Quarterly Report (10-q)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One) 

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the quarterly period ended June 30, 2022

 

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the transition period from ___________ to __________

 

Commission File No. 000-56301

 

OUTDOOR SPECIALTY PRODUCTS, INC.

(Exact name of registrant as specified in charter)

 

NEVADA		46-4854952
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

 

3842 Quail Hollow Drive, Salt Lake City, Utah		84109
(Address of principal executive offices)		(Zip Code)

 

[phone]

Registrant’s telephone number, including area code)

 

 

 

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

 

Securities registered pursuant to Section 12(b) of the Act: None.

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

 

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging Growth Company	☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any news or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

 

The number of shares outstanding of each of the issuer’s classes of common stock as of July 25, 2022 is 5,284,318.

 

 

 

 

 

 

OUTSIDE SPECIALTY PRODUCTS, INC.

FORM 10-Q

 

FOR THE NINE MONTHS ENDED JUNE 30, 2022

 

Special Note Regarding Forward-Looking Statements		ii
PART I - Financial Information
Item 1.	Financial Statements (Unaudited)	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	7
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	9
Item 4.	Controls and Procedures	9
PART II - Other Information
Item 1.	Legal Proceedings	10
Item 1A.	Risk Factors	10
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	10
Item 3.	Defaults upon Senior Securities	10
Item 4.	Mine Safety Disclosures	10
Item 5.	Other Information	10
Item 6.	Exhibits	10
Signatures		11

 

i

 

 

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

Certain statements and information in this report on Form 10-Q may constitute forward-looking statements. The words believe, may, potentially, estimate, continue, anticipate, intend, could, would, project, plan, expect and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning the following:

 

●

our future financial and operating results;

 

●

our business strategy;

 

●

our intentions, expectations and beliefs regarding anticipated growth, market penetration and trends in our business;

 

●

the effects of market conditions on our stock price and operating results;

 

●

our ability to maintain our competitive technological advantages against competitors in our industry;

 

●

our ability to timely and effectively adapt our existing technology and have our technology solutions gain market acceptance;

 

●

our ability to introduce new products and bring them to market in a timely manner;

 

●

our ability to maintain, protect and enhance our intellectual property;

 

●

the effects of increased competition in our market and our ability to compete effectively;

 

●

costs associated with defending intellectual property infringement and other claims;

 

●

our expectations concerning our relationships with customers and other third parties;

 

●

the impact of outbreaks, and threat or perceived threat of outbreaks, of epidemics and pandemics, including, without limitation, the coronavirus outbreak, on our sourcing and manufacturing operations as well as consumer spending;

 

●

risks associated with sourcing and manufacturing; and

 

●

our ability to comply with evolving legal standards and regulations, particularly concerning requirements for being a public company and United States export regulations.

 

These forward-looking statements speak only as of the date of this Form 10-Q and are subject to uncertainties, assumptions, and business and economic risks. As such, our actual results could differ materially from those set forth in the forward-looking statements. Moreover, we operate in a competitive and changing environment, and new risks emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this Form 10-Q may not occur, and actual results could differ materially and adversely from those anticipated or implied in our forward-looking statements.

 

You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this Form 10-Q to conform these statements to actual results or to changes in our expectations, except as required by law.

 

You should read this Report on Form 10-Q and the documents that we have filed with the SEC as exhibits hereto with the understanding that our actual future results and circumstances may be materially different from what we expect.

 

ii

 

 

PART I - FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

Index to Financial Statements

 

Condensed Balance Sheets (Unaudited) at June 30, 2022 and September 30, 2021	2
Condensed Statements of Operations (Unaudited) for the Three and Nine Months Ended June 30, 2022 and 2021	3
Condensed Statements of Changes in Stockholders’ Deficit (Unaudited) for the Nine Months Ended June 30, 2022 and 2021	4
Condensed Statements of Cash Flow (Unaudited) for the Nine Months Ended June 30, 2022 and 2021	5
Notes to the Unaudited Condensed Financial Statements.	6

 

1

 

 

OUTDOOR SPECIALTY PRODUCTS, INC.

Balance Sheets

(Unaudited)

 

		June 30, 2022				September 30, 2021
Assets:
Current Assets:
Cash		$	355			$	6,168
Prepaid expense			1,833				458
Inventory			4,656				4,684
Total current assets			6,844				11,310
Other Assets:
Patents, net			4,693				5,000
Total Assets		$	11,537			$	16,310
Liabilities and Stockholders’ Deficit:
Current Liabilities:
Accounts payable		$	-			$	414
Accrued interest			1,569				409
Line of credit – related party			54,137				30,250
Total Liabilities:			55,706				31,073
Stockholders’ Deficit:
Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding			-				-
Common stock, $0.001 par value, 190,000,000 shares authorized, 5,284,318 shares issued and outstanding			5,285				5,285
Additional paid-in capital			99,232				99,232
Accumulated deficit			(148,686	)			(119,280	)
Total Stockholders’ Deficit			(44,169	)			(14,763	)
Total Liabilities and Stockholders’ Deficit		$	11,537			$	16,310

 

The accompanying notes are an integral part of these unaudited condensed financial statements.

 

2

 

 

OUTDOOR SPECIALTY PRODUCTS, INC.

Statements of Operations

(Unaudited)

 

		Three Months Ended June 30, 2022				Three Months Ended June 30, 2021				Nine Months Ended June 30, 2022				Nine Months Ended June 30, 2021
Revenue		$	117			$	42			$	264			$	193
Cost of sales			12				4				27				17
Gross profit			105				38				237				176
Operating Expenses:
General and administrative			6,854				10,025				28,483				27,270
Total Operating Expenses			6,854				10,025				28,483				27,270
Loss from Operations			(6,749	)			(9,987	)			(28,246	)			(27,094	)
Other Expense
Interest expense			(459	)			(112	)			(1,160	)			(207	)
Net Loss		$	(7,208	)		$	(10,099	)		$	(29,406	)		$	(27,301	)
Net loss per share of common stock- basic and diluted		$	(0.00	)		$	(0.00	)		$	(0.01	)		$	(0.01	)
Weighted average number of common shares outstanding – basic and diluted			5,284,318				5,284,318				5,284,318				5,284,318

 

The accompanying notes are an integral part of these unaudited condensed financial statements.

 

3

 

 

OUTDOOR SPECIALTY PRODUCTS, INC.

Statements of Changes in Stockholders’ Deficit

For the nine months ended June 30, 2022 and 2021

(Unaudited)

 

		Common Stock								Additional Paid-in				Accumulated				Total Stockholders’
		Shares				Amount				Capital				Deficit				Deficit
Balance, September 30, 2020			5,285,747			$	5,286			$	99,731			$	(79,379	)		$	25,638
Net loss for the three months ended December 31, 2020			-				-				-				(1,797	)			(1,797	)
Balance December 31, 2020			5,285,747			$	5,286			$	99,731			$	(81,176	)		$	23,841
Net loss for the three months ended March 31, 2021			-				-				-				(15,405	)			(15,405	)
Balance, March 31, 2021			5,285,747			$	5,286			$	99,731			$	(96,581	)		$	8,436
Dissenter shares repurchased and cancelled			(1,429	)			(1	)			(499	)			-				(500	)
Net loss for the three months ended June 30, 2021			-				-				-				(10,099	)			(10,099	)
Balance, June 30, 2021			5,284,318			$	5,285			$	99,232			$	(106,680	)		$	(2,163	)

 

		Common Stock								Additional Paid-in				Accumulated				Total Stockholders’
		Shares				Amount				Capital				Deficit				Deficit
Balance, September 30, 2021			5,284,318			$	5,285			$	99,232			$	(119,280	)		$	(14,763	)
Net loss for the three months ended December 31, 2021			-				-				-				(8,904	)			(8,904	)
Balance December 31, 2021			5,284,318			$	5,285			$	99,232			$	(128,184	)		$	(23,667	)
Net loss for the three months ended March 31, 2022			-				-				-				(13,294	)			(13,294	)
Balance, March 31, 2022			5,284,318			$	5,285			$	99,232			$	(141,478	)		$	(36,961	)
Net loss for the three months ended June 30, 2022			-				-				-				(7,208	)			(7,208	)
Balance, June 30, 2022			5,284,318			$	5,285			$	99,232			$	(148,686	)		$	(44,169	)

 

The accompanying notes are an integral part of these unaudited condensed financial statements.

 

4

 

 

OUTDOOR SPECIALTY PRODUCTS, INC.
STATEMENTS OF CASH FLOWS

(Unaudited)

 

		For the Nine Months Ended
		June 30, 2022				June 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss		$	(29,406	)		$	(27,301	)
Adjustments to Reconcile Net Loss
To Net Cash Used by Operating Activities
Depreciation and Amortization			307				874
Changes in Operating Assets and Liabilities:
Increase in prepaid expense			(1,375	)			(1,416	)
Decrease in inventory			28				17
(Decrease) increase in accounts payable			(414	)			2,736
Increase in accrued interest			1,160				207
Net Cash Used by Operating Activities			(29,700	)			(24,883	)
CASH FLOWS FROM INVESTING ACTIVITIES			-				-
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from line of credit - related party			23,887				12,750
Repurchase of common shares			-				(500	)
Net Cash Provided by Financing Activities			23,887				12,250
Net Decrease in Cash			(5,813	)			(12,633	)
Cash at Beginning of Period			6,168				14,480
Cash at End of Period		$	355			$	1,847
SUPPLEMENTAL DISCLOSURES:
Cash Paid During the Period For:
Interest		$	-			$	-
Income taxes		$	-			$	-

 

The accompanying notes are an integral part of these unaudited condensed financial statements.

 

5

 

  

OUTDOOR SPECIALTY PRODUCTS, INC.

Notes to the Unaudited Condensed Financial Statements

Nine Months Ended June 30, 2022

 

NOTE 1: Condensed Financial Statements

 

The accompanying unaudited financial statements of Outdoor Specialty Products, Inc. (the “Company”) were prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. Management of the Company (“Management”) believes that the following disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the audited financial statements and the notes thereto for the year ended September 30, 2021.

 

These unaudited financial statements reflect all adjustments, consisting only of normal recurring adjustments that, in the opinion of Management, are necessary to present fairly the financial position and results of operations of the Company for the periods presented. Operating results for the nine months ended June 30, 2022, are not necessarily indicative of the results that may be expected for the year ending September 30, 2022.

 

NOTE 2 – Going Concern

 

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  As shown in the accompanying financial statements, the Company did not generate sufficient revenue to generate net income, has a negative working capital, and has a limited operating history. These factors, among others, may indicate that there is substantial doubt that the Company will be unable to continue as a going concern for a reasonable period of time.

 

The financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.  The Company’s continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability.  The Company intends to seek additional funding through debt or equity offerings and additional stockholder loans if required to fund its business plan.  There is no assurance that the Company will be successful in raising additional funds.

 

NOTE 3 – LINE OF CREDIT – RELATED PARTY

 

During the nine months ending June 30, 2022, the Company amended the revolving promissory note agreement with a related party to extend the maturity date to December 31, 2022, and increase the maximum principal indebtedness from $40,000 to $55,200. The revolving promissory note bears interest at the rate of 3.5%. During the nine months ended June 30, 2022, we borrowed an aggregate principal amount of $17,543 under this revolving loan agreement. On June 30, 2022, the outstanding balance on this agreement was $47,793 with accrued interest of $1,463 and on September 30, 2021, the outstanding balance on this agreement was $30,250 with accrued interest of $409.

 

During the quarter ended June 30, 2022, the Company amended the revolving promissory note agreement with another principal stockholder to extend the maturity date to December 31, 2022, and increase the maximum principal indebtedness from $7,000 to $9,750. During the nine months ended June 30, 2022, we borrowed an aggregate principal amount of $6,344 under this second revolving loan agreement. On June 30, 2022, the outstanding balance on this agreement was $6,344 with accrued interest of $106.

 

NOTE 4 – STOCKHOLDER’S EQUITY

 

During the year ending September 30, 2021, the Company repurchased 1,429 shares of its common stock from a shareholder for $500 upon a shareholder’s exercise of dissenters’ rights, which shares were cancelled and returned to the status of authorized and unissued shares.

 

NOTE 5 – SUBSEQUENT EVENTS

 

The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and determined that there are no events requiring disclosure.

 

6

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

You should read the following discussion in conjunction with our financial statements, which are included elsewhere in this report.

 

Overview

 

We are and have since our inception in 2014 been engaged in the business of developing, selling, and marketing products in niche markets within the specialty outdoor products marketplace. We introduced our proprietary “Reel Guard” product in 2014 and continue to offer it for sale on our website and on eBay. We intend to commence manufacturing, marketing, and selling our new “SLINKOR” product in the near future, pursuant to a license agreement entered into with the inventor in May 2021.

 

The COVID-19 pandemic has had, and continues to have, a significant impact around the world. The COVID-19 pandemic has resulted in restrictions on travel and business operations, temporary closures of businesses, quarantine and shelter-in-place orders, and greater uncertainty in global financial markets. As a result of COVID-19 mobility restrictions globally, there have been changes in consumer behavior. We expect these changes in behavior to continue to evolve as the pandemic ebbs and flows. The full impact of the COVID-19 pandemic on the Company remains inherently uncertain at the time of this report.

 

Our financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  We did not generate sufficient revenue to generate net income, we have negative working capital, and we have a limited operating history. These factors, among others, may indicate that there is substantial doubt that we will be unable to continue as a going concern for a reasonable period of time. Our financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that might be necessary should we be unable to continue as a going concern.  Our continuation as a going concern is dependent upon our ability to generate sufficient cash flow to meet our obligations on a timely basis and ultimately to attain profitability.  We intend to increase our sales through the addition of our SLINKOR product and, if required, to seek additional funding through debt or equity offerings and additional stockholder loans to fund our business plan.  There is no assurance that the SLINKOR product will result in an increase in sales or that we will be successful in raising additional funds.

 

Results of Operations for the Three and Nine Months Ended June 30, 2022 and 2021

 

Revenues

 

From our inception in 2014 through the present, our revenues have resulted solely from sales of our proprietary Reel Guard product and our costs of sales also relate solely to that product. Our Reel Guard product is offered for sale on our website and on eBay and sales vary from quarter to quarter based on the number of customers that become aware of the product and decide to purchase it. Total revenues for the three months ended June 30, 2022, were $117, compared to $42 for the three months ended June 30, 2021, an increase of $75, or approximately 179%. Total revenues for the nine months ended June 30, 2022, were $264, compared to $193 for the nine months ended June 30, 2021, an increase of $71, or approximately 37%.

 

Cost of Sales

 

Cost of sales for the three months ended June 30, 2022 was $12, compared to $4 for the three months ended June 30, 2021, an increase of $8, or approximately 200%. Cost of sales for the nine months ended June 30, 2022 was $27, compared to $17 for the nine months ended June 30, 2021, an increase of $10, or approximately 59%. Cost of sales as a percentage of revenue for the nine months ended June 30, 2022 was approximately 10% compared to approximately 9% for the nine months ended June 30, 2021. Our cost of sales as a percentage of revenue did not differ significantly from 2021 to 2022 since we offered only one product for sale and there have been no material change in the sales price or manufacturing cost of our product.

 

7

 

 

General and Administrative Expenses

 

General and administrative expenses were $6,854 for the three months ended June 30, 2022, compared to $10,025 for the three months ended June 30, 2021, a decrease of $3,171 or approximately 32%. General and administrative expenses were $28,483 for the nine months ended June 30, 2022, compared to $27,270 for the nine months ended June 30, 2021, an increase of $1,213 or approximately 4%. General and administrative expenses consist primarily of legal, accounting, and Edgar filing expenses and have generally increased as a result of our becoming an SEC reporting company in 2021.

 

Depreciation and Amortization Expense

 

Depreciation and amortization expenses currently are not material to our business. Depreciation and amortization expense was $307 for the nine months ended June 30, 2022 as compared to $874 for the nine months ended June 30, 2021.

 

Research and Development Expenses

 

Research and development expenses are not currently material to our business. We did not incur research and development expenses in the nine months ended June 30, 2022 or 2021.

 

Liquidity and Capital Resources

 

As of June 30, 2022, we had total current assets of $6,844, including cash of $355, and current liabilities of $55,706, resulting in a working capital deficit of $48,862. Our current liabilities include an outstanding principal balance of $54,137, and $1,569 in accrued interest, under the short-term revolving loan agreements with our president and another principal stockholder that are due on or before December 31, 2022. As of June 30, 2022, we had an accumulated deficit of $148,686 and a total stockholders’ deficit of $44,169. We have financed our operations to date from sales of our Reel Guard product, proceeds from our 2014 private placement, and proceeds from the short-term revolving loan agreements.

 

For the nine months ended June 30, 2022, net cash used by operating activities was $29,700, as a result of a net loss of $29,406, which was (i) reduced by depreciation and amortization of $307, a decrease in inventory of $28, and an increase in accrued interest of $1,160, and (ii) increased by an increase in prepaid expense of $1,375 and a decrease in accounts payable of $414. By comparison, for the nine months ended June 30, 2021, net cash used by operating activities was $24,883, as a result of a net loss of $27,301, which was (i) reduced by depreciation and amortization of $874, a decrease in inventory of $17, an increase in accounts payable of $2,736, and an increase in accrued interest of $207, and (ii) increased by an increase in prepaid expense of $1,416.

 

For the nine months ended June 30, 2022 and 2021, we had no cash flows used in or provided by investing activities.

 

For the nine months ended June 30, 2022, we had net cash provided by financing activities of $23,887 consisting of proceeds from the revolving loan agreements. For the nine months ended June 30, 2021, we had net cash provided by financing activities of $12,750, also consisting of proceeds from the revolving loan agreements, reduced by $500 for the repurchase of common shares upon a shareholder’s exercise of dissenters’ rights.

 

Following our incorporation in 2014, we completed the private placement of 285,714 shares of our common stock to accredited investors in a private placement at a price of $0.35 per share for total proceeds of $100,011. The proceeds from the private placement together with our limited product sales were sufficient to fund our operations through our fiscal year ended September 30, 2020. On January 4, 2021, we entered into a revolving promissory note agreement with our president and principal stockholder that provided for total loans of up to $40,000 at an interest rate 3.5% per annum, which was repayable on or before December 31, 2021. During December 2021, we amended the revolving promissory note agreement to extend the maturity date to June 30, 2022, and during June 2022, we further amended the agreement to increase the maximum principal indebtedness to $55,200 and extend the maturity date to December 31, 2022. During December 2021, we entered into a revolving promissory note agreement with another principal stockholder which provided for loans of up to $7,000 at an interest rate of 3.5% per annum, which was repayable on or before June 30, 2022. During June 2022, we amended this agreement to increase the maximum principal indebtedness to $9,750 and extend the maturity date to December 31, 2022. We received proceeds under the revolving loan agreements of $23,887 during the nine months ended June 30, 2022, resulting in a principal balance of $54,137, with accrued interest of $1,569, at June 30, 2022.

 

8

 

 

We believe we will be able to extend the term of the revolving loan agreements with our president and another principal stockholder and that if we do so, we will have adequate funds to meet our obligations for the next twelve months from our current cash, the revolving note agreements, and cash flows from operations. Cash flow from operations has not historically been sufficient to sustain our operations without the additional sources of capital described above. Our future working capital requirements will depend on many factors, including the extension of the revolving loan agreements and the expansion of our product line to include the new SLINKOR product. If we are unable to extend the term of the revolving loan agreements or if our cash, cash equivalents, and cash flows from operating activities and the revolving note agreements are insufficient to fund our future activities, we will need to raise additional funds through private equity or debt financing or additional stockholder loans. We also may need to raise additional funds in the event we determine in the future to effect one or more acquisitions of businesses, technologies, or products. If additional funding is required, we may not be able to affect an equity or debt financing on terms acceptable to us or at all.

 

In addition, COVID-19 and related measures to contain its impact have caused material disruptions in both national and global financial markets and economies. The future impact of COVID-19 and these containment measures cannot be predicted with certainty and may increase our borrowing costs and other costs of capital and otherwise adversely affect our business, results of operations, financial condition and liquidity, and no assurance can be given that we will have access to external financing at times and on terms we consider acceptable, or at all, or that we will not experience other liquidity issues going forward.

 

Cash Requirements

 

As of June 30, 2022 and September 30, 2021, we did not have any lease obligations or requirements or other agreements requiring a significant commitment of cash.

 

Off-Balance Sheet Arrangements

 

As of June 30, 2022 and September 30, 2021, we did not have any off-balance sheet financing arrangements.

 

Significant Accounting Policies

 

There have been no material changes to our significant accounting policies and estimates as previously disclosed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2021.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

Not Applicable. The Company is a “smaller reporting company.”

 

Item 4. Controls and Procedures

 

Evaluation of disclosure controls and procedures.

 

Under the supervision and with the participation of our management, including our President and Treasurer who serves as our principal executive and principal financial officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (“the Exchange Act”) as of June 30, 2022, the end of the period covered by this report. Based upon that evaluation, our President and Treasurer, concluded that our disclosure controls and procedures as of June 30, 2022 were effective such that the information required to be disclosed by us in reports filed under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, including our President and Treasurer, as appropriate to allow timely decisions regarding disclosure. A controls system cannot provide absolute assurance that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.

 

Changes in internal controls over financial reporting.

 

There was no change in our internal control over financial reporting during the three months ended June 30, 2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

9

 

 

PART II – OTHER INFORMATION

 

Item 1. Legal Proceedings

 

We are not a party to any material pending legal proceedings.

 

Item 1A. Risk Factors

 

Not Applicable. The Company is a “smaller reporting company.”

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

None.

 

Item 3. Defaults upon Senior Securities

 

Not Applicable.

 

Item 4. Mine Safety Disclosures

 

Not Applicable.

 

Item 5. Other Information

 

None.

 

Item 6: Exhibits

 

The following are included as exhibits to this report:

 

Exhibit Number		Title of Document		Location
3.1		Articles of Incorporation		Incorporated by Reference(1)
3.2		Articles of Merger dated February 24, 2021		Incorporated by Reference(1)
3.3		Bylaws		Incorporated by Reference(1)
10.1		Second Amendment to Revolving Promissory Note Agreement with Kirk Blosch dated as of June 2, 2022
10.2		First Amendment to Revolving Promissory Note Agreement with Ed Bailey dated as of June 2, 2022
31.1		Section 302 Certification of Chief Executive and Chief Financial Officer		This Filing
32.1		Section 1350 Certification of Chief Executive and Chief Financial Officer		This Filing
101		The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, formatted in Inline XBRL: (i) Condensed Balance Sheets, (ii) Condensed Statements of Operations, (iii)Condensed Statements of Changes in Stockholders Equity (Deficit), (iv)Condensed Statements of Cash Flows, and (v) Notes to the Unaudited Condensed Financial Statements.		This Filing
104		The cover page of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, formatted in Inline XBRL (included within Exhibit 101).		This Filing

 

(1)	Incorporated by reference to the Company’s Registration Statement on Form 10-12G filed June 24, 2021.

 

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SIGNATURES

 

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

 

	Outdoor Specialty Products, Inc.
Dated:  July 26, 2022	By	/s/ Kirk Blosch
		Kirk Blosch
		President, Secretary and Treasurer
		(Principal Executive and Accounting Officer)

 

 

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