<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) April 22, 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 Blvd., Suite 101, Pompano Beach, FL 33069
- ------------------------------------------------ ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (954) 797-7960
- -------------------------------------------------------------------------------
1700 NW 65th Ave., Suite 4, Plantation, FL 33313
- ----------------------------------------------- ----------
(Former address of principal executive offices) (Zip Code)
(Former name, former address and former fiscal year,
if changed since last report)
<PAGE> 2
Item 2. ACQUISITION OR DISPOSITION OF ASSETS
In the month of January, 1998, in anticipation of excess inventory liquidations
during bankruptcy proceedings, inventory was written down to an estimated
realizable market value by providing a reserve of $717,357. On April 22 and 23,
1998, 2Connect Express, Inc. held a Bankruptcy Court approved auction in order
to liquidate excess inventory remaining after the Company closed nine of its'
ten stores and conducted clearance sales in many of those stores. The inventory
included in the auction consisted of cellular phones, pagers, telephones, fax
machines, accessories, and other equipment. Stampler Auctions of Hollywood,
Florida, a local independent auctioneer, conducted the auction realizing total
proceeds for 2Connect Express, Inc. of $334,575 for inventory having an book
value of $277,175 which is the net amount after deducting the valuation reserve
of $717,357.
Item 5. OTHER EVENTS
On May 6, 1998, 2Connect Express, Inc. ("2Connect") filed a press release
announcing that it had executed a Merger Agreement with Bobby Allison Cellular
Systems of Florida, Inc. ("Bobby Allison"), whereby Bobby Allison will merge
with and into a newly formed subsidiary of 2Connect after 2Connect emerges from
bankruptcy. Subsequent to 2Connect filing bankruptcy on January 12, 1998, it has
closed all of its' stores except the store at Coral Square Mall in Coral
Springs, Florida. In addition to these store closings, 2Connect has liquidated
all excess inventory, fixtures and equipment, reduced its overhead to skeleton
levels, and filed a Plan of Reorganization and Disclosure Statement with the
court, preparatory to the aforementioned merger. A copy of this report is filed
as Exhibit 99.1 hereto.
On May 19, 1998, 2Connect Express, Inc. filed with the United States Bankruptcy
Court the Debtor's Monthly Financial Report (Business) for the period from April
5, 1998 to May 2, 1998. A copy of this report is filed as Exhibit 99.2 hereto.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) EXHIBITS
Exhibit 99.1 Press Release dated May 6, 1998.
Exhibit 99.2 Debtor's Monthly Financial Report (Business) For The
Period From April 5, 1998 to May 2, 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: May 19, 1998 /s/ THOMAS H. HICKS
- ------------------------- ----------------------------------------
Thomas H. Hicks, President and Chief
Executive Officer
<PAGE> 4
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Number Description Sequentially Numbered Page
- -------------- ----------- --------------------------
<S> <C> <C>
99.1 Press Release dated May 6, 1998 5
99.2 Debtor's Monthly Financial Report 6
for the period from April 5, 1998
to May 2, 1998
</TABLE>
<PAGE> 1
Exhibit 99.1
FOR IMMEDIATE RELEASE
For Further Information Contact:
Mr. Thomas H. Hicks
President & Chief Executive Officer
Phone (954) 797-7960
Fax (954) 971-1922
2Connect Executes Merger Agreement
PLANTATION, FL (May 6, 1998) - 2Connect Express, Inc. (OTC Bulletin Board:
CNTCU) today announced that it has executed a Merger Agreement with Bobby
Allison Cellular Systems of Florida, Inc., whereby Bobby Allison will merge with
and into a newly formed subsidiary of 2Connect after 2Connect emerges from
bankruptcy. 2Connect filed a voluntary petition for relief under Chapter 11 of
the U.S. Bankruptcy Code on January 12, 1998, and subsequently has closed all of
its stores except the store at Coral Square Mall in Coral Springs, Florida,
which will remain open. The Company has also liquidated all excess inventory,
fixtures and equipment, reduced its overhead to skeleton levels, and filed a
Plan of Reorganization and Disclosure Statement with the court, preparatory to
the aforementioned merger.
The merger is dependent on, among other things, confirmation by the court of the
Plan of Reorganization and the execution of a letter of intent for additional
financing. Upon completion of additional financing, for which there are no
current commitments or indications of interest, it is anticipated that 20% of
the combined entity will be owned by current shareholders of 2Connect, 35% by
principals of Bobby Allison and 45% by new investors, some of which may also be
existing shareholders.
2Connect's Chief Executive Officer, Thomas H. Hicks, commented, "the Company is
pleased that the plan to merge, after completing a partial liquidation, is
proceeding as anticipated, and we are particularly pleased that our Plan of
Re-organization addresses both creditors and shareholders. Our merger partner,
Bobby Allison Cellular Systems of Florida, Inc. is a mall based cellular and
paging retailer in Florida run by two industry experienced operators."
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."
3500 Gateway Drive., Suite 101, Pompano Beach, Florida 33069
<PAGE> 1
Exhibit 99.2
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 April 5, 1998 TO May 2, 1998 (5-2-98 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 20
<PAGE> 2
MONTHLY FINANCIAL REPORT FOR BUSINESS
For the Period Beginning April 5, 1998 and Ending May 2, 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
------------- ----------------
<C> <C> <C>
1. Cash at Beginning of Period $ 275,466.85 $ 106,714.48
------------ -------------
2. Receipts:
A. Cash and Credit Card Sales 171,567.07 990,492.23
Less: Cash and Credit Card Refunds (1,333.83)
------------ -------------
Net Cash and Credit Card Sales 171,567.07 989,158.40
------------ -------------
B. Collection in Post-petition A/R 60,601.59 192,382.74
C. Collection on Pre-petition A/R 22,912.67 282,682.94
D. Other Receipts (Schedule 2A) 20,134.81 53,899.18
E. Deposits From Account Sweeps 527,696.42 2,023,294.64
F. Less Disbursement Sweeps (527,696.42 (2,022,452.05)
G. Auction sales-held in bankurptcy atty
trust account 334,575.00 334,575.00
------------ -------------
3. Total Receipts 609,791.14 1,853,540.85
------------ -------------
4. Total Cash Available for Operations(1+3) 885,257.99 1,960,255.33
------------ -------------
5. Disbursements:
A. U.S. Trustee Quarterly Fees 3,750.00 3,750.00
B. Net Payroll 61,368.04 320,720.84
C. Payroll Taxes Paid 22,555.29 120,702.88
D. Sales and Use Taxes 16,600.53 40,454.84
E. Other Taxes -- --
F. Rent 9,193.46 125,568.22
G. Other Leases (attachment 3) 256.18 33,302.96
H. Telephone 1,967.71 25,727.80
I. Utilities 1,924.02 15,165.01
J. Travel and Entertainment 4,080.18 23,258.77
K. Vehicle Expenses -- --
L. Office Supplies 726.17 5,320.61
M. Advertising 2,631.34 22,796.89
N. Insurance (attachment 7) 5,442.87 35,502.16
O. Purchases of Fixed Assets -- --
P. Purchases of Inventory 4,393.20 89,630.96
Q. Manufacturing Supplies -- --
R. Repairs and Maintenance -- 1,604.19
S. Payments to Secured Creditors -- 281,499.96
T. Other Operating Expenses(Schedule 2B) 11,264.58 76,144.84
------------ -------------
6. Total Cash Disbursements 146,153.57 1,221,150.91
------------ -------------
7. Ending Cash Balance (4-6) $ 739,104.42 $ 739,104.42
============ =============
</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 15th day of May, 1998. Signed: /s/ Thomas H. Hicks
--------------------------------------
Thomas H. Hicks, CEO, CFO
2 of 20
<PAGE> 3
Schedule 2A
Monthly Financial Report for Business
For the Period Beginning April 5, 1998 and Ending May 2, 1998
(fiscal month per books)
Other Receipts Detail
<TABLE>
<CAPTION>
Account Date Check # Payee Purpose Deposit
- ------- ---- ------- ----- ------- -------
<S> <C> <C> <C> <C>
op 4/7/98 Deposit Deposit Cobra $ 210.29
op 4/29/98 Deposit Deposit Cobra 338.96
op 4/6/98 Deposit First Union Interest Interest 134.25
op 4/7/98 Deposit First Union Interest Interest 42.28
op 4/8/98 Deposit First Union Interest Interest 40.92
op 4/9/98 Deposit First Union Interest Interest 45.75
op 4/10/98 Deposit First Union Interest Interest 45.12
op 4/13/98 Deposit First Union Interest Interest 141.90
op 4/14/98 Deposit First Union Interest Interest 48.50
op 4/15/98 Deposit First Union Interest Interest 49.00
op 4/16/98 Deposit First Union Interest Interest 51.67
op 4/17/98 Deposit First Union Interest Interest 49.94
op 4/20/98 Deposit First Union Interest Interest 146.81
op 4/21/98 Deposit First Union Interest Interest 49.62
op 4/22/98 Deposit First Union Interest Interest 48.09
op 4/23/98 Deposit First Union Interest Interest 50.19
op 4/24/98 Deposit First Union Interest Interest 49.21
op 4/27/98 Deposit First Union Interest Interest 149.71
op 4/28/98 Deposit First Union Interest Interest 49.44
op 4/29/98 Deposit First Union Interest Interest 49.13
op 4/30/98 Deposit First Union Interest Interest 48.21
op 5/1/98 Deposit First Union Interest Interest 47.37
op 4/7/98 Deposit Deposit -Brightstar
Corporation Inventory Liquidation 17,242.00
op 4/14/98 Deposit Deposit NSF Check Refund 307.35
op 4/9/98 Deposit Deposit Utility Deposit Refund 699.10
----------
Total $20,134.81
==========
</TABLE>
Page 3 of 20
<PAGE> 4
Schedule 2B
Monthly Financial Report for Business
For the Period Beginning April 5, 1998 and Ending May 2, 1998
(fiscal month per books)
Other Operating Expenses Detail
<TABLE>
<CAPTION>
Account Date Check # Payee Purpose Withdrawal
- ------- ---- ------- ----- ------- ----------
<S> <C> <C> <C> <C>
op 4/6/98 Debit Novus Monthly Settlement Credit Card Fees $ 112.85
op 4/7/98 012707 Dana Ford Customer Refund 264.98
op 4/7/98 012708 Alan Kaback Customer Refund 169.58
op 4/7/98 012709 Marisela Morley Customer Refund 152.62
op 4/7/98 012710 Radha Rampersad Customer Refund 280.88
op 4/7/98 012711 Advance Service Industries Janitor 360.78
op 4/7/98 012712 American Stock Transfer Co. Transfer Agent 500.00
op 4/7/98 012713 Aqua Springs Water Coffee Service 20.50
op 4/7/98 012714 Bowne of Atlanta Printing 745.07
op 4/7/98 012715 Dependable Courier Courier 1,002.05
op 4/7/98 012716 Federal Express Corporation Freight 23.00
op 4/10/98 Debit Commercial Bank Charges Bank Fees 779.22
pay 4/10/98 Debit ADP Fees Payroll Fees 65.83
op 4/17/98 012734 Frank Cardone Customer Refund 63.59
op 4/17/98 012735 Tammy Evans Customer Refund 37.09
op 4/17/98 012736 Clifton Frank Customer Refund 119.76
op 4/17/98 012737 Alain Nicolas-David Customer Refund 52.99
op 4/17/98 012740 United Parcel Service Freight 177.36
op 4/17/98 012742 CGI-Ft. Lauderdale Freight 69.85
op 4/17/98 012746 Nancy Higgins Customer Refund 63.58
pay 4/17/98 Debit ADP Fees Payroll Fees 65.33
op 4/21/98 012748 AR Video and Film, Inc. Auction Video Taping 1,135.00
op 4/21/98 Debit Telecheck Check Processing Fee 1,022.36
op 4/23/98 012753 Koniver Stern Group~The Legal, Court Approved 1,770.00
op 4/24/98 012758 Pedro Brado Customer Refund 52.99
op 4/24/98 012759 Justin Klosky Customer Refund 211.99
op 4/24/98 012760 Cecelia Salenno Customer Refund 189.72
op 4/24/98 012761 Dependable Courier Courier 192.60
op 4/24/98 012762 PR Newswire, Inc. Press Releases 90.00
op 4/24/98 012765 CGI-Ft. Lauderdale Freight 158.10
pay 4/24/98 Debit ADP Fees Payroll Fees 236.00
op 4/28/98 012768 Reliable Cable Wiring New Corp Office 1,017.60
pay 5/1/98 Debit ADP Fees Payroll Fees 61.31
----------
Total $11,264.58
==========
</TABLE>
Page 4 of 20
<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 April 5, 1998 and Ending May 2, 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: $ 156,783.73
Plus: Current Month New Billings: 28,904.22
Less: Collections During Month: (83,514.26)
Accounts Written off (14,540.53)
-----------------
End of Month Balance: $ 87,633.16
=================
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 Greater than 90 days Total
See Attached Detail
Page 5 of 20
<PAGE> 6
Attachment #1
2Connect Express, Inc.
Trade Receivables
As of 05/02/98
<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 $ 352.00 $ 865.50
Bell South Mobility-Commission 7,610.00 7,610.00 0.00
Nextel-Commission 6,999.30 1,250.00 5,749.30
----------- ---------- ---------- --------- ----------
Subtotal 15,826.80 9,212.00 6,614.80 0.00 0.00
----------- ---------- ---------- --------- ----------
A/R - In-House
Bell South Mobility --
School Board of Dade County 7,372.30 643.31 6,728.99
GMAC Mortgage 440.96 440.96
----------- ---------- ---------- --------- ----------
Subtotal 7,813.26 0.00 0.00 643.31 7,169.95
----------- ---------- ---------- --------- ----------
A/R - Activation
Bell South Mobility - Activation 7,875.00 3,625.00 4,250.00
PrimeCo - Activation --
Sprint - Activation 17,419.17 2,905.00 14,514.17
----------- ---------- ---------- --------- ----------
Subtotal 25,294.17 0.00 3,625.00 7,155.00 14,514.17
----------- ---------- ---------- --------- ----------
A/R - Coop Advertising
Cell Star -Coop 13,127.00 13,127.00
Ericcson - Coop 668.00 668.00
Vtech Coop Adv 8,059.00 8,059.00
----------- ---------- ---------- --------- ----------
Subtotal 21,854.00 0.00 0.00 0.00 21,854.00
----------- ---------- ---------- --------- ----------
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 11,373.93 11,000.00 373.93
----------- ---------- ---------- --------- ----------
Subtotal 11,373.93 11,000.00 373.93 0.00 0.00
----------- ---------- ---------- --------- ----------
Grand Total Accounts Receivable, net 87,633.16 $20,212.00 $10,613.73 $7,798.31 $49,009.12
========== ========== ========= ==========
Less Reserve for Doubtful Accounts (31,134.61)
-----------
Net Accounts Receivable $ 56,498.55
===========
</TABLE>
Page 6 of 20
<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 April 5, 1998 and Ending May 2, 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) $ (17,497.83)
Plus: New Indebtedness Incurred This Month 87,694.27
Less: Amount Paid on Total Accounts Payable 61,288.64
---------------
Ending Month Balance $ 8,907.80
===============
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 7 of 20
<PAGE> 8
Date 05/02/98
2Connect Express, Inc.
Period Cutoff Aged AP (05-02-98 - Historical Detail Aged by Due Date)
Rept 03.681
Aging Date: 05/02/98
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Vendor 1 31 61
Vendor/ Name/ Status/ Doc Disc Due Pay To To To Over
Doc Type Ref Nbr Inv Nbr Inv Date Status Date Date Date Current 30 60 90 90 Balance
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000AINSWO Chuck Ainsworth O
VO 004811 050298 5/2/98 A 5/2/98 5/2/98 5/2/98 25.80 0.00 0.00 0.00 0.00 25.80
Vendor Total 25.80 0.00 0.00 0.00 0.00 25.80
2000DEESDA David G. Dees O
VO 004822 050298 5/2/98 A 5/2/98 5/2/98 5/2/98 14.10 0.00 0.00 0.00 0.00 14.10
Vendor Total 14.10 0.00 0.00 0.00 0.00 14.10
2000HICKST Thomas H. Hicks O
VO 004810 050598 5/5/98 A 5/5/98 5/5/98 5/5/98 130.96 0.00 0.00 0.00 0.00 130.96
VO 004812 042998 4/29/98 A 4/29/98 4/29/98 4/29/98 0.00 1,018.83 0.00 0.00 0.00 1,018.83
Vendor Total 130.96 1,018.83 0.00 0.00 0.00 1,149.79
2000KILLOR Kevin Killoran O
VO 004819 050298 5/2/98 A 5/2/98 5/2/98 5/2/98 2,082.24 0.00 0.00 0.00 0.00 2,082.24
Vendor Total 2,082.24 0.00 0.00 0.00 0.00 2,082.24
2000ROTHMA Nathan Rothman O
VO 004813 050198 5/1/98 A 5/1/98 5/1/98 5/1/98 0.00 94.30 0.00 0.00 0.00 94.30
Vendor Total 0.00 94.30 0.00 0.00 0.00 94.30
2009CASTEL Lena Castellanos O
VO 004806 Check 1886 5/1/98 A 5/1/98 5/1/98 5/1/98 0.00 687.60 0.00 0.00 0.00 687.60
Vendor Total 0.00 687.60 0.00 0.00 0.00 687.60
2009GAREPY Richard Garepy O
VO 004829 Check 1887 5/8/98 A 5/8/98 5/8/98 5/8/98 351.10 0.00 0.00 0.00 0.00 351.10
Vendor Total 351.10 0.00 0.00 0.00 0.00 351.10
4000STORAL Stor All O
CK 012776 004802 C -198.40 -198.40
Vendor Total -198.40 0.00 0.00 0.00 0.00 -198.40
4001CORALC Coral CS/Ltd.
Associates O
CK 012750 004777 C -7,376.31 -7,376.31
See Note 1 Vendor Total -7,376.31 0.00 0.00 0.00 0.00 -7,376.31
5000AQUASP Aqua Springs
Water O
VO 004821 102214 4/30/98 A 4/30/98 4/30/98 4/30/98 0.00 22.00 0.00 0.00 0.00 22.00
Vendor Total 0.00 22.00 0.00 0.00 0.00 22.00
5000CHARLE Charles E.
Simon & Co O
VO 004807 22011 4/17/98 A 4/17/98 5/17/98 5/17/98 135.00 0.00 0.00 0.00 0.00 135.00
Vendor Total 135.00 0.00 0.00 0.00 0.00 135.00
5000DESIGN Designs Art
& Framing O
VO 004808 4649 4/28/98 A 4/28/98 4/28/98 4/28/98 0.00 16.96 0.00 0.00 0.00 16.96
Vendor Total 0.00 16.96 0.00 0.00 0.00 16.96
</TABLE>
Page 8 of 20
<PAGE> 9
Date 05/02/98
2Connect Express, Inc.
Period Cutoff Aged AP (05-02-98 - Historical Detail Aged by Due Date)
Rept 03.681
Aging Date: 05/02/98
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Vendor 1 31 61
Vendor/ Name/ Status/ Doc Disc Due Pay To To To Over
Doc Type Ref Nbr Inv Nbr Inv Date Status Date Date Date Current 30 60 90 90 Balance
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5000LDDSWO LDDS Worldcom O
VO 004830 199598 4/6/98 A 4/26/98 4/26/98 4/26/98 0.00 44.52 0.00 0.00 0.00 44.52
Vendor Total 0.00 44.52 0.00 0.00 0.00 44.52
5000RELIAC Reliable Cable O
VO 004809 16468 5/4/98 A 5/4/98 5/4/98 5/4/98 127.20 0.00 0.00 0.00 0.00 127.20
Vendor Total 127.20 0.00 0.00 0.00 0.00 127.20
5000TELECH Telecheck O
VO 004319 B803295305 1/31/98 H 1/31/98 2/19/98 2/19/98 0.00 0.00 0.00 628.06 0.00 628.06
AD 004542 021998 2/19/98 H 2/19/98 2/19/98 0.00 0.00 0.00 -970.73 0.00 -970.73
AD 004831 040898 4/8/98 A 4/8/98 4/8/98 0.00 -342.67 0.00 0.00 0.00 -342.67
VO 004840 040898 4/8/98 A 4/8/98 4/8/98 4/8/98 0.00 342.67 0.00 0.00 0.00 342.67
VO 004841 040898 4/8/98 A 4/8/98 4/8/98 4/8/98 0.00 342.67 0.00 0.00 0.00 342.67
Vendor Total 0.00 342.67 0.00 -342.67 0.00 0.00
5000TROPIC Tropical Home &
Garden PestO
VO 004761 12823 4/11/98 A 4/11/98 5/11/98 5/11/98 31.80 0.00 0.00 0.00 0.00 31.80
Vendor Total 31.80 0.00 0.00 0.00 0.00 31.80
5000UPS United Parcel
Service O
VO 004832 X60W65-188 5/2/98 A 5/2/98 5/9/98 5/2/98 431.69 0.00 0.00 0.00 0.00 431.69
Vendor Total 431.69 0.00 0.00 0.00 0.00 431.69
5500BELLSO BellSouth O
VO 004817 954V134335504 4/20/98 A 4/20/98 5/12/98 5/12/98 4,240.65 0.00 0.00 0.00 0.00 4,240.65
AD 004818 305W203332329 4/29/98 A 4/29/98 5/12/98 -979.68 0.00 0.00 0.00 0.00 -979.68
Vendor Total 3,260.97 0.00 0.00 0.00 3,260.97
6500EMPLOY Employer's Health
InsuranceO
CK 012766 004790 C -310.40 0.00 -310.40
Vendor Total -310.40 0.00 0.00 0.00 0.00 -310.40
6500FORTIS Fortis Life
Insurance O
CK 012778 004801 C -34.67 0.00 -34.67
Vendor Total -34.67 0.00 0.00 0.00 0.00 -34.67
6500HUMANA Humana Health
Insurance O
CK 012769 004794 C -2,535.80 0.00 -2,535.80
See Note 1 Vendor Total -2,535.80 0.00 0.00 0.00 0.0 -2,535.80
6500KEMPER Kemper Insurance
Companies O
VO 004703 COR 000779 3/1/98 H 3/1/98 6/9/98 6/9/98 2,562.00 0.00 0.00 0.00 0.00 2,562.00
Vendor Total 2,562.00 0.00 0.00 0.00 0.00 2,562.00
</TABLE>
Page 9 of 20
<PAGE> 10
Date 05/02/98
2Connect Express, Inc.
Period Cutoff Aged AP (05-02-98 - Historical Detail Aged by Due Date)
Rept 03.681
Aging Date: 05/02/98
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Vendor 1 31 61
Vendor/ Name/ Status/ Doc Disc Due Pay To To To Over
Doc Type Ref Nbr Inv Nbr Inv Date Status Date Date Date Current 30 60 90 90 Balance
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7000SPRINT Sprint PCS O
VO 004489 030598 3/5/98 H 3/5/98 3/5/98 3/5/98 0.00 0.00 342.00 0.00 0.00 342.00
VO 004708 WBE-028087 1/29/97 H 1/29/97 2/28/97 2/28/98 0.00 0.00 0.00 0.00 684.00 684.00
Vendor Total 0.00 0.00 342.00 0.00 684.00 1,026.00
7200CELTEC Cel-Tec O
VO 004820 123166 3/17/98 A 3/17/98 3/17/98 3/17/98 0.00 0.00 250.00 0.00 0.00 250.00
Vendor Total 0.00 0.00 250.00 0.00 0.00 250.00
7200ICANEC ICanect H
VO 004183 013198 1/31/98 A 1/31/98 3/2/98 3/2/98 0.00 0.00 0.00 269.34 0.00 269.34
Vendor Total 0.00 0.00 0.00 269.34 0.00 269.34
8100COMMER Commercial
Printers, Inc. O
VO 004769 803318 4/14/98 A 4/14/98 5/14/98 5/14/98 29.15 0.00 0.00 0.00 0.00 29.15
Vendor Total 29.15 0.00 0.00 0.00 0.00 29.15
90003COM 3Com Credit
Corporation O
VO 004578 00008985 4/1/98 H 4/1/98 4/1/98 4/1/98 0.00 0.00 0.00 208.00 0.00 208.00
Vendor Total 0.00 0.00 208.00 0.00 0.00 208.00
9000CITGRO Sensormatic/CIT
Group O
CK 012781 004776 C -256.18 -256.18
Vendor Total -256.18 0.00 0.00 0.00 0.00 -256.18
9000KPMG KPMG Peat Marwick O
VO 004357 01821 2/17/98 H 2/17/98 3/19/98 3/19/98 0.00 0.00 6,800.00 0.00 0.00 6,800.00
Vendor Total 0.00 0.00 6,800.00 0.00 0.00 6,800.00
Report Total -1,529.75 2,226.88 7,600.00 -73.33 684.00 8,907.80
</TABLE>
Note 1 - Negative balances are due to invoices paid on or before the first
of the calendar month where the expense is recorded in the following
month. (I.e. payment was recorded in the fiscal month of April, ended
5-2-98, and the expense was recorded in the fiscal month of May.)
Page 10 of 20
<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 April 5, 1998 and Ending May 2, 1998 (fiscal month per
books)
INVENTORY REPORT
<TABLE>
<CAPTION>
<S> <C>
Inventory Balance at Petition Date: $ 2,191,354
=============
Inventory Reconciliation:
Inventory Balance at Beginning of Month (Period) $ 1,190,218
Inventory Purchased During Month (Period) 4,393
Inventory Used or Sold: (153,889)
Less Inventory liquidations via court approved auctions (334,575)
Less Inventory writedowns to liquidation values (680,774)
-------------
Inventory On-Hand at End of Month (Period) $ 25,373
=============
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 the period.
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 20
<PAGE> 12
ATTACHMENT #4
MONTHLY BANK ACCOUNT RECONCILIATION
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
For the Period Beginning April 5, 1998 and Ending May 2, 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>
<CAPTION>
<S> <C>
Beginning Balance $ 308,560.35
Total of Deposits Made 275,216.14
Amount of Cash and Credit Cards Refunds --
Amount of Deposits from Account Sweeps
(See Note below) 527,696.42
Amount of Receipts from Account Sweeps
(See Note below) (527,696.42)
Amount of Cash funding Payroll Account (94,696.42)
Total Amount of Checks Written (61,801.77)
---------------
Closing Balance $ 427,278.30
===============
Number of 1st Check Written This Period: 012703
Number of Last Check Written This Period: 012781
------
Total Number of Checks Written or voided This Period: 78
======
</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 20
<PAGE> 13
ATTACHMENT #4
MONTHLY BANK ACCOUNT RECONCILIATION
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
For the Period Beginning April 5, 1998 and Ending May 2, 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>
<CAPTION>
<S> <C> <C>
Beginning Balance (33,093.50)
Total of Deposits Made 94,696.42
Total Amount of Checks Written (84,351.80)
Service Charges --
----------
Closing Balance (22,748.88) Since this is a Zero Balance account, the
========== ending negative balance represents
outstanding checks.
Number of 1st Check Written This Period: 1821
Number of Last Check Written This Period: 1888
-------
Total Number of Checks Written This Period: 67
=======
</TABLE>
INVESTMENT ACCOUNTS
Type of Negotiable Face Purchase Date of
Instrument Value Price Purchase
- ------------------ ----- -------- --------
None
Page 13 of 20
<PAGE> 14
ATTACHMENT #5
CHECK REGISTER
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
For the Period Beginning April 5, 1998 and Ending May 2, 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>
Cumulative
Date Ck # Payee Purpose Amount Amount
---- ---- ----- ------- ------ ----------
<S> <C> <C> <C> <C> <C> <C>
4/6/98 Debit Novus Monthly Settlement Credit Card Processing Fees $ 112.85 112.85
4/6/98 012703 Sun Sentinel Advertising 777.50 890.35
4/6/98 012704 Palm Beach Newspapers Advertising 166.95 1,057.30
4/7/98 012705 Chuck Ainsworth Travel Expenses 293.81 1,351.11
4/7/98 012706 Thomas H. Hicks Travel Expenses 8.60 1,434.71
4/7/98 012707 Dana Ford Customer Refund 264.98 1,699.69
4/7/98 012708 Alan Kaback Customer Refund 169.58 1,869.27
4/7/98 012709 Marisela Morley Customer Refund 152.62 2,021.89
4/7/98 012710 Radha Rampersad Customer Refund 280.88 2,302.77
4/7/98 012711 Advance Service Industries Janitorial Service 360.78 2,663.55
4/7/98 012712 American Stock Transfer Co. Transfer Agent 500.00 3,163.55
4/7/98 012713 Aqua Springs Water Coffee Service 20.50 3,184.05
4/7/98 012714 Bowne of Atlanta Financial Printing 745.07 3,929.12
4/7/98 012715 Dependable Courier Courier Services 1,002.05 4,931.17
4/7/98 012716 Federal Express Corporation Freight 23.00 4,954.17
4/7/98 012717 LDDS Worldcom Telephone 175.50 5,129.67
4/7/98 012718 City of Hollywood Utility Utlities 305.65 5,435.32
4/7/98 012719 Sun Belt Technologies Supplies 68.90 5,504.22
4/7/98 012720 Palm Beach Newspapers, Inc. Advertising 87,89 5,592.11
4/9/98 Debit PrimeCo Product 3,375.00 8,967.11
4/10/98 012721 Direct Wireless Product 316.40 9,283.51
4/10/98 Debit Commercial Bank Charges Bank Fees 779.22 10,062.73
4/13/98 012722 David G. Dees Employee Expenses -- 10,062.73
4/13/98 012723 Direct Wireless Product 38.80 10,101.53
4/13/98 012724 PrimeCo Product -- 10,101.53
4/13/98 012725 Sun Sentinel Advertising 1,599.00 11,700.53
4/15/98 012726 Office Depot Supplies 40.26 11,740.79
4/17/98 012727 Chuck Ainsworth Employee Expenses 92.12 11,832.91
4/17/98 012728 David G. Dees Employee Expenses 9.00 11,841.91
4/17/98 012729 Thomas H. Hicks Employee Expenses 30.43 11,872.34
4/17/98 012730 Kevin Killoran Employee Expenses 417.74 12,290.08
4/17/98 012731 Jeanine C. Kinsey Employee Expenses 42.00 12,332.08
4/17/98 012732 Matthew A. Kinsey Employee Expenses 259.84 12,591.92
4/17/98 012733 Nathan Rothman Employee Expenses 98.46 12,690.38
4/17/98 012734 Frank Cardone Customer Refund 63.59 12,753.97
</TABLE>
Page 14 of 20
<PAGE> 15
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
4/17/98 012735 Tammy Evans Customer Refund 37.09 12,791.06
4/17/98 012736 Clifton Frank Customer Refund 119.76 12,910.82
4/17/98 012737 Alain Nicolas-David Customer Refund 52.99 12,963.81
4/17/98 012738 Hancock Moving & Storage Storage Rent 1,618.75 14,582.56
4/17/98 012739 LDDS Worldcom Telephone 47.46 14,630.02
4/17/98 012740 United Parcel Service Freight 177.36 14,807.38
4/17/98 012741 Florida Power & Light Utlities 437.77 15,245.15
4/17/98 012742 CGI-Ft. Lauderdale Freight 69.85 15,315.00
4/17/98 012743 AirData Communiciations, Inc. Cellular Installation 120.00 15,435.00
4/17/98 012744 Florida Department of Revenue Sales Tax 16,600.53 32,035.53
4/17/98 012745 United States Trustee Quarterly Trustee Fees 3,750.00 35,785.53
4/17/98 012746 Nancy Higgins Customer Refund 63.58 35,849.11
4/20/98 012747 Cash-2Connect Supplies 124.50 35,973.61
4/21/98 012748 AR Video and Film, Inc. Auction Video 1,135.00 37,108.61
4/21/98 Debit Telecheck Bank Fees 1,022.36 38,130.97
4/22/98 012749 Office Depot Credit Plan Supplies 69.31 38,200.28
4/23/98 012750 Coral CS/Ltd. Associates Rent 7,376.31 45,576.59
4/23/98 012751 Void Void -- 45,576.59
4/23/98 012752 Office Depot Credit Plan Supplies 110.20 45,686.79
4/23/98 012753 Koniver Stern Group~The Legal, Approved by court 1,770.00 47,456.79
4/24/98 012754 Chuck Ainsworth Employee Expenses 52.05 47,508.84
4/24/98 012755 Thomas H. Hicks Employee Expenses 48.35 47,557.19
4/24/98 012756 Kevin Killoran Employee Expenses 528.18 48,085.37
4/24/98 012757 Claude Sordelet Employee Expenses 154.80 48,240.17
4/24/98 012758 Pedro Brado Customer Refund 52.99 48,293.16
4/24/98 012759 Justin Klosky Customer Refund 211.99 48,505.15
4/24/98 012760 Cecelia Salenno Customer Refund 189.72 48,694.87
4/24/98 012761 Dependable Courier Courier Services 192.60 48,887.47
4/24/98 012762 PR Newswire, Inc. Press Releases 90.00 48,977.47
4/24/98 012763 Coral Springs Improvement Dist Utlities 21.00 48,998.47
4/24/98 012764 Trescom International Telephone 1,744.75 50,743.22
4/24/98 012765 CGI-Ft. Lauderdale Freight 158.10 50,901.32
4/24/98 012766 Employer's Health Insurance Dental Insurance 310.40 51,211.72
4/27/98 012767 Broward Paper & Packaging Supplies 190.72 51,402.44
4/28/98 012768 Reliable Cable Wiring at New Office 1,017.60 52,420.04
4/28/98 012769 Humana Health Insurance Health Insurance 2,535.80 54,955.84
4/28/98 012770 Direct Wireless Product 35.00 54,990.84
4/30/98 012771 A&M Tape & Packaging Supplies 82.17 55,073.01
4/30/98 012772 A&M Tape & Packaging Supplies 40.11 55,113.12
5/1/98 012773 Chuck Ainsworth Employee Expenses 56.70 55,169.82
5/1/98 012774 Thomas H. Hicks Employee Expenses 38.10 55,207.92
5/1/98 012775 Don Smith Employee Expenses 1,875.00 57,082.92
5/1/98 012776 Stor All Storage Rent 198.40 57,281.32
5/1/98 012777 Florida Power & Light Utlities 1,159.60 58,440.92
5/1/98 012778 Fortis Life Insurance Life Insurance 34.67 58,475.59
5/1/98 012779 Kemper Insurance Companies Workers Comp Insurance 2,562.00 61,037.59
5/1/98 012780 Beeper To Go Product 508.00 61,545.59
5/1/98 012781 Sensormatic/CIT Group Equipment Lease 256.18 61,801.77
----------
$61,801.77
==========
</TABLE>
<PAGE> 16
ATTACHMENT #5
CHECK REGISTER
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
For the Period Beginning April 5, 1998 and Ending May 2, 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 Acccount: Payroll 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>
4/10/98 Debit ADP Fees Payroll Fees $ 65.83 $ 65.83
4/17/98 1821 Hicks, Thomas Net Pay 4,996.23 5,062.06
4/17/98 1822 Killoran, Kevin Net Pay 1,647.32 6,709.38
4/17/98 1823 Ainsworth, Charles Net Pay 1,858.31 8,567.69
4/17/98 1824 Dees, David Net Pay 124.67 8,692.36
4/17/98 1825 Hersh, Jason Net Pay 36.49 8,728.85
4/17/98 1826 Rothman, Nathan Net Pay 1,164.52 9,893.37
4/17/98 1827 Bolden, Mariea Net Pay 915.57 10,808.94
4/17/98 1828 Chalfant, Christopher Net Pay 3,200.06 14,009.00
4/17/98 1829 Kinsey, Jeanine Net Pay 836.20 14,845.20
4/17/98 1830 Hernandez, Zara Net Pay 876.42 15,721.62
4/17/98 1831 Kinsey, Matthew Net Pay 1,764.02 17,485.64
4/17/98 1832 Smith, Donald Net Pay 1,663.87 19,149.51
4/17/98 1833 Cohen, George Net Pay 755.47 19,904.98
4/17/98 1834 Epstein, Steven Net Pay 1,243.12 21,148.10
4/17/98 1835 Colyer, William Net Pay 52.36 21,200.46
4/17/98 1836 Cowan, Robert Net Pay 264.33 21,464.79
4/17/98 1837 Jay, Adam Net Pay 99.60 21,564.39
4/17/98 1838 Lively, Marie Net Pay 296.86 21,861.25
4/17/98 1839 Patierno, Joe Net Pay 408.11 22,269.36
4/17/98 1840 Pettineo, John Net Pay 696.18 22,965.54
4/17/98 1841 Sicuro, Alejandro Net Pay 112.56 23,078.10
4/17/98 1842 Whitten, Jillian Net Pay 185.78 23,263.88
4/17/98 1843 Park, Steven Net Pay 1,140.76 24,404.64
4/17/98 1844 Sordelet, Claude Net Pay 697.36 25,102.00
4/17/98 1845 Bruno, Robert Net Pay 447.70 25,549.70
4/17/98 1846 Killoran, Kerin Net Pay 28.28 25,577.98
4/17/98 1847 Yacobozzi, Anthony Net Pay 351.99 25,929.97
4/17/98 1848 Cullen, Jennifer Net Pay 214.05 26,144.02
4/17/98 1849 Carpenter, Jerome Net Pay 135.19 26,279.21
4/17/98 1850 Grandy, John Net Pay 1,371.64 27,650.85
4/17/98 1851 Avarez, Rubin Net Pay 264.93 27,915.78
</TABLE>
Page 16 of 20
<PAGE> 17
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
4/17/98 1852 Sorell, George Net Pay 181.96 28,097.74
4/17/98 1853 Rutter, Kenneth Net Pay 384.73 28,482.47
4/17/98 1854 Bryan, Melanie Net Pay 1,094.20 29,576.67
4/17/98 1855 Starr, Stuart Net Pay 1,045.55 30,622.22
4/17/98 1856 Castellanos, Lena Net Pay 606.79 31,229.01
4/17/98 1857 Garepy, Richard Net Pay 762.20 31,991.21
4/17/98 1858 Silverman, Patricia Net Pay 1,341.85 33,333.06
4/17/98 Debit ADP Fees Payroll Fees 65.33 33,398.39
4/17/98 Debit ADP Taxes Payroll Taxes 12,126.44 45,524.83
4/24/98 Debit ADP Fees Payroll Fees 236.00 45,760.83
5/1/98 1859 Hicks, Thomas Net Pay 4,996.23 50,757.06
5/1/98 1860 Killoran, Kevin Net Pay 1,647.32 52,404.38
5/1/98 1861 Ainsworth, Charles Net Pay 1,858.29 54,262.67
5/1/98 1862 Dees, David Net Pay 522.14 54,784.81
5/1/98 1863 Rothman, Nathan Net Pay 1,164.52 55,949.33
5/1/98 1864 Bolden, Mariea Net Pay 915.58 56,864.91
5/1/98 1865 Chalfant, Christopher Net Pay 3,071.36 59,936.27
5/1/98 1866 Kinsey, Jeanine Net Pay 800.47 60,736.74
5/1/98 1867 Hernandez, Zara Net Pay 876.43 61,613.17
5/1/98 1868 Kinsey, Matthew Net Pay 220.36 61,833.53
5/1/98 1869 Smith, Donald Net Pay 1,663.88 63,497.41
5/1/98 1870 Cohen, George Net Pay 755.48 64,252.89
5/1/98 1871 Epstein, Steven Net Pay 1,243.13 65,496.02
5/1/98 1872 Cowan, Robert Net Pay 71.34 65,567.36
5/1/98 1873 Lively, Marie Net Pay 297.85 65,865.21
5/1/98 1874 Paternio, Joe Net Pay 192.33 66,057.54
5/1/98 1875 Pettineo, John Net Pay 643.83 66,701.37
5/1/98 1876 Sicuro, Alejandro Net Pay 137.40 66,838.77
5/1/98 1877 Whiten, Jillian Net Pay 303.23 67,142.00
5/1/98 1878 Park, Steven Net Pay 620.14 67,762.14
5/1/98 1879 Sordelet, Claude Net Pay 681.87 68,444.01
5/1/98 1880 Bruno, Robert Net Pay 44.33 68,488.34
5/1/98 1881 Yacobozzi, Anthony Net Pay 27.71 68,516.05
5/1/98 1882 Grandy, John Net Pay 1,371.63 69,887.68
5/1/98 1883 Avarez, Rubin Net Pay 176.06 70,063.74
5/1/98 1884 Bryan, Melanie Net Pay 1,094.20 71,157.94
5/1/98 1885 Starr, Stuart Net Pay 1,045.54 72,203.48
5/1/98 1886 Castellanos, Lena Net Pay 687.60 72,891.08
5/1/98 1887 Garepy, Richard Net Pay 351.10 73,242.18
5/1/98 1887 Garepy, Richard Net Pay (351.10) 72,891.08
5/1/98 1888 Silverman, Patricia Net Pay 970.56 73,861.64
5/1/98 Debit ADP Fees Payroll Fees 61.31 73,922.95
5/1/98 Debit ADP Taxes Payroll Taxes 10,428.85 84,351.80
----------
$84,351.80
==========
</TABLE>
Page 17 of 20
<PAGE> 18
ATTACHMENT #6
MONTHLY TAX REPORT
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
For the Period Beginning April 5, 1998 and Ending May 2, 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>
4/17/98 Florida Department of Revenue Consolidated Sales Tax Return for March, 1998 $ 16,600.53
4/17/98 IRS and Fla Dept of Rev PR taxes deposited by ADP 12,126.44
5/1/98 IRS and Fla Dept of Rev PR taxes deposited by ADP 10,428.85
-----------
$ 39,155.82
===========
</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 5/20/98 Consolidated Sales Tax Return for April, 1998 $ 5,526.52
============
</TABLE>
Page 18 of 20
<PAGE> 19
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 April 5, 1998 and Ending May 2, 1998 (fiscal month per
books)
Report all compensation received during the period. Do not include reimbursement
for expenses incurred for which you have receipts.
Amount
Officer or Owner Name Title Paid
- --------------------- ----- ------
Thomas H. Hicks CEO COO and CFO 12,740.00
Kevin Killoran Secretary 4,616.00
<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 14 9 10 1 34
Number Hired during Period
Number Terminated or Resigned during Period 10 7 5 1
-- -- -- -- --
Number of Employees on payroll at end of Period 4 2 5 0 11
== == == == ==
</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
& Suplus Kahn-Carlin & Company, NSP2108136 Directors & 5/9/98 Paid
Roy Fabry Officers Liability
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 Kahn-Carlin &
Company, Inc. 3BG01594400 Workers Compensation 10/9/98 Monthly
CAN Kahn-Carlin &
Company, Inc .0000685C Employment Related 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 19 of 20
<PAGE> 20
ATTACHMENT #8
SIGNIFICANT DEVELOPMENTS DURING REPORTING PERIOD
For the Period Beginning April 5, 1998 and Ending May 2, 1998
(fiscal month per books)
1. The Company closed three additional stores, leaving one remaining store
open as of May 2, 1998.
2. Held two court approved auctions liquidating all remaining inventory of the
Company with the exception of inventory in the one open store.
3. Moved the Corporate Headquarters office to the following address reducing
monthly rent expense by approximately $5,000:
2Connect Express, Inc.
3500 Gateway Drive, Suite 101
Pompano Beach, FL 33069
4. On April 14, 1998, the Company filed a Plan of Reorganization and
Disclosure Statement with the Bankruptcy court pursuant to sections 1121
(b) and 1125, title 11, United States Code.
5. Reduced workforce to skeleton levels.
6. Continued negotiations for the sale of remaining assets, merger agreement
with Bobby Allison Cellular Systems of Florida, Inc. ("BAC"), and a
Management Agreement with BAC whereby that Company would assume management
of the 2Connect Coral Square Mall Store and all expenses related thereto.
Page 20 of 20
