EX-99.5 6 v352054_ex99-5.htm EXHIBIT 99.5

 

UNITED STATES BANKRUPTCY COURT

_____________ DISTRICT OF ______________

 

In re   KIT digital, Inc.   Case No.   13-11298 (REG)
   Debtor   Reporting Period:   July 1 2013 to July 31 2013
           
      Federal Tax I.D. #   11-3447894

 

CORPORATE MONTHLY OPERATING REPORT

 

File with the Court and submit a copy to the United States Trustee within 20 days after the end of the month and submit a copy of the report to any official committee appointed in the case. 

(Reports for Rochester and Buffalo Divisions of Western District of New York are due 15 days after the end of the month, as are the reports for Southern District of New York.)       

 

REQUIRED DOCUMENTS   Form No.   Document Attached   Explanation Attached
Schedule of Cash Receipts and Disbursements   MOR-1        
Bank Reconciliation (or copies of debtor's bank reconciliations)   MOR-1 (CON'T)        
Copies of bank statements            
Cash disbursements journals            
Statement of Operations   MOR-2        
Balance Sheet   MOR-3        
Status of Post-petition Taxes   MOR-4        
Copies of IRS Form 6123 or payment receipt            
Copies of tax returns filed during reporting period            
Summary of Unpaid Post-petition Debts   MOR-4        
Listing of Aged Accounts Payable            
Accounts Receivable Reconciliation and Aging   MOR-5        
Taxes Reconciliation and Aging   MOR-5        
Payments to Insiders and Professional   MOR-6        
Post Petition Status of Secured Notes, Leases Payable   MOR-6        
Debtor Questionnaire   MOR-7        

 

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents

are true and correct to the best of my knowledge and belief.

 

Signature of Debtor   Date  
     
Signature of Authorized Individual*   Date 8/12/2013
       
Printed Name of Authorized Individual: Fabrice Hamaide   Date 8/12/2013

 

*Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

 

PAGE 1 OF 9
 

 

In re   KIT digital, Inc.   Case No.   13-11298 (REG)
   Debtor   Reporting Period:   July 1 2013 to July 31 2013

 

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS 

 

Amounts reported should be from the debtor’s books and not the bank statement.   The beginning cash should be the ending cash from the prior month or, if this is the first report,  the amount should be the balance on the date the petition was filed.  The amounts reported in the "CURRENT MONTH -

ACTUAL” column must equal the sum of the four bank account columns.  Attach copies of the bank statements and the cash disbursements journal. The total disbursements listed in the disbursements journal must equal the total disbursements reported on this page.  A bank reconciliation must be attached for each account.  [See MOR-1 (CON’T)]

 

   BANK  ACCOUNTS 
ACCOUNT NUMBER (LAST 4)  OPER   PAYROLL   TAX   OTHER   CURRENT MONTH ACTUAL (TOTAL OF ALL ACCOUNTS) 
CASH BEGINNING  OF MONTH   19,065.74                   19,065.74 
RECEIPTS                         
CASH  SALES                       - 
ACCOUNTS RECEIVABLE - PREPETITION                       - 
ACCOUNTS RECEIVABLE - POSTPETITION                       - 
LOANS AND ADVANCES   1,395,000.00                   1,395,000.00 
SALE  OF  ASSETS                       - 
OTHER  (ATTACH  LIST)                       - 
TRANSFERS (FROM DIP ACCTS)             - 
TOTAL  RECEIPTS  1,395,000.00   -   -   -   1,395,000.00 
DISBURSEMENTS                         
NET PAYROLL   126,100.00                   126,100.00 
PAYROLL TAXES                       - 
SALES, USE, & OTHER TAXES                       - 
INVENTORY PURCHASES                       - 
SECURED/ RENTAL/ LEASES                       - 
INSURANCE   12,402.28                   12,402.28 
ADMINISTRATIVE   21,779.06                   21,779.06 
SELLING                       - 
OTHER  (ATTACH  LIST)                       - 
OWNER DRAW *                       - 
TRANSFERS (TO DIP ACCTS)                       - 
PROFESSIONAL FEES   974,111.27                   974,111.27 
U.S. TRUSTEE  QUARTERLY FEES   6,500.00                   6,500.00 
COURT COSTS              - 
TOTAL DISBURSEMENTS  1,140,892.61   -   -   -   1,140,892.61 
                          
NET CASH FLOW   254,107.39    -    -    -    254,107.39 
(RECEIPTS LESS DISBURSEMENTS)                         
                          
CASH – END OF MONTH   273,173.13    -    -    -    273,173.13 

 

* COMPENSATION TO SOLE PROPRIETORS FOR SERVICES RENDERED TO BANKRUPTCY ESTATE

 

THE FOLLOWING SECTION MUST BE COMPLETED

DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH  ACTUAL COLUMN)

 

TOTAL DISBURSEMENTS   1,140,892.61 
LESS:  TRANSFERS TO OTHER DEBTOR IN POSSESSION ACCOUNTS   - 
PLUS:   ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES  (i.e. from escrow accounts)   - 
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES   1,140,892.61 

  

PAGE 2 OF 9
 

 

In re   KIT digital, Inc.   Case No.   13-11298 (REG)
   Debtor   Reporting Period:   July 1 2013 to July 31 2013

 

BANK RECONCILIATIONS

 

Continuation Sheet for MOR-1

A bank reconciliation must be included for each bank account.  The debtor's bank reconciliation may be substituted for this page.

(Bank account numbers may be redacted to last four numbers.)

 

   Operating   Payroll   Tax   Other 
   #   #   #   # 
BALANCE PER BOOKS   273,173.13             
                     
BANK BALANCE   279,673.13                
(+) DEPOSITS IN TRANSIT (ATTACH LIST)   0                
(-)  OUTSTANDING CHECKS (ATTACH LIST):   (6,500.00)               
OTHER  (ATTACH EXPLANATION)   0                
                     
ADJUSTED BANK BALANCE *   273,173.13                
                     
*"Adjusted Bank Balance" must equal "Balance per Books"                    
                     
DEPOSITS IN TRANSIT   Date    Amount    Date    Amount 
                     
                     
                     
                     
CHECKS OUTSTANDING   Ck. #    Amount    Ck. #    Amount 
                     
US Department of Justice US Trustee Program   3704    6,500.00           
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
OTHER                    
                     
                     
                     
                     
                    

 

PAGE 3 OF 9
 

 

In re   KIT digital, Inc.   Case No.   13-11298 (REG)
   Debtor   Reporting Period:   July 1 2013 to July 31 2013

 

STATEMENT OF OPERATIONS  (Income Statement)

 

The Statement of Operations is to be prepared on an accrual basis.  The accrual basis of accounting recognizes revenue

when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid.

 

REVENUES  MONTH   CUMULATIVE  -FILING TO DATE 
Gross Revenues          
Less:  Returns and Allowances          
Net Revenue          
COST OF GOODS SOLD          
Beginning Inventory          
Add: Purchases          
Add: Cost of Labor          
Add: Other Costs (attach schedule)          
Less:  Ending Inventory          
Cost of Goods Sold          
Gross Profit          
OPERATING EXPENSES          
Advertising          
Auto and Truck Expense          
Bad Debts          
Contributions          
Employee Benefits Programs   7,608.17    8,228.97 
Officer/Insider Compensation*   80,000.00    287,975.00 
Insurance   27,640.00    82,920.00 
Management Fees/Bonuses          
Office Expense   -    81.29 
Pension & Profit-Sharing Plans          
Repairs and Maintenance   1,143.19    3,429.57 
Rent and Lease Expense          
Salaries/Commissions/Fees   61,142.47    241,656.35 
Supplies   75.12    936.02 
Taxes - Payroll   2,697.84    12,402.11 
Taxes - Real Estate          
Taxes - Other   41,563.34    41,563.34 
Travel and Entertainment   -    1,010.02 
Utilities   6,766.98    17,565.52 
Other (attach schedule)   31,990.93    54,115.65 
Total Operating Expenses Before Depreciation          
Depreciation/Depletion/Amortization   75,833.65    416,621.97 
Net Profit (Loss) Before Other Income & Expenses   (336,461.69)   (1,168,505.81)
OTHER INCOME AND EXPENSES          
Other Income (attach schedule)          
Interest Expense   19,723.34    284,838.13 
Other Expense (attach schedule)   -    125,000.00 
Net Profit (Loss) Before Reorganization Items   (356,185.03)   (1,578,343.94)
REORGANIZATION ITEMS          
Professional Fees   3,755,619.57    5,787,117.66 
U. S. Trustee Quarterly Fees   6,500.00    6,500.00 
Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet)          
Gain (Loss) from Sale of Equipment          
Other Reorganization Expenses (attach schedule)          
Total Reorganization Expenses          
Income Taxes          
Net Profit (Loss)   (4,118,304.60)   (7,371,961.60)
*"Insider" is defined in 11 U.S.C. Section 101(31).          
           
BREAKDOWN OF “OTHER” CATEGORY          
           
OTHER COSTS          
Monthly Bank fee   1,868.81    7,884.84 
Corporate and Shareholder Services   5,284.49    19,603.18 
Data Room costs   22,819.20    24,419.20 
Other Misc exp   710.00    900.00 
F/X loss   1,308.43    1,308.43 
           
OTHER OPERATIONAL EXPENSES          
           
           
           
           
           
OTHER INCOME          
           
           
           
OTHER EXPENSES          
DIP Loan Fee   -    125,000.00 
           
           
OTHER REORGANIZATION EXPENSES          
Legal Fees   3,755,619.57    5,787,117.66 
           
           
           

 

Reorganization Items - Interest Earned on Accumulated Cash from Chapter 11:

Interest earned on cash accumulated during the chapter 11 case, which would not have been earned but for the bankruptcy proceeding, should be reported as a reorganization item.

  

PAGE 4 OF 9
 

 

In re   KIT digital, Inc.   Case No.   13-11298 (REG)
   Debtor   Reporting Period:   July 1 2013 to July 31 2013

 

BALANCE SHEET

The Balance Sheet is to be completed on an accrual basis only.  Pre-petition liabilities must be classified separately from post-petition obligations.

 

ASSETS   BOOK VALUE AT END OF CURRENT REPORTING MONTH     BOOK VALUE AT END OF PRIOR REPORTING MONTH     BOOK VALUE ON PETITION DATE OR SCHEDULED     Comments
CURRENT ASSETS                      
Unrestricted Cash and Equivalents     273,173.13       19,065.74       172.67      
Restricted Cash and Cash Equivalents (see continuation sheet)       2,000,704.99       2,000,482.24       2,089,119.93      
Accounts Receivable (Net)     -       -       -      
Notes Receivable     -       -       -      
Inventories     -       -       -      
Prepaid Expenses     525,453.18       580,518.30       528,002.29      
Professional Retainers     -       -       -      
Other Current Assets (attach schedule)     17,475,105.36       17,191,721.24       17,604,502.39      
TOTAL CURRENT ASSETS     20,274,436.66       19,791,787.52       20,221,797.28      
PROPERTY & EQUIPMENT                            
Real Property and Improvements     -       -       -      
Machinery and Equipment     1,559,399.56       1,559,399.56       1,559,399.56      
Furniture, Fixtures and Office Equipment     62,824.09       62,824.09       62,824.09      
Leasehold Improvements     -       -       -      
Vehicles     -       -       -      
Less:   Accumulated Depreciation     (935,706.06 )     (898,124.81 )     (822,906.69 )    
TOTAL PROPERTY & EQUIPMENT     686,517.59       724,098.84       799,316.96      
OTHER ASSETS                            
Amounts due from Insiders*     -       -       -      
Other Assets (attach schedule)     220,886,486.82       220,886,486.82       220,886,486.82      
TOTAL OTHER ASSETS     220,886,486.82       220,886,486.82       220,886,486.82      
TOTAL ASSETS     241,847,441.07       241,402,373.18       241,907,601.06      
                             
LIABILITIES AND OWNER EQUITY     BOOK VALUE AT END OF CURRENT REPORTING MONTH       BOOK VALUE AT END OF PRIOR REPORTING MONTH       BOOK VALUE ON PETITION DATE      
LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition)                            
Accounts Payable     2,584,464.54       131,558.30       -      
Taxes Payable (refer to FORM MOR-4)     -       -       -      
Wages Payable     -       -       -      
Notes Payable     -       -       -      
Rent / Leases - Building/Equipment     -       -       -      
Secured Debt / Adequate Protection Payments     -       -       -      
Professional Fees     2,182,757.37       1,709,000.00       29,750.00      
Amounts Due to Insiders*     -       -       10,000.00      
Other Post-petition Liabilities (attach schedule)     4,152,292.22       2,750,808.57       1,500,000.00      
TOTAL POST-PETITION LIABILITIES     8,919,514.13       4,591,366.87       1,539,750.00      
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)                            
Secured Debt     10,226,355.18       10,226,355.18       10,226,355.18      
Priority Debt     78,799.43       78,799.43       78,799.43      
Unsecured Debt     46,195,648.65       45,960,423.42       46,314,000.71     Includes $32.2 M of equity related liabilities, such as Acquisition/Earnouts, which the debtor believes will be subordinated  pursuant to section 510(b) of the Bankruptcy Code
TOTAL PRE-PETITION LIABILITIES     56,500,803.26       56,265,578.03       56,619,155.32      
TOTAL LIABILITIES     65,420,317.39       60,856,944.90       58,158,905.32      
OWNERS' EQUITY                            
Capital Stock     6,089.37       6,089.37       6,089.37      
Additional Paid-In Capital     568,067,878.68       568,067,878.68       568,067,878.68      
Partners' Capital Account     -       -       -      
Owner's Equity Account     -       -       -      
Retained Earnings - Pre-Petition     (384,274,882.77 )     (384,274,882.77 )     (384,274,882.77 )    
Retained Earnings - Post-petition     (7,371,961.60 )     -       (50,389.54 )    
Adjustments to Owner Equity (attach schedule)     -       -       -      
Post-petition Contributions  (attach schedule)     -       -       -      
NET OWNERS’ EQUITY     176,427,123.68       183,799,085.28       183,748,695.74      
TOTAL LIABILITIES AND OWNERS' EQUITY     241,847,441.07       244,656,030.18       241,907,601.06      
*"Insider" is defined in 11 U.S.C. Section 101(31).                            
      (0.00 )                    
BALANCE SHEET - continuation section               
ASSETS  BOOK VALUE AT END OF CURRENT REPORTING MONTH   BOOK VALUE AT END OF PRIOR REPORTING MONTH   BOOK VALUE ON
PETITION DATE		  
Other Current Assets               
Investments   639,506.00    639,506.00    639,506.00  
Earnout Receivable- ST   1,690,000.00    1,690,000.00    1,690,000.00    
Intercompany, net  15,145,599.36   14,862,215.24   15,274,996.39    
Total  17,475,105.36   17,191,721.24   17,604,502.39    
                   
                   
Other Assets                  
Goodwill   15,485,347.30    15,485,347.30    15,485,347.30    
Investments in Subsidiaries   197,807,230.87    197,807,230.87    197,807,230.87    
Earnout Receivable, LT   6,510,000.00    6,510,000.00    6,510,000.00    
Note Receivable, LT  1,083,908.65   1,083,908.65   1,083,908.65    
Total  220,886,486.82   220,886,486.82   220,886,486.82    
                   
LIABILITIES AND OWNER EQUITY   BOOK VALUE AT END OF CURRENT REPORTING MONTH    BOOK VALUE AT END OF PRIOR REPORTING MONTH    BOOK VALUE ON PETITION DATE    
Other Post-petition Liabilities                  
Liability on Escrow in Respect of Plan Sponsor Group Deposit   1,500,000.00    1,500,000.00    1,500,000.00    
DIP Loan plus interest  2,652,292.22   1,250,808.57   -    
Total  4,152,292.22   2,750,808.57   1,500,000.00    
                   
Adjustments to Owner’s Equity                  
                   
                   
                   
Post-Petition Contributions                  

 

Restricted Cash:   Cash that is restricted for a specific use and not available to fund operations.

Typically, restricted cash is segregated into a separate account, such as an escrow account.

Includes $1.5m Escrow Account in Respect of Plan Sponsor Group Deposit

 

PAGE 5 OF 9
 

 

In re   KIT digital, Inc.   Case No.   13-11298 (REG)
   Debtor   Reporting Period:   July 1 2013 to July 31 2013

 

STATUS OF POST-PETITION TAXES

 

The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the

amount should be zero.

 

Attach photocopies of IRS Form 6123 or payment receipt to verify payment or deposit of federal payroll taxes.

 

Attach photocopies of any tax returns filed during the reporting period.

 

Federal  Beginning Tax   Amount Withheld and/or Accrued   Amount Paid   Date Paid   Check # or EFT   Ending Tax 
Withholding                        
FICA-Employee                              
FICA-Employer                              
Unemployment                              
Income                              
Other:_____________                              
Total Federal Taxes                              
State and Local                              
Withholding                              
Sales                              
Excise                              
Unemployment                              
Real Property                              
Personal Property                              
Other:_____________                              
Total State and Local                              
                               
Total Taxes                              

 

SUMMARY OF UNPAID POST-PETITION DEBTS

 

Attach aged listing of accounts payable.

 

       Number of Days Past Due     
   Current   0-30   31-60   61-90   Over 91   Total 
Accounts Payable   2,584,464.54                        2,584,464.54 
Wages Payable                            - 
Taxes Payable                            - 
Rent/Leases-Building                            - 
Rent/Leases-Equipment                            - 
Secured Debt/Adequate Protection Payments                            - 
Professional Fees   2,182,757.37                        2,182,757.37 
Amounts Due to Insiders                            - 
Other:______________   -                        - 
Other:______________                        - 
Total Post-petition Debts  4,767,221.91   -   -   -   -   4,767,221.91 

 

Explain how and when the Debtor intends to pay any past due post-petition debts.    
             
             
           

 

PAGE 6 OF 9
 

 

In re   KIT digital, Inc.   Case No.   13-11298 (REG)
   Debtor   Reporting Period:   July 1 2013 to July 31 2013

 

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

 

Accounts Receivable Reconciliation  Amount
Total Accounts Receivable at the beginning of the reporting period  none
Plus:  Amounts billed during the period   
Less:  Amounts collected during the period   
Total Accounts Receivable at the end of the reporting period   

 

Accounts Receivable Aging  0-30 Days  31-60 Days  61-90 Days  91+ Days  Total
0 - 30 days old               
31 - 60 days old               
61 - 90 days old               
91+ days old               
Total Accounts Receivable               
                
Less:  Bad Debts (Amount considered uncollectible)               
                
Net Accounts Receivable               

 

TAXES RECONCILIATION AND AGING

 

Taxes Payable  0-30 Days  31-60 Days  61-90 Days  91+ Days  Total
0 - 30 days old               
31 - 60 days old               
61 - 90 days old               
91+ days old               
Total Taxes Payable               
Total Accounts Payable               

 

PAGE 7 OF 9
 

 

In re   KIT digital, Inc.   Case No.   13-11298 (REG)
   Debtor   Reporting Period:   July 1 2013 to July 31 2013

 

PAYMENTS TO INSIDERS AND PROFESSIONALS

 

Of the total disbursements shown on the Cash Receipts and Disbursements Report (MOR-1) list the amount paid to insiders (as defined in Section 101(31) (A)-(F) of the U.S. Bankruptcy Code) and to professionals.  For payments to insiders, identify the type of compensation paid (e.g. Salary, Bonus, Commissions, Insurance, Housing Allowance, Travel, Car Allowance, Etc.).  Attach additional sheets if necessary.

 

INSIDERS
NAME  TYPE OF PAYMENT  AMOUNT PAID   TOTAL PAID TO DATE 
Fabrice Hamaide  Salary for CFO   17,500.00    87,500.00 
Greg Peterson  BOD Fees   30,000.00    60,000.00 
Seth Hamot  BOD Fees   30,000.00    60,000.00 
William Russell  BOD Fees  30,000.00   60,000.00 
              
TOTAL PAYMENTS TO INSIDERS     107,500.00   267,500.00 

 

PROFESSIONALS
NAME  DATE OF COURT ORDER AUTHORIZING PAYMENT  AMOUNT APPROVED   AMOUNT PAID   TOTAL PAID TO DATE   TOTAL INCURRED & UNPAID* 
American Legal Claims           -    96,534.00    67,595.34 
Husch Blackwell LLP           -    10,000.00    - 
Special Counsel           -    32,718.09    9,292.50 
Kaufhold Gaskin LLP           -    10,000.00    7,661.70 
Simon, Ray & Winikka LLP           31,880.99    125,658.13    34,706.54 
Rubin, Hay & Gould, P.C.           -    5,000.00    - 
Hamilton Brook Smith Reynold           -    5,600.00    5,560.00 
Broadridge ICS           -    13,735.69    841.95 
Williams Mullen Clark & Dobbins, P.C.           -    -    6,632.52 
Rottenberg Lipman Rich, PC           -    -    6,718.21 
Richards, Layton & Finger           -    -    33,196.59 
Brown Rudnick LLP           -    -    289,868.53 
Beck Redden LLP           -    -    8,580.96 
Deutsche Bank           -    -    750,000.00 
Cooley LLP  7/5/2013   145,736.52    145,736.52    145,736.52    156,717.99 
Bracewell & Giuliani LLP  7/5/2013   663,877.95    663,877.95    663,877.95    1,070,539.01 
Norton Rose     -   40,333.51   40,333.51   13,345.23 
TOTAL PAYMENTS TO PROFESSIONALS  809,614.47   881,828.97   1,149,193.89   2,461,257.07 

 

* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED

 

POST-PETITION STATUS OF SECURED NOTES, LEASES PAYABLE

AND ADEQUATE PROTECTION PAYMENTS

 

NAME OF CREDITOR  SCHEDULED  
MONTHLY PAYMENT DUE		  AMOUNT PAID DURING MONTH   TOTAL UNPAID POST-PETITION 
WTI Interest / Fee      -    - 
DIP Loan Interest  7/15/2013   13,281.67    - 
DIP Loan Interest  8/15/2013     27,749.58 
              
TOTAL PAYMENTS     13,281.67   27,749.58 

 

PAGE 8 OF 9
 

 

 

In re   KIT digital, Inc.   Case No.   13-11298 (REG)
   Debtor   Reporting Period:   July 1 2013 to July 31 2013

 

DEBTOR QUESTIONNAIRE

 

    Must be completed each month.  If the answer to any of the questions is “Yes”, provide a detailed explanation of each item.  Attach additional sheets if necessary. Yes No Comments
1   Have any assets been sold or transferred outside the normal course of business this reporting period?    X  
2   Have any funds been disbursed from any account other than a debtor in possession account this reporting period?    X  
3   Is the Debtor delinquent in the timely filing of any post-petition tax returns?    X  
4   Are workers compensation, general liability or other necessary insurance coverages expired or cancelled, or has the debtor received notice of expiration or cancellation of such policies?   X   DO insurance was renewed on 5-6-13 with payments to be made in June (std.terms)
5   Is the Debtor delinquent in paying any insurance premium payment?   X  
6   Have any payments been made on pre-petition liabilities this reporting period?   X  
7   Are any post petition receivables (accounts, notes or loans) due from related parties?   X  
8   Are any post petition payroll taxes past due?   X  
9   Are any post petition State or Federal income taxes past due?   X  
10   Are any post petition real estate taxes past due?   X  
11   Are any other post petition taxes past due?   X  
12   Have any pre-petition taxes been paid during this reporting period?   X  
13   Are any amounts owed to post petition creditors delinquent?   X  
14   Are any wage payments past due?   X  
15   Have any post petition loans been been received by the Debtor from any party?   X  
16   Is the Debtor delinquent in paying any U.S. Trustee fees?   X  
17   Is the Debtor delinquent with any court ordered payments to attorneys or other professionals?   X  
18   Have the owners or shareholders received any compensation outside of the normal course of business?   X  

 

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