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EX-32.2 - CERTIFICATE PURSUANT TO SECTION 18 U.S.C. PURSUANT TO SECTION 906 OF THE SARBANE - AMANASU TECHNO HOLDINGS CORPath_ex322.htm
EX-32.1 - CERTIFICATE PURSUANT TO SECTION 18 U.S.C. PURSUANT TO SECTION 906 OF THE SARBANE - AMANASU TECHNO HOLDINGS CORPath_ex321.htm
EX-31.2 - CERTIFICATION PURSUANT TO RULE 13A-14(A)/15D-14(A) CERTIFICATIONS SECTION 302 OF - AMANASU TECHNO HOLDINGS CORPath_ex312.htm
EX-31.1 - CERTIFICATION PURSUANT TO RULE 13A-14(A)/15D-14(A) CERTIFICATIONS SECTION 302 OF - AMANASU TECHNO HOLDINGS CORPath_ex311.htm
 
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549 
  
FORM 10-Q
 
  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended: March 31, 2020
 
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
Commission File Number: 001-31261
 
AMANASU TECHNO HOLDINGS CORRPORATION
(Exact name of registrant as specified in its charter)
 
Nevada
 
98-0351508
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
 
224 Fifth Avenue, 2nd Floor
New York, NY 10022
(Address of principal executive offices)
 
(604) 790-8799
(Registrant’s telephone number, including area code)
 
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
N/A
 
N/A
 
N/A
                    
Securities registered pursuant to Section 12(g) of the Act:
Common Stock $.001 par value
(Title of class)
 
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 past 12 months, and (2) has been subject to such filing requirements for the past 90 days.  Yes    No
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files.  Yes    No
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer,  smaller  reporting  company,  or an emerging  growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
 
 
Emerging growth company
 
If an emerging growth company,  indicate  by  check mark if  the registrant  has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided  pursuant  to Section  7(a)(2)(B) of  the Securities Act.   
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes    No
 
As of May 8, 2020, there were 46,956,300 shares outstanding of the registrant’s common stock.
 

 
 
 
AMANASU TECHNO HOLDINGS CORPORATION
QUARTERLY REPORT ON FORM 10-Q
FOR THE PERIOD ENDED MARCH 31, 2020
 
TABLE OF CONTENTS
 
  
 
2
 
 
PART I
 
ITEM 1. FINANCIAL STATEMENTS
 
AMANASU TECHNO HOLDINGS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
 
 
March 31,
2020
 
 
December 31,
2019
 
ASSETS
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
Cash
 $83 
 $8,215 
 
    
    
Total current assets
  83 
  8,215 
 
    
    
Operating lease right-of-use assets
  21,634 
  25,084 
 
    
    
Total Assets
 $21,717 
 $33,299 
 
    
    
LIABILITIES & STOCKHOLDERS' DEFICIT
    
    
Current Liabilities:
    
    
Accrued expenses – stockholders and officers
 $155,523 
 $156,823 
Operating lease liabilities – current
  14,242 
  14,065 
Accrued expenses – other
  7,000 
  - 
Due to affiliate
  67,852 
  67,822 
Advances from stockholders and officers
  382,225 
  370,835 
Deposit on stock purchase
  61,030 
  61,030 
Total current liabilities
  687,872 
  670,575 
 
    
    
Operating lease liabilities
  7,392 
  11,019 
 
    
    
Total Liabilities
  695,264 
  681,594 
 
    
    
Stockholders' Deficit:
    
    
Common Stock: authorized 100,000,000 shares of $.001 par value; 46,956,300 shares issued and outstanding
  46,956 
  46,956 
Additional paid in capital
  1,552,891 
  1,552,891 
Accumulated deficit
  (2,273,394)
  (2,248,142)
Total stockholders' deficit
  (673,547)
  (648,295)
 
    
    
Total Liabilities and Stockholders' Deficit
 $21,717 
 $33,299 
 
The accompanying notes are an integral part of these consolidated financial statements.
 
 
3
 
 
AMANASU TECHNO HOLDINGS CORPORATION
CONSOLOIDATED STATEMENTS OF OPERATIONS
 (Unaudited)
 
 
 
Three Months Ended
 March 31,
2020
 
 
Three Months Ended
 March 31,
2019
 
 
 
 
 
 
 
 
Revenue
 $- 
 $- 
Cost of goods sold
  - 
  - 
Gross Profit
  - 
  - 
 
    
    
General and administrative expenses
  21,025 
  20,241 
 
    
    
Operating loss
  (21,025)
  (20,241)
 
    
    
Other expense:
    
    
Interest expense - stockholders
  (4,227)
  (3,566)
 
    
    
Loss before income tax
  (25,252)
  (23,087)
Income taxes
  - 
  - 
 
    
    
Net loss
 $(25,252)
 $(23,087)
 
    
    
Loss per share - Basic and Diluted
 $(0.00)
 $(0.00)
 
    
    
Weighted average number of common shares outstanding - Basic and Diluted
  46,956,300 
  46,956,300 
 
The accompanying notes are an integral part of these condensed financial statements.
  
 
4
 
 
AMANASU TECHNO HOLDINGS CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT
 (Unaudited)
 
 
 
 
 
 
Additional
 
 
 
 
 
 
 
 
 
Common Stock
 
 
Paid-In
 
 
Accumulated
 
 
 
 
 
 
Shares
 
 
Value
 
 
Capital
 
 
Deficit
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at January 1, 2020
  46,956,300 
 $46,956 
 $1,552,891 
 $(2,248,142)
 $(648,295)
Net loss
   
   
   
  (25,252)
  (25,252)
Balance at March 31, 2020
  46,956,300 
 $46,956 
 $1,552,891 
 $(2,273,394)
 $(673,547)
 
 
 
 
 
 
Additional
 
 
 
 
 
 
 
 
 
Common Stock
 
 
Paid-In
 
 
Accumulated
 
 
 
 
 
 
Shares
 
 
Value
 
 
Capital
 
 
Deficit
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at January 1, 2019
  46,956,300 
 $46,956 
 $1,552,891 
 $(2,166,566)
 $(566,719)
Net loss
   
   
   
  (23,807)
  (23,807)
Balance at March 31, 2019
  46,956,300 
 $46,956 
 $1,552,891 
 $(2,190,373)
 $(590,526)
  
The accompanying notes are an integral part of these condensed financial statements.
 
 
5
 
 
AMANASU TECHNO HOLDINGS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
 
 
Three Months Ended
 March 31,
2020
 
 
Three Months Ended
 March 31,
2019
 
CASH FLOWS FROM OPERATIONS
 
 
 
 
 
 
Net loss
 $(25,252)
 $(23,807)
Changes in assets and liabilities:
    
    
Accrued expenses – stockholders and officers
  (1,300)
  (8,238)
Accrued expenses – other
  7,000 
  4,000 
Total Cash Used in Operating Activities
  (19,552)
  (28,045)
 
    
    
 
    
    
CASH FLOWS FROM FINANCING ACTIVITIES
    
    
Increase in amounts due to affiliate
  30 
  13,011 
Proceeds from loans from stockholders and officers
  11,390 
  13,900 
Total Cash Provided by Financing Activities
  11,420 
  26,911 
 
    
    
Net Change In Cash
  (8,132)
  (1,134)
 
    
    
Cash balance, beginning of period
  8,215 
  1,544 
 
    
    
Cash balance, end of period
 $83 
 $410 
 
Supplemental disclosures of cash flow information:
Cash paid for interest
 $- 
 $- 
Cash paid for taxes
 $- 
 $- 
  
The accompanying notes are an integral part of these consolidated financial statements.
 
 
6
 
 
AMANASU TECHNO HOLDINGS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)
 
1. BASIS OF PRESENTATION
 
The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position of the Company as of March 31, 2020, the results of operations for the three months ended March 31, 2020 and 2019, and cash flows for the three months ended March 31, 2020 and 2019. These results are not necessarily indicative of the results to be expected for the full year or any other period. The December 31, 2019 balance sheet included herein was derived from the audited financial statements included in the Company’s Annual Report on Form 10-K as of that date.  Accordingly, the financial statements included herein should be reviewed in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed with the Securities and Exchange Commission (“SEC”) on March 30, 2020.
 
2. GOING CONCERN UNCERTAINTY
 
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As shown in the consolidated financial statements, the Company had a working capital deficiency of $687,789 and an accumulated deficit of $2,273,394 at March 31, 2020, and a record of continuing losses. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern. The consolidated financial statements do not include adjustments that might result from the outcome of this uncertainty.
 
The Company's present plans, the realization of which cannot be assured, to overcome these difficulties include, but are not limited to, a continuing effort to investigate business acquisitions and joint ventures. The Company will also continue to investigate and develop technologies, which the Company believes have great market potential. As such, the Company may need to pursue additional sources of financing. There can be no assurances that the Company can secure additional financing.
 
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard is effective on January 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on January 1, 2019 and use the effective date as the date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company elects the ‘package of practical expedients’, which permits the Company not to reassess under the new standard prior conclusions about lease identification, lease classification and initial direct costs. The Company determined that this standard will have a material effect on the Company’s financial statements. While the Company continues to assess all of the effects of adoption, the Company currently believes the most significant effects relate to the recognition of new ROU assets and lease liabilities on the Company’s balance sheet for the Company’s real estate operating leases. On adoption, the Company recognized additional an operating lease liability of approximately $10,353 with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases (see Note 6).
  
 
7
 
 
 AMANASU TECHNO HOLDINGS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)
 
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
 
The Company’s operations may be affected by the recent and ongoing outbreak of the coronavirus disease 2019 (COVID-19) which in March 2020, was declared a pandemic by the World Health Organization. The ultimate disruption which may be caused by the outbreak is uncertain; however, it may result in a material adverse impact on the Company’s financial position, operations and cash flows. Possible areas that may be affected include, but are not limited to, disruption to the Company’s ability to obtain funding and performing further research on certain projects.
 
During the three months ended March 31, 2020, there have been no other material changes in the Company’s significant accounting policies to those previously disclosed in the Annual Report.
 
No recently issued accounting pronouncements had or are expected to have a material impact on the Company’s consolidated financial statements.
 
4. RELATED PARTY TRANSACTIONS
 
The Company receives periodic advances from its principal stockholders and officers based upon the Company’s cash flow needs. There is no written loan agreement between the Company and the stockholders and officers. All advances bear interest at 4.45% and no repayment terms have been established. As a result, the amount is classified as a current liability. During the three months ended March 31, 2020, the Company borrowed $11,390 from a stockholder. The balances due as of March 31, 2020 and December 31, 2019 were $382,225 and $370,835, respectively. Interest expense associated with these loans were $4,227 and $3,566 for the three months ended March 31, 2020 and 2019, respectively. Accrued interest on these loans were $97,423 and $93,196 at March 31, 2020 and December 31, 2019, respectively.
 
The Company has an arrangement with Lina Maki, a stockholder of the Company, for her management consulting time. The agreement is not written and no payment terms have been established. The fee is $10,000 annually. As of March 31, 2020 and December 31, 2019 amounts due to the stockholder were $52,500 and $50,000, respectively.
 
The Company also leases its office space from a stockholder of the Company. At March 31, 2020 and December 31, 2019, amounts due to the stockholder were $3,700. For the most part, lease payments are made by the Company’s affiliate. As such, when the lease payments are made by the Company’s affiliate or the lease payments are made by the Company on behalf of the affiliate, such amounts are shown as a reduction in or addition to the amount due from affiliate in the accompany balance sheets ( see Note 6).
  
5. INCOME TAXES
 
In accordance with the current tax laws in the U.S., the Company is subject to a corporate tax rate of 21% on its taxable income. No provision for taxes is made for U.S. income tax for the three months ended March 31, 2020 and 2019 as it has no taxable income in the U.S.
 
Deferred income taxes are recorded to reflect the tax consequences or benefits to future years of any temporary differences between the tax basis of assets and liabilities, and of net operating loss carryforwards.  In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the assessment, management has established a full valuation allowance against all of the deferred tax asset relating to NOL’s for every period because it is more likely than not that all of the deferred tax asset will not be realized.
 
The Company had NOL carryforwards of approximately $1.42 million at March 31, 2020. Approximately $1.23 million will expire in the years 2020 through 2037, and $0.19 million can be carried forward indefinitely.
  
 
8
 
 
AMANASU TECHNO HOLDINGS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)
.
6. OPERATING LEASE LIABILITY
 
The Company's executive offices are located at 244 Fifth Avenue 2nd Floor New York, NY 10001 and Vancouver, British Columbia. The total premises in Vancouver are 2,000 square feet and are leased at a monthly rate of $2,500 under a lease agreement between the Company and the Secretary of the Company which expired October 1, 2019. The Company entered into a new lease with the Secretary of the Company at a monthly rate of $2,500, which expires October 1, 2021. The Company shares the space with AEC, a reporting company under the Securities Exchange Act of 1934. Our major shareholder and officer own approximately 81% of AEC’s outstanding shares of common stock. AEC is responsible for 50% of the rent or $1,250 each month. The office in New York is rented at the rate of $392 each year and shares with AEC. In addition, the Company maintains an office at Suite 905, 1-6-1 Senzoku Taito-Ku Tokyo Japan, and the Company pays no rent.
 
Upon adoption of ASC 842, Leases, on January 1, 2019 the Company recorded $10,353 of right-of-use assets and related operating lease liabilities. This asset was fully amortized as of September 30, 2019.
 
The Company's lease does not provide an implicit rate, and therefore the Company uses an estimated incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. The Company used incremental borrowing rate of 5% for operating leases that commenced prior to that date.
 
On October 1, 2019, the Company commenced a new lease with its shareholder from October 1, 2019 to September 30, 2021 with a monthly payment of approximately $1,250. As such, the Company recorded $28,492 of right-of-use assets and related operating leases liabilities. For the three months from January 1, 2020 through March 31, 2020, the Company amortized $3,450 of right-of-use assets.
 
The following table reconciles the undiscounted future minimum lease under the non-cancelable operating leases with terms of more than one year to the total lease liabilities recognized on the consolidated balance sheet as of March 31, 2020:
 
2020 – nine months
 $11,250 
2021
  11,250 
Total undiscounted future minimum lease payments
  22,500 
Less: Difference between undiscounted lease payments and discounted lease liabilities
  (866)
Total operating lease liabilities
  21,634 
Less current portion
  (14,242)
Long-term lease liabilities
 $7,392 
 
Total rent expense under operating leases for the three months ended March 31, 2020 and 2019 was $3,750 and $3,750, respectively.
 
7. SUBSEQUENT EVENTS
 
The Company evaluated subsequent events, which are events or transactions that occurred after March 31, 2020 through the issuance of the accompanying financial statements and determined that no significant subsequent event need to be recognized or disclosed.
 
  
 
9
 
 
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 financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed with the Securities and Exchange Commission (“SEC”) on March 30, 2020 (the “Annual Report”).
 
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As shown in the consolidated financial statements, the Company had a working capital deficiency of $687,789 and an accumulated deficit of $2,273,394 at March 31, 2020, and a record of continuing losses. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern. The consolidated financial statements do not include adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue in operation.
 
The Company's present plans, the realization of which cannot be assured, to overcome these difficulties include, but are not limited to, a continuing effort to investigate business acquisitions and joint ventures. The Company will also continue to investigate and develop technologies, which the Company believes have great market potential. As such, the Company may need to pursue additional sources of financing. There can be no assurances that the Company can secure additional financing.
 
Company Overview
 
The Company was incorporated in the State of Nevada on December 1, 1997. Its operations to date have been limited to obtaining the license to various environmental and other technologies, conducting preliminary marketing efforts and seeking financing. The Company's principal offices are at 224 Fifth Avenue, 2nd Floor, New York, NY 10022 Telephone: 604-790-8799. The Tokyo branch is located at Suite 905, 1-6-1 Senzoku Taito-Ku Tokyo Japan. Telephone: 03-5808-3663.
 
General
 
Management’s discussion and analysis of results of operations and financial condition is intended to assist the reader in the understanding and assessment of significant changes and trends related to the results of operations and financial position of the Company together with its subsidiary. This discussion and analysis should be read in conjunction with the consolidated financial statements and accompanying financial notes, and with the Critical Accounting Policies noted below.
 
Plan of Operations
 
The Company's present plans, the realization of which cannot be assured, to overcome its difficulties include, but are not limited to, a continuing effort to investigate business acquisitions and joint ventures. The Company will also continue to investigate and develop technologies, which the Company believes have great market potential. As such, the Company may need to pursue additional sources of financing. There can be no assurances that the Company can secure additional financing.
 
The Company is a development stage corporation. It has not commenced its planned operations of manufacturing and marketing.  Its operations to date have been limited to conducting various tests on its technologies and seeking financing.
 
The Company will continue to investigate and develop technologies, which the Company believes have great market potential. The first technology is an automated personal waste collection and cleaning machine Haruka (formerly "Heartlet"), developed by Nanomax Corporation in Japan. The Haruka is a machine used in retirement homes, hospitals, and even in private residences. The Haruka allows the patient maximum comfort. The Haruka lowers the burden on the caretaker with an automated cleaning system. This machine is the only machine in its class to have a 90% government rebate, which the company believes makes the technology, extremely competitive even in the current global economic crisis. The company obtained sales and manufacturing rights to the Haruka brand and is now seeking, manufacturing partners.
 
 
10
 
 
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
Plan of Operations, continued
 
The second technology is Thoughts Routine Mechanism (“RUNE”) developed by the Company. We plan to develop this operating software to be used on electronic devices, such as smart phones, PC’s and gaming machines. We have secured technology and human resources that extend this technology to other applications outside the gaming sector. The Company has developed an alliance with Valhalla Game Studios (“VGS”) to jointly conduct game development and application development on “fate diagnosis based statistical theory, and “fate diagnosis” game service on mobile phones, smart phones, and tablets. We believe the collaboration between the Company and VGS may contribute to the future growth of the Company. Currently, Mr. Maki offers a wide range of advice as a special advisor, and this business continues to be evaluated and developed. In addition, cartoons, movies and games play a large role and influence world views and we believe that this technology be a very effective tool in this area.
 
The Company will also be concentrating its efforts on capital raising efforts to fund the development and marketing of these technologies. 
As stated above, the Company cannot predict whether or not it will be successful in its capital raising efforts and, thus, be able to satisfy its cash requirements for the next 12 months. If the Company is unsuccessful in raising at least $150,000, it may not be able to complete its plan of expanding operations as discussed above. The company is expecting to gain the capital from issuing and selling the shares of the Company. The Company has been able to fund its existing operations from the proceeds of loans from a shareholder.
 
The Company’s operations may be affected by the recent and ongoing outbreak of the coronavirus disease 2019 (COVID-19) which in March 2020, was declared a pandemic by the World Health Organization. The ultimate disruption which may be caused by the outbreak is uncertain; however, it may result in a material adverse impact on the Company’s financial position, operations and cash flows. Possible areas that may be affected include, but are not limited to, disruption to the Company’s ability to obtain funding and performing further research on certain projects.
 
Results of Operations
 
There were no revenues for the three months ended March 31, 2020 and 2019.
 
General and administrative expenses increased $784 to $21,025 for the three months ended March 31, 2020 as compared to $20,241 for the three months ended March 31, 2019. This increase is mostly attributed mostly to the increase in travel expenses.
 
As a result of the above, the Company incurred a loss from operations of $21,025 for the three months ended March 31, 2020 as compared to a loss from operations of $20,241 for the three months ended March 31, 2019, respectively.
 
For the three months ended March 31, 2020, interest expense increased $661 to $4,227 as compared to $3,566 for the three months ended March 31, 2019 as a result of the increased interest associated with additional advances from stockholders.
 
As a result of the above, the Company incurred net losses of $25,252 for the three months ended March 31, 2020 as compared to $23,807 for the three months ended March 31, 2019.
 
LIQUIDITY AND CAPITAL RESOURCES
 
The Company's minimum cash requirements for the next twelve months are estimated to be $80,000, including rent, audit fees, office expenses, interest and professional fees. The Company does not have sufficient cash on hand to support its overhead for the next twelve months and there are no material commitments for capital at this time other than as described above. The Company will need to issue and sell shares to gain capital for operations or arrange for additional stockholder or related party loans.  There is no current commitment for either of these fund sources.
 
Our working capital deficit increased $25,429 to $687,789 at March 31, 2020 as compared to $662,360 at December 31, 2019 primarily due to a decrease in cash and in increase in accrued expenses from stockholders and officers, accrued expenses-other.
 
On March 31, 2020, the Company had a cash balance of $83. The Company’s principal sources and uses of funds were as follows:
 
Cash used in operating activities. For the three months ended March 31, 2020, the Company used $19,552 in cash for operations as compared to using $28,045 in cash for operations for the three months ended March 31, 2020, primarily as a result of the change in accrued expenses.
 
Cash provided by financing activities. Net cash provided by financing activities for the three months ended March 31, 2020 was $11,420 as compared to $26,911 for the three months ended March 31, 2019 primarily as a result the lower increase in amounts due to affiliate.
 
 
11
 
 
OFF-BALANCE SHEET ARRANAGEMENTS
 
The Company has no off-balance sheet arrangements.
 
CRITICAL ACCOUNTING POLICIES
 
The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America. Preparing financial statements in accordance with generally accepted accounting principles requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reported period.
 
Our critical accounting policies are described in the Notes to the Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the SEC on March 30, 2020 (the “Annual Report”). There have been no changes in our critical accounting policies. Our significant accounting policies are described in our notes to the 2019 consolidated financial statements included in our Annual Report.
   
RECENTLY ISSUED ACCOUNTING STANDARDS
 
No recently issued accounting pronouncements had or are expected to have a material impact on the Company’s consolidated financial statements.
 
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 
Not Applicable.
  
ITEM 4. MANAGEMENT'S REPORT ON DISCLOSURE CONTROLS AND PROCEDURES
 
We maintain disclosure controls and procedures designed to ensure that information required to be disclosed in the reports we file pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”) are recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and that such information is accumulated and communicated to our Principal Executive Officer (“PEO”) and Principal Accounting Officer (“PAO”), to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can only provide a reasonable assurance of achieving the desired control objectives, and in reaching a reasonable level of assurance, management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.  Management designed the disclosure controls and procedures to provide reasonable assurance of achieving the desired control objectives.
 
We carried out an evaluation, under the supervision and with the participation of our management, including our PEO and PAO, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report. Based upon that evaluation, the PEO and PAO concluded that the Company’s disclosure controls and procedures were ineffective for the reasons discussed below. In addition, management identified the following material weaknesses in its assessment of the effectiveness of disclosure controls and procedures as of March 31, 2020.
 
The Company did not effectively segregate certain accounting duties due to the small size of its accounting staff. A material weakness is a deficiency, or a combination of control deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim consolidated financial statements will not be prevented or detected on a timely basis. Notwithstanding the determination that our internal control over financial reporting was not effective, as of March 31 2020, and that there was a material weakness as identified in this Quarterly Report, we believe that our financial statements contained in this Quarterly Report fairly present our financial position, results of operations and cash flows for the years covered hereby in all material respects.
 
We plan on increasing the size of our accounting staff at the appropriate time for our business and its size to ameliorate our concern that we do not effectively segregate certain accounting duties, which we believe would resolve the material weakness in disclosure controls and procedures, but there can be no assurances as to the timing of any such action or that we will be able to do so.
 
(b) Changes in Internal Control over Financial Reporting
 
There were no changes in our internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
 
 
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 PART II
 
ITEM 1. LEGAL PROCEEDINGS
 
We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.
 
ITEM 1A. RISK FACTORS
 
Not applicable to smaller reporting companies.
 
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 
There were no unregistered sales of the Company’s equity securities during the quarter ended March 31, 2020 other than those previously reported in a Current Report on Form 8-K.
 
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
 
There has been no default in the payment of principal, interest, sinking or purchase fund installment, or any other material default, with respect to any indebtedness of the Company.
 
ITEM 4. MINE SAFETY DISCLOSURES
 
Not applicable.  
 
ITEM 5. OTHER INFORMATION
 
None.
  
 
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ITEM 6. EXHIBITS
 
Furnish the Exhibits required by Item 601 of Regulation S-K (229.407 of this chapter).
 
Certification of the Principal Executive Officer of Registrant pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a)).*Certification Pursuant To Section 302 Of The Sarbanes-Oxley Act Of 2002.
 Certification of the Principal Accounting Officer of Registrant pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a)).*
Certification of the Principal Executive Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
Certification of the Principal Accounting Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
101 INS
XBRL Instance Document*
 
 
101 SCH
XBRL Schema Document*
 
 
101 CAL
XBRL Calculation Linkbase Document*
 
 
101 DEF
XBRL Definition Linkbase Document*
 
 
101 LAB
XBRL Labels Linkbase Document*
 
 
101 PRE
XBRL Presentation Linkbase Document*
 
* filed herewith
  
 
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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 Techno Holdings Corporation
 
 
 
 
 
Date: May 15, 2020
By:
/s/  Atsushi Maki
 
 
 
Atsushi Maki
 
 
 
Principal Executive Officer
 
 
 
Principal Accounting Officer
 
 
 
 
 
 
 
 
 
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