Case 15-11663-LSS Doc 355 Filed 03/02/16 Page 1 of 12Cash Flow before Debt Repayment and Transfers $ 101,456 S - S - $ - $ 101,456 Transfer to Other Debtor Account (15 204) - (15,204)

CJM"I'FD S7'ATF.S I3AhK1~(7T'TCY C01URTI+OR TfiE DISTRICT OF DELAWARE

In rc: Response Genetics, Inc. Case Na.: 15.11663 (I.SS)Reporting Period: January i to January 31, 201b

MONTHI.Y OPERATItiG REYQRTFile with Court rnd submit copy to United States Trustco within 20 d»ys after end pP month.

Submit copy of report to any official c~mmittne appointed in the case.

i.?oevn~nt ~~rJstuatinn <1PP#d~~ft~~ppl~mexit42~rlitiEtkr3na"]f•~rif#iii`r~ - F~nr~,~~4n. ,'4tca~k2c+tf ritf~clte~ ~ttas~f:d

Schedule of Cash Recai is and Disbursements MOR-i X ~ T T

F3ank Reconciliation {or co ies of debiar's bank recanciladons) MC)R-la X

Schedule of Professional Fees Paid MOR-Ib X

Co ies ~f bank statements XCash disbursements 'ournals X

Statement of O eraaans MOR-2 X

13alancc Sheet MUR-3 X

~Stah~s of Post etition Taxes MOR-4 X

Ca ies of TT25 Form 6123 ox a meat recei t

Lo ics of tax returns filed Burin re ortin eriodSummer cif Un flid Yosf etition Ilc6ts MOI2-A X

Listin aP t~ ed accounts a ublc MUR-4 X

Accounts Receivable Reconciliation and A in MOR-5 X

Debtor Questionnaire MOR-S X

I declare under penalty of perjury (2& U.S.C. Section 1746) that this report and the attached documents

are true and correct to the hest of my knowledge and belief,

Signature of Debtor

Signature cif Joint I~ebtar

/~

S' Authorized ! ' ' ual~

Benjamin J. Mate

Printed Name of Autharired individual

Date

Date

3/l/201bU1t0

Title of Authorized Tndividuai

* Authurired individual must be nn iafficer, dlrestor ar shurehalder if debtor is a carparatipn; a partner if debtoris a p.~nnership; n m~nagcr or member if dcbior is ~~ limited liability comj~any,

Mt7R(U4lg7)

Case 15-11663-LSS Doc 355 Filed 03/02/16 Page 1 of 12

In re: Response Genetics, Inc. Case No.: 15-11663 (LSS)

Reporting Period: January 1 to January 31, 2016

GENERAL NOTES Ai~tD DISCL~IIA~IER TO 14IOPTTHLY OPERATING REPORT

The financial statements and supplemental information contained herein are unaudited, preliminary, and may not comply with generallyaccepted accounting principles ("GAAP") in all material respects. In addition, the financial statements and supplemental informationcontained herein is provided to fulfill the requirements of the Office of the United States Trustee and have been derived fro m the books andrecords of the Debtor.

The results of operations contained herein are not necessarily indicative of results that are expected from any other period or for the full yearand are not reflective of the results of operations, financial position, and cash flow of the Debtor in the future (and as more fully describedbelow).

An Order (AJ Approving Sale of Substantially A!! of the Deb[or's Assets, and (&) Approving the Assumption and Assignment of CertainExecutory ConU~acts and Unexpired Leases was entered into on October 1, 2015 approving the sale of assets to Cancer Genetics, [nc. (the"Sale"). The closing of the Sale occurred on or about October 9, 2015.

At the closing of the Sale, the Debtor transferred substantially all of its assets and certain liabilities to Cancer Genetics, Inc. ("CGI" or the"Buyer"), which also assumes the Debtor's operations as marketer and provider of molecular profiling services of tumor tissues (the "BusinessOperations"). The Debtor has, since the closing of the Sale, been working to resolve remaining claims of the Debtor's estate, monetizing thereceivables retained, and pursuing an orderly wind down of the affairs of the Estate.

Notes to MOR-1In lieu of bank reconciliations, bank and book balances are provided.

Notes to MOR-2

The Debtor's Statement of Operations contain material estimates that are subjected to ongoing review and analysis. The Debtor will

amend, if necessary, upon the completion of this review and analysis.

Notes to MOR-3The Debtor's Balance Sheet contain significant estimates that are subjected to ongoing review and analyses by the Buyer and the Debtor's

professionals. Included in the balances are adjustments the Debtor recorded in respect of gains and losses related to the Sale and the

dissolution of the Debtor's unconsolidated foreign subsidiary.

Notes to MOR-4Pursuant to the terms of the Sale, the Buyer assumed certain liabilities, including substantially all of the amounts related to the Business

Operations. The outstanding accounts payable balance as of January 31, 2016 consisted mostly of expenses incurred in connection with

the Estate's administrative activities.

Notes to MOR-SThe Debtor retained certain accounts receivable in the Sale. Therefore, the Debtor has retained services of certain professionals to collect

these accounts receivable for the benefit of the Estate's creditors.

MOR(04/07)


In re: Response Genetics, Inc.Debtor

Case No. 15- 11663 (LSS)Reporting Period: January I to January 31, 2016

MOR-1Receipts &Disbursements Report

Acct ~o. X\'X0143 Ac:t No. XX\0177 Acet No. XXXU~J I9 Acct No. \X713066

Be i~ nninp Book Cash

Opening Book Balance $ 886,876 $ - $ - S 6,000 $ 892,876

Receipts

ReceiplcCollection on Receivables $ 131,672 $ - $ S - $ 131,672

Receipts -Transferred from Other Debtor Acc - 15,204 $ 15,204

Tofal Receipts and Adjustments $ 131,672 $ - $ 15,204 $ - $ 146,875

Disbursements

Payroll and Related $ (398) - (15,204) - (15,602)

SG&A (3.199) - - (3.199)

Bank Charge (330) - - - (330)

Other

Total Operating Disbursements (3,927) - (15,204) - (19,131)

Noiv-Ope~•ating Disharremenls

Bankruptcy Related Professional Fees (26,289) - - - ~Z6,289)

US Trustee

Total Non-Operating Disbursements (26,289) - - (26,289)

Cash Flow before Debt Repayment and Transfers $ 101,456 S - S - $ - $ 101,456

Transfer to Other Debtor Account (15 204) - (15,204)

Net Cash Flow 86,252 - - - 86,252

Closing Book Balance $ 973,128 $ - $ - $ 6,000 $ 979,128

Outstanding Checks I2 745 12,745

Ending Cash Balance (Bank) $ 985 873 $ - $ - $ 6 000 $ 991 873

Total OperatingDisbursemen~s (3,927) - (15,204) - (19,131)

Non-Operating Disbursements (26,289) - - - (26,289)

Intercompany Transfers (15 204) 15,204

Total Disbimsements $ (45,420) $ $ $ - $ (45,420)

MOR(04/07)


In re: Response Genetics, Inc. Case No. 15-11663 (LSS)

Debtor Reporting Period: Januazy 1 to January 31, 2016

MOR - 1 Continuation SheetSchedule of Bank Account Balances

Entity Bank Account Number Name/Type Book Balance Bank Balance

Response Genetics, Inc. Silicon Valley Bank Acct No. XXXOIA3 Operating Acct. $ 973,128 $ 985,873

Response Genetics, Ina Silicon Valley Bank Acct No. XXXoi77 Payroll Acct. - 0

Response Genetics, Inc. Silicon Valley Bank Acct No. XXX0919 Flex Spending Acct.

Response Genetics, Inc. Silicon Valley Bank AccWo. XXX3o66 Depository Acct. 6,000 6,000

$ 979,128 $ 991,873

Schedule of Disbursements

Current Month CumulativeDisbursements by Disbursements for

Case # Debtor's Name Entity Ist QTR 2016

15-11663 (LSS) Response Genetics, Inc. QS,g20 $ 8,984,824

MOR~oam~~


~~~ re: ~2esponscs (renc9ics, Tnc.

f~cl~tc~r

C`,hapte.r

C~~sc I~IU,; iS~l I(~63 (1.SS)

Mt~R - ~ 6:ontirzuatio~i Shect

IDecl~~rati~»~ Regarding Ehe Cash I)isburserr~ez~t Sc:l~eciiktc

~c>r period .Iantiary 1 to January 31, 2iDlh

13en.jarnin J. M~Uz hereby clecl~u-es under j~cnalty oi' perjury:

. { am Chc Chief Restructuring Officer fior Response C7enetic5, Tne.> the above-captioned debtor raid debtor-in.

possetisic~i~ (the "Uehtor"),

2. The Debtor sut~mits this l~~claration reg~trdin~; cash disbursements i~~ lieu cif' prc~vidin~; c~opi+:s of the: rash

di~hursement scheclulc.

3. AU st~ltem~nts in the S)eclaration 4u~~ ba~sccl on my p~rs~ntil knowfcdge, nay review ~al'thc~ rcl~v~~nt

documents, or my discussions with Iaebtor'ti e~l~ployccs. 1 any ~iucharizec~ to submit (his Iaccl<U~tltO11 011 L1Ullalf

of~ the. t7ebtor.

~4. The Debtor has, on a timely Uasis, disbursed appraximatcly $45,420 f'or ~~otit-petition and allowable pre-

pet~ition amounts foi• the period Junu~uy 1, 2010 to January 31, 2O16. C'opie~; of'the cash disbursem^nt

scheclule~ arc available ('or• i~ispectic~n upon request by the ()ff ice of~ the United States Trustee.

t)ated: 3/.1/20) G. E3ct~,jii1111(1 .T. M~tkz, C:hi~i' RcsU•ucturiug Officer

MUR(U•7107!


Td~ rc: ~iespo~rosc ~it.11C~-ICS, inc. Chapter i

Uel,tc>r• C;use Nn.: 1 S- I I6b;3 (1rSS

MOR - la

~)cci~eration Regarding the Bunk ~teconciliutio~is

~'~>r period 3~~,~t~7ry 1 to .Tanttary 31, 2tD1(i

£3enjamin J. Matz hcrclay cleclures under penalty of i~crjury:

I. I am the Chief 12estructurii~g (afficcr for Response Genetics, Tnc., the; above-captioned cicbt<~r <<ncl dehtc~r-in-

possessic7n (ttie "ll~htor"). Tam familiar witf~~ the Debtor's day-to-day oT~er~ttiotts, business af'fair~ ~utd hooks

and records,

2. All st~~itcmcilts in the ~eclarakion sire based on my per5onal knowled~;c, niy review cif the rcicv~ult

documents, car my discu~sians with I>~btoi's cm~~loyec;s. I am ~tuthorircci to submit this I~cclar~~tic~n on bchafl~

of the I.?~ht~ar.

3, Tv fh~: licst of my ki~c~wled~*c:, all of the Iaehtor's hunk balances sire reconciled in Dui acc~n~at~. <tnc! ti+nely

munnc.r.

I:)ated: _ 3/1!?{)16 ~3cnjumin J. Matz, Chicl'Rcstructurin~ 01~!'iccr

t ._ - ~ti.

n4c>I.f0 tlr)7)


In re: Response Genetics, Inc.

Debtor

Case No. 15-11663 (L,SS)

Reporting Period: January 1 to January 31, 2016

MOR - lb

SCHEDULE OF PROFESSIOI~tAL FEES AND EXPENSES PAID

This schedule is to include all retained professional payments from case inception to current month.

Amount Paid This Cumulative AmountPeriod Paid

Professionals Fees and Expenses Fees and Expenses

Canaccard Genunity [a] $ - $ 579,065

Chipman Brown Cicero &Cole, LLA - 11,092

Conway MacKenzie [a] 16,289 369,272

Epiq Bankruptcy Solutions, LLC [a] - 19,998

D. Gottlieb &Associates LLC 10,000 10,000

Holland &Knight - 200,005

Levy, Small & Lallas - 38,908

Pachulski Stang Ziehl &Jones LLP [a] - 650,000

Rust Omni Group [a] - 23>000

Sheppard, Mullins, Richter &Hampton LLP [a] - 175,000

$ 26,289 $ 2,076,340

Note:

[a] Pursuant to a Court order authorizing the Debtor to obtain post-petition financing and authorizing the use of cash collateral [Docket No,

26], the Debtor transferred funds to a Pachulski Stang Ziehl &Jones Client Trust Account, on a weekly basis, the amount that the

professionals may be paid pursuant to a budget agreed to with the post-petition financing lender for such week. Such funds are being held

for the benefit of the professionals and applied to the fees and expenses of such professionals pursuant to one or more order s of the Court.

The amounts shown reflect portions of the transferred funds attributed to the respective professionals .

MOR(04/07)


In re: Response Genetics, Inc. Case No. 15-11663 (LSS)

Debtor Reporting Period: January 1 to January 31, 2016

MOR - 2STATEMENT OF OPERATIONS [a]

For the Period January 1 to January 31, 2016

Operating expensesGeneral and administrative $ 18>985

Total operating expenses 18,985

Operating loss (18,985)

Other income (expenses)Reorganization expenses (26,947)

Other

Net income / (loss) $ (45,932)

Note:[a] As detailed in the General Notes, the Debtor closed an asset sale transaction with Cancer Genetics, Inc. in October 2015. The Debtor

is in the process of finalizing the amount of gains or losses to be recognized in the sale, including amounts of income from

cancellation of indebtedness; the currently reported results are subject to material adjustments.

MOR~oaio~>


In re: Response Genetics, Inc. Case No. 15-t 1663 (LSS)Debtor Reporting Period: January I to January 31, 2016

MOR - 3

BALANCE SHEET [a)

As of January 3l, 2016

ASSETS

Current assets

Cash and cash equivalents $ 979,128

Accounts receivable, net 1,029,137

Total current assets 2,008,266

Other assets

Total assets $ 2,008,266

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities

Accounts payable $ 26,801

Accrued expenses 12,350

Total current liabilities 39,151

Liabilities subject to compromise

Accounts payable 2,216,471

Total liabilities subject to compromise 2,216,471

Total liabilities $ 2,255,622

Stockholders' deficit:

Common stock $ 388,010

Additional paid-in capital 78,678,425

Accumulated deficit (79,313,791)

Total stockholders' deficit $ (247,356)

Total liabilities and stockholders' deficit $ 2,008,266

Note:[a] Pursuant to the Sale, as more fully described in the General Notes, certain assets and liabilities have been sold to and assumed by the Buyer.

However, tha Debtor and the Buyer are continuing to reconcile these assets and liabilities amounts and will adjust accordingly.

MOR

(04/07)


In re: Response Genetics, Inc. Case No. 15-11663 (I.SS)

Debtor Reporting Period: January 1 to January 31, 20]6

MOR - 4

SUMMARY OF UNPAID POSTPETITIOIV DEBTS

Amount

Current $ 26,801

Past Due 1-30 -

Past Due 31-60 -

Past Due 61-90

Past Due Over 90 -

Total Gross Accounts Payable $ 26,801

MOR(04/07)


In rc: Etcsponsc Genetics, Inc. Chapter I 1

t7ebtor C~~sc Nc>.: 15~ 1 ! f~b3 (LSS)

]ViOlt - Q

L7eclaration ~te~~rding Status of i'ostpetitian 'faxes

~'~x• the I'~r►od ,~amiary 1 to ,~anuary 3t, 2016

Benjt~i7iin 1, Matz hc;reby declares under pcn~~lry of perjury:

. I am tha C'hie:f Rc:stri=eti.tring (.)fficer 1'or 12espantic Ge»etics, Inc., the+ abcave-captiancd clebfor and debtor•

in-possa5sic~n ([he "Taebtor"). I am familiar with the I)cbtor's day-to-day oper~itions, business ~~f'f'<~irs ~md

looks and records.

2. All state~~icnts in (he I?ec.larution tine baseG9 on my p~rsanal knowled~~;, tliy 7~c:vicw ~~f' the rel~.vunt

dactmicnts, or my discussions wish l~et~tor's employees. I tun tu~th~~rized tc> submit this Declar~ition on behalf

of the l~cblor.

3, To the best ~f my I~n~wl~d~e, the I~cbtor has filed all necessary federal, st~tl_e ~u1d local tax returns .and

m~icic all rrquired post-p~~titian tax pGiyments in connection thez~ecvith on ~a timely basis or i~~ive promptly

reincdied any lute Piling car payments that may have occui~recl clue tc> t.~t~intcntioi~al oversight.

L)~~tc.d: 3/I/2~16._-- .. }3e~njamitl 7. Mtt[z, Chief ~estruGturing Officer

~ic)K~ u~t/U'7 i


In re: Response Genetics, Inc. Case No, 15-11663 (LSS)

Debtor Reporting Period: January 1 to January 31, 2016

MOR-5ACCQUNTS RECEIVABLE AGING

n~;..~r,t~ se.~R Amonat

Current N $

1 - 30 da s ast due31-60 da s ast due61-90 da s ast due 392,591

Over 90 da s ast due Q,140,338

Total Gross Accounts Receivable

Less: allowance for doubtful accounts, reserves, and returns

$ 4,532,9283,503,791)

Accounts Receivable (Net) $ 1,029,137

DEBTOR QUESTIONNAIRE

1 j Have any assets been sold or transferred outside the normal course of business X

this reporting period? If yes, provide an explanation below.

2. Have any fiords been disbursed from any accomu other than a debror in possession X

account this reporting period? If yes, provide an explanation below.

3. Have all postpetition tax returns been timely filed? If no, provide an e~cplanation X

below.

4. Are workers compensation, general liability and other necessary insurance X

coverages in effect? If no, provide an explanation below.

5. Has any bank account been opened during the reporting period? Ifyes, provide

docmnentation identifying the opened account(s). If an imeshnent account has been opened X

provide the required docwnentation pursuant ro [he Delaware Local Rule 4001-3.

MOR(04/07)


IN THE UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

Chapter 11In re:

Case Na. 15-11663 (LSS)RESPONSE GENETICS, INC., I

Debtor.

AFFIDAVIT OF SERVICE

STATE OF DELAWARE )ss:

COUNTY OF NEW CASTLE )

Kathleen Forte Finlayson, being duly sworn according to law, deposes and says that she

is employed by the law firm of Pachulski Stang Ziehl &Jones LLP attorneys for the Debtor in

the above-captioned action, and that on the 2°d day of March 2016 she caused a copy of the

following documents) to be served upon the parties on the attached service lists in the manner

indicated:

Monthly Operating Report for Response Genetics, Inc. for January 2016

' G(~LTeen Forte Finlay o

Sworn *o anc~. Subscribed beforehe ~ i~ _'~ ` day of March 2016

r~`~~,_,o.K A JOHiJ BOWER

Mary ~tiiuii~ ; PUBLIC

Commissic~~i Exp.: STATE OF DELAWAREy ommission pires October 14, 2016

DOCS DE:205545.1 73845/002

~ The last four digits of the Debtor's tax identification number are: (5548). The location of theDebtor's headquarters and service address is 1640 Marengo St., 7th Floor, Los Angeles, CA 90033.

Case 15-11663-LSS Doc 355-1 Filed 03/02/16 Page 1 of 3

Response Genetics Core&Fee App Service ListCase No. 15-11663 (LSS)Document No. 2045952 —Interoffice Mail4 —Hand Delivery4 —First Class Mail

(Counsel to the Debtor)James E. O'Neill, EsquirePachulski Stang Ziehl &Janes LLP919 N. Market Street, 17th FloorWilmington, DE 19801

INTEROFFICE MAIL(Counsel to the Debtor)Jeffrey N. Pomerantz, EsquireIra D. Kharasch, EsquirePachulski Stang Ziehl &Jones LLP10100 Santa Monica Boulevard, 13th FloorLos Angeles, CA 90067

INTEROFFICE MAIL(Counsel to the Debtor)John W. Lucas, EsquirePachulski Stang Ziehl &Jones LLP150 California Street, 15th FloorSan Francisco, CA 94111

HAND DELIVERY(United States Trustee)Linda Casey, EsquireOffice of the United States TrusteeJ. Caleb Boggs Federal Building, Suite 2207844 King StreetLockbox 35Wilmington, DE 19801

HAND DELIVE~tY(Counsel to Silicon Valley Bank ("SVB'))William E. Chipman, Jr, EsquireChipman Brown Cicero &Cale, LLP1313 N. Market Street, Fifth FloorWilmington, DE 19801

HAND DELI i~ERY(Counsel to the Official Committee ofUnsecured Creditors)Frederick B. Rosner, EsquireJulia B. Klein, EsquireThe Rosner Law Group LLC824 Market Street, Suite 810Wilmington, DE 19801

HAND DELIVERY(Counsel to SWK Funding LLC)Neil B. Glassman, EsquireScott D. Cousins, EsquireEvan T. Miller, EsquireBayard, P.A.222 Delaware Avenue, Suite 900Wilmington, DE 19801

FIRST CLASS MAfL(CoZtnsel to the Official Committee ofUnsecured Creditors)Carren B. Shulman, EsquireSheppard, Mullin, Richter &Hampton LLP30 Rockefeller PlazaNew York, NY 10112

FIRST CLASS MAIL(Counsel to the Official Committee ofUnsecured Creditors)Ori Katz, EsquireSheppard, Mullin, Richter &Hampton LLPFour Embarcadero CenterSeventeenth FloorSan Francisco, CA 941 I 1

FIRST CLASS MAIL(Counsel to Silicon Valley Bank ("SVB'))Leo D. Plotkin, EsquireLevy, Small & Lallas81 S Moraga DriveLos Angeles, CA 90049


FIRST CLASS MAIL(Counsel to SWK Funding LLC)Robert W. Jones, EsquireBrian J. Smith, EsquireHolland &Knight200 Crescent Court, Suite 1600Dallas, TX 75201


Documents

Case 15-11663-LSS Doc 355 Filed 03/02/16 Page 1 of 12Cash Flow before Debt Repayment and Transfers $ 101,456 S - S - $ - $ 101,456 Transfer to Other Debtor Account (15 204) - (15,204)