<PAGE>   1

                     U.S. 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 quarterly period ended March 31, 2001

                                       OR

              [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
               For the transition period from ________ to ________


                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
             (Exact name of registrant as specified in its charter)


     Texas                    333-48659                        73-1537206
     -----                    ---------                       ------------
   (state of           (Commission File Number)               (IRS Employer
 incorporation)                                                I.D. Number)


                                521 Delia Street
                               Longview, TX 75601
                                  800-522-7841

              ----------------------------------------------------
             (Address and telephone number of registrant's principal
               executive offices and principal place of business)

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 twelve 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. Yes  X   No
                                       ---
As of March 31, 2001, there were 12,292,994 shares of the Registrant's Common
Stock, par value $0.001 per share, outstanding.

Transitional Small Business Disclosure Format (check one):  Yes      No  X
                                                                ---     ---



<PAGE>   2

                         PART I - FINANCIAL INFORMATION


ITEM 1. FINANCIAL STATEMENTS


                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                            CONDENSED BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                          March 31, 2001 (Unaudited)   December 31, 2000
                                                                          --------------------------   -----------------
<S>                                                                            <C>                         <C>
                         ASSETS
CURRENT ASSETS
  Cash and Cash Equivalents                                                    $   309,790                 $   428,478
  Accounts Receivable, Less Allowance of $44,000                                    79,007                      52,961
  Note receivable - related party                                                   26,932                      36,231
  Inventory                                                                        750,094                     795,857
  Prepaid Insurance                                                                  3,338                       3,858
                                                                               -----------                 -----------
      Total Current Assets                                                       1,169,161                   1,317,385
                                                                               -----------                 -----------

PROPERTY AND EQUIPMENT AT COST
  Property and Equipment                                                           106,827                     104,865
  Accumulated Depreciation and Amortization                                        (20,166)                    (15,042)
                                                                               -----------                 -----------
      Net Property and Equipment                                                    86,661                      89,823
                                                                               -----------                 -----------

OTHER ASSETS
  Prepaid Royalties                                                                514,000                     514,000
  Patents and Licenses                                                           2,435,000                   2,435,000
  Less:  Accumulated Amortization                                                 (389,053)                   (348,466)
                                                                               -----------                 -----------
      Total Other Assets                                                         2,559,947                   2,600,534
                                                                               -----------                 -----------

TOTAL ASSETS                                                                   $ 3,815,769                 $ 4,007,742
                                                                               ===========                 ===========

                     LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
  Accounts Payable                                                             $    31,029                 $    59,186
  Accrued Payroll                                                                   20,009                      23,428
  Notes Payable - Current Portion                                                    3,567                       3,128
                                                                               -----------                 -----------
      Total Current Liabilities                                                     54,605                      85,742
                                                                               -----------                 -----------

LONG-TERM LIABILITIES
  Notes Payable - Less Current Portion                                              44,169                      45,611
                                                                               -----------                 -----------

STOCKHOLDERS' EQUITY
  Preferred stock, par value $.001; 10,000,000
    shares authorized, no shares issued                                                  --                          --
  Common stock, par value $.001; 40,000,000
    shares authorized, 12,292,994 & 12,092,994
    shares issued and outstanding respectively                                     12,294                      12,094
  Additional Paid in Capital                                                     6,736,935                   6,637,135
  Deficit Accumulated in Development Stage                                      (3,032,234)                 (2,772,840)
                                                                               -----------                 -----------
      Total Stockholders' Equity                                                 3,716,995                   3,876,389
                                                                               -----------                 -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                     $ 3,815,769                 $ 4,007,742
                                                                               ===========                 ===========
</TABLE>



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



                                       2
<PAGE>   3
                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                Three Months Ended
                                                                     March 31                   Period from
                                                           ------------------------------    August 31, 1997 to
                                                              2001              2000            March 31, 2001
                                                           ------------      ------------    -------------------
<S>                                                        <C>               <C>               <C>
SALES                                                      $     42,982      $     16,803      $    500,287
COST OF SALES                                                    35,070             8,393           175,270
                                                           ------------      ------------      ------------
GROSS PROFIT                                                      7,912             8,410           325,017
                                                           ------------      ------------      ------------
OPERATION EXPENSES
  Advertising and marketing                                      23,136            66,893            39,693
  Amortization                                                   40,587            40,587           398,750
  Audit Fees                                                     16,565            20,060            82,630
  Automobile expense                                              6,721             8,745            85,530
  Bad debt expense                                                   --             2,516            48,435
  Commissions                                                        --             6,309            37,494
  Consulting fees                                                 4,508                --            11,125
  Contract services                                                 585                --            32,588
  Contributions                                                     482             1,200             4,247
  Damaged Goods                                                   3,093                --            32,675
  Depreciation                                                    5,124             4,194            13,944
  Dues and subscriptions                                          1,609               532            70,914
  Freight and delivery                                            5,548            13,686           616,502
  Insurance                                                       9,270             6,738            36,428
  Legal and professional fees                                     2,193             2,928            30,387
  Licenses and permits                                               --               651            69,437
  Miscellaneous                                                   7,644                40           464,834
  Office expenses                                                 7,299            11,231            67,535
  Officer compensation                                           46,258            49,067           114,719
  Payroll taxes                                                   7,302             3,898            41,993
  Printing and reproduction                                       3,799            10,928            12,324
  Rent                                                            8,872            10,800            42,010
  Repairs                                                         5,195             2,330           132,614
  Research and development                                       13,048                42            48,429
  Royalties                                                          22                --            23,101
  Salaries - Office                                              25,836            22,188            35,560
  SEC Expense                                                       300             3,023           268,674
  Seminars and training                                             160             2,385            74,368
  Set Up Costs                                                    7,939                --            16,187
  Start Up Costs                                                     --                --             9,491
  Taxes                                                              --                --             7,418
  Telephone and utilities                                         8,128             9,430            98,259
  Travel and entertainment                                       10,727            15,400           189,344
  Warranty expense                                                   --               518            18,409
                                                           ------------      ------------      ------------
      Total operating expense                                   271,950           316,319         3,276,048
                                                           ------------      ------------      ------------

NET EARNINGS (LOSS) FROM OPERATIONS                            (264,038)         (307,909)       (2,951,031)

OTHER INCOME
  Interest income                                                 5,572             2,597            49,901
  Interest expense                                                 (928)           (1,629)          (11,777)
  Gain/Loss on Sale of Asset                                         --            (2,241)           (8,477)
  Miscellaneous                                                      --                --             8,744
                                                           ------------      ------------      ------------
      Total other income (expense)                                4,644            (1,273)           38,391
                                                           ------------      ------------      ------------

NET LOSS BEFORE CUMULATIVE EFFECT OF THE
CHANGE IN ACCOUNTING PRINCIPLE                                 (259,394)         (309,182)       (2,912,640)
                                                           ------------      ------------      ------------

Cumulative effect on prior years of the change
in accounting principle, net of tax                                  --                --          (119,594)
                                                           ------------      ------------      ------------

NET LOSS                                                   $   (259,394)     $   (309,182)     $ (3,032,234)
                                                           ============      ============      ============

NET LOSS PER SHARE BEFORE CUMULATIVE
EFFECT OF THE CHANGE IN ACCOUNTING PRINCIPLE               $      (0.02)     $      (0.03)     $      (0.36)
                                                           ============      ============      ============

Cumulative effect on prior years of the change in
accounting principle                                                 --                --             (0.02)

NET EARNINGS (LOSS) PER SHARE                              $      (0.02)     $      (0.03)     $      (0.38)
                                                           ============      ============      ============

WEIGHTED AVERAGE SHARES                                      12,165,216        10,825,813         7,925,676
</TABLE>




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




                                       3
<PAGE>   4
                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                    Three Months Ended
                                                                          March 31             Period from
                                                              ----------------------------  August 31, 1997 to
                                                                 2001             2000        March 31, 2001
                                                              -----------      -----------    --------------
<S>                                                           <C>              <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net loss                                                    $  (259,394)     $  (309,182)     $(3,032,234)
  Adjustments to reconcile net earnings (loss) to cash
    used in operating activities
  Amortization                                                     40,587           40,587          398,750
  Bad debt expense                                                     --               --           48,435
  Cumulative effect of change in accounting principle                  --               --          119,594
  Depreciation                                                      5,124            4,194           34,706
  Loss on sale of equipment                                            --            2,241            8,477
  Common stock issued for services                                     --               --           67,494
  Change in assets and liabilities
    Accounts receivable                                           (26,046)          14,774         (163,673)
    Note receivable                                                 9,299               --            9,299
    Inventory                                                      45,763          (33,542)        (750,094)
    Prepaid insurance                                                 520            1,693           (3,338)
    Prepaid royalties                                                  --               --         (514,000)
    Accounts payable                                              (28,157)          38,292           31,029
    Accrued liabilities                                            (3,419)           2,431           20,009
                                                              -----------      -----------      -----------
      Net cash used in operating activities                      (215,723)        (238,512)      (3,725,546)
                                                              -----------      -----------      -----------

CASH FLOWS FROM INVESTING ACTIVITIES
  Acquisition of property and equipment                            (1,962)         (22,880)         (69,408)
  Organization costs                                                   --               --         (129,291)
  Acquisition of licenses                                              --               --          (60,000)
                                                              -----------      -----------      -----------
      Net cash used in investing activities                        (1,962)         (22,880)        (258,699)
                                                              -----------      -----------      -----------

CASH FLOWS FROM FINANCING ACTIVITIES
  Loan proceeds                                                        --               --            6,554
  Loan principal repayments                                        (1,003)          (6,311)         (19,254)
  Loan principal repayments - related party                            --               --         (150,000)
  Proceeds from sale of stock                                     100,000          775,000        4,456,735
                                                              -----------      -----------      -----------
      Net cash provided by financing activities                    98,997          768,689        4,294,035
                                                              -----------      -----------      -----------

NET INCREASE (DECREASE) IN CASH                                  (118,688)         507,297          309,790

Cash - Beginning of Period                                        428,478          585,857               --
                                                              -----------      -----------      -----------

Cash - End of Period                                          $   309,790      $ 1,093,154      $   309,790
                                                              ===========      ===========      ===========
</TABLE>




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


                                       4
<PAGE>   5




                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                        NOTES TO THE FINANCIAL STATEMENTS
                                   (Unaudited)



The balance sheet of Summit Environmental Corporation, Inc., the "company", at
December 31, 2000 has been taken from the company's audited financial statements
at that date. The balance sheet at March 31, 2001, the statement of operations
for the three months ended March 31, 2001 and the three months ended March 31,
2000 and the period from August 31, 1997, to March 31, 2001, and the statement
of cash flows for the three months ended March 31, 2001 and the three months
ended March 31, 2000 and the period from August 31, 1997 to March 31, 2001 have
been prepared by the company without audit. The financial statements have been
prepared in conformity with generally accepted accounting principles and contain
such adjustments as management feels are necessary to present fairly, in all
material aspects, the financial position and results of operation of the
company.

1.       SIGNIFICANT ACCOUNTING POLICIES

         Business Activity

         Summit Environmental Corporation, Inc. (the "company") was organized in
         accordance with the Business Corporation Act of the State of Texas on
         February 2, 1998, for the purpose of merging (the "merger") with Summit
         Technologies, Inc., a Texas corporation. The company continued to exist
         as the surviving corporation under its present name pursuant to the
         provisions of the Texas Business Corporation Act. The merger was
         effected on December 2, 1998 as a tax-free reorganization accounted for
         as a pooling of interests.

         The company markets fire suppression materials, environmentally safe
         cleaning chemicals, and natural, botanical cosmetic products. The
         products are proprietary or are under exclusive license. Marketing
         efforts include "infomercials" and other television and radio
         promotion, videotapes, and personal demonstrations. Products are
         marketed domestically and internationally.

         Revenue Recognition

         Revenues from sales of materials and products are recorded at the time
         the goods are shipped or when title passes.

         Cash

         The company maintains cash balances at financial institutions located
         in Longview, Texas, which at times may exceed federally insured limits.
         The company has not experienced any losses in such accounts and
         believes it is not exposed to any significant credit risk on cash and
         cash equivalents.

         For purposes of the statement of cash flows, the company considers all
         highly liquid investments with a maturity of three months or less when
         purchased to be cash equivalents.


                                       5
<PAGE>   6



                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                        NOTES TO THE FINANCIAL STATEMENTS
                                   (Unaudited)


         Inventory

         Inventory is recorded at the lower of cost or market, with the cost
         being determined by the first-in, first-out method.

         Intangible Assets

         Patents and licenses costs are recorded at cost. Amortization is
         computed on the straight-line method over fifteen years.

         Income Taxes

         Deferred income taxes are determined using the liability method under
         which deferred tax assets and liabilities are determined based upon
         differences between financial accounting and tax bases of assets and
         liabilities.

         Property and Equipment

         Depreciation and amortization are provided in amounts sufficient to
         relate the cost of depreciable assets to operations over their
         estimated service lives by the straight-line method.

         Leasehold improvements are amortized over the lives of the respective
         leases or the service lives of the improvements, whichever is shorter.

         Major repairs or replacements of property and equipment are
         capitalized. Maintenance, repairs and minor replacements are charged to
         operations as incurred.

         When units of property are retired or otherwise disposed of, their cost
         and related accumulated depreciation are removed from the accounts and
         any resulting gain or loss is included in operations.


         The estimated service lives used in determining depreciation and
         amortization are:

<TABLE>
<CAPTION>
      Description                                       Estimated Service Life
      -----------                                       ----------------------
<S>                                                     <C>
      Automobiles                                                      5 years
      Office furniture and equipment                                   5-7 years
      Leasehold improvements                                           4 years
</TABLE>



                                       6
<PAGE>   7



                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                        NOTES TO THE FINANCIAL STATEMENTS
                                   (Unaudited)


         Advertising and Marketing

         Advertising and marketing costs are expensed as incurred, which totaled
         $23,136 and $66,893 for the first quarters of 2001 and 2000,
         respectively.

         Use of Estimates

         The preparation of financial statements in conformity with generally
         accepted accounting principles requires management to make estimates
         and assumptions that affect certain reported amounts and disclosures.
         Accordingly, actual results could differ from those estimates.

         Per Share Information

         Per share information is based on the weighted average number of common
         stock and common stock equivalent shares outstanding. Only basic
         earnings per share are shown, as there are no dilutive items.

2.       PATENT

         On November 2, 1998, the company purchased via issuance of common stock
         and a note payable, patent rights and intellectual property to various
         fire suppression products for a purchase price of $2,375,000. This
         purchase required cash payments of $500,000 and 875,000 shares of
         common stock of the company to be issued and delivered to BioGenesis
         Enterprises, Inc.

3.       LICENSES

         Licenses for exclusive marketing rights to various products have been
         acquired for fees totaling $60,000 from a related party. The company is
         the manufacturer/supplier of the products.

4.       LEASES

         The company is obligated under various operating leases for equipment,
         vehicles, and office and warehouse space. Rent expense for all
         operating leases was $8,872 and $10,800 for the first quarters of 2001
         and 2000, respectively.




                                       7
<PAGE>   8



                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                        NOTES TO THE FINANCIAL STATEMENTS
                                   (Unaudited)


5.       COMMON STOCK

         Private Placement

         During the first quarter of 2001, the board approved a private
         placement offering for 250,000 shares of common stock at $0.50 per
         share. 200,000 of these shares were issued during the first quarter.

         Common Stock Options

         The sole director and stockholders approved the 1998 Stock Option Plan
         (the "Plan") of the company whereby, at the discretion of the directors
         or of a Stock Option Committee appointed by the board of directors,
         invited employees of the company or directors of the company or
         consultants to the company will have the option of subscribing to
         common shares of the company based on a price determined by the
         directors or Stock Option Committee. The number of shares subject to
         the Plan is 500,000.

         In September 1999, the Board of Directors issued options to purchase
         350,000 shares of common stock to employees and directors pursuant to
         the Plan.

         Warrants

         During the first quarter of 2001, the company issued warrants to
         acquire 100,000 shares of common stock at $1.00 per share, exercisable
         through January 31, 2004 in conjunction with the above mentioned
         private placement.

6.       RELATED PARTY TRANSACTIONS

         The following transactions occurred between the company and related
         parties:

         The company and another business with common shareholders share office
         space and the related expenses.

         The company acquired a patent from BioGenesis Enterprises, Inc.
         (BioGenesis) on November 2, 1998 (see Note 2). The purchase agreement
         requires the company to pay BioGenesis a periodic royalty of $.50 per
         16-oz. can and an equivalent (approximately 7 percent) on all other
         product categories using the fire suppressant technology. One-half of
         all periodic royalty fees due to BioGenesis will be credited against
         the advance royalty fee (until fully recovered) and one-half will be
         paid to BioGenesis in cash on the 30th of each month based upon
         invoiced sales through



                                       8
<PAGE>   9



                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                        NOTES TO THE FINANCIAL STATEMENTS
                                   (Unaudited)


         the close of the preceding month. The company has prepaid royalties to
         BioGenesis totaling $514,000 as of both December 31, 2000 and March 31,
         2001.

7.       CONCENTRATIONS

         Approximately 83 percent of the sales in the first quarter of 2001 were
         made to two customers and 99 percent of the sales in the first quarter
         of 2000 were made to three different customers.

8.       INCOME TAXES

         Deferred tax assets and liabilities are determined based on the
         differences between the financial statement and tax bases of assets and
         liabilities as measured by the currently enacted tax rates. Deferred
         tax expense or benefit is the result of the changes in deferred tax
         assets and liabilities.

         Deferred income taxes and liabilities arise principally from the
         temporary differences between financial statement and income tax
         recognition of depreciation and amortization, bad debts and net
         operating losses.

9.       NOTES PAYABLE

         As of March 31, 2001, the company was obligated under one note payable,
         due currently, described as follows:

<TABLE>
<CAPTION>
                                                                                              Monthly
            Creditor                       Collateral        Maturity        Interest Rate    Payment       Total
            --------                       ----------        --------        -------------    -------       -----
<S>                                         <C>             <C>             <C>               <C>           <C>
            Austin Bank                    Motorhome         04-07-05        9.0%               $644       $47,736
                                                                                                            (3,567)
            Less current portion                                                                           -------
                                                                                                           $44,169
                                                                                                           =======
</TABLE>



                                       9
<PAGE>   10




ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

         The following discussion and analysis should be read in conjunction
with the financial statements and the accompanying notes thereto and is
qualified in its entirety by the foregoing and by more detailed financial
information appearing elsewhere. See "Item 1. Financial Statements."

         RESULTS OF OPERATIONS - FIRST QUARTER OF 2001 COMPARED TO FIRST QUARTER
         OF 2000

         Summit Environmental's revenues for Q1 2001 were 256 percent over Q1
2000--$42,982 in Q1 2001 compared to $16,803 in Q1 2000. Gross margin was 18.4
percent for Q1 2001 compared to 50.1 percent for Q1 2000. Sales have not yet
reached a level to reflect a gross margin percentage with accuracy.

         Operating expenses dropped 14.0 percent during Q1 2001 over Q1 2000.
Operating expenses decreased by $44,369 from $316,319 in Q1 2000 to $271,950 in
Q1 2001.

         Amortization and depreciation were $45,711 in Q1 2001 and $44,781 in Q1
2000.

         Summit had a net loss from operations of $259,394 for Q1 2001, down
from a net loss of $309,182 for Q1 2000, a $49,788 or a 16.1 percent decrease.

         OVERVIEW

         Last year, the company moved toward finalizing some of the distribution
negotiations and product certifications. Its vision continues to be marketing
the company's products through strategic alliances.

         Management has held fast to the theme of establishing a sound retail
pricing structure for FIREPOWER 911(TM). Very early, the company was successful
in getting FIREPOWER 911(TM) approved by Wal-Mart on a regional basis, first,
and then elevated to full category status. Existing purchase orders were in
hand.

         However, management was not comfortable on issues such as the terms for
continuing fulfillment, insufficient timing for completion of orders based on
manufacturing criteria unique to FIREPOWER 911(TM), and the possibility of
delayed payments regardless of contractual terms. When the discounting of
FIREPOWER 911(TM) was taken into consideration, management was not willing to
jeopardize long-term success for short-term gain. Therefore, an agenda was
developed to first introduce FIREPOWER 911(TM) through marketing venues where
discount pricing was not the primary negotiating factor.

         The company set out to place FIREPOWER 911(TM) into a retail
environment where pricing was not an issue to its success. When initial sales
were made to grocery supply companies, grocery stores and convenience stores,
there was no effective marketing/merchandising follow-up network in place to


                                       10
<PAGE>   11

facilitate the in-store service requirement held by the large store chains
across the country. The existing agreement with Convenience Service Group did
not meet the criteria and was terminated in order that the company could take a
new direction with FIREPOWER 911(TM).

         Still believing in the uniqueness of an aerosol product providing
safety and ease of use for all consumers, the company negotiated an agreement
with a firm, Triple-S Marketing, to provide the in-store service required by
some of the nation's larger retailers. The company focused on Triple-S because
of its emphasis on home improvement stores. One such national chain has approved
FIREPOWER 911(TM) for its stores, scheduled to appear in July/August 2001. The
store and its locations will be made public when the appropriate time occurs.

         The company is also in the negotiation stage for the sale of FIREPOWER
911(TM) for placement in military base stores. The company has been notified
that the first purchase orders should be in place the week of May 21, 2001.

         Last year, the first shipment of FIREPOWER 911(TM) was packaged for
international sales with foreign language labels. Initial first market shipments
ranging from 2,000 to 5,000 cans went to Chile, Hong Kong and Japan. On May 1,
2001, the company was notified that the paperwork and letter of credit for a
30,000-can order were being prepared. This product is to be sold to the public
by the local fire departments in Chile. The company and Marketing Perspectives
Incorporated ("MPI") will be satisfying labeling requirements and insurance
requests for completed product liability coverage. The order is anticipated to
be as early as June 2001.

         Last year, the company was notified by a direct home product television
sales channel that FIREPOWER 911(TM) would be part of its programming in 2001.
QVC and Shop at Home notified the company that product approval has been
completed. QVC is seeking a letter of verification that FIREPOWER 911(TM) is
validated for sales in all 50 states. The company has such a letter posted on
its web site and is awaiting the formal request from QVC's legal department.

         Shop at Home's home products buyer conducted a conference call with
management in April 2001. The conclusion of the meeting was that a contract was
to be prepared and sent to the company. The company has no definite date to
report at this time on either venue.

         The company's strategic alliance partner, International Aero, Inc., is
the world's largest reconfiguration company for commercial aircraft. The company
and International Aero have been working on the minimum performance standards
requirements established by the Federal Aviation Administration. Previously, the
handheld fire extinguishers onboard all commercial aircraft contained Halon
1211. The Geneva Peace Conference banning of Halon 1211 included a catastrophic
exposure clause called Mission Critical that allowed the airline industry an
extension of time before these extinguishers faced mandated replacement. The
testing protocol for selecting the replacement agent has been published by the
FAA. FLAMEOUT(R) meets all of the technical criteria required by the performance
standards. Last year, the actual Gross Volume Production Tests of FLAMEOUT(R) on
jet fuel and heptane were conducted. The initial performance tests will be
conducted at International Aero's new licensed fire testing facility. During
2001, the FAA project will be accelerated.



                                       11
<PAGE>   12



         International Aero's distribution rights extend to the aviation
industry, the United States Military, and the United States Gulf Coast petroleum
industry. In conjunction with the research department at International Aero, the
company is developing an alternative to another fire-fighting agent, AFFF. AFFF,
used primarily for petroleum fires, is a known cancer-causing agent. The
company's intent with International Aero is to develop a non-toxic,
non-corrosive, biodegradable alternative for AFFF. Last year, FLAMEOUT II(TM)
was tested at the Ansul fire test facility in Marinette, Wisconsin. The foam
stability test was very successful. Additionally, FLAMEOUT II(TM) was the only
product tested to pass the UL162 encapsulation and emulsification test. This new
formula is being tested by Jockel Manufacturing in Germany and by the National
State Fire Department and Testing Agency in Brazil.

         The company has developed a non-toxic, biodegradable turbine cleaner
for use on jet engines. In only fifteen minutes, ULTIMATE CLEAN 668(TM) can
remove enough residue from jet engine blades that the next flight would
experience fuel savings sufficient to pay for the expense of the cleaning. The
cleaning of the engines on planes is required as regular periodic maintenance.
When fuel savings are considered, this means savings for the airlines. The
recent increase in jet fuel costs has heightened the airlines' interest in
ULTIMATE CLEAN 668(TM). Currently used products produce a run-off residue with
contamination by metal particles that find their way into the groundwater.
ULTIMATE CLEAN 668(TM) has been in an arduous testing procedure and has been
approved as non-corrosive regarding eight different metals. With the completion
of the corrosive metals tests, actual onboard tests will begin in order for the
company to obtain a military specification number for ULTIMATE CLEAN 668(TM).
The protocol under which ULTIMATE CLEAN 668(TM) is now being tested is for
multiple applications and is expected to culminate in a military specification
number. The use of this product will allow commercial airline companies to be in
compliance with the newly mandated EPA Water Runoff Quality Standards. The
alternatives for the airlines are very costly measures that would affect every
department of their operations. Continued use of the corrosive cleaners would
require the cleanings to be performed in designated cleaning areas, away from
the airlines' operations.

         Additionally, the Department of Defense ("DOD") is also involved with
this testing and approval. The original direction of ULTIMATE CLEAN 668(TM) was
for the commercial airline industry. The DOD's involvement has increased the
company's potential market by another 50 percent from the original projections
based on International Aero's customer base.

         Also incorporated into the test of the company's Type III concentrate
was the addition of Type II concentrate and Type II ready-to-use tests for
additional approvals. These additional approvals also increase the size of the
market for the product and the amounts of product to be used.

         The company concedes that this testing process has been very tedious
and time-consuming. The reward for the company will be a head start in the
market. Regardless of the unknowns with which the company has dealt, the company
and its product have not experienced any setbacks and are moving closer to an
expected final Quality Products Listing in second quarter of 2001. The lab
conducting the test protocols for the MIL-PRF-85704C has notified the company
that ULTIMATE CLEAN 668(TM) has successfully conformed with the requirements for
corrosion, crazing, painted surfaces, acrylic surfaces, and water and acid
stability. The storage stability test is the final remaining requirement and is
now



                                       12
<PAGE>   13



classified as "accelerated storage stability." The company and International
Aero are making preliminary plans for initial marketing announcements in June
and initial sales in July.

         Through its South American alliance partner, the company submitted
material, product, and previous certifications to the authorities in Chile and
Argentina in order to obtain the appropriate approvals and ratings with each
country. The company's existing certifications on both FIREPOWER 911(TM) and
FLAMEOUT(R) have been accepted. Last year, the actual state fire department
tests began taking place.

         In Brazil during May 2001, it is anticipated that FLAMEOUT(R) will
receive its official government registration number. This will clear the way for
the company to begin sales through Marketing Perspectives Incorporated ("MPI").
Their distributor in Brazil has orders to be filled promptly when the
certification process is completed. This approval will also be accepted in the
other Mercosur Pact countries--Argentina, Uruguay and Paraguay.

         FIREPOWER 911(TM) was successfully tested in Chile. The first product
was shipped last year for the initial test market, under the Spanish label
"FIREPOWER LIQUIDO 911(TM)." During May 2001, MPI expects to be given the final
approval for the first custom order of FIREPOWER 911(TM) one-liter fire
extinguishers. These cans, when produced, will bear the name of local
distributors and will be printed in Spanish. The initial order will be for
30,000 cans.

         OUTLOOK

         The statements made in this Outlook are based on current plans and
expectations. These statements are forward looking, and actual results may vary
considerably from those that are planned.

         The company believed that, with the approval, listing and rating of
FIREPOWER 911(TM) as a fire extinguisher, a niche market could be created. This
was supported by actions taken by the USEPA, which has been mentioned
previously, and actions of the Connecticut State Fire Marshal's Office and the
California State Fire Marshal's Office. Last year, the company sought additional
enforcement by other state fire marshals' offices.

         The formula for FIREPOWER 911(TM) and FLAMEOUT(R) is one of only a few
suppressing agents certified by the EPA as a replacement for the globally banned
fire agent, Halon 1211. Initially, the Connecticut State Fire Marshal's Office
notified the company that its aerosol fire suppressant, FIREPOWER 911(TM), was
to be removed from the shelves of Home Depot, because it was not listed and
rated as a fire extinguisher. All other aerosol can products representing that
they were fire extinguishers were also to receive the same notification. While
the company was not marketing FIREPOWER 911(TM) as a fire extinguisher at that
time, the other aerosol fire suppressors subject to this action were touting
their products to be fire extinguishers.

         Due to the capabilities of FLAMEOUT(R), the company applied for the
minimum fire extinguisher rating in order to establish FIREPOWER 911(TM) as a
fire extinguisher and satisfy the State Fire Codes. The



                                       13
<PAGE>   14

specific fire code is ANSI/UL8 and ANSI/UL711, set forth in the NFPA Standard
10. NFPA 10 establishes the requirements for listing and rating portable fire
extinguishers.

         The company has completed the listing and rating requirements, placing
FIREPOWER 911(TM) in a class of its own, the only listed and rated fire
extinguisher in an aerosol can available in the global marketplace.
Subsequently, the company received a letter from the Connecticut State Fire
Marshal's Office certifying that the company's FIREPOWER 911(TM) had satisfied
their fire code requirements.

         California has a unique legislative requirement in addition to the NFPA
and ANSI/UL standards for portable fire extinguishers. This is a new area,
termed Non-Halon Certification, and means that any portable fire extinguisher
whose marketing intent is directed to the residential and individual use market
must contain a formula that has been certified as Non-Halon. FLAMEOUT(R) is the
first of seven permanent listed and certified replacements for Halon 1211. It is
the only product that can meet this California requirement due to the type of
approval for FLAMEOUT(R). The approval is for residential as well as commercial
use. All other products are approved for commercial use only. Applied Research
Laboratories has completed the application process on behalf of the company,
meeting the California Non-Halon requirements.

         With these requirements, approvals, listings, certifications, and
confirmations, the company has positioned FIREPOWER 911(TM) to become the only
product that can be sold in the retail residential market in California. The
completion of this certification will place FIREPOWER 911(TM) as the only
product that has survived this process, according to the California State Fire
Marshal's Office.

         In other states where Non-Halon certification has not become effective
to date, there is still the NFPA 10 requirement that all aerosol cans must be
tested, listed, and rated as a fire extinguisher. FIREPOWER 911(TM) is the only
product that possesses the validated listing and rating for an aerosol fire
extinguisher. Last year, the company sought additional enforcement action when
the company became aware of "copycat" products of FIREPOWER 911(TM). Mass
merchandisers and direct response television companies were forced to remove
products from their programs. After months of pursuing requested enforcement
action, the company made significant stride in establishing commitments from
marketing and merchandising groups.

         Several issues have slowed down the marketing of FIREPOWER 911(TM). Its
formula is FLAMEOUT(R), a technology for fire suppression, not merely soap in an
aerosol can. A specific type of aluminum is required for the container to meet
the ANSI/UL8 portion of the validation and listing tests. The size and type of
can required to hold the FLAMEOUT(R) by the very rigid standard for fire
extinguishers is not manufactured in the United States. The company must bring
the empty shells in from Madrid, Spain.

         These production issues, plus the manufacturing efforts to produce a
product with a five-year shelf life, and royalties paid to the testing
laboratory calculated on each unit are examples of the unique requirements for
the pricing of the company's fire extinguishers.



                                       14
<PAGE>   15



         When attempts to market a product like FIREPOWER 911(TM) are met with
"copycats" which have not passed the scrutiny of the validations, listings and
ratings, an education issue is created which must be carried out at the buyers'
level. For this education effort to have meaningful effect, enforcement action
is required by the state fire marshals' offices. These enforcement actions are
public record. The company now has its marketing and merchandising
representatives equipped with information showing the buyers that there are
issues other than the cheapest product in an aerosol can.

         Presenting the information in this format last year, the company
negotiated an agreement with a national marketing and merchandising company,
Triple S Marketing, that places the products they represent into two of the
largest home building products stores in the country. The senior buyer for one
of these chains of stores has approved FIREPOWER 911(TM). A redesign of the home
safety products section is scheduled to begin in May 2001. Currently, FIREPOWER
911(TM) is scheduled to appear in July 2001 in these stores.

         Over three years ago, the company negotiated a contract with Wal-Mart
on a regional basis in Florida, Southern Georgia and Southeastern Alabama. When
a category buyer from Wal-Mart decided to remove FIREPOWER 911(TM) from the
regional purchasing agreement and take it to a full category purchase,
management was forced to "not fill" in-hand purchase orders. Full category meant
supplying as many as 4,000 stores in a brief time. However, the major obstacle
was the fourteen day fulfillment deadline on new purchase orders. The time
required for the manufacturing of the shells for FIREPOWER(TM) is five weeks.
Management knew that the initial news of the Wal-Mart contract would be great
for the new public company, but failure to meet unrealistic production
requirements would be extremely detrimental.

         During the last week of April 2001, a Wal-Mart opportunity once again
presented itself. Through one of the company's direct dealers, FIREPOWER 911(TM)
has once again been approved for Wal-Mart. However, this time it is on a local
store district purchase program. Once the contract starts, it cannot be changed
for six months. The completed applications, initial insurance certification, and
bar codes registrations were sent to the district supervision level for a
specific region of Wal-Mart on May 1, 2001.

         Another nationwide marketing company that merchandises products into
military base stores and does "in and outs" with the large mass merchandisers, J
and S Sales and Marketing, presented FIREPOWER 911(TM) in January and February
of 2001, after receiving initial approvals and submitting FIREPOWER 911(TM) for
quality analysis with two companies. On March 14, 2001, FIREPOWER 911(TM) was
approved with Army-Air Force Exchange Services ("AAFES") to go into 160 military
PX stores worldwide.

         The marketing of FIREPOWER 911(TM) in the roofing industry by the
company's strategic alliance partner, Proformance Marketing, began a nationwide
campaign late last year. Bradco is the initial roofing supply company taking
FIREPOWER 911(TM) into all of its 82 distribution centers. It is one of the
three largest roofing product distributors in the United States. Similar
campaigns will be initiated with the other two largest companies after
Proformance Marketing completes implementation and training of Bradco's
personnel.



                                       15

<PAGE>   16



         FLAMEOUT(R) has been submitted to the United States Forestry Service
through its technology development program in order to satisfy the requirements
for qualification testing as a Wildland Fire Chemical. This test protocol will
be ongoing for eighteen months. The company will be in line to secure the
approval of FLAMEOUT(R) in second quarter 2002.

         FLAMEOUT(R) will be tested as a wetting agent and fire suppression
foam. When approved, FLAMEOUT(R) can be used in catastrophic wildfires that
occur every year. The company's product, in unofficial tests, has outperformed
every product with which it has been compared. Management knows this first-hand
from being on the actual fire lines in Florida. This will become a large venue
for product sales beginning with the 2002 fire season.

         The company has been in negotiations with QVC for the sale of FIREPOWER
911(TM) since October 2000. FIREPOWER 911(TM)'s front runner, Chief's Choice,
was the initial aerosol fire suppressant sold on QVC. While FIREPOWER 911(TM)
was going through the validation and listing process at Applied Research
Laboratories, "ARL," QVC was notified of the NFPA standards requirement held by
State Fire Marshals' offices and substituted another "copycat" product for
Chief's Choice, which also violated the requirements for which the company had
chosen to qualify in order to be in compliance in all 50 states. Last year, this
"copycat" product was removed from programming at QVC, due to action taken by
the Texas State Fire Marshal's office and the company was notified that the
category buyers at QVC had approved FIREPOWER 911(TM) one-liter rated fire
extinguisher for purchase. The company was told that once the legal department
was cleared, scheduling of programming and initial purchases would begin. During
April 2001, the company was notified that the QVC legal department would be
requesting a letter of verification that FIREPOWER 911(TM) is legal in all 50
states. The company is awaiting the official request from QVC's legal
department. However, a letter stating this verification is currently posted on
the company's web site, www.seci-us.com.

         The company's test for securing the military specification number
MIL-PRF-85704C, which will enable the company's ULTIMATE CLEAN 668(TM) jet
engine cleaner to be listed with the Department of Defense, Quality Products
Listing, has proceeded into classification tests for Type II concentrates and
Type II ready-to-use. The testing for this non-corrosive approval has resulted
in some adjustments to the formula for the test on ceramic and acrylic finishes.
This test is also being done in the "water soluble" category. To the company's
knowledge, there are no other products that are aqueous-based which can
accomplish the cleaning requirements of the test protocol or the actual engine
cleanings. The expanding from the initial Type III approvals to include the two
categories of Type II greatly increased the market potential for ULTIMATE CLEAN
668(TM). Final stages and certification are expected in second quarter 2001. The
company, through its strategic alliance partner, International Aero, has initial
sales to be made to major airlines such as United, Continental, Delta, Northwest
and Eastern airlines. The recent increase in jet fuel costs has heightened the
airlines' interest in ULTIMATE CLEAN 668(TM).



                                       16
<PAGE>   17
         On May 2, 2001, the company was notified that in the testing for
corrosion, painted surfaces, acrylics, salt water and acid stability, ULTIMATE
CLEAN 668(TM) has conformed to the required protocol. The storage test is
currently underway and is now classified as "accelerated storage stability." The
company and International Aero anticipate that June approvals and releases are
forthcoming, with initial sales in July.

         International marketing agreements were negotiated and executed last
year. A key element of these agreements is the revenue sharing clause that
provides the company profit sharing from the tools, devices or mechanisms into
which FLAMEOUT(R) is introduced for resale. Global agreements reached last year
included the formation of Summit Environmental Europe BV, South Africa and
Canada. The company has assisted its distributor partners with necessary
testing, listing, ratings and certification in order to complete the
registration process in each of these countries.

         During February 2001, the company sold its first order of FIREPOWER
911(TM) to its distributor, Techno-Supplies, in Norway. In April 2001,
Techno-Supplies ordered its first shipment of FLAMEOUT(R). A portion of this
initial order has been sold to Exxon of Norway. The company has been notified
that its official government product registration number for FLAMEOUT(R) in
Brazil will be issued in May 2001. Sales orders are already in place through
strategic alliance partner, MPI, and are awaiting release of this number.

         May 1, 2001, the company was notified that the long-awaited Chile order
for 30,000 cans of FIREPOWER 911(TM) should begin production in four to six
weeks.

         The company's development of ULTIMATE ABSORB 1103(TM) has led to a
large major corporation's approving the product's use in its manufacturing
process. The company is negotiating a corporate-wide purchasing agreement that
could be announced in the second quarter of 2001. This and other agreements are
dependent on the completion of the never-before-issued EPA Landfill Stamp
approval. ULTIMATE ABSORB 1103(TM) already has EPA (as non-toxic), USDA, FDA,
WHO and California Title 22 approvals. However, the EPA Landfill Stamp allows
for encapsulated and absorbed materials to be deposited in landfills anywhere.
On April 2, 2001, the company was notified that it had successfully stabilized
heavy metals in the hazardous materials containment portion of this testing. No
other product has ever completed this portion of the test protocol. The company
has introduced the absorbent in South America, Scandinavia, Europe and in
several industries within the U.S. The company expects the completion of the EPA
Landfill Stamp in the last half of 2001.

         A company manufacturing a home fire extinguishing unit in Canada has
approved FLAMEOUT(R) over fifteen other products as the product of choice to be
utilized in its system. The Canadian company has completed securing of five
separate patents on the system. The company will be supplying FLAMEOUT(R) for
the Canadian sales and will handle distribution of the units through its other
strategic alliance partners. Initial sales will begin in second quarter 2001.

         The company's future results of operations and the other
forward-looking statements contained in this Outlook involve a number of risks
and uncertainties. Among the factors that could cause actual results to differ
materially are the following: inability of the company to obtain needed
additional



                                       17
<PAGE>   18



capital, loss of personnel - particularly chief executive officer B. Keith
Parker - as a result of accident or for health reasons, interruptions in the
supply of inventory from manufacturers of the inventory, the development of a
competing fire suppressant by a well-capitalized competitor that either is able
to develop a new product with the same attributes as the company's fire
suppressant or is able to discover the additives to the company's fire
suppressant that give it its unique and superior qualities, and an accident
involving life or serious bodily harm that fairly or unfairly would bring into
question the safety of using the company's fire suppressant products.




ITEM 6.                 EXHIBITS AND REPORTS ON FORM 8-K

(a)      EXHIBITS

         None

(b)      FORMS 8-K

         None

                                   SIGNATURES

         Pursuant to the requirements of the Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

Date:  May 10, 2001              Summit Environmental Corporation, Inc.


                                 By /s/ B. Keith Parker
                                   ---------------------------------------------
                                        B. Keith Parker, Chief Executive Officer



                                       18