Court filing
Monthly Operating Report — October 2022 — In re KServicing (Kabbage, Inc.) (Bankr. D. Del.)
Filed November 28, 2022 in Kservicing Bankruptcy; one of 140 filings from this case.
Record facts
| Court | U.S. Bankruptcy Court for the District of Delaware |
|---|---|
| Filed | 2022-11-28 |
U.S. Bankruptcy Court for the District of Delaware · No. 22-10951 · Doc. 292 · 2022-11-28 · Docket on CourtListener
Full text
UST Form 11-MOR (12/01/2021)
1
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
In Re. Kabbage, Inc. d/b/a KServicing
Debtor(s)
§
§
§
§
Case No. 22-10951
Lead Case No.
22-10951
Jointly Administered
Monthly Operating Report
Chapter 11
Reporting Period Ended: 10/31/2022
Petition Date: 10/03/2022
Months Pending: 1
Industry Classification:
5
2
2
3
Reporting Method:
Accrual Basis
Cash Basis
Debtor's Full-Time Employees (current):
19
Debtor's Full-Time Employees (as of date of order for relief):
19
Supporting Documentation (check all that are attached):
(For jointly administered debtors, any required schedules must be provided on a non-consolidated basis for each debtor)
Statement of cash receipts and disbursements
Balance sheet containing the summary and detail of the assets, liabilities and equity (net worth) or deficit
Statement of operations (profit or loss statement)
Accounts receivable aging
Postpetition liabilities aging
Statement of capital assets
Schedule of payments to professionals
Schedule of payments to insiders
All bank statements and bank reconciliations for the reporting period
Description of the assets sold or transferred and the terms of the sale or transfer
Signature of Responsible Party
Printed Name of Responsible Party
Date
Address
/s/ Zachary I. Shapiro
11/28/2022
Richards, Layton & Finger, P.A.
One Rodney Square
920 North Street
Wilmington, DE 19801
STATEMENT: This Periodic Report is associated with an open bankruptcy case; therefore, Paperwork Reduction Act exemption 5 C.F.R.
§ 1320.4(a)(2) applies.
Case 22-10951-CTG Doc 292 Filed 11/28/22 Page 1 of 22
UST Form 11-MOR (12/01/2021)
2
Debtor's Name Kabbage, Inc. d/b/a KServicing
Case No. 22-10951
Part 1: Cash Receipts and Disbursements
Current Month
Cumulative
a.
Cash balance beginning of month
$37,457,286
b.
Total receipts (net of transfers between accounts)
$6,952,061
$6,952,061
c.
Total disbursements (net of transfers between accounts)
$25,292,819
$25,292,819
d.
Cash balance end of month (a+b-c)
$19,116,529
e.
Disbursements made by third party for the benefit of the estate
$0
$0
f.
Total disbursements for quarterly fee calculation (c+e)
$25,292,819
$25,292,819
Part 2: Asset and Liability Status
Current Month
(Not generally applicable to Individual Debtors. See Instructions.)
a.
Accounts receivable (total net of allowance)
$0
b.
Accounts receivable over 90 days outstanding (net of allowance)
$0
c.
Inventory
(
(attach explanation))
Book
Market
Other
$0
d
Total current assets
$20,532,364
e.
Total assets
$586,009,857
f.
Postpetition payables (excluding taxes)
$20,368,649
g.
Postpetition payables past due (excluding taxes)
$0
h.
Postpetition taxes payable
$0
i.
Postpetition taxes past due
$0
j.
Total postpetition debt (f+h)
$20,368,649
k.
Prepetition secured debt
$528,991,414
l.
Prepetition priority debt
$0
m.
Prepetition unsecured debt
$506,100
n.
Total liabilities (debt) (j+k+l+m)
$549,866,163
o.
Ending equity/net worth (e-n)
$36,143,694
Part 3: Assets Sold or Transferred
Current Month
Cumulative
a.
Total cash sales price for assets sold/transferred outside the ordinary
course of business
$0
$0
b.
Total payments to third parties incident to assets being sold/transferred
outside the ordinary course of business
$0
$0
c.
Net cash proceeds from assets sold/transferred outside the ordinary
course of business (a-b)
$0
$0
Part 4: Income Statement (Statement of Operations)
Current Month
Cumulative
(Not generally applicable to Individual Debtors. See Instructions.)
a.
Gross income/sales (net of returns and allowances)
$2,002,708
b.
Cost of goods sold (inclusive of depreciation, if applicable)
$0
c.
Gross profit (a-b)
$2,002,708
d.
Selling expenses
$0
e.
General and administrative expenses
$3,255,875
f.
Other expenses
$-18,474,692
g.
Depreciation and/or amortization (not included in 4b)
$0
h.
Interest
$161,463
i.
Taxes (local, state, and federal)
$25,400
j.
Reorganization items
$3,352,887
k.
Profit (loss)
$13,681,775
$13,681,775
Case 22-10951-CTG Doc 292 Filed 11/28/22 Page 2 of 22
UST Form 11-MOR (12/01/2021)
3
Debtor's Name Kabbage, Inc. d/b/a KServicing
Case No. 22-10951
Part 5: Professional Fees and Expenses
Approved
Current Month
Approved
Cumulative
Paid Current
Month
Paid
Cumulative
a.
Debtor's professional fees & expenses (bankruptcy) Aggregate Total
Itemized Breakdown by Firm
Firm Name
Role
i
ii
iii
iv
v
vi
vii
viii
ix
x
xi
xii
xiii
xiv
xv
xvi
xvii
xviii
xix
xx
xxi
xxii
xxiii
xxiv
xxv
xxvi
xxvii
xxviii
xxix
xxx
xxxi
xxxii
xxxiii
xxxiv
xxxv
xxxvi
Case 22-10951-CTG Doc 292 Filed 11/28/22 Page 3 of 22
UST Form 11-MOR (12/01/2021)
4
Debtor's Name Kabbage, Inc. d/b/a KServicing
Case No. 22-10951
xxxvii
xxxvii
xxxix
xl
xli
xlii
xliii
xliv
xlv
xlvi
xlvii
xlviii
xlix
l
li
lii
liii
liv
lv
lvi
lvii
lviii
lix
lx
lxi
lxii
lxiii
lxiv
lxv
lxvi
lxvii
lxviii
lxix
lxx
lxxi
lxxii
lxxiii
lxxiv
lxxv
lxxvi
lxxvii
lxxvii
Case 22-10951-CTG Doc 292 Filed 11/28/22 Page 4 of 22
UST Form 11-MOR (12/01/2021)
5
Debtor's Name Kabbage, Inc. d/b/a KServicing
Case No. 22-10951
lxxix
lxxx
lxxxi
lxxxii
lxxxii
lxxxiv
lxxxv
lxxxvi
lxxxvi
lxxxvi
lxxxix
xc
xci
xcii
xciii
xciv
xcv
xcvi
xcvii
xcviii
xcix
c
ci
Approved
Current Month
Approved
Cumulative
Paid Current
Month
Paid
Cumulative
b.
Debtor's professional fees & expenses (nonbankruptcy) Aggregate Total
Itemized Breakdown by Firm
Firm Name
Role
i
ii
iii
iv
v
vi
vii
viii
ix
x
xi
xii
xiii
xiv
Case 22-10951-CTG Doc 292 Filed 11/28/22 Page 5 of 22
UST Form 11-MOR (12/01/2021)
6
Debtor's Name Kabbage, Inc. d/b/a KServicing
Case No. 22-10951
xv
xvi
xvii
xviii
xix
xx
xxi
xxii
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xlix
l
li
lii
liii
liv
lv
lvi
Case 22-10951-CTG Doc 292 Filed 11/28/22 Page 6 of 22
UST Form 11-MOR (12/01/2021)
7
Debtor's Name Kabbage, Inc. d/b/a KServicing
Case No. 22-10951
lvii
lviii
lix
lx
lxi
lxii
lxiii
lxiv
lxv
lxvi
lxvii
lxviii
lxix
lxx
lxxi
lxxii
lxxiii
lxxiv
lxxv
lxxvi
lxxvii
lxxvii
lxxix
lxxx
lxxxi
lxxxii
lxxxii
lxxxiv
lxxxv
lxxxvi
lxxxvi
lxxxvi
lxxxix
xc
xci
xcii
xciii
xciv
xcv
xcvi
xcvii
xcviii
Case 22-10951-CTG Doc 292 Filed 11/28/22 Page 7 of 22
UST Form 11-MOR (12/01/2021)
8
Debtor's Name Kabbage, Inc. d/b/a KServicing
Case No. 22-10951
xcix
c
c.
All professional fees and expenses (debtor & committees)
$0
$0
$0
$0
Part 6: Postpetition Taxes
Current Month
Cumulative
a.
Postpetition income taxes accrued (local, state, and federal)
$0
$0
b.
Postpetition income taxes paid (local, state, and federal)
$0
$0
c.
Postpetition employer payroll taxes accrued
$0
$0
d.
Postpetition employer payroll taxes paid
$0
$0
e.
Postpetition property taxes paid
$0
$0
f.
Postpetition other taxes accrued (local, state, and federal)
$0
$0
g.
Postpetition other taxes paid (local, state, and federal)
$0
$0
Part 7: Questionnaire - During this reporting period:
a.
Were any payments made on prepetition debt? (if yes, see Instructions)
Yes
No
b.
Yes
No
Were any payments made outside the ordinary course of business
without court approval? (if yes, see Instructions)
c.
Yes
No
Were any payments made to or on behalf of insiders?
d.
Yes
No
Are you current on postpetition tax return filings?
e.
Yes
No
Are you current on postpetition estimated tax payments?
f.
Were all trust fund taxes remitted on a current basis?
Yes
No
g.
Yes
No
Was there any postpetition borrowing, other than trade credit?
(if yes, see Instructions)
h.
Were all payments made to or on behalf of professionals approved by
the court?
Yes
No
N/A
i.
Do you have:
Worker's compensation insurance?
Yes
No
If yes, are your premiums current?
Yes
No
N/A
(if no, see Instructions)
Casualty/property insurance?
Yes
No
If yes, are your premiums current?
Yes
No
N/A
(if no, see Instructions)
General liability insurance?
Yes
No
If yes, are your premiums current?
Yes
No
N/A
(if no, see Instructions)
j.
Has a plan of reorganization been filed with the court?
Yes
No
k.
Has a disclosure statement been filed with the court?
Yes
No
l.
Are you current with quarterly U.S. Trustee fees as
set forth under 28 U.S.C. § 1930?
Yes
No
Case 22-10951-CTG Doc 292 Filed 11/28/22 Page 8 of 22
UST Form 11-MOR (12/01/2021)
9
Debtor's Name Kabbage, Inc. d/b/a KServicing
Case No. 22-10951
Part 8: Individual Chapter 11 Debtors (Only)
a.
Gross income (receipts) from salary and wages
$0
b.
Gross income (receipts) from self-employment
$0
c.
Gross income from all other sources
$0
d.
Total income in the reporting period (a+b+c)
$0
e.
Payroll deductions
$0
f.
Self-employment related expenses
$0
g.
Living expenses
$0
h.
All other expenses
$0
i.
Total expenses in the reporting period (e+f+g+h)
$0
j.
Difference between total income and total expenses (d-i)
$0
k.
List the total amount of all postpetition debts that are past due
$0
l.
Are you required to pay any Domestic Support Obligations as defined by 11
U.S.C § 101(14A)?
Yes
No
m.
Yes
No
N/A
If yes, have you made all Domestic Support Obligation payments?
Privacy Act Statement
28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C.
§§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28
U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor's progress
through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is
being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information
is needed to perform the trustee's or examiner's duties or to the appropriate federal, state, local, regulatory, tribal, or foreign
law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be
made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the
Executive Office for United States Trustee's systems of records notice, UST-001, "Bankruptcy Case Files and Associated
Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http://
www.justice.gov/ust/eo/rules_regulations/index.htm. Failure to provide this information could result in the dismissal or
conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F).
I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting
documentation are true and correct and that I have been authorized to sign this report on behalf of the
estate.
/s/ Marc Sullivan
Signature of Responsible Party
Interim CFO
Printed Name of Responsible Party
11/28/2022
Date
Title
Marc Sullivan
Case 22-10951-CTG Doc 292 Filed 11/28/22 Page 9 of 22
UST Form 11-MOR (12/01/2021)
10
Debtor's Name Kabbage, Inc. d/b/a KServicing
Case No. 22-10951
PageOnePartOne
PageOnePartTwo
PageTwoPartOne
PageTwoPartTwo
Case 22-10951-CTG Doc 292 Filed 11/28/22 Page 10 of 22
UST Form 11-MOR (12/01/2021)
11
Debtor's Name Kabbage, Inc. d/b/a KServicing
Case No. 22-10951
Bankruptcy51to100
NonBankruptcy1to50
NonBankruptcy51to100
Bankruptcy1to50
Case 22-10951-CTG Doc 292 Filed 11/28/22 Page 11 of 22
UST Form 11-MOR (12/01/2021)
12
Debtor's Name Kabbage, Inc. d/b/a KServicing
Case No. 22-10951
PageFour
PageThree
Case 22-10951-CTG Doc 292 Filed 11/28/22 Page 12 of 22
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
---------------------------------------------------------------
)
In re
)
Chapter 11
)
KABBAGE, INC. d/b/a KSERVICING, et al.,
)
Case No. 22-10951 (CTG)
)
Debtors.1
)
(Jointly Administered)
)
---------------------------------------------------------------
GLOBAL NOTES AND STATEMENTS OF LIMITATIONS,
METHODOLOGY, AND DISCLAIMERS REGARDING
MONTHLY OPERATING REPORT FOR THE PERIOD
FROM OCTOBER 4, 2022 THROUGH OCTOBER 31, 2022
The debtors and debtors in possession (the “Debtors”) in the above-captioned jointly
administered chapter 11 cases (the “Chapter 11 Cases”) have prepared and filed the attached
Monthly Operating Report for the period including October 4, 2022 through October 31, 2022 (the
“MOR”) in the United States Bankruptcy Court for the District of Delaware (the “Court”). The
Debtors have prepared the MOR with the assistance of their advisors and professionals solely for
the purpose of complying with the reporting requirements applicable in the Chapter 11 Cases. The
financial and supplemental information contained herein is unaudited, limited in scope, and is not
prepared in accordance with accounting principles generally accepted in the United States of
America (“U.S. GAAP”) nor in accordance with federal or state securities laws or other applicable
non-bankruptcy law or in lieu of complying with any periodic reporting requirements thereunder,
nor is it intended to fully reconcile to the consolidated financial statements prepared by the
Debtors.
1
The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal tax
identification number, as applicable are: Kabbage, Inc. d/b/a KServicing (3937); Kabbage Canada Holdings,
LLC (N/A); Kabbage Asset Securitization LLC (1377); Kabbage Asset Funding 2017-A LLC (4803);
Kabbage Asset Funding 2019-A LLC (8973); and Kabbage Diameter, LLC (N/A). Kabbage is a trademark
of American Express used under license; Kabbage, Inc. d/b/a KServicing is not affiliated with American
Express. The Debtors’ mailing and service address is 925B Peachtree Street NE, Suite 383, Atlanta, GA
30309.
Case 22-10951-CTG Doc 292 Filed 11/28/22 Page 13 of 22
In preparing the MOR, the Debtors relied on financial data available from the books and
records available to them at the time of such preparation, but the MOR and financial data do not
reflect in all circumstances presentation for U.S. GAAP. Although the Debtors made commercially
reasonable efforts to ensure the accuracy and completeness of the MOR, inadvertent errors or
omissions may exist. For the avoidance of doubt, the Debtors hereby reserve all rights to amend
and supplement the MOR in all respects, as may be necessary or appropriate. Nothing contained
in this MOR shall constitute a waiver of any of the Debtors’ rights or an admission with respect to
their Chapter 11 Cases. The results of operations contained herein are not necessarily indicative
of results which may be expected from any other period or for the full year and may not necessarily
reflect the results of operations, financial position and cash flows of the Debtors in the future.
Each signatory to the MOR has necessarily relied upon the efforts, statements, advice, and
representations of personnel of the Debtors and their advisors and professionals. Each signatory
has not (and could not have) personally verified the accuracy of each such statement,
representation, or answer contained in the MOR.
MOR Form
The Debtors have noted in the MOR that Kabbage, Inc. d/b/a/ KServicing (“KServicing”)
maintains a workforce of twenty (20) employees (19 full-time employees and 1 part-time
employee) as of the Petition Date and also as of the date hereof. While KServicing’s payroll
provider has listed Kabbage Asset Funding 2017-A LLC as the employer of record, the twenty
(20) employees noted on the MOR are compensated by KServicing and their related work
functions are performed for on behalf of KServicing.
Attachment MOR-1
Cash is received and disbursed by the Debtors as described in the Motion of Debtors for
Entry of Interim and Final Orders (I) Authorizing Debtors to (A) Continue Using Existing Cash
Management System, Bank Accounts, and Business Forms, (B) Implement Changes to Cash
Management in the Ordinary Course of Business; and (II) Granting Related Relief [Docket No.
12] (the “Cash Management Motion”), which was granted on an interim basis pursuant to an
order entered by the Court on October 6, 2022 [Docket No. 78], subsequently granted on a second
Case 22-10951-CTG Doc 292 Filed 11/28/22 Page 14 of 22
interim basis pursuant to an order entered by the Court on November 2, 2022 [Docket No. 195],
and further granted on a third interim basis pursuant to an order entered by the Court on [November
18, 2022] [Docket No. 262] and is consistent with the Debtors’ historical cash management
practices, except as described therein.
Reported cash receipts and disbursements are based on bank activity excluding any
transfers of funds among KServicing’s Bank Accounts, as defined in the Cash Management
Motion.
Attachments MOR-2 and MOR-3
The financial information contained herein is unaudited, limited in scope, covers a limited
time period, and has been prepared solely for the purpose of complying with the monthly reporting
requirements for chapter 11 debtors as required by the Chapter 11 Cases.
The MOR-2 includes the balance sheet as of October 31, 2022 (the “Balance Sheet”). The
MOR-3 Statement of Operations includes activity for entire the calendar month of October, noting
that October 3, 2022, was the petition date (the “Petition Date”). As previously noted, the MOR
was not prepared in accordance with U.S. GAAP and does not include all the information and
disclosures required by U.S. GAAP. Therefore, there can be no assurance that the financial
information presented in the MOR is complete (although the Debtors have made commercially
reasonable efforts to ensure the completeness of the MOR).
Liabilities Subject to Compromise (“LSTC”): LSTC represent the Debtors’ estimate of
prepetition claims. The estimate excludes any unliquidated claims related to current investigations
and/or pending litigations. The determination of how liabilities will ultimately be settled or treated
will not be made until the Bankruptcy Court approves a chapter 11 plan.
Part 1: Cash Receipts and Disbursements
The MOR presents the Debtors’ receipts and disbursements for the period from the Petition
Date through October 31, 2022.
Case 22-10951-CTG Doc 292 Filed 11/28/22 Page 15 of 22
Part 2: Asset and Liability Status
The amounts identified in Part 2 of the MOR are derived from the Debtors’ unaudited and
estimated Balance Sheets as of October 31, 2022. Please refer to the notes above for information
about presentation and limitations that may exist in the MOR.
Part 3: Assets Sold or Transferred
No such transactions or activities occurred during the period of the Petition Date through
October 31, 2022.
Part 4: Income Statement (Statement of Operations)
This MOR presents the Debtors’ best estimates of their Statements of Operations for the
entire calendar month of October. Please refer to the notes above for information about
presentation and limitations that may exist in the MOR.
Part 5: Professional Fees and Expenses
The Debtors did not make any payments to any restructuring professionals during this
reporting period.
Part 6: Postpetition Taxes
In the ordinary course of business, the Debtors are obligated to pay certain taxes and
governmental fees, which generally fall into the following categories: (i) franchise taxes, (ii)
personal property taxes, (iii) income taxes, and (iv) other business licenses and permits
(collectively, the “Taxes and Fees”). On October 21, 2022, the Court entered a final order [Docket
No. 133] authorizing, but not directing, the Debtors to, among other things, pay Taxes and Fees
that arise or accrue in the ordinary course of business on a postpetition basis consistent with
prepetition practices. The Debtors believe that they are current with respect to any post-petition
Taxes and Fees that have come due.
Case 22-10951-CTG Doc 292 Filed 11/28/22 Page 16 of 22
MOR-1
In re: KABBAGE, INC. d/b/a KSERVICING, et al.
Lead Case No: 22-10951
Statement of Cash Receipts and Disbursements - (Unaudited)
Reporting Period: Oct 4 - Oct 31, 2022
USD Actuals
Kabbage Inc.
Kabbage Canada
Holdings, LLC
Kabbage Asset
Securitization, LLC
Kabbage Assets Funding
2017-A LLC
Kabbage Assets Funding
2019-A LLC
Kabbage Diameter, LLC
10/4/22 to 10/31/22
10/4/22 to 10/31/22
10/4/22 to 10/31/22
10/4/22 to 10/31/22
10/4/22 to 10/31/22
10/4/22 to 10/31/22
Receipts
6,952,061
–
–
–
–
–
Disbursements
Payments on Secured Debt
23,124,425
–
–
–
–
–
Borrower Refunds/Returns
1,516,534
–
–
–
–
–
Payroll & Benefits
305,145
–
–
–
–
–
Contract Workforce
276,960
–
–
–
–
–
Restructuring Items
27,887
–
–
–
–
–
Taxes
25,400
–
–
–
–
–
Other
16,467
–
–
–
–
–
Total Disbursements
25,292,819
–
–
–
–
–
Net Cash Flow
(18,340,758)
–
–
–
–
–
Beginning Bank Cash
37,457,286
–
–
–
–
–
Net Cash Flow
(18,340,758)
Ending Bank Cash
19,116,529
–
–
–
–
–
Case 22-10951-CTG Doc 292 Filed 11/28/22 Page 17 of 22
MOR-2
In re: KABBAGE, INC. d/b/a KSERVICING, et al.
Lead Case No: 22-10951
Balance Sheet as of October 31, 2022 - (Unaudited)
Reporting Period: Oct 4 - Oct 31, 2022
Kabbage Inc.
Kabbage
Canada
Holdings, LLC
Kabbage Asset
Securitization,
LLC
Kabbage
Assets Funding
2017-A LLC
Kabbage Assets
Funding 2019-A
LLC
Kabbage
Diameter,
LLC
Assets
Current Assets
Cash and Cash Equivalents1
18,444,000
$
-
$
-
$
-
$
-
$
-
$
Restricted Cash
2,088,364
-
-
-
-
-
Loans Outstanding
SMB Loans
14,906,369
-
-
-
-
-
PPP Loans
533,745,154
-
-
-
-
-
Other Trade Receivables
26,308,207
-
-
-
-
-
Reserve for Uncollectible Receivables
(10,442,877)
-
-
-
-
-
Net Loans and Receivables
564,516,853
-
-
-
-
-
Other Assets
960,640
-
-
-
-
-
Total Assets
586,009,857
$
-
$
-
$
-
$
-
$
-
$
Liabilities
Deferred Revenue
10,070,531
-
-
-
-
-
Accounts Payable & Accrued Expenses
5,672,138
-
-
-
-
-
Payable to Bank Partners
4,625,979
-
-
-
-
-
Total Liabilities
20,368,649
-
-
-
-
-
Liabilities subject to compromise (LSTC)
529,497,514
-
-
-
-
-
Equity
36,143,694
-
-
-
-
-
Total Liabilities and Equity
586,009,857
$
-
$
-
$
-
$
-
$
-
$
Notes
1. Variance between Cash Balance on the Balance Sheet and the Bank Cash Balance per MOR Part 1 is due to timing necessary to process activity by the Company and/or the Bank.
Case 22-10951-CTG Doc 292 Filed 11/28/22 Page 18 of 22
MOR-3
In re: KABBAGE, INC. d/b/a KSERVICING, et al.
Lead Case No: 22-10951
Statement of Operations for the month of October 2022 - (Unaudited)
Reporting Period: Oct 4 - Oct 31, 2022
Kabbage Inc.
Kabbage
Canada
Holdings, LLC
Kabbage Asset
Securitization,
LLC
Kabbage Asset
Funding 2017-
A LLC
Kabbage Asset
Funding 2019-
A LLC
Kabbage
Diameter, LLC
Revenue
Revenue - Lending
14,431
$
-
$
-
$
-
$
-
$
-
$
Revenue - PPP
1,988,277
-
-
-
-
-
Total Revenue
2,002,708
-
-
-
-
-
Expenses
Payroll and Staffing
896,781
-
-
-
-
-
Legal Fees and Settlement
688,459
-
-
-
-
-
Consulting and other Professional
1,333,151
-
-
-
-
-
Software/Platform
318,877
-
-
-
-
-
Marketing/PR
18,607
-
-
-
-
-
Bad Debt Expense (Recovery)
(23,633,637)
-
-
-
-
-
Other operating expenses
186,317
-
-
-
-
-
Interest and Financing
161,463
-
-
-
-
-
Reorganization Items
3,352,887
Total Expenses
(16,677,095)
-
-
-
-
-
Income Tax Expense
25,400
-
-
-
-
-
Other Income (Expense)
(4,972,628)
-
-
-
-
-
Net Income (Loss)
13,681,775
$
-
$
-
$
-
$
-
$
-
$
Case 22-10951-CTG Doc 292 Filed 11/28/22 Page 19 of 22
In re: KABBAGE, INC. d/b/a KSERVICING, et al.
Lead Case No: 22-10951
Schedule of Pre-Petition Payments
Reporting Period: Oct 4 - Oct 31, 2022
_
_
_
_
_
_
_
_
_
_
_
_
_
_
The Debtors hereby submit this attestation regarding prepetition payments during the period of October 4 through October 31, 2022.
/s/ Marc Sullivan
11/28/2022
Signature of Authorized Individual
Date
Marc Sullivan
Interim CFO
Printed Name of Authorized Individual
Title of Authorized Individual
All payments made by the Debtors during the period of October 4 through october 31, 2022 (and included in the disbursements reported herein), were
authorized under First Day Orders granted by the Court.
Case 22-10951-CTG Doc 292 Filed 11/28/22 Page 20 of 22
In re: KABBAGE, INC. d/b/a KSERVICING, et al.
Lead Case No: 22-10951
Schedule of Payments to Insiders
Reporting Period: Oct 4 - Oct 31, 2022
_
_
_
_
_
_
_
_
_
_
_
_
_
_
The Debtors hereby submit this attestation regarding payments to insiders during the period of October 4 through October 31, 2022.
With respect to insiders, all cash payments made were on account of ordinary course salaries and authorized travel and expense reimbursements.
/s/ Marc Sullivan
11/28/2022
Signature of Authorized Individual
Date
Marc Sullivan
Interim CFO
Printed Name of Authorized Individual
Title of Authorized Individual
Case 22-10951-CTG Doc 292 Filed 11/28/22 Page 21 of 22
In re: KABBAGE, INC. d/b/a KSERVICING, et al.
Lead Case No: 22-10951
All bank statements and bank reconciliations for the reporting period
Reporting Period: Oct 4 - Oct 31, 2022
_
_
_
_
_
_
_
_
_
_
_
_
_
_
/s/ Marc Sullivan
11/28/2022
Signature of Authorized Individual
Date
Marc Sullivan
Interim CFO
Printed Name of Authorized Individual
Title of Authorized Individual
The Debtors’ standard practice is to ensure that bank reconciliations are completed as part of the month end close each reporting period. I attest that
each of the Debtors’ bank accounts has been reconciled in accordance with their standard practices.
The Debtors hereby submit this attestation regarding bank account reconciliations in lieu of providing copies of bank statements, bank reconciliations,
and journal entries.
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