EX-99.1 2 ex99801.txt MONTHLY FINANCIAL STATEMENTS

NOTE: Decrease in Secured Debt due to paying down debt obligations to major creditor with proceeds received from sale of two subsidiaries in August.

NOTE 1: Decrease in management fee receivables due to determination by management that $114,672 were uncollectible. This receivable is being reviewed in more detail to determine its collectibility. NOTE 2: Prior year adjustment required under SAB 101, not known at filing date, charged against pre-petition equity and monthly amortization recorded as non-operating income on MOR-2. NOTE 3: Increase in Other Postpetition Liabilities due to reclass of post-petition dividends payable.

NOTE: Interest expense decreased due to reversal of interest accrued since petition date on pre-petition debt.

NOTE 1: Certain accrued expenses, pre-petition, were unsupported or unsubstantiated and, therefore, were reversed to non-operating income. NOTE 2: Management determined certain management fee receivables, totalling $114,672 were uncollectible.

* Increase in Purchased Services, line 25 above, is due to retainer paid to law firm and auditing fees related to the 401(k) Plan.

* The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero. ** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment or deposit.

PROMEDCO MANAGEMENT CO 8-K