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Exhibit 99.1

B26 (Official Form 26) (12/08)

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

 

 

 

  X     
  :      Chapter 11

In re

  :      Case No. 14-12515 (PJW)

DENDREON CORPORATION, et al.,

  :      Jointly Administered
  :     

                                                          Debtors.1

      
  :     

 

 

  X     

PERIODIC REPORT REGARDING VALUE, OPERATIONS AND

PROFITABILITY OF ENTITIES IN WHICH THE ESTATE OF DENDREON CORPORATION

HOLDS A SUBSTANTIAL OR CONTROLLING INTEREST

This is the report as of December 31, 2013 & June 30, 2014 on the value, operations and profitability of those entities in which the Debtors’ estates hold a substantial or controlling interest, as required by Bankruptcy Rule 2015.3. The estate of Dendreon Corporation holds a substantial or controlling interest in the following entity:

 

Name of Entity   

 

      Interest of the      
Estate

 

   

Dendreon Holdings B.V.

 

  

100%

 

   

Dendreon Operations B.V.

 

  

100%

 

   

Dendreon Germany GmbH

 

  

100%

 

   

Dendreon UK Limited

 

  

100%

 

This periodic report (the “Periodic Report”) consists of three exhibits for each entity listed above. Exhibit A contains a valuation estimate for each entity as of a date not more than two years prior to the date of this report. It also contains a description of the valuation method used. Exhibit B is presented in columnar format for each entity and contains a balance sheet, a statement of operations, a statement of cash flows and a statement of changes in shareholders’ or partners’ equity (deficit) for the period covered by the Periodic Report, along with summarized footnotes. Exhibit C contains a description of the business operations of these entities.

 

 

1 The Debtors and the last four digits of their respective taxpayer identification numbers are as follows: Dendreon Corporation (3193), Dendreon Holdings, LLC (8047), Dendreon Distribution, LLC (8598) and Dendreon Manufacturing, LLC (7123). The address of the Debtors’ corporate headquarters is 1301 2nd Avenue, Seattle, Washington 98101.


B26 (Official Form 26) (12/08) – Cont.

 

THIS REPORT MUST BE SIGNED BY A REPRESENTATIVE OF THE TRUSTEE OR DEBTOR IN POSSESSION.

The undersigned, having reviewed the above listing of entities in which the estate of Dendreon Corporation holds a substantial or controlling interest, and being familiar with the Debtors’ financial affairs, verifies under the penalty of perjury that the listing is complete, accurate and truthful to the best of his/her knowledge.

Date:  December 1, 2014

 

/s/ Gregory R. Cox

Signature of Authorized Individual

Gregory R. Cox

Name of Authorized Individual

Interim Chief Financial Officer

Title of Authorized Individual

 

2


B26 (Official Form 26) (12/08) – Cont.

 

Notes to Periodic Report Required by Bankruptcy Rule 2015.3

The financial statements contained in this Periodic Report are unaudited. While management of the Debtors and their affiliates have made every reasonable effort to ensure that these financial statements are accurate and complete based upon information that was available at the time of preparation, the subsequent receipt of information may result in material changes in the data contained in these financial statements, and inadvertent errors or omissions may exist. To the extent the Debtors discover additional information that may differ materially from the information set forth in the financial statements contained herein, the Debtors may amend, supplement or otherwise modify this Periodic Report to reflect such changes. Accordingly, the Debtors reserve all rights to amend, supplement or otherwise modify this Periodic Report as they deem necessary or appropriate.

1. Reservation of Rights. Nothing contained in this Periodic Report shall constitute a waiver of any of the Debtors’ rights or an admission with respect to their chapter 11 cases including, but not limited to, matters involving objections to claims, substantive consolidation, equitable subordination, defenses, characterization or re-characterization of contracts, assumption or rejection of contracts under the provisions of chapter 3 of title 11 of the United States Code (the “Bankruptcy Code”) and/or causes of action under the provisions of chapter 5 of the Bankruptcy Code or any other relevant applicable laws to recover assets or avoid transfers.

2. Basis of Presentation. The financial statements contained herein were not intended to reconcile to any financial statements otherwise prepared or distributed by the Debtors or any of the Debtors’ affiliates. Significant efforts have been put forth to attribute the assets and liabilities to the proper legal entity. However, the Debtors’ accounting systems, policies, and practices were developed with a view to producing consolidated reporting, rather than by legal entity. Accordingly, the Debtors reserve all rights to supplement or amend any financial statements contained in this Periodic Report.

Moreover, given, among other things, the uncertainty surrounding the collection and ownership of certain assets and the valuation and nature of certain liabilities, to the extent that a non-debtor entity shows more assets than liabilities, this is not an admission that the non-debtor entity was solvent at the Petition Date or at any time prior to the Petition Date, including the date as of or for the period of any financial statements or other financial information included in this Periodic Report. Likewise, to the extent that a non-debtor entity shows more liabilities than assets, this is not an admission that the non-debtor entity was insolvent at the Petition Date or at any time prior to the Petition Date, including the date as of or for the period of any financial statements or other financial information included in this Periodic Report.

3. Current values. Unless otherwise indicated, the basis for all current values included in this Periodic Report was the net book value from relevant corporate books and records as of the close of business on December 31, 2013 & June 30, 2014. The net book value as of December 31, 2013 & June 30, 2014 may not reflect the current value of the respective assets.

For the reasons discussed above, the Debtors caution readers not to place undue reliance upon the information contained in this Periodic Report. For further information, please refer to the consolidated financial statements and footnotes thereto in the respective Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and the Quarterly Report on Form 10-Q for the period ended June 30, 2014 for the Debtors and other filings by the Debtors with the Securities and Exchange Commission.

 

3


EXHIBIT A


Dendreon Corporation

Exhibit A - Schedule of Foreign Subsidiaries

 

Name of Entity    Interest of the Estate    Valuation Estimate

Dendreon Holdings B.V.

   100%      $                                                                                  85,104  

Dendreon Operations B.V.

   100% (wholly owned subsidary of Holdings B.V.)      $                                                                                  23,059  

Dendreon Germany GmbH

   100% (wholly owned subsidary of Holdings B.V.)      $                                                                                  31,923  

Dendreon UK Limited

   100% (wholly owned subsidary of Holdings B.V.)      $                                                                                           0  

NOTE: Valuations are based on net book value as of 6/30/14. Dendreon UK Limited is a UK subsidiary formed for the eventual sale and delivery of PROVENGE. As of 6/30/14, the company did not have any assets or liabilities.


EXHIBIT B


Dendreon Holdings BV

Comparative Balance Sheets

(Unaudited)

 

           June 30, 2014                December 31, 2013      

Assets

     

Current Assets

     

Cash

     $ 22,866           $ 23,337     
  

 

 

    

 

 

 

Total current assets

     22,866           23,337     

Other Assets

     

Investment in subsidiaries

     61,767           61,767     
  

 

 

    

 

 

 

Total other assets

 

    

 

61,767  

 

  

 

    

 

61,767  

 

  

 

  

 

 

    

 

 

 

Total Assets

     $ 84,633           $ 85,104     
  

 

 

    

 

 

 

Liabilities and Owner’s Equity

     

Liabilities

     

Total liabilities

     $ -               $ -         

Owner’s Equity

     

Owner’s investment

     25,708           25,708     

Additional paid in capital

     61,767           61,767     

Accumulated deficit

     (1,695)          (1,477)    

Accumulated other comprehensive loss

     (1,147)          (894)    
  

 

 

    

 

 

 

Total owner’s equity

 

    

 

85,104  

 

  

 

    

 

85,104  

 

  

 

  

 

 

    

 

 

 

Total Liabilities and Owner’s Equity

     $ 85,104           $ 85,104     
  

 

 

    

 

 

 


Dendreon Operations BV

Comparative Balance Sheets

(Unaudited)

 

    June 30, 2014         December 31, 2013      

Assets

   

Current Assets

   

Cash

    $ 23,059          $ 23,533     
 

 

 

   

 

 

 

Total current assets

 

   

 

23,059  

 

  

 

   

 

23,533  

 

  

 

 

 

 

   

 

 

 

Total Assets

    $ 23,059          $ 23,533     
 

 

 

   

 

 

 

 

Liabilities and Owner’s Equity

   

 

Liabilities

   

Total liabilities

    $ -              $ -         

Owner’s Equity

   

Owner’s investment

    25,904          25,904     

Accumulated deficit

    (1,493)         (1,275)    

Accumulated other comprehensive income

    (1,352)         (1,096)    
 

 

 

   

 

 

 

Total owner’s equity

 

   

 

23,059  

 

  

 

   

 

23,533  

 

  

 

 

 

 

   

 

 

 

Total Liabilities and Owner’s Equity

    $ 23,059          $ 23,533     
 

 

 

   

 

 

 


Dendreon Germany GmbH

Comparative Balance sheets

(Unaudited)

 

      June 30, 2014           December 31, 2013      

Assets

   

Current Assets

   

Cash

    $ 31,923          $ 32,611     
 

 

 

   

 

 

 

Total current assets

 

   

 

31,923  

 

  

 

   

 

32,611  

 

  

 

 

 

 

   

 

 

 

Total Assets

    $ 31,923          $ 32,611     
 

 

 

   

 

 

 

 

Liabilities and Owner’s Equity

 

   

Liabilities

   

Total liabilities

    $ -              $ -         

Owner’s Equity

   

Owner’s investment

    35,863          35,863     

Accumulated deficit

    (2,168)         (1,834)    

Accumulated other comprehensive loss

    (1,771)         (1,417)    
 

 

 

   

 

 

 

Total owner’s equity

 

   

 

31,923  

 

  

 

   

 

32,611  

 

  

 

 

 

 

   

 

 

 

Total Liabilities and Owner’s Equity

    $ 31,923          $ 32,611     
 

 

 

   

 

 

 


Dendreon Holdings BV

Statement of Operations

(Unaudited)

 

         Six Months Ended    
June 30, 2014
        Year Ended Dec 31,     
2013
 
    

 

$ (dollars)

   

 

$ (dollars)

 

Revenues:

    

Total Revenues

     $ -              $ -         
  

 

 

   

 

 

 

 

Expenses:

    

General and administrative

     218          612     
  

 

 

   

 

 

 

Total Expenses

     218          612     

 

Operating loss

  

 

 

 

(218) 

 

  

 

 

 

 

(612) 

 

  

Exchange rate differences

     (253)         1,040     
  

 

 

   

 

 

 

Net Income (Loss)

     $ (471)         $ 428     
  

 

 

   

 

 

 


Dendreon Operations BV

Statement of Operations

(Unaudited)

 

         Six Months Ending    
June 30, 2014
        Year Ending Dec     
31, 2013
 
     $ (dollars)     $ (dollars)  

Revenues:

    

Total Revenues

     $ -              $ -         
  

 

 

   

 

 

 

 

Expenses:

    

General and administrative

     218          612     
  

 

 

   

 

 

 

Total Expenses

     218          612     

 

Operating loss

  

 

 

 

(218) 

 

  

 

 

 

 

(612) 

 

  

Exchange rate differences

     (256)         1,048     
  

 

 

   

 

 

 

 

Net Income (Loss)

  

 

  $

 

(474) 

 

  

 

 

  $

 

436  

 

  

  

 

 

   

 

 

 


Dendreon Germany GmbH

Statement of Operations

(Unaudited)

 

         Six Months Ending    
June 30, 2014
       Year Ending Dec 31,  
2013
 
     $ (dollars)      $ (dollars)  

Revenues:

     

Total Revenues

     $ -               $ -         
  

 

 

    

 

 

 

Expenses:

     

General and administrative

     334           645     
  

 

 

    

 

 

 

Total Expenses

     334           645     

Operating loss

     (334)          (645)    

Exchange rate differences

     (354)          1,435     
  

 

 

    

 

 

 

Net Income

       $ (688)            $ 790     
  

 

 

    

 

 

 


Dendreon Holdings BV

Statement of Cash Flows

(Unaudited)

 

      For the Six Months  
Ended June 30,
2014
       For the Year Ended  
Dec 31, 2013
 
    $ (dollars)      $ (dollars)  

Cash flows from operating activities:

    

Net income (loss)

    $ (471)          $ 428     
 

 

 

    

 

 

 

Net cash used in operating activites

    (471)          428     
 

 

 

    

 

 

 

Cash flows from investing activites:

 

    
 

 

 

    

 

 

 

Net cash (used in) provided by investing activites

    -           -     
 

 

 

    

 

 

 

Cash flows from financing activites:

    

Net cash (used in) provided by financing activites

    -           -     
 

 

 

    

 

 

 

Net increase (decrease) in cash

    (471)          428     

Cash beginning of period

    23,337           22,909     
 

 

 

    

 

 

 

Cash end of period

    $ 22,866           $ 23,337     
 

 

 

    

 

 

 


Dendreon Operations BV

Statement of Cash Flows

(Unaudited)

 

      For the 6 Months  
Ending June 30,
2014
     For the Year
  Ending Dec 31,  
2013
 
    $ (dollars)      $ (dollars)  

Cash flows from operating activities:

    

Net income (loss)

    $ (474)          $ 436     
 

 

 

    

 

 

 

 

Net cash used in operating activites

 

 

  $

 

(474) 

 

  

  

 

  $

 

436  

 

  

 

 

 

    

 

 

 

Cash flows from investing activites:

 

    
 

 

 

    

 

 

 

Net cash (used in) provided by investing activites

    -               -         
 

 

 

    

 

 

 

Cash flows from financing activites:

    

Net cash (used in) provided by financing activites

    $ -               $ -         
 

 

 

    

 

 

 

Net decrease in cash

    $ (474)          $ 436     

Cash beginning of period

    23,533           23,097     
 

 

 

    

 

 

 

Cash end of period

    $ 23,059           $ 23,533     
 

 

 

    

 

 

 


Dendreon Germany GmbH

Statement of Cash Flows

(Unaudited)

 

     For the 6
  Months Ending  
June 30, 2014
       For the Year  
Ending Dec 31,
2013
 
     $  (dollars)      $  (dollars)  

Cash flows from operating activities:

     

Net income (loss)

     $ (688)          $ 790     
  

 

 

    

 

 

 

 

Net cash used in operating activites

  

 

 

 

(688) 

 

  

  

 

 

 

790  

 

  

  

 

 

    

 

 

 

Cash flows from investing activites:

 

     
  

 

 

    

 

 

 

Net cash (used in) provided by investing activites

     -               -         
  

 

 

    

 

 

 

Cash flows from financing activites:

     

Net cash (used in) provided by financing activites

     -               -         
  

 

 

    

 

 

 

Net decrease in cash

     (688)          790     

Cash beginning of period

     32,611           31,821     
  

 

 

    

 

 

 

Cash end of period

     $ 31,923           $ 32,611     
  

 

 

    

 

 

 


Dendreon Holdings BV

Statement of Changes in Owner’s Equity

(Unaudited)

     $ (dollars)  
     Owner’s
Investment
     Subsidiaries
Investment
     Accumulated
Deficit
     AOCI     

Owner’s

Equity

 

Balance, December 31, 2011

     $ 25,708          $ 61,767          $ (449)          $ (2,364)          $ 84,662     

Net loss

     -              -              (416)             (416)    

Other comprehensive income

              430           430     
              
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance, December 31, 2012

     $ 25,708          $ 61,767          $ (865)          $ (1,934)          $ 84,676     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net loss

     -              -              (612)             (612)    

Other comprehensive income

              1,040           1,040     
              
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance, December 31, 2013

     $ 25,708          $ 61,767          $ (1,477)          $ (894)          $ 85,104     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net loss

                     (218)             (218)    

Other comprehensive loss

              (253)          (253)    
              
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance, June 30, 2014

     $             25,708          $             61,767          $             (1,695)          $             (1,147)          $             84,633     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 


Dendreon Operations BV

Statement of Changes in Owner’s Equity

(Unaudited)

     $ (dollars)  
     Owner’s
Investment
     Accumulated
Deficit
     AOCI      Owner’s
Equity
 

Balance, December 31, 2011

     $ 25,904           $ (34)           $ (2,580)           $ 23,290      

Net loss

        (629)              (629)     

Other comprehensive income

           436            436      
           
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance, December 31, 2012

     $ 25,904           $ (663)           $ (2,144)           $ 23,097      
  

 

 

    

 

 

    

 

 

    

 

 

 

Net loss

     -               (612)              (612)     

Other comprehensive income

           1,048            1,048      
           
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance, December 31, 2013

     $ 25,904           $ (1,275)           $ (1,096)           $ 23,533      
  

 

 

    

 

 

 

Net loss

     -               (218)              (218)     

Other comprehensive loss

           (256)           (256)     
           
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance, June 30, 2014

     $               25,904           $           (1,493)           $           (1,352)           $               23,059      
  

 

 

    

 

 

    

 

 

    

 

 

 


Dendreon Germany GmbH

Statement of Changes in Owner’s Equity

(Unaudited)

     $ (dollars)  
     Owner’s
Investment
     Accumulated
Deficit
     AOCI     

Owner’s

Equity

 

Balance, December 31, 2011

     $ 35,863           $ (561)           $ (3,443)           $ 31,858      

Net loss

        $ (628)              $ (628)     

Other comprehensive income

           $ 591            $ 591      
           
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance, December 31, 2012

     $ 35,863           $ (1,189)           $ (2,852)           $ 31,821      
  

 

 

    

 

 

    

 

 

    

 

 

 

Net loss

     -               (645)              (645)     

Other comprehensive income

           1,435            1,435      
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance, December 31, 2013

     $ 35,863           $ (1,834)           $ (1,417)           $ 32,611      
  

 

 

    

 

 

 

Net loss

        (334)              (334)     

Other comprehensive loss

           $ (354)           (354)     
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance, June 30, 2014

     $               35,863           $           (2,168)           $           (1,771)           $               31,923      
  

 

 

    

 

 

    

 

 

    

 

 

 


EXHIBIT C


Dendreon Corporation

Exhibit C - Description of Operations

Foreign Subsidiaries:

Dendreon Holdings B.V.

Dendreon Operations B.V.

Dendreon Germany GmbH

Dendreon UK Limited

The Foreign Subsidiaries are 100% owned and controlled by Dendreon Corporation and were formed for the eventual manufacture, distribution and sale of PROVENGE in the E.U. as part of an overall E.U. expansion plan. The E.U. expansion is currently in its early stages and as of 6/30/14 there was no commercial production or delivery of PROVENGE in the E.U.