EXHIBIT 5.2
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OFFICE OF THE UNITED STATES TRUSTEE
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IN RE: ) DEBTOR IN POSSESSION OPERATING REPORT
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)
Thermatrix Inc. ) REPORT NUMBER 4 Page 1 of 3
) FOR THE PERIOD FROM 1-Mar-00
DEBTOR ) TO: 31-Mar-00
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CHAPTER 11 CASE NO. SA99-22776-JR )
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1. Profit and Loss Statement
A. Related to Business Operations:
Gross Sales
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Less Sales Returns and Discounts
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Net Sales
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Less: Cost of Goods Sold
Beginning Inventory at Cost
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Add: Purchases
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Less: Ending Inventory at Cost
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Cost of Goods Sold
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Gross Profit
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Other Operating Revenue (Specify)
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Less: Operating Expenses SEE ATTACHED
Officer Compensation
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Salaries & Wages - Other Employees
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Total Salaries & Wages
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Employee Benefits
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Payroll Taxes
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Real Estate Taxes
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Federal and State Income Taxes
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Total Taxes
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Rent and Lease Exp. (Real and Personal Property)
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Interest Expense (Mortgage, Loan, etc.)
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Insurance
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Automobile Expense
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Utilities (Gas, Electric, Water, Telephone, etc.)
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Depreciation and Amortization
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Repairs and Maintenance
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Advertising
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Supplies, Office Expenses, Photocopies, etc.
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Bad Debts
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Miscellaneous Operating Expenses (Specify)
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Total Operating Expenses
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Net Gain/(Loss) from Business Operations
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B. Not Related to Business Operations
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Income:
Interest Income
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Other Non-Operating Revenues (Specify)
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Gross Proceeds on Sale of Assets
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Less: Original Cost of Assets plus Expenses of Sale
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Net Gain/(Loss) on Sale of Assets
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Total Non-Operating Income
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Expenses Not Related to Business Operations:
Legal and Professional Fees
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Other Non-Operating Revenues (Specify)
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Total Non-Operating Expenses
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NET INCOME/(LOSS) FOR PERIOD
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Revised April 1989 OPERATING REPORT UST-4
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Thermatrix Inc
Income Statement
3/1/00
Revenues 3/31/00
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APC & waste water 605,875
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605,875
Cost of revenue
Fringe benefits 28,795
Indirect labor/overhead 34,974
Direct labor-engr 89,809
Subcontractor 20,843
Direct materials 99,413
Direct travel 22,374
Other direct costs 1,684
WIP clearing account 42,714
Reserve clearing account -
Intercompany (19,479)
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321,129
Costs and expenses
Fringe benefits-R&D 3,484
Indirect lbr/ovhd - R&D 531
Direct labor - R&D 10,951
Subcontractors - R&D
Direct materials - R&D 325
Direct travel - R&D 50
Demo depreciation - R&D 911
Other direct costs - R&D -
WIP clearing account -R&D -
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Total R&D costs 16,253
Sales commissions
Selling expenses 8,822
Fringe benefits - B&P 4,199
Direct labor - B&P 12,884
Subcontractors - B&P
Other direct costs - B&P 118
Direct travel - B&P 457
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Total selling & B&P costs 26,480
General & administrative 174,407
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Total G&A costs 174,407
Total costs and expenses 217,139
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Gross profit from operations 67,607
Other income
Interest income 2,322
Other income 25,039
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27,361
Other expenses
Interest expense 85,365
Other expense 0
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85,365
Net income before taxes 9,603
Income taxes
State income taxes -
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Net income after tax before
restructuring charges 9,603
Restructuring charges 413,189
Net income after
restructuring charges - note 1 (403,586)
Note 1 - This statement has not been adjusted to reflect the appropriate
allocation of corporate expenses (including restructuring charges).
Due to the 1999 financial results not being finalized by our independent
auditors the above data is subject to change.
Thermatrix Inc.
G & A Expense Detail
3/1/00 to
3/31/00
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Utilities 45.14
G&A fringe alloc pool 1 21,684.15
Inter div alloc do1p7 (182,155.95)
Admin Salaries/wages 65,922.84
Inter pool alloc d10p7 -
Inter div alloc d10p7 182,155.95
Rent expense - G&A 6,341.65
Contract labr/temp help 12,836.31
Dues & subscriptions 138.61
Publications -
Equip maint & repair 1,353.34
Depreciation exp -adm 2,603.43
Equipment rental 1,794.10
Facilities - G&A 2,534.01
Freight/delivery expense 746.40
Licences/Permits -
Postage 150.00
Recruitment/relocation -
Admin travel 7,156.04
Expensed equipment -
Computer software -
Professional fees 989.39
Professional fees -
Cash over/short -
Miscellaneous expense 785.39
Cash discounts taken (2.57)
Admin entertainment 1,218.69
Insurance - JTS disability -
Insurance - Keyman life -
Insurance - liability 17,767.53
Workers comp-wmflx & WAS 831.70
Patent exp amortization 8,689.56
Accounting fees 48,615.43
Padre tech amortization 8,185.64
Investor relations 395.15
Bank service charges 1,256.55
SEC expense 285.00
Stock administration -
Legal fees 3,248.00
Annual report 5,701.37
Goodwill amortization exp (46,866.00)
U.S. Trustee Fees -
Consulting fees -
ISO certification -
Taxes-other -
Expensed furniture & fix -
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174,406.85
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DEBTOR IN POSSESSION OPERATING REPORT NO. 4
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Thermatrix Inc., Debtor Case No. SA 99-22776-JR
Page 2 of 3
2. Aging of Accounts Payable and Receivable (exclude pre-petition debt from
accounts payable):
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Accounts Payable Accounts Receivable
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Current Under 30 days $248,219.42 $327,678.71
Overdue 31 - 60 days 34,946.25 116,162.82
Overdue 61 - 90 days - 20,107.00
Overdue 91 - 120 days - 9,367.68
Overdue 121 + days - 84,893.46
Total $283,165.67 $558,209.67
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3. Statement of Status of Payments to Secured Creditors and Lessors:
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Post-Petition
Frequency of Payments Not Made
Payments per Amount of -------------------
Creditor/Lessor Lease/Contract Each Payment Next Payment Due Number Amount
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See attached for Statement of Status of Payments to Secured Creditors and Lessors.
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4. Tax Liability:
Gross Payroll Expense For Period $ 210,996
Gross Sales for Period Subject to Sales Tax -
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Post Petition Taxes
Date Paid Amount Paid * Still Owing
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Federal Payroll and Withholding Taxes Various (see below **) $64,640.87 $ -
State Payroll and Withholding Taxes Various (see below **) 2,450.55 -
State Sales and Use Tax -
Real Property Taxes -
* Attach photocopies of depository receipts from taxing authority or
financial institution to verify that such deposits or payments have
been made.
** State and federal payroll/withholding taxes are paid by a payroll
service provider
5. Insurance Coverage
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Carrier/ Amount of Policy Premium Paid
Agent Coverage Exp. Date Thru Date
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Worker's Compensation
Liability
Fire and Extended Coverage See attached for Insurance Coverage
Property
Theft
Life (Beneficiary:________________)
Vehicle
Other
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DEBTOR IN POSSESSION OPERATING REPORT NO. 4
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Thermatrix Inc., Debtor Case No. SA 99-22776-JR
Page 3 of 3
6. Questions:
A. Has the Trustee provided to any officers, directors, shareholders, or
other principals compensation without the approval of the Office of the
United States Trustee?
_____ : Yes Explain:
__X__ : No
B. Has the Trustee, subsequent to the filing of the petition made any
payments on its pre-petition unsecured debt, except as have been
authorized by the Court?
_____ : Yes Explain:
__X__ : No
7. Statement of Unpaid Professional Fees (Post-Petition Only):
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Type Post-Petition
Name of Professional Professional Unpaid Total
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PriceWaterhouseCoopers Consulting $381,630.00
XxXxxxxxx, Will & Xxxxx Legal 381,062.87
Xxxxx & Xxxxxx - Creditors Counsel Legal 78,897.94
Xxxxx Xxxxxxxx Accounting 97,985.40
Xxxxxx & Associates Consulting 51,341.68 - estimated
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8. Narrative Report of Significant Events And Events Out Of The Ordinary Course
Of Business:
9. Quarterly Fees: (This Fee must be paid to the United States Trustee every
calendar quarter)
Quarterly
Quarterly Disbursements Quarterly Quarterly
Period Ending for Quarter Fee Date Paid Amount Paid Check No. Fee Still Owing
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3/31/00 $1,350,683 $5,000.00 $5,000.00
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I, Xxxxxx Xxxxxx, President, declare under penalty of perjury that the
information contained in the above Debtor in Possession Operating Report, which
is subject to further review and verification, is true and complete to the best
of my knowledge.
Dated: 4/17/00 Signed: /s/ Xxxxxx X. Xxxxxx
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DEBTOR IN POSSESSION OPERATING REPORT NO. 4
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Thermatrix Inc., Debtor Case No. SA 99-22776-JR
3. Statement of Status of Payments to Secured Creditors and Lessors:
Post-Petition
Frequency of Payments Not Made
Payments per Amount of -----------------
Creditor/Lessor Lease/Contract Each Payment Next Payment Due Number Amount
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Wexford Management Payments have been suspended due to Chapter 11 filing
GE Capital (Mita Financial) Monthly $ 1,450.00 4/23/00 $ -
Neopost Quarterly 178.45 6/18/00 -
Advantage Place/Wood Properties Monthly 19,385.00 5/1/00 -
Cedar Bluff Self-Storage Monthly 180.00 5/1/00 -
Climetrics Research Monthly 11,718.00 5/1/00 -
IOS Capital Monthly 538.90 3 1,616.70
Scottish Amicable Life Assurance Quarterly 8636.25 sterling researching -
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