EX-99.1 2 c08853exv99w1.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: October 1 — October 31, 2010
MONTHLY OPERATING REPORT
File with Court and submit copy to United States Trustee within 20 days after end of month
Submit copy of report to any official committee appointed in the case.
                 
        Document   Explanation   Affidavit/Supplement
REQUIRED DOCUMENTS   Form No.   Attached   Attached   Attached
Certifications
                
Schedule of Cash Receipts and Disbursements
   MOR-1   X        
Bank Reconciliation (or copies of debtor’s bank reconciliations)
           see certifications   X
Schedule of Professional Fees Paid
   MOR-1b   X        
Copies of bank statements
           see certifications   X
Cash disbursements journals
       X        
Statement of Operations
   MOR-2   X        
Balance Sheet
   MOR-3   X        
Status of Postpetition Taxes
           see certifications   X
Copies of IRS Form 6123 or payment receipt
                
Copies of tax returns filed during reporting period
                
Summary of Unpaid Postpetition Debts
   MOR-4   X        
Listing of aged accounts payable
   MOR-4   X        
Accounts Receivable Reconciliation and Aging
   MOR-5   X        
Debtor Questionnaire
   MOR-5   X       X
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.
     
 
   
Signature of Debtor
  Date
 
    
 
   
Signature of Joint Debtor
  Date
 
    
/s/ Brad Cole
  November 22, 2010
 
   
Signature of Authorized Individual*
  Date
 
    
Brad Cole
  SVP, General Counsel
 
   
Printed Name of Authorized Individual
  Title of Authorized Individual
     
*   Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.
MOR
(04/07)

 

 

 

UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
     
In re MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
         Debtor
  Reporting Period: October 1 — October 31, 2010
CERTIFICATIONS
A. Bank Reconciliation Certification
The undersigned verifies that, to my knowledge, all of the Debtors’ October 31, 2010 bank balances have been reconciled in an accurate and timely manner.
                 
Bank Name   Account     Book Balance  
Capital One Bank
     ****8899     $ 3,716,550.04  
Capital One Bank
     ****8910     $ 10,000.00  
Capital One Bank
     ****9471     $ 13,511,494.19  
B. Post-petition Taxes Certification
The undersigned verifies that, to my knowledge, all post-petition tax obligations, including but not limited to payroll, real property, income, franchise and other taxes have been paid to the proper taxing authority when due.
     
/s/ David Carlson
  November 22, 2010
 
   
Signature of Authorized Individual
  Date
 
    
David Carlson
  VP, Finance and Treasurer
 
   
Printed Name of Authorized Individual
  Title of Authorized Individual

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
          Debtor
  Reporting Period: October 1 — October 31, 2010
MOR 1
                                 
    Current Month     Cumulative Filing to Date  
    Actual     Forecast     Actual     Forecast  
 
                                
Beginning Date
   1-Oct-10     1-Oct-10     3-May-10     3-May-10  
Ending Date
   31-Oct-10     31-Oct-10     31-Oct-10     31-Oct-10  
 
                                
Cash — Beginning Balance
   $ 17,830,481     $ 17,955,495     $ 5,257,718     $ 5,269,539  
 
                                
Receipts
                                
Lockbox
     31,598     $ 25,000       645,880     $ 299,859  
Misc Deposit
     40,863     $ 24,404       17,520,121     $ 18,688,404  
 
                        
Total Receipts
   $ 72,461     $ 49,404     $ 18,166,001     $ 18,988,263  
 
                                
Operating Disbursements
                                
Gleacher
   $ (132,000 )   $ 0     $ (712,514 )   $ 0  
Dr Directory
   $ 0     $ 0     $ (77,948 )   $ (127,774 )
Legal & Deal fees
   $ (196,184 )   $ (96,815 )   $ (979,430 )   $ (770,511 )
KCC LLC
   $ (12,421 )   $ (45,000 )   $ (58,665 )   $ (115,513 )
Creditors Committee Counsel & FA
   $ (122,775 )   $ (35,799 )   $ (264,712 )   $ (395,066 )
Equity Committee Counsel
   $ 0     $ (150,000 )   $ (39,877 )   $ (189,877 )
Other Professional Fees
   $ 0     $ (179,197 )   $ 0     $ (179,197 )
Payroll
   $ (59,324 )   $ (81,461 )   $ (1,142,731 )   $ (1,409,830 )
Benefits
   $ (60,904 )   $ (12,416 )   $ (216,130 )   $ (156,567 )
Severance
   $ 0     $ 0     $ 0     $ 0  
Invoices in A/P Aging
   $ 0     $ (4,636 )   $ (1,218,559 )   $ (1,153,048 )
Misc (TX rent, Insurance, ICS)
   $ (41,506 )   $ (76,500 )   $ (433,572 )   $ (324,436 )
Other
   $ (39,784 )   $ (44,000 )   $ (1,046,286 )   $ (1,208,458 )
voided checks
   $ 0     $ 0     $ 4,749     $ 0  
 
                        
Total Operating Disbursements
   $ (664,898 )   $ (725,824 )   $ (6,185,675 )   $ (6,030,277 )
 
                        
 
                                
Net Operating Cash Flow
   $ (592,437 )   $ (676,420 )   $ 11,980,326     $ 12,957,986  
 
                        
 
                                
Non-Operating Disbursements
                                
Capex
                                
Professional Fees
                                
 
                        
Total Non-Operating Disbursements
   $ 0     $ 0     $ 0     $ 0  
 
                        
 
                                
Net Operating Cash Flow Before Financing
   $ (592,437 )   $ (676,420 )   $ 11,980,326     $ 12,957,986  
 
                        
 
                                
Financing Activities
                                
Interest Payments
                                
 
                        
Financing Activities
   $ 0     $ 0     $ 0     $ 0  
 
                                
Cash Flow
   $ (592,437 )   $ (676,420 )   $ 11,980,326     $ 12,957,986  
 
                        
 
                                
Ending Cash Balance (per books)
   $ 17,238,044     $ 17,279,075     $ 17,238,044     $ 18,227,526  
 
                        
         
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)      
TOTAL DISBURSEMENTS
   $ (664,898 )
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS
   $ 0  
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts)
   $ 0  
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES
   $ (664,898 )

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
          Debtor
  Reporting Period: October 1 — October 31, 2010
Disbursements Journal
Checks cut during period
                             
GL Posting       Checkbook                
Date   Source Document   Amount     CM Trx Number     Voided   Paid ToRcvd From
10/13/2010
   PMCHK   $ 5.67       5245     No   A T & T 8174909174/8174908790
10/20/2010
   PMCHK   $ 2,995.85       5254     No   ADP
10/13/2010
   PMCHK   $ 79.60       5244     No   ADP Commercial Leasing
10/7/2010
   PMCHK   $ 81,814.75       5243     No   Alston & Bird LLP
10/27/2010
   PMCHK   $ 97,116.50       5263     No   Alston & Bird LLP
10/7/2010
   PMCHK   $ 1,050.00       5242     No   American Stock Transfer & Trust Co
10/20/2010
   PMCHK   $ 18.32       5256     No   AT&T
10/20/2010
   PMCHK   $ 311.23       5255     No   AT&T Mobility
10/7/2010
   PMCHK   $ 1,043.44       5239     No   ATT
10/20/2010
   PMCHK   $ 11,662.06       5257     No   Bayard, P.A.
10/27/2010
   PMCHK   $ 17,685.40       5275     No   Bayard, P.A.
10/13/2010
   PMCHK   $ 1,104.83       5247     No   Brad Cole
10/13/2010
   PMCHK   $ 421.32       5246     No   David Carlson
10/13/2010
   PMCHK   $ 24,137.23       5248     No   Dickstein Shapiro LLP
10/27/2010
   PMCHK   $ 52,137.95       5264     No   Dickstein Shapiro LLP
10/7/2010
   PMCHK   $ 132,000.00       5240     No   Gleacher & Company
10/13/2010
   PMCHK   $ 11,519.03       5253     No   Gray Robinson
10/7/2010
   PMCHK   $ 1,592.50       5241     No   Herman Technology Consultants-LLC
10/13/2010
   PMCHK   $ 1,732.01       5249     No   Herman Technology Consultants-LLC
10/27/2010
   PMCHK   $ 2,196.90       5265     No   Herman Technology Consultants-LLC
10/13/2010
   PMCHK   $ 3,237.30       5250     No   IKON Financial Services
10/27/2010
   PMCHK   $ 292.28       5266     No   IKON Financial Services
10/20/2010
   PMCHK   $ 7,509.11       5258     No   Integrated Commercialization Sol.
10/27/2010
   PMCHK   $ 17,152.55       5267     No   Invotex, Inc.
10/27/2010
   PMCHK   $ 12,421.30       5268     No   Kurtzman Carson Consultants
10/13/2010
   PMCHK   $ 107.01       5251     No   Prostar Services, Inc
10/20/2010
   PMCHK   $ 41.36       5259     No   Prostar Services, Inc
10/27/2010
   PMCHK   $ 574.00       5269     No   Pure Compliance
10/20/2010
   PMCHK   $ 250.00       5260     No   Transport Solutions Inc
10/27/2010
   PMCHK   $ 10,400.00       5272     No   U S TRUSTEE
10/27/2010
   PMCHK   $ 59,133.51       5270     No   United Healthcare Insurance Co.
10/27/2010
   PMCHK   $ 464.94       5271     No   UNUM Life Insurance
10/20/2010
   PMCHK   $ 637.08       5261     No   Verizon Wireless
10/27/2010
   PMCHK   $ 1,305.72       5273     No   VSP - (AT)
10/13/2010
   PMCHK   $ 66.15       5252     No   WorldWide express
10/20/2010
   PMCHK   $ 107.93       5262     No   WorldWide express
10/27/2010
   PMCHK   $ 17,252.70       5274     No   Young Conaway Stargatt & Taylor LLP
 
                          
 
                            
 
       $ 571,577.53     Checks Cut        
 
                          

 

 

 

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

 

 

 

         
In re:
  MiddleBrook Pharmaceuticals, Inc.   Case No. 10-11485
 
  Debtor   Reporting Period: October 1 — October 31, 2010
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID
This schedule is to include all retained professional payments from case inception to current month
                                                                                                 
            Invoice Amount -     Invoice Amount -     Fees     Expenses     Objection     Check     Amount Paid     Year-To-Date  
Payee   Period Covered     Fees     Expenses     Approved     Approved     Deadline     Number     Date     Fees     Expenses     Fees     Expenses  
Alston & Bird LLP
     4/30 - 5/31/10     $ 255,194.00     $ 0.00     $ 255,194.00     $ 0.00       7/7/2010       5082       7/21/2010     $ 204,155.20     $ 0.00     $ 204,155.20     $ 0.00  
Alston & Bird LLP
     4/30 - 5/31/10     $ 0.00     $ 5,825.95     $ 0.00     $ 5,825.95       7/7/2010       5085       7/22/2010     $ 0.00     $ 5,825.95     $ 0.00     $ 5,825.95  
Alston & Bird LLP
     6/1 - 6/30/10     $ 129,621.50     $ 7,762.21     $ 129,621.50     $ 7,762.21       8/5/2010       5107       8/12/2010     $ 103,697.20     $ 7,762.21     $ 103,697.20     $ 7,762.21  
Alston & Bird LLP
     7/1 - 7/31/10     $ 100,767.00     $ 1,689.29     $ 100,767.00     $ 1,689.29       9/3/2010       5170       9/8/2010     $ 80,613.60     $ 1,689.29     $ 80,613.60     $ 1,689.29  
Alston & Bird LLP
     8/1 - 8/31/10     $ 99,230.00     $ 2,430.75     $ 99,230.00     $ 2,430.75       10/4/2010       5243       10/7/2010     $ 79,384.00     $ 2,430.75     $ 79,384.00     $ 2,430.75  
Alston & Bird LLP
     4/30 - 7/31/10 *                                     11/1/2010       5263       10/27/2010     $ 97,116.50     $ 0.00     $ 97,116.50     $ 0.00  
Alston & Bird LLP
     9/1 - 9/31/10     $ 104,208.00     $ 285.55     $ 104,208.00     $ 285.55       11/2/2010       5286       11/4/2010     $ 80,366.40     $ 285.55     $ 80,366.40     $ 285.55  
 
                                                                                            
Alston & Bird LLP subtotal
                                                                                   $ 645,332.90     $ 17,993.75  
 
                                                                                            
 
                                                                                                
Bayard, P.A.
     5/11 - 5/31/10     $ 35,663.00     $ 212.04     $ 35,663.00     $ 212.04       7/19/2010       5086       7/22/2010     $ 28,530.40     $ 212.04     $ 28,530.40     $ 212.04  
Bayard, P.A.
     6/1 - 6/30/10     $ 29,506.00     $ 393.24     $ 28,306.00     $ 393.24       8/10/2010       5142       8/17/2010     $ 22,644.80     $ 393.24     $ 22,644.80     $ 393.24  
Bayard, P.A.
     7/1 - 7/31/10     $ 24,458.00     $ 623.21     $ 24,458.00     $ 623.21       9/7/2010       5212       9/14/2010     $ 19,566.40     $ 623.21     $ 19,566.40     $ 623.21  
Bayard, P.A.
     8/1 - 8/31/10     $ 14,119.00     $ 366.86     $ 14,119.00     $ 366.86       10/7/2010       5257       10/20/2010     $ 11,295.20     $ 366.86     $ 11,295.20     $ 366.86  
Bayard, P.A.
     4/30 - 7/31/10 *                                     10/19/2010       5275       10/27/2010     $ 17,685.40     $ 0.00     $ 17,685.40     $ 0.00  
Bayard, P.A.
     9/1 - 9/31/10     $ 10,673.50     $ 287.15     $ 10,673.50     $ 287.15       11/2/2010       5291       11/17/2010     $ 8,538.80     $ 287.15     $ 8,538.80     $ 287.15  
 
                                                                                            
Bayard, P.A. subtotal
                                                                                   $ 108,261.00     $ 1,882.50  
 
                                                                                            
 
                                                                                                
Carella, Byrne, Bain
   annuity services     $ 450.00     $ 6,993.00     $ 450.00     $ 6,993.00       N/A       5044       7/2/2010     $ 450.00     $ 6,993.00     $ 450.00     $ 6,993.00  
Carella, Byrne, Bain
   patent maintenance     $ 50.00     $ 516.00     $ 50.00     $ 516.00       N/A       2588       6/21/2010     $ 50.00     $ 516.00     $ 50.00     $ 516.00  
 
                                                                                            
Carella, Byrne, Bain subtotal
                                                                                   $ 500.00     $ 7,509.00  
 
                                                                                            
 
                                                                                                
Dickstein Shapiro LLP
     5/11 - 5/31/10     $ 134,068.50     $ 4,147.20     $ 134,068.50     $ 4,147.20       7/19/2010       5087       7/22/2010     $ 107,254.80     $ 4,147.20     $ 107,254.80     $ 4,147.20  
Dickstein Shapiro LLP
     6/1 - 6/30/10     $ 63,546.50     $ 3,309.16     $ 63,546.50     $ 3,309.16       8/10/2010       5131       8/17/2010     $ 50,837.50     $ 3,309.16     $ 50,837.50     $ 3,309.16  
Dickstein Shapiro LLP
     7/1 - 7/31/10     $ 63,076.25     $ 2,223.29     $ 63,076.25     $ 2,223.29       9/3/2010       5191       9/8/2010     $ 50,461.00     $ 2,223.29     $ 50,461.00     $ 2,223.29  
Dickstein Shapiro LLP
     8/1 - 8/31/10     $ 28,955.00     $ 973.23     $ 28,955.00     $ 973.23       10/5/2010       5248       10/13/2010     $ 23,164.00     $ 973.23     $ 23,164.00     $ 973.23  
Dickstein Shapiro LLP
     4/30 - 7/31/10 *                                     10/19/2010       5264       10/27/2010     $ 52,137.95     $ 0.00     $ 52,137.95     $ 0.00  
Dickstein Shapiro LLP
     9/1 - 9/31/10     $ 43,782.00     $ 3,606.17     $ 43,782.00     $ 3,606.17       11/19/2010                                     $ 0.00     $ 0.00  
 
                                                                                            
Dickstein Shapiro LLP subtotal
                                                                                   $ 283,855.25     $ 10,652.88  
 
                                                                                            
 
                                                                                                
Gleacher & Company
     4/30 - 7/31/10     $ 660,000.00     $ 52,514.48     $ 660,000.00     $ 52,514.48       9/7/2010     Wire       9/17/2010     $ 528,000.00     $ 52,514.48     $ 528,000.00     $ 52,514.48  
Gleacher & Company
     4/30 - 7/31/10 *                                     9/30/2010       5240       10/20/2010     $ 132,000.00     $ 0.00     $ 132,000.00     $ 0.00  
 
                                                                                            
Gleacher & Company subtotal
                                                                                   $ 660,000.00     $ 52,514.48  
 
                                                                                            
 
                                                                                                
Invotex, Inc.
     5/26 - 6/30/10     $ 71,248.50     $ 374.04     $ 71,248.50     $ 374.04       8/12/2010       5149       8/27/2010     $ 56,998.80     $ 374.04     $ 56,998.80     $ 374.04  
Invotex, Inc.
     7/1 - 7/30/10     $ 14,514.25     $ 79.24     $ 14,514.25     $ 79.24       9/7/2010       5208       9/14/2010     $ 11,611.40     $ 79.24     $ 11,611.40     $ 79.24  
Invotex, Inc.
     4/30 - 7/31/10 *                                     10/19/2010       5267       10/27/2010     $ 17,152.55     $ 0.00     $ 17,152.55     $ 0.00  
 
                                                                                            
Invotex, Inc. subtotal
                                                                                   $ 85,762.75     $ 453.28  
 
                                                                                            
 
                                                                                                
Kurtzman Carson Consultants
     4/30/2010     $ 2,232.00     $ 78.20     $ 2,232.00     $ 78.20       N/A       5029       7/1/2010     $ 2,232.00     $ 78.20     $ 2,232.00     $ 78.20  
Kurtzman Carson Consultants
   NYTIMES (July)     $ 0.00     $ 3,680.00     $ 0.00     $ 3,680.00       N/A     wire     7/9/2010       0       3,680.00     $ 0.00     $ 3,680.00  
Kurtzman Carson Consultants
     5/1 - 5/31/10     $ 44,420.50     $ 13,040.83     $ 44,420.50     $ 13,040.83       N/A       5080       7/21/2010     $ 44,420.50     $ 13,040.83     $ 44,420.50     $ 13,040.83  
Kurtzman Carson Consultants
     6/1 - 6/30/10     $ 25,815.50     $ 2,752.13     $ 25,815.50     $ 2,752.13       N/A       5096       7/27/2010     $ 25,815.50     $ 2,752.13     $ 25,815.50     $ 2,752.13  
Kurtzman Carson Consultants
     7/1 -7/31/10     $ 20,333.00     $ 5,180.49     $ 20,333.00     $ 5,180.49       N/A       5150       8/27/2010     $ 20,333.00     $ 5,180.49     $ 20,333.00     $ 5,180.49  
Kurtzman Carson Consultants
     8/1 -8/31/10     $ 15,765.50     $ 4,964.56     $ 15,765.50     $ 4,964.56       N/A       5221       9/23/2010     $ 15,765.50     $ 4,964.56     $ 15,765.50     $ 4,964.56  
Kurtzman Carson Consultants
     9/1 -9/31/10     $ 9,943.00     $ 2,478.30     $ 9,943.00     $ 2,478.30       N/A       5268       10/27/2010     $ 9,943.00     $ 2,478.30     $ 9,943.00     $ 2,478.30  
 
                                                                                            
Kurtzman Carson Consultants subtotal
                                                                                   $ 118,509.50     $ 32,174.51  
 
                                                                                            

 

 

 

         
In re:
  MiddleBrook Pharmaceuticals, Inc.   Case No. 10-11485
 
  Debtor   Reporting Period: October 1 — October 31, 2010
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID
This schedule is to include all retained professional payments from case inception to current month
                                                                                                 
            Invoice Amount -     Invoice Amount -     Fees     Expenses     Objection     Check     Amount Paid     Year-To-Date  
Payee   Period Covered     Fees     Expenses     Approved     Approved     Deadline     Number     Date     Fees     Expenses     Fees     Expenses  
Morris James LLP
     7/1 - 7/31/10     $ 49,525.00     $ 256.57     $ 49,525.00     $ 256.57       9/20/2010       5227       9/23/2010     $ 39,620.00     $ 256.57     $ 39,620.00     $ 256.57  
Morris James LLP
     8/1 - 8/31/10     $ 34,667.00     $ 466.80     $ 34,667.00     $ 466.80       10/27/2010       5285       11/4/2010     $ 27,733.60     $ 466.80     $ 27,733.60     $ 466.80  
Morris James LLP
     9/1 - 9/31/10     $ 31,957.50     $ 650.33     $ 31,957.50     $ 650.33       11/8/2010       5302       11/17/2010     $ 27,733.60     $ 466.80     $ 25,566.00     $ 650.33  
 
                                                                                            
Morris James LLP subtotal
                                                                                   $ 92,919.60     $ 1,373.70  
 
                                                                                            
 
                                                                                                
Young Conaway Stargatt & Taylor LLP
     4/30 - 5/31/10     $ 41,889.00     $ 0.00     $ 41,889.00     $ 0.00       7/16/2010       5083       7/21/2010     $ 33,511.20             $ 33,511.20          
Young Conaway Stargatt & Taylor LLP
     4/30 - 5/31/10     $ 0.00     $ 1,099.45     $ 0.00     $ 1,099.45       7/16/2010       5088       7/22/2010             $ 1,099.45             $ 1,099.45  
Young Conaway Stargatt & Taylor LLP
     6/1 - 6/30/10     $ 25,033.50     $ 636.75     $ 25,033.50     $ 636.75       8/9/2010       5129       8/12/2010     $ 20,026.80     $ 636.75     $ 20,026.80     $ 636.75  
Young Conaway Stargatt & Taylor LLP
     7/1 - 7/31/10     $ 19,341.00     $ 1,717.81     $ 19,341.00     $ 1,717.81       8/31/2010       5190       9/8/2010     $ 15,472.80     $ 1,717.81     $ 15,472.80     $ 1,717.81  
Young Conaway Stargatt & Taylor LLP
     4/30 - 7/31/10 *                                     10/19/2010       5274       10/27/2010     $ 17,152.70     $ 0.00     $ 17,152.70     $ 0.00  
Young Conaway Stargatt & Taylor LLP
     8/1 - 8/31/10     $ 12,374.00     $ 477.75     $ 12,374.00     $ 477.75       11/3/2010       5287       11/4/2010     $ 9,899.20     $ 477.75     $ 9,899.20     $ 477.75  
Young Conaway Stargatt & Taylor LLP
     9/1 - 9/31/10     $ 19,556.50     $ 1,097.91     $ 19,556.50     $ 1,097.91       11/12/2010       5306       11/17/2010     $ 15,645.20     $ 1,097.91     $ 15,645.20     $ 1,097.91  
 
                                                                                            
Young Conaway Stargatt & Taylor LLP subtotal
                                                                                   $ 111,707.90     $ 5,029.67  
 
                                                                                            
 
                                                                                                
Total
                                                                                   $ 2,106,848.90     $ 129,583.77  
 
                                                                                            
     
*   Denotes Payment on remaining amounts due through quarterly filings.

 

 

 

         
In re:
  MiddleBrook Pharmaceuticals, Inc.   Case No. 10-11485
 
  Debtor   Reporting Period: October 1 — October 31, 2010
                 
    October     Cumulative  
    2010     Filing to Date  
Gross Sales
   $ 0     $ 438,100  
Sales Reserves and Allowances
     (154,891 )     (3,489,735 )
 
            
 
                
Net Revenue
     (154,891 )     (3,051,635 )
 
                
Cost of Goods Sold
     0       860,166  
 
                
Salaries, Bonus & Temp Labor
     49,137       3,356,136  
Benefits, Payroll Taxes, Recruiting & Relocation
     31,872       112,561  
 
            
 
                
Subtotal: Salaries & Benefits
     81,009       3,468,697  
 
                
Stock-Based Compensation
     0       408,171  
Marketing & Advertising
     0       4,011  
Travel & Entertainment
     689       53,874  
Facilities and Equipment Related
     37,862       289,262  
Insurance
     62,061       460,796  
Distribution Expense
     13,379       359,749  
Office & General Lab Supplies
     4,753       11,827  
Consulting & Legal Fees
     275,359       3,252,013  
Patents & Licensing
     (51,375 )     214,613  
Audit, IR & Financial Fees
     5,510       (49,899 )
Non-Income Taxes
     15,201       28,606  
Depreciation and Amortization
     0       974,542  
Director and SAB Fees
     0       64,771  
 
            
 
                
Subtotal: FTE Expenses
     444,449       9,541,033  
 
            
 
                
Marketing Costs
     0       169,576  
Direct Project Costs
     0       53,114  
 
            
 
                
Total Expenses
     444,449       10,623,888  
 
            
 
                
Income (Loss) from Operations
     (599,340 )     (13,675,523 )
 
                
Interest Income
     7,896       15,231  
Other income (expense)
     14,343       34,322  
 
            
 
                
Net Income (Loss) Before Taxes
     (577,101 )     (13,625,969 )
 
            
 
                
Net Income (Loss)
   $ (577,093 )   $ (9,798,658 )
 
            

 

 

 

         
In re:
  MiddleBrook Pharmaceuticals, Inc.   Case No. 10-11485
 
  Debtor   Reporting Period: October 1 — October 31, 2010
                 
    Current     Petition  
    Month     Date  
Cash & Cash Equivalents
   $ 17,238,044     $ 5,257,718  
Accounts Receivable, net
     5,233       (490,487 )
Inventory
     0       2,213,158  
Prepaid and Other Current Assets
     612,310       3,397,106  
 
                
Property and Equipment
     0       14,341,773  
Accumulated Depreciation
     0       (12,460,925 )
 
            
Property and Equipment, net
     0       1,880,848  
 
                
Deposits and Other Assets
     521,114       680,580  
 
                
Intangible Assets
     0       11,877,529  
Accum. Amort - Intangibles
     0       (2,643,218 )
 
            
Intangible Assets, net
     0       9,234,311  
 
                
Total Assets
   $ 18,376,702     $ 22,173,234  
 
                
Accounts Payable - post-petition
     (239,953 )     0  
Accrued Payable to Lilly
     0       0  
Accrued Professional Fees
     (621,081 )     0  
 
            
Accounts Payable and Accrued Expenses - Post-Petition
     (868,329 )     0  
 
                
Accounts Payable - pre-petion
     (954,635 )     (1,214,588 )
Accrued Severance
     (2,445,504 )     (281,258 )
Accrued Payable to Lilly
     0       (5,252 )
Accrued Professional Fees
     (29,917 )     (199,917 )
Accrued R&D Costs
     0       (136,067 )
Accrued Keflex Copay Assistance
     0       (9,276 )
Accrued Moxatag Copay Assistance
     0       (3,705,035 )
Accrued Medicaid Rebates Payable
     (31,268 )     (563,001 )
Accrued Returns
     0       (1,945,797 )
Other Accrued Expenses
     0       (292,773 )
Wages Payable
     (228,223 )     (306,521 )
Employee Benefits Pay-401k
     0       (33,339 )
Employee Benefits - Flex Spending
     0       (3,899 )
Other Current Liabilities
     (2,261,875 )     (4,810,772 )
 
            
Accounts Payable and Accrued Expenses - Pre-Petition
     (5,951,421 )     (13,507,496 )
 
                
Deferred Contract Revenue - non-current (pre-petition)
     (3,500,000 )     (11,625,000 )
Deferred Lease Expense
     0       (18,340 )
 
                
Total Liabilities
   $ (10,319,751 )   $ (25,150,836 )
 
                
Common Stock
     (865,119 )     (865,119 )
Additional Paid in Capital
     (322,373,855 )     (312,281,358 )
 
                
Retained Earnings
     288,500,028       299,240,744  
YTD P&L
     26,681,995       16,883,336  
 
            
Accumulated Deficit
     315,182,022       316,124,080  
 
            
 
                
Stockholders’ Equity
   $ (8,056,951 )   $ 2,977,602  
 
                
Liabilities & Stockholders’ Equity
   $ (18,376,702 )   $ (22,173,234 )

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
          Debtor
  Reporting Period: October 1 — October 31, 2010
         
Other Post-petition liabilities        
Professional bankruptcy fees estimates - equity committee counsel
   $ 245,000  
Professional bankruptcy fees estimates - corporate and local counsel
     157,081  
Professional legal fees
     112,000  
Professional bankruptcy fees estimates - creditors’ committee cousel & FA
     100,000  
Professional bankruptcy fees - KCC estimate
     7,000  
 
      
 
        
Total of Accrued Professional Fees (acct 21210)
   $ 621,081  
 
      

 

 

 

         
In re:
  MiddleBrook Pharmaceuticals, Inc.   Case No. 10-11485
 
  Debtor   Reporting Period: October 1 — October 31, 2010
SUMMARY OF UNPAID POSTPETITION DEBTS
                                         
Vendor         Voucher       Current Trx                
ID     Vendor Name   Number   Document Date   Amount     Document Number   Document Type   Paid Date  
ALS002    
Alston & Bird LLP
   038621   8/31/2010   $ 19,846.00     AUG 20%   Invoice        
ALS002    
Alston & Bird LLP
   038680   9/30/2010   $ 20,841.60     SEP 20%   Invoice        
ALS002    
Alston & Bird LLP
   038681   9/30/2010   $ 80,366.40     SEP 80%   Invoice     11/4/2010  
ALS002    
Alston & Bird LLP
   038682   9/30/2010   $ 285.55     SEP EXP   Invoice     11/4/2010  
BAY002    
Bayard, P.A.
   038641   8/31/2010   $ 2,823.80     AUG 20%   Invoice        
BAY002    
Bayard, P.A.
   038685   9/30/2010   $ 2,134.70     SEP 20%   Invoice        
BAY002    
Bayard, P.A.
   038686   9/30/2010   $ 8,538.80     SEP 80%   Invoice     11/17/2010  
BAY002    
Bayard, P.A.
   038687   9/30/2010   $ 287.15     SEP EXP   Invoice     11/17/2010  
DEL009    
Delaware Secretary of State
   038665   11/1/2010   $ 8,539.99     3143577 Q3 2010   Invoice     11/17/2010  
DIC002    
Dickstein Shapiro LLP
   038634   8/31/2010   $ 5,791.00     AUG 20%   Invoice        
MOR008    
MORRIS JAMES LLP
   038563   8/30/2010   $ 9,905.00     JULY FEES 20%   Invoice        
MOR008    
MORRIS JAMES LLP
   038669   8/31/2010   $ 6,933.40     AUG FEES 20%   Invoice        
MOR008    
MORRIS JAMES LLP
   038668   8/31/2010   $ 27,733.60     AUG FEES 80%   Invoice     11/4/2010  
MOR008    
MORRIS JAMES LLP
   038670   8/31/2010   $ 466.80     AUG EXP   Invoice     11/4/2010  
MOR008    
MORRIS JAMES LLP
   038689   9/30/2010   $ 6,391.50     SEP 20%   Invoice        
MOR008    
MORRIS JAMES LLP
   038690   9/30/2010   $ 25,566.00     SEP 80%   Invoice     11/17/2010  
MOR008    
MORRIS JAMES LLP
   038691   9/30/2010   $ 650.33     SEP EXP   Invoice     11/17/2010  
YOU005    
Young Conaway Stargatt & Taylor LLP
   038700   8/31/2010   $ 2,474.80     AUG 20%   Invoice        
YOU005    
Young Conaway Stargatt & Taylor LLP
   038698   8/31/2010   $ 9,899.20     AUG 80%   Invoice     11/4/2010  
YOU005    
Young Conaway Stargatt & Taylor LLP
   038699   8/31/2010   $ 477.75     AUG EXP   Invoice     11/4/2010  
     
 
                              
       
 
                                
     
 
           $ 239,953.37                  
     
 
                              

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
          Debtor
  Reporting Period: October 1 — October 31, 2010
SUMMARY OF UNPAID POSTPETITION DEBTS
Attach aged listing of accounts payable.
                                                 
    Number of Days Past Due  
    Current     0-30     31-60     61-90     Over 90     Total  
Accounts Payable
     8,540       —       —       —       —       8,540  
Wages Payable (401k contributions)
     —       —       —       —       —       —  
Taxes Payable (payroll-related taxes)
     —       —       —       —       —       —  
Rent/Leases-Building
     —       —       —       —       —       —  
Rent/Leases-Equipment
     —       —       —       —       —       —  
Secured Debt/Adequate Protection Payments
     —       —       —       —       —       —  
Professional Fees
     —               145,062       86,351       —       231,413  
Amounts Due to Insiders*
     —       —       —       —       —       —  
Other: __________________________
     —       —       —       —       —       —  
Other: __________________________
     —       —       —       —       —       —  
Total Postpetition Debts
   $ 8,540       —     $ 145,062     $ 86,351       —     $ 239,953  
Explain how and when the Debtor intends to pay any past-due postpetition debts.

Professional fees are awaiting court approval or include remaining 20% of fees.
     
*   “Insider” is defined in 11 U.S.C. Section 101(31).
FORM MOR-4
(04/07)

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
          Debtor
  Reporting Period: October 1 — October 31, 2010
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
         
Accounts Receivable Reconciliation   Amount  
Total Accounts Receivable at the beginning of the reporting period
   $ 199,158.13  
+ Amounts billed during the period
     —  
- Amounts collected during the period
     (31,597.62 )
- Other adjustments during period
     (162,327.64 )
Total Accounts Receivable at the end of the reporting period
     5,232.87  
         
Accounts Receivable Aging   Amount  
0 - 30 days old
     —  
31 - 60 days old
     —  
61 - 90 days old
     3,759.36  
91+ days old
     1,473.51  
Total Accounts Receivable
     5,232.87  
Amount considered uncollectible (Bad Debt)
       
Accounts Receivable (Net)
   $ 5,232.87  
DEBTOR QUESTIONNAIRE
         
Must be completed each month   Yes   No
1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.
   X    
2. Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below.
       X
3. Have all postpetition tax returns been timely filed? If no, provide an explanation below.
   X    
4. Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below.
   X    
5. Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.
       X
 
Debtor sold certain assets pursuant to the Order Establishing Procedures for the Sale and/or abandonment of Certain Miscellaneous Property [Docket No. 263] dated September 7, 2010 (the “Order”). See the page titled “Sale of Assets “ for a listing of the miscellaneous property sold during the current period pursuant to the Order
FORM MOR-5
(04/07)

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
          Debtor
  Reporting Period: October 1 — October 31, 2010
SALE OF ASSETS
                             
Date of       Relationship               Purchase  
Purchase   Purchaser   to Debtor   Equipment   Model #   Serial #   Amount  
10/1/2010
   Mukaram Aziz   None   Bookshelf           $ 50.00  
10/1/2010
   Mukaram Aziz   None   3 Keyboards           $ 15.00  
10/1/2010
   Mukaram Aziz   None   Box of Network Cables           $ 35.00  
10/1/2010
   Patrick Onuoha   None   INFocus Projector   IN24       $ 150.00  
10/1/2010
   Mukaram Aziz   None   Reception Couch & Table & Mirror           $ 150.00  
10/6/2010
   Trey Tubbs   None   Lenovo X200 Laptop   X200   L3-ACG1H   $ 500.00  
10/15/2010
   Ben Hui   None   Lenovo X200 Laptop   X200   L3-ACG1F   $ 500.00  
10/15/2010
   MarkOne   None   Lenovo X200 Laptop   X200   LV-012R9   $ 552.50  
10/15/2010
   MarkOne   None   Lenovo X200 Laptop   X200   LV-012RD   $ 552.50  
10/15/2010
   MarkOne   None   Lenovo X200 Laptop   X200   LV-012R8   $ 552.50  
10/15/2010
   MarkOne   None   Lenovo X200 Laptop   X200   LV-01NPM   $ 552.50  
10/15/2010
   MarkOne   None   Lenovo X200 Laptop   X200   LV-01NP   $ 552.50  
10/15/2010
   MarkOne   None   HP LaserJet P4014N Printer   P4014N       $ 340.00  
10/15/2010
   MarkOne   None   3 - InFocus IN1100 Projectors   IN1100       $ 1,147.50  
10/15/2010
   MarkOne   None   19 - Samsung SyncMaster 920WM Monitors   920WM       $ 1,372.75  
10/20/2010
   Walco   None   2 - Left Return Desk, 4 drawer Credenza and 6 Shelf Bookcase           $ 1,500.00  
10/20/2010
   Walco   None   2 - Right Return Desk, 4 drawer Credenza and 6 Shelf Bookcase           $ 1,500.00  
10/20/2010
   Walco   None   2 - Desk, Side Desk, 4 Drawer Credenza and 6 Shelf Bookcase           $ 1,500.00  
10/20/2010
   Walco   None   5 - Five Drawer Lateral File Cabinet           $ 500.00  
10/20/2010
   Walco   None   3 - InFocus IN1100 Projectors   IN1100       $ 1,200.00  
10/20/2010
   Robert Warren   None   7-Samsung/Viewsonic 17" Monitors   Various       $ 105.00  
10/20/2010
   Robert Warren   None   4 Keyboards           $ 20.00  
10/20/2010
   Robert Warren   None   Power Strip           $ 20.00  
10/20/2010
   Robert Warren   None   PowerDsine 3006 POE Network Hub   3006 POE       $ 75.00  
10/25/2010
   Chandler Coy   None   HP Color LaserJet 5500DTN Printer   5500DTN       $ 400.00  
10/27/2010
   Nick Conder   None   Proxima DP6870   DP6870       $ 275.00  
10/27/2010
   Nick Conder   None   ASK Proxima M6   M6       $ 150.00  
10/27/2010
   Nick Conder   None   HP EO1013 KVM   EO1013       $ 75.00  
 
                          
 
                            
 
                   Total:   $ 14,342.75