SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
April 24, 1995
Date of Report (Date of earliest event reported)
CAMBRIDGE BIOTECH CORPORATION
(Exact name of registrant as specified in charter)
Delaware 0-12081 04-2726626
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification Number)
incorporation)
365 Plantation Street, Biotechnology Research Park
Worcester, Massachusetts 01605
(Address of principal executive offices and zip code)
(508) 797-5777
(Registrant's telephone number, including area code)
Not applicable
Former name or former address, if changed since last report)
Item 5. Other Events.
Attached hereto as Exhibit A is a copy of the Registrant's
monthly operating report dated April 18, 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 April 18,
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 requires 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: April 24, 1995
By: /s/ 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: MARCH 31, 1995
COMES NOW, CAMBRIDGE BIOTECH CORPORATION
Debtor-in-Possession, and hereby submits its Monthly Operating
Report for the period commencing MARCH 1, 1995 and ending MARCH 31,
1995 as shown by the report and exhibits consisting of 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: APRIL 18, 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: MARCH 1, 1995 THROUGH MARCH 31, 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 California $1,000,000 #1414140-95 3/1/95 $2,183.00 3/1/96
Comp. State Comp. per
Insur. Fund occurence
Other
_______________________________________________________________________________
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054 SCHEDULE #1
Month of: March, 1995
Monthly Operating Report - Wages - Executives
March 1 thru March 31, 1995
Taxes Taxes Taxes
Name Title Gross Net Withheld Paid Due
Jeffrey Beaver Pres./CEO 14,769.25 8,462.83 6,306.42 6,306.42 0.00
Gary Long V.P.Corp. Ops 14,423.10 10,138.10 4,285.00 4,285.00 0.00
Keith Jones Corp.Contr. 8,884.61 6,670.75 2,213.86 2,213.86 0.00
Total Executive Payroll: 38,076.96 25,271.68 12,805.28 12,805.28 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: March 1, 1995 through March 31, 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 ($181,110.61) $763.50 $4,622.12 $19,115.35
PLUS: Deposits 1,524,359.63
LESS:Disbursements (2,089,321.61) (266.50) (84,252.17) (759,617.59)
Other:
Transfers In(Out) (868,330.73) 92,907.49 774,376.21
Investments 1,680,000.00
------------ --------- ---------- -----------
Ending Book
Balance (1) $65,596.68 $497.00 $13,277.44 $33,873.97
========== ======= ========== ==========
_______________________________________________________________________________
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: March 1, 1995 through March 31, 1995
3. Bank Accounts
ACCOUNT TYPE
OPERATING PETTY CASH TOTAL
Bank Name Signet N/A
G/L number 2.1120 xx.1150
Account number 25733536 N/A
Beginning Book
Balance $0.00 $952.97 ($155,656.67)
PLUS: Deposits 1,524,359.63
LESS: Disbursements (1,031.24) (2,934,489.11)
Other:
Transfers In(Out) 1,047.03 (0.00)
Investments 1,680,000.00
--------- ----------- --------------
Ending Book
Balance (1) $0.00 $968.76 $114,213.85
====== ======= ===========
(1) Cash balances exclude $6,479,683 of short term investments of excess
cash. The total cash and short term investments decreased by
$1,410,130 for the month of March and increased by $3,984,157
since the filing date.
_______________________________________________________________________________
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054
As of: March 31, 1995
Monthly Operating Report
4. Post Petition Payments:
Amount Date Check #
Professionals:
Bowditch & Dewey $20,534.43 3/15/95 68366
Bromberg & Sunstein 554.18 3/14/95 68332
Brown Rudnick Freed & Gesmer 31,353.00 3/30/95 68649
Sterne, Kessler, Goldstein 12,114.22 3/29/95 68641
Sterne, Kessler, Goldstein 14,345.53 3/29/95 68641
Total (Professionals) $78,901.36
Pre-Petition Debts:
For Priority Debt:
Accrued Vacation Taken $3,720.57 various
_________
3,720.57
For Secured Debt:
Norwest Capital Lease Payment (2.3505) 366.44 3/13/95 68316
________
366.44
For Unsecured Debt:
Accrued Vacation Taken 3,535.74 various
________
3,535.74
For Accrued Restructuring:
Rockville Retention Bonus
Payments(TMS) 2,659.41 various wire transfer
2,659.41
__________
Total (Pre-petition) $10,282.16
* Pursuant to court approval
_______________________________________________________________________________
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054
Form OPR-1
Comparative Balance Sheets
As of: March 31, 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 4,675,836 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
________________________________________________________________________________
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054
Form OPR-1
Comparative Balance Sheets
As of: March 31, 1995
10/31/94 11/30/94 12/31/94
ASSETS
CURRENT ASSETS:
Cash $121,108 $1,978,464 $41,017
Other Negotiable
Instruments (CD's,
Treasury bills, etc. 2,744,989 6,518,489 8,396,774
Accounts Receivable
(See OPR-3) 2,456,055 2,020,214 2,676,067
Less: Allowance for
doubtful accounts (154,965) (154,988) (150,200)
Inventory, at lower
of cost or market 3,992,196 4,161,087 3,623,742
Prepaid Expenses and
Deposits 843,827 1,049,251 836,285
Other Receivables 112,983 65,389 92,624
TOTAL CURRENT ASSETS 10,116,193 15,637,906 15,516,309
PROPERTY, PLANT AND
EQUIPMENT, AT COST 27,395,379 27,392,289 27,361,463
Less: Accumulated
Depreciation (14,056,613) (14,318,428)(14,526,151)
NET PROPERTY, PLANT
& EQUIP. 13,338,766 13,073,861 12,835,312
OTHER ASSETS
Investment in Foreign
Subsidiary & Interco
Receivables 7,319,514 1,100 1,100
Equity Investments in
Minority Interests 2,448,719 2,393,118 2,084,547
Long term Notes
Receivable 120,000 120,000 0
Patents & Purchased
Technology, net 4,089,540 4,017,654 4,057,044
Misc. other assets 110,888 72,832 105,791
NET OTHER ASSETS 14,088,661 6,604,704 6,248,482
TOTAL ASSETS $37,543,620 $35,316,471 $34,600,103
________________________________________________________________________________
Comparative Balance Sheets
As of: March 31, 1995
1/31/95 2/28/95 3/31/95
ASSETS
CURRENT ASSETS:
Cash $70,469 ($155,657) $114,214
Other Negotiable Instruments
(CD's, Treasury bills, etc. 8,171,774 8,159,683 6,479,683
Accounts Receivable (See OPR-3) 2,366,192 2,489,859 2,902,506
Less: Allowance for doubtful accounts (150,754) (151,583) (148,773)
Inventory, at lower of cost or market 3,724,804 3,567,739 3,624,245
Prepaid Expenses and Deposits 857,048 931,831 1,198,692
Other Receivables 78,022 60,615 61,603
TOTAL CURRENT ASSETS 15,117,555 14,902,487 14,232,370
PROPERTY, PLANT AND
EQUIPMENT, AT COST 27,367,498 27,379,288 27,480,169
Less: Accumulated Depreciation (14,773,133)(15,008,591) (15,241,885)
NET PROPERTY, PLANT & EQUIP. 12,594,365 12,370,697 12,238,284
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 3,996,889 3,943,189 3,900,274
Misc. other assets 105,668 105,546 105,423
NET OTHER ASSETS 6,188,204 6,134,382 6,091,344
TOTAL ASSETS $33,900,124 $33,407,566 $32,561,998
See Accompanying Notes to Financial Statements.
________________________________________________________________________________
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054
Form OPR-2
Comparative Balance Sheets
As of: March 31, 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: March 31, 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.
(1) Financial statements are for U.S. operations only.
(2) In November, the Company received $3.5 million on account of a
payment originally due to the Company in 1995.
____________________________________________________________________________
Comparative Balance Sheets
As of: March 31, 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
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.
____________________________________________________________________________
Case Name: Cambridge Biotech Corporation Form: OPR-3
Case Number: 94-43054
Summary of Accounts Receivable
As of: March 31, 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
_________________________________________________________________________
Case Name: Cambridge Biotech Corporation Form: OPR-3
Case Number: 94-43054
Summary of Accounts Receivable
As of: March 31, 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
________________________________________________________________________
Case Name: Cambridge Biotech Corporation Form OPR-4
Case Number: 94-43054
Schedule of Post Petition Liabilities
As of: March 31, 1995
DATE DATE TOTAL 0-30 31-60
INCURRED DUE DUE DAYS DAYS
TAXES PAYABLE
Federal Income Taxes 0
FICA-Employer's Share 0
FICA-Employee's Share 0
Unemployment Tax 0
State Income Tax 0
State Sales & Use Tax Various Various 5,819 5,819
State Franchise Tax Various Various 11,480 2,000 2,000
Personal Property Tax Various Various 101,918 10,476 10,476
TOTAL TAXES PAYABLE 119,217 18,295 12,476
POST PETITION 0 0
SECURED DEBT
POST PETITION 0 0
UNSECURED DEBT
ACCRUED INTEREST
PAYABLE Various Various 265,819 33,914 30,918
TRADE ACCOUNTS
PAYABLE & OTHER
Accounts Payable Various Various 411,467 356,757 2,140
Accrued Expenses Various Various 2,223,172 1,015,209 293,468
Accrued Stock
Incentive Plan 7/8/94 Emerge 1,009,748 1,009,748
from
Ch. 11
TOTAL ACCOUNTS
PAYABLE & OTHER 3,644,387 2,381,714 295,608
TOTAL POST $4,029,423 $2,433,923 $339,002
PETITION LIABILITIES
_______________________________________________________________________________
Case Name: Cambridge Biotech Corporation Form OPR-4
Case Number: 94-43054
Schedule of Post Petition Liabilities
As of: March 31, 1995
DATE DATE TOTAL 61-90 OVER
INCURRED DUE DUE DAYS 90 DAYS
TAXES PAYABLE
Federal Income Taxes 0
FICA-Employer's Share 0
FICA-Employee's Share 0
Unemployment Tax 0
State Income Tax 0
State Sales & Use Tax Various Various 5,819
State Franchise Tax Various Various 11,480 2,000 5,480
Personal Property Tax Various Various 101,918 28,541 52,425
TOTAL TAXES PAYABLE 119,217 30,541 57,905
POST PETITION 0
SECURED DEBT
POST PETITION 0
UNSECURED DEBT
ACCRUED INTEREST
PAYABLE Various Various 265,819 32,312 168,675
TRADE ACCOUNTS
PAYABLE & OTHER
Accounts Payable Various Various 411,467 0 52,570
Accrued Expenses Various Various 2,223,172 299,001 615,494
Accrued Stock
Incentive Plan 7/8/94 Emerge 1,009,748
from
Ch. 11
TOTAL ACCOUNTS
PAYABLE & OTHER 3,644,387 299,001 668,064
TOTAL POST 4,029,423 361,854 894,644
PETITION LIABILITIES
_____________________________________________________________________________
Case Name: Cambridge Biotech Corporation
Case Number: 94-43054
Form OPR-5
Income Statement
Period: July 8, 1994 - March 31, 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 - March 31, 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 - March 31, 1995
FILING
January 1995 February March TO DATE
NET REVENUE (INCOME) $1,396,377 $1,881,536 $2,179,703 $14,966,680
COST OF GOODS SOLD
Materials
Labor - Direct
Manufacturing Overhead
TOTAL COST OF GOODS SOLD 823,876 987,069 1,062,214 8,745,956
GROSS PROFIT 572,501 894,467 1,117,489 6,220,724
OPERATING EXPENSES
Selling and Marketing 120,148 116,908 168,859 1,152,120
General and Administrative 433,681 451,508 633,552 4,249,414
Research and Development 404,257 395,094 687,899 3,767,679
Other: Regulatory 33,717 31,186 31,888 253,100
Other: Misc.
(Income)/Expense (52,814) (44,031) (42,176) (289,737)
TOTAL OPERATING EXPENSES 938,989 950,665 1,480,022 9,132,576
INCOME BEFORE INTEREST,
DEPRECIATION, TAXES OR
EXTRAORDINARY EXPENSES (366,488) (56,198) (362,533) (2,911,852)
CHAPTER 11 EXPENSES (106,000) (96,420) (78,629) (875,631)
INTEREST EXPENSE (32,384) (31,021) (33,980) (287,431)
DEPRECIATION (246,982) (235,458) (233,294) (2,272,751)
INCOME TAX EXPENSE 0 4,116 0 4,116
EXTRAORDINARY
INCOME(EXPENSE) 0 0 0 (5,780,919)
NET INCOME (LOSS) ($751,854) ($414,981) ($708,436)($12,124,468)
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 - March 31, 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 - March 31, 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 0 0
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 - March 31, 1995
January February March 7/8/94 - 3/31/95
SOURCES OF CASH
Income (Loss) From
Operations ($751,854) ($414,981) ($708,436) ($12,124,468)
Add: Depreciation,
Amortization & Other
Non-Cash Items 109,573 25,731 99,891 7,961,258
CASH GENERATED FROM
OPERATIONS (642,281) (389,250) (608,545) (4,163,210)
Add: Decrease in Assets:
Accounts Receivable 310,429 1,669,315
Other Receivables 14,602 17,407 128,167
Inventory 157,065 1,475,917
Prepaid Expenses &
Deposits 320,274
Property, Plant &
Equipment 83,737
Patents & Purchased
Technology 37,224
Intercompany Receivables 90,074
Short Term Investments 225,000 12,091 1,680,000 3,150,837
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 1,923 287,624
Post-Petition
Liabilities 290,907 194,519 67,032 3,019,675
Deferred Revenue 3,768,818
TOTAL SOURCES OF CASH (A) 198,657 (6,245) 1,138,487 12,317,887
USES OF CASH
Increase in Assets:
Accounts Receivable 122,838 415,457 1,764,495
Other Receivables 988 150,977
Intercompany Receivables 135,954
Inventory 101,062 56,506 480,926
Prepaid Expenses &
Deposits 20,763 74,783 267,061 978,848
Patents & Purchased
Technology 6,500 17,442 119,686
Property, Plant &
Equipment 6,035 11,790 100,880 168,232
Other non-current assets 60,304
Short Term Investments 8,307,967
Decrease in Liabilities:
Pre-Petition Liabilities 40,984 7,256 280,882
Post-Petition Liabilities 0
Accrued Restructuring 0 3,607 2,659 32,242
Secured Debt and
Capital Lease 361 363 367 1,010,347
TOTAL USES OF CASH (B) 169,205 219,881 868,616 13,490,860
NET SOURCE (USE) OF CASH
(A-B=NET) 29,452 (226,126) 269,871 (1,172,973)
CASH-BEGINNING BALANCE
(See OPR-1) 41,017 70,469 (155,657) 1,287,187
CASH-ENDING BALANCE
(See OPR-1) $70,469 ($155,657) $114,214 $114,214
_______________________________________________________________________________
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 received. 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 has not completed its detailed year end
review of potential excess and obsolete inventory, nor
have the Company's outside auditors reviewed the
valuation of the inventory. Inventory valuation and the
amount of reserves reflect management's best judgment,
but the completion of the review by the Company and its
auditors may result in adjustments to such amounts.
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. If
these estimated amounts change as a result of the CBL
audit, 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 appropriate to
recognize the revenue ratably over 1995 at $291,667 per
month.
4. The Company entered into an agreement with BASF Bioresearch
Corporation (BBE) for BBE 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 from 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 March 31, 1995, the Company has
recorded a compensation expense of $957,248, 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
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.
