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 March 31, 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: May 28, 1998
EUA ENERGY INVESTMENT CORPORATION
INVESTMENT IN SEPARATION TECHNOLOGIES, INC.
FIRST 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.
(2) Separation Technologies' Financial Statements through March 31, 1998.
SEPARATION TECHNOLOGIES, INC.
CONDENSED BALANCE SHEET
March 31, 1998
(Unaudited)
(In Thousands of Dollars)
ASSETS
Fixed Assets:
Property and equipment, net $2,905
Less: Accumulated depreciation 1,433
Total fixed Assets 1,472
Current Assets:
Cash and cash equivalents 904
Accounts Receivable, net 595
Inventories 6
Prepaid Expenses and Other 33
Total Current Assets 1,538
Other Assets:
Restricted Cash 429
Investment in ProAsh 87
Acquired Intangibles 225
Patents and acquired Technology 488
Total Other Assets 1,229
TOTAL ASSETS $4,239
LIABILITIES
Stockholders' Equity
Series A Convertible Preferred $16
Common Stock 37
Deferred Compensation (96)
Additional Paid-in-Capital 13,945
Deficit accumulated during development (13,102)
Total Stockholders' Equity 800
Long Term Liabilities:
Notes Payable to EUA Energy and Other 2,467
Capital Leases 17
Total Long Term Liabilities 2,484
Total Capitalization 3,284
Current Liabilities:
Accounts Payable 417
Notes and Leases Payable 82
Accrued Expenses and Deferred Revenue 456
Total Current Liabilities 955
TOTAL LIABILITIES AND EQUITY $4,239
SEPARATION TECHNOLOGIES, INC.
CONDENSED INCOME STATEMENT
For the Three Months Ended March 31, 1998
(Unaudited)
(In Thousands of Dollars)
QUARTER ENDED YTD
Revenues $585 $585
Cost of Revenues 183 183
Gross Profit 402 402
Operating Expenses:
Engineering, Research and Development 263 263
Sales and Marketing Expenses 63 63
General and Administrative Expenses 383 383
Total Operating Expenses 709 709
Operating Income (Loss) (307) (307)
Interest Charges 83 83
Other Income/(Expense) (1) (1)
Pre-tax Net Income (Loss) ($391) ($391)
SEPARATION TECHNOLOGIES, INC.
STATEMENT OF CASH FLOWS
For the Year to Date Period Ended March 31, 1998
(Unaudited)
(In Thousands of Dollars)
Operating Activities:
Pre-tax Net Income (Loss) ($391)
Depreciation & Amortization 193
Other 151
Change in Current Assets and Liabilities:
Accounts Receivable 173
Accounts Payable 70
Other Current Assets and Liabilities (16)
Net Operating Activities 180
Investing Activities:
Capital Expenditures (353)
Investment in ProAsh 52
Net Investing Activities (301)
Financing Activities:
Increase in Notes and Leases (28)
Purchase of Common Stock options 11
Net Financing Activities (17)
Net (decrease) in cash and cash equivalents (138)
Cash and cash equivalents at December 31, 1997 1,042
Cash and cash equivalents at March 31, 1998 904
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