U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549



FORM 10-QSB

(Mark One)

[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the period ended September 30, 2002.



[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE Act of 1934

For the transition period from ___ to ___.



Commission file number: 0-49719

AMANASU TECHNOLOGIES CORPORATION

(Name of Small Business Issuer in its charter)

Nevada                                                                                                    98- 0351508

(State of                                                                                               (I.R.S. Employer

Incorporation)                                                                                          I.D. Number)



701  5th Avenue, 36th Floor, Seattle, Washington            98109

(Address of principal executive offices)                        (Zip Code)



Issuer's telephone number:  206-262-8188



(Former address and former telephone number, if changed from last report)



Securities registered under Section 12 (b) of the Act:



Title of each class                                                 Name of exchange on which

to be registered                                                     each class is to be registered

None                                                                                 None



Securities registered under Section 12(g) of the Act:

Common Stock

(Title of Class)



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.

(1). Yes: X  No:

(2). Yes: X  No:



The number of shares issued and outstanding of issuer's common stock, $0.001 par value, as of June 30, 2002 was 46,396,400.

Transitional Small Business Issuer Format (Check One):

Yes:      No:  X



INDEX









Page



Balance Sheets as of September 30, 2002 (unaudited) and

December 31, 2001 (audited)

3

Statements of Operations and Deficit Accumulated During

Development Stage-Nine Months ended

September 30, 2002 and 2001

4

Statements of Operations and Deficit Accumulated During

Development Stage-Nine Months ended

September 30, 2002 and 2001

5

Statements of Cash Flows-Nine Months Ended

September 30, 2002 and 2001

6

Notes to Financial Statements

7

Item 2. Management's Discussion and Analysis

8

Item 3. Controls and Procedures

9

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

8

Item 2. Changes in Securities

8

Item 3. Defaults upon Senior Securities

8

Item 4. Submission of Matters to Vote of Securityholders

8

Item 5. Other Information

8

Item 6. Exhibits and Reports on Form 8-K

9

Signatures

9





































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PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.



AMANASU TECHNOLOGIES CORPORATION

(A Development Stage Company)

BALANCE SHEETS



ASSETS



September 30, 2002

December 31,2001

(Unaudited)

(Audited)

Current Assets:

Cash

$267,089

$416,053









Total current assets

267,089

416,053



Other Assets:

Licensing agreement

160,000

160,000

Less, accumulated amortization

16,471

9,412





Total other assets

143,529

150,588





Total Assets

$410,618

$566,641







LIABILITIES AND STOCKHOLDERS EQUITY



Current liabilities:





Amount due for licensing agreement

$  60,000

$160,000

Shareholder deposits for common stock

70,000

-

Total current liabilities



130,000

160,000



Stockholders Equity:

Common stock:  authorized 100,000,000 shares

of $.001 par value; issued and outstanding 

46,386,400 and 46,386,400, respectively

46,386

46,386

Additional paid in capital

401,014

401,014

Deficit accumulated during development stage

(166,782)

(40,759)









Total stockholders equity



280,618

406,641





Total Liabilities and Stockholders Equity

$410,618

$566,641









The accompanying notes are an integral part of these financial statements.



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3



AMANASU TECHNOLOGIES CORPORATION

(A Development State Company)

STATEMENTS OF OPERATIONS AND DEFICIT

ACCUMULATED DURING DEVELOPMENT STAGE

(Unaudited)



Nine Month Periods Ended September 30,

December 1, 1997







(Date of Inception)

2002



2001

To September 30, 2002



Revenue:

Interest income

$     2,207

$    -

$      2,207



Expenses

128,230

7,059

168,989











Loss accumulated

during development

stage



$(126,023)

$(7,059)

$(166,782)





Net loss per share 

Basic and Diluted



$ -

$-





Weighted average

number of shares

outstanding

46,386,400

22,777,778





































The accompanying notes are an integral part of these financial statements.

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4



AMANASU TECHNOLOGIES CORPORATION

(A Development State Company)

STATEMENTS OF OPERATIONS AND DEFICIT

ACCUMULATED DURING DEVELOPMENT STAGE

(Unaudited)



Three Months Ended September 30,

December 1, 1997







(Date of Inception)

2002



2001

To September 30, 2002



Revenue:

Interest income

$      833

$    -

$      2,207



Expenses

39,521

2,353

168,989









Loss accumulated

during development

stage

$(38,688)

$(2,353)

$(166,782)





Net loss per share 

Basic and Diluted

$ -

$-





Weighted average

number of shares

outstanding

46,386,400

28,333,333





































The accompanying notes are an integral part of these financial statements.



-3-

5

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AMANASU TECHNOLOGIES CORPORATION

(A Development State Company)

STATEMENTS OF CASH FLOWS

(Unaudited)











Nine Month Periods

December 1, 1997

Ended September 30,

(Date of Inception)



2002                       2001               To September 30,2002



CASH FLOWS FROM OPERATIONS:

Net loss

$(126,023)

$(7,059)

$(166,782)

Charges not requiring the outlay of cash:

Amortization

7,059

7,059

16,471



Services provided for common stock

-

-

1,300



Net Cash Consumed By

Operating Activities

(118,964)

-



(149,011)



CASH FLOWS FROM INVESTING

ACTIVITIES

Acquisition of licensing agreement

(100,000)

-

(100,000)







Net Cash Consumed By

Investing Activities

(100,000)

-

(100,000)



CASH FLOWS FROM FINANCING

ACTIVITIES:

Issuances of common stock

-

-

446,100

Shareholder deposits for common stock

70,000

-

70,000









Net Cash Provided By

Financing Activities

70,000

-

516,100









Net Change In Cash

(148,964)

-

267,089



Cash balance, beginning of period

416,053

-

-











Cash balance, end of period



$ 267,089

$ -

$ 267,089



















The accompanying notes are an integral part of these financial statements.



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6

AMANASU TECHNOLOGIES CORPORATION

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

September 30, 2002

(Unaudited)









1.

BASIS OF PRESENTATION



The unaudited interim financial statements of Amanasu Technology Corporation (the Company) as of September 30, 2002 and for the three and nine month periods ended September 30, 2002 and 2001 have been prepared in accordance with generally accepted accounting principles.  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 and nine month period ended September 30, 2002  are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2002.



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 for the year ended December 31, 2001.











































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Item 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS



The following discussion should be read in conjunction with the Company 's Financial Statements, including the Notes thereto, appearing elsewhere in this Form 10-QSB.



Company Overview.

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



The Company was organized on December 1, 1997. Its operations to date have been limited to obtaining the sub-license to the technology, and conducting preliminary marketing efforts.



Plan Of Operations.

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

The Company is a development stage corporation. It has not commenced its planned operations of manufacturing and marketing of a lightweight, electrical motor scooter.



In October 2001, the Company received, $400,000 resulting from the exercise of 20,000,000 stock options by the Companys principal shareholder, and $46,000 from four investors. The investors are Mari Kakiuchi, Junko Yamashita, and Kyoko Fujikawa, each of whom acquired 10,000 shares of common stock at $1.00 per share, and Motohiko Sato, who acquired 6,400 shares of common stock, also at $1.00 per share. During the nine months ended September 30, 2002, the Company received $70,000 in subscriptions to purchase common stock of the Company from Hireyuki Shiraishi, and expects to receive an additional $10,000 from such person during the fourth quarter of 2002. The subscriptions were at $1.00 per share. However, a stock certificate relating to such subscriptions has not been issued by the Company, and such share amounts are not reflected in the Companys issued and outstanding shares of common stock stated herein or in its financial statements.



The Companys cash requirements for the next 12 months are estimated to be $1,000,000 which funds will be used to commence its operations. Of this amount, the Company has allocated; $600,000 for initiation and commencement of full scale assembly operations, $100,000 for marketing expenses, and the balance of funds will be used for general overhead expenses. Initiation and commencement of full scale operations represents start-up assembly costs for an assembly plant to be located in Tokyo, such as costs for special assembly machinery and special tooling for parts and supplies, and costs to produce a finished product inventory of approximately 200 scooters. Marketing expenses include costs for printed marketing materials, product demonstrations, trade shows and exhibitions, and travel and entertainment expenses for its initial targeted markets of Japan, China and Taiwan, and Korea. General working needs includes salaries payable to existing and projected staff personnel, andoffice overhead for its Seattle and Tokyo offices. Presently, other than the Companys president, the Company employs two administrative assistants. Projected staff includes a vice president of sales and two other administrative assistants to be located in the Companys Seattle office, and one regional sales manager located in the Tokyo office. In addition to the above expenditures, the

8

Company owes Amanasu Corporation, its largest shareholder, a remaining balance of $60,000 as required under the sub-licensing agreement, which is due on demand. The Company presently maintains sufficient funds to pay the amount if demanded by Amanasu Corporation.



The Company is seeking to raise a minimum of $1,000,000 in the next 12 months to support its working capital needs as described above. The funds may be procured through the public or private offering of its debt or equity securities. Proceeds in excess of $1,000,000, if any, will be held in a working capital reserve to meet the working capital needs of the Company beyond the projected 12 months period. The Company has entered into discussions with a number of investors concerning an investment in the Company, however, at this time it has not received commitments from any source, other than as described above. Although the Company is encouraged by its discussions, with such investors it cannot predict whether it will be successful in raising any capital.



The Company has no material commitments for capital at this time other than as described above. In addition, the Company does not expect to incur research and development costs within the next 12 months.The Company expects to outsource the construction of component parts of its products to third parties as well as the scooter assembly. The Company believes that it can meet product demand from the available manufacturing and assembly resources.



The Company expects to deliver its finished products within one month from order placement and will require customers to pay at least 50% of the purchase price as a down payment for each order.If the Company is successful in raising a maximum of $1,000,000, the Company believes that, this funding, along with bank borrowings, and cash flow from the sale of its products, will enable the Company to maintain its full scale operations for the next 12 months. As of this date, the Company has not established a line of credit with any lending institution. Moreover, the Company cannot predict whether or not it will be successful in its capital raising efforts, and, thus, be able to satisfy its cash requirements for the next 12 months. If the Company is unsuccessful in raising at least $1,000,000, it may not be able to complete its plan of operations as discussed above.



Item 3. CONTROLS AND PROCEDURES.



(a)

The Company maintains controls and procedures designed to ensure that information required to be disclosed in the reports that the Company files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. Based upon their evaluation of those controls and procedures performed within 90 days of the filing date of this report, the chief executive officer and the principal financial officer of the Company concluded that the Company's disclosure controls and procedures were adequate.



(b)

Changes in internal controls. The Company made no significant changes in its internal controls or in other factors that could significantly affect these controls subsequent to the date of the evaluation of those controls by the chief executive officer and principal financial officer.





9

Part II 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 and Reports on Form 8-K..

(a). Furnish the Exhibits required by Item 601 of Regulation S-B.

None.



(b). Reports on Form 8-K.

None.



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 TECHNOLOGIES CORPORATION



/s/ Charlie Lan

Charlie Lan

Chairman, President and                                                         November 14, 2002

Chief Financial Officer































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CERTIFICATION

I, Charlie Lan, certify that:



1. I have reviewed this quarterly report on Form 10-QSB of Amanasu Technologies, Inc.;



2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit 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;



3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;



4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and I have:

a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and

c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;



5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and



6. The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.



Date: November 14, 2002



/s/ Charlie Lan
Charlie Lan.

Chairman, President and



Chief Financial Officer



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