Amanasu Technologies 10-QSB 06-30-2007
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549

FORM 10-QSB

T   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
   
For the period ended June 30, 2007
     
*   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE Act of 1934
   
For the transition period from ___ to ___.

For the transition period from ___ to ___.

Commission file number: 001-31261
AMANASU TECHNOLOGIES CORPORATION
(Name of small business issuer as specified in its charter)

NEVADA
98-0351508
(State or other jurisdiction of incorporation)
(IRS Employer
Identification No.)

115 East 57th Street, 11th Floor New York, NY 10022  
  (Address of principal executive offices)

212-939-7278
  (Issuer's telephone number)

(Former name , former address and former fiscal year, if changed since last report)

Check whether issuer (1) filed all reports to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes X  No  O

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be filed by Section 12, 13, or 15(d) of the Exchange Act after the distribution of under a plan confirmed by a court. Yes  O  No  O  N/A  X

APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 46,506,300 as of May 14, 2007.

Transitional Small Business Disclosure Format: Yes O  No  X
 


AMANASU TECHNOLOGIES CORPORATION
QUARTERLY REPORT ON FORM 10QSB
FOR THE THREE MONTHS ENDED June 30, 2007
TABLE OF CONTENTS

 
 
PART1-FINANCIAL INFORMATION
  
     
Item 1:
FINANTIAL STATEMENTS:
  
     
4
     
5
     
6
     
7
     
Notes to Financial Statements (unaudited)
8
     
Item 2:
9
     
Item 3:
12
     
 
PART2-OTHER INFORMATION
  
     
Item 1:
13
Item 2:
13
Item 3:
13
Item 4:
13
Item 5:
13
Item 6:
13
 
14
 

PART1-FINANCIAL INFORMATION
ITEM 1.
FINANCIAL STATEMENTS

GENERAL

The Company's unaudited financial statements for the three months ended June 30, 2007 are included with this Form 10-QSB. The unaudited financial statements have been prepared in accordance with the instructions to Form 10-QSB and, therefore, do not include all information and footnotes necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. Operating results for the three months ended September, 2006 are not necessarily indicative of the results that can be expected for the fiscal year ending December 31, 2007.
 

AMANASU TECHNOLOGIES CORPORATION
(A Development Stage Company)
BALANCE SHEETS


   
June 30,
2007
(Unaudited)
  
December 31,
2006
(Audited)
  
ASSETS
          
Current Assets:
          
Cash
  
$
-
  
$
1,357
  
Total current assets
    
-
    
1,357
  
               
Fixed Assets:
              
Automobile
    
1,500
    
1,500
  
Less accumulated depreciation
    
1,428
    
1,356
  
Net fixed assets
    
72
    
144
  
               
 
          
 
  
Total Assets
  
$
72
  
$
1,501
  
               
LIABILITIES AND STOCKHOLDERS’ DEFICIT
              
Current Liabilities:
              
Accounts Payable
  
$
211
  
$
-
  
Accrued Expenses
  
2,415
  
2,415
  
Rent Payable
    
3,750
    
3,750
 
Advances from Shareholders
    
130,000
    
120,000
  
Other Advances
    
99,900
    
99,900
  
Total current liabilities
   
236,276
    
226,065
  
               
Stockholders’ Deficit:
              
Common Stock: authorized 100,000,000 shares of $.001 par value; 46,676,400 shares issued and outstanding
    
46,506
    
46,506
  
Additional paid-in capital
    
490,894
    
490,894
  
Deficit accumulated during development stage
    
(773,604)
 
(761,964)
Total stockholders’ deficit
    
(236,204)
    
(224,564)
  
Total Liabilities and Stockholders’ Deficit
  
$
72
  
$
1,501
  
 
The accompanying notes are an integral part of these financial statements.


AMANASU TECHNOLOGIES CORPORATION
(A Development Stage Company)
STATEMENTS OF OPERATIONS AND DEFICIT
ACCUMULATED DURING DEVELOPMENT STAGE
(Unaudited)


   
 
 
Six Months Periods Ended June 30, 
  
December 1, 1997
(Date of Inception)
To September 30,
 
   
2007 
  
2006
  
2007
  
               
Revenue
  
$
-
  
$
-
  
$
91,912
  
Expenses
    
11,640
   
29,997
    
765,442
  
Impairment Charge - write down of licensing agreement
    
-
 
-
 
103,528
Operating loss
    
(11,640
)
  
(29,997
)
  
(777,058
)
Other Income - Interest
    
-
    
32
    
3,454
  
Loss accumulated during development stage
    
$ (11,640
)
  
$ (29,965
)
  
$ (773,604
)
                     
Loss Per Share -
                    
Basic and Diluted
  
$
-
  
$
-
        
                     
Average shares outstanding
   
46,676,400
    
46,676,400
        

These accompanying notes are an integral part of these financial statements


AMANASU TECHNOLOGIES CORPORATION
(A Development Stage Company)
STATEMENTS OF OPERATIONS AND DEFICIT
ACCUMULATED DURING DEVELOPMENT STAGE
(Unaudited)


   
 
 
Three Months Periods Ended June 30, 
  
December 1, 1997
(Date of Inception)
To September 30,
 
   
2007 
  
2006
  
2007
  
               
Revenue
  
$
-
  
$
-
  
$
91,912
  
Expenses
    
10,990
   
4,251
    
765,442
  
Impairment Charge - write down of licensing agreement
    
-
 
-
 
103,528
Operating loss
    
(10,990
)
  
(4,251
)
  
(777,058
)
Other Income - Interest
    
-
    
-
    
3,454
  
Loss accumulated during development stage
    
$ (10,990
)
  
$ (4,251
)
  
$ (773,604
)
                     
Loss Per Share -
                    
Basic and Diluted
  
$
-
  
$
-
        
                     
Average shares outstanding
   
46,676,400
    
46,676,400
        

These accompanying notes are an integral part of these financial statements


AMANASU TECHNOLOGIES CORPORATION
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(Unaudited)

   
Quarters Ended
June 30
  
December 1, 1997
(Date of Inception)
  
   
2007
  
2006
  
To June 30, 2007
  
CASH FLOWS FROM OPERATIONS:
              
Net loss
  
$
(11,640
)
$
(29,965
)
$
(773,604
)
Charges not requiring the outlay of cash:
                    
Depreciation and amortization
    
72
    
4,788
    
57,900
  
Impairment of Licensing Agreement
    
-
    
-
    
21,300
  
Common stock issued for services
    
-
   
-
   
103,528
  
Changes in assets and liabilities:
                    
Increase (Decrease) in accrued liabilities
    
-
     7,484    
6,165
  
Increase in accounts payables
    
211
     -    
211
  
Net Cash Consumed By Operating Activities
   
(11,357)
 
(17,693)
 
(584,500)
 
                    
CASH FLOWS FROM INVESTING ACTIVITIES:
                    
Purchase of automobile
    
-
    
-
    
(1,500
)
Payment of amount due for licensing agreement
    
-
    
-
    
(160,000
)
 
                             
 Net Cash Consumed By Investing Activities
    
-
   
-
    
(161,500
)
 
                    
CASH FLOWS FROM FINANCING ACTIVITIES:
                    
Advance received
    
-
    
-
    
99,900
  
Issuances of common stock
    
-
    
-
    
446,100
  
Shareholder deposits for common stock
    
-
    
-
    
70,000
  
Shareholder advance
    
10,000
   
110,000
    
210,000
  
Repayment of shareholder advances
    
-
   
-
    
(80,000)
  
Advances from affiliate
    
-
   
100,000
    
200,000
  
Repayment of advances from affiliate
    
   
(200,000)
    
(200,000)
  
Net Cash Provided By Financing Activities
    
10,000
    
10,000
    
746,000
  
 
                    
Net Change In Cash
    
(1,357
)
  
(7,693
)
  
-
 
 
                    
Cash balance, beginning of period
    
1,357
    
7,693
    
-
  
 
             
    
         
Cash balance, end of period
  
$
-
  
$
-
  
$
-
  
 
These accompanying notes are an integral part of these financial statements


AMANASU TECHNOLOGIES CORPORATION
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
June 30, 2007
(Unaudited)
 

1.
BASIS OF PRESENTATION

The unaudited interim financial statements of Amanasu Technologies Corporation ("the Company") as of June 30, 2007 and for the three month periods ended June 30, 2007 and 2006, have been prepared in accordance with accounting principles generally accepted in the United States of America. In the opinion of management, such information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of such periods. The results of operations for the quarter and the six month period ended June 30, 2007 are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2007.

Certain information and disclosures normally included in the notes to financial statements have been condensed or omitted as permitted by the rules and regulations of the Securities and Exchange Commission, although the Company believes the disclosure is adequate to make the information presented not misleading. The accompanying unaudited financial statements should be read in conjunction with the financial statements of the Company for the year ended December 31, 2006.
 
2.
GOING CONCERN UNCERTAINTY

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As shown in the financial statements, the Company had a material working capital deficiency and an accumulated deficit at June 30, 2007, and a record of continuing losses. These factors raise substantial doubt about the ability of the Company to continue as a going concern. The financial statements do not include adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue in operation.

The Company's present plans, the realization of which cannot be assured, to overcome these difficulties include but are not limited to the continuing effort to investigate business acquisitions and joint ventures.
 
8
 
ITEM 2.   MANAGEMENT'S DISCUSSION AND OR PLAN OF OPERATION

Cautionary Statement

SAFE HARBOR

This Form 10QSB contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors , and other risks identified in a companies' annual report on Form 10-KSB and other filings made by such company with the United States Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements.

The following discussion should be read in conjunction with the Company's Financial Statements, including the Notes thereto, appearing elsewhere in this Quarterly Report and in the Annual Report for the year ended December 31, 2006.
 
 
COMPANY OVERVIEW

Amanasu Technology is currently in its development stage and significant risks exist with respect to its business. It acquired the exclusive, worldwide rights to a high efficiency electric motor and a high-powered magnet both of which are used in conjunction with an electrical motor scooter.

The market place for electric scooters has become intensely competitive, thus offering rapid battery recharge time and more economical sale prices are prerequisites to compete successfully. To meet the economical sale price requirement the Company plan to conducted their manufacturing in China to reduce cost, and hoped it would meet the Company's expectations; however, significant difficulty with protecting the Company's proprietary technology unwillingly emerged. In addition to proprietary issues, there were major concerns in secure customer service follow-ups (i.e. product warranty, maintenance, etc). The Company realized that with minimal control of the manufacturing standards in China, the result of safety related incidents, if not managed appropriately, would be an overwhelming liability for the Company. To solve the two major issues, the Company decided to initiate a cooperative with a company that already produces completed electric scooters in a successful marketing condition. Evader Motersports, Inc. ("Evader"), an electric motorcycle producer, entered into an International Distributor Agreement, whereby the Company is appointed as an exclusive distributor of Evader products. Evader,in turn, would manage customer-service concerns. The Company was granted the exclusive rights for the motorcycle retail industry in Japan, with the right to include other marketing channels provided that it was agreed upon by both parties. The Company also considered Evader as a prospective company to share its technology with to create improved and more advanced electric scooters. The Company believed that with a combined effort using both companies' resources and technology, the resulting product would make a stronger impact to the market.

Further marketing research was carried out comparing current electric scooters on the market and Evader's scooters. The reserach concluded that further refinement in serveral areas were required. First the retail price of the Evader scooters was too high to be competitive in the Japanese market. The reserach also found that a new company recently began importing electric scooters from China to Japan directly. The quality of their product is unclear; however, the retail price of the new company's product effectively competes in the Japanese market. The refinements needed to make the Evader scooters competitive economically would take too much time, thus the Company has decided to discontinue business relations with Evader, and put the electric scooter project on hold until the Company is able to attain more resources.

In place of the elctric scooter, other projects including a cooperative with Seems Inc., formerly Pixen and their breakthrough "Bio-scent technology" are in development. Seems Inc. is a Pioneer in the newly developed bio-scent technology industry. Bio-scent technology involves the application of "scent data transmission", a digitised form of scents, in various industries such as biotechnology, medical care, environment, security, etc in addition to common aroma therapy. Due to its revolutionary technologies, Seems has been able to become a multi-million dollar company in less than 6 years and was expected to become public by the end of 2006. There has been a delay in the transition and Seems expects to go public in early 2008 Its DAA (Defensive Aromatic Air) is its current flagship product. In addition to being an air purifying system, Seems's DAA effectively removes up to 91% of air pollutants such as ammonia, and by products of cigarette smoke. It also provides odour neutralization , and air-borne anti-bacterial effects. Seems has also developed a scent-particle sensor, which is programable to detect certain scent particles. This sensor is 1000 times more sensitive than even a dogs sense of smell. This scent detection system can be applied in fields such cancer detection. All diseases carry a scent profile that is undetectable by the human senses. Seems's sensor is able to detect these scent profiles and display the digitised scent data. Amanasu Technology and Seems, are in discussions to Pioneer the "Bio-scent technology" industry in North America, in early 2008 with Seems investing into Amanasu Technology . Amanasu Technology plans to be involved in sales and marketing of Seems's products.

During the quarter ended June 30, 2007, the Company has been working with a subsidiary of Amanasu Corporation in Japan, AWI Corporation. A.W.I Corporation researches and develops water purification technologies. One of A.W.I's principle products is an industrial water purification solution that is integrated into existing water purification systems of city buildings. The Company is working with A.W.I to bring its technology to North America. This technology, however, requires FDA approval, and since the Company recently attained a small business qualification from the FDA, the Company will submit this technology to the FDA for approval.
 
9

PRODUCT

Electric Motor Scooter (Amanasu Technology)

The Company's principal product will be a lightweight motor scooter that features the Company's proprietary electric motor. The one passenger scooter also will feature a stepless transmission, an electromotive brake, and is expected to weigh 107 kg. The Company will use an otherwise standard leaded battery. Due to the unique features of the licensed technologies, the scooter is expected to deliver improved operational efficiencies over competitive products. On December 26, 2001, Sanwa Electronics Co., Inc. performed two independent tests on one of the Company's scooters. The test results indicated that the motor scooter can travel 65 to 85 km on a full battery charge, at an average running speed of 30 km/hour. The battery charge time to travel these distances approximated 2 hours. Sanwa Electronics conducted the tests on a relatively flat road grade with limited traffic density. These results contrast with Honda's electric scooter (Year 2001-Model #A-AF36). According to product literature published by Honda, the scooter travels approximately 60 km at 30 km/hour, and a full recharge requires approximately 8 hours. Conditions, such as road grade and travel density, regarding its scooter were not contained in the Honda information.

Gas powered scooters while generally an inexpensive mode of transportation, typically are powered by two-stroke engines fueled by an oil and gasoline mixture. These engines are small with compressed power, and therefore ideally suited for scooter use. However, clouds of oily smoke trailing out of the engine, which evidences its major disadvantages, commonly identify two-stroke engines. Two-stroke engines use fuel inefficiently and, more importantly, have high pollution emissions. They generate pollution from two sources; the combustion of oil in the fuel, and the leaking of fuel through the exhaust port during engine use. In promoting its product to its targeted markets, the Company will seek to capitalize on its strong operational efficiencies of the technology compared with other electric scooters, while championing its product's environmental advantages to gas powered versions.

The Company first intentions was to participate in the emerging electric vehicle market by using its licensed technologies to design, manufacture, and market lightweight, electric motor scooters. The Company planned to provide its own battery charging technology to Evader Motorcycle, Inc. to develop an improved electric scooter aiming at the Japan and Southeast Asian markets; however, with recently marketing research, the Evader product was not able to meet the Company's pricing standards. The Company's electric scooter project will be on hold until more customer-service related resources can be attained.

Defensive Aromatic Air (Seems)
Seems' proprietary DAA professional aroma system is Seems' current flagship product. The ADD realeases fragrant aromas from a fragrance cartridge of which a variety of scents are available. The noiseless system is fully automated, controlling the surrounding environments aroma concentration levels to ensure that the scent will not become excessive. The primary difference between conventional air purifiers and Seems' DAA, is conventional air purifiers filter air, however, release back harmful air pollutants that were present in the air to being with. Seems' DAA along with Searoma cartridge, gives it the not only the ability to act as an air purifier, but also an effective odour-neurtralizer, and air-borne anti-bacterial elimination system. Currently, the DAA is being used in Clinics, car dealerships, restaurants, etc in Japan. The main unit dimensions are 890 mm x 180 mm and weighs 7.4 kg (w/ cartridge ~ 8.4 kg)

Scent-Sensor (Seems)
Canines have scent sensory perception one hundred million times greater than that of a human being. Research in Japan was recently carried out using a specially trained dog. This dog was able to detect cancerous scents from breath samples taken from cancer patients. This type of scent sensory research, is what has lead to Seems' proprietary scent-sensor technology. Up till now, scent-sensors technology use has been limited to technologies such as the breathalizer. Pixen's scent-sensory on the other hand is able to detect various scent profiles at a sensitivity one thousand times greater than that of canines. The scent sensor detects scent particles and translates it into digitised data to be displayed. This type of sensor is able to detect pathenogenic scent profiles, which can be applied in various ways in the medical field, such as detection of diabetic ketosis, smallpox, and even early onset of cancer.
 
 
PLAN OF OPERATION

The Company is a development stage corporation. It has not commenced its planned operations of manufacturing and marketing a lightweight electrical motor scooter. Its operations to date have been limited to conducting various tests on its technologies.

 
10

The Company's plan of operations for the next 12 months was to help Evader refine it's electric scooter implementing Amanasu's proprietary rapid battery charging technology; however, due to recent marketing research Evader's original product did not meet the Company's standards, which the Company felt were required to compete successful in the Japanese, and southeast Asian markets.

The original plan was to have Evader assume responsibility for the management of customer service related issues because Evader already had such a system established. The Company would in turn provide it's own technologies, and assume responsibility of marketing Evader's product. While refinements were done, the Company would market Evader's original product to generate revenue. The Company came about two marketing channels: the first being the biggest dealer of used motorcycles in Japan; and the second a used automobile agent. Negotiations with both parties have proceeded since August 2005, and if an agreement could be reached, the Company would have distribution to 1500 to 2000 retail outlets across Japan. Marketing through these channels may have also proved to be a good testing ground for Evader's electric scooter. On August 26th, 2005 shipped one proto-type unit to Japan; however, the approval by the Japan Ministry of Land, Infrastructure, and Transport for use of the vehicle was rejected due to an unqualified battery structure. With the rejection, and the product's lack of marketability the Company has decided to put this project on hold until more resources can be attained or if the Company is able to come in contact with more a suitable Company to collaborate with.

Since an unsuccessful partnership with Evader, the Company has returned back to its electric scooter with its patented short battery charge time. The Company has decided to continue research and development in order to further improve and refine the electric scooter's battery and also to lower the electric scooters price. The Company believes that efficient battery operation, and low sale price, are key to a commercially viable product.

The project with Seems Inc has not bee moving as scheduled. Seems has delayed in becoming public due to stringent analysis of its company and expects to become public in early 2008. Since pre-market approval is required by the FDA, launching Seems' products will take 8-12 months, providing the FDA grants approval.

Pixen under went a name change and is now known as Seems Inc. Seems Inc. will retain the name Pixen as a brand name for its products. The project with Seems has hit two barriers. Seems has collected sufficient funds and attained the requirements to become public in Japan; however, the company analysis has taken longer than expected and Seems has been informed that it may take another 6-12 months before it can be listed. Secondly, the United States does not recognize Japanese health certifications, and Seems' products must be reapproved by the FDA. Amanasu Technologies as taken the initial steps and received the MDUFMA Small Business Qualification in order to reduce cost for pre-market approval, and is currently collecting product data and translating it into english to submit its first PMA. The cost of this project is taken into account in the estimated expenditures for the 2007 fiscal year ending December 31, 2007. The approval of the DAA is believed to take no more than 8-12 months; however, the scent scenor is believed to be a FDA Class 3 medical device, which may take longer.

The most recent partnership of the Company and A.W.I is in the process of discussions; however, FDA pre-market approval for its water purification solution is being prepared.


Other than the provision for alternating business planning costs discussed above, the Company's cash requirements for the next 6 months are estimated to be $145,000. This amount is comprised of the following estimate expenditures; $100,000 in annual salaries for office personnel, office expenses and travel, $10,000 for rent, $20,000 for professional fees, and $15,000 for miscellaneous expenses.

 
11

As stated above, the Company can not predict whether or not it will be successful in its capital raising efforts, and, thus, be able to satisfy its cash requirements for the next 6 months. If the Company is unsuccessful in raising at least $145,000, it may not be able to complete its plan of operations as discussed above.


MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Company did not generate any revenues for the three months ended June 30, 2007 or for the same period in 2006 and interest earned on bank deposits in 2006 period was $32.

Total expenses for the three months period ended June 30, 2007 was $10,990 compared to $4,251 for the same period of 2006. The increase is due to the ambiguity in timing incoming invoices. Total expenses for the six months period ended June 30, 2007 was $11,640,compared to $29,997 for the same period of 2006. The decrease is due to the company's efforts to lower cost until Seems and A.W.I products are approved by the FDA. The company current has reduced its cost to basic levels.


LIQUIDITY AND CAPITAL RESOURCES

In the six months ended June 30, 2007 cash used in operating activites was $11,357, compared to $17,693 for the same period in 2006. The decrease is due to the company's efforts to lower cost until Seems and A.W.I products are approved by the FDA. The company current has reduced its cost to basic levels.

Total assets as of June 30, 2007 were $72 representing a decrease of $1429 from total assets of $1,501 as of December 31, 2006. This decrease is due to consumption of cash for operating activities

The Company intends to raise additional funds in the near future through private placements of its common stock. The proceeds from such private placements will be allocated for administrative salaries, office expenses and travel, product development and testing, and product promotion.


OFF-BALANCE SHEET ARRANGEMENTS

The Company has no off-balance sheet arrangements.

 
Item 3:       EFFECTIVENESS OF THE REGISTRANT’S DICLOSURE CONTROLS AND PROCEDURES

 
12

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

The Company carried out an evaluation of the effectiveness of the Company's disclosure controls and procedures (as defined by Rule 13a-15(e) under the Securities Exchange Act of 1934) under the supervision and with the participation of the Company's Chief Executive Officer and Chief Financial Officer as of a date within 90 days of the filings date of Form 10QSB. Based on and as of the date of such evaluation, the aforementioned officers have concluded that the Company's disclosure controls and procedures have functioned effectively so as to provide information necessary whether:

(i)
this quarterly report on Form 10 QSB contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report on Form 10 QSB, and (ii) the financial statements, and other financial information included in this quarterly report on Form 10 QSB, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this quarterly report on Form 10 QSB.


CHANGES IN INTERNAL CONTROLS

There have been no significant changes in the Company's internal controls or in other factors since the date of the Chief Executive Officer's, Chief Financial Officer's and Chief Accounting Officer's evaluation that could significantly affect these internal controls, including any corrective actions with regards to significant deficiencies and material weaknesses.


Part II OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

On February 10, 2006, a law suit was commenced in which the Company, an affiliated company, and an officer of the Company were named as defendants. During the course of that law suit, $652,409 of Company funds was frozen by court order. The lawsuit was subsequently settled on March 27, 2007.

Item 2. CHANGES IN SECURITIES
None

Item 3. DEFAULTS UPON SENIOR SECURITIES
None

Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None

Item 5. OTHER INFORMATION
None

Item 6. EXHIBITS
(a). Furnish the Exhibits required by Item 601 of Regulation S-B.

Exhibit 31 - Certification Pursuant To Section 302 Of The Sarbanes-Oxley Act Of 2002.

Exhibit 32 - Certification Pursuant To Section 906 Of The Sarbanes-Oxley Act Of 2002.

(b) Reports on Form 8-K.
None

 
13
 
SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, there unto duly authorized.

AMANASU TECHNOLOGIES CORPORATION

Date: August 21, 2007

/s/ Hideyuki Shiraishi

Hideyuki Shiraishi
Chief Executive Officer
Chief Financial Officer
Chief Accounting Officer
 
13