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: Mar-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 $47,925 N/A
b. Total Assets $35,035,982 N/A $47,925,781
c. Current Liabilities $362,884 N/A 13,052.92
d. Total Liabilities $16,408,388 N/A $24,545,123
Cumulative
3. Statement of Cash Receipts & Disbursements for Month Current Month Prior Month (Case to Date)
a. Total Receipts $96,099 N/A $189,238
b. Total Disbursements $95,682 N/A $206,428
c. Excess (Deficiency) of Receipts Over Disbursements (a - b) $417 N/A ($17,190)
d. Cash Balance Beginning of Month $4,356 N/A $21,963
e. Cash Balance End of Month (c + d) $4,773 N/A $4,773
Cumulative
Current Month Prior Month (Case to Date)
4. Profit/(Loss) from the Statement of Operations ($128,536) N/A ($362,867)
5. Account Receivables (Pre and Post Petition) $0 N/A
6. Post-Petition Liabilities $362,884 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 Fees [ ] 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.)
Total assets include a $30.6 million invested in Mid-Power Resource Corporation.
* The March monthly operating reports reflect the decision to impair the value of the Clear Creek property. Since these reports
were prepared as of 3/31/03, they do not reflect the results of the settlement agreement reached with Edward Mike Davis, which was
approved by the Bankruptcy Court on April 9, 2003. For a discussion of the full effects of the settlement agreement, see Mid-Power's
current event report on Form 8-K filed April 21, 2003.
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: 05-01-03 /s/ James W. Scott
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Responsible Individual
STATEMENT OF OPERATIONS
(General Business Case)
For the Period January 24 (bankruptcy filing) - March 31, 2003
Current Month
- ----------------------------------------------------------
Actual Forecast Variance Cumulative Next Month
(Case to Date) Forecast
Revenues:
$0 - $0 1 Gross Sales - -
- - - 2 less: Sales Returns & Allowances - -
- - - 3 Net Sales - -
- - 4 less: Cost of Goods Sold (Schedule 'B') -
- - - 5 Gross Profit - -
2,692 - 2,692 6 Interest 2,698 -
- - - 7 Other Income: - -
- - - 8 - -
- - - 9 - -
2,692 - 2,692 10 Total Revenues 2,698 -
Expenses:
- - - 11 Compensation to Owner(s)/Officer(s) - -
17,383 17,383 - 0% 12 Salaries 37,435 17,383
- - - 0% 13 Commissions - -
8,731 11,320 2,589 23% 14 Contract Labor 35,733 11,320
310 310 (0) 0% 15 Rent/Lease: 621 310
Personal Property
2,788 3,338 550 16% 16 Real Property 6,366 2,802
2,685 2,758 73 3% 17 Insurance 4,996 2,043
- - - 0% 18 Management Fees - -
318 - (318) 0% 19 Depreciation 318 -
1,863 1,866 3 0% 20 Taxes: 3,729 1,616
Employer Payroll Taxes
- - - 0% 21 Real Property Taxes - -
25 - (25) 0% 22 Other Taxes 25 75
- - - 0% 23 Other Selling - -
1,996 5,272 3,276 62% 24 Other Administrative 10,669 5,272
1,260 - (1,260) 0% 25 Interest 1,260 -
- 0% 26 Other Expenses:
1,200 1,200 - 0% 27 Patent License Fees 2,400 1,800
58,829 59,000 171 0% 28 Product Development 134,917 30,000
10,450 7,950 (2,500) -31% 29 Auditors 10,785 10,000
- 3,294 3,294 100% 30 Travel 6,128 3,294
416 800 384 48% 31 U.S. Stock Transfer Group 1,335 800
1,833 1,836 3 0% 32 SEC attorney 14,501 -
- 0% 33
- 0% 34
110,087 116,327 6,240 35 Total Expenses 271,218 86,715
(107,395) (116,327) 8,932 36 Subtotal (268,520) (86,715)
(19,891) (80,000) (60,109) 37 Reorganization Items: (93,097) (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
(1,250) (1,500) (250) 41 U.S. Trustee Quarterly Fees (1,250) -
- 42
(21,141) (81,500) 60,359 43 Total Reorganization Items (94,347) (80,000)
(128,536) (197,827) 69,291 44 Net Profit (Loss) Before Federal & State Taxes (362,867) (166,715)
- 45 Federal & State Income Taxes
($128,536) ($197,827) $69,291 46 Net Profit (Loss) ($362,867) ($166,715)
Attach an Explanation of Variance to Statement of Operations (For variances greater than +/- 10% only):
MID-POWER SERVICE CORPORATION
BK-S-03-10874-RCJ
For the Month Ended March 31, 2003
STATEMENT OF OPERATIONS - VARIANCE EXPLANATIONS
Line 12 - Contract Labor
Less hours billed by contract accountant during month.
Line 24 - Other Administration
Amounts fluctuate on a monthly basis. Less phone, postage and office expense
during current month.
BALANCE SHEET
(General Business Case)
For the Month Ended 03/31/03
Assets
From Schedules Market Value
Current Assets
1 Cash and cash equivalents - unrestricted $4,772
2 Cash and cash equivalents - restricted $0
3 Accounts receivable (net) A $0
4 Inventory B $0
5 Prepaid expenses $8,153
6 Professional retainers $35,000
7 Other: $0
8
9 Total Current Assets $47,925
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 $5,650
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 $1,038,278
Other Assets
22 Loans to shareholders $0
23 Loans to affiliates $3,257,765
24 Loans to unrelated parties, net of $328,575 allowance $77,725
25 Investment in Mid-Power Resource Corp. Footnote 1 $30,614,289
26
27
28 Total Other Assets $33,949,779
29 Total Assets $35,035,982
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 $5,974
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 $5,437
37 Real property lease arrearage $0
38 Personal property lease arrearage $0
39 Accrued professional fees (accrued but not yet approved by Trustee) $110,392
40 Current portion of long-term post-petition debt (due within 12 months) $187,132
41 Other: Accrued ordinary course expenses $51,439
42 Interest expense - DIP loan $1,260
43 Accrued trustee fees $1,250
44 Total Current Liabilities $362,884
45 Long-Term Post-Petition Debt
46 Total Post-Petition Liabilities $362,884
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 $16,408,388
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 ($362,867)
56 Post-petition contributions/(distributions) or (draws)
57
58 Market value adjustment Footnotes 1 & 2 ($4,390,196)
59 Total Equity (Deficit) $18,627,594
60 Total Liabilities and Equity (Deficit) $35,035,982
Mid-Power Service Corporation
BK-S 03-10874-RCJ
Footnotes to the Balance Sheet
As Of March 31, 2003
Footnote 1
The valuation of Mid-Power Service's wholly-owned investment, Mid-Power Resource
Corporation, has been adjusted to reflect Mid-Power Resource's equity balance on
March 31, 2003. This valuation reflects the $11.4 million impairment Mid-Power
Resource recorded on its Clear Creek Property during the current period. The
application of generally accepted accounting procedures might provide different
results.
Footnote 2
The market value adjustment also reflects the removal of a GAAP-calculated $8.5
million deferred tax liability included in the February monthly operating
report, but which does not reflect an existing claim by the IRS.
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 $0 5,436.81
31-60 Days
61-90 Days $0
91+ Days
Total accounts receivable/payable $0 $5,437
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)
Balance at
End of Month Inventory Beginning 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. $5,650 $5,650
Total $5,650 $5,650
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 $3,215 $3,215
FICA - Employee $1,330 $1,330
FICA - Employer $1,330 $1,330
Unemployment (FUTA) $99 $99
Income $0 $0
Other (Attach List) $0 $0
Total Federal Taxes $5,974 $0 $0 $0 $5,974
State and Local
Income Tax Withholding $0 $0
Unemployment (UT) $0 $0
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 $0 $0 $0 $0 $0
Total Taxes $5,974 $0 $0 $0 $5,974
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 $4,773
Total Funds on Hand for all Accounts $4,773
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 03/31/03
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 $0 $6
4 Borrowings $96,099 $187,132
5 Funds from Shareholders, Partners, or Other Insiders $0 $0
6 Capital Contributions $0 $0
7 Collection of accounts receivable $0 $2,100
8 $0
9 $0
10 $0
11 $0
12 Total Cash Receipts $96,099 $189,238
Cash Disbursements
13 Payments for Inventory 0
14 Selling $0
15 Administrative $6,784 $24,285
16 Capital Expenditures $0
17 Principal Payments on Debt $0
18 Interest Paid $0
Rent/Lease: 0
19 Personal Property $310 $620
20 Real Property $2,788 $9,154
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) $12,839 $30,791
27 Management Fees $0
28 Employee Withholding $6,377 $7,441
29 Employer Payroll Taxes $1,330 $2,505
30 Real Property Taxes $0 $0
31 Other Taxes $25 $25
32 Other Cash Outflows:
33 Ordinary Course Professionals 5,415.71 8,865.71
34 Contract Labor 9,906.88 31,607.88
35 Product Development $48,707 $83,214
36 Patent License Fees $1,200 $2,400
37 Advance to Mid-Power Resources 5,520
38 Total Cash Disbursements: $95,682 $206,428
39 Net Increase (Decrease) in Cash $417 ($17,190)
40 Cash Balance, Beginning of Period $4,356 $21,963
41 Cash Balance, End of Period $4,773 $4,773
MID-POWER SERVICE CORPORATION
LISTING OF PAYMENTS MADE TO PROFESSIONALS
FOR THE MONTH ENDED MARCH 31, 2003
Date Amount Payee
3/5/2003 2,007 Robert Half
3/12/2003 5,000 Tanner + Co
3/13/2003 3,293 Robert Half
3/13/2003 17,787 Don Carroll **
3/20/2003 2,406 Robert Half
3/31/2003 2,200 Robert Half
3/31/2003 416 U.S. Stock Transfer Group
* Categorized as Contract Labor in Statement of Receipts and Disbursements
**Categorized as Product Development in Statement of Receipts and Disbursements