<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) June 19, 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 June 19, 1998, 2Connect Express, Inc. filed with the United States Bankruptcy
Court the Debtor's Monthly Financial Report (Business) for the period from May
3, 1998 to May 30, 1998. A copy of this report is filed as Exhibit A hereto.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) EXHIBITS
Exhibit A. Debtor's Monthly Financial Report (Business) For The Period
From May 3, 1998 to May 30, 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: June 19, 1998 /s/ THOMAS H. HICKS
------------------------- -----------------------------
Thomas H. Hicks, President and Chief
Executive Officer
<PAGE> 4
EXHIBIT INDEX
Exhibit Number Description Sequentially Numbered Page
- -------------- ----------- --------------------------
99.2 Debtor's Monthly Financial Report 5
for the period from May 3, 1998
to May 30, 1998
<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 May 3, 1998 TO May 30, 1998 (5-30-98 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 May 3, 1998 and Ending May 30, 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 $ 739,104.42 $ 106,714.48
-------------- ----------------
2. Receipts:
A. Cash and Credit Card Sales 12,990.31 1,003,482.54
Less: Cash and Credit Card Refunds (1,333.83)
-------------- ----------------
Net Cash and Credit Card Sales 12,990.31 1,002,148.71
-------------- ----------------
B. Collection in Post-petition A/R 10,360.65 202,743.39
C. Collection on Pre-petition A/R 3,128.89 285,811.83
D. Other Receipts (Schedule 2A) 17,142.61 71,041.79
E. Deposits From Account Sweeps 426,571.28 2,449,865.92
F. Less Disbursement Sweeps (426,571.28) (2,449,023.33)
G. Auction sales-held in bankurptcy atty trust
account 3,500.63 338,075.63
-------------- ----------------
3. Total Receipts 47,123.09 1,900,663.94
-------------- ----------------
4. Total Cash Available for Operations(1+3) 786,227.51 2,007,378.42
-------------- ----------------
5. Disbursements:
A. U.S. Trustee Quarterly Fees 1,250.00 5,000.00
B. Net Payroll (See Note 1 below) 39,896.29 360,617.13
C. Payroll Taxes Paid (See Note 1 below) 14,944.60 135,647.48
D. Sales and Use Taxes 5,526.52 45,981.36
E. Other Taxes --
F. Rent 12,730.99 138,299.21
G. Other Leases (attachment 3) 33,302.96
H. Telephone 5,129.50 30,857.30
I. Utilities 129.57 15,294.58
J. Travel and Entertainment 5,772.22 29,030.99
K. Vehicle Expenses --
L. Office Supplies 5,320.61
M. Advertising 22,796.89
N. Insurance (attachment 7) 1,824.90 37,327.06
O. Purchases of Fixed Assets --
P. Purchases of Inventory 12,584.20 102,215.14
Q. Manufacturing Supplies --
R. Repairs and Maintenance 1,604.19
S. Payments to Secured Creditors 281,499.96
T. Other Operating Expenses(Schedule 2B) 10,247.21 86,392.05
-------------- ----------------
6. Total Cash Disbursements 110,036.00 1,331,186.91
-------------- ----------------
7. Ending Cash Balance (4-6) $ 676,191.51 $ 676,191.51
============== ================
</TABLE>
Note 1 - Represents payments for pay periods ended 4-26-98 and 5-23-98
which includes final paychecks and vacation for operating wind-down
team (i.e. store operations function - 4 persons, and Information
Systems function - 3 persons) which represents approximately
$20,000 in non-recurring payroll.
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 12th day of June, 1998. Signed: /s/ Thomas H. Hicks
------------------------------------------
Thomas H. Hicks, CEO, CFO
Page 2 of 20
<PAGE> 3
Schedule 2A
Monthly Financial Report for Business
For the Period Beginning May 3, 1998 and Ending May 30, 1998
(fiscal month per books)
Other Receipts Detail
<TABLE>
<CAPTION>
ACCOUNT DATE CHECK # RECEIVED FROM PURPOSE DEPOSIT
- ------- ---- ------- ------------- ------- -------
<S> <C> <C> <C> <C>
op 5/4/98 Deposit First Union Bank Interest $ 158.77
op 5/5/98 Deposit First Union Bank Interest 53.38
op 5/6/98 Deposit First Union Bank Interest 48.97
op 5/7/98 Deposit Telecheck NSF Refund 348.69
op 5/7/98 Deposit Various Cobra 525.68
op 5/7/98 Deposit FPL Deposit Refund 1,141.84
op 5/7/98 Deposit Juvenile Court Theft Recovery 199.95
op 5/7/98 Deposit First Union Bank Interest 48.73
op 5/8/98 Deposit First Union Bank Interest 47.69
op 5/11/98 Deposit First Union Bank Interest 147.99
op 5/12/98 Deposit First Union Bank Interest 51.09
op 5/13/98 Deposit First Union Bank Interest 52.00
op 5/14/98 Deposit First Union Bank Interest 51.44
op 5/15/98 Deposit First Union Bank Interest 50.30
op 5/18/98 Deposit Various Cobra 444.01
op 5/18/98 Deposit Utility Deposit Refund 22.37
op 5/18/98 Deposit First Union Bank Interest 151.13
op 5/19/98 Deposit First Union Bank Interest 48.28
op 5/20/98 Deposit First Union Bank Interest 47.38
op 5/21/98 Deposit First Union Bank Interest 46.85
op 5/22/98 Deposit First Union Bank Interest 47.14
op 5/26/98 Deposit First Union Bank Interest 182.36
op 5/27/98 Deposit First Union Bank Interest 46.76
op 5/28/98 Deposit Telecheck Telecheck Refund 3,022.69
op 5/28/98 Deposit First Union Bank Interest 47.28
op 5/29/98 Deposit First Union Bank Interest 46.89
op 5/30/98 Deposit Bobby Allison Cellular
Systems of FL Equip Sales 10,000.00
op 5/30/98 Deposit Other Other Receipts 62.95
-----------
$ 17,142.61
===========
</TABLE>
Page 3 of 20
<PAGE> 4
Schedule 2B
Monthly Financial Report for Business
For the Period Beginning May 3, 1998 and Ending May 30, 1998
(fiscal month per books)
Other Operating Expenses Detail
<TABLE>
<CAPTION>
ACCOUNT DATE CHECK # PAYEE PURPOSE WITHDRAWL
- ------- ---- ------- ------ ------- ---------
<S> <C> <C> <C> <C> <C>
op 5/4/98 012782 Syscom Computers Printer Connector $ 285.00
op 5/5/98 Debit Merchant Discount Credit Card Processing Fees 952.75
op 5/5/98 Debit Merchant Discount Credit Card Processing Fees 688.15
op 5/5/98 Debit Merchant Discount Credit Card Processing Fees 126.75
op 5/5/98 Debit Merchant Fee Credit Card Processing Fees 56.75
op 5/5/98 Debit Merchant Fee Credit Card Processing Fees 40.77
op 5/5/98 Debit Merchant Fee Credit Card Processing Fees 15.50
op 5/5/98 Debit Merchant Interchange Credit Card Processing Fees 29.62
op 5/5/98 Debit Merchant Interchange Credit Card Processing Fees 16.70
pay 5/5/98 Debit Stop Payment Charge Bank Fees 29.00
op 5/6/98 Debit Novus Fee Credit Card Processing Fees 84.46
op 5/7/98 012794 Aqua Springs Water Coffee Service 22.00
op 5/7/98 012795 Designs Art & Framing Picture Repair 16.96
op 5/7/98 012796 Reliable Cable Wiring at New office 127.20
op 5/7/98 012797 Tropical Home & Garden Pest Pest Control 31.80
op 5/7/98 012799 Cel-Tec Custom Install 250.00
op 5/7/98 012800 Web Store Internet Site 25.00
op 5/7/98 012801 Commercial Printers, Inc. Printing 29.15
op 5/8/98 012802 Void Void --
op 5/11/98 012644 Maharaj Adalgiza Customer Refund (84.79)
op 5/12/98 012806 Maharaj Adalgiza Customer Refund 84.79
op 5/12/98 Debit Commercial Service Charges Bank Fees 720.91
op 5/15/98 012814 Data Base Customer Refund 142.75
op 5/15/98 012815 American Stock Transfer Co. Transfer Agent 500.00
op 5/15/98 012816 Charles E. Simon & Co. Report Preparation 135.00
op 5/15/98 012818 Telecheck Void --
op 5/15/98 012819 United Parcel Service Freight 431.69
op 5/15/98 012820 CGI-Ft. Lauderdale Freight 63.50
pay 5/15/98 Debit ADP Fees Payroll Processing 55.78
op 5/18/98 012823 U.S. Postmaster Stamps 92.00
op 5/19/98 012825 Office Depot Office Supplies 79.47
op 5/19/98 Debit Telecheck Check Processing Fees 3,757.96
op 5/21/98 012828 Alpha Graphics Printing 34.08
op 5/21/98 012830 American BankNote Printing 1,000.00
op 5/22/98 012837 Federal Express Corporation Freight 10.75
op 5/22/98 012839 PR Newswire, Inc. Press Releases 90.00
op 5/22/98 012842 CGI-Ft. Lauderdale Freight 90.25
op 5/26/98 012847 U.S. Postmaster Stamps 64.00
op 5/29/98 012860 CGI-Ft. Lauderdale Freight 93.75
pay 5/29/98 Debit ADP Fees Payroll Processing 57.76
-----------
$ 10,247.21
===========
</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 May 3, 1998 and Ending May 30, 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: $ 87,633.16
Plus: Current Month New Billings: 20,138.35
Less: Collections During Month (13,489.54)
Accounts Written off (5,364.56)
--------------
End of Month Balance: $ 88,917.41
==============
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 05/30/98
<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 1,217.50 352.00 865.50
Bell South Mobility-Commission 4,805.00 4,805.00
Bobby Allison Cellular 4,177.00 4,177.00
Nextel-Commission 1,600.00 1,600.00
-------------------------------------------------------------------
Subtotal 11,799.50 5,777.00 5,157.00 865.50 0.00
-------------------------------------------------------------------
A/R - In-House
School Board of Dade County 3,313.22 3,313.22
GMAC Mortgage 440.96 440.96
-------------------------------------------------------------------
Subtotal 3,754.18 0.00 0.00 0.00 3,754.18
-------------------------------------------------------------------
A/R - Activation
Bell South Mobility - Activation 7,875.00 3,625.00 4,250.00
Sprint - Activation 17,419.17 17,419.17
-------------------------------------------------------------------
Subtotal 25,294.17 0.00 0.00 3,625.00 21,669.17
-------------------------------------------------------------------
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 21,412.56 11,000.00 10,412.56
-------------------------------------------------------------------
Subtotal 21,412.56 11,000.00 10,412.56 0.00 0.00
-------------------------------------------------------------------
GRAND TOTAL ACCOUNTS RECEIVABLE $ 88,917.41 $ 16,777.00 $15,569.56 $ 4,490.50 $52,080.36
===================================================================
</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 May 3, 1998 and Ending May 30, 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) $ 8,907.80
Plus: New Indebtedness Incurred This Month 152,315.58
Less: Amount Paid on Total Accounts Payable 50,819.88
-------------
Ending Month Balance $ 110,403.50
=============
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
<TABLE>
<CAPTION>
<S> <C> <C>
Date 06/09/98 09:32am 2Connect Express, Inc.
05-99-197 Period Cutoff Aged AP (03.681. - Historical Detail Aged by Due Date Rept 03.681
Period: 04-99 Aging Date: 05/30/98
</TABLE>
<TABLE>
<CAPTION>
1 31 61
Vendor/ Name/ Vendor Status/ Disc Due Pay To To To
Doc Type Ref Nbr Inv Nbr Inv Dat Doc Status Date Date Date Current 30 60 90 Over 90 Balance
- -------- ------- ------- ------- ---------- ---- ---- ---- ------- -- -- -- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4000RENAIS Renaissance Partners, LC O
CK 012852 004906 C (949.71) (949.71)
Vendor Total (949.71) -- -- -- -- (949.71)
4000STORAL Stor All O
CK 012853 004879 C (148.40) (148.40)
CK 012853 004879 C (118.72) (118.72)
Vendor Total (267.12) -- -- -- -- (267.12)
4001CORALC Coral CS/Ltd. Associates O
CK 012866 004908 C (7,376.31) (7,376.31)
Vendor Total (7,376.31) -- -- -- -- (7,376.31)
5000BOWNE Bowne of Atlanta O
VO 004909 1-98040578-0 5/20/98 A 5/30/98 6/19/98 5/30/98 720.25 -- -- -- -- 720.25
VO 004910 1-98040668-0 5/21/98 A 5/31/98 6/20/98 5/31/98 734.02 -- -- -- -- 734.02
VO 004934 1-98050171-0 6/4/98 A 6/14/98 7/4/98 6/14/98 299.98 -- -- -- -- 299.98
Vendor Total 1,754.25 -- -- -- -- 1,754.25
5000NEXTEL Nextel O
VO 004935 5191-8 6/3/98 A 6/3/98 6/18/98 6/18/98 75.36 -- -- -- -- 75.36
Vendor Total 75.36 -- -- -- -- 75.36
5500FPL Florida Power & Light O
VO 004873 71563-09556 5/19/98 A 5/19/98 6/9/98 6/9/98 400.18 -- -- -- -- 400.18
Vendor Total 400.18 -- -- -- -- 400.18
5C000CGI CGI-Ft. Lauderdale O
VO 004925 362812 5/27/98 A 5/27/98 6/11/98 6/11/98 43.75 -- -- -- -- 43.75
VO 004933 366301 6/3/98 A 6/3/98 6/18/98 6/18/98 8.70 -- -- -- -- 8.70
Vendor Total 52.45 -- -- -- -- 52.45
6500HUMANA Humana Health Insurance O
CK 012861 004894 C (1,824.90) -- -- -- -- (1,824.90)
Vendor Total (1,824.90) -- -- -- -- (1,824.90)
6500KAHNCA Kahn Carlin O
VO 004827 050198 5/1/98 H 5/1/98 5/1/98 5/1/98 -- 4,666.62 -- -- -- 4,666.62
Vendor Total -- 4,666.62 -- -- -- 4,666.62
6500KEMPER Kemper Insurance
Companies O
VO 004703 COR 000779 3/1/98 A 3/1/98 6/9/98 6/9/98 2,562.00 -- -- -- -- 2,562.00
Vendor Total 2,562.00 -- -- -- -- 2,562.00
7000PANAPA Pana-Pacific O
CK 012865 004907 C (56.80) (56.80)
Vendor Total (56.80) -- -- -- -- (56.80)
7000SEDINT SED International, Inc. O
</TABLE>
Page 8 of 20
<PAGE> 9
<TABLE>
<CAPTION>
<S> <C> <C>
Date 06/09/98 09:32am 2Connect Express, Inc.
05-99-197 Period Cutoff Aged AP (03.681. - Historical Detail Aged by Due Date Rept 03.681
Period: 04-99 Aging Date: 05/30/98
</TABLE>
<TABLE>
<CAPTION>
1 31 61
Vendor/ Name/ Vendor Status/ Disc Due Pay To To To
Doc Type Ref Nbr Inv Nbr Inv Dat Doc Status Date Date Date Current 30 60 90 Over 90 Balance
- -------- ------ ------- ------- ---------- ---- ---- ---- ------- -- -- -- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
VO 004911 1-145550701 5/27/98 A 5/27/98 6/6/98 6/6/98 1,222.00 -- -- -- -- 1,222.00
Vendor Total 1,222.00 -- -- -- -- 1,222.00
7000SPRINT Sprint PCS O
VO 004489 030598 3/5/98 H 3/5/98 3/5/98 3/5/98 -- -- -- 342.00 -- 342.00
VO 004708 WBE-028087 1/29/97 H 1/29/97 2/28/9 2/28/97 -- -- -- -- 684.00 684.00
Vendor Total -- -- -- 342.00 684.00 1,026.00
7200ICANEC ICanect H
VO 004183 013198 1/31/98 A 1/31/98 3/2/98 3/2/97 -- -- -- 269.34 -- 269.34
Vendor Total -- -- -- 269.34 -- 269.34
90003COM 3Com Credit
Corporation O
VO 004578 00008985 4/1/98 H 4/1/98 4/1/98 4/1/98 -- -- 208.00 -- -- 208.00
Vendor Total -- -- 208.00 -- -- 208.00
9000KELLEY Kelley Drye &
Warren, LLP O
VO 004858 1302933 5/15/98 H 5/15/98 5/15/98 5/15/98 -- 101,842.14 -- -- -- 101,842.14
Vendor Total -- 101,842.14 -- -- -- 101,842.14
9000KPMG KPMG Peat Marwick O
VO 004357 01821 2/17/98 H 2/17/98 3/19/98 3/19/98 -- -- -- 6,800.00 -- 6,800.00
Vendor Total -- -- -- 6,800.00 -- 6,800.00
Report Total (4,408.60) 106,508.76 208.00 7,411.34 684.00 110,403.50
</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.
Page 9 of 20
<PAGE> 10
ATTACHMENT #3
INVENTORY AND FIXED ASSETS REPORT
- --------------------------------------------------------------------------------
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
For the Period Beginning May 3, 1998 and Ending May 30, 1998 (fiscal month per
books)
INVENTORY REPORT
Inventory Balance at Petition Date: $ 2,191,354
============
Inventory Reconciliation:
Inventory Balance at Beginning of Month (Period) $ 25,373
Inventory Purchased During Month (Period) 13,806
Inventory Used or Sold: (12,202)
Less Inventory liquidations via court approved auctions
Less Inventory writedowns to liquidation values
------------
Inventory On-Hand at End of Month (Period) $ 26,977
============
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
============
Note 1 - The majority of fixed assets were contracted in April to be
sold, therefore no depreciation was recorded for April or May.
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 10 of 20
<PAGE> 11
ATTACHMENT #4
MONTHLY BANK ACCOUNT RECONCILIATION
Name of Debtor: 2CONNECT EXPRESS, INC. Case Number: 98-20169-BKC-RBR
For the Period Beginning May 3, 1998 and Ending May 30, 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
-------------------------------
Beginning Balance $ 427,278.30
Total of Deposits Made 43,622.46
Amount of Cash and Credit Cards Refunds --
Amount of Deposits from Account Sweeps (See Note Below) 426,571.28
Amount of Receipts from Account Sweeps (See Note Below) (426,571.28)
Amount of Cash funding Payroll Account (63,571.28)
Total Amount of Checks Written (56,091.27)
---------------
Closing Balance $ 351,238.21
===============
Number of 1st Check Written This Period: 012782
Number of Last Check Written This Period: 012866
------
Total Number of Checks Written or voided This Period: 84
======
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 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 May 3, 1998 and Ending May 30, 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 (22,748.88)
Total of Deposits Made 63,571.28
Total Amount of Checks Written (53,944.73)
Service Charges --
----------
Closing Balance (13,122.33) -- Since this is a Zero Balance account, the
========== ending negative balance represents
outstanding checks.
</TABLE>
Number of 1st Check Written This Period: 1889
Number of Last Check Written This Period: 1918
--------
Total Number of Checks Written This Period: 29
========
INVESTMENT ACCOUNTS
Type of Negotiable Face Purchase Date of
Instrument Value Price Purchase
- ------------------ ----- --------- --------
None
Page 12 of 20
<PAGE> 13
ATTACHMENT #5
CHECK REGISTER
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
For the Period Beginning May 3, 1998 and Ending May 30, 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 Accout: 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>
5/4/98 012782 Syscom Computers Printer Connector $ 285.00
5/5/98 012783 Hotchkiss Enterprises Prorated Final Rent-Plantation 1,039.60
5/5/98 012784 Stor All Rent 118.72
5/5/98 012785 Lena Castellanos Net Pay 687.60
5/5/98 Debit Merchant Discount Credit Card Fees 952.75
5/5/98 Debit Merchant Discount Credit Card Fees 688.15
5/5/98 Debit Merchant Discount Credit Card Fees 126.75
5/5/98 Debit Merchant Fee Credit Card Fees 56.75
5/5/98 Debit Merchant Fee Credit Card Fees 40.77
5/5/98 Debit Merchant Fee Credit Card Fees 15.50
5/5/98 Debit Merchant Interchange Credit Card Fees 29.62
5/5/98 Debit Merchant Interchange Credit Card Fees 16.70
5/6/98 Debit Novus Fee Credit Card Fees 84.46
5/7/98 012786 Chuck Ainsworth Expenses 25.80
5/7/98 012787 Maria E. Bolden Expenses 162.23
5/7/98 012788 David G. Dees Expenses 14.10
5/7/98 012789 John Grandy Expenses 96.60
5/7/98 012790 Thomas H. Hicks Temporary living and miscellaneous expense 1,149.79
5/7/98 012791 Kevin Killoran Truck rental and mileage for store closings/
storage 2,082.24
5/7/98 012792 Jeanine C. Kinsey Expenses 150.00
5/7/98 012793 Nathan Rothman Expenses 94.30
5/7/98 012794 Aqua Springs Water Coffee Service 22.00
5/7/98 012795 Designs Art & Framing Picture Repair 16.96
5/7/98 012796 Reliable Cable Wiring at new office 127.20
5/7/98 012797 Tropical Home & Garden Pest Pest Control 31.80
5/7/98 012798 BellSouth Telephone 3,260.97
5/7/98 012799 Cel-Tec Cellular Install 250.00
5/7/98 012800 Web Store Internet Service 25.00
5/7/98 012801 Commercial Printers, Inc. Printing 29.15
5/8/98 012802 Void void --
5/8/98 012803 Richard Garepy Net Pay 351.10
5/11/98 012644 Maharaj Adalgiza Voided Check-Customer Refund (84.79)
5/11/98 012804 Direct Wireless Inventory 109.00
5/12/98 012805 Maria E. Bolden Moving supplies and storage boxes 265.10
5/12/98 012806 Maharaj Adalgiza Customer Refund 84.79
</TABLE>
Page 13 of 20
<PAGE> 14
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
5/12/98 012807 Recoton Inventory 313.48
5/12/98 Debit Commercial Service Charges Bank Fees 720.91
5/13/98 012808 Pana-Pacific Inventory 114.28
5/13/98 012809 Advanced Fox Cellular Inventory 143.65
5/14/98 012810 TT Systems Inventory 75.22
5/14/98 012811 Recoton Inventory 143.11
5/14/98 Debit Ora Electronics Inventory 139.66
5/15/98 012812 Thomas H. Hicks Travel to Bobby Allison for Due Diligence 1,225.77
5/15/98 012813 Don Smith Expenses 97.80
5/15/98 012814 Data Base Customer Refund 142.75
5/15/98 012815 American Stock Transfer Co. Transfer Agent 500.00
5/15/98 012816 Charles E. Simon & Co. Reports 135.00
5/15/98 012817 LDDS Worldcom Telephone 44.52
5/15/98 012818 Telecheck void --
5/15/98 012819 United Parcel Service Freight 431.69
5/15/98 012820 CGI-Ft. Lauderdale Freight 63.50
5/15/98 012821 Ora Electronics Inventory --
5/15/98 012822 Florida Department of Revenue Sales Tax 5,526.52
5/18/98 012823 U.S. Postmaster Stamps 92.00
5/18/98 012824 Bobby Allison Cellular Inventory 3,574.00
5/19/98 012825 Office Depot Office Supplies 79.47
5/19/98 Debit PrimeCo Inventory 1,098.75
5/19/98 Debit Telecheck Check Processing Fees (See Note 1) 3,757.96
5/20/98 012826 Direct Wireless Inventory 407.25
5/20/98 012826 Direct Wireless Inventory (407.25)
5/20/98 012827 AirData Communiciations, Inc. Inventory 2,390.00
5/21/98 012828 Alpha Graphics Printing 34.08
5/21/98 012829 Direct Wireless Inventory 387.15
5/21/98 012830 American BankNote Printing 1,000.00
5/22/98 012831 Go-Neo, LLC Inventory 240.00
5/22/98 012832 Go-Neo, LLC Inventory 120.00
5/22/98 012833 Pana-Pacific Inventory 403.15
5/22/98 012833 Pana-Pacific Inventory (403.15)
5/22/98 012834 Thomas H. Hicks Airfare to Bobby Allison for due diligence 212.04
5/22/98 012835 Hotchkiss Enterprises Rent 77.00
5/22/98 012836 Renaissance Partners, LC Rent 907.53
5/22/98 012837 Federal Express Corporation Freight 10.75
5/22/98 012838 LDDS Worldcom Telephone 101.64
5/22/98 012839 PR Newswire, Inc. Press Release 90.00
5/22/98 012840 City of Hollywood Utility Utilities 108.57
5/22/98 012841 Trescom International Telephone 65.65
5/22/98 012842 CGI-Ft. Lauderdale Freight 90.25
5/22/98 012843 PrimeCo Inventory --
5/22/98 012844 SmarTalk Inventory --
5/22/98 012845 Pana-Pacific Inventory 422.10
5/22/98 012846 United States Trustee Trustee Fees 1,250.00
5/22/98 Debit SmarTalk Inventory 288.00
5/26/98 012847 U.S. Postmaster Stamps 64.00
5/26/98 012848 Beeper To Go Inventory 587.00
5/26/98 Debit CellStar Inventory 356.22
5/28/98 012849 Beeper To Go Inventory 284.00
5/28/98 Debit CellStar Inventory 652.51
5/29/98 012850 Thomas H. Hicks Expenses 52.45
</TABLE>
Page 14 of 20
<PAGE> 15
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
5/29/98 012851 Jeanine C. Kinsey Expenses 144.00
5/29/98 012852 Renaissance Partners, LC Rent 949.71
5/29/98 012853 Stor All Rent 267.12
5/29/98 012854 BellSouth Mobility Cellular Service 39.78
5/29/98 012855 Hancock Moving & Storage Rent-Miami Whse Storage 1,995.00
5/29/98 012856 Nextel Cellular Service 29.39
5/29/98 012857 BellSouth Telephone 916.18
5/29/98 012858 Coral Springs Improvement Dist Utilities 21.00
5/29/98 012859 Trescom International Telephone 671.37
5/29/98 012860 CGI-Ft. Lauderdale Freight 93.75
5/29/98 012861 Humana Health Insurance Insurance 1,824.90
5/29/98 012862 Bobby Allison Cellular Inventory 983.70
5/29/98 012863 CellStar Inventory --
5/29/98 012864 Ora Electronics Inventory --
5/29/98 012865 Pana-Pacific Inventory 56.80
5/29/98 012866 Coral CS/Ltd. Associates Rent 7,376.31
5/29/98 Debit Ora Electronics Inventory 105.57
-------------
$ 56,091.27
=============
</TABLE>
Note 1 - Telecheck check processing fees included a prepetition
deduction of $3,022.69 which was refunded - See Other Receipts
Detail.
Page 15 of 20
<PAGE> 16
ATTACHMENT #5
CHECK REGISTER
Name of Debtor: 2Connect Express, Inc. Case Number: 98-20169-BKC-RBR
For the Period Beginning May 3, 1998 and Ending May 30, 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 Accoount: 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>
5/5/98 Debit Stop Payment Charge Bank Fees $ 29.00
5/8/98 1886 Castellanos, Lena Voided Check (687.60)
5/15/98 1889 Hicks, Thomas Net Pay 4,996.22
5/15/98 1890 Killoran, Kevin Net Pay 1,776.85
5/15/98 1891 Ainsworth, Charles Net Pay 2,026.42
5/15/98 1892 Dees, David Net Pay 379.05
5/15/98 1893 Rothman, Nathan Net Pay 1,138.79
5/15/98 1894 Bolden, Maria Net Pay 915.56
5/15/98 1895 Chalfant, Christopher Net Pay 3,264.41
5/15/98 1896 Kinsey, Jeanine Net Pay 800.48
5/15/98 1897 Hernandez, Zara Net Pay 513.84
5/15/98 1898 Kinsey, Matthew Net Pay 219.22
5/15/98 1899 Smith, Donald Net Pay 1,663.87
5/15/98 1900 Cohen, George Net Pay 755.48
5/15/98 1901 Cowan, Robert Net Pay 30.34
5/15/98 1902 Patierno, Joe Net Pay 129.34
5/15/98 1903 Pettineo, John Net Pay 351.45
5/15/98 1904 Silverman, Patricia Net Pay 1,146.77
5/15/98 1905 Sordelet, Claude Net Pay 576.58
5/15/98 1906 Grandy, John Net Pay 2,134.58
5/15/98 1907 Bryan, Melanie Net Pay 1,094.22
5/15/98 Debit ADP Fees Payroll Fees 55.78
5/15/98 Debit ADP Taxes Payroll Taxes 9,320.47
5/29/98 1908 Hicks, Thomas Net Pay 5,136.25
5/29/98 1909 Bolden, Maria Net Pay 915.57
5/29/98 1910 Chalfant, Christopher Net Pay 3,007.01
5/29/98 1911 Kinsey, Jeanine Net Pay 800.47
</TABLE>
Page 16 of 20
<PAGE> 17
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
5/29/98 1912 Smith, Donald Net Pay 1,663.86
5/29/98 1913 Cohen, George Net Pay 755.47
5/29/98 1914 Patierno, Joe Net Pay 228.12
5/29/98 1915 Pettineo, John Net Pay 143.83
5/29/98 1916 Silverman, Patricia Net Pay 1,287.17
5/29/98 1917 Sordelet, Claude Net Pay 599.77
5/29/98 1918 Bryan, Melanie Net Pay 1,094.20
5/29/98 Debit ADP Fees Payroll Fees 57.76
5/29/98 Debit ADP Taxes Payroll Taxes 5,624.13
-------------
$ 53,944.73
=============
</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 May 3, 1998 and Ending May 30, 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>
5/15/98 Florida Department of Revenue Consolidated Sales Tax Return for April, 1998 $ 5,526.52
5/15/98 IRS and Fla Dept of Rev PR taxes deposited by ADP 9,320.47
5/29/98 IRS and Fla Dept of Rev PR taxes deposited by ADP 5,624.13
------------
$ 20,471.12
============
</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 6/20/98 Consolidated Sales Tax Return for May, 1998 $ 886.96
=========
</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 May 3, 1998 and Ending May 30, 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 13,461.54
Kevin Killoran Secretary 2,517.30
<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 5 -- 11
Number Hired during Period -- -- -- -- 0
Number Terminated or Resigned during Period -- -- 1 -- 1
-----------------------------------------------------
Number of Employees on payroll at end of Period 4 2 4 0 10
=====================================================
</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
Roy Fabry Liability 7/9/98 Paid
Telephone (954) 767-6066
Reliance Insurance Company Kahn-Carlin & Company, Inc. QB8615829 Commercial Application,
Property, General
Liability, Business
Auto, Garage & Dealers,
Crime, Umbrella 10/9/98 Monthly
Kemper-American Motorists Ins. Kahn-Carlin & Company, Inc. 3BG01594400 Workers Compensation 10/9/98 Monthly
CAN Kahn-Carlin & Company, Inc. 0000685C Employment Related Prac L 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 May 3, 1998 and Ending May 30, 1998 (fiscal month per
books)
1. On May 8, 1998, 2Connect's primary cellular service provider unilaterally,
arbitrarily, and without notice, ceased all activations required under
their existing agreement with the Company. The Company, on May 9, 1998,
obtained services from a third party cellular telephone carrier in order to
satisfy its customers. The Company has commenced legal action through the
bankruptcy court for amounts due from it's previous cellular service
provider.
2. On May 22, 1998, the Company executed a Management Agreement with Bobby
Allison Cellular Systems of Florida, Inc. ("BAC"), whereby BAC will assume
the operation and responsibility for all expenses of the Company's one
remaining store located in Coral Springs Florida. The Management Agreement
is subject to approval by the bankruptcy court at a hearing scheduled for
June 16, 1998, whereby, if approved, the Management Agreement will become
effective June 18, 1998.
Page 20 of 20
