**WASHINGTON,        D.C. 20549**

**FORM        10-QSB**

**333-62690**

|  **Nevada**                                                                                       | ** 65-1000634**                                                         |
|--------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|
|  (State                  or other jurisdiction of incorporation                  or organization) |  (I.R.S.                  Employer Identification                  No.) |

| ** 370                  Amapola Ave. # 202,                  Torrance, California** | ** 90501**                   |
|------------------------------------------------------------------------------------------|-----------------------------------|
|  (Address                  of principal executive office)                           |  (Zip                  Code) |

**1-800-288-3099**

**CYBERADS,          INC.**

**1**

----

**Table            Of Contents**

**TABLE            OF CONTENTS**

|   **PART                      I - FINANCIAL                      INFORMATION** |
|------------------------------------------------------------------------------------------|
|                                                                                     |   |   |
| ITEM                      1.                                                             | FINANCIAL                      STATEMENTS |   |
|                                                                                     |   |   |
|                                                                                     | Consolidated                      Balance Sheets for the periods ended |   |
|                                                                                     | September                      30, 2006 and December 31, 2005 | 3 |
|                                                                                     |   |   |   |
|                                                                                     | Consolidated                      Statements of Operations for the Three Months and Nine                      Months  |   |
|                                                                                     | ended                      September 30, 2006 and 2005, and from inception of                      development |   |
|                                                                                     | stage                      January 1, 2005 to September 30, 2006 | 4 |
|                                                                                     |   |   |   |
|                                                                                     | Consolidated                      Statement of Stockholders' Equity | 5 |
|                                                                                     |   |   |
|                                                                                     | Consolidated                      Unaudited Statement of Cash Flows for the Nine Months |   |
|                                                                                     | ended                      September 30, 2006 and 2005, and from inception of                      development |   |
|                                                                                     | stage                      January 1, 2005 to September 30, 2006 | 6 |
|                                                                                     |   |   |   |
|                                                                                     | Notes                      to Consolidated Financial Statements | 7 |
|                                                                                     |   |   |
| ITEM                      2.                                                             | MANAGEMENT'S                      DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND |   |
| RESULTS                      OF OPERATIONS                                               | 13 |
|                                                                                     |   |   |
| ITEM                      3.                                                             | CONTROLS                    AND PROCEDURES | 16 |
|                                                                                     |   |   |
|  **PART                      II - OTHER INFORMATION**                               |
|                                                                                     |   |   |
| ITEM                      6.                                                             | EXHIBITS | 16 |
|                                                                                     |   |   |
| SIGNATURES                                                                               | 17 |

**2**

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**Table                Of                Contents**

| **RHINO                    OUTDOOR INTERNATIONAL, INC**                           |   |
|-----------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                    BALANCE SHEETS**                                |   |
| **SEPTEMBER                    30, 2006**                                         |   |
|                                                                              |   |   |   |   |   |   |   |
|                                                                              |   |   |   |   |   |   |   |
|                                                                              |   |   |   | September                    30 |   | December                    31 |   |
|                                                                              |   |   |   | 2006 |   | 2005 |   |
| **ASSETS**                                                                        |   |   |   |   |   |
|                                                                              |   |   |   |   |   |   |   |
|  **CURRENT                  ASSETS**                                         |   |   |   |   |   |
| Cash                                                                              |   |   |   |   | $ | - |   | $ | - |   |
| Deposits                                                                          |   |   |   |   |   | 15,000 |   |   | 15,000 |   |
| Loan                    receivable                                                |   |   |   |   |   | 7,500 |   |   | 7,500 |   |
|  Total                    Current Assets                                     |   |   |   |   |   | 22,500 |   |   | 22,500 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |
| **PROPERTY                    AND EQUIPMENT, NET**                                |   |   |   |   |   |   |   |   | - |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |
| **TOTAL                    ASSETS**                                               |   |   |   |   | $ | 22,500 |   | $ | 22,500 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |
| **LIABILITIES                    AND STOCKHOLDERS' EQUITY (DEFICIT)**             |   |   |   |   |   |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |
| **CURRENT                    LIABILITIES**                                        |   |   |   |   |   |   |   |   |   |   |
| Accounts                    payable                                               |   |   |   |   | $ | 1,180,485 |   | $ | 1,063,251 |   |
| Accounts                    payable- checks in excess of bank balance             |   |   |   |   |   | 9,939 |   |   | 15,108 |   |
| Accrued                    liabilities                                            |   |   |   |   |   | 940,810 |   |   | 971,762 |   |
| Deferred                    revenue                                               |   |   |   |   |   | 174,453 |   |   | 172,453 |   |
| Notes                    payable                                                  |   |   |   |   |   | 294,192 |   |   | 294,192 |   |
| Notes                    payable - related party                                  |   |   |   |   |   | 669,731 |   |   | 1,226,161 |   |
|  Total                    Current Liabilities                                |   |   |   |   |   | 3,269,610 |   |   | 3,742,927 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |
| **COMMITMENTS                    AND CONTINGENCIES**                              |   |   |   |   |   | - |   |   | - |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |
| **STOCKHOLDERS'                    EQUITY (DEFICIT)**                             |   |   |   |   |   |   |   |   |   |   |
| Preferred                    stock, $.001 par value; 5,000,000 shares authorized, |   |   |   |   |   |   |   |   |   |   |
| 1,835,660                    issued and outstanind                                |   |   |   |   |   | 1,836 |   |   | 1,836 |   |
| Common                    stock, $.001 par value; 500,000,000 shares authorized,  |   |   |   |   |   |   |   |   |   |   |
| 132,846,915                    and 123,351,777 shares issued and oustanding,      |   |   |   |   |   |   |   |   |   |   |
| respectively                                                                      |   |   |   |   |   | 6,849 |   |   | 123,352 |   |
| Additional                    paid-in capital - preferred stock                   |   |   |   |   |   | 99,000 |   |   | 99,000 |   |
| Additional                    paid-in capital - common stock                      |   |   |   |   |   | 32,464,399 |   |   | 23,073,901 |   |
| Accumulated                    deficit prior to curent development stage          |   |   |   |   |   | (19,234,546 | ) |   | (19,234,546 | ) |
| Accumulated                    deficit in development stage                       |   |   |   |   |   | (16,584,648 | ) |   | (7,783,970 | ) |
| Total                    Stockholders' Equity (Deficit)                           |   |   |   |   |   | (3,247,110 | ) |   | (3,720,427 | ) |
|                                                                              |   |   |   |   |   |   |   |   |   |   |
| **TOTAL                    LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)**       |   |   |   |   | $ | 22,500 |   | $ | 22,500 |   |

**3**

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**Table            Of Contents**

| **RHINO                    OUTDOOR INTERNATIONAL, INC**      |
|--------------------------------------------------------------|
| **CONSOLIDATED                    STATEMENTS OF OPERATIONS** |
| **SEPTEMBER                    30, 2006**                    | From |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | inception                    of |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | development |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | From |   | stage |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | September                    29, |   | January                    1, |
|                                                         |   |   |   |   | Nine                    Months |   |   | Nine                    Months |   |   | Three                    Months |   | Three                    Months |   | 1999 |   | 2005 |
|                                                         |   |   |   |   | Ended |   |   | Ended |   |   | Ended |   | Ended |   | (Inception)                    to |   | to |
|                                                         |   |   |   |   | September                    30 |   |   | September                    30 |   |   | September                    30 |   | September                    30 |   | June                    30 |   | December                    31 |
|                                                         |   |   |   |   | 2006 |   |   | 2005 |   |   | 2006 |   | 2005 |   | 2006 |   | 2005 |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **REVENUES**                                                 |   | $ | -                      |   | $ | - |   | $ |   | $ |   |   | -                      |   |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **COST                    OF GOODS SOLD**                    |   | $ |   |   | $ |   |   | $ |   | $ |   |   |   |   | -                      |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OPERATING                    EXPENSES**                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         | General                    and administrative |   |   | 970,398                      |   |   | 5,451,092                      |   |   | 126,186   |   | 1,632,190                      |   | 1,652,129                      |   | 681,731                      |
|                                                         | Marketing                    expense |   |   | 4,084,708                      |   |   | -                      |   |   | 3,491,933                      |   | -                      |   | 9,690,321                      |   | 5,605,613                      |
|                                                         | Selling                    expenses |   |   | 3,689,288                      |   |   | 730,406                      |   |   | 3,524,433                      |   | 3,692                      |   | 5,101,541                      |   | 1,412,253                      |
|                                                         |   | **TOTAL                    OPERATING EXPENSES** |   |   | 8,744,394                      |   |   | 6,181,498                      |   |   | 7,142,552                      |   | 1,635,882                      |   | 16,443,991                      |   | 7,699,597                      |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **LOSS                    FROM OPERATIONS**                  |   |   | (8,744,394) |   |   | (6,181,498) |   |   | (7,142,552) |   | (1,635,882) |   | (16,443,991) |   | (7,699,597) |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                    INCOME (EXPENSES)**               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         | Interest                    income |   |   |   |   |   |   |   |   |   |   |   |   | 5,430                      |   | 5,430                      |
|                                                         | Interest                    expense |   |   | (56,284) |   |   | (5,502) |   |   | (18,638) |   | (5,502) |   | (53,784) |   | 2,500                      |
|                                                         | Loss                    on disposal of asset |   |   | -                      |   |   |   |   |   |   |   |   |   | (78,132) |   | (78,132) |
|                                                         | Gain                    on forgiveness of debt |   |   |   |   |   |   |   |   |   |   |   |   | (14,171) |   | (14,171) |
|                                                         |   | **TOTAL                    OTHER INCOME (EXPENSES)** |   |   | (56,284) |   |   | (5,502) |   |   | (18,638) |   | (5,502) |   | (140,657) |   | (84,373) |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **LOSS                    BEFORE TAXES**                     |   |   | (8,800,678) |   |   | (6,187,000) |   |   | (7,161,190) |   | (1,641,384) |   | (16,584,648) |   | (7,783,970) |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                    TAXES**                          |   |   | -                      |   |   | 800                      |   |   |   |   | - |   | - |   | - |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                    LOSS**                              |   | $ | (8,800,678) |   | $ | (6,187,800) |   | $ | (7,161,190) | $ | (1,641,384) |   | (16,584,648) |   | (7,783,970) |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         | NET                    LOSS PER COMMON SHARE, |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   | BASIC                    AND DILUTED |   | $ | (0) |   | $ | (0.154) |   |   |   |   | (0.029) |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         | WEIGHTED                    AVERAGE NUMBER OF |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   | COMMON                    STOCK SHARES |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   | OUTSTANDING,                    BASIC AND DILUTED |   |   | 130,431,869                      |   |   |   |   |   |   |   |   |   |   |   |   |

**4**

----

**Table            Of Contents**

| **RHINO                    OUTDOOR INTERNATIONAL, INC**                         |
|---------------------------------------------------------------------------------|
| **CONSOLIDATED                    STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)** |
| **SEPTEMBER                    30, 2006**                                       |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   | Additional |   |   |   | Deferred |   |   |
|                                                                            |   | Convertible                    Preferred Stock |   | Common                    Stock |   | Paid-in |   | Accumulated |   | Financing |   |   |
|                                                                            |   | Shares |   | Amount |   | Shares |   | Amount |   | Capital |   | Deficit |   | Costs |   | Totals |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                    December 31, 2002                                   | -                      | $ | -                      | $ | 147,748                      | $ | 148                      | $ | 13,833,042                      | $ | (17,512,915) | $ | (7,015) |   | (3,686,740) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |
| Shares                    issued in exchange for debt                           | 835,660                      |   | 836                      |   | 12,500                      |   | 13                      |   | 922,312                      |   |   |   |   |   | 923,161 |
|                                                                            |   |   |   |   |   |   |   |   |   | -                      |   | -                      |   |   |   | - |
| Amortization                    of deferred financing cost                      |   |   |   |   |   |   |   |   |   |   |   |   | 7,015                      |   | 7,015 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |
| Shares                    issued in exchange for services                       |   |   |   |   | 22,750                      |   | 23                      |   | 608,727                      |   | -                      |   |   |   | 608,750 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |
| Shares                    issued for interest on convertible debt               |   |   |   |   | 260                      |   | -                      |   | 53,300                      |   |   |   |   |   | 53,300 |
|                                                                            |   |   |   |   |   |   |   |   |   | -                      |   | -                      |   |   |   | - |
| Loss                    for year ending December 31, 2003                       | -                      |   |  -                      |   | -                      |   | -                      |   | -                      |   | (1,201,111) |   |   |   | (1,201,111) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                    December 31, 2003                                   | 835,660                      | $ | 836                      |   | 183,258                      | $ | 184                      | $ | 15,417,381                      | $ | (18,714,026) |   |   |  $ | (3,295,625) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Options                    exercised                                            |   |   |   |   | 5,000                      |   | 5                      |   | 64,995                      |   |   |   |   |   | 65,000 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |
| Shares                    issued in exchange for payable to shareholder         |   |   |   |   | 20,000                      |   | 20                      |   | 214,277                      |   |   |   |   |   | 214,297 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |
| Shares                    issued in exchange for settlement                     |   |   |   |   | 1,000                      |   | 1                      |   | 109,999                      |   |   |   |   |   | 110,000 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |
| Shares                    issued in exchange for compensation & services    |   |   |   |   | 23,000                      |   | 23                      |   | 386,477                      |   |   |   |   |   | 386,500 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |
| Net                    loss for year ending December 31, 2004                   | -                      |   | -                      |   | -                      |   | -                      |   | -                      |   | (520,520) |   |   |   | (520,520) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                    December 31, 2004                                   | 835,660                      | $ | 836                      | $ | 232,258                      | $ | 233                      | $ | 16,193,129                      | $ | (19,234,546) |   |   |  $ | (3,040,348) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for consulting expense                         |   |   |   |   | 996,260                      |   | 996                      |   | 6,945,396                      |   |   |   |   |   | 6,946,392 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |
| Shares                    issued for debt                                       |   |   |   |   | 5,000                      |   | 5                      |   | 57,495                      |   |   |   |   |   | 57,500 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |
| Shares                    issued for compensation                               | 1,000,000                      |   | 1,000                      |   |   |   |   |   | 99,000                      |   |   |   |   |   | 100,000 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |
| Net                    loss for year ending December 31, 2005                   |   |   |   |   |   |   |   |   |   |   | (7,783,970) |   |   |   | (7,783,970) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                    December 31, 2005                                   | 1,835,660                      |   | 1,836                      |   | 1,233,518                      |   | 1,234                      |   | 23,295,020                      |   | (27,018,516) |   |   |   | (3,720,426) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for consulting expense                         |   |   |   |   | 94,951                      |   | 95                      |   | 360,185                      |   |   |   |   |   | 360,280 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    loss for period ending March 31, 2006                    |   |   |   |   |   |   |   |   |   |   | (551,012) |   |   |   | (551,012) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                    March 31, 2006                                      | 1,835,660                      |   | 1,836                      |   | 1,328,469                      |   | 1,329                      |   | 23,655,205                      |   | (27,569,528) |   |   |   | (3,911,158) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |
| Shares                    issued for accrued payroll                            |   |   |   |   | 205,000                      |   | 205                      |   | 409,795                      |   |   |   |   |   | 410,000 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |
| Shares                    issued for consulting expense                         |   |   |   |   | 439,000                      |   | 439                      |   | 885,891                      |   |   |   |   |   | 886,330 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    loss for period ending June 30, 2006                     |   |   |   |   |   |   |   |   |   |   | (1,088,476) |   |   |   | (1,088,476) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                    June 30, 2006                                       | 1,835,660                      |   | 1,836                      |   | 1,972,469                      |   | 1,973                      |   | 24,950,891                      |   | (28,658,004) |   | -                      |   | (3,703,304) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for consulting expense                         |   |   |   |   | 4,876,350                      |   | 4,876                      |   | 7,612,508                      |   |   |   |   |   | 7,617,384 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |
| Reverse                    stock split                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |
| Net                    loss for period ending June 30, 2006                     |   |   |   |   |   |   |   |   |   |   | (7,161,190) |   |   |   | (7,161,190) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                    September 30, 2006                                  | 1,835,660                      |   | 1,836                      |   | 6,848,819                      |   | 6,849                      |   | 32,563,399                      |   | (35,819,194) |   | -                      |   | (3,247,110) |

**5**

----

**Table            Of Contents**

| **RHINO                    OUTDOOR INTERNATIONAL, INC**             | From                                                                        |                                                         | From                                |
|---------------------------------------------------------------------|-----------------------------------------------------------------------------|--------------------------------------------------------------|-------------------------------------|
| **CONSOLIDATED                    STATEMENTS OF CASH FLOWS**        | inception                    of                                             |                                                         | inception                    of     |
| **SEPTEMBER                    30, 2006**                           | development                                                                 |                                                         | development                         |
|                                                                |                                                                        |                                                         |                                |   |   |   |   |   |   | stage |   | stage |
|                                                                |                                                                        |                                                         |                                |   |   |   |   |   |   | January                    1, |   | January                    1, |
|                                                                |                                                                        |                                                         |                                |   |   |   |   |   |   | 2005 |   | 2005 |
|                                                                |                                                                        |                                                         |                                |  Nine                    Months |   |  Nine                    Months |   | to |   | to |
|                                                                |                                                                        |                                                         |                                |  Ended |   |  Ended |   | June                    30 |   | December                    31 |
|                                                                |                                                                        |                                                         |                                |  September                    30 |   |  September                    30 |   | 2006 |   | 2005 |
|                                                                |                                                                        |                                                         |                                | 2006 |   | 2005 |   |   |   |   |
| **CASH                    FLOWS FROM OPERATING ACTIVITIES:**        |                                                                        |                                                         |                                |   |   |   |   |   |   |
|                                                                | Net                    loss                                                 | $                                                            | (8,800,678)                         |   | $ | (6,187,800) |   | (16,584,648) |   | (7,783,970) |
|                                                                | Unearned                    revenue                                         |                                                         |                                |   |   |   |   | -                      |   |   |
|                                                                | Stock                    issued for accrued wages                           |                                                         | 410,000                        |   |   |   |   |   |   | 100,000                      |
|                                                                | Stock                    issued for services                                |                                                         | 8,263,996                      |   |   | 6,088,119                      |   | 15,210,388                      |   | 6,946,392                      |
|                                                                | Forgiveness                    of debt                                      |                                                         |                                |   |   |   |   |   |   | (2,500) |
|                                                                | Loss                    on abandonment of assets                            |                                                         |                                |   |   |   |   |   |   | 14,171                      |
|                                                                | Amortization                    and depreciation                            |                                                         |                                |   |   |   |   | -                      |   |   |
|                                                                | Adjustments                    to reconcile net (loss) to net cash          |                                                         |                                |   |   |   |   | -                      |   |   |
|                                                                |                                                                        | provided                    (used) by operating activities:  |                                |   |   |   |   |   | -                      |   |   |
|                                                                | Decrease                    (increase) in note receivable                   |                                                         |                                |   |   |   |   | -                      |   |   |
|                                                                | Decrease                    (increase) in accounts receivable               |                                                         |                                |   |   |   |   | -                      |   |   |
|                                                                | Decrease                    (increase) in prepaids                          |                                                         |                                |   |   |   |   | -                      |   | -                      |
|                                                                | Decrease                    in deposits                                     |                                                         |                                |   |   |   |   | -                      |   |   |
|                                                                | Increase                    (decrease) in interest payable                  |                                                         |                                |   |   |   |   |  -                      |   |   |
|                                                                | Increase                    (decrease) in accounts payable-checks in excess |                                                         | (5,169)                             |   |   |   |   |   |   | 15,108                      |
|                                                                | Increase                    (decrease) in accounts payable                  |                                                         | 117,233                        |   |   | (25,002) |   |   |   | 194,029                      |
|                                                                | Increase                    (decrease) in accrued payroll                   |                                                         |                                |   |   |   |   |   |   |   |
|                                                                | Increase                    (decrease) in accrued liabilities               |                                                         | (30,952)                            |   |   | 800                      |   |   |   | 318,626                      |
|                                                                | Increase                    (decrease) in deferred revenue                  |                                                         | 2,000                          |   |   | 142,472                      |   |   |   | 172,453                      |
|                                                                | Increase                    (decrease) in inventory                         |                                                         |                                |   |   |   |   |   |   |   |
|                                                                |                                                                        | Net                    cash used by operating activities     |                                | (43,570) |   |   | 18,589                      |   | (1,374,260) |   | (25,691) |
|                                                                |                                                                        |                                                         |                                |   |   |   |   |   |   |   |   |   |
| **CASH                    FLOWS FROM INVESTING ACTIVITIES:**        |                                                                        |                                                         |                                |   |   |   |   |   |   |
|                                                                | Increase                    in loan receivable                              |                                                         |                                |   |   |   |   | (7,500) |   | (7,500) |
|                                                                | Increase                    in deposits                                     |                                                         |                                |   |   |   |   | (6,415) |   | (6,415) |
|                                                                | Cash                    paid for marketing rights                           |                                                         |                                |   |   | (210,000) |   | -                      |   |   |
|                                                                | Cash                    paid for equipment purchased                        |                                                         |                                |   |   |   |   | -                      |   |   |
|                                                                | Cash                    paid for leasehold improvements                     |                                                         |                                |   |   |   |   | -                      |   |   |
|                                                                |                                                                        | Net                    cash used by investing activities     |                                | -                      |   |   | (210,000) |   |  -                      |   | (13,915) |
|                                                                |                                                                        |                                                         |                                |   |   |   |   |   |   |   |   |   |
| **CASH                    FLOWS FROM FINANCING ACTIVITIES:**        |                                                                        |                                                         |                                |   |   |   |   |   |   |
|                                                                | Advances                    from related parties                            |                                                         |                                |   |   | 191,609                      |   | 39,606                      |   | 39,606                      |
|                                                                | Proceeds                    from issuance of convertible debt               |                                                         |                                |   |   |   |   | -                      |   |   |
|                                                                | Proceeds                    from notes payable                              |                                                         | 95,070                         |   |   |   |   | 95,070   |   |   |
|                                                                | Payment                    of notes payable                                 |                                                         | (51,500)                            |   |   |   |   | (51,500) |   |   |
|                                                                | Proceeds                    from sale of common stock                       |                                                         |                                |   |   |   |   | -                      |   |   |
|                                                                |                                                                        | Net                    cash provided by financing activities |                                | 43,570                      |   |   | 191,609                      |   | 43,570                      |   | 39,606.00                      |
|                                                                |                                                                        |                                                         |                                |   |   |   |   |   |   |   |   |   |
| Change                    in cash                                   |                                                                        | (0)                                                          |                                |   | 198                      |   |   |   |   |
|                                                                |                                                                        |                                                         |                                |   |   |   |   |   |   |   |   |   |
| **Cash,                    beginning of period**                    |                                                                        |                                                         |                                |   | -                      |   |   |   |   |
|                                                                |                                                                        |                                                         |                                |   |   |   |   |   |   |   |   |   |
| **Cash,                    end of period**                          | $                                                                           | (0)                                                          |                                | $ | 198                      |   | -                      |   | -                      |
|                                                                |                                                                        |                                                         |                                |   | (0) |   |   |   |   |   |   |   |
| **SUPPLEMENTAL                    CASH FLOW INFORMATION:**          |                                                                        |                                                         |                                |   |   |   |   |   |   |
| Interest                    paid                                    | $                                                                           | -                                                       |                                | $ | -                      |   | 5,502                      |   | 5,502                      |
| Income                    taxes paid                                | $                                                                           | -                                                       |                                | $ | -                      |   | -                      |   | -                      |
|                                                                |                                                                        |                                                         |                                |   |   |   |   |   |   |   |   |   |
| **NON-CASH                    INVESTING AND FINANCING ACTIVITIES:** |                                                                        |                                                         |                                |   |   |   |   |   |   |
| Common                    stock issued for equipment                | $                                                                           | -                                                       |                                | $ | -                      |   | -                      | $ |   |
| Common                    stock issued for debt                     | $                                                                           |                                                         |                                | $ | -                      |   | 57,500                      | $ | 57,500                      |
| Common                    stock issued for technology license       | $                                                                           | -                                                       |                                | $ | -                      |   | -                      | $ |   |

**6**

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**Table            Of Contents**

**Rhino          Outdoor International, Inc.**

**(A          Development Stage Company)**

**CONDENSED          NOTES TO THE INTERIM FINANCIAL STATEMENTS**

**SEPTEMEBER          30, 2006**

----

**NOTE          1 - BASIS OF PRESENTATION**

**NOTE          2 - SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES**

**7**

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**Table                Of Contents**

**Rhino            Outdoor International, Inc.**

**(A            Development Stage Company)**

**CONDENSED            NOTES TO THE INTERIM FINANCIAL STATEMENTS**

**SEPTEMEBER            30, 2006**

----

**8**

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**Table              Of Contents**

**Rhino            Outdoor International, Inc.**

**(A            Development Stage Company)**

**CONDENSED            NOTES TO THE INTERIM FINANCIAL STATEMENTS**

**SEPTEMEBER            30, 2006**

----

**NOTE          3 - BANK OVERDRAFTS**

**NOTE          4 - CAPITAL STOCK **

**9**

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**Table              Of Contents**

**Rhino            Outdoor International, Inc.**

**(A            Development Stage Company)**

**CONDENSED            NOTES TO THE INTERIM FINANCIAL STATEMENTS**

**SEPTEMEBER            30, 2006**

----

**NOTE          5 - COMMITMENTS AND CONTINGENCIES**

**10**

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**Table                Of Contents**

**Rhino              Outdoor International, Inc.**

**(A              Development Stage Company)**

**CONDENSED              NOTES TO THE INTERIM FINANCIAL STATEMENTS**

**SEPTEMEBER              30, 2006**

----

**NOTE          6 - NOTES PAYABLE**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | September                    30, 2006 |    | December                    31, 2005 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|---------|--------------------------------------|
| Note                    payable; was due in installments of $5,000 on January 15, 2004                    and                    February 15, 2004 with final payment due March 15, 2004, plus                    interest at                    10% per annum; secured by all of the Company's accounts receivable,                    inventories, and computer hardware and software and is personally                    guaranteed by two former officers of the Company. In default. | $                                     | 109,000 |                                 | $ | 109,000 |
| Note                    payable to cellular phone service provider; due in installments                    of $92,596                    payable on January 2, 2005 and August 2, 2005, plus interest                    at libor                    index. In default.                                                                                                                                                                                                                    |                                  | 185,192 |                                 |   | 185,192 |
| Total                    Notes Payable.                                                                                                                                                                                                                                                                                                                                                                                                                                                    | $                                     | 294,192 |                                 | $ | 294,192 |

**NOTE          7 - RELATED PARTY TRANSACTIONS**

|                                                                                                                                                                                           | September                    30, 2006 |    | December                    31, 2005 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|---------|--------------------------------------|
| Advance                    due to a corporation owned by a former officer of the Company,                    accruing                    interest at libor index, due on demand and unsecured. | $                                     | 54,000  |                                 | $ | 54,000 |
| Advance                    due to a former officer of the Company, bearing interest at 5%                    per annum,                    due on demand and unsecured                         |                                  | 583,231 |                                 |   | 1,139,661 |
| Advance                    due to a current officer of the Company, bearing no interest,                    due on                    demand, and unsecured                                    |                                  | 32,500  |                                 |   | 32,500 |
|                                                                                                                                                                                           | $                                     | 669,731 |                                 | $ | 1,226,161 |

**11**

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**Table                Of Contents**

**Rhino              Outdoor International, Inc.**

**(A              Development Stage Company)**

**CONDENSED              NOTES TO THE INTERIM FINANCIAL STATEMENTS**

**SEPTEMEBER              30, 2006**

----

**NOTE          8 - ACQUISITION**

**NOTE          9 - SUBSEQUENT EVENT**

**12**

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**Table              Of Contents**

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

**RESULTS            OF OPERATIONS (3 mos.)**

|    |   | Three                      months ended September 30                                                             |   | Increase                                                                                                                |   |
|---------|--------|------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------|--------|
|    |   | 2006                                                                                                             |   | 2005                                                                                                                    |   | Amount |   | % |   |
| Revenue |   |                        $                               -  |   |                                               $          -  |   |                                               $          -  |   |                        - |   |

|                                                                          |   | Three                      months ended September 30 |   | Decrease                                              |   |
|-------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|-------------------------------------------------------|--------|
|                                                                          |   | 2006                                                 |   | 2005                                                  |   | Amount |   | % |   |
|                        General                      & administrative |   | $                      126,186                       |   |                        $ 1,632,190     |   |                        (1,506,004) |   |                        92% |   |

**13**

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**Table                Of Contents**

|                                              |   | Three                      months ended September 30 |   | Increase                     |   |
|---------------------------------------------------|--------|------------------------------------------------------|--------|------------------------------|--------|
|                                              |   | 2006                                                 |   | 2005                         |   | Amount |   | % |   |
| Selling                      & Mrktg. Expense |   | $                      7,016,366                     |   | $                      3,692 |   | $                      7,012,674 |   | 1,899% |   |

|                                  |   | Three                      months ended September 30 |   | Increase |   |
|---------------------------------------|--------|------------------------------------------------------|--------|----------|--------|
|                                  |   | 2006                                                 |   | 2005     |   | Amount |   | % |   |
| Interest                      Expense |   | $                      18,638                        |   | $5,502   |   | $                      13,136 |   | 70% |   |

**RESULTS            OF OPERATIONS (9 mos.) **

|    |   | Nine                      months ended September 30                            |   | Increase                                                                       |   |
|---------|--------|--------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|
|    |   | 2006                                                                           |   | 2005                                                                           |   | Amount |   | % |   |
| Revenue |   | $                               0 |   | $                               0 |   | $                               0 |   | - |   |

|                                                                          |   | Nine                      months ended September 30 |   | Decrease                         |   |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------|--------|----------------------------------|--------|
|                                                                          |   | 2006                                                |   | 2005                             |   | Amount |   | % |   |
|                        General                      & administrative |   | $                      970,398                      |   | $                      5,451,092 |   | ($4,480,694) |   |                        461% |   |

**14**

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**Table                  Of Contents**

|                                              |   | September                      30 |   | Increase                       |   |
|---------------------------------------------------|--------|-----------------------------------|--------|--------------------------------|--------|
|                                              |   | 2006                              |   | 2005                           |   | Amount |   | % |   |
| Selling                      & Mrktg. Expense |   | $                      7,773,996  |   | $                      730,406 |   | $7,043,590 |   | 964% |   |

|                                  |   | Nine                      months ended September 30 |   | Increase                                                     |   |
|---------------------------------------|--------|-----------------------------------------------------|--------|--------------------------------------------------------------|--------|
|                                  |   | 2006                                                |   | 2005                                                         |   | Amount |   | % |   |
| Interest                      Expense |   | $                      56,284                       |   | $5,502          |   | $                      50,782 |   | 922% |   |

**FINANCIAL            POSITION & LIQUIDITY AND CAPITAL RESOURCES **

|   |   | Nine                      months ended June 30                                 |   | Decrease                 |   |
|--------|--------|--------------------------------------------------------------------------------|--------|--------------------------|--------|
|   |   | 2006                                                                           |   | 2005                     |   | Amount |   | % |   |
| Cash   |   | $                               0 |   | $                      0 |   | $                      0 |   | na |   |

**ACQUISITION            OF SUBSIDIARY **

**15**

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**Table                    Of Contents**

**ITEM            3.            CONTROLS AND PROCEDURES **

**PART            II - OTHER INFORMATION**

**ITEM            6. EXHIBITS**

| **Exhibit                      Number** | **Description                      of Document**                                 |
|-----------------------------------------|----------------------------------------------------------------------------------|
|                                    |                                                                             |
| 31.1                                    | Rule                      13a-14(a)/15d-14(a)                      Certification |
| 32.1                                    | Section                      1350                      Certification             |

**16**

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**Table                Of Contents**

**SIGNATURES**

| Date:                      November 22, 2006 | RHINO                      OUTDOOR INTERNATIONAL, INC.                                                                                                                                                                                                                                                                                                             |
|----------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                         |                                                                                                                                                                                                                                                                                                                                                               |
|                                         | By:                      /s/ WALT                      TATUM                                                                               Walt Tatum, Chief Executive Officer |