-----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, Asg0osa8Iv1cO7r5peJUQDqbxIcO8CZLmkpOHZ/fnrzCPCRhrT1P75m9ETGVtdZv udM6vGxHrnBEZec9w8aSng== 0000950147-01-501043.txt : 20010605 0000950147-01-501043.hdr.sgml : 20010605 ACCESSION NUMBER: 0000950147-01-501043 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010522 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010604 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NETWORK CONNECTION INC CENTRAL INDEX KEY: 0000932088 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER COMMUNICATIONS EQUIPMENT [3576] IRS NUMBER: 581712432 STATE OF INCORPORATION: GA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-13760 FILM NUMBER: 1653462 BUSINESS ADDRESS: STREET 1: 1811 CHESTNUT ST SUITE 110 STREET 2: THE BELGRAVIA CITY: PHILADELPHIA STATE: PA ZIP: 85034 BUSINESS PHONE: 6022008900 MAIL ADDRESS: STREET 1: 1811 CHESTNUT ST SUITE 110 STREET 2: THE BELGRAVIA CITY: PHILADELPHIA STATE: PA ZIP: 85034 8-K 1 e-6963.txt CURRENT REPORT DTD. 05/22/2001 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) May 22, 2001 The Network Connection, Inc. (Exact Name of Registrant as specified in its charter) Georgia 1-13760 58-1712432 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) The Belgravia, 1811 Chestnut Street, Suite 110, Philadelphia, PA 19103 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (215) 972-8191 (Former Name or Former Address, if Changed Since Last Report) INFORMATION TO BE INCLUDED IN THIS REPORT ITEM 5. OTHER EVENTS. As reported by The Network Connection, Inc., a Georgia corporation ("Registrant"), on April 5, 2001 under Item 3 of a Current Report on Form 8-K, on March 24, 2001, Registrant filed a voluntary petition for relief under Chapter 11 of Title 11 of the United States Code with the United States Bankruptcy Court for the Eastern District of Pennsylvania, in Philadelphia (the "Bankruptcy Court"). The case number is 01-14306. The Registrant continues to maintain its assets, operate its businesses and manage its affairs as a debtor-in-possession pursuant to the provisions of the Bankruptcy Code. By letter dated May 4, 2001, Registrant requested that the United States Securities and Exchange Commission permit Registrant to modify its filing obligations under Section 13 of the Securities Exchange Act of 1934, as amended, in order that, while the Chapter 11 bankruptcy proceeding is pending, Registrant may file its monthly bankruptcy reports under cover of Current Reports on Form 8-K in lieu of filing Quarterly Reports on Form 10-QSB and Annual Reports on Form 10-KSB. Accordingly, Registrant is filing herewith its first monthly report to the Bankruptcy Court for the period ended April 30, 2001, which was filed with the Bankruptcy Court on May 22, 2001. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. (c) EXHIBITS. 99.1 Monthly Report to Bankruptcy Court for the Period Ended April 30, 2001. Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. THE NETWORK CONNECTION, INC. Dated: May 22, 2001 By: /s/ Irwin L. Gross ----------------------------- Name: Irwin L. Gross Title: Chairman and Chief Executive Officer EXHIBIT INDEX Exhibit No. Description ----------- ----------- 99.1 Monthly Report to Bankruptcy Court for the Period Ended April 30, 2001. EX-99.1 2 ex99-1.txt REPORT TO BANKRUPTCY COURT FOR PERIOD END 04/30/01 Exhibit 99.1 UNITED STATES BANKRUPTCY COURT IN RE: THE NETWORK CONNECTION, INC. Case No. 01-14306 (KJC) Reporting Period: 4/30/01 MONTHLY OPERATING REPORT DOCUMENT EXPLANATION REQUIRED DOCUMENT FORM NO. ATTACHED ATTACHED - ----------------- -------- -------- -------- Schedule of Cash Receipts and Disbursements MOR-1 X Bank Reconciliation MOR-1 X Copies of Bank Statements X Cash Disbursements Journals X Statement of Operations MOR-2 X Balance Sheet MOR-3 X Status of Postpetition Taxes MOR-4 X Summary of Unpaid Postpetition Debt MOR-4 X X Listing of Aged Accounts Payable X Accounts Receivable Reconciliation and Aging MOR-5 X Debtor Questionnaire MOR-5 X X I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief. /s/ FRED MAUTE 21-May-01 - ------------------------------------- ------------------------------ Signature of Debtor Date - ------------------------------------- ------------------------------ Signature of Joint Debtor Date /s/ LANCE SILVER 22-May-01 - ------------------------------------- ------------------------------ Signature of Authorized Individual Date LANCE SILVER SECRETARY - ------------------------------------- ------------------------------ Printed Name of Authorized Individual Title of Authorized Individual IN RE: THE NETWORK CONNECTION, INC. Case No. 01-14306 (KJC) Reporting Period: 4/30/01 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
Bank Accounts Current Month Cumulative Filing to Date --------------------------------- ------------------------- ------------------------- Oper. Payroll Other Actual Projected Actual Projected ---------- ------- ---------- ---------- ----------- ---------- ----------- CASH BEGINNING OF MONTH $ -- $ -- $ 6,622.14 $ 6,622.14 $ 10,407.00 $ 6,622.14 $ 10,407.00 Receipts: Cash Sales $ -- $ -- $ -- Accounts Receivable $ -- $ -- $ -- Loans & Advances from Global $13,000.00 $24,000.00 $37,000.00 $ 31,993.00 $37,000.00 $ 31,993.00 Sale of Assets $ 300.00 $ 70.00 $ 370.00 $ 63,100.00 $ 370.00 $ 63,100.00 Tax Refund $ 208.41 $ 208.41 $ -- $ 208.41 $ -- Other Transfers $ 552.39 $ -- $ (500.00) $ 52.39 $ 52.39 ---------- ------- ---------- ---------- ----------- ---------- ----------- TOTAL RECEIPTS $14,060.80 $ -- $23,570.00 $37,630.80 $ 95,093.00 $37,630.80 $ 95,093.00 Disbursements: Contract Labor $13,109.60 $14,795.84 $27,905.44 $ 61,743.00 $27,905.44 $ 61,743.00 Insurance Rent $10,680.49 $10,680.49 $ 12,884.00 $10,680.49 $ 12,884.00 Utilities $ 3,705.18 $ 3,705.18 $ 12,481.00 $ 3,705.18 $ 12,481.00 Lift Lease $ 712.07 $ 712.07 $ 712.07 Bank Charges $ 12.00 $ 119.33 $ 131.33 $ 131.33 Security $ 135.00 $ 135.00 $ 135.00 $ 135.00 $ 135.00 Administrative $ 405.37 $ 405.37 $ 5,000.00 $ 405.37 $ 5,000.00 Storage Fees $ 720.00 $ 720.00 $ 800.00 $ 720.00 $ 800.00 Other $ 3,297.00 $ 3,297.00 Professional Fees $ 10,000.00 $ 10,000.00 U.S. Trustee Quarterly Fees Court Costs ---------- ------- ---------- ---------- ----------- ---------- ----------- TOTAL DISBURSEMENTS $13,121.60 $ -- $31,273.28 $44,394.88 $106,340.00 $44,394.88 $106,340.00 ---------- ------- ---------- ---------- ----------- ---------- ----------- Net Cash Flow $ 939.20 $ -- $(7,703.28) $(6,764.08) $(11,247.00) $(6,764.08) $(11,247.00) CASH-END OF MONTH $ 939.20 $ -- $(1,081.14) $ (141.94) $ (840.00) $ (141.94) $ (840.00) ========== ======= ========== ========== =========== ========== ===========
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN) TOTAL DISBURSEMENTS $ 44,394.88 Less: Transfers to DIP Accounts $ -- Plus: Estate Disbursements made by outside sources $ -- ----------- TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES $ 44,394.88 =========== FORM MOR-1 IN RE: THE NETWORK CONNECTION, INC. Case No. 01-14306 (KJC) Reporting Period: 4/30/01 BANK RECONCILIATIONS Operating Account Other Account #700303316 #0414-1388 ---------- ---------- Balance per Books $ 939.20 $(1,081.14) Bank Balance $ 2,953.95 $ 3,680.04 (+) Deposits in Transit (-) Outstanding Checks $(2,014.75) $(4,761.18) Other Adjusted Bank Balance $ 939.20 $(1,081.14) Deposits in Transit Date Amount Date Amount - ------------------- ---- ------ ---- ------ NONE NONE Checks Outstanding Ck# Amount Ck# Amount - ------------------ --- ------ --- ------ 3008 $ 400.00 3001 $ 220.35 3009 $1,614.75 3344 $ 169.00 3407 $ 32.76 637 $4,339.07 FORM MOR-1 (CON'T) IN RE: THE NETWORK CONNECTION, INC. Case No. 01-14306 (KJC) Reporting Period: 4/30/01 STATEMENT OF OPERATIONS Cumulative April 2001 Filing to Date ---------- -------------- REVENUES Gross Revenues NONE NONE COST OF GOODS SOLD NONE NONE GROSS PROFIT NONE NONE OPERATING EXPENSES Payroll Processing Costs $ 114 $ 114 Payroll Tax Expense $ (208) $ (208) Temporary Help $ 2,000 $ 2,000 Contract Labor $ 46,470 $ 46,470 Office Supplies $ 192 $ 192 Storage & Handling $ 819 $ 819 Waste Management Costs $ 469 $ 469 Rent $ 16,530 $ 16,530 Utilities $ 1,974 $ 1,974 Bank Charges $ 204 $ 204 -------- -------- TOTAL EXPENSES $ 68,564 $ 68,564 -------- -------- NET LOSS BEFORE REORGANIZATION ITEMS $(68,564) $(68,564) REORGANIZATION ITEMS Professional Fees $ (8,800) $ (8,800) Legal Expenses $(15,000) $(15,000) Gain on Sale of Assets $ 370 $ 370 -------- -------- NET LOSS $(91,994) $(91,994) ======== ======== FORM MOR-2 IN RE: THE NETWORK CONNECTION, INC. Case No. 01-14306 (KJC) Reporting Period: 4/30/01 BALANCE SHEET
Book Value at end of Book Value on Current Reporting Month Petition Date ----------------------- ------------- ASSETS CURRENT ASSETS Unrestricted Cash and Equivalents $ 76 $ 6,966 Accounts Receivable (Net) $ 68,219 $ 68,219 Deposits $ 18,676 $ 18,676 Notes Receivable $ -- $ -- Inventories $ -- $ -- Prepaid Expenses $ 56,149 $ 56,149 ------------- ------------- TOTAL CURRENT ASSETS $ 143,120 $ 150,010 ------------- ------------- PROPERTY & EQUIPMENT Machinery & Equipment $ 5,416,274 $ 5,416,274 Furniture, Fixtures & Office Equipment $ 379,186 $ 379,186 Leasehold Improvements $ 208,755 $ 208,755 Vehicles $ 15,865 $ 15,865 Less: Accumulated Depreciation $ (1,533,841) $ (1,533,841) Less: Provision for Write Down of Equipment $ (3,344,897) $ (3,344,897) ------------- ------------- TOTAL PROPERTY & EQUIPMENT $ 1,141,342 $ 1,141,342 ------------- ------------- OTHER ASSETS Other Deposits $ 150 $ 150 Investment in TNCi UK $ 544,530 $ 544,530 ------------- ------------- TOTAL OTHER ASSETS $ 544,680 $ 544,680 ------------- ------------- ------------- ------------- TOTAL ASSETS $ 1,829,142 $ 1,836,032 ============= ============= LIABILITIES & SHAREHOLDERS' EQUITY LIABILITIES NOT SUBJECT TO COMPROMISE (POST-PETITION) Accounts Payable $ 15,550 $ -- Accrued Expenses $ 37,108 $ -- Advance from Global Technologies $ 37,000 $ -- ------------- ------------- TOTAL POST PETITION LIABILITIES $ 89,658 $ -- LIABILITIES SUBJECT TO COMPROMISE (PRE-PETITION) Secured Debt $ -- $ -- Priority Debt $ 106,328 $ 106,328 Unsecured Debt $ 11,849,719 $ 11,854,273 ------------- ------------- TOTAL PRE-PETITION LIABILITIES $ 11,956,047 $ 11,960,601 ------------- ------------- Total Liabilities Shareholders Equity Capital Stock $ 40,210 $ 40,210 Additional Paid In Capital $ 109,241,814 $ 109,241,814 Accumulated Deficit (Pre Petition) $(119,406,593) $(119,406,593) Accumulated Deficit (Post Petition) $ (91,994) $ -- ------------- ------------- Net Equity $ (10,216,563) $ (10,124,569) ------------- ------------- ------------- ------------- Total Liabilities & Owners' Equity $ 1,829,142 $ 1,836,032 ============= =============
FORM MOR-3 IN RE: THE NETWORK CONNECTION, INC. Case No. 01-14306 (KJC) Reporting Period: 4/30/01 STATUS OF POSTPETITION TAXES Beginning Amount Ending Tax Withheld or Amount Date Tax Liaibility Accrued Paid Paid Liability ---------- ------- ---- ---- --------- FEDERAL Withholding NONE NONE Income NONE NONE Other NONE NONE STATE Withholding NONE NONE Income NONE NONE Other NONE NONE TOTAL TAXES NONE NONE Note: Company has no employees as of petition date. SUMMARY OF UNPAID POSTPETITION DEBTS Number of Days Past Due Current 0-30 31-60 61-90 Over 90 Total ------- ---- ----- ----- ------- ----- Accounts Payable $ 7,139 $ 8,411 $15,550 Professional Fees $37,108 $37,108 Advances $37,000 $37,000 ------- ------- ------- TOTAL POSTPETITION DEBT $81,247 $ 8,411 $89,658 ======= ======= ======= Explain how and when the Debtor intends to pay any past-due postpetition debts. Through Sales of Assets and Advances from Global Technologies, Ltd. FORM MOR-4 IN RE: THE NETWORK CONNECTION, INC. Case No. 01-14306 (KJC) Reporting Period: 4/30/01 ACCOUNTS RECEIVABLE RECONCILIATION AND AGING ACCOUNTS RECEIVABLE RECONCILIATION Total Accounts Receivable at the beginning of the reporting period $ 68,219 +Amounts billed during the period $ -- - -Amounts collected during the period $ -- TOTAL ACCOUNTS RECEIVABLE AT THE END OF THE REPORTING PERIOD $ 68,219 ACCOUNTS RECEIVABLE AGING 0 - 30 days old $ -- 31 - 60 days old $ 38,398 61 - 90 days old $ 17,565 91+ days old $ 22,261 Total Accounts Receivable $ 78,224 Amount considered uncollectible (Bad Debt) $(10,005) Accounts Receivable (Net) $ 68,219 DEBTOR QUESTIONNAIRE YES NO 1. Have any assets been sold or transferred outside the normal X course of business this reporting period? If yes, provide an explanation below. 2. Have any funds been disbursed from any account other than a X debtor in possession account this reporting period? If you, provide and explantion below 3. Have all postpetition tax returns been timely filed? If no. X provide explanation below. 4. Are workers compensation, general liablility and other necessary X insurance coverage in effect? If no, provide and explanation below. #2 For the initial days after the petition, funds were disbursed from the company's previous operating account, until a debtor in possession account could be opened in Philadelphia. FORM MOR-5 -----END PRIVACY-ENHANCED MESSAGE-----