|
ITEM
1.
|
FINANCIAL
STATEMENTS
|
GENERAL
The Company's unaudited financial statements for the three months ended
September 30, 2007 are included with this Form 10-QSB. The unaudited financial
statements have been prepared in accordance with the instructions to Form 10-QSB and,
therefore, do not include all information and footnotes necessary for a complete
presentation of financial position, results of operations, and cash flows in
conformity with generally accepted accounting principles. In the opinion of
management, all adjustments considered necessary for a fair presentation of
the results of operations and financial position have been included and all
such adjustments are of a normal recurring nature. Operating results for the
three months ended September 30, 2007 are not necessarily indicative of the results
that can be expected for the fiscal year ending December 31, 2007.
AMA
NASU
ENVIRONMENT CORPORATION and SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
Assets:
|
|
September 30, 2007 (Unaudited)
|
|
|
December 31, 2006 (Audited)
|
|
|
Cash
|
|
$
|
153,304
|
|
$
|
102,763
|
|
|
Certificate Of Deposit
|
|
|
801,000
|
|
|
1,150,000
|
|
|
Accounts and notes receivables
|
|
|
65,706
|
|
|
66,737
|
|
|
Inventory
|
|
|
6,412
|
|
|
3,373
|
|
|
Advance to vendor
|
|
|
94,000
|
|
|
94,000
|
|
|
Short-term loans receivable
|
|
|
259,036
|
|
|
293,152
|
|
|
Accrued interest receivables
|
|
|
13,607
|
|
|
13,236
|
|
|
Employee loans receivables
|
|
|
50,205
|
|
|
-
|
|
|
Total
current assets
|
|
|
1,443,270
|
|
|
1,723,261
|
|
|
|
|
|
|
|
|
|
|
|
Fixed
Assets:
|
|
|
|
|
|
|
|
|
Machinery and
equipment
|
|
|
344,379
|
|
|
342,216
|
|
|
Less,
accumulated depreciation
|
|
|
178,931
|
|
|
100,276
|
|
|
Net
fixed assets
|
|
|
165,448
|
|
|
241,940
|
|
|
|
|
|
|
|
|
|
|
|
Other
Assets:
|
|
|
|
|
|
|
|
|
Investments
|
|
|
227,247
|
|
|
277,763
|
|
|
Prepaid expenses
|
|
|
62,551
|
|
|
76,448
|
|
|
Security deposits
|
|
|
143,595
|
|
|
143,595
|
|
|
Miscellaneous receivables
|
|
|
-
|
|
|
893
|
|
|
Long-term loans receivable
|
|
|
15,229
|
|
|
31,483
|
|
|
Total
other assets
|
|
|
448,622
|
|
|
530,182
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
2,057,340
|
|
$
|
2,495,383
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts Payable
|
|
$
|
52,629
|
|
$
|
22,359
|
|
|
Accrued expenses
|
|
|
51,472
|
|
|
13,450
|
|
|
Payroll and other taxes payable
|
|
|
27,459
|
|
|
18,082
|
|
|
Deposits
|
|
|
7,762
|
|
|
-
|
|
|
Stockholders advances
|
|
|
87,022
|
|
|
958
|
|
|
Advance from affilate
|
|
|
10,000
|
|
|
-
|
|
|
Total
current liabilities
|
|
|
236,344
|
|
|
54,849
|
|
|
|
|
|
|
|
|
|
|
|
Minority Interest
|
|
|
381,077
|
|
|
426,014
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
|
|
Common
stock: authorized 100,000,000 shares
|
|
|
|
|
|
|
|
|
of
$.001 par value; 44,000,816 issued and
|
|
|
|
|
|
|
|
|
outstanding
|
|
|
44,001
|
|
|
44,001
|
|
|
|
|
|
|
|
|
|
|
|
Additional paid-in capital
|
|
|
4,257,039
|
|
|
4,257,039
|
|
|
Retained deficit
|
|
|
(2,914,883
|
)
|
|
(2,301,821
|
)
|
|
Accumulated other comprehensive income
|
|
|
53,762
|
|
|
15,301
|
|
|
|
|
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
|
1,439,919
|
|
|
2,014,520
|
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities and Stockholders' Equity
|
|
$
|
2,057,340
|
|
$
|
2,495,383
|
|
These
statements should be read in conjunction with the year-end financial
statements.
AM
ANASU ENVIRONMENT CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS
OF OPERATIONS
(Unaudited)
|
|
|
For The Nine Month Periods Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
574, 687
|
|
$
|
318,341
|
|
Cost of Goods sold
|
|
|
434, 828
|
|
|
239,071
|
|
Gross Profit
|
|
|
139,859
|
|
|
79,270
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
532,894
|
|
|
576,332
|
|
Litigation settlement
|
|
|
220,000
|
|
|
-
|
|
Operating
Loss
|
|
|
(613,035
|
)
|
|
(497,062)
|
|
|
|
|
|
|
|
|
|
Other
Income (expense)
|
|
|
|
|
|
|
|
Interest Income
|
|
|
49,526
|
|
|
34,625
|
|
Equity in losses of investee companies
|
|
|
(97,675)
|
|
|
(245,230)
|
|
Other income
|
|
|
3,714
|
|
|
5,986
|
|
Interest expense
|
|
|
(529)
|
|
|
(125)
|
|
Minority interest in loss of subsidiary
|
|
|
42,937
|
|
|
-
|
|
Net Loss
|
|
|
(
613,062)
|
|
|
(
701,806)
|
|
|
|
|
|
|
|
|
|
Other Comprehensive Income (loss):
|
|
|
|
|
|
|
|
Gain (loss) on foreign currency conversion
|
|
|
38,456
|
|
|
6,412
|
|
|
|
|
|
|
|
|
|
Total Comprehensive Loss
|
|
$
|
(574,606)
|
|
$
|
(695,394)
|
|
Loss Per Share - basic and diluted
|
|
$
|
(.01)
|
|
$
|
(.01)
|
|
Weighted average number of shares outstanding
|
|
|
44,000,816
|
|
|
44,000,816
|
|
|
|
|
|
|
|
|
These
statements should be read in conjunction with the year-end financial
statements.
AM
ANASU ENVIRONMENT CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS
OF OPERATIONS AND DEFICIT
(Unaudited)
|
|
|
For The Three Month Periods Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
134,850
|
|
$
|
70,331
|
|
Cost of Goods sold
|
|
|
98,205
|
|
|
70,457
|
|
Gross Profit
|
|
|
36,645
|
|
|
(126)
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
|
162,869
|
|
|
288,556
|
|
Litigation Settlement
|
|
|
220,000
|
|
|
-
|
|
Operating
Loss
|
|
|
(346,224
|
)
|
|
(288,682)
|
|
|
|
|
|
|
|
|
|
Other
Income (expense)
|
|
|
|
|
|
|
|
Interest Income
|
|
|
12,022
|
|
|
12,434
|
|
Equity in losses of investee companies
|
|
|
(40,586)
|
|
|
(45,666)
|
|
Other income
|
|
|
(940)
|
|
|
3,764
|
|
|
|
|
|
|
|
|
|
Minority interest in loss of subsidiary
|
|
|
2,904
|
|
|
-
|
|
Net Loss
|
|
|
(
372,824)
|
|
|
(
318,150)
|
|
|
|
|
|
|
|
|
|
Other Comprehensive Income (loss):
|
|
|
|
|
|
|
|
Gain (loss) on foreign currency conversion
|
|
|
35,756
|
|
|
9,819
|
|
|
|
|
|
|
|
|
|
Total Comprehensive Loss
|
|
$
|
(337,068)
|
|
$
|
(308,331)
|
|
Loss Per Share - basic and diluted
|
|
$
|
-
|
|
$
|
(.01)
|
|
Weighted average number of shares outstanding
|
|
|
44,000,816
|
|
|
44,000,816
|
|
|
|
|
|
|
|
|
These
statements should be read in conjunction with the year-end financial
statements.
AM
ANASU ENVIRONMENT CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS
OF CASH FLOWS
(Unaudited)
|
|
|
For The Nine Month Periods Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH
FLOWS FROM OPERATIONS:
|
|
|
|
|
|
Net
loss
|
|
$
|
(613,062
|
)
|
$
|
(701,806)
|
|
Charges
not requiring the outlay of cash:
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
|
78,655
|
|
|
18,754
|
Equity in results of investee companies
|
|
|
97,675
|
|
|
245,230
|
|
Minority interest in subsidiary loss
|
|
|
(44,937)
|
|
|
-
|
|
|
|
|
|
|
|
|
Changes
in assets and liabilities:
|
|
|
|
|
|
|
|
Decrease (increase) in notes and accounts receivable
|
|
|
1,031
|
|
|
45,846
|
|
Decrease (increase) in inventory
|
|
|
(3,039)
|
|
|
15,779
|
|
Increases in accrued expenses
|
|
|
38,022
|
|
|
36,667
|
|
Increase in accrued interest receivable
|
|
|
(371)
|
|
|
(3,070)
|
|
Increase in advances to employees
|
|
|
(50,205)
|
|
|
(100,964)
|
|
Increase (decrease) in accounts payable
|
|
|
30,270
|
|
|
2,112
|
|
Increase in advance to shareholder
|
|
|
-
|
|
|
43,277
|
|
Increase in payroll and other taxes payable
|
|
|
9,377
|
|
|
55,621
|
|
Decrease in prepaid expenses
|
|
|
13,897
|
|
|
-
|
|
Decrease (increase) in other receivables
|
|
|
893
|
|
|
(4,027)
|
|
Increase (decrease) in deposit
|
|
|
6,803
|
|
|
(4,238)
|
|
Net
Cash Consumed By
|
|
|
|
|
|
|
|
Operating
Activities
|
|
|
(434,990
|
)
|
|
(
350,819)
|
|
CASH
FLOWS FROM INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
Investments in machinery and equipment
|
|
|
(2,163)
|
|
|
-
|
|
Increase in certificate of deposit
|
|
|
-
|
|
|
(150,000)
|
|
Decdrease in certifcate of deposit
|
|
|
349,000
|
|
|
-
|
|
Increase in long term loans
|
|
|
-
|
|
|
(243,897)
|
|
Reduction of long term loans
|
|
|
16,254
|
|
|
178,497
|
|
Advance to affiliate
|
|
|
(3,043)
|
|
|
(100,000)
|
|
Net
Cash Provided (Consumed)
|
|
|
|
|
|
|
|
By
Investing Activities
|
|
|
360,048
|
|
|
(315,400)
|
|
|
|
|
|
|
|
|
|
CASH
FLOWS FROM FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
Shareholders Advances
|
|
|
87,022
|
|
|
-
|
|
Minority Investment in subsidiary
|
|
|
-
|
|
|
426,014
|
|
Repayment of short term loan
|
|
|
-
|
|
|
(21,210)
|
|
|
|
|
|
|
|
|
|
Net
Cash Provided By
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
87,022
|
|
|
404,804
|
|
|
|
|
|
|
|
|
|
Exchange Rate Effect on cash
|
|
|
38,461
|
|
|
(6,412)
|
|
|
|
|
|
|
|
|
|
Net
Change in Cash Balances
|
|
|
50,541
|
|
|
(255,003)
|
|
Cash
balance, beginning of period
|
|
|
102,763
|
|
|
523,318
|
|
Cash
balance, end of period
|
|
$
|
153,304
|
|
$
|
268,315
|
These
statements should be read in conjunction with the year-end financial
statements.
AMANA
SU
ENVIRONMENT CORPORATION and SUBSIDIARIES
CONSOLIDATED NOTES
TO FINANCIAL STATEMENTS
September
30, 2007
(Unaudited)
The unaudited interim consolidated financial statements of Amanasu Environment Corporation and Subsidiaries ("the Company"), as of September 30, 2007 and for the three and nine month periods ended September 30, 2007 and 2006, have been prepared in accordance with accounting principles generally accepted in the United State of America. In the opinion of management, such information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of such periods. The results of operations of the quarter and nine month periods ended September 30, 2007 are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2007.
Certain information and disclosures normally included in the notes to financial statements have been condensed or omitted as permitted by the rules and regulations of the Securities and Exchange Commission, although the Company believes the disclosure is adequate to make the information presented not misleading. The accompanying unaudited financial statements should be read in conjunction with the financial statements of the Company included in the annual report on Form 10-KSB for the year ended December 31, 2006.
2. SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
There was no cash paid for interest or income taxes during the three month and nine month periods ended September 30, 2007 and 2006. There was no non-cash financing or investing activity during these periods.
3. SETTLEMENT
On February 10, 2006, a law suit was commenced in which the Company, an affiliated company, and an officer of the Company were named as defendants. The lawsuit was settled on March 27, 2007. Under the terms of the settlement, the Company, its affiliate, and the officer were obligated to pay $260,000 in monthly installments of $10,000 each. Two of these payments were made subsequent to the settlement. The settlement was amended during the third quarter of 2007, and was fully satisfied with additional cash payments of $200,000. All of the funds for settlement were paid by the Company. In addition, the Company paid legal fees connected with this lawsuit which totaled $86,630, of which $16,817 was paid in 2006, and $69,813 was paid in 2007.
|
ITEM
2:
|
MANAGEMENT
DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
Cautionary
Statement
SAFE
HARBOR
This Form 10QSB contains "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E
the Securities Exchange Act of 1934, as amended and such forward-looking
statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. "Forward-looking statements"
describe future expectations, plans, results, or strategies and are generally
preceded by words such as "may," "future," "plan" or "planned," "will" or
"should," "expected," "anticipates," "draft," "eventually" or "projected."
You are cautioned that such statements are subject to a multitude of risks
and uncertainties that could cause future circumstances, events, or results
to differ materially from those projected in the forward-looking statements,
including the risks that actual results may differ materially from those
projected in the forward-looking statements as a result of various factors,
and other risks identified in a companies' annual report on Form 10-KSB and
other filings made by such company with the United States Securities and
Exchange Commission. You should consider these factors in evaluating the
forward-looking statements included herein, and not place undue reliance on
such statements.
The following discussion should be read in conjunction with the Company's
Financial Statements, including the Notes thereto, appearing elsewhere in
this Quarterly Report and in the Annual Report for the year ended December 31, 2007.
COMPANY
OVERVIEW
The Company was organized February 22, 1999.
Its operations to date have been limited to obtaining exclusive licensing rights
for technologies, conducting preliminary marketing efforts, and conducting
product testing.
As of August 4th, 2005, Kogure's six proprietary rights (See "Patents" below)
to the license of the technologies and parts in connection with constructing
the rotary kiln and its title w ere transferred to Amanasu Environment Corporation,
and the amount of $290,000 that the Company previously funded to Kogure for
marketing and promotion purposes replaced in as transfer fee. As a result,
the Company possesses the exclusive worldwide right to the product, and can
receive royalties from the sales of the rotary kiln by other companies including MINMETAL.
The Company business is in developing and marketing technologies
in various environmental industries such as waste management, water purification
, heat and energy production, and will continue to expand into other environmental technology markets.
Initially we began by acquiring the exclusive, worldwide license
rights to a high temperature furnace, a hot water boiler, and ring-tube
desalinization methodology. At present, the Company is not engaged in the
commercial sale of any of these licensed technologies. Our operations to date
have been limited to acquiring different technologies, conducting limited product
marketing, and testing the technologies for commercial sale. For each such
technology, proto-type or demonstrational units have been constructed by each
licensor or inventor. The Company has conducted various
internal tests on these units to determine their commercial viability.
With the result of such testing, the Company believes
that the products are not commercially ready for sale, and that product refinements
are necessary with respect to each of the technologies. In addition, the Company
may seek joint venture or other affiliations with companies competitive in each
respective product market whereby we can capitalize on the existing
infrastructure of such other companies: product design and engineering,
marketing and sales, and warranty and post-warranty service and repair to name a few.
The Company believes that the marketing efforts to sell any of our products
will be limited until such time as we can complete the refinements of its
technologies. The Company can not predict whether it will be successful in
developing commercial products, or establishing affiliations with any operating company.
The Company's current business plan is the result of recent operational results
during the fiscal year of 2007 and may change due to the amount of risk accompanied by the
nature of its business. The Company's business is run through four subsidiary branches, with each respective
branch focused on a particular environmental market: Amanasu Echo Frontier is involved in waste management technologies;
Amanasu Energy, formerly Felice, is involved in solar panel technology;
Amanasu Shinwa, formerly Shinwa Yosetsu, is involved in water purification; and finally as of September 21st 2006
a newly formed Amanasu Water which is involved
in drinking water. All 4 branches are at various ownership levels managed through a 91% controlled holdings
company, Amanasu Holdings established in December 2005.
Amanasu Shinwa.
Amanasu Shinwa, was formerly a subcontractor for the Company. Originally, Shinwa Yosetsu was
to refine and manufacture the Ring-Tube Desalinization technology held by Amanasu Environment; however, with
lack of commercial viability Shinwa Yosetsu was fully acquired by Amanasu Environment under Amanasu Holdings
and Shinwa Yosetsu's existing operations were put into priority. Amanasu Shinwa is primarily involved in
manufacturing water purification plants for use in pools, fitness centres etc, and seawater to fresh water
purification plants. It also continues its previous steel pipe whelding operations, and retains all its previous customers.
Amanasu Water.
Keeping in line with the Company's goal of creating a cleaner and healthier future, a big part of the earth's future is water.
Water is likely the single most important part of our daily lives. Amanasu Water will be involved in the sale of Amanasu Sui-So-Sui, or Amanasu Hydrogen-ion water.
Hydrogen-ion water is a new product and is said to have effective and efficient anti-oxidant properties.
Even when compared with well know anti-oxidants such as Vitamin C, Vitamin E, Co-enzyme Q10,
is much more effective due to Hydrogen-ion water's unique ability to enter into the cell's mitochondria, the cell's power plant.
There it acts as an anti-oxidant, without interfering with the bodies normal oxidation reactions.
PRODUCTS
Amanasu Environment
Amanasu
Furnace
The technology, known as the Amanasu Furnace, is a process that disposes of toxic
and hazardous waste, through a proprietary, high temperature combustion system.
The combustion system is a low cost methodology generating extremely high
temperatures in excess of 2,000 Celsius. Waste matter exposed to the extreme
temperature system is instantly decomposed to a gaseous matter and a magna-like
liquid. The process leaves a 1-2% residue of an inert, carbon substance and
oxygen which is vented out of the system. The process produces no toxins, smoke,
ash, or soot.
The Company believed that the prior pricing structure for its furnaces
was not competitive, and was seeking ways to lower its manufacturing
costs. The Company was attempting
to locate alternate suppliers that were more cost effective than currently identified
ones. At the same time the Company also attempted to re-design certain components of the furnace
so as to reduce the manufacturing cost per component. The aim was to
alter the function of the original furnace, which managed daily waste to one that managed
specific waste (i.e. industrial, and/or medical waste); however, the Company was confronted
with several difficulties and started to reconsider the alteration.
At the same time, the Company was also seeking affiliations with companies competitive in the furnace market in Japan.
Kogure Works, had an established infrastructure, manufacturing more developed furnaces, comparatively lower in cost.
The Company then entered into an agreement with Kogure Works Co sharing its technologies and marketing resources,
while making use of Kogure's manufacturing expertise.
The pricing of the product to be developed was $100,000/t and eventually reducing the price by 20% was ideal.
As discussed above, the Company expected to alter the function of the Amanasu
Furnace in order to specify its market place; however, there has not been
a strong demand for their product due to the cost of manufacturing a unit.
The Company did not reach the successful and
complete refinement and cost reduction as they had planned; therefore,
no further production and investment on this technology has been determined,
and there is no further business relation with Kogure Works Co., Ltd. ("Kogure")
on this project. The Company does not know whether the project will continue into the future;
however, the exclusive rights of manufacturing and sales of the Amanasu Furnace will remain with the Company.
Fire
Bird Boiler
The Fire Bird Boiler technology is a patented process, which incinerates
whole waste tires in a non-polluting manner emitting heat or steam in the
incineration process. The Fire Bird Boiler provides combustion efficiency
and seeks to minimize dioxin generation which is generally a by-product of
imperfect combustion.
The Company believes that the Fire Bird Boiler is an effective dual purpose technology
for incinerating waste tires and generating heat; however, the Company
has recognized that the supply of waste tires in certain markets, including the
United States, has been greatly reduced due to the effect of recent efforts to recycle
waste tires. Thus, the reduction in the available supply of waste tires in these markets
has limited the market potential of the boiler. As a result, the Company has been
confronted with severe marketing difficulties for Fire Bird at present, and will seek
to refine the boiler to accept other forms of waste, such as hazardous waste.
Even though the Company decided to seek refinement to the boiler to accept other
forms of waste, to be flexible in the market,
the Company has determined no further production and/or investment on this
technology. The estimated refinement time was not feasible for the Company, thus
no further business relations will continue with Kogure on this project. The
Company does not know whether the project will continue into the future; however,
the exclusive rights of manufacturing and sales for the Fire Bird Boiler will
still remain with the Company
Ring-tube
Desalinization Equipment
The Ring-Tube technology is used as a filter to purify seawater into drinking
water and also treats sewage and waste water, by removing pollutants and bacteria.
The equipment filters bacteria and other impurities through its fine rings
and comb type filter and reduces the presence of inhibiting scales on the
equipment. The impurities are then destroyed by the high pressure and
temperature in the ring-tube. The Company believes that its technology is
more cost efficient to construct and operate than conventional RO equipment.
Its fresh water recovery rate is 95% compared with the less than 40% for a RO method.
Moreover, water produced from the Company's technology retains a certain
amount of salt and minerals and does not required a pH adjustment. RO filtration
removes all minerals and salt, requiring minerals to be added to improve flavor,
and an adjustment to reduce pH levels. The reject brine resulting from RO
filtration is discharged in the ocean creating higher salt concentrations in
such areas, however, the by-product from the Company's technology is sufficiently
condensed allowing it to be sold as a salt product.
Amanasu Shinwa
Kijimuna Water Purifier
Amanasu Shinwa's Kijimuna is an industrial strength water purifier that uses an automated mineral fortification system
to effectively clean small bodies of water. Kijimuna's unique design allows it to be used with various bodies of water; and
in cases where a body of water has at least 3 meters depth, Kijimuna has no need for
a water pump. The resulting purified water has a mineral content between 50 ppm and 200 ppm, with no
PH balancing required.
With the addition of the ceramic ball placed in the water tanks, the purification efficiency has increased, as well as a 95% reduction in calcium residue on the exterior of the Kijimuna.
Ceramic Ball
During the quarter ended June 30, 2007, Amanasu Shinwa launched a joint sales project with JA (Japan Agriculture) for the ceramic ball. The ceramic ball has 2 functions. It is a water purification tool, used on its own, or in conjunction with other purification systems (the ceramic ball has been applied to the Kijimuna Water Purifier, and also in all developing purifiers, including Ozone type purifiers.). It also can be used in car engines, to boost gas efficiency, as well as clean the engine internally. The ceramic ball is approximately 1.5 cm in diameter, and is used in both commercial and household applications. For example, 1, or 2 ceramic balls placed in a 300 ml water bottle can purify the water in 8 hours, and can be used continously, with no need for replacement.
Amanasu Water
Amanasu Hydrogen-ion Water (Sui-So-Sui)
Amanasu Water's principle product is a soon to be launched drinking water called "Sui-So-Sui",
or Hydrogen-ion water. Amanasu Hydrogen-ion water will be primarily marketed through
fitness clubs, and professional sports arenas, and pachinko parlors across Japan, with future plans to expand its operation
into North America. Processing and packing will be done by utilizing BMD Co,
facilities in Japan.
Hydrogen ion water is said to have anti-oxidant properties that rival those of which have been
scientifically established anti-oxidants. Vitamin C, Vitamin E, and Co-Enzyme Q10 are to name a few.
Hydrogen-ion water, being water, has the ability to pass straight into the cell and into the
mitochondria (the power plant of the cell). There it prevents disease promoting oxidation reactions
, while leaving the 2% of oxidation reactions needed in daily life. Vitamin C and other minerals
are not able to penetrate the cell wall. Vitamin E, and Co-enzyme Q10, are able to enter the cell wall,
however, remain unable to enter the mitochondria.
Hydrogen-ion water has various applications apart from normal consumption. It can
be used as a hair tonic after showering, an eye rinse, and for other daily uses. Amanasu Hydrogen-ion Water
will be sold in 300 ml pouches starting November 2006.
PLAN OF OPERATION
Amanasu Environment.
The Company's main management focus for the fiscal year ending December 31, 2007
will be the activities of Amanasu Water and Amanasu Energy. The Company will utilise it's business network connections
to support sales and marketing activities of both Amanasu Water and Amanasu Energy in Japan. The Company will also
utilise it's business network in order to establish sales and marketing channels in the United States and South East Asia.
For Amanasu Water in Japan, the Company has provided connections to Pachinko, hotel, drug store, beauty salon, and restaurant chains.
On the North American front, the Company is currently gathering information on material availability, and also researching various
sales channels: hospital chains, restaurant chains, hotels, and any companies related to the health and beauty industry
are being compiled.
Amanasu Holdings.
As of December 16th, 2005, the Company established , Amanasu
Holdings Corporation ("Amanasu Holdings"), located at 1-5 Suda-cho, Chiyoda-ku,
Tokyo, as a subsidiary company of Amanasu Environment Corporation with
100 % control. On September 21st 2006 an electronics manufacturer Soae invested 50,000,000 Yen ($500,000)
into Amanasu holdings, thus holding 9% of Amanasu holdings. On the same day Amanasu Holdings
Corporation has begun to implement plans to reorganize its subsidiary companies in
an effort to concentrate the entire organization on environmental technologies/methodologies.
As explained briefly above in the Company overview, Amanasu Holdings subsidiary companies
will focus on four main markets within the environmental technology industry: Energy production,
waste management, water purification, and drinking water. Amanasu Echo Frontier will continue its
operations with its waste incineration technologies (Rotary Kiln, and Swing Melter). Amanasu Shinwa will also
continue its operations in water purification plants for pools, and fitness clubs, as well
as its sea water purification plants operations. Felice, originally running beauty salons under
a membership system, will change its business plan to become Amanasu Energy Development. Amanasu Energy Development
will be involved in the sale and marketing Sanyo HIT solar panels in Japan. Newly formed
Amanasu Water will be involved in sales of Amanasu Hydrogen-ion water, a drinking water beginning its sales in Japan on November 2006 with future plans to expand into
North America, and South East Asia. The remaining subsidiary companies BJSS, Petstyle,
and Japan Amanasu Project Support were not able to be accommodated within the newly organized
plans, thus will be open for sale to any organization that have interest in its respective industry.
Amanasu Holdings
Amanasu Echo Frontier.
Amanasu Holdings and the former employees of Kogure jointly
established Amanasu Echo Frontier Corporation
("Amanasu Echo Frontier"), with a capital of $240,000 (28,000,000 Yen)
of which Amanasu Holdings invested $103,000 (12,000,000 Yen) in December,
2005, with 10 former technicians of Kogure. Amanasu Echo Frontier
mainly produces incinerator, furnace, and medical waste treatment plants
using the 6 proprietary rights purchased from Kogure as stated above at a
location of 1-24-8 Iwagami-cho, Maebashi, Gunma, Japan.
Amanasu Echo Frontier's business plans for the remaining fiscal year ending December 31, 2007 are spilt into 3 areas:
China, Japan, Development of Industrial Waste Treatment Facilities. In terms of selling new units, Amanasu Eco Frontier
will focus on the Chinese market: 2 units in 2007, 3 units the following year, and 5 units per year after that.
Marketing in China has been entrusted to Mr. On, Director and Shareholder of Amanasu Eco Frontier, who is
key in Amanasu Eco Frontier's plans.
Amanasu Shinwa.
Amanasu Holdings invested $84,228 (10,000,000 Yen) on December 16th, 2005 into Amanasu Shinwa for the follow items.
(i) The Production of a model water purification plant managed by Amanasu Shinwa.
(ii) 5 Water purification units ($85,000 (10,000,000 Yen) per unit) for pools at sports clubs, which will be produced and
distributed in Japan for the next 12 months
Amanasu Shinwa has also started developing a new plant using ozone sterilization technologies
, and are expecting an increase of sales by the new development.
The new plant will be used for swimming pools, public bathing houses, kitchens and the wide
range of other market places are being prospected.
During the quarter ended June 30, 2007, Amanasu Shinwa launched sales of the ceramic ball with JA (Japan Agriculture). The ceramic ball has a wide variety of applications in water purifications, as well as increasing gas mileage in cars. The ceramic ball has also been incorporated into all of Shinwa's water purification technologies. Each ball is to be sold at a retail price of between 1250 to 1800 Yen depending on volume.
The target sales for 2007 will be 300,000,000 Yen.
Amanasu Energy (formerly Felice).
Amanasu Holdings invested 10,000,000 Yen and loaned 5,000,000 Yen into Felice Ltd;,
located at 3-41 Akebono-chou Senju
Adachi-ku Tokyo, on December 16th ,2005.
Felice ran beauty salons on a membership system; however, operational results
were unsatisfactory, and along with the reorganization of Amanasu Holdings (see page 11 for details),
Amanasu Environment and Felice decided to change Felice's business entirely. Felice will direct its focus
on the solar panels industry under the new name Amanasu Energy. Amanasu Energy will begin its
operations with promoting the sales of Sanyo's HIT solar panels in Japan. The sale agreement with Sanyo
is a commission base of 150,000 Yen/unit for sales under 20 units, and 200,000 Yen/unit for sales
of 20 units and above. 50,000 Yen/unit of each sale will be transferred into Amanasu Holdings.
Amanasu Energy's 2 year sales target is 100 units/month and is planning to establish 6 offices in the Tokyo area.
The first Amanasu Energy office was established in Saitama-Ken Saitama-shi Omiya-ku Sakuragi-cho 4-80-1 AS Building 3F.
During the quarter ended June 30, 2007, Amanasu Energy formed a sales agreement with Kyocera in order to increase its market scope. Even though Sanyo's HIT product line has an industry leading power conversion efficiency, the Kyocera Samurai and EconoRoots systems are more economical. Thus, with the Kyocera product lines, Amanasu Energy can reach customers who are looking for more economical products in exchange for more roof space.
Amanasu Water.
As of September 21, 2006 Amanasu Holdings invested 50,000,000 Yen ($500,000) establishing
Amanasu Water, which will be involved in the sale and marketing of "Amanasu Sui-So-Sui" or Amanasu Hydrogen-ion water.
Amanasu water will subcontract BMD Co's processing and packing facilities and will begin distribution
of Amanasu Hydrogen-ion water through fitness clubs and professional sports arenas across Japan
launching on November 2006. Amanasu Hydrogen-ion water will be sold in 300 ml pouches, and 15 yen from each sale will be transferred
to Amanasu Holdings. From the 15 yen transferred 5 yen will be transferred to Amanasu Environment.
Amanasu Water is currently negotiating distribution contracts with Maruhan Corp., Meihou Group, Yuko Corp.,
Yume Corporation, Okuwa Corp, Kaguchi Yakuhin, Donki Houte and others. A distributing contract with 7-11 on the
national level is also being negotiated.
During the quarter ended June 30, 2007 Amanasu water negotiated with several Pachinko Parlor groups, and found out that there was not enough space for the product in the stores, and has decided to make special 150 ml pouches instead of the 300 ml for these stores. 7-11 has expressed great interest in the hydrogen water product, however, requires more data. The Hydrogen water concept is also very new in Japan, thus Amanasu will be providing information in hydrogen water development to 7-11 for a 6 month period in order to solidify 7-11's confidence in the product.
BJSS.
Amanasu Holdings invested 11,000,000 Yen into BJSS Ltd; located at 1-5 Suda-Chou
Chitoda-ku Tokyo on December 16th 2005 and made an additional investment of
9,000,000 Yen on January 26th 2006. This is a temporary employment agency.
with offices in Bangladesh and Japan. BJSS sales are increasing and
showing the highest sales record of 100,000,000 Yen by the end of March in 2006.
Despite increasing sales, BJSS was still not able to self sustain, and with reorganization plans
no further investment will be made into BJSS and Amanasu Environment will make BJSS available
to any organization whom can utilize its services.
During the quarter ended June 30, 2007, BJSS sold a divsion of its employment agency in which Amanasu Holdings received 3,000,000 Yen in compensation. BJSS and Amanasu Holdings will continue its efforts to sell the business to another entity completely.
Petstyle.
Amanasu Holdings invested 10,000,000 Yen into Petstyle Ltd;, which runs a pet modeling
business, located at #406, Mansion Kyassuru,13-8 Daikanyamacho, Shibuya-ku Tokyo,
on January 11th 2006. The company aimed to establish its business as a pioneer of the total
management for the pets in Japan; however, Pestyle was still not able to self sustain, and with reorganization plans
no further investment will be made into Petstyle and Amanasu Environment will make BJSS available
to any organization whom can utilize its services.
During the quarter ended June 30, 2007, Petstyle launched a petfood delivery service. This service will give customers an opportunity to purchase petfood through by phone and have it delivered to their door at the same price as buying from a retail outlet. Petstyle has issued 2000 new catalogues and a website to start this project. Catalogues are issued through newspaper delivery and only houses with pets are targeted. Customers who purchase 3000 Yen or more in Petfood receive delivery at no charge, or charged 315 Yen with purchases under 3000 Yen. The target sales for the remainder of 2007 with this project is 4,800,000 Yen
Japan Amanasu Project Support.
Amanasu Holdings invested 5,000,000 Yen and loaned 5,000,000 Yen to Japan Amanasu Project
Support Ltd;, located at 2-2-5 Nishikanda Chiyoda-ku Tokyo, on January 26th 2006. This company was
established to manage marketing for the incinerator (Amanasu Eco Frontier) and other Amanasu Holdings' products.
It was also planning to produce a new bathing method,
using rocks that have mineral elements, which radiate far infrared rays via heat. The heat then spreads out through
heated rocks in a closed room similar to the sauna concept; however, due to unsatisfactory operational results and
the reorganization of Amanasu Holdings, Japan Amanasu Project Support can no longer be accommodated for in the
new business plan and will be made available for sale to any organization whom can utilize its services.
In order to reduce expenses, Project Support has put a temporary stop to its operations, for the 3rd quarter ending September 31, 2007.
“Patents”
|
1.
|
Rotary
kiln (Patent number 3564012, as of July 2
nd
,
2005); 2. Rotary kiln-Taiwan (Patent number 131102, as of August
21
st
,
2001); 3. Gas lark (petition number 2000-358861, patent pending);
4. Ash
melting furnace and incinerating system (petition number 2002-325560,
patent pending); 5. The interior wall of the kiln (petition number
2004-208198, patent pending); and 6. The method of cooling down the
kiln
(petition number 2004-208199, patent pending)
|
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
This Quarterly Report on Form 10-QSB contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical fact, including statements
regarding industry prospects and future results of operations or financial
position, made in this Quarterly Report on Form 10-QSB are forward looking.
We use words such as "anticipate", "believe", "expect", "intend", "estimate",
(and the negative of any of these terms), "future" and similar expressions
to help identify forward-looking statements. These forward-looking statements are subject
to business and economic risk and reflect management's current expectations,
and involve subjects that are inherently uncertain and difficult to predict.
Our actual results could differ materially. We will not necessarily update
information if any forward-looking statement later turns out to be inaccurate.
Three months ended September 30, 2007
The Company's sales for the three months ended September
30, 2007 were $134,850 compared to $70,331 for the same period in 2006.
The increase in sales were due principally to the sales of Hydrogen and Oxygen water through Amanasu Water and increase sales of Amanasu Energy.
Interest income for the three months ended
September
30, 2007 was $12,022 compared to $12,434
for the same period in 2006. This slight decrease is primarily due to the fluctuating amount of funds in Amanasu Environment's checking account, as well as a decrease in the total amount in CDs.
Minority interest in loss of subsidiary for the three months ended
September
30, 2007 were $2,904
compared to nil for the same period in 2006. The increase was due to the presence of a minority interest Soae from September 21, 2006.
Gain on foreign currency conversion for the three months ended
September
30, 2007
was $35,756 as compared to $9,819 for the same period in 2006. The increase was due to fluctuating currency rates.
Operating expenses for the three months period ended
September
30, 2007 was $162,869
Cost of goods sold for the three months period ended
September
30, 2007 was $98,205
compared to $70,457 for the same period of 2006. The increase was due principally
to the presence of Amanasu water, beginning September 21, 2006.
Nine months ended September 30, 2007
The Company's sales for the nine months ended September
30, 2007 were $574,687 compared to $318,341 for the same period in 2006.
The increase in sales were due principally to the sales of Hydrogen and Oxygen water through Amanasu Water and increase sales of Amanasu Energy.
Interest income for the nine months ended
September
30, 2007 was $?49,526 compared to $34,625
for the same period in 2006. The increase was due to fluctuating interest rates.
Gain on foreign currency conversion for the nine months ended
September
30, 2007
was $38,456 as compared to a loss of $6,412 for the same period in 2006. The increase was due to fluctuating currency rates.
Total expenses for the nine months period ended
September
30, 2007 was $532,894
compared to $576,332 for the same period of 2006. The decrease is due to a reduced amount of funds put towards Amanasu Water's establishment.
Cost of goods sold for the nine months period ended
September
30, 2007 was $434,828
compared to $239,071 for the same period of 2006. The increase is primarily due to increased activity in Amanasu Energy's solar panel sales efforts.
LIQUIDITY
AND CAPITAL RESOURCES
In the nine months ended September 30, 2007 cash used in operating activities was
$434,990 compared to $350,819 for the same period in 2006. The increase is due primarily to increased activity in Amanasu Energy and Amanasu Water.
Total current assets as of September 30, 2007 was $2,057,340 compared to
$2,495,383 as of December 31, 2006. This decrease
is due principly to funds used to cover losses.
Other than the provision of alternating business planning costs discussed above under Plan of operation,
the Company estimates that its operating overhead, which includes general and
administrative charges, will be approximately $1,120,000 for the next 12 months.
This amount is comprised of the following estimated costs; $375,000 in annual
salaries for office personnel and consultants, $375,000 for rent, $150,000 for
professional fees and $220,000 for miscellaneous expenses.
The Company believes that the amount of liquidity and capital resources will
be sufficient for the operation of the Company for the next 12 months.
The Company has sufficient cash on hand to support its overhead for the next
12 months but no material commitments for capital at this time other than as
described above. The Company and/or Amanasu Holdings will need to issue and sell
shares to gain capital for operations.
OFF-BALANCE
SHEET ARRANGEMENTS
The
Company has no off-balance sheet arrangements.
|
Item
3:
|
EFFECTIVENESS
OF THE REGISTRANT’S DISCLOSURE CONTROLS AND
PROCEDURES
|
EVALUATION
OF DISCLOSURE CONTROLS AND PROCEDURES
The Company carried out an evaluation of the effectiveness of the Company's
disclosure controls and procedures (as defined by Rule 13a-15(e) under the
Securities Exchange Act of 1934) under the supervision and with the participation
of the Company's Chief Executive Officer and Chief Financial Officer as of a
date within 90 days of the filings date of Form 10QSB. Based on and as of
the date of such evaluation, the aforementioned officers have concluded
that the Company's disclosure controls and procedures have functioned
effectively so as to provide information necessary whether:
(i) this quarterly report on Form 10 QSB contains any untrue
statement of a material fact or omits 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 quarterly report on Form
10 QSB, and(ii) the financial statements, and other financial
information included in this quarterly report on Form 10 QSB,
fairly present in all material respects the financial condition,
results of operations and cash flows of the Company as of, and
for, the periods presented in this quarterly report on Form 10 QSB.
CHANGES
IN INTERNAL CONTROLS
There
have been no significant changes in the Company's internal controls or in other
factors since the date of the Chief Executive Officer's, Chief Financial
Officer's and Chief Accounting Officer’s evaluation that could significantly
affect any internal control, including any corrective actions with regards
to
significant deficiencies and material weaknesses.
PART2-OT
HER
INFORMATION
|
Item
1.
|
LEGAL
PROCEEDINGS
|
On February 10, 2006, a law suit was commenced in which the Company, an affiliated company,
and an officer of the Company were named as defendants. During the course of that law suit,
$652,409 of Company funds was frozen by court order. The lawsuit was subsequently settled on
March 27, 2007.
|
Item
2.
|
CHANGES
IN SECURITEIES
|
None
|
Item
3.
|
DEFAULTS
UPON SENIOR SECURITEIS
|
None
|
Item
4.
|
SUBMISSION
OF MATTERS TO A VOTE OF
SECURITYHOLDERS
|
None
|
Item
5.
|
OTHER
INFORMATION
|
None
|
(a).
|
Furnish
the Exhibits required by Item 601 of Regulation
S-B.
|
Exhibit
31 - Certification Pursuant To Section 302 Of The
Sarbanes-Oxley Act Of 2002.
Exhibit
32 - Certification Pursuant To Section 906 Of The
Sarbanes-Oxley Act Of 2002.
None
SIGN
ATURES
In
accordance with the requirements of the Exchange Act, the registrant caused
this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.
AMANASU
ENVIRONMENT CORPORATION
Date:
November 27, 2007
|
/s/
Atsushi Maki
|
|
|
|
|
|
Atsushi
Maki
|
|
|
Chief
Executive Officer
|
|
|
Chief
Financial Officer
|
|
|
Chief
Accounting Officer
|
|
15
Amanasu Environment (CE) (USOTC:AMSU)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Amanasu Environment (CE) (USOTC:AMSU)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024
