<PAGE>

                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB
              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                  For the quarterly period ended March 31, 2002

                                       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)

                                521 Delia Street
                               Longview, TX 75601
                                  800-522-7841
              ----------------------------------------------------
             (Former name or address, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding twelve months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No __

As of May 6, 2002, there were 13,882,994 shares of the Registrant's Common
Stock, par value $0.001 per share, outstanding.

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


<PAGE>


                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS



                                       2
<PAGE>

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


<Table>
<Caption>
                                                             March 31, 2002 (Unaudited)        December 31, 2001 (Audited)
                                                             --------------------------        ---------------------------
<S>                                                          <C>                               <C>
                                   ASSETS
CURRENT ASSETS
  Cash and Cash Equivalents                                        $    151,737                      $    193,806
  Accounts Receivable, Less Allowance of $44,000                        152,139                           137,460
  Note Receivable - related party                                        20,496                            20,496
  Inventory                                                             772,373                           769,644
  Prepaid Insurance                                                       4,183                             4,183
                                                                   ------------                      ------------
    Total Current Assets                                              1,100,928                         1,125,589
                                                                   ------------                      ------------

PROPERTY AND EQUIPMENT AT COST
  Property and Equipment                                                 57,832                            57,185
  Accumulated Depreciation and Amortization                             (23,587)                          (20,782)
                                                                   ------------                      ------------
    Net Property and Equipment                                           34,245                            36,403
                                                                   ------------                      ------------

OTHER ASSETS
  Prepaid Royalties                                                     711,505                           511,505
  Deposits                                                                1,550                             1,550
  Patents and Licenses                                                2,822,667                         2,297,667
  Less:  Accumulated Amortization                                      (389,319)                         (348,466)
                                                                   ------------                      ------------
    Total Other Assets                                                3,146,403                         2,462,256
                                                                   ------------                      ------------

TOTAL ASSETS                                                       $  4,281,576                      $  3,624,248
                                                                   ============                      ============

                    LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
  Accounts Payable                                                 $    544,766                      $     33,989
  Accrued Payroll                                                        20,093                            20,906
                                                                   ------------                      ------------
    Total Current Liabilities                                           564,859                            54,895
                                                                   ------------                      ------------


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, 13,872,994 & 13,342,994
    shares issued and outstanding respectively                           13,874                            13,344
  Common Stock Subscribed                                                   140                                --
  Additional Paid in Capital                                          7,430,715                         7,121,385
  Deficit Accumulated in Development Stage                           (3,728,012)                       (3,565,376)
                                                                   ------------                      ------------
    Total Stockholders' Equity                                        3,716,717                         3,569,353
                                                                   ------------                      ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                         $  4,281,576                      $  3,624,248
                                                                   ============                      ============
</Table>


                                       3
<PAGE>

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


<Table>
<Caption>
                                                            THREE MONTHS ENDED
                                                                 MARCH 31                     PERIOD FROM
                                                      ------------------------------      AUGUST 31, 1997 TO
                                                          2002              2001            MARCH 31, 2002
                                                      ------------      ------------      ------------------
<S>                                                   <C>               <C>               <C>
SALES                                                 $     41,649      $     42,982      $          620,610

COST OF SALES                                                5,308            35,070                 207,044
                                                      ------------      ------------      ------------------

GROSS PROFIT                                                36,341             7,912                 413,566
                                                      ------------      ------------      ------------------

OPERATION EXPENSES
  Selling, general, and administrative expenses            160,498           226,239               3,484,680
  Amortization                                              40,853            40,587                 561,349
  Depreciation                                               2,805             5,124                  48,556
                                                      ------------      ------------      ------------------
    Total operating expense                                204,156           271,950               4,094,585
                                                      ------------      ------------      ------------------

NET EARNINGS (LOSS) FROM OPERATIONS                       (167,815)         (264,038)             (3,681,019)


OTHER INCOME
  Interest income                                              863             5,572                  58,750
  Interest expense                                              (7)             (928)                (13,485)
  Royalty income                                             4,323                --                   4,323
  Gain/Loss on Sale of Asset                                    --                --                 (13,200)
  Miscellaneous                                                 --                --                  36,213
                                                      ------------      ------------      ------------------
    Total other income (expense)                             5,179             4,644                  72,601
                                                      ------------      ------------      ------------------

NET LOSS BEFORE CUMULATIVE EFFECT OF THE
CHANGE IN ACCOUNTING PRINCIPLE                            (162,636)         (259,394)             (3,608,418)
                                                      ------------      ------------      ------------------

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

NET LOSS                                              $   (162,636)     $   (259,394)     $       (3,728,012)
                                                      ============      ============      ==================

NET LOSS PER SHARE BEFORE CUMULATIVE
EFFECT OF THE CHANGE IN ACCOUNTING PRINCIPLE          $      (0.01)     $      (0.02)     $            (0.40)
                                                      ------------      ------------      ------------------

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

NET EARNINGS (LOSS) PER SHARE                         $      (0.01)     $      (0.02)     $            (0.41)
                                                      ============      ============      ==================

WEIGHTED AVERAGE SHARES                                 13,520,772        12,165,216               9,044,287
</Table>


                                       4
<PAGE>


               SUMMIT ENVIRONMENTAL CORPORATION, INC.
                    (A Development Stage Company)
                      STATEMENTS OF CASH FLOWS
                             (Unaudited)


<Table>
<Caption>
                                                                       THREE MONTHS ENDED
                                                                            MARCH 31                    PERIOD FROM
                                                                 ------------------------------      AUGUST 31, 1997 TO
                                                                     2002             2001             MARCH 31, 2002
                                                                 ------------      ------------      ------------------
<S>                                                              <C>               <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net loss                                                       $   (162,636)     $   (259,394)     $       (3,728,012)
  Adjustments to reconcile net earnings (loss) to cash
  used in operating activities
    Amortization                                                       40,853            40,587                 561,349
    Bad debt expense                                                       --                --                  48,435
    Cumulative effect of change in accounting principle                    --                --                 119,594
    Depreciation                                                        2,805             5,124                  48,556
    Gain (loss) on sale of assets                                          --                --                   2,753
    Common stock issued for services                                       --                --                  67,494
    Change in assets and liabilities
      Accounts receivable                                             (14,679)          (26,046)               (236,805)
      Note receivable                                                      --             9,299                      --
      Inventory                                                        (2,729)           45,763                (772,373)
      Prepaid expenses                                                     --               520                (517,238)
      Accounts payable                                                 10,777           (28,157)                 44,766
      Accrued liabilities                                                (813)           (3,419)                 20,093
                                                                 ------------      ------------      ------------------
        Net cash used in operating activities                        (126,422)         (215,723)             (4,341,388)
                                                                 ------------      ------------      ------------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Acquisition of property and equipment                                  (647)           (1,962)                (72,558)
  Organization costs                                                       --                --                (129,291)
  Acquisition of licenses/patents                                          --                --                 (85,000)
  Proceeds on sale of equipment                                            --                --                  47,440
                                                                 ------------      ------------      ------------------
        Net cash used in investing activities                            (647)           (1,962)               (239,409)
                                                                 ------------      ------------      ------------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Loan proceeds                                                            --                --                   6,554
  Loan principal repayments                                                --            (1,003)                (66,990)
  Loan principal repayments - related party                                --                --                (134,265)
  Proceeds from sale of stock                                          85,000           100,000               4,927,235
                                                                 ------------      ------------      ------------------
        Net cash provided by financing activities                      85,000            98,997               4,732,534
                                                                 ------------      ------------      ------------------

NET INCREASE (DECREASE) IN CASH                                       (42,069)         (118,688)                151,737

Cash - Beginning of Period                                            193,806           428,478                      --
                                                                 ------------      ------------      ------------------

Cash - End of Period                                             $    151,737      $    309,790      $          151,737
                                                                 ============      ============      ==================

SUPPLEMENTAL CASH FLOW INFORMATION
  Noncash investing and financing activities
    Issuance of 500,000 shares of common stock at
    $0.45 per share and $500,000 in accounts payable
    in exchange for patent rights and prepaid royalties          $    775,000      $         --      $          775,000
</Table>



                                       5
<PAGE>


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

The balance sheet of Summit Environmental Corporation, Inc. (the "company"), at
December 31, 2001 has been taken from the company's audited financial statements
at that date. The balance sheet at March 31, 2002, the statement of operations
for the three months ended March 31, 2002 and the three months ended March 31,
2001 and the period from August 31, 1997, to March 31, 2002, and the statement
of cash flows for the three months ended March 31, 2002 and the three months
ended March 31, 2001 and the period from August 31, 1997 to March 31, 2002 have
been prepared by the company without audit. The financial statements have been
prepared in conformity with generally accepted accounting principles and contain
such adjustments as management feels are necessary to present fairly, in all
material aspects, the financial position and results of operation of the
company.

1.       SIGNIFICANT ACCOUNTING POLICIES

         Business Activity

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

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

         Revenue Recognition

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

         Cash

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

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


                                       6
<PAGE>

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


         Inventory

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

         Intangible Assets

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

         Income Taxes

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

         Property and Equipment

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

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

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

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

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

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


                                       7
<PAGE>


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

         Advertising and Marketing

         Advertising and marketing costs are expensed as incurred, which totaled
         $7,814 and $23,136 for the first quarters of 2002 and 2001,
         respectively.

         Use of Estimates

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

         Per Share Information

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

2.       PATENT

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

         On October 11, 2001, Summit and Lady Burd Exclusive Private Label
         Cosmetics entered into a Letter of Intent for the purchase by Summit
         from Lady Burd of the patent and intellectual property rights for the
         formulas to "Indelible Lips or Luscious Lips". The agreement calls for
         incremental payments totaling $350,000 plus 500,000 shares of stock in
         SEVT. A continuing royalty of $0.30 per tube is payable to Lady Burd.
         An advanced royalty of $200,000 will also be paid. An offset to the
         $0.30 royalty will occur causing $0.15 to be paid to Lady Burd until
         Summit has recovered the advanced royalty. The agreement went into
         effect on February 27, 2002.

3.       LICENSES

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


                                       8
<PAGE>

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


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 $9,122 and $8,872 for the first quarters of 2002
         and 2001, respectively.

5.       COMMON STOCK

         Private Placement

         During the fourth quarter of 2001, the board approved a private
         placement offering for 2,000,000 shares of common stock at $0.50 per
         share. 70,000 of these shares were issued during the fourth quarter.
         During first quarter 2002, 170,000 shares were sold.

         Common Stock Options

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

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

         Warrants

         During the fourth quarter of 2001, the company issued warrants to
         acquire 35,000 shares of common stock at $1.00 per share, exercisable
         through April 29, 2005 in conjunction with the above mentioned private
         placement. During first quarter 2002, warrants issued in conjunction
         with the private placement were for 85,000 shares.

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,


                                       9
<PAGE>

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


         1998 (see Note 2). The purchase agreement requires the company to pay
         BioGenesis a periodic royalty of $.50 per 16-oz. can and an equivalent
         (approximately 7 percent) on all other product categories using the
         fire suppressant technology. One-half of all periodic royalty fees due
         to BioGenesis will be credited against the advance royalty fee (until
         fully recovered) and one-half will be paid to BioGenesis in cash on the
         30th of each month based upon invoiced sales through the close of the
         preceding month. The company has prepaid royalties to BioGenesis
         totaling $511,505 as of both December 31, 2001 and March 31, 2002.

7.       CONCENTRATIONS

         Approximately 61 percent of the sales in the first quarter of 2002 were
         made to four customers and 83 percent of the sales in the first quarter
         of 2001 were made to two different customers.

8.       INCOME TAXES

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

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

9.       AGREEMENTS

         In January 2002, Summit entered into a joint venture agreement with
         Earth Safe Technology, Inc. to market products manufactured for Summit
         by BioGenesis pursuant to Summit's patent ownership in Mexico.

         In February 2002, Summit entered into a distribution agreement with
         Tianyang Group for the sale of products manufactured by Summit. These
         products are to be sold to Tianyang for production and resale in the
         Peoples Republic of China


         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.


                                       10
<PAGE>


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

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

 RESULTS OF OPERATIONS - FIRST QUARTER OF 2002 COMPARED TO FIRST QUARTER OF 2001

       Summit Environmental's gross receipts for Q1 2002 were $45,972 ($41,649
sales and $4,323 royalties) compared to $42,982 in Q1 2001. The gross margin for
sales in Q1 2002 was 87% compared to 18.4% for Q1 2001. There is no cost of
sales applied to the royalties.

       Operating expenses decreased 25% for Q1 2002 compared to Q1 2001.
Operating expenses decreased by $67,794 from $271,950 in Q1 2001 to $204,156 in
Q1 2002.

       Amortization and depreciation were $43,658 in Q1 2002 and $45,711 in Q1
2001.

       Summit had a net loss from operations of $167,815 in Q1 2002, down from
the net loss of $264,038 in Q1 2001.

       Management attributes these decreases to the following:

                  Marketing expense from $23,136 to $6,814
                  Officer compensation from $46,258 to $30,462
                  Travel and entertainment from $10,727 to $8,600
                  Office and Warehouse Rent from $8,872 to $7,232
                  Depreciation from $5,124 to $2,805
                  Office expenses from $7,299 to $5,513
                  Office Salaries from $25,836 to $19,860
                  Audit fees from $16,565 to $8,964
                  Set-up costs from $7,939 to $1,478

         OVERVIEW

         Last year, we finalized some of the distribution agreements and product
certifications, in conjunction with our vision to market our products through
strategic alliances. Of special note, agreements were executed for Mexico,
China, Scandinavia and Canada.

         In Mexico, a joint venture agreement between Summit and Earth Safe
Technologies will sell FLAMEOUT(R) and several of our remediation products. The
primary customer for the joint venture will be Pemex, the national oil company
of Mexico. FLAMEOUT(R) was approved by Pemex as an acceptable replacement for
3M's AFFF. Numerous contaminated sites from oil field production will become
projects for water and soil remediations.


                                       11
<PAGE>


         In China, the Tianfa Corporation and the Tianyang Group became the
master distributor for FLAMEOUT(R). The company agreed to assist and advise in
the manufacturing of aerosol cans utilizing FLAMEOUT(R), producing a product
similar to FIREPOWER 911(TM). We will receive a royalty from the wholesale sale
of each can produced.

         In Scandinavia, Tecno Supplies began selling FIREPOWER 911(TM) in
February 2001. FLAMEOUT(R) was utilized in initial tests with the Norwegian Air
Force and Exxon of Norway for the purpose of replacing 3M's AFFF.

         In Canada, Summit and 614575 Alberta Limited executed an agreement
allowing the selling of FLAMEOUT(R) for resale in portable and mobile fire
extinguishing systems for home and property respectively. We granted to 614575
Alberta Limited the exclusive right to FLAMEOUT(R) for systems as manufactured
by 614575 Alberta Limited. For the granting of the exclusivity, we receive a
royalty from each unit sold.

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

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

         We set out to place FIREPOWER 911(TM) into a retail environment where
pricing was not an issue to iTs success. When initial sales were made to grocery
supply companies, grocery stores and convenience stores, there was no effective
marketing/merchandising follow-up network in place to facilitate the in-store
service requirement held by the large store chains across the country. The
existing agreement with Convenience Service Group did not meet the criteria and
was terminated in order that we could take a new direction with FIREPOWER
911(TM).

         Still believing in the uniqueness of an aerosol product providing
safety and ease of use for all consumers, we negotiated an agreement with a
firm, Triple-S Marketing, to provide the in-store service required by some of
the nation's larger retailers. We focused on Triple-S because of its emphasis on
home improvement stores. In February 2002 Lowe's Home Improvement Centers
scheduled FIREPOWER 911(TM) for an in and out sale scheduled for October
2002.Approximately (150-200) selected Lowe's locations are scheduled to conduct
this test market in conjunction with the National Fire Prevention Month.


                                       12
<PAGE>


         Last year, the first shipment of FIREPOWER 911(TM) was packaged for
international sales with foreign language labels. Initial first market shipments
ranging from 2,000 to 5,000 cans went to Chile, Hong Kong and Japan. 5,000 cans
were sold to the public by the local fire departments in Chile. Summit and
Marketing Perspectives Incorporated ("MPI") satisfied the label requirements and
insurance requests for completed product liability coverage. The second order
was anticipated as early as August 2001, according to information supplied to us
by MPI. The FIREPOWER 911(TM) approval was delayed. However, in December 2001,
the anticipated approval was received. MPI provided to us in January 2002 the
official Chilean government approval for FIREPOWER 911(TM) for both Class A and
B fires. These tests were conducted at the University of Chile. The approval
certificates can be seen on our website. The first use of "FIREPOWER LIQUIDO
911(TM)" will be for the federal police (Carabineros) as part of their equipment
belt as a tool for riot control due to such occurrences as fire bombs being
thrown into crowds at large public events such as soccer matches.

         In March 2002, we met with Reliant Interactive Media Group for the
purpose of taking three to four of our products on QVC and Home Shopping Network
International. Reliant is in the process of merging with Thane Distribution
Group. Therefore, our agreements have been executed with Thane. Of special note,
Reliant founders Kevin and Tim Harrington are noted developers of infomercials
and direct response television. They represent such notables as Bruce Jenner,
Kathy Smith and Tony Little. The companies have agreed to place our products in
the shopping channel venues of QVC and develop 30 minute infomercials for these
products. One such product is FIREPOWER 911(TM).

         One week before meeting with Reliant, we met with QVC at its
headquarters in Pennsylvania. FIREPOWER 911(TM) was approved for programming. We
are in the process of satisfying the Quality Assurance requirements with QVC.
The anticipated start date of April 2002 was delayed due to the new FIREPOWER
911(TM) can which will be a second generation product. The new FIREPOWER 911(TM)
is due out in July.

         In November 2001, we executed a distributorship agreement with a direct
sales company, Lighthouse America. Lighthouse, dba Teamfire, previously sold a
non-rated fire extinguishing product as a fire extinguisher. This resulted in
regulatory enforcement action which halted Lighthouse's activity. When FIREPOWER
911(TM) was discovered by Lighthouse, an agreement was negotiated. FIREPOWER
911(TM) is the only rated and validated fire extinguisher in an aerosol can in
the marketplace. Teamfire began introducing FIREPOWER 911(TM) to its base of
7000 dealers. We also receive a royalty on the sale of all FIREPOWER 911(TM)
sold by Teamfire. Second and third orders were received by us during the first
quarter 2002. Receivable royalties were also paid.

         Our strategic alliance partner, International Aero, Inc., is the
world's largest reconfiguration company for commercial aircraft. Summit and
International Aero have been working on the minimum performance standards
requirements established by the Federal Aviation Administration. Previously, the
handheld fire extinguishers onboard all commercial aircraft contained Halon
1211. The Geneva Peace Conference banning of Halon 1211 included a catastrophic
exposure clause called Mission Critical that allowed the airline industry an
extension of time before these extinguishers faced mandated replacement. The
testing protocol for selecting the replacement agent has been published by the
FAA. FLAMEOUT(R)


                                       13
<PAGE>


meets all of the technical criteria required by the performance standards.
During 2000, the actual Gross Volume Production Tests of FLAMEOUT(R) on jet fuel
and heptane were conducted. The initial performance tests were conducted at
International Aero's new licensed fire testing facility, during 2001. In
December 2001, the FAA and US DOT published the final draft of products approved
as replacements for Halon. FLAMEOUT(R) has been placed on the list of approved
replacements.

         International Aero's distribution rights extend to the aviation
industry, the United States Military, and the United States Gulf Coast petroleum
industry. In conjunction with the research department at International Aero, we
are developing an alternative to another fire-fighting agent, AFFF. AFFF, used
primarily for petroleum fires, is a known cancer-causing agent. Summit's intent
with International Aero is to develop a non-toxic, non-corrosive, biodegradable
alternative for AFFF. FLAMEOUT(TM) was tested at the Ansul fire test facility in
Marinette, Wisconsin in April 2000. The foam stability test was very successful.
FLAMEOUT(TM) was the only product tested to pass the UL162 encapsulation and
emulsification test. FLAMEOUT(R) has been approved as replacements for 3M's AFFF
in Poland and by Pemex in Mexico. We began tests in April with the United States
Air Force for the purpose of obtaining a military specification number for
military approval to replace AFFF. Due to severe environmental problems and
large fires, 3M left the AFFF market in December 2001. The void created has
opened a whole new field for replacement products for AFFF. Now that the toxic
issues surrounding AFFF are out in the open, the non-toxic, biodegradable
features of FLAMEOUT(R) are placing the product as a frontrunner for solutions
all over the globe.

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

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

         Also incorporated into the test of our Type III concentrate was the
addition of Type II


                                       14
<PAGE>


concentrate and Type II ready-to-use tests for additional approvals. These
additional approvals also increase the size of the market for the product and
the amounts of product to be used.

          All parties concede that this testing process has been very tedious
and time-consuming. The reward for us will be a head start in the market.
Regardless of the unknowns with which we have dealt, we and our product have not
experienced setbacks which prevent the direction of moving closer to an expected
final Quality Products Listing. The lab conducting the test protocols for the
MIL-PRF-85704C has notified us that ULTIMATE CLEAN 668(TM) has successfully
conformed with the requirements for corrosion, crazing, painted surfaces,
acrylic surfaces, and water and acid stability. The areas of complication for
approval stem from the fact that ULTIMATE CLEAN 668(TM) is an aqueous based
product. The test protocol, which is 50 years old, was originally designed for
petrochemical products. We are still committed, as is BioGenesis, to the
completion of the test protocol. The successful completion means large numbers
of sales for us due to our marketing alliance with International Aero, Inc. The
test to satisfy final requirements are still in process. Through our South
American alliance partner, we submitted material, product, and previous
certifications to the authorities in Brazil and Argentina in order to obtain the
appropriate approvals and ratings for sale in the Mercosur area of South
America. The existing certifications on FLAMEOUT(R) have been accepted. Last
year, the actual state fire department tests began taking place.

         In Brazil during fourth quarter 2001, FLAMEOUT(R) passed some very
critical Class B tests. We introduced FLAMEOUT(R) into Brazil through MPI due to
the elimination of the availability and sale of AFFF. This added to the length
of time before final product approval but greatly increased the size of the
marketplace. This will clear the way for us to begin sales through Marketing
Perspectives Incorporated ("MPI"). Their distributor in Brazil has orders to be
filled promptly when the certification process is completed. The approval
process will also be accepted in the other Mercosur Pact countries--Argentina,
Uruguay and Paraguay. Summit and MPI have entered into a Joint Venture Agreement
to produce FLAMEOUT(R) in South America. In order to fill product orders for
government contracts, offices, installations and airports, the product must be
produced within the Mercosur. Summit and MPI are in the process of producing the
first production run of FLAMEOUT(R). Tests will be conducted on the South
American produced FLAMEOUT(R) in order to verify its performance against the
standard already established by the completed tests of FLAMEOUT(R) shipped to
Brazil in 2001.

         During the third quarter of 2000, management gave Paula Parker,
Vice-President for Shareholder Relations, a directive to develop a new product
line, a color cosmetic line to compliment the already developed skin care
cosmetic line, Pannache. This product line is environmentally friendly and made
with premium botanical and natural essential oils and vitamins.

         The idea for the star product of the color line was to develop a
semi-permanent, long-wearing, no smear or stain lip color. Companies like Avon,
Beauty Control, Max Factor, Revlon, Cover Girl and Maybelline have developed
products they tout as long-wear, no smear; however, we believe they do not
perform as advertised. Our product - Luscious Lips - will stay on 8 to 10 hours
and will not come off until removed with remover. The development phase began in
September 2000 with final formula approvals in June 2001. We received four of
the twelve selected colors in August and began the first of two directed test
markets. One market was to sell product directly to performing groups such as
dance


                                       15
<PAGE>


lines, dance schools, high school drill teams, cheerleaders and twirling groups.
Prior to the beginning, we secured the endorsements during July for the Miss
Texas and Miss Arkansas Pageants. Both Stacy James (Miss Texas 2001) and Jessie
Ward (Miss Arkansas 2001) were using Luscious Lips during their state pageants
when they won their respective pageants as well as the Miss America Pageant.
Stacy was in the top twenty and Jessie was a top ten finalist in the Miss
America Pageant.

         Pageants have been or are being held every weekend from October 1,
2001, through July, 2002. There will be over 50,000 contestants introduced to -
and many using - Luscious Lips in the Arkansas pageant system. Jessie Ward's
photos appear in all official company publications and web sites. The official
web address is www.lusciouslips.cc and www.pannachelusciouslips.com.

         The initially established dealer network attained a closing ratio of
close to 100%. When purchasing the initial inventory for a dealer, a dealer
purchases at 50% off of retail and makes 100% profit on resale. Our margin is at
106%. The direct sales test market directed to drill teams and cheerleading
groups produced a 100% closing ratio. Pannache became an associate member of the
Texas High School Dance and Drill Teams Association, whose state convention was
held in Houston, Texas, January 3-5, 2002. Over 100 high schools requested
appointments for presentations for product use for the team and our concept of
using Luscious Lips as its fund raising product. There are 178,000 drill team
participants in high schools in Texas each year. Couple this with the middle and
high school cheerleaders, and the market is over 500,000 participants in Texas
alone. August of 2002 will see targeted fund raising programs especially
designed for these groups. The initial dealer locations are throughout Northeast
Texas, Arkansas, Missouri, and Georgia.

         The success of the test markets indicated to us that expanding the
marketing toward performing groups and through direct distributors and direct
response television would create high-profit-margin venues. The sale of a single
tube of Luscious Lips wholesale creates a greater profit margin than the sale of
a can of FIREPOWER 911(TM).

         We successfully negotiated with Lady Burd Exclusive Private Label
Cosmetics for the ownership of the patent and property rights for the product
Luscious Lips. Luscious Lips was developed at Lady Burd by Dr. Alex Hammer. Dr.
Hammer is noted for co-authoring the Food and Drug Administration Cosmetic
Manual. Dr. Hammer spent over 20 years at Estee Lauder before coming to Lady
Burd.

         The cosmetic industry is a $300 billion industry worldwide with Avon
being the largest, controlling only 7% of the market share. Therefore, no one
company can control the market. Prices are always stable while sales are always
consistent.

         Pannache completed an endorsement agreement with Jessie Ward, Miss
Arkansas, for the remainder of her reign and afterwards. Pannache/Luscious
cosmetics have been named the official "Wardrobe showing sponsor" for the Miss
Arkansas Pageant.

         As a result of Summit's and Lady Burd's previous successful
negotiations for the patent rights to Luscious Lips, Lady Burd appointed Summit
as the exclusive distributor for all of Lady Burd's products (over 100) within
the area formerly served by the Dallas, Texas Apparel Mart Showroom. The


                                       16
<PAGE>


show room inventory was moved to our headquarters in April 2002. The first
official day of business was May 1, 2002. The assignment of the distributorship
to Summit by Lady Burd provides 3500 Lady Burd customers. We have moved to a new
location where showroom facilities are now provided.

         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 believe that, due to the approval, listing and rating of FIREPOWER
911(TM) as a fire extinguisher, a niche market has been created. This was
supported by actions taken by the USEPA, which has been mentioned previously,
and actions of the Connecticut State Fire Marshal's Office and the California
State Fire Marshal's Office and most recently, the office of the State Fire
Marshal of Texas.

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

         Due to the capabilities of FLAMEOUT(R), we applied for the minimum fire
extinguisher rating in order to establish FIREPOWER 911(TM) as a fire
extinguisher and satisfy the State Fire Codes. The specific fire code is
ANSI/UL8 and ANSI/UL711, set forth in the NFPA Standard 10. NFPA 10 establishes
the requirements for listing and rating portable fire extinguishers.

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

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


                                       17
<PAGE>


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

         In other states where Non-Halon certification has not become effective
to date, there is still the NFPA 10 requirement that all aerosol cans must be
tested, listed, and rated as a fire extinguisher. FIREPOWER 911(TM) is the only
product that possesses the validated listing and rating for an aerosol fire
extinguisher Several issues have slowed down the marketing of FIREPOWER 911(TM).
Its formula is FLAMEOUT(R), a technology for fire suppression, not merely soap
in an aerosol can. A specific type of aluminum is required for the container to
meet the ANSI/UL8 portion of the validation and listing tests. The size and type
of can required to hold the FLAMEOUT(R) by the very rigid standard for fire
extinguishers is not manufactured in the United States. We must bring the empty
shells in from Madrid, Spain.

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

         When attempts to market a product like FIREPOWER 911(TM) are met with
"copycats" which have not passed the scrutiny of the validations, listings and
ratings, an education issue is created which must be carried out at the buyers'
level. For this education effort to have meaningful effect, enforcement action
is required by the state fire marshals' offices. These enforcement actions are
public record. We now have our marketing and merchandising representatives
equipped with information showing the buyers that there are issues other than
the cheapest product in an aerosol can. The Texas State Fire Marshal's office
has been instrumental in enforcing the regulations with regards to NFPA 10, the
required standard for portable fire extinguishers. These regulatory actions on
copycat products of FIREPOWER 911(TM) have seen several products removed from
the shelves of retailers and from programming on shopping channels. We have been
working with several product rep groups making presentations into several of the
large mass merchandisers. With the approval of FIREPOWER 911(TM) for an "in and
out" test market at Lowe's, for airing on QVC through Thane Distribution Group
and an infomercial, Summit feels that it has successfully neared the end of the
education curve with regard to aerosols.

         Presenting the information in this format last year, we negotiated an
agreement with a national marketing and merchandising company, Triple S
Marketing, that places the products they represent into two of the largest home
building products stores in the country. The senior buyer for one of these
chains of stores has approved FIREPOWER 911(TM). A redesign of the home safety
products section has been completed at Lowe's Home Improvement Centers and
FIREPOWER 911(TM) is scheduled to appear in an estimated 150 to 200 stores
during Fire Prevention Month, October 2002.

         Over three years ago, we negotiated a contract with Wal-Mart on a
regional basis in Florida, Southern Georgia and Southeastern Alabama. When a
category buyer from Wal-Mart decided to remove FIREPOWER 911(TM) from the
regional purchasing agreement and take it to a full category


                                       18
<PAGE>


purchase, management was forced to "not fill" in-hand purchase orders. Full
category meant supplying as many as 4,000 stores in a brief time. However, the
major obstacle was the fourteen day fulfillment deadline on new purchase orders.
The time required for the manufacturing of the shells for FIREPOWER(TM) is five
weeks. Management knew that the initial news of the Wal-Mart contract would be
great for the new public company, but failure to meet unrealistic production
requirements would be extremely detrimental.

         During the last week of April 2001, a Wal-Mart opportunity once again
presented itself. Through one of our direct dealers, FIREPOWER 911(TM) has once
again been approved for Wal-Mart. However, this time it is on a local store
district purchase program. Once the contract starts, it continues without change
for six months. The completed applications, initial insurance certification, and
bar codes registrations were sent to the district supervision level for a
specific region of Wal-Mart on May 1, 2001. Our dealer for that area has
submitted his final order through the stores. The same Summit dealer in the
midwest is still working on this project.

         We have executed an agreement for the sale of FIREPOWER 911(TM) with
Lighthouse America and its direct sales company TEAMFIRE. TEAMFIRE previously
had 7,000 direct dealers selling a non-rated portable fire product that was
classified as a portable fire extinguisher by State Fire Marshals. TEAMFIRE's
selling efforts were halted due to Fire Marshal regulatory citations. TEAMFIRE
has a great appreciation for FIREPOWER 911(TM) because of its experience with
the Fire Marshal's offices. With FIREPOWER 911(TM) which is the only rated and
validated portable fire extinguisher in an aerosol can in the world, TEAMFIRE
feels that they will quickly begin to move FIREPOWER 911(TM) through their
established network of direct dealers. Before regulatory measures halted
TEAMFIRE's selling, previous sales were $1.6 million from January through
August, 2000. The first shipment of product to Lighthouse occurred in November,
2001. Additional shipments occurred during February, 2002.

         We have been in negotiations since October 2000 with QVC for the sale
of FIREPOWER 911(TM). FIREPOWER 911(TM)'s front runner, Chief's Choice (private
label FIREPOWER 911(TM)), was the initial aerosol fire suppressant sold on QVC.
Chief's Choice received the QVC award for Best of the Quest. While FIREPOWER
911(TM) was going through the validation and listing process at Applied Research
Laboratories, "ARL," QVC was notified of the NFPA standards requirement held by
State Fire Marshals' offices by our management. Another "copycat" product was
substituted for Chief's Choice, which also violated the requirements for which
we had chosen to qualify in order to be in compliance in all 50 states. Last
year, this "copycat" product was removed from programming at QVC, due to action
taken by the Texas State Fire Marshal's office and we were notified that the
category buyers at QVC had approved FIREPOWER 911(TM) one-liter rated fire
extinguisher for purchase. We were told that once the legal department had been
cleared, scheduling of programming and initial purchases would begin. During
April 2001, we were notified that the QVC legal department would be requesting a
letter of verification that FIREPOWER 911(TM) is legal in all 50 states. This
letter is available under the "Standards and Certifications" directory item on
our website. In March 2002, management met with the buyers at QVC and received
initial programming approval. The next week, management met with marketing
representatives from Reliant International Media and Thane Distribution Group.
We entered into an agreement with Thane for the purpose of placing FIREPOWER
911(TM) on International Home Shopping network, producing a 30 minute
infomercial for FIREPOWER 911(TM) and the approval of three of the


                                       19
<PAGE>


cosmetic products from the our Pannache/Luscious Cosmetics division which will
be discussed later. Currently, we are going through the quality assurance
process of product preparation for marketing at QVC. Initial product airings are
expected as early as July 2002.

         FLAMEOUT(R) was submitted to the United States Forestry Service through
its technology development program in order to satisfy the requirements for
qualification testing as a Wildland Fire Chemical. This test protocol will be
ongoing for eighteen months. The Forestry Service requested and we supplied the
actual test product in order to complete the protocol in June 2001. Through our
Canadian Strategic Alliance Partner, Mark Hayes dba 614575 Alberta Limited, the
aerial fire fighting company Pro Air, and the Canadian Forestry Service are
following the U.S. Forestry Service's test. Feedback is that FLAMEOUT(R) is
performing very favorably. The reports received by us are that the Canadian
Forestry will accept the U.S. Forestry approval for immediate sales in Canada.
We have been notified of pending orders at Pro Air.

         FLAMEOUT(R) will be tested as a wetting agent and fire suppression
foam. When approved, FLAMEOUT(R) can be used in catastrophic wildfires that
occur every year. Our product, in unofficial tests, has outperformed every
product with which it has been compared. Management knows this first-hand from
being on the actual fire lines in Florida. The twelve-month product stability
test concludes in June 2002. Once concluded, the remaining testing revolves
around (1) combustion retarding effectiveness, (2) optimum mixing, (3)
pumpability, (4) abrasion, (5) field visibility, and (6) operational field
evaluation. We believe that approval will occur during August 2002 based on
information received.

         International marketing agreements were negotiated and executed last
year. A key element of these agreements is the revenue sharing clause that
provides us profit sharing from the tools, devices or mechanisms into which
FLAMEOUT(R) is introduced for resale. Summit assisted its distributor partners
with necessary testing, listing, ratings and certifications in order to complete
the registration process in each of these countries.

         FLAMEOUT(R) was submitted for official testing in Warsaw, Poland as an
alternative for 3M's AFFF. 3M announced mid-year 2001 that it was withdrawing
from the AFFF market. AFFF is a very toxic product and exposure can cause
cancer. Summit's product was officially approved in February 2002 by the Polish
National Institute of Hygiene as an alternative replacement for 3M's AFFF.

         During December 2001, FLAMEOUT(R) was submitted to laboratory officials
at Pemex, the national oil company of Mexico. In January 2002, we received
copies of the official approvals for FLAMEOUT(R) for the purpose of replacing
AFFF at Pemex.

         In 2001, we began discussions with a Canadian company for the purpose
of using FLAMEOUT(R) exclusively in their gasoline and battery generated home
fire extinguishing systems, The Fire Caddy, which can be seen on our website
under the photo album. The agreement with 614575 Alberta Limited allows for the
placement of 5 gallons of FLAMEOUT(R) within each unit sold and an additional 5
gallons of FLAMEOUT(R) as back-up to be sold with each Fire Caddy. The agreement
between Summit and Alberta Limited allows Alberta Limited to purchase, at
wholesale, FlameOut(R) for the Fire Caddy System. By


                                       20
<PAGE>


virtue of the exclusive arrangement between us and Alberta Limited, we receive
royalties on the sale of each of the Fire Caddy units.

         In China, Summit and The Tianfa Corporation and The Tianyang Group
executed an agreement for the sale of FLAMEOUT(R) and technical assistance for
canning aerosol can fire extinguishers. Tianfa Corporation is China's leading
energy company and is listed as a Class A Stock on the Shanghai Stock Exchange.
The agreement allows Tianfa/Tianyang to purchase FLAMEOUT(R) at wholesale and
then repackage FLAMEOUT(R) in aerosol cans in China, manufacturing a product
similar to FIREPOWER 911(TM). We will in turn receive a royalty on all wholesale
sales of aerosol cans.

         During February 2001, we sold our first order of FIREPOWER 911(TM) to
our distributor, Tecno-Supplies, in Norway. In April 2001, Tecno-Supplies
ordered its first shipment of FLAMEOUT(R). A portion of this initial order has
been sold to Exxon of Norway. Tests results have been favorable and are
concluding. Currently, we are preparing to supply documentation and product for
FLAMEOUT(R) approval in the North Sea.

         Summit's test for securing the military specification number
MIL-PRF-85704C, which will enable our ULTIMATE CLEAN 668(TM) jet engine cleaner
to be listed with the Department of Defense, Quality Products Listing, has
proceeded into classification tests for Type II and III concentrates and Type II
ready-to-use. The testing for this non-corrosive approval has resulted in some
adjustments to the formula for the test on ceramic and acrylic finishes. This
test is also being done in the "water soluble" category. To our knowledge, there
are no other products that are aqueous-based which can accomplish the cleaning
requirements of the test protocol or the actual engine cleanings. The expansion
from the initial Type III approvals to include the two categories of Type II
greatly increased the market potential for ULTIMATE CLEAN 668(TM). Technical
testing confirmation for protocols was received in May 2001. While awaiting a
slotting appointment for the completion of the physical application test in
cleaning test engines, we are finalizing the stability and blending
requirements. Through our strategic alliance partner, International Aero, we
have initial sales to be made to major airlines such as United, Continental,
Delta, Northwest and Eastern airlines. The recent increase in jet fuel costs has
heightened the airlines' interest in ULTIMATE CLEAN 668(TM). During September,
2001, formal application for the physical test was submitted to and accepted by
the United States Navy.

         Our development of ULTIMATE ABSORB 1103(TM) has led to our negotiating
the purchase of the patents, formulas, and intellectual property rights. Of
special importance to this agreement is the completion of the
never-before-issued EPA Landfill Stamp approval. ULTIMATE ABSORB 1103(TM)
already meets or exceeds the requirements for EPA (as non-toxic), USDA, FDA, WHO
and California Title 22 approvals. However, the EPA Landfill Stamp allows for
encapsulated and absorbed materials to be deposited in landfills anywhere. On
April 2, 2001, we were notified that we had successfully passed protocol for
stabilized heavy metals in the hazardous materials containment portion of this
testing. No other product has ever completed this portion of the test protocol.
We have introduced the absorbent in South America, Scandinavia, Europe and in
several industries within the U.S. Management has met and is in negotiations
with a large, well established supplier of absorbents. The negotiations couple
Summit's ULTIMATE ABSORB 1103(TM) with an already established product with
national distribution in


                                       21
<PAGE>


place at major retailers. The agreement is currently being negotiated between
both parties and details will be announced, if completed, during May 2002.

         Pannache/Luscious Cosmetics has successfully established test markets
for direct dealer sales and competition group sales, two very high volume
markets. Both test markets demonstrated nearly 100% closing ratios. The profit
margins are greater than any of our other products whether sold wholesale or
direct to the consumer. We have executed an exclusive distribution agreement
with Lady Burd Exclusive Private Label Cosmetics. The Dallas Apparel Mart
Showroom for Lady Burd has been closed. Product and over 3500 customers have
been transferred to our new offices which opened May 1, 2002. Sales personnel
have been added in the home office, Dallas and Houston in an effort to begin
selling over 100 products in the Lady Burd line now being Private Labeled by
Pannache.

         The new innovative fund raising program featuring Luscious Lips was
kicked off in January selling Luscious Lips through high school drill teams,
cheerleading groups and twirling groups. After attending the Texas Association
of High School Drill Team and Dance Teams we received over 100 high schools
prequalified for both product purchase for their dance team and sales as their
fund raiser. International expansion is also anticipated from trade shows during
2002 which will include Dallas, Italy, Hong Kong and Canada.

         Plans for a 60-second or 120-second info-commercial were put in motion
for Luscious Lips during fourth quarter 2001. In January, Pannache and Thane
Distribution Group executed an agreement for Luscious Lips for infomercial
sales. Also, two additional products from the Pannache/Luscious Cosmetics line
have been approved for airing on QVC.

         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: our inability 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 our fire
suppressant products.


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.**


                                       22
<PAGE>


       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    -   Asset Purchase Agreement between Lady Burd Exclusive
                  Cosmetics, Inc. and Summit Environmental Corporation, Inc.
                  dated February 2002

      10.9    -   Distributor Agreement between Lady Burd Exclusive Cosmetics,
                  Inc. and Summit Environmental Corp. Inc. dated May 1, 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.


(b)      FORMS 8-K

         None


                                       23
<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:  May 20, 2002                 Summit Environmental Corporation, Inc.



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


                                       24
<PAGE>

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

                    INDEX TO EXHIBITS TO FORM 10-QSB 03-31-02

<Table>
<Caption>
   Exhibit                                Description
   -------                                -----------
<S>               <C>
       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    -   Asset Purchase Agreement between Lady Burd Exclusive
                  Cosmetics, Inc. and Summit Environmental Corporation, Inc.
                  dated February 2002

      10.9    -   Distributor Agreement between Lady Burd Exclusive Cosmetics,
                  Inc. and Summit Environmental Corp. Inc. dated May 1, 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.
</Table>


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