UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 10-Q
 
 
[ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the period ended JuneSeptember 30, 2013
 
[     ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from ______________ to ________________
 
Commission File Number: 000-32905
 
 
AMANASU ENVIRONMENT CORPORATION
 
 
(Exact name of registrant as specified in its charter)
 
Nevada 98-0347883
(State of other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
 
445 Park Avenue Center 10th Floor New York, NY 10022
(Address of principal executive offices)
 
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.
 
YesX No 
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting copany"company" in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer  Accelerated filer 
Non-accelerated filer (Do not check if a smaller reporting company)Smaller reporting companyX
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
 
Yes  NoX

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
 
Indicate by check mark whether the registrant has filed all docmentsdocuments and reports required to be filed by sections 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.
 
Yes  No 

APPLICABLE ONLY TO CORPORATE ISSUERS:
 
Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practicable date: 44,000,81644,100,816 as of August 5,November 15, 2013.

 
 
 

AMANASU ENVIRONMENT CORPORATION
 
QUARTERLY REPORT ON FORM 10-Q
 
FOR THE PERIOD ENDED JUNESEPTEMBER 30, 2013
 
TABLE OF CONTENTS
 
ReferenceSection NamePage
PART I  
PART I  
Item 1.Financial Statements1
   
Item 2.Management's Discussion and Analysis of Financial Conditions and Results of Operations67
   
Item 3.Quantitative and Qualitative Disclosures About Market Risk910
   
Item 4.Controls and Procedures910
   
PART II  
Item 1.Legal Proceedings1011
   
Item 1A.Risk Factors1011
   
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds1011
   
Item 3.Default Upon Senior Securities1011
   
Item 4.Submission Of Matters To A Vote Of Security HoldersSafety Disclosure1011
   
Item 5.Other Information1011
   
Item 6.Exhibits11
   
SignaturesSignatures12
 
 
 
 

PART I
 
ITEM 1. FINANCIAL STATEMENTSSTATNEMENTS

AMANASU ENVIRONMENT CORPORATION
(A Development Stage Company)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

 
June 30,
2013
 
December 31,
2012
  
September 30,
2013
 
December 31,
2012
 
ASSETS          
          
Current Assets:          
Cash $17,841 $3,600  $86,367 $3,600 
Certificates of deposit  1,000  4,000   1,000  4,000 
Total current assets  18,841  7,600   87,367  7,600 
          
Fixed Assets:          
Automotive equipment 25,859 25,859  25,859 25,859 
Less, accumulated depreciation  25,859  25,859   25,859  25,859 
Net fixed assets  -  -   -  - 
          
Other Assets:          
Due from shareholder  -  40,744   -  40,744 
Total other assets  -  40,744   -  40,744 
          
Total Assets $18,841 $48,344  $87,367 $48,344 
          
LIABILITIES AND STOCKHOLDER'S EQUITY          
          
Current Liabilities:          
Accounts payable and accrued expenses $74,969 $62,991  $82,587 $62,991 
Payroll and other taxes payable 27,930 32,223  28,163 32,223 
Due to shareholder 15,792 9,546  15,510 1,281 
Advances from related parties  10,965  -   32,271  8,265 
Total current liabilities  129,656  104,760   158,531  104,760 
          
Stockholder's Equity:          
          
Common stock: authorized 100,000,000 shares of $.001 par value; 44,000,816 issued and outstanding 44,001 44,001 
Common stock: authorized 100,000,000 shares of $.001 par value; 44,100,816 and 44,000,816 issued and outstanding, respectively 44,101 44,001 
Additional paid in capital 4,693,652 4,693,652  4,793,552 4,693,652 
Deficit accumulated during development stage (973,332) (917,895) (1,033,630) (917,895)
Deficit accumulated prior to development stage (3,879,122) (3,879,122) (3,879,122) (3,879,122)
Accumulated other comprehensive income  3,582  2,638   3,535  2,638 
          
Total Amanasu Environment Corporation stockholders’ equity (111,219) (56,726) (71,564) (56,726)
Non controlling interest  404  310   400  310 
          
Total equity  (110,815)  (56,416)  (71,164)  (56,416)
Total Liabilities and Stockholder's Equity $18,841 $48,344  $87,367 $48,344 

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

 
1
 

AMANASU ENVIRONMENT CORPORATION
(A Development Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the ThreeNine Month Periods Ended JuneSeptember 30, 2013 and 2012
(Unaudited)
  September 30,  September 30,  
January 1,
2009
(Date of
Commencement of
Development Stage) to
September 30,
 
  2013  2012  2013 
          
Revenue $-  $-  $- 
Expenses  116,123   122,791   1.072,490 
Operating Loss  (116,123)  (122,791)  (1,072,490)
             
             
Other Income  388   -   388 
Interest income  -   27   13,107 
Debt forgiveness  -   -   13,781 
             
Net Loss  (115,735)  (122,764)  (1,045,214)
             
Net (Income) Loss Attributable to Noncontrolling Interest  -   988   11,584 
             
Net Loss Attributable to Amanasu Environment Corporation  (115,735)  (121,776)  (1,033,630)
             
Other Comprehensive Loss:            
Gain (loss) on foreign currency conversion  987   (175)  10,111 
Attributable to non-controlling interest  (90)  14   (90)
attributable to Amanasu Environment  897   (161)  10,021 
             
Total Comprehensive Loss $(114,838)  (121,937) $(1,023,609)
             
Net Loss Per Share - basic and diluted $-  $-     
Weighted average number of shares outstanding  44,007,776   44,000,816     
 
   
June 30,
2013
   
June 30,
2012
   
January 1,
2009
(Date of
Commencement of
Development
 Stage) to
June 30,
2013
 
             
Revenue $-  $-  $- 
Expenses  28,690   50,447   1.012,192 
Operating Loss  (28,690)  (50,447)  (1,012,192)
             
Other Income  -   -   388 
Interest income  -   13   13,107 
Debt forgiveness  -   -   13,781 
             
Net Loss  (28,690)  (50,434)  (984,916)
             
Net (income) Loss Attributable to Noncontrolling Interest  -   (5)  11,584 
             
Net Loss Attributable to Amanasu Environment Corporation  (28,690)  (50,439)  (973,332)
             
Other Comprehensive Loss:            
Gain (loss) on foreign currency conversion attributable to Amanasu Environment  336   (625)  10,068 
             
Total Comprehensive Loss $(28,354)  (51,064) $(963,264)
             
Net Loss Per Share - basic and diluted $-  $-     
Weighted average number of shares outstanding  44,000,816   44,000,816     

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

 
2
 

AMANASU ENVIRONMENT CORPORATION
(A Development Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the SixThree Month Periods Ended JuneSeptember 30, 2013 and 2012
(Unaudited)
 
 September 30  September 30 
 
June 30,
2013
 
June 30,
 2012
 
January 1,
2009
(Date of
Commencement of
Development
 Stage) to
June 31,
2013
  2013  2012 
                
Revenue $- $- $-  $-  $- 
Expenses  55,825  90,453  1,012,192   60,298   32,338 
Operating Loss (55,825) (90,453) (1,012,192)  (60,298)  (32,338)
        
               
Other Income 388 - 388   -   - 
Interest income - 24 13,107   -   3 
Debt forgiveness  -  -  13,781   -   - 
               
Net Loss (55,437) (90,429) (984,916)  (60,298)  (32,335)
               
Net Loss Attributable to Noncontrolling Interest  -  984  11,584 
Net (Income) Loss Attributable to Noncontrolling Interest  -   4 
               
Net Loss Attributable to Amanasu Environment Corporation (55,437) (89,445) (973,332)  (60,298)  (32,331)
               
Other Comprehensive Loss:               
Gain (loss) on foreign currency conversion 1,038 162 10,162   (51)  (339) 
Attributable to non-controlling interest (94) (13) (94)  4   29 
Attributable to the Company  944  149  10,068 
attributable to Amanasu Environment  (47)  (310) 
               
Total Comprehensive Loss $(54,493)  (89,296) $(963,264) $(60,345)  (32,641)
               
Net Loss Per Share - basic and diluted $- $-     $-  $- 
Weighted average number of shares outstanding  44,000,816  44,000,816     44,021,468   44,000,816 


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

 
3
 

AMANASU ENVIRONMENT CORPORATION and SUBSIDIARY
(A Development Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the SixNine Month Periods Ended JuneSeptember 30,
(Unaudited)
 
 2013 2012 
January 1, 2009
(Date of
Commencement of
Development
Stage) to
June 30,
2013
 
        2013 2012 
January 1, 2009
(Date of
Commencement of
Development Stage) to
September 30, 2013
 
CASH FLOWS FROM OPERATIONS:              
Net loss $(55,437) $(90,429) $(984,916) $(115,735) $(122,764) $(1,045,214)
Adjustments to reconcile net loss to net cash consumed by operating activities:              
Charges not requiring the outlay of cash:              
       
Depreciation - 750 6,074  - 749 6,074 
Write offs of bad debts - - 138,931  - - 138,931 
Cancellation of debts - - (13,781) - - (13,781)
              
Changes in assets and liabilities:              
              
Decrease in prepaid expense -  2,385 -      - 
(Decrease) increase in accounts payable and accrued expenses 12,877  15,190 68,988  20,453 10,549 76,564 
(Decrease) increase in taxes payable - - 27,269  - - 27,269 
Increase in employee loans  -  -  (2,900)  -  -  (2,900)
Net Cash Consumed By Operating Activities (42,560) (72,104) (760,335) (95,282) (111,466) (813,057)
              
       
CASH FLOWS FROM INVESTING ACTIVITIES:              
Cash transferred on sale of subsidiary - - (270) - - (270)
Redemptions of certificates of deposit  3,000  10,000  695,000   3,000  25,000  695,000 
Net Cash Provided By Investing Activities 3,000 10,000 694,730  3,000 25,000 694,730 
              
       
CASH FLOWS FROM FINANCING ACTIVITIES:              
Short term loans - - 14,212  - - 14,212 
Sale of common stock 100,000 - 100,000 
Officer advances   61,166 53,260  - 83,596 53,260 
Officer repayments - - (68,635) - - (68,635)
Shareholder advances 50,000 - 75,082  50,000 - 75,082 
Shareholder repayments - - (3,212) - - (3,212)
Advances from affiliate  3,800  -  4,975   25,048  -  26,223 
              
Net Cash Provided By Finance Activities 53,800 61,166 75,682  175,048 83,596 196,930 
              
Effect on Cash of Exchange Rate Changes 1 (16) 181  1 (15) 181 
              
Net Change in Cash Balances 14,241  (954) 10,258  82,767  (2,885) 78,784 
Cash balance, beginning of period  3,600  9,193  7,583   3,600  9,193  7,583 
Cash balance, end of period $17,841 $8,239 $17,841  $86,367 $6,308 $86,367 

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

 
4
 

AMANASU ENVIRONMENT CORPORATION and SUBSIDIARY
(A Development Stage Company)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JuneSeptember 30, 2013
(Unaudited)


1. BASIS OF PRESENTATION


The unaudited interim consolidated financial statements of Amanasu Environment Corporation and Subsidiary ("the Company") as of JuneSeptember 30, 2013 andDecember 31, 2012 and for the three and sixnine month periods ended JuneSeptember 30, 2013 and 2012,-and the period from inception of development stage through September 30, 2013, have been prepared in accordance with accounting principles generally accepted in the United States of America. In the opinion of management, such information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of such periods. The results of operations of the sixnine month period ended JuneSeptember 30, 2013 are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2013.

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, 2012.
Reclassifications
Certain prior period amounts have been reclassified to conform to the current period presentation.  These reclassifications have no material impact on the previously reported financial position, results of operations and cash flows.
2. SUPPLEMENTAL CASH FLOWS INFORMATION

There were no cash payments for interest or income taxes during any 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 JuneSeptember 30, 2013, and a record of continuing losses. These factors raise substantial doubt about the ability of the Company to continue as a going concern. The financial statements do not include adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue in operation.

4. EXPENSES

Major items included in expense are presented below.


 SIX MONTH PERIODS THREE MONTH PERIODS  NINE MONTH PERIODS THREE MONTH PERIODS 
 2013 2012 2013 2012  2013 2012 2013 2012 
Consulting fees $- $20,000 $- $20,000 
Consulting fees - related party $20,000 $20,000 $20,000 $- 
Travel 8,866 17,308 4,673 3,821  18,369 34,361 9,503 17,053 
Rent 17,157 27,602 8,757 8,343  25,914 36,048 8,757 8,446 
Professional fees 14,928 17,400 10,000 17,400  16,868 18,650 1,940 1,250 
5

AMANASU ENVIRONMENT CORPORATION
(A Development Stage Company)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2013


5. RELATED PARTY TRANSACTIONS

During the sixnine month period ended JuneSeptember 30, 2013 the Company received cash advances of $50,000 from its parent company and $3,800$25,048 from an affiliate.  An accrued compensation award in the amount of $20,000 from prior periodfor the current year is owed to the Company secretary.  The amount accrued from the prior year, also $20,000, has been paid during the current year.
6. ISSUANCE OF COMMON STOCK
On September 11, 2013 100,000 shares of common stock were issued for $100,000.

 
56
 

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
This Form 10Q contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a companies' annual report on Form 10-KSB and other filings made by such company with the United States Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements.
 
The following discussion should be read in conjunction with the Company's Financial Statements, including the Notes thereto, appearing elsewhere in this Quarterly Report and in the Annual Report for the year ended December 31, 2012.
 
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.

 
67
 
 
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 the 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, 2013.
 
Aside from capital raising efforts, the Company has been supporting Amanasu Maritek Corporation,a majority owned subsidiary, 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.
 
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.

 
78
 
 
PLAN OF OPERATION
 
The Company has 3 main objectives during the fiscal year ending December 31, 2013. 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 2 years 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 Coporation. 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 JuneSeptember 30, 2013 was $18,841,$87,367, compared to $7,600 as of December 31, 2012.
 
Total Other Assets as of JuneSeptember 30, 2013 was - nil -, compared to $40,744 as of December 31, 2012.
 
Interest Income for the quarter ended JuneSeptember 30, 2013 was $ 0, compared to $ 133 for the same period of 2012. The decrease is due to the decreased balance in certificates of deposit.
 
The net loss of the three month period ended JuneSeptember 30, 2013 was $28,690,$60,298, compared to $50,434$32,331 for the same period of 2012.
 
LIQUIDITY AND CAPITAL RESOURCES
 
Other than the provision of alternating business planning costs discussed above, the Company's cash requirements for the next 12 months are estimated to be $165,000. This amount is comprised of the following estimate expenditures: $100,000 in annual salaries for office personnel, office expenses and travel, $30,000 for rent, $20,000 for professional fees, and $15,000 for miscellaneous expenses. There are no material commitments for capital at this time other than as described above. The Company and/or Amanasu Maritek will need to issue and sell shares to gain capital for operations.
 
OFF-BALANCE SHEET ARRANAGEMENTS
 
The Company has no off-balance sheet arrangements.
 
 
89
 
 
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 
Not Applicable.
 
ITEM 4. CONTROLS AND PROCEDURES
 
The Company carried out an evaluation of the effectiveness of the Company's disclosure controls and procedures (as defined by Rule 13a-15(e) under the Securities Exchange Act of 1934) under the supervision and with the participation of the Company's Chief Executive Officer and Chief Financial Officer as of a date within 90 days of the filings date of Form 10Q. Based on and as of the date of such evaluation, the aforementioned officers have concluded that the Company's disclosure controls and procedures have 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.
 
 
910
 
 
PART II
 
ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

Not required by smaller reporting companies.

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

None.
One hundred thousand common shares were issued for $100,000.  The proceeds will be used for working capital needs.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
MINE SAFETY DISCLOSURES

None.Not applicable.

ITEM 5. OTHER INFORMATION

None.

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ITEM 6. EXHIBITS

Furnish the Exhibits required by Item 601 of Regulation S-K (229.407 of this chapter).
 
Exhibit 31Certification Pursuant To Section 302 Of The Sarbanes-Oxley Act Of 2002.
  
Exhibit 32Certification Pursuant To Section 906 Of The Sarbanes-Oxley Act Of 2002.
  
101 INSXBRL Instance Document*
  
101 SCHXBRL Schema Document*
  
101 CALXBRL Calculation Linkbase Document*
  
101 DEFXBRL Definition Linkbase Document*
  
101 LABXBRL Labels Linkbase Document*
  
101 PREXBRL 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.

 
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SIGNATURES

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

Amanasu Environment Corporation

Date: August 10,November 19, 2013


/s/ Atsushi Maki
Atsushi Maki
Chief Executive Officer
Chief Financial Officer
Chief Accounting Officer
 
 
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