KINGSLEY COACH, INC. FIRST QUARTER 10QSB

                 U. S. Securities and Exchange Commission
                        Washington, D. C. 20549

                             FORM 10-QSB

[X]     QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                   SECURITIES EXCHANGE ACT OF 1934

             For the quarterly period ended June 30, 1999

[ ]     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

            For the transition period from _____ to _____
                    Commission File No. 0-21733

                        KINGSLEY COACH, INC.
                 (Formerly Micro-Hydro Power, Inc.)
           (Name of Small Business Issuer in its Charter)

              DELAWARE                        87-0369035
   (State or Other Jurisdiction of     (I.R.S. Employer I.D. No.)
    incorporation or organization)

                        64 Old Route 522
                      Middleburg, PA 17842
            (Address of Principal Executive Offices)

            Issuer's Telephone Number: (570)837-7114

     Indicate  by check mark  whether the  Registrant  (1) has filed all
reports required to be filed by Sections 13 or 15(d) of the  Securities
Exchange Act of 1934  during  the  preceding  12 months  (or for such
shorter  period  that the Registrant was required to file such reports),  and
(2) has been subject to such filing requirements for the past 90 days.

(1)  Yes   X    No             (2)  Yes  X    No
         ----     ----                 ----         ----

APPLICABLE  ONLY TO  ISSUERS  INVOLVED  IN  BANKRUPTCY  PROCEEDINGS
DURING THE PRECEDING FIVE YEARS

None; not applicable.

     APPLICABLE  ONLY  TO  CORPORATE  ISSUERS  Indicate  the  number  of
shares outstanding  of each of the  Registrant's  classes  of common  stock,
as of the latest practicable date:

                      June 30, 1999
                   Common Voting Stock
                       10,100,010

                      June 30, 1999
                     Preferred Stock
                          -0-



PART I - FINANCIAL INFORMATION

Item 1.Financial Statements.

     The Financial  Statements of the Registrant  required to be filed with
this 10-QSB  Quarterly  Report  were  prepared  by  management  and
commence on the following page,  together with related Notes. In the opinion
of management,  the Financial Statements fairly present the financial
condition of the Registrant.

<TABLE>


                      KINGSLEY COACH, INC.
                (FORMERLY Micro-Hydro Power, Inc.)
                        BALANCE SHEET
              June 30, 1999 and December 31, 1998
                         (Unaudited)

<CAPTION>
                           ASSETS
                                     6/30/99               12/31/98

<S>                                    <C>                 <C>
Current Assets:
     Cash                               $  74,429           $  67,724
     Accounts Receivable                   23,908              22,959
     Inventory                            921,192             800,172
         Total Current Assets           1,019,529             890,855

Property & Equipment, net                  98,682              98,682

Other Assets:
     Deposits                               3,650               3,650

TOTAL ASSETS                           $1,121,861           $ 993,187



             LIABILITIES & STOCKHOLDERS' DEFICIT

Current Liabilities
     Accounts Payable                  $  150,168          $ 145,334
     Accrued Liabilities                   22,187             22,187
     Payable - Related Party               91,905             80,414
     Payroll Taxes Payable                 33,389             44,596
     Customer Deposits                    943,398            540,868
     Note Payable - Manufacturers         335,000            200,000
     Note Payable - Other                 461,469            479,523
     Note Payable - Shareholder           537,846            537,846
     Deferred Credits                      52,367                  0
         Total Current Liabilities      2,627,729          2,050,768

Stockholders' Deficit
    Preferred stock, $.00001 par value;
     authorized 5,000,000 shares; issued
     and outstanding -0- shares                 0                  0
    Common stock, $.00001 par value;
     authorized 30,000,000 shares;
     issued and outstanding 10,100,010        101                101
    Additional Paid-in Capital            191,878            191,878
    Accumulated Deficit                (1,249,560)        (1,249,560)
    Current Year Deficit               (  448,287)                 -
         Total Stockholders' Deficit   (1,505,868)        (1,057,581)

TOTAL LIABILITIES
     AND STOCKHOLDERS' DEFICIT          1,121,861            993,187

</TABLE>
See accompanying notes to financial statements.

<TABLE>

                        KINGSLEY COACH, INC.
                 (Formerly Micro-Hydro Power, Inc.)
                     STATEMENTS OF OPERATIONS
       For the Three Month Periods Ended June 30, 1999 and 1998
                          (Unaudited)

<CAPTION>
                                     Six Months         Six Months
                                        Ended             Ended
                                       6/30/99           6/30/98
<S>                                  <C>                  <C>
REVENUE
   Sales                             $ 579,790            $       0
   Cost of Sales                      (496,227)                   0
      Gross Margin                      83,563                    0

General and Administrative Expenses    478,631                1,007
      Net Loss from Operations        (395,068)              (1,007)

Other Income/Expense
   Interest Expense                    (53,219)                   0
      Total Other Income/Expense       (53,219)                   0

Net Loss Before Taxes                 (448,287)              (1,007)
    Income Taxes                             0                    0

Net Loss                             $(448,287)             $(1,007)

Loss Per Share                       $    (.04)             $  (.01)

Weighted Average
      Shares Outstanding            10,100,010              300,010

</TABLE>

See accompanying notes to the financial statements.

<TABLE>
                      KINGSLEY COACH, INC.
              (Formerly Micro-Hydro Power, Inc.)
              STATEMENT OF STOCKHOLDERS' DEFICIT
             FOR THE QUARTER ENDED JUNE 30, 1999
<CAPTION>
                                       Add'l     Accum-      Total
                   Shares     Common   Paid-in   ulated   Stockholders'
                   Issued     Stock    Capital   Deficit     Deficit
<S>               <C>        <C>      <C>       <C>         <C>

Balance, December
31, 1998          10,100,010 $ 101    $191,878  $(1,249,560) $(1,057,581)

Net Loss for the
Period Ended
March 31, 1999                                     (239,535)    (239,535)

Net Loss for the
Period Ended
June 30, 1999                                      (448,287)    (448,287)

Balance, June 30,
1999             10,100,010 $ 101     $191,878  $(1,937,382) $(1,745,403)

</TABLE>

See accompanying notes to the financial statements.

<TABLE>

                      KINGSLEY COACH, INC.
              (Formerly Micro-Hydro Power, Inc.)
                    STATEMENTS OF CASH FLOWS
    For the Three Month Periods Ended June 30, 1999 and 1998
                        (Unaudited)
<CAPTION>
                                      Six Months      Six Months
                                         Ended
Ended                                                         6/30/99
6/30/98
<S>                                  <C>               <C>
Cash Flows Provided By/Used For
     Operating Activities

  Net Loss                            $ (448,287)      $   (1,007)
  Adjustments to reconcile
  net loss to net cash provided by/
  used in operating activities:
    Increase in inventory               (121,020)               0
    Increase in accounts receivable         (949)               0
    Decrease in payroll liabilities      (11,207)               0
    Increase in accounts payable           4,834                0
    Increase in customer deposits        402,530                0
    Increase in deferred credits          52,367                0
      Net Cash Provided By/Used
      for Operating Activities          (121,732)               0

Cash Flows Provided By/Used for
Financing Activities
  Principal increase in notes payable    128,437                0
  Investment by shareholder                    0            1,007
     Net Cash Provided By Financing
     Activities                          128,437            1,007
       Net Increase in Cash                6,705                0

Beginning Cash Balance                    67,724                0

Ending Cash Balance                       74,429                0

Supplemental Disclosure
  Interest paid                           53,219                0
 Income taxes paid                             0                0

</TABLE>

     NOTES TO FINANCIAL  STATEMENTS:  Interim  financial  statements  reflect
all adjustments  which  are,  in the  opinion  of  management,  necessary  to
a fair statement  of the results for the periods.  The December 31, 1998
balance  sheet has been derived from the audited financial statements.  These
interim financial statements  conform with the requirements for interim
financial  statements and consequently do not include all the disclosures
normally  required by generally accepted accounting principles.
<PAGE>

Item 2.  Management Discussion and Analysis or Plan of Operation for the
Period Ended March 31, 1999, including material events as applicable

      The Company accumulated losses through December 31, 1998 amounting to
$1,249,560 and had a net working capital deficiency of $1,057,581 at December
31, 1998.  It accumulated losses through June 30, 1999 amounting to $448,287
and had a net working capital deficiency of $1,505,868 at June 30, 1999.

     The Company named Kermit Kingsley as Chief Executive Officer, effective
July 1999.  While bearing the same surname as the Company, Mr. Kingsley is not
related to the Company or any of its officers and directors.  Mr. Kingsley has
proposed a number of changes in the Company, which as of this release have not
become effective and may not become effective:

     New officers and directors.  The current proposal calls for the
following officers and directors: President, Daniel Ayres; Vice President and
CFO, Paul Gregg; Jack Patterson, Secretary/Treasurer; Kermit Kingsley,
Chairman of the Board; Fred Smith, Vice Chairman of the Board; David Ayres,
Director; Tom Pistacchio, Director; Gary Jestice, Director; Catherine Rimes,
Director; Charles Yeomans, Director.

     New manufacturing facility location.  A location for another
manufacturing facility is being sought in the West in order to increase plant
capacity to meet the delivery schedules for the increased number of orders
anticipated, in particular for specialty and medical units.

     Orders for specialty and mobile medical units.  Orders are being
negotiated for twenty-five specialty and mobile medical units to be delivered
within the next eighteen months.  These units would be priced at an average of
$700,000, for a total order of $17,500,000.

     Financing.  The Company is securing $1,000,000 of financing for the
purchase of truck chassis and power units, with interest at Prime Rate, and
ten percent payments due upon the placement of each order and every month
thereafter until each purchase is paid in full.  In addition, the Company is
looking to complete a $5,000,000 line of credit for operations of the Company,
secured by an insurance company financial guaranty bond.

     Consulting agreement.   The Company has signed a consulting agreement
with DRK, Inc., which consists of Ralph Dickenson, George Carlson, and Richard
Whitney.  Upon its effective date, which shall commence with the first payment
from the Company, the Company will pay DRK, Inc. $500,000 per year for five
years in exchange for DRK, Inc.'s consulting services over a five year period,
and the surrender to the Company of DRK, Inc.'s contacts, programs, customer
lists, research, records, engineering and software.

     Management believes that with the cash flow of the Company and the
financing as set forth above, that it can satisfy cash requirements through
the end of the year.  The Company is considering raising additional capital in
order to increase inventory and thereby speed up delivery time of its product
to its customers, and also to improve the Company's marketing efforts.  No
specific plans for such capital raising have been made at this time.

     Management recognizes that its product is considered a luxury item, and
that as the economy has enjoyed remarkable growth for some time, that the
growth cycle may end, detrimentally affecting consumer interest in luxury
items and the decrease of discretionary income.  Therefore, the Company is
pursuing contracts for specialty and mobile medical units.  Sales of these
units would result in a lower margin compared to the Company's luxury coaches.
However, it would result in volume orders from the same customer as well as
repeat business, which the Company lacks with individual luxury orders.

PART II   -   OTHER INFORMATION

Item 1. Legal Proceedings.

None; not applicable.

Item 2. Changes in Securities.

The Board has approved a 1-for-2 stock split in order to reposition the stock
in the market at a higher valuation.  This split will be effective within 30-
45 days.

All of the outstanding stock options as of December 31, 1998 have been
recaptured and canceled by the Company.

Item 3. Defaults Upon Senior Securities.

None; not applicable.

Item 4. Submission of matters to a Vote of Security Holders.

None; not applicable

Item 5. Other Information.

None; not applicable

Item 6. Exhibits and Reports on Form 8-K.

Exhibit Number                                     Description
- --------------                                     -----------
     (27)                                     Financial Date Schedule.



<PAGE>

SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the Registrant  has duly  caused  this  Report  to be  signed  on its  behalf
by the undersigned thereunto duly authorized.

                           KINGSLEY COACH, INC.


Date: 8-23-99               By /S/Ralph Dickenson
                           President and Director