<PAGE>

                       U.S. SECURITIES AND EXCHANGE COMMISSION
                                 WASHINGTON, DC 20549
                                     FORM 10-QSB

    (Mark One)
  / / Quarterly report under Section 13 or 15(d) of the Securities Exchange Act
of 1934
    For the quarterly period ended June 30, 1996 
                                   -------------
  / / Transition report under Section 13 or 15(d) of the Exchange Act
    For the transition period from _______________ to _______________
    Commission file number 0-17772                                              
                          ------------------------------------------------------
                        CORSAIRE SNOWBOARD, INC.
--------------------------------------------------------------------------------
          (Exact Name of Small Business Issuer as Specified in Its Charter)

 State of Delaware                              55-067263
-------------------------------------------    ---------------------------------
         (State or Other Jurisdiction                 (I.R.S. Employer)
       of Incorporation or Organization)             Identification No.)

3838 Camino del Rio North, Suite 333, San Diego, California 92108
--------------------------------------------------------------------------------
                       (Address of Principal Executive Offices)

                                    (619) 280-8000
--------------------------------------------------------------------------------
                   (Issuer's Telephone Number, Including Area Code)

                                         N/A
--------------------------------------------------------------------------------
           (Former Name, Former Address and Former Fiscal Year, if Changed 
                                  Since Last Report)

    Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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         
   ---------    ---------

                       APPLICABLE ONLY TO ISSUERS INVOLVED IN 
                          BANKRUPTCY PROCEEDINGS DURING THE 
                                 PRECEDING FIVE YEARS

    Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court.
Yes           No         
   ---------    ---------

                         APPLICABLE ONLY TO CORPORATE ISSUERS

    State the number of shares outstanding of each of the issuer's classes of 
common equity, as of the latest practicable date: 3,291,859
                                                 -------------------------------

    Traditional Small Business Disclosure Format (check one):
Yes    X      No         
   ---------    ---------

                                                   Total No. Of Pages     16   
                                                                     ----------
                                        - 1 -


<PAGE>

                               CORSAIRE SNOWBOARD, INC.
                                  TABLE OF CONTENTS
                                           
                                     FORM 10-QSB
                                                                           PAGE
                                                                           ----
                                        PART I
                                FINANCIAL INFORMATION
                                           
ITEM 1.  FINANCIAL STATEMENTS.................................................3

         Balance Sheet for the Period Ended
         June 30, 1996 (Unaudited)............................................4

         Statement of Operations for the 
         6 Months Ended June 30, 1996 (Unaudited).............................5

         Statements of Cash Flows for the 6 
         Months Ended June 30, 1996 (Unaudited).............................6-7
         Statements of Changes in Shareholder's 

         Equity for the 6 Months Ended June 30, 1996
         and the Year Ended 1995 (Unaudited)..................................8

         Notes to Financial Statements for 6 Months Ended 
         June 30, 1996 and the Year Ended 1995 ............................9-13

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR
         PLAN OF OPERATION...................................................14

                                       PART II
                                  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS...................................................15

ITEM 2.  CHANGES IN SECURITIES...............................................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 AND REPORTS ON FORM 8-K....................................15

                                        - 2 -

<PAGE>

                                       PART  I
                                           
                                FINANCIAL INFORMATION
                                           

ITEM 1.  FINANCIAL STATEMENTS.

              The accompanying unaudited financial statements have been 
         prepared in accordance with the instructions to Form 10-QSB in 
         conformity with generally accepted accounting principles and include 
         all information and footnotes necessary for a complete presentation 
         of financial position, results of operations, cash flows and 
         stockholders' equity.

              Except as disclosed herein, there has been no material change 
         in the information disclosed in the notes to the financial 
         statements included in the Company's annual report in Form 10-KSB 
         for the year ended December 31, 1995.

              In the opinion of Management, all adjustments considered 
         necessary for a fair presentation of the results of operations and 
         financial position have been included and all such adjustments are 
         of a normal recurring ature.

              Operating results for the six months ended June 30, 1996 are 
         not necessarily indicative of the results that can be expected for 
         the year ending December 31, 1996.

                                        - 3 -

<PAGE>

                               Corsaire Snowboard, Inc.
                        (Formerly Known as Acunet Corporation)
                                    Balance Sheet
                                    June 30, 1996
                                     (Unaudited)
                                           
                                           
                                        ASSETS
                                           
                                           
                                           June 30, 1996      December 31, 1995
                                           -------------      -----------------
Current Assets

 Cash in Bank                              $         178      $         178

 Refundable deposit receivable                     5,000              5,000
                                           --------------     --------------

                                           $       5,178      $       5,178
                                           --------------     --------------
                                           --------------     --------------

                    LIABILITIES AND SHAREHOLDERS' EQUITY


Current Liabilities

 Accounts payable                          $      64,411      $     137,062
                                           --------------     --------------

    Total current liabilites                      64,411            137,062
                                           --------------     --------------

Stockholders' Equity

 Common Stock, $.001 par value;
 25,000,000 authorized; 3,291,859 
 and 3,189,900 outstanding in 1996 and
 1995, respectively                                3,292              3,190

Paid in capital                                2,495,423          2,267,359

Prepaid stock-based officer compensation        (131,250)          (131,250)

Accumulated deficit                           (2,426,698)        (2,271,183)
                                           --------------     --------------

  Total shareholders' equity                     (59,233)          (131,884)
                                           --------------     --------------
  Total  liabilities and 
    shareholders' equity                   $       5,178      $       5,178
                                           --------------     --------------
                                           --------------     --------------


                                         -4-

<PAGE>

                               Corsaire Snowboard, Inc.
                        (Formerly Known as Acunet Corporation)
                               Statement of Operations
                         For the 6 Months Ended June 30, 1996
                                     (Unaudited)

                                           
                                       6 months ended      For the Year
                                        June 30, 1996       Ended 1995 
                                       ---------------     -------------

Revenues                               $            0      $          0
                                       ---------------     -------------

Expenses:

  Officer's compensation                            0            93,750

  Consulting services                          95,000         1,929,250

  Legal fees and expenses                      60,515           244,460

  Other general and administrative
    expenses                                        0             3,723
                                       ---------------     -------------

      Total expenses                          155,515         2,271,183
                                       ---------------     -------------

  Loss before provision for taxes            (155,515)       (2,271,183)

Provision for income taxes                          0                 0
                                       ---------------     -------------

Net loss                               $     (155,515)     $ (2,271,183)
                                       ---------------     -------------
                                       ---------------     -------------


                                         -5-

<PAGE>

                               Corsaire Snowboard, Inc.
                        (Formerly Known as Acunet Corporation)
                               Statements of Cash Flows
                         For the 6 Months Ended June 30, 1996
                                     (Unaudited)
                                           
                                           
                                                  6 months ended   For the Year 
                                                   June 30, 1996    Ended 1995 
                                                  --------------   ------------

Cash flow used by operating activities:

  Net loss                                        $     (155,515)  $ (2,271,183)

  Adjustments to reconcile net loss to 
  net cash used by operating activities:

    Issuance of common stock for 
    consulting and legal services and
    satisfaction of amounts due officer                        0      2,138,779

Changes in assets and liabilities:

    Decrease in accounts payable                         (72,651)       137,062

    Increase in organization costs                             0            520
                                                  ---------------  -------------

    Cash provided by operations                         (228,166)         5,178
                                                  ---------------  -------------

Cash flows used by investing activities:

    Increase in refundable deposit                             0         (5,000)
                                                  ---------------  -------------

    Cash used by investing activities                          0         (5,000)
                                                  ---------------  -------------

Cash flows provided from financing activities:

    Proceeds from common stock                               145              0

    Proceeds from paid in capital                        228,114              0

    Used for common stock                                    (43)             0


                                         -6-

<PAGE>

                                           
                               Corsaire Snowboard, Inc.
                        (Formerly Known as Acunet Corporation)
                           Statement of Cash Flows (cont.)
                         For the 6 Months Ended June 30, 1996
                                     (Unaudited)
                                           
                                           

   Used for paid in capital              (50)                     0
                                   ----------             ----------

Net cash provided by financing       228,166                      0
                                   ----------             ----------


   Increase in cash                        0                    178

Cash - beginning of year                 178                      0
                                   ----------             ----------

Cash - end of year                 $     178              $     178
                                   ----------             ----------
                                   ----------             ----------

                                         -7-

<PAGE>

                               Corsaire Snowboard, Inc.
                        (Formerly Known as Acunet Corporation)
                    Statements of Changes in Shareholder's Equity
                      For the 6 Months Ended June 30, 1996 and 
                                 the Year Ended 1995
                                     (Unaudited)

<TABLE>
<CAPTION>

                                               COMMON STOCK       
                                          ----------------------

                                          Number of       Par       Paid in     Accumulated
                                           Shares        Value      Capital       Deficit
                                          ----------   ---------   ----------  ------------

<S>                                       <C>          <C>         <C>         <C>
Balance, December 31, 1995                 3,189,900       3,190    2,267,359   (2,271,183)
                                          ----------   ---------   ----------  ------------

 March, 1996 Stockholder paid
  accounts payable and the debt of
  the stockholder was forgiven                     0           0       11,884            0

 Net loss for March, 1996                          0           0            0      (38,437)
                                          ----------   ---------   ----------  ------------

Balance, March 31, 1996                    3,189,900   $   3,190   $2,279,423  $(2,309,620)
                                          ----------   ---------   ----------  ------------

 April, 1996 - issued for services           145,000         145      216,000            0

 April, 1996 - cancelled shares              (43,041)        (43)          43            0

 Net loss for June                                 0           0            0     (117,078)
                                          ----------   ---------   ----------  ------------

Balance, June 30, 1996                     3,291,859   $   3,292   $2,495,423  $(2,426,698)
                                          ----------   ---------   ----------  ------------
                                          ----------   ---------   ----------  ------------

</TABLE>

                                         -8-


<PAGE>

                               Corsaire Snowboard, Inc.
                        (Formerly Known as Acunet Corporation)
                            Notes to Financial Statements
                      For the 6 Months Ended June 30, 1996 and 
                                 the Year Ended 1995


1.  COMPANY BACKGROUND

    Corsaire Snowboard, Inc. (the Company or Corsaire) was incorporated in
    Delaware in    1987 under the name Acunet Corporation.  It became inactive
    in 1990 and there are no      corporate records or minutes available to
    document the activities of the corporation until  January 1994.

    In January 1994, the Company was reorganized, and as part of the
    reorganization, the      Board of Directors appointed Mr. Paul L. Parshall,
    President and Chief Executive Officer   who in concert with his Company,
    the Worthington Company, reestablished good standing with the State of
    Delaware, and brought current the filings required by the
    Securities and Exchange Commission.  The Company is publicly traded and its
    shares are quoted in the      over-the-counter (bulletin board) market.

    In March 1995, the Company elected a new President and began a review of
    potential      acquisitions.  In contemplation of a likely merger, the
    Company changed its name to   Corsaire Snowboard, Inc.  After a due
    diligence review, the Company decided against the merger but retained the
    name.

    The Company's principal business purpose is the identification and
    evaluation of       prospective merger and acquisition opportunities.

2.  SIGNIFICANT ACCOUNTING POLICIES

    CURRENCY TRANSLATION

    The accompanying financial statements are expressed in U.S. dollars.  The
    Company   maintains an office and bank account in Vancouver, British
    Columbia, Canada.        Expenditures and obligations in Canadian currency
    have been translated at the exchange    rate prevailing when they were
    incurred.  Assets and liabilities at December 31, 1995,     where
    applicable, have been translated at the year-end exchange rate.  There were
    no   significant exchange or translation gains or losses.


                                         -9-

<PAGE>

                                           
2.  SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

    VALUATION OF SHARES ISSUED FOR SERVICES

    The Company accounts for stock-based compensation in accordance with SFAS
    No. 123,  ACCOUNTING FOR STOCK-BASED COMPENSATION.

    INCOME TAXES

    No provision for income taxes has been recorded since the Company has 
    operated at a  loss.  At December 31, 1995 and June 30, 1996 the Company 
    has a federal net operating loss carryover of $2,177,433 and $155,515, 
    respectively,  which expires in 2010 and 2011, respectively.  Any benefit 
    which may arise from the utilization of this carryover in future years 
    has not been recorded in the financial statements since its realization 
    is dependent on future profitable operations, which cannot be determined 
    at this time.

    SHARE AND PER SHARE DATA

    Net loss per share is determined by dividing Net loss by the weighted
    average number of   common shares outstanding during the year.  See Notes
    3, 4 and 7 regarding dilution and  potential dilution of common shares.

    CURRENT OPERATING LOSS

    The accompanying financial statements have been prepared in conformity with
    generally      accepted accounting principles, which contemplates
    confirmation of the Company as a   going concern.  However, the Company has
    sustained substantial operating losses in 1995.
    
    In view of these matters, the ability of the Company to continue as a 
    going concern is dependent upon the Company's ability to raise capital 
    and the success of its future operations.  Management believes that 
    actions presently being taken to raise capital to fund the Company's 
    operating and financial requirements and Management's commitment to fund 
    future operations if need be (Note 3), provide the opportunity for the 
    Company to continue as a going concern.

3.  RELATED PARTY INFORMATION

    STOCK ISSUANCE

    In January 1994, the Worthington Company received 289,867 (adjusted for 
    reverse stock split, Note 2) shares of common stock in exchange for 
    payments of filing fees for the Company.

                                         -10-

<PAGE>
                                           
3.  RELATED PARTY INFORMATION (CONTINUED)

    CONTRACT WITH COMPANY PRESIDENT

    In March 1995, the Company entered into a two-year agreement with its
    President.  The agreement provides that he will assist the Company in the
    identification and evaluation of prospective merger and acquisition
    opportunities, and arrange for the financing of such acquisitions and/or
    merger or acquisition is consummated.

    In accordance with the agreement, the Company immediately issued 2,250,000
    shares of Corsaire common stock to the President for work to be
    performed in connection with the   acquisition of two major companies. 
    Additionally, 1,000,000 shares of common stock will be issued for each
    additional acquisition up to a maximum total issuance of 4,250,000 shares
    of common stock.

    The initial 2,250,000 shares issued to the President are considered by the
    Board of  Directors to be compensation for the period through May 30, 1997
    and have been  prorated and charged to expense accordingly.  These shares
    were issued pursuant to  Regulation S of the Securities and Exchange
    Commission (pertaining to offers and sales made outside the United States
    by non United States investors) which requires a holding period of forty
    days before they may be traded.  These shares have been valued at $.10 per
    share, the market value at the contract date.  Additional share issuances
    pursuant to this agreement will be accounted for at market value at the
    date of the related acquisition, as a cost of the acquisition.

4.  CONSULTING AND LEGAL SERVICES

    In April, 1996, the Company issued common stock, which was registered with
    the Securities and Exchange Commission on Form S-8 to various individuals,
    including consultants and the company's General Counsel for legal services. 
    These shares have been valued at the bid price at date of issuance.

                                            CONSULTING               LEGAL FEES
                                             SERVICES                AND
                                            ----------               ---
EXPENSES
--------

    145,000 shares valued at fair
      market value at date of issue          $  95,000               $   50,000

    Paid or accrued to others                        0                        0
                                            ----------               ----------
                                            $   95,000               $   50,000
                                            ----------               ----------

                                         -11-

<PAGE>

5.  PROVISION FOR INCOME TAXES

    Deferred tax assets are comprised of the following:

                                             JUNE 30,      DECEMBER 31,
                                               1996            1995       
                                            -----------    -----------
    Net operating loss carry forwards       $   52,875     $  740,327
    Deferred tax asset valuation allowance     (52,875)      (740,327)
                                            -----------    -----------
    Net deferred tax assets                 $        0     $        0 
                                            -----------    -----------

    The deferred tax asset has been fully reserved by the valuation allowance
    since its realization is dependent on future profitable operations, the
    probability of which cannot  be determined at this time.

    Reconciliation of the federal statutory rate to the Company's effective tax
    rate is as
    follows:

                                               JUNE 30,         DECEMBER 31,
                                                1996               1995
                                              ----------        ------------

    US Federal Statutory rate of Tax            34.00%              34.00%

    Operating losses with no current tax
    benefit                                     (2.00%)             (2.00%)
                                              ----------        ------------

    Effective tax rate                          32.00%              32.00%
                                              ----------        ------------

    The Company has available at December 31, 1995 and June 30, 1996, for 
    Federal income tax purposes approximately $2,177,433 and $155,515, 
    respectively, of unused operating loss carry forwards that may be applied 
    against future taxable income and which expire in 2010 and 2011, 
    respectively.

                                         -12-

<PAGE>

6.  SUBSEQUENT EVENTS

    On August 19, 1996, the Company entered into an agreement which was amended
    October 9, 1996, to acquire 75% (75 shares) of the outstanding common
    shares of Mutual Exchange Canada, Inc. (MEC).  The terms of the agreement
    call for a non-refundable deposit of $50,000 U.S. upon execution of the
    agreement.  An additional payment of $450,000 U.S. will be made not later
    than 30 days after the completion of the merger.  Additional terms state
    that within 30 days of the completion  date of the merger, Corsaire must
    obtain $500,000 U.S. financing through a private placement of Regulations S
    shares in the Capital of Corsaire at a price of not less than $2.00 U.S.
    per post split stock.

    As of November 14, 1996, Mutual Exchange Canada, Inc. Has notified the
    Company that it believes the agreement is no longer valid, due to
    nonperformance of certain terms and conditions contained in the agreement. 
    The position of legal counsel and the Company is  that there is no basis
    for this assertion and the agreement is still valid.

    Effective as of April 24, 1996, the Company entered into a settlement and 
    escrow agreement with a stockholder, whereby 43,041 of his shares of 
    common stock were canceled and the balance of 35,000 shares of common 
    stock were transferred to an escrow account.  In accordance with the 
    escrow instructions, beginning May 15, 1996 a maximum of 1,500 shares of 
    common stock per month will be released from escrow for sale by the 
    stockholder.

                                        -13-
                                          
                                          
<PAGE>

                                           
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
    
              Corsaire Snowboard, Inc. (the "Company") is an inactive company 
         and has limited operations.  The Company expended $2,271,183 in the 
         year ended December 31, 1995, compared with no expenditures for the 
         same period in 1994.  The increase is attributed to consulting 
         expenses in connection with the seeking of merger partners.

              An additional $155,515 was expended for the period ended June 
         30, 1996 which was also attributable to legal and consulting 
         expenses in connection with the seeking of merger partners.

              Management has been seeking opportunities to acquire operating 
         entities, which in the opinion of Management will  provide profitable 
         operations to the Registrant.

              As more specifically described in Note 4 to the Company's 
         financial statements, the Company issued in April, 1996 a total of 
         145,000 shares of common stock pursuant to a S-8 Registration 
         Statement for various consulting services and legal services.
     
              It is anticipated that the investigation of specific business 
         opportunities and the negotiation, drafting and execution of 
         relevant agreements, disclosure documents and other instruments will 
         require substantial management time and attention and substantial 
         costs for accountants, attorneys, and others.  If a decision is made 
         not to participate in a specific business opportunity, the costs 
         therefore incurred in the related investigation would not be 
         recoverable. Furthermore, even if an agreement is reached for the 
         participation in a specific business opportunity, the failure to 
         consummate that transaction may result in the loss to the Company of 
         the related costs incurred.

              Management is not able to determine the time nor the resources 
         that will be necessary to complete an acquisition such as is 
         contemplated. There is no assurance that the Company will be able to 
         acquire an interest in any such businesses, products or 
         opportunities that may exist or that any activity of the Company, 
         even after any acquisition, will be profitable.

                                        - 14 -

<PAGE>

                                    PART II
                                           
                               OTHER INFORMATION
                                           

ITEM 1.  LEGAL PROCEEDINGS

         None

ITEM 2.  CHANGES IN SECURITIES

         None

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         None
ITEM 4.  SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS

         None

ITEM 5.  OTHER INFORMATION

         None

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a)  Exhibits: None

         (b)  Reports on Form 8-K: None

                                        - 15 -

<PAGE>


                                      SIGNATURES

    Pursuant to the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned thereunto duly
authorized.

                                          CORSAIRE SNOWBOARD, INC.



DATED: February 26, 1997               BY: /s/ RENE M. HAMOUTH
                                          --------------------------------
                                          RENE M. HAMOUTH
                                          President and Chief
                                          Financial Officer


                                       - 16 -