0001012870-01-502150.txt : 20011010
0001012870-01-502150.hdr.sgml : 20011010
ACCESSION NUMBER: 0001012870-01-502150
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20010920
ITEM INFORMATION: Other events
ITEM INFORMATION: Financial statements and exhibits
FILED AS OF DATE: 20011004
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: ADAPTIVE BROADBAND CORP
CENTRAL INDEX KEY: 0000016357
STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663]
IRS NUMBER: 941668412
STATE OF INCORPORATION: DE
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 000-07428
FILM NUMBER: 1751777
BUSINESS ADDRESS:
STREET 1: 1143 BORREGAS AVE
CITY: SUNNYVALE
STATE: CA
ZIP: 94089
BUSINESS PHONE: 4087324000
MAIL ADDRESS:
STREET 1: ADAPTIVE BROADBAND CORPORATION
STREET 2: 1143 BORREGAS AVE
CITY: SUNNYVALE
STATE: CA
ZIP: 94089
FORMER COMPANY:
FORMER CONFORMED NAME: CALIFORNIA MICROWAVE INC
DATE OF NAME CHANGE: 19920703
8-K
1
d8k.txt
FORM 8-K
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): September 20, 2001
ADAPTIVE BROADBAND CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
(State of incorporation)
000-07428 94-1668412
(Commission File No.) (IRS Employer Identification No.)
2055 GATEWAY PLACE, SUITE 400
SAN JOSE, CALIFORNIA 95110
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (408) 451-3940
_________________________
Item 5. Other Events.
Adaptive Broadband Corporation, Debtor and Debtor in Possession, has
submitted a Chapter 11 Monthly Operating Report (General Business Case) for the
month ended August 25, 2001 (the "August Monthly Operating Report") in the
matter In re Adaptive Broadband Corporation (Case No. 01-53685 ASW) in the U.S.
Bankruptcy Court, Northern District of California, San Jose Division. The August
Monthly Operating Report for the month ended August 25, 2001, dated September
20, 2001 is attached hereto as Exhibit 99.1.
Item 7. Exhibits.
99.1 Monthly Operating Report for the month ended August 25, 2001,
dated September 20, 2001.
1.
SIGNATURE
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.
Adaptive Broadband Corporation
Dated: October 3, 2001 By: /s/ Daniel L. Scharre
-----------------------------------
Daniel L. Scharre
Chairman, President and Chief
Executive Officer
INDEX TO EXHIBITS
Exhibit
Number Description
------ -----------
99.1 Monthly Operating Report for the month ended August 25, 2001,
dated September 20, 2001.
EX-99.1
3
dex991.txt
MONTHLY OPERATING REPORT FOR 08/25/2001
Exhibit 99.1
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re: Adaptive Broadband Corporation Case No. 01-53685 ASW
-------------
2055 Gateway Place, Suite 400
San Jose, CA 95110 CHAPTER 11
MONTHLY OPERATING REPORT
(GENERAL BUSINESS CASE)
-----------------------------------------
SUMMARY OF FINANCIAL STATUS
MONTH ENDED: 8/25/2001 (1) PETITION DATE: 07/26/01
--------------- ---------
1. Debtor in possession (or trustee) hereby submits this Monthly Operating
Report on the Accrual Basis of accounting (or if checked here the Office of
the U.S. Trustee or the Court has approved the Cash Basis of Accounting for
the Debtor).
Dollars reported in $1
--
2. Asset and Liability Structure End of Current End of Prior As of Petition
------------
Month Month Filing
----- ----- ------
a. Current Assets $ 32,205,289 N/A
------------ ----------
b. Total Assets $ 58,023,014 N/A $ 58,612,410
------------ ---------- ------------
c. Current Liabilities $ 580,531 N/A
------------ ----------
d. Total Liabilities $ 28,953,473 N/A $ 28,499,554
------------ ----------- ------------
Cumulative
3. Statement of Cash Receipts & Disbursements for Month Current Month Prior Month (Case to Date)
------------- ----------- --------------
a. Total Receipts $ 250,964 N/A $ 250,964
------------ ----------- ------------
b. Total Disbursements $ 358,465 N/A $ 358,465
------------ ----------- ------------
c. Excess (Deficiency) of Receipts Over Disbursements (a - b) ($107,501) N/A ($107,501)
------------ ----------- ------------
d. Cash Balance Beginning of Month $ 26,867,358 N/A $ 26,867,358
------------ ----------- ------------
e. Cash Balance End of Month (c + d) (2) $ 26,759,857 N/A $ 26,759,857
------------ ----------- ------------
Cumulative
Current Month Prior Month (Case to Date)
------------- ----------- --------------
4. Profit/(Loss) from the Statement of Operations N/A N/A N/A
------------ ----------- ------------
5. Account Receivables (Pre and Post Petition)-See Sch A $ 261,000 N/A
------------ -----------
6. Post-Petition Liabilities $ 580,531 N/A
------------ -----------
7. Past Due Post-Petition Account Payables (over 30 days) $ 0 N/A
------------ -----------
At the end of this reporting month: Yes No
--- --
8. Have any payments been made on pre-petition debt, other than payments in the normal X
-------- ________
course to secured creditors or lessors? (if yes, attach listing including date of
payment, amount of payment and name of payee)-Schedule attached & marked as "A".
9. Have any payments been made to professionals? (if yes, attach listing including date of X
________ --------
payment, amount of payment and name of payee)
10. If the answer is yes to 8 or 9, were all such payments approved by the court? X
-------- ________
11. Have any payments been made to officers, insiders, shareholders, relatives? (if yes, X
-------- ________
attach listing including date of payment, amount and reason for payment,
and name of payee)
12. Is the estate insured for replacement cost of assets and for general liability? X
-------- ________
13. Are a plan and disclosure statement on file? X
________ --------
X
14. Was there any post-petition borrowing during this reporting period? ________ --------
15. Check if paid: Post-petition taxes X ; U.S. Trustee Quarterly Fees ___; Check if filing is current for: Post-petition
----
tax reporting and tax returns: ____.
(Attach explanation, if post-petition taxes or U.S. Trustee Quarterly Fees are not
paid current or if post-petition tax reporting and tax return filings are not current.)
I declare under penalty of perjury I have reviewed the above summary and
attached financial statements, and after making reasonable inquiry believe these
documents are correct.
Date: 9/20/2001 /s/ Daniel L. Scharre
--------- --------------------------------------------------------
Responsible Individual---Daniel Scharre, CEO & President
(1) Adaptive Broadband Corporation utilizes a fiscal calendar (a 4-week month,
4-week month, 5-week month) that does not directly correspond with calendar
month-end dates. Accordingly, this Monthly Operating Report reflects an
ending-date consistent with the Debtor's books and records. To the extent
the U.S. Trustee requests that the Monthly Operating Report be prepared as
of calendar month-end dates, the Debtor will work to adhere to that
requirement. It should be noted, however, that meeting such a requirement
will constitute an additional burden on the Debtor, which is operating with
a depleted finance staff.
(2) Represents the unadjusted cash balance at end of period. Adjusted cash
balance at end of period (per bank) is $26,424,225. See attached Statement
of Cash Receipts and Disbursements.
BALANCE SHEET
(General Business Case)
For the Month Ended 08/25/01
----------
Assets
From Schedules Market Value
-------------- ------------
Current Assets
Cash and cash equivalents - unrestricted (Bank Balances) $21,139,423
---------------
Cash and cash equivalents - restricted $ 5,284,802
---------------
Accounts receivable (net) A $ 261,000
---------------
Inventory B $ 3,642,187
---------------
Prepaid expenses $ 1,427,877
---------------
Professional retainers (estimate only) $ 450,000
---------------
Other:
------------------------------------------------- ---------------
-------------------------------------------------------- ---------------
Total Current Assets $32,205,289
---------------
Property and Equipment (Market Value)
Real property C $ 0
---------------
Machinery and equipment D $ 1,499,094
---------------
Furniture and fixtures D $ 0
---------------
Office equipment D $ 0
---------------
Leasehold improvements D $ 720,328
---------------
Computer, Hardware & Software D $ 2,499,987
---------------
Other: D
-------------------------------------------------- ---------------
D
--------------------------------------------------------- ---------------
D
--------------------------------------------------------- ---------------
D
--------------------------------------------------------- ---------------
D
--------------------------------------------------------- ---------------
Total Property and Equipment $ 4,719,409
---------------
Other Assets
Loans to shareholders
---------------
Loans to affiliates - secured $ 288,145
---------------
Loans to affiliates (net) - unsecured $19,587,340
--------------------------------------------------------- ---------------
Notes Receivables $ 1,029,137
--------------------------------------------------------- ---------------
Security Deposits $ 193,694
--------------------------------------------------------- ---------------
--------------------------------------------------------- ---------------
Total Other Assets $21,098,316
---------------
Total Assets $58,023,014
===============
NOTE: At the guidance of the U.S. Trustee, Adaptive Broadband Corporation is
----
presenting its assets at cost value less accumulated depreciation, if any.
In addition, Accounts Receivable, Inventory, and Property Plant and
Equipment are reflective of a provisional impairement write-down.
Liabilities and Equity
(General Business Case)
Liabilities From Schedules
Post-Petition
Current Liabilities
Salaries and wages $ 30,000
-----------------
Payroll taxes $ 144,670
-----------------
Real and personal property taxes
-----------------
Income taxes
-----------------
Sales taxes
-----------------
Notes payable (short term)
-----------------
Accounts payable (trade) A $ 105,861
-----------------
Real property lease arrearage
-----------------
Personal property lease arrearage
-----------------
Accrued professional fees (estimate only) $ 300,000
-----------------
Current portion of long-term post-petition debt (due within 12 months)
-----------------
Other:
------------------------------------------ -----------------
----------------------------------------------------- -----------------
----------------------------------------------------- -----------------
Total Current Liabilities $ 580,531
-----------------
Long-Term Post-Petition Debt, Net of Current Portion
-----------------
Total Post-Petition Liabilities $ 580,531
-----------------
Pre-Petition Liabilities (allowed amount) - See Footnotes to Schedule F
Secured claims F $ 0
-----------------
Priority unsecured claims F $ 159,165
-----------------
General unsecured claims F $ 28,213,777
-----------------
Total Pre-Petition Liabilities $ 28,372,942
-----------------
Total Liabilities $ 28,953,473
-----------------
Equity (Deficit)
Retained Earnings/(Deficit) at time of filing ($131,585,499)
-----------------
Capital Stock $ 3,777,628
-----------------
Additional paid-in capital $ 157,920,727
-----------------
Cumulative profit/(loss) since filing of case (Note <1>) ($1,043,315)
-----------------
Post-petition contributions/(distributions) or (draws) -----------------
----------------------------------------------------- -----------------
Market value adjustment
-----------------
Total Equity (Deficit) $ 29,069,541
-----------------
Total Liabilities and Equity (Deficit) $ 58,023,014
=================
Note 1--> Includes, in addition to Cash Expenditures, accruals of expenses, bank
reconciliation issues and cost of goods sold.
SCHEDULES TO THE BALANCE SHEET
(General Business Case)
Schedule A
Accounts Receivable and (Net) Payable
Receivables and Payables Agings Accounts Receivable Accounts Payable Past Due
[Pre and Post Petition] [Post Petition] Post Petition Debt
----------------------- ------------- ------------------
0-30 Days $ 0 $ 105,861
----------------------- ----------
31-60 Days $ 0 $ 0
----------------------- ----------
61-90 Days $ 44,151 $ 0 $ 0
----------------------- ---------- -----------------
91+Days $ 9,105,121 $ 0
----------------------- ----------
Total accounts receivable/payable $ 9,149,272 $ 105,861
----------------------- ==========
Allowance for doubtful accounts $ 8,888,272
-----------------------
Accounts receivable (net) $ 261,000
=======================
Schedule B
Inventory/Cost of Goods Sold
Inventory(ies)
Balance at
Types and Amount of Inventory(ies) End of Month Cost of Goods Sold
---------------------------------- ------------ ------------------
Inventory Beginning of Month $ 3,800,000
-----------------
Add -
Retail/Restaurants - Net purchase -----------------
Product for resale Direct labor -----------------
---------------
Manufacturing overhead -----------------
Distribution - Freight in -----------------
Products for resale --------------- Other: -----------------
--------------------------------------- -----------------
Manufacturer -
--------------------------------------- -----------------
Raw Materials $ 10,391,005
---------------
Consignment Inventory $ 2,702,024 Less -
---------------
Finished goods $ 42,955,840 Inventory End of Month $ 3,642,187
--------------- -----------------
Shrinkage -----------------
Inventory Write-Down Provision ($52,406,682) Personal Use -----------------
---------------
------------------------------ Cost of Goods Sold $ 157,813
=================
------------------------------
TOTAL $ 3,642,187
===============
Method of Inventory Control Inventory Valuation Methods
Do you have a functioning perpetual inventory system? Indicate by a checkmark method of inventory used.
Yes X No______
------
How often do you take a complete physical inventory? Valuation methods -
FIFO cost _____
Weekly ________ LIFO cost _____
Monthly ________ Lower of cost or market X
Quarterly X -----
-------- Retail method _____
Semi-annually ________ Other _____
Annually ________ Explain
Date of last physical inventory was 7/13/01
____________________________________________________
____________________________________________________
Date of next physical inventory is Not yet determined
------------------ ____________________________________________________
Schedule C
Real Property
Description Cost Market Value
---- ------------
N/A N/A N/A
--------------------------------------------------------- ---------------- -------------------
--------------------------------------------------------- ---------------- -------------------
--------------------------------------------------------- ---------------- -------------------
--------------------------------------------------------- ---------------- -------------------
--------------------------------------------------------- ---------------- -------------------
--------------------------------------------------------- ---------------- -------------------
Total $ 0 $ 0
================ ===================
Schedule D
Other Depreciable Assets
Description Cost Market Value
---- ------------
Machinery & Equipment -
Office Equipment, Furniture & Fixtures included $1,499,094 $1,499,094
--------------------------------------------------------- ---------------- -------------------
--------------------------------------------------------- ---------------- -------------------
--------------------------------------------------------- ---------------- -------------------
--------------------------------------------------------- ---------------- -------------------
Total $1,499,094 $1,499,094
================ ===================
Furniture & Fixtures -
$ 0 $ 0
--------------------------------------------------------- ---------------- -------------------
--------------------------------------------------------- ---------------- -------------------
--------------------------------------------------------- ---------------- -------------------
--------------------------------------------------------- ---------------- -------------------
Total $ 0 $ 0
================ ===================
Office Equipment -
---------------- -------------------
--------------------------------------------------------- ---------------- -------------------
--------------------------------------------------------- ---------------- -------------------
Total $ 0 $ 0
================ ===================
Leasehold Improvements -
$ 720,328 $ 720,328
--------------------------------------------------------- ---------------- -------------------
--------------------------------------------------------- ---------------- -------------------
--------------------------------------------------------- ---------------- -------------------
--------------------------------------------------------- ---------------- -------------------
Total $ 720,328 $ 720,328
================ ===================
Computer, Hardware & Software
---------------------------------------------------------
$2,499,987 $2,499,987
--------------------------------------------------------- ---------------- -------------------
--------------------------------------------------------- ---------------- -------------------
--------------------------------------------------------- ---------------- -------------------
--------------------------------------------------------- ---------------- -------------------
Total $2,499,987 $2,499,987
================ ===================
NOTE:
-----
At the guidance of the U.S. Trustee, Adaptive Broadband Corporation is
presenting its assets at cost value less accumulated depreciation, if
any. In addition, Accounts Receivable, Inventory, and Property Plant and
Equipment are reflective of a provisional impairment write-down.
Schedule E
Aging of Post-Petition Taxes
(As of End of the Current Reporting Period)
Taxes Payable 0-30 Days 31-60 Days 61-90 Days 91+ Days Total
--------- ---------- ---------- -------- -----
Federal
Income Tax Withholding $27,074 $ 57,910 $ 84,984
----------------- --------------- -------------- ------------ --------------
FICA - Employee $ 4,620 $ 16,130 $ 20,750
----------------- --------------- -------------- ------------ --------------
FICA - Employer $ 4,620 $ 16,130 $ 20,750
----------------- --------------- -------------- ------------ --------------
Unemployment (FUTA) $ 0
----------------- --------------- -------------- ------------ --------------
Income $ 0
----------------- --------------- -------------- ------------ --------------
Other (Attach List) $ 0
----------------- --------------- -------------- ------------ --------------
Total Federal Taxes $36,314 $ 90,170 $ 0 $ 0 $126,484
----------------- --------------- -------------- ------------ --------------
State and Local
Income Tax Withholding $ 6,650 $ 10,909 $ 17,559
----------------- --------------- -------------- ------------ --------------
Unemployment (UT) $ 0
----------------- --------------- -------------- ------------ --------------
Disability Insurance (DI) $ 203 $ 424 $ 627
----------------- --------------- -------------- ------------ --------------
Empl. Training Tax (ETT) $ 0
----------------- --------------- -------------- ------------ --------------
Sales $ 0
----------------- --------------- -------------- ------------ --------------
Excise $ 0
------------------ --------------- -------------- ------------ --------------
Real property $ 0
----------------- --------------- -------------- ------------ --------------
Personal property $ 0
----------------- --------------- -------------- ------------ --------------
Income $ 0
----------------- --------------- -------------- ------------ --------------
Other (Attach List) $ 0
----------------- --------------- -------------- ------------ --------------
Total State & Local Taxes $ 6,853 $ 11,333 $ 0 $ 0 $ 18,186
----------------- --------------- -------------- ------------ --------------
Total Taxes $43,167 $101,503 $ 0 $ 0 $144,670
================= =============== ============== ============ ==============
See Attached Schedule E Footnote
Schedule F
Pre-Petition Liabilities
Claimed Allowed
List Total Claims For Each Classification - Amount Amount
------------------------------------------- ------ ------
Secured claims $ 0 $ 0
-------------- ------------
Priority claims other than taxes $ 159,165 $ 159,165
-------------- ------------
Priority tax claims $ 0 $ 0
-------------- ------------
General unsecured claims $28,213,777 $28,213,777
-------------- ------------
See Schedule F Footnotes on next page.
Schedule G
Rental Income Information
(Not Applicable) to General Business Cases
Schedule H
Recapitulation of Funds Held at End of Month (8/31/01)
Account 1 Account 2 Account 3 Account 4
--------- --------- --------- ---------
Bank Bank of America Bank of America Union Bank Merrill Lynch
----------------- ----------------- ----------------- ---------------
Account Type Debtor In Poss. Master Account CD Money Market
----------------- ----------------- ----------------- ---------------
Account No. 12339-36178 12338-10046 64590-18088 318-3251209-0
----------------- ----------------- ----------------- ---------------
Account Purpose Operations Sweeps Account Gain Interest Gain Interest
----------------- ----------------- ----------------- ---------------
Balance, End of Month $ 305,816 $973,604 $2,221,406 $18,992,779
----------------- ----------------- ----------------- ---------------
Total Funds on Hand for all Accounts $26,421,934
=================
Attach copies of the month end bank statement(s), reconciliation(s), and the
check register(s) to the Monthly Operating Report.
Increase/(Decrease) in Cash and Cash Equivalents
For the Month Ended 08/25/01
----------------
Actual Cumulative
Current Month (Case to Date)
------------- --------------
Cash Receipts
Rent/Leases Collected $ 0
---------------- ----------------
Cash Received from Sales $ 171,285 $ 171,285
---------------- ----------------
Interest Received (estimated) $ 70,816 $ 70,816
---------------- ----------------
Borrowings $ 0
---------------- ----------------
Funds from Shareholders, Partners, or Other Insiders $ 0
---------------- ----------------
Capital Contributions $ 0
---------------- ----------------
Vendor Refunds & Miscellaneous Receipts $ 8,863 $ 8,863
------------------------------------------------------- ---------------- ----------------
$ 0
------------------------------------------------------- ---------------- ----------------
$ 0
------------------------------------------------------- ---------------- ----------------
$ 0
------------------------------------------------------- ---------------- ----------------
$ 0
------------------------------------------------------- ---------------- ----------------
$ 0
---------------- ----------------
Total Cash Receipts $ 250,964 $ 250,964
---------------- ----------------
Cash Disbursements
Payments for Inventory $ 0
---------------- ----------------
Selling $ 0
---------------- ----------------
Miscellaneous/G&A $ 879 $ 879
---------------- ----------------
Rent $ 184,189 $ 184,189
---------------- ----------------
Principal Payments on Debt $ 0
---------------- ----------------
Interest Paid $ 0
---------------- ----------------
Rent/Lease:
Personal Property $ 0
---------------- ----------------
Real Property $ 0
---------------- ----------------
Amount Paid for Compensation
Salaries $ 85,589 $ 85,589
---------------- ----------------
Contract Labor $ 16,978 $ 16,978
---------------- ----------------
Commissions/Royalties $ 0
---------------- ----------------
Expense Reimbursements $ 0
---------------- ----------------
Other (Fringe) $ 26,394 $ 26,394
---------------- ----------------
Salaries/Commissions (less employee withholding) $ 0
---------------- ----------------
Management Fees $ 0
---------------- ----------------
Taxes:
Employee Withholding $ 0
---------------- ----------------
Employer Payroll Taxes $ 0
---------------- ----------------
Real Property Taxes $ 0
---------------- ----------------
Other Taxes $ 0
---------------- ----------------
Other Cash Outflows: $ 0
---------------- ----------------
Travel & Meetings $ 0 $ 0
------------------------------------------------- ---------------- ----------------
Technology & Phone $ 90 $ 90
------------------------------------------------- ---------------- ----------------
Engineering & Operations $ 360 $ 360
------------------------------------------------- ---------------- ----------------
Professional Consulting Services $ 253 $ 253
------------------------------------------------- ---------------- ----------------
Moving Expenses $ 18,617 $ 18,617
------------------------------------------------- ---------------- ----------------
Disbursements of China subsidiary (est.) $ 25,116 $ 25,116
------------------------------------------------- ---------------- ----------------
Total Cash Disbursements: $ 358,465 $ 358,465
---------------- ----------------
Net Increase (Decrease) in Cash ($107,501) ($107,501)
---------------- ----------------
Cash Balance, Beginning of Period (per bank) $ 26,867,358 $ 26,867,358
---------------- ----------------
Cash Balance, End of Period (unadjusted) $ 26,759,857 $ 26,759,857
================ ================
Loss in market value - Reliance Trust (estimated) (1) ($161,759) ($161,759)
Oustanding checks/unreconciled difference (net) (2) ($173,873) ($173,873)
---------------- ----------------
Cash Balance, End of Period (adjusted - per bank) (3) $ 26,424,225 $ 26,424,225
================ ================
(1) Adaptive Broadband Corporation directed Reliance Trust to reposition its
SEDCP fund holdings into the most conservative investments, pending
resolution of Debtor's entitlement to such funds. The Debtor believes
Reliance has acted pursuant to this direction. Prior to this transfer, the
market value of the fund had decreased by approximately $162K since it was
last reported (and included in the beginning balance of $26,867,358).
(2) In addition, the Company is in the process of reconciling its bank
accounts to quantify outstanding checks and unreconciled differences.
(3) Adjusted cash balance (per bank) was obtained from a bank account balance
listing created by Adaptive Broadband Corporation as of 8/24/01.
The 8/24/01 cash account balances were obtained by Adaptive through
correspondence with bank employees.
Schedule E - Footnote
---------------------
Explanation for Aging of Post-Petition Taxes
Processing of the Debtor's payroll is typically handled by the
Debtor's payroll processor, ADP. In addition to processing the
Debtor's payroll, ADP typically calculates the Debtor's share of
Social Security and Medicare obligations with respect to each payroll,
deducts such amounts from the Debtor's payroll account, and forwards
such amounts to the appropriate taxing authorities. However, for the
Debtor's last payroll before its bankruptcy filing, the deduction from
the Debtor's payroll account for the Debtor's share of payroll taxes
for such payroll was not completed before the Debtor's payroll account
was frozen by the Debtor's bankruptcy filing. Accordingly, the
Debtor's share of payroll tax obligations on that final prepetition
payroll, totaling $13,551.58, was not collected or paid by ADP
("Prepetition Payroll Taxes").
As one of the Debtor's "first day" motions, the Debtor requested and
obtained authority to pay to the appropriate taxing authorities
deductions from employee paychecks for employees' shares of
----------
prepetition payroll taxes, and to pay prepetition employee wages that
were due and owing and the Debtor's share of payroll taxes for such
wages; however, because the Debtor was not aware that the Prepetition
Payroll Taxes were unpaid, the Debtor did not request or obtain
authority to pay its unpaid share of prepetition payroll taxes on
prepetition wages that were paid prior to the Petition Date.
Accordingly, on September 17, 2001 the Debtor requested authority to
pay the Prepetition Payroll Taxes, totaling $13,551.58, to the
appropriate taxing authorities. ADP had refused to collect and pay any
---
of the Debtor's payroll taxes, including payroll taxes incurred
post-petition with respect to post-petition payrolls paid through ADP,
unless the Prepetition Payroll Taxes were paid in full. As a result,
the Debtor may have incurred needless penalties and interest with
respect to both its Prepetition Payroll Taxes and its postpetition
payroll taxes to the detriment of its estate and its creditors. In
addition, the Debtor's normal payroll processing operations were
disrupted to the detriment and distraction of the Debtor's few
remaining personnel.
The Debtor has subsequently received approval from the U.S. Bankruptcy
Court for payment of the $13,551.58 in prepetition payroll taxes.
Monies for the delinquent pre-petition and August 2001 payroll taxes
have been remitted to ADP and the debtor anticipates being able to
make timely payments on all future amounts owed.
--------------------------------------------------------------------------------
Schedule F - Footnotes
----------------------
a) Pre-petition claims are presented as best represented in Adaptive
Broadband's books and records. The `claimed' and `allowed' amounts of
such claims have, in most cases, not yet been determined. Some claims
included in `general unsecured claims' are stated at their potential
gross amounts owed, although the `allowed' amount of these claims
could face limitations - as stipulated by the U.S. Bankruptcy Code
b) Adaptive Broadband has not completed its analysis of claims in this
case and reserves the right to object to all claims scheduled or
otherwise listed.
c) A number of claims were scheduled with the Bankruptcy Court as
contingent, unliquidated, or disputed. For many of these items, a
value was undeterminable at the time scheduled with the Court - and is
currently undeterminable. As a result, these items are not included in
the claim totals listed in Schedule F above.
d) Adaptive Broadband has provided a value for contingent,unliquidated or
disputed claims when information was available for a reasonable
estimation. Included in estimated contingent claims as part of the
`general unsecured claims' above are the following: $2.5MM for a
potential warranty claim with Comtech Telecommunications, $2MM for a
contingent settlement agreement with Northrop Grumman, and $14.8MM
relating to Solectron Corporation.
e) `Priority claims other than taxes' represents Adaptive Broadband's
best estimate as to those employee claims eligible for priority
status. The Company is currently reviewing these amounts and will
continue to make any necessary adjustments to the allocation between
priority and non-priority status, if warranted.
f) General unsecured claims includes approximately $132K in pre-petition
taxes. Adaptive Broadband is attempting to identify which, if any,
amounts owing to taxing authorities are eligible for priority status.
g) Adaptive Broadband Corporation has rejected three real property leases
during the post-petition period. The Company is currently in the
process of estimating the potential damage claim, if any, afforded to
the landlords of these properties as may be allowed under the U.S.
Bankruptcy Code. No such estimate is included in the `general
unsecured claims' listed above.
Schedule H - Continued
----------------------
Account 5 Account 6 Account 7
--------- --------- ---------
Reliance Trust Bank of China Bank of China
-------------------------------------------------------------------------
SEDCP Account USD$ Account RMB Account
-------------------------------------------------------------------------
150209526 8093014 8093001
-------------------------------------------------------------------------
Deferred Comp Plan Operations Operations
-------------------------------------------------------------------------
$3,897,802.00 $28,330.00 $2,197.00 Sub-total this page = $3,928,329.00
------------------------------------------------------------------------- -------------
Converted to USD from RMB
NOTE 1 --> Attached with this MOR are August 31, 2001 bank statements for
------
accounts 1, 2, 3, 6 & 7.
Bank Statements for accounts 4 & 5 have been requested and will be forwarded as
soon as received.
Relating to account 5, Reliance Trust & Pencal have refused to provide an August
2001 statement due to unpaid pre-petition invoices. If necessary, legal action
will be taken against these parties in order to provide that periodic statements
are received on a timely basis.
NOTE 2 --> Adaptive Broadband Corporation is stating cash balances in Schedule H
------
above (per bank) as of 8/31/01, the date in which the bank statements for this
period will be reported. The Company is in the process of contacting its
financial institutions to request bank statement "cut-off" dates for future
periods to be consistent with the Company's fiscal month-end close dates.
ADAPTIVE BROADBAND CORPORATION
DISBURSEMENTS FOR FISCAL AUGUST `01 DRAFT-For Discussion Purposes Only
JULY 26, 2001 THROUGH AUGUST 25, 2001
TOTAL AMOUNT OF PAYMENTS OF PRE- PAYMENTS TO
PAYEE CATEGORIZATION DATE CHECK # CHECK PETITION DEBTS INSIDERS
------------------------------------------------------------------------------------------------------------------------------------
AMERICAN BUSINESS COMMUNICATIONS 53000 - Fringe Expense 08/01/01 13048 340 - -
AMB PROPERTY 56134 - Rent Expense 08/01/01 13028 159,472 - -
CASSANDRA JONES 51100 - Wages & Salaries 08/03/01 13037 1,725 692 -
DANIEL SCHARRE 51100 - Wages & Salaries 08/03/01 13041 8,863 4,341 8,863
ELIAS NADER 51100 - Wages & Salaries 08/03/01 13040 3,543 1,500 3,543
ERIC BURKE 51100 - Wages & Salaries 08/03/01 13032 1,484 692 -
FU-CHIEH CHANG 51100 - Wages & Salaries 08/03/01 13036 1,649 750 -
HONGBIN SHEN 51100 - Wages & Salaries 08/03/01 13042 3,545 1,494 -
IAN WALTERS 51100 - Wages & Salaries 08/03/01 13033 3,784 1,615 3,784
JAY APOIAN 51100 - Wages & Salaries 08/03/01 13030 1,248 415 -
JERROLD KOLLMAN 51100 - Wages & Salaries 08/03/01 13034 4,975 2,308 4,975
MARK SHUPE 51100 - Wages & Salaries 08/03/01 13043 1,875 865 -
MICHELL BESTUL 51100 - Wages & Salaries 08/03/01 13031 1,513 692 -
PATTY MIAO 51100 - Wages & Salaries 08/03/01 13045 1,483 - -
PATTY MIAO 51100 - Wages & Salaries 08/03/01 13046 296 1,080 -
PATTY MIAO 51100 - Wages & Salaries 08/03/01 13039 519 - -
PETER MALONEY 51100 - Wages & Salaries 08/03/01 13038 5,397 2,636 5,397
SUMMER CANNON 51100 - Wages & Salaries 08/03/01 13035 1,575 866 -
SIRAROTOGA BLANCARTE 52100 - Contract Labor 08/03/01 13029 2,151 600 -
TIM SARHATT 52100 - Contract Labor 08/03/01 13044 3,360 2,400 -
NORTH AMERICAN VAN LINES 56133 - Moving Expenses 08/07/01 402666290 6,845 - -
CASSANDRA JONES(PETTY CASH) 56299 - Misc. Expenses 08/07/01 13047 879 - -
CASSANDRA JONES 51100 - Wages & Salaries 08/17/01 13053 1,725 - -
DANIEL SCHARRE 51100 - Wages & Salaries 08/17/01 13058 9,413 - 9,413
ELIAS NADER 51100 - Wages & Salaries 08/17/01 13057 3,636 - 3,636
ERIC BURKE 51100 - Wages & Salaries 08/17/01 13050 1,484 - -
FU-CHIEH CHANG 51100 - Wages & Salaries 08/17/01 13052 1,649 - -
HONGBIN SHEN 51100 - Wages & Salaries 08/17/01 13059 7,015 - -
IAN WALTERS 51100 - Wages & Salaries 08/17/01 13061 3,744 - 3,744
JAY APOIAN 51100 - Wages & Salaries 08/17/01 13049 1,248 - -
MARK SHUPE 51100 - Wages & Salaries 08/17/01 13060 4,383 - -
PATTY MIAO 51100 - Wages & Salaries 08/17/01 13056 940 - -
PETER MALONEY 51100 - Wages & Salaries 08/17/01 13055 5,397 - 5,397
SUMMER CANNON 51100 - Wages & Salaries 08/17/01 13051 1,480 - -
SIRAROTOGA BLANCARTE 52100 - Contract Labor 08/17/01 13063 2,100 - -
UNUM LIFE INSURANCE 53000 - Fringe Expense 08/23/01 1025 1,647 - -
RHI CONSULTING 52100 - Contract Labor 08/24/01 1034 9,367 - -
BLUE CROSS OF CALIFORNIA 53000 - Fringe Expense 08/24/01 1037 19,534 - -
DELTA DENTAL 53000 - Fringe Expense 08/24/01 1029 2,492 - -
KEMPER INSURANCE 53000 - Fringe Expense 08/24/01 1031 2,320 - -
MANAGED HEALTH NETWORK 53000 - Fringe Expense 08/24/01 1032 37 - -
THE HARTFORD INSURANCE 53000 - Fringe Expense 08/24/01 1035 24 - -
HQ GLOBAL WORKPLACES 56132 - Rent Deposit 08/24/01 1027 22,295 - -
EQUITY OFFICE 56133 - Moving Expenses 08/24/01 1026 3,795 - -
HEWLETT-PACKARD 56133 - Moving Expenses 08/24/01 1038 7,977 - -
HOGLAND TRANSFER 56134 - Rent Expense 08/24/01 1030 2,422 - -
UNITED PARCEL SERVICE 56302 - Freight-Out Expense 08/24/01 1036 360 - -
ADP 56407 - Payroll Processing Fees 08/24/01 1028 253 - -
PACIFIC BELL 56601 - Long Distance 08/24/01 1033 90 - -
1 of 2
ADAPTIVE BROADBAND CORPORATION
DISBURSEMENTS FOR FISCAL AUGUST `01 DRAFT-For Discussion Purposes Only
JULY 26, 2001 THROUGH AUGUST 25, 2001
TOTAL AMOUNT OF PAYMENTS OF PRE- PAYMENTS TO
PAYEE CATEGORIZATION DATE CHECK # CHECK PETITION DEBTS INSIDERS
------------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------
$ 333,351 $ 22,948 $ 48,752
=============================================
2 of 2
NO. AMER. DIV. CORP. SERV.-NO #1233
P.O. BOX 27128 ACCOUNT NUMBER: 1233-9-36178
CONCORD, CA. 94520
ACCOUNT TYPE: CORP CHECKING ACCOUNT IPO
LAST STATEMENT 07/31/01
FOR STATEMENT INQUIRES
CALL 800-262-2726 THIS STATEMENT 08/31/01
PARENT ID: 88233 Account #1
0831011010-C ADAPTIVE BROADBAND CORP-DIP PAGE 1 OF 4
E 48 1143 BORREGAS AVE ENCLOSURES 48
SUNNYVALE CA 94089
________________STATEMENT CYCLE SUMMARY___________________________
08/01/01 OPENING LEDGER BALANCE 500,000.00
OPENING FLOAT 0.00
OPENING COLLECTED BALANCE 500,000.00
1 DEPOSIT(S) 8,862.55
1 WIRE TRANSFER CREDIT(S) 145,634.46
TOTAL CREDITS 154,497.01
48 CHECK(S) 348,680.66
TOTAL DEBITS 348,680.66
08/31/01 CLOSING LEDGER BALANCE 305,816.35
TOTAL FLOAT 0.00
CLOSING COLLECTED BALANCE 305,816.35
------------------------------------------------------------------
___________________DETAILED_TRANSACTIONS_BY_POST_DATE___________________________
08/01 OPENING BALANCE - LEDGER 500,000.00
- FLOAT 0.00
- COLLECTED 500,000.00
--------------------------------------------------------------------------------
POST_DATE ______CUSTOMER_REFERENCE_OR_ITEM_DESCRIPTION_____ _____AMOUNT______
08/01 CLOSING BALANCE - LEDGER 500,000.00
- FLOAT 0.00
- COLLECTED 500,000.00
--------------------------------------------------------------------------------
08/02 CLOSING BALANCE - LEDGER 500,000.00
- FLOAT 0.00
- COLLECTED 500,000.00
--------------------------------------------------------------------------------
08/03 CHECK 13031 REF# 983500660257764 1,513.16 DB
08/03 CHECK 13037 REF# 004100860281013 1,725.15 DB
08/03 CHECK 13038 REF# 982000460321357 5,396.85 DB
08/03 CLOSING BALANCE - LEDGER 491,364.84
- FLOAT 0.00
- COLLECTED 491,364.84
--------------------------------------------------------------------------------
08/06 CHECK 13028 REF# 983906060139355 159,472.00 DB
08/06 CHECK 13029 REF# 983500460076176 2,151.00 DB
08/06 CHECK 13032 REF# 980501460066211 1,484.02 DB
08/06 CHECK 13035 REF# 980501460068602 1,575.27 DB
PAGE 2 OF 4
_______________________________DETAILED_TRANSACTIONS_BY_POST_DATE_________________________________
POST_DATE______CUSTOMER__REFERENCE__OR__ITEM__DESCRIPTION___________________ ______AMOUNT______
08/06 CHECK 13039 REF# 981101460275417 518.91 DB
08/06 CHECK 13045 REF# 981101460275418 1,482.53 DB
08/06 CHECK 13046 REF# 981101460275416 296.26 DB
08/06 CLOSING BALANCE - LEDGER 324,384.85
- FLOAT 0.00
- COLLECTED 324,384.85
--------------------------------------------------------------------------------------------------
08/07 CHECK ********** REF# 004102460022653 6,845.26 DB
08/07 CHECK 13036 REF# 981401060393762 1,649.31 DB
08/07 CHECK 13043 REF# 987007560228943 1,875.12 DB
08/07 CHECK 13047 REF# 004102360081628 879.22 DB
08/07 CLOSING BALANCE - LEDGER 313,135.94
- FLOAT 0.00
- COLLECTED 313,135.94
--------------------------------------------------------------------------------------------------
08/08 CHECK 13033 REF# 988507260053260 3,743.82 DB
08/08 CHECK 13041 REF# 383300960106072 8,862.73 DB
08/08 CHECK 13042 REF# 023500660218295 3,545.15 DB
08/08 CHECK 13044 REF# 982001460236843 3,360.00 DB
08/08 CLOSING BALANCE - LEDGER 293,624.24
- FLOAT 0.00
- COLLECTED 293,624.24
--------------------------------------------------------------------------------------------------
08/09 CHECK 13034 REF# 983906060094944 4,975.47 DB
08/09 CLOSING BALANCE - LEDGER 288,648.77
- FLOAT 0.00
- COLLECTED 288,648.77
--------------------------------------------------------------------------------------------------
08/10 CLOSING BALANCE - LEDGER 288,648.77
- FLOAT 0.00
- COLLECTED 288,648.77
--------------------------------------------------------------------------------------------------
08/13 CHECK 13030 REF# 981400460277377 1,247.93 DB
08/13 CLOSING BALANCE - LEDGER 287,400.84
- FLOAT 0.00
- COLLECTED 287,400.84
--------------------------------------------------------------------------------------------------
08/14 CLOSING BALANCE - LEDGER 287,400.84
- FLOAT 0.00
- COLLECTED 287,400.84
--------------------------------------------------------------------------------------------------
PAGE 3 OF 4
_________________________ DETAILED_TRANSACTIONS_BY_POST_DATE___________________
POST_DATE_____CUSTOMER_REFERENCE_OR_ITEM_DESCRIPTION_______ ______AMOUNT_____
08/15 CLOSING BALANCE - LEDGER 287,400.84
- FLOAT 0.00
- COLLECTED 287,400.84
--------------------------------------------------------------------------------
08/16 CLOSING BALANCE - LEDGER 287,400.84
- FLOAT 0.00
- COLLECTED 287,400.84
--------------------------------------------------------------------------------
08/17 CHECK 13053 REF# 004102460003671 1,725.15 DB
08/17 CLOSING BALANCE - LEDGER 285,675.69
- FLOAT 0.00
- COLLECTED 285,675.69
--------------------------------------------------------------------------------
08/20 DEPOSIT ********* REF# 004100160339249 8,862.55 CR
0 DAY FLOAT 0.55
2 DAY FLOAT 8,331.00
3 DAY FLOAT 531.00
08/20 CHECK 13050 REF# 980500660058729 1,484.02 DB
08/20 CHECK 13051 REF# 980500660053466 1,479.80 DB
08/20 CHECK 13063 REF# 983501360131641 2,100.00 DB
08/20 CLOSING BALANCE - LEDGER 289,474.42
- FLOAT 8,862.00
- COLLECTED 280,612.42
--------------------------------------------------------------------------------
08/21 CHECK 13502 REF# 981400960256266 1,649.31 DB
08/21 CHECK 13054 REF# 983906260233125 5,310.25 DB
08/21 CHECK 13060 REF# 987006360025806 4,382.88 DB
08/21 CHECK 13061 REF# 988507160144821 3,743.82 DB
08/21 CLOSING BALANCE - LEDGER 247,388.16
- FLOAT 8,862.00
- COLLECTED 265,526.16
--------------------------------------------------------------------------------
08/22 CLOSING BALANCE - LEDGER 274,388.16
- FLOAT 531.00
- COLLECTED 273,857.16
--------------------------------------------------------------------------------
08/23 CHECK 13055 REF# 988506860036979 5,396.85 DB
08/23 CHECK 13059 REF# 023500460012571 7,015.40 DB
08/23 CLOSING BALANCE - LEDGER 261,975.91
- FLOAT 0.00
- COLLECTED 261,975.91
--------------------------------------------------------------------------------
08/24 CHECK 13040 REF# 615000160045480 3,543.44 DB
08/24 CHECK 13057 REF# 615000160045479 3,636.49 DB
08/24 CHECK 13058 REF# 383300560143959 9,412.73 DB
PAGE 4 OF 4
_______________________DETAILED_TRANSACTIONS_BY_POST_DATE_______________________
POST_DATE _____CUSTOMER_REFERENCE_OR_ITEM_DESCRIPTION______ ______AMOUNT_____
08/24 CLOSING BALANCE - LEDGER 245,383.25
- FLOAT 0.00
- COLLECTED 245,383.25
--------------------------------------------------------------------------------
08/27 CHECK 1031 REF# 987006460232986 2,320.00 DB
08/27 CHECK 1032 REF# 519000160078222 36.92 DB
08/27 CHECK 1033 REF# 312800260484450 90.37 DB
08/27 CHECK 1034 REF# 519000160194711 9,366.72 DB
08/27 CHECK 1037 REF# 519000160087008 19,534.40 DB
08/27 CHECK 13049 REF# 981400260340552 1,247.93 DB
08/27 CLOSING BALANCE - LEDGER 212,786.91
- FLOAT 0.00
- COLLECTED 212,786.91
--------------------------------------------------------------------------------
08/28 CLOSING BALANCE - LEDGER 212,786.91
- FLOAT 0.00
- COLLECTED 212,786.91
--------------------------------------------------------------------------------
08/29 CHECK 1025 REF# 988506760067640 1,647.38 DB
08/29 CHECK 1028 REF# 983500860047595 253.09 DB
08/29 CLOSING BALANCE - LEDGER 210,886.44
- FLOAT 0.00
- COLLECTED 210,886.44
--------------------------------------------------------------------------------
08/30 WIRE TRANSFER CREDIT REF# 385290370044772 145,634.46
MONEY TRANSFER-CALIF TRN: 010830-044772 SENDER
REF: 010830038854 SRC: AMX RETAIL BENF: ADAPTIVE
BROADBAND CORP-DIP ORIG: /000412728894
08/30 CHECK 1027 REF# 983906360149184 22,295.00 DB
08/30 CHECK 1030 REF# 983500260160848 2,422.08 DB
08/30 CHECK 1036 REF# 983500960139066 360.39 DB
08/30 CLOSING BALANCE - LEDGER 331,443.43
- FLOAT 0.00
- COLLECTED 331,443.43
--------------------------------------------------------------------------------
08/31 CHECK 1029 REF# 982000460118810 2,491,97 DB
08/31 CHECK 1046 REF# 004101260231299 1,725,15 DB
08/31 CHECK 1052 REF# 015501360136021 5,207.71 DB
08/31 CHECK 1063 REF# 004100460238343 16,202.25 DB
08/31 CLOSING BALANCE - LEDGER 305,816.35
- FLOAT 0.00
- COLLECTED 305,816.35
--------------------------------------------------------------------------------
Bank of America [LOGO] Account #2
Your Nations Funds
FundSweep Statement
Mutual Fund Services #9011
P. O. Box 37032
San Francisco, CA 94137-9011 Statement Date: August 31, 2001
Account Number:021100004251237
Tax ID Number: 94-1668412
Dealer Number: 06100
ADAPTIVE BROADBAND CORPORATION Branch Number: B5507
ATTN DIRECTOR OF TREASURY Representative: BONZON
1143 BORREGAS AVE
SUNNYVALE CA 94089-1306 At Your Service
Call: 1-800-545-0232
Write: Bank of America,
P. O. Box 37032, Unit #9011
San Francisco, CA 94137-9011
================================================================================
[_] Summary of Your Account [_] Summary of Distributions
------------------------------------------ -----------------------------------
Shares Now Owned Value Dividend Payments Year-to-Date
------------------------------------------ Taxablbe 25,909.08
Certificate shares held by you 0.000 Non-taxable 0.00
------------------------------------------ Tax withheld 0.00
Unissued shares held by you 973,604.040 Long term capital gains 0.00
========================================== Short term capital gains 0.00
Share Total 973,604.040 Total 25,909.08
========================================== ===================================
[_] Markert Value and Monthly Yield [_] Distribution Options
------------------------------------------ -----------------------------------
Period End Market Value 973,604.040 Income dividends Reinvest
------------------------------------------ -----------------------------------
For the period ending 08/31/2001, the 7 Capital gains Cash
day and 30 yields were 3.080% and 3.132%, -----------------------------------
respectively.
================================================================================
[_] NATIONS CASH RESERVES DAILY CLASS
-----------------------------------------------------------------------------------------------------------------------
Date Description Quantity Price Market Value Total Shares
Your Beginning Shares 1,179,854,850
08/01 Part'l REDEMPTION 258,712.020 $1.00 $ 258,712.02 921,142.830
08/02 SUBSEQUENT INVESTMENT 3,100.000 1.00 3,100.00 924,242.830
08/03 SUBSEQUENT INVESTMENT 14,540.000 1.00 14,540.00 938,782.830
08/06 SUBSEQUENT INVESTMENT 915.000 1.00 915.00 939,697.830
08/09 SUBSEQUENT INVESTMENT 274.930 1.00 274.93 939,972.760
08/13 SUBSEQUENT INVESTMENT 1,998.000 1.00 1,998.00 941,970.760
08/14 SUBSEQUENT INVESTMENT 127.000 1.00 127.00 942,097.760
08/21 Part'l REDEMPTION 87,952.150 1.00 87,952.15 854,145.610
08/23 SUBSEQUENT INVESTMENT 87,952.150 1.00 87,952.15 942,097.760
08/27 Part'l REDEMPTION 3,639.850 1.00 3,639.85 938,457.910
08/28 SUBSEQUENT INVESTMENT 32,640.000 1.00 32,640.00 971,097.910
08/31 DIVIDEND REINVESTED 2,506.130 $1.00 $ 2,506.13 973,604.040
Total Shares 973,604.040
Page 1 of 2
Bank of America [lOGO]
ADAPTIVE BROADBAND CORPORATION Statement Date: August 31, 2001
Account Number: 021100004251237
================================================================================
[_] Important Information
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Investments in Nations Funds are NOT bank deposits, and are NOT
obligations of, or guaranteed by Bank of America or any affiliates.
An investment in mutual funds involves investment risks, including
the possible loss of the principal amount invested. Nations Funds NOT
are sponsored and distributed by Stephens, Inc., which is FDIC
unaffiliated with Bank of America. Insured
--------------------------------------------------------------------------------
Page 2 of 2
Union- Account #3
Bank of
California
SANTA CLARA VALLEY COMM'L BANKING 645
POST OFFICE BOX 24512
OAKLAND, CA 94623
IMPORTANT ACCOUNT NOTICE
ADAPTIVE BROADBAND CORPORATION
1143 BORREGAS AVE AUGUST 24, 2001
SUNNYVALE CA 94089 ACCOUNT NUMBER: 6459018088
--------------------------------------------------------------------------------
UNION BANK OF CALIFORNIA FIXED TIME DEPOSIT MATURITY NOTICE
--------------------------------------------------------------------------------
------------------ -------------------------------- ---------- ----------------
MATURITY DATE INTEREST ANNUAL PERCENTAGE TERM CURRENT BALANCE
RATE YIELD
SEPTEMBER 10, 2001 3.35% 3.40% 33 DAYS $2,221,406.26
------------------ -------------------------------- ---------- ----------------
YOUR FIXED MATURITY TIME DEPOSIT DESCRIBED ABOVE WILL MATURE ON SEPTEMBER 10,
2001 WE REMIND YOU THAT YOUR DEPOSIT WILL STOP EARNING INTEREST ON ITS
MATURITY DATE.
WE WOULD LIKE TO HELP YOU REINVEST YOUR DEPOSIT.
UNION BANK OF CALIFORNIA MAKES AVAILABLE A WIDE VARIETY OF INVESTMENT OPTIONS
TO CHOOSE FROM: SAVINGS, TIME DEPOSITS AND SECURITIES, SUCH AS STOCKS, BONDS
AND MUTUAL FUNDS. (SECURITIES ARE NOT BANK DEPOSITS AND ARE NOT COVERED BY
FDIC INSURANCE.) PLEASE CALL YOUR BANKING OFFICE AT 800-898-6466 FOR MORE
INFORMATION.
THANK YOU FOR BANKING WITH UNION BANK OF CALIFORNIA.
(STATEMENT LIST)
BANK OF CHINA
HEAD OFFICE
BEIJING (ACCOUNT NAME):ADAPTIVE BROADBAND CORPORATION BEIJING REPRESENTATIVE OFFICE
-----------------------------------------------------------------------------------------------------
(NEW ACCOUNT NO): 00200008093014 (OLD ACCOUNT NO): 81201400021594 :010090
(CURRENCY):USD (LAST BALANCE): 48,596.02
-------------------------------------------------------------------------------------------------------
(DATE) (PARTICULARS (VAL) (VCH NO) (DEBIT/CREDIT)
-------------------------------------------------------------------------------------------------------
20010801 0000592653_TO_A/C 20010801 1109003601 5,000.00-
20010809 0000592654_TO_A/C 20010809 1109000801 5,000.00-
20010829 0000592655_FOREIGN_ 20010829 1804001311 10,266.00-
-------------------------------------------------------------------------------------------------------
: 010903 (BALANCE): 28,330.02
-----------------------------------------------------------------------------------------------------
(STATEMENT LIST)
BANK OF CHINA
(ACCOUNT NAME): ADAPTIVE BROADBAND CORPORATION BEIJING REPRESENTATIVE OFFICE
--------------------------------------------------------------------------------
(NEW ACCOUNT NO): 00200008093001 (OLD ACCOUNT NO): 81200100017837 :0100901
(CURRENCY): CNY (LAST BALANCE): 47,170.07
--------------------------------------------------------------------------------
(DATE) (PARTICULARS) (VAL) (VCH NO) (DEBIT/CREDIT)
--------------------------------------------------------------------------------
20010801 0000129512_TO_A/C 20010801 1106001411 21,075.50
20010801 0000129513_TAX 20010801 1109003403 14,434.42
20010801 PHONE 20010801 1119002117 490.98
20010801 PHONE 20010801 1119000402 264.05
20010801 PHONE 20010801 1119000218 237.80
20010801 FROM_A/C 20010801 1109003604 41,323.00
20010802 0000129511_TO_A/C 20010802 1106000715 12,800.00
20010802 PHONE 20010802 1119004709 1,456.08
20010802 PHONE 20010802 1119003117 961.66
20010802 PHONE 20010802 1119004404 882.66
20010807 0000129515_TO_A/C 20010807 1109002501 3,008.60
20010808 0000129517_TO_A/C 20010808 1106001611 4,469.58
20010808 0000129514_TO_A/C 20010808 1106001614 2,231.46
20010809 0000129516_TO_A/C 20010809 1106000713 6,293.08
20010809 04 20010809 1106001314 429.00
20010809 FROM_A/C 20010809 1109000804 41,324.50
20010810 0000129510_TO_A/C 20010810 1106002012 3,330.60
20010813 0000129519_TO_A/C 20010813 1106000704 5,760.13
20010814 0000129518_TO_A/C 20010814 1106000103 14,568.14
20010815 04 20010815 1106001202 46.00
--------------------------------------------------------------------------------
:010903 (BALANCE): 37,077.83
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
(STATEMENT LIST)
BANK OF CHINA
(ACCOUNT NAME): ADAPTIVE BROADBAND CORPORATION BEIJING REPRESENTATIVE OFFICE
--------------------------------------------------------------------------------
(NEW ACCOUNT NO): 00200008093001 (OLD ACCOUNT NO): 81200100017837 :1
(CURRENCY): CNY (LAST BALANCE): 37,077.83
--------------------------------------------------------------------------------
(DATE) (PARTICULARS) (VAL) (VCH NO) (DEBIT/CREDIT)
--------------------------------------------------------------------------------
20010823 TELEX 20010823 1109001505 84.66
20010829 0000129520_CASH 20010829 1805000703 9,718.02
20010829 0000129524_CASH 20010829 1805000701 4,652.06
20010829 0000129523_CASH 20010829 1804001307 3,025.00
20010829 0000129521_CASH 20010829 1804001309 1,229.00
20010829 0000129525_CASH 20010829 1804001305 1,150.00
20010829 CASH 20010829 1108001802 14,434.42
20010831 0000129526_TO_A/C 20010831 1106000916 13,471.50
--------------------------------------------------------------------------------
:010903 (BALANCE): 18,182.01
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Adaptive Broadband Corporation
Tax Statement
July 26, 2001 to August 25, 2001
Amount Remitted To Date Remitted To
Amount Taxing Authority Taxing Authority
--------------------------- --------------------------- ----------------------------
Gross Payroll & Payroll Taxes [A]
---------------------------------
Gross Payroll 124,583 N/A N/A
Federal Taxes Withheld 31,730 - Not Remitted as of 08/25/01
State Taxes Withheld 6,846 - Not Remitted as of 08/25/01
Employer Taxes 4,647 - Not Remitted as of 08/25/01
Gross Sales
-----------
Gross Sales [B] 171,285 N/A N/A
Notes:
-----
[A] A portion of gross payroll and payroll taxes relate to court approved pre -
petition amounts.
[B] As a result of reseller agreements and international sales, no sales tax is
related to gross sales.
1 of 1