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, 1999 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: June 3, 1999
EUA ENERGY INVESTMENT CORPORATION
INVESTMENT IN SEPARATION TECHNOLOGIES, INC.
FIRST QUARTER 1999
(1) During mid-May 1999, the Company completed the construction and
installation of its first unit separator with Baltimore Gas & Electric.
This agreement provides for two separators to be installed at Baltimore
Gas & Electric's Brandon Shores, Maryland operation facility. It is
anticipated, based on the demand levels for fly ash, that construction of
the second unit will start within twenty four months.
The Company is in the final testing stage with the Florida State
Department of Transportation to gain acceptance of the processed ash in
highway projects. At present, the Company anticipates a late 1999 start
up at the Jacksonville facility.
(2) Separation Technologies' Financial Statements through March 31, 1999.
SEPARATION TECHNOLOGIES, INC.
CONDENSED BALANCE SHEET
March 31, 1999
(Unaudited)
(In Thousands of Dollars)
ASSETS
Fixed Assets:
Property and equipment, net $6,107
Less: Accumulated depreciation 1,826
Total fixed Assets 4,281
Current Assets:
Cash and cash equivalents 2,248
Accounts Receivable, net 348
Inventories 52
Prepaid Expenses and Other 37
Total Current Assets 2,685
Other Assets:
Restricted Cash 932
Investment in ProAsh 290
Acquired Intangibles 125
Patents and acquired Technology 450
Total Other Assets 1,797
TOTAL ASSETS $8,763
LIABILITIES
Stockholders' Equity
Series A Convertible Preferred $16
Common Stock 37
Additional Paid-in-Capital 14,035
Deficit accumulated during development (13,947)
Total Stockholders' Equity 141
Long Term Liabilities:
Notes Payable to EUA Energy 2,602
Total Long Term Liabilities 2,602
Total Capitalization 2,743
Current Liabilities:
Accounts Payable 341
Notes Payable-current portion 4,273
Interest payable 125
Accrued Expenses and Deferred Revenue 1,281
Total Current Liabilities 6,020
TOTAL LIABILITIES AND EQUITY $8,763
SEPARATION TECHNOLOGIES, INC.
CONDENSED INCOME STATEMENT
For the Three Months and Year to Date Period Ended March 31, 1999
(Unaudited)
(In Thousands of Dollars)
QUARTER ENDED YTD
Revenues $ 654 $654
Cost of Revenues 239 239
Gross Profit 415 415
Operating Expenses:
Engineering, Research and Development 285 285
Sales and Marketing Expenses 130 130
General and Administrative Expenses 528 528
Total Operating Expenses 943 943
Operating Income (Loss) (528) (528)
Interest Charges and Other Expenses 124 124
Pre-tax Net Income (Loss) ($652) ($652)
SEPARATION TECHNOLOGIES, INC.
STATEMENT OF CASH FLOWS
For the Year to Date Period Ended March 31, 1999 (Unaudited)
(In Thousands of Dollars)
Operating Activities:
Pre-tax Net Income (Loss) ($652)
Depreciation & Amortization 186
Other 905
Change in Current Assets and Liabilities:
Accounts Receivable 43
Accounts Payable (675)
Other Current Assets and Liabilities (107)
Net Operating Activities (300)
Investing Activities:
Capital Expenditures (1,898)
Investment in ProAsh 59
Net Investing Activities (1,839)
Financing Activities:
Increase in Notes and Leases 3,996
Net Financing Activities 3,996
Net increase in cash and cash equivalents 1,857
Cash and cash equivalents at December 31, 1998 391
Cash and cash equivalents at March 31, 1999 2,248
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