Case KJC Doc 1300 Filed 05/08/17 Page 1 of 5

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1 Case KJC Doc 1300 Filed 05/08/17 Page 1 of 5 UNITED STATES BANKRUPTCY COURT THE DISTRICT OF DELAWARE IN RE: CASE NUMBER: (KJC) Draw Another Circle, LLC, et al., JUDGE: Hon. Kevin J. Carey DEBTORS. (1) CHAPTER 11 HASTINGS CREDITORS' LIQUIDATING TRUST POSTCONFIRMATION QUARTERLY OPERATING REPORT FOR THE PERIOD FROM February 20, 2017 TO March 31, 2017 Curtis R. Smith in his capacity as Liquidating Trustee of the Hastings Creditors' Liquidating Trust, files this PostConfirmation Quarterly Operating Report in accordance with the Guidelines established by the United States Trustee and FRBP LIQUIDATING TRUSTEE'S ADDRESS: Curtis R. Smith Cloudcroft Drive Poway, CA, Bruce D. Buechler (858) (Cell) Lowenstein Sandler LLP 1251 Avenue of the Americas New York, NY, (212) (Phone) COCOUNSEL TO CURTIS R. SMITH, LIQUIDATING TRUSTEE OF THE HASTINGS CREDITORS' LIQUIDATING TRUST: This Quarterly Operating Report has been prepared solely for the purpose of complying with the postconfirmation quarterly reporting requirements as established with the United States Trustee. The financial information contained herein is limited in scope and covers a limited time period. Moreover, such information is preliminary and unaudited, and is not prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). (1) The Debtors and the last four digits of their respective federal taxpayer identification numbers are as follows: Draw Another Circle, LLC (2102); Hastings Entertainment, Inc. (6375); MovieStop, LLC (9645); SP Images, Inc. (7773); and Hastings Internet, Inc. (0809). 1

2 Case KJC Doc 1300 Filed 05/08/17 Page 2 of 5 POSTCONFIRMATION QUARTERLY OPERATING REPORT Case No.: (KJC) HASTINGS CREDITORS' LIQUIDATING TRUST Reporting Period: February 20, 2017 to March 31, 2017 Notes to the Quarterly Operating Report GENERAL: On February 14, 2017 (the Confirmation Date ), the BankruptcyCourt entered an order (the Confirmation Order [Docket No. 1195]) confirming the Debtors First Amended Joint Combined Disclosure Statement and Plan of Liquidation under Chapter 11 of the Bankruptcy Code (the "Plan"). On February 20, 2017 (the Effective Date ), the Debtors consummated the Plan under the Bankruptcy Code and the Plan became Effective. Report includes activity from the following Debtors and related case numbers: Trust Hastings Creditors' Liquidating Trust Case Number Case Number Debtor Draw Another Circle, LLC Hastings Entertainment, Inc MovieStop, LLC SP Images, Inc Hastings Internet, Inc Notes to the QOR (1) The financial information contained herein is presented on a preliminary and unaudited basis and remains subject to future adjustment. (2) This Quarterly Operating Report ("QOR") has been prepared solely for the purpose of complying with the Quarterly reporting requirements applicable in the bankruptcy cases and is in a format acceptable to the U.S. Trustee. (3) As of the Effective Date of the Plan, the Liquidating Trustee prepared an opening balance sheet based on the final closing balance sheets of each of the respective Debtors. All information is tentative and preliminary, and subject to material modification should subsequent information be provided to the Trust. (4) The unaudited consolidated financial statements have been derived from the books and records of Draw Another Circle, LLC and related Debtors and Nondebtors. The Quarterly financial information contained herein is unaudited, limited in scope and has not been subjected to the same level of accounting review and testing that applies to the preparation of quarterly and annual financial information in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). Accordingly, upon the application of such procedures, Trust believes that the financial information may be subject to change, and that these changes could be material. 2

3 Case KJC Doc 1300 Filed 05/08/17 Page 3 of 5 STATEMENT OF LIMITATIONS AND DISCLAIMER REGARDING THE HASTINGS CREDITORS' LIQUIDATING TRUST QUARTERLY OPERATING REPORT By order entered on February 14, 2014 (the "Confirmation Order"), the Bankruptcy Court confirmed the First Amended Joint Combined Disclosure Statement and Plan of Liquidation Under Chapter 11 of the Bankruptcy Code, as amended from time to time (the "Plan"), which provides for, among other things, the establishment of a liquidating trust (the "Trust") to effectuate the Plan. The Plan became effective on February 20, 2017 (the "Effective Date"). Curtis R. Smith (the "Liquidating Trustee") was appointed to serve as the Liquidating Trustee of the Trust pursuant to the Confirmation Order and that certain Draw Another Circle, LLC Trust Agreement dated as of the Effective Date (the "Trust Agreement"), by and among Draw Another Circle, LLC, et al. (the "Debtors") and the Liquidating Trustee. Pursuant to the Plan, Confirmation Order and the Trust Agreement, the Liquidating Trustee has signed the Report as the authorized signatory of the Liquidating Trust. The Report does not purport to represent financial statements prepared in accordance with Generally Accepted Accounting Principles in the United States ("GAAP"), nor is it intended to be fully reconciled with the financial statements of each Debtor. Additionally, the Report contains unaudited information that is subject to further review and potential adjustment. In preparing the Report, the Liquidating Trustee relied upon financial data derived from the Trust's books and records that was available at the time of such preparation. Although reasonable efforts were made to ensure the accuracy and completeness of such financial information, inadvertent errors or omissions, as well as the discovery of conflicting, revised or subsequent information, may cause a material change to the Report. Accordingly, all rights are reserved to amend, supplement or otherwise modify the Report as is necessary and appropriate. Notwithstanding the foregoing, the Trust shall not be required to update the Report. 3

4 Case KJC Doc 1300 Filed 05/08/17 Page 4 of 5 POST CONFIRMATION QUARTERLY OPERATING REPORT HASTINGS CREDITORS' LIQUIDATING TRUST ATTACHMENT NO.1 QUESTIONNAIRE I. Have any assets been sold or transferred outside the normal course of business, or outside the Plan of Liquidation during this renortina period? 2. Are any postconfirmation sales or payroll taxes past due? X 3. Are any amounts owed to postconfirmation creditors/vendors over 90 days delinquent? X 4. Is the Debtor current on all postconfirmation plan payments? X xif the 8JlSWer to any of the above questions IS " YES, " provide a detailed explanation of each item on a separate sheet YES" NO X INSURANCE INFORMATION YES" I. Are real and personal property, vehicle/auto, general liability, fire, theft. worker's compensation, and other necessary X insurance coverage in effect? 2. Are all premium payments current? X *Ifthe answer to any of the above questions IS "NO," provide a detailed explanation of each Item on a separate sheet NO CONFIRMATION OF INSURANCE Delinquency TYPE of POLICY and CARRIER Period of Coveraae Payment Amount and Frequency Amount Property Insurance Llovd's of London 3/ to date $ General Liabilitv Crum and Forster 3/ to 3/ date Professional Liabilitv Hndson Svecialtv Insurance to 4/ date "DESCRIBE PERTINENT DEVEWPMENTS EVENTS, AND MATTERS l)urlng TmSREPORTING PnIOD: On February 20, 2017 (the "Effective Date"), the Debtors consummated all requirements under the Baokruptcy Code and the Plan became Effective. The Liquidating Trust has continued to pay normal administrative expenses in the ordinary course. Per the Plan, the Trust has begun making payments under the confirmed Plan to holders of allowed Claims. Estimated Date of Filing the Application for Final Decree: I declare under penalty of perjury that this statement and tbe accompaoying documents and reports are true and correct to the est of my knowledge and belief. Date~ &; ;hi? Curtis R. Smith Liquidating Trustee Hastings Creditors' Liquidating Trust 4

5 Case KJC Doc 1300 Filed 05/08/17 Page 5 of 5 POSTCONFIRMATION QUARTERLY OPERATING REPORT ATTACHMENT NO. 2 HASTINGS CREDITORS' LIQUIDATING TRUST CHAPTER 11 POSTCONFIRMATION SCHEDULE OF RECEIPTS AND DISBURSEMENTS (1)(2) ($ 000's) Case Name Draw Another Circle, LLC, et al. Case No. (Jointly Administered) (KJC) Plan Effective Date: February 20, 2017 Reporting Period: February 20, 2017 to March 31, 2017 Quarterly Cumulative Total 1. CASH & CASH EQUIVALENTS (Beginning of Period) $ 14,806 $ 14, INCOME or RECEIPTS during the Period (i) Other Income $ 112 $ 112 (ii) Interest Income (iii) Refund Receipts (iv) Tax Refunds (v) Reserve Recoveries (vi) Preference Settlements Total Receipts $ 311 $ DISBURSEMENTS a. Operating Expenses (Fees/Taxes) (i) U.S. Trustee Quarterly Fees $ $ (ii) Federal Taxes 3 3 (iii) States Taxes 1 1 (iv) Other Taxes (v) Bank Fees 7 7 b. All Other Operating Expenses: (i) Professional Fees: Trust Contractors $ 89 $ 89 (ii) Professional Fees: Pre Effective Date 2,441 2,441 (iii) Professional Fees: Trustee Fees and Expenses (iv) Office Expenses (v) Other Expenses 1 1 c. Plan Payments: (i) Administrative, Priority, and Secured Claims $ 799 $ 799 (ii) Convenience Class Claims (iii) General Unsecured Claims Total Disbursements (Operating & Plan) $ 3,562 $ 3, CASH & CASH EQUIVALENTS (End of Period) $ 11,555 $ 11,555 Individual amounts may be subject to $1 rounding. Notes: (1) This schedule includes any and all disbursements made under the Plan or in the ordinary course of the Liquidating Trust's postconfirmation business, whether the disbursements are made through the Trust or by a third party. (2) The schedule has been presented using the "cash basis" method of accounting. 5