Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 12, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | AMANASU ENVIRONMENT CORPORATION | |
Entity Central Index Key | 0001142801 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | true | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Sep. 30, 2021 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Entity Common Stock Shares Outstanding | 44,100,816 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-32905 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 98-0347883 | |
Entity Address Address Line 1 | 224 Fifth Avenue | |
Entity Address Address Line 2 | 2nd Floor | |
Entity Address City Or Town | New York | |
Entity Address State Or Province | NY | |
Entity Address Postal Zip Code | 10022 | |
City Area Code | 604 | |
Local Phone Number | 790-8799 | |
Security 12g Title | Common Stock $.001 par value | |
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash | $ 282 | $ 47 |
Total current assets | 282 | 47 |
Operating lease right-of-use assets | 0 | 11,019 |
Total Assets | 282 | 11,066 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 11,081 | 11,165 |
Accrued expenses - related parties | 128,387 | 108,312 |
Accrued interest - stockholders and officers | 107,807 | 92,766 |
Taxes payable | 29,634 | 32,668 |
Operating lease liabilities - current | 0 | 11,019 |
Due to affiliate | 31,836 | 11,338 |
Loans from stockholders and officers | 449,625 | 441,622 |
Total current liabilities | 758,370 | 708,890 |
Total Liabilities | 758,370 | 708,890 |
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 | (5,600,580) | (5,539,235) |
Accumulated other comprehensive income | 5,099 | 4,115 |
Total Amanasu Environment Corporation stockholders' deficit | (757,828) | (697,467) |
Non-controlling interest in subsidiary | (260) | (357) |
Total stockholders' deficit | (758,088) | (697,824) |
Total Liabilities and Stockholders' Deficit | $ 282 | $ 11,066 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Cost of revenue | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | ||
General and administrative expenses | 15,137 | 12,054 | 46,304 | 46,404 |
Operating loss | (15,137) | (12,054) | (46,304) | (46,404) |
Other Expense: | ||||
Interest expense - stockholders | (5,088) | (5,032) | (15,041) | (14,956) |
Net loss before income taxes | (20,225) | (17,086) | (61,345) | (61,360) |
Net loss | (20,225) | (17,086) | (61,345) | (61,360) |
Net loss attributable to Amanasu Environment Corporation Stockholders | (20,225) | (17,086) | (61,345) | (61,360) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 258 | (258) | 1,081 | (327) |
Total comprehensive loss | (19,967) | (17,344) | (60,264) | (61,687) |
Comprehensive income (loss) attributable to non-controlling interest | 23 | (23) | 97 | (29) |
Less Comprehensive loss attributable to Amanasu Environment Corporation Stockholders | $ (19,990) | $ (17,321) | $ (60,361) | $ (61,658) |
Net loss per share - basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average number of shares outstanding | 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 ($) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated other comprehensive loss | Noncontrolling Interest |
Balance, shares at Dec. 31, 2019 | 44,100,816 | |||||
Balance, amount at Dec. 31, 2019 | $ (614,437) | $ 44,101 | $ 4,793,552 | $ (5,456,421) | $ 4,636 | $ (305) |
Net loss | (61,360) | (61,360) | ||||
Other comprehensive income | (327) | (298) | (29) | |||
Balance, shares at Sep. 30, 2020 | 44,100,816 | |||||
Balance, amount at Sep. 30, 2020 | (676,124) | $ 44,101 | 4,793,552 | (5,517,781) | 4,338 | (334) |
Balance, shares at Jun. 30, 2020 | 44,100,816 | |||||
Balance, amount at Jun. 30, 2020 | (658,780) | $ 44,101 | 4,793,552 | (5,500,695) | 4,573 | (311) |
Net loss | (17,086) | (17,086) | ||||
Other comprehensive income | (258) | (235) | (23) | |||
Balance, shares at Sep. 30, 2020 | 44,100,816 | |||||
Balance, amount at Sep. 30, 2020 | (676,124) | $ 44,101 | 4,793,552 | (5,517,781) | 4,338 | (334) |
Balance, shares at Dec. 31, 2020 | 44,100,816 | |||||
Balance, amount at Dec. 31, 2020 | (697,824) | $ 44,101 | 4,793,552 | (5,539,235) | 4,115 | (357) |
Net loss | (61,345) | (61,345) | ||||
Other comprehensive income | 1,081 | 984 | 97 | |||
Balance, shares at Sep. 30, 2021 | 44,100,816 | |||||
Balance, amount at Sep. 30, 2021 | (758,088) | $ 44,101 | 4,793,552 | (5,600,580) | 5,099 | (260) |
Balance, shares at Jun. 30, 2021 | 44,100,816 | |||||
Balance, amount at Jun. 30, 2021 | (738,121) | $ 44,101 | 4,793,552 | (5,580,355) | 4,864 | (283) |
Net loss | (20,225) | (20,225) | ||||
Other comprehensive income | 258 | 235 | 23 | |||
Balance, shares at Sep. 30, 2021 | 44,100,816 | |||||
Balance, amount at Sep. 30, 2021 | $ (758,088) | $ 44,101 | $ 4,793,552 | $ (5,600,580) | $ 5,099 | $ (260) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATIONS | ||
Net loss | $ (61,345) | $ (61,360) |
Changes in assets and liabilities: | ||
Accounts payable and accrued expenses | 374 | (3,282) |
Accrued expenses - related parties | 20,812 | 20,813 |
Accrued interest - stockholders and officers | 15,041 | 14,956 |
Net Cash Used in Operating Activities | (25,118) | (28,873) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Loans from stockholders | 4,855 | 2,930 |
Due to affiliate | 20,498 | 25,803 |
Net Cash Provided by Financing Activities | 25,353 | 28,733 |
Net Change In Cash | 235 | (140) |
Cash balance, beginning of period | 47 | 211 |
Cash balance, end of period | 282 | 71 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 0 | 0 |
Cash paid for income taxes | $ 0 | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2021 | |
BASIS OF PRESENTATION | |
1. BASIS OF PRESENTATION | 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, 2021, the results of operations for the three and nine months ended September 30, 2021 and 2020, and cash flows for the nine months ended September 30, 2021 and 2020. These results are not necessarily indicative of the results to be expected for the full year or any other period. The December 31, 2020 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, 2020, as filed with the Securities and Exchange Commission (“SEC”) on March 30, 2021. |
GOING CONCERN AND UNCERTAINTY
GOING CONCERN AND UNCERTAINTY | 9 Months Ended |
Sep. 30, 2021 | |
GOING CONCERN AND UNCERTAINTY | |
2. GOING CONCERN AND UNCERTAINTY | 2. GOING CONCERN UNCERTAINTY 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 $758,088 and an accumulated deficit of $5,600,580 at September 30, 2021, 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 that might result from the outcome of this uncertainty. 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. 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES New Accounting Pronouncements During the nine months ended September 30, 2021, 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. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2021 | |
RELATED PARTY TRANSACTIONS | |
4. RELATED PARTY TRANSACTIONS | 4. RELATED PARTY TRANSACTIONS The Company receives periodic loans 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 loans 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, 2021, the Company borrowed $4,855 from a stockholder. The balances due as of September 30, 2021 and December 31, 2020 were $398,955 and $394,100, respectively. Interest expense associated with these loans were $4,520 and $13,354 for the three and nine months ended September 30, 2021 as compared to $4,464 and $13,263 for the three and nine months ended September 30, 2020. Accrued interest on these loans were $92,640 and $79,286 at September 30, 2021 and December 31, 2020, 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, 2021 and December 31, 2020 amounts due to the stockholder were $47,500 and $40,000, respectively. The Company leases its office space in Vancouver from a stockholder of the Company at a monthly rate of $2,500 under a lease agreement which expires October 1, 2021. At September 30, 2021 and December 31, 2020 amounts due to the stockholder were $72,183 and $60,371, 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. 4. RELATED PARTY TRANSACTIONS (continued) The office in New York is rented at the rate of approximately $360 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. Amanasu Corp. is the principal stockholder of the Company. The balance due to Amanasu Corp. was $50,000 and $50,000 at September 30, 2021 and December 31, 2020, respectively. Interest expense associated with this loan were $569 and $1,687 for the three and nine months ended September 30, 2021, as compared to $569 and $1,693 for the three and nine months ended September 30, 2020, respectively. No terms for repayment have been established. As a result, the amount is classified as a current liability in due to related parties. Accrued interest on this loan were $15,167 and $13,480 at September 30, 2021 and December 31, 2020, respectively. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2021 | |
INCOME TAXES | |
5. INCOME TAXES | 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 and nine months ended September 30, 2021 and 2020 as it has no taxable income in the U.S. 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 three years in Japan. The Company had NOL carryforwards of approximately $3.80 million in the U.S. at September 30, 2021.Approximately $3.5 million in the U.S. will expire in the years 2021 through 2037, and $0.30 million can be carried forward indefinitely. 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 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. |
OPERATING LEASE LIABILITY
OPERATING LEASE LIABILITY | 9 Months Ended |
Sep. 30, 2021 | |
OPERATING LEASE LIABILITY | |
6. OPERATING LEASE LIABILITY | 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 expires October 1, 2021. The Company shares the space with ATH, a reporting company under the Securities Exchange Act of 1934. Our major stockholder and officer own approximately 86% of ATH’s outstanding shares of common stock. ATH is responsible for 50% of the rent or $1,250 each month. 6. OPERATING LEASE LIABILITY (continued) 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 the calculation of operating leases liabilities. Total rent expense under operating leases for the three and nine months ended September 30, 2021 was $3,750 and $11,250, as compared to $3,750 and $11,250 for the three and nine months ended September 30, 2020. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
7. COMMITMENTS AND CONTINGENCIES | 7. COMMITMENTS AND CONTINGENCIES The Company is involved in various legal proceedings, claims and litigation arising in the ordinary course of business. The Company does not believe that the disposition of matter that are pending will have a material effect on its condensed consolidated financial statements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
SUBSEQUENT EVENTS | |
8. SUBSEQUENT EVENTS | 8. SUBSEQUENT EVENTS The Company evaluated subsequent events, which are events or transactions that occurred after September 30, 2021 through the issuance of the accompanying financial statements and determined that no significant subsequent event need to be recognized or disclosed. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
New Accounting Pronouncements | During the nine months ended September 30, 2021, there have been no other material changes in the Company’s significant accounting policies to those previously disclosed in the Annual Report. No recently issued accounting pronouncements had or are expected to have a material impact on the Company’s consolidated financial statements. |
GOING CONCERN AND UNCERTAINTY (
GOING CONCERN AND UNCERTAINTY (Details Narrative) | Sep. 30, 2021USD ($) |
GOING CONCERN AND UNCERTAINTY | |
Working capital deficiency | $ (758,088) |
Accumulated deficit | $ (5,600,580) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Monthly rate | $ 2,500 | ||||
Maturity date | Oct. 1, 2021 | ||||
Stockholders and Officers | |||||
Proceeds from loans from stockholders and officers | $ 4,855 | ||||
Due to related party | $ 398,955 | 398,955 | $ 394,100 | ||
Interest expense | 4,520 | $ 4,464 | $ 13,354 | $ 13,263 | |
Interest rate | 4.45 | ||||
Accrued interest | 92,640 | $ 92,640 | 79,286 | ||
Stockholder 2 | |||||
Due to related party | 72,183 | 72,183 | 60,371 | ||
Amanasu Corp. | |||||
Due to related party | 50,000 | 50,000 | 50,000 | ||
Interest expense | 569 | $ 569 | 1,687 | $ 1,693 | |
Accrued interest | 15,167 | $ 15,167 | 13,480 | ||
Rent holiding in percentage | 50 | ||||
Lina Maki [Member] | |||||
Due to related party | $ 47,500 | $ 47,500 | $ 40,000 | ||
Annual fees | $ 10,000 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
INCOME TAXES | |
Net operating loss carryforward | $ 3,800 |
Corporate tax rate | 21 |
U.S. NOL carried forward rate | 80 |
NOL carryforwards Description | Approximately $3.5 million in the U.S. will expire in the years 2021 through 2037, and $0.30 million can be carried forward indefinitely. |
OPERATING LEASE LIABILITY (Deta
OPERATING LEASE LIABILITY (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
OPERATING LEASE LIABILITY | ||||
Rent expense | $ 3,750 | $ 3,750 | $ 11,250 | $ 11,250 |
Incremental borrowing rate | 5 | |||
Monthly leased rate | $ 2,500 | |||
Major stockholder and officer own percentage | 86 | |||
Outstanding shares of common stock percentage | 50 | |||
Rent per month | $ 1,250 | |||
Executive offices Description | The total premises in Vancouver are 2,000 square feet |