Receivable 1,341 ------------ Total Current Assets 2,880,394 Other Assets Deposits 15,493 ------------ TOTAL ASSETS 2,895,886 ============ LIABILITIES & STOCKHOLDER'S EQUITY ---------------------------------- POST-PETITION LIABILITIES: Accounts Payable 112,935 Accrued Accounts Payable 290,455 Accrued liability for sub liquidation 338,031 Deferred Revenue -- Taxes Payable 2,047 ------------ Total Post-Petition Liabilities 743,468 PRE-PETITION LIABILITIES: Priority Claims 528,076 Secured Claims 558,735 Unsecured Claims 13,088,400 General pre-petition accruals 4,526,696 Total Pre-Petition Liabilities 18,701,908 ------------ TOTAL LIABILITIES 19,445,376 ============ STOCKHOLDERS' EQUITY: Common Stock 2,430,230 Preferred Stock 7,025,008 APIC, net of filing fees 283,967,334 Deferred Compensation (2,347,751) Accumulated (deficit)/income - Pre-petition (291,148,351) Accumulated (deficit)/income-Post-petition PY (18,977,497) Accumulated (deficit)/income-Post-petition CY (2,688,300) Warrants 6,322,333 Notes Receivable from officer (1,000,000) Cumulative Translation Adj (132,495) Total Stockholders' equity (16,549,490) ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 2,895,886 ============ NX NETWORKS, INC. MONTHLY OPERATING REPORT - UNAUDITED INCOME STATEMENT (BUSINESS DEBTOR, ACCRUAL BASIS) CALENDAR MONTH JULY 1 TO JULY 31, 2002
JULY JUNE MAY APRIL MARCH FEBRUARY JANUARY 2002 2002 2002 2002 2002 2002 2002 YEAR TO DATE ------------------------------------------------------------------------------------------------- SALES: Product Sales -- -- -- -- 15,455 667,347 271,214 954,016 Service Sales -- -- -- 27,372 189,849 335,546 552,766 ------------------------------------------------------------------------------------------------- -- -- -- -- 42,827 857,196 606,760 1,506,783 ------------------------------------------------------------------------------------------------- COST OF SALES: Product Cost of Sales - materials -- -- -- -- 10,652 282,705 127,713 421,069 Product Cost of Sales - manufacturing overhead -- -- -- -- 5,364 31,046 69,947 106,357 Service Costs -- -- -- -- 46,987 92,630 95,581 235,197 ------------------------------------------------------------------------------------------------- -- -- -- -- 63,002 406,381 293,241 762,624 ------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------- GROSS MARGIN -- -- -- -- (20,175) 450,815 313,519 744,159 ------------------------------------------------------------------------------------------------- 0.49 OPERATING EXPENSES: - ------------------- OFFICER SALARIES (GROSS) -- -- 74,707 33,892 33,892 142,492 OTHER EMPLOYEES SALARIES (GROSS) 43,155 14,695 26,388 28,338 30,122 74,655 123,589 340,942 TAXES (PAYROLL: EMPLOYER'S SHARE) 1,712 494 2,982 2,516 9,959 8,749 16,403 42,815 EMPLOYEE BENEFITS (insurance, pension etc) -- -- 7,500 7,500 15,000 TRAVEL & ENTERTAINMENT -- (1,520) -- (73) 558 11,754 3,895 14,614 TELEPHONE -- -- -- (6,462) 136 3,861 6,330 3,865 UTILITIES -- -- (2,500) 5,884 3,200 6,584 OFFICE SUPPLIES/STORAGE FEES 6,986 1,454 1,181 2,146 5,380 3,335 2,066 22,549 POSTAGE & DUPLICATION -- -- 31 32 1,354 3,087 169 4,672 OFFICE RENT -- -- 6,204 13,531 13,460 33,195 REPAIRS & MAINTENANCE -- -- 317 3,831 4,149 LEGAL 20,000 21,170 21,546 20,093 82,930 10,000 10,250 185,988 ACCOUNTING 2,350 -- 1,322 -- 141 3,813 MARKETING EXPENSE -- -- 354 325 325 1,004 TRANSFER AGENT FEE 1,274 1,273 2,667 1,275 -- 1,272 1,283 9,044 INSURANCE 19,964 19,964 19,888 18,506 33,155 33,460 33,480 178,417 BAD DEBT EXPENSE -- -- -- -- (400,000) (400,000) SALES CONTRACTORS -- -- 1,387 4,913 4,913 11,213 CONSULTING 84,439 1,000 2,000 2,000 116,999 49,453 60,335 316,226 OTHER TAX (8) 3,074 1,684 5,390 12 7,171 17,322 OTHER EXPENSES 617 513 2,184 1,816 737 4,667 1,059 11,593 ------------------------------------------------------------------------------------------------- Total operating expense $ 180,490 $ 62,118 $ 80,550 $ 70,187 $ 368,191 $ 270,667 $ (66,706) $ 965,497 ------------------------------------------------------------------------------------------------- OPERATING INCOME/(LOSS)/EBITDA (180,490) (62,118) (80,550) (70,187) (388,367) 180,148 380,225 (221,338) DEPRECIATION -- -- 1,629 51,526 54,725 107,881 GOODWILL AMORTIZATION -- -- -- 16,125 16,125 32,250 ESTIMATED LOSS ON FOREIGN SUBS LIQUIDATION -- -- -- -- -- (37,443) -- (37,443) ------------------------------------------------------------------------------------------------- -- -- -- -- 1,629 30,208 70,850 102,688 Other Income (Expenses) Interest Expense -- -- -- -- -- -- Interest Income 316 -- -- -- 15 3 3 336 Other Income -- 887,763 -- -- 44,388 11,838 3,562 947,552 ------------------------------------------------------------------------------------------------- Total income and other expense 316 887,763 -- -- 44,403 11,841 3,565 947,888 ------------------------------------------------------------------------------------------------- NET INCOME/(LOSS) FROM OPERATIONS $ (180,174) $ 825,645 $ (80,550) $ (70,187) $ (345,593) $ 161,780 $ 312,940 $ 623,862 ------------------------------------------------------------------------------------------------- Gain (Loss) on sale of assets -- (12,861) -- -- (3,299,302) (3,312,163) ------------------------------------------------------------------------------------------------- NET INCOME/(LOSS) $ (180,174) $ 812,784 $ (80,550) $ (70,187) $(3,644,894) $ 161,780 $ 312,940 $(2,688,300) -------------------------------------------------------------------------------------------------
NX NETWORKS, INC. CASH FLOW STATEMENT (SOURCES (USES) OF CASH) - UNAUDITED PAYROLL AND TAX ACCOUNTS (BUSINESS DEBTOR, ACCRUAL BASIS) CALENDAR MONTH ENDING JULY 31, 2002 All figures refer to post-petition transactions Net Income/(loss) (180,174) Add expenses not requiring Cash: Loss on sale of assets -- Depreciation -- Goodwill amortization -- --------- Other Sources (Uses) Cash: Accounts receivable Inventories Other current assets 20,822 Deposits 310,028 Note Receivable -- Other Receivable 0 Goodwill Accounts payable 74,332 Deferred revenue Accrued liabilities 40,615 --------- total other souces (uses) of cash 445,797 Net decrease in cash and cash equivalents 265,623 Cash beginning 2,525,128 --------- Cash ending 2,790,751 NX NETWORKS, INC. AGED POST PETITION ACCOUNTS RECEIVABLE CALENDAR MONTH JULY 1 TO JULY 31, 2002 CUSTOMER NAME 0-30 31-60 60-90 90+ TOTAL 0 0 0 0 0 ===================================================== NX NETWORKS, INC. AGED POST PETITION ACCOUNTS PAYABLE CALENDAR MONTH JULY 1 TO JULY 31, 2002
VENDOR NO VENDOR NAME LESS THAN 30 OVER 30 OVER 60 OVER 90 TOTAL 60000191 Alex Yalen 137.50 -- -- -- 137.50 60002020 Allen & Gledhill -- 1,796.00 -- -- 1,796.00 60000062 JERRY CARTER 25,000.00 -- -- -- 25,000.00 60000193 David Parker 8,961.00 -- -- -- 8,961.00 60000026 EQUISERVE LP 1,273.87 -- -- -- 1,273.87 60000132 FRINGE BENEFIT ADMINISTRATOR 4,560.00 -- -- -- 4,560.00 60000182 KELLEY DRYE & WARREN LLP -- -- -- 1,477.99 1,477.99 60000182 KELLEY DRYE & WARREN LLP -- -- -- 103.50 103.50 60000182 KELLEY DRYE & WARREN LLP -- -- -- 20,299.91 20,299.91 60000182 KELLEY DRYE & WARREN LLP -- -- 7,492.98 -- 7,492.98 60000019 RICHARD YALEN 40,832.50 -- -- -- 40,832.50 60000019 RICHARD YALEN 1,000.00 -- -- -- 1,000.00 ----------------------------------------------------------------------- TOTAL 81,764.87 1,796.00 7,492.98 21,881.40 112,935.25 =======================================================================
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