SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported)
May 13, 1997
biosys, inc.
(Exact name of registrant as specified in its charter)
Delaware 0-19819 94-2878645
(State or other jurisdiction of (Commission file number) (I.R.S. Employer
incorporation or organization) Identification No.)
10150 Old Columbia Road, Columbia, Maryland 21046
(Address of principal executive offices) (Zip Code)
410-381-3800
(Registrant's telephone number, including area code)
This Current Report contains 7 pages.
<PAGE>
Item 5. Other Events
On May 13, 1997, biosys, inc. and its wholly-owned subsidiaries, Crop
Genetics International Corporation and AgriDyne Technologies, Inc. (collectively
the "Debtors"), filed a Monthly Operating Report for the month ended February
28, 1997 with the United States Bankruptcy Court for the District of Maryland
(the "Bankruptcy Court").
Included in the Monthly Operating Report filed with the Bankruptcy
Court are an unaudited condensed consolidated balance sheet as of February 28,
1997 and statements of operations for the Debtors for the month ended February
28, 1997 and two-month period ended February 28, 1997. Annexed hereto are the
unaudited condensed consolidated balance sheet and statements of operations
referred to above, and the notes thereto.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
biosys, inc.
Date: May 14, 1997 By: /s/ Michael R.N. Thomas
Michael R.N. Thomas
Vice President, Chief
Financial Officer and
Secretary/Treasurer
<PAGE>
biosys, inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheet
February 28, 1997
(CGI) Total Company
biosys Crop Consol
------------------------------------------------
Current assets:
Cash and equivalents 6,888,542 12,473 6,901,015
Restricted cash 1,009,774 1,009,774
Short-term investment 88,237 88,237
------------------------------------------------
Total cash & equivalents 7,986,553 12,473 7,999,026
Accounts receivable - trade 205,743 105,006 310,749
Accounts receivable - other 54,605 54,605
Prepaids 128,407 128,407
Intercompany (4,417,821) 4,417,821 0
------------------------------------------------
Total current assets 3,957,487 4,535,300 8,492,787
Other assets 132,832 11,202 144,034
------------------------------------------------
Total assets 4,090,319 4,546,502 8,636,821
================================================
Liabilities:
Accounts payable-trade 159,470 159,470
Accrued expenses 823,691 72,700 896,391
Accrued compensation 50,789 50,789
------------------------------------------------
Total current liabilities 1,033,950 72,700 1,106,650
Prepetition liabilities:
Imperial debt 41,361 41,361
Accounts payable 3,527,638 52,273 3,579,911
Accrued expenses 719,400 260,999 980,399
Accrued compensation 211,744 341,276 553,020
Long-term debt 1,394,982 2,449,087 3,844,069
------------------------------------------------
Total Prepetition liabilities 5,895,125 3,103,635 8,998,760
Total liabilities 6,929,075 3,176,335 10,105,410
Shareholders' equity:
Common stock 477,549 477,549
Paid in capital 81,216,945 64,965,951 146,182,896
1/1/97 deficit (86,167,711) (63,569,574) (149,737,285)
Current year income/(loss) 1,634,461 (26,210) 1,608,251
------------------------------------------------
Total equity (2,838,756) 1,370,167 (1,468,589)
Total liab. & equity 4,090,319 4,546,502 8,636,821
================================================
See accompanying notes to unaudited condensed consolidated financial statements
<PAGE>
biosys, inc. and Subsidiaries
Unaudited Condensed Consolidated Statement of Operations
For the Month Ended February 28, 1997
(CGI) Total Company
biosys Crop Consol
------------------------------------------------
Revenues:
Product
Kleentek
BCS
Intercompany
------------------------------------------------
Gross revenues
Discounts
Sales returns
------------------------------------------------
Net revenues
COGS Product
COGS Kleentek
------------------------------------------------
Total cost of goods
Gross profit
Operating expenses 173,888 3,280 177,168
------------------------------------------------
Operating income (loss) (173,888) (3,280) (177,168)
Other income (exp)
Misc. income 1,363 1,363
Interest income 23,232 23,232
Interest expense
Reorganization costs (65,000) (65,000)
Loss on sale of assets* (451,205) (451,205)
Transaction gain/loss
------------------------------------------------
Total other inc (exp) (491,610) (491,610)
------------------------------------------------
Net income (loss) (665,498) (3,280) (668,778)
================================================
*Provision for irrecoverable amounts related to AgriDyne's investment in Indian
joint venture.
See accompanying notes to unaudited condensed consolidated financial statements
<PAGE>
<TABLE>
biosys, inc. and Subsidiaries
Unaudited Condensed Consolidated Statement of Operations
For the Two Months Ended February 28, 1997
<CAPTION>
(CGI) Total Total Company
biosys Crop U.S. BCS Elim Consol
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Product 275,508 275,508 275,508
Kleentek
BCS 149,824 3,880 145,944
Intercompany
---------------------------------------------------------------------------------------------------------
Gross revenues 275,508 275,508 149,824 3,880 421,452
Discounts (48,011) (48,011) (48,011)
Sales returns (18,000) (18,000) (18,000)
---------------------------------------------------------------------------------------------------------
Net revenues 209,497 209,497 149,824 3,880 355,441
COGS Product 241,534 241,534 170,398 3,880 408,052
COGS Kleentek
---------------------------------------------------------------------------------------------------------
Total cost of goods 241,534 241,534 170,398 3,880 408,052
Gross profit (32,037) (32,037) (20,574) 0 (52,611)
Operating expenses 661,845 22,460 684,305 118,223 802,528
---------------------------------------------------------------------------------------------------------
Operating income (loss) (693,882) (22,460) (716,342) (138,797) (855,139)
Other income (exp)
Misc. income 9,813 9,813 9,813
Interest income 39,477 39,477 39,477
Interest expense (23,368) (23,368) (23,368)
Reorganization costs (73,323) (3,750) (77,073) (77,073)
Gain on sale of assets 2,375,744 2,375,744 135,072 2,510,816
Transaction gain/loss 3,725 3,725
---------------------------------------------------------------------------------------------------------
Total other inc (exp) 2,328,343 (3,750) 2,324,593 138,797 2,463,390
---------------------------------------------------------------------------------------------------------
Net income (loss) 1,634,461 (26,210) 1,608,251 0 0 1,608,251
=========================================================================================================
See accompanying notes to unaudited condensed consolidated financial statements
</TABLE>
<PAGE>
Notes to Unaudited Condensed Consolidated Financial Statements
1. biosys, inc. (the "Company") and its wholly-owned subsidiaries, Crop Genetics
International Corporation and AgriDyne Technologies, Inc. (collectively, the
"Debtors"), filed for bankruptcy under Chapter 11 of the Bankruptcy Code on
September 27, 1996, and are operating as debtors-in-possession pursuant to the
federal bankruptcy laws. On January 17, 1997, the Debtors sold substantially all
of their assets to Thermo Trilogy Corporation. The Debtors ceased the
manufacture and sale of commercial products concurrent with this sale of assets.
The proceeds of the Debtors' sale of assets will be distributed to the Debtors'
creditors in accordance with the priorities established under the bankruptcy
laws and the Debtors do not expect that there will be any funds remaining for
the Debtor's equity holders, whether preferred or common, after distribution to
secured creditors, administrative and priority claimants, and unsecured
creditors.
2. The accompanying unaudited condensed consolidated financial statements have
been prepared using the historical cost basis of accounting. Any necessary
adjustments to the historical cost basis due to the Debtors bankruptcy as
described in note 1. above, including the application of the liquidation basis
of accounting, have not been considered in the preparation of the unaudited
condensed consolidated financial statements. These adjustments, if any, could be
material to the Debtors' consolidated financial statements.
3. The accompanying unaudited condensed consolidated financial statements do not
reflect all of the claims asserted against the Debtors by purported creditors in
their bankruptcy cases, the allowance and/or priority of which the Debtors may
challenge.
4. In light of the Company's status as a debtor-in-possession and the sale of
substantially all the Debtors' assets on January 17, 1997, the Company has
determined to cease filing periodic reports under Section 13(a) of the
Securities Exchange Act of 1934. Rather, the Company has determined to file
under cover of Form 8-K with the Securities and Exchange Commission (the
"Commission") copies of all financial reports that the Debtors are required to
file with the Bankruptcy Court and the United States Trustee and to report under
cover of Form 8-K material developments relating to the distribution to
creditors of amounts realized from the sale of the Debtors' assets, including
the aggregate amounts and completion of such distributions. The Company
currently has pending before the staff of the Commission a request not to
recommend enforcement action to the Commission for the Company's implementation
of the above modified reporting procedures in lieu of continued compliance with
Section 13(a) of the Securities Exchange Act. No formal response has been
received from the staff of the Commission relative to the Company's request.
