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Previous: HERTZ TECHNOLOGY GROUP INC, 10QSB, 1998-07-15 |
Next: TURBODYNE TECHNOLGIES INC, 20-F, 1998-07-15 |
<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) July 15, 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.)
3500 Gateway Drive, Suite 101, Pompano Beach, FL 33069
- ------------------------------------------------ -----
(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 July 15, 1998, 2Connect Express, Inc. filed with the United States Bankruptcy
Court the Debtor's Monthly Financial Report (Business) for the period from May
31, 1998 to July 4, 1998. A copy of this report is filed as Exhibit A hereto.
On June 16, 1998, the Bankruptcy Court approved the Debtor's amended Disclosure
Statement.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) EXHIBITS
Exhibit 7A. Debtor's Monthly Financial Report (Business) For The
Period From May 31, 1998 to July 4, 1998, filed with
the United States Bankruptcy Court.
<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: July 15, 1998 /s/ THOMAS H. HICKS
------------------------------------
Thomas H. Hicks, President and Chief
Executive Officer (Interim)
<PAGE> 4
EXHIBIT INDEX
Exhibit Number Description Sequentially Numbered Page
- -------------- ----------- --------------------------
7.A Debtor's Monthly Financial Report 5
for the period from May 31, 1998
to July 4, 1998
<PAGE> 1
Exhibit A
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF FLORIDA
FT LAUDERDALE DIVISION
IN RE: I CASE NUMBER: 98-20169-BKC-RBR
I
I JUDGE: Raymond B. Ray
DEBTOR. I CHAPTER 11
DEBTOR'S MONTHLY FINANCIAL REPORT (BUSINESS)
FOR THE PERIOD
FROM May 31, 1998 TO July 4, 1998 (7-4-98 is fiscal month end per books)
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
3500 Gateway Drive 201 S. Biscayne Blvd.
Suite 101 2400 Miami Center
Pompano Beach, FL 33069 Miami, FL 33131
(954) 971-3555 (305) 372-2400
1 of 19
<PAGE> 2
MONTHLY FINANCIAL REPORT FOR BUSINESS
For the Period Beginning May 31, 1998 and Ending July 4, 1998
(fiscal month per books)
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
------------- ----------------
<S> <C> <C>
1. Cash at Beginning of Period $ 676,191.51 $ 106,714.48
============== ================
2. Receipts:
A. Cash and Credit Card Sales 15,339.75 1,018,822.29
Less: Cash and Credit Card Refunds -- (1,333.83)
Net Cash and Credit Card Sales 15,339.75 1,017,488.46
============== ================
B. Collection in Post-petition A/R 100,262.46 303,005.85
C. Collection on Pre-petition A/R 10,320.69 296,132.52
D. Other Receipts (Schedule 2A) 6,513.39 77,555.18
E. Deposits From Account Sweeps 460,079.79 2,909,945.71
F. Less Disbursement Sweeps (460,079.79) (2,909,103.12)
G. Auction sales-held in bankurptcy atty trust account 6,880.70 344,956.33
-------------- ----------------
3. Total Receipts 139,316.99 2,039,980.93
============== ================
4. Total Cash Available for Operations(1+3) 815,508.50 2,146,695.41
-------------- ----------------
5. Disbursements:
A. U.S. Trustee Quarterly Fees -- 5,000.00
B. Net Payroll 30,390.11 391,007.24
C. Payroll Taxes Paid 9,457.14 145,104.62
D. Sales and Use Taxes 886.96 46,868.32
E. Other Taxes -- --
F. Rent 7,376.31 145,675.52
G. Other Leases (attachment 3) -- 33,302.96
H. Telephone 1,214.27 32,071.57
I. Utilities 421.18 15,715.76
J. Travel and Entertainment -- 29,030.99
K. Vehicle Expenses -- --
L. Office Supplies -- 5,320.61
M. Advertising -- 22,796.89
N. Insurance (attachment 7) 4,635.46 41,962.52
O. Purchases of Fixed Assets -- --
P. Purchases of Inventory 10,580.84 112,795.98
Q. Manufacturing Supplies -- --
R. Repairs and Maintenance -- 1,604.19
S. Payments to Secured Creditors -- 281,499.96
T. Other Operating Expenses(Schedule 2B) 5,937.23 92,329.28
============== ================
6. Total Cash Disbursements 70,899.50 1,402,086.41
============== ================
7. Ending Cash Balance (4-6) $ 744,609.00 $ 744,609.00
============== ================
</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 13th day of July, 1998. Signed: /s/ Thomas H. Hicks
----------------------------------------
Thomas H. Hicks, CEO, CFO
Page 2 of 19
<PAGE> 3
Schedule 2A
Monthly Financial Report for Business
For the Period Beginning May 31, 1998 and Ending July 4, 1998
(fiscal month per books)
Other Receipts Detail
<TABLE>
<CAPTION>
Account Date Check # Received From Purpose Deposit
- ------- ---- ------- ------------- ------- -------
<S> <C> <C> <C> <C> <C>
op 6/1/98 Deposit First Union Interest Interest $ 140.66
op 6/2/98 Deposit First Union Interest Interest 46.31
op 6/3/98 Deposit First Union Interest Interest 43.86
op 6/4/98 Deposit First Union Interest Interest 43.50
op 6/5/98 Deposit First Union Interest Interest 42.85
op 6/5/98 Deposit Florida Power & Light Utility Deposit Refund 2,006.90
op 6/5/98 Deposit Cobra - Cullen Cobra 105.03
op 6/8/98 Deposit First Union Interest Interest 124.67
op 6/9/98 Deposit First Union Interest Interest 44.88
op 6/10/98 Deposit First Union Interest Interest 43.62
op 6/11/98 Deposit First Union Interest Interest 44.50
op 6/11/98 Deposit Cobra - Pacey Cobra 210.29
op 6/11/98 Deposit Cobra - Hersh Cobra 600.00
op 6/12/98 Deposit First Union Interest Interest 44.00
op 6/12/98 Deposit Cobra - Epstein Cobra 677.92
op 6/15/98 Deposit First Union Interest Interest 132.71
op 6/16/98 Deposit First Union Interest Interest 44.08
op 6/16/98 Deposit Cobra - Hernandez Cobra 315.09
op 6/17/98 Deposit First Union Interest Interest 43.23
op 6/18/98 Deposit First Union Interest Interest 43.23
op 6/19/98 Deposit First Union Interest Interest 42.75
op 6/19/98 Deposit Store 1 Petty Cash Petty Cash 302.79
op 6/19/98 Deposit Telecheck Refund Telecheck Refund 159.00
op 6/22/98 Deposit First Union Interest Interest 126.47
op 6/23/98 Deposit First Union Interest Interest 42.88
op 6/24/98 Deposit First Union Interest Interest 41.20
op 6/25/98 Deposit First Union Interest Interest 41.43
op 6/25/98 Deposit Go-Neo Cashiers Check Inventory 133.00
op 6/26/98 Deposit First Union Interest Interest 43.66
op 6/29/98 Deposit First Union Interest Interest 126.64
op 6/30/98 Deposit First Union Interest Interest 51.06
op 6/30/98 Deposit Cobra Cobra 444.03
op 7/1/98 Deposit First Union Interest Interest 51.87
op 7/2/98 Deposit First Union Interest Interest 56.81
op 7/3/98 Deposit First Union Interest Interest 52.47
----------
$ 6,513.39
==========
</TABLE>
Page 3 of 19
<PAGE> 4
Schedule 2B
Monthly Financial Report for Business
For the Period Beginning May 31, 1998 and Ending July 4, 1998
(fiscal month per books)
Other Operating Expenses Detail
<TABLE>
<CAPTION>
Account Date Check # Payee Purpose Withdrawl
- ------- ---- ------- ----- ------- ---------
<S> <C> <C> <C> <C> <C>
op 6/3/98 Debit Merchant Discount Credit Card Processing $ 142.83
op 6/3/98 Debit Merchant Interchange Credit Card Processing 31.24
op 6/3/98 Debit Merchant Interchange Credit Card Processing 28.99
op 6/3/98 Debit Merchant Fee Credit Card Processing 24.55
op 6/3/98 Debit Merchant Fee Credit Card Processing 15.00
op 6/3/98 Debit Merchant Fee Credit Card Processing 15.00
op 6/3/98 Debit Merchant Interchange Credit Card Processing 9.22
op 6/3/98 Debit Novus Fee Credit Card Processing 1.10
op 6/5/98 012867 Thomas H. Hicks Employee Expenses 1,025.32
op 6/5/98 012869 CGI-Ft. Lauderdale Freight 43.75
op 6/5/98 012874 Sensormatic/CIT Group Equipment Rental 256.18
op 6/8/98 012878 QuickSigns of Miami Customer Refund 375.00
op 6/10/98 Debit Commercial Banking Fees Bank Fees 627.52
op 6/12/98 012881 Maria E. Bolden Supplies 173.46
op 6/12/98 012882 Jeanine C. Kinsey Mileage 96.00
op 6/12/98 012883 American Stock Transfer Co. Transfer agent 500.00
op 6/12/98 012884 Bowne of Atlanta Printing 1,751.25
op 6/12/98 012887 United Parcel Service Freight 179.88
op 6/12/98 012888 CGI-Ft. Lauderdale Freight 8.70
pay 6/12/98 Debit ADP Fees Payroll Processing 52.27
op 6/19/98 012900 Zara Hernandez Employee Expenses 8.00
pay 6/26/98 Debit ADP Fees Payroll Processing 58.27
op 6/29/98 012909 Thomas H. Hicks Employee Expenses 112.56
op 6/29/98 012911 Honeywell Security 111.30
op 6/29/98 012913 CGI-Ft. Lauderdale Freight 18.35
op 6/29/98 012919 American Bank Note Co. Printing 82.50
op 7/3/98 Debit Merchant Discount Credit Card Processing 98.92
op 7/3/98 Debit Merchant Fee Credit Card Processing 45.00
op 7/3/98 Debit Merchant Fee Credit Card Processing 22.65
op 7/3/98 Debit Merchant Fee Credit Card Processing 15.00
op 7/3/98 Debit Merchant Interchange Credit Card Processing 7.42
----------
$ 5,937.23
==========
</TABLE>
Page 4 of 19
<PAGE> 5
ATTACHMENT #1
MONTHLY ACCOUNTS RECEIVABLE AGING AND RECONCILIATION
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
For the Period Beginning May 31, 1998 and Ending July 4, 1998 (fiscal month per
books)
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: $ 88,917.41
Plus: Current Month New Billings: 78,567.05
Debits transferred from A/P 35,951.20
Accrued AR-Bobby Allison 178,589.42
Less: Collections During Month (110,583.15)
Accounts Written off
------------
End of Month Balance: $ 271,441.93
============
Aging: (show the total amount for each age group of accounts incurred since
filing the petition)
0-30 days 31-60days 61-90days less than 90 days Total
See Attached Detail
Page 5 of 19
<PAGE> 6
Attachment #1
2Connect Express, Inc.
Trade Receivables
As of 05/30/98
<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 1,217.50 1,217.50
Bell South Mobility-Commission --
Bobby Allison Cellular ATT Commissions 8,073.25 3,896.25 4,177.00
Nextel-Commission --
----------- --------- ----------- ---------- ----------
Subtotal 9,290.75 3,896.25 0.00 4,177.00 1,217.50
----------- --------- ----------- ---------- ----------
----------
A/R - In-House
Beepers to Go 5,702.00 5,702.00
School Board of Dade County 3,093.43 240.00 2,853.43
Ericson 29,103.93 29,103.93
GMAC Mortgage 440.96 440.96
Ingram Retail Services 1,145.27 1,145.27
----------- --------- ----------- ---------- ----------
Subtotal 39,485.59 -- -- 240.00 39,245.59
----------- --------- ----------- ---------- ----------
----------
A/R - Activation
Bell South Mobility - Activation --
Sprint - Activation 17,419.17 17,419.17
----------- --------- ----------- ---------- ----------
Subtotal 17,419.17 0.00 0.00 0.00 17,419.17
----------- --------- ----------- ---------- ----------
----------
A/R - Coop Advertising
Cell Star -Coop 13,127.00 13,127.00
Vtech Coop Adv 8,059.00 8,059.00
----------- --------- ----------- ---------- ----------
Subtotal 21,186.00 0.00 0.00 0.00 21,186.00
----------- --------- ----------- ---------- ----------
----------
A/R- Market Development
Psion NSA 2,500.00 2,500.00
----------- --------- ----------- ---------- ----------
Subtotal 2,500.00 0.00 0.00 0.00 2,500.00
----------- --------- ----------- ---------- ----------
----------
A/R - Rebate
CellStar Rebate 2,971.00 2,971.00
----------- --------- ----------- ---------- ----------
Subtotal 2,971.00 0.00 0.00 2,971.00
----------- --------- ----------- ---------- ----------
----------
A/R - Residuals
Bell South Mobility Residuals --
----------
----------- --------- ----------- ---------- ----------
Subtotal -- 0.00 0.00 0.00 0.00
----------- --------- ----------- ---------- ----------
----------
A/R - Bobby Allison Cellular Systems of Florida, Inc.
B Allison Cellular Systems of Florida, Inc. 178,589.42 3,589.42 100,000.00 75,000.00
----------- --------- ----------- ---------- ----------
Subtotal 178,589.42 3,589.42 100,000.00 75,000.00 0.00
----------- --------- ----------- ---------- ----------
Grand Total Accounts Receivable $271,441.93 $7,485.67 $100,000.00 $79,417.00 $84,539.26
=========== ========= =========== ========== ==========
</TABLE>
Page 6 of 19
<PAGE> 7
ATTACHMENT #2
MONTHLY ACCOUNTS PAYABLE AND SECURED PAYMENTS REPORT
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
For the Period Beginning May 31, 1998 and Ending July 4, 1998 (fiscal month per
books)
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) $ 110,403.50
Plus: New Indebtedness Incurred This Month 82,114.53
Less: Amount Paid on Total Accounts Payable 27,777.89
------------
Ending Month Balance $ 164,740.14
============
SECURED: List status of payments to Secured Creditors and Lessors (Post-Petition
Only):
<TABLE>
<CAPTION>
Secured Date Number of Post Total Amount of
Creditor/ Payment Payment Petition Payments Post-petition
Lessor Due Amount Delinquent Payments Delinquent
- -------- ------- ------- ----------------- -------------------
<S> <C> <C> <C> <C>
None
</TABLE>
Page 7 of 19
<PAGE> 8
<TABLE>
<CAPTION>
Date 07/09/98 02:03pm 2Connect Express, Inc.
06-99-205 Period Cutoff Aged AP (03.681. - Historical Detail Aged by Due Date
Period: 05-99 Aging Date: 07/04/98
- -----------------------------------------------------------------------------------------------------------------------------
Vendor/ Name/ Vendor Status/ Disc Due Pay
Doc Type Ref Nbr Inv Nbr Inv Date Doc Status Date Date Date Current 1 To 30
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
4000RENAIS Renaissance Partners, LC O
VO 005011 063098 6/30/98 A 6/30/98 6/30/98 6/30/98 -- 62.33
VO 005012 063098 6/30/98 A 6/30/98 6/30/98 6/30/98 -- 79.71
VO 005017 063098 6/30/98 A 6/30/98 6/30/98 6/30/98 -- 467.77
Vendor Total -- 609.81
4001CORALC Coral CS/Ltd. Associates O
CK 012910 004987 C (7,376.31)
Vendor Total (7,376.31) --
5000BOWNE Bowne of Atlanta O
VO 005025 1--98060138--0 7/1/98 A 7/11/98 7/31/98 7/11/98 727.16 --
Vendor Total 727.16 --
5000HONEYW Honeywell O
CK 012911 004986 C (111.30)
Vendor Total (111.30) --
5000NEXTEL Nextel O
VO 005024 5191--8 7/1/98 A 7/1/98 7/16/98 7/16/98 17.96 --
Vendor Total 17.96 --
5000TELECH Telecheck O
VO 005021 061998 6/19/98 A 6/19/98 6/19/98 6/19/98 -- 117.51
VO 005022 G803295305 6/30/98 A 6/30/98 6/30/98 6/30/98 -- 134.92
Vendor Total -- 252.43
5500BELLSO BellSouth O
VO 005010 9542553900344 4/4/98 A 4/4/98 4/4/98 4/4/98 -- --
Vendor Total -- --
5500FPL Florida Power & Light O
VO 004983 71563--09556 6/18/98 A 6/18/98 7/9/98 7/9/98 429.55 --
Vendor Total 429.55 --
5C000CGI CGI--Ft. Lauderdale O
VO 005009 062498 6/24/98 A 6/24/98 7/9/98 7/9/98 86.80 --
VO 005023 378130 7/1/98 A 7/1/98 7/16/98 7/16/98 8.70 --
Vendor Total 95.50 --
6000USPS U.S. Postmaster O
VO 004889 052698 5/26/98 A 5/26/98 5/26/98 5/26/98 -- --
AD 005018 052698 6/1/98 A 6/1/98 6/1/98 -- --
Vendor Total -- --
6500EMPLOY Employer's Health Insurance O
CK 012914 004988 C (223.96)
Vendor Total (223.96) --
6500FORTIS Fortis Life Insurance O
CK 012930 005016 C (8.89)
Vendor Total (8.89) --
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------
Days Past Due
31 To 60 61 To 90 Over 90 Balance
- --------------------------------------------------------------
<S> <C> <C> <C>
-- -- -- -- 62.33
-- -- -- -- 79.71
-- -- -- -- 467.77
-- -- -- -- 609.81
(7,376.31)
-- -- -- -- (7,376.31)
-- -- -- -- 727.16
-- -- -- -- 727.16
(111.30)
-- -- -- -- (111.30)
-- -- -- -- 17.96
-- -- -- -- 17.96
-- -- -- -- 117.51
-- -- -- -- 134.92
-- -- -- -- 252.43
-- -- 340.00 340.00
-- -- 340.00 340.00
-- -- -- -- 429.55
-- -- -- -- 429.55
-- -- -- -- 86.80
-- -- -- -- 8.70
-- -- -- -- 95.50
-- 64.00 -- -- 64.00
-- (64.00) -- -- (64.00)
-- -- -- -- --
(223.96)
-- -- -- -- (223.96)
(8.89)
-- -- -- -- (8.89)
</TABLE>
Page 8 of 19
<PAGE> 9
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
6500HUMANA Humana Health Insurance O
CK 012915 005002 C (1,575.24)
Vendor Total (1,575.24)
6500KAHNCA Kahn Carlin O
VO 004827 050198 5/1/98 H 5/1/98 5/1/98 5/1/98 --
VO 004963 053198 5/31/98 H 5/31/98 5/31/98 5/31/98 --
AD 004981 3bg01594400 6/19/98 A 6/19/98 6/19/98 --
VO 005027 060198 6/1/98 H 6/1/98 6/1/98 6/1/98 --
VO 005029 061998 6/19/98 A 6/19/98 6/19/98 6/19/98 --
Vendor Total --
6500KEMPER Kemper Insurance Companies O
AD 004970 3BG0159400 6/15/98 A 6/15/98 6/15/98 --
AD 005028 060198 6/1/98 A 6/1/98 6/1/98 --
AD 005030 061998 6/19/98 A 6/19/98 6/19/98 --
AD 005031 062998 6/29/98 A 6/29/98 6/29/98 --
AD 005032 062198 6/21/98 A 6/21/98 6/21/98 --
Vendor Total --
7000BOBBYA Bobby Allison Cellular O
VO 004998 061598 6/15/98 H 6/15/98 6/15/98 6/15/98 --
VO 004999 061798 6/17/98 H 6/17/98 6/17/98 6/17/98 --
Vendor Total 1,290.90
7000CELLST CellStar O
AD 004968 Wire Transfer 6/15/98 A 6/15/98 6/15/98 --
Vendor Total --
7000PRIMEC PrimeCo O
AD 004995 29838 6/1/98 A 6/1/98 6/1/98 --
Vendor Total --
7000SEDINT SED International, Inc. O
VO 005000 1--146740101 6/5/98 A 6/5/98 6/15/98 6/15/98 --
Vendor Total --
7000SPRINT Sprint PCS O
VO 004489 030598 3/5/98 H 3/5/98 3/5/98 3/5/98 --
VO 004708 WBE--028087 1/29/97 H 1/29/97 2/28/97 2/28/97 --
Vendor Total --
7200ICANEC ICanect H
VO 004183 013198 1/31/98 A 1/31/98 3/2/98 3/2/98 --
Vendor Total --
90003COM 3Com Credit Corporation O
VO 004578 00008985 4/1/98 H 4/1/98 4/1/98 4/1/98 --
Vendor Total --
</TABLE>
<TABLE>
<S> <C> <C>
(1,575.24)
-- -- -- -- (1,575.24)
-- -- 4,666.62 -- 4,666.62
-- 11,324.76 -- -- 11,324.76
(2,641.00) -- -- -- (2,641.00)
-- 2,677.00 -- -- 2,677.00
2,641.00 -- -- -- 2,641.00
-- 14,001.76 6.62 -- 18,668.38
(2,187.00) -- -- -- (2,187.00)
-- (2,677.00) -- -- (2,677.00)
(2,641.00) -- -- -- (2,641.00)
(611.00) -- -- -- (611.00)
(9,139.00) -- -- -- (9,139.00)
(14,578.00) (2,677.00) -- -- (17,255.00)
980.90 -- -- -- 980.90
310.00 -- -- -- 310.00
-- -- -- 1,290.90
(779.08) -- -- -- (779.08)
(779.08) -- -- -- (779.08)
-- (74.50) -- -- (74.50)
-- (74.50) -- -- (74.50)
599.00 -- -- -- 599.00
599.00 -- -- -- 599.00
-- -- -- 342.00 342.00
-- -- -- 684.00 684.00
-- -- -- 1,026.00 1,026.00
-- -- -- 269.34 269.34
-- -- -- 269.34 269.34
-- -- -- 208.00 208.00
-- -- -- 208.00 208.00
</TABLE>
Note 1 -- Negative balances are due to invoices paid in advance of the calendar
month the expense is recorded.
Page 9 of 19
<PAGE> 10
<TABLE>
<S> <C> <C> <C> <C>
9000BAKERM Baker & McKenzie O
VO 004973 50104273 6/1/98 H 6/1/98 7/1/98 7/1/98 -- 13,403.85
Vendor Total -- 13,403.85
9000COLLDA Coll Davidson Carter O
VO 004969 060898 6/8/98 H 6/8/98 6/8/98 6/8/98 -- 17,236.96
Vendor Total -- 17,236.96
9000KELLEY Kelley Drye & Warren, LLP O
VO 004858 1302933 5/15/98 H 5/15/98 5/15/98 5/15/98 -- --
VO 005026 1307186 7/6/98 H 7/6/98 7/6/98 7/6/98 28,327.44 --
Vendor Total 28,327.44 --
9000KPMG KPMG Peat Marwick O
VO 004357 01821 2/17/98 H 2/17/98 3/19/98 3/19/98 -- --
Vendor Total -- --
Report Total 20,301.91 18,035.87
</TABLE>
<TABLE>
<S> <C>
-- -- -- 13,403.85
-- -- -- 13,403.85
-- -- -- 17,236.96
-- -- -- 17,236.96
101,842.10 -- -- 101,842.14
-- -- -- 28,327.44
101,842.14 -- -- 130,169.58
-- -- 6,800.00 6,800.00
-- -- 6,800.00 6,800.00
113,092.40 4,666.62 8,643.34 164,740.14
</TABLE>
Note 1 -- Negative balances are due to invoices paid in advance of the calendar
month the expense is recorded.
Page 10 of 19
<PAGE> 11
ATTACHMENT #3
INVENTORY AND FIXED ASSETS REPORT
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
For the Period Beginning May 31, 1998 and Ending July 4, 1998 (fiscal month per
books)
<TABLE>
<S> <C>
INVENTORY REPORT
Inventory Balance at Petition Date: $ 2,191,354
===========
Inventory Reconciliation:
Inventory Balance at Beginning of Month (Period) $ 26,977
Inventory Purchased During Month (Period) 10,581
Inventory Used or Sold: (30,328)
Less Inventory liquidations via court approved auctions
Less Inventory writedowns to liquidation values
-----------
Inventory On-Hand at End of Month (Period) $ 7,229
===========
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)
Fixed Assets Reconciliation:
Fixed Asset Book Value at Beginning of Month(Period): $ 1,394,132
Less: Depreciation Expense for Period: -- See Note 1
Plus: New Purchases/Additions: --
-----------
Ending Month(Period) Balance: $ 1,394,132 See Note 2
===========
</TABLE>
Note 1 - The majority of fixed assets were contracted in April to be sold,
therefore no depreciation was recorded for April through June.
Note 2 - Cumulative reserves for loss on sales of assets were recorded on the
books on an accrual basis in the amount of $1,169,853.
Page 11 of 19
<PAGE> 12
ATTACHMENT #4
MONTHLY BANK ACCOUNT RECONCILIATION
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
For the Period Beginning May 31, 1998 and Ending July 4, 1998 (fiscal month per
books)
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
<TABLE>
<S> <C> <C>
Beginning Balance $ 351,238.21
Total of Deposits Made 132,436.29
Amount of Deposits from Account Sweeps (See Note Below) 460,079.79
Amount of Receipts from Account Sweeps (See Note Below) (460,079.79)
Amount of Cash funding Payroll Account (53,079.79)
Total Amount of Checks Written (30,941.71)
------------
Closing Balance $ 399,653.00
============
Number of 1st Check Written This Period: 012867
Number of Last Check Written This Period: 012930
------
Total Number of Checks Written or voided This Period: 63
======
</TABLE>
Note - Daily "Sweep" transfers are made 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 12 of 19
<PAGE> 13
ATTACHMENT #4
MONTHLY BANK ACCOUNT RECONCILIATION
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
For the Period Beginning May 31, 1998 and Ending July 4, 1998 (fiscal month per
books)
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>
<S> <C> <C>
Beginning Balance (13,122.33)
Total of Deposits Made 53,079.79
Total Amount of Checks Written (39,957.79)
Service Charges -
----------
Closing Balance (0.33) Since this is a Zero Balance account,
========== negative balances represent
outstanding checks.
Number of 1st Check Written This Period: 1919
Number of Last Check Written This Period: 1942
----
Total Number of Checks Written This Period: 23
====
</TABLE>
INVESTMENT ACCOUNTS
Type of Negotiable Face Purchase Date of
Instrument Value Price Purchase
-------------------- ----- -------- --------
None
Page 13 of 19
<PAGE> 14
ATTACHMENT #5
CHECK REGISTER
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
For the Period Beginning May 31, 1998 and Ending July 4, 1998 (fiscal month per
books)
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>
- -----------------------------------------------------------------------------------------------------------
Date Ck # Payee Purpose Amount
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6/3/98 Debit CellStar Inventory $ 330.00
6/3/98 Debit Merchant Discount Credit Card Fees 142.83
6/3/98 Debit Merchant Fee Credit Card Fees 24.55
6/3/98 Debit Merchant Fee Credit Card Fees 15.00
6/3/98 Debit Merchant Fee Credit Card Fees 15.00
6/3/98 Debit Merchant Interchange Credit Card Fees 31.24
6/3/98 Debit Merchant Interchange Credit Card Fees 28.99
6/3/98 Debit Merchant Interchange Credit Card Fees 9.22
6/3/98 Debit Novus Fee Credit Card Fees 1.10
6/4/98 Debit PrimeCo Inventory 1,117.50
6/5/98 012867 Thomas H. Hicks Employee Expenses 1,025.32
6/5/98 012868 Florida Power & Light Utilities 400.18
6/5/98 012869 CGI-Ft. Lauderdale Freight 43.75
6/5/98 012870 Employer's Health Insurance Insurance 247.72
6/5/98 012871 Fortis Life Insurance Insurance 17.65
6/5/98 012872 Kemper Insurance Companies Insurance 2,562.00
6/5/98 012873 Direct Wireless Inventory 44.90
6/5/98 012874 Sensormatic/CIT Group Equipment Rental 256.18
6/8/98 012875 Beeper To Go Inventory 420.00
6/8/98 012876 Void Void --
6/8/98 012877 Brightpoint Inventory 917.94
6/8/98 012878 QuickSigns of Miami Customer Refund 375.00
6/10/98 012879 Direct Wireless Inventory 67.55
6/10/98 Debit Commercial Banking Fees Bank Fees 627.52
6/12/98 012880 Brightpoint Inventory 1,166.88
6/12/98 012881 Maria E. Bolden Employee Expenses 173.46
6/12/98 012882 Jeanine C. Kinsey Employee Expenses 96.00
6/12/98 012883 American Stock Transfer Co. Stock Transfer Agent 500.00
6/12/98 012884 Bowne of Atlanta SEC Filing 1,751.25
6/12/98 012885 LDDS Worldcom Long Distance 65.52
6/12/98 012886 Nextel Demo Lines 75.36
6/12/98 012887 United Parcel Service Freight 179.88
6/12/98 012888 CGI-Ft. Lauderdale Freight 8.70
6/12/98 012889 Void Void --
6/12/98 012890 Void Void --
6/12/98 012891 Void Void --
6/12/98 012892 SED International, Inc. Inventory 1,222.00
6/12/98 012893 AirData Communiciations, Inc. Customer Install 120.00
</TABLE>
Page 14 of 19
<PAGE> 15
<TABLE>
<S> <C> <C> <C> <C>
6/15/98 012894 Beeper To Go Inventory 385.00
6/15/98 012895 Pana--Pacific Inventory 211.60
6/15/98 012896 TT Systems Corp. Inventory 82.50
6/15/98 012897 Florida Department of Revenue Sales Tax 886.96
6/15/98 Debit CellStar Inventory 1,465.88
6/17/98 012898 Go--Neo Inventory 133.00
6/17/98 012899 Advanced Fox Cellular Inventory 74.33
6/19/98 012900 Zara Hernandez Employee Expenses 8.00
6/19/98 012901 BellSouth Telephone 275.97
6/19/98 012902 Coral Springs Improvement Dist Utilities 21.00
6/19/98 012903 Trescom International Telephone 789.63
6/19/98 012904 Bobby Allison Cellular Inventory 1,256.65
6/19/98 012905 Void Void --
6/19/98 012906 SED International, Inc. Inventory 1,311.00
6/19/98 012907 Direct Wireless Inventory 8.95
6/19/98 012908 Recoton Inventory 243.16
6/29/98 012909 Thomas H. Hicks Employee Expenses 112.56
6/29/98 012910 Coral CS/Ltd. Associates Rent 7,376.31
6/29/98 012911 Honeywell Security 111.30
6/29/98 012912 Trescom International Telephone 7.79
6/29/98 012913 CGI--Ft. Lauderdale Freight 18.35
6/29/98 012914 Employer's Health Insurance Insurance 223.96
6/29/98 012915 Humana Health Insurance Insurance 1,575.24
6/29/98 012916 Void Void --
6/29/98 012917 Void Void --
6/29/98 012918 Void Void --
6/29/98 012919 American Bank Note Co. Printing Warrants 82.50
6/29/98 012920 Beeper To Go Inventory 2.00
6/29/98 012921 Void Void --
6/29/98 012922 Void Void --
6/29/98 012923 Void Void --
6/29/98 012924 Void Void --
6/29/98 012925 Void Void --
6/29/98 012926 Void Void --
6/29/98 012927 Void Void --
6/29/98 012928 Void Void --
6/29/98 012929 Void Void --
6/30/98 012930 Fortis Life Insurance Insurance 8.89
7/3/98 Debit Merchant Discount Credit Card Fees 98.92
7/3/98 Debit Merchant Fee Credit Card Fees 45.00
7/3/98 Debit Merchant Fee Credit Card Fees 22.65
7/3/98 Debit Merchant Fee Credit Card Fees 15.00
7/3/98 Debit Merchant Interchange Credit Card Fees 7.42
-----------
$ 30,941.71
===========
</TABLE>
Page 15 of 19
<PAGE> 16
ATTACHMENT #5
CHECK REGISTER
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
For the Period Beginning May 31, 1998 and Ending July 4, 1998 (fiscal month per
books)
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>
- ----------------------------------------------------------------------------------------------------------------------------
Date Ck # Payee Purpose Amount
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6/12/98 1919 Hicks, Thomas Net Pay 5,410.46
6/12/98 1920 Bolden, Maria Net Pay 937.42
6/12/98 1921 Kinsey, Jeanine Net Pay 800.47
6/12/98 1922 Kinsey, Matthew Net Pay 398.96
6/12/98 1923 Smith, Donald Net Pay 831.83
6/12/98 1924 Cohen, George Net Pay 755.48
6/12/98 1925 Patierno, Joe Net Pay 226.55
6/12/98 1926 Pettineo, John Net Pay 448.00
6/12/98 1927 Silverman, Patricia Net Pay 1,042.15
6/12/98 1928 Sordelet, Claude Net Pay 584.30
6/12/98 1929 Bryan, Melanie Net Pay 1,094.20
6/12/98 1930 Garepy, Richard Net Pay 168.35
6/12/98 Debit ADP Taxes Payroll Taxes 3,536.27
6/12/98 Debit ADP Fees Payroll Fees 52.27
6/26/98 1931 Hicks, Thomas Net Pay 5,410.47
6/26/98 1932 Bolden, Maria Net Pay 937.42
6/26/98 1933 Chalfant, Christopher Net Pay 3,425.29
6/26/98 1934 Kinsey, Jeanine Net Pay 800.48
6/26/98 1935 Kinsey, Matthew Net Pay 212.41
6/26/98 1936 Smith, Donald Net Pay 1,441.61
6/26/98 1937 Cohen, George Net Pay 1,028.19
6/26/98 1938 Patierno, Joe Net Pay 451.01
6/26/98 1939 Pettineo, John Net Pay 115.21
6/26/98 1940 Silverman, Patricia Net Pay 1,404.37
6/26/98 1941 Sordelet, Claude Net Pay 938.77
6/26/98 1942 Bryan, Melanie Net Pay 1,526.71
6/26/98 Debit ADP Taxes Payroll Taxes 5,920.87
6/26/98 Debit ADP Fees Payroll Fees 58.27
-----------
$ 39,957.79
===========
</TABLE>
Page 16 of 19
<PAGE> 17
ATTACHMENT #6
MONTHLY TAX REPORT
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
For the Period Beginning May 31, 1998 and Ending July 4, 1998 (fiscal month per
books)
TAXES PAID DURING THE MONTH (PERIOD)
Report all post-petition taxes paid directly or deposited into the tax account.
<TABLE>
<CAPTION>
Date Bank or Payee Description Amount
---- ------------- ----------- ------
<S> <C> <C> <C>
6/15/98 Florida Department of Revenue Consolidated Sales Tax Return for May, 1998 $ 886.96
6/12/98 IRS9 and Fla Dept of Rev PR taxes deposited by ADP 3,536.27
6/26/98 IRS9 and Fla Dept of Rev PR taxes deposited by ADP 5,920.87
-----------
$ 10,344.10
===========
</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 return filed: See Above
<TABLE>
<CAPTION>
Name of Taxing Date Pmt.
Authority Due Description Amount
-------------- -------- ----------- ------
<S> <C> <C> <C>
Florida Department of Revenue 7/20/98 Consolidated Sales Tax Return for June, 1998 $ 876.14
===========
</TABLE>
Page 17 of 19
<PAGE> 18
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
For the Period Beginning May 31, 1998 and Ending July 4, 1998 (fiscal month per
books)
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 13,461.54
</TABLE>
<TABLE>
<CAPTION>
PERSONNEL REPORT Store Corporate
Full Time Part Time Full Time Part Time Total
--------- --------- --------- --------- -----
<S> <C> <C> <C> <C> <C>
Number of Employees at Beginning of Period 4 2 4 -- 10
Number Hired during Period -- -- -- -- 0
Number Terminated or Resigned during Period 3 2 1 -- 6
------------------------------------------------
Number of Employees on payroll at end of Period 1 0 3 0 4
================================================
</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 & Surplus Kahn-Carlin & Company, Inc NSP2108136 Directors & Officers Liability 7/9/98 Paid
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 Liab 9/11/98 Paid
Humana, Inc. Humana, Inc. Group #133739 Employee Health and Life 9/30/98 Monthly
Stacey Granger
Phone (800) 442-5555
</TABLE>
Page 18 of 19
<PAGE> 19
ATTACHMENT #8
SIGNIFICANT DEVELOPMENTS DURING REPORTING PERIOD
For the Period Beginning May 31, 1998 and Ending July 4, 1998 (fiscal month per
books)
1. On June 16, 1998 the Company reached a settlement with its primary cellular
service provider to compensate for early termination of its contract. Under
the settlement agreement, all prepetition amounts owed (claim filed) the
service provider of approximately $148,000 were forgiven by the creditor
and an additional amount of $66,000 cash was paid to the Company.
2. Persuant to a management agreement with Bobby Allison Cellular Systems of
Florida, Inc. ("BAC"), BAC assumed control of the Company's last remaining
store on June 18, 1998. All employees of this store except for one direct
salesperson were terminated by the Company and were hired by BAC.
3. Subsequent to the period closing, the Company reached agreement with
Ericsson, a hardware supplier, to settle and remit debit balances totaling
over $21,000 and, in an unrelated matter, has enforced the "automatic stay"
to preserve the Company's Nextel contract, thereby permitting continued
direct sales of Nextel phones.
Page 19 of 19
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