-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VzZ4a3u2/QrxZgEi2m0ILSZSOKb8KIMHn5SUy+/bjIcxApTvoTjyUYFFyXQ+XMMo HEkuoWLtGtepMTES98dCeg== 0001290785-08-000002.txt : 20080415 0001290785-08-000002.hdr.sgml : 20080415 20080415162317 ACCESSION NUMBER: 0001290785-08-000002 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20080229 FILED AS OF DATE: 20080415 DATE AS OF CHANGE: 20080415 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN ENVIRONMENTAL, INC. CENTRAL INDEX KEY: 0001290785 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 562335301 STATE OF INCORPORATION: FL FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-50783 FILM NUMBER: 08757422 BUSINESS ADDRESS: STREET 1: 1016 CLEMONS ST. STREET 2: SUITE 302 CITY: JUPITER STATE: FL ZIP: 33477 BUSINESS PHONE: 561-880-0004 MAIL ADDRESS: STREET 1: 1016 CLEMONS ST. STREET 2: SUITE 302 CITY: JUPITER STATE: FL ZIP: 33477 FORMER COMPANY: FORMER CONFORMED NAME: MyZipSoft, Inc. DATE OF NAME CHANGE: 20050714 FORMER COMPANY: FORMER CONFORMED NAME: Freedom 4 Wireless, Inc. DATE OF NAME CHANGE: 20040518 10QSB 1 aei0208q.txt AMERICAN ENVIRONMENTAL INC. FORM 10QSB - FEBRUARY 29, 2008 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB (Mark One) [X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 29, 2008 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ___________ File Number 000-51419 AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) (f/k/a Freedom 4 Wireless, Inc.) (f/k/a MyZipSoft, Inc.) - ----------------------------------------------------------------------------- (Exact name of small business issuer as specified in its charter) Florida 56-2335301 -------------------------------- -------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1016 Clemmons Street, Suite 302 Jupiter, Florida 33477 ----------------------------------------------------------------------------- (Address of principal executive offices) (561) 745-6789 ----------------------------------------------------------------------------- (Registrant's telephone number, including area code) Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15 (d) of the 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 shell company (as defined in Rule 12b-2 of the Exchange Act Yes [X] No [ ] State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date. [As of February 29, 2008 the issuer had 45,080,747 shares of common stock, $.01 Par Value, outstanding] Transitional Small Business Disclosure format: Yes [ ] No [ X ] Cusip Number: 628703 10 0 CIK Number: 0001290785 AMERICAN ENVIRONMENTAL, INC. FORM 10-QSB February 29, 2008 (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise INDEX PAGE NO. PART I FINANCIAL INFORMATION ITEM 1 FINANCIAL STATEMENTS Report of Independent Registered Public Accounting Firm... 3 Balance Sheets: February 29, 2008 and May 31, 2007 ....................... 4 Statements of Operations: Nine Months Ended Feb 29, 2008 and Feb 28, 2007 and from Inception, February 28, 2003 through February 29, 2008 .. 5 Statements of Operations: Three Months Ended Feb 29, 2008 and Feb 28,2007 ......... 6 Statement of Changes in Shareholders' Equity from Inception May 1, 2005, through February 29, 2008 ........ 7 Statement of Cash Flows Three Months Ended Feb 29, 2008 and Feb 28, 2007 and from Inception February 28, 2003 through February 29, 2008 ... 8 Notes to Financial Statements............................. 10 ITEM 2 Management's Discussion and Analysis or Plan of Operation.....16 ITEM 3 Controls and Procedures.......................................20 PART II OTHER INFORMATION ITEM 1 Legal Proceedings.............................................21 ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds......................................................21 ITEM 3 Defaults Upon Senior Securities...............................21 ITEM 4 Submission of Matters to a Vote Of Security Holders ..........21 ITEM 5 Subsequent Events.............................................21 ITEM 6 Exhibits......................................................21 SIGNATURES AND CERTIFICATIONS........................................22 Exhibit 31.1 Certification required under Section 302 of ........23 the Sarbanes-Oxley Act of 2002 by the CE0 Exhibit 31.2 Certification required under Section 302 of ........24 the Sarbanes-Oxley Act of 2002 by the CFO Exhibit 32 Certification of CEO and CFO Pursuant to ...........25 Section 906 of the Sarbanes-Oxley Act 2 Wieseneck, Andres & Company, P.A. Certified Public Accountants 772 U.S. Highway 1, Suite 100 North Palm Beach, Florida 33408 (561) 626-0400 Thomas B. Andres, C.P.A.*, C.V.A. FAX (561) 626-3453 Paul M. Wieseneck, C.P.A. *Regulated by the State of Florida REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders American Environmental, Inc. (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise Jupiter, Florida We have reviewed the accompanying balance sheets of American Environmental, Inc., (f/k/a MyZipSoft, Inc.) a Development Stage Enterprise, as of February 29, 2008 and May 31, 2007, and the related statements of operations for nine month periods ended February 29, 2008 and February 28, 2007 and from Inception, February 28, 2003, through February 29, 2008, the related statements of operations for three month periods ended February 29, 2008 and February 28, 2007, the statement of changes in stockholders' equity from May 1, 2005 through February 29, 2008 and the statement of cash flows for the nine month periods ended February 29, 2008 and February 28, 2007 and Inception, February 28, 2003 through February 29, 2008. These financial statements are the responsibility of the company's management. We conducted our review in accordance with the standards established by the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with U.S. generally accepted accounting principles. /s/Wieseneck, Andres & Company, P.A. North Palm Beach, Florida April 15, 2008 3 AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise BALANCE SHEETS (UNAUDITED) FEB 29, 2008 MAY 31, 2007 ------------ ------------ ASSETS Current Assets Cash and Cash Equivalents $ 1 $ 29 Prepaid Expense - - Note and Loan Receivable 44,588 44,569 Accounts Receivable 108 322 ---------- ----------- Total Current Assets 44,697 44,920 ---------- ----------- TOTAL ASSETS $ 44,697 $ 44,920 ========== =========== LIABILITIES & STOCKHOLDERS' EQUITY Liabilities Current Liabilities Accounts Payable $ 17,974 $ 9,995 Loans Payable 441 441 Shareholder Loans Payable 1,841 10,856 ---------- ----------- Total Current Liabilities 20,256 21,292 ---------- ----------- Total Liabilities 20,256 21,292 ---------- ----------- Stockholders' Equity Common Stock $.0001 par value: 300 million shares authorized; Shares issued and outstanding: 45,080,747 at February 29, 2008 and 37,827,147 at May 31, 2007 4,508 3,782 Paid-in Capital 1,015,433 952,279 Deficit Accumulated during the Development Stage (995,500) (932,433) ---------- ----------- Total Stockholders' Equity 24,441 23,628 ---------- ----------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 44,697 $ 44,920 ========== =========== Read accompanying summary of accounting policies, notes to financial statements and independent accountants' review report. 4 AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise STATEMENTS OF OPERATIONS FOR THE NINE MONTHS ENDED FEBRUARY 29, 2008 AND FEBRUARY 28, 2007 AND FROM INCEPTION, FEBRUARY 28, 2003, THROUGH FEBRUARY 29, 2008 (UNAUDITED) INCEPTION FEBRUARY 28, 2003 THROUGH FEB 29, 2008 FEB 28, 2007 FEBRUARY 29, 2008 ------------ ------------ ------------ Revenues Net Sales $ 182 $ 423 $ 1,386 Cost of Sales - - (15) ------------ ------------ ------------ Gross Profit 182 423 1,371 Operating Expenses General and Administrative 61,904 75,592 445,372 Sales and Marketing 50 99 811 ------------ ------------ ------------ Total Operating Expenses (61,954) (75,691) (446,183) ------------ ------------ ------------ Loss from Operations (61,772) (75,268) (444,812) Other Income (Expense) Interest Income - - 3,573 Interest Expense (1,294) (662) (7,365) Discontinued Operations - - (537,521) ------------ ------------ ------------ Net Loss $ (63,066) $ (75,930) $ (986,125) ============ ============ ============ Basic and Diluted Net Loss per Common Share $ (.002) $ (.002) ============ ============ Weighted Average Shares Outstanding 45,080,747 31,015,875 ============ ============ Read accompanying summary of accounting policies, notes to financial statements and independent accountants' review report. 5 AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED FEBRUARY 29, 2008 AND FEBRUARY 28, 2007 (UNAUDITED) FEB 29, 2008 FEB 28, 2007 ----------- ------------ Revenues Net Sales $ - $ 80 Cost of Sales - - ----------- ------------ Gross Profit - 80 Operating Expenses General and Administrative 9,662 14,567 Sales and Marketing - 16 ----------- ------------ Total Operating Expenses (9,662) (14,583) ----------- ------------ Loss from Operations (9,662) (14,503) Other Income (Expense) Interest Income - - Interest Expense (524) - Discontinued Operations - - ----------- ------------ Net Loss $ (10,186) $ (14,503) =========== ============ Basic and Diluted Net Loss per Common Share $ (.000) $ (.000) =========== ============ Weighted Average Shares Outstanding 45,080,747 32,868,198 ============ ============ Read accompanying summary of accounting policies, notes to financial statements and independent accountants' review report. 6 AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FROM MAY 31, 2005, THROUGH FEBRUARY 29, 2008 (UNAUDITED) Number At Par Add'l Total of Value Paid In Accumulated Stockholder Shares $.0001 Capital (Deficit) Equity Balance, --------- -------- -------- --------- ----------- May 1, 2005 14,990,974 $ 1,499 $ 726,200 $ (695,574) $ 32,125 Sale of Common Stock (See Note M) 5,000,000 500 49,500 0 50,000 Convert Debt to Common Stock (See Note N) 6,336,740 633 62,734 0 63,367 Convert Professional fees to Common Stock 1,000,000 100 9,900 - 10,000 Net Loss 2006 - - - (125,959) (125,959) Convert Debt to Common Stock (See Note N) 9,649,433 965 95,529 0 96,494 Convert Professional fees to Common Stock 850,000 85 8,415 0 8,500 Net Loss 2007 - - - (110,901) (110,901) ----------- -------- --------- ---------- ----------- Balance, May 31, 2007 37,827,147 3,782 952,279 (932,433) 23,628 Convert Debt to Common Stock (See Note N) 5,553,600 555 46,324 0 46,879 Convert Professional fees to Common Stock 1,700,000 170 16,830 0 17,000 Net Loss Feb 29, 2008 - - - (63,066) (63,066) ----------- -------- --------- ---------- ----------- Balance, Feb 29, 2008 45,080,747 $ 4,508 $1,015,433 $(995,500) $ 24,441 ============ ======== ========= ========== =========== Read accompanying summary of accounting policies, notes to financial statements and independent accountants' review report. 7 AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED FEBRUARY 29, 2008 AND FEBRUARY 28, 2007 AND FROM INCEPTION, FEBRUARY 28, 2003, THROUGH FEBRUARY 29, 2008 (UNAUDITED) INCEPTION FEBRUARY 28, 2003 THROUGH FEB 29, 2008 FEB 28, 2007 FEBRUARY 29, 2008 ---------- ---------- ----------- Cash Flows From Operating Activities Cash received from customers $ 346 $ 413 $ 1,228 Cash paid to suppliers of goods and services (270) (47,301) (386,898) Income taxes paid - - - Interest paid - - (203) Interest received - - - ---------- ---------- ----------- Net Cash Flows Provided by/(Used in) Operating Activities 76 (46,888) (385,873) ---------- ---------- ----------- Cash Flows From Investing Activities - - - ---------- ---------- ----------- Net Cash Flows Provided by (Used in) Investing Activities - - - Cash Flows From Financing Activities Sale of Common Stock - 55,584 100,000 Proceeds of loans from shareholders - - 353,450 Repayment of loans from shareholders (338) (22,861) (140,019) Repayment of loans to related parties 235 27,500 68,428 Proceeds of loans from related company - (14,473) 4,015 Loans from related parties - 1,380 Loans to related company - (100) - ---------- ---------- ----------- Net Cash Flows Provided By (Used In) Financing Activities (103) (47,030) 385,874 ---------- ---------- ----------- Net Increase / (Decrease) in Cash (27) 142 1 Cash and Cash Equivalents at Beginning of Period 28 520 0 ---------- ---------- ----------- Cash and Cash Equivalents at End of Period $ 1 $ 662 $ 1 ========== ========== =========== Read accompanying summary of accounting policies, notes to financial statements and independent accountants' review report. 8 AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED FEBRUARY 29, 2008 AND FEBRUARY 28, 2007 (UNAUDITED) Reconciliation of Net Loss to Net Cash Flows Used in Operating Activities FEB 29, 2008 FEB 28, 2007 ------------ ------------ Net Income (Loss) $ (63,066) $ (75,930) Add items not requiring outlay of cash: Depreciation - - Convert related party debt to equity 37,930 14,625 Convert professional fees to equity 17,000 - Cash was increased by: Decrease in accounts receivable 214 - Decrease in Prepaid Assets - 6,861 Increase in accounts payable 7,979 7,547 Cash was decreased by: Increase in accounts receivable - 9 Decrease in accounts payable - - Increase in prepaid assets 19 - ------------ ------------ Net Cash Flows Provided by /(Used in) Operating Activities $ 76 $ (46,888) ============ ============ Read accompanying summary of accounting policies, notes to financial statements and independent accountants' review report. 9 AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise NOTES TO FINANCIAL STATEMENTS NOTE A - HISTORY AND DESCRIPTION OF BUSINESS Pursuant to SEC Staff Legal Bulletin No. 4, eCom decided to spin off American Environmental, Inc.,(f/k/a MyZipSoft, Inc.) into an independent company in the belief that the independent company, with a distinct business, would be better able to obtain necessary funding and develop their business plans. American Environmental, Inc.,(f/k/a MyZipSoft, Inc.) was incorporated in the State of Florida on February 28, 2003 as a wholly owned subsidiary of eCom eCom.com, Inc. On December 1, 2003, the Board of Directors of eCom eCom.com, Inc. approved the spin-off of American Environmental, Inc. (f/k/a MyZipSoft, Inc.). eCom eCom.com, Inc. spun off American Environmental, Inc.,(f/k/a MyZipSoft, Inc.) on March 4, 2004. On November 2, 2005, MyZipSoft, Inc. changed its name to American Environmental, Inc. The Company's main office is located at 1016 Clemons Street, Suite 302, Jupiter, FL 33477. The telephone number is (561) 745-6789. The Company does not have any off-balance sheet arrangements. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION, USE OF ESTIMATES The Company maintains its accounts on the accrual basis of accounting. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. REVENUE RECOGNITION Product revenue is recognized when the product is shipped. Service revenue is recognized when the service is complete. Dividends from investments are recognized when declared payable by the underlying investment. Capital gains and losses are recorded on the date of the sale of the investment. CASH Cash consists of deposits in banks and other financial institutions having original maturities of less than ninety days. ALLOWANCE FOR DOUBTFUL ACCOUNTS It is the policy of management to review the outstanding accounts receivable at each year end, as well as the bad debt write-offs experienced in the past, in order to establish an allowance for doubtful accounts for uncollectible amounts. 10 AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise NOTES TO FINANCIAL STATEMENTS NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) DEPRECIATION Property and equipment is recorded at cost and depreciated over the estimated useful lives of the related assets. Depreciation is computed using the straight- line method. AMORTIZATION The accounting for a recognized intangible asset acquired after June 30, 2001 is based on its useful life to the Company. If an intangible asset has a finite life, but the precise length of that life is not known, that intangible asset shall be amortized over management's best estimate of its useful life. An intangible asset with an indefinite useful life is not amortized. The useful life to an entity is the period over which the asset is expected to contribute directly or indirectly to the future cash flows of that entity. RECLASSIFICATION Certain reclassifications have been made to the prior year financial statements in order for them to be in conformity with the current year presentation. NOTE C - NOTE AND LOANS RECEIVABLE The notes and loans receivable at November 30, 2007 and May 31, 2007 are non- interest bearing, non collateralized and due on demand. Green Energy Group, Inc. owes the company $7,000, Amenviro Corp. owes the company $14,055. The note receivable dated June 1, 2005 is with Miami Filter, LLC in an original amount of $50,000. The note is non-collateralized and matured on September 1, 2005. On July 27, 2006, a payment of $7,500 was made toward the principal of this Note. NOTE D - DEVELOPMENT STAGE COMPANY The Company has been and is currently in the development stage. It is the intention of management to merge or acquire a company engaged in the insurance, environmental, or energy business. NOTE E - PREPAID EXPENSES The Company has prepaid expenses at February 29, 2008 and May 31, 2007 in the amounts of $0 and $0. NOTE F - CHANGE OF COMMON SHARES AUTHORIZED The Company changed the number of common shares authorized from 100 to 300 million with the state of Florida on January 25, 2005. The par value of the common stock remains at $0.0001 per share. 11 AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise NOTES TO FINANCIAL STATEMENTS NOTE G - SHAREHOLDER LOANS AND LOANS PAYABLE The Loans Payable at February 29, 2008 and May 31, 2007, in the amounts of $441 and $441, respectively, are non-interest bearing, non-collateralized and due on demand. The Stockholder Loans Payable in the amounts of $1,841 and $10,856 at February 29, 2008 and May 31, 2007, respectively, are non-interest bearing, non- collateralized and due on demand. NOTE H - INCOME TAXES No provision for federal and state income taxes has been recorded because the Company has incurred net operating losses since inception. The Company's net operating loss carryforward as of February 29, 2008 totals approximately $975,000. These carry forwards, which will be available to offset future taxable income, expire beginning in 2024. The Company accounts for income taxes in accordance with FASB Statement No. 109, Accounting for Income Taxes (FASB 109). Under FASB 109, income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related to certain income and expenses recognized in different periods for financial and income tax reporting purposes. Deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes also are recognized for operating losses and tax credits that are available to offset future taxable income and income taxes, respectively. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax asset will not be realized. See Note J. NOTE I - STOCKHOLDERS' EQUITY The computation of diluted loss per share does not include shares from potentially dilutive securities as the assumption of conversion or exercise of these would have an antidilutive effect on loss per share. In accordance with generally accepted accounting principles, diluted loss per share is calculated using the same number of potential common shares as used in the computation of loss per share before extraordinary items. NOTE J - DEFERRED TAX ASSET Deferred income taxes are provided for temporary differences between the financial reporting and income tax basis of the Company's assets and liabilities. Temporary differences, net operating loss carry forwards and valuation allowances comprising the net deferred taxes on the balance sheets are as follows: 12 AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise NOTES TO FINANCIAL STATEMENTS NOTE J - DEFERRED TAX ASSET (CONTINUED) February 29, 2008 ---------------- Loss carry forward for tax purposes $ 975,000 ================ Deferred tax asset (34%) (331,500) Valuation allowance 331,500 ---------------- Net deferred tax asset $ 0 ================ The Company does not believe that the realization of the related net deferred tax asset meets the criteria required by generally accepted accounting principles and, accordingly, the deferred income tax asset arising from such loss carry forward has been fully reserved. NOTE K - RELATED PARTY TRANSACTIONS The Company is allocated certain expenses such as rent, travel and office & administrative that are paid on behalf of the Company by American Capital Holdings, Inc., a company that is related to the Company by mutual stockholders and directors. The total of expenses allocated to the Company in the six months ended February 29, 2008 is approximately $34,985. A portion of the liabilities payable to American Capital are converted to common stock and paid in capital at the end of each reporting period. NOTE L - RECENT ACCOUNTING PRONOUNCEMENTS The FASB issued SFAS No. 150, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity, and is effective for financial instruments entered into after May 31, 2003. This Statement establishes standards for how an issuer classifies and measures in its statement of financial position certain financial instruments with characteristics of both liabilities and equity. It requires that an issuer classify a financial instrument that is within its scope as a liability because that financial instrument embodies an obligation of the issuer. Statement of Financial Accounting Standards No. 151, Inventory Costs, is an amendment of ARB No. 43, Chapter 4 and is effective for inventory costs incurred during fiscal years beginning after June 15, 2005. This statement amends ARB 43, Chapter 4, to clarify that abnormal amounts of idle facility expense, freight, handling costs, and wasted materials (spoilage) should be recognized as current-period charges. In addition, this Statement requires that allocation of fixed production overheads to the costs of conversion be based on the normal capacity of the production facilities. Statement of Financial Accounting Standards No. 152, Accounting for Real Estate Time-Sharing Transactions, is an amendment of FASB Statements No. 66 and 67. 13 AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise NOTES TO FINANCIAL STATEMENTS NOTE L - RECENT ACCOUNTING PRONOUNCEMENTS - (CONTINUED) Statement of Financial Accounting Standards No. 153, Exchanges of Nonmonetary Assets, was issued in December 2004. The guidance in APB No. 29, Accounting for Nonmonetary Transactions, is based on the principle that exchanges of nonmonetary assets should be measured based on the fair value of the assets exchanged. The guidance in that Opinion, however, included certain exceptions to that principle. This Statement amends Opinion 29 to eliminate the exception for nonmonetary exchanges of similar productive assets and replaces it with a general exception for exchanges of nonmonetary assets that do not have commercial substance. A nonmonetary exchange has commercial substance if the future cash flows of the entity are expected to change significantly as a result of the exchange. Statement of Financial Accounting Standards No. 154, Accounting Changes and Error Corrections, was issued in May 2005. This Statement requires retrospective application to prior periods' financial statements of changes in accounting principle, unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change. When it is impracticable to determine the period-specific effects of an accounting change on one or more individual prior periods presented, this Statement requires that the new accounting principle be applied to the balances of assets and liabilities as of the beginning of the earliest period for which retrospective application is practicable and that a corresponding adjustment be made to the opening balance of retained earnings (or other appropriate components of equity or net assets in the statement of financial position) for that period rather than being reported in an income statement. When it is impracticable to determine the cumulative effect of applying a change in accounting principle to all prior periods, this Statement requires that the new accounting principle be applied as if it were adopted prospectively from the earliest date practicable. This Statement requires that retrospective application of a change in accounting principle be limited to the direct effects of the change. Indirect effects of a change in accounting principle, such as a change in nondiscretionary profit-sharing payments resulting from an accounting change, should be recognized in the period of the accounting change. This Statement also requires that a change in depreciation, amortization, or depletion method for long-lived, nonfinancial assets be accounted for as a change in accounting estimate by a change in accounting principle. This Statement carries forward without change the guidance contained in Opinion 20 for reporting the correction of an error in previously issued financial statements and a change in accounting estimate. This Statement also carries forward the guidance in Opinion 20 requiring justification of a change in accounting principle on the basis of preferability. Statement of Financial Accounting Standards No. 155, Accounting for Certain Hybrid Financial Instruments, was issued in February 2006. This Statement permits fair value remeasurement for any hybrid financial instrument that contains an embedded derivative that otherwise would require bifurcation; clarifies which interest-only strips and principle-only strips are not subject to the requirements of Statement 133; establishes a requirement to evaluate interests in securitized financial assets to identify interests that are 14 AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise NOTES TO FINANCIAL STATEMENTS NOTE L - RECENT ACCOUNTING PRONOUNCEMENTS - (CONTINUED) freestanding derivatives or that are hybrid financial instruments that contain an embedded derivative requiring bifurcation; clarifies that concentrations of credit risk in the form of subordination are not embedded derivatives, and amends Statement 140 to eliminate the prohibition on a qualifying special-purpose entity from holding a derivative financial instrument that pertains to a beneficial interest other than another derivative financial instrument. Statement of Financial Accounting Standards No. 156, Accounting for Servicing of Financial Assets, was issued in March 2006. This Statement requires an entity to recognize a servicing asset, a contract to service financial assets under which the estimated future revenues from contractually specified servicing fees, late charges, and other ancillary revenues are expected to more than adequately compensate the servicer for performing the servicing, or servicing liability, a contract to service financial assets under which the estimated future revenues from contractually specified servicing fees, late charges, and other ancillary revenues are not expected to adequately compensate the servicer for performing the servicing, each time it undertakes an obligation to service a financial asset by entering into a servicing contract. SFAS No's. 150, 151, 152, 153, 154, 155 and 156 were adopted by the company and did not have a material effect on the Company's financial position or results of operations. NOTE M - COMMON STOCK American Capital Holdings, Inc., a related company in that it was also a company spun off from eCom eCom.com, Inc., acquired 5 million shares of American Environmental, Inc. common stock on May 31, 2005 for $50,000 and an additional 5 million shares for $50,000 in June 2005. See Note A. American Capital Holdings, Inc. distributed the 10 million common shares to its shareholders in the form of a dividend. The 6,336,740 common shares distributed to American Capital Holdings, Inc. as partial payment of its accounts payable were also distributed to the stockholders, prorata, of American Capital Holdings on August 7, 2006. See Note N. By definition, American Environmental, Inc. is not a wholly owned subsidiary of American Capital Holdings, Inc. in that American Capital Holdings does not directly or indirectly own over fifty (50) percent of the outstanding voting shares of American Environmental, Inc. NOTE N - SHAREHOLDER LOAN, RELATED COMPANY ACCOUNTS PAYABLE The Company had a portion of its prior and current year accounts payable such as rent, administrative costs, tax preparation, SEC filing costs, etc. paid by a related company for the benefit of American Environmental, Inc. The related company invoiced American Environmental, Inc. for the expenses it paid on its behalf. In the year ended May 31, 2006, American Environmental, Inc. reduced a portion of its outstanding accounts payable to the related company by $63,367 by 15 AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise NOTES TO FINANCIAL STATEMENTS NOTE N - SHAREHOLDER LOAN, RELATED COMPANY ACCOUNTS PAYABLE - (CONTINUED) issuing the company 6,336,740 shares of its common voting shares. See Note M relating to the distribution of these shares. During the nine months ended February 28, 2007, the Company issued an additional 4,291,775 shares to reduce accounts payable to American Capital Holdings. The Company reduced its accounts payable balance due to American Capital Holdings at February 28, 2007 to $0. NOTE O - DISCONTINUED OPERATIONS The Company invested in certain wireless software operations for homeland security in 2004 and 2005. In 2005, management decided to change the direction of the Company towards insurance, environmental or energy applications and, therefore, decided to abandon all of its current and prior operations and investments in the area of homeland security. No sales were recorded in the year ended May 31, 2005 that relate to homeland security. The loss of $540,000 recognized in 2005 consisted primarily of the write off of assets that consisted principally of inventory, equipment, and various software applications. ITEM 2. MANAGEMENT'S DISCUSSION AND COMPARISON OF RESULTS OF OPERATIONS The following discussion should be read in conjunction with the accompanying financial statements for the nine month periods ended February 29, 2008 and February 28, 2007 and the Form 10-KSB for the fiscal year ended May 31, 2007. Special Note Regarding Forward-Looking Statements - ------------------------------------------------- Certain statements in this report and elsewhere (such as in other filings by the Company with the Securities and Exchange Commission ("SEC"), press releases, presentations by the Company of its management and oral statements) may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," and "should," and variations of these words and similar expressions, are intended to identify these forward-looking statements. The company's actual results could differ materially from those anticipated in these forward-looking statements. Factors that might cause or contribute to such differences include, among others, failure to complete a merger or acquisition with a privately owned operating business that is generating substantial revenues, success of the Company's business operations, failure to obtain sufficient capital to fund those operations, and failure to meet the qualifications for listing of the Company's stock on a major stock exchange. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. History of Spin-Off Company: On December 1, 2003, the Board of Directors of eCom approved the spin-off of the Company. On June 4, 2004, the Board of Directors of eCom readopted a resolution 16 AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise ITEM 2. MANAGEMENT'S DISCUSSION AND COMPARISON OF RESULTS OF OPERATIONS (CONTINUED) to spinoff the Company and authorized whatever action necessary to complete this process including acquisitions and mergers. In this regard, the board included instructions for the distribution of stock by its Transfer Agent, Florida Atlantic Stock Transfer (FAST), to the shareholders when the share certificates were properly exercised and costs relating to the issuance of these shares were paid in full. Notwithstanding the foregoing, eCom eCom was not able to pay FAST the amounts required to send out the stock certificates to the shareholders, and therefore, the shares were not issued. Due to eCom's financial condition, eCom was unable to effectuate the spinoffs. In connection with the spinoffs, eCom owned all outstanding and issued shares of common stock of the Company. By spinning off the Company, eCom distributed the common stock of the Company to eCom's shareholders in proportion to the shares held in eCom as the relevant record date. On November 29, 2004, an involuntary petition was filed against eCom eCom.com, Inc. under Chapter 11 Title 11, of the United States Bankruptcy Code. Thereafter, an order for relief was entered by the United States Bankruptcy Court on May 16, 2005. On June 2, 2005, the shares of the Spin-Off Company were distributed to eCom shareholders of record, as of May 27, 2005. Subsequent thereto, eCom caused a registration statement on Form 10-SB to be filed for the Company. On July 18, 2005, the Company received a letter from the Securities and Exchange Commission asking it to provide legal analysis for the "spin-off" share issuance. A copy of this letter is enclosed herein as Exhibit No. 99.1. In an effort to give the SEC an answer regarding their request for detailed clarification as to the legal analysis of the spin-off companies and to comply with the request to withdraw each of the above referenced spin-off companies' Form 10SBG12, on August 15, 2005 each spin-off company withdrew their respective July 8, 2005 Form 10SBG12 filings. On August 15, 2005 Barney A. Richmond filed a reply with the SEC regarding their July 18, 2005 correspondence. A copy of Mr. Richmond's legal analysis is enclosed as Exhibit No. 99.2. A transcript of the March 12, 2007 confirmation hearing is attached as Exhibit 99.3. The Order Confirming the First Amended Joint Plan of Reorganization of Debtor and American Capital Holdings, Inc. as Modified was signed by Judge Friedman on March 23, 2007 and is attached as Exhibit 99.4. This order may also be viewed at the eCom website www.ecomecom.net under the bankruptcy link. A post confirmation status conference is scheduled for Monday September 10, 2007 at 2:30 PM at 1515 North Flagler Drive, Room 801, West Palm Beach, FL On March 31, 2008 Joint Plan Proponent American Capital Holdings, Inc. and Debtor, eCom eCom.com, Inc. ("Proponents") received a March 28, 2008 United States Southern District of Florida Bankruptcy Court Order Granting Debtor-In- Possession's Motion For Final Decree Closing Case (C.P. #361) and Final Decree issued by the Honorable Paul G. Hyman, Jr. which closed eCom's successful Plan of Reorganization in re: Case No. 04-35435-BKC-PGH. 17 AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise ITEM 2. MANAGEMENT'S DISCUSSION AND COMPARISON OF RESULTS OF OPERATIONS (CONTINUED) The Company has had no recent revenues or earnings from operations. The Company will sustain operating expenses without corresponding revenues. This will result in the Company incurring net operating losses until the Company can realize profits from the business ventures it intends to acquire. It is the intention of the Company to perform a merger or acquisition with a privately owned operating business that is generating substantial revenues. After a merger or acquisition has occurred, the Company will then file its Form 10-SB and SB-2. Upon effectiveness of the Registration Statement, the Company intends to apply to have its common stock listed for trading on the American Stock Exchange. There is currently no public market for the Company's common stock, until such time as the Company's Registration Statement under the Securities Act of 1933 and the Securities and Exchange Commission has been declared effective. On June 22, 2007, the United States Securities & Exchange Commission ("SEC"), via SEC File No. S7-11-07 and through Release No. 33-8813, issued proposed revisions to Rule 144 and Rule 145 to Shorten Holding Period for Affiliates and Non-Affiliates from Two (2) Years To Six (6) Months To Facilitate Capital Raising For Smaller Companies. Comments from the public were due on September 4, 2007. The revision to Rule 144 was posted to the Federal Register on December 17, 2007, and will be effective on February 15, 2008. The new SEC 144 Rule will reduce eighteen (18) months off the time that the 144 restriction may be removed; and saves significant SEC registration fee costs for each company. This rule adopted by the SEC on December 15, 2007 assures that, 144 Private Placement shares will be automatically eligible for resale in six (6) months. As a result, the company is seeking to raise Three Hundred Thousand ($300,000) U.S. Dollars through the issuance of a ten percent (10%) promissory note to be used to fund general corporate operations, including pursuing merger and acquisition opportunities. For each $25,000 purchased, the promissory note holder will receive ten (10) per cent interest, payable monthly plus Ten Thousand (10,000) $.01 cent warrants in the company. In order to repay the promissory note, the Company plans to prepare a SEC 506 Regulation D Private Placement 144 Equity Offering. The success of the Company's proposed plan of operation will depend primarily on the success of the Company's business operations and the realization of the business' perceived potential. The funding of this proposed plan will require significant capital. There can be no assurance that the Company will be successful or profitable if the Company is unable to raise the funds to provide this capital, or to otherwise locate the required capital for the operations of the business. 18 AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise ITEM 2. MANAGEMENT'S DISCUSSION AND COMPARISON OF RESULTS OF OPERATIONS (CONTINUED) If, for any reason, the Company does not meet the qualifications for listing on a major stock exchange, the Company's securities may be traded in the over-the- counter ("OTC") market. The OTC market differs from national and regional stock exchanges in that it (1) is not sited in a single location but operates through communication of bids, offers and confirmations between broker-dealers and (2) securities admitted to quotation are offered by one or more broker-dealers rather than the "specialist" common to stock exchanges. RESULTS OF OPERATIONS - --------------------- Comparison of the nine months ended February 29, 2008 with the nine months ended February 28, 2007 - ------------------------------------------------------------------- Revenue and gross profit for the nine month period ended February 29, 2008 was $182 compared to $423 recorded during the nine month period ended February 28, 2007. Cost of sales was $0 for both nine month periods. Operating expenses for the nine months ended February 29, 2008 totaled $61,954 compared to $75,691 for the nine months ended February 28, 2007. These charges consisted of general and administrative expenses of $61,904 and sales and marketing expenses of $50 during the current period compared to general and administrative expenses of $75,592 and sales and marketing expenses of $99 during the prior year period. The general and administrative expenses declined from the prior year period because costs associated with bringing the Company current with certain administrative requirements, including SEC filings, were greater during the prior year time period. Interest expense of $(1,294) was recorded in the current nine month period compared to $(662) of interest expense incurred during the corresponding period of the prior year. As a result of the incurrence of the administrative and sales expenses and interest expense, the net loss for the nine months ended February 29, 2008 was $(63,066) versus a net loss of $(75,930) recorded in the nine months ended February 28, 2007. 19 AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise Liquidity and Capital Resources - --------------------------------------- Currently there is no trading market for the Company's common stock, and there can be no assurance that any trading market will ever develop or, if such a market does develop, that it will continue. As noted above, upon effectiveness of a Registration Statement, the Company intends to apply to have its common stock listed for trading on the American Stock Exchange. If, for any reason, the Company does not meet the qualifications for listing on a major stock exchange, the Company's securities may be traded in the over-the-counter ("OTC") market. The Company continues to be reliant on the private sale of its restricted common stock plus loans from stockholders and other related parties in order to fund its operations. ITEM 3. CONTROLS AND PROCEDURES EVALUATION OF THE COMPANY'S DISCLOSURE CONTROLS AND INTERNAL CONTROLS: Within the 90 days prior to the date of this Quarterly Report on Form 10-QSB, the Company evaluated the effectiveness of the design and operation of its 'disclosure controls and procedures' ("Disclosure Controls"). This 'evaluation' ("Controls Evaluation") was done under the supervision and with the participation of management, including the Chief Executive Officer/Chairman ("CEO") and Chief Financial Officer ("CFO"). As a result of this review, the Company adopted guidelines concerning disclosure controls and the establishment of a disclosure control committee made up of senior management. LIMITATIONS ON THE EFFECTIVENESS OF CONTROLS: The Company's management, including the CEO/CHAIRMAN and CFO, does not expect that its Disclosure Controls or its 'internal controls and procedures for financial reporting' ("Internal Controls") will prevent all error and all fraud. Control system, no matter how well conceived and managed, can provide only reasonable assurance that the objectives of the control system are met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost- effective control system, misstatements due to error or fraud may occur and not be detected. 20 AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise CONCLUSIONS: Based upon the Controls Evaluation, the CEO/Chairman and CFO have concluded that, subject to the limitations noted above, the Disclosure Controls are effective to timely alert management to material information relating to the Company during the period when its periodic reports are being prepared. In accordance with SEC requirements, the CEO/Chairman and CFO note that, since the date of the Controls Evaluation to the date of this Quarterly Report, there have been no significant changes in Internal Controls or in other factors that could significantly affect Internal Controls, including any corrective actions with regard to significant deficiencies and material weaknesses. PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS. The Company is not a party to any legal proceedings. 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. SUBSEQUENT EVENTS. None ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. (a) Exhibits: EXHIBIT NUMBER DESCRIPTION - -------- ------------------- 31.1 Certification required under Section 302 of the Sarbanes-Oxley Act of 2002 by the CEO 31.2 Certification required under Section 302 of the Sarbanes-Oxley Act 0f 2002 by the CFO 32 Section 1350 Certification 21 AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise EXHIBIT NUMBER DESCRIPTION - -------- ------------------- 99.1 July 18, 2005 letter from the Securities and Exchange Commission asking AAB National Company to provide legal analysis for their "spin-off" share issuance. (1) 99.2 August 15, 2005 legal analysis from Barney A. Richmond Filed in response to the SEC July 18, 2005 letter. (1) 99.3 Transcript of March 12, 2007 Confirmation Hearing of debtor eCom eCom.com, Inc. (1) 99.4 Order dated March 23, 2007 confirming the First Amended Joint Plan of Reorganization of Debtor and American Capital Holdings Inc. (2) (1) Incorporated by reference to Form 10-QSB for the quarter ended November 30, 2006. (SEC accession number 0001290785-07-000003) (2) Incorporated by reference to Form 10-QSB for the quarter ended February 28, 2007. (SEC accession number 0001290785-07-000004) (b) Reports on Form 8-K: None SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunder duly authorized. April 15, 2008 By: /s/ Barney A. Richmond Barney A. Richmond, Chief Executive Officer April 15, 2008 By: /s/ Richard C. Turner Richard C. Turner, Chief Financial Officer 22 SIGNATURES AND CERTIFICATIONS EXHIBIT 31.1 CERTIFICATION REQUIRED UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Barney A. Richmond, certify that: 1. I have reviewed this quarterly report on Form 10-QSB of AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.). 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 report; 3. Based on my knowledge, the financial statements, and other financial information included in this 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. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant is made known to us by others within the company, particularly during the period in which this report is prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): 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. 6. The registrant's other certifying officer and I have indicated in this 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. Date: April 15, 2008 /s/ Barney A. Richmond Barney A. Richmond President 23 EXHIBIT 31.2 CERTIFICATION REQUIRED UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Richard C. Turner, certify that: 1. I have reviewed this quarterly report on Form 10-QSB of AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.). 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 report; 3. Based on my knowledge, the financial statements, and other financial information included in this 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. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant is made known to us by others within the company, particularly during the period in which this report is prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): 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. 6. The registrant's other certifying officer and I have indicated in this 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. Date: April 15, 2008 /s/ Richard C. Turner Richard C. Turner Chief Financial Officer 24 AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) A Development Stage Enterprise EXHIBIT 32 CERTIFICATIONS OF CEO AND CFO PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. SECTION 1350) In connection with the Registration Statement of AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.), a Florida corporation (the "Company"), on Form 10-QSB for the period ended February 29, 2008 as filed with the Securities and Exchange Commission (the "Report"), Barney A. Richmond, President of the Company, and Richard C. Turner, Chief Financial Officer of the Company, respectively, do each hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C 1350, that to his knowledge: (1) The Report fully complies with the requirements of section 13(a) or 15(d)of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. /s/ Barney A. Richmond Barney A. Richmond President Date: April 15, 2008 /s/ Richard C. Turner Richard C. Turner Chief Financial Officer Date: April 15, 2008 [A signed original of this written statement required by Section 906 has been provided to AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) and will be retained by AMERICAN ENVIRONMENTAL, INC. and furnished to the Securities and Exchange Commission or its staff upon request.] The Securities and Exchange Commission has not approved or disapproved of this Form 10-QSB nor -----END PRIVACY-ENHANCED MESSAGE-----