UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 13, 2020
Nuvectra Corporation
(Exact Name of Registrant as Specified in its Charter)
Delaware |
001-37525 |
30-0513847 |
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification Number) |
5830 Granite Parkway, Suite 1100,
Plano, Texas 75024
(Address of principal executive offices, including zip code)
(214) 474-3107
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
Common stock, par value $0.001 |
NVTRQ |
OTC Markets |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company |
☒ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒
Item 7.01 Regulation FD Disclosure.
Monthly Operating Report
As previously disclosed, on November 12, 2019, Nuvectra Corporation (the “Company”) filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code (the “Chapter 11 Case”) in the U.S. Bankruptcy Court for the Eastern District of Texas (the “Bankruptcy Court”). The Chapter 11 Case is being administered under the caption In re Nuvectra Corporation, Case No. 19-43090.
On February 13, 2020, the Company filed with the Bankruptcy Court a monthly operating report for the month ended January 31, 2020 (the “Monthly Operating Report”). The Monthly Operating Report is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference into this Item 7.01.
The information contained in this Item 7.01, including Exhibit 99.1 incorporated by reference herein, is being furnished under Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any of the Company’s filings under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof and regardless of any general incorporation language in such filings, except to the extent expressly set forth by specific reference in such a filing. The filing of this Current Report on Form 8-K shall not be deemed an admission as to the materiality of any information herein that is required to be disclosed solely by reason of Regulation FD.
Cautionary Note Regarding the Monthly Operating Report
Investors and potential investors should not place undue reliance on the information contained in the Monthly Operating Report, which was not prepared for the purpose of providing the basis for an investment decision relating to any securities of the Company. The Monthly Operating Report is limited in scope, covers a limited time period, and has been prepared solely for the purpose of complying with the requirements of the Bankruptcy Court. The Monthly Operating Report was not audited or reviewed by independent accountants, is in a format prescribed by applicable bankruptcy laws, and is subject to future adjustment and reconciliation. The financial information in the Monthly Operating Report was not prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and, therefore, may exclude items required by GAAP, such as certain reclassifications, non-cash items, accruals, valuations and disclosures. The Monthly Operating Report also contains information for a period which is different from the historical periods required in the Company’s reports under the Exchange Act, and such information might not be indicative of the Company’s financial condition or operating results that would be reflected in the Company’s financial statements or its reports under the Exchange Act. There can be no assurance that, from the perspective of an investor or potential investor in the Company’s securities, the Monthly Operating Report is complete. Results and information set forth in the Monthly Operating Report should not be viewed as indicative of future results.
Additional Information Regarding the Chapter 11 Case
Filings with the Bankruptcy Court related to the Chapter 11 Case are available electronically at http://www.kccllc.net/nuvectra. Information contained on, or that can be accessed through, such website or the Bankruptcy Court is not part of this Current Report on Form 8-K, and the Company disclaims liability for any such information.
Item 9.01 Financial Statements and Exhibits.
(d) | Exhibits |
99.1 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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NUVECTRA CORPORATION |
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Date: February 13, 2020 |
/s/ Jennifer J. Kosharek |
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Jennifer J. Kosharek |
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Chief Financial Officer |
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Exhibit 99.1
Monthly Operating Report |
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ACCRUAL BASIS |
CASE NAME: |
Nuvectra Corporation |
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CASE NUMBER: |
19-43090 |
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JUDGE: |
Honorable Brenda T. Rhoades |
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UNITED STATES BANKRUPTCY COURT |
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NORTHERN & EASTERN DISTRICTS OF TEXAS |
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REGION 6 |
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MONTHLY OPERATING REPORT |
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MONTH ENDING: |
January 31 |
2020 |
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MONTH |
YEAR |
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IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT, AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY) IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE. |
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RESPONSIBLE PARTY: |
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/s/ Jennifer J. Kosharek |
Chief Financial Officer |
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ORIGINAL SIGNATURE OF RESPONSIBLE PARTY |
TITLE |
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Jennifer J. Kosharek |
2/13/2020 |
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PRINTED NAME OF RESPONSIBLE PARTY |
DATE |
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PREPARER: |
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/s/ Jennifer J. Kosharek |
Chief Financial Officer |
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ORIGINAL SIGNATURE OF PREPARER |
TITLE |
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Jennifer J. Kosharek |
2/13/2020 |
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PRINTED NAME OF PREPARER |
DATE |
Monthly Operating Report
ACCRUAL BASIS-1
CASE NAME: |
Nuvectra Corporation |
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CASE NUMBER: |
19-43090 |
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COMPARATIVE BALANCE SHEET |
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SCHEDULE |
NOVEMBER 30 |
DECEMBER 31 |
JANUARY 31 |
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ASSETS |
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1. |
UNRESTRICTED CASH |
$ | 9,769,668 | $ | 9,565,361 | $ | 8,286,353 | $ | 7,292,985 | ||||||||||
2. |
RESTRICTED CASH |
$ | - | $ | - | $ | - | $ | - | ||||||||||
3. |
TOTAL CASH |
$ | 9,769,668 | $ | 9,565,361 | $ | 8,286,353 | $ | 7,292,985 | ||||||||||
4. |
ACCOUNTS RECEIVABLE (NET) |
$ | 5,616,444 | $ | 4,270,444 | $ | 3,025,206 | $ | 1,811,492 | ||||||||||
5. |
INVENTORY |
$ | 13,714,792 | $ | 13,503,589 | $ | 13,049,987 | $ | 12,997,714 | ||||||||||
6. |
NOTES RECEIVABLE |
$ | - | $ | - | $ | - | $ | - | ||||||||||
7. |
PREPAID EXPENSES |
$ | 2,075,993 | $ | 1,971,200 | $ | 1,696,383 | $ | 1,457,476 | ||||||||||
8. |
OTHER (ATTACH LIST) |
$ | - | $ | - | $ | - | $ | - | ||||||||||
9. |
TOTAL CURRENT ASSETS |
$ | 31,176,897 | $ | 29,310,594 | $ | 26,057,929 | $ | 23,559,667 | ||||||||||
10. |
PROPERTY, PLANT & EQUIPMENT |
$ | 5,149,385 | $ | 11,909,274 | $ | 11,909,274 | $ | 11,909,274 | ||||||||||
11. |
LESS: ACCUMULATED DEPRECIATION/DEPLETION |
$ | (6,815,209 | ) | $ | (6,909,877 | ) | $ | (7,003,191 | ) | |||||||||
12. |
NET PROPERTY, PLANT & EQUIPMENT |
$ | 5,149,385 | $ | 5,094,064 | $ | 4,999,397 | $ | 4,906,083 | ||||||||||
13. |
DUE FROM INSIDERS |
$ | - | $ | - | $ | - | $ | - | ||||||||||
14. |
OTHER ASSETS - NET OF AMORTIZATION (ATTACH LIST) |
$ | - | $ | - | $ | - | $ | - | ||||||||||
15. |
OTHER (ATTACH LIST) |
$ | 1,457,176 | $ | 1,438,411 | $ | 1,400,555 | $ | 1,362,368 | ||||||||||
16. |
TOTAL ASSETS |
$ | 37,783,458 | $ | 35,843,070 | $ | 32,457,881 | $ | 29,828,118 | ||||||||||
POSTPETITION LIABILITIES |
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17. |
ACCOUNTS PAYABLE |
$ | 68,036 | $ | 225,061 | $ | 46,536 | ||||||||||||
18. |
TAXES PAYABLE |
$ | (14,628 | ) | $ | (20,633 | ) | $ | (24,500 | ) | |||||||||
19. |
NOTES PAYABLE |
$ | - | $ | - | $ | - | ||||||||||||
20. |
PROFESSIONAL FEES |
$ | 369,096 | $ | 984,480 | $ | 971,804 | ||||||||||||
21. |
SECURED DEBT |
$ | - | $ | - | $ | - | ||||||||||||
22. |
OTHER (ATTACH LIST) |
$ | 559,952 | $ | 836,758 | $ | 322,953 | ||||||||||||
23. |
TOTAL POSTPETITION LIABILITIES |
$ | 982,457 | $ | 2,025,665 | $ | 1,316,793 | ||||||||||||
PREPETITION LIABILITIES |
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24. |
SECURED DEBT |
$ | 10,118,505 | $ | 10,168,789 | $ | 10,269,356 | $ | 10,369,923 | ||||||||||
25. |
PRIORITY DEBT |
$ | 1,751,288 | $ | 900,091 | $ | 600,548 | $ | 450,761 | ||||||||||
26. |
UNSECURED DEBT |
$ | 9,286,640 | $ | 9,345,809 | $ | 8,898,627 | $ | 8,662,818 | ||||||||||
27. |
OTHER (ATTACH LIST) |
$ | - | $ | - | $ | - | $ | - | ||||||||||
28. |
TOTAL PREPETITION LIABILITIES |
$ | 21,156,433 | $ | 20,414,689 | $ | 19,768,531 | $ | 19,483,501 | ||||||||||
29. |
TOTAL LIABILITIES |
$ | 21,156,433 | $ | 21,397,146 | $ | 21,794,196 | $ | 20,800,294 | ||||||||||
EQUITY |
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30. |
PREPETITION OWNERS' EQUITY |
$ | 96,444,483 | $ | 16,627,024 | $ | 14,445,924 | $ | 10,663,685 | ||||||||||
31. |
POSTPETITION CUMULATIVE PROFIT OR (LOSS) |
$ | (79,817,458 | ) | $ | (2,181,101 | ) | $ | (3,782,239 | ) | $ | (1,635,861 | ) | ||||||
32. |
DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION) |
$ | - | $ | - | $ | - | $ | - | ||||||||||
33. |
TOTAL EQUITY |
$ | 16,627,024 | $ | 14,445,924 | $ | 10,663,685 | $ | 9,027,824 | ||||||||||
34. |
TOTAL LIABILITIES & OWNERS' EQUITY |
$ | 37,783,458 | $ | 35,843,070 | $ | 32,457,881 | $ | 29,828,118 |
GL Account Name |
GL Acct # |
Description |
Notes |
Dec. 31, 2019 |
Jan. 31, 2020 |
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ROU Operating Leases - Noncurrent |
16010 |
ASC 842 Right of Use Operating Leases Asset |
Account reconciliation available upon request |
$ | 1,418,198 | $ | 1,418,198 | |||||||
ROU Operating Leases - Noncurrent |
16010 |
ASC 842 Right of Use Operating Leases Asset |
Account reconciliation available upon request |
$ | 415,559 | $ | 415,559 | |||||||
Operating Leases Noncurrent Amortizati |
16011 |
ASC 842 Right of Use Operating Leases Asset Amortization |
Account reconciliation available upon request |
$ | (349,155 | ) | $ | (379,546 | ) | |||||
Operating Leases Noncurrent Amortizati |
16011 |
ASC 842 Right of Use Operating Leases Asset Amortization |
Account reconciliation available upon request |
$ | (84,047 | ) | $ | (91,842 | ) | |||||
$ | 1,400,555 | $ | 1,362,368 | |||||||||||
Per Page 1 |
$ | 1,400,555 | $ | 1,362,368 | ||||||||||
Difference |
$ | - | $ | - |
(CR) / DR Balance |
(CR) / DR POST - Petition Portion Only |
(CR) / DR Pre-Petition Still Existing at |
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GL Account Name |
Notes |
Jan. 31, 2020 |
GL Acct # |
Jan. 31, 2020 |
Jan. 31, 2020 |
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Manual AP Accrual |
Post petition amount per GL reconciliation. Services incurred not yet invoiced. |
(1,524,542 | ) | 20106 | (1,231,425 | ) | (293,117 | ) | ||||||||
Received, Not Invoiced |
- | 20110 | - | - | ||||||||||||
Accrued Warranty |
No update to accrual post petition. No new trials/perms. |
(282,084 | ) | 20250 | - | (282,084 | ) | |||||||||
Other Accrued Expenses |
Blaine property taxes & other accruals, if applicable |
(6,969 | ) | 20251 | (6,969 | ) | - | |||||||||
Deferred Lease Payments |
GAAP Straight Line Rent Expense Calculation. Difference in actual rent pymt and straight line amortization (also see ROU accts) |
(17,216 | ) | 20602 | (935 | ) | (16,281 | ) | ||||||||
Operating Lease Liability- Noncurrent |
ASC 842 Right of Use Operating Leases Liability. Note this liability was booked when 842 implemented (along with the asset) and is decreased every month (along with the asset which gets amortized) as we progress through the leases |
(1,714,016 | ) | 20610 | - | (1,714,016 | ) | |||||||||
TOTAL OTHER LIABILITIES |
(3,544,827 | ) | ||||||||||||||
Accrued Salaries & Wages |
Accrual all post petition |
0 | 20210 | - | - | |||||||||||
Accrued PTO |
Employee balances re-set to 80 hours max on 12/31/19. Assuming most accrued pre-petition. |
(204,778 | ) | 20211 | - | (204,778 | ) | |||||||||
Accrued Commissions |
Guarantees and earned amounts (plus auto allow) post-petition not yet paid at 12/31 |
(41,000 | ) | 20215 | (41,000 | ) | - | |||||||||
Accrued Medical |
All paid / remitted |
- | 20225 | - | - | |||||||||||
Accrued H.S.A & Flex Benefits |
Pay day 1/3/20 not remitted by 12/31/19. All post-petition. |
(1,273 | ) | 20230 | (1,273 | ) | - | |||||||||
Accrued FSA |
Unable to separate pre/post. Assuming most accrued pre-petition. |
(14,446 | ) | 20231 | - | (14,446 | ) | |||||||||
Accrued Vision |
All paid / remitted |
- | 20232 | - | - | |||||||||||
Accrued 401K |
Pay day 1/31/20 not remitted by 1/31/20. All post-petition. |
(16,994 | ) | 20235 | - | (16,994 | ) | |||||||||
Accrued Other Payroll |
Post-petition amount per GL reconciliation for expense reports not yet paid. |
(259,166 | ) | 20240 | (13,155 | ) | (246,011 | ) | ||||||||
Accrued Payroll Taxes |
Accrual all post petition |
- | 20245 | - | - | |||||||||||
Accrued Sales Tax |
The debit balance is primarily caused by a $30K refund due from the state of Ohio for corrections made in Sept. between customer billings and our remittance to the state. We have requested a refund check but it will take ~ 6 months due to backlog. This account is fully related to pre-petition as we have no post-petition trials/perms generating sales tax (revisions are immaterial). |
31,469 | 20255 | - | 31,469 | |||||||||||
Accrued Use Tax |
0 | 20260 | - | - | ||||||||||||
Accrued State Taxes |
(15,095 | ) | 20405 | |||||||||||||
TOTAL PRIORITY LIABILITIES |
(521,284 | ) | (450,761 | ) | ||||||||||||
TOTAL TRADE A/P |
(6,364,260 | ) | ||||||||||||||
TOTAL THIS TAB |
(10,430,372 | ) | ||||||||||||||
TOTAL PER PAGE 1 TAB (Liabilities w/o Secured Debt) |
(10,430,372 | ) | ||||||||||||||
(1,294,757 | ) | |||||||||||||||
Professional Fees Separately Disclosed |
(971,804 | ) | ||||||||||||||
Total Post Petition Liabilities (Other) |
(322,953 | ) |
Monthly Operating Report
ACCRUAL BASIS-2
CASE NAME: |
Nuvectra Corporation |
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CASE NUMBER: |
19-43090 |
INCOME STATEMENT |
NOVEMBER 13-30 |
DECEMBER 1-31 |
JANUARY 1-31 |
MONTH |
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REVENUES |
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1. |
GROSS REVENUES |
$ | 191,673 | $ | 314,168 | $ | 67,344 | |||||||||||
2. |
LESS: RETURNS & DISCOUNTS |
$ | 188,618 | $ | 332,378 | $ | 279,983 | |||||||||||
3. |
NET REVENUE |
$ | 3,055 | $ | (18,210 | ) | $ | (212,639 | ) | $ | - | |||||||
COST OF GOODS SOLD |
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4. |
MATERIAL |
$ | 211,203 | $ | 182,556 | $ | 113,945 | |||||||||||
5. |
DIRECT LABOR |
$ | - | $ | - | $ | - | $ | - | |||||||||
6. |
DIRECT OVERHEAD |
$ | - | $ | - | $ | - | $ | - | |||||||||
7. |
TOTAL COST OF GOODS SOLD |
$ | 211,203 | $ | 182,556 | $ | 113,945 | $ | - | |||||||||
8. |
GROSS PROFIT (LOSS) |
$ | (208,148 | ) | $ | (200,766 | ) | $ | (326,584 | ) | $ | - | ||||||
OPERATING EXPENSES |
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9. |
OFFICER / INSIDER COMPENSATION |
$ | 89,159 | $ | 114,563 | $ | 193,941 | |||||||||||
10. |
SELLING & MARKETING |
$ | 293,728 | $ | 1,351,157 | $ | 156,097 | |||||||||||
11. |
GENERAL & ADMINISTRATIVE |
$ | 1,051,830 | $ | 1,050,582 | $ | 343,903 | |||||||||||
12. |
RENT & LEASE |
$ | 43,580 | $ | 70,855 | $ | 69,651 | |||||||||||
13. |
OTHER (ATTACH LIST) |
$ | - | $ | - | $ | - | $ | - | |||||||||
14. |
TOTAL OPERATING EXPENSES |
$ | 1,478,297 | $ | 2,587,157 | $ | 763,592 | $ | - | |||||||||
15. |
INCOME (LOSS) BEFORE NON-OPERATING INCOME & EXPENSE |
$ | (1,686,444 | ) | $ | (2,787,923 | ) | $ | (1,090,177 | ) | $ | - | ||||||
OTHER INCOME & EXPENSES |
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16. |
NON-OPERATING INCOME (ATTACH LIST) |
$ | (2,258 | ) | $ | (99 | ) | $ | (7 | ) | ||||||||
17. |
NON-OPERATING EXPENSE (ATTACH LIST) |
$ | - | $ | - | $ | - | $ | - | |||||||||
18. |
INTEREST EXPENSE |
$ | 72,498 | $ | 284,363 | $ | 132,888 | |||||||||||
19. |
DEPRECIATION / DEPLETION |
$ | 55,320 | $ | 94,668 | $ | 93,314 | |||||||||||
20. |
AMORTIZATION |
$ | - | $ | - | $ | - | $ | - | |||||||||
21. |
OTHER (ATTACH LIST) |
$ | - | $ | - | $ | - | $ | - | |||||||||
22. |
NET OTHER (INCOME) & EXPENSES |
$ | 125,560 | $ | 378,932 | $ | 226,195 | $ | - | |||||||||
REORGANIZATION EXPENSES |
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23. |
PROFESSIONAL FEES |
$ | 369,096 | $ | 615,384 | $ | 278,272 | |||||||||||
24. |
U.S. TRUSTEE FEES |
$ | - | $ | - | $ | 41,217 | |||||||||||
25. |
OTHER (ATTACH LIST) |
$ | - | $ | - | $ | - | $ | - | |||||||||
26. |
TOTAL REORGANIZATION EXPENSES |
$ | 369,096 | $ | 615,384 | $ | 319,489 | $ | - | |||||||||
27. |
INCOME TAX |
$ | - | $ | - | $ | - | |||||||||||
28. |
NET PROFIT (LOSS) |
$ | (2,181,101 | ) | $ | (3,782,239 | ) | $ | (1,635,861 | ) | $ | - |
GL Account Name |
GL Acct # |
GL Entries |
Description |
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Other Income/Expense |
80120 | $ | (7 | ) |
SVB bank account revenue share |
Monthly Operating Report
ACCRUAL BASIS-3
CASE NAME: |
Nuvectra Corporation |
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CASE NUMBER: |
19-43090 |
CASH RECEIPTS AND DISBURSEMENTS |
NOVEMBER 13-30 |
DECEMBER 1-31 |
JANUARY 1-31 |
QUARTER |
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1. |
CASH - BEGINNING OF MONTH |
$ | 9,769,668 | $ | 9,565,361 | $ | 8,286,353 | |||||||||||
RECEIPTS FROM OPERATIONS |
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2. |
CASH SALES |
$ | - | $ | - | |||||||||||||
COLLECTION OF ACCOUNTS RECEIVABLE |
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3. |
PREPETITION |
$ | 1,351,696 | $ | 1,351,696 | |||||||||||||
4. |
POSTPETITION |
$ | - | $ | 1,235,009 | $ | 1,140,688 | $ | 2,375,697 | |||||||||
5. |
TOTAL OPERATING RECEIPTS |
$ | 1,351,696 | $ | 1,235,009 | $ | 1,140,688 | $ | 3,727,393 | |||||||||
NON-OPERATING RECEIPTS |
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6. |
LOANS & ADVANCES (ATTACH LIST) |
$ | - | $ | - | |||||||||||||
7. |
SALE OF ASSETS |
$ | - | $ | - | |||||||||||||
8. |
OTHER (ATTACH LIST) |
$ | 22,334 | $ | 29,346 | $ | 61,644 | $ | 113,324 | |||||||||
9. |
TOTAL NON-OPERATING RECEIPTS |
$ | 22,334 | $ | 29,346 | $ | 61,644 | $ | 113,324 | |||||||||
10. |
TOTAL RECEIPTS |
$ | 1,374,030 | $ | 1,264,354 | $ | 1,202,333 | $ | 3,840,717 | |||||||||
11. |
TOTAL CASH AVAILABLE |
$ | 11,143,698 | $ | 10,829,715 | $ | 9,488,686 | |||||||||||
OPERATING DISBURSEMENTS |
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12. |
NET PAYROLL |
$ | 1,086,763 | $ | 1,676,732 | $ | 843,551 | $ | 3,607,046 | |||||||||
13. |
PAYROLL TAXES PAID |
$ | 40,237 | $ | 90,933 | $ | 77,096 | $ | 208,266 | |||||||||
14. |
SALES, USE & OTHER TAXES PAID |
$ | 18,537 | $ | 51,457 | $ | 24,231 | $ | 94,225 | |||||||||
15. |
SECURED / RENTAL / LEASES |
$ | - | $ | 318,821 | $ | 215,652 | $ | 534,473 | |||||||||
16. |
UTILITIES |
$ | - | $ | - | |||||||||||||
17. |
INSURANCE |
$ | 207,471 | $ | 176,341 | $ | 106,402 | $ | 490,214 | |||||||||
18. |
INVENTORY PURCHASES |
$ | - | $ | - | |||||||||||||
19. |
VEHICLE EXPENSES |
$ | - | $ | - | |||||||||||||
20. |
TRAVEL |
$ | - | $ | - | |||||||||||||
21. |
ENTERTAINMENT |
$ | - | $ | - | |||||||||||||
22. |
REPAIRS & MAINTENANCE |
$ | - | $ | - | |||||||||||||
23. |
SUPPLIES |
$ | - | $ | - | |||||||||||||
24. |
ADVERTISING |
$ | - | $ | - | |||||||||||||
25. |
OTHER (ATTACH LIST) |
$ | 225,330 | $ | 229,076 | $ | 596,605 | $ | 1,051,010 | |||||||||
26. |
TOTAL OPERATING DISBURSEMENTS |
$ | 1,578,337 | $ | 2,543,362 | $ | 1,863,536 | $ | 5,985,235 | |||||||||
REORGANIZATION EXPENSES |
||||||||||||||||||
27. |
PROFESSIONAL FEES |
$ | - | $ | - | $ | 290,948 | $ | 290,948 | |||||||||
28. |
U.S. TRUSTEE FEES |
$ | - | $ | - | $ | 41,217 | $ | 41,217 | |||||||||
29. |
OTHER (ATTACH LIST) |
$ | - | $ | - | |||||||||||||
30. |
TOTAL REORGANIZATION EXPENSES |
$ | - | $ | - | $ | 332,165 | $ | 332,165 | |||||||||
31. |
TOTAL DISBURSEMENTS |
$ | 1,578,337 | $ | 2,543,362 | $ | 2,195,701 | $ | 6,317,400 | |||||||||
32. |
NET CASH FLOW |
$ | (204,307 | ) | $ | (1,279,007 | ) | $ | (993,368 | ) | $ | (2,476,682 | ) | |||||
33. |
CASH - END OF MONTH |
$ | 9,565,361 | $ | 8,286,353 | $ | 7,292,985 |
NON-OPERATING RECEIPTS |
|||
10,846 |
Non-Op Receipts - Interest on Asset Management Account Total |
||
9,702 |
Non-Op Receipts Other - SVB Revenue Share |
||
Non-Op Receipts Other - Payroll-related: Return of Rejected Child Support Payment Total |
|||
6,800 |
Non-Op Receipts Other - Vendor Deposit Refund |
||
34,297 |
Non-Op Receipts Other - Payroll-related: Monthly Wageworks reimbursement (HSA, FSA, HRA, COBRA) Total |
||
61,644 |
8. OTHER |
||
OPERATING DISBURSEMENTS |
|||
247 |
Op Disbursement - Other - Management Fee on Investment/Wageworks Acct Total |
||
84,421 |
Op Disbursement - Other - Payroll-related: H.S.A./Acensus 401K/ F.S.A |
||
4,578 |
Op Disbursement - Other - Bank Fee |
||
20,000 |
Op Disbursement - Other -BOD payments |
||
487,360 |
Op Disbursement - Other Vendors Total |
||
596,605 |
25. OTHER |
||
41,217 |
Op Disbursement - Other - US Trustee |
||
290,948 |
Op Disbursement - Other - Legal fees |
||
332,165 |
Total Reorganization Expenses |
Monthly Operating Report
ACCRUAL BASIS-4
CASE NAME: |
Nuvectra Corporation |
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|
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CASE NUMBER: |
19-43090 |
ACCOUNTS RECEIVABLE AGING |
SCHEDULE |
NOVEMBER 30 |
DECEMBER 31 |
JANUARY 31 |
||||||||||||||||||||
1. | 0-30 | $ | 5,148,863 | $ | 3,431,923 | $ | 1,620,337 | $ | 80,132 | |||||||||||||||
2. | 31-60 | $ | 251,608 | $ | 511,331 | $ | 882,820 | $ | 810,452 | |||||||||||||||
3. | 61-90 | $ | 76,541 | $ | 158,661 | $ | 328,917 | $ | 529,291 | |||||||||||||||
4. |
91+ |
$ | 717,900 | $ | 746,997 | $ | 766,957 | $ | 965,442 | |||||||||||||||
5. |
TOTAL ACCOUNTS RECEIVABLE |
$ | 6,194,913 | $ | 4,848,912 | $ | 3,599,032 | $ | 2,385,317 | |||||||||||||||
6. |
AMOUNT CONSIDERED UNCOLLECTIBLE |
$ | (578,468 | ) | $ | (578,468 | ) | $ | (573,826 | ) | $ | (573,826 | ) | |||||||||||
7. |
ACCOUNTS RECEIVABLE (NET) |
$ | 5,616,444 | $ | 4,270,444 | $ | 3,025,206 | $ | 1,811,492 | |||||||||||||||
AGING OF POSTPETITION TAXES AND PAYABLES |
MONTH: |
January 31 2020 |
||||||||||||||||||||||
0-30 | 31-60 | 61-90 |
91+ |
|||||||||||||||||||||
TAXES PAYABLE |
DAYS |
DAYS |
DAYS |
DAYS |
TOTAL |
|||||||||||||||||||
1. |
FEDERAL |
$ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
2. |
STATE |
$ | (24,500 | ) | $ | - | $ | - | $ | - | $ | (24,500 | ) | |||||||||||
3. |
LOCAL |
$ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
4. |
OTHER (ATTACH LIST) |
$ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
5. |
TOTAL TAXES PAYABLE |
$ | (24,500 | ) | $ | - | $ | - | $ | - | $ | (24,500 | ) | |||||||||||
6. |
ACCOUNTS PAYABLE |
$ | 44,901 | $ | 1,635 | $ | 0 | $ | 0 | $ | 46,536 | |||||||||||||
STATUS OF POSTPETITION TAXES |
MONTH: |
January 31 2020 |
||||||||||||||||||||||
BEGINNING |
AMOUNT |
ENDING |
||||||||||||||||||||||
TAX |
WITHHELD AND/ |
AMOUNT |
TAX |
|||||||||||||||||||||
FEDERAL |
LIABILITY |
0R ACCRUED |
PAID |
LIABILITY |
||||||||||||||||||||
1. |
WITHHOLDING |
Payroll |
$ | - | $ | 133,082 | $ | 133,082 | $ | - | ||||||||||||||
2. |
FICA-EMPLOYEE |
Payroll |
$ | - | $ | 65,891 | $ | 65,891 | $ | - | ||||||||||||||
3. |
FICA-EMPLOYER |
Payroll |
$ | - | $ | 65,891 | $ | 65,891 | $ | - | ||||||||||||||
4. |
UNEMPLOYMENT |
Payroll |
$ | - | $ | - | $ | - | $ | - | ||||||||||||||
5. |
INCOME |
$ | - | $ | - | $ | - | $ | - | |||||||||||||||
6. |
OTHER (ATTACH LIST) |
$ | - | $ | - | $ | - | $ | - | |||||||||||||||
7. |
TOTAL FEDERAL TAXES |
$ | - | $ | 264,865 | $ | 264,865 | $ | - | |||||||||||||||
STATE AND LOCAL |
||||||||||||||||||||||||
8. |
WITHHOLDING |
Payroll |
$ | - | $ | 35,465 | $ | 35,465 | $ | - | ||||||||||||||
9. |
SALES |
$ | (20,633 | ) | $ | - | $ | 10,836 | $ | (31,469 | ) | |||||||||||||
10. |
EXCISE |
$ | - | $ | - | $ | - | $ | - | |||||||||||||||
11. |
UNEMPLOYMENT |
Payroll |
$ | - | $ | - | $ | - | $ | - | ||||||||||||||
12. |
REAL PROPERTY |
$ | - | $ | 6,969 | $ | - | $ | 6,969 | |||||||||||||||
13. |
PERSONAL PROPERTY |
$ | - | $ | - | $ | - | $ | - | |||||||||||||||
14. |
OTHER (ATTACH LIST) |
$ | - | $ | - | $ | - | $ | - | |||||||||||||||
15. |
TOTAL STATE & LOCAL |
$ | (20,633 | ) | $ | 42,434 | $ | 46,302 | $ | (24,500 | ) | |||||||||||||
16. |
TOTAL TAXES |
$ | (20,633 | ) | $ | 307,299 | $ | 311,166 | $ | (24,500 | ) |
Monthly Operating Report
ACCRUAL BASIS-5
CASE NAME: |
Nuvectra Corporation |
||||||
|
|
|
|
||||
CASE NUMBER: |
19-43090 |
MONTH: |
January 31 2020 |
||||||||||||||||||||||
BANK RECONCILIATIONS |
|||||||||||||||||||||||
Account #1 |
Account #2 |
Account #3 |
Account #4 |
||||||||||||||||||||
A. BANK: |
Silicon Valley Bank |
Silicon Valley Bank |
Silicon Valley Bank |
Silicon Valley Bank |
|||||||||||||||||||
B. ACCOUNT NUMBER: |
0826 | 2403 | 0906 | 8007 |
TOTAL |
||||||||||||||||||
C. PURPOSE (TYPE): |
Analysis Checking |
Sweep Investment |
Analysis Checking Lockbox |
Utilities |
|||||||||||||||||||
1. |
BALANCE PER BANK STATEMENT |
$ | 60,321 | $ | 4,864,444 | $ | - | $ | 41,533 | $ | 4,966,299 | ||||||||||||
2. |
ADD: TOTAL DEPOSITS NOT CREDITED |
$ | - | $ | 39,575 | $ | - | $ | - | $ | 39,575 | ||||||||||||
3. |
SUBTRACT: OUTSTANDING CHECKS |
$ | 294,367 | $ | - | $ | - | $ | - | $ | 294,367 | ||||||||||||
4. |
OTHER RECONCILING ITEMS |
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
5. |
MONTH END BALANCE PER BOOKS |
$ | (234,046 | ) | $ | 4,904,019 | $ | - | $ | 41,533 | $ | 4,711,506 | |||||||||||
6. |
NUMBER OF LAST CHECK WRITTEN |
7427 | N/A | N/A | N/A | ||||||||||||||||||
INVESTMENT ACCOUNTS |
|||||||||||||||||||||||
DATE OF |
TYPE OF |
PURCHASE |
CURRENT |
||||||||||||||||||||
BANK, ACCOUNT NAME & NUMBER |
PURCHASE |
INSTRUMENT |
PRICE |
VALUE |
|||||||||||||||||||
7. |
Silicon Valley Bank Asset Mgmnt x1350 |
N/A | N/A | N/A | $ | 2,581,479 | |||||||||||||||||
8. | |||||||||||||||||||||||
9. | |||||||||||||||||||||||
10. | |||||||||||||||||||||||
11. |
TOTAL INVESTMENTS |
$ | 2,581,479 | ||||||||||||||||||||
CASH |
|||||||||||||||||||||||
12. |
CURRENCY ON HAND |
$ | - | ||||||||||||||||||||
13. |
TOTAL CASH - END OF MONTH |
$ | 7,292,985 |
Monthly Operating Report
ACCRUAL BASIS-6
CASE NAME: |
Nuvectra Corporation |
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|
|||
CASE NUMBER: |
19-43090 |
MONTH: |
January 1-31 |
2020 |
||||||||||||||||
PAYMENTS TO INSIDERS AND PROFESSIONALS |
||||||||||||||||||
INSIDERS |
||||||||||||||||||
TYPE OF |
AMOUNT |
TOTAL PAID |
||||||||||||||||
NAME |
PAYMENT |
PAID |
TO DATE |
|||||||||||||||
1. |
Fred Parks |
Payroll |
$ | 36,799 | $ | 81,306 | ||||||||||||
2. |
Jennifer Kosharek |
Payroll |
$ | 27,042 | $ | 58,816 | ||||||||||||
3. |
Ben Tranchina |
Payroll |
$ | 26,020 | $ | 54,373 | ||||||||||||
4. |
Bonnie Schmidt |
Payroll |
$ | 14,592 | $ | 35,364 | ||||||||||||
5. | N/A | N/A | $ | - | $ | - | ||||||||||||
6. |
TOTAL PAYMENTS TO INSIDERS |
$ | 104,453 | $ | 229,859 |
PROFESSIONALS | ||||||||||||||||||||||
DATE OF COURT | TOTAL | |||||||||||||||||||||
ORDER AUTHORIZING | AMOUNT | AMOUNT | TOTAL PAID | INCURRED | ||||||||||||||||||
NAME | PAYMENT | APPROVED | PAID | TO DATE | & UNPAID | |||||||||||||||||
1. |
Norton Rose Fulbright LLP |
N/A | $ | - | $ | - | $ | - | $ | 390,341 | ||||||||||||
2. |
Dorsey & Whitney LLP |
N/A | $ | - | $ | - | $ | - | $ | 252,473 | ||||||||||||
3. |
Alvarez & Marsal LLC |
N/A | $ | - | $ | - | $ | - | $ | 258,990 | ||||||||||||
4. |
Stout |
N/A | N/A | $ | 152,336 | $ | 152,336 | $ | - | |||||||||||||
5. |
KCC |
N/A | N/A | $ | 138,611 | $ | 138,611 | $ | 70,000 | |||||||||||||
6. |
Lenders (SVB & Oxford) |
N/A | $ | - | $ | - | $ | - | $ | - | ||||||||||||
7. |
Unsecured Creditors Committee |
N/A | $ | - | $ | - | $ | - | $ | - | ||||||||||||
8. | TOTAL PAYMENTS TO PROFESSIONALS | $ | 290,948 | $ | 290,948 | $ |
971,804 |
POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE |
|||||||||||||||||||
PROTECTION PAYMENTS |
|||||||||||||||||||
SCHEDULED |
AMOUNTS |
||||||||||||||||||
MONTHLY |
PAID |
TOTAL |
|||||||||||||||||
PAYMENTS |
DURING |
UNPAID |
|||||||||||||||||
NAME OF CREDITOR |
DUE |
MONTH |
POSTPETITION |
||||||||||||||||
1. |
Silicon Valley Bank |
$ | 59,847 | $ | 59,847 | $ | - | ||||||||||||
2. |
Oxford Finance |
$ | 59,847 | $ | 59,847 | $ | - | ||||||||||||
3. |
Integer / Greatbatch (Plano office lease - rent only) |
$ | 44,082 | $ | 44,082 | $ | - | ||||||||||||
4. |
EOS Development LLC / 105 EDGEVIEW OWNER LP |
$ | 40,476 | $ | 40,476 | $ | - | ||||||||||||
5. | N/A | $ | - | $ | - | $ | - | ||||||||||||
6. |
TOTAL |
$ | 204,252 | $ | 204,252 | $ | - |
Monthly Operating Report
ACCRUAL BASIS-7
CASE NAME: |
Nuvectra Corporation |
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CASE NUMBER: |
19-43090 |
MONTH: |
January 31 |
2020 |
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QUESTIONNAIRE |
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|
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YES |
NO |
1. |
HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD? |
|
X |
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2. |
HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT? |
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X |
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3. |
ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES? |
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X |
|||
4. |
HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD? |
X |
|
|||
5. |
HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY? |
|
X |
|||
6. |
ARE ANY POSTPETITION PAYROLL TAXES PAST DUE? |
|
|
X |
||
7. |
ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE? |
|
X |
|||
8. |
ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE? |
|
X |
|||
9. |
ARE ANY OTHER POSTPETITION TAXES PAST DUE? |
|
|
X |
||
10. |
ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT? |
|
X |
|||
11. |
HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD? |
X |
|
|||
12. |
ARE ANY WAGE PAYMENTS PAST DUE? |
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|
|
X |
|
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY. |
||||||
4. - The following payments on pre-pretition liabilities have been made this reporting period (from Jan. 1-31): see #11 for other taxes paid; Ch #7361 $29.26 to Cigna Life Ins for NY State Paid Family Leave Coverage Q4 quarterly premium, Ch #7360 $9.60 to Cigna Life Ins for NY State Disibility Coverage Q4 quarterly premium, Ch #7378 &7392 to Greatbatch and Ch #7395 to Minnetronix (total $347,081.64) for Aleva funds |
||||||
11. - The following pre-pretition taxes have been paid from Jan. 1-31: Q4-2019 and Annual 2019 sales & use tax for certain states. |
||||||
INSURANCE |
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|||||
|
|
|
|
|
YES |
NO |
1. |
ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT? |
X |
|
|||
2. |
ARE ALL PREMIUM PAYMENTS PAID CURRENT? |
|
X |
|
||
3. |
PLEASE ITEMIZE POLICIES BELOW. |
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|
|
|
|
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY. |
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INSTALLMENT PAYMENTS |
||||||
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TYPE OF |
|
PAYMENT AMOUNT |
|||
|
POLICY |
CARRIER |
PERIOD COVERED |
& FREQUENCY |
||
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
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