Exhibit 99.1
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
In re: Essential Therapeutics, Inc., et al Case No. 03-11317 (MFW)
Reporting Period:May 1, 2003 through May 31, 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.
Document Explanation
REQUIRED DOCUMENTS Form No. Attached 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)
- ------------------------------------------- Reporting Period:May 1, 2003
Debtor through May 31, 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
OPER. PAYROLL TAX PETTY CASH RESTRICTED INVESTMENT
CASH BEGINNING OF MONTH 2,353,685.93 56,248.17 - 667.24 1,571,644.66 14,498,867.62
RECEIPTS
CASH SALES - - - - - -
ACCOUNTS RECEIVABLE - - - - - -
LOANS AND ADVANCES 100,466.00 - - - - -
SALE OF ASSETS 37,022.00 - - - - -
OTHER (ATTACH LIST) 551,602.63 - - - - 45,278.50
TRANSFERS (FROM DIP ACCTS) - 280,375.34 - - - -
------------ ---------- --------- ------------- ------------ -------------
TOTAL RECEIPTS 689,090.63 280,375.34 - - - 45,278.50
DISBURSEMENTS
GROSS PAYROLL 212,377.60 82,077.98
PAYROLL TAXES -
SALES, USE, & OTHER TAXES 269.15
INVENTORY PURCHASES -
SECURED/ RENTAL/ LEASES 5,124.91
INSURANCE -
ADMINISTRATIVE 3,491.36 2,513.28
SELLING -
OTHER (ATTACH LIST) 230,209.66 120,140.13
-
OWNER DRAW * -
TRANSFERS (TO DIP ACCTS) 280,375.34
-
PROFESSIONAL FEES -
U.S. TRUSTEE QUARTERLY FEES -
COURT COSTS - - - - - -
------------ ---------- --------- ------------- ------------ -------------
TOTAL DISBURSEMENTS 731,848.02 202,218.11 - - - 2,513.28
NET CASH FLOW (42,757.39) 78,157.23 - - - 42,765.22
(RECEIPTS LESS DISBURSEMENTS)
CASH - END OF MONTH 2,310,928.54 134,405.40 - 667.24 1,571,644.66 14,541,632.84
CURRENT MONTH CUMULATIVE FILING TO DATE
ACTUAL PROJECTED ACTUAL PROJECTED
CASH BEGINNING OF MONTH 18,481,113.62 18,484,973.00 18,481,113.62 18,484,973.00
RECEIPTS
CASH SALES - - - -
ACCOUNTS RECEIVABLE - - - -
LOANS AND ADVANCES 100,466.00 100,466.00 100,466.00 100,466.00
SALE OF ASSETS 37,022.00 37,022.00 37,022.00 37,022.00
OTHER (ATTACH LIST) 596,881.13 540,660.00 596,881.13 540,660.00
TRANSFERS (FROM DIP ACCTS) 280,375.34 - 280,375.34 -
------------- ------------- ------------- -------------
TOTAL RECEIPTS 1,014,744.47 678,148.00 1,014,744.47 678,148.00
DISBURSEMENTS
GROSS PAYROLL 294,455.58 326,627.00 294,455.58 326,627.00
PAYROLL TAXES - 48,994.00 - 48,994.00
SALES, USE, & OTHER TAXES 269.15 10,000.00 269.15 10,000.00
INVENTORY PURCHASES - - - -
SECURED/RENTAL/LEASES 5,124.91 57,750.00 5,124.91 57,750.00
INSURANCE - - - -
ADMINISTRATIVE 6,004.64 13,500.00 6,004.64 13,500.00
SELLING - - - -
OTHER (ATTACH LIST) 350,349.79 368,659.00 350,349.79 368,659.00
- - - -
OWNER DRAW * - - - -
TRANSFERS (TO DIP ACCTS) 280,375.34 - 280,375.34 -
- - - -
PROFESSIONAL FEES - 200,000.00 - 200,000.00
U.S. TRUSTEE QUARTERLY FEES - - - -
COURT COSTS - - - -
------------- ------------- ------------- ---------------
TOTAL DISBURSEMENTS 936,579.41 1,025,530.00 936,579.41 1,025,530.00
NET CASH FLOW 78,165.06 (347,382.00) 78,165.06 (347,382.00)
(RECEIPTS LESS DISBURSEMENTS)
CASH - END OF MONTH 18,559,278.68 18,137,591.00 18,559,278.68 18,137,591.00
* 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 $ 936,579.41
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS $ 280,375.34
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts) $ -
------------
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES $ 656,204.07
FORM MOR-1
(9/99)
In re: Essential Therapeutics, Inc., et al
Continuation Sheet for Initial MOR-1
Other Receipts
Operating Investment Total
May-03 ---------- -----
---------
Other Receipts
Investment income $ - $ 44,398.60 $ 44,398.60
Unrealized Gain on investments $ - $ 879.90 $ 879.90
Cobra insurance reimbursement $ 3,507.78 $ - $ 3,507.78
Interest income $ 209.69 $ - $ 209.69
IR travel reimbursement $ 7,224.71 $ - $ 7,224.71
Sublease income-Naxcor $ 50,358.95 $ - $ 50,358.95
Fujisawa R&D reimbursement $ 75,000.00 $ - $ 75,000.00
Fujisawa FTE reimbursement $ 375,000.00 $ - $ 375,000.00
J&J Patent reimbursement $ 40,301.50 $ - $ 40,301.50
-------------- ------------ --------------
Total Other Receipts $ 551,602.63 $ 45,278.50 $ 596,881.13
============== ============ ==============
In re: Essential Therapeutics, Inc., et al
Continuation Sheet for Initial MOR-1
Other Disbursements
Operating Payroll Investment Total
May-03 ------- ---------- -----
---------
Other Disbursements
Severance $ 37,360.49 $ 120,140.13 $ - $ 157,500.62
Consultants/Temporary Help $ 35,844.30 $ - $ - $ 35,844.30
Decontamination Costs $ 52,778.95 $ - $ - $ 52,778.95
Contract Services $ 90,972.80 $ - $ - $ 90,972.80
R&D and Facility costs $ 9,760.71 $ - $ - $ 9,760.71
Travel expenses $ 3,492.41 $ - $ - $ 3,492.41
-------------- -------------- ---------- --------------
Total Other Disbursements $ 230,209.66 $ 120,140.13 $ - $ 350,349.79
============== ============== ========== ==============
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
In re: Essential Therapeutics, Inc., et al. Case No. 03-11317 (MFW)
Debtor Chapter: 11
Balance as of May 31, 2003
Fleet Bank
Account Number: 9429246901 $ 1,648,096.19
Fleet Bank
Account Number: 9427759535 $ 360,084.81
Fleet Bank
Account Number: 9412142452 $ -
Fleet Bank
Account Number: 9429240139 $ 302,747.54
Silicon Valley Bank
Account Number: 05027950-71 $ 127,935.66
Silicon Valley Bank
Account Number: 05027950-72 $ 6,469.74
Fleet Investment Account
Account Number: 0006537770 $ 14,541,632.84
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 667.24
Account detail available upon request
In re: Essential Therapeutics, Inc., et al Case No. 03-11317 (MFW)
- -------------------------------------------
Debtor Reporting Period: May 1, 2003
through May 31, 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.
Cumulative
REVENUES May 2003 Filing to Date
Gross Revenues $ 231,204.00 $ 231,204.00
Less: Returns and Allowances - -
--------------- ---------------
Net Revenue 231,204.00 231,204.00
OPERATING EXPENSES
Payroll Costs
Salaries & Wages 329,834.15 329,834.15
Payroll Taxes 18,983.11 18,983.11
Employee Insurance Benefits 27,201.27 27,201.27
Other Employee Benefits 5,226.11 5,226.11
Stock Compensation Exp - EE 49,550.51 49,550.51
Management Incentive Bonus (10,370.65) (10,370.65)
--------------- ---------------
Total Payroll Costs 420,424.50 420,424.50
Operational Costs
Software/Comp Supls (less then $2.5K) 576.45 576.45
Printing & Reproduction 247.30 247.30
Laboratory Supplies 2,035.41 2,035.41
Chemicals 2,645.16 2,645.16
Postage & Freight 1,939.06 1,939.06
Depreciation - Furniture/Fixtures 2,202.42 2,202.42
Depreciation - Computer Equip 4,126.42 4,126.42
Depreciation - Software 121.74 121.74
Depreciation - Equipment 369.77 369.77
Amortization - L/H Improvements 27,447.29 27,447.29
Sales Tax on Capital Lease 288.71 288.71
Furniture/Equipment Rental 1,136.79 1,136.79
Business Travel 12,249.07 12,249.07
Meals & Entertainment 854.48 854.48
Other G&A Expenses 291.67 291.67
Conference, Seminar & Training 2,585.00 2,585.00
--------------- ---------------
Total Operating Costs 59,116.74 59,116.74
Outside Services
Consultants & Honoraria 55,400.54 55,400.54
Contract Services 81,323.70 81,323.70
Deferred Comp - Consultants 1,832.00 1,832.00
Investor Relations 2,696.75 2,696.75
Insurance - D&O 26,458.17 26,458.17
Dues & Subscriptions 6,221.01 6,221.01
Books (74.25) (74.25)
Clinical Development Insurance 1,026.42 1,026.42
Legal - Corporate 100,000.00 100,000.00
Legal - Patent 60,000.00 60,000.00
Temporary Help 1,000.00 1,000.00
Bank Charges/Payroll Fees 2,618.60 2,618.60
--------------- ---------------
Total Outside Services 338,502.94 338,502.94
Facilities
Rent 205,184.76 205,184.76
Utilities 17,714.11 17,714.11
Property & Occupancy Taxes 6,607.67 6,607.67
Business Insurance 23,912.03 23,912.03
Business Taxes 269.15 269.15
Telephone/Fax/Networking 10,164.26 10,164.26
Janitorial 9,029.10 9,029.10
Safety/Hazardous Mat'l Monitor 707.00 707.00
Repair & Maint - Bldg 2,654.63 2,654.63
Repair & Maint - Equipment 714.87 714.87
Software License & Maint 2,701.35 2,701.35
--------------- ---------------
Total Facilities 279,658.93 279,658.93
Restructuring Expenses 206,355.74 206,355.74
--------------- ---------------
TOTAL OPERATING EXPENSES 1,304,058.85 1,304,058.85
--------------- ---------------
OPERATING INCOME (1,072,854.85) (1,072,854.85)
Other Income/Expenses
Interest Income 40,827.24 40,827.24
Interest Expense (7,014.34) (7,014.34)
Gain/(Loss) on FA Disposals 2,034.67 2,034.67
Other Expense 0.13 0.13
--------------- ---------------
Total Other Income and Expenses 35,847.70 35,847.70
NET INCOME BEFORE TAXES (1,037,007.15) (1,037,007.15)
Income Tax Provision - -
--------------- ---------------
Income Tax Provision - -
NET INCOME $ (1,037,007.15) $ (1,037,007.15)
=============== ===============
FORM MOR-2
(9/99)
In re: Essential Therapeutics, Inc., et al Case No. 03-11317 (MFW)
- -------------------------------------------
Debtor Reporting Period: May 1, 2003
through May 31, 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 BOOK VALUE AT PETITION DATE
ASSETS May 31, 2003 OF May 1, 2003
Current Assets
Cash, Cash Equivalents & Investments
Petty Cash $ 667.24 $ 667.24
Operating Cash 1,948,960.60 1,854,762.68
Cash - Money Market 361,967.94 498,923.25
Cash - Payroll 127,935.66 47,271.56
Sect 125 & FSA 6,469.74 8,976.61
Cash Equivalents 236,336.63 175,618.31
Short Term Investments 5,698,565.17 5,751,826.08
Long Term Investments 8,606,731.01 8,575,282.93
---------------- ---------------
Total Cash, Cash Equivalents & Investments 16,987,633.99 16,913,328.66
Accounts Receivable
Accounts Receivable - Trade 221,026.30 586,327.80
Accounts Receivable - Other 608,333.30 2,666.67
---------------- ---------------
Total Receivables 829,359.60 588,994.47
Prepaid Expenses
Prepaid Consulting 503.75 503.75
Prepaid Property Insurance 67,274.22 91,186.25
Prepaid Medical Insurance 19,083.64 48,075.33
Prepaid Workers Compensation 10,438.63 15,653.22
Prepaid Clinical Trial Insurance 5,645.27 6,671.69
Prepaid Life Insurance - 1,290.71
Prepaid Dir & Off Insurance 1,274,706.11 1,301,164.28
Prepaid Contracts - Software 20,429.51 23,130.86
Prepaid Subscriptions & Dues 20,318.10 24,343.16
Prepaid Rent 281,921.00 523,229.00
Prepaid Expenses - Other 423,564.37 495,173.92
Prepaid Property Tax 6,607.67 13,215.34
---------------- ---------------
Total Prepaid Expenses 2,130,492.27 2,543,637.51
Other Current Assets 274,660.00 5,018.71
Assets Held For Sale 760,514.47 760,514.47
---------------- ---------------
Total Current Assets 20,982,660.33 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 8,263,383.23 8,271,446.09
L/H Improvements 3,046,223.03 3,046,223.03
---------------- ---------------
Total Capital Expenditures 11,722,306.38 11,728,873.63
Accumulated Depreciation
Accum Depr - Furniture & Fixtures (11,652.01) (9,449.59)
Accum Depr - Computers (178,880.69) (174,754.27)
Accum Depr - Software (182.61) (60.87)
Accum Depr - Equipment (6,898,346.49) (6,901,873.76)
Accum Depr - L/H Improvements (131,507.46) (104,060.17)
---------------- ---------------
Total Accumulated Depreciation (7,220,569.26) (7,190,198.66)
Assets Held for Sale - Contra (760,514.47) (760,514.47)
---------------- ---------------
Total Net Fixed Assets 3,741,222.65 3,778,160.50
---------------- ---------------
Deposits 5,080.82 279,740.82
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 $ 27,918,825.34 $ 28,764,756.64
================ ===============
LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities
In re: Essential Therapeutics, Inc., et al Case No. 03-11317 (MFW)
- -------------------------------------------
Debtor Reporting Period: May 1, 2003
through May 31, 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 BOOK VALUE AT PETITION DATE
ASSETS May 31, 2003 OF May 1, 2003
Current Liabilities
Accounts Payable-Prepetition $ 279,208.16 $ 239,077.04
Accounts Payable-Postpetition 97,927.52 -
---------------- ---------------
Total Accounts Payable 377,135.68 239,077.04
Accrued Compensation
Accrued Salaries & P/R Taxes 41,402.93 7,517.30
Accrued Vacation & Sick Time 123,301.73 141,124.06
Accrued Sect 125 & FSA Deduction 1,330.87 1,809.36
Accrued Bonus & Incentive Compensation 150,215.81 166,140.75
---------------- ---------------
Total Accrued Compensation 316,251.34 316,591.47
Accrued Restructuring 02 - S/T 643,818.33 644,503.33
Accrued Restructuring 03 - S/T 922,290.00 944,998.32
Deferred Revenue 166,662.67 249,996.67
Other Current Liabilities
Accrued Curr Liab - Other 174,156.66 174,156.66
Accrued Legal - General 100,000.00 -
Accrued Legal - Patents 71,072.58 46,358.70
Accrued Investor Relations 88,781.59 108,700.76
Accrued Property Taxes 67,982.22 67,982.22
Accrued Sales & Use Tax - CA 2,663.04 195.41
Current Portion - Capital Leases 49,391.76 45,146.03
Current Portion - Notes Payable 181,399.83 179,902.33
---------------- ---------------
Total Other Current Liabilities 735,447.68 622,442.11
Total Current Liabilities 3,161,605.70 3,017,608.94
Long-term Liabilities
Long Term Portion - Capital Leases 122,707.93 130,600.47
Long Term Portion - Notes Payable 417,745.92 434,572.97
Accrued Rent-Long Term 387,514.27 372,778.56
---------------- ---------------
Total Long-Term Liabilities 927,968.12 937,952.00
---------------- ---------------
Total Liabilities 4,089,573.82 3,955,560.94
---------------- ---------------
Convert Redeem PS-Series B 53,902,147.00 53,902,147.00
Stockholders' Equity
Common Stock 18,939.94 18,939.94
Additional Paid-In Capital 104,286,042.89 104,286,042.89
Notes Receivable from Stockholders (150,744.53) (155,545.09)
Unrealized Gain/(Loss) Mkt Sec 260,721.13 259,841.23
Deferred Compensation (1,105,987.88) (1,157,370.39)
Retained Earnings - Prior Yrs (122,314,980.85) (122,314,980.85)
Retained Earnings - Current Yr (11,066,886.18) (10,029,879.03)
---------------- ---------------
Total Stockholders' Equity (30,072,895.48) (29,092,951.30)
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 27,918,825.34 $ 28,764,756.64
================ ===============
$ - $ -
In re: Essential Therapeutics, Inc., et al Case No. 03-11317 (MFW)
- -------------------------------------------
Debtor Reporting Period: May 1, 2003
through May 31, 2003
Essential Therapeutics - Consolidated
Balance Sheet - Detail
Financial Stmts - By Business Unit
For the Period from May 1, 2003 to May 31, 2003
Essential Althexis Maret Eliminations Grand Total
Current Assets
Cash, Cash Equivalents & Investments
Petty Cash 417.24 250.00 - - 667.24
Operating Cash 1,648,096.19 (1,883.13) 302,747.54 - 1,948,960.60
Cash - Money Market - 361,967.94 - - 361,967.94
Cash - Payroll 127,935.66 - - - 127,935.66
Sect 125 & FSA 6,469.74 - - - 6,469.74
Cash Equivalents 230,336.63 6,000.00 - - 236,336.63
Short Term Investments 5,698,565.17 - - - 5,698,565.17
Long Term Investments 8,606,731.01 - - - 8,606,731.01
-------------- ------------- ------------ ------------- --------------
Total Cash, Cash Equivalents & Investments 16,318,551.64 366,334.81 302,747.54 - 16,987,633.99
Accounts Receivable
Accounts Receivable - Trade 221,026.30 - - - 221,026.30
Accounts Receivable - Other 608,333.30 - - - 608,333.30
Intercompany Receivable 24,231,432.79 516,692.34 9,947.60 (24,758,072.73) -
--------------- ------------- ------------ ------------- --------------
Total Receivables 25,060,792.39 516,692.34 9,947.60 (24,758,072.73) 829,359.60
Prepaid Expenses
Prepaid Consulting 503.75 - - - 503.75
Prepaid Property Insurance 3,039.97 64,234.25 - - 67,274.22
Prepaid Medical Insurance 19,083.64 - - - 19,083.64
Prepaid Workers Compensation 9,787.16 651.47 - - 10,438.63
Prepaid Clinical Trial Insurance - - 5,645.27 - 5,645.27
Prepaid Dir & Off Insurance - 1,274,706.11 - - 1,274,706.11
Prepaid Contracts - Software 18,880.86 1,548.65 - - 20,429.51
Prepaid Subscriptions & Dues - 20,318.10 - - 20,318.10
Prepaid Rent 281,921.00 - - - 281,921.00
Prepaid Expenses - Other 370,320.83 7,740.64 45,502.90 - 423,564.37
Prepaid Property Tax 6,607.67 - - - 6,607.67
-------------- ------------- ------------ ------------- --------------
Total Prepaid Expenses 710,144.88 1,369,199.22 51,148.17 - 2,130,492.27
Other Current Assets 274,660.00 - - - 274,660.00
Assets Held For Sale 540,000.00 220,514.47 - - 760,514.47
-------------- ------------- ------------ ------------- --------------
Total Current Assets 42,904,148.91 2,472,740.84 363,843.31 (24,758,072.73) 20,982,660.33
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 7,603,172.61 660,210.62 - - 8,263,383.23
L/H Improvements - - 3,046,223.03 - - 3,046,223.03
-------------- ------------- ------------ ------------- --------------
Total Capital Expenditures 7,723,043.01 3,999,263.37 - - 11,722,306.38
Accumulated Depreciation
Accum Depr - Furniture & Fixtures - (11,652.01) - - (11,652.01)
Accum Depr - Computers (95,375.08) (83,505.61) - - (178,880.69)
Accum Depr - Software - (182.61) - - (182.61)
Accum Depr - Equipment (6,733,328.97) (165,017.52) - - (6,898,346.49)
Accum Depr - L/H Improvements - (131,507.46) - - (131,507.46)
-------------- ------------- ------------ ------------- --------------
Total Accumulated Depreciation (6,828,704.05) (391,865.21) - - (7,220,569.26)
Assets Held for Sale - Contra (540,000.00) (220,514.47) - - (760,514.47)
-------------- ------------- ------------ ------------- --------------
Total Net Fixed Assets 354,338.96 3,386,883.69 - - 3,741,222.65
-------------- ------------- ------------ ------------- --------------
Deposits - 5,080.82 - - 5,080.82
Restricted Cash - Long Term 1,471,644.66 100,000.00 - - 1,571,644.66
Other Non-Current Assets
Notes Receivable - 150,744.53 - (150,744.53) -
Employee Loans - Long Term 92,000.00 - - - 92,000.00
Goodwill 1,526,216.88 - - 0 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) 150,744.53 - 1,571,715.87 1,618,216.88
-------------- ------------- ------------ ------------- --------------
TOTAL ASSETS 44,625,889.01 6,115,449.88 363,843.31 (23,186,356.86) 27,918,825.34
============== ============= ============ ============= ==============
In re: Essential Therapeutics, Inc., et al Case No. 03-11317 (MFW)
- -------------------------------------------
Debtor Reporting Period: May 1, 2003
through May 31, 2003
Essential Therapeutics - Consolidated
Balance Sheet - Detail
Financial Stmts - By Business Unit
For the Period from May 1, 2003 to May 31, 2003
Essential Althexis Maret Eliminations Grand Total
LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities
Current Liabilities
Accounts Payable-Prepetition 123,774.56 46,297.31 109,136.29 - 279,208.16
Accounts Payable-Postpetition 33,170.27 40,859.38 23,897.87 - 97,927.52
-------------- ------------- ------------ ------------- --------------
Total Accounts Payable 156,944.83 87,156.69 133,034.16 - 377,135.68
Accrued Compensation
Accrued Salaries & P/R Taxes 41,402.91 0.02 - - 41,402.93
Accrued Vacation & Sick Time 77,125.00 46,176.73 - - 123,301.73
Accrued Sect 125 & FSA Deduction 1,330.87 - - 1,330.87
Accrued Bonus & Incentive Compensation - 150,215.81 - - 150,215.81
-------------- ------------- ------------ ------------- --------------
Total Accrued Compensation 119,858.78 196,392.56 - - 316,251.34
Accrued Restructuring 02 - S/T - 643,818.33 - - 643,818.33
Accrued Restructuring 03 - S/T 922,290.00 - - - 922,290.00
Deferred Revenue 166,662.67 - - - 166,662.67
Other Current Liabilities
Accrued Curr Liab - Other - 172,656.66 1,500.00 - 174,156.66
Accured Legal - General - 100,000.00 - - 100,000.00
Accrued Legal - Patents 60,000.00 5,000.00 6,072.58 - 71,072.58
Accrued Investor Relations - 88,781.59 - - 88,781.59
Accrued Property Taxes 67,982.22 - - - 67,982.22
Accrued Sales & Use Tax - CA 2,463.63 - 199.41 - 2,663.04
Current Portion - Capital Leases 49,391.76 - - - 49,391.76
Current Portion - Notes Payable - 181,399.83 - - 181,399.83
-------------- ------------- ------------ ------------- --------------
Total Other Current Liabilities 179,837.61 547,838.08 7,771.99 - 735,447.68
-------------- ------------- ------------ ------------- --------------
Total Current Liabilities 1,545,593.89 1,475,205.66 140,806.15 - 3,161,605.70
-------------- ------------- ------------ ------------- --------------
Long-term Liabilities
Long Term Portion - Capital Leases 122,707.93 - - - 122,707.93
Long Term Portion - Notes Payable - 417,745.92 - - 417,745.92
Accrued Rent - Long Term - 387,514.27 - 0 387,514.27
Intercompany Payable - 18,247,263.67 6,510,809.06 (24,758,072.73) -
-------------- ------------- ------------ ------------- --------------
Total Long-Term Liabilities 122,707.93 19,052,523.86 6,510,809.06 (24,758,072.73) 927,968.12
-------------- ------------- ------------ ------------- --------------
Total Liabilities 1,668,301.82 20,527,729.52 6,651,615.21 (24,758,072.73) 4,089,573.82
-------------- ------------- ------------ ------------- --------------
Convert Redeem PS-Series B 53,902,147.00 - - - 53,902,147.00
Stockholders' Equity
Common Stock 18,939.94 - - - 18,939.94
Additional Paid-In Capital 104,286,042.89 - - - 104,286,042.89
Net Equity at Acquisition - 228,862.60 (1,951,323.00) 1,722,460.40 -
Notes Receivable from Stockholders - - - (150,744.53) (150,744.53)
Unrealized Gain/(Loss) Mkt Sec 260,721.13 - - - 260,721.13
Deferred Compensation (1,105,987.88) - - - (1,105,987.88)
Retained Earnings - Prior Yrs (107,568,751.06) (11,211,664.09) (3,534,565.70) - (122,314,980.85)
Retained Earnings - Current Yr (6,835,524.83) (3,429,478.15) (801,883.20) - (11,066,886.18)
-------------- ------------- ------------ ------------- --------------
Total Stockholders' Equity (10,944,559.81) (14,412,279.64) (6,287,771.90) 1,571,715.87 (30,072,895.48)
-------------- ------------- ------------ ------------- --------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY 44,625,889.01 6,115,449.88 363,843.31 (23,186,356.86) 27,918,825.34
============== ============= ============ ============= ==============
In re: Essential Therapeutics, Inc., et al Case No. 03-11317 (MFW)
- -------------------------------------------
Debtor Reporting Period: May 1, 2003
through May 31, 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 Amount Ending
Tax Withheld or Amount Date Check No. Tax
Liability Accrued Paid Paid or EFT Liability
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 May 31, 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 $ 97,927.52 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: May 1, 2003
through May 31, 2003
The Althexis Company Inc.
-------------------------
American Express $ 10,612.15
Biodirect $ 324.50
Robert C. Blanks $ 9,671.14
Citiside Limo $ 1,009.20
Columbia Insurance Agency $ 133.45
Conigliaro Industries Inc. $ 105.60
CSC $ 224.00
Data Evolution $ 1,000.00
Foley Food and Vending Co. $ 659.99
New York Times $ 46.00
Tim Noyes $ 486.92
Premiere Conferencing $ 84.37
Primus Telecommunication $ 22.00
David P. Rosenbaum, Ph.D. $ 12,240.90
RR Donnelley Receivables, Inc. $ 1,752.00
UPS $ 384.11
Verizon $ 1,742.29
Xerox Corporation $ 360.76
-----------
$ 40,859.38
Maret Corporation
-----------------
Abt Associates, Inc. $ 3,025.00
Dow Pharmaceutical Sciences $ 20,872.87
-----------
$ 23,897.87
Essential Therapeutics, Inc.
----------------------------
Alpha Innotech Corp $ 106.30
Bank of America $ 2,276.32
Bio-Rad Laboratories $ 197.21
City of Mountain View $ 1,150.62
EnVectra $ 6,329.00
LabWorks Equipment Service, Inc. $ 379.46
MCI $ 2,314.32
Orkin Exterminating Company $ 276.35
PG&E $ 15,842.30
Qiagen, Inc. $ 26.37
Redwood City Electric, Inc. $ 496.50
Scientific Environmental Labs $ 707.00
Tosop Biosep LLC $ 271.40
Unitrans International Corp $ 228.00
Unifirst Corporation $ 229.12
Vargas Gardening Service, Inc. $ 300.00
Wise Waste & Environmental $ 2,040.00
-----------
$ 33,170.27
Total outstanding AP $ 97,927.52
===========
In re: Essential Therapeutics, Inc., et al Case No. 03-11317 (MFW)
- -------------------------------------------
Debtor Reporting Period: May 1, 2003
through May 31, 2003
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
Accounts Receivable Reconciliation Amount
Total Accounts Receivable at the beginning of the reporting period $ 586,327.80
+ Amounts billed during the period $ 125,000.00
- - Amounts collected during the period $(490,301.50)
------------
Total Accounts Receivable at the end of the reporting period $ 221,026.30
============
Accounts Receivable Aging Amount
0 - 30 days old $ 125,000.00
31 - 60 days old $ 96,026.30
61 - 90 days old $ -
91+ days old $ -
------------
Total Accounts Receivable $ 221,026.30
Amount considered uncollectible (Bad Debt) $ -
------------
Accounts Receivable (Net) $ 221,026.30
============
DEBTOR QUESTIONNAIRE
Must be completed each month Yes No
1. Have any assets been sold or transferred outside the normal course of X
business this reporting period? If yes, provide an explanation below.
2. Have any funds been disbursed from any account other than a debtor in X
possession account this reporting period? If yes, provide an explanation
below.
3. Have all postpetition tax returns been timely filed? If no, provide an X
explanation below.
4. Are workers compensation, general liability and other necessary insurance X
coverages in effect? If no, provide an explanation below.
FORM MOR-5
(9/99)