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<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________
FORM 8 - K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities and Exchange Act of 1934
Date of Report (Date of earliest event reported) NOVEMBER 30, 1997
------------------------
FOCUS SURGERY, INC.
- ---------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
DELAWARE 0-22136 77-0332937
- ---------------------------------------------------------------------------
(State or other jurisdiction of (Commission File (IRS Employer
incorporation) Number) Identification No.)
113 TYNAN WAY, PORTOLA VALLEY, CA 94028
- ---------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (415) 529-0730
---------------------
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. 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
99.23 Summary of Financial Status of the Registrant for the month
ended November 1997, as filed with the United States
Bankruptcy Court, Northern District of California,
Oakland division.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Focus Surgery, Inc.
------------------------------------
(Registrant)
Date: January 12, 1998 By: /s/ RICK REDETT
-------------------------------
Name: Rick Redett
Title: President and Chief Executive
Officer
<PAGE>
Exhibit 99.23
<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-97
----------
1. Debtor in possession (or trustee) hereby submits this Monthly Operating
Report on the Accrual Basis of accounting (or if checked
here ___ the Office of the U.S. Trustee or the Court has approved the Cash
Basis of Accounting for the Debtor). Dollars reported in ($ _____).
<TABLE>
<CAPTION>
End of End of As of
Current Prior Petition
Month Month Filing
2. Asset/liability Summary ----- ----- ------
<S> <C> <C> <C>
CURRENT ASSETS (MARKET VALUE) $506,043 $527,479 $502,204
---------- ---------- ------------
TOTAL ASSETS (MARKET VALUE) $506,043 $527,479 $2,152,204
---------- ---------- ------------
CURRENT LIABILITIES $118,847 $106,418
---------- ---------- ------------
TOTAL LIABILITIES $468,847 $456,418 $831,829
---------- ---------- ------------
Petition
Current Prior Date to
Month Month Month End
3. Statement of Cash Receipts & Disbursements for Month ----- ----- ---------
A. TOTAL RECEIPTS $1,769 $27,930 $1,505,592
---------- ---------- ------------
B. TOTAL DISBURSEMENTS $1,205 $285 $1,019,122
---------- ---------- ------------
C. EXCESS (DEFICIENCY) OF RECEIPTS OVER DISBURSEMENTS (a - b) $564 $27,645 $486,470
---------- ---------- ------------
D. CASH BALANCE BEGINNING OF MONTH $505,479 $477,834
---------- ----------
E. CASH BALANCE END OF MONTH (c + d) $506,043 $505,479
---------- ----------
---------- ----------
Receivables Liabilities
4. Post-petition Liabilities & Receivables ----------- -----------
BALANCE AT END OF PREVIOUS MONTH $106,418
---------- -------------
BALANCE AT END OF CURRENT MONTH $118,847
---------- -------------
5. Past Due Post-Petition Liabilities
BALANCE AT END OF PREVIOUS MONTH (OVER 30 DAYS) $24,510
-------------
BALANCE AT END OF CURRENT MONTH (OVER 30 DAYS) $24,240
-------------
Yes No
6. Are all federal, state, and local taxes current? (if no, --- --
attach schedule of unpaid items) X
---------- -------------
7. Have any payments been made to pre-petition creditors,
other than payments in the normal course to secured
creditors or lessors? (if yes, attach listing including
date of payment, amount of payment and name of payee) X
---------- -------------
8. Have any payments been made to officers, insiders,
shareholders, relatives? (if yes, attach listing including
date of payment, amount and reason for payment, and name of
payee) X
---------- -------------
9. Have any payments been made to professionals? (if yes,
attach listing including date of payment, amount of payment
and name of payee) X
---------- -------------
10. If you answered yes to line 7,8, or 9, were all such payments
approved by the court?
---------- -------------
11. Is the estate insured for replacement cost of assets and for
general liability? X
---------- -------------
12. Are U.S. Trustee quarterly fees current? X
---------- -------------
</TABLE>
I declare under penalty of perjury that I have reviewed the above summary
and attached financial statements, and after making reasonable inquiry
believe that these documents are correct.
Date: January 6, 1998 /s/ RICK REDETT
--------------- ---------------------------------
RESPONSIBLE INDIVIDUAL
<PAGE>
BALANCE SHEET
(General Business Case)
For the Month Ended NOV-97
---------
($_____)
Assets
<TABLE>
<CAPTION>
From Schedules Market Value
Current Assets -------------- ------------
<S> <C> <C>
1 CASH AND CASH EQUIVALENTS - UNRESTRICTED $506,043
----------------
2 CASH AND CASH EQUIVALENTS - RESTRICTED
----------------
3 ACCOUNTS RECEIVABLE (NET) A
----------------
4 INVENTORY B $0
----------------
5 PREPAID EXPENSES
----------------
6 OTHER: INTEREST RECEIVABLE
------------------------------------ ----------------
7
------------------------------------------- ----------------
8 Total Current Assets $506,043
----------------
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 $506,043
----------------
----------------
</TABLE>
NOTE:
Indicate the method used to estimate the market value of assets (e.g.,
appraisals; familiarity with comparable market prices, etc.) and the date
the value was determined. ------------------------------------------------
--------------------------------------------------------------------------
--------------------------------------------------------------------------
--------------------------------------------------------------------------
--------------------------------------------------------------------------
--------------------------------------------------------------------------
<PAGE>
LIABILITIES AND EQUITY
(General Business Case)
($_____)
<TABLE>
<CAPTION>
Liabilities From Schedules
Post-Petition --------------
<S> <C> <C>
Current Liabilities
27 SALARIES AND WAGES
----------------
28 PAYROLL TAXES
----------------
29 REAL AND PERSONAL PROPERTY TAXES
----------------
30 INCOME TAXES
----------------
31 NOTES PAYABLE (SHORT TERM)
----------------
32 ACCOUNTS PAYABLE (TRADE) A $24,765
----------------
33 REAL PROPERTY LEASE ARREARAGE
----------------
34 PERSONAL PROPERTY LEASE ARREARAGE
----------------
35 ACCRUED PROFESSIONAL FEES $68,282
----------------
36 CURRENT PORTION OF LONG-TERM DEBT (DUE WITHIN
12 MONTHS)
----------------
37 OTHER: OTHER ACCRUALS $25,800
------------------------------------ ----------------
38
-------------------------------------------- ----------------
39
-------------------------------------------- ----------------
40 Total Current Liabilities $118,847
----------------
41 Long-Term Debt, Net of Current Portion
----------------
42 Total Post-Petition Liabilities $118,847
----------------
Pre-Petition Liabilities (allowed amount)
43 SECURED CLAIMS E
----------------
44 PRIORITY UNSECURED CLAIMS E $0
----------------
45 GENERAL UNSECURED CLAIMS E $350,000
----------------
46 Total Pre-Petition Liabilities $350,000
----------------
47 Total Liabilities $468,847
----------------
Equity (Deficit)
48
-------------------------------------------- ----------------
49
-------------------------------------------- ----------------
50
-------------------------------------------- ----------------
51
-------------------------------------------- ----------------
52 MARKET VALUE ADJUSTMENT
----------------
53 Total Equity (Deficit) $37,196
----------------
54 Total Liabilities and Equity (Deficit) $506,043
----------------
----------------
</TABLE>
<PAGE>
SCHEDULES
(General Business Case)
($____)
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 $525
-------------- -----------------
31-60 DAYS $0
-------------- -----------------
61-90 DAYS $0 $24,240
-------------- ----------------- ------------------
91+ DAYS $0 $24,240
-------------- -----------------
TOTAL ACCOUNTS RECEIVABLE/PAYABLE $0 $24,765
-------------- -----------------
-----------------
ALLOWANCE FOR DOUBTFUL ACCOUNTS
--------------
ACCOUNTS RECEIVABLE (NET) $0
--------------
--------------
</TABLE>
Schedule B
Inventory/Cost of Goods Sold
<TABLE>
<CAPTION>
Types and Amount of Inventory(ies) Cost of Goods Sold
- ---------------------------------- ------------------
<S> <C>
Inventory(ies) INVENTORY BEGINNING OF MONTH _________________
Balance at
End of Month
------------
ADD -
RETAIL/RESTAURANTS - NET PURCHASES _________________
PRODUCT FOR RESALE __________________ DIRECT LABOR _________________
MANUFACTURING OVERHEAD _________________
DISTRIBUTION - FREIGHT IN _________________
PRODUCT FOR RESALE __________________ OTHER:
_____________________________ _________________
MANUFACTURER - _____________________________ _________________
RAW MATERIALS $0
__________________
WORK-IN-PROGRESS $0 LESS -
__________________
FINISHED GOODS $0 INVENTORY END OF MONTH _________________
__________________ SHRINKAGE _________________
PERSONAL USE _________________
OTHER - __________________
EXPLAIN ___________
___________________ COST OF GOODS SOLD $0
_________________
TOTAL $0 _________________
__________________
__________________
Method of Inventory Control Inventory Valuation Methods
- --------------------------- ---------------------------
DO YOU HAVE A FUNCTIONING PERPETUAL INVENTORY SYSTEM? INDICATE BY A CHECKMARK METHOD OF INVENTORY VALUATION USED.
YES X NO
--- ---
HOW OFTEN DO YOU TAKE A COMPLETE PHYSICAL INVENTORY? VALUATION METHODS -
FIFO COST X
_________
WEEKLY _____ LIFO COST _________
MONTHLY _____ LOWER OF COST OR
QUARTERLY _____ MARKET X
SEMI-ANNUALLY _____ _________
ANNUALLY X RETAIL METHOD _________
_____
OTHER - _________
DATE OF LAST PHYSICAL INVENTORY WAS 12/31/94 EXPLAIN
__________________ ___________________________________
DATE OF NEXT PHYSICAL INVENTORY IS NOT SCHEDULED ___________________________________
__________________
</TABLE>
<PAGE>
Schedule C
Real Property
<TABLE>
<CAPTION>
Description Cost Market Value
- ----------- ---- ------------
<S> <C> <C>
- -------------------------------------------------- ------------ ---------------
- -------------------------------------------------- ------------ ---------------
- -------------------------------------------------- ------------ ---------------
- -------------------------------------------------- ------------ ---------------
Total $0 $0
------------ ---------------
------------ ---------------
Schedule D
Other Depreciable Assets
Description Cost Market Value
- ----------- ---- ------------
Machinery & Equipment -
SEE LISTING ATTACHED TO ORIGINAL PETITION FILING - $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
Claimed Allowed
List Total Claims For Each Classification - Amount Amount (b)
- ------------------------------------------- ------ ----------
SECURED CLAIMS (A) $115,778
------------ ---------------
PRIORITY CLAIMS OTHER THAN TAXES $0
------------ ---------------
PRIORITY TAX CLAIMS $0
------------ ---------------
GENERAL UNSECURED CLAIMS $586,534 $350,000
------------ ---------------
</TABLE>
(a) LIST TOTAL AMOUNT OF CLAIMS EVEN IF UNDER SECURED.
(b) ESTIMATED AMOUNT OF CLAIM TO BE ALLOWED AFTER COMPROMISE OR LITIGATION.
AS AN EXAMPLE, YOU ARE A DEFENDANT IN A LAWSUIT ALLEGING DAMAGE OF
$10,000,000 AND A PROOF OF CLAIM IS FILED IN THAT AMOUNT. YOU BELIEVE
THAT YOU CAN SETTLE THE CASE FOR A CLAIM OF $3,000,000. FOR
SCHEDULE E REPORTING PURPOSES YOU SHOULD LIST $10,000,000 AS THE
CLAIMED AMOUNT AND $3,000,000 AS THE ALLOWED AMOUNT.
<PAGE>
Schedule F
STATEMENT OF OPERATIONS
(General Business Case)
For the Month Ended NOV-97
----------
$___________
<TABLE>
<CAPTION>
Current Month
________________________________ Cumulative Next Month
Actual Forecast Variance (Case to Date) Forecast
______ ________ ________ ______________ ________
<S> <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
_________ _________ __________ ___________ ___________
$1,725 $1,000 ($725) 20 OTHER ADMINISTRATIVE $39,243 $1,000
_________ _________ __________ ___________ ___________
$0 21 INTEREST
_________ _________ __________ ___________ ___________
22 OTHER EXPENSES:
_________ _________ __________ ___________ ___________
$22,000 $22,000 $0 23 WRITEDOWN OF RECEIVABLES AND OTHER $274,406 $800
_________ _________ __________ ________________________________________ ___________ ___________
$0 24
_________ _________ __________ ________________________________________ ___________ ___________
$0 25
_________ _________ __________ ________________________________________ ___________ ___________
$0 26
_________ _________ __________ ________________________________________ ___________ ___________
$0 27
_________ _________ __________ ________________________________________ ___________ ___________
$0 28
_________ _________ __________ ________________________________________ ___________ ___________
$0 29
_________ _________ __________ ________________________________________ ___________ ___________
$0 30
_________ _________ __________ ________________________________________ ___________ ___________
$23,725 $23,000 ($725) 31 Total Expenses $682,509 $1,800
_________ _________ __________ ___________ ___________
($23,725) ($23,000) ($725) 32 Subtotal ($681,944) ($1,800)
_________ _________ __________ ___________ ___________
Reorganization Items
$12,174 $4,000 ($8,174) 33 PROFESSIONAL FEES $253,355 $4,000
_________ _________ __________ ___________ ___________
$0 34 PROVISIONS FOR REJECTED EXECUTORY CONTRACTS
_________ _________ __________ ___________ ___________
35 INTEREST EARNED ON ACCUMULATED CASH
___________ ___________
($1,769) ($1,650) $119 RESULTING FROM CHP 11 CASE (25,118) ($1,650)
_________ _________ __________ ___________ ___________
$0 36 LOSS FROM SALE OF EQUIPMENT, INVENTORY
AND PATENTS $450,000
_________ _________ __________ ___________ ___________
$0 37 MISCELLANEOUS $16,702
_________ _________ __________ __________________________________________ ___________ ___________
$0 38 SETTLEMENTS $662,500
_________ _________ __________ __________________________________________ ___________ ___________
$10,405 $2,350 ($8,055) 39 Total Reorganization Items $1,357,439 $2,350
_________ _________ __________ ___________ ___________
($34,129) ($25,350) ($8,779) 40 Net Profit (Loss) Before Federal &
State Taxes ($2,039,382) ($4,150)
_________ _________ __________ ___________ ___________
$0 41 FEDERAL & STATE INCOME TAXES
_________ _________ __________ ___________ ___________
($34,129) ($25,350) ($8,779) 42 Net Profit (Loss) ($2,039,382) ($4,150)
_________ _________ __________ ___________ ___________
_________ _________ __________ ___________ ___________
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 NOV-97
--------------
<TABLE>
<S> <C>
CASH BALANCE BEGINNING OF MONTH $505,479
--------------
--------------
Cash Receipts (1) $1,769
--------------
Cash Disbursements (1) $1,205
--------------
Excess (Deficiency) of Receipts Over Disbursements $564
--------------
Cash Balance End of Month $506,043
--------------
--------------
</TABLE>
Recapitulation of Funds Held at End of Month
- --------------------------------------------
<TABLE>
<CAPTION>
Account 1 Account 2 Account 3
--------- --------- ---------
<S> <C> <C> <C>
Bank Silicon Valley Bank Merrill Lynch Trust acct -
---------------------------- ---------------- -----------------
Account Type Checking Checking Murray & Murray
---------------------------- ---------------- -----------------
Account No. 3300023699 233-07K66
---------------------------- ---------------- -----------------
Account Purpose General operating acct. Investment
---------------------------- ---------------- -----------------
Balance, End of Month $5,098 $71 $384,540
---------------------------- ---------------- -----------------
Account 4 Account 5 Account 6
--------- --------- ---------
Bank Silicon Valley Bank
---------------------------- ---------------- -----------------
Account Type Checking
---------------------------- ---------------- -----------------
Account No. 3300023699
---------------------------- ---------------- -----------------
Account Purpose Money market
---------------------------- ---------------- -----------------
Balance, End of Month $116,335
---------------------------- ---------------- -----------------
Total Funds on Hand for all Accounts $506,043
----------------------------
----------------------------
</TABLE>
(1) EXCLUDING BANK TRANSFERS BETWEEN YOUR ACCOUNTS.
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