Oncor, Inc. (fka ONCR)

[Stock]

I already did.

ONCOR, INC.
(Debtor-In-Possession)

Notes to Consolidated Financial Statements
(Unaudited)

1. BANKRUPTCY AND BUSINESS CHANGES

Chapter 11 Filing

On February 26, 1999 (the "Petition Date"), Oncor, Inc. and its wholly-owned subsidiary, Codon Pharmaceuticals, Inc. (collectively, the "Debtors"), filed voluntary petitions for relief under Chapter 11 of the United States Code (the "Bankruptcy Code") with the United States Bankruptcy Court for the District of Delaware, Wilmington, Delaware. Under Chapter 11, certain claims against the Debtors in existence prior to the filing of the petitions for relief under the Bankruptcy Code are stayed while the Debtors continues as Debtors-in-Possession.

Pursuant to the provisions of the Bankruptcy Code, all actions to collect upon any of the Company's liabilities as of the Petition Date or to enforce pre-petition contractual obligations were automatically stayed. Absent approval from the Bankruptcy Court, the Company is prohibited from paying pre- petition obligations. However, the Bankruptcy Court has approved payment of certain pre-petition liabilities as of the Petition Date such as employee wages and benefits and certain specified pre-petition obligations. Additionally, the Bankruptcy Court has allowed for the retention of legal and financial professionals and other payments to protect the holders of claims against the Company. As debtors-in-possession, the Company has the right, subject to Bankruptcy Court approval and certain other conditions, to assume or reject any pre-petition executory contracts and unexpired leases. Parties affected by such rejections may file pre-petition claims with the Bankruptcy Court in accordance with Bankruptcy procedures.