SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
In the matter of )
)
)
EUA ENERGY INVESTMENT CORPORATION ) Certificate of
Lowell, Massachusetts ) Notification
) Pursuant to
) Rule 24
(70-8837) )
)
(Public Utility Holding Company Act of 1935) )
Enclosed herewith for filing by EUA Energy Investment Corporation, a
wholly-owned subsidiary of Eastern Utilities Associates in
accordance with the Order of the Securities and Exchange Commission
entered in the above matter on June 26, 1996 (Release No. 35-26529)
and pursuant to Rule 24, are the balance sheet, the income statement,
and statement of cash flows for the period ended December 31, 1996 of
Separation Technologies, Inc., reflecting the investments to date
therein by EUA Energy Investment Corporation.
EUA Energy Investment Corporation
By: /s/ Clifford J. Hebert, Jr.
Clifford J. Hebert, Jr.
Treasurer
Dated: March 6, 1997
EUA ENERGY INVESTMENT CORPORATION
INVESTMENT IN SEPARATION TECHNOLOGIES, INC.
FOURTH QUARTER 1996
(1) In the fourth quarter STI was working to complete Phase II (completed
Phase II in the first quarter of 1997) at the Brayton Point Power
Project. Brayton Point Station is owned by New England Power and is
located in Somerset, MA. One STI separator has been running at
Brayton Point in a temporary location at the plant since June of 1995.
Phase II effectively doubles the Brayton Point separating capacity.
STI shipped a machine to Europe which became operational in September
1996. The separator will be tested and a decision will be made on
whether to purchase an additional machines from STI.
STI recently formed a joint venture with a marketing partner to
process and sell fly ash in the mid-Atlantic states.
(2) Separation Technologies' Financial Statements through December 31,
1996.
SEPARATION TECHNOLOGIES, INC.
CONDENSED BALANCE SHEET
December 31, 1996
(Unaudited)
(In Thousands of Dollars)
ASSETS
Fixed Assets:
Property and equipment, net $2,090
Total fixed Assets 2,090
Current Assets:
Cash and cash equivalents 1,236
Accounts Receivable 422
Inventories 29
Prepaid Expenses and Other 7
Total Current Assets 1,694
Other Assets:
Deposits 50
Acquired Intangibles 2,517
Patents and acquired Technology 411
Total Other Assets 2,978
TOTAL ASSETS $6,762
LIABILITIES
Stockholders' Investment:
Series A Convertible Preferred $16
Common Stock 37
Additional Paid-in-Capital 14,004
Deficit accumulated during development (9,248)
Total Common Equity 4,809
Long Term Liabilities:
Notes Payable to EUA Energy 1,000
Total Long Term Liabilities 1,000
Total Capitalization 5,809
Current Liabilities:
Accounts Payable 580
Notes Payable 112
Accrued Expenses 211
Other 50
Total Current Liabilities 953
TOTAL LIABILITIES AND EQUITY $6,762
SEPARATION TECHNOLOGIES, INC.
CONDENSED INCOME STATEMENT
For the Quarter Ended and YTD December 31, 1996
(Unaudited)
(In Thousands of Dollars)
QUARTER ENDED YTD
Revenues $364 $1,711
Cost of Revenues 297 951
Gross Profit 67 760
Operating Expenses:
Engineering, Research and Development 290 993
Sales and Marketing Expenses 51 196
General and Administrative Expenses 500 1,559
Total Operating Expenses 841 2,748
Operating Income (774) (1,988)
Other Income and Deductions 30 45
Income (Loss) Before Interest Charges (744) (1,943)
Interest Charges 45 45
Income (Loss) After Interest Charges (789) (1,988)
Pre-tax Net Income (Loss) ($789) ($1,988)
SEPARATION TECHNOLOGIES, INC.
STATEMENT OF CASH FLOWS
For the Year Ended December 31, 1996
(Unaudited)
(In Thousands of Dollars)
Operating Activities:
Pre-tax Net Income (Loss) ($1,988)
Depreciation & Amortization 696
Change in Current Assets and Liabilities:
Accounts & Notes Receivable (222)
Accounts & Notes Payable 125
Inventory 172
Current Assets and Liabilities 64
Other (Net) (49)
Net Operating Activities (1,202)
Investing Activities:
Capital Expenditures (537)
Other (2,540)
Net Investing Activities (3,077)
Financing Activities:
Equity Contributions 4,616
Long Term Debt 1,000
Decrease in Notes and Leases (142)
Net Financing Activities 5,474
Net increase in cash and cash equivalents 1,195
Cash and cash equivalents at beginning of year 41
Cash and cash equivalents at end of year 1,236
Non-Cash Investing and Financing Activities:
Conversion of Minority Interest to Common Stock $991
Acquisition of Intangible Asset with Common
Stock (Net of $2,500 in cash) 149
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