10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the period ended September 30, 2011

[     ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to ________________

Commission File Number: 000-32905

AMANASU ENVIRONMENT CORPORATION

(Exact name of registrant as specified in its charter)

Nevada	98-0347883
(State of other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

445 Park Avenue Center 10th Floor New York, NY 10022

(Address of principal executive offices)

212-836-4727

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X No   ___

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting copany" in Rule 12b-2 of the Exchange Act.

Large accelerated filer		Accelerated filer
Non-accelerated filer	(Do not check if a smaller reporting company)	Smaller reporting company	X

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ___ No   X

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by sections 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Yes ___ No   ___

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practiable date: 44,000,816 as of November 9, 2011.

AMANASU ENVIRONMENT CORPORATION

QUARTERLY REPORT ON FORM 10-Q

FOR THE PERIOD ENDED JUNE 30, 2011

TABLE OF CONTENTS

Reference	Section Name	Page
PART I
Item 1.	Financial Statements	1
Item 2.	Management's Discussion and Analysis of Financial Conditions and Results of Operations	7
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	9
Item 4.	Controls and Procedures	9
Item 4T.	Controls and Procedures	9
PART II
Item 1.	Legal Proceedings	10
Item 1A.	Risk Factors	10
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	10
Item 3.	Default Upon Senior Securities	10
Item 4.	Submission Of Matters To A Vote Of Security Holders	10
Item 5.	Other Information	10
Item 6.	Exhibits	10
Signatures	Signatures	11

PART I

ITEM 1. FINANCIAL STATEMENTS

The Company's unaudited consolidated financial statements for the three month and six month periods ended September 30, 2011 are included with this Form 10-Q. The unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and footnotes necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. Operating results for the six month period ended September 30, 2011 are not necessarily indicative of the results that can be expected for the year ended December 31, 2011.

1

AMANASU ENVIRONMENT CORPORATION and SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	September 30, 2011			December 31, 2010
	(Unaudited)			(Audited)
ASSETS
Current Assets:
Cash	$	118,098		$	11,876
Certificates of deposit		72,000			267,000
Total current assets		190,098			278,876
Fixed Assets:
Machinery and equipment		25,859			25,859
Less, accumulated depreciation		24,666			23,335
Net fixed assets		1,193			2,524
Other Assets:
Advances to employees		5,000			5,000
Advances to affiliates		98,935			42,917
Total other assets		103,935			47,917
Total Assets	$	295,226		$	329,317
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses	$	7,933		$	33,013
Taxes payable		20,332			19,104
Shareholder advance		2,479			2,330
Other advance		121,364
Deposits		820			771
Total current liabilities		152,928			55,218
Stockholders' Equity:
Common stock:  authorized, 100,000,000 shares of  .001 par value; 44,000,816 shares issued and outstanding		44,001			44,001
Additional paid in capital		4,693,652			4,693,652
Accumulated deficit		(4,599,335	)		(4,467,656	)
Accumulated other comprehensive income		2,059			1,543
Equity attributable to Amanasu Environment Corporation		140,377			271,540
Noncontrolling interest		1,921			2,559
Total stockholders’ equity		142,298			274,099
Total Liabilities and Stockholders' Equity	$	295,226		$	329,317

The accompanying notes are an integral part of these financial statements.

2

AMANASU ENVIRONMENT CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Month Periods Ended September 30, 2011 and 2010

(Unaudited)

	2011			2010
Revenue	$	-		$	-
Expenses		(28,383	)		(130,053	)
Operating Loss		(28,383	)		(130,053	)
Other Income:
Interest income		62			357
Net Loss		(28,321	)		(129,696	)
Net Loss Attributable to Noncontrolling Interest		687			-
Net Loss Attributable to Amanasu Environment Corporation		(27,634	)		(129,696	)
Other Comprehensive Loss:
Gain (loss) on foreign currency conversion		421			1,246
Total Comprehensive Loss	$	(27,213	)	$	(128,450	)
Net Loss Per Share - basic and diluted	$	-		$	-
Weighted average number of shares outstanding		44,000,816			44,000,816

The accompanying notes are an integral part of these financial statements.

3

AMANASU ENVIRONMENT CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Nine Month Periods Ended September 30, 2011 and 2010

(Unaudited)

	2011			2010
Revenue	$	-		$	-
Expenses		(132,762	)		(232,732	)
Operating Loss		(132,762	)		(232,732	)
Other Income:
Interest income		395			2,247
Net Loss		(132,367	)		(230,485	)
Net Loss Attributable to Noncontrolling Interest		688			-
Net Loss Attributable to Amanasu Environment Corporation		(131,679	)		(230,485	)
Other Comprehensive Income:
Gain on foreign currency conversion		516			2,057
Total Comprehensive Loss	$	(131,163	)	$	(228,428	)
Net Loss Per Share - basic and diluted	$	-		$	(.01	)
Weighted average number of shares outstanding		44,000,816			44,000,816

The accompanying notes are an integral part of these financial statements

4

AMANASU ENVIRONMENT CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Six Month Periods Ended September 30, 2011 and 2010

(Unaudited)

	2011			2010
CASH FLOWS FROM OPERATIONS:
Net loss	$	(131,679	)	$	(230,485	)
Adjustments to reconcile net loss to net cash consumed by operating activities:
Charges not requiring the outlay of cash:
Depreciation		1,331			1,331
Noncontrolling interest in subsidiary loss		(688	)		-
Changes in assets and liabilities:
(Decrease) increase in accounts payable and accrued expenses		(25,435	)		9,794
Increase in other advance		115,165			-
Net Cash Consumed By Operating Activities		(41,306	)		(219,360	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Redemptions of certificates of deposit		195,000			224,000
Advance to employee		-			(5,000	)
Advances to affiliates		(53,260	)		-
Net Cash Provided By Investing Activities		141,740			219,000
CASH FLOWS FROM FINANCING ACTIVITIES:		-			-
Effect on Cash of Exchange Rate Changes		5,788			2,106
Net Change in Cash Balances		106,222			1,746
Cash balance, beginning of period		11,876			8,467
Cash balance, end of period	$	118,098		$	10,213

The accompanying notes are an integral part of these financial statements.

5

AMANASU ENVIRONMENT CORPORATION and SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2011

(Unaudited)

1.  BASIS OF PRESENTATION

The unaudited interim consolidated financial statements of Amanasu Environment Corporation and Subsidiaries ("the Company") as of September 30, 2011 and 2010 and for the three and  nine month periods ended September 30, 2011 and 2010, have been prepared in accordance with accounting principles generally accepted in the United States of America.  In the opinion of management, such information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of such periods.  The results of operations of the nine month period ended September 30, 2011 are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2011.

Certain information and disclosures normally included in the notes to financial statements have been condensed or omitted as permitted by the rules and regulations of the Securities and Exchange Commission, although the Company believes the disclosure is adequate to make the information presented not misleading.  The accompanying unaudited financial statements should be read in conjunction with the financial statements of the Company included in the annual report on Form 10-K for the year ended December 31, 2010.

2.  SUPPLEMENTAL CASH FLOWS INFORMATION

There were no cash payments for interest or income taxes during either of the periods presented.  In addition, there were no non-cash investing or financing activities during these periods.

3.  GOING CONCERN UNCERTAINTY

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  As shown in the financial statements, the Company had an accumulated deficit at September 30, 2011, and a record of continuing losses.  These factors raise substantial doubt about the ability of the Company to continue as a going concern.  The financial statements do not include adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue in operation.

4.  EXPENSES

Major items included in expense are presented below.

	NINE MONTH PERIODS				THREE MONTH PERIODS
	2011		2010		2011		2010
Consulting fees	$	32,600	$	28,900	$	-	$	2,600
Travel		41,462		44,886		16,511		22,783
Rent		41,913		29,599		5,432		-

6

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Form 10Q contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a companies' annual report on Form 10-KSB and other filings made by such company with the United States Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements.

The following discussion should be read in conjunction with the Company's Financial Statements, including the Notes thereto, appearing elsewhere in this Quarterly Report and in the Annual Report for the year ended December 31, 2010.

COMPANY OVERVIEW

History

Amanasu Environment Corporation ("Company") was incorporated in the State of Nevada on February 22, 1999 under the name of Forte International Inc. On March 27, 2001, the Company's name was changed to Amanasu Energy Corporation, and on November 13, 2002, its name was changed to Amanasu Environment Corporation.

It has acquired the exclusive, worldwide license rights to a high temperature furnace, a hot water boiler, and ring-tube desalination methodology. At this time, the Company is not engaged in the commercial sale of any of its licensed technologies. Its operations to date have been limited to acquiring the technologies, conducting limited product marketing, and testing the technologies for commercial sale. For each such technology, proto-type or demonstrational units have been constructed by each licensor or inventor of the technology. The Company has conducted various internal tests on these units to determine the commercial viability of the underlying technologies. As a result of such testing, the Company believes that the products are not commercially ready for sale, and that product refinements are necessary with respect to each of the technologies. In addition, the Company may seek joint venture or other affiliations with companies competitive in each respective product market whereby the Company can capitalize on the existing infrastructure of such other companies, such as product design and engineering, marketing and sales, and warranty and post-warranty service and repair. The Company believes that its marketing efforts to sell any of its products will be limited until such time as it can complete the refinements of its technologies. The Company can not predict whether it will be successful in developing commercial products, or establishing affiliations with any operating company.

On June 8, 2000, the Company obtained the exclusive, worldwide license to a technology that disposes of toxic and hazardous wastes through a proprietary, high temperature combustion system, known as the Amanasu Furnace. The rights were obtained pursuant to a license agreement with Masaichi Kikuchi, the inventor of the technology, for a period of 30 years. The Company issued 1,000,000 share of common stock to the inventor and 200,000 shares of common stock to a director of the inventor's company. Under the licensing agreement; the Company is required to pay the licensor a royalty of two percent of the gross receipts from the sale of products using the technology. If the Company fails to comply with any provision of the agreement after a 90-day notice period, the licensor may terminate the agreement.

Effective September 30, 2002, the Company obtained the exclusive, worldwide license to a hot water boiler technology that incinerates waste tires in a safe and non-polluting manner and extracts heat energy from the incineration process. The rights were obtained pursuant to a license agreement with Sanyo Kogyo Kabushiki Gaisha and Ever Green Planet Corporation, both Japanese companies, for a period of 30 years. As consideration for this acquisition, the Company paid the licensors $250,000, of which the Company's President paid $95,000, issued to them 600,000 shares of common stock, and issued to an affiliate of the licensors 50,000 shares of common stock. The licensors are entitled to receive a two percent royalty on the gross receipts from the sale of the products related to the technology. If the Company fails to comply with any provision of the agreement after a 90-day notice period, the licensor may terminate the agreement.

On June 30, 2003, the Company acquired the exclusive worldwide rights to produce and market a patented technology that purifies seawater, and removes hazardous pollutants from wastewater. The rights were obtained pursuant to a license agreement with Etsuro Sakagami, the inventor, for a period of 30 years. As consideration for obtaining the license, the Company issued 1,000,000 shares to the inventor, and 50,000 shares to a finder. The licensor is entitled to receive a two percent royalty on the gross receipts from the sale of the products related to the technology. If the Company fails to comply with any provision of the agreement after a 90-day notice period, the licensor may terminate the agreement.

7

Current

During the fiscal year ended December 31, 2008, Chairman & Chief Executive Officer Atsushi Maki, set a future capital raising goal of $30,000,000 to increase the Company's potential by entering into the NASDAQ global market. The Company's main objective has not changed for the coming fiscal year ending December 31, 2011.

Aside from capital raising efforts, the company continues to support Amanasu Maritech Corporation, in development and required regulatory approval for Commercial Cargo Ship Ballast Water Purification System. The Company and Amanasu Maritech Corporation are currently working through the approval process of this type of product with the Japanese regulatory bodies. Also required documentation, and translations are being prepared for additional approval by the main global governing body for marine technologies, IMO the International Marine Organization. The Company also continues to look for partners and interested parties to further develop existing business' and technolgies acquired by Amanasu Maritech Corporation, the Company's child company.

The Company's principal offices were relocated on April 1, 2010 from 115 East 57th Street 11th Floor New York, NY 10022, to 445 Park Avenue Center 10th floor New York, NY 10022 Telephone: 212-836-4727.  The Tokyo branch has relocated from 1-3-38 Roppongi, Minatoku, Tokyo, 106-0032, Japan to 1-7-10 Motoakasaka Building 9th Floor Motoakasaka Minato-Ku Tokyo Telephone: 03-5413-7322.

The Company is concentrating its efforts into Amanasu Maritech Corporation, and as a result will not put further resources into Amanasu Maritech Corporation's child companies Amanasu Echo Frontier, Amanasu Energy, Petstyle, Amanasu Project Support, and BJSS during the fisical year ending December 31, 2011.

PRODUCTS

Currently the Company is supporting Amanasu Maritech Corporation in development and required regulatory approval for a Commercial Cargo Ship Ballast Water Purification System. No licensing agreements with partners have been made at this time, as the Company is also in the process of raising capital for this project. Currently the company is negotiating with its partners for a world wide manufacturing and sales agreement. The Company cannot guarantee if the negotiations will succeed, or

PLAN OF OPERATION

The Company has 2 main objective's during the fiscal year ending December 31, 2011. The Company will continue in its goal to meet the capital objective of $30,000,000 in the near future. Currently the company is exploring various potential investment partners in Japan, as well as China and Korea. The Company cannot predict whether it will be successful with its objective. The Company

Secondly the company will support Amanasu Maritech Corporation's efforts on entering into marine technologies. The Company will assist an approximately 24 month design, and approval process for the product from at least 2 regulatory bodies: the Japanese Government, and the IMO (International Marine Organization). This approval process requires capital for additional product testing, documentation, and documentation translations. The Company believes that Amanasu Maritech Corporation's most significant hurdle will be in capital raising. The Company has already initiated documentation and application processes, and is now looking for capital to fund the project. The Company cannot predict whether it will be successful with its capital raising efforts.

FINANCIAL RESULTS

Total Current Assets for the quarter ended September 30, 2011 was $190,098 compared to $278,876 for the fiscal period ending December 31, 2010. The decrease is due primarily to the transfer of funds from certificate of deposits to expense accounts, and the subsequent use of those funds for operational expenses.

Total Other Assets for the quarter ended September 30, 2011 was $103,935 compared to $47,917 for the fiscal period ending December 31, 2010. The increase is due primarily to increase in advances to employees.

Interest Income for the quarter ended September 30, 2011 was $ 62 compared to $ 357 for the same period of 2010. The decrease is due primarily to the decrease in interest rates during 2010 as well as the decreased balance in certificate of deposits.

Net Cash Consumed By Operating Activities for the quarter ended September 30, 2011 was $(41,306) compared to $(219,360) for the same period of 2010. The decrease is due primarily to the absense of Amanasu Water Corporation, of which ownership was transferred to Amanasu Techno Holdings with an agreement executed on April 27th, 2009.

8

LIQUIDITY AND CAPITAL RESOURCES

Other than the provision of alternating business planning costs discussed above, the Company's cash requirements for the next 12 months are estimated to be $165,000. This amount is comprised of the following estimate expenditures; $100,000 in annual salaries for office personnel, office expenses and travel, $30,000 for rent, $20,000 for professional fees, and $15,000 for miscellaneous expenses. The Company has sufficient cash on hand to support its overhead for the next 12 months but no material commitments for capital at this time other than as described above. The Company and/or Amanasu Holdings will need to issue and sell shares to gain capital for operations.

OFF-BALANCE SHEET ARRANAGEMENTS

The Company has no off-balance sheet arrangements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not Applicable.

ITEM 4. CONTROLS AND PROCEDURES

The Company carried out an evaluation of the effectiveness of the Company's disclosure controls and procedures (as defined by Rule 13a-15(e) under the Securities Exchange Act of 1934) under the supervision and with the participation of the Company's Chief Executive Officer and Chief Financial Officer as of a date within 90 days of the filings date of Form 10Q. Based on and as of the date of such evaluation, the aforementioned officers have concluded that the Company's disclosure controls and procedures have functioned effectively so as to provide information necessary whether:

(i) this quarterly report on Form 10 Q contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report on Form 10 Q, and (ii) the financial statements, and other financial information included in this quarterly report on Form 10 Q, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this quarterly report on Form 10 Q.

ITEM 4T. CONTROLS AND PROCEDURES

CHANGES IN INTERNAL CONTROLS

There have been no significant changes in the Company's internal controls or in other factors since the date of the Chief Executive Officer's, Chief Financial Officer's and Chief Accounting Officer's evaluation that could significantly affect these internal controls, including any corrective actions with regards to significant deficiencies and material weaknesses.

9

PART II

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

None.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

Furnish the Exhibits required by Item 601 of Regulation S-K (229.407 of this chapter).

31	Certification Pursuant To Section 302 Of The Sarbanes-Oxley Act Of 2002
32	Certification Pursuant To Section 906 Of The Sarbanes-Oxley Act Of 2002
101.ins	XBRL Instance
101.xsd	XBRL Schema
101.cal	XBRL Calculation
101.def	XBRL Definition
101.lab	XBRL Label
101.pre	XBRL Presentation

10

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused his report to be signed on its behalf by the undersigned thereunto duly authorized.

Amanasu Environment Corporation

Date: November 9, 2011

/s/ Atsushi Maki

Atsushi Maki

Chief Executive Officer

Chief Financial Officer

Chief Accounting Officer

11

EX-31

Exhibit 31

AMANASU ENVIRONMENT CORPORATION

Certification of Chairman and Chief Executive Officer

Pursuant to Rule 13a-14(a) of the Exchange Act

As Adopted Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Atsushi Maki, certify that:

1.   I have reviewed this quarterly report on Form 10-Q of Amanasu Environment Corporation;

2.   Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.   Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.   I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a.   Designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b.   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.   Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.   d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;

5.   I have disclosed, based on our most recent evaluation, to the registrant's auditors and registrant's board of directors:

a.   All significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and

b.   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and

6.   I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Dated: November 9, 2011

By: /s/ Atsushi Maki

Atsushi Maki

Chairman & Chief Executive Officer

Chief Financial Officer

EX-32

Exhibit 32

AMANASU ENVIRONMENT CORPORATION

Certification of Chairman and Chief Executive Officer

Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of the registrant certifies, to the best of his knowledge, that the registrant's Quarterly Report on Form 10Q for the period ended SMarch 31, 2011 (the "Form 10Q") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Form 10Q, fairly presents, in all material respects, the financial condition and results of operations of the registrant.

Dated: November 9, 2011

By: /s/ Atsushi Maki

Atsushi Maki

Chairman & Chief Executive Officer

Chief Financial Officer

XML

CONSOLIDATED BALANCE SHEETS PARENTHETICAL (USD $)	Sep. 30, 2011	Dec. 31, 2010
Common stock shares authorized	100,000,000	100,000,000
Common stock shares par value	$ 0.001	$ 0.001
Common stock shares issued	44,000,816	44,000,816
Common stock shares outstanding	44,000,816	44,000,816

XML

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Revenue
Expenses	(28,383)	(130,053)	(132,762)	(232,732)
Operating Loss	(28,383)	(130,053)	(132,762)	(232,732)
Interest income	62	357	395	2,247
Net Loss	(28,321)	(129,696)	(132,367)	(230,485)
Net Loss Attributable to Noncontrolling Interest	687		688
Net Loss Attributable to Amanasu Environment Corporation	(27,634)	(129,696)	(131,679)	(230,485)
Other Comprehensive Loss:
Gain (loss) on foreign currency conversion	421	1,246	516	2,057
Total Comprehensive Loss	$ (27,213)	$ (128,450)	$ (131,163)	$ (228,428)
Net Loss Per Share - basic and diluted				$ (0.01)
Weighted average number of shares outstanding - Basic	44,000,816	44,000,816	44,000,816	44,000,816
Weighted average number of shares outstanding - Diluted	44,000,816	44,000,816	44,000,816	44,000,816

XML

Document and Entity Information	3 Months Ended
	Sep. 30, 2011	Nov. 09, 2011
Document and Entity Information
Entity Registrant Name	AMANASU ENVIRONMENT CORP
Document Type	10-Q
Document Period End Date	Sep. 30, 2011
Amendment Flag	false
Entity Central Index Key	0001142801
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		44,000,816
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q3

XML

Going Concern Uncertainty

3 Months Ended

Sep. 30, 2011

Organization, Consolidation and Presentation of Financial Statements

Liquidity Disclosure [Policy Text Block]

3.  GOING CONCERN UNCERTAINTY

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  As shown in the financial statements, the Company had an accumulated deficit at September 30, 2011, and a record of continuing losses.  These factors raise substantial doubt about the ability of the Company to continue as a going concern.  The financial statements do not include adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue in operation.

XML

Basis of Presentation

3 Months Ended

Sep. 30, 2011

Accounting Policies

Basis of Presentation and Significant Accounting Policies [Text Block]

1.  BASIS OF PRESENTATION

The unaudited interim consolidated financial statements of Amanasu Environment Corporation and Subsidiaries ("the Company") as of September 30, 2011 and 2010 and for the three and  nine month periods ended September 30, 2011 and 2010, have been prepared in accordance with accounting principles generally accepted in the United States of America.  In the opinion of management, such information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of such periods.  The results of operations of the nine month period ended September 30, 2011 are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2011.

Certain information and disclosures normally included in the notes to financial statements have been condensed or omitted as permitted by the rules and regulations of the Securities and Exchange Commission, although the Company believes the disclosure is adequate to make the information presented not misleading.  The accompanying unaudited financial statements should be read in conjunction with the financial statements of the Company included in the annual report on Form 10-K for the year ended December 31, 2010.

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Expenses

3 Months Ended

Sep. 30, 2011

Expenses {1}

Expenses

4.  EXPENSES

Major items included in expense are presented below.

	NINE MONTH PERIODS				THREE MONTH PERIODS
	2011		2010		2011		2010
Consulting fees	$	32,600	$	28,900	$	-	$	2,600
Travel		41,462		44,886		16,511		22,783
Rent		41,913		29,599		5,432		-

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Net loss	$ (131,679)	$ (230,485)
Adjustments to reconcile net loss to net cash consumed by operating activities:
Depreciation	1,331	1,331
Noncontrolling interest in subsidiary loss	(688)
Changes in assets and liabilities:
(Decrease) increase in accounts payable and accrued expenses	(25,435)	9,794
Increase in other advance	115,165
Net Cash Consumed By Operating Activities	(41,306)	(219,360)
Redemptions of certificates of deposit	195,000	224,000
Advance to employee		(5,000)
Advances to affiliates	(53,260)
Net Cash Provided By Investing Activities	141,740	219,000
CASH FLOWS FROM FINANCING ACTIVITIES:
Effect on Cash of Exchange Rate Changes	5,788	2,106
Net Change in Cash Balances	106,222	1,746
Cash balance, beginning of period	11,876	8,467
Cash balance, end of period	$ 118,098	$ 10,213

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Supplemental Cash Flows Information

3 Months Ended

Sep. 30, 2011

Statement of Cash Flows, Supplemental Disclosures

Cash Flow, Supplemental Disclosures [Text Block]

2.  SUPPLEMENTAL CASH FLOWS INFORMATION

There were no cash payments for interest or income taxes during either of the periods presented.  In addition, there were no non-cash investing or financing activities during these periods.

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CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2011	Dec. 31, 2010
Current Assets:
Cash	$ 118,098	$ 11,876
Certificates of deposit	72,000	267,000
Total current assets	190,098	278,876
Fixed Assets:
Machinery and equipment	25,859	25,859
Less, accumulated depreciation	24,666	23,335
Net fixed assets	1,193	2,524
Other Assets:
Advances to employees	5,000	5,000
Advances to affiliates	98,935	42,917
Total other assets	103,935	47,917
Total Assets	295,226	329,317
Current Liabilities:
Accounts payable and accrued expenses	7,933	33,013
Taxes payable	20,332	19,104
Shareholder advance	2,479	2,330
Other advance	121,364
Deposits	820	771
Total current liabilities	152,928	55,218
Common stock: authorized, 100,000,000 shares of .001 par value; 44,000,816 shares issued and outstanding	44,001	44,001
Additional paid in capital	4,693,652	4,693,652
Accumulated deficit	(4,599,335)	(4,467,656)
Accumulated other comprehensive income	2,059	1,543
Equity attributable to Amanasu Environment Corporation	140,377	271,540
Noncontrolling interest	1,921	2,559
Total stockholders' equity	142,298	274,099
Total Liabilities and Stockholders' Equity	$ 295,226	$ 329,317