0001610718 --09-30 false 2025 Q1 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure 0001610718 2024-10-01 2024-12-31 0001610718 2024-12-31 0001610718 2025-02-05 0001610718 2024-09-30 0001610718 2023-10-01 2023-12-31 0001610718 us-gaap:CommonStockMember 2024-10-01 2024-12-31 0001610718 us-gaap:AdditionalPaidInCapitalMember 2024-10-01 2024-12-31 0001610718 us-gaap:RetainedEarningsMember 2024-10-01 2024-12-31 0001610718 2023-09-30 0001610718 us-gaap:CommonStockMember 2023-09-30 0001610718 us-gaap:AdditionalPaidInCapitalMember 2023-09-30 0001610718 us-gaap:RetainedEarningsMember 2023-09-30 0001610718 us-gaap:CommonStockMember 2023-10-01 2023-12-31 0001610718 us-gaap:AdditionalPaidInCapitalMember 2023-10-01 2023-12-31 0001610718 us-gaap:RetainedEarningsMember 2023-10-01 2023-12-31 0001610718 2023-12-31 0001610718 us-gaap:CommonStockMember 2023-12-31 0001610718 us-gaap:AdditionalPaidInCapitalMember 2023-12-31 0001610718 us-gaap:RetainedEarningsMember 2023-12-31 0001610718 us-gaap:CommonStockMember 2024-09-30 0001610718 us-gaap:AdditionalPaidInCapitalMember 2024-09-30 0001610718 us-gaap:RetainedEarningsMember 2024-09-30 0001610718 us-gaap:CommonStockMember 2024-12-31 0001610718 us-gaap:AdditionalPaidInCapitalMember 2024-12-31 0001610718 us-gaap:RetainedEarningsMember 2024-12-31 0001610718 fil:RelatedParty1Member 2024-06-30 0001610718 fil:RelatedParty1Member 2024-10-01 2024-12-31 0001610718 fil:RelatedParty1Member 2022-10-01 2023-09-30 0001610718 fil:RelatedParty2Member 2024-12-31 0001610718 fil:RelatedParty2Member 2024-10-01 2024-12-31 0001610718 fil:RelatedParty2Member 2022-10-01 2023-09-30

 

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 December 31, 2024

 

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 (NV)

 

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)

 

(801) 560-5184

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 ý  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 ý    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 o  

Accelerated filer o    

Non-accelerated filer ý

Smaller reporting company

 

Emerging Growth Company


1


 

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.  o

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes   No ý

 

The number of shares outstanding of each of the issuer’s classes of common stock as of February 5, 2025 is 5,284,318.


2


 

OUTSIDE SPECIALTY PRODUCTS, INC.

FORM 10-Q

 

FOR THE THREE MONTHS ENDED DECEMBER 31, 2024

 

 

Special Note Regarding Forward-Looking Statements

4

 

 

PART I - Financial Information

 

 

 

Item 1.

Financial Statements (Unaudited)

5

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

12

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

14

 

 

Item 4.

Controls and Procedures

14

 

 

PART II - Other Information

 

 

 

Item 1.

Legal Proceedings

15

 

 

Item 1A.

Risk Factors

15

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

15

 

 

Item 3.

Defaults upon Senior Securities

15

 

 

Item 4.

Mine Safety Disclosures

15

 

 

Item 5.

Other Information

15

 

 

Item 6.

Exhibits

16

 

 

Signatures

17


3


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.


4


 

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

 

Index to Financial Statements

 

 

 

 

 

 

Condensed Balance Sheets (Unaudited) at December 31, 2024 and September 30, 2024

6

 

 

Condensed Statements of Operations. (Unaudited) for the Three Months Ended December 31, 2024 and 2023

7

 

 

Condensed Statements of Changes in Stockholders’ Deficit (Unaudited) for the Three Months Ended December 31, 2024 and 2023

8

 

 

Condensed Statements of Cash Flow (Unaudited) for the Three Months Ended December 31, 2024 and 2023

9

 

 

Notes to the Unaudited Condensed Financial Statements.

10


5


 

OUTDOOR SPECIALTY PRODUCTS, INC.

Condensed Balance Sheets

(Unaudited)

 

 

December 31,

2024

 

September 30,

2024

 

Assets:

 

 

 

 

 

Current Assets:

 

 

 

 

 

    Cash

$

2,771  

$

560  

 

    Prepaid expense

 

4,950  

 

5,938  

 

    Inventory

 

3,644  

 

3,646  

 

Total current assets

 

11,365  

 

10,144  

 

 

Other Assets:

 

 

 

 

 

    Property, plant and equipment, net

 

3,972  

 

4,125  

 

    Patents, net

 

2,155  

 

2,192  

 

 

 

 

 

 

 

Total Assets

$

17,492  

$

16,461  

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' (Deficit):

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

   Accounts payable

$

4,710  

$

-  

 

   Accrued interest - related party

 

10,871  

 

9,459  

 

   Line of credit - related party

 

166,242  

 

148,968  

 

 

 

 

 

 

 

Total Liabilities

 

181,823  

 

158,427  

 

 

 

 

 

 

 

Stockholders' Deficit:

 

 

 

 

 

  Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding as of December 31, 2024 and September 30, 2024  

 

-  

 

-  

 

   Common stock, $0.001 par value, 190,000,000 shares authorized, 5,284,318 shares issued and outstanding as of December 31, 2024 and September 30, 2024

 

5,285  

 

5,285  

 

   Additional paid-in capital

 

99,232  

 

99,232  

 

   Accumulated deficit

 

(268,848) 

 

(246,483) 

 

    Total Stockholders' Deficit

 

(164,331) 

 

(141,966) 

 

 

 

 

 

 

 

  Total Liabilities and Stockholders' Deficit

$

17,492  

$

16,461  

 

 

 

 

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


6


OUTDOOR SPECIALTY PRODUCTS, INC.

Condensed Statements of Operations

(Unaudited)

 

 

 

For the Three Months Ended

 

 

 

December 31,

 

 

2024

 

2023

 

 

 

 

 

 

 

  Revenue

$

26  

$

13  

 

  Cost of sales

 

(2) 

 

(1) 

 

       Gross Profit

 

24  

 

12  

 

 

 

 

 

 

 

  Operating Expenses:

 

 

 

 

 

  General and administrative

 

20,977  

 

15,608  

 

  Total Operating Expenses

 

20,977  

 

15,608  

 

  Loss from Operations

 

(20,953) 

 

(15,596) 

 

  Other Expense:

 

 

 

 

 

      Interest expense – related party

 

1,412  

 

942  

 

  Total other expense

 

1,412  

 

942  

 

  Net Loss

$

(22,365) 

$

(16,538) 

 

  Net loss per share of common

   stock – basic and diluted

$

(0.00) 

$

(0.00) 

 

Weighted average number

  of common shares

     outstanding – basic and diluted

 

5,284,318  

 

5,284,318  

 

 

 

 

 

 

 

 

 

 

 

 

 

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


7


OUTDOOR SPECIALTY PRODUCTS, INC.

Condensed Statements of Changes in Stockholders’ Deficit

For the three months ended December 31, 2024 and 2023

(Unaudited)

 

 

 

 

Common Stock

 

 

Additional
Paid-in
Capital

 

 

 

 

 

Accumulated
Deficit

 

 

Total
Stock-
holders’
Deficit

 

 

 

Shares

 

 

Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, September 30, 2023

 

 

5,284,318

 

 

$

5,285

 

 

$

99,232

 

 

 

 

 

$

(202,918

)

 

$

(98,401)

 

Net loss for the three months ended December 31, 2023

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

(16,538

)

 

 

(16,538

)

Balance, December 31, 2023

 

 

5,284,318

 

 

$

5,285

 

 

$

99,232

 

 

 

 

 

$

(219,456

)

 

$

(114,939

)

 

 

Common Stock

 

 

Additional
Paid-in
Capital

 

 

 

 

 

Accumulated
Deficit

 

 

 

 

Total
Stock-
holders’
(Deficit)

 

 

 

Shares

 

 

Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, September 30, 2024

 

 

5,284,318

 

 

$

5,285

 

 

$

99,232

 

 

 

 

 

$

(246,483

)

 

$

(141,966)

 

Net loss for the three months ended December 31, 2024

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

(22,365

)

 

 

(22,365

)

Balance, December 31, 2024

 

 

5,284,318

 

 

$

5,285

 

 

$

99,232

 

 

 

 

 

$

(268,848

)

 

$

(164,331

)

 

 

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


8


 

 

OUTDOOR SPECIALTY PRODUCTS, INC.
Condensed Statements of Cash Flows

(Unaudited)

 

 

 

For the Three Months Ended

 

 

 

 

December 31,

 

 

 

2024

 

 

2023

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net Loss

$

(22,365) 

 

$

(16,538) 

 

Adjustments to Reconcile Net Loss To Net Cash Used by Operating Activities

 

 

 

 

 

 

 Depreciation and amortization

 

190  

 

 

-  

 

Changes in Operating Assets and Liabilities:

 

 

 

 

 

 

 Decrease (increase) in prepaid expense

 

988  

 

 

(5,092) 

 

 Decrease in inventory

 

2  

 

 

1  

 

 Increase in accounts payable

 

4,710  

 

 

5,512  

 

 Increase in accrued interest – related party

 

1,412  

 

 

942  

 

Net Cash Used by Operating Activities

 

(15,063) 

 

 

(15,175) 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

Net Cash Used by Investing Activities

 

-  

 

 

-  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

   Proceeds from line of credit - related party

 

17,274  

 

 

13,553  

 

Net Cash Provided by Financing Activities

 

17,274  

 

 

13,553  

 

 

 

 

 

 

 

 

Net Increase (Decrease) in Cash

 

2,221  

 

 

(1,622) 

 

Cash at Beginning of Period

 

560  

 

 

3,162  

 

Cash at End of Period

$

2,771  

 

$

1,540  

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES:

 

 

 

 

 

 

 Cash Paid During the Period For:

 

 

 

 

 

 

    Interest

$

-  

 

$

-  

 

    Income taxes

$

-  

 

$

-  

 

 

 

 

 

 

 

 

 

 

 

 

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


9


 

 

OUTDOOR SPECIALTY PRODUCTS, INC.

Notes to the Unaudited Condensed Financial Statements

December 31, 2024

 

 

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, 2024.

 

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 three months ended December 31, 2024, are not necessarily indicative of the results that may be expected for the year ending September 30, 2025.

 

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 able 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 additional stockholder loans and debt or equity offerings to fund its business plan.  There is no assurance that the Company will be successful in raising additional funds.


10


 

 

OUTDOOR SPECIALTY PRODUCTS, INC.

Notes to the Unaudited Condensed Financial Statements

December 31, 2024

 

 

NOTE 3 – Line of Credit – Related Party

 

During the three months ending December 31, 2024, the Company amended the revolving promissory note agreement with its related party to extend the maturity date to December 31, 2025 and increase the maximum principal indebtedness to $170,000.  The revolving promissory note bears interest at the rate of 3.5%. The Company received proceeds under the line of credit of $14,727 and recorded interest expense of $1,204 during the three months ended December 31, 2024, resulting in principal balances of $141,348 and $126,621, with accrued interest of $9,441 and $8,237, at December 31, 2024 and September 30, 2024, respectively.

 

Also, during the three months ending December 31, 2024, the Company amended the revolving promissory note agreement with another principal stockholder to extend the maturity date to December 31, 2025 and increase the maximum principal indebtedness to $30,000.  The revolving promissory note bears interest at the rate of 3.5% per annum.  The Company received proceeds under the line of credit of $2,547 and recorded interest expense of $208 during the three months ended December 31, 2024, resulting in principal balances of $24,894 and $22,347 with accrued interest of $1,430 and $1,222, at December 31, 2024, and September 30, 2024, respectively.

 

NOTE 4 – Inventory

 

The Company’s inventory is broken out by finished goods and raw materials.  The following is a summary of inventory:

 

 

December 31,

2024

 

September 30, 2024

 

Raw Materials

$

2,596

$

2,596

 

Finished Goods

 

 1,048

 

 1,050

 

    Total Inventory

$

 3,644

$

3,646

 

 

NOTE 5 – Subsequent Events

 

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


11


 

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. We are continuing our efforts to design and develop our new Slow-Sinker product that involves the use of a single injection molded component made of a material with a density heavier than water to achieve a slow sinking rate with enough overall weight to accomplish long-distance casting.

 

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 able 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 seek additional funding, if and to the extent required, through additional stockholder loans and debt or equity offerings.  We also intend to increase our sales through the addition of our proposed Slow-Sinker product if and when its design is finalized and manufacturing has commenced. There is no assurance that we will be successful in raising additional funds or that the Slow-Sinker product will be successfully designed or result in an increase in sales.

 

Results of Operations for the Three months Ended December 31, 2024 and 2023

 

Revenues

 

From our inception in 2014 through the present, our revenue has resulted solely from sales of our proprietary Reel Guard product and our cost 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 make a purchase.  Total revenue for the three months ended December 31, 2024, was $26, compared to $13 for the three months ended December 31, 2023, an increase of $13, or 100%.  We are not aware of any specific reason for the increase in sales.   

 

Cost of Sales

 

Cost of sales for the three months ended December 31, 2024 was $2, compared to $1 for the three months ended December 31, 2023, an increase of $1, or 100%, which is in line with the increase in revenue.  Cost of sales as a percentage of revenue was approximately 7.7% for each of the three-month periods ended December 31, 2024 and 2023.  Our cost of sales as a percentage of revenue did not differ significantly from 2024 to 2023 since we offered only one product for sale and there have been no material changes in the sales price or manufacturing cost of our product.

 

General and Administrative Expenses

 

General and administrative expenses were $20,977 for the three months ended December 31, 2024, compared to $15,608 for the three months ended December 31, 2023, an increase of $5,369 or approximately 34.4%.  General and administrative expenses consist primarily of legal, accounting, and Edgar filing expenses.


12


 

Depreciation and Amortization Expense

 

Depreciation and amortization expenses currently are not material to our business.  Depreciation and amortization expense was $190 for the three months ended December 31, 2024 as compared to $0 for the three months ended December 31, 2023.  The increase results from our acquisition of molding equipment for the proposed Slow-Sinker product and the filing of a patent with respect to such product.  

 

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 three months ended December 31, 2024 or 2023.

 

Liquidity and Capital Resources

 

As of December 31, 2024, we had total current assets of $11,365, including cash of $2,771, and current liabilities of $181,823, resulting in a working capital deficit of $170,458.  Our current liabilities include accounts payable of $4,710, and a principal outstanding balance of $166,242 and $10,871 in accrued interest under the short-term related party revolving loan agreements with our president and another principal stockholder that are due on or before December 31, 2025.  As of December 31, 2024, we had an accumulated deficit of $268,848 and a total stockholders’ deficit of $164,331.  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 related party revolving loan agreements.

 

For the three months ended December 31, 2024, net cash used by operating activities was $15,063 as a result of a net loss of $22,365, offset by depreciation and amortization of $190, a decrease in prepaid expense of $988, a decrease in inventory of $2, an increase in accounts payable of $4,710 and an increase in accrued interest – related party of $1,412.  By comparison, for the three months ended December 31, 2023, net cash used by operating activities was $15,175 as a result of a net loss of $16,538 and an increase in prepaid expense of $5,092, offset by a decrease in inventory of $1, an increase in accounts payable of $5,512, and an increase in accrued interest – related party of $942.  

 

For the three months ended December 31, 2024 and 2023, we had no cash flows used in or provided by investing activities.   

 

For the three months ended December 31, 2024, we had net cash provided by financing activities of $17,274 consisting of proceeds from the related party revolving loan agreements.  For the three months ended December 31, 2023, we had net cash provided by financing activities of $13,553, also consisting of proceeds from the related party revolving loan agreements.    

 

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, as amended, provides for total loans of up to $170,000 at an interest rate 3.5% per annum, which is repayable on or before December 31, 2025.  We received proceeds under the revolving promissory note of $14,727 and recorded interest expense of $1,204 during the three months ended December 31, 2024, resulting in principal balances of $141,348 and $126,621, with accrued interest of $9,441 and $8,237, at December 31, 2024 and September 30, 2024, respectively. During December 2021, we entered into a revolving promissory note agreement with another principal stockholder that, as amended, provides for loans of up to $30,000 at an interest rate of 3.5% per annum, which is repayable on or before December 31, 2025. We received proceeds under the second revolving promissory note of $2,547 and recorded interest expense of $208 during the three months ended December 31, 2024, resulting in principal balances of $24,894 and $22,347, with accrued interest of $1,430 and $1,222, at December 31, 2024 and September 30, 2024, respectively.

 


13


 

We believe we have adequate funds to meet our obligations for the next twelve months from our current cash, the revolving note agreements, and projected cash flow 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 our revenues and the expansion of our product lines to include the new Slow-Sinker product if and when the product is finalized. To the extent our cash, cash equivalents, and cash flows from operating activities and the revolving note agreements are insufficient to fund our future activities, we may need to raise additional funds through additional stockholder loans or private equity or debt financing. 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 effect an equity or debt financing on terms acceptable to us or at all.

 

Cash Requirements

 

As of December 31, 2024 and September 30, 2024, we did not have any lease obligations or requirements or other agreements requiring a significant commitment of cash.

 

Off-Balance Sheet Arrangements

 

As of December 31, 2024 and September 30, 2024, we did not have any off-balance sheet financing arrangements.

 

Critical Accounting Estimates

 

There have been no material changes to our critical accounting estimates as previously disclosed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024.

 

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.

 

Disclosure controls and procedures are designed to ensure that information required to be disclosed by us in reports filed or submitted under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow for timely decisions regarding required disclosure. Due to inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Further, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives.

 

Under the supervision and with the participation of our management, including our principal executive and 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 Exchange Act) as of December 31, 2024, the end of the period covered by this report.  Based upon that evaluation, our principal executive and financial officer concluded that our disclosure controls and procedures were not effective as of December 31, 2024, due to the existence of the material weaknesses in our internal control over financial reporting described in our annual report on Form 10-K for the year ended September 30, 2024.


14


 

Changes in internal controls over financial reporting.

 

Except as described below, there was no change in our internal control over financial reporting during the three months ended December 31, 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.  

 

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

 

Cybersecurity Matters

 

To date, due to our limited financial resources, we have not adopted any special processes for assessing, identifying, and managing material risks from cybersecurity threats to the Company or through our use of any third-party service provider, and we have not engaged any assessors, consultants, auditors, or other third parties in connection with such risks.  We are not aware of any previous cybersecurity incidents involving the Company and we do not believe cybersecurity risks have materially affected us or our strategy, results of operations or financial condition. Our president, who is also our sole director and sole employee, is responsible for the oversight of risks from cybersecurity threats and is informed about such risks because of his direct participation in the Company’s operations, transactions, and relationships. Our president has no prior work experience in cybersecurity and no relevant degrees, certifications, knowledge, skills, or other background in cybersecurity. Although we face cybersecurity risks, we believe such risks are reduced by the nature of our operations in which our product sales are made and payments are received through eBay and our website and email systems are maintained by third parties. We do not independently maintain any servers or other extensive information systems and correspondence and other business information is stored on our president’s computer system, which is not on a network and is protected by a third-party virus protection program. We may be unable to successfully identify threats, prevent attacks, satisfactorily resolve cybersecurity incidents, or implement adequate mitigating controls. Any breach of our or our providers information systems or other cybersecurity-related incidents that results in, or may result in, the loss, theft or unauthorized disclosure of data, or any delay in determining the full extent of a potential breach, could have a material adverse impact on our business, results of operations, and financial condition, including harm to our reputation and brand, reduced demand for our products, time-consuming and expensive litigation, fines, penalties, and other damages.     


15


 

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

 

Amended and Restated Revolving Promissory Note Agreement with Kirk Blosch dated as of October 1, 2024

 

 

This Filing

10.2

 

Amended and Restated Revolving Promissory Note Agreement with Ed Bailey dated as of October 1, 2024

 

 

This Filing

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.INS

 

Inline XBRL Instance Document.

 

101.SCH

 

Inline XBRL Taxonomy Extension Schema Document.

 

101.CAL

 

Inline XBRL Taxonomy Extension Calculation Linkbase Document.

 

101.DEF

 

Inline XBRL Taxonomy Extension Definition Linkbase Document.

 

101.LAB

 

Inline XBRL Taxonomy Extension Label Linkbase Document.

 

101.PRE

 

Inline XBRL Taxonomy Extension Presentation Linkbase Document.

 

104

 

Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

 

 

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


16


 

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:  February 5, 2025

By /s/ Kirk Blosch                                            

 

Kirk Blosch

 

President, Secretary and Treasurer

 

(Principal Executive and Accounting Officer)


17

AMENDED AND RESTATED

REVOLVING PROMISSORY NOTE AGREEMENT

OUTDOOR SPECIALTY PRODUCTS, INC.

(Line of Credit Loan)

 

US $170,000                October 1, 2024 

 

THIS AMENDED AND RESTATED REVOLVING PROMISSORY NOTE AGREEMENT SUPERSEDES AND REPLACES IN ITS ENTIRETY THAT CERTAIN REVOLVING PROMISSORY NOTE AGREEMENT BETWEEN OUTDOOR SPECIALTY PRODUCTS, INC., AND KIRK BLOSCH, DATED JANUARY 4, 2021, IN THE ORIGINAL PRINCIPAL AMOUNT OF $40,000, AS AMENDED THROUGH AND INCLUDING THE FIFTH AMENDMENT THERETO DATED OCTOBER 9, 2023.

 

FOR VALUE RECEIVED, intending to be legally bound hereby, Outdoor Specialty Products, Inc., a Utah corporation having an address of 3842 Quail Hollow Drive, Salt Lake City, Utah 84109 (“Borrower”), hereby promises to pay to the order of Kirk Blosch, an individual, or his successors and assigns (referred to herein as the “Noteholder”) at 3842 Quail Hollow Drive, Salt Lake City, Utah 84109, the principal sum of ONE HUNDRED SEVENTY THOUSAND AND NO/100 DOLLARS (US$170,000.00), or so much of that sum as may be advanced by the Noteholder under this Promissory Note from time to time and not repaid (the “Principal Indebtedness”), plus interest as computed below.

 

The following is a statement of the rights and obligations of Borrower and the Noteholder under this Promissory Note (this “Note”).  

1.Maturity Date; Optional Prepayments. 

(a)Maturity Date. The aggregate unpaid Principal Indebtedness, all accrued and unpaid interest thereon, and all other amounts payable under this Note shall be due and payable on or before the close of business on December 31, 2025 (the “Maturity Date”).  The Maturity Date may be extended from time to time by the written agreement of Borrower and Noteholder.   

(b)Optional Prepayment.  Borrower may prepay this Note in whole or in part at any time or from time to time without penalty or premium by paying the principal amount to be prepaid together with accrued interest thereon to the date of prepayment.  

2.Interest. 

(a)Interest Rate. Except as otherwise provided herein, the outstanding balance of the Principal Indebtedness shall bear interest at the rate of three and one-half percent (3.5%) per annum.  Interest shall accrue daily on the outstanding balance of the Principal Indebtedness both before and after judgment.  All computations of interest shall be made based on a 360-day year and the actual number of days elapsed.  Interest shall accrue on the Principal Indebtedness commencing on the day or days on which advances under this Note are made but shall not accrue on the Principal Indebtedness on the day on which it is paid. 


(b)Default Interest. If any amount payable hereunder is not paid when due, whether at stated maturity, by acceleration or otherwise, such overdue amount shall bear interest at a rate equal to twelve percent (12%) per annum from the date of such non-payment until such amount is paid in full. 

3.Payment Mechanics. 

(a)Manner of Payment.  All payments of interest and principal shall be made in lawful money of the United States of America no later than 5:00 P.M. on the date on which such payment is due by company check or by wire transfer of immediately available funds to Noteholder at the above address or to Noteholder’s account at a bank specified by the Noteholder in writing to Borrower from time to time.  

(b)Application of Payments.  All payments made hereunder shall be applied first to the payment of any fees or charges outstanding hereunder, second, to accrued and unpaid interest and third, to the payment of the outstanding Principal Indebtedness. 

(c)Business Day Convention.  Whenever any payment to be made hereunder shall be due on a day that is a Saturday, Sunday, or other day on which commercial banks in Salt Lake City, Utah are authorized or required by law to close, such payment shall be made on the next succeeding business day and such extension will be taken into account in calculating the amount of interest payable under this Note. 

4.Revolving Line of Credit.  This Note shall be a revolving line of credit under which Borrower may, with the consent of Lender, repeatedly draw and repay funds, so long as no default has occurred hereunder beyond any applicable notice and/or cure period and so long as the aggregate, outstanding principal balance at any time does not exceed the principal amount of this Note.  If, at any time prior to the Maturity Date, this Note shall have a zero-balance owing, this Note shall not be deemed satisfied or terminated but shall remain in full force and effect for future draws unless terminated on other grounds. 

 

5.Event of Default/Remedies.  An event of default will occur if any of the following events occurs: (a) failure to pay any principal or interest hereunder within five (5) days after the same becomes due; (b) any representation or warranty made by Borrower hereunder or in connection with any borrowing or request for an advance hereunder, or in any certificate, financial statement, or other statement furnished by Borrower to Noteholder is untrue in any material respect at the time when made; (c) filing by Borrower of a voluntary petition in bankruptcy seeking reorganization, arrangement or readjustment of debts, or any other relief under the U.S. Bankruptcy Code as amended or under any other insolvency act or law, state or federal, now or hereafter existing; or (d) filing of an involuntary petition against Borrower in bankruptcy seeking reorganization, arrangement or readjustment of debts, or any other relief under the U.S. Bankruptcy Code as amended, or under any other insolvency act or law, state or federal, now or hereafter existing, and the continuance thereof for sixty (60) days undismissed, unbonded, or undischarged. 

 

Upon the occurrence of an event of default as defined above, the Noteholder may declare the entire unpaid principal balance, together with accrued interest thereon, to be immediately due and


2


payable without presentment, demand, protest, or other notice of any kind and shall be entitled to exercise all rights and remedies provided in the Loan Agreement, at law and in equity.

 

6.Interest Limitation.  All agreements between the parties to this Note and the holder of this Note are hereby expressly limited so that in no contingency or event whatsoever, whether by reason of deferment or advancement of the proceeds of the loan evidenced by this Note, acceleration of maturity of this Note, or otherwise shall the amount paid or agreed to be paid to the Noteholder for the use, forbearance or detention of the money to be loaned under this Note exceed the maximum interest rate permissible under applicable law.  If, from any circumstance whatsoever, fulfillment of any provision of this Note or of any other agreement between the parties to this Note and the Noteholder, at the time performance of such provision shall be due, shall involve transcending the limit of validity prescribed by law, then the obligation to be fulfilled shall be reduced to the limit of such validity.  In the event that any payment is received by the Noteholder that would otherwise be deemed to be a payment of interest in excess of the maximum allowed by law, such payment shall be deemed to have been paid on account of principal at the time of receipt.  This provision shall never be superseded or waived and shall control every other provision of this Note and all agreements between the parties and the Noteholder. 

 

7.Severability.If any provision of this Note, or the application of any such provision to any person or circumstance, is held to be unenforceable or invalid by any court of competent jurisdiction or under any applicable law, Borrower and the Noteholder shall negotiate an equitable adjustment to the provisions of this Note with a view to effecting, to the greatest extent possible, the original purpose and intent of this Note, and in any event, the validity and enforceability of the remaining provisions of this Note shall not be affected thereby. 

8.Notices.  Any notice, demand or request required or permitted to be given under this Note shall be in writing and shall be deemed given (a) when delivered personally (including by recognized national courier), (b) three (3) days after being deposited in the U.S. mail, first class mail, registered or certified, with postage prepaid, or (c) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt,  in each case addressed to the parties at their respective addresses set forth in the introductory paragraph hereof or such other address as a party may request by notifying the other in writing. 

9.Governing Law.  This Note has been executed and delivered, and shall be deemed to have been made, in Salt Lake City, Utah.  This Note is governed by, and will be construed and enforced in accordance with, the laws of the State of Utah, without giving effect to any conflict of laws rules.   

10.Attorney’s Fees.  If this Note is collected by an attorney after default in the payment of principal or interest, either with or without suit, the undersigned agrees to pay all costs and expenses of collection including a reasonable attorney’s fee. 

 

11.Waiver of Presentment Etc.  Borrower hereby waives presentment for payment, protest, demand and notice of dishonor and nonpayment of this Note, and consents to all extensions of time, renewals, waivers, or modifications that may be granted by the holder hereof with respect to the payment or other provisions of this Note. 


3


12.Entire Agreement: Successors and Assigns.  This Note constitutes the entire agreement between Borrower and the Noteholder relative to the subject matter hereof.  Any previous agreement between Borrower and the Noteholder related to the subject matter hereof is superseded by this Note.  This Note shall inure to the benefit of, and be binding upon, the respective successors and permitted assigns of the parties. 

 

13.Waiver and Amendment.  This Note and the terms hereof may be amended, waived, modified, or discharged only upon the written consent of both Borrower and the Noteholder.  The waiver by a party of any breach or violation of any provision of this Note will not operate as, or be construed to be, a waiver of any subsequent breach or violation hereof. 

IN WITNESS WHEREOF, Borrower has executed this Note as of the date first written above. 

 

COMPANY: 

 

OUTDOOR SPECIALTY PRODUCTS, INC.

a Utah corporation

 

 

By: /s/ Kirk Blosch                    

Name: Kirk Blosch  

Title: President    

 

                                      

ACCEPTED AND AGREED TO: 

 

 

 

/s/ Kirk Blosch                      

Kirk Blosch 

                              

  


4

 

AMENDED AND RESTATED

REVOLVING PROMISSORY NOTE AGREEMENT

OUTDOOR SPECIALTY PRODUCTS, INC.

(Line of Credit Loan)

 

US $30,000                October 1, 2024 

 

THIS AMENDED AND RESTATED REVOLVING PROMISSORY NOTE AGREEMENT SUPERSEDES AND REPLACES IN ITS ENTIRETY THAT CERTAIN REVOLVING PROMISSORY NOTE AGREEMENT BETWEEN OUTDOOR SPECIALTY PRODUCTS, INC., AND ED BAILEY, DATED DECEMBER 1, 2021, IN THE ORIGINAL PRINCIPAL AMOUNT OF $7,000, AS AMENDED THROUGH AND INCLUDING THE FOURTH AMENDMENT THERETO DATED OCTOBER 9, 2023.

 

FOR VALUE RECEIVED, intending to be legally bound hereby, Outdoor Specialty Products, Inc., a Utah corporation having an address of 3842 Quail Hollow Drive, Salt Lake City, Utah 84109 (“Borrower”), hereby promises to pay to the order of Ed Bailey, an individual, or his successors and assigns (referred to herein as the “Noteholder”) at 4685 South Highland Drive, Suite 200, Salt Lake City, Utah 84117, the principal sum of THIRTY THOUSAND AND NO/100 DOLLARS (US$30,000.00), or so much of that sum as may be advanced by the Noteholder under this Promissory Note from time to time and not repaid (the “Principal Indebtedness”), plus interest as computed below.

 

The following is a statement of the rights and obligations of Borrower and the Noteholder under this Promissory Note (this “Note”).  

1.Maturity Date; Optional Prepayments. 

(a)Maturity Date. The aggregate unpaid Principal Indebtedness, all accrued and unpaid interest thereon, and all other amounts payable under this Note shall be due and payable on or before the close of business on December 31, 2025 (the “Maturity Date”).  The Maturity Date may be extended from time to time by the written agreement of Borrower and Noteholder.   

(b)Optional Prepayment.  Borrower may prepay this Note in whole or in part at any time or from time to time without penalty or premium by paying the principal amount to be prepaid together with accrued interest thereon to the date of prepayment.  

2.Interest. 

(a)Interest Rate. Except as otherwise provided herein, the outstanding balance of the Principal Indebtedness shall bear interest at the rate of three and one-half percent (3.5%) per annum.  Interest shall accrue daily on the outstanding balance of the Principal Indebtedness both before and after judgment.  All computations of interest shall be made based on a 360-day year and the actual number of days elapsed.  Interest shall accrue on the Principal Indebtedness commencing on the day or days on which advances under this Note are made but shall not accrue on the Principal Indebtedness on the day on which it is paid. 


(b)Default Interest. If any amount payable hereunder is not paid when due, whether at stated maturity, by acceleration or otherwise, such overdue amount shall bear interest at a rate equal to twelve percent (12%) per annum from the date of such non-payment until such amount is paid in full. 

3.Payment Mechanics. 

(a)Manner of Payment.  All payments of interest and principal shall be made in lawful money of the United States of America no later than 5:00 P.M. on the date on which such payment is due by company check or by wire transfer of immediately available funds to Noteholder at the above address or to Noteholder’s account at a bank specified by the Noteholder in writing to Borrower from time to time.  

(b)Application of Payments.  All payments made hereunder shall be applied first to the payment of any fees or charges outstanding hereunder, second, to accrued and unpaid interest and third, to the payment of the outstanding Principal Indebtedness. 

(c)Business Day Convention.  Whenever any payment to be made hereunder shall be due on a day that is a Saturday, Sunday, or other day on which commercial banks in Salt Lake City, Utah are authorized or required by law to close, such payment shall be made on the next succeeding business day and such extension will be taken into account in calculating the amount of interest payable under this Note. 

4.Revolving Line of Credit.  This Note shall be a revolving line of credit under which Borrower may, with the consent of Lender, repeatedly draw and repay funds, so long as no default has occurred hereunder beyond any applicable notice and/or cure period and so long as the aggregate, outstanding principal balance at any time does not exceed the principal amount of this Note.  If, at any time prior to the Maturity Date, this Note shall have a zero-balance owing, this Note shall not be deemed satisfied or terminated but shall remain in full force and effect for future draws unless terminated on other grounds. 

 

5.Event of Default/Remedies.  An event of default will occur if any of the following events occurs: (a) failure to pay any principal or interest hereunder within five (5) days after the same becomes due; (b) any representation or warranty made by Borrower hereunder or in connection with any borrowing or request for an advance hereunder, or in any certificate, financial statement, or other statement furnished by Borrower to Noteholder is untrue in any material respect at the time when made; (c) filing by Borrower of a voluntary petition in bankruptcy seeking reorganization, arrangement or readjustment of debts, or any other relief under the U.S. Bankruptcy Code as amended or under any other insolvency act or law, state or federal, now or hereafter existing; or (d) filing of an involuntary petition against Borrower in bankruptcy seeking reorganization, arrangement or readjustment of debts, or any other relief under the U.S. Bankruptcy Code as amended, or under any other insolvency act or law, state or federal, now or hereafter existing, and the continuance thereof for sixty (60) days undismissed, unbonded, or undischarged. 

 

Upon the occurrence of an event of default as defined above, the Noteholder may declare the entire unpaid principal balance, together with accrued interest thereon, to be immediately due and


2


payable without presentment, demand, protest, or other notice of any kind and shall be entitled to exercise all rights and remedies provided in the Loan Agreement, at law and in equity.

 

6.Interest Limitation.  All agreements between the parties to this Note and the holder of this Note are hereby expressly limited so that in no contingency or event whatsoever, whether by reason of deferment or advancement of the proceeds of the loan evidenced by this Note, acceleration of maturity of this Note, or otherwise shall the amount paid or agreed to be paid to the Noteholder for the use, forbearance or detention of the money to be loaned under this Note exceed the maximum interest rate permissible under applicable law.  If, from any circumstance whatsoever, fulfillment of any provision of this Note or of any other agreement between the parties to this Note and the Noteholder, at the time performance of such provision shall be due, shall involve transcending the limit of validity prescribed by law, then the obligation to be fulfilled shall be reduced to the limit of such validity.  In the event that any payment is received by the Noteholder that would otherwise be deemed to be a payment of interest in excess of the maximum allowed by law, such payment shall be deemed to have been paid on account of principal at the time of receipt.  This provision shall never be superseded or waived and shall control every other provision of this Note and all agreements between the parties and the Noteholder. 

 

7.Severability.  If any provision of this Note, or the application of any such provision to any person or circumstance, is held to be unenforceable or invalid by any court of competent jurisdiction or under any applicable law, Borrower and the Noteholder shall negotiate an equitable adjustment to the provisions of this Note with a view to effecting, to the greatest extent possible, the original purpose and intent of this Note, and in any event, the validity and enforceability of the remaining provisions of this Note shall not be affected thereby. 

8.Notices.  Any notice, demand or request required or permitted to be given under this Note shall be in writing and shall be deemed given (a) when delivered personally (including by recognized national courier), (b) three (3) days after being deposited in the U.S. mail, first class mail, registered or certified, with postage prepaid, or (c) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt,  in each case addressed to the parties at their respective addresses set forth in the introductory paragraph hereof or such other address as a party may request by notifying the other in writing. 

9.Governing Law.  This Note has been executed and delivered, and shall be deemed to have been made, in Salt Lake City, Utah.  This Note is governed by, and will be construed and enforced in accordance with, the laws of the State of Utah, without giving effect to any conflict of laws rules.   

10.Attorney’s Fees.  If this Note is collected by an attorney after default in the payment of principal or interest, either with or without suit, the undersigned agrees to pay all costs and expenses of collection including a reasonable attorney’s fee. 

 

11.Waiver of Presentment Etc.  Borrower hereby waives presentment for payment, protest, demand and notice of dishonor and nonpayment of this Note, and consents to all extensions of time, renewals, waivers, or modifications that may be granted by the holder hereof with respect to the payment or other provisions of this Note. 


3


12.Entire Agreement: Successors and Assigns.  This Note constitutes the entire agreement between Borrower and the Noteholder relative to the subject matter hereof.  Any previous agreement between Borrower and the Noteholder related to the subject matter hereof is superseded by this Note.  This Note shall inure to the benefit of, and be binding upon, the respective successors and permitted assigns of the parties. 

 

13.Waiver and Amendment.  This Note and the terms hereof may be amended, waived, modified, or discharged only upon the written consent of both Borrower and the Noteholder.  The waiver by a party of any breach or violation of any provision of this Note will not operate as, or be construed to be, a waiver of any subsequent breach or violation hereof. 

IN WITNESS WHEREOF, Borrower has executed this Note as of the date first written above. 

 

COMPANY: 

 

OUTDOOR SPECIALTY PRODUCTS, INC.

a Utah corporation

 

 

By: /s/ Kirk Blosch                                  

Name: Kirk Blosch  

Title: President    

 

                                      

ACCEPTED AND AGREED TO: 

 

 

 

/s/ Ed Bailey                                        

Ed Bailey 

                              


4

 

Exhibit 31.1

 

I, Kirk Blosch, certify that: 

 

1.I have reviewed this report on Form 10-Q of Outdoor Specialty Products, Inc.; 

 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;  

 

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;  

 

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have: 

 

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; 

 

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

 

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and 

 

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 

 

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): 

 

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and  

 

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. 

 

 

Date: February 5, 2025 /s/ Kirk Blosch                                            

Kirk Blosch                                 

President, Secretary and Treasurer 

(Principal Executive Officer and 

Principal Financial Officer) 


Exhibit 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Outdoor Specialty Products, Inc. (the “Company”) on Form 10-Q for the period ended December 31, 2024, as filed with the Securities and Exchange Commission on or about the date hereof (the “Report”), I, Kirk Blosch, President, Secretary and Treasurer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that: 

 

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 

 

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. 

 

 

February 5, 2025/s/ Kirk Blosch                       

Kirk Blosch  

President, Secretary and Treasurer 

 

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act has been furnished to Outdoor Specialty Products, Inc. and will be retained by Outdoor Specialty Products, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.


v3.25.0.1
Document and Entity Information - shares
3 Months Ended
Dec. 31, 2024
Feb. 05, 2025
Details    
Registrant CIK 0001610718  
Fiscal Year End --09-30  
Registrant Name OUTDOOR SPECIALTY PRODUCTS, INC.  
SEC Form 10-Q  
Period End date Dec. 31, 2024  
Tax Identification Number (TIN) 46-4854952  
Number of common stock shares outstanding   5,284,318
Filer Category Non-accelerated Filer  
Current with reporting Yes  
Interactive Data Current Yes  
Shell Company false  
Small Business true  
Emerging Growth Company false  
Document Quarterly Report true  
Document Transition Report false  
Securities Act File Number 000-56301  
Entity Incorporation, State or Country Code NV  
Entity Address, Address Line One 3842 Quail Hollow Drive  
Entity Address, City or Town Salt Lake City  
Entity Address, State or Province UT  
Entity Address, Postal Zip Code 84109  
City Area Code 801  
Local Phone Number 560-5184  
Amendment Flag false  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q1  
v3.25.0.1
Balance Sheets - USD ($)
Dec. 31, 2024
Sep. 30, 2024
Current Assets    
Cash $ 2,771 $ 560
Prepaid expense 4,950 5,938
Inventory 3,644 3,646
Total current assets 11,365 10,144
Other Assets    
Property, plant and equipment, net 3,972 4,125
Patents, net 2,155 2,192
Total Assets 17,492 16,461
Current Liabilities    
Accounts payable 4,710 0
Accrued interest - related party 10,871 9,459
Line of credit - related party 166,242 148,968
Total Liabilities 181,823 158,427
Stockholders' Deficit    
Preferred shares 0 0
Common shares 5,285 5,285
Additional paid-in capital 99,232 99,232
Accumulated deficit (268,848) (246,483)
Total Stockholders' Deficit (164,331) (141,966)
Total Liabilities and Stockholders' Deficit $ 17,492 $ 16,461
v3.25.0.1
Balance Sheets - Parenthetical - $ / shares
Dec. 31, 2024
Sep. 30, 2024
Balance Sheets    
Preferred Stock, Par or Stated Value Per Share $ 0.001 $ 0.001
Preferred Stock, Shares Authorized 10,000,000 10,000,000
Preferred Stock, Shares Issued 0 0
Preferred Stock, Shares Outstanding 0 0
Common Stock, Par or Stated Value Per Share $ 0.001 $ 0.001
Common Stock, Shares Authorized 190,000,000 190,000,000
Common Stock, Shares, Issued 5,284,318 5,284,318
Common Stock, Shares, Outstanding 5,284,318 5,284,318
v3.25.0.1
Statements of Operations - USD ($)
3 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Statements of Operations    
Revenue $ 26 $ 13
Cost of sales (2) (1)
Gross Profit 24 12
Operating Expenses    
General and administrative 20,977 15,608
Total Operating Expenses 20,977 15,608
Loss from Operations (20,953) (15,596)
Other Expense    
Interest expense - related party 1,412 942
Total other expense 1,412 942
Net Loss $ (22,365) $ (16,538)
Net loss per share of common stock - basic and diluted $ (0) $ (0)
Weighted average number of common shares outstanding - basic and diluted 5,284,318 5,284,318
v3.25.0.1
Statements of Changes in Stockholders' Deficit - USD ($)
Common Stock
Additional Paid-in Capital
Retained Earnings
Total
Equity, Attributable to Parent, Beginning Balance at Sep. 30, 2023 $ 5,285 $ 99,232 $ (202,918) $ (98,401)
Shares, Outstanding, Beginning Balance at Sep. 30, 2023 5,284,318      
Net Loss $ 0 0 (16,538) (16,538)
Equity, Attributable to Parent, Ending Balance at Dec. 31, 2023 $ 5,285 99,232 (219,456) (114,939)
Shares, Outstanding, Ending Balance at Dec. 31, 2023 5,284,318      
Equity, Attributable to Parent, Beginning Balance at Sep. 30, 2024 $ 5,285 99,232 (246,483) (141,966)
Shares, Outstanding, Beginning Balance at Sep. 30, 2024 5,284,318      
Net Loss $ 0 0 (22,365) (22,365)
Equity, Attributable to Parent, Ending Balance at Dec. 31, 2024 $ 5,285 $ 99,232 $ (268,848) $ (164,331)
Shares, Outstanding, Ending Balance at Dec. 31, 2024 5,284,318      
v3.25.0.1
Statements of Cash Flows - USD ($)
3 Months Ended
Dec. 31, 2024
Dec. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES    
Net Loss $ (22,365) $ (16,538)
Adjustments to Reconcile Net Loss To Net Cash Used by Operating Activities    
Depreciation and amortization 190 0
Changes in Operating Assets and Liabilities    
Decrease (increase) in prepaid expense 988 (5,092)
Decrease in inventory 2 1
Increase in accounts payable 4,710 5,512
Increase in accrued interest - related party 1,412 942
Net Cash Used by Operating Activities (15,063) (15,175)
CASH FLOWS FROM INVESTING ACTIVITIES    
Net Cash Used by Investing Activities 0 0
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from Related Party Debt 17,274 13,553
Net Cash Provided by Financing Activities 17,274 13,553
Net Increase (Decrease) in Cash 2,221 (1,622)
Cash at Beginning of Period 560 3,162
Cash at End of Period 2,771 1,540
Supplemental disclosure of cash flow information    
Cash paid for interest 0 0
Cash paid for Income taxes $ 0 $ 0
v3.25.0.1
NOTE 1: Condensed Financial Statements
3 Months Ended
Dec. 31, 2024
Notes  
NOTE 1: Condensed Financial Statements

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, 2024.

 

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 three months ended December 31, 2024, are not necessarily indicative of the results that may be expected for the year ending September 30, 2025.

v3.25.0.1
NOTE 2 - Going Concern
3 Months Ended
Dec. 31, 2024
Notes  
NOTE 2 - Going Concern

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 able 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 additional stockholder loans and debt or equity offerings to fund its business plan.  There is no assurance that the Company will be successful in raising additional funds.

v3.25.0.1
NOTE 3 - LINE OF CREDIT - RELATED PARTY
3 Months Ended
Dec. 31, 2024
Notes  
NOTE 3 - LINE OF CREDIT - RELATED PARTY

NOTE 3 – Line of Credit – Related Party

 

During the three months ending December 31, 2024, the Company amended the revolving promissory note agreement with its related party to extend the maturity date to December 31, 2025 and increase the maximum principal indebtedness to $170,000.  The revolving promissory note bears interest at the rate of 3.5%. The Company received proceeds under the line of credit of $14,727 and recorded interest expense of $1,204 during the three months ended December 31, 2024, resulting in principal balances of $141,348 and $126,621, with accrued interest of $9,441 and $8,237, at December 31, 2024 and September 30, 2024, respectively.

 

Also, during the three months ending December 31, 2024, the Company amended the revolving promissory note agreement with another principal stockholder to extend the maturity date to December 31, 2025 and increase the maximum principal indebtedness to $30,000.  The revolving promissory note bears interest at the rate of 3.5% per annum.  The Company received proceeds under the line of credit of $2,547 and recorded interest expense of $208 during the three months ended December 31, 2024, resulting in principal balances of $24,894 and $22,347 with accrued interest of $1,430 and $1,222, at December 31, 2024, and September 30, 2024, respectively.

v3.25.0.1
NOTE 4 - INVENTORY
3 Months Ended
Dec. 31, 2024
Notes  
NOTE 4 - INVENTORY

NOTE 4 – Inventory

 

The Company’s inventory is broken out by finished goods and raw materials.  The following is a summary of inventory:

 

 

December 31,

2024

 

September 30, 2024

 

Raw Materials

$

2,596

$

2,596

 

Finished Goods

 

 1,048

 

 1,050

 

    Total Inventory

$

 3,644

$

3,646

 

v3.25.0.1
NOTE 5 - SUBSEQUENT EVENTS
3 Months Ended
Dec. 31, 2024
Notes  
NOTE 5 - SUBSEQUENT EVENTS

NOTE 5 – Subsequent Events

 

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

v3.25.0.1
NOTE 4 - INVENTORY: Schedule of Inventory (Tables)
3 Months Ended
Dec. 31, 2024
Tables/Schedules  
Schedule of Inventory

 

 

December 31,

2024

 

September 30, 2024

 

Raw Materials

$

2,596

$

2,596

 

Finished Goods

 

 1,048

 

 1,050

 

    Total Inventory

$

 3,644

$

3,646

 

v3.25.0.1
NOTE 3 - LINE OF CREDIT - RELATED PARTY (Details) - USD ($)
3 Months Ended 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2024
Interest expense - related party $ 1,412 $ 942    
Related Party        
Long-Term Debt, Maturity Date       Dec. 31, 2025
Line of Credit Facility, Periodic Payment, Principal $ 170,000      
Line of Credit Facility, Interest Rate During Period 3.50%      
Proceeds from Secured Lines of Credit $ 14,727      
Interest expense - related party 1,204      
Line of Credit Facility, Periodic Payment 141,348   $ 126,621  
Line of Credit Facility, Increase, Accrued Interest $ 9,441   8,237  
Related Party 2        
Long-Term Debt, Maturity Date Dec. 31, 2024      
Line of Credit Facility, Periodic Payment, Principal $ 30,000      
Line of Credit Facility, Interest Rate During Period 3.50%      
Proceeds from Secured Lines of Credit $ 2,547      
Interest expense - related party 208      
Line of Credit Facility, Periodic Payment 24,894   22,347  
Line of Credit Facility, Increase, Accrued Interest $ 1,430   $ 1,222  
v3.25.0.1
NOTE 4 - INVENTORY: Schedule of Inventory (Details) - USD ($)
Dec. 31, 2024
Sep. 30, 2024
Details    
Raw Materials $ 2,596 $ 2,596
Finished Goods 1,048 1,050
Inventory $ 3,644 $ 3,646

Outdoor Specialty Products (PK) (USOTC:ODRS)
Historical Stock Chart
From Mar 2024 to Mar 2025 Click Here for more Outdoor Specialty Products (PK) Charts.