Item 5. Other Events.
Attached hereto as Exhibit A is a copy of the Registrant's
monthly operating report dated July 24, 1995 (the "Monthly
Operating Report"), to the United States Bankruptcy Court Trustee
for the District of Massachusetts, Western Division, relating to
the Registrant's petition under Chapter 11 of the United States
Bankruptcy Code, Case No. 94-43054-JFQ.
The Monthly Operating Report has not been audited by the
Registrant's independent, certified public accountants, nor does
the Monthly Operating Report contain complete consolidated
information relating to the Company's subsidiaries and affiliates
or adjustments which may be required as a result of an independent
audit of the Registrant's financial statements, including
adjustments relating to the special investigation described in the
Company's reports on Form 8-K filed with the Securities and
Exchange Commission on April 6, 1994 and May 13, 1994,
respectively.
Item 7. Exhibits.
The Registrant's Monthly Operating Report dated July 24, 1995
filed with the United States Bankruptcy Court Trustee for the
District of Massachusetts, Western Division, Case No. 94-43054-JFQ.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
behalf by the undersigned thereunto duly authorized.
CAMBRIDGE BIOTECH CORPORATION
Dated: July 28, 1995 By: \s\ Alison Taunton-Rigby
Alison Taunton-Rigby, President
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF MASSACHUSETTS
IN RE: CAMBRIDGE BIOTECH CORPORATION CASE NO.: 94-43054-JFQ
365 PLANTATION STREET JUDGE: J.F. QUEENAN
WORCESTER, MA 01605-2376
DEBTOR(S): CAMBRIDGE BIOTECH CORPORATION, CHAPTER: 11
DEBTOR-IN-POSSESSION
MONTHLY OPERATING REPORT FOR MONTH ENDING: JUNE 30, 1995
COMES NOW, CAMBRIDGE BIOTECH CORPORATION
Debtor-in-Possession, and hereby submits its Monthly Operating
Report for the period commencing June 1, 1995 and ending June 30,
1995 as shown by the report and exhibits consisting of twenty pages
and containing the following, as indicated:
____X____ Monthly Reporting Questionnaire (Attachment 1)
____X____ Comparative Balance Sheets (Forms OPR-1 & OPR-2)
____X____ Summary of Accounts Receivable (Form OPR-3)
____X____ Schedule of Post-petition Liabilities (Form OPR-4)
____X____ Income Statement (Form OPR-5)
____X____ Statement of Sources and Uses of Cash (Form OPR-6)
I declare under penalty of perjury that this report and all attachments
are true and correct to the best of my knowledge and belief.
Date: July 24, 1995 DEBTOR(S)-IN-POSSESSION
By: /s/ Alison Taunton-Rigby
Name & Title: Alison Taunton-Rigby
President & CEO
Address: 365 Plantation Street
Worcester, MA 01605-2376
Telephone No.:508-797-5777
Footnote:
As Debtor-in-Possession commenced filing on July 7, 1994
___________________________________________________________________________
Attachment 1 (Page 1)
Rev. 1/92
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
Case Name: CAMBRIDGE BIOTECH CORPORATION
Case Number: 94-43054
Month of: JUNE 1, 1995 THROUGH JUNE 30, 1995
1. Payroll: State the amount of all executive wages paid and taxes
withheld and paid.
see attached
2. Insurance: Is worker's compensation and other insurance in effect? YES.
Are payments current? YES. If any policy has lapsed, been
replaced or renewed, state so in the schedule below. Attach
a copy of the new policy's binder or cover page.
Date
Coverage
Carrier Coverage Expir. Premium Pd.
Name Amount Policy # Date Amounts Thru
Homeowners
Rental
Property
Liability
Vehicle
Workers Comp
GA The Travelers 500,000 6H-VB-409K 6/4/96 $1,171 6/4/96
187-6-95
Workers Comp
TX,FL,& CO CNA/Continental 500,000 11W881330 6/4/96 $1,508 6/4/96
195F
Other
___________________________________________________________________________
NCCI COMPANY NUMBER - 15113
CO.CODE 11
POLICY NUMBER 11W 881 3301 95F
Policy
Issued By THE CONTINENTAL INSURANCE COMPANY
A Stock company
Producer's
Name WILLIAM GALLAGHER ASSOC. INS. AGC
and 200 STATE ST.
Address BOSTON
Producer's Code 20079166
Renewal of 13W 882 8657 94F
WORKER'S COMPENSATION AND EMPLOYERS
LIABILITY INSURANCE POLICY INFORMATION PAGE
The insured is a corporation
ITEM 1. CAMBRIDGE BIOTECH CORPORATION
Name of 365 PLANTATION STREET
Insured WORCESTER
and
Address
Other workplaces not shown above See item 4
Audit period for this policy at expiration
Billing plan agency bill - annually
ITEM 2. AUDIT PERIOD
POLICY FROM 12:01 A.M., 06/04/95 TO 06/04/96 FOR THIS POLICY AT EXPIRATION
PERIOD:
12:01 A.M., Standard Time at the
Insured's mailing address
ITEM 3. A. Worker's Compensation Insurance: Part One of the policy
applies to Workers Compensation Law of the states
listed here:
SEE ITEM 4 BELOW
B. Employers Liability Insurance: Part Two of the policy
applies to work in each state listed in Item 3A.
The limits of our liability under Part Two are:
Bodily Injury by Accident $ 500,000 each accident
Bodily Injury by Disease $ 500,000 policy limit
Bodily Injury by Disease $ 500,000 each employee
C. Other States Insurance: Part Three of the policy applies
to the states, if any, listed here:
ALL STATES EXCEPT NEVADA, N. DAKOTA, OHIO, WASHINGTON,
W. VIRGINIA, MAINE,
WYOMING, AND STATES DESIGNATED IN ITEM 3A OF THE
INFORMATION PAGE.
D This policy includes these endorsements and schedules:
001-WC000403
ITEM 4. The premium for this policy will be determined by our Manual
of Rules, Classifications, Rates and Rating Plans.
All information required below is subject to verification
and change by audit.
LOCATION PREMIUM BASIS
SUPPLY CLASSIFICATIONS CODE TOTAL RATE ESTIMATED
NUMBER ESTIMATED ANNUAL PER $100 OF ANNUAL
REMUNERATION REMUNERATION PREMIUM
05-COLORADO 279
09-FLORIDA 606
42-TEXAS 623
TOTAL TAXES 0.00
EXPENSE CONSTANT COLLECTED IN:
42-Texas
Total Estimated Standard Premium $ 1308
Expense Constant
27D 1508 TOTAL ESTIMATED ANNUAL PREMIUM $ 1508
SERVICING OFFICE: 333 GLEN STREET GLENS FALLS NY 12881
THIS INFORMATION PAGE SHALL NOT BE BINDING UPON THE COMPANY UNLESS
COUNTERSIGNED BY A DULY AUTHORIZED REPRESENTATIVE OF THE COMPANY
LIAB 85718 WC 00 00 01A Countersigned by___________________
INSURED COPY WILLIAM GALLAGHER ASSOCIATES
- ---------------------------------------------------------------------------
THE TRAVELERS WORKERS COMPENSATION
AND
EMPLOYERS LIABILITY POLICY
The Travelers Insurance Companies
(Each A Stock Insurance Company)
Hartford, CT 06183-4O40
TYPE AR INFORMATION PAGE WC 00 00 01 (A)
POLICY NUMBER (6H-UB-409K187-6-95)
RENEWAL OF (6H-UB-409K187-6-95)
INSURER: THE TRAVELERS INDEMNITY COMPANY OF AMERICA
NCCI CO CODE: 13439
1. INSURED: PRODUCER:
CAMBRIDGE BIO-TECH CORPORATION WILLIAM GALLAGHER ASSOC
365 PLANTATION STREET 200 STATE ST, 13TH FL
WORCESTER MA 01605 BOSTON MA 02109
Insured is A CORPORATION
Other work) places and identification numbers are shown on the
schedule(s) attached.
2. The policy period is from 06-04-95 to 06-04-96 12:01 A.M.
at the Insured's mailing address.
3. A. WORKERS COMPENSATION INSURANCE: Part One of the policy applies to
the Workers Compensation Law of the state(s) listed here:
GA
B. EMPLOYERS LIABILITY INSURANCE: Part Two of the policy applies
to work in each state listed in item 3.A. The limits of our
liability under
Part Two are:
Bodily Injury by Accident: $500,000 Each Accident
Bodily Injury by Disease: $500,000 Policy Limit
Bodily Injury by Disease: $500,000 Each Employee
C. OTHER STATES INSURANCE: Part Three of the policy applies to the
states, if any, listed here:
COVERAGE EXCLUDED.
D. This policy includes these endorsements and schedules:
WC000414(00)-001 WC100601(A)-001
4. The premium for this policy will be determined by our Manuals of Rules,
Classifications, Rates and Rating Plans. All required information is
subject to verification and change by audit to be made ANNUALLY.
DATE OF ISSUE: 06-06-95 EB ST ASSIGN: GA
OFFICE: ORIND 870 DISTRICT: C-09
PRODUCER: WILLIAM GALLAGHER ASSOC 28TGC
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054 SCHEDULE #1
Month of:
June, 1995
Monthly Operating Report - Wages - Executives
June 1 thru June 30, 1995
Taxes Taxes Taxes
Name Title Gross Net Withheld Paid Due
A.Taunton-Rigby Pres./CEO 17,307.69 9,640.18 7,667.51 7,667.51 0.00
Jeffrey Beaver Chairman 7,692.32 4,450.24 3,242.08 3,242.08 0.00
Gary Long V.P.Corp. Ops 9,615.40 6,754.43 2,860.97 2,860.97 0.00
Keith Jones Corp.Contr. 5,923.07 4,420.53 1,502.54 1,502.54 0.00
--------- --------- --------- --------- ----
Total Executive Payroll: 40,538.48 25,265.38 15,273.10 15,273.10 0.00
____________________________________________________________________________
Attachment 1 (Page 2)
Rev. 1/92
CHAPTER 11
MONTHLY OPERATING REPORT
DETAILED LISTING OF DISBURSEMENTS
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054
Month of: June 1, 1995 through June 30, 1995
3. Bank Accounts
ACCOUNT TYPE
OPERATING OPERATING PAYROLL PAYROLL
Bank Fleet First Nat'l Bank of Flagship
Name BOM Balt
G/L number 1.1113 2.1129 2.1124.1 1.1119.1
Account number 9372562275 175-8828-5 39-12388 1023381112
Beginning Book
Balance $28,340.21 $600.56 $ 5,271.02 $17,326.45
PLUS: Deposits 1,828,238.15
LESS:Disbursements (1,342,749.49) (2,979.35) (536,639.51)
Other:
Transfers In(Out) (578,200.76) 2,700.00 535,007.04
Investments 74,850.00
------------ -------- ---------- ----------
Ending Book
Balance (1) $10,478.11 $321.21 $ 5,271.02 $15,693.98
========== ======= ========== ==========
____________________________________________________________________________
Attachment 1 (Page 2)
Rev 1/92
CHAPTER 11
MONTHLY OPERATING REPORT
DETAILED LISTING OF DISBURSEMENTS
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054
Month of: June 1, 1995 through June 30, 1995
3. Bank Accounts
ACCOUNT TYPE
OPERATING PETTY CASH TOTAL
Bank Name Nations Bank N/A
G/L number 2.1127 xx.1150
Account number 3933333731 N/A
Beginning Book
Balance $5,209.77 $1,151.65 $ 57,899.66
PLUS: Deposits 1,828,238.15
LESS: Disbursements (39,103.11) ( 1,439.61) (1,922,911.07)
Other:
Transfers In(Out) 39,145.37 1,348.35 0.00
Investments 74,850.00
--------- ----------- -----------
Ending Book
Balance (1) $ 5,252.03 $1,060.39 $38,076.74
========= ========= ==========
(1) Cash balances exclude $5,976,957 of short term investments of excess
cash. The total cash and short term investments decreased for the
month of June by $94,673 and increased since the 7/7/94 filing date
by $3,405,294.
_____________________________________________________________________________
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054
As of: June 30, 1995
Monthly Operating Report
4. Post Petition Payments:
Amount Date Check #
Professionals:
Bowditch & Dewey $18,185.56 6/06/95 70025
Bowditch & Dewey 22,446.16 6/29/95 70482
Bromberg & Sunstein 59.35 6/29/95 70483
Hale & Dorr 6,501.31 6/02/95 69967
Sterne, Kessler, Goldstein 48,735.88 6/15/95 70204
Sterne, Kessler, Goldstein 40,429.14 6/27/95 70431
Venable, Baetjer & Howard 242.63 6/23/95 70379
Venable, Baetjer & Howard 2,635.95 6/29/95 70507
----------
Total (Professionals) $139,235.98
==========
Pre-Petition Debts:
For Priority Debt:
Accrued Vacation Taken $1,365.40 various
--------
1,365.40
For Secured Debt:
Norwest Capital Lease Payment (2.3505) 375.22 6/15/95 70191
-------
375.22
For Unsecured Debt:
Accrued Vacation Taken 334.60 various
-------
334.60
For Accrued Restructuring:
Total Mgmt Solutions 340.00 6/21/95 70332
Rockville Retention Bonus Payments(TMS) 4,500.00 6/30/95 wire transfer
4,840.00
---------
Total (Pre-petition) $ 6,915.22
========
_____________________________________________________________________________
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054
Form OPR-1
Comparative Balance Sheets
As of: June 30, 1995
FILING
DATE 7/31/94 8/31/94 9/30/94
ASSETS
CURRENT ASSETS:
Cash $1,287,187 $771,969 $863,230 $744,627
Other Negotiable
Instruments (CD's,
Treasury bills, etc. 1,322,553 2,925,553 3,235,553 2,001,807
Accounts Receivable
(See OPR-3) 2,813,217 2,798,473 2,426,792 3,072,351
Less: Allowance for
doubtful accounts (159,413) (153,957) (156,702) (156,702)
Inventory, at lower
of cost or market 4,619,236 4,575,836 4,436,073 3,837,729
Prepaid Expenses and
Deposits 540,318 758,112 724,877 917,900
Other Receivables 38,793 68,301 19,737 81,504
TOTAL CURRENT ASSETS 10,461,891 11,744,287 11,549,560 10,499,216
PROPERTY, PLANT AND
EQUIPMENT, AT COST 27,437,762 27,440,087 27,443,284 27,400,776
Less: Accumulated
Depreciation (13,006,471)(13,250,916) (13,518,839)(13,794,569)
NET PROPERTY, PLANT ---------- ---------- ---------- ----------
& EQUIP. 14,431,291 14,189,171 13,924,445 13,606,207
OTHER ASSETS
Investment in Foreign
Subsidiary & Interco
Receivables 7,302,195 7,225,880 7,333,273 7,320,217
Equity Investments in
Minority Interests 2,698,719 2,698,719 2,698,719 2,448,719
Long term Notes
Receivable 120,000 120,000 120,000 120,000
Patents & Purchased
Technology, net 4,335,293 4,278,428 4,208,789 4,139,151
Misc. other assets 83,666 83,543 85,921 103,250
NET OTHER ASSETS 14,539,873 14,406,570 14,446,702 14,131,337
---------- ---------- ---------- ----------
TOTAL ASSETS $39,433,055 $40,340,028 $39,920,707 $38,236,760
See Accompanying Notes to Financial Statements
________________________________________________________________________________
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054
Form OPR-1
Comparative Balance Sheets
As of: June 30, 1995
10/31/94 11/30/94 12/31/94 1/31/95
ASSETS
CURRENT ASSETS:
Cash $121,108 $1,978,464 $41,017 $70,469
Other Negotiable
Instruments (CD's,
Treasury bills, etc. 2,744,989 6,518,489 8,396,774 8,171,774
Accounts Receivable
(See OPR-3) 2,456,055 2,020,214 2,676,067 2,366,192
Less: Allowance for
doubtful accounts (154,965) (154,988) (150,200) (150,754)
Inventory, at lower
of cost or market 3,992,196 4,161,087 3,623,742 3,724,804
Prepaid Expenses and
Deposits 843,827 1,049,251 836,285 857,048
Other Receivables 112,983 65,389 92,624 78,022
TOTAL CURRENT ASSETS 10,116,193 15,637,906 15,516,309 15,117,555
PROPERTY, PLANT AND
EQUIPMENT, AT COST 27,395,379 27,392,289 27,361,463 27,367,498
Less: Accumulated
Depreciation (14,056,613) (14,318,428)(14,526,151) (14,773,133)
NET PROPERTY, PLANT ---------- ---------- ---------- ----------
& EQUIP. 13,338,766 13,073,861 12,835,312 12,594,365
OTHER ASSETS
Investment in Foreign
Subsidiary & Interco
Receivables 7,319,514 1,100 1,100 1,100
Equity Investments in
Minority Interests 2,448,719 2,393,118 2,084,547 2,084,547
Long term Notes
Receivable 120,000 120,000 0 0
Patents & Purchased
Technology, net 4,089,540 4,017,654 4,057,044 3,996,889
Misc. other assets 110,888 72,832 105,791 105,668
NET OTHER ASSETS 14,088,661 6,604,704 6,248,482 6,188,204
---------- ---------- ---------- ----------
TOTAL ASSETS $37,543,620 $35,316,471 $34,600,103 $33,900,124
See Accompanying Notes to Financial Statements
________________________________________________________________________________
Comparative Balance Sheets
As of: June 30, 1995
2/28/95 3/31/95 4/30/95
ASSETS
CURRENT ASSETS:
Cash ($155,657) $114,214 $73,689
Other Negotiable Instruments
(i.e., Commercial Paper, CD's 8,159,683 6,479,683 6,162,566
Repo's, etc.)
Accounts Receivable (See OPR-3) 2,489,859 2,902,506 2,792,862
Less: Allowance for doubtful accounts (151,583) (148,773) (155,829)
Inventory, at lower of cost or market 3,567,739 3,624,245 3,711,567
Prepaid Expenses and Deposits 931,831 1,198,892 1,229,568
Other Receivables 60,615 61,603 64,693
TOTAL CURRENT ASSETS 14,902,487 14,232,370 13,879,116
PROPERTY, PLANT AND
EQUIPMENT, AT COST 27,379,288 27,480,169 27,479,539
Less: Accumulated Depreciation (15,008,591) (15,241,885)(15,471,782)
NET PROPERTY, PLANT & EQUIP. 12,370,697 12,238,284 12,007,757
OTHER ASSETS
Investment in Foreign
Subsidiary & Interco.
Receivables 1,100 1,100 1,100
Equity Investments in
Minority Interests 2,084,547 2,084,547 2,084,547
Long term Notes Receivable 0 0 0
Patents & Purchased Technology, net 3,943,189 3,900,274 3,854,572
Misc. other assets 105,546 105,423 105,301
NET OTHER ASSETS 6,134,382 6,091,344 6,045,520
---------- ---------- ----------
TOTAL ASSETS $33,407,566 $32,561,998 $31,932,393
See Accompanying Notes to Financial Statements
- -------------------------------------------------------------------
Comparative Balance Sheets
As of: June 30, 1995
ASSETS 5/31/95 6/30/95
CURRENT ASSETS:
Cash $57,900 $38,077
Other Negotiable Instruments
(i.e, Commercial Paper, CD's
Repo's, etc. 6,051,807 5,976,957
Accounts Receivable (See OPR-3) 2,804,766 3,122,119
Less: Allowance for doubtful accounts (159,019) (166,019)
Inventory, at lower of cost or market 3,578,844 3,561,616
Prepaid Expenses and Deposits 1,261,826 1,234,929
Other Receivables 62,896 55,077
TOTAL CURRENT ASSETS 13,659,020 13,822,756
PROPERTY, PLANT AND
EQUIPMENT, AT COST 27,498,276 27,488,294
Less: Accumulated Depreciation (15,699,736) (15,899,373)
NET PROPERTY, PLANT & EQUIP. 11,798,540 11,588,921
OTHER ASSETS
Investment in Foreign
Subsidiary & Interco.
Receivables 1,100 1,100
Equity Investments in
Minority Interests 2,084,547 2,084,547
Long term Notes Receivable 0 0
Patents & Purchased Technology, net 3,812,181 3,847,391
Misc. other assets 105,179 105,056
NET OTHER ASSETS 6,003,007 6,038,094
---------- ---------
TOTAL ASSETS $31,460,567 $31,449,771
See Accompanying Notes to Financial Statements
_________________________________________________________________________
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054
Form OPR-2
Comparative Balance Sheets
As of: June 30, 1995
FILING
DATE 7/31/94 8/31/94 9/30/94
LIABILITIES
POSTPETITION LIABILITIES (OPR-4) $0 $650,373 $1,141,051 $1,497,470
PREPETITION LIABILITIES
Priority Debt 223,302 182,012 182,012 68,035
Secured Debt 5,034,218 5,033,952 5,033,605 4,026,027
Unsecured Debt 5,693,250 5,694,993 5,694,993 5,725,313
TOTAL PRE PETITION ---------- ---------- ---------- ---------
LIABILITIES 10,950,770 10,910,957 10,910,610 9,819,375
Accrued Restructuring 1,844,180 1,842,293 1,838,952 1,838,649
Deferred Revenue & Taxes 2,735,700 2,729,262 2,705,941 2,663,591
---------- ---------- ---------- ----------
TOTAL LIABILITIES 15,530,650 16,132,885 16,596,554 15,819,085
SHAREHOLDERS' EQUITY (DEFICIT)
PREFERRED STOCK 0 0 0 0
COMMON STOCK 260,570 260,570 260,570 260,570
PAID - IN CAPITAL 119,978,714 119,985,005 119,993,131 120,001,257
ACCUMULATED DEFICIT;
Through Filing Date (96,336,879)(96,336,879)(96,336,879)(96,336,879)
Post Filing Date - 1994 298,447 (592,669) (1,507,273)
Post Filing Date - 1995
TOTAL ACCUMULATED DEFICIT (96,336,879)(96,038,432)(96,929,548)(97,844,152)
---------- ---------- ---------- ----------
TOTAL SHAREHOLDERS' EQUITY 23,902,405 24,207,143 23,324,153 22,417,675
TOTAL LIABILITIES AND ---------- ---------- ---------- ----------
SHAREHOLDERS' EQUITY $39,433,055 $40,340,028 $39,920,707 $38,236,760
See Accompanying Notes to Financial Statements.
______________________________________________________________________________
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054
Form OPR-2
Comparative Balance Sheets
As of: June 30, 1995
10/31/94 11/30/94 12/31/94
LIABILITIES
POSTPETITION LIABILITIES (OPR-4) $2,082,362 $2,755,184 $3,094,624
PREPETITION LIABILITIES
Priority Debt 68,035 67,035 41,405
Secured Debt 4,025,674 4,025,320 4,024,962
Unsecured Debt 5,727,217 5,724,724 5,698,205
TOTAL PRE PETITION --------- --------- ---------
LIABILITIES 9,820,926 9,817,079 9,764,572
Accrued Restructuring 1,818,204 1,818,204 1,818,204
Deferred Revenue & Taxes 2,709,561 6,200,904 6,222,574
---------- ---------- ----------
TOTAL LIABILITIES 16,431,053 20,591,371 20,899,974
SHAREHOLDERS' EQUITY (DEFICIT)
PREFERRED STOCK 0 0 0
COMMON STOCK 260,570 260,570 260,570
PAID - IN CAPITAL 120,009,383 120,017,509 120,025,635
ACCUMULATED DEFICIT;
Through Filing Date (96,336,879) (96,336,879) (96,336,879)
Post Filing Date - 1994 (2,820,507) (9,216,100) (10,249,197)
Post Filing Date - 1995
TOTAL ACCUMULATED DEFICIT (99,157,386)(105,552,979)(106,586,076)
---------- ---------- ----------
TOTAL SHAREHOLDERS' EQUITY 21,112,567 14,725,100 13,700,129
TOTAL LIABILITIES AND ---------- ---------- ----------
SHAREHOLDERS' EQUITY $37,543,620 $35,316,471 $34,600,103
See Accompanying Notes to Financial Statements.
____________________________________________________________________________
Comparative Balance Sheets
As of: June 30, 1995
1/31/95 2/28/95 3/31/95
LIABILITIES
POST PETITION LIABILITIES (OPR-4) $3,486,705 $3,792,060 $4,029,423
PRE PETITION LIABILITIES
Priority Debt 41,405 41,405 37,685
Secured Debt 4,024,601 4,024,238 4,023,871
Unsecured Debt 5,657,221 5,663,260 5,659,724
TOTAL PRE PETITION LIABILITIES 9,723,227 9,728,903 9,721,280
Accrued Restructuring 1,818,204 1,814,597 1,811,938
Deferred Revenue & Taxes 5,915,588 5,522,460 5,150,121
---------- ---------- ----------
TOTAL LIABILITIES 20,943,724 20,858,020 20,712,762
SHAREHOLDERS' EQUITY (DEFICIT)
PREFERRED STOCK 0 0 0
COMMON STOCK 260,570 260,570 260,570
PAID - IN CAPITAL 120,033,760 120,041,887 120,050,013
ACCUMULATED DEFICIT;
Through Filing Date (96,336,879) (96,336,879) (96,336,879)
Post Filing Date - 1994 (10,249,197) (10,249,197) (10,249,197)
Post Filing Date - 1995 (751,854) (1,166,835) (1,875,271)
TOTAL ACCUMULATED DEFICIT (107,337,930)(107,752,911)(108,461,347)
---------- ---------- ----------
TOTAL SHAREHOLDERS' EQUITY 12,956,400 12,549,546 11,849,236
TOTAL LIABILITIES AND ---------- ---------- ----------
SHAREHOLDERS' EQUITY $33,900,124 $33,407,566 $32,561,998
See Accompanying Notes to Financial Statements.
____________________________________________________________________________
Comparative Balance Sheets
As of: June 30, 1995
4/30/95 5/31/95 6/30/95
LIABILITIES
POST PETITION LIABILITIES (OPR-4) $4,138,912 $4,438,839 $4,952,436
PRE PETITION LIABILITIES
Priority Debt 36,319 36,319 34,954
Secured Debt 4,023,502 4,023,129 4,022,754
Unsecured Debt 5,644,925 5,644,925 5,650,781
TOTAL PRE PETITION LIABILITIES 9,704,746 9,704,373 9,708,489
Accrued Restructuring 1,810,963 1,810,963 1,806,123
Deferred Revenue & Taxes 4,831,300 4,513,854 4,183,273
TOTAL LIABILITIES 20,485,921 20,468,029 20,650,321
SHAREHOLDERS' EQUITY (DEFICIT)
PREFERRED STOCK 0 0 0
COMMON STOCK 260,570 260,570 260,570
PAID - IN CAPITAL 120,058,139 120,066,265 120,074,391
ACCUMULATED DEFICIT;
Through Filing Date (96,336,879) (96,336,879) (96,336,879)
Post Filing Date - 1994 (10,249,197) (10,249,197) (10,249,197)
Post Filing Date - 1995 (2,286,161) (2,748,221) (2,949,435)
TOTAL ACCUMULATED DEFICIT (108,872,237)(109,334,297)(109,535,511)
---------- ---------- ----------
TOTAL SHAREHOLDERS' EQUITY 11,446,472 10,992,538 10,799,450
TOTAL LIABILITIES AND ---------- ---------- ----------
SHAREHOLDERS' EQUITY $31,932,393 $31,460,567 $31,449,771
See Accompanying Notes to Financial Statements.
____________________________________________________________________________
Case Name: Cambridge Biotech Corporation Form: OPR-3
Case Number: 94-43054
Summary of Accounts Receivable
As of: June 30, 1995
0 - 30 31 - 60
TOTAL DAYS DAYS
----------- ---------- ------------
Date of Filing:July 7, 1994 2,813,216.84 2,110,219.71 452,069.57
Allowance for doubtful accts (159,413.23)
Net 2,653,803.61 2,110,219.71 452,069.57
Month: July 31, 1994 2,798,472.98 1,289,104.11 1,238,841.68
Allowance for doubtful accts (153,956.56)
Net 2,644,516.42 1,289,104.11 1,238,841.68
Month: August 31, 1994 2,426,792.24 1,669,036.84 267,054.03
Allowance for doubtful accts (156,701.89)
Net 2,270,090.35 1,669,036.84 267,054.03
Month: Sept. 30, 1994 3,072,351.16 2,402,728.52 365,353.30
Allowance for doubtful accts (156,701.89)
Net 2,915,649.27 2,402,728.52 365,353.30
Month: October 31, 1994 2,456,054.54 1,406,348.28 750,784.77
Allowance for doubtful accts (154,964.89)
Net 2,301,089.65 1,406,348.28 750,784.77
Month: Nov. 30, 1994 2,020,214.59 1,322,881.77 350,696.71
Allowance for doubtful accts (154,988.00)
Net 1,865,226.59 1,322,881.77 350,696.71
Month: Dec. 31, 1994 2,676,067.46 2,057,744.50 389,515.89
Allowance for doubtful accts (150,200.00)
Net 2,525,867.46 2,057,744.50 389,515.89
Month: January 31, 1995 2,366,192.41 1,487,741.56 623,509.89
Allowance for doubtful accts (150,753.71)
Net 2,215,438.70 1,487,741.56 623,509.89
Month: Feb. 28, 1995 2,489,858.82 1,972,020.47 187,953.54
Allowance for doubtful accts (151,582.78)
Net 2,338,276.04 1,972,020.47 187,953.54
Month: March 31, 1995 2,902,506.56 2,061,722.33 671,660.83
Allowance for doubtful accts (148,773.14)
Net 2,753,733.42 2,061,722.33 671,660.83
Month: April 30, 1995 2,792,861.76 1,660,592.76 931,787.86
Allowance for doubtful accts (155,829.15)
Net 2,637,032.61 1,660,592.76 931,787.86
Month: May 31, 1995 2,804,766.36 2,153,951.07 257,035.14
Allowance for doubtful accts (159,019.25)
Net 2,645,747.11 2,153,951.07 257,035.14
Month: June 30, 1995 3,122,119.25 2,466,775.40 332,562.82
Allowance for doubtful accts (166,019.26)
Net 2,956,099.99 2,466,775.40 332,562.82
_________________________________________________________________________
Case Name: Cambridge Biotech Corporation Form: OPR-3
Case Number: 94-43054
Summary of Accounts Receivable
As of: June 30, 1995
61 - 90 OVER
TOTAL DAYS 90 DAYS
----------- --------- ----------
Date of Filing:July 7, 1994 2,813,216.84 56,398.93 194,528.63
Allowance for doubtful accts (159,413.23) (159,413.23)
Net 2,653,803.61 56,398.93 35,115.40
Month: July 31, 1994 2,798,472.98 128,524.10 142,003.09
Allowance for doubtful accts (153,956.56) (11,953.47) (142,003.09)
Net 2,644,516.42 116,570.63 0.00
Month: August 31, 1994 2,426,792.24 297,637.99 193,063.38
Allowance for doubtful accts (156,701.89) (156,701.89)
Net 2,270,090.35 297,637.99 36,361.49
Month: Sept. 30, 1994 3,072,351.16 77,168.82 227,100.52
Allowance for doubtful accts (156,701.89) (156,701.89)
Net 2,915,649.27 77,168.82 70,398.63
Month: October 31, 1994 2,456,054.54 87,405.93 211,515.56
Allowance for doubtful accts (154,964.89) (154,964.89)
Net 2,301,089.65 87,405.93 56,550.67
Month: Nov. 30, 1994 2,020,214.59 188,381.49 158,254.62
Allowance for doubtful accts (154,988.00) (154,988.00)
Net 1,865,226.59 188,381.49 3,266.62
Month: Dec. 31, 1994 2,676,067.46 65,733.45 163,073.62
Allowance for doubtful accts (150,200.00) (150,200.00)
Net 2,525,867.46 65,733.45 12,873.62
Month: January 31, 1995 2,366,192.41 92,582.75 162,358.21
Allowance for doubtful accts (150,753.71) (150,753.71)
Net 2,215,438.70 92,582.75 11,604.50
Month: Feb. 28, 1995 2,489,858.82 176,471.97 153,412.84
Allowance for doubtful accts (151,582.78) (151,582.78)
Net 2,338,276.04 176,471.97 1,830.06
Month: March 31, 1995 2,902,506.56 45,696.46 123,426.94
Allowance for doubtful accts (148,773.14) (25,346.20) (123,426.94)
Net 2,753,733.42 20,350.26 0.00
Month: April 30, 1995 2,792,861.76 103,220.04 97,261.10
Allowance for doubtful accts (155,829.15) (58,568.05) (97,261.10)
Net 2,637,032.61 44,651.99 0.00
Month: May 31, 1995 2,804,766.36 313,259.39 80,520.76
Allowance for doubtful accts (159,019.25) (78,498.49) (80,520.76)
Net 2,645,747.11 234,760.90 0.00
Month: June 30, 1995 3,122,119.25 52,189.56 270,591.47
Allowance for doubtful accts (166,019.26) (166,019.26)
Net 2,956,099.99 52,189.56 104,572.21
________________________________________________________________________
Case Name: Cambridge Biotech Corporation Form OPR-4
Case Number: 94-43054
Schedule of Post Petition Liabilities
As of: June 30, 1995
DATE DATE TOTAL 0-30 31-60
INCURRED DUE DUE DAYS DAYS
TAXES PAYABLE
Federal Income Taxes W/H 0
FICA-Employer's Share 0
FICA-Employee's Share W/H 0
Unemployment Tax 0
State Income Tax Withheld 0
State Sales & Use Tax Various Various 4,672 4,672
State Franchise Tax Various Various 1,192 1,000 192
Real Estate and
Personal Property Tax Various Various 18,730 6,330 6,200
------ ------ -----
TOTAL TAXES PAYABLE 24,594 12,002 6,392
POST PETITION
SECURED DEBT 0 0
POST PETITION
UNSECURED DEBT 0 0
ACCRUED INTEREST
PAYABLE Various Various 371,149 32,932 39,466
TRADE ACCOUNTS
PAYABLE & OTHER
Accounts Payable Various Various 498,504 451,084 1,337
Accrued Expenses Various Various 2,610,639 787,639 384,000
Accrued Stock
Incentive Plan 7/8/94 Emerge 1,447,550 1,447,550
from
Ch. 11
TOTAL ACCOUNTS --------- --------- -------
PAYABLE & OTHER 4,556,693 2,686,273 385,337
--------- --------- -------
TOTAL POST $4,952,436 $2,731,207 $431,195
PETITION LIABILITIES ========= ========= =======
_______________________________________________________________________________
Case Name: Cambridge Biotech Corporation Form OPR-4
Case Number: 94-43054
Schedule of Post Petition Liabilities
As of: June 30, 1995
DATE DATE TOTAL 61-90 OVER 90
INCURRED DUE DUE DAYS DAYS
TAXES PAYABLE
Federal Income Taxes W/H 0
FICA-Employer's Share 0
FICA-Employee's Share W/H 0
Unemployment Tax 0
State Income Tax Withheld 0
State Sales & Use Tax Various Various 4,672
State Franchise Tax Various Various 1,192
Real Estate and
Personal Property Tax Various Various 18,730 6,200
------ -----
TOTAL TAXES PAYABLE 24,594 6,200
POST PETITION
SECURED DEBT 0 0
POST PETITION
UNSECURED DEBT 0 0
ACCRUED INTEREST
PAYABLE Various Various 371,149 32,932 265,819
TRADE ACCOUNTS
PAYABLE & OTHER
Accounts Payable Various Various 498,504 1,337 44,746
Accrued Expenses Various Various 2,610,639 384,000 1,055,000
Accrued Stock
Incentive Plan 7/8/94 Emerge 1,447,550
from
Ch. 11
TOTAL ACCOUNTS --------- ------- ---------
PAYABLE & OTHER 4,556,693 385,337 1,099,746
--------- ------- ---------
TOTAL POST $4,952,436 $424,469 $1,365,565
PETITION LIABILITIES ========= ======= =========
_____________________________________________________________________________
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054
Form OPR-5
Income Statement
Period: July 8, 1994 - June 30, 1995
7/8-31/94 August September
NET REVENUE (INCOME) $1,990,463 $1,297,330 $2,120,689
COST OF GOODS SOLD
Materials
Labor - Direct
Manufacturing Overhead
TOTAL COST OF GOODS SOLD 677,628 872,453 1,424,705
--------- ------- -------
GROSS PROFIT 1,312,835 424,877 695,984
OPERATING EXPENSES
Selling and Marketing 86,253 117,890 129,345
General and Administrative 330,964 404,625 548,839
Research and Development 223,590 359,735 288,595
Other: Regulatory 18,336 22,767 18,815
Other: Misc. (Income)/Expense (13,655) (8,694) (45,076)
TOTAL OPERATING EXPENSES 645,488 896,323 940,518
INCOME BEFORE INTEREST,
DEPRECIATION, TAXES OR ------- ------- -------
EXTRAORDINARY EXPENSES 667,347 (471,446) (244,534)
CHAPTER 11 EXPENSES (97,310) (113,110) (112,501)
INTEREST EXPENSE (27,145) (38,638) (31,839)
DEPRECIATION (244,445) (267,922) (275,730)
INCOME TAX EXPENSE 0 0 0
EXTRAORDINARY
INCOME(EXPENSE) 0 0 (250,000)
------- ------- -------
NET INCOME (LOSS) $298,447 ($891,116) ($914,604)
See Accompanying Notes to Financial Statements.
_______________________________________________________________________________
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054
Form OPR-5
Income Statement
Period: July 8, 1994 - June 30, 1995
October November December
NET REVENUE (INCOME) $1,089,394 $1,073,137 $1,938,051
COST OF GOODS SOLD
Materials
Labor - Direct
Manufacturing Overhead
TOTAL COST OF GOODS SOLD 781,526 637,644 1,478,841
------- ------- -------
GROSS PROFIT 307,868 435,493 459,210
OPERATING EXPENSES
Selling and Marketing 130,164 137,154 145,399
General and Administrative 503,279 497,797 445,169
Research and Development 526,086 376,756 505,667
Other: Regulatory 41,259 26,668 28,464
Other: Misc. (Income)/Expense 1,583 (28,619) (56,255)
TOTAL OPERATING EXPENSES 1,202,371 1,009,756 1,068,444
INCOME BEFORE INTEREST,
DEPRECIATION, TAXES OR ------- ------- -------
EXTRAORDINARY EXPENSES (894,503) (574,263) (609,234)
CHAPTER 11 EXPENSES (130,808) (105,473) (35,380)
INTEREST EXPENSE (25,880) (34,149) (32,395)
DEPRECIATION (262,043) (261,816) (245,061)
INCOME TAX EXPENSE 0 0 0
EXTRAORDINARY
INCOME(EXPENSE) 0 (5,419,892) (111,027)
--------- --------- ---------
NET INCOME (LOSS) $(1,313,234) $(6,395,593) $(1,033,097)
See Accompanying Notes to Financial Statements.
______________________________________________________________________________
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054
Form OPR-5
Income Statement
Period: July 8, 1994 - June 30, 1995
January 1995 February March
NET REVENUE (INCOME) $1,396,377 $1,881,536 $2,179,703
COST OF GOODS SOLD
Materials
Labor - Direct
Manufacturing Overhead
TOTAL COST OF GOODS SOLD 823,876 987,069 1,062,214
------- ------- ---------
GROSS PROFIT 572,501 894,467 1,117,489
OPERATING EXPENSES
Selling and Marketing 120,148 116,908 168,859
General and Administrative 433,681 451,508 633,552
Research and Development 404,257 395,094 687,899
Other: Regulatory 33,717 31,186 31,888
Other: Misc.
(Income)/Expense (52,814) (44,031) (42,176)
TOTAL OPERATING EXPENSES 938,989 950,665 1,480,022
INCOME BEFORE INTEREST,
DEPRECIATION, TAXES OR ------- ------- -------
EXTRAORDINARY EXPENSES (366,488) (56,198) (362,533)
CHAPTER 11 EXPENSES (106,000) (96,420) (78,629)
INTEREST EXPENSE (32,384) (31,021) (33,980)
DEPRECIATION (246,982) (235,458) (233,294)
INCOME TAX EXPENSE 0 4,116 0
EXTRAORDINARY
INCOME(EXPENSE) 0 0 0
------- ------- -------
NET INCOME (LOSS) ($751,854) ($414,981) ($708,436)
See Accompanying Notes to Financial Statements.
_____________________________________________________________________________
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054
Form OPR-5
Income Statement
Period: July 8, 1994 - June 30, 1995
FILING
April May June TO DATE
NET REVENUE (INCOME) $1,642,292 $2,188,446 $2,338,425 $21,135,843
COST OF GOODS SOLD
Materials
Labor - Direct
Manufacturing Overhead
TOTAL COST OF GOODS SOLD 794,369 1,154,352 1,162,791 11,857,468
------- --------- --------- ----------
GROSS PROFIT 847,923 1,034,094 1,175,634 9,278,375
OPERATING EXPENSES
Selling and Marketing 139,342 152,110 161,741 1,605,313
General and Administrative 395,543 572,129 415,455 5,632,541
Research and Development 392,539 408,496 452,840 5,021,554
Other: Regulatory 17,577 29,652 37,873 338,202
Other: Misc.
(Income)/Expense (48,350) (47,253) (74,391) (459,731)
TOTAL OPERATING EXPENSES 896,651 1,115,134 993,518 12,137,879
INCOME BEFORE INTEREST,
DEPRECIATION, TAXES OR ------ ------ ------- ---------
EXTRAORDINARY EXPENSES (48,728) (81,040) 182,116 (2,859,504)
CHAPTER 11 EXPENSES (99,270) (113,541) (123,086) (1,211,528)
INTEREST EXPENSE (32,995) (39,526) (32,996) (392,948)
DEPRECIATION (229,897) (227,953) (227,248) (2,957,849)
INCOME TAX EXPENSE 0 0 0 4,116
EXTRAORDINARY
INCOME(EXPENSE) 0 0 0 (5,780,919)
------- ------- ------- ----------
NET INCOME (LOSS) ($410,890) ($462,060) $(201,214)($13,198,632)
See Accompanying Notes to Financial Statements.
_____________________________________________________________________________
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054
Form OPR-6
Statement of Sources and Uses of Cash
Period of: July 8, 1994 - June 30, 1995
July 8-
July 31 August September
SOURCES OF CASH
Income (Loss) From Operations $298,447 ($891,116) ($914,604)
Add: Depreciation, Amortization
& Other Non-Cash Items 301,164 322,366 542,532
CASH GENERATED FROM OPERATIONS 599,611 (568,750) (372,072)
Add: Decrease in Assets:
Accounts Receivable 9,288 374,426
Other Receivables 48,564
Inventory 43,400 139,763 598,344
Prepaid Expenses & Deposits 33,235
Property, Plant & Equipment
Patents & Purchased Technology 18,612
Intercompany Receivables 76,315 13,056
Short Term Investments 1,233,746
Proceeds on sale of foreign
subsidiary
Proceeds on sale of minority interest
Proceeds on note receivable
Other non-current assets 123
Increase in Liabilities:
Pre-Petition Liabilities 1,742 52,055
Post-Petition Liabilities 650,372 490,679 356,419
Deferred Revenue
TOTAL SOURCES OF CASH (A) 1,380,851 517,917 1,900,160
USES OF CASH
Increase in Assets:
Accounts Receivable 565,559
Other Receivables 29,508 61,767
Intercompany Receivables 107,393
Inventory
Prepaid Expenses & Deposits 217,794 193,023
Patents & Purchased Technology
Property, Plant & Equipment 2,325 3,197 37,492
Other non-current assets 2,378 17,329
Short Term Investments 1,603,000 310,000
Decrease in Liabilities:
Pre-Petition Liabilities 41,290 135,711
Post-Petition Liabilities
Accrued Restructuring 1,886 3,341 304
Secured Debt and Capital Leases 266 347 1,007,578
TOTAL USES OF CASH (B) 1,896,069 426,656 2,018,763
------- ------- -------
NET SOURCE (USE) OF CASH (A-B=NET) (515,218) 91,261 (118,603)
CASH - BEGINNING BALANCE (See OPR-1) 1,287,187 771,969 863,230
------- ------- -------
CASH - ENDING BALANCE (See OPR-1) $771,969 $863,230 $744,627
See Accompanying Notes to Financial Statements
_____________________________________________________________________________
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054
Form OPR-6
Statement of Sources and Uses of Cash
Period of: July 8, 1994 - June 30, 1995
October November December
SOURCES OF CASH
Income (Loss) From Operations ($1,313,234)($6,395,593) ($1,033,097)
Add: Depreciation, Amortization
& Other Non-Cash Items 695,379 5,591,211 273,411
CASH GENERATED FROM OPERATIONS (617,855) (804,382) (759,686)
Add: Decrease in Assets:
Accounts Receivable 539,309 435,863
Other Receivables 47,594
Inventory 537,345
Prepaid Expenses & Deposits 74,073 212,966
Property, Plant & Equipment 80,647 3,090
Patents & Purchased Technology 18,612
Intercompany Receivables 703
Short Term Investments
Proceeds on sale of foreign
subsidiary 1,982,685
Proceeds on sale of minority interest 308,571
Proceeds on note receivable 120,000
Other non-current assets 38,056
Increase in Liabilities:
Pre-Petition Liabilities 1,904 230,000
Post-Petition Liabilities 168,807 557,512 243,428
Deferred Revenue 88,212 3,528,549 152,057
TOTAL SOURCES OF CASH (A) 335,800 6,037,579 814,681
USES OF CASH
Increase in Assets:
Accounts Receivable 660,641
Other Receivables 31,479 27,235
Intercompany Receivables 28,561
Inventory 154,467 168,891
Prepaid Expenses & Deposits 205,424
Patents & Purchased Technology 1,756 93,988
Property, Plant & Equipment 6,513
Other non-current assets 7,638 32,959
Short Term Investments 743,182 3,773,500 1,878,285
Decrease in Liabilities:
Pre-Petition Liabilities 3,492 52,149
Post-Petition Liabilities
Accrued Restructuring 20,445
Secured Debt and Capital Leases 352 355 358
TOTAL USES OF CASH (B) 959,319 4,180,223 2,752,128
------- --------- ---------
NET SOURCE (USE) OF CASH (A-B=NET) (623,519) 1,857,356 (1,937,447)
CASH - BEGINNING BALANCE (See OPR-1) 744,627 121,108 1,978,464
------- --------- -------
CASH - ENDING BALANCE (See OPR-1) $121,108 $1,978,464 $41,017
See Accompanying Notes to Financial Statements
____________________________________________________________________________
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054
Form OPR-6
Statement of Sources and Uses of Cash
Period of: July 8, 1994 - June 30, 1995
January February March
SOURCES OF CASH
Income (Loss) From
Operations ($751,854) ($414,981) ($708,436)
Add: Depreciation,
Amortization & Other
Non-Cash Items 109,573 25,731 99,891
CASH GENERATED FROM
OPERATIONS (642,281) (389,250) (608,545)
Add: Decrease in Assets:
Accounts Receivable 310,429
Other Receivables 14,602 17,407
Inventory 157,065
Prepaid Expenses &
Deposits
Property, Plant &
Equipment
Patents & Purchased
Technology
Intercompany Receivables
Short Term Investments 225,000 12,091 1,680,000
Proceeds on sale of
foreign subsidiary
Proceeds on sale of
minority interest
Proceeds on note receivable
Other non-current assets
Increase in Liabilities:
Pre-Petition Liabilities 1,923
Post-Petition
Liabilities 290,907 194,519 67,032
Deferred Revenue
TOTAL SOURCES OF CASH (A) 198,657 (6,245) 1,138,487
USES OF CASH
Increase in Assets:
Accounts Receivable 122,838 415,457
Other Receivables 988
Intercompany Receivables
Inventory 101,062 56,506
Prepaid Expenses &
Deposits 20,763 74,783 267,061
Patents & Purchased
Technology 6,500 17,442
Property, Plant &
Equipment 6,035 11,790 100,880
Other non-current assets
Short Term Investments
Decrease in Liabilities:
Pre-Petition Liabilities 40,984 7,256
Post-Petition Liabilities
Accrued Restructuring 3,607 2,659
Secured Debt and
Capital Lease 361 363 367
TOTAL USES OF CASH (B) 169,205 219,881 868,616
NET SOURCE (USE) OF CASH
(A-B=NET) 29,452 (226,126) 269,871
CASH-BEGINNING BALANCE
(See OPR-1) 41,017 70,469 (155,657)
CASH-ENDING BALANCE ------ ------- -------
(See OPR-1) $70,469 ($155,657) $114,214
_____________________________________________________________________________
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054
Form OPR-6
Statement of Sources and Uses of Cash
Period of: July 8, 1994 - June 30, 1995
April May June 7/8/94 to
SOURCES OF CASH 6/30/95
Income (Loss) From
Operations ($410,890) ($462,060) ($201,214) ($13,198,632)
Add: Depreciation,
Amortization & Other
Non-Cash Items 171,744 166,848 79,043 8,378,893
CASH GENERATED FROM
OPERATIONS (239,146) (295,212) (122,171) (4,819,739)
Add: Decrease in Assets:
Accounts Receivable 116,700 1,786,015
Other Receivables 1,797 7,819 137,783
Inventory 132,723 17,228 1,625,868
Prepaid Expenses &
Deposits 26,897 347,171
Property, Plant &
Equipment 630 84,367
Patents & Purchased
Technology 37,224
Intercompany Receivables 90,074
Short Term Investments 317,117 110,759 74,850 3,653,563
Proceeds on sale of
foreign subsidiary 1,982,685
Proceeds on sale of
minority interest 308,571
Proceeds on note receivable 120,000
Other non-current assets 38,179
Increase in Liabilities:
Pre-Petition Liabilities 4,491 292,115
Post-Petition Liabilities 112,840 402,106 3,534,621
Deferred Revenue 3,768,818
TOTAL SOURCES OF CASH (A) 195,301 62,907 411,220 12,987,315
USES OF CASH
Increase in Assets:
Accounts Receivable 8,714 310,353 2,083,562
Other Receivables 3,090 154,067
Intercompany Receivables 135,954
Inventory 87,322 568,248
Prepaid Expenses &
Deposits 30,676 32,257 1,041,781
Patents & Purchased
Technology 14,994 18,615 97,846 251,141
Property, Plant &
Equipment 18,737 17,629 204,598
Other non-current assets 60,304
Short Term Investments 8,307,967
Decrease in Liabilities:
Pre-Petition Liabilities 16,165 297,047
Post-Petition Liabilities 82,235 82,235
Accrued Restructuring 975 4,840 38,057
Secured Debt and
Capital Lease 369 373 375 1,011,464
TOTAL USES OF CASH (B) 235,826 78,696 431,043 14,236,425
NET SOURCE (USE) OF CASH ------ ------ ------ ---------
(A-B=NET) (40,525) (15,789) (19,823) (1,249,110)
CASH-BEGINNING BALANCE
(See OPR-1) 114,214 73,689 57,900 1,287,187
CASH-ENDING BALANCE ------ ------ ------ ------
(See OPR-1) $73,689 $57,900 $38,077 $38,077
====== ====== ====== ======
_____________________________________________________________________________
NOTES TO FINANCIAL STATEMENTS
1. The accompanying financial statements of Cambridge Biotech
Corporation (the Company) are for U.S. Operations only.
2. The Balance Sheet as of July 7, 1994, the date of the
Company's Chapter 11 filing, was restated in December 1994 to
reflect the Company's assets, liabilities, and shareholders'
equity after additional adjustments for subsequent
information. The assets increased by $233,432, liabilities
increased by $197,371, and shareholders' equity increased
by $36,061. The accumulated losses increased by $383.
3. The financial statements presented are unaudited and reflect
management's best judgment. Certain items which could have
an impact on the Company's financial statements are:
a. The Company's monthly inventory valuations and the amount of
reserves reflect management's best judgement. However, the
Company's auditors have not yet completed the December 31st,
1994 year end audit, which when complete, may result in
adjustments to the year end inventory.
b. The Company has an investment in GRF Co. of $2,084,547
which represents a 19% interest in GRF Co. and is
accounted for by the cost method. Since the Company's
Chapter 11 filing, GRF Co. has ceased providing
information to the Company. Recently GRF Co. has agreed
to respond to the Company's requests and has sent some
information. Additional information has been requested.
If the information requested indicates a loss in the
value of the investment, the Company would revise the
carrying value of the investment.
c. The Company's investment in its Irish subsidiary,
Cambridge Biotech Limited (CBL), was adjusted prior to
the Company's Chapter 11 filing to its net tangible
asset value. On November 30, 1994, the Company sold CBL
to SelfCare, Inc. The Company originally reported in
its November financial statements a loss on the
disposition of CBL of $5,134,290. Subsequent to the
issuance of the November report, the loss amount was
increased in December to $5,475,317 as a result of the
inclusion of royalty obligations by the Company for
products sold by CBL utilizing certain licensed
technology. Calculation of the loss on this transaction
was based upon unaudited financial statements which
included estimates of the operating results of CBL through
November 30, 1994. If the estimated amounts or the effective
date of the transaction changes as a result of either the
Company's or CBL's audits, the reported loss on the transaction
could also change.
d. In November 1994, the Company received $3.5 million as a
payment of a license fee originally due in January 1995
which was recorded as deferred revenue. Although the
Company's past practice with respect to this license
agreement was to recognize the entire annual payment as
revenue when due, management feels it is appropriate to
recognize the revenue ratably over 1995 at $291,667 per
month.
4. The Company entered into an agreement with BASF Bioresearch
Corporation for them to manufacture three batches of QS-21
product. The agreement calls for an initial payment of
$175,000 plus milestone payments totaling an additional
$525,000. Included in the March results is the initial
payment of $175,000. The balance of $525,000 is being held
in escrow and is included in Prepaid Expenses and Deposits in
the accompanying balance sheet (Form OPR-1).
5. In September 1992, the Company purchased a 15% interest in
ImmuCell Corporation for $600,000, and had advanced $120,000
to ImmuCell between June 1993 and April 1994. As a result of
negotiations with ImmuCell in September 1994, the carrying
value of the Company's investment was reduced by $250,000 to
reflect an estimate of the net realizable value. In November
1994, the carrying value of the investment was further reduced
to $308,571, which the Company received in December 1994 from
ImmuCell to purchase all of the shares owned by the Company.
The $120,000 advance was paid in full in December 1994.
6. On October 27, 1994, the Company's plan to institute a
retention bonus plan for some of its employees was approved
by the United States Bankruptcy Court for the District of
Massachusetts. The plan called for bonuses to be paid in
stock of the reorganized Company upon emergence from Chapter
11 reorganization. As of June 30, 1995, the Company has
recorded a compensation expense of $1,447,550, which is a
non-cash expense.
7. On July 7, 1994, the date of the Company's Chapter 11 filing, it
had a $1,007,228 note payable to Fleet Credit Corporation (Fleet)
secured by $1,025,553 of certificates of deposit pledged to
Fleet. The certificates of deposit matured and were used to
liquidate the debt in accordance with relief from stay
granted by the Court. Included in the Company's short-term
investment balances for July 7, July 31, and August 31 were
$1,025,553 of CD's pledged to Fleet Credit Corporation.
8. On March 9, 1995, an Adversary Proceeding No. 95-4074 was
commenced in the United States Bankruptcy Court, District of
Massachusetts, Western Division, by Institut Pasteur and
Genetic Systems Corporation alleging patent infringement and
asking for damages and injunctive relief. The Company has filed
an answer and counterclaim denying the plaintiffs' allegations
and alleging a breach by Institut Pasteur of its license agreement
with the Company.
