<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 June 30, 2002

                                       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)


                              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)

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 August 8, 2002, there 14,812,994 were 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

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


<Table>
<Caption>


                                                   June 30, 2002 (Unaudited)     December 31, 2001
                                                   -------------------------     -----------------
                         ASSETS

<S>                                                <C>                           <C>
CURRENT ASSETS
  Cash and Cash Equivalents                              $       187,612            $       193,806
  Accounts Receivable, Less Allowance of $44,000                 151,518                    137,460
  Note receivable - related party                                 20,496                     20,496
  Inventory                                                      767,497                    769,644
  Prepaid insurance                                                4,183                      4,183
                                                         ---------------            ---------------
    Total Current Assets                                       1,131,306                  1,125,589
                                                         ---------------            ---------------

PROPERTY AND EQUIPMENT AT COST
  Property and Equipment                                          66,384                     57,185
  Accumulated Depreciation and Amortization                      (26,392)                   (20,782)
                                                         ---------------            ---------------
    Net Property and Equipment                                    39,992                     36,403
                                                         ---------------            ---------------

OTHER ASSETS
  Prepaid Royalties                                              711,505                    511,505
  Deposits                                                         1,950                      1,550
  Patents and Licenses                                         2,847,667                  2,297,667
  Less:  Accumulated Amortization                               (429,903)                  (348,466)
                                                         ---------------            ---------------
    Total Other Assets                                         3,131,219                  2,462,256
                                                         ---------------            ---------------

TOTAL ASSETS                                             $     4,302,517            $     3,624,248
                                                         ===============            ===============

          LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
  Accounts Payable                                       $       537,059            $        33,989
  Accrued Payroll                                                 20,684                     20,906
                                                         ---------------            ---------------
    Total Current Liabilities                                    557,743                     54,895
                                                         ---------------            ---------------

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, 14,262,994 & 13,342,994
   shares issued and outstanding respectively                     14,264                     13,344
  Common stock subscribed                                            140                         --
  Additional Paid in Capital                                   7,625,325                  7,121,385
  Deficit Accumulated in Development Stage                    (3,894,955)                (3,565,376)
                                                         ---------------            ---------------
    Total Stockholders' Equity                                 3,744,774                  3,569,353
                                                         ---------------            ---------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY               $     4,302,517            $     3,624,248
                                                         ===============            ===============
</Table>



                                       2

<PAGE>



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

<Table>
<Caption>


                                                                THREE MONTHS ENDED
                                                                      JUNE 30                    PERIOD FROM
                                                         ---------------------------------    AUGUST 31, 1997 TO
                                                               2002               2001          JUNE 30, 2002
                                                          ---------------    ---------------  ------------------

<S>                                                       <C>                <C>              <C>
SALES                                                     $        24,688    $        19,411    $       645,298

COST OF SALES                                                      12,400              8,480            219,444
                                                          ---------------    ---------------    ---------------

GROSS PROFIT                                                       12,288             10,931            425,854
                                                          ---------------    ---------------    ---------------

OPERATION EXPENSES
    Selling , general, and administrative expenses                137,701            174,149          3,622,381
    Amortization                                                   40,584             40,587            601,933
    Depreciation                                                    2,805              5,280             51,361
                                                          ---------------    ---------------    ---------------
        Total operating expense                                   181,090            220,016          4,275,675
                                                          ---------------    ---------------    ---------------

NET EARNINGS (LOSS) FROM OPERATIONS                              (168,802)          (209,085)        (3,849,821)

OTHER INCOME
    Interest income                                                   607              3,181             59,357
    Interest expense                                                   --             (1,222)           (13,485)
    Royalty income                                                  1,252                 --              5,575
    Gain/Loss on Sale of Asset                                         --                 --            (13,200)
    Miscellaneous                                                      --             10,227             36,213
                                                          ---------------    ---------------    ---------------
        Total other income (expense)                                1,859             12,186             74,460
                                                          ---------------    ---------------    ---------------

NET LOSS BEFORE CUMULATIVE EFFECT OF THE
CHANGE IN ACCOUNTING PRINCIPLE                                   (166,943)          (196,899)        (3,775,361)
                                                          ---------------    ---------------    ---------------

Cumulative effect on prior years of the change
in accounting principle, net of tax                                    --                 --           (119,594)
                                                          ---------------    ---------------    ---------------

NET LOSS                                                  $      (166,943)   $      (196,899)   $    (3,894,955)
                                                          ===============    ===============    ===============

NET LOSS PER SHARE BEFORE CUMULATIVE
EFFECT OF THE CHANGE IN ACCOUNTING PRINCIPLE              $         (0.01)   $         (0.02)   $         (0.41)
                                                          ---------------    ---------------    ---------------

Cumulative effect on prior years of the change in
accounting principle                                                   --                 --              (0.01)

NET EARNINGS (LOSS) PER SHARE                             $         (0.01)   $         (0.02)   $         (0.42)
                                                          ===============    ===============    ===============

WEIGHTED AVERAGE SHARES                                        14,215,521         12,363,910          9,311,057
</Table>


                                       3

<PAGE>



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


<Table>
<Caption>

                                                                  SIX MONTHS ENDED
                                                                       JUNE 30
                                                         -----------------------------------
                                                               2002               2001
                                                         ----------------    ---------------

<S>                                                       <C>                <C>
SALES                                                     $        66,337    $        62,393

COST OF SALES                                                      17,708             43,550
                                                          ---------------    ---------------
GROSS PROFIT                                                       48,629             18,843
                                                          ---------------    ---------------

OPERATION EXPENSES
  Selling, general, and administrative expenses                   298,199            400,388
  Amortization                                                     81,437             81,174
  Depreciation                                                      5,610             10,404
                                                          ---------------    ---------------
    Total operating expense                                       385,246            491,966
                                                          ---------------    ---------------

NET EARNINGS (LOSS) FROM OPERATIONS                              (336,617)          (473,123)

OTHER INCOME
  Interest income                                                   1,470              8,753
  Interest expense                                                     (7)            (2,150)
  Royalty income                                                    5,575                 --
  Gain/Loss on Sale of Asset                                           --                 --
  Miscellaneous                                                        --             10,227
                                                          ---------------    ---------------
    Total other income (expense)                                    7,038             16,830
                                                          ---------------    ---------------

NET LOSS BEFORE CUMULATIVE EFFECT OF THE
CHANGE IN ACCOUNTING PRINCIPLE                                   (329,579)          (456,293)
                                                          ---------------    ---------------

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

NET LOSS                                                  $      (329,579)   $      (456,293)
                                                          ===============    ===============

NET LOSS PER SHARE BEFORE CUMULATIVE
EFFECT OF THE CHANGE IN ACCOUNTING PRINCIPLE              $         (0.02)   $         (0.04)
                                                          ---------------    ---------------

Cumulative effect on prior years of the change in
accounting principle

NET EARNINGS (LOSS) PER SHARE                             $         (0.02)   $         (0.04)
                                                          ===============    ===============

WEIGHTED AVERAGE SHARES                                        13,870,065         12,265,112
</Table>




                                       4

<PAGE>


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


<Table>
<Caption>

                                                                      SIX MONTHS ENDED
                                                                            JUNE 30                     PERIOD FROM
                                                               ---------------------------------    AUGUST 31, 1997 TO
                                                                    2002               2001           JUNE 30, 2002
                                                               ---------------    ---------------   ------------------

<S>                                                            <C>                <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss                                                       $      (329,579)   $      (456,293)   $    (3,894,955)
Adjustments to reconcile net earnings (loss) to cash
used in operating activities
  Amortization                                                          81,437             81,174            601,933
  Bad debt expense                                                          --                 --             48,435
  Cumulative effect of change in accounting principle                       --                 --            119,594
  Depreciation                                                           5,610             10,404             51,361
  Gain (loss) on sale of assets                                             --                 --              2,753
  Common stock issued for services                                          --                 --             67,494
  Change in assets and liabilities
    Accounts receivable                                                (14,058)           (42,804)          (236,184)
    Note receivable                                                         --             15,735                 --
    Inventory                                                            2,147             34,209           (767,497)
    Prepaid expenses                                                        --              2,260           (517,238)
    Deposits                                                              (400)                --               (400)
    Accounts payable                                                     3,070            (31,310)            37,059
    Accrued liabilities                                                   (222)            (4,931)            20,684
                                                               ---------------    ---------------    ---------------
      Net cash used in operating activities                           (251,995)          (391,556)        (4,466,961)
                                                               ---------------    ---------------    ---------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Acquisition of property and equipment                                 (9,199)            (3,152)           (81,110)
  Organization costs                                                        --                 --           (129,291)
  Acquisition of licenses/patents                                      (25,000)                --           (110,000)
  Proceeds on sale of equipment                                             --                 --             47,440
                                                               ---------------    ---------------    ---------------
      Net cash used in investing activities                            (34,199)            (3,152)          (272,961)
                                                               ---------------    ---------------    ---------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Loan proceeds                                                             --                 --              6,554
  Loan principal repayments                                                 --             (1,805)           (66,990)
  Loan principal repayments - related party                                 --                 --           (134,265)
  Proceeds from sale of stock                                          280,000            268,115          5,122,235
                                                               ---------------    ---------------    ---------------
      Net cash provided by financing activities                        280,000            266,310          4,927,534
                                                               ---------------    ---------------    ---------------

NET INCREASE (DECREASE) IN CASH                                         (6,194)          (128,398)           187,612

Cash - Beginning of Period                                             193,806            428,478                 --
                                                               ---------------    ---------------    ---------------

Cash - End of Period                                           $       187,612    $       300,080    $       187,612
                                                               ===============    ===============    ===============

SUPPLEMENTAL CASH FLOW INFORMATION
  Noncash investing and financing activities
    Issuance of 500,000 shares of common stock at
    $0.45 per share and $500,000 in accounts payable
    in exchange for patent rights and prepaid royalties        $       725,000    $            --    $       725,000
</Table>




                                       5
<PAGE>


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


The balance sheet of Summit Environmental Corporation, Inc., the "company", at
December 31, 2001 has been taken from the company's audited financial statements
at that date. The balance sheet at June 30, 2002, the statement of operations
for the three months and the six months ended June 30, 2002, the three months
and the six months ended June 30, 2001 and the period from August 31, 1997 to
June 30, 2002, and the statement of cash flows for the six months ended June 30,
2002, the six months ended June 30, 2001 and the period from August 31, 1997 to
June 30, 2002 have been prepared by the company without audit. The financial
statements have been prepared in conformity with generally accepted accounting
principles and contain such adjustments as management feels are necessary to
present fairly, in all material aspects, the financial position and results of
operation of the company.

1.       SIGNIFICANT ACCOUNTING POLICIES

         Business Activity

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

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

         Revenue Recognition

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

         Cash

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

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




                                       6

<PAGE>

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


         Inventory

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

         Intangible Assets

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

         Income Taxes

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

         Property and Equipment

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

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

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

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

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

                  Description                           Estimated Service Life
                  -----------                           ----------------------
                  Automobiles                                 5 years
                  Office furniture and equipment              5-7 years
                  Leasehold improvements                      4 years



                                       7

<PAGE>

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


         Advertising and Marketing

         Advertising and marketing costs are expensed as incurred, which totaled
         $8,996 and $9,055 for the second quarters of 2002 and 2001,
         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.

         On October 11, 2001, Summit and Lady Burd Exclusive Private Label
         Cosmetics entered into a Letter of Intent for the purchase by Summit
         from Lady Burd of the patent and intellectual property rights for the
         formulas to "Indelible Lips or Luscious Lips". The agreement calls for
         incremental payments totaling $350,000 plus 500,000 shares of stock in
         SEVT. A continuing royalty of $0.30 per tube is payable to Lady Burd.
         An advanced royalty of $200,000 will also be paid. An offset to the
         $0.30 royalty will occur causing $0.15 to be paid to Lady Burd until
         Summit has recovered the advanced royalty. The agreement went into
         effect on February 27, 2002.

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.




                                       8
<PAGE>

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


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 $9,517 and $12,812 for the second quarters of 2002
         and 2001, respectively.

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 fourth quarter of 2001, the company issued warrants to
         acquire 35,000 shares of common stock at $1.00 per share, exercisable
         through April 29, 2005 in conjunction with the above mentioned private
         placement. During first quarter 2002, warrants issued in conjunction
         with the private placement were for 85,000 shares.

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,



                                       9
<PAGE>

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


         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 June 30, 2001.

7.       CONCENTRATIONS

         Approximately 71 percent of the sales in the second quarter of 2002
         were made to six customers and 67 percent of the sales in the second
         quarter of 2001 were made to two customers.

8.       INCOME TAXES

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

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

9.       AGREEMENTS

         In January 2002, Summit entered into a joint venture agreement with
         Earth Safe Technology, Inc. to market products manufactured for Summit
         by BioGenesis pursuant to Summit's patent ownership in Mexico.

         In February 2002, Summit entered into a distribution agreement with
         Tianyang Group for the sale of products manufactured by Summit. These
         products are to be sold to Tianyang for production and resale in the
         Peoples Republic of China.

         On February 6, 2002, Summit executed a Distribution Agreement with
         614575 Alberta Limited of Calgary, Alberta, Canada. Alberta Limited
         manufactures a series of home fire extinguishing systems which feature
         FlameOut(R) as part of each system.




                                       10
<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 - SECOND QUARTER OF 2002 COMPARED TO SECOND
QUARTER OF 2001

         Summit Environmental's sales for Q2 2002 were 127.2 percent of Q2 2001
- $24,688 in Q2 2002 compared to $19,411 in Q2 2001. Gross margin was 49.8
percent for Q2 2002 compared to 56.3 percent for Q2 2001. Sales have not reached
a level to generate consistent gross margin percentages.

         Operating expenses dropped 17.7 percent during Q2 2002 over Q2 2001.
Operating expenses decreased by $38,926 from $220,016 in Q2 2001 to $181,090 in
Q2 2002.

         Amortization and depreciation were $43,389 in Q2 2002 and $45,867 in Q2
2001.

         Summit had a net loss from operations of $168,802 for Q2 2002, down
from a net loss of $209,085 for Q2 2001, a $40,283 or a 19.3 percent decrease.

       RESULTS OF OPERATIONS - FIRST TWO QUARTERS OF 2002 COMPARED TO FIRST TWO
QUARTERS OF 2001

       Sales from operations were $66,337 for the first two quarters of 2002
compared to sales of $62,393 for the first two quarters of 2001, a 6.3 percent
increase. Gross margin on these sales was 73.3 percent in the first two quarters
of 2002 and 30.2 percent in the first two quarters of 2001.

       Operating expenses were down to $385,246 for the first two quarters of
2002 compared to $491,966 for the first two quarters of 2001, a reduction of
$106,720 or 21.7 percent. Office expenses were down considerably in 2002, $6,180
versus $15,464 in 2001. Travel and entertainment costs were down also to $15,929
in 2002 versus $20,571 in 2001.

       We experienced a net loss of $329,579 in the first two quarters of 2002,
down 27.8 percent from the $456,293 loss of the first two quarters of 2001. The
loss per share of common stock was $0.02 for the first two quarters of 2002
versus $0.04 for the same period of 2001.

       Some balance sheet items that reflect significant changes from December
31, 2001 to June 30, 2002 are: cash, down to $187,612 from $193,806, accounts
receivable, up to $151,518 from $137,460, inventory, down to $767,497 from
$769,644, and accounts payable, up to $537,059 from $33,989.

       The net loss of $329,579 in the first two quarters of 2002 was financed
in part by $280,000 in proceeds of sale of 658,900 shares of common stock and
partly from $87,047 in amortization and depreciation.



                                       11

<PAGE>

         OVERVIEW

         During 2001, the company finalized distribution agreements and product
certifications which had been ongoing. This remained in conjunction with our
vision to market Summit's products through strategic alliances. Of special note,
new international agreements were executed for Mexico, China, Scandinavia and
Canada.

         In Mexico, a joint venture agreement between Summit and Earth Safe
Technologies will sell FLAMEOUT(R) FOAM and several of our remediation products.
The primary customer for the joint venture will be Pemex, the national oil
company of Mexico. FLAMEOUT(R) FOAM was approved by Pemex as an acceptable
replacement for 3M's AFFF. Numerous contaminated sites from oil field production
will become projects for water and soil remediations. Management negotiated an
exclusive marketing arrangement with Dr. Mohsen Amiran for bioremediation
technology. Products and application procedures have been submitted through
Earth Safe Technologies to Pemex for approval for remediation project purchase
orders. Orders for FlameOut(R) Foam and remediation projects are expected by 4th
quarter 2002.

         In China, the Tianfa Corporation and the Tianyang Group became the
master distributor for FLAMEOUT(R). We agreed to assist and advise in the
manufacturing of aerosol cans utilizing FLAMEOUT(R), producing a product similar
to FIREPOWER 911(TM). In the terms of the agreement, the company will receive a
5% royalty from the wholesale sale of each can produced. Keith Parker, CEO of
Summit, has been invited to join the United States Chamber of Commerce Ninetieth
Anniversary trade delegation to China. Twelve CEO's of American businesses have
been nominated by US Congressmen to participate in the eleven day tour. The tour
will focus on meetings with potential Chinese Business partners in three
provinces as well as Hong Kong. The company will be looking for strategic
alliance partners for all of the company's products. The first year agreement
requires the purchase of three container loads of FlameOut(R). This will provide
enough product to fill 500,000 aerosol cans. Should the required purchases not
be made, the agreement reverts to a non-exclusive distributor agreement.

         In Scandinavia, Tecno Supplies began selling FIREPOWER 911(TM) in
February 2001. FLAMEOUT(R) was utilized in initial tests with the Norwegian Air
Force and Exxon of Norway for the purpose of replacing 3M's AFFF. Several orders
have gone to Tecno during 1st and 2nd quarter 2002. Summit has filled first-time
orders for FlameOut(R) Foam, fire retardants and odor block products in addition
to FlameOut(R) and FirePower 911(TM) during the 2nd quarter.

         In Canada, Summit and 614575 Alberta Limited, which changed its dba to
Just-In Case Fire Ltd., executed an agreement for the selling of FLAMEOUT(R) for
resale in portable and mobile fire extinguishing systems for home and remote
property respectively. We granted to Just-In Case Fire Ltd the exclusive right
to repackage FlameOut(R) for systems manufactured by Just-In Case Fire Ltd. For
the granting of this exclusivity, we receive a royalty from each unit sold.
There have been several orders placed by Just-In Case Fire Ltd which began
manufacturing the "Fire Caddy" in June 2002. Just-In Case Fire calculated the
first royalties payable to Summit at end of Quarter 2 which have been recorded
in the financials. Just-In Case Fire delivered its first shipment of FlameOut(R)
sold to a fire department in Alberta, Canada, in June 2002. (see Photo Album on
website.) Just-In Case Fire has recently started marketing FirePower 911(TM) in
Canada.




                                       12
<PAGE>


         With regard to our one-of-a-kind portable aerosol fire extinguisher,
FirePower 911(TM), management has held fast to the theme of establishing a sound
retail pricing structure . Very early, we were successful in getting FIREPOWER
911(TM) approved by Wal-Mart on a regional basis, first, and then elevated to
full category status. Existing purchase orders were in hand.

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

         We set out to place FIREPOWER 911(TM) into a retail environment where
pricing was not an issue to iTs success. When initial sales were made to grocery
supply companies, grocery stores and convenience stores, there was no effective
marketing/merchandising follow-up network in place to facilitate the in-store
service requirement held by the large store chains across the country. The
existing agreement with Convenience Service Group did not meet the criteria and
was terminated in order that we 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. In February, 2002, Lowe's Home Improvement Centers
scheduled FIREPOWER 911(TM) for an in and out sale test markets scheduled for
June and October 2002. Approximately (150-200) selected Lowe's locations are
scheduled to conduct this test market in conjunction with the National Fire
Prevention Month. We were not given sufficient time to fulfill the orders for
June, therefore management requested a stop on process. October was considered
the next optimal date. Triple-S has been notified that we are not necessarily
ready to proceed at this point due to a new direction for FirePower 911(TM)
which will be discussed below with regards to Reliant Interactive Media and a
nationally recognized celebrity endorsement. Triple-S has notified management of
a scheduled appointment at Lowe's National Headquarters on September 5, 2002,
for the purpose of carrying the company's absorbent product Ultimate Absorb(TM)
1103 (discussed further herein).

         One week before meeting with Reliant, management met with QVC at its
headquarters in Pennsylvania. FIREPOWER 911(TM) was approved for programming. We
have been in the process of satisfying the Quality Assurance requirements at QVC
for over 2 years. The anticipated start date of April 2002 was delayed due to
the new shipping requirements at QVC since September 11, 2001. We provided three
years of UPS shipping documents for the purpose of establishing Summit as a
drop-ship vendor. Management has informed Reliant of the necessity of taking
FirePower 911(TM) to Home Shopping Network should final approval and airing
occur in the very near future.




                                       13
<PAGE>

         In March 2002, we met with Reliant Interactive Media Group for the
purpose of representing Summit's FirePower 911(TM) product at QVC or Home
Shopping Network International. Reliant founders Kevin and Tim Harrington have a
fifteen year plus expertise in direct television shopping in both home shopping
and infomercial venues. Reliant merged with Thane Distribution Group during 2nd
quarter 2002. Therefore, our agreements have been executed with Thane.
Reliant/Thane represents such notables as Bruce Jenner, Kathy Smith and Tony
Little. Summit and Reliant/Thane have agreed to place our products in the
shopping channel venues of QVC or HSN and the development of 30-minute
infomercial for FIREPOWER 911(TM).

         With the successful execution of a production agreement for television
and the establishment of FirePower 911(TM) as the only validated and rated fire
extinguisher in an aerosol can in the world, management set out to obtain the
endorsement of a nationally recognized celebrity to promote FirePower 911(TM) in
all venues of marketing. During June, contracts were initiated and at the end of
July 2002, management negotiated and successfully reached terms with the agents
and attorneys establishing George Foreman as the official company spokesperson
and endorsing agent for FirePower 911(TM). The agreement was executed by all
parties on July 30, 2002.

         In November 2001, we executed a distributorship agreement with a direct
sales company, Lighthouse America. Lighthouse, dba Teamfire, previously sold a
non-rated fire extinguishing product as a fire extinguisher. This resulted in
regulatory enforcement action which halted Lighthouse's activity. When FIREPOWER
911(TM) was discovered by Lighthouse, an agreement was negotiated. FIREPOWER
911(TM) is the only rated and validated fire extinguisher in an aerosol can in
the marketplace. Teamfire began introducing FIREPOWER 911(TM) to its base of
7000 dealers. We also receive a royalty on the sale of all FIREPOWER 911(TM)
sold by Teamfire. Second and third orders were received by us during the first
quarter 2002. Receivable royalties were also paid.

         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 sold to the public by the local fire departments in Chile. Summit and
Marketing Perspectives Incorporated ("MPI") satisfied the label requirements and
insurance requests for completed product liability coverage. The second order
was anticipated as early as August 2001, according to information supplied to
Summit by MPI. The FIREPOWER 911(TM) approval was delayed. However, in December
2001, the anticipated approval was received. MPI provided to us in January 2002
the official Chilean government approval for FIREPOWER 911(TM) for both Class A
and B fires. These tests were conducted at the University of Chile. The approval
certificates can be seen on our website. The first use of "FIREPOWER LIQUIDO
911(TM)" will be for the federal police (Carabineros) as part of their equipment
belt as a tool for riot control due to such occurrences as fire bombs being
thrown into crowds at large public events such as soccer matches. On August 6,
2002, the company received copies of technical reports conducted by IDIEM,
completing the final material and investigation tests on FlameOut(R) (FirePower
911(TM) contents) for toxicity and biodegradability. The reports came from the
Chief of the Technical Department of Fire Prevention. These tests were conducted
on paper, cartons, fabric, wax, gasoline 4, kerosene, plastics, carpet, wood and
tires. Final conclusion: easily handles fire, leaves no residue and has no
effect on the ozone.



                                       14

<PAGE>

         Our strategic alliance partner, International Aero, Inc., is the
world's largest reconfiguration company for commercial aircraft. Summit 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. During 2000, the actual Gross Volume Production Tests of FLAMEOUT(R)
on jet fuel and heptane were conducted. The initial performance tests were
conducted at International Aero's new licensed fire testing facility, during
2001. In December 2001, the FAA and US DOT published the final draft of products
approved as a replacement for Halon. FLAMEOUT(R) has been placed on the list of
approved replacements.

         International Aero's distribution rights extends 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 known as a possible cancer-causing agent.
Summit's intent with International Aero is to develop a non-toxic,
non-corrosive, biodegradable alternative for AFFF. FLAMEOUT FOAM(TM) was tested
at the Ansul fire test facility in Marinette, Wisconsin in April 2000. The foam
stability test was very successful. FLAMEOUT FOAM(TM) was the only product
tested to pass the UL162 encapsulation and emulsification test. FLAMEOUT FOAM(R)
has been approved as a replacement for 3M's AFFF by Pemex in Mexico. In Poland,
FlameOut Foam(TM) has been listed by the National Institute of Hygiene. We began
tests in April with the United States Air Force for the purpose of obtaining a
military specification number for military approval to replace AFFF. Due to
severe environmental problems and large fines, 3M exited the AFFF market in
December 2001. The void created has opened a whole new field for replacement
products for AFFF. Now that the toxic issues surrounding AFFF are out in the
open, the non-toxic, biodegradable features of FLAMEOUT FOAM(R) are placing the
product as a frontrunner for solutions all over the globe.

         During April 2002, management was contacted by the Underwriting
Department at Bituminous Insurance Company. Bituminous has been a specialty
property insurer in such fields as oil and gas exploration, mining and logging
and timber production industries. When considering all of the features of
FlameOut(R), Bituminous felt that the presence of FlameOut(R) in the systems on
specialty logging equipment, fire extinguishers containing FlameOut(R) and
FirePower 911(TM) would augment their idea for new loss control features. New
underwriting guidelines adopted at Bituminous in June 2002, notified current
insureds that failure to implement the fire prevention measures would lead to
non-renewal of coverage in the event of a loss. All new applications require
FlameOut(R), FirePower 911(TM) and fire suppression systems as part of
consideration for underwriting. Summit reached a multiphase agreement with
Bituminous which would help Summit market FlameOut(R) and FirePower 911(TM) and
Bituminous reduce losses. Bituminous mailed FlameOut(R), FirePower 911(TM) and
videos showing the products work beginning June 2002. Summit agreed to establish
dealers in the Bituminous marketing areas. The obvious and ideal situation would
be to establish marketing through the Bituminous Casualty Insurance Agencies
which already have the captioned customer base within the prospective agencies.
As of the




                                       15

<PAGE>

middle of July 2002, the company had reached agreements with agencies for
marketing in Texas, Oklahoma, Arkansas, Louisiana, Mississippi, Alabama,
Georgia, Tennessee, Virginia, West Virginia, North Carolina, South Carolina,
Minnesota and Wisconsin. The first orders were received by the company the end
of July 2002.

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

         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 our
potential market by another 50 percent from the original projections based on
International Aero's customer base.

         Also incorporated into the test of Ultimate Clean 668(TM) 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.

          All parties concede that this testing process has been very tedious
and time-consuming. The reward for us will be a head start in the market.
Regardless of the unknowns with which we have dealt, Ultimate Clean 668(TM) has
not experienced setbacks which prevent the direction of moving closer to an
expected final Quality Products Listing. 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 areas of
complication for approval stem from the fact that ULTIMATE CLEAN 668(TM) is an
aqueous based product. The test protocol, which is 50 years old, was originally
designed for petrochemical products. We are still committed, as is BioGenesis,
to the completion of the test protocol. The successful completion means large
numbers of sales for us due to our marketing alliance with International Aero,
Inc. The test to satisfy final requirements are still in process. A meeting
among management, the laboratory and BioGenesis will take place during 3rd
quarter 2002 for the purpose of establishing some median ground for the tests.
While all parties agree that the cleaning capabilities of 668 are superior to
other products,




                                       16

<PAGE>

the physical characteristics of organic compounds in the 668 formulation are
giving what is believed to be false readings in Anatomic Spectrometer tests.
Management is focused on completing this protocol and is scheduling a visit to
the laboratory during August-September 2002.

         Through South American alliance partner MPI, we submitted material,
product, and previous certifications to the authorities in Brazil and Argentina
in order to obtain the appropriate approvals and ratings for sale in the
Mercosur area of South America. The existing certifications on FLAMEOUT(R) have
been accepted. In Brazil during fourth quarter 2001, FLAMEOUT(R) passed some
very critical Class B tests. We introduced FLAMEOUT FOAM(R) into Brazil through
MPI due to the elimination of the availability and 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. The
approval process will also be accepted in the other Mercosur Pact
countries--Argentina, Uruguay and Paraguay. Summit and MPI have entered into a
Joint Venture Agreement to produce FLAMEOUT(R) and FlameOut Foam(R) in South
America. In order to fill product orders for government contracts, offices,
installations and airports, the product must be produced within the Mercosur.
Summit and MPI are in the process of producing the first production run of
FLAMEOUT(R) AND FLAMEOUT FOAM(R). Tests will be conducted on the South American
produced FLAMEOUT(R) AND FLAMEOUT FOAM(R) in order to verify its performance
against the standard already established by the completed tests of FLAMEOUT(R)
and FlameOut Foam(R) shipped to Brazil in 2001.

         During the third 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 due to in house testing of the application of these
products. Our product - 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. We received four of the twelve
selected colors in August 2001 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 the beginning, we 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 as well as the Miss America Pageant.
Stacy was in the top twenty and Jessie was a top ten finalist in the Miss
America Pageant.

         Pageants have been held every weekend from October 1, 2001, through
July, 2002. There were over 50,000 contestants introduced to - and many used -
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.lusciouslips.cc and www.pannachelusciouslips.com. With Jessie Ward's reign
as Miss Arkansas



                                       17

<PAGE>

ending in July 2002, she will be joining the staff of Pannache in August. Her
first appearance will be at the International Congress of Esthetics Southwest in
Dallas, August 24-26, 2002.

         The initially established dealer network attained a closing ratio of
close to 100%. When purchasing the initial inventory for a dealer, a dealer
purchases at 50% off of retail and makes 100% profit on resale. Our margin is at
106%. The direct sales test market directed to drill teams and cheerleading
groups produced a 100% closing ratio. Pannache became an associate member of the
Texas High School Dance and Drill Teams Association, whose state convention was
held in Houston, Texas, January 3-5, 2002. Over 100 high schools requested
appointments for presentations for product use for the team and our concept of
using Luscious Lips as its fund raising product. 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. August of 2002 will see targeted fund raising programs especially
designed for these groups. The initial dealer locations are throughout Northeast
Texas, Arkansas, Missouri, and Georgia.

         The success of the test markets indicated to us that expanding the
marketing toward performing groups and through direct distributors and direct
response television would 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).

         We successfully negotiated with Lady Burd Exclusive Private Label
Cosmetics for the ownership of the patent and property rights for the product
Luscious Lips. Luscious Lips was developed at Lady Burd by Dr. Alex Hammer. Dr.
Hammer is noted for co-authoring the Food and Drug Administration Cosmetic
Manual. Dr. Hammer spent over 20 years at Estee Lauder before coming to Lady
Burd.

         The cosmetic industry is a $300 billion industry worldwide 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.

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

         As a result of Summit's and Lady Burd's previous successful
negotiations for the patent rights to Luscious Lips, Lady Burd appointed Summit
as the exclusive distributor for all of Lady Burd's products (over 100) within
the area formerly served by the Dallas, Texas Apparel Mart Showroom. The show
room inventory was moved to our new headquarters in April 2002. The first
official day of business was May 1, 2002. The assignment of the distributorship
to Summit by Lady Burd provided a 3500 Lady Burd customers' list. We have moved
to a new location where showroom facilities are now provided. The new showroom
staff called, mailed, and established contact with about 100 of these customers
during the months of June and July. Distributors have been established in North
Carolina, Mississippi, California and Florida. A new direct sales company began
selling products under a private label in June 2002.



                                       18

<PAGE>

         Lady Burd has chosen to use the International Congress of Esthetics
Southwest, August 24-26, 2002, as the introductory show for the new Lady Burd
fall line. Our marketing venue will be the first representation for all
products. The sales and new customers from the show become sales and customers
of Summit.

         OUTLOOK

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

         We believe that, due to the approval, listing and rating of FIREPOWER
911(TM) as a fire extinguisher, a niche market has been created. This was
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 and most recently, the office of the State Fire
Marshal of Texas.

         The formula for FIREPOWER 911(TM), 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 the company that its 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 our FIREPOWER 911(TM) had satisfied their fire code
requirements.

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



                                       19

<PAGE>

         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 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 FirePower 911(TM).

         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. The Texas State Fire Marshal's office
has been instrumental in enforcing the regulations with regards to NFPA 10, the
required standard for portable fire extinguishers. These regulatory actions on
copycat products of FIREPOWER 911(TM) have seen several products removed from
the shelves of retailers and from programming on shopping channels. We have been
working with several product rep groups making presentations into several of the
large mass merchandisers. With the approval of FIREPOWER 911(TM) for an "in and
out" test market at Lowe's, for airing on QVC or HSN through Thane Distribution
Group and a 30 minute infomercial, Summit feels that it has successfully neared
the end of the education curve with regard to aerosols. During 2nd quarter 2002,
we initiated the last phase for a complete marketing program for FirePower
911(TM). The successful negotiation with George Foreman has positioned FirePower
911(TM) to become what the company believes to be a household name through the
planned promotion.

         Presenting the information in this format last year and prior to the
negotiation of the Foreman initiative, we negotiated an agreement with a
national marketing and merchandising company, Triple S Marketing, that places
the products they represent into two of the largest home building products
stores in the country. The senior buyer for one of these chains of stores has
approved FIREPOWER 911(TM). We also sold through one of its distributors
FirePower 911(TM) which was placed in Home Depot for test sales in June 2002.


                                       20
<PAGE>

         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 911(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.

         We have executed an agreement for the sale of FIREPOWER 911(TM) with
Lighthouse America and its direct sales company TEAMFIRE. TEAMFIRE previously
had 7,000 direct dealers selling a non-rated portable fire product that was
classified as a portable fire extinguisher by State Fire Marshals. TEAMFIRE's
selling efforts were halted due to Fire Marshal regulatory citations. TEAMFIRE
has a great appreciation for FIREPOWER 911(TM) because of its 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 from January through
August, 2000. The first shipment of product to Lighthouse occurred in November,
2001. Additional shipments occurred during February, 2002.

         We have been in negotiations since October 2000 with QVC for the sale
of FIREPOWER 911(TM). FIREPOWER 911(TM)'s front runner, Chief's Choice (private
label FIREPOWER 911(TM)), was the initial aerosol fire suppressant sold on QVC.
Chief's Choice received the QVC award for Best of the Quest. 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 by our management. Another "copycat" product was
substituted 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 had
cleared these issues, scheduling for 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. This letter is available under the "Standards and Certifications"
directory item on our website. In March 2002, management met with the buyers at
QVC and received initial programming approval. The next week, management met
with marketing representatives from Reliant Interactive Media and Thane
Distribution Group. We entered into an agreement with Thane for the purpose of
placing FIREPOWER 911(TM) on QVC or HSN, producing a 30 minute infomercial for
FIREPOWER 911(TM) and the approval of three of the cosmetic products from the
our Pannache/Luscious Cosmetics division which will be discussed later.
Currently, we are going through the quality assurance process of product
preparation for marketing at QVC. Initial product airings were expected as early
as July 2002. With the product validation issues settled establishing FirePower
911(TM) as the only validated and rated fire extinguisher in an aerosol can in
the world,




                                       21

<PAGE>

marketing venues, such as QVC, Reliant Interactive Media and large mass
merchandisers previously mentioned, were the next foundational step for this
establishment of the marketing of FirePower 911(TM). We knew with these two key
ingredients in place, the only remaining aspect to complete a total marketing
package was to secure a known personality for the purpose of being the
spokesperson in the infomercial on home shopping channels and for retail point
of purchase displays.

         In June 2002, management met with George Foreman, Jr. for the purpose
of demonstrating and proposing an arrangement for George , Jr. to present
FirePower 911(TM) to his father, George Foreman. The proposal was that of George
Foreman becoming the spokesperson for FirePower 911(TM). Summit was put in
contact with the agents representing George Foreman, and on July 30, 2002, an
agreement was executed.

         George Foreman will appear in the soon-to-be-produced FirePower 911(TM)
infomercial produced by Kevin and Tim Harrington at Reliant Interactive
Media/Thane Distribution Group, doing promotional spots for home shopping
channels and be part of the retail advertising program for FirePower 911(TM).

         FLAMEOUT(R) was 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 continues
for eighteen months. The Forestry Service requested and we supplied the actual
test product in order to complete the protocol in June 2001. Through our
Canadian Strategic Alliance Partner, Mark Hayes dba Just-In Case Fire Ltd., the
aerial fire fighting company Pro Air, Northern Air Response and the Canadian
Forestry Service are following the U.S. Forestry Service's test. Feedback is
that FLAMEOUT(R) is performing very favorably. The reports received by us are
that the Canadian Forestry will accept the U.S. Forestry approval for immediate
sales in Canada. We have been notified of pending orders at Pro Air and Northern
Air Response.

         FLAMEOUT(R) will be tested as a wetting agent and fire suppression
foam. When approved, FLAMEOUT(R) can be used in the catastrophic wildfires that
occur every year. FlameOut(R), in unofficial tests, has outperformed every
product with which it has been compared. Management knows this first-hand from
conducting fire tests or being on the actual fire lines in Florida (Summer
1998), Civil Defense and Civil Air Patrols tests in Springfield, Massachusetts
(1999), foam stability tests at NFPA 18 Task Force Meeting at Ansul Fire Test
Facility (2000), Louisiana State University for Training Academy (1996) and
Federal Aviation Agency Tests and International Aero (ongoing). The twelve-month
product stability test for the Forestry Service protocol concludes in June 2002.
Once concluded, the remaining testing revolves around (1) combustion retarding
effectiveness, (2) optimum mixing, (3) pumpability, (4) abrasion, (5) field
visibility, and (6) operational field evaluation. We have been notified that
projected approval will be completed by October 2002.

         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. Summit assisted its distributor partners
with necessary testing, listing, ratings and certifications in order to complete
the registration process in each of these countries.



                                       22
<PAGE>

         FLAMEOUT(R) was submitted for official testing in Warsaw, Poland to the
National Institute of Hygiene. 3M announced mid-year 2001 that it was
withdrawing from the AFFF market. AFFF is a very toxic product and exposure can
cause cancer. Summit's product will undergo official testing in Europe for
certification as an approved replacement for 3M's AFFF.

         During December 2001, FLAMEOUT(R) FOAM was submitted to the laboratory
officials at Pemex, the national oil company of Mexico. In January 2002, we
received copies of the official approvals for FLAMEOUT(R) FOAM for the purpose
of replacing AFFF at Pemex. FlameOut(R) Foam is currently undergoing military
specification tests with the United States Air Force to be listed as an approved
replacement for AFFF.

         In 2001, we began discussions with a Canadian company for the purpose
of using FLAMEOUT(R) exclusively in their gasoline and battery generated home
fire extinguishing systems, The Fire Caddy, can be seen on our website under the
photo album. The agreement with Just-In Case Fire Ltd. allows for the placement
of 5 gallons of FLAMEOUT(R) within each unit sold and an additional 5 gallons of
FLAMEOUT(R) as back-up to be sold with each Fire Caddy. The agreement between
Summit and Just-In Case Fire allows the wholesale purchase of FLAMEOUT(R) for
the Fire Caddy System. By virtue of the exclusive arrangement between us and
Just-In Case Fire, we receive royalties on the sale of each of the Fire Caddy
units. First royalties were earned during 2nd quarter 2002. Orders from Just-In
Case Fire doubled in July over orders received in June 2002.

         In China, Summit and The Tianfa Corporation and The Tianyang Group
executed an agreement for the sale of FLAMEOUT(R) and technical assistance for
canning aerosol can fire extinguishers. Tianfa Corporation is China's leading
energy company and is listed as a Class A Stock on the Shanghai Stock Exchange.
The agreement allows Tianfa/Tianyang to purchase FLAMEOUT(R) at wholesale and
then repackage FLAMEOUT(R) in aerosol cans in China, manufacturing a product
similar to FIREPOWER 911(TM). We will in turn receive a 5% royalty on all
wholesale sales of aerosol cans.

         During February 2000, we sold our first order of FIREPOWER 911(TM) to
our Scandinavian distributor, Tecno-Supplies, in Norway. In April 2001,
Tecno-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. Currently, we are preparing to supply documentation and product for
FLAMEOUT(R) approval in the North Sea. During June 2002, Tecno added the new
FlameOut(R) Foam, the company's granular fire retardant FR-4, and Ultimate Odor
Block(TM) to its latest order from the Company.

         Summit's test for securing the military specification number
MIL-PRF-85704C, which will enable 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 and III concentrates and Type II
ready-to-use. The testing for this non-corrosive product 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
expansion 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




                                       23
<PAGE>

2001. While awaiting a slotting appointment for the completion of the physical
application test in cleaning test engines, we are finalizing the stability and
blending requirements. 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 product formulation being made from organic compounds is creating -
in management's and BioGenesis' minds - false readings for elemental content for
salts on the anatomic spectrometer test for elemental content. Keith Parker,
John Brooks, and Mohsen Amiran are planning a trip to visit the testing facility
in 3rd quarter 2002. Dr. Amiran feels that the organic nature of the formula is
causing unidentifiable readings. The group will travel to the lab with all the
ingredients to the formula in separate containers. There they will observe the
testing of each individually. Next, product will be mixed to form the
concentrate and test again. Then, dilution of the concentrate to make the "ready
to use" version and testing will be done in anticipation of either the company
or the laboratory developing an understanding of applying an organic compound to
a chemically designed test protocol. Management and all parties concerned are
dedicated to the completion of the process.

         Our development of ULTIMATE ABSORB 1103(TM) has led to our 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 meets or exceeds the requirements for 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 Ultimate Absorb 1103(TM) had successfully
passed protocol for 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. Management has met
and is in negotiations with a large, well established supplier of absorbents.
The negotiations couple Summit's ULTIMATE ABSORB 1103(TM) with an already
established product with national distribution in place at major retailers. The
agreement is currently being negotiated between both parties and details will be
announced, if completed, during May 2002. Summit management has been scheduled
for line item presentation for Ultimate Absorb(TM) 1103 at Lowe's national
headquarters on September 5, 2002.

         Pannache/Luscious Cosmetics has successfully established test markets
for direct dealer sales and competition group sales, two very high volume
markets. Both test markets demonstrated nearly 100% closing ratios. The profit
margins are greater than any of our other products whether sold wholesale or
direct to the consumer. We have executed an exclusive distribution agreement
with Lady Burd Exclusive Private Label Cosmetics. The Dallas Apparel Mart
Showroom for Lady Burd has been closed. Product and over 3500 customers were
transferred to our new offices which opened May 1, 2002. Sales personnel have
been added in the home office, Dallas, Houston, Sacramento, California, Little
Rock, Arkansas and Boca Raton, Florida, in an effort to begin selling over 100
products in the Lady Burd line now being Private Labeled by Pannache. During May
and June approximately 100 new customers were contacted and sold products from
the new acquisition.



                                       24

<PAGE>

         The new innovative fund raising program featuring Luscious Lips was
kicked off in January selling Luscious Lips through high school drill teams,
cheerleading groups and twirling groups. After attending the Texas Association
of High School Drill Team and Dance Teams we received over 100 high schools
prequalified for both product purchase for their dance team and sales as their
fund raiser. International expansion is also anticipated from trade shows during
2002 which will include Dallas, Italy, Hong Kong and Canada. The International
Congress of Esthetics Southwest show August 24-26, 2002 will feature the
introduction of the new line of Lady Burd Cosmetics for Fall 2002. All sales,
customers and distributors from this show will become Summit customers.

         Plans for a 60-second or 120-second info-commercial were put in motion
for Luscious Lips during fourth quarter 2001. In January, Pannache and Thane
Distribution Group executed an agreement for Luscious Lips for infomercial
sales. Also, two additional products from the Pannache/Luscious Cosmetics line
have been approved for airing on QVC. The Luscious Dust Brush and Vol-lip-tuous
are currently undergoing dermatological tests and microbial assay testing
requirements for QVC before final programming approval. Tests will be completed
in August 2002. The company anticipates the products being aired in time to
capture the Christmas gift market.

         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: our inability 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 our 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.*



                                       25
<PAGE>

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

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

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

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

      10.8    -     Asset Purchase Agreement between Lady Burd Exclusive
                    Cosmetics, Inc. and Summit Environmental Corporation, Inc.
                    dated February 2002****

      10.9    -     Distributor Agreement between Lady Burd Exclusive Cosmetics,
                    Inc. and Summit Environmental Corp. Inc. dated May 1,
                    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.

(b)    FORMS 8-K

       None



                                       26
<PAGE>

                                   SIGNATURES

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

Date:  August 19, 2002              Summit Environmental Corporation, Inc.



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




                                       27
<PAGE>


                            CERTIFICATION PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
                            (18 U.S.C. SECTION 1350)


         In connection with the accompanying Quarterly Report of Summit
Environmental Corporation, Inc., (the "Company") on Form 10-QSB for the period
ended June 30, 2002 (the "Report"), I, B. Keith Parker, Chief Executive Officer
of the Company, hereby certify that to my knowledge:

         (1) The Report fully complies with the requirements of Section 13(a) or
15(d) of the Securities Exchange Act of 1934 (15 U.S.C. Section 78m or Section
78o(d)); and

         (2) The information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.



Dated:  August 19, 2002                   /s/ B. Keith Parker
                                         ---------------------------------------
                                         B. Keith Parker
                                         Chairman and Chief Executive Officer


         The above certification is furnished solely pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350) and is not being filed
as part of the Form 10-Q or as a separate disclosure document.




                                       28
<PAGE>


                            CERTIFICATION PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
                            (18 U.S.C. SECTION 1350)


         In connection with the accompanying Quarterly Report of Summit
Environmental Corporation, Inc., (the "Company") on Form 10-QSB for the period
ended June 30, 2002 (the "Report"), I, Chris Dellinges, Chief Financial Officer
of the Company, hereby certify that to my knowledge:

         (1) The Report fully complies with the requirements of Section 13(a) or
15(d) of the Securities Exchange Act of 1934 (15 U.S.C. Section 78m or Section
78o(d)); and

         (2) The information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.



Dated:  August 16, 2002                 /s/ Chris Dellinges
                                        ----------------------------------------
                                        Chris Dellinges
                                        Chief Financial Officer


         The above certification is furnished solely pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350) and is not being filed
as part of the Form 10-Q or as a separate disclosure document.



                                       29