Amanasu Environment (AMSU) 10-Q 13 May 22 2022 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2022	May 13, 2022
Cover [Abstract]
Entity Registrant Name	AMANASU ENVIRONMENT CORPORATION
Entity Central Index Key	0001142801
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Mar. 31, 2022
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022
Entity Common Stock Shares Outstanding		44,100,816
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-32905
Entity Incorporation State Country Code	NV
Entity Tax Identification Number	98-0347883
Entity Interactive Data Current	Yes
Entity Address Address Line 1	244 Fifth Avenue
Entity Address Address Line 2	2nd Floor
Entity Address City Or Town	New York
Entity Address State Or Province	NY
Entity Address Postal Zip Code	10001
City Area Code	604
Local Phone Number	790-8799
Security 12g Title	Common Stock $.001 par value

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Current Assets:
Cash	$ 15	$ 37
Total current assets	15	37
Operating lease right-of-use assets	21,634	25,084
Total Assets	21,649	25,121
Current Liabilities:
Accounts payable and accrued expenses	17,254	9,929
Accrued expenses - related parties	139,796	133,245
Accrued interest - stockholders and officers	117,925	112,916
Taxes payable	27,715	29,310
Operating lease liabilities - current	14,242	14,065
Due to affiliate	44,493	39,166
Loans from stockholders and officers	453,496	451,091
Total current liabilities	814,921	789,722
Operating lease liabilities	7,392	11,019
Total Liabilities	822,313	800,741
Stockholders' Deficit:
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	(5,643,840)	(5,618,228)
Accumulated other comprehensive income	5,721	5,204
Total Amanasu Environment Corporation stockholders' deficit	(800,466)	(775,371)
Non-controlling interest	(198)	(249)
Total stockholders' deficit	(800,664)	(775,620)
Total Liabilities and Stockholders' Deficit	$ 21,649	$ 25,121

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
CONSOLIDATED BALANCE SHEETS
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, 2022	Mar. 31, 2021
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Revenue	$ 0	$ 0
Cost of revenue	0	0
Gross profit	0	0
General and administrative expenses	20,603	20,294
Operating loss	(20,603)	(20,294)
Other expense:
Interest expense - stockholders and officers	(5,009)	(4,939)
Loss before income taxes	(25,612)	(25,233)
Income taxes	0	0
Net loss	(25,612)	(25,233)
Net loss attributable to non-controlling interest	0	0
Net loss attributable to Amanasu Environment Corporation Stockholders	(25,612)	(25,233)
Other comprehensive income:
Foreign currency translation adjustment	568	784
Comprehensive loss	(25,044)	(24,449)
Less: Comprehensive income (loss) attributable to non-controlling interest	51	71
Comprehensive loss attributable to Amanasu Environment Corporation Stockholders	$ (25,095)	$ (24,520)
Loss per share - basic and diluted	$ 0	$ 0
Weighted average number of shares outstanding - basic and diluted	44,100,816	44,100,816

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT (Unaudited) - USD ($)	Total	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Accumulated other comprehensive loss	Noncontrolling Interest
Balance, shares at Dec. 31, 2020		44,100,816
Balance, amount at Dec. 31, 2020	$ (697,824)	$ 44,101	$ 4,793,552	$ (5,539,235)	$ 4,115	$ (357)
Net loss	(25,233)			(25,233)
Foreign currency translation adjustment	784				713	71
Balance, shares at Mar. 31, 2021		44,100,816
Balance, amount at Mar. 31, 2021	(722,273)	$ 44,101	4,793,552	(5,564,468)	4,828	(286)
Balance, shares at Dec. 31, 2021		44,100,816
Balance, amount at Dec. 31, 2021	(775,620)	$ 44,101	4,793,552	(5,618,228)	5,204	(249)
Net loss	(25,612)			(25,612)
Foreign currency translation adjustment	568				517	51
Balance, shares at Mar. 31, 2022		44,100,816
Balance, amount at Mar. 31, 2022	$ (800,664)	$ 44,101	$ 4,793,552	$ (5,643,840)	$ 5,721	$ (198)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (25,612)	$ (25,233)
Changes in assets and liabilities:
Accounts payable and accrued expenses	7,566	10,320
Accrued expenses - related parties	6,938	6,938
Accrued interest - stockholders and officers	5,009	4,939
Net cash used in operating activities	(6,099)	(3,036)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans from stockholders and officers	750	1,250
Due to affiliate	5,327	2,900
Net cash provided by financing activities	6,077	4,150
Effect on cash of exchange rate changes	0	0
Net change in cash	(22)	1,114
Balance, beginning of period	37	47
Balance, end of period	15	$ 1,161
Supplemental disclosures of cash flow information:
Cash paid for interest	$ 0

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2022
BASIS OF PRESENTATION
BASIS OF PRESENTATION	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, 2022, the results of operations for the three months ended March 31, 2022 and 2021, and cash flows for the three months ended March 31, 2022 and 2021. These results are not necessarily indicative of the results to be expected for the full year or any other period. The December 31, 2021 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, 2021, as filed with the Securities and Exchange Commission (“SEC”) on April 5, 2022.

GOING CONCERN

GOING CONCERN	3 Months Ended
	Mar. 31, 2022
GOING CONCERN
GOING CONCERN AND UNCERTAINTY	2. GOING CONCERN The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As shown in the consolidated financial statements, the Company had a working capital deficiency of $814,906 and an accumulated deficit of $5,643,840 at March 31, 2022, 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 consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. 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. The Company will also continue to investigate and develop technologies, which the Company believes have great market potential. As such, the Company may need to pursue additional sources of financing or will need to rely on loans from stockholders and officers to support the operations. There can be no assurance that the Company can secure additional financing. The Company’s operations may be affected by the recent and ongoing outbreak of the coronavirus disease 2019 (COVID-19) which in March 2020, was declared a pandemic by the World Health Organization. The ultimate disruption which may be caused by the outbreak is uncertain; however, it may result in a material adverse impact on the Company’s financial position, operations and cash flows. Possible areas that may be affected include, but are not limited to, disruption to the Company’s ability to obtain funding and performing further research on certain projects.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES New Accounting Pronouncements During the three months ended March 31, 2022, 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.

RELATED PARTY TRANSACTIONS AND

RELATED PARTY TRANSACTIONS AND BALANCES	3 Months Ended
	Mar. 31, 2022
RELATED PARTY TRANSACTIONS AND BALANCES
RELATED PARTY TRANSACTIONS	4. RELATED PARTY TRANSACTIONS AND BALANCES The Company receives periodic loans 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 loans bear interest at 4.45%, due on demand 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, 2022 and 2021, the Company borrowed $750 and $1,250 from a stockholder. The balances due as of March 31, 2022 and December 31, 2021 were $400,835 and $400,085, respectively. Interest expense associated with these loans were $4,453 and $4,383 for the three months ended March 31, 2022 and 2021, respectively. Accrued interest on these loans were $101,634 and $97,181 at March 31, 2022 and December 31, 2021, respectively. Amanasu Corp. is the principal stockholder of the Company. The balance due to Amanasu Corp. was $50,000 and $50,000 at March 31, 2022 and December 31, 2021, respectively. No terms of payment have been established and, as a result, the amount is classified as a current liability. The amounts bear interest of 4.45% annually. Interest expenses associated with this loan were $556 and $556 for the three months ended March 31, 2022 and 2021, respectively. Accrued interest on this loan was $16,291 and $15,735 at March 31, 2022 and December 31, 2021, respectively. The Company has an arrangement with a stockholder of the Company to perform consulting services. The agreement is not written, and no payment terms have been established. The fee is $10,000 annually. As of March 31, 2022 and December 31, 2021, amounts due to the stockholder were $52,500 and $50,000, 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 an addition to or reduction in the amount due to affiliate in the accompanying balance sheets. The Company’s executive offices are located at 244 Fifth Avenue 2nd Floor New York, NY 10001 and Vancouver, British Columbia. The total premises in Vancouver are 2,000 square feet and are leased from a stockholder at a monthly rate of $2,500 under a lease agreement which expires October 1, 2023. At March 31, 2022 and December 31, 2021, amounts due to the stockholder were $80,058 and $76,121, respectively. The Company shares the space with Amanasu Techno Holdings Corp. (“ATH”), a reporting company under the Securities Exchange Act of 1934. ATH is responsible for 50% of the rent. The office in New York is rented at the rate of $360 each year and is also shared with ATH. In addition, the Company maintains an office at Suite 905, 1-6-1 Senzoku Taito-Ku Tokyo Japan. The net balance due to ATH at March 31, 2022 was $44,493 as compared to $39,166 at December 31, 2021.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2022
INCOME TAXES
INCOME TAXES	5. INCOME TAXES In accordance with the current tax laws in the U.S., the Company is subject to a corporate tax rate of 21% on its taxable income. No provision for taxes is made for U.S. income tax for the three months ended March 31, 2022 and 2021 as it has no taxable income in the U.S. The Company can carry forward net operating losses (NOL) 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 three years in Japan. The Company had NOL carryforwards of approximately $3.68 million in the U.S. at March 31, 2022. Approximately $3.41 million in the U.S. will expire in the years 2022 through 2037, and $0.27 million can be carried forward indefinitely. 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. 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 NOLs for every period because it is more likely than not that all of the deferred tax assets will not be realized.

OPERATING LEASE LIABILITY

OPERATING LEASE LIABILITY	3 Months Ended
	Mar. 31, 2022
OPERATING LEASE LIABILITY
OPERATING LEASE LIABILITY	6. OPERATING LEASE LIABILITY The Company’s executive offices are located at 244 Fifth Avenue 2nd Floor New York, NY 10001 and Vancouver, British Columbia. The total premises in Vancouver are 2,000 square feet and are leased at a monthly rate of $2,500 under a lease agreement between the Company and the Secretary of the Company’s board of directors who is also the stockholder of the Company, which expires October 1, 2023. The Company shares the space with ATH, a reporting company under the Securities Exchange Act of 1934. Our major stockholder and officer own approximately 86% of ATH’s outstanding shares of common stock. ATH is responsible for 50% of the rent or $1,250 each month. The office in New York is rented at the rate of $360 each year and shares with ATH. In addition, the Company maintains an office at Suite 905, 1-6-1 Senzoku Taito-Ku Tokyo Japan, and the Company pays no rent. The Company’s lease does not provide an implicit rate, and therefore the Company uses an estimated incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. The Company uses an incremental borrowing rate of 5% for operating leases. On October 1, 2019, the Company commenced a lease with a stockholder from October 1, 2019 to September 30, 2021 with a monthly payment of approximately $1,250. As such, the Company recorded $28,492 of right-of-use assets and related operating leases liabilities on October 1, 2019. This asset was fully amortized as of September 30, 2021. On October 1, 2021, the Company commenced a new lease with the same stockholder from October 1, 2021 to September 30, 2023 with a monthly payment of approximately $1,250. As such, the Company recorded $28,492 of right-of-use assets and related operating leases liabilities on October 1, 2021. For the three months ended March 31, 2022 and 2021, the company amortized $3,450 and $3,627 of right-of-use assets, respectively. The following table reconciles the undiscounted future minimum lease under the non-cancelable operating leases with terms of more than one year to the total lease liabilities recognized on the consolidated balance sheet as of March 31, 2022: 2022 – remaining nine months $ 11,250 2023 11,250 Total undiscounted future minimum lease payments 22,500 Less: Difference between undiscounted lease payments and discounted lease liabilities (866 ) Total operating lease liabilities 21,634 Less current portion (14,242 ) Long-term lease liabilities $ 7,392 Total rent expense under operating leases for the three months ended March 31, 2022 and 2021 were $3,750 and $3,750, respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies
COMMITMENTS AND CONTINGENCIES	7. COMMITMENTS AND CONTINGENCIES From time to time, the Company may be involved in litigation relating to claims arising out of its operations in the normal course of business. There are no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of its operations and there are no proceedings in which any of the Company’s directors, officers, or affiliates, or any registered or beneficial stockholder, is an adverse party or has a material interest adverse to the Company’s interest.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2022
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	8. SUBSEQUENT EVENT The Company evaluated subsequent events or transaction that occurred after March 31, 2022 through the issuance date of the accompanying financial statements and determined that no significant subsequent event need to be recognized or disclosed.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
New Accounting Pronouncements	During the three months ended March 31, 2022, 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.

OPERATING LEASE LIABILITY (Tabl

OPERATING LEASE LIABILITY (Tables)	3 Months Ended
	Mar. 31, 2022
OPERATING LEASE LIABILITY
Future minimum lease payments	2022 – remaining nine months $ 11,250 2023 11,250 Total undiscounted future minimum lease payments 22,500 Less: Difference between undiscounted lease payments and discounted lease liabilities (866 ) Total operating lease liabilities 21,634 Less current portion (14,242 ) Long-term lease liabilities $ 7,392

GOING CONCERN (Details Narrativ

GOING CONCERN (Details Narrative) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
GOING CONCERN
Working capital deficiency	$ 814,906
Accumulated deficit	$ (5,643,840)	$ (5,618,228)

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative)	3 Months Ended
	Mar. 31, 2022USD ($)ft²	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)
Interest expense	$ 4,453	$ 4,383
Accrued interest	101,634		$ 97,181
Annual fees	10,000
Balance due	$ 400,835		400,085
Interest rate, all advances	4.45%
Debt borrowed amount	$ 750	1,250
Operating lease, monthly rent	1,250
Vancouver [Member]
Operating lease, monthly rent	$ 2,500
Area of land | ft²	2,000
Expiry date of lease	October 1, 2023
Principle Stockholder
Interest expense	$ 556	$ 556
Accrued interest	16,291		15,735
Balance due	$ 50,000		50,000
Interest rate, all advances	4.45%
Stockholder 1
Balance due	$ 52,500		50,000
Stockholder 2
Balance due	80,058		76,121
Amanasu Techno Holdings
Balance due	44,493		$ 39,166
Rent per annum	$ 360

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
NOL Carryforward description	Approximately $3.41 million in the U.S. will expire in the years 2022 through 2037, and $0.27 million can be carried forward indefinitely.
United States
Operating loss carryforwards (NOL)	$ 3,680

OPERATING LEASE LIABILITY (Deta

OPERATING LEASE LIABILITY (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
OPERATING LEASE LIABILITY
2022 - remaining nine months	$ 11,250
2023	11,250
Total undiscounted future minimum lease payments	22,500
Less: difference between undiscounted lease payments and discounted lease liabilities	(866)
Total operating lease liabilities	21,634
Less current portion	(14,242)	$ (14,065)
Long-term lease liabilities	$ 7,392	$ 11,019

OPERATING LEASE LIABILITY (De_2

OPERATING LEASE LIABILITY (Details Narrative)	3 Months Ended
	Mar. 31, 2022USD ($)ft²	Mar. 31, 2021USD ($)	Oct. 01, 2019USD ($)
Right-of-use assets			$ 28,492
Operating lease, monthly rent	$ 1,250
Right-of-use assets amortized	3,450	$ 3,627
Rent expense	3,750	$ 3,750
Amanasu Techno Holdings
Rent per annum	360
Vancouver [Member]
Operating lease, monthly rent	$ 2,500
Incremental borrowing rate	5.00%
Expiry date of lease	October 1, 2023
Area of land | ft²	2,000