<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________
FORM 8 - K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities and Exchange Act of 1934
Date of Report (Date of earliest event reported) FEBRUARY 28, 1997
------------------------
FOCUS SURGERY, INC.
--------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
DELAWARE 0-22136 77-0332937
--------------------------------------------------------------------------
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
895 SAN MATEO DRIVE, MENLO PARK CA 94025
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (415) 328-2614
------------------------
N/A
--------------------------------------------------------------------------
(Former name or former address, if changed since last report.)
<PAGE>
Item 3. Bankruptcy or Receivership
On February 9, 1996, the Registrant filed for protection under Chapter
11 of the federal bankruptcy laws in the United States Bankruptcy Court,
Northern District of California, Oakland division pursuant to which the
Registrant's existing directors and officers will continue in possession but
subject to the supervision and orders of the bankruptcy court.
The Company is currently reviewing the claims of its various creditors.
It is unclear at this time whether there will be any funds available for
distribution to shareholders. This information is currently anticipated to
be available in the first quarter of 1997, although this schedule is subject
to change. Once this information has been determined, the Company may file a
plan of reorganization with the bankruptcy court.
Item 7. Financial Statements and Exhibits
Exhibit No. Description
99.13 Summary of Financial Status of the Registrant for the month
ended February 1997, as filed with the United States Bankruptcy
Court, Northern District of California, Oakland division.
<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.
Focus Surgery, Inc.
----------------------------------------
(Registrant)
Date: April 21, 1997 By: /s/ RICK REDETT
------------------------------------
Name: Rick Redett
Title: President and Chief Executive Officer
<PAGE>
Exhibit 99.13
<PAGE>
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
IN RE: FOCUS SURGERY, INC., DEBTOR. | Case No. 96-41107-N
| ----------------
Employer's Tax Identification | CHAPTER 11
No.: 77-0332937 | MONTHLY OPERATING REPORT
| (GENERAL BUSINESS CASE)
- -----------------------------------------
SUMMARY OF FINANCIAL STATUS
MONTH ENDED Feb-97
-----------------------
1. Debtor in possession (or trustee) hereby submits this Monthly
Operating Report on the Accrual Basis of accounting (or if checked here
___ the Office of the U.S. Trustee or the Court has approved the Cash
Basis of Accounting for the Debtor). Dollars reported in ($ _____).
<TABLE>
<CAPTION>
END OF END OF AS OF
CURRENT PRIOR PETITION
2. ASSET/LIABILITY SUMMARY MONTH MONTH FILING
--------------- ------------- --------------
<S> <C> <C> <C>
Current Assets (Market Value) $771,408 $871,779 $ 502,204
--------------- ------------- --------------
Total Assets (Market Value) $771,408 $871,779 $2,152,204
--------------- ------------- --------------
Current Liabilities $ 73,044 $155,060
--------------- ------------- --------------
Total Liabilities $775,357 $857,372 $ 831,829
--------------- ------------- --------------
PETITION
CURRENT PRIOR DATE TO
3. STATEMENT OF CASH RECEIPTS & DISBURSEMENTS FOR MONTH MONTH MONTH MONTH END
--------------- ------------- --------------
a. Total Receipts $ 387 $ 5,006 $1,465,517
--------------- ------------- --------------
b. Total Disbursements $ 98,998 $ 35,250 $ 967,338
--------------- ------------- --------------
c. Excess (Deficiency) of Receipts Over Disbursements (a - b) ($98,611) ($30,244) $ 498,180
--------------- ------------- --------------
d. Cash Balance Beginning of Month $616,365 $646,609
--------------- -------------
e. Cash Balance End of Month (c + d) $517,754 $616,365
--------------- -------------
--------------- -------------
4. POST-PETITION LIABILITIES & RECEIVABLES RECEIVABLES LIABILITIES
--------------- --------------
Balance at End of Previous Month $ 155,060
--------------- --------------
Balance at End of Current Month $ 73,044
--------------- --------------
5. PAST DUE POST-PETITION LIABILITIES
Balance at End of Previous Month (over 30 days) $ 29,073
--------------
Balance at End of Current Month (over 30 days) $ 27,668
--------------
YES NO
--------------- -------------
6. Are all federal, state, and local taxes current? (if no, attach
schedule of unpaid items) X
--------------- -------------
7. Have any payments been made to pre-petition creditors, other than
payments in the normal course to secured creditors or lessors? (if
yes, attach listing including date of payment, amount of payment and
name of payee) X
--------------- -------------
8. Have any payments been made to officers, insiders, shareholders,
relatives? (if yes, attach listing including date of payment, amount
and reason for payment, and name of payee) X
--------------- -------------
9. Have any payments been made to professionals? (if yes, attach
listing including date of payment, amount of payment and name of
payee) X
--------------- -------------
10.If you answered yes to line 7,8, or 9, were all such payments
approved by the court? N/A
--------------- -------------
11.Is the estate insured for replacement cost of assets and for general liability? X
--------------- -------------
12.Are U.S. Trustee quarterly fees current? X
--------------- -------------
I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE REVIEWED THE ABOVE
SUMMARY AND ATTACHED FINANCIAL STATEMENTS, AND AFTER MAKING REASONABLE
INQUIRY BELIEVE THAT THESE DOCUMENTS ARE CORRECT.
</TABLE>
Date: April 10, 1997 /S/ Rick Redett
------------------------------- -----------------------------
Responsible Individual
<PAGE>
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED Feb-97
------------
($ )
<TABLE>
<CAPTION>
ASSETS
FROM SCHEDULES MARKET VALUE
---------------- --------------
<S> <C> <C>
CURRENT ASSETS
1 Cash and cash equivalents - unrestricted $517,754
--------------------
2 Cash and cash equivalents - restricted
--------------------
3 Accounts receivable (net) A $248,000
--------------------
4 Inventory B $0
--------------------
5 Prepaid expenses $2,490
--------------------
6 Other: Interest receivable $569
------------------------------------------------------ --------------------
7 Payroll taxes $2,596
------------------------------------------------------------- --------------------
8 TOTAL CURRENT ASSETS $771,408
--------------------
PROPERTY AND EQUIPMENT (MARKET VALUE)
9 Real property C $0
--------------------
10 Machinery and equipment D $0
--------------------
11 Furniture and fixtures D $0
--------------------
12 Office equipment D $0
--------------------
13 Leasehold improvements D $0
--------------------
14 Vehicles D $0
--------------------
15 Other: D
------------------------------------------------------------- --------------------
16 D
------------------------------------------------------------- --------------------
17 D
------------------------------------------------------------- --------------------
18 D
------------------------------------------------------------- --------------------
19 D
------------------------------------------------------------- --------------------
20 TOTAL PROPERTY AND EQUIPMENT $0
--------------------
OTHER ASSETS
21 Patents, copyrights, and other intellectual property $0
------------------------------------------------------------- --------------------
22 All technology sold to Takai Hospital in July 1996.
------------------------------------------------------------- --------------------
23
------------------------------------------------------------- --------------------
24
------------------------------------------------------------- --------------------
25 TOTAL OTHER ASSETS $0
--------------------
26 TOTAL ASSETS $771,408
--------------------
--------------------
</TABLE>
NOTE:
Indicate the method used to estimate the market value of assets
(e.g., appraisals; familiarity with comparable market prices, etc.)
and the date the value was determined.
-------------------------------------------------------------------
-------------------------------------------------------------------
-------------------------------------------------------------------
-------------------------------------------------------------------
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<PAGE>
LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($ )
<TABLE>
<CAPTION>
LIABILITIES FROM SCHEDULES
POST-PETITION ----------------
<S> <C> <C>
CURRENT LIABILITIES
27 Salaries and wages
------------------------
28 Payroll taxes
------------------------
29 Real and personal property taxes
------------------------
30 Income taxes
------------------------
31 Notes payable (short term)
------------------------
32 Accounts payable (trade) A $27,668
------------------------
33 Real property lease arrearage
------------------------
34 Personal property lease arrearage
------------------------
35 Accrued professional fees $45,376
------------------------
36 Current portion of long-term debt (due within 12 months)
------------------------
37 Other: Other accruals
-------------------------------------------------------------- ------------------------
38
-------------------------------------------------------------- ------------------------
39
-------------------------------------------------------------- ------------------------
40 TOTAL CURRENT LIABILITIES $73,044
------------------------
41 LONG-TERM DEBT, NET OF CURRENT PORTION
------------------------
42 TOTAL POST-PETITION LIABILITIES $73,044
------------------------
PRE-PETITION LIABILITIES (ALLOWED AMOUNT)
------------------------
43 Secured claims E $115,778
------------------------
44 Priority unsecured claims E $0
------------------------
45 General unsecured claims E $586,534
------------------------
46 TOTAL PRE-PETITION LIABILITIES $702,313
------------------------
47 TOTAL LIABILITIES $775,357
------------------------
EQUITY (DEFICIT)
48
-------------------------------------------------------------- ------------------------
49
-------------------------------------------------------------- ------------------------
50
-------------------------------------------------------------- ------------------------
51
-------------------------------------------------------------- ------------------------
52 Market value adjustment
------------------------
53 TOTAL EQUITY (DEFICIT) ($3,949)
------------------------
54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $771,408
------------------------
------------------------
</TABLE>
<PAGE>
SCHEDULES
(GENERAL BUSINESS CASE)
($ )
SCHEDULE A
ACCOUNTS RECEIVABLE(NET)/PAYABLE
<TABLE>
<CAPTION>
ACCOUNTS ACCOUNTS PAYABLE PAST DUE
Receivables and Payables Ageings RECEIVABLE [POST PETITION] POST PETITION DEBT
------------- ------------------ --------------------
<S> <C> <C> <C>
0 -30 Days $0 _
------------- ------------------ |
31-60 Days $0 |
------------- ------------------ |
61-90 Days $0 $411 | $27,668
------------- ------------------ |--------------------
91+ Days $248,000 $27,257 -
------------- ------------------
Total accounts receivable/payable $248,000 $27,668
------------- ------------------
Allowance for doubtful accounts ------------------
-------------
Accounts receivable (net) $248,000
-------------
-------------
SCHEDULE B
INVENTORY/COST OF GOODS SOLD
TYPES AND AMOUNT OF INVENTORY(IES) COST OF GOODS SOLD
---------------------------------- ------------------
INVENTORY(IES) Inventory Beginning of Month
BALANCE AT -------------------------
END OF MONTH
-------------- ADD -
Retail/Restaurants - Net purchases
Product for resale -------------------------
---------------------------- Direct labor
-------------------------
Manufacturing overhead
Distribution - -------------------------
Product for resale Freight in
---------------------------- Other: -------------------------
--------------------
--------------------
Manufacturer -
Raw materials $0
----------------------------
Work-in-progress $0 Less -
----------------------------
Finished goods $0 Inventory End of Month
---------------------------- ----------------------------
Shrinkage
----------------------------
Other - Personal Use
----------------------------------- ----------------------------
Explain
----------------------------------- Cost of Goods Sold $0
----------------------------------- ----------------------------
TOTAL $0 ----------------------------
----------------------------
----------------------------
METHOD OF INVENTORY CONTROL INVENTORY VALUATION METHODS
--------------------------- ---------------------------
Do you have a functioning perpetual inventory system? Indicate by a checkmark method of inventory
valuation used.
Yes X No
----- -----
How often do you take a complete physical inventory? Valuation methods -
FIFO cost X
----------------
Weekly LIFO cost
-------- ----------------
Monthly Lower of cost or
-------- ----------------
Quarterly market X
-------- ----------------
Semi-annually Retail method
-------- ----------------
Annually X
-------- ----------------
Other -
Date of last physical inventory was 12/31/94 Explain
------------------ -------------------------------------
Date of next physical inventory is not scheduled
------------------ -------------------------------------
</TABLE>
<PAGE>
SCHEDULE C
REAL PROPERTY
<TABLE>
<CAPTION>
DESCRIPTION COST MARKET VALUE
- ------------ ---- ------------
<S> <C> <C>
- ----------------------------------------------------- ---------------- ----------------
- ----------------------------------------------------- ---------------- ----------------
- ----------------------------------------------------- ---------------- ----------------
- ----------------------------------------------------- ---------------- ----------------
TOTAL $0 $0
---------------- ----------------
---------------- ----------------
SCHEDULE D
OTHER DEPRECIABLE ASSETS
DESCRIPTION COST MARKET VALUE
- ------------ ---- ------------
MACHINERY & EQUIPMENT -
See listing attached to original petition filing
- -----------------------------------------------------
- All equipment sold to Takai Hospital in July 1996. $0 $0
- ----------------------------------------------------- ---------------- ----------------
- ----------------------------------------------------- ---------------- ----------------
- ----------------------------------------------------- ---------------- ----------------
TOTAL $0 $0
---------------- ----------------
---------------- ----------------
FURNITURE & FIXTURES -
$0
- ----------------------------------------------------- ---------------- ----------------
- ----------------------------------------------------- ---------------- ----------------
- ----------------------------------------------------- ---------------- ----------------
- ----------------------------------------------------- ---------------- ----------------
TOTAL $0 $0
---------------- ----------------
---------------- ----------------
OFFICE EQUIPMENT -
See listing attached to original petition filing -
- ----------------------------------------------------- ---------------- ----------------
All equipment sold to Takai Hospital in July 1996.
- ----------------------------------------------------- ---------------- ----------------
- ----------------------------------------------------- ---------------- ----------------
TOTAL $0 $0
---------------- ----------------
---------------- ----------------
LEASEHOLD IMPROVEMENTS -
None - the Company does not currently lease facilities $0
- ----------------------------------------------------- ---------------- ----------------
- ----------------------------------------------------- ---------------- ----------------
- ----------------------------------------------------- ---------------- ----------------
- ----------------------------------------------------- ---------------- ----------------
TOTAL $0 $0
---------------- ----------------
---------------- ----------------
VEHICLES -
None
- ----------------------------------------------------- ---------------- ----------------
- ----------------------------------------------------- ---------------- ----------------
- ----------------------------------------------------- ---------------- ----------------
- ----------------------------------------------------- ---------------- ----------------
TOTAL $0 $0
---------------- ----------------
---------------- ----------------
SCHEDULE E
PRE-PETITION LIABILITIES
CLAIMED ALLOWED
LIST TOTAL CLAIMS FOR EACH CLASSIFICATION - AMOUNT AMOUNT (b)
---------------------------------------------- ---------------- ----------------
Secured claims (a) $115,778
---------------- ----------------
Priority claims other than taxes $0
---------------- ----------------
Priority tax claims $0
---------------- ----------------
General unsecured claims $586,534
---------------- ----------------
</TABLE>
(a) List total amount of claims even if under secured.
(b) Estimated amount of claim to be allowed after compromise or
litigation. As an example, you are a defendant in a lawsuit
alleging damage of $10,000,000 and a proof of claim is filed in
that amount. You believe that you can settle the case for a
claim of $3,000,000. For Schedule E reporting purposes you
should list $10,000,000 as the Claimed Amount and $3,000,000 as
the Allowed Amount.
SCHEDULE F
RENTAL INCOME INFORMATION
NOT APPLICABLE TO GENERAL BUSINESS CASES.
<PAGE>
STATEMENT OF OPERATIONS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED Feb-97
---------------
$
----------------
<TABLE>
<CAPTION>
CURRENT MONTH
- -------------------------------------- CUMULATIVE NEXT MONTH
ACTUAL FORECAST VARIANCE (CASE TO DATE) FORECAST
------ -------- -------- -------------- --------
REVENUES
<S> <C> <C> <C> <C> <C> <C>
$0 $0 1 Gross Sales
- ----------- ------------- ------------ ---------------- ---------------
$0 $0 2 less: Sales Returns & Allowances
- ----------- ------------- ------------ ---------------- ---------------
$0 $0 $0 3 Net Sales $0
- ----------- ------------- ------------ ---------------- ---------------
$0 $0 4 less: Cost of Goods Sold (Schedule "B")
- ----------- ------------- ------------ ---------------- ---------------
$0 $0 $0 5 Gross Profit $0
- ----------- ------------- ------------ ---------------- ---------------
$0 6 Interest
- ----------- ------------- ------------ ---------------- ---------------
7 Other Income:
- ----------- ------------- ------------ ---------------- ---------------
$0 8 Other income $565
- ----------- ------------- ------------ ------------------------------------------ ---------------- ---------------
$0 9
- ----------- ------------- ------------ ------------------------------------------ ---------------- ---------------
- ----------- ------------- ------------ ---------------- ---------------
$0 $0 $0 10 TOTAL REVENUES $565 $0
- ----------- ------------- ------------ ---------------- ---------------
EXPENSES
$0 11 Compensation to Owner(s)/Officer(s)
- ----------- ------------- ------------ ---------------- ---------------
$0 12 Salaries/Commissions
- ----------- ------------- ------------ ---------------- ---------------
$0 13 Management Fees
- ----------- ------------- ------------ ---------------- ---------------
$0 $0 14 Depreciation $368,860 $0
- ----------- ------------- ------------ ---------------- ---------------
$0 15 Taxes:
- ----------- ------------- ------------ ---------------- ---------------
$0 16 Employer Payroll Taxes
- ----------- ------------- ------------ ---------------- ---------------
$0 17 Real Property Taxes
- ----------- ------------- ------------ ---------------- ---------------
$0 18 Other Taxes
- ----------- ------------- ------------ ---------------- ---------------
$0 19 Other Selling
- ----------- ------------- ------------ ---------------- ---------------
$495 $1,000 $505 20 Other Administrative $22,883
- ----------- ------------- ------------ ---------------- ---------------
$0 21 Interest
- ----------- ------------- ------------ ---------------- ---------------
22 Other Expenses:
------------- ---------------- ---------------
$0 23 Writedown of receivables and other $23,406
- ----------- ------------- ------------ ---------------- ---------------
$0 24 ------------------------------------------
- ----------- ------------- ------------ ---------------- ---------------
$0 25 ------------------------------------------
- ----------- ------------- ------------ ---------------- ---------------
$0 26 ------------------------------------------
- ----------- ------------- ------------ ---------------- ---------------
$0 27 ------------------------------------------
- ----------- ------------- ------------ ---------------- ---------------
$0 28 ------------------------------------------
- ----------- ------------- ------------ ---------------- ---------------
$0 29 ------------------------------------------
- ----------- ------------- ------------ ---------------- ---------------
$0 30 ------------------------------------------
- ----------- ------------- ------------ ---------------- ---------------
------------------------------------------
- ----------- ------------- ------------ ---------------- ---------------
$495 $1,000 $505 31 TOTAL EXPENSES $415,149 $0
- ----------- ------------- ------------ ---------------- ---------------
($495) ($1,000) $505 32 SUBTOTAL ($414,584) $0
- ----------- ------------- ------------ ---------------- ---------------
REORGANIZATION ITEMS
$18,701 $10,000 ($8,701) 33 Professional Fees $216,616 $10,000
- ----------- ------------- ------------ ---------------- ---------------
$0 34 Provisions for Rejected Executory Contracts
- ----------- ------------- ------------ ---------------- ---------------
Interest Earned on Accumulated Cash
($955) ($1,000) ($45) 35 Resulting from Chp 11 Case (10,611) ($1,300)
- ----------- ------------- ------------ ---------------- ---------------
$0 36 Loss from Sale of Equipment, Inventory
and Patents $450,000
- ----------- ------------- ------------ ---------------- ---------------
$114 ($114) 37 Miscellaneous $14,452
- ----------- ------------- ------------ ----------------------------------------- ---------------- ---------------
$0 38 Settlements $642,500 $1,000
- ----------- ------------- ------------ ----------------------------------------- ---------------- ---------------
$17,860 $9,000 ($8,860) 39 TOTAL REORGANIZATION ITEMS $1,312,957 $9,700
- ----------- ------------- ------------ ---------------- ---------------
($18,355) ($10,000) ($8,355) 40 NET PROFIT (LOSS) BEFORE FEDERAL & STATE TAXES ($1,727,541) ($9,700)
- ----------- ------------- ------------ ---------------- ---------------
$0 41 FEDERAL & STATE INCOME TAXES
- ----------- ------------- ------------ ---------------- ---------------
($18,355) ($10,000) ($8,355) 42 NET PROFIT (LOSS) ($1,727,541) ($9,700)
- ----------- ------------- ------------ ---------------- ---------------
- ----------- ------------- ------------ ---------------- ---------------
</TABLE>
EXPLANATION OF VARIANCE TO STATEMENT OF OPERATIONS
(FOR VARIANCES GREATER THAN +/- 10% ONLY)
Professional fees exceeded estimates due to unanticipated patent requirements
and the filing of a report on Form 8-K with the Securities and Exchange
Commission.
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
<PAGE>
SUMMARY OF CASH RECEIPTS AND DISBURSEMENTS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED Feb-97
-------------------
CASH BALANCE BEGINNING OF MONTH $616,365
-----------
-----------
CASH RECEIPTS (1) $387
-----------
CASH DISBURSEMENTS (1) $98,998
-----------
EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS ($98,611)
-----------
CASH BALANCE END OF MONTH $517,754
-----------
-----------
-
RECAPITULATION OF FUNDS HELD AT END OF MONTH
<TABLE>
<CAPTION>
ACCOUNT 1 ACCOUNT 2 ACCOUNT 3
-------------------------- ----------------- ------------------
<S> <C> <C> <C>
BANK Silicon Valley Bank Merrill Lynch Trust acct -
-------------------------- ----------------- ------------------
ACCOUNT TYPE Checking Checking Murray & Murray
-------------------------- ----------------- ------------------
ACCOUNT NO. 3300023699 233-07K66
-------------------------- ----------------- ------------------
ACCOUNT PURPOSE General operating acct. Investment
-------------------------- ----------------- ------------------
BALANCE, END OF MONTH $4,881 $71 $347,227
-------------------------- ----------------- ------------------
ACCOUNT 4 ACCOUNT 5 ACCOUNT 6
-------------------------- ----------------- ------------------
BANK Silicon Valley Bank
-------------------------- ----------------- ------------------
ACCOUNT TYPE Checking
-------------------------- ----------------- ------------------
ACCOUNT NO. 3300023699
-------------------------- ----------------- ------------------
ACCOUNT PURPOSE Money market
-------------------------- ----------------- ------------------
BALANCE, END OF MONTH $165,575
-------------------------- ----------------- ------------------
TOTAL FUNDS ON HAND FOR ALL ACCOUNTS $517,754
--------------------------
--------------------------
</TABLE>
(1) Excluding bank transfers between your accounts.