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 ========================================================