SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended August 31, 2006
File Number 000-50783
AMERICAN ENVIRONMENTAL, INC.
(f/k/a MyZipSoft, Inc.)
(f/k/a Freedom 4 Wireless, Inc.)
(f/k/a MyZipSoft, Inc.)
------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Florida 56-2335301
---------------------------- ----------------
(State or other Jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1016 Clemons Street, Suite 302
Jupiter, Florida 33477
------------------------------------
(Address of principal executive offices)
(561) 880-0004
----------------------------------------------
(Registrant's telephone number, including area code)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15 (d) of the 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.
Yes [ ] No [ X ]
As of August 31, 2006 the issuer had 32,371,547 shares of common stock, $.0001
Par Value, outstanding.
Transitional Small Business Disclosure format: Yes [ ] No [ X ]
Cusip Number: 628703 10 0
CIK Number: 0001290785
AMERICAN ENVIRONMENTAL, INC. FORM 10-QSB AUGUST 31, 2006
(f/k/a MyZipSoft, Inc.)
A Development Stage Enterprise
INDEX
PAGE NO.
PART I FINANCIAL INFORMATION
ITEM 1 FINANCIAL STATEMENTS
Report of Independent Registered Public Accounting Firm... 3
Balance Sheets:
August 31, 2006 and May 31, 2006......................... 4
Statements of Operations:
Three Months Ended August 31, 2006 and 2005 and from
Inception, February 28, 2003 through August 31, 2006..... 5
Statement of Changes in Shareholders' Equity from
Inception February 28, 2003, through August 31, 2006..... 6
Statement of Cash Flows
Three Months Ended August 31, 2006 and 2005 and from
Inception February 28, 2003 through August 31, 2006...... 7
Notes to Financial Statements............................. 9
ITEM 2 Management's Discussion and Analysis or Plan of Operation.....15
ITEM 3 Controls and Procedures.......................................20
PART II OTHER INFORMATION
ITEM 1 Legal Proceedings.............................................21
ITEM 2 Unregistered Sales of Equity Securities and Use of
Proceeds......................................................21
ITEM 3 Defaults Upon Senior Securities...............................21
ITEM 4 Submission of Matters to a Vote Of Security Holders ..........21
ITEM 5 Subsequent Events.............................................21
ITEM 6 Exhibits......................................................21
SIGNATURES AND CERTIFICATIONS........................................21
2
Wieseneck, Andres & Company, P.A.
Certified Public Accountants
772 U.S. Highway 1, Suite 100
North Palm Beach, Florida 33408
(561) 626-0400
Thomas B. Andres, C.P.A.*, C.V.A. FAX (561) 626-3453
Paul M. Wieseneck, C.P.A.
*Regulated by the State of Florida
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders
American Environmental, Inc.
(f/k/a MyZipSoft, Inc.)
A Development Stage Enterprise
Jupiter, Florida
We have reviewed the accompanying balance sheets of American Environmental,
Inc., (f/k/a MyZipSoft, Inc.) a Development Stage Enterprise, as of August 31,
2006, and the related statements of operations, for three month periods ended
August 31, 2006 and 2005 and Inception, February 28, 2003 through August 31,
2006, the statement of changes in stockholders' equity from February 28, 2003
through August 31, 2006 and the statement of cash flows for the three month
periods ended August 31, 2006 and 2005 and Inception, February 28, 2003 through
August 31, 2006 . These financial statements are the responsibility of the
company's management.
We conducted our review in accordance with the standards established by the
Public Company Accounting Oversight Board (United States). A review of interim
financial information consists principally of applying analytical procedures
and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with standards of the Public Company Accounting Oversight Board (United States),
the objective of which is the expression of an opinion regarding the financial
statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the accompanying interim financial statements for them to be in
conformity with U.S. generally accepted accounting principles.
/s/Wieseneck, Andres & Company, P.A.
North Palm Beach, Florida
March 23, 2007
3
AMERICAN ENVIRONMENTAL, INC.
(f/k/a MyZipSoft, Inc.)
A Development Stage Enterprise
BALANCE SHEETS
(UNAUDITED)
AUGUST 31, 2006 MAY 31, 2006
------------ ------------
ASSETS
Current Assets
Cash and Cash Equivalents $ 892 $ 520
Prepaid Expense 2,500 6,861
Note and Loan Receivable 103,555 113,513
Accounts Receivable 132 216
---------- -----------
Total Current Assets 107,079 121,110
---------- -----------
TOTAL ASSETS $ 107,079 $ 121,110
========== ===========
LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities
Current Liabilities
Accounts Payable $ 17,118 $ 10,886
Loans Payable 50,898 56,573
Shareholder Loans Payable 643 24,117
---------- -----------
Total Current Liabilities 68,659 91,576
---------- -----------
Total Liabilities 68,659 91,576
---------- -----------
Stockholders' Equity
Common Stock $.0001 par value:
300 million shares authorized;
Shares issued and outstanding:
32,371,547 at August 31, 2006
and 27,327,714 at May 31, 2006 3,237 2,732
Paid-in Capital 898,268 848,335
Deficit Accumulated during
the Development Stage (863,085) (821,533)
----------- -----------
Total Stockholders' Equity 38,420 29,534
----------- -----------
TOTAL LIABILITIES
& STOCKHOLDERS' EQUITY $ 107,079 $ 121,110
=========== ===========
Read accompanying summary of accounting policies, notes to
financial statements and independent accountants' review report.
4
AMERICAN ENVIRONMENTAL, INC.
(f/k/a MyZipSoft, Inc.)
A Development Stage Enterprise
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED AUGUST 31, 2006 AND 2005
AND FROM INCEPTION, FEBRUARY 28, 2003, THROUGH AUGUST 31, 2006
(UNAUDITED)
INCEPTION
FEBRUARY 28, 2003
THROUGH
2006 2005 AUGUST 31, 2006
------------ ------------ ------------
Revenues
Net Sales $ 212 $ 40 $ 822
Cost of Sales - - (15)
------------ ------------ ------------
Gross Profit 212 40 807
Operating Expenses
General and Administrative 41,367 62,735 325,151
Sales and Marketing 50 - 672
------------ ------------ ------------
Total Operating Expenses (41,417) (62,735) (325,823)
------------ ------------ ------------
Loss from Operations (41,205) (62,695) (325,014)
Other Income (Expense)
Interest Income - - 2,558
Interest Expense (347) - (3,108)
Discontinued Operations - - (537,521)
------------ ------------ ------------
Net Loss $ (41,552) $ (62,695) $ (863,085)
============ ============ ============
Basic and Diluted
Net Loss per Common Share $ (.001) $ (.003)
============ ============
Weighted Average Shares
Outstanding 29,849,630 20,817,164
============ ============
Read accompanying summary of accounting policies, notes to
financial statements and independent accountants' review report.
5
AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.)
A Development Stage Enterprise
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FROM INCEPTION, FEBRUARY 28, 2003, THROUGH AUGUST 31, 2006
(UNAUDITED)
Number At Par Add'l Total
of Value Paid In Accumulated Stockholder
Shares $.0001 Capital (Deficit) Equity
Balance, --------- -------- -------- --------- -----------
February 28, 2003 0 $ 0 $ 0 $ 0 $ 0
Issuance of Common
Stock to eCom eCom 1 - - - -
Cancellation of Common
Stock by eCom eCom (1) - - - -
Issuance of
Common Stock to
eCom eCom
Shareholders 499,503 50 1,950 - 2,000
Net Loss 2003 and 2004 - - - (110,944) (110,944)
Issuance of
Common Stock 9,491,471 949 674,750 - 675,699
Sale of Common Stock
(See Note M) 5,000,000 500 49,500 - 50,000
Net Loss 2005 - - - (584,630) (584,630)
Sale of Common Stock
(See Note M) 5,000,000 500 49,500 - 50,000
Convert Related Party
Debt to Common Stock
(See Note N) 6,336,740 633 62,734 - 63,367
Convert Professional
Fees to Common Stock 1,000,000 100 9,900 - 10,000
Net Loss 2006 - - - (125,959) (125,959)
Convert Related Party
Debt to Common Stock
(See Note N) 4,193,833 419 41,513 - 41,932
Convert Professional
Fees to Common Stock 850,000 85 8,421 - 8,506
Net Loss Year-to-Date - - - (41,552) (41,552)
Balance, ---------- -------- -------- --------- ----------
August 31, 2006 32,371,547 $ 3,237 $898,268 $(863,085) $ 38,420
========== ======== ======== ========== ==========
Read accompanying summary of accounting policies, notes to financial statements
and independent accountants' review report. 6
AMERICAN ENVIRONMENTAL, INC.
(f/k/a MyZipSoft, Inc.)
A Development Stage Enterprise
STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED AUGUST 31, 2006 AND 2005
AND FROM INCEPTION, FEBRUARY 28, 2003, THROUGH AUGUST 31, 2006
(UNAUDITED)
INCEPTION
FEBRUARY 28, 2003
THROUGH
2006 2005 AUGUST 31, 2006
---------- ---------- -----------
Cash Flows From Operating Activities
Cash received from customers $ 377 $ - $ 690
Cash paid to suppliers of goods
and services (31,352) (69,172) (417,769)
Income taxes paid - - -
Interest paid - - (203)
Interest received - - -
---------- ---------- -----------
Net Cash Flows Used in
Operating Activities (30,975) (69,172) (417,282)
---------- ---------- -----------
Cash Flows From Investing Activities - - -
---------- ---------- -----------
Net Cash Flows Provided by
(Used in) Investing Activities - - -
Cash Flows From Financing Activities
Sale of Common Stock 50,438 108,262 150,438
Proceeds of loans from shareholders 23 - 353,473
Repayment of loans
to related parties (15,100) (11,612) (15,100)
Loans from related parties - - 54,272
Loans to related company (4,014) (103,790) (124,909)
---------- ---------- -----------
Net Cash Flows Provided By
(Used In) Financing Activities 31,347 42,859 418,174
---------- ---------- -----------
Net Increase / (Decrease) in Cash 372 (76,312) 892
Cash and Cash Equivalents at
Beginning of Period 520 100,584 0
---------- ---------- -----------
Cash and Cash Equivalents at
End of Period $ 892 $ 24,271 $ 892
========== ========== ===========
Read accompanying summary of accounting policies, notes to
financial statements and independent accountants' review report.
7
AMERICAN ENVIRONMENTAL, INC.
(f/k/a MyZipSoft, Inc.)
A Development Stage Enterprise
STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED
AUGUST 31, 2006 AND 2005
(UNAUDITED)
Reconciliation of Net Loss to Net Cash Flows Used in Operating Activities
2006 2005
------------ ------------
Net Income (Loss) $ (41,552) $ (62,695)
Add items not requiring outlay of cash:
Depreciation - -
Convert related party debt to equity - -
Convert professional fees to equity - -
Cash was increased by:
Decrease in accounts receivable (16) -
Decrease in prepaid assets 4,361 -
Increase in accounts payable 6,232 -
Cash was decreased by:
Decrease in accounts payable - (5,927)
Increase in prepaid assets - (550)
------------ ------------
Net Cash Flows Used in
Operating Activities $ (30,975) $ (69,172)
============ ============
Read accompanying summary of accounting policies, notes to
financial statements and independent accountants' review report.
8
AMERICAN ENVIRONMENTAL, INC.
(f/k/a MyZipSoft, Inc.)
A Development Stage Enterprise
NOTES TO FINANCIAL STATEMENTS
NOTE A - HISTORY AND DESCRIPTION OF BUSINESS
Pursuant to SEC Staff Legal Bulletin No. 4, eCom decided to spin off American
Environmental, Inc.,(f/k/a MyZipSoft, Inc.) into an independent company in the
belief that the independent company, with a distinct business, would be better
able to obtain necessary funding and develop their business plans.
American Environmental, Inc.,(f/k/a MyZipSoft, Inc.) was incorporated in the
State of Florida on February 28, 2003 as a wholly owned subsidiary of eCom
eCom.com, Inc.
On December 1, 2003, the Board of Directors of eCom eCom.com, Inc., approved
the spin-off of American Environmental, Inc. (f/k/a MyZipSoft, Inc.).
eCom eCom.com, Inc. spun off American Environmental, Inc.,(f/k/a MyZipSoft,
Inc.) on March 4, 2004.
On November 2, 2005, MyZipSoft, Inc. changed its name to American
Environmental, Inc.
The Company does not have any off-balance sheet arrangements.
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION, USE OF ESTIMATES
The Company maintains its accounts on the accrual basis of accounting. The
preparation of financial statements in conformity with U.S. generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
REVENUE RECOGNITION
Product revenue is recognized when the product is shipped. Service revenue is
recognized when the service is complete. Dividends from investments are
recognized when declared payable by the underlying investment. Capital gains
and losses are recorded on the date of the sale of the investment.
CASH
Cash consists of deposits in banks and other financial institutions having
original maturities of less than ninety days.
ALLOWANCE FOR DOUBTFUL ACCOUNTS
It is the policy of management to review the outstanding accounts receivable at
each year end, as well as the bad debt write-offs experienced in the past, in
order to establish an allowance for doubtful accounts for uncollectible
amounts.
9
AMERICAN ENVIRONMENTAL, INC.
(f/k/a MyZipSoft, Inc.)
A Development Stage Enterprise
NOTES TO FINANCIAL STATEMENTS
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
DEPRECIATION
Property and equipment is recorded at cost and depreciated over the
estimated useful lives of the related assets. Depreciation is computed
using the straight-line method.
AMORTIZATION
The accounting for a recognized intangible asset acquired after June 30, 2001
is based on its useful life to the Company. If an intangible asset has a finite
life, but the precise length of that life is not known, that intangible asset
shall be amortized over management's best estimate of its useful life. An
intangible asset with an indefinite useful life is not amortized. The useful
life to an entity is the period over which the asset is expected to contribute
directly or indirectly to the future cash flows of that entity.
RECLASSIFICATION
Certain reclassifications have been made to the prior year financial
statements in order for them to be in conformity with the current year
presentation.
NOTE C - NOTE AND LOANS RECEIVABLE
The notes and loans receivable at August 31, 2006 and May 31, 2006 are non-
interest bearing, non collateralized and due on demand. Green Energy Group, Inc.
owes the company $7,000, Amenviro Corp. owes the company $54,055.
The Note receivable dated June 1, 2005 is with Miami Filter, LLC in an original
amount of $50,000. The note is non-collateralized and matured on September 1,
2005. On July 27, 2006, a payment of $7,500 was made toward the principal of
this Note.
NOTE D - DEVELOPMENT STAGE COMPANY
The Company has been and is currently in the development stage. It is the
intention of management to merge or acquire a company engaged in the insurance,
environmental, or energy business.
NOTE E - PREPAID EXPENSES
The Company has prepaid expenses at August 31, 2006 and May 31, 2006 in the
amounts of $2,500 and $6,861, respectively, which consist of professional
consulting fees paid in advance.
NOTE F - CHANGE OF COMMON SHARES AUTHORIZED
The Company changed the number of common shares authorized from 100 to 300
million with the state of Florida on January 25, 2005. The par value of the
common stock remains at $0.0001 per share.
10
AMERICAN ENVIRONMENTAL, INC.
(f/k/a MyZipSoft, Inc.)
A Development Stage Enterprise
NOTES TO FINANCIAL STATEMENTS
NOTE G - SHAREHOLDER LOANS AND LOANS PAYABLE
The Loans Payable at August 31, 2006 and May 31, 2006, in the amounts of
$50,898 and $56,573, respectively, are non-interest bearing, non-collateralized
and due on demand.
The Stockholder Loans Payable in the amounts of $643 and $24,117 at August 31,
2006 and May 31, 2006, respectively, are non-interest bearing, non-
collateralized and due on demand.
NOTE H - INCOME TAXES
No provision for federal and state income taxes has been recorded because the
Company has incurred net operating losses since inception. The Company's net
operating loss carryforward as of August 31, 2006 totals approximately $860,000.
These carry forwards, which will be available to offset future taxable income,
expire beginning in 2024.
The Company accounts for income taxes in accordance with FASB Statement No.
109, Accounting for Income Taxes (FASB 109). Under FASB 109, income taxes are
provided for the tax effects of transactions reported in the financial
statements and consist of taxes currently due plus deferred taxes related to
certain income and expenses recognized in different periods for financial and
income tax reporting purposes. Deferred tax assets and liabilities represent
the future tax return consequences of those differences, which will either be
taxable or deductible when the assets and liabilities are recovered or settled.
Deferred taxes also are recognized for operating losses and tax credits that are
available to offset future taxable income and income taxes, respectively. A
valuation allowance is provided if it is more likely than not that some or all
of the deferred tax asset will not be realized. See Note J.
NOTE I - STOCKHOLDERS' EQUITY
The computation of diluted loss per share does not include shares from
potentially dilutive securities as the assumption of conversion or exercise of
these would have an antidilutive effect on loss per share. In accordance with
generally accepted accounting principles, diluted loss per share is calculated
using the same number of potential common shares as used in the computation of
loss per share before extraordinary items.
NOTE J - DEFERRED TAX ASSET
Deferred income taxes are provided for temporary differences between the
financial reporting and income tax basis of the Company's assets and
liabilities. Temporary differences, net operating loss carry forwards and
valuation allowances comprising the net deferred taxes on the balance sheets are
as follows:
11
AMERICAN ENVIRONMENTAL, INC.
(f/k/a MyZipSoft, Inc.)
A Development Stage Enterprise
NOTES TO FINANCIAL STATEMENTS
NOTE J - DEFERRED TAX ASSET (CONTINUED)
AUGUST 31, 2006
----------------
Loss carry forward for tax purposes $ 860,000
================
Deferred tax asset (34%) (292,400)
Valuation allowance 292,400
----------------
Net deferred tax asset $ 0
================
The Company does not believe that the realization of the related net deferred
tax asset meets the criteria required by generally accepted accounting
principles and, accordingly, the deferred income tax asset arising from such
loss carry forward has been fully reserved.
NOTE K - RELATED PARTY TRANSACTIONS
The Company is allocated certain expenses such as rent, travel and office &
administrative that are paid on behalf of the Company by American Capital
Holdings, Inc., a company that is related to the Company by mutual stockholders
and directors. The total of expenses allocated to the Company in the three
months ended August 31, 2006 is approximately $16,168. A portion of the
liabilities payable to American Capital are converted to common stock and paid
in capital at the end of each reporting period.
NOTE L - RECENT ACCOUNTING PRONOUNCEMENTS
The FASB issued SFAS No. 150, Accounting for Certain Financial Instruments with
Characteristics of both Liabilities and Equity, and is effective for financial
instruments entered into after May 31, 2003. This Statement establishes
standards for how an issuer classifies and measures in its statement of
financial position certain financial instruments with characteristics of both
liabilities and equity. It requires that an issuer classify a financial
instrument that is within its scope as a liability because that financial
instrument embodies an obligation of the issuer.
Statement of Financial Accounting Standards No. 151, Inventory Costs, is an
amendment of ARB No. 43, Chapter 4 and is effective for inventory costs incurred
during fiscal years beginning after June 15, 2005. This statement amends ARB
43, Chapter 4, to clarify that abnormal amounts of idle facility expense,
freight, handling costs, and wasted materials (spoilage) should be recognized as
current-period charges. In addition, this Statement requires that allocation of
fixed production overheads to the costs of conversion be based on the normal
capacity of the production facilities.
Statement of Financial Accounting Standards No. 152, Accounting for Real Estate
Time-Sharing Transactions, is an amendment of FASB Statements No. 66 and 67.
12
AMERICAN ENVIRONMENTAL, INC.
(f/k/a MyZipSoft, Inc.)
A Development Stage Enterprise
NOTES TO FINANCIAL STATEMENTS
NOTE L - RECENT ACCOUNTING PRONOUNCEMENTS - (CONTINUED)
Statement of Financial Accounting Standards No. 153, Exchanges of Nonmonetary
Assets, was issued in December 2004. The guidance in APB No. 29, Accounting for
Nonmonetary Transactions, is based on the principle that exchanges of
nonmonetary assets should be measured based on the fair value of the assets
exchanged. The guidance in that Opinion, however, included certain exceptions
to that principle. This Statement amends Opinion 29 to eliminate the exception
for nonmonetary exchanges of similar productive assets and replaces it with a
general exception for exchanges of nonmonetary assets that do not have
commercial substance. A nonmonetary exchange has commercial substance if the
future cash flows of the entity are expected to change significantly as a result
of the exchange.
Statement of Financial Accounting Standards No. 154, Accounting Changes and
Error Corrections, was issued in May 2005. This Statement requires
retrospective application to prior periods' financial statements of changes in
accounting principle, unless it is impracticable to determine either the
period-specific effects or the cumulative effect of the change. When it is
impracticable to determine the period-specific effects of an accounting change
on one or more individual prior periods presented, this Statement requires that
the new accounting principle be applied to the balances of assets and
liabilities as of the beginning of the earliest period for which retrospective
application is practicable and that a corresponding adjustment be made to the
opening balance of retained earnings (or other appropriate components of equity
or net assets in the statement of financial position) for that period rather
than being reported in an income statement. When it is impracticable to
determine the cumulative effect of applying a change in accounting principle to
all prior periods, this Statement requires that the new accounting principle be
applied as if it were adopted prospectively from the earliest date practicable.
This Statement requires that retrospective application of a change in accounting
principle be limited to the direct effects of the change. Indirect effects of a
change in accounting principle, such as a change in nondiscretionary
profit-sharing payments resulting from an accounting change, should be
recognized in the period of the accounting change. This Statement also requires
that a change in depreciation, amortization, or depletion method for long-lived,
nonfinancial assets be accounted for as a change in accounting estimate by a
change in accounting principle. This Statement carries forward without change
the guidance contained in Opinion 20 for reporting the correction of an error in
previously issued financial statements and a change in accounting estimate.
This Statement also carries forward the guidance in Opinion 20 requiring
justification of a change in accounting principle on the basis of preferability.
Statement of Financial Accounting Standards No. 155, Accounting for Certain
Hybrid Financial Instruments, was issued in February 2006. This Statement
permits fair value remeasurement for any hybrid financial instrument that
contains an embedded derivative that otherwise would require bifurcation;
clarifies which interest-only strips and principle-only strips are not subject
to the requirements of Statement 133; establishes a requirement to evaluate
interests in securitized financial assets to identify interests that are
13
AMERICAN ENVIRONMENTAL, INC.
(f/k/a MyZipSoft, Inc.)
A Development Stage Enterprise
NOTES TO FINANCIAL STATEMENTS
NOTE L - RECENT ACCOUNTING PRONOUNCEMENTS - (CONTINUED)
freestanding derivatives or that are hybrid financial instruments that contain
an embedded derivative requiring bifurcation; clarifies that concentrations of
credit risk in the form of subordination are not embedded derivatives, and
amends Statement 140 to eliminate the prohibition on a qualifying
special-purpose entity from holding a derivative financial instrument that
pertains to a beneficial interest other than another derivative financial
instrument.
Statement of Financial Accounting Standards No. 156, Accounting for Servicing of
Financial Assets, was issued in March 2006. This Statement requires an entity
to recognize a servicing asset, a contract to service financial assets under
which the estimated future revenues from contractually specified servicing fees,
late charges, and other ancillary revenues are expected to more than adequately
compensate the servicer for performing the servicing, or servicing liability, a
contract to service financial assets under which the estimated future revenues
from contractually specified servicing fees, late charges, and other ancillary
revenues are not expected to adequately compensate the servicer for performing
the servicing, each time it undertakes an obligation to service a financial
asset by entering into a servicing contract.
SFAS No's. 150, 151, 152, 153, 154, 155 and 156 were adopted by the company and
did not have a material effect on the Company's financial position or results of
operations.
NOTE M - COMMON STOCK
American Capital Holdings, Inc., a related company in that it was also a
company spun off from eCom eCom.com, Inc., acquired 5 million shares of
American Environmental, Inc. common stock on May 31, 2005 for $50,000 and an
additional 5 million shares for $50,000 in June 2005. See Note A.
American Capital Holdings, Inc. distributed the 10 million common shares to its
shareholders in the form of a dividend. The 6,336,740 common shares distributed
to American Capital Holdings, Inc. as partial payment of its accounts payable
were also distributed to the stockholders, prorata, of American Capital Holdings
on August 7, 2006. See Note N. By definition, American Environmental, Inc. is
not a wholly owned subsidiary of American Capital Holdings, Inc. in that
American Capital Holdings does not directly or indirectly own over fifty (50)
percent of the outstanding voting shares of American Environmental, Inc.
NOTE N - SHAREHOLDER LOAN, RELATED COMPANY ACCOUNTS PAYABLE
The Company had a portion of its prior and current year accounts payable such as
rent, administrative costs, tax preparation, SEC filing costs, etc. paid by a
related company for the benefit of American Environmental, Inc. The related
company invoiced American Environmental, Inc. for the expenses it paid on its
behalf. In the year ended May 31, 2006, American Environmental, Inc. reduced a
portion of its outstanding accounts payable to the related company by $63,367 by
14
AMERICAN ENVIRONMENTAL, INC.
(f/k/a MyZipSoft, Inc.)
A Development Stage Enterprise
NOTES TO FINANCIAL STATEMENTS
issuing the company 6,336,740 shares of its common voting shares. See Note M
relating to the distribution of these shares. During the quarter ended August
31, 2006, the Company issued an additional 3,176,775 shares to reduce accounts
payable to American Capital Holdings. The Company has reduced its accounts
payable balance due to American Capital Holdings at August 31, 2006 to $0.
NOTE O - DISCONTINUED OPERATIONS
The Company invested in certain wireless software operations for homeland
security in 2004 and 2005. In 2005, management decided to change the direction
of the Company towards insurance, environmental or energy applications and,
therefore, decided to abandon all of its current and prior operations and
investments in the area of homeland security. No sales were recorded in the year
ended May 31, 2005 that relate to homeland security. The loss of $540,000
recognized in 2005 consisted primarily of the write off of assets, that
consisted principally of inventory, equipment, and various software
applications.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
The following discussion should be read in conjunction with the accompanying
financial statements for the three month periods ended August 31, 2006 and 2005
and the Form 10-KSB for the fiscal year ended May 31, 2006.
Special Note Regarding Forward-Looking Statements
Certain statements in this report and elsewhere (such as in other filings by the
Company with the Securities and Exchange Commission ("SEC"), press releases,
presentations by the Company of its management and oral statements) may
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Words such as "expects,"
"anticipates," "intends," "plans," "believes," "seeks," "estimates," and
"should," and variations of these words and similar expressions, are intended to
identify these forward-looking statements. The company's actual results
could differ materially from those anticipated in these forward-looking
statements. Factors that might cause or contribute to such differences include,
among others, failure to complete a merger or acquisition with a privately owned
operating business that is generating substantial revenues, success of the
Company's business operations, failure to obtain sufficient capital to fund
those operations, and failure to meet the qualifications for listing of the
Company's stock on a major stock exchange. The Company undertakes no obligation
to publicly release the result of any revisions to these forward-looking
statements, which may be made to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.
History of Spin-Off Company:
On November 29, 2004 an involuntary petition was filed against eCom under
Chapter 11, Title 11 of the United States Bankruptcy Code in the United States
Southern District of Florida Bankruptcy Court in re: Case No. 04-35435-BKC-SHF.
15
AMERICAN ENVIRONMENTAL, INC.
(f/k/a MyZipSoft, Inc.)
A Development Stage Enterprise
On May 16, 2005 an Order was entered by the Honorable Judge Steven H. Friedman
whereby eCom entered into Chapter 11 proceedings. During this May 16, 2005
hearing, Judge Friedman ordered eCom ("the Debtor"), to retain outside legal
counsel to represent the Company in the aforementioned bankruptcy proceedings.
Judge Friedman also ordered the Debtor to file the appropriate bankruptcy
schedules by no later than June 5, 2005.
On June 2, 2005, based on (a) the February 28, 2005 legal opinion eCom obtained
from James C. Volpi, Esq.; (b) the prior SEC 8K filings (put in accession
acceptance numbers) by eCom concerning the spinoff of certain former subsidiary
companies of eCom; (c) the prior press releases issued by the former CEO of
eCom; (d) the May 16, 2005 Court Order entered by the Honorable Judge Steven H.
Friedman adjudicating eCom into Chapter 11 Bankruptcy proceedings, the acting
CEO of eCom, Richard C. Turner, caused the issuance of the spinoff shares (via
the administrative efforts of petitioning creditor American Capital Holdings,
Inc.) procured the necessary SEC CIK numbers as well as Standard & Poors Cusip
numbers and issued the common shares of the following below listed companies
with a shareholder record date of May 31, 2005.
No. Name of Subsidiary Company S&P Cusip No. SEC CIK No.
-------------- ----------------
1 American Environmental, Inc. (1) 628703 10 0 0001290785
2 Green Energy Group, Inc. (2) 74270Q 10 0 0001321500
3 Diamond Energy Partners, LP (3) 000303 10 7 0001321506
4 Click to Raffle.com (4) 00089Y 10 9 0001321499
5 Core Medical Group, Inc. (5) 869894 10 5 0001321510
6 CRT Holdings, Inc. (6) 90341K 10 4 0001321508
7 A Super Deal.com, Inc. 00210R 10 6 0001321507
8 eSecureSoft Company 296423 10 6 0001321511
(1) Name change filed with Florida Div. of Corporations on 11/02/05, formerly
known as MyZipSoft, Inc.
(2) Name change filed with Florida Div. of Corporations on 08/02/06, formerly
known as ProCard Corporation.
(3) Name change filed with Florida Div. of Corporations on 08/19/05, formerly
known as AAB National Company.
(4) Name change filed with Florida Div. of Corporations on 11/30/05, formerly
known as A Classified Ad, Inc.
(5) Name change filed with Florida Div. of Corporations on 08/03/06, formerly
known as Swap and Shop.net Corp.
(6) Name change filed with Florida Div. of Corporations on 11/30/05, formerly
known as USAS Digital Inc.
The legal basis for issuing these shares was Section 1107 of the Bankruptcy
Code whereby this section of the code places the debtor-in-possession in the
position of a fiduciary, with the rights and powers of a chapter 11 trustee,
and requires the performance of all but the investigative functions and
duties of a trustee. These duties are set forth in the Bankruptcy Code and
Federal Rules of Bankruptcy Procedure. 11 U.S.C. Section 1106, Section 1107.
Such powers and duties include protecting the assets of the estate,
16
AMERICAN ENVIRONMENTAL, INC.
(f/k/a MyZipSoft, Inc.)
A Development Stage Enterprise
accounting for property, examining, objecting and/or eliminating potential
claims (which potential claims were the case with the spin-off equity
security holders who had not received their shares as promised), and filing
informational reports as required by the court and the United States trustee,
such as monthly operating reports. The debtor-in-possession also has many of
the other powers and duties of a trustee including the right, with the
court's approval, to employ attorneys, accountants, appraisers, auctioneers,
or other professional persons to assist the debtor during its bankruptcy
case. Other responsibilities include filing tax returns and filing such
reports as are necessary or as the court orders after confirmation, such
as a final accounting. The United States trustee is responsible for
monitoring the compliance of the debtor in possession with the reporting
requirements.
On June 2, 2005, as ordered by Judge Friedman on May 16, 2005, eCom filed
its Chapter 11 Bankruptcy schedules with the United States Southern District
of Florida Bankruptcy Court. A June 5, 2005 hearing was held in front of
Judge Steven H. Friedman regarding the pending motions for: (a) the approval
of eCom's bankruptcy legal counsel, Kluger, Peretz, Kaplan & Berlin, P.A.; (b)
the approval of Barney A. Richmond to become Chief Executive Officer of eCom;
and (c) the preliminary approval of One Hundred Thousand ($100,000) of Debtor-
In-Possession financing for eCom to be provided by petitioning creditor,
American Capital Holdings, Inc. On June 6, 2005, court orders were issued by
Judge Friedman approving the employment of Kluger, Peretz, Kaplan & Berlin, P.L
as eCom's bankruptcy legal counsel and the approval of Barney A. Richmond as
CEO of eCom. Copies of these June 6, 2005 court orders are attached herein as
Exhibit 99.1. A copy of the June 5, 2005 Court transcript is obtainable on
eCom's website under www.ecomecom.net under the section titled "Bankruptcy
News". On June 14, 2005, an Interim Order was entered on the Post Petition
$100,000 eCom Debtor-In-Possession financing provided by American Capital
Holdings, Inc., with the final hearing approval date being set for July 25,
2005. A copy of this June 14, 2005 Order is appended as Exhibit No. 99.2.
On July 8, 2005, eCom filed an 8K information statement with the United
States Securities & Exchange Commission ("SEC") listing the SEC CIK and
Standard & Poors' Cusip numbers on the former above referenced subsidiary
spin-off companies. On July 12, 2005 each of these spin-offs filed Form
10SBG12's with the SEC.
On July 18, 2005 all of these above referenced companies received a letter
from the Securities and Exchange Commission asking each company to provide
legal analysis for the "spin-off" share issuance. A copy of this letter is
enclosed herein as Exhibit No. 99.3
On July 20, 2005, Debtor eCom filed a Motion To Limit Notice in the Southern
District of Florida Bankruptcy Court for permission to perfect notice to
all interested parties via the Company's website. On July 25, 2005 a Court
Order was entered by Judge Friedman granting this Motion To Limit Notice and
the use of electronic service to notice shareholders. A copy of this Motion
and Order is affixed herein as Exhibit No. 99.4.
17
AMERICAN ENVIRONMENTAL, INC.
(f/k/a MyZipSoft, Inc.)
A Development Stage Enterprise
On August 4, 2005 Judge Friedman issued: (a) an Order For Relief and Notice
of Section 341 Meeting of Creditors; (b) an Order Granting Debtor-in-
Possession's Motion For Authorization to: (II) Provide Electronic Service Upon
Equity Security Holders and (II) Utilize Executive Mail Service for Purposes of
Coordinating and Effectuating Service Upon Equity Security Holders; and (c) the
Final Order Authorizing Debtor-in-Possession Financing.
In an effort to give the SEC an answer regarding their request for detailed
clarification as to the legal analysis of the spin-off companies and to comply
with the request to withdraw each of the above referenced spin-off companies'
Form 10SBG12, on August 15, 2005 each spin-off company withdrew their respective
July 8, 2005 Form 10SBG12 filings. On August 15, 2005 Barney A. Richmond filed
a reply with the SEC regarding their July 18, 2005 correspondence. A copy of
Mr. Richmond's legal analysis is enclosed as Exhibit No. 99.5.
On May 3, 2006 the United States Trustee filed a Motion To Dismiss Case or
Convert Case to a Chapter 7. On May 5, 2005 the United States Trustee filed
a Notice of Hearing set for June 19, 2005. On June 13, 2006 a letter was
written to the United States Trustee's Office from Michael Yetnikoff, Esq.
of Schiff-Hardin L.P. The purpose of Mr. Yetnikoff's correspondence was to
request a thirty (30) day extension to this June 19, 2006 hearing to allow
the SEC the time to review eCom's proposed Reorganization Plan and Disclosure
Statement. Mr. Yetnikoff's firm represents petitioning creditors and Plan
Proponent, American Capital Holdings, Inc. During the period from July thru
August, 2006, the Debtor's attorney of Kluger, Peretz, Kaplin & Berlin and Mr.
Yetnikoff of Schiff-Hardin, LP were in frequent contact with the SEC offices in
Atlanta, Georgia regarding eCom's Joint Plan of Reorganization and Disclosure
Statement. On July 10, 2006, the Company's attorneys received written notice
from the SEC to leave the treatment of the eCom spinoff companies as is. On
August 25, 2006 the Joint Plan of Reorganization and Disclosure Statement was
filed by the Debtor, eCom and Petitioning Creditor American Capital Holdings,
Inc. On September 7, 2006 the SEC notified the eCom's and American Capital
Holdings, Inc's attorneys there were no unsatisfied comments regarding the
Plan and Disclosure Statement.
On December 28, 2006, an Order by the Honorable Judge Steven H. Friedman (I)
Approving Disclosure Statement; (II) Setting Hearing On Confirmation Of Plan;
(III) Setting Hearing on Fee Applications; (IV) Setting Various Deadlines; And
(V) Describing Plan Proponents Obligations. On January 3, 2007 an amended
Joint Plan of Reorganization and Disclosure Statement was filed by the Debtor,
eCom and Petitioning Creditor American Capital Holdings, Inc., which was also
reviewed by the SEC. A copy of the Amended Joint Plan of Reorganization and
Disclosure Statement can be viewed on the eCom November 30, 2006 Form 10QSB
filed on January 16, 2007, SEC accession number 0001000459-07-000001 Exhibits
99.1 and 99.2. All ballots and/or any objections regarding the Joint Plan of
Reorganization and Disclosure were due to be filed with the Bankruptcy Court by
March 2, 2007. A Confirmation Hearing And Hearing On Fee Applications has been
scheduled for March 12, 2007 @ 1:30 p.m. at the United States Bankruptcy Court,
Southern District of Florida, 1515 North Flagler Drive, Room 801, Courtroom B,
West Palm Beach, Florida 33401.
18
AMERICAN ENVIRONMENTAL, INC.
(f/k/a MyZipSoft, Inc.)
A Development Stage Enterprise
A transcript of the March 12, 2007 hearing is attached as Exhibit 99.6. As soon
as final orders are given by the bankruptcy court, they will posted on the eCom
website www.ecomecom.net.
In an abundance of caution to avoid any bankruptcy solicitation rules and to
allow time to procure clarification/court approvals on eCom's Joint Plan of
Reorganization & Disclosure Statement, the Company (list each) withheld filing
its 10QSB filings for the quarterly periods of August 31, 2006 and November 30,
2006 until after the March 2, 2007 Deadline For Filing Ballots Accepting Or
Rejecting Plan. Additionally, as a result of the aforementioned bankruptcy
proceedings the Company has purposely postponed acquisition and funding
commitment discussions until after the March 12, 2007 hearing is completed.
The Company has had no recent revenues or earnings from operations. The Company
will sustain operating expenses without corresponding revenues. This will result
in the Company incurring net operating losses until the Company can realize
profits from the business ventures it intends to acquire.
The success of the Company's proposed plan of operation will depend primarily
on the success of the Company's business operations and the realization of the
business' perceived potential. The funding of this proposed plan will require
significant capital. There can be no assurance that the Company will be
successful or profitable if the Company is unable to raise the funds to provide
this capital, or to otherwise locate the required capital for the operations of
the business.
If, for any reason, the Company does not meet the qualifications for listing on
a major stock exchange, the Company's securities may be traded in the over-the-
counter ("OTC") market. The OTC market differs from national and regional stock
exchanges in that it (1) is not sited in a single location but operates through
communication of bids, offers and confirmations between broker-dealers and
(2)securities admitted to quotation are offered by one or more broker-dealers
rather than the "specialist" common to stock exchanges.
RESULTS OF OPERATIONS
- ---------------------
Comparison of the three months ended August 31, 2006
with the three months ended August 31, 2005
- -------------------------------------------------------------------
Revenue and gross profit for the three month period ended August 31, 2006 was
$212 compared to $40 recorded during the quarter ended August 31, 2005.
Cost of sales was $0 for both three month periods.
Operating expenses for the three months ended August 31, 2006 totaled $(41,417)
compared to $(62,735) for the three months ended August 31, 2005. These charges
consisted of general and administrative expenses which declined from the prior
year period because costs associated with bringing the Company current with
certain administrative requirements, including SEC filings, were greater during
the prior year time period.
19
AMERICAN ENVIRONMENTAL, INC.
(f/k/a MyZipSoft, Inc.)
A Development Stage Enterprise
Interest expense of $347 was recorded in the current quarter compared to $0 of
interest expense incurred during the corresponding period of the prior year.
As a result of the incurrence of the administrative expenses and interest
expense, the net loss for the three months ended August 31, 2006 was $(41,552)
versus a net loss of $(62,695) recorded in the three months ended August 31,
2005.
Liquidity and Capital Resources
- ---------------------------------------
Currently there is no trading market for the Company's common stock, and there
can be no assurance that any trading market will ever develop or, if such a
market does develop, that it will continue. As noted above, upon effectiveness
of a Registration Statement, the Company intends to apply to have its common
stock listed for trading on the American Stock Exchange. If, for any reason, the
Company does not meet the qualifications for listing on a major stock exchange,
the Company's securities may be traded in the over-the-counter ("OTC") market.
The Company continues to be reliant on the private sale of its restricted common
stock plus loans from stockholders and other related parties in order to fund
its operations.
ITEM 3. CONTROLS AND PROCEDURES
EVALUATION OF THE COMPANY'S DISCLOSURE CONTROLS AND INTERNAL CONTROLS:
Within the 90 days prior to the date of this Quarterly Report on Form 10-QSB,
the Company evaluated the effectiveness of the design and operation of its
'disclosure controls and procedures' ("Disclosure Controls"). This
'evaluation' ("Controls Evaluation") was done under the supervision and with the
participation of management, including the Chief Executive Officer/Chairman
("CEO") and Chief Financial Officer ("CFO"). As a result of
this review, the Company adopted guidelines concerning disclosure controls and
the establishment of a disclosure control committee made up of senior
management.
LIMITATIONS ON THE EFFECTIVENESS OF CONTROLS:
The Company's management, including the CEO/CHAIRMAN and CFO, does not expect
that its Disclosure Controls or its 'internal controls and procedures for
financial reporting' ("Internal Controls") will prevent all error and all fraud.
Control system, no matter how well conceived and managed, can provide only
reasonable assurance that the objectives of the control system are met. The
design of a control system must reflect the fact that there are resource
constraints, and the benefits of controls must be considered relative to their
costs. Because of the inherent limitations in all control systems, no evaluation
of controls can provide absolute assurance that all control issues
and instances of fraud, if any, within the Company have been detected. These
inherent limitations include the realities that judgments in decision-making
can be faulty, and that breakdowns can occur because of simple error or mistake.
20
AMERICAN ENVIRONMENTAL, INC.
(f/k/a MyZipSoft, Inc.)
A Development Stage Enterprise
Additionally, controls can be circumvented by the individual acts of some
persons, by collusion of two or more people, or by management override of the
control. The design of any system of controls also is based in part upon certain
assumptions about the likelihood of future events, and there can be no assurance
that any design will succeed in achieving its stated goals under all potential
future conditions; over time, control may become inadequate because of changes
in conditions, or the degree of compliance with the policies or procedures may
deteriorate. Because of the inherent limitations in a cost-effective control
system, misstatements due to error or fraud may occur and not be detected.
CONCLUSIONS:
Based upon the Controls Evaluation, the CEO/Chairman and CFO have concluded
that, subject to the limitations noted above, the Disclosure Controls are
effective to timely alert management to material information relating to the
Company during the period when its periodic reports are being prepared.
In accordance with SEC requirements, the CEO/Chairman and CFO note that, since
the date of the Controls Evaluation to the date of this Quarterly Report, there
have been no significant changes in Internal Controls or in other factors that
could significantly affect Internal Controls, including any corrective actions
with regard to significant deficiencies and material weaknesses.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
The Company is not a party to any legal proceedings.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None
ITEM 5. SUBSEQUENT EVENTS.
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits:
21
AMERICAN ENVIRONMENTAL, INC.
(f/k/a MyZipSoft, Inc.)
A Development Stage Enterprise
EXHIBIT
NUMBER DESCRIPTION
- -------- -------------------
31.1 Certification required under Section 302 of
the Sarbanes-Oxley Act of 2002 by the CEO
31.2 Certification required under Section 302 of
the Sarbanes-Oxley Act 0f 2002 by the CFO
32 Section 1350 Certification
99.1 June 6, 2005 Court Orders issued by Judge Friedman approving
the employment of Kluger, Peretz, Kaplan & Berlin, P.L as
eCom's bankruptcy legal counsel and the approval of Barney A.
Richmond as CEO of eCom.
99.2 June 14, 2005 Interim Order for Post Petition $100,000 eCom Debtor-
In-Possession financing provided by American Capital Holdings.
99.3 July 18, 2005 letter from the Securities and Exchange Commission
asking A Super Deal to provide legal analysis for their "spin-off"
share issuance.
99.4 July 20, 2005, Motion for permission to perfect notice to
all interested parties via the eCom website, and the July 25, 2005
Court Order this Motion To Limit Notice and the use of electronic
service to notice shareholders
99.5 August 15, 2005 legal analysis from Barney A. Richmond filed in
response to the SEC July 18, 2005 letter.
99.6 Transcript of March 12, 2007 Confirmation Hearing of debtor eCom
eCom.com, Inc.
(b) Reports on Form 8-K:
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunder duly authorized.
March 23, 2007 By: /s/ Barney A. Richmond
Barney A. Richmond,
Chief Executive Officer
March 23, 2007 By: /s/ Richard C. Turner
Richard C. Turner,
Chief Financial Officer
22
SIGNATURES AND CERTIFICATIONS
EXHIBIT 31.1
CERTIFICATION REQUIRED UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Barney A. Richmond, certify that:
1. I have reviewed this quarterly report on Form 10-QSB of AMERICAN
ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.).
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit 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 report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as
of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant is made known to us by others within the
company, particularly during the period in which this report is prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this report
(the "Evaluation Date"); and
c) presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures based on our evaluation as of the Evaluation
Date;
5. The registrant's other certifying officer and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls.
6. The registrant's other certifying officer and I have indicated in this report
whether or not there were significant changes in internal controls or in other
factors that could significantly affect internal controls subsequent to the date
of our most recent evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
Date: March 23, 2007
/s/ Barney A. Richmond
Barney A. Richmond
President 23
EXHIBIT 31.2
CERTIFICATION REQUIRED UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Richard C. Turner, certify that:
1. I have reviewed this quarterly report on Form 10-QSB of AMERICAN
ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.).
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit 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 report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as
of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant is made known to us by others within the
company, particularly during the period in which this report is prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this report
(the "Evaluation Date"); and
c) presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures based on our evaluation as of the Evaluation
Date;
5. The registrant's other certifying officer and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls.
6. The registrant's other certifying officer and I have indicated in this report
whether or not there were significant changes in internal controls or in other
factors that could significantly affect internal controls subsequent to the date
of our most recent evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
Date: March 23, 2007
/s/ Richard C. Turner
Richard C. Turner
Chief Financial Officer 24
EXHIBIT 32
CERTIFICATIONS OF CEO AND CFO PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT
CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
(18 U.S.C. SECTION 1350)
In connection with the Registration Statement of AMERICAN ENVIRONMENTAL, INC.
(f/k/a MyZipSoft, Inc.), a Florida corporation (the "Company"), on Form 10-QSB
for the period ended August 31, 2006 as filed with the Securities and Exchange
Commission (the "Report"), Barney A. Richmond, President of the Company, and
Richard C. Turner, Chief Financial Officer of the Company, respectively, do each
hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18
U.S.C 1350, that to his knowledge:
(1) The Report fully complies with the requirements of section 13(a) or 15(d)of
the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Company.
/s/ Barney A. Richmond
Barney A. Richmond
President
Date: March 23, 2007
/s/ Richard C. Turner
Richard C. Turner
Chief Financial Officer
Date: March 23, 2007
[A signed original of this written statement required by Section 906 has been
provided to AMERICAN ENVIRONMENTAL, INC. (f/k/a MyZipSoft, Inc.) and will be
retained by AMERICAN ENVIRONMENTAL, INC. and furnished to the Securities and
Exchange Commission or its staff upon request.]
The Securities and Exchange Commission has not approved or disapproved of this
Form 10-QSB nor has it passed upon its accuracy or adequacy.
25