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8-K - FORM 8-K - VALENCE TECHNOLOGY INCval_8k-112012.htm
EX-99.2 - EXHIBIT 99.2 - VALENCE TECHNOLOGY INCex99-2.htm
EX-99.1 - EXHIBIT 99.1 - VALENCE TECHNOLOGY INCex99-1.htm
Exhibit 99.3
 
MOR-1
   
UNITED STATES BANKRUPTCY COURT
     
CASE NAME:
In re Valence Technology, Inc.
   
PETITION DATE:
7/12/2012
   
CASE NUMBER: 12-11580     DISTRICT OF TEXAS: Western District    
PROPOSED PLAN DATE:
     
DIVISION:
     
 
MONTHLY OPERATING REPORT SUMMARY FOR MONTH
MONTH
 
07/13/2012 -07/31/2012
   
08/01/2012 - 8/31/2012
   
09/01/2012 - 09/30/2012
   
10/1/2012 - 10/31/2012
   
11/01/2012 - 11/30/2012
   
12/01/2012 - 12/31/2012
 
REVENUES (MOR-6)
    1,316,272.06       3,134,148.00       3,968,190.16       2,227,053.10       2,320,495.73       4,150,087.12  
INCOME BEFORE INT; DEPREC./TAX (MOR-6)
    87,284.86       (380,729.74 )     (181,026.71 )     (497,600.02 )     (697,907.84     (221,183.81 )
NET INCOME (LOSS) (MOR-6)
    75,905.59       (391,926.48 )     (192,018.70 )     (516,270.95 )     (727,704.11     (239,937.02
PAYMENTS TO INSIDERS (MOR-9)
    53,600.03       97,225.58       84,425.83       84,959.95       192,118.39       93,415.04  
PAYMENTS TO PROFESSIONALS (MOR-9)
    45,000.00       40,795.00       246,429.39       58,616.42       187,551.30       378,072.64  
TOTAL DISBURSEMENTS (MOR-7)
  $ 1,301,597.76     $ 5,137,790.77     $ 4,513,176.38     $ 5,480,489.14     $ 7,037,864.37     $ 6,638,116.29  
 
***The original of this document must be filed with the United States Bankruptcy Court and a copy must be sent to the United States Trustee***
 
      CIRCLE ONE
REQUIRED INSURANCE MAINTAINED
 
Are all accounts receivable being collected within terms?
Yes (No)
AS OF SIGNATURE DATE
 
EXP.
DATE
 
Are all post-petition liabilities, including taxes, being paid within terms?
(Yes) No
       
Have any pre-petition liabilities been paid?
Yes (No)
CASUALTY            YES (X ) NO ( )
 
September 30, 2013
 
If so, describe
   
LIABILITY             YES (X ) NO ( )
 
September 30, 2013
 
Are all funds received being deposited into DIP bank accounts?
(Yes) No
VEHICLE              YES (X ) NO ( )
 
September 30, 2013
 
Were any assets disposed of outside the normal course of business?
Yes (No)
WORKER'S           YES (X ) NO ( )
 
September 30, 2013
 
If so, describe
   
OTHER                  YES (X ) NO ( )
 
September 30, 2013
 
Are all U.S. Trustee Quarterly Fee Payments current?
(Yes) No
       
What is the status of your Plan of Reorganization?
In process; formulating the plan of reorganization.
 
ATTORNEY NAME:
Sabrina Streusand
 
I certify under penalty of perjury that the following complete
FIRM NAME:
Streusand, Landon & Ozburn LLP
 
Monthly Operating Report (MOR), consisting of MOR-1 through
ADDRESS:
811 Barton Springs Road
 
MOR-9 plus attachments, is true and correct.
 
Suite 811
           
CITY, STATE, ZIP:
Austin, TX 78704
 
SIGNED X _/S/ Donald E. Gottschalk                                                 TITLE: Acting Chief Financial Officer
TELEPHONE/FAX:
512-236-9900
   
(ORIGINAL SIGNATURE)
 
         
Donald E. Gottschalk
January 20, 2013
MOR-1         (PRINT NAME OF SIGNATORY) DATE    
 
 
 
     
SIGNED X _/S/ Donald E. Gottschalk                                                 TITLE: Acting Chief Financial Officer
                                                                                                              TITLE: Acting Chief Financial Officer
 
 
 

 
 
    CASE NAME: In re Valence Technology, Inc.          
    CASE NUMBER:
12-11580
         
 
COMPARATIVE BALANCE SHEETS
ASSETS
 
FILING DATE*
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
 
   
7/12/2012
   
07/13/2012 -07/31/2012
   
08/01/2012 - 8/31/2012
   
09/01/2012 - 09/30/2012
   
10/1/2012 - 10/31/2012
   
11/01/2012 - 11/30/2012
   
12/01/2012 - 12/31/2012
 
CURRENT ASSETS
                                         
Cash
    722,092.00       1,623,815.79       830,972.01       617,097.14       985,993.98       815,642.86       204,302.46  
Accounts Receivable, Net
    10,111,771.00       9,121,999.44       9,437,761.48       9,759,880.73       9,894,927.46       8,264,898.71       9,345,911.25  
Inventory: Lower of Cost or Market
    6,887,264.00       8,325,057.66       8,047,808.68       6,836,157.63       6,257,683.38       7,093,935.19       6,583,156.07  
Prepaid Expenses
    105,063.00       343,780.00       223,129.10       189,004.37       561,467.77       550,241.95       543,466.08  
Investments
                                                       
Cure Payments**
                            40,000.00       140,000.00       384,730.84       484,730.84  
Other
    28,079.00       28,078.58       28,078.58       306,499.65       270,000.00                  
TOTAL CURRENT ASSETS
    17,854,269.00       19,442,731.47       18,567,749.85       17,748,639.52       18,110,072.59       17,109,449.55       17,161,566.70  
PROPERTY, PLANT & EQUIP. @ COST
    2,228,373.00       2,228,373.45       2,228,373.45       2,228,373.45       2,228,373.45       2,228,373.45       2,228,373.45  
Less Accumulated Depreciation
    (1,997,313.00 )     (2,009,339.96 )     (2,019,310.26 )     (2,027,902.74 )     (2,036,458.18 )     (2,044,917.76 )     (2,053,377.33 )
NET BOOK VALUE OF PP & E
    231,060.00       219,033.49       209,063.19       200,470.71       191,915.27       183,455.69       174,996.12  
OTHER ASSETS
                                                       
1. Tax Deposits
    143,157.00       143,157.00       143,157.00       143,157.00       143,157.00       143,157.00       143,157.00  
2. Investments in Subsidiaries
    6,532,959.00       7,012,289.94       6,587,703.61       7,464,349.89       8,888,550.66       7,407,992.94       6,775,177.81  
3. Electric/Utility Deposit
            37,176.70       42,536.81       44,372.16       44,372.16       44,372.16       44,372.16  
4. Security deposits & Other Personal Property Not Already Listed
    96,880.00       95,564.71       95,564.71       148,636.42       148,636.42       148,636.42       148,636.42  
TOTAL ASSETS
  $ 24,858,325.00     $ 26,949,953.31     $ 25,645,775.17     $ 25,749,625.70     $ 27,526,704.10     $ 25,037,063.76     $ 24,447,906.21  
     
 * Per Schedules and Statement of Affairs
       
     
** See Exhibit C: Court-approved weekly cure payments totaling $95,802.25 to Kuehne + Nagel Logistics, NV and $88,928.59  Kuehne + Nagel, Inc.
     
    and Court-approved monthly cure payments totaling $300,000 to Tianjin Lishen Battery
   
                MOR-2
              Revised 07/01/98
 
 
 

 
 
    CASE NAME: In re Valence Technology, Inc.          
    CASE NUMBER:
12-11580
         
 
COMPARATIVE BALANCE SHEETS
LIABILITIES & OWNER'S
 
FILING DATE*
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
 
EQUITY
 
7/12/2012
   
07/13/2012 -
07/31/2012
   
08/01/2012 -
8/31/2012
   
09/01/2012 -
09/30/2012
   
10/1/2012 -
10/31/2012
   
11/01/2012 - 11/30/2012
   
12/01/2012 - 12/31/2012
 
LIABILITIES
                                         
POST-PETITION LIABILITIES(MOR-4)
          3,256,488.40       3,093,183.93       639,974.02       3,188,797.64       1,724,125.33       1,490,812.69  
PRE-PETITION LIABILITIES
                                                     
Notes Payable - Secured
    69,101,830.00       69,101,830.00       69,101,830.00       69,101,829.80       69,101,829.80       69,101,829.80       69,101,829.80  
Priority Debt*
    10,833.00       10,833.00       10,833.00                                  
Federal Income Tax
                                                       
FICA/Withholding
                                                       
Unsecured Debt
    9,204,733.61       9,204,733.61       9,204,733.61       9,225,833.26       9,226,196.96       9,226,196.96       9,226,196.96  
Warranty Reserve**
                                            1,124,919.97       1,124,919.97  
Dividends Payable**
                                            1,168,601.14       1,168,601.14  
Other***
                            2,923,030.75       2,923,030.75       635,171.01       635,171.01  
TOTAL PRE-PETITION LIABILITIES
    78,317,396.61       78,317,396.61       78,317,396.61       81,250,693.81       81,251,057.51       81,256,718.88       81,256,718.88  
TOTAL LIABILITIES
    78,317,396.61       81,573,885.01       81,410,580.54       81,890,667.83       84,439,855.15       82,980,844.21       82,747,531.57  
OWNER'S EQUITY (DEFICIT)
                                                       
PREFERRED STOCK
    8,609,999.72       8,609,999.72       8,609,999.72       8,609,999.72       8,609,999.72       8,609,999.72       8,609,999.72  
COMMON STOCK
    171,779.77       171,792.59       171,792.59       171,792.59       171,792.59       171,792.59       171,792.59  
ADDITIONAL PAID-IN CAPITAL
    549,886,180.17       549,922,620.70       549,991,928.45       550,028,573.30       550,055,604.04       550,081,572.09       550,107,999.60  
RETAINED EARNINGS: Filing Date
    (612,127,031.27 )     (612,127,031.27 )     (612,127,031.27 )     (612,127,031.27 )     (612,127,031.27 )     (612,127,031.27 )     (612,127,031.27 )
RETAINED EARNINGS: Post Filing Date
            75,905.59       (316,020.89 )     (508,039.59 )     (1,024,310.54 )     (1,752,014.65 )     (1,827,920.24 )
RETAINED EARNINGS: Adjustment for intercompany receivables, payables & investment in foreign subsidiary elimination
            (1,277,219.03 )     (2,095,473.98 )     (2,316,336.88 )     (2,599,205.59 )     (2,928,098.93 )     (3,234,465.76 )
TOTAL OWNER'S EQUITY (NET WORTH)
    (53,459,071.61 )     (54,623,931.70 )     (55,764,805.38 )     (56,141,042.13 )     (56,913,151.05 )     (57,943,780.45 )     (58,299,625.36 )
Total LIABILITIES & OWNERS EQUITY
  $ 24,858,325.00     $ 26,949,953.31     $ 25,645,775.16     $ 25,749,625.70     $ 27,526,704.10     $ 25,037,063.76     $ 24,447,906.21  
 * Per Schedules and Statement of Affairs
           
**Warranty Reserve and Dividends Payable included in "Other" in previous months
       
***Pre-petition general ledger accrued expenses
           
                   
                MOR-3
                Revised 07/01/98
 
 
 

 
 
    CASE NAME: In re Valence Technology, Inc.          
    CASE NUMBER:
12-11580
         
 
SCHEDULE OF POST-PETITION LIABILITIES
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
 
   
07/13/2012 -
07/31/2012
   
08/01/2012 -
8/31/2012
   
09/01/2012-
09/30/2012
   
10/1/2012 -
10/31/2012
   
11/01/2012 -
11/30/2012
   
12/01/2012 -
12/31/2012
 
TRADE ACCOUNTS PAYABLE
    107,476.70       70,198.59       107,579.38       300,514.04       174,154.00       339,694.80  
TAX PAYABLE
                                               
Federal Payroll Taxes
    28,458.65       39,681.67       45,224.65       44,977.67       19,659.09       23,744.82  
State Payroll Taxes
    1,682.04       2,275.13       2,568.07       2,556.27       1,227.28       1,444.72  
Ad Valorem Taxes
    146.74       146.74                               313.85  
Other Taxes
    1,543.19       701.16       684.04       2,175.05       684.04       1,947.94  
TOTAL TAXES PAYABLE
    31,830.62       42,804.70       48,476.76       49,708.99       21,570.41       27,451.33  
Debtor-in-Possession Financing
    N/A       N/A               2,532,996.57       970,365.36       734,449.36  
ACCRUED INTEREST PAYABLE
    N/A       N/A       1,701.90       7,755.44       21,230.37       10,205.54  
ACCRUED PROFESSIONAL FEES*
    172,759.99       122,497.50       10,354.50       111,347.29       350,616.74       157,858.87  
OTHER ACCRUED LIABILITIES
                                               
1. See attached Exhibit A **
    2,944,421.09       2,857,683.14       471,861.48       186,475.31       186,188.45       221,152.79  
2.
                                               
3.
                                               
TOTAL POST-PETITION LIABILITIES (MOR-3)
  $ 3,256,488.40     $ 3,093,183.93     $ 639,974.02     $ 3,188,797.64     $ 1,724,125.33     $ 1,490,812.69  
   *
Amount restricted to court-approved professionals
         
          MOR-4
              Revised 07/01/98
 
 
 

 
 
    CASE NAME: In re Valence Technology, Inc.          
    CASE NUMBER:
12-11580
         
 
                 
AGING OF POST-PETITION LIABILITIES
       
                 
MONTH
   
December 31, 2012
             
                                       
DAYS
   
TOTAL
   
TRADE
   
FEDERAL
   
STATE
   
AD VALOREM,
   
OTHER
 
           
ACCOUNTS
   
TAXES
   
TAXES
   
OTHER TAXES
       
0-30       1,483,960.39       332,842.50       23,744.82       1,444.72       2,261.79       1,123,666.56  
31-60       6,602.30       6,602.30                                  
61-90       250.00       250.00                                  
91+                                                  
TOTAL
    $ 1,490,812.69     $ 339,694.80     $ 23,744.82     $ 1,444.72     $ 2,261.79     $ 1,123,666.56  
 
AGING OF ACCOUNTS RECEIVABLE
                                                   
MONTH
   
07/13/2012 -
07/31/2012
   
08/01/2012 -
8/31/2012
   
09/01/2012 -
09/30/2012
   
10/1/2012 -
10/31/2012
   
11/01/2012 -
11/30/2012
   
12/01/2012 -
12/31/2012
 
                                                   
0-30 DAYS
      1,178,943.84       3,033,959.88       3,963,069.92       2,182,852.01       2,082,261.80       3,841,379.48  
31-60 DAYS
      4,033,882.35       975,630.13       1,819,159.45       3,691,032.60       2,241,548.72       1,688,649.02  
61-90 DAYS
      11,189.95       1,745,351.79               345,975.35       736,391.84       914,021.63  
91+ DAYS
      3,897,983.30       3,682,819.68       3,977,651.36       3,675,067.50       3,204,696.35       2,901,861.12  
TOTAL
    $ 9,121,999.44     $ 9,437,761.48     $ 9,759,880.73     $ 9,894,927.46     $ 8,264,898.71     $ 9,345,911.25  
 
             
 
MOR-5
      Revised 07/01/98
 
 
 

 
 
    CASE NAME: In re Valence Technology, Inc.          
    CASE NUMBER:
12-11580
         
 
STATEMENT OF INCOME (LOSS)
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
FILING TO
 
   
07/13/2012 -
07/31/2012
   
08/01/2012 -
8/31/2012
   
09/01/2012 -
09/30/2012
   
10/1/2012 -
10/31/2012
   
11/01/2012 -
11/30/2012
   
12/01/2012 -
12/31/2012
   
DATE
 
REVENUES (MOR-1)
    1,316,272.06       3,134,148.00       3,968,190.16       2,227,053.10       2,320,495.73       4,150,087.12       17,116,246.17  
TOTAL COST OF REVENUES
    796,930.61       2,465,606.87       3,083,624.26       1,927,556.07       2,077,770.41       3,505,303.05       13,856,791.27  
GROSS PROFIT
    519,341.45       668,541.13       884,565.90       299,497.03       242,725.32       644,784.07       3,259,454.90  
OPERATING EXPENSES:
                                                       
Selling & Marketing
    70,901.36       164,235.20       98,979.44       75,719.14       106,720.98       60,133.83       576,689.95  
General & Administrative
    236,481.17       637,456.99       503,881.76       514,486.74       349,646.29       279,395.81       2,521,348.76  
Insiders Compensation
    53,600.03       97,225.58       84,425.83       84,959.95       192,118.39       93,415.04       605,744.81  
Professional Fees
    45,000.00       40,795.00       246,429.39       58,616.42       187,551.30       378,072.64       956,464.75  
Research & Development
    26,074.03       109,558.10       131,876.19       63,314.80       104,596.20       54,950.56       490,369.88  
Other
                                                       
TOTAL OPERATING EXPENSES
    432,056.59       1,049,270.87       1,065,592.61       797,097.05       940,633.16       865,967.88       5,150,618.16  
INCOME BEFORE INT, DEPR/TAX (MOR-1)
    87,284.86       (380,729.74 )     (181,026.71 )     (497,600.02 )     (697,907.84 )     (221,183.81 )     (1,891,163.26 )
INTEREST EXPENSE REVERSAL
                    (4,286.00 )                             (4,286.00 )
DEPRECIATION
    6,359.24       9,970.30       8,592.48       8,555.44       8,459.58       8,459.57       50,396.61  
OTHER (INCOME) EXPENSE*
    (204.04 )     (31.10 )     (10.67 )     7,745.13       21,219.71       9,304.38       38,023.41  
OTHER ITEMS**
    5,224.06       1,257.54       6,696.18       2,370.36       116.98       989.26       16,654.38  
TOTAL INT, DEPR & OTHER ITEMS
    11,379.27       11,196.74       10,991.99       18,670.93       29,796.27       18,753.21       100,788.41  
NET INCOME BEFORE TAXES
    75,905.59       (391,926.48 )     (192,018.70 )     (516,270.95 )     (727,704.11 )     (239,937.02 )     (1,991,951.67 )
FEDERAL INCOME TAXES
                                                       
NET INCOME (LOSS) (MOR-1)
  $ 75,905.59     $ (391,926.48 )   $ (192,018.70 )   $ (516,270.95 )   $ (727,704.11 )   $ (239,937.02 )   $ (1,991,951.67 )
Accrual Accounting Required, Otherwise Footnote with Explanation.
         
* Includes interest income, expense and DIP Loan Associated Fees
         
** Includes realized and unrealized gains and losses on foreign currency transactions
       
                MOR-6
            Revised 07/01/98
 
 
 

 
 
    CASE NAME: In re Valence Technology, Inc.          
    CASE NUMBER:
12-11580
         
 
CASH RECEIPTS AND
 
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
FILING TO
 
DISBURSEMENTS
 
07/13/2012 -
07/31/2012
   
08/01/2012 -
8/31/2012
   
09/01/2012 -
09/30/2012
   
10/1/2012 -
10/31/2012
   
11/01/2012 -
11/30/2012
   
12/01/2012 -
12/31/2012
   
DATE
 
1. CASH-BEGINNING OF MONTH
  $ 722,091.73     $ 1,623,815.79     $ 830,972.01     $ 617,097.14     $ 985,993.98     $ 815,642.86     $ 722,091.73  
RECEIPTS:
                                                       
2. CASH SALES
    39,815.65       118,975.84       23,175.26       14,377.09       15,360.04       8,175.53       219,879.41  
3. COLLECTION OF ACCOUNTS RECEIVABLE
    2,163,506.17       2,718,765.49       3,647,415.37       2,082,817.80       4,059,800.11       3,117,033.68       17,789,338.62  
4. LOANS & ADVANCES ***
                    600,000.00       3,600,000.00       2,500,000.00       2,900,000.00       9,600,000.00  
5. SALE OF ASSETS
                                                       
6. OTHER (attach list) - See Attached Exhibit B
            1,507,205.66       28,710.88       152,191.09       550,198.21       1,566.68       2,239,872.52  
TOTAL RECEIPTS**
    2,203,321.82       4,344,946.99       4,299,301.51       5,849,385.98       7,125,358.36       6,026,775.89       29,849,090.55  
(Withdrawal) Contribution by Individual Debtor MFR-2*
                                                       
DISBURSEMENTS:
                                                       
7. NET PAYROLL
    128,863.59       278,656.12       261,685.45       360,776.76       313,842.70       244,985.63       1,588,810.25  
8. PAYROLL TAXES PAID
    44,629.25       89,926.43       92,187.34       85,353.48       145,783.03       79,083.09       536,962.62  
9. SALES, USE & OTHER TAXES PAID
            7,017.49       17.07       655.42       6,261.93               13,951.91  
10. SECURED/RENTAL/LEASES
    35,427.06       35,427.06       35,427.06       33,983.00       35,427.06       36,368.56       212,059.80  
11. UTILITIES & TELEPHONE
    28,612.95       22,670.79       22,097.51       26,753.99       18,351.58       10,784.06       129,270.88  
12. INSURANCE
    55,288.02       56,918.68       55,592.95       401,621.87       49,129.60       48,811.93       667,363.05  
13. INVENTORY PURCHASES
    322,744.40       1,188,050.64       1,080,000.00       1,620,000.00       810,000.00       1,890,000.00       6,910,795.04  
14. VEHICLE EXPENSES
                                                       
15. TRAVEL & ENTERTAINMENT
            24,686.76       2,415.85       10,683.34       10,805.06       18,300.30       66,891.31  
16. REPAIRS, MAINTENANCE & SUPPLIES
    5,342.36       19,401.72       7,218.17       48,407.84       115,335.46       32,015.50       227,721.05  
17. ADMINISTRATIVE & SELLING
    74,240.35       142,771.07       117,683.95       180,450.97       134,027.15       93,707.71       742,881.20  
18. OTHER (attach list) - See Attached Exhibit C
    557,316.78       3,122,657.01       2,467,025.59       2,528,570.17       5,398,900.80       3,780,689.39       17,855,159.74  
TOTAL DISBURSEMENTS FROM OPERATIONS
    1,252,464.76       4,988,183.77       4,141,350.94       5,297,256.84       7,037,864.37       6,234,746.17       28,951,866.85  
19. PROFESSIONAL FEES
    49,133.00       89,607.00       246,429.39       58,616.42       187,551.30       378,072.64       1,009,409.75  
20. U.S. TRUSTEE FEES
                            13,000.00                       13,000.00  
21. OTHER REORGANIZATION EXPENSES (attach list) *Exhibit D
            60,000.00       125,396.05       111,615.88       70,293.81       25,297.48       392,603.22  
TOTAL DISBURSEMENTS**
    1,301,597.76       5,137,790.77       4,513,176.38       5,480,489.14       7,295,709.48       6,638,116.29       30,366,879.82  
22. NET CASH FLOW
    901,724.06       (792,843.78 )     (213,874.87 )     368,896.84       (170,351.12 )     (611,340.40 )     (517,789.27 )
23. CASH - END OF MONTH (MOR-2)
  $ 1,623,815.79     $ 830,972.01     $ 617,097.14     $ 985,993.98     $ 815,642.86     $ 204,302.46     $ 204,302.46  
     
* Applies to Individual debtors only
         
MOR-7
 
**Numbers for the current month should balance (match)
  Revised 07/01/98
     
RECEIPTS and CHECKS/OTHER DISBURSEMENTS lines on MOR-8
       
     
***Total Advances from GemCap
           
 
 
 

 
 
    CASE NAME: In re Valence Technology, Inc.          
    CASE NUMBER:
12-11580
         
 
   
CASH ACCOUNT RECONCILIATION
                   
   
MONTH OF
   
December, 2012
                   
                               
BANK NAME
                             
ACCOUNT NUMBER
   #0351049270      #3300298835      #              
ACCOUNT TYPE
 
OPERATING
   
PAYROLL**
   
TAX
   
OTHER FUNDS***
   
TOTAL
 
BANK BALANCE
    97,854.79       3,953.43               114,974.43       216,782.65  
DEPOSITS IN TRANSIT
                                       
OUTSTANDING CHECKS
    12,480.19                               12,480.19  
ADJUSTED BANK BALANCE
  $ 85,374.60     $ 3,953.43             $ 114,974.43     $ 204,302.46  
BEGINNING CASH - PER BOOKS
    566,702.24       4,034.83               244,905.79       815,642.86  
RECEIPTS*
    6,025,219.14                       1,556.75       6,026,775.89  
TRANSFERS BETWEEN ACCOUNTS ****
    (50,000.00 )                     50,000.00          
WITHDRAWAL OR CONTRIBUTION BY INDIVIDUAL DEBTOR MFR-2
                                       
CHECKS/OTHER DISBURSEMENTS*
    6,456,546.78       81.40               181,488.11       6,638,116.29  
ENDING CASH - PER BOOKS
  $ 85,374.60     $ 3,953.43             $ 114,974.43     $ 204,302.46  
             
MOR-8
 
*Numbers should balance (match) TOTAL RECEIPTS and
  Revised 07/01/98
   
 TOTAL DISBURSEMENTS lines on MOR-7
     
             
   
** Employee Funded Health Savings Account
     
   
***Petty Cash, Credit Card Holding Accounts, Investment Account Silicon Valley Bank Securities, Fortis Bank VAT Refund Account, SVB Creditors Committee Deposit, and Foreign Bank Monthly Foreign Exchange
   
**** Creditors Committee Deposit
     
 
 
 

 
 
    CASE NAME: In re Valence Technology, Inc.          
    CASE NUMBER:
12-11580
         
 
PAYMENTS TO INSIDERS AND PROFESSIONALS
 
Of the total disbursements shown for the month, list the amount paid to insiders (as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the professionals.
Also, for insiders, identify the type of compensation paid (e.g., salary, commission, bonus, etc.)  (Attach additional pages as necessary).
 
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
 
INSIDERS: NAME/COMP TYPE
 
07/13/2012 -
07/31/2012
   
08/01/2012 -
8/31/2012
   
09/01/2012 -
09/30/2012
   
10/1/2012 -
10/31/2012
   
11/01/2012 -
11/30/2012
   
12/01/2012 -
12/31/2012
 
                                     
1. Adleman, Randall - Wages
    10,666.68       16,666.68       16,666.68       16,666.68       16,666.68       16,666.68  
2. Gottschalk, Donald - Wages
    8,266.67       12,916.67       12,916.67       12,916.67       12,916.67       12,916.67  
3. Kanode, Robert - Wages
    13,333.33       20,833.33       20,833.33       20,833.33       128,422.91          
4. Lim, Khoon Cheng - Wages
    10,666.68       16,666.68       16,666.68       16,666.68       16,666.68       16,666.68  
5. Williams, Roger A. - Wages
    10,666.68       16,666.68       16,666.68       16,666.68       16,666.68       16,666.68  
6. Fisher, T. Joseph-Wages*
                                            24,690.39  
7. Adleman, Randall - Contracted Bonus
            8,122.10                                  
8. Adleman, Randall - Expense Reimbursement
            2,199.25       387.41       374.22       277.41       256.67  
9.Gottschalk, Donald - Expense Reimbursement
            1,670.83       207.22       401.97               389.90  
10. Kanode, Robert - Expense Reimbursement
            68.00       81.16                          
11. Williams, Roger A. - Expense Reimbursement
            1,415.36               433.72       501.36       410.00  
12. T Joseph Fisher-Expense Reimbursement
                                            4,751.37  
TOTAL INSIDERS (MOR-1)
  $ 53,600.03     $ 97,225.58     $ 84,425.83     $ 84,959.95     $ 192,118.39     $ 93,415.04  
 
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
   
MONTH
 
PROFESSIONALS
 
07/13/2012 -
07/31/2012
   
08/01/2012 -
8/31/2012
   
09/01/2012 -
09/30/2012
   
10/1/2012 -
10/31/2012
   
11/01/2012 -
11/30/2012
   
12/01/2012 -
12/31/2012
 
                                     
1. Bridgepoint Consulting LLC
          40,000.00       37,873.58                    
2. PMB Helin Donovan, LLP
    45,000.00                                    
3. Lung Tin Int'l Patent & Trademark
                    5,098.30       9,364.53       2,610.10        
4. McFadden, Fincham
            795.00               4,574.70       4,637.00       2,963.80  
5. Streusand, Landon & Ozburn LLP
                    184,590.86               134,526.80       169,653.30  
6. Virtual CFO
                    16,432.93                          
7. VMW Accountants
                    2,433.72       940.36       738.42       1,993.12  
8. KIM & CHANG
                            1,587.24       11,543.99          
9. KRAUS & WEISERT
                            10,232.85                  
10. MIURA & ASSOCIATES
                            5,691.74               11,060.70  
11. WELLS, ST. JOHN PS
                            1,225.00       275.00       850.00  
12. Wilson Sonsini Goodrich & Rosati
                            25,000.00       25,000.00       20,776.90  
13. Pope, Shamsie & Dooley, LLP
                                    7,524.00          
14. DIMOCK STRATTON LLP
                                    695.99          
15. BRINKMAN PROTILLO, PC
                                            170,774.82  
TOTAL PROFESSIONALS (MOR-1)
  $ 45,000.00     $ 40,795.00     $ 246,429.39     $ 58,616.42     $ 187,551.30     $ 378,072.64  
               
 
MOR-9
          Revised 07/01/98
               
 
* Includes $1357.05 per month reimbursement for self paid health insurance
       
 
 
 

 
 
   EXHIBIT A - Other Accrued Expenses as of December 31, 2012
CREDITOR’S NAME, MAILING ADDRESS INCLUDING ZIP CODE AND AN
ACCOUNT NUMBER
DESCRIPTION OF LIABILITY
Post Petition Liability
 
AT&T
PO BOX 6463
CAROL STREAM , IL 60197
Account # 4776758
 
Telecommunication
                             5,403.55
 
GemCap Lending I, LLC
24955 Pacific Coast Highway 3 A202
Malibu, CA 90265
Account #  NA
DIP Financing - Accrued fees
 
4,456.28
 
METAL CONVERSION TECH. LLC
1 E.PORTER STREET
CARTERSVILLE, GA 30120
Account # NA
 
Disposal of hazardous material
12,300.00
 
MICHELE W. SHAFE
CLARK COUNTY ASSESSOR
12500 S. GRAND CENTRAL PARKWAY, 2ND FLOOR
LAS VEGAS, NV 89155
Account # 03177499
Property tax
                             2,266.97
 
Office of the US Trustee
903 San Jacinto Blvd #230
Austin , TX 78701
Case # 12-11580
Bankruptcy administration
                           20,000.00
 
SILICON VALLEY BANK
P.O. BOX 228
WAKEFIELD, MA 01880
Account # NA
Corporate Credit Card
                           20,944.34
 
TAMCO CAPITAL CORPORATION
P.O. BOX 956591
SAINT LOUIS, MO 63195
Account # 1114914
Office phone system rental
                             2,292.86
 
SHAREHOLDER.COM
P.O. BOX 8500
PHILADELPHIA, PA 19178
Account # 900001985
Investor Relations
                             3,345.00
 
Tianjin Lishen Battery Joint-
6 Lanyuan Road
Huayuan Hi-Tech Industry Park,
Tianjin 300384, PR China
Account # Valence Energy
Legal fees due 7/31/2014
                             7,000.00
 
 
Total
                           78,009.00
 
   EXHIBIT A - Received but not Invoiced as of December 31, 2012
CREDITOR’S NAME, MAILING ADDRESS INCLUDING ZIP CODE AND
ACCOUNT NUMBER
DESCRIPTION OF LIABILITY
Post-Petition
Pre-Petition
       
INTERTEK TESTING SERVICES NA, INC,
1809 10TH STREET, SUITE 400
PLANO, TX 75074
USA
Account # 99411
Testing services
608.00
 
LONGHORN OFFICE PRODUCTS
12303 TECHNOLOGY BLVD.
SUITE 940
AUSTIN, TX 78727
Account # 3063
 
Office supplies
764.15
 
RALPH'S INDUSTRIAL ELECTRONIC SUPPLIES
3112 CAMERON STREET
LAFAYETTE, LA 70502
USA
Account # 010000012437
Misc. parts
4,522.20
 
MOUSER ELECTRONICS
P.O. BOX 99319
FORT WORTH, TX 76199
Account # 1709746
Conn, DB9 Female
1.89
 
 
Total
5,896.24
 
 
 
 

 
 
General Ledger Accruals for Estimated Expenses as of December 31, 2012
   
Ledger account
Account name
Post-Petition
Pre-Petition
Closing Balance
12012
Current portion - Deferred rent
1,867.00
40,056.00
41,923.00
12101
Garnishments payable
0.00
0.00
0.00
12102
Payroll clearing
127,253.73
(58,794.88)
68,458.85
12103
Accrued vacation
(19,665.72)
261,094.31
241,428.59
12105
Medical insurance payable
2,094.63
-535.96
1,558.67
12107
401(k) payable
5,787.44
2,641.10
8,428.54
12108
Bonus payable
36,714.00
141,960.03
178,674.03
12109
SAR liability
0.00
0.00
0.00
12211
Extended warranty reserve
(3,288.60)
6,577.40
3,288.80
12303
Customer deposits
44,828.10
17,945.01
62,773.11
12310
Reserve for customer rebates
(40,425.00)
203,275.00
162,850.00
12706
Deferred rent
(20,953.00)
20,953.00
0.00
         
 
Total
$134,212.58
$635,171.01
 
         
12210
Warranty Reserve
$3,034.97
$1,124,919.97
1,127,954.94
         
12221
Dividends Payable
$0.00
$1,168,601.14
1,168,601.14
         
 
Grand Total
$221,152.79
   
 
 
 

 
 
MOR-7
   EXHIBIT B - Other Cash Receipts  December 2012
   
Date
Subsidiary/Company
Description
Amount
Interest Earned:
     
12/7/2012
Silicon Valley Bank
Interest earned on CD deposit account held at Silicon Valley Bank
9.93
12/3/2012
Silicon Valley Bank
Interest paid on Silicon Valley Bank Investment account
0.03
Foreign Exchange Adjustment
   
12/31/2012
Fortis Bank, Belgium
End of Month Foreign Exchange Adjustment
1,556.72
     
$1,566.68
 
 
 

 
 
MOR-7
   EXHIBIT C - Other Cash Disbursements  December 2012
Payments to Subsidiaries or Payments on Behalf of Subsidiaries
Date
Subsidiary/Company
Description
Amount
12/18/2012
VALENCE (SIP) - VET
Wire Transfer sent to Valence VET for purchase of finished goods
500,000.00
12/17/2012
Pay Check Limited
Transfer to Pay Check LTD, foreign payroll processing company for payment of foreign subsidiary (Valence Technology Cayman Islands, Inc) employee wages & taxes
44,773.39
     
$544,773.39
Customer Payments Remitted to GemCap for Payment on Loan
 
Date
Subsidiary/Company
Description
Amount
12/31/2012
GemCap Lending I, LLC
Accounts Receivable payments transferred to GemCap DIP Lender
                 3,135,916.00
     
 $3,135,916.00
Cure Payments Remitted
   
Date
Subsidiary/Company
Description
Amount
9/17/2012
Kuehne+Nagel Logistics, NV
1st Weekly Cure Payment
                      10,000.00
9/25/2012
Kuehne+Nagel Logistics, NV
2nd Weekly Cure Payment
                      10,000.00
9/17/2012
Kuehne + Nagel, Inc.
1st Weekly Cure Payment
                      10,000.00
9/26/2012
Kuehne + Nagel, Inc.
2nd Weekly Cure Payment
                      10,000.00
   
Total September Payments:
                      40,000.00
       
10/5/2012
KUEHNE & NAGEL LOGISTICS NV
3rd Weekly Cure Payment
10,000.00
10/12/2012
KUEHNE & NAGEL LOGISTICS NV
4th Weekly Cure Payment
10,000.00
10/22/2012
KUEHNE & NAGEL LOGISTICS NV
5th Weekly Cure Payment
10,000.00
10/25/2012
KUEHNE & NAGEL LOGISTICS NV
6th Weekly Cure Payment
10,000.00
10/31/2012
KUEHNE & NAGEL LOGISTICS NV
7th Weekly Cure Payment
10,000.00
10/5/2012
KUEHNE & NAGEL, INC.
3rd Weekly Cure Payment
10,000.00
10/12/2012
KUEHNE & NAGEL, INC.
4th Weekly Cure Payment
10,000.00
10/22/2012
KUEHNE & NAGEL, INC.
5th Weekly Cure Payment
10,000.00
10/25/2012
KUEHNE & NAGEL, INC.
6th Weekly Cure Payment
10,000.00
10/31/2012
KUEHNE & NAGEL, INC.
7th Weekly Cure Payment
10,000.00
   
Total October Payments:
$100,000.00
       
11/8/2012
KUEHNE & NAGEL LOGISTICS NV
8th Weekly Cure Payment
10,000.00
11/16/2012
KUEHNE & NAGEL LOGISTICS NV
9th Weekly Cure Payment
10,000.00
11/20/2012
KUEHNE & NAGEL LOGISTICS NV
10th Weekly Cure Payment-Final
5,802.25
11/8/2012
KUEHNE & NAGEL, INC.
8th Weekly Cure Payment
10,000.00
11/16/2012
KUEHNE & NAGEL, INC.
9th Weekly Cure Payment-Final
8,928.59
11/13/2012
TIANJIN LISHEN BATTERY
1st-3rd Monthly Cure Payment
150,000.00
11/29/2012
TIANJIN LISHEN BATTERY
4th Monthly Cure Payment
50,000.00
   
Total November Payments:
$244,730.84
       
12/31/2012
TIANJIN LISHEN BATTERY
5th Monthly Cure Payment
$100,000.00
   
Total December  Payments:
$100,000.00
       
 
Total Other Payments
 
$3,780,689.39
 
 
 

 
 
MOR-7
   EXHIBIT D - Other Reorganization Expenses December 2012
 
Date
Vendor
Description
Amount
12/7/2012
GemCap Lending I, LLC
Interest and Fees
25,164.98
12/17/2012
GemCap Lending I, LLC
Reimbursement to GemCap for legal fees
132.50
     
 $     25,297.48