EX-99.1 2 c06120exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
         
In re
  MiddleBrook Pharmaceuticals, Inc.   Case No. 10-11485
 
  Debtor   Reporting Period: August 1 — August 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        
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
  September 20, 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: August 1 — August 31, 2010
CERTIFICATIONS
A. Bank Reconciliation Certification
The undersigned verifies that, to my knowledge, all of the Debtors’ August 31, 2010 bank balances have been reconciled in an accurate and timely manner.
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
  September 20, 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: August 1 — 31, 2010
MOR 1
                                 
    Current Month     Cumulative Filing to Date  
    Actual     Forecast     Actual     Forecast  
 
                                
Beginning Date
   1-Aug-10   1-Aug-10   3-May-10   3-May-10
Ending Date
   31-Aug-10   31-Aug-10   31-Aug-10   31-Aug-10
 
                                
Cash — Beginning Balance
   $ 17,552,575     $ 17,551,015     $ 5,257,718     $ 5,269,539  
 
                                
Receipts
                                
Lockbox
   $ 285,464     $ 0     $ 601,881     $ 274,859  
Misc Deposit
   $ 1,748,813     $ 1,710,000     $ 17,072,001     $ 18,664,000  
 
                        
Total Receipts
   $ 2,034,277     $ 1,710,000     $ 17,673,882     $ 18,938,859  
 
                                
Operating Disbursements
                                
Gleacher
   $ 0     $ 0     $ 0     $ 0  
Cardinal Co-Pay Redemptions
   $ 0     $ 0     $ 0     $ 0  
Dr Directory
   $ 0     $ 0     $ (47,005 )   $ (96,831 )
Legal & Deal fees
   $ (209,308 )   $ (132,123 )   $ (683,753 )   $ (574,203 )
KCC LLC
   $ (25,513 )   $ (25,513 )   $ (25,513 )   $ (25,513 )
Creditors Committee Counsel & FA
   $ (57,373 )   $ (134,557 )   $ (57,373 )   $ (274,702 )
Equity Committee Counsel
   $ 0     $ 0     $ 0     $ 0  
Other Professional Fees
   $ 0     $ 0     $ 0     $ 0  
Payroll
   $ (387,908 )   $ (423,250 )   $ (1,038,058 )   $ (1,271,216 )
Benefits
   $ (77,657 )   $ (77,657 )   $ (77,657 )   $ (77,657 )
Severance
   $ 0     $ 0     $ 0     $ 0  
Vacation Payout
   $ 0     $ 0     $ 0     $ 0  
Invoices in A/P Aging
   $ (84,745 )   $ (109,621 )   $ (1,158,400 )   $ (1,077,993 )
Misc (TX rent, Insurance, ICS)
   $ (62,194 )   $ (59,036 )   $ (162,313 )   $ (159,436 )
Other
   $ (2,989 )   $ 0     $ (1,006,502 )   $ (1,164,458 )
voided checks
   $ 0     $ 0     $ 4,138          
 
                        
Total Operating Disbursements
   $ (907,687 )   $ (961,758 )   $ (4,252,435 )   $ (4,722,009 )
 
                        
 
                                
Net Operating Cash Flow
   $ 1,126,590     $ 748,242     $ 13,421,447     $ 14,216,850  
 
                        
 
                                
Non-Operating Disbursements
                                
Capex
                                
Professional Fees
                                
 
                        
Total Non-Operating Disbursements
   $ 0     $ 0     $ 0     $ 0  
 
                        
 
                                
Net Operating Cash Flow Before Financing
   $ 1,126,590     $ 748,242     $ 13,421,447     $ 14,216,850  
 
                        
 
                                
Financing Activities
                                
Interest Payments
                                
 
                        
Financing Activities
   $ 0     $ 0     $ 0     $ 0  
 
                                
Cash Flow
   $ 1,126,590     $ 748,242     $ 13,421,447     $ 14,216,850  
 
                        
 
                                
Ending Cash Balance (per books)
   $ 18,679,165     $ 18,299,257     $ 18,679,165     $ 19,486,389  
 
                        
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)
         
TOTAL DISBURSEMENTS
   $ (907,687 )
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
   $ (907,687 )
       

 

 

 

         
In re:
  MiddleBrook Pharmaceuticals, Inc.   Case No. 10-11485
 
  Debtor   Reporting Period: August 1 — 31, 2010
Disbursements Journal
Checks cut during period
                         
GL Posting       Checkbook     CM Trx        
Date   Source Document   Amount     Number   Voided   Paid ToRcvd From
8/5/2010
   PMCHK   $ 3,286.00     5104   No   ExecuSuites I-270, Inc.
8/5/2010
   PMCHK   $ 1,151.63     5105   No   VSP — (AT)
8/9/2010
   PMCHK   $ 77,657.00     5106   No   United Healthcare Insurance Co.
8/12/2010
   PMCHK   $ 111,459.41     5107   No   Alston & Bird LLP
8/12/2010
   PMCHK   $ 1,050.00     5108   No   American Stock Transfer & Trust Co
8/12/2010
   PMCHK   $ 76.27     5109   No   AT Conference
8/12/2010
   PMCHK   $ 811.71     5110   No   AT&T Mobility
8/12/2010
   PMCHK   $ 839.77     5111   No   A T & T 8174909174/8174908790
8/12/2010
   PMCHK   $ 57.85     5112   No   AT&T
8/12/2010
   PMCHK   $ 718.77     5113   No   ATT
8/12/2010
   PMCHK   $ 991.17     5114   No   Avaya, inc.
8/12/2010
   PMCHK   $ 39.89     5115   No   Robin N. Belsaas
8/12/2010
   PMCHK   $ 2,580.51     5116   No   Brad Cole
8/12/2010
   PMCHK   $ 465.00     5117   No   Corporation Service Company
8/12/2010
   PMCHK   $ 193.27     5118   No   Department of Veterans Affairs
8/12/2010
   PMCHK   $ 88.00     5119   No   Excel Micro
8/12/2010
   PMCHK   $ 1,050.00     5120   No   FDA Export Certificate Program
8/12/2010
   PMCHK   $ 1,093.75     5121   No   Lynne B. Marton
8/12/2010
   PMCHK   $ 974.00     5122   No   Pure Compliance
8/12/2010
   PMCHK   $ 42,568.28     5123   No   QPharma Corp
8/12/2010
   PMCHK   $ 111.12     5124   No   New Jersey Wraparound Drug Rebate
8/12/2010
   PMCHK   $ 195.00     5125   No   Cynthia Tirpak
8/12/2010
   PMCHK   $ 293.43     5126   No   Dr. Donald J. Treacy
8/12/2010
   PMCHK   $ 33.96     5127   No   Verizon Business
8/12/2010
   PMCHK   $ 150.00     5128   No   WebEx Communications Inc.
8/12/2010
   PMCHK   $ 20,663.55     5129   No   Young Conaway Stargatt & Taylor LLP
8/17/2010
   PMCHK   $ 2,626.47     5130   No   A T & T 8174909174/8174908790
8/17/2010
   PMCHK   $ 54,146.66     5131   No   Dickstein Shapiro LLP
8/17/2010
   PMCHK   $ 180.00     5132   No   Fisher Clinical Services
8/17/2010
   PMCHK   $ 200.00     5133   No   FlexAmerica, Inc.
8/17/2010
   PMCHK   $ 1,146.38     5134   No   Gary Herman
8/17/2010
   PMCHK   $ 25,535.52     5135   No   Integrated Commercialization Sol.
8/17/2010
   PMCHK   $ 292.28     5136   No   IKON Financial Services Box 650016
8/17/2010
   PMCHK   $ 156.12     5137   No   Iron Mountain
8/17/2010
   PMCHK   $ 50.00     5138   No   Shred-it USA, DBA Shred-it Dallas
8/17/2010
   PMCHK   $ 80.00     5139   No   Amber Tomlinson
8/17/2010
   PMCHK   $ 500.00     5140   No   Transport Solutions Inc
8/17/2010
   PMCHK   $ 365.13     5141   No   WorldWide express
8/17/2010
   PMCHK   $ 23,038.04     5142   No   Bayard, P.A.
8/27/2010
   PMCHK   $ 79.60     5143   No   ADP Commercial Leasing
8/27/2010
   PMCHK   $ 1.64     5144   No   Colorado State Treasurer
8/27/2010
   PMCHK   $ 13,424.03     5145   No   Delaware Secretary of State
8/27/2010
   PMCHK   $ 3,511.78     5146   No   Department of Health Services
8/27/2010
   PMCHK   $ 60.00     5147   No   Excel Micro
8/27/2010
   PMCHK   $ 305.78     5148   No   IKON Financial Services Box 650016
8/27/2010
   PMCHK   $ 57,372.84     5149   No   Invotex, Inc.
8/27/2010
   PMCHK   $ 25,513.49     5150   No   Kurtzman Carson Consultants
8/27/2010
   PMCHK   $ 223.61     5151   No   Nebraska Dept of Revenue
8/27/2010
   PMCHK   $ 160.60     5152   No   NYS EPIC PROGRAM
8/27/2010
   PMCHK   $ 1,334.00     5153   No   Pure Compliance
8/27/2010
   PMCHK   $ 25.47     5154   No   New Jersey Wraparound Drug Rebate
8/27/2010
   PMCHK   $ 411.12     5155   No   State of New Jersey Dept Health/Senior Serv
8/27/2010
   PMCHK   $ 750.00     5156   No   SunTrust
8/27/2010
   PMCHK   $ 977.50     5157   No   Thomson Financial Corporate Group
8/27/2010
   PMCHK   $ 897.72     5158   No   UNUM Life Insurance
8/27/2010
   PMCHK   $ 213.65     5159   No   WorldWide express
8/27/2010
   PMCHK   $ 748.87     5167   No   Brad Cole
8/27/2010
   PMCHK   $ 489.43     5168   No   Gary Herman
 
                      
 
       $ 483,417.07     Checks Cut        
 
                      

 

 

 

             
In re:
  MiddleBrook Pharmaceuticals, Inc.       Case No. 10-11485
 
  Debtor       Reporting Period: August 1 — 31, 2010
Debits to bank other than checks
                       
Transaction                 Customer    
Date   Description   Amount   Bank Ref#   Ref. #   Payee / Description
                     
 
8/2/2010   ACH DEBIT     3,725.26          
401K Contributions
8/5/2010   ACH DEBIT     1,218.91          
ADP fees
8/6/2010   ACH DEBIT     355.84          
ADP fees
8/9/2010   DEBIT MEMO — SVB     500.00          
LOCKBOX CHARGE
8/11/2010   DEBIT MEMO — Cap One     245,051.91          
ADP — payroll
8/11/2010   DEBIT MEMO — Cap One     95,211.37          
ADP — payroll taxes
8/17/2010   DEBIT MEMO     146.24          
BCC PAYMENT #1104568
8/17/2010   ACH Withdrawal     227.37          
The Utility Company
8/20/2010   ACH Withdrawal     382.08          
ADP — payroll fees
8/25/2010   DEBIT MEMO     88.24          
Bank Analysis Service Charge
8/27/2010   Wire     33,372.85          
Maguire Partners — Sept rent
8/27/2010   Wire Withdrawal     28,120.77          
ADP — Payroll-related
8/27/2010   ACH Withdrawal     70.05          
ADP — payroll fees
8/30/2010   ACH Withdrawal     15,798.73          
ADP — payroll related
           
 
        
        $ 424,269.62   Debits to Bank other than Checks
           
 
        
                     
 
Voided Checks from Prior Periods   $ 0.00            
           
 
        
                     
 
        $ 907,686.69   total disbursements    
           
 
        
                     
 
Checks cleared by bank:        
 
        
8/2/2010   DEBIT MEMO — CapOne     32,230.76          
CONTROL DISBURSEMENT/CLEARED CHECKS
8/3/2010   DEBIT MEMO — CapOne     170,771.52          
CONTROL DISBURSEMENT/CLEARED CHECKS
8/4/2010   DEBIT MEMO — CapOne     7,717.95          
CONTROL DISBURSEMENT/CLEARED CHECKS
8/5/2010   DEBIT MEMO — CapOne     2,995.85          
CONTROL DISBURSEMENT/CLEARED CHECKS
8/9/2010   DEBIT MEMO — CapOne     3,688.87          
CONTROL DISBURSEMENT/CLEARED CHECKS
8/10/2010   DEBIT MEMO — CapOne     1,252.82          
CONTROL DISBURSEMENT/CLEARED CHECKS
8/11/2010   DEBIT MEMO — CapOne     81,078.59          
CONTROL DISBURSEMENT/CLEARED CHECKS
8/17/2010   DEBIT MEMO — CapOne     156,863.40          
CONTROL DISBURSEMENT/CLEARED CHECKS
8/18/2010   DEBIT MEMO — CapOne     24,892.53          
CONTROL DISBURSEMENT/CLEARED CHECKS
8/19/2010   DEBIT MEMO — CapOne     8,778.56          
CONTROL DISBURSEMENT/CLEARED CHECKS
8/23/2010   DEBIT MEMO — CapOne     29,575.61          
CONTROL DISBURSEMENT/CLEARED CHECKS
8/24/2010   DEBIT MEMO — CapOne     24,253.59          
CONTROL DISBURSEMENT/CLEARED CHECKS
8/27/2010   DEBIT MEMO — CapOne     54,511.79          
CONTROL DISBURSEMENT/CLEARED CHECKS
8/30/2010   DEBIT MEMO — CapOne     2,860.51          
CONTROL DISBURSEMENT/CLEARED CHECKS
8/31/2010   DEBIT MEMO — CapOne     1,334.00          
CONTROL DISBURSEMENT/CLEARED CHECKS
           
 
        
        $ 602,806.35  
 
        
           
 
        

 

 

 

             
In re:
  MiddleBrook Pharmaceuticals, Inc.       Case No. 10-11485
 
  Debtor       Reporting Period: August 1 — 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             $ 204,155.20          
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             $ 5,825.95             $ 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                                              
 
                                                                                    
Alston & Bird LLP subtotal
                                                                           $ 307,852.40     $ 13,588.16  
 
                                                                                    
 
                                                                                        
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                                              
 
                                                                                    
Bayard, P.A. subtotal
                                                                           $ 51,175.20     $ 605.28  
 
                                                                                    
 
                                                                                        
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                       9/3/2010                                              
 
                                                                                    
Dickstein Shapiro LLP subtotal
                                                                           $ 158,092.30     $ 7,456.36  
 
                                                                                    
 
                                                                                        
Gleacher & Company
   4/30 – 7/31/10   $ 660,000.00     $ 52,514.48     $ 660,000.00     $ 52,514.48       9/7/2010                                              
 
                                                                                    
Gleacher & Company subtotal
                                                                           $ 0.00     $ 0.00  
 
                                                                                    
 
                                                                                        
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                                              
 
                                                                                    
Invotex, Inc. subtotal
                                                                           $ 56,998.80     $ 374.04  
 
                                                                                    
 
                                                                                        
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 subtotal
                                                                           $ 92,801.00     $ 24,731.65  
 
                                                                                    
 
                                                                                        
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                       8/31/2010                                              
 
                                                                                    
Young Conaway Stargatt & Taylor LLP subtotal
                                                                           $ 53,538.00     $ 1,736.20  
 
                                                                                    
 
                                                                                        
Total
                                                                           $ 720,957.70     $ 56,000.69  
 
                                                                                    

 

 

 

             
In re:
  MiddleBrook Pharmaceuticals, Inc.       Case No. 10-11485
 
  Debtor       Reporting Period: August 1 — 31, 2010
                 
    August     Cumulative  
    2010     Filing to Date  
Gross Sales
     —       438,100  
Sales Reserves and Allowances
     (26,382 )     (3,179,953 )
 
            
Net Revenue
     (26,382 )     (2,741,852 )
 
                
Cost of Goods Sold
     —       860,166  
 
                
Salaries, Bonus & Temp Labor
     183,314       3,126,127  
Benefits, Payroll Taxes, Recruiting & Relocation
     32,328       68,288  
 
            
Subtotal: Salaries & Benefits
     215,642       3,194,415  
 
                
Stock-Based Compensation
     —       408,171  
Marketing & Advertising
     (2,499 )     4,011  
Travel & Entertainment
     2,318       48,505  
Facilities and Equipment Related
     49,888       219,871  
Insurance
     79,675       325,442  
Distribution Expense
     54,754       346,370  
Office & General Lab Supplies
     790       5,730  
Consulting & Legal Fees
     804,747       2,532,144  
Patents & Licensing
     4,108       254,719  
Audit, IR & Financial Fees
     9,431       (62,240 )
Non-Income Taxes
     13,214       14,703  
Depreciation and Amortization
     —       974,542  
Director and SAB Fees
     2,296       63,689  
 
            
 
                
Subtotal: FTE Expenses
     1,234,363       8,330,072  
 
            
 
                
Marketing Costs
     (157 )     169,576  
Direct Project Costs
     —       53,114  
 
            
Total Expenses
     1,234,206       9,412,927  
 
            
Income (Loss) from Operations
     (1,260,588 )     (12,154,780 )
 
                
Interest Income
     —       357  
Other income (expense)
     725       3,630  
 
            
Net Income (Loss) Before Taxes
     (1,259,863 )     (12,150,793 )
 
            
 
                
Net Income (Loss)
     (1,255,763 )     (8,478,380 )
 
            

 

 

 

             
In re:
  MiddleBrook Pharmaceuticals, Inc.       Case No. 10-11485
 
  Debtor       Reporting Period: August 1 — 31, 2010
                 
    Current     Petition  
    Month     Date  
Cash & Cash Equivalents
     18,679,165       5,257,718  
Accounts Receivable, net
     205,100       (490,487 )
Inventory
     (0 )     2,213,158  
Prepaid and Other Current Assets
     1,019,247       3,397,106  
 
                
Property and Equipment
     —       14,341,773  
Accumulated Depreciation
     —       (12,460,925 )
 
            
Property and Equipment, net
     —       1,880,848  
 
                
Deposits and Other Assets
     525,714       680,580  
 
                
Intangible Assets
     —       11,877,529  
Accum. Amort — Intangibles
     —       (2,643,218 )
 
            
Intangible Assets, net
     —       9,234,311  
 
                
Total Assets
     20,429,226       22,173,234  
 
                
20000 — Accounts Payable — post-petition
     (440,236 )     —  
21201 — Accrued Payable to Lilly
     —       —  
21210 — Accrued Professional Fees
     (1,255,013 )     —  
21250 — Accrued R&D Costs
     —       —  
21275 — Accrued Keflex Copay Assistance
     —       —  
21276 — Accrued Moxatag Copay Assistance
     —       —  
21281 — Accrued Medicaid Rebates Payable
     —       —  
21282 — Accrued Returns
     —       —  
21290 — Other Accrued Expenses
     (65,420 )     —  
23200 — Wages Payable
     (23,677 )     —  
23620 — Employee Benefits Pay-401k
     —       —  
23650 — Employee Benefits — Flex Spending
     —       —  
 
            
Accounts Payable and Accrued Expenses — Post-Petition
     (1,784,346 )     —  
 
                
20000 — Accounts Payable — pre-petion
     (840,661 )     (1,214,588 )
21110 — Accrued Severance
     (2,483,074 )     (281,258 )
21201 — Accrued Payable to Lilly
     —       (5,252 )
21210 — Accrued Professional Fees
     (29,917 )     (199,917 )
21250 — Accrued R&D Costs
     —       (136,067 )
21275 — Accrued Keflex Copay Assistance
     —       (9,276 )
21276 — Accrued Moxatag Copay Assistance
     —       (3,705,035 )
21281 — Accrued Medicaid Rebates Payable
     (45,780 )     (563,001 )
21282 — Accrued Returns
     —       (1,945,797 )
21290 — Other Accrued Expenses
     —       (292,773 )
23200 — Wages Payable
     (97,344 )     (306,521 )
23620 — Employee Benefits Pay-401k
     —       (33,339 )
23650 — Employee Benefits — Flex Spending
     —       (3,899 )
25000 — Other Current Liabilities
     (4,865,617 )     (4,810,772 )
 
            
Accounts Payable and Accrued Expenses — Pre-Petition
     (8,362,392 )     (13,507,496 )
 
                
Deferred Contract Revenue — non-current (pre-petition)
     (11,625,000 )     (11,625,000 )
Deferred Lease Expense
     (20,835 )     (18,340 )
 
                
Common Stock
     (865,119 )     (865,119 )
Additional Paid in Capital
     (322,373,995 )     (312,281,358 )
 
                
Retained Earnings
     299,240,744       299,240,744  
YTD P&L
     25,361,717       16,883,336  
 
            
Accumulated Deficit
     324,602,460       316,124,080  
 
            
 
                
Stockholders’ Equity
     1,363,347       2,977,602  
 
                
Liabilities & Stockholders’ Equity
     (20,429,226 )     (22,173,234 )

 

 

 

         
In re:
  MiddleBrook Pharmaceuticals, Inc.   Case No. 10-11485
 
  Debtor   Reporting Period: August 1 — 31, 2010
         
Other Post-petition liabilities        
Professional bankruptcy fees estimates — creditors’ committee cousel & FA
     100,000  
Professional bankruptcy fees estimates — equity committee counsel
     225,000  
Professional bankruptcy fees estimates — corporate and local counsel
     116,582  
Professional bankruptcy fees — KCC estimate
     21,000  
Professional legal fees (July)
     56,000  
Investment Banker — Gleacher
     712,514  
Integrated Commercialization Solutions — August
     46,433  
Other miscellaneous May — August accruals — no invoices yet
     42,904  
 
        
 
      
Total of Accrued Professional Fees (acct 21210) & Other Accrued Expenses (acct 21290)
   $ 1,320,433  
 
      

 

 

 

         
In re:
  MiddleBrook Pharmaceuticals, Inc.   Case No. 10-11485
 
  Debtor   Reporting Period: August 1 — 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
     42,561       698       —       (145 )     —       43,114  
Wages Payable (401k contributions)
     —       —       —       —       —       —  
Taxes Payable (payroll-related taxes)
     —       —       —       —       —       —  
Rent/Leases-Building
     —       —       —       —       —       —  
Rent/Leases-Equipment
     —       —       —       —       —       —  
Secured Debt/Adequate Protection Payments
     —       —       —       —       —       —  
Professional Fees
     39,675       288,292       68,955       —       —       396,922  
Amounts Due to Insiders*
     —       —       —       —       —       —  
Other:
     —       —       —       —       —       —  
Other:
     —       —       —       —       —       —  
 
                                    
Total Postpetition Debts
     82,236       288,990       68,955       (145 )     —       440,036  
 
                                    
Explain how and when the Debtor intends to pay any past-due postpetition debts.
Accounts Payable amounts in 0-30 days were paid in September. 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: August 1 — 31, 2010
SUMMARY OF UNPAID POSTPETITION DEBTS
                                         
        Voucher   Document     Current Trx         Document      
Vendor ID   Vendor Name   Number   Date     Amount     Document Number   Type   Paid Date  
ADP001  
ADP
   038551     8/13/2010     $ 2,995.85     516178   Invoice     9/8/2010  
ALS002  
Alston & Bird LLP
   038531     7/31/2010     $ 20,153.40     JULY 20%   Invoice        
ALS002  
Alston & Bird LLP
   038421     6/30/2010     $ 25,924.30     06302010 20%   Invoice        
ALS002  
Alston & Bird LLP
   038358     7/14/2010     $ 51,038.80     MAY 2010 20%   Invoice        
ALS002  
Alston & Bird LLP
   038530     7/31/2010     $ 80,613.60     JULY 80%   Invoice     9/8/2010  
ALS002  
Alston & Bird LLP
   038532     7/31/2010     $ 1,689.29     JULY EXP   Invoice     9/8/2010  
BAY002  
Bayard, P.A.
   038540     8/18/2010     $ 4,891.60     JULY 2010 20%   Invoice        
BAY002  
Bayard, P.A.
   038461     6/30/2010     $ 5,661.20     JUNE 2010 20%   Invoice        
BAY002  
Bayard, P.A.
   038348     7/14/2010     $ 7,132.60     MAY 2010 20%   Invoice        
BAY002  
Bayard, P.A.
   038539     8/18/2010     $ 19,566.40     JULY 2010 80%   Invoice     9/14/2010  
BAY002  
Bayard, P.A.
   038541     8/18/2010     $ 623.21     JULY 2010 EXP   Invoice     9/14/2010  
DIC002  
Dickstein Shapiro LLP
   038528     7/31/2010     $ 12,615.25     JULY 20%   Invoice        
DIC002  
Dickstein Shapiro LLP
   038458     6/30/2010     $ 12,709.00     JUNE 2010 20%   Invoice        
DIC002  
Dickstein Shapiro LLP
   038351     7/14/2010     $ 26,813.70     MAY 2010 20%   Invoice        
DIC002  
Dickstein Shapiro LLP
   038527     7/31/2010     $ 50,461.00     JULY 80%   Invoice     9/8/2010  
DIC002  
Dickstein Shapiro LLP
   038529     7/31/2010     $ 2,223.29     JULY EXP   Invoice     9/8/2010  
DOC002  
DoctorDirectory.Com, Inc.
   038535     8/24/2010     $ 30,943.00     4931   Invoice     9/8/2010  
GRA005  
Gray Robinson
   038463     7/31/2010     $ 23.82     10097780   Invoice        
GRA005  
Gray Robinson
   038389     7/9/2010     $ 25.08     10094694   Invoice        
GRA005  
Gray Robinson
   038391     7/9/2010     $ 168.60     10094696   Invoice        
GRA005  
Gray Robinson
   038390     7/9/2010     $ 236.37     10094695   Invoice        
GRA005  
Gray Robinson
   038274     6/9/2010     $ 252.00     10088120   Invoice        
GRA005  
Gray Robinson
   038392     7/9/2010     $ 252.00     10094697   Invoice        
GRA005  
Gray Robinson
   038465     7/31/2010     $ 252.00     10097784   Invoice        
GRA005  
Gray Robinson
   038273     6/9/2010     $ 356.40     10088119   Invoice        
GRA005  
Gray Robinson
   038393     7/9/2010     $ 378.00     10094699   Invoice        
GRA005  
Gray Robinson
   038276     6/9/2010     $ 558.11     10088127   Invoice        
GRA005  
Gray Robinson
   038464     7/31/2010     $ 567.00     10097781   Invoice        
GRA005  
Gray Robinson
   038275     6/9/2010     $ 646.65     10088126   Invoice        
GRA005  
Gray Robinson
   038388     7/9/2010     $ 1,433.00     10094691   Invoice        
GRA005  
Gray Robinson
   038466     7/31/2010     $ 2,779.00     10097778   Invoice        
GRA005  
Gray Robinson
   038272     6/9/2010     $ 3,591.00     10088115   Invoice        
HDS001  
H D Smith
   038468     7/2/2010     $ 697.83     Q210034   Invoice     9/14/2010  
HEA012  
Healthcare & Family Services
   037619     3/9/2010     $ (145.27 )   1104220094   Credit Memo        
INV003  
Invotex, Inc.
   038543     8/18/2010     $ 2,902.85     JULY 2010 20%   Invoice        
INV003  
Invotex, Inc.
   038455     6/30/2010     $ 14,249.70     JUNE 2010 20%   Invoice        
INV003  
Invotex, Inc.
   038542     8/18/2010     $ 11,611.40     JULY 2010 80%   Invoice     9/14/2010  
INV003  
Invotex, Inc.
   038544     8/18/2010     $ 79.24     JULY 2010 EXP   Invoice     9/14/2010  
IRO001  
Iron Mountain
   038589     8/31/2010     $ 1,547.53     RETRIEVAL   Invoice     9/8/2010  
UNI017  
Unified TelData, Inc.
   038546     8/24/2010     $ 2,455.00     417139   Invoice        
UNI017  
Unified TelData, Inc.
   038545     8/24/2010     $ 4,620.00     417129   Invoice        
YOU005  
Young Conaway Stargatt & Taylor LLP
   038519     7/31/2010     $ 3,868.20     JULY 2010 20%   Invoice        
YOU005  
Young Conaway Stargatt & Taylor LLP
   038452     6/30/2010     $ 5,006.70     JUNE 2010 20%   Invoice        
YOU005  
Young Conaway Stargatt & Taylor LLP
   038354     7/14/2010     $ 8,377.80     MAY 2010 20%   Invoice        
YOU005  
Young Conaway Stargatt & Taylor LLP
   038518     7/31/2010     $ 15,472.80     JULY 2010 80%   Invoice     9/8/2010  
YOU005  
Young Conaway Stargatt & Taylor LLP
   038520     7/31/2010     $ 1,717.81     JULY 2010 EXP   Invoice     9/8/2010  
   
 
                                  
   
 
               $ 440,036.11                  
   
 
                                  

 

 

 

         
In re:
  MiddleBrook Pharmaceuticals, Inc.   Case No. 10-11485
 
  Debtor   Reporting Period: August 1 — 31, 2010
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
                 
Accounts Receivable Reconciliation   Amount          
Total Accounts Receivable at the beginning of the reporting period
     531,384.87          
+ Amounts billed during the period
     —          
- Amounts collected during the period
     (285,463.94 )        
- Other adjustments during period
     (24,900.00 )        
Total Accounts Receivable at the end of the reporting period
     221,020.93          
 
                
Accounts Receivable Aging   Amount          
0 - 30 days old
     —          
31 - 60 days old
     19,509.08          
61 - 90 days old
     9,787.62          
91 + days old
     191,549.88          
Total Accounts Receivable
     220,846.58          
Amount considered uncollectible (Bad Debt)
     —          
Accounts Receivable (Net)
     220,846.58       174.35  
 
           reconciling item  
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    
Money Market account has been opened at Capital One Bank. Details have been provided to U.S. Trustee’s Office.
FORM MOR-5
(04/07)