<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): May 19, 1999
NEUROMEDICAL SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-26984 13-3526980
(State or other (Commission File No.) (I.R.S. Employer
jurisdiction Identification No.)
of incorporation)
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.
- ----------------------
On March 30, 1999, counsel for Neuromedical Systems, Inc. (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 the Company's monthly operating reports filed with
the United States Trustee's Office and the U.S. Bankruptcy Court for the
District of Delaware (the "Bankruptcy Court" and such reports, the "Monthly
Reports") within fifteen calendar days following the submission of such Monthly
Reports to the Bankruptcy Court. The Company hereby files under Form 8-K the
Monthly Reports for the first quarter of 1999 and for April of 1999, each as
filed on May 19, 1999 with the Bankruptcy Court. Attachments to the Monthly
Reports 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.
<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
second day of June, 1999.
NEUROMEDICAL SYSTEMS, INC.
By: /s/ Mark L. Smith
--------------------------
Mark L. Smith
Vice President, Finance and
Administration and Chief Financial Officer
<PAGE>
ACCRUAL BASIS-2
COMPARATIVE BALANCE SHEET
FIRST QUARTER 1999
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
ASSETS MONTH MONTH MONTH
----------------------------------------------------
JANUARY FEBRUARY MARCH
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
1 CASH 8,343,096 7,041,796 5,457,479
- -----------------------------------------------------------------------------------------------------------------
2 ACCOUNTS RECEIVABLE, NET 439,237 338,927 248,001
- -----------------------------------------------------------------------------------------------------------------
3 INVENTORY 921,181 921,181 300,181
- -----------------------------------------------------------------------------------------------------------------
4 NOTES RECEIVABLE - - -
- -----------------------------------------------------------------------------------------------------------------
5 PREPAID EXPENSES 312,880 293,494 378,654
- -----------------------------------------------------------------------------------------------------------------
6 OTHER (ATTACH LIST) - - -
- -----------------------------------------------------------------------------------------------------------------
7 TOTAL CURRENT ASSETS 10,016,394 8,595,398 6,384,315
- -----------------------------------------------------------------------------------------------------------------
8 PROPERTY, PLANT & EQUIPMENT 19,022,076 19,050,076 19,047,177
- -----------------------------------------------------------------------------------------------------------------
LESS: ACCUMULATED
9 DEPRECIATION/DEPLETION (15,286,967) (15,503,460) (15,714,217)
- -----------------------------------------------------------------------------------------------------------------
10 NET PROPERTY, PLANT & EQUIPMENT 3,735,109.00 3,546,616.00 3,332,960.00
- -----------------------------------------------------------------------------------------------------------------
11 DUE FROM AFFILIATES & INSIDERS 60,349,320 61,104,600 73,701
- -----------------------------------------------------------------------------------------------------------------
12 INTANGIBLES (534,002) (520,702) (520,702)
- -----------------------------------------------------------------------------------------------------------------
13 OTHER (ATTACH LIST) 53,635 53,635 53,635
- -----------------------------------------------------------------------------------------------------------------
14 TOTAL ASSETS 73,620,456 72,779,547 9,323,909
- -----------------------------------------------------------------------------------------------------------------
POST PETITION LIABILITIES
- -----------------------------------------------------------------------------------------------------------------
15 ACCOUNTS PAYABLE 164,360
- -----------------------------------------------------------------------------------------------------------------
16 TAXES PAYABLE
- -----------------------------------------------------------------------------------------------------------------
17 NOTES PAYABLE
- -----------------------------------------------------------------------------------------------------------------
18 PROFESSIONAL FEES
- -----------------------------------------------------------------------------------------------------------------
19 SECURED DEBT
- -----------------------------------------------------------------------------------------------------------------
20 DUE TO AFFILIATES & INSIDERS 2,998
- -----------------------------------------------------------------------------------------------------------------
21 OTHER (ATTACH LIST)
- -----------------------------------------------------------------------------------------------------------------
22 TOTAL POSTPETITION LIABILITIES - - 167,358
- -----------------------------------------------------------------------------------------------------------------
PREPETITION LIABILITIES
- -----------------------------------------------------------------------------------------------------------------
23 SECURED DEBT 6,370,672 6,336,769 6,363,586
- -----------------------------------------------------------------------------------------------------------------
24 PRIORITY DEBT
- -----------------------------------------------------------------------------------------------------------------
25 UNSECURED DEBT
- -----------------------------------------------------------------------------------------------------------------
26 OTHER (ATTACH LIST) 3,418,380 3,624,270 2,990,876
- -----------------------------------------------------------------------------------------------------------------
27 TOTAL PREPETITION LIABILITIES 9,789,052 9,961,039 9,354,462
- -----------------------------------------------------------------------------------------------------------------
28 TOTAL LIABILITIES 9,789,052 9,961,039 9,521,820
- -----------------------------------------------------------------------------------------------------------------
EQUITY
- -----------------------------------------------------------------------------------------------------------------
29 OWNERS' PREPETITION EQUITY 63,831,404 62,818,508 (86,028)
- -----------------------------------------------------------------------------------------------------------------
30 POSTPETITION CUMULATIVE PROFIT OR (LOSS) - - (111,883)
- -----------------------------------------------------------------------------------------------------------------
31 TOTAL EQUITY (DEFICIT) 63,831,404 62,818,508 (197,911)
- -----------------------------------------------------------------------------------------------------------------
32 TOTAL LIABILITIES & OWNERS' EQUITY 73,620,456 72,779,547 9,323,909
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
ACCRUAL BASIS-2
COMPARATIVE BALANCE SHEET -DETAIL SCHEDULES
1ST QUARTER 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
MONTH MONTH MONTH
----------------------------------------------------
JANUARY FEBRUARY MARCH
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
LINE 5 PREPAIDS:
- --------------------------------------------------------------------------------------------------------------------------
A/R EXCHANGE - REVIEW STATIONS 76,876 76,876 76,876
- --------------------------------------------------------------------------------------------------------------------------
PREPAID EXPENSES 40,090 61,053 213,285
- --------------------------------------------------------------------------------------------------------------------------
PREPAID INSURANCE 143,005 120,389 71,234
- --------------------------------------------------------------------------------------------------------------------------
EMPLOYEE RECEIVABLES 13,014 11,092 3,628
- --------------------------------------------------------------------------------------------------------------------------
INTEREST RECEIVABLE - OTHER 34,554 18,743 8,290
- --------------------------------------------------------------------------------------------------------------------------
SECURITY DEPOSITS SHORT TERM 5,341 5,341 5,341
- --------------------------------------------------------------------------------------------------------------------------
TOTAL PREPAIDS 312,880 293,494 378,654
- --------------------------------------------------------------------------------------------------------------------------
LINE 11 DUE FROM AFFILIATES AND INSIDERS:
- --------------------------------------------------------------------------------------------------------------------------
ISRAEL 13,193,265 13,610,273 13,695,196
- --------------------------------------------------------------------------------------------------------------------------
NETHERLANDS 1,983,019 1,983,019 1,983,008
- --------------------------------------------------------------------------------------------------------------------------
EUROPE 4,474,228 4,765,141 4,766,149
- --------------------------------------------------------------------------------------------------------------------------
ACE 26,105,428 26,105,428 -
- --------------------------------------------------------------------------------------------------------------------------
HONGKONG 6,897,660 6,944,660 -
- --------------------------------------------------------------------------------------------------------------------------
AUSTRALIA 4,544,254 4,544,613 -
- --------------------------------------------------------------------------------------------------------------------------
ASIA PACIFIC 2,905,776 2,905,776
- --------------------------------------------------------------------------------------------------------------------------
OVERSEAS HOLDING 50,000 50,000 50,000
- --------------------------------------------------------------------------------------------------------------------------
OVERSEAS GROUP 50,000 50,000 50,000
- --------------------------------------------------------------------------------------------------------------------------
RESERVE FOR UNCOLLECTIBLE INTERCOMPANY OBLIGATIONS (20,514,353)
- --------------------------------------------------------------------------------------------------------------------------
PAUL SOHMER 145,690 145,690 43,701
- --------------------------------------------------------------------------------------------------------------------------
DUE FROM AFFILIATES AND INSIDERS 60,349,320 61,104,600 73,701
- --------------------------------------------------------------------------------------------------------------------------
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 350,604 574,760 991,061
- --------------------------------------------------------------------------------------------------------------------------
NOTE PAYABLE - BIRD FOUNDATION 120,096 120,096 120,096
- --------------------------------------------------------------------------------------------------------------------------
INTERCOMPANY A/P - HONGKONG 12,548 12,548 -
- --------------------------------------------------------------------------------------------------------------------------
ACCRUED COMPENSATION 780,318 766,772 645,100
- --------------------------------------------------------------------------------------------------------------------------
ACCRUED VACATION 193,946 208,607 186,519
- --------------------------------------------------------------------------------------------------------------------------
ACCRUED ADVERTISING (2,692) (2,691) -
- --------------------------------------------------------------------------------------------------------------------------
ACCRUED AUDIT 44,570 54,960 32,960
- --------------------------------------------------------------------------------------------------------------------------
ACCRUED CONSULTING 98,625 98,625 76,500
- --------------------------------------------------------------------------------------------------------------------------
ACCRUED INTEREST 45,839 47,133 47,133
- --------------------------------------------------------------------------------------------------------------------------
ACCRUED LEGAL 560,729 365,075 88,064
- --------------------------------------------------------------------------------------------------------------------------
ACCRUED MISCELLANEOUS 428,376 687,504 101,256
- --------------------------------------------------------------------------------------------------------------------------
ACCRUED OTHER 21,815 20,000 39,185
- --------------------------------------------------------------------------------------------------------------------------
ACCRUED TAXES 52,365 54,737 54,737
- --------------------------------------------------------------------------------------------------------------------------
ACCRUED RESTRUCTURING 712,202 616,262 608,265
- --------------------------------------------------------------------------------------------------------------------------
ACCRUED PAYROLL TAXES (8,777) (8,777) -
- --------------------------------------------------------------------------------------------------------------------------
ACCRUED PENSION PLAN PAYABLE 2,839 2,839 -
- --------------------------------------------------------------------------------------------------------------------------
ACCRUED SALES TAX PAYABLE 4,977 5,820 -
- --------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER 3,418,380 3,624,270 2,990,876
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
ACCRUAL BASIS-2
COMPARATIVE BALANCE SHEET -DETAIL SCHEDULES
1ST QUARTER 1999
CASE NO: 99-703 (PJW)
FOOTNOTE TO BALANCE SHEET
The following balances differ from the balances included in Schedule F of the
Schedules of Assets and Liabilities provided to the Court due to differences in
accounting practice compared to the final liability as of the filing of Chapter
11.
Balance per Schedule F as filed $ 1,588,223
Adjustments to be filed with Court (25,179)
Accrued vacation for continuing employees 101,917
Estimated employee compensation 372,691
Estimated T&E 62,500
Estimated restructuring expenses 382,115
Estimated DE taxes 54,737
Bird Foundation loans 167,229
Estimated legal fees 88,064
Estimated accounting fees 32,960
Estimated Board of Directors fees 9,625
Estimated Royalty 20,000
General accrual for unaccrued items 135,994
------------
$ 2,990,876
------------
Page 3
<PAGE>
ACCRUAL BASIS-3
INCOME STATEMENT
FIRST QUARTER 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
REVENUES MONTH MONTH MONTH
----------------------------------------------------
JANUARY FEBRUARY MARCH
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1 GROSS REVENUES 122,174 104,872 87,824
- ---------------------------------------------------------------------------------------------------------------
2 LESS: RETURNS & DISCOUNTS (630) (1,072) 825
- ---------------------------------------------------------------------------------------------------------------
3 NET REVENUE 121,544 103,800 88,649
- ---------------------------------------------------------------------------------------------------------------
COST OF GOODS SOLD
- ---------------------------------------------------------------------------------------------------------------
4 BEGINNING INVENTORY 921,181 921,181 921,181
- ---------------------------------------------------------------------------------------------------------------
5 ADD: PURCHASES
- ---------------------------------------------------------------------------------------------------------------
6 LESS: ENDING INVENTORY 921,181 921,181 300,181
- ---------------------------------------------------------------------------------------------------------------
7 COST OF GOODS SOLD - - 621,000
- ---------------------------------------------------------------------------------------------------------------
8 GROSS PROFIT 121,544 103,800 (532,351)
- ---------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
- ---------------------------------------------------------------------------------------------------------------
9 OFFICER/INSIDER COMPENSATION 68,137 68,137 240,893
- ---------------------------------------------------------------------------------------------------------------
10 DIRECT LABOR/SALARIES 299,566 232,809 202,959
- ---------------------------------------------------------------------------------------------------------------
11 PAYROLL TAXES 54,034 34,362 39,690
- ---------------------------------------------------------------------------------------------------------------
12 RENT & LEASE EXPENSE 58,378 49,205 21,836
- ---------------------------------------------------------------------------------------------------------------
13 INSURANCE 30,034 30,034 77,577
- ---------------------------------------------------------------------------------------------------------------
14 DEPRECIATION/DEPLETION/AMORTIZATION 203,950 203,193 195,954
- ---------------------------------------------------------------------------------------------------------------
15 GENERAL & ADMINISTRATIVE 190,214 364,505 228,122
- ---------------------------------------------------------------------------------------------------------------
16 OTHER (ATTACH LIST) 418,107 359,192 46,945
- ---------------------------------------------------------------------------------------------------------------
17 TOTAL OPERATING EXPENSES 1,322,420 1,341,437 1,053,976
- ---------------------------------------------------------------------------------------------------------------
18 OPERATING INCOME (1,200,876) (1,237,637) (1,586,327)
- ---------------------------------------------------------------------------------------------------------------
OTHER INCOME & EXPENSES
- ---------------------------------------------------------------------------------------------------------------
19 OTHER INCOME (ATTACH LIST) 302,107 288,767 16,081
- ---------------------------------------------------------------------------------------------------------------
20 OTHER EXPENSES (ATTACH LIST)
- ---------------------------------------------------------------------------------------------------------------
21 INTEREST EXPENSE (72,587) (66,131) (64,420)
- ---------------------------------------------------------------------------------------------------------------
22 OTHER (ATTACH LIST) (61,002,564)
- ---------------------------------------------------------------------------------------------------------------
23 NET OTHER INCOME & EXPENSES 229,520 222,636 (61,050,903)
- ---------------------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
- ---------------------------------------------------------------------------------------------------------------
24 PROFESSIONAL FEES 378,939
- ---------------------------------------------------------------------------------------------------------------
25 U.S. TRUSTEE FEES 250
- ---------------------------------------------------------------------------------------------------------------
26 OTHER (ATTACH LIST)
- ---------------------------------------------------------------------------------------------------------------
27 TOTAL REORGANIZATION EXPENSES - - 379,189.00
- ---------------------------------------------------------------------------------------------------------------
28 INCOME TAX
- ---------------------------------------------------------------------------------------------------------------
29 NET PROFIT (LOSS) (971,356) (1,015,001) (63,016,419)
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
Page 4
<PAGE>
ACCRUAL BASIS-3
INCOME STATEMENT
1ST QUARTER 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
MONTH MONTH MONTH
----------------------------------------------------
JANUARY FEBRUARY MARCH
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LINE 16 OTHER EXPENSES:
- ---------------------------------------------------------------------------------------------------------------
LIFE AND HEALTH INSURANCE 56,930 42,489 15,232
- ---------------------------------------------------------------------------------------------------------------
TRAVEL AND ENTERTAINMENT 38,533 21,343 (15,419)
- ---------------------------------------------------------------------------------------------------------------
DUES AND SUBSCRIPTIONS 391 50 306
- ---------------------------------------------------------------------------------------------------------------
RELOCATION COSTS 6,314 7,087 (76,730)
- ---------------------------------------------------------------------------------------------------------------
REPAIRS AND MAINTENANCE 8,386 3,548 750
- ---------------------------------------------------------------------------------------------------------------
FREIGHT AND DELIVERIES 18,093 23,827 10,413
- ---------------------------------------------------------------------------------------------------------------
COMPUTER EXPENSES 32,753 1,731 2,462
- ---------------------------------------------------------------------------------------------------------------
EQUIPMENT LEASING 1,530 2,887 (734)
- ---------------------------------------------------------------------------------------------------------------
AUTO EXPENSES 5,348 51,099 3,578
- ---------------------------------------------------------------------------------------------------------------
PAYROLL FEES 972 4,161 1,262
- ---------------------------------------------------------------------------------------------------------------
CLINICAL TRIALS 89,358 57,967 68,415
- ---------------------------------------------------------------------------------------------------------------
CONSULTANTS 76,197 49,621 31,035
- ---------------------------------------------------------------------------------------------------------------
CONTRACTED SERVICES 8,346 21,893 3,655
- ---------------------------------------------------------------------------------------------------------------
SUPPLIES 16,360 3,676 3,287
- ---------------------------------------------------------------------------------------------------------------
TELEPHONE AND COMMUNICATIONS 30,202 37,947 24,646
- ---------------------------------------------------------------------------------------------------------------
TAXES AND FEES 6,516 35,242 11,085
- ---------------------------------------------------------------------------------------------------------------
OTHER 63 (25,376) (55,233)
- ---------------------------------------------------------------------------------------------------------------
ROYALTIES 21,815 20,000 -
- ---------------------------------------------------------------------------------------------------------------
TOTAL OTHER EXPENSE 418,107 359,192 28,010
- ---------------------------------------------------------------------------------------------------------------
LINE 19 OTHER INCOME:
- ---------------------------------------------------------------------------------------------------------------
INTERCOMPANY 267,000 267,000 -
- ---------------------------------------------------------------------------------------------------------------
INTEREST ON LOAN TO OFFICER 1,066 (3,144) (2,058)
- ---------------------------------------------------------------------------------------------------------------
INTEREST - BANKS 34,041 24,911 17,745
- ---------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME 302,107 288,767 15,687
- ---------------------------------------------------------------------------------------------------------------
LINE 22 OTHER :
- ---------------------------------------------------------------------------------------------------------------
FORGIVENESS OF INTERCOMPANY
- ---------------------------------------------------------------------------------------------------------------
DEBT - - 40,488,211
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
Page 5
<PAGE>
Cash Summary
Debtor: Neuromedical Systems, Inc.
ACCRUAL BASIS-4
<TABLE>
<CAPTION>
SUMMARY OF BANK ACCOUNTS:
- -----------------------------------------------------------------------------------------------------
MONTH MONTH MONTH
---------------------------------------------------
JANUARY FEBRUARY MARCH
---------------------------------------------------------------------------------------
<S> <C> <C> <C>
---------------------------------------------------------------------------------------
Checking (349,020) 57,689 364,848
---------------------------------------------------------------------------------------
Money Market 2,129,595 622,595 796,499
---------------------------------------------------------------------------------------
Payroll 92,855 93,740 22,370
---------------------------------------------------------------------------------------
Morgan Stanley Dean Witter 8,435 8,465 8,500
---------------------------------------------------------------------------------------
Merrill Lynch 559 559 559
---------------------------------------------------------------------------------------
Certificates of Deposit * 4,457,981 4,256,047 4,262,152
---------------------------------------------------------------------------------------
Citifunds 2,530 2,540 2,551
---------------------------------------------------------------------------------------
Investment 2,000,161 2,000,161 (0)
---------------------------------------------------------------------------------------
TOTAL 8,343,096 7,041,796 5,457,479
- -----------------------------------------------------------------------------------------------------
</TABLE>
* Restricted
Page 6
<PAGE>
Cash Statement
Debtor: Neuromedical Systems, Inc.
CASH BASIS - 2
Case No.: 99-703 (PJW)
FIRST QUARTER
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
CASH RECEIPTS AND DISBURSEMENTS MONTH MONTH MONTH
----------------------------------------------------
JANUARY FEBRUARY MARCH
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1 CASH - BEGINNING OF MONTH 10,606,050 8,343,096 7,041,796
- -----------------------------------------------------------------------------------------------------------------
<CAPTION>
RECEIPTS
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
2 CASH SALES
- -----------------------------------------------------------------------------------------------------------------
3 ACCOUNTS RECEIVABLE COLLECTIONS 95,732 207,284 101,398
- -----------------------------------------------------------------------------------------------------------------
4 LOANS & ADVANCES 3,224 2,523 112,053
- -----------------------------------------------------------------------------------------------------------------
5 SALE OF ASSETS 1,575 3,325
- -----------------------------------------------------------------------------------------------------------------
6 LEASE & RENTAL INCOME 11,425 11,426 11,426
- -----------------------------------------------------------------------------------------------------------------
7 WAGES
- -----------------------------------------------------------------------------------------------------------------
8 OTHER (ATTACH LIST) 42,267 55,363 36,353
- -----------------------------------------------------------------------------------------------------------------
9 TOTAL RECEIPTS 154,224 276,596 264,555
- -----------------------------------------------------------------------------------------------------------------
<CAPTION>
DISBURSEMENTS
- -----------------------------------------------------------------------------------------------------------------
10 NET PAYROLL 392,861 254,888 325,257
- -----------------------------------------------------------------------------------------------------------------
11 PAYROLL TAXES PAID 222,623 157,749 196,704
- -----------------------------------------------------------------------------------------------------------------
12 SALES, USE & OTHER TAXES PAID 1,055 3,262
- -----------------------------------------------------------------------------------------------------------------
13 INVENTORY PURCHASES 1,375
- -----------------------------------------------------------------------------------------------------------------
14 MORTGAGE PAYMENTS
- -----------------------------------------------------------------------------------------------------------------
15 OTHER SECURED NOTE PAYMENTS 270,988 137,209 -
- -----------------------------------------------------------------------------------------------------------------
16 RENTAL & LEASE PAYMENTS 86,234 40,115 12,020
- -----------------------------------------------------------------------------------------------------------------
17 UTILITIES 28,569 24,455 19,075
- -----------------------------------------------------------------------------------------------------------------
18 INSURANCE 84,010 45,928 105,971
- -----------------------------------------------------------------------------------------------------------------
19 VEHICLE EXPENSES 10,311 9,471 2,929
- -----------------------------------------------------------------------------------------------------------------
20 TRAVEL 37,369 20,883 31,330
- -----------------------------------------------------------------------------------------------------------------
21 ENTERTAINMENT 2,272 559 61
- -----------------------------------------------------------------------------------------------------------------
22 REPAIRS & MAINTENANCE 17,993 1,253 913
- -----------------------------------------------------------------------------------------------------------------
23 SUPPLIES 14,548 3,659 -
- -----------------------------------------------------------------------------------------------------------------
24 ADVERTISING 1,190 - -
- -----------------------------------------------------------------------------------------------------------------
25 HOUSEHOLD EXPENSES 218 615 1,977
- -----------------------------------------------------------------------------------------------------------------
26 CHARITABLE CONTRIBUTIONS
- -----------------------------------------------------------------------------------------------------------------
27 GIFTS 100 75
- -----------------------------------------------------------------------------------------------------------------
28 OTHER (ATTACH LIST) 1,245,461 861,037 790,434
- -----------------------------------------------------------------------------------------------------------------
29 TOTAL 2,417,178 1,557,896 1,489,933
- -----------------------------------------------------------------------------------------------------------------
<CAPTION>
REORGANIZATION EXPENSES
- -----------------------------------------------------------------------------------------------------------------
30 PROFESSIONAL FEES 20,000 358,939
- -----------------------------------------------------------------------------------------------------------------
31 U.S. TRUSTEE FEES
- -----------------------------------------------------------------------------------------------------------------
32 OTHER (ATTACH LIST)
- -----------------------------------------------------------------------------------------------------------------
33 TOTAL - 20,000 358,939
- -----------------------------------------------------------------------------------------------------------------
34 TOTAL DISBURSEMENTS 2,417,178 1,577,896 1,848,872
- -----------------------------------------------------------------------------------------------------------------
35 NET CASH FLOW (2,262,954) (1,301,299) (1,584,317)
- -----------------------------------------------------------------------------------------------------------------
36 CASH - END OF MONTH 8,343,096 7,041,796 5,457,479
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
Page 32
<PAGE>
Cash Stmt Detail
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
CASH RECEIPTS - OTHER JANUARY FEBRUARY MARCH
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COBRA 9,329 10,960 6,805
------------------------------------------------------------------------------------------------------
POSTAGE 20 2,473
------------------------------------------------------------------------------------------------------
INSURANCE REFUNDS 4,290 7,037
------------------------------------------------------------------------------------------------------
TRAVEL REFUND 250 12
------------------------------------------------------------------------------------------------------
AUTO REFUND 546
------------------------------------------------------------------------------------------------------
UTILITY REFUND 857 69
------------------------------------------------------------------------------------------------------
OFFICE 234
------------------------------------------------------------------------------------------------------
PAYROLL TAX REFUND 2,072
------------------------------------------------------------------------------------------------------
INTEREST 31,811 37,325 19,894
------------------------------------------------------------------------------------------------------
TOTAL OTHER 42,267 55,363 36,353
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
DISBURSEMENTS - OTHER JANUARY FEBRUARY MARCH
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
401 K CONTRIBUTIONS 13,923 12,751 8,690
------------------------------------------------------------------------------------------------------
AUDIT 22,500 22,500
------------------------------------------------------------------------------------------------------
CLINICAL TRIAL 69,278 16,688 3,810
------------------------------------------------------------------------------------------------------
CONSULTING 88,547 23,932 428
------------------------------------------------------------------------------------------------------
CORPORATE SERVICES 7,106 1,089 2,545
------------------------------------------------------------------------------------------------------
EQUIPMENT PURCHASES 29,816 4,850
------------------------------------------------------------------------------------------------------
INTERCOMPANY FUNDING 855,000 523,206 125,000
------------------------------------------------------------------------------------------------------
LEGAL ADVICE 113,887 242,182 632,665
------------------------------------------------------------------------------------------------------
MISCELLANEOUS 328 854 (3,219)
------------------------------------------------------------------------------------------------------
PAYROLL SERVICES 986 510
------------------------------------------------------------------------------------------------------
ROYALTY 25,772 - (12,949)
------------------------------------------------------------------------------------------------------
SHIPPING 17,738 9,885 27,899
------------------------------------------------------------------------------------------------------
SUBSCRIPTIONS/DUES 580 (796)
------------------------------------------------------------------------------------------------------
BANK CHARGES - 2,590 6,360
------------------------------------------------------------------------------------------------------
TOTAL OTHER 1,245,461 861,037 790,434
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 33
<PAGE>
Accrual Balance Sheet
ACCRUAL BASIS-2
COMPARATIVE BALANCE SHEET
SECOND QUARTER
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
ASSETS MONTH MONTH MONTH
------------------------------------------------------
APRIL
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1 CASH 5,056,355
- ------------------------------------------------------------------------------------------------------------------------
2 ACCOUNTS RECEIVABLE, NET 259,071
- ------------------------------------------------------------------------------------------------------------------------
3 INVENTORY 300,181
- ------------------------------------------------------------------------------------------------------------------------
4 NOTES RECEIVABLE
- ------------------------------------------------------------------------------------------------------------------------
5 PREPAID EXPENSES 215,848
- ------------------------------------------------------------------------------------------------------------------------
6 OTHER (ATTACH LIST)
- ------------------------------------------------------------------------------------------------------------------------
7 TOTAL CURRENT ASSETS 5,831,455 - -
- ------------------------------------------------------------------------------------------------------------------------
8 PROPERTY, PLANT & EQUIPMENT 19,047,177
- ------------------------------------------------------------------------------------------------------------------------
9 LESS: ACCUMULATED DEPRECIATION/DEPLETION (15,922,774)
- ------------------------------------------------------------------------------------------------------------------------
10 NET PROPERTY, PLANT & EQUIPMENT 3,124,403 - -
- ------------------------------------------------------------------------------------------------------------------------
11 DUE FROM AFFILIATES & INSIDERS 73,948
- ------------------------------------------------------------------------------------------------------------------------
12 INTANGIBLES (520,702)
- ------------------------------------------------------------------------------------------------------------------------
13 OTHER (ATTACH LIST) 53,635
- ------------------------------------------------------------------------------------------------------------------------
14 TOTAL ASSETS 8,562,739 - -
- ------------------------------------------------------------------------------------------------------------------------
POST PETITION LIABILITIES
- ------------------------------------------------------------------------------------------------------------------------
15 ACCOUNTS PAYABLE 41,792
- ------------------------------------------------------------------------------------------------------------------------
16 TAXES PAYABLE
- ------------------------------------------------------------------------------------------------------------------------
17 NOTES PAYABLE
- ------------------------------------------------------------------------------------------------------------------------
18 PROFESSIONAL FEES
- ------------------------------------------------------------------------------------------------------------------------
19 SECURED DEBT
- ------------------------------------------------------------------------------------------------------------------------
20 DUE TO AFFILIATES & INSIDERS 8,615
- ------------------------------------------------------------------------------------------------------------------------
21 OTHER (ATTACH LIST)
- ------------------------------------------------------------------------------------------------------------------------
22 TOTAL POSTPETITION LIABILITIES 50,407 - -
- ------------------------------------------------------------------------------------------------------------------------
PREPETITION LIABILITIES
- ------------------------------------------------------------------------------------------------------------------------
23 SECURED DEBT 6,174,768
- ------------------------------------------------------------------------------------------------------------------------
24 PRIORITY DEBT
- ------------------------------------------------------------------------------------------------------------------------
25 UNSECURED DEBT
- ------------------------------------------------------------------------------------------------------------------------
26 OTHER (ATTACH LIST) 2,980,876
- ------------------------------------------------------------------------------------------------------------------------
27 TOTAL PREPETITION LIABILITIES 9,155,644 - -
- ------------------------------------------------------------------------------------------------------------------------
28 TOTAL LIABILITIES 9,206,051 - -
- ------------------------------------------------------------------------------------------------------------------------
EQUITY
- ------------------------------------------------------------------------------------------------------------------------
29 OWNERS' PREPETITION EQUITY (86,028)
- ------------------------------------------------------------------------------------------------------------------------
30 POSTPETITION CUMULATIVE PROFIT OR (LOSS) (557,284)
- ------------------------------------------------------------------------------------------------------------------------
31 TOTAL EQUITY (DEFICIT) (643,312) - -
- ------------------------------------------------------------------------------------------------------------------------
32 TOTAL LIABILITIES & OWNERS' EQUITY 8,562,739 - -
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Balance Sheet Detail
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
- ----------------------------------------------------------------------------------------------------------------------
PREPAID INSURANCE 70,269
- ----------------------------------------------------------------------------------------------------------------------
EMPLOYEE RECEIVABLES 6,152
- ----------------------------------------------------------------------------------------------------------------------
INTEREST RECEIVABLE - OTHER 17,119
- ----------------------------------------------------------------------------------------------------------------------
SECURITY DEPOSITS SHORT TERM 5,341
- ----------------------------------------------------------------------------------------------------------------------
TOTAL PREPAIDS 215,848 - -
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
LINE 11 DUE FROM AFFILIATES AND INSIDERS:
- ----------------------------------------------------------------------------------------------------------------------
ISRAEL 13,695,196
- ----------------------------------------------------------------------------------------------------------------------
NETHERLANDS 1,983,006
- ----------------------------------------------------------------------------------------------------------------------
EUROPE 4,766,149
- ----------------------------------------------------------------------------------------------------------------------
ACE
- ----------------------------------------------------------------------------------------------------------------------
HONGKONG
- ----------------------------------------------------------------------------------------------------------------------
AUSTRALIA
- ----------------------------------------------------------------------------------------------------------------------
ASIA PACIFIC
- ----------------------------------------------------------------------------------------------------------------------
OVERSEAS HOLDING 50,000
- ----------------------------------------------------------------------------------------------------------------------
OVERSEAS GROUP 50,000
- ----------------------------------------------------------------------------------------------------------------------
RESERVE FOR UNCOLLECTIBLE INTERCOMPANY OBLIGATIONS (20,514,353)
- ----------------------------------------------------------------------------------------------------------------------
PAUL SOHMER 43,950
- ----------------------------------------------------------------------------------------------------------------------
DUE FROM AFFILIATES AND INSIDERS 73,948 - -
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
LINE 13 OTHER:
- ----------------------------------------------------------------------------------------------------------------------
SECURITY DEPOSITS LONG TERM 53,635
- ----------------------------------------------------------------------------------------------------------------------
TOTAL OTHER 53,635 - -
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
LINE 26 OTHER:
- ----------------------------------------------------------------------------------------------------------------------
ACCOUNTS PAYABLE 981,061
- ----------------------------------------------------------------------------------------------------------------------
NOTE PAYABLE - BIRD FOUNDATION 120,096
- ----------------------------------------------------------------------------------------------------------------------
INTERCOMPANY A/P - HONGKONG -
- ----------------------------------------------------------------------------------------------------------------------
ACCRUED COMPENSATION 645,100
- ----------------------------------------------------------------------------------------------------------------------
ACCRUED VACATION 186,519
- ----------------------------------------------------------------------------------------------------------------------
ACCRUED ADVERTISING -
- ----------------------------------------------------------------------------------------------------------------------
ACCRUED AUDIT 32,960
- ----------------------------------------------------------------------------------------------------------------------
ACCRUED CONSULTING 76,500
- ----------------------------------------------------------------------------------------------------------------------
ACCRUED INTEREST 47,133
- ----------------------------------------------------------------------------------------------------------------------
ACCRUED LEGAL 88,064
- ----------------------------------------------------------------------------------------------------------------------
ACCRUED MISCELLANEOUS 101,256
- ----------------------------------------------------------------------------------------------------------------------
ACCRUED OTHER 39,185
- ----------------------------------------------------------------------------------------------------------------------
ACCRUED TAXES 54,737
- ----------------------------------------------------------------------------------------------------------------------
ACCRUED RESTRUCTURING 608,265
- ----------------------------------------------------------------------------------------------------------------------
ACCRUED PAYROLL TAXES -
- ----------------------------------------------------------------------------------------------------------------------
ACCRUED PENSION PLAN PAYABLE -
- ----------------------------------------------------------------------------------------------------------------------
ACCRUED SALES TAX PAYABLE -
- ----------------------------------------------------------------------------------------------------------------------
TOTAL OTHER 2,980,876 - -
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Accrual Income Stmt
ACCRUAL BASIS-3
INCOME STATEMENT
SECOND QUARTER
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
REVENUES MONTH MONTH MONTH
---------------------------------------------
APRIL
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1 GROSS REVENUES 81,778
- ------------------------------------------------------------------------------------------------------------
2 LESS: RETURNS & DISCOUNTS
- ------------------------------------------------------------------------------------------------------------
3 NET REVENUE 81,778 - -
- ------------------------------------------------------------------------------------------------------------
COST OF GOODS SOLD
- ------------------------------------------------------------------------------------------------------------
4 BEGINNING INVENTORY 300,181
- ------------------------------------------------------------------------------------------------------------
5 ADD: PURCHASES
- ------------------------------------------------------------------------------------------------------------
6 LESS: ENDING INVENTORY 300,181
- ------------------------------------------------------------------------------------------------------------
7 COST OF GOODS SOLD - - -
- ------------------------------------------------------------------------------------------------------------
8 GROSS PROFIT 81,778 - -
- ------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
- ------------------------------------------------------------------------------------------------------------
9 OFFICER/INSIDER COMPENSATION 55,050
- ------------------------------------------------------------------------------------------------------------
10 DIRECT LABOR/SALARIES 73,516
- ------------------------------------------------------------------------------------------------------------
11 PAYROLL TAXES 8,267
- ------------------------------------------------------------------------------------------------------------
12 RENT & LEASE EXPENSE 49,426
- ------------------------------------------------------------------------------------------------------------
13 INSURANCE 80,938
- ------------------------------------------------------------------------------------------------------------
14 DEPRECIATION/DEPLETION/AMORTIZATION 208,557
- ------------------------------------------------------------------------------------------------------------
15 GENERAL & ADMINISTRATIVE 2,980
- ------------------------------------------------------------------------------------------------------------
16 OTHER (ATTACH LIST) 33,297
- ------------------------------------------------------------------------------------------------------------
17 TOTAL OPERATING EXPENSES 512,031 - -
- ------------------------------------------------------------------------------------------------------------
18 OPERATING INCOME (430,253) - -
- ------------------------------------------------------------------------------------------------------------
OTHER INCOME & EXPENSES
- ------------------------------------------------------------------------------------------------------------
19 OTHER INCOME (ATTACH LIST) 16,680
- ------------------------------------------------------------------------------------------------------------
20 OTHER EXPENSES (ATTACH LIST)
- ------------------------------------------------------------------------------------------------------------
21 INTEREST EXPENSE (5,087)
- ------------------------------------------------------------------------------------------------------------
22 OTHER (ATTACH LIST)
- ------------------------------------------------------------------------------------------------------------
23 NET OTHER INCOME & EXPENSES 11,593 - -
- ------------------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
- ------------------------------------------------------------------------------------------------------------
24 PROFESSIONAL FESS 26,741
- ------------------------------------------------------------------------------------------------------------
25 U.S. TRUSTEE FEES
- ------------------------------------------------------------------------------------------------------------
26 OTHER (ATTACH LIST)
- ------------------------------------------------------------------------------------------------------------
27 TOTAL REORGANIZATION EXPENSES 26,741 - -
- ------------------------------------------------------------------------------------------------------------
28 INCOME TAX
- ------------------------------------------------------------------------------------------------------------
29 NET PROFIT (LOSS) (445,401) - -
- ------------------------------------------------------------------------------------------------------------
</TABLE>
Page 3
<PAGE>
Income Stmt Detail
ACCRUAL BASIS-3
INCOME STATEMENT
2ND QUARTER 1999
----------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
MONTH MONTH MONTH
---------------------------------------------------
APRIL MAY JUNE
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LINE 16 OTHER EXPENSES:
- -----------------------------------------------------------------------------------------------------------------------
LIFE AND HEALTH INSURANCE
- -----------------------------------------------------------------------------------------------------------------------
TRAVEL AND ENTERTAINMENT 4,250
- -----------------------------------------------------------------------------------------------------------------------
DUES AND SUBSCRIPTIONS
- -----------------------------------------------------------------------------------------------------------------------
RELOCATION COSTS
- -----------------------------------------------------------------------------------------------------------------------
REPAIRS AND MAINTENANCE 399
- -----------------------------------------------------------------------------------------------------------------------
FREIGHT AND DELIVERIES 2,496
- -----------------------------------------------------------------------------------------------------------------------
COMPUTER EXPENSES
- -----------------------------------------------------------------------------------------------------------------------
EQUIPMENT LEASING
- -----------------------------------------------------------------------------------------------------------------------
AUTO EXPENSES
- -----------------------------------------------------------------------------------------------------------------------
PAYROLL FEES 519
- -----------------------------------------------------------------------------------------------------------------------
CLINICAL TRIALS 10,481
- -----------------------------------------------------------------------------------------------------------------------
CONSULTANTS
- -----------------------------------------------------------------------------------------------------------------------
CONTRACTED SERVICES
- -----------------------------------------------------------------------------------------------------------------------
SUPPLIES 926
- -----------------------------------------------------------------------------------------------------------------------
TELEPHONE AND COMMUNICATIONS 12,625
- -----------------------------------------------------------------------------------------------------------------------
TAXES AND FEES 1,601
- -----------------------------------------------------------------------------------------------------------------------
OTHER
- -----------------------------------------------------------------------------------------------------------------------
ROYALTIES
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
TOTAL OTHER EXPENSE 33,297 - -
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
LINE 19 OTHER INCOME:
- -----------------------------------------------------------------------------------------------------------------------
INTERCOMPANY
- -----------------------------------------------------------------------------------------------------------------------
INTEREST ON LOAN TO OFFICER
- -----------------------------------------------------------------------------------------------------------------------
INTEREST - BANKS 16,680
- -----------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME 16,680 - -
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
LINE 22 OTHER :
- -----------------------------------------------------------------------------------------------------------------------
FORGIVENESS OF INTERCOMPANY
- -----------------------------------------------------------------------------------------------------------------------
DEBT
- -----------------------------------------------------------------------------------------------------------------------
RESERVE FOR UNCOLLECTIBLE
- -----------------------------------------------------------------------------------------------------------------------
PORTION OF INTERCOMPANY OBLIGATIONS
- -----------------------------------------------------------------------------------------------------------------------
TOTAL OTHER - - -
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
_______________________________________________________________________________________________________________________
</TABLE>
Page 4
<PAGE>
Cash Summary
Debtor: Neuromedical Systems, Inc.
ACCRUAL BASIS-4
<TABLE>
<CAPTION>
SUMMARY OF BANK ACCOUNTS:
- ----------------------------------------------------------------------------
MONTH MONTH MONTH
--------------------------------
APRIL MAY JUNE
-----------------------------------------------------------------------
-----------------------------------------------------------------------
<S> <C> <C> <C>
Checking 81,547
-----------------------------------------------------------------------
Money Market 682,944
-----------------------------------------------------------------------
Payroll 12,744
-----------------------------------------------------------------------
Morgan Stanley Dean Witter 8,531
-----------------------------------------------------------------------
Merrill Lynch 560
-----------------------------------------------------------------------
Certificates of Deposit 4,267,467
-----------------------------------------------------------------------
Citifunds 2,562
-----------------------------------------------------------------------
Investment -
-----------------------------------------------------------------------
TOTAL 5,056,355 - -
-----------------------------------------------------------------------
</TABLE>
* Restricted
Page 5
<PAGE>
Cash Stmt
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
- ------------------------------------------------------------------------------------------------------------
RECEIPTS
- ------------------------------------------------------------------------------------------------------------
2 CASH SALES
- ------------------------------------------------------------------------------------------------------------
3 ACCOUNTS RECEIVABLE COLLECTIONS 70,709
- ------------------------------------------------------------------------------------------------------------
4 LOANS & ADVANCES
- ------------------------------------------------------------------------------------------------------------
5 SALE OF ASSETS
- ------------------------------------------------------------------------------------------------------------
6 LEASE & RENTAL INCOME
- ------------------------------------------------------------------------------------------------------------
7 WAGES
- ------------------------------------------------------------------------------------------------------------
8 OTHER (ATTACH LIST) 20,296
- ------------------------------------------------------------------------------------------------------------
9 TOTAL RECEIPTS 91,005 - -
- ------------------------------------------------------------------------------------------------------------
DISBURSEMENTS
- ------------------------------------------------------------------------------------------------------------
10 NET PAYROLL 76,563
- ------------------------------------------------------------------------------------------------------------
11 PAYROLL TAXES PAID 49,063
- ------------------------------------------------------------------------------------------------------------
12 SALES, USE & OTHER TAXES PAID 62
- ------------------------------------------------------------------------------------------------------------
13 INVENTORY PURCHASES
- ------------------------------------------------------------------------------------------------------------
14 MORTGAGE PAYMENTS
- ------------------------------------------------------------------------------------------------------------
15 OTHER SECURED NOTE PAYMENTS 182,729
- ------------------------------------------------------------------------------------------------------------
16 RENTAL & LEASE PAYMENTS 53,390
- ------------------------------------------------------------------------------------------------------------
17 UTILITIES 9,177
- ------------------------------------------------------------------------------------------------------------
18 INSURANCE 84,841
- ------------------------------------------------------------------------------------------------------------
19 VEHICLE EXPENSES
- ------------------------------------------------------------------------------------------------------------
20 TRAVEL 7,676
- ------------------------------------------------------------------------------------------------------------
21 ENTERTAINMENT
- ------------------------------------------------------------------------------------------------------------
22 REPAIRS & MAINTENANCE 472
- ------------------------------------------------------------------------------------------------------------
23 SUPPLIES
- ------------------------------------------------------------------------------------------------------------
24 ADVERTISING 1,870
- ------------------------------------------------------------------------------------------------------------
25 HOUSEHOLD EXPENSES
- ------------------------------------------------------------------------------------------------------------
26 CHARITABLE CONTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------
27 GIFTS
- ------------------------------------------------------------------------------------------------------------
28 OTHER (ATTACH LIST) 26,035
- ------------------------------------------------------------------------------------------------------------
29 TOTAL 491,878 - -
- ------------------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
- ------------------------------------------------------------------------------------------------------------
30 PROFESSIONAL FEES
- ------------------------------------------------------------------------------------------------------------
31 U.S. TRUSTEE FEES 250
- ------------------------------------------------------------------------------------------------------------
32 OTHER (ATTACH LIST)
- ------------------------------------------------------------------------------------------------------------
33 TOTAL 250 - -
- ------------------------------------------------------------------------------------------------------------
34 TOTAL DISBURSEMENTS 492,128 - -
- ------------------------------------------------------------------------------------------------------------
35 NET CASH FLOW (401,124) - -
- ------------------------------------------------------------------------------------------------------------
36 CASH - END OF MONTH 5,056,355 - -
- ------------------------------------------------------------------------------------------------------------
</TABLE>
Page 19
<PAGE>
Cash Stmt Detail
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------
CASH RECEIPTS - OTHER APRIL MAY JUNE
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
----------------------------------------------------------------------
COBRA 12,413
----------------------------------------------------------------------
TRAVEL 20
----------------------------------------------------------------------
INSURANCE 60
----------------------------------------------------------------------
BANK INTEREST 7,804
----------------------------------------------------------------------
TOTAL OTHER CASH RECEIPTS 20,296
----------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------------------------------------
CASH DISBURSEMENTS - OTHER APRIL MAY JUNE
- -----------------------------------------------------------------------------
401 K 5,414
----------------------------------------------------------------------
CLINICAL TRIAL 605
----------------------------------------------------------------------
CORPORATE SERVICES 2,220
----------------------------------------------------------------------
MISCELLANEOUS 198
----------------------------------------------------------------------
PATENT FEE 10,097
----------------------------------------------------------------------
PAYROLL SERVICES 614
----------------------------------------------------------------------
SHIPPING 1,701
----------------------------------------------------------------------
BANK FEE 5,187
----------------------------------------------------------------------
----------------------------------------------------------------------
TOTAL OTHER CASH DISBURSEMENTS 26,035
- -----------------------------------------------------------------------------
</TABLE>
Page 20
