Monthly Operating Report Chapter 11

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UST Form 11-MOR (06/07/2021) 1

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In Re. SECURE HOME HOLDINGS LLC

Debtor(s)

§

Case No. 21-10745 Lead Case No. 21-10745

Jointly Administered

Monthly Operating Report

^{Chapter 11}

Reporting Period Ended: 06/11/2021 Petition Date: 04/25/2021

Months Pending: 2 Industry Classification: 7 3 8 2

Reporting Method: Accrual Basis Cash Basis

Debtor's Full-Time Employees (current): 454

Debtor's Full-Time Employees (as of date of order for relief): 472

Supporting Documentation

(check all that are attached):

(For jointly administered debtors, any required schedules must be provided on a non-consolidated basis for each debtor)

Statement of cash receipts and disbursements

Balance sheet containing the summary and detail of the assets, liabilities and equity (net worth) or deficit Statement of operations (profit or loss statement)

Accounts receivable aging Postpetition liabilities aging Statement of capital assets

Schedule of payments to professionals Schedule of payments to insiders

All bank statements and bank reconciliations for the reporting period

Description of the assets sold or transferred and the terms of the sale or transfer

Signature of Responsible Party Printed Name of Responsible Party

Date

Address /s/ Evan Flamm

07/29/2021

Evan Flamm

3803 West Chester Pike, Suite 100 Newtown Square, PA 19073

STATEMENT: This Periodic Report is associated with an open bankruptcy case; therefore, Paperwork Reduction Act exemption 5 C.F.R.

§ 1320.4(a)(2) applies.

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2110746210806000000000001

Docket #0010 Date Filed: 08/06/2021

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UST Form 11-MOR (06/07/2021) 2

Debtor's Name SECURE HOME HOLDINGS LLC Case No. 21-10745

Part 1: Cash Receipts and Disbursements Current Month Cumulative

a. Cash balance beginning of month $12,869,966

b. Total receipts (net of transfers between accounts) $4,430,596 $12,857,801

c. Total disbursements (net of transfers between accounts) $4,135,545 $10,036,099

d. Cash balance end of month (a+b-c) $13,165,017

e. Disbursements made by third party for the benefit of the estate $0 $0

f. Total disbursements for quarterly fee calculation (c+e) $4,135,545 $10,036,099

Part 2: Asset and Liability Status Current Month

(Not generally applicable to Individual Debtors. See Instructions.)

a. Accounts receivable (total net of allowance) $2,276,397

b. Accounts receivable over 90 days outstanding (net of allowance) $-54,107

c. Inventory (Book Market Other (attach explanation)) $1,438,138

d Total current assets $18,375,771

e. Total assets $122,628,267

f. Postpetition payables (excluding taxes) $26,329,910

g. Postpetition payables past due (excluding taxes) $0

h. Postpetition taxes payable $0

i. Postpetition taxes past due $0

j. Total postpetition debt (f+h) $26,329,910

k. Prepetition secured debt $229,865,087

l. Prepetition priority debt $0

m. Prepetition unsecured debt $6,813,900

n. Total liabilities (debt) (j+k+l+m) $263,008,897

o. Ending equity/net worth (e-n) $-140,380,630

Part 3: Assets Sold or Transferred Current Month Cumulative

a. Total cash sales price for assets sold/transferred outside the ordinary

course of business $0 $0

b. Total payments to third parties incident to assets being sold/transferred

outside the ordinary course of business $0 $0

c. Net cash proceeds from assets sold/transferred outside the ordinary

course of business (a-b) $0 $0

Part 4: Income Statement (Statement of Operations) Current Month Cumulative (Not generally applicable to Individual Debtors. See Instructions.)

a. Gross income/sales (net of returns and allowances) $7,253,077

b. Cost of goods sold (inclusive of depreciation, if applicable) $986,939

c. Gross profit (a-b) $6,266,138

d. Selling expenses $0

e. General and administrative expenses $5,661,511

f. Other expenses $-3,673,583

g. Depreciation and/or amortization (not included in 4b) $1,688,723

h. Interest $44,515

i. Taxes (local, state, and federal) $15,485

j. Reorganization items $6,477,971

k. Profit (loss) $-3,948,484 $-2,324,851

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UST Form 11-MOR (06/07/2021) 3

Part 5: Professional Fees and Expenses

Approved

Current Month

Approved Cumulative

Paid Current Month

Paid Cumulative a. Debtor's professional fees & expenses (bankruptcy) Aggregate Total

Itemized Breakdown by Firm

Firm Name Role

i ii

Approved

Current Month

Approved Cumulative

Paid Current Month

Paid Cumulative b. Debtor's professional fees & expenses (nonbankruptcy) Aggregate Total

Itemized Breakdown by Firm

Firm Name Role

i ii

c. All professional fees and expenses (debtor & committees)

Part 6: Postpetition Taxes Current Month Cumulative

a. Postpetition income taxes accrued (local, state, and federal) $0 $0

b. Postpetition income taxes paid (local, state, and federal) $0 $0

c. Postpetition employer payroll taxes accrued $0 $0

d. Postpetition employer payroll taxes paid $0 $0

e. Postpetition property taxes paid $2,055 $15,184

f. Postpetition other taxes accrued (local, state, and federal) $260,330 $659,016

g. Postpetition other taxes paid (local, state, and federal) $2,135 $2,135

Part 7: Questionnaire - During this reporting period:

a. Were any payments made on prepetition debt? (if yes, see Instructions) Yes No b. Were any payments made outside the ordinary course of business Yes No

without court approval? (if yes, see Instructions)

c. Were any payments made to or on behalf of insiders? Yes No

d. Are you current on postpetition tax return filings? Yes No

e. Are you current on postpetition estimated tax payments? Yes No f. Were all trust fund taxes remitted on a current basis? Yes No g. Was there any postpetition borrowing, other than trade credit? Yes No

(if yes, see Instructions)

h. Were all payments made to or on behalf of professionals approved by the court?

Yes No N/A

i. Do you have: Worker's compensation insurance? Yes No

If yes, are your premiums current? Yes No N/A (if no, see Instructions)

Casualty/property insurance? Yes No

If yes, are your premiums current? Yes No N/A (if no, see Instructions)

General liability insurance? Yes No

If yes, are your premiums current? Yes No N/A (if no, see Instructions) j. Has a plan of reorganization been filed with the court? Yes No

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UST Form 11-MOR (06/07/2021) 4

k. Has a disclosure statement been filed with the court? Yes No l. Are you current with quarterly U.S. Trustee fees as

set forth under 28 U.S.C. § 1930?

Yes No

Part 8: Individual Chapter 11 Debtors (Only)

a. Gross income (receipts) from salary and wages $0

b. Gross income (receipts) from self-employment $0

c. Gross income from all other sources $0

d. Total income in the reporting period (a+b+c) $0

e. Payroll deductions $0

f. Self-employment related expenses $0

g. Living expenses $0

h. All other expenses $0

i. Total expenses in the reporting period (e+f+g+h) $0

j. Difference between total income and total expenses (d-i) $0

k. List the total amount of all postpetition debts that are past due $0 l. Are you required to pay any Domestic Support Obligations as defined by 11

U.S.C § 101(14A)?

Yes No

m. If yes, have you made all Domestic Support Obligation payments? Yes No N/A

Privacy Act Statement

28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C.

§§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor's progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee's or examiner's duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee's systems of records notice, UST-001, "Bankruptcy Case Files and Associated Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http://

www.justice.gov/ust/eo/rules_regulations/index.htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F).

I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate.

/s/ Evan Flamm

Signature of Responsible Party

CFO

Printed Name of Responsible Party

07/29/2021

Date Title

Evan Flamm

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SECURE HOME HOLDINGS LLC, et al.;

Case No. 21-10745 (JKS)

MOR-1 Reporting Period: June 1, 2021 to June 11, 2021

BUSINESS DEBTORS' CONSOLIDATED CASH RECEIPTS & DISBURSEMENTS⁽¹⁾

Cash Receipts

Customer Collections $ 4,431

Total Cash Receipts $ 4,431

Operating Disbursements

Payables / COGS $ (379)

Corporate G&A / Overhead (1,228)

Payroll and Benefits (923)

Sales Taxes -

Cash Disbursements from Operations $ (2,530)

Net Operating Cash Flow $ 1,901

Restructuring Cash Flow

Professional Fees - Lender $ (1,972)

Other Chapter 11 Related Expenses (533)

Total Restructuring Cash Flow $ (2,505)

Financing Cash Flow

DIP Facility $ -

DIP Interest and Fees (23)

Total Financing Cash Flow $ (23)

Total Net Cash Flow $ (628)

Beginning Book Cash $ 12,870

Plus: Change in Cash (628)

Ending Book Cash $ 12,242

Plus: Outstanding Checks 740

Plus: ACA Security Systems LP Bank Cash⁽²⁾ 42

Plus: Utility Deposit Account 50

Ending Bank Cash $ 13,075

Note: Total Disbursements $ (5,035)

Memo:

Ending Book Cash $ 12,242

Plus: ACA Security Systems LP Bank Cash⁽²⁾ 42

Less: ACA Security Systems LP Outstanding Checks (10)

Plus: Utility Deposit Account 50

Cash and Equivalents (Balance Sheet as of June 11, 2021) $ 12,325

(1) Cash Receipts include all inflows and outflows for My Alarm Center LLC bank accounts. ACA Security Systems LP inflows funded by My Alarm Center LLC accounts.

(2) ACA Security Systems LP bank account (x4791) used primarily for payroll passthrough and urgent West Coast checks (primarily payroll) UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

For the period of June 1, 2021 to June 11, 2021 (000's)

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Case No. 21-10745 (JKS)

MOR-1 (cont.) Reporting Period: June 1, 2021 to June 11, 2021

BUSINESS DEBTORS' ACTUAL DISBURSEMENTS

Disbursements 6/1/21 to 6/11/21

Secure Home Holdings LLC 21-10745 $ (4,136)

ACA Security Systems GP, LLC 21-10747 -

ACA Security Systems LP 21-10746 (327)

Hawk Creation, LLC 21-10748 -

My Alarm Center, LLC 21-10749 (596)

Total $ (5,058)

Note:

Disbursements exclude intra-entity transfers and transfers between Debtor entities

UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE

For the period of June 1, 2021 to June 11, 2021 (000's)

Debtor Case Number

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SECURE HOME HOLDINGS LLC, et al.; Case No. 21-10745 (JKS)

Debtor Reporting Period: 6/1/21 - 6/11/21

MOR-1a Bank Reconciliation

Signature of Authorized Individual Date

Evan Flamm Chief Financial Officer

Printed Name of Authorized Individual Title of Authorized Individual

As of June 2021

The Debtors hereby submit this attestation in lieu of providing copies of bank statements, bank reconciliations, and cash disbursement journals.

Attached to MOR-1a is a listing of all Debtor bank accounts, by account number, with period ending book balances. The Debtors affirm these accounts are reconciled monthly in accordance with the Debtors' ordinary course accounting practices and are available to the United States Trustee upon request.

Further, the Debtors affirm that cash bank statements and cash disbursement journals are maintained in accordance with the Debtors' ordinary course accounting practices and are available to the United States Trustee upon request.

FORM Bank Account Declaration PAGE 3 OF 9

7/28/2021

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Case No. 21-10745 (JKS)

MOR-1a Reporting Period: June 1, 2021 to June 11, 2021

BUSINESS DEBTORS' BANK ACCOUNTS

Company Financial Institution Last 4 Digits

Account Number Account Description Account Balance

ACA Security Systems Bank of America 4791 Concentration & Payroll $ 42

My Alarm Center LLC Bank of America 6040 ACH Incoming -

My Alarm Center LLC Bank of America 6026 ACH Main Account -

My Alarm Center LLC Bank of America 6021 Credit Cards Incoming -

My Alarm Center LLC Bank of America 6007 Disbursements -

My Alarm Center LLC Bank of America 6002 Payroll -

My Alarm Center LLC Bank of America 5999 Concentration Account 8,476

My Alarm Center LLC Bank of America 8594 Dormant Account #1 -

My Alarm Center LLC Bank of America 1749 Dormant Account #2 -

Secure Home Holdings LLC Signature Bank 7787 Dormant Account -

Secure Home Holdings LLC Signature Bank 0583 Utility Deposit Account 50

4,506

Total $ 13,075

As of June 2021 (000's)

AMOUNTS IN ESCROW / TRUST ACCOUNTS

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Case No. 21-10745 (JKS)

MOR-1b Reporting Period: June 1, 2021 to June 11, 2021

DEBTORS' PROFESSIONALS DISBURSEMENTS

Amount Paid 6/1 - 6/11 Case-To-Date

Payee Role in the case Fees Expenses Fees Expenses

Raymond James Investment Bank $ - $ - $ - $ -

M3 Advisory Partners Financial Advisor - - - -

Chipman Brown Cicero & Cole Debtors' Local Counsel - - - -

Skadden, Arps, Slate, Meagher & Flom Debtors' Counsel - - - -

Total $ - $ - $ - $ -

For the period of June 1, 2021 to June 11, 2021

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Case No. 21-10745 (JKS)

Debtors' Statement of Operations⁽¹⁾

Secure Home Holdings LLC

ACA Security Systems GP, LLC

ACA Security Systems LP⁽²⁾

Hawk Creation, LLC

My Alarm

Center, LLC⁽²⁾ Total

Net Sales $ 7,253 $ - $ - $ - $ - $ 7,253

Cost of Revenues 987 - 845 - 434 2,266

Gross Profit $ 6,266 $ - $ (845) $ - $ (434) $ 4,987

Selling, General, and Administrative Expenses 5,662 - 201 - 998 6,861

Other Expenses/(Income) 0 - - - - 0

Operating Income (Loss) $ 604 $ - $ (1,046) $ - $ (1,432) $ (1,874)

Interest Expense 45 - - - - 45

Other Non-Recurring (3,674) (3,674)

Reorganization Items, net⁽³⁾ 6,478 - - - - 6,478

Income (Loss) before Income Taxes $ (2,244) $ - $ (1,046) $ - $ (1,432) $ (4,723)

Income Tax Expense (Benefit) 15 - - - - 15

Net Income (Loss) $ (2,260) $ - $ (1,046) $ - $ (1,432) $ (4,738)

(1) Figures are based on unaudited financials for partial month June 2021 through the 11th.

(2) Sales and Other Taxes are reported by Secure Home Holdings, primarily at legal entities ACA Security Systems LP and My Alarm Center LLC and are often determined by cash collections.

Revenue is a GAAP measurement and is reported as the parent entity of Secure Home Holdings.

(3) Reorganization items include all professional fee payable amounts as listed on MOR-4: Summary of Unpaid Postpetition Debts UNITED STATES BANKRUPTCY COURT

June 1, 2021 to June 11, 2021 (000's)

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SECURE HOME HOLDINGS LLC, et al.; 0

Case No. 21-10745 (JKS)

DEBTORS' BALANCE SHEET

Secure Home Holdings LLC

ACA Security Systems GP, LLC

ACA Security Systems LP⁽¹⁾

Hawk Creation, LLC

My Alarm

Center, LLC⁽¹⁾ Total ASSETS

Current Assets 0

Cash and Cash Equivalents $ 12,325 $ - $ - $ - $ - $ 12,325

Accounts Receivable, net⁽²⁾ 2,276 - - - - 2,276

Inventories, net 1,438 - - - - 1,438

Other Current Assets 2,336 - - - - 2,336

Total Current Assets $ 18,376 $ - $ - $ - $ - $ 18,376

Property, Plant and Equipment, net $ 1,644 $ - $ - $ - $ - $ 1,644

Goodwill and Intangible Assets, net (0) - - - - (0)

Alarm Contracts, net 88,741 - - - - 88,741

Tradename, net 11,938 - - - - 11,938

Other Non-Current Assets 1,930 - - - - 1,930

Total Assets $ 122,628 $ - $ - $ - $ - $ 122,628

LIABILITIES AND STOCKHOLDER'S DEFICIT Current Liabilities

Accounts Payable and Accrued Expenses⁽³⁾ $ 16,330 $ - $ 919 $ - $ 1,258 $ 18,506

Other Current Liabilities⁽⁴⁾ - - (3) - 261 258

Intercompany Liabilities 2,434 (916) (1,519) -

Total Current Liabilities $ 18,764 $ - $ - $ - $ - $ 18,764

DIP Facility $ 10,000 $ - $ - $ - $ - $ 10,000

Deferred Revenue⁽²⁾ 15,200 - - - - 15,200

Other Non-Current Liabilities⁽⁵⁾ (806) - - - - (806)

Total Liabilities Not Subject to Compromise $ 24,394 $ - $ - $ - $ - $ 24,394

Liabilities Subject to Compromise 233,623 - - - - 233,623

Total Liabilities $ 276,782 $ - $ - $ - $ - $ 276,782

Stockholder's Deficit

Common Stock $ 1,267 $ - $ - $ - $ - $ 1,267

Additional Paid-in Capital - - - - - -

Preferred Stock 103,940 - - - - 103,940

Accumulated Other Comprehensive Loss - - - - - -

Retained Deficit (259,360) - - - - (259,360)

Total Stockholder's Deficit $ (154,153) $ - $ - $ - $ - $ (154,153)

Total Liabilities and Stockholder's Deficit $ 122,628 $ - $ - $ - $ - $ 122,628

(1) Payroll and State Sales Tax liabilities are bifurcated between two operating entities underneath Secure Home Holdings LLC to the best approximation based on branch and state Accounting system activity.

(2) Although state sales taxes are paid through operating entities My Alarm Center LLC and ACA Security Systems LP, accounts receivable and deferred revenue are reported at the parent holding company Secure Home Holdings LLC for GAAP purposes.

(3) Accounts Payable and Accrued Expenses for Secure Home Holdings, LLC estimated based on post-petition amounts unpaid only from Form MOR-4, all other AP and Accrued Expenses as of June 11th captured under Liabilities Subject to Compromise.

(4) Represents both pre- and post-petition State Sales Tax liabilities and assumed not subject to compromise due to pass-through nature of liability to state revenue agencies.

(5) Represents non-cash liabilities related to deferred rent (does not represent full potential lease obligations owed) and a negative non-cash liability related to bank loan origination fees UNITED STATES BANKRUPTCY COURT

As of June 11, 2021 (000's)

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Case No. 21-10745 (JKS)

Summary of Unpaid Postpetition Professional Debts⁽¹⁾

0-30 Days 31-60 Days 61-90 Days Over 90 Days Total

Professional Fees Payable⁽²⁾ 4,506 - - - 4,506

BUSINESS DEBTORS' ACCOUNTS PAYABLE

Current 428

1 - 30 days old 1,119

31 - 60 days old 213

61 - 90 days old 52

91 - 120 days old 3

121 + days old 221

Total Accounts Payable $ 2,036

Credits (23)

Net Accounts Payable $ 2,013

Accrued Expenses 9,810

Reported Accounts Payable And Accrued Expenses, net $ 11,824

(1) Figures herein exclude post-petition debts related to payroll, short-term & long-term debt and lease obligations, sales taxes, accrued interest, and holdback obligations based on Dealer Agreement Claims.

(2) Professional fees payable include remaining second lien legal expenses allowable under the DIP Order, as well as Ropes & Gray LLP, Greenhill & Company LLC, Kurtzman Carson Consultants Inc, and other debtor advisory and legal professionals (M-III Partners LP, Skadden, Arps, Slate, Meagher & Flom LLP, and Chipman Brown Cicero & Cole LLP).

As of June 11, 2021 (000's)

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Case No. 21-10745 (JKS)

Reporting Period: June 1, 2021 to June 11, 2021 MOR-5a

BUSINESS DEBTORS' ACCOUNTS RECEIVABLE

Current 905

1 - 30 days old 883

31 - 60 days old 443

61 - 90 days old 223

91 - 120 days old 82

121 + days old 199

Inactive 148

Less: Unapplied Credits and Unearned Revenues (15,462) Total trade accounts receivable $ (12,579)

Less: Allowance for Bad Debts (483)

Less: Other Receivables (32)

Total accounts receivable, net $ (13,095)

Plus:: Unapplied Credits and Unearned Revenues 15,462

Reported Accounts Receivable $ 2,367

As of June 11, 2021 (000's)

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