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|   | 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) |   |

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AMA

|                                                                                                                                                             | **PART1-FINANCIAL                  INFORMATION**                                           |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                             |                                                                                       |   |
| Item                  1:                                                                                                                                         | FINANCIAL                  STATEMENTS:                                                     |   |
|                                                                                                                                                             |                                                                                       |   |
| Balance                Sheets as of June 30, 2005 (unaudited) and December 31, 2004                (audited)                                                     | 4                                                                                          |
|                                                                                                                                                             |                                                                                       |   |
| Statement                  of Operations and Deficit Accumulated for the six months ended                  June 30,                  2005 and 2004 (unaudited)   | 5                                                                                          |
|                                                                                                                                                             |                                                                                       |   |
| Statement                  of Operations and Deficit Accumulated for the three months ended                  June 30,                  2005 and 2004 (unaudited) | 6                                                                                          |
|                                                                                                                                                             |                                                                                       |   |
| Statement                of Cash Flows for the three months ended June 30, 2005 and 2004                (unaudited)                                              | 7                                                                                          |
|                                                                                                                                                             |                                                                                       |   |
| Notes                to Financial Statements (unaudited)                                                                                                         | 8                                                                                          |
|                                                                                                                                                             |                                                                                       |   |
|                                                                                                                                                             |                                                                                       |   |
| Item                  2:                                                                                                                                         | MANAGEMENT’S                  DISCUSSION AND OR PLAN OF OPERAITON                    | 10     |
|                                                                                                                                                             |                                                                                       |   |
|                                                                                                                                                             |                                                                                       |   |
| Item                  3:                                                                                                                                         | EFFECTIVENESS                  OF THE REGISTRANT’S DICLOSURE CONTROLS AND PROCEDURES | 14     |
|                                                                                                                                                             |                                                                                       |   |
|                                                                                                                                                             |                                                                                       |   |
|                                                                                                                                                             | **PART2-OTHER                  INFORMATION**                                               |   |
|                                                                                                                                                             |                                                                                       |   |
| Item                  1:                                                                                                                                         | LEGAL                  PROCEEDINGS                                                         | 14     |
|                                                                                                                                                             |                                                                                       |   |
| Item                  2:                                                                                                                                         | CHANGES                  IN SECURITEIS                                                     | 14     |
|                                                                                                                                                             |                                                                                       |   |
| Item                  3:                                                                                                                                         | DEFAULTS                  UPON SENIOR SECURITES                                            | 14     |
|                                                                                                                                                             |                                                                                       |   |
| Item                  4:                                                                                                                                         | SUBMISSION                  OF MATTERS TO VOTE OF SECURITEY HODERS                         |   |
|                                                                                                                                                             |                                                                                       |   |
| Item                  5:                                                                                                                                         | OTHER                  INFORMATION                                                         | 14     |
|                                                                                                                                                             |                                                                                       |   |
| Item                  6:                                                                                                                                         | EXHIBITS                  AND REPORTS ON FORM 8-K                                          | 15     |
|                                                                                                                                                             |                                                                                       |   |
|                                                                                                                                                             |                                                                                       |   |
| SIGNATURES                                                                                                                                                       | 15                                                                                         |

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Table              of Contents

**PART1-FINANCIAL        INFORMATION**

| ITEM                  1. | FINANCIAL                  STATEMENTS |
|--------------------------|---------------------------------------|

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Table            of Contents

**AMANASU        ENVIRONMENT CORPORATION**

**(A        Development Stage Company)**

**BALANCE        SHEETS**

**(Unaudited)**

|                                                                                                                                                                              |   | June                  30, 2005   |                      | December                  31, 2004 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------------------------|-----------------------------------------|--------|
|                                                                                                                                                                              |   |  (Unaudited)                          |                      |  (Audited)                         |   |
| ASSETS                                                                                                                                                                            |   |                                       |                      |                                    |   |
| Current                  Assets:                                                                                                                                                  |   |                                       |                      |                                    |   |
| Cash                                                                                                                                                                              |   | $                                          | 350,                  533 |                                    | $      | 9,459 |   |
| Miscellaneous                  receivables                                                                                                                                        |   |                                       | 95,885                    |                                    |   | 1,885 |   |
| Total                  current assets                                                                                                                                             |   |                                       | 446,418                   |                                    |   | 11,344 |   |
|                                                                                                                                                                              |   |                                       |                      |                                    |   |   |   |
| Fixed                  Assets:                                                                                                                                                    |   |                                       |                      |                                    |   |   |   |
| Automotive                  equipment                                                                                                                                             |   |                                       | 25,859                    |                                    |   | 25,859 |   |
| Demonstration                  equipment                                                                                                                                          |   |                                       | 400,000                   |                                    |   | - |   |
| Total                  equipment                                                                                                                                                  |   |                                       | 425,859                   |                                    |   | 25,859 |   |
| Less                  accumulated depreciation                                                                                                                                    |   |                                       | 13,573                    |                                    |   | 12,685 |   |
| Net                  fixed assets                                                                                                                                                 |   |                                       | 412,286                   |                                    |   | 13,174 |   |
|                                                                                                                                                                              |   |                                       |                      |                                    |   |   |   |
| Other                  Assets:                                                                                                                                                    |   |                                       |                           |                                    |   |  |   |
| Certificate                  of deposit                                                                                                                                           |   |                                       | 2,000,000                 |                                    |   | - |   |
| Rent                  deposits                                                                                                                                                    |   |                                       | 143,595                   |                                    |   | 5,000 |   |
| Investments                                                                                                                                                                       |   |                                       | 390,000                   |                                    |   | - |   |
| Licensing                  agreement, net of accumulated amortization                  of $54,661 and $44,470                                                                     |   |                                       | 291,839                   |                                    |   | 302,030 |   |
|                                                                                                                                                                              |   |                                       |                      |                                    |   |   |   |
| Total                  other assets                                                                                                                                               |   |                                       | 2,825,434                 |                                    |   | 307,030 |   |
| Total                  Assets                                                                                                                                                     |   | $                                          | 3,684,138                 |                                    | $      | 331,548 |   |
|                                                                                                                                                                              |   |                                       |                      |                                    |   |   |   |
| LIABILITIES                  AND STOCKHOLDERS’ EQUITY                                                                                                                       |   |                                       |                      |                                    |   |   |   |
| Current                  Liabilities:                                                                                                                                             |   |                                       |                      |                                    |   |   |   |
| Accrued                  expenses                                                                                                                                                 |   | $                                          | 10,654                    |                                    | $      | 2,990 |   |
| Stockholder                  advance                                                                                                                                              |   |                                       | 100                       |                                    |   | 100 |   |
| Total                  current liabilities                                                                                                                                        |   |                                       | 10,754                    |                                    |   | 3,090 |   |
|                                                                                                                                                                              |   |                                       |                      |                                    |   |   |   |
| Stockholders’                  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                    |                                    |   | 43,021 |   |
| Additional                  paid-in capital                                                                                                                                       |   |                                       | 4,356,919                 |                                    |   | 857,919 |   |
| Deficit                  accumulated during the development stage                                                                                                                 |   |                                       | (727,556                  | )                                       |   | (572,482 | ) |
| Total                  stockholders’ equity                                                                                                                                 |   |                                       | 3,673,384                 |                                    |   | 328,458 |   |
| Total                  Liabilities and Stockholders’ Equity                                                                                                                 |   | $                                          | 3,684,138                 |                                    | $      | 331,548 |   |

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Table            of Contents

**AMANASU        ENVIRONMENT        CORPORATION**

**(A        Development Stage Company)**

**STATEMENTS        OF OPERATIONS AND DEFICIT**

**ACCUMULATED        DURING DEVELOPMENT STAGE**

**(Unaudited)**

|                                                                            |   |  Six                  Month Periods Ended June 30,  |       | February                  22, 1999(Date                  of Inception) |   |
|---------------------------------------------------------------------------------|--------|---------------------------------------------------------------|------------|------------------------------------------------------------------------|--------|
|                                                                            |   | 2005                                                     |       | 2004                                                                   |   | To                  June 30, 2005 |   |
| Expenses                                                                        |   | $                                                             | 169,148    |                                                                   | $      | 58,065 |   | $ | 745,098 |   |
| Operating                  loss                                                 |   |                                                          | (169,148   | )                                                                      |   | (58,065 | ) |   | (745,098 | ) |
|  Other                  Income - interest                                  |   |                                                          | 14,074     |                                                                   |   | 206 |   |   | 17,542 |   |
|                                                                            |   |                                                          |       |                                                                   |   |   |   |   |   |   |
| Loss                  accumulated during development stage                      |        | $                                                             | (155,074   | )                                                                      | $      | (57,859 | ) | $ | (727,556 | ) |
|                                                                            |   |                                                          |       |                                                                   |   |   |   |   |   |   |
| Loss                  Per Share -                                               |   |                                                          |       |                                                                   |   |   |   |   |   |   |
| Basic                  and Diluted                                              |   | $                                                             | -          |                                                                   | $      | - |   |   |   |   |
|                                                                            |   |                                                          |       |                                                                   |   |   |   |   |   |   |
| Weighted                  average number                  of shares outstanding |   |                                                          | 43,893,744 |                                                                   |   | 43,020,816 |   |   |   |   |

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Table            of Contents

**AMANASU        ENVIRONMENT CORPORATION**

**(A        Development Stage Company)**

**STATEMENTS        OF OPERATIONS AND DEFICIT**

**ACCUMULATED        DURING DEVELOPMENT STAGE**

**(Unaudited)**

|                                                                            |   |  Three                  Month Periods Ended June 30, |       | February                  22, 1999(Date                  of Inception) |   |
|---------------------------------------------------------------------------------|--------|-----------------------------------------------------------|------------|------------------------------------------------------------------------|--------|
|                                                                            |   | 2005                                                      |       | 2004                                                                   |   | To                  June 30, 2005 |   |
| Expenses                                                                        |   | $                                                         | 93,159     |                                                                   | $      | 35,407 |   | $ | 745,098 |   |
| Operating                  loss                                                 |   |                                                      | (93,159    | )                                                                      |   | (35,407 | ) |   | (745,098 | ) |
| Other                  Income - interest                                        |   |                                                      | 12,969     |                                                                   |   | 50 |   |   | 17,542 |   |
|                                                                            |   |                                                      |       |                                                                   |   |   |   |   |   |   |
| Loss                  accumulated during development stage                      |   | $                                                         | (80,190    | )                                                                      | $      | (35,357 | ) | $ | (727,556 | ) |
|                                                                            |   |                                                      |       |                                                                   |   |   |   |   |   |   |
| Loss                  Per Share -                                               |   |                                                      |       |                                                                   |   |   |   |   |   |   |
| Basic                  and Diluted                                              |   | $                                                         | -          |                                                                   | $      | - |   |   |   |   |
|                                                                            |   |                                                      |       |                                                                   |   |   |   |   |   |   |
| Weighted                  average number                  of shares outstanding |   |                                                      | 44,020,816 |                                                                   |   | 43,020,816 |   |   |   |   |

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**AMANASU        ENVIRONMENT CORPORATION**

**(A        Development Stage Company)**

**STATEMENTS        OF CASH FLOWS**

**(Unaudited)**

|                                                                                      |   | Three                  Month Periods Ended                  June 30, |       | February                  22, 1999(Date                  of Inception)To                  June 30, |   |
|-------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------------------|--------|
|                                                                                      |   |  2005                                                           |       | 2004                                                                                               |   | 2005 |   |
| **CASH                  FLOWS FROM OPERATIONS:**                                          |   |                                                            |       |                                                                                          |   |    |   |
| Net                  Loss                                                                 |   | $                                                                    | (155,074   | )                                                                                                  | $      | (57,859 | ) | $ | (727,556 | ) |
| Charges                  Not Requiring The Outlay Of Cash:                                |   |                                                                 |       |                                                                                               |   |   |   |   |   |   |
| Depreciation                  and amortization                                            |   |                                                                 | 11,079     |                                                                                               |   | 11,065 |   |   | 68,234 |   |
| Services                  provided for common stock                                       |   |                                                                 | **-**      |                                                                                               |   | - |   |   | 70,000 |   |
| Changes                  in Assets and Liabilities:                                       |   |                                                                 |       |                                                                                               |   |   |   |   |   |   |
| Increase                  in accrued expenses                                             |   |                                                                 | 7,664      |                                                                                               |   | 432 |   |   | 10,654 |   |
| Increase                  in miscellaneous receivables                                    |   |                                                                 | (49,000    | )                                                                                                  |   | (400 | ) |   | (95,885 | ) |
|                                                                                      |   |                                                                 |       |                                                                                               |   |   |   |   |   |   |
| **Net                  Cash Consumed By****Operating                  Activities**        |   |                                                                 | (230,331   | )                                                                                                  |   | (46,762 | ) |   | (674,553 | ) |
|                                                                                      |   |                                                                 |       |                                                                                               |   |   |   |   |   |   |
| **CASH                  FLOWS FROM INVESTING ACTIVITIES:**                                |   |                                                                 |       |                                                                                               |   |   |   |   |   |   |
| Investment                  in certificate of deposit                                     |   |                                                                 | (2,000,000 | )                                                                                                  |   | - |   |   | (2,000,000 | ) |
| Acquisition                  of licensing agreement                                       |   |                                                                 | -          |                                                                                               |   | - |   |   | (155,000 | ) |
| Investments                  in joint ventures                                            |   |                                                                 | (390,000   | )                                                                                                  |   | - |   |   | (390,000 | ) |
| Purchase                  of automobile                                                   |   |                                                                 | -          |                                                                                               |   | **-** |   |   | (25,859 | ) |
| Purchase                  of operation equipment                                          |   |                                                                 | (400,000   | )                                                                                                  |   | - |   |   | (400,000 | ) |
| Rent                  deposits                                                            |   |                                                                 | (138,595   | )                                                                                                  |   | - |   |   | (143,595 | ) |
|  **Net                  Cash Consumed By****Investing                  Activities**  |   |                                                                 | (2,928,595 | )                                                                                                  |   | - |   |   | (3,114,454 | ) |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES:**                                |   |                                                                 |       |                                                                                               |   |   |   |   |   |   |
| Sales                  of common stock                                                    |   |                                                                 | 3,500,000  |                                                                                               |   | - |   |   | 4,139,440 |   |
| Advances                  received in anticipation of common                  stock sales |   |                                                                 | -          |                                                                                               |   | - |   |   | 100 |   |
| **Net                  Cash Provided By****Financing                  Activities**        |   |                                                                 | 3,500,000  |                                                                                               |   | - |   |   | 4,139,540 |   |
|                                                                                      |   |                                                                 |       |                                                                                               |   |   |   |   |   |   |
| Net                  change in cash                                                       |   |                                                                 | 341,074    |                                                                                               |   | (46,762 | ) |   | 350,533 |   |
| Cash                  balance, beginning of period                                        |   |                                                                 | 9,459      |                                                                                               |   | 92,055 |   |   | - |   |
| Cash                  balance, end of period                                              |   | $                                                                    | 350,533    |                                                                                               | $      | 45,293 |   | $ | 350,533 |   |

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**AMANASU        ENVIRONMENT CORPORATION**

**(A        Development Stage Company)**

**NOTES        TO FINANCIAL STATEMENTS**

**June        30, 2005**

**(Unaudited)**

**BASIS        OF PRESENTATION**

**INVESTMENTS**

** **

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**AMANASU        ENVIRONMENT CORPORATION**

**(A        Development Stage Company)**

**NOTES        TO FINANCIAL STATEMENTS**

**June        30, 2005**

**(Unaudited)**

**         EXPENSES**

|                                           |   | Six                  Month Periods Ended |    |
|------------------------------------------------|--------|------------------------------------------|---------|
|                                           |   | June                  30, 2005           |    | June                  30, 2004 |   |
|                                           |   |                                     |    |   |   |
| Rent                                           |   | $                                        | 99,942  |   | $ | 17,430 |   |
| Depreciation                  and amortization |   |                                     | 11,079  |   |   | 11,079 |   |
| Professional                  fees             |   |                                     | 6,210   |   |   | 7,675 |   |
| Salaries                                       |   |                                     | 8,700   |   |   | 8,903 |   |
| Travel                                         |   |                                     | 10,198  |   |   | 356 |   |
| Consulting                                     |   |                                     | 20,000  |   |   | - |   |
| Other                  expenses                |   |                                     | 13,019  |   |   | 12,622 |   |
| Total                  expenses                |   | $                                        | 169,148 |   | $ | 58,065 |   |

| **4.** | **SUPPLEMENTAL                  DISCLOSURES OF CASH FLOWS                  INFORMATION** |
|--------|------------------------------------------------------------------------------------------|

| **5.** | **RELATED                  PARTY TRANSACTIONS** |
|--------|-------------------------------------------------|

| **6.** | **CAPITAL                  STOCK** |
|--------|------------------------------------|

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Table            of Contents

| ITEM                2: | MANAGEMENT                  DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF                  OPERATIONS |
|------------------------|-------------------------------------------------------------------------------------------------------------------------|

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| Item3:  | EFFECTIVENESS                  OF THE REGISTRANT’S DISCLOSURE CONTROLS AND                  PROCEDURES |
|--------------|--------------------------------------------------------------------------------------------------------------|

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**PART2-OTHER          INFORMATION**

| Item                    1. | LEGAL                    PROCEEDINGS |
|----------------------------|--------------------------------------|

| Item                    2. | CHANGES                    IN SECURITEIES |
|----------------------------|-------------------------------------------|

| Item                    3. | DEFAULTS                    UPON SENIOR SECURITEIS |
|----------------------------|----------------------------------------------------|

| Item                    4. | SUBMISSION                    OF MATTERS TO A VOTE OF                    SECURITYHOLDERS |
|----------------------------|------------------------------------------------------------------------------------------|

| Item                    5. | OTHER                    INFORMATION |
|----------------------------|--------------------------------------|

| Item                    6. | ESHIBITS |
|----------------------------|----------|

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SIGN

| Date:                  August 10, 2005    |   |
|-------------------------------------------|--------|
|                                      |   |
| /s/                  Atsushi Maki         |   |
| Atsushi                  Maki             |   |
| Chief                  Executive Officer  |   |
| Chief                  Financial Officer  |   |
| Chief                  Accounting Officer |   |

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