EUA ENERGY INVESTMENT CORPORATION
INVESTMENT IN SEPARATION TECHNOLOGIES, INC.
SECOND 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 Xxxxxxx Xxxxxx, 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 has completed the testing stage with the Florida State
Department of Transportation to gain acceptance of the processed ash in
highway projects. Approval is anticipated within thirty days. At
present, the Company anticipates a mid-2000 start up at the Jacksonville
facility.
(2) Separation Technologies' Financial Statements through March 31, 1999.
SEPARATION TECHNOLOGIES, INC.
CONDENSED BALANCE SHEET
June 30, 1999
(Unaudited)
(In Thousands of Dollars)
ASSETS
Fixed Assets:
Property and equipment, net $6,072
Less: Accumulated depreciation 1,895
Total fixed Assets 4,177
Current Assets:
Cash and cash equivalents 1,091
Accounts Receivable, net 517
Inventories 30
Prepaid Expenses and Other 35
Total Current Assets 1,673
Other Assets:
Restricted Cash 944
Investment in ProAsh 325
Acquired Intangibles 100
Patents and acquired Technology 468
Total Other Assets 1,837
TOTAL ASSETS $7,687
LIABILITIES
Stockholders' Equity
Series A Convertible Preferred $16
Common Stock 37
Additional Paid-in-Capital 14,035
Deficit accumulated during development (14,068)
Total Stockholders' Equity 20
Long Term Liabilities:
Notes Payable to EUA Energy 2,362
Total Long Term Liabilities 2,362
Total Capitalization 2,382
Current Liabilities:
Accounts Payable 256
Notes Payable-current portion 4,423
Interest payable 134
Accrued Expenses and Deferred Revenue 492
Total Current Liabilities 5,305
TOTAL LIABILITIES AND EQUITY $7,687
SEPARATION TECHNOLOGIES, INC.
CONDENSED INCOME STATEMENT
For the Three Months and Year to Date Period Ended June 30, 1999
(Unaudited)
(In Thousands of Dollars)
QUARTER ENDED YTD
Revenues $935 $1,589
Cost of Revenues 316 555
Gross Profit 619 1,034
Operating Expenses:
Engineering, Research and Development 36 321
Sales and Marketing Expenses 187 317
General and Administrative Expenses 412 940
Total Operating Expenses 635 1,578
Operating Income (Loss) (16) (544)
Interest Charges and Other Expenses 106 230
Pre-tax Net Income (Loss) ($122) ($774)
SEPARATION TECHNOLOGIES, INC.
STATEMENT OF CASH FLOWS
For the Year to Date Period Ended June 30, 1999 (Unaudited)
(In Thousands of Dollars)
Operating Activities:
Pre-tax Net Income (Loss) ($774)
Depreciation & Amortization 274
Other 103
Change in Current Assets and Liabilities:
Accounts Receivable (126)
Accounts Payable (760)
Other Current Assets and Liabilities (58)
Net Operating Activities (1,341)
Investing Activities:
Capital Expenditures (1,893)
Investment in ProAsh 24
Net Investing Activities (1,869)
Financing Activities:
Increase in Notes and Leases 3,910
Net Financing Activities 3,910
Net increase in cash and cash equivalents 700
Cash and cash equivalents at December 31, 1998 391
Cash and cash equivalents at June 30, 1999 1,091
