Nevada
|
65-1000634
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
1191
Center Point Dr. Henderson, NV
|
89704
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Item
|
Description
|
Page
|
Part
I
|
||
1
|
||
3
|
||
3
|
||
3
|
||
Part
II
|
||
3
|
||
4
|
||
8
|
||
8
|
||
9
|
||
Part
III
|
||
9
|
||
10
|
||
11
|
||
11
|
||
Part
IV
|
||
11
|
||
11
|
||
12
|
Item 1. |
Description of
Business
|
Item 2. |
Properties
|
Item 3. |
Legal
Proceedings
|
Item 4. |
Submission
of Matters to Vote of Security
Holders.
|
Item 5. |
Market
for Common Equity; Related Stockholder Matters and Small Business
Issuer
Purchases of Equity Securities.
|
HIGH
|
LOW
|
||||||
FISCAL
2006
|
|||||||
Fourth
Quarter (through December 31, 2006)
|
$
|
1.31
|
$
|
0.03
|
|||
Third
Quarter (through September 30, 2006)
|
$
|
2.40
|
$
|
0.15
|
|||
Second
Quarter (through June 30, 2006)
|
$
|
4.40
|
$
|
1.20
|
|||
First
Quarter (through March 31, 2006)
|
$
|
4.90
|
$
|
2.55
|
|||
FISCAL
2005
|
|||||||
Fourth
Quarter (through December 31, 2005)
|
$
|
9.00
|
$
|
2.00
|
|||
Third
Quarter (through September 30, 2005)
|
$
|
22.00
|
$
|
5.00
|
|||
Second
Quarter (through June 30, 2005)
|
$
|
27.00
|
$
|
9.00
|
|||
First
Quarter (through March 31, 2005)
|
$
|
56.00
|
$
|
6.00
|
Item 6. |
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
|
|
Increase
|
||||||||||||
2006
|
2005
|
Amount
|
Percentage
|
||||||||||
Revenue
|
$
|
77,093
|
$
|
0
|
$
|
77,093
|
100%
|
|
|
Decrease
|
||||||||||||
2006
|
2005
|
Amount
|
%
|
||||||||||
G&A
Expenses
|
$
|
819,958
|
$
|
681,731
|
$
|
137,377
|
20%
|
|
|
Decrease
|
||||||||||||
2006
|
2005
|
Amount
|
%
|
||||||||||
Marketing Expenses
|
$
|
4,146,574
|
$
|
5,605,613
|
$
|
1,459,039
|
26
|
|
|
Increase
|
||||||||||||
2006
|
2005
|
Amount
|
%
|
||||||||||
Selling
Expenses
|
$
|
3,740,287
|
$
|
1,412,253
|
$
|
2,328,034
|
160
|
|
|
Increase
|
||||||||||||
2006
|
2005
|
Amount
|
%
|
||||||||||
Other
Income
|
$
|
334,842
|
$
|
5,430
|
$
|
329,412
|
6166
|
|
|
Increase
|
||||||||||||
2006
|
2005
|
Amount
|
%
|
||||||||||
Interest
Expense
|
$
|
85,240
|
$
|
78,132
|
$
|
7,108
|
9
|
|
|
Increase
|
||||||||||||
2006
|
2005
|
Amount
|
%
|
||||||||||
Gain/Loss
on sale of Investments
|
$
|
(89,167)
|
$
|
0
|
$
|
89,167
|
100
|
|
Increase
|
|||||||||||||
2006
|
2005
|
Amount
|
%
|
||||||||||
Deferred
Net Revenue
|
$
|
448,027
|
$
|
172,453
|
$
|
275,574
|
259
|
|
Item 8. |
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
Item 8a. |
Controls
and Procedures
|
Item 9. |
Director,
Executive Officers, Promoters and Control Person; Corporate Governance;
Compliance with Section 16(a) of the Exchange Act.
|
NAME |
AGE
|
POSITION | ||
Howard Pearl |
57
|
President, Chief Executive Officer, Director. | ||
Walter Tatum |
49
|
Secretary, Chairman of the Board of Directors | ||
August A. DeAngelo II |
37
|
Director |
Item 10. |
Executive
Compensation
|
Name
and Principal Position (a)
|
Year
(b)
|
Salary
($)
(c)
|
Bonus
($)
(d)
|
Stock
Awards
($)
(e)
|
Option
Awards
($)
(f)
|
Non-Equity
Incentive Plan Compensation
($)
(g)
|
Nonqualified
Deferred
Compensation Earnings
($)
(h)
|
All
Other Compensation
($)
(i)
|
Total
($)
(j)
|
Jeff
Criswell
|
2006
2005
|
$150,000
$30,000
|
0
|
$12,675
$378,175
|
0
|
0
|
0
|
0
|
$162,675
$408,175
|
Walter
Tatum
|
2006
2005
|
$300,000
$300,000
|
0
|
$2,426,600
$325,000
|
0
|
0
|
0
|
0
|
$2,726,600
$625,000
|
Howard Pearl |
2006
2005
|
$70,000
$0
|
0
|
$771,550
$25,225
|
0
|
0
|
0
|
0
|
$841,550
$25,225
|
Item 11. |
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters.
|
Title
of Class
|
Name
of Beneficial
Owner
|
Amount
and Nature
of
Beneficial
Ownership
|
Percent
of
Class
|
Common Stock | Walter Tatum
70806
Halper Lake Dr.
Rancho
Mirage, CA 92270
|
10,452,000
|
17%
|
Common Stock |
Howard
Pearl
1191
Center Point Dr.
Henderson,
NV 89704
|
5,000,000
|
8%
|
Common Stock |
August
A. DeAngelo II
19162
Mesa Dr.
Villa
Park, CA 92861
|
5,000
|
*
|
All
officers and directors (three
persons)
|
15,457,000
|
25%
|
* |
Less
than one percent
|
Item 12. |
Certain
Relationships and Related
Transactions
|
Item 13. |
Exhibits
|
Exhibit No. |
Description
of Document
|
3.1(a)* |
Articles
of Incorporation
|
3.1(b)* |
Articles
of Amendment
|
3.2* |
Bylaws
|
4.0* |
Form
of Stock Certificate
|
4.1* |
Certificate
of Designation of Series B Convertible Preferred
Stock
|
4.2* |
Certificate
of Designation of Series C Convertible Preferred
Stock
|
10.1* | Share Exchange Agreement and Plan of Reorganization dated June 21, 2006 with Rhino Off Road Industries, Inc. |
31.1 |
32.1 |
* |
Incorporated
by reference
|
Item 14. |
Principal
Accountant Fees and
Services
|
2006
|
2005
|
||||||
Audit fees | $ | 50,000 | $ | 33,944 |
Rhino Outdoor International, Inc. | ||
|
|
|
Date: April 17, 2007 | By: | /s/ HOWARD PEARL |
|
||
Title: President and Chief Executive Officer |
|
|
|
Date: April 17, 2007 | By: | /s/ HOWARD PEARL |
|
||
Title: President and Chief Executive Officer |
|
Page
|
Report
of Independent Registered Public Accounting Firm
|
F-1
|
Consolidated Financial Statements: | |
Balance sheets |
F-2
|
Statements of operations |
F-3
|
Statements of stockholders' deficit |
F-4
|
Statements of cash flows |
F-5
|
Notes to the financial statements |
F-6
|
(A
Development Stage Company)
|
|||||||
CONSOLIDATED
BALANCE SHEETS
|
|||||||
December
31,
|
December
31,
|
||||||
2006
|
2005
|
||||||
ASSETS
|
|||||||
CURRENT
ASSETS
|
|||||||
Cash
|
$
|
1,862
|
$
|
-
|
|||
Accounts
receivable
|
-
|
7,500
|
|||||
Loans
receivable
|
-
|
15,000
|
|||||
Marketable
securities
|
14,400
|
-
|
|||||
Inventory,
net
|
123,490
|
-
|
|||||
Other
current assets
|
2,052
|
-
|
|||||
TOTAL
CURRENT ASSETS
|
141,804
|
22,500
|
|||||
OTHER ASSETS
|
|||||||
Plant,
property, and eqiupment, net
|
107,954
|
-
|
|||||
Goodwill
|
3,013,463
|
-
|
|||||
TOTAL
ASSETS
|
$
|
3,263,221
|
$
|
22,500
|
|||
LIABILITIES
AND STOCKHOLDERS' DEFICIT
|
|||||||
CURRENT
LIABILITIES
|
|||||||
Accounts
payable and accrued expenses
|
$
|
1,300,032
|
$
|
1,063,251
|
|||
Accrued
liabilities
|
1,332,860
|
971,762
|
|||||
Bank
overdraft
|
21,534
|
15,108
|
|||||
Lines
of credit
|
299,896
|
-
|
|||||
Notes
payable
|
294,192
|
294,192
|
|||||
Current
portion of long-term debt
|
40,485
|
-
|
|||||
Deferred
revenues and customer deposits
|
448,027
|
172,453
|
|||||
Other
current liabilities
|
400,000
|
-
|
|||||
Related
party payables
|
573,814
|
1,226,161
|
|||||
TOTAL
CURRENT LIABILITIES
|
4,710,840
|
3,742,927
|
|||||
LONG-TERM
LIABILITIES
|
|||||||
Bank
indebtedness
|
37,682
|
-
|
|||||
Vehicle
loans, net current portion
|
22,047
|
-
|
|||||
TOTAL
LONG-TERM LIABILITIES
|
59,729
|
-
|
|||||
TOTAL
LIABILITIES
|
4,770,569
|
3,742,927
|
|||||
COMMITMENTS
AND CONTINGENCIES
|
-
|
-
|
|||||
STOCKHOLDERS'
DEFICIT
|
|||||||
Preferred
stock, $0.001 par value; 5,000,000 shares authorized
|
|||||||
Series
A - 835,660 shares issued and outstanding
|
836
|
836
|
|||||
Series
B - 1,000,000 shares issued and outstanding
|
1,000
|
1,000
|
|||||
Series
C - 2,250,000 shares issued and outstanding
|
2,250
|
-
|
|||||
Common
stock, $0.001 par value; 500,000,000 shares
authorized,
|
|||||||
50,748,709
and 1,233,518 shares issued and oustanding,
|
|||||||
respectively
|
50,749
|
1,233
|
|||||
Additional
paid-in capital
|
35,502,478
|
23,295,020
|
|||||
Accumulated
deficit prior to current development stage
|
(19,234,546
|
)
|
(19,234,546
|
)
|
|||
Accumulated
deficit in development stage
|
(17,394,515
|
)
|
(7,783,970
|
)
|
|||
Accumulated
comprehensive income (loss)
|
(435,600
|
)
|
-
|
||||
Total
Stockholders' Deficit
|
(1,507,348
|
)
|
(3,720,427
|
)
|
|||
TOTAL
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
$
|
3,263,221
|
$
|
22,500
|
(A
Development Stage Company)
|
||||||||||
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
||||||||||
|
||||||||||
From
|
||||||||||
Inception
of
|
||||||||||
Development Stage
|
||||||||||
Years
Ended
|
(January
1, 2005)
|
|||||||||
December
31
|
December
31
|
to
|
||||||||
2006
|
2005
|
September
30, 2006
|
||||||||
REVENUES
|
$
|
77,093
|
$
|
-
|
$
|
77,093
|
||||
-
|
||||||||||
COST
OF SALES
|
100,240
|
-
|
100,240
|
|||||||
Gross
Profit (Loss)
|
(23,147
|
)
|
-
|
(23,147
|
)
|
|||||
OPERATING
EXPENSES
|
||||||||||
General
and administrative
|
819,958
|
681,731
|
1,501,690
|
|||||||
Depreciation
expense
|
18,284
|
-
|
18,284
|
|||||||
Management
fees
|
1,022,729
|
-
|
1,022,729
|
|||||||
Marketing
expenses
|
4,146,574
|
5,605,613
|
9,752,187
|
|||||||
Selling
expenses
|
3,740,287
|
1,412,253
|
5,152,540
|
|||||||
TOTAL
OPERATING EXPENSES
|
9,747,873
|
7,699,597
|
17,447,430
|
|||||||
LOSS
FROM OPERATIONS
|
(9,770,980
|
)
|
(7,699,597
|
)
|
(17,470,577
|
)
|
||||
OTHER
INCOME (EXPENSES)
|
||||||||||
Other
income
|
334,842
|
5,430
|
340,272
|
|||||||
Gain
on forgiveness of debt
|
-
|
2,500
|
2,500
|
|||||||
Interest
expense
|
(85,240
|
)
|
(78,132
|
)
|
(163,372
|
)
|
||||
Loss
on sale of investment
|
(89,167
|
)
|
-
|
(89,167
|
)
|
|||||
Loss
on abandonment of assets
|
-
|
(14,171
|
)
|
(14,171
|
)
|
|||||
TOTAL
OTHER INCOME (EXPENSES)
|
160,435
|
(84,373
|
)
|
76,062
|
||||||
LOSS
BEFORE TAXES
|
(9,610,545
|
)
|
(7,783,970
|
)
|
(17,394,515
|
)
|
||||
INCOME
TAXES
|
-
|
-
|
-
|
|||||||
NET
LOSS
|
(9,610,545
|
)
|
(7,783,970
|
)
|
(17,394,515
|
)
|
||||
OTHER
COMPREHENSIVE INCOME
|
||||||||||
Unrealized
loss on marketable securities
|
(435,600
|
)
|
-
|
(435,600
|
)
|
|||||
COMPREHENSIVE
LOSS
|
$
|
(10,046,145
|
)
|
$
|
(7,783,970
|
)
|
$
|
(17,830,115
|
)
|
|
NET
LOSS PER COMMON SHARE,
|
||||||||||
BASIC
AND DILUTED
|
$
|
(0.53
|
)
|
$
|
(13.95
|
)
|
||||
WEIGHTED
AVERAGE NUMBER OF
|
||||||||||
COMMON
STOCK SHARES
|
||||||||||
OUTSTANDING,
BASIC AND DILUTED
|
18,025,916
|
557,891
|
(A
Development Stage Company)
|
|||||||||||||||||||||||||
CONSOLIDATED
STATEMENT OF STOCKHOLDERS' DEFICIT
|
|||||||||||||||||||||||||
Accumulated
|
|||||||||||||||||||||||||
Convertible
Preferred Stock
|
Common
Stock
|
Additional
Paid-in |
Deficit
|
Other
Comprehensive
|
|||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Accumulated
|
Loss
|
Totals
|
||||||||||||||||||
Balance,
December 31, 2004
|
835,660
|
$
|
836
|
232,258
|
$
|
232
|
$
|
16,193,129
|
$
|
(19,234,546
|
)
|
$
|
-
|
$
|
(3,040,349
|
)
|
|||||||||
Shares
issued for consulting expense
|
-
|
-
|
996,260
|
996
|
6,945,396
|
-
|
-
|
6,946,392
|
|||||||||||||||||
Shares
issued for debt
|
-
|
-
|
5,000
|
5
|
57,495
|
-
|
-
|
57,500
|
|||||||||||||||||
Shares
issued in exchange for compensation
|
1,000,000
|
1,000
|
-
|
-
|
99,000
|
-
|
-
|
100,000
|
|||||||||||||||||
Net
loss for year ending December 31, 2005
|
-
|
-
|
-
|
-
|
-
|
(7,783,970
|
)
|
-
|
(7,783,970
|
)
|
|||||||||||||||
Balance,
December 31, 2005
|
1,835,660
|
1,836
|
1,233,518
|
1,233
|
23,295,020
|
(27,018,516
|
)
|
-
|
(3,720,427
|
)
|
|||||||||||||||
Shares
issued for management and consulting fees
|
-
|
-
|
245,000
|
245
|
489,755
|
-
|
-
|
490,000
|
|||||||||||||||||
Shares
issued for accrued liabilities
|
-
|
-
|
205,000
|
205
|
409,795
|
-
|
-
|
410,000
|
|||||||||||||||||
Shares
issued for acquisition of subsidiary
|
1,650,000
|
1,650
|
-
|
-
|
1,648,350
|
-
|
-
|
1,650,000
|
|||||||||||||||||
-
|
|||||||||||||||||||||||||
Shares
issued for accrued management fees
|
600,000
|
600
|
-
|
-
|
599,400
|
-
|
-
|
600,000
|
|||||||||||||||||
-
|
|||||||||||||||||||||||||
Shares
issued for related party payable
|
-
|
-
|
5,200,000
|
5,200
|
1,228,031
|
-
|
-
|
1,233,231
|
|||||||||||||||||
-
|
|||||||||||||||||||||||||
Shares
issued for marketing and selling expenses
|
-
|
-
|
43,865,191
|
43,866
|
7,832,127
|
-
|
-
|
7,875,993
|
|||||||||||||||||
-
|
|||||||||||||||||||||||||
Net
loss for year ending December 31, 2006
|
-
|
-
|
-
|
-
|
-
|
(9,610,545
|
)
|
-
|
(9,610,545
|
)
|
|||||||||||||||
Unrealized
loss on investments
|
-
|
-
|
-
|
-
|
-
|
-
|
(435,600
|
)
|
(435,600
|
)
|
|||||||||||||||
Balance,
December 31, 2006
|
4,085,660
|
$
|
4,086
|
50,748,709
|
$
|
50,749
|
$
|
35,502,478
|
$
|
(36,629,061
|
)
|
$
|
(435,600
|
)
|
$
|
(1,507,348
|
)
|
(A
Development Stage Company)
|
||||||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
||||||||||
|
||||||||||
From
|
||||||||||
Inception
of
|
||||||||||
Development
Stage
|
||||||||||
Years
Ended
|
(January
1, 2005)
|
|||||||||
December
31
|
December
31,
|
to
|
||||||||
2006
|
2005
|
June
30, 2006
|
||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||
Net
loss
|
$
|
(9,610,545
|
)
|
$
|
(7,783,970
|
)
|
$
|
(17,394,515
|
)
|
|
Adjustments
to reconcile net loss to net cash
|
||||||||||
used
by operating activities:
|
||||||||||
Common
stock issued for accrued wages
|
410,000
|
100,000
|
510,000
|
|||||||
Common
stock issued for compensation and services
|
490,000
|
6,946,392
|
7,436,392
|
|||||||
Reserve
for issuance of issuance of preferred stock
|
400,000
|
-
|
400,000
|
|||||||
Preferred
shares issued for accrued management fees
|
600,000
|
-
|
600,000
|
|||||||
Forgiveness
of debt
|
-
|
(2,500
|
)
|
(2,500
|
)
|
|||||
Bad
debt expense
|
20,000
|
-
|
20,000
|
|||||||
Amortization
of deferred revenues
|
(328,125
|
)
|
-
|
(328,125
|
)
|
|||||
Common
stock issued for marketing and selling expenses
|
7,875,993
|
-
|
7,875,993
|
|||||||
Loss
on sale of investment
|
89,167
|
-
|
89,167
|
|||||||
Loss
on abandonment of assets
|
-
|
14,171
|
14,171
|
|||||||
Depreciation
|
18,284
|
-
|
18,284
|
|||||||
(Increase)
decrease in:
|
||||||||||
Inventories
|
59,720
|
-
|
59,720
|
|||||||
Increase
(decrease) in:
|
||||||||||
Accounts
payable and accrued expenses
|
123,185
|
194,029
|
317,214
|
|||||||
Accrued
liabilities
|
(386,213
|
)
|
318,626
|
(67,587
|
)
|
|||||
Deferred
revenues and customer deposits
|
78,335
|
172,453
|
250,788
|
|||||||
Net
cash provided (used) by operating activities
|
(160,199
|
)
|
(40,799
|
)
|
(200,998
|
)
|
||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||
Increase
from loans receivable
|
-
|
(7,500
|
)
|
(7,500
|
)
|
|||||
Cash
acquired in acquisition
|
18,578
|
-
|
18,578
|
|||||||
Cash
received from sale of investments
|
23,333
|
-
|
23,333
|
|||||||
Net
cash provided (used) by investing activities
|
41,911
|
(7,500
|
)
|
34,411
|
||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||
Advances
from related parties
|
133,177
|
39,606
|
172,783
|
|||||||
Increase
in bank overdrafts
|
6,426
|
(6,415
|
)
|
11
|
||||||
Decrease
in lines of credit
|
(54
|
)
|
(54
|
)
|
||||||
Decrease
in bank indebtness
|
(12,410
|
)
|
15,108
|
2,698
|
||||||
Decrease
in vehicle loans
|
(6,989
|
)
|
-
|
(6,989
|
)
|
|||||
Net
cash provided by financing activities
|
120,150
|
48,299
|
168,449
|
|||||||
Change
in cash
|
1,862
|
-
|
1,862
|
|||||||
Cash,
beginning of period
|
-
|
-
|
-
|
|||||||
Cash,
end of period
|
$
|
1,862
|
$
|
-
|
$
|
1,862
|
||||
SUPPLEMENTAL
CASH FLOW INFORMATION:
|
||||||||||
Interest
paid
|
$
|
15,796
|
$
|
-
|
$
|
21,298
|
||||
Income
taxes paid
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
NON-CASH
INVESTING AND FINANCING ACTIVITIES:
|
||||||||||
Common
stock issued for debt
|
$
|
-
|
$
|
-
|
$
|
57,500
|
||||
Common
stock issued for accrued wages
|
$
|
410,000
|
$
|
-
|
$
|
550,000
|
||||
Preferred
shares issued for subsidiary
|
$
|
1,650,000
|
$
|
-
|
$
|
1,650,000
|
||||
Shares
issued for related party payable
|
$
|
1,233,231
|
$ | $ |
|
December
31,
|
December
31,
|
|||||
|
2006
|
2005
|
|||||
Raw
materials and work-in-process
|
$
|
57,954
|
$
|
-
|
|||
Finished
goods
|
65,536
|
-
|
|||||
Total
Inventory
|
$
|
123,490
|
$
|
-
|
December
31,
|
December
31,
|
||||||
2006
|
2005
|
||||||
Plant
assets
|
$
|
120,234
|
$
|
-
|
|||
Office
furniture
|
4,858
|
-
|
|||||
Leasehold
improvements
|
1,146
|
-
|
|||||
126,238
|
-
|
||||||
Less
accumulated depreciation
|
(18,284
|
)
|
-
|
||||
Net,
property and equipment
|
$
|
107,954
|
$
|
-
|
|
December
31, 2006
|
December
31, 2005
|
|||||
Net
operating loss carryforward:
|
$
|
36,600,000
|
$
|
27,018,000
|
|||
Deferred
tax asset
|
$
|
12,450,000
|
$
|
9,148,000
|
|||
Deferred
tax asset valuation allowance
|
(12,450,000
|
)
|
(9,148,000
|
)
|
|||
Net
deferred tax asset
|
$
|
-
|
$
|
-
|
Year
Ending:
|
||||
December 31, 2007 |
$
|
14,254
|
||
December 31, 2008 |
14,643
|
|||
December 31, 2009 |
7,405
|
|||
December 31, 2010 |
-
|
|||
December
31,
2011
|
-
|
|||
Remaining
principal on vehicles
|
$
|
36,302
|
Year
Ending:
|
||||
December 31, 2007 |
$
|
26,231
|
||
December 31, 2008 |
28,267
|
|||
December 31, 2009 |
9,415
|
|||
December 31, 2010 |
-
|
|||
December
31,
2011
|
-
|
|||
Remaining
principal note payable with Bank of Nevada
|
$
|
63,913
|
Fair
value:
|
|
|
|
|
Luvoo,
Inc
|
|
$
|
14,400
|
|
Total
fair value
|
|
|
14,400
|
|
Gross
unrealized (loss)
|
|
|
(435,600
|
)
|
Cost
|
|
$
|
464,400
|
|
Cash
|
$
|
18,578
|
||
Accounts
receivable
|
5,000
|
|||
Marketable
securities
|
562,500
|
|||
Inventories
|
183,210
|
|||
Plant,
property & equipment, net
|
126,238
|
|||
Other
assets
|
2,052
|
|||
Total
Assets Acquired
|
897,578
|
|||
Current
liabilities
|
(2,186,533
|
)
|
||
Other
liabilities
|
(74,508
|
)
|
||
Total
Liabilities Assumed
|
(2,361,041
|
)
|
||
Net
liabilities acquired in excess of assets
|
$
|
(1,363,463
|
)
|
|
Cost
of acquisition
|
$
|
1,650,000
|
||
Net
liabilities assumed
|
1,363,463
|
|||
Goodwill
|
$
|
3,013,463
|
RHINO
OUTDOOR INTERNATIONAL, INC.
|
||||||||||||||||
(A
Development Stage Company)
|
||||||||||||||||
CONSOLIDATED
BALANCE SHEETS - PROFORMA
|
||||||||||||||||
PROFORMA
|
||||||||||||||||
Rhino
Outdoor
|
Rhino
Off Roads
|
Rhino
Outdoor
|
||||||||||||||
International,
Inc.
|
Industries,
Inc.
|
Eliminations
|
International,
Inc.
|
|||||||||||||
December
31,
|
December
31,
|
December
31,
|
||||||||||||||
2005
|
2005
|
2005
|
||||||||||||||
(unaudited)
|
||||||||||||||||
ASSETS
|
||||||||||||||||
CURRENT
ASSETS
|
||||||||||||||||
Cash
|
$
|
-
|
$
|
4,137
|
$
|
-
|
$
|
4,137
|
||||||||
Accounts
receivable
|
7,500
|
5,000
|
(7,500
|
)
|
a
|
5,000
|
||||||||||
Loans
receivable
|
15,000
|
-
|
(15,000
|
)
|
a
|
-
|
||||||||||
Inventory,
net
|
-
|
287,747
|
-
|
287,747
|
||||||||||||
Other
current assets
|
-
|
1,202
|
-
|
1,202
|
||||||||||||
TOTAL
CURRENT ASSETS
|
22,500
|
298,086
|
(22,500
|
)
|
298,086
|
|||||||||||
OTHER
ASSETS
|
||||||||||||||||
Plant,
property, and eqiupment, net
|
-
|
143,343
|
-
|
143,343
|
||||||||||||
Goodwill
|
-
|
-
|
2,201,700
|
b
|
2,201,700
|
|||||||||||
TOTAL
ASSETS
|
$
|
22,500
|
$
|
441,429
|
$
|
2,179,200
|
$
|
2,643,129
|
||||||||
LIABILITIES
AND STOCKHOLDERS' DEFICIT
|
||||||||||||||||
CURRENT
LIABILITIES
|
||||||||||||||||
Accounts
payable and accrued expenses
|
$
|
1,063,251
|
$
|
105,890
|
$
|
-
|
$
|
1,169,141
|
||||||||
Accrued
liabilities
|
971,762
|
613,176
|
-
|
1,584,938
|
||||||||||||
Bank
overdraft
|
15,108
|
-
|
-
|
15,108
|
||||||||||||
Lines
of credit
|
-
|
299,950
|
-
|
299,950
|
||||||||||||
Notes
payable
|
294,192
|
341,114
|
(22,500
|
)
|
a
|
612,806
|
||||||||||
Current
portion of long-term debt
|
-
|
40,404
|
-
|
40,404
|
||||||||||||
Deferred
revenues and customer deposits
|
172,453
|
5,014
|
-
|
177,467
|
||||||||||||
Related
party payables
|
1,226,161
|
-
|
-
|
1,226,161
|
||||||||||||
TOTAL
CURRENT LIABILITIES
|
3,742,927
|
1,405,548
|
(22,500
|
)
|
5,125,975
|
|||||||||||
LONG-TERM
LIABILITIES
|
||||||||||||||||
Bank
indebtedness
|
-
|
58,131
|
-
|
58,131
|
||||||||||||
Vehicle
loans, net current portion
|
-
|
35,215
|
-
|
35,215
|
||||||||||||
Related
party payables
|
-
|
1,144,235
|
-
|
1,144,235
|
||||||||||||
TOTAL
LONG-TERM LIABILITIES
|
-
|
1,237,581
|
-
|
1,237,581
|
||||||||||||
TOTAL
LIABILITIES
|
3,742,927
|
2,643,129
|
(22,500
|
)
|
6,363,556
|
|||||||||||
COMMITMENTS
AND CONTINGENCIES
|
-
|
-
|
-
|
-
|
||||||||||||
STOCKHOLDERS'
DEFICIT
|
||||||||||||||||
Preferred
stock, $0.001 par value; 5,000,000 shares authorized
|
||||||||||||||||
Series
A - 835,660 shares issued and outstanding
|
836
|
52
|
(52
|
)
|
b
|
836
|
||||||||||
Series
B - 1,000,000 shares issued and outstanding
|
1,000
|
-
|
-
|
1,000
|
||||||||||||
Series
C - 2,250,000 shares issued and outstanding
|
-
|
-
|
-
|
-
|
||||||||||||
Common
stock, $0.001 par value; 500,000,000 shares
authorized,
|
||||||||||||||||
50,748,709
and 1,233,518 shares issued and oustanding,
|
||||||||||||||||
respectively
|
1,233
|
188
|
(188
|
)
|
b |
1,233
|
||||||||||
Additional
paid-in capital
|
23,295,020
|
599,760
|
(599,760
|
)
|
b |
23,295,020
|
||||||||||
Accumulated
deficit prior to current development stage
|
(19,234,546
|
)
|
(2,801,700
|
)
|
2,801,700
|
b |
(19,234,546
|
)
|
||||||||
Accumulated
deficit in development stage
|
(7,783,970
|
)
|
-
|
-
|
(7,783,970
|
)
|
||||||||||
Total
Stockholders' Deficit
|
(3,720,427
|
)
|
(2,201,700
|
)
|
2,201,700
|
(3,720,427
|
)
|
|||||||||
TOTAL
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
$
|
22,500
|
$
|
441,429
|
$
|
2,179,200
|
$
|
2,643,129
|
RHINO
OUTDOOR INTERNATIONAL, INC.
|
|||||||||||||
(A
Development Stage Company)
|
|||||||||||||
CONSOLIDATED
STATEMENTS OF OPERATIONS - PROFORMA
|
|||||||||||||
Rhino
Off Roads
|
|||||||||||||
Industries,
Inc.
|
PROFORMA
|
||||||||||||
Rhino
Outdoor
|
For
the
|
Rhino
Outdoor
|
|||||||||||
International,
Inc.
|
Period
from
|
International,
Inc.
|
|||||||||||
Years
Ended
|
January
1, 2006
|
Years
Ended
|
|||||||||||
December
31
|
through
|
December
31
|
|||||||||||
2006
|
June
21, 2006
|
Eliminations
|
2006
|
||||||||||
(unaudited)
|
(unaudited)
|
||||||||||||
REVENUES
|
$
|
77,093
|
$
|
102,210
|
$
|
-
|
$
|
179,303
|
|||||
COST
OF SALES
|
100,240
|
188,550
|
-
|
288,790
|
|||||||||
Gross
Profit (Loss)
|
(23,147
|
)
|
(86,340
|
)
|
-
|
(109,487
|
)
|
||||||
OPERATING
EXPENSES
|
|||||||||||||
General
and administrative
|
819,959
|
89,772
|
-
|
909,731
|
|||||||||
Research
and development
|
-
|
1,907
|
-
|
1,907
|
|||||||||
Depreciation
expense
|
18,284
|
16,254
|
-
|
34,538
|
|||||||||
Management
fees
|
1,022,729
|
128,604
|
-
|
1,151,333
|
|||||||||
Marketing
expenses
|
4,146,574
|
5,368
|
-
|
4,151,942
|
|||||||||
Selling
expenses
|
3,740,287
|
-
|
-
|
3,740,287
|
|||||||||
TOTAL
OPERATING EXPENSES
|
9,747,833
|
241,905
|
-
|
9,989,738
|
|||||||||
LOSS
FROM OPERATIONS
|
(9,770,980
|
)
|
(328,245
|
)
|
-
|
(10,099,225
|
)
|
||||||
OTHER
INCOME (EXPENSES)
|
|||||||||||||
Other
income
|
334,842
|
32,813
|
-
|
367,655
|
|||||||||
Gain
on forgiveness of debt
|
-
|
-
|
-
|
-
|
|||||||||
Interest
expense
|
(85,240
|
)
|
(42,271
|
)
|
-
|
(127,511
|
)
|
||||||
Loss
on sale of investment
|
(89,167
|
)
|
-
|
-
|
(89,167
|
)
|
|||||||
Loss
on abandonment of assets
|
-
|
-
|
-
|
-
|
|||||||||
TOTAL
OTHER INCOME (EXPENSES)
|
160,435
|
(9,458
|
)
|
-
|
150,977
|
||||||||
LOSS
BEFORE TAXES
|
(9,610,545
|
)
|
(337,703
|
)
|
-
|
(9,948,248
|
)
|
||||||
INCOME
TAXES
|
-
|
-
|
-
|
-
|
|||||||||
NET
LOSS
|
(9,610,545
|
)
|
(337,703
|
)
|
-
|
(9,948,248
|
)
|
||||||
OTHER
COMPREHENSIVE INCOME
|
|||||||||||||
Unrealized
loss on marketable securities
|
(435,600
|
)
|
-
|
-
|
(435,600
|
)
|
|||||||
COMPREHENSIVE
LOSS
|
$
|
(10,046,145
|
)
|
$
|
(337,703
|
)
|
$
|
-
|
$
|
(10,383,848
|
)
|
||
NET
LOSS PER COMMON SHARE,
|
|||||||||||||
BASIC
AND DILUTED
|
$
|
(0.55
|
)
|
||||||||||
WEIGHTED
AVERAGE NUMBER OF
|
|||||||||||||
COMMON
STOCK SHARES
|
|||||||||||||
OUTSTANDING,
BASIC AND DILUTED
|
18,025,916
|
RHINO
OUTDOOR INTERNATIONAL, INC.
|
|||||||||||||
(A
Development Stage Company)
|
|||||||||||||
CONSOLIDATED
STATEMENTS OF OPERATIONS - PROFORMA
|
|||||||||||||
PROFORMA
|
|||||||||||||
Rhino
Outdoor
|
Rhino
Off Roads
|
Rhino
Outdoor
|
|||||||||||
International,
Inc.
|
Industries,
Inc.
|
International,
Inc.
|
|||||||||||
Years
Ended
|
Years
Ended
|
Years
Ended
|
|||||||||||
December
31
|
December
31
|
December
31
|
|||||||||||
2005
|
2005
|
Eliminations
|
2005
|
||||||||||
(unaudited)
|
|||||||||||||
|
|||||||||||||
REVENUES
|
$
|
-
|
$
|
416,482
|
$
|
-
|
$
|
416,482
|
|||||
COST
OF SALES
|
-
|
659,854
|
-
|
659,854
|
|||||||||
Gross
Profit (Loss)
|
-
|
(243,372
|
)
|
-
|
(243,372
|
)
|
|||||||
OPERATING
EXPENSES
|
|||||||||||||
General
and administrative
|
681,731
|
265,255
|
-
|
946,986
|
|||||||||
Research
and development
|
-
|
26,950
|
26,950
|
||||||||||
Depreciation
expense
|
-
|
30,052
|
-
|
30,052
|
|||||||||
Management
fees
|
-
|
327,041
|
-
|
327,041
|
|||||||||
Marketing
expenses
|
5,605,613
|
56,730
|
-
|
5,662,343
|
|||||||||
Selling
expenses
|
1,412,253
|
-
|
-
|
1,412,253
|
|||||||||
TOTAL
OPERATING EXPENSES
|
7,699,597
|
706,028
|
-
|
8,405,625
|
|||||||||
LOSS
FROM OPERATIONS
|
(7,699,597
|
)
|
(949,400
|
)
|
-
|
(8,648,997
|
)
|
||||||
OTHER
INCOME (EXPENSES)
|
|||||||||||||
Other
income
|
5,430
|
-
|
-
|
5,430
|
|||||||||
Gain
on forgiveness of debt
|
2,500
|
-
|
-
|
2,500
|
|||||||||
Interest
expense
|
(78,132
|
)
|
(97,928
|
)
|
-
|
(176,060
|
)
|
||||||
Loss
on sale of investment
|
-
|
-
|
-
|
-
|
|||||||||
Impairment
of assets
|
-
|
(6,298
|
)
|
(6,298
|
)
|
||||||||
Loss
on abandonment of assets
|
(14,171
|
)
|
-
|
-
|
(14,171
|
)
|
|||||||
TOTAL
OTHER INCOME (EXPENSES)
|
(84,373
|
)
|
(104,226
|
)
|
-
|
(188,599
|
)
|
||||||
LOSS
BEFORE TAXES
|
(7,783,970
|
)
|
(1,053,626
|
)
|
-
|
(8,837,596
|
)
|
||||||
INCOME
TAXES
|
-
|
-
|
-
|
-
|
|||||||||
NET
LOSS
|
(7,783,970
|
)
|
(1,053,626
|
)
|
-
|
(8,837,596
|
)
|
||||||
OTHER
COMPREHENSIVE INCOME
|
|||||||||||||
Unrealized
loss on marketable securities
|
-
|
-
|
-
|
-
|
|||||||||
COMPREHENSIVE
LOSS
|
$
|
(7,783,970
|
)
|
$
|
(1,053,626
|
)
|
$
|
-
|
$
|
(8,837,596
|
)
|
||
NET
LOSS PER COMMON SHARE,
|
|||||||||||||
BASIC
AND DILUTED
|
$
|
(15.84
|
)
|
||||||||||
WEIGHTED
AVERAGE NUMBER OF
|
|||||||||||||
COMMON
STOCK SHARES
|
|||||||||||||
OUTSTANDING,
BASIC AND DILUTED
|
557,891
|