0001354488-14-005904.txt : 20141119 0001354488-14-005904.hdr.sgml : 20141119 20141119141145 ACCESSION NUMBER: 0001354488-14-005904 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20140930 FILED AS OF DATE: 20141119 DATE AS OF CHANGE: 20141119 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMANASU ENVIRONMENT CORP CENTRAL INDEX KEY: 0001142801 STANDARD INDUSTRIAL CLASSIFICATION: HAZARDOUS WASTE MANAGEMENT [4955] IRS NUMBER: 980347883 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-32905 FILM NUMBER: 141234563 BUSINESS ADDRESS: STREET 1: 115 EAST 57TH STREET STREET 2: 11TH FL CITY: NEW YORK STATE: NY ZIP: 10022 BUSINESS PHONE: 6462741274 MAIL ADDRESS: STREET 1: 115 EAST 57TH STREET STREET 2: 11TH FL CITY: NEW YORK STATE: NY ZIP: 10022 FORMER COMPANY: FORMER CONFORMED NAME: AMANASU ENVIRONMENT CORP DATE OF NAME CHANGE: 20030401 FORMER COMPANY: FORMER CONFORMED NAME: AMANASU ENERGY CORP DATE OF NAME CHANGE: 20010618 10-Q 1 amsu_10q.htm QUARTERLY REPORT amsu_10q.htm


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
þQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the period ended September 30, 2014
 
oTRANSITION 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
(A Development Stage Company)
(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)
 
604 790 8799
(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 þ No o
 
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 company" in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer
o
 
Accelerated filer
o
Non-accelerated filer
o
 
Smaller reporting company
þ
(Do not check if a smaller reporting company)
   
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes oNo þ
 
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 o  No o
 
APPLICABLE ONLY TO CORPORATE ISSUERS:
 
Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practicable date: 44,100,816 as of November 14, 2014.






 
 
 
 

 

AMANASU ENVIRONMENT CORPORATION
(A Development Stage Company)
QUARTERLY REPORT ON FORM 10-Q
FOR THE PERIOD ENDED SEPTEMBER 30, 2014
 
TABLE OF CONTENTS
 
Reference
Section Name
Page
PART I
   
Item 1.
Financial Statements
4
Item 2.
Management's Discussion and Analysis of Financial Conditions and Results of Operations
7
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
10
Item 4.
Controls and Procedures
10
Item 4T.
Controls and Procedures
10
PART II
   
Item 1.
Legal Proceedings
11
Item 1A.
Risk Factors
11
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
11
Item 3.
Default Upon Senior Securities
11
Item 4.
Submission Of Matters To A Vote Of Security Holders
11
Item 5.
Other Information
11
Item 6.
Exhibits
11
Signatures
Signatures
12

 
 
 
2

 

 
PART I
 
ITEM 1. FINANCIAL STATEMENTS
 
The Company's unaudited consolidated financial statements for the three and nine month periods ended September 30, 2014 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 three and nine month periods ended September 30, 2014 are not necessarily indicative of the results that can be expected for the year ended December 31, 2014.
 
 
 
3

 

AMANASU ENVIRONMENT CORPORATION
(A Development Stage Company)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
   
September 30,
2014
   
December 31,
2013
 
ASSETS
           
Current Assets:
           
Cash
 
$
4,552
   
$
12,842
 
Total current assets
   
4,552
     
12,842
 
                 
Fixed Assets:
               
Automotive equipment
   
25,859
     
25,859
 
Less, accumulated depreciation
   
(25,859
   
(25,859
Net fixed assets
   
-
     
-
 
                 
Total Assets
 
$
4,552
   
$
12,842
 
                 
                 
LIABILITIES AND STOCKHOLDERS’ DEFICIT
               
Current Liabilities:
               
Accounts payable and accrued expenses
 
$
31,364
   
$
49,376
 
Payroll and other taxes payable
   
30,768
     
32,056
 
Loans from shareholder
   
18,073
     
17,781
 
Amounts due to related parties
   
77,101
     
13,548
 
Total current liabilities
   
157,306
     
112,761
 
 
Commitments and contingencies – Note 3
 
               
Stockholders’ Deficit:
               
Common stock: authorized 100,000,000 shares of .001 par value; 44,100,816shares issued and outstanding
   
44,101
     
44,101
 
Additional paid in capital
   
4,793,552
     
4,793,552
 
Deficit accumulated during development stage
   
(1,115,907
)
   
(1,062,616
)
Deficit accumulated prior to development stage
   
(3,879,122
)
   
(3,879,122
)
Accumulated other comprehensive income
   
4,960
     
4,476
 
                 
Total Amanasu Environment Corporation stockholders' deficit
   
(152,416
)
   
(99,609
)
Non controlling interest in subsidiary
   
(338
)
   
(310
)
Total stockholders' deficit
   
(152,754
)
   
(99,919
)
Total Liabilities and Stockholders' Deficit
 
$
4,552
   
$
12,842
 

 
The accompanying notes are an integral part of these financial statements.
 
 
 
4

 
 
AMANASU ENVIRONMENT CORPORATION
(A Development Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Nine Month Periods Ended September 30, 2014 and 2013
(Unaudited)
 
                           
January 1,
 
                           
2009
 
                           
(Date of
 
                           
Commencement
 
                           
of
 
                           
Development
 
                           
Stage) to
 
   
Three Month Periods
   
Nine Month Periods
   
September 30,
 
   
2014
   
2013
   
2014
   
2013
   
2014
 
Revenue
  $ -     $ -     $ -     $ -     $ -  
Expenses
    (1,200     60,298       51,630       116,123       1,153,724  
Operating income (loss)
    1,200       (60,298 )     (51,630 )     (116,123 )     (1,153,724 )
                                         
                                         
Other income (expense)
    (98     -       (98     388       290  
Interest income
    (1     -       -       -       13,107  
Debt forgiveness
    -       -       -       -       13,781  
Interest expense
    (891 )     -       (1,563 )     -       (1,563 )
                                         
Net income (loss)
    210       (60,298 )     (53,291 )     (115,735 )     (1,128,109 )
                                         
Net Income Attributable to Noncontrolling Interest
    -       -       -       -       12,203  
                                         
Net Income (Loss) Attributable to Amanasu Environment Corporation
    210       (60,298 )     (53,291 )     (115,735 )     (1,115,906 )
                                         
Other Comprehensive Loss:
                                       
Gain (loss) on foreign currency conversion
    93       (51     (338 )     987       11,029  
Attributable to noncontrolling interest
    (11       4       28       (90     -  
Net Other Comprehensive Income(Loss)
    82       (47     (310 )     897       11,029  
                                         
Total Comprehensive Income (Loss)
  $ 292     $ (60,345 )   $ (53,600 )   $ (114,838 )   $ (1,104,877 )
                                         
Net Loss Per Share - basic and diluted
  $ -     $ -     $ -     $ -          
Weighted average number of shares outstanding
    44,100,816       44,021,468       44,100,816       44,007,776          
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
5


 
 AMANASU ENVIRONMENT CORPORATION
(A Development Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Month Periods Ended September 30, 2014 and 2013
(Unaudited)
 
   
2014
   
2013
   
January 1,
2009
(Date of
Commencement of
Development Stage) to
September 30,
2014
 
CASH FLOWS FROM OPERATIONS:
                 
Net loss
 
$
(53,291
)
 
$
(115,735
)
 
$
(1,128,110
)
Adjustments to reconcile net loss to net cash consumed by operating activities:
                       
Charges not requiring the outlay of cash:
                       
Depreciation
   
-
     
-
     
6,074
 
Cancellation of debts
   
-
     
-
     
(13,781
)
Write offs of bad debts
   
-
     
-
     
138,931
 
Increase in related party debt
   
20,000
     
-
     
20,000
 
                         
Changes in assets and liabilities:
                       
Increases (decrease) in accounts payable and accrued expenses
   
(18,012
   
20,453
     
9,630
 
Increases in taxes payable
   
-
     
-
     
34,676
 
Increase in employee loan
   
-
     
-
     
(2,900
)
                         
Net Cash Consumed By Operating Activities
   
(51,303
)
   
(95,282
)
   
(935,480
)
                         
CASH FLOWS FROM INVESTING ACTIVITIES:
                       
Cash transferred on sale of subsidiary
   
-
     
-
     
(270
)
Redemptions of certificates of deposit
   
-
     
3,000
     
695,000
 
Loans to officer
   
-
     
-
     
(68,635
)
Officer repayments
   
-
     
-
     
53,260
 
Net Cash Provided By Investing Activities
   
-
     
3,000
     
679,355
 
                         
CASH FLOWS FROM FINANCING ACTIVITIES:
                       
Advances from shareholder
   
-
     
50,000
     
50,000
 
 Repayment from shareholder advances
   
  -
     
  -
     
18,104
 
Officer advances
   
35,750
     
-
     
55,750
 
Sales of capital stock
   
-
     
100,000
     
100,000
 
Advance from affiliate
   
7,071
     
25,048
     
15,046
 
Short term loans
   
-
     
-
     
14,212
 
Net Cash Provided By Financing Activities
   
42,821
     
175,048
     
253,112
 
                         
Effect on Cash of Exchange Rate Changes
   
192
     
1
     
(18
                         
Net Changes in Cash Balances
   
(8,290
)
   
82,767
     
(3,031
Cash balance, beginning of period
   
12,842
     
3,600
     
7,583
 
Cash balance, end of period
 
$
4,552
   
$
86,367
   
$
4,552
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
6

 
 
AMANASU ENVIRONMENT CORPORATION
(A Development Stage Company)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2014
(Unaudited)


1. BASIS OF PRESENTATION
 
The unaudited interim consolidated financial statements of Amanasu Environment Corporation ("the Company") as of September 30, 2014 and 2013 and for the three and nine month periods ended September 30, 2014 and 2013, and for the period January 1, 2009 (date of commencement of development stage) to September 30, 2014., 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 of only 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, 2014 are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2014.

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, 2013.

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, 2014, 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. RELATED PARTY TRANSACTIONS

During the nine month period ended September 30, 2014 the Company received an advance in the amount of $7,071 from  Amanasu Techno Holdings Inc., a sister company, and $35,750 from the wife of the Company president.  In addition, there was $20,000 accrued for administrative services to the wife of the Company president.   
 
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.
 
 
7

 
 
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, 2013.
 
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.
 
Current
 
During recent years, the Company has embarked on a mission to achieve a 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, 2014.
 
Aside from capital raising efforts, the Company has been supporting Amanasu Maritek Corporation, in the development and required regulatory approval for the Commercial Cargo Ship Ballast Water Purification System. The Company and Amanasu Maritek Corporation have been working through the approval process of this type of product with the Japanese regulatory bodies. Also, required documentation, and translations have been prepared for additional approval by the main global governing body for marine technologies, IMO the International Marine Organization. So far, the Company has been unable to obtain approval for the Commercial Cargo Ship Ballast Water Purification System. In adhering to the guidelines set by the IMO and the Japanese Ministry of Land, Infrastructure, Transport and Tourism, the Company needs to collaborate with a shipbuilding company to conduct experiments and tests, requiring 2-3 years and a minimum budget of $10,000,000. Due to a lack of resources, the Company is currently seeking partners who are interested in developing such businesses and technologies acquired by Amanasu Maritek Corporation, the Company's subsidiary.
 
Furthermore, the Company is making plans to enter the reforestation industry in Japan, through Amanasu Maritek Corporation. Following the Great East Japan Earthquake, approximately 1 million houses need to be rebuilt, causing wood to be in high demand. Also, the Japanese Government currently subsidizes new firms entering the reforestation industry, giving the Company an opportunity to enter an industry that is reflective of its vision.
 
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: 604-790-8799. The Tokyo branch has relocated from 1-7-10 Motoakasaka Minato-Ku Tokyo Japan to 3-7-11 Azabujuubann Minato-Ku Tokyo Japan. Telephone: 03-3451-8870.
 
 
8

 
 
PRODUCTS
 
Currently the Company is supporting Amanasu Maritek 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 worldwide manufacturing and sales agreement. The Company cannot guarantee if the negotiations will succeed.
 
PLAN OF OPERATION
 
The Company has 3 main objectives during the fiscal year ending December 31, 2014. Firstly, the Company will continue in its goal to meet the capital objective of $30,000,000. Currently the company is exploring various potential investment partners in Japan, as well as China. The Company cannot predict whether it will be successful with its objective.
 
Secondly the Company will continue to support the efforts of Amanasu Maritek Corporation to enter into marine technologies. The Company will assist for another year in the 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 Maritek 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.
 
Thirdly, the Company is making plans to enter the reforestation industry in Japan, through Amanasu Maritek Corporation. The Company must first reach an agreement with the relevant government agencies in Japan. The Company intends to focus on the prefectures of Miyagi, Iwate and Niigata and begin operations within 12 months. The Company cannot predict whether it will be successful with its objective.
 
FINANCIAL RESULTS
 
Total current assets as of September 30, 2014 was $4,552, compared to $12,842 as of December 31, 2013.
 
Total current liabilities as of September 30, 2014 was $157,306, compared to $112,761 as of December 31, 2013.
 
The net income of the three month period ended September 30, 2014 was $210, compared to a net loss of $60,298 for the same period of 2013. The net income resulted from corrections of estimates made in previous quarters.  The Company experienced a $53,291 loss during the nine month period ended September 30, 2014 compared with a loss of $115,935 during the same period of 2013.  This improvement is the result of reductions in several categories of administrative expenses, including rent, consulting, and other fees. 

LIQUIDITY AND CAPITAL RESOURCES
 
Other than the provision of alternating business planning costs discussed on PLAN OF OPERATION, 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. There are no material commitments for capital at this time other than as described above. The Company and/or Amanasu Maritek Corporation will need to issue and sell shares to gain capital for operations.
 
OFF-BALANCE SHEET ARRANAGEMENTS
 
The Company has no off-balance sheet arrangements.

 
 
9

 
 
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 
Not Applicable.
 
ITEM 4. MANAGEMENT'S REPORT ON DISCLOSURE 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 not 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.

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.
 
 
 
10

 
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).
 
Exhibit 31
Certification Pursuant To Section 302 Of The Sarbanes-Oxley Act Of 2002.
   
Exhibit 32
Certification Pursuant To Section 906 Of The Sarbanes-Oxley Act Of 2002.
   
101 INS
XBRL Instance Document*
   
101 SCH
XBRL Schema Document*
   
101 CAL
XBRL Calculation Linkbase Document*
   
101 DEF
XBRL Definition Linkbase Document*
   
101 LAB
XBRL Labels Linkbase Document*
   
101 PRE
XBRL Presentation Linkbase Document*
 
* The XBRL related information in Exhibit 101 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.
 
 
 
11

 
 
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
 
       
November 18, 2014
By:
/s/ Atsushi Maki  
   
Atsushi Maki
 
   
Chief Executive Officer
 
   
Chief Financial Officer
Chief Accounting Officer
 
 
 
 
 

 

 
EX-31 2 ex_31.htm CERTIFICATION ex_31.htm

 
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.
 
     
       
November 18, 2014
By:
/s/ Atsushi Maki  
    Atsushi Maki  
    Chairman & Chief Executive Officer  
    Chief Financial Officer  

EX-32 3 ex_32.htm CERTIFICATION ex_32.htm

 
                                                                  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 September 30, 2014 (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.
 
 
     
       
November 18, 2014
By:
/s/ Atsushi Maki  
    Atsushi Maki  
    Chairman & Chief Executive Officer  
    Chief Financial Officer  
 

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In the opinion of management, such information contains all adjustments, consisting of only 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, 2014 are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2014.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">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. 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4. RELATED PARTY TRANSACTIONS
9 Months Ended
Sep. 30, 2014
Disclosure Text Block [Abstract]  
4. RELATED PARTY TRANSACTIONS

During the nine month period ended September 30, 2014 the Company received an advance in the amount of $7,071 from  Amanasu Techno Holdings Inc., a sister company, and $35,750 from the wife of the Company president.  In addition, there was $20,000 accrued for administrative services to the wife of the Company president.   

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3. GOING CONCERN UNCERTAINTY
9 Months Ended
Sep. 30, 2014
Disclosure Text Block [Abstract]  
2. 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, 2014, 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 16 R2.htm IDEA: XBRL DOCUMENT v2.4.0.8
CONSOLIDATED BALANCE SHEETS (USD $)
Sep. 30, 2014
Dec. 31, 2013
Current Assets:    
Cash $ 4,552 $ 12,842
Total current assets 4,552 12,842
Fixed Assets:    
Automotive equipment 25,859 25,859
Less, accumulated depreciation (25,859) (25,859)
Net fixed assets 0 0
Total Assets 4,552 12,842
Current Liabilities:    
Accounts payable and accrued expenses 31,364 49,376
Payroll and other taxes payable 30,768 32,056
Loans from shareholder 18,073 17,781
Amounts due to related parties 77,101 13,548
Total current liabilities 157,306 112,761
Commitments and Contingencies – Note 3      
Stockholders' Deficit:    
Common stock: authorized 100,000,000 shares of .001 par value; 44,100,816shares issued and outstanding 44,101 44,101
Additional paid in capital 4,793,552 4,793,552
Deficit accumulated during development stage (1,115,907) (1,062,616)
Deficit accumulated prior to development stage (3,879,122) (3,879,122)
Accumulated other comprehensive income 4,960 4,476
Total Amanasu Environment Corporation stockholders' deficit (152,754) (99,919)
Non controlling interest in subsidiary (338) (310)
Total stockholders' deficit (152,754) (99,919)
Total Liabilities and Stockholders' Deficit $ 4,552 $ 12,842
XML 17 R6.htm IDEA: XBRL DOCUMENT v2.4.0.8
1. BASIS OF PRESENTATION
9 Months Ended
Sep. 30, 2014
Disclosure Text Block [Abstract]  
1. BASIS OF PRESENTATION

The unaudited interim consolidated financial statements of Amanasu Environment Corporation ("the Company") as of September 30, 2014 and 2013 and for the three and nine month periods ended September 30, 2014 and 2013, and for the period January 1, 2009 (date of commencement of development stage) to September 30, 2014., 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 of only 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, 2014 are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2014.

 

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, 2013.

 

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2. SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
9 Months Ended
Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
3. SUPPLEMENTAL DISCLOSURES OF 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 PARENTHETICAL (USD $)
Sep. 30, 2014
Dec. 31, 2013
CONSOLIDATED BALANCE SHEETS PARENTHETICAL    
Common stock shares authorized 100,000,000 100,000,000
Common stock shares par value $ 0.001 $ 0.001
Common stock shares issued 44,100,816 44,100,816
Common stock shares outstanding 44,100,816 44,100,816
XML 21 R1.htm IDEA: XBRL DOCUMENT v2.4.0.8
Document and Entity Information
9 Months Ended
Sep. 30, 2014
Nov. 14, 2014
Document and Entity Information    
Entity Registrant Name AMANASU ENVIRONMENT CORP  
Document Type 10-Q  
Document Period End Date Sep. 30, 2014  
Amendment Flag false  
Entity Central Index Key 0001142801  
Current Fiscal Year End Date --12-31  
Entity Common Stock, Shares Outstanding   44,100,816
Entity Filer Category Smaller Reporting Company  
Entity Current Reporting Status No  
Entity Voluntary Filers No  
Entity Well-known Seasoned Issuer No  
Document Fiscal Year Focus 2014  
Document Fiscal Period Focus Q3  
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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
3 Months Ended 9 Months Ended 202 Months Ended
Sep. 30, 2014
Jun. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Revenue          
Revenue $ 0 $ 0 $ 0 $ 0 $ 0
Expenses (1,200) 60,298 51,630 116,123 1,153,724
Operating income (loss) 1,200 (60,298) (51,630) (116,123) (1,153,724)
Other Income (Expense) (98) 0 (98) 388 290
Interest Income (1) 0 0 0 13,107
Debt forgiveness 0 0 0 0 13,781
Interest Expense (891) 0 (1,563) 0 (1,563)
Net income (loss) 210 (60,298) (53,291) (115,735) (1,128,109)
Net Income Attributable to Noncontrolling Interest 0 0 0 0 12,203
Net Income (Loss) Attributable to Amanasu Environment Corporation 210 (60,298) (53,291) (115,735) (1,128,110)
Other Comprehensive Loss:          
Foreign currency adjustments 93 (51) (338) (987) 11,029
Attributable to noncontrolling interest (11) 4 28 (90) 0
Net Other Comprehensive Income(Loss) 82 (47) (310) 897 11,029
Total Comprehensive (Loss) $ 292 $ (60,345) $ (53,600) $ (114,838) $ (1,104,877)
Net Loss Per Share - basic and diluted $ 0 $ 0 $ 0 $ 0  
Weighted average number of common shares outstanding 44,100,816 44,021,468 44,100,816 44,007,776  
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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
9 Months Ended 202 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
CASH FLOWS FROM OPERATIONS      
Net loss $ (53,291) $ (115,735) $ (1,128,110)
Charges not requiring outlay of cash:      
Depreciation 0 0 6,074
Cancellation of debts 0 0 (13,781)
Write offs of bad debts 0 0 138,931
Increase in related party debt 20,000 0 20,000
Changes in assets and liabilities:      
Increase (decrease) in accounts payable and accrued expenses (18,012) 20,453 9,630
Increases in taxes payable 0 0 34,676
Increase in employee loan 0 0 (2,900)
Net Cash Consumed By Operating Activities (51,303) (95,282) (935,480)
CASH FLOWS FROM INVESTING ACTIVITIES      
Cash transferred on sale of subsidiary 0 0 (270)
Redemptions of certificates of deposit 0 3,000 695,000
Loans to officer 0 0 (68,635)
Officer repayments 0 0 53,260
Net Cash Provided by Investing Activities 0 3,000 679,355
CASH FLOWS FROM FINANCING ACTIVITIES      
Advances from shareholder 0 50,000 50,000
Repayment from shareholder advances 0 0 18,104
Officer advances 35,750 0 55,750
Sales of capital stock 0 100,000 100,000
Advance from affiliate 7,071 25,048 15,046
Short term loans 0 0 14,212
Net Cash Provided By Financing Activities 42,821 175,048 253,112
Effect on Cash of Exchange Rate Changes 192 1 (18)
Net Changes In Cash Balances (8,290) 82,767 (3,031)
Cash balance, beginning of period 12,842 3,600 7,583
Cash balance, end of period $ 4,552 $ 86,367 $ 4,552
XML 24 R10.htm IDEA: XBRL DOCUMENT v2.4.0.8
4. Related Party Transactions (Details Narrative) (USD $)
9 Months Ended
Sep. 30, 2014
Text Block [Abstract]  
Advances from affiliate $ 7,071
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