<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 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) February 20, 1998
2CONNECT EXPRESS, INC.
--------------------------------------
(Exact name of registrant as specified in its charter)
FLORIDA
-------------------------------------
(State or other jurisdiction of
incorporation or organization)
000-22251 65-0674664
--------- ----------
(Commission (I.R.S. Employer
file number) Identification No.)
1700 NW 65th Ave., Suite 4, Plantation, FL 33313
- --------------------------------------------------- ---------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (954) 797-7960
- --------------------------------------------------------------------------------
NOT APPLICABLE
-------------------------
(Former name, former address and former fiscal year,
if changed since last report)
<PAGE> 2
Item 5. OTHER EVENTS
On February 20, 1998, 2Connect Express, Inc. filed with the United States
Bankruptcy Court the Debtor's Monthly Financial Report (Business) for the period
from January 12, 1998 to January 31, 1998. A copy of this Report is filed as
Exhibit A hereto.
On March 2, 1998, 2Connect Express, Inc. announced that it obtained a $500,000
debtor-in-possession credit facility from BayTech Investments, Inc., for working
capital purposes. A copy of the press release issued by 2Connect Express, Inc.
is filed as Exhibit B hereto.
On March 4, 1998, 2Connect Express, Inc. announced that it executed a Letter of
Intent whereby Bobby Allison Cellular Systems of Florida, Inc. would merge with
and into 2Connect upon 2Connect's emergence from bankruptcy, subject to, among
other things, completion of a merger agreement between the two parties and
subject of confirmation by the Bankruptcy Court of a Plan of Reorganization
which would incorporate the merger. A copy of the press release issued by
2Connect Express, Inc. is filed as Exhibit C hereto.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) EXHIBITS
Exhibit 99.1 Debtor's Monthly Financial Report
(Business) For The Period From
January 12, 1998 to January 31, 1998
filed with the United States
Bankruptcy Court.
Exhibit 99.2 Text of Press Release dated March 2, 1998.
Exhibit 99.3 Text of Press Release dated March 4, 1998.
<PAGE> 3
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 thereunto duly authorized.
2CONNECT EXPRESS, INC.
------------------------------------
(Registrant)
Date MARCH 11, 1998 /s/ THOMAS H. HICKS
------------------------------------
Thomas H. Hicks, President and Chief
Executive Officer
<PAGE> 4
EXHIBIT INDEX
-------------
Sequentially
Exhibit Number Description Numbered Page
- -------------- ----------- -------------
99.1 Debtor's Monthly Financial 5
for the period from January 12, 1998
to January 31, 1998
99.2 Press Release dated March 2, 1998 39
Re: 2Connect Express, Inc. debtor-
in-possession credit facility
99.3 Press Release dated March 4, 1998 40
Re: 2Connect Express, Inc. Letter of
Intent whereby Bobby Allison Cellular
Systems of Florida, Inc. would merge
with and into 2Connect Express, Inc.
<PAGE> 1
Exhibit 99.1
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF FLORIDA
FT LAUDERDALE DIVISION
IN RE: | CASE NUMBER: 98-20169-BKC-RBR
|
| JUDGE: Raymond B. Ray
DEBTOR. | CHAPTER 11
DEBTOR'S MONTHLY FINANCIAL REPORT (BUSINESS)
FOR THE PERIOD
FROM January 12, 1998 TO January 31, 1998
Comes now the above-named debtor and files its Periodic Financial
reports in accordance with the Guidelines established by the United
States Trustee and FRBP 2015.
Paul J. Battista, Esq.
Attorney for Debtor
Debtor's Address and Phone Number Attorney's Address and Phone Number:
2Connect Express, Inc Kelley, Drye & Warren, LLP
1700 NW 65th Avenue 201 S. Biscayne Blvd.
Suite 4 2400 Miami Center
Plantation, FL 33313 Miami, FL 33131
(954) 797-7960 (305) 372-2400
1 of 25
<PAGE> 2
MONTHLY FINANCIAL REPORT FOR BUSINESS
FOR THE PERIOD BEGINNING January 12, 1998 AND ENDING January 31, 1998
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
Date of Petition: January 12, 1998
<TABLE>
<CAPTION> CUMULATIVE
CURRENT MONTH PETITION TO DATE
------------- ----------------
<C> <C> <C>
1. Cash at Beginning of Period 106,714.48 106,714.48
----------- ------------
2. Receipts:
A. Cash and Credit Card Sales 170,240.87 170,240.87
----------- ------------
Less: Cash and Credit Card Refund (172.99) (172.99)
----------- ------------
Net Cash and Credit Card Sales 170,067.88 170,067.88
----------- ------------
B. Collection in Post-petition A/R 274.67 274.67
----------- ------------
C. Collection on Pre-petition A/R 52,232.31 52,232.31
----------- ------------
D. Other Receipts (Schedule 2A) 5,449.96 5,449.96
----------- ------------
E. Deposits From Account Sweeps 509,271.62 509,271.62
----------- ------------
F. Less Disbursement Sweeps (508,429.03 (508,429.03)
----------- ------------
3. Total Receipts 228,867.41 228,867.41
----------- ------------
4. Total Cash Available for Operations(1+3) 335,581.89 335,581.89
----------- ------------
5. Disbursements:
A. U.S. Trustee Quarterly Fees -- --
----------- ------------
B. Net Payroll 29,588.13 29,588.13
----------- ------------
C. Payroll Taxes Paid 8,095.33 8,095.33
----------- ------------
D. Sales and Use Taxes -- --
----------- ------------
E. Other Taxes -- --
----------- ------------
F. Rent 17,124.61 17,124.61
----------- ------------
G. Other Leases (attachment 3) -- --
----------- ------------
H. Telephone -- --
----------- ------------
I Utilities 167.27 167.27
----------- ------------
J. Travel and Entertainment 5,319.18 5,319.18
----------- ------------
K. Vehicle Expenses -- --
----------- ------------
L. Office Supplies 206.70 206.70
----------- ------------
M. Advertising 350.00 350.00
----------- ------------
N. Insurance (attachment 7) -- --
----------- ------------
O. Purchases of Fixed Assets -- --
----------- ------------
P. Purchases of Inventory 20,261.00 20,261.00
----------- ------------
Q. Manufacturing Supplies -- --
----------- ------------
R. Repairs and Maintenance -- --
----------- ------------
S. Payments to Secured Creditors -- --
----------- ------------
T. Other Operating Expenses(Schedule 2B) 45,125.86 45,125.86
----------- ------------
6. Total Cash Disbursements 126,238.08 126,238.08
----------- ------------
7. Ending Cash Balance (4-6) 209,343.81 209,343.81
----------- ------------
</TABLE>
I declare under penalty of perjury that this statement and the accompanying
documents and reports are true and correct to the best of my knowledge and
belief.
This 20th day of February, 1998. Signed:__________________________________
Page 2 of 25
<PAGE> 3
MONTHLY FINANCIAL REPORT FOR BUSINESS
JANUARY 12-31, 1998
OTHER RECEIPTS DETAIL
<TABLE>
<CAPTION>
ACCOUNT DATE CHECK# PAYEE PURPOSE WITHDRAWAL DEPOSIT
- ------- ---- -------- ----- ------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
PP OP 1/21/98 Deposit First Union Interest Other Receipts 572.78
DIP OP 1/26/98 Deposit Equipment Sales (Note A) Other Receipts 978.22
DIP OP 1/26/98 Deposit Vendor Refund Other Receipts 550.00
DIP OP 1/26/98 Deposit First Union Interest Other Receipts 61.99
DIP OP 1/27/98 Deposit Equipment Sales (Note A) Other Receipts 150.00
DIP OP 1/27/98 Deposit First Union Interest Other Receipts 21.25
DIP OP 1/28/98 Deposit First Union Interest Other Receipts 21.25
DIP OP 1/29/98 Deposit Equipment Sales (Note A) Other Receipts 1,650.00
DIP OP 1/29/98 Deposit Cobra Payments Other Receipts 312.09
DIP OP 1/29/98 Deposit First Union Interest Other Receipts 20.63
DIP OP 1/30/98 Deposit Equipment Sales (Note A) Other Receipts 1,085.00
DIP OP 1/30/98 Deposit First Union Interest Other Receipts 26.75
OTHER RECEIPTS TOTAL -- 5,449.96
</TABLE>
Note A - Miscellaneous recoveries of closed office equipment sold to customers
in lieu of disposal or storage.
Page 3 of 25
<PAGE> 4
MONTHLY FINANCIAL REPORT FOR BUSINESS
JANUARY 12-31, 1998
OTHER EXPENSES DETAIL
<TABLE>
<CAPTION>
ACCOUNT DATE CHECK # PAYEE PURPOSE WITHDRAWAL DEPOSIT
- ------- ---- ------- ----- ------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
OP 1/13/98 Debit AA Service Charge Bank Charges 1,165.01
DIP OP 1/26/98 012304 3001APPLET Refund 360.38
DIP OP 1/26/98 012305 3001BRAUNS Refund 180.19
DIP OP 1/26/98 012306 3001CONNAL Refund 519.38
DIP OP 1/26/98 012307 3001GAGNON Refund 158.99
DIP OP 1/26/98 012308 3001KHANMO Refund 105.99
DIP OP 1/26/98 012309 3001MANDAR Refund 211.99
DIP OP 1/26/98 012310 3001ROMANO Refund 74.19
DIP OP 1/26/98 012311 3001SILBIG Refund 11.66
DIP OP 1/26/98 012312 3002SANCHE Refund 63.89
DIP OP 1/26/98 012313 3004MARTIN Refund 296.78
DIP OP 1/26/98 012314 3007DINGAT Refund 137.79
DIP OP 1/26/98 012315 3008PETINA Refund 189.74
DIP OP 1/29/98 012334 2002LUGOLU Refund 234.29
DIP OP 1/29/98 012338 2007DINGAT Refund 137.79
DIP OP 1/29/98 012339 2009NICHOL Refund 211.99
OP 1/13/98 Debit Leon Katz Bank Correction (Note A) 34,376.00
DIP OP 1/20/98 012290 Cash Market Research (Note B) 1,400.00
DIP OP 1/21/98 012291 Roy Fuller Cellualr Install 80.00
OP 1/22/98 Debit Telecheck Credit Card Fees 2,680.02
DIP PAY 1/23/98 Debit ADP Payroll Fees 84.43
DIP OP 1/26/98 012316 BellSouth Mobility Sales Promotion 171.20
DIP OP 1/26/98 012317 PrimeCo Sales Promotion 282.50
DIP OP 1/26/98 012318 PR Newswire Press Releases 70.00
DIP OP 1/29/98 012349 PR Newswire Press Releases 70.00
DIP OP 1/29/98 012350 Vision Computers Software 340.00
DIP OP 1/29/98 012351 Washington Inventory Inventory Count 1,500.00
DIP OP 1/29/98 012355 City of Coral Springs Licenses 11.66
OTHER EXPENSES TOTAL 45,125.86 -
</TABLE>
Note A - Bank Correction of double pre-petition credit of a deposit from
1-09-98.
Note B - Cash used for a market research project whereby participants were given
$50 for their assistance.
Page 4 of 25
<PAGE> 5
ATTACHMENT #1
MONTHLY ACCOUNTS RECEIVABLE AGING AND RECONCILIATION
Name of Debtor: 2CONNECT EXPRESS, INC. Case Number: 98-20169-BKC-RBR
Reporting period beginning January 12, 1998, and ending January 31, 1998.
Accounts Receivable at Petition Date: $ 375,266.67
Accounts Receivable Reconciliation (Include all accounts receivable,
pre-petition and post-petition, including charge card sales which have not been
received):
Beginning of Month Balance: $ 375,266.67
Plus: Current Month New Billings: 65,258.84
Less: Collections During Month: (51,940.98)
Less: Collections in transit at 1-12-98 (18,288.75)
---------------
End of Month Balance: $ 370,295.78
===============
Aging: (show the total amount for each age group of accounts incurred since
filing the petition)
0-30 days 31-60 days 61-90 days (less than)90 days Total
--------- ---------- ---------- ------------------ -----
SEE ATTACHED DETAIL
Page 5 of 25
<PAGE> 6
Attachment #1
2CONNECT EXPRESS, INC.
TRADE RECEIVABLES
AS OF 01/31/98
<TABLE>
<CAPTION>
TOTAL 1 TO 30 31 TO 60 61 TO 90 OVER 90
----- ------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
A/R - Commission
Bell South Local-Commission 4,661.60 940.90 1,910.40 1,425.30 385.00
Bell South Mobility-Commission 115,060.00 45,280.00 69,780.00
Nextel-Commission 1,950.00 1,950.00
----------- --------- --------- -------- --------
Subtotal 121,671.60 48,170.90 71,690.40 1,425.30 385.00
----------- --------- --------- -------- --------
A/R - In-House
Bell South Mobility 358.00 358.00
BFI Waste Management 845.80 845.80
Data Base Tech (142.75) (142.75)
Florida Gaming International 101.18 101.18
Ian Gardner I.T.I 128.07 128.07
Channel 4 (WFOR) 1,297.18 351.29 945.89
School Board of Dade County 10,859.82 2,792.57 1,312.96 1,585.56 5,168.73
GMAC Mortgage 440.96 440.96
Catalina Lighting, Hersh Robert 226.30 226.30
Jaguar Security Corporation 385.00 385.00
Medical Research Industries 63.59 63.59
Edward Shane 720.00 720.00
Stern, Agee, & Leach 15,000.00 15,000.00
Walt Disney 1,381.17 1,381.17
Year Import 180.00 180.00
----------- --------- --------- -------- --------
Subtotal 31,844.32 3,018.87 18,539.93 2,735.81 7,549.71
----------- --------- --------- -------- --------
A/R- Trade Ins
Beeper to Go - Trade Ins 2,347.00 740.00 1,600.00 7.00
Bell South Mobility-Trade Ins 30.00 30.00
----------- --------- --------- -------- --------
Subtotal 2,377.00 740.00 1,600.00 30.00 7.00
----------- --------- --------- -------- --------
A/R - Web Page/Hosting
Decorator Fabrics Inc 549.00 549.00
Lady of America 50.00 50.00
Mextone Corporation --
Quick Sign of Miami 417.50 417.50
Sunshine Farm Poultry Inc 150.00 150.00
----------- --------- --------- -------- --------
Subtotal 1,166.50 50.00 699.00 417.50 0.00
----------- --------- --------- -------- --------
A/R - Activation
Bell South Mobility - Activation 65,200.00 3,925.00 7,800.00 14,875.00 38,600.00
PrimeCo - Activation (4,250.00) 1,075.00 10,775.00 3,100.00 (19,200.00)
Sprint - Activation 24,780.00 1,995.00 4,165.00 6,860.00 11,760.00
----------- --------- --------- -------- --------
Subtotal 85,730.00 6,995.00 22,740.00 24,835.00 31,160.00
----------- --------- --------- -------- --------
A/R - Coop Advertising
Astra - Coop 72.00 72.00
Beeper to Go-Coop 107.00 107.00
Casio- Coop 45.00 45.00
Cell Star -Coop 13,127.00 99.00 945.00 12,083.00
Ericcson - Coop 668.00 668.00
Go-Neo Coop 32.00 32.00
Intelidata Coop 68.00 68.00
Lucent Tech-Coop Adv 176.00 176.00
Ora Electronic Coop 172.00 127.00
Panasonic Coop 293.00 1.00 292.00
Recoton Coop 282.00 42.00 240.00
Smart Talk Coop 640.00 640.00
Uniden Coop 417.00 417.00
Vtech Coop Adv 8,059.00 2,586.00 3,111.00 2,362.00
----------- --------- --------- -------- --------
Subtotal 24,158.00 421.00 4,568.00 4,056.00 15,113.00
----------- --------- --------- -------- --------
A/R- Grand Openings
Bell South Mobility - Mkt Dev 49,999.98 8,333.32 8,333.33 33,333.33
Direct TV Mkt Dev. 360.00 360.00
----------- --------- --------- -------- --------
Subtotal 50,359.98 0.00 8,693.32 8,333.33 33,333.33
----------- --------- --------- -------- --------
A/R- Market Development
PrimeCo NSA (2,500.00) (2,500.00)
</TABLE>
Page 6 of 25
<PAGE> 7
2CONNECT EXPRESS, INC.
TRADE RECEIVABLES
AS OF 01/31/98
<TABLE>
<CAPTION>
TOTAL 1 TO 30 31 TO 60 61 TO 90 OVER 90
----- ------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
Lucent NSA (0.28) (0.28)
Psion NSA 2,500.00 500.00 2,000.00
Sprint NSA 13,500.00 3,000.00 10,500.00
---------- ---------- -------- --------- ----------
Subtotal 13,499.72 (2,500.28) 0.00 3,500.00 12,500.00
---------- ---------- -------- --------- ----------
A/R - Rebate
CellStar Rebate 2,971,00 249.00 2,362.00 360.00
Panasonic Rebate 97.00 97.00
Recoton Rebate 189.30 25.00 144.00 0.30
---------- ---------- -------- --------- ----------
Subtotal 3,237.30 274.00 2,603.00 360.00 0.30
---------- ---------- -------- --------- ----------
A/R - Residuals
Bell South Mobility Residuals 33,822.97 28,369.00 2,835.00 320.64 2,298.33
Icanect Residual 390.00 105.00 82.00 82.00 121.00
PrimeCo Residual 1,106.00 496.00 305.00 305.00
Trescom Residual 676.58 161.74 500.00 14.82
World Comm Residual 255.83 140.00 50.00 17.33 48.50
---------- ---------- -------- --------- ----------
Subtotal 36,2251.36 29,271.74 3,772.00 739.79 2,467.83
========== ========== ======== ========= ==========
Grand Total Accounts Receivable, $370,295.78 $86,441.23 $134,905.65 $46,432.73 $102,516.17
net
</TABLE>
Page 7 of 25
<PAGE> 8
ATTACHMENT #2
MONTHLY ACCOUNTS PAYABLE AND SECURED PAYMENTS REPORT
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
Reporting period beginning January 12, 1998, and ending January 31, 1998.
In the space below list all invoices or bills incurred and not paid since the
filing of the petition. Do not include amounts owed prior to filing the
petition.
Date Days
Incurred Outstanding Vendor Description Amount
- -------- ----------- ------ ----------- ------
See Attached Schedule: "Period Cutoff Aged AP - Historical Detail Aged
by Due Date"
ACCOUNTS PAYABLE RECONCILIATION (Post Petition Only):
Opening Balance (total from prior report) $ -
Plus: New Indebtedness Incurred This Month 74,757.92
Less: Amount Paid on Prior Accounts Payable 30,200.98
--------------
Ending Month Balance $ 44,556.94
==============
SECURED: List status of payments to Secured Creditors and Lessors (Post-Petition
Only):
Secured Date Number of Post- Total Amount of
Creditor/ Payment Payment Petition Payments Post-Petition
Lessor Due Amount Delinquent Payments Delinquent
- --------- ------- ------- ----------------- -------------------
None
Page 8 of 25
<PAGE> 9
<TABLE>
<CAPTION>
Date 03/1 1/98 11:34am 2Connect Express, Inc. Page 1
02-99-175 Period Cutoff Aged AP (03.681. - Historical Detail Aged by Due Date Rept 03.681
Period: 01-98 Aging Date: 01/31/98
Vendor/ Name/ Vendor Status/ Days Past Due
1 31 61
Doc Ref Inv Inv Doc Disc Due Pay to to to Over
Type Nbr Nbr Date Stat Date Date Date Current 30 60 90 90 Balance
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000FISHMA Marc Fishman O VO 004251 01309 1/30/98 A 1/30/98 1/30/98 1/30/98 - 529.56 - - - 529.56
Vendor Total - 529.56 - - - 529.56
2000FOWLER Billy Fowler O VO 004254 01319 1/31/98 A 1/31/98 1/31/98 1/31/98 334.39 - - - - 334.39
Vendor Total 334.39 - - - - 334.39
2000GRANDY John Grandy O VO 004249 01319 1/31/98 A 1/31/98 1/31/98 1/31/98 226.84 - - - - 226.84
Vendor Total 226.84 - - - - 226.84
2000HICKST Thomas H.
Hicks O VO 004248 02019 1/31/98 A 1/31/98 1/31/98 1/31/98 127.92 - - - 127.92
Vendor Total 127.92 - - - 127.92
2000SMITHD Don Smith O VO 004250 01309 1/30/98 A 1/30/98 1/30/98 1/30/98 - 13.5 - - - 13.5
Vendor Total - 13.5 - - - 13.5
2002STARRS Stuart Starr O VO 004252 01309 1/30/98 A 1/30/98 1/30/98 1/30/98 - 39 - - - 39
Vendor Total - 39 - - - 39
2004PARKST Steven H.
Park O VO 004253 01319 1/31/98 A 1/31/98 1/31/98 1/31/98 104.69 - - - - 104.69
Vendor Total 104.69 - - - - 104.69
3001BROWNI William
Browning O VO 004267 01209 1/20/98 A 1/20/98 1/20/98 1/20/98 - 296.79 - - - 296.79
Vendor Total - 296.79 - - - 296.79
3001CALLAC Anne
Callace O VO 004271 01219 1/21/98 A 1/21/98 1/21/98 1/21/98 - 53 - - - 53
Vendor Total - 53 - - - 53
3001CRESSW Nancy
Cresswell O VO 004266 01209 1/20/98 A 1/20/98 1/20/98 1/20/98 - 39.97 - - - 39.97
Vendor Total - 39.97 - - - 39.97
3001GLM GLM, Inc. O VO 004269 01219 1/21/98 A 1/21/98 1/21/98 1/21/98 - 105.99 - - - 105.99
Vendor Total - 105.99 - - - 105.99
3001HILZEN Sean Hilzen O VO 004265 01209 1/20/98 A 1/20/98 1/20/98 1/20/98 - 211.99 - - - 211.99
Vendor Total - 211.99 - - - 211.99
3001HOPPRO Robert Hopp O VO 004272 01259 1/25/98 A 1/25/98 1/25/98 1/25/98 - 63.59 - - - 63.59
Vendor Total - 63.59 - - - 63.59
3001KLOSKY Justin
Klosky O VO 004270 01209 1/20/98 A 1/20/98 1/20/98 1/20/98 - 190.79 - - - 190.79
Vendor Total - 190.79 - - - 190.79
3001RUBENS Martin
Rubenstein O VO 004274 01319 1/31/98 A 1/31/98 1/31/98 1/31/98 21.2 - - - - 21.2
Vendor Total 21.2 - - - - 21.2
3001SHOWAH Kathy
Showah O VO 004273 01279 1/27/98 A 1/27/981/27/98 1/27/98 - 84.79 - - - 84.79
Vendor Total - 84.79 - - - 84.79
3001VIOLAN George A.
Violante O VO 004268 01239 1/23/98 A 1/23/98 1/23/98 1/23/98 - 158.99 - - - 158.99
Vendor Total - 158.99 - - - 158.99
3001ZUNIGA Rebecca
Zuniga O VO 004264 01209 1/20/98 A 1/20/98 1/20/98 1/20/98 - 105.99 - - - 105.99
Vendor Total - 105.99 - - - 105.99
3004BELLJO John Bell O VO 004275 01299 1/29/98 A 1/29/98 1/29/98 1/29/98 - 158.99 - - - 158.99
Vendor Total - 158.99 - - - 158.99
3004JACOBS Binoy
Jacobs O VO 004276 01309 1/30/98 A 1/30/98 1/30/98 1/30/98 - 165.34 - - - 165.34
Vendor Total - 165.34 - - - 165.34
3007DELBUO Vincent
Delbuono O VO 004262 01299 1/29/98 A 1/29/98 1/29/98 1/29/98 - 21.19 - - - 21.19
Vendor Total - 21.19 - - - 21.19
3009ALASHE Sheila
Ala O VO 004263 01309 1/30/98 A 1/30/98 1/30/98 1/30/98 - 63.59 - - - 63.59
Vendor Total - 63.59 - - - 63.59
3009POSTPO Post
& Post O VO 004261 01169 1/16/98 A 1/16/98 1/16/98 1/16/98 - 476.97 - - - 476.97
Vendor Total - 476.97 - - - 476.97
5000AACORN A Acorn
Locksmith O VO 004027 980113 1/13/98 A 1/13/98 2/12/98 2/12/98 111.3 - - - - 111.3
O VO 04028 980113 1/13/98 A 1/13/98 2/12/98 2/12/98 79.5 - - - - 79.5
O VO 04029 980113 1/13/98 A 1/13/98 2/12/98 2/12/98 135.79 - - - - 135.79
O VO 04030 980113 1/13/98 A 1/13/98 2/12/98 2/12/98 111.83 - - - - 111.83
O VO 04031 980113 1/13/98 A 1/13/98 2/12/98 2/12/98 79.88 - - - - 79.88
Vendor Total 518.3 - - - - 518.3
</TABLE>
Page 9 of 25
<PAGE> 10
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5000ADVANS Advance
Service Indus. O VO 004172 2271 1/12/98 A 1/12/98 1/12/98 1/12/98 - 187.66 - - - 187.66
Vendor Total - 187.66 - - - 187.66
5000ALMAT F Almat
Forms & Sy Inc. O VO 004236 2094 1/29/98 A 1/29/98 2/28/98 2/28/98 388.93 - - - - 388.93
Vendor Total 388.93 - - - - 388.93
5000AMERIC American
Stock Trail Co. O VO 004315 11125 1/13/98 A 1/13/98 1/13/98 1/13/98 - 322.58 - - - 322.58
Vendor Total - 322.58 - - - 322.58
5000AQUASP Aqua
Springs Water O VO 004228 10221 1/31/98 A 1/31/98 1/31/98 1/31/98 141.24 - - - - 141.24
Vendor Total 141.24 - - - - 141.24
5000BELLMO Bell
South Mobility O VO 004224 95467 1/22/98 A 1/22/98 2/16/98 2/16/98 0.55 - - - - 0.55
O VO 04233 305815 1/28/98 A 1/28/98 2/21/98 2/21/98 0.5 - - - - 0.5
O VO 04234 305815 1/28/98 A 1/28/98 2/21/98 2/21/98 0.72 - - - - 0.72
Vendor Total 1.77 - - - - 1.77
5000BOWNE Bowne
of Atlanta O VO 004223 I98011 1/28/98 A 2/7/98 2/27/98 2/7/98 377.36 - - - - 377.36
Vendor Total 377.36 - - - - 377.36
5000DARLIN Darling
Visual System O VO 004173 00366 1/23/98 A 1/23/98 2/22/98 2/22/98 17.08 - - - - 17.08
O VO 04239 3715 1/30/98 A 3/1/98 3/1/98 22.77 - 0 0 0 22.77
Vendor Total 39.85 - - - - 39.85
5000DEPEND Dependable
Courier O VO 004175 429 1/31/98 A 1/31/98 3/2/98 3/2/98 94.5 - - - - 94.5
O VO 04176 430 1/31/98 A 1/31/98 3/2/98 3/2/98 108 - - - - 108
O VO 04177 431 1/31/98 A 1/31/98 3/2/98 3/2/98 135 - - - - 135
O VO 04178 432 1/31/98 A 1/31/98 3/2/98 3/2/98 45.9 - - - - 45.9
O VO 04179 433 1/31/98 A 1/31/98 3/2/98 3/2/98 48.6 - - - - 48.6
O VO 04180 434 1/31/98 A 1/31/98 3/2/98 3/2/98 86.25 - - - - 86.25
O VO 04181 435 1/31/98 A 1/31/98 3/2/98 3/2/98 236.05 - - - - 236.05
O VO 04199 414 1/31/98 A 1/31/98 3/2/98 3/2/98 27 - - - - 27
O VO 04200 415 1/31/98 A 1/31/98 3/2/98 3/2/98 54 - - - - 54
O VO 04201 417 1/31/98 A 1/31/98 3/2/98 3/2/98 67.5 - - - - 67.5
O VO 04202 420 1/31/98 A 1/31/98 3/2/98 3/2/98 36.45 - - - - 36.45
O VO 04203 422 1/31/98 A 1/31/98 3/2/98 3/2/98 16.2 - - - - 16.2
Vendor Total 955.45 - - - - 955.45
5000FEDEX Federal
Express Co. O VO 004102 44059 1/23/98 A 1/23/98 2/7/98 2/7/98 168 - - - - 168
O VO 04108 121965 1/20/98 A 1/20/98 2/4/98 2/4/98 103.5 - - - - 103.5
O VO 04235 441300 1/30/98 A 1/30/98 2/14/98 2/14/98 59.45 - - - - 59.45
Vendor Total 330.95 - - - - 330.95
5000IRAKEO IRA/KEOGH
Service O VO 004169 Co-20 1/18/98 A 1/18/98 1/28/98 1/28/98 - 52.92 - - - 52.92
Vendor Total - 52.92 - - - 52.92
5000LDDSWO LDDS
Worldcom O VO 004208 17783 1/15/98 A 2/4/98 2/4/98 2/4/98 15 - - - - 15
O VO 04278 179496 1/22/98 A 2/11/98 2/11/98 2/11/98 54.28 - - - - 54.28
O VO 04279 180105 1/26/98 A 2/15/98 2/15/98 2/15/98 96.18 - - - - 96.18
Vendor Total 165.46 - - - - 165.46
5000NEXTEL Nextel O VO 004222 5191 1/26/98 A 1/26/98 2/10/98 2/10/98 6.61 - - - - 6.61
Vendor Total 6.61 - - - - 6.61
5000SOUTHB South
Beach Capital O VO 004312 02049 2/4/98 A 2/4/98 2/4/98 2/4/98 136.56 - - - - 136.56
Vendor Total 136.56 - - - - 136.56
5000TELECH Telecheck O VO 004319 B8032 1/31/98 H 1/31/98 2/19/98 2/19/98 628.06 - - - - 628.06
Vendor Total 628.06 - - - - 628.06
5000UPS United
Parcel Service O VO 004229 60412 1/31/98 A 1/31/98 2/7/98 1/31/98 10 - - - - 10
O VO 04277 000X60 2/7/98 A 2/7/98 2/14/98 2/14/98 662.14 - - - - 662.14
Vendor Total 672.14 - - - - 672.14
5500ALLSE R All
Service Refuse O VO 004092 HB011 1/19/98 A 1/19/98 1/19/98 1/19/98 - 8.63 - - - 8.63
Vendor Total - 8.63 - - - 8.63
5500FPL Florida
Power & Light O VO 004093 56101- 1/21/98 A 3/11/98 3/11/98 3/6/98 645 - - - - 645
O VO 04104 52512-3 1/23/98 A 1/23/98 2/13/98 2/13/9 206.66 - - - - 206.66
O VO 04105 35031-3 1/20/98 A 1/20/98 2/10/98 2/10/9 131.26 - - - - 131.26
O VO 04185 46289-3 1/26/98 A 1/26/98 2/16/98 2/16/9 61.25 - - - - 61.25
Vendor Total 1,044.17 - - - - 1,044.17
5500HOLLYW City
of Hollywood Ulty O VO 004211 80887 1/27/98 A 1/27/98 2/6/98 2/6/98 63.34 - - - - 63.34
Vendor Total 63.34 - - - - 63.34
</TABLE>
Page 10 of 25
<PAGE> 11
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5C000CGI CGI-Ft.
Lauderdale O VO 004282 30627 1/28/98 A 1/28/98 2/12/98 2/12/98 340.1 - - - - 340.1
Vendor Total 340.1 - - - - 340.1
6000SAXONS Saxon
Business System O VO 004231 38599 1/16/98 A 1/16/98 1/26/98 1/26/98 24.22 - - - 24.22
O VO 04232 26257A 1/30/98 A 1/30/98 2/9/98 2/9/98 47.08 - - - - 47.08
Vendor Total 47.08 24.22 - - - 71.3
6500KAHNCA Kahn
Carlin O VO 004257 14787 1/13/98 A 1/13/98 2/9/98 2/9/98 4,666.62 - - - - 4,666.62
Vendor Total 4,666.62 - - - - 4,666.62
7000CELLST CellStar O VO 004010 20019 1/16/98 A 1/16/98 2/15/98 2/15/98 670.5 - - - - 670.5
O VO 04166 201201 1/30/98 A 1/30/98 3/1/98 3/1/98 1,080.38 - - - - 1,080.38
Vendor Total 1,750.88 - - - - 1,750.88
7000DIRECT Direct
Wireless O VO 004164 910 1/27/98 A 1/27/98 2/26/98 2/26/98 82.3 - - - - 82.3
Vendor Total 82.3 - - - - 82.3
7000INGRAM Ingram
Periodicals O VO 004033 25206 1/14/98 A 1/14/98 2/28/98 2/28/98 10.47 - - - - 10.47
O VO 04034 252064 1/14/98 A 1/14/98 2/28/98 2/28/98 10.47 - - - - 10.47
O VO 04118 252684 1/21/98 A 1/21/98 2/28/98 2/28/98 44.18 - - - - 44.18
O VO 04119 252684 1/21/98 A 1/21/98 2/28/98 2/28/98 13.97 - - - - 13.97
O VO 04120 252684 1/21/98 A 1/21/98 2/28/98 2/28/98 44.18 - - - - 44.18
O VO 04121 252684 1/21/98 A 1/21/98 2/28/98 2/28/98 13.97 - - - - 13.97
Vendor Total 137.24 - - - - 137.24
7000ORAELE Ora
Electronics O VO 004127 97332 1/12/98 A 2/11/98 2/11/98 2/11/98 8,587.41 - - - - 8,587.41
Vendor Total 8,587.41 - - - - 8,587.41
7000PRIMEC PrimeCo O VO 004124 19578 1/15/98 A 1/15/98 2/14/98 2/14/98 355.2 - - - - 355.2
O VO 04125 19710 1/15/98 A 1/15/98 2/14/98 2/14/98 2,235.00 - - - - 2,235.00
O VO 04126 20114 1/21/98 A 1/21/98 2/20/98 2/20/98 7,468.75 - - - - 7,468.75
O AD 04168 011998 1/19/98 A 1/19/98 1/19/98 - 570.25 - - - 2,570.25
Vendor Total 10,058.95 570.25 - - - 7,488.70
7000RECOTO Recoton O VO 004011 01710 1/16/98 A 1/16/98 3/17/98 3/17/98 17.6 - - - - 17.6
Vendor Total 17.6 - - - - 17.6
7000SPRINT Sprint PCS O VO 004123 WBE-0 1/21/98 A 1/21/98 2/20/98 2/20/98 2,052.00 - - - - 2,052.00
Vendor Total 2,052.00 - - - - 2,052.00
7200ICANEC ICanect H VO 004183 01319 1/31/98 A 1/31/98 3/2/98 3/2/98 269.34 - - - - 269.34
Vendor Total 269.34 - - - - 269.34
7200INTER N Network
Solutions O VO 004313 42656 1/22/98 A 1/22/98 3/1/98 3/1/98 100 - - - - 100
Vendor Total 100 - - - - 100
7200NATION National
Electrorant O VO 004182 01319 1/31/98 A 1/31/98 1/31/98 1/31/98 367.1 - - - - 367.1
Vendor Total 367.1 - - - - 367.1
7500ARCODI Arco
Distributors O VO 004225 56480 1/28/98 A 1/28/98 1/28/98 1/28/98 - 652.17 - - - 652.17
Vendor Total - 652.17 - - - 652.17
7500TELEDA TeleData
Concept O VO 004311 6408 1/30/98 A 1/30/98 1/30/98 1/30/98 - 4,000.00 - - - 4,000.00
Vendor Total - - - - - 4,000.00
90003COM 3Com Credit
Corp O VO 004059 98481 1/12/98 A 1/12/98 1/12/98 1/12/98 - 2,564.43 - - - 2,564.43
04061 987940 1/12/98 A 1/12/98 1/12/98 1/12/98 - 134.19 - - - 134.19
04063 984814 1/12/98 A 1/12/98 1/12/98 1/12/98 - 155.46 - - - 1,155.46
04065 987975 1/12/98 A 1/12/98 1/12/98 1/12/98 - 119.89 - - - 119.89
04067 998901 1/13/98 A 1/13/98 1/13/98 1/13/98 - 203.31 - - - 203.31
04070 998905 1/13/98 A 1/13/98 1/13/98 1/13/98 - 359.85 - - - 359.85
Vendor Total - 537.13 - - - 4,537.13
9000BAYTE C Bay
Tech Investment O VO 004286 01019 1/1/98 A 1/1/98 1/1/98 1/1/98 - 962.5 - - - 962.5
O VO 04287 013198 1/31/98 1/31/98 1/31/98 1/31/98 2,604.86 - - - - 2,604.86
O AD 04320 013198 1/31/98 1/31/98 1/31/98 3,567.36 - - - - 3,567.36
Vendor Total 962.5 962.5 - - - -
9000CITGRO Sensormatic/
CIT Group O AD 004285 10155 1/18/98 A 1/18/98 1/18/98 - 250 - - - 250
Vendor Total - 250 - - - 250
9500DADECO Dade
County Clerk O VO 004205 41611 1/13/98 A 1/13/98 1/13/98 1/13/98 - 50 - - - 50
Vendor Total - 50 - - - 50
Report Total 33,799.35 757.59 - - - 44,556.94
</TABLE>
Page 11 of 20
<PAGE> 12
ATTACHMENT #3
INVENTORY AND FIXED ASSETS REPORT
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
Reporting Period Beginning January 12, 1998 and Ending January 31, 1998
INVENTORY REPORT
Inventory Balance at Petition Date: $ 2,191,354
==============
Inventory Reconciliation:
Inventory Balance at Beginning of Month (Period) $ 2,191,354
Inventory Purchased During Month (Period) 43,326
Inventory Used or Sold: (78,806)
Less Inventory adjustments to Physical
Inventory at 1-31-98 (160,604)
--------------
Inventory On-Hand at End of Month(Period) $ 1,995,270
==============
Method of Costing: ----------------------- Last Cost
-----------
FIXED ASSET REPORT
- -------------------------------------------------------------------------------
Fixed Assets Fair Market Value at Petition Date: $ 2,038,164 NBV
(includes Property, Plant and Equipment)
Brief Description (First Report Only): Fixed Assets include Computer
Equipment/Software, Office Equipment, Fixtures, and Leasehold Improvements. A
detailed list was provided as of January 12, 1998 petition filing date.
Fixed Assets Reconciliation:
Fixed Asset Book Value at Beginning of Month (Period): $ 2,038,164
Less: Depreciation Expense for Period: (28,637)
Plus: New Purchases/Additions: -
Less: Assets written off due to store closings (see
note below) (558,950)
--------------
Ending Month(Period) Balance: $ 1,450,577
==============
Brief Description of Fixed Assets Purchased or Disposed of During the Reporting
Period: Assets written off due to store closings included the net book value
of computer equipment, office equipment, fixtures, and leasehold improvements
when these assets were abandoned or taken out of service. Some assets were
sold in February and any proceeds will be included in the February report.
Page 12 of 25
<PAGE> 13
ATTACHMENT #4
MONTHLY BANK ACCOUNT RECONCILIATION
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
Reporting Period Beginning January 12, 1998 and Ending January 31, 1998
Separate sheet is required for each bank account, including all savings and
investment accounts (I.e., certificates of deposits, money market accounts,
stocks and bonds, etc.)
NAME OF BANK: First Union National Bank BRANCH: Commercial Banking Broward
ACCOUNT NAME: 2Connect Express, Inc. DIP Operating Account
ACCOUNT NUMBER: 2090002563870
PURPOSE OF ACCOUNT: Post Petition Operating Account
Beginning Balance $ -
Total of Deposits Made (see note below) 567,515.43
Total Amount of Checks Written (see
note below) 326,109.74
Service Charges -
---------------
Closing Balance $ 241,405.69
===============
Number of 1st Check Written This Period: 012290
Number of Last Check Written This Period: 012356
---------
Total Number of Checks Written or voided This Period: 66
=========
Total Number of Checks issued This Period: 59
=========
Note - Deposits and Checks include daily "Sweep" transfers from store depository
sub-accounts (zero balance accounts) to concentration account.
INVESTMENT ACCOUNTS
Type of Negotiable Face Purchase Date of
Instrument Value Price Purchase
- ------------------ ------- -------- --------
None
Page 13 of 25
<PAGE> 14
ATTACHMENT #4
MONTHLY BANK ACCOUNT RECONCILIATION
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
Reporting Period Beginning January 12, 1998 and Ending January 31, 1998
Separate sheet is required for each bank account, including all savings and
investment accounts (I.e., certificates of deposits, money market accounts,
stocks and bonds, etc.)
NAME OF BANK: First Union National Bank BRANCH: Commercial Banking Broward
ACCOUNT NAME: 2Connect Express, Inc. Operating Account
ACCOUNT NUMBER: 2090002373633
PURPOSE OF ACCOUNT: Pre Petition Operating Account
<TABLE>
<CAPTION>
<S> <C> <C>
Beginning Balance 173,484.50
Total of Deposits Made 70,805.04
Total Amount of Checks Written (269,799.28) See Note regarding bank activity
Service Charges (1,165.01)
Closing Balance (26,674.75) Represents outstanding checks to be voided
and added to vendor liabilities in February.
</TABLE>
Note - Account activity was due to automatic transfers from Zero Balance
accounts used for daily store sales deposits and for funding payroll
during the period from 1-12 to 1-20, at which time the bank finally
implemented our instructions to close the accounts and use the new post
petition accounts.
Number of 1st Check Written This Period: None
Number of Last Check Written This Period: None
Total Number of Checks Written This Period: None
INVESTMENT ACCOUNTS
Type of Negotiable Face Purchase Date of
Instrument Value Price Purchase
- ------------------ ----- -------- --------
None
Page 14 of 25
<PAGE> 15
ATTACHMENT #4
MONTHLY BANK ACCOUNT RECONCILIATION
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
Reporting Period Beginning January 12, 1998 and Ending January 31, 1998
Separate sheet is required for each bank account, including all savings and
investment accounts (I.e., certificates of deposits, money market accounts,
stocks and bonds, etc.)
NAME OF BANK: First Union National Bank BRANCH: Commercial Banking Broward
ACCOUNT NAME: 2Connect Express, Inc. DIP Payroll Account
ACCOUNT NUMBER: 2090002563883
PURPOSE OF ACCOUNT: Post Petition Payroll Account
<TABLE>
<CAPTION>
<S> <C> <C>
Beginning Balance -
Total of Deposits Made 39,858.76
Total Amount of Checks Written (42,623.34)
Service Charges -
-----------
Closing Balance (2,764.58) Since this is a Zero Balance account, the
=========== ending negative balance represents
outstanding checks.
</TABLE>
Number of 1st Check Written This Period: 1519
Number of Last Check Written This Period: 1588
----
Total Number of Checks Written This Period: 69
====
INVESTMENT ACCOUNTS
Type of Negotiable Face Purchase Date of
Instrument Value Price Purchase
- ------------------- ------ -------- ---------
None
Page 15 of 25
<PAGE> 16
ATTACHMENT #4
MONTHLY BANK ACCOUNT RECONCILIATION
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
Reporting Period Beginning January 12, 1998 and Ending January 31, 1998
Separate sheet is required for each bank account, including all savings and
investment accounts (I.e., certificates of deposits, money market accounts,
stocks and bonds, etc.)
NAME OF BANK: First Union National Bank BRANCH: Commercial Banking Broward
ACCOUNT NAME: 2Connect Express, Inc. Payroll Account
ACCOUNT NUMBER: 2090002373646
PURPOSE OF ACCOUNT: Pre Petition Payroll Account
<TABLE>
<CAPTION>
<S> <C> <C>
Beginning Balance (66,770.02)
Total of Deposits Made 59,292.02
Total Amount of Checks Written 4,855.45 Represents 3 checks from pre-petition being voided
Service Charges - and a tax refund due from ADP.
-----------
Closing Balance (2,622.55) Represents outstanding checks to be voided
=========== and added to employee creditor liabilities in February.
</TABLE>
Number of 1st Check Written This Period: None
Number of Last Check Written This Period: None
Total Number of Checks Written This Period: None
INVESTMENT ACCOUNTS
Type of Negotiable Face Purchase Date of
Instrument Value Price Purchase
- ------------------- ------ -------- --------
None
Page 16 of 25
<PAGE> 17
ATTACHMENT #5
CHECK REGISTER
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
Reporting Period Beginning: January 12, 1998 and Ending: January 31, 1998
Name of Bank: First Union National Bank Branch: Commercial Banking Broward
Account Name: 2Connect Express, Inc. Operating Account
Account Number: 2090002373633
Purpose of Account: Primary Operating Account
Account for all check numbers, including voided, lost, stopped payment, etc.
<TABLE>
<CAPTION>
Cumulative
Date Ck # Payee Purpose Amount Amount
---- ---- ----- ------- ------ ----------
<S> <C> <C> <C> <C> <C>
1/12/98 011954 Paul Simonson Void Check (1.82) (1.82)
1/13/98 Debit AA Service Charge Bank Charges 1,165.01 1,163.19
1/13/98 Debit Leon Katz Bank Correction 34,376.00 35,539.19
1/22/98 Debit Telecheck Credit Card Charges 2,680.02 38,219.21
Total 38,219.21
</TABLE>
Page 17 of 25
<PAGE> 18
ATTACHMENT #5
CHECK REGISTER
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
Reporting Period Beginning: January 12, 1998 and Ending: January 31, 1998
Name of Bank: First Union National Bank Branch: Commercial Banking Broward
Account Name: 2Connect Express, Inc. Payroll Account
Account Number: 2090002373646
Purpose of Account: Payroll Account
Account for all check numbers, including voided, lost, stopped payment, etc.
<TABLE>
<CAPTION>
Cumulative
Date Check# Payee Purpose Amount Amount
---- ------ ----- ------- ------ -----------
<S> <C> <C> <C> <C> <C>
1/23/98 1448 Employee Payroll Void Checks (397.03) (397.03)
1/23/98 1469 Employee Payroll Void Checks (100.46) (497.49)
1/23/98 1424 Employee Payroll Void Checks (444.00) (941.49)
1/12/98 Deposit ADP Taxes Tax Refund (3,913.96) (4,855.45)
Total (4,855.45)
</TABLE>
Page 18 of 25
<PAGE> 19
ATTACHMENT #5
CHECK REGISTER
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
Reporting Period Beginning: January 12, 1998 and Ending: January 31, 1998
Name of Bank: First Union National Bank Branch: Commercial Banking Broward
Account Name: 2Connect Express, Inc. DIP Operating Account
Account Number: 2090002563870
Purpose of Account: Primary Operating Account
Account for all check numbers, including voided, lost, stopped payment, etc.
<TABLE>
<CAPTION>
Cumulative
Date Check# Payee Purpose Amount Amount
---- ------ ----- ------- ------- -----------
<S> <C> <C> <C> <C> <C>
1/20/98 012290 Cash-2Connect Gift Certificate 1,400.00 1,400.00
1/21/98 012291 Roy Fuller Cellular Install 80.00 1,480.00
1/26/98 012300 0006STORE0 Petty Cash -- 1,480.00
1/26/98 012301 0008STORE0 Petty Cash -- 1,480.00
1/26/98 012302 0011STORE0 Petty Cash -- 1,480.00
1/26/98 012303 Coral Square Mall Petty Cash 35.58 1,515.58
1/26/98 012304 Phillip Appleton Refund 1,515.58
1/26/98 012305 Stacy Braun Refund 360.38 1,875.96
1/26/98 012306 James Connally Refund 180.19 2,056.15
1/26/98 012307 Marie Gagnon Refund 519.38 2,575.53
1/26/98 012308 Mohamed Khan Refund 158.99 2,734.52
1/26/98 012309 Maria Mandaro Refund 105.99 2,840.51
1/26/98 012310 Pauline Romano Refund 211.99 3,052.50
1/26/98 012311 Randal H. Silbiger Refund 74.19 3,126.69
1/26/98 012312 Felipe Sanchez Refund 11.66 3,138.35
1/26/98 012313 Malcolm Martin Refund 63.89 3,202.24
1/26/98 012314 Dinga Todd Refund 296.78 3,499.02
1/26/98 012315 Peter Petinakis Refund 137.79 3,636.81
1/26/98 012316 BellSouth Mobility Customer Refund 189.74 3,826.55
1/26/98 012317 Primeco Customer Refund 282.50 4,109.05
1/26/98 012318 PR Newswire, Inc. News Releases 70.00 4,179.05
1/26/98 012319 FAISASSOIC Void - 4,179.05
1/26/98 012320 SIMOPAUL Void - 4,179.05
1/26/98 012321 BellSouth Mobility Product 211.00 4,390.05
1/28/98 Debit Primeco Product 17,550.00 21,940.05
1/28/98 Debit Cellstar Product 2,500.00 24,440.05
1/29/98 012322 Chuck Ainsworth Expenses 264.25 24,704.30
1/29/98 012323 Richard Dobrinsky Expenses 73.75 24,778.05
1/29/98 012324 Lori Falk Expenses 124.06 24,902.11
1/29/98 012325 Marc Fishman Expenses 617.46 25,519.57
1/29/98 012326 Billy Fowler Expenses 1,828.86 27,348.43
1/29/98 012327 Jason Hersh Expenses 149.55 27,497.98
1/29/98 012328 Thomas H. Hicks Expenses 1,449.28 28,947.26
1/29/98 012329 Kevin Killoran Expenses 130.26 29,077.52
1/29/98 012330 Matthew A. Kinsey Expenses 254.49 29,332.01
1/29/98 012331 Paul Simonson Expenses 160.81 29,492.82
1/29/98 012332 Steven L. Epstein Expenses 55.55 29,548.37
1/29/98 012333 Jillian Whitter Expenses 27.00 29,575.37
1/29/98 012334 Lucila Lugo Refund 234.29 29,809.66
1/29/98 012335 Miguel Pastrana Expenses 27.00 29,836.66
</TABLE>
Page 19 of 25
<PAGE> 20
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
1/29/98 012336 Stuart Starr Expenses 24.00 29,860.66
1/29/98 012337 Kerin Killoran Expenses 99.10 29,959.76
1/29/98 012338 Todd Dinga Refund 137.79 30,097.55
1/29/98 012339 Blake Nichols Refund 211.99 30,309.54
1/29/98 012340 Dadeland Station Assoc. Ltd. Rent 2,512.12 32,821.66
1/29/98 012341 Columbia BBB/Westchester Rent 634.98 33,456.64
1/29/98 012342 Spiward, Inc. Rent 3,129.77 36,586.41
1/29/98 012343 Airpark Plaza, Ltd. Rent 491.13 37,077.54
1/29/98 012344 Town Center Cobb Rent 882.39 37,959.93
1/29/98 012345 Gateyway FL. Properties Rent 4,308.40 42,268.33
1/29/98 012346 Town Square Association Rent 556.98 42,825.31
1/29/98 012347 Tri-County Plaza Assoc. Ltd. Rent 3,967.74 46,793.05
1/29/98 012348 Michael Swerdlow Companies Rent 641.10 47,434.15
1/29/98 012349 PR Newswire, Inc. News Releases 77.00 47,504.15
1/29/98 012350 Vision Computers Software 340.00 47,844.15
1/29/98 012351 Washington Inventory Service Inventory Count 1,500.00 49,344.15
1/29/98 012352 Coral Springs Improvement Dist Utilities 1.35 49,345.50
1/29/98 012353 Florida Power & Light Utilities 165.92 49,511.42
1/29/98 012354 Sun Belt Technologies Supplies 206.70 49,718.12
1/29/98 012355 Coral Springs Printing Supplies 11.66 49,729.78
1/30/98 012356 South Florida Business Journal Advertising 350.00 50,079.78
50,079.78
</TABLE>
Page 20 of 25
<PAGE> 21
ATTACHMENT #5
CHECK REGISTER
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
Reporting Period Beginning: January 12, 1998 and Ending: January 31, 1998
Name of Bank: First Union National Bank Branch: Commercial Banking Broward
Account Name: 2Connect Express, Inc. DIP Payroll Account
Account Number: 2090002563883
Purpose of Account: Payroll Account
Account for all check numbers, including voided, lost, stopped payment, etc.
<TABLE>
<CAPTION>
Cumulative
Date Check# Payee Purpose Amount Amount
---- ------ ----- ------- ------- -----------
<S> <C> <C> <C> <C> <C>
1/23/98 Debit PPE 1/18/98 ADP Fees Payroll Fees 84.43 84.43
1/23/98 Debit PPE 1/18/98 ADP Taxes Payroll Taxes 12,009.29 12,093.72
1/23/98 1519 Fishman, Marc Net Pay 1,224.88 13,318.60
1/23/98 1520 Hicks, Thomas Net Pay 2,187.97 15,506.57
1/23/98 1521 Jones, Allan Net Pay 397.81 15,904.38
1/23/98 1522 Peck, Adam Net Pay 486.65 16,391.03
1/23/98 1523 Falk, Lori Net Pay 279.12 16,670.15
1/23/98 1524 Killoran, Kevin Net Pay 815.39 17,485.54
1/23/98 1525 Wainwright, Illeana Net Pay 1,123.37 18,608.91
1/23/98 1526 Ainsworth, Charles Net Pay 875.56 19,484.47
1/23/98 1527 Fowler, Billy Net Pay 1,291.42 20,775.89
1/23/98 1528 Hersh, Jason Net Pay 312.27 21,088.16
1/23/98 1529 Koegler, Lizelie Net Pay 361.44 21,449.60
1/23/98 1530 Woods, Robert Net Pay 641.90 22,091.50
1/23/98 1531 Bolden, Maria Net Pay 374.95 22,466.45
1/23/98 1532 Dobrinsky, Richard Net Pay 829.93 23,296.38
1/23/98 1533 Kinsey, Jeanine Net Pay 371.64 23,668.02
1/23/98 1534 Simonson, Paul Net Pay 686.52 24,354.54
1/23/98 1535 Hernandez, Zara Net Pay 324.75 24,679.29
1/23/98 1536 Kinsey, Matthew Net Pay 615.89 25,295.18
1/23/98 1537 Silverman, Daniel Net Pay 640.05 25,935.23
1/23/98 1538 Smith, Donald Net Pay 831.94 26,767.17
1/23/98 1539 Lively, Marie Net Pay 117.72 26,884.89
1/23/98 1540 Cohen, George Net Pay 368.32 27,253.21
1/23/98 1541 Epstein, Steven Net Pay 591.28 27,844.49
1/23/98 1542 Cowan, Robert Net Pay 147.13 27,991.62
1/23/98 1543 Patierno, Joe Net Pay 266.70 28,258.32
1/23/98 1544 Pettineo, John Net Pay 282.16 28,540.48
1/23/98 1545 Whitten, Jillian Net Pay 281.08 28,821.56
1/23/98 1546 Ruggiero, Lisette Net Pay 275.69 29,097.25
</TABLE>
Page 21 of 25
<PAGE> 22
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
1/23/98 1547 Starr, Stuart Net Pay 493.35 29,590.60
1/23/98 1548 Brito, Juan Net Pay 129.66 29,720.26
1/23/98 1549 Pastrana, Miguel Net Pay 240.10 29,960.36
1/23/98 1550 Pavetti, Carlos Net Pay 116.23 30,076.59
1/23/98 1551 Rutter, Kenneth Net Pay 844.77 30,921.36
1/23/98 1552 Carpenter, Jerome Net Pay 512.97 31,434.33
1/23/98 1553 Hines, Giovanni Net Pay 268.23 31,702.56
1/23/98 1554 Acosta, Miguel Net Pay 27.71 31,730.27
1/23/98 1555 Rodriguez, Isvel Net Pay 104.77 31,835.04
1/23/98 1556 Park, Steven Net Pay 570.39 32,405.43
1/23/98 1557 Sordelet, Claude Net Pay 331.78 32,737.21
1/23/98 1558 Bruno, Robert Net Pay 178.07 32,915.28
1/23/98 1559 Killoran, Kerin Net Pay 258.17 33,173.45
1/23/98 1560 Yacobozzi, Anthony Net Pay 259.31 33,432.76
1/23/98 1561 Cullen, Jennifer Net Pay 416.67 33,849.43
1/23/98 1562 Gonzalez, Carlos Net Pay 372.19 34,221.62
1/23/98 1563 Lindsay, Gregg Net Pay 366.45 34,588.07
1/23/98 1564 Cattani, Almo Net Pay 327.38 34,915.45
1/23/98 1565 Leon, Ismail Net Pay 187.85 35,103.30
1/23/98 1566 Markowitz, Kevin Net Pay 48.02 35,151.32
1/23/98 1567 Morales, Juan Net Pay 336.73 35,488.05
1/23/98 1568 Alessandri, Patrick Net Pay 157.78 35,645.83
1/23/98 1569 Farmington, Aaron Net Pay 253.77 35,899.60
1/23/98 1570 Grandy, John Net Pay 655.62 36,555.22
1/23/98 1571 Miller, Larry Net Pay 439.71 36,994.93
1/23/98 1572 Fenton Boykin, Wanda Net Pay 116.81 37,111.74
1/23/98 1573 Halloway, Chadrick Net Pay 96.14 37,207.88
1/23/98 1574 Lossia, Karen Net Pay 434.98 37,642.86
1/23/98 1575 Tovar, Anthony Net Pay 628.04 38,270.90
1/23/98 1576 Gardner, William Net Pay 234.96 38,505.86
1/23/98 1577 Manazanera, Nadine Net Pay 95.20 38,601.06
1/23/98 1578 Sicuro, Alejandro Net Pay 275.33 38,876.39
1/23/98 1579 Fogelman, Steve Net Pay 546.68 39,423.07
1/23/98 1580 Bryan, Melanie Net Pay 528.99 39,952.06
1/23/98 1581 Gomez, Gabriel Net Pay 334.89 40,286.95
1/23/98 1582 Castellanos, Lena Net Pay 271.60 40,558.55
1/23/98 1583 Grundleger, Brian Net Pay 353.27 40,911.82
1/23/98 1584 Brennan, Michael Net Pay 383.74 41,295.56
1/23/98 1585 Rothman, Nathan Net Pay 564.09 41,859.65
1/23/98 1586 Avarez, Rubin Net Pay 231.15 42,090.80
1/23/98 1587 Jackson, Dennis Net Pay 0.33 42,091.13
1/23/98 1588 Silverman, Patricia Net Pay 532.21 42,623.34
Total 42,623.34
</TABLE>
Page 22 of 25
<PAGE> 23
ATTACHMENT #6
MONTHLY TAX REPORT
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
Reporting Period Beginning: January 12, 1998 and Ending: January 31, 1998
TAXES PAID DURING THE MONTH(PERIOD)
Report all post-petition taxes paid directly or deposited into the tax account.
<TABLE>
<CAPTION>
Date Bank Description Amount
---- ---- ----------- ------
<S> <C> <C> <C>
1/12/98 First Union - IRS Payroll Tax Refund of Prior Year Ove $ (3,913.96)
1/23/98 First Union - IRS Payroll Tax Deposit for PR paid 12,009.29
---------------
$ 8,095.33
===============
</TABLE>
TAXES OWED AND DUE
Report all unpaid post-petition taxes including Federal and State withholding
FICA, State sales tax, property tax, unemployment tax, and State workmen's
compensation. Date last tax rSee Above
<TABLE>
<CAPTION>
Name of Taxing Date Pmt
Authority Due Description Amount
--------------- -------- ----------- ------
<S> <C> <C> <C>
IRS and Fla Dept of Rev 2/11/98 PR taxes to be deposited by ADP for 1/31 PR paid 2/06/98 $20,401.70
Florida Department of Rev 2/20/98 Consolidated Sales Tax Return for January, 1998 $10,815.14
</TABLE>
Page 23 of 25
<PAGE> 24
ATTACHMENT #7
SUMMARY OF OFFICER OR OWNER COMPENSATION
SUMMARY OF PERSONNEL AND INSURANCE COVERAGES
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
Reporting Period Beginning: January 12, 1998 and Ending: January 31, 1998
Report all compensation received during the period. Do not include reimbursement
for expenses incurred for which you have receipts.
<TABLE>
<CAPTION>
Amount
Officer or Owner Name Title Paid
- --------------------- ----- ------
<S> <C> <C>
Thomas H. Hicks CEO COO and CFO 2,884.62
Billy Fowler VP Operations 1,875.00
Kevin Killoran Secretary 1,153.85
Marc Fishman Director, Merchandising 1,846.15
</TABLE>
PERSONNEL REPORT
<TABLE>
<CAPTION>
Full Time Part Time Total
--------- --------- -----
<S> <C> <C> <C>
Number of Employees at Beginning of Period 64 15 79
Number Hired during Period 2 - 2
Number Terminated or Resigned during Period 22 5 27
--- --- ---
Number of Employees on payroll at end of Period 44 10 54
=== === ===
</TABLE>
CONFIRMATION OF INSURANCE
List all policies of insurance in effect, including but not limited to worker's
compensation, liability, fire, theft, comprehensive, vehicle, health and life.
<TABLE>
<CAPTION>
Agent & Policy Type of Expiry Premium
Carrier Phone # Number Coverage Date Due Date
- ------- ------- ------ -------- ------- --------
<S> <C> <C> <C> <C> <C>
Agricultural Excess & Kahn-Carlin & Company, Inc. NSP2108136 Directors & Officers Liability 5/9/98 Paid
Surplus Roy Fabry
Telephone (954) 767-6066
Reliance Insurance
Company Kahn-Carlin & Company, Inc. QB8615829 Commercial Application, 10/9/98 Monthly
Property, General Liability,
Business Auto, Garage & Dealers,
Crime, Umbrella
Kemper-American
Motorists Ins. Kahn-Carlin & Company, Inc. 3BG01594400 Workers Compensation 10/9/98 Monthly
CAN Kahn-Carlin & Company, Inc. 0000685C Employment Related Prac 9/11/98 Paid
Humana, Inc. Humana, Inc. Group #133739 Employee Health and Lif 9/30/98 Monthly
Stacey Granger
Phone (800) 442-5555
</TABLE>
Page 24 of 25
<PAGE> 25
ATTACHMENT #8
SIGNIFICANT DEVELOPMENTS DURING REPORTING PERIOD
1. Closed 5 stored and rejected store leases.
2. Rejected Hialiah store lease. This store was slated to open in March, 1998.
3. Reduced Corporate Office headcount.
4. Conducted physical inventory in all locations.
5. Notified all creditors and shareholders of Chapter 11 filings.
6. Began process to file motions to reject leases, executory contracts, and
employment agreements.
7. Developed Business Plan for purposes of soliciting new investment pursuant
to a plan of reorganization.
8. Identified merchandise categories to exit and discontinue products. Began
soliciting bids to sell this inventory.
9. Began in-store normal year-end clearance sales of discontinued products.
10. Negotiated a debtor-in-possession credit facility with Bay Tech Investments,
Inc., and began preparation of a motion for its approval.
11. Consolidated closed stores inventory in a single location and sorted by
"item number" in preparation for sales to third parties or shipment to
operating stores for retail selling.
We anticipate filing a Plan of Reorganization and
Disclosure Statement on or before:
Exclusivity period ends May 12, 1998.
<PAGE> 1
Exhibit 99.2
FOR IMMEDIATE RELEASE
For Further Information Contact:
Mr. Thomas H. Hicks
President & Chief Executive Officer
Phone (954) 797-7960
Fax (954) 797-8636
2Connect Reports Debtor-In-Possession Credit Facility
PLANTATION, FL (March 2, 1998) - 2Connect Express, Inc. (OTC Bulletin Board:
CNTCU) today announced that it has obtained a $500,000 debtor-in-possession
credit facility, for working capital purposes, from BayTech Investments, Inc.,
its previous revolving credit lender. This facility, which currently has
$225,000 in unused availability, expires on March 28, 1998, but, may be extended
with the lender's approval. The facility is intended to provide bridge financing
until the Company's excess inventory is liquidated.
2Connect's Chief Executive Officer, Thomas H. Hicks, commented, "the Company is
pleased with the confidence demonstrated by our lender regarding the
restructuring initiatives. We have also received positive response from certain
landlords and creditors. The Company is aggressively developing financing
alternatives which, if successful, could enable the Company to emerge from
bankruptcy and begin to prosper and grow."
2Connect Express, Inc. is a specialty retailer and direct, consultative marketer
of communications related products and services under the name "2Connect,
America's Total Communications Store." 2Connect is the first independent
retailer and direct sales organization offering one-stop shopping for
communications related products and services to the individual and business
community. The Company currently operates five stores in South Florida.
<PAGE> 1
Exhibit 99.3
FOR IMMEDIATE RELEASE
For Further Information Contact:
Mr. Thomas H. Hicks
President & Chief Executive Officer
Phone (954) 797-7960
Fax (954) 797-8636
2Connect Reports Acquisition Letter of Intent
PLANTATION, FL (March 4, 1998) - 2Connect Express, Inc. (OTC Bulletin Board:
CNTCU) today announced that it has executed a Letter of Intent whereby Bobby
Allison Cellular Systems of Florida, Inc., would merge with and into 2Connect.
Bobby Allison Cellular is a Largo, FL headquartered, privately held, cellular
and paging mall based specialty retailer, currently operating 12 stores in
Florida. The proposed merger is contingent upon, among other things, the
completion of a merger agreement between the two parties, not later than March
11, 1998. 2Connect Express, Inc. filed a voluntary petition for protection under
Chapter 11 of the United States Bankruptcy Code on January 12, 1998 in order to
protect the interests of its creditors and shareholders. The proposed merger
would, therefore, be incorporated in a Plan of Reorganization to be filed with
the Bankruptcy Court, and be subject to confirmation of that Plan by the Court.
2Connect has, following the Chapter 11 filing, closed its' five poorest
performing stores, begun liquidating excess inventory and reduced overhead.
Sterne, Agee & Leach, Inc. a Birmingham, Alabama based investment banking firm,
is acting as an advisor to 2Connect for the proposed merger and will further
advise 2Connect regarding the future financing of the merged entity. The merger
is proposed to take place immediately following 2Connect's emergence from the
bankruptcy proceeding.
2Connect's Chief Executive Officer, Thomas H. Hicks, commented, "the Company's
Board of Directors, management and the principals of both Bobby Allison Cellular
and Sterne Agee & Leach have worked diligently over the past several weeks to
construct a transaction that can be mutually beneficial to the creditors and
shareholders of 2Connect. Upon combining the operations of Bobby Allison and
2Connect, it is expected that the business will employ a mall based real estate
strategy, will focus on the core wireless, paging and telephone categories and
will be led by the current principals of Bobby Allison Cellular. The proposed
merger with Bobby Allison Cellular, if completed, will provide quality real
estate, management, and critical mass to give 2Connect the opportunity to
prosper and grow. The Company has begun a search for attractive mall locations
in Florida and the southeastern United States."
2Connect Express, Inc. is a specialty retailer and direct, consultative marketer
of communications related products and services under the name "2Connect,
America's Total Communications Store". 2Connect is the first independent
retailer and direct sales provider offering one stop shopping for communications
related products and services to the individual and business community. The
Company currently operates five stores in South Florida.
