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The following is an excerpt from a 8-K SEC Filing, filed by TESSERACT GROUP INC on 8/10/2001.
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TESSERACT GROUP INC - 8-K - 20010810 - EXHIBIT_99

Exhibit 99.2

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF ARIZONA

In re: ) CASE NO. B-00-10938-ECF-RTB

)

THE TESSERACT GROUP, INC. ) BUSINESS AND INDUSTRY

) MONTHLY OPERATING REPORT
)
) MONTH OF JUNE
)

Debtor(s) ) DATE PETITION FILED: October 6, 2000 )
) TAX PAYER ID NO. 4101581297

Nature of Debtor's Business: For Profit Educational Services

DATE DISCLOSURE STATEMENT: FILED Not Yet Filed TO BE FILED To Be Determined DATE PLAN OF REORGANIZATION: FILED Not Yet Filed TO BE FILED To Be Determined

I CERTIFY UNDER PENALTY OF PERJURY THAT THE FOLLOWING MONTHLY OPERATING REPORT AND THE ACCOMPANYING ATTACHMENTS ARE TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE.

RESPONSIBLE PARTY:

                                                                         CEO
----------------------------------------                              ----------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY                                 TITLE

Michael Lynch
----------------------------------------                              ----------
PRINTED NAME OF RESPONSIBLE PARTY                                        DATE

PREPARER:

                                                                      Controller
----------------------------------------                              ----------
ORIGINAL SIGNATURE OF PREPARER                                          TITLE

Douglass E. Snell
----------------------------------------                              ----------
PRINTED NAME OF PREPARER                                                 DATE

PERSON TO CONTACT REGARDING THIS REPORT: Douglass E. Snell
                                         ---------------------------------------
                           PHONE NUMBER: 480-783-4317
                                         ---------------------------------------
                                ADDRESS: 4515 E. Muirwood Dr.
                                         Phoenix, AZ 85048
                                         ---------------------------------------

ORIGINAL OF REPORT IS FILED WITH THE COURT,
COPY IS FILED WITH U.S. TRUSTEE'S OFFICE


THE TESSERACT GROUP, INC.
B-00-10938-ECF-RTB MONTH: JUNE 2001

RECEIPTS AND DISBURSEMENTS

                                                                             BANK ACCOUNTS
                                     -----------------------------------------------------------------------------------------------
Amounts reported should be              NATIONAL        GROUP           GROUP           GROUP        TESSERACT GROUP     TESSERACT
per the debtor's books,                DEPOSITORY     DEPOSITORY        MEDICAL         PAYROLL         OPERATING         CHARTER
not per the bank statement           #944-010-7759   #022-922-6741   #022-922-6576   #022-922-6576    #022-978-8101    #022-922-6808
                                     -------------   -------------   -------------   -------------    -------------    -------------
ACCOUNT BALANCE -
BEGINNING OF MONTH                              --      376,879.47              --              --               --        31,863.49

RECEIPTS
  STUDENT FEES                          982,513.09      210,153.45
  CHARTER SCHOOL REVENUE                                                                                                          --
  ACCOUNTS RECEIVABLE                           --
  INTEREST                                                    6.10
  SALE OF ASSETS
  TRANSFERS IN FROM OTHER ACCOUNTS                      982,513.09              --      744,796.62       119,518.20               --
  OTHER (ATTACH LIST)

      TOTAL RECEIPTS                    982,513.09    1,192,672.64              --      744,796.62       119,518.20               --

DISBURSEMENTS
  BUSINESS - ORDINARY OPERATIONS                --       21,055.14              --      288,767.36        60,674.82         4,111.81
  CAPITAL IMPROVEMENTS
  PRE-PETITION DEBT
  TRANSFERS TO OTHER DIP ACCOUNTS       982,513.09      864,314.82                                                                --
  PAYMENTS MADE FOR SUNRISE EDU                         398,788.18                      456,029.26        59,658.38
  OTHER (VOIDS)                                                                                             (815.00)

REORGANIZATION EXPENSES:
  ATTORNEY FEES
  ACCOUNTANT FEES
  OTHER PROFESSIONAL FEES
  U.S. TRUSTEE QUARTERLY FEE
  COURT COSTS

     TOTAL DISBURSEMENTS                982,513.09    1,284,158.14              --      744,796.62       119,518.20         4,111.81
                                       -----------   -------------     -----------    ------------     ------------    -------------
ACCOUNT BALANCE -
END OF MONTH                                    --      285,393.97              --              --               --        27,751.68
                                       ===========   =============     ===========    ============     ============    =============

                                                                        BANK ACCOUNTS
                                     -------------------------------------------------------------------------------------
Amounts reported should be               CHARTER       FIRST FEDERAL     CREDITOR         PETTY CASH
per the debtor's books,              EXTRACURRICULAR   CREDIT UNION       RESERVE       EAGAN MINNESOTA
not per the bank statement            #022-922-7442   #4002-0270-922   #052-980-2118   #1-801-9204-8049        TOTAL
                                      -------------   --------------   -------------   ----------------   ----------------
ACCOUNT BALANCE -
BEGINNING OF MONTH                               --               --      416,633.90                 --         825,376.86

RECEIPTS
  STUDENT FEES                                                                                                1,192,666.54
  CHARTER SCHOOL REVENUE                                                                                                --
  ACCOUNTS RECEIVABLE                                                                                                   --
  INTEREST                                                                    561.97                                568.07
  SALE OF ASSETS                                                                  --                                    --
  TRANSFERS IN FROM OTHER ACCOUNTS                                                                            1,846,827.91
  OTHER (ATTACH LIST)                                                                                                   --

      TOTAL RECEIPTS                             --               --          561.97                 --       3,040,062.52

DISBURSEMENTS
  BUSINESS - ORDINARY OPERATIONS                                                                                374,609.13
  CAPITAL IMPROVEMENTS                                                                                                  --
  PRE-PETITION DEBT                                                                                                     --
  TRANSFERS TO OTHER DIP ACCOUNTS                --                                                  --       1,846,827.91
  PAYMENTS MADE FOR SUNRISE EDU                                                                                 914,475.82
  OTHER (VOIDS)                                                                                                    (815.00)

REORGANIZATION EXPENSES:
  ATTORNEY FEES                                                                                                         --
  ACCOUNTANT FEES                                                                                                       --
  OTHER PROFESSIONAL FEES                                                                                               --
  U.S. TRUSTEE QUARTERLY FEE                                                                                            --
  COURT COSTS                                                                                                           --

     TOTAL DISBURSEMENTS                         --               --              --                 --       3,135,097.86
                                       ------------    -------------   -------------      -------------      -------------
ACCOUNT BALANCE -
END OF MONTH                                     --               --      417,195.87                 --         730,341.52
                                       ============    =============   =============      =============      =============

                    THE FOLLOWING SECTION MUST BE FILLED OUT

DISBURSEMENTS FOR CALCULATING QUARTERLY FEES:
 TOTAL DISBURSEMENTS FROM ABOVE                                                                               3,135,097.86
  LESS: TRANSFERS OUT TO OTHER DIP ACCOUNTS                                                                  (1,846,827.91)
  LESS: PAYMENTS MADE FOR SUNRISE EDUCATIONAL SERVICES, INC.                                                   (914,475.82)
 PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. PAYMENTS FROM ESCROW OR 2-PARTY CHECKS)
                                                                                                          ----------------
 TOTAL DISBURSEMENTS FOR CALCULATING QUARTERLY FEES:                                                            373,794.13
                                                                                                          ================

2

The Tesseract Group (excl. Sunrise) Statement of Operations For the Month Ending June 30, 2001

REVENUE

Tuition and Fees Revenue                                          $  107,684.75
Charter Revenue                                                              --
Transportation Revenue                                                       --
Food Revenue                                                                 --
Refunds/Returns                                                          (20.73)
Discounts                                                                    --
                                                                 --------------

Total Revenue                                                        107,664.02
                                                                 --------------

OPERATIONAL COSTS
Salaries and Wages                                                   176,597.82
Taxes and Benefits                                                    14,552.33
Classroom Expenses                                                        80.39
Food Programs Expense                                                        --
Transportation Expenses                                                      --
Maintenance Expense                                                          --
Insurance Expense                                                     46,316.98
Internet Expense                                                             --
Rent Expense                                                           3,090.00
Security Services Expense                                                 46.84
Personal Property Tax Expense                                                --
Real Property Tax Expense                                                    --
Utilities Expense                                                     (5,441.04)
                                                                 --------------

Total Operational Costs                                              235,243.32
                                                                 --------------

GENERAL & ADMINISTRATIVE COSTS
Advertising, Mktg, Promo Exp                                                 --
Audit & Tax Expense                                                          --
Bad Debt Expense                                                      19,586.47
Bank Charges/Processing Fees-A                                           631.30
Computer/Technology Expense                                                  --
Consultant Fees Expense                                                      --
Investor Relations Expense                                                   --
Licenses & Fees Expense                                                      --
Office/School Supplies Expense                                               --
Penalties & Late Fees Expense                                                --
Postage and Printing Expense                                                 --
Pre-Employment Expense                                                       --
Telephone Expense                                                     (1,470.67)
Travel Expense                                                           183.99
Closed School Expense                                                        --
Corporate Overhead                                                   373,569.06
Corporate Overhead Allocated to Sunrise                             (186,785.00)
Other Expenses                                                       244,092.10
                                                                 --------------

Total General and Administrative Expenses                            449,807.25
                                                                 --------------

Gain/Loss on Sales of Fixed Assets                                (1,143,892.68)
Other Income                                                             618.72
Interest Expense                                                     (80,537.09)
                                                                 --------------

Net Interest and Other Income (Expense)                           (1,223,811.05)
                                                                 --------------

Depreciation Expense                                                         --
                                                                 --------------

Total Depreciation and Amortization                                          --
                                                                 --------------

REORGANIZATION EXPENSES
Professional Fees                                                      7,925.00
Professional Fees Allocated to Sunrise                                (3,963.00)
                                                                 --------------

Total Reorganization Expenses                                          3,962.00
                                                                 --------------

Net Income                                                       $(1,805,159.60)
                                                                 ==============

3

The Tesseract Group (excl. Sunrise) Balance Sheet June 30, 2001

ASSETS

Current Assets
Cash and Cash Equivalents                                        $   718,127.32
Accounts Receivable, net                                               2,000.00
Note Receivable from Nobel                                                   --
Prepaid Rent                                                                 --
Other Prepaid Expenses                                                       --
                                                                 --------------

Total Current Assets                                                 720,127.32

Investment in Sunrise                                             18,971,824.26
Property and Equipment, net                                                  --
Deposits and Other Assets                                          1,512,992.80
                                                                 --------------

Total Assets                                                     $21,204,944.38
                                                                 ==============

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities
Accounts Payable                                                 $    13,360.22
Accrued Payroll and Benefits                                       1,021,490.20
Accrued Payroll Taxes                                                 62,111.49
Deferred Revenue and Tuition Deposits                                885,140.74
                                                                 --------------

Total Current Liabilities                                          1,982,102.65
                                                                 --------------

Pre-Petition Liabilities
Line of Credit                                                     5,848,822.65
Accounts Payable                                                   3,989,515.21
Other Unsecured Notes Payable                                        865,500.00
Other Current Liabilities                                          4,348,790.44
Long-Term Debt                                                     1,703,205.97
                                                                 --------------

Total Pre-Petition Liabilities                                    16,755,834.27
                                                                 --------------

Due to Sunrise                                                       969,876.77
Reserve for Closed Schools                                           504,099.10
Other Long-Term Obligations                                           13,999.76
                                                                 --------------

Total Long-Term Liabilities                                        1,487,975.63
                                                                 --------------

Total Liabilities                                                 20,225,912.55
                                                                 --------------

Shareholders' Equity
Pre-Petition Shareholders' Equity                                  5,309,828.65
Post Petition Retained Deficit                                    (4,330,796.82)
                                                                 --------------

Total Shareholders' Equity                                           979,031.83
                                                                 --------------

Total Liabilities and Shareholders' Equity                       $21,204,944.38
                                                                 ==============

                                        4

CASE NUMBER: B-00-10938-ECF-RTB                       STATUS OF ASSETS

                                                      0-30      31-60     60+
ACCOUNTS RECEIVABLE                         TOTAL     DAYS      DAYS      DAYS
-------------------                         -----     ----      ----      ----

TOTAL ACCOUNTS RECEIVABLE                  30,921     2,000        --    28,921
LESS: AMOUNT CONSIDERED UNCOLLECTIBLE      28,921                        28,921
ACCOUNTS RECEIVABLE (NET)                   2,000     2,000        --        --

                               SCHEDULED                               CURRENT
FIXED ASSETS                     AMOUNT      ADDITIONS    DELETIONS     AMOUNT
------------                     ------      ---------    ---------     ------
REAL PROPERTY                  1,867,408           00     1,867,408       (0)

BUILDING IMPROVEMENTS/PLANT      846,395       16,066       862,461       (0)
ACCUMULATED DEPRECIATION        (136,823)     (33,112)     (169,935)       0
NET BUILDINGS/PLANT              709,573      (17,047)      692,526       (0)

EQUIPMENT                      5,466,149       11,637     5,477,786       (0)
ACCUMULATED DEPRECIATION      (2,404,930)    (533,426)   (2,938,357)       0
NET EQUIPMENT                  3,061,218     (521,789)    2,539,429       (0)

AUTOS & VEHICLES                 557,586           00       557,586       --
ACCUMULATED DEPRECIATION        (259,791)     (65,272)     (325,063)       0
NET AUTOS & VEHICLES             297,795      (65,272)      232,523        0

NOTE: Reduction in assets due to sale of Private and Charter School assets.

5

CASE NUMBER: B-00-10938-ECF-RTB                STATUS OF LIABILITIES
                                               AND SENSITIVE PAYMENTS

      POSTPETITION
   UNPAID OBLIGATIONS             TOTAL        0-30     31-60    61-90     91+
   ------------------           ---------   ---------   -----    -----   ------
ACCOUNTS PAYABLE                   13,360         (575)    --       --   13,935
TAXES PAYABLE                      62,111       62,111
ACCRUED SALARIES AND BENEFITS   1,021,490    1,021,490
PREPAID TUITION AND DEPOSITS      885,141      885,141
SECURED DEBT
OTHER (ATTACH LIST)
                                ---------   ----------   ----     ----   ------
TOTAL POST-PETITION
     LIABILITIES                1,982,102    1,968,168     --       --   13,935
                                =========   ==========   ====     ====   ======

PAYMENTS TO INSIDERS AND PROFESSIONALS

                                    INSIDERS
                                                         AMOUNT PD      TOTAL PD
NAME                  REASON FOR PAYMENT                THIS MONTH      TO DATE
----                  ------------------                ----------      -------
Lucian Spataro        Wages and Exp. Reimbursement              --    129,134.79
Ernie Recsetar        Wages                                     --     22,000.00
Michael Lynch         Wages and Exp. Reimbursement       15,839.79    138,313.35
Gary Lilyquist        Wages and Exp. Reimbursement              --     80,239.99
                                                        ----------   -----------
TOTAL PAYMENTS TO INSIDERS                               15,839.79    369,688.13
                                                        ==========   ===========

                                  PROFESSIONALS

                      DATE OF COURT                           TOTAL
                    ORDER AUTHORIZING   AMOUNT     AMOUNT   TOTAL PAID  INCURRED
NAME                     PAYMENT       APPROVED     PAID     TO DATE    & UNPAID
----                     -------       --------     ----     -------    --------
Bryan Cave                                    0          0  47,759.54
Engleman & Berger, PC                         0          0  49,127.11

6

CASE NUMBER: B-00-10938-ECF-RTB                                  CASE STATUS

QUESTIONNAIRE
                                                                YES        NO
                                                                ---        --
HAVE ANY FUNDS BEEN DISBURSED FROM ANY
ACCOUNT OTHER THAN A DEBTOR IN POSSESSION
ACCOUNT?                                                                   NO

ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS,
NOTES, OR LOANS) DUE FROM RELATED PARTIES?                                 NO

ARE ANY WAGE PAYMENTS PAST DUE?                                            NO

ARE ANY U.S. TRUSTEE QUARTERLY FEES
DELINQUENT?                                                                NO

CURRENT NUMBER OF EMPLOYEES: 78

INSURANCE

                    CARRIER AND    PERIOD    EXPIRATION     PAYMENT AMOUNT
TYPE OF POLICY     POLICY NUMBER   COVERED      DATE         & FREQUENCY
--------------     -------------   -------      ----         -----------
Gen Liability      CLI0020446      3/1/2001   7/31/2001    Paid in full
Auto Liability     70APN164181     3/1/2001   7/31/2001    Paid in full
Excess Liability   UMI0000567      3/1/2001   7/31/2001    Paid in full
Workers Comp       307512-4       12/1/2000  11/30/2001    Monthly as a % of PR
Blanket Contents   59UUMUN3158     3/1/2001   7/31/2001    Paid in full

WHAT STEPS HAVE BEEN TAKEN TO REMEDY ANY OF THE PROBLEMS THAT BROUGHT ABOUT THE CHAPTER 11 FILING?

Purchasing of new schools has ceased, and administrative expenses have been reduced. Other restructuring measures are being considered.

LIST ANY MATTERS THAT ARE DELAYING THE FILING OF A PLAN OF REORGANIZATION?

7

THE TESSERACT GROUP, INC.
CONSOLIDATED CASH FLOW ANALYSIS

                                                                    Total For
                                                                    June 2001
                                                                  -------------

BEGINNING FUNDS AVAILABLE:                                        $  825,376.87
                                                                  -------------

Cash In:  Telecheck                                               $  210,153.45
          Credit Card Deposit (Preschools)                           426,294.78
          Credit Card Deposit (Private)                                  831.02
          Credit Card Deposit (Charter)                                      --
          Regular Deposits (Preschools)                              417,960.63
          Regular Deposits (Private)                                   7,734.89
          Regular Deposits (Charter)                                 120,169.38
          Regular Deposits (Corporate)                                 9,851.39
          Other  Deposit (Charter)                                           --
          Interest                                                       568.07
          Interest on LTC Acct                                               --
          Voids                                                          815.00
                                                                  -------------
Daily Cash In:                                                    $1,194,378.61
                                                                  =============

Cash Out: Preschool A/P                                           $  398,788.18
          Charter A/P                                                  5,128.25
          Private A/P                                                        --
          Corporate A/P                                              119,316.76
          TesseracT Payroll                                          165,526.57
          Preschool Payroll                                          456,029.26
          Charter Payroll                                            123,240.79
          College PR                                                         --
          Preschool NSF                                                  329.00
          Medical Claims                                                     --
          Banking and Payroll Fees                                    21,055.14
          LTC Payment                                                        --
          LTC Fees                                                           --
                                                                  -------------
Daily Cash Out:                                                   $1,289,413.95
                                                                  =============

Net Cash In/Out:                                                  $  (95,035.34)
                                                                  -------------

ENDING FUNDS AVAILABLE:                                           $  730,341.53
                                                                  =============

8

THE TESSERACT GROUP, INC.
CASH FLOW ANALYSIS
B-00-10938-ECF-RTB

                                                                    Total For
                                                                    June 2001
                                                                  ------------

BEGINNING FUNDS AVAILABLE:                                        $ 651,600.84
                                                                  ------------

Cash In: Credit Card Deposit (Private)                            $     831.02
         Credit Card Deposit (Charter)                                      --
         Regular Deposits (Private)                                   7,734.89
         Regular Deposits (Charter)                                 120,169.38
         Regular Deposits (Corporate)                                 9,851.39
         Other Deposit (Charter)                                            --
         Interest                                                       568.07
                                                                  ------------
Daily Cash In:                                                    $ 139,154.75
                                                                  ============


Cash Out: Charter A/P                                             $   5,128.25
          Private A/P                                                       --
          Corporate A/P                                             119,316.76
          Corporate A/P (allocated to Sunrise)                      (59,658.38)
          TesseracT Payroll                                         165,526.57
          Charter Payroll                                           123,240.79
          Medical Claims                                                    --
          Banking Fees                                               21,055.14
          LTC Payment                                                       --
          Voids                                                        (815.00)
                                                                  ------------

Daily Cash Out:                                                   $ 373,794.13
                                                                  ============

Net Cash In/Out:                                                  $(234,639.38)
                                                                  ------------

ENDING FUNDS AVAILABLE:                                           $ 416,961.46
                                                                  ============

9

Corporate Company
VENDOR CHECK REGISTER REPORT
Payables Management

* Voided Checks

                                                                                                      Audit
Check Number           Vendor ID       Vendor Check Name                Check Date   Checkbook ID   Trail Code          Amount
------------           ---------       -----------------                ----------   ------------   ----------          ------
200012899              AT&T78522-B     AT&T - 78225                           6/1/01   OPERATING2    PMCHK00000265        $14.85
200012900              FEDEXP000-B     FEDERAL EXPRESS                        6/1/01   OPERATING2    PMCHK00000265       $158.48
200012901              WELFAR003-B     WELLS FARGO (MN)                       6/1/01   OPERATING2    PMCHK00000265       $710.53
200012902              AMEPRI000-B     AMERIPRIDE LINEN AND APPAREL           6/4/01   OPERATING2    PMCHK00000266        $23.98
200012903              AT&TPHO00-B     AT&T PHOENIX-78225                     6/4/01   OPERATING2    PMCHK00000266         $3.23
200012904              ATTGA0000-B     ATT-GA-277019                          6/4/01   OPERATING2    PMCHK00000266       $752.40
200012905              SHAFOO000-B     SHAMROCK FOODS COMPANY                 6/4/01   OPERATING2    PMCHK00000266        $57.58
200012906              LYN000000-B     LYNCH,MICHAEL                          6/5/01   OPERATING2    PMCHK00000267       $726.04
200012907              UNIOMA000-B     UNITED OF OMAHA                        6/6/01   OPERATING2    PMCHK00000268     $6,455.17
200012908              FEDEXP000-B     FEDERAL EXPRESS                        6/8/01   OPERATING2    PMCHK00000269        $48.88
200012909              IKOOFF003-B     IKON OFFICE SOLUTIONS (CA)             6/8/01   OPERATING2    PMCHK00000269       $118.89
200012910              KP0LIM000-B     KP LIMITED INC                         6/8/01   OPERATING2    PMCHK00000269        $77.18
200012911              RIVJUD000-B     JUDI RIVERA                            6/8/01   OPERATING2    PMCHK00000269        $15.22
200012912              SUMSCH000-B     SUMMIT SCHOOL OF AHWATUKEE             6/8/01   OPERATING2    PMCHK00000269     $1,372.43
200012913              APS200000-B     APS - 2907                             6/8/01   OPERATING2    PMCHK00000270     $6,825.44
200012914              CITSCOUTI-B     CITY OF SCOTTSDALE-UTILITIES           6/8/01   OPERATING2    PMCHK00000270     $1,169.32
200012915              DOCTEC000-B     DOCUMENT TECHNOLOGIES                  6/8/01   OPERATING2    PMCHK00000270     $1,123.93
200012916              PARWAS000-B     PARADISE WASTE SERVICES                6/8/01   OPERATING2    PMCHK00000270        $52.86
200012917              US0WES003-B     US WEST COMMUNICATIONS-29060           6/8/01   OPERATING2    PMCHK00000270     $1,023.47
200012918              MUTOMA001-B     MUTUAL OMAHA-NE                       6/11/01   OPERATING2    PMCHK00000271    $23,019.14
200012919              MUTOMA001-B     MUTUAL OMAHA-NE                       6/11/01   OPERATING2    PMCHK00000272    $10,901.03
200012920              BONJAM000-B     JAMES BONFIGLIO                       6/12/01   OPERATING2    PMCHK00000273     $2,925.00
200012921              PARCHR001-B     CHRISTINE PARADIS                     6/13/01   OPERATING2    PMCHK00000274       $500.00
200012922              MAN FIN000-B    MANULIFE FINANCIAL                    6/15/01   OPERATING2    PMCHK00000275     $2,693.52
200012923              MAN FIN000-B    MANULIFE FINANCIAL                    6/15/01   OPERATING2    PMCHK00000275     $2,236.77
200012924              CULWAT000-B     CULLIGAN WATER COND                   6/18/01   OPERATING2    PMCHK00000276        $24.91
200012925              KP0LIM000-B     KP LIMITED INC                        6/18/01   OPERATING2    PMCHK00000276       $483.44
200012926              PROONE000-B     PROTECTION ONE - AZ                   6/18/01   OPERATING2    PMCHK00000276        $46.84
200012927              FEDEXP000-B     FEDERAL EXPRESS                       6/18/01   OPERATING2    PMCHK00000277       $113.90
200012928              IMPFIN000-B     IMPERIAL FINANCIAL PRINTING           6/18/01   OPERATING2    PMCHK00000277       $195.50
200012929              KP0LIM000-B     KP LIMITED INC                        6/18/01   OPERATING2    PMCHK00000277       $530.67
200012930              LANMAR000-B     MARK LANE                             6/18/01   OPERATING2    PMCHK00000277        $30.51
200012931              MOOBRI000-B     MOORE, BRIAN                          6/18/01   OPERATING2    PMCHK00000277        $64.49
200012932              THEHAR000-B     THE HARTFORD                          6/18/01   OPERATING2    PMCHK00000277     $1,203.19
200012933              US0WES003-B     US WEST COMMUNICATIONS-29060          6/18/01   OPERATING2    PMCHK00000277       $238.21
200012935              ARC000000-B     ARC                                   6/21/01   OPERATING2    PMCHK00000278       $705.39
200012936              EMPUNI000-B     EMPLOYERS UNITIY INC                  6/21/01   OPERATING2    PMCHK00000279       $643.75
200012937              LYN000000-B     LYNCH,MICHAEL                         6/21/01   OPERATING2    PMCHK00000279     $2,186.59
200012938              MUTOMA001-B     MUTUAL OMAHA-NE                       6/21/01   OPERATING2    PMCHK00000279       $351.03
200012939              FEDEXP000-B     FEDERAL EXPRESS                       6/22/01   OPERATING2    PMCHK00000280       $291.46
200012940              KP0LIM000-B     KP LIMITED INC                        6/22/01   OPERATING2    PMCHK00000280       $530.67
200012941              SHUAHW000-B     SHRGARD OF AHWATUKEE                  6/22/01   OPERATING2    PMCHK00000280       $296.91
200012942              CIGEMP000-B     CIGNA EMPLOYEE BENE-PPO               6/26/01   OPERATING2    PMCHK00000281     $1,977.34
200012943              CONGEN000-B     CONNECTICUT GENERAL LIFE              6/26/01   OPERATING2    PMCHK00000281    $39,251.67
200012944              CONGENLIF-B     CONNECTICUT GENERAL LIFE-DENT         6/26/01   OPERATING2    PMCHK00000281     $3,138.19
200012945              MOOBRI000-B     MOORE, BRIAN                          6/29/01   OPERATING2    PMCHK00000282       $500.00
200012946              SHE000000-B     SHEARER,DAN                           6/29/01   OPERATING2    PMCHK00000282       $500.00
200012947              ADMRES000-B     ADMINISTRATIVE RESOURCES & CO    N 06/29/2001   OPERATING2    PMCHK00000283       $150.48
200012948              ADMRES000-B     ADMINISTRATIVE RESOURCES & CO    N 06/29/2001   OPERATING2    PMCHK00000283       $162.64
200012949              ARC000000-B     ARC                                   6/29/01   OPERATING2    PMCHK00000283       $100.00
200012950              MAN FIN000-B    MANULIFE FINANCIAL                    6/29/01   OPERATING2    PMCHK00000283     $1,622.79
200012951              SPEINC000-B     SPECTERA, INC.                        6/29/01   OPERATING2    PMCHK00000283       $970.85
                                                                                                                     -----------
Total Checks: 52                                                                          Total Amount of Checks:    $119,316.76
                                                                                                                     ===========

10

Owned Charters
VENDOR CHECK REGISTER REPORT
Payables Management

* Voided Checks

                                                                                               Audit
Check Number   Vendor ID        Vendor Check Name                Check Date   Checkbook ID   Trail Code         Amount
------------   ---------        -----------------                ----------   ------------   ----------         ------
800050505      APS200000-B      APS - 2907                          6/4/01     OPERATING      PMCHK00000078     $1,047.02
800050506      MANLIF000-B      MANULIFE FINNANCIAL                 6/4/01     OPERATING      PMCHK00000078       $344.21
800050507      SLAJAC000-B      JACK SLATE                          6/4/01     OPERATING      PMCHK00000078       $111.86
800050508      US0WES003-B      US WEST COMMUNICATIONS-29060        6/4/01     OPERATING      PMCHK00000078       $447.79
800050509      DOCTEC000-B      DOCUMENT TECHNOLOGIES               6/8/01     OPERATING      PMCHK00000080       $388.60
800050510      PROOFF000-B      PRO OFFICE EQUIPMENT, INC.          6/8/01     OPERATING      PMCHK00000080       $223.59
800050511      SOUGAS000-B      SOUTHWEST GAS CORPORATION           6/8/01     OPERATING      PMCHK00000080        $21.68
800050513      MANLIF000-B      MANULIFE FINNANCIAL                6/15/01     OPERATING      PMCHK00000082       $118.06
800050514      CITPHOWAT-B      CITY OF PHOENIX (WATER SVCS)2      6/18/01     OPERATING      PMCHK00000083       $432.14
800050515      KP0LIM000-B      KP LIMITED INC                     6/18/01     OPERATING      PMCHK00000083       $470.61
800050516      THEHAR000-B      THE HARTFORD                       6/18/01     OPERATING      PMCHK00000083     $1,203.19
800050518      MANLIF000-B      MANULIFE FINNANCIAL                6/22/01     OPERATING      PMCHK00000085       $118.06
800050519      CITSIEVI2-B      CITY OF SIERRA VISTA               6/22/01     OPERATING      PMCHK00000086        $17.45
800050520      CRAVER000-B      VERONICA CRAMER                    6/22/01     OPERATING      PMCHK00000086        $35.19
800050521      HUNLIL000-B      HUNT, LILLIAN                      6/22/01     OPERATING      PMCHK00000086        $24.80
800050522      MAHBAR000-B      BARBARA MAHOOD                     6/22/01     OPERATING      PMCHK00000086       $124.00
                                                                                                                ---------
Total Checks: 16                                                                    Total Amount of Checks:     $5,128.25
                                                                                                                =========

11

Exhibit 99.3

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF ARIZONA

In re: ) CASE NO. B-00-10939-ECF-RTB

)

SUNRISE EDUCATIONAL SERVICES ) BUSINESS AND INDUSTRY

) MONTHLY OPERATING REPORT
)
) MONTH OF JUNE
)

Debtor(s) ) DATE PETITION FILED: October 6, 2000 )
) TAX PAYER ID NO. 4101581297

Nature of Debtor's Business: For Profit Educational Services

DATE DISCLOSURE STATEMENT:    FILED Not Yet Filed   TO BE FILED To Be Determined
                                    -------------               ----------------
DATE PLAN OF REORGANIZATION:  FILED Not Yet Filed   TO BE FILED To Be Determined
                                    -------------               ----------------

I CERTIFY UNDER PENALTY OF PERJURY THAT THE FOLLOWING  MONTHLY  OPERATING REPORT
AND  THE  ACCOMPANYING  ATTACHMENTS  ARE  TRUE  AND  CORRECT  TO THE  BEST OF MY
KNOWLEDGE.

RESPONSIBLE  PARTY:

                                                                         CEO
---------------------------------------                               ----------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY                                 TITLE

Michael Lynch
---------------------------------------                               ----------
PRINTED NAME OF RESPONSIBLE PARTY                                       DATE

PREPARER:

                                                                      Controller
---------------------------------------                               ----------
ORIGINAL SIGNATURE OF PREPARER                                          TITLE

Douglass E. Snell
---------------------------------------                               ----------
PRINTED NAME OF PREPARER                                                 DATE

PERSON TO CONTACT REGARDING THIS REPORT: Douglass E. Snell
                                         ---------------------------------------
                           PHONE NUMBER: 480-783-4317
                                         ---------------------------------------
                                ADDRESS: 4515 E. Muirwood Dr.
                                         Phoenix, AZ 85048
                                         ---------------------------------------

                   ORIGINAL OF REPORT IS FILED WITH THE COURT,
                    COPY IS FILED WITH U.S. TRUSTEE'S OFFICE


SUNRISE EDUCATIONAL SERVICES, INC.
B-00-10939-ECF-RTB MONTH: JUNE 2001

RECEIPTS AND DISBURSEMENTS

BANK ACCOUNTS

Amounts reported should be               SUNRISE     SUNRISE PMTS
per the debtor's books,                 OPERATING      MADE BY
not per the bank statement            #052-978-7889   TESSERACT        TOTAL
                                      -------------   ---------   --------------
ACCOUNT BALANCE -
BEGINNING OF MONTH                              --                            --

RECEIPTS
  STUDENT FEES                                                                --
  CHARTER SCHOOL REVENUE                                                      --
  ACCOUNTS RECEIVABLE                                                         --
  LOANS AND ADVANCES                                                          --
  SALE OF ASSETS                                                              --
  TRANSFERS IN FROM OTHER ACCOUNTS      398,788.18     515,687.64     914,475.82
  TRANSFERS IN FROM OTHER ACCOUNTS                                            --

       TOTAL RECEIPTS                   398,788.18     515,687.64     914,475.82

DISBURSEMENTS
  BUSINESS - ORDINARY OPERATIONS        398,788.18                    398,788.18
  CAPITAL IMPROVEMENTS                                                        --
  PRE-PETITION DEBT                                                           --
  TRANSFERS TO OTHER DIP ACCOUNTS                                             --
  PAYMENTS MADE FOR SUNRISE EDU                        515,687.64     515,687.64
  OTHER (ATTACH LIST)                                                         --
  REORGANIZATION EXPENSES:
  ATTORNEY FEES                                                               --
  ACCOUNTANT FEES                                                             --
  OTHER PROFESSIONAL FEES                                                     --
  U.S. TRUSTEE QUARTERLY FEE                                                  --
  COURT COSTS                                                                 --
     TOTAL DISBURSEMENTS                398,788.18     515,687.64     914,475.82
                                        ----------     ----------     ----------
ACCOUNT BALANCE -
END OF MONTH                                    --             --             --
                                        ==========     ==========     ==========

                    THE FOLLOWING SECTION MUST BE FILLED OUT

DISBURSEMENTS FOR CALCULATING QUARTERLY FEES:
 TOTAL DISBURSEMENTS FROM ABOVE                                       914,475.82
  LESS: TRANSFERS OUT TO OTHER DIP ACCOUNTS                                   --
 PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES
                                                                      ----------
 TOTAL DISBURSEMENTS FOR CALCULATING QUARTERLY FEES:                  914,475.82
                                                                      ==========

2

                       Sunrise Educational Services, Inc.
                             Statement of Operations
                       For the Month Ending June 30, 2001

Revenue
Tuition and Fees Revenue                                          $1,045,548.14
Government Revenue                                                    92,061.84
Food Revenue                                                           3,334.90
Discounts                                                           (142,286.85)
Refunds/Returns                                                         (275.30)
                                                                  -------------

Total Revenue                                                        998,382.73
                                                                  -------------

Operational Costs
Salaries and Wages                                                   453,574.65
Taxes and Benefits                                                    54,597.01
Classroom Expenses                                                     6,834.01
Food Programs Expense                                                 37,495.20
Grants/Fee Expense                                                       585.20
Transportation Expenses                                               14,373.39
Maintenance Expense                                                   65,941.28
Insurance Expense                                                     22,614.54
Rent Expense                                                         207,690.54
Security Services Expense                                              3,483.88
Personal Property Tax Expense                                          1,542.84
Real Property Tax Expense                                              6,007.62
Utilities Expense                                                     23,266.21
                                                                  -------------

Total Operational Costs                                              898,006.37
                                                                  -------------

General & Administrative Costs
Advertising, Mktg, Promo Exp                                           2,628.32
Bad Debt Expense                                                      13,854.58
Bank Charges/Processing Fees-A                                        17,000.63
Computer/Technology Expense                                            7,817.69
Licenses & Fees Expense                                                1,402.41
Office/School Supplies Expense                                         2,716.30
Penalties and Late Fee Charges                                               --
Postage and Printing Expense                                             284.75
Pre-Employment Expense                                                 1,027.00
Telephone Expense                                                      7,546.48
Travel Expense                                                         1,357.06
Allocated Corporate Overhead                                         186,785.00
Other Expenses                                                         1,084.21
                                                                  -------------

Total General and Administrative Expenses                            243,504.43
                                                                  -------------

Gain (Loss) on Disposal of Assets                                            --
Interest Expense                                                             --
Other Income (Expense)                                                       --
                                                                  -------------

Net Interest and Other Income (Expense)                                      --
                                                                  -------------

Depreciation Expense                                                  14,214.80
                                                                  -------------

Total Depreciation and Amortization                                   14,214.80
                                                                  -------------

Reorganization Expenses
Bankruptcy Fees                                                              --
Professional Fees Allocated                                                  --
                                                                  -------------

Total Reorganization Expenses                                                --
                                                                  -------------

Net Income                                                        $ (157,342.87)
                                                                  =============

3

Sunrise Educational Services, Inc. Balance Sheet June 30, 2001

ASSETS

Current Assets
Cash and Cash Equivalents                                         $    9,991.29
Accounts Receivable, net                                             397,149.81
Prepaid Rent                                                         216,750.02
Other Current Assets                                                  14,294.44
                                                                  -------------

Total Current Assets                                                 638,185.56

Due From Tesseract                                                   969,876.77
Property and Equipment, net                                          825,501.67
Deposits and Other Assets                                            163,288.42
                                                                  -------------

Total Assets                                                      $2,596,852.42
                                                                  =============

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities
Accounts Payable                                                  $   48,064.70
Checks in Process of Collection                                      255,573.69
Payroll and Related Accruals                                         428,950.06
Deferred Revenue and Tuition Deposits                                 59,298.63
                                                                  -------------

Total Current Liabilities                                            791,887.08
                                                                  -------------

Pre-Petition Liabilities
Accounts Payable                                                     664,382.01
Other Current Liabilities                                            138,968.45
Long-Term Debt                                                         5,546.62
                                                                  -------------

Total Pre-Petition Liabilities                                       808,897.08
                                                                  -------------

Reserve for Closed Schools                                           143,661.34
Other Long-Term Obligations                                          274,439.09
                                                                  -------------

Total Long-Term Liabilities                                          418,100.43
                                                                  -------------

Total Liabilities                                                  2,018,884.59
                                                                  -------------

Shareholders' Equity
Pre-Petition Shareholders' Equity                                  1,156,067.94
Post Petition Retained Deficit                                      (578,100.11)
                                                                  -------------

Total Shareholders' Equity                                           577,967.83
                                                                  -------------

Total Liabilities and Shareholders' Equity                        $2,596,852.42
                                                                  =============

                                        4

CASE NUMBER: B-00-10939-ECF-RTB                     STATUS OF ASSETS


                                                      0-30      31-60     60+
ACCOUNTS RECEIVABLE                        TOTAL      DAYS      DAYS      DAYS
-------------------                        -----      ----      ----      ----
TOTAL ACCOUNTS RECEIVABLE                 397,150   377,807    12,790     6,553
 LESS: AMOUNT CONSIDERED UNCOLLECTIBLE
ACCOUNTS RECEIVABLE (NET)                 397,150   377,807    12,790     6,553

                               SCHEDULED                                CURRENT
FIXED ASSETS                    AMOUNT      ADDITIONS     DELETIONS      AMOUNT
------------                    ------      ---------     ---------      ------

REAL PROPERTY
BUILDING IMPROVEMENTS/PLANT   1,020,140       56,214       293,926      782,429
ACCUMULATED DEPRECIATION       (413,993)    (115,058)     (156,974)    (372,077)
NET BUILDINGS/PLANT             606,147      (58,844)      136,952      410,352

EQUIPMENT                       755,300       24,266       290,389      489,178
ACCUMULATED DEPRECIATION       (511,115)    (130,029)     (318,916)    (322,228)
NET EQUIPMENT                   244,186     (105,763)      (28,527)     166,950

AUTOS & VEHICLES                953,839      953,839
ACCUMULATED DEPRECIATION       (625,670)     (79,967)     (705,637)
NET AUTOS & VEHICLES            328,170      (79,967)           --      248,202

5

CASE NUMBER: B-00-10939-ECF-RTB             STATUS OF LIABILITIES
                                            AND SENSITIVE PAYMENTS

     POSTPETITION
   UNPAID OBLIGATIONS             TOTAL       0-30     31-60    61-90      91+
   ------------------             -----       ----     -----    -----     -----

ACCOUNTS PAYABLE                 48,065     43,494        --       --     4,571
TAXES PAYABLE                    36,545     36,545
ACCRUED PAYROLL AND BENEFITS    392,405    392,405
PREPAID TUITION                  59,299     59,299
SECURED DEBT
OUTSTANDING A/P CHECKS          255,574    255,574
OTHER (ATTACH LIST)
                                -------    -------       ---      ---     -----
TOTAL POSTPETITION
     LIABILITIES                791,887    787,316        --       --     4,571
                                =======    =======       ===      ===     =====

PAYMENTS TO INSIDERS AND PROFESSIONALS

                                    INSIDERS

                                                       AMOUNT PD     TOTAL PD
NAME                          REASON FOR PAYMENT      THIS MONTH     TO DATE
----                          ------------------      ----------     -------
NONE


TOTAL PAYMENTS TO INSIDERS                                    --          --

                                  PROFESSIONALS

         DATE OF COURT                                                   TOTAL
       ORDER AUTHORIZING    AMOUNT         AMOUNT      TOTAL PAID       INCURRED
NAME       PAYMENT         APPROVED         PAID        TO DATE         & UNPAID
----       -------         --------         ----        -------         --------

NONE

6

CASE NUMBER: B-00-10939-ECF-RTB                                 CASE STATUS

QUESTIONNAIRE
                                                              YES          NO
                                                              ---          --
HAVE ANY FUNDS BEEN DISBURSED FROM ANY
ACCOUNT OTHER THAN A DEBTOR IN POSSESSION
ACCOUNT?                                                                   NO

ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS,
NOTES, OR LOANS) DUE FROM RELATED PARTIES?                                 NO

ARE ANY WAGE PAYMENTS PAST DUE?                                            NO

ARE ANY U.S. TRUSTEE QUARTERLY FEES
DELINQUENT?                                                                NO

CURRENT NUMBER OF EMPLOYEES: 458

INSURANCE
                    CARRIER AND    PERIOD     EXPIRATION   PAYMENT AMOUNT
TYPE OF POLICY     POLICY NUMBER   COVERED       DATE       & FREQUENCY
--------------     -------------   -------       ----       -----------
Gen Liability      CLI0020446      3/1/2001    7/31/2001    Paid in full
Auto Liability     70APN164181     3/1/2001    7/31/2001    Paid in full
Excess Liability   UMI0000567      3/1/2001    7/31/2001    Paid in full
Workers Comp       307512-4       12/1/2000   11/30/2001    Monthly as a % of PR
Blanket Contents   59UUMUN3158     3/1/2001    7/31/2001    Paid in full

WHAT STEPS HAVE BEEN TAKEN TO REMEDY ANY OF THE PROBLEMS THAT BROUGHT ABOUT THE CHAPTER 11 FILING?

Purchasing of new schools has ceased, and administrative expenses have been reduced. Other restructuring measures are being considered.

LIST ANY MATTERS THAT ARE DELAYING THE FILING OF A PLAN OF REORGANIZATION?

7

SUNRISE EDUCATIONAL SERVICES, INC.
CASH FLOW ANALYSIS
B-00-10939-ECF-RTB

BEGINNING FUNDS AVAILABLE:                                         $  173,776.03
                                                                   -------------

Cash In: Telecheck                                                 $  210,153.45
         Credit Card Deposit (Preschools)                             426,294.78
         Regular Deposits (Preschools)                                417,960.63
                                                                   -------------
Daily Cash In:                                                     $1,054,408.86
                                                                   =============

Cash Out: Preschool A/P                                            $  398,788.18
          Preschool Payroll                                           456,029.26
          Corporate A/P (allocated)                                    59,658.38
          Preschool NSF                                                   329.00
                                                                   -------------
Daily Cash Out:                                                    $  914,804.82
                                                                   =============

Net Cash In/Out:                                                   $  139,604.04
                                                                   -------------

ENDING FUNDS AVAILABLE:                                            $  313,380.07
                                                                   =============

8

Sunrise Preschools, Inc.
VENDOR CHECK REGISTER REPORT
Payables Management

* Voided Checks

                                                                                                  Audit
Check Number   Vendor ID      Vendor Check Name                    Check Date  Checkbook ID     Trail Code         Amount
------------   ---------      -----------------                    ----------  ------------     ----------         ------
100013332      AMKINC000      AMKORE INC.                             6/1/01    OPERATING        PMCHK00000140     $7,817.69
100013333      ARIAIR000      ARIZONA AIR-SCENT                       6/1/01    OPERATING        PMCHK00000141       $390.22
100013334      ARIREP000      ARIZONA REPUBLIC                        6/1/01    OPERATING        PMCHK00000141       $208.00
100013335      AT&T78522      AT&T - 78225                            6/1/01    OPERATING        PMCHK00000141        $62.14
100013336      CENLEA000      CENTENNIAL LEASING & SALES INC          6/1/01    OPERATING        PMCHK00000141       $408.65
100013338      CITPEO001      CITY OF PEORIA                          6/1/01    OPERATING        PMCHK00000141        $75.00
100013339      CITTEM000      CITY OF TEMPE                           6/1/01    OPERATING        PMCHK00000141       $255.00
100013340      FRYFOO000      FRY'S FOOD STORES                       6/1/01    OPERATING        PMCHK00000141       $204.29
100013341      KNO000000      KNOTT,MARILYN                           6/1/01    OPERATING        PMCHK00000141       $285.20
100013342      LAKLEA000-B    LAKESHORE LEARNING MATERIALS            6/1/01    OPERATING        PMCHK00000141     $1,175.41
100013343      LAUMAR000      MARK LAUER                              6/1/01    OPERATING        PMCHK00000141        $90.00
100013344      MANLIF000      MANULIFE FINANCIAL                      6/1/01    OPERATING        PMCHK00000141     $3,949.10
100013345      MARINF000-B    MARKET INFORMATION CENTER               6/1/01    OPERATING        PMCHK00000141       $133.75
100013346      MARWIL000      WILLIAM MAROE                           6/1/01    OPERATING        PMCHK00000141       $560.00
100013347      NICJUD000      Judy Niccum                             6/1/01    OPERATING        PMCHK00000141       $385.00
100013348      PURPOW000      PURCHASE POWER                          6/1/01    OPERATING        PMCHK00000141        $50.76
100013349      SLAJAC000      JACK SLATE                              6/1/01    OPERATING        PMCHK00000141     $1,264.66
100013350      SRP2950        SRP2950                                 6/1/01    OPERATING        PMCHK00000141     $2,682.59
100013351      STAFUN000      STATE FUND COMPENSATION                 6/1/01    OPERATING        PMCHK00000141     $5,674.00
100013352      WELFAR001      WELLS FARGO                             6/1/01    OPERATING        PMCHK00000141       $352.00
100013353      WESINN000      WESTERN INNOVATIONS INC                 6/1/01    OPERATING        PMCHK00000141     $6,000.00
100013354      CITGLN001      CITY OF GLENDALE                        6/5/01    OPERATING        PMCHK00000142        $40.00
100013355      CITGLN001      CITY OF GLENDALE                        6/5/01    OPERATING        PMCHK00000142        $40.00
100013356      CITGLN001      CITY OF GLENDALE                        6/5/01    OPERATING        PMCHK00000142       $104.00
100013357      CITGLN001      CITY OF GLENDALE                        6/5/01    OPERATING        PMCHK00000142       $160.00
100013358      LITPAR         Litchfield Parks & Recreation           6/5/01    OPERATING        PMCHK00000142       $416.00
100013359      LITPAR         Litchfield Parks & Recreation           6/5/01    OPERATING        PMCHK00000142       $416.00
100013360      US0FOO000      US FOODSERVICE                          6/7/01    OPERATING        PMCHK00000143     $9,939.39
100013361      ACTENT000      ACTION ENTRANCE, INC.                   6/8/01    OPERATING        PMCHK00000144       $259.01
100013362      APS200000      APS-2907                                6/8/01    OPERATING        PMCHK00000144     $1,509.06
100013363      ARIAIR000      ARIZONA AIR-SCENT                       6/8/01    OPERATING        PMCHK00000144       $839.57
100013365      CACJEN000      JENNIFER CACAO                          6/8/01    OPERATING        PMCHK00000144       $123.00
100013366      CITPHO788      CITY OF PHOENIX-78815                   6/8/01    OPERATING        PMCHK00000144        $74.00
100013367      CITPHOWAT      CITY OF PHOENIX (WATER SVCS)29          6/8/01    OPERATING        PMCHK00000144       $713.01
100013368      CLS000000      CLS/CLEANWAY                            6/8/01    OPERATING        PMCHK00000144       $150.00
100013369      DOCTEC000      DOCUMENT TECHNOLOGIES                   6/8/01    OPERATING        PMCHK00000144        $32.30
100013370      EXTCLE000      EXTRACTION CLEANING COMPANY             6/8/01    OPERATING        PMCHK00000144     $1,320.00
100013371      FEDEXP000      FEDERAL EXPRESS                         6/8/01    OPERATING        PMCHK00000144        $29.50
100013372      GECAP0003      GE CAPITAL                              6/8/01    OPERATING        PMCHK00000144       $283.34
100013373      HEASAV000      HEART SAVERS                            6/8/01    OPERATING        PMCHK00000144       $240.00
100013374      JETCON000      JET CONNECTION                          6/8/01    OPERATING        PMCHK00000144       $196.00
100013375      LAKLEA000-B    LAKESHORE LEARNING MATERIALS            6/8/01    OPERATING        PMCHK00000144     $1,286.75
100013376      NICJUD000      Judy Niccum                             6/8/01    OPERATING        PMCHK00000144       $700.00
100013377      NOP000000      NOPPENBERG,KAREN                        6/8/01    OPERATING        PMCHK00000144        $92.57
100013378      NUVROB000      ROBIN NUVAMSA                           6/8/01    OPERATING        PMCHK00000144       $176.30
100013379      PETSTA000      STACEY PETO                             6/8/01    OPERATING        PMCHK00000144       $123.69
100013380      PROUSA000      PROFORCE USA                            6/8/01    OPERATING        PMCHK00000144    $16,141.86
100013381      Q0MINC000      Q-MATRIX INC                            6/8/01    OPERATING        PMCHK00000144       $124.00
100013382      REDSER000      REDDI SERVICES                          6/8/01    OPERATING        PMCHK00000144       $781.74
100013383      SOUGAS000      SOUTHWEST GAS CORPORATION               6/8/01    OPERATING        PMCHK00000144        $18.52
100013384      SRP2950        SRP2950                                 6/8/01    OPERATING        PMCHK00000144     $1,612.29
100013385      STRPLU000      STRUSE PLUMBING INC.                    6/8/01    OPERATING        PMCHK00000144        $60.00
100013386      TOOLOR000      LORI TOOLEY                             6/8/01    OPERATING        PMCHK00000144        $49.29
100013387      US0WES003      US WEST COMMUNICATIONS-29060            6/8/01    OPERATING        PMCHK00000144     $2,334.14
100013388      VEL000000      VELA,DANA                               6/8/01    OPERATING        PMCHK00000144       $214.21
100013390      MOTVEH000      MOTOR VEHICLE DIVISION                  6/8/01    OPERATING        PMCHK00000145       $129.46
100013391      MOTVEH000      MOTOR VEHICLE DIVISION                  6/8/01    OPERATING        PMCHK00000145       $255.57
100013392      MOTVEH000      MOTOR VEHICLE DIVISION                  6/8/01    OPERATING        PMCHK00000145       $255.57
100013393      MOTVEH000      MOTOR VEHICLE DIVISION                  6/8/01    OPERATING        PMCHK00000145       $255.57
100013394      MOTVEH000      MOTOR VEHICLE DIVISION                  6/8/01    OPERATING        PMCHK00000145        $85.24
100013395      VIP000000      VIP                                     6/8/01    OPERATING        PMCHK00000145        $12.50
100013396      VIP000000      VIP                                     6/8/01    OPERATING        PMCHK00000145        $12.50
100013397      VIP000000      VIP                                     6/8/01    OPERATING        PMCHK00000145        $12.50
100013398      BANKAR000      KAREN BANNEN                           6/11/01    OPERATING        PMCHK00000146        $97.83
100013399      KRATER000      TERRILYNN KRAMER                       6/11/01    OPERATING        PMCHK00000146        $65.41
100013400      MAR000000      MARRO,GINNY                            6/11/01    OPERATING        PMCHK00000146        $56.20
100013401      SANSHE000      SHEILA SANVILLE                        6/11/01    OPERATING        PMCHK00000146        $60.52

9

Sunrise Preschools, Inc.
VENDOR CHECK REGISTER REPORT
Payables Management

* Voided Checks

                                                                                                  Audit
Check Number   Vendor ID      Vendor Check Name                    Check Date  Checkbook ID     Trail Code        Amount
------------   ---------      -----------------                    ----------  ------------     ----------        ------
100013402      THORAE000      THOMAS, RAE ANN                       6/11/01   OPERATING        PMCHK00000146        $74.21
100013403      SANBAR001      SANTA BARBARA BANK & TRUST            6/14/01   OPERATING        PMCHK00000147       $578.34
100013404      US0FOO000      US FOODSERVICE                        6/14/01   OPERATING        PMCHK00000148     $9,457.13
100013405      MANLIF000      MANULIFE FINANCIAL                    6/15/01   OPERATING        PMCHK00000149     $3,373.42
100013406      MAR000000      MARRO,GINNY                           6/15/01   OPERATING        PMCHK00000149       $100.00
100013407      MARJOE000      JOELY MARTIN                          6/15/01   OPERATING        PMCHK00000149       $358.67
100013408      ARIAIR000      ARIZONA AIR-SCENT                     6/18/01   OPERATING        PMCHK00000150        $70.95
100013409      ARIREP000      ARIZONA REPUBLIC                      6/18/01   OPERATING        PMCHK00000150       $280.00
100013410      BELVIS000      BELLA VISTA WATER COMPANY             6/18/01   OPERATING        PMCHK00000150       $185.86
100013411      CHEUSA000      CHEVRON USA INC                       6/18/01   OPERATING        PMCHK00000150     $5,324.95
100013412      CITGLEUTI      CITY OF GLENDALE - UTILITIES          6/18/01   OPERATING        PMCHK00000150       $379.58
100013413      CITPEOUTI      CITY OF PEORIA - UTILITIES            6/18/01   OPERATING        PMCHK00000150       $592.80
100013414      CITPHO788      CITY OF PHOENIX-78815                 6/18/01   OPERATING        PMCHK00000150       $296.00
100013415      CITPHOWAT      CITY OF PHOENIX (WATER SVCS)29        6/18/01   OPERATING        PMCHK00000150       $406.02
100013416      CITTEM000      CITY OF TEMPE                         6/18/01   OPERATING        PMCHK00000150       $170.00
100013417      CITTEM296      CITY OF TEMPE - 29617                 6/18/01   OPERATING        PMCHK00000150     $1,041.46
100013418      CLS000000      CLS/CLEANWAY                          6/18/01   OPERATING        PMCHK00000150       $450.00
100013419      COLLOC000      COLLINS LOCKSMITH                     6/18/01   OPERATING        PMCHK00000150        $65.00
100013420      CON000000      CONCENTRA                             6/18/01   OPERATING        PMCHK00000150       $858.00
100013421      GECAP0003      GE CAPITAL                            6/18/01   OPERATING        PMCHK00000150     $1,800.90
100013422      GREPLA000      Great Plains                          6/18/01   OPERATING        PMCHK00000150       $100.75
100013423      HEASAV000      HEART SAVERS                          6/18/01   OPERATING        PMCHK00000150        $84.00
100013424      HOMDEP000      HOME DEPOT                            6/18/01   OPERATING        PMCHK00000150     $2,612.49
100013425      HORDIS000      HORIZON DISTRIBUTION                  6/18/01   OPERATING        PMCHK00000150        $67.91
100013426      IROMOU000      IRON MOUNTAIN                         6/18/01   OPERATING        PMCHK00000150       $866.30
100013427      JAKBRE000      JAKE BREAK CAFE                       6/18/01   OPERATING        PMCHK00000150     $1,615.01
100013428      KINMGM000      KINNEY MANAGEMENT SERVICES            6/18/01   OPERATING        PMCHK00000150        $40.00
100013429      MARBRO000      BRONWYN MARMO                         6/18/01   OPERATING        PMCHK00000150       $239.50
100013430      MARINF000-B    MARKET INFORMATION CENTER             6/18/01   OPERATING        PMCHK00000150       $726.50
100013431      MESPAR000      MESA PARKS,RECREATION                 6/18/01   OPERATING        PMCHK00000150        $52.00
100013432      MPRCD000       MPRCD                                 6/18/01   OPERATING        PMCHK00000150        $52.00
100013433      NEWTIM000      NEW TIMES                             6/18/01   OPERATING        PMCHK00000150       $134.64
100013434      OPACS000       OPACS, INC                            6/18/01   OPERATING        PMCHK00000150        $28.00
100013435      OPECLE000      OPEN WORKS                            6/18/01   OPERATING        PMCHK00000150     $1,170.00
100013436      PACALA000      PACIFIC ALARMS COMPANY                6/18/01   OPERATING        PMCHK00000150        $65.00
100013437      PENSAV000      PENNYSAVER                            6/18/01   OPERATING        PMCHK00000150     $2,500.00
100013438      PHODIR/000     Phone Directories Company Inc.        6/18/01   OPERATING        PMCHK00000150       $304.50
100013439      Q0MINC000      Q-MATRIX INC                          6/18/01   OPERATING        PMCHK00000150     $2,294.71
100013440      RAIARI000      RAISING ARIZONA KIDS                  6/18/01   OPERATING        PMCHK00000150       $347.71
100013441      RANKAT000      RANDALL, KATHY                        6/18/01   OPERATING        PMCHK00000150       $518.63
100013442      ROAFIR000      ROADRUNNER FIRE & SAFETY              6/18/01   OPERATING        PMCHK00000150       $743.00
100013443      SRP2950        SRP2950                               6/18/01   OPERATING        PMCHK00000150     $2,213.57
100013444      TERINT000      TERMINEX INTERNATIONAL                6/18/01   OPERATING        PMCHK00000150       $764.00
100013445      THEHAR000      THE HARTFORD                          6/18/01   OPERATING        PMCHK00000150     $1,203.19
100013446      TOOLOR000      LORI TOOLEY                           6/18/01   OPERATING        PMCHK00000150       $305.99
100013447      U0CWIN000      U-C WINDOW CLEANING                   6/18/01   OPERATING        PMCHK00000150       $731.40
100013448      US0WES003      US WEST COMMUNICATIONS-29060          6/18/01   OPERATING        PMCHK00000150       $766.06
100013449      ENCOMP000      ENCOMPASS                             6/20/01   OPERATING        PMCHK00000151       $789.49
100013450      US0FOO000      US FOODSERVICE                        6/21/01   OPERATING        PMCHK00000152     $9,938.84
100013451      FODAND000      ANDREA FODOR                          6/22/01   OPERATING        PMCHK00000153       $400.00
100013452      TARJOZ000      JOZSEF TARSOLY                        6/22/01   OPERATING        PMCHK00000153     $1,000.00
100013453      MANLIF000      MANULIFE FINANCIAL                    6/22/01   OPERATING        PMCHK00000154     $3,123.46
100013454      APS200000      APS-2907                              6/22/01   OPERATING        PMCHK00000155     $7,315.52
100013455      AT&TWIR06      AT&T WIRELESS SERVICES-PHOENIX        6/22/01   OPERATING        PMCHK00000155     $2,796.98
100013456      BANONE003      BANK ONE ARIZONA NA                   6/22/01   OPERATING        PMCHK00000155       $206.32
100013457      BELSAM000      SAM BELNAP                            6/22/01   OPERATING        PMCHK00000155       $125.00
100013458      CITCHAUT1      CITY OF CHANDLER - UTILITIES          6/22/01   OPERATING        PMCHK00000155       $686.37
100013459      CITGLN001      CITY OF GLENDALE                      6/22/01   OPERATING        PMCHK00000155        $60.00
100013460      CITMESUTI      CITY OF MESA - UTILITIES - 187        6/22/01   OPERATING        PMCHK00000155       $129.36
100013461      CITPHOWAT      CITY OF PHOENIX (WATER SVCS)29        6/22/01   OPERATING        PMCHK00000155       $305.77
100013462      CLS000000      CLS/CLEANWAY                          6/22/01   OPERATING        PMCHK00000155    $10,436.91
100013463      FAMTIM000      FAMILY TIMES, INC.                    6/22/01   OPERATING        PMCHK00000155       $625.65
100013464      IKOOFF003      IKON OFFICE SOLUTIONS (CA)            6/22/01   OPERATING        PMCHK00000155        $36.75
100013465      JETCON000      JET CONNECTION                        6/22/01   OPERATING        PMCHK00000155       $253.00
100013466      LAKLEA000-B    LAKESHORE LEARNING MATERIALS          6/22/01   OPERATING        PMCHK00000155       $789.09
100013467      LITPAR         Litchfield Parks & Recreation         6/22/01   OPERATING        PMCHK00000155       $241.88
100013468      PACALA000      PACIFIC ALARMS COMPANY                6/22/01   OPERATING        PMCHK00000155       $335.00
100013469      Q0MINC000      Q-MATRIX INC                          6/22/01   OPERATING        PMCHK00000155     $1,900.34
100013470      SRP2950        SRP2950                               6/22/01   OPERATING        PMCHK00000155     $2,426.03
100013471      US0WES003      US WEST COMMUNICATIONS-29060          6/22/01   OPERATING        PMCHK00000155     $1,515.61
100013472      NOPMIK000      MIKE NOPPENBERG                       6/26/01   OPERATING        PMCHK00000156       $320.00
100013474      PANPRO000      PANTANO PRODUCE COMPANY               6/26/01   OPERATING        PMCHK00000158     $1,148.95
100013475      NOPMIK000      MIKE NOPPENBERG                       6/27/01   OPERATING        PMCHK00000159       $640.00
100013476      US0FOO000      US FOODSERVICE                        6/29/01   OPERATING        PMCHK00000160     $8,398.63

10

Sunrise Preschools, Inc.
VENDOR CHECK REGISTER REPORT
Payables Management

* Voided Checks

                                                                                                  Audit
Check Number   Vendor ID      Vendor Check Name                    Check Date  Checkbook ID     Trail Code         Amount
------------   ---------      -----------------                    ----------  ------------     ----------         ------
100013477      4DPROP000       4D PROPERTIES                       6/29/01      OPERATING       PMCHK00000161    $12,316.01
100013478      ANCVIL000       ANCALA VILLAGE SHOPPING CENTER      6/29/01      OPERATING       PMCHK00000161    $18,523.17
100013479      BLD7ZEL000      BLDG7UNION HILLS LLC                6/29/01      OPERATING       PMCHK00000161     $9,420.78
100013480      DERENT000       DER ENTERPRISES LLP                 6/29/01      OPERATING       PMCHK00000161    $15,131.93
100013481      DIVINS000       DIVALL INSURED INCOME PROP INC      6/29/01      OPERATING       PMCHK00000161    $11,418.37
100013482      MCCVEN003       MCCLINTOCK VENTURE LC               6/29/01      OPERATING       PMCHK00000161    $13,067.25
100013483      MELUS0000       MELLON US LEASING                   6/29/01      OPERATING       PMCHK00000161     $5,761.19
100013484      MESDEV000       MESA DEVELOPMENT INC                6/29/01      OPERATING       PMCHK00000161    $12,568.84
100013485      PEOINV000       PEORIA INVESTMENTS INC              6/29/01      OPERATING       PMCHK00000161    $18,202.23
100013486      SANVIL003       SANTIAGO VILLA  (#129)              6/29/01      OPERATING       PMCHK00000161    $13,836.33
100013487      SANVIL005       SANTIAGO VILLA  (#124)              6/29/01      OPERATING       PMCHK00000161    $14,980.76
100013488      SC0WAR000       SC WARNER TEMPE, INC.               6/29/01      OPERATING       PMCHK00000161    $13,475.11
100013489      SDMFAM000       SDM FAMILY CORP                     6/29/01      OPERATING       PMCHK00000161    $13,794.27
100013490      SUNPRE000       SUNRISE PRESCHOOL VI INVESTME       6/29/01      OPERATING       PMCHK00000161    $18,533.62
100013491      WELFAR002       WELLS FARGO BANK                    6/29/01      OPERATING       PMCHK00000161    $18,541.69
100013492      WILPRE000       WILLIS PRESCHOOL VI                 6/29/01      OPERATING       PMCHK00000161    $12,939.66
                                                                                                                -----------
Total Checks: 157                                                                     Total Amount of Checks:   $398,788.18
                                                                                                                ===========

11
BROKERAGE PARTNERS