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Monthly Operating Report Chapter 11

Date
2021-12-01

Summary

Doc 716, filed March 21, 2023, is a Chapter 11 Monthly Operating Report on UST Form 11-MOR for debtor Kabbage Diameter, LLC, Case No. 22-10956, jointly administered under Lead Case No. 22-10951 in the U.S. Bankruptcy Court for the District of Delaware. It covers the reporting period ended February 28, 2023 and reports no receipts, disbursements, assets, liabilities or income for this debtor. Attached global notes for In re Kabbage, Inc. d/b/a KServicing, et al. state the report is unaudited and not prepared under U.S. GAAP, and that KServicing had nineteen employees as of February 28, 2023. A note states total cash on hand of $33.8 million, of which $21.3 million is unencumbered. The MOR-3 statement of operations for February 2023 lists total revenue of 839,363 and a net loss of $ (4,246,360) for Kabbage, Inc. The report is 20 pages and is signed by the corporate controller.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

                          Case 22-10951-CTG               Doc 716         Filed 03/21/23          Page 1 of 20



                                       UNITED STATES BANKRUPTCY COURT
                                                              DISTRICT OF DELAWARE



In Re. Kabbage Diameter, LLC                                        §                   Case No. 22-10956
                                                                    §
                                                                    §                   Lead Case No. 22-10951
                      Debtor(s)                                     §
                                                                                            Jointly Administered

Monthly Operating Report                                                                                                  Chapter 11

Reporting Period Ended: 02/28/2023                                                        Petition Date: 10/03/2022

Months Pending: 5                                                                         Industry Classification:    5   2   2   3

Reporting Method:                              Accrual Basis                         Cash Basis

Debtor's Full-Time Employees (current):                                          0

Debtor's Full-Time Employees (as of date of order for relief):                   0



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




/s/ Zachary I. Shapiro                                                       Richards, Layton & Finger, P.A.
Signature of Responsible Party                                               Printed Name of Responsible Party
03/21/2023                                                                   One Rodney Square
Date                                                                         920 North Street
                                                                             Wilmington, DE 19801
                                                                             Address



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.

UST Form 11-MOR (12/01/2021)                                        1
                              Case 22-10951-CTG              Doc 716         Filed 03/21/23   Page 2 of 20
Debtor's Name Kabbage Diameter, LLC                                                                   Case No. 22-10956


Part 1: Cash Receipts and Disbursements                                                Current Month           Cumulative

a.   Cash balance beginning of month                                                                     $0
b.   Total receipts (net of transfers between accounts)                                                  $0                 $0
c.   Total disbursements (net of transfers between accounts)                                             $0                 $0
d.   Cash balance end of month (a+b-c)                                                                   $0
e.   Disbursements made by third party for the benefit of the estate                                     $0                 $0
f.   Total disbursements for quarterly fee calculation (c+e)                                             $0                 $0
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       ( Book        Market      Other      (attach explanation))                          $0
d    Total current assets                                                                                $0
e.   Total assets                                                                                        $0
f.   Postpetition payables (excluding taxes)                                                             $0
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)                                                                       $0
k.   Prepetition secured debt                                                                            $0
l.   Prepetition priority debt                                                                           $0
m. Prepetition unsecured debt                                                                            $0
n.   Total liabilities (debt) (j+k+l+m)                                                                  $0
o.   Ending equity/net worth (e-n)                                                                       $0

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)                                                    $0
b.   Cost of goods sold (inclusive of depreciation, if applicable)                                       $0
c.   Gross profit (a-b)                                                                                  $0
d.   Selling expenses                                                                                    $0
e.   General and administrative expenses                                                                 $0
f.   Other expenses                                                                                      $0
g.   Depreciation and/or amortization (not included in 4b)                                               $0
h.   Interest                                                                                            $0
i.   Taxes (local, state, and federal)                                                                   $0
j.   Reorganization items                                                                                $0
k.   Profit (loss)                                                                                       $0                 $0


UST Form 11-MOR (12/01/2021)                                           2
                          Case 22-10951-CTG                    Doc 716          Filed 03/21/23      Page 3 of 20
Debtor's Name Kabbage Diameter, LLC                                                                          Case No. 22-10956

Part 5: Professional Fees and Expenses

                                                                                  Approved       Approved       Paid Current       Paid
                                                                                Current Month   Cumulative         Month         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
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       xv
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       xix
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       xxi
       xxii
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       xxiv
       xxv
       xxvi
       xxvii
       xxviii
       xxix
       xxx
       xxxi
       xxxii
       xxxiii
       xxxiv
       xxxv
       xxxvi


UST Form 11-MOR (12/01/2021)                                                3
                      Case 22-10951-CTG   Doc 716   Filed 03/21/23   Page 4 of 20
Debtor's Name Kabbage Diameter, LLC                                      Case No. 22-10956


       xxxvii
       xxxvii
       xxxix
       xl
       xli
       xlii
       xliii
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       xlv
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       l
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       lxix
       lxx
       lxxi
       lxxii
       lxxiii
       lxxiv
       lxxv
       lxxvi
       lxxvii
       lxxvii

UST Form 11-MOR (12/01/2021)                   4
                          Case 22-10951-CTG                   Doc 716          Filed 03/21/23      Page 5 of 20
Debtor's Name Kabbage Diameter, LLC                                                                         Case No. 22-10956


       lxxix
       lxxx
       lxxxi
       lxxxii
       lxxxii
       lxxxiv
       lxxxv
       lxxxvi
       lxxxvi
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       lxxxix
       xc
       xci
       xcii
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       xcv
       xcvi
       xcvii
       xcviii
       xcix
       c
       ci

                                                                                 Approved       Approved       Paid Current       Paid
                                                                               Current Month   Cumulative         Month         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


UST Form 11-MOR (12/01/2021)                                             5
                      Case 22-10951-CTG   Doc 716   Filed 03/21/23   Page 6 of 20
Debtor's Name Kabbage Diameter, LLC                                      Case No. 22-10956


       xv
       xvi
       xvii
       xviii
       xix
       xx
       xxi
       xxii
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       xlix
       l
       li
       lii
       liii
       liv
       lv
       lvi

UST Form 11-MOR (12/01/2021)                   6
                      Case 22-10951-CTG   Doc 716   Filed 03/21/23   Page 7 of 20
Debtor's Name Kabbage Diameter, LLC                                      Case No. 22-10956


       lvii
       lviii
       lix
       lx
       lxi
       lxii
       lxiii
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       lxv
       lxvi
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       lxxxvi
       lxxxix
       xc
       xci
       xcii
       xciii
       xciv
       xcv
       xcvi
       xcvii
       xcviii

UST Form 11-MOR (12/01/2021)                   7
                           Case 22-10951-CTG                     Doc 716   Filed 03/21/23     Page 8 of 20
Debtor's Name Kabbage Diameter, LLC                                                                Case No. 22-10956


         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.   Were any payments made outside the ordinary course of business                Yes        No
     without court approval? (if yes, see Instructions)
c.   Were any payments made to or on behalf of insiders?                           Yes        No
d.   Are you current on postpetition tax return filings?                           Yes        No
e.   Are you current on postpetition estimated tax payments?                       Yes        No
f.   Were all trust fund taxes remitted on a current basis?                        Yes        No
g.   Was there any postpetition borrowing, other than trade credit?                Yes        No
     (if yes, see Instructions)
h.   Were all payments made to or on behalf of professionals approved by           Yes        No    N/A
     the court?
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                           Yes        No
     set forth under 28 U.S.C. § 1930?




UST Form 11-MOR (12/01/2021)                                          8
                                 Case 22-10951-CTG               Doc 716        Filed 03/21/23           Page 9 of 20
Debtor's Name Kabbage Diameter, LLC                                                                             Case No. 22-10956

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              Yes       No
   U.S.C § 101(14A)?
m. If yes, have you made all Domestic Support Obligation payments?                        Yes       No        N/A

                                                     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                                                               Tamica Williams
Signature of Responsible Party                                                    Printed Name of Responsible Party

Corporate Controller                                                              03/21/2023
Title                                                                             Date




UST Form 11-MOR (12/01/2021)                                                9
                      Case 22-10951-CTG   Doc 716      Filed 03/21/23   Page 10 of 20
Debtor's Name Kabbage Diameter, LLC                                         Case No. 22-10956




                                              PageOnePartOne




                                              PageOnePartTwo




                                              PageTwoPartOne




                                              PageTwoPartTwo




UST Form 11-MOR (12/01/2021)                      10
                      Case 22-10951-CTG   Doc 716        Filed 03/21/23   Page 11 of 20
Debtor's Name Kabbage Diameter, LLC                                           Case No. 22-10956




                                               Bankruptcy1to50




                                              Bankruptcy51to100




                                             NonBankruptcy1to50




                                            NonBankruptcy51to100




UST Form 11-MOR (12/01/2021)                       11
                      Case 22-10951-CTG   Doc 716     Filed 03/21/23   Page 12 of 20
Debtor's Name Kabbage Diameter, LLC                                        Case No. 22-10956




                                               PageThree




                                                PageFour




UST Form 11-MOR (12/01/2021)                     12
               Case 22-10951-CTG              Doc 716       Filed 03/21/23       Page 13 of 20




                             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 FEBRUARY 1, 2023 THROUGH FEBRUARY 28, 2023

         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 February 1, 2023 through February 28, 2023 (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 716      Filed 03/21/23     Page 14 of 20




       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, as of the petition date, October 3, 2022, Kabbage,
Inc. d/b/a/ KServicing (“KServicing”) maintained a workforce of twenty (20) employees (19 full-
time employees and 1 part-time employee), and, as of February 28, 2023, KServicing maintained
a workforce of nineteen (19) employees (18 full-time employees and 1 part-time employee). While
KServicing’s payroll provider has listed Kabbage Asset Funding 2017-A LLC as the employer of
record, the nineteen (19) 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 716      Filed 03/21/23     Page 15 of 20




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 February 1, 2023 through February 28, 2023,
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”).

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 February 28, 2023 (the “Balance Sheet”).
The MOR-3 Statement of Operations includes activity for the calendar month of February. 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 716    Filed 03/21/23   Page 16 of 20




Part 1: Cash Receipts and Disbursements

       The MOR presents the Debtors’ receipts and disbursements for the month of February
2023. 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 February 28, 2023. 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 February 2023.

Part 4: Income Statement (Statement of Operations)

       This MOR presents the Debtors’ best estimates of their Statements of Operations for the
month of February. 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 716     Filed 03/21/23     Page 17 of 20




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 716        Filed 03/21/23               Page 18 of 20


                                                                                                                                                                                                        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: Feb 1 - Feb 28, 2023

                                                                                Kabbage Canada            Kabbage Asset           Kabbage Assets Funding   Kabbage Assets Funding
USD Actuals                                              Kabbage Inc.            Holdings, LLC          Securitization, LLC            2017-A LLC               2019-A LLC           Kabbage Diameter, LLC
                                                       2/1/23 to 2/28/23        2/1/23 to 2/28/23        2/1/23 to 2/28/23           2/1/23 to 2/28/23        2/1/23 to 2/28/23         2/1/23 to 2/28/23

Receipts                                                          5,547,283                         –                         –                       –                        –                            –
 Pass-through - Partner Banks                                    (2,465,564)                        –                         –                       –                        –                            –
 Pass-through - Borrower Refunds/Returns                           (680,657)                        –                         –                       –                        –                            –
 Net Receipts                                                     2,401,062                         –                         –                       –                        –                            –

Disbursements
  Payments on Secured Debt - Federal Reserve                        657,540                         –                         –                       –                        –                            –
  Payroll & Benefits                                                304,924                         –                         –                       –                        –                            –
  Contract Workforce                                              1,050,239                         –                         –                       –                        –                            –
  Restructuring Items                                             2,199,446                         –                         –                       –                        –                            –
  Taxes                                                              40,050                         –                         –                       –                        –                            –
  Other                                                             249,835                         –                         –                       –                        –                            –
Total Disbursements                                               4,502,034                         –                         –                       –                        –                            –

Net Cash Flow                                                    (2,100,972)                        –                         –                       –                        –                            –

 Beginning Bank Cash                                             35,866,581                         –                         –                       –                        –                            –
 Net Cash Flow                                                    (2,100,972)
Ending Bank Cash                                                 33,765,608                         –                         –                       –                        –                            –
                                                     Case 22-10951-CTG                      Doc 716             Filed 03/21/23            Page 19 of 20


                                                                                                                                                                                                    MOR-2
In re: KABBAGE, INC. d/b/a KSERVICING, et al.                                                                                                                           Lead Case No:             22-10951
Balance Sheet as of February 28, 2023 - (Unaudited)                                                                                                                  Reporting Period: Feb 1 - Feb 28, 2023


                                                                                                                                       Kabbage Assets            Kabbage Assets
                                                                                 Kabbage Canada            Kabbage Asset               Funding 2017-A            Funding 2019-A        Kabbage Diameter,
                                                          Kabbage Inc.            Holdings, LLC           Securitization, LLC               LLC                       LLC                    LLC
Assets

Current Assets
                          1
Cash and Cash Equivalents                             $        32,894,902        $                    -     $                   -     $                    -     $                 -    $                -
Restricted Cash                                                 2,088,364                             -                         -                          -                       -                     -

Loans Outstanding
SMB Loans                                                      9,259,015                              -                         -                          -                       -                     -
PPP Loans                                                    416,779,042                              -                         -                          -                       -                     -
Other Trade Receivables                                        4,115,768                              -                         -                          -                       -                     -
Reserve for Uncollectible Receivables                        (11,256,022)                             -                         -                          -                       -                     -
Net Loans and Receivables                                    418,897,803                              -                         -                          -                       -                     -

Other Assets                                                      758,930                             -                         -                          -                       -                     -
Total Assets                                          $      454,639,999         $                    -     $                   -     $                    -     $                 -    $                -
Liabilities
Deferred Revenue                                      $         8,393,154        $                    -     $                   -     $                    -     $                 -    $                -
Accounts Payable & Accrued Expenses                            11,483,742                             -                         -                          -                       -                     -
Payable to Bank Partners                                        4,081,737                             -                         -                          -                       -                     -
Total Liabilities                                              23,958,633                             -                         -                          -                       -                     -

Liabilities subject to compromise (LSTC)                     413,054,414

Equity                                                         17,626,952                             -                         -                          -                       -                     -

Total Liabilities and Equity                          $      454,639,999         $                    -     $                   -     $                    -     $                 -    $                -

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 February 28, 2023, total cash on hand is $33.8 million of which $21.3 million in unencumbered cash. The remaining $12.5 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 716        Filed 03/21/23       Page 20 of 20


                                                                                                                                 MOR-3
In re: KABBAGE, INC. d/b/a KSERVICING, et al.                                                       Lead Case No:              22-10951
Statement of Operations for the month of February 2023 - (Unaudited)                              Reporting Period: Feb 1 - Feb 28, 2023
                                                        Kabbage           Kabbage              Kabbage        Kabbage
                                                         Canada            Asset                 Asset          Asset        Kabbage
                                                        Holdings,       Securitization,        Funding        Funding        Diameter,
                                      Kabbage Inc.        LLC               LLC               2017-A LLC     2019-A LLC         LLC

Revenue
Revenue - Lending                     $      9,291     $          -      $             -      $          -   $          -    $        -
Revenue - PPP                              830,072                -                    -                 -              -             -
Total Revenue                              839,363                -                    -                 -              -             -

Expenses
Payroll and Staffing                        774,408               -                    -                 -              -             -
Legal Fees and Settlement                   111,822               -                    -                 -              -             -
Consulting and other Professional           769,222               -                    -                 -              -             -
Software/Platform                           411,272               -                    -                 -              -             -
Marketing/PR                                 20,400               -                    -                 -              -             -
Bad Debt Expense (Recovery)                 566,266               -                    -                 -              -             -
Other operating expenses                    186,287               -                    -                 -              -             -
Interest and Financing                      (81,368)              -                    -                 -              -             -
Reorganization Items                      2,303,597
Total Expenses                            5,061,906               -                    -                 -              -             -

Income Tax Expense                                -               -                    -                 -              -             -

Other Income (Expense)                      (23,817)              -                    -                 -              -             -

Net Income (Loss)                     $ (4,246,360)    $          -      $             -      $          -   $          -    $        -


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