Regulation FD Presentation Form 8 K

Debtor(s)

Statement of cash receipts and disbursements

Balance sheet containing the summary and detail of the assets, liabilities and equity (net worth) or deficit

Statement of operations (profit or loss statement)

Accounts receivable aging

Postpetition liabilities aging

Statement of capital assets

Schedule of payments to professionals

Schedule of payments to insiders

All bank statements and bank reconciliations for the reporting period

Description of the assets sold or transferred and the terms of the sale or transfer

/s/ Michael D. Sirota

Michael D. Sirota

06/28/2024

07601

Part 1: Cash Receipts and Disbursements

a.   Cash balance beginning of month

b.  Total receipts (net of transfers between accounts)

c.   Total disbursements (net of transfers between accounts)

d.  Cash balance end of month (a+b-c)

e.   Disbursements made by third party for the benefit of the estate

f.   Total disbursements for quarterly fee calculation (c+e)

Part 2: Asset and Liability Status

(Not generally applicable to Individual Debtors. See Instructions.)

a.   Accounts receivable (total net of allowance)

b.  Accounts receivable over 90 days outstanding (net of allowance)

c.   Inventory ( Book  Market  Other  (attach explanation))

d   Total current assets

e.   Total assets

f.   Postpetition payables (excluding taxes)

g.  Postpetition payables past due (excluding taxes)

h.  Postpetition taxes payable

i.   Postpetition taxes past due

j.   Total postpetition debt (f+h)

k.  Prepetition secured debt

l.   Prepetition priority debt

m.   Prepetition unsecured debt

n.  Total liabilities (debt) (j+k+l+m)

o.  Ending equity/net worth (e-n)

Part 3: Assets Sold or Transferred

a.   Total cash sales price for assets sold/transferred outside the ordinary course of business

b.  Total payments to third parties incident to assets being sold/transferred outside the ordinary course of business

c.   Net cash proceeds from assets sold/transferred outside the ordinary course of business (a-b)

Part 4: Income Statement (Statement of Operations)

(Not generally applicable to Individual Debtors. See Instructions.)

a.   Gross income/sales (net of returns and allowances)

b.  Cost of goods sold (inclusive of depreciation, if applicable)

c.   Gross profit (a-b)

d.  Selling expenses

e.   General and administrative expenses

f.   Other expenses

g.  Depreciation and/or amortization (not included in 4b)

h.  Interest

i.   Taxes (local, state, and federal)

j.   Reorganization items

k.  Profit (loss)

Part 5: Professional Fees and Expenses

Approved 

Current Month 

Approved 

Cumulative 

Paid Current 

Month 

Paid 

Cumulative 

Part 6: Postpetition Taxes

a.   Postpetition income taxes accrued (local, state, and federal)

b.  Postpetition income taxes paid (local, state, and federal)

c.   Postpetition employer payroll taxes accrued

d.  Postpetition employer payroll taxes paid

e.   Postpetition property taxes paid

f.   Postpetition other taxes accrued (local, state, and federal)

g.  Postpetition other taxes paid (local, state, and federal)

Part 7: Questionnaire - During this reporting period:

a.   Were any payments made on prepetition debt? (if yes, see Instructions)

b.  Were any payments made outside the ordinary course of business without court approval? (if yes, see Instructions)

c.   Were any payments made to or on behalf of insiders?

d.  Are you current on postpetition tax return filings?

e.   Are you current on postpetition estimated tax payments?

f.   Were all trust fund taxes remitted on a current basis?

g.  Was there any postpetition borrowing, other than trade credit? (if yes, see Instructions)

h.  Were all payments made to or on behalf of professionals approved by the court?

i.   Do you have:

If yes, are your premiums current?

If yes, are your premiums current?

If yes, are your premiums current?

j.   Has a plan of reorganization been filed with the court?

k.  Has a disclosure statement been filed with the court?

l.   Are you current with quarterly U.S. Trustee fees as set forth under 28 U.S.C. § 1930?

Part 8: Individual Chapter 11 Debtors (Only)

a.   Gross income (receipts) from salary and wages

b.  Gross income (receipts) from self-employment

c.   Gross income from all other sources

d.  Total income in the reporting period (a+b+c)

e.   Payroll deductions

f.   Self-employment related expenses

g.  Living expenses

h.  All other expenses

i.   Total expenses in the reporting period (e+f+g+h)

j.   Difference between total income and total expenses (d-i)

k.  List the total amount of all postpetition debts that are past due

l.   Are you required to pay any Domestic Support Obligations as defined by 11 U.S.C § 101(14A)?

m.   If yes, have you made all Domestic Support Obligation payments?

Basis of Presentation. The Debtors are filing their MOR solely for purposes of complying with the monthly operating requirements applicable in the Debtors' Chapter 11 Cases. The MOR is in a format acceptable to the U.S. Trustee. The MOR should not be relied upon by any persons for information relating to current or future financial condition, events, or performance of any of the Debtors or their affiliates, as 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 combined results of operations, financial position, and schedule of receipts and disbursements in the future.

Reporting Period. Unless otherwise noted herein, the MOR generally reflects the Debtors' books and records and financial activity occurring during the applicable reporting period. For the reporting period ended May 31, 2024, the Debtors' books and records reflect activity from May 1, 2024 through the period end date. Except as otherwise noted, no adjustments have been made for activity occurring after the close of the reporting period.

Consolidated Entity Accounts Payable and Disbursement Systems. Cash is received and disbursed by the Debtors in a manner consistent with the Debtors' historical cash management practices, as described in the Debtors' Motion for Entry of Interim and Final Orders Authorizing the Debtors to (A) Continue to Operate Their Cash Management System, (B) Honor Certain Prepetition Obligations Related Thereto, (C) Maintain Existing Business Forms, and (D) Continue to Perform Intercompany Transactions (Docket No. 10).

Accuracy. The financial information disclosed herein was not prepared 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. Persons and entities trading in or otherwise purchasing, selling, or transferring the claims against or equity interests in the Debtors should evaluate this financial information in light of the purposes for which it was prepared. The Debtors and their advisors are not liable for and undertake no responsibility to indicate variations from securities laws herein or for any evaluations of the Debtors based on this financial information or any other information.

Payment of Prepetition Claims Pursuant to First Day Orders. On February 16, 2024, the Bankruptcy Court entered orders (the "First Day Orders") authorizing, but not directing, the Debtors to pay, on an interim basis, certain prepetition (a) employee wages, salaries, other compensation, reimbursable expenses and payments to continue employee benefit programs; (b) claims of lien claimants, import claimants, 503(B)(9) claimants, foreign vendors, and critical vendors; (c) taxes and fees; and (d) amounts to maintain and administer existing customer programs and honor certain prepetition obligations related thereto. The Bankruptcy Court subsequently approved the relief requested in connection with the First Day Orders on a final basis. To the extent any payments were made on account of prepetition claims following the commencement of these Chapter 11 Cases pursuant to the authority granted to the Debtors by the Bankruptcy Court under the First Day Orders, such payments have been included in the MOR.

Reservation of Rights. The Debtors reserve all rights to amend or supplement the MOR in all respects, as may be necessary or appropriate. Nothing contained in this MOR shall constitute a waiver of any of the Debtors' rights or an admission with respect to their Chapter 11 Cases.

Specific MOR Disclosures.

Figures include cash as reported in the Debtors' bank statements. Reconciliation differences will exist between bank statement balances and balance sheet cash balances due to ordinary course timing differences between payment execution in the Debtors' financial system and disbursement of funds from Debtor bank accounts, as well as outstanding checks and deposits in transit.

The Debtors' standard practice is to ensure that bank reconciliations are completed before closing the books each reporting period. The Debtors have submitted an attestation with these MORs that each of the Debtors' bank accounts has been reconciled in accordance with their standard practices.

Item (b): The amount of Total Receipts corresponds to the sum of total Test/Collaboration Receipts and other one-time receipts. The Debtors' Cash Rollforward excludes $9,776,444.32 of restricted cash posted for letters of credit and deposits posted to third parties. This restricted cash is detailed in the supplemental schedule of Debtor bank accounts.

All intercompany transactions are between the Debtor Invitae Corporation and non-Debtor foreign affiliates, which are reflected on the Debtors' consolidated balance sheet and income statement.

The MORs have not been subject to certain quarterly or annual adjustment procedures, including income tax provision procedures. The information presented herein may materially differ if such procedures were applied. Aged Accounts Payable amounts relate to potential post-petition obligations of invoices received by the Debtors prepetition. The Debtors continue to analyze whether or not these invoices are in fact administrative expenses of the bankruptcy estate, and reserve all rights to reclassify these amounts as liabilities not subject to compromise.

Because the Debtors' existing recording systems were not designed to distinguish between other prepetition and postpetition liabilities, the Debtors have commenced a process to distinguish between prepetition and postpetition liabilities, the results of which are reflected in the MORs. As the Debtors continue this process and additional information becomes available, the allocation of liabilities between prepetition and postpetition periods may change.

Items (k-m): Prepetition liabilities (i.e., items (k), (l), and (m)) reflect liabilities included in "Liabilities subject to compromise" on the Debtors' balance sheet as well as other prepetition liabilities that may be uncompromised pursuant to the relief granted via the First Day Orders. The Debtors' inclusion or exclusion of any amounts in the presentation of "Liabilities subject to compromise" in the Balance Sheet is done

A portion of prepetition accrued employee bonuses may be considered priority under Section 507(a)(4) of the Bankruptcy Code; however, since the Debtors have paid out these amounts subject to the relief under the final wages order (after the reporting date for these MORs), the Debtors have not specifically allocated prepetition employee accrued liabilities between priority and unsecured buckets.

Values in the Balance Sheet attached hereto represent rounded numbers. Accordingly, subtotals may not agree to the summation of the rounded numbers presented.

The MORs have not been subject to certain quarterly or annual adjustment procedures, including income tax provision procedures. The information presented herein may materially differ if such procedures were applied.

Because the Debtors' existing recording systems were not designed to distinguish between prepetition and postpetition income statement line items, the Debtors have commenced a process to distinguish between prepetition and postpetition, the results of which are reflected in the MORs.

Because the Debtors' existing recording systems were not designed to distinguish between other prepetition and postpetition liabilities, the Debtors have commenced a process to distinguish between prepetition and postpetition liabilities, the results of which are reflected in the MORs.

Item (a): Following the Petition Date, the Court entered various orders authorizing, but not directing, the Debtors to, among other things, pay certain prepetition: (i) service fees and charges assessed by the Debtors' banks; (ii) customer programs obligations; (iii) employee wages, salaries, and related items (including, but not limited to, employee benefit programs and supplemental workforce obligations); (iv) taxes and assessments; and (v) critical vendor, 503(b)(9), lien, and foreign vendor obligations (collectively, the "First Day Orders"). To the extent any payments were made during the Reporting Period on account of prepetition claims pursuant to the authority granted to the Debtors by the Court under the First Day Orders, such payments have been included in this MOR (subject to the notes and statements and limitations provided herein).

Item (c): Payments to insiders include ordinary course salaries, benefits, and expense reimbursements for officers and employees, as well as fees and expense reimbursements paid to members of the Board of Directors

Cash Receipts

Test/Collaboration Receipts

Other Receipts

Total Cash Receipts⁽²⁾

Operating Disbursements

Payroll, Bonus & Benefits

Lab Materials

Collection Kits

Shipping

Real Property Lease Payments

Other Lease Obligations

IT-Related Expenses

Cash Taxes

Other AP Payments

Total Operating Disbursements

Operating Cash Flow

Restructuring Related / One-Time

Debt Service

Finance Lease Principal

Capex

Severance

Retention

Professional Fees

Other One-Time

Total Restructuring Related / One-Time

Total Disbursements

Net Cash Flow

Cash Roll Forward ⁽³⁾

Beginning Cash Balance

Net Cash Flow

Cash Interest

Ending Cash Balance ⁽⁴⁾

All information contained herein is unaudited and subject to future adjustment.

The amount of Total Receipts presented in MOR Part 1(b) corresponds to the sum of total Test/Collaboration Receipts + other one-time receipts.

Excludes $9.8M of restricted cash posted for letters of credit and deposits posted to third parties.

The ending cash balance represents ending bank cash and differs from ending book cash due to $0.2M of outstanding checks.

ASSETS

CURRENT ASSETS

Cash & Cash Equivalents

Accounts Receivable