<TABLE>
Office of the United States Trustee
----------------------------------------------------- ------------------------------------------------------------
In re:
PREMIER LASER SYSTEMS, INC. DEBTOR IN POSSESSION INTERIM STATEMENT
3 Morgan --------------------------------------
Irvine, CA 92618
Statement Number: 7
----------
Debtor.
For the period FROM: 9/1/00
---------------------------------------------- -------------
Chapter 11 Case No.: SA00-12645RA TO: 9/30/00
------------------------- --------------
----------------------------------------------------- ------------------------------------------------------------
<CAPTION>
------------------ --------------- -----------------
General Payroll Tax
CASH ACTIVITY ANALYSIS (CASH BASIS ONLY) Account Account Account
------------------ --------------- -----------------
<S> <C> <C> <C>
A. Total Receipts per all Prior Interim Statements $3,662,579.09 $275,327.00 $200.00
------------------ --------------- -----------------
B. Less: Total Disbursements per all Prior Statements 1,319,034.12 263,722.93 -0-
------------------ --------------- -----------------
C. Beginning Balance (A less B) 2,343,544..97 11,604.07 200.00
------------------ --------------- -----------------
D. Receipts during Current Period
(ATTACH SEPARATE LISTING IF NECESSARY)
Description
-----------
SEE ATTACHMENT #1
TOTAL RECEIPTS THIS PERIOD: 163,117.53 67,000.00 -0-
------------------ --------------- -----------------
E. Balance Available (C plus D) 2,506,662.50 78,604.07 200.00
------------------ --------------- -----------------
F. Less: Disbursements during Current Period
(ATTACH SEPARATE LISTING IF NECESSARY)
Date Check No. Payee/Purpose
---- --------- -------------
SEE ATTACHMENT #1
TOTAL DISBURSEMENTS THIS PERIOD: 224,285.39 63,972.82 -0-
------------------ --------------- -----------------
G. Ending Balance (E less F) $2,282,377.11 $14,631.25 $200.00
------------------ --------------- -----------------
H. (1) General Account
(a) Depository Name and Location: California Bank & Trust, 3250 Wilshire Blvd., Los Angeles, CA 90010
--------------------------------------------------------------------
(b) Account Number: 3700011381
---------------------------------------------
(2) Payroll Account:
(a) Depository Name and Location: California Bank & Trust, 3250 Wilshire Blvd., Los Angeles, CA 90010
--------------------------------------------------------------------
(b) Account Number: 3700011111
---------------------------------------------
(3) Tax Account:
(a) Depository Name and Location: California Bank & Trust, 3250 Wilshire Blvd., Los Angeles, CA 90010
--------------------------------------------------------------------
(b) Account Number: 3700011031
---------------------------------------------
I. Other monies on hand (SPECIFY TYPE AND LOCATION) (i.e. Certificates of Deposit, Petty Cash):
Petty Cash $1,500
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
</TABLE>
I, (Name/Title: Judy McCall/Vice President), declare under penalty of perjury
that the information contained in the above Debtor in Possession Interim
Statement is true and complete to the best of my knowledge.
Dated: 10-16-00
-------------------
________________________________
Debtor in Possession or Trustee
14
<PAGE>
<TABLE>
Office of the United States Trustee
----------------------------------------------------- ------------------------------------------------------------
In re:
PREMIER LASER SYSTEMS, INC. DEBTOR IN POSSESSION INTERIM STATEMENT
3 Morgan --------------------------------------
Irvine, CA 92618
Report No. : 7 Page 1 of 3
------------------
Debtor.
For the period FROM: 9-1-00
---------------------------------------------- -------------
Chapter 11 Case No.: SA00-12645RA TO: 9-30-00
------------------------ --------------
----------------------------------------------------- ------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C>
1. Profit and Loss Statement (ACCRUAL BASIS ONLY) [SEE ATTACHMENT TWO]
A. Related to Business Operations:
Gross Sales $
--------------
Less: Sales Returns and Discounts
--------------
Net Sales
---------------
Less: Cost of Goods Sold:
Beginning Inventory at Cost
--------------
Add: Purchases
--------------
Less: Ending Inventory at Cost
--------------
Cost of Goods Sold
---------------
Gross Profit
---------------
Other Operating Revenues (Specify)
---------------
Less: Operating Expenses:
Officer Compensation
--------------
Salaries and Wages - Other Employees
--------------
Total Salaries and Wages
---------------
Employee Benefits and Pensions
---------------
Payroll Taxes
--------------
Real Estate Taxes
--------------
Federal and State Income Taxes
--------------
Total Sales
---------------
Rent and Lease Exp. (Real Property and Personal Property)
--------------
Interest Expense (Mortgage, Loan, etc.)
--------------
Insurance
--------------
Automobile Expense
--------------
Utilities (Gas, Electricity, Water, Telephone, etc.)
--------------
Depreciation and Amortization
--------------
Repairs and Maintenance
--------------
Advertising
--------------
Supplies, Office Expenses, Photocopies, etc.
--------------
Bad Debts
--------------
Miscellaneous Operating Expenses (Specify)
--------------
Total Operating Expenses
---------------
Net Gain/Loss from Business Operations
---------------
B. Not Related to Business Operations
Income:
Interest Income
---------------
Other Non-Operating Revenues (Specify)
---------------
Gross Proceeds on Sale of Assets
--------------
Less: Original Cost of Assets plus Expenses of Sale
--------------
Net Gain/Loss on Sale of Assets
---------------
Total Non-Operating Income
---------------
Expenses Not Related to Business Operation:
Legal and Professional Fees (Specify)
--------------
Other Non-Operating Expenses (Specify)
--------------
Total Non-Operating Expenses
---------------
NET INCOME / LOSS FOR PERIOD $
---------------
</TABLE>
15
<PAGE>
<TABLE>
DEBTOR IN POSSESSION OPERATING REPORT NO.: 7 PAGE 3 OF 3
-----
<CAPTION>
2. Aging of Accounts Payable and Accounts Receivable (exclude pre-petition accounts payable): (SEE ATTACHMENT #3, #4)
---------------------------- ----------------------------
Accounts Payable Accounts Receivable
---------------------------- ----------------------------
<S> <C> <C> <C>
Current Under 30 Days $97,585.25 $1,311
---------------------------- ----------------------------
Overdue 31-60 Days 118,815.16 775
---------------------------- ----------------------------
Overdue 61-90 Days 81,500.00 0
---------------------------- ----------------------------
Overdue 91-120 Days 109,452.82 0
---------------------------- ----------------------------
Overdue Over 121 Days 282,226.52 5,311,327
---------------------------- ----------------------------
TOTAL $689,579.75 $5,311,327
---------------------------- ----------------------------
3. Statement of Status of Payments to Secured Creditors and Lessors: (SEE ATTACHMENT # 5)
---------------------------------- ------------------- --------------- --------------- -------------------------------
Frequency Post-Petition Payments
of Payments per Amount Next Not Made*
Contract / Lease of Each Payment
Creditor/Lessor (i.e., mo., qtr.) Payment Due Number Amount
---------------------------------- ------------------- --------------- --------------- --------------- ---------------
$ $
---------------------------------- ------------------- --------------- --------------- --------------- ---------------
---------------------------------- ------------------- --------------- --------------- --------------- ---------------
---------------------------------- ------------------- --------------- --------------- --------------- ---------------
*Explanation for Non-Payment:
--------------------------------------------------------------------------------------
4. Tax Liability:
Gross Payroll Expense for Period: $ 35,993.71
-------------------------
Gross Sales for Period Subject to Sales Tax $ 32,285.45
-------------------------
------------------------ ------------------------ -----------------------
Post-Petition
Taxes Still
Date Paid* Amount Paid* Owing
------------------------ ------------------------ -----------------------
Federal Payroll and Withholding Taxes 9-21-00, 10-5-00 $5,061.17 $5,432.44
------------------------ ------------------------ -----------------------
State Payroll and Withholding Taxes 9-21-00, 10-5-00 918.73 997.52
------------------------ ------------------------ -----------------------
State Sales and Use Taxes Not Paid -0- 7,919.59
------------------------------------------------- -----------------------
Real Property Taxes INCLUDED IN RENT
------------------------------------------------- -----------------------
*Attach photocopies of depository receipts
from taxing authorities or financial
institutions to verity that such deposits or
payments have been made
(SEE ATTACHMENT #6)
5. Insurance Coverage: (SEE ATTACHMENT #7)
---------------------- --------------------- ------------------ ------------------
Carrier / Amount of Coverage Policy Premium Paid
Agent Name Expiration Date Through Date
---------------------- --------------------- ------------------ ------------------
Worker's Compensation HIH/Glen Carlson $1M, $1M, $1M 10/1/00 10/1/00
---------------------- --------------------- ------------------ ------------------
Liability Fed. Ins. Co. $4 M ea., $4M agg. 10/1/00 10/1/00
----------------------------------------------------------------------------------
Fire and Extended Coverage Included in Property Add General Liability Insurance
----------------------------------------------------------------------------------
Property & General Liability Fed. Ins. Co. 10/1/00 10/1/00
---------------------- --------------------- ------------------ ------------------
Theft Fed. Ins. Co. $75K & $75K 10/1/00 10/1/00
---------------------- --------------------- ------------------ ------------------
Life (Beneficiary: Employees) UNUM 1 x annual pay 11/1/00 8/1/00
---------------------- --------------------- ------------------ ------------------
Vehicle (Hired) Fed. Ins. Co. $1M 10/1/00 10/1/00
---------------------- --------------------- ------------------ ------------------
Other (Specify):
---------------------- --------------------- ------------------ ------------------
Marine Open Cargo Centennial $500K & $500K 10/1/00 Until Cancelled
---------------------- --------------------- ------------------ ------------------
Patent Infringement Defense AM Int'l. Specialty $2M ea., $2M agg 10/18/00 10/18/00
---------------------- --------------------- ------------------ ------------------
D&O Rock River & Lloyd's London $10,000,000 12/10/00 12/10/00
---------------------- --------------------- ------------------ ------------------
</TABLE>
16
<PAGE>
DEBTOR IN POSSESSION OPERATING REPORT NO.: 7 PAGE 3 OF 3
-----
6. Questions:
A. Has the Debtor in Possession provided compensation to any officers,
directors, shareholder, 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 filing the petition, made
any 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)
<TABLE>
<CAPTION>
-------------------------------------- ------------------------------------- ------------------------------------
State Type of Professional Total Post-Petition
Name of Professional (Attorney / Accountant / etc.) Amount Paid
-------------------------------------- ------------------------------------- ------------------------------------
<S> <C> <C>
Knobbe, Marten, Olson & Bear Attorney $60,568.34
-------------------------------------- ------------------------------------- ------------------------------------
O'Melveny & Myers Attorney 491,611.00
-------------------------------------- ------------------------------------- ------------------------------------
Winthrop & Couchet Attorney 93,000.00
-------------------------------------- ------------------------------------- ------------------------------------
-------------------------------------- ------------------------------------- ------------------------------------
</TABLE>
8. Narrative Report of Significant Events and Events out of the Ordinary
Course of Business (ATTACH SEPARATE SHEET IF NECESSARY)
----------------------------------------------------------------------------
None
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
9. Quarterly Fees: (This Fee must be paid to the United States Trustee every
calendar quarter)
<TABLE>
<CAPTION>
---------------- ----------------- --------------- -------------- --------------- --------------- ---------------
Total
Quarterly Disbursements Date Amount Quarterly Fee
Period Ending for Quarter Quarterly Fee Paid Paid Check No. Still Owing
---------------- ----------------- --------------- -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
3/31/00 69,828.68 500.00 4/27 500.00 10035, 10038 0
---------------- ----------------- --------------- -------------- --------------- --------------- ---------------
6/30/00 790,304.81 3,750.00 7/19 3,750.00 10352 0
---------------- ----------------- --------------- -------------- --------------- --------------- ---------------
9/30/00 683,186.02 3,750.00 10-16 3,750.00 10567 0
---------------- ----------------- --------------- -------------- --------------- --------------- ---------------
---------------- ----------------- --------------- -------------- --------------- --------------- ---------------
---------------- ----------------- --------------- -------------- --------------- --------------- ---------------
</TABLE>
I, (Name/Title: Judy McCall/Vice 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: 10/16/00
-------------------
_______________________________
Debtor in Possession of Trustee
17
<PAGE>
ATTACHMENT #2
1. Profit and Loss Statement (Accrual Basis Only)
A. Related to Business Operations
Gross Sales 151,592.55
Less: Sales Returns and Discounts -
--------------
Net Sales 151,592.55
Less: Cost of Goods Sold:
Beginning Inventory at Cost
Add: Purchases
Less: Ending Inventory at Cost
Cost of Goods Sold 101,012.94
--------------
Gross Profit 50,579.61
Other Operating Revenues -
Less: Operating Expenses:
Officer Compensation 19,792.00
Salaries and Wages-Other Employees 11,335.51
--------------
Total Salaries and Wages 31,127.51
Outside Services 66,237.38
Board of Directors Fees 11,500.00
Employee Benefits and Pensions 820.12
Payroll Taxes 2,015.71
Real Estate Taxes
Federal and State IncomeTaxes
--------------
Total Taxes 2,015.71
Rent and Lease Expense 22,179.78
Interest Expense
Insurance
Automobile Expense
Utilities
Depreciation 130,143.51
Repairs and Maintenance
Hiring expense
Vacation expense
Advertising
Supplies, Office Expense, Photocopies, etc 135.00
Bad Debts
Miscellaneous Operating Expenses:
Legal 5,900.00
Travel 1,414.56
Entertainment 95.84
Securities expense 2,142.50
ADP fees
Other 763.88
--------------
Total Miscellaneous Operating Expenses 10,316.78
--------------
Total Operating Expenses 274,475.79
--------------
Net Gain/Loss from Business Operations (223,896.18)
==============
18
<PAGE>
B. Not Related to Business Operations
Income:
Interest Income
Other Non-Operating Revenues
Gross Proceeds on Sale of Assets
Less: Original Cost of Assets plus Expense of Sale
--------------
Net Gain/Loss on Sale of Assets -
--------------
Total Non-Operating Income -
--------------
Expenses Not Related to Business Operations:
Legal and Professional Fees 81,000.00
Other Non-Operating Expenses
--------------
Total Non-Operating Expenses 81,000.00
--------------
NET INCOME/LOSS FOR PERIOD (304,896.18)
==============
19
<PAGE>
ATTACHMENT #3
Vendors Amount
--------------------------------------------------------------------------------
Knobbe Marten Olson & Bear 60,568.34
O'Melveny & Myers 491,611.00
Winthrop & Couchot 93,000.00
Magnum Group 25,000.00
Quoc Phan 108.00
Efrain Gonzalez 490.00
Irvine Ranch Water District 100.57
Jill Nester 1,073.00
Donna Chandler 2,675.00
Blue Shield of California 2,633.46
Pacific Bell 1,422.28
Dewey Pest 88.00
Intercall 748.63
LA Times 1,864.80
VSP 277.08
Tax Agencies 7,919.59
--------------------------------------------------------------------------------
Total 689,579.75
(1) Various Sales Tax Agencies
20
<PAGE>
ATTACHMENT # 5
3. STATEMENT OF STATUS OF PAYMENTS TO SECURED CREDITORS AND LESSORS:
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
Frequency
of Payments Amount Next Post Petition
Creditor/ per Contract/ of Each Payment Payments Not Made
--------------------------
Lessor Lease Payment Due Number Amount (1)
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 The Irvine Company Monthly 38,241.00 01-Oct
2 Konica Monthly 217.58 11-Oct
3 Konica Monthly 328.31 11-Oct
4 Konica Monthly 388.42 27-Oct
5 Pitney Bowes Credit Corporation Quarterly 1,395.00 7 2,790.00
6 Steelcase Financial Services Monthly 381.94 15-Oct
7 Dell Monthly 965.83 7 5,483.42
8 Green Tree Monthly 778.23 7 4,418.34
9 IC Capital Monthly 483.78 7 2,746.62
10 Intelenet Monthly 474.00 15-Oct
-----------------------------------------------------------------------------------------------------------
* Explanation for Non-Payment: Premier Laser Systems negotiating with vendor
---------------------------------------------
</TABLE>
21
