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 September 30, 2004

                                       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)


                              133 East Tyler Street
                               Longview, TX 75601
                                  800-522-7841
              ----------------------------------------------------
             (Address and telephone number of registrant's principal
               executive offices and principal place of business)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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 September 30, 2004, there 23,215,594 were 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>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

PART I - FINANCIAL INFORMATION                                                3

Item 1.  Financial Statements                                                 4

Item 2.  Management's Discussion and Analysis or Plan of Operation           15

Item 3.  Controls and Procedures                                             28

PART II - OTHER INFORMATION                                                  29

Item 1.  Legal Proceedings                                                   29

Item 2.  Unregistered Sales of Equity Securities                             29

Item 3.  Defaults Upon Senior Securities                                     29

Item 4.  Submission of Matters to a Vote of Security Holders                 29

Item 5.  Other Information                                                   30

Item 6.  Exhibits and Reports on Form 8-K                                    30

SIGNATURES                                                                   31


                                       2
<PAGE>

                         PART I - FINANCIAL INFORMATION


ITEM 1.           FINANCIAL STATEMENTS

Condensed Balance Sheets September 30, 2004 (Unaudited) and
    December 31, 2003 (Audited)                                               4
Statements of Operations (Unaudited) Three Months Ended September 30,
    2004 and 2003 and Period from August 14, 1997 to September 30, 2004       5
Statements of Operations (Unaudited) Nine Months Ended September 30,
    2004 and 2003                                                             6
Statements of Cash Flows (Unaudited) Nine Months Ended September 30, 2004
    and 2003 and Period from August 14, 1997 to September 30, 2004            7
Notes to Financial Statements (Unaudited)                                     8



                                       3
<PAGE>

                  SUMMIT ENVIRONMENTAL CORPORATION, INC.
                      (A Development Stage Company)
                            CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                  September 30, 2004   December 31, 2003
                                                                      (unaudited)        (unaudited)
                                                                  ------------------   -----------------
<S>                                                                   <C>                <C>
                                   ASSETS
CURRENT ASSETS
  Cash and Cash Equivalents                                           $    684,943       $    114,054
  Accounts Receivable, Less Allowance of $166,321                           42,281             29,444
  Note receivable - related party, less allowance of 20,496                     --                 --
  Inventory                                                                267,985            209,694
  Prepaid Expenses                                                         119,542             79,916
                                                                      ------------       ------------
      Total Current Assets                                               1,114,751            433,108
                                                                      ------------       ------------

PROPERTY AND EQUIPMENT AT COST
  Property and Equipment                                                    78,505             58,235
  Leasehold Improvements                                                    13,877             13,760
  Accumulated Depreciation and Amortization                                (50,367)           (41,868)
                                                                      ------------       ------------
      Net Property and Equipment                                            42,015             30,127
                                                                      ------------       ------------

OTHER ASSETS
  Prepaid Royalties                                                        511,859            511,859
  Deposits                                                                   2,180              2,180
  Patents and Licenses (net of accumulated amortization of
    $962,979 and $841,227, respectively)                                 1,587,221          1,708,973
                                                                      ------------       ------------
      Total Other Assets                                                 2,101,260          2,223,012
                                                                      ------------       ------------

TOTAL ASSETS                                                          $  3,258,026       $  2,686,247
                                                                      ============       ============

                    LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
  Accounts Payable                                                    $        812       $     71,730
  Notes Payable                                                                                39,500
  Accrued Liabilities                                                       21,364             32,588
                                                                      ------------       ------------
      Total Current Liabilities                                             22,176            143,818
                                                                      ------------       ------------
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, 23,215,594 & 16,899,194
    shares issued and outstanding respectively                              23,216             16,900
  Common stock subscribed                                                                     300,800
  Additional Paid in Capital                                            10,046,548          8,329,609
  Deficit Accumulated in Development Stage                              (6,808,914)        (6,079,880)
  Treasury Stock                                                           (25,000)           (25,000)
                                                                      ------------       ------------
      Total Stockholders' Equity                                         3,235,850          2,542,429
                                                                      ------------       ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                            $  3,258,026       $  2,686,247
                                                                      ============       ============
</TABLE>


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

                                       4
<PAGE>

                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                          (A Development Stage Company)
                       CONDENSED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                         THREE MONTHS ENDED
                                                            SEPTEMBER 30,             PERIOD FROM
                                                    ----------------------------  AUGUST 14, 1997 TO
                                                        2004            2003      SEPTEMBER 30, 2004
                                                    ------------    ------------  ------------------
<S>                                                 <C>             <C>             <C>
SALES                                               $     24,226    $     49,483    $    971,968

COST OF SALES                                             13,762          30,948         776,306
                                                    ------------    ------------    ------------

GROSS PROFIT                                              10,464          18,535         195,662
                                                    ------------    ------------    ------------

OPERATION EXPENSES
  Selling, general, and administrative expenses          248,397         149,309       5,972,151
  Amortization                                            40,584          40,584         972,676
  Depreciation                                             2,805           2,805          75,336
                                                    ------------    ------------    ------------
      Total operating expense                            291,786         192,698       7,020,163
                                                    ------------    ------------    ------------

NET EARNINGS (LOSS) FROM OPERATIONS                     (281,322)       (174,163)     (6,824,501)

OTHER INCOME
  Interest income                                          2,080             171          64,350
  Interest expense                                          (484)             --         (18,037)
  Royalty income                                             574                             574
  Gain/Loss on Sale of Asset                                  --              --          (2,753)
  Miscellaneous                                             (587)             --          30,447
                                                    ------------    ------------    ------------
      Total other income (expense)                         1,583             171          74,581
                                                    ------------    ------------    ------------

NET LOSS BEFORE CUMULATIVE EFFECT OF THE
CHANGE IN ACCOUNTING PRINCIPLE                          (279,739)       (173,992)     (6,749,920)
                                                    ------------    ------------    ------------

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

NET LOSS                                            $   (279,739)   $   (173,992)   $ (6,869,514)
                                                    ============    ============    ============

NET LOSS PER SHARE BEFORE CUMULATIVE
EFFECT OF THE CHANGE IN ACCOUNTING PRINCIPLE        $      (0.01)   $      (0.01)   $      (0.54)

Cumulative effect on prior years of the change in
accounting principle                                          --              --           (0.01)
                                                    ------------    ------------    ------------

NET EARNINGS (LOSS) PER SHARE                       $      (0.01)   $      (0.01)   $      (0.55)
                                                    ============    ============    ============

WEIGHTED AVERAGE SHARES                               20,628,982      16,732,889      12,517,621
</TABLE>

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

                                       5
<PAGE>

                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                          (A Development Stage Company)
                       CONDENSED STATEMENTS OF OPERATIONS
                                   (Unaudited)


                                                          NINE MONTHS ENDED
                                                            SEPTEMBER 30,
                                                   ----------------------------
                                                       2003            2,004
                                                   ------------    ------------
SALES                                              $    163,713    $    137,154

COST OF SALES                                            80,130          78,995
                                                   ------------    ------------

GROSS PROFIT                                             83,583          58,159
                                                   ------------    ------------
OPERATION EXPENSES
  Selling, general, and administrative expenses         681,100         477,415
  Amortization                                          121,752         122,290
  Depreciation                                            8,499           8,415
                                                   ------------    ------------
      Total operating expense                           811,351         608,120
                                                   ------------    ------------

NET EARNINGS (LOSS) FROM OPERATIONS                    (727,768)       (549,961)

OTHER INCOME
  Interest income                                         2,637           1,075
  Interest expense                                       (1,636)             --
  Royalty income                                            574           1,956
  Gain/Loss on Sale of Asset                                 --              --
  Miscellaneous                                          (2,841)             --
                                                   ------------    ------------
      Total other income (expense)                       (1,266)          3,031
                                                   ------------    ------------
NET LOSS BEFORE CUMULATIVE EFFECT OF THE
CHANGE IN ACCOUNTING PRINCIPLE                         (729,034)       (546,930)
                                                   ------------    ------------
Cumulative effect on prior years of the change
in accounting principle, net of tax                          --              --
                                                   ------------    ------------

NET LOSS                                           $   (729,034)   $   (546,930)
                                                   ============    ============
NET LOSS PER SHARE BEFORE CUMULATIVE
EFFECT OF THE CHANGE IN ACCOUNTING PRINCIPLE       $      (0.04)   $      (0.03)

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

NET EARNINGS (LOSS) PER SHARE                      $      (0.04)   $      (0.03)
                                                   ============    ============

WEIGHTED AVERAGE SHARES                              19,193,841      16,087,597


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

                                       6
<PAGE>

                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                              NINE MONTHS ENDED
                                                                SEPTEMBER 30,              PERIOD FROM
                                                          --------------------------   AUGUST 14, 1997 TO
                                                             2004            2003      SEPTEMBER 30, 2004
                                                          -----------    -----------   ------------------
<S>                                                       <C>            <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net loss                                                $  (729,034)   $  (486,330)      $(6,808,914)
  Adjustments to reconcile net earnings (loss) to cash
  used in operating activities
    Amortization                                              121,752        122,290           972,676
    Bad debt expense                                               --             --           200,778
    Provision for inventory losses                                                             364,485
    Cumulative effect of change in accounting principle            --             --           119,594
    Depreciation                                                8,499          8,415            75,336
    Gain (loss) on sale of assets                                  --             --             2,753
    Recission of Lady Burd asset purchase agreement                --             --            50,000
    Common stock issued for services                           89,705          4,200           558,779
    Change in assets and liabilities
      Accounts receivable                                     (12,837)       (91,178)         (258,794)
      Note receivable                                              --             --                --
      Inventory                                               (58,291)        61,598          (726,915)
      Prepaid expenses and deposits                           (39,626)          (632)         (539,136)
      Accounts payable                                        (70,918)         9,933               812
      Accrued liabilities                                     (11,224)           949            21,364
                                                          -----------    -----------       -----------
        Net cash used in operating activities                (701,974)      (370,755)       (5,967,182)
                                                          -----------    -----------       -----------

CASH FLOWS FROM INVESTING ACTIVITIES
  Acquisition of property and equipment                       (20,387)        (2,435)         (107,108)
  Organization costs                                               --             --          (129,291)
  Acquisition of licenses/patents                                  --                         (110,000)
  Proceeds from sale of equipment                                  --             --            47,440
                                                          -----------    -----------       -----------
        Net cash used in investing activities                 (20,387)        (2,435)         (298,959)
                                                          -----------    -----------       -----------

CASH FLOWS FROM FINANCING ACTIVITIES
  Loan proceeds                                                    --             --            46,054
  Loan principal repayments                                   (39,500)            --          (106,490)
  Loan principal repayments - related party                        --             --          (134,265)
  Proceeds from sale of stock                               1,332,750        341,500         7,145,785
                                                          -----------    -----------       -----------
        Net cash provided by financing activities           1,293,250        341,500         6,951,084
                                                          -----------    -----------       -----------

NET INCREASE (DECREASE) IN CASH                               570,889        (31,690)          684,943

Cash - Beginning of Period                                    114,054        195,762                --
                                                          -----------    -----------       -----------

Cash - End of Period                                      $   684,943    $   164,072       $   684,943
                                                          ===========    ===========       -----------

SUPPLEMENTAL CASH FLOW INFORMATION
  Noncash investing and financing activities
    Issuance of 360,000 shares of common stock at
      $0.32 per share for marketing rights                $        --    $   115,200       $   115,200
</TABLE>


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

                                       7

<PAGE>

                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                  NOTES TO THE CONDENSED FINANCIAL STATEMENTS
                               September 30, 2004
                                  (Unaudited)


The balance sheet of Summit Environmental Corporation, Inc., the "company", at
December 31, 2003 has been taken from the company's audited financial statements
at that date. The balance sheet at September 30, 2004, the statement of
operations for the three months and the nine months ended September 30, 2004,
the three months and the nine months ended September 30, 2003 and the period
from August 14, 1997 to September 30, 2004, and the statement of cash flows for
the nine months ended September 30, 2004, the nine months ended September 30,
2003 and the period from August 14, 1997 to September 30, 2004 have been
prepared by the company without audit. The financial statements have been
prepared in conformity with accounting principles generally accepted in the
United States of America for interim financial reporting. Accordingly, they do
not include all of the information and notes required by accounting principles
generally accepted in the United States of America for complete financial
statements. These financial statements 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. Operating results for the
three and nine months ended September 30, 2004 are not necessarily indicative of
the results, which may be expected for the fiscal year ended December 31, 2004.
The interim financial statements should be read in conjunction with the audited
financial statements of the company for the year ended December 31, 2003.

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.


                                       8
<PAGE>

                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                  NOTES TO THE CONDENSED FINANCIAL STATEMENTS
                               September 30, 2004
                                  (Unaudited)

         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.

         The company considers all highly liquid investments with a maturity of
         three months or less when purchased to be cash equivalents.

         Accounts Receivable

         The Company records accounts receivable at net realizable value. This
         value includes an appropriate allowance for estimated uncollectible
         accounts to reflect any loss anticipated on the accounts receivable
         balances and charged to the provision for doubtful accounts. The
         Company calculates this allowance based on historical of write-offs,
         level of past due accounts and relationships with and economic status
         of the customers.

         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 the identifiable lives of the
         patents and licenses.

         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.


                                       9
<PAGE>

                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                  NOTES TO THE CONDENSED FINANCIAL STATEMENTS
                               September 30, 2004
                                  (Unaudited)


         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:

                  Description                           Estimated Service Life
                  -----------                           ----------------------
                  Office furniture and equipment               5-7 years
                  Leasehold improvements                       4 years

         Advertising and Marketing

         Advertising and marketing costs are expensed as incurred, which totaled
         $16,490 and $1,140 for the third quarters of 2004 and 2003,
         respectively. Advertising and marketing costs totaled $37,122 and
         $6,680 for the nine months ended September 30, 2004 and 2003,
         respectively.

         Use of Estimates

         The preparation of financial statements in conformity with accounting
         principles generally accepted in the United States of America 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 rights to
         various fire suppression products for a purchase price of $2,375,000.


                                       10
<PAGE>

                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                  NOTES TO THE CONDENSED FINANCIAL STATEMENTS
                               September 30, 2004
                                  (Unaudited)


         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 $175,200 from related parties. The company
         is the manufacturer/supplier of the products.

         Worldwide exclusive marketing rights to BioRemediation Technology
         developed by Mohsen C. Amiran, Ph.D. were acquired for stock in the
         amount of 360,000 shares and warrants for 180,000 shares of stock
         exercisable at $1.00 per share during the first quarter of 2003.

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 $11,112 and $11,492 for the third quarters of 2004
         and 2003, respectively. Rent expense for all operating leases was
         $36,334 and $34,860 for the nine months ended September 30, 2004 and
         2003, respectively.

5.       COMMON STOCK

         Private Placement

         During the first quarter of 2004, 640,000 shares of common stock were
         sold in a private placement at $0.20 per share. During the second
         quarter of 2004, the company sold 621,250 shares of common stock at
         $0.20 per share in a private placement and 1,000,000 shares of common
         stock at $0.50 per share in a private placement.

         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 February 2004, the board of directors adopted the 2004 Stock Option
         Plan. The number of shares subject to the 2004 Plan is 1,000,000.


                                       11
<PAGE>

                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                  NOTES TO THE CONDENSED FINANCIAL STATEMENTS
                               September 30, 2004
                                  (Unaudited)


         At June 30, 2004, there were 395,000 options to purchase shares of
         common stock outstanding pursuant to the Plan.

         Warrants

         There were 2,256,500 warrants outstanding at December 31, 2003, all of
         which were exercisable at $0.25 per share through June 11, 2004. During
         the first quarter of 2004, warrants were issued to acquire 640,000
         shares of common stock for $0.50 per share through January 30, 2005 in
         connection with a private placement offering. During the second quarter
         of 2004, the company issued 1,000,000 warrants to purchase shares at
         $1.00 per share, expiring May 7, 2005 and 621,250 warrants to purchase
         shares at $0.50 per share, expiring January 30, 2005 in connection with
         two private placements. There were 2,258,500 warrants exercised at
         $0.25 per share during the second quarter. There were 843,000 warrants
         that expired on September 10, 2004. Currently there are 416,250
         warrants exercisable at $1.00 expiring November 9, 2004.

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 $.35 per 1 liter can of FirePower(TM) 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 the close of the
         preceding month. The company has prepaid royalties to BioGenesis
         totaling $511,859 as of both December 31, 2003 and September 30, 2004.

7.       CONCENTRATIONS

         Approximately 63 percent of the sales in the third quarter of 2004 were
         made to four customers and 68 percent of the sales in the third quarter
         of 2003 were made to two customers.


                                       12
<PAGE>

                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                  NOTES TO THE CONDENSED FINANCIAL STATEMENTS
                               September 30, 2004
                                  (Unaudited)


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.       AGREEMENTS

         On February 6, 2002, Summit executed a Distribution Agreement with
         614575 Alberta Limited of Calgary, Alberta, Canada. Alberta Limited
         manufactures a series of home fire extinguishing systems which feature
         FlameOut(R) as part of each system. 614575 has changed their trade name
         to Just-In Case Fire Limited. Summit and Just-In Case Fire executed a
         bi-lateral exclusive agreement during the second quarter of 2002. The
         company sells FlameOut(R) to Just-In Case Fire exclusively for their
         mobile fire extinguishing systems. Summit will receive a royalty on the
         sale of each unit for the granting of said exclusivity.

         In late January 2004, Summit finalized an agreement with BioCoP
         International B.V. for a blending facility in The Netherlands. This
         will allow for BioCoP to begin blending completed (finished) products
         from chemical concentrates that Summit will sell to BioCoP. The line of
         products will range from industrial or commercial products to consumer
         oriented products. In addition to the blending of finished chemical
         products, BioCoP will begin production of an aerosol product similar to
         FirePower(TM). In establishing the blending facilities, Summit will be
         paid royalties on all manufactured and produced goods. In addition,
         Summit will be a 25% partner in the Summit Products' sector of BioCoP
         International B.V. During December 2003 and January 2004, BioCoP made
         their initial presentations to contacts in The Netherlands, Germany and
         the Czech Republic. The scope of the entire agreement includes
         marketing in over fifty countries in Europe and Asia.

         On April 5, 2004, Summit executed a marketing services agreement with
         AMBIZ Associates, LLC, a company that provides marketing and other
         services to client companies. AMBIZ, operating as an outsource sales
         and marketing team, will assist Summit with developing marketing
         channels in mass retail, military and commercial aviation and with
         governmental agencies, for Summit's patented fire suppressant
         technology.


                                       13
<PAGE>

                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                  NOTES TO THE CONDENSED FINANCIAL STATEMENTS
                               September 30, 2004
                                  (Unaudited)

10.      SIGNIFICANT ADJUSTMENTS

         The company recorded an adjustment to correct September 30, 2003
         revenues as a result of an improperly recorded sale in the third
         quarter of 2003. The effect of this correction decreases revenues by
         $79,000 and cost of sales by $18,400 at September 30, 2003. The
         accompanying financial statements have been adjusted for these events.




                                       14
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

         The following discussion and analysis should be read in conjunction
with the financial statements and the accompanying notes thereto for the
three-month period ended September 30, 2004 and is qualified in its entirety by
the foregoing and by more detailed financial information appearing elsewhere.
See "Item 1. Financial Statements." The discussion includes management's
expectations for the future.

RESULTS OF OPERATIONS - THIRD QUARTER OF 2004 COMPARED TO THIRD QUARTER OF 2003

         Summit Environmental's sales for Q3 2004 were 49 percent of Q3 2003
sales - $24,226 in Q3 2004 compared to $49,483 in Q3 2003. Gross margin was 43.2
percent for Q3 2004 compared to 37.5 percent for Q3 2003. Sales have not reached
a level to generate consistent gross margin percentages.

         Operating expenses increased 51.4 percent during Q3 2004 over Q3 2003.
Operating expenses increased by $99,088 from $192,698 in Q3 2003 to $291,786 in
Q3 2004. The increase was due primarily to salary for a new position,
vice-president of marketing, and advertising expense.

         Amortization and depreciation were $43,389 in Q3 2004 and in Q3 2003.

         Summit had a net loss from operations of $281,322 for Q3 2004, up from
a net loss of $174,163 for Q3 2003, a $106,159 or a 62 percent increase. The net
loss was attributed primarily to the $99,000 increase in selling, general and
administrative expenses.

         RESULTS OF OPERATIONS - FIRST THREE QUARTERS OF 2004 COMPARED TO FIRST
         THREE QUARTERS OF 2003

         Sales from operations were $163,713 for the first three quarters of
2004 compared to sales of $137,154 for the first three quarters of 2003, a 19
percent increase. Gross margin on these sales was 51.1 percent in the first
three quarters of 2004 and 42.4 percent in the first three quarters of 2003. The
improvement in gross margin was attributable to higher margin products being
sold.

         Operating expenses were up to $811,351 for the first three quarters of
2004 compared to $608,120 for the first three quarters of 2003, an increase of
$203,231 or 33.4 percent, almost all of the increase being attributed to
Increased presence in trade shows, travel, advertising, and commissions for
sales force.

         We experienced a net loss of $729,034 in the first three quarters of
2004, up 33.3 percent from the $546,930 loss of the first three quarters of
2003. The loss per share of common stock was $0.04 for the first three quarters
of 2004 versus $0.03 for the same period of 2003.

         Some balance sheet items that reflect significant changes from December
31, 2003 to September 30, 2004 are: cash, up to $684,943 from $114,054; accounts
receivable, up to $42,281 from $29,444; prepaid expenses, up to $119,542 from


                                       15
<PAGE>

$79,916; property and equipment, up to $78,505 from $58,235; and accounts
payable, down to $812 from $71,730.

         The net loss of $729,034 in the first three quarters of 2004 was
financed in part from $130,251 in amortization and depreciation and the balance
by $1,332,750 in proceeds from the sale of stock.

         OVERVIEW - RECENT DEVELOPMENTS

         During the first quarter of 2004, several of our markets for
FlameOut(R) have continued to develop. Key was the listing, after 32 months of
testing, of FlameOut(R) on the QPL 5100-307 on May 5, 2003 by the United States
Forestry Service for application in the fighting of wildfires. The listing for
FlameOut(R) gives the firefighting industry a product with the capabilities to
fight all types of fires using FlameOut(R) more efficiently and economically
than with any other product while accomplishing these tasks in a totally
environmentally risk-free environment.

         FlameOut(R) was successfully used in forest and wildland fires in
California in late 2003 by the crews of Western Fire. The fast-acting
capabilities of FlameOut(R) supported the marketing efforts of Western Fire with
other crew bosses and product cache leaders. One of the most significant
observations was that of the reduction and, in many cases, the prevention of
re-ignition of fires in areas where FlameOut(R) was used.

         FlameOut(R)'s performance positioned Western Fire to be called out
early in 2004 on several smaller fires. During June and July 2004, Western Fire
had four crews on the Nuttals and Mt. Graham fires in Arizona. We shipped
truckload orders to Western Fire. Western Fire, whose corporate headquarters are
located at the Evergreen Aviation Air Base in Arizona, is using their
warehousing facilities at Evergreen Aviation for a large order of FlameOut(R) to
help prepare for orders anticipated from area product caches in California,
Arizona, Nevada, New Mexico and Colorado.

         During July, we continued to prepare for what had been predicted by
industry experts in wildland firefighting in January and February 2004 as the
front end of the worst wildland wildfire season in history. In preparation we
shipped a large inventory to warehousing in Butte, Montana. The United States
Forestry Service contacted us in February inquiring about depot locations, as
they planned for a projected catastrophic season. As of September, unusual
weather patterns had produced more rain, reducing high temperatures and high
heat. In retrospect, what was expected to be a catastrophic fire season has
resulted in the calmest fire season in the past ten years. During this time, we
developed a relationship with the California Department of Forestry. CDF, as it
is referred to, is an organization very similar to the United States Forest
Service. We are currently working with them with assistance from Western Fire
and BioGenesis to develop a requested bid specification for FlameOut(R). The bid
specification is to be submitted for inclusion by CDF in the Spring of 2005.

         Just-In Case Fire manufactures the Fire Caddy(TM), a portable mobile
fire extinguishing system built on the concept of a physical appearance of a
two-wheeled freight dolly. We executed a bi-lateral exclusive marketing
agreement with Just-In Case in 2002. The agreement sets out that Just-In Case
manufactures their system exclusively with FlameOut(R) while Summit agrees not


                                       16
<PAGE>

to sell FlameOut(R) to mobile systems like the Fire Caddy(TM). Just-In Case
compensates us for their exclusive arrangement with royalties on each Fire
Caddy(TM) unit.

         A project in New Zealand initiated by a dealer established from our
logging efforts began when a Fire Caddy(TM) with FlameOut(R) was used to
extinguish a burning tire on a mining truck which was 13.5-foot-tall. This
extraordinary accomplishment opened the doors of communications and negotiations
between Just-In Case Fire and BHP Mining of Australia. Continued negotiations
have resulted in the notification to Just-In Case Fire that BHP Mining has made
the decision to equip all their trucks and equipment with FlameOut(R) and the
new Fire Caddy(TM) DC. BHP has 153 mines in Australia and New Zealand.
Information received by Summit from Just-In Case Fire is for an annual supply
contract of 500 tons of FlameOut(R) or 135,000 gallons. When initiated, the
resulting sales will generate Summit annual amounts of approximately $1,500,000.
As of September 2004, Just-In Case Fire was in the final stages of completing
the first of the 12-volt DC Caddy units. They will be used to provide the
extinguishing apparatus for the FlameOut(R) used on the mining trucks of BHP.

         In June, demonstrations were held in California and Nevada by
management for the purpose of establishing dealers for marketing home safety
systems utilizing all of our fire suppression products. The concept to be
marketed by new dealers is the preparation of property owners to fight fires by
having FirePower(TM) cans within the home, Hose Caddys(TM) on the garden hose,
and a Fire Caddy(TM) for the dwellings and perimeter property protection using
FlameOut(R) in all places of someone's property specifically in Reno, Lake
Tahoe, Squaw Valley and Truckee, Nevada. During the third quarter 2004, we
developed a trailer system that has all of the necessary equipment for the
introduction and demonstration of these systems. We have introduced in the
Southeast part of the United States and Southern California these demonstration
trailers in an attempt to secure more dealers for FlameOut(R) and some of our
newly developed homeland security product.

         In August 2003, we executed a master distribution agreement with
Western Fire Inc. of Casa Grande, Arizona for the purpose of marketing
FlameOut(R) to the various state and federal forestry services. Western has its
own fleet of specialty equipment trucks that are called into action by the
various incident commanders in the event of wildfire. In September 2003, Western
introduced Summit to its customer, Evergreen International Aviation. We were
invited to participate in a new project, a field testing program to determine if
FlameOut(R) would be compatible in a new delivery system utilizing a converted
Boeing 747 aircraft. It is. This aircraft utilizes a large compressed air foam
system carrying 24,000 gallons of FlameOut(R) within its payload. The Evergreen
Super Tanker is capable of dispensing a single foam blanket 100 feet wide for
25,000 feet or segmented drops if needed. FlameOut(R) is the only non-toxic
product approved by the United States Forestry Service. A demonstration drop of
FlameOut(R) from the Supertanker can be viewed by going to the Summit website,
www.summitenvironmental.com. From the homepage, click on "Links" and then click
"Evergreen" from the links page.

         On April 23, 2004, we went to the Evergreen testing facility for an
additional demonstration of the Supertanker, accompanied by former United States
Air Force Chief of Staff, General Mike Ryan. The purpose for our trip was to
begin forming a mutual marketing alliance between Evergreen and Summit. The
design of the alliance is to extend the delivery of capabilities from the
supertanker which included a WMD (biohazard nuclear exposure) platform. On July
27, 2004, Western Fire, Evergreen and Summit participated in a joint


                                       17
<PAGE>

presentation held at Western's Corporate offices located on the Evergreen Air
Base in Marana, Arizona. The meeting focused on presentations of response
capabilities (Western), broad based applications (Evergreen) and problem
solution (Summit) to representatives of FEMA, Homeland Security, Office of
Energy Management, Arizona State Energy Management, Bureau of Land Management
and local and forest firefighting crews. Presented at the meeting were two new
additive products which utilize FlameOut(R) as its carrying agent. The two new
additives are a bio-hazard decontamination agent, and our remediation response
products designed to address toxic spills on land or water. The various
representatives in attendance saw applications for many possible scenarios. We
returned to the Pinal Air Base in August to participate in fire and explosion
extinguishing demonstrations in conjunction with Western Fire, several southern
Arizona sheriff's departments and the Department of Defense explosives teams to
measure FlameOut(R)'s effect responding to fire scenarios initiated by criminals
or terrorist elements. Attending this demonstration were representatives from
the Taiwan Nuclear Authority (Vasa Group) and the W.S. Darley Company (Odin Foam
Division). These two entities will be discussed further herein. FlameOut(R)
performed beyond expectations. Requests for additional products resulted from
the introduced concept of FlameOut(R) as a carrying agent. The solution for
potential dangerous and hazardous exposure situations was established among the
various groups in attendance. One such product requested to be developed is
FlameOut(R) with Pepper Spray which could be used as a criminal apprehension
tool. The Merlin, a backpack, CAF system could be used as the device to dispense
the chemical.

         During the first week of March 2004, we attended the International
Association of Fire Chief's Wildland/Wildfire Conference in Reno, Nevada.
FlameOut(R) was showcased by two of our distributors at separate locations in
the Exhibits Hall.

         Just-In Case Fire of Calgary, Alberta operated out of the Summit
exhibit space showcasing Fire Caddy(TM), the new DC Caddy(TM), Hose Caddy(TM),
FirePower(TM) and FlameOut(R) concentrate. Just-In Case Fire was assisted in
their presentations by several members of the Canadian Forestry Service, who had
actual experience using FlameOut(R) during the end of the fire season of 2003.

         Western Fire, our wildland/wildfire distributor in Arizona, represented
us and exhibited FlameOut(R) in its booth with the W.S. Darley Company. Darley
Pumps are one of the most desired pumps for firefighting equipment in the world.
As a result of Western Fire's experience with compressed air foam systems and
the introduction of FlameOut(R) into those systems, we began discussions with
Darley Pumps for the purpose of recommending FlameOut(R) to be sold in
conjunction with their CAF system and distributing FlameOut(R) and FirePower(TM)
through Darley's fire fighting equipment catalogs.

         Several members of AmBiz Associates accompanied Keith Parker, our CEO,
to the conference in order to get a perspective of FlameOut(R) and its potential
impact within the Wildland/Wildfire arena. This would serve as an informational
gathering, so as to provide the entire AmBiz body more information in order for
our development of a marketing strategy.

         Additional marketing shows were attended in Arkansas (Arkansas Timber
Producers Association and Arkansas Forestry Service) and Virginia (Southern
Forest Association). The focus of our attention was to apprise the forestry
departments of the Southeastern United States of the successful use of


                                       18
<PAGE>

FlameOut(R) in California during November 2003 and the introduction of the
Evergreen Supertanker. During the Southern Forestry Association Meeting in
Virginia, we were invited to participate in this year's Southern Forestry
National Association meeting and to be a presenter in 2005. While participating
in the Virginia show we were introduced to Forestry Supply Company. This supply
company sells products to logging crews and wildland wildfire crews. Located in
Jackson, Mississippi, the site of the National Southern Foresters Meeting, this
led to the opportunity to meet with their management in September 2004. Our
attendance at the Jackson conference led to a scheduled demonstration of
FlameOut(R) with the Jackson, Mississippi Fire Department. This demonstration
was successful from the point of gaining a new customer and from acquiring new
imagery showing the fast acting and economical aspects of FlameOut(R). Pictures
of this event are available on our website, www.summitenvironmental.com.

         In August, we were an exhibitor at the International Association of
Fire Chief's Conference in New Orleans. A byproduct of our attendance at this
meeting gave us the opportunity to expand our relationship with the W.S. Darley
Company which began in Reno in March.

         Two previously discussed developments emerged as a result of this
meeting. We previously supplied Darley some FlameOut(R) samples to utilize in
the Compressed Air Foam (CAF) Systems at their Odin Foam Division facility. CAF
systems are one of the fastest growing segments of the fire fighting apparatus
industry. The W.S. Darley Company is one of the world's premier manufacturers.
Traditionally, CAF systems have two product tanks, one for a class A wetting
agent, and one for a Class B foam. The introduction of FlameOut(R), UL listed
for both Class A and B fires, has provided a competitive edge for Darley in
their market place. A redesigned CAF system utilizing FlameOut(R) would require
only one tank, one set of valves, and one set of proportioners. The result,
lower cost of goods accompanied by a superior product that is environmentally
safe. The Vasa Group, previously mentioned, purchased a large CAF system for the
nuclear facility in Taiwan from Darley in September. As a result of our
demonstration in Arizona in August, the CAF system was equipped with FlameOut(R)
giving us another international sale. Secondly, Western Fire, a Darley CAF
system dealer, formally submitted FlameOut(R) and FirePower(TM) to the W.S.
Darley catalog division in September. FlameOut(R) and FirePower(TM) will appear
in Darley's fire products catalog in January 2005. This catalog goes to every
fire department in the United States and a variety of fire departments in
twenty-three foreign countries.

         We began working with Asah Terra, LLC, a Washington based
bioremediation contractor. Asah Terra contacted us to provide recommendations
and chemicals for two specific clean-up projects they had been contracted to
resolve. In September, we sold Asah Terra Ultimate Clean 850 to treat
contaminated soil at a decommissioned gasoline service station. Asah Terra
specializes in the area using an electro-migration procedures through wells that
are drilled into contaminated areas. The addition of Ultimate Clean 850 in this
scenario reduced the contamination in parts per billion in a range from 40% to
79% in three weeks. Most noticeable was one of the drilled wells contamination
level measured at 410,000 parts per billion and was reduced to 81,000 parts per
billion.

         Again, at the end of September, Asah Terra requested a possible
solution for a cleaning project with the City of Seattle. The task for this
project was to use Ultimate Clean 1103 for the reduction and possible
elimination of hydrogen sulfide fumes and emissions coming from the cleaning of
a 6,000 gallon oil-water separator during its required cleaning. Stated results


                                       19
<PAGE>

communicated back to Asah Terra from the City of Seattle officials were that
there were no detectable levels experienced at the site during and after the
clean-up. The significance of this reduction has a cost savings effect as
previous hazmat contractors had to be on site.

         Asah Terra has requested that Dr. Mohsen Amiran accompany
representatives from Asah Terra to Nigeria. Asah Terra is a contractor with
contracts for a large volume of clean-up scheduled for Nigeria caused from years
of neglect in the production of petroleum. The clean-up projects are estimated
at $13 billion spanning the next ten years. Our success in providing the
products producing successful clean-up as mentioned for Asah Terra has
underwritten the use of several of our Ultimate Clean products for projects for
Asah Terra in the U.S. and Nigeria.

         In the last quarter of 2002, we began marketing FlameOut(R) to the
logging industry. This venue was initiated when we were contacted by Bituminous
Insurance Company, the oldest and largest underwriter of fire insurance coverage
for equipment used in the logging industry. With insured equipment ranging from
$275,000 to $650,000, Bituminous now takes the position that a product like
FlameOut(R) must be present in extinguishers on insured equipment, or the logger
will face a non-renewal status. For new equipment, the same requirement would be
required for binding of coverage. We expanded the sale of FlameOut(R) to these
customers from five gallon containers of FlameOut(R) concentrate to include 2
1/2 gallon and 6 liter extinguishers and brackets to mount the extinguishers. We
began to package topper bottles (pre-measured bottles of FlameOut(R)) to be used
to complete the fill of extinguishers out on the logging line. During 2003, we
added endorsements from Santee Insurance Company and Lloyd's of London for
marketing FlameOut(R) to their insureds. These companies now discount premiums
from 15% to 25% when FlameOut(R) is installed on their insured equipment. We
provide marketing materials to the senior underwriters of the insurance
companies. They hold regional marketing meetings and disburse the materials to
their field agents. The marketing directly of our products to a logging customer
is handled mostly through the logger's insurance agent or local equipment
suppliers we have set up as dealers. In April 2004, we attended the Arkansas
Timber Producers Association meeting held on the grounds of International Paper.
We demonstrated extinguishing fires (tire, diesel fuel, and hydraulic fluid)
with the equipment which is currently recommended to the operators by Bituminous
Insurance. We also introduced the Fire Caddy DC(TM), powered by a rechargeable
battery and the Hose Caddy(TM). We also demonstrated the new FirePower(TM),
which had been introduced on QVC on April 3, 2004. Logging supply dealers
established in Virginia, South Carolina, and Alabama in 2003 have seen increased
sales during the second quarter of 2004. We have developed a directed effort to
expand logging sales. The southeastern part of the U.S. has been divided into
three areas. Each area has an insurance agent/dealer representative. We have
representatives for the home office on the road, working within these three
areas. While gaining exposure in these areas, we were recently interviewed by
two new insurance companies that have now proposed initiating programs similar
to the existing relationship we experience with Bituminous. We have expanded our
efforts through representatives with Lloyd's of London and Santee Insurance
Company.

         Due to stiff regulatory guidelines with regards to portable fire
extinguishers, the approval of our aerosol can fire extinguisher prompted our
competitors to create a myriad of road blocks, attempting to prevent us from


                                       20
<PAGE>

competing in some of our target venues. One of our initial venues was to market
FirePower (TM) on QVC. In order to complete this targeted goal, we accomplished
the following:

         o        Completed the NFPA 10 certification tests for both chemical
                  contents (ANSI/UL 711) and the container (ANSI/UL 8).

         o        Obtained a validated listing number from Applied Research
                  Laboratories for listing FirePower(TM) as a legally tested,
                  certified, and insured product.

         o        Completed Quality Assurance at QVC.

         o        Secured programming approval at QVC.

         o        Obtained certification confirmation from United Parcel Service
                  on the shipping classification for FirePower(TM) as "aerosol
                  non-flammable". This allows FirePower(TM) to be shipped as any
                  other product and not as hazardous material.

         o        Secured the confirmation letter from the United States
                  Department of Transportation confirming FirePower(TM) for
                  shipping as ORM-D. This confirmation eliminates additional
                  shipping issues created about aerosols in the aftermath of
                  September 11, 2001.

         o        Obtained the right for George Foreman to be the national
                  spokesperson for FirePower(TM) when retail "roll-out" of the
                  product would become viable after initial branding on QVC.

         FirePower(TM) successfully aired on QVC in April, May and June and on
August 3, 2004. We were informed that FirePower(TM) would become a product for
regular programming at QVC in August. We were issued 2 standing purchase orders
and notified of a back up purchase order. When we placed our new order for
shells (cans), we learned that the aerosol aluminum can supply industry has
taken a drastic change in direction due to the rising cost of crude oil.
Companies that had previously packaged products in plastic containers began to
switch to aluminum cans. The type cans we are required to use are not those used
for deodorant and shaving cream. These are specialized cans produced as 2-P or
2-Q aluminum cans. There are only two facilities in the world that make these
cans. One is located in Madrid, Spain and the other is in Monterrey, Mexico.
What was originally a 3 to 4 week lead time for our supply has now become 16 to
22 weeks. New planning measures had to go into effect due to QVC and new retail
orders which are scheduled for late first quarter and early second quarter 2005.
These will be discussed in the Outlook with regards to AmBiz. The August order
from QVC to be delivered in late September has been moved to a delivery to QVC
between December 28, 2004 and January 5, 2005. We have ordered a sufficient
supply of empty shells (cans) to warehouse at our contract filling facility in
order to meet the demand of QVC based on this changing demand for this type of
aluminum cans. One example that impacted the supply availability is the
repackaging of Febreeze by Proctor and Gamble.

         In a planning meeting with AmBiz members, Don Burns, Max James, and Rob
Heggie in early August, the retailing of an aerosol product was the topic of the
meeting. The primary customer for this focus of the meeting was Target Stores.
During the meeting, the extinguishing of a Christmas Tree with a can of
FirePower(TM) was noted. This discussion led to the introduction of our product
SafeTree(TM), heretofore unknown by AmBiz. As a result of the discussions, Rob
Heggie contacted the president of Noble Mountain Tree Farms. Noble is one of the
world's premier Christmas Tree growers and suppliers touting the supply for
Wal-Mart, Home Depot and Lowe's besides numerous other retailers. At the same
time, Noble possesses a network of Noble Tree lots which sell trees direct to
the public. Within the next week, meetings were held with Gary Bishop,
President/CEO of Noble. He was in Dallas for a merchandising meeting conducted


                                       21
<PAGE>

by Wal-Mart at Market Hall. Gary was responsible for the exhibiting of 30
Christmas Trees and 30 wreaths for this meeting. We supplied SafeTree(TM) in
bulk and in hand held containers for application to be used on 15 of the trees
and wreaths. The results observed by Noble representatives and Wal-Mart buyers
were very positive. After 30 days, the trees and wreaths treated with
SafeTree(TM) were still green and were not losing their needles. Those untreated
had turned yellow and brown and were losing needles. Through the combined
efforts of AmBiz (Rob Heggie), Noble (Gary Bishop) and our office, we developed
what we have defined as a second phase of the performance period for
SafeTree(TM) during the 2004 Christmas Season. SafeTree(TM), packaged in a
special (16 ounce) aerosol can will be test marketed in Home Depot and Wal-Mart
in the Solona Beach area of Southern California and the Dallas-Fort Worth, Texas
area. Additionally, SafeTree(TM) will be sold to a select group of the Noble
Christmas Tree Lots. This will complete the second phase of the performance
level of SafeTree(TM). In early fourth quarter 2004, Noble will be supplying
two-can sample sets to 50 to 60 of the major retailers in the U.S. that are
customers of Noble each year for trees and wreaths. During the first three weeks
of November, Noble will ship 6 to 7 million trees to these customers. Once all
our preparation work is completed, we will be prepared to assist Noble in the
marketing of SafeTree(TM). The market time for purchasing Christmas products for
Christmas 2005 is during the first quarter 2005.

OFF-BALANCE SHEET ARRANGEMENTS

         Our company has not entered into any transaction, agreement or other
contractual arrangement with an entity unconsolidated with us under which we
have

o     an obligation under a guarantee contract,

o     a retained or contingent interest in assets transferred to the
      unconsolidated entity or similar arrangement that serves as credit,
      liquidity or market risk support to such entity for such assets,

o     any obligation, including a contingent obligation, under a contract that
      would be accounted for as a derivative instrument, or

o     any obligation, including a contingent obligation, arising out of a
      variable interest in an unconsolidated entity that is held by us and
      material to us where such entity provides financing, liquidity, market
      risk or credit risk support to, or engages in leasing, hedging or research
      and development services with us.

         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.

          We are continuing our work with American Business Associates (AmBiz).
AmBiz is assisting us with introductions into military, homeland security and
emergency management venues, retail development and introductions for some of
our products and with development and financing for future retail projects. More
about AmBiz can be found at www.americanbusinessassociates.com. With retired Air
Force Chief of Staff General Mike Ryan assisting with our efforts, we have
submitted FlameOut(R) and FlameOut(R) Foam to the United States Air Force
chemical testing center at Tyndal Air Force Base in Florida. The series of
testing involves the protocol to find a new agent to suppress ground based fuel
fires. Our FlameOut(R) Foam (AFFF Replacement) and FlameOut(R) will be
undergoing continued toxicity testing and efficacy tests during 2005. Plans are
to introduce FlameOut(R) to the US Air Force testing center at Little Rock,
Arkansas for use in the Air Force fleet of C-130 tankers in early 2005 for
wildland, wildfire applications.

Our FlameOut(R) was used in some of the fighting of wild fires in California,
Arizona, and Canada during 2003. We saw much more activity in May and June 2004
in Arizona with FlameOut(R) being ordered by the product caches to the front
lines of the Nuttals fire and the Mt. Graham Observatory fire. Western Fire
ordered a large inventory of FlameOut(R) in order to facilitate these emergency
type orders which are occurring and will occur with little or no warning. The
expected and predicted increase volume of wildfires for 2004 did not occur due
to unusual climate change and more rain than predicted. Western Fire has
purchased a sufficient inventory to answer the demands that could change
quickly. Additionally, we have an inventory of FlameOut(R) in a warehouse in
Butte, Montana.


                                       22
<PAGE>

         When President Bush signed the Healthy Forest Initiative, we
immediately met with our US Congressman and the US Congressman for Pinal County
in Arizona for the purpose of presenting FlameOut(R) as the answer to the
problems which have occurred from "controlled burns". It is a given that one
will get out of control. It is just not known where. Our lobbying efforts
continue to focus on the non-toxic and biodegradable benefits of FlameOut(R), as
a politically popular answer for the solution of these issues when they occur.
We made presentations to FEMA, Homeland Security, Arizona State Emergency
Management, Office of Emergency Management, and Bureau of Land Management
representatives on July 27, 2004, in conjunction with Western Fire and Evergreen
Aviation. Western Fire has employed, as a consultant, a former aid to a U.S.
Congressman from Arizona for the purpose of enhancements and introductions in
order that FlameOut(R) and Western Fire are called into action. The focus of the
meeting was centered on emergency response to toxic spills and biohazard
potentials. The previous successful demonstration of the use of the Evergreen
Supertanker to disperse FlameOut(R) over a path 100 to 125 feet wide for 20,000
feet brought about the recognition that FlameOut could be used as an extremely
effective carrying agent for other products. The idea of dropping water from the
air has been around for a long time. It is impractical as the water would turn
to mist and drift rather than being directed to a specific location. The
additive of FlameOut(R) to water and dispersed through a CAF system has
significantly changed these views. New directions for the use of FlameOut(R) as
the carrying agent for other products which address environmental issues are
currently being developed. A branding slogan has been developed using "a member
of the FlameOut(R) family of products". This terminology allows for the
introduction of the concept of our other products ability to be broadcast over
large areas. The broadcasting of these specific agents for specific
circumstances through all types of CAF systems, whether air, ground or home
based was well received by the previously mentioned government groups. We will
be introducing this concept at the Fire Rescue Conference in Las Vegas, November
12-14, 2004. An additional benefit to the branding is that it helps establish
credibility for the use of these additions due to the non-toxic and
biodegradation major certifications for FlameOut(R). All labels for products
produced for which FlameOut(R) is the carrying agent will carry the approval
identifications of FlameOut(R). Our remediation formula for oil spill response,
and our decontamination additive that will expand the encapsulation capabilities
where remediation is necessary gives us the ability to address emerging response
beyond fires. The clean-up of toxic spills or chemical exposures, and a
biohazard enzyme to clean the air from free radicals in the event of a terrorist
attack, and a fire retardant with a sealant that can be sprayed on a structure
prior to evacuating an area in the event of a wildfire threatening a residential
area are examples of this expanding of our technology. The Evergreen
Supertanker, Type 6 and Type 3 emergency response trucks from Western Fire, the
Fire Caddy(TM), and the new DC Caddy(TM), Darley and Intelagard CAF systems, and
the Hose Caddy(TM) are devices capable of effectively dispersing FlameOut(R)
plus its new additives.

         Western Fire, our distributor in Casa Grande, Arizona, has been holding
training classes for wildland fire fighting crews in Arizona, New Mexico,
Colorado, California and Nevada for the purpose of teaching fire fighting crews
how to use FlameOut(R) in the fighting of wildfires. New CAF Systems are now
being introduced as the state of the art fire fighting equipment. These systems
display properties of FlameOut(R) that were unknown until FlameOut(R) was
introduced through these types of systems. Western is the licensed procurement
office for several large municipal fire departments, even as far away from
Arizona as the District of Columbia. Western Fire began moving pallets of
FlameOut(R) on to the fire lines recently in fires in Arizona (June - July
2004). These newly trained and graduated fire crews - when separate from Western
Fire's crews - are now coming to wildfires asking for FlameOut(R) from the Fire
Cache.


                                       23
<PAGE>

         On April 22, 2004, Western Fire was dispatched for its first brush fire
of the season. A twenty-acre brush fire was reported at the Picacho Reservoir in
Pinal County, which reservoir has been a dry lake for a number of years due to
the prolonged drought in the southwest. Western Fire sent crews and Type 3 and
Type 6 compressed air foam (CAF) engines loaded with FlameOut(R) fire fighting
foam. Initial attack began early that evening using FlameOut(R) as a wetline to
flank the advancing brush fire. Because of FlameOut(R)'s unique ability to be
used as a retardant, the fire could not advance through the FlameOut(R) wetline
and was contained to a brush fire allowing Western Fire wildland firefighters to
begin mop up operations. The fire was in heavy brush and mesquite trees. Again
FlameOut(R) worked beyond everyone's expectations, especially in keeping the
fire contained instead of becoming a wildfire, and in putting out stumps'
underground root system fires that kept the crews working all night. By morning
the brush fire was completely out with no reported rekindling

         Earlier the next afternoon Western Fire was dispatched for a mutual aid
call by the Northern Pinal Fire Department as a possible brush fire in an
unincorporated area of Pinal county. Once on scene, it was found to be a 40 foot
cargo container on fire on a homeowner's property in an urban interface area.
The homeowner had been welding on the metal cargo container setting off a fire
inside filled with Class B materials. The fire was burning so hot that paint was
melting on the outside. Again FlameOut(R) was deployed from a Western Fire Type
6 CAF engine to easily cool the outside of the container and then within minutes
extinguished the contents inside the cargo container. The combination of a
compressed air foam system and unique abilities of FlameOut(R) foam easily
mitigated the fire with minimal water damage. In early May 2004, we were asked
to furnish warehousing locations and central phone numbers by the United States
Forestry Service. Also, we were asked to supply a potential list of customers
who have been exposed to FlameOut(R). These exposures effects have been
completed by Western Fire and Just-In Case Fire and represent over 235 companies
and wildland fire fighting agencies and departments. Further locations were
provided for fires where FlameOut(R) has been used including and since The Old
Fire in California in November 2003. Western Fire crews returned from the
Nuttals and Mt. Graham fires on July 21, 2004. They were the last crews to leave
the fire lines. Reports coming from the Western Fire Crews and others center
around FlameOut(R) being the first product these crews have used that
successfully prevents re-ignition once the fires are extinguished. We feel this
will be one of the primary observations that will begin to produce increased
requests for FlameOut(R) by the fire crews to the fire caches.

         Just-In Case Fire introduced its Hose Caddy(TM) during the fourth
quarter of 2003. This devise connects to the end of a garden hose. It is similar
to a garden fertilizer/insecticide sprayer. The unit comes filled with 32 ounces
of FlameOut(R). Major retail marketing began in Canada at spring garden shows
held in 2004. We have sold Hose Caddies(TM) in conjunction with other devices to
our logging customers.

         In January 2004, Just-In Case Fire introduced its FireCaddy DC(TM).
This is a portable fire extinguishing system in a tool box. Just-In Case has
confirmation letters for the purchase of 4,500 DC Caddy units. One confirmation
letter is for 2000 DC units from State Farm Insurance. The addition of the Hose


                                       24
<PAGE>

Caddy(TM) and the DC Caddy(TM) to Just-In Case Fire's line of products now
provides three fire extinguishing systems exclusively containing FlameOut(R).
Each of these units provides a royalty payable to Summit on each unit
manufactured when sold. Just-In Case Fire started the production of the first
2000 Fire Caddy DC(TM) units for State Farm Insurance in April 2004. Completion
is scheduled for the end of 2004. The first 2000 units require 5000 gallons of
FlameOut(R) for the completed product. In addition, the DC Caddy is the unit to
be installed on the mining trucks for BHP mining in Australia. We have been
informed that the pending order for FlameOut(R) at BHP mines will occur with the
manufacturing of the DC Caddy.

         Through one of the associates of AmBiz, Mr. Tom Hobday, we presented
the Fire Caddy DC(TM) and the Hose Caddy(TM), along with the original Fire
Caddy(TM), FlameOut(R) and FirePower(TM) to representatives of USAA Insurance in
May 2004. This resulted in the preparation of these products for listing in the
USAA members catalog. Initial discussions were held on how to introduce the
product to USAA's insured policyholders, potentially discount premiums and the
effects on tracking claim experience. Though this is in its preliminary stages,
we think that this will be a coming venue in 2005. We have been successful
providing the same products and benefits to insured parties in the logging
industry with Bituminous Insurance, Lloyd's of London and other insurers
requiring fire suppression equipment with FlameOut(R) in order to bind and renew
fire coverage. Now, two years into the program, the insurance companies are
seeing savings from loss reductions. During the third quarter 2004, we began to
increase our presence and marketing to these venues through developing three
areas of the Southeastern United States. We began working directly with field
representatives, independent agencies and loss prevention agencies that place
business with Bituminous, Lloyd's of London and Santee Insurance Companies.
Logging supply center stores in Virginia, Mississippi, and Louisiana have been
operating over a year now as dealers. Fourth quarter of 2004 and first quarter
of 2005 will see an increase in the direct contacts through these regions
established and through more dealer supply stores. We are expecting to offer the
same products to the members of USAA Insurance, through its member services
catalog in early 2005.

         During the first week of March 2004, members of AmBiz accompanied us to
the IAFC Wildland/Wildfire Conference in Reno, Nevada. During April 2004, AmBiz
partner, General Mike Ryan (retired United States Air Force, Chief of Staff -
September 2003) attended a demonstration drop of FlameOut(R) from the Evergreen
747 Supertanker, dispersing 10,000 gallons of FlameOut(R) mixed with water at a
6% solution. Weather computers were strategically stationed in areas of the drop
path. They registered significant decreases in temperature, heat indexes and
barometric pressure, with increasing humidity, surface wind speed and dew point.
We are planning a joint presentation to the U.S. Department of the Interior and
the U.S. Forestry Service featuring the life saving, property saving, quick
response and environmental advantages from dispersing FlameOut(R) over large
areas of wild fires from the Supertanker. We will be focusing on the
capabilities of FlameOut(R) to build fire breaks, prevent toxic exposure to
firefighters and the environment along with structure protection. In August, we
met with AmBiz members Max James, Don Burns, and Robert Heggie for the purpose
of developing a roll-out of an aerosol fire extinguisher for retail marketing
purposes. Sample products, video presentations similar to that for in-store
marketing and point of purchase materials have been developed and are being
presented to major retail buyers by Mr. Heggie and Gary Bishop, President of
Noble Mountain Tree Farms.


                                       25
<PAGE>

         Our distributor in Canada, Just-In Case Fire, estimates that it could
sell 100,000 Caddy units during 2004 and 2005. As of September 2004, the final
design for the DC Caddy was complete and the first prototype was being
manufactured. Even though this project has been delayed from its original
projection due to design changes, Just-In Case advises that all projects and
anticipated sales are still solid. This would provide sales of 250,000 to
500,000 gallons of FlameOut(R) depending on the breakdown of each of the Fire
Caddy Products. We have 5,000 gallons of FlameOut(R) warehoused in Butte,
Montana. This gives us two western United States locations to disperse
FlameOut(R) from as orders come from the Fire Cache leaders on the front lines
of wildfires. The Montana warehouse can easily facilitate orders for Western
Canada.

         During the period March 3-5, 2004 our involvement with Evergreen
Aviation, through our distributor Western Fire, was introduced to the fire
fighting community at the NFPA Wildland Wildfire Conference in Reno, Nevada.
Evergreen has equipped a SuperTanker (a converted 747) with a large, compressed
air foam system. This system can disperse 24,000 gallons of FlameOut(R) mixed
with water along a path of foam 100 feet wide for 25,000 feet in a continuous
drop - or in segmented drops, if necessary. The largest aerial application
currently in use in the industry is capable of one continuous drop for only
2,080 feet. On July 27, 2004, a joint presentation of Western Fire, Evergreen,
and Summit was made to representatives from FEMA, Homeland Security, Office of
Emergency Management, Arizona Office of Emergency Management and others.
Estimated completion, as of September 2004, for the Supertanker project is the
first quarter of 2005.

         Our experience with the Evergreen Aviation SuperTanker can also be used
to disperse remediation products on oil spills and a newly developed
decontamination agent for biohazard or terrorist emergencies. We own the
exclusive marketing rights to a remediation technology obtained from Dr. Mohsen
Amiran in 2003. While all of our successful testing has been centered on
FlameOut(R) in the SuperTanker CAF system, our remediation product is planned
for usage on oil spills. During April 2004, three demonstration drops were
conducted with the Supertanker. Each drop consisted of 10,000 gallons of
water/FlameOut(R) mix (6% FlameOut(R)) for the purpose of showing how
FlameOut(R) will blanket and cover the areas targeted by the Supertanker. The
drops revealed a complete saturation of all vegetation and penetration of the
canopy to completely cover the ground. During the drops, a significant decrease
in temperature was recorded on weather computers. At one of the demonstrations,
over 50 people representing the United States Forestry Service, Bureau of Land
Management, Arizona State Fire, Aire Tanker Operations, and Hazardous Materials
Departments were present. We began an interface phase with FlameOut(R) where the
attributes of the products fire fighting and environmental capabilities are
being introduced into many various methodologies beyond wildland fire fighting.
The addition of our decontamination additive to FlameOut(R) presents a solution
for biohazard potential exposure. In addition, these two additives to
FlameOut(R) for remediation and decontamination can be dispersed by Type 3 and
Type 6 emergency response trucks and all of the Fire Caddy(TM) associated
products.

         We plan to expand during the fourth quarter of 2004 the introduction of
our expanded environmental and hazardous response products. There is an enormous
potential in these areas. The capabilities learned during 2004 by utilizing
FlameOut(R) in CAF systems has shown parties involved with FEMA, Homeland
Security, Department of Defense, and local law enforcements new methods to deal


                                       26
<PAGE>

with problems quickly, efficiently, and environmentally. In this era of
preparing for making our homeland more secure, we have introduced solutions for
many problems facing many agencies and departments. We will be continuing to
show and develop our remediation formula in several venues, develop our
decontamination product, and begin testing on a flame retardant and sealant for
structure protection.

         Working with our distributor for Ultimate Clean Chemicals and Cleaners,
Asah Terra, a Washington based bioremediation contractor, we have achieved
success using two of our chemicals with plans to utilize three to four others in
the heavily contaminated petroleum production areas of Nigeria.

         Asah Terra is working with the Nigerian Government and Shell Oil of
Nigeria in providing consultation and products with specific applications for
what is estimated at up to ten years of existing clean-up of contamination. Russ
Blackburn, CEO of Asah Terra, and Dr. Mohsen Amiran, Summit director and Head of
Research & Development, have been invited by the Senate of Nigeria to address
its body during a November 22-24, 2004 meeting specifically addressing issues
and solutions to this overwhelming contamination problems. One of the first
sites that we will be cleaning is a stagnate lake that allows bacteria to grow.
When it rains, the overflow provides such a large amount of toxic residue that
this site has been linked to being a leading cause of the deaths of infants and
young children in Nigeria. Dr. Amiran estimated from his preliminary studies
that this project will probably last for up to two years.

         Asah Terra is using some other Ultimate Clean products through their
division, FogEater Laboratories, which specializes in cleaning the grease traps
at restaurants primarily in the Northwest United States.

         On April 3, 2004, FirePower was introduced for the first time on QVC.
We performed live, on-air demonstrations of FirePower(TM)'s amazing
capabilities. Additional airings for FirePower(TM) were held in July and August.
In August we received purchase orders from QVC for delivery in September for
airing in October and November. We have discussed previously in the "Overview"
the change which occurred with crude oil, plastic containers, and the increased
demand for aluminum. We have planned by ordering segmented deliveries of cans in
order to meet the demand at QVC and for our plans for retail roll-out. We were
delayed in the start of both of these venues when notification was received that
lead times for cans changed from 3 to 4 weeks to 16 to 22 weeks. We will receive
50,000 empty shells in early December for filling between December 11 and 15,
2004. Delivery for QVC is between December 28, 2004 and January 5, 2005. We have
additional 50,000 shell orders coming in on a regular basis for future needs.
Several catalog sales venues will begin in 2005 with W.W.W. Grainger, W.S.
Darley Company, USAA member services, and Forestry Supply.

Cosmetics

         On November 11, 2004, Paula Parker, President of Pannache Cosmetics,
has been invited to present the Pannache Cosmetics lines of products at the
Quarterly meeting for AmBiz Associates. AmBiz has members with extensive
backgrounds in cosmetics and retailing. The purpose of this meeting will be to


                                       27
<PAGE>

begin to develop a relationship with the Pannache Division of Summit, in the
same manner that began in November 2003 when Keith Parker, CEO of Summit was
invited to present to AmBiz.

         Our 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: the inability of the company to obtain needed
additional 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 our fire suppressant
or is able to discover the additives to our 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 3.  CONTROLS AND PROCEDURES

         Evaluation of disclosure controls and procedures. The Company's
management, with the participation of the Company's Chief Executive Officer and
Chief Financial Officer, has evaluated the effectiveness of the Company's
disclosure controls and procedures as of September 30, 2004. Based on this
evaluation, the Company's Chief Executive Officer and Chief Financial Officer
concluded that the Company's disclosure controls and procedures are effective
for gathering, analyzing and disclosing the information the Company is required
to disclose in the reports it files under the Securities Exchange Act of 1934,
within the time periods specified in the SEC's rules and forms.

         Changes in internal controls. There were no significant changes in
internal controls or other factors that could significantly affect our internal
controls subsequent to the date of our evaluation.

                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         There have been no material developments in legal proceedings earlier
reported.

         No director, officer or affiliate of the company, and no owner of
record or beneficial owner of more than 5.0% of the securities of the company,
or any associate of any such director, officer or security holder is a party
adverse to the company or has a material interest adverse to the Company in
reference to any litigation.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES

         The following shares of common stock were issued on the dates shown in
transactions exempt from registration pursuant to the provisions of Regulation
D, Rule 506. Each purchaser had a pre-existing relationship with management and
was an accredited investor.


                                       28
<PAGE>

<TABLE>
<CAPTION>
                                                  $ VALUE OF
                                                 CONSIDERATION
  DATE           PURCHASER        NO. OF SHARES    RECEIVED                  TYPE OF CONSIDERATION
--------    --------------------  -------------  -------------   -------------------------------------------------
<C>         <C>                      <C>            <C>          <C>
07-01-04    Steven L. Imlay          100,000        $20,000      Cash
07-01-04    Richard Kirschke          45,000          9,000      Cash
07-01-04    Gary J. Bailey           100,000         20,000      Cash
07-01-04    David G. Phipps           20,000          4,000      Cash
07-01-04    Steven F. Gamble          25,000          5,000      Cash
07-13-04    Chris Dellinges           15,000          7,950      Services as the company's chief financial officer
08-04-04    Doug Cox                 700,000        350,000      Cash
08-04-04    Don Jordan               300,000        150,000      Cash
08-17-04    Keith Parker              22,500         10,800      Stock bonus
08-17-04    Paula Parker              15,000          7,200      Stock bonus
09-07-04    Donald K. Adair           25,000          5,000      Cash
09-20-04    Keith Parker               7,500          3,375      Stock bonus
09-20-04    Paula Parker               5,000          2,250      Stock bonus
10-11-04    Michael J. Champine       25,000          5,000      Cash
10-11-04    Robert R. Scheinberg      25,000          5,000      Cash
10-21-04    Chris Dellinges           15,000          5,100      Services as the company's chief financial officer
10-25-04    Keith Parker               7,500          2,325      Stock bonus
10-25-04    Paula Parker               5,000          1,550      Stock bonus
</TABLE>


ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         None.

ITEM 5.  OTHER INFORMATION

         None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)      EXHIBITS

         The following exhibits are filed, by incorporation by reference, as
part of this Form 10-QSB:

         2.1      Agreement of Merger of July 14, 1998, between Summit
                  Environmental Corporation, Inc. and Summit Technologies,
                  Inc.**

         3.1      Articles of Incorporation of Summit Environmental Corporation,
                  Inc.*

         3.1.1    Amendment to Articles of Incorporation of Summit Environmental
                  Corporation, Inc.**


                                       29
<PAGE>

         3.2      Bylaws of Summit Environmental Corporation, Inc.*

         10.1     1998 Stock Option Plan adopted by Summit Environmental
                  Corporation, Inc.*

         10.3     Limited Exclusive Marketing Bilateral Agreement Between
                  Moonlighting Distribution Corporation-USA and Summit
                  Technologies, Inc. (Poder Sexual, Ultimate Stressex and/or
                  Poder 24)*

         10.4     Limited Exclusive Marketing Bilateral Agreement among B. Keith
                  Parker, individually and as Chairman of the Board and CEO of
                  Moonlighting Distribution Corporation-USA, d/b/a Moonlighting
                  International, and Summit Technologies, Inc. (FireKare,
                  FIREPOWER 911(TM), Super Cold Fire, and FLAME OUT(R))*

         10.6     Exclusive Marketing Bilateral Agreement between Moonlighting
                  Distribution Corporation-USA and Summit Technologies, Inc.
                  (Trim-Away)**

         10.7     November 2, 1998 Amendment to April 27, 1998 Letter of Intent
                  between BioGenesis Enterprises, Inc. and Summit Technologies,
                  Inc., and April 27, 1998 Letter of Intent.***

         10.8     2004 Stock Option Plan adopted by Summit Environmental
                  Corporation, Inc.+

         31       Certification of Chief Executive Officer pursuant to 18 U.S.C.
                  Section 1350, as adopted pursuant to Section 302 of the
                  Sarbanes-Oxley Act of 2002.

         31.1     Certification of Chief Financial Officer pursuant to 18 U.S.C.
                  Section 1350, as adopted pursuant to Section 302 of the
                  Sarbanes-Oxley Act of 2002.

         32       Certification of Chief Executive Officer pursuant to 18 U.S.C.
                  Section 1350, as adopted pursuant to Section 906 of the
                  Sarbanes-Oxley Act of 2002.

         32.1     Certification of Chief Financial Officer pursuant to 18 U.S.C.
                  Section 1350, as adopted pursuant to Section 906 of the
                  Sarbanes-Oxley Act of 2002.

         *        Previously filed with Form SB-2; Commission File No. 333-48675
                  incorporated herein.
         **       Previously filed with Amendment No. 1 to Form SB-2; Commission
                  File No. 333-48675 incorporated herein.
         ***      Previously filed with Amendment No. 5 to Form SB-2; Commission
                  File No. 333-48675 incorporated herein.
         ****     Previously filed with Form 10-QSB 03-31-02; Commission File
                  No. 333-48675 incorporated herein.
         +        Previously filed with Form 10-KSB 12-31-03; Commission File
                  No. 333-48675 incorporated herein.

(b)      FORMS 8-K

         None

                                       30
<PAGE>

                                   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:    November 18, 2004

                                     Summit Environmental Corporation, Inc.



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




                                       31
<PAGE>

                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                          Commission File No. 333-48659

                                  EXHIBIT INDEX

                                   FORM 10-QSB
                    FOR THE QUARTER ENDED SEPTEMBER 30, 2004


         The following exhibits are filed, by incorporation by reference, as
part of this Form 10-QSB:

Exhibit No.                              Description
-----------                              -----------

         The following exhibits are filed, by incorporation by reference, as
part of this Form 10-QSB:

         2.1      Agreement of Merger of July 14, 1998, between Summit
                  Environmental Corporation, Inc. and Summit Technologies,
                  Inc.**

         3.1      Articles of Incorporation of Summit Environmental Corporation,
                  Inc.*

         3.1.1    Amendment to Articles of Incorporation of Summit Environmental
                  Corporation, Inc.**

         3.2      Bylaws of Summit Environmental Corporation, Inc.*

         10.1     1998 Stock Option Plan adopted by Summit Environmental
                  Corporation, Inc.*

         10.3     Limited Exclusive Marketing Bilateral Agreement Between
                  Moonlighting Distribution Corporation-USA and Summit
                  Technologies, Inc. (Poder Sexual, Ultimate Stressex and/or
                  Poder 24)*

         10.4     Limited Exclusive Marketing Bilateral Agreement among B. Keith
                  Parker, individually and as Chairman of the Board and CEO of
                  Moonlighting Distribution Corporation-USA, d/b/a Moonlighting
                  International, and Summit Technologies, Inc. (FireKare,
                  FIREPOWER 911(TM), Super Cold Fire, and FLAME OUT(R))*

         10.6     Exclusive Marketing Bilateral Agreement between Moonlighting
                  Distribution Corporation-USA and Summit Technologies, Inc.
                  (Trim-Away)**

         10.7     November 2, 1998 Amendment to April 27, 1998 Letter of Intent
                  between BioGenesis Enterprises, Inc. and Summit Technologies,
                  Inc., and April 27, 1998 Letter of Intent.***

         10.8     2004 Stock Option Plan adopted by Summit Environmental
                  Corporation, Inc.+

         31       Certification of Chief Executive Officer pursuant to 18 U.S.C.
                  Section 1350, as adopted pursuant to Section 302 of the
                  Sarbanes-Oxley Act of 2002.


                                        1
<PAGE>

         31.1     Certification of Chief Financial Officer pursuant to 18 U.S.C.
                  Section 1350, as adopted pursuant to Section 302 of the
                  Sarbanes-Oxley Act of 2002.

         32       Certification of Chief Executive Officer pursuant to 18 U.S.C.
                  Section 1350, as adopted pursuant to Section 906 of the
                  Sarbanes-Oxley Act of 2002.

         32.1     Certification of Chief Financial Officer pursuant to 18 U.S.C.
                  Section 1350, as adopted pursuant to Section 906 of the
                  Sarbanes-Oxley Act of 2002.

         *        Previously filed with Form SB-2; Commission File No. 333-48675
                  incorporated herein.
         **       Previously filed with Amendment No. 1 to Form SB-2; Commission
                  File No. 333-48675 incorporated herein.
         ***      Previously filed with Amendment No. 5 to Form SB-2; Commission
                  File No. 333-48675 incorporated herein.
         ****     Previously filed with Form 10-QSB 03-31-02; Commission File
                  No. 333-48675 incorporated herein.
         +        Previously filed with Form 10-KSB 12-31-03; Commission File
                  No. 333-48675 incorporated herein.


                                        2