Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 11, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | AMANASU ENVIRONMENT CORP | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Entity Central Index Key | 1,142,801 | |
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 | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash | $ 5,037 | $ 5,433 |
Total current assets | 5,037 | 5,433 |
Total Assets | 5,037 | 5,433 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 6,362 | 6,385 |
Accrued expenses - related parties | 53,023 | 78,593 |
Accrued interest - stockholders | 39,969 | 36,067 |
Taxes payable | 31,737 | 29,933 |
Loans from shareholder | 328,155 | 278,255 |
Due to related parties | 8,121 | 17,238 |
Total current liabilities | 467,367 | 446,471 |
Stockholders' Equity: | ||
Common Stock: authorized 100,000,000 shares of $.001 par value;44,100,816 shares issued and outstanding | 44,101 | 44,101 |
Additional paid in capital | 4,793,552 | 4,793,552 |
Accumulated deficit | (5,304,073) | (5,283,423) |
Accumulated other comprehensive income | 4,417 | 5,001 |
Total Amanasu Environment Corporation stockholders' deficit | (462,003) | (440,769) |
Non controlling interest in subsidiary | (327) | (269) |
Total stockholders' deficit | (462,330) | (441,038) |
Total Liabilities and Stockholders' Deficit | $ 5,037 | $ 5,433 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
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 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Revenue | $ 0 | $ 0 |
Cost of revenue | 0 | 0 |
Gross profit | 0 | 0 |
General and administrative expenses | 16,749 | 52,668 |
Total operating expenses | 16,749 | 52,668 |
Operating loss | (16,749) | (52,668) |
Other Expense: | ||
Interest expense - stockholders | (3,901) | (2,623) |
Net loss before income taxes | (20,650) | (55,291) |
Income taxes | 0 | 0 |
Net loss | (20,650) | (55,291) |
Net loss attributable to non-controlling interest | 0 | 0 |
Net loss attributable to Amanasu Environment Corporation Shareholders | (20,650) | (55,291) |
Other Comprehensive Income (Loss): | ||
Foreign currency translation adjustment | (642) | (516) |
Total Comprehensive Loss | (21,292) | (55,807) |
Less: Comprehensive income (loss) attributable to non-controlling interest | (58) | (46) |
Comprehensive loss attributable to Amanasu Environment Corporation Stockholders | $ (21,234) | $ (55,761) |
Net Loss Per Share - basic and diluted | $ 0 | $ 0 |
Average number of shares outstanding - basic and diluted | 44,100,816 | 44,100,816 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOWS FROM OPERATIONS | ||
Net loss | $ (20,650) | $ (55,291) |
Changes in assets and liabilities: | ||
Increase (decrease) in accounts payable and accrued expenses | (295) | 5,901 |
Increase in accrued expenses - related parties | (26,008) | 10,727 |
Increase in accrued interest - stockholders | 3,902 | 2,623 |
Taxes payable | 0 | 1,450 |
Net cash used in operating activities | (43,051) | (34,590) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Advances from stockholders, net of repayment | 49,900 | 19,200 |
Due to related parties | (7,245) | 23,006 |
Net Cash Provided by Financing Activities | 42,655 | 42,206 |
Effect on cash of exchange rate changes | 0 | (516) |
Net Change In Cash | (396) | 7,100 |
Cash balance, beginning of period | 5,433 | 6,038 |
Cash balance, end of period | 5,037 | 13,138 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 0 | 0 |
Cash paid for income taxes | $ 0 | $ 0 |
1. BASIS OF PRESENTATION
1. BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Text Block [Abstract] | |
1. BASIS OF PRESENTATION | The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position of the Company as of March 31, 2018, the results of operations and cash flows for the three months ended March 31, 2018 and 2017. These results are not necessarily indicative of the results to be expected for the full year or any other period. The December 31, 2017 balance sheet included herein was derived from the audited financial statements included in the Company’s Annual Report on Form 10-K as of that date. Accordingly, the financial statements included herein should be reviewed in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017, as filed with the Securities and Exchange Commission (“SEC”) on April 10, 2018. |
2. GOING CONCERN
2. GOING CONCERN | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Text Block [Abstract] | |
2. GOING CONCERN | 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 a working capital deficiency of $462,330 and an accumulated deficit of $5,304,073 at March 31, 2018, and a record of continuing losses. These factors, among others, 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. The Company's present plans, the realization of which cannot be assured, to overcome these difficulties include, but are not limited to, a continuing effort to investigate business acquisitions and joint ventures. As such, the Company may need to pursue additional sources of financing. There can be no assurances that the Company can secure additional financing. |
3. SUMMARY OF SIGNIFICANT ACCOU
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2018 | |
Summary Of Significant Accounting Policies | |
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | During the three months ended March 31, 2018, there have been no material changes in the Company’s significant accounting policies to those previously disclosed in the Annual Report. |
4. RELATED PARTY TRANSACTIONS
4. RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Text Block [Abstract] | |
4. RELATED PARTY TRANSACTIONS | The Company receives periodic advances from its principal stockholders and officers based upon the Company’s cash flow needs. There is no written loan agreement between the Company and the stockholders and officers. All advances bear interest at 4.45% and no repayment terms have been established. As a result, the amount is classified as a current liability. During the three months ended March 31, 2018, the Company borrowed $49,900 from a stockholder. The balance due as of March 31, 2018 and December 31, 2017 were $328,155 and $278,255, respectively. Interest expense associated with these loans were $3,345 for the three months ended March 31, 2018 as compared to $2,623 for the three months ended March 31, 2017. Accrued interest on these loans were $32,707 and $29,361 at March 31, 2018 and December 31, 2017, respectively. The Company has an arrangement with Lina Maki, a stockholder of the Company, for her management consulting time. The agreement is not written and no payment terms have been established. The fee is $10,000 annually. As of March 31, 2018 and December 31, 2017 amounts due to the stockholder were $12,500 and $10,000, respectively. For the most part, these payments are made by the Company’s affiliate. As such, when the payments are made by the Company’s affiliate or the lease payments are made by the Company on behalf of the affiliate, such amounts are shown as a reduction in or addition to the amount due from affiliate in the accompany balance sheets. The Company also leases it office space from a stockholder of the Company. At March 31, 2018 and December 31, 2017, amounts due to the stockholder were $32,808 and $56,433, respectively. As such, when the lease payments are made by the Company’s affiliate or the lease payments are made by the Company on behalf of the affiliate, such amounts are shown as a reduction in or addition to the amount due from affiliate in the accompany balance sheets. During the three months ended March 31, 2018, the Company paid the stockholder $31,500 for accrued rent. Amanasu Corp. is the principal stockholder of the Company. The balance due to Amanasu Corp. was $50,000 and $50,000 at March 31, 2018 and December 31, 2017, respectively. No terms for repayment have been established. Interest expense associated with this loan were $556 for the three months ended March 31, 2018 as compared to $-0- for the three months ended March 31, 2017. As a result, the amount is classified as a current liability. Accrued interest on this loan were $7,262 and $6,706 at March 31, 2018 and December 31, 2017, respectively. |
5. INCOME TAXES
5. INCOME TAXES | 3 Months Ended |
Mar. 31, 2018 | |
Income Taxes | |
5. INCOME TAXES | Deferred income taxes are recorded to reflect the tax consequences or benefits to future years of any temporary differences between the tax basis of assets and liabilities, and of net operating loss carryforwards. The Company has experienced losses since its inception. As a result, it has incurred no Federal income tax. The Company can carry forward net operating losses (NOL's) to be applied against future profits for a period of twenty years in the U.S. and 80% of the NOL can be carried forward for nine years in Japan. The available NOL’s totaled approximately $3.6 million in the U.S. and $36,000 in Japan at December 31, 2017, which will expire in the years 2018 through 2037. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets us dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the assessment, management has established a full valuation allowance against all of the deferred tax assets relating to the NOL’s for every period because it is more likely than not that all of the deferred tax assets will not be realized. On December 22, 2017, legislation commonly known as the Tax Cuts and Jobs Act, or the Tax Act, was signed in to law. The Tax Act, among other changes, reduces the U.S. federal corporate tax rate from 35% to 21%, requires taxpayers to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. On December 31, 2017, we did not have any earnings from foreign subsidiaries and the international aspects of the Tax Act are not applicable. In connection with the initial analysis of the impact of the Tax Act, we remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. As a result, we recorded a decrease in net deferred tax assets of approximately $500,000 with a corresponding net adjustment to deferred income tax expense. These adjustments were fully offset by a decrease in the valuation allowance. We have completed and recorded the adjustments necessary under Staff Accounting Bulletin No. 118 related to the Tax Act. |
6. NEW AUTHORITATIVE ACCOUNTING
6. NEW AUTHORITATIVE ACCOUNTING GUIDANCE | 3 Months Ended |
Mar. 31, 2018 | |
New Authoritative Accounting Guidance | |
6. NEW AUTHORITATIVE ACCOUNTING GUIDANCE | From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard bodies that may have an impact on the Company’s accounting and reporting. The Company believes that such recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the will not be material to its financial position, results of operations, and cash flows, when implemented. |
7. SUBSEQUENT EVENTS
7. SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
7. SUBSEQUENT EVENTS | The Company evaluated subsequent events, which are events or transactions that occurred after March 31, 2018 through the issuance of the accompanying financial statements and determined that no significant subsequent event need to be recognized or disclosed. |
2. GOING CONCERN (Details Narra
2. GOING CONCERN (Details Narrative) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Going Concern Details Narrative | ||
Working capital | $ 462,330 | |
Accumulated deficit | $ (5,304,073) | $ (5,283,423) |
4. RELATED PARTY TRANSACTIONS (
4. RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Shareholders And Officers | |||
Due to related party | $ 328,155 | $ 278,255 | |
Accrued interest | 32,707 | 29,361 | |
Interest expense | 3,345 | $ 2,623 | |
Lina Maki | |||
Due to related party | 12,500 | 10,000 | |
Stockholder | |||
Due to related party | 32,808 | 56,433 | |
Amanasu Corp. | |||
Due to related party | 50,000 | 50,000 | |
Accrued interest | 7,262 | $ 6,706 | |
Interest expense | $ 556 | $ 0 |