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<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report (Date of earliest event reported): July 15, 1999
NEUROMEDICAL SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-26984 13-3526980
(State or other jurisdiction (Commission File No.) (I.R.S. Employer
of incorporation) Identification No.)
10 Mountain View Road, Suite C-100
Upper Saddle River, NJ 07458-1933
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (201) 934-0660
<PAGE>
ITEM 5. Other Events.
- ----------------------
Neuromedical Systems, Inc. (the "Company") hereby files under Form 8-K
portions of the Company's monthly operating report for June of 1999 as filed on
July 15, 1999 with the United States Trustee's Office and the U.S. Bankruptcy
Court for the District of Delaware (the "Bankruptcy Court" and such report, the
"Monthly Report"). Attachments to the Monthly Report as filed with the
Bankruptcy Court may be obtained upon request to the Company at the address set
forth on the cover page to this Form 8-K or through the Bankruptcy Court at 824
North Market Street, Wilmington, DE 19801.
On March 30, 1999, counsel for the Company, submitted a letter to the
Securities and Exchange Commission (the "SEC") requesting that the SEC staff
confirm that it would not recommend any SEC enforcement against the Company if,
in lieu of the Company's periodic reports required under the Securities Exchange
Act of 1934, the Company filed with the SEC under Form 8-K copies of its Monthly
Reports within fifteen calendar days following the submission of such Monthly
Reports to the Bankruptcy Court.
<PAGE>
ACCRUAL BASIS-2
COMPARATIVE BALANCE SHEET
<TABLE>
<CAPTION>
-------------------------------------------------
ASSETS MONTH MONTH MONTH
--------------------------------------------------
APRIL MAY JUNE
--------------------------------------------------
<S> <C> <C> <C>
1 CASH 5,056,355 4,913,981 4,046,151
2 ACCOUNTS RECEIVABLE, NET 259,071 259,757 235,859
3 INVENTORY 300,181 - -
--------------------------------------------------
4 NOTES RECEIVABLE
5 PREPAID EXPENSES 215,848 837,339 824,550
6 OTHER (ATTACH LIST) 10,062,500 8,400,000
7 TOTAL CURRENT ASSETS 5,831,455 16,073,577 13,506,560
--------------------------------------------------
8 PROPERTY, PLANT & EQUIPMENT 19,047,177 19,047,177 19,047,177
9 LESS: ACCUMULATED DEPRECIATION/DEPLETION (15,922,774) (18,757,733) (18,757,733)
10 NET PROPERTY, PLANT & EQUIPMENT 3,124,403 289,444 289,444
--------------------------------------------------
11 DUE FROM AFFILIATES & INSIDERS 73,948 74,156 74,358
12 INTANGIBLES (520,702) (520,700) (520,700)
13 OTHER (ATTACH LIST) 53,635 53,635 53,635
14 TOTAL ASSETS 8,562,739 15,970,112 13,403,297
--------------------------------------------------
POST PETITION LIABILITIES
15 ACCOUNTS PAYABLE 41,792 39,879 77,434
16 TAXES PAYABLE
17 NOTES PAYABLE 637,542 -
18 PROFESSIONAL FEES
19 SECURED DEBT
20 DUE TO AFFILIATES & INSIDERS 8,615 9,813 14,446
21 OTHER (ATTACH LIST)
22 TOTAL POSTPETITION LIABILITIES 50,407 687,234 91,880
--------------------------------------------------
PREPETITION LIABILITIES
23 SECURED DEBT 6,174,768 3,063,477 2,951,702
24 PRIORITY DEBT
25 UNSECURED DEBT
26 OTHER (ATTACH LIST) 2,980,876 2,953,157 2,931,440
27 TOTAL PREPETITION LIABILITIES 9,155,644 6,016,634 5,883,142
28 TOTAL LIABILITIES 9,206,051 6,703,868 5,975,022
--------------------------------------------------
EQUITY
29 OWNERS' PREPETITION EQUITY (86,028) (86,028) (86,028)
--------------------------------------------------
30 POSTPETITION CUMULATIVE PROFIT OR (LOSS) (557,284) 9,352,272 7,514,303
--------------------------------------------------
31 TOTAL EQUITY (DEFICIT) (643,312) 9,266,244 7,428,275
--------------------------------------------------
32 TOTAL LIABILITIES & OWNERS' EQUITY 8,562,739 15,970,112 13,403,297
--------------------------------------------------
</TABLE>
3
<PAGE>
ACCRUAL BASIS-2
COMPARATIVE BALANCE SHEET -DETAIL SCHEDULES
2ND QUARTER 1999
<TABLE>
<CAPTION>
MONTH MONTH MONTH
----------------------------------------------------
APRIL MAY JUNE
----------------------------------------------------
<S> <C> <C> <C>
LINE 5 PREPAIDS:
A/R EXCHANGE - REVIEW STATIONS 76,876 - -
PREPAID EXPENSES 40,091 715,836 667,384
PREPAID INSURANCE 70,269 65,666 61,063
EMPLOYEE RECEIVABLES 6,152 3,628 3,949
INTEREST RECEIVABLE - OTHER 17,119 38,568 75,746
SECURITY DEPOSITS SHORT TERM 5,341 13,641 16,408
----------------------------------------------------
TOTAL PREPAIDS 215,848 837,339 824,550
----------------------------------------------------
LINE 6 OTHER
INVESTMENTS HELD FOR SALE 10,062,500 8,400,000
----------------------------------------------------
LINE 11 DUE FROM AFFILIATES AND INSIDERS:
ISRAEL 13,695,196 13,695,196 13,695,196
NETHERLANDS 1,983,006 1,983,006 1,983,006
EUROPE 4,766,149 4,766,149 4,766,149
ACE
HONGKONG
AUSTRALIA
ASIA PACIFIC
OVERSEAS HOLDING 50,000 50,000 50,000
OVERSEAS GROUP 50,000 50,000 50,000
RESERVE FOR UNCOLLECTIBLE INTERCOMPANY OBLIGATIONS (20,514,353) (20,514,353) (20,514,353)
PAUL SOHMER 43,950 44,158 44,360
----------------------------------------------------
DUE FROM AFFILIATES AND INSIDERS 73,948 74,156 74,358
----------------------------------------------------
LINE 13 OTHER:
SECURITY DEPOSITS LONG TERM 53,635 53,635 53,635
----------------------------------------------------
TOTAL OTHER 53,635 53,635 53,635
----------------------------------------------------
LINE 26 OTHER:
ACCOUNTS PAYABLE 981,061 981,061 972,290
NOTE PAYABLE - BIRD FOUNDATION 120,096 120,096 120,096
INTERCOMPANY A/P - HONGKONG - -
ACCRUED COMPENSATION 645,100 645,100 645,100
ACCRUED VACATION 186,519 158,800 145,854
ACCRUED ADVERTISING - - -
ACCRUED AUDIT 32,960 32,960 32,960
ACCRUED CONSULTING 76,500 76,500 76,500
ACCRUED INTEREST 47,133 47,133 47,133
ACCRUED LEGAL 88,064 88,064 88,064
ACCRUED MISCELLANEOUS 101,256 101,256 101,256
ACCRUED OTHER 39,185 39,185 39,185
ACCRUED TAXES 54,737 54,737 54,737
ACCRUED RESTRUCTURING 608,265 608,265 608,265
ACCRUED PAYROLL TAXES - - -
ACCRUED PENSION PLAN PAYABLE - - -
ACCRUED SALES TAX PAYABLE - - -
----------------------------------------------------
TOTAL OTHER 2,980,876 2,953,157 2,931,440
----------------------------------------------------
LINE 30 POSTPETITION CUMULATIVE PROFIT OR LOSS
CUMULATIVE RESULTS OF OPERATION (557,284) 8,739,772 8,564,303
UNREALIZED GAIN (LOSS) ON INVESTMENTS HELD FOR SALE 612,500 (1,050,000)
----------------------------------------------------
TOTAL (557,284) 9,352,272 7,514,303
----------------------------------------------------
</TABLE>
4
<PAGE>
ACCRUAL BASIS-3
INCOME STATEMENT
SECOND QUARTER
<TABLE>
<CAPTION>
REVENUES MONTH MONTH MONTH
----------------------------------------------------
APRIL MAY JUNE
----------------------------------------------------
<S> <C> <C> <C>
1 GROSS REVENUES 81,778 13,435,522 101,684
2 LESS: RETURNS & DISCOUNTS
3 NET REVENUE 81,778 13,435,522 101,684
----------------------------------------------------
COST OF GOODS SOLD
4 BEGINNING INVENTORY 300,181 300,181 -
5 ADD: PURCHASES
6 LESS: ENDING INVENTORY 300,181 - -
7 COST OF GOODS SOLD - 300,181 -
----------------------------------------------------
8 GROSS PROFIT 81,778 13,135,341 101,684
----------------------------------------------------
OPERATING EXPENSES
9 OFFICER/INSIDER COMPENSATION 55,050 55,050 55,050
10 DIRECT LABOR/SALARIES 73,516 197,834 59,871
11 PAYROLL TAXES 8,267 15,524 4,955
12 RENT & LEASE EXPENSE 49,426 56,389 97,367
13 INSURANCE 80,938 58,489 8,907
14 DEPRECIATION/DEPLETION/AMORTIZATION 208,557 -
15 GENERAL & ADMINISTRATIVE 2,980 944 2,752
16 OTHER (ATTACH LIST) 33,297 3,196,148 36,058
17 TOTAL OPERATING EXPENSES 512,031 3,580,378 264,960
----------------------------------------------------
18 OPERATING INCOME (430,253) 9,554,963 (163,276)
----------------------------------------------------
OTHER INCOME & EXPENSES
19 OTHER INCOME (ATTACH LIST) 16,680 19,807 7,999
20 OTHER EXPENSES (ATTACH LIST)
21 INTEREST EXPENSE (5,087) (73,016) (34,118)
22 OTHER (ATTACH LIST) (204,698) 26,455
23 NET OTHER INCOME & EXPENSES 11,593 (257,907) 336
----------------------------------------------------
REORGANIZATION EXPENSES
24 PROFESSIONAL FESS 26,741 - 2,779
25 U.S. TRUSTEE FEES 9,750
26 OTHER (ATTACH LIST)
27 TOTAL REORGANIZATION EXPENSES 26,741 - 12,529
----------------------------------------------------
28 INCOME TAX
29 NET PROFIT (LOSS) (445,401) 9,297,056 (175,469)
----------------------------------------------------
</TABLE>
5
<PAGE>
ACCRUAL BASIS-3
INCOME STATEMENT
2ND QUARTER 1999
<TABLE>
<CAPTION>
MONTH MONTH MONTH
---------------------------------------------------
APRIL MAY JUNE
---------------------------------------------------
<S> <C> <C> <C>
LINE 16 OTHER EXPENSES:
LIFE AND HEALTH INSURANCE
TRAVEL AND ENTERTAINMENT 4,250 22,120 4,865
DUES AND SUBSCRIPTIONS
RELOCATION COSTS
REPAIRS AND MAINTENANCE 399 443
FREIGHT AND DELIVERIES 2,496 1,001 1,355
COMPUTER EXPENSES 820 935
EQUIPMENT LEASING 528 2,187
AUTO EXPENSES
PAYROLL FEES 519 314 139
CLINICAL TRIALS 10,481 10,481
CONSULTANTS 350,000
CONTRACTED SERVICES
LEGAL- REFUND FROM INSURANCE CO. (36,075)
SUPPLIES 926 799 149
TELEPHONE AND COMMUNICATIONS 12,625 10,386 18,965
TAXES AND FEES 1,601 817 6,595
ASSET WRITE DOWN 2,834,957
OTHER LEGAL 425
ROYALTIES
----------------------------------------------
TOTAL OTHER EXPENSE 33,297 3,196,148 36,058
----------------------------------------------
LINE 19 OTHER INCOME:
INTERCOMPANY
INTEREST ON LOAN TO OFFICER
INTEREST - BANKS 16,680 19,807 7,999
----------------------------------------------
TOTAL OTHER INCOME 16,680 19,807 7,999
----------------------------------------------
LINE 22 OTHER :
PENALTY FOR EARLY EXTINGUISHMENT 204,698 (26,455)
OF DEBT
----------------------------------------------
TOTAL OTHER - 204,698 (26,455)
----------------------------------------------
</TABLE>
6
<PAGE>
Debtor: Neuromedical Systems, Inc.
ACCRUAL BASIS-4
SUMMARY OF BANK ACCOUNTS:
<TABLE>
<CAPTION>
---------------------------------------------------
MONTH MONTH MONTH
---------------------------------------------------
APRIL MAY JUNE
<S> <C> <C> <C>
Checking 81,547 104,993 104,993
Money Market 682,944 4,186,399 3,798,871
Payroll 12,744 7,507 130,589
Morgan Stanley Dean Witter 8,531 8,495 8,495
Merrill Lynch 560 561 561
Certificates of Deposit 4,267,467 61 61
Citifunds 2,562 2,571 2,582
Investment -
TOTAL 5,056,355 4,310,587 4,046,151
</TABLE>
7
<PAGE>
Debtor: Neuromedical Systems, Inc.
CASH BASIS - 2
Case No.: 99-703 (PJW)
SECOND QUARTER
<TABLE>
<CAPTION>
---------------------------------------------------
CASH RECEIPTS AND DISBURSEMENTS MONTH MONTH MONTH
---------------------------------------------------
APRIL MAY JUNE
<S> <C> <C> <C>
1 CASH - BEGINNING OF MONTH 5,457,479 5,056,355 4,913,981
RECEIPTS
2 CASH SALES
3 ACCOUNTS RECEIVABLE COLLECTIONS 70,709 61,712 85,582
4 LOANS & ADVANCES
5 SALE OF ASSETS 4,000,000 40,000
6 LEASE & RENTAL INCOME
7 WAGES
8 OTHER (ATTACH LIST) 20,296 428,841 31,107
---------------------------------------------------
9 TOTAL RECEIPTS 91,005 4,490,553 156,689
DISBURSEMENTS
10 NET PAYROLL 76,563 175,004 84,219
11 PAYROLL TAXES PAID 49,063 109,234 42,698
12 SALES, USE & OTHER TAXES PAID 62
13 INVENTORY PURCHASES
14 MORTGAGE PAYMENTS
15 OTHER SECURED NOTE PAYMENTS 182,729 3,759,911 108,966
16 RENTAL & LEASE PAYMENTS 53,390 100,092 699,315
17 UTILITIES 9,177 17,502 25,469
18 INSURANCE 84,841 52,248 25,513
19 VEHICLE EXPENSES
20 TRAVEL 7,676 1,697 5,186
21 ENTERTAINMENT
22 REPAIRS & MAINTENANCE 472
23 SUPPLIES 297
24 ADVERTISING 1,870
25 HOUSEHOLD EXPENSES
26 CHARITABLE CONTRIBUTIONS
27 GIFTS
28 OTHER (ATTACH LIST) 26,035 22,586 15,675
---------------------------------------------------
29 TOTAL 491,878 4,238,570 1,007,042
REORGANIZATION EXPENSES
30 PROFESSIONAL FEES 394,358 12,727
31 U.S. TRUSTEE FEES 250 4,750
32 OTHER (ATTACH LIST)
---------------------------------------------------
33 TOTAL 250 394,358 17,477
---------------------------------------------------
34 TOTAL DISBURSEMENTS 492,128 4,632,928 1,024,519
---------------------------------------------------
35 NET CASH FLOW (401,124) (142,375) (867,830)
---------------------------------------------------
36 CASH - END OF MONTH 5,056,355 4,913,981 4,046,151
---------------------------------------------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
CASH RECEIPTS - OTHER APRIL MAY JUNE
<S> <C> <C> <C>
COBRA 12,413 6,731 22,922
TRAVEL 20
INSURANCE 60 48,868
NET SETTLEMENT WITH TBCC 336,504
REFUND AMERICAN EXPRESS DUES 19 42
BANK INTEREST 7,804 36,719 7,921
401K RELATED REFUNDS 221
TOTAL OTHER CASH RECEIPTS 20,296 428,841 31,107
</TABLE>
<TABLE>
<CAPTION>
CASH DISBURSEMENTS - OTHER APRIL MAY JUNE
<S> <C> <C> <C>
401 K 5,414 10,868 1,491
CLINICAL TRIAL 605
CORPORATE SERVICES 2,220 1,066 2,752
MISCELLANEOUS 198 - 2,161
PATENT FEE 10,097
PAYROLL SERVICES 614 334 1,034
SHIPPING 1,701 1,412 1,187
BANK FEE 5,187 606 140
SECURITY DEPOSIT 8,300 1,500
FILING FEES/LEGAL 5,410
TOTAL OTHER CASH DISBURSEMENTS 26,035 22,586 15,675
</TABLE>
9
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized in Upper Saddle River, New Jersey on this
27th day of July, 1999.
NEUROMEDICAL SYSTEMS, INC.
By: /s/ Paul R. Sohmer, M.D.
-------------------------------------------
Paul R. Sohmer, M.D.
President
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