**FORM      10-QSB**

**Summit      Environmental Corporation, Inc.**

| Texas(state                ofincorporation) | 333-48659(Commission                File Number) | 73-1537206(IRS                EmployerI.D.                Number) |
|---------------------------------------------|--------------------------------------------------|-------------------------------------------------------------------|

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**TABLE      OF CONTENTS**
|                                                                                                      |   | Page  |
|-----------------------------------------------------------------------------------------------------------|--------|------------|
|                                                                                                      |   |       |
| PART                  I - FINANCIAL INFORMATION                                                           |   | 3          |
|                                                                                                      |   |       |
| Item                  1. Financial                  Statements                                            | 3      |
|                                                                                                      |   |       |
| Item                  2. Management’s                  Discussion and Analysis or Plan of Operation | 17     |
|                                                                                                      |   |       |
| Item                  3. Controls                  and Procedures                                         | 20     |
|                                                                                                      |   |       |
| PART                  II - OTHER INFORMATION                                                              |   | 21         |
|                                                                                                      |   |       |
| Item                  1. Legal                  Proceedings                                               | 21     |
|                                                                                                      |   |       |
| Item                  2. Unregistered                  Sales of Equity Securities                         | 21     |
|                                                                                                      |   |       |
| Item                  6. Exhibits                  and Reports on Form 8-K                                | 22     |
|                                                                                                      |   |       |
| SIGNATURES                                                                                                |   | 25         |

----

**PART      I - FINANCIAL INFORMATION**

**Item        1.    **Financial        Statements****

| Condensed Balance Sheets September 30,              2006              (Unaudited) and December              31, 2005 (Audited)  |   | 4  |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|---------|
| Statements of Operations (Unaudited)              Three              Months Ended September 30, 2006 and 2005                   |   | 5  |
| Statements of Operations (Unaudited)              Six              Months Ended September 30, 2006 and 2005                     |   | 6  |
| Statements of Cash Flows (Unaudited)              Six              Months Ended September 30, 2006 and 2005                     |   | 7  |
| Notes to Financial Statements               (Unaudited)                                                                    |   | 8  |

----

| **SUMMIT                  ENVIRONMENTAL CORPORATION, INC.** |
|-------------------------------------------------------------|
| **CONDENSED                  BALANCE SHEETS**               |

|                                                              |   | September                  30, 2006 (Unaudited) |        | December                  31, 2005 (Audited) |   |
|-------------------------------------------------------------------|--------|-------------------------------------------------|-------------|----------------------------------------------|--------|
| **Assets**                                                        |   |                                            |        |                                         |   |
| **Current                  Assets**                               |   |                                            |        |                                         |   |
| Cash                  and Cash Equivalents                        |   | $                                               | 91,222      |                                         | $      | 316,798 |   |
| Accounts                  Receivable, less allowance for doubtful |   |                                            |        |                                         |   |   |   |
| accounts                  of $169,317                             |   |                                            | 204,024     |                                         |   | 356,429 |   |
| Inventory                                                         |   |                                            | 969,453     |                                         |   | 1,056,890 |   |
| Restricted                  Cash                                  |   |                                            | 50,000      |                                         |   | 50,000 |   |
| Prepaid                  Expenses                                 |   |                                            | 116,651     |                                         |   | 117,932 |   |
| Total                  Current Assets                             |   |                                            | 1,431,350   |                                         |   | 1,898,049 |   |
|                                                              |   |                                            |        |                                         |   |   |   |
| **Property                  and Equipment at Cost**               |   |                                            |        |                                         |   |   |   |
| Property                  and Equipment                           |   |                                            | 369,064     |                                         |   | 359,962 |   |
| Accumulated                  Depreciation and Amortization        |   |                                            | (69,991     | )                                            |   | (59,150 | ) |
| Net                  Property and Equipment                       |   |                                            | 299,073     |                                         |   | 300,812 |   |
|                                                              |   |                                            |        |                                         |   |   |   |
| **Other                  Assets**                                 |   |                                            |        |                                         |   |   |   |
| Prepaid                  Royalties                                |   |                                            | 451,938     |                                         |   | 460,354 |   |
| Deposits                                                          |   |                                            | 2,118       |                                         |   | 2,180 |   |
| Patents                  -net of accumulated amortization         |   |                                            |        |                                         |   |   |   |
| of                  $ 1,246,882 and $ 1,128,133                   |   |                                            | 1,128,118   |                                         |   | 1,246,867 |   |
| Licenses-net                  of accumulated amortization         |   |                                            |        |                                         |   |   |   |
| of                  $ 79,407 and $ 63,120                         |   |                                            | 246,313     |                                         |   | 262,600 |   |
| Total                  Other Assets                               |   |                                            | 1,828,487   |                                         |   | 1,972,001 |   |
|                                                              |   |                                            |        |                                         |   |   |   |
| **Total                  Assets**                                 |   | $                                               | 3,558,910   |                                         | $      | 4,170,862 |   |
|                                                              |   |                                            |        |                                         |   |   |   |
| **Liabilities                  and Stockholders' Equity**         |   |                                            |        |                                         |   |   |   |
| **Current                  Liabilities**                          |   |                                            |        |                                         |   |   |   |
| Accounts                  Payable                                 |   | $                                               | 177,706     |                                         | $      | 270,478 |   |
| Notes                  Payable                                    |   |                                            | 236,945     |                                         |   | 630,047 |   |
| Accrued                  Liabilities                              |   |                                            | 79,375      |                                         |   | 85,046 |   |
| Total                  Current Liabilities                        |   |                                            | 494,026     |                                         |   | 985,571 |   |
|                                                              |   |                                            |        |                                         |   |   |   |
| **Long-term                  Liabilities**                        |   |                                            |        |                                         |   |   |   |
| Notes                  Payable                                    |   | $                                               | 547,568     |                                         | $      | - |   |
|                                                              |   |                                            |        |                                         |   |   |   |
|                                                              |   |                                            |        |                                         |   |   |   |
| **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, 25,918,687 shares issued      |   |                                            | 25,919      |                                         |   | 25,697 |   |
| Additional                  Paid in Capital                       |   |                                            | 12,923,953  |                                         |   | 11,490,200 |   |
| Accumulated                  Deficit                              |   |                                            | (10,407,556 | )                                            |   | (8,305,606 | ) |
| Treasury                  Stock - 10,000 shares                   |   |                                            | (25,000     | )                                            |   | (25,000 | ) |
| Total                  Stockholders' Equity                       |   |                                            | 2,517,316   |                                         |   | 3,185,291 |   |
|                                                              |   |                                            |        |                                         |   |   |   |
| **Total                  Liabilities and Stockholders' Equity**   |   | $                                               | 3,558,910   |                                         | $      | 4,170,862 |   |

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

----

| **SUMMIT                    ENVIRONMENTAL CORPORATION, INC.** |
|---------------------------------------------------------------|
| **STATEMENTS                    OF OPERATIONS**               |
| **(Unaudited)**                                               |

|                                                             |   |  **Three                    Months                    Ended** |
|------------------------------------------------------------------|--------|--------------------------------------------------------------------|
|                                                             |   |  **September                    30,**                         |
|                                                             |   |                                                               | **2006** |   |   | **2005** |   |
|                                                             |   |                                                               |   |   |   |   |   |
| **Sales**                                                        |   | $                                                                  | 75,384 |   | $ | 695,244 |   |
|                                                             |   |                                                               |   |   |   |   |   |
| **Returns                    and Allowances**                    |   |                                                               | (234 | ) |   | (1,549 | ) |
|                                                             |   |                                                               |   |   |   |   |   |
| **Net                    Sales**                                 |   |                                                               | 75,150 |   |   | 693,695 |   |
|                                                             |   |                                                               |   |   |   |   |   |
| **Cost                    of Sales**                             |   |                                                               |   |   |   |   |   |
| Cost                    of sales                                 |   |                                                               | 36,504 |   |   | 325,377 |   |
|                                                             |   |                                                               |   |   |   |   |   |
| **Gross                    Profit**                              |   |                                                               | 38,646 |   |   | 368,318 |   |
|                                                             |   |                                                               |   |   |   |   |   |
| **Operating                    Expenses**                        |   |                                                               |   |   |   |   |   |
| Selling,                    general, and administrative expenses |   |                                                               | 622,966 |   |   | 351,317 |   |
| Amortization                                                     |   |                                                               | 45,012 |   |   | 42,512 |   |
| Depreciation                                                     |   |                                                               | 3,614 |   |   | 3,031 |   |
| Total                    operating expense                       |   |                                                               | 671,592 |   |   | 396,860 |   |
|                                                             |   |                                                               |   |   |   |   |   |
| **Net                    Earnings (Loss) from Operations**       |   |                                                               | (632,946 | ) |   | (28,542 | ) |
|                                                             |   |                                                               |   |   |   |   |   |
| **Other                    Income (Expense)**                    |   |                                                               |   |   |   |   |   |
| Interest                    income                               |   |                                                               | 671 |   |   | 826 |   |
| Interest                    expense                              |   |                                                               | (36,491 | ) |   | (3,839 | ) |
| Royalty                    income                                |   |                                                               | 2,206 |   |   |   |   |
| Miscellaneous                                                    |   |                                                               | (13,581 | ) |   | (10,041 | ) |
| Total                    other income (expense)                  |   |                                                               | (47,195 | ) |   | (13,054 | ) |
|                                                             |   |                                                               |   |   |   |   |   |
| **Net                    Loss**                                  |   | $                                                                  | (680,141 | ) | $ | (41,596 | ) |
|                                                             |   |                                                               |   |   |   |   |   |
|                                                             |   |                                                               |   |   |   |   |   |
|                                                             |   |                                                               |   |   |   |   |   |
| **Net                    Earnings (Loss) per Share**             |   | $                                                                  | (0.03 | ) | $ | (0.00 | ) |
|                                                             |   |                                                               |   |   |   |   |   |
| **Weighted                    Average Shares**                   |   |                                                               | 25,895,389 |   |   | 24,109,395 |   |

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

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| **SUMMIT                      ENVIRONMENTAL CORPORATION, INC.** |
|-----------------------------------------------------------------|
| **STATEMENTS                      OF OPERATIONS**               |
| **(Unaudited)**                                                 |

|                                                               |   | **Nine                      Months Ended** |       |
|--------------------------------------------------------------------|--------|--------------------------------------------|------------|
|                                                               |   | **September                      30,**     |       |
|                                                               |   | **2006**                                   |       | **2005** |   |
|                                                               |   |                                       |       |   |   |
| **Sales**                                                          |   | $                                          | 402,997    |   | $ | 1,050,600 |   |
|                                                               |   |                                       |       |   |   |   |   |
| **Returns                      and Allowances**                    |   |                                       | (234       | ) |   | (1,855 | ) |
|                                                               |   |                                       |       |   |   |   |   |
| **Net                      Sales**                                 |   |                                       | 402,763    |   |   | 1,048,745 |   |
|                                                               |   |                                       |       |   |   |   |   |
| **Cost                      of Sales**                             |   |                                       |       |   |   |   |   |
| Cost                      of sales                                 |   |                                       | 195,688    |   |   | 522,122 |   |
|                                                               |   |                                       |       |   |   |   |   |
| **Gross                      Profit**                              |   |                                       | 207,075    |   |   | 526,623 |   |
|                                                               |   |                                       |       |   |   |   |   |
| **Operating                      Expenses**                        |   |                                       |       |   |   |   |   |
| Selling,                      general, and administrative expenses |   |                                       | 2,009,686  |   |   | 895,169 |   |
| Amortization                                                       |   |                                       | 135,036    |   |   | 125,599 |   |
| Depreciation                                                       |   |                                       | 10,841     |   |   | 8,775 |   |
| Total                      operating expense                       |   |                                       | 2,155,563  |   |   | 1,029,543 |   |
|                                                               |   |                                       |       |   |   |   |   |
| **Net                      Earnings (Loss) from Operations**       |   |                                       | (1,948,488 | ) |   | (502,920 | ) |
|                                                               |   |                                       |       |   |   |   |   |
| **Other                      Income (Expense)**                    |   |                                       |       |   |   |   |   |
| Interest                      income                               |   |                                       | 5,205      |   |   | 2,946 |   |
| Interest                      expense                              |   |                                       | (100,078   | ) |   | (7,281 | ) |
| Royalty                      income                                |   |                                       | 3,681      |   |   |   |   |
| Miscellaneous                                                      |   |                                       | (62,272    | ) |   | (13,565 | ) |
| Total                      other income (expense)                  |   |                                       | (153,464   | ) |   | (17,900 | ) |
|                                                               |   |                                       |       |   |   |   |   |
| **Net                      Loss**                                  |   | $                                          | (2,101,952 | ) | $ | (520,820 | ) |
|                                                               |   |                                       |       |   |   |   |   |
|                                                               |   |                                       |       |   |   |   |   |
|                                                               |   |                                       |       |   |   |   |   |
| **Net                      Earnings (Loss) per Share**             |   | $                                          | (0.08      | ) | $ | (0.02 | ) |
|                                                               |   |                                       |       |   |   |   |   |
| **Weighted                      Average Shares**                   |   |                                       | 25,798,316 |   |   | 23,574,094 |   |

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

----

| **SUMMIT                        ENVIRONMENTAL CORPORATION, INC.** |
|-------------------------------------------------------------------|
| **STATEMENTS                        OF CASH FLOWS**               |

|                                                                        |   | **Nine                        Months Ended** |       |
|-----------------------------------------------------------------------------|--------|----------------------------------------------|------------|
|                                                                        |   | **September                        30,**     |       |
|                                                                        |   | **2006**                                     |       | **2005** |   |
|                                                                        |   |                                         |       |   |   |
| **Cash                        Flows from Operating Activities**             |   |                                         |       |   |   |   |   |
| Net                        loss                                             |   | $                                            | (2,101,952 | ) | $ | (520,820 | ) |
| Adjustments                        to reconcile net earnings (loss) to cash |   |                                         |       |   |   |   |   |
| used                        in operating activities                         |   |                                         |       |   |   |   |   |
| Amortization                                                                |   |                                         | 135,036    |   |   | 125,599 |   |
| Depreciation                                                                |   |                                         | 10,841     |   |   | 8,775 |   |
| Common                        stock and options issued for services         |   |                                         | 690,534    |   |   | 2,460 |   |
| Change                        in assets and liabilities                     |   |                                         |       |   |   |   |   |
| Accounts                        receivable                                  |   |                                         | 152,405    |   |   | (206,580 | ) |
| Inventory                                                                   |   |                                         | 87,437     |   |   | (343,428 | ) |
| Prepaid                        expenses and deposits                        |   |                                         | 9,759      |   |   | 29,119 |   |
| Accounts                        payable                                     |   |                                         | (92,772    | ) |   | 235,357 |   |
| Accrued                        liabilities                                  |   |                                         | (5,671     | ) |   | 9,586 |   |
| Net                        cash used in operating activities                |   |                                         | (1,114,383 | ) |   | (659,932 | ) |
|                                                                        |   |                                         |       |   |   |   |   |
| **Cash                        Flows from Investing Activities**             |   |                                         |       |   |   |   |   |
| Acquisition                        of property and equipment                |   |                                         | (9,100     | ) |   | (5,682 | ) |
| Net                        cash used in investing activities                |   |                                         | (9,100     | ) |   | (5,682 | ) |
|                                                                        |   |                                         |       |   |   |   |   |
| **Cash                        Flows from Financing Activities**             |   |                                         |       |   |   |   |   |
| Loan                        proceeds                                        |   |                                         | 560,000    |   |   | 210,500 |   |
| Loan                        principal repayments                            |   |                                         | (405,534   | ) |   | (9,600 | ) |
| Proceeds                        from sale of stock                          |   |                                         | 743,441    |   |   | 555,826 |   |
| Net                        cash provided by financing activities            |   |                                         | 897,907    |   |   | 756,726 |   |
|                                                                        |   |                                         |       |   |   |   |   |
| **Net                        Increase (Decrease) in Cash**                  |   |                                         | (225,576   | ) |   | 91,112 |   |
|                                                                        |   |                                         |       |   |   |   |   |
| Cash                        - Beginning of Period                           |   |                                         | 316,798    |   |   | 460,257 |   |
|                                                                        |   |                                         |       |   |   |   |   |
| Cash                        - End of Period                                 |   | $                                            | 91,222     |   | $ | 551,369 |   |

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

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| 1. | SIGNIFICANT                          ACCOUNTING POLICIES |
|----|----------------------------------------------------------|

|   | 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 |
|--------|--------------------------|

*                    "Revenue Recognition"*
*                    "Revenue Recognition in Financial Statements",*

----

|   | Cash                          and cash equivalents |
|--------|----------------------------------------------------|

|   | 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 write-offs, level of past                          due accounts and                          relationships with and economic status of the                          customers. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As                          of December 31, 2005, the Company has financed, with recourse,                          certain                          accounts receivable. The related credit facilities are                          subject to recourse                          in that the Company is obligated to pay amounts due to                          the participating                          financial institution in the event the customer fails to                          pay. The                          outstanding balance on such receivables at September 30,                          2006, was                          $47,381. Fees associated with these transactions are recorded                          as interest                          expense in the statement of operations. The agreement allows                          the Company                          to finance an aggregate amount of $1,000,000. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 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. The Company has adopted the provisions of Statement                          of Financial                          Accounting Standards (SFAS) No. 142,*Goodwill and Other Intangible Assets,*effective                          for periods beginning January 1, 2002, and thereafter.                          SFAS 142 addresses                          financial accounting and reporting for acquired goodwill                          and other                          intangible assets and supersedes APB Opinion No. 17, *Intangible                          Assets*.                          Specifically, the statement addresses how intangible assets                          that are                          acquired should be accounted for in financial statements                          upon their                          acquisition, as well as how goodwill and other intangible                          assets should be                          accounted for after they have been initially recognized                          in the financial                          statements. The statement requires intangible assets to                          be reviewed for                          impairment whenever events or changes in circumstances                          indicate that their                          carrying amounts may not be recoverable and that a loss                          shall be                          recognized if the carrying amount of an intangible exceeds                          its fair                          value. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Income Taxes |
|--------|-------------------|

|   | The                          Company provides for income taxes under the asset and liability                          method.                          Under the asset and liability method, deferred tax assets                          and liabilities                          are recognized for the future tax consequences attributable                          to differences                          between the financial statement carrying amounts of existing                          assets and                          liabilities and their respective tax bases. Deferred tax                          assets and                          liabilities are measured using enacted tax rates expected                          to apply to                          taxable income in the years in which those temporary differences                          are                          expected to be recorded or settled. The effect on deferred                          tax assets and                          liabilities of a change in tax rates is recognized in income                          in the period                          that includes the enactment date. Valuation allowances                          are recognized to                          limit recognition of deferred tax assets where appropriate.                          Such                          allowances may be reversed when circumstances provide evidence                          that the                          deferred tax assets will more likely than not be                          realized. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Property                          and Equipment |
|--------|-------------------------------------------------|

|   | 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. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Description                                            |   |   | Estimated                        Service Life |   |
|-------------------------------------------------------------|--------|--------|-----------------------------------------------|--------|
|                                                        |   |   |                                          |   |
| Office                        furniture and equipment  |   |   | 5-7                        years              |   |
| Building                        and improvements       |   |   | 39                        years               |   |

|   |   | Advertising                          and marketing costs are expensed as incurred, which totaled                          $124,905,                          $284,409, $54,776 and $97,311 for the three and nine months                          ended                          September 30, 2006 and 2005, respectively. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | Shipping                          and handling costs |
|--------|--------|------------------------------------------------------|

|   |   | The                          Company includes shipping and handling costs in “Selling, general and                          administrative expenses” for purposes of income statement presentation.                          Shipping and handling costs were approximately $6,095,                          $25,789, $16,683                          and $30,103 for the three and nine months ended September                          30, 2006 and                          2005, respectively. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | Research                          and development costs |
|--------|--------|---------------------------------------------------------|

|   |   | The                          costs associated with research and development activities                          are expensed as                          incurred. Total research and development costs were approximately                          $5,229,                          $34,253, $816 and $28,927, for the three and nine months                          ended September                          30, 2006 and 2005, respectively. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Earnings                per Share*

*Share-Based                Payment*
*Accounting                for Stock-Based Compensation*

----

| 2. | PATENT |
|----|--------|

| 3. | LICENSES |
|----|----------|

----

| 4. | NOTES                          PAYABLE |
|----|----------------------------------------|

| Note                          payable to Paul and Gloria Burke, due in monthly installments                          of $6,561, including interest at 13%. The amortization                          period is 20 years and the maturity date is August                          2011. Secured by the building and the guaranty of                          one of its officers.                                                                                                               |   | $      | 556,232 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |    |   |
| Note                          payable, Austin Bank, interest is payable monthly at 9.25%,                          with a balloon payment due September 2007. Secured by a                          $50,000 certificate of deposit at Austin Bank and the personal                          guaranty of a stockholder.                                                                                                                                                                              |   |   | 180,900 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |    |   |
| Note                          payable, Pacific Business Capital Corporation, due on                          demand. Interest is computed based on the accounts receivable                          purchase discount rate of 1.5% plus an additional .1%                          per day for past-due accounts. Secured by the Company’s accounts                          receivable, inventory, property and equipment and the guaranty                          of one of its officers.  |   |   | 47,381  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 784,513 |   |
| Less                        current maturities                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 236,945 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |    |   |
| Non-current                        maturities                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $      | 547,568 |   |

| 5. | LEASES |
|----|--------|

|   |   | The                          company is obligated under various operating leases for                          equipment,                          vehicles, and office and warehouse space. Rent expense                          for all operating                          leases was $5,428, $18,928, $20,439 and $48,591 for the                          three and nine                          months ended September 30, 2006 and 2005,                          respectively. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6. | COMMON                          STOCK |
|----|---------------------------------------|

|   | During                          the first quarter of 2006, 1,006,669 subscriptions to shares                          of common                          stock were sold in a private placement. During the second                          quarter of 2006,                          60,000 subscriptions to shares of common stock were sold                          in a private                          placement. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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 “2004 Plan”). The number of shares subject to the 2004 Plan is                          1,000,000. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | At                          September 30, 2006, there were 385,000 options to purchase                          shares of                          common stock outstanding pursuant to the Plan and 1,220,000                          options to                          purchase shares of common stock outstanding pursuant to                          the 2004                          Plan. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | 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. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 8. | CONCENTRATIONS |
|----|----------------|

|   | Approximately                          78% percent of the sales during the nine months ended September                          30, 2006                          were made to four customers and 89% percent of the sales                          during the nine                          months ended September 30, 2005 were made to four                          customers. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | COMMITMENTS                          AND CONTENGENCIES |
|----|--------------------------------------------------------|

|   | The                          Company has a commitment to BioGenesis Enterprises, Inc.                          for the                          acquisition of certain proprietary remediation technology                          licenses in                          exchange for 500,000 shares of the Company’s common stock and 500,000                          stock purchase options. The transaction has not been completed                          at                          September 30, 2006. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | SUBSEQUENT                            EVENTS |
|-----|----------------------------------------------|

|   | Our                            new management has commenced a review of the facts surrounding                            the legal                            propriety of the royalty payments that have been paid                            over the years to                            Moonlighting Distribution Corporation and its shareholders.                            Moonlighting                            is a corporation under the control of the former CEO                            through majority                            ownership of it and has been affiliated with our company                            through common                            officers and directors. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On                            December 13, 2006 the board of directors approved a stock                            and salary                            compensation plan for certain officers and directors.                            The plan calls for                            6,000,000 shares of common stock to be issued to the                            CEO and CFO upon                            approval of the plan; the number of shares to be issued                            is 4,000,000 and                            2,000,000, respectively. As of December 21, 2006 these                            shares have not                            been issued. In addition, the plan specifies certain                            shares to be issued                            and cash compensation to be paid contingent upon certain                            future targets                            being reached. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**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 nine-month      period ended September 30, 2006 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 2006 Compared to Third Quarter of      2005**

**Results      of Operations - First Three Quarters of 2006 Compared to First Three Quarters      of      2005**

----

**OVERVIEW      - RECENT DEVELOPMENTS**

----

**Off-Balance      Sheet Arrangements**

|  | · | an                obligation under a guarantee contract, |
|--|--------|----------------------------------------------------------|
|   |   |   |
|--------|--------|--------|

|   | · | 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, |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|

|   | · | an                obligation, including a contingent obligation, under a contract that                would                be accounted for as a derivative instrument,                or |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|

|   | · | an                obligation, including a contingent obligation, arising out of a variable                interest in an unconsolidated entity that is held by, 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. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Contractual      obligations**

|                                                                                                | **Payments                Due-by Period** |
|-----------------------------------------------------------------------------------------------------|-------------------------------------------|
| **Contractual****Obligations**                                                                      |  **Total**                           | **Less                Than****1                Year** |  **1-3                Years** |  **3-5                Years** | **More                Than****5                Years** |
| Long-Term                Debt Obligations                                                           |  $630,047                            |  $630,047 |   |   |   |
| Capital                Lease Obligations                                                            |  $                0                  |   |   |   |   |
| Operating                Lease Obligations                                                          |  $                0                  |   |   |   |   |
| Other                Long-Term Liabilities Reflected on Our Balance Sheet under                GAAP |  $                0                  |   |   |   |   |
|                                                                                                |                                      |   |   |   |   |
| Total                                                                                               | $630,047                                  | $630,047 |   |   |   |

*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 Doug Cox, and chief financial officer      Don      Jordan ,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**

----

**PART      II - OTHER INFORMATION**

**Item          1.    Legal          Proceedings**

**Item      2.    Unregistered Sales of      Equity Securities**

----

|           |   |   |                           |   |   | **No.                of** |   |   | **Price**                    |   |   | **Type                of**                       |   |
|----------------|--------|--------|--------------------------------|--------|--------|---------------------------|--------|--------|------------------------------|--------|--------|--------------------------------------------------|--------|
| **Date**  |   |   | **Person**                     |   |   | **Shares**                |   |   | **Per                Share** |   |   | **Consideration**                                |   |
|           |   |   |                           |   |   |                      |   |   |                         |   |   |                                             |   |
| 10-19-06       |   |   | Keith                Parker    |   |   | 22,500                    |   | $      | 0.43                         |   |   | Services                as an officer of Summit  |   |
| 10-19-06       |   |   | Paula                Parker    |   |   | 15,000                    |   | $      | 0.43                         |   |   | Services                as an officer of Summit  |   |
| 10-19-06       |   |   | Chris                Dellinges |   |   | 30,000                    |   | $      | 0.43                         |   |   | Services                as an officer of Summit  |   |
| 10-19-06       |   |   | Paul                Kowalenko  |   |   | 15,314                    |   | $      | 0.43                         |   |   | Services                as director of marketing |   |
| 10-19-06       |   |   | Gordon                Lewis    |   |   | 12,000                    |   | $      | 0.43                         |   |   | Services                as director of marketing |   |
| 10-19-06       |   |   | Mohsen                Amiran   |   |   | 22,500                    |   | $      | 0.43                         |   |   | Research                and development services |   |

**Item      6.    Exhibits**

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

| 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.* |
|-----|--------|---|---------------------------------------------------------------------------------|

| 5 |   | - | Opinion                of Thomas J. Kenan, Esquire, on the legality of the securities being                registered.+++ |
|---|--------|---|---------------------------------------------------------------------------------------------------------------------------|

| 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****Ô**,                Super Cold Fire, and **Flame                Out®**)* |
|------|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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.+ |
|------|--------|---|---------------------------------------------------------------------------------------------------------|

| 10.9 |   | - | Royalty                Agreement between BioGenesis Enterprises, Inc. and Summit Environmental                Corporation, Inc.+* |
|------|--------|---|-----------------------------------------------------------------------------------------------------------------------------------|

| 10.10 |   | -  | Amendment                Six to Letter of Intent between BioGenesis Enterprises, Inc. and                Summit                Environmental Corporation, Inc. dated July 29,                1999.+* |
|-------|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.11 |   | -  | Letter                dated December 1, 1999 from Thomas J. Kenan to BioGenesis outlining                terms                of acceptance and executed by BioGenesis Enterprises,                Inc.+* |
|-------|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.12 |   | - | License                Agreement - Consumer Chemicals and Proprietary Remediation Technology,                executed 02-01-06 by BioGenesis Enterprises, Inc. and Summit Environmental                Corporation, Inc.+++ |
|-------|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.13 |   | - | Service                Agreement by and between SMG and Summit Environmental Corporation                dated                September 25, 2005.**+ |
|-------|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.14 |   | - | Marketing,                Distribution, and Sales Agreement between Summit Environmental Corporation                and Global Trade Marketing Inc. dated August 5,                2003.**+ |
|-------|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.15 |   | - | Advisory                Services Agreement between AmBiz Associates, L.L.C. and Summit                Environmental Corporation, Inc. dated February 25,                2004.**+ |
|-------|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.16 |   | - | Distribution,                and Sales Agreement between Summit Environmental Corporation and                VASA,                Ltd. dated September 1, 2004.**+ |
|-------|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.17 |   | - | Marketing                and Technology License Agreement executed March 3, 2006 by Summit                Environmental Corporation, Inc. and Asah Terra Nigeria Joint Venture                #1,                Inc. Summit’s agreement with A & H Enterprises, Inc. is similar in                virtually all respects to the agreement with Asah Terra Nigeria Joint                venture #1 Agreement.++* |
|-------|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14 |   | - | Code                of Ethics for the Chief Executive officer and Senior Financial                Officers.*+ |
|----|--------|---|---------------------------------------------------------------------------------------------------------------|

| 16.1 |   | - | Letter                of November 24, 2004 of Lane Gorman Trubitt, L.L.P. agreeing with                the                statements made in Form 8-K by Summit Environmental Corporation,                Inc.,                concerning Summit’s change of principal independent                accountants.++ |
|------|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 23 |   | - | Consent                of Lane Gorman Trubitt, L.L.P. to be named as an expert in the                Registrant's Form 10-KSB for the fiscal year ended December 31, 2003,                which is incorporated herein. (Superseded by Exhibit                23.2.) |
|----|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.1 |   | - | Consent                of Thomas J. Kenan, Esquire, to the reference to him as an attorney                who                has passed upon certain information contained in the Registration                Statement. (Superseded                by Exhibit 23.3.) |
|------|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.2 |   | - | Consent                of Lane Gorman Trubitt, L.L.P. to be named as an expert in the                Registrant's Form 10-KSB for the fiscal year ended December 31, 2003,                which is incorporated herein. |
|------|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.3 |   | - | Consent                of Thomas J. Kenan, Esquire, to the reference to him as an attorney                who                has passed upon certain information contained in the Registration                Statement.  |
|------|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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-KSB Annual Report FYE 12-31-03, Commission File                No.                333-48675 incorporated herein. |
|--------|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |   |
|--------|--------|--------|--------|

|   |   | ++ | Previously                filed with Form 8-K November 22, 2004; Commission File No. 333-48659                incorporated herein. |
|--------|--------|----|------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |   |
|--------|--------|--------|--------|

|   |   | +++ | Being                filed with Form SB-2 Am 1, Commission File No. 333-122402 incorporated                herein. |
|--------|--------|-----|--------------------------------------------------------------------------------------------------------------------|
|   |   |   |   |
|--------|--------|--------|--------|

|   |   | +* | Previously                filed with Amendment No. 2 to Form 10-KSB 12-31-04, Commission File                No.                333-48675 incorporated herein. |
|--------|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |   |
|--------|--------|--------|--------|

|   |   | *+ | Previously                filed with Form 10-KSB Annual Report FYE 12-31-04, Commission File                No.                333-48675 incorporated herein. |
|--------|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |   |
|--------|--------|--------|--------|

|   |   | **+ | Being                filed with Form SB-2 Am 2, Commission File No. 333-122402 incorporated                herein. |
|--------|--------|-----|--------------------------------------------------------------------------------------------------------------------|
|   |   |   |   |
|--------|--------|--------|--------|

|   |   | ++* | Filed                with Form 8-K March 3, 2006, Commission file No. 333-48659 incorporated                herein. |
|--------|--------|-----|---------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

| Date: December              21, 2006  |                                                |                                     |
|-------------------------------------------------|-----------------------------------------------------|------------------------------------------|
|                                            | Summit              Environmental Corporation, Inc. |
|                                       |                                           |                                |
|                                            | By:                                       | */s/              Doug              Cox* |
|                                            | Doug Cox, Chief Executive              Officer      |

----