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): January 13, 2020

 


 

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 January 15, 2020, the Company filed with the Bankruptcy Court a monthly operating report for the month ended December 31, 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 Item 7.01, including Exhibit 99.1 incorporated by reference herein, 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.

 

Item 8.01     Other Events.

 

Approval of Sales Process Bidding Procedures

 

In the Chapter 11 Case, the Company is conducting a sales process to sell the assets of the Company to one or more bidders under the supervision of the Bankruptcy Court pursuant to Section 363 of the U.S. Bankruptcy Code. On January 13, 2020, the Bankruptcy Court entered an order approving, among other things, the bidding procedures to be used in connection with the sale of the Company’s assets (the “Order”). In accordance with the Order, the Company will conduct an auction on February 27, 2020, commencing at 10:00 a.m. CT, at the offices of Norton Rose Fulbright US LLP, 2200 Ross Avenue, Suite 3600, Dallas, Texas 75201, to determine the highest or otherwise best Qualified Bid (as defined in the Order). In order to participate in the auction, a bidder must submit a Qualified Bid to the Company in writing no later than February 24, 2020 at 5:00 p.m. CT. The Bankruptcy Court is scheduled to conduct a sale hearing to approve a sale of the Company’s assets on March 6, 2020 at 10:00 a.m. CT, and the Order provides that the sale of the assets is scheduled to close no later than March 19, 2020.

 

Stalking Horse Protections

 

The Company may select a Qualified Bid as a “stalking horse” bid. The Order provides that if a stalking horse bidder executes a purchase agreement on or before February 7, 2020, the stalking horse bidder is entitled to receive deal protections consisting of (i) reimbursement of reasonable out-of-pocket expenses, subject to an aggregate cap of $250,000, and (ii) payment of a break-up fee equal to 3.0% of the cash purchase price set forth in the stalking horse bidder’s Qualified Bid.

 

The above summary does not purport to be complete and is qualified in its entirety to the text of the Order, a copy of which is filed as Exhibit 99.2 to this Current Report on Form 8-K and incorporated by reference herein.

 

 

 

 

Additional Information Regarding the Chapter 11 Case

 

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.

 

Forward-Looking Statements

 

This Current Report on Form 8-K contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based only on the Company’s current beliefs, expectations and assumptions regarding the future of the Company’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions, and therefore they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and may be outside of the Company’s control. The Company’s performance may differ materially from those indicated in the forward-looking statements, and you should not rely on any of these forward-looking statements. Any forward-looking statement made by the Company is based only on information currently available to the Company and speaks only as of the date on which it is made. Important factors that could cause the Company’s actual results to differ materially from those indicated in the forward-looking statements include: (i) the Company’s ability to obtain Bankruptcy Court approval with respect to motions in the Chapter 11 Case; (ii) whether the Chapter 11 Case will enable to Company to sell its assets in an orderly manner (including whether any Qualified Bids will be submitted and whether any sale of the Company’s assets will be consummated by the closing deadline set by the Bankruptcy Court); (iii) the effects of the Chapter 11 Case on the Company and the interests of the Company’s creditors, equityholders and other stakeholders; (iv) the length of time the Company will operate under the Chapter 11 Case; (v) risks associated with third party motions in the Chapter 11 Case; and (vi) potential adverse effects of the Chapter 11 Case proceedings on the Company’s cash position and continuing operations. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

 

Item 9.01     Financial Statements and Exhibits.

 

(d)     Exhibits

 

99.1

Monthly Operating Report for the month ended December 31, 2019 as filed with the Bankruptcy Court on January 15, 2020

99.2

Order as entered by the Bankruptcy Court on January 13, 2020

 

 

 

 

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: January 15, 2020

/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

   

 

 

               

 

 

   

NORTHERN & EASTERN DISTRICTS OF TEXAS

   

 

 

               

 

 

 

 

REGION 6

   

 

 

               

 

 

   

MONTHLY  OPERATING  REPORT

   

 

 

               

 

 

 

MONTH  ENDING:

December 31

 

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

 

1/15/2020

 

 

PRINTED NAME OF RESPONSIBLE PARTY

 

DATE

 

 

               

 

 

               

 

 

               

 

 

PREPARER:

           

 

 

               

 

 

/s/ Jennifer J. Kosharek

 

Chief Financial Officer

 

 

ORIGINAL  SIGNATURE  OF  PREPARER

 

TITLE

 

 

               

 

 

Jennifer J. Kosharek

 

1/15/2020

 

 

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

DECEMBER 31

MONTH

 

 

ASSETS

 

 

 

 

 

 

 

1.

UNRESTRICTED  CASH

 $                        9,769,668

 $                     9,565,361

 $                     8,286,353

 

 

 

2.

RESTRICTED  CASH

 $                                   -   

 $                               -   

 $                               -   

 $                               -   

 

 

3.

TOTAL  CASH 

 $                        9,769,668

 $                     9,565,361

 $                     8,286,353

 $                               -   

 

 

4.

ACCOUNTS  RECEIVABLE  (NET)

 $                        5,616,444

 $                     4,270,444

 $                     3,025,206

 

 

 

5.

INVENTORY

 $                       13,714,792

 $                   13,503,589

 $                   13,049,987

 

 

 

6.

NOTES  RECEIVABLE

 $                                   -   

 $                               -   

 $                               -   

 $                               -   

 

 

7.

PREPAID  EXPENSES

 $                        2,075,993

 $                     1,971,200

 $                     1,696,383

 

 

 

8.

OTHER  (ATTACH  LIST)

 $                                   -   

 $                               -   

 $                               -   

 $                               -   

 

 

9.

TOTAL  CURRENT  ASSETS

 $                       31,176,897

 $                   29,310,594

 $                   26,057,929

 $                               -   

 

 

10.

PROPERTY,  PLANT  &  EQUIPMENT

 $                        5,149,385

 $                   11,909,274

 $                   11,909,274

 

 

 

11.

LESS:  ACCUMULATED DEPRECIATION/DEPLETION

 

 $                   (6,815,209)

 $                   (6,909,877)

 

 

 

12.

NET  PROPERTY,  PLANT  & EQUIPMENT

 $                        5,149,385

 $                     5,094,064

 $                     4,999,397

 $                               -   

 

 

13.

DUE FROM INSIDERS

 $                                   -   

 $                               -   

 $                               -   

 $                               -   

 

 

14.

OTHER  ASSETS  -  NET  OF AMORTIZATION  (ATTACH  LIST)

 $                                   -   

 $                               -   

 $                               -   

 $                               -   

 

 

15.

OTHER (ATTACH LIST)

 $                        1,457,176

 $                     1,438,411

 $                     1,400,555

 

 

 

16.

TOTAL ASSETS

 $                       37,783,458

 $                   35,843,070

 $                   32,457,881

 $                               -   

 

 

POSTPETITION  LIABILITIES

 

 

 

 

 

 

17.

ACCOUNTS  PAYABLE

 

 $                         68,036

 $                       225,061

 

 

 

18.

TAXES  PAYABLE

 

 $                        (14,628)

 $                           4,720

 

 

 

19.

NOTES  PAYABLE

 

 $                               -   

 $                               -   

 $                               -   

 

 

20.

PROFESSIONAL  FEES

 

 $                       369,096

 $                       984,480

 

 

 

21.

SECURED  DEBT

 

 $                               -   

 $                               -   

 $                               -   

 

 

22.

OTHER  (ATTACH  LIST)

 

 $                       559,952

 $                       836,758

 

 

 

23.

TOTAL  POSTPETITION LIABILITIES

 

 $                       982,457

 $                     2,051,018

 $                               -   

 

 

PREPETITION  LIABILITIES

       

 

 

 

24.

SECURED  DEBT

 $                       10,118,505

 $                   10,168,789

 $                   10,269,356

 

 

 

25.

PRIORITY  DEBT

 $                        1,751,288

 $                       900,091

 $                       600,548

 

 

 

26.

UNSECURED  DEBT

 $                        9,286,640

 $                     9,345,809

 $                     8,873,274

 

 

 

27.

OTHER (ATTACH LIST)

 $                                   -   

 $                               -   

 $                               -   

 $                               -   

 

 

28.

TOTAL  PREPETITION  LIABILITIES

 $                       21,156,433

 $                   20,414,689

 $                   19,743,178

 $                               -   

 

 

29.

TOTAL LIABILITIES

 $                       21,156,433

 $                   21,397,146

 $                   21,794,196

 $                               -   

 

 

EQUITY

 

 

 

   

 

 

 

30.

PREPETITION  OWNERS'  EQUITY 

 $                       96,444,483

 $                   16,627,024

 $                   14,445,924

 $                   10,663,685

 

 

31.

POSTPETITION  CUMULATIVE
PROFIT  OR  (LOSS)

 $                     (79,817,458)

 $                   (2,181,101)

 $                   (3,782,239)

 $                               -   

 

 

32.

DIRECT  CHARGES  TO  EQUITY
(ATTACH  EXPLANATION)

 $                                   -   

 $                               -   

 $                               -   

 $                               -   

 

 

33.

TOTAL  EQUITY

 $                       16,627,024

 $                   14,445,924

 $                   10,663,685

 $                   10,663,685

 

 

34.

TOTAL  LIABILITIES  &        OWNERS'  EQUITY

 $                       37,783,458

 $                   35,843,070

 $                   32,457,881

 $                   10,663,685

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GL Account Name

 

GL Acct #

 

Description

Notes

 

Nov. 12, 2019

   

Nov. 30, 2019

   

Dec. 31, 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     $ 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     $ 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 )   $ (349,155 )

Operating Leases Noncurrent Amortizati

    16011  

ASC 842 Right of Use Operating Leases Asset Amortization

Account reconciliation available upon request

  $ (72,604 )   $ (76,377 )   $ (84,047 )
                $ 1,457,176     $ 1,438,411     $ 1,400,555  
           

Per Page 1

  $ 1,457,176     $ 1,438,411     $ 1,400,555  
           

Difference

  $ -     $ -     $ -  

 

 

 

 

     

(CR) / DR

   

(CR) / DR

   

(CR) / DR

             

(CR) / DR

   

(CR) / DR

   

(CR) / DR

   

(CR) / DR

 
     

Balance

   

Balance

   

Balance

             

POST - Petition Portion Only

   

Pre-Petition Still Existing at

   

POST - Petition Portion Only

   

Pre-Petition Still Existing at

 

GL Account Name

Notes

 

Nov. 12, 2019

   

Nov. 30, 2019

   

Dec. 31, 2019

   

GL Acct #

     

Nov. 30, 2019

   

Nov. 30, 2019

   

Dec. 31, 2019

   

Dec. 31, 2019

 

Manual AP Accrual

Post petition amount per GL reconciliation. Services incurred not yet invoiced.

    (583,870 )     (1,180,121 )     (1,513,940 )     20106         (596,251 )             (1,229,811 )        

Received, Not Invoiced

      (228,712 )     (228,712 )     -       20110                         -          

Accrued Warranty

No update to accrual post petition. No new trials/perms.

    (282,084 )     (282,084 )     (282,084 )     20250                                    

Other Accrued Expenses

      1,651       5,949       (0 )     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 )     (16,842 )     20602         (187 )             (561 )        

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 )     (1,762,262 )     20610                                    

TOTAL OTHER LIABILITIES

      (2,943,269 )     (3,511,614 )     (3,575,129 )                                          
                                                                     
                                                                     

Accrued Salaries & Wages

Accrual all post petition

    (116,947 )     (284,422 )     (331,405 )     20210         (284,422 )     -       (331,405 )     -  

Accrued PTO

Employee balances re-set to 80 hours max on 12/31/19. Assuming most accrued pre-petition.

    (731,384 )     (720,525 )     (406,933 )     20211                 (720,525 )             (406,933 )

Accrued Commissions

Guarantees and earned amounts (plus auto allow) post-petition not yet paid at 12/31

    (657,527 )     -       (175,639 )     20215                 -       (175,639 )     -  

Accrued Medical

All paid / remitted

    -       -       -       20225                 -               -  

Accrued H.S.A & Flex Benefits

Pay day 1/3/20 not remitted by 12/31/19. All post-petition.

    (5,420 )     (0 )     (1,831 )     20230                 -       (1,831 )     -  

Accrued FSA

Unable to separate pre/post. Assuming most accrued pre-petition.

    (19,282 )     (17,465 )     (16,672 )     20231                 (17,465 )             (16,672 )

Accrued Vision

All paid / remitted

    -       -       -       20232                 -               -  

Accrued 401K

Pay day 1/3/20 not remitted by 12/31/19. All post-petition.

    (36,184 )     (112 )     (37,189 )     20235                 -       (37,189 )     -  

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 )     (222,029 )     20240         (48,188 )     (178,984 )     (19,450 )     (202,579 )

Accrued Payroll Taxes

Accrual all post petition

    (8,884 )     (21,758 )     (25,353 )     20245                 -       (25,353 )     -  

Accrued Sales Tax

The debit balance is primarily caused by a $30K 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       25,635       20255         -       16,882       -       25,635  

Accrued Use Tax

      (8,715 )     (8,715 )     (5,002 )     20260                 -               -  

Accrued State Taxes

      (15,095 )     (15,095 )     (15,095 )     20405                 -               -  

TOTAL PRIORITY LIABILITIES

      (1,751,288 )     (1,278,382 )     (1,211,511 )                       (900,091 )             (600,548 )
                                                                     
                                                                     
                                                                     

TOTAL TRADE A/P

      (6,343,371 )     (6,438,361 )     (6,738,200 )                                          
                                                                     
                                                                     

TOTAL THIS TAB

      (11,037,928 )     (11,228,358 )     (11,524,841 )                                          
TOTAL PER PAGE 1 TAB (Liabilities w/o Secured Debt)       (11,037,928 )     (11,228,358 )     (11,524,841 )                                          
                                                                     
                                                                     
                                  (929,048 )           (1,821,238 )      
           

Professional Fees Separately Disclosed

    (369,096 )           (984,480 )      
           

Total Post Petition Liabilities (Other)

    (559,952 )           (836,758 )      

 

 

 

 

 

 

 

 

 

 

 

Monthly Operating Report

 

 

           

ACCRUAL BASIS-2

 

 

CASE  NAME:

Nuvectra Corporation

     

 

 

 

 

 

 

     

 

 

CASE  NUMBER:

19-43090

     

 

 

             

 

 

             

 

 

INCOME STATEMENT

NOVEMBER 13-30

DECEMBER 1-31

MONTH

MONTH

 

 

REVENUES

 

 

 

 

 

 

 

1.

GROSS  REVENUES

 $                   191,673

 $                  314,168

 

 

 

 

2.

LESS:  RETURNS & DISCOUNTS

 $                   188,618

 $                  332,378

 

 

 

 

3.

NET  REVENUE 

 $                      3,055

 $                  (18,210)

 $                            -   

 $                         -   

 

 

COST  OF  GOODS  SOLD

 

 

 

 

 

 

4.

MATERIAL

 $                   211,203

 $                  182,556

 

 

 

 

5.

DIRECT  LABOR

 $                           -   

 $                          -   

 $                            -   

 $                         -   

 

 

6.

DIRECT  OVERHEAD

 $                           -   

 $                          -   

 $                            -   

 $                         -   

 

 

7.

TOTAL  COST  OF  GOODS  SOLD

 $                   211,203

 $                  182,556

 $                            -   

 $                         -   

 

 

8.

GROSS  PROFIT (LOSS)

 $                 (208,148)

 $                (200,766)

 $                            -   

 $                         -   

 

 

OPERATING  EXPENSES

 

 

 

 

 

 

9.

OFFICER / INSIDER  COMPENSATION

 $                     89,159

 $                  114,563

 

 

 

 

10.

SELLING  &  MARKETING

 $                   293,728

 $               1,351,157

 

 

 

 

11.

GENERAL & ADMINISTRATIVE

 $                1,051,830

 $               1,050,582

 

 

 

 

12.

RENT  &  LEASE

 $                     43,580

 $                    70,855

 

 

 

 

13.

OTHER (ATTACH LIST)

 $                           -   

 $                          -   

 $                            -   

 $                         -   

 

 

14.

TOTAL  OPERATING  EXPENSES

 $                1,478,297

 $               2,587,157

 $                            -   

 $                         -   

 

 

15.

INCOME (LOSS) BEFORE  NON-OPERATING INCOME & EXPENSE

 $               (1,686,444)

 $              (2,787,923)

 $                            -   

 $                         -   

 

 

OTHER  INCOME  &  EXPENSES

 

 

 

 

 

 

16.

NON-OPERATING INCOME (ATTACH LIST)

 $                     (2,258)

 $                        (99)

 

 

 

 

17.

NON-OPERATING EXPENSE (ATTACH  LIST)

 $                           -   

 $                          -   

 $                            -   

 $                         -   

 

 

18.

INTEREST  EXPENSE

 $                     72,498

 $                  284,363

 

 

 

 

19.

DEPRECIATION / DEPLETION

 $                     55,320

 $                    94,668

 

 

 

 

20.

AMORTIZATION 

 $                           -   

 $                          -   

 $                            -   

 $                         -   

 

 

21.

OTHER (ATTACH LIST)

 $                           -   

 $                          -   

 $                            -   

 $                         -   

 

 

22.

NET  OTHER (INCOME) & EXPENSES

 $                   125,560

 $                  378,932

 $                            -   

 $                         -   

 

 

REORGANIZATION  EXPENSES

 

 

 

 

 

 

23.

PROFESSIONAL  FEES

 $                   369,096

 $                  615,384

 

 

 

 

24.

U.S.  TRUSTEE  FEES

 $                           -   

 $                          -   

 

 

 

 

25.

OTHER (ATTACH LIST)

 $                           -   

 $                          -   

 $                            -   

 $                         -   

 

 

26.

TOTAL  REORGANIZATION  EXPENSES

 $                   369,096

 $                  615,384

 $                            -   

 $                         -   

 

 

27.

INCOME  TAX

 $                           -   

 $                          -   

 

 

 

 

28.

NET  PROFIT  (LOSS)

 $               (2,181,101)

 $              (3,782,239)

 $                            -   

 $                         -   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GL Account Name

 

GL Acct #

   

GL Entries
Nov. 13-30, 2019

   

GL Entries
Dec. 1-31, 2019

 

Description

Other Income/Expense

    80120     $ (2,258 )   $ (99 )

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

DECEMBER 1-31

MONTH

QUARTER

 

 

1.

CASH - BEGINNING  OF  MONTH

 $             9,769,668

 $            9,565,361

 $             8,286,353

 

 

 

RECEIPTS  FROM  OPERATIONS

 

 

 

 

 

 

2.

CASH  SALES

 $                        -   

 

 

 $                      -   

 

 

COLLECTION  OF  ACCOUNTS  RECEIVABLE

 

 

 

 

 

 

3.

PREPETITION

 $             1,351,696

 

 

 $            1,351,696

 

 

4.

POSTPETITION

 $                        -   

 $            1,235,009

 

 $            1,235,009

 

 

5.

TOTAL  OPERATING  RECEIPTS

 $             1,351,696

 $            1,235,009

 $                       -   

 $            2,586,705

 

 

NON-OPERATING RECEIPTS

 

 

 

 

 

 

6.

LOANS  &  ADVANCES (ATTACH  LIST)

 $                        -   

 

 

 $                      -   

 

 

7.

SALE  OF  ASSETS

 $                        -   

 

 

 $                      -   

 

 

8.

OTHER  (ATTACH  LIST)

 $                 22,334

 $                29,346

 

 $                51,680

 

 

9.

TOTAL  NON-OPERATING  RECEIPTS

 $                 22,334

 $                29,346

 $                       -   

 $                51,680

 

 

10.

TOTAL  RECEIPTS

 $             1,374,030

 $            1,264,354

 $                       -   

 $            2,638,384

 

 

11.

TOTAL  CASH  AVAILABLE

 $           11,143,698

 $          10,829,715

 $             8,286,353

 

 

 

OPERATING  DISBURSEMENTS

 

 

 

 

 

 

12.

NET  PAYROLL

 $             1,086,763

 $            1,676,732

 

 $            2,763,496

 

 

13.

PAYROLL TAXES PAID

 $                 40,237

 $                90,933

 

 $              131,170

 

 

14.

SALES,  USE  &  OTHER  TAXES  PAID

 $                 18,537

 $                51,457

 

 $                69,994

 

 

15.

SECURED / RENTAL / LEASES

 $                        -   

 $              318,821

 

 $              318,821

 

 

16.

UTILITIES

 $                        -   

 

 

 $                      -   

 

 

17.

INSURANCE

 $                207,471

 $              176,341

 

 $              383,812

 

 

18.

INVENTORY  PURCHASES

 $                        -   

 

 

 $                      -   

 

 

19.

VEHICLE  EXPENSES

 $                        -   

 

 

 $                      -   

 

 

20.

TRAVEL

 $                        -   

 

 

 $                      -   

 

 

21.

ENTERTAINMENT

 $                        -   

 

 

 $                      -   

 

 

22.

REPAIRS  &  MAINTENANCE

 $                        -   

 

 

 $                      -   

 

 

23.

SUPPLIES

 $                        -   

 

 

 $                      -   

 

 

24.

ADVERTISING

 $                        -   

 

 

 $                      -   

 

 

25.

OTHER  (ATTACH  LIST)

 $                225,330

 $              229,076

 

 $              454,406

 

 

26.

TOTAL  OPERATING  DISBURSEMENTS

 $             1,578,337

 $            2,543,362

 $                       -   

 $            4,121,699

 

 

REORGANIZATION  EXPENSES

 

 

 

 

 

 

27.

PROFESSIONAL  FEES

 $                        -   

 $                      -   

 

 $                      -   

 

 

28.

U.S.  TRUSTEE  FEES

 $                        -   

 $                      -   

 

 $                      -   

 

 

29.

OTHER  (ATTACH  LIST)

 $                        -   

 

 

 $                      -   

 

 

30.

TOTAL  REORGANIZATION  EXPENSES

 $                        -   

 $                      -   

 $                       -   

 $                      -   

 

 

31.

TOTAL  DISBURSEMENTS

 $             1,578,337

 $            2,543,362

 $                       -   

 $            4,121,699

 

 

32.

NET  CASH  FLOW

 $              (204,307)

 $          (1,279,007)

 $                       -   

 $          (1,483,314)

 

 

33.

CASH - END OF MONTH

 $             9,565,361

 $            8,286,353

 $             8,286,353

 

 

 

             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-OPERATING RECEIPTS

 
   

                     11,051

Non-Op Receipts - Interest on Asset Management Account Total

   

                          927

Non-Op Receipts Other  - Various state refunds

   

                     17,302

Non-Op Receipts Other  - Payroll-related: Return of Rejected Child Support Payment Total

   

                           65

Non-Op Receipts Other  - Stock related: RSU vest Total

     

Non-Op Receipts Other - Payroll-related: Monthly Wageworks reimbursement (HSA, FSA, HRA, COBRA) Total

       
   

                     29,346

8. OTHER  

       
       

OPERATING  DISBURSEMENTS

 
     

Op Disbursement - Other - Management Fee on Investment Acct Total

   

                     67,547

Op Disbursement - Other - Payroll-related: H.S.A./Acensus 401K/ F.S.A

     

Op Disbursement - Other - Rejection of NeuroNexus Customer Payment Erroneously sent to Nuvectra Total

   

                    154,223

Op Disbursement - Other Vendors Total

   

                       7,306

Op Disbursement - Other - Bank Fee 

     

Op Disbursement - Other - Payroll-related: H.S.A. Funds

       
   

                  (229,076)

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

DECEMBER 31

MONTH

 

 

1.

0-30

 

 $                           5,148,863

 $                     3,431,923

 $                     1,620,337

 

 

 

2.

31-60

 

 $                             251,608

 $                       511,331

 $                       882,820

 

 

 

3.

61-90

 

 $                               76,541

 $                       158,661

 $                       328,917

 

 

 

4.

91+

 

 $                             717,900

 $                       746,997

 $                       766,957

 

 

 

5.

TOTAL  ACCOUNTS  RECEIVABLE

 $                           6,194,913

 $                     4,848,912

 $                     3,599,032

 $                           -   

 

 

6.

AMOUNT  CONSIDERED  UNCOLLECTIBLE

 $                            (578,468)

 $                      (578,468)

 $                      (573,826)

 

 

 

7.

ACCOUNTS  RECEIVABLE  (NET)

 $                           5,616,444

 $                     4,270,444

 $                     3,025,206

 $                           -   

 

 

             

 

 

 

 

 

 

     

 

 

AGING  OF  POSTPETITION  TAXES  AND  PAYABLES

MONTH:

December 31

2019

 

 

 

   

 

     

 

 

 

 

0-30

31-60

61-90

91+

 

 

 

TAXES  PAYABLE

DAYS

DAYS

DAYS

DAYS

TOTAL

 

 

1.

FEDERAL

 $                  25,353

 $                                     -   

 $                               -   

 $                               -   

 $                     25,353

 

 

2.

STATE

 $                 (20,633)

 $                                     -   

 $                               -   

 $                               -   

 $                   (20,633)

 

 

3.

LOCAL

 $                         -   

 $                                     -   

 $                               -   

 $                               -   

 $                           -   

 

 

4.

OTHER (ATTACH LIST)

 $                         -   

 $                                     -   

 $                               -   

 $                               -   

 $                           -   

 

 

5.

TOTAL  TAXES  PAYABLE

 $                    4,720

 $                                     -   

 $                               -   

 $                               -   

 $                      4,720

 

 

             

 

 

6.

ACCOUNTS  PAYABLE

$181,876

$43,184

$0

$0

 $                   225,061

 

 

             

 

 

 

 

 

       

 

 

STATUS  OF  POSTPETITION  TAXES

 

MONTH:

December 31

2019

 

 

 

 

 

       

 

 

 

 

 

BEGINNING

AMOUNT

 

ENDING

 

 

 

 

 

TAX

WITHHELD AND/

AMOUNT

TAX

 

 

FEDERAL

 

LIABILITY

0R  ACCRUED

PAID

LIABILITY

 

 

1.

WITHHOLDING

Payroll

 $                                     -   

 $                       266,897

 $                       266,897

 $                           -   

 

 

2.

FICA-EMPLOYEE

Payroll

 $                                     -   

 $                         84,102

 $                         84,102

 $                           -   

 

 

3.

FICA-EMPLOYER

Payroll

 

 $                       106,016

 $                         80,663

 $                     25,353

 

 

4.

UNEMPLOYMENT

Payroll

 $                                     -   

 $                               -   

 $                               -   

 $                           -   

 

 

5.

INCOME

 

 $                                     -   

 $                               -   

 $                               -   

 $                           -   

 

 

6.

OTHER (ATTACH LIST)

 

 $                                     -   

 $                               -   

 $                               -   

 $                           -   

 

 

7.

TOTAL  FEDERAL  TAXES

 

 $                                     -   

 $                       457,015

 $                       431,662

 $                     25,353

 

 

 

STATE  AND  LOCAL

 

 

 

 

 

 

 

8.

WITHHOLDING

Payroll

 $                                     -   

 $                         56,160

 $                         56,160

 $                           -   

 

 

9.

SALES

 

 $                               (8,167)

 $                         (3,755)

 $                           8,710

 $                   (20,633)

 

 

10.

EXCISE

 

 $                                     -   

 $                               -   

 $                               -   

 $                           -   

 

 

11.

UNEMPLOYMENT

Payroll

 $                                     -   

 $                               -   

 $                               -   

 $                           -   

 

 

12.

REAL  PROPERTY

 

 $                               (6,460)

 $                           6,460

 $                               -   

 $                           -   

 

 

13.

PERSONAL  PROPERTY

 

 $                                     -   

 $                               -   

 $                               -   

 $                           -   

 

 

14.

OTHER (ATTACH LIST)

 

 $                                     -   

 $                               -   

 $                               -   

 $                           -   

 

 

15.

TOTAL  STATE  &  LOCAL

 

 $                             (14,628)

 $                         58,865

 $                         64,870

 $                   (20,633)

 

 

16.

TOTAL  TAXES 

 

 $                             (14,628)

 $                       515,879

 $                       496,532

 $                      4,720

 

 

             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monthly Operating Report

 

 

             

ACCRUAL BASIS-5

 

 

CASE NAME:

Nuvectra Corporation

       

 

 

 

 

 

 

       

 

 

CASE NUMBER:

19-43090

       

 

 

               

 

 

               

 

 

         

MONTH:

December 31

2019

 

 

BANK  RECONCILIATIONS

         

 

 

 

 

 

Account #1

Account #2

Account #3

Account #4

 

 

 

A.        BANK:

 

Silicon Valley Bank

Silicon Valley Bank

Silicon Valley Bank

Silicon Valley Bank

 

 

 

B.        ACCOUNT  NUMBER:

0826

2403

0906

8007

TOTAL

 

 

C.        PURPOSE  (TYPE):

Analysis Checking

Sweep Investment

Analysis Checking Lockbox

Utilities

 

 

 

1.

BALANCE  PER  BANK  STATEMENT

 $          37,525

 $     5,449,528

 $                        -   

 $                 41,533

 $     5,528,586

 

 

2.

ADD:  TOTAL  DEPOSITS  NOT  CREDITED

 $          33,033

 $        151,499

 $                        -   

 $                          -   

 $        184,532

 

 

3.

SUBTRACT:  OUTSTANDING  CHECKS

 $          5,006

 $                    -   

 $                        -   

 $                          -   

 $            5,006

 

 

4.

OTHER  RECONCILING  ITEMS

 $                -   

 $                    -   

 $                        -   

 $                          -   

 $                   -   

 

 

5.

MONTH  END  BALANCE  PER  BOOKS

 $          65,552

 $      5,601,027

 $                        -   

 $                  41,533

 $     5,708,112

 

 

6.

NUMBER  OF  LAST  CHECK  WRITTEN

                7358

N/A

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 

 $      2,578,242

 

 

8.

 

 

 

 

 

 

 

 

9.

 

 

 

 

 

 

 

 

10.

 

 

 

 

 

 

 

 

11.

TOTAL  INVESTMENTS

 

 

 

 

 $     2,578,242

 

 

               

 

 

CASH

 

         

 

 

 

 

 

         

 

 

12.

CURRENCY ON HAND

 

 

 

 

 $                 -   

 

 

               

 

 

13.

 

TOTAL  CASH  -  END  OF MONTH

 

 

 

 $     8,286,353

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monthly Operating Report

 

 

           

ACCRUAL BASIS-6

 

 

CASE  NAME:

Nuvectra Corporation

 

   

 

 

 

 

 

 

     

 

 

CASE  NUMBER:

19-43090

     

 

 

             

 

 

       

MONTH: 

December 1-31

2019

 

 

             

 

 

PAYMENTS  TO  INSIDERS  AND  PROFESSIONALS

 

     

 

 

 

 

         

 

 

INSIDERS

   

 

 

 

 

TYPE  OF

AMOUNT

TOTAL PAID

   

 

 

 

         NAME

PAYMENT

PAID

TO DATE

   

 

 

1.

Fred Parks

Payroll

 $           28,361

 $                         44,507

   

 

 

2.

Jennifer Kosharek

Payroll

 $           20,885

 $                         31,774

   

 

 

3.

Ben Tranchina

Payroll

 $           18,553

 $                         28,352

   

 

 

4.

Bonnie Schmidt

Payroll

 $           13,146

 $                         20,772

   

 

 

5.

N/A

N/A

 $                 -   

 $                               -   

   

 

 

6.

TOTAL  PAYMENTS TO  INSIDERS

 $           80,945

 $                       125,406

   

 

 

             

 

 

             

 

 

PROFESSIONALS

 

 

 

 

DATE  OF  COURT

 

 

 

TOTAL

 

 

 

 

ORDER  AUTHORIZING

AMOUNT

AMOUNT

TOTAL  PAID

INCURRED

 

 

 

              NAME

PAYMENT

APPROVED

PAID

TO  DATE

& UNPAID 

 

 

1.

Norton Rose Fulbright LLP

N/A

 $                 -   

 $                               -   

 $                       -   

 $             270,341

 

 

2.

Dorsey & Whitney LLP

N/A

 $                 -   

 $                               -   

 $                       -   

 $             177,473

 

 

3.

Alvarez & Marsal LLC

N/A

 $                 -   

 $                               -   

 $                       -   

 $             222,000

 

 

4.

Stout

N/A

 $                 -   

 $                               -   

 $                       -   

 $             102,336

 

 

5.

KCC

N/A

 $                 -   

 $                               -   

 $                       -   

 $             212,330

 

 

6.

Lenders (SVB & Oxford)

N/A

 $                 -   

 $                               -   

 $                       -   

 $                     -   

 

 

7.

Unsecured Creditors Committee

N/A

 $                 -   

 $                               -   

 $                       -   

 $                     -   

 

 

8.

TOTAL  PAYMENTS TO  PROFESSIONALS

 

 $                               -   

 $                       -   

 $             984,480

 

 

             

 

 

             

 

 

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

 $           97,868

 $                         97,868

 $                       -   

 

 

 

2.

Oxford Finance

 $           97,868

 $                         97,868

 $                       -   

 

 

 

3.

Integer / Greatbatch (Plano office lease - rent only)

 $           44,082

 $                         44,082

 $                       -   

 

 

 

4.

EOS Development LLC / 105 EDGEVIEW OWNER LP
(Broomfield office lease - rent, utilities, other fees per check)

 $           39,360

 $                         79,003

 $                       -   

 

 

 

5.

N/A

 $                 -   

 $                               -   

 $                       -   

 

 

 

6.

TOTAL 

 

 $         279,178

 $                       318,821

 $                       -   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monthly Operating Report

 

 

             

 ACCRUAL BASIS-7

 

 

CASE  NAME:

Nuvectra Corporation

 

   

 

 

 

 

 

 

 

     

 

 

CASE  NUMBER:

19-43090

     

 

 

               

 

 

         

MONTH:

December 31

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