MiddleBrook Pharmaceuticals, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - January 19, 2011

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8-K - FORM 8-K - MiddleBrook Pharmaceuticals, Inc.c11164e8vk.htm
Exhibit 99.1
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
     
In re MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
     Debtor
  Reporting Period: December 1 — December 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
   Taxes   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/ Ron Glass
 
Signature of Authorized Individual*
  January 18, 2010
 
Date 		   
 
        
Ron Glass
 
Printed Name of Authorized Individual
  Plan Administrator
 
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.
The Debtor’s Modified Plan of Liquidation (the “Plan”) was confirmed on December 30, 2010. The Plan became effective on January 3, 2011.
MOR
(04/07)

 

 

 

UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
     
In re MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
     Debtor
  Reporting Period: December 1 — December 31, 2010
CERTIFICATIONS
A. Bank Reconciliation Certification
The undersigned verifies that, to my knowledge, all of the Debtors’ December 31, 2010 bank balances have been reconciled in an accurate and timely manner.
                 
Bank Name   Account     Book Balance  
Capital One Bank
     ****8899     $ 2,728,326.07  
Capital One Bank
     ****8910     $ 10,000.00  
Capital One Bank
     ****9471     $ 13,525,679.32  
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/ Ronald L. Glass
 
Signature of Authorized Individual
  January 18, 2010
 
Date 		   
 
        
Ronald L. Glass
 
   Plan Administrator
 
    
Printed Name of Authorized Individual
  Title of Authorized Individual    

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
     Debtor
  Reporting Period: December 1 — December 31, 2010
MOR 1
                                 
    Current Month     Cumulative Filing to Date  
    Actual     Forecast     Actual     Forecast  
Beginning Date
   1-Dec-10   1-Dec-10   3-May-10   3-May-10
Ending Date
   31-Dec-10   31-Dec-10   31-Dec-10   31-Dec-10
 
                                
Cash — Beginning Balance
   $ 16,497,862     $ 16,497,573     $ 5,257,718     $ 5,269,539  
 
                                
Receipts
                                
Lockbox
     —       —       645,880       299,859  
Misc Deposits
     34,127       11,822       17,709,213       18,700,226  
 
                        
Total Receipts
   $ 34,127     $ 11,822     $ 18,355,093     $ 19,000,085  
 
                                
Operating Disbursements
                                
Gleacher
     —       —       (712,514 )     —  
Dr Directory
     —       —       (77,948 )     (127,774 )
Legal & Deal fees
     (103,218 )     (424,218 )     (1,190,420 )     (1,305,576 )
Par Litigation (additional expense)
     (6,673 )     (50,000 )     (6,673 )     (50,000 )
KCC LLC
     —       (45,000 )     (65,501 )     (175,513 )
Plan Administrator
     —       (25,000 )     —       (25,000 )
Creditors Committee Counsel & FA
     (57,157 )     (62,603 )     (330,695 )     (607,669 )
Equity Committee Counsel
     —       (150,000 )     (94,294 )     (394,294 )
Other Professional Fees
     —       —       —       (347,480 )
Payroll
     (20,834 )     (41,000 )     (1,198,175 )     (1,491,830 )
Benefits
     (871 )     —       (263,923 )     (206,567 )
Severance
     —       —       —       —  
Invoices in A/P Aging
     (43,406 )     (38,860 )     (1,261,965 )     (1,198,257 )
Misc (TX rent, Insurance, ICS)
     (5,958 )     (10,370 )     (1,031,792 )     (360,846 )
Other
     (29,866 )     (46,800 )     (1,119,655 )     (1,287,258 )
voided checks
     —       —       4,749       —  
 
                        
Total Operating Disbursements
   $ (267,983 )   $ (893,851 )   $ (7,348,805 )   $ (7,578,064 )
 
                        
 
                                
Net Operating Cash Flow
   $ (233,856 )   $ (882,029 )   $ 11,006,287     $ 11,422,021  
 
                        
 
  
Non-Operating Disbursements
                                
Capex
                                
Professional Fees
                                
 
                        
Total Non-Operating Disbursements
   $ —     $ —     $ —     $ —  
 
                        
 
  
Net Operating Cash Flow Before Financing
   $ (233,856 )   $ (882,029 )   $ 11,006,287     $ 11,422,021  
 
                        
 
  
Financing Activities
                                
Interest Payments
                                
 
                        
Financing Activities
   $ —     $ —     $ —     $ —  
 
  
Cash Flow
   $ (233,856 )   $ (882,029 )   $ 11,006,287     $ 11,422,021  
 
                        
 
  
Ending Cash Balance (per books)
   $ 16,264,005     $ 15,615,544     $ 16,264,005     $ 16,691,560  
 
                        
         
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)        
TOTAL DISBURSEMENTS
   $ (267,983 )
 
      
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
   $ (267,983 )
 
      

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
     Debtor
  Reporting Period: December 1 — December 31, 2010
Disbursements Journal
Checks cut during period
                         
GL Posting       Checkbook              
Date   Source Document   Amount     CM Trx Number   Voided   Paid ToRcvd From
12/16/2010
   PMCHK   $ 2,272.83     5334   No   A1 DOCUMENT SOLUTIONS, LLC
12/9/2010
   PMCHK   $ 103,217.87     5333   No   Alston & Bird LLP
12/9/2010
   PMCHK   $ 1,071.00     5324   No   American Stock Transfer & Trust Co
12/16/2010
   PMCHK   $ 154.47     5335   No   AT&T Mobility
12/9/2010
   PMCHK   $ 649.50     5325   No   AZTEC SYSTEMS
12/16/2010
   PMCHK   $ 663.04     5336   No   AZTEC SYSTEMS
12/16/2010
   PMCHK   $ 3,596.89     5340   No   Brad Cole
12/2/2010
   PMCHK   $ 3,901.50     5316   No   Corporation Service Company
12/9/2010
   PMCHK   $ 3,500.00     5329   No   Cynthia Tirpak
12/16/2010
   PMCHK   $ 500.00     5341   No   Cynthia Tirpak
12/2/2010
   PMCHK   $ 115.64     5315   No   David Carlson
12/16/2010
   PMCHK   $ 1,152.44     5337   No   David Carlson
12/2/2010
   PMCHK   $ 38,631.77     5317   No   Dickstein Shapiro LLP
12/16/2010
   PMCHK   $ 18,525.39     5338   No   Dickstein Shapiro LLP
12/2/2010
   PMCHK   $ 1,235.00     5318   No   Herman Technology Consultants-LLC
12/9/2010
   PMCHK   $ 2,689.32     5326   No   Herman Technology Consultants-LLC
12/2/2010
   PMCHK   $ 5,869.96     5319   No   Integrated Commercialization Sol.
12/9/2010
   PMCHK   $ 200.00     5327   No   PayFlex Systems USA, Inc.
12/2/2010
   PMCHK   $ 99.00     5320   No   Precision IR Group
12/2/2010
   PMCHK   $ 451.00     5321   No   Pure Compliance
12/9/2010
   PMCHK   $ 50.00     5328   No   Shred-it USA, DBA Shred-it Dallas
12/2/2010
   PMCHK   $ 29,865.75     5322   No   Tricare Management Activity
12/17/2010
   PMCHK   $ 490.59     5342   No   Verizon Wireless
12/9/2010
   PMCHK   $ 871.30     5330   No   VSP - (AT)
12/2/2010
   PMCHK   $ 3,192.00     5323   No   William Gallagher Associates
12/9/2010
   PMCHK   $ 4,400.00     5331   No   WINSTON & STRAWN LLP
12/9/2010
   PMCHK   $ 125.39     5332   No   WorldWide express
12/16/2010
   PMCHK   $ 354.65     5339   No   WorldWide express
 
                      
 
                        
 
       $ 227,846.30     Checks Cut        
 
                      
Debits to bank other than checks
                         
Transaction                   Customer    
Date   Description   Amount     Bank Ref#   Ref. #   Payee / Description
12/3/2010
   ADP Payroll Fees   $ 278.78     OEX000001241       ADP
12/24/2010
   ADP Payroll Fees   $ 659.79     WDL000001250       ADP
12/13/2010
   Payroll   $ 14,435.78     OEX000001245       ADP
12/28/2010
   Payroll   $ 14,435.77     WDL000001247       ADP
12/29/2010
   Payroll Taxes   $ 5,738.85     WDL000001248       ADP
12/31/2010
   Bank Fees   $ 88.02     OEX000001246       Capital One
12/30/2010
   Rent   $ 4,500.00     WDL000001249       Maguire Partners
 
                      
 
       $ 40,136.99     Debits to Bank other than Checks        
 
                      
 
                        
Voided Checks from Prior Periods
   $ 0.00              
 
                      
 
       $ 267,983.29     Total disbursements        
 
                      
                         
Checks cleared by bank:
 
                
12/2/2010
   DEBIT MEMO - CapOne   $ 427.67             CONTROL DISBURSEMENT/CLEARED CHECKS
12/3/2010
   DEBIT MEMO - CapOne   $ 6,117.11             CONTROL DISBURSEMENT/CLEARED CHECKS
12/6/2010
   DEBIT MEMO - CapOne   $ 50.00             CONTROL DISBURSEMENT/CLEARED CHECKS
12/8/2010
   DEBIT MEMO - CapOne   $ 9,863.51             CONTROL DISBURSEMENT/CLEARED CHECKS
12/9/2010
   DEBIT MEMO - CapOne   $ 44,501.73             CONTROL DISBURSEMENT/CLEARED CHECKS
12/13/2010
   DEBIT MEMO - CapOne   $ 1,114.44             CONTROL DISBURSEMENT/CLEARED CHECKS
12/14/2010
   DEBIT MEMO - CapOne   $ 871.30             CONTROL DISBURSEMENT/CLEARED CHECKS

 

 

                         
GL Posting       Checkbook              
Date   Source Document   Amount     CM Trx Number   Voided   Paid ToRcvd From
12/15/2010
   DEBIT MEMO - CapOne   $ 33,826.07             CONTROL DISBURSEMENT/CLEARED CHECKS
12/16/2010
   DEBIT MEMO - CapOne   $ 7,900.00             CONTROL DISBURSEMENT/CLEARED CHECKS
12/17/2010
   DEBIT MEMO - CapOne   $ 713.04             CONTROL DISBURSEMENT/CLEARED CHECKS
12/20/2010
   DEBIT MEMO - CapOne   $ 103,343.26             CONTROL DISBURSEMENT/CLEARED CHECKS
12/21/2010
   DEBIT MEMO - CapOne   $ 2,272.83             CONTROL DISBURSEMENT/CLEARED CHECKS
12/22/2010
   DEBIT MEMO - CapOne   $ 154.47             CONTROL DISBURSEMENT/CLEARED CHECKS
12/23/2010
   DEBIT MEMO - CapOne   $ 18,880.04             CONTROL DISBURSEMENT/CLEARED CHECKS
12/24/2010
   DEBIT MEMO - CapOne   $ 4,096.89             CONTROL DISBURSEMENT/CLEARED CHECKS
 
                      
 
       $ 234,132.36              
 
                      

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
     Debtor
  Reporting Period: December 1 — December 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
   10/1 - 10/31/10   $ 126,101.00     $ 2,337.07     $ 126,101.00     $ 2,337.07     12/6/2010     5333     12/9/2010   $ 100,880.80     $ 2,337.07     $ 100,880.80     $ 2,337.07  
Alston & Bird LLP
   11/1 - 11/30/10   $ 181,712.18     $ 3,249.18                     1/19/2011                               $ 0.00     $ 0.00  
 
                                                                                
Alston & Bird LLP subtotal
                                                                       $ 746,213.70     $ 20,330.82  
 
                                                                                
 
                                                                                    
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.
   10/1 - 10/31/10   $ 6,568.50     $ 191.38     $ 6,568.50     $ 191.38     12/14/2010     5345     1/6/2011   $ 5,254.80     $ 191.38     $ 5,254.80     $ 191.38  
Bayard, P.A.
   11/1 - 11/30/10   $ 8,553.00     $ 201.93     $ 8,553.00     $ 201.93     1/5/2011     5433     1/13/2011   $ 6,842.40     $ 201.93     $ 6,842.40     $ 201.93  
 
                                                                                
Bayard, P.A. subtotal
                                                                       $ 120,358.20     $ 2,275.81  
 
                                                                                
 
                                                                                    
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
   5/11 - 5/31/10   $ 43,716.00     $ 8,542.26     $ 43,716.00     $ 8,542.26     1/5/2011                               $ 0.00     $ 0.00  
Carella, Byrne, Bain
   6/1 - 6/30/10   $ 56,689.50     $ 5,230.94     $ 56,689.50     $ 5,230.94     1/5/2011                               $ 0.00     $ 0.00  
Carella, Byrne, Bain
   7/1 - 7/31/10   $ 51,815.50     $ 7,430.73     $ 51,815.50     $ 7,430.73     1/5/2011                               $ 0.00     $ 0.00  
 
                                                                                
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     5317     12/2/2010   $ 35,025.60     $ 3,606.17     $ 35,025.60     $ 3,606.17  
Dickstein Shapiro LLP
   10/1 - 10/31/10   $ 23,127.00     $ 23.79     $ 23,127.00     $ 23.79     11/30/2010     5338     12/16/2010   $ 18,501.60     $ 23.79     $ 18,501.60     $ 23.79  
Dickstein Shapiro LLP
   11/1 - 11/30/10   $ 17,037.00     $ 2,504.14     $ 17,037.00     $ 2,504.14     1/5/2011     5435     1/13/2011   $ 13,629.60     $ 2,504.14     $ 13,629.60     $ 2,504.14  
 
                                                                                
Dickstein Shapiro LLP subtotal
                                                                       $ 351,012.05     $ 16,786.98  
 
                                                                                
 
                                                                                    
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
   10/1 - 10/31/10   $ 5,551.50     $ 1,284.34     $ 5,551.50     $ 1,284.34     N/A     5299     11/17/2010   $ 5,551.50     $ 1,284.34     $ 5,551.50     $ 1,284.34  
Kurtzman Carson Consultants
   11/1 - 11/30/10   $ 11,821.00     $ 12,968.56     $ 11,821.00     $ 12,968.56     N/A     5347     1/6/2011   $ 11,821.00     $ 12,968.56     $ 11,821.00     $ 12,968.56  
 
                                                                                
Kurtzman Carson Consultants subtotal
                                                                       $ 135,882.00     $ 46,427.41  
 
                                                                                
 
                                                                                    
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   $ 25,566.00     $ 650.33     $ 25,566.00     $ 650.33  
Morris James LLP
   10/1 - 10/31/10   $ 36,967.00     $ 697.22     $ 36,967.00     $ 697.22     12/23/2010     5348     1/6/2011   $ 29,573.60     $ 697.22     $ 29,573.60     $ 697.22  
 
                                                                                
Morris James LLP subtotal
                                                                       $ 122,493.20     $ 2,070.92  
 
                                                                                
 
                                                                                    
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
   10/1 - 10/31/10   $ 18,569.50     $ 420.28     $ 18,569.50     $ 420.28     12/22/2010     5355     1/6/2011   $ 14,855.60     $ 450.28     $ 14,855.60     $ 450.28  
 
                                                                                
Young Conaway Stargatt & Taylor LLP subtotal
                                                                       $ 126,563.50     $ 5,479.95  
 
                                                                                
 
                                                                                    
Total
                                                                       $ 2,348,785.40     $ 153,848.65  
 
                                                                                
     
*  
Denotes Payment on remaining amounts due through quarterly filings.

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
     Debtor
  Reporting Period: December 1 — December 31, 2010
                 
    December     Cumulative  
    2010     Filing to Date  
Gross Sales
   $ —     $ 438,100  
Sales Reserves and Allowances
     (8,377 )     329,402  
 
            
Net Revenue
   $ (8,377 )   $ 767,502  
 
                
Cost of Goods Sold
   $ —     $ 860,166  
 
                
Salaries, Bonus & Temp Labor
     40,333       3,440,991  
Benefits, Payroll Taxes, Recruiting & Relocation
     (4,524 )     125,159  
 
            
 
  
Subtotal: Salaries & Benefits
   $ 35,809     $ 3,566,149  
 
                
Stock-Based Compensation
     —       408,171  
Marketing & Advertising
     —       4,011  
Travel & Entertainment
     8,033       65,068  
Facilities and Equipment Related
     4,387       687,822  
Insurance
     85,396       612,750  
Distribution Expense
     0       359,749  
Office & General Lab Supplies
     1,512       15,052  
Consulting & Legal Fees
     504,165       3,934,125  
Patents & Licensing
     (100 )     214,513  
Audit, IR & Financial Fees
     12,900       (29,135 )
Non-Income Taxes
     10,766       42,761  
Depreciation and Amortization
     —       974,542  
Director and SAB Fees
     —       64,771  
 
            
 
                
Subtotal: FTE Expenses
   $ 662,867     $ 10,920,349  
 
            
 
                
Marketing Costs
     (17,487 )     152,088  
Direct Project Costs
     —       53,114  
 
            
Total Expenses
   $ 645,380     $ 11,985,717  
 
            
Income (Loss) from Operations
   $ (653,757 )   $ (11,218,215 )
 
                
Interest Income
     6,928       29,417  
Other income (expense)
     2,552       162,790  
 
            
 
  
Net Income (Loss) Before Taxes
   $ (644,277 )   $ (11,026,009 )
 
            
 
                
Net Income (Loss)
   $ (646,451 )   $ (11,026,009 )
 
            

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
     Debtor
  Reporting Period: December 1 — December 31, 2010
                 
    Current     Petition  
    Month     Date  
Cash & Cash Equivalents
   $ 16,264,005     $ 5,257,718  
Accounts Receivable, net
     —       (490,487 )
Inventory
     —       2,213,158  
Prepaid and Other Current Assets
     1,012,786       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
     —       680,580  
 
                
Intangible Assets
     —       11,877,529  
Accum. Amort — Intangibles
     —       (2,643,218 )
 
            
Intangible Assets, net
     —       9,234,311  
 
                
Total Assets
   $ 17,276,791     $ 22,173,234  
 
                
Accounts Payable — post-petition
     (527,251 )     —  
Accrued Payable to Lilly
     —       —  
Accrued Professional Fees
     (580,000 )     —  
Other Accrued Expenses
     (10,957 )     —  
 
            
Accounts Payable and Accrued Expenses — Post-Petition
     (1,118,209 )     —  
 
                
Accounts Payable — pre-petion
     (893,217 )     (1,214,588 )
Accrued Severance
     (2,432,458 )     (281,258 )
Accrued Payable to Lilly
     —       (5,252 )
Accrued Professional Fees
     (30,000 )     (199,917 )
Accrued R&D Costs
     —       (136,067 )
Accrued Keflex Copay Assistance
     —       (9,276 )
Accrued Moxatag Copay Assistance
     —       (3,705,035 )
Accrued Medicaid Rebates Payable
     —       (563,001 )
Accrued Returns
     —       (1,945,797 )
Other Accrued Expenses
     —       (292,773 )
Wages Payable
     (232,412 )     (306,521 )
Employee Benefits Pay-401k
     —       (33,339 )
Employee Benefits — Flex Spending
     —       (3,899 )
Other Current Liabilities
     (2,246,546 )     (4,810,772 )
 
            
Accounts Payable and Accrued Expenses — Pre-Petition
     (5,834,632 )     (13,507,496 )
 
                
Deferred Contract Revenue — non-current (pre-petition)
     (3,500,000 )     (11,625,000 )
Deferred Lease Expense
     —       (18,340 )
 
                
Total Liabilities
   $ (10,452,841 )   $ (25,150,836 )
 
                
Common Stock
     (865,119 )     (865,119 )
Additional Paid in Capital
     (322,373,995 )     (312,281,358 )
 
                
Retained Earnings
     288,505,818       299,240,744  
YTD P&L
     27,909,346       16,883,336  
 
            
Accumulated Deficit
     316,415,163       316,124,080  
 
            
 
                
Stockholders’ Equity
   $ (6,823,950 )   $ 2,977,602  
 
                
Liabilities & Stockholders’ Equity
   $ (17,276,791 )   $ (22,173,234 )

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
     Debtor
  Reporting Period: December 1 — December 31, 2010
         
Other Post-petition liabilities
        
Professional bankruptcy fees estimates — corporate and local counsel
   $ 270,000  
Professional bankruptcy fees estimates — equity committee counsel
     200,000  
Professional bankruptcy fees estimates — creditors’ committee cousel & FA
     100,000  
Professional bankruptcy fees — KCC estimate
     10,000  
 
      
 
        
Total of Accrued Professional Fees (acct 21210)
   $ 580,000  
 
      

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
     Debtor
  Reporting Period: December 1 — December 31, 2010
SUMMARY OF UNPAID POSTPETITION DEBTS
                                             
Vendor       Voucher     Document     Current Trx         Document      
ID   Vendor Name   Number     Date     Amount     Document Number   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     038754       10/31/2010     $ 25,220.20     OCT 20%   Invoice        
ALS002
   Alston & Bird LLP     038947       11/30/2010     $ 142,770.40     NOV 80%   Invoice        
ALS002
   Alston & Bird LLP     038948       11/30/2010     $ 35,692.60     NOV 20%   Invoice        
ALS002
   Alston & Bird LLP     038949       11/30/2010     $ 3,249.18     NOV EXP   Invoice        
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.     038766       10/31/2010     $ 1,313.70     OCT 20%   Invoice        
BAY002
   Bayard, P.A.     038767       10/31/2010     $ 5,254.80     OCT 80%   Invoice     01/06/11  
BAY002
   Bayard, P.A.     038768       10/31/2010     $ 191.38     OCT EXP   Invoice     01/06/11  
BAY002
   Bayard, P.A.     038843       11/30/2010     $ 1,710.60     NOV 20%   Invoice        
BAY003
   Bayard, P.A.     038844       11/30/2010     $ 6,842.40     NOV 80%   Invoice     01/13/11  
BAY004
   Bayard, P.A.     038845       11/30/2010     $ 201.93     NOV EXP   Invoice     01/13/11  
BET003
   Betsy Price, Tax Assessor-Collector     038672       12/31/2010     $ 5,363.72     00012721220 2010   Invoice        
BET003
   Betsy Price, Tax Assessor-Collector     038741       12/31/2010     $ 420.01     00012721220 2010B   Invoice        
CAR002
   Carella, Byrne, Bain     038847       12/31/2010     $ 10,363.10     JUL 20%   Invoice        
CAR002
   Carella, Byrne, Bain     038848       12/31/2010     $ 41,452.40     JUL 80%   Invoice        
CAR002
   Carella, Byrne, Bain     038849       12/31/2010     $ 7,430.73     JUL EXP   Invoice        
CAR002
   Carella, Byrne, Bain     038850       12/31/2010     $ 11,337.90     JUN 20%   Invoice        
CAR002
   Carella, Byrne, Bain     038851       12/31/2010     $ 45,351.60     JUN 80%   Invoice        
CAR002
   Carella, Byrne, Bain     038852       12/31/2010     $ 5,230.94     JUN EXP   Invoice        
CAR002
   Carella, Byrne, Bain     038853       12/31/2010     $ 8,743.20     MAY 20%   Invoice        
CAR002
   Carella, Byrne, Bain     038854       12/31/2010     $ 34,972.80     MAY 80%   Invoice        
CAR002
   Carella, Byrne, Bain     038855       12/31/2010     $ 8,542.26     MAY EXP   Invoice        
DEN002
   Denton County Tax Office     038717       12/31/2010     $ 511.58     2010   Invoice        
DIC002
   Dickstein Shapiro LLP     038634       8/31/2010     $ 5,791.00     AUG 20%   Invoice        
DIC002
   Dickstein Shapiro LLP     038746       9/30/2010     $ 8,756.40     SEP 20%   Invoice        
DIC002
   Dickstein Shapiro LLP     038830       10/31/2010     $ 4,625.40     OCT 20%   Invoice        
DIC002
   Dickstein Shapiro LLP     038856       11/30/2010     $ 3,407.40     NOV 20%   Invoice        
DIC002
   Dickstein Shapiro LLP     038857       11/30/2010     $ 13,629.60     NOV 80%   Invoice     01/13/11  
DIC002
   Dickstein Shapiro LLP     038858       11/30/2010     $ 2,504.14     NOV EXP   Invoice     01/13/11  
MOR008
   MORRIS JAMES LLP     038563       7/31/2010     $ 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     038689       9/30/2010     $ 6,391.50     SEP 20%   Invoice        
MOR008
   MORRIS JAMES LLP     038823       10/31/2010     $ 7,393.40     OCT 20%   Invoice        
YOU005
   Young Conaway Stargatt & Taylor LLP     038700       8/31/2010     $ 2,474.80     AUG 20%   Invoice        
YOU005
   Young Conaway Stargatt & Taylor LLP     038719       9/30/2010     $ 3,911.30     SEP EXP 20%   Invoice        
YOU005
   Young Conaway Stargatt & Taylor LLP     038787       10/31/2010     $ 3,713.90     OCT 20%   Invoice        
 
                                          
 
                       $ 527,250.77                  
 
                                          

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
     Debtor
  Reporting Period: December 1 — December 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
   $ 6,295     $ —     $ —     $ —     $ —     $ 6,295  
Wages Payable (401k contributions)
     —       —       —       —       —       —  
Taxes Payable (payroll-related taxes)
     —       —       —       —       —       —  
Rent/Leases-Building
     —       —       —       —       —       —  
Rent/Leases-Equipment
     —       —       —       —       —       —  
Secured Debt/Adequate Protection Payments
     —       —       —       —       —       —  
Professional Fees*
     173,425       210,008       47,713       42,036       47,774       520,955  
Amounts Due to Insiders**
     —       —       —       —       —       —  
Other:__________________________
     —       —       —       —       —       —  
Other:__________________________
     —       —       —       —       —       —  
Total Postpetition Debts
   $ 179,720     $ 210,008     $ 47,713     $ 42,036     $ 47,774     $ 527,251  
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: December 1 — December 31, 2010
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
         
Accounts Receivable Reconciliation   Amount  
Total Accounts Receivable at the beginning of the reporting period
   $ 5,232.87  
+ Amounts billed during the period
     —  
- Amounts collected during the period
     —  
- Other adjustments during period
     (5,232.87 )
Total Accounts Receivable at the end of the reporting period
     —  
         
Accounts Receivable Aging   Amount  
0 - 30 days old
     —  
31 - 60 days old
     —  
61 - 90 days old
     —  
91 + days old
     —  
Total Accounts Receivable
     —  
Amount considered uncollectible (Bad Debt)
        
Accounts Receivable (Net)
   $ —  
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: December 1 — December 31, 2010
SALE OF ASSETS
                             
        Relationship                  
Date of       to               Purchase  
Purchase   Purchaser   Debtor   Equipment   Model #   Serial #   Amount  
12/8/2010
   MarkOne   None   Cisco Catalyst 4507R           $ 1,700.00  
12/8/2010
   MarkOne   None   Cisco Catalyst 4506             1,275.00  
12/8/2010
   MarkOne   None   HP Proliant Server             850.00  
12/8/2010
   MarkOne   None   HP Storageworks Modular SAN Array 1000             850.00  
12/8/2010
   MarkOne   None   APC Server Rack             150.00  
12/8/2010
   MarkOne   None   APC Power Strips & Cords             100.00  
12/8/2010
   MarkOne   None   Cisco ASA 5510 Series             637.50  
12/8/2010
   MarkOne   None   APC Symmetra RM (Qty 3) $50 Each             150.00  
12/8/2010
   MarkOne   None   2 Samsung 22" Monitors             170.00  
12/8/2010
   MarkOne   None   Cisco Catalyst 2950             127.50  
12/8/2010
   MarkOne   None   HP Proliant Server             850.00  
12/13/2011
   Dan Gregory   None   Samsung TV             300.00  
12/13/2011
   Dan Gregory   None   Infocus 1100 Projector             300.00  
12/13/2011
   Dan Gregory   None   Lenovo X61 Laptop             300.00  
12/13/2011
   Dan Gregory   None   Office Chair             25.00  
 
                            
 
                          
 
                   Total:   $ 7,785.00  
 
                          

 

 

 

STATUS OF POSTPETITION TAXES
The beginning tax liablitiy should be the ending liability from the prior month or, if this is the first report, the amount should be zero. Attach photocopies of IRS Form 6123 or payment receipt to verify payment or deposit of federal payroll taxes Attach photocopies of any tax returns filed during the reporting period
                                                 
            Amount                              
    Beginning Tax     Withheld or                     Check No. or     Ending Tax  
Federal   Liability     Accrued     Amount Paid     Date Paid     EFT     Liability  
Withholding*
   $ 5,219     $ 11,477     $ (5,739 )     12/29/10     EFT   $ 10,957  
FICA-Employee*
     —       —       —               —       —  
FICA-Employer*
     —       —       —               —       —  
Unemployment
     —       —       —               —       —  
Income
     —       —       —               —       —  
Other:
     —       —       —               —       —  
Total Federal Taxes
     5,219       11,477       (5,739 )             —       10,957  
State and Local
                                                
Withholding
     —       —       —               —       —  
Sales
     —       —       —               —       —  
Excise
     —       —       —               —       —  
Unemployment
     —       —       —               —       —  
Real Property
     6,295       —       —               —       6,295  
Personal Property
     —       —       —               —       —  
Other:
     —       —       —               —       —  
Total State and Local
     6,295       —       —               —       6,295  
Total Taxes
   $ 11,514     $ 11,477     $ (5,739 )           $ —     $ 17,252  
     
*  
Payroll taxes are paid to ADP