EX-99.1 2 v200296_ex99-1.htm Unassociated Document
 
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA

In Re:
     
CHAPTER 11 (BUSINESS)
ENIVEL, INC.
           
       
Case Number:
 
8:10-bk-12735-RK
       
Operating Report Number:        
 
6
   
Debtor(s).
 
For the Month Ending:
 
8/31/2010
             
I. CASH RECEIPTS AND DISBURSEMENTS
A. (GENERAL ACCOUNT)
             
1.   TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS
 
2,928,391.06
             
2.   LESS:  TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS
 
2,897,787.89
             
3.   BEGINNING BALANCE:
     
30,603.17
             
4.   RECEIPTS DURING CURRENT PERIOD:
       
  Accounts Receivable - Post-filing
 
558,313.45
   
  Accounts Receivable - Pre-filing
 
0.00
   
  General Sales
     
0.00
   
  Other (Specify)
 
Trfs from Other DIP Accts
 
219,000.00
   
  Other (Specify)
     
0.00
   
         
  TOTAL RECEIPTS THIS PERIOD:
     
777,313.45
         
5.   BALANCE:
     
807,916.62
         
6.   LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
   
  Transfers to Other DIP Accounts (from page 2)
 
436,352.54
   
  Disbursements (from page 2)
 
308,694.98
   
         
  TOTAL DISBURSEMENTS THIS PERIOD:
     
745,047.52
         
7.   ENDING BALANCE:
     
62,869.10
         
8.   General Account Number(s):
 
ASB: 03206-52794
   
BOH: 0007-050151, 0028-039131
   
FHB: 46-019156
  Depository Name & Location:
 
American Savings Bank, PO Box 2300
   
Honolulu, HI  96804
   
Bank of Hawaii, 1617 Dillingham Blvd
   
Honolulu, HI  96817
   
First Hawaiian Bank, 120 Sand Island Access Rd
   
Honolulu, HI  96819

 
Page 1 of 16

 

 
Date
mm/dd/yyyy
 
Check
Number
 
Payee
 
Purpose
 
Amount
Transferred
   
Amount
Disbursed
   
Total
Disbursements
 
August 2010
     
SEE EXHIBIT I
 
DISBURSEMENTS
          308,694.98       308,694.98  
August 2010
     
SEE EXHIBIT I
 
TRANSFERS
    436,352.54               436,352.54  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
                                  -  
       
TOTAL DISBURSEMENTS THIS PERIOD:
    436,352.54       308,694.98     $ 745,047.52  
 
 
Page 2 of 16

 

 
BANK RECONCILIATION

   
Bank Statement Date:
 
8/31/2010
 
Balance on Statement:
    $ 93,748.78  
                       
Plus deposits in transit (a):                  
       
Deposit Date
 
Deposit Amount
         
   
Deposits from BOH Acc #007-050151 are set
                 
   
forth on Exhibit II and total $1,662.38
        1,662.38    
See Exhibit II
 
   
Deposits from FHB Acc #46-019156 are set
                   
   
forth on Exhibit III and total $12,643.20
        12,643.20    
See Exhibit III
 
                         
                         
                         
TOTAL DEPOSITS IN TRANSIT                 14,305.58  
                         
Less Outstanding Checks (a):                    
                       
   
Check Number
 
Check Date
 
Check Amount
         
   
Checks from BOH Acc #007-050151 are set
                   
   
forth on Exhibit IV and total $27,862.76
        27,862.76    
See Exhibit IV
 
   
Checks from FHB Acc #46-019156 are set
                   
   
forth on Exhibit V and total $17,322.50
        17,322.50    
See Exhibit V
 
                         
                         
                         
                         
                         
                         
                         
                         
                         
                         
                         
                         
TOTAL OUTSTANDING CHECKS:                 45,185.26  
                         
Bank statement Adjustments:                    
Explanation of Adjustments-                    
Unreconciled difference.                    
                         
ADJUSTED BANK BALANCE:               $ 62,869.10  

 
Page 3 of 16

 

B. (PAYROLL ACCOUNT)

1.   TOTAL RECEIPTS PER ALL PRIOR PAYROLL ACCOUNT REPORTS
      933,996.79  
               
2.   LESS: TOTAL DISBURSEMENTS PER ALL PRIOR PAYROLL ACCOUNT REPORTS
      933,902.21  
               
3.   BEGINNING BALANCE:
          94.58  
               
4.   RECEIPTS DURING CURRENT PERIOD:
          166,500.00  
  (Transferred from General Account)
             
               
5.   BALANCE:
          166,594.58  
               
6.   LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
         
  TOTAL DISBURSEMENTS THIS PERIOD:
          166,420.85  
               
7.   ENDING BALANCE:
          173.73  
               
8.   PAYROLL Account Number(s):
 
01-198254
 
       
  Depository Name & Location:
 
First Hawaiian Bank
 
   
120 Sand Island Access Rd
 
   
Honolulu, HI 96819
 

 
Page 4 of 16

 
 
 
Date
mm/dd/yyyy
 
Check Number
 
Payee
 
Purpose
 
Amount
 
August 2010
     
SEE EXHIBIT VI
 
PAYROLL
    166,420.85  
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
       
TOTAL DISBURSEMENTS THIS PERIOD:
    166,420.85  
  
 
Page 5 of 16

 

BANK RECONCILIATION

 
Bank Statement Date:
 
8/31/2010
 
Balance on Statement:
 
8,904.91
 
                   
Plus deposits in transit (a):
               
     
Deposit Date
 
Deposit Amount
       
                   
                   
                   
                   
                   
                   
TOTAL DEPOSITS IN TRANSIT
           
0.00
 
                   
Less Outstanding Checks (a):
               
 
Check Number
 
Check Date
 
Check Amount
       
 
Checks from FHB Acc #01-198254 are set
               
 
forth on Exhibit VII and total $8,731.18
     
8,731.18
  See Exibit VII  
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
TOTAL OUTSTANDING CHECKS:
           
8,731.18
 
                   
Bank statement Adjustments:
           
0.00
 
Explanation of Adjustments-
               
Reclass negative book balance to AP.
               
                   
ADJUSTED BANK BALANCE:
         
$
173.73
 

 
Page 6 of 16

 

I.  CASH RECEIPTS AND DISBURSEMENTS
C. (TAX ACCOUNT)

1.    TOTAL RECEIPTS PER ALL PRIOR TAX ACCOUNT REPORTS
 
0.00
 
       
2.    LESS:  TOTAL DISBURSEMENTS PER ALL PRIOR TAX ACCOUNT REPORTS
     
       
3.   BEGINNING BALANCE:
 
0.00
 
       
4.   RECEIPTS DURING CURRENT PERIOD:
     
   (Transferred from General Account)
     
       
5.    BALANCE:
 
0.00
 
       
6.    LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
     
   TOTAL DISBURSEMENTS THIS PERIOD:
 
0.00
 
       
7.    ENDING BALANCE:
 
0.00
 
         
8.    TAX Account Number(s):
NONE
     
         
    Depository Name & Location:
       
         

 
Page 7 of 16

 

TOTAL DISBURSEMENTS FROM TAX ACCOUNT FOR CURRENT PERIOD
 
Date mm/dd/yyyy
 
Check
Number
 
Payee
 
Purpose
 
Amount
 
       
NONE
         
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
 
  
 
  
 
  
TOTAL DISBURSEMENTS THIS PERIOD:
  
0.00
 
 
 
Page 8 of 16

 
 
BANK RECONCILIATION

 
Bank Statement Date:
 
NONE
 
Balance on Statement:
     

Plus deposits in transit (a):
     
Deposit Date
 
Deposit Amount
     
                 
                 
                 
                 
                 
                 
TOTAL DEPOSITS IN TRANSIT             0.00  
                   
Less Outstanding Checks (a):                
 
Check Number
 
Check Date
 
Check Amount
       
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
TOTAL OUTSTANDING CHECKS:             0.00  
                   
Bank statement Adjustments:                
Explanation of Adjustments-                
                   
ADJUSTED BANK BALANCE:           $ 0.00  

 
Page 9 of 16

 

I. D SUMMARY SCHEDULE OF CASH

ENDING BALANCES FOR THE PERIOD:

     
General Account:
 
62,869.10
     
     
Payroll Account:
 
173.73
     
     
Tax Account:
 
0.00
     
Other Accounts:
 
NONE
   
0.00
     
         
0.00
     
         
0.00
     
Other Monies:
 
NONE
   
0.00
     
   
Petty Cash (from below):
 
6,197.67
     
                 
TOTAL CASH AVAILABLE:
       
69,240.50
 

Petty Cash Transactions:

Date
 
Purpose
 
Amount
     
3/31/2010
 
Beginning balance  
 
6,787.67
     
5/31/2010
 
Three months of petty cash disbursements at
 
(590.00
   
   
main office and 15 stores on supplies, fuel, minor
         
   
repairs and small cash transactions. In the past
         
   
petty cash was reconciled approximately every
         
   
3 to 4 months, going forward, the Debtor will be
         
   
reocnciling monthly.
         
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
TOTAL PETTY CASH TRANSACTIONS:
     
6,197.67
 

 
Page 10 of 16

 

AND OTHER PARTIES TO EXECUTORY CONTRACTS

Creditor, Lessor, Etc.
 
Frequency of Payments
(Mo/Qtr)
 
Amount of
Payment
   
Post-Petition 
payments not made
(Number)
   
Total Due
 
Setal and related entities (secured creditors)(FN1)
 
N/A.  Debt matured pre-petition
    N/A       N/A        
De Lage Landen-Equip Lease
 
Monthly
    277.00       1       277.00  
De Lage Landen-Equip Lease
 
Monthly
    277.00       1       277.00  
Axis-Equipment Lease
 
Monthly
    642.00       1       642.00  
Direct Capital- Equip Lease
 
Monthly
    1,275.00       1       1,275.00  
First Hawaiian Bank-Secured Note
 
Monthly
    6,655.05       6       39,930.30  
Rhoton Family Trust dated 5/8/00
 
N/A.  Debt matured pre-petition
    N/A       N/A          
Kaimana Ventures Ltd. - Landlord
 
Monthly
    1,751.83       0       0.00  
Bishop Square Associates - Landlord
 
Monthly
    1,238.00       0       0.00  
Duesenberg Investment Co.  - Landlord
 
Monthly
    1,157.00       0       0.00  
Pacific Guardian Center - Landlord
 
Monthly
    390.19       0       0.00  
Tanaka Properties, LLC - Landlord - HI Plant (FN2)
 
Monthly
    30,286.17       3       90,858.51  
See attached schedule for remaining leases
         
TOTAL DUE:
      153,347.81  
(FN1) - All of the Debtors are jointly and severally liable for Setal debt, which for convenience is listed in detail on the Monthly report for U.S. Dry Cleaning Services
(FN2) - The Debtors were attempting renegotiate the terms of this lease and did not pay June, July and August rent while in negotiations.  The Debtors will either pay these amounts in October 2010 if the lease is assumed, or landlord will be entitled to an administrative claim if the lease is rejected.

III. TAX LIABILITIES
FOR THE REPORTING PERIOD:

     
Gross Sales Subject to Sales Tax:
597,202.00
     
Total Wages Paid:
273,927.65

         
Total Post-Petition
Amounts Owing
   
Amount Delinquent
 
Date Delinquent
Amount Due
 
(FN3)
 
Federal Withholding
    0.00       0.00    
 
(FN3)
 
State Withholding
    0.00       0.00    
 
(FN3)
 
FICA- Employer's Share
    0.00       0.00    
 
(FN3)
 
FICA- Employee's Share
    0.00       0.00    
 
(FN3)
 
Federal Unemployment
    0.00       0.00    
     
Sales and Use
    6,496.59       0.00    
     
Real Property
    0.00       0.00    
 
Other:
 
State Unemployment (FN3)
    0.00       0.00    
     
TOTAL:
    6,496.59       0.00    

(FN3) - The Debtor uses a payroll service that makes pre-funded payroll tax payments directly to the taxing authorities

 
Page 11 of 16

 

II.  STATUS OF PAYMENTS TO SECURED CREDITORS, LESSORS
AND OTHER PARTIES TO EXECUTORY CONTRACTS
(CONTINUED)

Creditor, Lessor, Etc.
 
Frequency of Payments
(Mo/Qtr)
 
Amount of Payment
   
Post-Petition
payments not made 
(Number)
   
Total Due
 
Trustees of the Estate of Bernice Pauahi Bishop
 
Monthly
    2,381.60       0       0.00  
Manoa Marketplace, LLC
 
Monthly
    2,554.00       0       0.00  
Kahala Center Company
 
Monthly
    3,622.00       0       0.00  
WCSC, LLC
 
Monthly
    1,806.00       0       0.00  
TIAA Realty, Inc.
 
Monthly
    2,282.00       0       0.00  
Fort Street Investment Corp.
 
Monthly
    4,080.00       0       0.00  
Kahala Center Company
 
Monthly
    8,133.34       0       0.00  
Twenty First Technologies Corp.
 
Monthly
    3,178.00       0       0.00  
Victoria Ward, Limited
 
Monthly
    6,264.00       0       0.00  
Manana CDIT, LLC
 
Monthly
    6,319.00       0       0.00  
Vision Windward 1, LLC-Rejected Lease (FN1)
 
Monthly
    4,537.00       3       13,611.00  
Waimalu Plaza Co.-Rejected Lease (FN1)
 
Monthly
    2,159.00       3       6,477.00  
                             
                             
                             
                             
                             
                             
                             
                             
                             
                             
                             
                             
                             
                             
                             
                             
                             
                             

(FN1) - These two leases were rejected by the Debtor at the end of May 2010.  The Debtor owes lease payments for March, April and May 2010

 
Page 11a of 16

 


     
Accounts Payable
 
Accounts Receivable
 
     
Post-Petition
 
Pre-Petition
   
Post-Petition
 
 
30 days or less
  40,880.34   0.00     403,121.77  
 
31 - 60 days
  28,711.03   0.00     88,785.74  
 
61 - 90 days
  33,629.75   0.00     35,326.45  
 
91 - 120 days
  10,532.49   0.00     5,454.40  
 
Over 120 days
  12,454.68   0.00     0.00  
 
TOTAL:
  126,208.29   0.00     532,688.36  

V. INSURANCE COVERAGE

   
(FN1)
   
Name of Carrier
   
Amount of
Coverage
 
Policy Expiration
Date
 
Premium Paid
Through (Date)
   
Liability
   
Argo
    1,000,000  
5/31/2011
 
8/31/2010
   
Medical
   
Argo
    5,000  
5/31/2011
 
8/31/2010
   
Product
   
Argo
    2,000,000  
5/31/2011
 
8/31/2010
   
Fire
   
Argo
    50,000  
5/31/2011
 
8/31/2010
Others:
 
Health (FN2)
   
HMAA
   
Varies
     
8/31/2010
                             

VI.  UNITED STATES TRUSTEE QUARTERLY FEES
(TOTAL PAYMENTS)

Quarterly Period
Ending (Date)
 
Total
Disbursements
   
Quarterly Fees
 
Date Paid
 
Amount Paid
   
Quarterly Fees
Still Owing
 
3/31/2010
    538,591.86       4,875.00  
5/11/10
    4,875.00       0.00  
6/30/2010
    2,344,189.30       9,750.00  
7/30/10
    9,750.00       0.00  
                                0.00  
                                0.00  
                                0.00  
                                0.00  
                                0.00  
                                0.00  
                                0.00  
                                0.00  
                                0.00  
                                0.00  
                                0.00  
                                0.00  
              14,625.00         14,625.00       0.00  

(FN1) The debtor believes the amount due for insurance, except for health, is $0 based on the amount of credits due from the carrier primarily from work compensation insurance overpayments. The Debtor's insurance carrier disputes this and the Debtors are in the process of negotiating with the carrier.
(FN2)The health insurance is paid current at the beginning of each month.

 
Page 12 of 16

 

VII SCHEDULE OF COMPENSATION PAID TO INSIDERS

Name of Insider
 
Date of Order
Authorizing
Compensation
 
Authorized
Gross Compensation
   
Gross
Compensation Paid 
During the Month
 
Michael Drace
 
July 2010
    15,200.00       15,200.00  
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     

VIII.  SCHEDULE OF OTHER AMOUNTS PAID TO INSIDERS

Name of Insider
 
Date of Order
Authorizing
Compensation
 
Description
   
Amount Paid
During the Month
 
NONE
                   
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     

 
Page 13 of 16

 

IX. PROFIT AND LOSS STATEMENT
(ACCRUAL BASIS ONLY)

   
Current Month
   
Cumulative Post-Petition
 
Sales/Revenue:
           
Gross Sales/Revenue
    597,202.00       3,546,158.22  
Less: Returns/Discounts
    98,337.46       589,628.70  
Net Sales/Revenue
    498,864.54       2,956,529.52  
                 
Cost of Goods Sold:
               
Beginning Inventory at cost
    0.00       0.00  
Purchases
    27,201.91       142,787.81  
Less: Ending Inventory at cost
    0.00       0.00  
Cost of Goods Sold (COGS)
    27,201.91       142,787.81  
                 
Gross Profit
    471,662.63       2,813,741.71  
                 
Other Operating Income (Itemize)
    0.00       0.00  
                 
Operating Expenses:
               
Payroll - Insiders
    15,200.00       38,900.00  
Payroll - Other Employees
    258,727.65       1,446,829.99  
Payroll Taxes
    31,756.80       163,422.36  
Other Taxes (Itemize)
    0.00       1,402.12  
Depreciation and Amortization
    17,000.86       104,498.98  
Rent Expense - Real Property
    75,485.15       451,358.13  
Lease Expense - Personal Property
    3,619.68       29,988.29  
Insurance
    9,964.93       43,028.36  
Real Property Taxes
    0.00       0.00  
Telephone and Utilities
    48,108.14       175,686.14  
Repairs and Maintenance
    296.28       14,480.52  
Travel and Entertainment (Itemize)
    290.31       1,518.25  
Miscellaneous Operating Expenses (Itemize)
    43,198.19       312,140.66  
Total Operating Expenses
    503,647.99       2,783,253.80  
                 
Net Gain/(Loss) from Operations
    (31,985.36 )     30,487.91  
                 
Non-Operating Income:
               
Interest Income
    81.66       903.26  
Net Gain on Sale of Assets (Itemize)
    0.00       0.00  
Other (Itemize)
    2,689.80       5,562.97  
Total Non-Operating income
    2,771.46       6,466.23  
                 
Non-Operating Expenses:
               
Interest Expense
    1,412.81       8,534.22  
Legal and Professional (Itemize)
    0.00       17,285.74  
Other (Itemize)
    20,000.00       149,547.46  
Total Non-Operating Expenses
    21,412.81       175,367.42  
                 
NET INCOME/(LOSS)
    (50,626.71 )     (138,413.28 )

 
Page 14 of 16

 

X. BALANCE SHEET
(ACCRUAL BASIS ONLY)

 
 
Current Month End
       
ASSETS             
Current Assets:
           
Unrestricted Cash
    69,240.50        
Restricted Cash
    0.00        
Accounts Receivable
    532,688.36        
Inventory
    0.00        
Notes Receivable
    0.00        
Prepaid Expenses
    56,639.73        
Other (Itemize)
    112,293.75        
Total Current Assets
            770,862.34  
                 
Property, Plant, and Equipment
    5,462,405.89          
Accumulated Depreciation/Depletion
    (3,985,710.11 )        
Net Property, Plant, and Equipment
            1,476,695.78  
                 
Other Assets (Net of Amortization):
               
Due from Insiders
    0.00          
Other (Itemize)
    4,535,109.92          
Total Other Assets
            4,535,109.92  
                 
TOTAL ASSETS
            6,782,668.04  
                 
LIABILITIES
               
Post-petition Liabilities:
               
Accounts Payable
    126,208.29          
Taxes Payable
    6,496.59          
Notes Payable
    0.00          
Professional fees
    0.00          
Secured Debt
    0.00          
Other (Itemize)
    93,867.33          
Total Post-petition Liabilities
            226,572.21  
                 
Pre-petition Liabilities:
               
Secured Liabilities
    442,263.31          
Priority Liabilities
    275,341.65          
Unsecured Liabilities
    791,906.65          
Other (Itemize)
    583,817.82          
Total Pre-petition Liabilities
            2,093,329.43  
                 
TOTAL LIABILITIES
            2,319,901.64  
                 
EQUITY:
               
Pre-petition Owners’ Equity
    4,601,179.68          
Post-petition Profit/(Loss)
    (138,413.28 )        
Direct Charges to Equity
    0.00          
TOTAL EQUITY
            4,462,766.40  
                 
TOTAL LIABILITIES & EQUITY
            6,782,668.04  

 
Page 15 of 16

 

XI.  QUESTIONNAIRE

     
No
 
Yes
1.
Has the debtor-in-possession made any payments on its pre-petition unsecured debt, except as have been authorized by the court?  If "Yes", explain below:
 
X
   
 
N/A
       
           
     
No
 
Yes
2.
Has the debtor-in-possession during this reporting period provided compensation or remuneration to any officers, directors, principals, or other insiders without appropriate authorization?  If "Yes", explain below:
 
X
   
 
N/A
       
           
3.
State what progress was made during the reporting period toward filing a plan of reorganization
       
 
The Debtor and its management continue to formulate the Debtor's plan of reorganization.
       
           
4.
Describe potential future developments which may have a significant impact on the case:
       
 
There is a pending motion to appoint a chapter 11 trustee.  If that motion is granted, it would significantly impact this case.  The Debtor (and its related debtor entities) have a new financial advisor, C.T. Moffitt & Company, and Chief Restructuring Officer, Charles T. Moffitt, that were employed pursuant to Court order entered on August 27, 2010.  The Debtor (and its related entities) employed National Securities Corp. as their investment banker pursuant to Court order entered on August 26, 2010.  The Debtor (and its related entities) believe that the employment of their new financial advisor, CRO and investment banker will assist the Debtors in reorganizing their bankruptcy cases by, among other things, enabling the Debtors to attempt to obtain exit financing.
       
           
5.
Attach copies of all Orders granting relief from the automatic stay that were entered during the reporting period.
       
 
Please see Exhibit VIII attached hereto, which includes a copy of the order granting Merchant Automotive Group's relief from stay motion (entered on July 30, 2010), as well as a copy of the entered order denying the Debtors' motion for reconsideration re the granting of the relief from stay motion (entered on August 2, 2010).  Both orders involve the same property.
       
           
     
No
 
Yes
6.
Did you receive any exempt income this month, which is not set forth in the operating report?  If "Yes", please set forth the amounts and sources of the income below.
 
X
   
 
N/A
       
           
I,
Robert Lee, Chief Executive Officer
       
 
declare under penalty of perjury that I have fully read and understood the foregoing debtor-in-possession operating report and that the information contained herein is true and complete to the best of my knowledge.
       
 
9/24/10
 
/s/ Robert Lee
Date
 
Principal for debtor-in-possession
 
 
Page 16 of 16