Nuvectra Corp (Form: 8-K, Received: 12/31/2019 16:03:51)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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): December 20, 2019

Nuvectra Corporation

(Exact Name of Registrant as Specified in its Charter)

Delaware

001-37525

30-0513847

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification Number)

5830 Granite Parkway, Suite 1100,

Plano, Texas 75024

(Address of principal executive offices, including zip code)

(214) 474-3107

(Registrant’s telephone number, including area code)

(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 obligations of the registrant under any of the following provisions:

☐	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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.001	NVTRQ	OTC Markets

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.

Monthly Operating Report

As previously disclosed, on November 12, 2019, Nuvectra Corporation (the “Company”) filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code (the “Chapter 11 Case”) in the U.S. Bankruptcy Court for the Eastern District of Texas (the “Bankruptcy Court”). The Chapter 11 Case is being administered under the caption In re Nuvectra Corporation, Case No. 19-43090.

On December 20, 2019, the Company filed with the Bankruptcy Court a monthly operating report for the period of November 13, 2019 through November 30, 2019 (the “Monthly Operating Report”). The Monthly Operating Report is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference into this Item 7.01.

The information in this Current Report on Form 8-K, including Exhibit 99.1 hereto, is being furnished under Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any of the Company’s filings under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof and regardless of any general incorporation language in such filings, except to the extent expressly set forth by specific reference in such a filing. The filing of this Current Report on Form 8-K shall not be deemed an admission as to the materiality of any information herein that is required to be disclosed solely by reason of Regulation FD.

Cautionary Note Regarding the Monthly Operating Report

Investors and potential investors should not place undue reliance on 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 securities of the Company. The Monthly Operating Report is limited in scope, covers a limited time period, and has been prepared solely for the purpose of complying with the requirements of the Bankruptcy Court. The Monthly Operating Report was not audited or reviewed by independent accountants, is in a format prescribed by applicable bankruptcy laws, and is subject to future adjustment and reconciliation. The financial information in the Monthly Operating Report was 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, non-cash items, accruals, valuations and disclosures. The Monthly Operating Report also contains information for a period which is different from the historical periods required in the Company’s reports under the Exchange Act, and such information might not be indicative of the Company’s financial condition or operating results that would be reflected in the Company’s financial statements or its reports under the Exchange Act. There can be no assurance that, from the perspective of an investor or potential investor in the Company’s securities, the Monthly Operating Report is complete. Results and information set forth in the Monthly Operating Report should not be viewed as indicative of future results.

Additional Information Regarding the Chapter 11 Case

The Monthly Operating Report and other filings with the Bankruptcy Court related to the Chapter 11 Case are available electronically at http://www.kccllc.net/nuvectra. Information contained on, or that can be accessed through, such website or the Bankruptcy Court is not part of this Current Report on Form 8-K, and the Company disclaims liability for any such information.

Item 8.01 Other Events.

Full-Body MR-Conditional Approval for Algovita®

On December 31, 2019, the U.S. Food and Drug Administration (the “FDA”) granted full-body magnetic resonance (MR)-conditional approval for the Company’s Algovita® spinal cord stimulation product. The approval was granted following the FDA’s 180-day review process with respect to the Company’s previously announced regulatory submission in June 2019.

Item 9.01 Financial Statements and Exhibits.

(d)

Exhibits

99.1	Monthly Operating Report for the period of November 13, 2019 through November 30, 2019, filed with the United States Bankruptcy Court for the Eastern District of Texas

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.

	NUVECTRA CORPORATION

Date: December 31, 2019	/s/ Jennifer J. Kosharek
	Jennifer J. Kosharek
	Chief Financial Officer

Exhibit 99.1

					Monthly Operating Report
					ACCRUAL BASIS
CASE NAME:		Nuvectra Corporation

CASE NUMBER:		19-43090

JUDGE:		Honorable Brenda T. Rhoades


			UNITED STATES BANKRUPTCY COURT

			EASTERN DISTRICT OF TEXAS

			REGION 6

			MONTHLY OPERATING REPORT

	MONTH ENDING:		November 30	2019
			MONTH	YEAR


IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER
PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT
(ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING ATTACHMENTS AND,
TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT, AND COMPLETE.
DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY) IS BASED ON ALL
INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.


RESPONSIBLE PARTY:

/s/ Jennifer J. Kosharek				Chief Financial Officer
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY				TITLE

Jennifer J. Kosharek				12/20/2019
PRINTED NAME OF RESPONSIBLE PARTY				DATE



PREPARER:

/s/ Jennifer J. Kosharek				Chief Financial Officer
ORIGINAL SIGNATURE OF PREPARER				TITLE

Jennifer J. Kosharek				12/20/2019
PRINTED NAME OF PREPARER				DATE

Monthly Operating Report

ACCRUAL BASIS-1

CASE NAME:		Nuvectra Corporation

CASE NUMBER:		19-43090


COMPARATIVE BALANCE SHEET
			SCHEDULE AMOUNT as of Nov. 12			NOVEMBER 30			MONTH		MONTH
ASSETS
1.	UNRESTRICTED CASH		$	9,769,668		$	9,565,361
2.	RESTRICTED CASH		$	-		$	-		$	-	$	-
3.	TOTAL CASH		$	9,769,668		$	9,565,361		$	-	$	-
4.	ACCOUNTS RECEIVABLE (NET)		$	5,616,444		$	4,270,444
5.	INVENTORY		$	13,714,792		$	13,503,589
6.	NOTES RECEIVABLE		$	-		$	-		$	-	$	-
7.	PREPAID EXPENSES		$	2,075,993		$	1,971,200
8.	OTHER (ATTACH LIST)		$	-		$	-		$	-	$	-
9.	TOTAL CURRENT ASSETS		$	31,176,897		$	29,310,594		$	-	$	-
10.	PROPERTY, PLANT & EQUIPMENT		$	5,149,385		$	11,909,274
11.	LESS: ACCUMULATED DEPRECIATION/DEPLETION					$	(6,815,209	)
12.	NET PROPERTY, PLANT & EQUIPMENT		$	5,149,385		$	5,094,064		$	-	$	-
13.	DUE FROM INSIDERS		$	-		$	-		$	-	$	-
14.	OTHER ASSETS - NET OF AMORTIZATION (ATTACH LIST)		$	-		$	-		$	-	$	-
15.	OTHER (ATTACH LIST)		$	1,457,176		$	1,438,411
16.	TOTAL ASSETS		$	37,783,458		$	35,843,070		$	-	$	-
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE					$	68,036
18.	TAXES PAYABLE					$	7,131
19.	NOTES PAYABLE					$	-
20.	PROFESSIONAL FEES					$	369,096
21.	SECURED DEBT					$	-		$	-	$	-
22.	OTHER (ATTACH LIST)					$	559,952
23.	TOTAL POSTPETITION LIABILITIES					$	1,004,215		$	-	$	-
PREPETITION LIABILITIES
24.	SECURED DEBT		$	10,118,505		$	10,168,789
25.	PRIORITY DEBT		$	1,751,288		$	900,091
26.	UNSECURED DEBT		$	9,286,640		$	9,324,051
27.	OTHER (ATTACH LIST)		$	-		$	-
28.	TOTAL PREPETITION LIABILITIES		$	21,156,433		$	20,392,931		$	-	$	-
29.	TOTAL LIABILITIES		$	21,156,433		$	21,397,146		$	-	$	-
EQUITY
30.	PREPETITION OWNERS' EQUITY		$	96,444,483		$	16,627,024		$	14,445,924	$	14,445,924
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)		$	(79,817,458	)	$	(2,181,101	)	$	-	$	-
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)		$	-		$	-		$	-	$	-
33.	TOTAL EQUITY		$	16,627,024		$	14,445,924		$	14,445,924	$	14,445,924
34.	TOTAL LIABILITIES & OWNERS' EQUITY		$	37,783,458		$	35,843,070		$	14,445,924	$	14,445,924

Page 1a - Other LT Asset Detail

GL Account Name	GL Acct #		Description	Notes	Nov. 12, 2019			Nov. 30, 2019
ROU Operating Leases - Noncurrent		16010	ASC 842 Right of Use Operating Leases Asset	Account reconciliation available upon request	$	1,418,198		$	1,418,198
ROU Operating Leases - Noncurrent		16010	ASC 842 Right of Use Operating Leases Asset	Account reconciliation available upon request	$	415,559		$	415,559
Operating Leases Noncurrent Amortizati		16011	ASC 842 Right of Use Operating Leases Asset Amortization	Account reconciliation available upon request	$	(303,977	)	$	(318,968	)
Operating Leases Noncurrent Amortizati		16011	ASC 842 Right of Use Operating Leases Asset Amortization	Account reconciliation available upon request	$	(72,604	)	$	(76,377	)
					$	1,457,176		$	1,438,411

Page 1b - Other Post-Pettn Liab

		(CR) / DR			(CR) / DR					(CR) / DR			(CR) / DR
		Balance			Balance					POST - Petition Portion Only			Pre-Petition Still Existing at
GL Account Name	Notes	Nov. 12, 2019			Nov. 30, 2019			GL Acct #		Nov. 30, 2019			Nov. 30, 2019
Manual AP Accrual	Post petition amount per GL reconciliation. Services incurred not yet invoiced.		(583,870	)		(1,180,121	)		20106		(596,251	)
Received, Not Invoiced			(228,712	)		(228,712	)		20110
Accrued Warranty	No update to accrual post petition. No new trials/perms.		(282,084	)		(282,084	)		20250
Other Accrued Expenses			1,651			5,949			20251
Deferred Lease Payments	GAAP Straight Line Rent Expense Calculation. Difference in actual rent pymt and straight line amortization (also see ROU accts)		(16,281	)		(16,468	)		20602		(187	)
Operating Lease Liability- Noncurrent	ASC 842 Right of Use Operating Leases Liability. Note this liability was booked when 842 implemented (along with the asset) and is decreased every month (along with the asset which gets amortized) as we progress through the leases		(1,833,972	)		(1,810,178	)		20610
TOTAL OTHER LIABILITIES			(2,943,269	)		(3,511,614	)


Accrued Salaries & Wages	Accrual all post petition (1 week of salary and 2 weeks of hourly unpaid at 11/30). Last pay day in month was Nov. 22.		(116,947	)		(284,422	)		20210		(284,422	)		-
Accrued PTO	Immaterial accrual 11/13-11/30		(731,384	)		(720,525	)		20211					(720,525	)
Accrued Commissions	All paid on 11/22		(657,527	)		-			20215					-
Accrued Medical	All paid / remitted		-			-			20225					-
Accrued H.S.A & Flex Benefits	All paid / remitted		(5,420	)		(0	)		20230					-
Accrued FSA	Unable to separate pre/post		(19,282	)		(17,465	)		20231					(17,465	)
Accrued Vision	All paid / remitted		-			-			20232					-
Accrued 401K	All paid / remitted		(36,184	)		(112	)		20235					-
Accrued Other Payroll	Post-petition amount per GL reconciliation for expense reports not yet paid. Pre-petition amount per GL reconciliation for claims over cap.		(150,676	)		(227,172	)		20240		(48,188	)		(178,984	)
Accrued Payroll Taxes	Accrual all post petition (1 week of salary and 2 weeks of hourly unpaid at 11/30). Last pay day in month was Nov. 22.		(8,884	)		(21,758	)		20245					-
Accrued Sales Tax	The debit balance at 11/30/19 is primarily caused by a $29K refund due from the state of Ohio for corrections made in Sept. between customer billings and our remittance to the state. We have requested a refund check but it will take ~ 6 months due to backlog. This account is fully related to pre-petition as we have no post-petition trials/perms generating sales tax (revisions are immaterial).		(1,173	)		16,882			20255		-			16,882
Accrued Use Tax			(8,715	)		(8,715	)		20260					-
Accrued State Taxes			(15,095	)		(15,095	)		20405					-
TOTAL PRIORITY LIABILITIES			(1,751,288	)		(1,278,382	)							(900,091	)



TOTAL TRADE A/P			(6,343,371	)		(6,438,361	)


TOTAL THIS TAB			(11,037,928	)		(11,228,358	)
TOTAL PER PAGE 1 TAB (Liabilities w/o Secured Debt)			(11,037,928	)		(11,228,358	)


											(929,048	)
	Professional Fees Separately Disclosed										(369,096	)
Total Post Petition Liabilities (Other)											(559,952	)

Monthly Operating Report

ACCRUAL BASIS-2

CASE NAME:		Nuvectra Corporation

CASE NUMBER:		19-43090

INCOME STATEMENT			NOVEMBER 13-30			MONTH		MONTH		MONTH
REVENUES
1.	GROSS REVENUES		$	191,673
2.	LESS: RETURNS & DISCOUNTS		$	188,618
3.	NET REVENUE		$	3,055		$	-	$	-	$	-
COST OF GOODS SOLD
4.	MATERIAL		$	211,203
5.	DIRECT LABOR		$	-		$	-	$	-	$	-
6.	DIRECT OVERHEAD		$	-		$	-	$	-	$	-
7.	TOTAL COST OF GOODS SOLD		$	211,203		$	-	$	-	$	-
8.	GROSS PROFIT (LOSS)		$	(208,148	)	$	-	$	-	$	-
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION		$	89,159
10.	SELLING & MARKETING		$	293,728
11.	GENERAL & ADMINISTRATIVE		$	1,051,830
12.	RENT & LEASE		$	43,580
13.	OTHER (ATTACH LIST)		$	-		$	-	$	-	$	-
14.	TOTAL OPERATING EXPENSES		$	1,478,297		$	-	$	-	$	-
15.	INCOME (LOSS) BEFORE NON-OPERATING INCOME & EXPENSE		$	(1,686,444	)	$	-	$	-	$	-
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATTACH LIST)		$	(2,258	)
17.	NON-OPERATING EXPENSE (ATTACH LIST)		$	-		$	-	$	-	$	-
18.	INTEREST EXPENSE		$	72,498
19.	DEPRECIATION / DEPLETION		$	55,320
20.	AMORTIZATION		$	-		$	-	$	-	$	-
21.	OTHER (ATTACH LIST)		$	-		$	-	$	-	$	-
22.	NET OTHER (INCOME) & EXPENSES		$	125,560		$	-	$	-	$	-
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES		$	369,096
24.	U.S. TRUSTEE FEES		$	-
25.	OTHER (ATTACH LIST)		$	-
26.	TOTAL REORGANIZATION EXPENSES		$	369,096		$	-	$	-	$	-
27.	INCOME TAX		$	-
28.	NET PROFIT (LOSS)		$	(2,181,101	)	$	-	$	-	$	-

Page 2a - Other Non-Op Inc Detl

GL Account Name		GL Acct #				Nov. 13-30, 2019			Description
Other Income/Expense			80120			$	(2,258	)	SVB bank account revenue share

Monthly Operating Report

ACCRUAL BASIS-3

CASE NAME:		Nuvectra Corporation

CASE NUMBER:		19-43090


CASH RECEIPTS AND DISBURSEMENTS			NOVEMBER 13-30			MONTH		MONTH		QUARTER
1.	CASH - BEGINNING OF MONTH		$	9,769,668		$	9,565,361	$	9,565,361
RECEIPTS FROM OPERATIONS
2.	CASH SALES		$	-						$	-
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION		$	1,351,696						$	1,351,696
4.	POSTPETITION		$	-						$	-
5.	TOTAL OPERATING RECEIPTS		$	1,351,696		$	-	$	-	$	1,351,696
NON-OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)		$	-						$	-
7.	SALE OF ASSETS		$	-						$	-
8.	OTHER (ATTACH LIST)		$	22,334						$	22,334
9.	TOTAL NON-OPERATING RECEIPTS		$	22,334		$	-	$	-	$	22,334
10.	TOTAL RECEIPTS		$	1,374,030		$	-	$	-	$	1,374,030
11.	TOTAL CASH AVAILABLE		$	11,143,698		$	9,565,361	$	9,565,361
OPERATING DISBURSEMENTS
12.	NET PAYROLL		$	1,086,763						$	1,086,763
13.	PAYROLL TAXES PAID		$	40,237						$	40,237
14.	SALES, USE & OTHER TAXES PAID		$	18,537						$	18,537
15.	SECURED / RENTAL / LEASES		$	-						$	-
16.	UTILITIES		$	-						$	-
17.	INSURANCE		$	207,471						$	207,471
18.	INVENTORY PURCHASES		$	-						$	-
19.	VEHICLE EXPENSES		$	-						$	-
20.	TRAVEL		$	-						$	-
21.	ENTERTAINMENT		$	-						$	-
22.	REPAIRS & MAINTENANCE		$	-						$	-
23.	SUPPLIES		$	-						$	-
24.	ADVERTISING		$	-						$	-
25.	OTHER (ATTACH LIST)		$	225,330						$	225,330
26.	TOTAL OPERATING DISBURSEMENTS		$	1,578,337		$	-	$	-	$	1,578,337
REORGANIZATION EXPENSES
27.	PROFESSIONAL FEES		$	-						$	-
28.	U.S. TRUSTEE FEES		$	-						$	-
29.	OTHER (ATTACH LIST)		$	-						$	-
30.	TOTAL REORGANIZATION EXPENSES		$	-		$	-	$	-	$	-
31.	TOTAL DISBURSEMENTS		$	1,578,337		$	-	$	-	$	1,578,337
32.	NET CASH FLOW		$	(204,307	)	$	-	$	-	$	(204,307	)
33.	CASH - END OF MONTH		$	9,565,361		$	9,565,361	$	9,565,361

Page 3a - Other Detail

NON-OPERATING RECEIPTS
	1,959		Non-Op Receipts - Interest on Asset Management Account Total
	12,249		Non-Op Receipts Other - Corporate Insurance Refund (over-payment) Total
	504		Non-Op Receipts Other - Payroll-related: Return of Rejected Child Support Payment Total
	83		Non-Op Receipts Other - Stock related: RSU vest Total
	7,538		Non-Op Receipts Other - Payroll-related: Monthly Wageworks reimbursement (HSA, FSA, HRA, COBRA) Total

	22,334		8. OTHER


OPERATING DISBURSEMENTS
	(825	)	Op Disbursement - Other - Management Fee on Investment Acct Total
	(180	)	Op Disbursement - Other - Payroll-related: H.S.A. Funds Total
	(8,039	)	Op Disbursement - Other - Rejection of NeuroNexus Customer Payment Erroneously sent to Nuvectra Total
	(106,822	)	Op Disbursement - Other Vendors Total
	(1,201	)	Op Disbursement - Other - Bank Fee
	(108,263	)	Op Disbursement - Other - Payroll-related: H.S.A. Funds

	225,330		25. OTHER

Monthly Operating Report

ACCRUAL BASIS-4

CASE NAME:		Nuvectra Corporation

CASE NUMBER:		19-43090

ACCOUNTS RECEIVABLE AGING			SCHEDULE AMOUNT as of Nov. 12			NOVEMBER 30			MONTH		MONTH
1.	0-30		$	5,148,863		$	3,431,923
2.	31-60		$	251,608		$	511,331
3.	61-90		$	76,541		$	158,661
4.	91+		$	717,900		$	746,997
5.	TOTAL ACCOUNTS RECEIVABLE		$	6,194,913		$	4,848,912		$	-	$	-
6.	AMOUNT CONSIDERED UNCOLLECTIBLE		$	(578,468	)	$	(578,468	)
7.	ACCOUNTS RECEIVABLE (NET)		$	5,616,444		$	4,270,444		$	-	$	-

AGING OF POSTPETITION TAXES AND PAYABLES							MONTH:		November 30 2019
AGING OF POSTPETITION TAXES AND PAYABLES
		0-30			31-60		61-90		91+
TAXES PAYABLE		DAYS			DAYS		DAYS		DAYS		TOTAL
1.	FEDERAL	$	21,758		$	-	$	-	$	-	$	21,758
2.	STATE	$	(14,628	)	$	-	$	-	$	-	$	(14,628	)
3.	LOCAL	$	-		$	-	$	-	$	-	$	-
4.	OTHER (ATTACH LIST)	$	-		$	-	$	-	$	-	$	-
5.	TOTAL TAXES PAYABLE	$	7,131		$	-	$	-	$	-	$	7,131

6.	ACCOUNTS PAYABLE	$	68,036		$	0	$	0	$	0	$	68,036

STATUS OF POSTPETITION TAXES						MONTH:			November 30 2019

						AMOUNT
			BEGINNING			WITHHELD				ENDING
			TAX			AND/OR		AMOUNT		TAX
FEDERAL			LIABILITY			ACCRUED		PAID		LIABILITY
1.	WITHHOLDING	Payroll	$	45,922		$	-	$	45,922.36	$	-
2.	FICA-EMPLOYEE	Payroll	$	17,544		$	-	$	17,544.15	$	-
3.	FICA-EMPLOYER	Payroll	$	16,348		$	21,758	$	16,347.98	$	21,758
4.	UNEMPLOYMENT	Payroll	$	-		$	-	$	-	$	-
5.	INCOME		$	-		$	-	$	-	$	-
6.	OTHER (ATTACH LIST)		$	-		$	-	$	-	$	-
7.	TOTAL FEDERAL TAXES		$	79,814		$	21,758	$	79,814	$	21,758
STATE AND LOCAL
8.	WITHHOLDING	Payroll	$	9,288		$	-	$	9,288.10	$	-
9.	SALES		$	9,888		$	-	$	18,055	$	(8,167	)
10.	EXCISE		$	-		$	-	$	-	$	-
11.	UNEMPLOYMENT	Payroll	$	-		$	-	$	-	$	-
12.	REAL PROPERTY		$	(9,690	)	$	3,230	$	-	$	(6,460	)
13.	PERSONAL PROPERTY		$	-		$	-	$	-	$	-
14.	OTHER (ATTACH LIST)		$	-		$	-	$	-	$	-
15.	TOTAL STATE & LOCAL		$	9,485		$	3,230	$	27,343	$	(14,628	)
16.	TOTAL TAXES		$	89,300		$	24,988	$	107,158	$	7,131

Monthly Operating Report

ACCRUAL BASIS-5

CASE NAME:		Nuvectra Corporation

CASE NUMBER:		19-43090

						MONTH:		November 30 2019
BANK RECONCILIATIONS
			Account #1			Account #2		Account #3
A.	BANK:		Silicon Valley Bank			Silicon Valley Bank		Silicon Valley Bank
B.	ACCOUNT NUMBER:		0826			2403		0906		TOTAL
C.	PURPOSE (TYPE):		Analysis Checking			Sweep Investment		Analysis Checking Lockbox
1.	BALANCE PER BANK STATEMENT		$	98,472		$	6,791,995	$	-	$	6,890,468
2.	ADD: TOTAL DEPOSITS NOT CREDITED		$	-		$	201,896	$	-	$	201,896
3.	SUBTRACT: OUTSTANDING CHECKS		$	102,346		$	-	$	-	$	102,346
4.	OTHER RECONCILING ITEMS		$	-		$	-	$	-	$	-
5.	MONTH END BALANCE PER BOOKS		$	(3,874	)	$	6,993,891	$	-	$	6,990,017
6.	NUMBER OF LAST CHECK WRITTEN			7280			N/A		N/A

INVESTMENT ACCOUNTS

			DATE OF		TYPE OF		PURCHASE		CURRENT
BANK, ACCOUNT NAME & NUMBER			PURCHASE		INSTRUMENT		PRICE		VALUE
7.	Silicon Valley Bank Asset Mgmnt x1350			N/A		N/A		N/A	$	2,575,343
8.
9.
10.
11.		TOTAL INVESTMENTS							$	2,575,343

CASH

12.		CURRENCY ON HAND							$	-

13.		TOTAL CASH - END OF MONTH							$	9,565,361

Monthly Operating Report

ACCRUAL BASIS-6

CASE NAME:		Nuvectra Corporation

CASE NUMBER:		19-43090

					MONTH:		November 13-30 2019

PAYMENTS TO INSIDERS AND PROFESSIONALS

INSIDERS
		TYPE OF	AMOUNT		TOTAL PAID
	NAME	PAYMENT	PAID		TO DATE
1.	Fred Parks	Payroll	$	16,146	$	16,146
2.	Jennifer Kosharek	Payroll	$	10,889	$	10,889
3.	Ben Tranchina	Payroll	$	9,799	$	9,799
4.	Bonnie Schmidt	Payroll	$	7,626	$	7,626
5.	N/A	N/A	$	-	$	-
6.	TOTAL PAYMENTS TO INSIDERS		$	44,461	$	44,461

PROFESSIONALS
		DATE OF
		COURT ORDER								TOTAL
		AUTHORIZING		AMOUNT		AMOUNT		TOTAL PAID		INCURRED
	NAME	PAYMENT		APPROVED		PAID		TO DATE		& UNPAID
1.	Norton Rose Fulbright LLP		N/A	$	-	$	-	$	-	$	122,581
2.	Dorsey & Whitney LLP		N/A	$	-	$	-	$	-	$	95,515
3.	Alvarez & Marsal LLC		N/A	$	-	$	-	$	-	$	101,000
4.	Stout		N/A	$	-	$	-	$	-	$	-
5.	KCC		N/A	$	-	$	-	$	-	$	50,000
6.	Lenders (SVB & Oxford)		N/A	$	-	$	-	$	-	$	-
7.	Unsecured Creditors Committee		N/A	$	-	$	-	$	-	$	-
8.	TOTAL PAYMENTS TO PROFESSIONALS					$	-	$	-	$	369,096

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE
PROTECTION PAYMENTS

		SCHEDULED		AMOUNTS
		MONTHLY		PAID		TOTAL
		PAYMENTS		DURING		UNPAID
NAME OF CREDITOR		DUE		MONTH		POSTPETITION
1.	Silicon Valley Bank	$	-	$	-	$	-
2.	Oxford Finance	$	-	$	-	$	-
3.	Integer (Plano office lease - rent only)	$	44,082	$	44,082	$	-
4.	EOS Development LLC (Broomfield office lease - rent only)	$	36,965	$	-	$	36,965
5.	N/A	$	-	$	-	$	-
6.	TOTAL	$	81,047	$	44,082	$	36,965

				Monthly Operating Report
				ACCRUAL BASIS-7
CASE NAME:		Nuvectra Corporation

CASE NUMBER:		19-43090

				MONTH:	November 30 2019

QUESTIONNAIRE

					YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE					X
	THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT					X
	OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR					X
	LOANS) DUE FROM RELATED PARTIES?
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES				X
	THIS REPORTING PERIOD?
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE					X
	DEBTOR FROM ANY PARTY?
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?					X
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES					X
	PAST DUE?
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?					X
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?					X
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS					X
	DELINQUENT?
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE				X
	REPORTING PERIOD?
12.	ARE ANY WAGE PAYMENTS PAST DUE?					X

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED
EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.
4. - The following payments on pre-pretition liabilities have been made this reporting period (from Nov. 13-30): employee contributions to 401(k) and employer match related to the Nov. 8 payroll; HSA funding related to the Nov. 8 payroll; the Nov. 22 pay day included pre-petition payroll (wages, taxes, etc.); see #11 for other taxes paid; Ch #7278 to LINA for Nov. life insurance, STD and LTD; 7 pre-petition checks cleared the bank on Nov. 13 before the bank could block the account
11. - The following pre-pretition taxes have been paid from Nov. 13-30: payroll-related taxes; Oct. sales & use tax.

INSURANCE
					YES	NO
1.	ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER				X
	NECESSARY INSURANCE COVERAGES IN EFFECT?
2.	ARE ALL PREMIUM PAYMENTS PAID CURRENT?				X
3.	PLEASE ITEMIZE POLICIES BELOW.

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES HAVE BEEN
CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION
BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.



INSTALLMENT PAYMENTS
TYPE OF					PAYMENT AMOUNT
POLICY		CARRIER	PERIOD COVERED		& FREQUENCY
N/A		N/A	N/A	N/A	N/A	N/A