ex10_16.htm


    
      

    

    Exhibit
10.5

     

    
      	
              In
      re

            	
              CHARYS
      HOLDING COMPANY, INC

            	
              Case
      No.

            	 	
              08-10289
      (BLS)

            
	 
      	Debtor	
              Reporting
      Period:

            	 	
              July
      1 through 31

            


    

    
      


    

    
      STATEMENT OF OPERATIONS
(Income Statement)

    

    
      


    

    
      The
Statement of Operations is to be prepared on an accrual basis. The accrual basis
of accounting recognizes revenue when it is realized and expenses when they are
incurred, regardless of when cash is actually received or
paid.

    

    
      


    

    
      	
              
                REVENUES

              

            	 	
              
                MONTH

              

            	 	 	
              
                CUMULATIVE
      -FILING TO DATE

              

            	 
	
              
                Gross
      Revenues

              

            	 	 	 	 	 	 
	
              
                Less:
      Returns and Allowances

              

            	 	 	 	 	 	 
	
              
                Management
      Fees billable to Subsidiaries

              

            	 	 	1,3000,000	 	 	 	14,470,579	 
	
              
                COST
      OF GOODS SOLD

              

            	 	 	 	 	 	 	 	 
	
              
                Beginning
      Inentory

              

            	 	 	 	 	 	 	 	 
	
              
                Add:
      Purchases

              

            	 	 	 	 	 	 	 	 
	
              
                Add:
      Cost of Labor

              

            	 	 	 	 	 	 	 	 
	
              
                Add:
      Other Costs (attach
      schedule)

              

            	 	 	 	 	 	 	 	 
	
              
                Less:
      Ending Inventory

              

            	 	 	 	 	 	 	 	 
	
              
                Cost
      of Goods Sold

              

            	 	 	 	 	 	 	 	 
	
              
                Gross
      Profit

              

            	 	 	1,300,000	 	 	 	14,470,579	 
	
              
                OPERATING
      EXPENSES

              

            	 	 	 	 	 	 	 	 
	
              
                Advertising

              

            	 	 	 	 	 	 	 	 
	
              
                Auto
      and Truck Expense

              

            	 	 	-	 	 	 	-	 
	
              
                Bad
      Debts

              

            	 	 	 	 	 	 	 	 
	
              
                Contributions

              

            	 	 	 	 	 	 	 	 
	
              
                Employee
      Benefits Programs

              

            	 	 	3,864	 	 	 	20,888	 
	
              
                Officer/Insider
      Compensation*

              

            	 	 	88,916	 	 	 	557,800	 
	
              
                Insurance

              

            	 	 	8,487	 	 	 	46,003	 
	
              
                Management
      Fees/Bonuses

              

            	 	 	 	 	 	 	 	 
	
              
                Office
      Expense

              

            	 	 	-	 	 	 	-	 
	
              
                Outside
      and other services - no reorganization

              

            	 	 	-	 	 	 	228,982	 
	
              
                Repairs
      and Maintenance

              

            	 	 	 	 	 	 	 	 
	
              
                Rent
      and Lease Expense

              

            	 	 	13,565	 	 	 	91,518	 
	
              
                Salaries/Commissions/Fees

              

            	 	 	30,418	 	 	 	207,254	 
	
              
                Supplies

              

            	 	 	-	 	 	 	21,226	 
	
              
                Taxes
      - Payroll

              

            	 	 	3,058	 	 	 	31,466	 
	
              
                Taxes
      - Real Estate

              

            	 	 	 	 	 	 	 	 
	
              
                Taxes
      - Other

              

            	 	 	4,906	 	 	 	4,878	 
	
              
                Travel
      and Entertainment

              

            	 	 	16,732	 	 	 	81,210	 
	
              
                Utilities

              

            	 	 	4,366	 	 	 	25,977	 
	
              
                Other
      (attach
      schedule)

              

            	 	 	51,024	 	 	 	287,258	 
	
              
                Total
      Operating Expenses Before Depreciation

              

            	 	 	225,336	 	 	 	1,604,460	 
	
              
                Depreciation/Depletion/Amortization

              

            	 	 	2,823	 	 	 	15,845	 
	
              
                Net
      Profit (Loss) Before Other Income & Exp

              

            	 	 	1,071,841	 	 	 	12,850,274	 
	
              
                OTHER
      INCOME AND EXPENSES

              

            	 	 	 	 	 	 	 	 
	
              
                Other
      Income(Loss) -
      Subsidiaries

              

            	 	 	3,329,465	 	 	 	1,808,272	 
	
              
                Interest
      Expense

              

            	 	 	(69,869	)	 	 	(436,108	)
	
              
                Other
      Expense (attach
      schedule)

              

            	 	 	 	 	 	 	 	 
	
              
                Net
      Profit (Loss) Before Reorganization Items

              

            	 	 	4,331,437	 	 	 	14,222,438	 


    

    
      

        
          
             


          

          
             


            
              

            

          

          
             


          

        

      

       

    

    
      	
              In
      re

            	
              CHARYS
      HOLDING COMPANY, INC

            	
              Case
      No.

            	 	
              08-10289
      (BLS)

            
	 
      	Debtor	
              Reporting
      Period:

            	 	
              July
      1 through 31

            


    

    
      


    

    
      	
              
                REORGANIZATION
      ITEMS

              

            	 	 	 	 	 	 
	
              
                Professional
      Fees

              

            	 	 	874,342	 	 	 	4,665,610	 
	
              
                U.
      S. Trustee Quarterly Fees

              

            	 	 	4,875	 	 	 	9,750	 
	
              
                Interest
      Earned on Accumulated Cash from Chapter 11 (see continuation
      sheet)

              

            	 	 	 	 	 	 	 	 
	
              
                Gain
      (Loss) from Sale of Equipment

              

            	 	 	 	 	 	 	 	 
	
              
                Other
      Reorganization Expenses (attach
      schedule)

              

            	 	 	 	 	 	 	 	 
	
              
                Total
      Reorganization Expenses

              

            	 	 	 	 	 	 	 	 
	
              
                Income
      Taxes

              

            	 	 	 	 	 	 	 	 
	
              
                Net
      Profit (Loss)

              

            	 	$	3,452,220	 	 	$	9,547,078	 


    

    
      *"Insider"
is defined in 11 U.S.C. Section 101(31).

    

    
      


    

    
      BREAKDOWN
OF "OTHER" CATEGORY

    

    
      


    

    
      OTHER
COSTS

    

    
      
        	 
      	 	
                
                  None

                

              	 	 	
                
                  None

                

              	 
	 
      	 	 	 	 	 	 
	
                
                  OTHER
      OPERATIONAL EXPENSES

                

              	 
	
                
                  Outside
      services, consulting

                

              	 	 	47,390	 	 	 	279,211	 
	
                
                  Filing
      fees and other misc expenses

                

              	 	 	3,634	 	 	 	8,047	 
	
                
                  OTHER
      INCOME

                

              	 
	 
      	 	
                
                  None

                

              	 	 	
                
                  None

                

              	 
	 
      	 	 	 	 	 	 	 	 
	
                
                  OTHER
      EXPENSES

                

              	 
	 
      	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 
	
                
                  OTHER
      REORGANIZATION EXPENSES

                

              	 
	
                
                  See
      MOR-6 "Bankruptcy Professionals"

                

              	 	 	874,342	 	 	 	4,665,610	 
	 
      	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 


      

    

    
      


    

    
      Reorganization
Items - Interest Earned on Accumulated Cash from Chapter 11: 

      Interest
earned on cash accumulated during the chapter 11 case, which would not have been
earned but for the bankruptcy proceeding, should be reported as a reorganization
item.