8-K 1 g8k-31375.txt 8-K 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): June 30, 2003 ------------- HOMEGOLD FINANCIAL, INC. ------------------------ (Exact name of registrant as specified in its charter) South Carolina -------------- (State or other jurisdiction of Incorporation) 000-8909 57-0513287 -------------------------------------------------------------------------------- (Commission File Number) (IRS Employer Identification No.) 2340 Broad River Road, Suite B, Columbia, South Carolina 29210 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (803) 365-2500 -------------- (Registrant's Telephone Number, Including Area Code) ITEM 5. OTHER EVENTS. On March 31, 2003, HomeGold Financial, Inc. ("HGFN") and one of its subsidiaries, HomeGold, Inc. ("HGI") filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of South Carolina (the "Bankruptcy Court"). HGFN's and HGI's bankruptcy cases are being jointly administered under Case No. 03-03864-B. Pursuant to the procedure prescribed in Staff Legal Bulletin No. 2, on April 14, 2003, HGFN sought a no-action position from Staff of the Commission that would permit HGFN to file, under cover of a Current Report on Form 8-K, its periodic financial reports filed with the Bankruptcy Court, in lieu of its annual and quarterly reports under the Securities Exchange Act of 1934. The Staff has not yet responded to the request. Nonetheless, in conformity with its request and the provisions of Staff Legal Bulletin No. 2, HGFN files its financial report for the period ended May 31, 2003 and HGI files its financial report for the period ended May 31, 2003, filed with the Bankruptcy Court on June 30, 2003 (the "Reports"), as Exhibits 99.1 and 99.2 hereto, respectively, which Reports are incorporated herein by reference. THE REPORTS CONTAINS FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION THAT HAVE NOT BEEN AUDITED OR REVIEWED BY INDEPENDENT ACCOUNTANTS, ARE NOT PRESENTED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, AND MAY BE SUBJECT TO FUTURE RECONCILIATION AND ADJUSTMENTS. THE FINANCIAL INFORMATION INCLUDED IN THIS REPORT IS ONLY REPRESENTATIVE OF THE FILING COMPANIES AS LISTED ABOVE. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) EXHIBITS. 99.1 Monthly Operating Report of HomeGold Financial, Inc. for the Calendar Month May 1, 2003 to May 31, 2003 filed with the U.S. Bankruptcy Court for the District of South Carolina on June 30, 2003. 99.2 Monthly Operating Report of HomeGold, Inc. for the Calendar Month May 1, 2003 to May 31, 2003 filed with the U.S. Bankruptcy Court for the District of South Carolina on June 30, 2003. SIGNATURES 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. HOMEGOLD FINANCIAL, INC. Date: July 15, 2003 By: /s/ Karen A. Miller ------------- ------------------- Karen A. Miller Executive Vice President, Chief Financial Officer & Treasurer EXHIBITS -------- 99.1 Monthly Operating Report of HomeGold Financial, Inc. for the Calendar Month May 1, 2003 to May 31, 2003 filed with the U.S. Bankruptcy Court for the District of South Carolina on June 30, 2003. 99.2 Monthly Operating Report of HomeGold, Inc. for the Calendar Month May 1, 2003 to May 31, 2003 filed with the U.S. Bankruptcy Court for the District of South Carolina on June 30, 2003. UNITED STATES BANKRUPTCY COURT DISTRICT OF SOUTH CAROLINA In Re: Homegold Financial, Inc. ) Chapter 11 ) ) Case Number 03-03865-WB Debtor(s)) ----------- ---------------------------------- MONTHLY OPERATING REPORT Calendar Month 5/1/03 to 5/31/03 ------ ------- FINANCIAL BACKGROUND INFORMATION 1. ACCOUNTING BASIS: Cash X Accrual --- --- 2. PREPARER: State the name, address, telephone number and position of the person(s) who actually compiled the information contained in this report. Shane Smith, VP - Finance 803-365-2500 ---------------------------------------- 2340 Broad River Road, Columbia, S.C. ---------------------------------------- 3. NUMBER OF EMPLOYEES paid during this period: 0 --- 4. Have there been any CHANGES IN THE NATURE OF YOUR BUSINESS since the last reporting period? Yes No X . If yes, explain below: --- --- -------------------------------------------------------------------------------- 5. Are all BUSINESS LICENSES current? Yes X No Not Applicable --- --- --- 6. PRE-PETITION ACCOUNTS RECEIVABLE: Beginning Balance $13,126,291 ----------- Collected this Period 0 ----------- Ending Balance 13,126,291 ----------- 7. POST-PETITION ACCOUNTS RECEIVABLE: 0-30 Days: $ 0 31-60 Days: $ Over 60Days: $ -------- -------- -------- If there are any post-petition Accounts Receivable over 30 days, provide Schedule AR giving a listing of such accounts and explain the delinquencies. 8. POST-PETITION ACCOUNTS PAYABLE: 0-30 Days: $ 0 31-60 Days: $ Over 60Days: $ -------- -------- -------- If there are any POST-PETITION Accounts Payable over 30 days, provide Schedule AP giving a listing of such accounts and explain the delinquencies. 9. TAXES. Are all taxes being paid to the proper taxing authorities when due? Yes __n/a No ______. On the attached IRS Form 6123 report all tax deposits made with any financial institution for federal employment taxes. Be sure the form is complete and signed by an authorized employee of the receiving institution or taxing authority. Attach to this report a completed Form 6123 for each deposit made during the reporting period. Also attach copies of the monthly sales tax report, payroll tax report and unemployment tax report with evidence of payment of BOTH FEDERAL AND STATE TAXES. 10. ESCROW ACCOUNTS. Are you utilizing your tax account only for deposits and payment of payroll and sales taxes? Yes No X . If no, explain: N/A --- --- 11. Are all BOOKS AND RECORDS of the debtor(s) being maintained monthly and are all current? Yes X No Explain: --- --- ------------------------------------------ 12. INSURANCE EXPIRATION STATEMENT. Policy expiration dates are: Auto & Truck 12/31/03 Liability 12/31/03 -------- -------- Fire 12/31/03 Workers Comp. 12/31/03 -------- -------- 13. ACTIONS OF DEBTOR. During the last month, did the debtor: (A) Fail to defend or not oppose any action seeking to dispossess the debtor from control or custody of any asset of the estate? Yes No X Explain: --- --- -------------------------------------------------- (B) Maintain such stock, inventory, raw materials, insurance, employees and other resources as are necessary to preserve and maintain the going- concern value of the assets of the debtor? Yes No X Explain: --- --- -------------------------------------------------- 14. TRANSFER OR SALE OF PROPERTY. Did the debtor or any person with control over any of the debtor's assets transfer, convey or abandon any of the debtor's assets to another party during the period of this report other than as set forth herein (including sales by creditors)? Yes No X Explain: --- --- ------------------------------------------------------- 15. PAYMENTS TO SECURED CREDITORS during reporting period: (Attach additional sheets, if necessary.) | FREQUENCY OF | AMOUNT | NEXT | POST-PETITION | PAYMENTS PER | OF EACH | PAYMENT | PAYMENTS NOT MADE CREDITOR | CONTRACT (MO.,QTR) | PAYMENT | DUE | NUMBER & AMOUNT -------- | ------------------ | ------- | --- | --------------- N/A | | | | | | | | ------------ -------------------- --------- ----------- ------------------------ 16. PAYMENTS TO PROFESSIONALS (Attorneys, Accountants, Real Estate Agents, Auctioneers, Appraisers, etc., during reporting period: (Attach additional sheets, if necessary.) PROFESSIONAL SERVICE AMOUNT ---------------------- -------------------------- ------------------------- | | None | | ---------------------- -------------------------- ------------------------- 17. QUARTERLY U.S. TRUSTEE FEES paid during reporting period: $250 * . ------------- 18. VERIFICATION: I declare under penalty of perjury that the information contained in this monthly operating report (including attached schedules) is true and correct to the best of my knowledge, information and belief. HomeGold Financial, Inc. Dated: 6/30/03 DEBTOR-IN-POSSESSION ------- Name/ Title: Karen A. Miller, CFO By: /s/ Karen A. Miller -------------------- ------------------------ Address: 2340 Broad River Rd, Ste. B --------------------------- Columbia, SC 29210 ------------------ ___________________________________ Phone: 803-365-2500 ------------ ALL MONTHLY REPORTS MUST BE FILED AT THE BANKRUPTCY COURT (P.O. BOX 1448, COLUMBIA, SC 29202) * The Quarterly U.S. Trustee Fee was paid by HomeGold, Inc. on behalf of its parent company HomeGold Financial, Inc. UNITED STATES BANKRUPTCY COURT DISTRICT OF SOUTH CAROLINA In Re: Homegold Financial, Inc. ) Chapter 11 ) ) Case Number 03-03865-WB Debtor(s)) ----------- ---------------------------------- MONTHLY OPERATING REPORT INCOME STATEMENT (BUSINESS DEBTOR, CASH BASIS) CALENDAR MONTH 5/1/03 TO 5/31/03 ------ ------- (All figures refer to post-petition transactions)

UNITED STATES BANKRUPTCY COURT DISTRICT OF SOUTH CAROLINA In Re: HomeGold Financial, Inc. ) ) Chapter 11 ) Case Number:03-03865-WB ) ----------- Debtor(s) ) --------------------------------------- CASH DISBURSEMENTS SUMMARY REPORT Calendar Month Ending May 31, 2003 Total Disbursements from Operating Account (See Note 1) N/A --------------------- Total Disbursements from Payroll Account (See Note 2) N/A --------------------- Total Disbursements from Tax Escrow Account (See Note 3) N/A --------------------- Total Disbursements from any other Account (See Note 4) N/A --------------------- Grand Total Disbursements from all Accounts N/A --------------------- NOTE 1 --Include in this amount all checks written, wire transfers made from, or any other withdrawal from the general operating account. Exclude only transfers to the debtor-in-possession payroll account, the debtor in possession tax escrow account or other debtor in possession account where the disbursements will be listed on this report. NOTE 2 --Include in this amount all checks written, wire transfers made from, or any other withdrawal from the payroll account. Exclude only transfers to the debtor-in-possession operating account, the debtor in possession tax escrow account or other debtor-in-possession account where the disbursements will be listed on this report. NOTE 3 --Include in this amount all checks written, wire transfers made from, or any other withdrawal from the tax escrow account. Exclude only transfers to the debtor-in-possession operating account, the debtor in possession payroll account or other debtor in possession account where the disbursements will be listed on this report. NOTE 4 -- Include in this amount any other disbursements made by the debtor including (but not limited to) cash paid from a petty cash fund or cash register, amounts paid from any other debtor in possession account, and amounts paid from the accounts of others on the debtors behalf (for example, disbursements made from a law firm's escrow account as a result of a sale of property.)

ACCOUNTS RECEIVABLE AS OF May 31, 2003 ------------ TOTAL DATE PAST DUE PAST DUE CREDITOR DUE INCURRED (31-60 DAYS) (OVER 60 DAYS) N/A TOTALS THIS PAGE $0.00 $0.00 $0.00 --------------- --------------- --------------- TOTALS ALL PAGES $0.00 $0.00 $0.00 --------------- --------------- --------------- ACCOUNTS RECEIVABLE AS OF May 31, 2003 ------------ TOTAL DATE PAST DUE PAST DUE CREDITOR DUE INCURRED (31-60 DAYS) (OVER 60 DAYS) N/A TOTALS THIS PAGE $0.00 $0.00 $0.00 --------------- --------------- --------------- TOTALS ALL PAGES $0.00 $0.00 $0.00 --------------- --------------- --------------- UNITED STATES BANKRUPTCY COURT DISTRICT OF SOUTH CAROLINA In Re: Homegold, Inc. ) Chapter 11 ) Case Number 03-03864-WB ) ----------- Debtor(s)) ------------------------------------ MONTHLY OPERATING REPORT CALENDAR MONTH 5/01/03 TO 5/31/03 ------- ------- FINANCIAL BACKGROUND INFORMATION 1. ACCOUNTING BASIS: Cash X Accrual --- --- 2. PREPARER: State the name, address, telephone number and position of the person(s) who actually compiled the information contained in this report. Shane Smith, VP - Finance 803-365-2500 ---------------------------------------- 2340 Broad River Road, Columbia, S.C. ---------------------------------------- 3. NUMBER OF EMPLOYEES paid during this period: 0 --- 4. Have there been any CHANGES IN THE NATURE OF YOUR BUSINESS since the last reporting period? Yes No X . If yes, explain below: --- --- -------------------------------------------------------------------------------- 5. Are all BUSINESS LICENSES current? Yes X No Not Applicable --- --- --- 6. PRE-PETITION ACCOUNTS RECEIVABLE: Beginning Balance $9,692,619 ----------- Collected this Period 10,741 ----------- Ending Balance $9,681,878 ----------- 7. POST-PETITION ACCOUNTS RECEIVABLE: 0-30 Days: $ 169,895 31-60 Days: $ 68,578* Over 60Days: $ 0 -------- -------- -------- *Amount represents receivable due from EMMCO, LLC, not previously categorized as a post-petition trade receivable. If there are any POST-PETITION Accounts Receivable over 30 days, provide Schedule AR giving a listing of such accounts and explain the delinquencies. 8. POST-PETITION ACCOUNTS PAYABLE: 0-30 Days: $ 469,967 31-60 Days: $ 1,924** Over 60Days: $ 2,213* -------- -------- -------- * Pre-petition accounts payable approved by court to pay post-petition - to be paid in June 2003. ** Payables due prior to April 30, 2003 not previously recorded - to be paid in June 2003. If there are any POST-PETITION Accounts Payable over 30 days, provide Schedule AP giving a listing of such accounts and explain the delinquencies. 9. TAXES. Are all taxes being paid to the proper taxing authorities when due? Yes _____ No ______. On the attached IRS Form 6123 report all tax deposits made with any financial institution for federal employment taxes. Be sure the form is complete and signed by an authorized employee of the receiving institution or taxing authority. Attach to this report a completed Form 6123 for each deposit made during the reporting period. Also attach copies of the monthly sales tax report, payroll tax report and unemployment tax report with evidence of payment of BOTH FEDERAL AND STATE TAXES. 10. ESCROW ACCOUNTS. Are you utilizing your tax account only for deposits and payment of payroll and sales taxes? Yes No X . --- --- If no, explain: CONTACT WITH 3RD PARTY VENDOR FOR PAYROLL SERVICES. PROVIDER MAKES DEPOSIT ON BEHALF. 11. Are all BOOKS AND RECORDS of the debtor(s) being maintained monthly and are all current? Yes X No Explain: --- --- ------------------------------------------ 12. INSURANCE EXPIRATION STATEMENT. Policy expiration dates are: Auto & Truck 12/31/03 Liability 12/31/03 -------- -------- Fire 12/31/03 Workers Comp. 12/31/03 -------- -------- 13. ACTIONS OF DEBTOR. During the last month, did the debtor: (A) Fail to defend or not oppose any action seeking to dispossess the debtor from control or custody of any asset of the estate? Yes No X Explain: --- --- -------------------------------------------------- (B) Maintain such stock, inventory, raw materials, insurance, employees and other resources as are necessary to preserve and maintain the going- concern value of the assets of the debtor? Yes No X Explain: --- --- -------------------------------------------------- 14. TRANSFER OR SALE OF PROPERTY. Did the debtor or any person with control over any of the debtor's assets transfer, convey or abandon any of the debtor's assets to another party during the period of this report other than as set forth herein (including sales by creditors)? Yes No X Explain: --- --- ------------------------------------------------------- 15. PAYMENTS TO SECURED CREDITORS during reporting period: (Attach additional sheets, if necessary.) | FREQUENCY OF | AMOUNT | NEXT | POST-PETITION | PAYMENTS PER | OF EACH | PAYMENT | PAYMENTS NOT MADE CREDITOR | CONTRACT (MO.,QTR) | PAYMENT | DUE | NUMBER & AMOUNT -------- | ------------------ | ------- | --- | --------------- N/A | | | | | | | | ------------ -------------------- --------- ----------- ------------------------ 16. PAYMENTS TO PROFESSIONALS (Attorneys, Accountants, Real Estate Agents, Auctioneers, Appraisers, etc., during reporting period: (Attach additional sheets, if necessary.) PROFESSIONAL SERVICE AMOUNT ---------------------- -------------------------- ------------------------- | | None | | ---------------------- -------------------------- ------------------------- 17. QUARTERLY U.S. TRUSTEE FEES paid during reporting period: $0 . ------------- 18. VERIFICATION: I declare under penalty of perjury that the information contained in this monthly operating report (including attached schedules) is true and correct to the best of my knowledge, information and belief. HomeGold Financial, Inc. Dated: 6/30/03 DEBTOR-IN-POSSESSION ------- Name/ Title: Karen A. Miller, CFO By: /s/ Karen A. Miller -------------------- ------------------------ Address: 2340 Broad River Rd, Ste. B --------------------------- Columbia, SC 29210 ------------------ ___________________________________ Phone: 803-365-2500 ------------ ALL MONTHLY REPORTS MUST BE FILED AT THE BANKRUPTCY COURT (P.O. BOX 1448, COLUMBIA, SC 29202) UNITED STATES BANKRUPTCY COURT DISTRICT OF SOUTH CAROLINA In Re: HomeGold, Inc. ) Chapter 11 ) ) Case Number 03-03864-WB Debtor(s)) ----------- ------------------------------------- MONTHLY OPERATING REPORT INCOME STATEMENT (BUSINESS DEBTOR, CASH) CALENDAR MONTH 4/30/03 TO 5/31/03 ------- ------- (All figures refer to post-petition transactions)

Ending Cash Balance (L) and Reconciled Bank Balance (P) should equal. --------------------------------------------------------------------- * A COPY OF THE BANK STATEMENT(S) SHOULD BE ATTACHED TO THIS FORM. UNITED STATES BANKRUPTCY COURT DISTRICT OF SOUTH CAROLINA In Re: HomeGold, Inc. ) ) Chapter 11 ) Case Number:03-03864-WB ) ----------- Debtor(s) ) ------------------------------------------ CASH DISBURSEMENTS SUMMARY REPORT Calendar Month Ending May 31, 2003 Total Disbursements from Operating Account (See Note 1) 914,785 ------- Total Disbursements from Payroll Account (See Note 2) 228,023 ------- Total Disbursements from Tax Escrow Account (See Note 3) ------- Total Disbursements from any other Account (See Note 4) ------- Grand Total Disbursements from all Accounts 1,142,808 --------- NOTE 1 --Include in this amount all checks written, wire transfers made from, or any other withdrawal from the general operating account. Exclude only transfers to the debtor-in-possession payroll account, the debtor in possession tax escrow account or other debtor in possession account where the disbursements will be listed on this report. NOTE 2 --Include in this amount all checks written, wire transfers made from, or any other withdrawal from the payroll account. Exclude only transfers to the debtor-in-possession operating account, the debtor in possession tax escrow account or other debtor-in-possession account where the disbursements will be listed on this report. NOTE 3 --Include in this amount all checks written, wire transfers made from, or any other withdrawal from the tax escrow account. Exclude only transfers to the debtor-in-possession operating account, the debtor in possession payroll account or other debtor in possession account where the disbursements will be listed on this report. NOTE 4 -- Include in this amount any other disbursements made by the debtor including (but not limited to) cash paid from a petty cash fund or cash register, amounts paid from any other debtor in possession account, and amounts paid from the accounts of others on the debtors behalf (for example, disbursements made from a law firm's escrow account as a result of a sale of property.)

ID : 59-3324910 ------------ EFTPS PAYMENT DATA ------------ N&A/Sfx : 001-1 813 : 57958 813 : Yr/Qtr : 03/2 PYMT NO: 228312701048917 PYMT NO: Disb Status : X AMOUNT : 46,898.97 AMOUNT : Cutoff Date : 05/02 Int Rlse Date: 05/06/03 Ext Rlse Date: 05/06/03 Dep Total : 46,898.97 FICAEE: 12,862.46 FICAER: 12,862.48 FIT : 21,232.53 FUTA : 0.00 EIC : 58.50- Company Name: HOMEGOLD INC Br/Co Deposit 42/AEG 46,898.97 ID : 59-3324910 ------------ EFTPS PAYMENT DATA ------------ N&A/Sfx : 001-1 813 : 58429 813 : Yr/Qtr : 03/2 PYMT NO: 228314101061558 PYMT NO: Disb Status : X AMOUNT : 45,462.39 AMOUNT : Cutoff Date : 05/16 Int Rlse Date: 05/20/03 Ext Rlse Date: 05/20/03 Dep Total : 45,462.39 FICAEE: 11,891.98 FICAER: 11,891.94 FIT : 21,678.47 FUTA : 0.00 EIC : 0.00 Company Name: HOMEGOLD INC Br/Co Deposit 42/AEG 45,462.39 ID : 59-3324910 ------------ EFTPS PAYMENT DATA ------------ N&A/Sfx : 001-1 813 : 58784 813 : Yr/Qtr : 03/2 PYMT NO: 228315501061568 PYMT NO: Disb Status : X AMOUNT : 41,975.16 AMOUNT : Cutoff Date : 05/30 Int Rlse Date: 06/03/03 Ext Rlse Date: 06/03/03 Dep Total : 41,975.16 FICAEE: 10,775.78 FICAER: 10,775.73 FIT : 20,423.65 FUTA : 0.00 EIC : 0.00 Company Name: HOMEGOLD INC Br/Co Deposit 42/AEG 41,975.16 ACCOUNTS RECEIVABLE AS OF May 31, 2003 ------------

* Prepetition accounts payable approved by court to pay postpetition - to be paid in June 2003. ** Payables due prior to April 30, 2003 not previously recorded - to be paid in June 2003. *** Payables to professionals filed on June 13, 2003, to be paid by court order after July 21, 2003. Total due per court document $248,577.09. 4550423701 PAGE ##XXH1834DPCSTM 05310304550423701 Statement of Account Last statement:April 30, 2003 This statement:May 31, 2003 Total days in statement period: 31 4550423701 031 834 Page 1 of 10 HOMEGOLD INC BANKRUPTCY NO 03-03864-B Direct inquiries to: 241 OPERATING ACCOUNT/DEBTORS IN POSSESSION 2340 BROAD RIVER RD SUITE B NBSC Lexington COLUMBIA SC 29210-6732 5456 Sunset Boulevard Lexington SC 29072 Summary of Account Balance Account Number Ending Balance Commercial Checking 4550423701 $1,475,683.60 LET FREEDOM RING! Commercial Checking Account Number 4550423701 241 Enclosures Beginning balance 2,155,277.67 Deposits/Credits 502,492.81 Withdrawals/Debits 1,182,086.88 Ending balance 1,475,683.60 Checks Number Date Amount Control 1021 05-01 50.00 00006133827740 1023 * 05-15 11.00 00006240989710 1033 * 05-29 60.00 00006145131160 1042 * 05-13 45.00 00006239557870 1067 * 05-05 2,252.28 00006135523250 1070 * 05-02 1,016.28 00006134177920 1072 * 05-27 376.21 00006143653510 1088 * 05-05 7,179.34 00006135465080 1100 * 05-01 27,882.18 00006234285940 1101 05-05 250.00 00006135130950 1102 05-05 250.00 00006135130960 1103 05-09 825.00 00006237477300 1104 05-19 150.00 00006140781230 1105 05-06 15.84 00006235871500 1107 * 05-19 29.87 00006140893390 4550423701 PAGE ##XXH1834DPCSTM 05310304550423701 May 31, 2003 4550423701 HOMEGOLD INC Page 2 of 10 Checks 1108 05-05 140.85 00006135556240 1109 05-07 502.10 00006137382340 1110 05-23 50.30 00006243631410 1111 05-22 200.00 00006142858800 1112 05-01 75.00 00006233905540 1114 * 05-01 300.00 00006234008320 1115 05-06 80.00 00006235175390 1116 05-05 83.14 00006135503930 1120 * 05-07 27.43 00006137356200 1121 05-05 1,294.26 00006135256870 1122 05-05 4,400.55 00006135173730 1123 05-06 2,077.51 00006235374310 1124 05-07 397.38 00006137434970 1125 05-07 458.53 00006137374080 1126 05-16 73.00 00006140115310 1128 * 05-01 17.64 00006233756430 1129 05-01 75.00 00006234042680 1130 05-05 11,540.03 00006135134810 1131 05-05 198.77 00006135173720 1132 05-05 16,548.84 00006135451440 1134 * 05-01 2,000.00 00006234047400 1135 05-02 1,603.41 00006134276550 1136 05-06 269.49 00006235068150 1137 05-05 1,184.00 00006135375260 1138 05-06 2,676.00 00006235004900 1139 05-19 2,199.77 00006241538350 1141 * 05-12 74.13 00006138528790 1143 * 05-06 1,443.12 00006235166850 1144 05-14 2,054.75 00006139298380 1145 05-13 3,369.22 00006239559830 1146 05-07 2,502.64 00006137257470 1147 05-08 522.99 00006138037900 1148 05-05 3,600.00 00006135558040 1149 05-08 625.60 00006137946350 1150 05-08 609.96 00006137946360 1151 05-22 1,485.00 00006142895700 1152 05-06 3,000.00 00006235087100 1153 05-07 818.71 00006137158530 1154 05-07 859.09 00006137158520 1155 05-08 52.96 00006236449560 1156 05-14 100.57 00006139166530 1157 05-07 2,282.21 00006137479600 1158 05-15 1,480.96 00006240691470 1160 * 05-21 600.00 00006242572230 1161 05-13 8,274.42 00006239491610 1162 05-02 16,518.83 00006134112280 1163 05-07 27,882.18 00006137299810 4550423701 PAGE ##XXH1834DPCSTM 05310304550423701 May 31, 2003 4550423701 HOMEGOLD INC Page 3 of 10 Checks 1165 * 05-06 7,250.00 00006235233050 1166 05-06 7,250.00 00006235233040 1167 05-07 491.39 00006137436130 1169 * 05-06 20.00 00006235463780 1170 05-08 27.90 00006236584760 1177 * 05-05 35,000.00 00006135561880 1180 * 05-12 211.40 00006138585110 1181 05-08 134.33 00006236495210 1182 05-14 10.47 00006139295930 1183 05-14 152.41 00006139295940 1184 05-13 725.00 00006239553730 1185 05-13 1,363.51 00006239427530 1187 * 05-09 906.09 00006237466950 1188 05-13 6,513.21 00006239427650 1189 05-14 13.00 00006139261620 1195 * 05-15 10.00 00006240609340 1197 * 05-14 6.00 00006139387010 1198 05-14 6.00 00006139224040 1199 05-19 10.00 00006140849830 1200 05-23 10.00 00006243687560 1202 * 05-21 7.50 00006242581740 1203 05-14 6.00 00006139051450 1204 05-16 15.00 00006140176350 1207 * 05-13 5.00 00006239175430 1208 05-09 5.00 00006237271360 1214 * 05-23 10.00 00006243687550 1215 05-13 5.00 00006239175420 1216 05-23 7.50 00006243677580 1217 05-06 980.98 00006235067060 1218 05-13 34.07 00006239324630 1219 05-12 300.00 00006138452530 1220 05-14 64.26 00006139166540 1221 05-09 1,230.25 00006237159450 1222 05-15 3,498.00 00006240684070 1223 05-16 4,097.83 00006140106410 1224 05-15 174.26 00006240639180 1225 05-14 1,037.60 00006139369680 1228 * 05-14 15.00 00006139299550 1229 05-14 342.63 00006138999800 1230 05-14 315.49 00006138999810 1231 05-16 2,785.98 00006140127180 1232 05-16 2,084.43 00006140108310 1233 05-08 626.84 00006236706110 1239 * 05-22 12.00 00006142755990 1243 * 05-29 25.00 00006145137080 1245 * 05-30 12.00 00006246061130 1250 * 05-16 383.50 00006139903100 4550423701 PAGE ##XXH1834DPCSTM 05310304550423701 May 31, 2003 4550423701 HOMEGOLD INC Page 4 of 10 Checks 1252 * 05-15 1,216.14 00006240501210 1255 * 05-27 6.00 00006143674700 1256 05-27 5.00 00006143321560 1257 05-29 9.00 00006144995590 1260 * 05-28 10.00 00006244946400 1264 * 05-28 6.00 00006244918660 1265 05-28 10.00 00006245045600 1266 05-12 4,612.54 00006138701690 1267 05-07 1,371.90 00006137304910 1268 05-07 2,299.20 00006137289060 1269 05-14 325.84 00006240319930 1270 05-19 1,598.37 00006140836170 1272 * 05-27 14.00 00006143573940 1273 05-23 29.00 00006243675960 1276 * 05-28 10.00 00006244946570 1279 * 05-30 10.00 00006245936550 1280 05-27 10.00 00006143719960 1281 05-29 10.00 00006145035890 1283 * 05-27 9.00 00006143673510 1285 * 05-29 5.00 00006144837280 1286 05-29 18.00 00006145141200 1288 * 05-28 6.00 00006245048770 1290 * 05-29 9.00 00006144906320 1291 05-23 10.00 00006243472730 1292 05-23 6.00 00006243600310 1293 05-22 10.00 00006142830290 1294 05-23 10.00 00006243664410 1296 * 05-23 7.50 00006243605230 1297 05-23 30.00 00006243483280 1298 05-23 6.00 00006243689870 1299 05-21 6.00 00006242654430 1305 * 05-29 10.00 00006145139730 1307 * 05-27 12.00 00006143717710 1313 * 05-19 10,239.75 00006241578190 1314 05-19 10,239.75 00006241578200 1315 05-20 633.90 00006141747700 1316 05-09 1,433.96 00006237485370 1317 05-27 26.00 00006143589560 1319 * 05-19 35.00 00006241454120 1321 * 05-13 12,513.89 00006239180260 1326 * 05-23 14.50 00006243687570 1330 * 05-21 12.00 00006242558860 1332 * 05-22 13.00 00006142900680 1333 05-23 7.50 00006243677590 1337 * 05-23 10.00 00006243674790 1338 05-23 7,851.25 00006243607190 1339 05-19 6,534.46 00006140841500 4550423701 PAGE ##XXH1834DPCSTM 05310304550423701 May 31, 2003 4550423701 HOMEGOLD INC Page 5 of 10 Checks 1340 05-23 307.00 00006243394710 1341 05-20 85.00 00006141489320 1342 05-20 255.00 00006141489310 1343 05-19 1,087.32 00006241559110 1344 05-21 1,221.48 00006242682030 1345 05-20 1,317.37 00006141598430 1346 05-20 1,757.09 00006141598420 1347 05-23 150.00 00006243395000 1348 05-19 550.00 00006140724120 1349 05-19 36.19 00006140776900 1350 05-15 4,530.36 00006240607680 1352 * 05-22 654.50 00006142888830 1354 * 05-23 6.00 00006243685090 1355 05-29 35.00 00006144938250 1356 05-19 150.00 00006140841190 1357 05-19 350.00 00006241549400 1358 05-20 40.36 00006141731830 1363 * 05-29 9.00 00006145129050 1365 * 05-30 14.00 00006246143840 1367 * 05-27 5.00 00006143344420 1368 05-23 764.72 00006243607710 1370 * 05-23 5.00 00006243499610 1371 05-21 375.00 00006242628010 1373 * 05-22 2,701.48 00006142888740 1374 05-29 19.00 00006145141450 1375 05-15 1,350.00 00006240612290 1376 05-15 136.42 00006240465770 1377 05-15 82.76 00006240465760 1378 05-15 875.00 00006240420640 1379 05-20 140.00 00006141771290 1381 * 05-21 25.00 00006242680940 1383 * 05-22 59.00 00006142832890 1384 05-20 596.00 00006141771280 1385 05-20 255.00 00006141771300 1387 * 05-29 10.00 00006145139760 1388 05-28 1,650.00 00006245062890 1389 05-21 645.00 00006242673210 1390 05-20 500.00 00006141401970 1391 05-22 30.18 00006142644310 1393 * 05-22 225.00 00006142888820 1394 05-20 36.68 00006141947690 1395 05-21 58.30 00006242569870 1396 05-16 3,600.00 00006140118810 1403 * 05-28 28.92 00006244816580 1404 05-28 2,436.95 00006245048400 1406 * 05-22 1,061.78 00006142649880 1407 05-22 1,964.36 00006142878660 4550423701 PAGE ##XXH1834DPCSTM 05310304550423701 May 31, 2003 4550423701 HOMEGOLD INC Page 6 of 10 Checks 1442 * 05-20 74.17 00006141426250 1445 * 05-20 133,519.34 00006141458600 1446 05-21 51,993.53 00006242461660 1447 05-27 104.17 00006143571370 1448 05-28 62.60 00006245058320 1452 * 05-27 118.80 00006143571380 1453 05-27 533.49 00006143571390 1454 05-22 374.07 00006142890180 1455 05-22 10,411.81 00006142890190 1456 05-20 1,305.13 00006141798310 1457 05-20 1,101.52 00006141627120 1458 05-20 1,944.30 00006141564310 1459 05-28 17,003.61 00006244926310 1460 05-23 875.00 00006243469320 1461 05-27 588.63 00006143392130 1462 05-27 593.92 00006143533380 1463 05-27 66.43 00006143386350 1464 05-27 60.96 00006143650190 1465 05-27 281.16 00006143650180 1466 05-27 75.80 00006143650160 1467 05-27 250.19 00006143650170 1468 05-27 301.19 00006143386340 1469 05-28 3,881.70 00006244551870 1470 05-27 7,200.00 00006143685530 1471 05-27 1,150.00 00006143682220 1472 05-28 233.68 00006244720130 1521 * 05-29 795.19 00006145096050 1522 05-28 739.00 00006244921100 * Skip in check sequence Other Debits Date Transaction Type Reference Number Description Amount 05-01 Wire Transfer-Out 388000501155600 BNF= ADP INC FUNDS 54,564.75 MGMT DRAWDOWN REQUEST 05-01 Wire Transfer-Out 874000501135324 6,805.00 05-01 Automatic Transfer 00000000000000 TRANSFER TO 344.00 DEPOSIT SYSTEM ACCOUNT 4550422901 05-02 Automatic Transfer 00000000000000 TRANSFER TO 389.12 DEPOSIT SYSTEM ACCOUNT 4550422901 05-05 Preauthorized Wd 26590808000632 FANNIE MAE 17,280.00 MORNET 030505 15061 4550423701 PAGE ##XXH1834DPCSTM 05310304550423701 May 31, 2003 4550423701 HOMEGOLD INC Page 7 of 10

4550423701 PAGE ##XXH1834DPCSTM 05310304550423701 May 31, 2003 4550423701 HOMEGOLD INC Page 8 of 10

4550423701 PAGE ##XXH1834DPCSTM 05310304550423701 May 31, 2003 4550423701 HOMEGOLD INC Page 9 of 10 Other Debits Date Transaction Type Reference Number Description Amount 05-30 Wire Transfer-Out 633000530094213 HOMEGOLD 401K TRUS 1,184.83 T DEPT CREDIT PLAN 800039 ATTN: ALLYSON NEALIS 05-30 Book Transfer Debit 53009122200000 BY CORPORATE AUTH 903.89 TO # 04550342901 AUTH BY: W951DSK

4550423701 PAGE ##XXH1834DPCSTM 05310304550423701 May 31, 2003 4550423701 HOMEGOLD INC Page 10 of 10

4550422901 PAGE ##XXH1834DPCSTM 05310304550422901 Statement of Account Last statement:April 30, 2003 This statement:May 31, 2003 Total days in statement period: 31 4550422901 031 834 Page 1 of 4 HOMEGOLD INC BANKRUPTCY NO 03-03864-B Direct inquiries to: 8 PAYROLL ACCOUNT/DEBTORS IN POSSESSION 2340 BROAD RIVER RD SUITE B NBSC Lexington COLUMBIA SC 29210-6732 5456 Sunset Boulevard Lexington SC 29072 Summary of Account Balance Account Number Ending Balance Commercial Checking 4550422901 $0.00 LET FREEDOM RING! Commercial Checking Account Number 4550422901 8 Enclosures Beginning balance 0.00 Deposits/Credits 230,462.61 Withdrawals/Debits 230,462.61 Ending balance 0.00 Checks Number Date Amount Control 1003 05-08 417.79 00006137903190 1004 05-06 40.73 00006235871490 1005 05-12 1,031.32 00006138564200 1007 * 05-09 335.34 00006237488820 1008 05-07 721.09 00006137482040 1009 05-22 1,135.92 00006142885070 1010 05-23 2,603.48 00006243604460 1011 05-27 569.71 00006143690640 * Skip in check sequence 4550422901 PAGE ##XXH1834DPCSTM 05310304550422901 May 31, 2003 4550422901 HOMEGOLD INC Page 2 of 4

4550422901 PAGE ##XXH1834DPCSTM 05310304550422901 May 31, 2003 4550422901 HOMEGOLD INC Page 3 of 4

4550422901 PAGE ##XXH1834DPCSTM 05310304550422901 May 31, 2003 4550422901 HOMEGOLD INC Page 4 of 4 Deposits/Other Credits Date Transaction Type Reference Number Description Amount 05-29 Automatic Transfer 00000000000000 TRANSFER FROM 49,976.77 ZERO BALANCE ACCT 4550423701 Balance Summary Date Amount Date Amount Date Amount 04-30 0.00 05-09 0.00 05-23 0.00 05-01 0.00 05-12 0.00 05-27 0.00 05-02 0.00 05-13 0.00 05-28 0.00 05-06 0.00 05-15 0.00 05-29 0.00 05-07 0.00 05-16 0.00 05-08 0.00 05-22 0.00

HOMEGOLD FINANCIAL INC 8-K