
                                                                    EXHIBIT 99.1
                                                                    ------------



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. 02-16212 (ALG)
                                            :
ACTRADE FINANCIAL TECHNOLOGIES LTD.         :
                                            :
                              Debtor.       :
                                            :
--------------------------------------------x


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

<PAGE>

UNITED STATE BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK

                                              CHAPTER 11 CASE NO. 02-16212 (ALG)


                       Actrade Financial Technologies Ltd.
================================================================================
                                     DEBTOR


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


DEBTOR'S ADDRESS:
-----------------
Actrade Financial Technologies Ltd.
7 Penn Plaza, Suite 422
New York, NY 10001

                                        Monthly Disbursements:  $          NONE
                                                                ---------------

DEBTOR'S ATTORNEY:
------------------
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, NY 10019

                                        Monthly After Tax Loss: $        (2,000)
                                                                ---------------

         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:  September 15, 2003          By:  /s/  John Fioretti
                                        ---------------------------------------
                                        John Fioretti
                                        Chief Restructering Officer
                                        Actrade Financial Technologies Ltd.


Indicate if this is an amended statement by checking here

                                        Amended Statement       [_]

<PAGE>


           ACTRADE FINANCIAL TECHNOLOGIES LTD.
             (DEBTOR-IN-POSSESSION)
           BALANCE SHEET
          AUGUST 31, 2003
            (DOLLARS IN THOUSANDS)



ASSETS

CURRENT ASSETS:
     Cash                                                       $             1
     Other current assets                                                    33
                                                                ----------------
         Total Current Assets                                                34


DUE FROM SUBSIDIARIES                                                    18,940

INVESTMENTS IN SUBSIDIARIES                                                 320
                                                                ----------------
TOTAL ASSETS                                                    $        19,294
                                                                ================

LIABILITIES AND STOCKHOLDERS' EQUITY
     Accrued expenses                                           $         1,300
                                                                ----------------

         Total Current Liabilities                                        1,300

Liabilities Subject to Compromise:

     Accrued expenses                                                       303
                                                                ----------------
TOTAL LIABILITIES                                                         1,603
                                                                ----------------
STOCKHOLDERS' EQUITY
     Common stock, $0.0001 par value; authorized 100,000,000
      shares, issued and outstanding 11,849,490 shares at August
      31, 2003                                                                1
     Additional paid in capital                                          58,102
     Accumulated deficit                                                 (1,209)
     Treasury stock at cost; 1,336,678 shares at August 31, 2003        (39,203)
                                                                ----------------
     Total Stockholders' Equity                                          17,691
                                                                ----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                      $        19,294
                                                                ================

                       See Notes to Financial Statements.


                                        2
<PAGE>

                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
                             (DEBTOR-IN-POSSESSION)
                             STATEMENT OF OPERATIONS
                             (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                                                  FOR THE PERIOD
                                                                                                 DECEMBER 13, 2002
                                                                    MONTH ENDED                       THROUGH
                                                                  AUGUST 31, 2003                 AUGUST 31, 2003
                                                                  ---------------                 ---------------
<S>                                                               <C>                             <C>
Revenue                                                           $      --                       $     --

Operating Expenses:
     General and administrative expenses                                  2                             33
                                                                  ---------                       --------
Total Operating Expenses                                                  2                             33
                                                                  ---------                       --------
Loss before reorganization items and income tax benefit                  (2)                           (33)

Reorganization items:
         Interest earned on accumulated cash resulting from
            Chapter 11 proceeding                                        --                             --
                                                                  ---------                       --------


Net loss                                                          $      (2)                      $    (33)
                                                                  =========                       ========
</TABLE>

                       See Notes to Financial Statements.


                                        3
<PAGE>

                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
                             (DEBTOR-IN-POSSESSION)
                             STATEMENT OF CASH FLOWS
                             (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                                                  FOR THE PERIOD
                                                                                                 DECEMBER 13, 2002
                                                                    MONTH ENDED                       THROUGH
                                                                  AUGUST 31, 2003                 AUGUST 31, 2003
                                                                  ---------------                 ---------------
<S>                                                               <C>                             <C>

CASH FLOWS FROM OPERATING ACTIVITIES:
  NET LOSS                                                        $      (2)                      $    (33)

CHANGES IN OPERATING ASSETS AND LIABILITIES:
      DUE FROM SUBSIDIARIES                                            (440)                          (998)
     ACCRUED EXPENSES                                                   346                           793
                                                                  ---------                       --------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
  BEFORE REORGANIZATION ITEMS                                           (96)                          (238)
                                                                  ---------                       --------
OPERATING CASH FLOW FROM REORGANIZATION ITEMS -
   BANKRUPTCY RELATED PROFESSIONAL FEES PAID                             --                             --
                                                                  ---------                       --------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                     (96)                          (238)
                                                                  ---------                       --------

NET INCREASE (DECREASE) IN CASH DURING THE PERIOD                       (96)                          (238)

CASH BALANCE AT BEGINNING OF PERIOD                                      97                            239
                                                                  ---------                       --------
CASH BALANCE AT END OF PERIOD                                     $       1                       $      1
                                                                  =========                       ========
</TABLE>

                       See Notes to Financial Statements.


                                        4
<PAGE>

                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                                 AUGUST 31, 2003
                             (DOLLARS IN THOUSANDS)

NOTE 1.  BASIS OF PRESENTATION

The accompanying unaudited financial statements of Actrade Financial
Technologies Ltd. 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 Financial
Technologies Ltd. are consolidated with all of its wholly owned subsidiaries.

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 Financial Technologies Ltd. (the "Debtor,"
"Actrade" or the "Company") 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 August 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 FINANCIAL TECHNOLOGIES LTD.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                                 AUGUST 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 Financial Technologies Ltd.
are consolidated with all of its wholly owned subsidiaries. The intercompany
balances that are included on the accompanying financial statements under the
caption of Due from Subsidiaries amounted to $18,940 at August 31, 2003.

NOTE 6.  SUPPLEMENTAL FINANCIAL INFORMATION

Actrade Financial Technologies Ltd. operates as a holding company. Almost all of
its operating expenses including professional fees and other related expenses
attributable to the reorganization filings are recognized and paid by its wholly
owned subsidiary, Actrade Capital, Inc., also a debtor-in-possession. Since
Actrade Financial Technologies Ltd. is legally liable for its share of
outstanding liabilities, Actrade Capital, Inc. charged back Actrade Financial
Technologies Ltd. through intercompany accounts for the outstanding liabilities
as of August 31, 2003. Actrade Financial Technologies Ltd. paid no professional
fees and other related expenses attributable to the reorganization during the
period from December 13, 2002 through August 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 on June 10, 2003 announced 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
primarily on collecting the Company's outstanding TAD's receivable, and on the
sale process described below.


                                        6
<PAGE>

                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                                 AUGUST 31, 2003
                             (DOLLARS IN THOUSANDS)


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.  FORM 8K REPORT FILED WITH SECURITIES EXCHANGE
         COMMISSION ON AUGUST 27, 2003 (REGULATION FD
         DISCLOSURE)

Actrade Financial Technologies Ltd. (the "Company") has hired John Fioretti to
serve as the Company's Chief Restructuring Officer. As previously announced, the
Company has ceased writing business and will shortly be conducting an auction
sale of operating assets. Accordingly as the Company moves to a new phase, Mr.
Fioretti will replace the Company's Chief Executive Officer, Mr. Richard
McCormick, who will be leaving the Company and transitioning his
responsibilities to Mr. Fioretti.

NOTE 10. FORM 8K REPORT FILED WITH SECURITIES EXCHANGE
         COMMISSION ON SEPTEMBER 11, 2003 (OTHER EVENTS
         AND REGULATION FD DISCLOSURE)

On September 11, 2003, the United States Bankruptcy Court for the Southern
District of New York entered an order approving the motion of Actrade Financial
Technologies, LTD. and one of its domestic subsidiaries ("collectively, the
Company") under Section 363 of the U.S. Bankruptcy Code to allow the sale of
certain intellectual property assets of the Company, including the Company's
patent, patent applications and trademarks to The CIT Group/Commercial Services,
Inc. for $200,000.


                                        7
<PAGE>

                                                                       EXHIBIT 1



                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
                             (DEBTOR-IN-POSSESSION)
                             STATEMENT OF OPERATIONS
                                 AUGUST 31, 2003
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                                                   TOTAL MONTHLY
                                                                                             INTERCOMPANY          DISBURSEMENTS
                                                                   TOTAL MONTHLY             DISBURSEMENTS           EXCLUDING
DEBTOR COMPANY                           CASE NUMBER               DISBURSEMENTS          INCLUDED IN TOTAL        INTERCOMAPNY
--------------                           -----------               -------------          -----------------        ------------
<S>                                      <C>                       <C>                    <C>                      <C>
Actrade Financial Technlogies Ltd.       02-16212 (ALG)            $    --                $    --                  $    --
                                                                   -------                -------                  -------
                                                                   $    --                $    --                  $    --
                                                                   =======                =======                  =======
</TABLE>


                                        8

