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

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

                                       OR

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


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



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


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

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

As of September 30, 2001, there were 13,682,894 shares of the Registrant's
Common Stock, par value $0.001 per share, outstanding.

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


<PAGE>
                         PART I - FINANCIAL INFORMATION



ITEM 1.  FINANCIAL STATEMENTS













                                        2

<PAGE>
                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                            CONDENSED BALANCE SHEETS

<Table>
<Caption>
                                                                  September 30, 2001        December 31, 2000
                                                                  ------------------        -----------------
                                                                     (Unaudited)
<S>                                                               <C>                       <C>
                                ASSETS

CURRENT ASSETS
  Cash and Cash Equivalents                                          $   291,154               $   428,478
  Accounts Receivable, Less Allowance of $44,000                         113,660                    52,961
  Note receivable - related party                                         20,496                    36,231
  Inventory                                                              770,819                   795,857
  Prepaid Expenses                                                        12,354                     3,858
                                                                     -----------               -----------
        Total Current Assets                                           1,208,483                 1,317,385
                                                                     -----------               -----------

PROPERTY AND EQUIPMENT AT COST
  Property and Equipment                                                  58,465                   104,865
  Accumulated Depreciation and Amortization                              (16,823)                  (15,042)
                                                                     -----------               -----------
        Net Property and Equipment                                        41,642                    89,823
                                                                     -----------               -----------

OTHER ASSETS
  Prepaid Royalties                                                      514,000                   514,000
  Patents and Licenses                                                 2,435,000                 2,435,000
  Less:  Accumulated Amortization                                       (456,698)                 (348,466)
                                                                     -----------               -----------
        Total Other Assets                                             2,492,302                 2,600,534
                                                                     -----------               -----------
TOTAL ASSETS                                                         $ 3,742,427               $ 4,007,742
                                                                     ===========               ===========
                 LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
  Accounts Payable                                                   $    33,819               $    59,186
  Accrued Payroll                                                         18,941                    23,428
  Notes Payable - Current Portion                                             --                     3,128
                                                                     -----------               -----------
        Total Current Liabilities                                         52,760                    85,742
                                                                     -----------               -----------

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

STOCKHOLDERS' EQUITY
  Preferred stock, par value $.001; 10,000,000
    shares authorized, no shares issued                                       --                        --
  Common stock, par value $.001; 40,000,000
    shares authorized, 13,682,894 & 12,092,994
    shares issued and outstanding respectively                            13,684                    12,094
  Additional Paid in Capital                                           7,086,045                 6,637,135
  Deficit Accumulated in Development Stage                            (3,410,062)               (2,772,840)
                                                                     -----------               -----------
        Total Stockholders' Equity                                     3,689,667                 3,876,389
                                                                     -----------               -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                           $ 3,742,427               $ 4,007,742
                                                                     ===========               ===========
</Table>


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



                                        3

<PAGE>
                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

<Table>
<Caption>
                                                                      THREE MONTHS ENDED
                                                                         SEPTEMBER 30                    PERIOD FROM
                                                               ---------------------------------      AUGUST 31, 1997 TO
                                                                   2001                 2000          SEPTEMBER 30, 2001
                                                               ------------         ------------      ------------------
<S>                                                            <C>                  <C>               <C>
SALES                                                          $     19,839         $     39,745         $    539,537

COST OF SALES                                                         6,001               26,525              189,751
                                                               ------------         ------------         ------------
GROSS PROFIT                                                         13,838               13,220              349,786
                                                               ------------         ------------         ------------
OPERATION EXPENSES
  Selling, general, and administrative expenses                     163,870              265,888            3,180,611
  Amortization                                                       27,058                   --              466,395
  Depreciation                                                        1,806                5,052               41,792
                                                               ------------         ------------         ------------
        Total operating expenses                                    192,734              270,940            3,688,798
                                                               ------------         ------------         ------------

NET EARNINGS (LOSS) FROM OPERATIONS                                (178,896)            (257,720)          (3,339,012)

OTHER INCOME
  Interest income                                                     3,081                7,758               56,163
  Interest expense                                                     (478)              (2,011)             (13,477)
  Gain/Loss on Sale of Asset                                         (4,723)                  --              (13,200)
  Miscellaneous                                                          87                   22               19,058
                                                               ------------         ------------         ------------
        Total other income (expense)                                 (2,033)               5,769               48,544
                                                               ------------         ------------         ------------

NET LOSS BEFORE CUMULATIVE EFFECT OF THE
CHANGE IN ACCOUNTING PRINCIPLE                                     (180,929)            (251,951)          (3,290,468)
                                                               ------------         ------------         ------------
Cumulative effect on prior years of the change
in accounting principle, net of tax                                      --                   --             (119,594)
                                                               ------------         ------------         ------------

NET LOSS                                                       $   (180,929)        $   (251,951)        $ (3,410,062)
                                                               ============         ============         ============
NET LOSS PER SHARE BEFORE CUMULATIVE
EFFECT OF THE CHANGE IN ACCOUNTING PRINCIPLE                   $      (0.01)        $      (0.02)        $      (0.40)
                                                               ------------         ------------         ------------
Cumulative effect on prior years of the change in
accounting principle                                                     --                   --                (0.02)

NET EARNINGS (LOSS) PER SHARE                                  $      (0.01)        $      (0.02)        $      (0.42)
                                                               ============         ============         ============
WEIGHTED AVERAGE SHARES                                          13,126,318           12,030,494            8,521,821
</Table>


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


                                        4


<PAGE>
                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

<Table>
<Caption>
                                                                          NINE MONTHS ENDED
                                                                            SEPTEMBER 30
                                                                 -----------------------------------
                                                                     2001                   2000
                                                                 ------------           ------------
<S>                                                              <C>                    <C>
SALES                                                            $     82,232           $     78,301

COST OF SALES                                                          49,551                 41,480
                                                                 ------------           ------------
GROSS PROFIT                                                           32,681                 36,821
                                                                 ------------           ------------
OPERATION EXPENSES
  Selling, general, and administrative expenses                       564,258                743,024
  Amortization                                                        108,232                121,761
  Depreciation                                                         12,210                 14,683
                                                                 ------------           ------------
        Total operating expenses                                      684,700                879,468
                                                                 ------------           ------------

NET EARNINGS (LOSS) FROM OPERATIONS                                  (652,019)              (842,647)

OTHER INCOME
  Interest income                                                      11,834                 23,084
  Interest expense                                                     (2,628)                (5,683)
  Gain/Loss on Sale of Asset                                           (4,723)                (8,112)
  Miscellaneous                                                        10,314                    722
                                                                 ------------           ------------
        Total other income (expense)                                   14,797                 10,011
                                                                 ------------           ------------

NET LOSS BEFORE CUMULATIVE EFFECT OF THE
CHANGE IN ACCOUNTING PRINCIPLE                                       (637,222)              (832,636)
                                                                 ------------           ------------
Cumulative effect on prior years of the change
in accounting principle, net of tax                                        --                     --
                                                                 ------------           ------------

NET LOSS                                                         $   (637,222)          $   (832,636)
                                                                 ============           ============
NET LOSS PER SHARE BEFORE CUMULATIVE
EFFECT OF THE CHANGE IN ACCOUNTING PRINCIPLE

Cumulative effect on prior years of the change in
accounting principle

NET EARNINGS (LOSS) PER SHARE                                    $      (0.05)          $      (0.07)
                                                                 ------------           ------------
WEIGHTED AVERAGE SHARES                                            12,556,402             11,626,881
</Table>


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


                                        5


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

<Table>
<Caption>
                                                                      THREE MONTHS ENDED
                                                                         SEPTEMBER 30                    PERIOD FROM
                                                               ---------------------------------      AUGUST 31, 1997 TO
                                                                   2001                 2000          SEPTEMBER 30, 2001
                                                               ------------         ------------      ------------------
<S>                                                            <C>                  <C>               <C>

CASH FLOWS FROM OPERATING ACTIVITIES
  Net loss                                                     $   (637,222)        $   (832,636)        $ (3,410,062)
  Adjustments to reconcile net earnings (loss) to cash
  used in operating activities
    Amortization                                                    108,232              121,761              466,395
    Bad debt expense                                                     --                   --               48,435
    Cumulative effect of change in accounting principle                  --                   --              119,594
    Depreciation                                                     12,210               14,683               41,792
    Loss on sale of equipment                                         4,723                8,112               13,200
    Common stock issued for services                                     --                   --               67,494
    Change in assets and liabilities
      Accounts receivable                                           (60,699)              12,146             (198,326)
      Note receivable                                                15,735                   --               15,735
      Inventory                                                      25,038              (69,157)            (770,819)
      Prepaid insurance                                              (8,496)             (16,755)             (12,354)
      Prepaid royalties                                                  --                   --             (514,000)
      Accounts payable                                              (25,367)              28,029               33,819
      Accrued liabilities                                            (4,487)              13,517               18,941
                                                               ------------         ------------         ------------
        Net cash used in operating activities                      (570,333)            (720,300)          (4,080,156)
                                                               ------------         ------------         ------------
CASH FLOWS FROM INVESTING ACTIVITIES
  Acquisition of property and equipment                              (5,745)             (45,149)             (73,191)
  Organization costs                                                     --                   --             (129,291)
  Acquisition of licenses                                                --                   --              (60,000)
                                                               ------------         ------------         ------------
        Net cash used in investing activities                        (5,745)             (45,149)            (262,482)
                                                               ------------         ------------         ------------
CASH FLOWS FROM FINANCING ACTIVITIES
  Loan proceeds                                                          --                   --                6,554
  Loan principal repayments                                         (11,746)              (2,681)             (29,997)
  Loan principal repayments - related party                              --                   --             (150,000)
  Proceeds from sale of stock                                       450,500              822,500            4,807,235
                                                               ------------         ------------         ------------
        Net cash provided by financing activities                   438,754              819,819            4,633,792
                                                               ------------         ------------         ------------

NET INCREASE (DECREASE) IN CASH                                    (137,324)              54,370              291,154

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

Cash - End of Period                                           $    291,154         $    640,227         $    291,154
                                                               ============         ============         ============
</Table>


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



                                        6


<PAGE>


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

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

1.       SIGNIFICANT ACCOUNTING POLICIES

         Business Activity

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

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

         Revenue Recognition

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

         Cash

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



                                        7

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


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

         Inventory

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

         Intangible Assets

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

         Income Taxes

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

         Property and Equipment

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

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

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

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

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

<Table>
<Caption>

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


                                       8


<PAGE>


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


         Advertising and Marketing

         Advertising and marketing costs are expensed as incurred, which totaled
         $7,009 and $27,969 for the third quarters of 2001 and 2000,
         respectively.

         Use of Estimates

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

         Per Share Information

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

2.       PATENT

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

3.       LICENSES

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

4.       LEASES

         The company is obligated under various operating leases for equipment,
         vehicles, and office and warehouse space. Rent expense for all
         operating leases was $16,904 and $11,035 for the third quarters of 2001
         and 2000, respectively.



                                        9

<PAGE>


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


5.       COMMON STOCK

         Private Placement

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

         Common Stock Options

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

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

         Warrants

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

6.       RELATED PARTY TRANSACTIONS

         The following transactions occurred between the company and related
         parties:

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



                                       10

<PAGE>


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


         The company acquired a patent from BioGenesis Enterprises, Inc.
         (BioGenesis) on November 2, 1998 (see Note 2). The purchase agreement
         requires the company to pay BioGenesis a periodic royalty of $.50 per
         16-oz. can and an equivalent (approximately 7 percent) on all other
         product categories using the fire suppressant technology. One-half of
         all periodic royalty fees due to BioGenesis will be credited against
         the advance royalty fee (until fully recovered) and one-half will be
         paid to BioGenesis in cash on the 30th of each month based upon
         invoiced sales through the close of the preceding month. The company
         has prepaid royalties to BioGenesis totaling $514,000 as of both
         December 31, 2000 and September 30, 2001.

7.       CONCENTRATIONS

         Approximately 29 percent of the sales in the third quarter of 2001 were
         made to two customers and 92 percent of the sales in the third quarter
         of 2000 were made to a single customer.

8.       INCOME TAXES

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

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



                                       11

<PAGE>


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

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

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

         Summit Environmental's sales for Q3 2001 were down $19,906, or 50
percent of sales in Q3 2000 - $19,839 in Q3 2001 compared to $39,745 in Q3 2000.
Gross margin was 69.8 percent for Q3 2001 compared to 33.3 percent for Q3 2000.
Sales have not yet reached a level to reflect a gross margin percentage with
accuracy.

         Operating expenses decreased $78,206, or 28.9 percent during Q3 2001 as
compared with Q3 2000 - from $270,940 to $192,734. Management attributes the
decrease primarily to the following decreases in Q3 2001 from expenses in Q3
2000:

         o    marketing expense - from $27,969 to $6,959,

         o    officer compensation - from $50,099 to $37,500,

         o    travel and entertainment - from $19,459 to $3,493,

         o    amortization - from $40,587 to $27,058,

         o    automobile expense - from $7,065 to $1,872

         o    depreciation - from $5,052 to $1,806, and

         o    office expenses - from $8,306 to $3,499.

         Summit had a net loss of $180,929 for Q3 2001, down from a net loss of
$251,951 for Q3 2000, a $71,022 or a 28.2 percent decrease.

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

       Sales from operations increased slightly from $78,301 during the first
three quarters of FY 2000 to $82,232 during the first three quarters of 2001.
Gross margin on these sales was 39.7 percent in the first three quarters of
2001, down from 47 percent in the first three quarters of 2000.


                                       12

<PAGE>


       Operating expenses were down to $684,700 for the first three quarters of
2001 compared to $879,468 for the first three quarters of 2000 - a decrease of
$194,768 or 22.1 percent. Management attributes the decrease primarily to the
following decreases in the first three quarters of 2001 from the first three
quarters of 2000:

         o    automobile expense - from $21,897 to $7,321,

         o    commissions - from $12,770 to $357,

         o    marketing - from $120,404 to $32,577,

         o    office expenses - from $27,492 to $16,974,

         o    officer compensation - from $147,498 to $121,258,

         o    postage and delivery - from $27,363 to $17,399,

         o    printing and reproduction - from $17,918 to $3,961,

         o    S.E.C. reporting expenses - from $34,191 to $16,815, and

         o    travel and entertainment - from $63,676 to $24,064.

       We experienced a net loss of $637,222 in the first three quarters of
2001, down 23.5 percent from the $832,636 loss of the first three quarters of
2000. The loss per share of common stock was $0.05 for the first three quarters
of 2001 versus $0.07 for the same period of 2000.

       Some balance sheet items that reflect significant changes from December
31, 2000 to September 30, 2001 are: cash, down to $291,154 from $428,478;
accounts receivable, up to $113,660 from $52,961; property and equipment, down
to $58,465 from $104,865; and accounts payable, down to $33,819 from $59,186.

       The net loss of $637,222 in the first three quarters of 2001 was financed
in part by the $450,500 proceeds of sale of shares of common stock and partly
from a $137,324 decrease in cash and cash equivalents..

         OVERVIEW

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

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


                                       13

<PAGE>


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

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

         Still believing in the uniqueness of an aerosol product providing
safety and ease of use for all consumers, we negotiated an agreement with a
firm, Triple-S Marketing, to provide the in-store service required by some of
the nation's larger retailers. We focused on Triple-S because of its emphasis on
home improvement stores. One such national chain has approved FIREPOWER 911(TM)
for its stores, scheduled to appear in the 4th Quarter of 2001 to the 1st
Quarter of 2002. The store and its locations will be made public when the
appropriate time occurs. According to the Home Safety Products buyer for a large
home improvement store chain, they will be featuring FIREPOWER 911(TM) upon
completion of the redesign of the company's home safety products section of the
store. Management continues to report the information reported to the company.

         We are also in the negotiation stage for the sale of FIREPOWER 911(TM)
for placement in military base stores. We have been notified that the first
purchase orders should be in place by September, 2001. Based on the events of
September 11, 2001, the company was notified that buyers' approval for FIREPOWER
911(TM) was still in place. However, it would be the 1st Quarter, 2002, before
we should anticipate orders.

         Last year, the first shipment of FIREPOWER 911(TM) was packaged for
international sales with foreign language labels. Initial first market shipments
ranging from 2,000 to 5,000 cans went to Chile, Hong Kong and Japan. 5,000 cans
were to be sold to the public by the local fire departments in Chile. We and
Marketing Perspectives Incorporated ("MPI") will be satisfying labeling
requirements and insurance requests for completed product liability coverage.
The order was anticipated as early as August 2001, according to information
supplied to the Company by MPI. FIREPOWER 911(TM) has also been approved for the
Federales (military police) as part of their military equipment felt. FIREPOWER
911(TM) will be on these equipment belts as a tool for riot control due to fire
bombs thrown into crowds at large public events such as soccer matches. MPI has
been reporting to the Company since September 2001, that the instructions have
been given to issue the purchase order for this sale. The Company is waiting on
MPI to provide said purchase order.



                                       14
<PAGE>


         Last year, we were notified by a direct home product television sales
channel that FIREPOWER 911(TM) would be part of its programming in 2001. QVC and
Shop at Home notified the company that product approval has been completed. QVC
is seeking a letter of verification that FIREPOWER 911(TM) is validated for
sales in all 50 states. We have such a letter posted on our web site and are
awaiting the formal request from QVC's legal department. There has been to
further information given to the Company from QVC. The Company has complied with
all requirements and passed Quality Control requirements for product shipping.

         Shop at Home's home-products buyer conducted a conference call with
management in April 2001. The conclusion of the meeting was that a contract was
to be prepared and sent to us. We have no definite date to report at this time
on either venue. Management has not had any further contact from Shop at Home.
The Company believes that this will be a significant income source for the
Company once this process is initiated.

         Our strategic alliance partner, International Aero, Inc., is the
world's largest reconfiguration company for commercial aircraft. We and
International Aero have been working on the minimum performance standards
requirements established by the Federal Aviation Administration. Previously, the
handheld fire extinguishers onboard all commercial aircraft contained Halon
1211. The Geneva Peace Conference banning of Halon 1211 included a catastrophic
exposure clause called Mission Critical that allowed the airline industry an
extension of time before these extinguishers faced mandated replacement. The
testing protocol for selecting the replacement agent has been published by the
FAA. FLAMEOUT(R) meets all of the technical criteria required by the performance
standards. Last year, the actual Gross Volume Production Tests of FLAMEOUT(R) on
jet fuel and heptane were conducted. The initial performance tests will be
conducted at International Aero's new licensed fire testing facility. During
2001, the FAA project will be accelerated. The Company is waiting for the
testing to proceed. Many changes are occurring with FAA due to the events of
September 11, 2001.

         International Aero's distribution rights extend to the aviation
industry, the United States Military, and the United States Gulf Coast petroleum
industry. In conjunction with the research department at International Aero, we
are developing an alternative to another fire-fighting agent, AFFF. AFFF, used
primarily for petroleum fires, is a known cancer-causing agent. Our intent with
International Aero is to develop a non-toxic, non-corrosive, biodegradable
alternative for AFFF. Last year, FLAMEOUT II(TM) was tested at the Ansul fire
test facility in Marinette, Wisconsin. The foam stability test was very
successful. Additionally, FLAMEOUT II(TM) was the only product tested to pass
the UL162 encapsulation and emulsification test. This new formula is being
tested by Jockel Manufacturing in Germany and by the National State Fire
Department and Testing Agency in Brazil, Exxon of Norway, The Polish Navy and is
scheduled for official United States Air Force testing beginning the 1st quarter
of 2002.

         We have developed a non-toxic, biodegradable turbine cleaner for use on
jet engines. In only fifteen minutes, ULTIMATE CLEAN 668(TM) can remove enough
residue from jet engine blades that the next flight would experience fuel
savings sufficient to pay for the expense of the cleaning. The cleaning of


                                       15

<PAGE>


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

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

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

         We concede that this testing process has been very tedious and
time-consuming. The reward will be a head start in the market. Regardless of the
unknowns with which the company has dealt, we and our product have not
experienced any setbacks and are moving closer to an expected final Quality
Products Listing in the fourth quarter of 2001. The lab conducting the test
protocols for the MIL-PRF-85704C has notified us that ULTIMATE CLEAN 668(TM) has
successfully conformed with the requirements for corrosion, crazing, painted
surfaces, acrylic surfaces, and water and acid stability. The storage stability
test is the final remaining requirement and is now classified as "accelerated
storage stability." Application was formally requested by the United States Navy
and we and International Aero promptly submitted said application. Our physical
testing request has been accepted at Pax River.

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

         In Brazil 4th Quarter 2001, we anticipate that FLAMEOUT(R) will receive
its official government registration number. We introduced FLAMEOUT II(R) into
Brazil because of the elimination of the sale of AFFF. This added to the length
of time before final product approval but greatly increased the size of the
marketplace. This will clear the way for us to begin sales through Marketing
Perspectives Incorporated ("MPI"). Their distributor in Brazil has orders to be
filled promptly when the certification process is completed. This approval will
also be accepted in the other Mercosur Pact countries--Argentina, Uruguay and
Paraguay.


                                       16

<PAGE>


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

         During the 3rd Quarter of 2000, management gave Paula Parker,
Vice-President for Shareholder Relations, a directive to develop a new product
line, a color cosmetic line to compliment the already developed skin care
cosmetic line, Pannache. This product line is environmentally friendly and made
with premium botanical and natural essential oils and vitamins.

         The idea for the star product of the color line was to develop a
semi-permanent, long-wearing, no smear or stain lip color. Companies like Avon,
Beauty Control, Max Factor, Revlon, Cover Girl and Maybelline have developed
products they tout as long-wear, no smear; however, we believe they do not
perform as advertised. Luscious Lips will stay on 8 to 10 hours and will not
come off until removed with remover. The development phase began in September
2000 with final formula approvals in June 2001. The Company received four of the
twelve selected colors in August and began the first of two directed test
markets. One market was to sell product directly to performing groups such as
dance lines, dance schools, high school drill teams, cheerleaders and twirling
groups. Prior to beginning, the Company secured the endorsements during July for
the Miss Texas and Miss Arkansas Pageants. Both Stacy James (Miss Texas 2001)
and Jessie Ward (Miss Arkansas 2001) were using Luscious Lips during their state
pageants when they won their respective pageants. Stacy was in the top twenty
and Jessie was a top ten finalist in the Miss America Pageant.

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

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

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

         The initially established dealer network attained a closing ratio of
close to 100% presentations being closed and purchasing the initial inventory
for a dealer. A dealer purchases at 50% off of retail


                                       17

<PAGE>

and makes 100% profit on resale. The Company's margin is at 106%. The direct
sales test market directed to drill teams and cheerleading groups produced a
100% closing ratio. We have become an associate member of the Texas High School
Dance and Drill Teams Association, whose state convention is held in Houston,
Texas, January 3-5, 2002. There are 178,000 drill team participants in high
schools in Texas each year. Couple this with the middle and high school
cheerleaders, and the market is over 500,000 participants in Texas alone. We
will introduce a targeted fund raising program especially designed for these
groups at the January association meeting.

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

         OUTLOOK

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

         We continue to believe that, with the approval, listing and rating of
FIREPOWER 911(TM) as a fire extinguisher, a niche market can be created. This is
supported by actions taken by the USEPA, which has been mentioned previously,
and actions of the Connecticut State Fire Marshal's Office and the California
State Fire Marshal's Office. Last year, we sought additional enforcement by
other state fire marshals' offices.

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

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

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


                                       18

<PAGE>


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

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

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

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

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

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

         Presenting the information in this format last year, we negotiated an
agreement with a national marketing and merchandising company, Triple S
Marketing, that places the products they represent into two of the largest home
building products stores in the country. The senior buyer for one of these
chains


                                       19

<PAGE>

of stores has approved FIREPOWER 911(TM). A redesign of the home safety products
section began in June 2001. Currently, FIREPOWER 911(TM) is scheduled to appear
in these stores but we do not have a firm date.

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

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

         Another nationwide marketing company that merchandises products into
military base stores and does "in and outs" with the large mass merchandisers, J
and S Sales and Marketing, presented FIREPOWER 911(TM) in January and February
of 2001, after receiving initial approvals and submitting FIREPOWER 911(TM) for
quality analysis with two companies. On March 14, 2001, FIREPOWER 911(TM) was
approved with Army-Air Force Exchange Services ("AAFES") to go into 160 military
PX stores worldwide. Initial orders were scheduled for the end of August 2001.
Due to the events of September 11, 2001, the Company has been notified that
orders will not occur until first quarter, 2002.

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

         The Company has executed an agreement for the sale of FIREPOWER 911(TM)
with Lighthouse America and their direct sales company TEAMFIRE. TEAMFIRE
previously had 8,000 direct dealers selling a portable fire product that was
classified as a portable fire extinguisher by State Fire Marshals. TEAMFIRE has
a great appreciation for FIREPOWER 911(TM) because of their experience with the
Fire Marshal's offices. With FIREPOWER 911(TM) which is the only rated and
validated portable fire extinguisher in an aerosol can in the world, TEAMFIRE
feels that they will quickly begin to move FIREPOWER 911(TM) through their
established network of direct dealers. Before regulatory measures halted
TEAMFIRE's selling, previous sales were 1.6 million dollars from January through
August, 2000. The first shipment of product to Lighthouse is scheduled for the
first of November, 2001.


                                       20

<PAGE>
         FLAMEOUT(R) has been submitted to the United States Forestry Service
through its technology development program in order to satisfy the requirements
for qualification testing as a Wildland Fire Chemical. This test protocol will
be ongoing for eighteen months. The Forestry Service requested and we supplied
the actual test product in order to complete the protocol through our Canadian
Strategic Alliance Partner, Mark Hays dba 614751 Alberta Limited, the arial fire
fighting company Con Air, and the Canadian Forestry Service are following the
U. S. Forestry Service's test. Feedback is that FIREPOWER 911(TM) is performing
very favorably. The reports received by the Company are that the Canadian
Forestry will accept the U. S. Forestry approval for immediate sales in Canada.
The Company has been notified of pending orders at Con Air. We will be in line
to secure the approval of FLAMEOUT(R) in second quarter 2002.

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

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

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


                                       21

<PAGE>

The company is now awaiting a slotting appointment for the completion of the
physical application test in cleaning test engines Through our strategic
alliance partner, International Aero, we have initial sales to be made to major
airlines such as United, Continental, Delta, Northwest and Eastern airlines. The
recent increase in jet fuel costs has heightened the airlines' interest in
ULTIMATE CLEAN 668(TM). During September, 2001, formal application for the
physical test was submitted to and accepted by the United States Navy. The
Company is anticipating the long-awaited announcements during Quarter 4, 2001.

         International marketing agreements were negotiated and executed last
year. A key element of these agreements is the revenue sharing clause that
provides us profit sharing from the tools, devices or mechanisms into which
FLAMEOUT(R) is introduced for resale. Global agreements reached last year
included the formation of Summit Environmental Europe BV, South Africa and
Canada. We have been assisting our distributor partners with necessary testing,
listing, ratings and certification in order to complete the registration process
in each of these countries. Approval from The Polish Navy is anticipated during
4th Quarter, 2001.

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

         FLAMEOUT(R)'S formal certification with the government of Brazil is
ongoing and is expected to be concluded by the end of 4th Quarter, 2001. Sales
orders are already in place through strategic alliance partner, MPI, and are
awaiting release of this product registration number.

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

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

         Successful test markets for direct dealer sales and competition group
sales have shown us two high volume markets. Both test markets provided nearly
100% closing rations. The profit margins are greater than any of the companies
other product whether sold wholesale or direct to the consumer from the company.


                                       22

<PAGE>


         A new innovative fund raising program will be kicked off in January
selling Luscious Lips through high school drill teams, cheerleading groups and
twirling groups. We will also be attending a national show each month promoting
the entire line and securing new dealers. International expansion is also
anticipated from those shows as the shows for 2002 will include Italy, Hong Kong
and Canada.

         Plans for a 60-second or 120-second info-commercial are planned for
Luscious Lips in the 1st Quarter of 2002.


         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 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a) EXHIBITS

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


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

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

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

  3.2      -    Bylaws of Summit Environmental Corporation, Inc.*

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

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


                                       23

<PAGE>

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

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

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

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

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

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



(b) FORMS 8-K

    None



                                   SIGNATURES

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

Date:  November 13, 2001                Summit Environmental Corporation, Inc.


                                          /s/ B. KEITH PARKER
                                        ----------------------------------------
                                        B. Keith Parker, Chief Executive Officer



                                       24