casedocs.omniagentsolutions.com...in re old aj, inc. f/k/a a. jaffe, inc. case no.18-10510 (shl)...

In re Old AJ, Inc. f/k/a A. Jaffe, Inc. Case No. 18-10510 (SHL) Debtor Reporting Period: August 1, 2018 - August 31, 2018

Federal Tax I.D. # 13-2814756Old AJ, Inc. f/k/a A. Jaffe,

Inc. f/k/aSandberg & Sikorski

Corporation

File with the Court and submit a copy to the United States Trustee within 20 days after the end of the month andsubmit a copy of the report to any official committee appointed in the case. (Reports for Rochester and Buffalo Divisions of Western District of New York are due 15 days after the end ofthe month, as are the reports for Southern District of New York.)

REQUIRED DOCUMENTS Form No. Document Attached

Explanation Attached

Schedule of Cash Receipts and Disbursements MOR-1

Bank Reconciliation (or copies of debtor's bank reconciliations) MOR-1 (CON'T) Copies of bank statements Cash disbursements journalsStatement of Operations MOR-2

Balance Sheet MOR-3Status of Post-petition Taxes MOR-4 Copies of IRS Form 6123 or payment receipt Copies of tax returns filed during reporting periodSummary of Unpaid Post-petition Debts MOR-4

Listing of Aged Accounts PayableAccounts Receivable Reconciliation and Aging MOR-5Taxes Reconciliation and Aging MOR-5 NonePayments to Insiders and Professional MOR-6 NonePost Petition Status of Secured Notes, Leases Payable MOR-6 NoneDebtor Questionnaire MOR-7 None

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documentsare true and correct to the best of my knowledge and belief.

/S/ Richard Levin Date: October 4, 2018Chapter 11 Trustee

See Exhibit E - Aged A/R

See Exhibit D1 - Jaffe AP-Post PetitionSee Exhibit D2 - Dr Balances in AP

CORPORATE MONTHLY OPERATING REPORT

UNITED STATES BANKRUPTCY COURTSOUTHERN DISTRICT OF NEW YORK

See Exhibit AA-1 Operating Summary

A2-Operating Jaffee AR Receipts A3-Operating FFJ AR ReceiptsA4 - Disbursements Summary

A5 - Payroll Summary

None

See Exhibit B Jaffe Income Statement

See Exhibit C Jaffe Balance Sheet

See Exhibit F Bank Statements

Page 1 of 59

18-10509-shl Doc 470 Filed 10/04/18 Entered 10/04/18 15:17:22 Main Document Pg 1 of 75


Amounts reported should be from the debtor’s books and not the bank statement. The beginning cash should be the ending cash from the prior month

or, if this is the first report, the amount should be the balance on the date the petition was filed. The amounts reported in the "CURRENT MONTH -

ACTUAL” column must equal the sum of the four bank account columns. Attach copies of the bank statements and the cash disbursements journal.

The total disbursements listed in the disbursements journal must equal the total disbursements reported on this page. A bank reconciliation must be

attached for each account. [see MOR-1 (CON'T)]

ACCOUNT NUMBER (LAST 4)HSBC Operating Account --

2460HSBC Payroll Account

-- 2486HSBC Disbursement

Account 6873CURRENT MONTH

ACTUAL (TOTAL OF ALL ACCOUNTS)

CASH BEGINNING OF MONTH 185,396 1,129,106 (141,991) 1,172,511 RECEIPTS CASH SALES 594,900 594,900 ACCOUNTS RECEIVABLE - PREPETITION

15,302 15,302

ACCOUNTS RECEIVABLE - POSTPETITION

106,683 106,683

LOANS AND ADVANCES - SALE OF ASSETS * 3,133,189 3,133,189 OTHER Deposit - Sale to Paramount - OTHER 82,471 6,826 89,297 TRANSFERS (FROM DIP ACCTS) 720,000 519,563 1,239,563

TOTAL RECEIPTS 924,456 3,728,089 526,389 5,178,934 DISBURSEMENTS NET PAYROLL (166,858) (166,858) PAYROLL TAXES (69,062) (69,062) SALES, USE, & OTHER TAXES - Utilities - SECURED/ RENTAL/ LEASES - INSURANCE - ADMINISTRATIVE - Refunds -

Operations (33,524) (375,498) (409,023) Restructuring - TRANSFERS (TO DIP ACCTS) (319,563) (920,000) (1,239,563) PROF FEES - Restructure & Ord Course (374,462) (374,462)

U.S. TRUSTEE QUARTERLY FEES (5,939) (5,939) COURT COSTS - TOTAL DISBURSEMENTS (963,470) (920,000) (381,437) (2,264,907)

NET CASH FLOW (RECEIPTS LESS DISBURSEMENTS)

CASH – END OF MONTH 146,382 3,937,195 2,961 4,086,539

DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)

A. Jaffe Total(2,264,907) (2,264,907)

1,239,563 1,239,563

- -

(1,025,344) (1,025,344)

TOTAL DISBURSEMENTS LESS: TRANSFERS TO OTHER DEBTOR IN POSSESSION ACCOUNTS PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts) TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

THE FOLLOWING SECTION MUST BE COMPLETED

(39,014) 2,808,089 144,952

BANK ACCOUNTS

2,914,027

Page 2 of 59



Continuation Sheet for MOR-1A bank reconciliation must be included for each bank account. The debtor's bank reconciliation may be substituted for thispage. (Bank account numbers may be redacted to last four numbers.)

HSBC Operating Account

HSBC Payroll Account

HSBC Disbursement Account (**)

2460 2486 6873

BALANCE PER BOOKS 146,382 3,937,195 2,961 . (696,708.00)

BANK BALANCE 146,382 3,937,195 41,039 (+) DEPOSITS IN TRANSIT (ATTACH LIST)(-) OUTSTANDING CHECKS (ATTACH LIST) :

(38,078)

OTHER (ATTACH EXPLANATION)

ADJUSTED BANK BALANCE * 146,382 3,937,195 2,961 * - "Adjusted Bank Balance" must equal "Balance per Books"

DEPOSITS IN TRANSIT Date Date Amount

BANK RECONCILIATIONS

** - The HSBC disbursement account is a sweep account, in which, on a daily basis, the overdraft balance is bought to zero with a transfer from the HSBC operating account.

3 of 59





CHECKS OUTSTANDING Date Ck. # Amount

Payee Company Date CHECK# AMOUNTDate Company CHECK# AMOUNT Vendor Name

7-Mar-18 JAFFE 26740 130.00$ Sunshine Diamond Cutter Inc.7-Mar-18 JAFFE 26759 100.00 Spiffing Vendor7-Mar-18 JAFFE 26763 25.00 Spiffing Vendor7-Mar-18 JAFFE 26764 150.00 Spiffing Vendor7-Mar-18 JAFFE 26776 75.00 Spiffing Vendor7-Mar-18 JAFFE 26813 100.00 Spiffing Vendor7-Mar-18 JAFFE 26814 100.00 Spiffing Vendor7-Mar-18 JAFFE 26832 50.00 Spiffing Vendor7-Mar-18 JAFFE 26851 20.00 Spiffing Vendor9-Mar-18 JAFFE 26876 50.00 Spiffing Vendor9-Mar-18 JAFFE 26933 100.00 Spiffing Vendor

15-Mar-18 JAFFE 27007 70.00 Spiffing Vendor22-Mar-18 JAFFE 27056 220.00 Kim Tu-Chau28-Mar-18 JAFFE 27098 100.00 Spiffing Vendor13-Apr-18 JAFFE 27226 50.00 Spiffing vendor13-Apr-18 JAFFE 27227 25.00 Spiffing vendor13-Apr-18 JAFFE 27239 25.00 Spiffing vendor13-Apr-18 JAFFE 27243 25.00 Spiffing vendor13-Apr-18 JAFFE 27268 20.00 Spiffing vendor3-May-18 JAFFE 27386 35.00 Spiffing vendor

10-May-18 JAFFE 27475 25.00 Spiffing vendor29-May-18 JAFFE 27607 359.49 MALCA AMIT USA, LLC16-May-18 FFJ 1899 57.48 Euler Hermes North America13-Jun-18 JAFFE 27676 125.00 Spiffing vendor22-Jun-18 JAFFE 27835 100.00 Spiffing vendor22-Jun-18 JAFFE 27874 50.00 Spiffing vendor6-Jun-18 FFJ 43198 5,000.00 FIRESTAR DIAMOND, INC.

19-Jun-18 FFJ 2450 102.10 MALCA-AMIT CHB, INC19-Jun-18 FFJ 2452 123.33 MALCA-AMIT CHB, INC

5-Jul-18 JAFFE 27901 70.00 Spiffing vendor5-Jul-18 JAFFE 27921 125.00 Spiffing vendor5-Jul-18 JAFFE 27927 13.00 Spiffing vendor6-Jul-18 JAFFE 27935 150.00 Spiffing vendor6-Jul-18 JAFFE 27983 50.00 Spiffing vendor

13-Jul-18 JAFFE 28033 25.00 Spiffing vendor24-Jul-18 JAFFE 28082 50.00 Spiffing vendor24-Jul-18 JAFFE 28085 50.00 Spiffing vendor24-Jul-18 JAFFE 28087 50.00 Spiffing vendor24-Jul-18 JAFFE 28091 25.00 Spiffing vendor24-Jul-18 JAFFE 28098 25.00 Spiffing vendor24-Jul-18 JAFFE 28099 25.00 Spiffing vendor24-Jul-18 JAFFE 28100 25.00 Spiffing vendor30-Jul-18 JAFFE 28176 50.00 Spiffing vendor30-Jul-18 JAFFE 28205 75.00 Spiffing vendor30-Jul-18 JAFFE 28217 150.00 Spiffing vendor30-Jul-18 JAFFE 28220 550.00 Spiffing vendor30-Jul-18 JAFFE 28229 325.00 Spiffing vendor30-Jul-18 JAFFE 28247 250.00 Spiffing vendor30-Jul-18 JAFFE 28310 200.00 Spiffing vendor30-Jul-18 JAFFE 28311 330.00 Spiffing vendor30-Jul-18 JAFFE 28317 100.00 Spiffing vendor

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30-Jul-18 JAFFE 28318 100.00 Spiffing vendor30-Jul-18 JAFFE 28322 150.00 Spiffing vendor30-Jul-18 JAFFE 28365 100.00 Spiffing vendor31-Jul-18 JAFFE 28370 12,850.00 AARMADILLO, INC.3-Aug-18 JAFFE 28382 5,706.73 PACIFIC NORTHERN ,INC.6-Aug-18 JAFFE 28387 163.74 SUMAY BHANSALI9-Aug-18 JAFFE 28394 150.00 Spiffing vendor9-Aug-18 JAFFE 28398 50.00 Spiffing vendor9-Aug-18 JAFFE 28403 50.00 Spiffing vendor9-Aug-18 JAFFE 28407 50.00 Spiffing vendor9-Aug-18 JAFFE 28408 50.00 Spiffing vendor9-Aug-18 JAFFE 28411 100.00 Spiffing vendor

14-Aug-18 JAFFE 28422 50.00 Spiffing vendor14-Aug-18 JAFFE 28425 50.00 Spiffing vendor14-Aug-18 JAFFE 28426 50.00 Spiffing vendor14-Aug-18 JAFFE 28428 50.00 Spiffing vendor14-Aug-18 JAFFE 28430 75.00 Spiffing vendor14-Aug-18 JAFFE 28432 25.00 Spiffing vendor14-Aug-18 JAFFE 28433 200.00 Spiffing vendor14-Aug-18 JAFFE 28438 50.00 Spiffing vendor14-Aug-18 JAFFE 28444 150.00 Spiffing vendor14-Aug-18 JAFFE 28445 50.00 Spiffing vendor14-Aug-18 JAFFE 28446 25.00 Spiffing vendor14-Aug-18 JAFFE 28447 100.00 Spiffing vendor14-Aug-18 JAFFE 28448 50.00 Spiffing vendor14-Aug-18 JAFFE 28449 25.00 Spiffing vendor17-Aug-18 JAFFE 28461 25.00 Spiffing vendor22-Aug-18 JAFFE 28472 388.00 SUNSHINE DIAMOND CUTTER INC28-Aug-18 JAFFE 28474 5,938.93 US TRUSTEE28-Aug-18 JAFFE 28475 1,130.42 JOSELYN NAVES

38,078.22$

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In re Old AJ, Inc. f/k/a A. Jaffe, Inc. Debtor Case No. 18-10510 (SHL)

Reporting Period:

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

REVENUES MONTH (MARCH) MONTH (APRIL) MONTH (MAY) MONTH (JUNE) MONTH (JULY) MONTH (AUGUST) CUMULATIVE -FILING TO DATE

Revenues - Recurring Business 806,963 908,949 900,661 821,610 778,536 (24,468) 4,192,251 Revenue - Auction Sales/Paramount Sale *** 1,294,653 5,036,355 6,331,008 Total Revenue 2,073,189 5,011,886 10,523,258 Less: Returns and Allowances - - Net Revenue 806,963 908,949 900,661 821,610 2,073,189 5,011,886 10,523,258 COST OF GOODS SOLD

Beginning Inventory 8,075,839 7,324,898 7,520,201 7,396,090 7,490,946 6,110,333 8,075,839 Add: Purchases (195,048) 679,667 447,572 528,269 844,210 188,042 2,492,711 Add: Cost of Labor - Add: Other Costs (attach schedule) 118,248 8,690 48,180 (22,115) 153,003 Less Write down of inventory sold at auction *** (396,533) (396,533)Less: Ending Inventory 7,324,898 7,520,201 7,396,090 7,490,946 (6,110,333) (214,982) (214,982)Cost of Goods Sold 674,141 493,054 619,863 433,413 1,806,175 6,083,393 10,110,038 Gross Profit 132,822 415,895 280,799 388,197 267,014 (1,071,506) 413,220 OPERATING EXPENSESAdvertising 70,141 28,437 15,166 37,616 41,141 40,208 232,709 Bad Debts ** (28,561) 7,354 8,130 - - - (13,077)Contributions - - - Employee Benefits Programs - - - Officer/Insider Compensation* - - - Insurance 5,299 13,520 6,644 6,989 8,113 40,565 Management Fees/Bonuses - - - Office Expense 8,595 31,643 16,794 28,826 15,821 4,716 106,395 Pension & Profit-Sharing Plans - - - Professional fees - non restructuring 7,000 10,000 67,268 91,094 (109,613) 504 66,253 Repairs and Maintenance - - - Rent and Lease Expense 3,194 4,856 4,364 1,000 5,962 3,875 23,251 Royalty 3,333 3,333 3,333 - - - 9,999 Salaries/Commissions/Fees 256,479 344,772 298,557 286,944 483,929 232,088 1,902,769 Show Expenses 5,529 136,078 7,132 5,420 1,162 155,320 Taxes - Payroll - - - Taxes - Real Estate - - - Taxes - Other 7 (860) - - 5,612 (54) 4,705 Travel and Entertainment (34,522) 11,809 51,265 10,961 21,433 13,611 74,557 Utilities 1,678 1,054 5,568 3,621 2,948 1,046 15,915 Other (see Ex. B - "Profit & Loss") - - - Total Operating Expenses Before Depreciation 292,872 447,698 620,042 473,838 479,641 305,268 2,619,360 Depreciation/Depletion/Amortization - - Net Profit (Loss) Before Other Income & Expenses (160,050) (31,803) (339,244) (85,641) (212,627) (1,376,775) (2,206,140)OTHER INCOME AND EXPENSESOther IncomeInterest Expense 20,414 18,560 19,178 18,560 19,178 - 95,890 Other Expense (bank charges) 7,173 4,177 5,754 3,534 1,800 2,072 24,510 Net Profit (Loss) Before Reorganization Items (187,638) (54,540) (364,175) (107,735) (233,605) (1,378,847) (2,326,540)REORGANIZATION ITEMSProfessional Fees (see MOR-6 ) 245,748 182,135 611,916 1,254,629 638,036 2,932,464 U. S. Trustee Quarterly Fees - 325 11,763 - 33,935 5,939 51,962 Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet)

- - - - - -

Gain (Loss) from Sale of Assets *** - - - - - (4,973,737) (4,973,737)Other Reorganization Expenses (see below ) - 5,000 29,209 77,019 31,516 21,334 164,078 Total Reorganization Expenses - 251,073 223,107 688,935 1,320,080 5,639,046 (1,825,233)Income Taxes - - - - - Net Profit (Loss) (187,638) (305,613) (587,282) (796,670) (1,553,685) (7,017,892) (501,307)*"Insider" is defined in 11 U.S.C. Section 101(31).

STATEMENT OF OPERATIONS (Income Statement)

** The credit balance in the bad debts was attributed to A/R collections on past due receivables that had previously been reserved for.

August 1, 2018 - August 31, 2018

* On August 8, 2018 the company sold the vast majority of it's Inventory and Accounts receivable to Paramount Jewels, LLC. The sale was for total proceeds of $5,029,327, of which amounted to $3,563,000 in casproceeds received, a note receivable held in escrow of $754,402, and new A/R of $711,945. The post-closing figures are subject to change as the post-closing reconciliation is currently in process.

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In re Old AJ, Inc. f/k/a A. Jaffe, Inc. Debtor Case No. 18-10510 (SHL)

Reporting Period:

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

REVENUES MONTH (MARCH) MONTH (APRIL) MONTH (MAY) MONTH (JUNE) MONTH (JULY) MONTH (AUGUST) CUMULATIVE -FILING TO DATE

STATEMENT OF OPERATIONS (Income Statement)

August 1, 2018 - August 31, 2018

BREAKDOWN OF “OTHER” CATEGORYOTHER REORGANIZATION EXPENSESClaims and Noticing Agent (11 U.S.C. § 156(c)) - - - - 20,671 - 20,671 Consulting Fees - - - - - - - Court reporting - - - 2,678 - 979 3,657 Litigation support & e-discovery - 5,000 29,209 73,991 10,845 20,355 139,400 Other - - - 350 - - 350 Total - 5,000 29,209 77,019 31,516 21,334 164,078

Reorganization Items - Interest Earned on Accumulated Cash from Chapter 11:Interest earned on cash accumulated during the chapter 11 case, which would not have beenearned but for the bankruptcy proceeding, should be reported as a reorganization item.

OTHER COST OF GOOD SOLDProduct models 112,634 - - - - - 112,634 Design costs 5,615 8,690 47,310 - (22,115) - 39,500 Factory repairs - - 870 - - - 870 Total 118,249 8,690 48,180 - (22,115) - 153,004

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In re Old AJ, Inc. f/k/a A. Jaffe, Inc. Case No. 18-10510 (SHL) Debtor

Reporting Period: August 1, 2018 - August 31, 2018

BALANCE SHEETThe Balance Sheet is to be completed on an accrual basis only. Pre-petition liabilities must be classified separately from post-petition obligations.

ASSETS BOOK VALUE AT END OF CURRENT REPORTING MONTH - August 2018

BOOK VALUE AT END OF CURRENT REPORTING

MONTH - July 2018

BOOK VALUE ON PETITION DATE OR

SCHEDULED

CURRENT ASSETS

Unrestricted Cash and Equivalents 4,086,538 1,172,511 786,010 Restricted Cash and Cash Equivalents (see continuation sheet) Accounts Receivable (Net) *** 3,100,949 7,410,765 7,298,319 Notes Receivable *** 754,402 - 11,216,467 Inventories 214,982 6,110,333 8,075,839 Prepaid Expenses 370,966 405,810 442,230 Professional RetainersOther Current Assets (See tab "Balance Sheet") 50,725 50,725 TOTAL CURRENT ASSETS 8,578,562 15,150,144 27,818,865 PROPERTY & EQUIPMENT

Real Property and ImprovementsMachinery and EquipmentFurniture, Fixtures and Office EquipmentLeasehold ImprovementsVehiclesLess: Accumulated Depreciation TOTAL PROPERTY & EQUIPMENT - - - OTHER ASSETS

Amounts due from Insiders* 11,222,242 11,222,242 Other Assets (attach schedule)TOTAL OTHER ASSETS 11,222,242 11,222,242 - TOTAL ASSETS 19,800,804 26,372,386 27,818,865

LIABILITIES AND OWNER EQUITY BOOK VALUE AT END OF CURRENT REPORTING MONTH - August 2018

BOOK VALUE AT END OF CURRENT REPORTING

MONTH - July 2018

BOOK VALUE ON PETITION DATE OR

SCHEDULEDLIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition)

Accounts Payable ** 551,221 627,629 Taxes Payable (refer to FORM MOR-4)Wages PayableNotes PayableRent / Leases - Building/EquipmentSecured Debt / Adequate Protection PaymentsProfessional Fees 1,550,580 1,269,533 Amounts Due to Insiders*(Interest)Deferred Revenue 429,811 429,811 TOTAL POST-PETITION LIABILITIES 2,531,612 2,326,973 - LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)

Secured DebtPriority DebtUnsecured Debt 38,374,123 38,132,453 38,475,016 TOTAL PRE-PETITION LIABILITIES 38,374,123 38,132,453 38,475,016 TOTAL LIABILITIES 40,905,736 40,459,426 38,475,016 OWNERS' EQUITY

Capital Stock 5,500 5,500 5,500 Additional Paid-In Capital 5,711,900 5,711,900 5,711,900 Partners' Capital AccountOwner's Equity AccountRetained Earnings - Pre-Petition (16,373,551) (16,373,551) (16,373,551)Retained Earnings - Post-petition (10,448,781) (3,430,889)Adjustments to Owner Equity (See Below)Post-petition Contributions (attach schedule)NET OWNERS’ EQUITY (21,104,932) (14,087,040) (10,656,151)TOTAL LIABILITIES AND OWNERS' EQUITY 19,800,804 26,372,386 27,818,865 *"Insider" is defined in 11 U.S.C. Section 101(31).

*** The post-closing figures representing the sale of A. Jaffe to Paramount are subject to change as the post-closing reconciliation is currently in process.

** Includes approximately $465k that the company does not intend to pay, much of which is over 90+ since invoicing. Included balances represent pre-petition purchases from affiliates that were booked by the India accounting department with post-petition dates, amounts that were prepaid and the prepaid asset and liability have not been offset, balances due back to customers which will likely be offset against A/R collections, amounts already settled, etc. See Exhibit D for more detail.

Page 8 of 59




BALANCE SHEET - continuation sectionASSETS BOOK VALUE AT END OF

CURRENT REPORTING MONTH

BOOK VALUE AT END OF PRIOR REPORTING

MONTH

BOOK VALUE ON PETITION DATE

Other Current Assets Deposits 50,725 50,725

Other Assets

LIABILITIES AND OWNER EQUITY BOOK VALUE ON PETITION DATE

Other Post-petition Liabilities

Adjustments to Owner’s EquityNet Income

Post-Petition Contributions

Page 9 of 59




The beginning tax liability should be the ending liability from the prior month or, if this is the first report, theamount should be zero.The company remits all tax payments to ADP as part of its payroll processing service. Unless ADP has 100% of the taxdollars required, the payroll will not be processed. ADP assume the reponsiblity for transferring the tax dollars to thproper authorities.

FederalBeginning

TaxAmount Withheld

and/or AccruedAmount

Paid Date Paid Check # or EFT Ending TaxWithholding - 26,131 26,131 8/15, 8/29 EFT - FICA-Employee - 15,423 15,423 8/15, 8/29 EFT - FICA-Employer - 15,423 15,423 8/15, 8/29 EFT - Unemployment - EFT - Income - - Other:_____________ - - Total Federal Taxes - 56,977 56,977 - State and Local

Withholding 11,811 11,811 8/15, 8/29 EFT - Sales - Excise - Unemployment 24 24 8/15, 8/29 EFT - Real Property - Personal Property - Other: Disability 249 249 8/15, 8/29 EFT - Total State and Local 12,084 12,084 -

Total Taxes 69,062 69,062 -

Listing of Aged A/P in Exhibit D

Current 0-30 31-60 61-90 Over 91 Total

Accounts Payable * 65,614 (67,374) 88,248 464,733 551,221 Plus: Credit Balance in AR, which was added to AP

Wages PayableTaxes PayableRent/Leases-BuildingRent/Leases-EquipmentSecured Debt/Adequate Protection PaymentsProfessional Fees 1,550,580 - - - 1,550,580 Amounts Due to Insiders - Other:______________Other:______________ - Total Post-petition Debts - 1,616,195 (67,374) 88,248 464,733 2,101,801

Explain how and when the Debtor intends to pay any past due post-petition debts.

STATUS OF POST-PETITION TAXES

SUMMARY OF UNPAID POST-PETITION DEBTS **

* The company was not allowed to purchase product from affiliate companies after the Chapter 11 filing. The post-closing figures, including A/P balances, are subject to change as the post-closing reconciliation is currently in process.

The Debtor expects to pay all Post-Petition debts with the existing cash. The books and records of the company are maintained in India.

Number of Days Past Invoice Date

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Amount7,410,765 4,469,716

(3,684,984) Other write offs * (5,094,548) Other

3,100,949

Gross Accounts Receivable Aging 0-30 Days 31-60 Days 61-90 Days 91+ Days Total0 - 30 days old 712,310 47,353 (1,295) 2,342,580 3,100,949 31 - 60 days old - 61 - 90 days old - 91+ days old - Total Accounts Receivable 712,310 47,353 (1,295) 2,342,580 3,100,949

Less Bad Debt Allowance & Accrued Advertising Allowance

- - - - -

Net Accounts Receivable (Exclusive of Debit Balances & Inclusive of Credit Balances)

712,310 47,353 (1,295) 2,342,580 3,100,949

Plus Credit Balances in AR Aging ** - - - - - Plus Debit Balances in AP Aging (5,921) 8,667 4,890 612,507 620,143

Net Accounts Receivable (Inclusive of Debit Balances and Exclusive of Credit Balances)

706,389 56,020 3,595 2,955,088 3,721,092

** The post-closing figures, including A/R credit balances, are subject to change as the post-closing reconciliation is currently in process.

Taxes Payable 0-30 Days 31-60 Days 61-90 Days 91+ Days Total0 - 30 days old31 - 60 days old61 - 90 days old91+ days oldTotal Taxes PayableTotal Accounts Payable

TAXES RECONCILIATION AND AGING

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

Accounts Receivable ReconciliationNet Accounts Receivable at the beginning of the reporting periodPlus: Amounts billed (net of credits including advertising) during the period *

Less: Amounts collected during the period *

Net Accounts Receivable at the end of the reporting period

* On August 8, 2018 the company sold the vast majority of it's Inventory and Accounts receivable to Paramount Jewels, LLC. The sale was for total proceeds of $5,029,327, of which amounted to $3,563,000 in cash proceeds received, a note receivable held in escrow of $754,402, and new A/R of $711,945. The post-closing figures, including A/R credit balances, are subject to change as the post-closing reconciliation is currently in process.

11 of 59


In re Old AJ, Inc. f/k/a A. Jaffe, Inc. Case No. Debtor Reporting Period:

Of the total disbursements shown on the Cash Receipts and Disbursements Report (MOR-1) list the amount paid to insiders (as defined in Section 101(31) (A)-(F) of the U.S. Bankruptcy Code) and to professionals. For payments to insiders, identify the type of compensation paid(e.g. Salary, Bonus, Commissions, Insurance, Housing Allowance, Travel, Car Allowance, Etc.). Attach additional sheets if necessary.

NAME TYPE OF PAYMENT

AMOUNT PAID IN CURRENT

PERIOD DATE PAIDTOTAL PAID TO

DATE

-$ -$

NAME APPLICABLE FEE PERIOD

AMOUNT OF MONTHLY FEE

STATEMENTAMOUNT

APPROVEDAMOUNT PAID IN CURRENT MONTH

AMOUNT PAID IN PRIOR PERIODS

TOTAL PAID TO DATE

TOTAL INCURRED & UNPAID*

Getzler Henrich & Associates , LLC February 26, 2018 - March 31, 2018 31,832 31,832 - 31,833 ** **Getzler Henrich & Associates , LLC April 1, 2018 - April 30, 2018 24,352 24,352 - 24,352 ** **Getzler Henrich & Associates , LLC May 1, 2018 - May 31, 2018 34,384 34,384 - 34,743 ** **Getzler Henrich & Associates , LLC June 1, 2018 - June 30, 2018 76,656 76,656 - 74,582 ** **Getzler Henrich & Associates , LLC July 1, 2018 - August 4, 2018 104,334 104,334 104,334 - ** **Getzler Henrich & Associates , LLC August 5, 2018 - September 1, 2018 70,932 - - - 269,844 72,645 Klestadt Winters Jureller Southard & Stevens LLP February 26, 2018 - March 31, 2018 148,662 118,931 - 118,931 ** **Klestadt Winters Jureller Southard & Stevens LLP April 1, 2018 - April 30, 2018 89,389 71,528 - 71,528 ** **Klestadt Winters Jureller Southard & Stevens LLP May 1, 2018 - May 31, 2018 318,811 255,345 - 255,346 ** **Klestadt Winters Jureller Southard & Stevens LLP June 1, 2018 - June 14, 2018 19,025 15,318 15,318 - 461,124 114,763 Forchelli Deegan Terrana LLP February 26, 2018 - March 31, 2018 6,302 5,041 - 5,041 ** **Forchelli Deegan Terrana LLP April 1, 2018 - April 30, 2018 6,435 5,148 - 5,148 ** **Forchelli Deegan Terrana LLP May 1, 2018 - May 31, 2018 12,086 8,892 - 8,892 ** **Forchelli Deegan Terrana LLP June 1, 2018 - June 3, 2018 175 140 140 - 19,221 5,777 Lackenbach Siegel, LLP February 26, 2018 - March 31, 2018 1,756 1,494 - 1,494 ** **Lackenbach Siegel, LLP April 1, 2018 - April 30, 2018 6,856 6,133 - - ** **Lackenbach Siegel, LLP May 1, 2018 - May 31, 2018 8,886 8,550 - 14,184 ** **Lackenbach Siegel, LLP June 1, 2018 - June 14, 2018 435 348 420 - 16,098 1,835 Marks Paneth LLP February 26, 2018 - March 31, 2018 62,099 49,679 - 49,679 ** **Marks Paneth LLP April 1, 2018 - April 30, 2018 45,006 36,004 - 36,004 ** **Marks Paneth LLP May 1, 2018 - May 31, 2018 89,455 71,563 - 71,564 ** **Marks Paneth LLP June 1, 2018 - June 30, 2018 99,902 10,650 10,650 - 167,897 128,565 Baker Hostetler LLP (examiner) April 1, 2018 - April 30, 2018 4,484 3,587 - 3,587 ** **Baker Hostetler LLP (examiner) May 1, 2018 - May 31, 2018 14,160 11,328 - 11,328 ** **Baker Hostetler LLP (examiner) June 1, 2018 - June 30, 2018 5,517 4,413 4,413 - ** **Baker Hostetler LLP (examiner) July 1, 2018 - July 31, 2018 6,136 4,909 - - ** **Baker Hostetler LLP (examiner) - accrued** August 1, 2018 - August 31, 2018 20,000 - - - 19,328 30,969 Baker Hostetler LLP (attorney for examiner) April 1, 2018 - April 30, 2018 34,823 27,863 - 27,863 ** **Baker Hostetler LLP (attorney for examiner) May 1, 2018 - May 31, 2018 121,921 97,720 - 97,720 ** **Baker Hostetler LLP (attorney for examiner) June 1, 2018 - June 30, 2018 127,747 104,019 108,432 - ** **Baker Hostetler LLP (attorney for examiner) July 1, 2018 - July 31, 2018 133,876 107,101 - - ** **Baker Hostetler LLP (attorney for examiner) - accrued ** August 1, 2018 - August 31, 2018 275,000 - - - 234,015 459,352 Alvarez & Marsal (FA for examiner) April 19, 2018 - May 31, 2018 90,234 72,966 - 68,990 ** **Alvarez & Marsal (FA for examiner) June 1, 2018 - June 30, 2018 149,735 120,209 124,205 - ** **Alvarez & Marsal (FA for examiner) July 1, 2018 - July 31, 2018 130,925 105,383 - - **Alvarez & Marsal (FA for examiner) August 1, 2018 - August 31, 2018 124,157 - - - 193,195 301,856 Jenner & Block LLP (Trustee) June 14, 2018 - July 31, 2018 223,952 223,952 - - ** **Jenner & Block LLP (Trustee) August 1, 2018 - August 31, 2018 106,736 - - - - 330,688 Alvarez & Marsal (FA for Trustee) June 14, 2018 - June 30, 2018 17,206 13,764 - - ** **Alvarez & Marsal (FA for Trustee) July 1, 2018 - July 31, 2018 21,961 17,572 - - ** **Alvarez & Marsal (FA for Trustee) August 1, 2018 - August 31, 2018 47,149 - - - - 86,316 Gem Cerltification & Assurance June 29, 2018 - July 31, 2018 17,813 17,813 - - **Gem Cerltification & Assurance August 1, 2018 - August 31, 2018 - - - - - 17,813

2,931,301 1,868,920 367,912 1,012,810 1,380,721 1,550,580 * INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED, PER THE MONTHLY FEE STATEMENT FILED.* AMOUNT OF MONTHLY FEE STATEMENT FOR THE APPLICABLE FEE PERIOD ENDING AUGUST 31, 2018 IS AN ACCRUAL.

TOTAL PAYMENTS TO PROFESSIONALS

PROFESSIONALS

18-10510 (SHL)August 1, 2018 - August 31, 2018

PAYMENTS TO INSIDERS AND PROFESSIONALS

INSIDERS

TOTAL PAYMENTS TO INSIDERS

Page 12 of 59


In re Old AJ, Inc. f/k/a A. Jaffe, Inc. Case No. Debtor Reporting Period:

18-10510 (SHL)August 1, 2018 - August 31, 2018

PAYMENTS TO INSIDERS AND PROFESSIONALS

NAME OF CREDITOR SCHEDULED MONTHLY PAYMENT DUE

AMOUNT PAID DURING MONTH

TOTAL UNPAID POST-PETITION

0 0

POST-PETITION STATUS OF SECURED NOTES, LEASES PAYABLEAND ADEQUATE PROTECTION PAYMENTS

TOTAL PAYMENTS

Page 13 of 59


In re Old AJ, Inc. f/k/a A. Jaffe, Inc. Case No. 18-10510 (SHL)

Debtor Reporting Period: August 1, 2018 - August 31, 2018

Must be completed each month. If the answer to any of the questions is “Yes”, provide a detailed explanation of each item. Attach additional sheets if necessary.

Yes No

1Have any assets been sold or transferred outside the normal course of business this reporting period? *

X

2Have any funds been disbursed from any account other than a debtor in possession account this reporting period?

X

3Is the Debtor delinquent in the timely filing of any post-petition tax returns?

X

4Are workers compensation, general liability or other necessary insurance coverages expired or cancelled, or has the debtor received notice of expiration or cancellation of such policies?

X

5 Is the Debtor delinquent in paying any insurance premium payment? X

6 Have any payments been made on pre-petition liabilities this reporting period?

X (Pre-Petition Critical Vendors

and Credit Insurance)

7Are any post petition receivables (accounts, notes or loans) due from related parties?

X

8 Are any post petition payroll taxes past due? X9 Are any post petition State or Federal income taxes past due? X

10 Are any post petition real estate taxes past due? X11 Are any other post petition taxes past due? X12 Have any pre-petition taxes been paid during this reporting period? X13 Are any amounts owed to post petition creditors delinquent? X14 Are any wage payments past due? X

15Have any post petition loans been received by the Debtor from any party?

X

16 Is the Debtor delinquent in paying any U.S. Trustee fees? X

17Is the Debtor delinquent with any court ordered payments to attorneys or other professionals?*

X

18Have the owners or shareholders received any compensation outside of the normal course of business?

X

NOTE:

DEBTOR QUESTIONNAIRE

* On August 8, 2018 the company sold the vast majority of it's Inventory and Accounts receivable to Paramount Jewels, LLC. The sale was for total proceeds of $5,029,327, of which amounted to $3,563,000 in cash proceeds received, a note receivable held in escrow of $754,402, and new A/R of $711,945. The post-closing figures, including A/R credit balances, are subject to change as the post-closing reconciliation is currently in process.

14 of 59


EXHIBIT A

15 of 59


AJaffee/FFJBankGLDetail‐August2018OrignalFileNames:BankGLDetails08.01.2018to08.08.2018andBankGLDetails08.09.2018to08.31.2018Source:AltamashOperatingAccount#2460:08/01/2018to08/31/2018

Keysort:Naturefordisbursements,Divisionforcollections

Division Voucher Date Yearclosed Periodcode Currency Amountcurren Ledgeraccount Accountname Name Nature Transactiontext

OpeningBalance 185,396$

ReceiptsJaffe 110,937FFJ 11,048BankTransfersIn 720,000Other 82,471Totalreceipts 924,456$

DisbursementsTransfers (319,563)Professionalfees‐restructuring (374,462)Netpayroll (166,858)Payrolltaxes (69,062)Operations (33,524)Totaldisbursements (963,470)$

EndingBalance 146,382$

ReceiptsJaffe

JAFFE CP‐024510 8/1/2018 No Normal USD 668 101100 Operating RICHARDSONJEWELERS RevenueJAFFE CP‐024518 8/2/2018 No Normal USD 1,726 101100 Operating BENOLD'SJEWELERS,LTD RevenueJAFFE CP‐024519 8/2/2018 No Normal USD 746 101100 Operating BENOLD'SJEWELERS,LTD RevenueJAFFE CP‐024520 8/2/2018 No Normal USD 893 101100 Operating BENOLD'SJEWELERS,LTD RevenueJAFFE CP‐024521 8/2/2018 No Normal USD 1,194 101100 Operating JRDUNNJEWELERS RevenueJAFFE CP‐024522 8/2/2018 No Normal USD 491 101100 Operating RASMUSSENDIAMONDS RevenueJAFFE CP‐024523 8/2/2018 No Normal USD 2,061 101100 Operating RASMUSSENDIAMONDS RevenueJAFFE CP‐024524 8/2/2018 No Normal USD 8,064 101100 Operating WILLIAMSJEWELERSOFCHERRYCREEK,LTD. RevenueJAFFE CP‐024525 8/2/2018 No Normal USD 284 101100 Operating RUMMELE'SJEWELERS RevenueJAFFE CP‐024526 8/2/2018 No Normal USD 1,729 101100 Operating ROLLANDSJEWELERS RevenueJAFFE CP‐024527 8/2/2018 No Normal USD 986 101100 Operating MEIEROTTO'S RevenueJAFFE CP‐024528 8/2/2018 No Normal USD 3,693 101100 Operating JUHAS&SULLIVANINC. RevenueJAFFE CP‐024529 8/2/2018 No Normal USD 1,986 101100 Operating SIMPLYRADIANT RevenueJAFFE CP‐024530 8/3/2018 No Normal USD 752 101100 Operating MEDAWARJEWELERS RevenueJAFFE CP‐024531 8/3/2018 No Normal USD 597 101100 Operating H.E.MURDOCKCO.,INC. RevenueJAFFE CP‐024532 8/3/2018 No Normal USD 1,278 101100 Operating SATHER'SLEADINGJEWELERS,INC. RevenueJAFFE CP‐024533 8/3/2018 No Normal USD 2,292 101100 Operating SACHSJEWELERY RevenueJAFFE CP‐024534 8/3/2018 No Normal USD 362 101100 Operating KARATSINC RevenueJAFFE CP‐024535 8/3/2018 No Normal USD 2,985 101100 Operating JEWELBOXMORGANHILL,LP RevenueJAFFE CP‐024536 8/3/2018 No Normal USD 2,428 101100 Operating UNICORNJEWELERS,INC. RevenueJAFFE CP‐024537 8/3/2018 No Normal USD 1,917 101100 Operating TheDiamondGalleria Revenue

JAFFE CP‐024538 8/6/2018 No Normal USD 3,547 101100 Operating CIRELLIJEWELERS RevenueJAFFE CP‐024539 8/6/2018 No Normal USD 894 101100 Operating JAMESANDSONSLTD.INC. RevenueJAFFE CP‐024540 8/6/2018 No Normal USD 6,062 101100 Operating BERNIEROBBINS RevenueJAFFE CP‐024541 8/6/2018 No Normal USD 441 101100 Operating TheDiamondGalleria RevenueJAFFE CP‐024542 8/6/2018 No Normal USD 9,624 101100 Operating MOODY'SJEWELRY,INC/,MAJORS RevenueJAFFE CP‐024543 8/6/2018 No Normal USD 761 101100 Operating J.KEITH'SJEWELERS RevenueJAFFE CP‐024544 8/6/2018 No Normal USD 1,000 101100 Operating MAXJEWELERS RevenueJAFFE CP‐024545 8/6/2018 No Normal USD 4,460 101100 Operating LEEREADJEWELERS/MAJORS RevenueJAFFE CP‐024546 8/6/2018 No Normal USD 918 101100 Operating DIADENJ,INC. RevenueJAFFE CP‐024547 8/6/2018 No Normal USD 1,070 101100 Operating BORSHEIMCO. RevenueJAFFE CP‐024548 8/6/2018 No Normal USD 3,693 101100 Operating JOHANNES/HUNTER,INC. RevenueJAFFE CP‐024549 8/6/2018 No Normal USD 970 101100 Operating JOHANNES/HUNTER,INC. RevenueJAFFE CP‐024550 8/6/2018 No Normal USD 990 101100 Operating GOLDENIMPRESSIONS RevenueJAFFE CP‐024551 8/6/2018 No Normal USD 672 101100 Operating MINERSNORTHJEWELERS RevenueJAFFE CP‐024552 8/6/2018 No Normal USD 3,478 101100 Operating SIEBKEHOYT,INC RevenueJAFFE CP‐024553 8/6/2018 No Normal USD 1,790 101100 Operating BEREJEWELERS RevenueJAFFE CP‐024554 8/6/2018 No Normal USD 365 101100 Operating D.GELLER&SONS RevenueJAFFE CP‐024555 8/6/2018 No Normal USD 5,080 101100 Operating QuestFineJewelers RevenueJAFFE CP‐024556 8/6/2018 No Normal USD 728 101100 Operating SARTOR‐HAMANN,INC. RevenueJAFFE CP‐024557 8/6/2018 No Normal USD 2,995 101100 Operating MATHEU'SFINEWATCHES&JEWELRY RevenueJAFFE CP‐024558 8/6/2018 No Normal USD 2,335 101100 Operating MOODY'SJEWELRY,INC/,MAJORS RevenueJAFFE CP‐024559 8/6/2018 No Normal USD 8,474 101100 Operating ROBBINSBROS.JEWELRYINC. RevenueJAFFE CP‐024560 8/6/2018 No Normal USD 1,060 101100 Operating MORGANJewelers/Majors Revenue

JAFFE CP‐024562 8/7/2018 No Normal USD 2,630 101100 Operating DIRECTSALE RevenueJAFFE CP‐024563 8/7/2018 No Normal USD 1,679 101100 Operating ValleyJewelersd/b/aYonansJewelers RevenueJAFFE CP‐024564 8/7/2018 No Normal USD 2,940 101100 Operating MORGANJewelers/Majors RevenueJAFFE CP‐024565 8/8/2018 No Normal USD 5,150 101100 Operating TAPPER'SFINEJEWELRY,INC. Revenue

110,937

ReceiptsFFJFFJ 71556 8/2/2018 No Normal USD 1,620 101100 Operating Menser&Company RevenueFFJ 99442 8/3/2018 No Normal USD 3,025 101100 Operating REISNICHOLSINC RevenueFFJ 68613 8/3/2018 No Normal USD 1,055 101100 Operating Laskers,Inc RevenueFFJ 29916 8/6/2018 No Normal USD 1,520 101100 Operating RICHARDSONJEWELERS RevenueFFJ 996419 8/6/2018 No Normal USD 1,000 101100 Operating JOSEPHHANNOUSHFAMILYINC RevenueFFJ 6378 8/6/2018 No Normal USD 1,000 101100 Operating B&BINVESTMENTSINC RevenueFFJ 130818 8/6/2018 No Normal USD 745 101100 Operating SIEBKE&HOYTINC‐P105 RevenueFFJ 219507164' 8/7/2018 No Normal USD 1,083 101100 Operating BBB Revenue

11,048

BankTransfersInJAFFE GJV‐308911 8/3/2018 No Normal USD 300,000 101100 Operating InternalTransfer InternalTransferJAFFE GJV‐308941 8/13/2018 No Normal USD 120,000 101100 Operating Transfer TransferJAFFE GJV‐308943 8/23/2018 No Normal USD 100,000 101100 Operating Transfer TransferJAFFE GJV‐308944 8/28/2018 No Normal USD 100,000 101100 Operating Transfer TransferJAFFE GJV‐308945 8/29/2018 No Normal USD 100,000 101100 Operating Transfer Transfer

720,000

OtherReceipts

ExhibitA‐1;OperatingAccount‐2460

16 of 59


AJaffee/FFJBankGLDetail‐August2018OrignalFileNames:BankGLDetails08.01.2018to08.08.2018andBankGLDetails08.09.2018to08.31.2018Source:AltamashOperatingAccount#2460:08/01/2018to08/31/2018


Division Voucher Date Yearclosed Periodcode Currency Amountcurren Ledgeraccount Accountname Name Nature Transactiontext

ExhibitA‐1;OperatingAccount‐2460

JAFFE GJV‐308909 8/6/2018 No Normal USD 54 101100 Operating TaxRefundDept.ofMassachusettsRefundoftax

JAFFE GJV‐308940 8/13/2018 No Normal USD 12,546 101100 Operating PayrollRefund PayrollRefundJAFFE GJV‐308942 8/15/2018 No Normal USD 1,959 101100 Operating 401kRefund 401kRefundJAFFE GJV‐308962 8/23/2018 No Normal USD 65 101100 Operating ADPTaxrefund ADPTaxrefund

JAFFE GJV‐308964 8/31/2018 No Normal USD 65,980 101100 OperatingPayrollRefund(Paramount) PayrollRefund(Paramount)

JAFFE GJV‐308963 8/31/2018 No Normal USD 1,866 101100 Operating Dividend Dividend82,471

BankTransfersOutJAFFE GJV‐308912 8/3/2018 No Normal USD (51,809) 101100 Operating InternalTransfer InternalTransferJAFFE GJV‐308913 8/7/2018 No Normal USD (214,995) 101100 Operating InternalTransfer InternalTransferJAFFE GJV‐308914 8/8/2018 No Normal USD (52,759) 101100 Operating InternalTransfer InternalTransfer

(319,563)

ProfessionalFees‐JAFFE VP‐027416 8/17/2018 No Normal USD (140) 101100 Operating FORCHELLIDEEGANTERRANALLP LegalFees JULYFEESJAFFE GJV‐308946 8/14/2018 No Normal USD (172) 101100 Operating MapTax MapTaxJAFFE VP‐027415 8/17/2018 No Normal USD (420) 101100 Operating LACKENBACHSIEGEL,LLP LegalFees JULYFEESJAFFE GJV‐308952 8/23/2018 No Normal USD (520) 101100 Operating DuefromFirestar NikhilSatalkar‐FSIJAFFE GJV‐308955 8/31/2018 No Normal USD (545) 101100 Operating DuefromFirestar AvinashOza‐FSIJAFFE GJV‐308951 8/23/2018 No Normal USD (689) 101100 Operating DuefromFirestar MohsinShaikh‐FSIJAFFE GJV‐308953 8/24/2018 No Normal USD (689) 101100 Operating DuefromFirestar MubinShaikh‐FSIJAFFE GJV‐308954 8/24/2018 No Normal USD (695) 101100 Operating DuefromFirestar SantoshNirmal‐FSIJAFFE GJV‐308950 8/23/2018 No Normal USD (1,020) 101100 Operating DuefromFirestar AshutoshBhamare‐FSIJAFFE GJV‐308949 8/23/2018 No Normal USD (1,025) 101100 Operating DuefromFirestar AvinashOza‐FSIJAFFE GJV‐308948 8/21/2018 No Normal USD (1,861) 101100 Operating BankCharges BankChargesJAFFE GJV‐308947 8/17/2018 No Normal USD (3,747) 101100 Operating 401k 401kJAFFE VP‐027414 8/17/2018 No Normal USD (10,650) 101100 Operating MARKSPANETHLLP LegalFees JULYFEESJAFFE VP‐027413 8/17/2018 No Normal USD (15,318) 101100 Operating KLESTADTWINTERSJURELLERSOUTHARD LegalFees JULYFEESJAFFE VP‐027419 8/30/2018 No Normal USD (104,334) 101100 Operating GETZLERHENRICH&ASSOCIATESLLC LegalFees JULYFEESJAFFE VP‐027288 8/8/2018 No Normal USD (108,432) 101100 Operating BAKER&HOSTETLER LegalFees JUNEFEESJAFFE VP‐027365 8/8/2018 No Normal USD (124,205) 101100 Operating ALVAREZANDMARSALLLC LegalFees JUNEFEES

(374,462)

PayrollJAFFE Payroll 8/31/2018 No Normal USD (156,858) 101100 Operating Payroll PayrollJAFFE VP‐027417 8/21/2018 No Normal USD (10,000) 101100 Operating AARMADILLO STAYBONUS STAYBONUS

(166,858)

PayrollTaxJAFFE Payroll 8/31/2018 No Normal USD (69,062) 101100 Operating PayrollTaxes PayrollTaxes

(69,062)

OperatingJAFFE GJV‐308910 8/6/2018 No Normal USD (22) 101100 Operating BankCharges BankChargesJAFFE GJV‐308916 8/3/2018 No Normal USD (1,959) 101100 Operating 401K 401K

JAFFE CCV‐90117 8/1/2018 No Normal USD (668) 101100 Operating RICHARDSONJEWELERS RevenueCanceled:CP‐024510,postedincorrectdate

FFJ MKS18/08‐00 8/22/2018 No Normal USD (16,471) 101100 Operating Trade‐PurchaseMKSINTERNATIONALJEWELRYCO

JAFFE VP‐027418 8/23/2018 No Normal USD (13,010) 101100 Operating SOFTWAREDEVELOPERSBackOfficeExpense BACKOFFICE

FFJ JS23047/102 8/28/2018 No Normal USD (1,394) 101100 Operating Trade‐Purchase JEWELSOCIETYLIMITED(33,524)

17 of 59


Jaffe A/R CollectionsOriginal file Name: Collections Detail 5‐1 to Aug 8Source: JoanneIssue: This is cash deposits on A/R, needs to tie out to GL bank account cash detail

Date Rec'd Customer ck # Amt Pre/Post Pet

Post Petition 99,155 Pre Petition 11,782 Total cash 110,937 Other Credits -

Total A/R Receipts 110,937

Date Rec'd Customer ck # Amt Pre/Post Pet1‐Aug RICHARDSON JEWELERS CK 29901 668 Post-Petition2‐Aug BENOLD'S JEWELERS, LTD ck 24890 1,726 Post-Petition2‐Aug BENOLD'S JEWELERS, LTD ck 24891 746 Post-Petition2‐Aug BENOLD'S JEWELERS, LTD ck 24892 893 Post-Petition2‐Aug JR DUNN JEWELERS ck 57074 1,194 Post‐Petition2‐Aug RASMUSSEN DIAMONDS ck 23678 491 Post‐Petition2‐Aug RASMUSSEN DIAMONDS ck 23677 2,061 Post‐Petition2‐Aug WILLIAMS JEWELERS OF CHERRY CREEKck 036328 8,064 Post‐Petition2‐Aug RUMMELE'S JEWELERS ck 79761 284 Post‐Petition2‐Aug ROLLANDS JEWELERS ck 32914 1,729 Post‐Petition2‐Aug MEIEROTTO'S ck 29000 986 Post‐Petition2‐Aug JUHAS & SULLIVAN INC. ck 15679 3,693 Post‐Petition2‐Aug SIMPLY RADIANT american express 1,986 Post‐Petition3‐Aug MEDAWAR JEWELERS ck 2417 752 Post‐Petition3‐Aug H.E. MURDOCK CO.,INC. ck 141021 597 Post‐Petition3‐Aug SATHER'S LEADING JEWELERS,INC. ck 16037 1,278 Post‐Petition3‐Aug KARATS INC ck 4221 362 Post‐Petition3‐Aug JEWEL BOX MORGAN HILL,LP ck 7117 2,985 Post‐Petition3‐Aug The Diamond Galleria american exPRESS 1,917 Post‐Petition6‐Aug CIRELLI JEWELERS ck 45040 3,547 Post‐Petition6‐Aug JAMES AND SONS LTD.INC. ck 64569 894 Post‐Petition6‐Aug The Diamond Galleria ck 13055 441 Post‐Petition6‐Aug MOODY'S JEWELRY, INC/,MAJORS ck 76723 9,624 Post‐Petition6‐Aug J.KEITH'S JEWELERS ck 40215 761 Post‐Petition6‐Aug LEE READ JEWELERS/MAJORS ck 73926 4,460 Post‐Petition6‐Aug DIADENJ, INC. ck 29408 918 Post‐Petition6‐Aug BORSHEIM CO. ck 168407 1,070 Post‐Petition6‐Aug JOHANNES/HUNTER, INC. ck 47234 3,693 Post‐Petition6‐Aug JOHANNES/HUNTER, INC. ck 47235 970 Post‐Petition6‐Aug GOLDEN IMPRESSIONS ck 037170 990 Post‐Petition6‐Aug MINERS NORTH JEWELERS ck 051236 672 Post‐Petition6‐Aug SIEBKE HOYT,INC ck 130795 3,478 Post‐Petition6‐Aug BERE JEWELERS ck 25881 1,790 Post‐Petition6‐Aug D. GELLER & SONS ck 009254 365 Post‐Petition6‐Aug Quest Fine Jewelers ck 4417 5,080 Post‐Petition6‐Aug SARTOR‐HAMANN, INC. ck 5938 728 Post‐Petition6‐Aug MATHEU'S FINE WATCHES & JEWELRY ck 16651 2,995 Post‐Petition6‐Aug MOODY'S JEWELRY, INC/,MAJORS ck 76827 2,335 Post‐Petition6‐Aug ROBBINS BROS. JEWELRY INC. ck 732688 8,474 Post‐Petition6‐Aug MORGAN Jewelers/Majors ck 189677 1,060 Post‐Petition7‐Aug Gail Kenny Ck 7505 2,630 Post‐Petition7‐Aug Yonan's Jewelers Ck 1247 1,679 Post‐Petition7‐Aug MORGAN Jewelers/Majors ck 189509 2,940 Post‐Petition8‐Aug TAPPERS FINE JEWELRY WIRE 5,150 Post‐Petition

TOTAL 99,155

3‐Aug SACHS JEWELERY ck 15114 2,292 Pre‐Petition3‐Aug UNICORN JEWELERS, INC. American exPRESS 2,428 Pre‐Petition6‐Aug BERNIE ROBBINS ck 67983 6,062 Pre‐Petition6‐Aug MAX JEWELERS ck 4320 1,000 Pre‐Petition

TOTAL 11,782

Exhibit A-2: Jaffe A/R Deposits/Receipts

18 of 59


FFJ A/R CollectionsOriginal file Name: FFJ InfoSource: AnzhelaIssue: This is cash deposits on A/R, needs to tie out to Altamash GL bank account cash detail

Date Rec'd Customer ck # Curr. Amt Pre/Post Pet TOTAL

Pre Petition 3,520 Post Petition 7,528 Total cash 11,048 Other Credits -

Total A/R Receipts 11,048

Account Type Account No. Description Document Date Doc Type Document No. Amount Petition

Customer 4567 Menser & Company 8/2/2018 Payment 71556 1,620 post petitionCustomer 73714 REIS NICHOLS INC 8/3/2018 Payment 99442 3,025 post petitionCustomer 37812 Laskers, Inc 8/3/2018 Payment 68613 1,055 post petitionCustomer 76983‐P105 SIEBKE & HOYT INC ‐ P105 8/6/2018 Payment 130818 745 post petitionCustomer 83848 BBB 8/7/2018 Payment 219507164 1,083 post petition

TOTAL 7,528

Customer 74008 RICHARDSON JEWELERS 8/6/2018 Payment 29916 1,520 pre petitionCustomer 35555 JOSEPH HANNOUSH FAMILY INC 8/6/2018 Payment 996419 1,000 pre petitionCustomer 4571 B & B INVESTMENTS INC 8/6/2018 Payment 6378 1,000 pre petition

TOTAL 3,520

Exhibit A‐3: FFJ A/R Deposits/Receipts

19 of 59


AJaffee/FFJBankGLDetail‐August2018OriginalFileNames:BankGLDetails08.01.2018to08.08.2018and BankGLDetails08.09.2018to08.31.2018Source:AltamashDisbursementAccount#6873:08/01/2018to08/31/2018


Division Voucher Date Periodcode Amountcurrency Ledgeraccount Accountname Name Nature

OpeningBalance (141,991)$

TransfersIn 519,563 Other 6,826 Totalreceipts(incl.voidedchecks) 526,389$

Operations (381,437)$ EndingBalance 2,961$

BankTransfersJAFFE GJV‐308913 8/7/2018 Normal 214,995 101200 Disbursements InternalTransferJAFFE GJV‐308915 8/10/2018 Normal 200,000 101200 Disbursements InternalTransfer InternalTransferJAFFE GJV‐308914 8/8/2018 Normal 52,759 101200 Disbursements InternalTransferJAFFE GJV‐308912 8/3/2018 Normal 51,809 101200 Disbursements InternalTransfer

519,563$

BankTransfersJAFFE VP‐027438 8/15/2018 Normal 4,872 101200 Disbursements FEDERALEXPRESS Freight

JAFFE VCL‐000529 8/3/2018 Normal 1,534 101200 DisbursementsS.BICHACHIBLUMENFELDDIAMONDCO. Purchase

JAFFE VP‐027436 8/9/2018 Normal 108 101200 Disbursements FEDERALEXPRESS FreightJAFFE VCL‐000532 8/9/2018 Normal 100 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027437 8/14/2018 Normal 92 101200 Disbursements FEDERALEXPRESS FreightJAFFE VCL‐000530 8/9/2018 Normal 50 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VCL‐000531 8/9/2018 Normal 50 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027439 8/20/2018 Normal 20 101200 Disbursements FEDERALEXPRESS Freight

6,826$

OperationsJAFFE VP‐027372 8/20/2018 Normal (20) 101200 Disbursements FEDERALEXPRESS FreightJAFFE VP‐027424 8/20/2018 Normal (20) 101200 Disbursements FEDERALEXPRESS FreightJAFFE VP‐027294 8/9/2018 Normal (25) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027295 8/9/2018 Normal (25) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027300 8/9/2018 Normal (25) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027301 8/9/2018 Normal (25) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027307 8/9/2018 Normal (25) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027327 8/14/2018 Normal (25) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027341 8/14/2018 Normal (25) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027344 8/14/2018 Normal (25) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027348 8/14/2018 Normal (25) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027356 8/17/2018 Normal (25) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027360 8/17/2018 Normal (25) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027291 8/9/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027292 8/9/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027293 8/9/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027297 8/9/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027298 8/9/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027299 8/9/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027302 8/9/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027303 8/9/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027316 8/14/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027317 8/14/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027319 8/14/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027320 8/14/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027321 8/14/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027323 8/14/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027324 8/14/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027330 8/14/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027332 8/14/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027333 8/14/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027335 8/14/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027336 8/14/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027340 8/14/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027343 8/14/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027345 8/14/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027349 8/14/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027350 8/14/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027352 8/14/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027354 8/17/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027355 8/17/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027359 8/17/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027363 8/17/2018 Normal (50) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027314 8/14/2018 Normal (74) 101200 Disbursements FIDELITY(FIIOC) 401kJAFFE VP‐027325 8/14/2018 Normal (75) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027370 8/14/2018 Normal (92) 101200 Disbursements FEDERALEXPRESS FreightJAFFE VP‐027422 8/14/2018 Normal (92) 101200 Disbursements FEDERALEXPRESS FreightJAFFE VP‐027384 8/7/2018 Normal (100) 101200 Disbursements ROSATORIBIO TravelJAFFE VP‐027296 8/9/2018 Normal (100) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027304 8/9/2018 Normal (100) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027306 8/9/2018 Normal (100) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027308 8/9/2018 Normal (100) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027329 8/14/2018 Normal (100) 101200 Disbursements Spiffingvendor SalesPromotion

ExhibitA‐4;DisbursementAccount‐6873

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JAFFE VP‐027334 8/14/2018 Normal (100) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027338 8/14/2018 Normal (100) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027342 8/14/2018 Normal (100) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027346 8/14/2018 Normal (100) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027351 8/14/2018 Normal (100) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027353 8/14/2018 Normal (100) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027358 8/17/2018 Normal (100) 101200 Disbursements Spiffingvendor SalesPromotionFFJ 2506 8/1/2018 Normal (106) 101200 Disbursements AMIRMALIK TravelJAFFE VP‐027369 8/9/2018 Normal (108) 101200 Disbursements FEDERALEXPRESS FreightJAFFE VP‐027420 8/9/2018 Normal (108) 101200 Disbursements FEDERALEXPRESS FreightJAFFE VP‐027282 8/6/2018 Normal (109) 101200 Disbursements BANKIMMEHTA TravelJAFFE VP‐027326 8/14/2018 Normal (125) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027361 8/17/2018 Normal (125) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027362 8/17/2018 Normal (125) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027312 8/14/2018 Normal (140) 101200 Disbursements ADP,LLC ProfessionalFeesJAFFE VP‐027247 8/1/2018 Normal (150) 101200 Disbursements ISAACSANDBERG OfficeExpenseJAFFE VP‐027289 8/9/2018 Normal (150) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027305 8/9/2018 Normal (150) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027337 8/14/2018 Normal (150) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027339 8/14/2018 Normal (150) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027347 8/14/2018 Normal (150) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027357 8/17/2018 Normal (150) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027281 8/6/2018 Normal (164) 101200 Disbursements SUMAYBHANSALI TravelJAFFE VP‐027331 8/14/2018 Normal (175) 101200 Disbursements Spiffingvendor SalesPromotion

JAFFE VP‐027391 8/22/2018 Normal (191) 101200 DisbursementsBKJEWELERYCONTRACTORS,INC. Purchase

JAFFE VP‐027290 8/9/2018 Normal (200) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027318 8/14/2018 Normal (200) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027322 8/14/2018 Normal (200) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027328 8/14/2018 Normal (200) 101200 Disbursements Spiffingvendor SalesPromotionJAFFE VP‐027383 8/7/2018 Normal (204) 101200 Disbursements KAUSHALJHAVERI TravelJAFFE GJV‐308918 8/1/2018 Normal (223) 101200 Disbursements MerchantFeesJAFFE VP‐027367 8/3/2018 Normal (226) 101200 Disbursements FEDERALEXPRESS FreightFFJ 2507 8/1/2018 Normal (230) 101200 Disbursements EULERHERMES InsuranceJAFFE VP‐027387 8/8/2018 Normal (272) 101200 Disbursements KATELYNLEA TravelFFJ 2505 8/1/2018 Normal (276) 101200 Disbursements MALCA‐AMITCHB,INC Duty

JAFFE VP‐027390 8/22/2018 Normal (305) 101200 DisbursementsA.S.FINEDIAMONDSETTING,INC. Purchase


JAFFE VP‐027245 8/1/2018 Normal (383) 101200 Disbursements SELECTDIAMINC. Purchase

JAFFE VP‐027392 8/22/2018 Normal (388) 101200 DisbursementsSUNSHINEDIAMONDCUTTERINC. Purchase


JAFFE VP‐027385 8/8/2018 Normal (413) 101200 Disbursements ERINMULLIGAN TravelJAFFE VP‐027427 8/30/2018 Normal (428) 101200 Disbursements FEDERALEXPRESS FreightJAFFE GJV‐308960 8/29/2018 Normal (500) 101200 Disbursements WebsiteJAFFE VP‐027377 8/6/2018 Normal (507) 101200 Disbursements ASHLEYCOAKLEY Travel


JAFFE VP‐027244 8/1/2018 Normal (520) 101200 Disbursements A&WGEMS,INC PurchaseFFJ CHECK2514 8/13/2018 Normal (579) 101200 Disbursements MALCA‐AMITUSA,LLC DutyFFJ 2513 8/7/2018 Normal (633) 101200 Disbursements RAMJEWELRY,INC PurchaseJAFFE VP‐027313 8/14/2018 Normal (658) 101200 Disbursements AVALARA,INC. MapTaxJAFFE VP‐027243 8/1/2018 Normal (679) 101200 Disbursements ARISEPRECIOUSGEMS PurchaseJAFFE VP‐027273 8/3/2018 Normal (705) 101200 Disbursements NDCHANNELCORP PurchaseJAFFE VP‐027252 8/1/2018 Normal (734) 101200 Disbursements SAMUELSANDBERG TravelJAFFE VP‐027393 8/22/2018 Normal (749) 101200 Disbursements XOMOXJEWELRYINC PurchaseFFJ 2509 8/6/2018 Normal (832) 101200 Disbursements JEWELEXNEWYORK,LTD PurchaseJAFFE VP‐027382 8/7/2018 Normal (841) 101200 Disbursements KATELYNLEA TravelJAFFE VP‐027285 8/7/2018 Normal (871) 101200 Disbursements GUILDANDFACETS Purchase


FFJ CHECK2515 8/13/2018 Normal (979) 101200 Disbursements TSGREPORTING,INC LegalFeesJAFFE GJV‐308959 8/24/2018 Normal (1,046) 101200 Disbursements PhoneJAFFE VP‐027395 8/28/2018 Normal (1,130) 101200 Disbursements JOSELYNNAVES MarketingFFJ 2511 8/7/2018 Normal (1,145) 101200 Disbursements CoreJewelry PurchaseJAFFE VP‐027380 8/6/2018 Normal (1,180) 101200 Disbursements MELLANIEMCELEARNEY TravelJAFFE VP‐027315 8/14/2018 Normal (1,224) 101200 Disbursements JOHNC.NORDTCO. PurchaseJAFFE VP‐027379 8/6/2018 Normal (1,242) 101200 Disbursements GAILKENNY TravelJAFFE VP‐027381 8/7/2018 Normal (1,249) 101200 Disbursements GAILKENNY TravelFFJ 2512 8/7/2018 Normal (1,314) 101200 Disbursements H&IMOUNTINGINC. PurchaseFFJ CONCUR 8/1/2018 Normal (1,346) 101200 Disbursements NIKHILMANJREKAR Travel

JAFFE VP‐027276 8/3/2018 Normal (1,534) 101200 DisbursementsS.BICHACHIBLUMENFELDDIAMONDCO. Purchase

JAFFE VP‐027426 8/29/2018 Normal (1,771) 101200 Disbursements FEDERALEXPRESS FreightJAFFE VP‐027378 8/6/2018 Normal (1,779) 101200 Disbursements ERINMULLIGAN TravelJAFFE VP‐027376 8/6/2018 Normal (2,207) 101200 Disbursements ANGELIQUECROWN TravelJAFFE VP‐027279 8/6/2018 Normal (2,373) 101200 Disbursements JOSELYNNAVES MarketingFFJ 2504 8/1/2018 Normal (2,374) 101200 Disbursements JEWELEXNEWYORK,LTD PurchaseJAFFE VP‐027368 8/8/2018 Normal (2,695) 101200 Disbursements FEDERALEXPRESS FreightJAFFE VP‐027284 8/7/2018 Normal (3,000) 101200 Disbursements MARKSPANETHLLP LegalFeesJAFFE VP‐027366 8/1/2018 Normal (3,024) 101200 Disbursements FEDERALEXPRESS Freight

21 of 59






FFJ 2510 8/7/2018 Normal (3,219) 101200 Disbursements JEWELEXNEWYORK,LTD PurchaseJAFFE GJV‐308917 8/3/2018 Normal (4,000) 101200 Disbursements SoftwareDevelopers WebsiteJAFFE VP‐027425 8/22/2018 Normal (4,111) 101200 Disbursements FEDERALEXPRESS FreightJAFFE VP‐027375 8/1/2018 Normal (4,564) 101200 Disbursements MELLANIEMCELEARNEY TravelJAFFE VP‐027428 8/15/2018 Normal (4,591) 101200 Disbursements DARSHNARANA SuppliesJAFFE VP‐027371 8/15/2018 Normal (4,872) 101200 Disbursements FEDERALEXPRESS FreightJAFFE VP‐027423 8/15/2018 Normal (4,872) 101200 Disbursements FEDERALEXPRESS FreightJAFFE VP‐027272 8/3/2018 Normal (5,000) 101200 Disbursements LEBRAIN PRConsultantJAFFE VP‐027309 8/13/2018 Normal (5,000) 101200 Disbursements GTGJEWELRY CommissionJAFFE VP‐027274 8/3/2018 Normal (5,707) 101200 Disbursements PACIFICNORTHERN,INC. SuppliesJAFFE VP‐027374 8/1/2018 Normal (5,876) 101200 Disbursements GAILKENNY TravelJAFFE VP‐027394 8/28/2018 Normal (5,939) 101200 Disbursements USTRUSTEE LegalFees

FFJ CHECK2516 8/13/2018 Normal (6,217) 101200 DisbursementsPACIFICLEASEHOLDCOMPANY,LLC RoyaltyExpense

JAFFE VP‐027373 8/1/2018 Normal (6,294) 101200 Disbursements DARSHNARANA SuppliesJAFFE VP‐027310 8/13/2018 Normal (7,000) 101200 Disbursements 21CJEWELRYSOLUTIONS ProfessionalFeesJAFFE VP‐027386 8/8/2018 Normal (9,311) 101200 Disbursements DARSHNARANA SuppliesFFJ 2499 8/1/2018 Normal (10,833) 101200 Disbursements TEDVASTINE CommissionJAFFE VP‐027275 8/3/2018 Normal (11,251) 101200 Disbursements XOMOXJEWELRYINC PurchaseJAFFE VP‐027245 8/1/2018 Normal (12,176) 101200 Disbursements SELECTDIAMINC. PurchaseJAFFE VP‐027311 8/13/2018 Normal (12,219) 101200 Disbursements XOMOXJEWELRYINC PurchaseJAFFE VP‐027364 8/17/2018 Normal (16,805) 101200 Disbursements ROBBINSBROTHERS RoyaltyExpenseJAFFE VP‐027283 8/7/2018 Normal (17,101) 101200 Disbursements JEWELEXNEWYORK,LTD PurchaseJAFFE VP‐027280 8/6/2018 Normal (28,830) 101200 Disbursements JEWELEXNEWYORK,LTD PurchaseJAFFE VP‐027277 8/3/2018 Normal (131,897) 101200 Disbursements FIRESTARDIAMONDINC AllocatedOverheads

(381,437)$

22 of 59


AJaffee/FFJBankGLDetail‐July2018OriginalFileNames:BankGLDetails08.01.2018to08.08.2018and BankGLDetails08.09.2018to08.31.2018Source:AltamashPayrollAccount#2486:08/01/2018to08/31/2018


Division Voucher Date Amountcurrency Ledgeraccount Accountname Name Nature

OpeningBalance 1,129,106$

Revenue‐Saleofinventory 594,900AssetSale‐Paramount 3,133,189

TotalCashReceipts 3,728,089

BankTransfers (920,000)EndingBalance 3,937,195$

Revenue‐SaleofInventoryJAFFE CP‐024609 8/2/2018 300 101300 Payroll AMIPI,INCAUCTION#3Revenue

JAFFE CP‐024610 8/2/2018 594,600 101300 PayrollDiamondTradersIntl,IncAuction#2 Revenue

594,900$

AssetSale

JAFFE GJV‐308966 8/9/2018 3,133,189 101300 Payroll PARAMOUNTJEWELSIncomefromSalesofAR/Inventory

3,133,189$

BanktoBankTransfersJAFFE GJV‐308911 8/3/2018 (300,000) 101300 Payroll InternalTransferJAFFE GJV‐308915 8/10/2018 (200,000) 101300 Payroll InternalTransferJAFFE GJV‐308941 8/13/2018 (120,000) 101300 Payroll InternalTransferJAFFE GJV‐308943 8/23/2018 (100,000) 101300 Payroll InternalTransferJAFFE GJV‐308944 8/28/2018 (100,000) 101300 Payroll InternalTransferJAFFE GJV‐308945 8/29/2018 (100,000) 101300 Payroll InternalTransfer

(920,000)$

ExhibitA‐5;PayrollAccount‐2486

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EXHIBIT B - P/L

24 of 59


A.JAFFE,INC incl FFJIncome Statement For the Period (2/26/18 - 8/31/18)

2/26/18 - 3/31/18

4/1/18 - 4/30/18

5/1/18 - 5/31/18

6/1/18 - 6/30/18

7/1/18 - 7/31/18

8/1/18 - 8/31/18 Comb per Co.

SALES a b c d e fSales - Total 233,605 792,660 810,689 693,601 2,152,344 (25,378) 4,657,521 Net Shipping Income 4,984 8,514 11,700 8,577 9,288 910 43,973

238,589 801,174 822,389 702,178 2,161,632 (24,468) 4,701,494

COST OF GOODS SOLD 159,044 414,880 497,437 367,762 1,409,773 (1,855) 2,847,042 469,668 36,255 505,923

GROSS PROFIT 79,545 386,294 324,952 334,416 751,859 (22,614) 1,854,452 33% 48% 40% 48% 35% 92% 39%

OTHER DILUTION ITEMSSales Discounts & Allowances (21,354) 15,630 28,782 22,784 561,146 1,290 608,277 Co-Op with New Campaign/Key Retailers Suppo 32,138 7,427 - - 698 18,486 58,749 Bad Debt Allowance (29,418) 6,365 7,260 - - - (15,793) Spiffing Incentives 39,365 42,279 21,640 16,364 81,460 31,724 232,832 Design Cost 5,615 8,690 47,310 - (22,115) - 39,500

- - Total Other Dilution Items 26,345 80,391 104,992 39,148 621,189 51,500 923,565

GROSS PROFIT AFTER DILUTION ITEMS 53,199 305,904 219,960 295,268 130,670 (74,114) 930,887

Dilution loss on Silver items - - - - - - Royalty Expense (Fantasy/Bondanza) - - - - - 16,805 16,805 DAR Melt Recovery - (1,866) (1,866)

- REVISED GROSS PROFIT 53,199 305,904 219,960 295,268 130,670 (89,052) 915,948

SELLING EXPENSES

In Store Brand Audit 8,361 426 2,119 129 15,425 16,591 43,051 Marketing Collateral 2,275 3,392 - 3,000 - - 8,667 National Advertising - TV/Print 7,911 1,912 700 1,000 1,543 - 13,066 Training - - - - - - - Creative Write-Off 3,670 7,750 2,500 3,500 3,100 - 20,520 Digital & Online Marketing 3,302 4,773 4,339 1,630 8,736 1,130 23,910 IT & Web Portal 6,650 - 2,000 4,368 500 - 13,518 Website - New - 23,705 12,170 20,481 7,630 4,000 67,986 PR - New - - - 7,500 - - 7,500 Credit Expense (JBT Dues) - - - - - - -

Travel - Fare (39,177) 6,420 30,869 8,229 6,785 9,626 22,752 Travel, Meals Etc. - Others 4,267 5,271 19,241

casedocs.omniagentsolutions.com...in re old aj, inc. f/k/a a. jaffe, inc. case no.18-10510 (shl)...

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