exh99_1.htm

Exhibit 99.1

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF KANSAS

KANSAS CITY DIVISION

IN RE: )
)	Case No. 11-20140-11-rdb
DIGITAL SYSTEMS, INC. )	Chapter 11
Debtor. )
)

DEBTOR'S STANDARD MONTHLY OPERATING REPORT (BUSINESS)

FOR THE PERIOD

FROM November 1, 2011 TO November 30, 2011

Comes now the above-named debtor and files its Monthly Operating Reports in accordance with the Guidelines established by the United States Trustee and FRBP 2015.

/s/ Joanne B. Stutz

Attorney for Debtor’s Signature

Debtor's Address

and Phone Number:

15621 W. 87th Street, Box 355

Lenexa, KS 66219

Attorney's Address

and Phone Number:

7225 Renner Road, Suite 200

Shawnee, KS 66217

(913) 962-8700; (913) 962-8701 (FAX)

Note: The original Monthly Operating Report is to be filed with the court and a copy simultaneously provided to the United States Trustee Office. Monthly Operating Reports must be filed by the 21st day of the following month.

For assistance in preparing the Monthly Operating Report, refer to the following resources on the United States Trustee Program Website, http://www.justice.gov/ust/r20/index.htm.

1)	Instructions for Preparations of Debtor’s Chapter 11 Monthly Operating Report

2)	Initial Filing Requirements

3)	Frequently Asked Questions (FAQs)http://www.usdoj.gov/ust/

MOR-1

SCHEDULE OF RECEIPTS AND DISBURSEMENTS

FOR THE PERIOD BEGINNING November 1, 2011 and ending November 30, 2011

Name of Debtor: Digital Systems, Inc. Case Number: 11-20140-11-rdb

Date of Petition: January 21, 2011

		Current		Cumulative
		Month		to Petition Date

1. FUNDS AT BEGINNING OF PERIOD		$ 160,608.36	(a)	$24,201.83	(b)
2. RECEIPTS:
	A. Cash Sales			-
	Minus: Cash Refunds			-
	Net Cash Sales			-
	B. Accounts Receivable			202,714.26
	C. Other Receipts (See MOR-3)			763,102.70
	(If you receive rental income,			-
	you must attach a rent roll.)
3. TOTAL RECEIPTS (Lines 2A+2B+2C)				965,816.96
4.	TOTAL FUNDS AVAILABLE FOR OPERATIONS (Line 1 + Line 3)	$ 160,608.36		$ 990,018.79
5. DISBURSEMENTS
	A. Advertising			-
	B. Bank Charges	70.00		1,755.00
	C. Contract Labor	3,000.00		58,034.85
	D. Fixed Asset Payments (not incl. in “N”)			-
	E. Insurance			41,943.00
	F. Inventory Payments (See Attach. 2)			-
	G. Leases			-
	H. Manufacturing Supplies			-
	I. Office Supplies	21.40		1,422.49
	J. Payroll - Net (See Attachment 4B)			167,780.49
	K. Professional Fees (Accounting & Legal)	2,557.32		184,999.62
	L. Rent	750.00		51,875.66
	M. Repairs & Maintenance			-
	N. Secured Creditor Payments (See Attach. 2)			186,977.59
	O. Taxes Paid - Payroll (See Attachment 4C)			83,905.08
	P. Taxes Paid - Sales & Use (See Attachment 4C)			-
	Q. Taxes Paid - Other (See Attachment 4C)			6,630.52
	R. Telephone	91.48		9,037.85
	S. Travel & Entertainment			4,185.62
	Y. U.S. Trustee Quarterly Fees	650.00		5,525.00
	U. Utilities	106.18		6,687.19
	V. Vehicle Expenses			-
	W. Other Operating Expenses (See MOR-3)			25,896.85
6. TOTAL DISBURSEMENTS (Sum of 5A thru W)		7,246.38		836,656.81
7. ENDING BALANCE (Line 4 Minus Line 6)		$ 153,361.98	(c)	$ 153,361.98	(c)

MOR-2

I declare under penalty of perjury that this statement and the accompanying documents and reports are true and correct to the best of my knowledge and belief.

This 20th day of December 2011.

/s/ David C. Owen

By: David C. Owen, Chairman/CEO

(a)This number is carried forward from last month’s report. For the first report only, this number will be the balance as of the petition date.

(b)This figure will not change from month to month. It is always the amount of funds on hand as of the date of the petition.

(c)These two amounts will always be the same if form is completed correctly.

MOR-3

MONTHLY SCHEDULE OF RECEIPTS AND DISBURSEMENTS (cont’d)

Detail of Other Receipts and Other Disbursements

OTHER RECEIPTS:

Describe Each Item of Other Receipt and List Amount of Receipt. Write totals on Page MOR-2, Line 2C.

Description

Current Month

Cumulative

Petition to Date

TOTAL OTHER RECEIPTS

Refunds

$ 0.00

$763,102.70

“Other Receipts” includes Loans from Insiders and other sources (i.e. Officer/Owner, related parties directors, related corporations, etc.). Please describe below:

Loan Amount

Source

of Funds

Purpose

Repayment Schedule

OTHER DISBURSEMENTS:

Describe Each Item of Other Disbursement and List Amount of Disbursement. Write totals on Page MOR-2, Line 5W.

Description

Current Month

Cumulative

Petition to Date

TOTAL OTHER DISBURSEMENTS

NOTE: Attach a current Balance Sheet and Income (Profit & Loss) Statement.

ATTACHMENT 1

MONTHLY ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

Name of Debtor: Digital Systems, Inc. Case Number: 11-20140-11-rdb

Reporting Period beginning November 1, 2011 Period ending November 30, 2011

MOR-4

ACCOUNTS RECEIVABLE AT PETITION DATE:

ACCOUNTS RECEIVABLE RECONCILIATION

(Include all accounts receivable, pre-petition and post-petition, including charge card sales which have not been received):

Beginning of Month Balance	$ 176,140 (a)
PLUS: Current Month New Billings
MINUS: Collection During the Month	$ (b)
PLUS/MINUS: Adjustments or Writeoffs	$ *
End of Month Balance	$ 176,140 (c)

*For any adjustments or Write-offs provide explanation and supporting documentation, if applicable:

Customer receipts paid to FCG offset against interest and penalty fees

Adjustment made to refund overpayment on account.

POST PETITION ACCOUNTS RECEIVABLE AGING

(Show the total for each aging category for all accounts receivable)

0-30 Days

31-60 Days

61-90 Days

Over 90Days

Total

TOTAL		0.00		0.00		(66.96)		(199,292.32)		375,499.08		176,139.80

For any receivables in the “Over 90 Days” category, please provide the following:

Customer	Receivable Date	Status (Collection efforts taken, estimate of collectibility, write-off, disputed account, etc.)

(a)This number is carried forward from last month’s report. For the first report only, this number will be the balance as of the petition date.

(b)This must equal the number reported in the “Current Month” column of Schedule of Receipts and

Disbursements (Page MOR-2, Line 2B).

(c)These two amounts must equal.

MOR-5

ATTACHMENT 2

MONTHLY ACCOUNTS PAYABLE AND SECURED PAYMENTS REPORT

Name of Debtor: Digital Systems, Inc. Case Number: 11-20140-11-rdb

Reporting Period beginning November 1, 2011 Period ending November 30, 2011

In the space below list all invoices or bills incurred and not paid since the filing of the petition. Do not include amounts owed prior to filing the petition. In the alternative, a computer generated list of payables may be attached provided all information requested below is included.

POST-PETITION ACCOUNTS PAYABLE

Date

Incurred

Days

Outstanding

Vendor

Description

Amount

See Attached

TOTAL AMOUNT

(b)

X Check here if pre-petition debts have been paid. Attach an explanation and copies of supporting

documentation.

ACCOUNTS PAYABLE RECONCILIATION (Post Petition Unsecured Debt Only)

Opening Balance	$ 4,941.02 (a)
PLUS: New Indebtedness Incurred This Month	$
MINUS: Amount Paid on Post Petition,
Accounts Payable This Month	$
PLUS/MINUS: Adjustments	$ *
Ending Month Balance	$ 4,941.02 (c)

*For any adjustments provide explanation and supporting documentation, if applicable.

SECURED PAYMENTS REPORT

List the status of Payments to Secured Creditors and Lessors (Post Petition Only). If you have entered into a modification agreement with a secured creditor/lessor, consult with your attorney and the United States Trustee Program prior to completing this section).

			Number	Total
	Date		of Post	Amount of
Secured	Payment	Amount	Petition	Post Petition
Creditor/	Due This	Paid This	Payments	Payments
Lessor	Month	Month	Delinquent	Delinquent




TOTAL		(d)

(a)This number is carried forward from last month’s report. For the first report only, this number will be zero.

(b, c)The total of line (b) must equal line (c).

(d)This number is reported in the “Current Month” column of Schedule of Receipts and Disbursements (Page MOR-2, Line 5N).

MOR-6

ATTACHMENT 3

INVENTORY AND FIXED ASSETS REPORT

Name of Debtor: Digital Systems, Inc. Case Number: 11-20140-11-rdb

Reporting Period beginning November 1, 2011 Period ending November 30, 2011

INVENTORY REPORT

INVENTORY BALANCE AT PETITION DATE:	$
INVENTORY RECONCILIATION:
Inventory Balance at Beginning of Month	$ 0.00 (a)
PLUS: Inventory Purchased During Month$
MINUS: Inventory Used or Sold	$
PLUS/MINUS: Adjustments or Write-downs	$ *
Inventory on Hand at End of Month	$ 0.00

METHOD OF COSTING INVENTORY: FIFO

*For any adjustments or write-downs provide explanation and supporting documentation, if applicable.

Sale of Assets March 2011.

INVENTORY AGING

Less than 6	6 months to	Greater than	Considered
months old	2 years old	2 years old	Obsolete	Total Inventory

%	100.00 %	%	%	= 100%*

* Aging Percentages must equal 100%.

o Check here if inventory contains perishable items.

Description of Obsolete Inventory:

FIXED ASSET REPORT

FIXED ASSETS FAIR MARKET VALUE AT PETITION DATE:	$ 1.219.241.95(b)
(Includes Property, Plant and Equipment)

BRIEF DESCRIPTION (First Report Only):

FIXED ASSETS RECONCILIATION:
Fixed Asset Book Value at Beginning of Month	$ -0- (a)(b)
MINUS: Depreciation Expense	$
PLUS: New Purchases	$
PLUS/MINUS: Adjustments or Write-downs	$
Ending Monthly Balance	$ -0-

*For any adjustments or write-downs, provide explanation and supporting documentation, if applicable.

Asset Sale March 2011.

BRIEF DESCRIPTION OF FIXED ASSETS PURCHASED OR DISPOSED OF DURING THE REPORTING PERIOD:

(a)This number is carried forward from last month’s report. For the first report only, this number will be the

balance as of the petition date.

(b)Fair Market Value is the amount at which fixed assets could be sold under current economic conditions.

Book Value is the cost of the fixed assets minus accumulated depreciation and other adjustments.

MOR-7

ATTACHMENT 4A

MONTHLY SUMMARY OF BANK ACTIVITY - OPERATING ACCOUNT

Name of Debtor: Digital Systems, Inc. Case Number: 11-20140-11-rdb

Reporting Period beginning November 1, 2011 Period ending November 30, 2011

Attach a copy of current month bank statement and bank reconciliation to this Summary of Bank Activity. A standard bank reconciliation form can be found at http://www.justice.gov/ust/r20/index.htm. If bank accounts other than the three required by the United States Trustee Program are necessary, permission must be obtained from the United States Trustee prior to opening the accounts. Additionally, use of less than the three required bank accounts must be approved by the United States Trustee.

NAME OF BANK: FNB Olathe BRANCH:

ACCOUNT NAME: Operating Account ACCOUNT NUMBER: 0139602

PURPOSE OF ACCOUNT: OPERATING

Ending Balance per Bank Statement

$ 154,606.74

Plus Total Amount of Outstanding Deposits

Minus Total Amount of Outstanding Checks and other debits

$ 219.09 *

Minus Service Charges

Ending Balance per Check Register

$ 154,387.65**(a)

*Debit cards are used by

**If Closing Balance is negative, provide explanation:

4C: TAXES PAID-OTHER

Amount Payee Purpose

The following disbursements were paid in Cash (do not includes items reported as Petty Cash on Attachment 4D: ( o Check here if cash disbursements were authorized by United States Trustee)

Date

Amount

Payee

Purpose

Reason for Cash Disbursement

TRANSFERS BETWEEN DEBTOR IN POSSESSION ACCOUNTS

“Total Amount of Outstanding Checks and other debits”, listed above, includes:

$________________Transferred to Payroll Account

$________________Transferred to Tax Account

(a) The total of this line on Attachment 4A, 4B and 4C plus the total of 4D must equal the amount reported as

“Ending Balance” on Schedule of Receipts and Disbursements (Page MOR-2, Line 7).

MOR-8

ATTACHMENT 5A

CHECK REGISTER - OPERATING ACCOUNT

Name of Debtor: ________________________________ Case Number:

Reporting Period beginning ________________________ Period ending

NAME OF BANK: _______________________________ BRANCH:

ACCOUNT NAME:

ACCOUNT NUMBER:

PURPOSE OF ACCOUNT: OPERATING

Account for all disbursements, including voids, lost checks, stop payments, etc. In the alternative, a computer generated check register can be attached to this report, provided all the information requested below is included.

DATE

CHECK

NUMBER

PAYEE

PURPOSE AMOUNT

SEE ATTACHED

TOTAL

MOR-9

ATTACHMENT 4B

MONTHLY SUMMARY OF BANK ACTIVITY - PAYROLL ACCOUNT

Name of Debtor: Digital Systems, Inc. Case Number: 11-20140-11-rdb

Reporting Period beginning November 1, 2011 Period ending November 30, 2011

Attach a copy of current month bank statement and bank reconciliation to this Summary of Bank Activity. A standard bank reconciliation form can be found at http://www.justice.gov/ust/r20/index.htm.

NAME OF BANK: FNB Olathe BRANCH:

ACCOUNT NAME: Payroll Account ACCOUNT NUMBER: 0149527

PURPOSE OF ACCOUNT: PAYROLL ACCOUNT CLOSED

Ending Balance per Bank Statement	$ 0.00*
Plus Total Amount of Outstanding Deposits	$
Minus Total Amount of Outstanding Checks and other debits	$ 0.00*
Minus Service Charges	$
Ending Balance per Check Register	$ 0.00**(a)

*Debit cards must not be issued on this account.

**If Closing Balance is negative, provide explanation:

The following disbursements were paid by Cash: ( o Check here if cash disbursements were authorized by United States Trustee)

Date

Amount

Payee

Purpose

Reason for Cash Disbursement

The following non-payroll disbursements were made from this account:

Date

Amount

Payee

Purpose

Reason for disbursement from this account

(a)The total of this line on Attachment 4A, 4B and 4C plus the total of 4D must equal the amount reported as

“Ending Balance” on Schedule of Receipts and Disbursements (Page MOR-2, Line 7).

MOR-10

ATTACHMENT 5B

CHECK REGISTER - PAYROLL ACCOUNT

Name of Debtor: Case Number:

Reporting Period beginning Period ending

NAME OF BANK: BRANCH:

ACCOUNT NAME:

ACCOUNT NUMBER:

PURPOSE OF ACCOUNT: PAYROLL

Account for all disbursements, including voids, lost payments, stop payment, etc. In the alternative, a computer generated check register can be attached to this report, provided all the information requested below is included.

DATE

CHECK

NUMBER

PAYEE

PURPOSE AMOUNT

SEE ATTACHED

TOTAL

MOR-11

ATTACHMENT 4C

MONTHLY SUMMARY OF BANK ACTIVITY - TAX ACCOUNT

Name of Debtor: Digital Systems, Inc. Case Number: 11-20140-11-rdb

Reporting Period beginning November 1, 2011 Period ending November 30, 2011

Attach a copy of current month bank statement and bank reconciliation to this Summary of Bank Activity. A standard bank reconciliation form can be found on the United States Trustee website, http://www.justice.gov/ust/r20/index.htm.

NAME OF BANK: BRANCH: ACCOUNT CLOSED

ACCOUNT NAME: ACCOUNT NUMBER:

PURPOSE OF ACCOUNT: TAX

Ending Balance per Bank Statement	$
Plus Total Amount of Outstanding Deposits	$
Minus Total Amount of Outstanding Checks and other debits	$ *
Minus Service Charges	$
Ending Balance per Check Register	$ **(a)

*Debit cards must not be issued on this account.

**If Closing Balance is negative, provide explanation:

The following disbursements were paid by Cash: ( o Check here if cash disbursements were authorized by

United States Trustee)

Date

Amount

Payee

Purpose

Reason for Cash Disbursement

The following non-payroll disbursements were made from this account:

Date

Amount

Payee

Purpose

Reason for disbursement from this account

(a)The total of this line on Attachment 4A, 4B and 4C plus the total of 4D must equal the amount reported as

“Ending Balance” on Schedule of Receipts and Disbursements (Page MOR-2, Line 7).

MOR-12

ATTACHMENT 5C

CHECK REGISTER - TAX ACCOUNT

Name of Debtor: Case Number:

Reporting Period beginning Period ending

NAME OF BANK: BRANCH:

ACCOUNT NAME: ACCOUNT #

PURPOSE OF ACCOUNT: TAX

Account for all disbursements, including voids, lost checks, stop payments, etc. In the alternative, a computer-generated check register can be attached to this report, provided all the information requested below is included.

http://www.usdoj.gov/ust.

DATE

CHECK

NUMBER

PAYEE

PURPOSE AMOUNT

TOTAL

(d)

SUMMARY OF TAXES PAID

Payroll Taxes Paid

(a)

Sales & Use Taxes Paid

(b)

Other Taxes Paid

(c)

TOTAL

(d)

(a) This number is reported in the “Current Month” column of Schedule of Receipts and Disbursements

(Page MOR-2, Line 5O).

(b) This number is reported in the “Current Month” column of Schedule or Receipts and Disbursements

(Page MOR-2, Line 5P).

(Page MOR-2, Line 5Q).

(d) These two lines must be equal.

MOR-13

ATTACHMENT 4D

INVESTMENT ACCOUNTS AND PETTY CASH REPORT

INVESTMENT ACCOUNTS

Each savings and investment account, i.e. certificates of deposits, money market accounts, stocks and bonds, etc., should be listed separately. Attach copies of account statements.

Type of Negotiable

Instrument

Face Value

Purchase Price

Date of Purchase

Current

Market Value

TOTAL

(a)

PETTY CASH REPORT

The following Petty Cash Drawers/Accounts are maintained:

	(Column 2)	(Column 3)	(Column 4)
	Maximum	Amount of Petty	Difference between
Location of	Amount of Cash	Cash On Hand	(Column 2) and
Box/Account	in Drawer/Acct.	At End of Month	(Column 3)





TOTAL		$ (b)

For any Petty Cash Disbursements over $100 per transaction, attach copies of receipts. If there are no receipts, provide an explanation

TOTAL INVESTMENT ACCOUNTS AND PETTY CASH(a + b) $ (c)

(c)The total of this line on Attachment 4A, 4B and 4C plus the total of 4D must equal the

amount reported as “Ending Balance” on Schedule of Receipts and Disbursements (Page

MOR-2, Line 7).

MOR-14

ATTACHMENT 6

MONTHLY TAX REPORT

Name of Debtor: Digital Systems, Inc. Case Number: 11-20140-11-rdb

Reporting Period beginning November 1, 2011 Period ending November 30, 2011

TAXES OWED AND DUE

Report all unpaid post-petition taxes including Federal and State withholding FICA, State sales tax, property tax, unemployment tax, State workmen's compensation, etc.

Name of Taxing	Date Payment			Date Last Tax Return	Tax Return
Authority	Due	Description	Amount	Filed	Period







TOTAL			$

MOR-15

ATTACHMENT 7

SUMMARY OF OFFICER OR OWNER COMPENSATION

SUMMARY OF PERSONNEL AND INSURANCE COVERAGES

Name of Debtor: Digital Systems, Inc. Case Number: 11-20140-11-rdb

Reporting Period beginning November 1, 2011 Period ending November 30, 2011

Report all forms of compensation received by or paid on behalf of the Officer or Owner during the month. Include car allowances, payments to retirement plans, loan repayments, payments of Officer/Owner’s personal expenses, insurance premium payments, etc. Do not include reimbursement for business expenses Officer or Owner incurred and for which detailed receipts are maintained in the accounting records.

Name of Officer or Owner	Title	Description	Amount Paid

David Owen	CEO	Services	$2,000.00

David Owen continues to provide services as the Debtor winds down at the hourly rate of $100.00. These services will not exceed $2,000 per month.

PERSONNEL REPORT

	Full Time	Part Time
Number of employees at beginning of period	0	0
Number hired during the period
Number terminated or resigned during period
Number of employees on payroll at end of period	0	0

CONFIRMATION OF INSURANCE

List all policies of insurance in effect, including but not limited to workers' compensation, liability, fire, theft, comprehensive, vehicle, health and life. For the first report, attach a copy of the declaration sheet for each type of insurance. For subsequent reports, attach a certificate of insurance for any policy in which a change occurs during the month (new carrier, increased policy limits, renewal, etc.).

Agent					Date
and/or	Phone	Policy	Coverage	Expiration	Premium
Carrier	Number	Number	Type	Date	Due

CBIZ Insurance, Kathy Beamis, 913-234-1918

CBIZ/Acuity Insurance Co		X13725	General Liab	4/1/2012	4/1/2012
CBIZ/Nat’l Union Fire		01-146-63-00	D&O	9/30/10	1/1/18

The following lapse in insurance coverage occurred this month:

Policy

Date

Type

Lapsed

Reinstated

Reason for Lapse

G	Check here if U. S. Trustee has been listed as Certificate Holder for all insurance policies.

MOR-16

ATTACHMENT 8

SIGNIFICANT DEVELOPMENTS DURING REPORTING PERIOD

Information to be provided on this page, includes, but is not limited to: (1) financial transactions that are not reported on this report, such as the sale of real estate (attach closing statement); (2) non-financial transactions, such as the substitution of assets or collateral; (3) modifications to loan agreements; (4) change in senior management, etc. Attach any relevant documents.

We anticipate filing a Plan of Liquidation and Disclosure Statement as soon as possible after liquidation of the assets.

MOR-17

BANK RECONCILLIATION	Nov 30, 11
Beginning Balance		161,853.12
Cleared Transactions
Checks and Payments - 12 items		-7,246.38
Deposits and Credits - 1 item		0.00
Total Cleared Transactions		-7,246.38
Cleared Balance		154,606.74
Uncleared Transactions
Checks and Payments - 3 items		-219.09
Total Uncleared Transactions		-219.09
Register Balance as of 11/30/2011		154,387.65
Ending Balance		154,387.65

					11-Nov
	Ordinary Income/Expense			November 2011 Profit & Loss Statement
		Expense
			0-60400 · Professional & Contract Service
				0-60410 · Consulting
				2-60410 · Consulting - Admin	2,000.00
				Total 0-60410 · Consulting	2,000.00
				Legal Fees
				2-60430 · Legal Expense	2,557.32
				Total Legal Fees	2,557.32
				0-60470 · Outside Services
				2-60470 · Outside Services - Admin	1,000.00
				Total 0-60470 · Outside Services	1,000.00
				0-60400 · Professional & Contract Service - Other	650
			Total 0-60400 · Professional & Contract Service		6,207.32
			0-60500 · Facilities & Maintenance Costs
				2-60550 · Rent Building	750
				2-60590 · Utility Expense	106.18
			Total 0-60500 · Facilities & Maintenance Costs		856.18
			0-60800 · Telecommunications
				6-60830 · Telephone Expense	91.48
			Total 0-60800 · Telecommunications		91.48
			0-61600 · Office Supplies and Expenses
				0-61610 · Shipping Supplies
				2-61610 · Shipping Supplies - Admin	21.4
				Total 0-61610 · Shipping Supplies	21.4
			Total 0-61600 · Office Supplies and Expenses		21.4
			0-62100 · Bank and Loan Charges
				2-62110 · Bank Charges	50
			Total 0-62100 · Bank and Loan Charges		50
		Total Expense			7,226.38
	Net Ordinary Income				-7,226.38
Net Income					-7,226.38

NOVEMBER 2011 BALANCE SHEET							30-Nov-11
ASSETS
	Current Assets
		Checking/Savings
			Cash Accounts
				0-10070 · FNB Olathe Checking 013-960-2			154,407.65
			Total Cash Accounts				154,407.65
			Foreign Cash Accounts
				0-10200 · YEN Bank of America 11407006			-3,465.15
				0-10210 · Yen Currency Fluctuation			3,465.15
			Total Foreign Cash Accounts				0
		Total Checking/Savings					154,407.65
		Accounts Receivable
			Accounts Receivable
				0-11000 · Accounts Receivable - Trade			252,876.73
				0-11010 · Accounts Receivable - Dealers			23,719.75
				0-11100 · Allowance for Doubtful Accounts			-100,456.68
			Total Accounts Receivable				176,139.80
		Total Accounts Receivable					176,139.80
		Other Current Assets
			Prepaid Expenses
				0-13000 · Prepaid Expenses			7,650.00
			Total Prepaid Expenses				7,650.00
			Other Current Assets
				0-14000 · Deposits			-1,000.00
			Total Other Current Assets				-1,000.00
		Total Other Current Assets					6,650.00
	Total Current Assets						337,197.45
TOTAL ASSETS							337,197.45
LIABILITIES & EQUITY
	Liabilities
		Current Liabilities
			Accounts Payable
				Accounts Payable
					0-20000 · Accounts Payable		1,190,520.49
					0-20100 · Accounts Payable - Chpt 11		4,941.02
				Total Accounts Payable			1,195,461.51
			Total Accounts Payable				1,195,461.51
			Other Current Liabilities
				Accrued Liabilities
					Accrued Expenses
						0-21000 · Accrued Expenses - Other	52,257.40
						0-21010 · Accrued Property Taxes	26,686.29
						0-21020 · Accrued Sales Tax	3,366.29
					Total Accrued Expenses		82,309.98
				Total Accrued Liabilities			82,309.98
			Total Other Current Liabilities				82,309.98
		Total Current Liabilities					1,277,771.49
	Total Liabilities						1,277,771.49
	Equity
		Shareholders' Equity - CS
			0-30000 · Bridge Warrant 2005 Proceeds				164,991.75
			0-30010 · Stock Option Proceeds				52,650.00
			0-30020 · Public Warrant Proceeds				769,171.09
			0-30040 · Common Stock				36,343,227.14
			0-30050 · Common Stock Restricted				1,560,000.00
			0-30060 · Options Outstanding				2,076,270.47
			0-30065 · Warrants				88,660.94
			0-30070 · Offering Costs				-2,250,025.22
		Total Shareholders' Equity - CS					38,804,946.17
		Other Comprehensive Income
			0-31000 · Deferred currency exchange				3,465.15
		Total Other Comprehensive Income					3,465.15
		0-32000 · Retained Deficit					-36,493,467.90
		Net Income					-3,255,517.46
	Total Equity						-940,574.04
TOTAL LIABILITIES & EQUITY							337,197.45

ICOP DIGITAL, INC. 12/16/201112:58 PM
Register: Cash Accounts: ()-10070 - FNB Olathe Checking 013-960-2
From 11/01/2011 through 11/30/2011
Sorted by: Date, Type, Number/Ref
Date Number Payee Account Memo Payment C Deposit Balance
11/03/2011 1005 Kincaid & Rees Park... 0-60500 Facilities &... November 750.00 X 160,884.03
11/03/2011 1006 Kansas City Power &... 0-60500 Facilities &... Pay Online 70.69 X 160,813.34
11/03/2011 1007 Kansas Gas Service 0-60500 Facilities &... 35.49 X 160,777.85
11/03/2011 1008 EVANS &MULLIN... 0-60400 Professional... 1,852.32 X 158,925.53
11/07/2011 OL AT&T 0-60800 Telecommun... 91.48 X 158,834.05
11/09/2011 OL Marketwire Inc. 0-60400 Professional... ACH 1,000.00 X 157,834.05
11/11/2011 1009 UPS Store 0-61600 Office Suppl... 21.40 X 157,812.65
11/11/2011 1010 Equivest, LLC 0-60400 Professional... November 2,000.00 X 155,812.65
11/11/2011 1011 US Trustee Payment... 0-60400 Professional... VOID: 832-11-... X 155,812.65
11/11/2011 1012 US Trustee Payment... 0-60400 Professional... 832-11-20140 650.00 X 155,162.65
11/11/2011 1013 EVANS &MULLIN... 0-60400 Professional... 705.00 X 154,457.65
11/30/2011 OL First National Batik 0... 0-62100 Bank and Lo... Monthly Cash... 50.00 X 154,407.65

DIGITAL SYSTEMS INC 15621 W 87TH ST PKWY STE 355 LENEXA KS 66219-1435
PERIODIC STATEMENT Date: Nov 30, 2011 Period: Nov 01, 2011 to Nov 30, 2011 (30 Days )
Operating Account
ACCOUNT #: DDA - 0139602
Digital Systems Inc Debtor in Possession
Enclosures: 8
Beginning Balance as of 11/01/11
Deposits & Other Credits Charges & Fees Checks & Other Debits Average Balance Ending Balance as of 11/30/11
Charges And Fees
1 Outgoing Wire Fee Commercial Service Charge
1 Maintenance Fee
8 Per Check Fee
2 ACH Debits
Less Earnings Credit
161,853.12
0.00 20.00 7,226.38 157,839.92
154,606.74
20.00 0.00
10.00 1.20 0.10 11.30
Transaction Information
Date Check#
11/07 11/09
11/09 11/30
Description
ACH Debit Payment ATT OUTGOING WIRE Marketwire, Inc
Outgoing Wire Fee
ACH Debit Cash Mgr FNB
Credit Amount
Debit Amount 91.48
1,000.00 20.00
50.00
Olathe

Account #: DDA-0139602 Periodic Statement Digital Systems Inc

Nov 30, 2011

Check Information

Date Check# Amount Date Check# Amount

11/07 1005 750.00 11/16 1009 21.40

11/08 1006 70.69 11/14 1010 2,000.00

11/17 1008 1,852.32 11/18 1013 705.00

*Indicated a break in the check number order.

Account #139602 - DDA Page 3 of 3

11/7/2011 1005 $750.00

11/8/2011 1006 $70.69

11/8/2011 1007 $35.49

11/17/2011 1008 $1,852.32

11/16/2011 1009 $21.40

11/14/2011 1010 $2,000.00

11/22/2011 1012 $650.00

11/18/2011 1013 $705.00