Exhibit 99.1
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
In re: Essential Therapeutics, Inc., et al | Case No. 03-11317 (MFW) | |
| Reporting Period: June 1, 2003 through June 30, 2003 |
MONTHLY OPERATING REPORT
File with Court and submit copy to United States Trustee within 20 days after end of month
Submit copy of report to any official committee appointed in the case.
REQUIRED DOCUMENTS | Form No. | Document Attached | Explanation Attached | |||
Schedule of Cash Receipts and Disbursements | MOR-1 | Yes | ||||
Bank Reconciliation (or copies of debtor's bank reconciliations) | MOR-1 (CON'T) | Yes | ||||
Copies of bank statements | ||||||
Cash disbursements journals | ||||||
Statement of Operations | MOR-2 | Yes | ||||
Balance Sheet | MOR-3 | Yes | ||||
Status of Postpetition Taxes | MOR-4 | Yes | ||||
Copies of IRS Form 6123 or payment receipt | ||||||
Copies of tax returns filed during reporting period | ||||||
Summary of Unpaid Postpetition Debts | MOR-4 | Yes | ||||
Listing of aged accounts payable | ||||||
Accounts Receivable Reconciliation and Aging | MOR-5 | Yes | ||||
Debtor Questionnaire | MOR-5 | Yes |
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.
Signature of Debtor | 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 MOR
(9/99)
In re: Essential Therapeutics, Inc., et al | Case No. 03-11317 (MFW) | |
| Debtor | Reporting Period: June 1, 2003 through June 30, 2003 | |
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS Amounts reported should be per the debtor’s books, 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. The amounts reported in the “PROJECTED” columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM IR-1). 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)] | ||
| BANK ACCOUNTS | CURRENT MONTH | CUMULATIVE FILING TO DATE | ||||||||||||||||||||||||||
| OPER. | PAYROLL | TAX | PETTY CASH | RESTRICTED | INVESTMENT | ACTUAL | PROJECTED | ACTUAL | PROJECTED | |||||||||||||||||||
CASH BEGINNING OF MONTH | 2,310,928.54 | 134,405.40 | — | 667.24 | 1,571,644.66 | 14,541,632.84 | 18,559,278.68 | 18,137,591.00 | 18,481,113.62 | 18,481,113.62 | ||||||||||||||||||
RECEIPTS | ||||||||||||||||||||||||||||
CASH SALES | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
ACCOUNTS RECEIVABLE | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
LOANS AND ADVANCES | — | — | — | — | — | — | — | 20,625.00 | 100,466.00 | 121,090.78 | ||||||||||||||||||
SALE OF ASSETS | $ | 18,713.66 | — | — | 175.00 | — | — | 18,888.66 | 540,000.00 | 55,910.66 | 577,021.54 | |||||||||||||||||
OTHER (ATTACH LIST) | 349,261.63 | 252.51 | — | — | — | 37,980.09 | 387,494.23 | 391,385.00 | 984,375.36 | 932,045.60 | ||||||||||||||||||
TRANSFERS (FROM DIP ACCTS) | — | 275,000.00 | — | — | — | — | 275,000.00 | — | 555,375.34 | — | ||||||||||||||||||
TOTAL RECEIPTS | 367,975.29 | 275,252.51 | — | 175.00 | — | 37,980.09 | 681,382.89 | 952,010.00 | 1,696,127.36 | 1,630,157.92 | ||||||||||||||||||
DISBURSEMENTS | ||||||||||||||||||||||||||||
GROSS PAYROLL | 218,139.90 | 114,296.09 | 332,435.99 | 230,202.00 | 626,891.57 | 556,830.00 | ||||||||||||||||||||||
PAYROLL TAXES | — | — | 34,530.00 | — | 83,524.00 | |||||||||||||||||||||||
SALES, USE, & OTHER TAXES | 25.00 | 25.00 | — | 294.15 | 10,000.00 | |||||||||||||||||||||||
INVENTORY PURCHASES | — | — | — | — | — | |||||||||||||||||||||||
SECURED/ RENTAL/ LEASES | 136,269.31 | 136,269.31 | 57,750.00 | 141,394.22 | 115,500.00 | |||||||||||||||||||||||
INSURANCE | — | — | — | — | — | |||||||||||||||||||||||
ADMINISTRATIVE | 18,848.75 | 13.65 | 2,349.43 | 21,211.83 | 13,500.00 | 27,216.47 | 27,000.00 | |||||||||||||||||||||
SELLING | — | — | — | — | — | |||||||||||||||||||||||
OTHER (ATTACH LIST) | 287,760.18 | 190,858.31 | 13,106.78 | 491,725.27 | 503,765.00 | 842,075.06 | 872,423.00 | |||||||||||||||||||||
OWNER DRAW * | — | — | — | — | — | |||||||||||||||||||||||
TRANSFERS (TO DIP ACCTS) | 275,000.00 | 275,000.00 | — | 555,375.34 | — | |||||||||||||||||||||||
| — | — | — | — | |||||||||||||||||||||||||
PROFESSIONAL FEES | — | — | 200,000.00 | — | 400,000.00 | |||||||||||||||||||||||
U.S. TRUSTEE QUARTERLY FEES | — | — | — | — | — | |||||||||||||||||||||||
COURT COSTS | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
TOTAL DISBURSEMENTS | 936,043.14 | 305,154.40 | — | 13.65 | — | 15,456.21 | 1,256,667.40 | 1,039,747.00 | 2,193,246.81 | 2,065,277.00 | ||||||||||||||||||
NET CASH FLOW | (568,067.85 | ) | (29,901.89 | ) | — | 161.35 | — | 22,523.88 | (575,284.51 | ) | (87,737.00 | ) | (497,119.45 | ) | (435,119.08 | ) | ||||||||||||
(RECEIPTS LESS DISBURSEMENTS) | ||||||||||||||||||||||||||||
CASH—END OF MONTH | 1,742,860.69 | 104,503.51 | — | 828.59 | 1,571,644.66 | 14,564,156.72 | 17,983,994.17 | 18,049,854.00 | 17,983,994.17 | 18,045,994.54 | ||||||||||||||||||
* COMPENSATION TO SOLE PROPRIETORS FOR SERVICES RENDERED TO BANKRUPTCY ESTATE | ||||||||||||||||||||||||||||
THE FOLLOWING SECTION MUST BE COMPLETED | ||||||||||||||||||||||||||||
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN) | ||||||||||||||||||||||||||||
TOTAL DISBURSEMENTS | $ | 1,256,667.40 | ||||||||||||||||||||||||||
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS | $ | 275,000.00 | ||||||||||||||||||||||||||
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts) | $ | — | ||||||||||||||||||||||||||
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES | $ | 981,667.40 | ||||||||||||||||||||||||||
FORM MOR-1 (9/99) | ||
In re: Essential Therapeutics, Inc., et al
Continuation Sheet for Initial MOR-1
Other Receipts
| Operating Jun-03 | Investment | Payroll | Total | |||||||||
Other Receipts | ||||||||||||
Investment income | $ | — | $ | 37,980.09 | $ | — | $ | 37,980.09 | ||||
Cobra insurance reimbursement | $ | 4,378.77 | $ | — | $ | — | $ | 4,378.77 | ||||
Interest income | $ | 110.39 | $ | — | $ | 252.51 | $ | 362.90 | ||||
IR expense reimbursement | $ | 1,025.00 | $ | — | $ | — | $ | 1,025.00 | ||||
Refund of operating charges for Maret property | $ | 2,302.10 | $ | — | $ | — | $ | 2,302.10 | ||||
Refund for conference | $ | 470.00 | $ | — | $ | — | $ | 470.00 | ||||
Sublease income-Naxcor | $ | 50,358.95 | $ | — | $ | — | $ | 50,358.95 | ||||
Fujisawa R&D reimbursement | $ | 245,000.00 | $ | — | $ | — | $ | 245,000.00 | ||||
Pfizer Patent reimbursement | $ | 45,616.42 | $ | — | $ | — | $ | 45,616.42 | ||||
Total Other Receipts | $ | 349,261.63 | $ | 37,980.09 | $ | 252.51 | $ | 387,494.23 | ||||
In re: Essential Therapeutics, Inc., et al
Continuation Sheet for Initial MOR-1
Other Disbursements
| Operating Jun-03 | Payroll | Investment | Total | |||||||||
Other Disbursements | ||||||||||||
Change in value of investments | $ | — | $ | — | $ | 13,106.78 | $ | 13,106.78 | ||||
Severance | $ | 98,466.67 | $ | 190,858.31 | $ | — | $ | 289,324.98 | ||||
Consultants/Temporary Help | $ | 62,881.15 | $ | — | $ | — | $ | 62,881.15 | ||||
Decontamination Costs | $ | 6,329.00 | $ | — | $ | — | $ | 6,329.00 | ||||
Contract Services | $ | 24,682.17 | $ | — | $ | — | $ | 24,682.17 | ||||
R&D and Facility costs | $ | 61,970.97 | $ | — | $ | — | $ | 61,970.97 | ||||
Travel expenses | $ | 33,430.22 | $ | — | $ | — | $ | 33,430.22 | ||||
Total Other Disbursements | $ | 287,760.18 | $ | 190,858.31 | $ | 13,106.78 | $ | 491,725.27 | ||||
| UNITED STATES BANKRUPTCY COURT | Case No. 03-11317 (MFW) | |
| DISTRICT OF DELAWARE | Chapter: 11 |
In re: Essential Therapeutics, Inc., et al. Debtor | |||
| Balance as of June 30, 2003 | |||
Fleet Bank | |||
Account Number: 9429246901 | $ | 1,645,069.46 | |
Fleet Bank | |||
Account Number: 9427759535 | $ | 36,334.16 | |
Fleet Bank | |||
Account Number: 9412142452 | $ | — | |
Fleet Bank | |||
Account Number: 9429240139 | $ | 61,457.07 | |
Silicon Valley Bank | |||
Account Number: 05027950-71 | $ | 101,424.98 | |
Silicon Valley Bank | |||
Account Number: 05027950-72 | $ | 3,078.53 | |
Fleet Investment Account | |||
Account Number: 0006537770 | $ | 14,570,156.72 | |
Restricted Cash | |||
Fleet Bank CD—912833FS4-3 | $ | 100,000.00 | |
Fleet Bank CD—000880693 | $ | 1,100,000.00 | |
Silicon Valley Bank CD—8800056672 | $ | 371,644.66 | |
Total Restricted Cash | $ | 1,571,644.66 | |
Petty Cash | 828.59 | ||
Account detail availale upon request
In re: Essential Therapeutics, Inc., et al | Case No. 03-11317 (MFW) | |
Debtor | Reporting Period: June 1, 2003 through June 30, 2003 |
STATEMENT OF OPERATIONS
(Income Statement)
The Statement of Operations is to be prepared on an accrual basis. The accrual basis of accounting recognizes revenue when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid.
| June 2003 | May 2003 | Cumulative Filing to Date | ||||||||||
REVENUES | ||||||||||||
Gross Revenues | $ | 464,904.46 | $ | 231,204.00 | $ | 696,108.46 | ||||||
Less: Returns and Allowances | — | — | — | |||||||||
Net Revenue | 464,904.46 | 231,204.00 | 696,108.46 | |||||||||
OPERATING EXPENSES | ||||||||||||
Payroll Costs | ||||||||||||
Salaries & Wages | 344,577.34 | 329,834.15 | 674,411.49 | |||||||||
Payroll Taxes | 15,861.61 | 18,983.11 | 34,844.72 | |||||||||
Employee Insurance Benefits | 44,708.10 | 27,201.27 | 71,909.37 | |||||||||
Other Employee Benefits | 6,389.11 | 5,226.11 | 11,615.22 | |||||||||
Stock Compensation Exp—EE | 49,550.51 | 49,550.51 | 99,101.02 | |||||||||
Management Incentive Bonus | 46,358.97 | (10,370.65 | ) | 35,988.32 | ||||||||
Total Payroll Costs | 507,445.64 | 420,424.50 | 927,870.14 | |||||||||
Operational Costs | ||||||||||||
Office Supplies | 1,116.60 | — | 1,116.60 | |||||||||
Software/Comp Supls (-$2.5K) | — | 576.45 | 576.45 | |||||||||
Printing & Reproduction | 92.97 | 247.30 | 340.27 | |||||||||
Laboratory Supplies | 3,313.14 | 1,978.11 | 5,291.25 | |||||||||
Chemicals | 991.33 | 2,153.16 | 3,144.49 | |||||||||
Postage & Freight | 1,106.93 | 1,939.06 | 3,045.99 | |||||||||
Depreciation—Furniture/Fixtures | 2,202.42 | 2,202.42 | 4,404.84 | |||||||||
Depreciation—Computer Equip | 4,094.90 | 4,126.42 | 8,221.32 | |||||||||
Depreciation—Software | 121.74 | 121.74 | 243.48 | |||||||||
Depreciation—Equipment | 369.77 | 369.77 | 739.54 | |||||||||
Amortization—L/H Improvements | 27,447.29 | 27,447.29 | 54,894.58 | |||||||||
Sales Tax on Capital Lease | — | 288.71 | 288.71 | |||||||||
Furniture/Equipment Rental | 627.96 | 1,136.79 | 1,764.75 | |||||||||
Business Travel | 18,289.27 | 12,249.07 | 30,538.34 | |||||||||
Meals & Entertainment | 1,081.32 | 854.48 | 1,935.80 | |||||||||
Other G&A Expenses | 291.67 | 291.67 | 583.34 | |||||||||
Conference, Seminar & Training | 123.06 | 2,585.00 | 2,708.06 | |||||||||
Total Operating Costs | 61,270.37 | 58,567.44 | 119,837.81 | |||||||||
Outside Services | ||||||||||||
Consultants & Honoraria | 22,331.37 | 55,400.54 | 77,731.91 | |||||||||
Contract Services | 16,631.27 | 81,323.70 | 97,954.97 | |||||||||
Deferred Comp—Consultants | 1,832.00 | 1,832.00 | 3,664.00 | |||||||||
Investor Relations | — | 2,696.75 | 2,696.75 | |||||||||
Insurance—D&O | 36,812.17 | 26,458.17 | 63,270.34 | |||||||||
Dues & Subscriptions | 4,242.33 | 6,221.01 | 10,463.34 | |||||||||
Books | — | (74.25 | ) | (74.25 | ) | |||||||
Clinical Development Insurance | 1,026.42 | 1,026.42 | 2,052.84 | |||||||||
Legal—Corporate | 100,000.00 | 100,000.00 | 200,000.00 | |||||||||
Legal—Patent | 31,189.83 | 60,000.00 | 91,189.83 | |||||||||
Temporary Help | 9,326.38 | 1,000.00 | 10,326.38 | |||||||||
Information Services | 1,051.00 | — | 1,051.00 | |||||||||
Bank Charges/Payroll Fees | 3,407.17 | 2,618.60 | 6,025.77 | |||||||||
Total Outside Services | 227,849.94 | 338,502.94 | 566,352.88 | |||||||||
Facilities | ||||||||||||
Rent | 216,512.32 | 205,184.76 | 421,697.08 | |||||||||
Utilities | 106,415.68 | 17,714.11 | 124,129.79 | |||||||||
Property & Occupancy Taxes | (12,725.09 | ) | 6,607.67 | (6,117.42 | ) | |||||||
Business Insurance | 23,914.40 | 23,912.03 | 47,826.43 | |||||||||
Business Taxes | 25.00 | 269.15 | 294.15 | |||||||||
Telephone/Fax/Networking | 12,481.66 | 10,164.26 | 22,645.92 | |||||||||
Janitorial | 7,063.00 | 9,029.10 | 16,092.10 | |||||||||
Safety/Hazardous Mat’l Monitor | 1,541.00 | 707.00 | 2,248.00 | |||||||||
Repair & Maint—Bldg | 1,363.85 | 2,654.63 | 4,018.48 | |||||||||
Repair & Maint—Equipment | 240.00 | 714.87 | 954.87 | |||||||||
Software License & Maint | 2,701.24 | 2,701.35 | 5,402.59 | |||||||||
Total Facilities | 359,533.06 | 279,658.93 | 639,191.99 | |||||||||
Restructuring Expenses | 144,173.68 | 206,355.74 | 350,529.42 | |||||||||
TOTAL OPERATING EXPENSES | 1,300,272.69 | 1,303,509.55 | 2,603,782.24 | |||||||||
OPERATING INCOME | (835,368.23 | ) | (1,072,305.55 | ) | (1,907,673.78 | ) | ||||||
Other Income/Expenses | ||||||||||||
Interest Income | 37,851.52 | 40,827.24 | 78,678.76 | |||||||||
Interest Expense | (4,698.08 | ) | (7,014.34 | ) | (11,712.42 | ) | ||||||
Gain/(Loss) on FA Disposals | 271,255.10 | 2,034.67 | 273,289.77 | |||||||||
Other Expense | (82,500.00 | ) | 0.13 | (82,499.87 | ) | |||||||
Total Other Income and Expenses | 221,908.54 | 35,847.70 | 257,756.24 | |||||||||
NET INCOME BEFORE TAXES | (613,459.69 | ) | (1,036,457.85 | ) | (1,649,917.54 | ) | ||||||
Income Tax Provision | — | — | — | |||||||||
Income Tax Provision | — | — | — | |||||||||
NET INCOME | $ | (613,459.69 | ) | $ | (1,036,457.85 | ) | $ | (1,649,917.54 | ) | |||
In re: Essential Therapeutics, Inc., et al | Case No. 03-11317 (MFW) | |
Debtor | Reporting Period: June 1, 2003 through June 30, 2003 |
BALANCE SHEET
The Balance Sheet is to be completed on an accrual basis only. Pre-petition liabilities must be classified separately from postpetition obligations.
BOOK VALUE June 30, 2003 | BOOK VALUE May 1, 2003 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash, Cash Equivalents & Investments | ||||||||
Petty Cash | $ | 828.59 | $ | 667.24 | ||||
Operating Cash | 1,640,174.47 | 1,854,762.68 | ||||||
Cash—Money Market | 102,686.22 | 498,923.25 | ||||||
Cash—Payroll | 101,424.98 | 47,271.56 | ||||||
Sect 125 & FSA | 3,078.53 | 8,976.61 | ||||||
Cash Equivalents | 296,634.83 | 175,618.31 | ||||||
Short Term Investments | 7,265,366.87 | 5,751,826.08 | ||||||
Long Term Investments | 7,002,155.02 | 8,575,282.93 | ||||||
Total Cash, Cash Equivalents & Investments | 16,412,349.51 | 16,913,328.66 | ||||||
Accounts Receivable | ||||||||
Accounts Receivable—Trade | 300,409.88 | 586,327.80 | ||||||
Accounts Receivable—Other | 1,180,100.58 | 2,666.67 | ||||||
Total Receivables | 1,480,510.46 | 588,994.47 | ||||||
Prepaid Expenses | ||||||||
Prepaid Consulting | 503.75 | 503.75 | ||||||
Prepaid Property Insurance | 43,359.82 | 91,186.25 | ||||||
Prepaid Medical Insurance | — | 48,075.33 | ||||||
Prepaid Workers Compensation | 5,224.04 | 15,653.22 | ||||||
Prepaid Clinical Trial Insurance | 4,618.85 | 6,671.69 | ||||||
Prepaid Life Insurance | — | 1,290.71 | ||||||
Prepaid Dir & Off Insurance | 1,237,893.94 | 1,301,164.28 | ||||||
Prepaid Contracts—Software | 17,728.27 | 23,130.86 | ||||||
Prepaid Subscriptions & Dues | 16,794.77 | 24,343.16 | ||||||
Prepaid Rent | 157,219.05 | 523,229.00 | ||||||
Prepaid Expenses—Other | 442,986.45 | 495,173.92 | ||||||
Prepaid Property Tax | — | 13,215.34 | ||||||
Total Prepaid Expenses | 1,926,328.94 | 2,543,637.51 | ||||||
Other Current Assets | 215,388.00 | 5,018.71 | ||||||
Assets Held For Sale | 220,514.47 | 760,514.47 | ||||||
Total Current Assets | 20,255,091.38 | 20,811,493.82 | ||||||
Fixed Assets | ||||||||
Furniture and Fixtures | 132,234.91 | 132,234.91 | ||||||
Computer Equipment | 276,103.22 | 274,607.61 | ||||||
Software | 4,361.99 | 4,361.99 | ||||||
Equipment | 660,210.62 | 8,271,446.09 | ||||||
L/H Improvements | 3,046,223.03 | 3,046,223.03 | ||||||
Total Capital Expenditures | 4,119,133.77 | 11,728,873.63 | ||||||
Accumulated Depreciation | ||||||||
Accum Depr—Furniture & Fixtures | (13,854.43 | ) | (9,449.59 | ) | ||||
Accum Depr—Computers | (182,975.59 | ) | (174,754.27 | ) | ||||
Accum Depr—Software | (304.35 | ) | (60.87 | ) | ||||
Accum Depr—Equipment | (165,387.29 | ) | (6,901,873.76 | ) | ||||
Accum Depr—L/H Improvements | (158,954.75 | ) | (104,060.17 | ) | ||||
Total Accumulated Depreciation | (521,476.41 | ) | (7,190,198.66 | ) | ||||
Assets Held for Sale—Contra | (220,514.47 | ) | (760,514.47 | ) | ||||
Total Net Fixed Assets | 3,377,142.89 | 3,778,160.50 | ||||||
Deposits | — | 279,740.82 | ||||||
Restricted Cash—Long Term | 1,571,644.66 | 1,571,644.66 | ||||||
Other Non-Current Assets | ||||||||
Employee Loans—Long Term | 92,000.00 | 797,499.96 | ||||||
Goodwill | 1,526,216.88 | 1,526,216.88 | ||||||
Total Other Non-Current Assets | 1,618,216.88 | 2,323,716.84 | ||||||
TOTAL ASSETS | $ | 26,822,095.81 | $ | 28,764,756.64 | ||||
| In re: Essential Therapeutics, Inc., et al | Case No. 03-11317 (MFW) | |
Debtor | Reporting Period: June 1, 2003 through June 30, 2003 |
BALANCE SHEET
The Balance Sheet is to be completed on an accrual basis only. Pre-petition liabilities must be classified separately from postpetition obligations.
BOOK VALUE AT END OF June 30, 2003 | BOOK VALUE AT PETITION DATE OF May 1, 2003 | |||||||
ASSETS | ||||||||
| LIABILITIES & STOCKHOLDERS’ EQUITY | ||||||||
Liabilities | ||||||||
Current Liabilities | ||||||||
Accounts Payable-Prepetition | $ | 321,366.94 | $ | 239,077.04 | ||||
Accounts Payable-Postpetition | 73,560.78 | — | ||||||
Total Accounts Payable | 394,927.72 | 239,077.04 | ||||||
Accrued Compensation | ||||||||
Accrued Salaries & P/R Taxes | 11,700.08 | 7,517.30 | ||||||
Accrued Vacation & Sick Time | 94,952.65 | 141,124.06 | ||||||
Accrued Sect 125 & FSA Deduction | 2,631.79 | 1,809.36 | ||||||
Accrued Bonus & Incentive Compensation | 191,044.50 | 166,140.75 | ||||||
Total Accrued Compensation | 300,329.02 | 316,591.47 | ||||||
Accrued Restructuring 02—S/T | 643,818.33 | 644,503.33 | ||||||
Accrued Restructuring 03—S/T | 488,590.93 | 944,998.32 | ||||||
Deferred Revenue | 83,328.67 | 249,996.67 | ||||||
Other Current Liabilities | ||||||||
Accrued Curr Liab—Other | 175,075.20 | 174,156.66 | ||||||
Accured Legal—General | 195,380.93 | — | ||||||
Accrued Legal—Patents | 101,072.58 | 46,358.70 | ||||||
Accrued Investor Relations | 64,986.01 | 108,700.76 | ||||||
Accrued Property Taxes | 48,387.27 | 67,982.22 | ||||||
Accrued Sales & Use Tax—CA | 4,056.87 | 195.41 | ||||||
Current Portion—Capital Leases | 53,378.90 | 45,146.03 | ||||||
Current Portion—Notes Payable | 178,001.83 | 179,902.33 | ||||||
Total Other Current Liabilities | 820,339.59 | 622,442.11 | ||||||
Total Current Liabilities | 2,731,334.26 | 3,017,608.94 | ||||||
Long-term Liabilities | ||||||||
Long Term Portion—Capital Leases | 118,720.79 | 130,600.47 | ||||||
Long Term Portion—Notes Payable | 295,637.65 | 434,572.97 | ||||||
Accrued Rent-Long Term | 416,985.69 | 372,778.56 | ||||||
Total Long-Term Liabilities | 831,344.13 | 937,952.00 | ||||||
Total Liabilities | 3,562,678.39 | 3,955,560.94 | ||||||
Convert Redeem PS-Series B | 54,327,579.00 | 53,902,147.00 | ||||||
Stockholders' Equity | ||||||||
Common Stock | 18,939.94 | 18,939.94 | ||||||
Additional Paid-In Capital | 103,858,072.89 | 104,286,042.89 | ||||||
Notes Receivable from Stockholders | (145,943.97 | ) | (155,545.09 | ) | ||||
Unrealized Gain/(Loss) Mkt Sec | 247,614.35 | 259,841.23 | ||||||
Deferred Compensation | (1,052,067.37 | ) | (1,157,370.39 | ) | ||||
Retained Earnings—Prior Yrs | (132,344,859.88 | ) | (122,314,980.85 | ) | ||||
Retained Earnings—Current Yr | (1,649,917.54 | ) | (10,029,879.03 | ) | ||||
Total Stockholders' Equity | (31,068,161.58 | ) | (29,092,951.30 | ) | ||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 26,822,095.81 | $ | 28,764,756.64 | ||||
| $ | — | $ | — | |||||
In re: Essential Therapeutics, Inc., et al | Case No. 03-11317 (MFW) | |
Debtor | Reporting Period: June 1, 2003 through June 30, 2003 |
Essential Therapeutics—Consolidated
Balance Sheet—Detail
Financial Stmts—By Business Unit
For the Period from June 1, 2003 to June 30, 2003
| Essential | Althexis | Maret | Eliminations | Grand Total | ||||||||||
Current Assets | ||||||||||||||
Cash, Cash Equivalents & Investments | ||||||||||||||
Petty Cash | 578.59 | 250.00 | — | — | 828.59 | |||||||||
Operating Cash | 1,645,069.46 | (66,352.06 | ) | 61,457.07 | — | 1,640,174.47 | ||||||||
Cash—Money Market | — | 102,686.22 | — | — | 102,686.22 | |||||||||
Cash—Payroll | 101,424.98 | — | — | — | 101,424.98 | |||||||||
Sect 125 & FSA | 3,078.53 | — | — | — | 3,078.53 | |||||||||
Cash Equivalents | 290,634.83 | 6,000.00 | — | — | 296,634.83 | |||||||||
Short Term Investments | 7,265,366.87 | — | — | — | 7,265,366.87 | |||||||||
Long Term Investments | 7,002,155.02 | — | — | — | 7,002,155.02 | |||||||||
Total Cash, Cash Equivalents & Investments | 16,308,308.28 | 42,584.16 | 61,457.07 | — | 16,412,349.51 | |||||||||
Accounts Receivable | ||||||||||||||
Accounts Receivable—Trade | 300,409.88 | — | — | — | 300,409.88 | |||||||||
Accounts Receivable—Other | 1,180,100.58 | — | — | — | 1,180,100.58 | |||||||||
Intercompany Receivable | 24,337,468.97 | 516,692.34 | 209,947.60 | (25,064,108.91 | ) | — | ||||||||
Total Receivables | 25,817,979.43 | 516,692.34 | 209,947.60 | (25,064,108.91 | ) | 1,480,510.46 | ||||||||
Prepaid Expenses | ||||||||||||||
Prepaid Consulting | 503.75 | — | — | — | 503.75 | |||||||||
Prepaid Property Insurance | 1,736.48 | 41,623.34 | — | — | 43,359.82 | |||||||||
Prepaid Workers Compensation | 4,789.74 | 434.30 | — | — | 5,224.04 | |||||||||
Prepaid Clinical Trial Insurance | — | — | 4,618.85 | — | 4,618.85 | |||||||||
Prepaid Dir & Off Insurance | — | 1,237,893.94 | — | — | 1,237,893.94 | |||||||||
Prepaid Contracts—Software | 16,437.73 | 1,290.54 | — | — | 17,728.27 | |||||||||
Prepaid Subscriptions & Dues | — | 16,794.77 | — | — | 16,794.77 | |||||||||
Prepaid Rent | 84,733.34 | 72,485.71 | — | — | 157,219.05 | |||||||||
Prepaid Expenses—Other | 374,320.83 | 30,010.69 | 38,654.93 | — | 442,986.45 | |||||||||
Total Prepaid Expenses | 482,521.87 | 1,400,533.29 | 43,273.78 | — | 1,926,328.94 | |||||||||
Other Current Assets | 215,318.00 | 70.00 | — | — | 215,388.00 | |||||||||
Assets Held For Sale | — | 220,514.47 | — | — | 220,514.47 | |||||||||
Total Current Assets | 42,824,127.58 | 2,180,394.26 | 314,678.45 | (25,064,108.91 | ) | 20,255,091.38 | ||||||||
Fixed Assets | ||||||||||||||
Furniture and Fixtures | — | 132,234.91 | — | — | 132,234.91 | |||||||||
Computer Equipment | 119,870.40 | 156,232.82 | — | — | 276,103.22 | |||||||||
Software | — | 4,361.99 | — | — | 4,361.99 | |||||||||
Equipment | — | 660,210.62 | — | — | 660,210.62 | |||||||||
L/H Improvements— | — | 3,046,223.03 | — | — | 3,046,223.03 | |||||||||
Total Capital Expenditures | 119,870.40 | 3,999,263.37 | — | — | 4,119,133.77 | |||||||||
Accumulated Depreciation | ||||||||||||||
Accum Depr—Furniture & Fixtures | — | (13,854.43 | ) | — | — | (13,854.43 | ) | |||||||
Accum Depr—Computers | (95,375.08 | ) | (87,600.51 | ) | — | — | (182,975.59 | ) | ||||||
Accum Depr—Software | — | (304.35 | ) | — | — | (304.35 | ) | |||||||
Accum Depr—Equipment | — | (165,387.29 | ) | — | — | (165,387.29 | ) | |||||||
Accum Depr—L/H Improvements | — | (158,954.75 | ) | — | — | (158,954.75 | ) | |||||||
Total Accumulated Depreciation | (95,375.08 | ) | (426,101.33 | ) | — | — | (521,476.41 | ) | ||||||
Assets Held for Sale—Contra | — | (220,514.47 | ) | — | — | (220,514.47 | ) | |||||||
Total Net Fixed Assets | 24,495.32 | 3,352,647.57 | — | — | 3,377,142.89 | |||||||||
Deposits | — | — | — | — | — | |||||||||
Restricted Cash—Long Term | 1,471,644.66 | 100,000.00 | — | — | 1,571,644.66 | |||||||||
Other Non-Current Assets | ||||||||||||||
Notes Receivable | — | 145,943.97 | — | (145,943.97 | ) | — | ||||||||
Employee Loans—Long Term | 92,000.00 | — | — | — | 92,000.00 | |||||||||
Goodwill | 1,526,216.88 | — | — | — | 1,526,216.88 | |||||||||
Investment in Althexis | 228,862.60 | — | — | (228,862.60 | ) | — | ||||||||
Investment in Maret | (1,951,323.00 | ) | — | — | 1,951,323.00 | — | ||||||||
Total Other Non-Current Assets | (104,243.52 | ) | 145,943.97 | — | 1,576,516.43 | 1,618,216.88 | ||||||||
TOTAL ASSETS | 44,216,024.04 | 5,778,985.80 | 314,678.45 | (23,487,592.48 | ) | 26,822,095.81 | ||||||||
LIABILITIES & STOCKHOLDERS’ EQUITY
In re: Essential Therapeutics, Inc., et al | Case No. 03-11317 (MFW) | |
Debtor | Reporting Period: June 1, 2003 through June 30, 2003 |
Essential Therapeutics—Consolidated
Balance Sheet—Detail
Financial Stmts—By Business Unit
For the Period from June 1, 2003 to June 30, 2003
| Essential | Althexis | Maret | Eliminations | Grand Total | |||||||||||
Liabilities | |||||||||||||||
Current Liabilities | |||||||||||||||
Accounts Payable-Prepetition | 164,846.86 | 57,209.79 | 99,310.29 | — | 321,366.94 | ||||||||||
Accounts Payable-Postpetition | 34,443.08 | 26,143.70 | 12,974.00 | — | 73,560.78 | ||||||||||
Total Accounts Payable | 199,289.94 | 83,353.49 | 112,284.29 | — | 394,927.72 | ||||||||||
Accrued Compensation | |||||||||||||||
Accrued Salaries & P/R Taxes | 2,100.20 | 9,599.88 | — | — | 11,700.08 | ||||||||||
Accrued Vacation & Sick Time | 49,412.95 | 45,539.70 | — | — | 94,952.65 | ||||||||||
Accrued Sect 125 & FSA Deduction | 2,631.79 | — | — | — | 2,631.79 | ||||||||||
Accrued Bonus & Incentive Compensation | — | 191,044.50 | — | — | 191,044.50 | ||||||||||
Total Accrued Compensation | 54,144.94 | 246,184.08 | — | — | 300,329.02 | ||||||||||
Accrued Restructuring 02—S/T | — | 643,818.33 | — | — | 643,818.33 | ||||||||||
Accrued Restructuring 03—S/T | 491,780.27 | (3,189.34 | ) | — | — | 488,590.93 | |||||||||
Deferred Revenue | 83,328.67 | — | — | — | 83,328.67 | ||||||||||
Other Current Liabilities | |||||||||||||||
Accrued Curr Liab—Other | — | 173,575.20 | 1,500.00 | — | 175,075.20 | ||||||||||
Accured Legal—General | — | 195,380.93 | — | — | 195,380.93 | ||||||||||
Accrued Legal—Patents | 90,000.00 | 5,000.00 | 6,072.58 | — | 101,072.58 | ||||||||||
Accrued Investor Relations | — | 64,986.01 | — | — | 64,986.01 | ||||||||||
Accrued Property Taxes | 48,387.27 | — | — | — | 48,387.27 | ||||||||||
Accrued Sales & Use—TaxCA | 3,857.46 | — | 199.41 | — | 4,056.87 | ||||||||||
Current Portion—Capital Leases | 53,378.90 | — | — | — | 53,378.90 | ||||||||||
Current Portion—Notes Payable | — | 178,001.83 | — | — | 178,001.83 | ||||||||||
Total Other Current Liabilities | 195,623.63 | 616,943.97 | 7,771.99 | — | 820,339.59 | ||||||||||
Total Current Liabilities | 1,024,167.45 | 1,587,110.53 | 120,056.28 | — | 2,731,334.26 | ||||||||||
Long-term Liabilities | |||||||||||||||
Long Term Portion—Capital Leases | 118,720.79 | — | — | — | 118,720.79 | ||||||||||
Long Term Portion—Notes Payable | — | 295,637.65 | — | — | 295,637.65 | ||||||||||
Accrued Rent—Long Term | — | 416,985.69 | — | — | 416,985.69 | ||||||||||
Intercompany Payable | — | 18,553,299.85 | 6,510,809.06 | (25,064,108.91 | ) | — | |||||||||
Total Long-Term Liabilities | 118,720.79 | 19,265,923.19 | 6,510,809.06 | (25,064,108.91 | ) | 831,344.13 | |||||||||
Total Liabilities | 1,142,888.24 | 20,853,033.72 | 6,630,865.34 | (25,064,108.91 | ) | 3,562,678.39 | |||||||||
Convert Redeem PS-Series B | 54,327,579.00 | — | — | — | 54,327,579.00 | ||||||||||
Stockholders’ Equity | |||||||||||||||
Common Stock | 18,939.94 | — | — | — | 18,939.94 | ||||||||||
Additional Paid-In Capital | 103,858,072.89 | — | — | — | 103,858,072.89 | ||||||||||
Net Equity at Acquisition | — | 228,862.60 | (1,951,323.00 | ) | 1,722,460.40 | — | |||||||||
Notes Receivable from Stockholders | — | — | — | (145,943.97 | ) | (145,943.97 | ) | ||||||||
Unrealized Gain/(Loss) Mkt Sec | 247,614.35 | — | — | — | 247,614.35 | ||||||||||
Deferred Compensation | (1,052,067.37 | ) | — | — | — | (1,052,067.37 | ) | ||||||||
Retained Earnings—Prior Yrs | (114,034,956.15 | ) | (14,083,604.95 | ) | (4,226,298.78 | ) | — | (132,344,859.88 | ) | ||||||
Retained Earnings—Current Yr | (292,046.86 | ) | (1,219,305.57 | ) | (138,565.11 | ) | — | (1,649,917.54 | ) | ||||||
Total Stockholders’ Equity | (11,254,443.20 | ) | (15,074,047.92 | ) | (6,316,186.89 | ) | 1,576,516.43 | (31,068,161.58 | ) | ||||||
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY | 44,216,024.04 | 5,778,985.80 | 314,678.45 | (23,487,592.48 | ) | 26,822,095.81 | |||||||||
In re: Essential Therapeutics, Inc., et al | Case No. 03-11317 (MFW) | |
Debtor | Reporting Period: June 1, 2003 through June 30, 2003 |
STATUS OF POSTPETITION TAXES
The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero. Attach photocopies of IRS Form 6123 or payment receipt to verify payment or deposit of federal payroll taxes. Attach photocopies of any tax returns filed during the reporting period.
Beginning Liability | Amount Withheld or Accrued | Amount Paid | Date Paid | Check No. or EFT | Ending Tax | |||||||
Federal | ||||||||||||
Withholding | — | |||||||||||
FICA-Employee | — | |||||||||||
FICA-Employer | — | |||||||||||
Unemployment | — | |||||||||||
Income | — | |||||||||||
Other: | — | |||||||||||
Total Federal Taxes | — | |||||||||||
State and Local | ||||||||||||
Withholding | — | |||||||||||
Sales | — | |||||||||||
Excise | — | |||||||||||
Unemployment | — | |||||||||||
Real Property | — | |||||||||||
Personal Property | — | |||||||||||
Other: | — | |||||||||||
Total State and Local | — | |||||||||||
Total Taxes | — | |||||||||||
Essential Therapeutics, Inc. and its subsidiaries The Althexis Company, Inc. and Maret Corporation attest that they are compliant with the payment all of taxes as of June 30, 2003.
SUMMARY OF UNPAID POSTPETITION DEBTS
Attach aged listing of accounts payable.
| Number of Days Past Due | |||||||||||||
| Current | 0-30 | 31-60 | 61-90 | Over 90 | Total | ||||||||
Accounts Payable | $ | 73,560.78 | See attachment for details | ||||||||||
Wages Payable | |||||||||||||
Taxes Payable | |||||||||||||
Rent/Leases-Building | |||||||||||||
Rent/Leases-Equipment | |||||||||||||
Secured Debt/Adequate Protection Payments | |||||||||||||
Professional Fees | |||||||||||||
Amounts Due to Insiders* | |||||||||||||
Other: | |||||||||||||
Other: | |||||||||||||
Total Postpetition Debts | |||||||||||||
Explain how and when the Debtor intends to pay any past-due postpetition debts.
All items will be paid within our normal terms of 30 days from date of invoice.
| *“Insider”is defined in 11 U.S.C. Section 101(31). | FORM MOR-4 | |
| (9/99) |
| In re: Essential Therapeutics, Inc., et al | Case No. 03-11317 (MFW) | |
Debtor | Reporting Period: June 1, 2003 through June 30, 2003 |
| The Althexis Company Inc. | |||
American Express | $ | 8,135.70 | |
AT&T | $ | 421.95 | |
AT&T Global | $ | 221.65 | |
AT&T Wireless | $ | 69.85 | |
B&B Cleaning | $ | 1,430.00 | |
Martha Carter | $ | 623.98 | |
CHB Consulting | $ | 2,990.00 | |
City of Waltham | $ | 518.90 | |
Cityside Limo | $ | 681.00 | |
Joe Davis | $ | 3,189.34 | |
Foley Food and Vending | $ | 55.75 | |
Jennifer Power | $ | 445.99 | |
Liz Grammer | $ | 1,900.52 | |
Manuel Navia | $ | 260.52 | |
The New York Times | $ | 23.00 | |
Tim Noyes | $ | 404.73 | |
Pitney Bowes Credit Corp | $ | 203.70 | |
Premiere Conferencing | $ | 863.89 | |
Primus Telecommunications | $ | 22.00 | |
R.B. Allen Co., Inc. | $ | 900.00 | |
RR Donnelley Receivables | $ | 755.00 | |
UPS | $ | 290.13 | |
Verizon | $ | 1,571.38 | |
Xerox Corporation | $ | 164.72 | |
| $ | 26,143.70 | ||
Maret Corporation | |||
The Research Foundation of SUNY | $ | 5,974.00 | |
Synergee LLC | $ | 7,000.00 | |
| $ | 12,974.00 | ||
Essential Therapeutics, Inc. | |||
American Society for Microbiologists | $ | 152.00 | |
City of Mountain View | $ | 1,823.01 | |
Elisa Kung | $ | 520.00 | |
Envectra | $ | 1,400.00 | |
Iron Mountain | $ | 1,051.00 | |
Kate Young | $ | 1,722.06 | |
LabWorks Equipment Service, Inc. | $ | 2,077.82 | |
Michael Perez | $ | 304.38 | |
Pacific Bell | $ | 5,388.33 | |
PG&E | $ | 5,850.05 | |
Peninsula Security Services | $ | 535.00 | |
Town & Country | $ | 12,245.00 | |
VWR Scientific | $ | 140.43 | |
Western-Allied Service Company | $ | 1,234.00 | |
| $ | 34,443.08 | ||
Total outstanding AP | $ | 73,560.78 | |
In re: Essential Therapeutics, Inc., et al | Case No. 03-11317 (MFW) | |
Debtor | Reporting Period: June 1, 2003 through June 30, 2003 |
| ACCOUNTS RECEIVABLE RECONCILIATION AND AGING | ||||
| Accounts Receivable Reconciliation | Amount | |||
Total Accounts Receivable at the beginning of the reporting period | $ | 221,026.30 | ||
+ Amounts billed during the period | $ | 200,000.00 | ||
- Amounts collected during the period | $ | (120,616.42 | ) | |
Total Accounts Receivable at the end of the reporting period | $ | 300,409.88 | ||
| Accounts Receivable Aging | Amount | |||
0 – 30 days old | $ | 125,000.00 | ||
31 – 60 days old | $ | 175,409.88 | ||
61 – 90 days old | $ | — | ||
91 + days old | $ | — | ||
Total Accounts Receivable | $ | 300,409.88 | ||
Amount considered uncollectible (Bad Debt) | $ | — | ||
Accounts Receivable (Net) | $ | 300,409.88 | ||
| DEBTOR QUESTIONNAIRE | ||||
Must be completed each month | Yes | No | ||
1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below. | X | |||
2. Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below. | X | |||
3. Have all postpetition tax returns been timely filed? If no, provide an explanation below. | X | |||
4. Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below. | X | |||
FORM MOR-5
(9/99)
