MiddleBrook Pharmaceuticals, Inc (fka MBRKQ)

[Renee]

MBRKQ revoked:

http://www.sec.gov/litigation/admin/2014/34-73273.pdf

[Renee]

MBRKQ: SEC Admin Proceeding:

http://www.sec.gov/litigation/admin/2014/34-72475.pdf

[Iron Maiden]

Hey ...I had my shares "dispersed"(???) and for 2500 I received $230 CDN on Dec 23rd...

Never seen that before....

23-Dec-2011 -2,500 MIDDLEBROOK PHARMCTLS INC
DISP $0.00 $230.12

[jrallen81]

Sorry to show ignorance, but can someone in the know update me on the status of this security? I thought it was liquidating for $0.07, but etrade told me today it is worthless.... did something change? I don't see anything in the SEC filings but it is long enough now that I'm nervous.

[Iron Maiden]

TD shows this as invalid ticker?

[ne trader]

That's some big paintbrush on FRI.

[PlanMaestro]

That was excellent Madclown!

So from reading your post, the conclusion is that there is not much margin of safety. So the play, if there is one is the NOLs, in a potential shell as Enterprising Investor mentioned?

[Madclown]

http://thediligentinvestor.blogspot.com/2010/11/look-at-middlebrook-pharmaceuticals.html

I would also add the following as a recent update to the situation:

At first blush, Blue Ridge does appear to have just bot 8% of the outstanding shares of MBRKQ based on SEC filings. What is interesting is that Blue Ridge has invested alongside of Sam Zell's Equity Group Investments(EGI) on a number of occasions in the past few years. EGI held over 30% of the O/S of MBRKQ and were seated on the Board but dividended out their entire holdings to their investors on 11/22/2010. This is likely where the selling presure has come from lately. The only reason I say that Blue Ridge "appears" to have bot is that with their close ties, it is possible to deduce that Blue Ridge is one of the groups that had invested in EGI itself and thus only received a distribution of the shares that EGI just dividended out.

[PlanMaestro]

Follow the Oracle from Texas, he knows what he is doing

[Enterprising Investor]

Nothing wrong with liquidation.

The shell may have value at some point, once all the claims have been paid.

I would suggest that anyone interested wait at least five days to buy in based on the Schedule 13G filing by Blue Ridge Capital.

[windansea]

Well, I'm out at 0.070. I'll take my $21 of profit and treat my wife to dinner tonight. Will stay away from anything involving
"liquidation" in the future. Thanks for your kind inputs. I'm a relative newbie to this stuff and appreciate the wisdom of your cautions to me.

[PlanMaestro]

But you have probably noticed that the recent volume does not support a recent 8%+ buy. So,

1. they already had a substantial position below 5% before
2. something else is going on (and I heard some good hypothesis yesterday)

[Enterprising Investor]

I would have changed one sentence.

It should have read, "Their liquidation will be something to watch."

If only the company had filed in the Northern District of Texas (rather than Delaware), I would have had been able to attend hearings.

[windansea]

My knowledge is limited to what I read in the Ibox, posts here, and on the Yahoo board. But I do have confidence that John Griffen and his people are capable of much more thorough DD than I (or most posters on IHub) could ever do. I've had better luck in the past following hedge fund picks than stocks touted by pumpers. Its just a tiny position for now. Like a perpetual option. If the arbitration works in my favor, I make a few bucks.

But you are right about what "fun" is. That was a poor choice of words. GL

[PlanMaestro]

Just for fun? For fun I prefer to invite some friends for some low stakes poker. The stock market is for compounding, do you know anything about this company besides the Market Folly article?

[windansea]

Just for fun, I picked up 2K at 0.057 after reading the below.
How often do you find a Hedge Fund playing pinks??
Explain this: Blue Ridge bought almost 7 million shares (on 11/22??). All the charts I have looked at for back to June,2010 show 2 millions shares highest day volume. Guess they accumulated them in small bunches.

http://www.marketfolly.com/2010/12/john-griffins-blue-ridge-capital.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MarketFolly+%28Market+Folly%29
********************************************************

Friday, December 3, 2010
John Griffin's Blue Ridge Capital Discloses MiddleBrook Pharmaceuticals Stake (MBRKQ)

John Griffin's hedge fund Blue Ridge Capital just filed a 13G with the SEC regarding MiddleBrook Pharmaceuticals (MBRKQ). Per portfolio activity on November 22nd, Blue Ridge has disclosed a 8.05% ownership stake in MBRKQ with 6,969,697 shares. You can see commentary and analysis of Blue Ridge's other investments in the just-released issue of our newsletter.

It's difficult to discern whether or not this is a brand new position for Griffin's hedge fund. Securities traded on the pink sheets (like MiddleBrook is) aren't deemed reportable assets on 13F filings. So in their most recent 13F, Blue Ridge doesn't show a position in MBRKQ. However, if an investment firm were to acquire over 5% of a company's shares outstanding, they would have to file the respective 13G/D with the SEC, even if it's traded on the pink sheets (just as Blue Ridge has done). Readers will recall a similar scenario in the past when Bill Ackman's Pershing Square did not disclose their General Growth Properties stake (GGWPQ back then) on their 13F filing, but did disclose it in a 13D.

So, while it's unclear as to when Blue Ridge originally purchased MBRKQ, they have quite a sizable stake now, with recent enough activity to force the disclosure of the position due to crossing the ownership threshold amount.

This transaction is intriguing for a few reasons. First, Blue Ridge files 13G's or 13D's on a much less frequent basis than many other hedge funds we track as they don't seem to take concentrated positions as frequently. Second, MiddleBrook Pharmaceuticals is a micro-cap company ($5 million market cap) and filed for Chapter 11 bankruptcy protection in April of this year. Their restructuring will be something to watch.

Griffin founded Blue Ridge after leaving Julian Robertson's Tiger Management and is known as one of the successful 'Tiger Cubs.' For more from his fund, check out Blue Ridge's recommended reading list.

Per Google Finance, MiddleBrook Pharmaceuticals is "a pharmaceutical company focused on commercializing anti-infective drug products that fulfill unmet medical needs. The Company has developed a delivery technology called PULSYS, which enables the pulsatile delivery, or delivery in rapid bursts, of certain drugs."


Read more: http://www.marketfolly.com/2010/12/john-griffins-blue-ridge-capital.html#ixzz173sfJsLq

[poloran]

Equity tanked today to 7 cents on huge volume of 507k shares. It appears the investors who set the bid at 8 cents finally realized the equity is worth less than 5 cents. Better late than never!

[Enterprising Investor]

Debtor files Disclosure Statement (11/04/10)

http://www.kccllc.net/documents/1011485/1011485101104000000000005.pdf

[poloran]

MOR - September - Ugly Picture

This company continues to destroy value for equity. According to September's MOR, the company burned $1.3 mm in cash during the month versus a forecast of $760k. That's $540k more than anticipated, or a 71% negative variance. MBRK lacks leadership capable of winding up this mess without squandering the company's extremely limited cash resources. Even with a Management Incentive Plan providing a $750k bonus if equity gets $7.5 mm in distributions, the company is unable to execute on the simplest of tasks, which is to minimize spending cash at a company with $0 revenues and a single digit employee count!

The current share price of $0.08 implies an equity distribution of approx. $7 mm. Good luck buying there when the Par claim won't be settled by arbitration until February 2011 at the earliest. At the current rate of monthly cash burn of $1.3 from October until February, or 5 months, the estate would be left with $6.5 mm before paying post-petition and pre-petition obligations. At the end of September, those liabilities stood at $1.2 mm and $5.8 mm, respectively, not including Par's $3.5 mm claim. Even without a payout to Par, payments to claimholders would total $7.0 mm ($1.2 mm + $5.8mm), leaving equity with $0.

This is not a pretty picture for equity.

[poloran]

Over the weekend, I spent time trying to figure out whether I should keep my investment in Middlebrook or not. I’ve never invested in a liquidation before, so much of this is new to me. Here’s how I understand the situation as reflected by the most recent filings:

cash $18.3 mm

post petition
post petition payables 0.440 mm
other post petition liabilities 1.344

pre petition claims
unsecured priority claims 3.001 mm
unsecured non-priority claims 2.200
Par claim (max.) 3.500
Gleacher payment 0.600
Est. of operating expenses (Sept to Feb) 1.000
Seneca Parkway claim 0.400
Remaining cash for equity 5.819 mm

MIP payment 0.000
# of shares 86 mm
Value per share $0.68

If Par claim is disallowed, add $3.500 mm
Cash, net disallowed Par claim 9.319
MIP 0.750
Remaining cash for equity 8.569
Value per share $0.990

Share price on October 9th $0.880

If this is correct, the upside is 13.2%
and downside is 34.1%

I am interested to hear what other investors who know this name better than I think. If, however, this analysis is correct, I'm not sure I want to let my investment ride on an arbitration ruling in January 2011.

[Enterprising Investor]

Thank you for the insight.

Exactly has I thought. There is a difference between liqudating the assets for the purpose of paying off creditors and true liquidation.

It is highly likely for an investor (or a group of investors) to try to save the corporate shell.

[Madclown]

That’s a good question. This is supposed to be a straight cash liquidation. That’s basically all that’s left. I believe we have a few employees, a building lease, some receivables, some deposits, a pile of cash in the $18 million range and some pre and post-petition liabilities. However, it is interesting to note that the company has Federal and State NOL carry forwards of approximately $236.2 million and $186.3 million respectively. It would be a shame to see those wither on the vine.

There were some insiders that made an 11th hour play for a whole company buyout, literally hours before the gavel went down approving the sale of the assets. I am assuming that the would-be purchasers had assigned some value to $236 million in NOLs but I can’t be for sure. They are, without a doubt, one of the most complicated assets to accurately value.

I don’t know for certain whether there is anything to do in this case as far as NOL preservation. I am just not sure if “liquidation” and “shell company reverse merger” are compatible situations. It is my understanding that there are some folks on IHUB that do specialize in these things. If you (or anyone else reading this) are in contact with any of them, feel free to mention our situation and see if they can provide some guidance. It might even spark some renewed interest in the stock. If we had enough interest in the stock I might be convinced to update the MBRKQ case summary as events unfold.

[Enterprising Investor]

Staying up to speed on these situations so you don't get blown out just becomes a full-time job at some point and I already have one of those.

No joke! I have been averaging about five hours of sleep for months.

You could save me some time on MBRKQ. I apologize for not knowing the answer. I am confused if the reorg goal is a shell or liquidation?

[Madclown]

I'll respond on the BAD board later tonight so as not to hijack the discussion on MBRKQ.

[PlanMaestro]

Mad, many of us are following your write-ups. It would be a privilege and a pleasure to reciprocate whenever you ask.

The most recent MMPIQ POR offers to buy shares at $0.35 (current price $0.3) to the ones choose to sell and only double the number of shares for the ones that choose to stay. With a written down equity close to $2 per share, it looks like an interesting upside with the downside protected.

Talking about "buy when the world is selling and sell when the world is buying", am I blind or TRXAQ looks very cheap despite the lagging effort of the OEC?

PD: should I take this discussion to BAD?

[Madclown]

Maestro, I also subscribe to the "buy when the world is selling and sell when the world is buying" theory.

Congrats on the MMPIQ trade. I had a number of folks, yourself included if I remember, propping that trade down in the 5 to 7 cent range and I just didn't have the energy to take on another complex Chapter 11 case. I needed someone to write up a case summary like the one's I put out there. I saw that first POR that they filed and let them scare me away. Staying up to speed on these situations so you don't get blown out just becomes a full-time job at some point and I already have one of those.

GLTU

[PlanMaestro]

I have seen another doomsday POR open a window of opportunity (MMPIQ) and that is precisely the type of event I am personally looking for.

[Madclown]

I'll just put another thought out there for feedback.

We should see the POR by November 23, 2010 and since the Par claim will not likely have been arbitrated by that time then we should expect that the full claim of $3.5 million will be included, even if it turns out to be less or even a zero a few months later. It has always been included in full on the MORs so there is no reason to suspect it will be otherwise on the POR. Since the full amount of the claim will be listed on the POR it will not paint the rosiest scenario for equity. In fact, it will likely present the worst-case scenario. But the beauty of the doomsday POR is that it basically establishes and reveals the downside risk.

I am assuming that those who know this all too well are not willing to ride that roller coaster for the next 2 months only to have to wait another 3 to 4 additional months to get the actual distribution. So the trade looks like it is shaping up to be one where you exit ahead of the POR and reenter after the dust settles. That is of course, unless the risk adjusted rate of expected return gets so low in the interim due to selling pressure that the bull case can once again be made.

[PlanMaestro]

There are others following your posts madclown despite being quite. Just waiting for some reduction of the uncertainty: Qs tend to give many opportunities for the patient

[vpagano]

Makes perfect sense that the PAR claim being extended causes that .08 to break down because with a longer discount period to any cash payout the current price is going to fall. MM's don't want to wait around for peanuts, their opportunity costs are too high.

[Madclown]

One things for sure is that the 8 cent bid finally broke down. That had been solid support for many months. I think the extended timetable due to the Par claim arbitration pushes this out several months. The volume uptick coincides with this development and the market reception has not been positive. I am just glad there is someone else alive that I can converse with regarding this stock. This board has been a ghost town. I thought I might be the last to leave and was about to turn out the lights.

[poloran]

Crazy trading going on in Middlebrook. Today, volume reached over 600k shares on a stock that had been trading in the 20k to 30k volume range just a week earlier. I think the smart money realizes there's no upside as they've headed for the exits over the past few trading sessions.

[Madclown]

If you assume that the "other assets" are not collectable or are otherwise not available for distribution and if you assume all of the "other liabilities" are in fact going to survive (which is the most conservative approach) then you have it pegged about right.

[poloran]

See below. Am I missing anything here that suggests I should continue to hold?

I reviewed the latest Monthly Operating Report available, which is the August report. The report lists cash of $18.3 mm, post-petition liabilities of $1.8 mm, and pre-petition liabilities of $8.3 mm, not including the Par liability. Since August, the estate incurred expenses for September. Let’s assume those expenses consist only of payroll, rent and professional fees. So, let’s modestly assume these expenses are $173k, $33k, and $200k, respectively, for September. If you check the historical monthlies, payroll and professional fees have never been lower in previous months than what I’m assuming for September. Putting all this together, I get $18.3 mm - $1.8 mm $8.3 mm - $406k = $7.9 mm. Let’s assume $0 for Par’s claim. Based on this recovery to equity, the MIP will pay management $750k, leaving $7.1 mm for equity, which implies $8.3 cents. The best case scenario recovery is below $8.3 cents given that the estate will continue to incur expenses at least through January 2011, the date when the arbitrators will rule on the Par claim. If Par wins its claim, the recovery is reduced by another $3.5 mm, leaving $4.4 mm for equity, or 5.1 cents. The equity price closed today at 8 cents on 154k volume.

From these levels, it seems there's no upside and significant downside to Middlebrook equity.

[Madclown]

Welcome. You make some valid points. The increased volume with a downward bias in the share price certainly does give me some pause. I always like to see price increasing with higher than normal volume, not the opposite. I also did not like the idea of going to arbitration because of the increased timetable coupled with the potential for several months of additional cash burn. I would have preferred a ruling last week so that the Plan of Reorg could go forward, sooner rather than later. Now it looks like we have to wait until November to even see the first iteration of the POR.

My guess is that even if we get a POR in November, we probably can't get an equity distribution until the PAR claim is finalized in January or February 2011. I can only guess, but the timing of the selloff on Friday might have been by someone who didn't want to be holding securities that are essentially dead money for the next 4 to 5 months. It is true that there has been some nice bid support but there has also been some overhead resistance so it has been frustratingly rangebound for months on end. I think equity is still "in the money" here but holding this stock is not a "risk free" proposition and it requires a ton of patience.

[vpagano]

I think it's interesting how a trade like 300 shares (about $24) can drag down the stock but then a MM could buy 100,000 at the market. Always a chance for some manipulation with these bankruptcy stocks. I guess it depends on your cost-basis but I'll be staying put for awhile and put most of my effort into other potential situations.

[poloran]

First time poster!

I'm beginning to sour on Middlebrook's prospects for returning cash to equity investors as recent developments continue to disappoint. While Friday's deal capped Par's claim at $3.5 mm, an arbitration decision on the final claims resolution won't come until after February 2011, causing the estate to burn through a lot more cash than I originally anticipated. Also, I had hoped the judge would have disallow the Par claim entirely on Friday, another negative for this case.

For the past three months, payroll totalled $215k, $174k, and $388k. I'm shocked that payroll expense more than doubled from July to August. The direction of these expenses makes me wonder what's going on. The last time I checked, I thought this was a liquidation, not a company preparing for a new product launch.

The final development that's spooking me relates to trading volume. Volume on Friday exceeded 600,000 share versus average daily volume in the 20k to 30k range. These volume numbers concern me that "smart money" is bailing out of Middlebrook.

If anyone knows of something positive going on, please let me know. Otherwise, I'm tempted to bail on this company as well.

[vpagano]

Some very valid and interesting points. I agree this case is somewhat unique and new to me along the the lines you mentioned. As you stated the opportunity to "massage" some settlements could occur and just might to a degree, just not major enough to raise any red flags. Either way, I take the capping of the PAR claim as a good sign. Barring severe cash burn, we have a distribution floor, albeit one that can shift a little. However, I'm definitely a fan of any removal of downside risk.

[Madclown]

I think the two things that will impact upon recovery to shareholders at this point are cash burn and any amounts awarded to PAR by the 3 member arbitration panel. The limitation of the PAR claim to a range of $0 to $3.5 million goes a long way to help ensure that equity will receive a distribution.

Remember that the Management Incentive Plan does not afford any payout unless there is at least $7.5 million available for distribution to equity. The amounts payable under the MIP will be deducted from the residual equity to determine final payout to equity. If you extract the $750,000 payable under the MIP from the 7.5 million minimum distribution you get a $6.75 million distribution to equity. This equates to about $0.078 on a per share basis.

I could be wrong in my thinking but I see this recovery as a worst case scenario because I just don't see management agreeing to any settlement that would put their MIP distribution in jeopardy.

The way this MIP was structured presents an interesting scenario in itself since it calls for hard dollar awards within a range as opposed to a percentage of the equity recovery. As an example, if there were only $7.45 million available for equity (before factoring in the MIP) then the MIP does not payout anything to management and the equity recovery is 700k more because equity value fell 50k short of the $7.5 million level. This same conundrum occurs at each of the various payout levels in $2.5 million increments all the way up to $25 million and it creates an incentive to potentially massage the settlements if they fall near one of the recovery thresholds. I am not leveling any accusations here, just making an observation.

There has been a bit of selling recently but there has also been someone sitting at just above $0.08 taking anything and everything offered at that price. Because of the lack of liquidity it is difficult to justify getting very big in the name but I am using it as a learning case study because the dynamics here are so different from the typical Chapter 11 case because it involves a liquidation scenario that includes an EC and an equity distribution. I just don't run across too many cases where liquidation and equity recovery can be uttered in the same breath. I also find it quite fascinating how "efficient" the pricing of this stock has been all along given the lack of coverage and lack of any apparent interest from retail, hedge or institutional players.

[vpagano]

What other factors do you think will play into the disbursement to shareholders? Obviously the cash burn and an uncertainty discount rate, but even so there seems to be a nice upside at these levels. I could lower my cost basis maybe......

Thanks clown.

[Madclown]

News on PAR Claim:

http://www.kccllc.net/documents/1011485/1011485100930000000000004.pdf

Stipulation between the Debtors, Equity Committee and PAR Pharma includes the following provisions:

• The PAR claim will be heard by an arbitration panel;

• The PAR claim will be limited to a max possible recovery of $3.5 million, which is down from the $11.625 million they originally claimed to be entitled to; and

• Unless agreed otherwise, the arbitration hearing must be concluded by January 31, 2011 but the panel’s decision is not required to be rendered by this date.

[ne trader]

Not much to report about here but.......Volume = 200 shares.NO ONE is selling here.

[HDOGTX]

MBRKQ 8k out, MOR

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): September 20, 2010
MIDDLEBROOK PHARMACEUTICALS, INC.
(Exact name of registrant as specified in its charter)

Delaware 000-50414 52-2208264

(State or other jurisdiction
of incorporation) (Commission File Number) (IRS Employer Identification No.)



7 Village Circle, Suite 100,
Westlake, Texas
76262

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: [phone]
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

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

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

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





--------------------------------------------------------------------------------




Item 7.01. Regulation FD Disclosure.
On September 20, 2010, MiddleBrook Pharmaceuticals, Inc. (the “Company”) filed its unaudited monthly operating report (the “Monthly Operating Report”) for the period August 1, 2010 through August 31, 2010 with the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”), case number 10-11485. A copy of the Monthly Operating Report is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.
The Monthly Operating Report is limited in scope, covers a limited time period and has been prepared solely for the purpose of complying with reporting requirements of the Bankruptcy Court and the United States Bankruptcy Code, 11 U.S.C. §§ 101-1532 (the “Bankruptcy Code”). The financial information contained in the Monthly Operating Report is preliminary and unaudited and does not purport to show the Company’s financial statements in accordance with generally accepted accounting principles (“GAAP”) and, therefore, may exclude items required by GAAP. The Monthly Operating Report also does not include footnotes that would ordinarily be contained in the financial statements in the Company’s quarterly and annual reports filed pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Monthly Operating Report contains information for periods that may be shorter or otherwise different from those contained in reports required pursuant to the Exchange Act. The financial information has not been reviewed or otherwise verified for accuracy or completeness by the Company’s independent registered public accountants, and there can be no assurance that the Monthly Operating Report is complete. The Company cautions readers not to place undue reliance on the Monthly Operating Report, which may be subject to revision. The Monthly Operating Report is in the format required by the Bankruptcy Court and the Bankruptcy Code and should not be used for investment purposes. The information in the Monthly Operating Report should not be viewed as indicative of future results.
The information furnished pursuant to Item 7.01 and Exhibit 99.1 of this Current Report on Form 8-K shall not be deemed to be “filed” for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section. The information in Item 7.01 of this Current Report shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this Current Report, regardless of any general incorporation language in the filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
The following exhibits are furnished with this Current Report on Form 8-K:

Exhibit
Number Description

99.1 Monthly Operating Report for the Period from August 1, 2010 to August 31, 2010







--------------------------------------------------------------------------------




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.

MIDDLEBROOK PHARMACEUTICALS, INC.

Date: September 20, 2010 By: /s/ Brad Cole
Brad Cole
Senior Vice President, General Counsel and Secretary







--------------------------------------------------------------------------------




EXHIBIT INDEX

Exhibit
Number Description

99.1 Monthly Operating Report for the Period from August 1, 2010 to August 31, 2010




Exhibit 99.1
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE

In re MiddleBrook Pharmaceuticals, Inc. Case No. 10-11485
Debtor Reporting Period: August 1 — August 31, 2010

MONTHLY OPERATING REPORT
File with Court and submit copy to United States Trustee within 20 days after end of month
Submit copy of report to any official committee appointed in the case.

Document Explanation Affidavit/Supplement
REQUIRED DOCUMENTS Form No. Attached Attached Attached
Certifications
Schedule of Cash Receipts and Disbursements MOR-1 X
Bank Reconciliation (or copies of debtor’s bank reconciliations) see certifications X
Schedule of Professional Fees Paid MOR-1b X
Copies of bank statements see certifications X
Cash disbursements journals X
Statement of Operations MOR-2 X
Balance Sheet MOR-3 X
Status of Postpetition Taxes see certifications X
Copies of IRS Form 6123 or payment receipt
Copies of tax returns filed during reporting period
Summary of Unpaid Postpetition Debts MOR-4 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/ Brad Cole September 20, 2010

Signature of Authorized Individual*
Date

Brad Cole SVP, General Counsel

Printed Name of Authorized Individual
Title of Authorized Individual


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

MOR
(04/07)






--------------------------------------------------------------------------------




UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE

In re MiddleBrook Pharmaceuticals, Inc. Case No. 10-11485
Debtor Reporting Period: August 1 — August 31, 2010

CERTIFICATIONS
A. Bank Reconciliation Certification
The undersigned verifies that, to my knowledge, all of the Debtors’ August 31, 2010 bank balances have been reconciled in an accurate and timely manner.
B. Post-petition Taxes Certification
The undersigned verifies that, to my knowledge, all post-petition tax obligations, including but not limited to payroll, real property, income, franchise and other taxes have been paid to the proper taxing authority when due.

/s/ David Carlson September 20, 2010

Signature of Authorized Individual
Date

David Carlson VP, Finance and Treasurer

Printed Name of Authorized Individual
Title of Authorized Individual







--------------------------------------------------------------------------------





In re: MiddleBrook Pharmaceuticals, Inc. Case No. 10-11485
Debtor Reporting Period: August 1 — 31, 2010

MOR 1

Current Month Cumulative Filing to Date
Actual Forecast Actual Forecast

Beginning Date 1-Aug-10 1-Aug-10 3-May-10 3-May-10
Ending Date 31-Aug-10 31-Aug-10 31-Aug-10 31-Aug-10

Cash — Beginning Balance $ 17,552,575 $ 17,551,015 $ 5,257,718 $ 5,269,539

Receipts
Lockbox $ 285,464 $ 0 $ 601,881 $ 274,859
Misc Deposit $ 1,748,813 $ 1,710,000 $ 17,072,001 $ 18,664,000

Total Receipts $ 2,034,277 $ 1,710,000 $ 17,673,882 $ 18,938,859

Operating Disbursements
Gleacher $ 0 $ 0 $ 0 $ 0
Cardinal Co-Pay Redemptions $ 0 $ 0 $ 0 $ 0
Dr Directory $ 0 $ 0 $ (47,005 ) $ (96,831 )
Legal & Deal fees $ (209,308 ) $ (132,123 ) $ (683,753 ) $ (574,203 )
KCC LLC $ (25,513 ) $ (25,513 ) $ (25,513 ) $ (25,513 )
Creditors Committee Counsel & FA $ (57,373 ) $ (134,557 ) $ (57,373 ) $ (274,702 )
Equity Committee Counsel $ 0 $ 0 $ 0 $ 0
Other Professional Fees $ 0 $ 0 $ 0 $ 0
Payroll $ (387,908 ) $ (423,250 ) $ (1,038,058 ) $ (1,271,216 )
Benefits $ (77,657 ) $ (77,657 ) $ (77,657 ) $ (77,657 )
Severance $ 0 $ 0 $ 0 $ 0
Vacation Payout $ 0 $ 0 $ 0 $ 0
Invoices in A/P Aging $ (84,745 ) $ (109,621 ) $ (1,158,400 ) $ (1,077,993 )
Misc (TX rent, Insurance, ICS) $ (62,194 ) $ (59,036 ) $ (162,313 ) $ (159,436 )
Other $ (2,989 ) $ 0 $ (1,006,502 ) $ (1,164,458 )
voided checks $ 0 $ 0 $ 4,138

Total Operating Disbursements $ (907,687 ) $ (961,758 ) $ (4,252,435 ) $ (4,722,009 )


Net Operating Cash Flow $ 1,126,590 $ 748,242 $ 13,421,447 $ 14,216,850


Non-Operating Disbursements
Capex
Professional Fees

Total Non-Operating Disbursements $ 0 $ 0 $ 0 $ 0


Net Operating Cash Flow Before Financing $ 1,126,590 $ 748,242 $ 13,421,447 $ 14,216,850


Financing Activities
Interest Payments

Financing Activities $ 0 $ 0 $ 0 $ 0

Cash Flow $ 1,126,590 $ 748,242 $ 13,421,447 $ 14,216,850


Ending Cash Balance (per books) $ 18,679,165 $ 18,299,257 $ 18,679,165 $ 19,486,389


DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)

TOTAL DISBURSEMENTS $ (907,687 )
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS 0
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts) 0

TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES $ (907,687 )








--------------------------------------------------------------------------------





In re: MiddleBrook Pharmaceuticals, Inc. Case No. 10-11485
Debtor Reporting Period: August 1 — 31, 2010

Disbursements Journal
Checks cut during period

GL Posting Checkbook CM Trx
Date Source Document Amount Number Voided Paid ToRcvd From
8/5/2010 PMCHK $ 3,286.00 5104 No ExecuSuites I-270, Inc.
8/5/2010 PMCHK $ 1,151.63 5105 No VSP — (AT)
8/9/2010 PMCHK $ 77,657.00 5106 No United Healthcare Insurance Co.
8/12/2010 PMCHK $ 111,459.41 5107 No Alston & Bird LLP
8/12/2010 PMCHK $ 1,050.00 5108 No American Stock Transfer & Trust Co
8/12/2010 PMCHK $ 76.27 5109 No AT Conference
8/12/2010 PMCHK $ 811.71 5110 No AT&T Mobility
8/12/2010 PMCHK $ 839.77 5111 No A T & T 8174909174/8174908790
8/12/2010 PMCHK $ 57.85 5112 No AT&T
8/12/2010 PMCHK $ 718.77 5113 No ATT
8/12/2010 PMCHK $ 991.17 5114 No Avaya, inc.
8/12/2010 PMCHK $ 39.89 5115 No Robin N. Belsaas
8/12/2010 PMCHK $ 2,580.51 5116 No Brad Cole
8/12/2010 PMCHK $ 465.00 5117 No Corporation Service Company
8/12/2010 PMCHK $ 193.27 5118 No Department of Veterans Affairs
8/12/2010 PMCHK $ 88.00 5119 No Excel Micro
8/12/2010 PMCHK $ 1,050.00 5120 No FDA Export Certificate Program
8/12/2010 PMCHK $ 1,093.75 5121 No Lynne B. Marton
8/12/2010 PMCHK $ 974.00 5122 No Pure Compliance
8/12/2010 PMCHK $ 42,568.28 5123 No QPharma Corp
8/12/2010 PMCHK $ 111.12 5124 No New Jersey Wraparound Drug Rebate
8/12/2010 PMCHK $ 195.00 5125 No Cynthia Tirpak
8/12/2010 PMCHK $ 293.43 5126 No Dr. Donald J. Treacy
8/12/2010 PMCHK $ 33.96 5127 No Verizon Business
8/12/2010 PMCHK $ 150.00 5128 No WebEx Communications Inc.
8/12/2010 PMCHK $ 20,663.55 5129 No Young Conaway Stargatt & Taylor LLP
8/17/2010 PMCHK $ 2,626.47 5130 No A T & T 8174909174/8174908790
8/17/2010 PMCHK $ 54,146.66 5131 No Dickstein Shapiro LLP
8/17/2010 PMCHK $ 180.00 5132 No Fisher Clinical Services
8/17/2010 PMCHK $ 200.00 5133 No FlexAmerica, Inc.
8/17/2010 PMCHK $ 1,146.38 5134 No Gary Herman
8/17/2010 PMCHK $ 25,535.52 5135 No Integrated Commercialization Sol.
8/17/2010 PMCHK $ 292.28 5136 No IKON Financial Services Box 650016
8/17/2010 PMCHK $ 156.12 5137 No Iron Mountain
8/17/2010 PMCHK $ 50.00 5138 No Shred-it USA, DBA Shred-it Dallas
8/17/2010 PMCHK $ 80.00 5139 No Amber Tomlinson
8/17/2010 PMCHK $ 500.00 5140 No Transport Solutions Inc
8/17/2010 PMCHK $ 365.13 5141 No WorldWide express
8/17/2010 PMCHK $ 23,038.04 5142 No Bayard, P.A.
8/27/2010 PMCHK $ 79.60 5143 No ADP Commercial Leasing
8/27/2010 PMCHK $ 1.64 5144 No Colorado State Treasurer
8/27/2010 PMCHK $ 13,424.03 5145 No Delaware Secretary of State
8/27/2010 PMCHK $ 3,511.78 5146 No Department of Health Services
8/27/2010 PMCHK $ 60.00 5147 No Excel Micro
8/27/2010 PMCHK $ 305.78 5148 No IKON Financial Services Box 650016
8/27/2010 PMCHK $ 57,372.84 5149 No Invotex, Inc.
8/27/2010 PMCHK $ 25,513.49 5150 No Kurtzman Carson Consultants
8/27/2010 PMCHK $ 223.61 5151 No Nebraska Dept of Revenue
8/27/2010 PMCHK $ 160.60 5152 No NYS EPIC PROGRAM
8/27/2010 PMCHK $ 1,334.00 5153 No Pure Compliance
8/27/2010 PMCHK $ 25.47 5154 No New Jersey Wraparound Drug Rebate
8/27/2010 PMCHK $ 411.12 5155 No State of New Jersey Dept Health/Senior Serv
8/27/2010 PMCHK $ 750.00 5156 No SunTrust
8/27/2010 PMCHK $ 977.50 5157 No Thomson Financial Corporate Group
8/27/2010 PMCHK $ 897.72 5158 No UNUM Life Insurance
8/27/2010 PMCHK $ 213.65 5159 No WorldWide express
8/27/2010 PMCHK $ 748.87 5167 No Brad Cole
8/27/2010 PMCHK $ 489.43 5168 No Gary Herman

$ 483,417.07 Checks Cut








--------------------------------------------------------------------------------





In re: MiddleBrook Pharmaceuticals, Inc. Case No. 10-11485
Debtor Reporting Period: August 1 — 31, 2010

Debits to bank other than checks

Transaction Customer
Date Description Amount Bank Ref# Ref. # Payee / Description

8/2/2010 ACH DEBIT 3,725.26 401K Contributions
8/5/2010 ACH DEBIT 1,218.91 ADP fees
8/6/2010 ACH DEBIT 355.84 ADP fees
8/9/2010 DEBIT MEMO — SVB 500.00 LOCKBOX CHARGE
8/11/2010 DEBIT MEMO — Cap One 245,051.91 ADP — payroll
8/11/2010 DEBIT MEMO — Cap One 95,211.37 ADP — payroll taxes
8/17/2010 DEBIT MEMO 146.24 BCC PAYMENT #1104568
8/17/2010 ACH Withdrawal 227.37 The Utility Company
8/20/2010 ACH Withdrawal 382.08 ADP — payroll fees
8/25/2010 DEBIT MEMO 88.24 Bank Analysis Service Charge
8/27/2010 Wire 33,372.85 Maguire Partners — Sept rent
8/27/2010 Wire Withdrawal 28,120.77 ADP — Payroll-related
8/27/2010 ACH Withdrawal 70.05 ADP — payroll fees
8/30/2010 ACH Withdrawal 15,798.73 ADP — payroll related

$ 424,269.62 Debits to Bank other than Checks


Voided Checks from Prior Periods $ 0.00


$ 907,686.69 total disbursements


Checks cleared by bank:
8/2/2010 DEBIT MEMO — CapOne 32,230.76 CONTROL DISBURSEMENT/CLEARED CHECKS
8/3/2010 DEBIT MEMO — CapOne 170,771.52 CONTROL DISBURSEMENT/CLEARED CHECKS
8/4/2010 DEBIT MEMO — CapOne 7,717.95 CONTROL DISBURSEMENT/CLEARED CHECKS
8/5/2010 DEBIT MEMO — CapOne 2,995.85 CONTROL DISBURSEMENT/CLEARED CHECKS
8/9/2010 DEBIT MEMO — CapOne 3,688.87 CONTROL DISBURSEMENT/CLEARED CHECKS
8/10/2010 DEBIT MEMO — CapOne 1,252.82 CONTROL DISBURSEMENT/CLEARED CHECKS
8/11/2010 DEBIT MEMO — CapOne 81,078.59 CONTROL DISBURSEMENT/CLEARED CHECKS
8/17/2010 DEBIT MEMO — CapOne 156,863.40 CONTROL DISBURSEMENT/CLEARED CHECKS
8/18/2010 DEBIT MEMO — CapOne 24,892.53 CONTROL DISBURSEMENT/CLEARED CHECKS
8/19/2010 DEBIT MEMO — CapOne 8,778.56 CONTROL DISBURSEMENT/CLEARED CHECKS
8/23/2010 DEBIT MEMO — CapOne 29,575.61 CONTROL DISBURSEMENT/CLEARED CHECKS
8/24/2010 DEBIT MEMO — CapOne 24,253.59 CONTROL DISBURSEMENT/CLEARED CHECKS
8/27/2010 DEBIT MEMO — CapOne 54,511.79 CONTROL DISBURSEMENT/CLEARED CHECKS
8/30/2010 DEBIT MEMO — CapOne 2,860.51 CONTROL DISBURSEMENT/CLEARED CHECKS
8/31/2010 DEBIT MEMO — CapOne 1,334.00 CONTROL DISBURSEMENT/CLEARED CHECKS

$ 602,806.35








--------------------------------------------------------------------------------





In re: MiddleBrook Pharmaceuticals, Inc. Case No. 10-11485
Debtor Reporting Period: August 1 — 31, 2010

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID
This schedule is to include all retained professional payments from case inception to current month

Invoice Amount - Invoice Amount - Fees Expenses Objection Check Amount Paid Year-To-Date
Payee Period Covered Fees Expenses Approved Approved Deadline Number Date Fees Expenses Fees Expenses
Alston & Bird LLP 4/30 – 5/31/10 $ 255,194.00 $ 0.00 $ 255,194.00 $ 0.00 7/7/2010 5082 7/21/2010 $ 204,155.20 $ 204,155.20
Alston & Bird LLP 4/30 – 5/31/10 $ 0.00 $ 5,825.95 $ 0.00 $ 5,825.95 7/7/2010 5085 7/22/2010 $ 5,825.95 $ 5,825.95
Alston & Bird LLP 6/1 – 6/30/10 $ 129,621.50 $ 7,762.21 $ 129,621.50 $ 7,762.21 8/5/2010 5107 8/12/2010 $ 103,697.20 $ 7,762.21 $ 103,697.20 $ 7,762.21
Alston & Bird LLP 7/1 – 7/31/10 $ 100,767.00 $ 1,689.29 $ 100,767.00 $ 1,689.29 9/3/2010

Alston & Bird LLP subtotal $ 307,852.40 $ 13,588.16


Bayard, P.A. 5/11 – 5/31/10 $ 35,663.00 $ 212.04 $ 35,663.00 $ 212.04 7/19/2010 5086 7/22/2010 $ 28,530.40 $ 212.04 $ 28,530.40 $ 212.04
Bayard, P.A. 6/1 – 6/30/10 $ 29,506.00 $ 393.24 $ 28,306.00 $ 393.24 8/10/2010 5142 8/17/2010 $ 22,644.80 $ 393.24 $ 22,644.80 $ 393.24
Bayard, P.A. 7/1 – 7/31/10 $ 24,458.00 $ 623.21 $ 24,458.00 $ 623.21 9/7/2010

Bayard, P.A. subtotal $ 51,175.20 $ 605.28


Carella, Byrne, Bain annuity services $ 450.00 $ 6,993.00 $ 450.00 $ 6,993.00 N/A 5044 7/2/2010 $ 450.00 $ 6,993.00 $ 450.00 $ 6,993.00
Carella, Byrne, Bain patent maintenance $ 50.00 $ 516.00 $ 50.00 $ 516.00 N/A 2588 6/21/2010 $ 50.00 $ 516.00 $ 50.00 $ 516.00

Carella, Byrne, Bain subtotal $ 500.00 $ 7,509.00


Dickstein Shapiro LLP 5/11 – 5/31/10 $ 134,068.50 $ 4,147.20 $ 134,068.50 $ 4,147.20 7/19/2010 5087 7/22/2010 $ 107,254.80 $ 4,147.20 $ 107,254.80 $ 4,147.20
Dickstein Shapiro LLP 6/1 – 6/30/10 $ 63,546.50 $ 3,309.16 $ 63,546.50 $ 3,309.16 8/10/2010 5131 8/17/2010 $ 50,837.50 $ 3,309.16 $ 50,837.50 $ 3,309.16
Dickstein Shapiro LLP 7/1 – 7/31/10 $ 63,076.25 $ 2,223.29 9/3/2010

Dickstein Shapiro LLP subtotal $ 158,092.30 $ 7,456.36


Gleacher & Company 4/30 – 7/31/10 $ 660,000.00 $ 52,514.48 $ 660,000.00 $ 52,514.48 9/7/2010

Gleacher & Company subtotal $ 0.00 $ 0.00


Invotex, Inc. 5/26 – 6/30/10 $ 71,248.50 $ 374.04 $ 71,248.50 $ 374.04 8/12/2010 5149 8/27/2010 $ 56,998.80 $ 374.04 $ 56,998.80 $ 374.04
Invotex, Inc. 7/1 – 7/30/10 $ 14,514.25 $ 79.24 $ 14,514.25 $ 79.24 9/7/2010

Invotex, Inc. subtotal $ 56,998.80 $ 374.04


Kurtzman Carson Consultants 4/30/2010 $ 2,232.00 $ 78.20 $ 2,232.00 $ 78.20 N/A 5029 7/1/2010 $ 2,232.00 $ 78.20 $ 2,232.00 $ 78.20
Kurtzman Carson Consultants NYTIMES (July) $ 0.00 $ 3,680.00 $ 0.00 $ 3,680.00 N/A wire 7/9/2010 0 3,680.00 $ 0.00 $ 3,680.00
Kurtzman Carson Consultants 5/1 – 5/31/10 $ 44,420.50 $ 13,040.83 $ 44,420.50 $ 13,040.83 N/A 5080 7/21/2010 $ 44,420.50 $ 13,040.83 $ 44,420.50 $ 13,040.83
Kurtzman Carson Consultants 6/1 – 6/30/10 $ 25,815.50 $ 2,752.13 $ 25,815.50 $ 2,752.13 N/A 5096 7/27/2010 $ 25,815.50 $ 2,752.13 $ 25,815.50 $ 2,752.13
Kurtzman Carson Consultants 7/1 –7/31/10 $ 20,333.00 $ 5,180.49 $ 20,333.00 $ 5,180.49 N/A 5150 8/27/2010 $ 20,333.00 $ 5,180.49 $ 20,333.00 $ 5,180.49

Kurtzman Carson Consultants subtotal $ 92,801.00 $ 24,731.65


Young Conaway Stargatt & Taylor LLP 4/30 – 5/31/10 $ 41,889.00 $ 0.00 $ 41,889.00 $ 0.00 7/16/2010 5083 7/21/2010 $ 33,511.20 $ 33,511.20
Young Conaway Stargatt & Taylor LLP 4/30 – 5/31/10 $ 0.00 $ 1,099.45 $ 0.00 $ 1,099.45 7/16/2010 5088 7/22/2010 $ 1,099.45 $ 1,099.45
Young Conaway Stargatt & Taylor LLP 6/1 – 6/30/10 $ 25,033.50 $ 636.75 $ 25,033.50 $ 636.75 8/9/2010 5129 8/12/2010 $ 20,026.80 $ 636.75 $ 20,026.80 $ 636.75
Young Conaway Stargatt & Taylor LLP 7/1 – 7/31/10 $ 19,341.00 $ 1,717.81 8/31/2010

Young Conaway Stargatt & Taylor LLP subtotal $ 53,538.00 $ 1,736.20


Total $ 720,957.70 $ 56,000.69








--------------------------------------------------------------------------------





In re: MiddleBrook Pharmaceuticals, Inc. Case No. 10-11485
Debtor Reporting Period: August 1 — 31, 2010


August Cumulative
2010 Filing to Date
Gross Sales — 438,100
Sales Reserves and Allowances (26,382 ) (3,179,953 )

Net Revenue (26,382 ) (2,741,852 )

Cost of Goods Sold — 860,166

Salaries, Bonus & Temp Labor 183,314 3,126,127
Benefits, Payroll Taxes, Recruiting & Relocation 32,328 68,288

Subtotal: Salaries & Benefits 215,642 3,194,415

Stock-Based Compensation — 408,171
Marketing & Advertising (2,499 ) 4,011
Travel & Entertainment 2,318 48,505
Facilities and Equipment Related 49,888 219,871
Insurance 79,675 325,442
Distribution Expense 54,754 346,370
Office & General Lab Supplies 790 5,730
Consulting & Legal Fees 804,747 2,532,144
Patents & Licensing 4,108 254,719
Audit, IR & Financial Fees 9,431 (62,240 )
Non-Income Taxes 13,214 14,703
Depreciation and Amortization — 974,542
Director and SAB Fees 2,296 63,689


Subtotal: FTE Expenses 1,234,363 8,330,072


Marketing Costs (157 ) 169,576
Direct Project Costs — 53,114

Total Expenses 1,234,206 9,412,927

Income (Loss) from Operations (1,260,588 ) (12,154,780 )

Interest Income — 357
Other income (expense) 725 3,630

Net Income (Loss) Before Taxes (1,259,863 ) (12,150,793 )


Net Income (Loss) (1,255,763 ) (8,478,380 )








--------------------------------------------------------------------------------





In re: MiddleBrook Pharmaceuticals, Inc. Case No. 10-11485
Debtor Reporting Period: August 1 — 31, 2010


Current Petition
Month Date
Cash & Cash Equivalents 18,679,165 5,257,718
Accounts Receivable, net 205,100 (490,487 )
Inventory (0 ) 2,213,158
Prepaid and Other Current Assets 1,019,247 3,397,106

Property and Equipment — 14,341,773
Accumulated Depreciation — (12,460,925 )

Property and Equipment, net — 1,880,848

Deposits and Other Assets 525,714 680,580

Intangible Assets — 11,877,529
Accum. Amort — Intangibles — (2,643,218 )

Intangible Assets, net — 9,234,311

Total Assets 20,429,226 22,173,234

20000 — Accounts Payable — post-petition (440,236 ) —
21201 — Accrued Payable to Lilly — —
21210 — Accrued Professional Fees (1,255,013 ) —
21250 — Accrued R&D Costs — —
21275 — Accrued Keflex Copay Assistance — —
21276 — Accrued Moxatag Copay Assistance — —
21281 — Accrued Medicaid Rebates Payable — —
21282 — Accrued Returns — —
21290 — Other Accrued Expenses (65,420 ) —
23200 — Wages Payable (23,677 ) —
23620 — Employee Benefits Pay-401k — —
23650 — Employee Benefits — Flex Spending — —

Accounts Payable and Accrued Expenses — Post-Petition (1,784,346 ) —

20000 — Accounts Payable — pre-petion (840,661 ) (1,214,588 )
21110 — Accrued Severance (2,483,074 ) (281,258 )
21201 — Accrued Payable to Lilly — (5,252 )
21210 — Accrued Professional Fees (29,917 ) (199,917 )
21250 — Accrued R&D Costs — (136,067 )
21275 — Accrued Keflex Copay Assistance — (9,276 )
21276 — Accrued Moxatag Copay Assistance — (3,705,035 )
21281 — Accrued Medicaid Rebates Payable (45,780 ) (563,001 )
21282 — Accrued Returns — (1,945,797 )
21290 — Other Accrued Expenses — (292,773 )
23200 — Wages Payable (97,344 ) (306,521 )
23620 — Employee Benefits Pay-401k — (33,339 )
23650 — Employee Benefits — Flex Spending — (3,899 )
25000 — Other Current Liabilities (4,865,617 ) (4,810,772 )

Accounts Payable and Accrued Expenses — Pre-Petition (8,362,392 ) (13,507,496 )

Deferred Contract Revenue — non-current (pre-petition) (11,625,000 ) (11,625,000 )
Deferred Lease Expense (20,835 ) (18,340 )

Common Stock (865,119 ) (865,119 )
Additional Paid in Capital (322,373,995 ) (312,281,358 )

Retained Earnings 299,240,744 299,240,744
YTD P&L 25,361,717 16,883,336

Accumulated Deficit 324,602,460 316,124,080


Stockholders’ Equity 1,363,347 2,977,602

Liabilities & Stockholders’ Equity (20,429,226 ) (22,173,234 )







--------------------------------------------------------------------------------





In re: MiddleBrook Pharmaceuticals, Inc. Case No. 10-11485
Debtor Reporting Period: August 1 — 31, 2010


Other Post-petition liabilities
Professional bankruptcy fees estimates — creditors’ committee cousel & FA 100,000
Professional bankruptcy fees estimates — equity committee counsel 225,000
Professional bankruptcy fees estimates — corporate and local counsel 116,582
Professional bankruptcy fees — KCC estimate 21,000
Professional legal fees (July) 56,000
Investment Banker — Gleacher 712,514
Integrated Commercialization Solutions — August 46,433
Other miscellaneous May — August accruals — no invoices yet 42,904


Total of Accrued Professional Fees (acct 21210) & Other Accrued Expenses (acct 21290) $ 1,320,433








--------------------------------------------------------------------------------





In re: MiddleBrook Pharmaceuticals, Inc. Case No. 10-11485
Debtor Reporting Period: August 1 — 31, 2010

SUMMARY OF UNPAID POSTPETITION DEBTS

Attach aged listing of accounts payable.


Number of Days Past Due
Current 0-30 31-60 61-90 Over 90 Total
Accounts Payable 42,561 698 — (145 ) — 43,114
Wages Payable (401k contributions) — — — — — —
Taxes Payable (payroll-related taxes) — — — — — —
Rent/Leases-Building — — — — — —
Rent/Leases-Equipment — — — — — —
Secured Debt/Adequate Protection Payments — — — — — —
Professional Fees 39,675 288,292 68,955 — — 396,922
Amounts Due to Insiders* — — — — — —
Other: — — — — — —
Other: — — — — — —

Total Postpetition Debts 82,236 288,990 68,955 (145 ) — 440,036


Explain how and when the Debtor intends to pay any past-due postpetition debts.
Accounts Payable amounts in 0-30 days were paid in September. Professional fees are awaiting court approval or include remaining 20% of fees.

* “Insider” is defined in 11 U.S.C. Section 101(31).

FORM MOR-4
(04/07)






--------------------------------------------------------------------------------





In re: MiddleBrook Pharmaceuticals, Inc. Case No. 10-11485
Debtor Reporting Period: August 1 — 31, 2010

SUMMARY OF UNPAID POSTPETITION DEBTS

Voucher Document Current Trx Document
Vendor ID Vendor Name Number Date Amount Document Number Type Paid Date
ADP001 ADP 038551 8/13/2010 $ 2,995.85 516178 Invoice 9/8/2010
ALS002 Alston & Bird LLP 038531 7/31/2010 $ 20,153.40 JULY 20% Invoice
ALS002 Alston & Bird LLP 038421 6/30/2010 $ 25,924.30 06302010 20% Invoice
ALS002 Alston & Bird LLP 038358 7/14/2010 $ 51,038.80 MAY 2010 20% Invoice
ALS002 Alston & Bird LLP 038530 7/31/2010 $ 80,613.60 JULY 80% Invoice 9/8/2010
ALS002 Alston & Bird LLP 038532 7/31/2010 $ 1,689.29 JULY EXP Invoice 9/8/2010
BAY002 Bayard, P.A. 038540 8/18/2010 $ 4,891.60 JULY 2010 20% Invoice
BAY002 Bayard, P.A. 038461 6/30/2010 $ 5,661.20 JUNE 2010 20% Invoice
BAY002 Bayard, P.A. 038348 7/14/2010 $ 7,132.60 MAY 2010 20% Invoice
BAY002 Bayard, P.A. 038539 8/18/2010 $ 19,566.40 JULY 2010 80% Invoice 9/14/2010
BAY002 Bayard, P.A. 038541 8/18/2010 $ 623.21 JULY 2010 EXP Invoice 9/14/2010
DIC002 Dickstein Shapiro LLP 038528 7/31/2010 $ 12,615.25 JULY 20% Invoice
DIC002 Dickstein Shapiro LLP 038458 6/30/2010 $ 12,709.00 JUNE 2010 20% Invoice
DIC002 Dickstein Shapiro LLP 038351 7/14/2010 $ 26,813.70 MAY 2010 20% Invoice
DIC002 Dickstein Shapiro LLP 038527 7/31/2010 $ 50,461.00 JULY 80% Invoice 9/8/2010
DIC002 Dickstein Shapiro LLP 038529 7/31/2010 $ 2,223.29 JULY EXP Invoice 9/8/2010
DOC002 DoctorDirectory.Com, Inc. 038535 8/24/2010 $ 30,943.00 4931 Invoice 9/8/2010
GRA005 Gray Robinson 038463 7/31/2010 $ 23.82 10097780 Invoice
GRA005 Gray Robinson 038389 7/9/2010 $ 25.08 10094694 Invoice
GRA005 Gray Robinson 038391 7/9/2010 $ 168.60 10094696 Invoice
GRA005 Gray Robinson 038390 7/9/2010 $ 236.37 10094695 Invoice
GRA005 Gray Robinson 038274 6/9/2010 $ 252.00 10088120 Invoice
GRA005 Gray Robinson 038392 7/9/2010 $ 252.00 10094697 Invoice
GRA005 Gray Robinson 038465 7/31/2010 $ 252.00 10097784 Invoice
GRA005 Gray Robinson 038273 6/9/2010 $ 356.40 10088119 Invoice
GRA005 Gray Robinson 038393 7/9/2010 $ 378.00 10094699 Invoice
GRA005 Gray Robinson 038276 6/9/2010 $ 558.11 10088127 Invoice
GRA005 Gray Robinson 038464 7/31/2010 $ 567.00 10097781 Invoice
GRA005 Gray Robinson 038275 6/9/2010 $ 646.65 10088126 Invoice
GRA005 Gray Robinson 038388 7/9/2010 $ 1,433.00 10094691 Invoice
GRA005 Gray Robinson 038466 7/31/2010 $ 2,779.00 10097778 Invoice
GRA005 Gray Robinson 038272 6/9/2010 $ 3,591.00 10088115 Invoice
HDS001 H D Smith 038468 7/2/2010 $ 697.83 Q210034 Invoice 9/14/2010
HEA012 Healthcare & Family Services 037619 3/9/2010 $ (145.27 ) 1104220094 Credit Memo
INV003 Invotex, Inc. 038543 8/18/2010 $ 2,902.85 JULY 2010 20% Invoice
INV003 Invotex, Inc. 038455 6/30/2010 $ 14,249.70 JUNE 2010 20% Invoice
INV003 Invotex, Inc. 038542 8/18/2010 $ 11,611.40 JULY 2010 80% Invoice 9/14/2010
INV003 Invotex, Inc. 038544 8/18/2010 $ 79.24 JULY 2010 EXP Invoice 9/14/2010
IRO001 Iron Mountain 038589 8/31/2010 $ 1,547.53 RETRIEVAL Invoice 9/8/2010
UNI017 Unified TelData, Inc. 038546 8/24/2010 $ 2,455.00 417139 Invoice
UNI017 Unified TelData, Inc. 038545 8/24/2010 $ 4,620.00 417129 Invoice
YOU005 Young Conaway Stargatt & Taylor LLP 038519 7/31/2010 $ 3,868.20 JULY 2010 20% Invoice
YOU005 Young Conaway Stargatt & Taylor LLP 038452 6/30/2010 $ 5,006.70 JUNE 2010 20% Invoice
YOU005 Young Conaway Stargatt & Taylor LLP 038354 7/14/2010 $ 8,377.80 MAY 2010 20% Invoice
YOU005 Young Conaway Stargatt & Taylor LLP 038518 7/31/2010 $ 15,472.80 JULY 2010 80% Invoice 9/8/2010
YOU005 Young Conaway Stargatt & Taylor LLP 038520 7/31/2010 $ 1,717.81 JULY 2010 EXP Invoice 9/8/2010

$ 440,036.11








--------------------------------------------------------------------------------





In re: MiddleBrook Pharmaceuticals, Inc. Case No. 10-11485
Debtor Reporting Period: August 1 — 31, 2010

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

Accounts Receivable Reconciliation Amount
Total Accounts Receivable at the beginning of the reporting period 531,384.87
+ Amounts billed during the period —
- Amounts collected during the period (285,463.94 )
- Other adjustments during period (24,900.00 )
Total Accounts Receivable at the end of the reporting period 221,020.93

Accounts Receivable Aging Amount
0 - 30 days old —
31 - 60 days old 19,509.08
61 - 90 days old 9,787.62
91 + days old 191,549.88
Total Accounts Receivable 220,846.58
Amount considered uncollectible (Bad Debt) —
Accounts Receivable (Net) 220,846.58 174.35
reconciling item

DEBTOR QUESTIONNAIRE

Must be completed each month Yes No
1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below. X
2. Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below. X
3. Have all 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

Money Market account has been opened at Capital One Bank. Details have been provided to U.S. Trustee’s Office.
FORM MOR-5
(04/07)

[Madclown]

MBRKQ Transcript from August 26, 2010 Hearing

http://www.kccllc.net/documents/1011485/1011485100913000000000002.pdf

Looks like:

POR & Disclosure Statement were supposed to be filed last week

September 30 will be the PAR claim hearing

October 19 would be the preliminary POR hearing date but since they didn't file the POR last week they may not make the 28-day notice requirement in time to have the confirmation on this date. I would look for the Plan & DS to be filed this week or very early next week if they want to have October 19 as the confirmation date.

[Madclown]

Blip, I addressed your post at the link below to keep it off the MBRKQ board.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=54094997

[ne trader]

Try this board,good info.
http://investorshub.advfn.com/boards/board.aspx?board_id=17555

[blipmazter]

Sorry to hijack another post but I didn't know a better way to get in touch with you.
What do you think of Trico marine. Have you looked at it seeing if you had an input.

[ne trader]

Thank you and always,thx. for your work on ihub.Enjoy the holiday.

[Madclown]

Thanks. Have a nice holiday weekend.

[ne trader]

MC,PM sent to me regarding asst. position on this board.