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