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Full title: Report of Operations for February 2020 filed by Jeffrey A Hokanson on behalf of Member Debtor HHG Distributing LLC. (Hokanson, Jeffrey) (Entered: 03/26/2021)

Document posted on Mar 25, 2021 in the bankruptcy, 11 pages and 0 tables.

Bankrupt11 Summary (Automatically Generated)

For the Period of February 1, 2021 to (In Thousands) February 28, 2021 Cash flows from operating activities: Net cash provided by (used in) operating activities $ -Cash flows from investing activities: Purchases of property and equipment - Proceeds from sale of property and equipment - Other - Net cash used in investing activities - Cash flows from financing activities: Net Borrowings (Repayments) on Line of Credit - - Increase/(decrease) in cash and cash equivalents - Cash and cash equivalents at beginning of period - Cash and cash equivalents at end of period $ - DEBTORS AND DEBTORS IN POSSESSION Retained Professionals Approved Amounts (1) Disbursements MORGAN, LEWIS & BOCKIUS LLP Legal Services $ 2,779 $ -STIFEL, NICOLAUS & COMPANY INC Bankruptcy Services $ - $ -BERKELEY RESEARCH GROUP LLC Bankruptcy Services $ 2,423 $ -DONLIN, RECANO & COMPANY INC Bankruptcy Services $ - $ -ICE MILLER LLP Legal Services $ 2,007 $ -BINGHAM GREENBAUM DOLL LLP Bankruptcy Services $ 235 $ -MALFITANO PARTNERS Bankruptcy Services $ 66 $ -COOLEY LLP Bankruptcy Services $ 2,558 $ -PROVINCE, INC.Bankruptcy Services $ 556 $ -DLA PIPER LLP US Bankruptcy Services $ 5 $ -FAEGRE DRINKER BIDDLE & REATH Bankruptcy Services $ - $ -CHOATE HALL & STEWART LLP Bankruptcy Services $ - $ -ASK LLP Bankruptcy Services $ - $ -GREAT AMERICAN GROUP Bankruptcy Services $ - $ -GAVINTotal Accounts Receivable at the beginning of the reporting period $ - - $ -+ Amounts billed during the period - - - - Amounts collected during the period - - - - Other Adjustments (Writeoffs/Credit Memos/Adjustments/Chargebacks/Signifyd Funding) - - -Total Accounts Receivable at the end of the reporting period $ - $ - $ -As of February 28, 2021

List of Tables

Document Contents

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DEBTORS AND DEBTORS IN POSSESSION Condensed Consolidated Statement of Income (unaudited) For the Period of February 1, 2021 to (In Thousands) February 28, 2021 Net Sales $ - Cost of Goods Sold - Gross Profit - Operating Expenses: Advertising Expense, Net - Occupancy Costs - Data Communications - Repair and Maintenance - Company Insurance (Non-Medical) - Employee Benefits - Wage Expense - Employee Services - Travel and Entertainment - Bank Transaction Fees - Professional Fees - Stock Compensation Expense (Benefit), Net - Gain/Loss on Early Extinguishment of Debt - Depreciation and Amortization - Administrative and Sales Expense - Product Services Expense - Bad Debts - Total Operating Expenses - Operating Income - Interest Expense, net - Other Income/(Expense) - Income Before Taxes - Income Tax Expense/(Benefit) - Net Income $ -

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DEBTORS AND DEBTORS IN POSSESSION Condensed Consolidated Balance Sheet (unaudited) As of (In Thousands) 2/28/2021 Assets Cash $ - Credit Card and Trade Accounts Receivable, Net - Accounts Receivable - Other - Merchandise Inventories - Prepaid Expenses and Other Assets - Income Taxes Receivable - Total Current Assets - Property and Equipment, Net - Capitalized Financing Fees, Net - Goodwill - Trademarks, Net - Other Assets, Net - Total Assets $ - Liabilities and Stockholders' Deficit Accounts Payable - Oustanding Customer Deposits, Credits, Refunds - Unredeemed Gift Card Liability - Other Accrued Expenses - Deferred Tax Liability - DIP Loans - Total Current Liabilities $ - Deferred Rent - LT Deferred Compensation - Other Long-term Liabilities - Liabilities Subject to Compromise - Total Liabilities $ - Preferred Stock - Common Stock - Retained Earnings / (Accumulated Deficit) - Treasury Stock - Additional Paid-in Capital - Total Stockholders' Deficit $ - Total Liabilities and Stockholders' Deficit $ -

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DEBTORS AND DEBTORS IN POSSESSION Condensed Consolidated Statement of Cash Flows (unaudited) For the Period of February 1, 2021 to (In Thousands) February 28, 2021 Cash flows from operating activities: Net cash provided by (used in) operating activities $ -Cash flows from investing activities: Purchases of property and equipment - Proceeds from sale of property and equipment - Other - Net cash used in investing activities - Cash flows from financing activities: Net Borrowings (Repayments) on Line of Credit - - Increase/(decrease) in cash and cash equivalents - Cash and cash equivalents at beginning of period - Cash and cash equivalents at end of period $ -

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DEBTORS AND DEBTORS IN POSSESSION Total Disbursements by Filed Legal Entity (unaudited) (In Thousands) For the Period of February 1, 2021 to February 28, 2021 Legal Entity Case Number Disbursements HHG Distributing LLC 17-01304-11 $ -

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DEBTORS AND DEBTORS IN POSSESSION Bank Reconciliations (unaudited) (In Thousands) G/L Acct Account Name Bank Acct # Debtor Description Bank Balance Ledger Balance As of Date ReconciledNOTE: No bank accounts are held by HHG Distributing LLC

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DEBTORS AND DEBTORS IN POSSESSION Total Disbursements to Retained Professionals (unaudited) (In Thousands) For the Period of February 1, 2021 to February 28, 2021 Retained Professionals Approved Amounts (1) Disbursements MORGAN, LEWIS & BOCKIUS LLP Legal Services $ 2,779 $ -STIFEL, NICOLAUS & COMPANY INC Bankruptcy Services $ - $ -BERKELEY RESEARCH GROUP LLC Bankruptcy Services $ 2,423 $ -DONLIN, RECANO & COMPANY INC Bankruptcy Services $ - $ -ICE MILLER LLP Legal Services $ 2,007 $ -BINGHAM GREENBAUM DOLL LLP Bankruptcy Services $ 235 $ -MALFITANO PARTNERS Bankruptcy Services $ 66 $ -COOLEY LLP Bankruptcy Services $ 2,558 $ -PROVINCE, INC. Bankruptcy Services $ 556 $ -DLA PIPER LLP US Bankruptcy Services $ 5 $ -FAEGRE DRINKER BIDDLE & REATH Bankruptcy Services $ - $ -CHOATE HALL & STEWART LLP Bankruptcy Services $ - $ -ASK LLP Bankruptcy Services $ - $ -GREAT AMERICAN GROUP Bankruptcy Services $ - $ -GAVIN SOLMENESE LLC Bankruptcy Services $ 136 $ -CHIPMAN BROWN CICERO & COLE, LLPLegal Services $ 1,987 $ -Total $ 12,754 $ -(1) Approved amounts represent the amount of fees and expenses that were approved by court order for payment by the Debtors to each professional from commencement of the case through February 2021.

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DEBTORS AND DEBTORS IN POSSESSION Summary of Unpaid Post-Petition Debts (unaudited) As of 2/28/2021 (In Thousands) HHG Distributing LLC (17-01304-11) Number of Days Past Due Current 0-30 31-60 61-90 Over 90 Total
Table 1 on page 8. Back to List of Tables
Accounts Payable $ - $ - $ - $ - $ - $ -
Wages Payable - - - - - -
Taxes Payable - - - - - -
Rent/Leases-Building - - - - - -
Utilities Payable - - - - - -
Insurance Reserves - - - - - -
Secured Debt/Adequate Protection Payments - - - - - -
Professional Fees - - - - - -
Amounts Due to Insiders - - - - - -
Outstanding Customer Deposits, Credits, Refunds - - - - - -
Unredeemed Gift Card Liability - - - - - -
Deferred Rent - - - - - -
LT Deferred Compensation - - - - - -
Other - - - - - -
Total Post-Petition Debts $ - $ - $ - $ - $ - $ -

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DEBTORS AND DEBTORS IN POSSESSION Schedule of Federal, State, & Local Taxes Collected, Received, Due or Witheld (unaudited)(In Thousands) For the Period of February 1, 2021 to February 28, 2021 Amount Beginning Tax Withheld or Liability Accrued Amount Paid Date Paid Check No. or EFT Ending Tax LiabilityFederal Withholding $ - $ - $ - $ -FICA - Employee $ - $ - $ - $ -FICA - Employer $ - $ - $ - $ -Unemployment $ - $ - $ - $ -Income $ - $ - $ - $ -Total Federal Taxes $ - $ - $ - $ -State and Local Withholding $ - $ - $ - $ -Sales and Use $ - $ - $ - $ -Excise $ - $ - $ - $ -Unemployment $ - $ - $ - $ -Real Property $ - $ - $ - $ -Personal Property $ - $ - $ - $ -Other $ - $ - $ - $ -Total State and Local $ - $ - $ - $ -

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DEBTORS AND DEBTORS IN POSSESSION Accounts Receivable Aging (unaudited) (In Thousands) As of February 28, 2021 Accounts Receivable Reconciliation Credit Card Trade Accounts Total Credit Card and Receivables Receivable Trade Accounts Receivable Total Accounts Receivable at the beginning of the reporting period $ - - $ -+ Amounts billed during the period - - - - Amounts collected during the period - - - - Other Adjustments (Writeoffs/Credit Memos/Adjustments/Chargebacks/Signifyd Funding) - - -Total Accounts Receivable at the end of the reporting period $ - $ - $ -As of February 28, 2021 Accounts Receivable Aging < 90 $ - $ - $ -91+ - - - Total Accounts Receivable - - - Amount Considered Uncollectible - - - Accounts Receivable, Net $ - $ - $ -NOTES

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DEBTORS AND DEBTORS IN POSSESSION Questionnaire 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. X 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. X 3. Have all post-petition tax returns been filed timely? If no, provide an explanation below. X 4. Are workers compensation, general liability, and other necessary insurance coverages in effect? If no, provide an explanation below. X 5. Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment has been opened provide the required documentation X pursuant to the Delaware Local Rule 4001-3. Account Name Purpose Business Acct Number Bank Name Date

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