Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 08, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | AMANASU ENVIRONMENT CORP | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Entity Central Index Key | 0001142801 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 44,100,816 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash | $ 206 | $ 3,290 |
Due from affiliates | 25,094 | 6,273 |
Total current assets | 25,300 | 9,563 |
Total Assets | 25,300 | 9,563 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 11,925 | 14,244 |
Accrued expenses - related parties | 116,595 | 83,909 |
Accrued interest - stockholders | 67,760 | 53,399 |
Taxes payable | 31,002 | 30,750 |
Loans from stockholders | 389,940 | 356,720 |
Total current liabilities | 617,222 | 539,022 |
Stockholders' Deficit: | ||
Common Stock: authorized 100,000,000 shares of $.001 par value;44,100,816 shares issued and outstanding | 44,101 | 44,101 |
Additional paid in capital | 4,793,552 | 4,793,552 |
Accumulated deficit | (5,433,925) | (5,371,553) |
Accumulated other comprehensive income | 4,653 | 4,736 |
Total Amanasu Environment Corporation stockholders' deficit | (591,619) | (529,164) |
Non controlling interest in subsidiary | (303) | (295) |
Total stockholders' deficit | (591,922) | (529,459) |
Total Liabilities and Stockholders' Deficit | $ 25,300 | $ 9,563 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares par value | $ 0.001 | $ 0.001 |
Common stock shares issued | 44,100,816 | 44,100,816 |
Common stock shares outstanding | 44,100,816 | 44,100,816 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Cost of revenue | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
General and administrative expenses | 12,298 | 13,128 | 48,011 | 50,240 |
Operating loss | (12,298) | (13,128) | (48,011) | (50,240) |
Other Expense: | ||||
Interest expense - stockholders | (4,982) | (4,504) | (14,361) | (12,755) |
Net loss before income taxes | (17,280) | (17,632) | (62,372) | (62,995) |
Income taxes | 0 | 0 | 0 | 0 |
Net loss | (17,280) | (17,632) | (62,372) | (62,995) |
Net loss attributable to non-controlling interest | 0 | 0 | 0 | 0 |
Net loss attributable to Amanasu Environment Corporation Shareholders | (17,280) | (17,632) | (62,372) | (62,995) |
Other Comprehensive Income (Loss): | ||||
Foreign currency translation adjustment | 97 | 279 | (91) | 95 |
Total Comprehensive Loss | (17,183) | (17,353) | (62,463) | (62,900) |
Comprehensive income (loss) attributable to non-controlling interest | 9 | 26 | (8) | 9 |
Comprehensive loss attributable to Amanasu Environment Corporation Stockholders | $ (17,192) | $ (17,379) | $ (62,455) | $ (62,909) |
Net loss per share - basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Average number of shares outstanding - basic and diluted | 44,100,816 | 44,100,816 | 44,100,816 | 44,100,816 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT (Unaudited) - USD ($) | Common Stock | Paid-In Capital | Accumulated Deficit | Comprehensive Income | Noncontrolling Interest | Total |
Balance - shares at Dec. 31, 2017 | 44,100,816 | |||||
Balance at Dec. 31, 2017 | $ 44,101 | $ 4,793,552 | $ (5,283,423) | $ 5,001 | $ (269) | $ (441,038) |
Net loss | (62,995) | (62,995) | ||||
Other comprehensive income (loss) | 86 | 9 | 95 | |||
Balance - shares at Sep. 30, 2018 | 44,100,816 | |||||
Balance at Sep. 30, 2018 | $ 44,101 | 4,793,552 | (5,346,418) | 5,087 | (260) | (503,938) |
Balance - shares at Jun. 30, 2018 | 44,100,816 | |||||
Balance at Jun. 30, 2018 | $ 44,101 | 4,793,552 | (5,328,786) | 4,834 | (286) | (486,585) |
Net loss | (17,632) | (17,632) | ||||
Other comprehensive income (loss) | 253 | 26 | 279 | |||
Balance - shares at Sep. 30, 2018 | 44,100,816 | |||||
Balance at Sep. 30, 2018 | $ 44,101 | 4,793,552 | (5,346,418) | 5,087 | (260) | (503,938) |
Balance - shares at Dec. 31, 2018 | 4,410,816 | |||||
Balance at Dec. 31, 2018 | $ 44,101 | 4,793,552 | (5,371,553) | 4,736 | (295) | (529,459) |
Net loss | (62,372) | (62,372) | ||||
Other comprehensive income (loss) | (83) | (8) | (91) | |||
Balance - shares at Sep. 30, 2019 | 44,100,816 | |||||
Balance at Sep. 30, 2019 | $ 44,101 | 4,793,552 | 4,793,552 | 4,653 | (303) | (591,922) |
Balance - shares at Jun. 30, 2019 | 44,100,816 | |||||
Balance at Jun. 30, 2019 | $ 44,101 | 4,793,552 | (5,416,645) | 4,565 | (312) | (574,739) |
Net loss | (17,280) | (17,280) | ||||
Other comprehensive income (loss) | 88 | 9 | 97 | |||
Balance - shares at Sep. 30, 2019 | 44,100,816 | |||||
Balance at Sep. 30, 2019 | $ 44,101 | $ 4,793,552 | $ 4,793,552 | $ 4,653 | $ (303) | $ (591,922) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATIONS | ||
Net loss | $ (62,372) | $ (62,995) |
Adjustments to reconcile net loss to total cash used in operating activities | ||
Amortization of right of use asset | 10,353 | 0 |
Changes in assets and liabilities: | ||
Accounts payable and accrued expenses | (2,358) | 542 |
Accrued expenses - related parties | 32,625 | (3,758) |
Operating lease liabilities | (10,353) | 0 |
Accrued interest - stockholders | 14,361 | 12,755 |
Net Cash Used in Operating Activities | (17,744) | (53,456) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Advances from stockholders, net of repayment | 33,220 | 73,865 |
Due to affiliates | (18,560) | (20,847) |
Net Cash Provided by Financing Activities | 14,660 | 53,018 |
Net Change In Cash | (3,084) | (438) |
Cash balance, beginning of period | 3,290 | 5,433 |
Cash balance, end of period | 206 | 4,995 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 0 | 0 |
Cash paid for income taxes | $ 0 | $ 0 |
1. BASIS OF PRESENTATION
1. BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 September 30, 2019, the results of operations for the three and nine months ended September 30, 2019 and 2018, and cash flows for the nine months ended September 30, 2019 and 2018. These results are not necessarily indicative of the results to be expected for the full year or any other period. The December 31, 2018 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, 2018, as filed with the Securities and Exchange Commission (“SEC”) on April 1, 2019. |
2. GOING CONCERN
2. GOING CONCERN | 9 Months Ended |
Sep. 30, 2019 | |
Going Concern | |
2. GOING CONCERN | The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As shown in the financial statements, the Company had a working capital deficiency of $591,922 and an accumulated deficit of $5,433,925 at September 30, 2019, 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 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 operations to date have been limited to conducting various tests on its technologies and seeking financing. The Company will continue to develop and market its technologies, which the Company believes have great market potential. As such, the Company continues to pursue additional sources of financing. Currently the company is exploring various potential investment partners in Japan, as well as China. There can be no assurances that the Company can secure additional financing. . The present plans, the realization of which cannot be assured, to overcome these difficulties also include, but are not limited to, a continuing effort to investigate business acquisitions and joint ventures. |
3. SUMMARY OF SIGNIFICANT ACCOU
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
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 an operating lease liability of $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. During the nine months ended September 30, 2019, 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
4. RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
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 nine months ended September 30, 2019, the Company borrowed $33,220 from a stockholder. The balances due as of September 30, 2019 and December 31, 2018 were $389,940 and $356,720, respectively. Interest expense associated with these loans were $4,413 and $12,674 for the three and nine months ended September 30, 2019 as compared to $3,935 and $11,068 for the three and nine months ended September 30, 2018. Accrued interest on these loans were $57,111 and $44,437 at September 30, 2019 and December 31, 2018, 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 September 30, 2019 and December 31, 2018 amounts due to the stockholder were $27,500 and $20,000, respectively. For the most part, these payments are made by the Company’s affiliate. As such, when the 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. The Company's executive offices are located at 445 Park Avenue Center 10th Floor New York, NY 10022, and Vancouver, British Columbia. The total premises in Vancouver are 2,000 square feet and are leased from a stockholder at a monthly rate of $2,625 under a lease agreement which expires October 1, 2019. At September 30, 2019 and December 31, 2018, amounts due to the stockholder were $80,058 and $56,433, respectively. The Company shares the space with Amanasu Techno Holdings Corp, a reporting company under the Securities Exchange Act of 1934. Amanasu Techno Holdings Corp is responsible for 50% of the rent. 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 to affiliate in the accompanying balance sheets amounts due to related parties. The office in New York is rented at the rate of $328 each year and is also shared with Amanasu Techno Holdings Corp. In addition, the Company maintains an office at Suite 905, 1-6-1 Senzoku Taito-Ku Tokyo Japan. The net balances due from Amanasu Techno Holdings at September 30, 2019 and December 31, 2018 were $74,345 and $55,785, respectively. Amanasu Corp. is the principal stockholder of the Company. The balance due to Amanasu Corp. was $50,000 and $50,000 at September 30, 2019 and December 31, 2018, respectively. Interest expense associated with this loan was $569 and $1,687 for the three and nine months ended September 30, 2019 as compared to $569 and $1,687 for the three and nine months ended September 30. 2018. No terms for repayment have been established. As a result, the amount is classified as a current liability. Accrued interest on this loan were $10,649 and $8,962 at September 30, 2019 and December 31, 2018, respectively. |
5. INCOME TAXES
5. INCOME TAXES | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
5. INCOME TAXES | 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. The Company has experienced losses since its inception. As a result, it has incurred no Federal income tax. The Company can carry forward net operating losses (NOL's) to be applied against future profits for a period of twenty years in the U.S. and 80% of the NOL can be carried forward for nine years in Japan. 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 us 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 assets relating to the NOL’s for every period because it is more likely than not that all of the deferred tax assets will not be realized. On December 22, 2017, legislation commonly known as the Tax Cuts and Jobs Act, or the Tax Act, was signed in to law. The Tax Act, among other changes, reduces the U.S. federal corporate tax rate from 35% to 21%, requires taxpayers to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. On December 31, 2018, we did not have any earnings from foreign subsidiaries and the international aspects of the Tax Act are not applicable. The Company had NOL carryforwards of approximately $3.8 million in the U.S. and $7,500 in Japan at September 30, 2019. Approximately $3.65 million in the U.S. and $7,500 in Japan will expire in the years 2019 through 2037, and $0.15 million can be carried forward indefinitely. |
6. OPERATING LEASE LIABILITY
6. OPERATING LEASE LIABILITY | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
6. OPERATING LEASE LIABILITY | The Company leases office space from its officer in one location from October 2017 to September 2019 with a monthly payment of $1,250. Upon adoption of ASC 842, Leases, on January 1, 2019 the Company recorded $10,353 of right-use assets and related operating leases 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% as of January 1, 2019 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 $1,250. Total rent expense under operating leases for the three and nine months ended September 30, 2019 was $3,750 and $11,250, respectively, as compared to $3,750 and $11,250 for the three and nine months ended September 30, 2018, respectively. |
7. SUBSEQUENT EVENTS
7. SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
7. SUBSEQUENT EVENTS | The Company evaluated subsequent events, which are events or transactions that occurred after September 30, 2019 through the issuance of the accompanying financial statements and determined that no significant subsequent event need to be recognized or disclosed. |
2. GOING CONCERN (Details Narra
2. GOING CONCERN (Details Narrative) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Going Concern | ||
Working capital | $ (591,922) | |
Accumulated deficit | $ (5,433,925) | $ (5,371,553) |
4. RELATED PARTY TRANSACTIONS (
4. RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Shareholders And Officers | |||||
Due to related party | $ 389,940 | $ 389,940 | $ 356,720 | ||
Accrued interest | 57,111 | 57,111 | 44,437 | ||
Interest expense | 4,413 | $ 3,935 | 12,674 | $ 11,068 | |
Lina Maki | |||||
Due to related party | 27,500 | 27,500 | 20,000 | ||
Stockholder | |||||
Due to related party | 80,058 | 80,058 | 56,433 | ||
Amanasu Corp. | |||||
Due to related party | 50,000 | 50,000 | 50,000 | ||
Accrued interest | 10,649 | 10,649 | $ 8,962 | ||
Interest expense | $ 569 | $ 569 | $ 1,687 | $ 1,687 |
5. INCOME TAXES (Details Narrat
5. INCOME TAXES (Details Narrative) | Sep. 30, 2019USD ($) |
United States | |
Net operating loss carryforward | $ 3,800,000 |
Japan | |
Net operating loss carryforward | $ 7,500 |
6. OPERATING LEASE LIABILITY (D
6. OPERATING LEASE LIABILITY (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Leases [Abstract] | ||||
Right-use assets | $ 10,353 | $ 10,353 | ||
Operating leases liabilities | 10,353 | 10,353 | ||
Rent expense | $ 3,750 | $ 3,750 | $ 11,250 | $ 11,250 |