Adjustments upon Effective Date | |||||||||||||||
Predecessor June 30, 2013 | Conversion of Debt for Equity | Fresh Start | Successor July 1, 2013 | ||||||||||||
ASSETS | |||||||||||||||
Current assets: | |||||||||||||||
Cash | $ | 312,000 | $ | - | $ | - | $ | 312,000 | |||||||
Accounts receivable | 464,000 | - | - | 464,000 | |||||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 151,000 | - | - | 151,000 | |||||||||||
Inventories | 560,000 | - | 121,000 | (a) | 681,000 | ||||||||||
Prepaid expenses and other current assets | 291,000 | - | - | 291,000 | |||||||||||
Total current assets | 1,778,000 | - | 121,000 | 1,899,000 | |||||||||||
Property and equipment | 1,304,000 | - | - | 1,304,000 | |||||||||||
Patents and Trademarks | 179,000 | - | (179,000 | ) | (b) | - | |||||||||
In-process research and development | - | - | 35,779,000 | (b) | 35,779,000 | ||||||||||
Goodwill | 2,131,000 | - | 1,766,000 | (c) | 3,897,000 | ||||||||||
Other assets | 536,000 | - | - | 536,000 | |||||||||||
Total assets | $ | 5,928,000 | $ | - | $ | 37,487,000 | $ | 43,415,000 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | |||||||||||||||
Liabilities not subject to compromise: | |||||||||||||||
Current liabilities: | |||||||||||||||
Accounts payable | $ | 787,000 | $ | - | $ | - | $ | 787,000 | |||||||
Accrued liabilities | 844,000 | (208,000 | ) | (d) | - | 636,000 | |||||||||
Customer deposits | 2,000 | - | - | 2,000 | |||||||||||
Billing in excess of costs and estimated earnings | 73,000 | - | - | 73,000 | |||||||||||
Notes payable, related party | 3,033,000 | (3,033,000 | ) | (e) | - | - | |||||||||
Current maturities of long term debt | - | 18,000 | (f) | - | 18,000 | ||||||||||
Total current liabilities | 4,739,000 | (3,223,000 | ) | - | 1,516,000 | ||||||||||
Long term debt, less current maturities | - | 311,000 | (g) | - | 311,000 | ||||||||||
Other | 26,000 | - | - | 26,000 | |||||||||||
Total liabilities not subject to compromise | 4,765,000 | (2,912,000 | ) | - | 1,853,000 | ||||||||||
Liabilities subject to compromise | 44,350,000 | (44,350,000 | ) | (f)(g)(h) | - | - | |||||||||
Total liabilities | 49,115,000 | (47,262,000 | ) | - | 1,853,000 | ||||||||||
Stockholders' Equity (Deficit): | |||||||||||||||
Preferred stock | - | - | - | - | |||||||||||
Predecessor common stock | 1,465,000 | (1,465,000 | ) | (i) | - | - | |||||||||
Predecessor additional paid-in capital | 131,398,000 | - | (131,398,000 | ) | (j) | - | |||||||||
Successor common stock | - | 1,000,000 | (d)(h) | - | 1,000,000 | ||||||||||
Successor additional paid-in capital | - | 40,562,000 | (d)(h) | - | 40,562,000 | ||||||||||
Accumulated deficit | (176,050,000 | ) | 7,165,000 | (d)(e)(h)(i) | 168,885,000 | (j) | - | ||||||||
Total stockholders' equity (deficit) | (43,187,000 | ) | 47,262,000 | 37,487,000 | 41,562,000 | ||||||||||
Total liabilities and stockholders' equity (deficit) | $ | 5,928,000 | $ | - | $ | 37,487,000 | $ | 43,415,000 |
| (a) | To adjust inventory from lower of cost or market to fair value (expected selling price). |
| (b) | Adjustment to reflect the portion of the reorganization value which was attributed to identified intangible assets. |
| (c) | To record the excess of the reorganization value over the amount assigned to identifiable net assets. |
| (d) | To record the issuance of Reorganized Biovest Common Stock for unsecured debt. |
| (e) | To record the extinguishment of DIP Financing claims. |
| (f) | To record the affirmation of the current obligations due under the Minnesota Promissory Notes. |
| (g) | To record the affirmation of the non-current obligations due under the Minnesota Promissory Notes. |
| (h) | To record the discharge of liabilities subject to compromise pursuant to the Plan and the issuance of Reorganized Biovest Common Stock in satisfaction of such claims. |
| (i) | To record the cancellation of the Predecessor Company's common stock. |
| (j) | To reset Predecessor additional paid-in capital and accumulated deficit to zero and record net fresh-start adjustments. |