U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report ...........September 2, 1998
Earth Sciences, Inc.
(Exact name of registrant as specified in its charter)
Colorado 0-6088
(State of incorporation) (Commission File Number)
84-0503749
(IRS Employer Identification No.)
910 12th Street, Golden, Colorado 80401
(Address of principal executive offices, including Zip Code)
(Registrant's telephone number, including area code): (303) 279-7641
Item 5. Other Events.
Following is a portion of a Press Release made by Registrant on September 2,
1999:
" Earth Sciences Reduces Expenditures in Calgary and Venezuela to Concentrate
Resources on Growth of ADA-Environmental Solutions
Golden, CO- Earth Sciences, Inc. (OTCBB: ESCI) announced today that it has
instituted measures to reduce cash flow deficits at two of its operations in
order to accelerate the continued growth and profitability of its key wholly-
owned subsidiary, ADA-Environmental Solutions LLC (ADA-ES). The improved air
pollution technology provided by ADA-ES has been successful for over one year
now, and acceptance by the utility industry is demonstrated in the three new
units installed this year which are performing well. ADA-ES expects that the
four successful installations to-date will lead to additional contracts in the
near future.
"Our goal of attaining positive cash flow and profitability by the fourth
quarter of 1999 has been hampered by lower than break-even production of our
phosphate chemicals in Calgary and our continued exploration expenditures in
Venezuela," said Mark McKinnies, president of ESCI. "The measures announced
today will allow us to continue generating cash flow and profits from ADA-ES,
while we seek the capital necessary for the Calgary phosphate operations to be a
positive contributor to the bottom line."
ADA-ES - The proprietary technology sold by ADA-ES allows coal-burning utilities
to better control flue gas particle emissions. The four operating units are
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located in Wisconsin, Louisiana, Iowa and Oregon. This technology is helping
the respective utilities lower fuel costs, avoid expensive capital modifications
and meet emission standards. Revenues from the ongoing proprietary chemical
sales for these units are generating positive net cash flow and profitability
for ADA-ES on a stand-alone basis.
Measures to Reduce Cash Flow Deficit
Calgary Purified Phosphates - The phosphate production facility in Calgary has
overcome technical problems that plagued it last year. In the month of August
1999, the facility demonstrated the ability to produce a high quality product
and its production capacity. However, overcoming the technical problems
encountered in start up has depleted the Company's working capital. Currently,
the available working capital is inadequate to build the inventories of raw
material and finished goods necessary to sustain routine production and achieve
positive cash flow. Operations at the facility have been temporarily suspended
to reduce cash flow deficits while the Company seeks sources of funding for
working capital, expansion of capacity and food-grade production estimated to
total $2.5 million. This temporary suspension will have no significant effect
on ADA-ES operating units.
Venezuelan Mineral Exploration - The Company has closed two of its three field
offices and halted all significant exploration activities in Venezuela. Limited
availability of funds, lack of progress on the several concessions already
applied for, and recent turmoil in the Venezuelan Congress have influenced the
Company's decision to reduce activities to a minimum while maintaining the
positions it does hold. The Company would expect to reactivate its exploration
program if, and when, conditions change."
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 hereunto duly authorized.
Earth Sciences, Inc.
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(Registrant)
/s/ Mark H. McKinnies
Date: September 10, 1999 --------------------------------
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Mark H. McKinnies, President
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