**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

 

**FORM 10-QSB**

 

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

 

**For the quarterly period ended June 30, 2007**

 

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

             

**For the transition period from ___________ to            __________**

 

Commission file number 333-128532

 

**WORLD TROPHY OUTFITTERS, INC.**

(Exact name of registrant as specified in its charter)

 

|   | Nevada | 20-2190950 |
|--------|--------|------------|

| State or other jurisdiction of | I.R.S. Employer |
|--------------------------------|-----------------|

| Incorporation or organization | Identification No. |
|-------------------------------|--------------------|

 

 

4250            Production Court

| Las Vegas, Nevada | 89115   |
|-------------------|--------------|

| Address of principal executive offices | Zip Code |
|----------------------------------------|----------|

 

Registrant’s telephone number, including area code(801) 635-5576

 

Check            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 is a shell company (as            defined in Rule 12b-2 of the Exchange Act). Yes **x**  No **o**

 

Indicate the number of shares outstanding of each of the issuer’s            classes of common stock, as of the latest practicable date:

             

|   | Class | Outstanding at August 14, 2007 |
|--------|-------|--------------------------------|

| Common Stock, $0.001 Value | 11,219,400 |
|----------------------------|------------|

             

Transitional Small Business Disclosure Format. Yes **o**  No **x**

 

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**WORLD TROPHY OUTFITTERS, INC.**

**FORM 10-QSB**

**TABLE OF CONTENTS**

 

**PART            I - FINANCIAL INFORMATION**

 

Item 1.            Financial Statements

 

|   | Condensed Balance Sheet, June 30, 2007                            (unaudited) | 2 |
|--------|-------------------------------------------------------------------------------|---|

 

Condensed Statements of Operations for the Three Months

|   | ended June 30, 2007 and 2006 (unaudited) | 3 |
|--------|------------------------------------------|---|

 

Condensed Statements of Cash Flows for the Three Months

|   | ended June 30, 2007 (unaudited) | 4 |
|--------|---------------------------------|---|

 

|   | Notes to Condensed Financial Statements | 5 |
|--------|-----------------------------------------|---|

 

| Item 2. Management’s Discussion and Analysis or                            Plan of Operations | 10 |
|-----------------------------------------------------------------------------------------------------|----|

 

| Item 3. Controls and Procedures | 14 |
|---------------------------------|----|

 

 

| **Part II - OTHER INFORMATION** |
|---------------------------------|

 

| Item 1. Legal Proceedings | 15 |
|---------------------------|----|

 

| Item 2. Unregistered Sales of Equity Securities and Use                            of Proceeds | 15 |
|------------------------------------------------------------------------------------------------|----|

 

| Item 3. Defaults Upon Senior Securities | 15 |
|-----------------------------------------|----|

 

| Item 4. Submission of Matters to a Vote of Security                            Holders | 15 |
|----------------------------------------------------------------------------------------|----|

 

| Item 5. Other Information | 15 |
|---------------------------|----|

 

| Item 6. Exhibits | 15 |
|------------------|----|

 

| **SIGNATURES** | 17 |
|----------------|----|

 

 

1

 

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**PART 1 – FINANCIAL INFORMATION**

**Item 1. Financial Statements**

 

| **WORLD TROPHY OUTFITTERS, INC.**                          |
|------------------------------------------------------------|
| **Condensed Balance Sheet (Unaudited)**

**June 30, 2007** |

 

| **ASSETS**                                                                                                                                                  |   |   |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|
|                                                                                                                                                        |   |   |    |   |
| Current assets:                                                                                                                                             |   |   |    |   |
| Cash                                                                                                                                                        |   | $      | 23,214  |   |
| Inventories                                                                                                                                                 |   |   | 54,000  |   |
| Prepaid expenses                                                                                                                                            |   |   | 583     |   |
|                                                                                                                                                        |   |   |    |   |
| Total current assets                                                                                                                                        |   |   | 77,797  |   |
|                                                                                                                                                        |   |   |    |   |
| Deferred tax asset                                                                                                                                          |   |   | 144     |   |
|                                                                                                                                                        |   |   |    |   |
|                                                                                                                                                        |   | $      | 77,941  |   |
|                                                                                                                                                        |   |   |    |   |
| **LIABILITIES AND STOCKHOLDERS’                            EQUITY**                                                                                   |   |   |    |   |
|                                                                                                                                                        |   |   |    |   |
| Current liabilities:                                                                                                                                        |   |   |    |   |
| Accounts payable                                                                                                                                            |   | $      | 8,436   |   |
| Customer deposits                                                                                                                                           |   |   | 1,175   |   |
|                                                                                                                                                        |   |   |    |   |
| Total current liabilities                                                                                                                                   |   |   | 9,611   |   |
|                                                                                                                                                        |   |   |    |   |
| Commitments and contingencies                                                                                                                               |   |   |    |   |
|                                                                                                                                                        |   |   |    |   |
| Stockholders’ equity:                                                                                                                                 |   |   |    |   |
| Common stock; $.001 par value, 100,000,000                            sharesauthorized, 11,219,400 shares issued and                            outstanding |   |   | 11,219  |   |
| Additional paid-in capital                                                                                                                                  |   |   | 80,050  |   |
| Accumulated deficit                                                                                                                                         |   |   | (22,939 | ) |
|                                                                                                                                                        |   |   |    |   |
| Total stockholders’ equity                                                                                                                            |   |   | 68,330  |   |
|                                                                                                                                                        |   |   |    |   |
|                                                                                                                                                        |   | $      | 77,941  |   |
|                                                                                                                                                        |   |   |    |   |

 

See accompanying notes to condensed financial statements.

2

 

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| **WORLD TROPHY OUTFITTERS, INC.**                                             |
|-------------------------------------------------------------------------------|
| **Condensed Statements of Operations                            (Unaudited)** |
| **Three Months Ended June 30,**                                               |

             

 

|                                     |   | **2007** |       | **2006** |   |
|------------------------------------------|--------|----------|------------|----------|--------|
| Revenues                                 |   |     |       |     |   |   |   |
| Sales                                    |   | $        | 30,517     |     | $      | — |   |
| Sales – related party              |   |     | 6,500      |     |   | — |   |
|                                     |   |     |       |     |   |   |   |
| Total revenues                           |   |     | 37,017     |     |   | — |   |
|                                     |   |     |       |     |   |   |   |
| Cost of sales                            |   |     | 29,927     |     |   | — |   |
|                                     |   |     |       |     |   |   |   |
| Gross profit                             |   |     | 7,090      |     |   | — |   |
|                                     |   |     |       |     |   |   |   |
| General and administrative expenses      |   |     | 6,398      |     |   | 12,820 |   |
|                                     |   |     |       |     |   |   |   |
| Operating income (loss)                  |   |     | 692        |     |   | (12,820 | ) |
|                                     |   |     |       |     |   |   |   |
| Interest expense                         |   |     | 217        |     |   | — |   |
|                                     |   |     |       |     |   |   |   |
| Income (loss) before income taxes        |   |     | 475        |     |   | (12,820 | ) |
|                                     |   |     |       |     |   |   |   |
| Provision for income taxes - deferred    |   |     | 15         |     |   | 15 |   |
|                                     |   |     |       |     |   |   |   |
| Net income (loss)                        |   | $        | 460        |     | $      | (12,835 | ) |
|                                     |   |     |       |     |   |   |   |
|                                     |   |     |       |     |   |   |   |
| Net income (loss) per common share       |   | $        | —    |     | $      | — |   |
|                                     |   |     |       |     |   |   |   |
| Weighted average number of common shares |   |     |       |     |   |   |   |
| outstanding – basic and diluted    |   |     | 11,219,400 |     |   | 11,000,000 |   |
|                                     |   |     |       |     |   |   |   |

             

See accompanying notes to condensed financial statements.

 

3

 

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| **WORLD TROPHY OUTFITTERS, INC.**                                             |
|-------------------------------------------------------------------------------|
| **Condensed Statements of Cash Flows                            (Unaudited)** |
| **Three Months Ended June 30,**                                               |

 

 

 

|                                                                                                           |   | **2007** |    | **2006** |   |
|----------------------------------------------------------------------------------------------------------------|--------|----------|---------|----------|--------|
|                                                                                                           |   |     |    |     |   |   |   |
| Cash flows from operating activities:                                                                          |   |     |    |     |   |   |   |
| Net income (loss)                                                                                              |   | $        | 460     |     | $      | (12,835 | ) |
| Adjustments to reconcile net income (loss) to net                            cashused in operating activities: |   |     |    |     |   |   |   |
| Deferred income taxes                                                                                          |   |     | 15      |     |   | 15 |   |
| Decrease in:                                                                                                   |   |     |    |     |   |   |   |
| Prepaid expenses                                                                                               |   |     | 250     |     |   | — |   |
| Deposits                                                                                                       |   |     | 6,000   |     |   | — |   |
| Decrease in:                                                                                                   |   |     |    |     |   |   |   |
| Accounts payable                                                                                               |   |     | (90,267 | )        |   | (3,029 | ) |
| Customer deposits                                                                                              |   |     | — |     |   | (1,275 | ) |
| Accrued interest payable – related                            party                                      |   |     | (79     | )        |   | — |   |
|                                                                                                           |   |     |    |     |   |   |   |
| Net cash used in operating activities                                                                          |   |     | (83,621 | )        |   | (17,124 | ) |
|                                                                                                           |   |     |    |     |   |   |   |
| Cash flows from investing activities                                                                           |   |     | — |     |   | — |   |
|                                                                                                           |   |     |    |     |   |   |   |
| Cash flows from financing activities:                                                                          |   |     |    |     |   |   |   |
| Proceeds from the sale of common stock                                                                         |   |     | 9,300   |     |   | — |   |
| Reduction in accounts payable – related                            party                                 |   |     | (1,000  | )        |   | — |   |
| Reduction in note payable – related                            party                                     |   |     | (2,000  | )        |   | — |   |
|                                                                                                           |   |     |    |     |   |   |   |
| Net cash provided by financing activities                                                                      |   |     | 6,300   |     |   | — |   |
|                                                                                                           |   |     |    |     |   |   |   |
| Net decrease in cash                                                                                           |   |     | (77,321 | )        |   | (17,124 | ) |
|                                                                                                           |   |     |    |     |   |   |   |
| Cash, beginning of period                                                                                      |   |     | 100,535 |     |   | 18,875 |   |
|                                                                                                           |   |     |    |     |   |   |   |
| Cash, end of period                                                                                            |   | $        | 23,214  |     | $      | 1,751 |   |
|                                                                                                           |   |     |    |     |   |   |   |

See            accompanying notes to condensed financial statements.

 

 

4

 

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**WORLD TROPHY OUTFITTERS, INC.**

**Notes to Condensed Financial Statements (Unaudited)**

 

 

**Note 1 - Organization and Summary of Significant Accounting            Policies**

 

**Organization**

 

World Trophy Outfitters, Inc., (the Company) was incorporated under the            laws of the State of Nevada on January 13, 2005. The Company’s business            activities consist of sales of hunting permits and guided hunting excursions and            services related to these types of activities.

 

**Interim Financial Information**

 

The interim financial information of the Company as of June 30, 2007 and            for the three-month periods ended June 30, 2007 and 2006 is unaudited. In the opinion            of management, all adjustments (consisting of normal recurring items) that are            necessary to fairly present the financial position as of June 30, 2007 and the results            of operations and cash flows for the three-month periods ended June 30, 2007 and 2006            have been made. The results of operations for the three months ended June 30, 2007 are            not necessarily indicative of the results that can be expected for the entire fiscal            year ending March 31, 2008.

             

These condensed financial statements have been prepared in accordance            with accounting principles generally accepted in the United States for interim            financial statements. Accordingly, they do not include all the information and            disclosures normally required by accounting principles generally accepted in the United            States for complete financial statements.

 

**Income Taxes**

 

Deferred income taxes are provided for items reported in different            periods for income tax purposes than for financial reporting purposes.

 

**Revenue Recognition**

 

The Company is in the business of providing a booking and consulting            service for and selling big game hunting packages to high end clients who seek to hunt            with the top tier big game outfitters. The Company intends to accomplish its business            objectives primarily through the establishment of strategic alliances with guides and            outfitters and past experiences arranging for hunts.

             

The Company’s main product being sold is hunting trips, which            includes the hunting license and guide fees. This does not include the travel            requirements, any special charter fees or obtaining government visas or other            potentially required instruments to complete the hunts. The Company attempts to resell            the hunting packages at a profit or for a mark-up. The Company provides consulting            services by helping clients select an appropriate hunt. The Company believes these            consulting services are incidental to the hunting trip, and has not and does not expect            in the future to charge additional fees for these consulting services. In accordance            with Emerging Issues Task Force (“EITF”) 00-21, “Revenue Arrangements            with Multiple Deliverables”, the Company has concluded that the consulting            services incidental to the sale of hunting trips do not have value to the customer on a            stand alone basis requiring separate revenue recognition accounting from the hunting            trip revenue. The Company also offers other consulting services in arrangements            separate from hunting trips, which are described below.

 

5

 

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**WORLD TROPHY OUTFITTERS, INC.**

**Notes to Condensed Financial Statements (Unaudited)**

 

 

Industry practice generally dictates that a hunt is purchased well in            advance of the actual dates of the hunt due to significant amounts of preparation and            logistical planning required prior to the hunt. Revenues for hunt sales are recorded            when a non-refundable cash down payment and an executed sales contract are received for            the amount of the cash received. The remainder of the amount due on the sales contract            is recorded as revenue when it is received, which at times may be several months before            the dates of the related hunts. The balance due does not bear interest. The Company has            no additional rescission, refund or customer satisfaction requirements. When these            conditions are met the buyer receives all legal rights to the hunt, including the right            of transferability and any changes or modifications are between the buyer and the            outfitter.

 

The Company also from time to time generates revenues from consulting            services. This consulting revenue is generally billed on an agreed-upon hourly rate,            and may include the following types of services:

 

|   | **•** | Providing clients with advice about outfitters and                            hunts |
|--------|------------|-------------------------------------------------------------------------------------|

|   | **•** | Assisting clients with travel arrangements and obtaining                            permits |
|--------|------------|---------------------------------------------------------------------------------------------|

|   | **•** | Accompanying hunters on the hunting                            expedition |
|--------|------------|---------------------------------------------------------------------------|

|   | **•** | Taking video footage of the hunting                            expedition |
|--------|------------|---------------------------------------------------------------------------|

|   | **•** | Providing outfitters with information about improving                            operations |
|--------|------------|---------------------------------------------------------------------------------------------|

 

Revenues from consulting services are recognized when a written            consulting agreement is executed that establishes the amount and scope of service to be            provided, the consulting services have been performed and the Company has no additional            rescission, refund or customer satisfaction requirements, and collectibility of the            amount billed is reasonably assured. When a consulting agreement contains multiple            deliverables, the Company reviews the various services to be provided in accordance            with EITF 00-21 to determine if individual services to be delivered should be            considered a separate unit of accounting for purposes of determining revenue            recognition. The individual services would be considered a separate unit of accounting            if all of the following criteria are met:

 

|   | a. | The delivered item(s) has value to the customer on a                            standalone basis; |
|--------|----|---------------------------------------------------------------------------------------------------|

|   | b. | There is objective and reliable evidence of the fair                            value of the undelivered item(s); and |
|--------|----|-----------------------------------------------------------------------------------------------------------------------|

|   | c. | If the arrangement includes a general right of return                            relative to the delivered item, delivery or performance of the                            undelivered item(s) is considered probable and substantially in the                            control of the Company. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

Because the Company has only a limited operating history, it is unable            to estimate the collectibility of its accounts receivable. Accordingly, the Company is            recognizing its revenue upon receipt of payment rather than at the time of sale. As the            Company develops a history of collections, it will be able to better estimate an            allowance for possible bad debts. As of June 30, 2007, the Company had no unrecognized            accounts receivable and related sales.

 

6

 

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**WORLD TROPHY OUTFITTERS, INC.**

**Notes to Condensed Financial Statements (Unaudited)**

 

 

**Earnings Per Share**

 

The computation of basic earnings per common share is based on the            weighted average number of shares outstanding during the period.

 

The computation of diluted earnings per common share is based on the            weighted average number of shares outstanding during the period plus the common stock            equivalents which would arise from the exercise of stock options and warrants            outstanding using the treasury stock method and the average market price per share            during the period. Common stock equivalents are not included in the diluted earnings            per share calculation when their effect is anti-dilutive. The Company has not issued            any stock options or warrants.

 

**Use of Estimates in the Preparation of Financial            Statements**

 

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

 

**Reclassifications**

 

Certain amounts in the prior period financial statements have been            reclassified to conform with the current period presentation.

 

**Note 2 – Inventories**

 

Inventories at June 30, 2007 consist of four Dall sheep hunts acquired            by the Company in January 2007 at a purchase price of $13,500 per hunt. This price            includes flights from the base camp in and out of the hunting area, food and            guides.

 

**Note 3 – Stock Offering**

 

In March 2007, the Company sold 219,400 shares of common stock at $.50            per share in a public stock offering for total proceeds of $109,700. Of the total            proceeds, $100,400 was received in March 2007, and $9,300, recorded as stock            subscriptions receivable at March 31, 2007, was received in April 2007.

 

7

 

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**WORLD TROPHY OUTFITTERS, INC.**

**Notes to Condensed Financial Statements (Unaudited)**

 

 

**Note 4 - Income Taxes**

 

The Company accounts for income taxes in accordance with Statement of            Financial Accounting Standards No. 109. SFAS No. 109 requires the Company to provide a            net deferred tax asset or liability equal to the expected future tax benefit or expense            of temporary reporting differences between book and tax accounting and any available            operating loss or tax credit carry forwards.

 

Deferred tax assets are comprised of the following at June 30,            2007:

             

 

| **Deferred tax assets:**         |   |   |   |
|----------------------------------|--------|--------|--------|
| Net operating loss carry forward | $      | 8,736  |   |   |
| Organization costs               |   | 144    |   |   |
| Less valuation allowance         |   | (8,736 |   | ) |
|                             |   |   |   |   |
|                             | $      | 144    |   |   |

 

|   | The net deferred tax asset of $144 is recorded as an                            other asset at June 30, 2007. |
|--------|---------------------------------------------------------------------------------------------------------------|

 

The Company had no deferred tax liabilities at June 30, 2007. The amount            and ultimate realization of the benefits from the deferred tax assets for income tax            purposes is dependent, in part, upon the tax laws in effect, the Company’s future            earnings, and other future events, the effects of which cannot be determined. The            Company has recorded a valuation allowance to fully offset the deferred tax asset            arising from the net operating loss carry forward at June 30, 2007. The Company            anticipates being able to utilize all other deferred tax assets.

 

**Note 5 – Related Party Transactions**

 

During the three months ended June 30, 2007, the Company repaid accounts            payable of $1,000, note payable of $2,000 and accrued interest payable of $82 to the            president and majority stockholder of the Company.

 

During the three months ended June 30, 2007, the Company sold its            interest in a Marco Polo Sheep hunt to a shareholder of the Company for $6,500. The            Company had paid $6,000 for this interest, which had previously been recorded as a            deposit.

 

**Note 6 – Recently Enacted Accounting            Standards**

 

Financial Interpretation No. 48, “Accounting for Uncertainty in            Income Taxes – An Interpretation of FASB Statement No. 109”, Statement of            Financial Accounting Standards (“SFAS”) No. 159, “The Fair Value            Option for Financial Assets and Financial Liabilities – Including an Amendment of            FASB Statement No. 115”, SFAS No. 158, “Employers’ Accounting for            Defined Benefit Pension and Other Postretirement Plans”,

 

8

 

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**WORLD TROPHY OUTFITTERS, INC.**

**Notes to Condensed Financial Statements (Unaudited)**

 

 

SFAS            No. 157, “Fair Value Measurements”, SFAS No. 156, “Accounting for            Servicing of Financial Assets”, SFAS No. 155, “Accounting for Certain            Hybrid Instruments”, and SFAS No. 154, “Accounting Changes and Error            Corrections – a replacement of APB Opinion No. 20 and FASB Statement No.            3”, were recently issued. These recently-enacted accounting standards have no            current applicability to the Company or their effect on the financial statements would            not have been significant.

 

**Note 7 – Preferred Stock**

 

The Company has authorized 10,000,000 shares of preferred stock, $.001            par value, with such rights, preferences and designations and to be issued in such            series as determined by the Board of Directors. No shares are issued and outstanding as            of June 30, 2007.

 

**Note 8 – Going Concern**

 

The accompanying financial statements have been prepared in conformity            with accounting principles generally accepted in the United States of America, which            contemplate continuation of the Company as a going concern. However, the Company was            only recently formed and has a limited operating history. In addition, the            Company’s results of operations are subject to significant fluctuations from            period to period, and there can be no assurance that it will be profitable in the            future. These factors raise substantial doubt about the ability of the Company to            continue as a going concern. In this regard management is proposing to raise any            necessary additional funds not provided by operations through additional sales of its            common stock. There is no assurance that the Company will be successful in raising this            additional capital or in sustaining profitable operations. The financial statements do            not include any adjustments that might result from the outcome of these            uncertainties.

 

9

 

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**Item 2. Management’s Discussion and Analysis or Plan of            Operations**

             

The following discussion and analysis provides information which            management believes is relevant to an assessment and understanding of the            Company’s condensed results of operations and financial condition. The discussion            should be read in conjunction with the consolidated financial statements and            accompanying notes.

             

**Plan            of Operation**

             

The following discussion and analysis provides information which            management believes is relevant to an assessment and understanding of our results            of operations and financial condition. The discussion should be read in conjunction            with the financial statements and notes thereto.

             

We are in the business of selling big game hunting packages to high end            clients who seek to hunt with the top tier big game outfitters. We also offer related            consulting services for such clients. We intend to accomplish our business objectives            primarily through the establishment of strategic alliances with guides and outfitters            and our past experiences arranging for hunts. In particular, we will initially target            hunters desiring to hunt Dall Sheep, Stone Sheep, Marco Polo Sheep, Elk, Mule Deer, and            Grizzly Bears.

             

Our main product being sold is hunting trips, which includes the hunting            license and guide fees. This does not include the travel requirements, any special            charter fees or obtaining government visas or other potentially required instruments to            complete the hunts. We attempt to resell the hunting packages at a profit or for a            mark-up. We provide incidental advisory services to purchasers of hunting trips by            helping clients select an appropriate hunt. We have not and do not expect in the future            to charge additional fees for these services. We also offer other consulting services            which we may charge additional fees for which consulting services are described            below.

             

The terms of all hunt packages bought in the past and the terms we            expect to negotiate in the future are as follows: (1) we buy the right to have a hunter            come to a specific outfitter, to hunt specific animals at a specific time; (2) hunts            bought from the outfitters are not refundable and if not used before the specific time            of the hunt expire and have no residual value; (3) we have sold and expect to continue            selling in consideration for a non-refundable deposits from the client for at least 50%            of the final price at the time of booking the hunt; and (4) final and full payments for            the hunt is required at least 3 months prior to the hunt. If a customer fails to            provide final payment, we have the right to sell the hunt to another client during the            three month period prior to the hunt in question.

             

Through June 30, 2007, we had acquired fourteen Dall Sheep hunts for the            2007 and 2008 seasons with Kelly Hougen of ARRO (Yukon Canada), ten of which have been            resold. On January 20, 2007, the Company purchased four Dall Sheep hunts from ARRO,            which are available for resale. The hunts are for August 2008 and the purchase price            was $13,500 per hunt. This fee includes flights from ARRO’s base camp in and out            of the hunting area, food and guides. Through June 30, 2007, we had also acquired and            sold three other hunts and the Company’s interest in a Marco Polo Sheep hunt..            The Company anticipates acquiring additional hunts from ARRO in 2009 and            2010.

 

10

 

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**Going Concern**

             

The accompanying financial statements have been prepared in conformity            with accounting principles generally accepted in the United States of America, which            contemplate continuation of the Company as a going concern. However, the Company was            only recently formed and has a limited operating history. In addition, the            Company’s results of operations are subject to significant fluctuations from            period to period, and there can be no assurance that it will be profitable in the            future. These factors raise substantial doubt about the ability of the Company to            continue as a going concern. In this regard management is proposing to raise any            necessary additional funds not provided by operations through additional sales of its            common stock. There is no assurance that the Company will be successful in raising this            additional capital or in sustaining profitable operations. The financial statements do            not include any adjustments that might result from the outcome of these            uncertainties.

 

**Results of Operations**

 

**Three Months Ended June 30, 2007 and June 30, 2006**

 

For the three months ended June 30, 2007, we had total revenues of            $37,017 from sales of hunts. The Company purchased and resold a hunt during this period            for proceeds of $30,517. In addition, the Company sold its interest in a Marco Polo            Sheep hunt to a shareholder of the Company for $6,500.

 

|   | For the three months ended June 30, 2006, we had no                            revenues from hunt sales. |
|--------|----------------------------------------------------------------------------------------------------------|

 

Cost of sales for the three months ended June 30, 2007 consisted of the            costs of a combination hunt purchased and resold during the period of $23,927,            including guide and license fees, and the cost of the interest in the Marco            Polo Sheep hunt of $6,000, which had been previously recorded as a deposit. No cost of            sales was recorded in the three-month period ended June 30, 2006 because we had no            revenues from hunt sales during this period. Our gross profit as a percentage of total            revenues is subject to fluctuations each period primarily due to our current revenue            recognition policies that require us to recognize hunt sales generally as cash payments            are received. This may result in our recognizing the cost of sales for hunts as such            costs are incurred and recognizing the revenue from the sales of hunts in different            periods as cash payments are received from our customers.

 

For the three-month period ended June 30, 2007, our general and            administrative expenses were $6,398, consisting of legal, accounting and auditing, and            other professional expenses totaling $5,170 and other administrative expenses of            $1,228. For the three-month period ended June 30, 2006, our general and administrative            expenses were $12,820, consisting of accounting and auditing expenses of $3,334 and            travel expenses of $9,486. The travel expenses were incurred in an effort to develop            customer relationships and to identify future hunts that we may purchase for            resell.

 

For the three-month period ended June 30, 2007, we also incurred            interest expense of $217, consisting of accrued interest expense on the note payable to            related party of $3 and finance charges of $214. We did not incur any interest expense            for the three-month period ended June 30, 2006.

 

As a result, including a deferred income tax provision of $15, we            reported net income of $460 for the three-month period ended June 30, 2007. Due to the            early stages of our business development, we do not believe the results of operations            for the three months ended June 30, 2007 are indicative of operating results to be            expected in future periods. Including a deferred income tax provision of $15, we            reported a net loss of $12,835 for the three-month period ended June 30,            2006.

 

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|   | **Liquidity and Capital Resources** |
|--------|-------------------------------------|

 

As discussed above, we have a limited operating history and our results            of operations are subject to significant fluctuations from period to period. There can            be no assurance that we will be profitable in the future. These factors raise            substantial doubts about our ability to continue as a going concern.

 

As of June 30, 2007, we had working capital of $68,186 and cash of            $23,214. To date, our cash flows have primarily come from our operations and from the            issuance of our common stock.

 

For the three months ended June 30, 2007, net cash used in operating            activities was $83,621 compared to net cash used in operating activities of $17,124 for            the three months ended June 30, 2006. The net cash used in operating activities for the            three months ended June 30, 2007 resulted primarily from the payments of accounts            payable.

 

We did not have cash flows provided by or used in investing activities            during the three months ended June 30, 2006.

 

During the three months ended June 30, 2007, net cash provided by            financing activities was $6,300, consisting of proceeds of $9,300 from the collection            of stock subscriptions receivable related to our stock offering completed in March            2007, partially offset by the repayment of accounts payable of $1,000 and note payable            of $2,000 to our president and principal stockholder of the Company.

 

At June 30, 2007, we had not committed to spend any material funds on            capital expenditures. However, we will require significant funds in the future to            support our operations, primarily for the acquisition of hunt inventories. We intend to            increase the number of hunts acquired and held in inventory for resale. We anticipate            that such an investment in inventory will require increasing amounts of cash used in            operating activities during future periods. There is no assurance that we will be            successful in obtaining this additional financing.

 

We recognize revenue upon receipt of payment rather than at the time of            sale. Our deferred revenue is the unpaid amount of the purchase price of the hunts            sold. Since we do not collect the full purchase price at the time a hunt is sold, we            would expect that if the number of hunts sold increases so will the amount of deferred            income relating to those hunts.

 

Our working capital and other capital requirements for the foreseeable            future will vary based upon a number of factors, including the number of big game hunts            we acquire, the amount we spend on our sales and marketing activities and the level of            our sales. We anticipate that if the amount raised from our stock offering together            with anticipated future sales will allow us to continue our operations for a period of            at least twelve months and thereafter. There can be no assurance that we have            accurately forecasted future sales. If the amount raised in our stock offering is not            sufficient to fund our operations, we will need to locate additional sources of funds            to continue operations. There are no contractual arrangements in place that would            provide us with additional funding and there can be no assurance that we will be able            to obtain additional funding on commercially reasonable terms or at all.

 

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|   | **Off Balance Sheet Arrangements** |
|--------|------------------------------------|

 

We do not have any off balance sheet arrangements that have or are            reasonably likely to have a current or future effect on our financial condition,            changes in financial condition, revenues or expenses, results of operations, liquidity,            capital expenditures or capital resources that is material to investors.

 

|   | **Critical Accounting Policies** |
|--------|----------------------------------|

 

Accounts Receivable

 

Accounts receivable are amounts due on hunting permit sales (see            “Revenue Recognition” below), are unsecured, and do not bear interest.            Because we have only a limited operating history, we are unable to estimate the            collectibility of our accounts receivable. Accordingly, we recognize revenue upon            receipt of payment rather than at the time of sale. As we develop a history of            collections, we will be able to better estimate an allowance for possible bad debts. We            had no accounts receivable and related sales which had not been recognized at June 30,            2007.

 

Inventories

 

Inventories are stated at the lower of average cost or market, and            consist of hunting permits.

 

Income Taxes

 

Deferred income taxes are provided for items reported in different            periods for income tax purposes than for financial reporting purposes.

 

Revenue Recognition

 

The Company is in the business of selling big game hunting packages to            high end clients who seek to hunt with the top tier big game outfitters. We also offer            related consulting services to these clients. We intend to accomplish our business            objectives primarily through the establishment of strategic alliances with guides and            outfitters and past experiences arranging for hunts.

             

The Company’s main product being sold is hunting trips, which            includes the hunting license and guide fees. This does not include the travel            requirements, any special charter fees or obtaining government visas or other            potentially required instruments to complete the hunts. The Company attempts to resell            the hunting packages at a profit or for a mark-up. The Company provides incidental            advisory services to purchasers of hunting trips by helping clients select an            appropriate hunt. The Company believes these advisory services are incidental to the            hunting trip, and has not and does not expect in the future to charge additional fees            for these services. In accordance with Emerging Issues Task Force (“EITF”)            00-21, “Revenue Arrangements with Multiple Deliverables”, the Company has            concluded that the advisory services incidental to the sale of hunting trips do not            have value to the customer on a stand alone basis requiring separate revenue            recognition accounting from the hunting trip revenue. The Company also offers other            consulting services in arrangements separate from hunting trips, which are described            below.

 

Industry practice generally dictates that a hunt is purchased well in            advance of the actual dates of the hunt due to significant amounts of preparation and            logistical planning required prior to the hunt. Revenues for hunt sales are recorded            when a non-refundable cash down payment and an executed sales contract are            received

 

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for the            amount of the cash received. The remainder of the amount due on the sales contract is            recorded as revenue when it is received, which at times may be several months prior to            the dates of the related hunts. The balance due does not bear interest. The Company has            no additional rescission, refund or customer satisfaction requirements. When these            conditions are met the buyer receives all legal rights to the hunt, including the right            of transferability and any changes or modifications are between the buyer and the            outfitter.

 

The Company also from time to time generates revenues from consulting            services offered separately from the sale of hunting trips. This consulting revenue is            generally billed on an agreed-upon hourly rate, and may include the following types of            services:

 

|   | **•** | Providing clients with advice about outfitters and                            hunts |
|--------|------------|-------------------------------------------------------------------------------------|

|   | **•** | Assisting clients with travel arrangements and obtaining                            permits |
|--------|------------|---------------------------------------------------------------------------------------------|

|   | **•** | Accompanying hunters on the hunting                            expedition |
|--------|------------|---------------------------------------------------------------------------|

|   | **•** | Taking video footage of the hunting                            expedition |
|--------|------------|---------------------------------------------------------------------------|

|   | **•** | Providing outfitters with information about improving                            operations |
|--------|------------|---------------------------------------------------------------------------------------------|

 

Revenues from consulting services are recognized when a written            consulting agreement is executed that establishes the amount and scope of service to be            provided, the consulting services have been performed and the Company has no additional            rescission, refund or customer satisfaction requirements, and collectibility of the            amount billed is reasonably assured. When a consulting agreement contains multiple            deliverables, the Company reviews the various services to be provided in accordance            with EITF 00-21 to determine if individual services to be delivered should be            considered a separate unit of accounting for purposes of determining revenue            recognition. The individual services would be considered a separate unit of accounting            if all of the following criteria are met:

 

|   | a. | The delivered item(s) has value to the customer on a                            standalone basis; |
|--------|----|---------------------------------------------------------------------------------------------------|

b.         There is            objective and reliable evidence of the fair value of the undelivered item(s);            and

|   | c. | If the arrangement includes a general right of return                            relative to the delivered item, delivery or performance of the                            undelivered item(s) is considered probable and substantially in the                            control of the Company. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

Because the Company has only a limited operating history, it is unable            to estimate the collectibility of its accounts receivable. Accordingly, the Company is            recognizing its revenue upon receipt of payment rather than at the time of sale. As the            Company develops a history of collections, it will be able to better estimate an            allowance for possible bad debts. As of June 30, 2007, the Company had no accounts            receivable for hunt revenues that did not meet the revenue recognition            requirement.

             

|   | **Recent Accounting Pronouncements** |
|--------|--------------------------------------|

 

We have not adopted any new accounting policies that are not disclosed            in our financial statements, and we believe that we are in compliance with all            applicable accounting pronouncements.

             

**Item            3. Controls and Procedures**

 

**(A) Evaluation of disclosure controls and procedures**

 

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The Company’s Chief Executive Officer (acting also as the            principal financial and accounting officer) has conducted an evaluation of the            Company’s disclosure controls and procedures as of June 30, 2007. Based on his            evaluation, the Company’s Chief Executive Officer has concluded that the            Company’s disclosure controls and procedures were effective as of the end of such            period.

             

**(B) Changes in internal controls**

 

During the period covered by this report, there was no change in the            Company’s internal controls over financial reporting that has materially            affected, or is reasonably likely to materially affect, the Company’s controls            over financial reporting.

 

**PART            II - OTHER INFORMATION**

 

**Item 1. Legal Proceedings**

 

None.

 

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

 

During the three months ended June 30, 2007, we had no unregistered            sales of securities.

 

**Item 3. Defaults Upon Senior Securities**

 

|   | None |
|--------|------|

             

**Item 4. Submission of Matters to a Vote of Security            Holders**

             

No matters were submitted to a vote of security holders during the three            months ended June 30, 2007.

 

**Item 5. Other Information**

             

None.

 

**Item            6. Exhibits**

 

|   | (a) | Exhibits: |
|--------|-----|-----------|

             

|   | 11 | Statement re: computation of per share earnings                            (included in Note 1 to the Condensed Financial Statements). |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------|

 

|   | 31.1 | Certification of principal executive officer and                            principal financial officer pursuant to Rule 13a-14(a) of the                            Securities Exchange Act of 1934, as amended, as adopted pursuant to                            Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

|   | 32.1 | Certification of principal executive officer and                            principal financial officer pursuant to 18 U.S.C. Section 1350, as                            adopted pursuant to Section 906 of the Sarbanes-Oxley Act of                            2002 |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

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**SIGNATURES**

 

In accordance with the requirements of the Exchange Act, the Registrant            caused this report to be signed on its behalf by the undersigned thereunto duly            authorized.

 

WORLD TROPHY OUTFITTERS, INC.

 

|   | By: | /s/ Don Peay |
|--------|-----|--------------|

|   | Don Peay, President and Chief Executive                            Officer |
|--------|----------------------------------------------------------------------------|

|   | (Principal Executive Officer and Principal Financial                            Officer) |
|--------|------------------------------------------------------------------------------------------|

 

|   | Date: | August 14, 2007 |
|--------|-------|-----------------|

 

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