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)
June 11, 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.)
10015 Old Columbia Road, Suite H-120, Columbia, Maryland 21046
(Address of principal executive offices) (Zip Code)
410-290-6265
(Registrant's telephone number, including area code)
This Current Report contains 7 pages.
<PAGE>
Item 5. Other Events
On June 11, 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 March 31,
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 March 31, 1997
and statements of operations for the Debtors for the month ended March 31, 1997
and three-month period ended March 31, 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: June 12, 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
March 31, 1997
(CGI) Total Company
biosys Crop Consol
----------------------------------------------------------
Current assets:
Cash and equivalents 6,630,883 12,453 6,643,336
Restricted cash 1,009,774 1,009,774
Short-term investment 88,237 88,237
----------------------------------------------------------
Total cash & equivalents 7,728,894 12,453 7,741,347
Accounts receivable - trade 132,682 101,283 233,965
Accounts receivable - other 183,533 183,533
Prepaids 32,005 32,005
Intercompany (4,421,545) 4,421,545 0
----------------------------------------------------------
Total current assets 3,655,569 4,535,281 8,190,850
Other assets 106,096 11,202 117,298
----------------------------------------------------------
Total assets 3,761,665 4,546,483 8,308,148
==========================================================
Liabilities:
Accounts payable-trade 228,678 228,678
Accrued expenses 820,000 76,450 896,450
Accrued compensation 34,228 34,228
----------------------------------------------------------
Total current liabilities 1,082,906 76,450 1,159,356
Prepetition liabilities:
Accounts payable 3,640,790 52,273 3,693,063
Accrued expenses 724,185 260,999 985,184
Accrued compensation 154,102 341,276 495,378
Long-term debt 1,394,982 2,449,087 3,844,069
----------------------------------------------------------
Total Prepetition liabilities 5,914,059 3,103,635 9,017,694
Total liabilities 6,996,965 3,180,085 10,177,050
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) 1,237,917 (29,979) 1,207,938
----------------------------------------------------------
Total equity (3,235,300) 1,366,398 (1,868,902)
Total liab. & equity 3,761,665 4,546,483 8,308,148
==========================================================
See accompanying notes to unaudited condensed consolidated financial statements
<PAGE>
biosys, inc. and Subsidiaries
Unaudited Condensed Consolidated Statement of Operations
For the Month Ended March 31, 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* 303,188 3,769 306,957
----------------------------------------------------------
Operating income (loss) (303,188) (3,769) (306,957)
Other income (exp)
Misc. income (2,697) (2,697)
Interest income 25,165 25,165
Interest expense (62) (62)
Reorganization costs (115,762) (115,762)
Loss on sale of assets
Transaction gain/loss
----------------------------------------------------------
Total other inc (exp) (93,356) (93,356)
----------------------------------------------------------
Net income (loss) (396,544) (3,769) (400,313)
==========================================================
* Includes premium paid of $192,000 for new directors and officers liability
insurance coverage as agreed with creditors committee. This premium provides
coverage for a forty month period, however the full charge has been taken to
operations in the period paid.
See accompanying notes to unaudited condensed consolidated financial statements
<PAGE>
<TABLE>
biosys, inc. and Subsidiaries
Unaudited Condensed Consolidated Statement of Operations
For the Three Months Ended March 31, 1997
<CAPTION>
(CGI) Total Total Company
biosys Crop U.S. BCS Elim Consol
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Product 222,794 222,794 222,794
Kleentek
BCS 149,824 3,880 145,944
Intercompany
---------------------------------------------------------------------------------------------------------
Gross revenues 222,794 222,794 149,824 3,880 368,738
Discounts (48,374) (48,374) (48,374)
Sales returns (18,000) (18,000) (18,000)
---------------------------------------------------------------------------------------------------------
Net revenues 156,420 156,420 149,824 3,880 302,364
COGS Product 241,561 241,561 170,398 3,880 408,079
COGS Kleentek
---------------------------------------------------------------------------------------------------------
Total cost of goods 241,561 241,561 170,398 3,880 408,079
Gross profit (85,141) (85,141) (20,574) 0 (105,715)
Operating expenses 911,928 26,229 938,157 118,223 1,056,380
---------------------------------------------------------------------------------------------------------
Operating income (loss) (997,069) (26,229) (1,023,298) (138,797) (1,162,095)
Other income (exp)
Misc. income 7,116 7,116 7,116
Interest income 64,642 64,642 64,642
Interest expense (23,431) (23,431) (23,431)
Reorganization costs (189,085) (3,750) (192,835) (192,835)
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) 2,234,986 (3,750) 2,231,236 138,797 2,370,033
---------------------------------------------------------------------------------------------------------
Net income (loss) 1,237,917 (29,979) 1,207,938 0 0 1,207,938
=========================================================================================================
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.
