Exhibit 99.1
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
| In re Trident Microsystems, Inc., et al.1 | Case No. 12-10069 (CSS) (Jointly Admin.) Reporting Period: September 2012 |
MONTHLY OPERATING REPORT
REQUIRED DOCUMENTS | Form No. | Document Attached | Explanation Attached | Affidavit / Supplement Attached | ||||
Schedule of Cash Receipts and Disbursements | MOR-1 | Yes | ||||||
Bank Reconciliation (or copies of debtor’s bank reconciliations) | MOR-1a | No | Not required per agreement with UST. | |||||
Schedule of Professional Fees Paid | MOR-1b | Yes | ||||||
Copies of bank statements | Yes | Cash balance detail attached per agreement with UST. | ||||||
Cash disbursements journals | Yes | Summary document only | ||||||
Statement of Operations | MOR-2 | Yes | ||||||
Balance Sheet | MOR-3 | Yes | ||||||
Status of Postpetition Taxes | MOR-4 | No | Yes | |||||
Copies of IRS Form 6123 or payment receipt | No | Yes | ||||||
Copies of tax returns filed during reporting period | No | Yes | ||||||
Summary of Unpaid Post-petition Debts | MOR-4 | Yes | ||||||
Listing of aged accounts payable | MOR-4 | Yes | Summary document only | |||||
Accounts Receivable Reconciliation and Aging | MOR-5 | Yes | Summary document only | |||||
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.
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Signature of Debtor | Date | |||
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Signature of Joint Debtor | Date | |||
/s/ Andrew Hinkelman | October 31, 2012 | |||
Signature of Authorized Individual* | Date | |||
Andrew Hinkelman | Interim Chief Executive Officer | |||
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. |
| 1 | The Debtors are the following two entities (the last four digits of their respective taxpayer ID numbers, if any, follow in parentheses): Trident Microsystems, Inc. (6584) and Trident Microsystems (Far East) Ltd. |
| In re Trident Microsystems, Inc., et al. | Case No. 12-10069 (CSS) (Jointly Admin.) | |
| Reporting Period: September 2012 |
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
The companies cash reporting systems are based on the calendar week. As a result, cash receipts and disbursements for the period ended September 30, 2012 include activity beginning the week of September 3, 2012.
TMI—United States | Actuals 9/3/2012 - 9/30/2012 | Budget 9/3/2012 - 9/30/2012 | Variance 9/3/2012 - 9/30/2012 | Actuals Case to Date | ||||||||||||
Beginning Cash Balance | $ | 321,745 | $ | 591,842 | $ | (270,097 | ) | $ | 977,445 | |||||||
Inflows | ||||||||||||||||
Trade Receivable | $ | — | $ | — | $ | — | $ | 720,626 | ||||||||
TSA Reimbursements | — | — | — | — | ||||||||||||
Sale Proceeds | — | — | — | — | ||||||||||||
Other Inflows | 3,086 | — | 3,086 | 525,488 | ||||||||||||
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Total Inflows | $ | 3,086 | $ | — | $ | 3,086 | $ | 1,246,114 | ||||||||
Outflows | ||||||||||||||||
Payroll | $ | (76,468 | ) | $ | (52,336 | ) | $ | (24,131 | ) | $ | (12,284,197 | ) | ||||
Severance | (55,279 | ) | — | (55,279 | ) | (311,167 | ) | |||||||||
Rent | (50,630 | ) | (15,000 | ) | (35,630 | ) | (1,094,125 | ) | ||||||||
Accounts Payable | — | — | — | (1,546,755 | ) | |||||||||||
Professional Fees | (123,802 | ) | (85,690 | ) | (38,112 | ) | (2,143,185 | ) | ||||||||
Other Expenses | (190,883 | ) | (188,584 | ) | (2,299 | ) | (5,189,340 | ) | ||||||||
Interest Pmt & Capital Charge | — | — | — | — | ||||||||||||
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Total Outflows | $ | (497,062 | ) | $ | (341,610 | ) | $ | (155,452 | ) | $ | (22,568,770 | ) | ||||
Restructuring Outflows | ||||||||||||||||
Professional and Advisory Fees | $ | (3,404,459 | ) | $ | (2,293,142 | ) | $ | (1,111,316 | ) | $ | (18,313,305 | ) | ||||
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Total Restructuring Outflows | $ | (3,404,459 | ) | $ | (2,293,142 | ) | $ | (1,111,316 | ) | $ | (18,313,305 | ) | ||||
IC Transfers / Adjustments | $ | 4,236,670 | $ | 4,000,000 | $ | 236,670 | $ | 39,318,498 | ||||||||
Net Change in Cash | 338,235 | 1,365,248 | (1,027,013 | ) | (317,464 | ) | ||||||||||
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Ending Cash Balance—Unrestricted | $ | 659,981 | $ | 1,957,090 | $ | (1,297,110 | ) | $ | 659,981 | |||||||
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2
| In re Trident Microsystems, Inc., et al. | Case No. 12-10069 (CSS) (Jointly Admin.) | |
| Reporting Period: September 2012 |
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
TMFE - Cayman Islands | Actuals 9/3/2012 - 9/30/2012 | Budget 9/3/2012 - 9/30/2012 | Variance 9/3/2012 - 9/30/2012 | Actuals Case to Date | ||||||||||||
Beginning Cash Balance | $ | 73,397,550 | $ | 85,811,630 | $ | (12,414,080 | ) | $ | 14,659,170 | |||||||
Inflows | ||||||||||||||||
Trade Receivable | $ | — | $ | — | $ | — | $ | — | ||||||||
TSA Reimbursements | 2,376,170 | 655,000 | 1,721,170 | 10,248,035 | ||||||||||||
Sale Proceeds | — | — | — | 85,470,232 | ||||||||||||
Other Inflows | 248 | — | 248 | 13,831,222 | ||||||||||||
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Total Inflows | $ | 2,376,418 | $ | 655,000 | $ | 1,721,418 | $ | 109,549,489 | ||||||||
Outflows | ||||||||||||||||
Accounts Payable | $ | (429,437 | ) | $ | (242,067 | ) | $ | (187,369 | ) | $ | (60,264,639 | ) | ||||
Other Expenses | (14,470 | ) | — | (14,470 | ) | (196,268 | ) | |||||||||
Interest Pmt & Capital Charge | — | — | — | — | ||||||||||||
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Total Outflows | $ | (443,907 | ) | $ | (242,067 | ) | $ | (201,839 | ) | $ | (60,460,908 | ) | ||||
Restructuring Outflows | ||||||||||||||||
Professional and Advisory Fees | $ | (334,658 | ) | $ | (148,000 | ) | $ | (186,658 | ) | $ | (2,416,099 | ) | ||||
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Total Restructuring Outflows | $ | (334,658 | ) | $ | (148,000 | ) | $ | (186,658 | ) | $ | (2,416,099 | ) | ||||
IC Transfers / Adjustments1 | $ | (4,234,567 | ) | $ | (4,000,000 | ) | $ | (234,567 | ) | $ | 9,429,184 | |||||
Net Change in Cash | (2,636,714 | ) | (3,735,067 | ) | 1,098,353 | 56,101,666 | ||||||||||
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Ending Cash Balance—Unrestricted | $ | 70,760,836 | $ | 82,076,563 | $ | (11,315,727 | ) | $ | 70,760,836 | |||||||
Restricted Cash in Escrow | 3,031,369 | — | 3,031,369 | 3,031,369 | ||||||||||||
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Total Ending Cash Balance | $ | 73,792,205 | $ | 82,076,563 | $ | (8,284,358 | ) | $ | 73,792,205 | |||||||
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PERIOD DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES
| TMFE | TMI | TOTAL | ||||||||||
Total Disbursements For Calculating U.S. Trustee Quarterly Fees | $ | 778,564 | $ | 3,901,521 | $ | 4,680,085 | ||||||
Less: Transfers To Debtor In Possession Accounts | — | — | — | |||||||||
Plus: Transfers To Non-Debtor Subsidiaries | — | — | — | |||||||||
Plus: Estate Disbursements Made By Outside Sources | — | — | — | |||||||||
Total Disbursements For Calculating U.S. Trustee Quarterly Fees | $ | 778,564 | $ | 3,901,521 | $ | 4,680,085 | ||||||
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| 1 | Note cumulative amount represents gross transfers out of $4,879,067 offset by transfers into TMFE of $644,500. |
3
| In re Trident Microsystems, Inc., et al. | Case No. 12-10069 (CSS) (Jointly Admin.) | |
| Reporting Period: September 2012 |
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID
Payee | Period Covered | Amount Covered | Payor | Check/Wire | Amount Paid | Year-To-Date | ||||||||||||||||||||||
| Number | Date | Fees | Expenses | Fees | Expenses | |||||||||||||||||||||||
Alvarez & Marsal | 7/1/12 -7/31/12 & Second Interim Fee | $ | 129,223.51 | TMI | 75702 & 75713 | 9/20/12 & 9/26/12 | $ | 129,141.50 | $ | 82.01 | $ | 611,671.60 | $ | 19,741.67 | ||||||||||||||
Bayard, P.A. | 7/1/12 - 7/31/12 & Second Interim Fee | 76,136.39 | TMI | 75703 & 75714 | 9/20/12 | 74,412.80 | 1,723.59 | 657,110.40 | 14,693.39 | |||||||||||||||||||
Dewey & Leboeuf LLP | Second Interim Fee | 21,226.30 | TMI | 75716 | 9/26/12 | 21,226.30 | — | 453,808.25 | 9,075.10 | |||||||||||||||||||
DLA Piper | 7/1/12 - 7/31/12 & Second Interim Fee | 1,040,699.95 | TMI | 9038 | 9/27/12 | 1,016,175.85 | 24,524.10 | 5,922,722.98 | 261,744.23 | |||||||||||||||||||
Epping Hermann | Second Interim Fee | 3,086.20 | TMI | 9044 | 9/27/12 | 3,086.20 | — | 147,624.58 | 5,213.16 | |||||||||||||||||||
FTI Consulting, Inc. | 6/1/12 - 6/30/12 | 383,197.22 | TMI | 9032 | 9/13/12 | 363,709.00 | 19,488.22 | 2,768,382.00 | 177,068.08 | |||||||||||||||||||
Imperial Capital | 6/1/12 - 6/30/12 & Second Interim Fee | 248,021.02 | TMI | 91984 & 75721 | 9/6/12 - 9/26/12 | 245,000.00 | 3,021.02 | 948,387.10 | 81,858.23 | |||||||||||||||||||
Kurtzman Carson Consultants | 7/1/12 - 7/31/12 | 109,505.03 | TMI | 9033 | 9/13/12 | 109,505.03 | — | 350,915.53 | 287,858.96 | |||||||||||||||||||
Pachulski Stang Ziehl | 5/1/12 - 6/30/12 & Second Interim Fee | 349,226.42 | TMI | 71986 & 72002 & 72728 | 9/6/12 & 9/12/12 & 9/26/12 | 331,315.60 | 17,910.82 | 1,031,578.75 | 58,421.10 | |||||||||||||||||||
Proskauer Rose | 5/14/12 - 7/31/12 & Second Interim Fee | 232,953.64 | TMI | 9028 & 9041 & 75734 | 9/6/12 & 9/27/12 | 231,318.90 | 1,634.74 | 231,318.90 | 1,634.74 | |||||||||||||||||||
PricewaterhouseCoopers | First & Second Interim Fees | 263,536.90 | TMI | 9039 | 9/27/12 | 263,536.90 | — | 1,317,684.50 | 8,988.05 | |||||||||||||||||||
Quinn Emanuel | 7/1/12 - 7/31/12 & First & Second Interim Fees | 144,124.17 | TMI | 72004 & 75709 & 75729 | 912/12 & 9/26/12 | 143,190.15 | 934.02 | 321,394.05 | 4,908.38 | |||||||||||||||||||
Union Square Advisors | Audio & Demod Sale Fee | 403,522.00 | TMI | 9036 | 9/6/12 | 400,000.00 | 3,522.00 | 2,500,000.00 | 69,472.48 | |||||||||||||||||||
Maples and Calder | 8/1/12 - 8/31/12 | 185,371.90 | TMFE | 6798337 | 9/14/12 | 177,079.50 | 8,292.40 | 1,511,497.58 | 83,064.02 | |||||||||||||||||||
Zolfo Cooper | 8/1/12 - 8/31/12 | 149,286 | TMFE | 685392 | 9/25/12 | 139,554 | 9,732 | 729,160 | 34,686 | |||||||||||||||||||
4
| In re Trident Microsystems, Inc., et al. | Case No. 12-10069 (CSS) (Jointly Admin.) | |
| Reporting Period: September 2012 |
SCHEDULE OF CASH ACCOUNT BALANCES1
Company | Bank Name | Bank Account # | Book Balance (USD) | |||||
Trident Microsystems, Inc. | Bank of America | xxxxxxx-xxx5067 | $ | — | ||||
Trident Microsystems, Inc. | California Bank & Trust MP | xxx-xxx5089 | 22,805 | |||||
Trident Microsystems, Inc. | California Bank & Trust Checking | xxx-xxxx8271 | 638,446 | |||||
Trident Microsystems, Inc. | California Bank & Trust (payroll) | xxx-xxxx8270 | (4,161 | ) | ||||
Trident Microsystems, Inc. | E-Trade | xxxx-2507 | 2,890 | |||||
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Total | $ | 659,981 | ||||||
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Company | Bank Name | Bank Account # | Book Balance (USD) | |||||
Trident Microsystems (Far East), Ltd. | Bank of America | xxxx-xxxxx-028 | $ | — | ||||
Trident Microsystems (Far East), Ltd. | Bank of America | xxxx-xxxxx-010 | — | |||||
Trident Microsystems (Far East), Ltd. | Bank of America | xxx-xxxx-036 | — | |||||
Trident Microsystems (Far East), Ltd. | Bank of America | xxx-xxxx-044 | 6,551,115 | |||||
Trident Microsystems (Far East), Ltd. | Bank of America | xxx-xxxx-052 | 4,854 | |||||
Trident Microsystems (Far East), Ltd. | Bank of America | xxx-xxxx-060 | 524,280 | |||||
Trident Microsystems (Far East), Ltd. | California Bank & Trust - Checkling AC | xxx-xxxx3970 | 62,723,193 | |||||
Trident Microsystems (Far East), Ltd. | California Bank & Trust - Money Plus | xxx-xxx3709 | 957,395 | |||||
Trident Microsystems (Far East), Ltd. | Bank of America | xxxxxxx-xxx5059 | — | |||||
Trident Microsystems (Far East), Ltd. | Wilmington Trust - Sigma Escrow | xxxxx0-000 | 1,517,843 | |||||
Trident Microsystems (Far East), Ltd. | Wilmington Trust - Entropic Escrow | xxxxx2-000 | 1,513,526 | |||||
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Total | $ | 73,792,205 | ||||||
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| 1 | Schedule reflects book balance at each Debtor as of September 30, 2012. |
BANK RECONCILIATIONS
Bank reconciliations have been prepared for each account listed above.
/s/ Andrew Hinkelman | October 31, 2012 | |||
| Andrew Hinkelman | Date | |||
| Interim Chief Executive Officer |
5
| In re Trident Microsystems, Inc., et al. | Case No. 12-10069 (CSS) (Jointly Admin.) | |
| Reporting Period: September 2012 |
STATEMENT OF OPERATIONS
| TMFE | TMI | |||||||||||||||
| September 2012 | Cumulative Filing to Date | September 2012 | Cumulative Filing to Date | |||||||||||||
Gross Revenue | ||||||||||||||||
Third Party1 | $ | 230,556 | $ | 2,241,519 | $ | — | $ | 1,561,239 | ||||||||
Affiliates | 784,932 | 71,692,811 | — | 21,863,458 | ||||||||||||
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Net Revenues | $ | 1,015,488 | $ | 73,934,331 | $ | — | $ | 23,424,697 | ||||||||
Cost of Revenues | ||||||||||||||||
Third Party through TMHK1 | $ | 7,155 | $ | 46,618,901 | $ | 50,464 | $ | 2,538,897 | ||||||||
Affiliates | 3,623,825 | 64,964,382 | — | — | ||||||||||||
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Total Cost of Revenues | $ | 3,630,980 | $ | 111,583,283 | $ | 50,464 | $ | 2,538,897 | ||||||||
Gross Profit | $ | (2,615,492 | ) | $ | (37,648,952 | ) | $ | (50,464 | ) | $ | 20,885,800 | |||||
Research and development expenses1, 2 | $ | — | $ | 8,578,157 | $ | (21,330 | ) | $ | 9,139,641 | |||||||
Selling, general and administrative expenses2 | 627 | 409,646 | (643,349 | ) | 12,662,977 | |||||||||||
Insider Compensation3 | — | — | 25,000 | 1,709,080 | ||||||||||||
Restructuring Charges | — | — | 74,567 | 303,810 | ||||||||||||
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Total operating expenses | 627 | 8,987,803 | (565,112 | ) | 23,815,509 | |||||||||||
Income (loss) from operations | $ | (2,616,119 | ) | $ | (46,636,755 | ) | $ | 514,648 | $ | (2,929,709 | ) | |||||
Gain (loss) on investment | $ | — | $ | (5 | ) | $ | — | $ | — | |||||||
Gain (loss) on acquisition/sale1 | — | (726,181 | ) | — | 1,513,772 | |||||||||||
Interest and other income (expense), net (see detail) | (60,799 | ) | 7,456,889 | 2 | (759,303 | ) | ||||||||||
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Income (loss) before income taxes | $ | (2,676,918 | ) | $ | (39,906,052 | ) | $ | 514,650 | $ | (2,175,240 | ) | |||||
Provision for (benefit from) income taxes | — | 129 | (1,921,752 | ) | ||||||||||||
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Net Income (Loss) Before Reorganization Items | $ | (2,676,918 | ) | $ | (39,906,180 | ) | $ | 514,650 | $ | (253,488 | ) | |||||
REORGANIZATION ITEMS | ||||||||||||||||
Professional Fees | $ | 706,865 | $ | 2,406,960 | $ | 2,823,142 | $ | 17,109,131 | ||||||||
U.S. Trustee Quarterly Fees | — | 30,000 | — | 26,000 | ||||||||||||
Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet) | — | — | — | — | ||||||||||||
Gain (Loss) from Sale of Equipment | — | — | — | — | ||||||||||||
Other Reorganization Expenses | — | 117,558 | — | — | ||||||||||||
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Total Reorganization Expenses | $ | 706,865 | $ | 2,554,518 | $ | 2,823,142 | $ | 17,135,131 | ||||||||
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Net Profit (Loss) | $ | (3,383,783 | ) | $ | (42,460,698 | ) | $ | (2,308,492 | ) | $ | (17,388,619 | ) | ||||
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Adjustment for Affiliate Receivable | — | — | — | (8,588,827 | ) | |||||||||||
Net Profit / (Loss) after Adjustment1 | $ | (3,383,783 | ) | $ | (42,460,698 | ) | $ | (2,308,492 | ) | $ | (25,977,446 | ) | ||||
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BREAKDOWN OF "OTHER" CATEGORIES | ||||||||||||||||
Interest and other income (expense), net | ||||||||||||||||
Realized Forex Gain/Loss | $ | (502 | ) | $ | 122,302 | $ | — | $ | — | |||||||
Unrealized Forex Gain/Loss | (48,767 | ) | 842,530 | — | — | |||||||||||
Other Income | (11,677 | ) | 6,642,137 | — | 10,255 | |||||||||||
Interest Expenses | — | (209,001 | ) | — | — | |||||||||||
Loss on Disposal of Assets | — | — | — | (769,567 | ) | |||||||||||
Currency Remeasurement Adj. | — | 41,490 | — | — | ||||||||||||
Interest Earned | 148 | 17,431 | 2 | 9 | ||||||||||||
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Total | $ | (60,799 | ) | $ | 7,456,889 | $ | 2 | $ | (759,303 | ) | ||||||
| 1 | Cumulative amounts include the effect of adjusting and post-closing entries made to properly reflect activity in prior months. |
| 2 | TMI amount reflects reversal of accruals. |
| 3 | Does not include payments made to insiders on account of trade payables. “Insider” is defined in 11 U.S.C. Section 101(31). |
6
| In re Trident Microsystems, Inc., et al. | Case No. 12-10069 (CSS) (Jointly Admin.) | |
| Reporting Period: September 2012 |
BALANCE SHEET
| TMFE | TMI | |||||||||||||||
| Book Value at September 2012 | Book Value on Petition Date | Book Value at September 2012 | Book Value on Petition Date | |||||||||||||
ASSETS | ||||||||||||||||
Current assets | ||||||||||||||||
Cash and cash equivalents | $ | 73,792,242 | $ | 14,033,731 | $ | 660,653 | $ | 1,254,662 | ||||||||
Accounts receivable, net1 | 120,000 | 1,000,000 | (88,042 | ) | 1,314,661 | |||||||||||
Accounts receivable from related parties | 2,030,173 | 1,996,988 | 234,787 | 234,787 | ||||||||||||
Inventory | 27,921 | 11,433,394 | — | — | ||||||||||||
Note receivable from related party2 | — | 20,884,003 | — | |||||||||||||
Prepaid expenses and other current assets (see detail) | 2,828,410 | 6,541,527 | 1,244,270 | 1,551,933 | ||||||||||||
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Total current assets | $ | 78,798,746 | $ | 55,889,643 | $ | 2,051,668 | $ | 4,356,043 | ||||||||
Property and equipment, net | $ | — | $ | 391,732 | $ | — | $ | 2,327,797 | ||||||||
Intangible Assets, net | — | 43,913,014 | — | — | ||||||||||||
Affiliates Receivable | 17,098,654 | 43,295,725 | 74,327,207 | 95,861,080 | ||||||||||||
Other Non-current Assets (see detail) | 56,149,638 | 73,815,092 | 197,964,440 | 198,408,481 | ||||||||||||
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Total Assets | $ | 152,047,038 | $ | 217,305,206 | $ | 274,343,315 | $ | 300,953,401 | ||||||||
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LIABILITIES AND OWNER EQUITY | ||||||||||||||||
LIABILITIES NOT SUBJECT TO COMPROMISE | ||||||||||||||||
Accounts Payable | $ | 267,683 | $ | — | $ | 18,574 | $ | — | ||||||||
Taxes Payable | 180,554 | — | — | — | ||||||||||||
Wages Payable | — | — | — | — | ||||||||||||
Notes Payable | — | — | — | — | ||||||||||||
Rent/Leases – Building/Equipment | — | — | — | — | ||||||||||||
Secured Debt/Adequate Protection Payments | — | — | — | — | ||||||||||||
Professional Fees | — | — | 35,093 | — | ||||||||||||
Affiliates Payable | 6,023,047 | — | 3,125,706 | — | ||||||||||||
Amounts Due to Insiders3 | 1,443,512 | — | 270,500 | — | ||||||||||||
Other Post-petition Liabilities (see detail) | 23,364,169 | — | 2,824,707 | — | ||||||||||||
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TOTAL POST-PETITION LIABILITIES | $ | 31,278,965 | $ | — | $ | 6,274,580 | $ | — | ||||||||
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition) | ||||||||||||||||
Secured Debt | $ | — | $ | — | $ | — | $ | — | ||||||||
Priority Debt4 | 156,728 | — | 23,933,811 | 24,009,745 | ||||||||||||
Unsecured Debt | 130,126,643 | 184,359,805 | 7,134,426 | 13,324,750 | ||||||||||||
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TOTAL PRE-PETITION LIABILITIES | $ | 130,283,371 | $ | 184,359,805 | $ | 31,068,237 | $ | 37,334,495 | ||||||||
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TOTAL LIABILITIES | $ | 161,562,336 | $ | 184,359,805 | $ | 37,342,817 | $ | 37,334,495 | ||||||||
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OWNER EQUITY | ||||||||||||||||
Capital Stock | $ | 1,282 | $ | 1,282 | $ | (198,085 | ) | $ | (197,998 | ) | ||||||
Additional Paid-In Capital | 171,714,557 | 171,714,557 | 356,114,870 | 356,755,746 | ||||||||||||
Retained Earnings – Pre-Petition | (138,770,438 | ) | (138,770,438 | ) | (92,938,842 | ) | (92,938,842 | ) | ||||||||
Retained Earnings – Post-petition5 | (42,460,699 | ) | — | (25,977,445 | ) | — | ||||||||||
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NET OWNER EQUITY | (9,515,298 | ) | 32,945,401 | 237,000,498 | 263,618,906 | |||||||||||
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TOTAL LIABILITIES AND OWNERS EQUITY | $ | 152,047,038 | $ | 217,305,206 | $ | 274,343,315 | $ | 300,953,401 | ||||||||
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| 1 | Credit balance is offset by outstanding receivables in TMHK. |
| 2 | TMFE balance at petition date was settled as part of the Entropic and Sigma sales. |
| 3 | “Insider” is defined in 11 U.S.C. Section 101(31). |
| 4 | TMI balance reflects long-term provision for contingent tax liability which will be written off. |
| 5 | Retained earnings balance includes the effect of adjusting and post-closing entries made to properly reflect activity in prior months. |
7
| In re Trident Microsystems, Inc., et al. | Case No. 12-10069 (CSS) (Jointly Admin.) | |
| Reporting Period: September 2012 |
BALANCE SHEET
| TMFE | TMI | |||||||||||||||
| Book Value at September 2012 | Book Value on Petition Date | Book Value at September 2012 | Book Value on Petition Date | |||||||||||||
BREAKDOWN OF “OTHER” CATEGORIES | ||||||||||||||||
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||||||||||||||||
Deferred Tax Asset | $ | — | $ | — | $ | 301,133 | $ | 301,133 | ||||||||
Prepaid Income Taxes | — | — | — | (1,910,771 | ) | |||||||||||
Other Prepaid & Receivables | 2,757,466 | 3,673,512 | 943,136 | 3,161,571 | ||||||||||||
VAT Receivable | 70,944 | 2,868,014 | — | — | ||||||||||||
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Total | $ | 2,828,410 | $ | 6,541,527 | $ | 1,244,270 | $ | 1,551,933 | ||||||||
OTHER NON-CURRENT ASSETS | ||||||||||||||||
Deferred Taxes Non-Current | $ | — | $ | — | $ | (2,629,465 | ) | $ | (2,629,465 | ) | ||||||
Other Deferred Charges | 2 | 2 | — | — | ||||||||||||
Long Term Equity Investments | 807,254 | 807,259 | — | — | ||||||||||||
Investment in Subsidiaries | 55,342,382 | 55,342,382 | 200,504,592 | 200,504,592 | ||||||||||||
Other Non-Current Assets | — | 17,665,449 | 89,313 | 533,355 | ||||||||||||
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Total | $ | 56,149,638 | $ | 73,815,092 | $ | 197,964,440 | $ | 198,408,481 | ||||||||
OTHER POSTPETITION LIABILITIES | ||||||||||||||||
Accrued Employee Expense | $ | — | $ | — | $ | 189,557 | $ | — | ||||||||
Receipts Accrual | 13,961 | — | — | — | ||||||||||||
Accrued Professional Fees | — | — | 2,259,426 | — | ||||||||||||
Accrued Restructuring | — | — | 304,568 | — | ||||||||||||
Deferred Rent | — | — | — | — | ||||||||||||
Customer Prepaid | 2,916,667 | — | — | — | ||||||||||||
Accrued NRE | 16,550 | — | — | — | ||||||||||||
Accrued Royalties | (406,998 | ) | — | — | — | |||||||||||
Other Accrued Expenses | 216,463 | — | — | — | ||||||||||||
Other Liabilities | 4,472 | — | 71,157 | — | ||||||||||||
Sigma Payable | 5,936,389 | — | — | — | ||||||||||||
Entropic Payable | — | — | — | — | ||||||||||||
Deferred Margin1 | 14,666,667 | — | — | — | ||||||||||||
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Total | $ | 23,364,169 | $ | — | $ | 2,824,707 | $ | — | ||||||||
| 1 | TMFE deferred margin will be written off in a subsequent reporting period. |
8
| In re Trident Microsystems, Inc., et al. | Case No. 12-10069 (CSS) (Jointly Admin.) | |
| Reporting Period: September 2012 |
STATUS OF POSTPETITION TAXES
I hereby certify that: (1) all state and federal postpetition taxes and estimates due and owing for the period of September 2012 for Trident Microsystems, Inc. and Trident Microsystems (Far East) Ltd. have been paid, (2) all state and federal tax returns for the period of September 2012 have been duly completed and submitted on behalf of Trident Microsystems, Inc. and Trident Microsystems (Far East) Ltd. or (3) to the extent that any payments have not been made or tax returns have not been submitted an extension has been obtained from the appropriate state or federal agency.
/s/ Andrew Hinkelman | October 31, 2012 | |||
| Andrew Hinkelman | Date | |||
| Interim Chief Executive Officer |
SUMMARY OF UNPAID POSTPETITION DEBTS
| Number of Days Past Due | ||||||||||||||||||||||||
Trident Microsystems, Inc. (TMI) | Current | 0-30 | 31-60 | 61-90 | Over 90 | Total | ||||||||||||||||||
Accounts Payable | $ | 9,075 | $ | 9,500 | $ | — | $ | — | $ | — | $ | 18,575 | ||||||||||||
Wages Payable | — | — | — | — | — | — | ||||||||||||||||||
Taxes Payable | — | — | — | — | — | — | ||||||||||||||||||
Rent/Leases-Building | — | — | — | — | — | — | ||||||||||||||||||
Secured Debt/Adequate Protection Payments | — | — | — | — | — | — | ||||||||||||||||||
Professional Fees | 35,093 | — | — | — | — | 35,093 | ||||||||||||||||||
Affiliates Payable | — | (1,086,842 | ) | 540,844 | 942,818 | 2,728,886 | 3,125,706 | |||||||||||||||||
Amounts Due to Insiders* | — | — | — | — | 270,500 | 270,500 | ||||||||||||||||||
Other Accrued Payable | 2,824,707 | — | — | — | — | 2,824,707 | ||||||||||||||||||
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Total Postpetition Debts | $ | 2,868,874 | $ | (1,077,342 | ) | $ | 540,844 | $ | 942,818 | $ | 2,999,386 | $ | 6,274,581 | |||||||||||
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| Number of Days Past Due | ||||||||||||||||||||||||
Trident Microsystems (Far East), Ltd. | Current | 0-30 | 31-60 | 61-90 | Over 90 | Total | ||||||||||||||||||
Accounts Payable | $ | 111,676 | $ | 122,520 | $ | 92,437 | $ | 41,230 | $ | (100,181 | ) | $ | 267,683 | |||||||||||
Wages Payable | — | — | — | — | — | — | ||||||||||||||||||
Taxes Payable | 8,064 | 38,216 | 13,867 | 120,406 | — | 180,554 | ||||||||||||||||||
Rent/Leases-Building | — | — | — | — | — | — | ||||||||||||||||||
Secured Debt/Adequate Protection Payments | — | — | — | — | — | — | ||||||||||||||||||
Professional Fees | — | — | — | — | — | — | ||||||||||||||||||
Affiliates Payable | (3,091,175 | ) | (10,020,021 | ) | (350,126 | ) | 370,043 | 19,114,325 | 6,023,047 | |||||||||||||||
Amounts Due to Insiders* | — | (58,702 | ) | 39,784 | 76,387 | 1,386,043 | 1,443,512 | |||||||||||||||||
Other Accrued Payable | 23,629,751 | (592,778 | ) | 97,222 | (670,617 | ) | 900,591 | 23,364,169 | ||||||||||||||||
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Total Postpetition Debts | $ | 20,658,317 | $ | (10,510,764 | ) | $ | (106,815 | ) | $ | (62,550 | ) | $ | 21,300,777 | $ | 31,278,965 | |||||||||
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Explain how and when the Debtor intends to pay any past-due postpetition debts:
Debts will be paid in accordance with the court-approved cash management order.
| * | “Insider” is defined in 11 U.S.C. Section 101(31). |
9
| In re Trident Microsystems, Inc., et al. | Case No. 12-10069 (CSS) (Jointly Admin.) | |
| Reporting Period: September 2012 |
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
| TMI | TMFE | |||||||
Accounts Receivable Reconciliation | ||||||||
Total Accounts Receivable at the beginning of the reporting period | $ | 149,986 | $ | 2,162,040 | ||||
+ Amounts billed during the period | — | 230,556 | ||||||
- Amounts collected during the period | 3,241 | 242,423 | ||||||
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Total Accounts Receivable at the end of the reporting period | $ | 146,745 | $ | 2,150,173 | ||||
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Accounts Receivable Aging | ||||||||
0 - 30 days old | $ | — | $ | 2,030,173 | ||||
31 - 60 days old | — | — | ||||||
61 - 90 days old | — | 120,000 | ||||||
91+ days old | 146,745 | — | ||||||
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Total Accounts Receivable | $ | 146,745 | $ | 2,150,173 | ||||
Amount considered uncollectible (Bad Debt) | — | — | ||||||
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Accounts Receivable (Net) | $ | 146,745 | $ | 2,150,173 | ||||
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DEBTOR QUESTIONNAIRE
| 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 | |||||||
10
