VIPER POWERSPORTS INC

CIK:0001337213|SEC Filings

Consolidated Statements of Operations (USD $)	12 Months Ended
Consolidated Statements of Operations (USD $)	Dec. 31, 2012	Dec. 31, 2011
Revenues (net of returns)	$ 611,797	$ 165,209
Cost of revenues	660,165	165,538
Gross profit	(48,368)	(329)
Operating expenses
Research and development costs	331,936	69,585
Selling, general and administrative	3,093,497	3,212,118
Total operating expenses	3,425,433	3,281,703
Loss from operations	(3,473,801)	(3,282,032)
Other income (expense)
Interest expense	(1,222,772)	(59,444)
Accretion of debt discount	(474,977)	(83,304)
Beneficial conversion features	0	(227,419)
Financing cost relating to debt discount	(747,886)	(183,566)
Inventory impairment	(189,724)	0
Other income	9	2,905
Total other income (expense)	(2,635,350)	(550,828)
Deemed dividend of preferred stock	0	(338,508)
Net loss attributed to common shareholders	$ (6,109,151)	$ (4,171,368)
Loss per common share - basic and diluted (in dollars per share)	$ (0.12)	$ (0.19)
Weighted average common shares outstanding - basic and diluted (in shares)	51,799,305	20,493,779

Consolidated Statements of Cash Flows (USD $)	12 Months Ended
Consolidated Statements of Cash Flows (USD $)	Dec. 31, 2012	Dec. 31, 2011
Cash flows from operating activities:
Net loss	$ (6,109,151)	$ (3,832,860)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	223,063	46,158
Common stock and warrants issued for compensation and expenses	1,030,748	1,380,785
Amortization of debt discount and beneficial conversion feature	1,222,863	494,289
Impairment loss-inventory and fixed assets	174,000	75,802
Common stock issued to convert debt	0	75,000
Changes in operating assets and liabilities:
Increase in accounts receivable, net of bad debts	(20,690)	(7,473)
Increase in inventory and supplies, net of obsolescence	(660,967)	(144,893)
Increase in prepaids and other	(1,244,022)	(110,992)
Decrease (increase) in accounts payable	(10,514)	89,807
Decrease in accrued liabilities	(26,797)	(4,204)
Net cash used in operating activities	(5,421,467)	(1,938,581)
Cash flows from investing activities:
Purchase of intellectual property	(415,000)	0
Purchase of fixed assets	(331,968)	(308,592)
Net cash provided used in investing activities	(746,968)	(308,592)
Cash flows from financing activities:
Proceeds from sale of preferred stock	0	613,465
Proceeds from sale of common stock	525,000	892,871
Proceeds from note payable	5,477,641	690,000
Proceeds from note payable - related parties	556,000	202,000
Payments on note payable	(15,000)	(59,000)
Debt Discounts	(114,611)	0
Payments for loan costs	86,194	(55,333)
Payment on notes payable - related party	(280,000)	(24,513)
Net cash provided by (used in) financing activities	6,235,224	2,259,490
Net change in cash and cash equivalents	66,789	12,317
Cash, beginning of period	27,896	15,579
Cash, end of period	94,686	27,896
Supplemental Non-Cash Financing Activities and Cash Flow Information:
Stock warrants issued with short-term loans	0	75,000
Stock warrants as prepaid finder's fee	0	100,000
Common Stock issued for conversion	3,066,586	0
Inventory transferred to fixed assets	0	168,108
Common Stock [Member]
Supplemental Non-Cash Financing Activities and Cash Flow Information:
Capital stock issued for debt	1,030,748	325,000
Preferred Stock [Member]
Supplemental Non-Cash Financing Activities and Cash Flow Information:
Capital stock issued for debt	$ 0	$ 425,000

Consolidated Balance Sheets (USD $)

Dec. 31, 2012

Dec. 31, 2011

ASSETS

Cash

$ 94,686

$ 27,896

Accounts receivable

29,493

8,803

Inventory and supplies

1,010,141

523,174

Prepaid expenses and other assets

1,324,824

101,602

Total current assets

2,459,144

661,475

Fixed assets:

Office and computer equipment

96,733

Manufacturing and development equipment

545,235

242,835

Vehicles

278,507

248,937

Leasehold improvements

63,363

Subtotal

983,838

651,868

Accumulated depreciation

(311,682)

(140,715)

Total fixed assets

672,156

511,153

Other assets:

Rental deposit and other

14,200

13,400

Deferred financing cost

2,035,767

^[1]

Intangibles

362,904

Total other assets

2,412,871

13,400

Total assets

5,544,171

1,186,028

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Accounts payable

174,144

222,319

Accrued liabilities

158,208

205,091

Notes payable, less discount of $114,611

5,735,141

233,621

Notes payable - related party

212,000

175,111

Current portion of long-term liabilities

100,000

Total current liabilities

6,279,493

936,142

Long-term liabilities

Note payable

170,000

Total long-term liabilities

170,000

Total liabilities

6,279,493

1,106,142

Stockholders' equity (deficit)

Preferred stock; $0.001 par value; 20,000,000 shares authorized, 0 and 1,386,469 issued and outstanding, respectively

1,386

Common stock; $0.001 par value; 100,000,000 shares authorized, 52,182,637 and 28,692,252 issued and outstanding, respectively

52,183

28,692

Additional paid-in capital

46,084,232

40,812,394

Accumulated deficit

(46,871,737)

^[1]

(40,762,586)

Total stockholders' equity (deficit)

(735,322)

79,886

Total liabilities and stockholders' equity (deficit)

$ 5,544,171

$ 1,186,028

[1]	The pro forma is intended to reflect the Company going forward. Debt issuance costs have been adjusted to zero to reflect the result of the settlement.