Essential Therapeutics (ETRX) 8-K Financial statements and exhibits

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re: Essential Therapeutics, Inc., et al.	Case No. 03-11317 (MFW)
Debtor	Chapter: 11

INITIAL MONTHLY OPERATING REPORT

File report and attachments with Court and submit copy to United States Trustee within 15 days after order for relief.

Certificates of insurance must name United States Trustee as a party to be notified in the event of policy cancellation. Bank accounts and checks must bear the name of the debtor, the case number, and the designation “Debtor in Possession.” Examples of acceptable evidence of Debtor in Possession Bank accounts include voided checks, copy of bank deposit agreement/certificate of authority, signature card, and/or corporate checking resolution.

REQUIRED DOCUMENTS	Document Attached	Explanation Attached
12-Month Cash Flow Projection (Form IR-1)	Yes
Certificates of Insurance:
Workers Compensation	Yes
Property	Yes
General Liability	Yes
Vehicle	Yes
Other:
Evidence of Debtor in Possession Bank Accounts
Tax Escrow Account	N/A
General Operating Accounts	Yes
Other:
Other:

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

/s/ Paul J. Mellett Signature of Debtor	06/03/2003
	Date
Signature of Joint Debtor	Date
Signature of Authorized Individual*	Date
Printed Name of Authorized Individual	Title of Authorized Individual

*Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

FORM IR

(9/99)

UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
In re: Essential Therapeutics, Inc., et al.	Case No. 03-11317 (MFW)
Debtor	Chapter: 11
Fleet Bank
Account Number: 9429246901
ABA: 011000138
100 Federal Street
9th Floor
Mailcode: MADE1009G
Boston, MA 02110
Fleet Bank
Account Number: 9427759535
ABA: 011000138
100 Federal Street
9th Floor
Mailcode: MADE1009G
Boston, MA 02110
Fleet Bank
Account Number: 9412142452
ABA: 011000138
100 Federal Street
9th Floor
Mailcode: MADE1009G
Boston, MA 02110
Fleet Bank
Account Number: 9429240139
ABA: 011000138
100 Federal Street
9th Floor
Mailcode: MADE1009G
Boston, MA 02110
Silicon Valley Bank
Account Number: 05027950-71
ABA: 121140399
3003 Tasman Drive
Santa Clara, CA 95054
Silicon Valley Bank
Account Number: 05027950-72
ABA: 121140399
3003 Tasman Drive
Santa Clara, CA 95054

In re: Essential Therapeutics, Inc., et al Case No.: 03-11317 (MFW)

Cash Flow Projections for the 12 Month Period: May 1, 2003 through April 30, 2004

Form MOR-1

	May-03		Jun-03		Jul-03		Aug-03		Sep-03		Oct-03		Nov-03		Dec-03		Jan-04		Feb-04		Mar-04	Apr-04
Cash, Beginning of Month	18,484,973		18,137,591		18,049,855		17,723,796		17,254,772		16,831,489		16,462,072		16,165,155		15,895,113		15,603,209		15,301,306	15,545,028
Receipts
Cash Sales	—		—		—		—		—		—		—		—		—		—		—	—
Accounts Receivable	—		—		—		—		—		—		—		—		—		—		—	—
Loans and Advances	100,466		20,625		—		—		28,625		—		—		20,625		—		—		535,625	—
Sale of Assets	37,022		540,000		—		—		—		—		—		—		—		—		—	—
Other (See attached)	540,660		391,385		370,359		820,019		—		—		—		—		—		—		—	—
Total Receipts	678,148		952,010		370,359		820,019		28,625		—		—		20,625		—		—		535,625	—
Disbursements
Net Payroll	326,627		230,202		185,571		127,962		108,392		108,392		108,392		108,392		112,728		112,728		112,728	112,728
Payroll Taxes	48,994		34,530		27,836		19,194		16,259		16,259		16,259		16,259		16,909		16,909		16,909	16,909
Sales, Use and Other Taxes	10,000		—		—		10,000		—		—		10,000		—		—		10,000		—	—
Inventory Purchases	—		—		—		—		—		—		—		—		—		—		—	—
Secured Rental/Leases	57,750		57,750		57,750		132,797		82,766		82,766		82,766		82,766		82,766		82,766		82,766	82,766
Insurance	—		—		—		60,000		—		—		—		—		—		—		—	130,000
Administrative & Selling	13,500		13,500		13,500		13,500		13,500		13,500		13,500		13,500		13,500		13,500		13,500	13,500
Other (See attached)	368,659		503,765		204,261		825,589		130,991		41,000		41,000		41,000		41,000		41,000		41,000	41,000
Professional Fees	200,000		200,000		200,000		100,000		100,000		100,000		25,000		25,000		25,000		25,000		25,000	25,000
U.S. Trustee Fees	—		—		7,500		—		—		7,500		—		3,750		—		—		—	3,750
Court Costs	—		—		—		—		—		—		—		—		—		—		—	—
Total Disbursements	1,025,530		1,039,747		696,418		1,289,043		451,908		369,417		296,917		290,667		291,903		301,903		291,903	425,653
Net Cash Flow	(347,382	)	(87,737	)	(326,059	)	(469,024	)	(423,283	)	(369,417	)	(296,917	)	(270,042	)	(291,903	)	(301,903	)	243,722	(425,653	)
Cash, End of Month	18,137,591		18,049,855		17,723,796		17,254,772		16,831,489		16,462,072		16,165,155		15,895,113		15,603,209		15,301,306		15,545,028	15,119,375

In re: Essential Therapeutics, Inc., et al Case No.: 03-11317 (MFW)

Continuation Sheet for Initial MOR-1

Other Receipts

	May-03		Jun-03		Jul-03		Aug-03		Sep-03		Oct-03		Nov-03		Dec-03		Jan-04		Feb-04		Mar-04		Apr-04
Other Receipts
Sublease income-Naxcor		50,359		50,359		50,359		50,359		—		—		—		—		—		—		—		—
Return of Portola security deposit		—		—		—		150,000
Return of PG&E utility deposit		—		—		—		124,660
Fujisawa R&D reimbursement		75,000		245,000		320,000		120,000		—		—		—		—		—		—		—		—
Fujisawa FTE reimbursement		375,000		—		—		375,000		—		—		—		—		—		—		—		—
J&J Patent reimbursement		40,302		—		—		—		—		—		—		—		—		—		—		—
Pfizer Patent reimbursement		—		45,616		—		—		—		—		—		—		—		—		—		—
SPAH Patent Reimbursement		—		50,410		—		—		—		—		—		—		—		—		—		—
Total Other Receipts	$	540,660	$	391,385	$	370,359	$	820,019	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

In re: Essential Therapeutics, Inc., et al Case No.: 03-11317 (MFW)

Continuation Sheet for Initial MOR-1

Other Disbursements

	May-03		Jun-03		Jul-03		Aug-03		Sep-03		Oct-03		Nov-03		Dec-03		Jan-04		Feb-04		Mar-04		Apr-04
Other Disbursements
Severance	$	185,378	$	312,515	$	23,011	$	490,789	$	34,991	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consultants		47,775		36,250		36,250		31,000		31,000		31,000		31,000		31,000		31,000		31,000		31,000		31,000
Decontamination Costs		40,000		20,000		10,000		50,000		50,000		—		—		—		—		—		—		—
Contract Services		85,506		125,000		125,000		5,000		5,000		5,000		5,000		5,000		5,000		5,000		5,000		5,000
Travel expenses		10,000		10,000		10,000		10,000		10,000		5,000		5,000		5,000		5,000		5,000		5,000		5,000
Prepetition payments		—		—		—		238,800		—		—		—		—		—		—		—		—
Total Other Disbursements	$	368,659	$	503,765	$	204,261	$	825,589	$	130,991	$	41,000	$	41,000	$	41,000	$	41,000	$	41,000	$	41,000	$	41,000