
                                                                    EXHIBIT 99.2
                                                                    ------------

PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP
Jeffrey D. Saferstein (JS/5339)
Erica Weinberger (EW/1411)
1285 Avenue of the Americas
New York, New York 10019-6064
Telephone:  (212) 373-3000
Attorneys for Debtor in Possession

UNITED STATE BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
----------------------------------------x
                                        :     Chapter 11
In re:                                  :     Case No. 02-16213 (ALG)
                                        :
ACTRADE CAPITAL, INC.                   :
                                        :
                               Debtor.  :
                                        :
----------------------------------------x



                         MONTHLY OPERATING STATEMENT FOR
                    THE PERIOD JULY 1, 2003 TO JULY 31, 2003
                    ----------------------------------------



<PAGE>

UNITED STATE BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK

                                              CHAPTER 11 CASE NO. 02-16213 (ALG)


                              ACTRADE CAPITAL, INC.
--------------------------------------------------------------------------------
                                     DEBTOR

                         Monthly Operating Statement For
                    The Period July 1, 2003 to July 31, 2003


DEBTOR'S ADDRESS:
Actrade Capital, Inc.
200 Cottontail Lane
Vantage Court South
Somerset, NJ 08873

                                        Monthly Disbursements:     $    218,000
                                                                   ------------

Debtor's Attorney:
------------------
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, NY 10019

                                        Monthly After Tax Loss:    $    998,000
                                                                   ------------


         The undersigned, having reviewed the attached report and being familiar
with the Debtor's financial affairs, verifies under the penalty of perjury, that
to the best of my knowledge, information and belief, the information contained
therein accurately reflects, on an unconsolidated basis, information contained
in the Debtor's books and records and public filings. As stated in previous
disclosures, no assurances can be given and no reliance should be made, on the
Debtor's books and records, and on the information contained in the Debtor's
public filings.

         The undersigned also verifies that, to the best of his knowledge, all
insurance policies, including workers compensation and disability insurance,
have been paid currently.


DATE:  August 15, 2003                  By: /s/ Richard F. McCormick
                                            ----------------------------------
                                            Richard F. McCormick
                                            Vice President
                                            Actrade Capital, Inc.


Indicate if this is an amended statement by checking here

                                                     Amended Statement    [_]


<PAGE>

                              ACTRADE CAPITAL, INC.
                             (DEBTOR-IN-POSSESSION)
                                  BALANCE SHEET
                                  JULY 31, 2003
                             (DOLLARS IN THOUSANDS)


ASSETS

CURRENT ASSETS:
     Cash                                                              $ 17,987

     Other current assets                                                   595
                                                                       --------
         Total Current Assets                                            18,582


OTHER ASSETS                                                                 10
                                                                       --------

TOTAL ASSETS                                                           $ 18,592
                                                                       ========
LIABILITIES AND STOCKHOLDERS' DEFICIT

LIABILITIES NOT SUBJECT TO COMPROMISE:
CURRENT LIABILITIES:
     Accounts payable                                                  $  1,708
     Accrued expenses                                                       286
                                                                       --------
         Total Current Liabilities                                        1,994
                                                                       --------

DUE TO PARENT, SUBSIDIARIES AND AFFILIATES                               47,487

LIABILITIES SUBJECT TO COMPROMISE:
     Accounts payable                                                        54
     Accrued expenses                                                       285
                                                                       --------
         Total Current Liabilities Subject to Compromise                    339
                                                                       --------
   Total Liabilities                                                     49,820
                                                                       --------

STOCKHOLDERS' DEFICIT:
     Common stock                                                            --
     Additional paid in capital                                              10
     Accumulated deficit                                                (31,238)
                                                                       --------

         Total Stockholders' Deficit                                    (31,228)
                                                                       --------

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                            $ 18,592
                                                                       ========


                       See Notes to Financial Statements

                                       2
<PAGE>

                              ACTRADE CAPITAL, INC.
                             (DEBTOR-IN-POSSESSION)
                             STATEMENT OF OPERATIONS
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                       FOR THE PERIOD
                                                                                      DECEMBER 13, 2002
                                                                       MONTH ENDED         THROUGH
                                                                      JULY 31, 2003     JULY 31, 2003
                                                                      -------------     -------------
<S>                                                                   <C>               <C>
Revenue - Trade acceptance drafts                                     $          --     $       1,022

Other Income - Recovery of Bad Debt                                           1,683             1,683

Operating Expenses:
     General and administrative expenses                                        286             4,739
     Bad debt                                                                    --             1,849
     Interest expense                                                            --                10
                                                                      -------------     -------------
Total Operating Expenses                                                        286             6,598
                                                                      -------------     -------------

Income (Loss) before reorganization items and income tax benefit              1,397            (3,893)
                                                                      -------------     -------------

Reorganization items:
     Professional fees                                                         (620)           (4,230)
     Interest earned on accumulated cash resulting
       from Chapter 11 proceeding                                                 5                47
                                                                      -------------     -------------
                                                                               (615)           (4,183)
                                                                      -------------     -------------

Income (Loss) before (provision for income taxes) income tax benefit            782            (8,076)

Income tax benefit                                                              216            (2,590)
                                                                      -------------     -------------

Net Income (Loss)                                                     $         998     $     (10,666)
                                                                      =============     =============
</TABLE>


                       See Notes to Financial Statements

                                       3
<PAGE>

                              ACTRADE CAPITAL, INC.
                             (DEBTOR-IN-POSSESSION)
                             STATEMENT OF CASH FLOWS
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                        FOR THE PERIOD
                                                                                       DECEMBER 13, 2002
                                                                       MONTH ENDED         THROUGH
                                                                      JULY 31, 2003     JULY 31, 2003
                                                                      -------------     -------------
<S>                                                                   <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income (Loss)                                                   $         998     $     (10,666)
  Adjustments to reconcile net loss to net cash provided by
     operating activities:
       Depreciation and amortization                                             --               626
       Recovery of bad debt                                           $      (1,683)
       Bad debt                                                                  --             1,849
       Deferred income                                                           --              (224)
       Deferred income tax asset                                                170             9,120

Changes in operating assets and liabilities:
       Trade acceptance drafts receivable                                     1,683             8,031
       Other current assets                                                    (384)             (267)
       Other assets                                                              (1)               (1)
       Accounts payable                                                         612             1,708
       Accrued expenses                                                          58             1,908
       Due to parent, subsidiaries and affiliates                               (88)           (1,578)
       Income taxes payable                                                      --            (6,270)
                                                                      -------------     -------------

Net cash provided by operating activities before
   Reorganization Items                                                       1,365             4,236

Operating Cash Flow From Reorganization Items -
   Bankruptcy related professional fees paid                                    (97)           (2,059)
                                                                      -------------     -------------

Net cash provided by (used in) operating activities                           1,268             2,177
                                                                      -------------     -------------

Net increase (decrease) in cash during the period                             1,268               494

Cash balance at beginning of period                                          16,719            17,493
                                                                      -------------     -------------

Cash balance at end of period                                         $      17,987     $      17,987
                                                                      =============     =============
</TABLE>


                       See Notes to Financial Statements

                                       4
<PAGE>

                              ACTRADE CAPITAL, INC.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                                  JULY 31, 2003
                             (DOLLARS IN THOUSANDS)

NOTE 1.  BASIS OF PRESENTATION

The accompanying unaudited financial statements of Actrade Capital, Inc. have
been prepared on a going concern basis, which contemplates continuity of
operations, realization of assets and liquidation of liabilities in the ordinary
course of business. These financial statements include intercompany balances
that would be eliminated, in accordance with generally accepted accounting
principles, when the results of Actrade Capital, Inc. are consolidated with its
parent and all of its wholly owned subsidiaries or affiliates.

NOTE 2.  SIGNIFICANT ACCOUNTING POLICIES

Financial Reporting For Bankruptcy Proceedings - In connection with the
bankruptcy proceedings, the Company is required to report in accordance with the
American Institute of Certified Public Accountant's Statement of Position 90-7
"Financial Reporting by Entities in Reorganizations under the Bankruptcy Code"
(SOP 90-7"). SOP 90-7 requires, among other things, (i) that pre-petition
liabilities that are subject to compromise be segregated in the Company's
balance sheet as liabilities subject to compromise and (ii) the identification
of all transactions and events that are directly associated with the
reorganization of the Company in Statement of Operations.

NOTE 3.  PETITION FOR RELIEF UNDER CHAPTER 11

On December 12, 2002, Actrade Capital, Inc. (the "Debtor"), filed a petition for
relief under Chapter 11 of the United States Bankruptcy Code in the United
States Bankruptcy Court for the Southern District of New York. Under Chapter 11,
actions to enforce certain claims against the Debtor in existence prior to the
filing of the Chapter 11 petition are stayed while the Debtor continues business
operations as a debtor-in-possession. These claims are reflected in the July 31,
2003, balance sheet as "liabilities subject to compromise." Additional claims
(liabilities subject to compromise) may arise subsequent to the filing date
resulting from rejection of executory contracts or leases, and from the
determination by the court (or agreed to by parties in interest) of allowed
claims for contingencies and other disputed amounts. Actions by creditors whose
claims are secured against the Debtor's assets ("Secured Claims") also are
stayed, although the holders of such claims have the right to move the court for
relief from the stay. Secured Claims are secured primarily by the liens on
Debtor's Trade Acceptance Drafts receivable.

The Debtor received approval from the Bankruptcy Court to pay or otherwise honor
certain of its prepetition obligations, including wages and other employee
benefits.


                                       5
<PAGE>

                              ACTRADE CAPITAL, INC.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                                  JULY 31, 2003
                             (DOLLARS IN THOUSANDS)


NOTE 4.  REORGANIZATION COSTS

Reorganization costs include professional fees and other related expenses
attributable to the filings.

NOTE 5.  INTERCOMPANY TRANSACTIONS

Intercompany balances would be eliminated, in accordance with generally accepted
accounting principles, when the results of Actrade Capital, Inc. are
consolidated with its parent and all of its wholly owned subsidiaries or
affiliates. The intercompany balances that are included on the accompanying
financial statements under the caption of Due to Parent, Subsidiaries and
Affiliates amounted to $47,487 at July 31, 2003.

NOTE 6.  SUPPLEMENTAL FINANCIAL INFORMATION

Actrade Capital, Inc. is the operating entity, which recognized and paid all
operating expenses including professional fees and other related expenses
attributable to the reorganization filings for itself and its parent, Actrade
Financial Technologies Ltd. Actrade Capital, Inc. charged back to Actrade
Financial Technologies Ltd. through intercompany accounts for its share of
outstanding liabilities as of July 31, 2003 since Actrade Financial Technologies
Ltd is legally obligated for these outstanding liabilities. Actrade Capital,
Inc. paid approximately $2,059 for professional fees and other related expenses
attributable to the reorganization during the period from December 13, 2002
through July 31, 2003.

NOTE 7.  PRESS RELEASE DATED MARCH 26, 2003 ANNOUNCES ADDITIONAL DEVELOPMENTS

The Company's Board of Directors has determined to pursue a sale of the company
as a going concern, among other alternatives, to maximize value for all of the
Company's creditors and stockholders.

NOTE 8.  PRESS RELEASE DATED JUNE 10, 2003 ANNOUNCES
         ADDITIONAL DEVELOPMENTS

Actrade Financial Technologies, LTD ("Actrade" or the "Company") announced on
June 10, 2003 that, effective immediately, Actrade and all of its subsidiaries
will cease writing any new business and will not issue new Trade Acceptance
Drafts. Actrade also announced that it will promptly seek to reduce operating
expenses, while focusing


                                       6
<PAGE>

                              ACTRADE CAPITAL, INC.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                                  JULY 31, 2003
                             (DOLLARS IN THOUSANDS)



NOTE 8.  PRESS RELEASE DATED JUNE 10, 2003 ANNOUNCES
         ADDITIONAL DEVELOPMENTS (Cont'd)

primarily on collecting the Company's outstanding TADs receivable, and on the
sale process described below.

The Company also announced that, pursuant to its previously announced plan to
seek to maximize value for all of the Company's creditors and stockholders, it
is, with the assistance of its financial advisor, Anderson, Weinroth & Partners,
LLC, continuing to pursue a sale of the Company. Although the Company is engaged
in discussions with potential buyers, there can be no assurance that the Company
will consummate a sale transaction.

NOTE 9.  REVALUATION OF DEFERRED TAX ASSET

As further discussed in notes 7 and 8 the Company has discontinued operations
and is pursuing a sale of the Company. Effective in the June period, the Company
determined that a valuation of the Deferred Tax Asset was necessary. As of July
31, 2003 the asset is valued at $0. The valuation allowance of $7,504 was
necessary to reflect the realizable net value of taxes deferred as operations
were discontinued and the asset was unrealizable.


                                       7
<PAGE>

                                                                       EXHIBIT 1
                              ACTRADE CAPITAL, INC.
                             (DEBTOR-IN-POSSESSION)
                        SUMMARY OF MONTHLY DISBURSEMENTS
                                  JULY 31, 2003
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                   TOTAL MONTHLY
                                                               INTERCOMPANY        DISBURSEMENTS
                                           TOTAL MONTHLY       DISBURSEMENTS          EXCLUDING
DEBTOR COMPANY           CASE NUMBER       DISBURSEMENTS     INCLUDED IN TOTAL      INTERCOMPANY
--------------           -----------       -------------     -----------------      ------------
<S>                      <C>                   <C>                 <C>                <C>
Actrade Capital, Inc.    02-16213 (ALG)        $   218             $ --               $   218
                                           -----------------------------------------------------
                                               $   218             $ --               $   218
                                           =====================================================
</TABLE>


                                       8

