Amanasu Environment Corporation
Forward Looking Statements
This report and other reports filed by our Company from time to time with the
United States Securities and Exchange Commission (collectively the "Filings")
contain or may contain forward-looking statements and information that are based
upon beliefs of, and information currently available to, our management as well
as estimates and assumptions made by our management. Readers are cautioned not
to place undue reliance on these forward-looking statements, which are only
predictions and speak only as of the date hereof. When used in the filings, the
words "anticipate," "believe," "estimate," "expect," "future," "intend," "plan,"
or the negative of these terms and similar expressions as they relate to us or
our management identify forward-looking statements. Such statements reflect our
current view with respect to future events and are subject to risks,
uncertainties, assumptions, and other factors, including those set forth in the
Risk Factors on page 7. Should one or more of these risks or uncertainties
materialize, or should the underlying assumptions prove incorrect, actual
results may differ significantly from those anticipated, believed, estimated,
expected, intended, or planned.
Although we believe that the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results, levels of
activity, performance, or achievements. Except, as required by applicable law,
including the securities laws of the United States, we do not intend to update
any of the forward-looking statements to conform these statements to actual
results.
Our financial statements are prepared in accordance with accounting principles
generally accepted in the United States ("GAAP"). These accounting principles
require us to make certain estimates, judgments and assumptions. We believe that
the estimates, judgments and assumptions upon which we rely are reasonable based
upon information available to us at the time that these estimates, judgments and
assumptions are made. These estimates, judgments and assumptions can affect the
reported amounts of assets and liabilities as of the date of the financial
statements as well as the reported amounts of revenues and expenses during the
periods presented. Our financial statements would be affected to the extent
there are material differences between these estimates and actual results. In
many cases, the accounting treatment of a particular transaction is specifically
dictated by GAAP and does not require management's judgment in its application.
There are also areas in which management's judgment in selecting any available
alternative would not produce a materially different result. The following
discussion should be read in conjunction with our consolidated financial
statements and notes thereto appearing elsewhere in this report.
Please note the consolidated financial statements for the fiscal years ending
December 31, 2020 and 2019 have been prepared assuming that the Company will
continue as a going concern. As shown in the consolidated financial statements
the Company had a working capital deficiency of $708,843 as well as an
accumulated deficit of $5,539,235 at December 31, 2020. These factors, among
other things, raise substantial doubt about its ability to continue as a going
concern. The consolidated financial statements do not include any adjustments
relating to the recoverability and classification of recorded asset amounts or
the amounts or classification of liabilities that might be necessary should the
Company be unable to continue in operation.
General
Management's discussion and analysis of results of operations and financial
condition is intended to assist the reader in the understanding and assessment
of significant changes and trends related to the results of operations and
financial position of the Company together with its subsidiary. This discussion
and analysis should be read in conjunction with the consolidated financial
statements and accompanying financial notes, and with the Critical Accounting
Policies noted below.
Plan of Operation
The Company has three main objectives during the fiscal year ending December 31,
2021. Firstly, the Company will continue in its goal to meet the capital
objective of $30,000,000. Currently the company is exploring various potential
investment partners in Japan, as well as China. The Company cannot predict
whether it will be successful with its objective.
Second the Company will continue to support Amanasu Maritek Corporation's
efforts on entering into marine technologies. The Company will continue to
assist in the design, and approval process for the product from at least two
regulatory bodies: the Japanese Government, and the IMO (International Marine
Organization). This approval process requires capital for additional product
testing, documentation, and documentation translations. The Company believes
that Amanasu Maritek Corporation's most significant hurdle will be in capital
raising. The
Company has already initiated documentation and application processes and is now
looking for capital to fund the project. The Company cannot predict whether it
will be successful with its capital raising efforts.
Third, the Company is making plans to enter the reforestation industry in Japan,
through Amanasu Maritek Corporation. The Company must first reach an agreement
with the relevant government agencies in Japan. The Company intends to focus on
the prefectures of Miyagi, Iwate and Niigata and begin operations within two
years. The Company cannot predict whether it will be successful with its
objective.
10
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (continued)
Results of Operations
There were no revenues for the years ended December 31, 2020 and 2019.
General and administrative expenses decreased $2,690 (4.1%) to $62,812 for the
year ended December 31, 2020 as compared to $65,502 for the year ended December
31, 2019, primarily as a result of lower travel expenses offset partially by
higher entertainment expenses.
Interest expense - stockholders and officers increased $636 to $20,002 for the
year ended December 31, 2020 as compared to $19,366 for the year ended December
31, 2019 as a result of the increase in loans from stockholders and officers.
As a result of the above the Company incurred net losses of $82,814 and $84,868,
respectively, for the years ended December 31, 2020 and 2019.
Liquidity and Capital Resources
Total current assets at December 31, 2020 was $47 compared to $24,720 at
December 31, 2019. The decrease is primarily due to the lower amounts due from
affiliates.
Total current liabilities as of December 31, 2020 were $708,890 compared to
$653,222 at December 31, 2019. The increase is primarily due to increases in
accrued expenses - related parties and accrued interest.
The Company's minimum cash requirements for the next twelve months are estimated
to be $60,000, including rent, audit and professional fees. The Company does not
have sufficient cash on hand to support its overhead for the next twelve months
and there are no material commitments for capital at this time other than as
described above. The Company will need to acquire debt or issue and sell shares
to gain capital for operations or arrange for additional shareholder or related
party loans. There is no current commitment for either of these fund sources.
During the year ended December 31, 2020, the Company had a net decrease in cash
of $164. The Company's principal sources and uses of funds were as follows:
Cash used in operating activities. For the year ended December 31, 2020, the
Company used $39,541 in cash for operating activities as compared to $40,642 in
cash for operating activities for the year ended December 31, 2019. This
decrease in cash used for operating activities is primarily as a result of the
increase in accounts payable and accrued expenses.
Cash provided by financing activities. Net cash provided by financing activities
for the year ended December 31, 2020 was $39,377 as compared to $37,563 for the
year ended December 31, 2019 primarily as a result of an increase in amounts due
to affiliates offset partially by a decrease in the amount of loans from
stockholders and officer received.
Off-Balance Sheet Arrangements
The Company has no off-balance sheet arrangements.
New Accounting Pronouncements
In December 2019, the FASB issued ASU No. 2019-12, Income Taxes - simplifying
the accounting for income taxes (Topic 740), which is meant to simplify the
accounting for income taxes by removing certain exceptions to the general
principles in Topic 740, Income Taxes. The amendment also improves consistent
application and simplify GAAP for other areas of Topic 740 by clarifying and
amending existing guidance. This ASU is effective January 1, 2021, and we do
not expect the adoption of this standard to have a significant impact on our
financial position and results of operations.
No other recently issued accounting pronouncements had or are expected to have a
material impact on the Company's consolidated financial statements.
© Edgar Online, source Glimpses