----

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**FORM      10-QSB**

**Summit      Environmental Corporation, Inc.**

| Texas(state                of incorporation) | 333-48659(Commission                File Number) | 73-1537206(IRS                Employer I.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 | 14     |
|                                                                                                      |   |
| Item                  3. Controls and Procedures                                                          | 21     |
|                                                                                                      |   |
| PART                  II - OTHER INFORMATION                                                              | 22     |
|                                                                                                      |   |
| Item                  1. Legal Proceedings                                                                | 22     |
|                                                                                                      |   |
| Item                  2. Unregistered Sales of Equity Securities                                          | 22     |
|                                                                                                      |   |
| Item                  6. Exhibits and Reports on Form 8-K                                                 | 22     |
|                                                                                                      |   |
| SIGNATURES                                                                                                | 25     |

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**PART      I - FINANCIAL INFORMATION**

| **Item                1.** | **Financial                  Statements** |
|----------------------------|-------------------------------------------|

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

----

**SUMMIT        ENVIRONMENTAL CORPORATION, INC.**

**CONDENSED        BALANCE SHEETS**

|                                                              |   | March                  31, 2006 (Unaudited) |       | December                  31, 2005 (Audited) |   |
|-------------------------------------------------------------------|--------|---------------------------------------------|------------|----------------------------------------------|--------|
| **Assets**                                                        |   |                                   |       |                                    |   |
| **Current                  Assets**                               |   |                                        |       |                                         |   |   |   |
| Cash                  and Cash Equivalents                        |   | $                                           | 511,824    |                                         | $      | 316,798 |   |
| Accounts                  Receivable, less allowance for doubtful |   |                                        |       |                                         |   |   |   |
| accounts                  of $169,317                             |   |                                        | 198,208    |                                         |   | 356,429 |   |
| Inventory                                                         |   |                                        | 1,004,414  |                                         |   | 1,056,890 |   |
| Restricted                  Cash                                  |   |                                        | 50,000     |                                         |   | 50,000 |   |
| Prepaid                  Expenses                                 |   |                                        | 141,791    |                                         |   | 117,932 |   |
| Total                  Current Assets                             |   |                                        | 1,906,237  |                                         |   | 1,898,049 |   |
|                                                              |   |                                        |       |                                         |   |   |   |
| **Property                  and Equipment at Cost**               |   |                                        |       |                                         |   |   |   |
| Property                  and Equipment                           |   |                                        | 366,292    |                                         |   | 359,962 |   |
| Accumulated                  Depreciation and Amortization        |   |                                        | (62,764    | )                                            |   | (59,150 | ) |
| Net                  Property and Equipment                       |   |                                        | 303,528    |                                         |   | 300,812 |   |
|                                                              |   |                                        |       |                                         |   |   |   |
| **Other                  Assets**                                 |   |                                        |       |                                         |   |   |   |
| Prepaid                  Royalties                                |   |                                        | 453,998    |                                         |   | 460,354 |   |
| Deposits                                                          |   |                                        | 2,118      |                                         |   | 2,180 |   |
| Patents                  -net of accumulated amortization         |   |                                        |       |                                         |   |   |   |
| of                  $1,167,716 and $1,128,133                     |   |                                        | 1,207,284  |                                         |   | 1,246,867 |   |
| Licenses-net                  of accumulated amortization         |   |                                        |       |                                         |   |   |   |
| of                  $68,549 and $63,120                           |   |                                        | 257,171    |                                         |   | 262,600 |   |
| Total                  Other Assets                               |   |                                        | 1,920,571  |                                         |   | 1,972,001 |   |
|                                                              |   |                                        |       |                                         |   |   |   |
| **Total                  Assets**                                 |   | $                                           | 4,130,336  |                                         | $      | 4,170,862 |   |
|                                                              |   |                                        |       |                                         |   |   |   |
| **Liabilities                  and Stockholders' Equity**         |   |                                        |       |                                         |   |   |   |
| **Current                  Liabilities**                          |   |                                        |       |                                         |   |   |   |
| Accounts                  Payable                                 |   | $                                           | 197,714    |                                         | $      | 270,478 |   |
| Notes                  Payable                                    |   |                                        | 487,927    |                                         |   | 630,047 |   |
| Accrued                  Liabilities                              |   |                                        | 73,676     |                                         |   | 85,046 |   |
| Total                  Current Liabilities                        |   |                                        | 759,317    |                                         |   | 985,571 |   |
|                                                              |   |                                        |       |                                         |   |   |   |
| **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, 25,695,853 shares issued      |   |                                        | 25,697     |                                         |   | 25,697 |   |
| Additional                  Paid in Capital                       |   |                                        | 12,455,204 |                                         |   | 11,490,200 |   |
| Accumulated                  Deficit                              |   |                                        | (9,084,882 | )                                            |   | (8,305,606 | ) |
| Treasury                  Stock - 10,000 shares                   |   |                                        | (25,000    | )                                            |   | (25,000 | ) |
| Total                  Stockholders' Equity                       |   |                                        | 3,371,019  |                                         |   | 3,185,291 |   |
|                                                              |   |                                        |       |                                         |   |   |   |
| **Total                  Liabilities and Stockholders' Equity**   |   | $                                           | 4,130,336  |                                         | $      | 4,170,862 |   |

*The          accompanying notes are an integral part of this financial          statement*

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**SUMMIT        ENVIRONMENTAL CORPORATION, INC.**

**STATEMENTS        OF OPERATIONS**

**(Unaudited)**

|                                                           |   | **Three                  Months Ended**  |       |
|----------------------------------------------------------------|--------|-----------------------------------------------|------------|
|                                                           |   | **March                  31,**           |       |
|                                                           |   | **2006**                                      |       | **2005** |   |
|                                                           |   |                                          |       |   |   |
| **Sales**                                                      |   | $                                             | 200,302    |   | $ | 209,878 |   |
| **Returns                  and Allowances**                    |   |                                          |       |   |   | - |   |
| **Net                  Sales**                                 |   |                                          | 200,302    |   |   | 209,878 |   |
|                                                           |   |                                          |       |   |   |   |   |
| **Cost                  of Sales**                             |   |                                          |       |   |   |   |   |
| Cost                  of sales                                 |   |                                          | 117,305    |   |   | 131,491 |   |
|                                                           |   |                                          |       |   |   |   |   |
| **Gross                  Profit**                              |   |                                          | 82,997     |   |   | 78,387 |   |
|                                                           |   |                                          |       |   |   |   |   |
| **Operating                  Expenses**                        |   |                                          |       |   |   |   |   |
| Selling,                  general, and administrative expenses |   |                                          | 766,959    |   |   | 214,205 |   |
| Amortization                                                   |   |                                          | 45,012     |   |   | 40,584 |   |
| Depreciation                                                   |   |                                          | 3,614      |   |   | 2,805 |   |
| Total                  operating expense                       |   |                                          | 815,585    |   |   | 257,594 |   |
|                                                           |   |                                          |       |   |   |   |   |
| **Net                  Earnings (Loss) from Operations**       |   |                                          | (732,588   | ) |   | (179,207 | ) |
|                                                           |   |                                          |       |   |   |   |   |
| **Other                  Income (Expense)**                    |   |                                          |       |   |   |   |   |
| Interest                  income                               |   |                                          | 1,581      |   |   | 1,105 |   |
| Interest                  expense                              |   |                                          | (27,224    | ) |   | (807 | ) |
| Royalty                  income                                |   |                                          | 968        |   |   |   |   |
| Gain/Loss                  on Sale of Asset                    |   |                                          | -          |   |   | - |   |
| Miscellaneous                                                  |   |                                          | (22,013    | ) |   | (2,340 | ) |
| Total                  other income (expense)                  |   |                                          | (46,688    | ) |   | (2,042 | ) |
|                                                           |   |                                          |       |   |   |   |   |
| **Net                  Loss**                                  |   | $                                             | (779,276   | ) | $ | (181,249 | ) |
|                                                           |   |                                          |       |   |   |   |   |
|                                                           |   |                                          |       |   |   |   |   |
| **Net                  Earnings (Loss) per Share**             |   | $                                             | (0.03      | ) | $ | (0.01 | ) |
|                                                           |   |                                          |       |   |   |   |   |
| **Weighted                  Average Shares**                   |   |                                          | 25,685,853 |   |   | 23,233,177 |   |

*The          accompanying notes are an integral part of this financial          statement*

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**SUMMIT          ENVIRONMENTAL CORPORATION, INC.**

**STATEMENTS        OF CASH FLOWS**

|                                                                    |   | **Three                    Months Ended** |     |
|-------------------------------------------------------------------------|--------|-------------------------------------------|----------|
|                                                                    |   | **March                    31,**          |     |
|                                                                    |   | **2006**                                  |     | **2005** |   |
|                                                                    |   |                                      |     |   |   |
| **Cash                    Flows from Operating Activities**             |   |                                      |     |   |   |   |   |
| Net                    loss                                             |   | $                                         | (779,276 | ) | $ | (181,249 | ) |
| Adjustments                    to reconcile net earnings (loss) to cash |   |                                      |     |   |   |   |   |
| used                    in operating activities                         |   |                                      |     |   |   |   |   |
| Amortization                                                            |   |                                      | 45,012   |   |   | 40,584 |   |
| Bad                    debt expense                                     |   |                                      |     |   |   |   |   |
| Provision                    for inventory losses                       |   |                                      |     |   |   |   |   |
| Cumulative                    effect of change in accounting principle  |   |                                      | -        |   |   | - |   |
| Depreciation                                                            |   |                                      | 3,614    |   |   | 2,805 |   |
| Gain                    (loss) on sale of assets                        |   |                                      | -        |   |   | - |   |
| Recission                    of Lady Burd asset purchase agreement      |   |                                      | -        |   |   | - |   |
| Common                    stock and options issued for services         |   |                                      | 255,063  |   |   | 9,950 |   |
| Change                    in assets and liabilities                     |   |                                      |     |   |   |   |   |
| Accounts                    receivable                                  |   |                                      | 158,221  |   |   | 19,773 |   |
| Inventory                                                               |   |                                      | 52,476   |   |   | (136,077 | ) |
| Prepaid                    expenses and deposits                        |   |                                      | (17,441  | ) |   | 10,512 |   |
| Accounts                    payable                                     |   |                                      | (72,764  | ) |   | 102,312 |   |
| Accrued                    liabilities                                  |   |                                      | (11,370  | ) |   | 4,897 |   |
| Net                    cash used in operating activities                |   |                                      | (366,465 | ) |   | (126,493 | ) |
|                                                                    |   |                                      |     |   |   |   |   |
| **Cash                    Flows from Investing Activities**             |   |                                      |     |   |   |   |   |
| Acquisition                    of property and equipment                |   |                                      | (6,330   | ) |   |   |   |
| Organization                    costs                                   |   |                                      | -        |   |   | - |   |
| Acquisition                    of licenses/patents                      |   |                                      |     |   |   | - |   |
| Proceeds                    from sale of equipment                      |   |                                      | -        |   |   | - |   |
| Net                    cash used in investing activities                |   |                                      | (6,330   | ) |   | - |   |
|                                                                    |   |                                      |     |   |   |   |   |
| **Cash                    Flows from Financing Activities**             |   |                                      |     |   |   |   |   |
| Loan                    proceeds                                        |   |                                      |     |   |   | 50,000 |   |
| Loan                    principal repayments                            |   |                                      | (142,120 | ) |   | - |   |
| Loan                    principal repayments - related party            |   |                                      | -        |   |   | - |   |
| Proceeds                    from sale of stock                          |   |                                      | 709,941  |   |   |   |   |
| Net                    cash provided by financing activities            |   |                                      | 567,821  |   |   | 50,000 |   |
|                                                                    |   |                                      |     |   |   |   |   |
| **Net                    Increase (Decrease) in Cash**                  |   |                                      | 195,026  |   |   | (76,493 | ) |
|                                                                    |   |                                      |     |   |   |   |   |
| Cash                    - Beginning of Period                           |   |                                      | 316,798  |   |   | 460,257 |   |
|                                                                    |   |                                      |     |   |   |   |   |
| Cash                    - End of Period                                 |   | $                                         | 511,824  |   | $ | 383,764 |   |

*The            accompanying notes are an integral part of this financial            statement*

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

|   | The                        Company follows the provisions of SEC Staff Accounting Bulletin                        (SAB) No.                        104,*"Revenue Recognition"*                        which was issued in December 2003, and recognizes revenues                        when its                        products are shipped to customers (terms are FOB shipping                        point), at which                        time evidence of a completed transaction and customer acceptance                        exists                        and when title passes. Appropriate provisions for estimated                        returns of                        product and other allowances have been made in the accompanying                        financial                        statements. SAB No. 104 codified, revised and rescinded certain                        sections                        of Staff Accounting Bulletin (SAB) No. 101,*"Revenue Recognition in Financial Statements",*                        in                        order to make this interpretive guidance consistent with                        current                        authoritative accounting guidance and SEC rules and                        regulations. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Revenues                        earned under royalty agreements are recognized when the respective                        products are sold and the royalty amounts attributable to                        the Company have                        been determined. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                        Company provides a reserve for sales returns and allowances                        in the same                        period as the related revenues are recognized, based on individual                        circumstances and historical                        experience. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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 March 31, 2006,                        was $60,836.                        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. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Inventory |
|--------|-----------|

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

|   | The                        Company periodically reviews inventory to determine which                        products, if                        any, are no longer marketable. The Company establishes a                        reserve for                        obsolete inventory to reduce its cost to management’s estimate of its net                        realizable value based on forecasts of sales for ensuing                        years and other                        factors. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | 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                        $93,717 and                        $20,046 for the first quarters of 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 $13,700 and                        $4,900, for the                        first quarters of 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                        $500 and                        $6,100, for the first quarters of 2006 and 2005,                        respectively. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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*Earnings              per Share*

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

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| 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 initial cash payments of $150,000 and 1,625,000                        shares                        of common stock of the company to be issued and delivered                        to BioGenesis                        Enterprises, Inc. The estimated aggregate amortization expense                        of patent                        rights for each of the five succeeding years is $158,333                        per year.                        Amortization expense was $39,583 and $37,743, for the three                        month periods                        ended March 31, 2006 and 2005,                        respectively. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| As                        of March 31, 2006, notes payable consisted of the                        following: |   |   |    |   |
|---------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
|                                                                                                          |   |   |    |   |
| Note                        payable, Pacific Business Capital Corporation, due                                |   |   |    |   |
| in                        monthly installments of $8,500, including interest at                               |   |   |    |   |
| 36%,                        maturing June 2006. Secured by building.                                          |   | $      | 236,191 |   |
|                                                                                                          |   |   |    |   |
| Note                        payable, Austin Bank, interest is payable monthly at                              |   |   |    |   |
| 8.5%,                        with a balloon payment due June 2006. Secured by                                 |   |   |    |   |
| a                        $50,000 certificate of deposit at Austin Bank and the                                |   |   |    |   |
| personal                        guaranty of a stockholder.                                                    |   |   | 190,900 |   |
|                                                                                                          |   |   |    |   |
| 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.                                                       |   |   | 60,836  |   |
|                                                                                                          |   |   |    |   |
|                                                                                                          |   |   | 487,927 |   |
| Less                        current maturities                                                                |   |   | 487,927 |   |
| Non-current                        maturities                                                                 |   | $      | 0       |   |

----

| 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 $7,483 and $13,652 for the first quarters of 2005                        and 2004,                        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. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

|   | During                        January 2006, the Board approved the issuance of 440,000                        options to                        purchase shares of common stock at $.92, in exchange for                        services to be                        rendered during 2006. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | At                        March 31, 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                        95 percent of the sales in the first quarter of 2006 were                        made to eight                        customers and 95 percent of the sales in the first quarter                        of 2005 were                        made to three                        customers. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **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 March 31, 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 - First Quarter of 2006 Compared to First Quarter of      2005**

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**OVERVIEW      - RECENT DEVELOPMENTS**

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**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.*

**Events      and Trends**
**.**

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**Material      Commitments for Capital Expenditures**
**.**

**Important      Factors**
**.**

**FlameOut**
**®**

**FlameOut**
**®**

**FlameOut**
**®**

**FlameOut**
**®**

**FlameOut**
**®**

----

**Ultimate      Clean**
**TM**

**      Products**
**.**

**FlameOut®**

----

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

| **Item              3.** | **Controls                and Procedures** |
|--------------------------|--------------------------------------------|

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**PART      II - OTHER INFORMATION**

| **Item              1.** | **Legal                Proceedings** |
|--------------------------|--------------------------------------|

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

| **Item              6.** | **Exhibits                and Reports on Form 8-K** |
|--------------------------|-----------------------------------------------------|

| **(a)** | **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**

|                                 |                                                                                                                  |                                    |
|--------------------------------------|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------|
|                                 | **SUMMIT              ENVIRONMENTAL CORPORATION, INC.**                                                               |
|                            |                                                                                                             |                               |
| Date: May              22, 2006 | By:                                                                                                         | */s/ B.              Keith Parker* |
|                                 |                                                                                                                       |
|                                 | Name:                  B. Keith ParkerTitle:                    Chief Executive Officer |

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