UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-KSB
Mark One:
[x] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [Fee Required]
For the fiscal year ended August 31, 1996
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934 [No Fee Required]
For the transition period from _______________________ to ______________________
Commission file number 0-25702
AMWEST ENVIRONMENTAL GROUP, INC.
(Name of Small Business Issuer in its charter)
NEVADA 88-0289700
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
10701 LOS ALAMITOS BLVD.
LOS ALAMITOS, CA 90720
(Address of principal executive offices) (Zip Code)
Issuer's Telephone Number: (310) 799-1888
Securities registered under Section 12(b) of the Exchange Act:
Title of each class Name of each exchange on which registered
None
Securities registered under Section 12(g) of the Exchange Act:
None
(Title of class)
None
(Title of class)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 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
<PAGE>
Check if there is disclosure of delinquent filers in response to Item 405 of
Regulation S-B is not contained in this form, and no disclosure will be
contained, to the best of the registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-
KSB or any amendment to this Form 10-KSB. [ ]
State issuer's revenues for the most recent fiscal year: $889,896.
As of August 31, 1996, the aggregate market value of the voting stock held by
non-affiliates of the registrant was $15,102,007 based on shares at an average
bid and ask price of $1.125. This calculation was made on the assumption that
affiliates are officers, directors and persons holding more than ten percent
(10%) of the registrant's outstanding voting stock.
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: 18,305,463.
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PART I
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Item 1. Description of Business
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(a) Business Development
General Statement
Amwest Environmental Group, Inc. (the "Registrant"), a Nevada Corporation,
incorporated on June 17, 1994. Earth Products Advancement, Inc., a Utah
Corporation and Amwest Environmental Group, a Nevada Corporation, were merged
with the Registrant. Articles of Merger were filed with the Nevada Secretary of
State on June 28, 1994, and with the Utah Division of Corporations and
Commercial Code on June 29, 1994, at which time the merger became effective.
Earth Products Advancement, Inc.
Earth Products Advancement was incorporated in the State of Utah on April
20, 1972, as Patent World, Inc. Since its inception, Earth Products Advancement
has had the following name changes on the dates indicated: Kitchen Gardens,
Inc., July 3, 1975; Earthworm 2001, September 2, 1983; Aqua Kleen International,
April 17, 1984; Earth Products Advancement, Inc., September 28, 1992. Earth
Products Advancement, Inc., was not actively engaged in any business for several
years prior to its merger with the Registrant.
Amwest Environmental Group
Amwest Environmental Group, the predecessor of Amwest Environmental Group,
Inc., was incorporated in the State of Nevada on September 23, 1992, for the
purpose of engaging in the business of environmental testing, engineering,
consulting and construction. After its merger with Earth Products Advancement,
Inc., the business of Amwest Environmental Group has been carried on by Amwest
Environmental Group, Inc., the Registrant.
Amwest Bluestar Corporation
Amwest Bluestar Corporation (Bluestar), incorporated in the State of
California on September 21, 1993, is a wholly owned subsidiary of the Registrant
and began operation on May, 1995. Bluestar is engaged in sales of chemical
products for household and industrial clean-up use. The household products
include toilet bowl cleaners and utensil cleaners. Industrial products include
metal oil stain cleaner, benzine-free paint remover, and
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corrosion inhibitors. Further, Amwest Bluestar is engaged in industrial clean-up
projects and presently is engaged in the cleaning of a fuel pipeline at castle
AFB in California. Amwest Bluestar has an ongoing clean-up contract with the
California Department of Transportation, CalTrans, for clean-up of tanks and
pipelines in various locations throughout Southern California.
Amwest Bluestar is engaged in the business of selling U.S. made water
purification systems to China. One container has been sold to date and it is
anticipated that ten to fifteen containers will be sold during the coming year.
Amwest Bluestar is working closely with the Chemical Industry of China to
purchase equipment and plants for China. Bluestar Corporation produces over one
hundred types of industrial clean-up chemicals and has formed a marketing group
to sell these products in the United States.
Amwest Bluestar has formed a joint venture with a U.S. industrial clean-up
firm, Erickson Environmental, Inc. Under the joint venture agreement, Amwest
Bluestar will provide proprietary industrial clean-up technology to Erickson as
a sub-contractor. Amwest Bluestar is developing a mobile unit for petroleum
sludge recycling application.
Amwest Environmental Engineering Corporation
Amwest Environmental Engineering Corporation (Engineering), incorporated in
the State of California on March 24, 1993, is a wholly owned subsidiary of the
Registrant. Engineering, which began operating in 1994, was formed for the
purpose of conducting environmental consulting and construction. The consulting
department of Engineering is equipped to handle Phase I and Phase II
environmental projects. Presently, the subsidiary is primarily focused on
government-related contracts. Engineering subsidiary has an ongoing contract
with United States Army Corp. of Engineers to perform underground storage tank
remediation. This subsidiary has four new ongoing jobs with the City of Los
Angeles for underground storage tank remediation. This group currently has
several ongoing phase 1 and phase 2 jobs and together with its joint venture
partner, SAIC, Inc., is one of the finalists to handle the major project of
turnkey waste water treatment for the city of Daliem, China. This job involves
design and construction assignments.
Amwest International Corporation
Amwest International Corporation (International), incorporated in the State
of California is involved in marketing of environmental equipment, transfer of
environmental technologies, assisting Pacific Rim countries in engineering
project development as well as to seek funding for major projects in the Pacific
Rim countries. This subsidiary is seeking funding to develop solid waste
recycling plants in the City of Beijing
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and Xian, China to convert their solid waste into various types of construction
materials. This subsidiary signed a joint venture agreement with the
Environmental Protection Agency of Guangdong Province of China to install
proprietary air pollution equipments in the cement plants in this province to
recapture roughly 5% of the cements which are normally lost through the chimney.
(b) Business of Registrant
Principal products or services and their markets
The Registrant has formed Seven (7) subsidiaries to carry on the various
aspects of its business. All of these subsidiaries, with the exception of Amwest
Environmental Engineering Corporation, Amwest Bluestar Corporation, and Amwest
International Corporation are presently inactive. Amwest Environmental
Engineering Corporation, Amwest Bluestar Corporation, and Amwest International
Corporation are the operating entities of the Registrant.
The Registrant is engaged in the business of environmental testing,
engineering, consulting, construction, and industrial cleanup. The Registrant's
Engineering Group services are divided into three Phases. These Phases are
standard throughout the industry and are derived from "Super Fund" legislation.
These Phases are:
Phase I - Environmental studies. Environmental studies include
environmental impact studies, environmental audits, potential contamination
surveys and potential environmental liability evaluations. This phase is
necessary prior to any planning, design and construction of environmental
treatment, storage or disposal facilities.
Phase II - Remediation (Cleanup) Studies. Remediation Studies involve
surveys for potential contamination. If a site is found to be contaminated,
further investigation is done to develop options for site remediation. These
investigations include geophysical studies; geohydrological studies; air, soil
and water studies; nearby surface water studies; and biological studies.
Phase III - Environmental Engineering. Environmental Engineering includes
surveys of site, studies, planning, design and construction management for an
environmental facility. Those facilities include water treatment plants, air
pollution control units, noise control facilities, solid waste incinerators or
facilities, recycling plants, hazardous waste treatment plants, and disposal
facilities (such as landfills). Environmental engineering is the planning and
management of the construction of treatment, storage or disposal (TSD)
facilities.
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Site remediation is a recently developed environmental engineering
technique which includes actual site cleanup activities. Those activities may
include design and construction of a remediation facility for soil, groundwater,
and/or hazardous waste or, if no facility is involved, excavation, hauling, and
off-site disposal of the hazardous material may be used.
Presently the Registrant's Engineering group is mainly involved with Phases
I to III services as discussed previously and underground storage tank removal
and installation. The Registrant also has extensive experience with construction
of remediation plants, i.e., vapor extraction systems, bioremediation
facilities, asphalt recycling facilities and extraction/removal of solid wastes.
Amwest Bluestar Group has expanded its scope of operation from industrial
clean-up jobs to trading of chemicals and equipment and plants, as well as
development of a new mobile unit for petroleum sludge recycling.
Amwest International Group is mainly involved in the development of
projects or joint venture services for environmentally related activities in the
Pacific Rim countries.
The Registrant's main marketing activities are conducted in the United
States with limited activities in Taiwan, Korea, Mexico, and Mainland China. The
corporation's midterm plan is to gradually expand its business activities into
other Pacific rim countries. Amwest provides environmental audits,
investigations, feasibility studies, engineering designs, construction,
equipment and chemical trading/manufacturing, industrial cleanup and education.
Amwest is currently developing a new group, "American Rubber Group", for the
tire recycling business.
Status of publicly announced services
On June 1, 1994, the Registrant entered into a contract with the City of
Beijing, China, to develop a solid waste recycling project. This joint venture
provides that Amwest will provide the technology for waste recycling as well as
managerial expertise. Amwest will also purchase the necessary equipment and
vehicles. The City of Beijing will provide land and utilities along with certain
technology. Amwest and potential financial partners will own seventy percent
(70%) of the joint venture. This joint venture allows Amwest to seek $80 million
dollars for the project in phases. Presently the project is in the planning
stages. Although there is no statement in the contract with the City of Beijing
concerning the date on which funding has to be provided for the project, the
parties have a verbal understanding that the project must be fully funded by
June 1, 1999. Pursuant to the terms of the contract, the Registrant has the
right to seek at least $30 million for the first phase of the project.
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<PAGE>
Again, there is no specific date on which these funds must be available. The
Registrant has contacted several sources of funds and all negotiations are in
the preliminary phase.
Amwest has signed a similar exclusive joint venture agreement with Xian
City to use the same technology for the treatment of 1.5 million metric tons of
solid waste produced by Xian City each year, plus ten million metric tons of
existing solid waste from Xian City area and convert them into various types of
building materials. The Company anticipates that twenty such solid waste
recycling plants for the City of Xian may be constructed.
Competitive business conditions and Registrant's position in the industry
and methods of competition
The Registrant is in a highly competitive field as it competes with other
similar businesses on local, national and international levels. The Registrant
will face substantial competition when bidding for contracts in the public
sector. The key to increasing this public clientele is to have adequate
experience, technology, and relationships in the field. Amwest's principals have
experience, and the company has several cost-effective proprietary technologies.
The Company has established relationships with others in the Pacific Rim
countries.
Sources and availability of raw material and professional employees
The Registrant is dependent on an adequate supply of chemicals for cleanup
programs. The supply of these chemicals is readily available both in the United
States and internationally. The Registrant also depends on the availability of
professional employees, i.e. chemists, biologists and engineers. The Registrant
has found that the supply of these professionals is adequate. Of the thirty-five
persons presently employed by the Registrant, twenty-two are professionals in
the United States, the balance are located in China.
Government Regulation
The Registrant is regulated by both the Federal and State governments. The
principal Federal laws governing the Registrant are the Resource Conservation
and Recovery Act of 1976 (RCRA, 1976) and the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 (CERC LA, 1980). The RCRA,
1976, impacts the Registrant by regulating the treatment, storage,
transportation and disposal of hazardous wastes which have adverse effects on
health and the environment. Further, the Act provides for the promulgation of
guidelines for solid waste collection, transport, separation, recovery and
disposal practices and systems. The CERC LA, 1980, defines, designates
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and regulates hazardous substances. This law also provides for the storage,
handling and disposal of such hazardous substances.
Other local regulations/requirements which the Registrant is required to
follow include state contractor laws such as Contractor A and Hazardous Material
Disposal licenses and local pollution prevention permits such as Southern
California Air Quality Management District (AQMD) 1166 permits. The Registrant
has all the above mentioned licenses and permits for the project performance. In
addition, all Registrant's employees involved in hazardous wastes field work
have forty-hour health and safety training certificates as required by OSHA and
RCRA.
Potential Liability and Insurance
Most of the Registrant's contracts require it to maintain insurance which
includes general liability insurance for bodily injury, death or loss or damage
to property. Further, these contracts may require the Registrant to indemnify
its clients for claims or losses for personal injury or property damage
resulting from the Registrant's negligent performance of its duties. Currently
the Registrant is able to provide adequate insurance coverage to meet the
requirements of its contracts.
Presently the Registrant maintains a general liability policy in the amount
of $1,000,000. Should any particular contract require additional coverage, the
Registrant has the ability to increase its coverage. In the past, this coverage
has been increased to $5,000,000.
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Item 2. Description of Property
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The Registrant leases a central office at 10701 Los Alamitos Blvd, third
floor, Los Alamitos, California, 90720. This office contains approximately 9,474
square feet. The lease for this office space extends through February 1999. The
Registrant is liable for a total of rental of $272,844 through February, 1999
(at $7,579 per month).
The Registrant holds title to 1.76 acres of land with an approximately
6,000 square foot building in Huntington Beach, California. This property was
purchased by the Registrant for consideration of 2,150,000 shares of common
stock. The building on the property contains approximately 6,000 square feet and
is in good condition. It is estimated that the building could be converted to
offices for approximately $20,000. The building is being used by Amwest Bluestar
as the storage and distribution center for its import and export business for
industrial clean-up chemicals. This facility is also used to store construction
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equipment for our Engineering subsidiary. This property was purchased from
Leader Partnership, a California limited partnership with ten limited partners
and three general partners. One of the partners, James C. Lu, is President of
the Registrant. After distribution of the shares received from the sale of the
property, no partner, except James C. Lu, owned more than five percent (5%) of
the Registrant.
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Item 3. Legal Proceedings
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The Registrant is not a party to any litigation, which is not routine and
incidental to its business, and is not aware of any pending or threatened
litigation.
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Item 4. Submission of Matters to a Vote of Security Holders
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No matters were submitted to a vote of the security holders of the
Registrant during the fourth quarter of the fiscal year covered by this report.
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PART II
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Item 5. Market for Registrant's Common Equity and Related Stockholder
Matters.
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Price Range of Common Stock
The Registrant's common stock has had limited trades over the counter
(O.T.C.) on the bulletin board effective under the symbol AEGI. The following
table sets forth the high and low bid prices of the common stock for the periods
indicated. The bid prices represent prices between dealers, which do not include
retail mark-ups, markdowns or commission, and may not represent actual
transactions.
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The public trading in the common stock has been sporadic.
High Low
---- ---
Third Quarter 1995 $1.375 $0.375
Fourth Quarter 1995 $3.625 $1.00
First Quarter 1996 $3.438 $1.375
Second Quarter 1996 $1.50 $0.75
The source of the above quotations was Helix Securities, a market maker of
the Company, and also from National Quotation Bureau, a publisher for the NASD
OTC Bulletin Board.
Number of Shareholders
As of August 31, 1996, there were 855 holders of record of the Registrant's
common stock.
Dividends
The Registrant has never paid any dividends on its common stock.
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<PAGE>
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Item 6. Management's Discussion and Analysis or Plan of Operation.
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Analysis of Financial Condition and Results of Operation
The following table sets out the financial condition of the Registrant for each
of the last two fiscal years:
<TABLE>
<CAPTION>
12 Months Ending In
-----------------------------------
August 31, 1996 August 31, 1995
--------------- ---------------
<S> <C> <C>
Statement of Earnings:
Revenue.................................................. $ 889,896 $1,500,375
Net Income (Loss) .................................................. ($1,833,920) ($1,171,365)
Per Share Net Income (Loss) ........................................ $0.10 ($0.07)
Number of Common Shares Outstanding ................................ 18,305,463 16,599,038
Balance Sheet Data:
Total Assets............................................. $4,346,288 $3,821,604
Total Current Liabilities .......................................... $538,364 $631,217
Cash Dividends Declared per Common Share ........................... $0 $0
Stockholders' Equity ............................................... $3,308,699 $3,285,832
</TABLE>
Net loss for the fiscal year ending August 31, 1996 was $1,833,920, up from
the net loss of $1,171,365 recorded in the fiscal year ended August 31, 1995.
The primary reason for the loss during the fiscal year ended August 31, 1996 was
the depreciation of real estate properties. Other reasons also include heavy
one-time startup costs of the Registrant's subsidiaries and reorganization of
the construction group which is part of the engineering subsidiary. The factors
contributing to this loss are isolated events but may possibly occur again in
the next fiscal year.
The Registrant has experienced growth in terms of projects finished,
marketing activities, and future contracts. Continuing the activities from 1994,
the major areas of activities are in engineering, consultation, construction,
and industrial cleanup. The former includes property Phase I assessments, site
Phase II investigations, site Phase III remediations, solid wastes and
wastewater treatments, underground storage tank (UST) removal and installation,
and construction of remediation facilities. The latter includes industrial
cleanup for U.S. Air Force, California
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Department of Transportation and private chemical manufacturers. Clients of
Amwest have been primarily private industries. However, during this period,
several projects have been contracted with the public sector. This trend is
anticipated to continue, reaching a balance between the private and public
sectors.
Registrant has performed most of its engineering, consultation and
construction in Southern California. All projects of the Registrant have been
finished in a timely manner. The volume of work, scope of business field, and
international projects available to the Registrant and other environmental
companies in the United States is increasing. Management of the Registrant can
not foresee change in this condition in the near future. As a result of the
aforesaid increase in available work the Registrant should sustain its present
growth for the short term (one year) and possibly on a long term basis (more
than one year).
Due to the reorganization of the construction group in the Engineering
subsidiary, and re-direction of the market area for construction into China,
limited resources have switched bidding of construction projects from Southern
California to China. This change is due to the fact that California had
temporarily terminated the Underground Tank Grant Program during the election
year, as well as the fast growth of wastewater treatment plant consulting and
construction business in China.
Statistical data has shown that china now has more wastewater treatment
plant projects than that of the rest of the world combined. The Registrant has
spent great efforts in this fiscal year trying to obtain this new market area.
This reorganization and market area change may temporarily affect the short-term
revenue, but the Registrant believes that it will assist growth in the future.
For example, due to the efforts in bidding the wastewater treatment plant
turnkey projects, the Registrant is able to be short-listed in several large
projects in China. Changes of bidding small construction projects in Southern
California to bidding large size projects in China may affect the operation and
growth of the construction group in the Engineering subsidiary.
The Registrant has entered into a joint venture with the cities of Beijing
and Xian, China. The future of these contracts is questionable as the Registrant
has, as of this date, been unable to locate sufficient financing. The existence
of these contracts should not impact the regular operation of the Registrant.
During this fiscal year the Registrant has developed two new lines of
business and in the process formed two new subsidiaries: American Rubber Group,
Inc., and ACT Consortium, Inc. American
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Rubber Group, Inc. was formed to conduct business in the tire recycling area,
and ACT Consortium, Inc. will be formed to conduct business in the cultural and
technology transfer, training, business promotion, tour group, conference
arrangement, and travel association promotion for Pacific Rim companies and
governmental agencies. The startup costs for these two new groups and two
relative young groups, Amwest Bluestar Corporation and Amwest International
Corporation, accounted for a significant part of the loss incurred by the
Registrant. Under the American Rubber Group, Inc., the Registrant is planning to
develop five individual tire recycling plants in the first one to two-year
period, when and if funds become available. Each plant is expected to generate
positive cash flow after two years of operation. Management presently cannot
foresee whether these entities may be completed in time due to unknown and
uncontrollable nature of fund raising. The ACT Consortium group will be a joint
venture with APF Travel, Inc. in Alhambra, California. APF approached the
Registrant two years ago and after careful evaluation and survey of the market
in the Pacific Rim region, the Registrant decided to accept APF's proposal.
During this fiscal year, in order to reduce overhead and more effectively
manage the business, the Amwest Environmental Science and the Manufacturing
groups were combined into the Amwest Engineering and Amwest International
Groups, respectively. Due to the nature of new or relatively new development of
the above discussed subsidiaries, startup costs were expended, as estimated in
the following table:
Name Estimated Startup Cost
Amwest Bluestar Corporation $180,000.00
Amwest International Corporation $150,000.00
American Rubber Group, Inc. $350,000.00
ACT Consortium, Inc. $100,000.00
Plan of Operation
Management believes that the Registrant cannot satisfy its cash
requirements for the next twelve (12) months from its cash flow. In order to
satisfy the need for additional funds the Registrant intends to raise funds for
the new development and to use its real property as collateral for a line of
credit. It is anticipated that this line of credit along with funds generated
from new and present contracts will be sufficient to satisfy the financial needs
of the Registrant during the next fiscal year.
Presently the Registrant has several projects in the research and
development stage. These projects include a recycling for "oily sludge", a
process for the manufacturing of products from recycled rubber, and a cryogenic
process for the
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production of ultra-fine crumb rubber. Ultra-fine crumb rubber can be used as
the basis for most rubber products. As these projects are in their initial
stages, management cannot state with any certainty whether any project will be
completed or result in the generation of income.
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Item 7. Financial Statements.
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See Item 13.
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Item 8. Changes In and Disagreements With Accountants
on Accounting and Financial Disclosure.
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There are no, nor have there been any, disagreements between the
Registrant and its accountants on any matter of accounting practices or
financial statement disclosure.
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PART III
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Item 9. Directors, Executive Officers, Promoters and Control
Persons; Compliance With Section 16(a) of the Exchange Act.
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Directors and Executive Officers
Period of Service
Name and Age Position(s) with Registrant as Director
- ------------ --------------------------- -----------
William D.Q. Fang, 55 Director/Secretary/Chairman Since June 1994
James C. Lu, 52 Director/President Since June 1994
James C. Lu obtained his Ph.D. in environmental engineering from the
University of Southern California in 1976. Dr. Lu has two M.S. degrees, one in
Civil and Environmental Engineering from the University of Cincinnati in 1972
and one in Sanitary Engineering from National Taiwan University in 1968. Dr. Lu
has graduated from the National Taiwan University with a B.S. in Civil
Engineering. Dr. Lu has,
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over the past twenty-two (22) years, been project manager, chief environmental
engineer and environmental engineering head of many environmental engineering
firms. Dr. Lu has been employed by Amwest Environmental Group since 1992 and was
the executive officer of Calscience Research, Inc. from 1978 to 1982; Calscience
Engineering, Inc. from 1986 to 1991; and Unitech Engineering from 1991 to 1992.
Dr. Lu was employed by the Los Angeles Sanitation Districts from 1982 to 1984
and Jacobs Engineering Group from 1984 to 1986, as Chief Environmental Engineer.
William D.Q. Fang received his B.S. in Physics from the North West
University, Xian, China in 1963. Mr. Fang has been employed by Amwest
Environmental since 1993 as an executive officer and scientist. From 1990 to
1993 Mr. Fang was employed by General Hightech Company as an executive officer
and a scientist. General Hightech Corp. was organized to develop high technology
medical electronic devices. Mr. Fang has served as the director of the
Environmental Protection Industry Association. Mr. Fang has over thirty (30)
years as a professor, scientist, chief engineer, environmental engineer and
executive officer of many environmental firms in the United States and Asia.
Officers and directors of the Company's subsidiaries, which were reported
in prior submissions have been deleted. It has been determined that such persons
do not come within Section 16(a) of the Exchange Act.
- --------------------------------------------------------------------------------
Item 10. Executive Compensation.
- --------------------------------------------------------------------------------
The table below represents the compensation awarded to James C. Lu, the
President and a member of the Board of Directors of the Registrant for the year
ended December 31, 1995. No executive officers of the Registrant had a total
salary and bonus for such year in excess of $100,000.
Name and Principal Other Awarded
Position Year Salary Bonus Compensation
- -------- ---- ------ ----- ------------
James C. Lu 1995 $50,000 None None
President
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Item 11. Security Ownership of Certain Beneficial Owners
and Management.
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The following table sets forth, as of August 31, 1996, information
regarding the beneficial ownership of shares by each person known to the Company
to own five percent (5%) or more of its outstanding shares and information
related to beneficial ownership by each of the Directors and Officers and by the
Directors and Officers as a group.
<TABLE>
<CAPTION>
Title Name and Amount of Percent
of Class Address of Owner Ownership of Class
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Common William D.Q. Fang 3,635,000 19.9%
9564 Daines Dr.
Temple City, CA 91780
Common James C. Lu 3,695,000 20.1%
6071 Manorfield Dr.
Huntington Beach, CA 92648
Common Peter Chen Chang 1,200,000 7.0%
#3 Alley 2 Sub-Sec 421
Kau Fu S. St. 28 Lin,
Chang Ho Li
Shin Ye Dist City of Taipei
Taiwan, ROC
Common Startronix International 1,500,000 8.2%
2402 Michelson Dr., Ste. 200
Irvine, CA 92715
Common All Officers and Directors 7,330,000 40.0%
as a group
</TABLE>
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Item 12. Certain Relationships and Related Transactions.
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There have been no transactions during the last two years or proposed
transactions to which the Registrant was or is to be a party with any of those
persons described in Reg. ss.228.404.
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Item 13. Exhibits and Reports on Form 8-K.
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(a) The following financial statements, financial statement schedules, and
supplementary data are included:
Financial Statement of August 31, 1996.........................F-1 through F-12.
(This space intentionally left blank.)
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<PAGE>
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
AMWEST ENVIRONMENTAL GROUP, INC.
By: /S/
----------------------------------
JAMES C. LU
President
Date: March 7, 1997
In accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /S/
----------------------------------
JAMES C. LU
Director
Date: March 7, 1997
By: /S/
----------------------------------
WILLIAM D.Q. FANG
Director
Date: March 7, 1997
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<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 12-mos
<FISCAL-YEAR-END> AUG-31-1996
<PERIOD-START> SEP-01-1995
<PERIOD-END> AUG-31-1996
<EXCHANGE-RATE> 1
<CASH> 5,605
<SECURITIES> 0
<RECEIVABLES> 319,735
<ALLOWANCES> 90,000
<INVENTORY> 0
<CURRENT-ASSETS> 238,389
<PP&E> 1,929,100
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0
0
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</TABLE>
