EXHIBIT 99.1 UNITED STATES BANKRUPTCY COURT WESTERN DIVISION OF MASSACHUSETTS Case Name: MRS Technology, Inc. Case Number: 98-44938-JFQ CHAPTER 11 MONTHLY OPERATING REPORT FOR MONTH ENDING AUGUST,1998 Comes Now, MRS Technology, Inc. Debtor-In-Possession, and hereby submits its Monthly Operating Report for the period commencing August 1, 1998 and ending August 31, 1998 as shown by the report and exhibits consisting of 14 pages and containing the following, as indicated: (X) Monthly Reporting Questionnaire (Attachment 1) (X) Comparative Balance Sheets (Forms OPR-1 & OPR-2) (X) Summary of Accounts Receivable (Form OPR-3) (X) Schedule of Post-petition Liabilities (Form OPR-4) (X) Income Statement (Form OPR-5) (X) Statement of Sources and Uses of Cash (Form OPR-6) I declare under penalty of perjury that this report and all attachments are true and correct to the best of my knowledge and belief. Date: September 24, 1998 DEBTOR(S)-IN-POSSESSION /s/ Patricia F. DiIanni Name & Title: Patricia F. DiIanni Vice President and Chief Financial Officer Address: MRS Technology, Inc. 10 Elizabeth Drive Chelmsford, MA 01824 Telephone No.: (978) 250-0450 ATTACHMENT 1 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE Case Name: MRS Technology, Inc. Case Number: 98-44938-JFQ MONTH OF: August 1998 1. Payroll: State the amount of all executive wages paid and taxes withheld and paid. Name and Title Wages Paid Taxes Withheld Of Executive Gross Net Due Paid C.P. Herrmann, CEO $14,615.40 $12,093.59 Weekly Weekly Before Before P.F. DiIanni, CFO $ 7,692.32 $ 5,715.93 Payday Payday E. DaSilviera, VP $ 8,076.92 $ 5,898.97 Via ADP Via ADP TOTAL EXECUTIVE PAYROLL: $30,384.64 2. Insurance: Is workers' compensation and other insurance in effect? Yes. Are payments current? Yes. If any policy has lapsed, been replaced or renewed, state so in the schedule below. Attach a copy of the new policy's binder or cover page. Date Carrier Coverage Expiration Premium Coverage Type Name Amount Policy # Date Amounts Pd Thru Homeowners Rental Property Liability Vehicle Workers Compensation Other CHAPTER 11 ATTACHMENT 1 MONTHLY OPERATING REPORT (Page 2) DETAILED LISTING OF DISBURSEMENTS CASE NAME: MRS Technology, Inc. CASE NUMBER: 98-44938-JFQ MONTH OF: August 1998 3. Bank Accounts Account Type Operating *MRSA Payroll Other Total Bank Name Fleet Japan BankBoston Petty Cash Account Number 94088-55556 N/A 896-60243 N/A BEGINNING BOOK $168,035 $ 7,474 $ 35,224 $1,557 $212,290 BALANCE PLUS: Deposits 299,933 16,108 0 1,200 317,241 LESS: Disbursements (88,818) (6,726)(111,742) (920) (208,206) Other: Transfers In (Out) (140,000) 0 140,000 0 0 Foreign Exchange Impact 184 184 ENDING BOOK BALANCE $239,150 $17,040 $ 63,482 $1,837 $321,509 * MRS Asia is located in Japan and has one service employee. 4. Post-Petition Payments: List any post-petition payments to professionals and payments on Pre-petition debts in the schedule below (attach separate sheet if necessary). Payments To/On Amount Date Check # Professionals (attorneys, None Accountants, etc.): Pre-petition Debts: None COMPARATIVE BALANCE SHEETS FORM OPR-1 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: August 1998 Case Number: 98-44938-JFQ FILING DATE MONTH ASSETS 7/1/98 July CURRENT ASSETS Cash $ 129,041 $ 212,290 Other negotiable instruments (i.e. CD's, Treasury Bills, Etc.) 0 0 Accounts Receivable, Net (OPR-3) 201,899 412,004 Less allowance for doubtful accounts (21,045) (21,045) Inventory, at cost 5,575,890 5,443,375 Prepaid expenses and deposits 132,884 131,300 Investments 0 0 Other: Uninvoiced Ship. 135,374 82,960 TOTAL CURRENT ASSETS $6,154,043 $6,260,884 PROPERTY, PLANT AND EQUIPMENT, AT COST 3,906,242 3,906,242 Less Accumulated Depreciation (3,775,570) (3,794,569) NET PROPERTY, PLANT AND EQUIPMENT 130,672 111,673 + OTHER ASSETS 29,339 29,091 TOTAL ASSETS $6,314,054 $6,401,648 +Itemize if value of "Other Assets" exceeds 10% of "Total Assets" COMPARATIVE BALANCE SHEETS FORM OPR-2 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: August 1998 Case Number: 98-44938-JFQ TOTAL MONTH LIABILITIES 7/1/98 July POST PETITION LIABILITIES 0 98,018 Priority Debt/Secured & Employee Expenses * $ 1,040,051 $ 1,070,538 Unsecured Debt 2,217,507 2,315,871 TOTAL PRE PETITION LIABILITIES 3,257,558 3,386,409 TOTAL LIABILITIES 3,257,558 3,484,427 SHAREHOLDER'S EQUITY (DEFICIT) Preferred Stock 0 0 Common Stock 68,586 68,586 Paid-In Capital 36,511,205 36,511,205 Retained Earnings Through Filing Date (33,523,295) (33,523,295) Post Filing Date 0 (130,874) TOTAL SHAREHOLDERS' EQUITY $ 3,056,496 $ 2,925,622 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 6,314,054 $ 6,410,049 * Includes accrued interest and expenses. COMPARATIVE BALANCE SHEETS FORM OPR-1 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: August 1998 Case Number: 98-44938-JFQ FILING DATE MONTH ASSETS 7/1/98 August CURRENT ASSETS Cash $ 129,041 $ 321,509 Other negotiable instruments (i.e. CD's, Treasury Bills, Etc.) 0 0 Accounts Receivable, Net (OPR-3) 201,899 266,224 Less allowance for doubtful accounts (21,045) (21,045) Inventory, at cost 5,575,890 5,411,849 Prepaid expenses and deposits 132,884 130,245 Investments 0 0 Other: Uninvoiced Ship. 135,374 82,960 TOTAL CURRENT ASSETS $6,154,043 $6,191,742 PROPERTY, PLANT AND EQUIPMENT, AT COST 3,906,242 3,906,242 Less Accumulated Depreciation (3,775,570) (3,809,060) NET PROPERTY, PLANT AND EQUIPMENT 130,672 97,182 + OTHER ASSETS 29,339 28,946 TOTAL ASSETS $6,314,054 $6,317,870 +Itemize if value of "Other Assets" exceeds 10% of "Total Assets" COMPARATIVE BALANCE SHEETS FORM OPR-2 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: August 1998 Case Number: 98-44938-JFQ TOTAL MONTH LIABILITIES 7/1/98 August POST PETITION LIABILITIES 0 97,475 Priority Debt/Secured & Employee Expenses * $ 1,040,051 $ 1,114,668 Unsecured Debt 2,217,507 2,343,878 TOTAL PRE PETITION LIABILITIES 3,257,558 3,458,546 TOTAL LIABILITIES 3,257,558 3,556,021 SHAREHOLDER'S EQUITY (DEFICIT) Preferred Stock 0 0 Common Stock 68,586 68,585 Paid-In Capital 36,511,205 36,511,205 Retained Earnings Through Filing Date (33,523,295) (33,523,295) Post Filing Date 0 (294,646) TOTAL SHAREHOLDERS' EQUITY $ 3,056,496 $ 2,761,849 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 6,314,054 $ 6,317,870 * Includes accrued interest and expenses. SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR-3 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: August 1998 Case Number: 98-44938-JFQ 0-30 31-60 61-90 OVER TOTAl DAYS DAYS DAYS 90 DAYS DATE OF FILING: 7/1/98 $201,899 $146,526 $31,187 $5,779 $18,407 Allowance for doubtful accounts - General (21,045) ( ) ( ) ( ) ( ) MONTH: July 1998 $412,005 $333,558 $55,532 $9,371 $13,544 Allowance for doubtful accounts - General (21,045) ( ) ( ) ( ) ( ) MONTH: August 1998 $265,342 $128,036 $49,620 $67,842 $19,844 Allowance for doubtful accounts (21,045) ( ) ( ) ( ) ( ) MONTH: Allowance for doubtful accounts ( ) ( ) ( ) ( ) ( ) MONTH: Allowance for doubtful accounts ( ) ( ) ( ) ( ) ( ) MONTH: Allowance for doubtful accounts ( ) ( ) ( ) ( ) ( ) MONTH: Allowance for doubtful accounts ( ) ( ) ( ) ( ) ( ) SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: August 1998 Case Number: 98-44938-0JFQ DATE DATE TOTAL INCURRED DUE DUE TAXES PAYABLE Federal Income Taxes 0 FICA-Employer's Share 0 FICA-Employer's Share 0 Unemployment Tax 0 State Income Tax 0 State Sales & Use Tax 0 State Tax 0 Personal Property Tax 0 TOTAL TAXES PAYABLE 0 POSTPETITION SECURED DEBT 1,114,668 POSTPETITION UNSECURED DEBT 0 0 ACCRUED INTEREST PAYABLE 0 0 TRADE ACCOUNTS PAYABLE & OTHER: (List Separately*) See attached sheet $97,475 Totals $97,475 *Attach separate page if necessary. Note: Total postpetition liabilities shown here must agree with the same item as shown on OPR-2 of this report. SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: August 1998 Case Number: 98-44938-JFQ 0-30 31-60 11-90 OVER DAYS DAYS DAYS 90 DAYS TAXES PAYABLE Federal Income Taxes FICA-Employer's Share FICA-Employer's Share Unemployment Tax State Income Tax State Sales & Use Tax State Tax Personal Property Tax TOTAL TAXES PAYABLE POSTPETITION SECURED DEBT POSTPETITION UNSECURED DEBT ACCRUED INTEREST PAYABLE TRADE ACCOUNTS PAYABLE & OTHER: (List Separately*) Totals *Attach separate page if necessary. Note: Total postpetition liabilities shown here must agree with the same item as shown on OPR-2 of this report. Schedule of Post Petition Liabilities - Form 4 Trade Accounts Payable & Other Date Amount Vendor 7/31/98 $ 413.69 ACT Teleconferencing 8/13/98 $12,353.96 Altid Enterprises 8/13/98 $12,353.96 Altid Enterprises 8/13/98 $12,353.96 Altid Enterprises 8/25/98 $ 32.00 Bain Pest Control Service 7/22/98 $ 1,000.00 Colonial Gas 8/24/98 $ 1,156.15 Delta Dental 8/19/98 $ 30.50 Federal Express 8/26/98 $ 57.60 Federal Express 8/15/98 $ 6,592.40 Harvard Community Health Plan 8/13/98 $ 88.88 HBS&R Client Trust 8/10/98 $ 360.15 J.D. Printing 8/21/98 $ 2,031.78 J.F. Quinn 8/1/98 $ 291.94 J.F. Quinn 8/31/98 $ 150.01 J.F. Quinn 8/22/98 $ 116.59 Joe Halberg 8/1/98 $ 347.43 Lucent Technologies 8/2/98 $ 859.25 Lucent Technologies 8/31/98 $ 719.12 Mass Mutual 8/24/98 $ 502.55 Reliance Standard Life 8/17/98 $ 1,929.10 Ron Trevisone 8/21/98 $ 1,329.20 Tom Guimond 8/5/98 $ 8.00 UFAC 8/4/98 $ 155.40 Xerox Corporation 8/1/98 $ 420.00 Decision One ACCRUALS: 7/31/98 $ 5,589.00 Vacation 7/31/98 $33,000.00 Legal 7/31/98 $10,000.00 Audit 7/31/98 $ 6,000.00 Commissions $97,474.97 INCOME STATEMENT FORM OPR-5 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: August 1998 Case Number: 98-44938-JFQ MONTH July NET REVENUE (INCOME) $ 341,679 COST OF GOODS SOLD Materials 107,334 Labor-Direct 53,386 Manufacturing Overhead 109,768 TOTAL COST OF GOODS SOLD LIABILITIES 270,488 GROSS PROFIT 71,191 Selling and Marketing 17,465 General and Administrative 155,931 Other:Research & Development 16,110 Other (Income)/Expense (8,224) TOTAL OPERATING EXPENSES 181,282 INCOME BEFORE INTEREST, DEPRECIATION, TAXES, OR EXTRAORDINARY EXPENSES (110,091) INTEREST EXPENSE 10,182 DEPRECIATION 19,000 INCOME TAX EXPENSE (BENEFIT) 0 EXTRAORDINARY INCOME (EXPENSE)* 0 NET INCOME (LOSS) (139,273) *Requires Footnote INCOME STATEMENT FORM OPR-5 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: August 1998 Case Number: 98-44938-JFQ MONTH FILING TO August DATE NET REVENUE (INCOME) $ 130,808 $ 472,487 COST OF GOODS SOLD Materials 33,483 142,817 Labor-Direct 54,125 107,511 Manufacturing Overhead 57,663 167,431 TOTAL COST OF GOODS SOLD LIABILITIES 145,271 415,759 GROSS PROFIT (14,463) 56,728 Selling and Marketing 266 17,731 General and Administrative 108,753 264,684 Other:Research & Development 1,967 18,077 Other (Income)/Expense (4,639) (12,863) TOTAL OPERATING EXPENSES 106,347 287,629 INCOME BEFORE INTEREST, DEPRECIATION, TAXES, OR EXTRAORDINARY EXPENSES (120,810) (230,901) INTEREST EXPENSE 20,070 30,252 DEPRECIATION 14,492 33,492 INCOME TAX EXPENSE (BENEFIT) 0 0 EXTRAORDINARY INCOME (EXPENSE)* 0 0 NET INCOME (LOSS) (155,372) (294,645) *Requires Footnote STATEMENT OF SOURCES AND USES OF CASH FORM OPR-6 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: August 1998 Case Number: 98-44938-JFQ MONTH JULY SOURCES OF CASH Income (Loss) From Operations (139,273) Add: Depreciation, Amortization & Other Non-Cash 19,000 CASH GENERATEED FROM OPERATIONS (120,273) Add: Decrease in Assets: Accounts Receivable 0 Inventory 132,515 Prepaid Expenses & Deposits 1,584 Property, Plant & Equipment 0 Other- Uninvoiced Shipments & Other 52,662 Increase in Liabilities Pre-Petition Liabilities 128,851 Post Petition Liabilities 98,018 TOTAL SOURCES OF CASH (A) $293,357 USES OF CASH Increase in Assets: Accounts Receivable $210,105 Inventory Prepaid Expenses & Deposts 0 Property, Plant & Equipment 0 Other 0 Decrease in Liabilities Pre-Petition Liabilities 0 Post Petition Liabilities 0 TOTAL USES OF CASH (B) 210,105 NET SOURCE (USE) OF CASH (A-B=NET) 83,252 CASH - BEGINNING BALANCE (See OPR-1) 129,041 CASH - ENDING BALANCE (See OPR-1) 212,290 [/TABLE] STATEMENT OF SOURCES AND USES OF CASH FORM OPR-6 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: August 1998 Case Number: 98-44938-JFQ MONTH August SOURCES OF CASH Income (Loss) From Operations (155,372) Add: Depreciation, Amortization & Other Non-Cash 14,492 CASH GENERATEED FROM OPERATIONS (140,880) Add: Decrease in Assets: Accounts Receivable 145,781 Inventory 31,526 Prepaid Expenses & Deposits 1,055 Property, Plant & Equipment 0 Other- Uninvoiced Shipments & Other 145 Increase in Liabilities Pre-Petition Liabilities 72,135 Post Petition Liabilities 0 TOTAL SOURCES OF CASH (A) $109,762 USES OF CASH Increase in Assets: Accounts Receivable $ 0 Inventory Prepaid Expenses & Deposts Property, Plant & Equipment 0 Other 0 Decrease in Liabilities Pre-Petition Liabilities 0 Post Petition Liabilities 543 TOTAL USES OF CASH (B) 543 NET SOURCE (USE) OF CASH (A-B=NET) 109,219 CASH - BEGINNING BALANCE (See OPR-1) 212,290 CASH - ENDING BALANCE (See OPR-1) 321,509