SECURITIES AND EXCHANGE

COMMISSION

WASHINGTON, D.C. 20549



FORM 10-K



(Mark One)

xANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER
31, 2011



oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD
FROM ______ TO



Commission file
number: 333-175212



____________________________________________________________________________

Autovative Products, Inc.

(Name of small business issuer in its charter)

____________________________________________________________________________



|Nevada                                                                                 | 7812                                                             | 26-4574088                                          
|-------------------------------------------------------------------------------------- | ---------------------------------------------------------------- | ----------------------------------------------------
|(State or Other jurisdiction
        of
        incorporation
        or organization) | (Primary Standard Industrial
        Classification Code Number) | (I.R.S. Employer Identification
        Code Number)



502 N. Santa Fe Avenue, Ste. D, Vista, CA
92083

Telephone 760-732-5868

(Address and telephone number of registrant’s
principal executive offices and principal place of business)

______________________________________________________________________



|Securities registered under Section 12(b) of the Exchange Act:      
|--------------------------------------------------------------------
|                                                                    
|Title of each class registered:                                     
|None                                                                
|                                                                    
|Securities registered under Section 12(g) of the Exchange Act:  None



Indicate by check mark if the registrant is a well-known seasoned
issuer, as defined in Rule 405 of the Securities Act. Yes o   No x



Indicate by check mark if the registrant is not required to file
reports pursuant to Section 13 or Section 15(d) of the Act. Yes o  
No x



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 x       No o



Indicate by check mark whether the registrant
has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted
and posted 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 and post such files). o Yes o  No



Indicate by check mark if disclosure of delinquent
filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained,
to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III
of this Form 10-K or any amendment to this Form 10-K. o



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



|Large accelerated filer                                                     | o | Accelerated filer         | o
|--------------------------------------------------------------------------- | - | ------------------------- | -
|                                                                            |   |                           |  
|Non-accelerated filer
        (Do not check if a smaller reporting company) | o | Smaller reporting company | x



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



State issuer's revenues for its most recent fiscal year:$116,884.
State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the
price at which the common equity was last sold, or the average bid and asked price of such common equity, as of December 31, 2011:
1,235,977 (Company’s shares were not yet trading at December 31, 2011).



State the number of shares outstanding of each of the issuer's classes
of common stock as of December 31, 2011: 8,585,977.



Documents incorporated by reference: None.











TABLE OF CONTENTS



|ITEM 1. DESCRIPTION OF BUSINESS.                                                                         | 3     
|-------------------------------------------------------------------------------------------------------- | ------
|GENERAL                                                                                                  | 3     
|HISTORICAL DEVELOPMENT                                                                                   | 3     
|BUSINESS                                                                                                 | 4     
|EMPLOYEES                                                                                                | 10    
|RISK FACTORS                                                                                             | 10    
|RISKS RELATING TO OUR BUSINESS                                                                           | 10    
|ITEM 2. DESCRIPTION OF PROPERTY.                                                                         | 17    
|ITEM 3. LEGAL PROCEEDINGS.                                                                               | 17    
|ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.                                             | 17    
|ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.                                        | 18    
|RECENT SALES OF UNREGISTERED SECURITIES                                                                  | 18    
|PURCHASES OF EQUITY SECURITIES BY THE REGISTRANT AND AFFILIATED PURCHASERS                               | 18    
|ITEM 6. SELECTED FINANCIAL DATA.                                                                         | 18    
|ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.                                       | 19    
|RESULTS OF OPERATIONS                                                                                    | 20    
|LIQUIDITY AND CAPITAL RESOURCES                                                                          | 20    
|APPLICATION OF CRITICAL ACCOUNTING POLICIES                                                              | 21    
|ITEM 7A QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                       | 22    
|ITEM 8. FINANCIAL STATEMENTS.                                                                            | F1-F13
|ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.            | 23    
|ITEM 9A. CONTROLS AND PROCEDURES.                                                                        | 23    
|ITEM 9B SUBSEQUENT EVENTS                                                                                | 24    
|ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.                                             | 24    
|SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE                                                  | 25    
|COMMITTEES OF THE BOARD OF DIRECTORS                                                                     | 25    
|COMPENSATION OF DIRECTORS                                                                                | 27    
|CODE OF ETHICS                                                                                           | 27    
|ITEM 11. EXECUTIVE COMPENSATION.                                                                         | 28    
|SUMMARY OF CASH AND CERTAIN OTHER COMPENSATION                                                           | 28    
|STOCK OPTION AND STOCK APPRECIATION RIGHTS                                                               | 29    
|OPTION EXERCISES AND HOLDINGS                                                                            | 29    
|EMPLOYMENT AGREEMENTS                                                                                    | 30    
|ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS. | 30    
|SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS                                       | 30    
|SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT                                           | 30    
|ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.                                                 | 31    
|ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES                                                         | 31    
|ITEM 15. EXHIBITS AND REPORTS ON FORM 8-K                                                                | 32    
|                                                                                                         |       
|SIGNATURE PAGE                                                                                           | 33    



2









PART I



ITEM 1. DESCRIPTION OF BUSINESS.



Statements in this Form 10-K Annual Report
may be "forward-looking statements." Forward-looking statements include, but are not limited to, statements that express
our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other
future events or conditions. These statements are based on current expectations, estimates and projections about our business based,
in part, on assumptions made by our management. These statements are not guarantees of future performance and involve risks, uncertainties
and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially
from what is expressed or forecasted in the forward-looking statements due to numerous factors, including those described above
and those risks discussed from time to time in this Form 10-K Annual Report, including the risks described under "Risk Factors"
and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and in other documents which
we file with the Securities and Exchange Commission.



In addition, such statements could be affected
by risks and uncertainties related to our financial condition, factors that affect our industry, market and customer acceptance,
competition, government regulations and requirements and pricing, as well as general industry and market conditions and growth
rates, and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and we
do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this
Form 10-K Annual Report.



GENERAL



Autovative Products, Inc was incorporated in
the state of Nevada on December 8, 2004. We were formed to develop businesses, assets and opportunities, some acquired and contributed
from third parties and our founding shareholders, in the trucking/automobile special parts production and distribution industry
and some related fields. The Company believes it will be able to successfully compete in the industry marketplace by controlling
production costs, and increasing sales through the trucking fleet industry and the retail markets. In the near future we plan on
enhancing our online marketing through website development which we believe will aid with online retail and wholesale sales. (See
“Business Strategy” Page 17).



HISTORICAL DEVELOPMENT



Autovative Products, Inc. is a distributor
of automotive specialty parts. We have developed and produced two products for both automobile and fleet uses. One product is the
Portable Tow Truck, a traction aid which has been successful in helping drivers get their vehicles unstuck from snow, ice,
mud and sand.



The other product is the Overhead Door Saver,
a heavy-duty spring device for use in fleets of trucks with overhead doors. It cushions the shock of constant door openings which
we believe will reduce overhead door repairs.



We also are in the business of mold design
and own the rights to the design for an auto traction aid mold.



Currently the majority of our products sold
are to FedEx (Federal Express) and UPS (United Postal Service) for use with their trucking fleets. Our products do not have patent
protection nor do we have any trademarks or copyrights on our products.





3

BUSINESS



DESCRIPTION OF BUSINESS

Company Overview



Autovative Products, Inc. is a distributor
of automotive parts. We have developed and produced two products for both automobile and fleet uses. One product is the Portable
Tow Truck, a traction aid which has been successful in helping drivers get their vehicles unstuck from snow, ice, mud and sand.
The unit price for the Portable Tow Truck varies and sells in the $20-$30 range. The other product is the Overhead Door Saver,
a heavy-duty spring device for use in fleets of trucks with overhead doors. It cushions the shock of constant door openings, and
greatly reduces overhead door repairs. The price for the Overhead Door Saver is in the $30 range.



We were incorporated in Nevada on December
8, 2004. We have contracted for the manufacturing of both products listed above with OTW Enterprises LLC, located in Maryville,
Tennessee. The first product, the Portable Tow Truck, has been marketed exclusively by us to the large fleet market for
the past seven years, and has had continual sales to UPS (United Postal Service), FedEx (Federal Express) and others. The Overhead
Door Saver has been successfully tested by UPS on some of its vehicles. At this time the Company awaits a contract with UPS,
as they are considering installing it on all their vehicles with overhead doors. At this time we do not know with certainty whether
they will or will not enter into a contractual arrangement with the Company. We intend to expand our marketing of the Portable
Tow Truck to retail outlets worldwide, and expand the marketing of the Overhead Door Saver to companies with large truck
fleets with overhead doors.



All products sold by the Company are drop shipped by the manufacturer
in Maryville, TN to the customer.



Business Strategy



To date we have only attempted to sell our
products to trucking fleets such as FedEx and UPS. We believe that with the past sales of our products to two large trucking fleets
such as FedEx and UPS we should have an advantage to selling to additional trucking fleets as well as to the retail markets. However
there is no assurance that will happen.



We intend to enter into alliances with other
companies with innovative automobile products, especially focusing on products adapted to future trends in the automotive industry.
Additionally, we intend to enter into alliances with companies that have domestic and international marketing and distribution
outlets. We believe when this is successfully completed, it will provide profitability and self-sustaining growth. We plan to do
this by:



- Establishing manufacturing alliances with manufacturers, both domestically
and abroad, to mass produce our products.



Finding a manufacturer that can manufacture
larger volumes at cheaper prices while maintaining quality control should increase our profit margins. We believe that in order
to accomplish this will require a combination of larger orders and additional capital, neither of which are at our disposal currently.

In our opinion we would require orders
of at least 10,000 units annually of the Portable Tow Truck to have the units manufactured at a different manufacturing plant other
than the manufacturing facility we are currently using. Mold costs alone are estimated by management to be $50,000-75,000. In addition
we believe would have to order a minimum of 5,000 units per order to be cost effective. We believe the cost per unit savings by
changing manufacturing plants could be as much as 30% over the current cost paid per unit for the Portable Tow Truck units. Total
cost to make the manufacturing change could be as high as $125,000 (inclusive of the molds and the 5,000 unit minimum order).

4



The Company would require additional
sales and capital in order to accomplish this projection. There are no plans in place currently to raise additional capital without
which we would be unable to consider changing manufacturers.



The Overhead Door Saver, in the opinion
of management, would require orders of at least 5,000 units annually to be cost effective to have the units manufactured at a different
manufacturing plant other than the manufacturing facility we are currently using. We believe the cost per unit savings by changing
manufacturing plants could be as much as 20% over the current cost paid per unit for the Overhead Door Saver units. Total cost
to make the manufacturing change could be as high as $115,000 (inclusive of the molds and the 5,000 unit minimum order). The Company
would require additional sales and capital in order to accomplish this projection. There are no plans in place currently to raise
additional capital without which we would be unable to consider changing manufacturers.



- Developing a marketing and sales force to successfully market and sell
our products both domestically and globally.



We believe that if we become financially
able to hire a sales force that our sales would increase; although there is no assurance that would happen. We recognize that to
hire a sales force will take additional capital which we have estimated to be $3,000 per month.



We have recently hired sales people
on a commission only basis in Southern California, Idaho and Arizona to sell both the Portable Tow Truck units and the Overhead
Door Saver units to commercial trucking fleets like the trucks used by UPS and FEDEX. Currently all sales people are not contracted
by the Company nor are employees of the Company. The Company has no employees with the exception of its President, David Funderburk.
When a sale is made and revenue is received from the customer, commissions are paid to the person responsible for the sale.



We have projected to add one (1) sales
person at some point in the fiscal year 2012 on a full time basis at a salary plus commission’s basis of $3,000 each per
month, equating to a total of $36,000 annually. However this will require additional capital, which based on our current revenue
stream, would have to come from raising additional capital. At this time there is no definitive plan in place to raise additional
capital without which we would be unable to hire a full time sales person.



We anticipate that the full time sales
person would generate revenues through sales of the Overhead Door Saver and the Portable Tow Truck units to trucking fleet markets.
There is no assurance that we will be able to hire a sales person in the timeframe we have projected (sometime in 2012), or that
we might ever be in a financial position to hire a full time sales person and there is no assurance once hired that person would
make any sales.



- Establishing a retail oriented website oriented toward both trucking
fleet sales and retail sales of the Portable Tow Truck.



We plan to change our website, www.autovativeproducts.com,
in the second quarter of 2012 to orient it towards both the trucking fleet market and the retail market. The retail market orientation
would focus on individual units sold to car, truck, SUV, and off-road enthusiasts. We believe that the cost of developing a merchant
web-site capable of taking credit cards on-line would cost anywhere from $1,000 to $5,000 annually. We are aware that there could
be a conflict with our retail sales vs. the retail sales made by the manufacturer’s website, www.theportabletowtruck.com.
Currently any sales made through the manufacturer’s website are the manufacturer’s. Any sales whether retail, wholesale
or fleet sales made by us are our sales.



5



The trucking fleet part of the web-site
would be oriented towards explaining the Portable Tow Truck units and the Overhead Door saver units through textual context as
well as photos and videos of the use of the products.





- Establishing marketing alliances with companies with worldwide marketing
outlets.



We are currently seeking marketing
alliances. At this time we have none in place. We anticipate that a full time sales representative would increase sales in the
future.



We anticipate that a full time sales
person would generate revenues through sales of the Portable Tow Truck units to the (1) traditional, (2) retail and (3) OES
channels. Traditional channels would include brand name distributors, retail channel would include brand
name auto retail merchants. and the OES channel would consist primarily of vehicle manufacturers’ service departments at
new vehicle dealerships. There is no assurance that we will be able to hire a sales person in the timeframe we have projected
(sometime in 2012) at a cost of $3,000 a month, or that we might ever be in a financial position to hire a full time sales person
and there is no assurance once hired that person would make any sales through the above mentioned channels.





- Establishing distribution outlets globally through alliances with companies
with those locations established, including capability to establish more outlets.



We are currently seeking larger distribution
outlets that cater to trucking fleets, at this time we have none in place.



We project establishing such distribution
outlets would be accomplished through the hiring of additional sales staff as outlined in the paragraph above entitled “Developing
a marketing and sales force to successfully market and sell our products both domestically and globally”. We recognize that
to hire a sales force will take additional capital which we have estimated as previously noted to be at least $3,000 per month.



We have projected to add one (1) sales
person at some point in the fiscal year 2012 on a full time basis at a salary plus commission’s basis of $3,000 each per
month, equating to a total of $36,000 annually. However this will require additional capital, which based on our current revenue
stream, would have to come from raising additional capital. At this time there is no definitive plan in place to raise additional
capital without which we would be unable to hire a full time sales person.



We anticipate that the full time sales
person would not only generate revenues through sales of the Overhead Door Saver and the Portable Tow Truck units to trucking fleet
markets; but also by establishing distribution outlets globally through alliances with companies with those locations established,
including capability to establish more outlets. There is no assurance that we will be able to hire a sales person in the timeframe
we have projected (sometime in 2012), or that we might ever be in a financial position to hire a full time sales person and there
is no assurance once hired that person would make any sales or establish any additional distribution outlets.





- Continuing to test and improve our products, including locating additional
testing facilities.



UPS has been testing our Overhead Door
Saver for the last year. We believe that if we can establish other trucking fleets that would test the unit we might increase our
revenues. We are currently seeking additional trucking lines for testing purposes.



6



- Adding new product lines.



Currently we are focused on selling
our existing products. However it is our goal to add additional products that we might be able to sell to our existing customers
and subsequently expand our markets. We are currently undercapitalized to add new products at this time and there is no assurance
that we will be able to add products in the future, nor do we have any specific products in mind currently to add to our existing
product line. There is no timeline for seeking new products because the variables in the market, the ability to locate funds, the
need to develop a strong and consistent distribution network and public acceptance, just to name a few, are too many and diffuse
to reasonably establish a timeline



Although this strategy is our plan for future
growth, at this date we have no definitive arrangement with any other manufacturers for any other product lines. Nor do we have
any other marketing alliances in place, nor do we have the capital available to fund any of the above mentioned plans. All of these
steps will require additional capital.



Based on the assumption that we will be able
to raise additional capital we have projected that we would need a minimum of $41,000 to reach the goals of our Business Strategy
and an optimum of $166,000. To accomplish these goals the Company will need to raise additional capital. At this time there is
no plan in place to raise additional capital nor is their any assurance that we will be able to raise additional capital.



Industry Overview



According to JD Power, there were
a total of one billion light, medium and heavy duty vehicles registered worldwide in 2009. Approximately 259 million, or 25%,
of these vehicles were registered in the United States. According to the AAIA, the overall size of the U.S. aftermarket was approximately
$274 billion in 2009.

In general, aftermarket industry participants
can be categorized into three major groups: (1) manufacturers of parts, (2) distributors of replacement parts (without
manufacturing capabilities) and (3) installers, both professional and DIY customers. Distributors purchase products from manufacturers
and sell them to wholesale or retail operations, which in turn sell them to installers.

The distribution business is comprised
of the (1) traditional, (2) retail and (3) OES channels. Typically, professional installers purchase their products
through the traditional channel, and DIY customers purchase products through the retail channel. The
traditional channel includes well-known distributors of auto related parts. Through a network of distribution centers, these distributors
sell primarily to owned or affiliated stores, which in turn supply professional installers. The retail channel includes well known
retail merchants of auto related parts. The OES channel consists primarily of vehicle manufacturers’ service departments
at new vehicle dealerships.



There are numerous tire traction aid devices
on the market, most of which are designed to go around the tires and be used continuously while driving in weak traction areas
such as snow, ice, mud and sand. These types of devices are designed to prevent a vehicle from getting stuck, and are not designed
to get a vehicle unstuck. There are some traction mat devices similar to our Portable Tow Truck, but to our knowledge none
that have our cleat design. The major sales of these devices occur during the winter and rainy seasons, with fewer sales during
the dry months.



To our knowledge there are no similar devices
to our Overhead Door Saver currently on the market. Some fleet owners have attempted to place a door stop on the overhead
door track in the hopes of reducing door repairs, but these have proven to be of little effect. We believe that the Overhead
Door Saver would reduce overhead door repairs.



Currently we are selling the Portable Tow Truck
directly to two large fleet lines, UPS and FEDEX. Our goal is to sell through means mentioned above: (1) traditional, (2) retail
and (3) OES channels; in addition to the sales we are currently making. We recognize that we will need to raise additional
capital to accomplish that goal. As of now we have no plan in place for raising additional capital.



7



Our Products and Technology



Portable Tow Truck



The Portable Tow Truck was developed and is
owned by OTW Enterprises LLC. We have contracted with OTW Enterprises LLC for the marketing and distribution rights (See “Exhibit
10.1”). The Portable Tow Truck is made of rigid polypropylene. Each section (there are two sections, one for each
rear tire) is 8 inches wide and 36 inches long, and weighs 2.5 pounds. They have two holes on the top portion to provide attachment
to the vehicle, and are designed for easily handling and consume very little trunk space. They have been tested to perform at 40
degrees below zero, and are designed to last for a number of years, depending on how much they are used.



We have continued to have positive response
from both FedEx and UPS regarding the Portable Tow Truck. We have no ongoing contract for the sale of the product to any Company,
inclusive of FedEx and UPS yet both Companies combined make up 98% of our sales OF The Portable Tow Truck as they continue to return
to purchase the Portable Tow Truck.



We believe that once we implement our business
strategy as defined above we will be able to sell the product to additional large trucking fleets as well as automotive parts stores,
and the larger retail outlets such as Wal-Mart, and Target. At this time we do not know how successful we might be at selling to
other large trucking fleets or the retail markets.



Overhead Door Saver



The Overhead Door Saverwas developed
and is owned by OTW Enterprises LLC. We have contracted with OTW Enterprises LLC for the marketing and distribution rights (See
“Exhibit 10.1”).The Overhead Door Saver is manufactured from various steel parts. The mounting piece (which
is bolted to the track of the overhead door) is 3” steel flat bar which has three holes punched in it, and then is bent into
a U shape. The rod which goes through the U support is made from hot-rolled 1⁄2” steel and has a 2”X2 1⁄2”
flat steel piece welded on one end. A 10” long engineered steel spring is placed over the rod and then inserted through the
holes on the U support. A 2” long engineered steel spring is placed on the back end of the rod, with a bolt behind it welded
to the rod. The assembled unit is then painted and baked (plated) to prevent rust and to assure a long-lasting product. Left-hand
and right-hand units are produced, and both units are then bolted to the overhead door track, one on each side.



Competition



Portable Tow Truck



There are other devices on the market designed
to either assist drivers to prevent their vehicles from getting stuck in snow, ice, mud or sand, or to assist in extracting the
vehicles when they get stuck. The Portable Tow Truck is designed to assist in the latter category. The devices designed
to prevent vehicles from getting stuck must be applied around the tires prior to traveling in weak traction areas. Devices designed
to extract vehicles when stuck are not put around the tires, but instead are placed on the ground directly in front of the rear
(driving) tires and pushed down against the tires. This is the category of traction-aid product in which we would be in competition,
and not the former category.

Although we have a contract for the exclusive
rights for sales of the Portable Tow Truck and the Overhead Door Saver, there currently is another Company with the website name
www.theportabletowtruck.com that sells the Portable Tow Truck on a retail only basis. The Company is owned by the manufacturer
of the Portable Tow Truck units that we currently sell for commercial use. They are not affiliated with our company and sell the
Portable Tow Truck strictly on a retail basis though their Company website. A verbal agreement was reached between us and the Manufacturer
of the products in 2007 whereby the Manufacturer could make retail sales but only through their web site www.theportabletowtruck.com.
This agreement could affect our ability to penetrate the retail markets and it could confuse retail buyers that we may generate
through our web site or any other means. This could affect our ability to generate revenues through the retail marketplace

8



Overhead Door Saver



It is management’s belief that the Overhead
Door Saver would reduce repairs to overhead doors in trucking fleets. Management is unaware of a similar device on the market designed
to reduce the repairs on overhead doors.



Competitive Advantages



The Portable Tow Truck has several competitive
advantages over other similar traction-aid devices on the market. Some of the devices designed to extract stuck vehicles are flat
and some have ridges to assist with traction. To our knowledge the Portable Tow Truck is the only traction-aid product on
the market with many small sharp cleats on the top and bottom that both grab the tire and also dig into and hold on to the ground
surface. This is a major advantage in providing a firm grip to the tire as well as the ground surface. The front cleats face the
opposite direction, which further aids on the initial connection to the tire. Also, in the opinion of management, the Portable
Tow Truck is the only traction-aid product on the market with small holes in front to enable it to be connected to the vehicle
so it can be dragged to an area that is safe to stop.



Customers



Portable Tow Truck



Currently, and continuously for the past seven
years, we have had sales of the Portable Tow Truck to UPS, FedEx and other fleet owners. These sales have averaged over
5,000 units per year, and those sales are expected to continue. We plan to mass market our product to retail and wholesale outlets
throughout the U.S. and Canada, as well as globally. With that we hope to have customers worldwide.



Because we are considered a small vendor to
FedEx, our sales to the FedEx trucking fleet are made through Johnson Industries, Inc. in Norcross, Georgia. Sales to UPS are made
directly to UPS.



Overhead Door Saver



Our Overhead Door Saver has been successfully
tested at UPS centers for a number of years, and has proven to reduce overhead door repairs by as much as 75%. Negotiations are
underway to have the Overhead Door Saver installed on their entire fleet of trucks with overhead doors. Once that sale is
completed, we plan to begin an intensive marketing and sales campaign to other fleet owners with trucks with overhead doors in
the U.S., Canada and countries globally. However at this time we do not have a contract with any entity for the sale of our Overhead
Door Saverand we do not know whether the Overhead Door Saver will be successfully sold to UPS or other trucking fleets. To
date we have sold approximately 100 units of the Overhead Door Saver, primarily for testing purposes.



Intellectual Property



We do not have patents on either the Portable
Tow Truck or the Overhead Door Saver, these products are owned by OTW. They have applied for patents and have been denied patents
for both products.



We do own intellectual property consisting
of mold design for production of an automotive traction device which we have not applied for a patent for. This mold design has
been fully amortized as described in Note-2 to the financial statements.



Government Regulations



To our knowledge there are no current government
regulations concerning or affecting either of our products.

9



Research and Development



Portable Tow Truck



Our research and development activities have
been in the creation and testing of various materials to use in the molds, as well as development of the molds themselves. Live
tests we conducted using both cars and trucks in snow, ice, mud and sand conditions, and modifications to the materials and to
the mold design were made. After numerous tests, the current product emerged.



If our markets expand we intend to search for
a manufacturer that will be more cost effective whether it is on or offshore.



Automobile Traction Mold



We do own a mold design that was purchased
in 2005 for $70,000 which was specifically for the automobile industry. The mold design was fully amortized in 2011; however we
plan to be able to produce a mold from the design and begin production of automobile traction units in 2012. Further information
to this design is located in Note 2 to the financials statements.



Overhead Door Saver



Our research and development activities with
this product began by creating a design that could be applied to the rails of overhead doors, without causing any conflicts with
the use of the doors, or with the use of the cargo space. We then tested various sizes of steel materials and configurations, and
finally tested a number of steel spring sizes. After being unsuccessful in procuring ready-made springs that would perform properly,
we had special steel springs engineered to meet our specifications. Those springs were tested on various trucks, and have performed
perfectly since our first tests almost ten years ago. None of our Overhead Door Savers that have been in use of the UPS
trucks have broken or malfunctioned in that time period.



EMPLOYEES



Our President and Chief Executive Officer,
David Funderburk, has worked with the company on a commission only basis, based on sales made. We have two sales people working
with the Company who are not contracted by the Company nor are they employed by the Company. They are paid a commission only based
on revenues received from sales made by them. We plan to hire additional employees and sales force on an as needed basis and as
the Company’s growth expands in the areas of sales, administration and product assembly. As we further develop and market
our products, we will need to hire additional employees.



RISKS RELATING TO OUR BUSINESS



RISK FACTORS



YOU SHOULD CAREFULLY CONSIDER THE POSSIBILITY
THAT YOUR ENTIRE INVESTMENT MAY BE LOST. AS SUCH, YOU ARE ENCOURAGED TO EVALUATE THE FOLLOWING RISK FACTORS AND ALL OTHER INFORMATION
CONTAINED IN THIS PROSPECTUS BEFORE PURCHASING OUR COMMON STOCK. OUR COMMON STOCK INVOLVES A HIGH DEGREE OF RISK. ANY OF THE FOLLOWING
RISKS COULD ADVERSELY AFFECT OUR BUSINESS, FINANCIAL CONDITION AND RESULTS OF OPERATIONS, AND COULD RESULT IN COMPLETE LOSS OF
YOUR INVESTMENT.



WE HAVE A LIMITED OPERATING HISTORY THAT
YOU CAN USE TO EVALUATE US, AND THE LIKELIHOOD OF OUR SUCCESS MUST BE CONSIDERED IN LIGHT OF THE PROBLEMS, EXPENSES, DIFFICULTIES,
COMPLICATIONS AND DELAYS FREQUENTLY

ENCOUNTERED BY A SMALL DEVELOPING COMPANY.



10



We were incorporated in Nevada on December
8, 2004. We have limited financial resources and only limited revenues to date. The likelihood of our success must be considered
in light of the problems, expenses, difficulties, complications and delays frequently encountered by a small developing company
starting a new business enterprise and the highly competitive environment in which we will operate. Since we have a limited operating
history, we cannot assure you that our business will be profitable or that we will ever generate sufficient revenues to fully meet
our expenses and totally support our anticipated activities.



All of our capital and assets have been
provided by or acquired from our principal shareholders and third parties and through a Private Placement of the shares being registered
as well as from sales of our Portable Tow Truck Product. We cannot assure you, however, that we will be able to sustain the business
for the long term nor that we may not need to obtain additional capital in the future. We can also not assure you that we will
be able to obtain any required financing on a timely basis, or if obtainable, that the terms will not materially dilute the equity
of our current stockholders. If we are unable to obtain financing on a timely basis, we may have to significantly or entirely curtail
our business objectives, which could result in our having to discontinue some of our operations and plans.



OUR AUDTIOR’S REPORT CONTAINS AN EXPLANATORY STATEMENT
AS TO OUR ABILITY TO CONTINUE AS A GOING CONCERN.



The Company has had losses since its inception. There is no assurance
that we will become profitable in the future.



Our auditor has included the following paragraph in their Auditor’s
report (page F1-2)



“The Company has not generated significant
revenues or profits to date. This factor, among others, raises substantial doubt about its ability to continue as a going concern.
The Company’s continuation as a going concern depends upon its ability to generate sufficient cash flow to conduct its operations
and its ability to obtain additional sources of capital and financing. The accompanying financial statements do not include any
adjustments that might result from the outcome of this uncertainty.”



WE DEPEND HIGHLY ON OUR CURRENT PRESIDENT
WHO HAS LIMITED EXPERIENCE IN RUNNING A PUBLIC COMPANY AND NO FORMAL EMPLOYMENT AGREEMENT.



We depend highly on David Funderburk, our President,
Treasurer, and Director, who may be difficult to replace. David Funderburk who is also the Chief Executive Officer of Autovative
Products, at this point, only devotes approximately 40% of his time per week to our business, has seven years of industry experience
and has not previously headed a public Company. Our plan of operations is dependent upon the continuing support and business expertise
of Mr. Funderburk.



OUR SOLE EMPLOYEE IS OUR SOLE DIRECTOR; AS SUCH HE WILL DETERMINE
HIS COMMISSION, SALARY AND PERQUISITES.



Mr. Funderburk is the Company’s President
and sole director and sole employee. He has in the past and will continue to determine his commission, salary and perquisites.
Mr. Funderburk has received commissions averaging approximately 15% of sales for the three most recently completed fiscal years.



A LARGE PORTION OF OUR SALES ARE MADE BY
INDIVIDUALS WHO ARE NOT EMPLOYEES AND ARE NOT CONTRACTED BY THE COMPANY.



Besides the commissions paid to Mr. Funderburk,
we have engaged the services of two (2) additional sale persons who are paid commissions on sales they make. Neither individual
is contracted by the Company nor are they employed by the Company. These sales people are paid a set commission depending on the
entity sales are made to. Should the Company lose either of these sales people it would impact the sales revenues generated by
the Company.

11



LOSS OF OUR CEO COULD ADVERSLY AFFECT OUR
BUSINESS



Loss of Mr. Funderburk could slow the growth
of our business, or it may cease to operate at all, which may result in the total loss of investor’s investments. Mr. Funderburk
is not, presently, receiving a salary from the Company and it is unknown, at this time, if or when the Company may be able to compensate
Mr. Funderburk for his management services. The company does not anticipate Mr. Funderburk receiving a salary in the foreseeable
future. Mr. Funderburk does receive commissions from sales which have over the last three fiscal years averaged approximately 15%
of our sales revenue.



OUR MANAGEMENT HAS LIMITED EXPERIENCE IN
RUNNING A PUBLIC COMPANY



Mr. Funderburk has no experience in running
a public company. He is vaguely familiar with the reporting requirements of the Securities and Exchange Commission. Mr. Funderburk
will rely on the expertise of outside counsel and consultants to insure proper filing and the meeting of deadlines.



THERE ARE INCREASED COSTS AND REGULATIONS
ASSOCIATED WITH OPERATING A PUBLIC COMPANY AND WITH ONLY ONE OFFICER AND DIRECTOR WE WILL HAVE LIMITED INTERNAL ACCOUNTING CONTROLS.



There are a number of expenses and costs associated
with operating a public Company including filing expenses, transfer agent, stock issuance and maintenance costs, accounting, legal
and auditing expenses, estimated to be approximately $15,000 annually that will materially increase the Company’s operating
expenses and make it more difficult for the Company’s businesses to produce operating profits. There is no assurance that
we can absorb the costs of being a public company. Our CEO has no prior experience managing a public company. With only one officer
and director there will be no internal oversight to the Company’s financial reporting, initially, except from the Company’s
outside auditors.



THERE IS NO ASSURANCE OF A PUBLIC MARKET OR THAT THE COMMON STOCK
WILL EVER TRADE ON A RECOGNIZED EXCHANGE. THEREFORE, YOU MAY BE UNABLE TO LIQUIDATE YOUR INVESTMENT IN OUR STOCK.



There is no established public trading market
for our common stock. Our shares are not and have not been listed or quoted on any exchange or quotation system. There can be no
assurance that a market maker will agree to file the necessary documents with FINRA, which operates the OTC Electronic Bulletin
Board, nor can there be any assurance that such an application for quotation will be approved or that a regular trading market
will develop or that if developed, will be sustained. In the absence of a trading market, an investor may be unable to liquidate
their investment.



SINCE A SINGLE STOCKHOLDER, UPON COMPLETION
OF THE OFFERING WILL BENEFICIALLY OWN THE SIGNIFICANT MAJORITY OF OUR OUTSTANDING COMMON SHARES, THAT SINGLE STOCKHOLDER WILL RETAIN
THE ABILITY TO POTENTIALLY CONTROL OUR MANAGEMENT AND THE OUTCOME OF CORPORATE ACTIONS REQUIRING STOCKHOLDER APPROVAL NOTWITHSTANDING
THE OVERALL OPPOSITION OF OUR OTHER STOCKHOLDERS. THIS CONCENTRATION OF OWNERSHIP COULD DISCOURAGE OR PREVENT A POTENTIAL TAKEOVER
OF OUR COMPANY THAT MIGHT NEGATIVELY IMPACT THE VALUE OF YOUR COMMON SHARES.



David Funderburk owns approximately 84% of
our outstanding common shares and will continue to do so after the filing of this Registration Statement. As a consequence of his
stock ownership position, Mr. Funderburk will retain the ability to elect a majority of our board of directors, and thereby control
our management. David Funderburk also has the ability to control the outcome of corporate actions requiring stockholder approval,
including mergers and other changes of corporate control, any private transactions, and other extraordinary transactions. The concentration
of ownership by David Funderburk could discourage investments in our company, or prevent a potential takeover of our company which
will have a negative impact on the value of our securities.

12



BECAUSE OF COMPETITIVE PRESSURES FROM COMPETITORS
WITH MORE RESOURCES, AUTOVATIVE PRODUCTS MAY FAIL TO IMPLEMENT ITS BUSINESS MODEL PROFITABLY.



The automotive specialty product business is
highly fragmented and extremely competitive. The market for customers is intensely competitive and such competition is expected
to continue to increase (see “Competition”). We believe that our ability to compete depends upon many factors within
and beyond our control, including the timing and market acceptance of new solutions and enhancements to existing businesses developed
by us, our competitors, and their advisors.



WE ARE DEPENDENT ON THE POPULARITY OF PRODUCTS.



Our ability to generate revenue and be successful
in implementing our business plan is dependent on our ability to develop, produce, acquire and distribute products that are popular
with audiences and sold via distribution channels that are efficient and cost effective. There is no assurance that we can accomplish
that goal. Further our major customers are FEDX and UPS, should we lose that customer base we would have lost our major revenue
source.



OUR CURRENT REVENUE DEPENDS SOLELY ON TWO MAJOR CUSTOMERS.



We currently sell
the Portable Tow Truck units to Federal Express (FEDEX) which equates to approximately 5% of sales and to United Postal Service
(UPS) which equates to approximately 95% of Portable Tow Truck Units sold. We have no ongoing contract with either entity.
Currently, should we lose these customers we would have no revenue and we would have no ability to continue as a going concern.



WE MAY BE UNABLE TO COMPETE WITH LARGER
OR MORE ESTABLISHED COMPANIES.



We face a large and growing number of competitors
in the automotive specialty product industry. Many of these competitors have substantially greater financial, technical and marketing
resources, larger customer bases, longer operating histories, greater name recognition, and more established relationships in the
industry than does the Company. As a result, certain of these competitors may be in better positions to compete with us for product
and audiences. We cannot be sure that we will be able to compete successfully with existing or new competitors.



WE MAY REQUIRE ADDITIONAL FINANCING IN ORDER
TO IMPLEMENT OUR BUSINESS PLAN. IN THE EVENT WE ARE UNABLE TO ACQUIRE ADDITIONAL FINANCING, WE MAY NOT BE ABLE TO IMPLEMENT OUR
BUSINESS PLAN RESULTING IN A LOSS OF REVENUES AND ULTIMATELY THE LOSS OF ANY SHAREHOLDER’S INVESTMENT.



Due to our limited operating history outside
of two customers, FedEx and UPS, we will have to use all our existing resources to expand our business and develop our distribution
channels.



Following this offering we may need to raise
additional funds to expand our operations. We may raise additional funds through private placements, registered offerings, debt
financing or other sources to maintain and expand our operations, although at this time there is no plan in effect to do so. Adequate
funds for this purpose on terms favorable to us may not be available, and if available, on terms significantly more adverse to
us than are manageable. Without new funding, we may be only partially successful or completely unsuccessful in implementing our
business plan, and our stockholders will lose part or all of their investment.



13



OUR PRODUCTS OR PROCESSES COULD GIVE RISE TO CLAIMS THAT OUR
PRODUCTS INFRINGE ON THE RIGHTS OF OTHERS.



We are potentially subject to claims and litigation
from third parties claiming that our products or processes infringe their patent or other proprietary rights. If any such actions
are successful, in addition to any potential liability for damages, we could be required to obtain a license in order to continue
to manufacture, use or sell the affected product or process. Litigation, which could result in substantial costs to us, may also
be necessary to enforce our proprietary rights and/or to determine the scope and validity of the proprietary rights of others.
Any intellectual property litigation would be costly and could divert the efforts and attention of our management and technical
personnel, which could have a material adverse effect on our business, financial condition and results of operations. We cannot
assure you that infringement claims will not be asserted in the future or that such assertions, if proven to be true, will not
prevent us from selling our products or materially and adversely affect our business, financial condition and results of operations.
If any such claims are asserted against us, we may seek to enter into a royalty or licensing arrangement. We cannot assure you
that a license will be available on commercially reasonable terms, or at all. Regarding our Overhead Door Saver; there is an existing
patent for the basic technology used in the Overhead Door Saver which precludes us from obtaining a patent for the Overhead Door
Saver. It is possible that a Company with greater resources could copy our design for the Overhead Door Saver which could potentially
affect any future revenues that might be generated from the Overhead Door Saver. It is also possible
that we could infringe on an existing patent for the basic technology which was used in the production of the Overhead Door Saver.



WE MAY BE SUBJECT TO CLAIMS OF TRADEMARK
INFRINGEMENT, WHICH MAY HARM OUR BUSINESS.



The Company currently has not filed any trademarks
or copyrights for its products. However we intend to file in the near future. We may be subject to legal proceedings alleging claims
of trademark infringement in the future. If we must re-brand, it may result in significant marketing expenses and additional management
time and resources, which may adversely affect our business.



Additionally, we cannot guarantee that our
trademarks will be completely protected. This could cause harm to our brand and ultimately, to us. We could also spend additional
time and resources fighting other entities that might infringe upon our trademarks.



We applied for a patent for the Overhead Door
Saver and our patent application was declined, which may allow competitors to copy our designs for both the Portable Tow Truck
and the Overhead Door Saver. Should a larger Company copy our designs, it is possible that they may be able to manufacture
and sell the like kind products at a substantially lower cost than us.



Although we have a contract for the exclusive
rights for sales of the Portable Tow Truck and the Overhead Door Saver, there currently is another Company with the website name
www.theportabletowtruck.com that sells the Portable Tow Truck on a retail only basis. The Company is owned by the manufacturer
of the Portable Tow Truck units that we currently sell for commercial use. They are not affiliated with our company and sell the
Portable Tow Truck strictly on a retail basis though their Company website. A verbal agreement was reached between us and the Manufacturer
of the products in 2007 whereby the Manufacturer could make retail sales but only through their web site. This agreement could
affect our ability to penetrate the retail markets and it could confuse retail buyers that we may generate through our web site.
This could affect our ability to generate revenues through the retail marketplace.



PATENT APPLICATION WAS DENIED



A patent was applied for by OTW regarding the
Overhead Door Saver which was denied due to the fact that there was an existing patent for the basic technology which was applied
for, although for a different use.



They (OTW) explored filing a patent for the
Portable Tow Truck but did not file a patent for the Portable Tow Truck.



As such it is entirely possible that a company
with greater resources could copy our designs of both the Overhead Door saver and the Portable Tow Truck and manufacture and sell
a similar product.



14



WE MAY BE SUBJECT TO LAWSUITS FROM CUSTOMERS
WHO ARE INJURED USING OUR PRODUCTS.



Although we have what we believe to be clear
instructions on how to use our products, it is possible that a customer may get injured form using one of our products and subsequently
file a lawsuit against the Company. If we are unable to settle such a lawsuit it could adversely affect our business and shareholders
investment in the Company. We have no liability insurance in place at this time.



WE MAY BE UNABLE TO SCALE OUR OPERATIONS
SUCCESSFULLY.



Our plan is to grow rapidly. Our growth will
place significant demands on our management and technology development, as well as our financial, administrative and other resources.
We cannot guarantee that any of the systems, procedures and controls we put in place will be adequate to support the commercialization
of our operations. Our operating results will depend substantially on the ability of our officers and key employees to manage changing
business conditions and to implement and improve our financial, administrative and other resources. If we are unable to respond
to and manage changing business conditions, or the scale of our products, services and operations, then the quality of our services,
our ability to retain key personnel and our business could be harmed.



MR. FUNDERBURK HAS NO EXPERIENCE IN THE
GROWTH AND EXPANSION OF A BUSINESS AND HE WILL BE RELIANT ON CONSULTANTS AND OTHERS WHO HAVE GREATER MANAGEMENT EXPERIENCE. THE
LACK OF EXPERIENCE IN ALL OF THE BUSINESSES WE ARE ENTERING COULD IMPACT OUR RETURN ON INVESTMENT, IF ANY.



As a result of our reliance on Mr. Funderburk
and his lack of experience in Company expansion\growth, our investors are at risk in losing their entire investment. Mr. Funderburk
intends to hire personnel in the future who will have the experience required to manage our company, when the Company is sufficiently
capitalized. Until such management is in place, we are reliant upon Mr. Funderburk to make the appropriate management decisions.



AS THERE IS NO PUBLIC MARKET FOR OUR COMMON
SHARES, THEY ARE AN ILLIQUID INVESTMENT AND INVESTORS MAY NOT BE ABLE TO SELL THEIR SHARES.



No market currently exists for our securities
and we cannot assure you that such a market will ever develop, or if developed, will be sustained.



Our common stock is not currently eligible
for trading on any stock exchange and there can be no assurance that our common stock will be listed on any stock exchange in the
future. We intend to apply for listing on the OTC Bulletin Board trading system pursuant to Rule 15c2-11 of the Securities Exchange
Act of 1934, but there can be no assurance we will obtain such a listing. The bulletin board tends to be highly illiquid, in part
because there is no national quotation system by which potential investors can track the market price of shares except through
information received or generated by a limited number of broker-dealers that make a market in particular stocks. There is a greater
chance of market volatility for securities that trade on the bulletin board as opposed to a national exchange or quotation system.
This volatility may be caused by a variety of factors, including: the lack of readily available price quotations; the absence of
consistent administrative supervision of “bid” and “ask” quotations; lower trading volume; and general
market conditions. If no market for our shares materializes, you may not be able to sell your shares or may have to sell your shares
at a significantly lower price.



15



IF OUR SHARES OF COMMON STOCK ARE ACTIVELY TRADED ON A PUBLIC
MARKET, THEY WILL IN ALL LIKELIHOOD BE PENNY STOCKS.



The Securities Enforcement and Penny Stock
Reform Act of 1990 requires additional disclosure relating to the market for penny stocks in connection with trades in any stock
defined as a penny stock. SEC regulations generally define a penny stock to be an equity security that has a market or exercise
price of less than $5.00 per share, subject to certain exceptions. Such exceptions include any equity security listed on NASDAQ
and any equity security issued by an issuer that has net tangible assets of at least $100,000, if that issuer has been in continuous
operation for three years. Unless an exception is available, the regulations require delivery, prior to any transaction involving
a penny stock, of a disclosure schedule explaining the penny stock market and the associated risks. The penny stock rules require
a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure
document that provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer
must also provide the customer with current bid and offer quotations for the penny stock, details of the compensation of the broker-dealer
and its salesperson in the transaction, and monthly account statements showing the market value of each penny stock held in the
customer’s account. The bid and offer quotations and broker-dealer and salesperson compensation information must be given
to the customer orally or in writing prior to effecting the transaction and must be given in writing before or with the customer’s
confirmation. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from
such rules; the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser
and receive the purchaser’s written agreement to the transaction. These disclosure requirements may have the effect of reducing
the level of trading activity in the secondary market for securities that become subject to the penny stock rules. Since our securities
are highly likely to be subject to the penny stock rules, should a public market ever develop, any market for our shares of common
stock may not be liquid.



BECAUSE OUR SECURITIES MAY BE SUBJECT TO
PENNY STOCK RULES, YOU MAY HAVE DIFFICULTY RESELLING YOUR SHARES.



Since our stock may be subject to penny stock
rules, you may have difficulty reselling your shares. Penny stocks are covered by section 15(g) of the Securities Exchange Act
of 1934 which imposes additional sales practice requirements on broker/dealers who sell the Company’s securities including
the delivery of a standardized disclosure document; disclosure and confirmation of quotation prices; disclosure of compensation
the broker/dealer receives; and, furnishing monthly account statements. For sales of our securities, the broker/dealer may be required
to make a special suitability determination and receive from its customer a written agreement prior to making a sale. The imposition
of the foregoing additional sales practices could adversely affect a shareholder’s ability to dispose of his stock.



THIS REGISRTATION STATEMENT CONTAINS FORWARD
LOOKING STATEMENTS WHICH ARE SPECULATIVE IN NATURE.



This registration statement contains forward-looking
statements. These statements relate to future events or our future financial performance. Forward looking statements are speculative
and uncertain and not based on historical facts. Because forward-looking statements involve risks and uncertainties, there are
important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking
statements, including those discussed under “Business Description” and “Corporate Background” Although
the Company believes that the expectations reflected in the forward-looking statements are reasonable, future results, levels of
activity, performance, or achievements cannot be guaranteed. The reader is advised to consult any further disclosures made on related
subjects in our future SEC filings.



WE HAVE NOT PAID, AND DO NOT INTEND TO PAY,
CASH DIVIDENDS IN THE FORESEEABLE FUTURE.



We have not paid any cash dividends on our
common stock and do not intend to pay cash dividends in the foreseeable future. We intend to retain future earnings, if any, for
reinvestment in the development and expansion of our business. Dividend payments in the future may also be limited by other loan
agreements or covenants contained in other securities that we may issue. Any future determination to pay cash dividends will be
at the discretion of our board of directors and depend on our financial condition, results of operations, capital and legal requirements
and such other factors as our board of directors deems relevant.



16



ITEM 2. DESCRIPTION OF PROPERTY

CORPORATE INFORMATION



Office and Facilities



The Company currently utilizes space provided
by its Principal Executive Officer, at no charge to the Company.



Our executive offices are located at 502 N.
Santa Fe Avenue, Ste. D, Vista, CA 92083. Our telephone number at that address is 760-732-5868, and our facsimile number is 760-301-0005.
The manufacturing facilities are located in Maryville, TN, where we currently contract with independent laborers to produce, assemble
and package our products.



WEBSITE POSTING OF SEC FILINGS



Our annual reports on Form 10-K, quarterly
reports on Form 10-Q, current reports on Form 8-K and amendments to such reports are available, free of charge, on our
website and can be accessed on the SEC’s Edgar database. Further, a copy of this annual report on Form 10-K is located
at the SEC’s Public Reference Room at 100 F Street, NE, Washington, D.C. 20549. Information on the operation
of the Public Reference Room can be obtained by calling the SEC at 1-800-SEC-0330. The SEC maintains an internet site that contains
reports, proxy and information statements and other information regarding our filings at www.sec.gov.



Bankruptcy or Receivership or Similar Proceedings



None



ITEM 3. LEGAL PROCEEDINGS



Legal Proceedings



Neither the Company nor any of its officers,
directors or beneficial shareholders (greater than 10%) are involved in any litigation or legal proceedings involving the business
of the Company.



Further there isno pending or current litigation that the Company or its officers or directors are subject to.



ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.



There were no items submitted for a shareholder vote.



17



PART II

|ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER REPURCHASES OF EQUITY SECURITIES
|------- | --------------------------------------------------------------------------------------------------------------



Our common stock has not been listed
on the OTCBB and OTCQB or any other exchange as of December 31, 2011.



At Year end December 31,
2011 we had 8,585,977 shares of our common stock outstanding and the number of stockholders of
record of our common stock was 62.



DIVIDENDS



We have never declared or paid any cash dividends
on our common stock. We do not anticipate paying any cash dividends to stockholders in the foreseeable future. In addition, any
future determination to pay cash dividends will be at the discretion of our board of directors and will be dependent upon our financial
condition, results of operations, capital requirements, and such other factors as the board deem relevant.



RECENT SALES OF UNREGISTERED SECURITIES



There were no sales of unregistered securities in the year ended
December 31, 2011.



PURCHASES OF EQUITY SECURITIES BY THE REGISTRANT AND AFFILIATED
PURCHASERS



There were no purchases of our equity securities by us or any affiliated
purchasers during any month within the fourth quarter of the fiscal year covered by this Annual Report.



ITEM 6. SELECTED FINANCIAL DATA



Not applicable to a “smaller reporting company” as defined
in Item 10(f)(1) of SEC Regulation S-K.



18



ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS



Statements included in this Management's Discussion
and Analysis or Plan of Operation, and in future filings by us with the Securities and Exchange Commission, in our press releases
and in oral statements made with the approval of an authorized executive officer which are not historical or current facts are
"forward-looking statements." We wish to caution readers not to place undue reliance on any such forward-looking statements,
which speak only as of the date made. The following important factors, among others, in some cases have affected and in the future
could affect our actual results and could cause our actual financial performance to differ materially from that expressed in any
forward-looking statement: (i) the extremely competitive conditions that currently exist in the market for "blank check"
companies similar to us, and (ii) lack of resources to maintain our good standing status and requisite filings with the Securities
and Exchange Commission. The foregoing list should not be construed as exhaustive and we disclaim any obligation subsequently to
revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence
of anticipated or unanticipated events



GENERAL



We were incorporated in Nevada on December
8, 2004 and we have elected December 31 as our fiscal year end.



We were formed to develop businesses, assets
and opportunities, some acquired and contributed from third parties and our founding shareholders, in the trucking/automobile special
parts production and distribution industry and some related fields. We have been, initially, capitalized through the acquisition
of Assets from our founding shareholder, outside producers, cash flows from the distribution of products and the proceeds from
a Private Placement offering.



In 2010 we had gross profit from operations
of $51,405 and total operating expenses of $67,881. In 2011 we had gross profit from operations of $60,260 and total operating
expenses of $105,450. In 2011 we had sales revenues of $57,100 from the sale of mold design, the balance of sales revenues, $59,784
for the year were from the sale of the Portable Tow Truck units. It is the intention of the Company to continue to develop and
distribute its products, however, there is no assurance the Company will continue to generate Net Income over the long term.



As of December 31, 2011
the Company had $28,343 of cash on hand, Total Assets of $43,543and
Total Current Liabilities of 0. The Company believes that it has sufficient capital to operate over the next twelve (12) months.



Significant Accounting Policies and Estimates



Management’s Discussion and Analysis
of Financial Condition and Results of Operations discusses the Company’s consolidated financial statements which have been
prepared in accordance with accounting principals generally accepted in the United States of America. The preparation of these
financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management
bases its estimates and judgments on historical experiences and on various other factors that are believed to be reasonable under
the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities
that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or
conditions.



19



Revenue Recognition



Revenue consists of products sold, primarily
sales of the Portable Tow Truck. Autovative Products, Inc. serves a sales and marketing function for these products and does not
receive the orders. Rather, orders are sent directly from our customers to OTW Enterprises, Inc. (OTW). Items are drop-shipped
to our customers by OTW Enterprises, Inc., using our customers’ shipping service ( i.e. either UPS or FEDEX) at no charge
to the Company or to the customer. The Company invoices the customer when it is notified of shipment by OTW. At that point, commission
revenue is recognized.



Use of Estimates



The preparation of financial statements in
conformity with generally accepted accounting principles in the United States requires us to make estimates and assumptions that
affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates.



Results of Operations



For THE YEARS ENDED DECEMBER
31, 2010 AND 2011



In 2010 we had gross profit from operations
of $51,405 derived primarily from the distribution of the Portable Tow Truck units, and total operating expenses of $67,881. In
2011 we had gross profit from operations of $60,260 and total operating expenses of $105,450. In 2011 we had revenues of $57,100
from the sale of mold design, the balance of revenues, $59,784 for the year being from the sale of the Portable Tow Truck units.
Net Losses for 2010 were ($16,476) and for 2011 ($45,190).It is
the intention of the Company to continue to develop and distribute its products; however, there is no assurance the Company will
be able to generate Net Income over the long term.



Our sales revenues decreased from $118,909
in 2010 to $116,884 in 2011 adecrease of 2%. Our operating expenses
increased from $67,881 in 2010 to $105,450in 2011, primarily due
to the amortization of our intellectual property (an increase of approximately $46,500 over the previous year). Our advertising
and marketing expenses were $23,700 in 2011 as compared to $26,310 in 2010.



Liquidity and Capital Resources



As of December 31, 2011 the Company had cash
on hand of $28,343, total Current Assets of $42,472, total Assets of $43,543, total Current Liabilities of $0 and total Stockholder’s
Equity of $43,543. The Company’s cash was generated from revenue from its sales of its Portable Tow Truck units, and sales
of its mold design. The Company believes it has sufficient cash resources available to fund its primary operation for the next
twelve (12) months based on current cash.



As noted above in the Results of Operations,
our sales revenues at year end December 31, 2011 had decreased by 2% in the last year. Sales revenues for the year were attributed
to the sales of the Portable Tow Truck Units to FEDEX and UPS for their trucking fleets and sales of mold design. It is likely
that sales revenues will continue to either remain at the same level at fiscal year end 2012 or decrease, due to the saturation
level of sales of the units within the two trucking fleets; unless the Company increases sales revenues through additional markets
outside of the sales of the Portable Tow Truck units to only FEDEX and UPS and/or the Company is able to implement its business
plan.



In 2010 and 2011 we spent more money on advertising
and marketing as noted above; which we believe will result in an increase in sales in 2012 and future years. We are currently attempting
to attract additional trucking fleets to use our Portable Tow Truck units as well as our Overhead Door Saver.



20



We believe that in order for the Company’s
sales revenues to increase it is paramount that the Company engage in sales agreements with additional trucking fleets for both
its Portable Tow Truck units and its Overhead Door Saver units. We have engaged additional sales people on a commission only basis
in Idaho, Southern California and Arizona to direct sales towards larger trucking fleets like FEDEX and UPS. We believe that 2012
should show positive results due to the increased sales effort. However there is no assurance that any additional sales will be
made. Further there is no assurance that our sales revenues will not continue to decrease over the revenues of fiscal year end
2011.



The Company has no, current, off balance sheet
arrangements and does not anticipate entering into any off balance sheet arrangements that are reasonably likely to have a current
or future effect on our financial condition. The Company has no agreements in place with its shareholders, officer and director
or with any third parties to fund operations beyond the end of the Company’s 2010-2011 fiscal years. The Company has not
negotiated nor has available to it any other third party sources of liquidity.



APPLICATION OF CRITICAL ACCOUNTING POLICIES



Our financial statements and accompanying notes
are prepared in accordance with generally accepted accounting principles in the United States. Preparing financial statements requires
management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These
estimates and assumptions are affected by management’s application of accounting policies. Critical accounting policies include
revenue recognition, impairment of marketing rights and accounting for legal contingencies.



We recognize revenue in accordance with Staff
Accounting Bulletin No. 114, “Revenue Recognition in Financial Statements.” Sales are recorded when products
are shipped to customers. Provisions for discounts and rebates to customers, estimated returns and allowances and other adjustments
are provided for in the same period the related sales are recorded.



We evaluate our long-lived assets for financial impairment on a
regular basis in accordance with ASU 2011-08 Goodwill and Other (Topic 350). In
September 2011, the FASB issued ASU 2011-08 Goodwill and Other (Topic 350) which amends the guidance on testing goodwill for impairment.
Under the revised guidance, entities testing goodwill for impairment have the option of performing a qualitative assessment before
calculating the fair value of the reporting unit (i.e., step 1 of the goodwill impairment test). If entities determine, on the
basis of qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount,
the two-step impairment test would be required. The ASU does not change how goodwill is calculated or assigned to reporting units,
nor does it revise the requirement to test goodwill annually for impairment. In addition, the ASU does not amend the requirement
to test goodwill for impairment between annual tests if events or circumstances warrant; however, it does revise the examples of
events and circumstances that an entity should consider. The guidance is effective for annual and interim goodwill impairment tests
performed for fiscal years beginning after December 15, 2011 (See "NOTE 2" for Financial Statements).



New Accounting Pronouncements



In June 2009, the FASB issued Accounting Standards
Update (“ASU”) 2009-01, Topic 105 – Generally Accepted Accounting Principles(“GAAP”) (“ASU
2009-01”), which superseded all accounting standards in U.S. GAAP, aside from those issued by the SEC.  The codification
does not change or alter existing GAAP.  ASU 2009-01 is effective for reporting periods ending after September 15, 2009.  We
adopted ASU 2009-01 for reporting in the fourth quarter of 2010.  Adoption of ASU 2009-01 did not have a material impact
on our Consolidated Financial Statements.



21



In May 2011, the FASB issued ASU 2011-04 Fair
Value Measurement (Topic 820). The ASU is the result of joint efforts by the FASB and International Accounting Standards Board
(IASB) to develop a single, converged fair value framework. While the ASU is largely consistent with existing fair value measurement
principles in U.S. GAAP, it expands existing disclosure requirements for fair value measurements and makes other amendments to
eliminate unnecessary wording differences between U.S. GAAP and IFRSs. The amendments are effective for annual and interim goodwill
impairment tests performed for fiscal years beginning after December 15, 2011. The impact of this standard has been taken into
account as noted in NOTES 2, 3 and 4 of the Company’s financial statements.



FASB issued ASC-855,
Subsequent Events(“ASU 2010-09”), to address subsequent events as they relate to the Company financial statements.
 A subsequent event is something happens after the balance sheet date but before the financial statements are issued. 
There are two types of subsequent events; (1) more evidence about events that existed (2) events that did not exist at the balance
sheet date.Adoption of ASC-855
did not have a material impact on our Financial Statements.



There were various other updates recently issued,
most of which represented technical corrections to the accounting literature of application to specific industries and are not
expected to have a material impact on the Company's consolidated financial position, results of operations or cash flows.





Forward-Looking Statements



This Annual Report includes “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Words such as “expects”,
“anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”,
“will”, and variations of such words and similar expressions are intended to identify such forward-looking statements.  These
statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult
to predict.  Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such
forward-looking statements.  Readers are cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date on which they are made.  We undertake no obligations to update publicly any forward-looking
statements, whether as a result of new information, future events or otherwise.  Important factors that could cause results
to differ materially from those in the forward-looking statements include (1) the timing and extent of changes in raw material
and component prices, (2) the effects of fluctuations in the commercial/industrial new construction market, (3) the timing and
extent of changes in interest rates, as well as other competitive factors during the year, and (4) general economic, market or
business conditions.



Our business is more fully described in Part I of this Annual Report.



ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.



Not applicable to a “smaller reporting
company” as defined in Item 10(f)(1) of SEC Regulation S-K.



22





ITEM 8. FINANCIAL STATEMENTS.





SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

AUDITED FINANCIAL STATEMENTS AND SCHEDULES

December 31, 2010 and December 31, 2011

AUTOVATIVE PRODUCTS, INC



Index to Financial Statements



|                                                        | Page    
|------------------------------------------------------- | --------
|Report of Independent Registered Public Accounting Firm | F-2- F-3
|Balance Sheets                                          | F-4     
|Statements of Operations                                | F-5     
|Statement of Stockholders’ Equity                       | F-6     
|Statements of Cash Flows                                | F-7     
|Notes to Financial Statements                           | F8-F13  



F-1







REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



The Board of Directors and Stockholders of

Autovative Products, Inc.

Vista, CA



We have audited the accompanying balance
sheet of Autovative Products, Inc. as of December 31, 2011, and the related statements of income, retained earnings, and cash
flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility
is to express an opinion on these financial statements based on our audit. The financial statements of Autovative Products, Inc.
as of December 31, 2010, were audited by other auditors. Those auditors expressed an unqualified opinion on those financial statements
in their report dated March 31, 2011.

We conducted our audit in accordance with
standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is
not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included
consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over
financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement presentation of the financial statements. We believe that
our audit provides a reasonable basis for our opinion.



In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Autovative Products, Inc. as of December 31, 2011, and the result
of its operations and its cash flows for periods then ended, in conformity with accounting principles generally accepted in the
United States of America.



As discussed in Note 4 to the financial statements,
the 2010 financial statements have been restated to correct a misstatement.



The accompanying financial statements have
been prepared assuming that Autovative Products, Inc. will continue as a going concern. As discussed in Note 1 to the financial
statements, Autovative Products, Inc. suffered recurring losses from operations which raises substantial doubt about its ability
to continue as a going concern. Management's plans regarding those matters also are described in Note 1. The financial statements
do not include any adjustments that might result from the outcome of this uncertainty.



Hamilton, PC



/s/ Hamilton, PC

Denver, Colorado

March 22, 2012



F-2







Report of Independent Registered Public
Accounting Firm



Board of Directors

Autovative Products, Inc.



We have audited the accompanying balance sheet
of Autovative Products, Inc. as of December 31, 2010, and the related statements of operations, changes in shareholders’
equity, and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management.
Our responsibility is to express an opinion on these financial statements based on our audits.



We conduct our audits in accordance with the
standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes
examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis for our opinion.



The Company has not generated significant
revenues or profits to date. This factor, among others, raises substantial doubt about its ability to continue as a going concern.
The Company’s continuation as a going concern depends upon its ability to generate sufficient cash flow to conduct its operations
and its ability to obtain additional sources of capital and financing. The accompanying financial statements do not include any
adjustments that might result from the outcome of this uncertainty.



In our opinion, the financial statements referred
to above present fairly, in all material respects, the financial position of the Company at December 31, 2010 and the results
of its operations, changes in shareholders’ equity, and its cash flows for year then ended, in conformity with U.S. generally
accepted accounting standards.



Malcolm L. Pollard, Inc.

Erie, Pennsylvania



March 31, 2011 except for the matter discussed in Note 4 to the financial statements for the Years Ended
December 31, 2010 and December 31, 2011 which is April 10, 2012



F-3









AUTOVATIVE PRODUCTS, INC

BALANCE SHEETS

As Of December 31, 2011 and 2010



|                                                                                                  |  |        |          |        |          |       
|------------------------------------------------------------------------------------------------- |  | ------ | -------- | ------ | -------- | ------
|                                                                                                  |  |        |          |        |          |       
|                                                                                                  |  |        |          | 2011   |          | 2010  
|                                                                                                  |  |        |          |        |          |       
|Assets                                                                                            |  |        |          |        |          |       
|                                                                                                  |  |        |          |        |          |       
|Current Assets                                                                                    |  |        |          |        |          |       
|Cash                                                                                              |  |        | $        | 28,343 | $        | 1,045 
|Accounts Receivable                                                                               |  |        | 14,129   |        | 31,186  
|Total Current Assets                                                                              |  |        | 42,472   |        | 32,231  
|                                                                                                  |  |        |          |        |         
|Fixed Assets                                                                                      |  |        |          |        |         
|Intellectual Property                                                                             |  |        | 70,000   |        | 70,000  
|Furniture & Computer Equip.                                                                       |  |        | 30,000   |        | 30,000  
|Accumulated Amortization &
        Depreciation                                                   |  |        | (98,929) |        | (43,498)
|Total Fixed Assets                                                                                |  |        | 1,071    |        | 56,502  
|                                                                                                  |  |        |          |        |         
|Total Assets                                                                                      |  | $      | 43,543   | $      | 88,733  
|                                                                                                  |  |        |          |        |         
|Liabilities And Equity                                                                            |  |        |          |        |         
|                                                                                                  |  |        |          |        |         
|Current Liabilities                                                                               |  |        |          |        |         
|Accrued income tax payable                                                                        |  |        | $        | -      | $        | -     
|Total Current Liabilities                                                                         |  |        |          | -      |          | -     
|                                                                                                  |  |        |          |        |          |       
|Total Liabilities                                                                                 |  |        | -        |        | -       
|                                                                                                  |  |        |          |        |         
|Stockholders Equity                                                                               |  |        |          |        |         
|                                                                                                  |  |        |          |        |          |       
|Common Stock $.001 Par Value 25,000,000 Shares Authorized 8,585,977 shares issued and outstanding |  |        | 8,586    |        | 8,586   
|                                                                                                  |  |        |          |        |          |       
|Paid in Capital                                                                                   |  |        |          | 24,555 |          | 24,555
|Retained Earnings                                                                                 |  |        |          | 10,402 |          | 55,592
|Total Stockholders’ Equity                                                                        |  | 43,543 |          | 88,733
|                                                                                                  |  |        |          |        |          |       
|Total Liabilities And                                                                             |  |        |          |        |         
|Stockholders’ Equity                                                                              |  | $      | 43,543   | $      | 88,733  
|                                                                                                  |  |        |          |        |          |       
|                                                                                                  |  |        |          |        |          |       

See accompanying summary of accounting policies
and notes to

financial statements

F-3





AUTOVATIVE PRODUCTS, INC

STATEMENTS OF OPERATIONS

For the Years Ended December 31, 2011 and
2010



|                                             |   |           | 2011    |           | 2010   
|-------------------------------------------- | - | --------- | ------- | --------- | -------
|Revenue                                      |   |           |         |          
|                                             |   |           |         |           |        
|Sales                                        |   | $         | 116,884 | $         | 118,909
|Cost of Goods Sold                           |   |           | 56,624  |           | 67,504 
|Gross Income                                 |   | 60,260    |         | 51,405   
|                                             |   |           |         |           |        
|Ordinary Income\Expenses                     |   |           |         |          
|Depreciation                                 |   | 4,681     |         | 4,000    
|Amortization                                 |   | 50,750    |         | 4,286    
|Commissions                                  |   | 17,652    |         | 27,220   
|Advertising and Marketing                    |   | 23,700    |         | 26,310   
|General & Administrative                     |   | 672       |         | 3,068    
|Professional Fees                            |   | 7,995     |         | 3,000    
|                                             |   |           |         |           |        
|Total Expenses                               |   | 105,450   |         | 67,881   
|                                             |   |           |         |           |        
|Net (Loss) Before Provision for Income Taxes |   | (45,190)  |         | (16,476) 
|                                             |   |           |         |           |        
|Provision for Income Taxes                   |   | -         |         | -        
|                                             |   |           |         |          
|Net (Loss)                                   | $ | (45,190)  | $       | (16,476) 
|                                             |   |           |         |          
|Net (Loss) Per Share                         | $ | -         | $       | (.01)    
|                                             |   |           |         |          
|Weighted Average Shares Outstanding          |   | 8,585,977 |         | 8,461,977
|                                             |   |           |         |           |        



See accompanying summary of accounting policies
and notes to

financial statements

F-4







AUTOVATIVE PRODUCTS, INC

STATEMENT OF CHANGES IN SHAREHOLDERS’
EQUITY

For the Years Ended December 31, 2010 and
2011



|                                                                     |  | Common Stock |   |        |   |                 |   |          | 
|-------------------------------------------------------------------- |  | ------------ | - | ------ | - | --------------- | - | -------- | 
|                                                                     |  | Number of    |   |        |   | Additional      |   | Retained | 
|                                                                     |  | Shares       |   | Amount |   | Paid in Capital |   | Earnings | 
|                                                                     |  |              |   |        |   |                 |   |          | 
|Balance, December 31, 2009                                           |  | 8,337,977    | $ | 8,338  | $ | -               | $ | 72,068   | 
|                                                                     |  |              |   |        |   |                 |   |          | 
|Issuance of common stock, private placement, July 2010               |  | 223,000      |   | 223    |   | 22,080          |   | -        | 
|                                                                     |  |              |   |        |   |                 |   |          | 
|Issuance of common stock for Advertising services, November 24, 2010 |  | 25,000       |   | 25     |   | 2,475           |   | -        | 
|                                                                     |  |              |   |        |   |                 |   |          | 
|Net loss for the year ended December 31, 2010                        |  | -            |   | -      |   | -               |   | (16,476) | 
|                                                                     |  |              |   |        |   |                 |   |          | 
|Balance, December 31, 2010                                           |  | 8,585,977    |   | 8,586  |   | 24,555          |   | 55,592   | 
|                                                                     |  |              |   |        |   |                 |   |          | 
|Net loss for the year ended December 31, 2011                        |  | -            |   | -      |   | -               |   | (45,190) | 
|                                                                     |  |              |   |        |   |                 |   |          | 
|Balance, December 31, 2011                                           |  | 8,585,977    | $ | 8,586  | $ | 24,555          | $ | 10,402   | 

See accompanying summary of accounting policies
and notes to financial statements

F-5







AUTOVATIVE PRODUCTS, INC

STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2011 and
2010



|                                                                                                   |   | 2011     |   | 2010    
|-------------------------------------------------------------------------------------------------- | - | -------- | - | --------
|Cash Flows from Operating Activities                                                               |   |          |   |         
|Net (Loss)                                                                                         | $ | (45,190) | $ | (16,476)
|                                                                                                   |   |          |   |         
|Adjustments to Reconcile Net Income (Loss) To Net Cash Provided by (Used In) Operating Activities: |   |          |   |         
|                                                                                                   |   |          |   |         
|Amortization of Long Lived Asset                                                                   |   | 50,750   |   | 4,286   
|Depreciation Property and Equipment                                                                |   | 4,681    |   | 4,000   
|Stock Issued for Services                                                                          |   | -        |   | 2,500   
|Changes In Accounts Receivable                                                                     |   | 17,057   |   | (31,186)
|                                                                                                   |   |          |   |         
|Net Cash Provided by (Used In) Operating Activities                                                |   | 27,298   |   | (36,876)
|                                                                                                   |   |          |   |         
|Cash Flows From Investing Activities                                                               |   |          |   |         
|                                                                                                   |   |          |   |         
|Net Cash Provided by (Used In) Investing Activities                                                |   | -        |   | -       
|                                                                                                   |   |          |   |         
|Cash Flows from Financing Activities                                                               |   |          |   |         
|Sale of Capital Stock                                                                              |   | -        |   | 22,303  
|                                                                                                   |   |          |   |         
|Net Cash Provided by (Used In) Financing Activities                                                |   | -        |   | 22,303  
|                                                                                                   |   |          |   |         
|Increase (decrease) in Cash                                                                        |   | 27,298   |   | (14,573)
|                                                                                                   |   |          |   |         
|Cash at Beginning of Year                                                                          |   | 1,045    |   | 15,618  
|                                                                                                   |   |          |   |         
|Cash at End of Year                                                                                | $ | 28,343   | $ | 1,045   



See accompanying summary of accounting policies
and notes to

financial statements

*For the Year End 2011 and 2010, there were no payments for interest
or taxes.



F-6





AUTOVATIVE PRODUCTS INC.

NOTES TO THE FINANCIAL STATEMENTS

For the Years Ended December 31, 2011 and
2010





NOTE 1 - SUMMARY OF ACCOUNTING POLICIES



A summary of the significant accounting policies applied in the
preparation of the accompanying financial statements follows.



BUSINESS AND BASIS OF PRESENTATION



Autovative Products Inc. ("Company"
or "Autovative Products") was formed on December 8, 2004 under the laws of the State of Nevada.



Autovative Products is a Specialty distribution
company of fleet truck products. Currently the Company has exclusive distribution rights with both Federal Express (FedEx) and
United Postal Service (UPS) for its Portable Tow Truck. The Company is currently in the process of marketing its Overhead
Door Saver to both FedEx and UPS.



LIQUIDITY



As shown in the accompanying financial statements,
the Company had a net loss of ($45,190) for the year ended December 31, 2011 and incurred a net loss of ($16,476) for the year
ended December 31, 2010. At December 31, 2011 the Company's current assets were $42,472 and the total assets were $43,453 and its
liabilities were $0. The Company’s assets exceeded its liabilities by $43,453.



ESTIMATES



The preparation of the financial statement
in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results could differ from those estimates.



REVENUE RECOGNITION



The Company recognizes revenue when earned
in accordance with SEC Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements".



The SEC staff released Staff Accounting Bulletin
(SAB) No. 101, Revenue Recognition. to make its interpretive guidance consistent with current accounting guidance, Also, SAB 101
incorporates portions of the Revenue Recognition in Financial Statements - Frequently Asked Questions and Answers document that
the SEC staff considered relevant and rescinds the remainder. The company's revenue recognition policies are consistent with this
guidance.



F-7



INCOME TAXES



We account for income taxes in accordance with
FASB ASC 740, Income Taxes which requires the recognition of deferred tax liabilities and assets for the expected future
tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities
and assets are determined based on the difference between financial statements and tax basis of assets and liabilities using enacted
tax rates in effect for the year in which the differences are expected to reverse. Temporary differences between taxable income
reported for financial reporting purposes and income tax purposes are insignificant.



PROPERTY AND EQUIPMENT



Property and equipment are stated at cost less
accumulated depreciation and amortization. Depreciation and amortization are computed using straight-line methods over the estimated
useful lives of the assets, principally three to five years, or the term of the lease, if shorter, for leasehold improvements.



IMPAIRMENT OF LONG-LIVED ASSETS



In September
2011, the FASB issued ASU 2011-08 Goodwill and Other (Topic 350) which amends the guidance on testing goodwill for impairment.
Under the revised guidance, entities testing goodwill for impairment have the option of performing a qualitative assessment before
calculating the fair value of the reporting unit (i.e., step 1 of the goodwill impairment test). If entities determine, on the
basis of qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount,
the two-step impairment test would be required. The ASU does not change how goodwill is calculated or assigned to reporting units,
nor does it revise the requirement to test goodwill annually for impairment. In addition, the ASU does not amend the requirement
to test goodwill for impairment between annual tests if events or circumstances warrant; however, it does revise the examples of
events and circumstances that an entity should consider. The guidance is effective for annual and interim goodwill impairment tests
performed for fiscal years beginning after December 15, 2011. The Statement requires that long-lived assets and certain
identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable. Events relating to recoverability may include significant unfavorable
changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended
period. The Company uses an estimate of undiscounted future net cash flows of the assets over the remaining useful lives in determining
whether the carrying value of the assets is recoverable. If the carrying values of the assets exceed the expected future cash flows
of the assets, the Company recognizes an impairment loss equal to the difference between the carrying values of the assets and
their estimated fair values. Impairment of long-lived assets is assessed at the lowest levels for which there are identifiable
cash flows that are independent from other groups of assets. The evaluation of long-lived assets requires the Company to use estimates
of future cash flows. However, actual cash flows may differ from the estimated future cash flows used in these impairment tests.



The company performed such an impairment review
and determined that the future benefits from long-lived assets no longer exceed their carrying and a write down of the carrying
value was necessary-(see “NOTE 2”).



Although the Company fully amortized its long
lived asset in 2011 consisting of intellectual property which consists of its mold design for the auto traction mat; the Company
plans to engage in production of the auto mold and produce traction mats for autos in 2012/2013 through the use of its intellectual
industrial design.



F-8



SEGMENT INFORMATION



The
Financial Accounting Standards Board (FASB) released the 200 section of the Accounting Standards Codification for the purpose of
discussing the broad topic of Presentation. Accounting Standards Codification 280 (ASC 280) was released to address the more specific
topic of how businesses with multiple segments should report these.Operating segments are identified as components of an
enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker,
or decision making group, in making decisions how to allocate resources and assess performance. The information disclosed herein,
materially represents all of the financial information related to the Company's principal operating segment.



EARNINGS PER SHARE



Earnings per
share is calculated in accordance with the ASC Topic 260, “Earnings Per Share”specifying
the computation, presentation and disclosure requirements of earnings per share information. Basic earnings per share have been
calculated based upon the weighted average number of common shares outstanding. Stock options and warrants have been excluded as
common stock equivalents in the diluted earnings per share because they are either anti-dilutive, or their effect is not material.



CONCENTRATIONS OF CREDIT RISK



Financial instruments and related items, which
potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and trade receivables.
The Company places its cash and temporary cash investments with high credit quality institutions. At times, such investments may
be in excess of the FDIC insurance limit.



ADVERTISING



The Company follows a policy of charging the
costs of advertising to expenses incurred. The Company incurred advertising expenses totaling $23,700 for the year ended December
31, 2011 and $26,310 for the year ended December 31, 2010.



NEW ACCOUNTING PRONOUNCEMENTS



FASB issued ASC-855,
Subsequent Events(“ASU 2010-09”), to address subsequent events as they relate to the Company financial statements.
 A subsequent event is something happens after the balance sheet date but before the financial statements are issued. 
There are two types of subsequent events, (1) more evidence about events that existed (2) events that did not exist at the balance
sheet date.ASC-855 did not
have a material impact on our Consolidated Financial Statements.



F-9



In June 2009, the FASB issued Accounting Standards
Update (“ASU”) 2009-01, Topic 105 – Generally Accepted Accounting Principles(“GAAP”) (“ASU
2009-01”), which superseded all accounting standards in U.S. GAAP, aside from those issued by the SEC.  The codification
does not change or alter existing GAAP.  ASU 2009-01 is effective for reporting periods ending after September 15, 2009.  We
adopted ASU 2009-01 for reporting in the fourth quarter of 2010.  Adoption of ASU 2009-01 did not have a material impact
on our Consolidated Financial Statements.



In May 2011, the FASB issued ASU 2011-04 Fair
Value Measurement (Topic 820). The ASU is the result of joint efforts by the FASB and International Accounting Standards Board
(IASB) to develop a single, converged fair value framework. While the ASU is largely consistent with existing fair value measurement
principles in U.S. GAAP, it expands existing disclosure requirements for fair value measurements and makes other amendments to
eliminate unnecessary wording differences between U.S. GAAP and IFRSs. The amendments are effective for annual and interim goodwill
impairment tests performed for fiscal years beginning after December 15, 2011. The impact of this standard has been taken into
account as noted in NOTES 2, 3 and 4 of the Company’s financial statements.



There were various other updates recently issued,
most of which represented technical corrections to the accounting literature of application to specific industries and are not
expected to have a material impact on the Company's consolidated financial position, results of operations or cash flows.



GOING CONCERN



The Company has had losses since its inception. 
There is no assurance that we will become profitable in the future.



The accompanying financial statements have
been prepared assuming that the Company will continue as a going concern that contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business. However, the ability of the Company to continue as a going concern on a longer-term
basis will be dependent upon the ability to generate sufficient cash flow from operations to meet its obligations on a timely basis,
the ability to successfully raise additional financing, and the ability to ultimately attain profitability.



NOTE 2 – CHANGE IN ACCOUNTING ESTIMATE



In 2011, the company elected to change its method of calculating
depreciation and amortization to more appropriately reflect the nature of the assets. In 2005, assets were purchased for $100,000
and value was allocated as follows:



Equipment -      $70,000 with a useful life of 7
years and residual value of $40,000

Furniture - 	    $10,000 with a useful life of 5 years and
residual value of $3,330

Computers - 	$20,000 with a useful life of 5 years and residual
value of $6,670



Management has determined that the following better represents the
assets, their useful lives and residual values:



Intangibles (Intellectual Property) - $70,000 fully amortized in
2011.

Furniture - 	                                       $10,000 with a useful life of 7 years and no residual
value.

Computers - 	                                    $20,000 with a useful life of 3 years and no residual
value.



Comparison of Depreciation and Amortization expense under the two
principles:



|                                             | Expense | Accumulated Depreciation
        and Amortization
|-------------------------------------------- | ------- | -------------------------------------------------
|2010                                         |         |                                                  
|As reported:                                 | $8,286  | $43,498                                          
|New estimate:                                | $8,095  | $46,750                                          
|2011                                         |         |                                                  
|Old estimate (including impairment expense): | $46,500 | $90,000                                          
|New estimate (including impairment expense)  | $52,179 | $98,929                                          



In 2011, the company recognized $3,247 of additional depreciation
expense to reflect the depreciation of 3 year assets (computers) purchased in 2005.



Current and Future depreciation and amortization expense effects:



|              | 2012   | 2013
|------------- | ------ | ----
|Old Estimate: | $0     | $0  
|New Estimate: | $1,071 | $0  



NOTE 3 – FIXED ASSETS



Property and Equipment at December 31, 2011 consists of the
following:



|Property and Equipment      |  |  |          
|--------------------------- |  |  | ---------
|Computers                   |  |  | $ 20,000 
|Furniture                   |  |  | 10,000   
|Property and Equipment      |  |  | 30,000   
|Accumulated Depreciation    |  |  | (28,929) 
|Property and Equipment, net |  |  | $   1,071



Intangible Assets at December 31, 2011 consists of the following:



|Intangible Assets        |  |  |         
|------------------------ |  |  | --------
|Intangible Assets Total  |  |  | $ 70,000
|Accumulated Amortization |  |  | (70,000)
|Intangible Assets, net   |  |  | $0      



The Company’s intellectual property consists of the industrial
design for an Auto traction mold and Auto traction mat design which was acquired in 2005. The Company reclassified equipment
as intellectual property at year end 2011 and after impairment analysis and amortization, considers it fully amortized.



F-10



NOTE 4: PRIOR PERIOD ADJUSTMENTS AND RESTATEMENT OF REPORTED NET
INCOME



The previously issued financial statements for 2010 have been restated.
Sales invoiced prior to the end of the year and paid in early 2011 were not reflected on the 2010 financial statements as required
by GAAP. The effect of the correction is as follows:



|                                                 |   | As Previously Stated |   | As Restated
|------------------------------------------------ | - | -------------------- | - | -----------
|Accounts Receivable:                             | $ | 420                  | $ | 31,186     
|Total Current Assets                             |   | 1,462                |   | 32,321     
|Total Assets:                                    |   | 57,964               |   | 88,733     
|Retained Earnings:                               |   | 24,823               |   | 55,592     
|Total Liabilities and
        Retained Earnings: |   | 57,964               |   | 88,733     
|                                                 |   |                      |   |            
|Sales:                                           |   | 88,143               |   | 118,909    
|Total Income                                     |   | 88,143               |   | 118,909    
|Net (Loss) Before Provision for Income Taxes     |   | (47,245)             |   | (16,476)   
|Net (Loss)                                       |   | (47,245)             |   | (16,476)   
|                                                 |   |                      |   |            
|Net (Loss)
        Per Share                     | $ | -                    |   | (.01)      





NOTE 5 - INCOME TAXES



We account for income taxes in accordance with
FASB ASC 740, Income Taxes which requires the recognition of deferred tax liabilities and assets for the expected future
tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities
and assets are determined based on the difference between financial statements and tax bases of assets and liabilities using enacted
tax rates in effect for the year in which the differences are expected to reverse. Temporary differences between taxable income
reported for financial reporting purposes and income tax purposes are insignificant.



At December 31, 2011 the Company had net operating
losses carry-forward of $89,634.



NOTE 6 - EARNINGS
PER SHARE



Basic earnings per share is calculated using
the weighted average number of common shares outstanding during each year. Diluted earnings per share include the net number of
shares that would be issued upon the exercise of stock options using the treasury stock method. Options are not considered in loss
years as they would be anti-dilutive. There are no shares with a dilutive impact at December 31, 2011 and 2010.



NOTE 7 - CAPITAL STOCK



COMMON STOCK



The Company is authorized to issue 25,000,000
shares of common stock, par value .001 per share. The company has 8,585,977
shares issued at December 31, 2011 and  2010.



From March 15, 2010 to July 30, 2010 the Company
issued 223,000 shares at a price of $.10 per share through a Reg D 506 Private Offering.



On December 29, 2010 the Company issued 25,000
shares of restricted 144 common stock per a contract with Direct Media Enterprises which were dividend to the shareholders of Direct
Media Enterprises for media advertising via Direct Media Enterprise’s kiosk technology. The stock was issued for initial
video production services at a price of $.10 per share (services valued at $2,500).



In the year ended December 31, 2011 the Company
issued no stock.



NOTE 8 - COMMITMENTS AND CONTINGENCIES



LEASE COMMITMENTS



The Company does not lease any office space; it uses space provided
by its Chief Executive Officer free of charge to the Company.

F-11



PURCHASE AGREEMENTS



On June 11, 2005 the Company entered into a
Marketing/Sales Contract with OTW Enterprises LLC. OTW Enterprises LLC is the manufacturer of the Portable Tow Truck and the Overhead
Door Saver. The contract entitles the Company to exclusive marketing rights within the USA and Europe for the Portable Tow Truck
and the Overhead Door Saver. The Company began marketing the products to UPS and Federal Express on January 15, 2005.
This agreement was verbally amended in 2007 where we agreed to allow the Manufacturer of the Product to sell the Portable Tow Truck
through its website to the retail markets.



NOTE 9 - LITIGATION



In the ordinary course of business, we may
be involved in legal proceedings from time to time. Although occasional adverse decisions or settlements may occur, we believe
that the final disposition of such matters will not have material adverse effect on its financial position, results of operations
or liquidity. We will seek to minimize disputes with our customers but recognize the inevitability of legal action in today's business
environment as an unfortunate price of conducting business.



At this time there is no past or pending litigation.



NOTE 10 – SUBSEQUENT EVENTS



Subsequent events were evaluated by the Company
through the date the financial statements were issued.  There were no other events that occurred subsequent to December
31, 2011 that would require recognition or disclosure in the Company’s financial statements.



F-12



ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE.



On March 7, 2012 we filed an 8-K regarding our change of accountants
and on March 12, 2012 we filed an 8-K/A regarding our change of accountants.



Malcolm Pollard, Inc. (“Pollard”)
resigned on November 28, 2011 as the Company’s independent registered public accounting firm due to his retirement from his
accounting practice. Subsequently the Company engaged Hamilton PC (“Hamilton”) as its independent registered
public accounting firm to audit its financial statements as of December 31, 2011. The Company does not have an audit committee.
Pollard had its registration withdrawn on November 30, 2011 as being an independent registered public accounting firm with the
Public Company Accounting Oversight Board. From November 28, 2011 to February 29, 2012 Pollard performed no audit or review services
for the Company.



During the Company's two most recent fiscal
years ended December 31, 2010 and 2009, the Company did not consult Hamilton with respect to any of the matters described in Item
304(a)(2) of Regulation S-K.



Pollard’s audit reports regarding the
Company's financial statements for the fiscal years ended December 31, 2010 and 2009 contained no adverse opinion or disclaimer
of opinion nor were they qualified or modified as to the uncertainty, audit scope or accounting principles, except that its audit
reports for such fiscal years contained a going concern qualification.



The Company and Pollard have not, during the
fiscal years ended December 31, 2010 and 2009 and through the date of February 29, 2012 had any disagreement on any matter of accounting
principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreement, if not resolved to
Pollard’s satisfaction, would have caused Pollard to make reference to the subject matter of the disagreement in connection
with its reports.



During the fiscal years ended December 31,
2010 and 2009, Hamilton had not advised the Company of any of the enumerated items described in Item 304(a)(1)(v) of Regulation
S-K.



The Company requested that Pollard furnish
a letter addressed to the SEC stating whether or not Pollard agrees with the statements made in the 8-K and 8-K/A as Exhibit 16
which was attached as Exhibit 16 in the March 12 8-K/A.



ITEM 9A.   CONTROLS AND PROCEDURES.



(a) Evaluation of Disclosure Controls and Procedures



At the end of the period covered by this Annual
Report on Form 10-K, our management, under the supervision and with the participation of our Chief Executive Officer and Chief
Financial Officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures. Based
on that evaluation, our Chief Executive Officer and Chief Financial Officer believe that:



|· | Our disclosure controls and procedures are designed to ensure that information required to be disclosed by us in the reports we file under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms; and
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



23



|· | Our disclosure controls and procedures operate such that important information flows to appropriate collection and disclosure points in a timely manner and are effective to ensure that such information is accumulated and communicated to our management, and made known to our Chief Executive Officer and Chief Financial Officer, particularly during the period when this Annual Report was prepared, as appropriate to allow timely decisions regarding the required disclosure.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Autovative Product’s Chief Executive
Officer and Chief Financial Officer have evaluated our disclosure controls and procedures and concluded that these controls and
procedures were effective as of December 31, 2011.



(b) Management's Annual Report on Internal
Control over Financial Reporting



The management of Autovative Products, Inc.
is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control system
was designed to provide reasonable assurance to our management and Board of Directors regarding the preparation and fair presentation
of published financial statements.



All internal control systems, no matter how
well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable
assurance with respect to financial statement preparation and presentation.



In making our assessment of internal control
over financial reporting, management used the criteria issued by the Committee of Sponsoring Organizations of the Treadway Commission
(COSO) in Internal Control—Integrated Framework.Based on our assessment, we believe that, as of December 31,
2011, our internal control over financial reporting is effective at the reasonable assurance level based on those criteria.



ITEM 9B. SUBSEQUENT EVENTS



Subsequent events were evaluated by the Company
through the date the financial statements were issued.  There were no other events that occurred subsequent to December
31, 2011 that would require recognition or disclosure in the Company’s financial statements.





PART III



ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.



Executive Officers and Directors



The following table and subsequent discussion contains the complete
and accurate information concerning our directors and executive officers, their ages, term served and all of our officers and their
positions, who will serve in the same capacity with us upon completion of the offering.



|Name             |  | Age |  | Term Served                                |  | Title / Position(s)                             
|---------------- |  | --- |  | ------------------------------------------ |  | ------------------------------------------------
|David Funderburk |  | 64  |  | Since inception
        (December 8, 2004) |  | President/CEO, Secretary, Treasurer and Director
|                 |  |     |  |                                            |  |                                                 



There are no other persons nominated or chosen to become directors
or executive officers nor do we have any employees other than above.



DAVID FUNDERBURK



David Funderburk, is the founder and
Director of Autovative Products, Inc. Mr. Funderburk has been the President and Chief Executive since its inception. Mr. Funderburk
graduated from the University of San Diego with a Master’s Degree and began his business career analyzing and developing
training programs for the U.S. Government. He then began building custom homes in San Diego County as a general contractor and
owner of North County Domes, after which he became an independent real estate consultant and investor. Mr. Funderburk has served
as a fiduciary and trustee for numerous trusts, and has served as an Officer of several non-public corporations. Since 1990 he
has applied his study of contract and business law towards developing business strategies for clients. He is also a financial strategist
and an independent business consultant as the Manager of Service International Limited Liability Company.



24



Our directors will hold office until
the next annual meeting of shareholders and the election and qualification of their successors. Directors receive no compensation
for serving on the board of directors other than reimbursement of reasonable expenses incurred in attending meetings. Officers
are appointed by the board of directors and serve at the discretion of the board.



No officer, director, or persons nominated
for such positions and no promoters or significant employee of AUTOVATIVE PRODUCTS, INC. has been involved in legal proceedings
that would be material to an evaluation of officers and directors.



Indemnification of Directors and Officers



Except as permitted by the Nevada Revised Statutes,
the Company’s Articles of Incorporation do not provide for any additional or different indemnification procedures. At present,
there is no pending litigation or proceeding involving a director, officer or employee of the Company regarding which indemnification
is sought, nor is the Company aware of any threatened litigation that may result in claims of indemnification. The Company has
not obtained director’s and officer’s liability insurance, although the board of directors of the Company may determine
to investigate and, possibly, acquire such insurance in the future.



Conflict of Interest - Management’s
Fiduciary Duties



Our directors and officers may become, in their
individual capacity, officers, directors, controlling shareholders and/or partners of other entities engaged in a variety of businesses.



SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE



Section 16(a) of the Exchange Act requires
our directors, executive officers and persons who own more than 10 percent of a registered class of our equity securities, file
with the SEC initial reports of ownership and reports of changes in ownership of our equity securities. Officers, directors and
greater than 10 percent stockholders are required by SEC regulation to furnish us with copies of all Section 16(a) forms they file.
Based solely upon a review of copies of such forms filed on Forms 3, 4, and 5, and amendments thereto furnished to us, we believe
that during the year ended December 31, 2011, our executive officers, directors and greater than 10 percent beneficial owners complied
on a timely basis with all Section 16(a) filing requirements.



COMMITTEES OF THE BOARD OF DIRECTORS



Compensation Committee. Our board of
directors has a compensation committee. However, no members to the committee have been appointed and the committee has not been
formally organized. The compensation committee will make recommendations to the board of directors concerning salaries and compensation
for our executive officers and employees. Our board adopted a written charter for the compensation committee. Since the compensation
committee has been formed recently, there have been no meetings held or members appointed at the time of this Annual Report.



Audit Committee. Our board of directors
has an audit committee which will be directly responsible for the appointment, compensation, and oversight of the work of any registered
public accounting firm employed by us (including resolution of disagreements between our management and the auditor regarding financial
disclosure) for the purpose of preparing or issuing an audit report or related work. Our board adopted a written charter for the
audit committee. The audit committee will review and evaluate our internal control functions. Since the audit committee has been
formed recently, there have been no meetings held or members appointed at the time of this Annual Report.



25



The members of the audit committee will be
independent as defined under Rule 4200(a)(15) of the NASD's listing standards.



Executive Committee. We do not have
an executive committee, although our board of directors is authorized to create one.



Nominating Committee. Our board of directors
has a nominating committee. No meetings have been held or members appointed. The functions to be performed by the nominating committee
include selecting candidates to fill vacancies on the board of directors, reviewing the structure and composition of the board,
and considering qualifications requisite for continuing board service. The nominating committee will consider candidates recommended
by any of our stockholders. The policies and procedures with respect to the consideration of such candidates are set forth below.



The recommended candidate is to be submitted
to us in writing addressed to our principal offices. The recommendation is to be submitted by the date specified in Rule 14a-8
of the Exchange Act for submitting stockholder proposals to be included in our annual stockholders' meeting proxy statement.



The recommendation shall be in writing and
shall include the following information: name of candidate; address, phone, and fax number of candidate; a statement signed by
the candidate certifying that the candidate wishes to be considered for nomination to our board of directors; and information responsive
to the requirements of Regulation S-K, Item 401 with respect to the candidate; and state the number of shares of our stock beneficially
owned by the candidate.



The recommendation shall include a written
statement of the candidate as to why the candidate believes that he meets the director qualification criteria and would otherwise
be a valuable addition to our board of directors.



The nominating committee shall evaluate the
recommended candidate and shall, after consideration of the candidate after taking account of the director qualification criteria
set forth below, determine whether or not to proceed with the candidate in accordance with the procedures outlined under "Process
for Identifying Candidates" below.



These procedures do not create a contract between
us, on the one hand, and our security holder(s) or a candidate recommended by our security holder(s), on the other hand. We reserve
the right to change these procedures at any time, consistent with the requirements of applicable law and rules and regulations.



Director Qualifications Criteria. As
minimum qualifications, all candidates must have the following characteristics:



| | - | The highest personal and professional ethics, integrity and values;
| | - | -------------------------------------------------------------------



| | - | Broad-based skills and experience at an executive, policy-making level in business, academia, government or technology areas relevant to our activities;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | A willingness to devote sufficient time to become knowledgeable about our business and to carry out his duties and responsibilities effectively;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------



| | - | A commitment to serve on the board for two years or more at the time of his initial election; and
| | - | -------------------------------------------------------------------------------------------------



| | - | Be between the ages of  30 and 70, at the time of his/her initial election.
| | - | ---------------------------------------------------------------------------



26



Process for Identifying and Evaluating Candidates. The nominating
committee's process for identifying and evaluating candidates is:



| | - | The chairman of the board, the nominating committee, or other board members identifies the need to add new members to the board with specific criteria or to fill a vacancy on the board;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | The chair of the nominating committee initiates a search, working with staff support and seeking input from the members of the board and senior management, and hiring a search firm, if necessary;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | The nominating committee identifies an initial slate of candidates, including any recommended by security holders and accepted by the nominating committee, after taking account of the director qualifications criteria set forth above;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | The nominating committee determines if any board members have contacts with identified candidates and if necessary, uses a search firm;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------



The chairman of the board, the chief executive
officer and at least one member of the nominating committee interview prospective candidate(s);



| | - | The nominating committee keeps the board informed of the selection progress;
| | - | ----------------------------------------------------------------------------



| | - | The nominating committee meets to consider and approve final candidate(s); and
| | - | ------------------------------------------------------------------------------



| | - | The nominating committee presents selected candidate(s) to the board and seeks full board endorsement of such candidate(s).
| | - | ---------------------------------------------------------------------------------------------------------------------------



COMPENSATION OF DIRECTORS



We do not compensate any of our directors for
their services as directors other than stock for their time. However, we do reimburse our directors for expenses incurred in attending
board meetings and issue stock for their time.



CODE OF ETHICS



We have adopted a code of ethics that applies to all our employees.



| | - | Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | Full, fair, accurate, timely, and understandable disclosure in reports and documents that we file with, or submit to, the SEC and in other public communications made by us;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | Compliance with applicable governmental laws, rules and regulations;
| | - | --------------------------------------------------------------------



| | - | The prompt internal reporting of violations of the code to an appropriate person or persons identified in the code; and
| | - | -----------------------------------------------------------------------------------------------------------------------



| | - | Accountability for adherence to the code.
| | - | -----------------------------------------



27



ITEM 11. EXECUTIVE COMPENSATION.



SUMMARY OF CASH AND CERTAIN OTHER COMPENSATION



Executive Compensation



Summary Compensation Table



|Name and Principal Position                                   | Year |  | Salary
        ($) |  | Bonus
        ($) |  | Stock Awards
        ($) |  | Option Awards
        ($) |  | Non-Equity Incentive Plan Compensation ($) |  | Non-Qualified Deferred Compensation Earnings
        ($) | Commissions
        ($) |  | Totals
        ($) |        
|------------------------------------------------------------- | ---- |  | ------------------ |  | ----------------- |  | ------------------------ |  | ------------------------- |  | ------------------------------------------ |  | -------------------------------------------------------- | ----------------------- |  | ------------------ | -------
|                                                              |      |  |                    |  |                   |  |                          |  |                           |  |                                            |  |                                                          |                         |  |                    |        
|David Funderburk, CEO, and Chairman of the Board of Directors | 2010 |  |                    |  |                   |  |                          |  |                           |  |                                            |  |                                                          |                         |  |                    | $14,401
|David Funderburk, CEO, and Chairman of the Board of Directors | 2011 |  |                    |  |                   |  |                          |  |                           |  |                                            |  |                                                          |                         |  |                    | $9,715 



28



Option Grants Table.There were no individual grants
of stock options to purchase our common stock made to the executive officer named in the Summary Compensation Table through 
December 31, 2011.



Compensation of Officers and Directors



We have not paid any salaries since the inception
of the Company. We do not anticipate beginning to pay salaries until we have adequate funds to do so. There are no stock option
plans, retirement, pension, or profit sharing plans for the benefit of our officer and director.



David Funderburk has received compensation
in the way of commissions on sales to date. In 2010 he received commissions totaling $14,401 and in 2011 he received commissions
totaling $9,715.



STOCK OPTION AND STOCK APPRECIATION RIGHTS



OPTION EXERCISES AND HOLDINGS



There were no Option Exercises that were activated or exercised.



The compensation program for our executives consists of three key
elements:



| | - | A base salary, and expenses
| | - | ---------------------------



| | - | A performance bonus, insurance and
| | - | ----------------------------------



| | - | Periodic grants and/or options of our common stock.
| | - | ---------------------------------------------------



Base Salary. The chief executive officer
and all other senior executive officers receive compensation based on such factors as competitive industry salaries, a subjective
assessment of the contribution and experience of the officer, and the specific recommendation by the chief executive officer. For
fiscal 2010 and 2011, David Funderburk our only officer and director waived any cash compensation as a salary but was compensated
with commissions.



Performance Bonus. A portion of each
officer's total annual compensation is in the form of a bonus. All bonus payments to officers must be approved by the compensation
committee based on the individual officer's performance and company performance. For fiscal 2010 and 2011 no bonus compensation
was paid to any of our executive officers.



Stock Incentive. Stock options are granted
to executive officers based on their positions and individual performance. Stock options provide incentive for the creation of
stockholder value over the long term and aid significantly in the recruitment and retention of executive officers. The compensation
committee considers the recommendations of the chief executive officer for stock option grants to executive officers (other than
the chief executive officer) and approves, disapproves or modifies such recommendation. For fiscal 2010 and 2011 no stock option
grants where given to any of our executive officers.



29



EMPLOYMENT AGREEMENTS



We have not entered into any employment agreements
with any of our employees, and employment arrangements are all subject at the discretion of our sole director, David Funderburk.



ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.



SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION
PLANS



None



SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT



The following table sets forth, as of December 31, 2011, information
concerning ownership of our securities by:



| | - | Each person who owns beneficially more than five percent of the outstanding shares of our common stock;
| | - | -------------------------------------------------------------------------------------------------------



| | - | Each person who owns beneficially more than five percent of the outstanding shares of our preferred stock;
| | - | ----------------------------------------------------------------------------------------------------------



| | - | Each director;
| | - | --------------



| | - | Each named executive officer; and
| | - | ---------------------------------



| | - | All directors and officers as a group.
| | - | --------------------------------------



BENEFICIAL OWNERS AND MANAGEMENT EQUITY POSITION(S)



The table below sets forth, as of December
31, 2011, certain information with respect to the beneficial ownership of the common stock of our Company by each person who we
know to be beneficial owner of more than 5% of any class or series of our capital stock, each of the directors and executive officers
individually, and all directors and executive officers as a group. Unless otherwise indicated, each person named in this table
has sole voting and investment power with respect to the shares beneficially owned.



|Title of Class | Name and Address of Beneficial Owner         | Amount and Nature of Beneficial Ownership | Percent of Class
|-------------- | -------------------------------------------- | ----------------------------------------- | ----------------
|Common         | David Funderburk – CEO and Operating Manager | 7,200,000                                 | 84%             
|               |                                              |                                           |                 



1) Unless otherwise indicated, the address
for each of the stockholder(s) listed herein is c/o Autovative Products, Inc., 502 N. Santa Fe Avenue, Ste. D, Vista, CA 92083.



Unless otherwise indicated, each person named
in the table above has the sole voting and investment power with respect to his shares of our common and preferred stock beneficially
owned.



30



(2) Beneficial ownership is determined in accordance
with the rules of the SEC.



(3) Each share of the Series A preferred stock
is convertible into three shares of Common Stock. The percentages of voting power prior to conversion are approximately the same.



There are no arrangements, known to us, including
any pledge by any person of our securities, the operation of which may at a subsequent date result in a change in control of Autovative
Products, Inc.



Transfer Agent



We have engaged Island Stock Transfer
to act as our stock registrar and transfer agent. Its address and telephone number is100 Second
Avenue S. Suite 705S, St. Petersburg, Fl 33701 Phone: (727) 289-0010 Fax: (727) 289-0069.
Up until engaging our transfer agent, we have acted as our own transfer agent and registrar.



ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.



NONE



ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.



AUDIT FEES



The aggregate billed by Malcolm Pollard, Inc. for professional services
rendered for the Company’s S-1 Registration Statement was $5,000.



The aggregate fees in 2012 billed by Hamilton P.C. for professional
services rendered for the audit of our annual financial statement for fiscal year ended December 31, 2011 was $7,000.



AUDIT-RELATED FEES



There were no other fees billed by Hamilton P.C. for professional
services rendered, other than as stated under the captions Audit Fees.



TAX FEES



There were no other fees billed by Hamilton P.C. for professional
services rendered, other than as stated under the captions Audit Fees.



ALL OTHER FEES



There were no other fees billed by Hamilton P.C. for professional
services rendered, other than as stated under the captions Audit Fees, Audit Related Fees, and Tax Fees.



31









ITEM 15. EXHIBITS AND REPORTS ON FORM 8-K.



8-K	      3/7/2012 	 Item
4.01. 	Changes in registrant's certifying accountant.



8-K/A	3/12/12Item 4.01. 	Changes in registrant's certifying accountant.



(a) Financial Statement Schedules.



None.



(b) Exhibits



|Number | Exhibit                                                                                                                                                                                                                         
|------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|23.1** | Consent of Independent Certified Public Accountants.                                                                                                                                                                            
|31.1** | Certification of the Chief Executive Officer, as the principal executive officer and the principal financial officer, under 18 U.S.C. Section 1350, as adopted in accordance with section 302 of the Sarbanes-Oxley Act of 2002.
|32.1** | Certification of the Chief Executive Officer, as the principal executive officer and the principal financial officer, under 18 U.S.C. Section 1350, as adopted in accordance with Section 906 of the Sarbanes-Oxley Act of 2002.



** Filed Herewith

32





SIGNATURES



Pursuant to the requirements of the Securities
Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing
on Form 10-K and has duly caused this registration statement to be signed on our behalf by the undersigned, in the City of Carlsbad,
CA. on April 12, 2012.





|                       | AUTOVATIVE PRODUCTS, INC |                                                                                           
|---------------------- | ------------------------ | ------------------------------------------------------------------------------------------
|                       |                          |                                                                                           
|Dated: April 12, 2012. | By:                      | /s/ David Funderburk                                                                      
|                       |                          | David Funderburk,                                                                         
|                       |                          | President, Treasurer and Secretary (Principal Executive, Financial and Accounting Officer)
|                       |                          |                                                                                           



In accordance with the requirements of the Securities Act of 1933,
as amended, this registration statement has been signed by the following persons in the capacities and on the dates stated.





|                                              |                                                                                                      |                
|--------------------------------------------- | ---------------------------------------------------------------------------------------------------- | ---------------
|SIGNATURE                                     | TITLE                                                                                                | DATE           
|                                              |                                                                                                      |                
|/S/ David Funderburk
        David Funderburk | Director, President, Treasurer and Secretary (Principal Executive, Financial and Accounting Officer) | April 12, 2012.
|                                              |                                                                                                      |                
|                                              |                                                                                                      |                



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