ECO2 PLASTICS INC - FORM 8-K - EX-99.1 - MONTHLY OPERATING REPORT DATED APRIL 30, 2010

Attached files

file	filename
8-K - CURRENT REPORT - ECO2 PLASTICS INC	form8-k.htm
EX-99.2 - MONTHLY OPERATING REPORT DATED MAY 31, 2010 - ECO2 PLASTICS INC	exhibit99-2.htm

UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA

In re: [CASE NAME]		ECO2 Plastics Inc.					Case No.				09-33702 DM
		A Delaware Corporation
							CHAPTER 11
							MONTHLY OPERATING REPORT
							(GENERAL BUSINESS CASE)
SUMMARY OF FINANCIAL STATUS
		MONTH ENDED:	Apr-10				PETITION DATE:				11/24/09
	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 Month				End of Prior Month			As of Petition Filing
		a. Current Assets					$	422,278			$	525,986
		b. Total Assets					$	1,632,478			$	1,736,586		$	1,719,576
		c. Current Liabilities					$	736,381			$	673,047
		d. Total Liabilities					$	16,026,151			$	15,962,818		$	15,327,270		As Amended
	3.	Statement of Cash Receipts & Disbursements for Month					Current Month				Prior Month			Cumulative (Case to Date)
		a. Total Receipts					$	44			$	155,982		$	905,913
		b. Total Disbursements					$	103,752			$	158,671		$	754,278
		c. Excess (Deficiency) of Receipts Over Disbursements (a - b)					$	(103,708	)		$	(2,689	)	$	151,635
		d. Cash Balance Beginning of Month					$	261,022			$	263,711		$	5,678
		e. Cash Balance End of Month (c + d)					$	157,314			$	261,022		$	157,314
							Current Month				Prior Month			Cumulative (Case to Date)
	4.	Profit/(Loss) from the Statement of Operations					$	(167,441	)		$	(181,785	)	$	(777,117	)
	5.	Account Receivables (Pre and Post Petition)					$	21,800			$	21,800
	6.	Post-Petition Liabilities					$	736,381			$	673,047
	7.	Past Due Post-Petition Account Payables (over 30 days)					$	0			$	0
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)
	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?
	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? (market value)										x
	13.	Are a plan and disclosure statement on file?										x
	14.	Was there any post-petition borrowing during this reporting period?													x
	15.	Check if paid: Post-petition taxes			X	; U.S. Trustee Quarterly Fees				X	; 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:
							Responsible Individual

STATEMENT OF OPERATIONS (General Business Case)
										For the Month Ended	04/30/10
Current Month
Actual			Forecast			Variance						Cumulative (Case to Date)			Next Month Forecast
										Revenues:
						$	0		1	Gross Sales		$	0
$	0					$	0		2	less: Sales Returns & Allowances		$	0
$	0		$	0		$	0		3	Net Sales		$	0		$	0
$	0					$	0		4	less: Cost of Goods Sold (Schedule 'B')		$	0
$	0		$	0		$	0		5	Gross Profit		$	0		$	0
						$	0		6	Interest		$	0
						$	0		7	Other Income:
						$	0		8
						$	0		9
$	0		$	0		$	0		10	Total Revenues		$	0		$	0
										Expenses:
$	27,923		$	27,923		$	(0	)	11	Compensation to Owner(s)/Officer(s)		$	149,769		$	26,654
$	23,142		$	23,142		$	(0	)	12	Salaries		$	175,719		$	22,090
$	781		$	800		$	19		13	Payroll Processing Fee		$	4,058		$	800
						$	0		14
			$	1,500		$	1,500		15	Rent/Lease: Personal Property		$	7,807
$	8,000		$	8,000		$	0		16	Real Property		$	76,784		$	8,000
$	22,350		$	13,000		$	(9,350	)	17	Insurance		$	68,801		$	13,000
						$	0		18	Management Fees
						$	0		19	Depreciation
$	3,107		$	3,983		$	876		20	Taxes: Employer Payroll Taxes		$	21,536		$	2,730
						$	0		21	Real Property Taxes
						$	0		22	Other Taxes
			$	4,390		$	4,390		23	Moving Expense		$	8,610
						$	0		24	Other Administrative (Cafeteria)		$	1,337
$	4,760		$	4,760		$	0		25	Interest		$	19,040		$	4,760
$	1,082		$	2,000		$	918		26	Other Expenses:	General	$	10,271		$	2,000
$	1,312		$	1,500		$	188		27	Utilities		$	7,497		$	1,500
$	755		$	765		$	10		28	Telephone		$	3,786		$	765
						$	0		29	Cool Clean Settlement
$	2,500		$	2,500		$	0		30	Employee Expenses		$	13,500		$	2,500
$	132		$	1,000		$	868		31	Fees for Initial SEC 8k Filing		$	1,793		$	1,000
$	1,368		$	3,500		$	2,132		32	Patent Expenses		$	20,690		$	2,000
$	430		$	1,000		$	570		33	Transfer Agent Stock Listing charges		$	1,685		$	1,000
						$	0		34	Prepetition Employee Expenses
$	97,643		$	99,763		$	2,120		35	Total Expenses		$	592,684		$	88,799
$	(97,643	)	$	(99,763	)	$	2,120		36	Subtotal		$	(592,684	)	$	(88,799	)
$	(64,967	)	$	(50,000	)	$	14,967		37	Reorganization Items: Professional Fees		$	(364,288	)	$	(50,000	)
						$	0		38	Provisions for Rejected Executory Contracts		$	0
$	44					$	44		39	Interest Earned on Accumulated Cash from		$	78
										Resulting Chp 11 Case			0
						$	0		40	Gain or (Loss) from Sale of Equipment		$	186,451
$	(4,875	)	$	(4,875	)	$	0		41	U.S. Trustee Quarterly Fees		$	(5,850	)
						$	0		42
$	(69,798	)	$	(54,875	)	$	(14,923	)	43	Total Reorganization Items		$	(183,609	)	$	(50,000	)
$	(167,441	)	$	(154,638	)	$	(12,803	)	44	Net Profit (Loss) Before Federal & State Taxes		$	(776,293	)	$	(138,799	)
						$	0		45	Federal & State Income Taxes		$	824
$	(167,441	)	$	(154,638	)	$	(12,803	)	46	Net Profit (Loss)		$	(777,117	)	$	(138,799	)

Attach an Explanation of Variance to Statement of Operations (For variances greater than +/- 10% only):

Exhibit A - Statement of Operations - Explanation of Variances +/- 10%

Line 15. Lease on equipment is to be rejected so no expenses incurred in April

Line 17. Insurance renewal required down payments of 25% which is offset by the favorable variance in March

Line 23. Expenses postponed until June

Line 31. Expenses postponed until next month

Line 32. Expenses postponed until next month

Line 33. Expenses postponed until next month

Line 37. Higher than anticipated legal expenses

BALANCE SHEET
(General Business Case)
For the Month Ended					04/30/10
		Assets
					From Schedules		Market Value
		Current Assets
	1		Cash and cash equivalents - unrestricted				$	157,314
	2		Cash and cash equivalents - restricted
	3		Accounts receivable (net)			A	$	21,800
	4		Inventory			B	$	0
	5		Prepaid expenses
	6		Professional retainers				$	143,164
	7		Other:	Honeywell License			$	100,000
	8
	9			Total Current Assets			$	422,278
		Property and Equipment (Market Value)
	10		Real property			C	$	0
	11		Machinery and equipment			D	$	1,190,000
	12		Furniture and fixtures			D
	13		Office equipment			D	$	10,000
	14		Leasehold improvements			D	$	0
	15		Vehicles			D	$	0
	16		Other:			D
	17					D
	18					D
	19					D
	20					D
	21			Total Property and Equipment			$	1,200,000
		Other Assets
	22		Loans to shareholders
	23		Loans to affiliates
	24		Security Deposit to Norris Industry (Landlord)				$	0
	25		Utility Deposit to NI
	26		Disposal Costs Deposit				$	10,200
	27
	28			Total Other Assets			$	10,200
	29			Total Assets			$	1,632,478
		NOTE:
			Indicate the method used to estimate the market value of assets (e.g., appraisals; familiarity with comparable market
			prices, etc.) and the date the value was determined.

Liabilities and Equity
(General Business Case)

		Liabilities From Schedules
		Post-Petition
		Current Liabilities
	30		Salaries and wages		$	18,569
	31		Payroll taxes		$	1,058
	32		Real and personal property taxes
	33		Income taxes
	34		Sales taxes
	35		Notes payable (short term)
	36		Accounts payable (trade)	A	$	2,466
	37		Real property lease arrearage
	38		Personal property lease arrearage
	39		Accrued professional fees		$	364,288
	40		Current portion of long-term post-petition debt (due within 12 months)
	41		Other:
	42		DIP Financing		$	350,000
	43
	44		Total Current Liabilities		$	736,381

45	Long-Term Post-Petition Debt, Net of Current Portion
46		Total Post-Petition Liabilities		$	736,381
	Pre-Petition Liabilities (allowed amount)
47		Secured claims	F	$	12,403,473
48		Priority unsecured claims	F	$	242,761
49		General unsecured claims	F	$	2,643,536
50		Total Pre-Petition Liabilities		$	15,289,770
51		Total Liabilities		$	16,026,151
	Equity (Deficit)
52	Retained Earnings/(Deficit) at time of filing			$	(102,042,060	)
53	Capital Stock			$	1,039,564
54	Additional paid-in capital			$	117,000,652
55	Cumulative profit/(loss) since filing of case			$	(777,117	)
56	Post-petition contributions/(distributions) or (draws)
57
58	Market value adjustment			$	(29,614,712	)
59		Total Equity (Deficit)		$	(14,393,673	)
60	Total Liabilities and Equity (Deficit)			$	1,632,478

				$	(0	)

SCHEDULES TO THE BALANCE SHEET

(General Business Case)

Schedule A

Accounts Receivable and (Net) Payable

Receivables and Payables Agings

Accounts Receivable

[Pre and Post Petition]

Accounts Payable

[Post Petition]

Past Due

Post Petition Debt

0 -30 Days

2,466

31-60 Days

61-90 Days

91+ Days

21,800

Total accounts receivable/payable

21,800

2,466

Allowance for doubtful accounts

Accounts receivable (net)

21,800

Schedule B

Inventory/Cost of Goods Sold

Types and Amount of Inventory(ies)

Cost of Goods Sold

Inventory(ies)

Balance at

End of Month

Inventory Beginning of Month

Add -

Retail/Restaurants -

Net purchase

Product for resale

Direct labor

Manufacturing overhead

Distribution -

Freight in

Products for resale

Other:

Manufacturer -

Raw Materials

Work-in-progress

Less -

Finished goods

Inventory End of Month

Shrinkage

Other - Explain

Personal Use

Cost of Goods Sold

TOTAL

Method of Inventory Control

Inventory Valuation Methods

Do you have a functioning perpetual inventory system?

Indicate by a checkmark method of inventory used.

Yes

How often do you take a complete physical inventory?

Valuation methods -

FIFO cost

Weekly

LIFO cost

Monthly

Lower of cost or market

Quarterly

Retail method

Semi-annually

Other

Annually

Explain

Date of last physical inventory was

4/30/2010 0:00

Date of next physical inventory is

Schedule C Real Property
Description			Cost		Market Value






	Total	$	0	$	0

Schedule D Other Depreciable Assets
Description			Cost		Market Value
	Machinery & Equipment -
	Plastic Plant			$	1,190,000
	Assets for Sale


	Total	$	0	$	1,190,000
Furniture & Fixtures -




	Total	$	0	$	0
Office Equipment -
				$	10,000


	Total	$	0	$	10,000
Leasehold Improvements -




Total		$	0	$	0
Vehicles -




Total		$	0	$	0

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									$	0
FICA - Employee									$	0
FICA - Employer									$	0
Unemployment (FUTA)									$	0
Income									$	0
Other (Attach List)									$	0
Total Federal Taxes	$	0	$	0	$	0	$	0	$	0
State and Local
Income Tax Withholding									$	0
Unemployment (UT)									$	0
Disability Insurance (DI)									$	0
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	$	0	$	0	$	0	$	0	$	0
Total Taxes	$	0	$	0	$	0	$	0	$	0

Schedule F
Pre-Petition Liabilities

List Total Claims For Each Classification -					Claimed Amount		Allowed Amount (b)
Secured claims (a)					$	12,403,473	$	12,403,473
Priority claims other than taxes					$	84,276	$	36,750
Priority tax claims					$	206,011	$	206,011
General unsecured claims					$	2,633,510	$	2,643,536	As amended
(a) List total amount of claims even it under secured.
(b) Estimated amount of claim to be allowed after compromise or litigation. As an example, you are a defendant in a lawsuit
alleging damage of $10,000,000 and a proof of claim is filed in that amount. You believe that you can settle the case for a
claim of $3,000,000. For Schedule F reporting purposes you should list $10,000,000 as the Claimed Amount and
$3,000,000 as the Allowed Amount.

Schedule G Rental Income Information Not applicable to General Business Cases

Schedule H Recapitulation of Funds Held at End of Month

	Account 1		Account 2		Account 3		Account 4
Bank	Wells Fargo		Wells Fargo		Petty Cash
Account Type	Checking		Savings
Account No.	xxx-xxx-1215		xxx-xxx-7158
Account Purpose	operations
Balance, End of Month	$	7,132	$	150,045	$	138
Total Funds on Hand for all Accounts	$	157,314
Attach copies of the month end bank statement(s), reconciliation(s), and the check register(s) to the Monthly Operating Report.

STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
Increase/(Decrease) in Cash and Cash Equivalents
For the Month Ended 04/30/10
					Actual Current Month			Cumulative (Case to Date)
		Cash Receipts
	1		Rent/Leases Collected		$	0		$	0
	2		Cash Received from Sales
	3		Interest Received		$	44		$	78
	4		Borrowings		$	0		$	0
	5		Funds from Shareholders, Partners, or Other Insiders					$	350,000
	6		Capital Contributions					$	0
	7		Sales of Assets					$	389,050
	8		Sales of Assets Scrap					$	10,693
	9		Refund (Honeywell)					$	4
	10		Refund (Cafeteria Plan)					$	135
	11		MDP Payments from State					$	155,955
	12			Total Cash Receipts	$	44		$	905,914
		Cash Disbursements
	13		Payments for Inventory						0
	14		Selling					$	0
	15		Administrative / Legal		$	7,673		$	148,876
	16		Deposits					$	10,200
	17		Principal Payments on Debt					$	0
	18		Utilities		$	2,488		$	12,130
			Rent/Lease:					$	0
	19			Personal Property	$	1,499		$	11,666
	20			Real Property	$	8,000		$	76,784
			Amount Paid to Owner(s)/Officer(s)					$	0
	21			Salaries	$	23,806		$	130,401
	22			Draws				$	0
	23			Commissions/Royalties				$	0
	24			Expense Reimbursements	$	3,000		$	9,927
	25			Other Employee Expense Reimbursements	$	2,000		$	6,747
	26		Salaries/Commissions (less employee withholding)		$	15,316		$	133,580
	27		Management Fees					$	0
			Taxes:					$	0
	28			Employee Withholding	$	7,231		$	53,900
	29			Employer Payroll Taxes	$	3,096		$	21,543
	30			Real Property Taxes				$	0
	31			Other Taxes				$	1,108
	32		Other Cash Outflows:					$	0
	33			Liability / Life Insurance / Workers Comp	$	18,875		$	47,220
	34			Health Benefits	$	3,475		$	18,705
	35			Interest on CIWMB Loan \ Court approved payments	$	4,760		$	19,040
	36			Misc Supplies \ Charges \ Bank Charges	$	2,532		$	14,952
	37			Legal Settlement Cool Clean \ Two Court Approved payments				$	37,500
	38			Total Cash Disbursements:	$	103,752		$	754,279
	39		Net Increase (Decrease) in Cash		$	(103,708	)	$	151,636
	40		Cash Balance, Beginning of Period		$	261,022		$	5,678
	41		Cash Balance, End of Period		$	157,314		$	157,314

ECO2 PLASTICS INC - FORM 8-K - EX-99.1 - MONTHLY OPERATING REPORT DATED APRIL 30, 2010 - July 2, 2010

Attached files