U.S.
SECURITIES AND EXCHANGE COMMISSION


Washington,
D.C. 20549




**FORM
10-QSB**





x QUARTERLY REPORT PURSUANT TO SECTION
13 OR 15(d)


OF THE
SECURITIES EXCHANGE ACT OF 1934


For the
quarterly period ended March 31, 2005





OR





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




133 East
Tyler Street


Longview,
TX 75601


800-522-7841


____________________________________________________


(Address
and telephone number of registrant's principal


executive
offices and principal place of business)





Check
whether the issuer (1) filed all reports required to be filed by Section 13
or 15(d) of the Exchange Act during the past 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 o





As of May
11, 2005, there were 23,893,636 shares of the Registrant's Common Stock, par
value $0.001 per share, outstanding.





Transitional
Small Business Disclosure Format (check one): Yes o No x














**TABLE
OF CONTENTS**





PagePART
      I - FINANCIAL INFORMATION
    3Item
      1. Financial Statements
    3Item
      2. Management’s Discussion and Analysis or Plan of
    Operation
    12Item
      3. Controls and Procedures
    15PART
      II - OTHER INFORMATION
    16Item
      1. Legal Proceedings
    16Item
      2. Unregistered Sales of Equity Securities
    16Item
      6. Exhibits and Reports on Form 8-K
    17SIGNATURES
    18









-2-





**PART
I - FINANCIAL INFORMATION**


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




Condensed
      Balance Sheets March 31, 2005 (Unaudited) and December 31, 2004
      (Audited)
    4Statements
      of Operations (Unaudited) Three Months Ended March 31, 2005 and
      2004
    5Statements
      of Cash Flows (Unaudited) Three Months Ended March 31, 2005 and
      2004
    6Notes
      to Financial Statements(Unaudited)
    7







-3-




SUMMIT
ENVIRONMENTAL CORPORATION, INC.


CONDENSED
BALANCE SHEETS


March
      31,
      2005
      (Unaudited)
    
    December
      31,
      2004
      (Audited)**Assets****Current
      Assets**Cash
      and Cash Equivalents
    
    $
    383,764
    
    $
    460,257Accounts
      Receivable, less allowance for doubtfulaccounts of
      $172,678
    
    
    43,706
    
    
    63,479Inventory
    
    
    488,185
    
    
    352,108Prepaid
      Expenses
    
    
    81,960
    
    
    86,316Total
      Current Assets
    
    
    997,615
    
    
    962,160**Property
      and Equipment at Cost**Property
      and Equipment
    
    
    80,636
    
    
    80,636Leasehold
      Improvements
    
    
    13,877
    
    
    13,877Accumulated
      Depreciation and Amortization
    
    
    (57,211
    )
    
    (54,406
    )Net
      Property and Equipment
    
    
    37,302
    
    
    40,107**Other
      Assets**Prepaid
      Royalties
    
    
    555,032
    
    
    561,188Deposits
    
    
    2,180
    
    
    2,180Patents
      and Licenses -net of accumulatedamortization of $1,051,824 and
      $1,011,240
    
    
    1,498,896
    
    
    1,539,480Total
      Other Assets
    
    
    2,056,108
    
    
    2,102,848**Total
      Assets**
    
    $
    3,091,025
    
    $
    3,105,115**Liabilities
      and Stockholders' Equity****Current
      Liabilities**Accounts
      Payable
    
    $
    243,442
    
    $
    141,130Notes
      Payable
    
    
    50,000Accrued
      Liabilities
    
    
    42,942
    
    
    38,045Total
      Current Liabilities
    
    
    336,384
    
    
    179,175**Stockholders'
      Equity**Preferred
      stock, par value $.001; 10,000,000shares authorized, no shares
      issuedCommon
      stock, par value $.001; 40,000,000shares authorized, 23,249,344
      and 23,209,344 shares issued
    
    
    23,260
    
    
    23,220Additional
      Paid in Capital
    
    
    10,154,293
    
    
    10,144,383Accumulated
      Deficit
    
    
    (7,397,912
    )
    
    (7,216,663
    )Treasury
      Stock - 10,000 shares
    
    
    (25,000
    )
    
    (25,000
    )Total
      Stockholders' Equity
    
    
    2,754,641
    
    
    2,925,940**Total
      Liabilities and Stockholders' Equity**
    
    $
    3,091,025
    
    $
    3,105,115
 The
accompanying notes are an integral part of this financial
statement









-4-




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


**Three
      Months Ended****March
      31,****2005**
    
    **2004****Sales**
    
    $
    209,878
    
    $
    42,028**Returns
      and Allowances**
    
    
    --
    
    
    --**Net
      Sales**
    
    
    209,878
    
    
    42,028**Cost
      of Sales**Cost
      of sales
    
    
    131,491
    
    
    17,693**Gross
      Profit**
    
    
    78,387
    
    
    24,335**Operating
      Expenses**Selling,
      general, and administrative expenses
    
    
    214,205
    
    
    162,354Amortization
    
    
    40,584
    
    
    40,584Depreciation
    
    
    2,805
    
    
    2,805Total
      operating expense
    
    
    257,594
    
    
    205,743**Net
      Earnings (Loss) from Operations**
    
    
    (179,207
    )
    
    (181,408
    )**Other
      Income (Expense)**Interest
      income
    
    
    1,105
    
    
    73Interest
      expense
    
    
    (807
    )
    
    (691
    )Miscellaneous
    
    
    (2,340
    )
    
    (2,089
    )Total
      other income (expense)
    
    
    (2,042
    )
    
    (2,707
    )**Net
      Loss**
    
    $
    (181,249
    )
    $
    (184,115
    )**Net
      Earnings (Loss) per Share**
    
    $
    (0.01
    )
    $
    (0.01
    )**Weighted
      Average Shares**
    
    
    23,233,177
    
    
    18,222,157
  The
accompanying notes are an integral part of this financial statement


-5-




SUMMIT
ENVIRONMENTAL CORPORATION, INC.
 STATEMENTS
OF CASH FLOWS
 **Three
      Months Ended****March
      31,****2005**
    
    **2004****Cash
      Flows from Operating Activities**Net
      loss
    
    $
    (181,249
    )
    $
    (184,115
    )Adjustments
      to reconcile net earnings (loss) to cashused in operating
      activitiesAmortization
    
    
    40,584
    
    
    40,584Depreciation
    
    
    2,805
    
    
    2,805Common
      stock and options issued for services
    
    
    9,950
    
    
    9,625Change
      in assets and liabilitiesAccounts
      receivable
    
    
    19,773
    
    
    (25,652
    )Inventory
    
    
    (136,077
    )
    
    (34,267
    )Prepaid
      expenses and deposits
    
    
    10,512
    
    
    7,142Accounts
      payable
    
    
    102,312
    
    
    17,417Accrued
      liabilities
    
    
    4,897
    
    
    638Net
      cash used in operating activities
    
    
    (126,493
    )
    
    (165,823
    )**Cash
      Flows from Investing Activities**Acquisition
      of property and equipment
    
    
    --
    
    
    (117
    )Net
      cash used in investing activities
    
    
    --
    
    
    (117
    )**Cash
      Flows from Financing Activities**Loan
      proceeds
    
    
    50,000
    
    
    --Proceeds
      from sale of stock
    
    
    --
    
    
    128,000Net
      cash provided by financing activities
    
    
    50,000
    
    
    128,000**Net
      Increase (Decrease) in Cash**
    
    
    (76,493
    )
    
    (37,940
    )Cash
      - Beginning of Period
    
    
    460,257
    
    
    114,054Cash
      - End of Period
    
    $
    383,764
    
    $
    76,114**Supplemental
      cash flow information**Cash
      paid for interest
    
    $
    --
    
    $
    --Cash
      paid for income taxes
    
    
    --
    
    
    --
 The
accompanying notes are an integral part of this financial
statement






-6-




SUMMIT
ENVIRONMENTAL CORPORATION, INC.


NOTES TO
THE CONDENSED FINANCIAL STATEMENTS


March 31,
2005


(Unaudited)







The
balance sheet of Summit Environmental Corporation, Inc., the “company”, at
December 31, 2004 has been taken from the company’s audited financial statements
at that date. The balance sheet at March 31, 2005, the statement of operations
for the three months ended March 31, 2005, and the statement of cash flows for
the three months ended March 31, 2005 have been prepared by the company without
audit. The financial statements have been prepared in conformity with accounting
principles generally accepted in the United States of America for interim
financial reporting. Accordingly, they do not include all of the information and
notes required by accounting principles generally accepted in the United States
of America for complete financial statements. These financial statements 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. Operating results for the three months ended March 31, 2005 are not
necessarily indicative of the results, which may be expected for the fiscal year
ended December 31, 2005. The interim financial statements should be read in
conjunction with the audited financial statements of the company for the year
ended December 31, 2004.





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.





RevenueRecognition





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








-7-




SUMMIT
ENVIRONMENTAL CORPORATION, INC.
 NOTES TO
THE CONDENSED FINANCIAL STATEMENTS
 March 31,
2005
 (Unaudited)





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.





AccountsReceivable





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 andcharged
      to the provision for doubtful accounts. The Company calculates this
      allowance based on historical of write-offs, level of past due accounts
      and relationships with and economic status of the
    customers.





Inventory





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





IntangibleAssets





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.





IncomeTaxes





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.





PropertyandEquipment





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.




-8-


SUMMIT
ENVIRONMENTAL CORPORATION, INC.
 NOTES TO
THE CONDENSED FINANCIAL STATEMENTS
 March 31,
2005
 (Unaudited)


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:





Description
    
    EstimatedServiceLifeOffice
      furniture and equipment
    
    
    5-7
      yearsLeasehold
      improvements
    
    
    4
      years





Advertising  and  Marketing





Advertising
      and marketing costs are expensed as incurred, which totaled $20,046 and
      $2,583 for the first quarters of 2005 and 2004, 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 $4,900 and $6,200, for the
      first quarters of 2005 and 2004,
respectively.





Research
      and development costs





The
      costs associated with research and development activities are expensed as
      incurred. Total research and development costs were approximately $6,100
      and $4,300, for the first quarters of 2005 and 2004,
      respectively.





Use  of  Estimates





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




-9-


SUMMIT
ENVIRONMENTAL CORPORATION, INC.
 NOTES TO
THE CONDENSED FINANCIAL STATEMENTS
 March 31,
2005
 (Unaudited)


Per
Share Information





Earnings
      per share is calculated by dividing net income or loss (available to
      common stockholders_ by the weighted average number of common shares
      outstanding for the period. Diluted earnings per share reflects the
      potential dilution that could occur if securities or other contracts to
      issue common stock, such as stock options, warrants, convertible preferred
      stock and convertible debentures, were exercised or converted into common
      stock. Potential dilutive securities (stock warrants, stock options) have
      not been considered since the Company reported a net loss and, according,
      their effect would be antidilutive.





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 $425,000 and 750,000 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 $175,200 from related parties. The company is the
      manufacturer/supplier of the products.





Worldwide
      exclusive marketing rights to BioRemediation Technology developed by
      Mohsen C. Amiran, Ph.D. were acquired for stock in the amount of 360,000
      shares and warrants for 180,000 shares of stock exercisable at $1.00 per
      share during the first quarter of 2003.





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 $13,652 and $17,456 for the first quarters of 2005 and 2004,
      respectively. We renewed our lease for office space for one year. The
      lease payment remained unchanged at $1,700 per month. We continue to
      maintain warehouse space on a month to month basis at $1,300 per month.







-10-





SUMMIT
ENVIRONMENTAL CORPORATION, INC.
NOTES TO
THE CONDENSED FINANCIAL STATEMENTS
March 31,
2005
(Unaudited)


5.
    COMMON
      STOCK





Private
Placement





During
      the first quarter of 2005, no shares of common stock were sold in a
      private placement.





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
      February 2004, the board of directors adopted the 2004 Stock Option Plan
      (the “2004 Plan”). The number of shares subject to the 2004 Plan is
      1,000,000.





At
      March 31, 2005, there were 397,500 options to purchase shares of common
      stock outstanding pursuant to the Plan and 480,000 options to purchase
      shares of common stock outstanding pursuant to the 2004
    Plan.





Warrants





There
      were 861,250 warrants outstanding at March 31, 2005, exercisable at $0.50
      per share through May 27, 2005. There were 1,000,000 warrants outstanding
      at March 31, 2005 exercisable at $1.00 through May 27, 2005. There were
      180,000 warrants outstanding at March 31, 2005, exercisable at $0.25 per
      share with no expiration date.





6.
    RELATED
      PARTY TRANSACTIONS








The
following transactions occurred between the company and related
parties:





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





The
company acquired a patent from BioGenesis Enterprises, Inc. (BioGenesis) on
November 2, 1998 (see Note 2). The purchase agreement requires the company to
pay BioGenesis a periodic royalty of $.50 per 16-oz. can and $.35 per 1 liter
can of FirePowerTM 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
$561,188 as of December 31, 2004 and $552,032 as of March 31, 2005.




7.
    CONCENTRATIONS





Approximately
95 percent of the sales in the first quarter of 2005 were made to one customer
and 60 percent of the sales in the first quarter of 2004 were made to three
customers.












-11-


**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 three-month
period ended March 31, 2005 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 2005 Compared to First Quarter of
2004**





Summit
Environmental’s sales for Q1 2005 were 499 percent of Q1 2004 sales - $209,878
in Q1 2005 compared to $42,028 in Q1 2004. Gross margin was 37.3 percent for Q1
2005 compared to 58.0 percent for Q1 2004. Sales have not reached a level to
generate consistent gross margin percentages.








Operating
expenses increased 31.9 percent during Q1 2005 over Q1 2004. Operating expenses
increased by $51,851 from $162,354 in Q1 2004 to $214,205 in Q1 2005. The
increase was due primarily to advertising and commissions.





Amortization
and depreciation were $43,389 in Q1 2005 and in Q1 2004.





Summit
had a net loss from operations of $179,207 for Q1 2005, down from a net loss of
$181,408 for Q1 2004, a $2,201 or a 1 percent decrease. The improvement in the
net loss was attributed primarily to the increase in sales.





**OVERVIEW
- RECENT DEVELOPMENTS**





In April
2005, we added Mr. Paul Kowalenko as Director of Sales and Marketing for the **FlameOut®** Fire
Suppressor Division of the company. Mr. Kowalenko, formerly Operations Director
for Just-In-Case-Fire, has had extensive experience in the oil and gas industry.
Paul served in capacities as Manager of Corporate Planning, Vice President of
Finance and Chief Financial Officer. Paul is already working with clients in
India, Taiwan, Poland, the logging industry and developing marketing
point-of-sales aids. Paul has a Bachelor of Commerce Degree and is a Corporate
Management Accountant from the University of Calgary.





We are
completing our second order of **FlameOut®** to be
shipped to Taiwan for its nuclear facility. The initial sale was completed last
November through Darley Pumps Odin Foam Division when **FlameOut®** was
included as the Class B Foam for a compressed air foam system by Odin Foam.





We are
completing the process for ABS (American Bureau of Shipping) certification for
sales in Poland. The ABS Certification will clear the way for our distributor
Fire Dam.





The
Yellow Stone Club, a custom residential development near Big Sky, MT which
features 8,000-square-foot-minimum residences, will be the site of an extended
demonstration of **FlameOut®** on
May18, 2005.





We will
be featuring the new **FlameOut®** aerosol
fire extinguisher in a one-minute television commercial test market to be
conducted by Media Corp. Worldwide in June 2005.




-12-




**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.*





Regular
programming on QVC of our **FirePower** **TM** aerosol
fire extinguisher began in January 2005. On the first airing in January, 11,000
cans were sold in 8.5 minutes. On March 2, 2005, 13,000 cans were sold in 10
minutes. Airings are scheduled throughout 2005. As of March 18, 2005 we have
recorded sales of $256,917 through QVC since 2002. On March 23, 2005, we shipped
QVC an order worth $94,800 for airings in the second quarter 2005.





We are
completing the preparations for retail sales of **FlameOut®** also as
an aerosol-rated fire extinguisher. **FlameOut®** aerosol
fire extinguisher is the twin sister to **FirePower** **TM** . **FlameOut®** is
offered primarily to franchise and mass marketing companies. A TV commercial
will feature **FlameOut®** during
the second quarter of 2005. **FlameOut®** aerosol
was presented at the National Hardware Show in Chicago, March 20-23, 2005. **FlameOut®** aerosol
fire extinguishers will be featured at a hardware show in Las Vegas from May 17,
2005 through May 20, 2005. We received a purchase order from Big 5 Stores for **FlameOut®** aerosol
for May delivery. The value of the purchase order to the company was
$43,000.





**FlameOut®** and **FirePower** **TM** aerosol
fire extinguishers contain the same surfactant, FlameOut®. **FlameOut®** is sold
in concentrate form. The logging industry is endorsing **FlameOut®** more and
more on its insured heavy equipment. Three insurance companies - Bituminous,
Lloyds of London and Santee - now require **FlameOut®** or a
product like **FlameOut®** to be on
all insured logging equipment for renewal purposes of existing fire coverage or
on new equipment in order to bind fire coverage. There is no other product that
has the various government approvals **FlameOut®** has, is
non-toxic, is non-corrosive and is rapidly biodegradable. As of March 18, 2005,
we have recorded sales of $35,290 to the logging industry. Bituminous Insurance
referred us into its insured market of paving and asphalt contractors during the
first quarter of 2004. On February 10, 2005 Keith Parker, Summit CEO, was the
featured speaker at the Marion County Road Builders Association hosted by Steven
Counts Paving Co. in Ocala, FL. We secured orders from other companies in
attendance. The orders for Steven Counts Paving are being handled through a new
distribution established as a result of the presentation and demonstration of
the **FlameOut®** Fire
Suppressant and **FirePower** **TM** .





**FlameOut®** has been
submitted to the U.S. Government Services Administration (“GSA”) for a federal
supply number (“FSN”) by our agent, GSA Awards, Inc. Completion is expected by
June 2005. Possession of an FSN could lead to large supply contracts for U.S.
Government Institutions, U.S. Forestry, State Forestry departments, Bureau of
Land Management, and U.S. Parks and Wildlife. We received a confirmation letter
from GSA acknowledging that the final negotiations and approval schedule and
subsequent FSN number are in final review. GSA Awards Inc., acting as an agent,
will complete this process. GSA Awards’ marketing arm, GSA BizOps, will be
acting as our marketing sales agent through an agreement in which GSA Awards pre
qualifies U.S. Government procurement requisitions where our products and
securities will satisfy the requirements. The GSA approval and FSN supply number
make our product and the requisition a match. GSA Awards does not represent
another client with products that compete with **FlameOut®** or **FirePower** **TM** . **FirePower** **TM** and **FlameOut®** are now
carried in W.S. Darley Company’s most recent fire products catalog published in
February 2005. This catalog goes to every fire department in the U.S. and a
number of fire departments in 23 foreign countries.




-13-




In April
2005 we made a first sale of **FlameOut®** to a
customer in India. The halted production of the Fire Suppression Agent AFFF in
2001 has made our product one of the most attractive alternates to replace the
market need created by AFFF. Monsanto halted production of AFFF in December
2001. One of the reasons was the toxicity of AFFF. **FlameOut®** is
non-toxic. AFFF was designed for Class B (fuel) fire suppression. **FlameOut®** is UL
listed for Class B fire and also possesses UL 162 certification for
emulsification and encapsulation of hydrocarbons thereby preventing reignition
of fires once extinguished. Our new customers in India supply fire suppression
agents for the oil and gas refining industry.





Using our
unique aerosol technology, a new product sold under the brand name **SafeTree®** for use
with Christmas Trees. Sprayed on the tree, it not only guards against fire but
extends the period when the needles stay green and do not drop. We have
developed an alliance with Noble Mountain Tree Farms, one of the world’s premier
Christmas tree growers and suppliers to companies such as Wal-Mart, Home Depot
and Lowe’s. It also sells trees through a network of Noble Tree lots. During the
fourth quarter of 2004 Noble supplied two-can samples of **SafeTree®** to more
than 50 major retailers in the U.S. that yearly sell more than 6 million Noble
trees and wreaths. This initiative with Noble was kicked off at a meeting in
Chicago in March and will be introduced at future shows in Las Vegas in May
2005. **SafeTree®** was
introduced to Target Stores by Mr. Rob Heggie, one of the members of AmBiz
Association, in April 2005. Initial response was favorable.





We work
closely with American Business Associates (AmBiz). AmBiz assists with
introductions into military, homeland security and emergency management venues,
with retail development and introductions for some of our products and with
development and financing for future retail projects. More about AmBiz can be
found at www.americanbusinessassociates.com . Through
AmBiz’s efforts, we submitted **FlameOut®** and **FlameOut®** Foam to
the U.S. Air Force chemical testing center at Tyndal Air Force Base in Florida.
The series of testing involves the protocol to find a new agent to suppress
ground-based fuel fires. Our **FlameOut®** Foam
(AFFF Replacement) and **FlameOut®** will
undergo continued toxicity testing and efficacy tests during 2005. We also will
introduce FlameOut® to the U.S. Air Force testing center at Little Rock,
Arkansas for use in the Air Force fleet of C-130 tankers in early 2005 for
wildland, wildfire applications. AmBiz is working in conjunction with us and
Noble Mountain Tree Farms for the sale of **FlameOut®** Aerosol
Fire Extinguisher and **SafeTree®** for
2005.





**FlameOut** **®** is not
just a fire suppressant. It is non-toxic, biodegradable and has significant
encapsulation features that surround and smother particles it contacts. We
demonstrated its fire-fighting and fire-retardant qualities before FEMA,
Homeland Security, Arizona State Emergency Management, the Office of Emergency
Management and the Bureau of Land Management in July 2004. The demonstration
consisted of using Evergreen Aviation’s 747 Supertanker to disperse **FlameOut** **®** as a
compressed-air foam over a path 100 to 125 feet wide for 20,000 feet. The
success of the demonstration has led us to consider **FlameOut** **®** as the
carrying agent for additional products that address environmental issues. Dr.
Amiran, one of our directors and the inventor of **FlameOut** **®** , is
addressing this expanded use of **FlameOut** **®** - uses
such as treating toxic spills or chemical exposure, cleaning the air of free
radicals in the event of terrorist attacks, and a fire retardant sealant to be
sprayed on a structure prior to evacuating an area threatened by a wildfire. We
have no revenues yet from such an expanded use of **FlameOut** **®** . Our
relationship with Evergreen Aviation is not yet the subject of an executed
contract.





We will
be demonstrating **FlameOut®** , **FirePower** **TM** and
various pieces of equipment through which **FlameOut®** can be
dispensed on May 18, 2005 at the Yellowstone Club in Big Sky, MT. More about
Yellowstone is available at www.yellowstoneclub.com .




-14-




**Ultimate
Clean** **TM** **Products** **.**





Working
with our distributor for **Ultimate
Clean** **TM** chemicals and cleaners, Asah Terra, a Washington-based bioremediation
contractor, we expect we will sell significant amounts of our chemicals and
cleaners in the heavily contaminated petroleum production areas of Nigeria. Asah
Terra has ordered products for a new cleanup project with the city of Seattle
scheduled for May. According to Asah Terra several other municipalities are
being instructed to ensure the cleanup and odor elimination at a sewage
treatment plant in Seattle.





Asah
Terra is working with the Nigerian Government and Shell Oil of Nigeria in
providing consultation and products with specific applications for what is
estimated at up to ten years of existing clean-up of contamination. One of the
first sites that we will be cleaning is a stagnate lake that allows bacteria to
grow. When it rains, the overflow provides such a large amount of toxic residue
that this site has been linked to being a leading cause of the deaths of infants
and young children in Nigeria. The contract for the initial site to be treated
was extended on May 4, 2005, in Nigeria, as notified by Asah Terra. The value of
our initial chemical sale for this project is $25,000 to $50,000. There are
reported by Asah Terra to be thousands of these sites in Nigeria. They have been
mandated by the Nigerian Government for environmental cleanup.





Asah
Terra sells some of our other **Ultimate
Clean** **TM** products
to clean the grease traps at restaurants, primarily in the Northwest United
States.





*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**





Evaluation
of disclosure controls and procedures . The
Company’s management, with the participation of the Company’s Chief Executive
Officer and Chief Financial Officer, has evaluated the effectiveness of the
Company’s disclosure controls and procedures as of March 31, 2005. Based on this
evaluation, the Company’s Chief Executive Officer and Chief Financial Officer
concluded that the Company’s disclosure controls and procedures are
effective.







-15-


**PART
II - OTHER INFORMATION**


****





**Item
      1.**
    ****Legal
      Proceedings****





In March
2005, under advisement of our corporate legal counsel, we accepted a cash
payment settlement agreement of $52,000 in our suit styled Summit
vs. Graff .





There
have been no material developments in legal proceedings earlier
reported.





No
director, officer or affiliate of the company, and no owner of record or
beneficial owner of more than 5.0% of the securities of the company, or any
associate of any such director, officer or security holder is a party adverse to
the company or has a material interest adverse to the Company in reference to
any litigation.





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





Set forth
below are the sales of our common stock since January 1, 2005 in transactions
exempt from registration pursuant to the provisions of Regulation D, Rule
506





**Date**
    
    **Person**
    
    **No.
      of****Shares**
    
    **Price****Per
      Share**
    
    **Type
      of****Consideration**01-12-05
    
    
    Chris
      Dellinges
    
    
    15,000
    
    $
    0.26
    
    
    Services
      as Chief Financial Officer01-27-05
    
    
    Keith
      Parker
    
    
    7,500
    
    $
    0.25
    
    
    Services
      as Chief Executive Officer01-27-05
    
    
    Paula
      Parker
    
    
    5,000
    
    $
    0.25
    
    
    Services
      as Vice President03-16-05
    
    
    Keith
      Parker
    
    
    7,500
    
    $
    0.24
    
    
    Services
      as Chief Executive Officer03-16-05
    
    
    Paula
      Parker
    
    
    5,000
    
    $
    0.24
    
    
    Services
      as Vice President04-07-05
    
    
    AmBiz
    
    
    94,292
    
    $
    0.20
    
    
    Services
      for Marketing Advice04-25-05
    
    
    Chris
      Dellinges
    
    
    15,000
    
    $
    0.25
    
    
    Services
      as Chief Financial Officer04-29-05
    
    
    Keith
      Parker
    
    
    15,000
    
    $
    0.25
    
    
    Services
      as Chief Executive Officer04-29-05
    
    
    Paula
      Parker
    
    
    10,000
    
    $
    0.25
    
    
    Services
      as Vice President


All of
the persons purchasing shares of common stock were known to management, they
were all accredited investors and had access to all material information
concerning the issuer.




-16-




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





**(a)**
    **Exhibits**





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





2.1
    Agreement
      of Merger of July 14, 1998, between Summit Environmental Corporation, Inc.
      and Summit Technologies, Inc.**3.1
    Articles
      of Incorporation of Summit Environmental Corporation,
  Inc.*3.1.1
    Amendment
      to Articles of Incorporation of Summit Environmental Corporation,
      Inc.**3.2
    Bylaws
      of Summit Environmental Corporation, Inc.*10.1
    1998
      Stock Option Plan adopted by Summit Environmental Corporation,
      Inc.*10.3
    Limited
      Exclusive Marketing Bilateral Agreement Between Moonlighting Distribution
      Corporation-USA and Summit Technologies, Inc. (Poder Sexual, Ultimate
      Stressex and/or Poder 24)*10.4
    Limited
      Exclusive Marketing Bilateral Agreement among B. Keith Parker,
      individually and as Chairman of the Board and CEO of Moonlighting
      Distribution Corporation-USA, d/b/a Moonlighting International, and Summit
      Technologies, Inc. (FireKare,**FirePower 911****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.+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.++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-QSB 03-31-02; Commission File No. 333-48675
      incorporated herein.+
    Previously
      filed with Form 10-KSB 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.*+
    Previously
      filed with Form 10-KSB 12-31-04, Commission File No. 333-48675
      incorporated herein.





-17-





**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.





**SUMMIT
      ENVIRONMENTAL CORPORATION, INC.**Date: May 20, 2005
    By:
    /s/ *B. Keith
      Parker*B. Keith Parker, Chief Executive
      Officer







-18-