Amanasu Environment (AMSU) 10-Q 14 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 07, 2018
Document and Entity Information
Entity Registrant Name	AMANASU ENVIRONMENT CORP
Document Type	10-Q
Document Period End Date	Sep. 30, 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	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Current Reporting Status	Yes
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current Assets:
Cash	$ 4,995	$ 5,433
Due from related parties	3,332	0
Total current assets	8,327	5,433
Total Assets	8,327	5,433
Current Liabilities:
Accounts payable and accrued expenses	6,887	6,385
Accrued expenses - related parties	74,770	78,593
Accrued interest - stockholders	48,822	36,067
Taxes payable	29,666	29,933
Loans from shareholder	352,120	278,255
Due to related parties	0	17,238
Total current liabilities	512,265	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	(5,346,418)	(5,283,423)
Accumulated other comprehensive income	5,087	5,001
Total Amanasu Environment Corporation stockholders' deficit	(503,678)	(440,769)
Non controlling interest in subsidiary	(260)	(269)
Total stockholders' deficit	(503,938)	(441,038)
Total Liabilities and Stockholders' Deficit	$ 8,327	$ 5,433

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 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		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Revenue	$ 0	$ 0	$ 0	$ 0
Cost of revenue	0	0	0	0
Gross profit	0	0	0	0
General and administrative expenses	13,128	13,753	50,240	84,885
Total operating expenses	13,128	13,753	50,240	84,885
Operating loss	(13,128)	(13,753)	(50,240)	(84,885)
Other Expense:
Interest expense - stockholders	(4,504)	(3,585)	(12,755)	(10,199)
Net loss before income taxes	(17,632)	(17,338)	(62,995)	(95,084)
Income taxes	0	0	0	0
Net loss	(17,632)	(17,338)	(62,995)	(95,084)
Net loss attributable to non-controlling interest	0	0	0	0
Net loss attributable to Amanasu Environment Corporation Shareholders	(17,632)	(17,338)	(62,995)	(95,084)
Other Comprehensive Income (Loss):
Foreign currency translation adjustment	279	22	95	(399)
Total Comprehensive Loss	(17,353)	(17,316)	(62,900)	(95,483)
Comprehensive income (loss) attributable to non-controlling interest	26	2	9	(36)
Comprehensive loss attributable to Amanasu Environment Corporation Stockholders	$ (17,379)	$ (17,318)	$ (62,909)	$ (95,447)
Net Loss Per Share - basic and diluted	$ 0	$ 0	$ 0	$ 0
Average number of shares outstanding - basic and diluted	44,100,816	44,100,816	44,100,816	44,100,816

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CASH FLOWS FROM OPERATIONS
Net loss	$ (62,995)	$ (95,084)
Changes in assets and liabilities:
Accounts payable and accrued expenses	542	(1,536)
Accrued expenses - related parties	(3,758)	31,125
Accrued interest - stockholders	12,755	10,199
Net cash used in operating activities	(53,456)	(55,296)
CASH FLOWS FROM FINANCING ACTIVITIES
Loan from stockholders	73,865	41,100
Due to related parties	(20,847)	13,200
Net Cash Provided by Financing Activities	53,018	54,300
Net Change In Cash	(438)	(996)
Cash balance, beginning of period	5,433	6,038
Cash balance, end of period	4,995	5,042
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	9 Months Ended
	Sep. 30, 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 September 30, 2018, the results of operations for the three and nine months ended September 30, 2018 and 2017, and cash flows for the nine months ended September 30, 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	9 Months Ended
	Sep. 30, 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 $503,938 and an accumulated deficit of $5,346,418 at September 30, 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 operations to date have been limited to conducting various tests on its technologies and seeking financing. The Company will continue to develop and market its technologies, which the Company believes have great market potential. As such, the Company continues to pursue additional sources of financing. Currently the company is exploring various potential investment partners in Japan, as well as China. There can be no assurances that the Company can secure additional financing. . The present plans, the realization of which cannot be assured, to overcome these difficulties also include, but are not limited to, a continuing effort to investigate business acquisitions and joint ventures.

3. SUMMARY OF SIGNIFICANT ACCOU

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2018
Summary Of Significant Accounting Policies
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	During the nine months ended September 30, 2018, there have been no material changes in the Company’s significant accounting policies to those previously disclosed in the Annual Report. No recently issued accounting pronouncements had or are expected to have a material impact on the Company’s consolidated financial statements.

4. RELATED PARTY TRANSACTIONS

4. RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 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 nine months ended September 30, 2018, the Company borrowed $73,865 from a stockholder. The balance due as of September 30, 2018 and December 31, 2017 were $352,120 and $278,255, respectively. Interest expense associated with these loans were $3,935 and $11,068 for the three and nine months ended September 30, 2018, respectively, as compared to $3,016 and $8,518 for the three and nine months ended September 30, 2017, respectively. Accrued interest on these loans were $40,429 and $29,361 at September 30, 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 September 30, 2018 and December 31, 2017 amounts due to the stockholder were $17,500 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 September 30, 2018 and December 31, 2017, amounts due to the stockholder were $58,558 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 nine months ended September 30, 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 September 30, 2018 and December 31, 2017, respectively. Interest expense associated with this loan were $569 and $1,687 for the three and nine months ended September 30, 2018 as compared to $569 and $1,687 for the three and nine months ended September 30, 2017. No terms for repayment have been established. As a result, the amount is classified as a current liability. Accrued interest on this loan were $8,393 and $6,706 at September 30, 2018 and December 31, 2017, respectively.

5. INCOME TAXES

5. INCOME TAXES	9 Months Ended
	Sep. 30, 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. Under the Tax Act, the NOL deduction for a tax year is equal to the lesser of (1) the aggregate of the NOL carryovers to such year, plus the NOL carry-backs to such year, or (2) 80% of taxable income (determined without regard to the deduction). Generally, NOLs can no longer be carried back but are allowed to be carried forward indefinitely. The amendments incorporating the 80% limitation apply to losses arising in tax years beginning The Company had approximately $63,000 NOL generated in the nine months ended September 30, 2018 in the U.S., which can be used to offset 80 percent of future taxable income and can be carried forward indefinitely.

6. SUBSEQUENT EVENTS

6. SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
6. SUBSEQUENT EVENTS	The Company evaluated subsequent events, which are events or transactions that occurred after September 30, 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 ($)	Sep. 30, 2018	Dec. 31, 2017
Going Concern
Working capital	$ (503,938)
Accumulated deficit	$ (5,346,418)	$ (5,283,423)

4. RELATED PARTY TRANSACTIONS (

4. RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Shareholders And Officers
Due to related party	$ 352,120		$ 352,120		$ 278,255
Accrued interest	40,429		40,429		29,361
Interest expense	3,935	$ 3,016	11,068	$ 8,518
Lina Maki
Due to related party	17,500		17,500		10,000
Stockholder
Due to related party	58,558		58,558		56,433
Amanasu Corp.
Due to related party	50,000		50,000		50,000
Accrued interest	8,393		8,393		$ 6,706
Interest expense	$ 569	$ 569	$ 1,687	$ 1,687