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8-K
OREXIGEN THERAPEUTICS, INC. filed this Form 8-K on 04/02/2019
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8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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): March 29, 2019

 

 

OREXIGEN THERAPEUTICS, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

 

Delaware   001-33415   65-1178822

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

3344 N. Torrey Pines Ct., Suite 200, La Jolla, CA   92037
(Address of Principal Executive Offices)   (Zip Code)

Registrant’s telephone number, including area code: (858) 875-8600

(Former Name or Former Address, if Changed Since Last Report.)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 7.01.

Regulation FD Disclosure.

As previously reported, on March 12, 2018, Orexigen Therapeutics, Inc. (the “Company”) filed a voluntary petition for bankruptcy protection under Chapter 11 of Title 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) (Case No. 18-10518).

On March 29, 2019, the Company filed its monthly operating report with the Bankruptcy Court for the reporting period of February 1 to February 28, 2019 (the “Monthly Operating Report”), a copy of which is attached hereto as Exhibit 99.1.

Cautionary Statements Regarding the Monthly Operating Report

The Company cautions investors and potential investors not to place undue reliance upon the information contained in the Monthly Operating Report, which was not prepared for the purpose of providing the basis for an investment decision relating to any of the securities of the Company. The Monthly Operating Report is limited in scope and has been prepared solely for the purpose of complying with requirements of the Bankruptcy Court. The Monthly Operating Report was not reviewed by independent accountants, is in a format prescribed by applicable bankruptcy laws, and is subject to future adjustment. The financial information in the Monthly Operating Report is not prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and, therefore, may exclude items required by GAAP, such as certain reclassifications, eliminations, accruals, valuations and disclosures. The Monthly Operating Report also relates to periods which are different from the historical periods required in the Company’s reports pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

Cautionary Statements Regarding Trading in the Company’s Securities

The Company’s securityholders are cautioned that trading in the Company’s securities during the pendency of the Chapter 11 process will be highly speculative and will pose substantial risks. Trading prices for the Company’s securities may bear little or no relationship to the actual recovery, if any, by holders thereof in the Company’s Chapter 11 process. Accordingly, the Company urges extreme caution with respect to existing and future investments in its securities.

Cautionary Statement Regarding Forward-Looking Statements

This Current Report on Form 8-K and Exhibit 99.1 hereto may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations, estimates, forecasts, and projections as well as the current beliefs and assumptions of the Company’s management. We often use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “may,” “predict,” “will,” “would,” “could,” “should,” “target” and similar expressions to identify forward-looking statements. All statements contained in this Current Report and exhibits hereto that are not statements of historical fact and other estimates, projections, future trends and the outcome of events that have not yet occurred referenced in this Current Report and exhibits hereto should be considered forward-looking statements. Actual results or events could differ materially from those indicated in forward-looking statements as a result of risks and uncertainties, including, among others, the potential adverse impact of the Chapter 11 filings on our liquidity or results of operations, changes in our ability to meet financial obligations during the Chapter 11 process or to maintain contracts that are critical to our operations, the outcome or timing of the Chapter 11 process, the effect of the Chapter 11 filings or related asset sale on our relationships with third parties, regulatory authorities and employees, proceedings that may be brought by third parties in connection with the Chapter 11 process and the timing or amount of any distributions to the Company’s stakeholders. Many of such factors relate to events and circumstances that are beyond the Company’s control. You should not place undue reliance on forward-looking statements. The Company does not assume any obligation to update the information contained in this Current Report or exhibits hereto.

Limitation on Incorporation by Reference

In accordance with General Instruction B.2 of Form 8-K, the information in this Item 7.01 is being furnished for informational purposes only and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing. The filing of this current report (including Exhibit 99.1 attached hereto) will not be deemed an admission as to the materiality of any information required to be disclosed solely by Regulation FD.


Additional Information regarding the Chapter 11 Case

Additional information about the Chapter 11 process and asset sale, as well as other documents related to the restructuring and reorganization proceedings, is available through the Company’s claims agent Kurtzman Carson Consultants LLC at www.kccllc.net/orexigen. Information contained on, or that can be accessed through, such web site or the Bankruptcy Court’s web site is not part of this Current Report.

 

Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits:

 

99.1    Monthly Operating Report, dated March 29, 2019.


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.

 

    OREXIGEN THERAPEUTICS, INC.
Date: April 2, 2019     By:  

/s/ Thomas P. Lynch

    Name:   Thomas P. Lynch
    Title:   Chief Administrative Officer, General Counsel, President, Secretary and Treasurer
EX-99.1

Exhibit 99.1

Case 18-10518-KG     Doc 1006     Filed 03/29/19     Page 1 of 11

UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

 

In re: Orexigen Therapeutics, Inc.

   Case No. 18-10518 (KG)

Debtor

   Reporting Period: February 1, 2019 - February 28, 2019

MONTHLY OPERATING REPORT

File with Court and submit copy to United States Trustee within 20 days after end of month.

Submit copy of report to any official committee appointed in the case.

 

REQUIRED DOCUMENTS        Form No.          Document  
Attached
   Explanation
Attached
   Affidavit/Supplement
Attached
Schedule of Cash Receipts and Disbursements    MOR-1    X          
    Schedule of Disbursements by Debtor Entity    MOR-1a    X          
    Schedule of Debtor Bank Account Balances    MOR-lb    X          
    Schedule of Professional Fees and Expenses Paid    MOR-1c    X          
    Copies of bank statements                   Certification Attached
    Cash disbursements journals                   Certification Attached
    Bank reconciliation                   Certification Attached
Statement of Operations    MOR-2    X          
Balance Sheet    MOR-3    X          
Status of Postpetition Taxes                   Certification Attached
    Copies of IRS Form 6123 or payment receipt                   Certification Attached
    Copies of tax returns filed during reporting period                   Certification Attached
Summary of Unpaid Postpetition Debts                    
    Summary of Unpaid Post Petition Accounts Payables    MOR-4    X          
Accounts Receivable Aging    MOR-5    X          
Debtor Questionnaire    MOR-5    X          

 

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.

 

/s/ Thomas P. Lynch

     

29 MARCH 2019

Signature of Authorized Individual*     Date

Thomas P. Lynch

   

Chief Administrative Officer, & General Counsel

Printed Name of Authorized Individual     Title of Authorized Individual

*Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

Notes:

 

The last four digits of Debtor’s federal tax identification number are (8822). The Debtor’s mailing address for purposes of this chapter 11 case is 9171 Towne Centre Drive, Suite 270, San Diego, CA, 92122.

 


Case 18-10518-KG     Doc 1006     Filed 03/29/19     Page 2 of 11

UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

 

In re: Orexigen Therapeutics, Inc.

   Case No. 18-10518 (KG)

Debtor

   Reporting Period: February 1, 2019 - February 28, 2019

 

CERTIFICATION REGARDING POST-PETITION BANK ACCOUNT

RECONCILIATIONS, CASH DISBURSEMENT JOURNALS AND

COMPLIANCE AND PAYMENT OF POST-PETITION TAXES

I, Thomas Lynch, Chief Administrative Officer & General Counsel, of Orexigen Therapeutics, Inc. (the “Debtor”) hereby certify the following:

1. Attached to MOR-1 is a listing of the Debtor’s bank accounts, by account number, and the opening and closing balances. These accounts are reconciled monthly in accordance with the Debtor’s ordinary course accounting practices and are available to the United States Trustee upon request.

2. Cash disbursement journals are maintained in accordance with the Debtor’s ordinary course accounting practices and are available to the United States Trustee upon request.

3. To the best of my knowledge and belief, the Debtor is current on all post-petition taxes, and no post-petition tax amounts are past due.

 

/s/ Thomas Lynch     29 MARCH 2019
Thomas Lynch    

 

Date

Chief Administrative Officer & General Counsel    


Case 18-10518-KG     Doc 1006     Filed 03/29/19     Page 3 of 11

UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

 

In re: Orexigen Therapeutics, Inc.

   Case No. 18-10518 (KG)

Debtor

   Reporting Period: February 1, 2019 - February 28, 2019

 

Notes to Monthly Operating Report

Debtor in Possession Financial Statements

The financial statements and supplemental information presented in this Monthly Operating Report (“MOR”) have been prepared using the Debtor’s books and records solely to comply with 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 Debtor’s 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 to rounding.

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 Debtor’s chapter 11 case, the payment of certain prepetition indebtedness of the Debtor is subject to compromise or other treatment under a plan of reorganization.

Reorganization Items

ASC 852 requires expenses and income directly associated with the Debtor’s 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 and an estimate of the loss on sale of assets which is pending a valuation.

Litigation

The Debtor 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 attorney’s fees accrued prior to the petition date.

Sale Transaction

On April 23, 2018, the Debtor entered into an asset purchase agreement with Nalpropion Pharmaceuticals, Inc. (the “Buyer”) for the sale of substantially all of its assets through section 363 of the Bankruptcy Code. This transaction was subsequently approved by the Bankruptcy Court on June 28, 2018. On July 27, 2018, the Debtor closed the sale and transferred substantially all of its assets to the Buyer. As part of the sale, the Debtor entered into a transition services agreement for the post-closing period through the effective date of a Plan of Liquidation. On March 6, 2019, the Debtors filed a Plan of Liquidation and the Disclosure Statement was approved on an interim basis on March 27, 2019.


Case 18-10518-KG     Doc 1006    Filed 03/29/19     Page 4 of 11

 

In re: Orexigen Therapeutics, Inc.

   Case No. 18-10518 (KG)

Debtor

   Reporting Period: February 1, 2019 - February 28, 2019

 

MOR - 1

Consolidated Schedule of Cash Receipts and Disbursements (1)

For the Period: February 1, 2019 - February 28, 2019

(Unaudited)

 

$ USD ‘000s    February 1, 2019 - February 28, 2019      Cumulative
Since Filing
 

 

 

 Beginning Cash Balance (Book)

           $ 26,471      $ 21,372   

 Receipts

     

    Operating Receipts

            64,084   

    Miscellaneous Receipts

     73         71,481   

 

    

 

 

 

 Total Receipts

     73         135,565   

 Operating Disbursements

     

    Payroll & Benefits / Contractors

     (57)        (17,100)  

    Inventory

            (4,981)  

    Manufacturing and Logistics

            (205)  

    Gross to Net Disbursements

            (36,451)  

    Marketing / Commercial Operations

            (16,236)  

    Ordinary Course Professionals

     (19)        (1,170)  

    Rent / Facilities / Equipment

            (564)  

    Insurance

     (35)        (492)  

    IT / Utilities

            (376)  

    Regulatory and Compliance

            (675)  

    Other G&A

     (36)        (1,463)  

 

    

 

 

 

 Total Operating Disbursements

     (146)        (79,713)  

 Operating Cash Flow

     (73)        55,852   

 Reorganization Costs

     

    DIP Loan Interest and Fees

            (44,480)  

    US Trustee Fees

            (621)  

    Restructuring Professional Fees

 

    

 

(471)

 

 

 

    

 

(11,388)

 

 

 

 

    

 

 

 

 Total Reorganization Costs

     (471)        (56,489)  

 Total Disbursements

   $ (617)      $  (136,202)  

 

    

 

 

 

    Lender Professional Fees

     (32)        (2,439)  

 Net Cash Flow

   $ (575)      $ (3,076)  

 DIP Draw - Cash

            7,600   

 

    

 

 

 

 Ending Cash Balance (Book)

   $ 25,896       $ 25,896   
 Notes:      

 

    

(1) The Schedule of Cash Receipts and Disbursements is presented on a book basis.


Case 18-10518-KG     Doc 1006    Filed 03/29/19     Page 5 of 11

 

In re: Orexigen Therapeutics, Inc.

   Case No. 18-10518 (KG)

Debtor

   Reporting Period: February 1, 2019 - February 28, 2019

 

MOR - 1a

Schedule of Disbursements by Debtor Entity (1)

For the Period: February 1, 2019 - February 28, 2019

(Unaudited)

 

 $ USD ‘000s

 Debtor

   February 1, 2019 - February 28, 2019      Cumulative 
Since Filing 

 

 

 Orexigen Therapeutics, Inc.

            $                                 648        $         138,641  
    

 

 

 

  

 

 

 

 Total

       $ 648        $ 138,641  

 

    

 

  

 

 Notes:

 

 (1) The Schedule of Disbursements is presented on a book basis.


Case 18-10518-KG     Doc 1006    Filed 03/29/19     Page 6 of 11

 

In re: Orexigen Therapeutics, Inc.

   Case No. 18-10518 (KG)

Debtor

   Reporting Period: February 1, 2019 - February 28, 2019

 

MOR - 1b

Schedule of Debtor Bank Account Balances (1)

For the Period: February 1, 2019 - February 28, 2019

(Unaudited)

 

$ USD ‘000s
Debtor
   Bank    Last Four Digits
Account No.
    Account Description       Beginning
Balance
2/1/2019
    Ending
Balance
    2/28/2019
 

 

 

 Orexigen Therapeutics, Inc.

  

Silicon Valley Bank

     6813    

General checking

    $       $  

 Orexigen Therapeutics, Inc.

  

Silicon Valley Bank

     1180    

Zero-balance lockbox

           

 Orexigen Therapeutics, Inc.

  

Silicon Valley Bank

     3036    

Sweep account

    26,624       25,924  

 Orexigen Therapeutics, Inc.

  

Silicon Valley Bank

     7307    

Utility adequate assurance

           

 Orexigen Therapeutics, Inc.

  

Silicon Valley Bank

     5177    

Collateral

    100       100  
         

 

 

 

 Total Bank Account Balances

            $  26,724       $  26,024  
         

 

 

 

Notes:

 

(1) The Consolidated Schedule of Cash Receipts and Disbursements (MOR-1) and Schedule of Disbursements by Debtor Entity (MOR-la) represent book balances while MOR-lb represents bank balances. The balances differ primarily due to the bank’s delayed recording of intrabank activity between the general checking and sweep accounts.


Case 18-10518-KG     Doc 1006     Filed 03/29/19     Page 7 of 11

 

In re: Orexigen Therapeutics, Inc.

   Case No. 18-10518 (KG)

Debtor

   Reporting Period: February 1, 2019 - February 28, 2019

 

MOR-1c

Schedule of Professional Fees and Expenses Paid

For the Period: February 1, 2019 - February 28, 2019

(Unaudited)

 

                                Month Ended 2/18/19                      Cumulative Since Filing      

Payee

  Category   Payor   Date   Period Covered   Fees     Expenses     Fees     Expenses  

 

 

Retained Professionals

               

Hogan Lovells US LLP

 

Debtor Counsel

 

Orexigen Therapeutics, Inc.            

  2/11/2019 3/12/2018 - 12/31/2018   $ 89,923     $ 437     $ 2,492,836     $ 33,877  

Morris, Nichols, Arsht & Tunnell LLP

 

Debtor Local Counsel

 

Orexigen Therapeutics, Inc.

  2/11/2019 3/12/2018  - 12/31/2018     32,602       203       807,272       22,295  

Ernst & Young, LLP

 

Debtor Financial Advisor

 

Orexigen Therapeutics, Inc.

  2/11/2019 3/12/2018  - 11/30/2018     49,605       -       2,151,260       202,314  

Perella Weinberg Partners

 

Debtor Investment Banker

 

Orexigen Therapeutics, Inc.

  3/12/2018  - 7/27/2018         3,411,713       3,600  

Irell & Manella LLP

 

Committee Counsel

 

Orexigen Therapeutics, Inc.

  2/11/2019 3/12/2018 - 11/30/2018     179,143       -       895,713       14,874  

Berkeley Research Group LLC

 

Committee Financial Advisor

 

Orexigen Therapeutics, Inc.

  2/11/2019 3/27/2018 - 11/30/2018     60,090       -       308,627       2,869  

Elliott Greenleaf, P.C.

 

Committee Local Counsel

 

Orexigen Therapeutics, Inc.

  2/11/2019 3/27/2018 - 11/30/2018     25,862       -       129,311       598  

Kurtzman Carson Consultants LLC

 

Claims Agent

 

Orexigen Therapeutics, Inc.

  2/11/2019 3/12/2018 - 12/31/2018     19,392       2,241       472,673       170,161  

Landis Rath & Cobb LLP

 

Debtor Conflict Counsel

 

Orexigen Therapeutics, Inc.

  2/11/2019 6/14/2018  - 11/30/2018     11,768       -       193,955       2,191  

Other Restructuring Professionals

               

Wilmington Trust, National Association

 

DIP Administrative Agent

 

Orexigen Therapeutics, Inc.

  3/12/2018 - 7/31/2018       $ 51,600     $ -  

Arnold & Porter Kaye Scholer LLP

 

DIP Administrative Agent Counsel

 

Orexigen Therapeutics, Inc.

  3/12/2018 - 7/27/2018         131,889       1,034  

Quinn Emanuel Urquhart & Sullivan, LLP    

 

DIP Lenders Counsel

 

Orexigen Therapeutics, Inc.

  3/12/2018 - 10/31/2018         1,023,973       19,636  

Brown Rudnick LLP

 

DIP Lender Counsel

 

Orexigen Therapeutics, Inc.

  2/15/2018  - 5/31/2018         147,048       1,497  

Whiteford Taylor Preston

 

DIP Lenders Local Counsel

 

Orexigen Therapeutics, Inc.

  1/24/2019 3/12/2018  - 12/31/2018         237,215       2,141  

U.S. Bank, N.A.

 

Indenture Trustee

 

Orexigen Therapeutics, Inc.

  2/25/2019 3/1/2018 - 1/31/2019     31,954       -       852,559       3,040  

Duane Morris

 

DTP Administrative Agent Secondary Counsel    

 

Orexigen Therapeutics, Inc.

  4/10/2018 - 7/27/2018         17,609       -  

 

 

Total

          $  500,338     $ 2,881     $ 13,325,253     $ 480,128  


Case 18-10518-KG     Doc 1006     Filed 03/29/19     Page 8 of 11

 

In re: Orexigen Therapeutics, Inc.

   Case No. 18-10518 (KG)

Debtor

   Reporting Period: February 1, 2019 - February 28, 2019

 

MOR-2

Statement of Operations

For the Period: February 1, 2019 - February 28, 2019

(Unaudited)

 

$ USD ‘000s    February 1, 2019 - February 28, 2019          March 12 - February 28, 2019      

 

 

Net product sales(1)

     $ -        $ 28,050    

Cost of product sales(1)

     -          (6,367)   

Operating expenses:

     

    Research and development(1)

     -          (2,804)   

    Selling, general and administrative(1)

     (1,446)        (34,835)   

    Amortization expense of intangible assets

     -          (2,987)   
  

 

 

 

Total operating expenses

     (1,446)        (40,626)   
  

 

 

 

Loss from operations

     (1,446)        (18,944)   

Other income/(expense):

     

    Interest income

     50         1,021    

    Refundable tax credit(2)

     -          -     

    Interest expense(1)

     -          (63)   
  

 

 

 

Total other income (expenses)

     50         958    
  

 

 

 

Net loss

     (1,396)        (17,986)   

Reorganization expenses(3)

     (2,251)        (318,175)   
  

 

 

 

Net gain/(loss)

     $ (3,647)      $ (336,161)   
  

 

 

 

Notes:

 

(1) On July 27, 2018 the Debtor closed the sale and transferred substantially all of its assets to the Buyer. Activity in these accounts was the result of prior period accruals being trued up.

(2) Refundable tax credit includes refundable alternative minimum tax as created by the Tax Cuts and Jobs Act. As the result of an audit, the income has been reclassed to 2017.

(3) Reorganization expenses include the loss on sale of assets as well as the write up of the notes to the principle balance, the elimination of the debt discount and debt costs related to the 2013 debt. The loss on sale of assets is not final and pending the completion of a valuation of the non-debtor subsidiaries.


Case 18-10518-KG     Doc 1006     Filed 03/29/19     Page 9 of 11

 

In re: Orexigen Therapeutics, Inc.

   Case No. 18-10518 (KG)

Debtor

   Reporting Period: February 1, 2019 - February 28, 2019

 

MOR -3

Balance Sheet

(Unaudited)

 

     Orexigen Therapeutics, Inc.      
$ USD ‘000s    As of March 11, 2018      As of February 28, 2019      

 

Assets

       

    Current assets:

       

      Cash and cash equivalents

     $ 21,372          $ 25,896      

      Accounts receivable, net

     19,203          -      

      Inventory

     8,857          -      

      Prepaid expenses and other current assets

     6,868          6,585      

      Intercompany receivable(1)

     93,353          -      
  

 

 

    

 

 

   

    Total current assets

     149,653          32,481      

    Non-current assets:

              

      Property and equipment, net

     543          -      

      Investment in Subsidiary(1)

     19,000          -      

      Intangible assets

     66,566          -      

      Other long-term assets

     588          1,252      

      Restricted cash

     100          100      
  

 

 

    

 

 

   

Total assets

     $ 236,450          $ 33,833      
  

 

 

    

 

 

   

Liabilities and Stockholders’ Equity

       

    Current liabilities:

       

      Accounts payable(2)

     925          97      

      DIP loan

     -          -      

      Accrued expenses

     3,921          5,044      
  

 

 

    

 

 

   

    Total current liabilities:

     4,846          5,141      
  

 

 

    

 

 

   

    Total liabilities not subject to compromise

     4,846          5,141      

    Total liabilities subject to compromise

     110,381          244,658      

    Series Z preferred stock

     3,343          -      

Stockholders’ equity (deficit)

     117,880          (215,966)     
  

 

 

    

 

 

   

Total liabilities and stockholders’ equity (deficit)

     $ 236,450          $ 33,833      
  

 

 

    

 

 

   

Notes:

 

(1) Investment in Subsidiary $19m reclassed frorn Intercompany Receivable at March 11, 2018 to properly align for reporting.

(2) Accounts payable excludes all liabilities assumed by the purchaser under the terms of the Asset Purchase Agreement.


Case 18-10518-KG     Doc 1006     Filed 03/29/19     Page 10 of 11

 

In re: Orexigen Therapeutics, Inc.

   Case No. 18-10518 (KG)

Debtor

   Reporting Period: February 1, 2019 - February 28, 019

 

MOR-4

Summary of Unpaid Post Petition Accounts Payables

As of February 28, 2019

(Unaudited)

 

$ USD ‘000s

                 

 

 
     Number of Days Past Due  
Post Petition Accounts Payable Aging    Current      0-30      31-60    61-90    Over 90      Total  

Post-Petition Accounts Payable(1)

     $                 97      $                     -      $                    -    $                    -    $                     -      $                     97    
  

 

 

 
     $                     97      $                     -      $                    -    $                    -    $                     -      $                 97    

Notes:

 

(1) The above figures represent post petition trade payables recorded in the Debtors’ subledger.


Case 18-10518-KG     Doc 1006     Filed 03/29/19     Page 11 of 11

 

In re: Orexigen Therapeutics, Inc.

   Case No. 18-10518 (KG)

Debtor

   Reporting Period: February 1, 2019 - February 28, 2019

 

MOR-5

Accounts Receivable Aging

As of February 28, 2019

(Unaudited)

 

$ USD ‘000s

                 
        
Accounts Receivable Aging    Current      0-3 Days      31-60 Days      61-90 Days      91 Days+      Total  

Accounts Receivable, net

     $                     -      $                     -      $                     -      $                     -      $                     -      $                     -   
  

 

 

 
     $                     -      $                     -      $                     -      $                     -      $                     -      $                     -   

Debtor Questionnaire

 

Must be completed each month          Yes                  No        
1.   Have any assets been sold or transferred outside the normal course of business
this reporting period? If yes, provide an explanation below.
        X
2.   Have any funds been disbursed from any account other than a debtor in possession
account this reporting period? If yes, provide an explanation below.
        X
3.   Have all post petition tax returns been timely filed? If no, provide an explanation
below.
   X     
4.   Are workers compensation, general liability and other necessary insurance
coverages in effect? If no, provide an explanation below.
   X     
5.   Has any bank account been opened during the reporting period? If yes, provide
documentation identifying the opened account(s). If an investment account has been
opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.
        X