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EX-32 - EXHIBIT 32 - AMANASU ENVIRONMENT CORPaeex32q.htm
EX-31 - EXHIBIT 31 - AMANASU ENVIRONMENT CORPaeex31q.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the period ended September 30, 2009

[     ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to ________________

Commission File Number: 000-32905

AMANASU ENVIRONMENT CORPRATION

(Exact name of registrant as specified in its charter)

Nevada   98-0347883
(State of other jurisdiction of incorporation or organization)   (I.R.S. Eployer Identification No.)

115 East 57th Street, 11th Floor New York, NY 10022

(Address of principal executive offices)

646-274-1274

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (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 X   No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting copany" in Rule 12b-2 of the Exchange Act.

Large accelerated filer     Accelerated filer  
Non-accelerated filer   (Do not check if a smaller reporting company) Smaller reporting company X

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes     No X

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all docments and reports required to be filed by sections 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Yes     No  

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practiable date: 44,000,816 as of November 23, 2009.


AMANASU ENVIRONMENT CORPORATION
ANNUAL REPORT ON FORM 10-Q
FOR THE THREE MONTHS ENDED September 30, 2009
TABLE OF CONTENTS

Reference Section Name Page
PART I
Item 1. Financial Statements 1
Item 2. Management's Discussion and Analysis of Financial Conditions and Results of Operations 7
Item 3. Quantitative and Qualitative Disclosures About Market Risk 10
Item 4. Controls and Procedures 10
Item 4T. Controls and Procedures 11
PART II
Item 1. Legal Proceedings 11
Item 1A. Risk Factors 11
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 11
Item 3. Default Upon Senior Securities 11
Item 4. Submission Of Matters To A Vote Of Security Holders 11
Item 5. Other Information 11
Item 6. Exhibits 11
Signatures Signatures 12

Part I

Item 1. Financial Statements

The Company's unaudited financial statements for the three months ended September 30, 2009 are included with this Form 10-Q. The unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q 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 U.S. 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 month period ended September 30, 2009 are not necessarily indicative of the results that can be expected for the fiscal year ending December 31, 2009.

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AMANASU ENVIRONMENT CORPORATION and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

Assets September 30, 2009 (Unaudited) December 31, 2008 (Audited)
Current Assets:    
Cash $ 566 $ 7,583
Certificates of Deposit 611,000 696,000
Total Current Assets 611,566 703,583
 
Fixed Assets:
Automotive and Equipment 25,859 25,859
Less, Accumulated Depreciation 21,116 19,785
Net Fixed Assets 4,743 6,074
 
Other Assets:
Investments 2,124 92,604
Miscellaneous Receivables 181,920 88.724
Total Other Assets 184,044 181.328
 
Total Assets $ 800,353 $ 890,985
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Current Liabilities:
Short Term Loans $ 111 $ 24,341
Accounts Payable 38,757 45,762
Accrued Expenses 10,774 6,775
Taxes Payable 4,973 8,547
Other Liabilities 1,587 -
Non-controlling Interest 6,336 369
Total Current Liabilities 62,538 85,794
 
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 4,634,223 4,634,223
Accumulated Deficit (4,028,489) (3,972,243)
Other Comprehensive Income 88,079 54,550
 
Total Stockholders' Equity 737,814 805,191
 
Total Liabilities and Stockholders' Equity $ 800,353 $ 890,985
These statements should be read in conjunction with the year-end financial statements.

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AMANASU ENVIRONMENT CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Nine Month Periods Ended September 30, 2009
(Unaudited)

  2009 2008
Sales $ - $ 227,603
Cost of Goods Sold   -   191,766
Gross Profit - 35,837
 
Expenses   89,743   216,094
Operating Loss (89,743) (180,257)
 
Other Income (expense) :
Interest Income 6,868 15,409
Other Income 70,544 3,190
Interest Expense   -   (2,371)
Net Loss (12,331) (164,029)
 
Loss Attributable to Non-controlling Interest   (5,967)   2,592
Net Loss   (18,298)   (161,437)
         
Other Comprehensive Income:  
Gain (loss) on foreign currency conversion   6,721   7,633
 
Total Comprehensive Loss: $ (11,577) $ (153,804)
Net Loss Per Share - basic and diluted $ - $ -
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.

3


AMANASU ENVIRONMENT CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Month Periods Ended September 30, 2009
(Unaudited)

  2009 2008
Sales $ - $ 156,773
Cost of Goods Sold   -   108,689
Gross Profit - 48,084
 
Expenses   6,539   78,704
Operating Loss (6,539) (30,620)
 
Other Income (expense) :
Interest Income 2,698 4,787
Equity in Losses Of Investee Companies - -
Other Income   451   1,935
Interest Expense - (1,310)
Loss Before Minority Interest (3,390) (25,208)
         
Net Loss Attributable to Non-controlling Interest   12   2,592
Net Loss   (3,378)   (22,616)
Other Comprehensive Income (loss):  
Gain (loss) on foreign currency conversion   (20,087)   7,633
 
Total Comprehensive Loss: $ (23,465 $ (14,983)
Net Loss Per Share - basic and diluted $ - $ -
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.

4


AMANASU ENVIRONMENT CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Month Periods Ended September 30, 2009 and 2008
(Unaudited)

CASH FLOWS FROM OPERATIONS: 2009 2008
Net Loss - Adjustments to reconcile net loss to net cash consumed by operating activities: $ (18,298) $ (161,437)
Depreciation and amortization 1,331 6,426
Non-controlling interest in subsidiary profit (loss) 5,967 (2,592)
     
Changes in assets and liabilities:
Increase in accounts and notes receivable (7,005) (87,538)
Increase in inventory - (33)
Increases in accrued expenses 3,999 112,908
Decrease in accrued interest receivable - 4,780
Increase in other liabilities 1,587 -
Increase in advances to employees - 44,504
Decrease in taxes payable (3,574) (20,574)
Increase in accounts payable - 13,692
Decrease (increase) in prepaid expenses - (4,204)
Decrease (increase) in other receivables - (11,735)
Increase in advance from customers - 43,141
Net Cash Consumed By Operating Activities   (15,993)   (62,663)
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease (increase) in investments 90,480 (47,025)
Redemption of certificate of deposit 85,000 50,000
Increase in miscellaneous receivables   (93,196)   -
Net Cash Provided (Consumed) By Investing Activities   82,284   2,975
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in short term loan (24,230) 37,190
Increase in Bank Loan   -   6,074
Net Cash Provided (Consumed) By Financing Activities   (24,230)   43,264
 
Effect on Cash of Exchange Rate Changes (35,044) (1,446)
 
Net Change in Cash Balances (7,017) (17,870)
Cash balance, beginning of period 7,583 18,293
Cash balance, end of period $ 566 $ 423
These statements should be read in conjunction with the year-end financial statements.

5


AMANASU ENVIRONMENT CORPORATION and SUBSIDIARIES
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS
September 30, 2009
(Unaudited)

1. BASIS OF PRESENTATION

The unaudited interim consolidated financial statements of Amanasu Environment Corporation and Subsidiaries ("the Company") as of September 30, 2009 and for the nine and three month periods ended September 30, 2009 and 2008 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 nine and three month periods ended September 30, 2009 are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2009.

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-K for the year ended December 31, 2008.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

This Form 10Q 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-K 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, 2008.

COMPANY OVERVIEW

History

Amanasu Environment Corporation ("Company") was incorporated in the State of Nevada on February 22, 1999 under the name of Forte International Inc. On March 27, 2001, the Company's name was changed to Amanasu Energy Corporation, and on November 13, 2002, its name was changed to Amanasu Environment Corporation.

It has acquired the exclusive, worldwide license rights to a high temperature furnace, a hot water boiler, and ring-tube desalination methodology. At this time, the Company is not engaged in the commercial sale of any of its licensed technologies. Its operations to date have been limited to acquiring the 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 of the technology. The Company has conducted various internal tests on these units to determine the commercial viability of the underlying technologies. As a 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 the Company can capitalize on the existing infrastructure of such other companies, such as product design and engineering, marketing and sales, and warranty and post-warranty service and repair. The Company believes that its marketing efforts to sell any of its products will be limited until such time as it 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.

On June 8, 2000, the Company obtained the exclusive, worldwide license to a technology that disposes of toxic and hazardous wastes through a proprietary, high temperature combustion system, known as the Amanasu Furnace. The rights were obtained pursuant to a license agreement with Masaichi Kikuchi, the inventor of the technology, for a period of 30 years. The Company issued 1,000,000 share of common stock to the inventor and 200,000 shares of common stock to a director of the inventor's company. Under the licensing agreement; the Company is required to pay the licensor a royalty of two percent of the gross receipts from the sale of products using the technology. If the Company fails to comply with any provision of the agreement after a 90-day notice period, the licensor may terminate the agreement.

Effective September 30, 2002, the Company obtained the exclusive, worldwide license to a hot water boiler technology that incinerates waste tires in a safe and non-polluting manner and extracts heat energy from the incineration process. The rights were obtained pursuant to a license agreement with Sanyo Kogyo Kabushiki Gaisha and Ever Green Planet Corporation, both Japanese companies, for a period of 30 years. As consideration for this acquisition, the Company paid the licensors $250,000, of which the Company's President paid $95,000, issued to them 600,000 shares of common stock, and issued to an affiliate of the licensors 50,000 shares of common stock. The licensors are entitled to receive a two percent royalty on the gross receipts from the sale of the products related to the technology. If the Company fails to comply with any provision of the agreement after a 90-day notice period, the licensor may terminate the agreement.

On June 30, 2003, the Company acquired the exclusive worldwide rights to produce and market a patented technology that purifies seawater, and removes hazardous pollutants from wastewater. The rights were obtained pursuant to a license agreement with Etsuro Sakagami, the inventor, for a period of 30 years. As consideration for obtaining the license, the Company issued 1,000,000 shares to the inventor, and 50,000 shares to a finder. The licensor is entitled to receive a two percent royalty on the gross receipts from the sale of the products related to the technology. If the Company fails to comply with any provision of the agreement after a 90-day notice period, the licensor may terminate the agreement.

Current

The Company is currently pursuing two long term product research & development projects. The development stage of these products will be approximately 2-3 years. The first project is a jointed Research & Development venture to develop a new economical Hydrogen Fuel Generation System, which is currently in its proto-type phase. This system aims to dramatically lower the cost of hydrogen fuel production to enable Hydrogen based fuel to take a competative advantage over Gasoline.

The second project is assisting Amanasu Maritech Corporation in government and IMO (International Marine Organization) approval of a Ballast Water Purification System of cargo ships. This initial product is completed, however, the various North American, and asian government approval process is estimated at 24 months.

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PRODUCTS

Amanasu Environment

Amanasu Furnace

The Company still holds patents with manufacturing and sales rights for the following technologies; however, they are not the main focus of the Company at this time, and are retained for further development at a later time, or integrated with newer technologies, or possible sold to a prospective buyer.

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.

"Patents"

1. Rotary kiln (Patent number 3564012, as of July 2nd, 2005); 2. Rotary kiln-Taiwan (Patent number 131102, as of August 21st, 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)

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.

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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

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.

PLAN OF OPERATION

Amanasu Environment Corporation

The Company's for the fiscal year ending December 31, 2009, will continue its efforts to find investors interested in its BJSS, Petstyle, Amanasu Japan Projet Support, and Amanasu Eco Frontier businesses. The Company has also committed to developing two long term environmental technology projects. The first technology is the Commercial Ballast Water Filtration System (read the Amanasu Maritech Corporation section for more details). The Company will assist Amanasu Maritech Corporation with business and development relations in North America. The approximate approval time is two years, and the Company cannot guarantee, however, believes it will receive approval by 2012. The second will be a joint research & development project with Ishikawa Laboratories in Japan to develop a cost effective Hydrogen Fuel Generation System for fuel stations and other industrial applications. Current market prices of Gasoline and Hydrogen fuels are nearly even, and the Company believes that if a more economical Hydrogen Fuel generation system were developed, it would tip the balance of the vehicle market in favor of Hydrogen based vehicles/automobiles.

The Company believes that attaining the manufacturing and sales rights of these technologies is key in generating its capital objective.

Amanasu Maritech Corporation (Formerly Amanasu Holdings Corporation)

With the Company moving in a slightly newer direction, Amanasu Maritech Corporation is facilitating the sale of BJSS, Amanasu Energy, Petstyle, Amanasu Eco Frontier, and Amanasu Project Support. , and also assist the Company in generating the $30,000,000 capital objective. To assist in attaining the capital objective, Amanasu Maritech Corporation continues to meet with prospective investors within Japan, aswell as China, and South Korea.

During the quarter ending June 30, 2009 Amanasu Holdings Corporation, transferred ownership of Amanasu Water Corporation to its sister company Amanasu Techno Holdings, for 200,000 shares of Amanasu Techno Holdings. Amanasu Holdings Corporation was then renamed to Amanasu Maritech Corporation. Amanasu Maritech Corporation made an agreement with Asian Marine Trading Corporation in Japan for the sales and manufacturing rights of a Commercial Ballast Water filtration system for large cargo ships. The technology is required to go through Japanese Government approval, as well as IMO (International Maritime Organisation) approval, Japanese Government Approval which will be the main focus of Amanasu Maritech Corporation for the next 12 months. The Company previously stated it would take a total of 12 months for the approval process; however, new estimates total approval process to be approximately 24 months. The company does not see this long process as a threat to its entrance into the market, as there are currently only 4 other companies with IMO approved products. Once approval is attained, Amanasu Maritech Corporation and its partners will begin sales and manufacturing operations set tentatively for early 2012.

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FINANCIAL RESULTS

Three Months Ended September 30, 2009

The Company's sales for the three months ended September 30, 2009 were $0.00 compared to $156,773 for the same period in 2008. The decrease is due primarily to the sale of Amanasu Water Corporation, and Amanasu Shinwa Corporation. Amanasu Water Corporation (operations were decreased before the sale), provided income from its Hydrogen and Oxygenated water sales, and Amanasu Shinwa provided income through management fees.

Cost of Goods Sold for the three months ended September 30, 2009 were $0.00 compared to $108,689 for the same period in 2008. The decrease is due to the sale of Amanasu Water Corporation (operations decreased before the sale) and Amanasu Shinwa Corporation.

Interest income for the three months ended September 30, 2009 were $2,698 compared to $4,787 for the same period in 2008. The decrease is due to funds transferred from Certificate of Deposits to expense accounts, which resulted in less invested in Certificate of Desposits. Also due lower interest rates have decreased the amount in return.

Total expenses for the three months period ended September 30, 2009 were $6,539 compared to $78,704 for the same period of 2008. The decrease was due primarly to the sale of Amanasu Water Corporation.

Total Assets for the three month period ended September 30, 2009 were $800,353 compared to $890,985 during the same period in 2008. The decrease is due primarily to transferring of funds from investments to expense accounts, with the funds used for professional fees.

LIQUIDITY AND CAPITAL RESOURCES

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 ARRANAGEMENTS

The Company has no off-balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not Applicable.

Item 4. 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 10Q. 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 Q 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 Q, and (ii) the financial statements, and other financial information included in this quarterly report on Form 10 Q, 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 Q.

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Item 4T. Controls and Procedures

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 these internal controls, including any corrective actions with regards to significant deficiencies and material weaknesses.

Part II

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

None.

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. Other Information

None.

Item 6. Exhibits

Furnish the Exhibits required by Item 601 of Regulation S-K (229.407 of this chapter).
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.

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused his report to be signed on its behalf by the undersigned thereunto duly authorized.

Amanasu Environment Corporation

Date: November 23, 2009

By: /s/ Atsushi Maki
Atsushi Maki
Chairman and Chief Executive Officer

By: /s/ Lina Lei
Lina Lei
Chief Financial Officer

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