Form 8-K AKORN INC For: Jul 31

Exhibit 99.1

 

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re Akorn, Inc., et al.	Case No. (Jointly Administered):	20-11177
	Reporting Period:	May 20, 2020 - June 30, 2020

 

MONTHLY OPERATING REPORT

 

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

 

				Document		Explanation		Affidavit/Supplement
REQUIRED DOCUMENTS		Form No.		Attached		Attached		Attached
Schedule of Cash Receipts and Disbursements		MOR-1		X
Bank Reconciliation (or copies of debtor's bank reconciliations)		MOR-1a		X		See Attestation		X
Schedule of Professional Fees Paid		MOR-1b		X
Copies of bank statements						X
Cash disbursements journals						X
Statement of Operations		MOR-2		X
Balance Sheet		MOR-3		X
Status of Postpetition Taxes		MOR-4		X		See Attestation		X
Copies of IRS Form 6123 or payment receipt						X
Copies of tax returns filed during reporting period						X
Summary of Unpaid Postpetition Debts		MOR-4		X		X
Listing of aged accounts payable		MOR-4		X
Accounts Receivable Reconciliation and 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.

 

Signature of Debtor		Date
Signature of Joint Debtor		Date
/s/ Duane Portwood		July 31, 2020
Signature of Authorized Individual*		Date
Duane Portwood		Chief Financial Officer
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.

 

 

In re Akorn, Inc., et al.	Case No. (Jointly Administered):	20-11177
	Reporting Period:	May 20, 2020 - June 30, 2020

 

Notes to the Monthly Operating Report

 

General: The report includes activity from the following Debtors and related Case Numbers:

 

Debtors		Case Number	Debtors		Case Number
Akorn, Inc.		Case 20-11177	Covenant Pharma, Inc.		Case 20-11188
10 Edison Street LLC		Case 20-11178	Hi-Tech Pharmacal Co., Inc.		Case 20-11189
13 Edison Street LLC		Case 20-11180	Inspire Pharmaceuticals, Inc.		Case 20-11190
Advanced Vision Research, Inc.		Case 20-11182	Oak Pharmaceuticals, Inc.		Case 20-11192
Akorn (New Jersey), Inc.		Case 20-11183	Olta Pharmaceuticals Corp.		Case 20-11191
Akorn Animal Health, Inc.		Case 20-11185	VersaPharm Incorporated		Case 20-11194
Akorn Ophthalmics, Inc.		Case 20-11186	VPI Holdings Corp.		Case 20-11193
Akorn Sales, Inc.		Case 20-11174	VPI Holdings Sub, LLC		Case 20-11195
Clover Pharmaceuticals Corp.		Case 20-11187

 

Notes to the MOR:

 

This Monthly Operating Report ("MOR") has been prepared solely for the purpose of complying with the monthly reporting requirements applicable in the bankruptcy cases and is in a format acceptable to the U.S. Trustee. The financial information contained herein is unaudited, limited in scope and as discussed below, is not prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) nor in accordance with federal or state securities laws or other applicable non-bankruptcy law or in lieu of complying with any periodic reporting requirements thereunder.

 

The unaudited financial statements have been derived from the books and records of the Debtors. The information furnished in this report includes primarily normal recurring adjustments, but not all the adjustments that would typically be made for the quarterly and annual financial statements to be in accordance with U.S. GAAP. Furthermore, the monthly financial information contained herein has not been subjected to the same level of accounting review and testing that Akorn, Inc., and related Debtors apply in the preparation of its quarterly and annual financial information in accordance with U.S. GAAP. Accordingly, upon the application of such procedures, the Debtors believe that the financial information may be subject to change, and these changes could be material.

 

The financial statements presented in MOR-2 and MOR-3 do not include elimination entries for intercompany balances related to non-debtor affiliates. Investments in subsidiary balances are recorded at cost which may not be in accordance with U.S. GAAP. The amounts currently classified as liabilities subject to compromise may be subject to future change as the Company completes its analysis of prepetition liabilities.

 

The results of operations contained herein are not necessarily indicative of results which may be expected from any other period or for the full year and may not necessarily reflect the results of consolidated operations, financial position and cash flows of the Debtors in the future. The Debtors caution readers not to place undue reliance upon the MOR. There can be no assurance that such information is complete and the MOR may be subject to revision.

 

Notes to MOR-1a:

 

The Debtors maintain 6 total bank accounts (collectively, the “Bank Accounts”) at two financial institutions (the “Banks”). The Bank Accounts vary in purpose and function.

 

Notes to MOR-2:

 

The Income Statement reflects revenue and expenses for May 20, 2020 to May 31, 2020 and the Month of June, 2020 on a consolidated basis for the US Debtor entities.

 

Notes to MOR-3:

 

The Balance Sheet reflects assets, liabilities, and stockholders equity on a consolidated basis for the US Debtor entities.

 

As a result of the commencement of these Chapter 11 Cases, the payment of pre-petition indebtedness is subject to compromise or other treatment under a Chapter 11 plan. The Bankruptcy Court authorized the Debtors to pay certain prepetition claims, including but not limited to general trade and tax claims. To the extent such claims have been categorized as “Liabilities Not Subject to Compromise,” the Debtors reserve their right to dispute their obligation to make such payments. The Debtors have been paying and intend to continue to pay undisputed post-petition claims arising in the ordinary course of business.

 

The liability information, except as otherwise noted, is listed as of the close of business as of the end of the month. Accordingly, the Debtors reserve all rights to amend, supplement or otherwise modify this Monthly Operating Report as necessary and appropriate, but shall be under no obligation to do so. The Debtors have paid certain prepetition liabilities in accordance with orders approved by the Bankruptcy Court authorizing such payments. The Debtors believe that all undisputed post-petition accounts payable have been and are being paid according to agreed-upon terms specific to each vendor and/or service provider and as authorized by the Bankruptcy Court. These payments are limited to payments made to vendors and service providers who provide services that are necessary to the operation of the Debtors’ business. In addition, the liabilities reported in this Monthly Operating Report do not reflect any analysis conducted by the Debtors regarding potential claims under section 503(b)(9) of the Bankruptcy Code. Accordingly, the Debtors reserve any and all of their rights to dispute or challenge the validity of any claims asserted under section 503(b)(9) of the Bankruptcy Code or the characterization of the structure of any transaction, document or instrument related to any creditor’s claim.

 

Notes to MOR-4:

 

Akorn, Inc., and related Debtors received authority pursuant to certain first-day orders for the payment of prepetition taxes and certain other prepetition liabilities. The Debtors are current on all post petition payables other than disputes that arise in the ordinary course of business. While an accounts payable aging is presented for trade accounts payable, all other post-petition liabilities are current and presented as such on MOR 3.

 

Notes to MOR-5:

 

The Debtors reconcile and age individual customer accounts receivables in the normal course of the Debtors' operations.

 

Notes to MOR-6 (Debtor Questionnaire):

 

An Account with Wilmington Savings Fund Society Bank was opened on May 21, 2020 per requirement of the DIP Credit Agreement [Docket: 14] that the Debtor maintain an account with a Depository Account Control Agreement (“DACA”) in place.

 

 

In re Akorn, Inc., et al.		MOR - 1
Debtors	Case No. (Jointly Administered):	20-11177
	Reporting Period:	May 20, 2020 - May 31, 2020

 

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

 

Actual Cash Activity (5/20/2020-5/31/2020)
USD in 000s

 

Case No.		20-11177		20-11182		20-11183		20-11189		20-11178		20-11180		20-11185		20-11186		20-11174		20-11187		20-11188		20-11190		20-11192		20-11191		20-11194		20-11193		20-11195
Debtor Entity Names		Akorn, Inc.		Advanced Vision Research, Inc.		Akorn (New Jersey), Inc.		Hi-Tech Pharmacal Co., Inc.		10 Edison Street LLC		13 Edison Street LLC		Akorn Animal Health, Inc.		Akorn Ophthalmics, Inc.		Akorn Sales, Inc.		Clover Pharmaceuticals Corp.		Covenant Pharma,  Inc.		Inspire Pharmaceuticals,  Inc.		Oak Pharmaceuticals,  Inc.		Olta Pharmaceuticals Corp.		VersaPharm Incorporated		VPI Holdings Corp.		VPI Holdings Sub, LLC		Total
RECEIPT
Net Customer Receipts		28,080		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		28,080
Other Receipts		9		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		9
Total Receipts		28,089		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		28,089
OPERATING DISBURSEMENTS
Royalties		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Payroll		2,643		-		712		814		-		-		-		-		298		-		-		-		-		-		-		-		-		4,467
Vendor Payments		4,099		116		45		256				-		-		-		-		-		-		-		-		-		-		-		-		4,516
Capex		51		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		51
Taxes		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Intercompany Trade		750		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		750
FDA Remediation		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Total Operating Disbursements		7,542		116		757		1,070		-		-		-		-		298		-		-		-		-		-		-		-		-		9,784
NON-RECURRING
Professional Fees (Financial & Legal)		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Interest Payments and Fees		28		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		28
Intercompany Funding		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Total Non-recurring Disbursements		28		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		28
Total Disbursements		7,570		116		757		1,070		-		-		-		-		298		-		-		-		-		-		-		-		-		9,811

 

 

In re Akorn, Inc., et al.		MOR - 1
Debtors	Case No. (Jointly Administered):	20-11177
	Reporting Period:	June 1, 2020 - June 30, 2020

 

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

 

Actual Cash Activity (6/01/2020-6/30/2020)
USD in 000s

 

Case No.		20-11177		20-11182		20-11183		20-11189		20-11178		20-11180		20-11185		20-11186		20-11174		20-11187		20-11188		20-11190		20-11192		20-11191		20-11194		20-11193		20-11195
Debtor Entity Names		Akorn, Inc.		Advanced Vision Research, Inc.		Akorn (New Jersey), Inc.		Hi-Tech Pharmacal Co., Inc.		10 Edison Street LLC		13 Edison Street LLC		Akorn Animal Health, Inc.		Akorn Ophthalmics, Inc.		Akorn Sales, Inc.		Clover Pharmaceuticals Corp.		Covenant Pharma,  Inc.		Inspire Pharmaceuticals,  Inc.		Oak Pharmaceuticals,  Inc.		Olta Pharmaceuticals Corp.		VersaPharm Incorporated		VPI Holdings Corp.		VPI Holdings Sub, LLC		Total
RECEIPT
Net Customer Receipts		56,321		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		56,321
Other Receipts		8		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		8
Total Receipts		56,329		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		56,329
OPERATING DISBURSEMENTS
Royalties		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Payroll		6,728		-		1,831		2,600		-		-		-		-		742		-		-		-		-		-		-		-		-		11,901
Vendor Payments		37,260		1,988		1,620		988		-		-		-		-		-		-		-		-		-		-		-		-		-		41,856
Capex		239		105		33		-		-		-		-		-		-		-		-		-		-		-		-		-		-		376
Taxes		82		-		-		252		-		-		-		-		13		-		-		-		-		-		-		-		-		346
Intercompany Trade		2,063		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		2,063
FDA Remediation		508		-		340		-		-		-		-		-		-		-		-		-		-		-		-		-		-		848
Total Operating Disbursements		46,880		2,092		3,824		3,840		-		-		-		-		755		-		-		-		-		-		-		-		-		57,392
NON-RECURRING
Professional Fees (Financial & Legal)		456		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		456
Interest Payments and Fees		5,311		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		5,311
Intercompany Funding		10,856		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		10,856
Total Non-recurring Disbursements		16,624		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		16,624
Total Disbursements		63,754		2,115		3,870		3,889		0		0		0		0		766		0		0		0		0		0		0		0		0		74,397
Total Disbursements for Q2-20		71,074		2,208		4,581		4,910		-		-		-		-		1,053		-		-		-		-		-		-		-		-		83,826
US TRUSTEE FEE CALCULATIONS ($)
US Trustee Fees		250,000		22,080		45,812		49,104		325		325		325		325		10,531		325		325		325		325		325		325		325		325		381,427

 

 

 

In re Akorn, Inc., et al.		MOR - 1a
Debtors	Case No. (Jointly Administered):	20-11177
	Reporting Period:	May 20, 2020 - May 31, 2020

 

BANK ACCOUNT INFORMATION
Whole Values

Legal Entity		Bank		Last 4 Digit of Account Number		Description		Bank Balance
Akorn, Inc.		Bank of America		8391		Collections and Concentration		$	69,129,633
Akorn, Inc.		Bank of America		6603		Operating Disbursements		$	68,726
Akorn, Inc.		Bank of America		0893		Payroll Disbursements		$	873,232
Akorn, Inc.		Bank of America		8409		Treasury Activity		$	56,940
Akorn, Inc.		Bank of America		8878		Utilities Adequate Assurance Account		$	285,000
Akorn, Inc.		Wilmington Savings Fund Society Bank		4323		Debtor in Possession / DACA		$	-	[A]

 

Note:
[A] Account was opened on May 21, 2020 per requirement of the DIP Credit Agreement [Docket: 14]
that the Debtor maintain an account with a Depository Account Control Agreement (“DACA”) in place.

 

 

In re Akorn, Inc., et al.		MOR - 1a
Debtors	Case No. (Jointly Administered):	20-11177
	Reporting Period:	June 1, 2020 - June 30, 2020

 

BANK ACCOUNT INFORMATION
Whole Values

Legal Entity		Bank		Last 4 Digit of Account Number		Description		Bank Balance
Akorn, Inc.		Bank of America		8391		Collections and Concentration		$	25,391,075
Akorn, Inc.		Bank of America		6603		Operating Disbursements		$	41,762
Akorn, Inc.		Bank of America		0893		Payroll Disbursements		$	122,338
Akorn, Inc.		Bank of America		8409		Treasury Activity		$	41,079
Akorn, Inc.		Bank of America		8878		Utilities Adequate Assurance Account		$	362,526
Akorn, Inc.		Wilmington Savings Fund Society Bank		4323		Debtor in Possession / DACA		$	58,169,108	[A]

 

Note:
[A] Account was opened on May 21, 2020 per requirement of the DIP Credit Agreement [Docket: 14]
that the Debtor maintain an account with a Depository Account Control Agreement (“DACA”) in place.

 

 

In re Akorn, Inc., et al.		MOR - 1a
Debtors	Case No. (Jointly Administered):	20-11177
	Reporting Period:	May 20, 2020 - June 30, 2020

 

BANK RECONCILIATION

The above-captioned debtors (the "Debtors") hereby submit this attestation regarding bank account reconciliations in lieu of providing copies of bank statements, journals, and account reconciliations.   I attest that each of the Debtors' bank accounts is reconciled to bank statements. The Debtors' standard practice is to ensure that each bank account is reconciled to bank statements once per month within 31 days after the month end.

 

/s/  Duane Portwood			July 31, 2020
Signature of Authorized Individual*			Date
Duane Portwood			Chief Financial Officer
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.

 

 

In re Akorn, Inc., et al.		MOR - 1b
Debtors	Case No. (Jointly Administered):	20-11177
	Reporting Period:	May 20, 2020 - May 31, 2020

 

SCHEDULE OF RETAINED PROFESSIONAL FEES PAID

Amount Paid

Cumulative Payments Since Filing

Payee

Role of Professional

Fees

Expenses

Fees

Expenses

KIRKLAND & ELLIS LLP

DEBTORS' COUNSEL

$

-

$

-

$

-

$

-

RICHARDS LAYTON & FINGER

DEBTORS' COUNSEL

$

-

$

-

$

-

$

-

PJT PARTNERS

DEBTORS' INVESTMENT BANKER

$

-

$

-

$

-

$

-

PRICEWATERHOUSECOOPERS CORPORATE FINANCE LLC

DEBTORS' INVESTMENT BANKER

$

-

$

-

$

-

$

-

ALIXPARTNERS LLP

DEBTORS' FINANCIAL ADVISOR

$

-

$

-

$

-

$

-

GRANT THORNTON LLP

DEBTORS' FINANCIAL ADVISOR

$

-

$

-

$

-

$

-

KURTZMAN CARSON CONSULTANTS INC

DEBTORS' ADMINISTRATIVE ADVISOR

$

-

$

-

$

-

$

-

JENNER & BLOCK

COMMITTEE COUNSEL

$

-

$

-

$

-

$

-

SAUL EWING ARNSTEIN & LEHR

COMMITTEE COUNSEL

$

-

$

-

$

-

$

-

HURON CONSULTING GROUP

COMMITTEE FINANCIAL ADVISOR

$

-

$

-

$

-

$

-

 

 

In re Akorn, Inc., et al.		MOR - 1b
Debtors	Case No. (Jointly Administered):	20-11177
	Reporting Period:	June 1, 2020 - June 30, 2020

 

SCHEDULE OF RETAINED PROFESSIONAL FEES PAID

Amount Paid

Cumulative Payments Since Filing

Payee

Role of Professional

Fees

Expenses

Fees

Expenses

KIRKLAND & ELLIS LLP

DEBTORS' COUNSEL

$

-

$

-

$

-

$

-

RICHARDS LAYTON & FINGER

DEBTORS' COUNSEL

$

-

$

-

$

-

$

-

PJT PARTNERS

DEBTORS' INVESTMENT BANKER

$

-

$

-

$

-

$

-

PRICEWATERHOUSECOOPERS CORPORATE FINANCE LLC

DEBTORS' INVESTMENT BANKER

$

-

$

-

$

-

$

-

ALIXPARTNERS LLP

DEBTORS' FINANCIAL ADVISOR

$

-

$

-

$

-

$

-

GRANT THORNTON LLP

DEBTORS' FINANCIAL ADVISOR

$

-

$

-

$

-

$

-

KURTZMAN CARSON CONSULTANTS INC

DEBTORS' ADMINISTRATIVE ADVISOR

$

-

$

-

$

-

$

-

JENNER & BLOCK

COMMITTEE COUNSEL

$

-

$

-

$

-

$

-

SAUL EWING ARNSTEIN & LEHR

COMMITTEE COUNSEL

$

-

$

-

$

-

$

-

HURON CONSULTING GROUP

COMMITTEE FINANCIAL ADVISOR

$

-

$

-

$

-

$

-

 

 

 

In re Akorn, Inc., et al.		MOR - 2
Debtors	Case No. (Jointly Administered):	20-11177
	Reporting Period:	May 20, 2020 - May 31, 2020

 

UNAUDITED

STATEMENT OF OPERATIONS (INCOME STATEMENT)

 

(Units in 000's)
		Consolidated
Net Revenue			13,187
COGS			9,418
Gross Profit			3,769
SG&A			6,197
Research & Development			1,313
Amortization of Intangibles			794
Goodwill Impairment			-
Impairment of intangibles			-
Litigation (Gain) Loss			-
Operating Income			(4,535	)
Interest expense, net			4,412
Deferred Financing Costs			-
Other			30
Bankruptcy			1,660
Income Tax			-
Net Income			(10,637	)

 

Note:

The numbers presented above should be viewed in conjunction with the notes at the beginning of the MOR.

 

 

In re Akorn, Inc., et al.				MOR - 2
Debtors			Case No. (Jointly Administered):	20-11177
			Reporting Period:	June 1, 2020 - June 30, 2020

 

UNAUDITED

STATEMENT OF OPERATIONS (INCOME STATEMENT)

 

(Units in 000's)
		Consolidated
Net Revenue			44,673
COGS			31,049
Gross Profit			13,624
SG&A			16,980
Research & Development			3,398
Amortization of Intangibles			2,051
Goodwill Impairment			-
Impairment of intangibles			400
Litigation (Gain) Loss			-
Operating Income			(9,205	)
Interest expense, net			11,190
Deferred Financing Costs			-
Other			138
Bankruptcy			4,149
Income Tax			(20,731	)
Net Income			(3,951	)

 

Note

The numbers presented above should be viewed in conjunction with the notes at the beginning of the MOR.  

 

 

In re Akorn, Inc., et al.				MOR - 3
Debtors			Case No. (Jointly Administered):	20-11177
			Balance as of:	May 31, 2020

 

UNAUDITED

BALANCE SHEET

 

(Units in 000's)
		Consolidated
Assets:
Cash			67,888
Accounts Receivable			132,649
Accounts Receivable (intercompany)			1,406
Inventory			167,931
Other			51,508
Other (Intercompany Loan - HETT)			1,830
Current Assets			423,212
PP&E, Net			217,955
Goodwill			-
Product License Rights			205,557
Other			32,002
Long-term Assets			227,512
Total Assets			1,106,238
Liabilities:
Liabilities Subject to Compromise			77,679
Accounts Payable			26,803
Accounts Payable (Intercompany)			2,232
Income Taxes Payable			192
Accrued Royalties			465
Accrued Compensation			12,975
Other Current Liabilities			47,637
Current Portion of LTD			854,694
Current Liabilities			944,998
Long-term Debt
Other			2,684
Long-term Liabilities			2,684
Total Liabilities			1,025,361
Shareholders' Equity:
Common Stock			606,150
Retained Earnings			(525,236	)
Accumulated Other Comprehensive Loss			(37	)
Total Shareholders' Equity			80,877
Liabilities & Shareholders' Equity:			1,106,238

 

Note:
The numbers presented above should be viewed in conjunction with the notes at the beginning of the MOR.

 

 

In re Akorn, Inc., et al.				MOR - 3
Debtors			Case No. (Jointly Administered):	20-11177
			Balance as of:	June 30, 2020

 

UNAUDITED

BALANCE SHEET

 

(Units in 000's)
		Consolidated
Assets:
Cash			78,631
Accounts Receivable			129,394
Accounts Receivable (intercompany)			1,527
Inventory			172,246
Other			74,046
Other (Intercompany Loan - HETT)			1,830
Current Assets			457,674
PP&E, Net			217,261
Goodwill			-
Product License Rights			203,107
Other			31,443
Long-term Assets			232,823
Total Assets			1,142,308
Liabilities:
Liabilities Subject to Compromise			76,516
Accounts Payable			27,075
Accounts Payable (Intercompany)			3,881
Income Taxes Payable			-
Accrued Royalties			1,968
Accrued Compensation			16,998
Other Current Liabilities			79,542
Current Portion of LTD			855,246
Current Liabilities			984,710
Long-term Debt
Other			2,741
Long-term Liabilities			2,741
Total Liabilities			1,063,967
Shareholders' Equity:
Common Stock			607,565
Retained Earnings			(529,187	)
Accumulated Other Comprehensive Loss			(37	)
Total Shareholders' Equity			78,341
Liabilities & Shareholders' Equity:			1,142,308

 

Note:
The numbers presented above should be viewed in conjunction with the notes at the beginning of the MOR.

 

 

 

In re Akorn, Inc., et al.				MOR - 4
Debtors			Case No. (Jointly Administered):	20-11177
			Reporting Period:	May 20, 2020 - June 30, 2020
STATUS OF POST-PETITION TAXES

 

The above-captioned debtors (the "Debtors") hereby submit this attestation regarding Status of Post-petition Taxes in lieu of providing copies of post-petition tax payments and tax returns filed during reporting period.

 

I attest that each of the Debtors' taxing authorities have been paid on time when post-petition amounts become due. Also, tax returns are being filed in an orderly and timely fashion in accordance with tax return reporting deadlines.

 

/s/  Duane Portwood			July 31, 2020
Signature of Authorized Individual*			Date
Duane Portwood			Chief Financial Officer
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.

 

 

In re Akorn, Inc., et al.				MOR - 4
Debtors			Case No. (Jointly Administered):	20-11177
			Balance as of:	May 31, 2020 & June 30, 2020
ACCOUNTS PAYABLE AGING

 

As of May 31, 2020		Current				0-30 Days				31 - 60 Days				61 - 90 Days				> 90 Days				Total
Accounts Payables		$	20,890,620			$	5,103,418			$	503,491			$	182,691			$	122,779			$	26,803,000
Percentage of Total			78	%			19	%			2	%			1	%			0	%			100	%

 

As of June 30, 2020		Current				0-30 Days				31 - 60 Days				61 - 90 Days				> 90 Days				Total
Accounts Payables		$	18,363,684			$	5,732,776			$	2,239,463			$	518,401			$	220,676			$	27,075,000
Percentage of Total			68	%			21	%			8	%			2	%			1	%			100	%

 

 

In re Akorn, Inc., et al.				MOR - 5
Debtors			Case No. (Jointly Administered):	20-11177
			Balance as of:	May 31, 2020 & June 30, 2020
ACCOUNTS RECEIVABLE AGING AND RECONCILIATION

 

As of May 31, 2020		Current				0-30 Days				31 - 60 Days				61 - 90 Days				> 90 Days				Total
Gross Accounts Receivables		$	349,163,817			$	12,250,473			$	3,651,906			$	1,755,170			$	11,318,280			$	378,139,646
Percentage of Total			92	%			3	%			1	%			0	%			3	%			100	%

 

Gross to Net Accounts Receivable as of May 31, 2020

Amount

Total Gross Accounts Receivable at the end of the reporting period

378,139,646

- Reserves for: Chargebacks, Rebates, Other

245,490,646

Total Net Accounts Receivable at the end of the reporting period

132,649,000

 

As of June 30, 2020		Current				0-30 Days				31 - 60 Days				61 - 90 Days				> 90 Days				Total
Gross Accounts Receivables		$	231,296,475			$	110,278,461			$	21,648,351			$	2,123,278			$	11,272,507			$	376,619,073
Percentage of Total			61	%			29	%			6	%			1	%			3	%			100	%

 

Gross Net Accounts Receivable as of June 30, 2020

Amount

Total Gross Accounts Receivable at the end of the reporting period

376,619,073

- Reserves for: Chargebacks, Rebates, Other

247,225,073

Total Net Accounts Receivable at the end of the reporting period

129,394,000

 

 

In re Akorn, Inc., et al.				MOR - 6
Debtors			Case No. (Jointly Administered):	20-11177
			Reporting Period:	May 20, 2020 - June 30, 2020
DEBTORS 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 postpetition 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			[A]

 

Note:

[A] Please refer to the "Notes to the Monthly Operating Report" page for more details.

 

 

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