BIOVEST INTERNATIONAL INC | 2013 | FY | 3

Adjustments upon Effective Date
  
 
Predecessor
June 30, 2013
  
Conversion of Debt for
Equity
    
Fresh Start
      
Successor
July 1, 2013
  
ASSETS
                      
Current assets:
                      
Cash
 $ 312,000   $ -     $ -       $ 312,000  
Accounts receivable
   464,000     -       -         464,000  
Costs and estimated earnings in excess of billings on uncompleted contracts
   151,000     -       -         151,000  
Inventories
   560,000     -       121,000  
(a)
     681,000  
Prepaid expenses and other current assets
   291,000     -       -         291,000  
Total current assets
   1,778,000     -       121,000         1,899,000  
Property and equipment
   1,304,000     -       -         1,304,000  
Patents and Trademarks
   179,000     -       (179,000 )
(b)
     -  
In-process research and development
   -     -       35,779,000  
(b)
     35,779,000  
Goodwill
   2,131,000     -       1,766,000  
(c)
     3,897,000  
Other assets
   536,000     -       -         536,000  
Total assets
 $ 5,928,000   $ -     $ 37,487,000       $ 43,415,000  
                               
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                              
Liabilities not subject to compromise:
                              
      Current liabilities:
                              
Accounts payable
 $ 787,000   $
-­
     $ -       $ 787,000  
Accrued liabilities
   844,000     (208,000 )
(d)
   -         636,000  
Customer deposits
   2,000     -       -         2,000  
Billing in excess of costs and estimated earnings
   73,000     -       -         73,000  
Notes payable, related party
   3,033,000     (3,033,000 )
(e)
   -         -  
Current maturities of long term debt
   -     18,000  
(f)
   -         18,000  
     Total current liabilities
   4,739,000     (3,223,000 )     -         1,516,000  
Long term debt, less current maturities
   -     311,000  
(g)
   -         311,000  
Other
   26,000     -       -         26,000  
Total liabilities not subject to compromise
   4,765,000     (2,912,000 )     -         1,853,000  
Liabilities subject to compromise
   44,350,000     (44,350,000 )
(f)(g)(h)
   -         -  
Total liabilities
   49,115,000     (47,262,000 )     -         1,853,000  
Stockholders' Equity (Deficit):
                              
Preferred stock
   -     -       -         -  
Predecessor common stock
   1,465,000     (1,465,000 )
(i)
   -         -  
Predecessor additional paid-in capital
   131,398,000     -       (131,398,000 )
(j)
     -  
Successor common stock
   -     1,000,000  
(d)(h)
   -         1,000,000  
Successor additional paid-in capital
   -     40,562,000  
(d)(h)
   -         40,562,000  
Accumulated deficit
   (176,050,000 )   7,165,000  
(d)(e)(h)(i)
   168,885,000  
(j)
     -  
Total stockholders' equity (deficit)
   (43,187,000 )   47,262,000       37,487,000         41,562,000  
Total liabilities and stockholders' equity (deficit)
 $ 5,928,000   $ -     $ 37,487,000       $ 43,415,000  
     
Notes to conversion of debt to new equity and fresh-start adjustments
 
 
(a)
To adjust inventory from lower of cost or market to fair value (expected selling price).
 
(b)
Adjustment to reflect the portion of the reorganization value which was attributed to identified intangible assets.
 
(c)
To record the excess of the reorganization value over the amount assigned to identifiable net assets.
 
(d)
To record the issuance of Reorganized Biovest Common Stock for unsecured debt.
 
(e)
To record the extinguishment of DIP Financing claims.
 
(f)
To record the affirmation of the current obligations due under the Minnesota Promissory Notes.
 
(g)
To record the affirmation of the non-current obligations due under the Minnesota Promissory Notes.
 
(h)
To record the discharge of liabilities subject to compromise pursuant to the Plan and the issuance of Reorganized Biovest Common Stock in satisfaction of such claims.
 
(i)
To record the cancellation of the Predecessor Company's common stock.
 
(j)
To reset Predecessor additional paid-in capital and accumulated deficit to zero and record net fresh-start adjustments.

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