On April 23, 2010, approximately 1430 central daylight time, a Cross-Capps Breezy, N124RT, registered to and operated by Intergalactic Endeavor, LLC, was substantially damaged when it impacted terrain at Livingston Municipal Airport (00R), Livingston, Texas. Visual meteorological conditions prevailed at the time of the accident. The instructional flight was being conducted under the provisions of Title 14 Code of Federal Regulations (CFR) Part 91 without a flight plan. The private pilot receiving instruction was seriously injured. The flight instructor was not injured. The local flight originated at Livingston approximately 1420. According to the instructor's accident report, the second pilot made the takeoff from runway 30. The instructor realized the engine was not producing maximum takeoff power and the airplane's climb rate had diminished. The instructor assumed control of the airplane and maneuvered the airplane onto the downwind leg for runway 12. In the attempt to return to the runway, "the airplane stalled and banked approximately 20 degrees left then right." The instructor was able to recover from the stall and realized a turn from base to final approach was not possible. He landed the airplane straight ahead on a grass field on prison property about 1,800 feet from the runway. The airplane bounced three times, collapsing the left main landing gear. The Federal Aviation Administration responded to the accident scene and reported finding no anomalies with the engine. The instructor stated the airplane's owners were not interested in determining why the engine lost power.