<PAGE>
================================================================================

                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

                                   FORM 10-Q
               Quarterly Report Pursuant to Section 13 or 15(d)
                    of the Securities Exchange Act of 1934

 For the quarterly period ended March 31, 2000     Commission File No. 001-14509

                               EASYRIDERS, INC.
            (Exact name of registrant as specified in its charter)


            Delaware                                                  33-0811505
(State or other jurisdiction of                                (I.R.S.  Employer
incorporation or organization)                            Identification Number)



              28210 Dorothy Drive, Agoura Hills, California 91301
              (Address of principal executive offices) (Zip Code)

       Registrant's telephone number, including area code: (818) 889-8740

          Securities registered pursuant to Section 12(b) of the Act:
                    Common Stock, par value $.001 per share

          Securities registered pursuant to Section 12(g) of the Act:
                                 Not Applicable

  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
    ---            ---


  There were 29,058,544 shares of outstanding Common Stock of the Registrant as
of May 10, 2000.
<PAGE>

PART I -- FINANCIAL INFORMATION
-------------------------------

Item 1.  Financial Statements

EASYRIDERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                       March 31,            December 31,
                                                                         2000                  1999
                                                                     -----------------------------------
                                                                     (unaudited)
<S>                                                                  <C>                    <C>
ASSETS

CURRENT ASSETS:
Cash and cash equivalents                                            $   526,988            $   734,856
Accounts receivable, less allowance for doubtful accounts
  of $438,010 (2000) and $645,212 (1999)                               3,288,209              3,307,501
Inventories                                                            2,832,073              2,994,832
Prepaid publication costs                                                634,046                563,577
Prepaid expenses and other                                             1,021,801                712,935
Receivable from shareholder                                              390,436                395,010
                                                                     -----------            -----------

    Total current assets                                               8,693,553              8,708,711

PROPERTY AND EQUIPMENT, net                                            5,715,198              5,314,321

GOODWILL, net of accumulated amortization
  of $3,365,659 (2000) and $2,810,936 (1999)                          59,801,777             60,356,501

TRADEMARKS, net of accumulated amortization
  of $206,181 (2000) and $172,253 (1999)                                 618,752                652,680

OTHER ASSETS                                                             707,171                713,695
                                                                     -----------            -----------

                                                                     $75,536,451            $75,745,908
                                                                     ===========            ===========
</TABLE>

         See accompanying notes to consolidated financial statements.

                                       1
<PAGE>

EASYRIDERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Continued)

<TABLE>
<CAPTION>
                                                                                       March 31,             December 31,
                                                                                         2000                   1999
                                                                                   ---------------------------------------
                                                                                      (unaudited)
<S>                                                                                   <C>                    <C>
LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Accounts payable                                                                      $  7,349,019           $  7,683,114
Accrued payroll and payroll related expenses                                               898,568                951,115
Accrued interest payable                                                                 1,540,721              1,091,129
Other current liabilities                                                                1,364,784              1,669,089
Income taxes payable                                                                        10,000                  8,800
Current portion of deferred subscription and advertising income                          3,539,355              3,464,959
Current portion of convertible debentures                                                  316,667                316,667
Current portion of long-term debt                                                        1,741,969              1,874,578
                                                                                      ------------           ------------

    Total current liabilities                                                           16,761,083             17,059,451

CONVERTIBLE DEBENTURES, related party                                                    1,000,000              1,000,000

NOTE PAYABLE TO STOCKHOLDER                                                             11,575,000             11,575,000

LONG-TERM DEBT, net of current portion and debt discount, including
 related party indebtedness of $440,540 (2000) and $489,541 (1999).                     24,686,032             24,549,917

OTHER LONG TERM LIABILITIES, including deferred subscription
  revenues in $1,535,654 (2000) and $1,509,003 (1999)                                    2,244,621              1,939,800

STOCKHOLDERS' EQUITY:
Preferred stock, par value $.001 per share; 10,000,000 shares
  authorized, none outstanding
Common stock, par value $.001 per share; 50,000,000 shares
  authorized, 24,484,964 (2000) and 23,056,751 (1999) outstanding                           24,485                 23,056
Additional paid in capital                                                              60,012,811             58,983,147
Receivable from the sale of stock                                                       (7,300,000)            (7,300,000)
Accumulated deficit                                                                    (33,467,581)           (32,084,463)
                                                                                      ------------           ------------

    Total stockholders' equity                                                          19,269,715             19,621,740
                                                                                      ------------           ------------

                                                                                      $ 75,536,451           $ 75,745,908
                                                                                      ============           ============
</TABLE>

          See accompanying notes to consolidated financial statements.

                                       2
<PAGE>

EASYRIDERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                                                       For the Three Months Ended
                                                                                                 March 31,
                                                                                           2000            1999
                                                                                      -----------------------------
                                                                                                (unaudited)
<S>                                                                                   <C>               <C>
SALES                                                                                   $11,751,807     $11,031,712

COST OF SALES                                                                             8,845,812       8,585,173
                                                                                        -----------     -----------

GROSS MARGIN                                                                              2,905,995       2,446,539

EXPENSES:
Selling, general, and administrative                                                      2,266,127       2,772,112
Depreciation and amortization                                                               829,536         769,149
Stock issuance expense                                                                      173,242
                                                                                        -----------     -----------

  Total expenses                                                                          3,268,905       3,541,261
                                                                                        -----------     -----------

LOSS FROM OPERATIONS                                                                       (362,910)     (1,094,722)

OTHER INCOME                                                                                 70,148         167,372

INTEREST EXPENSE                                                                         (1,082,505)       (910,994)
                                                                                        -----------     -----------

LOSS BEFORE PROVISION FOR INCOME TAXES                                                   (1,375,267)     (1,838,344)

PROVISION FOR INCOME TAXES                                                                    7,851           2,075
                                                                                        -----------     -----------

NET LOSS                                                                                $(1,383,118)    $(1,840,419)
                                                                                        ===========     ===========

NET LOSS PER SHARE - BASIC AND DILUTED                                                  $     (0.06)    $     (0.10)
                                                                                        ===========     ===========

WEIGHTED AVERAGE NUMBER OF SHARES
   OUTSTANDING - BASIC AND DILUTED                                                       23,698,835      19,295,375
                                                                                        ===========     ===========
</TABLE>

          See accompanying notes to consolidated financial statements.

                                       3
<PAGE>

EASYRIDERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                            For the Three Months Ended
                                                                                                     March 31,
                                                                                            2000                  1999
                                                                                       -----------------------------------
                                                                                                    (unaudited)
<S>                                                                                    <C>                    <C>
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net loss                                                                                $(1,383,118)          $(1,840,419)
Adjustments to reconcile net loss to net cash provided by
  (used in) operating activities:
  Common stock issuance expense                                                             173,242
  Common stock issued for interest                                                           19,726
  Depreciation and amortization                                                             829,536               769,149
  Loss on sale of fixed assets                                                               55,072                25,357
  Amortization of debt issuance costs                                                        78,694                78,694
  Increase (decrease) in cash resulting from changes in operating
    accounts, net of acquisitions:
    Current assets                                                                         (520,072)             (614,928)
    Other assets                                                                           (240,759)              (14,902)
    Current liabilities                                                                      (9,817)            1,506,476
    Other long-term liabilities                                                             304,821               556,164
                                                                                        -----------           -----------

      Net cash provided by (used in) operating activities                                  (692,675)              465,591

CASH FLOWS USED IN INVESTING ACTIVITIES:
Proceeds from sale of fixed assets                                                           10,000
Purchase of fixed assets                                                                    (28,699)             (274,924)
                                                                                        -----------           -----------

      Net cash used in investing activities                                                 (18,699)             (274,924)

CASH FLOWS PROVIDED BY FINANCING ACTIVITIES:
Issuance of long-term debt                                                                   82,200               704,612
Payments on debt and convertible debentures                                                 (78,694)             (611,792)
Common stock issued for cash                                                                500,000
                                                                                        -----------           -----------

      Net cash provided by financing activities                                             503,506                92,820
                                                                                        -----------           -----------

NET INCREASE (DECREASE) IN CASH AND
  CASH EQUIVALENTS                                                                      $  (207,868)          $   283,487

CASH AND CASH EQUIVALENTS, beginning of year                                                734,856               278,035
                                                                                        -----------           -----------

CASH AND CASH EQUIVALENTS, end of year                                                  $   526,988           $   561,522
                                                                                        ===========           ===========

SUPPLEMENTAL CASH FLOW INFORMATION -
  Cash paid for interest                                                                $   533,211           $ 1,083,101
                                                                                        ===========           ===========

NONCASH FINANCING ACTIVITIES:
Common stock issued in settlement of litigation                                         $   325,000
                                                                                        ===========
</TABLE>

          See accompanying notes to consolidated financial statements

                                       4
<PAGE>

EASYRIDERS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (unaudited)
--------------------------------------------------------------------------------

1.  GENERAL BASIS OF PRESENTATION

    Easyriders, Inc. (Easyriders or the Company) was incorporated in the State
    of Delaware on May 13, 1998, and for financial reporting purposes is the
    successor to Newriders, Inc.  On September 23, 1998, Easyriders, Inc.
    consummated a series of transactions (collectively, the Reorganization),
    including the following:  (i) the merger of a subsidiary of Easyriders with
    and into Newriders, Inc. (Newriders) (the Merger) upon which the
    shareholders of Newriders exchanged their stock on a 2-for-1 basis for
    Easyriders, Inc. common stock; (ii) the acquisition by Easyriders of all of
    the outstanding common stock of Paisano Publications, Inc. (Paisano
    Publications), a California corporation, and certain affiliated corporations
    (collectively, the Paisano Companies); and (iii) the acquisition by
    Easyriders of all of the outstanding membership interests of M&B
    Restaurants, L.C. (El Paso), a Texas limited liability company.

    As a result of the merger, the Newriders common stock was exchanged for
    Easyriders common stock on the basis of one share of Easyriders common stock
    for each two shares of Newriders common stock, and the stockholders of
    Newriders immediately prior to the merger became stockholders of Easyriders.
    The merger was accounted for as a combination of entities under common
    control, similar to a pooling of interest.  Therefore, the historical
    financial statements represent the combined financial statements of
    Easyriders and Newriders.  The acquisitions of the Paisano Companies and El
    Paso were accounted for as a purchase.

    The Paisano Companies consist of Paisano Publications; Easyriders of
    Columbus, Inc., an Ohio corporation; Easyriders Franchising, Inc., a
    California corporation; Teresi, Inc. (DBA Easyriders Events, Inc.), a
    California corporation; Bros Club, Inc., a California corporation and
    Associated Rodeo Riders on Wheels, a California corporation; Paisano
    Publications publishes 11 special-interest magazines directed to motorcycle,
    hot-rod, and tattoo enthusiasts.  Other Paisano Companies market a line of
    apparel and other products designed to appeal to motorcycle, hot-rod, and
    tattoo enthusiasts.  Through the end of 1999 Easyriders Franchising had
    established franchise stores that sell Easyriders apparel, customized new
    and used American-made motorcycles, and motorcycle accessories.
    Subsequently, all franchisees signed agreements converting their franchise
    arrangement to a licensing arrangement and the operations of Easyriders
    Franchising were assumed by Easyriders Licensing, Inc., a California
    corporation, and a wholly-owned subsidiary of Newriders.  Currently, there
    are 34 licensed stores.

    El Paso is a Texas limited liability company, which owns and operates four
    barbecue and smoked meat restaurants, three of which are located in Arizona
    and one of which is located in Oklahoma.  The restaurants are operated under
    the name "El Paso Bar-B-Que."

    Easyriders currently derives substantially all of its revenues from the
    operations of Paisano Publications and El Paso.

                                       5
<PAGE>

EASYRIDERS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (unaudited) (Continued)
--------------------------------------------------------------------------------

    Basis of presentation - The accompanying unaudited interim consolidated
    financial statements of Easyriders, Inc. for the three months ended March
    31, 2000 and 1999, respectively, reflect all adjustments (consisting of
    normal recurring accruals) which, in the opinion of management, are
    necessary for a fair presentation of the results for the interim periods
    presented.  These financial statements have been prepared in accordance with
    the instructions to Form 10-Q and Article 10 of Regulation S-X.
    Accordingly, they do not include all of the information and footnotes
    required by generally accepted accounting principles for complete financial
    statements.

    These financial statements should be read in conjunction with the Company's
    annual audited financial statements for the year ended December 31, 1999.

    Operating results for the three month period ended March 31, 2000 are not
    necessarily indicative of the results that may be expected for the full year
    ending December 31, 2000.

    Reclassifications - Certain reclassifications have been made to the 1999
    financial statements in order to conform them to the 2000 presentation.

2.  LONG-TERM DEBT

    Paisano Debt  - As of January 12, 2000, the Arbitration Action which was
    commenced in January, 1998 by Steel Horses, Inc. dba Easyriders of Chicago
    ("Steel Horses") against Paisano Publications, Easyriders Franchising, Inc.
    ("EFI") and certain officers of the Company, arising out of the Franchise
    Agreement entered into in 1994 between Steel Horses and EFI, was settled and
    dismissed with finality pursuant to a settlement agreement executed as of
    that date by all parties (the "Settlement Agreement").  Pursuant to the
    Settlement Agreement, Paisano Publications agreed to pay Steel Horses and
    its founders an agreed upon sum over a period of 2 years. The debt was
    accrued as of December 31, 1999, as the amount of the loss was estimable and
    the loss was probable as of that date.

3.  STOCKHOLDERS' EQUITY

    Related-Party Stock Purchases - On February 9, 2000, the Company sold to two
    directors of the Company 493,827 shares each of common stock of the Company
    for the sum of $250,000 each.  The number of shares issued was calculated as
    75% of the average closing price of the common stock, with average closing
    price being defined as the average of the last recorded sale price of the
    common stock on the ten consecutive trading days ending on and including
    February 2, 2000. In conjunction with this stock issuance at a discount, the
    Company recorded $166,667 of stock issuance expense.

    Common Stock issued to settle litigation - In March 2000, the Company issued
    400,000 shares of the common stock of the Company in settlement of a dispute
    with an ex-franchisee. Settlement expense was recognized equal to the fair
    market value of such shares on the date of issuance.

                                       6
<PAGE>

EASYRIDERS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (unaudited) (Continued)
--------------------------------------------------------------------------------

    Common Stock issued for services - During March 2000, the Company issued
    10,500 shares of Easyriders, Inc. stock to two consultants of Paisano
    Publications as compensation for services performed.  The fair value of the
    stock, $13,125, was recorded as consulting expense.

    Common Stock issued for interest - On March 1, 2000, the Company issued
    30,059 shares of Easyriders, Inc. stock to a related party in payment of
    accrued interest on convertible debentures in the amount of $19,726. The
    number of shares issued was calculated as 75% of the average closing price
    of the common stock for the five days preceding the issuance. In conjunction
    with this stock issuance at a discount, the Company recorded $6,575 of stock
    issuance expense.

    Stock Option Grants - During the three months ended March 31, 2000, the
    Board of Directors of the Company authorized the granting of 285,000 options
    to employees, consultants and directors of the company, all of which were
    granted under the Company's 1998 Executive Incentive Compensation Plan.
    SFAS No. 123, Accounting for Stock-Based Compensation, encourages but does
    not require Company to record compensation cost for employee stock option
    grants.  The Company has chosen to continue to account for employee option
    grants using Accounting Principles Board Opinion No. 25.  No compensation
    expense has been recognized for employee stock option grants.

4.  BUSINESS SEGMENTS

    Information by Operating Segment - Operating segments are defined as
    components of an enterprise for which separate financial information is
    available that is evaluated regularly by the chief operating decision-maker,
    or decision-making group, in deciding how to allocate resources and in
    assessing performance.  Easyriders, Inc. chief operating decision-making
    group is comprised of the chief executive officer and the officers who
    report to him directly.

    Easyriders Inc. has five reportable segments: publishing, goods and
    services, food service, franchising/licensing (all franchisees had converted
    to licensees for the quarter ended March 31, 2000), and other events and
    operations.  The publishing segment includes magazine and catalog publishing
    and other operations.  The trade goods and services segment distributes
    motorcycle apparel and other related goods to both intermediate and end-
    users and offers motorcycle repair and services through a Company owned
    store.  The food service segment includes the operations of El Paso and
    Newriders.  The franchising/licensing segment includes the
    franchising/licensing of Easyriders motorcycle stores for distribution of
    equipment and apparel.  The other events and operations segment includes the
    coordination and sponsorship of motorcycle related events and operations.

    Easyriders, Inc. evaluates performance based on profit or loss from
    operations before income taxes, not including nonrecurring gains and losses
    and foreign exchange gains and losses.  (The Company utilizes the other
    events and operations segment as a venue for increased exposure for
    publication sales.)  The accounting policies of the operating segments are
    the same as those described in the summary of significant accounting
    policies.  The financial results for the five operating segments of
    Easyriders, Inc. have been prepared on a basis which is consistent with the

                                       7
<PAGE>

EASYRIDERS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (unaudited) (Continued)
--------------------------------------------------------------------------------

    manner in which Easyriders, Inc. management internally disaggregates
    financial information for the purposes of assisting in making internal
    operating decisions.  In this regard, certain common expenses have been
    allocated among segments less precisely than would be required for stand
    alone financial information prepared in accordance with generally accepted
    accounting principles.  Revenue attributed to geographic areas is based on
    the location of the customer.

<TABLE>
<CAPTION>
                                          Goods and        Food        Franchising/       Other
                            Publishing     services       service       Licensing      operations       Totals
<S>                         <C>           <C>            <C>           <C>             <C>           <C>
Quarter ended March 31, 1999:

Sales external customers    $5,620,709    $1,442,912     $2,863,334      $  48,137     $1,056,620    $11,031,712
Income (loss) from
  operations                   117,268      (442,676)       206,510       (491,925)       114,596       (496,227)
Depreciation and
  amortization                  79,951        74,591         45,081          2,119         11,463        213,205

Quarter ended March 31, 2000:

Sales external customers    $5,487,497    $1,432,451     $3,346,368      $       0     $1,485,491    $11,751,807
Income (loss) from
  operations                    91,912      (306,359)       239,396       (135,925)       458,733        347,757
Segment assets               7,559,002     1,215,341      5,926,059          6,788        110,060     14,817,250
Capital expenditures            20,710                        7,989                                       28,699
Depreciation and
  amortization                  88,386        12,087        151,510          2,114         20,715        274,812
</TABLE>

    A reconciliation of the totals reported for the operating segments to the
    applicable line items in the consolidated financial statements is as
    follows:

<TABLE>
<CAPTION>
                                                                  QE 3/31/00          QE 3/31/99
                                                                ----------------------------------
<S>                                                             <C>                 <C>
Loss from operations included in segment disclosure             $    347,757        $    (496,227)
Unallocated, selling, general, and administrative                   (710,667)            (598,495)
                                                                ------------        -------------
Loss from operations                                            $   (362,910)       $  (1,094,722)
                                                                ============        =============

<CAPTION>
                                                                  QE 3/31/00          QE 3/31/99
                                                                ----------------------------------
<S>                                                             <C>                   <C>
Depreciation and amortization included in segment disclosure    $    274,812          $   213,205
Amortization of goodwill                                             554,724              555,944
                                                                ------------          -----------
Depreciation and amortization                                   $    829,536          $   769,149
                                                                ============          ===========
</TABLE>


                                       8
<PAGE>

EASYRIDERS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (unaudited) (Continued)
--------------------------------------------------------------------------------

<TABLE>
    <S>                                            <C>
    Segment assets                                 $14,817,250
    Cash and cash equivalents                          526,988
    Receivable from shareholder                        390,436
    Goodwill                                        59,801,777
                                                   -----------

    Total assets                                   $75,536,451
                                                   ===========
</TABLE>

    Revenues concerning principal geographic areas is as follows based on
    customer location:

<TABLE>
<CAPTION>
            USA         Canada      Germany       UK       Australia     Other        Total
<S>      <C>            <C>         <C>         <C>         <C>         <C>         <C>
2000     $10,711,270    $264,355    $135,760    $125,186    $106,117    $409,119    $11,751,807
1999     $10,006,405    $247,194    $140,533    $146,062    $109,824    $381,694    $11,031,712
</TABLE>

   The Company's foreign operations consist primarily of international
   newsstand sales and mail-order product sales.  No one country makes up more
   than 10% of international sales.  The Company does not have any identifiable
   assets attributable to these foreign activities and does not separately
   identify any expenses related specifically to foreign activities.
   Therefore, income before taxes and net income associated with foreign
   activities is not presented.

5. SUBSEQUENT EVENTS

   Debt Covenant Amendment - At the time of the Reorganization, Easyriders and
   Paisano Publications entered into a Note and Warrant Purchase Agreement (the
   "Credit Agreement") with Nomura Holding America Inc. ("Nomura" or "Lender"),
   pursuant to which Nomura agreed, subject to the satisfaction of certain terms
   and conditions, to lend Paisano Publications up to $22,000,000 (the "Nomura
   Indebtedness").

   On April 12, 2000, Nomura agreed to waive defaults under the Credit Agreement
   relating to maximum capital expenditures, maximum leverage ratios, minimum
   consolidated EBITDA, minimum consolidated net worth, minimum consolidated
   working capital and minimum interest coverage ratios, pursuant to a Second
   Amendment and Waiver Under Note and Warrant Purchase Agreement and Second
   Amendment to Warrant. In addition, Nomura agreed to amend the Credit
   Agreement in order to relax covenants for the 2000 calendar year relating to
   the maintenance of required levels of net worth and EBITDA, maximum leverage
   ratios and minimum interest coverage ratios. In consideration of the
   foregoing waivers and amendments, the Company agreed to reduce the exercise
   price on warrants to purchase 355,920 shares of Easyriders Common Stock
   issued to Nomura under the Credit Agreement, from $1.625 to "market price,"
   as determined by a formula set forth in the Second Amendment to Warrant.

                                       9
<PAGE>

EASYRIDERS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (unaudited) (Continued)
--------------------------------------------------------------------------------

    Forgiveness of Debt by Stockholder - Joseph Teresi, sole stockholder of
    Paisano Publications prior to the Reorganization, was issued 6,493,507
    shares of the Company's common stock in the Reorganization.  In addition,
    Mr. Teresi received promissory notes aggregating $13,000,000 (the
    "Contributor Notes").  The Contributor Notes consist of a subordinated
    promissory note in the amount of $5,000,000, a limited recourse subordinated
    promissory note in the amount of $5,000,000 secured by the Martin Mirror
    Note (as defined in the applicable instruments) and a subordinated
    promissory note in the amount of $3,000,000.

    During 1999, Mr. Teresi acquired an additional 1,801,790 shares of Common
    Stock through open market purchases and purchases directly from the Company
    for cash and/or the forgiveness of debt under the Contributor Notes.  As
    part of the Nomura Consent and Waiver dated February 7, 2000, and in order
    to help alleviate the Company's cash flow problems, Mr. Teresi purchased on
    February 9, 2000 an additional 493,827 shares of the Company's Common Stock
    for $250,000 in cash.  Concurrently, the Company's Chairman, John Martin
    made an identical purchase of 493,827 shares for $250,000 in cash.  These
    shares were sold to Messrs. Teresi and Martin at a 25% discount from market
    price, market price being determined as the average daily closing price of
    the Common Stock on the American Stock Exchange over period of 10
    consecutive trading days ending on and including February 2, 2000.

    Effective April 3, 2000, Joseph Teresi, the sole stockholder of Paisano
    Publications prior to the Reorganization, agreed to forgive $3,446,787 of
    principal owed on the Subordinated 7% note, leaving a principal balance of
    $128,213, in exchange for 3,356,170 shares of the Company's Common Stock.
    This transaction was valued at full market price without discount, market
    price being determined as the average daily closing price of the Common
    Stock on the American Stock Exchange over 30 consecutive trading days ending
    on and including March 22, 2000, the date of the Company's last meeting of
    its Board of Directors.  Concurrently, Mr. Teresi agreed to forgive (a) the
    residual balance due under the Subordinated 7% note of $128,213, (b) $96,739
    of other obligations owed to Mr. Teresi by the Company in connection with
    rent and consulting fees, and (c) accrued interest on the Contributor Notes
    of $525,040, in exchange for the undertakings of Paisano Publications
    pursuant to an agreement involving the Company's events division.

    In April 2000, the Company entered into an agreement with Joseph Teresi
    pursuant to which the assets of Easyriders of Columbus will be sold to Mr.
    Teresi (the "Columbus Transaction"), in exchange for forgiveness by Mr.
    Teresi of certain financial obligations owed to him by Paisano Publications
    and/or the Company.  The total amount of forgiveness is anticipated to be
    approximately $600,000.  Upon closing of the Columbus Transaction,
    Easyriders of Columbus will be relieved of all liability under the lease for
    the premises occupied by the retail operations in question.  Mr. Teresi, who
    owns the premises, has agreed to continue operating the business as
    "Easyriders of Columbus" pursuant to a licensing agreement with Easyriders.
    The Company anticipates recording a loss associated with the sale of
    Easyriders of Columbus upon its consummation of approximately $1,400,000,
    including a goodwill write-off of approximately $879,000.

                                       10
<PAGE>

EASYRIDERS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (unaudited) (Continued)
--------------------------------------------------------------------------------

   Assumption of the Siena Loan - In October 1999, Paisano Publications issued a
   $275,000 increasing rate secured promissory note to an investment
   partnership, Siena Capital Partners, L.P.  This loan (the "Siena Loan") is
   subordinate to the Nomura Indebtedness.  The loan bears interest at a rate of
   20% per annum (increasing by 1% monthly beginning April 14, 2000), and is due
   and payable with accrued interest on October 14, 2000. Warrants to purchase
   100,000 shares of the Common Stock of the Company  were issued with an
   exercise price of $0.01 per share. If the Siena Loan has been paid off in its
   entirety by April 13, 2000, the warrants become null and void. In addition,
   if the balance is not paid in full by July 13, 2000, the Company must issue
   warrants to purchase an additional 300,000 shares of the Common Stock of the
   Company, and if the balance is not paid in full by October 13, 2000, the
   Company must issue warrants to purchase an additional 100,000 shares of the
   Common Stock of the Company.  Thereafter, until the loan is paid in full, the
   Company must issue warrants to purchase 150,000 shares of the Common Stock of
   the Company on the 13th day of each month.

   As of April 13, 2000 the Company did not possess the resources to pay off the
   Siena Loan.  However, John Martin and Joseph Teresi were granted a right of
   first refusal in connection with any assignment of the Siena Loan.  Based on
   this right, the Company pursued negotiations with Mr. Teresi and Mr. Martin
   concerning their assumption of the Siena Loan upon terms more favorable to
   the Company.  These negotiations were successful and on April 13, 2000, Mr.
   Martin and Mr. Teresi each paid to Siena the sum of $137,500 and assumed the
   position of Siena with respect to the Siena Loan.  Concurrently, the first
   100,000 warrants vested, and Mr. Martin and Mr. Teresi agreed to make the
   following modifications to the Siena Loan terms: (i) the interest rate will
   be reduced from 20% per annum to 13% per annum, and (ii) provided the Siena
   Loan is paid off by December 31, 2000, twenty percent (20%) of all warrants
   vested by and through such date will be surrendered.  These modifications are
   subject to the formal consent of Nomura, which the Company is confident will
   be secured.

   Letter of Intent for the Sale of a Restaurant - El Paso is presently in
   negotiations with an independent third party concerning the sale of one of El
   Paso's restaurants in Arizona. Discussions have progressed to the point of a
   letter of intent which is subject to certain contingencies. The transaction
   contemplates that the purchaser will pay cash for a 100% interest, and will
   then enter into a development agreement with El Paso pursuant to which the
   purchaser will develop three additional El Paso restaurants as a franchisee
   of El Paso.

                                       11
<PAGE>

Item 2.   Management's Discussion and Analysis of Financial Condition and
          Results of Operations.


         Management's discussion and analysis of the financial condition and the
results of operations of the Company should be read in conjunction with the
Consolidated Financial Statements and related Notes thereto.

Overview

         Easyriders was organized under the laws of the state of Delaware on May
13, 1998. Easyriders currently derives substantially all of its revenues from
the operations of Paisano Publications and El Paso.

         On September 23, 1998, Easyriders consummated a series of transactions
(the "Reorganization") comprising the following: (a) the acquisition by
Easyriders from Joseph Teresi of all of the outstanding common stock of Paisano
Publications and certain affiliated corporations (the "Paisano Companies"),
engaged at the time in (i) publishing special-interest magazines relating
primarily to American-made "V-Twin" motorcycles and tattoo art, (ii) selling
branded motorcycle apparel and accessories through a mail-order catalogue,
events and franchise stores, (iii) producing motorcycle and tattoo-related
events, and franchising retail stores to market its branded motorcycle apparel
and accessories; (b) the acquisition by Easyriders of all of the outstanding
membership interests of El Paso, which at the time was engaged in the operation
of four restaurants under the name "El Paso Bar-B-Que"; and (c) the merger (the
"Merger") of a subsidiary of Easyriders with and into Newriders, Inc., a Nevada
corporation ("Newriders").

         As a result of the Merger (i) each two shares of Newriders common
stock, par value $.01 per share (the "Newriders Common Stock") were exchanged
for one share of Easyriders common stock, par value $.001 per share ("Easyriders
Common Stock"), and the shareholders of Newriders immediately prior to the
Merger became stockholders of Easyriders, (ii) all of the outstanding options,
warrants and other convertible securities exercisable for or convertible into
Newriders Common Stock were exchanged for the right to purchase or convert into
one-half the number of shares of Easyriders Common Stock at an exercise price or
conversion ratio per share equal to two times the exercise price or conversion
ratio provided for in the stock option, warrant or other agreements evidencing
such options, warrants or other convertible securities, and (iii) Newriders, the
Paisano Companies and El Paso became wholly-owned subsidiaries of Easyriders.
The Merger was accounted for as a combination of entities under common control,
similar to a pooling of interest. Therefore, the historical financial statements
represent the combined financial statements of the Company and Newriders. The
acquisitions of the Paisano Companies and El Paso were accounted for as a
purchase.

         The acquisitions of the Paisano Companies and El Paso had, and will
continue to have, a material impact on the Company's financial statements;
accordingly, current and future financial statements may not be directly
comparable to the Company's historical financial statements.  In future periods,
the amortization of goodwill will significantly effect the Company's financial
statements.

                                       12
<PAGE>

Use of EBITDA

         The following comparative discussion of the results of operations and
financial condition of the Company includes, among other factors, an analysis of
changes in the operating income of the business segments before interest
expense, taxes, depreciation and amortization ("EBITDA") in order to eliminate
the effect on the operating performance of the Paisano Companies and El Paso of
significant amounts of amortization of intangible assets and interest expense
recognized through the Reorganization. Financial analysts generally consider
EBITDA to be an important measure of comparative operating performance for the
businesses of the Company and its subsidiaries, and when used in comparison to
debt levels or the coverage of interest expense as a measure of liquidity.
However, EBITDA should be considered in addition to, not as a substitute for,
operating income, net income, cash flow and other measures of financial
performance and liquidity reported in accordance with accounting principles
generally accepted in the United States of America. Also, the Company has added
back non-cash charges relating to stock issuance expenses to derive an adjusted
EBITDA ("Adjusted EBITDA").

                                       13
<PAGE>

Results of Operations

The following tables set forth certain operating data for Easyriders for the
three months ended March 31, 2000 and 1999:

<TABLE>
<CAPTION>
                                           Easyriders and           Paisano
                                              Newriders            Companies               El Paso          Consolidated
                                                              For the Three Months Ended March 31, 1999
                                           -----------------------------------------------------------------------------
                                                                            (unaudited)
<S>                                        <C>                   <C>                  <C>                   <C>
SALES
Publishing                                 $          -          $ 5,620,709            $         -         $ 5,620,709
Goods and services                                                 1,442,912                                  1,442,912
Food service                                                                              2,863,334           2,863,334
Franchising                                                           48,137                                     48,137
Other operations                                                   1,056,620                                  1,056,620
                                           ----------------------------------------------------------------------------
                                                      -            8,168,378              2,863,334          11,031,712
COST OF SALES
Publishing                                                         4,417,001                                  4,417,001
Goods and services                                                 1,479,066                                  1,479,066
Food service                                                                              1,770,743           1,770,743
Franchising                                                                -                                          -
Other operations                                                     918,363                                    918,363
                                           ----------------------------------------------------------------------------
                                                      -            6,814,430              1,770,743           8,585,173
GROSS MARGIN
Publishing                                            -            1,203,708                      -           1,203,708
Goods and services                                    -              (36,154)                     -             (36,154)
Food service                                          -                    -              1,092,591           1,092,591
Franchising                                                           48,137                                     48,137
Other operations                                      -              138,257                      -             138,257
                                           ----------------------------------------------------------------------------
                                                      -            1,353,948              1,092,591           2,446,539
EXPENSES
Publishing                                                         1,086,440                                  1,086,440
Goods and services                                                   406,522                                    406,522
Food service                                                                                886,081             886,081
Franchising                                                          540,062                                    540,062
Other operations                                                      23,661                                     23,661
Unallocated expenses                            526,265               72,230                                    598,495
                                           ----------------------------------------------------------------------------
                                                526,265            2,128,915                886,081           3,541,261
INCOME (LOSS) FROM OPERATIONS
Publishing                                            -              117,268                      -             117,268
Goods and services                                    -             (442,676)                     -            (442,676)
Food service                                          -                    -                206,510             206,510
Franchising                                                         (491,925)                                  (491,925)
Other operations                                      -              114,596                      -             114,596
Unallocated                                    (526,265)             (72,230)                     -            (598,495)
                                           ----------------------------------------------------------------------------
                                               (526,265)         $  (774,967)           $   206,510         $(1,094,722)
                                           ============================================================================

NET LOSS                                       (697,804)         $(1,352,983)           $   210,368         $(1,840,419)
                                           ============================================================================

EBITDA                                     $   (398,345)         $  (212,437)           $   452,581         $  (158,201)
                                           ============================================================================
</TABLE>

                                       14
<PAGE>

<TABLE>
<CAPTION>
                                           Easyriders and           Paisano
                                              Newriders            Companies                El Paso         Consolidated
                                                              For the Three Months Ended March 31, 2000
                                           -----------------------------------------------------------------------------
                                                                            (unaudited)
<S>                                        <C>                   <C>                    <C>                <C>
SALES
Publishing                                   $       -            $ 5,487,497             $         -       $  5,487,497
Goods and services                                                  1,432,451                                  1,432,451
Food service                                                                                3,346,368          3,346,368
Franchising/licensing                                                       -                                          -
Other operations                                                    1,485,491                                  1,485,491
                                           -----------------------------------------------------------------------------
                                                     -              8,405,439               3,346,368         11,751,807
COST OF SALES
Publishing                                                          4,359,798                                  4,359,798
Goods and services                                                  1,416,881                                  1,416,881
Food service                                                                                2,049,075          2,049,075
Franchising/licensing                                                       -                                          -
Other operations                                                    1,020,058                                  1,020,058
                                           -----------------------------------------------------------------------------
                                                     -              6,796,737               2,049,075          8,845,812
GROSS MARGIN
Publishing                                           -              1,127,699                       -          1,127,699
Goods and services                                   -                 15,570                       -             15,570
Food service                                         -                      -               1,297,293          1,297,293
Franchising/licensing                                                       -                                          -
Other operations                                     -                465,433                       -            465,433
                                           -----------------------------------------------------------------------------
                                                     -              1,608,702               1,297,293          2,905,995
EXPENSES
Publishing                                                          1,035,787                                  1,035,787
Goods and services                                                    321,929                                    321,929
Food service                                                                                1,057,897          1,057,897
Franchising/licensing                                                 135,925                                    135,925
Other operations                                                        6,700                                      6,700
Unallocated expenses                           657,529                 53,138                                    710,667
                                           -----------------------------------------------------------------------------
                                               657,529              1,553,479               1,057,897          3,268,905
INCOME (LOSS) FROM OPERATIONS
Publishing                                           -                 91,912                       -             91,912
Goods and services                                   -               (306,359)                      -           (306,359)
Food service                                         -                      -                 239,396            239,396
Franchising/licensing                                                (135,925)                                  (135,925)
Other operations                                     -                458,733                       -            458,733
Unallocated                                   (657,529)               (53,138)                      -           (710,667)
                                           -----------------------------------------------------------------------------
                                             $(657,529)            $   55,223             $   239,396       $   (362,910)
                                           =============================================================================

NET LOSS                                     $(834,572)            $ (682,075)            $   133,529       $ (1,383,118)
                                           =============================================================================

EBITDA                                       $(518,077)            $  578,961             $   475,890       $    536,774
                                           =============================================================================
Adjusted EBITDA/1/                           $(344,835)            $  578,961             $   475,890       $    710,016
                                           =============================================================================
</TABLE>

/1/  Includes add-back of non-cash charges related to stock issuance expenses
     of $173,242.

                                       15
<PAGE>

The three months ended March 31, 2000 compared to the three months ended March
31, 1999


Results of Operations of Easyriders Inc. and subsidiaries

     Consolidated total revenues for the three month periods increased $720,095,
or 7%, from $11,031,712 for the three months ended March 31, 1999 to $11,751,807
for the same three months in 2000.  This increase in revenues is substantially
comprised of an increase of $483,034 in El Paso revenues, an increase of
$207,985 in Easyriders Events revenues, an increase of $151,565 in Bros Club
revenues, and an offsetting decrease in Paisano revenues of $133,212.

     During the three months ended March 31, 2000, the Company experienced a net
loss in the amount of $1,383,118, reflecting a loss reduction of $457,301, or
25%, when compared with the net loss of $1,840,419 for the three months ended
March 31, 1999. The loss reduction for the three month period ended March 31,
2000 can be attributed to the $459,456 increase in gross margin, the $272,356
decrease in operating expenses, and the offsetting net increase in interest and
other expenses of $274,511.

     The Company's net loss per share was reduced $0.04 per share, or 40%, to
$0.06 per share for the three months ended March 31, 2000, as compared to the
net loss of $0.10 per share for the three months ended March 31, 1999.  The
Company experienced EBITDA in the amount of $536,774 for the three months ended
March 31, 2000, an improvement of $694,975 when compared with the negative
EBITDA of $158,201 for the three months ended March 31, 1999.  Adjusted EBITDA,
which reflects the add-back of non-cash charges related to stock issuance
expenses of $173,242 for the three months ended March 31, 2000, was $710,016 or
an improvement over EBITDA for the three months ended March 31, 1999 of
$868,217.  There were no stock issuance expenses for the three months ended
March 31, 1999.

     Results of Operations: Paisano Companies

     The operating results of the Company for the three months ended March 31,
1999 and March 31, 2000 include the results for the Paisano Companies.

     The Paisano Companies' total sales increased $237,061, or 3%, from
$8,168,378 for the three months ended March 31, 1999 to $8,405,439 for the three
months ended March 31, 2000.  This increase in total sales is comprised of a
decrease in sales from the publishing segment of $133,212, a decrease in sales
from the goods and services segment of $10,461, a decrease in sales from the
franchising/licensing segment of $48,137, and an increase in sales from other
operations of $428,871.  The decrease in the publishing segment revenues can be
significantly attributed to the discontinuation of Quick Throttle magazine.  The
decrease in the franchising/licensing segment revenues is the result of the
Company's decision in 1999 to waive payment of franchise fees by its
franchisees.  The increase in the other operations segment revenues can be
substantially attributed to a combination of increased participation in the
events held by Easyriders Events ($207,985) and the sale of Bros Club which
resulted in the recognition of deferred revenue ($151,565).

     The Paisano Companies' total gross margin increased $254,754, or 19%, from
$1,353,948 for the three months ended March 31, 1999, to $1,608,702 for the
three months ended March 31, 2000.  As a percentage of sales, total gross margin
for the Paisano Companies increased from 17% to 19%.  The increase in gross
margin can be substantially attributed to the increase in margin resulting from
the sale of Bros Club.  The Paisano Companies' total income/loss from operations
decreased $830,190, from a loss of $774,967 for the three months ended March 31,
1999 to income of $55,223 for the three months ended March 31, 2000.  This
improvement in operating results is comprised of a decrease in income from

                                       16
<PAGE>

operations of $25,356 from the publishing segment, a decrease in loss from
operations of the goods and services segment of $136,317, a decrease in loss
from the operations of the franchising/licensing segment of $356,000, an
increase in income from operations of other segments of $344,137, and a decrease
in expenses not allocated to any segment of $19,092.  The decrease in loss from
operations from the franchising/licensing segment can be substantially
attributed to the reduction in legal and professional fees of approximately
$216,000.  Legal and professional fees were unusually high in the first quarter
of 1999 as a result of the pending litigation, which was settled in the first
quarter of 2000.  The increase in income from operations of the other operations
segment can be substantially attributed to the increase in revenues from
Easyriders Events and from the sale of Bros Club (see above).

     The Paisano Companies' publishing segment includes sales generated from
subscription sales, newsstand sales and advertising sales related to the
Companies' eleven special interest magazines.  The related cost of sales
includes direct costs related to the sales consisting primarily of printing,
publication and distribution costs.  The goods and services segment includes
sales generated from the sale of apparel and other products through its mail
order catalogs, one retail store, and franchise/license programs.  The related
cost of sales includes the costs of the apparel and other products.  The
franchising/licensing segment includes sales generated through royalties and
franchise fees charged to the Companies' twenty six operating franchisees.
There is no related cost of sales.  The Paisano Companies' other segments
primarily includes Easyriders Events, Inc., which generates substantially all of
its sales from the sale of tickets to its motorcycle rodeos, motorcycle shows,
and tattoo shows.  Cost of sales for the other segments represent direct costs
of promoting the events.

     The Paisano Companies' operating expenses for the three months ended March
31, 2000 of $1,553,479 include $1,500,341 of expenses specifically allocated to
individual segments and $53,138 which have not been allocated to any one
segment. The allocated expenses include payroll, promotion, and other general
and administrative expenses specifically attributable to the business segment.
The unallocated expenses represent legal and professional fees.

     Payroll and related benefits for the Paisano Companies decreased $80,981,
or 19%, from $327,524 for the quarter ended March 31, 2000 to $408,505 for the
same quarter in the prior year, as a result of efforts to reduce costs by
decreasing staff size.  Depreciation and amortization for the quarters ended
March 31, 1999 and 2000 totaled $567,727 and $558,126, respectively, of which
$469,256 and $469,740, respectively, relate to the amortization of the
$56,368,752 in goodwill created out of the Paisano Companies' acquisition by the
Company.

     Interest expense for the Paisano Companies increased $105,716, or 18%, from
$572,819 for the quarter ended March 31, 1999 to $678,535 for the quarter ended
March 31, 2000.  This increase is primarily attributable to the increase in the
prime rate and the additional borrowings under the Revolving Loan.

     The net loss for the Paisano Companies decreased $670,908, or 50%, from
$1,352,983 for the three months ended March 31, 1999 to $682,075 for the three
months ended March 31, 2000.  EBITDA improved by $791,398 from a negative EBITDA
of $212,437 for the three months ended March 31, 1999 to an EBITDA of $578,961
for the three months ended March 31, 2000.

     The principal raw material used in publishing operations of the Paisano
Companies is paper. Paper costs represented approximately 17% and 16% of Paisano
Publications' production, selling and other direct costs for the three months
ended March 31, 2000 and 1999, respectively. Certain commodity grades of paper
have shown considerable price volatility over the last decade.  There can be no
assurance that future fluctuations in paper prices will not have a material
adverse effect on the Paisano Companies' results of operations or financial
condition.

                                       17
<PAGE>

     The profitability of the Paisano Companies' publishing segment is also
affected by the cost of postage and could be materially adversely affected if
there is an increase in postal rates. Future fluctuations in postal rates could
have a material adverse effect on the publishing segments' results of operations
or financial condition. No assurance can be given that the publishing segment
can recoup paper or postal cost increases by passing them through to its
advertisers and readers. In addition, future fluctuations in paper prices or
postal rates could have an effect on comparisons of the results of operations
and financial condition of the publishing segments.

Results of Operations: El Paso

     The operating results of the Company for the three months ended March 31,
2000 and 1999 include the  results for E1 Paso.

     E1 Paso's sales from its four El Paso Bar-B-Que Restaurants increased
$483,034, or 17%, from  $2,863,334 for the three months ended March 31, 1999 to
$3,346,368 for the three months ended March 31, 2000.  This increase can be
substantially attributed to the relocation of the Tulsa store to a bigger
facility (approximately $194,000) and the increased revenues generated by the
catering division (approximately $185,000) as a result of increased efforts to
promote this portion of the business.   Cost of sales, which includes food and
direct payroll costs related to the operations of the restaurants, increased
$278,332, or 16%, from $1,770,743 to $2,049,075, which is constant with the
increase in sales levels.  Gross margin as a percentage of sales remained
constant at 38%, as did operating expenses at 31% of sales, and income from
operations at 7% of sales.  Interest expense associated with debt used to
finance the restaurants and capital leases increased $48,735, or 85%, from
$57,132 for the three months ended March 31, 1999 to $105,867 for the three
months ended March 31, 2000.  Net income decreased $76,839, or 37%, from
$210,368 for the three months ended March 31, 1999 to $133,529 for the three
months ended March 31, 2000.  Net income as a percentage of sales decreased from
7% to 4%, substantially as a result of the increase in interest expense.  EBITDA
increased $23,309, or 5%, from $452,581 to $475,890.

Liquidity and Capital Resources

     The Company's primary cash requirements are to fund the Company's working
capital needs, primarily accounts receivable, inventory and prepaid expenses and
to service its debt.  On March 31, 2000, the Company had negative working
capital of $8.1 million due primarily from the loss sustained during the three
month period ended March 31, 2000, and to deferred subscription and advertising
income of $3,539,355.

     Cash used in operating activities during the three months ended March 31,
2000 totaled $0.7 million.  The net loss of $1.4 million was offset by non-cash
charges of $0.2 million for common stock issued for services and interest, $0.8
million for depreciation and amortization, a $0.1 million loss on the sale of
fixed assets, and $0.1 million of amortization of debt issuance costs.  Cash of
$0.5 million was used by changes in operating accounts.

     Upon its acquisition by the Company, Paisano Publications obtained an
aggregate of $22,000,000 in Nomura Indebtedness.  This financing was comprised
of $17,000,000 of senior term loans (the "Term Loans") and $5,000,000 of
revolving loans (the "Revolving Loans").  The proceeds from the Term Loans plus
$3,500,000 of the Revolving Loans were used to repay certain promissory notes
issued to the shareholder of the Paisano Companies in conjunction with the
Paisano Acquisition and to pay certain

                                       18
<PAGE>

acquisition expenses.  To the extent that Paisano Publications is in compliance
with the terms of the Nomura Indebtedness, any unused portion of the Revolving
Loans may be used by Paisano Publications for working capital purposes. At March
31, 2000, there was $300,000 of available borrowings under the Revolving Loans
subject to the approval of the Lender. On April 12, 2000, the Lender waived the
defaults that existed under the Nomura Indebtedness as of December 31, 1999. As
a result, the Company is now in compliance with the terms of the Nomura
Indebtedness, and available borrowings are no longer subject to the approval of
the Lender.

     The Nomura Indebtedness is guaranteed (the "Guarantees") by the Company and
the Paisano Companies, other than Paisano Publications (the "Guarantors").  The
Nomura Indebtedness will mature on September 23, 2001, and bears interest at an
annual rate equal to the prime rate of the Lender from time to time plus 1.85%,
payable monthly.  The Nomura Indebtedness and the Guarantees are secured by a
first priority security interest in substantially all of the tangible and
intangible assets (owned or hereafter acquired) of the Company and the Paisano
Companies, including all of the capital stock or equity interests of the Paisano
Companies, and Newriders.  The Nomura Indebtedness and the Guarantees constitute
the sole senior secured indebtedness of Paisano Publications and Guarantors and
rank senior to all other indebtedness of Paisano Publications and the
Guarantors.  With respect to the September 23, 2001 maturity, the Company has
begun to explore alternative financing sources and believes it will be able to
either negotiate with Nomura an extension of the maturity date, or to refinance
the Nomura Indebtedness with other lenders and/or investors.

     At the end of each one-month period in which the Term Loans are
outstanding, Paisano Publications is required to prepay the Term Loans in an
aggregate principal amount equal to 35% of Excess Cash Flow, as defined in the
Credit Agreement, for such period, to the extent such Excess Cash Flow is
achieved.  Because this prepayment is dependent upon the Company achieving
Excess Cash Flow, which is dependent on uncertain future events, no amounts have
been classified as current liabilities at March 31, 2000.

     Subject to certain limitations on dividends, provided that no event of
default has occurred, Paisano Publications may advance funds to the Company
monthly, limited to the lessor of $100,000 or 35% of the Excess Cash Flow for
the preceding monthly period.  In addition, the Company is able to secure
advances from El Paso without restriction.  As of March 31, 2000, Paisano
Publications has been able to provide $204,712 of funding to the Company based
on Paisano's attainment of Excess Cash Flow.  The inability of Paisano
Publications to provide funds to the Company can adversely impact the ability of
the Company to repay certain expenses of the Company.

     Because the Nomura Indebtedness includes restrictions on the ability of the
Paisano Companies to transfer funds to the Company in the form of cash
dividends, loans or advances, the net assets of the Paisano Companies are
considered to be restricted.  The restricted net assets of the Paisano Companies
on March 31, 2000 total $29,817,574.

     The Nomura Indebtedness contains numerous operating and financial
covenants, including but not limited to, payment of dividends, limitations on
indebtedness and the maintenance of minimum net worth, minimum working capital,
interest coverage ratios and the achievement of cash flow measures.

     In connection with the Paisano Acquisition, the Company issued Contributor
Notes in the aggregate amount of $13,000,000 to Joseph Teresi, the sole
shareholder of the Paisano Companies prior to the Paisano Acquisition. The
Contributor Notes consisted of a subordinated promissory note in the amount of
$5,000,000, a limited recourse subordinated promissory note in the amount of
$5,000,000 secured by the Martin Mirror Note (as defined in the applicable
instruments) and a short-term

                                       19
<PAGE>

subordinated promissory note in the amount of $3,000,000. The first two notes
(the "Subordinated Notes") bear interest at an annual rate that escalates from
6% to 10% and may be extended for an additional five years. The remaining
$3,000,000 (the "Short Term Note") was initially issued as a 90 day note that
bears interest at an annual rate of 10%. By mutual agreement, the maturity on
the Short Term Note was subsequently extended to March 31, 2000. As of April 1,
2000, the Company was in default in repayment of the $3,000,000 Short Term Note,
and for interest of $242,500 on the Subordinated Notes. On April 3, 2000, Joseph
Teresi waived the default which existed on that date with respect to the non-
payment of interest on the $3,000,000 Short Term Note. In addition, Mr. Teresi
agreed that between March 31, 2000 and March 31, 2002 he would not make any
claim of default in connection with the non-payment of principal under the
$3,000,000 Short Term Note, and that between March 31, 2000 and March 31, 2001,
he would not make any claim of default for interest which was due as of March
31, 2000 or which would accrue between March 31, 2000 and March 31, 2001.
Concurrently, on April 3, 2000 the then remaining principal and interest balance
on the subordinated promissory note was exchanged for 3,356,710 shares of
Easyriders, Inc. Common Stock issued to Mr.Teresi.

     In October 1999, Paisano Publications issued a $275,000 increasing rate
secured promissory note to an investment partnership, Siena Capital Partners,
L.P.  This loan (the "Siena Loan") is subordinate to the Nomura Indebtedness.
The loan bears interest at a rate of 20% per annum (increasing by 1% monthly
beginning April 14, 2000), and is due and payable with accrued interest on
October 14, 2000. Warrants to purchase 100,000 shares of the Common Stock of the
Company  were issued with an exercise price of $0.01 per share. If the Siena
Loan has been paid off in its entirety by April 13, 2000, the warrants become
null and void. In addition, if the balance is not paid in full by July 13, 2000,
the Company must issue warrants to purchase an additional 300,000 shares of the
Common Stock of the Company, and if the balance is not paid in full by October
13, 2000, the Company must issue warrants to purchase an additional 100,000
shares of the Common Stock of the Company.  Thereafter, until the loan is paid
off in full, the Company must issue warrants to purchase 150,000 shares of the
Common Stock of the Company on the 13th day of each month.

     As of April 13, 2000 the Company did not possess the resources to pay off
the Siena Loan.  However, John Martin and Joseph Teresi were granted a right of
first refusal in connection with any assignment of the Siena Loan.  Based on
this right, the Company pursued negotiations with Mr. Teresi and Mr. Martin
concerning their assumption of the Siena Loan upon terms more favorable to the
Company.  These negotiations were successful and on April 13, 2000, Mr. Martin
and Mr. Teresi each paid to Siena the sum of $137,500 and assumed the position
of Siena with respect to the Siena Loan.  Concurrently, the first 100,000
warrants vested, and Mr. Martin and Mr. Teresi agreed to make the following
modifications to the Siena Loan terms:

 .  The interest rate will be reduced from 20% per annum to 13% per annum.

 .  Provided the Siena Loan is paid off by December 31, 2000, twenty percent
   (20%) of all warrants vested by and through such date will be surrendered.

     These modifications are subject to the formal consent of Nomura, which the
Company is confident will be secured.

     The Company continues in its attempts to secure a cash infusion and to
accelerate cash flow, through the pursuit of various approaches, including
selling certain assets, drawing down funds available under the revolving credit
portion of the Nomura Credit Agreement and consummating certain business
transactions.  The Company is also evaluating the issuance of additional debt or
equity securities.  While the Company believes that such efforts, together with
ongoing operations, will enable the Company to

                                       20
<PAGE>

meet its anticipated cash needs for the next 12 months, there can be no
assurance that this will be the case, as projections of future cash needs and
cash flows are subject to substantial uncertainty. In the event that the Company
is unsuccessful in its efforts to raise capital beyond that which is projected
to be realized from current operations, the Company will not be able to meet its
liquidity obligations.

Forward-Looking Information and Certain Factors

     Certain statements in this Form 10-Q and in future filings by the Company
with the Securities and Exchange Commission, in the Company's press releases,
and in oral statements made by or with the approval of an authorized executive
officer constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 (the "Reform Act").  The
forward-looking statements are subject to numerous risks and uncertainties that
could cause actual results to differ materially from those set forth in such
forward-looking statements.  Such risks and uncertainties include, without
limitation, risks associated with future capital needs, management of growth,
availability of adequate financing, integration of business operations,
concentration of stock ownership, restrictions imposed on the Company by the
Lender, the magazine publishing and restaurant business, paper, pork and other
raw material prices and other factors discussed herein, in the Company's
Prospectus/Proxy Statement on Form S-4 dated September 8, 1998 and other filings
submitted to date to the Securities and Exchange Commission.

Recent Accounting Pronouncements

     Statement of Financial Accounting Standards ("SFAS") No. 133, Accounting
for Derivative Instruments and Hedging Activities, was issued in June 1998 and
establishes accounting and reporting standards for derivative instruments,
including certain derivative instruments embedded in other contracts,
(collectively referred to as derivatives) and for hedging activities.  SFAS No.
133 was initially effective for all fiscal quarters of fiscal years beginning
after June 15, 1999.  In July 1999, SFAS No. 137, Accounting for Derivative
Instruments and Hedging Activities - Deferral of the Effective Date of FASB
Statement No. 133, was issued which delays the effective date of SFAS No. 133 to
fiscal years beginning after June 15, 2000.  The Company does not believe that
the adoption of this new standard will have a material impact on its financial
position or results of operations.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.

     The Company is exposed to a variety of risks, including paper price
volatility and changes in interest rates affecting the cost of its debt.

Paper Price Volatility

     A primary component of the Company's cost of revenues in the magazine
publishing segment is the cost of paper.  Consequently, increases in paper
prices can adversely impact the Company results of operations.

Interest Rates

     The Company is subject to certain interest rate  risk related to the Term
Loans.  The Term Loans mature on September 23, 2001 and bear interest at an
annual rate equal to the prime rate of the Lendor plus 1.85% payable monthly.
The interest rate on the balance of $20,995,588 outstanding on March 31, 2000
was 10.6%.  An increase in interest rates of 1% would result in an increase in
interest expense of approximately $210,000.

                                       21
<PAGE>

     PART II -- OTHER INFORMATION
     ----------------------------

Item 1.  Legal Proceedings.

     On April 28, 2000 an action was filed in the U.S District court for the
Central District of California (Los Angeles) by Leon Hatcher, Richard Stafford
and entities controlled by them, naming as defendants the Company, Newriders,
Paisano Publications, El Paso, Easyriders Franchising, Easyriders Licensing,
Easyriders of Ohio, and the following current or former officers and/or
directors of the Company: John Martin, William Prather, Joseph Teresi, J. Robert
Fabregas, William Nordstrom, Robert Davis, Ellen Meagher, Joseph Jacobs, Daniel
Gallery, Wayne Knyal, and Grady Pfeiffer (the "Hatcher Action").  The complaint
also names as a defendant James E. Salven, Trustee in Bankruptcy in connection
with the Pierce Action, previously disclosed by the Company.

     The Hatcher Action alleges wrongful conduct on the part of the named
defendants in connection with Mr. Hatcher's past and current relationship with
Easyriders and Newriders, including:  (a) his role and ownership position in
Newriders prior to the Reorganization, (b) his role and participation in the
Reorganization, (c) his acquisition of shares of Easyriders as a consequence of
the Reorganization, (d) transactions involving the shares held by Mr. Hatcher in
Newriders and Easyriders, (e) the Company's Events business and his role in the
same, (f) the Company's event merchandise business and Mr. Hatcher's role in the
same, (g) the use and possession by Mr. Hatcher of property and vehicles used in
connection with the Events and event merchandise business of the Company, (h)
the acquisition by Mr. Hatcher and Mr. Stafford of franchises to operate retail
stores under the "Easyriders" name pursuant to various written agreements, and
(i) the termination of such franchise agreements by the Company in April, 2000.

     The complaint asserts wrongful conduct by defendants in connection with the
foregoing under a wide range of legal theories, including violations of the
Securities Act of 1933, the Securities Exchange Act of 1934, the California
Corporations Code, Federal Trade Commission Disclosure Rules, the California
Franchise Investment Law Laws and the Federal RICO statute (18 U.S.C. sections
1961-1968); breach of fiduciary responsibilities; fraud, negligent
misrepresentation, breach of contract, infliction of emotional distress,
interference with contracts and business relations, unfair competition and
defamation. Certain of the causes of action are presented as derivative claims,
brought on behalf of Easyriders and/or Newriders against one or more individual
defendants.  The action seeks general and compensatory damages in amounts to be
proven at the time of trial, contract damages of $450,000, punitive damages,
injunctive and declaratory relief, and the appointment of a receiver.

     The Company believes that the Hatcher Action is without merit and that it
has substantial defenses thereto.  The Company and its officers and directors
are insured under a policy providing indemnification for damages arising from
securities claims and the misconduct of its management.  The Company believes
that the Hatcher Action is a claim covered by such policy, and, accordingly,
such claim has been tendered to the carrier in question.  By reason of all the
foregoing, the Company is presently of the view that the Hatcher Action is not
likely to result in materially adverse consequences.  However, if it is
determined that such coverage does not exist, the potential outcome of the
Hatcher Action could be materially adverse to the Company.

                                       22
<PAGE>

Item 2.  Changes in Securities and Use of Proceeds.

  On February 9, 2000, the Company sold to two directors of the Company, John
Martin and Joseph Teresi, 493,827 shares each of common stock of the Company for
the sum of $250,000 each.  The number of shares issued was calculated as 75% of
the average closing price of the common stock, with average closing price being
defined as the average of the last recorded sale price of the common stock on
the ten consecutive trading days ending on and including February 2, 2000.

  In March 2000, the Company issued 400,000 shares of the common stock of the
Company in settlement of a dispute with an ex-franchisee. The number of shares
issued was determined based on the closing price of the stock on the date of
issuance.

  During March 2000, the Company issued 10,500 shares of Easyriders, Inc. stock
to two consultants of Paisano Publications as compensation for services
performed.  The number of shares issued was determined based on the closing
price of the stock on the date of issuance.

  On March 1, 2000, the Company issued 30,059 shares of Easyriders, Inc. stock
to a related party in payment of accrued interest on convertible debentures.
Pursuant to the terms of the debenture, the number of shares issued was
calculated based on a price per share equal to 75% of the average closing bid
price of the common stock for the five days preceding the issuance.

  Effective April 3, 2000, Joseph Teresi, the sole stockholder of Paisano
Publications prior to the Reorganization, agreed to forgive $3,446,787 of
principal owed on the Subordinated 7% note, leaving a principal balance of
$128,213, in exchange for 3,356,170 shares of the Company's Common Stock.  This
transaction was valued at full market price without discount, market price being
determined as the average daily closing price of the Common Stock on the
American Stock Exchange over 30 consecutive trading days ending on and including
March 22, 2000, the date of the Company's last meeting of its Board of
Directors.  Concurrently, Mr. Teresi agreed to forgive (a) the residual balance
due under the Subordinated 7% note of $128,213, (b) $96,739 of other obligations
owed to Mr. Teresi by the Company in connection with rent and consulting fees,
and (c) accrued interest on the Contributor Notes of $525,040, in exchange for
the undertakings of Paisano Publications pursuant to an agreement involving the
Company's events division.

  The transactions described above were exempt from the registration
requirements of the Securities Act of 1933, as amended, pursuant to Section 4(2)
thereof.


Item 6. Exhibits and Reports on Form 8-K

       (a) Exhibits:

       Exhibit Number              Description of Exhibits
       --------------              -----------------------

       27.1                        Financial Data Schedule

       (b)  Reports on Form 8-K:

       No reports on Form 8-K were filed by the Company during the quarterly
       period ended March 31, 2000.

                                       23
<PAGE>

SIGNATURES

  Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                           EASYRIDERS, INC.
                                           ----------------
                                           (Registrant)



Dated: May 12, 2000                         /s/ J. Robert Fabregas
                                            ----------------------------------
                                            J. Robert Fabregas
                                            Chief Financial Officer and
                                            Executive Vice President

                                       24