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T R O U B L E D C O M P A N Y R E P O R T E R
Saturday, August 15, 2020, Vol. 24, No. 227
Headlines
AKORN INC: Incurs $10.64 Million Net Loss at June 30
TECHNICAL COMMUNICATIONS: Incurs $482K Net Loss in Q3
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AKORN INC: Incurs $10.64 Million Net Loss at June 30
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Akorn, Inc., et al., filed with the U.S. Securities and Exchange
Commission their monthly operating report for the period from May
20, 2020 to June 30, 2020.
The Debtors' consolidated statement of operations showed a net
loss of $10.64 million on $13.19 million of net revenue for the
period.
As of June 30, 2020, the Debtors listed $1.14 billion in
consolidated total assets, $1.06 billion in consolidated total
liabilities, and $78.34 million in consolidated total shareholders'
equity.
The Debtors listed total cash receipts of $28.09 million and total
disbursements of $9.81 million.
A copy of the monthly operating report is available at the SEC at:
https://is.gd/kkQSu1
About Akorn, Inc.
Akorn, Inc., together with its Debtor and non-Debtor subsidiaries,
is a specialty pharmaceutical company that develops, manufactures,
and markets generic and branded prescription pharmaceuticals,
branded as well as private-label over-the-counter consumer health
products, and animal health pharmaceuticals. Akorn is
headquartered in Lake Forest, Illinois, and maintains a global
manufacturing presence, with pharmaceutical manufacturing
facilities located in Illinois, New Jersey, New York, Switzerland,
and India. Visit www.akorn.com for more information.
Akorn, Inc. sought Chapter 11 protection, as the Lead Debtor,
together with its 16 affiliates: (i) 10 Edison Street LLC (Bankr.
D. Del. Case No. 20-11178); (ii) 13 Edison Street LLC (Bankr. D.
Del. Case No. 20-11180); (iii) Advanced Vision Research, Inc.
(Bankr. D. Del. Case No. 20-11182); (iv) Akorn (New Jersey), Inc.
(Bankr. D. Del. Case No. 20-11183); (v) Akorn Animal Health, Inc.
(Bankr. D. Del. Case No. 20-11185); (vi) Akorn Ophthalmics, Inc.
(Bankr. D. Del. Case No. 20-11186); (vii) Akorn Sales, Inc.(Bankr.
D. Del. Case No. 20-11174); (viii) Clover Pharmaceuticals Corp.
(Bankr. D. Del. Case No. 20-11187); (ix) Covenant Pharma, Inc.
(Bankr. D. Del. Case No. 20-11188); (x) Hi-Tech Pharmacal Co., Inc.
(Bankr. D. Del. Case No. 20-11189); (xi) Inspire Pharmaceuticals,
Inc. ((Bankr. D. Del. Case No. 20-11190); (xii) Oak
Pharmaceuticals, Inc. (Bankr. D. Del. Case No. 20-11192); (xiii)
Olta Pharmaceuticals Corp. ((Bankr. D. Del. Case No. 20-11191);
(xiv) VersaPharm Incorporated (Bankr. D. Del. Case No. 20-11194);
(xv) VPI Holdings Corp. (Bankr. D. Del. Case No. 20-11193); and
(xvi) VPI Holdings Sub, LLC (Bankr. D. Del. Case No. 20-11195), on
May 20, 2020. The cases asre assigned to Judge John T. Dorsey.
In the petitions signed by Joseph Bonaccorsi, authorized signatory,
the Debtors disclosed total assets of $1,032,275,000, and total
debt of $1,051,769,000 as of March 31, 2020.
The Debtors tapped Patrick J. Nash, Jr., P.C., Gregory F. Pesce,
Esq., Christopher M. Hayes, Esq., Nicole L. Greenblatt, P.C., at
Kirkland & Ellis LLP and Kirkland & Ellis International LLP as
their general bankruptcy counsel. The Debtors tapped Paul N.
Heath, Esq., Amanda R. Steele, Esq., Zachary I. Shapiro, and Esq.,
Brett M. Haywood, Esq., at Ricahrds, Layton & Finger, P.A. as their
General Bankruptcy Counsel.
AlixPartners, LLP serves as the Debtors' Restructuring Advisor, PJT
Partners LP as their Financial Advisor and Investment Banker, Grant
Thornton LP as their Tax Advisor, and Kurtzman Carson Consultants,
LLC as their Notice and Claims Agent.
TECHNICAL COMMUNICATIONS: Incurs $482K Net Loss in Q3
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Technical Communications Corporation filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q, disclosing a
net loss of $482,478 on $598,730 of net revenue for the three
months ended June 27, 2020, compared to a net loss of $325,965 on
$1.23 million of net revenue for the three months ended June 29,
2019.
For the nine months ended June 27, 2020, the Company reported a net
loss of $1.32 million on $1.99 million of net revenue compared to a
net loss of $400,948 on $4.27 million of net revenue for the nine
months ended June 29, 2019.
As of June 27, 2020, the Company had $2.91 million in total assets,
$1.97 million in total liabilities, and $937,008 in total
stockholders' equity.
The Company has suffered recurring losses from operations and had
an accumulated deficit of $3,479,000 at June 27, 2020. These
factors raise substantial doubt about the Company's ability to
continue as a going concern within one year from the issuance date
of the unaudited consolidated financial statements included in this
Quarterly Report. The unaudited consolidated financial statements
do not include any adjustments to reflect the substantial doubt
about the Company's ability to continue as a going concern.
The Company anticipates that its principal sources of liquidity
will only be sufficient to fund activities to December 2020. In
order to have sufficient cash to fund operations beyond that point,
the Company will need to secure new customer contracts, raise
additional equity or debt capital and/or reduce expenses, including
payroll and payroll-related expenses.
Carl H. Guild Jr., president and CEO of Technical Communications
Corporation, commented, "As stated in our previous quarter's
earnings report, the COVID-19 pandemic had delayed several projects
that are in the pipeline, and those delays continue with some
limited progress toward the resumption of the procurement process.
At this point, the inability to conduct in-person meetings and
demonstrations is slowing progress. We do see that certain
countries are beginning to open up, and TCC is preparing to
increase its level of business development pursuit as soon as it is
allowed and safe.
"TCC is currently producing DSP 9000 and HSE 6000 radio security
equipment for a foreign military sales contract that was received
in May, 2020. It is expected that most of that equipment will be
delivered by the end of September 2020. This contract is the
second annual tranche in a multi-year procurement."
A full-text copy of the Form 10-Q is available for free at:
https://tinyurl.com/y4ccw659
About Technical Communications
Concord, Massachusetts-based Technical Communications Corporation
-- http://www.tccsecure.com-- specializes in secure
communications systems and customized solutions to protect highly
sensitive voice, data and video transmitted over a wide range of
networks.
As of Dec. 28, 2019, the Company had $2.85 million in total assets,
$1.09 million in total liabilities, and $1.75 million in total
stockholders' equity.
Stowe & Degon LLC, in Westborough, Massachusetts, the Company's
auditor since 2019, issued a "going concern" qualification in its
report dated Dec. 5, 2019, on the consolidated financial statements
for the year ended Sept. 28, 2019 citing that for the fiscal year
ended Sept. 28, 2019 the Company generated $631,000 of net income,
however for the prior seven year period from fiscal 2012 to fiscal
2018, the Company suffered recurring losses from operations and has
an accumulated deficit of $2,155,000 at Sept. 28, 2019. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog,
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