EX-99.02 4 ex9902form8k082503.txt MPRC MONTHLY OPERATING REPORT FOR JUNE 2003 Exhibit 99.02
UNITED STATES BANKRUPTCY COURT DISTRICT OF NEVADA In re: Mid-Power Resource Corporation Case No. BK-S 03-10877 CHAPTER 11 MONTHLY OPERATING REPORT (GENERAL BUSINESS CASE) SUMMARY OF FINANCIAL STATUS MONTH ENDED: Jun-03 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 $35,338 $38,873 b. Total Assets * $32,346,470 $32,339,282 $46,108,938 c. Current Liabilities $17,736 $16,727 $16,088 d. Total Liabilities $1,757,645 $1,756,949 $4,073,070 3. Statement of Cash Receipts & Disbursements for Month Current Month Current Month Cumulative (Case to Date) a. Total Receipts $0 $238 $58,646 b. Total Disbursements $3,659 $9,726 $36,647 c. Excess (Deficiency) of Receipts Over Disbursements (a - b) ($3,659) ($9,488) $21,999 d. Cash Balance Beginning of Month $25,710 $35,198 $51 e. Cash Balance End of Month (c + d) $22,051 $25,710 $22,050 Current Month Current Month Cumulative (Case to Date) 4. Profit/(Loss) from the Statement of Operations ($637) ($9,792) ($11,447,821) 5. Account Receivables (Pre and Post Petition) $13,287 $13,163 6. Post-Petition Liabilities $17,736 $16,727 7. Past Due Post-Petition Account Payables (over 30 days) $0 $0 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? 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 Fees X; 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.) ------------------------------------------------------------------------------------------------------------------------------------ The cumulative profit from the Statement of Operations includes an $11.4 million gain on legal settlement. On a consolidated, GAAP basis of accounting, this gain would be completely offset by an $11.4 million impairment loss recorded on Mid-Power Resource Corp.'s Statement of Operations. ------------------------------------------------------------------------------------------------------------------------------------ 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: 8/22/2003 0:00 /s/ Mark Davis --------------------- ------------------------------------------------------------------- Responsible Individual
STATEMENT OF OPERATIONS (General Business Case) For the Period January 24 (bankruptcy filing) - June 30, 2003 Current Month --------------------------------------- Actual Forecast Variance Cumulative Next Month (Case to Date) Forecast Revenues: $124 85 $39 1 Gross Sales 25,748 85 - - - 2 less: Sales Returns & Allowances - - 124 85 39 3 Net Sales 25,748 85 - - 4 less: Cost of Goods Sold (Sched. 'B') - 124 85 39 5 Gross Profit 25,748 85 34,093 - 34,093 6 Interest 67,558 - - - - 7 Other Income: - - - - - 8 - - - - - 9 - - 34,217 85 34,132 10 Total Revenues 93,306 85 Expenses: - - - 11 Compensation to Owner(s)/Officer(s) - - - - - 0% 12 Salaries - - - - - 0% 13 Commissions - - - - - 0% 14 Contract Labor - - - - - 0% 15 Rent/Lease: - - Personal Property - - - 0% 16 Real Property - - 128 50 (78) -156% 17 Insurance 128 50 - - - 0% 18 Management Fees - - 21,629 - (21,629) 0% 19 Depreciation and Depletion 62,341 - - - - 0% 20 Taxes: - - Employer Payroll Taxes - - - 0% 21 Real Property Taxes - - - - - 22 Other Taxes - - - - - 0% 23 Other Selling - - 500 100 (400) -400% 24 Other Administrative 755 100 84 456 372 82% 25 Interest 1,986 446 - 0% 26 Other Expenses: 3,643 3,989 346 9% 27 Production Expenses 31,297 3,989 - 14,167 14,167 100% 28 Maintenance - Wells and Roads 898 62,267 - - 0% 29 Legal fees - Davis Lawsuit 2,320 0 8,370 4,000 (4,370) -109% 30 Ordinary Course Professionals 13,550 4,000 - - - 0% 31 Impairment Loss - Clear Creek 11,426,647 - - 0% 32 - 0% 33 - 0% 34 34,354 22,762 (11,592) 35 Total Expenses 11,539,922 70,852 (137) (22,677) 22,540 36 Subtotal (11,446,616) (70,767) - - 37 Reorganization Items: (172) 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 (500) (500) - 41 U.S. Trustee Quarterly Fees (750) - - - 42 Other (283) (500) (500) - 43 Total Reorganization Items (1,205) - (637) (23,177) 22,540 44 Net Profit (Loss) Before Federal & State Taxes (11,447,821) (70,767) - 45 Federal & State Income Taxes ($637) (23,177) $22,540 46 Net Profit (Loss) ($11,447,821) (70,767) Attach an Explanation of Variance to Statement of Operations (For variances greater than +/- 10% only):
MID-POWER RESOURCE CORPORATION BK-S-10877 For the Month Ended June 30, 2003 STATEMENT OF OPERATIONS - VARIANCE EXPLANATIONS Line 6 - Interest Accrual of interest on notes receivable from Sunray. This represents a quarterly accrual calculation. Line 17 - Insurance This represents auto insurance. Higher costs than budgeted. Line 19 - Depreciation and Depletion This represents quarterly calculation of depreciation and depletion. Line 24 - Other Administrative Amounts fluctuate on a monthly basis. Line 28 - Maintenance Expense No maintenance was performed during period. Line 30 - Ordinary Course Professionals Additional consultants used on Clear Creek property than was budgeted.
BALANCE SHEET (General Business Case) For the Month Ended 06/30/03 Assets From Schedules Market Value Current Assets 1 Cash and cash equivalents - unrestricted 22,051 2 Cash and cash equivalents - restricted $0 3 Accounts receivable (net) A $13,287 4 Inventory B $0 5 Prepaid expenses $0 6 Professional retainers $0 7 Other: 8 9 Total Current Assets $35,338 Property and Equipment (Market Value) 10 Real property C $0 11 Machinery and equipment D $0 12 Furniture and fixtures D $0 13 Office equipment D $0 14 Leasehold improvements D $0 15 Vehicles D $57,320 16 Other: D 17 D 18 D 19 D 20 D 21 Total Property and Equipment $57,320 Other Assets 22 Loans to shareholders - 23 Loans to affiliates 24 Deposits with federal and state agencies $170,000 25 Investment in oil and gas partnerships and joint ventures 29,757,187 26 Investment in Sunray Petroleum at original cost Footnote 1 $632,638 27 Notes and interest receivable from Sunray Petroleum Footnote 1 1,693,987 28 Total Other Assets $32,253,812 29 Total Assets $32,346,470 NOTE: See footnotes following this balance sheet. Liabilities and Equity (General Business Case) Liabilities From Schedules Post-Petition Current Liabilities 30 Salaries and wages $0 31 Payroll taxes $0 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 $4,043 37 Real property lease arrearage $0 38 Personal property lease arrearage $0 39 Accrued professional fees 3,666 40 Current portion of long-term post-petition debt (due within 12 months) 4,223 41 Other: Note payable to Mid-Power Service Corp. 5,804 42 Accrued U.S. Trustee fees - 43 44 Total Current Liabilities $17,736 45 Long-Term Post-Petition Debt, Net of Current Portion 46 Total Post-Petition Liabilities $17,736 Pre-Petition Liabilities (allowed amount) 47 Secured claims F $60,269 48 Priority unsecured claims F $0 49 General unsecured claims F $1,679,640 50 Total Pre-Petition Liabilities $1,739,909 51 Total Liabilities $1,757,645 Equity (Deficit) 52 Retained Earnings/(Deficit) at time of filing ($1,461,332) 53 Capital Stock issued and outstanding $1 54 Additional paid-in capital $43,497,198 55 Cumulative profit/(loss) since filing of case ($11,447,821) 56 Post-petition contributions/(distributions) or (draws) $0 57 58 Market value adjustment 279 59 Total Equity (Deficit) $30,588,325 60 Total Liabilities and Equity (Deficit) $32,345,970
Mid-Power Resource Corporation BK-S 03-10877 Footnotes to the Balance Sheet As Of June 30, 2003 Footnote 1 Management's belief is that the original investment in Sunray Petroleum, a wholly owned subsidiary, reflects the market value of this asset. In addition, it believes that the notes and interest receivable are fully recoverable. The application of generally accepted accounting procedures might provide different results.
SCHEDULES TO THE BALANCE SHEET (General Business Case) Schedule A Accounts Receivable and (Net) Payable Receivables and Payables Agings Accounts Receivable Accounts Payable Past Due [Pre and Post Petition] [Post Petition] Post Petition Debt 0 -30 Days $124 4,043 31-60 Days $0 61-90 Days $0 $0 91+ Days $13,163 Total accounts receivable/payable $13,287 $4,043 Allowance for doubtful accounts Accounts receivable (net) $13,287 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 $0 Shrinkage Other - Explain $0 Personal Use Tubing 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 [x] How often do you take a complete physical inventory? Valuation methods - FIFO cost x 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 - $0 $0 Total $0 $0 Furniture & Fixtures - Total $0 $0 Office Equipment - Total $0 $0 Leasehold Improvements - Total $0 $0 Vehicles - 2001 GMC Sierra - 2, net of depreciation; market value = Kelley Blue Book $57,041 $57,320 Total $57,041 $57,320
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 $0 FICA - Employee $0 FICA - Employer $0 Unemployment (FUTA) $0 Income $0 Other (Attach List) $0 Total Federal Taxes $0 $0 $0 $0 $0 State and Local Income Tax Withholding $0 Unemployment (UT) $0 Disability Insurance (DI) $0 Empl. Training Tax (ETT) $0 Sales $0 Excise $0 Real property $0 Personal property $0 Income $0 Other (Attach List) $0 Total State & Local Taxes $0 $0 $0 $0 $0 Total Taxes $0 $0 $0 $0 $0 Schedule F Pre-Petition Liabilities List Total Claims For Each Classification - Claimed Allowed Amount Amount (b) Secured claims (a) 60,269 60,269 Priority claims other than taxes $0 $0 Priority tax claims General unsecured claims 1,679,640 $1,679,640 (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. 100-9350446 Account Purpose Checking Balance, End of Month 22,051 Total Funds on Hand for all Accounts $22,051 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 06/30/03 Actual Cumulative Current Month (Case to Date) Cash Receipts 1 Rent/Leases Collected $0 - 2 Cash Received from Sales $0 48,620 3 Interest Received $0 - 4 Borrowings $0 4,223 5 Funds from Shareholders, Partners, or Other Insiders $0 5,804 6 Capital Contributions $0 - 7 $0 8 $0 9 $0 10 $0 11 $0 12 Total Cash Receipts $0 $58,646 Cash Disbursements 13 Payments for Inventory 0 0 14 Selling $0 - 15 Administrative $628 883 16 Capital Expenditures $0 - 17 Principal Payments on Debt $0 5,095 18 Interest Paid $0 1,902 Rent/Lease: 19 Personal Property $0 - 20 Real Property $0 - Amount Paid to Owner(s)/Officer(s) 0 21 Salaries $0 - 22 Draws $0 - 23 Commissions/Royalties $0 - 24 Expense Reimbursements $0 - 25 Other $0 - 26 Salaries/Commissions (less employee withholding) $0 - 27 Management Fees $0 $0 Taxes: 28 Employee Withholding $0 $0 29 Employer Payroll Taxes $0 $0 30 Real Property Taxes $0 - 31 Other Taxes $0 - 32 Other Cash Outflows: 33 Production Expenses $3,031 27,950 34 Maintenance Expenses $0 284 35 $0 36 U.S. Trustee $0 250 37 Other Reorganization Expenses $0 283 38 Total Cash Disbursements: $3,659 $36,647 39 Net Increase (Decrease) in Cash ($3,659) $21,999 40 Cash Balance, Beginning of Period $25,710 $52 41 Cash Balance, End of Period $22,051 $22,051