SOURCE: MetaPower International, Inc.

May 13, 2011 10:45 ET

MetaPower International, Inc. 2011 Q1 Financial Report

A Message From the President; Business Summary

PORTLAND, OR--(Marketwire - May 13, 2011) - MetaPower International, Inc. (PINKSHEETS: MTPR) is pleased to report a successful first quarter of year 2011. Success in this report is defined as progress toward our 2011 goals. Q1 Revenues are on track to meet or exceed goal. EBITDA is slightly behind target projected on an annual basis. We have increased our website activity dramatically in the quarter as a result of our marketing activity. Our current ratio, 0.46 : 1 has not progressed and is far from our goal.

2011 Performance Goals

--  2011 Revenue greater than $12.5 million

--  2011 EBITDA Income greater than $650,000

--  Noble Production Customer in 2011.

--  Current Ratio better than 1.5: 1

Financial Performance

Q1 Revenues were $3,276,639, an increase of 31% over Q1 2010. EBITDA was $141,195 a decrease of 53% from 2010. This is due to increased indirect costs, primarily due to marketing and the development of our Noble Production product. Payroll benefits increased by $150,834, marketing by $133,252 and product development by $120,816 quarter to quarter. This ramp up in spending began in Q2 of 2010 so this amount of change will be less dramatic next quarter.

Operational Performance

Operations have continued to be stable with low turnover of personnel, successfully meeting project milestones, and reliable cash flows.

Our Noble Production product team was expanded as planned with new technical and marketing resources. We are seeing a response in the market to our marketing activities and have begun to develop and manage a pipeline of prospects.

Business Outlook

Q2 is expected to continue to grow revenues and profits. We anticipate contracting a new Noble Production client in Q3 this year. We are concerned that our increasing costs could negatively impact our earnings goals. We will watch these closely in the coming quarters to balance our growth investment with our 2011 earnings goal. Improving our earnings is important to meeting our other balance sheet goals for 2011.

The energy market sector continues to be a healthy and aggressive sector. Our current contracts are stable and growing. We remain confident in our overall business forecast for 2011 and on into the near future.

As always, we appreciate the support of our shareholders.

Sincerely,

Kenneth R. Allen

President

MetaPower International, Inc.

2011 Q1 Financial Statements

The following financial statements are for the Q1 2011 operations of MetaPower, Inc. an Oregon corporation. MetaPower, Inc. is the sole operating subsidiary of MetaPower International, Inc.

These financial statements have been produced by MetaPower's internal certified public accountant.

Income Statement


                                                    Q1 2011      Q1 2010
                                                  -----------  -----------
Ordinary Income/Expense
      Income
        INCOME
          CONSULTING INCOME
            T&M Consulting                          2,700,211    2,074,377
            Fixed Price Consulting                          0            0
            Billed Expenses                           566,299      398,769
          Total Consulting Income                   3,266,510    2,473,146

          PRODUCT INCOME
            Reoccurring Maint. Contracts               10,129       26,970
            Other Product Income                            0            0
          Total Product Income                         10,129       26,970

          Other Income
            Misc. Income                                    0            0
          Total Other Income                                0           65
          Total Discounts Taken                             0            0
                                                  -----------  -----------
        Total Income                                3,276,639    2,500,182
                                                  -----------  -----------
      Total Income                                  3,276,639    2,500,182
                                                  -----------  -----------

    Cost of Goods Sold
        DIRECT EXPENSES
          Employees - Direct                           25,605      129,003
          Total Direct Contractor Expense           2,348,224    1,793,916
                                                  -----------  -----------
        Total DIRECTS                               2,373,828    1,922,919
                                                  -----------  -----------
      Total COGS                                    2,373,828    1,922,919
                                                  -----------  -----------
    Gross Profit                                      902,811      577,263
                                                  -----------  -----------
      Expense
        6000 - G & A
          Total Labor Expenses                         49,712       32,563
          Total Travel Expenses                         6,252           29
          Total Computer/Software Expenses              9,192        7,045
          Total Communication Expenses                 18,657        9,224
          Total Bank Fees                               3,202        3,254
          Total Facility Expenses                       8,241        4,955
          Total Postage & Shipping Expense                391          374
          Total Office Expenses                         5,174        1,215
          Total Professional Fees                      86,835       48,605
          Total Insurance Fees                          2,048        1,255
          Total Bad Debt Expense                            0        1,935
          Total Other G&A Expenses                      3,075        2,496
                                                  -----------  -----------
        Total G & A                                   192,778      112,950
        Total H/R - Pay + Ben.                        253,508      102,674
        Total Marketing                               154,852       21,600
        Total Research & Development                  160,477       39,661
      Total Expense                                   761,616      276,884
  Net Operating Income                                141,195      300,378
                                                  ===========  ===========

Other Income/Expense
  Other Income
    Other Income                                       75,123      105,452
    Net Equity Investment from MPC                          0            0
                                                  -----------  -----------
  Total Other Income                                   75,123      105,452
                                                  -----------  -----------
  Other Expense
    Interest Taxes Depreciation Amortization
      Interest Expense                                114,051       74,839
      Taxes                                            (3,538)      10,500
      Provision for Income Taxes                       33,910      125,768
      (Gain)/loss on Currency translation              (3,716)     (35,861)
      Loss on disposal of assets                            0            0
      Depreciation                                          0            0
      Amortization                                     12,635        8,016
      Penalties                                             0            0
                                                  -----------  -----------
    Total Interest Taxes Depreciation
     Amortization                                     153,342      183,261
                                                  -----------  -----------
  Total Other Expense                                 (78,219)     (77,809)
                                                  -----------  -----------
Net Income                                             62,976      222,570
                                                  ===========  ===========



Balance Sheet


                                                             Consolidated
                                                              3/31/2011
                                                           ---------------
ASSETS
   Current Assets
      Total Checking/Savings                               $     73,583.02
                                                           ---------------
      Total Accounts Receivable                            $    129,329.26
                                                           ---------------

      Other Current Assets
      Prepaid Expenses                                     $    323,001.01
                                                           ---------------
      Total Other Current Assets                           $    323,001.01
                                                           ---------------
   Total Current Assets                                    $    525,913.30

   Fixed Assets
      FIXED ASSETS
         Office Furniture                                  $         3,531
         Computers                                         $        32,207
         Computer Software                                 $       106,181
         UCODA Patent                                      $        86,785
         Accum Depreciation                                $       (15,630)
         Accumulated Amortization                          $       (67,198)
                                                           ---------------
   Total Fixed Assets                                      $       145,876

   Other Assets
      Misc Assets
         Amortization - Intellectual Capital               $      (258,128)
         Intellectual Capital                              $       258,128
                                                           ---------------
   Total Other Assets                                      $             0
                                                           ---------------
TOTAL ASSETS                                                       671,789
                                                           ===============

LIABILITIES & EQUITY
   Liabilities
      Current Liabilities
         Total Accounts Payable                            $    528,722.81
         Total Credit Cards                                $     47,401.49
                                                           ---------------

         Other Current Liabilities
            OTHER CURRENT LIABILITY
               Accrued Expense - LaPlante Buy Out          $             0
               Preferred Dividend                          $         2,167
               Accrued Expenses                            $       144,418
               Deferred Revenue                            $        20,258
               GST                                         $       126,802
               Settlement Account                          $        40,000
               Reg 105 w/h                                 $       128,505
               Accrued Interest                            $        67,802
               MPC GST Adjustments                         $        30,908
                                                           ---------------
            Total OTHER CURRENT LIABILITY                  $       560,861
         Total Other Current Liabilities                   $       560,861
                                                           ---------------
      Total Current Liabilities                            $     1,136,985

      Long Term Liabilities
         LONG TERM LIABILITY
            Third Party Notes Payable
               Note Payable - Stiltner                     $       130,000
               Robert Allen Note 2 Payable                 $         6,375
            Total Third Party Notes Payable                $       136,375

            Deferred Compensation
               Defered Officer Commission                  $        66,594
               Deferred Officer Salary                     $       951,432
               Deferred Officer Bonus                      $         3,705
               Deferred Employee Salary                    $       294,828
               Deferred Employee Commission                $         8,664
                                                           ---------------
            Total Deferred Compensation                    $     1,325,224

            Employee Notes Payable
               Ed Gibson FY2000 Profit                     $         5,446
               Note Payable - Chuck Rice                   $        37,308
               Ken Allen FY2000 Profit                     $        28,008
               Steve Ivy FY2000 Profit                     $         2,723
               John Prouty FY2000 Profit                   $         2,723
               Jane Ross Note-2                            $        42,037
               Ed Gibson Note 10                           $       160,132
               John Prouty Note 4                          $       130,797
                                                           ---------------
            Total Employee Notes Payable                   $       409,173

            Other Long Term Liabilities
               US Bank Credit Line                                       0
                                                           ---------------
            Total Other Long Term Liabilities              $             0
                                                           ---------------
         Total LONG TERM LIABILITY                         $     1,870,772
                                                           ---------------
      Total Long Term Liabilities                          $     1,870,772
                                                           ---------------
   Total Liabilities                                             3,007,757
                                                           ===============

   Equity
      EQUITY
         Opening Bal Equity
         Capital Stock - Common                                     20,310
         Dividends Paid                                             (6,500)
         Paid in Capital                                           308,432
         Series B Preferred Stock                                        2
                                                           ---------------

      Other Comprehensive Income
         Foreign Currency Translation                             (115,631)
                                                           ---------------
      Total Other Comprehensive Income                            (115,631)
      Total EQUITY                                         $       206,612
      Retained Earnings                                    $ (2,605,555.97)
      Net Income                                           $     62,975.65
                                                           ---------------
   Total Equity                                            $    (2,335,968)
                                                           ---------------
TOTAL LIABILITIES & EQUITY                                         671,789
                                                           ===============


Management Discussion and Analysis

--  These financial reports are compliant with GAAP Standards. Changes have
    been made from previous reporting periods as necessary to comply with
    GAAP standards.

--  Revenues are primarily due to the Suncor Energy contract through the
    MetaPower Canada wholly owned subsidiary.

--  Maintenance Contract revenues are from the Wolf Creek Nuclear Operating
    Company and includes the monthly maintenance for the UCoDA software
    system. Monthly revenues of approximately $5,000 are expected to
    continue throughout the year and into the future.

--  Finance costs for indebtness, other than factoring were generally the
    same quarter to quarter.

--  All other factors are similar to prior periods.

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