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 June 30, 1998 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: August 17, 1998
EUA ENERGY INVESTMENT CORPORATION
INVESTMENT IN SEPARATION TECHNOLOGIES, INC.
SECOND QUARTER 1998
(1) The Company is currently targeting the development of projects in the Mid-
Atlantic area. The company has entered into an exclusive letter of intent
to negotiate the terms of a fly ash supply agreement to process and market
up to 268,000 tons of fly ash in the Mid-Atlantic area. Under a
commercial agreement with St. John's River Power Plant (SJRPP), the
Company will install and operate two separators at the SJRPP generating
station where 300,000 tons of the Plant's high-carbon fly ash will be
processed. This fly ash will be used by the Florida concrete market,
primarily on roads and highways. The company is currently seeking
approval of this process by the Florida Transportation Department. The
Company anticipates the approval process will take up to nine months.
(2) Separation Technologies' Financial Statements through June 30, 1998.
SEPARATION TECHNOLOGIES, INC.
CONDENSED BALANCE SHEET
June 30, 1998
(Unaudited)
(In Thousands of Dollars)
ASSETS
Fixed Assets:
Property and equipment, net $2,759
Less: Accumulated depreciation 1,569
Total fixed Assets 1,190
Current Assets:
Cash and cash equivalents 1,326
Accounts Receivable, net 779
Inventories 3
Prepaid Expenses and Other 21
Total Current Assets 2,129
Other Assets:
Restricted Cash 892
Investment in ProAsh 135
Acquired Intangibles 200
Patents and acquired Technology 485
Total Other Assets 1,712
TOTAL ASSETS $5,031
LIABILITIES
Stockholders' Equity
Series A Convertible Preferred $16
Common Stock 37
Deferred Compensation (71)
Additional Paid-in-Capital 13,945
Deficit accumulated during development (12,918)
Total Stockholders' Equity 1,009
Long Term Liabilities:
Notes Payable to EUA Energy and Other 2,542
Capital Leases 12
Total Long Term Liabilities 2,554
Total Capitalization 3,563
Current Liabilities:
Accounts Payable 407
Notes Payable-current portion 333
Interest Payable 82
Accrued Expenses and Deferred Revenue 646
Total Current Liabilities 1,468
TOTAL LIABILITIES AND EQUITY $5,031
SEPARATION TECHNOLOGIES, INC.
CONDENSED INCOME STATEMENT
For the Three Months Ended June 30, 1998
(Unaudited)
(In Thousands of Dollars)
QUARTER ENDED YTD
Revenues $1,786 $2,371
Cost of Revenues 654 837
Gross Profit 1,132 1,534
Operating Expenses:
Engineering, Research and Development 305 568
Sales and Marketing Expenses 62 125
General and Administrative Expenses 507 890
Total Operating Expenses 874 1,583
Operating Income (Loss) 258 (49)
Interest Charges 60 143
Other Income/(Expense) (4) (5)
Pre-tax Net Income (Loss) ($391) ($197)
SEPARATION TECHNOLOGIES, INC.
STATEMENT OF CASH FLOWS
For the Year to Date Period Ended June 30, 1998
(Unaudited)
(In Thousands of Dollars)
Operating Activities:
Pre-tax Net Income (Loss) ($197)
Depreciation & Amortization 373
Other 121
Change in Current Assets and Liabilities:
Accounts Receivable (11)
Accounts Payable 51
Other Current Assets and Liabilities 220
Net Operating Activities 557
Investing Activities:
Capital Expenditures (665)
Investment in ProAsh 5
Net Investing Activities (660)
Financing Activities:
Increase in Notes and Leases 376
Purchase of Common Stock options 11
Net Financing Activities 387
Net (decrease) in cash and cash equivalents 284
Cash and cash equivalents at December 31, 1997 1,042
Cash and cash equivalents at June 30, 1998 1,326
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