Court filing

Monthly Operating Report, December 2022 — In re KServicing

Filed January 23, 2023 in Kservicing Bankruptcy; one of 140 filings from this case.

Record facts

Court	U.S. Bankruptcy Court for the District of Delaware
Filed	2023-01-23

U.S. Bankruptcy Court for the District of Delaware · No. 22-10951 · Doc. 478 · 2023-01-23 · 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: 12/31/2022
Petition Date: 10/03/2022
Months Pending: 3
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
01/23/2023
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 478 Filed 01/23/23 Page 1 of 23

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
$41,077,228
b.
Total receipts (net of transfers between accounts)
$2,959,493
$42,120,644
c.
Total disbursements (net of transfers between accounts)
$7,060,422
$42,601,631
d.
Cash balance end of month (a+b-c)
$36,976,299
e.
Disbursements made by third party for the benefit of the estate
$0
$0
f.
Total disbursements for quarterly fee calculation (c+e)
$7,060,422
$42,601,631
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
$39,183,363
e.
Total assets
$497,341,029
f.
Postpetition payables (excluding taxes)
$23,391,379
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)
$23,391,379
k.
Prepetition secured debt
$448,699,331
l.
Prepetition priority debt
$0
m.
Prepetition unsecured debt
$557,214
n.
Total liabilities (debt) (j+k+l+m)
$472,647,924
o.
Ending equity/net worth (e-n)
$24,693,105
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)
$1,638,024
b.
Cost of goods sold (inclusive of depreciation, if applicable)
$0
c.
Gross profit (a-b)
$1,638,024
d.
Selling expenses
$0
e.
General and administrative expenses
$2,613,957
f.
Other expenses
$3,963,124
g.
Depreciation and/or amortization (not included in 4b)
$0
h.
Interest
$-141,156
i.
Taxes (local, state, and federal)
$0
j.
Reorganization items
$2,468,669
k.
Profit (loss)
$-7,266,570
$2,236,064
Case 22-10951-CTG Doc 478 Filed 01/23/23 Page 2 of 23

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
$2,579,033
$2,579,033
$2,579,033
$2,579,033
Itemized Breakdown by Firm
Firm Name
Role
i
AlixPartners LLP
Financial Professional
$590,931
$590,931
$590,931
$590,931
ii
Omni Agent Solutions
Other
$491,982
$491,982
$491,982
$491,982
iii
Richards Layton & Finger, P.A Local Counsel
$277,936
$277,936
$277,936
$277,936
iv
Weil, Gotshal & Manges LLP
Lead Counsel
$1,218,185
$1,218,185
$1,218,185
$1,218,185
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 478 Filed 01/23/23 Page 3 of 23

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
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xlix
l
li
lii
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Case 22-10951-CTG Doc 478 Filed 01/23/23 Page 4 of 23

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
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lxxxvi
lxxxvi
lxxxix
xc
xci
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xcviii
xcix
c
ci

Approved
Current Month
Approved
Cumulative
Paid Current
Month
Paid
Cumulative
b.
Debtor's professional fees & expenses (nonbankruptcy) Aggregate Total
$296,019
$296,019
$296,019
$296,019
Itemized Breakdown by Firm
Firm Name
Role
i
Dentons US LLP
Special Counsel
$61,916
$61,916
$61,916
$61,916
ii
GREENBERG TRAURIG, LLPSpecial Counsel
$68,094
$68,094
$68,094
$68,094
iii
Jones Day
Special Counsel
$166,008
$166,008
$166,008
$166,008
iv
v
vi
vii
viii
ix
x
xi
xii
xiii
xiv
Case 22-10951-CTG Doc 478 Filed 01/23/23 Page 5 of 23

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
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xxviii
xxix
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xxxi
xxxii
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xxxvii
xxxix
xl
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xlii
xliii
xliv
xlv
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li
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liv
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Case 22-10951-CTG Doc 478 Filed 01/23/23 Page 6 of 23

UST Form 11-MOR (12/01/2021)
7
Debtor's Name Kabbage, Inc. d/b/a KServicing
Case No. 22-10951
lvii
lviii
lix
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lxi
lxii
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Case 22-10951-CTG Doc 478 Filed 01/23/23 Page 7 of 23

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)
$2,875,052
$2,875,052
$2,875,052
$2,875,052
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 478 Filed 01/23/23 Page 8 of 23

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/ Tamica Williams
Signature of Responsible Party
Corporate Controller
Printed Name of Responsible Party
01/23/2023
Date
Title
Tamica Williams
Case 22-10951-CTG Doc 478 Filed 01/23/23 Page 9 of 23

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 478 Filed 01/23/23 Page 10 of 23

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 478 Filed 01/23/23 Page 11 of 23

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 478 Filed 01/23/23 Page 12 of 23

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 DECEMBER 1, 2022 THROUGH DECEMBER 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 December 1, 2022 through December 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 478 Filed 01/23/23 Page 13 of 23

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, October 3, 2022, 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 a final basis pursuant to an order
Case 22-10951-CTG Doc 478 Filed 01/23/23 Page 14 of 23

entered by the Court on January 17, 2023 [Docket 445], and is consistent with the Debtors’
historical cash management practices, except as described therein.
Beginning with this MOR for the period December 1, 2022 through December 31, 2022,
borrower payments collected and held for the benefit of Cross River Bank and Customer Bank
(each a “Partner Bank” and together the “Partner Banks”) and remitted to the applicable Partner
Bank or refunded to the applicable borrower or passed onto the U.S. Small Business
Administration (“SBA”) are not included in disbursements in Part 1 of the MOR or MOR-1
because all amounts are held for the benefit of the Partner Banks, the SBA or the borrowers and
such amounts are not part of the Debtors’ estates (collectively, “Pass-Through Payments”). For
the avoidance of doubt, MORs for the October 2022 and November 2022 periods will not be
amended for this adjustment to the disbursement calculations; however, the above adjustment
regarding the disbursement calculation will be reflected in all future MORs.
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 December 31, 2022 (the “Balance Sheet”).
The MOR-3 Statement of Operations includes activity for the calendar month of December. 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.

Case 22-10951-CTG Doc 478 Filed 01/23/23 Page 15 of 23

Part 1: Cash Receipts and Disbursements
The MOR presents the Debtors’ receipts and disbursements for the month of December
2022. Reported cash receipts and disbursements are based on bank activity excluding any transfers
of funds among the Bank Accounts as defined in the Cash Management Motion. Consistent with
the note to MOR-1 above, disbursements in Part 1 exclude Pass-Through Payments.
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 December 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 month of December 2022.
Part 4: Income Statement (Statement of Operations)
This MOR presents the Debtors’ best estimates of their Statements of Operations for the
month of December. 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’ payments to any restructuring and non-restructuring professionals and other
ordinary course professionals are reflected in Part 5.
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
Case 22-10951-CTG Doc 478 Filed 01/23/23 Page 16 of 23

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 478 Filed 01/23/23 Page 17 of 23

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: Dec 1 - Dec 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

12/1/22 to 12/31/22
12/1/22 to 12/31/22
12/1/22 to 12/31/22
12/1/22 to 12/31/22
12/1/22 to 12/31/22
12/1/22 to 12/31/22
Receipts
6,815,284
–
–
–
–
–
Pass-through - Partner Banks
(3,289,146)
–
–
–
–
–
Pass-through - Borrower Refunds/Returns
(566,646)
–
–
–
–
–
Net Receipts
2,959,493
–
–
–
–
–
Disbursements
Payments on Secured Debt - Federal Reserve
878,149
–
–
–
–
–
Payroll & Benefits
366,836
–
–
–
–
–
Contract Workforce
2,216,923
–
–
–
–
–
Restructuring Items
2,813,136
–
–
–
–
–
Taxes
74,154
–
–
–
–
–
Other
711,223
–
–
–
–
–
Total Disbursements
7,060,422
–
–
–
–
–
Net Cash Flow
(4,100,928)
–
–
–
–
–
Beginning Bank Cash
41,077,228
–
–
–
–
–
Net Cash Flow
(4,100,928)
Ending Bank Cash
36,976,299
–
–
–
–
–
Case 22-10951-CTG Doc 478 Filed 01/23/23 Page 18 of 23

MOR-2
In re: KABBAGE, INC. d/b/a KSERVICING, et al.
Lead Case No: 22-10951
Balance Sheet as of December 31, 2022 - (Unaudited)
Reporting Period: Dec 1 - Dec 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
37,094,999
$
-
$
-
$
-
$
-
$
-
$
Restricted Cash
2,088,364

Loans Outstanding
SMB Loans
11,789,826

PPP Loans
451,952,473

Other Trade Receivables
4,890,262

Reserve for Uncollectible Receivables
(11,433,199)

Net Loans and Receivables
457,199,362

Other Assets
958,304

Total Assets
497,341,029
$
-
$
-
$
-
$
-
$
-
$
Liabilities
Deferred Revenue
9,304,506

Accounts Payable & Accrued Expenses
10,068,848

Payable to Bank Partners
4,018,025

Total Liabilities
23,391,379

Liabilities subject to compromise (LSTC)
449,256,546

Equity
24,693,105

Total Liabilities and Equity
497,341,029
$
-
$
-
$
-
$
-
$
-
$
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.
As of December 31, 2022, total cash on hand is $37.1 million of which $24.2 million in unencumbered cash. The remaining $12.9 million is comprised of cash in a professional
fee carve out account and funds that are to be remitted to Federal Reserve, CRB, CUBI and borrowers.
Case 22-10951-CTG Doc 478 Filed 01/23/23 Page 19 of 23

MOR-3
In re: KABBAGE, INC. d/b/a KSERVICING, et al.
Lead Case No: 22-10951
Statement of Operations for the month of December 2022 - (Unaudited)
Reporting Period: Dec 1 - Dec 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
12,567
$
-
$
-
$
-
$
-
$
-
$
Revenue - PPP
1,625,457

Total Revenue
1,638,024

Expenses
Payroll and Staffing
881,233

Legal Fees and Settlement
245,376

Consulting and other Professional
1,087,911

Software/Platform
378,838

Marketing/PR
20,600

Bad Debt Expense (Recovery)
921,125

Other operating expenses
168,668

Interest and Financing
(141,156)

Reorganization Items
2,468,669

Total Expenses
6,031,263

Income Tax Expense
-

Other Income (Expense)
(2,873,331)

Net Income (Loss)
(7,266,570)
$
-
$
-
$
-
$
-
$
-
$
Case 22-10951-CTG Doc 478 Filed 01/23/23 Page 20 of 23

In re: KABBAGE, INC. d/b/a KSERVICING, et al.
Lead Case No: 22-10951
Schedule of Pre-Petition Payments
Reporting Period: Dec 1 - Dec 31, 2022
_
_
_
_
_
_
_
_
_
_
_
_
_
_
The Debtors hereby submit this attestation regarding prepetition payments during the period of December 1 through December 31, 2022.
/s/ Tamica Williams
1/23/2023
Signature of Authorized Individual
Date
Tamica Williams
Corporate Controller
Printed Name of Authorized Individual
Title of Authorized Individual
All payments made by the Debtors during the period of December 1 through December 31, 2022 (and included in the disbursements reported herein),
were authorized under First Day Orders granted by the Court.
Case 22-10951-CTG Doc 478 Filed 01/23/23 Page 21 of 23

In re: KABBAGE, INC. d/b/a KSERVICING, et al.
Lead Case No: 22-10951
Schedule of Payments to Insiders
Reporting Period: Dec 1 - Dec 31, 2022
_
_
_
_
_
_
_
_
_
_
_
_
_
_
The Debtors hereby submit this attestation regarding payments to insiders during the period of December 1 through December 31, 2022.
With respect to insiders, all cash payments made were on account of ordinary course salaries and authorized travel and expense reimbursements.
/s/ Tamica Williams
1/23/2023
Signature of Authorized Individual
Date
Tamica Williams
Corporate Controller
Printed Name of Authorized Individual
Title of Authorized Individual
Case 22-10951-CTG Doc 478 Filed 01/23/23 Page 22 of 23

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: Dec 1 - Dec 31, 2022
_
_
_
_
_
_
_
_
_
_
_
_
_
_
/s/ Tamica Williams
1/23/2023
Signature of Authorized Individual
Date
Tamica Williams
Corporate Controller
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.
Case 22-10951-CTG Doc 478 Filed 01/23/23 Page 23 of 23

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Monthly Operating Report, December 2022 — In re KServicing

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