EX-99.2 3 v085386_ex99-2.htm Unassociated Document
Exh 99.2
 
Law Offices of David C. McGrail
676A Ninth Avenue #211
New York, NY 10036
Tel: (646) 290-6496
Fax: (646) 224-8377
David C. McGrail (DM 3904)
Counsel To PubliCARD, Inc.
 
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
    
 
:
Chapter 11
In re: PUBLICARD, INC.,
:
Case No. 07-11517 (RDD)
Debtor
:
 
 
:
 
 
:
 
 
:
 
 
:
 
 
:
 
 

MONTHLY CONSOLIDATED STATEMENT
FOR THE PERIOD ENDED
July 31, 2007
 
MONTHLY RECEIPTS:
  
$
228
  
         
MONTHLY DISBURSEMENTS:
  
$
24,847
  
 
THIS OPERATING STATEMENT MUST BE SIGNED BY A REPRESENTATIVE OF THE DEBTOR
 
The undersigned, having reviewed the attached report and being familiar with the debtor's financial affairs, verifies under penalty of perjury, that the information contained therein is complete, accurate and truthful to the best of my knowledge.
 
     
   
 
 		  
 		  
 
Date: 16-Aug-07 By:   /s/ Marc B. Ross
 
  Title: Principal Financial Officer
 
 
Indicate if this is an amended statement by checking here x
 
 
PubliCARD, Inc.
                  
(Debtor-In-Possession)
                  
Statement Of Operations
                  
For Period Ending July 31, 2007
                  
Accrual Basis
                 
 
                          
 
                
Current Month
    
Case-To-Date
  
 
                
July 31, 2007
    
July 31, 2007
  
                           
Revenue
              
$
-
  
$
-
  
                           
                           
Operating Expenses
                  
Direct Cost Of Revenue
               
-
   
-
 
Selling, General and Administrative
                
46,373
   
94,219
 
Depreciation Of Fixed Assets
                
96
   
288
 
Total Operating Expenses
        
46,469
   
94,507
 
                           
Operating Gain/(Loss)
        
(46,469
)
  
(94,507
)
                           
Other Expense/(Income)
                  
Interest Expense
                
-
   
-
 
Loss/(Gain) On The Sale Of Assets
                
-
   
-
 
US Trustee Fees - Q2 2007
                
250
   
250
 
Interest Income
                
(228
)
  
(409
)
                       
Income/(Loss) Before Reorganizational Items and Taxes
        
(46,491
)
  
(94,348
)
                           
Reorganization Professional Fees (Estimated and Accrued)         (1)
  
 
 
  
6,000
   
14,000
 
                           
Gain/(Loss) Before Income Taxes
        
(52,491
)
  
(108,348
)
                           
Provision For Income Taxes
        
-
   
-
 
                           
Net Income/(Loss)
        
(52,491
)
  
(108,348
)
                           
Deficit Beginning of Period
        
(113,669,187
)
  
(113,613,330
)
                              
Deficit End Of Period
     
$
(113,721,678
)
$
(113,721,678
)
 
                 -    
-
 
(1) Includes estimated and accrued fees for debtor professionals.
      
 
2
 
                   
(Debtor-In-Possession)
                    
Balance Sheet
                    
As of July 31, 2007
                    
                     
 
    
July 31, 2007
    
June 30, 2007
    
May 17, 2007
  
 
    
Balance Sheet
    
Balance Sheet
    
Balance Sheet
  
Current Assets
                    
Cash
  
$
75,055
  
$
99,674
  
$
39,723
  
Restricted Cash
    
-
   
-
   
-
 
Due From Related Parties
    
-
   
-
   
-
 
Accounts Receivable-Net
    
(268
)
  
(268
)
  
13,364
 
Inventory Net
    
-
   
-
   
-
 
Prepaid Rent
    
-
   
-
   
-
 
Prepaid Insurance
    
27,739
   
32,520
   
43,272
 
Prepaid Professional
    
-
   
-
   
-
 
Prepaid Expenses
    
19,200
   
19,200
   
19,200
 
Total Current Assets
    
121,726
   
151,126
   
115,559
 
                     
Property, Plant, & Equipment - Gross
    
14,404
   
14,404
   
14,404
 
Accumulated Depreciation
    
(10,374
)
  
(10,279
)
  
(10,088
)
Property, Plant, & Equipment - Net
    
4,030
   
4,125
   
4,316
 
Intangibles - Gross
    
-
   
-
   
-
 
Accumulated Amortization
    
-
   
-
   
-
 
                     
Intangibles - Net
    
-
   
-
   
-
 
Organizational Costs
    
-
   
-
   
-
 
Other - Non-Current
    
-
   
-
   
-
 
                     
Total Assets
  
$
125,756
  
$
155,251
  
$
119,875
  
                     
Post-Petition Liabilities
                    
Cash Overdrafts
  
$
-
  
$
-
  
$
-
  
Accounts Payable
    
2,090
   
8,300
   
-
 
Deferred Subscription Revenues
    
-
   
-
   
-
 
Accrued Payroll/Commission
    
1,694
   
3,018
   
-
 
Due to Affiliates
    
71,915
   
71,915
   
-
 
Other Current Liabilities/Accrued Professional Fees (Estimated)
    
14,000
   
8,000
   
-
 
Total Post Petition Current Liabilities
    
89,699
   
91,233
   
-
 
                     
Pre-Petition Liabilities
                    
Cash Overdrafts
    
-
   
-
   
-
 
Accounts Payable
    
294,021
   
269,491
   
269,491
 
Deferred Revenues
    
-
   
-
   
-
 
Accrued Payroll/Commission
    
-
   
-
   
-
 
Obligations For Capital Leases Current
    
-
   
-
   
-
 
Other Current Liabilities
    
19,800
   
19,800
   
19,800
 
Total Pre- Petition Current Liabilities
    
313,821
   
289,291
   
289,291
 
                     
Interest Payable
    
-
   
-
   
-
 
Other Long Term Liabilities
    
-
   
-
   
-
 
 
     -    
-
   
-
 
                     
Total Liabilities
  
$
403,520
  
$
380,524
  
$
289,291
  
                     
Stockholders Deficit
                    
Class A Preferred Stock Second Series, no par value:1,000 shares authorized
  
$
2,325,000
    
2,325,000
 
$
2,325,000
  
465 shares issued and outstanding
                   
Common shares, $0.10 par value: 40,000,000 shares authorized; 24,940,902
 
$
2,494,090
    
2,494,090
   
2,494,090
 
shares outstanding
                    
Additional paid-in capital
  
$
108,624,824
    
108,624,824
 
$
108,624,824
  
Accumulated deficit
  
$
(113,721,678
)
  
(113,669,187
)
$
(113,613,330
)
Total Stockholders Deficit
  
$
(277,764
)
$
(225,273
)
$
(169,416
)
                     
Total Liabilities and Stockholder Equity
  
$
125,756
  
$
155,251
  
$
119,875
  
 
3

PubliCARD, Inc.
          
(Debtor-In-Possession)
          
Statement Of Cash Flow
              
For Period Ending July 31, 2007
              
               
 
    
Current Month
    
Case-To-Date
  
 
    
July 31, 2007
    
July 31, 2007
  
Net Income/(Loss)
  
$
(52,491
)
$
(108,348
)
(Less)/Add: Depreciation
    
96
   
288
 
(Less)/Add: Amortization
              
               
(Increase)/Decrease In Net Assets
              
Net Accounts Receivable
    
-
   
13,632
 
Net Inventory
    
-
   
-
 
Prepaid Rent
              
Prepaid & Other Expenses
    
4,780
   
15,531
 
               
Increase/(Decrease) In Liabilities
              
Bank Overdrafts
    
-
   
-
 
Accounts Payable
    
18,320
   
26,620
 
Deferred Revenues
   
-
   
-
 
Accrue Payroll/Commission
    
(1,324
)
  
1,694
 
Other Current Liabilities
    
6,000
   
14,000
 
Collection of insurance proceeds Due to Inactive Affiliates
    
-
   
71,915
 
Cash Provided by/(used in) operations
    
(24,619
)
  
35,332
 
               
Capital Expenditures
    
-
   
-
 
Cash provided by/(used in) investing activities
    
-
   
-
 
               
Proceeds/(Repayments of) Debt
    
-
   
-
 
Cash provided by (used in) financing activities
    
-
   
-
 
               
Change in cash
    
(24,619
)
  
35,332
 
Cash Balance at the Beginning Of Period
    
99,674
   
39,723
 
Cash Balance at the End of the Period
  
$
75,055
  
$
75,055
  
 
4

PubliCARD, Inc.
      
(Debtor-In-Possession)
        
Statement Of Receipts And Disbursements
        
For Period Ending July 31, 2007
        
 
    
Month Ended
  
Disbursements
    
July 31, 2007
  
Checks Cut From Operating Account
  
$
14,210
  
Wires From Operating Account
    
-
 
Payments To Professionals
    
-
 
Voided Checks
    
-
 
Benefits
    
-
 
Payroll and Associated Taxes
    
10,468
 
Bank and Payroll fees
    
169
 
Taxes
    
-
 
Wires From Depository Account
    
-
 
Disbursements From Depository Account
    
-
 
Principal Repaments
    
-
 
Total Disbursements
  
$
24,847
  
         
Receipts
        
Interest Income
  
$
228
  
A/R Receipts
    
-
 
Insurance Settlements
    
-
 
Total Receipts
  
$
228
  
         
Net Inflow/(Outflow)
  
$
(24,619
)
 
5

PubliCARD, Inc.
      
(Debtor-In-Possession)
      
Disbursement List
      
For Period Ending July 31, 2007
        
 
    
Month Ended
  
Disbursements
    
July 31, 2007
  
Dow Jones
  
$
6,142
  
Triax
    
3,472
 
Iron Mountain
    
1,574
 
Sarachek
    
7,500
 
Spitzer
    
1,694
 
Spitzer - Expense Reimbursement
    
289
 
U.S. Department of Justice
    
250
 
DE Secretary of State
    
328
 
Vintage Filing Service
    
314
 
Continental Stock Transfer
    
505
 
Chubb Insurance
    
1,314
 
Federal Express
    
22
 
Payroll Taxes
    
1,274
 
ADP
    
169
 
Total
  
$
24,847
  
 
6

                   
Bank Reconciliation
            
                     
 
                  
Account
  
Bank Balance
  
Book Balance
   Variance  
2030000846371
  
$
75,055
  
$
75,055
  
$
-
  
                     
Checks Outstanding
                    
Number
    
Payee
    
Amount
        
                     
Total
        
$
-
        
                     
Deposits In Transit
                    
                     
                     
                     
                     
Net Adjustments
        
$
-
        
                     
 
7

PubliCARD, Inc.
                          
(Debtor-In-Possession)
                          
Variance To Budget
                          
For Period Ending July 31, 2007
                          
Accrual Basis
                         
                           
 
          
Actual 
    
Projected
    
Variance
  
 
          
July 31, 2007
    
July 31, 2007
    
July 31, 2007
  
                           
Revenue
        
$
-
  
$
-
  
$
-
  
                           
                           
Operating Expenses
                          
Wages and Payroll Taxes
          
12,112
   
12,258
   
146
 
Rent
          
3,472
   
3,750
   
278
 
Insurance Expense
          
4,781
   
7,965
   
3,184
 
Office Expenses
          
1,908
   
4,000
   
2,092
 
Pre-petition claims
(2)  
 
 
  
24,350
   
-
   
(24,350
)
Other Expenses
(3)  
 
 
  
-
   
4,000
   
4,000
 
Depreciation Of Fixed Assets
          
96
   
96
   
(0
)
Total Operating Expenses
          
46,719
   
32,069
   
(14,650
)
                           
Operating Gain/(Loss)
          
(46,719
)
  
(32,069
)
  
14,650
 
                           
Other Expense/(Income)
                          
Interest Expense
          
-
   
-
   
-
 
Loss/(Gain) On The Sale Of Assets
          
-
   
-
   
-
 
Claim Settlement
          
-
   
-
   
-
 
Insurance Settlements
          
-
   
-
   
-
 
Interest Income
          
(228
)
  
-
   
228
 
                           
Gain/(Loss) Before Reorganizational Items and Taxes
          
(46,491
)
  
(32,069
)
  
14,422
 
                           
Reorganization Professional Fees (Estimated and Accrued)
          
6,000
   
6,000
   
-
 
                           
Gain/(Loss) Before Income Taxes
          
(52,491
)
  
(38,069
)
  
(14,422
)
                           
Provision For Income Taxes
          
-
   
-
   
-
 
                           
Net Income/(Loss)
        
$
(52,491
)
$
(38,069
)
$
(14,422
)
                           
(1) Adjustments to pre-petition claims based upon claims filed.
                 
 
8

       
(Debtor-In-Possession)
        
Budget
        
For Period Ending July 31, 2007
        
Accrual Basis
       
         
 
    
Projected
  
 
    
August 31, 2007 
  
         
Revenue
  
$
-
  
         
         
Operating Expenses
        
Wages and Payroll Taxes
    
11,800
 
Rent
    
4,000
 
Insurance Expense
    
7,600
 
Office Expenses
    
4,000
 
Other Expenses
    
4,000
 
Depreciation Of Fixed Assets
    
96
 
Total Operating Expenses
    
31,496
 
         
Operating Gain/(Loss)
    
(31,496
)
         
Other Expense/(Income)
        
Interest Expense
    
-
 
Loss/(Gain) On The Sale Of Assets
    
-
 
Claim Settlement
    
-
 
Insurance Settlements
    
-
 
Interest Income
    
-
 
         
Income/(Loss) Before Reorganizational Items and Taxes
    
(31,496
)
         
Reorganization Professional Fees (Estimated)
    
6,000
 
         
Income/(Loss) Before Income Taxes
    
(37,496
)
         
Provision For Income Taxes
    
-
 
         
Net Income/(Loss)
  
$
(37,496
)
 
9

PubliCARD, Inc.
(Debtor-In-Possession)
Debtor Questionnaire
For Period Ending July 31, 2007
 
 
 
  
Yes
No
1. Have any assets been sold or transferred outside the normal course of business during this reporting period? If yes, provide an explanation below.
 
  
X
2. Have any funds been disbursed from any account other than a debtor-in- possession account this reporting period? If yes, provide an explanation below.
 
  
X
3. Have all post-petition tax returns been timely filed? If no, provide an explanation below.
 
X
  
4 .Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below.
 
X
  
 
10