UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): January 19, 2016

 

 

 

LIFE PARTNERS HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

 

Texas   0-7900   74-2962475

(State or other jurisdiction

of incorporation)

  

(Commission

File Number)

  

(IRS Employer

Identification No.)

 

204 Woodhew    
Waco, Texas   76712
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code: (254) 751-7797

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

 

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

 

Item 7.01Regulation FD.

 

On January 19, 2016, Life Partners Holdings, Inc. (the “Company”) and its direct and indirect subsidiaries, Life Partners, Inc. and LPI Financial Services, Inc., filed with the United States Bankruptcy Court for the Northern District of Texas unaudited and unreviewed monthly operating reports for the Company and its direct and indirect subsidiaries for the month ended December 31, 2015 (the “Monthly Operating Reports”). The Monthly Operating Reports are attached to this current report on Form 8-K as Exhibit 99.1 through Exhibit 99.3 and are incorporated herein by reference.

 

Limitation on Incorporation by Reference:

 

In accordance with general instruction B.2 of Form 8-K, the information in Item 7.01 of this report, including Exhibit 99.1 through Exhibit 99.3, is furnished pursuant to Item 7.01 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section.

 

Item 9.01Financial Statements and Exhibits.

 

(d)Exhibits.

 

99.1Monthly Operating Report for the month ended December 31, 2015 for Life Partners Holdings, Inc.

 

99.2Monthly Operating Report for the month ended December 31, 2015 for Life Partners, Inc.

 

99.3Monthly Operating Report for the month ended December 31, 2015 for LPI Financial Services, Inc.

 

 

 


SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  LIFE PARTNERS HOLDINGS, INC.
     
Date:  January 19, 2016 By: /s/ Colette Pieper
    Colette Pieper
    Chief Executive Officer

 

 

 

 

INDEX TO EXHIBITS

 

Item   Exhibit
     
99.1   Monthly Operating Report for the month ended December 31, 2015 for Life Partners Holdings, Inc.
     
99.2   Monthly Operating Report for the month ended December 31, 2015 for Life Partners, Inc.
     
99.3   Monthly Operating Report for the month ended December 31, 2015 for LPI Financial Services, Inc.

 

 



 

Exhibit 99.1

 

  Monthly Operating Report
  ACCRUAL BASIS

 

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11
   
JUDGE: Russell Nelms

 

UNITED STATES BANKRUPTCY COURT

 

NORTHERN & EASTERN DISTRICTS OF TEXAS

 

REGION 6

 

MONTHLY OPERATING REPORT

 

MONTH ENDING:  December   2015  
  MONTH   YEAR  

 

IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT, AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY) IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.

 

RESPONSIBLE PARTY:

 

/s/ H. Thomas Moran II   Trustee
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY   TITLE
     
H. Thomas Moran II   1/19/2016
PRINTED NAME OF RESPONSIBLE PARTY   DATE
     
PREPARER:    
     
/s/ Colette Pieper   CEO
ORIGINAL SIGNATURE OF PREPARER   TITLE
     
Colette Pieper   1/19/2016
PRINTED NAME OF PREPARER   DATE

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-1

 

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11

 

COMPARATIVE BALANCE SHEET

 

      SCHEDULE
AMOUNT		   OCTOBER   NOVEMBER   DECEMBER   
ASSETS                      
1.  UNRESTRICTED  CASH  $51,248   $354,758   $1,605,186   $429,321   
2.  RESTRICTED  CASH                      
3.  TOTAL  CASH  $51,248   $354,758   $1,605,186   $429,321   
4.  ACCOUNTS  RECEIVABLE  (NET)                      
5.  INVENTORY                      
6.  NOTES  RECEIVABLE                      
7.  PREPAID  EXPENSES       $468,698   $437,817   $396,641   
8.  OTHER  (ATTACH  LIST)  $76,415   $84,665   $84,665   $84,665   
9.  TOTAL  CURRENT  ASSETS  $127,664   $908,120   $2,127,668   $910,627   
10.  PROPERTY,  PLANT  &  EQUIPMENT  $2,188,639   $2,188,639   $0   $0  1
11.  LESS:  ACCUMULATED DEPRECIATION/DEPLETION       $(836,838)  $0   $0  1
12.  NET  PROPERTY,  PLANT  & EQUIPMENT  $2,188,639   $1,351,801   $0   $0   
13.  DUE FROM INSIDERS                      
14.  OTHER  ASSETS  -  NET  OF AMORTIZATION  (ATTACH  LIST)  $166,250   $0   $0   $0   
15.  OTHER (ATTACH LIST)                      
16.  TOTAL ASSETS  $2,482,552   $2,259,921   $2,127,668   $910,627   
POSTPETITION  LIABILITIES                      
17.  ACCOUNTS  PAYABLE       $1,045,066   $570,490   $634,711  4
18.  TAXES  PAYABLE       $76,683   $10,590   $8,022  1
19.  NOTES  PAYABLE                      
20.  PROFESSIONAL  FEES       $6,097,578   $4,355,725   $2,194,306  4&5
21.  SECURED  DEBT       $258,193   $225,680   $191,983   
22.  OTHER  (ATTACH  LIST)                      
23.  TOTAL  POSTPETITION LIABILITIES       $7,477,521   $5,162,485   $3,029,023   
PREPETITION  LIABILITIES                      
24.  SECURED  DEBT  $267,505   $65,035            1
25.  PRIORITY  DEBT  $3,991,351        $90,306   $90,306   
26.  UNSECURED  DEBT  $114,283,485   $1,588,832   $1,588,832   $1,588,832  2
27.  OTHER (ATTACH LIST)                      
28.  TOTAL  PREPETITION  LIABILITIES  $118,542,341   $1,653,867   $1,679,138   $1,679,138   
29.  TOTAL LIABILITIES  $118,542,341   $9,131,388   $6,841,623   $4,708,161   
EQUITY                         
30.  PREPETITION  OWNERS'  EQUITY       $(73,722,301)  $(73,722,301)  $(73,722,301)  
31.  POSTPETITION  CUMULATIVE
PROFIT  OR  (LOSS)		       $(7,692,486)  $(7,600,208)  $(7,666,780)  
32.  DIRECT  CHARGES  TO  EQUITY
(ATTACH  EXPLANATION)		       $74,543,320   $76,608,554   $77,591,547  3
33.  TOTAL  EQUITY       $(6,871,467)  $(4,713,955)  $(3,797,534)  
34.  TOTAL  LIABILITIES & OWNERS' EQUITY       $2,259,921   $2,127,668   $910,627   

 

1Property Plant & Equipment included the buildings that were sold per Dkt. 1089. Secured Debt and Taxes Payable included property taxes owed on the buildings that were collected at closing.
2The Schedule Amount for Item 26. Unsecured Debt includes Intercompany Due To/From LPI shown below in Item 32.
3Intercompany Due To/From Life Partners, Inc.
4Item 17. Accounts Payables includes $416,559.40 of invoices from bankruptcy professionals that would normally be included in Item 20. Professional Fees.
5Item 20. Professional Fees reflects expenses accrued in excess of bankruptcy invoices allocated to LPHI. Expenses have been accrued to LPHI where the invoice allocated the expense to one of the subsidiaries, therefore, the books of Life Partners Holdings holds the majority of the liability for bankruptcy professional fees of Life Partners Holdings and its subsidiaries.

 

 

 

 

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-1

 

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11

 

COMPARATIVE BALANCE SHEET

 

      SCHEDULE
AMOUNT		   OCTOBER   NOVEMBER   DECEMBER 
8. OTHER CURRENT ASSETS                    
8.  Pardo Family Holdings Trust (Advance to Price L. Johnson, PC)  $24,441   $31,323   $31,323   $31,323 
8.  Pardo Family Holdings Trust (Advance to Kyle, Mathis & Lucas, LLP)  $51,975   $53,343   $53,343   $53,343 
8.  Rent due from Life Partners, Inc.                    
8.                       
8.                       
8.                       
8.                       
8                       
8.  TOTAL - OTHER CURRENT ASSETS  $76,415   $84,665   $84,665   $84,665 
14. OTHER ASSETS - NET OF AMORTIZATION                    
14.  Woolly Mammoth & Other Prehistoric Artifacts  $166,250                
14.                       
14.                       
14.                       
14.                       
14.  TOTAL - OTHER ASSETS (Net of Amort.)  $166,250   $-   $-   $- 
15. OTHER ASSETS                    
15.                       
15.                       
15.                       
15.                       
15.                       
15.                       
15.                       
15.                       
15.                       
15.  TOTAL - OTHER ASSETS  $-   $-   $-   $- 
                        
POSTPETITION LIABILITIES                    
22.                       
22.                       
22.                       
22.                       
22.                       
22.                       
22  TOTAL - OTHER POSTPETITION LIABILITIES       $-   $-   $- 

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-2

 

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11

 

INCOME STATEMENT  SEPTEMBER   OCTOBER   NOVEMBER   DECEMBER   
REVENUES                      
1.  GROSS REVENUES                      
2.  LESS: RETURNS & DISCOUNTS                      
3.  NET REVENUE  $0   $0   $0   $0   
COST OF GOODS SOLD                      
4.  MATERIAL                      
5.  DIRECT LABOR                      
6.  DIRECT OVERHEAD                      
7.  TOTAL COST OF GOODS SOLD  $0   $0   $0   $0   
8.  GROSS PROFIT  $0   $0   $0   $0   
OPERATING EXPENSES                      
9.  OFFICER / INSIDER COMPENSATION                      
10.  SELLING & MARKETING                      
11.  GENERAL & ADMINISTRATIVE  $51,554   $73,439   $16,408   $54,420   
12.  RENT & LEASE  $0   $0   $0   $0   
13.  OTHER (ATTACH LIST)  $15,413   $17,512   $8,894   $1,635  1
14.  TOTAL OPERATING EXPENSES  $66,966   $90,951   $25,302   $56,055   
15.  INCOME BEFORE NON-OPERATING INCOME & EXPENSE  $(66,966)  $(90,951)  $(25,302)  $(56,055)  
OTHER INCOME & EXPENSES                      
16.  NON-OPERATING INCOME (ATTACH LIST)  $(10,000)  $(10,000)  $(1,667)  $0   
17.  NON-OPERATING EXPENSE (ATTACH LIST)  $0   $0   $0   $0   
18.  INTEREST EXPENSE  $31   $798   $29,169   $670   
19.  DEPRECIATION / DEPLETION  $5,718   $5,718   $6,517   $0   
20.  AMORTIZATION  $0   $0   $0   $0   
21.  OTHER (ATTACH LIST)  $(35,447)  $39,133   $(183,151)  $(2,568)  
22.  NET OTHER INCOME & EXPENSES  $(39,698)  $35,649   $(149,132)  $(1,898)  
REORGANIZATION EXPENSES                      
23.  PROFESSIONAL FEES  $(10,929)  $(13,826)  $29,457   $5,861  2
24.  U.S. TRUSTEE FEES  $71   $988   $975   $4,875   
25.  OTHER (ATTACH LIST)  $5,319        $1,121   $1,679  3
26.  TOTAL REORGANIZATION EXPENSES  $(5,540)  $(12,838)  $31,552   $12,415   
27.  INCOME TAX  $10                  
28.  NET PROFIT (LOSS)  $(21,738)  $(113,762)  $92,278   $(66,573)  

 

2Item 23. Professional Fees for October are negative due to reversing fees previously accrued on LPHI where the invoice received allocated the fees to LPI. September Professional Fees are negative due to reversing an excess August accrual.
3See Footnote 2 on Supplement To Accrual Basis-2.

 

 

 

 

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-2

 

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11

 

INCOME STATEMENT  SEPTEMBER   OCTOBER   NOVEMBER   DECEMBER   
OPERATING EXPENSES                      
13.  LEGAL & PROFESSIONAL FEES  $15,413   $17,512   $8,894   $1,635   
13.                         
13.                         
13.                         
13.                         
13.  TOTAL OTHER OPERATING EXPENSES  $15,413   $17,512   $8,894   $1,635   
NON-OPERATING INCOME                      
16.  RENTAL INCOME  $10,000   $10,000   $1,667        
16.  LATE FEE INCOME                      
16.  RENTAL INCOME-AIRPORT HANGAR                      
16.                         
16.                         
16.                         
16.  TOTAL NON-OPERATING INCOME  $10,000   $10,000   $1,667   $0   
OTHER INCOME & EXPENSES                      
21.  GAIN ON SALE OF AIRPORT HANGAR  $(35,447)                1
21.  LOSS ON SALE OF ICE AGE COLLECTION       $39,133             
21.  GAIN ON SALE OF BUILDINGS            $(196,072)       
21.  FRANCHISE TAX EXPENSE            $12,921   $(2,568)  
21.  INTEREST INCOME                      
21.  NET OTHER INCOME & EXPENSES  $(35,447)  $39,133   $(183,151)  $(2,568)  
REORGANIZATION EXPENSES                      
25.  TRANSCRIPTION SERVICES  $669        $58        
25.  RELATIVITY HOSTING  $3,750        $1,062   $1,679  2
25.  PRIVILEGE LOG EXPORT  $900                 2
25.  IT SERVICES-SYSTEM BACKUP                      
25.  SECURITY OFFICERS                      
25.  TOTAL OTHER REORGANIZATION EXPENSES  $5,319   $0   $1,121   $1,679   

 

1Item 21 (September). The airport hangar was carried on the books of Life Partners, Inc., but was owned by LPHI, therefore, the corresponding reduction in assets shows on Life Partners, Inc. MOR-1
2In previous months, this was shown as part of Item 23. Professional Fees on MOR-2 and has been reclassed this month to Item 25. Other Reorganization Expenses.

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-3

 

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11

 

CASH RECEIPTS AND DISBURSEMENTS  OCTOBER   NOVEMBER   DECEMBER   QUARTER  
1.  CASH - BEGINNING OF MONTH  $326,670   $354,758   $1,605,186       
RECEIPTS FROM OPERATIONS                     
2.  CASH SALES                 $0  
COLLECTION OF ACCOUNTS RECEIVABLE                     
3.  PREPETITION                 $0  
4.  POSTPETITION                 $0  
5.  TOTAL OPERATING RECEIPTS  $0   $0   $0   $0  
NON-OPERATING RECEIPTS                     
6.  LOANS & ADVANCES (ATTACH LIST)                 $0  
7.  SALE OF ASSETS  $67,117   $1,389,341        $1,456,458  1
8.  OTHER (ATTACH LIST)  $10,000   $1,667   $0   $11,667  
9.  TOTAL NON-OPERATING RECEIPTS  $77,117   $1,391,008   $0   $1,468,125  
10.  TOTAL RECEIPTS  $77,117   $1,391,008   $0   $1,468,125  
11.  TOTAL CASH AVAILABLE  $403,787   $1,745,766   $1,605,186   $1,468,125  
OPERATING DISBURSEMENTS                     
12.  NET PAYROLL                 $0  
13.  PAYROLL TAXES PAID                 $0  
14.  SALES, USE & OTHER TAXES PAID       $11,510        $11,510  
15.  SECURED / RENTAL / LEASES                 $0  
16.  UTILITIES                 $0  
17.  INSURANCE  $34,572   $35,255   $35,250   $105,077  
18.  INVENTORY PURCHASES                 $0  
19.  VEHICLE EXPENSES                 $0  
20.  TRAVEL                 $0  
21.  ENTERTAINMENT                 $0  
22.  REPAIRS & MAINTENANCE                 $0  
23.  SUPPLIES                 $0  
24.  ADVERTISING                 $0  
25.  OTHER (ATTACH LIST)  $12,299   $4,105   $11,169   $27,573  
26.  TOTAL OPERATING DISBURSEMENTS  $46,871   $50,870   $46,419   $144,160  
REORGANIZATION EXPENSES                     
27.  PROFESSIONAL FEES  $947   $89,652   $1,129,446   $1,220,045  
28.  U.S. TRUSTEE FEES  $650             $650  
29.  OTHER (ATTACH LIST)  $562   $58   $0   $620  
30.  TOTAL REORGANIZATION EXPENSES  $2,159   $89,710   $1,129,446   $1,221,315  
31.  TOTAL DISBURSEMENTS  $49,030   $140,580   $1,175,865   $1,365,475  
32.  NET CASH FLOW  $28,087   $1,250,428   $(1,175,865)  $102,650  
33.  CASH - END OF MONTH  $354,758   $1,605,186   $429,321       

 

1Item 7. Sale of Assets for November includes proceeds received from the sale of the buildings net of closing costs & property taxes. October includes proceeds from the sale of the Ice Age Collection, and September includes $208,996.12 received from the sale of the airplane hangar and a $60,000 down payment on the sale of the Ice Age Collection.

 

 

 

  

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-3

 

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11

 

CASH RECEIPTS AND DISBURSEMENTS  OCTOBER   NOVEMBER   DECEMBER   QUARTER 
                    
OTHER NON-OPERATING RECEIPTS                    
8.  Lease & Rental Income  $10,000   $1,667        $11,667 
8.  Return of Retainer                    
8.  Worker's Compensation Dividend                 $- 
8.  Total - Non-Operating Receipts  $10,000   $1,667   $-   $11,667 
                        
OTHER OPERATING DISBURSEMENTS                    
25.  Registrar & Transfer Fees  $1,050   $2,100   $1,150   $4,300 
25  Penalty Interest on 2014 Property Taxes                 $- 
25.  Filing Fees       $820   $10,019   $10,839 
25.  Web Page Hosting  $11,249   $1,185        $12,434 
25.  Bank Acct Analysis Fee                 $- 
25.  Total - Other Operating Disbursements  $12,299   $4,105   $11,169   $27,573 
                        
OTHER REORGANIZATION EXPENSES                    
29.  Transcription Services  $562   $58        $620 
29.                    $0 
29.  Total - Other Reorganization Expenses  $562   $58   $-   $620 

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-4

 

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11

 

ACCOUNTS RECEIVABLE AGING  SCHEDULE
AMOUNT		   OCTOBER   NOVEMBER   DECEMBER 
                     
1.   0-30                
2.   31-60                    
3.   61-90                    
4.   91+                    
5.   TOTAL ACCOUNTS RECEIVABLE  $0   $0   $0   $0 
6.   AMOUNT CONSIDERED UNCOLLECTIBLE                    
7.   ACCOUNTS RECEIVABLE (NET)  $0   $0   $0   $0 

 

AGING OF POSTPETITION TAXES AND PAYABLES  MONTH:   December 2015 
                        
      0-30   31-60   61-90   91+     
TAXES PAYABLE  DAYS   DAYS   DAYS   DAYS   TOTAL 
1.  FEDERAL                  $0 
2.  STATE                      $0 
3.  LOCAL                      $0 
4.  OTHER (ATTACH LIST)  $8,022                  $8,022 2
5.  TOTAL TAXES PAYABLE  $8,022   $0   $0   $0   $8,022 
                             
6.  ACCOUNTS PAYABLE  $1,635   $282,887   $1,357   $348,832   $634,711 

 

STATUS OF POSTPETITION TAXES      MONTH   December 2015 
                    
      BEGINNING   AMOUNT       ENDING 
      TAX   WITHHELD AND/   AMOUNT   TAX 
FEDERAL  LIABILITY   0R ACCRUED   PAID   LIABILITY 
1.  WITHHOLDING                 $0 
2.  FICA-EMPLOYEE                 $0 
3.  FICA-EMPLOYER                 $0 
4.  UNEMPLOYMENT                 $0 
5.  INCOME                 $0 
6.  OTHER (ATTACH LIST)                 $0 
7.  TOTAL FEDERAL TAXES  $0   $0   $0   $0 
STATE AND LOCAL                    
8.  WITHHOLDING                 $0 
9.  SALES                 $0 
10.  EXCISE                 $0 
11.  UNEMPLOYMENT                 $0 
12.  REAL PROPERTY  $0             $0 1
13.  PERSONAL PROPERTY                 $0 
14.  OTHER (ATTACH LIST)  $10,590   $(2,568)       $8,022 2
15.  TOTAL STATE & LOCAL  $10,590   $(2,568)  $0   $8,022 
16.  TOTAL TAXES  $10,590   $(2,568)  $0   $8,022 

 

1All property taxes for calendar 2014 & 2015 were paid at the closing on the sale of the buildings.
2This is Texas Franchise Tax previously shown on LPI books. This does not include $90,305.59 considered prepetition.

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-5

 

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11

 

BANK RECONCILIATIONS     MONTH:   December 2015 
                    
      Account #1   Account #2   Account #3     
A.  BANK:  Bank of America   Alliance Bank   Bank of Texas     
B.  ACCOUNT NUMBER:  3363   613   3772   TOTAL 
C.  PURPOSE (TYPE):  DIP Account   MoneyMarket   Checking     
1.  BALANCE PER BANK STATEMENT            $430,426   $430,426 
2.  ADD: TOTAL DEPOSITS NOT CREDITED                 $0 
3.  SUBTRACT: OUTSTANDING CHECKS            $1,105   $1,105 
4.  OTHER RECONCILING ITEMS                 $0 
5.  MONTH END BALANCE PER BOOKS  $0   $0   $429,321   $429,321 
6.  NUMBER OF LAST CHECK WRITTEN   1013         1045      

 

INVESTMENT ACCOUNTS

 

      DATE OF   TYPE OF   PURCHASE   CURRENT 
BANK, ACCOUNT NAME & NUMBER  PURCHASE   INSTRUMENT   PRICE   VALUE 
7.                   
8.                       
9.                       
10.                       
11.  TOTAL INVESTMENTS            $0   $0 

 

CASH

 

12.  CURRENCY ON HAND  $0 
         
13.  TOTAL CASH - END OF MONTH  $429,321 

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-6

 

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11

 

  MONTH: December 2015

 

PAYMENTS TO INSIDERS AND PROFESSIONALS

 

INSIDERS
      TYPE OF   AMOUNT   TOTAL PAID 
   NAME  PAYMENT   PAID   TO DATE 
1.              
2.                  
3.                  
4.                  
5.                  
6.  TOTAL PAYMENTS TO INSIDERS       $0   $0 

 

PROFESSIONALS
      DATE OF COURT              TOTAL 
      ORDER AUTHORIZING  AMOUNT   AMOUNT   TOTAL PAID   INCURRED 
   NAME  PAYMENT  APPROVED   PAID   TO DATE   & UNPAID 
1.  Asset Servicing Group  12/15/15  $756,817   $412,683   $756,817   $149,5192&4
2.  Bridgepoint Consulting  12/15/15  $673,261   $602,889   $673,261   $200,7832&4
3.  Epiq Bankruptcy Solutions  05/22/15  $2,450,530   $252,894   $2,343,973   $131,5571&2
4.  Forshey & Prostok, LLP  04/28/15  $154,409        $154,409   $01
5.  Kevin Buchanan & Associates  07/01/15  $140,235        $140,235   $02
6.  Kim Hinkle, Attorney at Law  12/15/15  $200,377   $119,969   $200,377   $26,9712&4
7.  MMS Advisors                    $346,992
8.  Munsch, Hardt, Kopf & Harr, P.C.  12/15/15  $1,673,802   $1,076,349   $1,673,802   $251,3162&4
9.  Phillips Murrah  12/15/15  $152,051   $70,006   $152,051   $12,9712&4
10.  Pronske Goolsby & Kathman, P.C.  05/05/15  $128,618        $128,618   $01
11.  Thompson & Knight, LLP  12/15/15  $8,304,511   $5,837,850   $8,307,945   $1,361,7662,4&5
12.  Tom Moran, US Trustee  12/18/15  $11,850   $11,850   $11,850   $583,4802&6
13.  Smith, Jackson, Boyer & Bovard, PLLC  12/18/15  $55,199   $47,736   $55,199   $6,4512&4
14.  Predictive Resources  11/19/15  $92,121   $92,121   $92,121   $111,3482&4
15.  D3G Capital Management LLC/Lewis & Ellis Inc  12/03/15  $88,912   $88,912   $88,912   $101,6632&4
16.  Barbara Pope  12/15/15  $42,477   $42,477   $42,477   $02&7
17.  TOTAL PAYMENTS TO PROFESSIONALS          $8,655,736   $14,822,047   $3,284,819 

 

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS

 

      SCHEDULED   AMOUNTS     
      MONTHLY   PAID   TOTAL 
      PAYMENTS   DURING   UNPAID 
   NAME OF CREDITOR  DUE   MONTH   POSTPETITION 
1.  Bank Direct Capital Finance  $1,105   $2,210   $1,100 
2.  First Insurance Funding Corp.  $32,116   $32,116   $190,883 
3.                  
4.                  
5.                  
6.  TOTAL  $33,221   $34,326   $191,983 

 

1Total Paid To Date includes retainers paid in prior months by Life Partners, Inc.
2Amount Paid was paid by LPI except $1,129,446.39 of the amount paid to Thompson & Knight which was paid by LPHI.
3Professional fees and expenses estimated and accrued prior to May 19th are reflected only on the books of Life Partners Holdings, Inc.  Thereafter, professional fees and expenses reflect the estimated aggregate, unallocated fees and expenses for all of the Debtors, and are noted on each of the Debtors MORs.
4Amount Paid also includes payments authorized by Fee Procedure Orders dated 8/6/15 and 10/29/15.
5Total Paid To Date for Thompson & Knight includes $3,434 in filing fees paid twice (at the time of filing and when the fee application was paid) which is not duplicated in Amount Approved.
6Total Paid To Date excludes out-of-pocket expense reimbrusements on behalf of subsidiary debtors.
7Amounts shown are for Fee Applications only and do not include subsequent employee/contractor payments.

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-7

 

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11

 

  MONTH: December 2015

 

QUESTIONNAIRE

 

      YES   NO
1. HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?       X
2. HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?       X
3. ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?       X
4. HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?       X
5. HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?   X    
6. ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?       X
7. ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?       X
8. ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?       X
9. ARE ANY OTHER POSTPETITION TAXES PAST DUE?       X
10. ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?   X    
11. HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?       X
12. ARE ANY WAGE PAYMENTS PAST DUE?       X

 

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

 

Questionnaire Item 5. A postpetition loan was received from First Insurance Funding Corp. to finance D&O and E&O insurance premiums. Loans were received from maturities of Life Settlements per Docker 1127 related to financing.

Questionnaire Item 10. Past due amounts are mainly fees from non-bankruptcy professionals incurred after the filing date.

 

 

INSURANCE

 

      YES   NO
1. ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?   X    
2. ARE ALL PREMIUM PAYMENTS PAID CURRENT?   X    
3. PLEASE ITEMIZE POLICIES BELOW.        

 

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.

 

 

 

INSTALLMENT PAYMENTS

 

TYPE OF           PAYMENT AMOUNT
POLICY   CARRIER   PERIOD COVERED   & FREQUENCY
Directors & Officers   Illinois National   09/30/15- 09/30/16      
Errors & Omissions   Indian Harbor   09/30/15- 09/30/16      
Total for Financed thru   First Insurance Funding Corp       $ 32,116.09 /month
Commercial Package*   Allied Insurance   06/14/15 - 06/13/16   $ 923.79 /month
Cyber Liability   Beazley Insurance   05/12/15 - 06/12/16   $ 1,104.82 /month

 

* includes auto, building, edp, excess liability

 

 



 

Exhibit 99.2

 

  Monthly Operating Report
  ACCRUAL BASIS

 

CASE NAME: Life Partners, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)
   
JUDGE: Russell Nelms

 

UNITED STATES BANKRUPTCY COURT

 

NORTHERN & EASTERN DISTRICTS OF TEXAS

 

REGION 6

 

MONTHLY OPERATING REPORT

 

MONTH ENDING: December   2015  
  MONTH   YEAR  

 

IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT, AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY) IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.

 

RESPONSIBLE PARTY:    
     
/s/ H. Thomas Moran II   Trustee
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY   TITLE
     
H. Thomas Moran II   1/19/2016
PRINTED NAME OF RESPONSIBLE PARTY   DATE
     
PREPARER:    
     
/s/ Colette Pieper   CEO
ORIGINAL SIGNATURE OF PREPARER   TITLE
     
Colette Pieper   1/19/2016
PRINTED NAME OF PREPARER   DATE

 

 

 

 

 

Monthly Operating Report
ACCRUAL BASIS-1

 

CASE NAME: Life Partners, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

COMPARATIVE BALANCE SHEET

 

      SCHEDULE
AMOUNT		   OCTOBER   NOVEMBER   DECEMBER 
ASSETS                    
1.  UNRESTRICTED CASH  $295,821   $228,824   $639,314   $293,414 
2.  RESTRICTED CASH  $101,555   $7   $7   $7 
3.  TOTAL CASH  $397,376   $228,831   $639,322   $293,421 
4.  ACCOUNTS RECEIVABLE (NET)  $143,949   $133,532   $133,532   $133,532 
5.  INVENTORY                    
6.  NOTES RECEIVABLE  $8,912                
7.  PREPAID EXPENSES  $343,387   $122,207   $99,366   $76,002 
8.  OTHER (ATTACH LIST)  $49,475   $54,434   $54,317   $54,200 
9.  TOTAL CURRENT ASSETS  $943,098   $539,004   $926,536   $557,154 
10.  PROPERTY, PLANT & EQUIPMENT       $1,996,382   $1,996,382   $1,954,154 6
11.  LESS: ACCUMULATED DEPRECIATION/DEPLETION       $(1,881,353)  $(1,887,714)  $(1,852,007) 6
12.  NET PROPERTY, PLANT & EQUIPMENT  $299,672   $115,029   $108,667   $102,147 
13.  DUE FROM INSIDERS  $74,265,951   $0   $0   $0 
14.  OTHER ASSETS - NET OF AMORTIZATION (ATTACH LIST)  $662,950   $0   $0   $0 
15.  OTHER (ATTACH LIST)  $13,513,629   $13,917,492   $14,158,827   $14,559,654 
16.  TOTAL ASSETS  $89,685,300   $14,571,525   $15,194,031   $15,218,955 
POSTPETITION LIABILITIES                    
17.  ACCOUNTS PAYABLE       $1,866,555   $969,423   $602,2444
18.  TAXES PAYABLE       $90,454   $86,726   $75,9175
19.  NOTES PAYABLE       $0   $0   $0 
20.  PROFESSIONAL FEES       $4,942,561   $4,807,620   $66,923 4&7
21.  SECURED DEBT       $0   $0   $0 
22.  OTHER (ATTACH LIST)       $5,179,974   $11,509,046   $18,967,484 
23.  TOTAL POSTPETITION LIABILITIES       $12,079,543   $17,372,815   $19,712,567 
PREPETITION LIABILITIES                    
24.  SECURED DEBT   undetermined   $5,976   $5,976   $5,976 2
25.  PRIORITY DEBT   undetermined   $90,306   $0   $0 3
26.  UNSECURED DEBT  $9,203,450   $686,588   $686,588   $686,588 
27.  OTHER (ATTACH LIST)       $0   $0   $0 
28.  TOTAL PREPETITION LIABILITIES  $9,203,450   $782,869   $692,564   $692,564 
29.  TOTAL LIABILITIES  $9,203,450   $12,862,412   $18,065,378   $20,405,131 
EQUITY                    
30.  PREPETITION OWNERS' EQUITY        $78,978,770   $78,978,770   $78,978,770 
31.  POSTPETITION CUMULATIVE PROFIT OR (LOSS)       $(9,440,896)  $
(11,835,724		)  $13,457,560)
32.  DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)       $(67,828,761)  $(70,014,393)  $(70,707,385) 1
33.  TOTAL EQUITY       $1,709,113   $(2,871,347)  $(5,186,175)
34.  TOTAL LIABILITIES & OWNERS' EQUITY       $14,571,525   $15,194,031   $15,218,955 

 

1This includes the following intercompany amounts shown below. The Schedule Amount related to this is shown under Item 13. Due From Insiders.

 

Due from Life Partners Holdings, Inc.  $77,591,547.43 
Due from LPHI Management Services  $11,719.74 
Due to LPI Financial Services, Inc.  $(6,895,881.84)
   $70,707,385.33 

 

2Item 24. Secured Debt is accrued property taxes for the prepetition period of Jan. 1, 2015 thru May 19, 2015.
3Item 25. Priority Debt -This prepetition liability for Texas Franchise Tax has been moved to LPHI's books.
4Item 17. Accounts Payables includes $574,888.49 of invoices from bankruptcy professionals that would normally be included in Item 20. Professional Fees.
5Accrued personal property taxes includes an adjustment to taxes as a result of the taxing authority changing the valuation of the airplane held on 1/1/15.
6Reduction in Property Plant & Equipment is due to obsolete computer equipment disposed of and written off.
7Item 20. Professional Fees reflects expenses accrued in excess of bankruptcy invoices allocated to LPI. Invoices have been allocated to LPI where the expense was accrued on the books of Life Partners Holdings, Inc., therefore, the books of Life Partners Holdings holds the majority of the liability for bankruptcy professional fees.

 

 

 

 

Monthly Operating Report
SUPPLEMENT TO
ACCRUAL BASIS-1

 

CASE NAME: Life Partners, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

COMPARATIVE BALANCE SHEET

 

      SCHEDULE
AMOUNT		   OCTOBER   NOVEMBER   DECEMBER 
8. OTHER CURRENT ASSETS                    
8.  Pardo Family Holdings Trust (Advance to Price L. Johnson, PC)  $25,000   $25,000   $25,000   $25,000 
8.  Pardo Family Holdings Trust (Advance to Kyle, Mathis & Lucas, LLP)  $15,505   $15,505   $15,505   $15,505 
8.  ESP Communications Duplicate Payment  $7,500   $7,500   $7,500   $7,500 
8.  Advance Trust & Life Escrow Services, LTA (Abandonment Premiums)       $5,064   $5,064   $5,064 
8.  Purchase Escrow Services (Abandonment Premiums)       $-   $-   $- 2
8.  Employee Advances  $992   $0   $0   $0 
8.  Notes Receivable-Employee  $477   $1,365   $1,248   $1,130 
8                       
8.  TOTAL - OTHER CURRENT ASSETS  $49,475   $54,434   $54,317   $54,200 
14. OTHER ASSETS - NET OF AMORTIZATION                    
14.  Woolly Mammoth & Other Prehistoric Artifacts  $662,950   $-   $-   $- 1
14.                       
14.                       
14.                       
14.                       
14.  TOTAL - OTHER ASSETS (Net of Amort.)  $662,950   $-   $-   $- 
15. OTHER ASSETS                    
15.  TDL, LLC Misappropriation of Foreign Exchange Funds  $257,395                
15.  Advance on Premiums paid by PES on behalf of investors  $13,083,062   $14,029,884   $14,234,508   $14,574,449 
15.  Advance on Premiums paid by ATLES on behalf of investors  $136,291   $273,922   $310,633   $360,250 
15.  Allowance for Bad Debts       $(5,483,317)  $(5,483,317)  $(5,483,317)
15.  Overpayments of Commissions Receivable  $36,881                
15.  Deferred Income Tax Benefit       $4,632,419   $4,632,419   $4,632,419 
15.  Policy Purchase       $123,591   $123,591   $123,591 
15.  Capitalized Premiums on Policies Purchased       $325,436   $325,436   $336,704 
15.  Deposits       $15,558   $15,558   $15,558 
15.  TOTAL - OTHER ASSETS  $13,513,629   $13,917,492   $14,158,827   $14,559,654 
                        
POSTPETITION LIABILITIES                    
22.  Accrued Payroll       $58,048   $62,244   $29,808 
22.  Accrued Vacation       $89,485   $86,131   $81,675 
22.  Accrued 401K       $4,034   $3,941   $0 
22.  401K Loan       $741   $730   $0 
22.  Child Support & PR Garnishment       $152   $0   $0 
22.  Loan From Maturities (Dkt 1127)            $6,328,486   $13,828,486 
22.  Deferred Revenue       $5,027,515   $5,027,515   $5,027,515 
22  TOTAL - OTHER POSTPETITION LIABILITIES       $5,179,974   $11,509,046   $18,967,484 

 

1Sold pursuant to court order Dkt.1053
2These Abandonment Premiums were collected back from PES in October.

 

 

 

 

 

  Monthly Operating Report
  ACCRUAL BASIS-2

 

CASE NAME: Life Partners, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

INCOME STATEMENT  SEPTEMBER   OCTOBER   NOVEMBER   DECEMBER 
REVENUES                    
1.  GROSS REVENUES                    
2.  LESS: RETURNS & DISCOUNTS                    
3.  NET REVENUE  $0   $0   $0   $0 
COST OF GOODS SOLD                    
4.  MATERIAL  $0   $0   $0   $0 
5.  DIRECT LABOR  $0   $0   $0   $0 
6.  DIRECT OVERHEAD  $17,060   $6,784   $4,278   $15,471 
7.  TOTAL COST OF GOODS SOLD  $17,060   $6,784   $4,278   $15,471 
8.  GROSS PROFIT  $(17,060)  $(6,784)  $(4,278)  $(15,471)
OPERATING EXPENSES                    
9.  OFFICER / INSIDER COMPENSATION  $30,165   $30,165   $28,794   $33,223 
10.  SELLING & MARKETING  $0   $0   $0   $0 
11.  GENERAL & ADMINISTRATIVE  $270,143   $275,276   $254,337   $288,595 
12.  RENT & LEASE  $14,178   $19,571   $14,940   $24,148 
13.  OTHER (ATTACH LIST)  $8,558   $26,125   $23,846   $41,952 
14.  TOTAL OPERATING EXPENSES  $323,044   $351,138   $321,916   $387,919 
15.  INCOME BEFORE NON-OPERATING INCOME & EXPENSE  $(340,104)  $(357,922)  $(326,195)  $(403,389)
OTHER INCOME & EXPENSES                    
16.  NON-OPERATING INCOME (ATTACH LIST)  $(8,929)  $70,816   $(3,868)  $(3,604) 1
17.  NON-OPERATING EXPENSE (ATTACH LIST)  $0   $0   $0   $0 
18.  INTEREST EXPENSE  $3   $(3)  $0   $0 
19.  DEPRECIATION / DEPLETION  $6,871   $6,361   $6,361   $6,377 
20.  AMORTIZATION  $0   $0   $0   $0 
21.  OTHER (ATTACH LIST)  $4,082   $(994)  $0   $(2,000)
22.  NET OTHER INCOME & EXPENSES  $2,027   $76,180   $2,493   $774 
REORGANIZATION EXPENSES                    
23.  PROFESSIONAL FEES  $1,807,659   $2,557,607   $2,055,379   $1,201,718 3
24.  U.S. TRUSTEE FEES  $2,956   $7,549   $6,500   $7,000 
25.  OTHER (ATTACH LIST)  $24,800   $1,405   $4,261   $8,955 2
26.  TOTAL REORGANIZATION EXPENSES  $1,835,415   $2,566,561   $2,066,140   $1,217,673 
27.  INCOME TAX                    
28.  NET PROFIT (LOSS)  $(2,177,546)  $(3,000,664)  $(2,394,828)  $(1,621,836)

 

1See supplement to MOR-2.
2See Footnote 3 on Supplement To Accrual Basis-2.
3Item 23. Prefessional Fees includes a $330,000 adjustment to fees previously recorded for Thompson & Knight per Docket 1325.

 

 

 

 

  Monthly Operating Report
  SUPPLEMENT TO
  ACCRUAL BASIS-2

 

CASE NAME: Life Partners, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

 

INCOME STATEMENT

  SEPTEMBER   OCTOBER   NOVEMBER   DECEMBER 
OTHER OPERATING EXPENSES                    
13.  Bad Debt Expense                    
13.  Other Expense- Premium Expense  $8,558   $20,546   $12,910   $11,285 
13.  Other Expense- BK Premiums       $5,579   $10,936   $15,738 
13.  Legal & Professional Expense                 $14,929 
13.  Impairment Expense  $-   $-   $-   $- 
13.  TOTAL - OTHER OPERATING EXPENSE  $8,558   $26,125   $23,846   $41,952 
NON-OPERATING INCOME                    
16.  Interest Income  $3,883   $3,753   $3,868   $3,743 
16.  Loss on Disposal of Fixed Assets                 $(143)
16.  Loss on Sale of Ice Age Collection       $(156,067)  $-      
16.  Life Assets Trust S.A. return       $77,998          2
16.  Gain on Sale of Egyptian Replicas       $3,500           
16.  Gain on Sale of Assets  $5,000               1
16.  Other Income  $46   $-   $-   $4 
16.  TOTAL NON-OPERATING INCOME  $8,929   $(70,816)  $3,868   $3,604 
NON-OPERATING EXPENSE                    
17.          $-   $-   $- 
17.                       
17.                       
17.                       
17.  TOTAL NON-OPERATING EXPENSE  $-   $-   $-   $- 
OTHER EXPENSE                    
21.  Franchise Tax  $4,082   $(994)  $-   $- 
21.  State Income Tax-Other  $-   $-   $-   $(2,000)
21.                       
21.                       
21.                       
21.  TOTAL OTHER EXPENSE  $4,082   $(994)  $-   $(2,000)
OTHER REORGANIZATION EXPENSES                    
25.  Transcription Services                    
25.  Relativity Hosting  $20,000   $1,405   $4,261   $8,955 3
25.  Privilege Log Export  $4,800               3
25.                       
25.  TOTAL OTHER REORGANIZATION EXP  $24,800   $1,405   $4,261   $8,955 

 

1Gain on sale of foxcart equipment sold along with the airport hangar pursuant to court order.
2This is Life Partners' portion of the settlement reached between Life Assets Trust S.A.and Portigon Ag, New York Branch, due to the bank foreclosing on the assets of Life Assets Trust SA. Life Partners owned approximately 19.91% of Life Assets Trust S.A. Compartment A.
3In previous months, this was shown as part of Item 23. Professional Fees on MOR-2 and has been reclassed this month to Item 25. Other Reorganization Expenses.

 

 

 

 

 

 

  Monthly Operating Report
  ACCRUAL BASIS-3

 

CASE NAME: Life Partners, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

CASH RECEIPTS AND DISBURSEMENTS  OCTOBER   NOVEMBER   DECEMBER   QUARTER 
1.  CASH - BEGINNING OF MONTH  $343,712   $228,831   $639,322      
RECEIPTS FROM OPERATIONS                    
2.  CASH SALES                 $0 
COLLECTION OF ACCOUNTS RECEIVABLE                    
3.  PREPETITION                 $0 
4.  POSTPETITION  $32,926   $193,847   $137,964   $364,737 
5.  TOTAL OPERATING RECEIPTS  $32,926   $193,847   $137,964   $364,737 
NON-OPERATING RECEIPTS                    
6.  LOANS & ADVANCES (ATTACH LIST)       $6,328,486   $7,500,000   $13,828,486 
7.  SALE OF ASSETS  $510,383             $510,383 1
8.  OTHER (ATTACH LIST)  $344,381   $9,184   $607,669   $961,235 
9.  TOTAL NON-OPERATING RECEIPTS  $854,764   $6,337,670   $8,107,669   $15,300,104 
10.  TOTAL RECEIPTS  $887,691   $6,531,517   $8,245,633   $15,664,840 
11.  TOTAL CASH AVAILABLE  $1,231,403   $6,760,348   $8,884,954      
OPERATING DISBURSEMENTS                    
12.  NET PAYROLL  $116,986   $117,018   $190,860   $424,865 
13.  PAYROLL TAXES PAID  $38,231   $38,587   $58,647   $135,465 
14.  SALES, USE & OTHER TAXES PAID                 $0 
15.  SECURED / RENTAL / LEASES  $19,756   $15,288   $23,249   $58,293 
16.  UTILITIES  $11,250   $9,797   $7,935   $28,983 
17.  INSURANCE  $2,596   $29,498   $50,944   $83,038 
18.  INVENTORY PURCHASES                 $0 
19.  VEHICLE EXPENSES  $128   $95   $34   $257 
20.  TRAVEL  $3,471   $1,160   $978   $5,609 
21.  ENTERTAINMENT                 $0 
22.  REPAIRS & MAINTENANCE  $2,666   $7,695   $6,470   $16,831 
23.  SUPPLIES  $5,099   $3,256   $3,916   $12,271 
24.  ADVERTISING                 $0 
25.  OTHER (ATTACH LIST)  $779,600   $518,308   $701,125   $1,999,034 
26.  TOTAL OPERATING DISBURSEMENTS  $979,785   $740,703   $1,044,158   $2,764,646 
REORGANIZATION EXPENSES                    
27.  PROFESSIONAL FEES  $13,040   $5,378,918   $7,536,104   $12,928,062 
28.  U.S. TRUSTEE FEES  $9,747             $9,747 
29.  OTHER (ATTACH LIST)       $1,405   $11,271   $12,676 
30.  TOTAL REORGANIZATION EXPENSES  $22,787   $5,380,323   $7,547,375   $12,950,485 
31.  TOTAL DISBURSEMENTS  $1,002,572   $6,121,026   $8,591,533   $15,715,131 
32.  NET CASH FLOW  $(114,881)  $410,490   $(345,900)  $(50,291)
33.  CASH - END OF MONTH  $228,831   $639,322   $293,421      

 

1Proceeds from sale of Ice Age Collection and replicas of Egyptian Artifacts pursuant to court order.

 

 

 

 

  Monthly Operating Report
  SUPPLEMENT TO
  ACCRUAL BASIS-3

 

CASE NAME: Life Partners, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

CASH RECEIPTS AND DISBURSEMENTS  OCTOBER   NOVEMBER   DECEMBER   QUARTER 
                    
NON-OPERATING RECEIPTS-LOANS AND ADVANCES                    
6.  Loan From Maturities (Dkt 1127)         $6,328,486   $7,500,000   $13,828,486 
6.                    $- 
6.  Total Loans and Advances  $-   $6,328,486   $7,500,000   $13,828,486 
                        
NON-OPERATING RECEIPTS-OTHER                    
8.  A/R Collections-Abandonment Refunds  $6,198             $6,198 
8.  Flow Thru Premiums & Platform Fees  $5,372   $5,289        $10,661 
8.  Transfer From LPIFS Checking Acct# 4069  $250,000        $600,000   $850,000 
8.  Interest Income  $3,747   $3,864   $3,740   $11,351 
8.  Other Inc-dividends on pd out policies            $4   $4 
8.  Other Income-Life Assets Trust S.A. Settlement  $77,998             $77,998 
8.  Return of retainer                 $- 
8.  Reimbursements & Refunds-COBRA insurance  $977        $1,904   $2,881 
8.  Reimbursements & Refunds-Employee Advance  $25   $25        $50 
8.  Reimbursements & Refunds-License & Fees                 $- 
8.  Reimbursements & Refunds-Tax            $2,000   $2,000 
8.  Reimbursements & Refunds-Travel                 $- 
8.  Reimbursements & Refunds-Utilities  $30   $5        $35 
8.  Reimbursements & Refunds-Other  $35        $21   $57 
8.  Total Other Non-Operating Receipts  $344,381   $9,184   $607,669   $961,235 
                        
OTHER OPERATING DISBURSEMENTS                    
25.  Premiums Advanced  $715,090   $448,091   $538,807   $1,701,989 
25.  Premiums-LPI Owned positions            $35,911   $35,911 
25.  Bank Fees (Charged & Reversed)  $590   $606   $918   $2,114 
25.  BK Premiums  $5,579   $10,936   $15,738   $32,253 
25.  Courier Services  $3,171   $1,740   $795   $5,706 
25.  Employee Relations  $200        $2,160   $2,360 
25.  Flow Thru Premiums  $9,287   $5,289   $-   $14,577 
25.  Licenses & Fees  $1,894   $2,103   $215   $4,212 
25.  Medical Records       $1,300   $9,179   $10,479 
25.  Medical Review Life Expectancy                 $- 
25.  Outside Services  $1,669   $1,547   $2,305   $5,522 
25.  Payroll Garnishment  $304   $304   $-   $607 
25.  Payroll-401K deductions  $9,464   $9,506   $15,724   $34,694 
25.  PES Operating Exp       $30,765   $44,455   $75,220 
25.  Software Licenses & Support  $4,080   $564   $231   $4,875 
25.  Policy Administration Expense  $20,135   $4,712   $32,586   $57,433 
25.  Refund Duplicate Payments  $845             $845 
25.  Subscriptions  $507   $288   $1,975   $2,770 
25.  Trust Fees/Cost Reimbursement  $6,784   $532   $100   $7,416 
25.  Employee Loan & Advances       $25   $25   $50 
25.  Total - Other Operating Disbursements  $779,600   $518,308   $701,125   $1,999,034 
                        
OTHER REORGANIZATION EXPENSES                    
29.  Transcription Services                 $- 
29.  Relativity Hosting  $-   $1,405   $11,271   $12,676 
29.  Privilege Log Export                 $- 
29.  Total - Other Reorganization Expenses  $-   $1,405   $11,271   $12,676 

 

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-4

 

CASE  NAME: Life Partners, Inc.
   
CASE  NUMBER: 15-40289 (Jointly Administered)

 

ACCOUNTS  RECEIVABLE  AGING  SCHEDULE
AMOUNT		   OCTOBER   NOVEMBER   DECEMBER 
1.  0-30  $139,890   $669,205   $241,905   $388,960 
2.  31-60  $279,914   $37,952   $669,196   $241,896 
3.  61-90  $77,762   $6,472   $37,052   $648,665 
4.  91+  $12,721,787   $13,590,176   $13,596,987   $13,655,179 
5.  TOTAL  ACCOUNTS  RECEIVABLE  $13,219,353   $14,303,805   $14,545,140   $14,934,699 1
6.  AMOUNT  CONSIDERED  UNCOLLECTIBLE  $5,163,790   $5,483,317   $5,483,317   $5,483,317 1
7.  ACCOUNTS  RECEIVABLE  (NET)  $8,055,563   $8,820,488   $9,061,823   $9,451,382 1

 

AGING OF POSTPETITION TAXES AND PAYABLES  MONTH:   December 2015 
                        
      0-30   31-60   61-90   91+     
TAXES  PAYABLE  DAYS   DAYS   DAYS   DAYS   TOTAL 
1.  FEDERAL  $0                  $0 
2.  STATE  $0                  $0 
3.  LOCAL  $75,917                  $75,917 
4.  OTHER (ATTACH LIST)                      $0 
5.  TOTAL  TAXES  PAYABLE  $75,917   $0   $0   $0   $75,917 
                             
6.  ACCOUNTS  PAYABLE  $33,715   $564,116   $0   $4,412   $602,244 

 

STATUS OF POSTPETITION TAXES      MONTH:   December 2015 
                    
      BEGINNING   AMOUNT       ENDING 
      TAX   WITHHELD AND/   AMOUNT   TAX 
FEDERAL  LIABILITY   0R ACCRUED   PAID   LIABILITY 
1.  WITHHOLDING  $8,421   $17,879   $26,301   $0 
2.  FICA-EMPLOYEE  $4,556   $11,541   $16,097   $0 
3.  FICA-EMPLOYER  $4,556   $11,541   $16,097   $0 
4.  UNEMPLOYMENT  $0             $0 
5.  INCOME  $0             $0 
6.  OTHER (ATTACH LIST)  $0             $0 
7.  TOTAL  FEDERAL  TAXES  $17,533   $40,962   $58,495   $0 
STATE AND LOCAL                    
8.  WITHHOLDING                 $0 
9.  SALES                 $0 
10.  EXCISE                 $0 
11.  UNEMPLOYMENT  $101   $51   $152   $0 
12.  REAL  PROPERTY  $0             $0 
13.  PERSONAL  PROPERTY  $69,092   $6,824        $75,917 2
14.  OTHER (ATTACH LIST)  $0             $0 3
15.  TOTAL  STATE  &  LOCAL  $69,193   $6,875   $152   $75,917 
16.  TOTAL  TAXES  $86,726   $47,838   $58,647   $75,917 

 

1These amounts are reported in detail on SUPPLEMENT TO MOR-1 under Item 15. Other Assets.
2The figures shown here do not include $5975.51 accrued for the prepetition period of Jan. 1, 2015 thru May 19, 2015 and include an adjustment to the calendar year 2015 tax accrual resulting from the taxing authority changing the valuation of the aircraft held on 1/1/15.
3Item 14. Other is accrual of Texas Franchise Tax and has been moved to LPHI books.

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-5

 

CASE NAME: Life Partners, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

BANK  RECONCILIATIONS      MONTH:   December 2015 
                
      Account #1   Account #2   Account #3     
A.  BANK:  Bank of Texas   Bank of Texas         
B.  ACCOUNT  NUMBER:  4080   4091       TOTAL 
C.  PURPOSE  (TYPE):  Checking   Checking         
1.  BALANCE  PER  BANK  STATEMENT  $136,962   $276,038        $413,000 
2.  ADD:  TOTAL  DEPOSITS  NOT  CREDITED                 $0 
3.  SUBTRACT:  OUTSTANDING  CHECKS  $49,278   $73,233        $122,512 
4.  OTHER  RECONCILING  ITEMS                 $0 
5.  MONTH  END  BALANCE  PER  BOOKS  $87,684   $202,804   $0   $290,488 
6.  NUMBER  OF  LAST  CHECK  WRITTEN   1729    1017           

 

INVESTMENT ACCOUNTS

 

      DATE OF   TYPE OF   PURCHASE   CURRENT 
BANK,  ACCOUNT  NAME  &  NUMBER  PURCHASE   INSTRUMENT   PRICE   VALUE 
7.  TD Bank, Life Partners, Inc. Acct 70-T202-01-2   unknown    MoneyMarket       $7 
8.                       
9.                       
10.                       
11.  TOTAL  INVESTMENTS            $0   $7 

 

CASH

 

12.  CURRENCY ON HAND  $2,926.241
         
13.  TOTAL  CASH  -  END  OF MONTH  $293,421 

 

1  Item 12. Currency On Hand includes:  Petty Cash  $1,000.00   
   PayPal  $396.21   
   Prepaid Visa  $1,530.03   

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-6

 

CASE  NAME: Life Partners, Inc.
   
CASE  NUMBER: 15-40289 (Jointly Administered)

 

PAYMENTS  TO  INSIDERS  AND  PROFESSIONALS   MONTH: December 2015

 

INSIDERS
      TYPE  OF  AMOUNT   TOTAL PAID 
   NAME  PAYMENT  PAID   TO DATE 
1.  Mark Embry  Salaries/Expense Reimbursement  $20,942   $95,859 
2.  Advance Trust & Life Escrow Svcs  Premium Remittance/Cost Reimb  $49,717   $362,211 
3.  Life Partners Holdings, Inc.  Rent & Return deposit in error       $113,565 
4.  LPI Financial Services, Inc.  Forward Platform Fees       $2,037 
5.  Purchase Escrow Services, LLC  Premium Remittance/Cost Reimb  $568,654   $2,787,621 
6.  Colette Pieper  Salaries/Expense Reimbursement  $21,692   $101,637 
7.  Debora J. Carr  Salaries/Expense Reimbursement  $6,375   $27,000 
8.  TOTAL  PAYMENTS TO  INSIDERS     $667,381   $3,489,931 

 

PROFESSIONALS2
      DATE  OF  COURT              TOTAL 
      ORDER AUTHORIZING  AMOUNT   AMOUNT   TOTAL PAID   INCURRED 
   NAME  PAYMENT  APPROVED   PAID   TO  DATE   & UNPAID 
1.  Asset Servicing Group  12/15/15  $756,817   $412,683   $756,817   $149,5194
2.  Bridgepoint Consulting  12/15/15  $673,261   $602,889   $673,261   $200,7834
3.  Epiq Bankruptcy Solutions  05/22/15  $2,450,530   $252,894   $2,343,973   $131,5574
4.  Kim Hinkle, Attorney at Law  12/15/15  $200,377   $119,969   $200,377   $26,9714
5.  MMS Advisors                    $217,6003
6.  Munsch, Hardt, Kopf & Harr,P.C.  12/15/15  $1,673,802   $1,076,349   $1,673,802   $251,3164
7.  Thompson & Knight LLP  12/15/15  $8,304,511   $5,837,850   $8,307,945    $1,361,7664,5&6
8.  Tom Moran, US Trustee  12/18/15  $11,850   $11,850   $11,850   $472,7508
9.  Phillips Murrah  12/15/15  $152,051   $70,006   $152,051   $12,9714
10.  Smith, Jackson, Boyer & Brovard, PLLC  12/18/15  $55,199   $47,736   $55,199   $6,4514
11.  Predictive Resources  11/19/15  $92,121   $92,121   $92,121   $111,3484
12.  D3G/Lewis & Ellis  12/03/15  $88,912   $88,912   $88,912   $101,6634
13.  Barbara Pope  12/15/15  $42,477   $42,477   $42,477   $09
14.  TOTAL  PAYMENTS TO  PROFESSIONALS          $8,655,736   $14,398,784   $3,044,696 

 

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS

 

      SCHEDULED   AMOUNTS     
      MONTHLY   PAID   TOTAL 
      PAYMENTS   DURING   UNPAID 
   NAME OF CREDITOR  DUE   MONTH   POSTPETITION 
1.  Pitney Bowes Global Financial Services, LLC  $5,423   $0   $01
2.  Pitney Bowes Global Financial Services, LLC  $906   $0   $01
3.  Johnnies Office Systems, Inc.  $1,055   $1,055   $0 
4.  Great America Financial Services  $2,939   $2,939   $0
5.  PJC Investments, LLC  $10,000   $20,000   $07
6.  TOTAL  $20,323   $23,993   $0 

 

1These lease payments are quarterly, not monthly.
2Professional fees and expenses estimated and accrued prior to May 19th are reflected only on the books of Life Partners Holdings, Inc.  Thereafter, professional fees and expenses reflect the estimated aggregate, unallocated fees and expenses for all of the Debtors, and are noted on each of the Debtors MORs.
3MMS Advisors incurred fees and expenses March 13th - May 18th in the estimated amount of $230,000.00 that are not included here since their retention has not been approved for this period of time.
4Amount Paid also includes payments authorized by Fee Procedure Orders dated 8/6/15 and 10/29/15.
5Amount Paid includes $1,129,446.39 paid by Life Partners Holdings, Inc.
6Total Paid To Date for Thompson & Knight includes $3,434 in filing fees paid twice (at the time of filing and when the fee application was paid) which is not duplicated in Amount Approved.
7Amounts Paid During Month include December and January lease payment.
8Total Paid To Date excludes out-of-pocket expense reimbrusements on behalf of subsidiary debtors.
9Amounts shown are for Fee Applications only and do not include subsequent employee/contractor payments.

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-7

 

CASE  NAME: Life Partners, Inc.
   
CASE  NUMBER: 15-40289 (Jointly Administered)

 

QUESTIONNAIRE MONTH: December 2015

 

      YES   NO
1. HAVE  ANY  ASSETS  BEEN  SOLD  OR  TRANSFERRED  OUTSIDE THE  NORMAL  COURSE  OF  BUSINESS  THIS  REPORTING  PERIOD?       X
2. HAVE  ANY  FUNDS  BEEN  DISBURSED  FROM  ANY  ACCOUNT OTHER  THAN  A  DEBTOR  IN  POSSESSION  ACCOUNT?       X
3. ARE ANY POSTPETITION  RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE  FROM RELATED PARTIES?       X
4. HAVE  ANY  PAYMENTS  BEEN  MADE  ON  PREPETITION  LIABILITIES THIS REPORTING PERIOD?       X
5. HAVE  ANY  POSTPETITION  LOANS  BEEN  RECEIVED BY THE DEBTOR FROM ANY PARTY?   X    
6. ARE  ANY  POSTPETITION  PAYROLL  TAXES  PAST  DUE?       X
7. ARE  ANY  POSTPETITION  STATE  OR  FEDERAL  INCOME  TAXES PAST  DUE?       X
8. ARE  ANY  POSTPETITION  REAL  ESTATE  TAXES  PAST  DUE?       X
9. ARE  ANY OTHER POSTPETITION  TAXES  PAST  DUE?       X
10. ARE  ANY  AMOUNTS  OWED  TO  POSTPETITION  CREDITORS DELINQUENT?       X
11. HAVE  ANY  PREPETITION  TAXES  BEEN  PAID  DURING  THE REPORTING PERIOD?       X
12. ARE ANY WAGE PAYMENTS PAST DUE?       X

 

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED

EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

 

Questionnaire Item 5. Loans were recevied from maturities of Life Settlements per Docket 1127 related to financing.

 

 

 

INSURANCE

 

      YES   NO
1. ARE  WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?   X    
2. ARE  ALL  PREMIUM  PAYMENTS  PAID  CURRENT?   X    
3. PLEASE  ITEMIZE  POLICIES  BELOW.        

 

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.

 

 

 

INSTALLMENT  PAYMENTS
TYPE  OF           PAYMENT AMOUNT
POLICY   CARRIER   PERIOD COVERED   & FREQUENCY
Workers Compensation   Service Lloyds Ins. Co.   06/14/2015- 06/14/2016   $        316.00 /month

 

 



  

Exhibit 99.3

 

  Monthly Operating Report
  ACCRUAL BASIS

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)
   
JUDGE: Russell Nelms

 

UNITED STATES BANKRUPTCY COURT

 

NORTHERN & EASTERN DISTRICTS OF TEXAS

 

REGION 6

 

MONTHLY OPERATING REPORT

 

MONTH ENDING:  December   2015  
  MONTH   YEAR  

 

IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT, AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY) IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.

 

RESPONSIBLE PARTY:

 

/s/ H. Thomas Moran II   Trustee
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY   TITLE
     
H. Thomas Moran II   1/19/2016
PRINTED NAME OF RESPONSIBLE PARTY   DATE
     
PREPARER:    
     
/s/ Colette Pieper   CEO
ORIGINAL SIGNATURE OF PREPARER   TITLE
     
Colette Pieper   1/19/2016
PRINTED NAME OF PREPARER   DATE

 

 

 

 

  Monthly Operating Report
  ACCRUAL BASIS-1

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

COMPARATIVE BALANCE SHEET

 

     

SCHEDULE

AMOUNT

  

MONTH

October 31, 2015

  

MONTH

November 30, 2015

  

MONTH

December 31, 2015

   
                      
ASSETS                      
1.  UNRESTRICTED CASH  $1,744,873   $1,028,203   $1,083,015   $510,400   
2.  RESTRICTED CASH                      
3.  TOTAL CASH  $1,744,873   $1,028,203   $1,083,015   $510,400   
4.  ACCOUNTS RECEIVABLE (NET)  $2,741,107           $0  2
5.  INVENTORY                      
6.  NOTES RECEIVABLE                      
7.  PREPAID EXPENSES                      
8.  OTHER (ATTACH LIST)       $44   $0   $0   
9.  TOTAL CURRENT ASSETS  $4,485,981   $1,028,247   $1,083,015   $510,400   
10.  PROPERTY, PLANT & EQUIPMENT                      
11.  LESS: ACCUMULATED DEPRECIATION/DEPLETION                      
12.  NET PROPERTY, PLANT & EQUIPMENT  $0   $0   $0   $0   
13.  DUE FROM INSIDERS  $4,157,912                 1
14.  OTHER ASSETS - NET OF AMORTIZATION (ATTACH LIST)                      
15.  OTHER (ATTACH LIST)                      
16.  TOTAL ASSETS  $8,643,892   $1,028,247   $1,083,015   $510,400   
POSTPETITION LIABILITIES                      
17.  ACCOUNTS PAYABLE       $0   $1,288   $0   
18.  TAXES PAYABLE                      
19.  NOTES PAYABLE                      
20.  PROFESSIONAL FEES       $298,041   $328,481   $87,407   
21.  SECURED DEBT                      
22.  OTHER (ATTACH LIST)       $325   $5,138   $0   
23.  TOTAL POSTPETITION LIABILITIES       $298,366   $334,907   $87,407   
PREPETITION LIABILITIES                      
24.  SECURED DEBT                      
25.  PRIORITY DEBT   unknown                  
26.  UNSECURED DEBT  $9,001   $1,062   $1,062   $1,062   
27.  OTHER (ATTACH LIST)                      
28.  TOTAL PREPETITION LIABILITIES  $9,001   $1,062   $1,062   $1,062   
29.  TOTAL LIABILITIES  $9,001   $299,428   $335,968   $88,468   
EQUITY                      
30.  PREPETITION OWNERS' EQUITY       $5,901,723   $5,901,723   $5,901,723   
31.  POSTPETITION CUMULATIVE PROFIT OR (LOSS)       $1,553,373   $1,451,203   $1,416,090   
32.  DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)       $(6,726,278)  ($6,605,880)  $(6,895,882) 1
33.  TOTAL EQUITY       $728,819   $747,046   $421,932   
34.  TOTAL LIABILITIES & OWNERS' EQUITY       $1,028,247   $1,083,015   $510,400   

 

1This is Intercompany Due From Life Partners, Inc. reported on Schedule B Item 16 and shown above under Item 13. Due From Insiders.
2The Debtor LPIFS records receipts on a cash basis and accordingly, does not carry receivable balances. The Schedules note a receivable balance as if receipts were recorded on an accrual basis as of the petition date.

 

 

 

 

  Monthly Operating Report
  SUPPLEMENT TO
  ACCRUAL BASIS-1

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

COMPARATIVE BALANCE SHEET

 

      SCHEDULE
AMOUNT		   MONTH
October 31, 2015		   MONTH
November 30, 2015		   MONTH
December 31, 2015		 
                    
CURRENT ASSETS                
8.  PREMIUMS BEING FORWARDED       $44           
8  TOTAL OTHER CURRENT ASSETS       $44   $0   $0 
                        
POSTPETITION LIABILITIES                    
22.  US TRUSTEE FEES       $325   $5,138      
22  TOTAL OTHER POSTPETITION LIABILITIES       $325   $5,138   $0 

 

 

 

 

  Monthly Operating Report
  ACCRUAL BASIS-2

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

INCOME STATEMENT  SEPTEMBER   OCTOBER   NOVEMBER   DECEMBER   
REVENUES                      
1.  GROSS REVENUES  $1,032,009   $214,446   $53,944   $28,943   
2.  LESS: RETURNS & DISCOUNTS                      
3.  NET REVENUE  $1,032,009   $214,446   $53,944   $28,943   
COST OF GOODS SOLD                      
4.  MATERIAL                      
5.  DIRECT LABOR                      
6.  DIRECT OVERHEAD                      
7.  TOTAL COST OF GOODS SOLD  $0   $0   $0   $0   
8.  GROSS PROFIT  $1,032,009   $214,446   $53,944   $28,943   
OPERATING EXPENSES                      
9.  OFFICER / INSIDER COMPENSATION                      
10.  SELLING & MARKETING                      
11.  GENERAL & ADMINISTRATIVE  $375   $26,817   $464   $270   
12.  RENT & LEASE                      
13.  OTHER (ATTACH LIST)                      
14.  TOTAL OPERATING EXPENSES  $375   $26,817   $464   $270   
15.  INCOME BEFORE NON-OPERATING INCOME & EXPENSE  $1,031,634   $187,628   $53,480   $28,673   
OTHER INCOME & EXPENSES                      
16.  NON-OPERATING INCOME (ATTACH LIST)                      
17.  NON-OPERATING EXPENSE (ATTACH LIST)                      
18.  INTEREST EXPENSE                      
19.  DEPRECIATION / DEPLETION                      
20.  AMORTIZATION                      
21.  OTHER (ATTACH LIST)                      
22.  NET OTHER INCOME & EXPENSES  $0   $0   $0   $0   
REORGANIZATION EXPENSES                      
23.  PROFESSIONAL FEES  $96,826   $65,916   $155,296   $63,226   
24.  U.S. TRUSTEE FEES  $0   $4,813   $0   $0   
25.  OTHER (ATTACH LIST)  $1,550   $0   $354   $560  1
26.  TOTAL REORGANIZATION EXPENSES  $98,376   $70,729   $155,650   $63,786   
27.  INCOME TAX                      
28.  NET PROFIT (LOSS)  $933,258   $116,900   $(102,170)  $(35,113)  

 

1Expenses for Relativity Hosting and Privilege Log Export reclassified from Item 23. Professional Fees.

 

 

 

 

  Monthly Operating Report
  ACCRUAL BASIS-3

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

   MONTH   MONTH   MONTH   QUARTER   
CASH RECEIPTS AND DISBURSEMENTS  October 31, 2015   November 30, 2015   December 31, 2015      
1.  CASH - BEGINNING OF MONTH  $1,090,944   $1,028,203   $1,083,015        
RECEIPTS FROM OPERATIONS                      
2.  CASH SALES  $216,308   $53,988   $28,943   $299,238   
COLLECTION OF ACCOUNTS RECEIVABLE                      
3.  PREPETITION                 $0   
4.  POSTPETITION                 $0   
5.  TOTAL OPERATING RECEIPTS  $216,308   $53,988   $28,943   $299,238   
NON-OPERATING RECEIPTS                      
6.  LOANS & ADVANCES (ATTACH LIST)                 $0   
7.  SALE OF ASSETS                 $0   
8.  OTHER (ATTACH LIST)  $8,632   $3,101   $35,496   $47,229   
9.  TOTAL NON-OPERATING RECEIPTS  $8,632   $3,101   $35,496   $47,229   
10.  TOTAL RECEIPTS  $224,939   $57,088   $64,439   $346,467   
11.  TOTAL CASH AVAILABLE  $1,315,883   $1,085,291   $1,147,454        
OPERATING DISBURSEMENTS                      
12.  NET PAYROLL                 $0   
13.  PAYROLL TAXES PAID                 $0   
14.  SALES, USE & OTHER TAXES PAID                 $0   
15.  SECURED / RENTAL / LEASES                 $0   
16.  UTILITIES                 $0   
17.  INSURANCE                 $0   
18.  INVENTORY PURCHASES                 $0   
19.  VEHICLE EXPENSES                 $0   
20.  TRAVEL                 $0   
21.  ENTERTAINMENT                 $0   
22.  REPAIRS & MAINTENANCE                 $0   
23.  SUPPLIES  $25,513           $25,513  1
24.  ADVERTISING                 $0   
25.  OTHER (ATTACH LIST)  $261,842   $2,276   $637,054   $901,173   
26.  TOTAL OPERATING DISBURSEMENTS  $287,355   $2,276   $637,054   $926,686   
REORGANIZATION EXPENSES                      
27.  PROFESSIONAL FEES                 $0   
28.  U.S. TRUSTEE FEES  $325             $325   
29.  OTHER (ATTACH LIST)                 $0   
30.  TOTAL REORGANIZATION EXPENSES  $325   $0   $0   $325   
31.  TOTAL DISBURSEMENTS  $287,680   $2,276   $637,054   $927,011  2
32.  NET CASH FLOW  $(62,741)  $54,812   $(572,615)  $(580,544)  
33.  CASH - END OF MONTH  $1,028,203   $1,083,015   $510,400        

 

1Item 23. Supplies includes $25,000 of postage.
2Total Disbursements includes the following amounts that are NOT disbursements, but are transfers of funds between bank accounts (from LPI Financial Services account to Life Partners, Inc. account) for the periods shown below.

 

October 31, 2015  $254,686.04 
November 30, 2015  $- 
December 31, 2015  $628,957.75 

 

 

 

 

  Monthly Operating Report
  SUPPLEMENT TO
  ACCRUAL BASIS-3

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

   MONTH   MONTH   MONTH   QUARTER 
CASH RECEIPTS AND DISBURSEMENTS  October 31, 2015   November 30, 2015   December 31, 2015    
NON-OPERATING RECEIPTS (OTHER)                    
8.  DIVIDENDS FORWARD TO LPI                 $0 
8.  FLOW THRU PREMIUMS  $3,946   $3,101   $6,538   $13,585 
8.  PREMIUMS RETURNED                 $0 
8.  SPOILED POSTAGE REFUND                 $0 
8.  RECEIPTS TO BE FORWARDED TO LPI  $4,686        $28,958   $33,644 
9.  TOTAL NON-OPERATING RECEIPTS  $8,632   $3,101   $35,496   $47,229 
OPERATING DISBURSEMENTS                    
25.  BANK FEES  $1,294   $454   $270   $2,018 
25.  CREDIT CARD PROCESSING FEES  $10   $10        $20 
25.  DIVIDENDS FORWARD TO LPI                 $0 
25.  FLOW THRU PREMIUMS  $5,852   $1,813   $7,826   $15,491 
25.  PREMIUMS RETURNED                 $0 
25.  TRANSFER TO LPI   $254,686        $628,958   $883,644 
25.  TRANSFER TO LPI BANK ACCOUNT                 $0 
25.  LICENSES & FEES                  $0 
25  TOTAL OPERATING DISBURSEMENTS (OTHER)  $261,842   $2,276   $637,054   $901,173 

 

 

 

 

  Monthly Operating Report
  ACCRUAL BASIS-4

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

ACCOUNTS RECEIVABLE AGING  SCHEDULE
AMOUNT		   MONTH
October 31, 2015		   MONTH
November 30, 2015		   MONTH
December 31, 2015		   
1.  0-30                       
2.  31-60   $803,662                  
3.  61-90                       
4.  91+   $1,937,445                  
5.  TOTAL ACCOUNTS RECEIVABLE  $2,741,107   $0   $0   $0   
6.  AMOUNT CONSIDERED UNCOLLECTIBLE                      
7.  ACCOUNTS RECEIVABLE (NET)  $2,741,107   $0   $0   $0  1

 

AGING OF POSTPETITION TAXES AND PAYABLES MONTH:  December 2015

 

      0-30   31-60   61-90   91+     
TAXES PAYABLE  DAYS   DAYS   DAYS   DAYS   TOTAL 
1.  FEDERAL                      $0 
2.  STATE                      $0 
3.  LOCAL                      $0 
4.  OTHER (ATTACH LIST)                      $0 
5.  TOTAL TAXES  PAYABLE  $0   $0   $0   $0   $0 
                             
6.  ACCOUNTS PAYABLE                      $0 

 

STATUS OF POSTPETITION TAXES MONTH:  December 2015

 

      BEGINNING   AMOUNT       ENDING 
      TAX   WITHHELD AND/   AMOUNT   TAX 
FEDERAL  LIABILITY   0R ACCRUED   PAID   LIABILITY 
1.  WITHHOLDING                 $0 
2.  FICA-EMPLOYEE                 $0 
3.  FICA-EMPLOYER                 $0 
4.  UNEMPLOYMENT                 $0 
5.  INCOME                 $0 
6.  OTHER (ATTACH LIST)                 $0 
7.  TOTAL FEDERAL TAXES  $0   $0   $0   $0 
STATE AND LOCAL                    
8.  WITHHOLDING                 $0 
9.  SALES                 $0 
10.  EXCISE                 $0 
11.  UNEMPLOYMENT                 $0 
12.  REAL PROPERTY                 $0 
13.  PERSONAL PROPERTY                 $0 
14.  OTHER (ATTACH LIST)                 $0 
15.  TOTAL STATE & LOCAL  $0   $0   $0   $0 
16.  TOTAL TAXES  $0   $0   $0   $0 

 

1The Debtor LPIFS records receipts on a cash basis and accordingly, does not carry receivable balances. The Schedules note a receivable balance as if receipts were recorded on an accrual basis as of the petition date.

 

 

 

 

  Monthly Operating Report
  ACCRUAL BASIS-5

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

                  MONTH:       December 2015  
BANK RECONCILIATIONS                                
      Account #1   Account #2   Account #3     
A. BANK:  Bank of Texas             
B. ACCOUNT NUMBER:  4069           TOTAL 
C. PURPOSE (TYPE):  Checking             
1.  BALANCE PER BANK STATEMENT  $510,400             $510,400 
2.  ADD: TOTAL DEPOSITS NOT CREDITED                 $0 
3.  SUBTRACT: OUTSTANDING CHECKS                 $0 
4.  OTHER RECONCILING ITEMS                 $0 
5.  MONTH END BALANCE PER BOOKS  $510,400   $0   $0   $510,400 
6.  NUMBER OF LAST CHECK WRITTEN   1027                

 

INVESTMENT ACCOUNTS

 

      DATE OF   TYPE OF   PURCHASE   CURRENT 
BANK, ACCOUNT NAME & NUMBER  PURCHASE   INSTRUMENT   PRICE   VALUE 
7.                       
8.                       
9.                       
10.                       
11.  TOTAL INVESTMENTS            $0   $0 
                        
CASH                    
                        
12.  CURRENCY ON HAND                 $0 
                        
13.  TOTAL CASH - END OF MONTH                 $510,400 

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-6

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

  MONTH:   December 2015

 

PAYMENTS TO INSIDERS AND PROFESSIONALS

 

INSIDERS
      TYPE OF  AMOUNT   TOTAL PAID 
   NAME  PAYMENT  PAID   TO DATE 
1.  Advance Trust & Life Escrow Services  Premium Remittance  $7,826   $98,263 
2.  Purchase Escrow Services, LLC  Premium Remittance  $0   $3,687 
3.                
4.                
5.                
6.  TOTAL PAYMENTS TO INSIDERS     $7,826   $101,950 

 

PROFESSIONALS 1
      DATE OF COURT              TOTAL   
      ORDER AUTHORIZING  AMOUNT   AMOUNT   TOTAL PAID   INCURRED   
   NAME  PAYMENT  APPROVED   PAID   TO DATE   & UNPAID   
1.  Asset Servicing Group  12/15/15  $756,817   $412,683   $756,817   $149,519  2
2.  Bridgepoint Consulting  12/15/15  $673,261   $602,889   $673,261   $200,783  2
3.  Epiq Bankruptcy Solutions  05/22/15  $2,450,530   $252,894   $2,343,973   $131,557   
4.  Kim Hinkle, Attorney at Law  12/15/15  $200,377   $119,969   $200,377   $26,971  2
5.  MMS Advisors                    $217,600  5
6.  Munsch, Hardt, Kopf & Harr,P.C.  12/15/15  $1,673,802   $1,076,349   $1,673,802   $251,316  2
7.  Thompson & Knight LLP  12/15/15  $8,304,511   $5,837,850   $8,307,945   $1,361,766  2,3&4
8.  Tom Moran, US Trustee  12/18/15  $11,850   $11,850   $11,850   $472,750  6
9.  Phillips Murrah  12/15/15  $152,051   $70,006   $152,051   $12,971  2
10.  Smith, Jackson, Boyer & Brovard, PLLC  12/18/15  $55,199   $47,736   $55,199   $6,451  2
11.  Predictive Resources  11/19/15  $92,121   $92,121   $92,121   $111,348  2
12.  D3G/Lewis & Ellis  12/03/15  $88,912   $88,912   $88,912   $101,663  2
13.  Barbara Pope  12/15/15  $42,477   $42,477   $42,477   $0  7
14.  TOTAL PAYMENTS TO PROFESSIONALS       $8,655,736   $14,398,784   $3,044,696  1

 

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS

 

      SCHEDULED   AMOUNTS     
      MONTHLY   PAID   TOTAL 
      PAYMENTS   DURING   UNPAID 
NAME OF CREDITOR  DUE   MONTH   POSTPETITION 
1.                  
2.                  
3.                  
4.                  
5.                  
6.  TOTAL  $0   $0   $0 

 

1Professional fees and expenses estimated and accrued prior to May 19th are reflected only on the books of Life Partners Holdings, Inc.  Thereafter, professional fees and expenses reflect the estimated aggregate, unallocated fees and expenses for all of the Debtors, and are noted on each of the Debtors MORs.
2Amount Paid also includes payments authorized by Fee Procedures Orders dated 8/6/15 & 10/29/15.
3Total Paid To Date for Thompson & Knight includes $3,434 in filing fees paid twiced (at the time of filing and when the fee application was paid) which is not duplicated in Amount Approved.
4Amount Paid includes $1,129,446.39 paid by Life Partners Holdings, Inc.
5MMS Advisors incurred fees and expenses March 13th - May 18th in the estimated amount of $230,000.00 that are not included here since their retention has not been approved for this period of time.
6Total Paid To Date excludes out-of-pocket expense reimbrusements on behalf of subsidiary debtors.
7Amounts shown are for Fee Applications only and do not include subsequent employee/contractor payments.

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-7

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

  MONTH:   December 2015

 

QUESTIONNAIRE

 

        YES   NO
1.   HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?       X
2.   HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?       X
3.   ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?       X
4.   HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?       X
5.   HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?       X
6.   ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?       X
7.   ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?       X
8.   ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?       X
9.   ARE ANY OTHER POSTPETITION TAXES PAST DUE?       X
10.   ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?       X
11.   HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?       X
12.   ARE ANY WAGE PAYMENTS PAST DUE?       X

 

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.
 
 
 
 

 

INSURANCE        
        YES   NO
1.     ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?   X    
2.   ARE ALL PREMIUM PAYMENTS PAID CURRENT?   X    
3.   PLEASE ITEMIZE POLICIES BELOW.        

 

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.
 
 
 

 

INSTALLMENT PAYMENTS
TYPE OF           PAYMENT AMOUNT
POLICY   CARRIER   PERIOD COVERED   & FREQUENCY
             
             
             
             

 

 

 

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