MiddleBrook Pharmaceuticals, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - August 18, 2010

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8-K - FORM 8-K - MiddleBrook Pharmaceuticals, Inc.c05207e8vk.htm
Exhibit 99.1
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
         
In re
  MiddleBrook Pharmaceuticals, Inc.   Case No. 10-11485
 
  Debtor   Reporting Period: July 1 — July 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
                
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
  8/18/2010    
 
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: July 1 — July 31, 2010
CERTIFICATIONS
A. Bank Reconciliation Certification
The undersigned verifies that, to my knowledge, all of the Debtors’ July 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
  8/18/2010    
 
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: July 1 — 31, 2010
MOR 1
                                 
    Current Month     Cumulative Filing to Date  
    Actual     Forecast     Actual     Forecast  
 
                                
Beginning Date
   1-Jul-10   1-Jul-10   3-May-10   3-May-10
Ending Date
   31-Jul-10   31-Jul-10   31-Jul-10   31-Jul-10
 
                                
Cash — Beginning Balance
   $ 4,336,192     $ 4,368,359     $ 5,257,718     $ 5,269,539  
 
                                
Receipts
                                
Lockbox
   $ 55,024     $ 46,500     $ 316,417     $ 274,859  
Misc Deposit
   $ 15,259,620     $ 16,954,000     $ 15,323,188     $ 16,954,000  
 
                        
Total Receipts
   $ 15,314,644     $ 17,000,500     $ 15,639,605     $ 17,228,859  
 
                                
Operating Disbursements
                                
Broadpoint
   $ 0     $ 0     $ 0     $ 0  
Cardinal Co-Pay Redemptions
   $ 0     $ 0     $ 0     $ 0  
Dr Directory
   $ (47,005 )   $ (47,005 )   $ (47,005 )   $ (96,831 )
Legal & Deal fees
   $ (474,445 )   $ (582,225 )   $ (474,445 )   $ (582,225 )
Payroll
   $ (173,849 )   $ (227,299 )   $ (650,150 )   $ (847,966 )
Severance
           $ 0     $ 0     $ 0  
Vacation Payout
   $ 0     $ 0     $ 0     $ 0  
Invoices in A/P Aging
   $ (373,352 )   $ (206,470 )   $ (1,071,077 )   $ (968,372 )
Misc (TX rent, Insurance, ICS)
   $ (33,373 )   $ (36,900 )   $ (100,119 )   $ (100,400 )
Other
   $ (997,798 )   $ (1,014,458 )   $ (1,003,514 )   $ (1,164,458 )
voided checks
   $ 1,560     $ 0     $ 1,560          
 
                        
Total Operating Disbursements
   $ (2,098,262 )   $ (2,114,356 )   $ (3,344,748 )   $ (3,760,252 )
 
                        
 
                                
Net Operating Cash Flow
   $ 13,216,383     $ 14,886,144     $ 12,294,857     $ 13,468,607  
 
                        
 
                                
Non-Operating Disbursements
                                
Capex
                                
Professional Fees
                                
 
                        
Total Non-Operating Disbursements
   $ 0     $ 0     $ 0     $ 0  
 
                        
 
                                
Net Operating Cash Flow Before Financing
   $ 13,216,383     $ 14,886,144     $ 12,294,857     $ 13,468,607  
 
                        
 
                                
Financing Activities
                                
Interest Payments
                                
 
                        
Financing Activities
   $ 0     $ 0     $ 0     $ 0  
 
                                
Cash Flow
   $ 13,216,383     $ 14,886,144     $ 12,294,857     $ 13,468,607  
 
                        
 
                                
Ending Cash Balance (per books)
   $ 17,552,575     $ 19,254,503     $ 17,552,575     $ 18,738,147  
 
                        
         
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)      
TOTAL DISBURSEMENTS
   $ (2,098,262 )
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
   $ (2,098,262 )

 

 

 

         
In re:
  MiddleBrook Pharmaceuticals, Inc.   Case No. 10-11485
 
  Debtor   Reporting Period: July 1 — 31, 2010
Disbursements Journal
Checks cut during period
                         
GL Posting       Checkbook     CM Trx        
Date   Source Document   Amount     Number   Voided   Paid ToRcvd From
7/1/2010
   PMCHK   $ 2,894.02     5020   No   ADP
7/1/2010
   PMCHK   $ 1,342.40     5021   No   Bowne of New York City
7/1/2010
   PMCHK   $ 53.25     5022   No   Corporation Service Company
7/1/2010
   PMCHK   $ 2,500.00     5023   No   D.C. Treasurer Med Asst Admin
7/1/2010
   PMCHK   $ 37.23     5024   No   Department of Health Services
7/1/2010
   PMCHK   $ 58,454.19     5025   No   DoctorDirectory.Com, Inc.
7/1/2010
   PMCHK   $ 34.98     5026   No   Franchise Tax Board - CA
7/1/2010
   PMCHK   $ 494.46     5027   No   IKON Financial Services Box 650016
7/1/2010
   PMCHK   $ 156.12     5028   No   Iron Mountain
7/1/2010
   PMCHK   $ 2,310.20     5029   No   Kurtzman Carson Consultants
7/1/2010
   PMCHK   $ 72.45     5030   No   Mississippi State Tax Commission
7/1/2010
   PMCHK   $ 885.00     5031   No   Picture This Communicaitons, Inc.
7/1/2010
   PMCHK   $ 45.36     5032   No   Prostar Services, Inc
7/1/2010
   PMCHK   $ 4,242.00     5033   No   Pure Compliance
7/1/2010
   PMCHK   $ 881.49     5034   No   State of New Jersey Div
7/1/2010
   PMCHK   $ 250.00     5035   No   Transport Solutions Inc
7/1/2010
   PMCHK   $ 903.85     5036   No   Verizon
7/1/2010
   PMCHK   $ 162.02     5037   No   WorldWide express
7/1/2010
   PMCHK   $ 765.39     5038   No   West Virginia State Tax Dept
7/1/2010
   PMCHK   $ 200.00     5039   No   PayFlex Systems USA, Inc.
7/2/2010
   PMCHK   $ 3,314.92     5040   No   ExecuSuites I-270, Inc.
7/2/2010
   PMCHK   $ 77,267.41     5041   No   United Healthcare Insurance Co.
7/2/2010
   PMCHK   $ 1,931.42     5042   No   UNUM Life Insurance
7/2/2010
   PMCHK   $ 2,641.28     5043   No   VSP - (AT)
7/2/2010
   PMCHK   $ 7,443.00     5044   No   Carella, Byrne, Bain
7/2/2010
   PMCHK   $ 113.66     5045   No   Cosecurity, Inc.
7/7/2010
   PMCHK   $ 63.00     5046   No   Excel Micro
7/21/2010
   PMCHK   $ 79.60     5047   No   ADP Commercial Leasing
7/21/2010
   PMCHK   $ 1,000.00     5048   No   American Stock Transfer & Trust Co
7/21/2010
   PMCHK   $ 16.98     5049   No   AT Conference
7/21/2010
   PMCHK   $ 832.89     5050   No   AT&T Mobility
7/21/2010
   PMCHK   $ 2,765.31     5051   No   A T & T 8174909174/8174908790
7/21/2010
   PMCHK   $ 991.17     5052   No   Avaya, inc.
7/21/2010
   PMCHK   $ 101.19     5053   No   Robin N. Belsaas
7/21/2010
   PMCHK   $ 42.56     5054   No   Broadridge
7/21/2010
   PMCHK   $ 1,340.00     5056   No   Corporation Service Company
7/21/2010
   PMCHK   $ 3.73     5057   No   Delaware Department of Labor
7/21/2010
   PMCHK   $ 120.00     5058   No   Excel Micro
7/21/2010
   PMCHK   $ 180.00     5059   No   Fisher Clinical Services
7/21/2010
   PMCHK   $ 200.00     5060   No   FlexAmerica, Inc.
7/21/2010
   PMCHK   $ 97.90     5061   No   Gary Herman
7/21/2010
   PMCHK   $ 24,962.99     5062   No   Integrated Commercialization Sol.
7/21/2010
   PMCHK   $ 656.25     5063   No   Lynne B. Marton
7/21/2010
   PMCHK   $ 15.23     5064   No   Nevada Department of Taxation
7/21/2010
   PMCHK   $ 612.50     5065   No   RX Sample Solution
7/21/2010
   PMCHK   $ 100.00     5066   No   Shred-it USA, DBA Shred-it Dallas
7/21/2010
   PMCHK   $ 261.29     5067   No   State of N Jersey ADDP DRUG REBATE
7/21/2010
   PMCHK   $ 168.99     5068   No   State of Nevada
7/21/2010
   PMCHK   $ 811.80     5069   No   Verizon Wireless
7/21/2010
   PMCHK   $ 45.93     5070   No   Verizon Business
7/21/2010
   PMCHK   $ 150.00     5071   No   WebEx Communications Inc.
7/21/2010
   PMCHK   $ 91.91     5072   No   WorldWide express
7/21/2010
   PMCHK   $ 6,166.67     5073   No   Lord James Blyth
7/21/2010
   PMCHK   $ 9,500.00     5074   No   R.Gordon Douglas, M.D.
7/21/2010
   PMCHK   $ 9,000.00     5075   No   Richard W.Dugan

 

 

 

                         
GL Posting       Checkbook     CM Trx        
Date   Source Document   Amount     Number   Voided   Paid ToRcvd From
7/21/2010
   PMCHK   $ 12,666.66     5076   No   Equity Group Investments, LLC
7/21/2010
   PMCHK   $ 62.42     5077   No   AT&T
7/21/2010
   PMCHK   $ 550.71     5078   No   David Becker
7/21/2010
   PMCHK   $ 4,809.14     5079   No   Brad Cole
7/21/2010
   PMCHK   $ 57,461.33     5080   No   Kurtzman Carson Consultants
7/21/2010
   PMCHK   $ 99,052.64     5081   No   QPharma Corp
7/21/2010
   PMCHK   $ 204,155.20     5082   No   Alston & Bird LLP
7/21/2010
   PMCHK   $ 33,511.20     5083   No   Young Conaway Stargatt & Taylor LLP
7/21/2010
   PMCHK   $ 12,246.48     5084   No   PPD Medical Communications
7/22/2010
   PMCHK   $ 5,825.95     5085   No   Alston & Bird LLP
7/22/2010
   PMCHK   $ 28,742.44     5086   No   Baynard, P.A.
7/22/2010
   PMCHK   $ 111,402.00     5087   No   Dickstein Shapiro LLP
7/22/2010
   PMCHK   $ 1,099.45     5088   No   Young Conaway Stargatt & Taylor LLP
7/27/2010
   PMCHK   $ 2,995.85     5089   No   ADP
7/27/2010
   PMCHK   $ 1.62     5091   No   Colorado State Treasurer
7/27/2010
   PMCHK   $ 1,054.00     5092   No   Corporation Service Company
7/27/2010
   PMCHK   $ 47,004.76     5093   No   DoctorDirectory.Com, Inc.
7/27/2010
   PMCHK   $ 1,000.00     5094   No   Christine Higgins
7/27/2010
   PMCHK   $ 156.12     5095   No   Iron Mountain
7/27/2010
   PMCHK   $ 28,567.63     5096   No   Kurtzman Carson Consultants
7/27/2010
   PMCHK   $ 122.37     5097   No   Prostar Services, Inc
7/27/2010
   PMCHK   $ 135.59     5098   No   Marcus Schestopol
7/27/2010
   PMCHK   $ 118.08     5099   No   UNUM Life Insurance
7/27/2010
   PMCHK   $ 6,500.00     5100   No   U S TRUSTEE
7/27/2010
   PMCHK   $ 188.87     5101   No   WorldWide express
7/27/2010
   PMCHK   $ 1,551.28     5102   No   Brad Cole
7/27/2010
   PMCHK   $ 366.12     5103   No   Gary Herman
 
                      
 
       $ 891,121.90     Checks Cut        
 
                      
Debits to bank other than checks
                         
Transaction                   Customer    
Date   Description   Amount     Bank Ref#   Ref. #   Payee / Description
7/2/2010
   ACH DEBIT     298.99             payroll fees
7/9/2010
   wire transfer     3,680.00             Kurtzman Carson Consultants
7/13/2010
   WIRE TRANSFER DEBIT     67,793.07             payroll-related
7/14/2010
   WIRE TRANSFER DEBIT     2,458.73             payroll-related
7/16/2010
   ACH DEBIT     308.51             payroll-related
7/16/2010
   ACH Withdrawal     265.53             The Utility Company
7/20/2010
   ACH Credit     4,079.26             401K contributions
7/23/2010
   Debit Memo     666.65             ADP fees
7/23/2010
   Debit Memo     122.59             ADP fees
7/26/2010
   Service Charge     221.22             Cap One charges
7/26/2010
   Service Charge     756.04             ANALYSIS SERVICE CHARGE
7/28/2010
   ACH     68,861.77             ADP TAX SVCS INC. REV. WIR
7/29/2010
   Wire Transfer     411,217.88             MCKESSON DRUG
7/29/2010
   Wire Transfer     180,000.00             CARDINAL HEALTH
7/29/2010
   ACH     30,656.25             ADP INC FUNDS MG MT
7/30/2010
   Wire Transfer     27,146.93             Integrated Commercialization Sol.
7/30/2010
   Wire Transfer     33,372.85             Maguire Partners
7/30/2010
   Wire Transfer     1,577.95             Lynne B. Marton
7/30/2010
   Wire Transfer     45,041.47             PPD Medical Communications
7/30/2010
   Wire Transfer     3,441.10             RX Sample Solution
7/30/2010
   Wire Transfer     326,733.27             Stada Production Ireland Ltd.
 
                      
        $ 1,208,700.06     Debits to Bank other than Checks
 
                      
 
                        
Voided Checks from Prior Periods
   $ 1,560.43              
 
                      
 
                        
        $ 2,098,261.53     total disbursements
 
                    

 

 

 

Checks cleared by bank:
                         
GL Posting       Checkbook     CM Trx        
Date   Source Document   Amount     Number   Voided   Paid ToRcvd From
7/1/2010
   DEBIT MEMO     1,071.39             CONTROL DISBURSEMENT/CLEARED CHECKS
7/2/2010
   DEBIT MEMO     808.18             CONTROL DISBURSEMENT/CLEARED CHECKS
7/6/2010
   DEBIT MEMO - SVB     231.02             CONTROL DISBURSEMENT/CLEARED CHECKS
7/6/2010
   DEBIT MEMO - Cap One     2,194.23             CONTROL DISBURSEMENT/CLEARED CHECKS
7/7/2010
   DEBIT MEMO - Cap One     145,960.76             CONTROL DISBURSEMENT/CLEARED CHECKS
7/8/2010
   DEBIT MEMO - Cap One     6,468.24             CONTROL DISBURSEMENT/CLEARED CHECKS
7/9/2010
   DEBIT MEMO - SVB     154.81             CONTROL DISBURSEMENT/CLEARED CHECKS
7/9/2010
   DEBIT MEMO - Cap One     5,478.92             CONTROL DISBURSEMENT/CLEARED CHECKS
7/12/2010
   DEBIT MEMO - Cap One     5,231.36             CONTROL DISBURSEMENT/CLEARED CHECKS
7/13/2010
   DEBIT MEMO - Cap One     1,072.51             CONTROL DISBURSEMENT/CLEARED CHECKS
7/15/2010
   DEBIT MEMO - Cap One     34.98             CONTROL DISBURSEMENT/CLEARED CHECKS
7/23/2010
   DEBIT MEMO - Cap One     12,246.48             CONTROL DISBURSEMENT/CLEARED CHECKS
7/26/2010
   DEBIT MEMO - CapOne     550.71             CONTROL DISBURSEMENT/CLEARED CHECKS
7/27/2010
   DEBIT MEMO - CapOne     110,176.94             CONTROL DISBURSEMENT/CLEARED CHECKS
7/28/2010
   DEBIT MEMO - CapOne     239,881.05             CONTROL DISBURSEMENT/CLEARED CHECKS
7/29/2010
   DEBIT MEMO - CapOne     120,302.69             CONTROL DISBURSEMENT/CLEARED CHECKS
7/30/2010
   DEBIT MEMO - SVB     29.39             CONTROL DISBURSEMENT/CLEARED CHECKS
7/30/2010
   DEBIT MEMO - CapOne     23,400.43             CONTROL DISBURSEMENT/CLEARED CHECKS
 
                      
 
       $ 675,294.09              
 
                      

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
         Debtor
  Reporting Period: July 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                                                  
 
                                                                                            
Alston & Bird LLP subtotal
                                                                                   $ 204,155.20     $ 5,825.95  
 
                                                                                            
 
                                                                                                
Baynard, 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  
Baynard, P.A.
     6/1-6/30/10     $ 29,506.00     $ 393.24     $ 28,306.00     $ 393.24       8/10/2010                                                  
 
                                                                                            
Baynard, P.A. subtotal
                                                                                   $ 28,530.40     $ 212.04  
 
                                                                                            
 
                                                                                                
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                                                  
 
                                                                                            
Dickstein Shapiro LLP subtotal
                                                                                   $ 107,254.80     $ 4,147.20  
 
                                                                                            
 
                                                                                                
Invotex, Inc.
     5/26-6/30/10     $ 71,248.50     $ 374.04                       8/12/2010                                                  
 
                                                                                            
Invotex, Inc. subtotal
                                                                                   $ 0.00     $ 0.00  
 
                                                                                            
 
                                                                                                
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 subtotal
                                                                                   $ 72,468.00     $ 19,551.16  
 
                                                                                            
 
                                                                                                
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                                                  
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
                                                                                   $ 33,511.20     $ 1,099.45  
 
                                                                                            
 
                                                                                                
Total
                                                                                   $ 446,419.60     $ 38,344.80  
 
                                                                                            

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
          Debtor
  Reporting Period: July 1 — 31, 2010
                 
    July     Cumulative  
    2010     Filing to Date  
Gross Sales
     73,059       438,100  
Sales Reserves and Allowances
     (4,310 )     514,742  
 
            
 
                
Net Revenue
     68,750       952,842  
 
                
Cost of Goods Sold
     (134,103 )     860,166  
 
Salaries, Bonus & Temp Labor
     2,477,167       2,942,813  
Benefits, Payroll Taxes, Recruiting & Relocation
     (59,466 )     35,960  
 
            
Subtotal: Salaries & Benefits
     2,417,701       2,978,773  
 
                
Stock-Based Compensation
     —       408,171  
Marketing & Advertising
     4,614       6,510  
Travel & Entertainment
     10,079       46,186  
Facilities and Equipment Related
     61,339       169,983  
Insurance
     85,053       245,768  
Distribution Expense
     68,104       291,617  
Office & General Lab Supplies
     705       4,940  
Consulting & Legal Fees
     86,197       1,727,397  
Patents & Licensing
     32,669       250,611  
Audit, IR & Financial Fees
     (102,919 )     (71,671 )
Non-Income Taxes
     184       1,489  
Depreciation and Amortization
     381,430       974,542  
Director and SAB Fees
     23,917       61,393  
 
            
 
                
Subtotal: FTE Expenses
     3,069,071       7,095,709  
 
            
 
                
Marketing Costs
     35,185       169,733  
Direct Project Costs
     (64,459 )     53,114  
 
            
 
                
Total Expenses
     2,905,695       8,178,722  
 
            
 
                
Income (Loss) from Operations
     (2,836,945 )     (7,225,879 )
 
Interest Income
     158       357  
Other income (expense)
     —       2,905  
 
            
 
                
Net Income (Loss) Before Taxes
     (2,836,788 )     (7,222,617 )
 
            
 
                
Net Income (Loss)
     (2,836,788 )     (7,222,617 )
 
            
 
                

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
         Debtor
  Reporting Period: July 1 — 31, 2010
                 
    Current     Petition  
    Month     Date  
Cash & Cash Equivalents
     17,552,575       5,257,718  
Accounts Receivable, net
     512,635       (490,487 )
Inventory
     (0 )     2,213,158  
Prepaid and Other Current Assets
     2,815,294       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
     21,406,219       22,173,234  
 
                
20000 - Accounts Payable — post-petition
     (518,002 )     —  
21201 - Accrued Payable to Lilly
     —       —  
21210 - Accrued Professional Fees
     (703,819 )     —  
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
     (7,760 )     —  
23200 - Wages Payable
     (57,049 )     —  
23620 - Employee Benefits Pay-401k
     (3,725 )     —  
23650 - Employee Benefits — Flex Spending
     (1,219 )     —  
 
            
Accounts Payable and Accrued Expenses — Post-Petition
     (1,291,574 )     —  
20000 - Accounts Payable — pre-petion
     (837,678 )     (1,214,588 )
 
                
21110 - Accrued Severance
     (2,499,469 )     (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
     (49,889 )     (563,001 )
21282 - Accrued Returns
     —       (1,945,797 )
21290 - Other Accrued Expenses
     —       (292,773 )
23200 - Wages Payable
     (306,521 )     (306,521 )
23620 - Employee Benefits Pay-401k
     —       (33,339 )
23650 - Employee Benefits — Flex Spending
     —       (3,899 )
25000 - Other Current Liabilities
     (4,853,543 )     (4,810,772 )
 
            
Accounts Payable and Accrued Expenses — Pre-Petition
     (8,577,017 )     (13,507,496 )
 
                
Deferred Contract Revenue — non-current (pre-petition)
     (11,625,000 )     (11,625,000 )
Deferred Lease Expense
     (20,211 )     (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
     24,105,954       16,883,336  
 
            
Accumulated Deficit
     323,346,697       316,124,080  
 
            
 
                
Stockholders’ Equity
     107,584       2,977,602  
 
                
Liabilities & Stockholders’ Equity
     (21,406,219 )     (22,173,234 )

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
          Debtor
  Reporting Period: July 1 — 31, 2010
         
Other Post-petition liabilities        
Professional bankruptcy fees — creditors’ committee cousel & FA
        
Professional bankruptcy fees — equity committee counsel
     450,000  
Professional bankruptcy fees — corporate and local counsel
     128,902  
Professional bankruptcy fees — KCC estimate
     45,000  
Professional legal fees (July)
     56,000  
DoctorDirectory (July estimate)
     31,100  
Other miscellaneous May — July accruals — no invoices yet
     577  
 
      
 
  
 
   $ 711,579  
 
      

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
          Debtor
  Reporting Period: July 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
     74,379.44       154.03       —       —       —       74,533.47  
Wages Payable (401k contributions)
     —       —       —       —       —       —  
Taxes Payable (payroll-related taxes)
     —       —       —       —       —       —  
Rent/Leases-Building
     —       —       —       —       —       —  
Rent/Leases-Equipment
     —       —       —       —       —       —  
Secured Debt/Adequate Protection Payments
     —       —       —       —       —       —  
Professional Fees
     102,055.77       338,299.06       —       —       —       440,354.83  
Amounts Due to Insiders*
     2,913.83       —       —       —       —       2,913.83  
Other: __________________________
     —       —       —       —       —       —  
Other: __________________________
     —       —       —       —       —       —  
 
                                    
Total Postpetition Debts
     179,349.04       338,453.09       —       —       —       517,802.13  
 
                                    
Explain how and when the Debtor intends to pay any past-due postpetition debts.
Amounts in 0-30 days are awaiting court approval or were paid in early August.
     
*   “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: July 1 — 31, 2010
SUMMARY OF UNPAID POSTPETITION DEBTS
                                             
Vendor       Voucher   Document     Current Trx     Document   Document            
ID   Vendor Name   Number   Date     Amount     Number   Type   Paid Date        
ALS002
   Alston & Bird LLP   038421     6/30/2010     $ 25,924.30     06302010 20%   Invoice            
ALS002
   Alston & Bird LLP         6/30/2010     $ 103,697.20     JUNE 2010 80%   Invoice   8/12/2010        
ALS002
   Alston & Bird LLP         6/30/2010     $ 7,762.21     June Expenses   Invoice   8/12/2010        
ALS002
   Alston & Bird LLP   038358     7/14/2010     $ 51,038.80     MAY 2010 20%   Invoice            
ATC003
   AT Conference         7/31/2010     $ 76.27     1869680710   Invoice   8/12/2010        
ATT013
   A T & T 8174909174/8174908790         7/27/2010     $ 187.87     8174908790 0710   Invoice   8/12/2010        
ATT013
   A T & T 8174909174/8174908790         7/27/2010     $ 651.90     8174909174 0710   Invoice   8/12/2010        
ATT12
   ATT         7/19/2010     $ 718.77     8310001262167 0710   Invoice   8/12/2010        
AVA002
   Avaya, inc.         8/1/2010     $ 991.17     2730265510   Invoice   8/12/2010        
BAY002
   Baynard, P.A.   038460     6/30/2010     $ 23,604.80     JUNE 2010 80%   Invoice   8/17/2010   balance lowered in August
BAY002
   Baynard, P.A.   038462     6/30/2010     $ 393.24     JUNE 2010 EXPS   Invoice   8/17/2010        
BAY002
   Baynard, P.A.   038461     6/30/2010     $ 5,901.20     JUNE 2010 20%   Invoice            
BAY002
   Baynard, P.A.   038348     7/14/2010     $ 7,132.60     MAY 2010 20%   Invoice            
BEL002
   Robin N. Belsaas         7/30/2010     $ 39.89     07302010   Invoice   8/12/2010        
CAR002
   Carella, Byrne, Bain   038370     7/20/2010     $ 2,578.00     10211039   Invoice            
COL005
   Brad Cole         7/19/2010     $ 2,580.51     E08062010   Invoice   8/12/2010        
CSC003
   Corporation Service Company         7/21/2010     $ 200.00     53147384   Invoice   8/12/2010        
CSC003
   Corporation Service Company         7/26/2010     $ 265.00     53156457   Invoice   8/12/2010        
DEP015
   Department of Veterans Affairs         7/30/2010     $ 193.27     Q3 2010   Invoice   8/12/2010        
DIC002
   Dickstein Shapiro LLP   038457     6/30/2010     $ 50,837.50     JUNE 2010 80%   Invoice   8/17/2010        
DIC002
   Dickstein Shapiro LLP   038459     6/30/2010     $ 3,309.16     JUNE 2010 EXPS   Invoice   8/17/2010        
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            
EXC003
   Excel Micro         6/8/2010     $ 63.00     0094777   Invoice   8/12/2010        
FDA004
   FDA Export Certificate Program         7/23/2010     $ 1,050.00     9000719684   Invoice   8/12/2010        
GRA005
   Gray Robinson   038274     6/9/2010     $ 252.00     10088120   Invoice            
GRA005
   Gray Robinson   038273     6/9/2010     $ 356.40     10088119   Invoice            
GRA005
   Gray Robinson   038276     6/9/2010     $ 558.11     10088127   Invoice            
GRA005
   Gray Robinson   038275     6/9/2010     $ 646.65     10088126   Invoice            
GRA005
   Gray Robinson   038272     6/9/2010     $ 3,591.00     10088115   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   038392     7/9/2010     $ 252.00     10094697   Invoice            
GRA005
   Gray Robinson   038393     7/9/2010     $ 378.00     10094699   Invoice            
GRA005
   Gray Robinson   038388     7/9/2010     $ 1,433.00     10094691   Invoice            
GRA005
   Gray Robinson   038463     7/31/2010     $ 23.82     10097780   Invoice            
GRA005
   Gray Robinson   038465     7/31/2010     $ 252.00     10097784   Invoice            
GRA005
   Gray Robinson   038464     7/31/2010     $ 567.00     10097781   Invoice            
GRA005
   Gray Robinson   038466     7/31/2010     $ 2,779.00     10097778   Invoice            
HDS001
   H D SMITH   038468     7/2/2010     $ 697.83     Q210034   Invoice            
HEA012
   Healthcare & Family Services   037619     3/9/2010       ($145.27 )   1104220094   Credit Memo            
ICS001
   Integrated Commercialization Sol.   038490     7/31/2010     $ 25,535.52     15110013393   Invoice   8/17/2010        
INV003
   Invotex, Inc.   038454     6/30/2010     $ 56,998.80     JUNE 2010 80%   Invoice            
INV003
   Invotex, Inc.   038456     6/30/2010     $ 374.04     JUNE 2010 EXPS   Invoice            
INV003
   Invotex, Inc.   038455     6/30/2010     $ 14,249.70     JUNE 2010 20%   Invoice            
MAR018
   Lynne B. Marton         8/1/2010     $ 1,093.75     MB080110   Invoice   8/12/2010        
POR001
   Porzio Bromberg & Newman P.C.   038319     6/23/2010     $ 1,463.50     3084689   Invoice            
QPH001
   QPharma Corp         7/31/2010     $ 42,568.28     21033   Invoice   8/12/2010        
STA026
   New Jersey Wraparound Drug Rebate         7/31/2010     $ 111.12     1104220101   Invoice   8/12/2010        
TRE001
   Dr. Donald J. Treacy         7/30/2010     $ 293.43     E07302010   Invoice   8/12/2010        
VER010
   Verizon Business         7/23/2010     $ 33.96     91501881441007   Invoice   8/12/2010        
WEB001
   WebEx Communications Inc.         7/23/2010     $ 150.00     3596235   Invoice   8/12/2010        
WOR005
   WorldWide express   038415     6/30/2010     $ 91.03     0105024 POST   Invoice   8/17/2010        
YOU005
   Young Conaway Stargatt & Taylor LLP   038452     6/30/2010     $ 5,006.70     JUNE 2010 20%   Invoice            
YOU005
   Young Conaway Stargatt & Taylor LLP         6/30/2010     $ 20,026.80     June 2010 80%   Invoice   8/12/2010        
YOU005
   Young Conaway Stargatt & Taylor LLP         6/30/2010     $ 636.75     JUNE 2010 EXPS   Invoice   8/12/2010        
YOU005
   Young Conaway Stargatt & Taylor LLP   038354     7/14/2010     $ 8,377.80     MAY 2010 20%   Invoice            
 
                                          
 
                   $ 517,802.13                      
 
                                          

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
          Debtor
  Reporting Period: July 1 — 31, 2010
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
                         
Accounts Receivable Reconciliation   Amount          
Total Accounts Receivable at the beginning of the reporting period
             520,765.90          
+ Amounts billed during the period
             73,059.48  
- Amounts collected during the period
             (55,024.24 )        
- Other adjustments during period
             (7,416.27 )
Total Accounts Receivable at the end of the reporting period
             531,384.87          
 
                
                         
Accounts Receivable Aging   Amount          
0 - 30 days old
             83,276.88          
31 - 60 days old
             67,721.15          
61 - 90 days old
             112,404.73          
91+ days old
             267,807.76          
Total Accounts Receivable
             531,210.52          
Amount considered uncollectible (Bad Debt)
             —          
Accounts Receivable (Net)
             531,210.52       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  
FORM MOR-5
(04/07)