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, 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: February 26, 1999
EUA ENERGY INVESTMENT CORPORATION
INVESTMENT IN SEPARATION TECHNOLOGIES, INC.
FOURTH QUARTER 1998
(1) As indicated in a previous filing, the Company has signed an agreement
with Baltimore Gas & Electric to install up to two separators at the
Brandon Shores, Maryland operating facility. Construction of these units
commenced during the month of October 1998 and is progressing on
schedule. It is anticipated to be completed by April 1999.
The Company is continuing the necessary testing for 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.
The Company has entered into a distribution agreement with a nationally
recognized construction company to distribute its product.
(2) Separation Technologies' Financial Statements through December 31, 1998.
SEPARATION TECHNOLOGIES, INC.
CONDENSED BALANCE SHEET
December 31, 1998
(Unaudited)
(In Thousands of Dollars)
ASSETS
Fixed Assets:
Property and equipment, net $4,466
Less: Accumulated depreciation 1,691
Total fixed Assets 2,775
Current Assets:
Cash and cash equivalents 391
Accounts Receivable, net 597
Inventories 20
Prepaid Expenses and Other 18
Total Current Assets 1,026
Other Assets:
Restricted Cash 875
Investment in ProAsh 349
Acquired Intangibles 150
Patents and acquired Technology 461
Total Other Assets 1,835
TOTAL ASSETS $5,636
LIABILITIES
Stockholders' Equity
Series A Convertible Preferred $16
Common Stock 37
Deferred Compensation (20)
Additional Paid-in-Capital 13,945
Deficit accumulated during development (13,178)
Total Stockholders' Equity 800
Long Term Liabilities:
Notes Payable to EUA Energy 2,804
Total Long Term Liabilities 2,804
Total Capitalization 3,604
Current Liabilities:
Accounts Payable 728
Notes Payable-current portion 71
Accrued Expenses and Deferred Revenue 1,233
Total Current Liabilities 2,032
TOTAL LIABILITIES AND EQUITY $5,636
SEPARATION TECHNOLOGIES, INC.
CONDENSED INCOME STATEMENT
For the Three Months and Year to Date Period Ended December 31, 1998
(Unaudited)
(In Thousands of Dollars)
QUARTER ENDED YTD
Revenues $ 670 $3,940
Cost of Revenues 165 1,238
Gross Profit 505 2,702
Operating Expenses:
Engineering, Research and Development 404 1,261
Sales and Marketing Expenses (2) 186
General and Administrative Expenses 451 1,611
Total Operating Expenses 853 3,058
Operating Income (Loss) (348) (356)
Interest Charges (5) 310
Other Income/(Expense) 68 209
Pre-tax Net Income (Loss) ($275) ($457)
SEPARATION TECHNOLOGIES, INC.
STATEMENT OF CASH FLOWS
For the Year to Date Period Ended Decemmber 31, 1998
(Unaudited)
(In Thousands of Dollars)
Operating Activities:
Pre-tax Net Income (Loss) ($457)
Depreciation & Amortization 720
Other 705
Change in Current Assets and Liabilities:
Accounts Receivable 172
Accounts Payable 372
Other Current Assets and Liabilities 125
Net Operating Activities 1,637
Investing Activities:
Capital Expenditures (2,456)
Investment in ProAsh (209)
Net Investing Activities (2,665)
Financing Activities:
Increase in Notes and Leases 366
Purchase of Common Stock options 11
Net Financing Activities 377
Net (decrease) in cash and cash equivalents (651)
Cash and cash equivalents at December 31, 1997 1,042
Cash and cash equivalents at December 31, 1998 391
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