Board Of Aldermen

Property, Plant and Equipment

Property, plant and equipment, which includes principally the water utility assets of the
Company’s utility subsidiaries, is recorded at cost plus an allowance for funds used during
construction on major, long-term projects and includes property funded with contributions
in aid of construction.

Maintenance, repairs and minor improvements are charged to expense as incurred. Improve-
ments which significantly increase the value of property, plant and equipment are capitalized.

PENNICHUCK CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Description of Business and Summary of Significant Accounting Policies

Description of Business

PENNICHUCK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows - Continued
For the Years Ended December 31, 2021 and 2020
{in thousands)

2021 2020

Cash Flows From Financing Activities:

Borrowings (payments) on lines of credit, net S 1,128 S (3,803)

Payments on long-term debt (6,046) (65,649)

Contributions in aid of construction 40 35

Proceeds from long-term borrowings 9,614 87,290

Debt issuance costs (302) (11,922)

PENNICHUCK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows
For the Years Ended December 31, 2021 and 2020
{in thousands)

Balance as of
January 1, 2020

Net loss

PENNICHUCK CORPORATION AND SUBSIDIARIES

Consolidated Statement of Changes in Stockholder's Equity
For the Year Ended December 31, 2020
{in thousands, except per share data)

Accumulated

Other comprehensive income:

Unrealized loss on derivatives,

net of taxes of $(63)

Reclassification of net income
realized in net loss, net of

taxes of $27

Balance as of
December 31, 2020

PENNICHUCK CORPORATION AND SUBSIDIARIES
Consolidated Statement of Changes in Stockholder's Equity (Deficit)

For the Year Ended December 31, 2021
(in thousands, except per share data)

Accumulated

Additional Other
Common Stock Paidin Accumulated Comprehensive
Shares Amount Capital Deficit Income Total

Balance as of
January 1, 2021 1,000 S - S 30,561 S (30,403) S 254 $ 412
Common dividends declared - - (279) - (279)
Net loss - - - (3,699) - (3,699)
Other comprehensive income:

PENNICHUCK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income {Loss)
For the Years Ended December 31, 2021 and 2020
(in thousands)

2021 2020

Net Loss $ (3,699) $ (1,984)
Other Comprehensive Income {Loss):

Unrealized gain (loss) on derivatives 72 (149)

Reclassification of net income (loss) realized in net loss {68) 42

Income tax provision relating to

other comprehensive income {loss) 98 43

Other Comprehensive Income (Loss) 102 (64)
Comprehensive Loss $ (3,597) $ (2,048)

PENNICHUCK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income (Loss)
For the Years Ended December 31, 2021 and 2020
(in thousands)

PENNICHUCK CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets - Continued
As of December 31, 2021 and 2020
{in thousands, except share data)

PENNICHUCK CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets
As of December 31, 2021 and 2020
(in thousands, except share data)

2021 2020
ASSETS

Property, Plant and Equipment, net S$ 245,197 S 242,469