<PAGE>   1


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

                                   FORM 10-QSB
              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                  For the quarterly period ended June 30, 2001

                                       OR

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


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


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


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

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

As of June 30, 2001, there were 12,751,894 shares of the Registrant's Common
Stock, par value $0.001 per share, outstanding.

Transitional Small Business Disclosure Format (check one):  Yes ___  No _X_




<PAGE>   2


                         PART I - FINANCIAL INFORMATION



ITEM 1.           FINANCIAL STATEMENTS


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




<Table>
<Caption>
                                                          June 30, 2001 (Unaudited)       December 31, 2000
                                                          -------------------------    -------------------------
<S>                                                       <C>                          <C>
                    ASSETS
CURRENT ASSETS
  Cash and Cash Equivalents                                               $ 300,080    $                 428,478
  Accounts Receivable, Less Allowance of $44,000                             95,765                       52,961
  Note receivable - related party                                            20,496                       36,231
  Inventory                                                                 761,648                      795,857
  Prepaid Expenses                                                            1,598                        3,858
                                                          -------------------------    -------------------------
    Total Current Assets                                                  1,179,587                    1,317,385
                                                          -------------------------    -------------------------

PROPERTY AND EQUIPMENT AT COST
  Property and Equipment                                                    108,017                      104,865
  Accumulated Depreciation and Amortization                                 (25,446)                     (15,042)
                                                          -------------------------    -------------------------
    Net Property and Equipment                                               82,571                       89,823
                                                          -------------------------    -------------------------

OTHER ASSETS
  Prepaid Royalties                                                         514,000                      514,000
  Patents and Licenses                                                    2,435,000                    2,435,000
  Less:  Accumulated Amortization                                          (429,640)                    (348,466)
                                                          -------------------------    -------------------------
    Total Other Assets                                                    2,519,360                    2,600,534
                                                          -------------------------    -------------------------

TOTAL ASSETS                                              $               3,781,518    $               4,007,742
                                                          =========================    =========================

          LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
  Accounts Payable                                        $                  27,876    $                  59,186
  Accrued Payroll                                                            18,497                       23,428
  Notes Payable - Current Portion                                             3,648                        3,128
                                                          -------------------------    -------------------------
    Total Current Liabilities                                                50,021                       85,742
                                                          -------------------------    -------------------------

LONG-TERM LIABILITIES
  Notes Payable - Less Current Portion                                       43,286                       45,611
                                                          -------------------------    -------------------------

STOCKHOLDERS' EQUITY
  Preferred stock, par value $.001; 10,000,000
    shares authorized, no shares issued                                          --                           --
  Common stock, par value $.001; 40,000,000
    shares authorized, 12,751,894 & 12,092,994
    shares issued and outstanding respectively                               12,753                       12,094
  Additional Paid in Capital                                              6,904,591                    6,637,135
  Deficit Accumulated in Development Stage                               (3,229,133)                  (2,772,840)
                                                          -------------------------    -------------------------
    Total Stockholders' Equity                                            3,688,211                    3,876,389
                                                          -------------------------    -------------------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                $               3,781,518    $               4,007,742
                                                          =========================    =========================
</Table>




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



                                       2
<PAGE>   3
                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                          (A Development Stage Company)
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

<Table>
<Caption>
                                                            THREE MONTHS ENDED
                                                                  JUNE 30                  PERIOD FROM
                                                      ------------------------------     AUGUST 31, 1997 TO
                                                           2001               2000        JUNE 30, 2001
                                                      ------------      ------------     ------------------
<S>                                                   <C>               <C>             <C>
SALES                                                 $     19,411      $     21,753      $    519,698

COST OF SALES                                                8,480             6,562           183,750
                                                      ------------      ------------      ------------

GROSS PROFIT                                                10,931            15,191           335,948
                                                      ------------      ------------      ------------

OPERATION EXPENSES
  Advertising                                                3,000             4,234            22,580
  Amortization                                              40,587            40,587           439,337
  Audit Fees                                                 3,815             5,260            86,445
  Automobile expense                                         3,533             6,087            84,258
  Bad debt expense                                              --                --            48,435
  Commissions                                                  163             3,677            32,166
  Consulting fees                                            4,523                --            46,525
  Contract services                                          2,769               234             9,971
  Contributions                                                229             1,100             4,476
  Depreciation                                               5,280             5,437            39,986
  Dues and subscriptions                                     1,798               950            12,227
  Insurance                                                  6,838             9,040            85,413
  Licenses and permits                                          --                --            28,194
  Marketing                                                  5,505            28,787           636,572
  Miscellaneous                                                555               484            38,610
  Office expenses                                            6,235             7,440            82,971
  Officer compensation                                      37,500            48,332           540,948
  Payroll taxes                                              5,476            10,372            73,014
  Postage and delivery                                       3,813             5,903            77,822
  Press releases                                               550             4,744            36,622
  Printing and reproduction                                  1,256             1,308            12,199
  Professional fees                                            555                96            35,886
  Rent                                                      12,812            10,899           153,908
  Repairs                                                    2,049             9,248            42,625
  Research and development                                  16,329            10,981            52,456
  Royalties                                                     --                --             9,746
  Salaries - Office                                         31,465            26,032           325,675
  SEC Expense                                                3,672            16,182            78,180
  Set Up Costs                                                 971                --            17,158
  Start Up Costs                                                --                --             9,491
  Taxes                                                         --                --             7,418
  Telephone and utilities                                    8,894             8,959           107,153
  Travel and entertainment                                   9,844            25,836           199,188
  Warranty expense                                              --                --            18,409
                                                      ------------      ------------      ------------
    Total operating expense                                220,016           292,209         3,496,064
                                                      ------------      ------------      ------------

NET EARNINGS (LOSS) FROM OPERATIONS                       (209,085)         (277,018)       (3,160,116)

OTHER INCOME
  Interest income                                            3,181            12,729            53,082
  Interest expense                                          (1,222)           (2,043)          (12,999)
  Gain/Loss on Sale of Asset                                    --            (5,871)           (8,477)
  Miscellaneous                                             10,227               700            18,971
                                                      ------------      ------------      ------------
    Total other income (expense)                            12,186             5,515            50,577
                                                      ------------      ------------      ------------

NET LOSS BEFORE CUMULATIVE EFFECT OF THE
CHANGE IN ACCOUNTING PRINCIPLE                            (196,899)         (271,503)       (3,109,539)
                                                      ------------      ------------      ------------
Cumulative effect on prior years of the change
in accounting principle, net of tax                             --                --          (119,594)
                                                      ------------      ------------      ------------

NET LOSS                                              $   (196,899)     $   (271,503)     $ (3,229,133)
                                                      ============      ============      ============
NET LOSS PER SHARE BEFORE CUMULATIVE
EFFECT OF THE CHANGE IN ACCOUNTING PRINCIPLE          $      (0.02)     $      (0.02)     $      (0.38)
                                                      ------------      ------------      ------------
Cumulative effect on prior years of the change in
accounting principle                                            --                --             (0.02)

NET EARNINGS (LOSS) PER SHARE                         $      (0.02)     $      (0.02)     $      (0.40)
                                                      ============      ============      ============

WEIGHTED AVERAGE SHARES                                 12,363,910        12,019,901         8,219,023
</Table>


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


                                       3

<PAGE>   4


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



<Table>
<Caption>
                                                           SIX MONTHS ENDED
                                                                JUNE 30
                                                      ------------------------------
                                                          2001             2000
                                                      ------------      ------------
<S>                                                   <C>               <C>
SALES                                                 $     62,393      $     38,556

COST OF SALES                                               43,550            14,955
                                                      ------------      ------------

GROSS PROFIT                                                18,843            23,601
                                                      ------------      ------------

OPERATION EXPENSES
  Advertising                                                6,023             4,345
  Amortization                                              81,174            81,174
  Audit Fees                                                20,380            25,320
  Automobile expense                                         5,449            14,832
  Bad debt expense                                              --             2,516
  Commissions                                                  163             9,986
  Consulting fees                                            9,031                --
  Contract services                                          3,354               234
  Contributions                                                711             1,300
  Depreciation                                              10,404             9,631
  Dues and subscriptions                                     3,407             1,375
  Insurance                                                 16,108            15,778
  Licenses and permits                                          --               651
  Marketing                                                 25,618            92,541
  Miscellaneous                                             11,452             3,909
  Office expenses                                           13,534            18,827
  Officer compensation                                      83,758            95,247
  Payroll taxes                                             12,778            14,270
  Postage and delivery                                       9,361            19,589
  Press releases                                             1,930            15,672
  Printing and reproduction                                  3,675             1,308
  Professional fees                                          2,748             3,065
  Rent                                                      26,489            21,699
  Repairs                                                    7,244            11,578
  Research and development                                  29,377            11,023
  Royalties                                                     22                --
  Salaries - Office                                         57,301            50,371
  SEC Expense                                                3,972            19,164
  Set Up Costs                                               8,910
  Start Up Costs                                                --
  Taxes                                                         --                --
  Telephone and utilities                                   17,022            18,389
  Travel and entertainment                                  20,571            44,216
  Warranty expense                                              --               518
                                                      ------------      ------------
    Total operating expense                                491,966           608,528
                                                      ------------      ------------

NET EARNINGS (LOSS) FROM OPERATIONS                       (473,123)         (584,927)

OTHER INCOME
  Interest income                                            8,753            15,326
  Interest expense                                          (2,150)           (3,672)
  Gain/Loss on Sale of Asset                                    --            (8,112)
  Miscellaneous                                             10,227               700
                                                      ------------      ------------
    Total other income (expense)                            16,830             4,242
                                                      ------------      ------------

NET LOSS BEFORE CUMULATIVE EFFECT OF THE
CHANGE IN ACCOUNTING PRINCIPLE                            (456,293)         (580,685)
                                                      ------------      ------------

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

NET LOSS                                              $   (456,293)     $   (580,685)
                                                      ============      ============

NET LOSS PER SHARE BEFORE CUMULATIVE
EFFECT OF THE CHANGE IN ACCOUNTING PRINCIPLE

Cumulative effect on prior years of the change in
accounting principle

NET EARNINGS (LOSS) PER SHARE                         $      (0.04)     $      (0.05)
                                                      ------------      ------------

WEIGHTED AVERAGE SHARES                                 12,265,112        11,422,857
</Table>


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


                                       4
<PAGE>   5




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



<Table>
<Caption>
                                                                  SIX MONTHS ENDED
                                                                       JUNE 30                   PERIOD FROM
                                                          ----------------------------------  AUGUST 31, 1997 TO
                                                               2001               2000           JUNE 30, 2001
                                                          ---------------    ---------------  ------------------
<S>                                                       <C>                <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net loss                                                $      (456,293)   $      (580,685)   $    (3,229,133)
  Adjustments to reconcile net earnings (loss) to cash
  used in operating activities
    Amortization                                                   81,174             81,174            439,337
    Bad debt expense                                                   --                 --             48,435
    Cumulative effect of change in accounting principle                --                 --            119,594
    Depreciation                                                   10,404              9,631             39,986
    Loss on sale of equipment                                          --              8,112              8,477
    Common stock issued for services                                   --                 --             67,494
    Change in assets and liabilities
      Accounts receivable                                         (42,804)            16,410           (180,431)
      Note receivable                                              15,735                 --             15,735
      Inventory                                                    34,209            (67,420)          (761,648)
      Prepaid insurance                                             2,260            (19,448)            (1,598)
      Prepaid royalties                                                --                 --           (514,000)
      Accounts payable                                            (31,310)            36,304             27,876
      Accrued liabilities                                          (4,931)             9,380             18,497
                                                          ---------------    ---------------    ---------------
        Net cash used in operating activities                    (391,556)          (506,542)        (3,901,379)
                                                          ---------------    ---------------    ---------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Acquisition of property and equipment                            (3,152)           (43,399)           (70,598)
  Organization costs                                                   --                 --           (129,291)
  Acquisition of licenses                                              --                 --            (60,000)
                                                          ---------------    ---------------    ---------------
        Net cash used in investing activities                      (3,152)           (43,399)          (259,889)
                                                          ---------------    ---------------    ---------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Loan proceeds                                                        --                 --              6,554
  Loan principal repayments                                        (1,805)            (1,502)           (20,056)
  Loan principal repayments - related party                            --                 --           (150,000)
  Proceeds from sale of stock                                     268,115            822,500          4,624,850
                                                          ---------------    ---------------    ---------------
        Net cash provided by financing activities                 266,310            820,998          4,461,348
                                                          ---------------    ---------------    ---------------

NET INCREASE (DECREASE) IN CASH                                  (128,398)           271,057            300,080
                                                          ---------------    ---------------    ---------------

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

Cash - End of Period                                      $       300,080    $       856,914    $       301,630
                                                          ===============    ===============    ===============
</Table>




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




                                       5
<PAGE>   6






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


The balance sheet of Summit Environmental Corporation, Inc., the "company", at
December 31, 2000 has been taken from the company's audited financial statements
at that date. The balance sheet at June 30, 2001, the statement of operations
for the three months and the six months ended June 30, 2001, the three months
and the six months ended June 30, 2000 and the period from August 31, 1997 to
June 30, 2001, and the statement of cash flows for the six months ended June 30,
2001, the six months ended June 30, 2000 and the period from August 31, 1997 to
June 30, 2001 have been prepared by the company without audit. The financial
statements have been prepared in conformity with generally accepted accounting
principles and contain such adjustments as management feels are necessary to
present fairly, in all material aspects, the financial position and results of
operation of the company.

1.       SIGNIFICANT ACCOUNTING POLICIES

         Business Activity

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

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

         Revenue Recognition

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

         Cash

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

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


                                       6
<PAGE>   7

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

         Inventory

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

         Intangible Assets

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

         Income Taxes

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

         Property and Equipment

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

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

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

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


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

<Table>
<Caption>
        Description                            Estimated Service Life
        -----------                            ----------------------
<S>                                            <C>

        Automobiles                                          5 years
        Office furniture and equipment                     5-7 years
        Leasehold improvements                               4 years
</Table>


                                       7
<PAGE>   8

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

         Advertising and Marketing

         Advertising and marketing costs are expensed as incurred, which totaled
         $8,505 and $33,021 for the second quarters of 2001 and 2000,
         respectively.

         Use of Estimates

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

         Per Share Information

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

2.       PATENT

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

3.       LICENSES

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

4.       LEASES

         The company is obligated under various operating leases for equipment,
         vehicles, and office and warehouse space. Rent expense for all
         operating leases was $12,812 and $10,899 for the second quarters of
         2001 and 2000, respectively.




                                       8
<PAGE>   9


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


5.       COMMON STOCK

         Private Placement

         During the first quarter of 2001, the board approved a private
         placement offering for 250,000 shares of common stock at $0.50 per
         share. 200,000 of these shares were issued during the first quarter.
         The remaining 50,000 shares were issued during the second quarter of
         2001.

         Common Stock Options

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

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

         Warrants

         During the first quarter of 2001, the company issued warrants to
         acquire 100,000 shares of common stock at $1.00 per share, exercisable
         through June 30, 2002 in conjunction with the above mentioned private
         placement. During the second quarter, the company issued warrants to
         acquire another 25,000 shares of common stock at $1.00 per share,
         exercisable through June 30, 2002.

6.       RELATED PARTY TRANSACTIONS

         The following transactions occurred between the company and related
         parties:

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

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



                                       9
<PAGE>   10

         the close of the preceding month. The company has prepaid royalties to
         BioGenesis totaling $514,000 as of both December 31, 2000 and June 30,
         2001.

7.       CONCENTRATIONS

         Approximately 67 percent of the sales in the second quarter of 2001
         were made to two customers and 84 percent of the sales in the second
         quarter of 2000 were made to a single customer.

8.       INCOME TAXES

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

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

9.       NOTES PAYABLE

         As of June 30, 2001, the company was obligated under one note payable,
         due currently, described as follows:


<Table>
<Caption>
                                                                                                 Monthly
         Creditor                      Collateral         Maturity         Interest Rate         Payment          Total
         --------                      ----------         --------         -------- ----         -------          -----
<S>      <C>                           <C>                <C>              <C>                   <C>              <C>
         Austin Bank                   Motorhome          04-07-05         9.0%                  $   644          $46,934
                                                                                                                   (3,648)
                                                                                                                  --------
         Less current portion
                                                                                                                  $43,286
                                                                                                                  --------
</Table>



                                       10
<PAGE>   11



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

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

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

         Summit Environmental's sales for Q2 2001 were 89.2 percent of Q2
2000--$19,411 in Q2 2001 compared to $21,753 in Q2 2000. Gross margin was 56.3
percent for Q2 2001 compared to 69.8 percent for Q2 2000. Sales have not yet
reached a level to reflect a gross margin percentage with accuracy.

         Operating expenses dropped 24.7 percent during Q2 2001 over Q2 2000.
Operating expenses decreased by $72,193 from $292,209 in Q2 2000 to $220,016 in
Q2 2001.

         Amortization and depreciation were $45,867 in Q2 2001 and $46,024 in Q2
2000.

         Summit had a net loss from operations of $196,899 for Q2 2001, down
from a net loss of $271,503 for Q2 2000, a $74,604 or a 27.5 percent decrease.

         RESULTS OF OPERATIONS - FIRST TWO QUARTERS OF 2001 COMPARED TO FIRST
         TWO QUARTERS OF 2000

         Sales from operations increased by 61.8 percent for the first two
quarters of 2001 compared to the first two quarters of 2000. Gross margin on
these sales was 30.2 percent in the first two quarters of 2001 and 61.2 percent
in the first two quarters of 2000.

         Operating expenses were down to $491,966 for the first two quarters of
2001 compared to $608,528 for the first two quarters of 2000. Advertising and
marketing were down considerably in 2001, $31,641 compared to $96,886 in 2000.
Freight and delivery were also greatly reduced in 2001, $9,361 versus $19,589 in
2000. Printing and reproduction costs were down to $5,606 in 2001 over $16,980
in 2000 due primarily to in-house filing of press releases. Research and
development increased to $29,377 in the first two quarters of 2001 versus
$11,023 in the same period of 2000.

         We experienced a net loss of $456,293 in the first two quarters of
2001, down 21.4 percent over the $580,685 loss of the first two quarters of
2000. The loss per share of common stock was $0.04 for the first two quarters of
2001 versus $0.05 for the same period of 2000.

         Some balance sheet items that reflect significant changes from December
31, 2000 to June 30, 2001 are: cash, down to $300,080 from $428,478, accounts
receivable, up to $95,765 from $52,961, inventory, down to $761,648 from
$795,857, and accounts payable, down to $27,876 from $59,186.

         The net loss of $456,293 in the first two quarters of 2001 was
financed in part by the $268,115 proceeds of sale of 658,900 shares



                                       11
<PAGE>   12

of common stock and partly from $91,578 in amortization and depreciation.

         OVERVIEW

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

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

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

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

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

         We are also in the negotiation stage for the sale of FIREPOWER 911(TM)
for placement in military base stores. We have been notified that the first
purchase orders should be in place by September, 2001.

         Last year, the first shipment of FIREPOWER 911(TM) was packaged for
international sales with foreign language labels. Initial first market shipments
ranging from 2,000 to 5,000 cans went to Chile, Hong Kong and Japan. This
product is to be sold to the public by the local fire departments in Chile. We
and Marketing Perspectives Incorporated ("MPI") will be satisfying labeling
requirements and insurance requests for completed product liability coverage.
The order is anticipated to be as early as August 2001.

         Last year, we were notified by a direct home product television sales
channel that FIREPOWER 911(TM) would be part of its programming in 2001. QVC and
Shop at Home notified the company that product approval has been completed. QVC
is seeking a letter of verification that FIREPOWER 911(TM) is validated for
sales in all 50 states. We have such a letter posted on our web site and are
awaiting the



                                       12
<PAGE>   13

formal request from QVC's legal department.

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

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

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

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



                                       13
<PAGE>   14

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

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

         We concede that this testing process has been very tedious and
time-consuming. The reward will be a head start in the market. Regardless of the
unknowns with which the company has dealt, we and our product have not
experienced any setbacks and are moving closer to an expected final Quality
Products Listing in third quarter of 2001. The lab conducting the test protocols
for the MIL-PRF-85704C has notified us that ULTIMATE CLEAN 668(TM) has
successfully conformed with the requirements for corrosion, crazing, painted
surfaces, acrylic surfaces, and water and acid stability. The storage stability
test is the final remaining requirement and is now classified as "accelerated
storage stability." We and International Aero are making preliminary plans for
initial marketing announcements in August and initial sales in September.

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

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

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

         OUTLOOK

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

         We believe that, with the approval, listing and rating of FIREPOWER
911(TM) as a fire extinguisher, a niche market can be created. This is supported
by actions taken by the USEPA, which has been



                                       14
<PAGE>   15

mentioned previously, and actions of the Connecticut State Fire Marshal's Office
and the California State Fire Marshal's Office. Last year, we sought additional
enforcement by other state fire marshals' offices.

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

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

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

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

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

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



                                       15
<PAGE>   16

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

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

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

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

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

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

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



                                       16
<PAGE>   17

orders are scheduled for the end of August 2001.

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

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

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

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

         Our test for securing the military specification number MIL-PRF-85704C,
which will enable the company's ULTIMATE CLEAN 668(TM) jet engine cleaner to be
listed with the Department of Defense, Quality Products Listing, has proceeded
inTO classification tests for Type II concentrates and Type II ready-to-use. The
testing for this non-corrosive approval has resulted in some adjustments to the
formula for the test on ceramic and acrylic finishes. This test is also being
done in the "water soluble" category. To our knowledge, there are no other
products that are aqueous-based which can accomplish the cleaning requirements
of the test protocol or the actual engine cleanings. The expanding from the
initial Type III approvals to include the two categories of Type II greatly
increased the market potential for ULTIMATE CLEAN 668(TM). Technical testing
confirmation for protocols was received in May 2001. The company is



                                       17
<PAGE>   18

now awaiting a slotting appointment for the completion of the physical
application test in cleaning test engines Through our strategic alliance
partner, International Aero, we have initial sales to be made to major airlines
such as United, Continental, Delta, Northwest and Eastern airlines. The recent
increase in jet fuel costs has heightened the airlines' interest in ULTIMATE
CLEAN 668(TM).

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

         During February 2001, we sold our first order of FIREPOWER 911(TM) to
our distributor, Techno-Supplies, in Norway. In April 2001, Techno-Supplies
ordered its first shipment of FLAMEOUT(R). A portion of this initial order has
been sold to Exxon of Norway.

         FLAMEOUT(R)'S formal certification with the government of Brazil is
ongoing and is expected to be concluded by the end of August 2001. Sales orders
are already in place through strategic alliance partner, MPI, and are awaiting
release of this product registration number.

         Our development of ULTIMATE ABSORB 1103(TM) has led to the company's
negotiating the purchase of the patents, formulas and intellectual property
rights. Of special importance to this agreement is the completion of the
never-before-issued EPA Landfill Stamp approval. ULTIMATE ABSORB 1103(TM)
already has EPA (as non-toxic), USDA, FDA, WHO and California Title 22
approvals. However, the EPA Landfill Stamp allows for encapsulated and absorbed
materials to be deposited in landfills anywhere. On April 2, 2001, we were
notified that we had successfully stabilized heavy metals in the hazardous
materials containment portion of this testing. No other product has ever
completed this portion of the test protocol. We have introduced the absorbent in
South America, Scandinavia, Europe and in several industries within the U.S. We
expect the completion of the EPA Landfill Stamp in the last half of 2001.

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

         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: inability of the company to obtain needed
additional capital, loss of personnel - particularly chief executive officer B.
Keith Parker - as a result of accident or for health reasons, interruptions in
the supply of inventory from manufacturers of the inventory, the development of
a competing fire suppressant by a well-capitalized competitor that either is
able to develop a new product with the same attributes as our fire suppressant
or is able to discover the additives to our fire suppressant



                                       18
<PAGE>   19

that give it its unique and superior qualities, and an accident involving life
or serious bodily harm that fairly or unfairly would bring into question the
safety of using the company's fire suppressant products.



ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K

(A)      EXHIBITS

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

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

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

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

         3.2   --   Bylaws of Summit Environmental Corporation, Inc.*

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

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

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

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

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

          *    Previously filed with Form SB-2; Commission File No. 333-48675
               incorporated herein.

          **   Previously filed with Amendment No. 1 to Form SB-2; Commission
               File No. 333-48675 incorporated herein.

          ***  Previously filed with Amendment No. 5 to Form SB-2; Commission
               File No. 333-48675 incorporated herein.

(B)      FORMS 8-K

         None


                                       19
<PAGE>   20

                                   SIGNATURES

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

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



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