UNITED STATES BANKRUPTCY COURT
 
 
 
Southern District of New York
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In re: Fusion Connect, Inc. et al.
 
Case No.
19-11811 (SMB) (Jointly Administered)
 
 
 
 Debtors
 
Judge:
Hon. Stuart M. Bernstein
 
 
 
 
 
 
For the Period from:
June 3, 2019 to June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Tax I.D. #
58-2342021
 
 
 
 
 
 
 
 
 
 
 
 
DEBTORS' MONTHLY OPERATING REPORT SUMMARY
 
 
 
 
 
 
 
 
 
 
 
REQUIRED DOCUMENTS
Form No.
Document Attached
Explanation Attached
Affidavit/Supplement Attached
 
 
 
 
 
 
 
 
 
 
 
Schedule of Cash Receipts and Disbursements
MOR-1
X
 
 
 
 
 
Bank Summary & Reconciliation (or copies of debtors' bank reconciliations)
MOR-1a
X
 
 
 
 
 
Bank Account Activity
MOR-1b
X
 
 
 
 
 
Copies of bank statements
 
 
 
 
 
 
 
Cash disbursements journals
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Statement
MOR-2
X
 
 
 
 
 
Balance Sheet
MOR-3
X
 
 
 
 
 
 
 
 
 
 
 
 
 
Status of Post-petition Taxes
MOR-4
X
 
 
 
 
 
Copies of IRS Form 6123 or payment receipt
 
 
 
 
 
 
 
Copies of tax returns filed during reporting period
 
 
 
 
 
 
 
Summary of Unpaid Post-Petition Debts
MOR-4
X
 
 
 
 
 
 
 
 
 
 
 
 
 
Monthly Accounts Receivable Reconciliation and Aging
MOR-5
X
 
 
 
 
 
Summary of Officer & Insider Compensation, Personnel And Insurance
MOR-6
X
 
 
 
 
 
 
 
 
 
 
 
 
 
Schedule of Estate Professionals
MOR-7
X
 
 
 
 
 
Calculation of U.S. Trustee Quarterly Fee
MOR-8
X
 
 
 
 
 
 
 
 
 
 
 
 
 
Debtors Questionnaire
MOR-9
X
 
 
 
 
 
 
 
 
 
 
 
 
 
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
/s/ Keith Soldan
 
07/22/19
 
 
 
 
 
Keith Soldan, Chief Financial Officer
 
Date
 
 
 
 
 
 
 
 
 
 
 
 
 
210 Interstate North Parkway, Suite 300, Atlanta, GA 30339
 
07/22/19
 
 
 
 
 
Debtors' Address
 
Date
 
 
 
 
 
 
 
 
 
 
 
 
2
1
 
 
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
---------------------------------------------------------------
X
 
 
:
 
In re
:
Chapter 11
 
:
 
FUSION CONNECT, INC., et al.,
:
Case No. 19-11811 (SMB)
 
:
 
Debtors.1
:
(Jointly Administered)
 
:
 
---------------------------------------------------------------
X
 
 
GLOBAL NOTES AND STATEMENTS OF LIMITATIONS AND DISCLAIMERS REGARDING THE DEBTORS’ MONTHLY OPERATING REPORTS
 
On June 3, 2019 (the “Commencement Date”), Fusion Connect, Inc. and its U.S. subsidiaries, as debtors and debtors in possession (collectively, the “Debtors” or the “Company”), each commenced a voluntary case under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). The Debtors are authorized to operate their businesses and manage their properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. On June 3, 2019, the Bankruptcy Court entered an order authorizing the joint administration of these cases pursuant to Bankruptcy Rule 1015(b) (ECF No. 21). On June 18, 2019, the United States Trustee for the Southern District of New York (the “U.S. Trustee”) appointed an official committee of unsecured creditors pursuant to section 1102(a)(1) of the Bankruptcy Code (the “Creditors’ Committee”) (ECF No. 98).
 
The Debtors are filing this consolidated monthly operating report (the “MOR”) solely for purposes of complying with the monthly operating requirements applicable in the Debtors’ chapter 11 cases. The MOR should not be relied upon by any persons for information relating to current or future financial conditions, events, or performance of any of the Debtors or their affiliates.
 
The following notes, statements, and limitations should be referred to, and referenced in connection with, any review of the MOR.
 

1 The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, as applicable, are: Fusion Connect, Inc. (2021); Fusion BCHI Acquisition LLC (7402); Fusion NBS Acquisition Corp. (4332); Fusion LLC (0994); Fusion MPHC Holding Corporation (3066); Fusion MPHC Group, Inc. (1529); Fusion Cloud Company LLC (5568); Fusion Cloud Services, LLC (3012); Fusion CB Holdings, Inc. (6526); Fusion Communications, LLC (8337); Fusion Telecom, LLC (0894); Fusion Texas Holdings, Inc. (2636); Fusion Telecom of Kansas, LLC (0075); Fusion Telecom of Oklahoma, LLC (3260); Fusion Telecom of Missouri, LLC (5329); Fusion Telecom of Texas Ltd., L.L.P. (8531); Bircan Holdings, LLC (2819); Fusion Management Services LLC (5597); and Fusion PM Holdings, Inc. (2478). The principal executive office of the Debtors is located at 210 Interstate North Parkway, Suite 300, Atlanta, Georgia 30339.
    
 
2
 
 
1.
Basis of Presentation. For financial reporting purposes, the Debtors generally prepare consolidated financial statements, which include financial information for the Debtors and certain non-debtor affiliates. The financial statements and information contained herein are unaudited and reflect the Debtors’ reasonable efforts to report certain financial information of each Debtor on a stand-alone, unconsolidated basis. The Debtors are maintaining their books and records in accordance with generally accepted accounting principles in the United States (“GAAP”) and the information furnished in this MOR uses the Debtors’ normal accrual method of accounting. In preparing the MOR, the Debtors relied on financial data derived from their books and records that was available at the time of preparation. Subsequent information or discovery may result in material changes to the MOR and errors or omissions may exist. Notwithstanding any such discovery, new information, or errors or omissions, the Debtors do not undertake any obligation or commitment to update the MOR.
 
2.
Reporting Period. Unless otherwise noted herein, the MOR generally reflects the Debtors’ books and records and financial activity occurring during the applicable reporting period. Except as otherwise noted, no adjustments have been made for activity occurring after the close of the reporting period.
 
3.
Consolidated Entity Accounts Payable and Disbursement Systems. As described in the Cash Management Motion,2 the Debtors utilize an integrated, centralized cash management system in the ordinary course of business to collect, concentrate, and disburse funds generated by their operations (the “Cash Management System”). The Debtors maintain a consolidated accounts payable and disbursements system to pay operating and administrative expenses through various disbursement accounts.
 
In the ordinary course of business, the Debtors and certain non-debtor affiliates engage in intercompany transactions (the “Intercompany Transactions”), which result in intercompany receivables and payables (the “Intercompany Claims”). As set forth more fully in the Cash Management Motion, the primary Intercompany Transactions giving rise to Intercompany Claims are in connection with certain shared services, interest expense allocation, and operational support. Historically, Intercompany Claims are not settled by actual transfers of cash among the Debtors. Instead, the Debtors track all Intercompany Transactions in their accounting system, which concurrently are recorded on the applicable Debtor’s balance sheets. Because the Debtors generally track and report their financial information on a consolidated basis some errors may exist and adjustments in future reporting may be necessary.
 
4.
Accuracy. Although the Debtors have made good faith reasonable efforts to file a complete and accurate MOR, inadvertent errors or omissions may exist. The Debtors reserve all rights to amend and/or supplement the Schedules and Statements as is necessary or appropriate. The financial information disclosed herein was not prepared in accordance with federal or state securities laws or other applicable non-bankruptcy law or in lieu of complying with any periodic reporting requirements thereunder. Persons and entities trading in or otherwise purchasing, selling, or transferring the claims against or equity interests in the Debtors should evaluate this financial information in light of the purposes for which it was prepared. The Debtors are not liable for and undertake no responsibility to indicate variations from securities laws or for any evaluations of the Debtors based on this financial information or any other information.
 

2 
The “Cash Management Motion” means the Motion of Debtors for (I) Authorization to (A) Continue Using Existing Cash Management System, Bank Accounts, and Business Forms, (B) Implement Changes to the Cash Management System in the Ordinary Course of Business, (C) Continue Intercompany Transactions, (D) Provide Administrative Expense Priority for Postpetition Intercompany Claims, (E) Extend Time to Comply with, or Seek Waiver of, 11 U.S.C. § 345(b), and (II) Related Relief (ECF No. 4).
  
 
 
3
 

5.
Payment of Prepetition Claims Pursuant to First Day Orders. Following the Commencement Date, the Bankruptcy Court entered various orders (collectively, the “First Day Orders”) authorizing the Debtors to, among other things, pay certain prepetition: (a) service fees and charges assessed by the Debtors’ banks and debit and credit card companies; (b) insurance and surety bond obligations; (c) obligations to critical vendors; (d) customer program obligations; (e) employee wages, salaries, and related items (including, but not limited to, employee benefit programs and independent contractor obligations); and (f) taxes and assessments. To the extent any adjustments are necessary for any payments made on account of such claims following the commencement of these chapter 11 cases pursuant to the authority granted to the Debtors by the Bankruptcy Court under the First Day Orders, such adjustments have been included in the MOR unless otherwise noted.
 
6.
Debtor in Possession Financing. Pursuant to the Final Order (I) Authorizing the Debtors to (A) Obtain Postpetition Financing, (B) Use Cash Collateral, (II) Granting Liens and Providing Superpriority Administrative Expense Status, (III) Granting Adequate Protection to the Prepetition Secured Parties, (IV) Modifying the Automatic Stay, and (V) Granting Related Relief (ECF No. 160) (the “Final DIP Order”), all principal amounts outstanding under the Debtors’ Prepetition Super Senior Credit Facility (as defined in the Final DIP Order) were refinanced dollar-for-dollar and discharged by the DIP Roll-Up Loans (as defined in the Final DIP Order), subject to customary challenge periods.
 
7.
Liabilities Subject to Compromise. The Debtors have not finalized their analysis of liabilities that may be subject to compromise, and hereby expressly reserve all rights to reclassify, estimate, and/or change any amounts to denote such amounts as liabilities subject to compromise in the future.
 
8.
Debtors’ Reservation of Rights. The Debtors reserve all rights to amend or supplement the MOR in all respects, as may be necessary or appropriate. Nothing contained in this MOR shall constitute a waiver of any of the Debtors’ rights or an admission with respect to their chapter 11 cases.
 
 
 
4
 
 
 
In re: Fusion Connect, Inc. et al.
 
 
 
 
 
 
 
 
 
Case No.: 19-11811 (SMB) (Jointly Administered)
 
 
 
 
 
 
 
 
 
 
 
 
Period from: June 3, 2019 to June 30, 2019
 
 
MOR-1 – Schedule of Cash Receipts and Disbursements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Schedule of Receipts and Disbursements
 
19-11811
19-11814
19-11815
19-11828
19-11830
 
 
 
 
 
 
Debtor Entity ($USD Actual) (1)
 
Fusion Connect, Inc.
Fusion Cloud Services, LLC
Fusion Communications, LLC
Fusion LLC
Fusion Cloud Company LLC
 
Current Period
Case-to-Date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash – Beginning of Month (2)
 
 $ 2,750,881
 $ 15,536
 $ 15,661
 $ 360,471
 $ 192,948
 
 $ 3,335,496
 $ 3,335,496
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales Receipts
 
               19,383
       22,693,692
               69,195
         8,638,997
         5,130,964
 
       36,552,230
       36,552,230
 
 
 
Other Receipts
 
               11,983
                        -
                        -
                        -
                        -
 
               11,983
               11,983
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Receipts
 
               31,366
       22,693,692
               69,195
         8,638,997
         5,130,964
 
       36,564,213
       36,564,213
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Funds Available for Operations
 
 $ 2,782,247
 $ 22,709,227
 $ 84,856
 $ 8,999,468
 $ 5,323,912
 
 $ 39,899,710
 $ 39,899,710
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payroll & Labor Related
 
        (4,991,810)
                         –
                         –
                         –
                         –
 
        (4,991,810)
        (4,991,810)
 
 
 
Payroll Taxes
 
        (1,434,446)
                         –
                         –
                         –
                         –
 
        (1,434,446)
        (1,434,446)
 
 
 
Sales, Use & Other Taxes
 
           (837,177)
                         –
                         –
                         –
                         –
 
           (837,177)
           (837,177)
 
 
 
Telco
 
           (348,385)
                         –
                         –
                         –
                         –
 
           (348,385)
           (348,385)
 
 
 
OTM
 
        (2,648,456)
                         –
                         –
                         –
                         –
 
        (2,648,456)
        (2,648,456)
 
 
 
Rent
 
           (482,435)
                         –
                         –
                         –
                         –
 
           (482,435)
           (482,435)
 
 
 
Capital Lease
 
           (205,990)
             (66,412)
                         –
                         –
                         –
 
           (272,402)
           (272,402)
 
 
 
Information Technology
 
           (261,418)
                         –
                         –
                         –
                         –
 
           (261,418)
           (261,418)
 
 
 
CC Payments & Fees
 
           (178,259)
                         –
                         –
             (24,267)
                         –
 
           (202,526)
           (202,526)
 
 
 
Ordinary Course Professionals
 
             (89,233)
                         –
                         –
                         –
                         –
 
             (89,233)
             (89,233)
 
 
 
General & Administrative
 
             (35,336)
             (60,183)
                (4,043)
                   (301)
                (3,790)
 
           (103,654)
           (103,654)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Operating Disbursements
 
      (11,512,943)
           (126,595)
                (4,043)
             (24,569)
                (3,790)
 
      (11,671,941)
      (11,671,941)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Operating Change
 
        (8,730,697)
       22,582,632
               80,813
         8,974,899
         5,320,121
 
       28,227,769
       28,227,769
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring Professional Fees
 
             (45,023)
                         –
                         –
                         –
                         –
 
             (45,023)
             (45,023)
 
 
 
Interest and Fees
 
           (378,780)
                         –
                         –
                         –
                         –
 
           (378,780)
           (378,780)
 
 
 
DIP Fees
 
        (1,975,000)
                         –
                         –
                         –
                         –
 
        (1,975,000)
        (1,975,000)
 
 
 
Critical Vendor / 503(b)(9)
 
                         –
                         –
                         –
                         –
                         –
 
                         –
                         –
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Non-Operating & Restructuring Disbursements
        (2,398,804)
                         –
                         –
                         –
                         –
 
        (2,398,804)
        (2,398,804)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Disbursements
 
 $ (13,911,747)
 $ (126,595)
 $ (4,043)
 $ (24,569)
 $ (3,790)
 
 $ (14,070,744)
 $ (14,070,744)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intercompany
 
       27,163,673
      (22,319,221)
                       (0)
        (1,483,909)
        (3,360,543)
 
                         –
                         –
 
 
 
Revolver Borrowing/(Repayment)
 
       20,000,000
                         –
                         –
                         –
                         –
 
       20,000,000
       20,000,000
 
 
 
Customer Deposits Returned
 
                         –
           (115,159)
                         –
             (13,487)
             (13,158)
 
           (141,805)
           (141,805)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other Disbursements/Adjustments
       47,163,673
      (22,434,380)
                       (0)
        (1,497,397)
        (3,373,701)
 
       19,858,195
       19,858,195
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance
 
 $ 36,034,172
 $ 148,253
 $ 80,813
 $ 7,477,502
 $ 1,946,420
 
 $ 45,687,161
 $ 45,687,161
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Debtor entities not included in the above schedule do not maintain bank accounts
 
 
 
 
 
 
 
 
(2) Schedule of receipts and disbursements includes Debtor entities and does not include cash or activity related to the Debtor's Canadian subsidiaries
 
 
 
 
5
 
 
In re: Fusion Connect, Inc. et al.
 
 
 
 
 
 
 
 
 
Case No.: 19-11811 (SMB) (Jointly Administered)
 
 
 
 
 
 
 
 
 
 
 
Period from: June 3, 2019 to June 30, 2019
 
MOR-1a – Bank Summary & Reconciliation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Monthly Bank Summary
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Company
Case #
Bank
Account #
Purpose of Account
 
Beginning Balance
Ending Balance
Change in Cash
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fusion Connect, Inc.
19-11811
East West Bank
8715
Not in use
 
 $ -
 $ -
 $ -
 
 
 
Fusion Connect, Inc.
19-11811
East West Bank
5634
Collections
 
               22,918
               21,409
                (1,509)
 
 
 
Fusion Connect, Inc.
19-11811
Union Bank
0333
Concentration
 
         2,727,963
       17,987,763
       15,259,801
 
 
 
Fusion Connect, Inc.
19-11811
Union Bank
0317
Disbursement
 
                        -
                        -
                        -
 
 
 
Fusion Connect, Inc.
19-11811
Union Bank
0325
Disbursement
 
                        -
                        -
                        -
 
 
 
Fusion Connect, Inc.
19-11811
Union Bank
0218
DDA
 
                        -
                        -
                        -
 
 
 
Fusion Connect, Inc.
19-11811
Union Bank
0655
DIP Account
 
                        -
       18,025,000
       18,025,000
 
 
 
Fusion Cloud Services, LLC
19-11814
Bank of America
2842
Collections
 
                    475
             148,253
             147,778
 
 
 
Fusion Cloud Services, LLC
19-11814
PNC
1332
Collections
 
               15,061
                        -
             (15,061)
 (1)
 
 
Fusion Cloud Services, LLC
19-11814
Union Bank
0309
Collections
 
                        -
                        -
                        -
 
 
 
Fusion Communications, LLC
19-11815
Bank of America
5370
Collections
 
                        -
                        -
                        -
 
 
 
Fusion Communications, LLC
19-11815
Bank of America
1912
Collections
 
                    552
               68,212
               67,660
 
 
 
Fusion Communications, LLC
19-11815
Bank of America
0808
Not in use
 
                        -
                        -
                        -
 
 
 
Fusion Communications, LLC
19-11815
Bank of America
2846
Collections
 
                 9,464
                 5,000
                (4,464)
 
 
 
Fusion Communications, LLC
19-11815
Bank of America
3257
Not in use
 
                 5,000
                 5,000
                        -
 
 
 
Fusion Communications, LLC
19-11815
US Bank
8587
Disbursement
 
                       35
                    215
                    180
 
 
 
Fusion Communications, LLC
19-11815
US Bank
6283
Collections
 
                    611
                 2,386
                 1,775
 
 
 
Fusion LLC
19-11828
East West Bank
5824
Disbursement
 
             360,471
         7,477,502
         7,117,032
 
 
 
Fusion LLC
19-11828
Union Bank
0761
Collections
 
                        -
                        -
                        -
 
 
 
Fusion Cloud Company LLC
19-11830
East West Bank
1353
Concentration
 
             138,579
         1,892,051
         1,753,472
 
 
 
Fusion Cloud Company LLC
19-11830
East West Bank
8201
Disbursement
 
               52,308
               54,369
                 2,062
 
 
 
Fusion Cloud Company LLC
19-11830
East West Bank
8277
Collections
 
                        -
                        -
                        -
 
 
 
Fusion Cloud Company LLC
19-11830
East West Bank
3995
Not in use
 
                 2,062
                        -
                (2,062)
 
 
 
Fusion Cloud Company LLC
19-11830
Union Bank
0663
Collections
 
                        -
                        -
                        -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 $ 3,335,496
 $ 45,687,161
 $ 42,351,664
 
 
 
(1) PNC account closed 07/09/19
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6
 
 
In re: Fusion Connect, Inc. et al.
 
 
 
 
 
 
 
 
 
Case No.: 19-11811 (SMB) (Jointly Administered)
 
 
 
 
 
 
 
 
 
 
 
Period from: June 3, 2019 to June 30, 2019
 
MOR-1a – Bank Summary & Reconciliation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
Monthly Book to Bank Reconciliation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Company
Case #
Bank
Account #
Purpose of Account
 
Bank Balance
Book Balance
Variance (1)
Reconciled
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fusion Connect, Inc.
19-11811
East West Bank
8715
Not in use
 
 $ -
 $ -
 $ -
 Yes
 
 
Fusion Connect, Inc.
19-11811
East West Bank
5634
Collections
 
               21,409
               21,370
                     (39)
 Yes
 
 
Fusion Connect, Inc.
19-11811
Union Bank
0333
Concentration
 
       17,987,763
       17,987,763
                        -
 Yes
 
 
Fusion Connect, Inc.
19-11811
Union Bank
0317
Disbursement
 
                        -
                        -
                        -
 Yes
 
 
Fusion Connect, Inc.
19-11811
Union Bank
0325
Disbursement
 
                        -
           (380,880)
           (380,880)
 Yes
 
 
Fusion Connect, Inc.
19-11811
Union Bank
0218
DDA
 
                        -
                        -
                        -
 Yes
 
 
Fusion Connect, Inc.
19-11811
Union Bank
0655
DIP Account
 
       18,025,000
       18,025,000
                        -
 Yes
 
 
Fusion Cloud Services, LLC
19-11814
Bank of America
2842
Collections
 
             148,253
             148,253
                        -
 Yes
 
 
Fusion Cloud Services, LLC
19-11814
PNC
1332
Collections
 
                        -
                        -
                        -
 Yes
 
 
Fusion Cloud Services, LLC
19-11814
Union Bank
0309
Collections
 
                        -
                        -
                        -
 Yes
 
 
Fusion Communications, LLC
19-11815
Bank of America
5370
Collections
 
                        -
                        -
                        -
 Yes
 
 
Fusion Communications, LLC
19-11815
Bank of America
1912
Collections
 
               68,212
               68,212
                        -
 Yes
 
 
Fusion Communications, LLC
19-11815
Bank of America
0808
Not in use
 
                        -
                        -
                        -
 Yes
 
 
Fusion Communications, LLC
19-11815
Bank of America
2846
Collections
 
                 5,000
                 5,000
                        -
 Yes
 
 
Fusion Communications, LLC
19-11815
Bank of America
3257
Not in use
 
                 5,000
                 5,000
                        -
 Yes
 
 
Fusion Communications, LLC
19-11815
US Bank
8587
Disbursement
 
                    215
                    215
                        -
 Yes
 
 
Fusion Communications, LLC
19-11815
US Bank
6283
Collections
 
                 2,386
                 2,386
                        -
 Yes
 
 
Fusion LLC
19-11828
East West Bank
5824
Disbursement
 
         7,477,502
         7,315,904
           (161,599)
 Yes
 
 
Fusion LLC
19-11828
Union Bank
0761
Collections
 
                        -
             (71,730)
             (71,730)
 Yes
 
 
Fusion Cloud Company LLC
19-11830
East West Bank
1353
Concentration
 
         1,892,051
         1,845,824
             (46,227)
 Yes
 
 
Fusion Cloud Company LLC
19-11830
East West Bank
8201
Disbursement
 
               54,369
               46,927
                (7,442)
 Yes
 
 
Fusion Cloud Company LLC
19-11830
East West Bank
8277
Collections
 
                        -
                        -
                        -
 Yes
 
 
Fusion Cloud Company LLC
19-11830
East West Bank
3995
Not in use
 
                        -
                        -
                        -
 Yes
 
 
Fusion Cloud Company LLC
19-11830
Union Bank
0663
Collections
 
                        -
               84,916
               84,916
 Yes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 $ 45,687,161
 $ 45,104,159
 $ (583,002)
 
 
 
(1) Differences between bank balances and ledger balances are due to activity such as (i) outstanding checks not yet funded as of period-end, and (ii) ledger deposits-in-transit as of period-end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7
 
 
 
In re: Fusion Connect, Inc. et al.
 
 
 
 
 
 
 
Case No.: 19-11811 (SMB) (Jointly Administered)
 
 
 
 
 
 
 
 
 
 
Period from: June 3, 2019 to June 30, 2019
 
 
 
 
MOR-1b – Bank Account Activity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
19-11811
19-11811
19-11811
19-11811
19-11811
19-11811
19-11811
 
 
Account #
 
8715
5634
0333
0317
0325
0218
0655
 
 
Bank
 
East West Bank
East West Bank
Union Bank
Union Bank
Union Bank
Union Bank
Union Bank
 
 
Debtor Entity ($USD Actual) (1)
 
Fusion Connect, Inc.
Fusion Connect, Inc.
Fusion Connect, Inc.
Fusion Connect, Inc.
Fusion Connect, Inc.
Fusion Connect, Inc.
Fusion Connect, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash – Beginning of Month (2)
 
 $ -
 $ 22,918
 $ 2,727,963
 $ -
 $ -
 $ -
 $ -
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales Receipts
 
                               -
                     10,333
                                 -
                             10
                        9,040
                              -
                                                                                                -
 
 
Other Receipts
 
                               -
                               -
                                 -
                               -
                     11,983
                              -
                                                                                                -
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Receipts
 
                                –
                     10,333
                                  –
                             10
                     21,023
                               –
                                                                                                  –
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Funds Available for Operations
 
 $ –
 $ 33,251
 $ 2,727,963
 $ 10
 $ 21,023
 $ –
 $ –
 
 
 
 
 
 
 
 
 
 
 
 
 
Payroll & Labor Related
 
                                –
                                –
                                  –
              (3,263,257)
              (1,728,553)
                               –
                                                                                                  –
 
 
Payroll Taxes
 
                                –
                                –
                                  –
              (1,434,446)
                                –
                               –
                                                                                                  –
 
 
Sales, Use & Other Taxes
 
                                –
                                –
                                  –
                                –
                 (837,177)
                               –
                                                                                                  –
 
 
Telco
 
                                –
                                –
                                  –
                                –
                 (348,385)
                               –
                                                                                                  –
 
 
OTM
 
                                –
                                –
                                  –
                                –
              (2,648,456)
                               –
                                                                                                  –
 
 
Rent
 
                                –
                                –
                                  –
                                –
                 (482,435)
                               –
                                                                                                  –
 
 
Capital Lease
 
                                –
                                –
                                  –
                                –
                 (205,990)
                               –
                                                                                                  –
 
 
Information Technology
 
                                –
                                –
                                  –
                                –
                 (261,418)
                               –
                                                                                                  –
 
 
CC Payments & Fees
 
                                –
                                –
                                  –
                                –
                 (178,259)
                               –
                                                                                                  –
 
 
Ordinary Course Professionals
 
                                –
                                –
                                  –
                                –
                    (89,233)
                               –
                                                                                                  –
 
 
General & Administrative
 
                                –
                    (11,842)
                                  –
                                –
                    (23,494)
                               –
                                                                                                  –
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Operating Disbursements
 
                                –
                    (11,842)
                                  –
              (4,697,703)
              (6,803,398)
                               –
                                                                                                  –
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Operating Change
 
                                –
                     21,409
                  2,727,963
              (4,697,693)
              (6,782,375)
                               –
                                                                                                  –
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring Professional Fees
 
                                –
                                –
                                  –
                                –
                    (45,023)
                               –
                                                                                                  –
 
 
Interest and Fees
 
                                –
                                –
                                  –
                                –
                 (378,780)
                               –
                                                                                                  –
 
 
DIP Fees
 
                                –
                                –
                (1,975,000)
                                –
                                –
                               –
                                                                                                  –
 
 
Critical Vendor / 503(b)(9)
 
                                –
                                –
                                  –
                                –
                                –
                               –
                                                                                                  –
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Non-Operating & Restructuring Disbursements
 
                                –
                                –
                (1,975,000)
                                –
                 (423,804)
                               –
                                                                                                  –
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Disbursements
 
 $ -
 $ (11,842)
 $ (1,975,000)
 $ (4,697,703)
 $ (7,227,202)
 $ -
 $ -
 
 
 
 
 
 
 
 
 
 
 
 
 
Intercompany
 
                                –
                                –
                (2,765,199)
                4,697,693
                7,206,179
                               –
                                                                               18,025,000
 
 
Revolver Borrowing/(Repayment)
 
                                –
                                –
                20,000,000
                                –
                                –
                               –
                                                                                                  –
 
 
Customer Deposits Returned
 
                                –
                                –
                                  –
                                –
                                –
                               –
                                                                                                  –
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other Disbursements/Adjustments
 
                               -
                               -
                17,234,801
                4,697,693
                7,206,179
                              -
                                                                               18,025,000
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance
 
 $ -
 $ 21,409
 $ 17,987,763
 $ -
 $ -
 $ -
 $ 18,025,000
 
 
 
 
 
 
 
 
 
 
 
 
(1) Debtor entities not included in the above do not maintain bank accounts
(2) Schedule of receipts and disbursements includes Debtor entities and does not include cash or activity related to the Debtor's Canadian subsidiaries
 
 
8
 
 
 
In re: Fusion Connect, Inc. et al.
 
 
 
 
 
 
 
Case No.: 19-11811 (SMB) (Jointly Administered)
 
 
 
 
 
 
 
 
 
 
Period from: June 3, 2019 to June 30, 2019
 
 
 
 
MOR-1b – Bank Account Activity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
19-11814
19-11814
19-11814
19-11815
19-11815
19-11815
19-11815
 
 
Account #
 
2842
1332
0309
5370
1912
0808
2846
 
 
Bank
 
Bank of America
PNC
Union Bank
Bank of America
Bank of America
Bank of America
Bank of America
 
 
Debtor Entity ($USD Actual) (1)
 
Fusion Cloud Services, LLC
Fusion Cloud Services, LLC
Fusion Cloud Services, LLC
Fusion Communications, LLC
Fusion Communications, LLC
Fusion Communications, LLC
Fusion Communications, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash – Beginning of Month (2)
 
 $ 475
 $ 15,061
 $ -
 $ -
 $ 552
 $ -
 $ 9,464
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales Receipts
 
                   148,532
                   117,513
             22,427,647
                           220
                        1,332
                               -
                     63,491
 
 
Other Receipts
 
                               -
                               -
                               -
                               -
                               -
                               -
                               -
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Receipts
 
                   148,532
                   117,513
             22,427,647
                           220
                        1,332
                                –
                     63,491
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Funds Available for Operations
 
 $ 149,007
 $ 132,574
 $ 22,427,647
 $ 220
 $ 1,884
 $ –
 $ 72,955
 
 
 
 
 
 
 
 
 
 
 
 
 
Payroll & Labor Related
 
                                –
                                –
                                –
                                –
                                –
                                –
                                –
 
 
Payroll Taxes
 
                                –
                                –
                                –
                                –
                                –
                                –
                                –
 
 
Sales, Use & Other Taxes
 
                                –
                                –
                                –
                                –
                                –
                                –
                                –
 
 
Telco
 
                                –
                                –
                                –
                                –
                                –
                                –
                                –
 
 
OTM
 
                                –
                                –
                                –
                                –
                                –
                                –
                                –
 
 
Rent
 
                                –
                                –
                                –
                                –
                                –
                                –
                                –
 
 
Capital Lease
 
                                –
                                –
                    (66,412)
                                –
                                –
                                –
                                –
 
 
Information Technology
 
                                –
                                –
                                –
                                –
                                –
                                –
                                –
 
 
CC Payments & Fees
 
                                –
                                –
                                –
                                –
                                –
                                –
                                –
 
 
Ordinary Course Professionals
 
                                –
                                –
                                –
                                –
                                –
                                –
                                –
 
 
General & Administrative
 
                         (754)
                         (958)
                    (58,471)
                                –
                      (1,762)
                            (85)
                                –
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Operating Disbursements
 
                         (754)
                         (958)
                 (124,883)
                                –
                      (1,762)
                            (85)
                                –
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Operating Change
 
                   148,253
                   131,616
             22,302,764
                           220
                           123
                            (85)
                     72,955
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring Professional Fees
 
                                –
                                –
                                –
                                –
                                –
                                –
                                –
 
 
Interest and Fees
 
                                –
                                –
                                –
                                –
                                –
                                –
                                –
 
 
DIP Fees
 
                                –
                                –
                                –
                                –
                                –
                                –
                                –
 
 
Critical Vendor / 503(b)(9)
 
                                –
                                –
                                –
                                –
                                –
                                –
                                –
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Non-Operating & Restructuring Disbursements
 
                                –
                                –
                                –
                                –
                                –
                                –
                                –
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Disbursements
 
 $ (754)
 $ (958)
 $ (124,883)
 $ -
 $ (1,762)
 $ (85)
 $ -
 
 
 
 
 
 
 
 
 
 
 
 
 
Intercompany
 
                                –
                 (131,616)
            (22,187,605)
                         (220)
                     68,090
                             85
                    (67,955)
 
 
Revolver Borrowing/(Repayment)
 
                                –
                                –
                                –
                                –
                                –
                                –
                                –
 
 
Customer Deposits Returned
 
                                –
                                –
                 (115,159)
                                –
                                –
                                –
                                –
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other Disbursements/Adjustments
 
                               -
                 (131,616)
            (22,302,764)
                         (220)
                     68,090
                             85
                    (67,955)
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance
 
 $ 148,253
 $ -
 $ -
 $ -
 $ 68,212
 $ -
 $ 5,000
 
 
 
 
 
 
 
 
 
 
 
 
(1) Debtor entities not included in the above do not maintain bank accounts
(2) Schedule of receipts and disbursements includes Debtor entities and does not include cash or activity related to the Debtor's Canadian subsidiaries
 
 
9
 
 
In re: Fusion Connect, Inc. et al.
 
 
 
 
 
 
 
Case No.: 19-11811 (SMB) (Jointly Administered)
 
 
 
 
 
 
 
 
 
Period from: June 3, 2019 to June 30, 2019
 
 
 
MOR-1b – Bank Account Activity
 
 
 
 
 
 
 
 
 
 
 
 
 
19-11815
19-11815
19-11815
19-11828
19-11828
19-11830
19-11830
 
Account #
 
3257
8587
6283
5824
0761
1353
8201
 
Bank
 
Bank of America
US Bank
US Bank
East West Bank
Union Bank
East West Bank
East West Bank
 
Debtor Entity ($USD Actual) (1)
 
Fusion Communications, LLC
Fusion Communications, LLC
Fusion Communications, LLC
Fusion LLC
Fusion LLC
Fusion Cloud Company LLC
Fusion Cloud Company LLC
 
 
 
 
 
 
 
 
 
 
 
Cash – Beginning of Month (2)
 
 $ 5,000
 $ 35
 $ 611
 $ 360,471
 $ -
 $ 138,579
 $ 52,308
 
 
 
 
 
 
 
 
 
 
 
Sales Receipts
 
                              (0)
                               -
                    4,151
                7,150,527
                1,488,470
                               -
                               -
 
Other Receipts
 
                               -
                               -
                           -
                               -
                               -
                               -
                               -
 
 
 
 
 
 
 
 
 
 
 
Total Receipts
 
                              (0)
                                –
                    4,151
                7,150,527
                1,488,470
                                –
                                –
 
 
 
 
 
 
 
 
 
 
 
Total Funds Available for Operations
 
 $ 5,000
 $ 35
 $ 4,762
 $ 7,510,998
 $ 1,488,470
 $ 138,579
 $ 52,308
 
 
 
 
 
 
 
 
 
 
 
Payroll & Labor Related
 
                                –
                                –
                             –
                                –
                                –
                                –
                                –
 
Payroll Taxes
 
                                –
                                –
                             –
                                –
                                –
                                –
                                –
 
Sales, Use & Other Taxes
 
                                –
                                –
                             –
                                –
                                –
                                –
                                –
 
Telco
 
                                –
                                –
                             –
                                –
                                –
                                –
                                –
 
OTM
 
                                –
                                –
                             –
                                –
                                –
                                –
                                –
 
Rent
 
                                –
                                –
                             –
                                –
                                –
                                –
                                –
 
Capital Lease
 
                                –
                                –
                             –
                                –
                                –
                                –
                                –
 
Information Technology
 
                                –
                                –
                             –
                                –
                                –
                                –
                                –
 
CC Payments & Fees
 
                                –
                                –
                             –
                    (24,267)
                                –
                                –
                                –
 
Ordinary Course Professionals
 
                                –
                                –
                             –
                                –
                                –
                                –
                                –
 
General & Administrative
 
                                –
                         (820)
                   (1,376)
                         (301)
                                –
                      (2,213)
                                –
 
 
 
 
 
 
 
 
 
 
 
Total Operating Disbursements
 
                                –
                         (820)
                   (1,376)
                    (24,569)
                                –
                      (2,213)
                                –
 
 
 
 
 
 
 
 
 
 
 
Total Operating Change
 
                        5,000
                         (785)
                    3,386
                7,486,429
                1,488,470
                   136,365
                     52,308
 
 
 
 
 
 
 
 
 
 
 
Restructuring Professional Fees
 
                                –
                                –
                             –
                                –
                                –
                                –
                                –
 
Interest and Fees
 
                                –
                                –
                             –
                                –
                                –
                                –
                                –
 
DIP Fees
 
                                –
                                –
                             –
                                –
                                –
                                –
                                –
 
Critical Vendor / 503(b)(9)
 
                                –
                                –
                             –
                                –
                                –
                                –
                                –
 
 
 
 
 
 
 
 
 
 
 
Total Non-Operating & Restructuring Disbursements
 
                                –
                                –
                             –
                                –
                                –
                                –
                                –
 
 
 
 
 
 
 
 
 
 
 
Total Disbursements
 
 $ -
 $ (820)
 $ (1,376)
 $ (24,569)
 $ -
 $ (2,213)
 $ -
 
 
 
 
 
 
 
 
 
 
 
Intercompany
 
                                0
                        1,000
                   (1,000)
                                –
              (1,483,909)
                1,755,686
                        2,062
 
Revolver Borrowing/(Repayment)
 
                                –
                                –
                             –
                                –
                                –
                                –
                                –
 
Customer Deposits Returned
 
                                –
                                –
                             –
                      (8,927)
                      (4,560)
                                –
                                –
 
 
 
 
 
 
 
 
 
 
 
Total Other Disbursements/Adjustments
 
                                0
                        1,000
                   (1,000)
                      (8,927)
              (1,488,470)
                1,755,686
                        2,062
 
 
 
 
 
 
 
 
 
 
 
Ending Balance
 
 $ 5,000
 $ 215
 $ 2,386
 $ 7,477,502
 $ -
 $ 1,892,051
 $ 54,369
 
 
 
 
 
 
 
 
 
 
 
(1) Debtor entities not included in the above do not maintain bank accounts
(2) Schedule of receipts and disbursements includes Debtor entities and does not include cash or activity related to the Debtor's Canadian subsidiaries
 
 
10
 
 
In re: Fusion Connect, Inc. et al.
 
 
 
 
 
 
 
 
Case No.: 19-11811 (SMB) (Jointly Administered)
 
 
 
 
 
 
 
 
 
 
Period from: June 3, 2019 to June 30, 2019
 
 
 
MOR-1b – Bank Account Activity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
19-11830
19-11830
19-11830
 
 
 
 
 
 
Account #
 
8277
3995
0663
 
 
 
 
 
 
Bank
 
East West Bank
East West Bank
Union Bank
 
 
 
 
 
 
Debtor Entity ($USD Actual) (1)
 
Fusion Cloud Company LLC
Fusion Cloud Company LLC
Fusion Cloud Company LLC
 
Current Period
Case-to-Date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash – Beginning of Month (2)
 
 $ -
 $ 2,062
 $ -
 
 $ 3,335,496
 $ 3,335,496
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales Receipts
 
                1,765,535
                               -
                3,365,429
 
             36,552,230
             36,552,230
 
 
 
Other Receipts
 
                               -
                               -
                               -
 
                     11,983
                     11,983
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Receipts
 
                1,765,535
                                –
                3,365,429
 
             36,564,213
             36,564,213
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Funds Available for Operations
 
 $ 1,765,535
 $ 2,062
 $ 3,365,429
 
 $ 39,899,710
 $ 39,899,710
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payroll & Labor Related
 
                                –
                                –
                                –
 
              (4,991,810)
              (4,991,810)
 
 
 
Payroll Taxes
 
                                –
                                –
                                –
 
              (1,434,446)
              (1,434,446)
 
 
 
Sales, Use & Other Taxes
 
                                –
                                –
                                –
 
                 (837,177)
                 (837,177)
 
 
 
Telco
 
                                –
                                –
                                –
 
                 (348,385)
                 (348,385)
 
 
 
OTM
 
                                –
                                –
                                –
 
              (2,648,456)
              (2,648,456)
 
 
 
Rent
 
                                –
                                –
                                –
 
                 (482,435)
                 (482,435)
 
 
 
Capital Lease
 
                                –
                                –
                                –
 
                 (272,402)
                 (272,402)
 
 
 
Information Technology
 
                                –
                                –
                                –
 
                 (261,418)
                 (261,418)
 
 
 
CC Payments & Fees
 
                                –
                                –
                                –
 
                 (202,526)
                 (202,526)
 
 
 
Ordinary Course Professionals
 
                                –
                                –
                                –
 
                    (89,233)
                    (89,233)
 
 
 
General & Administrative
 
                      (1,577)
                                –
                                –
 
                 (103,654)
                 (103,654)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Operating Disbursements
 
                      (1,577)
                                –
                                –
 
            (11,671,941)
            (11,671,941)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Operating Change
 
                1,763,958
                        2,062
                3,365,429
 
             28,227,769
             28,227,769
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring Professional Fees
 
                                –
                                –
                                –
 
                    (45,023)
                    (45,023)
 
 
 
Interest and Fees
 
                                –
                                –
                                –
 
                 (378,780)
                 (378,780)
 
 
 
DIP Fees
 
                                –
                                –
                                –
 
              (1,975,000)
              (1,975,000)
 
 
 
Critical Vendor / 503(b)(9)
 
                                –
                                –
                                –
 
                                –
                                –
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Non-Operating & Restructuring Disbursements
 
                                –
                                –
                                –
 
              (2,398,804)
              (2,398,804)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Disbursements
 
 $ (1,577)
 $ -
 $ -
 
 $ (14,070,744)
 $ (14,070,744)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intercompany
 
              (1,755,686)
                      (2,062)
              (3,360,543)
 
                                –
                                –
 
 
 
Revolver Borrowing/(Repayment)
 
                                –
                                –
                                –
 
             20,000,000
             20,000,000
 
 
 
Customer Deposits Returned
 
                      (8,273)
                                –
                      (4,886)
 
                 (141,805)
                 (141,805)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other Disbursements/Adjustments
 
              (1,763,958)
                      (2,062)
              (3,365,429)
 
             19,858,195
             19,858,195
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance
 
 $ -
 $ -
 $ -
 
 $ 45,687,161
 $ 45,687,161
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Debtor entities not included in the above do not maintain bank accounts
(2) Schedule of receipts and disbursements includes Debtor entities and does not include cash or activity related to the Debtor's Canadian subsidiaries
 
 
11
 
 
In re: Fusion Connect, Inc. et al.
 
 
 
 
 
 
Case No.: 19-11811 (SMB) (Jointly Administered)
 
 
 
 
 
 
 
 
Period from: June 3, 2019 to June 30, 2019
 
MOR-2 – Income Statement
 
 
 
 
 
 
 
 
 
 
 
Income Statement (1)
 
 
 
 
 
 
 
 
$USD Actual
Current Period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 $ 37,222,639
 
 
 
 
 
 
 
Cost of Revenue
                20,305,088
 
 
 
 
 
 
 
Gross Profit
                16,917,550
 
 
 
 
 
 
 
Gross Margin
 45.4%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating costs:
 
 
 
 
 
 
 
 
Selling, General and Administrative
                10,057,849
 
 
 
 
 
 
 
Share-based compensation expense
                      545,178
 
 
 
 
 
 
 
Non-recurring expense
                   6,383,655
 
 
 
 
 
 
 
Depreciation & amortization
                   4,509,197
 
 
 
 
 
 
 
Foreign currency (gain) loss
                                   –
 
 
 
 
 
 
 
Total operating expenses
                21,495,879
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss)
                 (4,578,329)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
                 (7,999,076)
 
 
 
 
 
 
 
Other income (expense)
                        10,287
 
 
 
 
 
 
 
Total other expense
                 (7,988,789)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
               (12,567,118)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax benefit (expense)
                       (12,500)
 
 
 
 
 
 
 
Net income (loss) from continuing operations
               (12,579,618)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income (loss) from discontinued operations
                                   –
 
 
 
 
 
 
 
Net income (loss)
 $ (12,579,618)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Financial Statement has been prepared on a GAAP basis and is reflective of the full month of June 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12
 
 
In re: Fusion Connect, Inc. et al.
 
 
 
 
 
 
 
 
Case No.: 19-11811 (SMB) (Jointly Administered)
 
 
 
 
 
 
 
 
 
 
Period from: June 3, 2019 to June 30, 2019
 
MOR-3 – Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
 
$USD Actual
Current Period