AEP INVESTMENTS, INC.
QUARTERLY REPORT PER REQUIREMENTS
OF HOLDING COMPANY ACT RELEASE NO. 25667
FOR THE QUARTER ENDED SEPTEMBER 30, 1995
CONTENTS
Page
Statement of Income and Statement of Retained Earnings 1
Balance Sheet 2
Statement of Cash Flows 3
Notes to Financial Statements 4
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AEP INVESTMENTS, INC.
STATEMENT OF INCOME
THREE MONTHS ENDED SEPTEMBER 30, 1995
(UNAUDITED)
(in thousands)
REVENUES $39
EXPENSES
Affiliated Services 2
Ohio Corporate Francise Taxes 7
TOTAL EXPENSES 9
INCOME BEFORE FEDERAL INCOME TAXES 30
FEDERAL INCOME TAXES 10
NET INCOME $20
STATEMENT OF RETAINED EARNINGS
THREE MONTHS ENDED SEPTEMBER 30, 1995
(UNAUDITED)
(in thousands)
BALANCE AT BEGINNING OF PERIOD* $(8,416)
NET INCOME 20
BALANCE AT END OF PERIOD* $(8,396)
*Parentheses Denote Accumulated Deficit.
The common stock of the Company is wholly owned
by American Electric Power Company, Inc.
See Notes to Financial Statements.
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AEP INVESTMENTS, INC.
BALANCE SHEET
SEPTEMBER 30, 1995
(UNAUDITED)
(in thousands)
ASSETS
INVESTMENTS:
Intersource Technologies, Inc. $11,500
Envirotech Investment Fund I 197
PHPK Technologies, Inc. 299
TOTAL INVESTMENTS 11,996
CURRENT ASSETS:
Cash 42
Notes Receivable - Intersource Technologies, Inc. 1,000
Accounts Receivable 80
Prepayments 8
TOTAL CURRENT ASSETS 1,130
DEFERRED FEDERAL INCOME TAXES 4,485
DEFERRED CHARGES 234
TOTAL ASSETS $17,845
CAPITALIZATION AND LIABILITIES
Paid-in Capital $13,684
Accumulated Deficit (8,396)
TOTAL CAPITALIZATION 5,288
CURRENT LIABILITIES - Taxes Accrued 17
PROVISION FOR LOSS - Intersource Technologies, Inc. 12,540
TOTAL CAPITALIZATION AND LIABILITIES $17,845
See Notes to Financial Statements.
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AEP INVESTMENTS, INC.
STATEMENT OF CASH FLOWS
THREE MONTHS ENDED SEPTEMBER 30, 1995
(UNAUDITED)
(in thousands)
OPERATING ACTIVITIES:
Net Income $ 20
Changes in Certain Current Assets and Liabilities:
Accounts Receivable (40)
Prepayments 6
Taxes Accrued 13
Net Cash Flows Used For Operating Activities (1)
INVESTING ACTIVITIES - PHPK Technologies, Inc. (299)
FINANCING ACTIVITIES - Capital Contributions from Parent Company 299
NET DECREASE IN CASH (1)
CASH AT BEGINNING OF PERIOD 43
CASH AT END OF PERIOD $ 42
SUPPLEMENTAL DISCLOSURE:
Cash received for income tax refunds was $2,000.
See Notes to Financial Statements.
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AEP Investments, Inc.
Notes to Financial Statements
September 30, 1995
PROVISION FOR LOSS
In June 1994 the Company recorded a provision of $12,540,000 ($8,151,000 net
of a provision for deferred federal income taxes) for its investment in and
receivables from InterSource Technologies, Inc., which has been engaged in
development of a new lighting technology called the E-lamp. Efforts are being
made to recoup a portion of the investment. The Company has agreed to waive its
right to exercise remedies specified in the agreements supporting
the $1,040,000 of receivables from InterSource Technologies, Inc. and
released its security interest in the collateral.
