EX-99.01 4 ex9901form8k041103.txt MID-POWER SERVICE CORP CH. 11 MONTHLY REPORT Exhibit 99.01
UNITED STATES BANKRUPTCY COURT DISTRICT OF NEVADA In re: Mid-Power Service Corporation Case No. BK-S-03-10874-RCJ CHAPTER 11 MONTHLY OPERATING REPORT (GENERAL BUSINESS CASE) ------------------------------------------------------------------------------------------------------------------------------------ SUMMARY OF FINANCIAL STATUS MONTH ENDED: 2/28/2003 PETITION DATE: 01/24/03 1. Debtor in possession (or trustee) hereby submits this Monthly Operating Report on the Accrual Basis of accounting (or if checked here [ ] the Office of the U.S. Trustee or the Court has approved the Cash Basis of Accounting for the Debtor). Dollars reported in$1 2. Asset and Liability Structure End of Current Month End of Prior Month As of Petition Filing a. Current Assets $49,724 N/A b. Total Assets $47,918,599 N/A $47,925,781 c. Current Liabilities $236,768 N/A 13,052.92 d. Total Liabilities $24,772,272 N/A $24,545,123 Cumulative 3. Statement of Cash Receipts & Disbursements for Month Current Month Prior Month (Case to Date) a. Total Receipts $93,139 N/A $93,139 b. Total Disbursements $110,746 N/A $110,746 c. Excess (Deficiency) of Receipts Over Disbursements (a-b) ($17,607) N/A ($17,607) d. Cash Balance Beginning of Month $21,963 N/A $21,963 e. Cash Balance End of Month (c + d) $4,356 N/A $4,356 Cumulative Current Month Prior Month (Case to Date) 4. Profit/(Loss) from the Statement of Operations ($234,331) N/A ($234,331) 5. Account Receivables (Pre and Post Petition) $0 N/A 6. Post-Petition Liabilities $8,726,768 N/A 7. Past Due Post-Petition Account Payables (over 30 days) $0 N/A At the end of this reporting month: Yes No 8. Have any payments been made on pre-petition debt, other than payments in the normal X course to secured creditors or lessors? (if yes, attach listing including date of payment, amount of payment and name of payee) 9. Have any payments been made to professionals? (if yes, attach listing including date of X payment, amount of payment and name of payee) 10. If the answer is yes to 8 or 9, were all such payments approved by the court? X 11. Have any payments been made to officers, insiders, shareholders, relatives? (if yes, X attach listing including date of payment, amount and reason for payment, and name of payee) 12. Is the estate insured for replacement cost of assets and for general liability? X 13. Are a plan and disclosure statement on file? X 14. Was there any post-petition borrowing during this reporting period? X 15. Check if paid: Post-petition taxes; [X] U.S. Trustee Quarterly Check if filing is current for: Post-petition [ ] tax reporting and tax returns: [X]. (Attach explanation, if post-petition taxes or U.S. Trustee Quarterly Fees are not paid current or if post-petition tax reporting and tax return filings are not current.) * Mid-Power Service is unable to estimate the market value of its investment in Mid-Power Resource Corporation at this time and therefore has shown this investment at cost. Mid-Power Resource Corporation is engaged in litigation with Edward Mike Davis, former owner of the principal assets held by the company. Total assets include $43.5 million also included in Mid-Power Resource Corporation. I declare under penalty of perjury I have reviewed the above summary and attached financial statements, and after making reasonable inquiry believe these documents are correct. Date: April 11, 2003 /s/ James W. Scott ----------------------------- Responsible Individual STATEMENT OF OPERATIONS (General Business Case) For the Period January 24 (bankruptcy filing) - February 28, 2003 Current Month --------------------------------------------- Cumulative Next Month Actual Forecast (Case to Date) Forecast ------ -------- -------------- -------- Revenues: $0 - 1 Gross Sales - - - - 2 less: Sales Returns & Allowances - - - - 3 Net Sales - - - 4 less: Cost of Goods Sold (Schedule 'B') - - - 5 Gross Profit - - 6 - 6 Interest 6 - - - 7 Other Income: - - - - 8 _________________________ - - - - 9 _________________________ - - 6 - 10 Total Revenues 6 - Expenses: - - 11 Compensation to Owner(s)/Officer(s) - - 20,052 - 0% 12 Salaries 20,052 17,383 - - 0% 13 Commissions - - 27,002 - 0% 14 Contract Labor 27,002 11,320 310 - 0% 15 Rent/Lease: 310 310 Personal Property 3,578 - 0% 16 Real Property 3,578 3,338 2,311 - 0% 17 Insurance 2,311 2,758 - - 0% 18 Management Fees - - - - 0% 19 Depreciation - - 1,866 - 0% 20 Taxes: 1,866 1,866 Employer Payroll Taxes - - 0% 21 Real Property Taxes - - - - 0% 22 Other Taxes - - - - 0% 23 Other Selling - - 8,673 - 0% 24 Other Administrative 8,673 5,272 - - 0% 25 Interest - - 0% 26 Other Expenses: 1,200 - 0% 27 Patent License Fees 1,200 1,200 76,088 - 0% 28 Product Development 76,088 59,000 335 - 0% 29 Auditors 335 7,950 6,128 - 0% 30 Travel 6,128 3,294 919 - 0% 31 U.S. Stock Transfer Group 919 800 12,668 - 0% 32 SEC attorney 12,668 - 0% 33 _____________________________ 0% 34 _____________________________ 161,131 - 35 Total Expenses 161,130 114,491 (161,125) - 36 Subtotal (161,124) (114,491) (73,206) - 37 Reorganization Items: (73,206) (80,000) Professional Fees 38 Provisions for Rejected Executory Contracts 39 Interest Earned on Accumulated Cash from Resulting Chp 11 Case 40 Gain or (Loss) from Sale of Equipment - 41 U.S. Trustee Quarterly Fees - 42 (73,206) - 43 Total Reorganization Items (73,206) (80,000) (234,331) - 44 Net Profit (Loss) Before Federal & State Taxes (234,330) (194,491) 45 Federal & State Income Taxes ($234,331) $0 46 Net Profit (Loss) ($234,330) ($194,491) Attach an Explanation of Variance to Statement of Operations (For variances greater than +/- 10% only): BALANCE SHEET (General Business Case) For the Month Ended 2/28/2003 Assets From Schedules Market Value -------------- ------------ Current Assets 1 Cash and cash equivalents - unrestricted $4,356 2 Cash and cash equivalents - restricted $0 3 Accounts receivable (net) A $0 4 Inventory B $0 5 Prepaid expenses $10,368 6 Professional retainers $35,000 7 Other: $0 8 9 Total Current Assets $49,724 Property and Equipment (Market Value) 10 Real property C $0 11 Machinery and equipment D $1,032,628 12 Furniture and fixtures D $0 13 Office equipment D $5,968 14 Leasehold improvements D $0 15 Vehicles D $0 16 Other: D $0 17 D 18 D 19 D 20 D 21 Total Property and Equipment $1,038,596 Other Assets 22 Loans to shareholders $0 23 Loans to affiliates $3,256,544 24 Loans to unrelated parties, net of $328,575 allowance $76,538 25 Investment in Mid-Power Resource Corp., at cost $43,497,198 26 27 28 Total Other Assets $46,830,280 29 Total Assets $47,918,599 NOTE: Investment in Mid-Power Resource Corp. reflects assets included in Mid-Power Resource Corporation's filing. Mid-Power Service is unable to estimate the market value of its investment in Mid-Power Resource Corporation. Mid-Power Resource is engaged in litigation with Edward Mike Davis, former owner of the principal assets held by the company. Mid-Power Service has elected to show cost as the market value until such time as a market value can be determined. Liabilities and Equity (General Business Case) Assets From Schedules Market Value -------------- ------------ Liabilities From Schedules Post-Petition Current Liabilities 30 Salaries and wages $0 31 Payroll taxes $8,733 32 Real and personal property taxes $0 33 Income taxes $0 34 Sales taxes $0 35 Notes payable (short term) $0 36 Accounts payable (trade) A $525 37 Real property lease arrearage $0 38 Personal property lease arrearage $0 39 Accrued professional fees $0 40 Current portion of long-term post-petition debt (due within 12 months) $91,033 41 Other: Accrued ordinary course expenses $136,477 42 43 44 Total Current Liabilities $236,768 45 Long-Term Post-Petition Debt: Deferred Tax Liability $8,490,000 46 Total Post-Petition Liabilities $8,726,768 Pre-Petition Liabilities (allowed amount) 47 Secured claims F $0 48 Priority unsecured claims F $0 49 General unsecured claims F $16,045,504 50 Total Pre-Petition Liabilities $16,045,504 51 Total Liabilities $24,772,272 Equity (Deficit) 52 Retained Earnings/(Deficit) at time of filing ($5,519,415) 53 Capital Stock, $.001 Par Value, 100,000,000 shares authorized, 27,972,276 issued and outstanding $27,972 54 Additional paid-in capital $28,872,101 55 Cumulative profit/(loss) since filing of case ($234,330) 56 Post-petition contributions/(distributions) or (draws) 57 58 Market value adjustment $0 59 Total Equity (Deficit) $23,146,327 60 Total Liabilities and Equity (Deficit) $47,918,599 SCHEDULES TO THE BALANCE SHEET (General Business Case) Schedule A Accounts Receivable and (Net) Payable Accounts Receivable Accounts Payable Past Due Receivables and Payables Agings [Pre and Post Petition] [Post Petition] Post Petition Debt ------------------------------- ----------------------- --------------- ------------------ 0 -30 Days $0 $525 31-60 Days 61-90 Days $0 91+ Days Total accounts receivable/payable $0 $525 Allowance for doubtful accounts Accounts receivable (net) $0 Schedule B Inventory/Cost of Goods Sold Types and Amount of Inventory(ies) Cost of Goods Sold Inventory(ies) Inventory Beginning of Month Balance at End of Month Add - Retail/Restaurants - Net purchase Product for resale Direct labor Manufacturing overhead Distribution - Freight in Products for resale Other: Manufacturer - Raw Materials Work-in-progress Less - Finished goods Inventory End of Month Shrinkage Other - Explain Personal Use Cost of Goods Sold $0 TOTAL $0 Method of Inventory Control Inventory Valuation Methods Do you have a functioning perpetual inventory system? Indicate by a checkmark method of inventory used. Yes [ ] No [ ] How often do you take a complete physical inventory? Valuation methods - FIFO cost Weekly _________________ LIFO cost Monthly _________________ Lower of cost or market Quarterly _________________ Retail method Semi-annually _________________ Other Annually _________________ Explain Date of last physical inventory was _____________________________ Date of next physical inventory is ______________________________ Schedule C Real Property Description Cost Market Value ----------- ---- ------------ Total $0 $0 Schedule D Other Depreciable Assets Description Cost Market Value ----------- ---- ------------ Machinery & Equipment - Two WPI generator sets $132,628 $132,628 Two GG4A-7 Non-Flight Pratt and Whitney turbine engines $900,000 $900,000 Total $1,032,628 $1,032,628 Furniture & Fixtures - Total $0 $0 Office Equipment - Computers, furniture, etc. $5,968 $5,968 Total $5,968 $5,968 Leasehold Improvements - Total $0 $0 Vehicles - Total $0 $0 Schedule E Aging of Post-Petition Taxes (As of End of the Current Reporting Period) Taxes Payable 0-30 Days 31-60 Days 61-90 Days 91+ Days Total ------------- --------- ---------- ---------- -------- ----- Federal Income Tax Withholding $5,047 $5,047 FICA - Employee $1,330 $1,330 FICA - Employer $1,330 $1,330 Unemployment (FUTA) $87 $87 Income $0 $0 Other (Attach List) $0 $0 Total Federal Taxes $7,794 $0 $0 $0 $7,794 State and Local Income Tax Withholding $0 $0 Unemployment (UT) $939 $939 Disability Insurance (DI) $0 $0 Empl. Training Tax (ETT) $0 $0 Sales $0 $0 Excise $0 $0 Real property $0 $0 Personal property $0 $0 Income $0 $0 Other (Attach List) $0 $0 Total State & Local Taxes $939 $0 $0 $0 $939 Total Taxes $8,733 $0 $0 $0 $8,733 ==================================================================================================================================== Schedule F Pre-Petition Liabilities List Total Claims For Each Classification - Claimed Allowed Amount Amount (b) ------ ---------- Secured claims (a) Priority claims other than taxes Priority tax claims General unsecured claims $16,045,504 (a) List total amount of claims even it under secured. (b) Estimated amount of claim to be allowed after compromise or litigation. As an example, you are a defendant in a lawsuit alleging damage of $10,000,000 and a proof of claim is filed in that amount. You believe that you can settle the case for a claim of $3,000,000. For Schedule F reporting purposes you should list $10,000,000 as the Claimed Amount and $3,000,000 as the Allowed Amount. Schedule G Rental Income Information Not applicable to General Business Cases Schedule H Recapitulation of Funds Held at End of Month Account 1 Account 2 Account 3 Account 4 --------- --------- --------- --------- Bank Wells Fargo Account Type Checking Account No. Account Purpose Operating Balance, End of Month $4,356 Total Funds on Hand for all Accounts $4,356 ==================================================================================================================================== Attach copies of the month end bank statement(s), reconciliation(s), and the check register(s) to the Monthly Operating Report. STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS Increase/(Decrease) in Cash and Cash Equivalents For the Month Ended 2/28/2003 Actual Cumulative Current Month (Case to Date) ------------- -------------- Cash Receipts 1 Rent/Leases Collected $0 $0 2 Cash Received from Sales $0 $0 3 Interest Received $6 $6 4 Borrowings $91,033 $91,033 5 Funds from Shareholders, Partners, or Other Insiders $0 $0 6 Capital Contributions $0 $0 7 Collection of account receivable $2,100 $2,100 8 $0 9 $0 10 $0 11 $0 12 Total Cash Receipts $93,139 $93,139 Cash Disbursements 13 Payments for Inventory 0 14 Selling $0 $0 15 Administrative $17,501 $17,501 16 Capital Expenditures $0 $0 17 Principal Payments on Debt $0 $0 18 Interest Paid $0 $0 Rent/Lease: 0 19 Personal Property $310 $310 20 Real Property $6,366 $6,366 Amount Paid to Owner(s)/Officer(s) 0 21 Salaries $0 $0 22 Draws $0 $0 23 Commissions/Royalties $0 $0 24 Expense Reimbursements $0 $0 25 Other $0 $0 26 Salaries/Commissions (less employee withholding) $17,952 $17,952 27 Management Fees $0 $0 Taxes: $0 28 Employee Withholding $1,064 $1,064 29 Employer Payroll Taxes $1,175 $1,175 30 Real Property Taxes $0 $0 31 Other Taxes $0 $0 32 Other Cash Outflows: $0 33 Ordinary Course Professionals 3,449.66 $3,450 34 Contract Labor 21,701.47 $21,701 35 Product Development $34,507 $34,507 36 Patent License Fees $1,200 $1,200 37 Advance to Mid-Power Resources 5,520 $5,520 38 Total Cash Disbursements: $110,746 $110,746 39 Net Increase (Decrease) in Cash ($17,607) ($17,607) 40 Cash Balance, Beginning of Period $21,963 $21,963 41 Cash Balance, End of Period $4,356 $4,356 $4,356 $0