OFFICE OF THE UNITED STATES TRUSTEE
EXHIBIT 99.2
- ---------------------------------------------------------- ------------------------------------------
In re: PREMIER LASER SYSTEMS, INC., Debtor DEBTOR IN POSSESSION OPERATING REPORT
1 Argonaut, Suite 201, Aliso Viejo, CA 92656 Report #: 14 Page: 1 of 3
SA00-12031RA For the period FROM: MAY 1, 2001
TO: MAY 31, 2001
- ---------------------------------------------------------- ------------------------------------------
1. Profit and loss Statement
a. Related to Business operations:
-------------------------------
Gross Sales / A/R Collected $ 4,170.11
Less: Sales Returns or Discounts 0.00
-------------
Net Sales $ 4,170.11
Less: Cost of Goods Sold 0.00
-------------
Gross Profit $ 4,170.11
Less: Operating Expenses:
-------------------------
Officer Compensation 14,969.50
Salaries and Wages - Other Employees 4,676.19
-------------
Total Salaries and Wages 19,645.69
Employee Benefits and Pensions 0.00 0.00
Payroll Taxes 2,168.88
Real Estate Taxes 0.00
Federal and State Income Taxes 0.00
-------------
Total Taxes 2,168.88
Rent and Lease Expense 4,000.00
Outside Services 30,705.00
Insurance 215.90
Security/Alarm 0.00
Utilities (Gas, Electricity, Water, Phone, etc.) 31.45
Patent & Securities/Exchange Expenses 2,975.00
Repairs, Maintenance & Gardening 0.00
Supplies, Office Exp., Photocopies, etc. 539.60
Computers - Office & Demo Eqpt. 3,268.50
Moving & Storage of Records 1,309.63
Bank Charges 0.00
-------------
Total Other Operating Expenses 43,045.08
-------------
Total Operating Expenses 64,859.65
-------------
NET GAIN/(LOSS) FROM BUSINESS OPERATIONS (60,689.54)
b. Income Not Related to Business Operations
-----------------------------------------
Interest Income 16,048.63
Vendor Refunds 3,196.40
Health Insurance Payments-Employee, Capitation, Etc. 257.63
Gross Proceeds on Sales of Assets 50,636.01
Less: Orig Cost of Assets + Expenses of Sale 0.00
Net Gain/Loss on Sale of Assets 0.00
-------------
Total Non-Operating Income 70,138.67
Expenses Not Related to Business Operations
-------------------------------------------
UST Quarterly Fees 0.00
Court Approved Professional Fees 6,152.36
Costs - Fax/Xerox/Postage 29.00
Claims Review 0.00
Settlements/Judgments-Cozean 0.00
-------------
Total Non-Operating Expenses 6,181.36
-------------
NET INCOME (LOSS) FOR PERIOD $ 3,267.77
=============
This financial statement has been prepared on the cash basis of accounting. As
this is a liquidating case, the Debtor believes that an accrual based financial
statement would be misleading.
- --------------------------------------------------------------------------------
Debtor in Possession Operating Report No. 14 Page 2 of 3
- --------------------------------------------------------------------------------
2. Aging of Accounts Payable and Accounts Receivable (exclude pre-petition
payable): SEE ATTACHMENT #1
Accrued Accounts Accounts
Payroll Payable Receivable
------- ------- ----------
Current Under 30 Days $0 $81,887 $0
Overdue 31 - 60 Days $0 $12,596 $0
Overdue 61 - 90 Days $0 $0 $0
Overdue 91 - 120 Days $0 $0 $0
Overdue Over 121 Days $0 $0 $622,342
---------- --------- ----------
TOTAL $0 $94,483 $622,342
========== ========= ==========
3. Statement of Status of Payments to Secured Creditors and Lessors:
Post Petition
Amount of Payments Not Made
Frequency of Each Next Pay -----------------
Creditor/Lessor Payment Payment Due Number Amount
- --------------- ------- ------- --- ------ ------
SEE ATTACHMENT #2
4. Tax Liability:
Gross Payroll Expense for Period: $ 6,845.07
--------------
Gross Sales for Period Subject to Sales Tax $ 0.00
--------------
Date Amount
Paid Paid Post Petition Taxes Still Owing
---- ---- -------------------------------
*Federal Payroll & Withholding Taxes $1,917.55 None
*State Payroll & Withholding Taxes $251.33
State Sales & Use Taxes - Estimated $50,000.00 Accountants Reconciling - Estimated
Real Property Taxes $0.00 None
*Premier Laser Systems, Inc. is on full service with ADP Payroll processing.
They deduct all payroll taxes and remit to the correct taxing agency.
Premium
5. Insurance Coverage Carrier/Agent Name Amount of Coverage Policy Exp. Paid
------------------ ------------------ Date Thru Date
---- ---------
Workers Compensation HIH/Calco $1M,$1M,$1M 06/01/2001 06/01/2001
Product/Completed Liab. Medmarc/AON $10K ea, $100K agg. 03/20/2002 03/02/2001
Self Ins. Ea. $50K
$200 agg.
* Liability Essex $4M ea, $4M agg 05/07/2002 05/07/2002 *
Directors & Officers Liab. World Wide Facilities/RLI $5M ea., $5m agg. 01/21/2004 01/21/2004
Fire & Extended Coverage Included in Property And General Liability Insurance
* Property & Genl Liab. Essex $1M ea., $2M agg. 05/07/2002 05/07/2002 *
Theft Federal Insurance/AON $75K & $75K 05/07/2002 05/07/2002 *
Vehicle (Hired) Federal Insurance/AON $1M 05/07/2002 05/07/2002 *
* Umbrella Policy Century Surety 05/05/2002 05/05/2002
*Premiums on insurance were paid 6/11/2001.
- --------------------------------------------------------------------------------
Debtor in Possession Operating Report No. 14 Page 3 of 3
- --------------------------------------------------------------------------------
6. Questions
A. Has the Debtor in Possession provided compensation to any officers,
directors, shareholders or other principals without the approval of the
Office of the United States Trustee?
Yes Explain
----------- ---------------------------------------------
X No
-----------
B. Has the Debtor in Possession, subsequent to the filing of the petition,
made payments on its pre-petition unsecured debt, except as have been
authorized by the Court?
Yes Explain
----------- ---------------------------------------------
X No
-----------
7. Statement of Unpaid Professional Fees (Post Petition Amounts Only):
Total
SEE ATTACHED STATEMENT # 3 Post-Petition
Type of Professional Amount
Name of Professional (Attorney, Accountant / etc) Unpaid
-------------------- ---------------------------- ------
Knobbe, Marten, Olson & Bear Attorney $90,109.84
O'Melveny & Myers Attorney $593,081.30
Winthrop & Couchet Attorney $244,891.26
Squar Milner Rheel & Williamson Accountants $17,191.50
8. Narrative of Report of Significant Events and Events out of the Ordinary
Course of Business: (Attach separate sheet if necessary).
SEE ATTACHMENT #4
9. Quarterly Fees:
Total Quarterly
Quarter Disbursements Quarterly Date Amount Check Fee
Ending For Quarter Fee Paid Paid Number Still Owing
------ ----------- --- ---- ---- ------ -----------
03/31/2000 $69,829 $500 04/27/2000 $500 10035/10038 $0
06/30/2000 $790,305 $3,750 07/19/2000 $3,750 10352 $0
09/30/2000 $683,186 $3,750 10/16/2000 $3,750 10567 $0
12/31/2000 $1,251,798 $5,000 01/04/2001 $5,000 114 $0
03/31/2001 $503,229 $3,750 04/27/2001 $3,750 2073 $0
I, Robert P. Mosier, President , declare under penalty of perjury that the
information contained in the above Debtor In Possession Operating Report is true
and Complete to the best of my knowledge.
- ---------------------- --------------------------------------------------
Dated Robert P. Mosier,
President, Debtor in Possession
ATTACHMENT #1
May 31, 2001
Vendors >120 Days 91-120 Days 61-90 Days 31-60 Days <30 Days Total
- ---------------------------------------------------------------------------------------------------------------------
0.00 -
C. Cozean 9,425.00 11,507.10 20,932.10
CPT Group 30,000.00 30,000.00
Frenkel of California 38,513.75 38,513.75
Pro Building Janitorial Sevice 150.00 150.00
Blue Shield / CobraServ 455.89 455.89
Sierra Group Storage 189.00 189.00
Ceridian Benefit Health Insurance 783.08 783.08
Cox Communications 99.95 99.95
D.Skelton 188.50 188.50
Three Way, Inc. 3,171.00 3,171.00
Various Tax Agencies (estimated) 50,000.00 50,000.00
-
-
-
-
-
-
- ---------------------------------------------------------------------------------------------------------------------
Total Accounts Payable 50,000.00 0.00 0.00 12,596.00 81,887.27 144,483.27
(1) Various Sales Tax Agencies
ATTACHMENT #3
May 31, 2001
Professionals >120 Days 91-120 Days 61-90 Days 31-60 Days <30 Days Total
- ---------------------------------------------------------------------------------------------------------------------------
Squar Milner 4,961.50 12,230.00 17,191.50
O'Melveny & Myers 359,634.97 57,383.00 49,421.50 56,575.00 70,066.83 593,081.30
Winthrop & Couchot 113,872.27 36,074.00 40,841.49 20,112.20 33,991.30 244,891.26
Knobbe, Marten, Olson, & Bear 43,171.86 4,510.00 6,740.85 22,394.71 13,292.42 90,109.84
- ---------------------------------------------------------------------------------------------------------------------------
Total Professional Fees 473,507.24 93,457.00 90,262.99 81,648.70 116,288.13 945,273.90
Grand Total (Vendors+Professionals) 1,089,757.17
ATTACHMENT # 2
May 2001
3. STATEMENT OF STATUS OF PAYMENTS TO SECURED CREDITORS AND LESSORS:
- ------------------------------------------------------------------------------------------------------------------------------------
Frequency Post Petition
of Payments Amount Next Payments Not Made Notes
Creditor/ per Contract/ of Each Payment ----------------------- -----------------------------
Lessor Lease Payment Due Number Amount
- ------------------------------------------------------------------------------------------------------------------------------------
1 William Simmons Monthly 2,000.00 June 4 month office lease
2 Konica(1) Monthly 217.58 June 1 2,200.00 Fax machine, 2028 copier
3 Konica(1) Monthly 328.31 June 1 7490 Copier
3 Konica(1) Monthly 388.42 June 1 5,000.00 7050 Copier, no stip
5 Pitney Bowes Credit Corporation(1) Quarterly 1,395.00 - Zero owed Equip. retrieved
6 Steelcase Financial Services(3) Monthly 381.94 June 1 2,056.00 Equip. sold to Intralase
7 Dell(1) Monthly 965.83 Zero owed Equip. retrieved
8 Green Tree(1) Monthly 778.23 Zero owed Equip. retrieved, laptops
9 IC Capital(2) Monthly 483.78 June no stip yet.
10 Intelenet Monthly 474.00 June 1 505.00 Cancel as of 3/1/01
- ------------------------------------------------------------------------------------------------------------------------------------
1 Signed Stipulation
2 O'Melveny handling in court
3 Under Negotiation