Chem-Mod LLC -

At December 31, 2019, we held a 46.5% controlling interest in

Chem-Mod

LLC.

Chem-Mod

LLC possesses the exclusive marketing rights, in the U.S. and Canada, for technologies used to reduce emissions created during the combustion of coal. The refined coal production plants discussed below, as well as those owned by other unrelated parties, license and use

Chem-Mod

LLC’s proprietary technologies, The

Chem-Mod™

Solution, in the production of refined coal. The

Chem-Mod™

Solution uses a dual injection sorbent system to reduce mercury, sulfur dioxide and other emissions at coal-fired power plants.

We believe that the application of The

Chem-Mod™

Solution qualifies for refined coal tax credits under IRC Section 45 when used with refined coal production plants placed in service by December 31, 2011 or 2009.

Chem-Mod

LLC has been marketing its technologies principally to coal-fired power plants owned by utility companies, including those utilities that are operating with the IRC Section 45 refined coal production plants in which we hold an investment.

Chem-Mod LLC is determined to be a variable interest entity (which we refer to as a VIE). We are the manager (decision maker) of

Chem-Mod

LLC and therefore consolidate its operations into our consolidated financial statements. At December 31, 2019, total assets and total liabilities of this VIE included in our consolidated balance sheet were $16.3 million and $2.8 million, respectively. At December 31, 2018, total assets and total liabilities of this VIE included in our consolidated balance sheet were $14.0 million and $1.4 million, respectively. For 2019, total revenues and expenses were $81.9 million and $17.5 million, respectively. For 2018, total revenues and expenses were $73.7 million and $4.1 million, respectively. We are under no obligation to fund Chem-Mod’s operations in the future.

Chem-Mod International LLC -

At December 31, 2019, we held a 31.5% noncontrolling ownership interest in

Chem-Mod

International LLC.

Chem-Mod

International LLC has the rights to market The

Chem-Mod™

Solution in countries other than the U.S. and Canada. Such marketing activity has been limited to date.

C-Quest Technology LLC and C-Quest Technologies International LLC (which we refer to as together, C-Quest) -

At December 31, 2019, we held a noncontrolling 12% interest in

C-Quest’s

global entities.

C-Quest

possesses rights, information and technology for the reduction of carbon dioxide emissions created by burning fossil fuels. Thus far,

C-Quest’s

operations have been limited to laboratory testing.

C-Quest

is determined to be a VIE, but we do not consolidate this investment into our consolidated financial statements because we are not the primary beneficiary or decision maker.

Clean Coal Investments -

•

We have investments in limited liability companies that own 34 refined coal production plants which produce refined coal using proprietary technologies owned by Chem-Mod LLC. We believe the production and sale of refined coal at these plants is qualified to receive refined coal tax credits under IRC Section 45. The 14 plants placed in service prior to December 31, 2009 (which we refer to as the 2009 Era Plants) were eligible to receive tax credits through 2019 and the 20 plants placed in service prior to December 31, 2011 (which we refer to as the 2011 Era Plants) are eligible to receive tax credits through 2021.

•

As of December 31, 2019:

•

Twenty of the plants have long-term production contracts.

•

We have a noncontrolling interest in one plant, which is owned by a limited liability company (which we refer to as a LLC). We have determined that this LLC is a VIE, for which we are not the primary beneficiary

and therefore do not consolidate it.

At December 31, 2019, total assets and total liabilities of this VIE were $31.1 million and $30.0 million, respectively. For 2019, total revenues and expenses of this VIE were $64.9 million and $79.8 million, respectively.

•

We and our

co-investors

each fund our portion of the

on-going

operations of the limited liability companies in proportion to our investment ownership percentages. Other than our portion of the

on-going

operational funding, there are no additional amounts that we are committed to related to funding these investments.

Other Investments -

At December 31, 2019, we owned a

non-controlling,

minority interest in four venture capital funds totaling $4.5 million and eight certified

low-income

housing developments with zero carrying value. The

low-income

housing developments and real estate entities have been determined to be VIEs, but are not required to be consolidated due to our lack of control over their respective operations. At December 31, 2019, total assets and total liabilities of these VIEs were approximately $5.3 million and $0.4 million, respectively.