UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 x
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the
	quarterly period ended November 30, 2008 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from  to
 Commission file number ( 000-50783 )
  Florida
(State or other jurisdiction 
of incorporation or organization)
    
    56-2335301
(IRS Employer
Identification No.)1150 S US Highway 1, Suite 302Jupiter, Florida
    
    33477-7236(Address of principal executive offices)
    
    (Zip code)
 (561) 249-1354     Table of Contents
 Indicate by check mark whether the registrant: (1) has filed all reports required to be filed
 by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
 o x Indicate by check mark whether the registrant has submitted electronically and posted on its
corporate Web site, if any, every Interactive Data File required to be submitted and posted
pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period
that the registrant was required to submit and post such files).
 o x
 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated
filer, a non-accelerated filer or a smaller reporting company (as defined by Rule 12b-2 of the
Exchange Act).
 Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company x(Do not check if a smaller reporting company)
 Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2
of the Exchange Act).
 x o
 As of August 31, 2012 there were
	53,989,247
	common shares of the registrant's common stock, par value $.0001
per share, outstanding.  2   Table of Contents
 American Environmental, Inc. (A Development Stage
	Company)INDEX
 PagePART 1 FINANCIAL INFORMATIONItem 1
			Condensed Financial Statements
			
			
			4Condensed Balance Sheets as of November
				30, 2008
				(unaudited) and May 31, 2008
			
			
			4Condensed Statements of Operations for the
				Three and Six Month Periods Ended November 30, 2008 and for the
				Period from March
				28, 2008 (date of bankruptcy effectiveness) through November 30,
				2008 (unaudited)
			
			
			5Condensed Statement of Changes in
				Stockholders' Deficit
				for the Period from March 28, 2008 (date of bankruptcy
				effectiveness) through November 30, 2008
				(unaudited)
			
			
			6Condensed Statements of Cash Flows for the Six Months Ended
				November 30, 2008 and for the Period from March 28,
				2008 (date of bankruptcy effectiveness) through November 30,
				2008 (unaudited)
			
			
			7Notes to Condensed Financial Statements
				(unaudited)
			
			
			8Item 2.
			Management's Discussion and Analysis of Financial Condition and Results of Operations
			
			
			12Item 3.
			Quantitative and Qualitative Disclosures About Market Risk
			
			
			12Item 4.
			Controls and Procedures
			
			
			13PART 2 OTHER INFORMATIONItem 1.
			Legal Proceedings
			
			
			14Item 1A.
			Risk Factors
			
			
			14Item 2.
			Unregistered Sales of Equity Securities and Use of Proceeds
			
			
			14Item 3.
			Defaults Upon Senior Securities
			
			
			14Item 4.
			Submission of Matters to a Vote of Security Holders
			
			
			14Item 5.
			Other Information
			
			
			14Item 6.
			Exhibits
			
			
			14SIGNATURE
			
			
			14




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##### Table of Contents



PART 1. FINANCIAL INFORMATION




Item 1. Financial Statements




American
	Environmental, Inc.


(A Development Stage Company)


Condensed Balance Sheets November
		30, 2008
		
		
		May 31, 2008Assets
		
		
		(unaudited)Current AssetsCash and cash equivalents
		
		$
		3
		
		
		$
		2Total
		current assets
		
		
		3
		
		
		
		2Total
		assets
		$
		3
		
		
		$
		2Liabilities and Stockholders'
		DeficitCurrent LiabilitiesAccounts
		payable
		$
		1,790
		
		
		$
		1,790Loans payable - related parties
		
		
		252
		
		
		
		129Total current liabilities
		
		
		2,042
		
		
		
		1,919Total
		liabilities
		
		2,042
		
		
		
		1,919Commitments
		and ContingenciesStockholders'
		Deficit:Common stock, $.0001 par value; 300,000,000 shares authorized; 46,905,247
		and 45,893,247 shares issued and outstanding, respectively
		
		
		4,691
		
		
		
		4,589Paid-in-capital
		
		
		1,043,151
		
		
		
		1,033,133Deficit accumulated during the development stage
		
		
		(1,049,881
		)
		
		
		(1,039,639
		)Total stockholders' deficit
		
		
		(2,039
		)
		
		
		(1,917
		)Total liabilities and stockholders' deficit
		
		$
		3
		
		
		$
		2


See accompanying notes to unaudited condensed financial statements.



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##### Table of Contents

American Environmental, Inc.
 (A Development Stage Company)
  Condensed Statements of Operations (unaudited) ThreeMonths Ended November 30, 2008
			
			SixMonths Ended November 30, 2008
			
			
			Period from March 28, 2008 (Date of Bankruptcy Effectiveness) Through
		November 30, 2008Net Sales
			$
			92
			
			
			$
			92
			
			
			$
			92Cost of Sales
			
			0
			
			
			
			0
			
			
			
			0Gross
		profit
			
			92
			
			
			
			92
			
			
			
			92Operating expenses:General &
		administrative
			
			5,075
			
			
			
			10,308
			
			
			
			18,676Sales and marketing
			
			26
			
			
			
			26
			
			
			
			26Total operating expenses
			
			5,101
			
			
			
			10,334
			
			
			
			18,702Loss from operations
			
			(5,009
			)
			
			
			(10,242
			)
			
			
			(18,610
			)Other ExpenseLoss on write-down
		of receivables
			
			0
			
			
			
			0
			
			
			
			(25,058
			)Other Expense
			
			0
			
			
			
			0
			
			
			
			(25,058
			)Net
		Loss
			$
			(5,009
			)
			
			$
			(10,242
			)
			
			$
			(43,668
			)Basic and DilutedNet loss per common share
			$
			(.000
			)
			
			$
			(.000
			)
			
			$
			(.001
			)Weighted-average shares outstanding:
			
			46,404,808
			
			
			
			46,150,395
			
			
			
			45,876,529 See accompanying
	notes to unaudited condensed financial statements.
  5   Table of Contents




American Environmental, Inc. (A Development Stage Company) Condensed
	Statement of Changes in Stockholders' Deficit (unaudited)  Common Stock
		
	Add'l Paid in Capital
	
	Deficit AccumulatedDuring the Development StageTotal
	Stockholders'
		Equity (Deficit)Number of Sharesat Par Value 
		$.0001Balance Mar. 28, 2008
		(date of bankruptcy effectiveness)
		
		45,080,747
		
		
		$
		4,508
		
		
		$
		1,025,089
		
		
		$
		(1,006,213
		)
		
		$
		23,384Issuance of common stock for services
		
		812,500
		
		
		
		81
		
		
		8,044
		0
		
		8,125Net loss
		March 28, 2008 through May 31, 2008
		
		0
		0
		
		0
		
		
		
		(33,426
		)
		
		
		(33,426
		)Balance May 31, 2008
		
		45,893,247
		
		
		
		4,589
		
		
		
		1,033,133
		
		
		
		(1,039,639
		)
		
		
		(1,917
		)Issuance of common stock for services
		
		1,012,000
		
		
		
		102
		
		
		10,018
		0
		
		10,120Net loss six months ended November 30, 2008
		
		0
		0
		
		0
		
		
		
		(10,242
		)
		
		
		(10,242
		)Balance November 30, 2008
		
		46,905,247
		
		
		$
		4,691
		
		
		$
		1,043,151
		
		
		$
		(1,049,881
		)
		
		$
		(2,039
		)   See accompanying notes to unaudited condensed financial statements.




6



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##### Table of Contents




American Environmental,
	Inc.

(A Development Stage Company)

Condensed Statements of Cash
	Flows

(unaudited)

|                                                                                | 
|------------------------------------------------------------------------------- | 
|                                                                                | 
|Cash
		flows from operating activities:                                         | 
|Net loss                                                                        | 
|Adjustments to reconcile net loss to net cash provided by operating activities: | 
|Stock-based compensation                                                        | 
|Write down of notes receivable                                                  | 
|Changes in operating assets and liabilities                                     | 
|Decrease (increase) to accounts receivable                                      | 
|Decrease (increase) to accrued interest receivable                              | 
|Decrease to
		prepaid assets                                                    | 
|Increase (decrease) to accounts payable and accrued expenses                    | 
|                                                                                | 
|Net cash
		provided by operating activities                                     | 
|                                                                                | 
|                                                                                | 
|Cash Flows From Investing Activities                                            | 
|Purchase of property and
		equipment                                            | 
|                                                                                | 
|Net cash used in
		investing activities                                         | 
|                                                                                | 
|                                                                                | 
|Cash Flows From Financing Activities                                            | 
|Proceeds from
		related companies                                               | 
|                                                                                | 
|Net cash provided by
		financing activities                                     | 
|                                                                                | 
|                                                                                | 
|Net
		increase in cash                                                          | 
|                                                                                | 
|Cash at beginning of
		period                                                   | 
|                                                                                | 
|                                                                                | 
|Cash at end of
		period                                                         | 
|                                                                                | 
|                                                                                | 
|                                                                                | 
|Supplemental Disclosure
		of Cash Flow Information:                             | 
|Interest paid                                                                   | 
|                                                                                | 
|                                                                                | 
|Income taxes paid                                                               | 
|                                                                                | 

See accompanying notes to unaudited condensed financial
statements.



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##### Table of Contents

American
Environmental, Inc. (A Development Stage Company) Notes to
Condensed Financial Statements (unaudited) Note A. Description of Business American Environmental, Inc. (the "Company" or "AEI") was
originally incorporated in the State of Florida on February 28, 2003 as
MyZipSoft, Inc. ("MyZipSoft"), a wholly owned subsidiary of eCom eCom.com, Inc. ("eCom"). 
MyZipSoft's core business was the development and distribution of software
products.  Its first product was a digital image compression software call
MyPhotoZip. The Company ceased pursing this line of business during June 2006.  The Company currently has no operations. Pursuant to SEC Staff Legal Bulletin No. 4, eCom decided to spin off the Company into an independent company in the belief that the independent company, with a distinct business, would be better able to obtain necessary funding and develop their business plans. On
December 1, 2003, the Board of Directors of eCom approved the spin-off of
MyZipSoft, Inc. eCom spun off
MyZipSoft on January 23, 2004. The spin-off was subject to the effectiveness of the bankruptcy of eCom. 
The stock dividend from eCom was one share of MyZipSoft, Inc. for
every 100 shares of eCom held.  This dividend had a shareholder of record
date of February 23, 2004 and a payment date of June 2, 2005. On December 12, 2003, the Company changed its
name to Freedom 4 Wireless, Inc. ("F4W") in connection with its spin off by eCom
and its planned acquisition of certain assets of a company known as Freedom 4
Wireless, Inc. (Delaware).  On January 24, 2005, the Company changed their
name back to MyZipSoft, Inc. due to the discontinued operations of the wireless
division.  MyZipSoft, Inc. changed its name to American Environmental, Inc.
on November 2, 2005. On March 28, 2008 the US Bankruptcy court issued a final order on the eCom bankruptcy case.  As a result of the emergence of
American Environmental, Inc. (Prior American Environmental) ("Prior AEI") from operating under Chapter 11 of the United States Bankruptcy Code (the Bankruptcy Code) on March 28, 2008 (the Effective Date), the Company is the successor registrant to Prior
American Environmental pursuant to Rule 12g-3 under the Securities Exchange Act of 1934. Note B. Summary of Significant Accounting Policies BASIS OF PRESENTATION,
USE OF ESTIMATES The Company maintains its accounts on the accrual basis of accounting. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. DEVELOPMENTSTAGECOMPANY Based upon the Company's business plan, it is a development stage
enterprise since planned principal activities have not yet commenced.  As a
development stage enterprise, the Company discloses the deficit accumulated
during the development stage commencement to the current  balance sheet
date on the condensed statement of changes in shareholders' deficit.  The
development stage began February 28, 2003, the date the Company was
incorporated. REVENUERECOGNITION Revenue is recognized when persuasive evidence of an arrangement
exists, delivery has occurred, the fee is fixed or determinable and
collectability is assured. CASH Cash consists of deposits in banks and other financial
institutions having original maturities of less than ninety days. STOCK-BASEDCOMPENSATION The accounting for common stock issued for services
is based on the estimated fair value of the common stock issued as of the grant date. Because there is no market for the Company's common stock and no operations, the Company recorded the issuance of common stock for services at
par value, which approximated the value of services received. 8   Table of Contents INCOME TAXES The Company accounts for income taxes in accordance with FASB
Statement No. 109, Accounting for Income Taxes (FASB 109). Under FASB 109,
income taxes are provided for the tax effects of transactions reported in the
financial statements and consist of taxes currently due plus deferred taxes
related to certain income and expenses recognized in different periods for
financial and income tax reporting purposes. Deferred tax assets and liabilities
represent the future tax return consequences of those differences, which will
either be taxable or deductible when the assets and liabilities are recovered or
settled. Deferred taxes also are recognized for operating losses and tax credits
that are available to offset future taxable income and income taxes,
respectively. A Valuation allowance is provided if it is more likely than not
that some or all of the deferred tax asset will not be realized. NET LOSSPERCOMMONSHARE Basic net loss
per common share is computed using the weighted average number of common shares
outstanding during each period presented. Diluted net loss per common share is
computed by using the weighted average number of common shares and potential
common shares outstanding during the period. RECENTLY ISSUEDACCOUNTINGSTANDARDS In December 2008, the FASB issued FSP FIN No. 48-3, "Effective Date of FASB
Interpretation No. 48 for Certain Nonpublic Enterprises." FSP FIN No. 48-3
defers the effective date of FIN No. 48, "Accounting for Uncertainty in Income
Taxes," for certain nonpublic enterprises as defined in SFAS No. 109,
"Accounting for Income Taxes." However, nonpublic consolidated entities of
public enterprises that apply U.S. generally accepted accounting principles (GAAP)
are not eligible for the deferral. FSP FIN No. 48-3 was effective upon issuance.
The impact of adoption was not material to the Company's financial condition or
results of operations. In December 2008, the FASB issued FSP FAS No. 140-4 and FIN No. 46(R) -8,
"Disclosures by Public Entities (Enterprises) about Transfers of Financial
Assets and Interests in Variable Interest Entities." This FSP amends SFAS No.
140, "Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities," to require public entities to provide
additional disclosures about transfers of financials assets. FSP FAS No. 140-4
also amends FIN No. 46(R)-8, "Consolidation of Variable Interest Entities," to
require public enterprises, including sponsors that have a variable interest
entity, to provide additional disclosures about their involvement with a
variable interest entity. FSP FAS No. 140-4 also requires certain additional
disclosures, in regards to variable interest entities, to provide greater
transparency to financial statement users. FSP FAS No. 140-4 is effective for
the first reporting period (interim or annual) ending after December 15, 2008,
with early application encouraged. The adoption of FSP FAS No. 140-4 did not
have an impact on the Company's financial position and results of operations. In October 2008, the FASB issued FSP FAS No. 157-3, "Determining the Fair Value
of a Financial Asset When the Market for That Asset is Not Active." This FSP
clarifies the application of SFAS No. 157, "Fair Value Measurements," in a
market that is not active. The FSP also provides examples for determining the
fair value of a financial asset when the market for that financial asset is not
active. FSP FAS No. 157-3 was effective upon issuance, including prior periods
for which financial statements have not been issued. The impact of adoption was
not material to the Company's financial condition or results of operations. In June 2008, the FASB issued EITF Issue No. 03-6-1, "Determining Whether
Instruments Granted in Share-Based Payment Transactions Are Participating
Securities." EITF No. 03-6-1 addresses whether instruments granted in
share-based payment transactions are participating securities prior to vesting
and, therefore, need to be included in the earnings allocation in computing
earnings per share under the two-class method. The EITF 03-6-1 affects entities
that accrue dividends on share-based payment awards during the awards' service
period when the dividends do not need tobe returned if the employees forfeit the award. EITF 03-6-1 is effective for
fiscal years beginning after December 15, 2008. The adoption of EITF 03-6-1 did
not impact the Company's financial position and results of operations. 9   Table of Contents  RECENTLY ISSUEDACCOUNTINGSTANDARDS
- (continued)  In April 2008, the FASB issued FSP FAS No. 142-3, "Determination of the Useful
Life of Intangible Assets", whichamends the factors that should be considered in developing renewal or extension
assumptions used to determine the useful life of intangible assets under SFAS
No. 142 "Goodwill and Other Intangible Assets". The intent of this FSP is to
improve the consistency between the useful life of a recognized intangible asset
under SFAS No. 142 and the period of the expected cash flows used to measure the
fair value of the asset under SFAS No. 141 (revised 2007) "Business
Combinations" and other U.S. generally accepted accounting principles. The
adoption of FSP FAS No. 142-3 did not have a material impact on the Company's
financial statements. In February 2008, the FASB issued FSP FAS No. 157-2, "Effective Date of FASB
Statement No. 157". This FSP delays the effective date of SFAS No. 157 for all
nonfinancial assets and nonfinancial liabilities, except those that are
recognized or disclosed at fair value on a recurring basis (at least annually).
The impact of adoption was not material to the Company's consolidated financial
condition or results of operations. In December 2007, the FASB issued SFAS No. 141(R) "Business Combinations." This
Statement replaces the original SFAS No. 141. This Statement retains the
fundamental requirements in SFAS No. 141 that the acquisition method of
accounting (which SFAS No. 141 called the purchase method) be used for
all business combinations and for an acquirer to be identified for each business
combination. The objective of SFAS No. 141(R) is to improve the relevance, and
comparability of the information that a reporting entity provides in its
financial reports about a business combination and its effects. To accomplish
that, SFAS No. 141(R) establishes principles and requirements for how the
acquirer: a.
		Recognizes and measures in its financial statements the identifiable
		assets acquired, the liabilities assumed, and any noncontrolling
		interest in the acquiree.b.
		Recognizes and measures the goodwill acquired in the business
		combination or a gain from a bargain purchase.c.
		Determines what information to disclose to enable users of the financial
		statements to evaluate the nature and financial effects of the business
		combination. This Statement
applies prospectively to business combinations for which the acquisition date is
on or after the beginning of the first annual reporting period beginning on or
after December 15, 2008 and may not be applied before that date. The adoption of
SFAS No. 141(R) did not have a material impact on the Company's results of
operations and financial condition. In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for
Financial Assets and Financial Liabilities - Including an amendment of SFAS No.
115," which becomes effective for the Company on February 1, 2008, permits
companies to choose to measure many financial instruments and certain other
items at fair value and report unrealized gains and losses in earnings. Such
accounting is optional and is generally to be applied instrument by instrument.
There was no material impact on the Company's results of operations and
financial condition due to the adoption of SFAS No. 159. In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements." SFAS
No. 157 provides guidance for using fair value to measure assets and
liabilities. SFAS No. 157 addresses the requests from investors for expanded
disclosure about the extent to which companies' measure assets and liabilities
at fair value, the information used to measure fair value and the effect of fair
value measurements on earnings. SFAS No. 157 applies whenever other standards
require (or permit) assets or liabilities to be measured at fair value, and does
not expand the use of fair value in any new circumstances. SFAS No. 157 is
effective for financial statements issued for fiscal years beginning after
November 15, 2007 and was adopted by the Company in the first quarter of fiscal
year 2008. There was no material impact on the Company's results of operations
and financial condition due to the adoption of SFAS No. 157. Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.  10   Table of Contents Note C.  Involuntary
Reorganization under Chapter 11 The
Plan of Reorganization became effective and the Company emerged from Chapter 11
reorganization proceedings on March 28, 2008 (the "Reorganization Effective
Date").  On the Reorganization Effective Date, the Company implemented
fresh-start reporting in accordance with American Institute of Certified Public
Accounts Statement of Position 90-7:Financial Reporting by Entities in
Reorganization under the Bankruptcy Code("SOP 90-7"). All
conditions required for the adoption of fresh-start reporting were met upon
emergence from the reorganization Proceedings on the Reorganization Effective
Date.  As a result, the fair value of the Prior AEI assets became the new basis
for the Company's statement of financial position as of the
Fresh-Start Adoption Date, and all operations beginning on or after March 28,
2008 are related to the Successor Company. As aresult of the application of fresh-start reporting,
the financial statements prior to and including March 28, 2008 represent the
operations of the Prior AEI and are not comparable with the financial
statements for periods on or after March 28, 2008.  References to "New AEI" refer to the Company on or after March 28, 2008, after giving effect
to the application of fresh-start reporting. References to the "Prior AEI" refer to the
Company prior to and including March 28, 2008. Note D.
Note and Loans Receivable The Note receivable dated June 1, 2005 was with Miami Filter in the amount of
$50,000, plus accrued interest at 5% interest per annum on the unpaid balance.
The note was non-collateralized and was scheduled to mature on September 1, 2005. 
On May 31, 2008, the note was deemed uncollectable and the uncollected principal
balance of $22,500 plus accrued
interest of $2,558 was charged off resulting in a net loss off $25,058. Note E.  Income Taxes The Company does not believe that the realization of the related net deferred tax asset meets the criteria required by generally accepted accounting principles and, accordingly, the deferred income tax asset arising from such loss carry forward has been fully reserved. Deferred income taxes (benefits) are provided for certain income and expenses which are recognized in different periods for tax and financial reporting purposes. The Company had cumulative net operating loss carry-forwards for income tax purposes at
November 30, 2008 of approximately $1,020,000, expiring through May 31, 2029. The Company has established a 100% valuation allowance against this deferred tax asset, as the Company has no history of profitable operations. Note
F. Related Party Transactions The
Company is allocated certain expenses such as rent, travel and administrative
that are paid on behalf of the Company by American Capital Holdings, Inc., and
United States Financial Group, Inc,
companies that are related to the Company by mutual stockholders and Directors.
The total expenses allocated to the Company in the six months ended November 30,
2008 and for the period from March 28, 2008 (date of bankruptcy effectiveness)
through November 30, 2008 was $10,120
and $18,245, respectively. The Company has received cash advances from Richard
Turner, CFO of the Company, in varying amounts and at various times subsequent
to November 30, 2008. These related party loans were non-collateralized, non-interest
bearing and due on
demand. As of November 30, 2008 the balance owed Mr. Turner was $252. 11


##### Table of Contents

Note G. Going Concern
As reflected in the unaudited condensed accompanying financial statements, the
Company had a net loss for the period March 28, 2008 (date of
bankruptcy effectiveness) through November 30, 2008 of $43,668. The ability of the
Company to continue as a going concern is dependent on the Company's ability to
further implement its business plan and raise capital. The financial statements
do not included any adjustments that might be necessary if the Company is unable
to continue as a going concern.
 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
 Revenue for the
	six months ended November 30, 2008 and 2007 was $92 and $181 respectively. Total operating expenses for the six months ended November
30, 2008 was $10,334 compared to $52,111 for the
six months ended November 30, 2007.  The decrease resulted from lower rent, transfer agent fees and management
expenses incurred during the six months ended November 30, 2008. The operations for the
six months ended November 30, 2008 resulted in a net loss of $10,242 versus a net loss of $52,881 recorded in the
six months ended November 30, 2007. History of the Company To review the History
	of the Company, see Part 1, Item 1 of our annual report filed for
	the Period May 31, 2008.  That note is hereby incorporated by reference
	into this Part 1, Item 2.
 Recently Adopted Accounting Pronouncements
 For a discussion of recently adopted accounting pronouncements, see Note
	B to our  financial statements at Part 1, Item 1 to this quarterly report.
 Accounting Pronouncements That We Have Not Yet Adopted
 For a discussion of recently issued accounting pronouncements that we have not yet adopted, see
Note B to our  financial statements at Part 1, Item 1 to this quarterly
report.




Forward-Looking Statements
 This quarterly report
	on Form 10-Q contains "forward-looking statements" within the meaning of the
	federal securities laws. Statements regarding future events and developments
	and our future performance, as well as management's current expectations,
	beliefs, plans, estimates or projections relating to the future, are
	forward-looking statements within the meaning of these laws.  Actual
	results could differ materially from those set forth in the forward-looking
	statements.


Item 3. Quantitative and Qualitative Disclosures About Market Risk
 Not Applicable


12



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##### Table of Contents



Item 4. Controls and Procedures
 Evaluation of Disclosure Controls and Procedures
 We maintain disclosure controls and procedures that are designed to
		ensure that information required to be disclosed by us in the reports
		that we file or submit to the Securities and Exchange Commission under
		the Securities Exchange Act, is recorded, processed, summarized, and
		reported within the time periods specified by the Securities and
		Exchange Commission's rules and forms, and that information is
		accumulated and communicated to our management, including our principal
		executive and principal financial officer (whom we refer to in this
		periodic report as our Certifying Officer), as appropriate to allow
		timely decisions regarding required disclosure.  Our management is
		responsible for establishing and maintaining adequate internal control
		over financial reporting.  Our management evaluated, with the
		participation of our Certifying Officer, the effectiveness of our
		disclosure controls and procedures (as defined in Rule 13a-15(e) under
		the Securities Exchange Act) as of November 30, 2008, pursuant to
		Rule 13a-15(b) under the Securities Exchange Act.  Based upon that
		evaluation, our Certifying Officer concluded that, as of November 30,
		2008, our disclosure controls and procedures were effective at the
		reasonable assurance level.
  Management's Report on Internal Control over Financial Reporting
  Internal control over financial reporting is a process to provide
		reasonable assurance regarding the reliability of financial reporting
		and the preparation of financial statements for external purposes in
		accordance with GAAP.  There has been no change in our internal control
		over financial reporting during the six months ended November 30, 2008,
		that has materially affected, or is reasonably likely to materially
		affect, our internal control over financial reporting.
  Our management, including our Certifying Officer, does not expect that
		our disclosure controls and procedures or our internal controls will
		prevent all errors and all fraud.  A control system, no matter how well
		conceived and operated, can provide only reasonable, not absolute,
		assurance that the objectives of the control system are met.  Further,
		the design of a control system must reflect the fact that there are
		resource constraints, and the benefits of controls must be considered
		relative to their costs.  Because of the inherent limitations in all
		control systems, no evaluation of the controls can provide absolute
		assurance that all control issues and instances of fraud, if any, within
		the Company have been detected.
  Our Certifying Officer conducted an evaluation of the effectiveness of
		our internal control over financial reporting based on the framework inInternal
		Control - Integrated Frameworkissued
		by the Committee of Sponsoring Organizations of the Treadway
		Commission.  Based on this evaluation, he concluded that our internal
		control over financial reporting was effective as of November 30, 2008.


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##### Table of Contents

PART 2. OTHER INFORMATION
 Item 1. Legal Proceedings
 None
 Item 1A. Risk Factors
 There have been no material changes to the risk factors presently disclosed in our
	May 31, 2008 Form 10-K.
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
 None Item 3. Defaults Upon Senior Securities
 None
 Item 4. Submission of Matters to a Vote of
	Security Holders
 There were no matters
	submitted to a vote by the security holders during the six months ended
	November 30, 2008.
 Item 5. Other Information
 None
 Item 6. Exhibits
  Exhibit 31.1
    
    Certification pursuant to Rule 13a — 14(a), as adopted
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.Exhibit 31.2
    
    Certification pursuant to Rule 13a — 14(a), as adopted
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.Exhibit 32.1
    
    Certification pursuant to 18 U.S.C. Section 1350, as
 adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002.
 SIGNATURE
  American Environmental, Inc.Date: August 31, 2012
    By:
    /s/ Richard C. TurnerRichard C. TurnerChief Financial Officer
(Duly Authorized Officer and Principal
Financial and Accounting Officer)
 14