<PAGE>
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
December 24, 1998
Commission File Number: 0-22281
SCOOP, INC.
(Exact name of Registrant as specified in its charter)
Delaware 33-0726608
(State or other jurisdiction of (I.R.S. Employer ID No.)
incorporation or organization)
1800 Century Park East, Suite 600
Los Angeles, CA
90067
(Address of principal executive offices)
(Zip Code)
(949) 225-6000
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
<PAGE>
INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. Other Events.
Scoop, Inc. has filed with the United States Bankruptcy Court
for the Central District of California its monthly operating
reports for the months ended August 31, 1998, September 30, 1998
and October 31, 1998. A copy of these operating reports are
attached hereto as Exhibits 99.1, 99.2 and 99.3.
Item 7. Exhibits
EXHIBIT
Exhibit 99.1 -- Monthly operating report for the month ended August 31, 1998
Exhibit 99.2 -- Monthly operating report for the month ended September 30,
1998
Exhibit 99.3 -- Monthly operating report for the month ended October 31, 1998
2
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signedf on its
behalf by the undersigned hereunto duly authorized.
SCOOP, INC.
Date: December 23, 1998
/s/ Rand Bleimeister
--------------------------------
Rand Bleimeister
Chief Executive Officer, President
Chief Financial Officer and Chairman of the Board
/s/ Kristy Allan
---------------------------------
Kristy Allan
Principal Accounting Officer
3
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT PAGE
- ------- ----
<S> <C>
Exhibit 99.1 -- Monthly operating report for the month ended
August 31, 1998
Exhibit 99.2 -- Monthly operating report for the month ended
September 30, 1998
Exhibit 99.3 -- Monthly operating report for the month ended
October 31, 1998
</TABLE>
4
<PAGE>
-----------------------------------
Office of the United States Trustee
-----------------------------------
- --------------------------------------------------------------------------------
In re:
DEBTOR IN POSSESSION OPERATING REPORT
SCOOP, INC., a Delaware corporation
Report Number: 1 Page 1 of 3
---
Debtor. For the period FROM: 8/1/98
-----------------
TO: 8/31/98
-----------------
- ----------------------------------------
Chapter 11 Case No:
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
1. Profit and Loss Statement (ACCRUAL BASIS ONLY)
A. Related to Business Operations:
Gross Sales 267507.43
--------------------
Less: Sales Returns and Discounts 0.00
--------------------
Net Sales 267507.43
--------------------
Less: Cost of Goods Sold:
Beginning Inventory at Cost NO INVENTORY N/A
--------------------
Add: Purchases N/A
--------------------
Less: Ending Inventory at Cost N/A
--------------------
Cost of Goods Sold 155,460.54
--------------------
Gross Profit 112,046.89
------------------
Other Operating Revenues (Specify) 0.00
------------------
Less: Operating Expenses:
Officer Compensation 21,666.68
--------------------
Salaries and Wages -- Other Employees 43,033.05
--------------------
Total Salaries and Wages 64,699.73
--------------------
Employee Benefits and Pensions 598.35
--------------------
Payroll Taxes 3,356.31
--------------------
Real Estate Taxes
--------------------
Federal and State Income Taxes
--------------------
Total Taxes 3,356.31
--------------------
Rent and Lease Exp. (Real Property and Personal Property) 532.54
--------------------
Interest Expense (Mortgage, Loan, etc.) 481.18
--------------------
Insurance
--------------------
Automobile Expense
--------------------
Utilities (Gas, Electricity, Water, Telephone, etc.) 1,851.41
--------------------
Depreciation and Amortization
--------------------
Repairs and Maintenance
--------------------
Advertising
--------------------
Supplies, Office Expenses, Photocopies, etc. 5,746.05
--------------------
Bad Debts
--------------------
Miscellaneous Operating Expenses (See attached) 14,655.02
--------------------
Total Operating Expenses 91,920.l59
--------------------
Net Gain/Loss from Business Operations 20,126.30
------------------
B. Not Related to Business Operations:
Income:
Interest Income
--------------------
Other Non-Operating Revenues (Specify)
--------------------
Gross Proceeds on Sale of Assets (Deposit on Sale) 50,000
--------------------
Less: Original Cost of Assets plus Expenses of Sale
--------------------
Net Gain/Loss of Sale of Assets 50,000
--------------------
Total Non-Operating Income 50,000
------------------
Expenses Not Related to Business Operations:
Legal and Professional Fees (Lobel & Opera) 54,883.43
--------------------
Other Non-Operating Expenses (photocopy charge)* 1,789.30
--------------------
Total Non-Operating Expenses 56,672.73
------------------
NET INCOME / LOSS FOR PERIOD 13,453.57
------------------
</TABLE>
- --------------------------------------------------------------------------------
Revised April 1989 OPERATING REPORT UST-4
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
DEBTOR IN POSSESSION OPERATING REPORT NO: ___1__ Page 2 of 3
- --------------------------------------------------------------------------------
2. Aging of Accounts Payable and Accounts Receivable (exclude pre-petition
accounts payable):
<TABLE>
<CAPTION>
--------------------------------- ------------------------------
Accounts Payable Accounts Receivable
--------------------------------- ------------------------------
<S> <C> <C> <C>
--------------------------------- ------------------------------
Current Under 30 Days 106,331.83 183,815.52
--------------------------------- ------------------------------
Overdue 31 - 60 Days 101,262.22
--------------------------------- ------------------------------
Overdue 61 - 90 Days 35,942.51
--------------------------------- ------------------------------
Overdue 91 - 120 Days 32,553.96
--------------------------------- ------------------------------
Overdue Over 121 Days
--------------------------------- ------------------------------
TOTAL 106,331.83 353,574.21
--------------------------------- ------------------------------
</TABLE>
3. State of Status of Payments to Secured Creditors and Lessors:
<TABLE>
<CAPTION>
------------------------------ ---------------------- ---------------- ----------------- --------------------------------
Frequency Post-Petition
of Payments Per Amount Next Payments Not Made*
Creditor/ Contract / Lease of Each Payment
Lessor (i.e., mo., qtr.) Payment Due Number Amount
------------------------------ ---------------------- ---------------- ----------------- ----------------- --------------
<S> <C> <C> <C> <C> <C>
Village Plaza Associates mo 7,607 9/1/98 1 7,607
------------------------------ ---------------------- ---------------- ----------------- ----------------- --------------
------------------------------ ---------------------- ---------------- ----------------- ----------------- --------------
------------------------------ ---------------------- ---------------- ----------------- ----------------- --------------
------------------------------ ---------------------- ---------------- ----------------- ----------------- --------------
</TABLE>
*Explanation for Non-Payment: Lack of funds. The hearing on the sale of
assets was heard 8/31/98 and the proceeds from
the sale have not been disbursed to the Debtor.
-----------------------------------------------
- --------------------------------------------------------------------------------
4. Tax Liability:
Gross Payroll Expense for Period: $ 3,356.31
---------------------
Gross Sales for Period Subject to Sales Tax$
76,893.85
---------------------
<TABLE>
---------------------- ----------------------- --------------------
Post-Petition
taxes Still
Date Paid Amount Paid* Owing
---------------------- ----------------------- --------------------
<S> <C> <C> <C>
Federal Payroll and Withholding Taxes 9/21/98 $18,497.87 $4.10
---------------------- ----------------------- --------------------
State Payroll and Withholding Taxes 9/21/98 3,405.39 0.00
---------------------- ----------------------- --------------------
State Sales and Use Taxes 9/28/98 5,959.00 0.00
---------------------- ----------------------- --------------------
Real Property Taxes
---------------------- ----------------------- --------------------
</TABLE>
* Attach photocopies of depository receipts from taxing authorities
or financial institutions to verify that such deposits or payments
have been made.
** Attached receipt for payment of payroll taxes in the amount of
$21,677.43 includes payroll tax deposit for final payroll at 9/15/98.
$3,179.56 is for September period.
5. Insurance Coverage:
SEE ATTACHED SCHEDULE
<TABLE>
<CAPTION>
------------------- ------------------ ------------------ ----------------
Carrier / Amount Policy Premium
Agent of Expiration Paid Through
Name Coverage Date Date
------------------- ------------------ ------------------ ----------------
<S> <C> <C> <C> <C>
Worker's Compensation
------------------- ------------------ ------------------ ----------------
Liability
------------------- ------------------ ------------------ ----------------
Fire and Extended Coverage
------------------- ------------------ ------------------ ----------------
Property
------------------- ------------------ ------------------ ----------------
Theft
------------------- ------------------ ------------------ ----------------
Life (Beneficiary: )
---------------------- ------------------- ------------------ ------------------ ----------------
Vehicle
------------------- ------------------ ------------------ ----------------
Other (Specify):
---------------------- ------------------- ------------------ ------------------ ----------------
------------------------------------------ ------------------- ------------------ ------------------ ----------------
------------------------------------------ ------------------- ------------------ ------------------ ----------------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
DEBTOR IN POSSESSION OPERATING REPORT NO: _____ Page 3 of 3
- --------------------------------------------------------------------------------
6. Questions:
A. Has the Debtor in Possession provided compensation to any
officers, directors, shareholders, or other principals without
the approval of the Office of the United States Trustee?
/ / Yes Explain:
----------------------------------------------
/ / No
B. Has the Debtor in Possession, subsequent to the filing of the
petition, made any payments on its pre-petition unsecured debt,
except as have been authorized by the Court:
/ / Yes Explain:
----------------------------------------------
/ / No
7. Statement of Unpaid Professional Fees (Post-Petition Amounts ONLY)
<TABLE>
<CAPTION>
---------------------------------------- ------------------------------ --------------------------
State Type of Total Post-
Professional Petition Amount
Name of Professional (Attorney/Accountant/etc.) Unpaid
---------------------------------------- ------------------------------ --------------------------
<S> <C> <C>
---------------------------------------- ------------------------------ --------------------------
---------------------------------------- ------------------------------ --------------------------
---------------------------------------- ------------------------------ --------------------------
---------------------------------------- ------------------------------ --------------------------
---------------------------------------- ------------------------------ --------------------------
</TABLE>
8. Narrative Report of Significant Events and Events out of the Ordinary Course
of Business: (ATTACH SEPARATE SHEET IF NECESSARY)
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
9. Quarterly Fees: (This Fee must be paid to the United States Trustee
every calendar quarter)
<TABLE>
<CAPTION>
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
Quarterly Total Quarterly
Period Disbursements Quarterly Date Amount Check Fee Still
Ending For Quarter Fee Paid Paid No. Owing
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
<S> <C> <C> <C> <C> <C> <C>
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
</TABLE>
I, (Name/Title: Kristy Allan, Chief Accounting Officer),
----------------------------------------
declare under penalty of perjury that the information contained in the above
Debtor in Possession Operating Report is true and complete to the best of my
knowledge.
Dated: September 24, 1998
--------------------------
/s/ Kristy Allan
------------------------------------------
Debtor in Possession or Trustee
<PAGE>
-------------------------------------------
Office of the United States Trustee
--------------------------------------------
- --------------------------------------------------------------------------------
In re:
DEBTOR IN POSSESSION OPERATING REPORT
SCOOP, INC., a Delaware corporation
Report Number: 2 Page 1 of 3
---
Debtor. For the period FROM: 9/1/98
------------------
TO: 9/30/98
------------------
- --------------------------------------
Chapter 11 Case No: SA 98-20799 RA
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1. Profit and Loss Statement (ACCRUAL BASIS ONLY)
A. Related to Business Operations:
Gross Sales 97,280.10
--------------------
Less: Sales Returns and Discounts 0
--------------------
Net Sales 97,280.10
--------------------
Less: Cost of Goods Sold:
Beginning Inventory at Cost NO INVENTORY N/A
--------------------
Add: Purchases N/A
--------------------
Less: Ending Inventory at Cost N/A
--------------------
Cost of Goods Sold 62,522.36
--------------------
Gross Profit 34,757.74
------------------
Other Operating Revenues (Specify) 0
------------------
Less: Operating Expenses:
Officer Compensation 11,913.00
--------------------
Salaries and Wages -- Other Employees 4,512.00
--------------------
Total Salaries and Wages 16,425.00
--------------------
Employee Benefits and Pensions 399.97
--------------------
Payroll Taxes 210.48
--------------------
Real Estate Taxes
--------------------
Federal and State Income Taxes
--------------------
Total Taxes 210.48
--------------------
Rent and Lease Exp. (Real Property and Personal Property) 5,030.00
--------------------
Interest Expense (Mortgage, Loan, etc.) 15.04
--------------------
Insurance
--------------------
Automobile Expense
--------------------
Utilities (Gas, Electricity, Water, Telephone, etc.) 629.64
--------------------
Depreciation and Amortization 0
--------------------
Repairs and Maintenance 275.00
--------------------
Advertising 0
--------------------
Supplies, Office Expenses, Photocopies, etc. 1,838.63
--------------------
Bad Debts 0
--------------------
Miscellaneous Operating Expenses (See attached) 6,106.15
--------------------
Total Operating Expenses 30,929.91
--------------------
Net Gain/Loss from Business Operations 3,827.83
------------------
B. Not Related to Business Operations:
Income:
Interest Income
--------------------
Other Non-Operating Revenues (Specify)
--------------------
Gross Proceeds on Sale of Assets 1,525,000.00
--------------------
Less: Original Cost of Assets plus Expenses of Sale N/A
--------------------
Net Gain/Loss of Sale of Assets
--------------------
Total Non-Operating Income 1,525,000.00
------------------
Expenses Not Related to Business Operations:
Legal and Professional Fees (Lobel & Opera) 31,914.23
--------------------
Other Non-Operating Expenses (photocopy charge)* 975.83
--------------------
Total Non-Operating Expenses 32,890.06
------------------
NET INCOME / LOSS FOR PERIOD 1,495,937.77
------------------
</TABLE>
- --------------------------------------------------------------------------------
Revised April 1989 OPERATING REPORT UST-4
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
DEBTOR IN POSSESSION OPERATING REPORT NO: ___2__ Page 2 of 3
- --------------------------------------------------------------------------------
2. Aging of Accounts Payable and Accounts Receivable (exclude pre-petition
accounts payable):
<TABLE>
<CAPTION>
--------------------------------- ------------------------------
Accounts Payable Accounts Receivable
--------------------------------- ------------------------------
<S> <C> <C>
Current Under 30 Days 21,429 74,933
--------------------------------- ------------------------------
Overdue 31 - 60 Days
--------------------------------- ------------------------------
Overdue 61 - 90 Days
--------------------------------- ------------------------------
Overdue 91 - 120 Days
--------------------------------- ------------------------------
Overdue Over 121 Days
--------------------------------- ------------------------------
TOTAL 21,429 74,933
--------------------------------- ------------------------------
</TABLE>
3. State of Status of Payments to Secured Creditors and Lessors:
<TABLE>
<CAPTION>
------------------------------ ---------------------- ---------------- ----------------- --------------------------------
Frequency Post-Petition
of Payments Per Amount Next Payments Not Made*
Creditor/ Contract / Lease of Each Payment
Lessor (i.e., mo., qtr.) Payment Due Number Amount
------------------------------ ---------------------- ---------------- ----------------- --------------------------------
<S> <C> <C> <C> <C> <C>
Village Plaza Associates mo 7,607 none 2 15,214
------------------------------ ---------------------- ---------------- ----------------- ----------------- --------------
------------------------------ ---------------------- ---------------- ----------------- ----------------- --------------
------------------------------ ---------------------- ---------------- ----------------- ----------------- --------------
------------------------------ ---------------------- ---------------- ----------------- ----------------- --------------
</TABLE>
*Explanation for Non-Payment: Lack of funds. The hearing on the sale of assets
was heard 8/31/98 and the proceeds from the sale
have not been disbursed to the Debtor.
-------------------------------------------------
-----------------------------------------------------------------------
4. Tax Liability:
Gross Payroll Expense for Period: $ 210.48
------------------
Gross Sales for Period Subject to Sales Tax $28,211.20
---------------
<TABLE>
<CAPTION>
---------------------- ----------------------- --------------------
Post-Petition
taxes Still
Date Paid Amount Paid* Owing
---------------------- ----------------------- --------------------
<S> <C> <C> <C>
Federal Payroll and Withholding Taxes 1,552.81
---------------------- ----------------------- --------------------
State Payroll and Withholding Taxes 299.03
---------------------- ----------------------- --------------------
State Sales and Use Taxes
---------------------- ----------------------- --------------------
Real Property Taxes
---------------------- ----------------------- --------------------
</TABLE>
* Attach photocopies of depository receipts from taxing authorities or
financial institutions to verify that such deposits or payments have
been made.
** Attached receipt for payment of payroll taxes in the amount of
$21,677.43 includes payroll tax deposit for final payroll at
9/15/98. $3,179.56 is for September period.
5. Insurance Coverage:
SEE ATTACHED SCHEDULE
<TABLE>
<CAPTION>
------------------- ------------------ ------------------ ----------------
Carrier / Amount Policy Premium
Agent of Expiration Paid Through
Name Coverage Date Date
------------------- ------------------ ------------------ ----------------
<S> <C> <C> <C> <C>
Worker's Compensation
------------------- ------------------ ------------------ ----------------
Liability
------------------- ------------------ ------------------ ----------------
Fire and Extended Coverage
------------------- ------------------ ------------------ ----------------
Property
------------------- ------------------ ------------------ ----------------
Theft
------------------- ------------------ ------------------ ----------------
Life (Beneficiary: )
---------------------- ------------------- ------------------ ------------------ ----------------
Vehicle
------------------- ------------------ ------------------ ----------------
Other (Specify):
---------------------- ------------------- ------------------ ------------------ ----------------
------------------------------------------ ------------------- ------------------ ------------------ ----------------
------------------------------------------ ------------------- ------------------ ------------------ ----------------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
DEBTOR IN POSSESSION OPERATING REPORT NO: _____ Page 3 of 3
- --------------------------------------------------------------------------------
6. Questions:
A. Has the Debtor in Possession provided compensation to any
officers, directors, shareholders, or other principals without
the approval of the Office of the United States Trustee?
/ / Yes Explain:
--------------------------------------------------
/X/ No
B. Has the Debtor in Possession, subsequent to the filing of the
petition, made any payments on its pre-petition unsecured debt,
except as have been authorized by the Court:
/ / Yes Explain:
--------------------------------------------------
/X/ No
7. Statement of Unpaid Professional Fees (Post-Petition Amounts ONLY)
<TABLE>
<CAPTION>
---------------------------------------- ------------------------------ --------------------------
State Type of Total Post-
Professional Petition Amount
Name of Professional (Attorney/Accountant/etc.) Unpaid
---------------------------------------- ------------------------------ --------------------------
<S> <C> <C>
Lobel & Opera Attorney
---------------------------------------- ------------------------------ --------------------------
---------------------------------------- ------------------------------ --------------------------
---------------------------------------- ------------------------------ --------------------------
---------------------------------------- ------------------------------ --------------------------
---------------------------------------- ------------------------------ --------------------------
</TABLE>
8. Narrative Report of Significant Events and Events out of the Ordinary Course
of Business: (ATTACH SEPARATE SHEET IF NECESSARY)
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
9. Quarterly Fees: (This Fee must be paid to the United States Trustee every
calendar quarter)
<TABLE>
<CAPTION>
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
Quarterly Total Quarterly
Period Disbursements Quarterly Date Amount Check Fee Still
Ending For Quarter Fee Paid Paid No. Owing
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
<S> <C> <C> <C> <C> <C> <C>
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
</TABLE>
I, (Name/Title: Kristy Allan, Chief Accounting Officer), declare under
--------------------------------------
penalty of perjury that the information contained in the above Debtor in
Possession Operating Report is true and complete to the best of my knowledge.
Dated: November 4, 1998
---------------------
/s/ Kristy Allan
-----------------------------------------
Debtor in Possession or Trustee
<PAGE>
-------------------------------------------------------------
Office of the United States Trustee
-------------------------------------------------------------
- --------------------------------------------------------------------------------
In re:
DEBTOR IN POSSESSION OPERATING REPORT
SCOOP, INC., a Delaware corporation
Report Number: 3 Page 1 of 3
---------
Debtor. For the period FROM: 10/1/98
------------------
TO: 10/31/98
------------------
- --------------------------------------
Chapter 11 Case No: SA 98-20799 RA
- --------------------------------------------------------------------------------
<TABLE>
<S> <S> <C> <C>
1. Profit and Loss Statement (ACCRUAL BASIS ONLY)
A. Related to Business Operations:
Gross Sales 0.00
--------------------
Less: Sales Returns and Discounts 1,222.90
--------------------
Net Sales (1,222.90)
--------------------
Less: Cost of Goods Sold:
Beginning Inventory at Cost NO INVENTORY N/A
--------------------
Add: Purchases N/A
--------------------
Less: Ending Inventory at Cost N/A
--------------------
Cost of Goods Sold 6,532.05
--------------------
Gross Profit (7,754.95)
------------------
Other Operating Revenues (Specify) 0
------------------
Less: Operating Expenses:
Officer Compensation 0.00
--------------------
Salaries and Wages -- Other Employees (commissions) 1,713.22
--------------------
Total Salaries and Wages 1,713.22
--------------------
Employee Benefits and Pensions 0.00
--------------------
Payroll Taxes 145.50
--------------------
Real Estate Taxes
--------------------
Federal and State Income Taxes
--------------------
Total Taxes 145.50
--------------------
Rent and Lease Exp. (Real Property and Personal Property) 0.00
--------------------
Interest Expense (Mortgage, Loan, etc.) 0.00
--------------------
Insurance 0.00
--------------------
Automobile Expense 0.00
--------------------
Utilities (Gas, Electricity, Water, Telephone, etc.) 0.00
--------------------
Depreciation and Amortization 0.00
--------------------
Repairs and Maintenance 0.00
--------------------
Advertising 0.00
--------------------
Supplies, Office Expenses, Photocopies, etc. 89.19
--------------------
Bad Debts 0.00
--------------------
Miscellaneous Operating Expenses (credit card discounts) 131.48
--------------------
Total Operating Expenses 2,079.39
--------------------
Net Gain/Loss from Business Operations (9,834.34)
------------------
B. Not Related to Business Operations:
Income:
Interest Income 578.77
--------------------
Other Non-Operating Revenues (Specify)
--------------------
Gross Proceeds on Sale of Assets
--------------------
Less: Original Cost of Assets plus Expenses of Sale
--------------------
Net Gain/Loss of Sale of Assets 578.77
--------------------
Total Non-Operating Income 578.77
------------------
Expenses Not Related to Business Operations:
Legal and Professional Fees (Lobel & Opera) 16,010.47
--------------------
Other Non-Operating Expenses (Bleimiester/Allan) 8,771.39
--------------------
Total Non-Operating Expenses 24,781.86
------------------
NET INCOME / LOSS FOR PERIOD (34,037.43)
------------------
</TABLE>
- --------------------------------------------------------------------------------
Revised April 1989 OPERATING REPORT UST-4
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
DEBTOR IN POSSESSION OPERATING REPORT NO: ___2__ Page 2 of 3
- --------------------------------------------------------------------------------
2. Aging of Accounts Payable and Accounts Receivable (exclude pre-petition
accounts payable):
<TABLE>
<CAPTION>
--------------------------------- ------------------------------
Accounts Payable Accounts Receivable
--------------------------------- ------------------------------
<S> <C> <C> <C>
Current Under 30 Days 11,090.60 40,464.16
--------------------------------- ------------------------------
--------------------------------- ------------------------------
Overdue 31 - 60 Days
--------------------------------- ------------------------------
--------------------------------- ------------------------------
Overdue 61 - 90 Days
--------------------------------- ------------------------------
--------------------------------- ------------------------------
Overdue 91 - 120 Days
--------------------------------- ------------------------------
--------------------------------- ------------------------------
Overdue Over 121 Days
--------------------------------- ------------------------------
--------------------------------- ------------------------------
TOTAL 11,090.60 40,464.16
--------------------------------- ------------------------------
</TABLE>
3. State of Status of Payments to Secured Creditors and Lessors:
<TABLE>
<CAPTION>
------------------------------ ---------------------- ---------------- ----------------- --------------------------------
Frequency Post-Petition
of Payments Per Amount Next Payments Not Made*
Creditor/ Contract / Lease of Each Payment
Lessor (i.e., mo., qtr.) Payment Due Number Amount
------------------------------ ---------------------- ---------------- ----------------- --------------------------------
<S> <C> <C> <C> <C> <C>
Village Plaza Associates mo 7,607 none 2 15,214
------------------------------ ---------------------- ---------------- ----------------- ----------------- --------------
------------------------------ ---------------------- ---------------- ----------------- ----------------- --------------
------------------------------ ---------------------- ---------------- ----------------- ----------------- --------------
------------------------------ ---------------------- ---------------- ----------------- ----------------- --------------
</TABLE>
*Explanation for Non-Payment:
--------------------------------------------------
- --------------------------------------------------------------------------------
4. Tax Liability:
Gross Payroll Expense for Period: $ 145.50
---------------------
Gross Sales for Period Subject to Sales Tax $ 0.00
-------------------
<TABLE>
<CAPTION>
---------------------- ----------------------- --------------------
Post-Petition
taxes Still
Date Paid Amount Paid* Owing
---------------------- ----------------------- --------------------
<S> <C> <C> <C>
Federal Payroll and Withholding Taxes 11/24/98 1,548.71 130.37
---------------------- ----------------------- --------------------
State Payroll and Withholding Taxes 314.16
---------------------- ----------------------- --------------------
State Sales and Use Taxes 456.00
---------------------- ----------------------- --------------------
Real Property Taxes
---------------------- ----------------------- --------------------
</TABLE>
* Attach photocopies of depository receipts from taxing authorities or
financial institutions to verify that such deposits or payments have
been made.
5. Insurance Coverage:
<TABLE>
<CAPTION>
------------------- ------------------ ------------------ ----------------
Carrier / Amount Policy Premium
Agent of Expiration Paid Through
Name Coverage Date Date
------------------- ------------------ ------------------ ----------------
<S> <C> <C> <C> <C>
Worker's Compensation
------------------- ------------------ ------------------ ----------------
Liability
------------------- ------------------ ------------------ ----------------
Fire and Extended Coverage
------------------- ------------------ ------------------ ----------------
Property
------------------- ------------------ ------------------ ----------------
Theft
------------------- ------------------ ------------------ ----------------
Life (Beneficiary: )
---------------------- ------------------- ------------------ ------------------ ----------------
Vehicle
------------------- ------------------ ------------------ ----------------
Other (Specify):
---------------------- ------------------- ------------------ ------------------ ----------------
Director and Officer Insurance Carolina Casualty 3,000,000 4/8/99 4/8/99
------------------------------------------ ------------------- ------------------ ------------------ ----------------
------------------------------------------ ------------------- ------------------ ------------------ ----------------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
DEBTOR IN POSSESSION OPERATING REPORT NO: _____ Page 3 of 3
- --------------------------------------------------------------------------------
6. Questions:
A. Has the Debtor in Possession provided compensation to any
officers, directors, shareholders, or other principals without
the approval of the Office of the United States Trustee?
/ / Yes Explain:
----------------------------------------------
/X/ No
B. Has the Debtor in Possession, subsequent to the filing of the
petition, made any payments on its pre-petition unsecured debt,
except as have been authorized by the Court:
/ / Yes Explain:
----------------------------------------------
/X/ No
7. Statement of Unpaid Professional Fees (Post-Petition Amounts ONLY)
<TABLE>
<CAPTION>
---------------------------------------- ------------------------------ --------------------------
State Type of Total Post-
Professional Petition Amount
Name of Professional (Attorney/Accountant/etc.) Unpaid
---------------------------------------- ------------------------------ --------------------------
<S> <C> <C>
Lobel & Opera Attorney 82,808
---------------------------------------- ------------------------------ --------------------------
---------------------------------------- ------------------------------ --------------------------
---------------------------------------- ------------------------------ --------------------------
---------------------------------------- ------------------------------ --------------------------
---------------------------------------- ------------------------------ --------------------------
</TABLE>
8. Narrative Report of Significant Events and Events out of the Ordinary Course
of Business: (ATTACH SEPARATE SHEET IF NECESSARY)
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
9. Quarterly Fees: (This Fee must be paid to the United States Trustee
every calendar quarter)
<TABLE>
<CAPTION>
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
Quarterly Total Quarterly
Period Disbursements Quarterly Date Amount Check Fee Still
Ending For Quarter Fee Paid Paid No. Owing
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
<S> <C> <C> <C> <C> <C> <C>
9/30/98 321,808 3,750.00 11/4/98 3,750.00 1144 0
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
----------------- ----------------- ---------------- ----------------- ----------------- ----------------- --------------
</TABLE>
I, (Name/Title: Kristy Allan, Chief Accounting Officer), declare under
--------------------------------------
penalty of perjury that the information contained in the above Debtor in
Possession Operating Report is true and complete to the best of my knowledge.
Dated: November 30, 1998
----------------------------
/s/ Kristy Allan
-------------------------------------------
Debtor in Possession or Trustee
