Case 1512465CSS Doc 736 Filed 09/06/16 Page 1 of 12
Case 1512465CSS Doc 736 Filed 09/06/16 Page 2 of 12 In re Arctic Sentinel Direct, Inc. [f/k/a Fuhu Direct, Inc.] Case No. 1512504 Debtor Reporting Period: July 31, 2016 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS Amounts reported should be per the debtor's books, not the bank statement. The beginning cash should be the ending cash from the prior month or, if this is the first report, the amount should be the balance on the date the petition was filed. The amounts reported in the "CURRENT MONTH ACTUAL" column must equal the sum of the four bank account columns. The amounts reported in the "PROJECTED" columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM IR1). Attach copies of the bank statements and the cash disbursements journal. The total disbursements listed in the disbursements journal must equal the total disbursements reported on this page. A bank reconciliation must be attached for each account. [See 1 (CON'T)] BANK ACCOUNTS CURRENT MONTH CUMULATIVE FILING TO DATE OPER. PAYROLL TAX OTHER ACTUAL PROJECTED ACTUAL PROJECTED CASH BEGINNING OF MONTH $ $ $ $ $ $ $ $ RECEIPTS CASH SALES $ $ $ $ $ $ $ $ ACCOUNTS RECEIVABLE LOANS AND ADVANCES SALE OF ASSETS OTHER (ATTACH LIST) TRANSFERS (FROM DIP ACCTS) 325 325 975 TOTAL RECEIPTS $ 325 $ $ $ $ 325 $ $ 975 $ DISBURSEMENTS NET PAYROLL $ $ $ $ $ $ $ $ PAYROLL TAXES SALES, USE, & OTHER TAXES INVENTORY PURCHASES SECURED/ RENTAL/ LEASES INSURANCE ADMINISTRATIVE SELLING OTHER (ATTACH LIST) OWNER DRAW * TRANSFERS (TO DIP ACCTS) PROFESSIONAL FEES U.S. TRUSTEE QUARTERLY FEES 325 325 975 COURT COSTS TOTAL DISBURSEMENTS $ 325 $ $ $ $ 325 $ $ 975 $ NET CASH FLOW $ $ $ $ $ $ $ $ (RECEIPTS LESS DISBURSEMENTS) CASH END OF MONTH $ $ $ $ $ $ $ $ * COMPENSATION TO SOLE PROPRIETORS FOR SERVICES RENDERED TO BANKRUPTCY ESTATE THE FOLLOWING SECTION MUST BE COMPLETED DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN) TOTAL DISBURSEMENTS LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts) TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES $ $ 325 325
Case 1512465CSS Doc 736 Filed 09/06/16 Page 3 of 12 In re Arctic Sentinel Direct, Inc. [f/k/a Fuhu Direct, Inc.] Case No. 1512504 Debtor Reporting Period: July 31, 2016 BANK RECONCILIATIONS Continuation Sheet for 1 A bank reconciliation must be included for each bank account. The debtor's bank reconciliation may be substituted for this page. BALANCE PER BOOKS Operating Payroll Tax Other # # # # BANK BALANCE (+) DEPOSITS IN TRANSIT (ATTACH LIST) () OUTSTANDING CHECKS (ATTACH LIST) OTHER (ATTACH EXPLANATION) ADJUSTED BANK BALANCE * * Adjusted bank balance must equal balance per books DEPOSITS IN TRANSIT Date Amount Date Amount Date Amount Date Amount CHECKS OUTSTANDING Ck. # Amount Ch. # Amount Ck. # Amount Ck. # Amount OTHER
Case 1512465CSS Doc 736 Filed 09/06/16 Page 4 of 12 In re Arctic Sentinel Direct, Inc. [f/k/a Fuhu Direct, Inc.] Case No. 1512504 Debtor Reporting Period: July 31, 2016 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID This schedule is to include all retained professional payments from case inception to current month Payee Period Covered Amount Approved Check Amount Paid YearToDate Payor Number Date Fees Expenses Fees Expenses
Case 1512465CSS Doc 736 Filed 09/06/16 Page 5 of 12 In re Arctic Sentinel Direct, Inc. [f/k/a Fuhu Direct, Inc.] Case No. 1512504 Debtor Reporting Period.: July 31, 2016 CONSOLIDATED STATEMENT OF OPERATIONS [1] (Income Statement) The Statement of Operations is to be prepared on an accrual basis. The accrual basis of accounting recognizes revenue when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid. Cumulative REVENUES Month Filing to Date Gross Revenues 6,038,500.48 Less: Returns and Allowances (2,717,006.68) Net Revenue 3,321,493.80 COST OF GOODS SOLD Beginning Inventory 11,150,206.39 Add: Purchases Add: Cost of Labor Add: Other Costs (attach schedule) (5,014,843.19) Less: Ending Inventory Cost of Goods Sold 6,135,363.20 Gross Profit (Loss) (2,813,869.40) OPERATING EXPENSES Advertising Auto and Truck Expense Bad Debts Contributions Employee Benefits Programs 101,447.38 Insider Compensation* 126,209.34 Insurance 272,681.93 Management Fees/Bonuses Office Expense 134,849.32 Pension & ProfitSharing Plans Repairs and Maintenance Rent and Lease Expense 4,793.51 610,697.80 Salaries/Commissions/Fees 23,547.76 1,552,000.70 Supplies Taxes Payroll 2,362.09 175,370.19 Taxes Real Estate Taxes Other 5,873.97 Travel and Entertainment Utilities 178,778.27 Other (attach schedule) 7,707.21 2,431,023.20 Total Operating Expenses Before Depreciation 38,410.57 5,588,932.10 Depreciation/Depletion/Amortization 312,442.88 Net Profit (Loss) Before Other Income & Expenses (38,410.57) (8,715,244.37) OTHER INCOME AND EXPENSES Other Income (attach schedule) Interest Expense (Interest Income) (10.96) 376,695.57 Other Expense (attach schedule) 2,534,290.20 Net Profit (Loss) Before Reorganization Items (38,399.61) (11,626,230.14) REORGANIZATION ITEMS Professional Fees 286,253.09 5,306,779.84 U. S. Trustee Quarterly Fees 13,975.00 38,675.00 Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet) Gain (Loss) from Sale (per auction with 1/29/2016 close) (71,711,988.34) Other Reorganization Expenses (attach schedule) Total Reorganization Expenses 300,228.09 (66,366,533.50) Income Taxes Net Profit (Loss) (338,627.70) 54,740,303.36 *"Insider" is defined in 11 U.S.C. Section 101(31). [1] Debtors do not keep separate books and records for Arctic Sentinel, Inc., Arctic Sentinel Holdings, Inc., Arctic Sentinel Direct, Inc. and Sentinel Arctic, Inc. As such, the schedule represents the consolidated records.
Case 1512465CSS Doc 736 Filed 09/06/16 Page 6 of 12 In re Arctic Sentinel Direct, Inc. [f/k/a Fuhu Direct, Inc.] Case No. 1512504 Debtor Reporting Period.: July 31, 2016 CONSOLIDATED STATEMENT OF OPERATIONS continuation sheet [1] Cumulative BREAKDOWN OF "OTHER" CATEGORY Month Filing to Date Other Costs Inventory Transferred on Sale $ $ 5,014,843.19 Other Operational Expenses Dues and Subscriptions $ 5,821.54 $ 13,220.08 Bank Fees 1,885.67 39,717.50 Ordinary Course Professionals 70,307.70 Equipment Purchase 1,643.00 Other Contractor Fees 15,065.00 Shipping and Postage 422,326.50 Warehouse and Logistics 612,101.38 Data Cloud Management 360,758.91 Customer Support 286,625.91 CES Deposit Write Off 177,600.00 Product Testing, Repair and Licensing Costs 147,052.21 Royalty and Licensing 130,828.08 Software Licensing Costs 71,817.74 Merchant Account Fees 55,425.03 Gift Card Fees 13,195.65 Other Prepaid Amortization 20,892.50 Billing Support 10,133.63 Sales Tax Support Fees 1,552.55 Other Fees 161.54 Contractor Refund for Overpayment (19,401.71) Total Other Operational Expenses $ 7,707.21 $ 2,431,023.20 Other Income N/A Other Expenses Secured Lender Final Settlement $ $ 1,277,582.48 Fuhu Taiwan Operations 961,707.72 DebtorinPossession Loan and Break Up Fees 295,000.00 Total Other Expenses $ $ 2,534,290.20 Other Reorganization Expenses N/A $ $ Reorganization Items Interest Earned on Accumulated Cash from Chapter 11: Interest earned on cash accumulated during the chapter 11 case, which would not have been earned but for the bankruptcy proceeding, should be reported as a reorganization item. [1] Debtors do not keep separate books and records for Arctic Sentinel, Inc., Arctic Sentinel Holdings, Inc., Arctic Sentinel Direct, Inc. and Sentinel Arctic, Inc. As such, the schedule represents the consolidated records.
Case 1512465CSS Doc 736 Filed 09/06/16 Page 7 of 12 In re Arctic Sentinel Direct, Inc. [f/k/a Fuhu Direct, Inc.] Case No. 1512504 Debtor Reporting Period.: July 31, 2016 CONSOLIDATED BALANCE SHEET [1] The Balance Sheet is to be completed on an accrual basis only. Prepetition liabilities must be classified separately from postpetition obligations. BOOK VALUE AT END OF BOOK VALUE ON ASSETS CURRENT REPORTING MONTH PETITION DATE CURRENT ASSETS Unrestricted Cash and Cash Equivalents 11,492,845.42 2,021,256.12 Restricted Cash and Cash Equivalents (see continuation sheet) 421,117.25 471,200.00 Accounts Receivable (Net) 5,219,112.45 Notes Receivable Inventories (net) 11,150,206.39 Other Receivables 101,402.45 Security Deposits 192,257.42 192,257.42 Prepaid Expenses 883,038.81 Professional Retainers 205,140.02 202,140.02 Other Current Assets (attach schedule) TOTAL CURRENT ASSETS 12,311,360.11 20,240,613.66 PROPERTY AND EQUIPMENT Real Property and Improvements Machinery and Equipment Furniture, Fixtures and Office Equipment 1,425,998.70 Leasehold Improvements 2,863,275.79 Vehicles 50,144.66 Capitalized Software 5,163,640.49 Less Capitalized Software Accumulated Depreciation (1,925,723.44) Less Accumulated Depreciation (1,266,317.90) TOTAL PROPERTY & EQUIPMENT 6,311,018.30 OTHER ASSETS Loans to Insiders* Other Assets (attach schedule) 7,666,921.42 8,311,378.61 TOTAL OTHER ASSETS 7,666,921.42 8,311,378.61 TOTAL ASSETS 19,978,281.53 34,863,010.57 BOOK VALUE AT END OF BOOK VALUE ON LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition) Accounts Payable 103,953.80 Taxes Payable (refer to FORM 4) 32,180.02 Wages Payable 8,986.63 Notes Payable Rent / Leases Building/Equipment Secured Debt / Adequate Protection Payments Professional Fees 975,265.74 Amounts Due to Insiders* Other Postpetition Liabilities (attach schedule) 371,982.74 TOTAL POSTPETITION LIABILITIES 1,492,368.93 LIABILITIES SUBJECT TO COMPROMISE (PrePetition) Secured Debt 6,875,214.81 Priority Debt 421,507.93 818,388.10 Unsecured Debt 82,930,684.06 146,775,990.41 TOTAL PREPETITION LIABILITIES 83,352,191.99 154,469,593.32 TOTAL LIABILITIES 84,844,560.92 154,469,593.32 OWNER'S EQUITY Capital Stock 86,275,212.79 86,275,212.79 Additional PaidIn Capital 22,608,743.15 22,608,743.15 Partners' Capital Account Owner's Equity Account Retained Earnings PrePetition (228,490,538.69) (228,490,538.69) Retained Earnings Postpetition 54,740,303.36 Adjustments to Owner's Equity (attach schedule) Postpetition Contributions (Distributions) (Draws) (attach schedule) NET OWNER'S EQUITY (64,866,279.39) (119,606,582.75) TOTAL LIABILITIES AND NET OWNER'S EQUITY 19,978,281.53 34,863,010.57 *"Insider" is defined in 11 U.S.C. Section 101(31). [1] Debtors do not keep separate books and records for Arctic Sentinel, Inc., Arctic Sentinel Holdings, Inc., Arctic Sentinel Direct, Inc. and Sentinel Arctic, Inc. As such, the schedule represents the consolidated records.
Case 1512465CSS Doc 736 Filed 09/06/16 Page 8 of 12 In re Arctic Sentinel Direct, Inc. [f/k/a Fuhu Direct, Inc.] Case No. 1512504 Debtor Reporting Period.: July 31, 2016 CONSOLIDATED BALANCE SHEET continuation sheet [1] Other Current Assets N/A BOOK VALUE AT END OF CURRENT REPORTING MONTH BOOK VALUE ON PETITION DATE Other Assets D&H Receivable $ 7,666,921.42 $ 7,666,921.42 Net Investment in Taiwan 644,457.19 Total Other Assets $ 7,666,921.42 $ 8,311,378.61 Other Postpetition Liabilities PostSale Buyer Customer Payments $ 321,117.25 $ Accrued Royalties 26,368.53 Customer Returns 23,701.96 Recycling Fees 795.00 Total Other Postpetition Liabilities $ 371,982.74 $ Adjustments to Owner Equity N/A Postpetition Contributions (Distributions) (Draws) N/A [1] Debtors do not keep separate books and records for Arctic Sentinel, Inc., Arctic Sentinel Holdings, Inc., Arctic Sentinel Direct, Inc. and Sentinel Arctic, Inc. As such, the schedule represents the consolidated records.
Case 1512465CSS Doc 736 Filed 09/06/16 Page 9 of 12 In re Arctic Sentinel Direct, Inc. [f/k/a Fuhu Direct, Inc.] Case No. 1512504 Debtor Reporting Period.: July 31, 2016 STATUS OF POSTPETITION TAXES [1] The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero. Attach photocopies of IRS Form 6123 or payment receipt to verify payment or deposit of federal payroll taxes. Attach photocopies of any tax returns filed during the reporting period. Beginning Amount Ending Tax Withheld or Amount Date Check No. Tax Liability Accrued Paid Paid or EFT Liability Federal Withholding $ 1,130.96 $ 2,261.92 $ (2,261.92) $ 1,130.96 FICAEmployee 823.84 1,647.69 (1,647.69) 823.84 FICAEmployer 823.84 1,647.68 (1,647.68) 823.84 Unemployment Income Other: Total Federal Taxes $ 2,778.65 $ 5,557.29 $ (5,557.29) $ 2,778.64 State and Local Withholding $ 400.10 $ 800.20 $ (800.20) $ 400.10 Sales 28,904.35 28,904.35 Excise Unemployment Real Property Personal Property Other: Disability 96.93 193.86 (193.86) 96.93 Other: Miscellaneous State Taxes Total State and Local 29,401.38 994.06 (994.06) 29,401.38 Total Taxes $ 32,180.03 $ 6,551.35 $ (6,551.35) $ 32,180.02 SUMMARY OF UNPAID POSTPETITION DEBTS [1] Attach aged listing of accounts payable. Number of Days Past Due Current 030 3160 6190 Over 90 Total Accounts Payable (see exhibit) $ 5,821.54 $ $ $ $ 98,132.26 $ 103,953.80 Wages Payable 8,986.63 8,986.63 Taxes Payable 32,180.02 32,180.02 Rent/LeasesBuilding Rent/LeasesEquipment Secured Debt/Adequate Protection Payments Professional Fees 975,265.74 975,265.74 Amounts Due to Insiders* Other: Mattel Restricted Funds 321,117.25 321,117.25 Other: Accrued Royalties 26,368.53 26,368.53 Other: Customer Returns 23,701.96 23,701.96 Other: Recycling Fees 795.00 795.00 Total Postpetition Debts $ 1,394,236.67 $ $ $ $ 98,132.26 $ 1,492,368.93 Explain how and when the Debtor intends to pay any pastdue postpetition debts. Debtor intends to pay pastdue postpetition debts from sale proceeds to the extent such expenses are valid. *"Insider" is defined in 11 U.S.C. Section 101(31). [1] Debtors do not keep separate books and records for Arctic Sentinel, Inc., Arctic Sentinel Holdings, Inc., Arctic Sentinel Direct, Inc. and Sentinel Arctic, Inc. As such, the schedule represents the consolidated records.
Case 1512465CSS Doc 736 Filed 09/06/16 Page 10 of 12 In re Arctic Sentinel Direct, Inc. [f/k/a Fuhu Direct, Inc.] Debtor ACCOUNTS RECEIVABLE RECONCILIATION AND AGING [1] Accounts Receivable Reconciliation Amount Total Accounts Receivable at the beginning of the reporting period $ + Amounts billed during the period Amounts collected during the period Chargebacks and credits Total Accounts Receivable at the end of the reporting period $ Accounts Receivable Aging Amount 0 30 days old $ 31 60 days old 61 90 days old 91+ days old Total Accounts Receivable $ Amount considered uncollectible (Bad Debt) Accounts Receivable (Net) $ DEBTOR QUESTIONNAIRE Must be completed each month Yes No 1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below. 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. 3. Have all postpetition tax returns been timely filed? If no, provide an explanation below. 4. Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below. 5. Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 40013. x x x x [2] x [1] Debtors do not keep separate books and records for Arctic Sentinel, Inc., Arctic Sentinel Holdings, Inc., Arctic Sentinel Direct, Inc. and Sentinel Arctic, Inc. As such, the schedule represents the consolidated records. [2] Preparation of postpetition tax returns are in progress.
PostPetition Accounts Payable Aging As of 7/31/2016 Case 1512465CSS Doc 736 Filed 09/06/16 Page 11 of 12 Case Number: 1512504 Reporting Period: July 31, 2016 # Vendor Current 030 3160 6190 91+ Total 1 Tiarna Real Estate Services, Inc 80,080.06 80,080.06 2 DENTONS 9,916.00 9,916.00 3 Oracle 5,821.54 5,821.54 4 CALDERON & DE LA SIERRA 4,275.00 4,275.00 5 Jassy Vick Carolan LLP 2,490.00 2,490.00 6 Exactor 854.00 854.00 7 Electronic Recyclers International, Inc. 448.32 448.32 8 Treasurer, State of Vermont 68.88 68.88 Total $ 5,821.54 $ $ $ $ 98,132.26 $ 103,953.80 [1] Debtors do not keep separate books and records for Arctic Sentinel, Inc., Arctic Sentinel Holdings, Inc., Arctic Sentinel Direct, Inc. and Sentinel Arctic, Inc. As such, the schedule represents the consolidated records.
Case 1512465CSS Doc 736 Filed 09/06/16 Page 12 of 12 Arctic Sentinel Direct, Inc. [f/k/a Fuhu Direct, Inc.] Explanation for NonFiling of Required Documents Case Number: 1512504 Reporting Period: July 31, 2016 Form # 1 Explanation This Debtor is an inactive entity without bank accounts.