Middlebrook Pharmaceuticals (MBRK) 8-K Regulation FD Disclosure

Exhibit 99.1

UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE

In re MiddleBrook Pharmaceuticals, Inc.	Case No. 10-11485
Debtor	Reporting Period: October 1 — October 31, 2010

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.

		Document	Explanation	Affidavit/Supplement
REQUIRED DOCUMENTS	Form No.	Attached	Attached	Attached
Certifications
Schedule of Cash Receipts and Disbursements	MOR-1	X
Bank Reconciliation (or copies of debtor’s bank reconciliations)			see certifications	X
Schedule of Professional Fees Paid	MOR-1b	X
Copies of bank statements			see certifications	X
Cash disbursements journals		X
Statement of Operations	MOR-2	X
Balance Sheet	MOR-3	X
Status of Postpetition Taxes			see certifications	X
Copies of IRS Form 6123 or payment receipt
Copies of tax returns filed during reporting period
Summary of Unpaid Postpetition Debts	MOR-4	X
Listing of aged accounts payable	MOR-4	X
Accounts Receivable Reconciliation and Aging	MOR-5	X
Debtor Questionnaire	MOR-5	X		X

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
/s/ Brad Cole	November 22, 2010
Signature of Authorized Individual*	Date
Brad Cole	SVP, General Counsel
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.

MOR
(04/07)

UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE

In re MiddleBrook Pharmaceuticals, Inc.	Case No. 10-11485
Debtor	Reporting Period: October 1 — October 31, 2010

CERTIFICATIONS

A. Bank Reconciliation Certification

The undersigned verifies that, to my knowledge, all of the Debtors’ October 31, 2010 bank balances have been reconciled in an accurate and timely manner.

Bank Name	Account		Book Balance
Capital One Bank		****8899	$	3,716,550.04
Capital One Bank		****8910	$	10,000.00
Capital One Bank		****9471	$	13,511,494.19

B. Post-petition Taxes Certification

The undersigned verifies that, to my knowledge, all post-petition tax obligations, including but not limited to payroll, real property, income, franchise and other taxes have been paid to the proper taxing authority when due.

/s/ David Carlson	November 22, 2010
Signature of Authorized Individual	Date
David Carlson	VP, Finance and Treasurer
Printed Name of Authorized Individual	Title of Authorized Individual

In re: MiddleBrook Pharmaceuticals, Inc.	Case No. 10-11485
Debtor	Reporting Period: October 1 — October 31, 2010

MOR 1

	Current Month						Cumulative Filing to Date
	Actual			Forecast			Actual			Forecast
Beginning Date	1-Oct-10			1-Oct-10			3-May-10			3-May-10
Ending Date	31-Oct-10			31-Oct-10			31-Oct-10			31-Oct-10
Cash — Beginning Balance	$	17,830,481		$	17,955,495		$	5,257,718		$	5,269,539
Receipts
Lockbox		31,598		$	25,000			645,880		$	299,859
Misc Deposit		40,863		$	24,404			17,520,121		$	18,688,404
Total Receipts	$	72,461		$	49,404		$	18,166,001		$	18,988,263
Operating Disbursements
Gleacher	$	(132,000	)	$	0		$	(712,514	)	$	0
Dr Directory	$	0		$	0		$	(77,948	)	$	(127,774	)
Legal & Deal fees	$	(196,184	)	$	(96,815	)	$	(979,430	)	$	(770,511	)
KCC LLC	$	(12,421	)	$	(45,000	)	$	(58,665	)	$	(115,513	)
Creditors Committee Counsel & FA	$	(122,775	)	$	(35,799	)	$	(264,712	)	$	(395,066	)
Equity Committee Counsel	$	0		$	(150,000	)	$	(39,877	)	$	(189,877	)
Other Professional Fees	$	0		$	(179,197	)	$	0		$	(179,197	)
Payroll	$	(59,324	)	$	(81,461	)	$	(1,142,731	)	$	(1,409,830	)
Benefits	$	(60,904	)	$	(12,416	)	$	(216,130	)	$	(156,567	)
Severance	$	0		$	0		$	0		$	0
Invoices in A/P Aging	$	0		$	(4,636	)	$	(1,218,559	)	$	(1,153,048	)
Misc (TX rent, Insurance, ICS)	$	(41,506	)	$	(76,500	)	$	(433,572	)	$	(324,436	)
Other	$	(39,784	)	$	(44,000	)	$	(1,046,286	)	$	(1,208,458	)
voided checks	$	0		$	0		$	4,749		$	0
Total Operating Disbursements	$	(664,898	)	$	(725,824	)	$	(6,185,675	)	$	(6,030,277	)
Net Operating Cash Flow	$	(592,437	)	$	(676,420	)	$	11,980,326		$	12,957,986
Non-Operating Disbursements
Capex
Professional Fees
Total Non-Operating Disbursements	$	0		$	0		$	0		$	0
Net Operating Cash Flow Before Financing	$	(592,437	)	$	(676,420	)	$	11,980,326		$	12,957,986
Financing Activities
Interest Payments
Financing Activities	$	0		$	0		$	0		$	0
Cash Flow	$	(592,437	)	$	(676,420	)	$	11,980,326		$	12,957,986
Ending Cash Balance (per books)	$	17,238,044		$	17,279,075		$	17,238,044		$	18,227,526

DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)
TOTAL DISBURSEMENTS	$	(664,898	)
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS	$	0
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts)	$	0
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES	$	(664,898	)

In re: MiddleBrook Pharmaceuticals, Inc.	Case No. 10-11485
Debtor	Reporting Period: October 1 — October 31, 2010

Disbursements Journal

Checks cut during period

GL Posting		Checkbook
Date	Source Document	Amount		CM Trx Number		Voided	Paid ToRcvd From
10/13/2010	PMCHK	$	5.67		5245	No	A T & T 8174909174/8174908790
10/20/2010	PMCHK	$	2,995.85		5254	No	ADP
10/13/2010	PMCHK	$	79.60		5244	No	ADP Commercial Leasing
10/7/2010	PMCHK	$	81,814.75		5243	No	Alston & Bird LLP
10/27/2010	PMCHK	$	97,116.50		5263	No	Alston & Bird LLP
10/7/2010	PMCHK	$	1,050.00		5242	No	American Stock Transfer & Trust Co
10/20/2010	PMCHK	$	18.32		5256	No	AT&T
10/20/2010	PMCHK	$	311.23		5255	No	AT&T Mobility
10/7/2010	PMCHK	$	1,043.44		5239	No	ATT
10/20/2010	PMCHK	$	11,662.06		5257	No	Bayard, P.A.
10/27/2010	PMCHK	$	17,685.40		5275	No	Bayard, P.A.
10/13/2010	PMCHK	$	1,104.83		5247	No	Brad Cole
10/13/2010	PMCHK	$	421.32		5246	No	David Carlson
10/13/2010	PMCHK	$	24,137.23		5248	No	Dickstein Shapiro LLP
10/27/2010	PMCHK	$	52,137.95		5264	No	Dickstein Shapiro LLP
10/7/2010	PMCHK	$	132,000.00		5240	No	Gleacher & Company
10/13/2010	PMCHK	$	11,519.03		5253	No	Gray Robinson
10/7/2010	PMCHK	$	1,592.50		5241	No	Herman Technology Consultants-LLC
10/13/2010	PMCHK	$	1,732.01		5249	No	Herman Technology Consultants-LLC
10/27/2010	PMCHK	$	2,196.90		5265	No	Herman Technology Consultants-LLC
10/13/2010	PMCHK	$	3,237.30		5250	No	IKON Financial Services
10/27/2010	PMCHK	$	292.28		5266	No	IKON Financial Services
10/20/2010	PMCHK	$	7,509.11		5258	No	Integrated Commercialization Sol.
10/27/2010	PMCHK	$	17,152.55		5267	No	Invotex, Inc.
10/27/2010	PMCHK	$	12,421.30		5268	No	Kurtzman Carson Consultants
10/13/2010	PMCHK	$	107.01		5251	No	Prostar Services, Inc
10/20/2010	PMCHK	$	41.36		5259	No	Prostar Services, Inc
10/27/2010	PMCHK	$	574.00		5269	No	Pure Compliance
10/20/2010	PMCHK	$	250.00		5260	No	Transport Solutions Inc
10/27/2010	PMCHK	$	10,400.00		5272	No	U S TRUSTEE
10/27/2010	PMCHK	$	59,133.51		5270	No	United Healthcare Insurance Co.
10/27/2010	PMCHK	$	464.94		5271	No	UNUM Life Insurance
10/20/2010	PMCHK	$	637.08		5261	No	Verizon Wireless
10/27/2010	PMCHK	$	1,305.72		5273	No	VSP - (AT)
10/13/2010	PMCHK	$	66.15		5252	No	WorldWide express
10/20/2010	PMCHK	$	107.93		5262	No	WorldWide express
10/27/2010	PMCHK	$	17,252.70		5274	No	Young Conaway Stargatt & Taylor LLP
		$	571,577.53	Checks Cut

Debits to bank other than checks

Transaction					Customer
Date	Description	Amount		Bank Ref#	Ref. #	Payee / Description
10/8/2010	ADP Payroll Fee	$	279.90	WDL000001207		ADP
10/13/2010	Payroll	$	30,944.80	WDL000001211		ADP
10/14/2010	ADP Payroll Fee	$	280.58	WDL000001213		ADP
10/14/2010	Payroll Taxes	$	13,132.50	WDL000001214		ADP
10/22/2010	ADP Payroll Fee	$	207.89	OEX000001219		ADP
10/27/2010	Payroll	$	14,435.77	WDL000001221		ADP
10/25/2010	Banking Fee	$	42.25	OEX000001223		Capital One
10/29/2010	November Rent	$	33,996.65	WDL000001222		Maguire Partners
		$	93,320.34	Debits to Bank other than Checks
Voided Checks from Prior Periods		$	0.00
		$	664,897.87	Total disbursements
Checks cleared by bank:
10/1/2010	DEBIT MEMO - CapOne	$	4,810.66			CONTROL DISBURSEMENT/CLEARED CHECKS
10/4/2010	DEBIT MEMO - CapOne	$	15,863.59			CONTROL DISBURSEMENT/CLEARED CHECKS
10/5/2010	DEBIT MEMO - CapOne	$	904.22			CONTROL DISBURSEMENT/CLEARED CHECKS
10/6/2010	DEBIT MEMO - CapOne	$	39,876.57			CONTROL DISBURSEMENT/CLEARED CHECKS
10/7/2010	DEBIT MEMO - CapOne	$	497.84			CONTROL DISBURSEMENT/CLEARED CHECKS
10/12/2010	DEBIT MEMO - CapOne	$	82,028.09			CONTROL DISBURSEMENT/CLEARED CHECKS
10/14/2010	DEBIT MEMO - CapOne	$	1,592.50			CONTROL DISBURSEMENT/CLEARED CHECKS
10/15/2010	DEBIT MEMO - CapOne	$	2,107.01			CONTROL DISBURSEMENT/CLEARED CHECKS
10/18/2010	DEBIT MEMO - CapOne	$	132,000.00			CONTROL DISBURSEMENT/CLEARED CHECKS
10/19/2010	DEBIT MEMO - CapOne	$	11,519.03			CONTROL DISBURSEMENT/CLEARED CHECKS
10/20/2010	DEBIT MEMO - CapOne	$	6,260.75			CONTROL DISBURSEMENT/CLEARED CHECKS
10/25/2010	DEBIT MEMO - CapOne	$	8,253.70			CONTROL DISBURSEMENT/CLEARED CHECKS
10/26/2010	DEBIT MEMO - CapOne	$	12,247.28			CONTROL DISBURSEMENT/CLEARED CHECKS
10/28/2010	DEBIT MEMO - CapOne	$	2,995.85			CONTROL DISBURSEMENT/CLEARED CHECKS
		$	320,957.09

In re:	MiddleBrook Pharmaceuticals, Inc.	Case No. 10-11485
	Debtor	Reporting Period: October 1 — October 31, 2010

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID
This schedule is to include all retained professional payments from case inception to current month

				Invoice Amount -		Invoice Amount -		Fees		Expenses		Objection		Check				Amount Paid				Year-To-Date
Payee	Period Covered			Fees		Expenses		Approved		Approved		Deadline		Number		Date		Fees		Expenses		Fees		Expenses
Alston & Bird LLP		4/30 - 5/31/10		$	255,194.00	$	0.00	$	255,194.00	$	0.00		7/7/2010		5082		7/21/2010	$	204,155.20	$	0.00	$	204,155.20	$	0.00
Alston & Bird LLP		4/30 - 5/31/10		$	0.00	$	5,825.95	$	0.00	$	5,825.95		7/7/2010		5085		7/22/2010	$	0.00	$	5,825.95	$	0.00	$	5,825.95
Alston & Bird LLP		6/1 - 6/30/10		$	129,621.50	$	7,762.21	$	129,621.50	$	7,762.21		8/5/2010		5107		8/12/2010	$	103,697.20	$	7,762.21	$	103,697.20	$	7,762.21
Alston & Bird LLP		7/1 - 7/31/10		$	100,767.00	$	1,689.29	$	100,767.00	$	1,689.29		9/3/2010		5170		9/8/2010	$	80,613.60	$	1,689.29	$	80,613.60	$	1,689.29
Alston & Bird LLP		8/1 - 8/31/10		$	99,230.00	$	2,430.75	$	99,230.00	$	2,430.75		10/4/2010		5243		10/7/2010	$	79,384.00	$	2,430.75	$	79,384.00	$	2,430.75
Alston & Bird LLP		4/30 - 7/31/10	*										11/1/2010		5263		10/27/2010	$	97,116.50	$	0.00	$	97,116.50	$	0.00
Alston & Bird LLP		9/1 - 9/31/10		$	104,208.00	$	285.55	$	104,208.00	$	285.55		11/2/2010		5286		11/4/2010	$	80,366.40	$	285.55	$	80,366.40	$	285.55
Alston & Bird LLP subtotal																						$	645,332.90	$	17,993.75
Bayard, P.A.		5/11 - 5/31/10		$	35,663.00	$	212.04	$	35,663.00	$	212.04		7/19/2010		5086		7/22/2010	$	28,530.40	$	212.04	$	28,530.40	$	212.04
Bayard, P.A.		6/1 - 6/30/10		$	29,506.00	$	393.24	$	28,306.00	$	393.24		8/10/2010		5142		8/17/2010	$	22,644.80	$	393.24	$	22,644.80	$	393.24
Bayard, P.A.		7/1 - 7/31/10		$	24,458.00	$	623.21	$	24,458.00	$	623.21		9/7/2010		5212		9/14/2010	$	19,566.40	$	623.21	$	19,566.40	$	623.21
Bayard, P.A.		8/1 - 8/31/10		$	14,119.00	$	366.86	$	14,119.00	$	366.86		10/7/2010		5257		10/20/2010	$	11,295.20	$	366.86	$	11,295.20	$	366.86
Bayard, P.A.		4/30 - 7/31/10	*										10/19/2010		5275		10/27/2010	$	17,685.40	$	0.00	$	17,685.40	$	0.00
Bayard, P.A.		9/1 - 9/31/10		$	10,673.50	$	287.15	$	10,673.50	$	287.15		11/2/2010		5291		11/17/2010	$	8,538.80	$	287.15	$	8,538.80	$	287.15
Bayard, P.A. subtotal																						$	108,261.00	$	1,882.50
Carella, Byrne, Bain	annuity services			$	450.00	$	6,993.00	$	450.00	$	6,993.00		N/A		5044		7/2/2010	$	450.00	$	6,993.00	$	450.00	$	6,993.00
Carella, Byrne, Bain	patent maintenance			$	50.00	$	516.00	$	50.00	$	516.00		N/A		2588		6/21/2010	$	50.00	$	516.00	$	50.00	$	516.00
Carella, Byrne, Bain subtotal																						$	500.00	$	7,509.00
Dickstein Shapiro LLP		5/11 - 5/31/10		$	134,068.50	$	4,147.20	$	134,068.50	$	4,147.20		7/19/2010		5087		7/22/2010	$	107,254.80	$	4,147.20	$	107,254.80	$	4,147.20
Dickstein Shapiro LLP		6/1 - 6/30/10		$	63,546.50	$	3,309.16	$	63,546.50	$	3,309.16		8/10/2010		5131		8/17/2010	$	50,837.50	$	3,309.16	$	50,837.50	$	3,309.16
Dickstein Shapiro LLP		7/1 - 7/31/10		$	63,076.25	$	2,223.29	$	63,076.25	$	2,223.29		9/3/2010		5191		9/8/2010	$	50,461.00	$	2,223.29	$	50,461.00	$	2,223.29
Dickstein Shapiro LLP		8/1 - 8/31/10		$	28,955.00	$	973.23	$	28,955.00	$	973.23		10/5/2010		5248		10/13/2010	$	23,164.00	$	973.23	$	23,164.00	$	973.23
Dickstein Shapiro LLP		4/30 - 7/31/10	*										10/19/2010		5264		10/27/2010	$	52,137.95	$	0.00	$	52,137.95	$	0.00
Dickstein Shapiro LLP		9/1 - 9/31/10		$	43,782.00	$	3,606.17	$	43,782.00	$	3,606.17		11/19/2010									$	0.00	$	0.00
Dickstein Shapiro LLP subtotal																						$	283,855.25	$	10,652.88
Gleacher & Company		4/30 - 7/31/10		$	660,000.00	$	52,514.48	$	660,000.00	$	52,514.48		9/7/2010	Wire			9/17/2010	$	528,000.00	$	52,514.48	$	528,000.00	$	52,514.48
Gleacher & Company		4/30 - 7/31/10	*										9/30/2010		5240		10/20/2010	$	132,000.00	$	0.00	$	132,000.00	$	0.00
Gleacher & Company subtotal																						$	660,000.00	$	52,514.48
Invotex, Inc.		5/26 - 6/30/10		$	71,248.50	$	374.04	$	71,248.50	$	374.04		8/12/2010		5149		8/27/2010	$	56,998.80	$	374.04	$	56,998.80	$	374.04
Invotex, Inc.		7/1 - 7/30/10		$	14,514.25	$	79.24	$	14,514.25	$	79.24		9/7/2010		5208		9/14/2010	$	11,611.40	$	79.24	$	11,611.40	$	79.24
Invotex, Inc.		4/30 - 7/31/10	*										10/19/2010		5267		10/27/2010	$	17,152.55	$	0.00	$	17,152.55	$	0.00
Invotex, Inc. subtotal																						$	85,762.75	$	453.28
Kurtzman Carson Consultants		4/30/2010		$	2,232.00	$	78.20	$	2,232.00	$	78.20		N/A		5029		7/1/2010	$	2,232.00	$	78.20	$	2,232.00	$	78.20
Kurtzman Carson Consultants	NYTIMES (July)			$	0.00	$	3,680.00	$	0.00	$	3,680.00		N/A	wire			7/9/2010		0		3,680.00	$	0.00	$	3,680.00
Kurtzman Carson Consultants		5/1 - 5/31/10		$	44,420.50	$	13,040.83	$	44,420.50	$	13,040.83		N/A		5080		7/21/2010	$	44,420.50	$	13,040.83	$	44,420.50	$	13,040.83
Kurtzman Carson Consultants		6/1 - 6/30/10		$	25,815.50	$	2,752.13	$	25,815.50	$	2,752.13		N/A		5096		7/27/2010	$	25,815.50	$	2,752.13	$	25,815.50	$	2,752.13
Kurtzman Carson Consultants		7/1 -7/31/10		$	20,333.00	$	5,180.49	$	20,333.00	$	5,180.49		N/A		5150		8/27/2010	$	20,333.00	$	5,180.49	$	20,333.00	$	5,180.49
Kurtzman Carson Consultants		8/1 -8/31/10		$	15,765.50	$	4,964.56	$	15,765.50	$	4,964.56		N/A		5221		9/23/2010	$	15,765.50	$	4,964.56	$	15,765.50	$	4,964.56
Kurtzman Carson Consultants		9/1 -9/31/10		$	9,943.00	$	2,478.30	$	9,943.00	$	2,478.30		N/A		5268		10/27/2010	$	9,943.00	$	2,478.30	$	9,943.00	$	2,478.30
Kurtzman Carson Consultants subtotal																						$	118,509.50	$	32,174.51

In re:	MiddleBrook Pharmaceuticals, Inc.	Case No. 10-11485
	Debtor	Reporting Period: October 1 — October 31, 2010

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID
This schedule is to include all retained professional payments from case inception to current month

				Invoice Amount -		Invoice Amount -		Fees		Expenses		Objection		Check				Amount Paid				Year-To-Date
Payee	Period Covered			Fees		Expenses		Approved		Approved		Deadline		Number		Date		Fees		Expenses		Fees		Expenses
Morris James LLP		7/1 - 7/31/10		$	49,525.00	$	256.57	$	49,525.00	$	256.57		9/20/2010		5227		9/23/2010	$	39,620.00	$	256.57	$	39,620.00	$	256.57
Morris James LLP		8/1 - 8/31/10		$	34,667.00	$	466.80	$	34,667.00	$	466.80		10/27/2010		5285		11/4/2010	$	27,733.60	$	466.80	$	27,733.60	$	466.80
Morris James LLP		9/1 - 9/31/10		$	31,957.50	$	650.33	$	31,957.50	$	650.33		11/8/2010		5302		11/17/2010	$	27,733.60	$	466.80	$	25,566.00	$	650.33
Morris James LLP subtotal																						$	92,919.60	$	1,373.70
Young Conaway Stargatt & Taylor LLP		4/30 - 5/31/10		$	41,889.00	$	0.00	$	41,889.00	$	0.00		7/16/2010		5083		7/21/2010	$	33,511.20			$	33,511.20
Young Conaway Stargatt & Taylor LLP		4/30 - 5/31/10		$	0.00	$	1,099.45	$	0.00	$	1,099.45		7/16/2010		5088		7/22/2010			$	1,099.45			$	1,099.45
Young Conaway Stargatt & Taylor LLP		6/1 - 6/30/10		$	25,033.50	$	636.75	$	25,033.50	$	636.75		8/9/2010		5129		8/12/2010	$	20,026.80	$	636.75	$	20,026.80	$	636.75
Young Conaway Stargatt & Taylor LLP		7/1 - 7/31/10		$	19,341.00	$	1,717.81	$	19,341.00	$	1,717.81		8/31/2010		5190		9/8/2010	$	15,472.80	$	1,717.81	$	15,472.80	$	1,717.81
Young Conaway Stargatt & Taylor LLP		4/30 - 7/31/10	*										10/19/2010		5274		10/27/2010	$	17,152.70	$	0.00	$	17,152.70	$	0.00
Young Conaway Stargatt & Taylor LLP		8/1 - 8/31/10		$	12,374.00	$	477.75	$	12,374.00	$	477.75		11/3/2010		5287		11/4/2010	$	9,899.20	$	477.75	$	9,899.20	$	477.75
Young Conaway Stargatt & Taylor LLP		9/1 - 9/31/10		$	19,556.50	$	1,097.91	$	19,556.50	$	1,097.91		11/12/2010		5306		11/17/2010	$	15,645.20	$	1,097.91	$	15,645.20	$	1,097.91
Young Conaway Stargatt & Taylor LLP subtotal																						$	111,707.90	$	5,029.67
Total																						$	2,106,848.90	$	129,583.77

* Denotes Payment on remaining amounts due through quarterly filings.

In re:	MiddleBrook Pharmaceuticals, Inc.	Case No. 10-11485
	Debtor	Reporting Period: October 1 — October 31, 2010

	October			Cumulative
	2010			Filing to Date
Gross Sales	$	0		$	438,100
Sales Reserves and Allowances		(154,891	)		(3,489,735	)
Net Revenue		(154,891	)		(3,051,635	)
Cost of Goods Sold		0			860,166
Salaries, Bonus & Temp Labor		49,137			3,356,136
Benefits, Payroll Taxes, Recruiting & Relocation		31,872			112,561
Subtotal: Salaries & Benefits		81,009			3,468,697
Stock-Based Compensation		0			408,171
Marketing & Advertising		0			4,011
Travel & Entertainment		689			53,874
Facilities and Equipment Related		37,862			289,262
Insurance		62,061			460,796
Distribution Expense		13,379			359,749
Office & General Lab Supplies		4,753			11,827
Consulting & Legal Fees		275,359			3,252,013
Patents & Licensing		(51,375	)		214,613
Audit, IR & Financial Fees		5,510			(49,899	)
Non-Income Taxes		15,201			28,606
Depreciation and Amortization		0			974,542
Director and SAB Fees		0			64,771
Subtotal: FTE Expenses		444,449			9,541,033
Marketing Costs		0			169,576
Direct Project Costs		0			53,114
Total Expenses		444,449			10,623,888
Income (Loss) from Operations		(599,340	)		(13,675,523	)
Interest Income		7,896			15,231
Other income (expense)		14,343			34,322
Net Income (Loss) Before Taxes		(577,101	)		(13,625,969	)
Net Income (Loss)	$	(577,093	)	$	(9,798,658	)

In re:	MiddleBrook Pharmaceuticals, Inc.	Case No. 10-11485
	Debtor	Reporting Period: October 1 — October 31, 2010

	Current			Petition
	Month			Date
Cash & Cash Equivalents	$	17,238,044		$	5,257,718
Accounts Receivable, net		5,233			(490,487	)
Inventory		0			2,213,158
Prepaid and Other Current Assets		612,310			3,397,106
Property and Equipment		0			14,341,773
Accumulated Depreciation		0			(12,460,925	)
Property and Equipment, net		0			1,880,848
Deposits and Other Assets		521,114			680,580
Intangible Assets		0			11,877,529
Accum. Amort - Intangibles		0			(2,643,218	)
Intangible Assets, net		0			9,234,311
Total Assets	$	18,376,702		$	22,173,234
Accounts Payable - post-petition		(239,953	)		0
Accrued Payable to Lilly		0			0
Accrued Professional Fees		(621,081	)		0
Accounts Payable and Accrued Expenses - Post-Petition		(868,329	)		0
Accounts Payable - pre-petion		(954,635	)		(1,214,588	)
Accrued Severance		(2,445,504	)		(281,258	)
Accrued Payable to Lilly		0			(5,252	)
Accrued Professional Fees		(29,917	)		(199,917	)
Accrued R&D Costs		0			(136,067	)
Accrued Keflex Copay Assistance		0			(9,276	)
Accrued Moxatag Copay Assistance		0			(3,705,035	)
Accrued Medicaid Rebates Payable		(31,268	)		(563,001	)
Accrued Returns		0			(1,945,797	)
Other Accrued Expenses		0			(292,773	)
Wages Payable		(228,223	)		(306,521	)
Employee Benefits Pay-401k		0			(33,339	)
Employee Benefits - Flex Spending		0			(3,899	)
Other Current Liabilities		(2,261,875	)		(4,810,772	)
Accounts Payable and Accrued Expenses - Pre-Petition		(5,951,421	)		(13,507,496	)
Deferred Contract Revenue - non-current (pre-petition)		(3,500,000	)		(11,625,000	)
Deferred Lease Expense		0			(18,340	)
Total Liabilities	$	(10,319,751	)	$	(25,150,836	)
Common Stock		(865,119	)		(865,119	)
Additional Paid in Capital		(322,373,855	)		(312,281,358	)
Retained Earnings		288,500,028			299,240,744
YTD P&L		26,681,995			16,883,336
Accumulated Deficit		315,182,022			316,124,080
Stockholders’ Equity	$	(8,056,951	)	$	2,977,602
Liabilities & Stockholders’ Equity	$	(18,376,702	)	$	(22,173,234	)

In re: MiddleBrook Pharmaceuticals, Inc.	Case No. 10-11485
Debtor	Reporting Period: October 1 — October 31, 2010

Other Post-petition liabilities
Professional bankruptcy fees estimates - equity committee counsel	$	245,000
Professional bankruptcy fees estimates - corporate and local counsel		157,081
Professional legal fees		112,000
Professional bankruptcy fees estimates - creditors’ committee cousel & FA		100,000
Professional bankruptcy fees - KCC estimate		7,000
Total of Accrued Professional Fees (acct 21210)	$	621,081

In re:	MiddleBrook Pharmaceuticals, Inc.	Case No. 10-11485
	Debtor	Reporting Period: October 1 — October 31, 2010

SUMMARY OF UNPAID POSTPETITION DEBTS

Vendor		Voucher		Current Trx
ID	Vendor Name	Number	Document Date	Amount		Document Number	Document Type	Paid Date
ALS002	Alston & Bird LLP	038621	8/31/2010	$	19,846.00	AUG 20%	Invoice
ALS002	Alston & Bird LLP	038680	9/30/2010	$	20,841.60	SEP 20%	Invoice
ALS002	Alston & Bird LLP	038681	9/30/2010	$	80,366.40	SEP 80%	Invoice		11/4/2010
ALS002	Alston & Bird LLP	038682	9/30/2010	$	285.55	SEP EXP	Invoice		11/4/2010
BAY002	Bayard, P.A.	038641	8/31/2010	$	2,823.80	AUG 20%	Invoice
BAY002	Bayard, P.A.	038685	9/30/2010	$	2,134.70	SEP 20%	Invoice
BAY002	Bayard, P.A.	038686	9/30/2010	$	8,538.80	SEP 80%	Invoice		11/17/2010
BAY002	Bayard, P.A.	038687	9/30/2010	$	287.15	SEP EXP	Invoice		11/17/2010
DEL009	Delaware Secretary of State	038665	11/1/2010	$	8,539.99	3143577 Q3 2010	Invoice		11/17/2010
DIC002	Dickstein Shapiro LLP	038634	8/31/2010	$	5,791.00	AUG 20%	Invoice
MOR008	MORRIS JAMES LLP	038563	8/30/2010	$	9,905.00	JULY FEES 20%	Invoice
MOR008	MORRIS JAMES LLP	038669	8/31/2010	$	6,933.40	AUG FEES 20%	Invoice
MOR008	MORRIS JAMES LLP	038668	8/31/2010	$	27,733.60	AUG FEES 80%	Invoice		11/4/2010
MOR008	MORRIS JAMES LLP	038670	8/31/2010	$	466.80	AUG EXP	Invoice		11/4/2010
MOR008	MORRIS JAMES LLP	038689	9/30/2010	$	6,391.50	SEP 20%	Invoice
MOR008	MORRIS JAMES LLP	038690	9/30/2010	$	25,566.00	SEP 80%	Invoice		11/17/2010
MOR008	MORRIS JAMES LLP	038691	9/30/2010	$	650.33	SEP EXP	Invoice		11/17/2010
YOU005	Young Conaway Stargatt & Taylor LLP	038700	8/31/2010	$	2,474.80	AUG 20%	Invoice
YOU005	Young Conaway Stargatt & Taylor LLP	038698	8/31/2010	$	9,899.20	AUG 80%	Invoice		11/4/2010
YOU005	Young Conaway Stargatt & Taylor LLP	038699	8/31/2010	$	477.75	AUG EXP	Invoice		11/4/2010
				$	239,953.37

In re: MiddleBrook Pharmaceuticals, Inc.	Case No. 10-11485
Debtor	Reporting Period: October 1 — October 31, 2010

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		8,540		—		—		—		—		8,540
Wages Payable (401k contributions)		—		—		—		—		—		—
Taxes Payable (payroll-related taxes)		—		—		—		—		—		—
Rent/Leases-Building		—		—		—		—		—		—
Rent/Leases-Equipment		—		—		—		—		—		—
Secured Debt/Adequate Protection Payments		—		—		—		—		—		—
Professional Fees		—				145,062		86,351		—		231,413
Amounts Due to Insiders*		—		—		—		—		—		—
Other: __________________________		—		—		—		—		—		—
Other: __________________________		—		—		—		—		—		—
Total Postpetition Debts	$	8,540		—	$	145,062	$	86,351		—	$	239,953

Explain how and when the Debtor intends to pay any past-due postpetition debts.

Professional fees are awaiting court approval or include remaining 20% of fees.

* “Insider” is defined in 11 U.S.C. Section 101(31).

FORM MOR-4
(04/07)

In re: MiddleBrook Pharmaceuticals, Inc.	Case No. 10-11485
Debtor	Reporting Period: October 1 — October 31, 2010

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

Accounts Receivable Reconciliation	Amount
Total Accounts Receivable at the beginning of the reporting period	$	199,158.13
+ Amounts billed during the period		—
- Amounts collected during the period		(31,597.62	)
- Other adjustments during period		(162,327.64	)
Total Accounts Receivable at the end of the reporting period		5,232.87

Accounts Receivable Aging	Amount
0 - 30 days old		—
31 - 60 days old		—
61 - 90 days old		3,759.36
91+ days old		1,473.51
Total Accounts Receivable		5,232.87
Amount considered uncollectible (Bad Debt)
Accounts Receivable (Net)	$	5,232.87

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
5. Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.		X

Debtor sold certain assets pursuant to the Order Establishing Procedures for the Sale and/or abandonment of Certain Miscellaneous Property [Docket No. 263] dated September 7, 2010 (the “Order”). See the page titled “Sale of Assets “ for a listing of the miscellaneous property sold during the current period pursuant to the Order

FORM MOR-5
(04/07)

In re: MiddleBrook Pharmaceuticals, Inc.	Case No. 10-11485
Debtor	Reporting Period: October 1 — October 31, 2010

SALE OF ASSETS

Date of		Relationship				Purchase
Purchase	Purchaser	to Debtor	Equipment	Model #	Serial #	Amount
10/1/2010	Mukaram Aziz	None	Bookshelf			$	50.00
10/1/2010	Mukaram Aziz	None	3 Keyboards			$	15.00
10/1/2010	Mukaram Aziz	None	Box of Network Cables			$	35.00
10/1/2010	Patrick Onuoha	None	INFocus Projector	IN24		$	150.00
10/1/2010	Mukaram Aziz	None	Reception Couch & Table & Mirror			$	150.00
10/6/2010	Trey Tubbs	None	Lenovo X200 Laptop	X200	L3-ACG1H	$	500.00
10/15/2010	Ben Hui	None	Lenovo X200 Laptop	X200	L3-ACG1F	$	500.00
10/15/2010	MarkOne	None	Lenovo X200 Laptop	X200	LV-012R9	$	552.50
10/15/2010	MarkOne	None	Lenovo X200 Laptop	X200	LV-012RD	$	552.50
10/15/2010	MarkOne	None	Lenovo X200 Laptop	X200	LV-012R8	$	552.50
10/15/2010	MarkOne	None	Lenovo X200 Laptop	X200	LV-01NPM	$	552.50
10/15/2010	MarkOne	None	Lenovo X200 Laptop	X200	LV-01NP	$	552.50
10/15/2010	MarkOne	None	HP LaserJet P4014N Printer	P4014N		$	340.00
10/15/2010	MarkOne	None	3 - InFocus IN1100 Projectors	IN1100		$	1,147.50
10/15/2010	MarkOne	None	19 - Samsung SyncMaster 920WM Monitors	920WM		$	1,372.75
10/20/2010	Walco	None	2 - Left Return Desk, 4 drawer Credenza and 6 Shelf Bookcase			$	1,500.00
10/20/2010	Walco	None	2 - Right Return Desk, 4 drawer Credenza and 6 Shelf Bookcase			$	1,500.00
10/20/2010	Walco	None	2 - Desk, Side Desk, 4 Drawer Credenza and 6 Shelf Bookcase			$	1,500.00
10/20/2010	Walco	None	5 - Five Drawer Lateral File Cabinet			$	500.00
10/20/2010	Walco	None	3 - InFocus IN1100 Projectors	IN1100		$	1,200.00
10/20/2010	Robert Warren	None	7-Samsung/Viewsonic 17" Monitors	Various		$	105.00
10/20/2010	Robert Warren	None	4 Keyboards			$	20.00
10/20/2010	Robert Warren	None	Power Strip			$	20.00
10/20/2010	Robert Warren	None	PowerDsine 3006 POE Network Hub	3006 POE		$	75.00
10/25/2010	Chandler Coy	None	HP Color LaserJet 5500DTN Printer	5500DTN		$	400.00
10/27/2010	Nick Conder	None	Proxima DP6870	DP6870		$	275.00
10/27/2010	Nick Conder	None	ASK Proxima M6	M6		$	150.00
10/27/2010	Nick Conder	None	HP EO1013 KVM	EO1013		$	75.00
					Total:	$	14,342.75