|
|
|
|
|
|
|
|
|
|
|
|
|
<PAGE>
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) FEBRUARY 28, 1996
--------------------------
FOCUS SURGERY, INC.
- --------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
DELAWARE 0-22136 77-0332937
- --------------------------------------------------------------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
895 SAN MATEO DRIVE, MENLO PARK, CA 94025
- --------------------------------------------------------------------------
(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
- ----------- -----------
99.1 Summary of Financial Status of the Registrant for the month
ended February 1996, as filed with the United States Bankruptcy
Court, Northern District of California, Oakland division.
99.2 Summary of Financial Status of the Registrant for the month
ended March 1996, as filed with the United States Bankruptcy
Court, Northern District of California, Oakland division.
99.3 Summary of Financial Status of the Registrant for the month
ended April 1996, as filed with the United States Bankruptcy
Court, Northern District of California, Oakland division.
99.4 Summary of Financial Status of the Registrant for the month
ended May 1996, as filed with the United States Bankruptcy
Court, Northern District of California, Oakland division.
99.5 Summary of Financial Status of the Registrant for the month
ended June 1996, as filed with the United States Bankruptcy
Court, Northern District of California, Oakland division.
99.6 Summary of Financial Status of the Registrant for the month
ended July 1996, as filed with the United States Bankruptcy
Court, Northern District of California, Oakland division.
99.7 Summary of Financial Status of the Registrant for the month
ended August 1996, as filed with the United States Bankruptcy
Court, Northern District of California, Oakland division.
99.8 Summary of Financial Status of the Registrant for the month
ended September 1996, as filed with the United States Bankruptcy
Court, Northern District of California, Oakland division.
99.9 Summary of Financial Status of the Registrant for the month
ended October 1996, as filed with the United States Bankruptcy
Court, Northern District of California, Oakland division.
<PAGE>
99.10 Summary of Financial Status of the Registrant for the month
ended November 1996, as filed with the United States Bankruptcy
Court, Northern District of California, Oakland division.
99.11 Summary of Financial Status of the Registrant for the month
ended December 1996, as filed with the United States Bankruptcy
Court, Northern District of California, Oakland division.
<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.
Focus Surgery, Inc.
-------------------------------------------
(Registrant)
Date: February 6, 1997 By: /s/ RICK REDETT
-----------------------------------------
Name: Rick Redett
Title: President and Chief Executive Officer
<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 February, 1996
------------------
<TABLE>
<S> <C> <C> <C>
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 ($ _____).
END OF END OF AS OF
CURRENT PRIOR PETITION
2. ASSET/LIABILITY SUMMARY MONTH MONTH FILING
----- ----- ------
Current Assets (Market Value) $543,642 $502,204 $502,204
---------- ---------- ----------
Total Assets (Market Value) $2,193,642 $2,152,204 $2,152,204
---------- ---------- ----------
Current Liabilities $18,228
---------- ---------- ----------
Total Liabilities $875,041 $831,829 $831,829
---------- ---------- ----------
PETITION
CURRENT PRIOR DATE TO
3. STATEMENT OF CASH RECEIPTS & DISBURSEMENTS FOR MONTH MONTH MONTH MONTH END
----- ----- ---------
a. Total Receipts $63,021 $63,021
---------- ---------- ----------
b. Total Disbursements $18,170 $18,170
---------- ---------- ----------
c. Excess (Deficiency) of Receipts Over Disbursements (a - b) $44,851 $0 $44,851
---------- ---------- ----------
d. Cash Balance Beginning of Month $19,574 ----------
---------- ----------
e. Cash Balance End of Month (c + d) $64,425 $0
---------- ----------
---------- ----------
4. POST-PETITION LIABILITIES & RECEIVABLES RECEIVABLES LIABILITIES
----------- -----------
Balance at End of Previous Month $430,000 0
---------- ----------
Balance at End of Current Month $426,500 $18,228
---------- ----------
5. PAST DUE POST-PETITION LIABILITIES
Balance at End of Previous Month (over 30 days)
----------
Balance at End of Current Month (over 30 days) $0
----------
YES NO
---------- ----------
6. Are all federal, state, and local taxes current? (if no, attach schedule
of unpaid items) X
---------- ----------
7. Have any payments been made to pre-petition creditors, other than payments
in the normal course to secured creditors or lessors? (if yes, attach
listing including date of payment, amount of payment and name of payee) X
---------- ----------
8. Have any payments been made to officers, insiders, shareholders,
relatives? (if yes, attach listing including date of payment, amount and
reason for payment, and name of payee) X
---------- ----------
9. Have any payments been made to professionals? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
---------- ----------
10. If you answered yes to line 7,8, or 9, were all such payments approved by
the court? N/A
---------- ----------
11. Is the estate insured for replacement cost of assets and for general
liability? X
---------- ----------
12. Are U.S. Trustee quarterly fees current? N/A
---------- ----------
I declare under penalty of perjury that I have reviewed the above summary and attached financial statements, and after making
reasonable inquiry believe that these documents are correct.
Date: 3/27/96 /S/ Richard Redett
--------------- ------------------------------------------
Responsible Individual
</TABLE>
<PAGE>
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED FEB-96
----------
($ )
-----
<TABLE>
<CAPTION>
ASSETS
FROM SCHEDULES MARKET VALUE
-------------- ------------
<S> <C> <C> <C>
CURRENT ASSETS
1 Cash and cash equivalents - unrestricted $64,425
--------------
2 Cash and cash equivalents - restricted
--------------
3 Accounts receivable (net) A $426,500
--------------
4 Inventory B $0
--------------
5 Prepaid expenses $39,380
--------------
6 Other: Interest in insurance policies
-------------------------------- --------------
7 Payroll taxes $13,337
---------------------------------------- --------------
8 TOTAL CURRENT ASSETS $543,642
--------------
PROPERTY AND EQUIPMENT (MARKET VALUE)
9 Real property C $0
--------------
10 Machinery and equipment D $150,000
--------------
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 $150,000
--------------
OTHER ASSETS
21 Patents, copyrights, and other
intellectual property $1,500,000
----------------------------------------- --------------
22
----------------------------------------- --------------
23
----------------------------------------- --------------
24
----------------------------------------- --------------
25 TOTAL OTHER ASSETS $1,500,000
--------------
26 TOTAL ASSETS $2,193,642
--------------
--------------
NOTE:
Indicate the method used to estimate the market value of assets (e.g., appraisals; familiarity with comparable
market prices, etc.) and the date the value was determined.
Market value of patents and intellectual property was determined based of the value established in the Letter of Intent
from Takai Hospital for the purchase of these assets.
Market value of machinery and equipment is estimated based on assumed value to Takai Hospital who would require these
items to continue manufacturing and supporting the product. Value is established at approximately 30% of book value
or 5% of original cost. These assets are used and the age of the assets ranges from one to seven years.
</TABLE>
<PAGE>
LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($ )
-----
<TABLE>
<CAPTION>
LIABILITIES FROM SCHEDULES
--------------
<S> <C> <C> <C>
POST-PETITION
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 $18,228
--------------
33 Real property lease arrearage
--------------
34 Personal property lease arrearage
--------------
35 Accrued professional fees
--------------
36 Current portion of long-term debt (due within 12 months)
--------------
37 Other:
--------------------------------- --------------
38
---------------------------------------- --------------
39
---------------------------------------- --------------
40 TOTAL CURRENT LIABILITIES $18,228
--------------
41 LONG-TERM DEBT, NET OF CURRENT PORTION
--------------
42 TOTAL POST-PETITION LIABILITIES $18,228
--------------
PRE-PETITION LIABILITIES (ALLOWED AMOUNT)
43 Secured claims E $115,778
--------------
44 Priority unsecured claims E $0
--------------
45 General unsecured claims E $741,034
--------------
46 TOTAL PRE-PETITION LIABILITIES $856,813
--------------
47 TOTAL LIABILITIES $875,041
--------------
EQUITY (DEFICIT)
48
---------------------------------------- --------------
49
---------------------------------------- --------------
50
---------------------------------------- --------------
51
---------------------------------------- --------------
52 Market value adjustment
--------------
53 TOTAL EQUITY (DEFICIT) $1,318,602
--------------
54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $2,193,642
--------------
--------------
</TABLE>
<PAGE>
SCHEDULES
(GENERAL BUSINESS CASE)
($ )
-----
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 $18,228
----------- ---------------
31-60 Days $3,500
----------- --------------- -
61-90 Days $23,000 | $0
----------- --------------- |-----------------
91+ Days $400,000 -
----------- ---------------
Total accounts receivable/payable $426,500 $18,228
----------- ---------------
Allowance for doubtful accounts ---------------
-----------
Accounts receivable (net) $426,500
-----------
-----------
SCHEDULE B
INVENTORY/COST OF GOODS SOLD
<CAPTION>
TYPES AND AMOUNT OF INVENTORY(IES) COST OF GOODS SOLD
- ---------------------------------- ------------------
<S> <C> <C> <C>
INVENTORY(IES) Inventory Beginning of Month
BALANCE AT -----------------
END OF MONTH Add -
------------ Net purchases
Retail/Restaurants - -----------------
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
-------------
-------------
<CAPTION>
METHOD OF INVENTORY CONTROL INVENTORY VALUATION METHODS
- --------------------------- ---------------------------
<S> <C>
Do you have a functioning perpetual inventory Indicate by a checkmark method of inventory valuation used.
system?
Yes X No
---- ----
How often do you take a complete physical Valuation methods -
inventory? 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
<CAPTION>
DESCRIPTION COST MARKET VALUE
- ----------- ---- ------------
<S> <C> <C>
MACHINERY & EQUIPMENT -
See listing attached to original petition filing $2,343,339 $150,000
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
TOTAL $2,343,339 $150,000
------------ ----------------
------------ ----------------
FURNITURE & FIXTURES -
$0
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
TOTAL $0 $0
------------ ----------------
------------ ----------------
OFFICE EQUIPMENT -
See listing attached to original petition filing
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
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
<CAPTION>
CLAIMED ALLOWED
LIST TOTAL CLAIMS FOR EACH CLASSIFICATION - AMOUNT AMOUNT (b)
- ------------------------------------------- ------ ----------
<S> <C> <C>
Secured claims (a) $115,778
--------- ----------
Priority claims other than taxes $0
--------- ----------
Priority tax claims $0
--------- ----------
General unsecured claims $741,034
--------- ----------
(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.
</TABLE>
<PAGE>
STATEMENT OF OPERATIONS
(GENERAL BUSINESS CASE)
FOR THE MONTH FEB-96
-----------
$
------------
<TABLE>
<CAPTION>
CURRENT MONTH
- ---------------------------------------------- CUMULATIVE NEXT MONTH
ACTUAL FORECAST VARIANCE (CASE TO DATE) FORECAST
------ -------- -------- -------------- --------
<S> <C> <C> <C> <C> <C> <C>
REVENUES
$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:
$540 $540 8 Other income 540
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 9
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$540 $0 $540 10 TOTAL REVENUES $540 $0
- ---------- ---------- --------- ---------- ----------
EXPENSES
$0 11 Compensation to Owner(s)/Officer(s) -
- ---------- ---------- --------- ---------- ----------
$0 12 Salaries/Commissions -
- ---------- ---------- --------- ---------- ----------
$0 13 Management Fees -
- ---------- ---------- --------- ---------- ----------
$43,395 ($43,395) 14 Depreciation 43,395 $65,093
- ---------- ---------- --------- ---------- ----------
$0 15 Taxes: -
- ---------- ---------- --------- ---------- ----------
$0 16 Employer Payroll Taxes -
- ---------- ---------- --------- ---------- ----------
$0 17 Real Property Taxes -
- ---------- ---------- --------- ---------- ----------
$0 18 Other Taxes -
- ---------- ---------- --------- ---------- ----------
$0 19 Other Selling -
- ---------- ---------- --------- ---------- ----------
$13,766 ($13,766) 20 Other Administrative 13,766 $12,000
- ---------- ---------- --------- ---------- ----------
$0 21 Interest -
- ---------- ---------- --------- ---------- ----------
22 Other Expenses: -
---------- ----------
$0 23 -
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 24 -
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 25 -
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 26 -
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 27 -
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 28 -
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 29 -
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 30 -
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$57,161 $0 ($57,161) 31 TOTAL EXPENSES $57,161 $77,093
- ---------- ---------- --------- ---------- ----------
($56,621) $0 ($56,621) 32 SUBTOTAL ($56,621) ($77,093)
- ---------- ---------- --------- ---------- ----------
REORGANIZATION ITEMS
$23,028 ($23,028) 33 Professional Fees 23,028 $30,000
- ---------- ---------- --------- ---------- ----------
$0 34 Provisions for Rejected Executory Contracts
- ---------- ---------- --------- ---------- ----------
Interest Earned on Accumulated Cash
$122 ($122) 35 Resulting from Chp 11 Case 122
- ---------- ---------- --------- ---------- ----------
$0 36 Gain or (Loss) from Sale of Equipment
- ---------- ---------- --------- ---------- ----------
$0 37
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 38
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$22,906 $0 ($22,906) 39 TOTAL REORGANIZATION ITEMS $22,906 $30,000
- ---------- ---------- --------- ---------- ----------
($79,527) $0 ($79,527) 40 NET PROFIT (LOSS) BEFORE FEDERAL & STATE TAXES ($79,527) ($107,093)
- ---------- ---------- --------- ---------- ----------
$0 41 Federal & State Income Taxes
- ---------- ---------- --------- ---------- ----------
($79,527) $0 ($79,527) 42 NET PROFIT (LOSS) ($79,527) ($107,093)
- ---------- ---------- --------- ---------- ----------
- ---------- ---------- --------- ---------- ----------
EXPLANATION OF VARIANCE TO STATEMENT OF OPERATIONS
(FOR VARIANCES GREATER THAN +/- 10% ONLY)
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
SUMMARY OF CASH RECEIPTS AND DISBURSEMENTS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED FEBRUARY, 1996
---------------------
<TABLE>
<S> <C> <C> <C>
CASH BALANCE BEGINNING OF MONTH $19,574
-----------------
CASH RECEIPTS (1) $63,021
-----------------
CASH DISBURSEMENTS (1) $18,170
-----------------
EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS $44,851
-----------------
CASH BALANCE END OF MONTH $64,425
-----------------
-----------------
RECAPITULATION OF FUNDS HELD AT END OF MONTH
ACCOUNT 1 ACCOUNT 2 ACCOUNT 3
--------- --------- ---------
BANK Silicon Valley Bank Bank of America Burlingame Bank
------------------------- ----------------- -----------------
ACCOUNT TYPE Checking Checking Checking
------------------------- ----------------- -----------------
ACCOUNT NO. 3300023699 12339-61786 1104918
------------------------- ----------------- -----------------
ACCOUNT PURPOSE General operating acct. Payroll Investment
------------------------- ----------------- -----------------
BALANCE, END OF MONTH $45,086 $0 $55
------------------------- ----------------- -----------------
Closed
ACCOUNT 4 ACCOUNT 5 ACCOUNT 6
--------- --------- ---------
BANK Silicon Valley Bank Bank of America Merrill Lynch
------------------------- ----------------- -----------------
ACCOUNT TYPE Checking Checking Checking
------------------------- ----------------- -----------------
ACCOUNT NO. 01403869-75 12339-17690 3222378
------------------------- ----------------- -----------------
ACCOUNT PURPOSE Investment Payroll Investment
------------------------- ----------------- -----------------
BALANCE, END OF MONTH $0 $13,060 $0
------------------------- ----------------- -----------------
Closed Closed
ACCOUNT 7 ACCOUNT 8
--------- ---------
BANK Silicon Valley Bank Merrill Lynch
------------------------- ----------------- -----------------
ACCOUNT TYPE Checking Checking
------------------------- ----------------- -----------------
ACCOUNT NO. 01403869-70 233-07K66
------------------------- ----------------- -----------------
ACCOUNT PURPOSE General operating acct. Investment
------------------------- ----------------- -----------------
BALANCE, END OF MONTH $6,156 $68
------------------------- ----------------- -----------------
TOTAL FUNDS ON HAND FOR ALL ACCOUNTS $64,425
-------------------------
-------------------------
(1) Excluding bank transfers between your accounts.
</TABLE>
<PAGE>
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re: FOCUS SURGERY, INC., Debtor. | Case No. 96-41107-N
| -----------
Employer's Tax Identification | CHAPTER 11
No.: 77-0332937 | MONTHLY OPERATING REPORT
| (General Business Case)
- ------------------------------------------
SUMMARY OF FINANCIAL STATUS
MONTH ENDED Mar-96
------------------
<TABLE>
<S> <C> <C> <C>
1. Debtor in possession (or trustee) hereby submits this Monthly Operating
Report on the Accrual Basis of accounting (or if checked here ___ the
Office of the U.S. Trustee or the Court has approved the Cash Basis of
Accounting for the Debtor). Dollars reported in ($ _____).
END OF END OF AS OF
CURRENT PRIOR PETITION
2. ASSET/LIABILITY SUMMARY MONTH MONTH FILING
----- ----- ------
Current Assets (Market Value) $515,015 $543,642 $502,204
---------- ---------- ----------
Total Assets (Market Value) $2,165,015 $2,193,642 $2,152,204
---------- ---------- ----------
Current Liabilities $20,817 $18,228
---------- ---------- ----------
Total Liabilities $877,630 $875,041 $831,829
---------- ---------- ----------
PETITION
CURRENT PRIOR DATE TO
3. STATEMENT OF CASH RECEIPTS & DISBURSEMENTS FOR MONTH MONTH MONTH MONTH END
----- ----- ---------
a. Total Receipts $6,182 $63,021 $69,203
---------- ---------- ----------
b. Total Disbursements $6,202 $18,170 $24,372
---------- ---------- ----------
c. Excess (Deficiency) of Receipts Over Disbursements (a - b) ($20) $44,851 $44,831
---------- ---------- ----------
d. Cash Balance Beginning of Month $64,425 $19,574 ----------
---------- ----------
e. Cash Balance End of Month (c + d) $64,405 $64,425
---------- ----------
---------- ----------
4. POST-PETITION LIABILITIES & RECEIVABLES RECEIVABLES LIABILITIES
----------- -----------
Balance at End of Previous Month $18,228
---------- ----------
Balance at End of Current Month $20,817
---------- ----------
5. PAST DUE POST-PETITION LIABILITIES
Balance at End of Previous Month (over 30 days)
----------
Balance at End of Current Month (over 30 days) $17,020
----------
YES NO
---------- ----------
6. Are all federal, state, and local taxes current? (if no, attach schedule
of unpaid items) X
---------- ----------
7. Have any payments been made to pre-petition creditors, other than payments
in the normal course to secured creditors or lessors? (if yes, attach
listing including date of payment, amount of payment and name of payee) X
---------- ----------
8. Have any payments been made to officers, insiders, shareholders,
relatives? (if yes, attach listing including date of payment, amount and
reason for payment, and name of payee) X
---------- ----------
9. Have any payments been made to professionals? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
---------- ----------
10. If you answered yes to line 7,8, or 9, were all such payments approved by
the court? N/A
---------- ----------
11. Is the estate insured for replacement cost of assets and for general
liability? X
---------- ----------
12. Are U.S. Trustee quarterly fees current? X
---------- ----------
I declare under penalty of perjury that I have reviewed the above summary and attached financial statements, and after making
reasonable inquiry believe that these documents are correct.
Date: 4/20/96 /S/ Richard Redett
--------------- ------------------------------------------
Responsible Individual
</TABLE>
<PAGE>
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED FEB-96
----------
($ )
-----
<TABLE>
<CAPTION>
ASSETS
FROM SCHEDULES MARKET VALUE
-------------- ------------
<S> <C> <C> <C>
CURRENT ASSETS
1 Cash and cash equivalents - unrestricted $64,405
--------------
2 Cash and cash equivalents - restricted
--------------
3 Accounts receivable (net) A $426,500
--------------
4 Inventory B $0
--------------
5 Prepaid expenses $21,515
--------------
6 Other: Interest in insurance policies
-------------------------------- --------------
7 Payroll taxes $2,596
---------------------------------------- --------------
8 TOTAL CURRENT ASSETS $515,015
--------------
PROPERTY AND EQUIPMENT (MARKET VALUE)
9 Real property C $0
--------------
10 Machinery and equipment D $150,000
--------------
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 $150,000
--------------
OTHER ASSETS
21 Patents, copyrights, and other
intellectual property $1,500,000
----------------------------------------- --------------
22
----------------------------------------- --------------
23
----------------------------------------- --------------
24
----------------------------------------- --------------
25 TOTAL OTHER ASSETS $1,500,000
--------------
26 TOTAL ASSETS $2,165,015
--------------
--------------
NOTE:
Indicate the method used to estimate the market value of assets (e.g., appraisals; familiarity with comparable
market prices, etc.) and the date the value was determined.
Market value of patents and intellectual property was determined based of the value established in the Letter of Intent
from Takai Hospital for the purchase of these assets.
Market value of machinery and equipment is estimated based on assumed value to Takai Hospital who would require these
items to continue manufacturing and supporting the product. Value is established at approximately 30% of book value
or 5% of original cost. These assets are used and the age of the assets ranges from one to seven years.
</TABLE>
<PAGE>
LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($ )
-----
<TABLE>
<CAPTION>
LIABILITIES FROM SCHEDULES
--------------
<S> <C> <C> <C>
POST-PETITION
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 $19,581
--------------
33 Real property lease arrearage
--------------
34 Personal property lease arrearage
--------------
35 Accrued professional fees $1,236
--------------
36 Current portion of long-term debt (due within 12 months)
--------------
37 Other:
--------------------------------- --------------
38
---------------------------------------- --------------
39
---------------------------------------- --------------
40 TOTAL CURRENT LIABILITIES $20,817
--------------
41 LONG-TERM DEBT, NET OF CURRENT PORTION --------------
42 TOTAL POST-PETITION LIABILITIES $20,817
--------------
PRE-PETITION LIABILITIES (ALLOWED AMOUNT)
43 Secured claims E $115,778
--------------
44 Priority unsecured claims E $0
--------------
45 General unsecured claims E $741,034
--------------
46 TOTAL PRE-PETITION LIABILITIES $856,813
--------------
47 TOTAL LIABILITIES $877,630
--------------
EQUITY (DEFICIT)
48
---------------------------------------- --------------
49
---------------------------------------- --------------
50
---------------------------------------- --------------
51
---------------------------------------- --------------
52 Market value adjustment
--------------
53 TOTAL EQUITY (DEFICIT) $1,287,385
--------------
54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $2,165,015
--------------
--------------
</TABLE>
<PAGE>
SCHEDULES
(GENERAL BUSINESS CASE)
($ )
-----
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 $2,561
----------- ---------------
31-60 Days $0 $17,020
----------- --------------- -
61-90 Days $3,500 | $17,020
----------- --------------- |-----------------
91+ Days $423,000 -
----------- ---------------
Total accounts receivable/payable $426,500 $19,581
----------- ---------------
Allowance for doubtful accounts ---------------
-----------
Accounts receivable (net) $426,500
-----------
-----------
SCHEDULE B
INVENTORY/COST OF GOODS SOLD
<CAPTION>
TYPES AND AMOUNT OF INVENTORY(IES) COST OF GOODS SOLD
- ---------------------------------- ------------------
<S> <C> <C> <C>
INVENTORY(IES) Inventory Beginning of Month
BALANCE AT -----------------
END OF MONTH Add -
------------ Net purchases
Retail/Restaurants - -----------------
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
-------------
-------------
<CAPTION>
METHOD OF INVENTORY CONTROL INVENTORY VALUATION METHODS
- --------------------------- ---------------------------
<S> <C>
Do you have a functioning perpetual inventory Indicate by a checkmark method of inventory valuation used.
system?
Yes X No
---- ----
How often do you take a complete physical Valuation methods -
inventory? 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
<CAPTION>
DESCRIPTION COST MARKET VALUE
- ----------- ---- ------------
<S> <C> <C>
MACHINERY & EQUIPMENT -
See listing attached to original petition filing $2,343,339 $150,000
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
TOTAL $2,343,339 $150,000
------------ ----------------
------------ ----------------
FURNITURE & FIXTURES -
$0
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
TOTAL $0 $0
------------ ----------------
------------ ----------------
OFFICE EQUIPMENT -
See listing attached to original petition filing
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
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
<CAPTION>
CLAIMED ALLOWED
LIST TOTAL CLAIMS FOR EACH CLASSIFICATION - AMOUNT AMOUNT (b)
- ------------------------------------------- ------ ----------
<S> <C> <C>
Secured claims (a) $115,778
--------- ----------
Priority claims other than taxes $0
--------- ----------
Priority tax claims $0
--------- ----------
General unsecured claims $741,034
--------- ----------
(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.
</TABLE>
<PAGE>
STATEMENT OF OPERATIONS
(GENERAL BUSINESS CASE)
FOR THE MONTH MAR-96
-----------
$
------------
<TABLE>
<CAPTION>
CURRENT MONTH
- ---------------------------------------------- CUMULATIVE NEXT MONTH
ACTUAL FORECAST VARIANCE (CASE TO DATE) FORECAST
------ -------- -------- -------------- --------
<S> <C> <C> <C> <C> <C> <C>
REVENUES
$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 540
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 9
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 $0 $0 10 TOTAL REVENUES $540 $0
- ---------- ---------- --------- ---------- ----------
EXPENSES
$0 11 Compensation to Owner(s)/Officer(s)
- ---------- ---------- --------- ---------- ----------
$0 12 Salaries/Commissions
- ---------- ---------- --------- ---------- ----------
$0 13 Management Fees
- ---------- ---------- --------- ---------- ----------
$65,093 $65,093 ($0) 14 Depreciation 108,488 $65,093
- ---------- ---------- --------- ---------- ----------
$0 15 Taxes:
- ---------- ---------- --------- ---------- ----------
$0 16 Employer Payroll Taxes
- ---------- ---------- --------- ---------- ----------
$0 17 Real Property Taxes
- ---------- ---------- --------- ---------- ----------
$0 18 Other Taxes
- ---------- ---------- --------- ---------- ----------
$0 19 Other Selling
- ---------- ---------- --------- ---------- ----------
$5,216 $12,000 $6,784 20 Other Administrative $18,982 $12,000
- ---------- ---------- --------- ---------- ----------
$0 21 Interest
- ---------- ---------- --------- ---------- ----------
22 Other Expenses:
---------- ----------
$0 23
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 24
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 25
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 26
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 27
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 28
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 29
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 30
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$70,309 $77,093 $6,783 31 TOTAL EXPENSES $127,470 $77,093
- ---------- ---------- --------- ---------- ----------
($70,309) ($77,093) $6,783 32 SUBTOTAL ($126,930) ($77,093)
- ---------- ---------- --------- ---------- ----------
REORGANIZATION ITEMS
$20,112 $30,000 $9,888 33 Professional Fees $43,140 $15,000
- ---------- ---------- --------- ---------- ----------
$0 34 Provisions for Rejected Executory Contracts
- ---------- ---------- --------- ---------- ----------
Interest Earned on Accumulated Cash
$26 ($26) 35 Resulting from Chp 11 Case $148
- ---------- ---------- --------- ---------- ----------
$0 36 Gain or (Loss) from Sale of Equipment
- ---------- ---------- --------- ---------- ----------
$3,424 ($3,424) 37 Miscellaneous $3,424
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 38
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$23,510 $30,000 $6,490 39 TOTAL REORGANIZATION ITEMS $46,416 $15,000
- ---------- ---------- --------- ---------- ----------
($93,820) ($107,093) $13,273 40 NET PROFIT (LOSS) BEFORE FEDERAL & STATE TAXES ($173,347) ($92,093)
- ---------- ---------- --------- ---------- ----------
$0 41 Federal & State Income Taxes
- ---------- ---------- --------- ---------- ----------
($93,820) ($107,093) $13,273 42 NET PROFIT (LOSS) ($173,347) ($92,093)
- ---------- ---------- --------- ---------- ----------
- ---------- ---------- --------- ---------- ----------
EXPLANATION OF VARIANCE TO STATEMENT OF OPERATIONS
(FOR VARIANCES GREATER THAN +/- 10% ONLY)
Activities have declined in this month. The company vacated its facility, reducing its operating expenses.
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
SUMMARY OF CASH RECEIPTS AND DISBURSEMENTS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED MAR-96
---------------------
<TABLE>
<S> <C> <C> <C>
CASH BALANCE BEGINNING OF MONTH $64,425
-----------------
CASH RECEIPTS (1) $6,182
-----------------
CASH DISBURSEMENTS (1) $6,202
-----------------
EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS ($20)
-----------------
CASH BALANCE END OF MONTH $64,405
-----------------
-----------------
RECAPITULATION OF FUNDS HELD AT END OF MONTH
ACCOUNT 1 ACCOUNT 2 ACCOUNT 3
--------- --------- ---------
BANK Silicon Valley Bank Silicon Valley Bank Burlingame Bank
------------------------- ----------------------- -----------------
ACCOUNT TYPE Checking Checking Checking
------------------------- ----------------------- -----------------
ACCOUNT NO. 3300023699 01403869-70 1104918
------------------------- ----------------------- -----------------
ACCOUNT PURPOSE General operating acct. General operating acct. Investment
------------------------- ----------------------- -----------------
BALANCE, END OF MONTH $45,331 $6,156 $56
------------------------- ----------------------- -----------------
ACCOUNT 4 ACCOUNT 5 ACCOUNT 6
--------- --------- ---------
BANK Merrill Lynch Bank of America
------------------------- ----------------- -----------------
ACCOUNT TYPE Checking Checking
------------------------- ----------------- -----------------
ACCOUNT NO. 233-07K66 12339-17690
------------------------- ----------------- -----------------
ACCOUNT PURPOSE Investment Payroll
------------------------- ----------------- -----------------
BALANCE, END OF MONTH $69 $12,794
------------------------- ----------------- -----------------
TOTAL FUNDS ON HAND FOR ALL ACCOUNTS $64,405
-------------------------
-------------------------
(1) Excluding bank transfers between your accounts.
</TABLE>
<PAGE>
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re: FOCUS SURGERY, INC., Debtor. | Case No. 96-41107-N
| -----------
Employer's Tax Identification | CHAPTER 11
No.: 77-0332937 | MONTHLY OPERATING REPORT
| (General Business Case)
- ------------------------------------------
SUMMARY OF FINANCIAL STATUS
MONTH ENDED Apr-96
------------------
<TABLE>
<S> <C> <C> <C>
1. Debtor in possession (or trustee) hereby submits this Monthly Operating
Report on the Accrual Basis of accounting (or if checked here ___ the
Office of the U.S. Trustee or the Court has approved the Cash Basis of
Accounting for the Debtor). Dollars reported in ($ _____).
END OF END OF AS OF
CURRENT PRIOR PETITION
2. ASSET/LIABILITY SUMMARY MONTH MONTH FILING
----- ----- ------
Current Assets (Market Value) $501,029 $515,015 $502,204
---------- ---------- ----------
Total Assets (Market Value) $2,151,029 $2,165,015 $2,152,204
---------- ---------- ----------
Current Liabilities $23,645 $20,817
---------- ---------- ----------
Total Liabilities $880,457 $877,630 $831,829
---------- ---------- ----------
PETITION
CURRENT PRIOR DATE TO
3. STATEMENT OF CASH RECEIPTS & DISBURSEMENTS FOR MONTH MONTH MONTH MONTH END
----- ----- ---------
a. Total Receipts $3,500 $6,182 $72,703
---------- ---------- ----------
b. Total Disbursements $4,491 $6,202 $28,863
---------- ---------- ----------
c. Excess (Deficiency) of Receipts Over Disbursements (a - b) ($991) ($20) $43,840
---------- ---------- ----------
d. Cash Balance Beginning of Month $64,405 $64,425 ----------
---------- ----------
e. Cash Balance End of Month (c + d) $63,414 $64,405
---------- ----------
---------- ----------
4. POST-PETITION LIABILITIES & RECEIVABLES RECEIVABLES LIABILITIES
----------- -----------
Balance at End of Previous Month $20,817
---------- ----------
Balance at End of Current Month $23,645
---------- ----------
5. PAST DUE POST-PETITION LIABILITIES
Balance at End of Previous Month (over 30 days) $17,020
----------
Balance at End of Current Month (over 30 days) $18,095
----------
YES NO
---------- ----------
6. Are all federal, state, and local taxes current? (if no, attach schedule
of unpaid items) X
---------- ----------
7. Have any payments been made to pre-petition creditors, other than payments
in the normal course to secured creditors or lessors? (if yes, attach
listing including date of payment, amount of payment and name of payee) X
---------- ----------
8. Have any payments been made to officers, insiders, shareholders,
relatives? (if yes, attach listing including date of payment, amount and
reason for payment, and name of payee) X
---------- ----------
9. Have any payments been made to professionals? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
---------- ----------
10. If you answered yes to line 7,8, or 9, were all such payments approved by
the court? N/A
---------- ----------
11. Is the estate insured for replacement cost of assets and for general
liability? X
---------- ----------
12. Are U.S. Trustee quarterly fees current? X
---------- ----------
I declare under penalty of perjury that I have reviewed the above summary and attached financial statements, and after making
reasonable inquiry believe that these documents are correct.
Date: 5/20/96 /S/ Richard Redett
--------------- ------------------------------------------
Responsible Individual
</TABLE>
<PAGE>
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED APR-96
----------
($ )
-----
<TABLE>
<CAPTION>
ASSETS
FROM SCHEDULES MARKET VALUE
-------------- ------------
<S> <C> <C> <C>
CURRENT ASSETS
1 Cash and cash equivalents - unrestricted $63,414
--------------
2 Cash and cash equivalents - restricted
--------------
3 Accounts receivable (net) A $423,000
--------------
4 Inventory B $0
--------------
5 Prepaid expenses $12,019
--------------
6 Other: Interest in insurance policies
-------------------------------- --------------
7 Payroll taxes $2,596
---------------------------------------- --------------
8 TOTAL CURRENT ASSETS $501,029
--------------
PROPERTY AND EQUIPMENT (MARKET VALUE)
9 Real property C $0
--------------
10 Machinery and equipment D $150,000
--------------
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 $150,000
--------------
OTHER ASSETS
21 Patents, copyrights, and other
intellectual property $1,500,000
----------------------------------------- --------------
22
----------------------------------------- --------------
23
----------------------------------------- --------------
24
----------------------------------------- --------------
25 TOTAL OTHER ASSETS $1,500,000
--------------
26 TOTAL ASSETS $2,151,029
--------------
--------------
NOTE:
Indicate the method used to estimate the market value of assets (e.g., appraisals; familiarity with comparable
market prices, etc.) and the date the value was determined.
Market value of patents and intellectual property was determined based of the value established in the Letter of Intent
from Takai Hospital for the purchase of these assets.
Market value of machinery and equipment is estimated based on assumed value to Takai Hospital who would require these
items to continue manufacturing and supporting the product. Value is established at approximately 30% of book value
or 5% of original cost. These assets are used and the age of the assets ranges from one to seven years.
</TABLE>
<PAGE>
LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($ )
-----
<TABLE>
<CAPTION>
LIABILITIES FROM SCHEDULES
--------------
<S> <C> <C> <C>
POST-PETITION
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 $19,195
--------------
33 Real property lease arrearage
--------------
34 Personal property lease arrearage
--------------
35 Accrued professional fees $4,449
--------------
36 Current portion of long-term debt (due within 12 months)
--------------
37 Other:
--------------------------------- --------------
38
---------------------------------------- --------------
39
---------------------------------------- --------------
40 TOTAL CURRENT LIABILITIES $23,645
--------------
41 LONG-TERM DEBT, NET OF CURRENT PORTION --------------
42 TOTAL POST-PETITION LIABILITIES $23,645
--------------
PRE-PETITION LIABILITIES (ALLOWED AMOUNT)
43 Secured claims E $115,778
--------------
44 Priority unsecured claims E $0
--------------
45 General unsecured claims E $741,034
--------------
46 TOTAL PRE-PETITION LIABILITIES $856,813
--------------
47 TOTAL LIABILITIES $880,457
--------------
EQUITY (DEFICIT)
48
---------------------------------------- --------------
49
---------------------------------------- --------------
50
---------------------------------------- --------------
51
---------------------------------------- --------------
52 Market value adjustment
--------------
53 TOTAL EQUITY (DEFICIT) $1,270,572
--------------
54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $2,151,029
--------------
--------------
</TABLE>
<PAGE>
SCHEDULES
(GENERAL BUSINESS CASE)
($ )
-----
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 $1,101
----------- ---------------
31-60 Days $0 $1,290
----------- --------------- -
61-90 Days $0 $16,805 | $18,095
----------- --------------- |-----------------
91+ Days $423,000 -
----------- ---------------
Total accounts receivable/payable $423,000 $19,195
----------- ---------------
Allowance for doubtful accounts ---------------
-----------
Accounts receivable (net) $423,000
-----------
-----------
SCHEDULE B
INVENTORY/COST OF GOODS SOLD
<CAPTION>
TYPES AND AMOUNT OF INVENTORY(IES) COST OF GOODS SOLD
- ---------------------------------- ------------------
<S> <C> <C> <C>
INVENTORY(IES) Inventory Beginning of Month
BALANCE AT -----------------
END OF MONTH Add -
------------ Net purchases
Retail/Restaurants - -----------------
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
-------------
-------------
<CAPTION>
METHOD OF INVENTORY CONTROL INVENTORY VALUATION METHODS
- --------------------------- ---------------------------
<S> <C>
Do you have a functioning perpetual inventory Indicate by a checkmark method of inventory valuation used.
system?
Yes X No
---- ----
How often do you take a complete physical Valuation methods -
inventory? 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
<CAPTION>
DESCRIPTION COST MARKET VALUE
- ----------- ---- ------------
<S> <C> <C>
MACHINERY & EQUIPMENT -
See listing attached to original petition filing $2,343,339 $150,000
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
TOTAL $2,343,339 $150,000
------------ ----------------
------------ ----------------
FURNITURE & FIXTURES -
$0
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
TOTAL $0 $0
------------ ----------------
------------ ----------------
OFFICE EQUIPMENT -
See listing attached to original petition filing
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
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
<CAPTION>
CLAIMED ALLOWED
LIST TOTAL CLAIMS FOR EACH CLASSIFICATION - AMOUNT AMOUNT (b)
- ------------------------------------------- ------ ----------
<S> <C> <C>
Secured claims (a) $115,778
--------- ----------
Priority claims other than taxes $0
--------- ----------
Priority tax claims $0
--------- ----------
General unsecured claims $741,034
--------- ----------
(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.
</TABLE>
<PAGE>
STATEMENT OF OPERATIONS
(GENERAL BUSINESS CASE)
FOR THE MONTH APR-96
-----------
$
------------
<TABLE>
<CAPTION>
CURRENT MONTH
- ---------------------------------------------- CUMULATIVE NEXT MONTH
ACTUAL FORECAST VARIANCE (CASE TO DATE) FORECAST
------ -------- -------- -------------- --------
<S> <C> <C> <C> <C> <C> <C>
REVENUES
$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:
$25 $25 8 Other income $565
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 9
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$25 $0 $25 10 TOTAL REVENUES $565 $0
- ---------- ---------- --------- ---------- ----------
EXPENSES
$0 11 Compensation to Owner(s)/Officer(s)
- ---------- ---------- --------- ---------- ----------
$0 12 Salaries/Commissions
- ---------- ---------- --------- ---------- ----------
$0 13 Management Fees
- ---------- ---------- --------- ---------- ----------
$65,093 $65,093 $0 14 Depreciation $173,581 $65,093
- ---------- ---------- --------- ---------- ----------
$0 15 Taxes:
- ---------- ---------- --------- ---------- ----------
$0 16 Employer Payroll Taxes
- ---------- ---------- --------- ---------- ----------
$0 17 Real Property Taxes
- ---------- ---------- --------- ---------- ----------
$0 18 Other Taxes
- ---------- ---------- --------- ---------- ----------
$0 19 Other Selling
- ---------- ---------- --------- ---------- ----------
$4,096 $12,000 $7,904 20 Other Administrative $23,078 $12,000
- ---------- ---------- --------- ---------- ----------
$0 21 Interest
- ---------- ---------- --------- ---------- ----------
22 Other Expenses:
---------- ----------
$0 23
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 24
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 25
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 26
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 27
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 28
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 29
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 30
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$69,189 $77,093 $7,904 31 TOTAL EXPENSES $196,659 $77,093
- ---------- ---------- --------- ---------- ----------
($69,164) ($77,093) $7,929 32 SUBTOTAL ($196,094) ($77,093)
- ---------- ---------- --------- ---------- ----------
REORGANIZATION ITEMS
$14,708 $15,000 $292 33 Professional Fees $57,848 $15,000
- ---------- ---------- --------- ---------- ----------
$0 34 Provisions for Rejected Executory Contracts
- ---------- ---------- --------- ---------- ----------
Interest Earned on Accumulated Cash
($21) $21 35 Resulting from Chp 11 Case $127
- ---------- ---------- --------- ---------- ----------
$0 36 Gain or (Loss) from Sale of Equipment
- ---------- ---------- --------- ---------- ----------
$500 ($500) 37 Miscellaneous $3,924
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 38
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$15,229 $15,000 ($229) 39 TOTAL REORGANIZATION ITEMS $61,645 $15,000
- ---------- ---------- --------- ---------- ----------
($84,393) ($92,093) $7,700 40 NET PROFIT (LOSS) BEFORE FEDERAL & STATE TAXES ($257,739) ($92,093)
- ---------- ---------- --------- ---------- ----------
$0 41 Federal & State Income Taxes
- ---------- ---------- --------- ---------- ----------
($84,393) ($92,093) $7,700 42 NET PROFIT (LOSS) ($257,739) ($92,093)
- ---------- ---------- --------- ---------- ----------
- ---------- ---------- --------- ---------- ----------
EXPLANATION OF VARIANCE TO STATEMENT OF OPERATIONS
(FOR VARIANCES GREATER THAN +/- 10% ONLY)
Activities have declined in this month. The company vacated its facility, reducing its operating expenses.
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
SUMMARY OF CASH RECEIPTS AND DISBURSEMENTS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED APR-96
---------------------
<TABLE>
<S> <C> <C> <C>
CASH BALANCE BEGINNING OF MONTH $64,405
-----------------
CASH RECEIPTS (1) $3,500
-----------------
CASH DISBURSEMENTS (1) $4,491
-----------------
EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS ($991)
-----------------
CASH BALANCE END OF MONTH $63,414
-----------------
-----------------
RECAPITULATION OF FUNDS HELD AT END OF MONTH
ACCOUNT 1 ACCOUNT 2 ACCOUNT 3
--------- --------- ---------
BANK Silicon Valley Bank Silicon Valley Bank Burlingame Bank
------------------------- ----------------------- -----------------
ACCOUNT TYPE Checking Checking Checking
------------------------- ----------------------- -----------------
ACCOUNT NO. 3300023699 01403869-70 1104918
------------------------- ----------------------- -----------------
ACCOUNT PURPOSE General operating acct. General operating acct. Investment
------------------------- ----------------------- -----------------
BALANCE, END OF MONTH $46,367 $16,923 $56
------------------------- ----------------------- -----------------
ACCOUNT 4 ACCOUNT 5 ACCOUNT 6
--------- --------- ---------
BANK Merrill Lynch Bank of America
------------------------- ----------------- -----------------
ACCOUNT TYPE Checking Checking
------------------------- ----------------- -----------------
ACCOUNT NO. 233-07K66 12339-17690
------------------------- ----------------- -----------------
ACCOUNT PURPOSE Investment Payroll
------------------------- ----------------- -----------------
BALANCE, END OF MONTH $69 $0
------------------------- ----------------- -----------------
closed 4/30/96
TOTAL FUNDS ON HAND FOR ALL ACCOUNTS $63,414
-------------------------
-------------------------
(1) Excluding bank transfers between your accounts.
</TABLE>
<PAGE>
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re: FOCUS SURGERY, INC., Debtor. | Case No. 96-41107-N
| -----------
Employer's Tax Identification | CHAPTER 11
No.: 77-0332937 | MONTHLY OPERATING REPORT
| (General Business Case)
- ------------------------------------------
SUMMARY OF FINANCIAL STATUS
MONTH ENDED May-96
------------------
<TABLE>
<S> <C> <C> <C>
1. Debtor in possession (or trustee) hereby submits this Monthly Operating
Report on the Accrual Basis of accounting (or if checked here ___ the
Office of the U.S. Trustee or the Court has approved the Cash Basis of
Accounting for the Debtor). Dollars reported in ($ _____).
END OF END OF AS OF
CURRENT PRIOR PETITION
2. ASSET/LIABILITY SUMMARY MONTH MONTH FILING
----- ----- ------
Current Assets (Market Value) $496,450 $501,029 $502,204
---------- ---------- ----------
Total Assets (Market Value) $2,146,450 $2,151,029 $2,152,204
---------- ---------- ----------
Current Liabilities $31,425 $23,645
---------- ---------- ----------
Total Liabilities $888,237 $880,457 $831,829
---------- ---------- ----------
PETITION
CURRENT PRIOR DATE TO
3. STATEMENT OF CASH RECEIPTS & DISBURSEMENTS FOR MONTH MONTH MONTH MONTH END
----- ----- ---------
a. Total Receipts $0 $3,500 $66,521
---------- ---------- ----------
b. Total Disbursements $1,309 $4,491 $23,970
---------- ---------- ----------
c. Excess (Deficiency) of Receipts Over Disbursements (a - b) ($1,309) ($991) $42,551
---------- ---------- ----------
d. Cash Balance Beginning of Month $63,414 $64,405 ----------
---------- ----------
e. Cash Balance End of Month (c + d) $62,105 $63,414
---------- ----------
---------- ----------
4. POST-PETITION LIABILITIES & RECEIVABLES RECEIVABLES LIABILITIES
----------- -----------
Balance at End of Previous Month $23,645
---------- ----------
Balance at End of Current Month $31,425
---------- ----------
5. PAST DUE POST-PETITION LIABILITIES
Balance at End of Previous Month (over 30 days) $18,095
----------
Balance at End of Current Month (over 30 days) $18,926
----------
YES NO
---------- ----------
6. Are all federal, state, and local taxes current? (if no, attach schedule
of unpaid items) X
---------- ----------
7. Have any payments been made to pre-petition creditors, other than payments
in the normal course to secured creditors or lessors? (if yes, attach
listing including date of payment, amount of payment and name of payee) X
---------- ----------
8. Have any payments been made to officers, insiders, shareholders,
relatives? (if yes, attach listing including date of payment, amount and
reason for payment, and name of payee) X
---------- ----------
9. Have any payments been made to professionals? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
---------- ----------
10. If you answered yes to line 7,8, or 9, were all such payments approved by
the court? N/A
---------- ----------
11. Is the estate insured for replacement cost of assets and for general
liability? X
---------- ----------
12. Are U.S. Trustee quarterly fees current? X
---------- ----------
I declare under penalty of perjury that I have reviewed the above summary and attached financial statements, and after making
reasonable inquiry believe that these documents are correct.
Date: 6/19/96 /S/ Richard Redett
--------------- ------------------------------------------
Responsible Individual
</TABLE>
<PAGE>
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED MAY-96
----------
($ )
-----
<TABLE>
<CAPTION>
ASSETS
FROM SCHEDULES MARKET VALUE
-------------- ------------
<S> <C> <C> <C>
CURRENT ASSETS
1 Cash and cash equivalents - unrestricted $62,105
--------------
2 Cash and cash equivalents - restricted
--------------
3 Accounts receivable (net) A $423,000
--------------
4 Inventory B $0
--------------
5 Prepaid expenses $8,749
--------------
6 Other: Interest in insurance policies
-------------------------------- --------------
7 Payroll taxes $2,596
---------------------------------------- --------------
8 TOTAL CURRENT ASSETS $496,450
--------------
PROPERTY AND EQUIPMENT (MARKET VALUE)
9 Real property C $0
--------------
10 Machinery and equipment D $150,000
--------------
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 $150,000
--------------
OTHER ASSETS
21 Patents, copyrights, and other
intellectual property $1,500,000
----------------------------------------- --------------
22
----------------------------------------- --------------
23
----------------------------------------- --------------
24
----------------------------------------- --------------
25 TOTAL OTHER ASSETS $1,500,000
--------------
26 TOTAL ASSETS $2,146,450
--------------
--------------
NOTE:
Indicate the method used to estimate the market value of assets (e.g., appraisals; familiarity with comparable
market prices, etc.) and the date the value was determined.
Market value of patents and intellectual property was determined based of the value established in the Letter of Intent
from Takai Hospital for the purchase of these assets.
Market value of machinery and equipment is estimated based on assumed value to Takai Hospital who would require these
items to continue manufacturing and supporting the product. Value is established at approximately 30% of book value
or 5% of original cost. These assets are used and the age of the assets ranges from one to seven years.
</TABLE>
<PAGE>
LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($ )
-----
<TABLE>
<CAPTION>
LIABILITIES FROM SCHEDULES
--------------
<S> <C> <C> <C>
POST-PETITION
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 $18,925
--------------
33 Real property lease arrearage
--------------
34 Personal property lease arrearage
--------------
35 Accrued professional fees $11,800
--------------
36 Current portion of long-term debt (due within 12 months)
--------------
37 Other: Accrued consulting fees $700
--------------------------------- --------------
38
---------------------------------------- --------------
39
---------------------------------------- --------------
40 TOTAL CURRENT LIABILITIES $31,425
--------------
41 LONG-TERM DEBT, NET OF CURRENT PORTION --------------
42 TOTAL POST-PETITION LIABILITIES $31,425
--------------
PRE-PETITION LIABILITIES (ALLOWED AMOUNT)
43 Secured claims E $115,778
--------------
44 Priority unsecured claims E $0
--------------
45 General unsecured claims E $741,034
--------------
46 TOTAL PRE-PETITION LIABILITIES $856,813
--------------
47 TOTAL LIABILITIES $888,237
--------------
EQUITY (DEFICIT)
48
---------------------------------------- --------------
49
---------------------------------------- --------------
50
---------------------------------------- --------------
51
---------------------------------------- --------------
52 Market value adjustment
--------------
53 TOTAL EQUITY (DEFICIT) $1,258,214
--------------
54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $2,146,451
--------------
--------------
</TABLE>
<PAGE>
SCHEDULES
(GENERAL BUSINESS CASE)
($ )
-----
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 $1,082
----------- --------------- -
61-90 Days $0 $17,844 | $18,926
----------- --------------- |-----------------
91+ Days $423,000 -
----------- ---------------
Total accounts receivable/payable $423,000 $18,925
----------- ---------------
Allowance for doubtful accounts ---------------
-----------
Accounts receivable (net) $423,000
-----------
-----------
SCHEDULE B
INVENTORY/COST OF GOODS SOLD
<CAPTION>
TYPES AND AMOUNT OF INVENTORY(IES) COST OF GOODS SOLD
- ---------------------------------- ------------------
<S> <C> <C> <C>
INVENTORY(IES) Inventory Beginning of Month
BALANCE AT -----------------
END OF MONTH Add -
------------ Net purchases
Retail/Restaurants - -----------------
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
-------------
-------------
<CAPTION>
METHOD OF INVENTORY CONTROL INVENTORY VALUATION METHODS
- --------------------------- ---------------------------
<S> <C>
Do you have a functioning perpetual inventory Indicate by a checkmark method of inventory valuation used.
system?
Yes X No
---- ----
How often do you take a complete physical Valuation methods -
inventory? 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
<CAPTION>
DESCRIPTION COST MARKET VALUE
- ----------- ---- ------------
<S> <C> <C>
MACHINERY & EQUIPMENT -
See listing attached to original petition filing $2,343,339 $150,000
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
TOTAL $2,343,339 $150,000
------------ ----------------
------------ ----------------
FURNITURE & FIXTURES -
$0
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
TOTAL $0 $0
------------ ----------------
------------ ----------------
OFFICE EQUIPMENT -
See listing attached to original petition filing
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
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
<CAPTION>
CLAIMED ALLOWED
LIST TOTAL CLAIMS FOR EACH CLASSIFICATION - AMOUNT AMOUNT (b)
- ------------------------------------------- ------ ----------
<S> <C> <C>
Secured claims (a) $115,778
--------- ----------
Priority claims other than taxes $0
--------- ----------
Priority tax claims $0
--------- ----------
General unsecured claims $741,034
--------- ----------
(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.
</TABLE>
<PAGE>
STATEMENT OF OPERATIONS
(GENERAL BUSINESS CASE)
FOR THE MONTH MAY-96
-----------
$
------------
<TABLE>
<CAPTION>
CURRENT MONTH
- ---------------------------------------------- CUMULATIVE NEXT MONTH
ACTUAL FORECAST VARIANCE (CASE TO DATE) FORECAST
------ -------- -------- -------------- --------
<S> <C> <C> <C> <C> <C> <C>
REVENUES
$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
- ---------- ---------- --------- ---------- ----------
$65,093 $65,093 $0 14 Depreciation $238,674 $65,093
- ---------- ---------- --------- ---------- ----------
$0 15 Taxes:
- ---------- ---------- --------- ---------- ----------
$0 16 Employer Payroll Taxes
- ---------- ---------- --------- ---------- ----------
$0 17 Real Property Taxes
- ---------- ---------- --------- ---------- ----------
$0 18 Other Taxes
- ---------- ---------- --------- ---------- ----------
$0 19 Other Selling
- ---------- ---------- --------- ---------- ----------
$1,739 $12,000 $10,261 20 Other Administrative $24,817 $12,000
- ---------- ---------- --------- ---------- ----------
$0 21 Interest
- ---------- ---------- --------- ---------- ----------
22 Other Expenses:
---------- ----------
$0 23
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 24
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 25
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 26
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 27
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 28
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 29
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 30
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$66,832 $77,093 $10,261 31 TOTAL EXPENSES $263,491 $77,093
- ---------- ---------- --------- ---------- ----------
($66,832) ($77,093) $10,261 32 SUBTOTAL ($262,926) ($77,093)
- ---------- ---------- --------- ---------- ----------
REORGANIZATION ITEMS
$10,620 $15,000 $4,380 33 Professional Fees $68,468 $20,000
- ---------- ---------- --------- ---------- ----------
$0 34 Provisions for Rejected Executory Contracts
- ---------- ---------- --------- ---------- ----------
Interest Earned on Accumulated Cash
$0 35 Resulting from Chp 11 Case $127
- ---------- ---------- --------- ---------- ----------
$0 36 Gain or (Loss) from Sale of Equipment
- ---------- ---------- --------- ---------- ----------
$0 37 Miscellaneous $3,924
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 38
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$10,620 $15,000 $4,380 39 TOTAL REORGANIZATION ITEMS $72,265 $20,000
- ---------- ---------- --------- ---------- ----------
($77,452) ($92,093) $14,641 40 NET PROFIT (LOSS) BEFORE FEDERAL & STATE TAXES ($335,191) ($97,093)
- ---------- ---------- --------- ---------- ----------
$0 41 Federal & State Income Taxes
- ---------- ---------- --------- ---------- ----------
($77,452) ($92,093) $14,641 42 NET PROFIT (LOSS) ($335,191) ($97,093)
- ---------- ---------- --------- ---------- ----------
- ---------- ---------- --------- ---------- ----------
EXPLANATION OF VARIANCE TO STATEMENT OF OPERATIONS
(FOR VARIANCES GREATER THAN +/- 10% ONLY)
We have been anticipating a higher level of activity related to the technology acquisition. We now expect to see significant
- -----------------------------------------------------------------------------------------------------------------------------------
activity in June.
- -----------------------------------------------------------------------------------------------------------------------------------
The court has approved our petition for additional professional services to address SEC filing matters and patent filings.
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
SUMMARY OF CASH RECEIPTS AND DISBURSEMENTS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED MAY-96
---------------------
<TABLE>
<S> <C> <C> <C>
CASH BALANCE BEGINNING OF MONTH $63,414
-----------------
CASH RECEIPTS (1) $0
-----------------
CASH DISBURSEMENTS (1) $1,309
-----------------
EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS ($1,309)
-----------------
CASH BALANCE END OF MONTH $62,105
-----------------
-----------------
RECAPITULATION OF FUNDS HELD AT END OF MONTH
ACCOUNT 1 ACCOUNT 2 ACCOUNT 3
--------- --------- ---------
BANK Silicon Valley Bank Silicon Valley Bank Burlingame Bank
------------------------- ----------------------- -----------------
ACCOUNT TYPE Checking Checking Checking
------------------------- ----------------------- -----------------
ACCOUNT NO. 3300023699 01403869-70 1104918
------------------------- ----------------------- -----------------
ACCOUNT PURPOSE General operating acct. General operating acct. Investment
------------------------- ----------------------- -----------------
BALANCE, END OF MONTH $45,058 $16,923 $56
------------------------- ----------------------- -----------------
ACCOUNT 4 ACCOUNT 5 ACCOUNT 6
--------- --------- ---------
BANK Merrill Lynch Bank of America
------------------------- ----------------- -----------------
ACCOUNT TYPE Checking Checking
------------------------- ----------------- -----------------
ACCOUNT NO. 233-07K66 12339-17690
------------------------- ----------------- -----------------
ACCOUNT PURPOSE Investment Payroll
------------------------- ----------------- -----------------
BALANCE, END OF MONTH $69 $0
------------------------- ----------------- -----------------
closed 4/30/96
TOTAL FUNDS ON HAND FOR ALL ACCOUNTS $62,105
-------------------------
-------------------------
(1) Excluding bank transfers between your accounts.
</TABLE>
<PAGE>
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re: FOCUS SURGERY, INC., Debtor. | Case No. 96-41107-N
| -----------
Employer's Tax Identification | CHAPTER 11
No.: 77-0332937 | MONTHLY OPERATING REPORT
| (General Business Case)
- ------------------------------------------
SUMMARY OF FINANCIAL STATUS
MONTH ENDED Jun-96
------------------
<TABLE>
<S> <C> <C> <C>
1. Debtor in possession (or trustee) hereby submits this Monthly Operating
Report on the Accrual Basis of accounting (or if checked here ___ the
Office of the U.S. Trustee or the Court has approved the Cash Basis of
Accounting for the Debtor). Dollars reported in ($ _____).
END OF END OF AS OF
CURRENT PRIOR PETITION
2. ASSET/LIABILITY SUMMARY MONTH MONTH FILING
----- ----- ------
Current Assets (Market Value) $517,143 $496,450 $502,204
---------- ---------- ----------
Total Assets (Market Value) $2,167,143 $2,146,450 $2,152,204
---------- ---------- ----------
Current Liabilities $46,702 $31,425
---------- ---------- ----------
Total Liabilities $903,515 $888,237 $831,829
---------- ---------- ----------
PETITION
CURRENT PRIOR DATE TO
3. STATEMENT OF CASH RECEIPTS & DISBURSEMENTS FOR MONTH MONTH MONTH MONTH END
----- ----- ---------
a. Total Receipts $26,720 $0 $104,008
---------- ---------- ----------
b. Total Disbursements $11,204 $1,309 $45,518
---------- ---------- ----------
c. Excess (Deficiency) of Receipts Over Disbursements (a - b) $15,515 ($1,309) $58,490
---------- ---------- ----------
d. Cash Balance Beginning of Month $62,105 $63,414
---------- ----------
e. Cash Balance End of Month (c + d) $77,620 $62,105
---------- ----------
---------- ----------
4. POST-PETITION LIABILITIES & RECEIVABLES RECEIVABLES LIABILITIES
----------- -----------
Balance at End of Previous Month $31,425
---------- ----------
Balance at End of Current Month $46,702
---------- ----------
5. PAST DUE POST-PETITION LIABILITIES
Balance at End of Previous Month (over 30 days) $18,925
----------
Balance at End of Current Month (over 30 days) $19,574
----------
YES NO
---------- ----------
6. Are all federal, state, and local taxes current? (if no, attach schedule
of unpaid items) X
---------- ----------
7. Have any payments been made to pre-petition creditors, other than payments
in the normal course to secured creditors or lessors? (if yes, attach
listing including date of payment, amount of payment and name of payee) X
---------- ----------
8. Have any payments been made to officers, insiders, shareholders,
relatives? (if yes, attach listing including date of payment, amount and
reason for payment, and name of payee) X
---------- ----------
9. Have any payments been made to professionals? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
---------- ----------
10. If you answered yes to line 7,8, or 9, were all such payments approved by
the court? N/A
---------- ----------
11. Is the estate insured for replacement cost of assets and for general
liability? X
---------- ----------
12. Are U.S. Trustee quarterly fees current? X
---------- ----------
I declare under penalty of perjury that I have reviewed the above summary and attached financial statements, and after making
reasonable inquiry believe that these documents are correct.
Date: 7/19/96 /S/ Richard Redett
--------------- ------------------------------------------
Responsible Individual
</TABLE>
<PAGE>
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED JUN-96
----------
($ )
-----
<TABLE>
<CAPTION>
ASSETS
FROM SCHEDULES MARKET VALUE
-------------- ------------
<S> <C> <C> <C>
CURRENT ASSETS
1 Cash and cash equivalents - unrestricted $77,620
--------------
2 Cash and cash equivalents - restricted
--------------
3 Accounts receivable (net) A $423,000
--------------
4 Inventory B $0
--------------
5 Prepaid expenses $13,927
--------------
6 Other: Interest in insurance policies
-------------------------------- --------------
7 Payroll taxes $2,596
---------------------------------------- --------------
8 TOTAL CURRENT ASSETS $517,143
--------------
PROPERTY AND EQUIPMENT (MARKET VALUE)
9 Real property C $0
--------------
10 Machinery and equipment D $150,000
--------------
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 $150,000
--------------
OTHER ASSETS
21 Patents, copyrights, and other
intellectual property $1,500,000
----------------------------------------- --------------
22
----------------------------------------- --------------
23
----------------------------------------- --------------
24
----------------------------------------- --------------
25 TOTAL OTHER ASSETS $1,500,000
--------------
26 TOTAL ASSETS $2,167,143
--------------
--------------
NOTE:
Indicate the method used to estimate the market value of assets (e.g., appraisals; familiarity with comparable
market prices, etc.) and the date the value was determined.
Market value of patents and intellectual property was determined based of the value established in the Letter of Intent
from Takai Hospital for the purchase of these assets.
Market value of machinery and equipment is estimated based on assumed value to Takai Hospital who would require these
items to continue manufacturing and supporting the product. Value is established at approximately 30% of book value
or 5% of original cost. These assets are used and the age of the assets ranges from one to seven years.
</TABLE>
<PAGE>
LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($ )
-----
<TABLE>
<CAPTION>
LIABILITIES FROM SCHEDULES
--------------
<S> <C> <C> <C>
POST-PETITION
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 $20,307
--------------
33 Real property lease arrearage
--------------
34 Personal property lease arrearage
--------------
35 Accrued professional fees $25,695
--------------
36 Current portion of long-term debt (due within 12 months)
--------------
37 Other: Accrued consulting fees $700
--------------------------------- --------------
38
---------------------------------------- --------------
39
---------------------------------------- --------------
40 TOTAL CURRENT LIABILITIES $46,702
--------------
41 LONG-TERM DEBT, NET OF CURRENT PORTION --------------
42 TOTAL POST-PETITION LIABILITIES $46,702
--------------
PRE-PETITION LIABILITIES (ALLOWED AMOUNT)
43 Secured claims E $115,778
--------------
44 Priority unsecured claims E $0
--------------
45 General unsecured claims E $741,034
--------------
46 TOTAL PRE-PETITION LIABILITIES $856,813
--------------
47 TOTAL LIABILITIES $903,515
--------------
EQUITY (DEFICIT)
48
---------------------------------------- --------------
49
---------------------------------------- --------------
50
---------------------------------------- --------------
51
---------------------------------------- --------------
52 Market value adjustment
--------------
53 TOTAL EQUITY (DEFICIT) $1,263,628
--------------
54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $2,167,143
--------------
--------------
</TABLE>
<PAGE>
SCHEDULES
(GENERAL BUSINESS CASE)
($ )
-----
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 $733
----------- ---------------
31-60 Days $0 $0
----------- --------------- -
61-90 Days $0 $776 | $19,574
----------- --------------- |-----------------
91+ Days $423,000 $18,798 -
----------- ---------------
Total accounts receivable/payable $423,000 $20,307
----------- ---------------
Allowance for doubtful accounts ---------------
-----------
Accounts receivable (net) $423,000
-----------
-----------
SCHEDULE B
INVENTORY/COST OF GOODS SOLD
<CAPTION>
TYPES AND AMOUNT OF INVENTORY(IES) COST OF GOODS SOLD
- ---------------------------------- ------------------
<S> <C> <C> <C>
INVENTORY(IES) Inventory Beginning of Month
BALANCE AT -----------------
END OF MONTH Add -
------------ Net purchases
Retail/Restaurants - -----------------
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
-------------
-------------
<CAPTION>
METHOD OF INVENTORY CONTROL INVENTORY VALUATION METHODS
- --------------------------- ---------------------------
<S> <C>
Do you have a functioning perpetual inventory Indicate by a checkmark method of inventory valuation used.
system?
Yes X No
---- ----
How often do you take a complete physical Valuation methods -
inventory? 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
<CAPTION>
DESCRIPTION COST MARKET VALUE
- ----------- ---- ------------
<S> <C> <C>
MACHINERY & EQUIPMENT -
See listing attached to original petition filing $2,343,339 $150,000
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
TOTAL $2,343,339 $150,000
------------ ----------------
------------ ----------------
FURNITURE & FIXTURES -
$0
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
TOTAL $0 $0
------------ ----------------
------------ ----------------
OFFICE EQUIPMENT -
See listing attached to original petition filing
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
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
<CAPTION>
CLAIMED ALLOWED
LIST TOTAL CLAIMS FOR EACH CLASSIFICATION - AMOUNT AMOUNT (b)
- ------------------------------------------- ------ ----------
<S> <C> <C>
Secured claims (a) $115,778
--------- ----------
Priority claims other than taxes $0
--------- ----------
Priority tax claims $0
--------- ----------
General unsecured claims $741,034
--------- ----------
(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.
</TABLE>
<PAGE>
STATEMENT OF OPERATIONS
(GENERAL BUSINESS CASE)
FOR THE MONTH JUN-96
-----------
$
------------
<TABLE>
<CAPTION>
CURRENT MONTH
- ---------------------------------------------- CUMULATIVE NEXT MONTH
ACTUAL FORECAST VARIANCE (CASE TO DATE) FORECAST
------ -------- -------- -------------- --------
<S> <C> <C> <C> <C> <C> <C>
REVENUES
$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
- ---------- ---------- --------- ---------- ----------
$65,093 $65,093 ($0) 14 Depreciation $303,767 $65,093
- ---------- ---------- --------- ---------- ----------
$0 15 Taxes:
- ---------- ---------- --------- ---------- ----------
$0 16 Employer Payroll Taxes
- ---------- ---------- --------- ---------- ----------
$0 17 Real Property Taxes
- ---------- ---------- --------- ---------- ----------
$0 18 Other Taxes
- ---------- ---------- --------- ---------- ----------
$0 19 Other Selling
- ---------- ---------- --------- ---------- ----------
($24,893) $12,000 $36,893 20 Other Administrative ($76) $2,000
- ---------- ---------- --------- ---------- ----------
$0 21 Interest
- ---------- ---------- --------- ---------- ----------
22 Other Expenses:
---------- ----------
$0 23
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 24
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 25
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 26
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 27
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 28
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 29
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 30
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$40,200 $77,093 $36,893 31 TOTAL EXPENSES $303,691 $67,093
- ---------- ---------- --------- ---------- ----------
($40,200) ($77,093) $36,893 32 SUBTOTAL ($303,126) ($67,093)
- ---------- ---------- --------- ---------- ----------
REORGANIZATION ITEMS
$19,479 $20,000 $521 33 Professional Fees $87,947 $25,000
- ---------- ---------- --------- ---------- ----------
$0 34 Provisions for Rejected Executory Contracts
- ---------- ---------- --------- ---------- ----------
Interest Earned on Accumulated Cash
($0) $0 35 Resulting from Chp 11 Case $127
- ---------- ---------- --------- ---------- ----------
$0 36 Gain or (Loss) from Sale of Equipment
- ---------- ---------- --------- ---------- ----------
$0 37 Miscellaneous $3,924
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 38
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$19,479 $20,000 $521 39 TOTAL REORGANIZATION ITEMS $91,744 $25,000
- ---------- ---------- --------- ---------- ----------
($59,679) ($97,093) $37,414 40 NET PROFIT (LOSS) BEFORE FEDERAL & STATE TAXES ($394,870) ($92,093)
- ---------- ---------- --------- ---------- ----------
$0 41 Federal & State Income Taxes
- ---------- ---------- --------- ---------- ----------
($59,679) ($97,093) $37,414 42 NET PROFIT (LOSS) ($394,870) ($92,093)
- ---------- ---------- --------- ---------- ----------
- ---------- ---------- --------- ---------- ----------
EXPLANATION OF VARIANCE TO STATEMENT OF OPERATIONS
(FOR VARIANCES GREATER THAN +/- 10% ONLY)
In June, we received a significant refunds from the insurance company ($25,688) and phone company ($1,031) which reduced
- -----------------------------------------------------------------------------------------------------------------------------------
administrative expenses.
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
SUMMARY OF CASH RECEIPTS AND DISBURSEMENTS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED JUN-96
---------------------
<TABLE>
<S> <C> <C> <C>
CASH BALANCE BEGINNING OF MONTH $62,105
-----------------
CASH RECEIPTS (1) $26,720
-----------------
CASH DISBURSEMENTS (1) $11,204
-----------------
EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS $15,515
-----------------
CASH BALANCE END OF MONTH $77,620
-----------------
-----------------
RECAPITULATION OF FUNDS HELD AT END OF MONTH
ACCOUNT 1 ACCOUNT 2 ACCOUNT 3
--------- --------- ---------
BANK Silicon Valley Bank Merrill Lynch
------------------------- ----------------------- -----------------
ACCOUNT TYPE Checking Checking
------------------------- ----------------------- -----------------
ACCOUNT NO. 3300023699 233-07K66
------------------------- ----------------------- -----------------
ACCOUNT PURPOSE General operating acct. Investment
------------------------- ----------------------- -----------------
BALANCE, END OF MONTH $77,551 $69
------------------------- ----------------------- -----------------
ACCOUNT 4 ACCOUNT 5 ACCOUNT 6
--------- --------- ---------
BANK
------------------------- ----------------- -----------------
ACCOUNT TYPE
------------------------- ----------------- -----------------
ACCOUNT NO.
------------------------- ----------------- -----------------
ACCOUNT PURPOSE
------------------------- ----------------- -----------------
BALANCE, END OF MONTH
------------------------- ----------------- -----------------
TOTAL FUNDS ON HAND FOR ALL ACCOUNTS $77,620
-------------------------
-------------------------
(1) Excluding bank transfers between your accounts.
</TABLE>
<PAGE>
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re: FOCUS SURGERY, INC., Debtor. | Case No. 96-41107-N
| -----------
Employer's Tax Identification | CHAPTER 11
No.: 77-0332937 | MONTHLY OPERATING REPORT
| (General Business Case)
- ------------------------------------------
SUMMARY OF FINANCIAL STATUS
MONTH ENDED Jul-96
------------------
<TABLE>
<S> <C> <C> <C>
1. Debtor in possession (or trustee) hereby submits this Monthly Operating
Report on the Accrual Basis of accounting (or if checked here ___ the
Office of the U.S. Trustee or the Court has approved the Cash Basis of
Accounting for the Debtor). Dollars reported in ($ _____).
END OF END OF AS OF
CURRENT PRIOR PETITION
2. ASSET/LIABILITY SUMMARY MONTH MONTH FILING
----- ----- ------
Current Assets (Market Value) $1,712,184 $517,143 $502,204
---------- ---------- ----------
Total Assets (Market Value) $1,712,184 $2,167,143 $2,152,204
---------- ---------- ----------
Current Liabilities $87,298 $46,702
---------- ---------- ----------
Total Liabilities $944,111 $903,515 $831,829
---------- ---------- ----------
PETITION
CURRENT PRIOR DATE TO
3. STATEMENT OF CASH RECEIPTS & DISBURSEMENTS FOR MONTH MONTH MONTH MONTH END
----- ----- ---------
a. Total Receipts $250,000 $26,720 $354,008
---------- ---------- ----------
b. Total Disbursements $1,506 $11,204 $47,024
---------- ---------- ----------
c. Excess (Deficiency) of Receipts Over Disbursements (a - b) $248,494 $15,515 $306,984
---------- ---------- ----------
d. Cash Balance Beginning of Month $77,620 $62,105
---------- ----------
e. Cash Balance End of Month (c + d) $326,114 $77,620
---------- ----------
---------- ----------
4. POST-PETITION LIABILITIES & RECEIVABLES RECEIVABLES LIABILITIES
----------- -----------
Balance at End of Previous Month $46,702
---------- ----------
Balance at End of Current Month $87,298
---------- ----------
5. PAST DUE POST-PETITION LIABILITIES
Balance at End of Previous Month (over 30 days) $19,574
----------
Balance at End of Current Month (over 30 days) $19,517
----------
YES NO
---------- ----------
6. Are all federal, state, and local taxes current? (if no, attach schedule
of unpaid items) X
---------- ----------
7. Have any payments been made to pre-petition creditors, other than payments
in the normal course to secured creditors or lessors? (if yes, attach
listing including date of payment, amount of payment and name of payee) X
---------- ----------
8. Have any payments been made to officers, insiders, shareholders,
relatives? (if yes, attach listing including date of payment, amount and
reason for payment, and name of payee) X
---------- ----------
9. Have any payments been made to professionals? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
---------- ----------
10. If you answered yes to line 7,8, or 9, were all such payments approved by
the court? N/A
---------- ----------
11. Is the estate insured for replacement cost of assets and for general
liability? X
---------- ----------
12. Are U.S. Trustee quarterly fees current? X
---------- ----------
I declare under penalty of perjury that I have reviewed the above summary and attached financial statements, and after making
reasonable inquiry believe that these documents are correct.
Date: 8/29/96 /S/ Richard Redett
--------------- ------------------------------------------
Responsible Individual
</TABLE>
<PAGE>
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED JUL-96
----------
($ )
-----
<TABLE>
<CAPTION>
ASSETS
FROM SCHEDULES MARKET VALUE
-------------- ------------
<S> <C> <C> <C>
CURRENT ASSETS
1 Cash and cash equivalents - unrestricted $326,114
--------------
2 Cash and cash equivalents - restricted
--------------
3 Accounts receivable (net) A $1,373,000
--------------
4 Inventory B $0
--------------
5 Prepaid expenses $10,474
--------------
6 Other: Interest in insurance policies
-------------------------------- --------------
7 Payroll taxes $2,596
---------------------------------------- --------------
8 TOTAL CURRENT ASSETS $1,712,184
--------------
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 $1,712,184
--------------
--------------
NOTE:
Indicate the method used to estimate the market value of assets (e.g., appraisals; familiarity with comparable
market prices, etc.) and the date the value was determined.
</TABLE>
<PAGE>
LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($ )
-----
<TABLE>
<CAPTION>
LIABILITIES FROM SCHEDULES
--------------
<S> <C> <C> <C>
POST-PETITION
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 $38,144
--------------
33 Real property lease arrearage
--------------
34 Personal property lease arrearage
--------------
35 Accrued professional fees $48,454
--------------
36 Current portion of long-term debt (due within 12 months)
--------------
37 Other: Accrued fees $700
--------------------------------- --------------
38
---------------------------------------- --------------
39
---------------------------------------- --------------
40 TOTAL CURRENT LIABILITIES $87,298
--------------
41 LONG-TERM DEBT, NET OF CURRENT PORTION --------------
42 TOTAL POST-PETITION LIABILITIES $87,298
--------------
PRE-PETITION LIABILITIES (ALLOWED AMOUNT)
43 Secured claims E $115,778
--------------
44 Priority unsecured claims E $0
--------------
45 General unsecured claims E $741,034
--------------
46 TOTAL PRE-PETITION LIABILITIES $856,813
--------------
47 TOTAL LIABILITIES $944,111
--------------
EQUITY (DEFICIT)
48
---------------------------------------- --------------
49
---------------------------------------- --------------
50
---------------------------------------- --------------
51
---------------------------------------- --------------
52 Market value adjustment
--------------
53 TOTAL EQUITY (DEFICIT) $785,911
--------------
54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $1,730,021
--------------
--------------
</TABLE>
<PAGE>
SCHEDULES
(GENERAL BUSINESS CASE)
($ )
-----
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 $950,000 $18,627
----------- ---------------
31-60 Days $0 $701
----------- --------------- -
61-90 Days $0 | $19,517
----------- --------------- |-----------------
91+ Days $423,000 $18,816 -
----------- ---------------
Total accounts receivable/payable $1,373,000 $38,144
----------- ---------------
Allowance for doubtful accounts ---------------
-----------
Accounts receivable (net) $1,373,000
-----------
-----------
SCHEDULE B
INVENTORY/COST OF GOODS SOLD
<CAPTION>
TYPES AND AMOUNT OF INVENTORY(IES) COST OF GOODS SOLD
- ---------------------------------- ------------------
<S> <C> <C> <C>
INVENTORY(IES) Inventory Beginning of Month
BALANCE AT -----------------
END OF MONTH Add -
------------ Net purchases
Retail/Restaurants - -----------------
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
-------------
-------------
<CAPTION>
METHOD OF INVENTORY CONTROL INVENTORY VALUATION METHODS
- --------------------------- ---------------------------
<S> <C>
Do you have a functioning perpetual inventory Indicate by a checkmark method of inventory valuation used.
system?
Yes X No
---- ----
How often do you take a complete physical Valuation methods -
inventory? 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
<CAPTION>
DESCRIPTION COST MARKET VALUE
- ----------- ---- ------------
<S> <C> <C>
MACHINERY & EQUIPMENT -
See listing attached to original petition filing $0 $0
- ------------------------------------------------ ------------ ----------------
- - All equipment sold to Takai Hospital in
- ------------------------------------------------ ------------ ----------------
July 1996.
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
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
<CAPTION>
CLAIMED ALLOWED
LIST TOTAL CLAIMS FOR EACH CLASSIFICATION - AMOUNT AMOUNT (b)
- ------------------------------------------- ------ ----------
<S> <C> <C>
Secured claims (a) $115,778
--------- ----------
Priority claims other than taxes $0
--------- ----------
Priority tax claims $0
--------- ----------
General unsecured claims $741,034
--------- ----------
(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.
</TABLE>
<PAGE>
STATEMENT OF OPERATIONS
(GENERAL BUSINESS CASE)
FOR THE MONTH JUL-96
-----------
$
------------
<TABLE>
<CAPTION>
CURRENT MONTH
- ---------------------------------------------- CUMULATIVE NEXT MONTH
ACTUAL FORECAST VARIANCE (CASE TO DATE) FORECAST
------ -------- -------- -------------- --------
<S> <C> <C> <C> <C> <C> <C>
REVENUES
$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
- ---------- ---------- --------- ---------- ----------
$65,093 $65,093 $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
- ---------- ---------- --------- ---------- ----------
$12,577 $2,000 ($10,577) 20 Other Administrative $12,501 $7,000
- ---------- ---------- --------- ---------- ----------
$0 21 Interest
- ---------- ---------- --------- ---------- ----------
22 Other Expenses:
---------- ----------
$0 23 Writedown of receivables and other $22,000
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 24
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 25
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 26
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 27
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 28
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 29
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 30
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$77,670 $67,093 ($10,577) 31 TOTAL EXPENSES $381,361 $29,000
- ---------- ---------- --------- ---------- ----------
($77,670) ($67,093) ($10,577) 32 SUBTOTAL ($380,796) ($29,000)
- ---------- ---------- --------- ---------- ----------
REORGANIZATION ITEMS
$25,277 $25,000 ($277) 33 Professional Fees $113,224 $25,000
- ---------- ---------- --------- ---------- ----------
$0 34 Provisions for Rejected Executory Contracts
- ---------- ---------- --------- ---------- ----------
Interest Earned on Accumulated Cash
($0) $0 35 Resulting from Chp 11 Case $127
- ---------- ---------- --------- ---------- ----------
$450,000 ($450,000) 36 Gain or (Loss) from Sale of Equipment $450,000
- ---------- ---------- --------- ---------- ----------
$6,277 ($6,277) 37 Miscellaneous $10,201
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 38
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$481,554 $25,000 ($456,554) 39 TOTAL REORGANIZATION ITEMS $573,298 $25,000
- ---------- ---------- --------- ---------- ----------
($559,224) ($92,093) ($467,131) 40 NET PROFIT (LOSS) BEFORE FEDERAL & STATE TAXES ($954,094) ($54,000)
- ---------- ---------- --------- ---------- ----------
$0 41 Federal & State Income Taxes
- ---------- ---------- --------- ---------- ----------
($559,224) ($92,093) ($467,131) $37,414 42 NET PROFIT (LOSS) ($954,094) ($54,000)
- ---------- ---------- --------- ---------- ----------
- ---------- ---------- --------- ---------- ----------
EXPLANATION OF VARIANCE TO STATEMENT OF OPERATIONS
(FOR VARIANCES GREATER THAN +/- 10% ONLY)
In July, we received $250,000 deposit and a commitment of $950,000 from Takai Hospital for the purchase of assets, including
- -----------------------------------------------------------------------------------------------------------------------------------
inventory, fixed assets and patents. The assets were recorded at $1,650,000 or $450,000 more than the ultimate purchase
- -----------------------------------------------------------------------------------------------------------------------------------
price of $1,200,000, therefore, a loss of $450,000 was recorded in July.
- -----------------------------------------------------------------------------------------------------------------------------------
In July, a property tax bill for $10,522 was received from Alameda County and services or Bankruptcy Claims
- -----------------------------------------------------------------------------------------------------------------------------------
Administration were used for distribution of debtors' motions to all parties.
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
SUMMARY OF CASH RECEIPTS AND DISBURSEMENTS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED JUL-96
---------------------
<TABLE>
<S> <C> <C> <C>
CASH BALANCE BEGINNING OF MONTH $77,620
-----------------
CASH RECEIPTS (1) $250,000
-----------------
CASH DISBURSEMENTS (1) $1,506
-----------------
EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS $248,494
-----------------
CASH BALANCE END OF MONTH $326,114
-----------------
-----------------
RECAPITULATION OF FUNDS HELD AT END OF MONTH
ACCOUNT 1 ACCOUNT 2 ACCOUNT 3
--------- --------- ---------
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 $76,045 $69 $250,000
------------------------- ----------------------- -----------------
ACCOUNT 4 ACCOUNT 5 ACCOUNT 6
--------- --------- ---------
BANK
------------------------- ----------------- -----------------
ACCOUNT TYPE
------------------------- ----------------- -----------------
ACCOUNT NO.
------------------------- ----------------- -----------------
ACCOUNT PURPOSE
------------------------- ----------------- -----------------
BALANCE, END OF MONTH
------------------------- ----------------- -----------------
TOTAL FUNDS ON HAND FOR ALL ACCOUNTS $326,114
-------------------------
-------------------------
(1) Excluding bank transfers between your accounts.
</TABLE>
<PAGE>
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re: FOCUS SURGERY, INC., Debtor. | Case No. 96-41107-N
| -----------
Employer's Tax Identification | CHAPTER 11
No.: 77-0332937 | MONTHLY OPERATING REPORT
| (General Business Case)
- ------------------------------------------
SUMMARY OF FINANCIAL STATUS
MONTH ENDED Aug-96
------------------
<TABLE>
<S> <C> <C> <C>
1. Debtor in possession (or trustee) hereby submits this Monthly Operating
Report on the Accrual Basis of accounting (or if checked here ___ the
Office of the U.S. Trustee or the Court has approved the Cash Basis of
Accounting for the Debtor). Dollars reported in ($ _____).
END OF END OF AS OF
CURRENT PRIOR PETITION
2. ASSET/LIABILITY SUMMARY MONTH MONTH FILING
----- ----- ------
Current Assets (Market Value) $915,081 $1,712,184 $502,204
---------- ---------- ----------
Total Assets (Market Value) $915,081 $1,712,184 $2,152,204
---------- ---------- ----------
Current Liabilities $95,775 $87,298
---------- ---------- ----------
Total Liabilities $798,087 $944,111 $831,829
---------- ---------- ----------
PETITION
CURRENT PRIOR DATE TO
3. STATEMENT OF CASH RECEIPTS & DISBURSEMENTS FOR MONTH MONTH MONTH MONTH END
----- ----- ---------
a. Total Receipts $1,101,594 $250,000 $1,455,602
---------- ---------- ----------
b. Total Disbursements $773,143 $1,506 $820,611
---------- ---------- ----------
c. Excess (Deficiency) of Receipts Over Disbursements (a - b) $328,451 $248,494 $634,991
---------- ---------- ----------
d. Cash Balance Beginning of Month $326,114 $77,620
---------- ----------
e. Cash Balance End of Month (c + d) $654,565 $326,114
---------- ----------
---------- ----------
4. POST-PETITION LIABILITIES & RECEIVABLES RECEIVABLES LIABILITIES
----------- -----------
Balance at End of Previous Month $87,298
---------- ----------
Balance at End of Current Month $95,775
---------- ----------
5. PAST DUE POST-PETITION LIABILITIES
Balance at End of Previous Month (over 30 days) $19,517
----------
Balance at End of Current Month (over 30 days) $31,420
----------
YES NO
---------- ----------
6. Are all federal, state, and local taxes current? (if no, attach schedule
of unpaid items) X
---------- ----------
7. Have any payments been made to pre-petition creditors, other than payments
in the normal course to secured creditors or lessors? (if yes, attach
listing including date of payment, amount of payment and name of payee) X
---------- ----------
8. Have any payments been made to officers, insiders, shareholders,
relatives? (if yes, attach listing including date of payment, amount and
reason for payment, and name of payee) X
---------- ----------
9. Have any payments been made to professionals? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
---------- ----------
10. If you answered yes to line 7,8, or 9, were all such payments approved by
the court? N/A
---------- ----------
11. Is the estate insured for replacement cost of assets and for general
liability? X
---------- ----------
12. Are U.S. Trustee quarterly fees current? X
---------- ----------
I declare under penalty of perjury that I have reviewed the above summary and attached financial statements, and after making
reasonable inquiry believe that these documents are correct.
Date: 10/4/96 /S/ Richard Redett
--------------- ------------------------------------------
Responsible Individual
</TABLE>
<PAGE>
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED AUG-96
----------
($ )
-----
<TABLE>
<CAPTION>
ASSETS
FROM SCHEDULES MARKET VALUE
-------------- ------------
<S> <C> <C> <C>
CURRENT ASSETS
1 Cash and cash equivalents - unrestricted $654,565
--------------
2 Cash and cash equivalents - restricted
--------------
3 Accounts receivable (net) A $248,000
--------------
4 Inventory B $0
--------------
5 Prepaid expenses $9,920
--------------
6 Other: Interest in insurance policies
-------------------------------- --------------
7 Payroll taxes $2,596
---------------------------------------- --------------
8 TOTAL CURRENT ASSETS $915,081
--------------
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
----------------------------------------- --------------
23 in July 1996.
----------------------------------------- --------------
24
----------------------------------------- --------------
25 TOTAL OTHER ASSETS $0
--------------
26 TOTAL ASSETS $915,081
--------------
--------------
NOTE:
Indicate the method used to estimate the market value of assets (e.g., appraisals; familiarity with comparable
market prices, etc.) and the date the value was determined.
</TABLE>
<PAGE>
LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($ )
-----
<TABLE>
<CAPTION>
LIABILITIES FROM SCHEDULES
--------------
<S> <C> <C> <C>
POST-PETITION
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 $25,669
--------------
33 Real property lease arrearage
--------------
34 Personal property lease arrearage
--------------
35 Accrued professional fees $70,106
--------------
36 Current portion of long-term debt (due within 12 months)
--------------
37 Other: Accrued fees
--------------------------------- --------------
38
---------------------------------------- --------------
39
---------------------------------------- --------------
40 TOTAL CURRENT LIABILITIES $95,775
--------------
41 LONG-TERM DEBT, NET OF CURRENT PORTION --------------
42 TOTAL POST-PETITION LIABILITIES $95,775
--------------
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 $798,087
--------------
EQUITY (DEFICIT)
48
---------------------------------------- --------------
49
---------------------------------------- --------------
50
---------------------------------------- --------------
51
---------------------------------------- --------------
52 Market value adjustment
--------------
53 TOTAL EQUITY (DEFICIT) $116,994
--------------
54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $915,081
--------------
--------------
</TABLE>
<PAGE>
SCHEDULES
(GENERAL BUSINESS CASE)
($ )
-----
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 ($5,751)
----------- ---------------
31-60 Days $0 $11,903
----------- --------------- -
61-90 Days $0 $701 | $31,420
----------- --------------- |-----------------
91+ Days $248,000 $18,816 -
----------- ---------------
Total accounts receivable/payable $248,000 $25,669
----------- ---------------
Allowance for doubtful accounts ---------------
-----------
Accounts receivable (net) $248,000
-----------
-----------
SCHEDULE B
INVENTORY/COST OF GOODS SOLD
<CAPTION>
TYPES AND AMOUNT OF INVENTORY(IES) COST OF GOODS SOLD
- ---------------------------------- ------------------
<S> <C> <C> <C>
INVENTORY(IES) Inventory Beginning of Month
BALANCE AT -----------------
END OF MONTH Add -
------------ Net purchases
Retail/Restaurants - -----------------
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
-------------
-------------
<CAPTION>
METHOD OF INVENTORY CONTROL INVENTORY VALUATION METHODS
- --------------------------- ---------------------------
<S> <C>
Do you have a functioning perpetual inventory Indicate by a checkmark method of inventory valuation used.
system?
Yes X No
---- ----
How often do you take a complete physical Valuation methods -
inventory? 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
<CAPTION>
DESCRIPTION COST MARKET VALUE
- ----------- ---- ------------
<S> <C> <C>
MACHINERY & EQUIPMENT -
See listing attached to original petition filing $0 $0
- ------------------------------------------------ ------------ ----------------
- - All equipment sold to Takai Hospital in
- ------------------------------------------------ ------------ ----------------
July 1996.
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
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
<CAPTION>
CLAIMED ALLOWED
LIST TOTAL CLAIMS FOR EACH CLASSIFICATION - AMOUNT AMOUNT (b)
- ------------------------------------------- ------ ----------
<S> <C> <C>
Secured claims (a) $115,778
--------- ----------
Priority claims other than taxes $0
--------- ----------
Priority tax claims $0
--------- ----------
General unsecured claims $586,534
--------- ----------
(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.
</TABLE>
<PAGE>
STATEMENT OF OPERATIONS
(GENERAL BUSINESS CASE)
FOR THE MONTH AUG-96
-----------
$
------------
<TABLE>
<CAPTION>
CURRENT MONTH
- ---------------------------------------------- CUMULATIVE NEXT MONTH
ACTUAL FORECAST VARIANCE (CASE TO DATE) FORECAST
------ -------- -------- -------------- --------
<S> <C> <C> <C> <C> <C> <C>
REVENUES
$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
- ---------- ---------- --------- ---------- ----------
($607) $7,000 $7,607 20 Other Administrative $11,894 $3,700
- ---------- ---------- --------- ---------- ----------
$0 21 Interest
- ---------- ---------- --------- ---------- ----------
22 Other Expenses:
---------- ----------
$23,406 $22,000 ($1,406) 23 Writedown of receivables and other $23,406
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 24
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 25
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 26
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 27
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 28
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 29
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 30
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$22,798 $29,000 $6,202 31 TOTAL EXPENSES $404,159 $3,700
- ---------- ---------- --------- ---------- ----------
($22,798) ($29,000) $6,202 32 SUBTOTAL ($403,594) ($3,700)
- ---------- ---------- --------- ---------- ----------
REORGANIZATION ITEMS
$24,111 $25,000 $889 33 Professional Fees $137,335 $15,000
- ---------- ---------- --------- ---------- ----------
$0 34 Provisions for Rejected Executory Contracts
- ---------- ---------- --------- ---------- ----------
Interest Earned on Accumulated Cash
($0) $0 35 Resulting from Chp 11 Case $127
- ---------- ---------- --------- ---------- ----------
$0 36 Gain or (Loss) from Sale of Equipment $450,000
- ---------- ---------- --------- ---------- ----------
$0 37 Miscellaneous $10,201 $500
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$607,500 ($607,500) 38 Settlement with Paine Webber and Labeco $607,500
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$631,611 $25,000 ($606,611) 39 TOTAL REORGANIZATION ITEMS $1,204,909 $15,500
- ---------- ---------- --------- ---------- ----------
($654,410) ($54,000) ($600,410) 40 NET PROFIT (LOSS) BEFORE FEDERAL & STATE TAXES ($1,608,504) ($19,200)
- ---------- ---------- --------- ----------- ----------
$0 41 Federal & State Income Taxes
- ---------- ---------- --------- ----------- ----------
($654,410) ($54,000) ($600,410) 42 NET PROFIT (LOSS) ($6,108,504) ($19,200)
- ---------- ---------- --------- ----------- ----------
- ---------- ---------- --------- ----------- ----------
EXPLANATION OF VARIANCE TO STATEMENT OF OPERATIONS
(FOR VARIANCES GREATER THAN +/- 10% ONLY)
In July, a property tax bill for $10,522 was received from Alameda County and in August, the amount was negotiated down to
- -----------------------------------------------------------------------------------------------------------------------------------
approximately $1,500. We are waiting for formal confirmation of the final amount. In August, a settlement was reached
- -----------------------------------------------------------------------------------------------------------------------------------
with Paine Webber and Labeco regarding past disputed liabilities under technology funding and royalty agreements. Of the total
- -----------------------------------------------------------------------------------------------------------------------------------
of $762,000 paid in settlement, $154,500 had been recorded as a prepetition unsecured liability.
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
SUMMARY OF CASH RECEIPTS AND DISBURSEMENTS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED AUG-96
---------------------
<TABLE>
<S> <C> <C> <C>
CASH BALANCE BEGINNING OF MONTH $326,114
-----------------
CASH RECEIPTS (1) $1,101,594
-----------------
CASH DISBURSEMENTS (1) $773,143
-----------------
EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS $328,451
-----------------
CASH BALANCE END OF MONTH $654,565
-----------------
-----------------
RECAPITULATION OF FUNDS HELD AT END OF MONTH
ACCOUNT 1 ACCOUNT 2 ACCOUNT 3
--------- --------- ---------
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 $216,496 $69 $438,000
------------------------- ----------------------- -----------------
ACCOUNT 4 ACCOUNT 5 ACCOUNT 6
--------- --------- ---------
BANK
------------------------- ----------------- -----------------
ACCOUNT TYPE
------------------------- ----------------- -----------------
ACCOUNT NO.
------------------------- ----------------- -----------------
ACCOUNT PURPOSE
------------------------- ----------------- -----------------
BALANCE, END OF MONTH
------------------------- ----------------- -----------------
TOTAL FUNDS ON HAND FOR ALL ACCOUNTS $654,565
-------------------------
-------------------------
(1) Excluding bank transfers between your accounts.
</TABLE>
<PAGE>
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re: FOCUS SURGERY, INC., Debtor. | Case No. 96-41107-N
| -----------
Employer's Tax Identification | CHAPTER 11
No.: 77-0332937 | MONTHLY OPERATING REPORT
| (General Business Case)
- ------------------------------------------
SUMMARY OF FINANCIAL STATUS
MONTH ENDED Sep-96
------------------
<TABLE>
<S> <C> <C> <C>
1. Debtor in possession (or trustee) hereby submits this Monthly Operating
Report on the Accrual Basis of accounting (or if checked here ___ the
Office of the U.S. Trustee or the Court has approved the Cash Basis of
Accounting for the Debtor). Dollars reported in ($ _____).
END OF END OF AS OF
CURRENT PRIOR PETITION
2. ASSET/LIABILITY SUMMARY MONTH MONTH FILING
----- ----- ------
Current Assets (Market Value) $914,241 $915,081 $502,204
---------- ---------- ----------
Total Assets (Market Value) $914,241 $915,081 $2,152,204
---------- ---------- ----------
Current Liabilities $117,892 $95,775
---------- ---------- ----------
Total Liabilities $820,204 $798,087 $831,829
---------- ---------- ----------
PETITION
CURRENT PRIOR DATE TO
3. STATEMENT OF CASH RECEIPTS & DISBURSEMENTS FOR MONTH MONTH MONTH MONTH END
----- ----- ---------
a. Total Receipts $2 $1,101,594 $1,455,604
---------- ---------- ----------
b. Total Disbursements $2,105 $773,143 $822,716
---------- ---------- ----------
c. Excess (Deficiency) of Receipts Over Disbursements (a - b) ($2,103) $328,451 $632,888
---------- ---------- ----------
d. Cash Balance Beginning of Month $654,565 $326,114
---------- ----------
e. Cash Balance End of Month (c + d) $654,462 $654,565
---------- ----------
---------- ----------
4. POST-PETITION LIABILITIES & RECEIVABLES RECEIVABLES LIABILITIES
----------- -----------
Balance at End of Previous Month $87,298
---------- ----------
Balance at End of Current Month $117,892
---------- ----------
5. PAST DUE POST-PETITION LIABILITIES
Balance at End of Previous Month (over 30 days) $31,420
----------
Balance at End of Current Month (over 30 days) $22,773
----------
YES NO
---------- ----------
6. Are all federal, state, and local taxes current? (if no, attach schedule
of unpaid items) X
---------- ----------
7. Have any payments been made to pre-petition creditors, other than payments
in the normal course to secured creditors or lessors? (if yes, attach
listing including date of payment, amount of payment and name of payee) X
---------- ----------
8. Have any payments been made to officers, insiders, shareholders,
relatives? (if yes, attach listing including date of payment, amount and
reason for payment, and name of payee) X
---------- ----------
9. Have any payments been made to professionals? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
---------- ----------
10. If you answered yes to line 7,8, or 9, were all such payments approved by
the court? N/A
---------- ----------
11. Is the estate insured for replacement cost of assets and for general
liability? X
---------- ----------
12. Are U.S. Trustee quarterly fees current? X
---------- ----------
I declare under penalty of perjury that I have reviewed the above summary and attached financial statements, and after making
reasonable inquiry believe that these documents are correct.
Date: 10/25/96 /S/ Richard Redett
--------------- ------------------------------------------
Responsible Individual
</TABLE>
<PAGE>
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED SEP-96
----------
($ )
-----
<TABLE>
<CAPTION>
ASSETS
FROM SCHEDULES MARKET VALUE
-------------- ------------
<S> <C> <C> <C>
CURRENT ASSETS
1 Cash and cash equivalents - unrestricted $652,462
--------------
2 Cash and cash equivalents - restricted
--------------
3 Accounts receivable (net) A $248,000
--------------
4 Inventory B $0
--------------
5 Prepaid expenses $11,183
--------------
6 Other: Interest in insurance policies
-------------------------------- --------------
7 Payroll taxes $2,596
---------------------------------------- --------------
8 TOTAL CURRENT ASSETS $914,241
--------------
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 $914,241
--------------
--------------
NOTE:
Indicate the method used to estimate the market value of assets (e.g., appraisals; familiarity with comparable
market prices, etc.) and the date the value was determined.
---------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($ )
-----
<TABLE>
<CAPTION>
LIABILITIES FROM SCHEDULES
--------------
<S> <C> <C> <C>
POST-PETITION
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 $29,729
--------------
33 Real property lease arrearage
--------------
34 Personal property lease arrearage
--------------
35 Accrued professional fees $80,764
--------------
36 Current portion of long-term debt (due within 12 months)
--------------
37 Other: Other accruals $7,398
--------------------------------- --------------
38
---------------------------------------- --------------
39
---------------------------------------- --------------
40 TOTAL CURRENT LIABILITIES $117,892
--------------
41 LONG-TERM DEBT, NET OF CURRENT PORTION --------------
42 TOTAL POST-PETITION LIABILITIES $117,892
--------------
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 $820,204
--------------
EQUITY (DEFICIT)
48
---------------------------------------- --------------
49
---------------------------------------- --------------
50
---------------------------------------- --------------
51
---------------------------------------- --------------
52 Market value adjustment
--------------
53 TOTAL EQUITY (DEFICIT) $94,037
--------------
54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $914,241
--------------
--------------
</TABLE>
<PAGE>
SCHEDULES
(GENERAL BUSINESS CASE)
($ )
-----
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 $6,956
----------- ---------------
31-60 Days $0 $697
----------- --------------- -
61-90 Days $0 $2,559 | $22,773
----------- --------------- |-----------------
91+ Days $248,000 $19,517 -
----------- ---------------
Total accounts receivable/payable $248,000 $29,729
----------- ---------------
Allowance for doubtful accounts ---------------
-----------
Accounts receivable (net) $248,000
-----------
-----------
SCHEDULE B
INVENTORY/COST OF GOODS SOLD
<CAPTION>
TYPES AND AMOUNT OF INVENTORY(IES) COST OF GOODS SOLD
- ---------------------------------- ------------------
<S> <C> <C> <C>
INVENTORY(IES) Inventory Beginning of Month
BALANCE AT -----------------
END OF MONTH Add -
------------ Net purchases
Retail/Restaurants - -----------------
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
-------------
-------------
<CAPTION>
METHOD OF INVENTORY CONTROL INVENTORY VALUATION METHODS
- --------------------------- ---------------------------
<S> <C>
Do you have a functioning perpetual inventory Indicate by a checkmark method of inventory valuation used.
system?
Yes X No
---- ----
How often do you take a complete physical Valuation methods -
inventory? 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
<CAPTION>
DESCRIPTION COST MARKET VALUE
- ----------- ---- ------------
<S> <C> <C>
MACHINERY & EQUIPMENT -
See listing attached to original petition filing $0 $0
- ------------------------------------------------ ------------ ----------------
- - All equipment sold to Takai Hospital in
- ------------------------------------------------ ------------ ----------------
July 1996.
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
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
<CAPTION>
CLAIMED ALLOWED
LIST TOTAL CLAIMS FOR EACH CLASSIFICATION - AMOUNT AMOUNT (b)
- ------------------------------------------- ------ ----------
<S> <C> <C>
Secured claims (a) $115,778
--------- ----------
Priority claims other than taxes $0
--------- ----------
Priority tax claims $0
--------- ----------
General unsecured claims $586,534
--------- ----------
(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.
</TABLE>
<PAGE>
STATEMENT OF OPERATIONS
(GENERAL BUSINESS CASE)
FOR THE MONTH SEP-96
-----------
$
------------
<TABLE>
<CAPTION>
CURRENT MONTH
- ---------------------------------------------- CUMULATIVE NEXT MONTH
ACTUAL FORECAST VARIANCE (CASE TO DATE) FORECAST
------ -------- -------- -------------- --------
<S> <C> <C> <C> <C> <C> <C>
REVENUES
$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
- ---------- ---------- --------- ---------- ----------
$8,310 $3,700 ($4,610) 20 Other Administrative $20,204 $4,000
- ---------- ---------- --------- ---------- ----------
$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
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$8,310 $3,700 ($4,610) 31 TOTAL EXPENSES $412,470 $4,000
- ---------- ---------- --------- ---------- ----------
($8,310) ($3,700) ($4,610) 32 SUBTOTAL ($411,905) ($4,000)
- ---------- ---------- --------- ---------- ----------
REORGANIZATION ITEMS
$8,993 $15,000 $6,007 33 Professional Fees $146,328 $15,000
- ---------- ---------- --------- ---------- ----------
$0 34 Provisions for Rejected Executory Contracts
- ---------- ---------- --------- ---------- ----------
Interest Earned on Accumulated Cash
$2 ($2) 35 Resulting from Chp 11 Case $129
- ---------- ---------- --------- ---------- ----------
$0 36 Loss from Sale of Equipment, Inventory and $450,000
- ---------- ---------- --------- Patents ---------- ----------
$0 37 Miscellaneous $13,951
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$3,750 $500 ($3,250) 38 Settlement with Paine Webber and Labeco $607,500
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$12,741 $15,500 $2,759 39 TOTAL REORGANIZATION ITEMS $1,217,650 $15,500
- ---------- ---------- --------- ---------- ----------
($21,051) ($19,200) ($1,851) 40 NET PROFIT (LOSS) BEFORE FEDERAL & STATE TAXES ($1,629,555) ($19,000)
- ---------- ---------- --------- ----------- ----------
$0 41 Federal & State Income Taxes
- ---------- ---------- --------- ----------- ----------
($21,051) ($19,200) ($1,851) 42 NET PROFIT (LOSS) ($1,629,555) ($19,000)
- ---------- ---------- --------- ----------- ----------
- ---------- ---------- --------- ----------- ----------
EXPLANATION OF VARIANCE TO STATEMENT OF OPERATIONS
(FOR VARIANCES GREATER THAN +/- 10% ONLY)
In July, a property tax bill for $10,522 was received from Alameda County and the amount was negotiated down to $1,179. A reduction
- -----------------------------------------------------------------------------------------------------------------------------------
of $343 was recorded in September. In September, bankruptcy trustee fees of $3,750 and Delaware taxes of $2,060 were accrued.
- -----------------------------------------------------------------------------------------------------------------------------------
Professional fees were lower than expected as we awaited claim dispute responses. We also received notices of additional billings
- -----------------------------------------------------------------------------------------------------------------------------------
of past services that due to changes in address had not previously reached us. We have accrued such amounts and are
- -----------------------------------------------------------------------------------------------------------------------------------
investigating the vendor cliams.
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
SUMMARY OF CASH RECEIPTS AND DISBURSEMENTS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED SEP-96
---------------------
<TABLE>
<S> <C> <C> <C>
CASH BALANCE BEGINNING OF MONTH $654,565
-----------------
CASH RECEIPTS (1) $2
-----------------
CASH DISBURSEMENTS (1) $2,105
-----------------
EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS ($2,103)
-----------------
CASH BALANCE END OF MONTH $652,462
-----------------
-----------------
RECAPITULATION OF FUNDS HELD AT END OF MONTH
ACCOUNT 1 ACCOUNT 2 ACCOUNT 3
--------- --------- ---------
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 $15,000 $71 $438,000
------------------------- ----------------------- -----------------
ACCOUNT 4 ACCOUNT 5 ACCOUNT 6
--------- --------- ---------
BANK Silicon Valley Bank
------------------------- ----------------- -----------------
ACCOUNT TYPE Checking
------------------------- ----------------- -----------------
ACCOUNT NO. 3300023699
------------------------- ----------------- -----------------
ACCOUNT PURPOSE Money Market
------------------------- ----------------- -----------------
BALANCE, END OF MONTH $199,391
------------------------- ----------------- -----------------
TOTAL FUNDS ON HAND FOR ALL ACCOUNTS $652,462
-------------------------
-------------------------
(1) Excluding bank transfers between your accounts.
</TABLE>
<PAGE>
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re: FOCUS SURGERY, INC., Debtor. | Case No. 96-41107-N
| -----------
Employer's Tax Identification | CHAPTER 11
No.: 77-0332937 | MONTHLY OPERATING REPORT
| (General Business Case)
- ------------------------------------------
SUMMARY OF FINANCIAL STATUS
MONTH ENDED Oct-96
------------------
<TABLE>
<S> <C> <C> <C>
1. Debtor in possession (or trustee) hereby submits this Monthly Operating
Report on the Accrual Basis of accounting (or if checked here ___ the
Office of the U.S. Trustee or the Court has approved the Cash Basis of
Accounting for the Debtor). Dollars reported in ($ _____).
END OF END OF AS OF
CURRENT PRIOR PETITION
2. ASSET/LIABILITY SUMMARY MONTH MONTH FILING
----- ----- ------
Current Assets (Market Value) $901,999 $914,241 $502,204
---------- ---------- ----------
Total Assets (Market Value) $901,999 $914,241 $2,152,204
---------- ---------- ----------
Current Liabilities $118,473 $117,892
---------- ---------- ----------
Total Liabilities $820,786 $820,204 $831,829
---------- ---------- ----------
PETITION
CURRENT PRIOR DATE TO
3. STATEMENT OF CASH RECEIPTS & DISBURSEMENTS FOR MONTH MONTH MONTH MONTH END
----- ----- ---------
a. Total Receipts $4,105 $2 $1,459,709
---------- ---------- ----------
b. Total Disbursements $10,179 $2,105 $832,895
---------- ---------- ----------
c. Excess (Deficiency) of Receipts Over Disbursements (a - b) ($6,074) ($2,103) $626,814
---------- ---------- ----------
d. Cash Balance Beginning of Month $652,462 $654,565
---------- ----------
e. Cash Balance End of Month (c + d) $646,387 $652,462
---------- ----------
---------- ----------
4. POST-PETITION LIABILITIES & RECEIVABLES RECEIVABLES LIABILITIES
----------- -----------
Balance at End of Previous Month $117,892
---------- ----------
Balance at End of Current Month $118,473
---------- ----------
5. PAST DUE POST-PETITION LIABILITIES
Balance at End of Previous Month (over 30 days) $22,773
----------
Balance at End of Current Month (over 30 days) $20,139
----------
YES NO
---------- ----------
6. Are all federal, state, and local taxes current? (if no, attach schedule
of unpaid items) X
---------- ----------
7. Have any payments been made to pre-petition creditors, other than payments
in the normal course to secured creditors or lessors? (if yes, attach
listing including date of payment, amount of payment and name of payee) X
---------- ----------
8. Have any payments been made to officers, insiders, shareholders,
relatives? (if yes, attach listing including date of payment, amount and
reason for payment, and name of payee) X
---------- ----------
9. Have any payments been made to professionals? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
---------- ----------
10. If you answered yes to line 7, 8, or 9, were all such payments approved by
the court? N/A
---------- ----------
11. Is the estate insured for replacement cost of assets and for general
liability? X
---------- ----------
12. Are U.S. Trustee quarterly fees current? X
---------- ----------
I declare under penalty of perjury that I have reviewed the above summary and attached financial statements, and after making
reasonable inquiry believe that these documents are correct.
Date: 11/29/96 /S/ Richard Redett
--------------- ------------------------------------------
Responsible Individual
</TABLE>
<PAGE>
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED Oct-96
----------
($ )
-----
<TABLE>
<CAPTION>
ASSETS
FROM SCHEDULES MARKET VALUE
-------------- ------------
<S> <C> <C> <C>
CURRENT ASSETS
1 Cash and cash equivalents - unrestricted $646,387
--------------
2 Cash and cash equivalents - restricted
--------------
3 Accounts receivable (net) A $248,000
--------------
4 Inventory B $0
--------------
5 Prepaid expenses $5,016
--------------
6 Other: Interest in insurance policies
-------------------------------- --------------
7 Payroll taxes $2,596
---------------------------------------- --------------
8 TOTAL CURRENT ASSETS $901,999
--------------
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 $901,999
--------------
--------------
NOTE:
Indicate the method used to estimate the market value of assets (e.g., appraisals; familiarity with comparable
market prices, etc.) and the date the value was determined.
----------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($ )
-----
<TABLE>
<CAPTION>
LIABILITIES FROM SCHEDULES
--------------
<S> <C> <C> <C>
POST-PETITION
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 $27,394
--------------
33 Real property lease arrearage
--------------
34 Personal property lease arrearage
--------------
35 Accrued professional fees $91,079
--------------
36 Current portion of long-term debt (due within 12 months)
--------------
37 Other: Other accruals
--------------------------------- --------------
38
---------------------------------------- --------------
39
---------------------------------------- --------------
40 TOTAL CURRENT LIABILITIES $118,473
--------------
41 LONG-TERM DEBT, NET OF CURRENT PORTION --------------
42 TOTAL POST-PETITION LIABILITIES $118,473
--------------
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 $820,786
--------------
EQUITY (DEFICIT)
48
---------------------------------------- --------------
49
---------------------------------------- --------------
50
---------------------------------------- --------------
51
---------------------------------------- --------------
52 Market value adjustment
--------------
53 TOTAL EQUITY (DEFICIT) $81,214
--------------
54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $901,999
--------------
--------------
</TABLE>
<PAGE>
SCHEDULES
(GENERAL BUSINESS CASE)
($ )
-----
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 $7,255
----------- ---------------
31-60 Days $0
----------- --------------- -
61-90 Days $0 $676 | $20,139
----------- --------------- |-----------------
91+ Days $248,000 $19,463 -
----------- ---------------
Total accounts receivable/payable $248,000 $27,394
----------- ---------------
Allowance for doubtful accounts ---------------
-----------
Accounts receivable (net) $248,000
-----------
-----------
SCHEDULE B
INVENTORY/COST OF GOODS SOLD
<CAPTION>
TYPES AND AMOUNT OF INVENTORY(IES) COST OF GOODS SOLD
- ---------------------------------- ------------------
<S> <C> <C> <C>
INVENTORY(IES) Inventory Beginning of Month
BALANCE AT -----------------
END OF MONTH Add -
------------ Net purchases
Retail/Restaurants - -----------------
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
-------------
-------------
<CAPTION>
METHOD OF INVENTORY CONTROL INVENTORY VALUATION METHODS
- --------------------------- ---------------------------
<S> <C>
Do you have a functioning perpetual inventory Indicate by a checkmark method of inventory valuation used.
system?
Yes X No
---- ----
How often do you take a complete physical Valuation methods -
inventory? 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
<CAPTION>
DESCRIPTION COST MARKET VALUE
- ----------- ---- ------------
<S> <C> <C>
MACHINERY & EQUIPMENT -
See listing attached to original petition filing $0 $0
- ------------------------------------------------ ------------ ----------------
- - All equipment sold to Takai Hospital in
- ------------------------------------------------ ------------ ----------------
July 1996.
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
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
<CAPTION>
CLAIMED ALLOWED
LIST TOTAL CLAIMS FOR EACH CLASSIFICATION - AMOUNT AMOUNT (b)
- ------------------------------------------- ------ ----------
<S> <C> <C>
Secured claims (a) $115,778
--------- ----------
Priority claims other than taxes $0
--------- ----------
Priority tax claims $0
--------- ----------
General unsecured claims $586,534
--------- ----------
(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.
</TABLE>
<PAGE>
STATEMENT OF OPERATIONS
(GENERAL BUSINESS CASE)
FOR THE MONTH Oct-96
-----------
$
------------
<TABLE>
<CAPTION>
CURRENT MONTH
- ---------------------------------------------- CUMULATIVE NEXT MONTH
ACTUAL FORECAST VARIANCE (CASE TO DATE) FORECAST
------ -------- -------- -------------- --------
<S> <C> <C> <C> <C> <C> <C>
REVENUES
$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
- ---------- ---------- --------- ---------- ----------
$310 $4,000 $3,691 20 Other Administrative $20,514 $1,000
- ---------- ---------- --------- ---------- ----------
$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
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$310 $4,000 $3,691 31 TOTAL EXPENSES $412,780 $1,000
- ---------- ---------- --------- ---------- ----------
$(310) ($4,000) $3,691 32 SUBTOTAL ($412,215) ($1,000)
- ---------- ---------- --------- ---------- ----------
REORGANIZATION ITEMS
$16,482 $15,000 ($1,482) 33 Professional Fees $162,810 $15,000
- ---------- ---------- --------- ---------- ----------
$0 34 Provisions for Rejected Executory Contracts
- ---------- ---------- --------- ---------- ----------
Interest Earned on Accumulated Cash
($4,105) $4,105 35 Resulting from Chp 11 Case (4,234) ($1,400)
- ---------- ---------- --------- ---------- ----------
$0 36 Loss from Sale of Equipment, Inventory and $450,000
- ---------- ---------- --------- Patents ---------- ----------
$137 ($137) 37 Miscellaneous $14,088
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 38 Settlement with Paine Webber and Labeco $607,500
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$12,513 $15,000 $2,487 39 TOTAL REORGANIZATION ITEMS $1,230,163 $13,600
- ---------- ---------- --------- ---------- ----------
($12,823) ($19,000) $6,177 40 NET PROFIT (LOSS) BEFORE FEDERAL & STATE TAXES ($1,642,378) ($14,600)
- ---------- ---------- --------- ----------- ----------
$0 41 Federal & State Income Taxes
- ---------- ---------- --------- ----------- ----------
($12,823) ($19,000) $6,177 42 NET PROFIT (LOSS) ($1,642,378) ($14,600)
- ---------- ---------- --------- ----------- ----------
- ---------- ---------- --------- ----------- ----------
EXPLANATION OF VARIANCE TO STATEMENT OF OPERATIONS
(FOR VARIANCES GREATER THAN +/- 10% ONLY)
Administrative expenses continue to decline.
- -----------------------------------------------------------------------------------------------------------------------------------
Interest on deposits increased as available funds from sale of assets are invested until creditor payments are made. October
- -----------------------------------------------------------------------------------------------------------------------------------
report includes accumulated interest earned over the last quarter.
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
SUMMARY OF CASH RECEIPTS AND DISBURSEMENTS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED Oct-96
---------------------
<TABLE>
<S> <C> <C> <C>
CASH BALANCE BEGINNING OF MONTH $652,462
-----------------
CASH RECEIPTS (1) $4,105
-----------------
CASH DISBURSEMENTS (1) $10,179
-----------------
EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS ($6,074)
-----------------
CASH BALANCE END OF MONTH $646,387
-----------------
-----------------
RECAPITULATION OF FUNDS HELD AT END OF MONTH
ACCOUNT 1 ACCOUNT 2 ACCOUNT 3
--------- --------- ---------
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 $20,821 $71 $441,587
------------------------- ----------------------- -----------------
ACCOUNT 4 ACCOUNT 5 ACCOUNT 6
--------- --------- ---------
BANK Silicon Valley Bank
------------------------- ----------------- -----------------
ACCOUNT TYPE Checking
------------------------- ----------------- -----------------
ACCOUNT NO. 3300023699
------------------------- ----------------- -----------------
ACCOUNT PURPOSE Money market
------------------------- ----------------- -----------------
BALANCE, END OF MONTH $183,909
------------------------- ----------------- -----------------
TOTAL FUNDS ON HAND FOR ALL ACCOUNTS $646,387
-------------------------
-------------------------
(1) Excluding bank transfers between your accounts.
</TABLE>
<PAGE>
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re: FOCUS SURGERY, INC., Debtor. | Case No. 96-41107-N
| -----------
Employer's Tax Identification | CHAPTER 11
No.: 77-0332937 | MONTHLY OPERATING REPORT
| (General Business Case)
- ------------------------------------------
SUMMARY OF FINANCIAL STATUS
MONTH ENDED Nov-96
------------------
<TABLE>
<S> <C> <C> <C>
1. Debtor in possession (or trustee) hereby submits this Monthly Operating
Report on the Accrual Basis of accounting (or if checked here ___ the
Office of the U.S. Trustee or the Court has approved the Cash Basis of
Accounting for the Debtor). Dollars reported in ($ _____).
END OF END OF AS OF
CURRENT PRIOR PETITION
2. ASSET/LIABILITY SUMMARY MONTH MONTH FILING
----- ----- ------
Current Assets (Market Value) $902,743 $901,999 $502,204
---------- ---------- ----------
Total Assets (Market Value) $902,743 $901,999 $2,152,204
---------- ---------- ----------
Current Liabilities $130,439 $118,473
---------- ---------- ----------
Total Liabilities $832,751 $820,786 $831,829
---------- ---------- ----------
PETITION
CURRENT PRIOR DATE TO
3. STATEMENT OF CASH RECEIPTS & DISBURSEMENTS FOR MONTH MONTH MONTH MONTH END
----- ----- ---------
a. Total Receipts $416 $4,105 $1,456,020
---------- ---------- ----------
b. Total Disbursements $195 $10,179 $822,911
---------- ---------- ----------
c. Excess (Deficiency) of Receipts Over Disbursements (a - b) $222 ($6,074) $633,110
---------- ---------- ----------
d. Cash Balance Beginning of Month $646,387 $652,462
---------- ----------
e. Cash Balance End of Month (c + d) $646,609 $646,387
---------- ----------
---------- ----------
4. POST-PETITION LIABILITIES & RECEIVABLES RECEIVABLES LIABILITIES
----------- -----------
Balance at End of Previous Month $118,473
---------- ----------
Balance at End of Current Month $130,439
---------- ----------
5. PAST DUE POST-PETITION LIABILITIES
Balance at End of Previous Month (over 30 days) $20,139
----------
Balance at End of Current Month (over 30 days) $27,257
----------
YES NO
---------- ----------
6. Are all federal, state, and local taxes current? (if no, attach schedule
of unpaid items) X
---------- ----------
7. Have any payments been made to pre-petition creditors, other than payments
in the normal course to secured creditors or lessors? (if yes, attach
listing including date of payment, amount of payment and name of payee) X
---------- ----------
8. Have any payments been made to officers, insiders, shareholders,
relatives? (if yes, attach listing including date of payment, amount and
reason for payment, and name of payee) X
---------- ----------
9. Have any payments been made to professionals? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
---------- ----------
10. If you answered yes to line 7,8, or 9, were all such payments approved by
the court? N/A
---------- ----------
11. Is the estate insured for replacement cost of assets and for general
liability? X
---------- ----------
12. Are U.S. Trustee quarterly fees current? X
---------- ----------
I declare under penalty of perjury that I have reviewed the above summary and attached financial statements, and after making
reasonable inquiry believe that these documents are correct.
Date: 1/2/97 /S/ Richard Redett
--------------- ------------------------------------------
Responsible Individual
</TABLE>
<PAGE>
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED NOV-96
----------
($ )
-----
<TABLE>
<CAPTION>
ASSETS
FROM SCHEDULES MARKET VALUE
-------------- ------------
<S> <C> <C> <C>
CURRENT ASSETS
1 Cash and cash equivalents - unrestricted $646,609
--------------
2 Cash and cash equivalents - restricted
--------------
3 Accounts receivable (net) A $248,000
--------------
4 Inventory B $0
--------------
5 Prepaid expenses $4,938
--------------
6 Other: Interest receivable $600
-------------------------------- --------------
7 Payroll taxes $2,596
---------------------------------------- --------------
8 TOTAL CURRENT ASSETS $902,743
--------------
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 $902,743
--------------
--------------
NOTE:
Indicate the method used to estimate the market value of assets (e.g., appraisals; familiarity with comparable
market prices, etc.) and the date the value was determined.
---------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($ )
-----
<TABLE>
<CAPTION>
LIABILITIES FROM SCHEDULES
--------------
<S> <C> <C> <C>
POST-PETITION
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 $28,662
--------------
33 Real property lease arrearage
--------------
34 Personal property lease arrearage
--------------
35 Accrued professional fees $101,776
--------------
36 Current portion of long-term debt (due within 12 months)
--------------
37 Other: Other accruals
--------------------------------- --------------
38
---------------------------------------- --------------
39
---------------------------------------- --------------
40 TOTAL CURRENT LIABILITIES $130,439
--------------
41 LONG-TERM DEBT, NET OF CURRENT PORTION --------------
42 TOTAL POST-PETITION LIABILITIES $130,439
--------------
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 $832,751
--------------
EQUITY (DEFICIT)
48
---------------------------------------- --------------
49
---------------------------------------- --------------
50
---------------------------------------- --------------
51
---------------------------------------- --------------
52 Market value adjustment
--------------
53 TOTAL EQUITY (DEFICIT) $69,991
--------------
54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $902,743
--------------
--------------
</TABLE>
<PAGE>
SCHEDULES
(GENERAL BUSINESS CASE)
($ )
-----
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 $1,405
----------- ---------------
31-60 Days $0 $7,118
----------- --------------- -
61-90 Days $0 | $27,257
----------- --------------- |-----------------
91+ Days $248,000 $20,139 -
----------- ---------------
Total accounts receivable/payable $248,000 $28,662
----------- ---------------
Allowance for doubtful accounts ---------------
-----------
Accounts receivable (net) $248,000
-----------
-----------
SCHEDULE B
INVENTORY/COST OF GOODS SOLD
<CAPTION>
TYPES AND AMOUNT OF INVENTORY(IES) COST OF GOODS SOLD
- ---------------------------------- ------------------
<S> <C> <C> <C>
INVENTORY(IES) Inventory Beginning of Month
BALANCE AT -----------------
END OF MONTH Add -
------------ Net purchases
Retail/Restaurants - -----------------
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
-------------
-------------
<CAPTION>
METHOD OF INVENTORY CONTROL INVENTORY VALUATION METHODS
- --------------------------- ---------------------------
<S> <C>
Do you have a functioning perpetual inventory Indicate by a checkmark method of inventory valuation used.
system?
Yes X No
---- ----
How often do you take a complete physical Valuation methods -
inventory? 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
<CAPTION>
DESCRIPTION COST MARKET VALUE
- ----------- ---- ------------
<S> <C> <C>
MACHINERY & EQUIPMENT -
See listing attached to original petition filing $0 $0
- ------------------------------------------------ ------------ ----------------
- - All equipment sold to Takai Hospital in
- ------------------------------------------------ ------------ ----------------
July 1996.
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
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
<CAPTION>
CLAIMED ALLOWED
LIST TOTAL CLAIMS FOR EACH CLASSIFICATION - AMOUNT AMOUNT (b)
- ------------------------------------------- ------ ----------
<S> <C> <C>
Secured claims (a) $115,778
--------- ----------
Priority claims other than taxes $0
--------- ----------
Priority tax claims $0
--------- ----------
General unsecured claims $586,534
--------- ----------
(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.
</TABLE>
<PAGE>
STATEMENT OF OPERATIONS
(GENERAL BUSINESS CASE)
FOR THE MONTH NOV-96
-----------
$
------------
<TABLE>
<CAPTION>
CURRENT MONTH
- ---------------------------------------------- CUMULATIVE NEXT MONTH
ACTUAL FORECAST VARIANCE (CASE TO DATE) FORECAST
------ -------- -------- -------------- --------
<S> <C> <C> <C> <C> <C> <C>
REVENUES
$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
- ---------- ---------- --------- ---------- ----------
$1,463 $1,000 ($463) 20 Other Administrative $21,977 $1,000
- ---------- ---------- --------- ---------- ----------
$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
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$1,463 $1,000 ($463) 31 TOTAL EXPENSES $414,243 $1,000
- ---------- ---------- --------- ---------- ----------
($1,463) ($1,000) ($463) 32 SUBTOTAL ($413,678) ($1,000)
- ---------- ---------- --------- ---------- ----------
REORGANIZATION ITEMS
$10,776 $15,000 $4,224 33 Professional Fees $173,586 $10,000
- ---------- ---------- --------- ---------- ----------
$0 34 Provisions for Rejected Executory Contracts
- ---------- ---------- --------- ---------- ----------
Interest Earned on Accumulated Cash
($1,016) ($1,400) ($384) 35 Resulting from Chp 11 Case (5,250) ($1,000)
- ---------- ---------- --------- ---------- ----------
$0 36 Loss from Sale of Equipment, Inventory and $450,000
- ---------- ---------- --------- Patents ---------- ----------
$0 37 Miscellaneous $14,088
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 38 Settlement with Paine Webber and Labeco $607,500
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$9,759 $13,600 $3,841 39 TOTAL REORGANIZATION ITEMS $1,239,923 $9,000
- ---------- ---------- --------- ---------- ----------
($11,222) ($14,600) ($3,378) 40 NET PROFIT (LOSS) BEFORE FEDERAL & STATE TAXES ($1,653,601) ($10,000)
- ---------- ---------- --------- ----------- ----------
$0 41 Federal & State Income Taxes
- ---------- ---------- --------- ----------- ----------
($11,222) ($14,600) ($3,378) 42 NET PROFIT (LOSS) ($1,653,601) ($10,000)
- ---------- ---------- --------- ----------- ----------
- ---------- ---------- --------- ----------- ----------
EXPLANATION OF VARIANCE TO STATEMENT OF OPERATIONS
(FOR VARIANCES GREATER THAN +/- 10% ONLY)
Professional fees were lower than expected.
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
SUMMARY OF CASH RECEIPTS AND DISBURSEMENTS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED NOV-96
---------------------
<TABLE>
<S> <C> <C> <C>
CASH BALANCE BEGINNING OF MONTH $646,387
-----------------
CASH RECEIPTS (1) $416
-----------------
CASH DISBURSEMENTS (1) $195
-----------------
EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS $222
-----------------
CASH BALANCE END OF MONTH $646,609
-----------------
-----------------
RECAPITULATION OF FUNDS HELD AT END OF MONTH
ACCOUNT 1 ACCOUNT 2 ACCOUNT 3
--------- --------- ---------
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 $20,626 $71 $441,587
------------------------- ----------------------- -----------------
ACCOUNT 4 ACCOUNT 5 ACCOUNT 6
--------- --------- ---------
BANK Silicon Valley Bank
------------------------- ----------------- -----------------
ACCOUNT TYPE Checking
------------------------- ----------------- -----------------
ACCOUNT NO. 3300023699
------------------------- ----------------- -----------------
ACCOUNT PURPOSE Money Market
------------------------- ----------------- -----------------
BALANCE, END OF MONTH $184,325
------------------------- ----------------- -----------------
TOTAL FUNDS ON HAND FOR ALL ACCOUNTS $646,609
-------------------------
-------------------------
(1) Excluding bank transfers between your accounts.
</TABLE>
<PAGE>
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re: FOCUS SURGERY, INC., Debtor. | Case No. 96-41107-N
| -----------
Employer's Tax Identification | CHAPTER 11
No.: 77-0332937 | MONTHLY OPERATING REPORT
| (General Business Case)
- ------------------------------------------
SUMMARY OF FINANCIAL STATUS
MONTH ENDED Dec-96
------------------
<TABLE>
<S> <C> <C> <C>
1. Debtor in possession (or trustee) hereby submits this Monthly Operating
Report on the Accrual Basis of accounting (or if checked here ___ the
Office of the U.S. Trustee or the Court has approved the Cash Basis of
Accounting for the Debtor). Dollars reported in ($ _____).
END OF END OF AS OF
CURRENT PRIOR PETITION
2. ASSET/LIABILITY SUMMARY MONTH MONTH FILING
----- ----- ------
Current Assets (Market Value) $903,652 $902,743 $502,204
---------- ---------- ----------
Total Assets (Market Value) $903,652 $902,743 $2,152,204
---------- ---------- ----------
Current Liabilities $141,814 $130,439
---------- ---------- ----------
Total Liabilities $844,126 $832,751 $831,829
---------- ---------- ----------
PETITION
CURRENT PRIOR DATE TO
3. STATEMENT OF CASH RECEIPTS & DISBURSEMENTS FOR MONTH MONTH MONTH MONTH END
----- ----- ---------
a. Total Receipts $431 $416 $1,456,451
---------- ---------- ----------
b. Total Disbursements $0 $195 $822,911
---------- ---------- ----------
c. Excess (Deficiency) of Receipts Over Disbursements (a - b) $431 $222 $633,540
---------- ---------- ----------
d. Cash Balance Beginning of Month $646,609 $646,387
---------- ----------
e. Cash Balance End of Month (c + d) $647,040 $646,609
---------- ----------
---------- ----------
4. POST-PETITION LIABILITIES & RECEIVABLES RECEIVABLES LIABILITIES
----------- -----------
Balance at End of Previous Month $130,439
---------- ----------
Balance at End of Current Month $141,814
---------- ----------
5. PAST DUE POST-PETITION LIABILITIES
Balance at End of Previous Month (over 30 days) $27,257
----------
Balance at End of Current Month (over 30 days) $28,662
----------
YES NO
---------- ----------
6. Are all federal, state, and local taxes current? (if no, attach schedule
of unpaid items) X
---------- ----------
7. Have any payments been made to pre-petition creditors, other than payments
in the normal course to secured creditors or lessors? (if yes, attach
listing including date of payment, amount of payment and name of payee) X
---------- ----------
8. Have any payments been made to officers, insiders, shareholders,
relatives? (if yes, attach listing including date of payment, amount and
reason for payment, and name of payee) X
---------- ----------
9. Have any payments been made to professionals? (if yes, attach listing
including date of payment, amount of payment and name of payee) X
---------- ----------
10. If you answered yes to line 7,8, or 9, were all such payments approved by
the court? N/A
---------- ----------
11. Is the estate insured for replacement cost of assets and for general
liability? X
---------- ----------
12. Are U.S. Trustee quarterly fees current? X
---------- ----------
I declare under penalty of perjury that I have reviewed the above summary and attached financial statements, and after making
reasonable inquiry believe that these documents are correct.
Date: 1/97 /S/ Richard Redett
--------------- ------------------------------------------
Responsible Individual
</TABLE>
<PAGE>
BALANCE SHEET
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED DEC-96
----------
($ )
-----
<TABLE>
<CAPTION>
ASSETS
FROM SCHEDULES MARKET VALUE
-------------- ------------
<S> <C> <C> <C>
CURRENT ASSETS
1 Cash and cash equivalents - unrestricted $647,040
--------------
2 Cash and cash equivalents - restricted
--------------
3 Accounts receivable (net) A $248,000
--------------
4 Inventory B $0
--------------
5 Prepaid expenses $5,016
--------------
6 Other: Interest receivable $1,000
-------------------------------- --------------
7 Payroll taxes $2,596
---------------------------------------- --------------
8 TOTAL CURRENT ASSETS $903,652
--------------
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 $903,652
--------------
--------------
NOTE:
Indicate the method used to estimate the market value of assets (e.g., appraisals; familiarity with comparable
market prices, etc.) and the date the value was determined.
--------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
LIABILITIES AND EQUITY
(GENERAL BUSINESS CASE)
($ )
-----
<TABLE>
<CAPTION>
LIABILITIES FROM SCHEDULES
--------------
<S> <C> <C> <C>
POST-PETITION
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 $29,073
--------------
33 Real property lease arrearage
--------------
34 Personal property lease arrearage
--------------
35 Accrued professional fees $112,740
--------------
36 Current portion of long-term debt (due within 12 months)
--------------
37 Other: Other accruals
--------------------------------- --------------
38
---------------------------------------- --------------
39
---------------------------------------- --------------
40 TOTAL CURRENT LIABILITIES $141,814
--------------
41 LONG-TERM DEBT, NET OF CURRENT PORTION --------------
42 TOTAL POST-PETITION LIABILITIES $141,814
--------------
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 $844,126
--------------
EQUITY (DEFICIT)
48
---------------------------------------- --------------
49
---------------------------------------- --------------
50
---------------------------------------- --------------
51
---------------------------------------- --------------
52 Market value adjustment
--------------
53 TOTAL EQUITY (DEFICIT) $59,526
--------------
54 TOTAL LIABILITIES AND EQUITY (DEFICIT) $903,652
--------------
--------------
</TABLE>
<PAGE>
SCHEDULES
(GENERAL BUSINESS CASE)
($ )
-----
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 $411
----------- ---------------
31-60 Days $0 $1,405
----------- --------------- -
61-90 Days $0 $7,118 | $28,662
----------- --------------- |-----------------
91+ Days $248,000 $20,139 -
----------- ---------------
Total accounts receivable/payable $248,000 $29,073
----------- ---------------
Allowance for doubtful accounts ---------------
-----------
Accounts receivable (net) $248,000
-----------
-----------
SCHEDULE B
INVENTORY/COST OF GOODS SOLD
<CAPTION>
TYPES AND AMOUNT OF INVENTORY(IES) COST OF GOODS SOLD
- ---------------------------------- ------------------
<S> <C> <C> <C>
INVENTORY(IES) Inventory Beginning of Month
BALANCE AT -----------------
END OF MONTH Add -
------------ Net purchases
Retail/Restaurants - -----------------
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
-------------
-------------
<CAPTION>
METHOD OF INVENTORY CONTROL INVENTORY VALUATION METHODS
- --------------------------- ---------------------------
<S> <C>
Do you have a functioning perpetual inventory Indicate by a checkmark method of inventory valuation used.
system?
Yes X No
---- ----
How often do you take a complete physical Valuation methods -
inventory? 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
<CAPTION>
DESCRIPTION COST MARKET VALUE
- ----------- ---- ------------
<S> <C> <C>
MACHINERY & EQUIPMENT -
See listing attached to original petition filing $0 $0
- ------------------------------------------------ ------------ ----------------
- - All equipment sold to Takai Hospital in
- ------------------------------------------------ ------------ ----------------
July 1996.
- ------------------------------------------------ ------------ ----------------
- ------------------------------------------------ ------------ ----------------
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
<CAPTION>
CLAIMED ALLOWED
LIST TOTAL CLAIMS FOR EACH CLASSIFICATION - AMOUNT AMOUNT (b)
- ------------------------------------------- ------ ----------
<S> <C> <C>
Secured claims (a) $115,778
--------- ----------
Priority claims other than taxes $0
--------- ----------
Priority tax claims $0
--------- ----------
General unsecured claims $586,534
--------- ----------
(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.
</TABLE>
<PAGE>
STATEMENT OF OPERATIONS
(GENERAL BUSINESS CASE)
FOR THE MONTH DEC-96
-----------
$
------------
<TABLE>
<CAPTION>
CURRENT MONTH
- ---------------------------------------------- CUMULATIVE NEXT MONTH
ACTUAL FORECAST VARIANCE (CASE TO DATE) FORECAST
------ -------- -------- -------------- --------
<S> <C> <C> <C> <C> <C> <C>
REVENUES
$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
- ---------- ---------- --------- ---------- ----------
$411 $1,000 $589 20 Other Administrative $22,388 $1,000
- ---------- ---------- --------- ---------- ----------
$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
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$411 $1,000 $589 31 TOTAL EXPENSES $414,654 $1,000
- ---------- ---------- --------- ---------- ----------
($411) ($1,000) $589 32 SUBTOTAL ($414,089) ($1,000)
- ---------- ---------- --------- ---------- ----------
REORGANIZATION ITEMS
$10,964 $10,000 ($964) 33 Professional Fees $184,550 $10,000
- ---------- ---------- --------- ---------- ----------
$0 34 Provisions for Rejected Executory Contracts
- ---------- ---------- --------- ---------- ----------
Interest Earned on Accumulated Cash
($831) ($1,000) ($169) 35 Resulting from Chp 11 Case (6,081) ($1,000)
- ---------- ---------- --------- ---------- ----------
$0 36 Loss from Sale of Equipment, Inventory and $450,000
- ---------- ---------- --------- Patents ---------- ----------
$0 37 Miscellaneous $14,088
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$0 38 Settlement with Paine Webber and Labeco $607,500
- ---------- ---------- --------- ---------------------------------------- ---------- ----------
$10,133 $9,000 $1,133 39 TOTAL REORGANIZATION ITEMS $1,250,057 $9,000
- ---------- ---------- --------- ---------- ----------
($10,544) ($10,000) ($544) 40 NET PROFIT (LOSS) BEFORE FEDERAL & STATE TAXES ($1,664,146) ($10,000)
- ---------- ---------- --------- ----------- ----------
$0 41 Federal & State Income Taxes
- ---------- ---------- --------- ----------- ----------
($10,544) ($10,000) ($544) 42 NET PROFIT (LOSS) ($1,664,146) ($10,000)
- ---------- ---------- --------- ----------- ----------
- ---------- ---------- --------- ----------- ----------
EXPLANATION OF VARIANCE TO STATEMENT OF OPERATIONS
(FOR VARIANCES GREATER THAN +/- 10% ONLY)
Professional fees were lower than expected.
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
SUMMARY OF CASH RECEIPTS AND DISBURSEMENTS
(GENERAL BUSINESS CASE)
FOR THE MONTH ENDED DEC-96
---------------------
<TABLE>
<S> <C> <C> <C>
CASH BALANCE BEGINNING OF MONTH $646,609
-----------------
CASH RECEIPTS (1) $431
-----------------
CASH DISBURSEMENTS (1)
-----------------
EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS $431
-----------------
CASH BALANCE END OF MONTH $647,040
-----------------
-----------------
RECAPITULATION OF FUNDS HELD AT END OF MONTH
ACCOUNT 1 ACCOUNT 2 ACCOUNT 3
--------- --------- ---------
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 $20,626 $71 $441,587
------------------------- ----------------------- -----------------
ACCOUNT 4 ACCOUNT 5 ACCOUNT 6
--------- --------- ---------
BANK Silicon Valley Bank
------------------------- ----------------- -----------------
ACCOUNT TYPE Checking
------------------------- ----------------- -----------------
ACCOUNT NO. 3300023699
------------------------- ----------------- -----------------
ACCOUNT PURPOSE Money market
------------------------- ----------------- -----------------
BALANCE, END OF MONTH $184,756
------------------------- ----------------- -----------------
TOTAL FUNDS ON HAND FOR ALL ACCOUNTS $647,040
-------------------------
-------------------------
(1) Excluding bank transfers between your accounts.
</TABLE>
|
|