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)
April 23, 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 9 pages.
<PAGE>
Item 5. Other Events
On March 24, 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 and year ended
December 31, 1996 with the United States Bankruptcy Court for the District of
Maryland (the "Bankruptcy Court").
On April 23, 1997, the Debtors filed a Monthly Operating Report for the
month ended January 31, 1997 with the Bankruptcy Court.
Included in the Monthly Operating Reports filed with the Bankruptcy
Court are unaudited condensed consolidated balance sheets and statements of
operations for the Debtors for the respective reporting periods. Annexed hereto
are the unaudited condensed consolidated balance sheets and statements of
operations for the months ended December 31, 1996 and January 31, 1997, and the
year ended December 31, 1996, 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: April 24, 1997 By: /s/ Michael R.N. Thomas
-------------------------
Michael R.N. Thomas
Vice President, Chief
Financial Officer and
Secretary/Treasurer
<PAGE>
<TABLE>
biosys, inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheet
December 31, 1996
<CAPTION>
(CGI) Total Total Company
biosys Crop U.S. BCS Elim Consol
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Current Assets:
Cash and Equivalents 475,701 19,173 494,874 378,239 873,113
Short Term Investment 88,237 0 88,237 0 88,237
-----------------------------------------------------------------------------------------
Total Cash & S.T.Inv. 563,938 19,173 583,111 378,239 0 961,350
Accounts Receivable - Trade 658,597 389,794 1,048,391 1,323,993 2,372,384
Accounts Receivable - Other (4,776) (4,195) (8,971) (8,971)
Inventories 2,153,041 449,907 2,602,948 1,058,741 3,661,689
Deposits/Prepaids 459,225 11,202 470,427 27,088 497,515
Investment in Sub and JV 1,616,858 0 1,616,858 0 1,493,623 123,235
Intercompany BCS 575,687 14,570 590,257 (590,257) 0
Intercompany CGI (2,456,187) 2,456,187 0 0 0
-----------------------------------------------------------------------------------------
Total Current Assets 3,566,383 3,336,638 6,903,021 2,197,804 1,493,623 7,607,202
Property & Equipment:
Machinery & Equipment 7,175,135 2,636,985 9,812,120 1,649,493 11,461,613
Furniture and Fixtures 494,579 0 494,579 113,821 608,400
Leasehold Improvements 939,365 2,999,785 3,939,150 162,260 4,101,410
-----------------------------------------------------------------------------------------
Subtotal: Prop. & Equipment 8,609,078 5,636,770 14,245,848 1,925,574 0 16,171,422
Less: Acc. Dep. (4,659,281) (4,390,140) (9,049,421) (1,005,082) (10,054,503)
-----------------------------------------------------------------------------------------
Property & Equip.- Net 3,949,797 1,246,630 5,196,427 920,492 0 6,116,919
Intangible Assets 380,000 0 380,000 380,000
Other assets 453,164 0 453,164 453,164
-----------------------------------------------------------------------------------------
Total Other Assets 833,164 0 833,164 0 0 833,164
Total Assets 8,349,344 4,583,268 12,932,612 3,118,296 1,493,623 14,557,285
=========================================================================================
Liabilities:
Accounts Payable-Trade 115,973 115,973 2,396,274 2,512,247
Accrued Expenses 880,568 82,024 962,592 962,592
Deferred Revenue 214,105 214,105 214,105
Accrued Compensation 120,129 120,129 120,129
-----------------------------------------------------------------------------------------
Total Current Liabilities 1,330,775 82,024 1,412,799 2,396,274 0 3,809,073
Prepetition liabilities:
Imperial Debt 3,561,842 3,561,842 3,561,842
Accounts Payable 5,431,697 52,273 5,483,970 5,483,970
Accrued Expenses 798,487 603,507 1,401,994 1,401,994
Accrued Compensation 304,778 304,778 304,778
Long-term Debt 1,394,982 2,449,086 3,844,068 3,844,068
-----------------------------------------------------------------------------------------
Total Prepetition Liabilities11,491,786 3,104,866 14,596,652 0 0 14,596,652
Total Liabilities 12,822,561 3,186,890 16,009,451 2,396,274 0 18,405,725
Shareholders' Equity:
Common Stock 477,549 477,549 477,549
Paid in Capital 81,216,945 64,965,951 146,182,896 146,182,896
1/1/96 Deficit (63,361,480) (64,168,829) (127,530,309) (1,062,576) (128,592,885)
Current Year Income/(Loss) (22,806,231) 599,256 (22,206,975) 292,417 (21,914,558)
BCS Equity at 4/30/93 0 0 1,493,623 1,493,623 0
CTA 0 0 (1,442) (1,442)
-----------------------------------------------------------------------------------------
Total Equity (4,473,217) 1,396,378 (3,076,839) 722,022 1,493,623 (3,848,440)
Total Liabil. & Equity 8,349,344 4,583,268 12,932,612 3,118,296 1,493,623 14,557,285
=========================================================================================
See accompanying notes to unaudited condensed consolidated financial statements
</TABLE>
<PAGE>
<TABLE>
biosys, inc. and Subsidiaries
Unaudited Condensed Consolidated Statement of Operations
For the Month Ended December 31, 1996
<CAPTION>
(CGI) Total Total Company
biosys Crop U.S. BCS Elim Consol
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Nematodes 31,896 31,896 31,896
AgriSense 464,806 464,806 464,806
IVP 98,646 98,646 98,646
Kleentek 0 0
AZDCN 46,400 46,400 46,400
Contract Manufacturing 108,920 108,920 108,920
Contract R & D 64,584 64,584 64,584
BCS 0 485,808 2,266 483,542
Sales to CGI 0 0 0
Sales to BCS 0 0 0
-----------------------------------------------------------------------------------------
Gross Sales 815,252 0 815,252 485,808 2,266 1,298,794
External Sales 815,252 0 815,252
Cash Discounts (17,479) (17,479) (17,479)
Sales Returns (126,120) (126,120) 0 0 (126,120)
-----------------------------------------------------------------------------------------
Net Sales 671,653 0 671,653 485,808 2,266 1,155,195
External Net Sales 671,653 0 671,653
COGS Product 436,261 10,111 446,372 78,077 2,266 522,183
COGS Contract Mfg. 58,817 58,817 58,817
COGS - Sales to BCS 0 0 0
Over/Under Absorption 596,425 596,425 596,425
Product Freight Out 22,117 22,117 22,117
PPV / Material Variance 3,266 3,266 3,266
-----------------------------------------------------------------------------------------
Total Cost of Goods 1,116,886 10,111 1,126,997 78,077 2,266 1,202,808
External Cost of Goods 1,116,886 10,111 1,126,997
Gross Profit (445,233) (10,111) (455,344) 407,731 0 (47,613)
External Gross Profit (445,233) (10,111) (455,344)
Operating Expenses:
Marketing/Sales 119,565 119,565 55,689 175,254
Research & Dev. 328,633 328,633 328,633
Field mgmt. - Kleentek 45,086 45,086 45,086
Product Development 101,672 101,672 13,464 115,136
G&A 225,153 225,153 306,770 531,923
-----------------------------------------------------------------------------------------
Total Oper. Expenses 775,023 45,086 820,109 375,923 0 1,196,032
-----------------------------------------------------------------------------------------
Income/(Loss) Oper. (1,220,256) (55,197) (1,275,453) 31,808 0 (1,243,645)
Other Income & Expenses:
Misc. Income (14,856) 6,366 (8,490) (8,490)
Interest Income 0 0 0 0
Interest Expense (7,075) (18,833) (25,908) 6,908 (19,000)
Reorganization costs (297,302) 0 (297,302) (297,302)
Merger costs (100,000) 2,946 (97,054)
Write Off of Goodwill - Agrid(3,874,702) 0 (3,874,702) (3,874,702)
Transaction Gain/Loss 0 0 0 (2,895) (2,895)
-----------------------------------------------------------------------------------------
Total Other Expenses (4,293,935) (9,521) (4,303,456) 4,013 0 (4,299,443)
-----------------------------------------------------------------------------------------
Net Income/(Loss) (5,514,191) (64,718) (5,578,909) 35,821 0 (5,543,088)
=========================================================================================
See accompanying notes to unaudited condensed consolidated financial statements
</TABLE>
<PAGE>
<TABLE>
biosys, inc. and Subsidiaries
Unaudited Condensed Consolidated Statement of Operations
For the Year Ended December 31, 1996
<CAPTION>
(CGI) Total Total Company
biosys Crop U.S. BCS Elim Consol
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Nematodes 3,550,066 3,550,066 3,550,066
AgriSense 3,348,799 3,348,799 3,348,799
IVP 102,822 548,301 651,123 651,123
Kleentek 2,038,152 2,038,152 2,038,152
AZDCN 838,643 838,643 838,643
Contract Manufacturing 3,015,337 3,015,337 3,015,337
Contract R & D 903,155 903,155 903,155
BCS 0 10,670,325 537,655 10,132,670
Sales to CGI 0 0 0
Sales to BCS 1,942,281 1,942,281 1,942,281 0
-------------------------------------------------------------------------------------------------
Gross Sales 13,701,103 2,586,453 16,287,556 10,670,325 2,479,936 24,477,945
External Sales 11,758,822 2,586,453 14,345,275
Cash Discounts (187,577) (187,577) (187,577)
Sales Returns (540,753) (504) (541,257) 0 0 (541,257)
-------------------------------------------------------------------------------------------------
Net Sales 12,972,773 2,585,949 15,558,722 10,670,325 2,479,936 23,749,111
External Net Sales 11,030,492 2,585,949 13,616,441
COGS Product 6,522,046 1,177,621 7,699,667 7,402,490 582,903 14,519,254
COGS Contract Mfg. 1,628,014 1,628,014 1,628,014
COGS - Sales to BCS 1,897,033 1,897,033 1,897,033 0
Over/Under Absorption 3,986,849 3,986,849 3,986,849
Product Freight Out 485,146 485,146 485,146
PPV / Material Variance 225,355 225,355 225,355
-------------------------------------------------------------------------------------------------
Total Cost of Goods 14,744,443 1,177,621 15,922,064 7,402,490 2,479,936 20,844,618
External Cost of Goods 12,847,410 1,177,621 14,025,031
Gross Profit (1,771,670) 1,408,328 (363,342) 3,267,835 0 2,904,493
External Gross Profit (1,816,918) 1,408,328 (408,590)
Operating Expenses:
Marketing/Sales 2,010,766 2,010,766 1,097,015 3,107,781
Research & Dev. 3,260,528 3,260,528 3,260,528
Field mgmt. - Kleentek 740,956 740,956 740,956
Product Development 1,285,775 1,285,775 397,431 1,683,206
G&A 2,493,696 2,493,696 1,233,428 3,727,124
-------------------------------------------------------------------------------------------------
Total Oper. Expenses 9,050,765 740,956 9,791,721 2,727,874 0 12,519,595
-------------------------------------------------------------------------------------------------
Income/(Loss) Oper. (10,822,435) 667,372 (10,155,063) 539,961 0 (9,615,102)
Other Income & Expenses:
Misc. Income 11,032 9,008 20,040 20,040
Interest Income 28,661 252 28,913 28,913
Interest Expense (952,035) (230,322) (1,182,357) (209,134) (1,391,491)
Reorganization costs (888,968) 0 (888,968) (888,968)
Merger costs (307,784) 152,946 (154,838)
Write Off of Goodwill - Agridyne (9,874,702) 0 (9,874,702) (9,874,702)
Transaction Gain/Loss 0 0 0 (38,410) (38,410)
-------------------------------------------------------------------------------------------------
Total Other Expenses (11,983,796) (68,116) (12,051,912) (247,544) 0 (12,299,456)
-------------------------------------------------------------------------------------------------
Net Income/(Loss) (22,806,231) 599,256 (22,206,975) 292,417 0 (21,914,558)
=================================================================================================
See accompanying notes to unaudited condensed consolidated financial statements
</TABLE>
<PAGE>
<TABLE>
biosys, inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheet
January 31, 1997
<CAPTION>
(CGI) Total Total Company
biosys Crop U.S. BCS Elim Consol
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Current Assets:
Cash and Equivalents 6,780,145 14,936 6,795,081 6,795,081
Restricted Cash 1,009,774 1,009,774 1,009,774
Short Term Investment 88,237 88,237 88,237
--------------------------------------------------------------------------------------------
Total Cash & S.T.Inv. 7,878,156 14,936 7,893,092 0 0 7,893,092
Accounts Receivable - Trade 484,428 120,263 604,691 604,691
Accounts Receivable - Other (2,259) (1,391) (3,650) (3,650)
Inventories 0 0
Prepaids 148,593 148,593 148,593
Investment in JV 123,235 123,235 123,235
Intercompany BCS 0 0
Intercompany CGI (4,404,772) 4,404,772 0 0
--------------------------------------------------------------------------------------------
Total Current Assets 4,227,381 4,538,580 8,765,961 0 0 8,765,961
Property & Equipment:
Property & Equipment 0 0
Less: Acc. Dep. 0 0
--------------------------------------------------------------------------------------------
Property & Equip.- Net 0 0 0 0 0 0
Intangible Assets 0 0
Other assets 460,802 11,202 472,004 472,004
--------------------------------------------------------------------------------------------
Total Other Assets 460,802 11,202 472,004 0 472,004
Total Assets 4,688,183 4,549,782 9,237,965 0 0 9,237,965
============================================================================================
Liabilities:
Accounts Payable-Trade 83,585 83,585 83,585
Accrued Expenses 823,691 72,700 896,391 896,391
Deferred Revenue 0 0
Accrued Compensation 63,632 63,632 63,632
--------------------------------------------------------------------------------------------
Total Current Liabilities 970,908 72,700 1,043,608 0 0 1,043,608
Prepetition liabilities:
Imperial Debt 41,361 41,361 41,361
Accounts Payable 3,527,832 52,273 3,580,105 3,580,105
Accrued Expenses 714,614 260,999 975,613 975,613
Accrued Compensation 211,744 341,276 553,020 553,020
Long-term Debt 1,394,982 2,449,087 3,844,069 3,844,069
--------------------------------------------------------------------------------------------
Total Prepetition Liabilities 5,890,533 3,103,635 8,994,168 0 8,994,168
Total Liabilities 6,861,441 3,176,335 10,037,776 0 0 10,037,776
Shareholders' Equity:
Common Stock 477,549 477,549 477,549
Paid in Capital 81,216,945 64,965,951 146,182,896 146,182,896
1/1/97 Deficit (86,167,711) (63,569,574) (149,737,285) (149,737,285)
Current Year Income/(Loss) 2,299,959 (22,930) 2,277,029 2,277,029
BCS Equity at 4/30/93 0 0
CTA 0 0
--------------------------------------------------------------------------------------------
Total Equity (2,173,258) 1,373,447 (799,811) 0 0 (799,811)
Total Liabil. & Equity 4,688,183 4,549,782 9,237,965 0 0 9,237,965
============================================================================================
See accompanying notes to unaudited condensed consolidated financial statements
</TABLE>
<PAGE>
<TABLE>
biosys, inc. and Subsidiaries
Unaudited Condensed Consolidated Statement of Operations
For the Month Ended January 31, 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 0 0
BCS 0 149,824 3,880 145,944
Intercompany 0 0
--------------------------------------------------------------------------------------------
Gross Sales 275,508 0 275,508 149,824 3,880 421,452
Cash Discounts (15,906) (15,906) (15,906)
Sales Returns (18,000) (18,000) (18,000)
--------------------------------------------------------------------------------------------
Net Sales 241,602 0 241,602 149,824 3,880 387,546
COGS Product 241,159 241,159 170,398 3,880 407,677
COGS Kleentek 0 0
--------------------------------------------------------------------------------------------
Total Cost of Goods 241,159 0 241,159 170,398 3,880 407,677
Gross Profit 443 0 443 (20,574) 0 (20,131)
Operating Expenses 520,437 19,180 539,617 118,223 0 657,840
--------------------------------------------------------------------------------------------
Income/(Loss) Oper. (519,994) (19,180) (539,174) (138,797) 0 (677,971)
Other Income & Expenses:
Misc. Income 8,450 8,450 8,450
Interest Income 16,245 16,245 16,245
Interest Expense (23,368) (23,368) (23,368)
Reorganization costs (8,323) (3,750) (12,073) (12,073)
Gain on sale of assets 2,826,949 2,826,949 135,072 2,962,021
Write Off of Goodwill - Agridyne 0 0 0
Transaction Gain/Loss 0 0 3,725 3,725
--------------------------------------------------------------------------------------------
Total Other Expenses 2,819,953 (3,750) 2,816,203 138,797 0 2,955,000
--------------------------------------------------------------------------------------------
Net Income/(Loss) 2,299,959 (22,930) 2,277,029 0 0 2,277,029
============================================================================================
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.
