EX-99.1 2 v447600_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

OFFICE OF THE UNITED STATES TRUSTEE - REGION 3

POST-CONFIRMATION QUARTERLY SUMMARY REPORT

 

This Report is to be submitted for all bank accounts that are presently maintained by the post confirmation debtor.

 

Debtor's Name: Nuo Therapeutics, Inc.   Bank: Capital One
         
Bankruptcy Number: 16-10192 (MFW)   Account Number: all accounts
         
Date of Confirmation: May 5, 2016 (Effective Date)   Account Type: checking (operating) and money market
         
Reporting Period (month/year):  May 5 - June 30, 2016      

 

Beginning Cash Balance:  $2,853,930 

 

All receipts received by the debtor:      

 

Cash Sales:  $19,320 
      
Collection of Accounts Receivable:  $422,310 
      
Proceeds from Litigation (settlement or otherwise):  $0 
      
Sale of Debtor's Assets:  $0 
      
Capital Infusion pursuant to the Plan:  $7,152,500 
      
Total of cash received:  $7,594,130 
      
Total of cash available:  $10,448,060 

 

Less all disbursements or payments (including payments made under the confirmed plan) made by the Debtor:

 

Disbursements made under the plan, excluding the administrative claims of bankruptcy professionals:  $1,925,894 
      
Disbursements made pursuant to the administrative claims of bankruptcy professionals:  $1,430,726 
      
All other disbursements made in the ordinary course:  $1,282,505 
      
Total Disbursements  $4,639,126 
      
Ending Cash Balance  $5,808,934 

 

Pursuant to 28 U.S.C. Section 1746(2), I hereby declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge and belief.

 

08-22-2016   /s/ David E. Jorden  
Date   David E. Jorden - CEO/CFO  

 

Debtor: Nuo Therapeutics, Inc.  
Case Number: 16-10192  

 

 

 

 

   Month 
ASSETS  June 2016 
Cash (Unrestricted)   5,808,934 
Cash (Restricted)   53,463 
Accounts Receivable (Net)   1,048,089 
Inventory   167,211 
Other Receivables   759,399 
Prepaid Expenses   531,530 
Other (Attach List) - Deposits   458,374 
Total Current Assets   8,827,000 
Property, Plant & Equipment   2,201,845 
Real Property & Improvements     
Machinery & Equipment     
Furniture, fixtures & Office Equipment     
Vehicles     
Leasehold Improvements     
Less: Accumulated Depreciation/Depletion   (1,374,799)
Total Property, Plant & Equipment   854,046 
Due from Affiliates & Insiders   0 
Other (Attach List) – long term deposits   16,810 
Total Assets   9,697,856 
Liabilities Not Subject to Compromise (Post-petition Liabilities)     
Accounts Payable   855,687 
Taxes Payable   11,816 
Accrued Liabilities   868,850 
Professional Fees (remaining administrative expenses for Case)   619,111 
Secured Debt   0 
Due to Affiliates & Insiders (board of directors fees)   37,500 
Other (Attach List)   0 
Total Post-petition Liabilities   2,392,964 
Liabilities Subject to Compromise (Pre-petition Liabilities)     
Secured Debt - Per Plan   0 
Priority Debt - Per Plan   5,243 
Unsecured Debt - Per Plan   174,355 
Other (Attach List) - Per Plan   599,766 
Total Pre-petition Liabilities   779,364 
Total Liabilities   3,172,328 
Equity     
Common Stock   7,315,000 
Retained Earnings (Deficit)   (789,472)
Total Equity (Deficit)   6,525,528 
Total Liabilities & Owners' Equity   9,697,856 

 

** See Explanatory Note on page 3.

 

 

 

 

Notes to Nuo Therapeutics, Inc. Quarterly Operating Report

 

The attached balance sheet is not prepared in accordance with generally accepted accounting principles (GAAP). More specifically, following the consummation of the Modified First Amended Plan of Reorganization, the Reorganized Debtor’s financial condition and results of operations from and after May 5, 2016 are intended to reflect the application of fresh-start accounting. Fresh-start accounting requires us to adjust our assets and liabilities contained in our financial statements, immediately before emergence from bankruptcy protection to their estimated fair values using the acquisition method of accounting. We expect that those adjustments will be material and will affect the Company’s results of operations from and after May 5, 2016.

 

These financial statements do not reflect such intended application of fresh-start accounting which will largely impact long-lived assets, primarily intangibles. Under fresh start accounting, the beginning equity value for the entity as of the Effective Date (May 5, 2016) is the reorganization value determined via the bankruptcy case itself (not the case here) or a prospective market based valuation for the business. Retained earnings on the Effective Date is set at zero.

 

The attached 6/30/16 balance sheet reflects the issuance of cumulative 9,927,112 shares of New Common Stock of the Reorganized Debtor that was issued 1) to investors in the recapitalization of the Reorganized Debtor as of the Effective Date in the amount of 7,500,000 shares, 2) to common shareholders who owned Old Common Stock as of the March 28, 2016 Record Date and properly returned Release Documents pursuant to the Plan in the amount of 2,264,112 shares, and 3) 162,500 shares to counsel to the Ad Hoc Equity Committee (100,000 shares) and various members of the Ad Hoc Equity Committee who loaned funds to the Committee in December 2015 (62,500 shares). All of these issuances were made pursuant to the Plan and/or Court order.

 

The Reorganized Debtor is working diligently with its advisors and other professionals to bring itself current with periodic filings required under the 1934 SEC Exchange Act. More specifically, this includes, the Form 10K as of December 31, 2015 and Form 10Q’s for the periods ended March 31 and June 30, 2016. Therefore, the attached June 30, 1016 balance sheet may differ materially from the June 30, 2016 statement of financial condition in the Form 10Q for the period ending 6/30/2016 which will be filed subsequent to this submission.

 

 

The Reorganized Debtor’s Quarterly Operating Report for the quarter ended September 30, 2016 is reasonably expected to include the implementation of fresh-start accounting described above.