EX-99.1 2 a4940720ex99.txt EXHIBIT 99.1 Exhibit 99.1 UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF CALIFORNIA In re: Fresh Choice, Inc | Case No. 04-54318 (ASW) 485 Cochrane Circle | -------------- Morgan Hill, CA 95037 | | CHAPTER 11 | MONTHLY OPERATING REPORT | (GENERAL BUSINESS CASE) ------------------------------------------------------- SUMMARY OF FINANCIAL STATUS MONTH ENDED: 07/10/05 (1) PETITION DATE: 07/12/04 ------------ ---------- 1. Debtor in possession (or trustee) hereby submits this Monthly Operating Report on the Accrual Basis of accounting (or if checked here _____ the Office of the U.S. Trustee or the Court has approved the Cash Basis of Accounting for the Debtor). Dollars reported in $1 --

Notes: (1) The Debtor's financial statements are not maintained on a calendar month end, they are maintained by period -- each with 4 weeks. The financial statements represented in this Monthly Operating Report cover the four-week period from June 13, 2005 through July 10, 2005. The petition was filed on July 12, 2004, so all of the activity is post-petition. (2) On July 12, 2004 and July 14, 2004, this court entered certain orders authorizing, but not requiring, the debtor to pay certain pre- petition obligations including: accrued employee wages, salaries and contributions to employee benefit's plan, the debtor's share of certain payroll taxes, pre-petition sales, use and similar taxes in the ordinary course of business. (3) Adjustments were made due to year end for Period 13, 2004. See note 4 on Statement of Operations and note 5 on Balance Sheet for further detail. I declare under penalty of perjury I have reviewed the above summary and attached financial statements, and after making reasonable inquiry believe these documents are correct. Date: 07/27/05 ---------- -------------------------------------- Rey Dayson - Authorized Signer on Behalf of David Pertl

Fresh Choice, Inc. (Case # 04-54318 ASW) Notes to the Statement of Operations as of July 10, 2005 (1) Cost of Goods Sold includes restaurant labor and benefits which is standard for the restaurant industry. (2) Real Property Amount -------- Rent Expense 462,125 Common Ground Maintenance 107,679 -------- Total 569,804 (3) Other Admin Amount -------- Deposits Over/Short (252) Cash Over (1,160) Cash Short 2,745 Freight, Express, Cartage 2,217 Services 65,479 Supplies 98,200 Misc. Operating Expense 597 Auto Related Expense 9,348 Auto Incentive Bank Charges 12,522 Penalties & Late fees 338 Payroll Processing Fees 3,919 Real Time Fees 5,833 Royalty Fees 3,243 Recruiting 7,234 Asset Write Off 409 Management Training & Development 19,128 -------- Total 229,800 (4) Adjustments were made to Period 13 due to year end. Below are the changes in detail:

BALANCE SHEET (General Business Case) For the Month Ended 07/10/05 ------------- Assets From Schedules Market Value(1) -------------- --------------- Current Assets Cash and cash equivalents - 1 unrestricted $ 2,632,733 --------------- Cash and cash equivalents - 2 restricted --------------- 3 Accounts receivable (net) A $ 90,638 --------------- 4 Inventory B $ 294,575 --------------- 5 Prepaid expenses $ 460,960 --------------- 6 Professional retainers --------------- 7 Other:Assets Held for Sale ---------------------------- --------------- 8 ---------------------------------- --------------- 9 Total Current Assets $ 3,478,907 --------------- Property and Equipment (Market Value) 10 Real property C $ 2,450,295 --------------- 11 Machinery and equipment D $ 2,029,358 --------------- 12 Furniture and fixtures D $ 2,102,003 --------------- 13 Office equipment D $ 45,747 --------------- 14 Leasehold improvements D $ 6,554,806 --------------- 15 Vehicles D $ 587 --------------- 16 Other: D ---------------------------- --------------- 17 D ---------------------------------- --------------- 18 D ---------------------------------- --------------- 19 D ---------------------------------- --------------- 20 D ---------------------------------- --------------- 21 Total Property and Equipment $13,182,795 --------------- Other Assets 22 Loans to shareholders --------------- 23 Loans to affiliates --------------- 24 Deposits (See Note 4) $ 795,912 ---------------------------------- --------------- 25 Intangible $ 155,019 ---------------------------------- --------------- 26 ---------------------------------- --------------- 27 ---------------------------------- --------------- 28 Total Other Assets $ 950,931 --------------- 29 Total Assets $17,612,632 =============== NOTE: Indicate the method used to estimate the market value of assets (e.g., appraisals; familiarity with comparable market prices, etc.) and the date the value was determined. Liabilities and Equity (General Business Case) Liabilities From Schedules Post-Petition

Fresh Choice, Inc. (Case # 04-54318 ASW) Notes to the Balance Sheet as of July 10, 2005 Note: ------

Fresh Choice, Inc. Payments to Officers Period 7, 2005

SCHEDULES TO THE BALANCE SHEET (General Business Case) Schedule A Accounts Receivable and (Net) Payable Accounts Receivable Accounts Payable Past Due Receivables and Payables Agings (Pre and Post-petition) (Post -petition) Post Petition Debt ------------------------ ---------------------- -------------------- 0 -30 Days $90,638 $477,256 ------------------------ ---------------------- 31-60 Days ------------------------ ---------------------- 61-90 Days $0 ---------------------- -------------------- 91+ Days ------------------------ ---------------------- Total accounts receivable/payable-(see note 1) $90,638 $477,256 ------------------------ ====================== Allowance for doubtful accounts ------------------------ Accounts receivable (net) $90,638 ========================

Schedule B Inventory/Cost of Goods Sold Types and Amount of Inventory(ies) Cost of Goods Sold --------------------------------------------------------- ------------------------------------- Inventory(ies) Balance at End of Month Inventory Beginning of Month $284,842 ============= Add - Retail/Restaurants Net purchase - $1,025,269 ------------- Product for Direct labor resale $294,575 $1,401,535 ------------------------- ------------- Manufacturing overhead ------------- Distribution - Freight in ------------- Products for Other: resale $0 ------------------------- ------------- $0 --------------------------------------- ------------- Manufacturer - --------------------------------------- ------------- Raw Materials ------------------------- Work-in-progress Less - ------------------------- Finished Inventory End of Month goods $294,575 ------------------------- ------------- Shrinkage ------------- Other - Personal Use Explain ------------------------- ------------- Uniforms ---------- Cost of Goods Sold $2,417,071 ---------- ============= TOTAL $294,575 =========================

Method of Inventory Control Inventory Valuation Methods Do you have a functioning perpetual inventory system? Indicate by a checkmark method of inventory used. Yes X No ---- ---- How often do you take a complete physical inventory? Valuation methods - FIFO cost --- Weekly LIFO cost ---- --- Monthly X Lower of cost or market ---- --- Quarterly Retail method ---- --- Semi-annually Other X ---- --- Annually Explain ---- Date of last physical inventory was July 10, 2005 Standard Cost, with updates every month before ----------------- inventory ---------------------------------------------------- ---------------------------------------------------- Date of next physical inventory is August 7, 2005 ---------------- ---------------------------------------------------- Note: (1) Food credit are given due to quantity discounts and/or marketing allowances. Payments are received at the end of each quarter.

Schedule C Real Property

Schedule E Aging of Post-Petition Taxes (As of End of the Current Reporting Period)

Schedule F Pre-Petition Liabilities

STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS Increase/(Decrease) in Cash and Cash Equivalents For the Month Ended 07/10/05 -----------

FRESH CHOICE INC 8-K