MiddleBrook Pharmaceuticals, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - December 20, 2010

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8-K - FORM 8-K - MiddleBrook Pharmaceuticals, Inc.c09990e8vk.htm
Exhibit 99.1
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
     
In re MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
     Debtor
  Reporting Period: November 1 – November 30, 2010
MONTHLY OPERATING REPORT
File with Court and submit copy to United States Trustee within 20 days after end of month
Submit copy of report to any official committee appointed in the case.
                 
        Document   Explanation   Affidavit/Supplement
REQUIRED DOCUMENTS   Form No.   Attached   Attached   Attached
Certifications
                
Schedule of Cash Receipts and Disbursements
   MOR-1   X        
Bank Reconciliation (or copies of debtor’s bank reconciliations)
           see certifications   X
Schedule of Professional Fees Paid
   MOR-1b   X        
Copies of bank statements
           see certifications   X
Cash disbursements journals
       X        
Statement of Operations
   MOR-2   X        
Balance Sheet
   MOR-3   X        
Status of Postpetition Taxes
           see certifications   X
Copies of IRS Form 6123 or payment receipt
                
Copies of tax returns filed during reporting period
                
Summary of Unpaid Postpetition Debts
   MOR-4   X        
Listing of aged accounts payable
   MOR-4   X        
Accounts Receivable Reconciliation and Aging
   MOR-5   X        
Debtor Questionnaire
   MOR-5   X       X
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.
         
 
Signature of Debtor
 
 
Date 		   
 
        
 
Signature of Joint Debtor
 
 
Date 		   
 
        
/s/ Brad Cole
 
Signature of Authorized Individual*
  December 20, 2010
 
Date 		   
 
        
Brad Cole
 
Printed Name of Authorized Individual
  SVP, General Counsel
 
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.

 

 

 

UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
     
In re MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
     Debtor
  Reporting Period: November 1 – November 30, 2010
CERTIFICATIONS
A. Bank Reconciliation Certification
The undersigned verifies that, to my knowledge, all of the Debtors’ November 30, 2010 bank balances have been reconciled in an accurate and timely manner.
                 
Bank Name   Account     Book Balance  
Capital One Bank
     ****8899     $ 2,969,110.21  
Capital One Bank
     ****8910     $ 10,000.00  
Capital One Bank
     ****9471     $ 13,518,751.50  
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
 
Signature of Authorized Individual
  December 20, 2010
 
Date 		   
 
        
David Carlson
 
Printed Name of Authorized Individual
  VP, Finance and Treasurer
 
Title of Authorized Individual 		   

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
     Debtor
  Reporting Period: November 1 – November 30, 2010
MOR 1
                                 
    Current Month     Cumulative Filing to Date  
    Actual     Forecast     Actual     Forecast  
 
                                
Beginning Date
   1-Nov-10   1-Nov-10   3-May-10   3-May-10
Ending Date
   30-Nov-10   30-Nov-10   30-Nov-10   30-Nov-10
 
                                
Cash — Beginning Balance
   $ 17,238,045     $ 17,393,522     $ 5,257,718     $ 5,269,539  
 
                                
Receipts
                                
Lockbox
     —       —       645,880       299,859  
Misc Deposits
     154,965       —       17,675,086       18,688,404  
 
                        
Total Receipts
   $ 154,965     $ —     $ 18,320,966     $ 18,988,263  
 
                                
Operating Disbursements
                                
Gleacher
     —       —       (712,514 )     —  
Dr Directory
     —       —       (77,948 )     (127,774 )
Legal & Deal fees
     (107,772 )     (110,847 )     (1,087,202 )     (881,358 )
KCC LLC
     (6,836 )     (15,000 )     (65,501 )     (130,513 )
Creditors Committee Counsel & FA
     (8,826 )     (150,000 )     (273,538 )     (545,066 )
Equity Committee Counsel
     (54,417 )     (54,417 )     (94,294 )     (244,294 )
Other Professional Fees
     —       (168,283 )     —       (347,480 )
Payroll
     (34,610 )     (41,000 )     (1,177,341 )     (1,450,830 )
Benefits
     (46,922 )     (50,000 )     (263,052 )     (206,567 )
Severance
     —       —       —       —  
Invoices in A/P Aging
     —       (6,349 )     (1,218,559 )     (1,159,397 )
Misc (TX rent, Insurance, ICS)
     (592,263 )     (26,040 )     (1,025,834 )     (350,476 )
Other
     (43,503 )     (32,000 )     (1,089,789 )     (1,240,458 )
voided checks
     —       —       4,749       —  
 
                        
Total Operating Disbursements
   $ (895,148 )   $ (653,936 )   $ (7,080,822 )   $ (6,684,212 )
 
                        
 
                                
Net Operating Cash Flow
   $ (740,183 )   $ (653,936 )   $ 11,240,143     $ 12,304,051  
 
                        
 
                                
Non-Operating Disbursements
                                
Capex
                                
Professional Fees
                                
Total Non-Operating Disbursements
   $ —     $ —     $ —     $ —  
 
                        
 
                                
Net Operating Cash Flow Before Financing
   $ (740,183 )   $ (653,936 )   $ 11,240,143     $ 12,304,051  
 
                        
Financing Activities
                                
Interest Payments
                                
Financing Activities
   $ —     $ —     $ —     $ —  
 
                                
Cash Flow
   $ (740,183 )   $ (653,936 )   $ 11,240,143     $ 12,304,051  
 
                        
 
                                
Ending Cash Balance (per books)
   $ 16,497,862     $ 16,739,586     $ 16,497,862     $ 17,573,590  
 
                        
         
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)        
TOTAL DISBURSEMENTS
   $ (895,148 )
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
   $ (895,148 )

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
     Debtor
  Reporting Period: November 1 – November 30, 2010
Disbursements Journal
Checks cut during period
                         
GL Posting       Checkbook              
Date   Source Document   Amount     CM Trx Number   Voided   Paid ToRcvd From
11/24/2010
   PMCHK   $ 1,527.69     5310   No   A1 DOCUMENT SOLUTIONS, LLC
11/17/2010
   PMCHK   $ 2,995.85     5298   No   ADP
11/17/2010
   PMCHK   $ 79.60     5289   No   ADP Commercial Leasing
11/4/2010
   PMCHK   $ 80,651.95     5286   No   Alston & Bird LLP
11/17/2010
   PMCHK   $ 1,560.35     5297   No   Amber Tomlinson
11/17/2010
   PMCHK   $ 1,050.00     5288   No   American Stock Transfer & Trust Co
11/17/2010
   PMCHK   $ 144.15     5290   No   AT&T Mobility
11/4/2010
   PMCHK   $ 1,043.44     5276   No   ATT
11/4/2010
   PMCHK   $ 651.93     5277   No   Avaya, inc.
11/17/2010
   PMCHK   $ 8,825.95     5291   No   Bayard, P.A.
11/17/2010
   PMCHK   $ 243.60     5303   No   Brad Cole
11/22/2010
   PMCHK   $ 1,892.12     5309   No   Brad Cole
11/4/2010
   PMCHK   $ 1,326.01     5278   No   David Carlson
11/17/2010
   PMCHK   $ 869.37     5292   No   David Carlson
11/4/2010
   PMCHK   $ 8,539.99     5279   No   Delaware Secretary of State
11/17/2010
   PMCHK   $ 3,755.69     5308   No   Delaware Secretary of State
11/4/2010
   PMCHK   $ 675.00     5283   No   Dr. Donald J. Treacy
11/4/2010
   PMCHK   $ 60.00     5280   No   Excel Micro
11/17/2010
   PMCHK   $ 28.00     5293   No   Excel Micro
11/4/2010
   PMCHK   $ 2,372.50     5281   No   Herman Technology Consultants-LLC
11/17/2010
   PMCHK   $ 9,205.84     5294   No   Herman Technology Consultants-LLC
11/24/2010
   PMCHK   $ 2,600.00     5313   No   Herman Technology Consultants-LLC
11/17/2010
   PMCHK   $ 38.00     5295   No   Iron Mountain
11/17/2010
   PMCHK   $ 6,835.84     5299   No   Kurtzman Carson Consultants
11/17/2010
   PMCHK   $ 6,117.11     5307   No   Maguire Partners-Solana Limited Partnership
11/4/2010
   PMCHK   $ 28,200.40     5285   No   MORRIS JAMES LLP
11/17/2010
   PMCHK   $ 26,216.33     5302   No   MORRIS JAMES LLP
11/4/2010
   PMCHK   $ 200.00     5282   No   PayFlex Systems USA, Inc.
11/17/2010
   PMCHK   $ 979.00     5304   No   Pure Compliance
11/17/2010
   PMCHK   $ 50.00     5296   No   Shred-it USA, DBA Shred-it Dallas
11/17/2010
   PMCHK   $ 46,456.82     5300   No   United Healthcare Insurance Co.
11/17/2010
   PMCHK   $ 464.94     5301   No   UNUM
11/24/2010
   PMCHK   $ 334.30     5311   No   Verizon Wireless
11/4/2010
   PMCHK   $ 20.00     5284   No   WorldWide express
11/17/2010
   PMCHK   $ 125.69     5305   No   WorldWide express
11/24/2010
   PMCHK   $ 427.67     5312   No   WorldWide express
11/4/2010
   PMCHK   $ 10,376.95     5287   No   Young Conaway Stargatt & Taylor LLP
11/17/2010
   PMCHK   $ 16,743.11     5306   No   Young Conaway Stargatt & Taylor LLP
 
                      
 
                        
 
       $ 273,685.19     Checks Cut        
 
                      

 

 

 

Debits to bank other than checks
                         
Transaction                   Customer    
Date   Description   Amount     Bank Ref#   Ref. #   Payee / Description
11/5/2010
   Payroll Fees   $ 326.11     WDL000001225   CMTRX   ADP
11/10/2010
   Payroll   $ 14,435.78     WDL000001227   CMTRX   ADP
11/12/2010
   Payroll Taxes   $ 5,738.80     WDL000001228   CMTRX   ADP
11/19/2010
   Payroll Fees   $ 310.96     WDL000001234   CMTRX   ADP
11/26/2010
   Payroll   $ 14,435.77     OEX000001235   CMTRX   ADP
11/26/2010
   Payroll Fees   $ 70.05     OEX000001236   CMTRX   ADP
11/24/2010
   D&O Insurance   $ 586,145.00     035279   CMTRX   William Gallagher Associates
 
                      
 
                        
        $ 621,462.47     Debits to Bank other than Checks
 
                      
 
                        
Voided Checks from Prior Periods   $ 0.00              
 
                      
 
                        
        $ 895,147.66     Total disbursements
 
                      
                         
GL Posting       Checkbook              
Date   Source Document   Amount     CM Trx Number   Voided   Paid ToRcvd From
 
                        
Checks cleared by bank:                    
11/1/2010
   DEBIT MEMO - CapOne   $ 1,987.65             CONTROL DISBURSEMENT/CLEARED CHECKS
11/2/2010
   DEBIT MEMO - CapOne   $ 120,651.40             CONTROL DISBURSEMENT/CLEARED CHECKS
11/3/2010
   DEBIT MEMO - CapOne   $ 94,536.55             CONTROL DISBURSEMENT/CLEARED CHECKS
11/4/2010
   DEBIT MEMO - CapOne   $ 19,349.45             CONTROL DISBURSEMENT/CLEARED CHECKS
11/5/2010
   DEBIT MEMO - CapOne   $ 52,137.95             CONTROL DISBURSEMENT/CLEARED CHECKS
11/9/2010
   DEBIT MEMO - CapOne   $ 114,241.10             CONTROL DISBURSEMENT/CLEARED CHECKS
11/10/2010
   DEBIT MEMO - CapOne   $ 29,918.84             CONTROL DISBURSEMENT/CLEARED CHECKS
11/12/2010
   DEBIT MEMO - CapOne   $ 1,326.01             CONTROL DISBURSEMENT/CLEARED CHECKS
11/15/2010
   DEBIT MEMO - CapOne   $ 20.00             CONTROL DISBURSEMENT/CLEARED CHECKS
11/16/2010
   DEBIT MEMO - CapOne   $ 10,376.95             CONTROL DISBURSEMENT/CLEARED CHECKS
11/19/2010
   DEBIT MEMO - CapOne   $ 2,372.50             CONTROL DISBURSEMENT/CLEARED CHECKS
11/22/2010
   DEBIT MEMO - CapOne   $ 979.00             CONTROL DISBURSEMENT/CLEARED CHECKS
11/23/2010
   DEBIT MEMO - CapOne   $ 28.00             CONTROL DISBURSEMENT/CLEARED CHECKS
11/24/2010
   DEBIT MEMO - CapOne   $ 103,329.13             CONTROL DISBURSEMENT/CLEARED CHECKS
11/26/2010
   DEBIT MEMO - CapOne   $ 19,084.12             CONTROL DISBURSEMENT/CLEARED CHECKS
11/30/2010
   DEBIT MEMO - CapOne   $ 8,217.68             CONTROL DISBURSEMENT/CLEARED CHECKS
 
                      
 
                        
 
       $ 578,556.33              
 
                      

 

 

 

     
In re: MiddleBrook Pharmaceuticals, Inc.
  Case No. 10-11485
     Debtor
  Reporting Period: November 1 – November 30, 2010
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID
This schedule is to include all retained professional payments from case inception to current month
                                                                                 
        Invoice     Invoice                                    
        Amount -     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 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                     12/14/2010                           $ 0.00     $ 0.00  
 
                                                                            
Bayard, P.A. subtotal
                                                                   $ 108,261.00     $ 1,882.50  
 
                                                                            
 
                                                                                
Carella, Byrne, Bain
   annuity services   $ 450.00     $ 6,993.00     $ 450.00     $ 6,993.00     N/A   5044   7/2/2010   $ 450.00     $ 6,993.00     $ 450.00     $ 6,993.00  
Carella, Byrne, Bain
   patent maintenance   $ 50.00     $ 516.00     $ 50.00     $ 516.00     N/A   2588   6/21/2010   $ 50.00     $ 516.00     $ 50.00     $ 516.00  
 
                                                                            
Carella, Byrne, Bain subtotal
                                                                   $ 500.00     $ 7,509.00  
 
                                                                            
 
                                                                                
Dickstein Shapiro LLP
   5/11 - 5/31/10   $ 134,068.50     $ 4,147.20     $ 134,068.50     $ 4,147.20     7/19/2010   5087   7/22/2010   $ 107,254.80     $ 4,147.20     $ 107,254.80     $ 4,147.20  
Dickstein Shapiro LLP
   6/1 - 6/30/10   $ 63,546.50     $ 3,309.16     $ 63,546.50     $ 3,309.16     8/10/2010   5131   8/17/2010   $ 50,837.50     $ 3,309.16     $ 50,837.50     $ 3,309.16  
Dickstein Shapiro LLP
   7/1 - 7/31/10   $ 63,076.25     $ 2,223.29     $ 63,076.25     $ 2,223.29     9/3/2010   5191   9/8/2010   $ 50,461.00     $ 2,223.29     $ 50,461.00     $ 2,223.29  
Dickstein Shapiro LLP
   8/1 - 8/31/10   $ 28,955.00     $ 973.23     $ 28,955.00     $ 973.23     10/5/2010   5248   10/13/2010   $ 23,164.00     $ 973.23     $ 23,164.00     $ 973.23  
Dickstein Shapiro LLP
   4/30 - 7/31/10*                                   10/19/2010   5264   10/27/2010   $ 52,137.95     $ 0.00     $ 52,137.95     $ 0.00  
Dickstein Shapiro LLP
   9/1 - 9/31/10   $ 43,782.00     $ 3,606.17     $ 43,782.00     $ 3,606.17     11/19/2010   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 subtotal
                                                                   $ 337,382.45     $ 14,282.84  
 
                                                                            
 
                                                                                
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 subtotal
                                                                   $ 124,061.00     $ 33,458.85  
 
                                                                            
 
                                                                                
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                     12/23/2010                           $ 0.00     $ 0.00  
 
                                                                            
Morris James LLP subtotal
                                                                   $ 92,919.60     $ 1,373.70  
 
                                                                            
 
                                                                                
Young Conaway Stargatt & Taylor LLP
   4/30 - 5/31/10   $ 41,889.00     $ 0.00     $ 41,889.00     $ 0.00     7/16/2010   5083   7/21/2010   $ 33,511.20             $ 33,511.20          
Young Conaway Stargatt & Taylor LLP
   4/30 - 5/31/10   $ 0.00     $ 1,099.45     $ 0.00     $ 1,099.45     7/16/2010   5088   7/22/2010           $ 1,099.45             $ 1,099.45  
Young Conaway Stargatt & Taylor LLP
   6/1 - 6/30/10   $ 25,033.50     $ 636.75     $ 25,033.50     $ 636.75     8/9/2010   5129   8/12/2010   $ 20,026.80     $ 636.75     $ 20,026.80     $ 636.75  
Young Conaway Stargatt & Taylor LLP
   7/1 - 7/31/10   $ 19,341.00     $ 1,717.81     $ 19,341.00     $ 1,717.81     8/31/2010   5190   9/8/2010   $ 15,472.80     $ 1,717.81     $ 15,472.80     $ 1,717.81  
Young Conaway Stargatt & Taylor LLP
   4/30 - 7/31/10*                                   10/19/2010   5274   10/27/2010   $ 17,152.70     $ 0.00     $ 17,152.70     $ 0.00  
Young Conaway Stargatt & Taylor LLP
   8/1 - 8/31/10   $ 12,374.00     $ 477.75     $ 12,374.00     $ 477.75     11/3/2010   5287   11/4/2010   $ 9,899.20     $ 477.75     $ 9,899.20     $ 477.75  
Young Conaway Stargatt & Taylor LLP
   9/1 - 9/31/10   $ 19,556.50     $ 1,097.91     $ 19,556.50     $ 1,097.91     11/12/2010   5306   11/17/2010   $ 15,645.20     $ 1,097.91     $ 15,645.20     $ 1,097.91  
Young Conaway Stargatt & Taylor LLP
   10/1 - 10/31/10   $ 18,569.50     $ 420.28                     12/22/2010                           $ 0.00     $ 0.00  
 
                                                                            
Young Conaway Stargatt & Taylor LLP subtotal
                                                                   $ 111,707.90     $ 5,029.67  
 
                                                                            
 
                                                                                
Total
                                                                   $ 2,266,808.40     $ 136,835.14  
 
                                                                            
     
*  
Denotes Payment on remaining amounts due through quarterly filings.

 

 

 

         
In re: MiddleBrook Pharmaceuticals, Inc.   Case No. 10-11485
     Debtor   Reporting Period: November 1 – November 30, 2010
                 
    November     Cumulative  
    2010     Filing to Date  
Gross Sales
   $ —     $ 438,100  
Sales Reserves and Allowances
     —       337,779  
 
            
 
                
Net Revenue
   $ —     $ 775,879  
 
                
Cost of Goods Sold
   $ —     $ 860,166  
 
                
Salaries, Bonus & Temp Labor
     44,522       3,400,658  
Benefits, Payroll Taxes, Recruiting & Relocation
     17,122       129,683  
 
            
 
                
Subtotal: Salaries & Benefits
   $ 61,644     $ 3,530,340  
 
                
Stock-Based Compensation
     —       408,171  
Marketing & Advertising
     —       4,011  
Travel & Entertainment
     3,161       57,035  
Facilities and Equipment Related
     394,173       683,435  
Insurance
     66,558       527,354  
Distribution Expense
     —       359,749  
Office & General Lab Supplies
     1,712       13,539  
Consulting & Legal Fees
     177,947       3,429,961  
Patents & Licensing
     —       214,613  
Audit, IR & Financial Fees
     7,864       (42,035 )
Non-Income Taxes
     3,390       31,996  
Depreciation and Amortization
     —       974,542  
Director and SAB Fees
     —       64,771  
 
            
 
                
Subtotal: FTE Expenses
   $ 716,450     $ 10,257,482  
 
            
 
                
Marketing Costs
     —       169,576  
Direct Project Costs
     —       53,114  
 
            
 
                
Total Expenses
   $ 716,450     $ 11,340,338  
 
            
 
                
Income (Loss) from Operations
   $ (716,450 )   $ (10,564,458 )
 
                
Interest Income
     7,257       22,489  
Other income (expense)
     128,292       162,411  
 
            
 
                
Net Income (Loss) Before Taxes
   $ (580,900 )   $ (10,379,558 )
 
            
 
                
Net Income (Loss)
   $ (580,900 )   $ (10,379,558 )
 
            

 

 

         
In re: MiddleBrook Pharmaceuticals, Inc.   Case No. 10-11485
     Debtor   Reporting Period: November 1 – November 30, 2010
                 
    Current     Petition  
    Month     Date  
Cash & Cash Equivalents
   $ 16,497,862     $ 5,257,718  
Accounts Receivable, net
     5,233       (490,487 )
Inventory
     —       2,213,158  
Prepaid and Other Current Assets
     1,094,744       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
     167,705       680,580  
 
                
Intangible Assets
     —       11,877,529  
Accum. Amort — Intangibles
     —       (2,643,218 )
 
            
Intangible Assets, net
     —       9,234,311  
 
                
Total Assets
   $ 17,765,543     $ 22,173,234  
 
                
Accounts Payable — post-petition
     (277,976 )     —  
Accrued Payable to Lilly
     —       —  
Accrued Professional Fees
     (639,000 )     —  
 
            
Accounts Payable and Accrued Expenses — Post-Petition
     (922,195 )     —  
 
                
Accounts Payable — pre-petion
     (909,551 )     (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
     (1,402 )     (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
     (2,261,875 )     (4,810,772 )
 
            
Accounts Payable and Accrued Expenses — Pre-Petition
     (5,867,698 )     (13,507,496 )
 
                
Deferred Contract Revenue — non-current (pre-petition)
     (3,500,000 )     (11,625,000 )
Deferred Lease Expense
     —       (18,340 )
 
                
Total Liabilities
   $ (10,289,892 )   $ (25,150,836 )
 
                
Common Stock
     (865,119 )     (865,119 )
Additional Paid in Capital
     (322,373,995 )     (312,281,358 )
 
                
Retained Earnings
     288,500,568       299,240,744  
YTD P&L
     27,262,895       16,883,336  
 
            
Accumulated Deficit
     315,763,463       316,124,080  
 
            
 
                
Stockholders’ Equity
   $ (7,475,651 )   $ 2,977,602  
 
                
Liabilities & Stockholders’ Equity
   $ (17,765,543 )   $ (22,173,234 )

 

 

         
In re: MiddleBrook Pharmaceuticals, Inc.   Case No. 10-11485
     Debtor   Reporting Period: November 1 – November 30, 2010
         
Other Post-petition liabilities
        
Professional bankruptcy fees estimates — equity committee counsel
   $ 200,000  
Professional legal fees
     169,000  
Professional bankruptcy fees estimates — corporate and local counsel
     150,000  
Professional bankruptcy fees estimates — creditors’ committee cousel & FA
     100,000  
Professional bankruptcy fees — KCC estimate
     20,000  
 
      
 
        
Total of Accrued Professional Fees (acct 21210)
   $ 639,000  
 
      

 

 

         
In re: MiddleBrook Pharmaceuticals, Inc.   Case No. 10-11485
     Debtor   Reporting Period: November 1 – November 30, 2010
SUMMARY OF UNPAID POSTPETITION DEBTS
                                             
        Voucher     Document     Current Trx         Document      
Vendor 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     038755       10/31/2010     $ 100,880.80     OCT 80%   Invoice     12/09/10  
ALS002
   Alston & Bird LLP     038756       10/31/2010     $ 2,337.07     OCT EXP   Invoice     12/09/10  
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        
BAY002
   Bayard, P.A.     038768       10/31/2010     $ 191.38     OCT EXP   Invoice        
CSC003
   Corporation Service Company     038770       9/22/2010     $ 3,901.50     73162446   Invoice     12/02/10  
CAR012
   David Carlson     038769       11/30/2010     $ 115.64     11302010   Invoice     12/02/10  
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     038747       9/30/2010     $ 35,025.60     SEP 80%   Invoice     12/02/10  
DIC002
   Dickstein Shapiro LLP     038748       9/30/2010     $ 3,606.17     SEP EXP   Invoice     12/02/10  
HER004
   Herman Technology Consultants-LLC     038771       11/28/2010     $ 1,235.00     014   Invoice     12/02/10  
ICS001
   Integrated Commercialization Sol.     038730       11/3/2010     $ 9,352.93     151-10014205   Invoice     12/02/10  
MOR008
   MORRIS JAMES LLP     038563       8/30/2010     $ 9,905.00     JULY FEES 20%   Invoice        
MOR008
   MORRIS JAMES LLP     038669       8/31/2010     $ 6,933.40     AUG FEES 20%   Invoice        
MOR008
   MORRIS JAMES LLP     038689       9/30/2010     $ 6,391.50     SEP 20%   Invoice        
PUR001
   Pure Compliance     038772       11/23/2010     $ 451.00     C08853   Invoice     12/02/10  
WIL002
   William Gallagher Associates     038774       11/24/2010     $ 3,192.00     140843   Invoice     12/02/10  
YOU005
   Young Conaway Stargatt & Taylor LLP     038700       8/31/2010     $ 2,474.80     AUG 20%   Invoice        
 
                                          
 
                                            
 
                       $ 277,975.99                  
 
                                          

 

 

         
In re: MiddleBrook Pharmaceuticals, Inc.   Case No. 10-11485
     Debtor   Reporting Period: November 1 – November 30, 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
   $ 18,249     $ —     $ —     $ —     $ —     $ 18,249  
Wages Payable (401k contributions)
     —       —       —       —       —       —  
Taxes Payable (payroll-related taxes)
     —       —       —       —       —       —  
Rent/Leases-Building
     —       —       —       —       —       —  
Rent/Leases-Equipment
     —       —       —       —       —       —  
Secured Debt/Adequate Protection Payments
     —       —       —       —       —       —  
Professional Fees*
     —       135,198       76,755       47,774               259,727  
Amounts Due to Insiders**
     —       —       —       —       —       —  
Other:
     —       —       —       —       —       —  
Other:
     —       —       —       —       —       —  
 
                                    
Total Postpetition Debts
   $ 18,249     $ 135,198     $ 76,755     $ 47,774     $ —     $ 277,976  
 
                                    
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).

 

 

         
In re: MiddleBrook Pharmaceuticals, Inc.   Case No. 10-11485
     Debtor   Reporting Period: November 1 – November 30, 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
     —  
Total Accounts Receivable at the end of the reporting period
     5,232.87  
         
Accounts Receivable Aging   Amount  
0 - 30 days old
     —  
31 - 60 days old
     —  
61 - 90 days old
     —  
91+ days old
     5,232.70  
Total Accounts Receivable
     5,232.70  
Amount considered uncollectible (Bad Debt)
        
Accounts Receivable (Net)
   $ 5,232.70  
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

 

 

         
In re: MiddleBrook Pharmaceuticals, Inc.   Case No. 10-11485
     Debtor   Reporting Period: November 1 – November 30, 2010
SALE OF ASSETS
                             
Date of       Relationship               Purchase  
Purchase   Purchaser   to Debtor   Equipment   Model #   Serial #   Amount  
11/1/2010
   Jay Chenault   None   InFocus IN1100 Projector   IN1100       $ 400.00  
11/1/2010
   Jay Chenault   None   HP 4200 Printer   4200         75.00  
11/1/2010
   Jay Chenault   None   Onkyo Stereo Receiver             75.00  
11/1/2010
   Jay Chenault   None   Sanyo Projector   PLC-XU88         150.00  
11/1/2010
   Jay Chenault   None   2 Reception Chairs             50.00  
11/3/2010
   Samantha Zirdock   None   Infocus 1100 Projector             385.71  
11/3/2010
   Thom Gray   None   Samsung 19" Monitor   SyncMaster 920WM         65.00  
11/4/2010
   Scott Conklin   None   Lenovo X200 Laptop   X200   R90AYDW     375.00  
11/4/2010
   Scott Conklin   None   Lenovo X200 Laptop   X200   L3ACD7K     375.00  
11/4/2010
   Scott Conklin   None   Lenovo X200 Laptop   X200   L3ACD7T     375.00  
11/4/2010
   Scott Conklin   None   Lenovo X200 Laptop   X200   L3ACD7B     375.00  
11/4/2010
   Scott Conklin   None   Fujitsu Laptop             150.00  
11/4/2010
   Scott Conklin   None   Toshiba Laptop             200.00  
11/8/2010
   Jay Chenault   None   2 conference tables             300.00  
11/8/2010
   Jay Chenault   None   15 tan arm conference chairs             250.00  
11/8/2010
   Jay Chenault   None   4 tan reception chairs             100.00  
11/8/2010
   Jay Chenault   None   2 hp laser printers and toner             75.00  
11/8/2010
   Jay Chenault   None   1 laptop             375.00  
11/8/2010
   Pam McCune   None   8 Wood Bookshelves             480.00  
11/8/2010
   Pam McCune   None   2 Metal Shelves             100.00  
11/8/2010
   Pam McCune   None   1 2 Drawer filing cabinet             60.00  
11/8/2010
   Pam McCune   None   1 Chair             25.00  
11/9/2010
   Ramesh Akula   None   Lenovo X61 Laptop   x61         300.00  
11/9/2010
   Ramesh Akula   None   10 Desktops             200.00  
11/9/2010
   Ramesh Akula   None   Dvd Player             40.00  
11/9/2010
   Ramesh Akula   None   5 Keyboards             25.00  
11/9/2010
   Ramesh Akula   None   5 Mice             25.00  
11/9/2010
   Ramesh Akula   None   HP Printer 3030   3030         50.00  
11/9/2010
   Ramesh Akula   None   3 Blackberry’s             50.00  
11/9/2010
   Ramesh Akula   None   1 Hard Drive             30.00  
11/9/2010
   Ramesh Akula   None   2 Infocus 1100 Projectors   1100         700.00  
11/9/2010
   Ramesh Akula   None   Infocus Projector             80.00  
11/9/2010
   Ramesh Akula   None   Toshiba Laptop             100.00  
11/9/2010
   Ramesh Akula   None   6 Desktops             120.00  
11/12/2010
   Bob Gonzales   None   2 Infocus 1100 Projectors   1100         700.00  
11/14/2010
   Eric Maguire   None   15 - 5 Drawer File Cabinets             1,500.00  
11/14/2010
   Eric Maguire   None   Kitchen Tables & Chairs             400.00  

 

 

         
In re: MiddleBrook Pharmaceuticals, Inc.   Case No. 10-11485
     Debtor   Reporting Period: November 1 – November 30, 2010
                             
Date of       Relationship               Purchase  
Purchase   Purchaser   to Debtor   Equipment   Model #   Serial #   Amount  
11/14/2010
   Eric Maguire   None   6 Office Desks             450.00  
11/14/2010
   Eric Maguire   None   3 Book shelves             75.00  
11/14/2010
   Eric Maguire   None   30 Office Chairs             500.00  
11/14/2010
   Eric Maguire   None   4 Desk credenzas             175.00  
11/14/2010
   Eric Maguire   None   2 Desktops             25.00  
11/14/2010
   Eric Maguire   None   2 Printers             75.00  
11/14/2010
   Rocky Cherry   None   10 - 5 Drawer Lateral File Cabinets             1,000.00  
11/14/2010
   Rocky Cherry   None   3 - 2 Drawer Lateral File Cabinets             150.00  
11/14/2010
   Rocky Cherry   None   1 Leather Chair             50.00  
11/14/2010
   Rocky Cherry   None   1 Small Conference Table             300.00  
11/15/2010
   Mike Kaiser   None   Infocus 1100 Projector             350.00  
11/15/2010
   Sergiu Botez   None   Samsung 19" Monitor             89.15  
11/16/2010
   Adam Rhodes   None   Infocus 1100 Projector             370.85  
11/17/2010
   Par Pharmaceuticals   None   MGII Encapsulator   MGII         113,535.60  
11/21/2010
   Daniel Pohorily   None   Avaya Phone System & Phones             1,500.00  
11/28/2010
   David Noteware   None   Infocus 1100 Projector             385.71  
11/30/2010
   Scott Abraham   None   4 JBL Speakers             125.00  
 
                          
 
                            
 
                   Total:   $ 128,292.02