**UNITED
STATES**
 **SECURITIES
AND EXCHANGE COMMISSION**
 **Washington,
D. C. 20549**
 
 FORM
10-QSB
 
 x
    QUARTERLY
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934
 For the
period ended March 31, 2005
 
 o
    TRANSITION
      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE Act of
      1934
 
 For the
transition period from ___ to ___.
 Commission
file number: 000-32905
 
 **AMANASU
ENVIRONMENT CORPORATION**
 
 (Exact
name of small business issuer as specified in its charter)
 
 Nevada
    
    98-0347883(State
      or other jurisdiction of organization)
    
    (IRS
      Employer Identification No.)
 
 701
Fifth Avenue, 42nd Floor, Seattle, WA 98104
 (Address
of principal executive offices)
 
 206-262-8188
 (Issuer's
telephone number)
 
 (Former
name, former address and former fiscal year, if changed since last
report)
 
 Check
whether issuer (1) filed all reports to be filed by Section 13 or 15(d) of the
Exchange Act during the past 12 months (or 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.    Yes
x    No o
 
 APPLICABLE
ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
 PRECEDING
FIVE YEARS
 
 Check
whether the registrant filed all documents and reports required to be filed by
Section 12, 13, or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court.    Yes o    No o    N/A x
 
 APPLICABLE
ONLY TO CORPORATE ISSUERS
 
 State the
number of shares outstanding of each of the issuer's classes of common equity,
as of the latest practicable date: 44,020,816 as of May 10, 2005. Transitional
Small Business Disclosure Format:    Yes o    No x
  
 2
 ****
 **AMANASU ENVIRONMENT CORPORATION**
 **QUARTERLY
REPORT ON FORM 10QSB**
 **FOR
THE THREE MONTHS ENDED MARCH 31, 2005**
 **TABLE
OF CONTENTS**
  PART 1 - FINANCIAL
      INFORMATIONItem
      1:
    Page
      #Financial
      Statements:Balance Sheets as of March 31, 2005 (unaudited) and
      December 31, 2005 (audited)
    4Statement of Operations and Deficit Accumulated for the
      three months ended March 31, 2005 and 2004 (unaudited)
    5Statement of Cash Flows for the three months ended March 31,
      2005 and 2004 (unaudited)
    6Notes to Financial Statements (unaudited)
    7Item 2:   Management Discussion & Analysis of
      Financial Condition and Results of Operations
    9Item 3:   Controls and Procedures
    13PART
      2 - OTHER INFORMATIONItem
      1:   Legal Proceedings
    13Item
      2:   Changes in Securities
    13Item
      3:   Defaults upon Senior Securities
    13Item
      4:   Submission of Matters to Vote of Security
      holders
    13Item
      5:   Other Information
    13Item
      6:   Exhibits and Reports on Form
      8-K
    13Signatures
    14
 
 ITEM 1.
FINANCIAL STATEMENTS
 
 GENERAL
 
 The
Company's unaudited financial statements for the three months ended March 31,
2005 are included with this Form 10-QSB. The unaudited financial statements have
been prepared in accordance with the instructions to Form 10-QSB and, therefore,
do not include all information and footnotes necessary for a complete
presentation of financial position, results of operations, and cash flows in
conformity with generally accepted accounting principles. In the opinion of
management, all adjustments considered necessary for a fair presentation of the
results of operations and financial position have been included and all such
adjustments are of a normal recurring nature. Operating results for the three
months ended March 31, 2005 are not necessarily indicative of the results that
can be expected for the fiscal year ending December 31, 2005.
  3
 Table of Contents
 ****
 **AMANASU
ENVIRONMENT CORPORATION**
 **(A
Development Stage Company)**
 **BALANCE SHEETS**
 **(Unaudited)**
  March
      31,
      2005
      (Unaudited)
    
    December
      31,
      2004
      (Audited)ASSETSCurrent
      Assets:Cash
    
    $
    2,911,796
    
    $
    9,459Miscellaneous
      receivables
    
    
    1,885
    
    
    1,885Total
      current assets
    
    
    2,913,681
    
    
    11,344Fixed
      Assets:Automotive
      equipment
    
    
    25,859
    
    
    25,859Less
      accumulated depreciation
    
    
    13,129
    
    
    12,685Net
      fixed assets
    
    
    12,730
    
    
    13,174Other
      Assets:Rent
      deposits
    
    
    143,595
    
    
    5,000Licensing
      agreement, net of accumulated amortization of $49,566 and $44,470
    
    
    296,934
    
    
    302,030Investments
    
    
    390,000
    
    
    -Total
      other assets
    
    
    830,529
    
    
    307,030Total
      Assets
    
    $
    3,756,940
    
    $
    331,548LIABILITIES
      AND STOCKHOLDERS’ EQUITYCurrent
      Liabilities:Accrued
      expenses
    
    $
    3,266
    
    $
    2,990Stockholder
      advance
    
    
    100
    
    
    100Total
      current liabilities
    
    
    3,366
    
    
    3,090Stockholders’
      Equity:Common
      stock: authorized 100,000,000 shares of $.001 par value; issued and
      outstanding 44,020,816 and 43,020,816, respectively
    
    
    44,021
    
    
    43,021Additional
      paid-in capital
    
    
    4,356,919
    
    
    857,919Deficit
      accumulated during the development stage
    
    
    (647,366
    )
    
    (572,482
    )Total
      Stockholders’ equity
    
    
    3.753,574
    
    
    328,458Total
      Liabilities and Stockholders’ Equity
    
    $
    3,756,940
    
    $
    331,548
 These
statements should be read in conjunction with the year-end financial
statements.
  4
 Table of Contents
 ****
 **AMANASU
ENVIRONMENT CORPORATION**
 **(A
Development Stage Company)**
 **STATEMENTSOF OPERATIONS AND DEFICIT**
 **ACCUMULATED
DURING DEVELOPMENT STAGE**
 **(Unaudited)**
 Three
      Month Periods Ended March 31,
    
    February
      22, 1999
      (Date
      of Inception)2005
    
    
    2004
    
    To
      March 31, 2005Expenses
    
    $
    75,989
    
    $****
    ****22,580
    
    $
    651,939Operating
      loss
    
    
    (75,989
    )
    
    (22,580
    )
    
    (651,939
    )Other
      Income - interest
    
    
    1,105
    
    
    78
    
    
    4,573Loss
      accumulated during development stage
    
    $
    (74,884
    )
    $
    (22,502
    )
    $
    (647,366
    )Loss
      Per Share -Basic
      and Diluted
    
    $
    -
    
    $
    -Weighted
      average number of sharesoutstanding
    
    
    43,765,261
    
    
    41,950,816
 These
statements should be read in conjunction with the year-end financial
statements.
  5
 Table of Contents
 ****
 **AMANASU
ENVIRONMENT CORPORATION**
 **A
Development Stage Company)**
 **STATEMENTS
OF CASH FLOWS**
 **(Unaudited)**
  Three
      Month PeriodsEnded
      March 31
    
    February
      22, 1999
      (Date
      of Inception)
      To
      March 3120052005
    
    2004**CASH
      FLOWS FROM OPERATIONS:**Net
      Loss
    
    $
    (74,884
    )
    $
    (22,502
    )
    $
    (647,366
    )Charges
      Not Requiring The Outlay Of Cash:Depreciation
      and amortization
    
    
    5,540
    
    
    ****5,539
    
    
    ****62,695Services
      provided for common stock
    
    
    **-**
    
    
    -
    
    
    70,000Changes
      in Assets and Liabilities:Increase
      (decrease) in accrued expenses
    
    
    ****276
    
    
    1,948
    
    
    3,266Increase
      in miscellaneous receivables
    
    
    ****(751
    ****)
    
    -
    
    
    (1,885
    )**Net Cash Consumed By Operating Activities**
    
    
    (69,068
    )
    
    (15,015
    )
    
    (513,290
    )**CASH
      FLOWS FROM INVESTING ACTIVITIES:**Acquisition
      of licensing agreement
    
    
    -
    
    
    -
    
    
    ****(155,000****
    ****)****Investments
      in joint ventures
    
    
    (390,000
    )
    
    -
    
    
    ****(390,000
    ****)Purchase
      of automobile
    
    
    -
    
    
    **-**
    
    
    (25,859
    )Rent
      deposits
    
    
    138,595
    
    
    -
    
    
    (143,595
    )**Net
      Cash Consumed By Investing Activities**
    
    
    (528,595
    )
    
    -
    
    
    (714,454
    )**CASH
      FLOWS FROM FINANCING ACTIVITIES:**Sales
      of common stock
    
    
    3,500,000
    
    
    -
    
    
    4,139,440Advances
      received in anticipation of common stock sales
    
    
    -
    
    
    -
    
    
    100**Net
      Cash Provided By Financing Activities**
    
    
    3,500,000
    
    
    -
    
    
    4,139,540Net
      change in cash
    
    
    2,902,337
    
    
    (15,015
    )
    
    2,911,796Cash
      balance, beginning of period
    
    
    9,459
    
    
    92,055
    
    
    -Cash
      balance, end of period
    
    $
    2,911,796
    
    $
    77,040
    
    $
    2,911,796
 These
statements should be read in conjunction with the year-end financial
statements.
  6
 Table of Contents
 ****
 **AMANASU
ENVIRONMENT CORPORATION**
 **(A
Development Stage Company)**
 **NOTES TO FINANCIAL STATEMENTS**
 **March
31, 2005**
 **(Unaudited)**
 
 **1.**
    **BASIS
      OF PRESENTATION**
 
 The
unaudited interim financial statements of Amanasu Environment Corporation (“the
Company”) as of March 31, 2005 and for the three month periods ended March 31,
2005 and 2004, have been prepared in accordance with accounting principles
generally accepted in the United State of America. In the opinion of management,
such information contains all adjustments, consisting only of normal recurring
adjustments, necessary for a fair presentation of the results for such periods.
The results of operations for the quarter ended March 31, 2005 are not
necessarily indicative of the results to be expected for the full fiscal year
ending December 31, 2005.
 
 Certain
information and disclosures normally included in the notes to financial
statements have been condensed or omitted as permitted by the rules and
regulations of the Securities and Exchange Commission, although the Company
believes the disclosure is adequate to make the information presented not
misleading. The accompanying unaudited financial statements should be read in
conjunction with the financial statements of the Company included in the annual
report on Form 10-KSB for the year ended December 31, 2004.
 
 **2.**
    **CAPITAL
      STOCK**
 
 Shares of
common stock totaling 1,000,000 shares were sold in a private transaction during
the quarter, yielding proceeds of $3,500,000.
 
 **3.**
    **INVESTMENTS**
 
 The
Company made two investments during the quarter: one for $290,000 in a company
that produces and markets an incinerator for the treatment of medical waste.
This investment will provide the Company a 20% interest in this venture. The
second investment, for $100,000 is in a joint venture to produce water
purification systems. There was no activity in either of these ventures in this
quarter.
  7
 Table of Contents
 ****
 **AMANASU
ENVIRONMENT CORPORATION**
 **(A
Development Stage Company)**
 **NOTES
TO FINANCIAL STATEMENTS**
 **March
31, 2005**
 **(Unaudited)**
 
 **4.**
    **EXPENSES**
 
 The
principal items of expense included on the statement of operations and deficit
are presented below:
 
 Three
      Month Periods EndedMarch
      31, 2005
    
    March
      31, 2004Rent
    
    $
    57,613
    
    $
    4,025Depreciation
      and amortization
    
    
    5,540
    
    
    5,540Professional
      fees
    
    
    4,965
    
    
    7,675Salaries
    
    
    4,350
    
    
    4,553Other
      expenses
    
    
    3,521
    
    
    787Total
      expenses
    
    $
    75,989
    
    $
    22,580
 
 **5.**
    **TOKYO
      OFFICE**
 
 During
the quarter ended March 31, 2005, the Company leased an office and an apartment
in Tokyo. Monthly rent is $12,500 for the apartment and $1,925 for the office.
Security deposits totaling $138,595 were paid during the quarter.
  8
 Table of Contents
 
 ITEM 2.
MANAGEMENT'S DISCUSSIONAND OR PLAN OF OPERATION
 
 Cautionary
Statement
 
 SAFE
HARBOR
 
 This Form
10QSB contains "forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E the Securities Exchange
Act of 1934, as amended and such forward-looking statements are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. "Forward-looking statements" describe future expectations, plans, results,
or strategies and are generally preceded by words such as "may," "future,"
"plan" or "planned," "will" or "should," "expected," "anticipates," "draft,"
"eventually" or "projected." You are cautioned that such statements are subject
to a multitude of risks and uncertainties that could cause future circumstances,
events, or results to differ materially from those projected in the
forward-looking statements, including the risks that actual results may differ
materially from those projected in the forward-looking statements as a result of
various factors, and other risks identified in a companies' annual report on
Form 10-KSB and other filings made by such company with the United States
Securities and Exchange Commission. You should consider these factors in
evaluating the forward-looking statements included herein, and not place undue
reliance on such statements.
 
 The
following discussion should be read in conjunction with the Company's Financial
Statements, including the Notes thereto, appearing elsewhere in this Quarterly
Report and in the Annual Report for the year ended December 31,
2004.
   COMPANY
OVERVIEW
 
 The
Company is a development stage company and significant risks exist with respect
to its business. It has acquired the exclusive, worldwide license rights to a
high temperature furnace, a hot water boiler, and ring-tube desalination
methodology. At this time, the Company is not engaged in the commercial sale of
any of its licensed technologies. Its operations to date have been limited to
acquiring the technologies, conducting limited product marketing, and testing
the technologies for commercial sale. For each such technology, proto-type or
demonstrational units have been constructed by each licensor or inventor of the
technology. The Company has conducted various internal tests on these units to
determine the commercial viability of the underlying technologies. As a result
of such testing, the Company believes that the products are not commercially
ready for sale, and that product refinements are necessary with respect to each
of the technologies. In addition, the Company may seek joint venture or other
affiliations with companies competitive in each respective product market
whereby the Company can capitalize on the existing infrastructure of such other
companies, such as product design and engineering, marketing and sales, and
warranty and post-warranty service and repair. The Company believes that its
marketing efforts to sell any of its products will be limited until such time as
it can complete the refinements of its technologies. The Company can not predict
whether it will be successful in developing commercial products, or establishing
affiliations with any operating company.
  9
 Table of Contents
 ****
 PRODUCTS
 
 Amanasu
Furnace
  The
Amanasu furnace is a waste disposal system that safely and efficiently disposes
of toxic and hazardous wastes. The system has three general features; the
proprietary combustion burner, the furnace compartment, and the gas processing
compartment.
 The
Company believed that the prior pricing structure for its furnaces was not
competitive, and it was seeking ways to lower its manufacturing costs. In an
effort to lower manufacturing costs, the Company was attempting to locate
alternate suppliers that were less costly than currently identified suppliers.
It also would attempt to re-design certain components of the furnace so as to
reduce the manufacturing cost per component. However, even though the Company
has made a great effort to meet its goal, the Company has been confronted with
several difficulties and has started reconsidering to alter the function of
original furnace which manages daily wastes to a furnace which particularly
manages specific waste such as industrial and medical waste, and simultaneously,
the Company also seeks to potential manufacturers and/or organizations to sell
right for them to utilize the Company’s patented technologies and adopt the
technologies to their own use and benefit. Additionally, the Company has entered
into an agreement with a furnace producing company, Kogure Works Co, Ltd., with
34 years of successful business history, has more advanced technologies of
furnac in Japan, and its furnace is produced comparatively in less-cost. The
pricing of the product is $100,000/t and eventually reducing the price to 20%
less is ideal. A formal agreement has been entered into by Kogure Works Co.,
Ltd. and the Company, and the Company has funded $290,000 to Kogure for the
purpose of promotion of Kogure’s incinerator to State Environmental Protection
Administration of China and to receive a purchase order from the organization.
The Company will cooperate with Kogure to succeed on this project and expand its
market place in Asia. The Company can not predict whether it will be successful
in the alternation of structure and achieve its desired pricing.
 
 
 Fire
Bird Boiler.
 
 The Fire
Bird Boiler technology is a patented process which incinerates whole waste tires
in a non polluting manner emitting heat or steam in the incineration process.
The technology provides for combustion efficiency and seeks to minimize dioxin
generation which is generally a by-product of imperfect combustion.
 
 The
Company believes that the Fire Bird Boiler is an effective technology for the
dual purpose of incinerating waste tires and generating heat. However, the
Company has recognized that the supply of waste tires in certain markets,
including the United States, has been greatly reduced due to the effect of
recent efforts to recycle waste tires. Thus, the reduction in the available
supply of waste tires in these markets has limited the market potential of the
boiler. As a result, the Company has been confronted with severe marketing
difficulties for Fire Bird at present, and will seek to refine the boiler to
accept other forms of waste including hazardous waste. The Company projects that
necessary refine time will be enormous to estimate, therefore the Company will
see how things go thoroughly and determine the appropriate time to finance for
the refinement. The Company might need to utilize Kogure’s manufacturing
facility and equipment for the case of production. However the detailed
projection has not been discussed yet at this present time.
 The
Company will have no relationship with its former manufacturing company,
Ishimaki Seiki in Ishimaki-city, Japan. Alternatively, the Company may
sub-contract the assembly and component manufacturing to firms located in
proximity to its customer so as to eliminate excessive shipping charges.
However, no such arrangements have been established by the Company at this
time.
 10
 Table of Contents
 
 Ring-tube
Desalinization Equipment
  The
Ring-Tube technology is used as a filter to purify seawater into drinking water
and also treats sewage and wastewater, by removing pollutants and bacteria. The
equipment filters bacteria and other impurities through its fine rings and comb
type filter and reduces the presence of inhibiting scales on the equipment. The
impurities are then destroyed by the high pressure and temperature in the
ring-tube. The Company believes that its technology is more cost efficient to
construct and operate than conventional RO equipment. Its fresh water recovery
rate is 95% compared with less than 40% for a RO method. Moreover, water
produced from the Company's technology retains a certain amount of salt and
minerals and does not required a pH adjustment. RO filtration removes all
minerals and salt, requiring minerals to be added to improve flavor, and an
adjustment to reduce pH levels. The reject brine resulting from RO filtration is
discharged in the ocean creating higher salt concentrations in such areas,
however, the by-product from the Company's technology is sufficiently condensed
allowing it to be sold as a salt product.
 
 The
Company believes that the existing capacity of the Ring-Tube Desalination
equipment is commercially insufficient for its targeted markets because the
equipment is a hand-made manufacturing and it leads high cost production. Also
there are many similar production companies which promote water purification
systems in Japan therefore reducing the cost of manufacturing is the key to
succeed in the competitive market. Consequently, the Company has entered into an
agreement with Shinwa Yosetsu, a subcontract manufacturing company which can
manage Sakagami’s technology under the instruction that may result in less-cost
production. The Company joint and cooperate with Shinwa Yosetsu investing
$100,000 to establish a new company for the joint venture project to progress
complete manufacturing and sales plan. This technology has not been commercially
produced yet.
 
 
 PLAN OF
OPERATION
 
 The
Company was aware of an option of business cooperation with a company in the
same industry. The Company has entered into an agreement with a furnace
producing company, Kogure Works Co, Ltd., with 34 years of successful business
history and has more advanced technologies of furnace with less-cost production
in Japan, and its consideration of cooperation with them investing the capital
of $290,000.
 The
Company has entered into an agreement for co-establishing a new company with
Shinwa Yosetsu, a subcontract company of manufacturing Water desalination
system. The Company has financed approximately $100,000 for the co-establishing
a new company with Shinwa Yosetsu.
 
 Other
than the provision of alternating business planning costs discussed above, the
Company estimates that its operating overhead, which includes general and
administrative charges, will be approximately $150,000 for the next 12 months.
This amount is comprised of the following estimated costs; $80,000 in annual
salaries for office personnel and consultants, $70,000 for rent, $20,000 for
professional fees and $12,000 for miscellaneous expenses. The Company does not
anticipate paying salaries to any of its officers for the next 12 months. The
Company has sufficient cash on hand to support its overhead for the next 12
months but no material commitments for capital at this time other than as
described above.
 
 MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
 
 The
Company did not generate any revenues for the three months ended March 31, 2005
or for the same period in 2004 except for interest earned in bank deposits in
the amount of $1,105 and $78 respectively.
 
 11
 Table of Contents
 
 Total
expenses for the three months period ending March 31, 2005 was $75,989 compared
to $22,580 for the same period of 2004. The increase was due principally to
higher rent, the result of opening a Tokyo office during the
quarter.
 
 The
Company sold 1,000,000 shares of its common stock to Hisako Kodaka and obtained
yielding proceeds of $3,500,000 during the first tree months of 2005. The
Company believes that the amount of liquidity and capital resources will be
sufficient for the operation of the Company for next 12 months.
 
 
 LIQUIDITY
AND CAPITAL RESOURCES
 
 In the
three months ended March 31, 2005 cash used in operating activities was $69,068
compared to $ 15,015 for the same period in 2004. The increase was due to
increase in rent and salaries.
 
 In the
three months ended March 31, 2005, there were cash used in investing or
financing activities. On March 8, the Company entered into an agreement with
Kogure Works. Co., LTD. to fund $290,000 to Kogure for the purpose of promotion
of Kogure’s incinerator to State Environmental Protection Administration of
China and to receive a purchase order from the organization. And on March 8,
2005 the Company also entered into an agreement with Shinwa Yosetsu to fund
$100,000 to establish a new company in order to conduct a project. That purpose
of this project is to establish facilities to manufacture plants of water
purification system and/or sea water desalination system and open the market in
various countries in Asia. The Company paid above mentioned amount to the
parties respectively.
 
 OFF-BALANCE
SHEET ARRANGEMENTS
 
 The
Company has no off-balance sheet arrangements.
 
 
 Item 3. Effectiveness of the registrant's disclosure controls and
procedures
 ****
 EVALUATION
OF DISCLOSURE CONTROLS AND PROCEDURES
 
 The
Company carried out an evaluation of the effectiveness of the Company's
disclosure controls and procedures (as defined by Rule 13a-15(e) under the
Securities Exchange Act of 1934) under the supervision and with the
participation of the Company's Chief Executive Officer and Chief Financial
Officer as of a date within 90 days of the filings date of Form 10QSB. Based on
and as of the date of such evaluation, the aforementioned officers have
concluded that the Company's disclosure controls and procedures have functioned
effectively so as to provide information necessary whether:
 
 (i) this
quarterly report on Form 10 QSB contains any untrue statement of a material fact
or omits to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not misleading
with respect to the period covered by this quarterly report on Form 10 QSB,
and(ii) the financial statements, and other financial information included in
this quarterly report on Form 10 QSB, fairly present in all material respects
the financial condition, results of operations and cash flows of the Company as
of, and for, the periods presented in this quarterly report on Form 10
QSB.
  12
 Table of Contents
 
 CHANGES
IN INTERNAL CONTROLS
 
 There
have been no significant changes in the Company's internal controls or in other
factors since the date of the Chief Executive Officer's, Chief Financial
Officer's and Chief Accounting Officer's evaluation that could significantly
affect these internal controls, including any corrective actions with regards to
significant deficiencies and material weaknesses.
 
 
 PartII  OTHER INFORMATION
 
 Item
1.   Legal Proceedings.
 
 None
 
 Item
2.   Changes in Securities.
 
 None
 
 Item
3.   Defaults upon Senior Securities.
 
 None
 
 Item
4.   Submission of Matters to a Vote of Securityholders.
 
 None
 
 Item
5.   Other Information.
 
 None
 
 Item 6.
Exhibits.
 
 (a).
Furnish the Exhibits required by Item 601 of Regulation S-B.
 
 Exhibit 31- Certification Pursuant To Section 302 Of The Sarbanes-Oxley
Act Of 2002.
 
 Exhibit 32- Certification Pursuant To Section 906 Of The Sarbanes-Oxley
Act Of 2002.
 
 (b)
Reports on Form 8-K.
 On March
8, 2005, Amanasu Environment Corporation ("the Company") entered into an
agreement with Kogure Works. Co., LTD. ("Kogure”) to fund $290,000 to Kogure for
the purpose of promotion of Kogure’s incinerator to State Environmental
Protection Administration of China and to receive a purchase order from the
organization.
 
 On March
8, 2005, Amanasu Environment Corporation ("the Company") entered into an
agreement with Shinwa Yosetsu ("Shinwa Yosetsu”) to fund $ 100,000 to establish
a new company in order to conduct a project. The purpose of this project is to
establish facilities to manufacture plants of water purification system and/or
sea water desalination system and open the market in various countries in
Asia.
  13
 Table of Contents
 
 SIGNATURES
 
 In
accordance with the requirements of the Exchange Act, the registrant caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.
 
 AMANASU
ENVIRONMENT CORPORATION
 
 Date: May
10, 2005
 
 /s/
Atsushi Maki
 _______________________________
 Atsushi
Maki
 Chief
Executive Officer
 Chief
Financial Officer
 Chief
Accounting Officer
  14