SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                   ------------------------------------------

                                   FORM 10-KSB

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

                   For the Fiscal Year Ended December 31, 2001

                           COMMISSION FILE NO. 0-23920


                           AMANASU ENERGY CORPORATION
                   ------------------------------------------
          (Name of small business issuer as specified in its charter)

                NEVADA                                          98 - 0347883
   -------------------------------                             --------------
   (State or other jurisdiction of                             (IRS Employer
          incorporation)                                     Identification No.)

                 701 FIFTH AVENUE, 36TH FLOOR, SEATTLE, WA 98109
                 -----------------------------------------------
                    (Address of principal executive offices)
                    ----------------------------------------

                                  206-262-8188
                                  ------------
                           (Issuer's telephone number)
                           ---------------------------

    Securities registered pursuant to Section 12(b) of the Exchange Act: NONE

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

   Title of each class              Name of each Exchange on which registered:
--------------------------          ------------------------------------------
Common Stock, no par value                             n/a

Check  whether  the issuer (1) filed all reports required to be filed by Section
13  or  15(d) of the Exchange Act during the past 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.
       [X] Yes   [ ] No

Check  if disclosure of delinquent filers pursuant to Item 405 of Regulation S-B
is  not contained in this form, and no disclosure will be contained, to the best
of  the  registrant's  knowledge,  in definitive proxy or information statements
incorporated  by  reference  in part III of this form 10-KSB or any amendment to
this  Form  10-KSB.  [ ]

State the issuer's revenues for its most recent fiscal year:  $2,258.


<PAGE>
The aggregate market value of the voting stock held by non-affiliates of the
registrant on  December 31, 2001, computed by reference to the price at which
the stock was sold on that date: n/a.

The number of shares outstanding of the registrant's Common Stock, no par value,
as of December 31, 2001 and 2000 was 41,247,816 and 20,000,000, respectively.

Documents incorporated by reference: See Exhibits.

Transitional Small Business Disclosure Format (Check one):  Yes ( ) No (X).


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<PAGE>
                           AMANASU ENERGY CORPORATION
                           --------------------------
                                   FORM 10-KSB
                                TABLE OF CONTENTS


PART I                                4
  ITEM 1.   DESCRIPTION OF BUSINESS                                          4
    GENERAL                                                                  4
    BUSINESS OF THE COMPANY AND PRODUCTS                                     4
      Overview and History                                                   4
    MARKETING                                                                7
    PATENTS, TRADEMARKS, LICENCES, FRANCHISES, CONCESSIONS, ROYALTY
    AGREEMENTS, LABOR CONTRACTS, INCLUDING DURATION                          8
    RISK FACTORS                                                             8
    GOVERNMENT REGULATIONS                                                  10
    DEPENDENCE ON CERTAIN CUSTOMERS                                         11
    RESEARCH AND DEVELOPMENT                                                11
    COSTS AND EFFECTS OF COMPLIANCE WITH ENVIRONMENTAL LAWS                 11
    NUMBER OF TOTAL EMPLOYEES AND NUMBER OF FULL-TIME EMPLOYEES             11
  ITEM 2.   DESCRIPTION OF PROPERTY                                         11
  ITEM 3.   LEGAL PROCEEDINGS                                               12
  ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS             12
PART II                            12
  ITEM 5.   MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS        12
    DIVIDEND POLICY                                                         13
    RECENT SALES OF UNREGISTERED SECURITIES                                 13
  ITEM 6:   MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS      13
    LIQUIDITY AND CAPITAL RESOURCES                                         14
  ITEM 7.   FINANCIAL STATEMENTS                                            14
  ITEM 8.   CHANGES IN AND DISAGREEEMENTS WITH ACCOUNTANTS ON ACCOUNTING
  AND FINANCIAL DISCLOSURE                                                  15
PART III                            15
  ITEM 9.   DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;
  COMPLIANCE WITH SECTION 16 (a) OF THE EXCHANGE ACT.                       15
  ITEM 10.  EXECUTIVE COMPENSATION                                          16
  ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT  17
  ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS                  18
  ITEM 13(a). EXHIBITS.                                                     19
  ITEM 13(b). REPORTS ON FORM 8-K.                                          19
SIGNATURES                          20


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<PAGE>
THIS  ANNUAL  REPORT  ON  FORM  10-KSB,  INCLUDING  EXHIBITS  THERETO,  CONTAINS
FORWARD-LOOKING  STATEMENTS  WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES
ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934,
AS  AMENDED.  THESE  FORWARD-LOOKING  STATEMENTS ARE TYPICALLY IDENTIFIED BY THE
WORDS  "ANTICIPATES",  "BELIEVES",  "EXPECTS",  "INTENDS", "FORECASTS", "PLANS",
"FUTURE",  "STRATEGY",  OR WORDS OF SIMILAR MEANING. VARIOUS FACTORS COULD CAUSE
ACTUAL  RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN THE FORWARD-LOOKING
STATEMENTS,  INCLUDING THOSE DESCRIBED IN "RISK FACTORS" IN THIS FORM 10-KSB. WE
ASSUME  NO  OBLIGATION  TO  UPDATE  THESE  FORWARD-LOOKING STATEMENTS TO REFLECT
ACTUAL  RESULTS,  CHANGES IN ASSUMPTIONS, OR CHANGES IN OTHER FACTORS, EXCEPT AS
REGULATED  BY  LAW.

PART  I

ITEM 1.   DESCRIPTION OF BUSINESS

GENERAL

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

On  June  8,  2000, we 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 an exclusive licensing agreement with the inventor of the
technology  for  a  period  of  30  years.  The  combustion system is a low cost
methodology of generating extremely high temperatures in excess of 2,000 degrees
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.  We will require
further  financing  to  advance  our  business  model.

Our  principal  offices are located at 701 Fifth Avenue, 36th Floor, Seattle, WA
98109.  Our telephone number is (206) 262-8188 and our facsimile number is (206)
262-8199.  We  do  not  have  a  website.

BUSINESS  OF  THE  COMPANY  AND  PRODUCTS

Overview  and  History

We  have 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  combustion system is a low cost
methodology of generating extremely high temperatures in excess of 2,000 degrees
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.  We will require
further  financing  to  advance  our  business  model.


                                        4
<PAGE>
Background  of  Technology.

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 of generating extremely
high  temperatures  is  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  vented out of the system. The process produces no
toxins,  smoke,  ash,  or  soot.

Mr.  Masaichi  Kikuchi,  the  inventor of the technology and a consultant to the
Company,  constructed  the  first  and only Amanasu furnace in 1996. The unit is
located on the island of Hokkaido, Japan, and has been operating since 1996 at a
capacity  of  five  tons  per  day.


Description  of  the  Amanasu  Furnace.

The  Amanasu  furnace  is  a  waste  disposal system that safely and efficiently
disposes  of  toxic  and hazardous wastes in a cost efficient manner. The system
has  three  general  features;  the  proprietary  combustion burner, the furnace
compartment,  and  the  gas  processing  compartment.

The  proprietary  aspect  of the Amanasu furnace is the unique combustion system
that  generates  abnormally high temperatures in excess of 2,000 degrees Celsius
within  the  furnace compartment. A proprietary formula of low cost metals, such
as  powered  aluminum and iron, is combined with an air pressurized, hydrocarbon
flame creating a superheated hydrogen combustion flame. A spray nozzle or burner
injects  the  flame  into  the furnace compartment where the flame is irradiated
with  microwaves  to  create  an  ionized  flame  reaching  a  heat  conversion
temperature  of  18,000  C but an actual measured temperature of 2 1,800-2,300 C
inside  the  furnace compartment. By contrast, an ordinary burner, neutral flame
reaches  temperatures  between 800 to 1,600 C. In order to raise the temperature
to  the  1,800  to  2,300 degrees C range, large amounts of additional energy is
required,  typically,  electricity.  The cost of this energy source is expensive
and  would  be  cost  prohibitive to the operation of the furnace. The Company's
proprietary  system reaches these temperatures using approximately 20 gallons of
kerosene  or light oil per hour for each one ton of daily capacity. For example,
a  five  ton  daily capacity unit requires five times as much hydrocarbon use or
100  gallons,  per hour. The furnace reaches maximum temperatures within four to
five  hours after flame ignition. The resultant effect is a low cost methodology
of generating extremely high temperatures within a confined furnace compartment.

The  inner  walls of furnace and the combustion burner itself are protected from
the extreme heat by magnetrons and tokomak. Magnetrons are circular magnets that
deflect  the  gaseous  ions from the furnace walls to the center of the furnace.
Tokomak  is an insulating material that further protects the furnaces walls from
the  extreme  heat. Waste matter enters a feed dump where a conveyor or overhead
grapple continuously feeds the waste to the furnace compartment. Once inside the
high temperature furnace compartment, the chemical compounds of waste matter are
instantly  ionize  or disintegrated into gaseous matter and a magna-like liquid.
The  magna-like liquid is water cooled to form a dense, inert carbon matter. The


                                        5
<PAGE>
combustion gases resulting from the ionization first receive a light irradiation
process  to  prevent  recombination.  A primary high speed water dousing process
follows  whereby  the gas is cooled to 1,300 C. A series of two to four reaction
tanks,  similar to water shower units, further cool the gases, and sulfuric acid
and  nitric acid are removed through processing. Finally, the cooled gas, in the
form  of  oxygen, is filtered and vented from the system as warm air at below 60
degrees C. The process is unlike conventional waste incinerators, as it produces
no  toxins,  smoke, ash, or soot. The vented oxygen has dioxin levels below 0.01
nanogram  and  dibenzoflan  levels below 0.001 nanogram. The inert carbon matter
produced in the form of pellets is no more than 2% of the original mass, and can
be  used  for  roadway  surfaces  or  disposed  of  in  landfills.

Furnaces  will be sold in daily disposal capacities of; one-half ton to one ton,
two  tons  to  five  tons,  and  greater  than  five  tons.

Units  with  daily  capacities of one-half ton to one ton will be priced between
$200,000 to $800,000. These units will measure approximately up to seven feet in
length,  four  feet  in  width,  and  eight  feet  in height. These units can be
manufactured  as  stationary  or  portable.  Portable  units can be mounted on a
portable chassis, which can be hauled by a mid-sized truck to desired locations.

Units  with  daily  capacities  of  two  to  five  tons  will  be priced between
$1,200,000  to  $2,000,000. These stationary units will measure approximately up
to  fourteen  feet  in  length,  five  feet  in width, and eight feet in height.

Units  with  daily  capacities  of  greater  than five ton, including plants for
municipalities,  will  require specific plant design based upon the requirements
of  each user. The pricing and size of each unit will be subject to the specific
design  and  user  requirements.

The  outer  housing  of  the Amanasu furnace is constructed of fabricated steel.
Ancillary  equipment, other than as described above, includes feed hoppers, pipe
conveyors,  fuel polarization equipment, air polarization equipment, turbo fans,
and  an  air compression system for the burner. The Company believes the furnace
will  have  an estimated useful life of approximately 15 years. This estimate is
based  upon  the  Hokkaido,  Japan  unit  that  has  been  operating since 1996.

COMPETITION

Generally,  the  waste disposal industry is highly competitive. This industry is
populated  by  many  national  or  international  companies,  with significantly
greater resources than that of the Company. Many of these competitors dispose of
toxic waste in tradition methods such as landfills, and incinerator use. Despite
the  fact  that  these  methods  may  not  be environmentally friendly, they are
nonetheless  in  compliance with governing regulations, and therefore, represent
significant  competition  to  the Company. In addition, competition will include
other  waste  disposal  systems  that  handle toxic and environmental waste in a
non-pollutant  manner.  Despite  this  competition,  the  Company  believes  it
maintains  certain  competitive  advantages  in  its  market. In particular, the
Company  believes  that  its  system disposes of toxic and hazardous waste in an
environmentally  safe  and  cost  effective  manner.  Consequently,  the Company
believes  due  to  its  competitive  advantages,  it will be able to effectively
compete  in  this  market.


                                        6
<PAGE>
Manufacturing  And  Suppliers.

The proprietary combustion system of the Amanasu furnace will be manufactured by
the  inventor at his factory located on the island of Hokkaido, Japan. All other
components  of  the  furnace will be manufactured or supplied by various vendors
located in the Hokkaido area in collaboration with the Company. The Company also
will  subcontract  the  assembly  and  production of the furnaces to one or more
manufacturing  companies  in  the  Hokkaido area. It believes these arrangements
will  be  sufficient  to meet the Company's production needs for the foreseeable
future.  While  the  Company  may maintain single sources for the manufacture or
supply of various components, other than the combustion system, it believes that
other  sources  for such components are available if necessary. The Company will
rely  solely upon the inventor for the manufacture of the proprietary combustion
system,  however,  the  Company  has  the  technical know how to manufacture the
combustion  system,  if  necessary.

MARKETING

Markets and Marketing.

Hazardous  and  toxic  waste  generally consists of a large number of chemicals,
metals,  pesticides,  biological agents, toxic pollutants, and other substances.
The  treatment  of  toxic and hazardous waste worldwide is a growing and diverse
industry.  Significant  legislation  and regulation worldwide has contributed to
the  growth  of  this industry. These regulations are directed at protecting the
environment  by requiring originating parties to be responsible for managing the
hazardous  wastes that they generate. Although the Company's proprietary furnace
disposes of various forms of waste, the Company will seek to promote its product
as  a  toxic and hazardous waste disposal system. This position is premised upon
the higher disposal fees for hazardous and toxic compared with the disposal fees
of  non-toxic  or  hazardous  waste.

The  Company's  strategic  focus  for  the  next  12  months  is  to  market its
proprietary furnace directly to end users in the Pacific Rim, principally Japan,
Korea,  and  Taiwan.  The  Company  believes  that  these  principal markets are
attractive  because  of  the  limited landfill space available in these markets.
Potential  end  users  include local municipalities, hospitals, power companies,
and  manufacturers  of  electronic  products, among other prospective users. The
Company  believes  that  it  will  be  able  to leverage upon the unit currently
operating  on the island of Hokkaido, Japan, as well as business contacts of the
Company's president to commercially sell its product. During the next 12 months,
the  Company intends to augment the marketing efforts of the Company's president
with assistance from an internal marketing team of three persons. This marketing
effort  will  concentrate on business contacts of the Company's president in the
Pacific  Rim  that  have  a  need  for  hazardous waste disposal. As part of its
initial marketing effort, the Company will invite prospective customers to visit
the  Hokkaido  facility  to  demonstrate  the  usefulness  of  the  facility.

During  the  second  quarter of 2001, the Company's has initiated contact with a
number  of  municipalities and private corporations for purposes of commercially
selling  its  proprietary  furnace.  At  the  end  of  June 2001, the Company in
collaboration with Mr. Kikuchi, the inventor, will be conducting a demonstration
at  the  Hokkaido facility to approximately 350 prospective customers from Japan
and  other  Pacific  Rim countries. The Company cannot predict whether any sales
will  result  from  the demonstration or the efforts of the Company's president.

Following this initial 12 month period, the Company expects to establish of a
network of distributors throughout the Pacific Rim. It is contemplated that


                                        7
<PAGE>
distributors will be granted exclusive distribution rights to a designated
territory and will be compensated based on a negotiated percentage of sales. It
is expected that distributors will be required to reach minimum sales levels in
order maintain exclusive territorial distribution rights.

PATENTS,  TRADEMARKS,  LICENCES,  FRANCHISES,  CONCESSIONS,  ROYALTY AGREEMENTS,
LABOR  CONTRACTS,  INCLUDING  DURATION

Pursuant  to  the  license agreement with the inventor, Mr. Kikuchi, the Company
obtained  the world-wide rights to the Amanasu furnace for a period of 30 years.
The  Company  considers  its  waste  treatment  technologies  and  know-how 5 as
proprietary  and  will  use  a  combination  of  trade  secrets,  non disclosure
agreements,  license  agreements,  and  patent  laws  to protect its proprietary
rights.  In  1996,  Mr.  Kikuchi,  the inventor and a consultant to the Company,
received a patent in Japan for the combustion technology, which expires in 2016.
The  Company  anticipates  that  it  will  file  for  patent protection in other
countries  prior  to  any  marketing  efforts  in  such  country.

RISK  FACTORS

You  should  carefully consider the following risks and the other information in
this Report and our other filings with the SEC before you decide to invest in us
or  to  maintain  or  increase  your  investment.

The  risks  and  uncertainties  described below are not the only ones facing us.
Additional  risks  and  uncertainties  may  also adversely impact and impair our
business. If any of the following risks actually occur, our business, results of
operations,  or  financial  condition  would  likely  suffer.  In such case, the
trading price of our common stock could decline, and you may lose all or part of
your  investment.

Developmental Stage Company.  We were incorporated on February 22, 1999.  We are
a development stage company.  In a development stage company, management devotes
most  of  its  activities  to  establishing  a  new  business. Planned principal
activities  have  not  yet  produced  significant  revenues and we have suffered
recurring  operating  losses  as  is  normal  in development stage companiesOur
ability  to  emerge  from  the  development  stage  with  respect to our planned
principal  business  activity  is dependent upon our successful efforts to raise
additional  equity  financing,  receive  funding from affiliates and controlling
shareholders,  and  develop  a  market  for  our  products.

Ability  to  develop  product.  We  have  no  assurance  at  this  time  that  a
commercially  feasible  design will ever be perfected, or if it is, that it will
become  profitable.  Our profitability and survival will depend upon our ability
to  develop  a  technically  and  commercially  feasible  product  which will be
accepted  by  end  users.  Our  products  which  we  are  developing  must  be
technologically  superior  or  at  least  equal  to  other similar products that
competitors  offer  and  must  have  a  competitive  price/performance  ratio to
adequately  penetrate  its potential markets. If we are not able to achieve this
condition  or  if  we  do  not  remain  technologically  competitive,  we may be
unprofitable  and our investors could lose their entire investment. There can be
no assurance that we or potential licensees will be able to achieve and maintain
end  user  acceptance.

Need  for  Additional  Capital.  We rely on our ability to raise capital through
the  sale  of  our  securities.  Our  the  ultimate success will depend upon our
ability  to  raise additional capital or to have other parties bear a portion of
the  required  costs  to further develop or exploit the potential market for our
products.


                                        8
<PAGE>
Dependence  on  Consultants  and  Outside  Manufacturing  Facilities.  Since our
present  plans  do  not  provide  for  a  significant  technical  staff  or  the
establishment  of  manufacturing  facilities,  we will be primarily dependent on
others  to  perform  these  functions and to provide the requisite expertise and
quality  control.  There  is no assurance that such persons or institutions will
be available when needed at affordable prices.  It will likely cost more to have
independent  companies do research and manufacturing than for us to handle these
resources.

Product/Market  Acceptance.  Our profitability and survival will depend upon our
ability to develop a technically and commercially feasible product which will be
accepted by end users.  Our furnace must be technologically superior or at least
equal  to other waste disposal furnaces which our competitors may offer and must
have a competitive price/performance ratio to adequately penetrate our potential
markets.  If  we  are  not able to achieve this condition or if we do not remain
technologically competitive, we may be unprofitable and our investors could lose
their  entire  investment.  There  can  be no assurance that we or our potential
licensees  will  be  able  to  achieve  and  maintain end user acceptance of our
furnace.

Competition.  Generally, the waste disposal industry is highly competitive. This
industry  is  populated  by  many  national  or  international  companies,  with
significantly  greater  resources  than  that  of  the  Company.  Many  of these
competitors  dispose  of toxic waste in tradition methods such as landfills, and
incinerator  use. Despite the fact that these methods may not be environmentally
friendly,  they  are  nonetheless  in compliance with governing regulations, and
therefore,  represent  significant  competition  to  the  Company.  In addition,
competition  will  include  other  waste  disposal systems that handle toxic and
environmental  waste  in  a  non-pollutant manner. There is no assurance that we
will  be  successful in meeting or overcoming our current or future competition.

Protection  of Intellectual Property.  Our business depends on the protection of
our  intellectual property and may suffer if we are unable to adequately protect
our intellectual property. Currently, we have been granted a patent in Japan for
the  combustion  technology,  which expires in 2016. We cannot provide assurance
that  our  patents will not be invalidated, circumvented or challenged, that the
rights granted under the patents will give us competitive advantages or that our
patent  applications  will  be  granted.

History  of  Losses.  We  have a history of operating losses, and an accumulated
deficit,  as of December 31, 2001, of $278,526. Our ability to generate revenues
                                       -------
and profits is subject to the risks and uncertainties encountered by development
stage  companies.

Our  future  revenues  and profitability are unpredictable. We currently have no
signed  contracts that will produce revenue and we do not have an estimate as to
when  we  will  be  entering into such contracts. Furthermore, we cannot provide
assurance  that  management  will  be  successful in negotiating such contracts.

Rapid  Technological Changes could Adversely Affect Our Business. The market for
our  furnaces is characterized by rapidly changing technology, evolving industry
standards  and changing customer demands. Accordingly, if we are unable to adapt
to  rapidly  changing technologies and to adapt our product to evolving industry
standards,  our  business  will  be  adversely  affected.

Management  and  Conflicts of Interest.  Our present officers and directors have
other  unrelated full-time positions or part-time employment.  Some officers and


                                        9
<PAGE>
directors  will  be  available  to  participate  in  management  decisions  on a
part-time  or  as-needed  basis  only.  Our  management may devote time to other
companies  or  projects  which  may  compete  directly  or  indirectly  with us.

Need  for  Additional  Key  Personnel.  At  the  present, we employ no full time
employees.  Our  success  will  depend, in part, upon the ability to attract and
retain  qualified  employees.  We  believe  that  we  will  be  able  to attract
competent employees, but no assurance can be given that we will be successful in
this regard.  If we are unable to engage and retain the necessary personnel, our
business  would  be  materially  and  adversely  affected.

Indemnification  of  Officers  and  Directors  for  Securities Liabilities.  The
Company's  By-Laws  eliminates  personal liability in accordance with the Nevada
Revised  Statutes.  Section  78.7502  of the NRS provides that a corporation may
eliminate personal liability of an officer or director to the corporation or its
stockholders  for  breach  of  fiduciary duty as an officer or director provided
that  such indemnification is limited if such party acted in good faith and in a
manner which he reasonably believed to be in or not opposed to the best interest
of  the  corporation.

In  so  far  as indemnification for liability arising from the Securities Act of
1933 may be permitted to Directors, Officers or persons controlling the Company,
it  has  been  informed  that  in  the  opinion  of  the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Act
and  is,  therefore,  unenforceable.


General  Factors.  Our  areas  of  business may be affected from time to time by
such  matters  as  changes  in  general economic conditions, changes in laws and
regulations,  taxes,  tax laws, prices and costs, and other factors of a general
nature  which  may  have  an  adverse  effect  on  our  business.

No  Public  Market  for the Common Stock.  At present, there is no public market
for the  Common Stock and there is no assurance that the Company will proceed to
trade  in  a  public  forum,  or,  if  the shares become public, that it will be
sustained.

Estimates  and  Financial  Statements.  The  information  in  this  Form  10-KSB
consists  of  and relies upon evaluation and estimates made by management.  Even
though  management  believes  in  good faith that such estimates are reasonable,
based  upon  market  studies  and  data provided by sources knowledgeable in the
field, there can be no assurance that such estimates will ultimately be found to
be  accurate  or  even  based  upon  accurate  evaluations.

No Foreseeable Dividends.  We have not paid dividends on our Common Stock and do
not  anticipate  paying dividends on our Common Stock in the foreseeable future.

GOVERNMENT  REGULATIONS

Generally,  the  Company  will  be  required to receive regulatory approval from
various  governmental  agencies  to  conduct  its  operations.  These regulatory
approvals  will  require  the Company to obtain and retain numerous governmental
permits  to  conduct  various  aspects  of  its  operations, any of which may be
subject  to  revocation,  modification  or  denial.  Extensive  and  evolving
environmental protection laws and regulations have been adopted worldwide during
recent decades in response to public concern over the environment. The Company's
operations  and those of its future customers are subject to these evolving laws


                                       10
<PAGE>
and  regulations.  The requirements of these laws and regulations 4 could impose
substantial  potential  liabilities  to  the  Company  and its customers. If the
operations of the Company's furnace result in a toxic spill or other mishap, the
Company  and  its customers could be subject to substantial fines, suspension of
operation, or other significant penalties. The Company makes a continuing effort
to  anticipate  regulatory,  political,  and legal developments in its principal
markets  in  the  Pacific  Rim  that  might affect its operations, but it is not
always  able  to  do  so.  The  Company  cannot  predict the extent to which any
legislation or regulation that may be enacted, amended, repealed, reinterpreted,
or  enforced  in  the  future  may  affect  its  operations.  Such actions could
adversely  affect  the  Company's  operations  or  impact  its  future financial
condition  or  earnings.  The  Company  however does expect that its proprietary
furnace  will  comply  with all governing regulations in those countries that it
intends  to  sell  its  product.  This  premise  is based upon the fact that the
furnace  is  not  an  incinerator  and  produces no toxins, smoke, ash, or soot.
Moreover,  the  Hokkaido  facility  received  a  permit  from  a division of the
Japanese  Ministry  of  Labor  in 1996 and since that time has been operating in
compliance  with  the  governing  laws  and  regulations  without  incident.

DEPENDENCE  ON  CERTAIN  CUSTOMERS

Although  we  have  no  key customers at the present time, we expect that if our
development  work  is  successful,  we  will  likely  become dependent, at least
initially, upon one or very few key customers. Such dependence could prove to be
risky in the event that one or more such potential customers were to be lost and
not  replaced.

RESEARCH  AND  DEVELOPMENT

We  plan  to  contract  with  outside individuals, institutions and companies to
perform  any  additional  research  and  development  work which we may require.

During  the last two fiscal years, we spent $44,000 on research and development.

COSTS  AND  EFFECTS  OF  COMPLIANCE  WITH  ENVIRONMENTAL  LAWS

At  the present time there is no direct financial or competitive effect upon our
business  as  a  result  of  any need to comply with any federal, state or local
provisions  which  have  been  enacted  or  adopted  regulating the discharge of
materials  into  the environment, or otherwise relating to the protection of the
environment.

NUMBER  OF  TOTAL  EMPLOYEES  AND  NUMBER  OF  FULL-TIME  EMPLOYEES

As  of  December  31,  2001,  the  Company's officers are its only employees. In
addition,  the Company has entered into a consulting agreement with Mr. Kikuchi,
the  inventor  of  the  technology.  The  Company  has  no collective bargaining
agreements  with its employees and believes its relations with its employees are
good.

ITEM 2.   DESCRIPTION OF PROPERTY

We  own  no properties. The Company's executive offices are located at 701 Fifth
Avenue,  36th  Floor,  Seattle, WA 98109. The premises are 1,500 square feet and
are  subleased  from  the  Company's  president  on  a month to month basis at a
monthly rental amount of $1,500. In addition, the Company maintains an office at


                                       11
<PAGE>
2-18 Kyobashi Chuo-ku, Tokyo, Japan 104-0031. The premises are 2,000 square feet
and  approximately  600  square  feet  are  subleased  by  the  Company from its
president  rent  free  on  a  month  to  month  basis.

ITEM 3.   LEGAL PROCEEDINGS

We are not a party to any legal proceedings or litigation, nor are we aware that
any  litigation  is presently being threatened or contemplated against us or any
officer,  director  or  affiliate.

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There  was  no  matter  submitted  to  a vote by our security holders during the
fourth  quarter  of  our  fiscal  year  ended  December  31,  2001,  through the
solicitation  of  proxies  or  otherwise.

PART  II

ITEM 5.   MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

There  is  no  public  market  for  our  Common  Stock.

The  following  table  will  identify,  as  of December 31, 2001, the number and
percentage  of  outstanding  shares  of common stock of the Company owned by (i)
each  person  known  to  the  Company  who  owns  more  than five percent of the
outstanding common stock, (ii) each officer and director, and (iii) and officers
and directors of the Company as a group. The following information is based upon
40,000,000  shares  of  common  stock  of  the  Company  which  are  issued  and
outstanding  as  of  December 31, 2001. The address for each individual below is
701  Fifth  Avenue,  36th  Floor, Seattle, WA 98109, the address of the Company.

<TABLE>
<CAPTION>
-----------------  -----------------------  ---------------------  -----------------
Title of Security    Name and Address of    Amount and Nature of   Percent of Class
                     Beneficial Owner       Beneficial Ownership
                                            (1)
-----------------  -----------------------  ---------------------  -----------------
<S>                <C>                      <C>                    <C>
Common Stock       Family Corporation(2)              33,000,000                 80%
                   #902 Ark Towers, 1-3-
                   40
                   Roppongi, Minatoku
                   Tokyo, Japan
-----------------  -----------------------  ---------------------  -----------------
Common Stock       Atsushi Maki(3)(4)                  2,496,000                  6%
-----------------  -----------------------  ---------------------  -----------------
Common Stock       Lina Lei(4)                           362,500                  1%
-----------------  -----------------------  ---------------------  -----------------
                   Officers and Directors             35,858,500                 87%
                   as a Group (2 persons)
-----------------  -----------------------  ---------------------  -----------------
<FN>
(1). "Beneficial ownership" means having or sharing, directly or indirectly (i)
voting power, which includes the power to vote or to direct the voting, or (ii)
investment power, which includes the power to dispose or to direct the disposition,
of shares of the common stock of an issuer. The definition of beneficial ownership
includes shares underlying options or warrants to purchase common stock, or other
securities convertible into common stock, that currently are exercisable or
convertible or that will become exercisable or convertible within 60 days. Unless
otherwise indicated, the beneficial owner has sole voting and investment power.

(2). Mr. Atsushi Maki, the Company's Chairman and President, is the sole shareholder
of Family Corporation and is deemed the beneficial owner of such shares.


                                       12
<PAGE>
(3). Includes 2, 570,000 shares of common stock held individually by Mr. Maki and
33,000,000 shares of common stock held by Family Corporation.

(4). Atsushi Maki and Lina Lei are husband and wife. Each spouse disclaims
beneficial ownership of the shares of the other spouse.
</TABLE>

DIVIDEND  POLICY

To  date we have not paid any dividends on our Common Stock and do not expect to
declare  or  pay  any  dividends  on our Common Stock in the foreseeable future.
Payment  of  any  dividends  will be dependent upon future earnings, if any, our
financial  condition,  and  other  factors  as  deemed  relevant by our Board of
Directors.

RECENT  SALES  OF  UNREGISTERED  SECURITIES

Set  forth  below  is  information  regarding  the  issuance  and  sales  of our
securities  without  registration  during  the  last fiscal year.  No such sales
involved  the  use  of  an  underwriter.  See  Note  2  to our audited financial
statements  for  the fiscal year ended December 31, 2001 for more information on
recent  sales  of  unregistered  securities.

ITEM 6:   MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

The  following  discussion  should  be  read  in  conjunction with the Company's
Financial  Statements,  including the Notes thereto, appearing elsewhere in this
Annual  Report.

Company  Overview
-----------------

The  Company  was organized February 22, 1999.  Its operations to date have been
limited  to  obtaining  the  license  to  the technology, conducting preliminary
marketing  efforts,  and  conducting  preliminary  testing  of  the  equipment.

Plan  Of  Operations
--------------------

The  Company  is  a  development  stage  corporation.  It  has not commenced its
planned  operations  of  manufacturing  and  selling a toxic and hazardous waste
disposal  system.

During the year 2001, the Company raised $274,540 through the issuance of common
stock,  $200,000  of  which  was  the result of the exercise of 20,000,000 stock
purchase  options  by  the  Company's  president and principal shareholder.  The
Company  intends  to  raise  additional  funds  of  approximately  $2,000,000 to
$3,000,000 in the near future through the private placement of its common stock.
The  proceeds  of  such  private  placements  will  be  used  to  construct  two
demonstrational  units,  a  one-half ton daily capacity unit and a one ton daily
capacity  unit,  to  fully  launch  the  marketing  and  sale  of  its  licensed
proprietary  Amanasu  furnace, and for other general working capital needs.  The
Company's activities over the next twelve months will be entirely devoted to the
construction  of  a  limited  number  of  demonstrational units, the hiring of a
limited  staff  to  conduct  its  business,  and  the  commencement of marketing
activities.  The  Company  has entered into discussions with a number of private
investors  concerning  the private placement of its common stock.  At this time,


                                       13
<PAGE>
however,  it has not received commitments from any source.  Although the Company
is  encouraged  by  its  discussions,  it  cannot  predict  whether  it  will be
successful  in  raising  capital,  which  capital  is  essential  to its plan of
operations.

The  Company  expects to outsource the construction and fabrication of its units
to  third  parties,  including  the  proprietary combustion system which will be
manufactured  by  the inventor of the furnace at his factory in Hokkaido, Japan.
The  Company  expects  the  production  cycle  of its product to be three to six
months.  The  Company  believes  that it can manufacture as many as thirty units
per  month using currently available manufacturing and assembly resources and it
believes  the  production  and  assembly  resources of the third parties will be
sufficient  to meet anticipated product demand of the next twelve months.  Tests
are  now  being  conducted  of  the  furnace  at  a California facility which is
expected  to  be  a  primary  source  of manufacturing capability.  Testing will
continue  through  the first half of the year 2002 and manufacturing is expected
to  begin  in  the  second  half  of  the  year.

The  Company  will  require  a  minimum  of  $1,000,000  to  satisfy  its  cash
requirements of the next twelve months.  If the Company is successful in raising
this  money,  it  will  commence  production  and  marketing  of  its  units  to
prospective  customers  in  the  Pacific  Rim.  If  the Company in successful in
raising  the  projected  $2,000,000  to  $3,000.000  from sales of common stock,
management  believes that this funding, along with bank borrowings and cash flow
from  the  sales  of  units,  will enable the Company to commence the full scale
manufacture  and  sale  of  its product.  The Company can not predict whether it
will  be  successful  in  its  capital  raising  efforts.  If the Company is not
successful  in  raising  $1,000,000,  it may not be able to complete its plan of
operations.

The  results  of  operations  during  the  year  2001  were a loss of  $224,737,
compared with a loss of $51,086 for the year 2000.  This significant increase in
loss  is the result of spending approximately $115,000 to register the Company's
stock  with  the  Securities and Exchange Commission and $44,000 for preliminary
testing  of  the  equipment.  Spending  of an additional $166,000 for testing is
projected during the first half of 2002.  Following that work, manufacturing and
sales  are  expected  to  begin.  In  addition,  the Company executed leases for
warehouse  and  office  space  and  an apartment in the Seattle, Washington area
during  2001,  incurring  rent  cost  of  $22,220.

LIQUIDITY  AND  CAPITAL  RESOURCES

During  2001,  we  financed  our  operations  mainly  through  the  issuance  of
20,047,816  shares  of  common  stock,  which  yielded  proceeds  of  $274,540.
The  loss  for the year of $224,737 included $16,211 of non-cash items all of it
for  stock  based  compensation.

As  at  December  31,  2001,  we  had  a  cash  balance  of $35,287, and current
liabilities  of  $100.

ITEM 7.   FINANCIAL STATEMENTS

Our  consolidated  financial  statements  are  included  and  begin  immediately
following  the  signature  page  to  this report.  See Item 13 for a list of the
financial  statements  and  financial  statement  schedules  included.


                                       14
<PAGE>
ITEM 8.   CHANGES IN AND DISAGREEEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE

None.

PART  III

ITEM 9.   DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;
COMPLIANCE WITH SECTION 16 (a) OF THE EXCHANGE ACT.

Directors  and  Executive  Officers  of  the  Registrant

The  following  table  sets  forth  the  name,  age  and position of each of our
Executive  Officers  and  Directors:

<TABLE>
<CAPTION>
Name                 Age  Position
<S>                  <C>  <C>
Atsushi Maki          55  Chairman, President, Treasurer and Director
Lina Lei              42  Secretary and Director
Keichi Komiya         70  Director
Takahashi Yamaguchi   67  Director
Charlie Lan           43  Director
</TABLE>

BUSINESS  EXPERIENCE  AND  PRINCIPAL OCCUPATION OF DIRECTORS, EXECUTIVE OFFICERS
AND  SIGNIFICANT  EMPLOYEES

Atsushi Maki has been the President, Treasurer and Chairman of the Company since
November  10,  1999.  All  officers  currently  devote part-time services to our
operation.

Mr.  Maki and Ms. Lei are husband and wife.  Other than that relationship, there
are  no  family  relationships between any director or executive officer and any
other  director  or  executive  officer.

The  present  and  principal occupations of our directors and executive officers
during  the  last  five  years  are  set  forth  below:

Atsushi Maki has been the President, Treasurer and Chairman of the Company since
November  10,  1999. During the past ten years, Mr. Maki has been an independent
businessman  involved  mainly  in  real estate development projects in Japan. In
1995,  he  served  as  a Director of the Japan-Korea Cooperation Committee along
with  the  former  Prime  Minister  of  Japan  who  acted as the Chairman of the
committee.  In  1999,  he  was  responsible  for  establishing  the  Japan-China
Association,  a  foundation  for  fostering  better  relations  between  the two
nations.  He served as a director of the association, along with the Chairman of
Sony Corporation and the Honorary Chairman of Toyota Motor Corporation. Mr. Maki
is  the  husband  of  Lina  Lei,  the  Secretary  and a director of the Company.

Lina  Lei  has been the Secretary and Director of the Company since November 10,
1999.  From  May  1990 to November 1999, Ms. Lei was employed by Thunder Company
Ltd, Tokyo, Japan, in various capacities including as its managing director. Ms.
Lei  completed her university studies in Shanghai, China in 1982, and obtained a


                                       15
<PAGE>
master's  degree  from  Hitotsubashi University in Tokyo in 1990. Ms. Lei is the
wife  of  Atsushi Maki, the Chairman and President of the Company. Section 16(a)
Beneficial  Ownership  Reporting  Compliance

Based  solely  upon  a  review  of Forms 3, 4 and 5 furnished to us, none of our
officers,  directors or beneficial owners of more than ten percent of the Common
Stock  failed  to file on a timely basis reports required to be filed by Section
16(a)  of  the  Exchange  Act  during  the  most  recent  fiscal  year.

ITEM 10.  EXECUTIVE COMPENSATION

No executive officer had an annual salary and bonus in excess of $100,000 during
the  past  fiscal  year.

<TABLE>
<CAPTION>
                                        Annual Compensation                      Long-Term Compensation
                                   ------------------------------  -------------------------------------------------------
                                                                              Awards                      Payouts
Name and Principal           Year                                  ------------------------------  -----------------------
Position                                                                              Securities
                                   Salary   Bonus   Other Annual   Restricted Stock   Under-       LTIP (2)  All Other
                                   ($)(3)   ($)     Compensation   Award(s)           lying        Payout    Compensation
                                                    ($)            (#)                Options/     ($)       ($)
                                                                                      SARs
                                                                                      (1)(#)
                             ----  -------  ------  -------------  -----------------  -----------  --------  -------------
<S>                          <C>   <C>      <C>     <C>            <C>                <C>          <C>       <C>

Atsushi Maki,                2001  14,769   Nil     Nil            Nil                Nil          Nil       Nil
President and CEO            2000  14,769   Nil     Nil            Nil                Nil          Nil       Nil
                             1999   2,462   Nil     Nil            Nil                Nil          Nil       Nil
                             ----  -------  ------  -------------  -----------------  -----------  --------  -------------
<FN>
(1)  "SARS"  or  "stock  appreciation  right"  means  a  right granted by US, as
     compensation  for  services  rendered,  to  receive a payment of cash or an
     issue  or  transfer of securities based wholly or in part on changes in the
     trading  price  of  our  publicly  traded  securities.

(2)  "LTIP"  or  "long  term  incentive  plan"  means  any  plan  which provides
     compensation intended to serve as incentive for performance to occur over a
     period longer than one financial year, but does not include option or stock
     appreciation  right  plans  or  plans  for  compensation through restricted
     shares  or  restricted  share  units.

(3)  Mr.  Maki  received  salary compensation in the form of 3,200,000 shares of
     common  stock  of  the  Company  for  the period from November 1999 through
     fiscal 2001. The shares were valued at $0.01 per share. Of the total amount
     of  shares, 246,200  shares  were  allocated  for  fiscal  1999,  with  the
     balance  allocated  equally  between  2000  and  2001.
</TABLE>

The  Company  and its officers have agreed that the officers of the Company will
not  receive  any  other  compensation  beyond  year 2001 until such time as the
Company  reaches  profitability for a full fiscal quarter. The terms of any such
compensation  arrangement  have  not been determined at this time. Other than as
indicated above, the Company did not have any other form of compensation payable
to  its  officers  or  directors,  including  any  stock  option  plans,  stock
appreciation  rights,  or long term incentive plan awards for the periods during
the  fiscal  years  2000  and  1999.

The  Company's  directors  received no fees for their services in such capacity,
however,  they  will  be  reimbursed for expenses incurred by them in connection
with  the  Company's  business.


                                       16
<PAGE>
We  may  in the future create retirement, pension, profit sharing, insurance and
medical  reimbursement plans covering our Officers and Directors. At the present
time,  no such plans exist. No advances have been made or are contemplated by us
to any of our Officers or Directors. Directors receive no compensation for their
service  as  such.  Compensation  of officers and directors is determined by our
Board  of  Directors  and  is  not  subject  to  shareholder  approval.

The  following  table  sets  forth  certain  information with respect to options
exercised  during the fiscal year ended December 31, 2001 by our Chief Executive
Officer,  and  with  respect  to unexercised options held by our Chief Executive
Officer  at  the  end  of  fiscal  2001.

AGGREGATED  OPTION  EXERCISES  IN  LAST  FISCAL  YEAR AND YEAR END OPTION VALUES

<TABLE>
<CAPTION>
                                                             Number of
                                                            Unexercised        Value of
                                                            Options at        Unexercised
                                                             Years End    Options at Year End

                    Shares Acquired                        Exercisable /     Exercisable /
Name                On Exercise (#)   Value realized ($)   Unexercisable     Unexercisable
------------------  ----------------  -------------------  -------------  -------------------
<S>                 <C>               <C>                  <C>            <C>
Family Corporation        20,000,000  $           200,000            -0-                  -0-
------------------  ----------------  -------------------  -------------  -------------------
</TABLE>

We  do  not  have  any  Long  Term  Incentive  Plans.

We do not have any employment contracts, termination of employment and change of
control  arrangements.

ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The  following  table  sets  forth, as of March 31, 2001, our outstanding Common
Stock owned of record or beneficially by each person who owned of record, or was
known  by us to own beneficially, more than 5% of our Common Stock, and the name
and  shareholdings  of  each  Executive  Officer  and Director and all Executive
Officers and Directors as a group. A person is deemed to be the beneficial owner
of  securities  that can be acquired by such person within 60 days from the date
of this report upon the exercise of warrants or options. Each beneficial owner's
percentage  ownership  is  determined  by assuming that options that are held by
such  person  and  which  are  exercisable  within  60  days  from  the date are
exercised.

<TABLE>
<CAPTION>
Name                                   Common Shares Owned (1)  Percent of
                                                                Class
-------------------------------------  -----------------------  -----------
<S>                                    <C>                      <C>

Family Corporation(2)                               33,000,000          80%
#902 Ark Towers, 1-3-40
Roppongi, Minatoku
Tokyo, Japan
-------------------------------------  -----------------------  -----------
Atsushi Maki(3)(4)                                   2,496,000           6%
-------------------------------------  -----------------------  -----------
Lina Lei(4)                                            362,500           1%
-------------------------------------  -----------------------  -----------
Officers and Directors as a Group (2                35,858,500          87%
persons)
-------------------------------------  -----------------------  -----------


                                       17
<PAGE>
<FN>
Except  as  noted below, all shares are held beneficially and of record and each
record  shareholder  has  sole  voting  and  investment  power.

(1).  "Beneficial ownership" means having or sharing, directly or indirectly (i)
voting  power, which includes the power to vote or to direct the voting, or (ii)
investment  power,  which  includes  the  power  to  dispose  or  to  direct the
disposition,  of  shares  of  the  common  stock of an issuer. The definition of
beneficial  ownership includes shares underlying options or warrants to purchase
common  stock, or other securities convertible into common stock, that currently
are  exercisable  or  convertible or that will become exercisable or convertible
within 60 days. Unless otherwise indicated, the beneficial owner has sole voting
and  investment  power.

(2).  Mr.  Atsushi  Maki,  the  Company's  Chairman  and  President, is the sole
shareholder  of  Family  Corporation  and is deemed the beneficial owner of such
shares.

(3). Includes 2,496,000 shares of common stock held individually by Mr. Maki and
33,000,000  shares  of  common  stock  held  by  Family  Corporation.

(4).  Atsushi  Maki  and  Lina  Lei  are husband and wife. Each spouse disclaims
beneficial  ownership  of  the  shares  of  the  other  spouse.
</TABLE>

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

On  December  15,  1999,  the  Company  entered  into  an  agreement with Family
Corporation,  a  Japanese  corporation, under which Family Corporation agreed to
arrange  the  grant  of a license to Amanasu Furnace to the Company. In exchange
for  obtaining  the  license  to  the Technology, the Company agreed to issue to
Family  Corporation  13,000,000  shares  of  its common stock and stock purchase
options  to  acquire  another  20,000,000  shares of common stock at a price per
share of $0.01. In addition under the terms of the agreement, the Company agreed
to issue 1,000,000 shares of common stock to the inventor of the technology, and
200,000 shares of common stock to the executive director of the inventor. In May
2001,  Family  Corporation  exercised its option to acquire 20,000,000 shares of
common  stock  of  the  Company and paid the sum of $200,000 to the Company. Mr.
Atsushi  Maki,  the  Company's Chairman and President, is the president and sole
shareholder  of  Family  Corporation.

Mr.  Maki received salary compensation in the form of 3,200,000 shares of common
stock  of the Company for the period from November 1999 through fiscal 2001. The
shares  were  valued  at $0.01 per share or a total of $32,000. Ms. Lei received
salary compensation in the form of 312,500 shares of common stock of the Company
for the period from November 1999 through fiscal 2001. The shares were valued at
$0.01  per  share  or  a  total  of  $3,125.

On June 8, 2000, the Company entered into an exclusive licensing agreement with
the inventor of the Amanasu Furnace. Under the licensing agreement, the Company
obtained the worldwide production and marketing rights of the Technology for 30
years, and the Company is required to pay the inventor a royalty of 2% on gross
sales of the Technology.


                                       18
<PAGE>
ITEM 13(a). EXHIBITS.

Number          Description
--------------------------------------------------------------------------------

3(i)(a)        Articles of Incorporation of the Company . . . . . . . . . . .(1)
3(i)(b)        Certificate of Amendment to Articles of
               Incorporation. . . . . . . . . . . . . . . . . . . . . . . . .(1)
3(ii)(a)       Amended and Restated By - Laws of the Company. . . . . . . . .(1)
10(i)          Agreement between Family Corporation and the
               Company dated December 15, 1999. . . . . . . . . . . . . . . .(1)
10(ii)         License agreement between Masaichi Kikuchi
               and the Company dated June 8, 2000 . . . . . . . . . . . . . .(1)
10(iii)        Technical Consulting Agreement the Company
               and Masaichi Kikuchi dated June 9, 2001. . . . . . . . . . . .(1)
10(iv)         License Agreement dated June 8, 2000.

(1)     Incorporated by reference from Form 10-SB Registration Statement filed
June 20, 2001.



Independent Auditor's Report. . . . . . . . . . . . . . . . . . . . . . . . .F-1
Balance Sheets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F-2
Statements of Operations. . . . . . . . . . . . . . . . . . . . . . . . . . .F-3
Statement of Stockholders' Equity . . . . . . . . . . . . . . . . . . . . . .F-4
Statements of Cash Flows. . . . . . . . . . . . . . . . . . . . . . . . . . .F-5
Notes to the Financial Statements . . . . . . . . . . . . . . . . . .F-6 to F-10


ITEM 13(b). REPORTS ON FORM 8-K.

None.


                                       19
<PAGE>
SIGNATURES

In accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934,
the Registrant has duly caused this report or amendment to be signed on its
behalf by the undersigned, thereunto duly authorized.

                                             AMANASU ENERGY CORPORATION


                                             By: /s/ Atsushi Maki
                                             --------------------
                                             Atsushi Maki, Chairman, President
                                             and Director


Dated: April 12, 2002

In accordance with the Securities Exchange Act of 1934, this report has been
signed by the following persons on behalf of the Registrant and in the
capacities and on the dates indicated below.

Signature                           Title                               Date
---------------------------  -------------------------------------  ------------

/s/ Atsushi Maki             President, Chairman                       4/12/02
---------------------------  Chief Financial Officer and Director
(Atsushi Maki)


                                       20
<PAGE>
                EXHIBIT INDEX


Number          Description                                                 Page
--------------------------------------------------------------------------------

3(i)(a)        Articles of Incorporation of the Company . . . . . . . . . . .(1)
3(i)(b)        Certificate of Amendment to Articles of
               Incorporation. . . . . . . . . . . . . . . . . . . . . . . . .(1)
3(ii)(a)       Amended and Restated By - Laws of the Company. . . . . . . . .(1)
10(i)          Agreement between Family Corporation and the
               Company dated December 15, 1999. . . . . . . . . . . . . . . .(1)
10(ii)         License agreement between Masaichi Kikuchi
               and the Company dated June 8, 2000 . . . . . . . . . . . . . .(1)
10(iii)        Technical Consulting Agreement the Company
               and Masaichi Kikuchi dated June 9, 2001. . . . . . . . . . . .(1)
10(iv)         License Agreement dated June 8, 2000.

(1)     Incorporated by reference from Form 10-SB Registration Statement filed
June 20, 2001.



Independent Auditor's Report. . . . . . . . . . . . . . . . . . . . . . . . .F-1
Balance Sheets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F-2
Statements of Operations. . . . . . . . . . . . . . . . . . . . . . . . . . .F-3
Statement of Stockholders' Equity . . . . . . . . . . . . . . . . . . . . . .F-4
Statements of Cash Flows. . . . . . . . . . . . . . . . . . . . . . . . . . .F-5
Notes to the Financial Statements . . . . . . . . . . . . . . . . . .F-6 to F-10


                                       21
<PAGE>
                          Independent Auditor's Report
                          ----------------------------


Board of Directors
Amanasu Energy Corporation

I  have audited the accompanying balance sheets of Amanasu Energy Corporation (a
development  stage  company)  as  of December 31, 2001 and 2000, and the related
statements  of  operations  and  deficit  accumulated  during development stage,
changes in stockholders' equity, and cash flows for the years ended December 31,
2001  and  2000,  and  the  period February 22, 1999 to December 31, 1999. These
financial  statements  are  the  responsibility  of  the  Company management. My
responsibility  is  to express an opinion on these financial statements based on
my  audit.

I  conducted  the audit in accordance with auditing standards generally accepted
in the United States of America. Those standards require that I plan and perform
the  audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence  supporting the amounts and disclosures in the financial statements. An
audit  also  includes  assessing  the accounting principles used and significant
estimates  made  by  management,  as  well  as  evaluating the overall financial
statement  presentation. I believe that my audit provides a reasonable basis for
my  opinion.

In my opinion, the financial statements referred to above present fairly, in all
material  respects,  the financial positions of Amanasu Energy Corporation as of
December 31, 2001 and 2000, and the results of its operations and its cash flows
for  the years ended December 31, 2001 and 2000 and the period February 22, 1999
to December 31, 1999 in conformity with accounting principles generally accepted
in  the  United  States  of  America.



ROBERT G. JEFFREY, CPA

March 29, 2002
Wayne, New Jersey


                                      F-1
<PAGE>
<TABLE>
<CAPTION>
                           AMANASU ENERGY CORPORATION
                           --------------------------
                          (A Development Stage Company)
                                 BALANCE SHEETS
                                  December 31,


ASSETS                                                     2001        2000
------                                                  ----------  ----------
<S>                                                     <C>         <C>
Current Assets:
    Cash                                                $  35,287   $       -
    Prepaid expenses                                            -      16,211
                                                        ----------  ----------

              Total current assets                         35,287      16,211

Fixed Assets:
    Automotive equipment                                   25,859           -
        Less, accumulated depreciation                      3,060           -
                                                        ----------  ----------
              Net fixed assets                             22,799           -

Other Assets:
    Rent deposit                                            8,028           -
                                                        ----------  ----------
              Total Assets                              $  66,114   $  16,211
                                                        ==========  ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------

Current liabilities:
    Shareholder advance                                 $     100   $       -

                                                        ----------  ----------
              Total liabilities                               100           -
                                                        ----------  ----------

Stockholders' Equity:
    Common stock:  authorized 100,000,000 shares
        of $.001 par value; 41,247,816 and 20,000,000,
        respectively, issued and outstanding               27,048       7,000
    Additional paid in capital                            317,492      63,000
    Deficit accumulated during development stage         (278,526)    (53,789)

                                                        ----------  ----------
              Total stockholders' equity                   66,014      16,211

                                                        ----------  ----------
      Total Liabilities and Stockholders' Equity        $  66,114   $  16,211
                                                        ==========  ==========

   The accompanying notes are an integral part of these financial statements.
</TABLE>


                                      F-2
<PAGE>
<TABLE>
<CAPTION>
                               AMANASU ENERGY CORPORATION
                               --------------------------
                              (A DEVELOPMENT STAGE COMPANY)
                          STATEMENTS OF OPERATIONS AND DEFICIT
                          ACCUMULATED DURING DEVELOPMENT STAGE

                                                                      February 22, 1999
                           Year       Year       February 22 To      (Date of Inception)
                           2001       2000      December 31, 1999    To December 31, 2001
                        ----------  ---------  -------------------  ----------------------
<S>                     <C>         <C>        <C>                  <C>
Revenue:
    Interest income     $   2,258   $      -   $                -   $               2,258

Expenses                  226,995     51,086                2,703                 280,784
                        ----------  ---------  -------------------  ----------------------

Loss accumulated
    during development
    stage               $(224,737)  $(51,086)  $           (2,703)  $            (278,526)
                        ==========  =========  ===================  ======================
Net loss per share -
    Basic and Diluted   $    (.01)  $   (.01)  $                -
                        ==========  =========  ===================

   The accompanying notes are an integral part of these financial statements.
</TABLE>


                                      F-3
<PAGE>
<TABLE>
<CAPTION>
                                             AMANASU ENERGY CORPORATION
                                             ---------------------------
                                            (A DEVELOPMENT STAGE COMPANY)
                                   STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                              FOR THE PERIODS ENDED DECEMBER 31, 2001, 2000 AND 1999

                                          Common Stock                           Deficit Accumulated
                                     -----------------------     Additional            During
                                       Shares       Amount    Paid in Capital     Development Stage      Total
                                     -----------  ----------  ----------------  ---------------------  ----------
<S>                                  <C>          <C>         <C>               <C>                    <C>

Balance February 22, 1999                     -   $       -   $              -  $                  -   $       -

Net loss for the period                                                                       (2,703)     (2,703)

                                     -----------  ----------  ----------------  ---------------------  ----------
Balance, December 31, 1999                    -           -                  -                (2,703)     (2,703)

Shares issued as fees connected
    with acquisition of
    licensing agreement              13,000,000           -                                                    -

Shares issued as compensation         3,512,500       3,512             31,613                            35,125

Shares issued for services            3,487,500       3,488             31,387                34,875

Net loss for period                                                                          (51,086)    (51,086)

                                     -----------  ----------  ----------------  ---------------------  ----------
Balance, December 31, 2000           20,000,000       7,000             63,000               (53,789)     16,211

Sales of common stock                    47,816          48             74,492                            74,540

Shares issued on exercise of option  20,000,000      20,000            180,000                           200,000

Shares issued as fees connected
    with acquisition of
    licensing agreement               1,200,000           -                  -                                 -

Net loss for period                                                                         (224,737)   (224,737)

Balance, December 31, 2001           41,247,816   $  27,048   $        317,492  $           (278,526)  $  66,014
                                     ===========  ==========  ================  =====================  ==========

                The accompanying notes are an integral part of these financial statements.
</TABLE>


                                      F-4
<PAGE>
<TABLE>
<CAPTION>
                                        AMANASU ENERGY CORPORATION
                                        --------------------------
                                       (A DEVELOPMENT STAGE COMPANY)
                                         STATEMENTS OF CASH FLOWS

                                                                                         February 22, 1999
                                              Year       Year       February 22 To      (Date of Inception)
                                              2001       2000      December 31, 1999    To December 31, 2001
                                           ----------  ---------  -------------------  ----------------------
<S>                                        <C>         <C>        <C>                  <C>

CASH FLOWS FROM OPERATIONS:
Net loss                                   $(224,737)  $(51,086)  $           (2,703)  $            (278,526)
Charges not requiring the outlay of cash:
     Depreciation                              3,060                                                   3,060
     Common stock issued for services         16,211     51,086                2,703                  70,000
                                           ----------  ---------  -------------------  ----------------------

          NET CASH PROVIDED BY
              OPERATING ACTIVITIES          (205,466)                              -                (205,466)
                                           ----------  ---------  -------------------  ----------------------

CASH FLOWS FROM INVESTING
      ACTIVITIES:
Purchase of automobile                       (25,859)         -                    -                 (25,859)
Rent deposit for warehouse lease              (8,028)         -               (8,028)
                                           ----------  ---------  -------------------

       NET CASH CONSUMED BY
          INVESTING ACTIVITIES               (33,887)         -                    -                 (33,887)
                                           ----------  ---------  -------------------  ----------------------

CASH FLOWS FROM FINANCING
      ACTIVITIES:
Issuances of common stock                    274,540          -                    -                 274,540
Advance received in anticipation of
      common stock sale                          100                                                     100
                                           ----------  ---------  -------------------  ----------------------

       NET CASH PROVIDED BY
          FINANCING ACTIVITIES               274,640                               -                 274,640
                                           ----------  ---------  -------------------  ----------------------

NET CHANGE IN CASH BALANCES                   35,287          -                    -                  35,287

Cash balance, beginning of period                  -          -                    -                       -
                                           ----------  ---------  -------------------  ----------------------
Cash balance, end of period                $  35,287   $      -   $                -   $              35,287
                                           ==========  =========  ===================  ======================

                The accompanying notes are an integral part of these financial statements.
</TABLE>


                                      F-5
<PAGE>
                           AMANASU ENERGY CORPORATION
                           --------------------------
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2001



1.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION  OF  COMPANY
The  Company  is  a  Nevada  Corporation,  formed  February  22,  1999, as Forte
International, Inc.  The name was changed to Amanasu Energy Corporation on March
27,  2001.

BUSINESS
The  Company  has  acquired  worldwide  licensing rights for nuclear incinerator
technology,  known  as  "The  Amanasu  Furnace".  The  Furnace is a positive ion
breeder incinerator process that converts domestic and industrial wastes to ions
through high temperature exposure.  The resultant residue consists of oxygen gas
and  inert  slag  pellets.

DEVELOPMENT  STAGE  ACCOUNTING
The Company is a development stage company, as defined in Statement of Financial
Accounting Standards No. 7.  Generally accepted accounting principles that apply
to  established  operating  enterprises  govern  the recognition of revenue by a
development  stage  enterprise  and the accounting for costs and expenses.  From
inception  to  December  31, 2001, the Company has been in the development stage
and all its efforts have been devoted to obtaining worldwide licensing rights to
the  nuclear incinerator technology which is described above, and to testing the
related  equipment.  Except  for  interest  on bank deposits no revenue had been
realized  through  December  31,  2001.

BASIS  OF  PRESENTATION
The Company has incurred losses from inception to December 31, 2001 of $278,526.
Capital was raised during 2001 in the amount of $274,540 through the issuance of
20,047,816  shares  of  common  stock.  This  is  expected  to  provide adequate
financing  to  allow  the  Company  to  begin  using its licensing rights to the
nuclear  incinerator  technology.

CASH
For  purposes  of  the statements of cash flows, the Company considers all short
term  debt  securities  purchased  with a maturity of three months or less to be
cash  equivalents.


                                      F-6
<PAGE>
                           AMANASU ENERGY CORPORATION
                           --------------------------
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2001



1.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)


FIXED  ASSETS
Fixed  assets  are  recorded at cost. Depreciation is computed using accelerated
methods,  with  lives  of seven years for furniture and equipment and five years
for  computers  and  automobiles.

LICENSING  AGREEMENT
During  the year 2000, the Company issued 13,000,000 shares of common stock to a
company  that  is wholly owned by the Company's president as a fee for arranging
for  the  acquisition  of  the  licensing  agreement for the technology. Another
1,200,000  shares  was  issued in 2001 in connection with the acquisition of the
agreement.  No  value  has  been  assigned  to  this  intangible  asset.

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.

USE  OF  ESTIMATES
The  preparation  of  financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect  certain  reported  amounts  and  disclosures  of  contingent  assets and
liabilities  at the date of the financial statements and the reported amounts of
revenues  and expenses during the reporting periods. Actual results could differ
from  those  estimated.

ADVERTISING  COSTS
The  Company will expense advertising costs when the advertisement occurs. There
has  been  no  spending  thus  far  on  advertising.

SEGMENT  REPORTING
Management will treat the operations of the Company as one segment.


                                      F-7
<PAGE>
                           AMANASU ENERGY CORPORATION
                           --------------------------
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTE TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2001


1.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)

COMMON  STOCK
During  2000,  the  Company  issued  13,000,000  shares of its common stock to a
corporation wholly owned by the Company's president in connection with obtaining
a license of the technology.  An additional 1,200,000 shares of common stock was
issued  during  2001  in  connection with obtaining the agreement.  In addition,
during  2000 the Company issued 7,000,000 shares of common stock as compensation
for  salaries to its officers and for services provided by consultants.  Of this
total,  3,512,500  shares were issued to two officers as salaries for the period
from November 1, 1999 to December 31, 2001 which were valued in the aggregate at
$35,125.  Of  this  amount,  270,300  shares ($2,703) were allocated to the 1999
period, with the balance of such shares allocated equally between 2000 and 2001.
The  remaining  3,487,500  shares  of  common  stock issued for services went to
various consultants in connection with services rendered during the 2000 period.
These  shares  were  valued  at  $34,875.

2.     RELATED PARTY TRANSACTIONS

A  total  of  13,000,000 shares was issued during the year 2000 to a corporation
which  is  controlled by the president of the Company.  These shares were issued
as compensation for arranging the acquisition of the licensing agreement for the
nuclear  incinerator  technology.  An  additional 3,512,500 shares was issued to
officers  of  the  Company  during  the year 2000 as compensation for the period
November  1,  1999  to  December  31,  2001.

An  option  for  an  additional  20,000,000 shares was issued to the corporation
which  is  controlled  by  the  president  of the Company in connection with the
acquisition  of  the licensing agreement.  The exercise price of this option was
$.01  per  share.  This  option  was  exercised  in  May  2001.


                                      F-8
<PAGE>
                           AMANASU ENERGY CORPORATION
                           --------------------------
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTE TO FINANCIAL STATEMENTS
                                December 31, 2001
                                -----------------

3.     INCOME TAXES

The  Company  experienced  losses  during  1999,  2000,  and  2001 which totaled
$283,526.  As  a  result,  it  has incurred no Federal income tax.  The Internal
Revenue  Code  allows  net  operating  losses  (NOL's) to be carried forward and
applied  against  future  profits  for  a period of twenty years.  The potential
benefit  of  the NOL has been recognized on the books of the Company, but it has
been  offset  by  a valuation allowance.  If not used, the NOL carryforward will
expire  during  the  years  2019,  2020,  and  2021.

Under Statement of Financial Accounting Standards No. 109, recognition of
deferred tax assets is permitted unless it is more likely than not that the
assets will not be realized.  The Company has recorded noncurrent deferred tax
assets as follows:


          Deferred Tax Assets          $ 94,699
          Valuation Allowance            94,699
                                       --------
              Balance Recognized       $      -
                                       ========

<TABLE>
<CAPTION>
4.     EARNINGS PER SHARE

                                           Net       Average Shares   Per Share
                                           Loss       Outstanding      Amount
                                        ----------  ----------------  ---------
<S>                                     <C>         <C>               <C>

                                                         Year 2001
                                                        ----------

Loss allocable to
      common shareholders               $(224,737)        33,581,866  $   (.01)
                                        ==========  ================  =========

                                                        Year 2000
                                                        ----------

      Loss allocable to
    common shareholders                 $(51,086)          6,819,672  $   (.01)

                                        Period February 22 to December 31, 1999
                                        ---------------------------------------

  Loss allocable to
      common shareholders               $  (2,703)                 -  $      -
                                        ==========  ================  =========
</TABLE>

Options  to  purchase  common stock were outstanding at the end of 2000 but were
not  included  in  the  computation of earnings per share because such inclusion
would  have  an  antidilutive  effect.


                                      F-9
<PAGE>
                           AMANASU ENERGY CORPORATION
                           --------------------------
                          (A Development Stage Company)
                          NOTE TO FINANCIAL STATEMENTS
                                December 31, 2001


5.     RENTALS  UNDER  OPERATING  LEASES

The  Company conducts its operations from leased office and warehouse facilities
in  Seattle,  Washington  under  noncancelable  operating  leases  which  expire
September 30, 2003 and October 31, 2004, respectively.  In addition, the Company
leases  a  Seattle  apartment  under  an operating lease that expires August 31,
2002.

The following is a schedule of future minimum rental payments required under the
above  operating  leases  as  of  December  31,  2001.

                    Year  ending
                    December  31,                 Amount
                    -------------               --------

                      2002                      $ 76,604
                      2003                        59,161
                      2004                        30,280
                                                --------
                                                $166,045

6.    SUPPLEMENTAL  DISCLOSURES  OF  CASH  FLOWS  INFORMATION

There  was  no  cash paid for interest or income taxes during any of the periods
presented.

The following non-cash financing and investing activity occurred:

Shares of common stock were issued for services during the year 2000, totaling
20,000,000.  Of this total, 13,000,000 shares were treated as the cost of
obtaining a licensing agreement, and the remainder were treated as the cost of
other services.

An additional 1,200,000 shares were issued during 2001 in connection with
obtaining the licensing agreement.


                                      F-10
<PAGE>