<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): October 13, 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.
- ----------------------
Neuromedical Systems, Inc. (the "Company") hereby files under Form 8-K
portions of the Company's monthly operating report for September of 1999 as
filed on October 13, 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>
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
25th day of October, 1999.
NEUROMEDICAL SYSTEMS, INC.
By: /s/ Thomas McFarland
---------------------------------
Thomas McFarland
Acting Chief Financial Officer
<PAGE>
Acc Balance Sheet
ACCRUAL BASIS-2
COMPARATIVE BALANCE SHEET
THIRD QUARTER
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
ASSETS MONTH MONTH MONTH
------------------------------------------------------------
JULY AUGUST SEPTEMBER
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1 CASH 3,607,473 3,175,989 3,499,457
- ------------------------------------------------------------------------------------------------------------------------
2 ACCOUNTS RECEIVABLE, NET 185,049 1,969 86,595
- ------------------------------------------------------------------------------------------------------------------------
3 INVENTORY
- ------------------------------------------------------------------------------------------------------------------------
4 NOTES RECEIVABLE
- ------------------------------------------------------------------------------------------------------------------------
5 PREPAID EXPENSES 714,316 712,693 214,399
- ------------------------------------------------------------------------------------------------------------------------
6 OTHER (ATTACH LIST) 7,000,000 5,950,000 8,575,000
- ------------------------------------------------------------------------------------------------------------------------
7 TOTAL CURRENT ASSETS 11,506,838 9,840,651 12,375,451
- ------------------------------------------------------------------------------------------------------------------------
8 PROPERTY, PLANT & EQUIPMENT 19,047,177 19,047,177 18,927,777
- ------------------------------------------------------------------------------------------------------------------------
9 LESS: ACCUMULATED DEPRECIATION/DEPLETION (18,757,733) (18,757,733) (18,757,733)
- ------------------------------------------------------------------------------------------------------------------------
10 NET PROPERTY, PLANT & EQUIPMENT 289,444 289,444 170,044
- ------------------------------------------------------------------------------------------------------------------------
11 DUE FROM AFFILIATES & INSIDERS 74,566 44,776 44,977
- ------------------------------------------------------------------------------------------------------------------------
12 INTANGIBLES (270,700) (270,700) (270,700)
- ------------------------------------------------------------------------------------------------------------------------
13 OTHER (ATTACH LIST) 53,635 53,635 53,635
- ------------------------------------------------------------------------------------------------------------------------
14 TOTAL ASSETS 11,653,783 9,957,806 12,373,407
- ------------------------------------------------------------------------------------------------------------------------
POST PETITION LIABILITIES
- ------------------------------------------------------------------------------------------------------------------------
15 ACCOUNTS PAYABLE 57,764 58,263 8,482
- ------------------------------------------------------------------------------------------------------------------------
16 TAXES PAYABLE
- ------------------------------------------------------------------------------------------------------------------------
17 NOTES PAYABLE
- ------------------------------------------------------------------------------------------------------------------------
18 PROFESSIONAL FEES 415,852
- ------------------------------------------------------------------------------------------------------------------------
19 SECURED DEBT
- ------------------------------------------------------------------------------------------------------------------------
20 DUE TO AFFILIATES & INSIDERS 11,104 13,625 5,370
- ------------------------------------------------------------------------------------------------------------------------
21 OTHER (ATTACH LIST)
- ------------------------------------------------------------------------------------------------------------------------
22 TOTAL POSTPETITION LIABILITIES 484,720 71,888 13,852
- ------------------------------------------------------------------------------------------------------------------------
PREPETITION LIABILITIES
- ------------------------------------------------------------------------------------------------------------------------
23 SECURED DEBT 2,926,239 2,866,239 2,866,239
- ------------------------------------------------------------------------------------------------------------------------
24 PRIORITY DEBT
- ------------------------------------------------------------------------------------------------------------------------
25 UNSECURED DEBT
- ------------------------------------------------------------------------------------------------------------------------
26 OTHER (ATTACH LIST) 2,866,301 2,855,723 2,827,957
- ------------------------------------------------------------------------------------------------------------------------
27 TOTAL PREPETITION LIABILITIES 5,792,540 5,721,962 5,694,196
- ------------------------------------------------------------------------------------------------------------------------
28 TOTAL LIABILITIES 6,277,260 5,793,850 5,708,048
- ------------------------------------------------------------------------------------------------------------------------
EQUITY
- ------------------------------------------------------------------------------------------------------------------------
29 OWNERS' PREPETITION EQUITY (86,028) (86,028) (86,028)
- ------------------------------------------------------------------------------------------------------------------------
30 POSTPETITION CUMULATIVE PROFIT OR (LOSS) 5,462,551 4,249,984 6,751,387
- ------------------------------------------------------------------------------------------------------------------------
31 TOTAL EQUITY (DEFICIT) 5,376,523 4,163,956 6,665,359
- ------------------------------------------------------------------------------------------------------------------------
32 TOTAL LIABILITIES & OWNERS' EQUITY 11,653,783 9,957,806 12,373,407
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
ACCRUAL BASIS-2
COMPARATIVE BALANCE SHEET -DETAIL SCHEDULES
3RD QUARTER 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
MONTH MONTH MONTH
-----------------------------------------
JULY AUGUST SEPTEMBER
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
LINE 5 PREPAIDS:
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
A/R EXCHANGE - REVIEW STATIONS
- -------------------------------------------------------------------------------------
PREPAID EXPENSES 637,542 637,542 125,654
- -------------------------------------------------------------------------------------
PREPAID INSURANCE 56,460 55,116 54,768
- -------------------------------------------------------------------------------------
EMPLOYEE RECEIVABLES 3,906 3,627 3,628
- -------------------------------------------------------------------------------------
INTEREST RECEIVABLE - OTHER
- -------------------------------------------------------------------------------------
SECURITY DEPOSITS SHORT TERM 16,408 16,408 30,349
- -------------------------------------------------------------------------------------
TOTAL PREPAIDS 714,316 712,693 214,399
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
LINE 6 OTHER
- -------------------------------------------------------------------------------------
INVESTMENTS HELD FOR SALE 7,000,000 8,575,000
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
LINE 11 DUE FROM AFFILIATES AND INSIDERS:
- -------------------------------------------------------------------------------------
ISRAEL 13,695,196 11,934,768 11,934,767
- -------------------------------------------------------------------------------------
NETHERLANDS 1,983,006
- -------------------------------------------------------------------------------------
EUROPE 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) (12,034,768) (12,034,768)
- -------------------------------------------------------------------------------------
PAUL SOHMER 44,568 44,776 44,978
- -------------------------------------------------------------------------------------
DUE FROM AFFILIATES AND INSIDERS 74,566 44,776 44,977
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
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 923,082 913,809 913,809
- -------------------------------------------------------------------------------------
NOTE PAYABLE - BIRD FOUNDATION 120,096 120,096 120,096
- -------------------------------------------------------------------------------------
INTERCOMPANY A/P - HONGKONG
- -------------------------------------------------------------------------------------
ACCRUED COMPENSATION 645,100 645,100 645,100
- -------------------------------------------------------------------------------------
ACCRUED VACATION 129,923 128,618 100,852
- -------------------------------------------------------------------------------------
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 2,866,301 2,855,723 2,827,957
- -------------------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
LINE 30 POSTPETITION CUMULATIVE PROFIT OR
LOSS
-----------------------------------------------------------------------------
CUMULATIVE RESULTS OF OPERATION 7,912,551 7,749,984 7,626,387
-----------------------------------------------------------------------------
UNREALIZED GAIN (LOSS) ON (2,450,000) (3,500,000) (875,000)
INVESTMENTS HELD FOR SALE
-----------------------------------------------------------------------------
TOTAL 5,462,551 4,249,984 6,751,387
-----------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
ACCRUAL BASIS-3
INCOME STATEMENT
THIRD QUARTER
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
REVENUES MONTH MONTH MONTH
-----------------------------------------------------------
JULY AUGUST SEPTEMBER
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1 GROSS REVENUES 46,640 25,164 13,538
- --------------------------------------------------------------------------------------------------------------------
2 LESS: RETURNS & DISCOUNTS
- --------------------------------------------------------------------------------------------------------------------
3 NET REVENUE 46,640 25,164 13,538
- --------------------------------------------------------------------------------------------------------------------
COST OF GOODS SOLD
- --------------------------------------------------------------------------------------------------------------------
4 BEGINNING INVENTORY -
- --------------------------------------------------------------------------------------------------------------------
5 ADD: PURCHASES
- --------------------------------------------------------------------------------------------------------------------
6 LESS: ENDING INVENTORY - -
- --------------------------------------------------------------------------------------------------------------------
7 COST OF GOODS SOLD - - -
- --------------------------------------------------------------------------------------------------------------------
8 GROSS PROFIT 46,640 25,164 13,538
- --------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
- --------------------------------------------------------------------------------------------------------------------
9 OFFICER/INSIDER COMPENSATION 131,482 29,166 76,346
- --------------------------------------------------------------------------------------------------------------------
10 DIRECT LABOR/SALARIES 36,901 41,166 18,821
- --------------------------------------------------------------------------------------------------------------------
11 PAYROLL TAXES 5,018 3,483 2,557
- --------------------------------------------------------------------------------------------------------------------
12 RENT & LEASE EXPENSE 15,933 385 21,029
- --------------------------------------------------------------------------------------------------------------------
13 INSURANCE 36,013 43,409 (1,751)
- --------------------------------------------------------------------------------------------------------------------
14 DEPRECIATION/DEPLETION/AMORTIZATION
- --------------------------------------------------------------------------------------------------------------------
15 GENERAL & ADMINISTRATIVE 1,000 1,522 1,482
- --------------------------------------------------------------------------------------------------------------------
16 OTHER (ATTACH LIST) 25,945 30,554 16,665
- --------------------------------------------------------------------------------------------------------------------
17 TOTAL OPERATING EXPENSES 252,292 149,685 135,149
- --------------------------------------------------------------------------------------------------------------------
18 OPERATING INCOME (205,652) (124,521) (121,611)
- --------------------------------------------------------------------------------------------------------------------
OTHER INCOME & EXPENSES
- --------------------------------------------------------------------------------------------------------------------
19 OTHER INCOME (ATTACH LIST) 12,220 74,390 9,374
- --------------------------------------------------------------------------------------------------------------------
20 OTHER EXPENSES (ATTACH LIST)
- --------------------------------------------------------------------------------------------------------------------
21 INTEREST EXPENSE (42,468) (154)
- --------------------------------------------------------------------------------------------------------------------
22 OTHER (ATTACH LIST)
- --------------------------------------------------------------------------------------------------------------------
23 NET OTHER INCOME & EXPENSES (30,248) 74,236 9,374
- --------------------------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
- --------------------------------------------------------------------------------------------------------------------
24 PROFESSIONAL FEES 415,852 112,282 6,360
- --------------------------------------------------------------------------------------------------------------------
25 U.S. TRUSTEE FEES 5,000
- --------------------------------------------------------------------------------------------------------------------
26 OTHER (ATTACH LIST)
- --------------------------------------------------------------------------------------------------------------------
27 TOTAL REORGANIZATION EXPENSES 415,852 112,282 11,360
- --------------------------------------------------------------------------------------------------------------------
28 INCOME TAX
- --------------------------------------------------------------------------------------------------------------------
29 NET PROFIT (LOSS) (651,752) (162,567) (123,597)
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
ACCRUAL BASIS-3
INCOME STATEMENT
3RD QUARTER 1999
----------------
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
MONTH MONTH MONTH
---------------------------------------------------
JULY AUGUST SEPTEMBER
- ----------------------------------------------------------------------------------------------------------
LINE 16 OTHER EXPENSES:
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LIFE AND HEALTH INSURANCE
- ----------------------------------------------------------------------------------------------------------
TRAVEL AND ENTERTAINMENT 3,373 2,482 (264)
- ----------------------------------------------------------------------------------------------------------
DUES AND SUBSCRIPTIONS (45)
- ----------------------------------------------------------------------------------------------------------
RELOCATION COSTS
- ----------------------------------------------------------------------------------------------------------
REPAIRS AND MAINTENANCE 562 1,534
- ----------------------------------------------------------------------------------------------------------
FREIGHT AND DELIVERIES 2,168 1,087 217
- ----------------------------------------------------------------------------------------------------------
COMPUTER EXPENSES 670 670 75
- ----------------------------------------------------------------------------------------------------------
EQUIPMENT LEASING 2,187 3,686 2,963
- ----------------------------------------------------------------------------------------------------------
AUTO EXPENSES (20)
- ----------------------------------------------------------------------------------------------------------
PAYROLL FEES 5,292 330 187
- ----------------------------------------------------------------------------------------------------------
CLINICAL TRIALS
- ----------------------------------------------------------------------------------------------------------
CONSULTANTS
- ----------------------------------------------------------------------------------------------------------
CONTRACTED SERVICES 875 7,600 7,126
- ----------------------------------------------------------------------------------------------------------
LEGAL - REFUND FROM INSURANCE CO.
- ----------------------------------------------------------------------------------------------------------
SUPPLIES AND MOVING 1,476 3,587 1,636
- ----------------------------------------------------------------------------------------------------------
TELEPHONE AND COMMUNICATIONS 10,515 10,366 3,064
- ----------------------------------------------------------------------------------------------------------
TAXES AND FEES (611) 229 147
- ----------------------------------------------------------------------------------------------------------
ASSET WRITE DOWN
- ----------------------------------------------------------------------------------------------------------
OTHER LEGAL
- ----------------------------------------------------------------------------------------------------------
ROYALTIES
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
TOTAL OTHER EXPENSE 25,945 30,554 16,665
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
LINE 19 OTHER INCOME:
- ----------------------------------------------------------------------------------------------------------
SALE OF EQUIPMENT 10,000
- ----------------------------------------------------------------------------------------------------------
MANAGEMENT FEES-AUSTRALIA 54,230
- ----------------------------------------------------------------------------------------------------------
INTERCOMPANY SETTLEMENT
- ----------------------------------------------------------------------------------------------------------
INTEREST 12,220 10,160 9,374
- ----------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME 12,220 74,390 9,374
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
LINE 22 OTHER :
- ----------------------------------------------------------------------------------------------------------
PENALTY FOR EARLY EXTINGUISHMENT
- ----------------------------------------------------------------------------------------------------------
OF DEBT
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
TOTAL OTHER - - -
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Cash Summary
Debtor: Neuromedical Systems, Inc.
ACCRUAL BASIS-4
<TABLE>
<CAPTION>
SUMMARY OF BANK ACCOUNTS:
- ---------------------------------------------------------------------------------------------
MONTH MONTH MONTH
---------------------------------------------
JULY AUGUST SEPTEMBER
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Checking 96,979 228,142 604,183
-----------------------------------------------------------------------------------
Money Market 3,481,839 2,803,745 2,812,870
-----------------------------------------------------------------------------------
Payroll 16,913 132,314 70,569
-----------------------------------------------------------------------------------
Morgan Stanley Dean Witter 8,527 8,563 8,597
-----------------------------------------------------------------------------------
Merrill Lynch 561 561 561
-----------------------------------------------------------------------------------
Certificates of Deposit 61 61 61
-----------------------------------------------------------------------------------
Citifunds 2,593 2,603 2,615
-----------------------------------------------------------------------------------
Investment -
-----------------------------------------------------------------------------------
TOTAL 3,607,473 3,175,989 3,499,457
- ---------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Cash Stmt
Debtor: Neuromedical Systems, Inc.
CASH BASIS - 2
Case No.: 99-703 (PJW)
THIRD QUARTER
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
CASH RECEIPTS AND DISBURSEMENTS MONTH MONTH MONTH
---------------------------------------------------
JULY AUGUST SEPTEMBER
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1 CASH - BEGINNING OF MONTH 4,046,151 3,607,473 3,175,989
- ----------------------------------------------------------------------------------------------------------------
RECEIPTS
- ----------------------------------------------------------------------------------------------------------------
2 CASH SALES
- ----------------------------------------------------------------------------------------------------------------
3 ACCOUNTS RECEIVABLE COLLECTIONS 97,451 208,239 48,313
- ----------------------------------------------------------------------------------------------------------------
4 LOANS & ADVANCES
- ----------------------------------------------------------------------------------------------------------------
5 SALE OF ASSETS 10,000
- ----------------------------------------------------------------------------------------------------------------
6 LEASE & RENTAL INCOME
- ----------------------------------------------------------------------------------------------------------------
7 WAGES
- ----------------------------------------------------------------------------------------------------------------
8 OTHER (ATTACH LIST) 109,598 106,498 502,928
- ----------------------------------------------------------------------------------------------------------------
9 TOTAL RECEIPTS 207,049 324,737 551,241
- ----------------------------------------------------------------------------------------------------------------
DISBURSEMENTS
- ----------------------------------------------------------------------------------------------------------------
10 NET PAYROLL 67,522 47,687 84,694
- ----------------------------------------------------------------------------------------------------------------
11 PAYROLL TAXES PAID 125,154 24,912 49,051
- ----------------------------------------------------------------------------------------------------------------
12 SALES, USE & OTHER TAXES PAID
- ----------------------------------------------------------------------------------------------------------------
13 INVENTORY PURCHASES
- ----------------------------------------------------------------------------------------------------------------
14 MORTGAGE PAYMENTS
- ----------------------------------------------------------------------------------------------------------------
15 OTHER SECURED NOTE PAYMENTS 35,522 105,576
- ----------------------------------------------------------------------------------------------------------------
16 RENTAL & LEASE PAYMENTS 402 6,955 1,356
- ----------------------------------------------------------------------------------------------------------------
17 UTILITIES 24,213 15,598 14,161
- ----------------------------------------------------------------------------------------------------------------
18 INSURANCE 74,720 9,207 52,316
- ----------------------------------------------------------------------------------------------------------------
19 VEHICLE EXPENSES
- ----------------------------------------------------------------------------------------------------------------
20 TRAVEL 3,000 2,281
- ----------------------------------------------------------------------------------------------------------------
21 ENTERTAINMENT
- ----------------------------------------------------------------------------------------------------------------
22 REPAIRS & MAINTENANCE 504
- ----------------------------------------------------------------------------------------------------------------
23 SUPPLIES
- ----------------------------------------------------------------------------------------------------------------
24 ADVERTISING
- ----------------------------------------------------------------------------------------------------------------
25 HOUSEHOLD EXPENSES
- ----------------------------------------------------------------------------------------------------------------
26 CHARITABLE CONTRIBUTIONS
- ----------------------------------------------------------------------------------------------------------------
27 GIFTS
- ----------------------------------------------------------------------------------------------------------------
28 OTHER (ATTACH LIST) 307,415 28,756 11,446
- ----------------------------------------------------------------------------------------------------------------
29 TOTAL 637,947 240,973 213,528
- ----------------------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
- ----------------------------------------------------------------------------------------------------------------
30 PROFESSIONAL FEES 2,779 515,249 9,244
- ----------------------------------------------------------------------------------------------------------------
31 U.S. TRUSTEE FEES 5,000 5,000
- ----------------------------------------------------------------------------------------------------------------
32 OTHER (ATTACH LIST)
- ----------------------------------------------------------------------------------------------------------------
33 TOTAL 7,779 515,249 14,244
- ----------------------------------------------------------------------------------------------------------------
34 TOTAL DISBURSEMENTS 645,727 756,222 227,773
- ----------------------------------------------------------------------------------------------------------------
35 NET CASH FLOW (438,678) (431,484) 323,468
- ----------------------------------------------------------------------------------------------------------------
36 CASH - END OF MONTH 3,607,473 3,175,989 3,499,457
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
CASH RECEIPTS - OTHER JULY AUGUST SEPTEMBER
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
RETURN OF LOC FUNDS FROM LANDLORD 482,818
------------------------------------------------------------------------------------------
COBRA 15,413 12,248 9,692
------------------------------------------------------------------------------------------
MANAGEMENT FEES 54,230
------------------------------------------------------------------------------------------
INSURANCE 5,400 762
------------------------------------------------------------------------------------------
NET SETTLEMENT WITH INTERCOMPANY 30,000
------------------------------------------------------------------------------------------
REFUND POSTAGE 138
------------------------------------------------------------------------------------------
BANK INTEREST 87,758 9,952 9,172
------------------------------------------------------------------------------------------
MISCELLANEOUS REFUNDS 69 484
------------------------------------------------------------------------------------------
TAX REFUND 889
------------------------------------------------------------------------------------------
TOTAL OTHER CASH RECEIPTS 109,598 106,498 502,928
- -----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
CASH DISBURSEMENTS - OTHER JULY AUGUST SEPTEMBER
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
------------------------------------------------------------------------------------------
401 K
------------------------------------------------------------------------------------------
CLINICAL TRIAL 49,209 9,273
------------------------------------------------------------------------------------------
CORPORATE SERVICES 1,000 1,522 1,482
------------------------------------------------------------------------------------------
CONTRACTED SERVICES 7,600 7,126
------------------------------------------------------------------------------------------
OFFICE 2,925 3,822 1,297
------------------------------------------------------------------------------------------
PAYROLL SERVICES 332 5,053 424
------------------------------------------------------------------------------------------
SHIPPING 1,450 1,336 1,117
------------------------------------------------------------------------------------------
BANK FEE 2,500 150
------------------------------------------------------------------------------------------
SETTLEMENT SALE 250,000
------------------------------------------------------------------------------------------
FILING FEES/LEGAL
------------------------------------------------------------------------------------------
TOTAL OTHER CASH DISBURSEMENTS 307,415 28,756 11,446
- -----------------------------------------------------------------------------------------------------
</TABLE>
Page 1
