SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------
FORM 10-Q
/X/ Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended May 31, 1997
OR
/ / 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 0-19528
------------------------
AMWEST ENVIRONMENTAL GROUP, INC.
(Exact name of registrant as specified in its charter)
NEVADA
(State or other jurisdiction of
incorporation or organization)
10701 LOS ALAMITOS BLVD.
LOS ALAMITOS, CA
(Address of principal executive offices)
88-289700
(IRS Employer Identification Number)
90720
(Zip code)
(562) 799-1888
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former name, former address and former fiscal year, if changed since last
report)
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, and (2) has been subject to such filing
requirements for the past 90 days.
Yes /X/ No
Common stock, $0.001 per shares par, 50,000,000 authorized, of which
18,305,463 shares were issued and outstanding as of May 31, 1997.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Company Overview
Amwest Environmental Group, the predecessor of Amwest Environmental Group,
Inc. was incorporated in the State of Nevada on September 23, 1992, for the
purpose of engaging in the business of environmental engineering, consulting,
construction and testing. After its merger with Earth Products Advancement,
Inc., the business of Amwest Environmental Group has been carried on by Amwest
Environmental Group, Inc., (the Registrant).
The Registrants Engineering Group services are standards throughout the
industry and derived from Super Fund legislation. Environmental studies include
environmental impact, auditing, contamination surveys, potential evaluations,
remediation (clean-up) and engineering.
The Registrant is in a highly competitive field, as it competes with other
similar business on the local, national and international level. The Registrant
will face substantial competition when bidding for contracts in the public
sector. The Registrant has experience growth in terms of projects finished,
marketing activities and future contracts.
The Registrant is dependent is regulated by both the Federal and State
Governmental Agencies. The principal Federal Laws governing the Registrant
are the resources Conservation and Recovery Act of 1976 (RCRA, 1976) and the
Comprehensive Environmental Response, Compensation and Liability Act of 1980
(CERCLA, 1980). The RCRA, 1976, impacts the Registrant by regulating the
treatment, storage, transportation and disposal of hazardous wastes which have
adverse effects on health and the environment.
The Registrant is dependant on an adequate supply of chemicals to clean-up
projects. The supply of these chemicals is readily available both in the United
States and in the Pacific Rim. Twenty of the thirty employees reside in the US,
the remaining is based in the Pacific Rim.
The Registrants main marketing activities are conducted in the United States
with limited activities in Taiwan, Korea, Mexico and the Peoples Republic of
China. Statistics show that china will require more waste treatment plant than
the whole world combined. The Registrant is concentrating on the Pacific Rim
and plans to expand in that direction.
The Registrants is concentrating their efforts in the Pacific Rim and this
will effect the short term cash flow, but the long term growth potential is
great.
Results of Operations
Balanced Sheet and Operation Statement for
the third quarter ending May 31, 1997
Amwest Environmental Group and Subsidiaries
Consolidated Statement of Operations
for the quarter ending May 31, 1997
(Unaudited)
SALES $ 272,822.73
COST OF SALES 169,516.24
GROSS INCOME 103,306.49
EXPENSES:
Advertising 537.60
Amortization 15,453.50
Auto 1,918.90
Bank Charges 1,521.98
Bond Job 764.51
Commission 4,500.00
Consultation 53,827.59
Depreciation 23,129.45
Franchise Tax 4,000.00
Insurance 2,449.03
Interest 26,767.83
Legal & Accounting 11,619.75
Maintenance & Repair 5,434.92
Meals & Entertainment 3,664.27
Misc. 36,851.96
Office Supplies 3,170.33
Postage 951.38
Rent 57,602.30
Salaries 76,330.31
Taxes & License 1,426.06
Taxes - Property 26,935.46
Taxes - Payroll 12,582.77
Telephone 21,757.65
Travel 1,662.77
Utilities 323.87
Total Expenses $395,184.19
OPERATING INCOME (LOSS): ($291,877.70)
OTHER INCOME (EXPENSE):
Interest Income 2,242.49
Other Income 805.54
NET INCOME (LOSS) ($288,829.67)
Amwest Environmental Group and Subs
Consolidated Balance Sheet
May 31, 1997
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 84,189.37
Accounts receivable 376,006.45
Excess of cost and profit over billing 3,049.00
Total current assets 463,244.82
Fixed assets, at cost,
net of accumulated depreciation 1,845,425.79
Investments 4,631,235.00
Organization costs,
net of accumulated amortization 9,982.64
Other assets 167,425.31
Total assets $7,117,313.56
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 367,891.25
Note payable 93,231.30
Contract payable 12,692.75
Total current liabilities 473,815.30
Contract payable 41,186.60
Note payable 362,500.00
Other payable 621,815.78
Stockholders equity
Common stock 18,304.92
Common stock - UNR 2,166,000.00
Paid in capital 8,123,847.08
Deficit ($4,600,370.70)
--------------
$5,617,995.88
$7,117,313.56
Net loss for the second quarter ending May 31, 1997, was $288,829.67, an
increase from the net loss from the second quarter of February 28, 1997. The
increase in loss is due to the depreciation of the property and the carry cost
to enter the Pacific Rim market.
Part II - OTHER INFORMATION
Item 1. Legal Proceeding: None at present
Item 2. Changes in Securities: Not Applicable
Item 3. Default Upon Senior Securities: Not Applicable
Item 4. Submission of Matters to vote of Security Holders: None
Item 5. Other Information: Not Applicable
Item 6. Exhibits and Reports on form 8-K: No report on form 8-K have been
filed during the second quarter of May 31, 1997.
SIGNATURE
Pursuant to the requirement of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Amwest Environmental Group, Inc.
James C. Lu
Dated: May 31, 1997