Exhibit 99.1
 
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:
August 1, 2019 to August 31, 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
 
09/20/19  
 
Keith Soldan, Chief Financial Officer
 
Date  
 
 
 
 
 
 
210 Interstate North Parkway, Suite 300,
Atlanta, GA 30339
 
 
 
 
Debtors' Address
 
 
 
 
 
 

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. The reporting period of this MOR is August 1, 2019 through August 31, 2019.
 
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.
 

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
 
 
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.
 
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. The Final DIP Order provides for a superpriority term loan facility consisting of (i) new money term loans in the aggregate principal amount of $39.5 million (the “New Money Loans”) and (ii) “roll-up” term loans in an aggregate principal amount of up to $20.0 million representing the roll-up, on a dollar-for-dollar basis, of the aggregate outstanding principal amount of loans under that certain Super Senior Secured Credit Agreement, dated as of May 9, 2019. Twenty million dollars of the New Money loans were funded on June 7, 2019, with the remaining $19.5 million dollars funded on or about July 11, 2019.
 
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: August 1, 2019 to August 31, 2019
 
MOR-1 – Schedule of Cash Receipts and Disbursements
 
Schedule of Receipts and Disbursements             
Debtor Entity ($USD Actual) (1), (2)
 
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
 $59,029,735 
 $40,662 
 $44,114 
 $7,826,262 
 $920,048 
 $67,860,821 
 $3,335,496 
 
    
    
    
    
    
    
    
Sales Receipts
  89,853 
  25,127,036 
  69,122 
  8,983,734 
  4,871,107 
  39,140,851 
  122,617,373 
Other Receipts
  58,480 
  - 
  - 
  - 
  - 
  58,480 
  81,498 
 
    
    
    
    
    
    
    
Total Receipts
  148,334 
  25,127,036 
  69,122 
  8,983,734 
  4,871,107 
  39,199,332 
  122,698,871 
 
    
    
    
    
    
    
    
Total Funds Available for Operations
 $59,178,069 
 $25,167,698 
 $113,236 
 $16,809,996 
 $5,791,155 
 $107,060,153 
 $126,034,367 
 
    
    
    
    
    
    
    
Payroll & Labor Related
  (5,551,395)
   
   
   
   
  (5,551,395)
  (15,922,640)
Payroll Taxes
  (1,372,349)
   
   
   
   
  (1,372,349)
  (4,240,332)
Sales, Use & Other Taxes
  (4,373,186)
   
   
   
   
  (4,373,186)
  (9,866,456)
Telco
  (18,711,215)
   
   
  (2,993,115)
  (2,093,976)
  (23,798,305)
  (48,778,639)
OTM
  (2,631,972)
   
   
   
   
  (2,631,972)
  (7,915,806)
Rent
  (987,622)
   
   
   
   
  (987,622)
  (3,198,098)
Capital Lease
  (446,841)
   
   
   
   
  (446,841)
  (925,640)
Information Technology
  (888,521)
   
   
   
   
  (888,521)
  (1,750,957)
CC Payments & Fees
  (127,779)
   
  (2,063)
  (24,589)
  (511)
  (154,941)
  (706,218)
Ordinary Course Professionals
  (162,691)
   
   
   
   
  (162,691)
  (264,084)
General & Administrative
  (583,011)
  (39,932)
  (2,357)
  (2,269)
  (2,119)
  (629,687)
  (1,791,666)
 
    
    
    
    
    
    
    
Total Operating Disbursements
  (35,836,583)
  (39,932)
  (4,419)
  (3,019,973)
  (2,096,605)
  (40,997,512)
  (95,360,536)
 
    
    
    
    
    
    
    
Total Operating Change
  23,341,486 
  25,127,765 
  108,817 
  13,790,023 
  3,694,550 
  66,062,641 
  30,673,831 
 
    
    
    
    
    
    
    
Restructuring Professional Fees
  (3,635,966)
   
   
   
   
  (3,635,966)
  (4,315,591)
Interest and Fees
  (416,700)
   
   
   
   
  (416,700)
  (1,309,376)
DIP Fees
   
   
   
   
   
   
  (1,975,000)
Critical Vendor / 503(b)(9)
  (2,875,000)
   
   
   
   
  (2,875,000)
  (3,188,783)
 
    
    
    
    
    
    
    
Total Non-Operating & Restructuring Disbursements
  (6,927,666)
   
   
   
   
  (6,927,666)
  (10,788,750)
 
    
    
    
    
    
    
    
Total Disbursements
 $(42,764,249)
 $(39,932)
 $(4,419)
 $(3,019,973)
 $(2,096,605)
 $(47,925,178)
 $(106,149,287)
 
    
    
    
    
    
    
    
Intercompany
  35,204,320 
  (25,100,991)
  (85,000)
  (7,211,463)
  (2,806,867)
   
   
Revolver Borrowing/(Repayment)
   
   
   
   
   
   
  39,500,000 
Customer Deposits Returned
  (24,150)
  (21,705)
   
  (4,341)
  (18,176)
  (68,372)
  (318,478)
US Trustee Fees
  (145,942)
   
   
   
   
  (145,942)
  (145,942)
 
    
    
    
    
    
    
    
Total Other Disbursements/Adjustments
  35,034,228 
  (25,122,696)
  (85,000)
  (7,215,804)
  (2,825,043)
  (214,314)
  39,035,580 
 
    
    
    
    
    
    
    
Ending Balance
 $51,448,048 
 $5,070 
 $23,817 
 $6,574,219 
 $869,507 
 $58,920,661 
 $58,920,661 
 
(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: August 1, 2019 to August 31, 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
  18,375 
  11,096 
  (7,279)
Fusion Connect, Inc.
19-11811
Union Bank
0333 
Concentration
  21,486,360 
  13,911,952 
  (7,574,408)
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
  37,525,000 
  37,525,000 
  (1)
Fusion Cloud Services, LLC
19-11814
Bank of America
2842 
Collections
  40,662 
  5,070 
  (35,592)
Fusion Cloud Services, LLC
19-11814
PNC
1332 
Collections
   
   
   
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
  29,419 
  6,665 
  (22,754)
Fusion Communications, LLC
19-11815
Bank of America
0808 
Not in use
   
   
   
Fusion Communications, LLC
19-11815
Bank of America
2846 
Collections
  5,000 
  5,000 
   
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
  534 
  859 
  325 
Fusion Communications, LLC
19-11815
US Bank
6283 
Collections
  4,161 
  6,292 
  2,131 
Fusion LLC
19-11828
East West Bank
5824 
Disbursement
  7,826,262 
  6,574,219 
  (1,252,043)
Fusion LLC
19-11828
Union Bank
0761 
Collections
   
   
   
Fusion Cloud Company LLC
19-11830
East West Bank
1353 
Concentration
  229,829 
  98,265 
  (131,565)
Fusion Cloud Company LLC
19-11830
East West Bank
8201 
Disbursement
  690,218 
  771,243 
  81,024 
Fusion Cloud Company LLC
19-11830
East West Bank
8277 
Collections
   
   
   
Fusion Cloud Company LLC
19-11830
East West Bank
3995 
Not in use
   
   
   
Fusion Cloud Company LLC
19-11830
Union Bank
0663 
Collections
   
   
   
 
       
 
       
 
    
    
    
Total
       
 
       
 
 $67,860,821 
 $58,920,661 
 $(8,940,160)
 
(1)
Ending cash balance includes $19.5mm of restricted cash
 

6
 
 
In re: Fusion Connect, Inc. et al.
Case No.: 19-11811 (SMB) (Jointly Administered)
 
Period from: August 1, 2019 to August 31, 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
  11,096 
  11,056 
  (40)
 Yes
Fusion Connect, Inc.
19-11811 
Union Bank
0333 
Concentration
  13,911,952 
  13,911,952 
  (0)
 Yes
Fusion Connect, Inc.
19-11811 
Union Bank
0317 
Disbursement
   
   
   
 Yes
Fusion Connect, Inc.
19-11811 
Union Bank
0325 
Disbursement
   
  (570,742)
  (570,742)
 Yes
Fusion Connect, Inc.
19-11811 
Union Bank
0218 
DDA
   
   
   
 Yes
Fusion Connect, Inc.
19-11811 
Union Bank
0655 
DIP Account
  37,525,000 
  37,525,000 
   
 Yes
Fusion Cloud Services, LLC
19-11814 
Bank of America
2842 
Collections
  5,070 
  5,070 
  0 
 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
  6,665 
  6,665 
  (0)
 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
  859 
  859 
  (0)
 Yes
Fusion Communications, LLC
19-11815 
US Bank
6283 
Collections
  6,292 
  6,292 
  (0)
 Yes
Fusion LLC
19-11828 
East West Bank
5824 
Disbursement
  6,574,219 
  6,440,810 
  (133,409)
 Yes
Fusion LLC
19-11828 
Union Bank
0761 
Collections
   
   
   
 Yes
Fusion Cloud Company LLC
19-11830 
East West Bank
1353 
Concentration
  98,265 
  98,265 
  0 
 Yes
Fusion Cloud Company LLC
19-11830 
East West Bank
8201 
Disbursement
  771,243 
  703,606 
  (67,637)
 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
   
   
   
 Yes
 
       
 
       
 
    
    
    
 
Total
       
 
       
 
 $58,920,661 
 $58,148,833 
 $(771,828)
 
 
(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: August 1, 2019 to August 31, 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), (2)
 
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
 $- 
 $18,375 
 $21,486,360 
 $- 
 $- 
 $- 
 $37,525,000 
 
    
    
    
    
    
    
    
Sales Receipts
  - 
  - 
  - 
  19,011 
  70,843 
  - 
  - 
Other Receipts
  - 
  - 
  - 
  - 
  58,480 
  - 
  - 
 
    
    
    
    
    
    
    
Total Receipts
   
   
   
  19,011 
  129,323 
   
   
 
    
    
    
    
    
    
    
Total Funds Available for Operations
 $ 
 $18,375 
 $21,486,360 
 $19,011 
 $129,323 
 $ 
 $37,525,000 
 
    
    
    
    
    
    
    
Payroll & Labor Related
   
   
   
  (3,639,280)
  (1,912,115)
   
   
Payroll Taxes
   
   
   
  (1,372,349)
   
   
   
Sales, Use & Other Taxes
   
   
   
   
  (4,373,186)
   
   
Telco
   
   
  (58,970)
   
  (18,652,245)
   
   
OTM
   
   
   
   
  (2,631,972)
   
   
Rent
   
   
   
   
  (987,622)
   
   
Capital Lease
   
   
   
   
  (446,841)
   
   
Information Technology
   
   
   
   
  (888,521)
   
   
CC Payments & Fees
   
   
   
   
  (127,779)
   
   
Ordinary Course Professionals
   
   
   
   
  (162,691)
   
   
General & Administrative
   
  (7,279)
   
   
  (575,732)
   
   
 
    
    
    
    
    
    
    
Total Operating Disbursements
   
  (7,279)
  (58,970)
  (5,011,629)
  (30,758,704)
   
   
 
    
    
    
    
    
    
    
Total Operating Change
   
  11,096 
  21,427,390 
  (4,992,619)
  (30,629,381)
   
  37,525,000 
 
    
    
    
    
    
    
    
Restructuring Professional Fees
   
   
   
   
  (3,635,966)
   
   
Interest and Fees
   
   
   
   
  (416,700)
   
   
DIP Fees
   
   
   
   
   
   
   
Critical Vendor / 503(b)(9)
   
   
   
   
  (2,875,000)
   
   
 
    
    
    
    
    
    
    
Total Non-Operating & Restructuring Disbursements
   
   
   
   
  (6,927,666)
   
   
 
    
    
    
    
    
    
    
Total Disbursements
 $- 
 $(7,279)
 $(58,970)
 $(5,011,629)
 $(37,686,370)
 $- 
 $- 
 
    
    
    
    
    
    
    
Intercompany
   
   
  (7,515,438)
  4,992,619 
  37,727,139 
   
   
Revolver Borrowing/(Repayment)
   
   
   
   
   
   
   
Customer Deposits Returned
   
   
   
   
  (24,150)
   
   
US Trustee Fees
   
   
   
   
  (145,942)
   
   
 
    
    
    
    
    
    
    
Total Other Disbursements/Adjustments
  - 
  - 
  (7,515,438)
  4,992,619 
  37,557,047 
  - 
  - 
 
    
    
    
    
    
    
    
Ending Balance
 $- 
 $11,096 
 $13,911,952 
 $- 
 $- 
 $- 
 $37,525,000 
 
(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: August 1, 2019 to August 31, 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), (2)
 
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
 $40,662 
 $- 
 $- 
 $- 
 $29,419 
 $- 
 $5,000 
 
    
    
    
    
    
    
    
Sales Receipts
  35,099 
  - 
  25,091,936 
  5,187 
  1,067 
  - 
  59,736 
Other Receipts
  - 
  - 
  - 
  - 
  - 
  - 
  - 
 
    
    
    
    
    
    
    
Total Receipts
  35,099 
   
  25,091,936 
  5,187 
  1,067 
   
  59,736 
 
    
    
    
    
    
    
    
Total Funds Available for Operations
 $75,761 
 $ 
 $25,091,936 
 $5,187 
 $30,487 
 $ 
 $64,736 
 
    
    
    
    
    
    
    
Payroll & Labor Related
   
   
   
   
   
   
   
Payroll Taxes
   
   
   
   
   
   
   
Sales, Use & Other Taxes
   
   
   
   
   
   
   
Telco
   
   
   
   
   
   
   
OTM
   
   
   
   
   
   
   
Rent
   
   
   
   
   
   
   
Capital Lease
   
   
   
   
   
   
   
Information Technology
   
   
   
   
   
   
   
CC Payments & Fees
   
   
   
   
   
  (25)
  (2,038)
Ordinary Course Professionals
   
   
   
   
   
   
   
General & Administrative
  (692)
   
  (39,240)
   
  (1,621)
  (60)
   
 
    
    
    
    
    
    
    
Total Operating Disbursements
  (692)
   
  (39,240)
   
  (1,621)
  (85)
  (2,038)
 
    
    
    
    
    
    
    
Total Operating Change
  75,070 
   
  25,052,696 
  5,187 
  28,865 
  (85)
  62,699 
 
    
    
    
    
    
    
    
Restructuring Professional Fees
   
   
   
   
   
   
   
Interest and Fees
   
   
   
   
   
   
   
DIP Fees
   
   
   
   
   
   
   
Critical Vendor / 503(b)(9)
   
   
   
   
   
   
   
 
    
    
    
    
    
    
    
Total Non-Operating & Restructuring Disbursements
   
   
   
   
   
   
   
 
    
    
    
    
    
    
    
Total Disbursements
 $(692)
 $- 
 $(39,240)
 $- 
 $(1,621)
 $(85)
 $(2,038)
 
    
    
    
    
    
    
    
Intercompany
  (70,000)
   
  (25,030,991)
  (5,187)
  (22,200)
  85 
  (57,699)
Revolver Borrowing/(Repayment)
   
   
   
   
   
   
   
Customer Deposits Returned
   
   
  (21,705)
   
   
   
   
US Trustee Fees
   
   
   
   
   
   
   
 
    
    
    
    
    
    
    
Total Other Disbursements/Adjustments
  (70,000)
  - 
  (25,052,696)
  (5,187)
  (22,200)
  85 
  (57,699)
 
    
    
    
    
    
    
    
Ending Balance
 $5,070 
 $- 
 $- 
 $- 
 $6,665 
 $- 
 $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: August 1, 2019 to August 31, 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), (2)
 
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
 $5,000 
 $534 
 $4,161 
 $7,826,262 
 $- 
 $229,829 
 $690,218 
 
    
    
    
    
    
    
    
Sales Receipts
  - 
  - 
  3,131 
  5,769,340 
  3,214,394 
  - 
  - 
Other Receipts
  - 
  - 
  - 
  - 
  - 
  - 
  -