Exhibit 99.1
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF ARIZONA
In re: ) CASE NO. B-00-10938-ECF-RTB
)
THE TESSERACT GROUP, INC. ) BUSINESS AND INDUSTRY
) MONTHLY OPERATING REPORT
)
) MONTH OF October 6-13, 2000
)
Debtor(s) ) DATE PETITION FILED: October 6, 2000
)
) TAX PAYER ID NO. 4101581297
Nature of Debtor's Business: For Profit Educational Services
DATE DISCLOSURE STATEMENT: FILED Not Yet Filed TO BE FILED To Be Determined
------------- ----------------
DATE PLAN OF REORGANIZATION: FILED Not Yet Filed TO BE FILED To Be Determined
------------- ----------------
I CERTIFY UNDER PENALTY OF PERJURY THAT THE FOLLOWING MONTHLY OPERATING REPORT
AND THE ACCOMPANYING ATTACHMENTS ARE TRUE AND CORRECT TO THE BEST OF MY
KNOWLEDGE.
RESPONSIBLE PARTY:
/s/ Lucian P. Spataro CEO
---------------------------------------- ----------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
Lucian P. Spataro 12/4/2000
---------------------------------------- ----------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ Douglass E. Snell Controller
---------------------------------------- ----------
ORIGINAL SIGNATURE OF PREPARER TITLE
Douglass E. Snell 12/4/2000
---------------------------------------- ----------
PRINTED NAME OF PREPARER DATE
PERSON TO CONTACT REGARDING THIS REPORT: Douglass E. Snell
---------------------------------------
PHONE NUMBER: 480-783-4317
---------------------------------------
ADDRESS: 4515 E. Muirwood Dr.
Phoenix, AZ 85048
---------------------------------------
ORIGINAL OF REPORT IS FILED WITH THE COURT,
COPY IS FILED WITH U.S. TRUSTEE'S OFFICE
<PAGE>
THE TESSERACT GROUP, INC.
B-00-10938-ECF-RTB MONTH: OCTOBER 6-31
RECEIPTS AND DISBURSEMENTS
<TABLE>
<CAPTION>
BANK ACCOUNTS
AMOUNTS REPORTED SHOULD BE ------------------------------------------------------------------------------
PER THE DEBTOR'S BOOKS, NATIONAL GROUP GROUP GROUP TESSERACT GROUP
NOT PER THE BANK STATEMENT DEPOSITORY DEPOSITORY MEDICAL PAYROLL OPERATING
#944-010-7759 #022-922-6741 #022-922-6576 #022-922-6576 #022-922-6808
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
ACCOUNT BALANCE -
BEGINNING OF MONTH (10/6/2000) -- 683,380.51 -- -- --
RECEIPTS
STUDENT FEES 1,043,106.54 155,631.83
CHARTER SCHOOL REVENUE
ACCOUNTS RECEIVABLE 45,786.40
LOANS AND ADVANCES
SALE OF ASSETS
TRANSFERS IN FROM OTHER ACCOUNTS 1,085,205.00 27,602.14 1,122,762.49 311,858.93
OTHER (ATTACH LIST)
TOTAL RECEIPTS 1,088,892.94 1,240,836.83 27,602.14 1,122,762.49 311,858.93
DISBURSEMENTS
BUSINESS - ORDINARY OPERATIONS 3,687.94 27,602.14 647,414.29 162,004.46
CAPITAL IMPROVEMENTS
PRE-PETITION DEBT
TRANSFERS TO OTHER DIP ACCOUNTS 1,085,205.00 1,462,223.56
PAYMENTS MADE FOR SUNRISE EDU 268,594.76 475,348.20 149,854.47
OTHER (ATTACH LIST)
REORGANIZATION EXPENSES:
ATTORNEY FEES
ACCOUNTANT FEES
OTHER PROFESSIONAL FEES
U.S. TRUSTEE QUARTERLY FEE
COURT COSTS
TOTAL DISBURSEMENTS 1,088,892.94 1,730,818.32 27,602.14 1,122,762.49 311,858.93
ACCOUNT BALANCE -
END OF MONTH -- 193,399.02 -- -- --
BANK ACCOUNTS
AMOUNTS REPORTED SHOULD BE --------------------------------------------------------------------------------
PER THE DEBTOR'S BOOKS, TESSERACT CHARTER FIRST FEDERAL PETTY CASH
NOT PER THE BANK STATEMENT CHARTER EXTRACURRICULAR CREDIT UNION EAGAN MINNESOTA
##022-922-6808 #022-922-7442 #4002-0270-922 #1-801-9204-8049 TOTAL
-------------- ------------- -------------- ---------------- ------------
ACCOUNT BALANCE -
BEGINNING OF MONTH (10/6/2000) 315,104.99 14,214.27 7,169.42 500.00 1,020,369.19
RECEIPTS
STUDENT FEES 1,198,738.37
CHARTER SCHOOL REVENUE 169,027.15 169,027.15
ACCOUNTS RECEIVABLE 45,786.40
LOANS AND ADVANCES --
SALE OF ASSETS --
TRANSFERS IN FROM OTHER ACCOUNTS 2,547,428.56
OTHER (ATTACH LIST) --
TOTAL RECEIPTS 169,027.15 -- -- -- 3,960,980.48
DISBURSEMENTS
BUSINESS - ORDINARY OPERATIONS 32,445.26 873,154.09
CAPITAL IMPROVEMENTS --
PRE-PETITION DEBT --
TRANSFERS TO OTHER DIP ACCOUNTS 2,547,428.56
PAYMENTS MADE FOR SUNRISE EDU 893,797.43
OTHER (ATTACH LIST) --
REORGANIZATION EXPENSES:
ATTORNEY FEES --
ACCOUNTANT FEES --
OTHER PROFESSIONAL FEES --
U.S. TRUSTEE QUARTERLY FEE --
COURT COSTS --
TOTAL DISBURSEMENTS 32,445.26 -- -- -- 4,314,380.08
ACCOUNT BALANCE -
END OF MONTH 451,686.88 14,214.27 7,169.42 500.00 666,969.59
THE FOLLOWING SECTION MUST BE FILLED OUT
DISBURSEMENTS FOR CALCULATING QUARTERLY FEES:
TOTAL DISBURSEMENTS FROM ABOVE 4,314,380.08
LESS: TRANSFERS OUT TO OTHER DIP ACCOUNTS (2,547,428.56)
LESS: PAYMENTS MADE FOR SUNRISE EDUCATIONAL SERVICES, INC. (893,797.43)
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. PAYMENTS FROM ESCROW OR 2-PARTY CHECKS)
TOTAL DISBURSEMENTS FOR CALCULATING QUARTERLY FEES: 873,154.09
</TABLE>
<PAGE>
The Tesseract Group (excl. Sunrise)
Statement of Operations
For the Month Ending October 31, 2000
REVENUE
Tuition and Fees Revenue $ 999,859.87
Charter Revenue 225,896.27
Transportation Revenue 1,585.53
Food Revenue 23,632.09
Discounts (8,350.07)
Refunds/Returns (2,380.50)
-------------
Total Revenue 1,240,243.19
-------------
OPERATIONAL COSTS
Salaries and Wages 528,594.81
Taxes and Benefits 40,644.26
Classroom Expenses 44,390.39
Food Programs Expense 23,369.07
Transportation Expenses 1,110.07
Maintenance Expense 52,482.45
Rent Expense 209,448.19
Security Services Expense 113.48
Real Property Tax Expense 16,624.92
Sales and Use Tax Expense 807.80
Utilities Expense 27,103.45
-------------
Total Operational Costs 944,688.89
-------------
GENERAL & ADMINISTRATIVE COSTS
Advertising, Mktg, Promo Exp 2,578.00
Bad Debt Expense (5,769.35)
Bank Charges/Processing Fees-A 5,033.19
Computer/Technology Expense 600.00
Licenses & Fees Expense 803.00
Office/School Supplies Expense 975.57
Penalties & Late Fees Expense 74.00
Postage and Printing Expense 80.44
Pre-Employment Expense 154.00
Telephone Expense 2,958.61
Travel Expense 764.93
Corporate Overhead 333,644.47
Corporate Overhead Allocated to Sunrise (166,822.24)
Other Expenses 425.12
-------------
Total General and Administrative Expenses 175,499.74
-------------
Interest Expense (635.91)
Undefined Peoplesoft 179.15
-------------
Net Interest and Other Income (Expense) (456.76)
-------------
Depreciation Expense 95,773.53
-------------
Total Depreciation and Amortization 95,773.53
-------------
REORGANIZATION EXPENSES
Professional Fees 176,713.87
Professional Fees Allocated to Sunrise (87,219.93)
-------------
Total Reorganization Expenses 89,493.94
-------------
Net Income $ (65,669.67)
=============
<PAGE>
The Tesseract Group (excl. Sunrise)
Balance Sheet
October 31, 2000
ASSETS
Current Assets
Cash and Cash Equivalents $ 2,928,021.18
Accounts Receivable, net 238,557.40
Note Receivable from Nobel 2,944,888.22
Prepaid Rent 257,126.04
Other Prepaid Expenses 460,103.14
--------------
Total Current Assets 6,828,695.98
Investment in Sunrise 18,971,824.26
Property and Equipment, net 5,827,124.46
Deposits and Other Assets 1,633,643.56
--------------
Total Assets $33,261,288.26
==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 96,274.00
Accrued Payroll and Benefits 1,032,578.44
Accrued Payroll Taxes 105,678.00
Deferred Revenue and Tuition Deposits 2,660,491.60
--------------
Total Current Liabilities 3,895,022.04
--------------
Pre-Petition Liabilities
Line of Credit 5,848,822.65
Accounts Payable 3,773,466.87
Other Unsecured Notes Payable 865,500.00
Other Current Liabilities 3,444,344.29
Long-Term Debt 3,177,545.00
--------------
Total Pre-Petition Liabilities 17,109,678.81
--------------
Due to Sunrise 698,708.29
Reserve for Closed Schools 504,099.10
Other Long-Term Obligations 13,999.76
--------------
Total Long-Term Liabilities 1,216,807.15
--------------
Total Liabilities 22,221,508.00
--------------
Shareholders' Equity
Pre-Petition Shareholders' Equity 11,105,449.93
Post Petition Retained Deficit (65,669.67)
--------------
Total Shareholders' Equity 11,039,780.26
--------------
Total Liabilities and Shareholders' Equity $33,261,288.26
==============
<PAGE>
CASE NUMBER: B-00-10938-ECF-RTB
STATUS OF ASSETS
<TABLE>
<CAPTION>
0-30 31-60 60+
ACCOUNTS RECEIVABLE TOTAL DAYS DAYS DAYS
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
TOTAL ACCOUNTS RECEIVABLE 238,557 199,332 20,765 18,459
LESS: AMOUNT CONSIDERED UNCOLLECTIBLE
---------- ---------- ---------- ----------
ACCOUNTS RECEIVABLE (NET) 238,557 199,332 20,765 18,459
========== ========== ========== ==========
SCHEDULED CURRENT
FIXED ASSETS AMOUNT ADDITIONS DELETIONS AMOUNT
---------- ---------- ---------- ----------
REAL PROPERTY 1,867,408 1,867,408
========== ========== ========== ==========
BUILDING IMPROVEMENTS/PLANT 846,395 18,450 864,845
ACCUMULATED DEPRECIATION (136,823) (5,940) (142,762)
---------- ---------- ---------- ----------
NET BUILDINGS/PLANT 709,573 12,510 -- 722,083
========== ========== ========== ==========
EQUIPMENT 5,466,149 5,466,149
ACCUMULATED DEPRECIATION (2,404,930) (106,649) (2,511,579)
---------- ---------- ---------- ----------
NET EQUIPMENT 3,061,218 (106,649) -- 2,954,569
========== ========== ========== ==========
AUTOS & VEHICLES 557,586 557,586
ACCUMULATED DEPRECIATION (259,791) (14,731) (274,522)
---------- ---------- ---------- ----------
NET AUTOS & VEHICLES 297,795 (14,731) -- 283,064
========== ========== ========== ==========
</TABLE>
<PAGE>
CASE NUMBER: B-00-10938-ECF-RTB
STATUS OF LIABILITIES
AND SENSITIVE PAYMENTS
<TABLE>
<CAPTION>
POSTPETITION
UNPAID OBLIGATIONS TOTAL 0-30 31-60 61-90 91+
------------------ ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ACCOUNTS PAYABLE 96,274 96,274
TAXES PAYABLE 105,678 105,678
ACCRUED SALARIES AND BENEFITS 1,032,578 1,032,578
PREPAID TUITION AND DEPOSITS 2,660,492 2,660,492
SECURED DEBT
OTHER (ATTACH LIST)
---------- ---------- ---------- ---------- ----------
TOTAL POST-PETITION
LIABILITIES 3,895,022 3,895,022 -- -- --
========== ========== ========== ========== ==========
</TABLE>
PAYMENTS TO INSIDERS AND PROFESSIONALS
INSIDERS
AMOUNT PD TOTAL PD
NAME REASON FOR PAYMENT THIS MONTH TO DATE
---- ------------------ ---------- ---------
Lucian Spataro Wages and Exp. Reimbursement 20,186.36 20,186.36
Ernie Recsetar Wages 10,000.00 10,000.00
Michael Lynch Wages and Exp. Reimbursement 7,948.21 7,948.21
--------- ---------
TOTAL PAYMENTS TO INSIDERS 38,134.57 38,134.57
========= =========
PROFESSIONALS
DATE OF COURT TOTAL
ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED
NAME PAYMENT APPROVED PAID TO DATE & UNPAID
---- ------- -------- ---- ------- --------
NONE
<PAGE>
CASE NUMBER: B-00-10938-ECF-RTB
CASE STATUS
QUESTIONNAIRE
YES NO
HAVE ANY FUNDS BEEN DISBURSED FROM ANY All accounts are in
ACCOUNT OTHER THAN A DEBTOR IN POSSESSION process of conversion
ACCOUNT? to DIP designation
ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS,
NOTES, OR LOANS) DUE FROM RELATED PARTIES? NO
ARE ANY WAGE PAYMENTS PAST DUE? NO
ARE ANY U.S. TRUSTEE QUARTERLY FEES
DELINQUENT? NO
CURRENT NUMBER OF EMPLOYEES: 311
INSURANCE
CARRIER AND PERIOD EXPIRATION PAYMENT AMOUNT
TYPE OF POLICY POLICY NUMBER COVERED DATE & FREQUENCY
-------------- ------------- ------- ---- -----------
Gen Liability CLI0018811 3/1/00 3/1/01 39,208.72 /month
Auto Liability BAP0708409 5/1/00 3/1/01 Included above
Excess Liability UMI0000552 3/1/00 3/1/01 Included above
Workers Comp 59WBJB3649 11/30/99 11/30/00 Fully Paid
Non-Owned Auto 59UUNGG2042 3/1/00 3/1/01 Included above
WHAT STEPS HAVE BEEN TAKEN TO REMEDY ANY OF THE PROBLEMS THAT BROUGHT ABOUT THE
CHAPTER 11 FILING?
Purchasing of new schools has ceased, and administrative expenses have been
reduced. Other restructuring measures are being considered.
LIST ANY MATTERS THAT ARE DELAYING THE FILING OF A PLAN OF REORGANIZATION?
<PAGE>
Corporate Company
VENDOR CHECK REGISTER REPORT
Payables Management
<TABLE>
<CAPTION>
Ranges: From: To: From: To:
Check Number First Last Check Date 10/6/00 10/31/00
Vendor ID First Last Checkbook ID First Last
Vendor Name First Last
Sorted By: Check Number
* Voided Checks
Check Number Vendor ID Vendor Check Name Check Date Checkbook ID Audit Trail Code Amount
------------ --------- ----------------- ---------- ------------ ---------------- -----------
<S> <C> <C> <C> <C> <C> <C>
100-003-9516 ARC000000 ARC 10/18/00 OPERATING PMPAY00000008 $270.69
1465750542 LAKLEA000 LAKESHORE LEARNING MATERIALS 10/29/00 OPERATING PMPAY00000008 $2,637.15
1810820159 STAGRO000 STANTON GROUP 10/13/00 OPERATING PMPAY00000008 $437.50
200011295 QUASTA000-B QUALITY STAMP AND SEAL 10/10/00 OPERATING PMTRX00000166 $34.96
200011296 US0FOO000-B US FOODSERVICE 10/13/00 OPERATING PMTRX00000172 $12,500.00
200011297 DEPOFPUSA-B DEPARTMENT OF PUBLIC SAFETY - 10/13/00 OPERATING PMCHK00000098 $88.00
200011298 BROFRA000-B FRANK BRONSON 10/13/00 OPERATING PMCHK00000098 $1,725.67
200011299 CHRHOO000-B CHRIS HOOPER DBA SPORTS CLINIC 10/13/00 OPERATING PMCHK00000098 $342.17
200011300 LUE000000-B LUETHMERS,JACKI 10/13/00 OPERATING PMCHK00000098 $10.88
200011301 NOP000000-B NOPPENBERG,KAREN 10/13/00 OPERATING PMCHK00000098 $31.56
200011302 PAU000-B PAUL TAYLOR 10/13/00 OPERATING PMCHK00000098 $55.80
200011303 ROBMAR000-B MARCIA ROBINSON 10/13/00 OPERATING PMCHK00000098 $755.00
200011304 ROMAMY000-B ROMINE, AMY 10/13/00 OPERATING PMCHK00000098 $82.95
200011305 WAMCHA000-B CHANDA WAMPLER 10/13/00 OPERATING PMCHK00000098 $20.16
200011306 UNISTA000-B UNITED STATES POSTAL SERVICE 10/13/00 OPERATING PMCHK00000098 $2,000.00
200011307 STAFUN000-B STATE FUND COMPENSATION 10/13/00 OPERATING PMCHK00000098 $5,124.00
200011308 ARICOR000-B ARIZONA CORP COMMISSION 10/13/00 OPERATING PMCHK00000098 $45.00
200011309 LYN000000-B LYNCH,MICHAEL 10/13/00 OPERATING PMTRX00000173 $99.02
200011310 SPA000000-B SPATARO,LUCIAN 10/13/00 OPERATING PMTRX00000175 $281.92
200011311 KEVBUN000-B KEVIN BUNYAN KARATE 10/13/00 OPERATING PMTRX00000176 $2,066.00
200011312 OWERHO000-B OWENS, RHONDA 10/17/00 OPERATING PMCHK00000100 $600.00
200011313 REE000000-B REEVES,LARRY 10/20/00 OPERATING PMTRX00000183 $233.12
200011314 LYN000000-B LYNCH,MICHAEL 10/20/00 OPERATING PMTRX00000184 $421.74
200011315 SPA000000-B SPATARO,LUCIAN 10/23/00 OPERATING PMTRX00000186 $228.17
200011316 C.S.C.000-B C.S.C. 10/24/00 OPERATING PMTRX00000187 $450.00
200011318 NOBSCH000-B NOBEL SCHOOL MGMT SVC 10/26/00 OPERATING PMCHK00000101 $11,100.00
200011319 LYN000000-B LYNCH,MICHAEL 10/27/00 OPERATING PMTRX00000191 $369.14
200011320 REE000000-B REEVES,LARRY 10/27/00 OPERATING PMTRX00000192 $359.38
200011322 FOR000000-B FORTIS 10/27/00 OPERATING PMTRX00000194 $7,339.67
200011323 LYN000000-B LYNCH,MICHAEL 10/30/00 OPERATING PMTRX00000195 $231.71
200011324 BEM000000-B BEMISH,KAREN 10/30/00 OPERATING PMCHK00000104 $200.00
200011325 EDUCOR000-B EDUCORP PROPERTIES, INC 10/30/00 OPERATING PMCHK00000104 $207,873.29
200011326 FOR000000-B FORTIS 10/30/00 OPERATING PMCHK00000104 $1,102.47
200011327 NOPOOO000-B MIKE NOPPENBERG 10/30/00 OPERATING PMCHK00000104 $1,000.00
200011328 SLAJAC000-B JACK SLADE 10/30/00 OPERATING PMCHK00000104 $1,000.00
200011329 ST.GEO000-B ST. GEORGE FELLOWSHIP HALL 10/30/00 OPERATING PMCHK00000104 $3,182.70
200011330 AICRED000-B A.I. CREDIT CORP. 10/31/00 OPERATING PMCHK00000105 $40,526.80
200011331 AT&T78522-B AT&T - 78522 10/31/00 OPERATING PMCHK00000105 $204.44
200011332 AUTDAT000-B AUTOMATIC DATA PROCESSING ADP 10/31/00 OPERATING PMCHK00000105 $2,609.61
200011333 FEDEXP000-B FEDERAL EXPRESS 10/31/00 OPERATING PMCHK00000105 $556.28
200011334 IMPFIN000-B IMPERIAL FINANCIAL PRINTING 10/31/00 OPERATING PMCHK00000105 $80.00
200011335 RSMMCG000-B RSM MCGLADREY 10/31/00 OPERATING PMCHK00000105 $3,253.50
200011336 SHE000000-B SHEARER,DAN 10/31/00 OPERATING PMCHK00000105 $135.78
200011337 UNIPAR000-B UNITED PARCEL SERVICE-UPS 10/31/00 OPERATING PMCHK00000105 $30.00
200011338 SPA000000-B SPATARO,LUCIAN 10/31/00 OPERATING PMTRX00000199 $162.17
REMIT000000000000047 AIR000000-B AIRE-MASTER 10/13/00 PMCHK00000098 $0.00
REMIT000000000000048 ALLFOO001-B ALLIANT FOODSERVICE - AZ 10/13/00 PMCHK00000098 $0.00
REMIT000000000000049 ARIAIR000-B ARIZONA AIR-SCENT 10/13/00 PMCHK00000098 $0.00
REMIT000000000000050 ATHIN0000-B ATHLETES IN TRAINING 10/13/00 PMCHK00000098 $0.00
REMIT000000000000051 CARJUD000-B JUDY CAREY 10/13/00 PMCHK00000098 $0.00
REMIT000000000000052 COUCHE000-B COURTESY CHEVROLET 10/13/00 PMCHK00000098 $0.00
REMIT000000000000053 DIMWIL000-B WILLIAM DIMAS 10/13/00 PMCHK00000098 $0.00
REMIT000000000000054 HARBRA001-B HARCOURT BRACE FL 10/13/00 PMCHK00000098 $0.00
REMIT000000000000055 HEA000000-B HEARTSMART 10/13/00 PMCHK00000098 $0.00
REMIT000000000000056 HEASAV000-B HEART SAVERS 10/13/00 PMCHK00000098 $0.00
REMIT000000000000057 HOMDEP000-B HOME DEPOT 10/13/00 PMCHK00000098 $0.00
REMIT000000000000058 JL0HAM000-B JL HAMMETT CO- NO 10/13/00 PMCHK00000098 $0.00
REMIT000000000000059 JON000001-B JONES,EARL 10/13/00 PMCHK00000098 $0.00
REMIT000000000000060 KP0LIM000-B KP LIMITED INC 10/13/00 PMCHK00000098 $0.00
REMIT000000000000061 LAKLEA000-B LAKESHORE LEARNING MATERIALS 10/13/00 PMCHK00000098 $0.00
REMIT000000000000062 LEWKAR000-B KARA LEWIS 10/13/00 PMCHK00000098 $0.00
REMIT000000000000063 PARVAL000-B PARADISE VALLEY JANITORIAL 10/13/00 PMCHK00000098 $0.00
REMIT000000000000064 PROUSA000-B PROFORCE USA 10/13/00 PMCHK00000098 $0.00
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Check Number Vendor ID Vendor Check Name Check Date Checkbook ID Audit Trail Code Amount
------------ --------- ----------------- ---------- ------------ ---------------- -----------
<S> <C> <C> <C> <C> <C> <C>
REMIT000000000000065 Q0MINC000-B Q-MATRIX INC 10/13/00 PMCHK00000098 $0.00
REMIT000000000000066 REDELL000-B ELLEN REDDEN 10/13/00 PMCHK00000098 $0.00
REMIT000000000000067 ROBNAT000-B NATASJA ROBBINS 10/13/00 PMCHK00000098 $0.00
REMIT000000000000068 SANVIL001-B SANTIAGO VILLA (#129) 10/13/00 PMCHK00000098 $0.00
REMIT000000000000069 SC0WAR000-B SC WARNER TEMPE, INC. 10/13/00 PMCHK00000098 $0.00
REMIT000000000000070 SCHJAC000-B SCHMIDT, JACKIE 10/13/00 PMCHK00000098 $0.00
REMIT000000000000071 SCODR0000-B SCOTT DR,ANNE 10/13/00 PMCHK00000098 $0.00
REMIT000000000000072 SHAFOO000-B SHAMROCK FOODS COMPANY 10/13/00 PMCHK00000098 $0.00
REMIT000000000000073 SHAKIM000-B KIMBERLY SHAW 10/13/00 PMCHK00000098 $0.00
REMIT000000000000074 STRLAN000-B QUARLES & BRADY STREICH LANG 10/13/00 PMCHK00000098 $0.00
REMIT000000000000075 TAHINC000-B TAHER, INC 10/13/00 PMCHK00000098 $0.00
REMIT000000000000076 TEASQU000-B TEACHERS SQUARE 10/13/00 PMCHK00000098 $0.00
REMIT000000000000077 THEHAR000-B THE HARTFORD 10/13/00 PMCHK00000098 $0.00
REMIT000000000000078 TUMTOW000-B TUMBLE TOWN GYMNASTICS 10/13/00 PMCHK00000098 $0.00
REMIT000000000000079 US0BAN000-B US BANK NATIONAL ASSOCIAT-401K 10/13/00 PMCHK00000098 $0.00
REMIT000000000000080 US0FOO000-B US FOODSERVICE 10/13/00 PMCHK00000098 $0.00
REMIT000000000000081 VANPAP000-B VAN PAPER COMPANY 10/13/00 PMCHK00000098 $0.00
REMIT000000000000082 XPE000000-B XPEDX 10/13/00 PMCHK00000098 $0.00
REMIT000000000000083 YOUTAM000-B TAMMY BROADUS-YOUNGSMAN 10/13/00 PMCHK00000098 $0.00
REMIT000000000000084 A1CREDD000 A1CREDIT CORP 10/30/00 PMCHK00000104 $0.00
REMIT000000000000085 ACCAND000 ACCT. AND CREDIR ALT - ARIZONA 10/30/00 PMCHK00000104 $0.00
REMIT000000000000086 ARC000000 ARC 10/30/00 PMCHK00000104 $0.00
REMIT000000000000087 AZCON0000 AZ CONSTRUCTION AND MAINTENANC 10/30/00 PMCHK00000104 $0.00
REMIT000000000000088 CANLIF000 CANADA LIFE INSURANCE 10/30/00 PMCHK00000104 $0.00
REMIT000000000000089 FIERC0000 FIELD,SARVAS,KING &COLEMAN,PC 10/30/00 PMCHK00000104 $0.00
REMIT000000000000090 FINPER000 FINANCIAL PERSONAL FINDER 10/30/00 PMCHK00000104 $0.00
REMIT000000000000091 HOFZSO000 ZSOLT HOFMAN 10/30/00 PMCHK00000104 $0.00
REMIT000000000000092 JOH000000 JOHNSON,DEBRA 10/30/00 PMCHK00000104 $0.00
REMIT000000000000093 KANSTA001 KANSAS STATE BANK OF MANHATTAN 10/30/00 PMCHK00000104 $0.00
REMIT000000000000094 NAS000 NASCO - MODESTO 10/30/00 PMCHK00000104 $0.00
REMIT000000000000095 NEWENG000 NEW ENGLAND CAPITAL CORP 10/30/00 PMCHK00000104 $0.00
REMIT000000000000096 NORAIRCOR NORTHERN AIR CORPORATION 10/30/00 PMCHK00000104 $0.00
REMIT000000000000097 PRIWAT000 PRICEWATERHOUSECOOPERS 10/30/00 PMCHK00000104 $0.00
REMIT000000000000098 RSMMCG000 RSM MCGLADREY 10/30/00 PMCHK00000104 $0.00
REMIT000000000000099 US0WES003 US WEST COMMUNICATIONS-29060 10/30/00 PMCHK00000104 $0.00
REMIT000000000000100 WESINN000 WESTERN INNOVATIONS INC 10/30/00 PMCHK00000104 $0.00
REMIT000000000000101 YGNPHI000 YGNACIO,PHILIP D. 10/30/00 PMCHK00000104 $0.00
TEST TEST TEST 10/13/00 OPERATING PMCHK00000099 $0.50
TEST-1 TEST TEST 10/13/00 OPERATING PMTRX00000178 $0.01
TEST-2 TEST TEST 10/13/00 OPERATING PMTRX00000178 $0.01
TEST-3 TEST TEST 10/13/00 OPERATING PMTRX00000178 $0.01
Total Checks: 104 Total Amount of Checks: $311,858.93
</TABLE>
<PAGE>
Owned Charters
VENDOR CHECK REGISTER REPORT
Payables Management
<TABLE>
<CAPTION>
Ranges: From: To: From: To:
Check Number First Last Check Date 10/6/00 10/31/00
Vendor ID First Last Checkbook ID First Last
Vendor Name First Last
Sorted By: Check Number
* Voided Checks
Check Number Vendor ID Vendor Check Name Check Date Checkbook ID Audit Trail Code Amount
------------ --------- ----------------- ---------- ------------ ---------------- -----------
<S> <C> <C> <C> <C> <C> <C>
800050129 GARBOV000 GARY BOVEN 10/10/00 OPERATING PMCHK00000016 $87.50
800050130 JANHOB000 JANE HOBAICA 10/10/00 OPERATING PMCHK00000016 $245.00
800050131 LORWAR000 LORENA WARREN 10/10/00 OPERATING PMCHK00000016 $70.00
800050132 REBHIL000 REBECCA HILT 10/10/00 OPERATING PMCHK00000016 $108.00
800050134 DEPOFPUSA DEPARTMENT OF PUBLIC SAFETY - 10/13/00 OPERATING PMCHK00000017 $48.00
800050135 DEPOFPUSA DEPARTMENT OF PUBLIC SAFETY - 10/13/00 OPERATING PMCHK00000017 $48.00
800050136 BUEHIG000 BUENA HIGH PRINT 10/13/00 OPERATING PMCHK00000017 $80.44
800050137 THUMOU000-B THUNDER MOUNTAIN CLEANING SERV 10/26/00 OPERATING PMTRX00000033 $5,344.75
800050138 FIRWES000-B FIRST WEST PROPERTIES 10/30/00 OPERATING PMCHK00000018 $16,054.21
800050139 RUR&0R001-B RURAL & RAY LLC (CORONA DEL) 10/30/00 OPERATING PMCHK00000018 $6,349.42
800050140 BMIEDU000-B BMI EDUCATION SERVICE 10/30/00 OPERATING PMCHK00000019 $129.33
800050141 CITPHO296-B CITY OF PHOENIX 29690 10/30/00 OPERATING PMCHK00000019 $4.88
800050142 FRIJEN000-B JENNIFER FRIEND 10/30/00 OPERATING PMCHK00000019 $60.66
800050143 HUNLIL000-B HUNT, LILLIAN 10/30/00 OPERATING PMCHK00000019 $43.40
800050144 KP0LIM000-B KP LIMITED INC 10/30/00 OPERATING PMCHK00000019 $1,914.75
800050146 MCE000000-B MCESD 10/30/00 OPERATING PMCHK00000019 $200.00
800050147 NEG000000-B NEGRETTI,MARILYN 10/30/00 OPERATING PMCHK00000019 $47.12
800050148 STUBON000-B BONNI STUTZ 10/30/00 OPERATING PMCHK00000019 $40.82
800050149 SULSPR000-B SULPHUR SPRINGS ELECTRIC 10/30/00 OPERATING PMCHK00000019 $1,206.19
800050150 WOL000000-B WOLF,MICHAEL 10/30/00 OPERATING PMCHK00000019 $362.79
Total Checks: 20 Total Amount of Checks: $32,445.26
</TABLE>
<PAGE>
THE TESSERACT GROUP, INC.
CASH FLOW ANALYSIS
B-00-10938-ECF-RTB
BEGINNING FUNDS AVAILABLE: $1,020,369.19
-------------
Cash In: Credit Card Deposit (Private) 82,512.90
Credit Card Deposit (Charter) 975.00
Regular Deposits (Private) 197,809.03
Regular Deposits (Charter) 9,248.93
Regular Deposits (Corporate) 45,786.40
Other Deposit (Charter) 169,027.15
------------
Daily Cash In: $ 505,359.41
============
Cash Out: Charter A/P 32,445.26
Private A/P 12,150.00
Corporate A/P 299,708.93
Corporate A/P (allocated to Sunrise) (149,854.47)
TesseracT Payroll 541,787.80
Charter Payroll 105,626.49
Medical Claims 27,602.14
Banking Fees 3,687.94
-------------
Daily Cash Out: $ 873,154.09
=============
Net Cash In/Out: $ (367,794.68)
-------------
ENDING FUNDS AVAILABLE: $ 652,574.51
=============
<PAGE>
THE TESSERACT GROUP, INC.
CONSOLIDATED CASH FLOW ANALYSIS
For The Period
10/6 TO 10/30/00
----------------
BEGINNING FUNDS AVAILABLE: $1,020,369.19
-------------
Cash In: Telecheck $ 155,631.83
Credit Card Deposit (Preschools) 395,634.62
Credit Card Deposit (Private) 82,512.90
Credit Card Deposit (Charter) 975.00
Regular Deposits (Preschools) 356,926.06
Regular Deposits (Private) 197,809.03
Regular Deposits (Charter) 9,248.93
Regular Deposits (Corporate) 45,786.40
Other Deposit (Charter) 169,027.15
-------------
Daily Cash In: $1,413,551.92
=============
Cash Out: Preschool A/P $ 268,594.76
Charter A/P 32,445.26
Private A/P 12,150.00
Corporate A/P 299,708.93
TesseracT Payroll 541,787.80
Preschool Payroll 475,348.20
Charter Payroll 105,626.49
Medical Claims 27,602.14
Banking Fees 3,687.94
-------------
Daily Cash Out: $1,766,951.52
=============
Net Cash In/Out: $ (353,399.60)
-------------
ENDING FUNDS AVAILABLE: $ 666,969.59
=============
