Case 18-10518-KG Doc 446 Filed
UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
|In re: Orexigen Therapeutics, Inc.
||Case No. 18-10518 (KG)|
||Reporting Period: May 1, 2018 - May 31, 2018|
Notes to Monthly Operating Report
Debtor in Possession Financial Statements
financial statements and supplemental information presented in this Monthly Operating Report (MOR) have been prepared using the Debtors books and records solely to comply with the requirements of the monthly reporting requirements
under the United States Bankruptcy Code and those of the United States Trustee for Region Three.
The financial statements and supplemental information
presented herein are unaudited, preliminary in nature, and may not comply with generally accepted accounting principles in the United States of America (U.S. GAAP) in all material respects. These preliminary unaudited financial
statements and other information represent the Debtors good faith attempt to comply with the requirements of the United States Bankruptcy Code and those of the United States Trustee using the resources available. This information is limited in
scope to the requirements of this report.
These preliminary unaudited financial statements have not been subject to procedures that would typically be
applied to financial information presented in accordance with U.S. GAAP, and upon application of such procedures, the Debtor believes that the financial information could be subject to changes, which could be material. Certain totals may not sum due
All related tax implications are not currently reflected in the preliminary unaudited financial statements herein. The financial impact of
potential tax and other adjustments on the accompanying preliminary unaudited financial statements cannot be determined at this time.
There may be
adjustments to the opening balance sheet as of March 12, 2018 that will impact these accompanying preliminary unaudited financial statements. ASC 805 permits a one-year measurement period in which the
opening balance sheet can be adjusted if additional information becomes available.
Liabilities Subject to Compromise
As a result of the commencement of the Debtors chapter 11 case, the payment of certain prepetition indebtedness of the Debtor is subject to compromise or
other treatment under a plan of reorganization.
ASC 852 requires expenses and income directly associated with the Debtors chapter 11 cases to be reported separately in the income statement as
reorganization items. Reorganization items include expenses related to legal advisory and representation services, and other professional consulting and advisory services. Reorganization costs also include adjustment to record debt at the estimated
amount of the claim.
is subject to lawsuits and claims that arise out of its operations in the normal course of business. Prior to the petition date, the Debtor was the defendant to various legal proceedings, described in detail in the most recent publicly filed
financial statements, which are stayed during the course of the chapter 11 bankruptcy proceedings.
There are uncertainties inherent in any litigation and
appeal and the Debtor cannot predict the outcome. At this time the Debtor is unable to estimate possible losses or ranges of losses that may result from such legal proceedings described in detail in the most recent publicly filed financial
statements, and it has not accrued any amounts in connection with such legal proceedings in the financial statements herein, other than attorneys fees accrued prior to the petition date.