OFFICE OF THE UNITED STATES TRUSTEE
EXHIBIT 99.3
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In re: PREMIER LASER SYSTEMS, INC., Debtor DEBTOR IN POSSESSION OPERATING REPORT
1 Argonaut, Suite 201, Aliso Viejo, CA 92656 Report #: 15 Page: 1 of 3
SA00-12031RA For the period FROM: JUNE 1, 2001
TO: JUNE 30, 2001
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1. Profit and loss Statement
a. Related to Business operations:
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Gross Sales / A/R Collected $ 0.00
Less: Sales Returns or Discounts 0.00
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Net Sales $ 0.00
Less: Cost of Goods Sold 0.00
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Gross Profit $ 0.00
Less: Operating Expenses:
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Officer Compensation 11,538.50
Salaries and Wages - Other Employees 4,465.85
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Total Salaries and Wages 16,004.35
Employee Benefits and Pensions 417.00 417.00
Payroll Taxes 2,119.21
Real Estate Taxes 0.00
Federal and State Income Taxes 3,000.00
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Total Taxes 5,119.21
Rent and Lease Expense 2,400.00
Outside Services 56,818.14
Insurance 40,359.63
Security/Alarm 0.00
Utilities (Gas, Electricity, Water, Phone, etc.) 810.47
Patent & Securities/Exchange Expenses 1,635.00
Repairs, Maintenance & Gardening 300.00
Supplies, Office Exp., Photocopies, etc. 3,795.56
Computers - Office & Demo Eqpt. 970.86
Moving & Storage of Records 6,942.50
Bank Charges 0.00
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Total Other Operating Expenses 114,032.16
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Total Operating Expenses 135,572.72
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NET GAIN/(LOSS) FROM BUSINESS OPERATIONS (135,572.72)
b. Income Not Related to Business Operations
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Interest Income 15,712.81
Vendor Refunds 5,622.86
Health Insurance Payments-Employee, Capitation, Etc. 749.82
Closure of Old Bank Account 46.00
Gross Proceeds on Sales of Assets 50,000.00
Less: Orig Cost of Assets + Expenses of Sale 125.00
Net Gain/Loss on Sale of Assets 0.00
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Total Non-Operating Income 72,006.49
Expenses Not Related to Business Operations
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Bankruptcy Fees - Misc. 150.00
Court Approved Professional Fees 4,961.50
Costs - Fax/Xerox/Postage 261.26
Claims Review 413.90
Shareholders Ballot Mailer Re: Joint Plan of Liquidation 85,081.73
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Total Non-Operating Expenses 90,868.39
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NET INCOME (LOSS) FOR PERIOD $(154,434.62)
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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.
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Debtor in Possession Operating Report No. 15 Page 2 of 3
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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 $17,940 $0
Overdue 31 - 60 Days $0 $2,221 $0
Overdue 61 - 90 Days $0 $0 $0
Overdue 91 - 120 Days $0 $0 $0
Overdue Over 121 Days $0 $450,000 $622,342
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TOTAL $0 $470,161 $622,342
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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
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SEE ATTACHMENT #2
4. Tax Liability:
Gross Payroll Expense for Period: $ 7,002.06
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Gross Sales for Period Subject to Sales Tax $ 0.00
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Date Amount
Paid Paid Post Petition Taxes Still Owing
---- ---- -------------------------------
*Federal Payroll & Withholding Taxes $1,880.54 None
*State Payroll & Withholding Taxes $238.67
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.
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Debtor in Possession Operating Report No. 15 Page 3 of 3
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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
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X No
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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
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X No
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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 $98,276.64
O'Melveny & Myers Attorney $514,267.22
Winthrop & Couchet Attorney $327,160.32
Squar Milner Rheel & Williamson Accountants May/Jun $27,707.00
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
06/30/2001 $654,146 $3,750 07/11/2001 $3,750 5094 $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.
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Dated Robert P. Mosier,
President, Debtor in Possession
ATTACHMENT # 2
June 2001
3. STATEMENT OF STATUS OF PAYMENTS TO SECURED CREDITORS AND LESSORS:
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Frequency Post Petition
of Payments Amount Next Payments Not Made Notes
Creditor/ per Contract/ of Each Payment ----------------------- -----------------------------
Lessor Lease Payment Due Number Amount
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1 William Simmons Monthly 2,000.00 July 4 month office lease
2 Konica(1) Monthly 217.58 July 1 2,200.00 Fax machine, 2028 copier
3 Konica(1) Monthly 328.31 July 1 7490 Copier
3 Konica(1) Monthly 388.42 July 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 July 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 July no stip yet.
10 Intelenet Monthly 474.00 July 1 505.00 Cancel as of 3/1/01
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1 Signed Stipulation
2 O'Melveny handling in court
3 Under Negotiation
ATTACHMENT #3
May 31, 2001
Professionals >120 Days 91-120 Days 61-90 Days 31-60 Days <30 Days Total
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Squar Milner 12,230.00 15,477.00 27,707.00
O'Melveny & Myers 334,857.51 52,767.88 56,575.00 70,066.83 0.00 514,267.22
Winthrop & Couchot 169,105.34 40,841.49 20,112.20 33,991.30 63,109.99 327,160.32
Knobbe, Marten, Olson, & Bear 47,681.86 6,740.85 22,394.71 13,292.42 8,166.80 98,276.64
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Total Professional Fees 503,962.85 93,609.37 76,687.20 116,288.13 86,753.79 967,411.18