UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-KSB
(Mark One)
[X]  Annual Report  Pursuant to Section 13 or 15(d) of The  Securities  Exchange
     Act of 1934

                   For the Fiscal Year Ended December 31, 2004

[ ]  Transition  Report  Pursuant  to  Section  13 or  15(d)  of The  Securities
     Exchange Act of 1934

                        Commission File Number 000-51140

                                JUMP'N JAX, INC.
                 ----------------------------------------------
                 (Name of small business issuer in its charter)

           Utah                                              87-0649332
-------------------------------                          --------------------
(State or other jurisdiction of                          (I.R.S. Employer
incorporation or organization)                           Identification No.)

                3270 South 1100 West, South Salt Lake, Utah 84119
               (Address of principal executive offices) (Zip Code)

Issuer's telephone no.:  (801) 209-0545

Securities registered pursuant to Section 12(b) of the Exchange Act:   None

Securities registered pursuant to Section 12(g) of the Exchange Act:   Common

     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[ ] No [X]

     Check if there is no disclosure  of  delinquent  filers in response to Item
405 of  Regulation  S-B  contained  in  this  form,  and no  disclosure  will be
contained,  to the best of the  Registrant's  knowledge,  in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. [X]

     State the issuer's revenues for its most recent fiscal year. $ 12,381

     State the aggregate market value of the voting stock held by non-affiliates
computed by reference  to the price at which the stock was sold,  or the average
bid and ask prices of such stock as of a specified date within 60 days. $ -0-

     State the number of shares  outstanding of each of the issuer's  classes of
common equity, as of the latest practicable date.

         Class                               Outstanding as of February 22, 2005
-----------------------                      -----------------------------------
Common Stock, Par Value                                   2,824,170
   $.001 per share
                       DOCUMENTS INCORPORATED BY REFERENCE

A description of "Documents Incorporated by Reference" is contained in Part III,
Item 14.

Transitional Small Business Disclosure Format.   Yes [  ]  No [X]
<PAGE>


<TABLE>
<CAPTION>

                                JUMP'N JAX, INC.

                                TABLE OF CONTENTS

                                                                                                          Page
                                                                                                          ----
                                                      PART I

<S>   <C>                                                                                                    <C>
Item  1.      Description of Business ...............................................................        3

Item  2.      Description of Property................................................................       12

Item  3.      Legal Proceedings......................................................................       12

Item  4.      Submission of Matter to a Vote of Security Holders.....................................       12

                                                      PART II

Item  5.      Market for Common Equity and Related Stockholder Matters...............................       12

Item  6.      Management's Discussion and Analysis or Plan of Operation..............................       14

Item  7.      Financial Statements...................................................................       19

Item  8.      Changes in and Disagreements with Accountants on Accounting and
                 Financial Disclosure................................................................       19

Item  8A.     Controls and Procedures................................................................       19

Item  8B      Other Information......................................................................       19

                                                     PART III

Item  9.      Directors, Executive Officers, Promoters and Control Persons; Compliance with
                 Section 16(a) of the Exchange Act...................................................       19

Item  10.     Executive Compensation.................................................................       21

Item  11.     Security Ownership of Certain Beneficial Owners and Management and
                 Related Stockholder Matters.........................................................       23

Item  12.     Certain Relationships and Related Transactions.........................................       22

Item  13.     Exhibits...............................................................................       23

Item  14.     Principal Accountant Fees and Services.................................................       23

              Signatures.............................................................................       25
</TABLE>

                                                        -2-

<PAGE>



                                                      PART I

Item  1.      Description of Business

Business Development

     History

     Draco Corp., a Utah corporation  ("Draco-Utah")  was organized December 17,
1985 with the purpose of searching  for and  acquiring an  appropriate  business
opportunity. Draco-Utah conducted an initial public offering of its common stock
in 1987 and then began searching for an appropriate  business  opportunity,  but
conducted only limited business activities for several years.

     On August 17, 1999, each of the former directors and executive  officers of
Draco-Utah resigned and appointed Lane S. Clissold, Steven D. Moulton, and Diane
Nelson to serve as new  directors.  The new board then  elected Mr.  Clissold to
serve as  Draco-Utah's  President,  Ms.  Nelson as its Vice  President,  and Mr.
Moulton  as  its  Secretary/Treasurer.  Ms.  Nelson  subsequently  resigned  her
positions as an officer and director on December 20, 2002.

     On August 17, 1999,  Draco-Utah's new board of directors  unanimously voted
to  authorize  Mr.  Moulton  to  negotiate  with a  business  associate  for the
formation of a wholly-owned  subsidiary to operate an equipment rental business.
Subsequently, the domicile of the corporation was changed from Utah to Nevada by
merging  Draco-Utah  into  its  then  wholly-owned  subsidiary,   Draco  Holding
Corporation,  a Nevada  corporation that had been formed for the sole purpose of
changing Draco-Utah's  domicile.  The change of domicile to Nevada was completed
on September 16, 1999.  Draco-Utah  changed its name in 2004 to China  Northeast
Petroleum  Holdings,  Inc. and is referred to  hereinafter  as "Draco" or "China
Northeast Petroleum."

     On March 3,  2000  Draco's  board of  directors  unanimously  approved  the
formation  of  Jump'n  Jax,  Inc.,  a  Utah  corporation  ("Jump'n  Jax"),  as a
wholly-owned  subsidiary  of Draco.  Since that time Jump'n Jax has operated its
business of leasing  inflatable  balloon  bounce  houses for parties and outdoor
activities in Southern Utah.

     Since March 2000, Jump'n Jax has consistently  incurred operating losses on
a quarterly basis,  with only a few exceptions where we showed a nominal profit.
We have financed our ongoing  operations through various loans and contributions
made by Messrs. Clissold and Moulton.  Effective November 18, 2002, Mr. Clissold
and Mr. Moulton converted loans to Draco with an aggregate  principal balance of
$50,048  and  accrued  interest of  approximately  $6,000 to 200,000  post-split
shares  (100,000  shares each) of Draco common  stock.  Mr.  Clissold  loaned an
additional  $5,000 to Draco in December 2002. During the year ended December 31,
2003,  Mr.  Clissold  and Mr.  Moulton  loaned an aggregate of $15,000 to Draco.
Effective  November 18,  2003,  all  outstanding  loans to Draco made by Messrs.
Clissold and Moulton were converted to 400,000 post-split shares of Draco common
stock  which  were  issued to Mr.  Clissold  and Mr.  Moulton  in equal  amounts
(200,000 shares each).

     On December 18, 2003,  Draco's  Board of Directors  unanimously  approved a
reverse  split of Draco's  authorized  common  stock (both  issued and  unissued
shares) in the ratio of one share for 25 shares.  As a result of the split,  the
number of Draco's  authorized  shares was  reduced  from  500,000,000  pre-split
shares to 20,000,000  post-split  shares,  and the number of Draco's  issued and
outstanding  shares was  reduced  from  18,934,751  pre-split  shares to 757,390
post-split  shares. The par value of Draco's common stock was kept at $0.001 per
share. This reverse split became effective December 30, 2003.

     On December 30, 2003 a total of 100,000 post-split Draco common shares were
issued to each of Mr. Clissold and Mr. Moulton, 30,000 post-split shares were
issued to James T. Wheeler, and a total of 54,000 post-split shares were issued
to consultants for services rendered to Draco.

                                       -3-

<PAGE>
     Share Exchange Agreement

     On April 30, 2004,  Draco,  completed a share  exchange  agreement with the
stockholders  of Hong Xiang  Petroleum  Group Limited,  a British Virgin Island.
Pursuant to the terms of the share  exchange,  Draco  acquired all of the issued
and outstanding capital stock of Hong Xiang in exchange for 18,700,000 shares of
Draco common stock. Upon the closing of the share exchange,  Hong Xiang became a
wholly-  owned  subsidiary  of Draco.  The  transaction  resulted in a change of
control of Draco,  whereby  approximately  93.93% of Draco's  outstanding shares
were owned by persons who were previously stockholders of Hong Xiang. Draco then
changed its corporate name to China Northeast Petroleum Holdings, Inc.

     China Northeast Petroleum, through its subsidiary Hong Xiang, is engaged in
the  extraction  and  production of crude oil. Its current  operations  are in a
portion of the Jilin Quinan Oil Field which is located  southwest of Quinan City
in the Jilin Province of the Peoples  Republic of China.  The area in which Hong
Xiang conducts  operations is one of the portions of the Quinan Oil Field which,
in 1999, was designated by the Jilin Petroleum Group for cooperative exploration
and  production.  Hong Xiang has taken over an  exclusive  20 year  contract  to
produce  oil from the  designated  portion of the Jilin  Quinan Oil Field.  Hong
Xiang  subcontracts  all oil well  drilling  activities to third parties but has
retained direct  responsibility  for well logging,  drill-stem  testing and core
sampling.  All crude oil produced from the production  site is currently sold to
the Jilin Refinery of PetroChina.

     As an additional  condition of the share exchange agreement,  it was agreed
that 100% of the shares of Jump'n Jax, Inc. owned by China  Northeast  Petroleum
(f.k.a.  Draco),  would be distributed to those  stockholders of record of China
Northeast  Petroleum  on March 8, 2004,  prior to the closing of the  agreement.
Jump'n  Jax's   outstanding   shares  were  forward  split  to  accommodate  the
distribution  and,  accordingly,  an aggregate  of 941,390  shares of Jump'n Jax
common stock were issued to the stockholders of record on the basis of one share
of our common  stock for each share of China  Northeast  Petroleum  common stock
owned at the record date.

     We then filed with the SEC a  registration  statement on Form SB-2 in order
to facilitate the  distribution  (spin-off).  Only those  stockholders who owned
Draco shares on March 8, 2004 were entitled to receive shares in connection with
the spin-off.  Those persons that received shares pursuant to the share exchange
agreement or acquired their shares after March 8, 2004, were not be eligible for
the spin- off.  Following the spin-off,  there were 941,390 shares of Jump'n Jax
common stock outstanding.

     As a result of filing our registration  statement, we are obligated to file
with the SEC certain  interim and periodic  reports  including an annual  report
containing audited financial statements.  We anticipate that we will continue to
file such  reports,  notwithstanding  the fact that,  in the future,  we may not
otherwise be required to file such reports based on the criteria set forth under
Section 12(g) of the Exchange Act.

     Our business office is located at 511 East St. George Boulevard,  Suite No.
3, St.  George,  Utah 84770,  and our telephone  number is (435)  619-1133.  Our
principal  executive  offices  are  located at 3270 South 1100 West,  South Salt
Lake, Utah 84119, and our telephone number is (801) 209-0545.

                                      -4-
<PAGE>

Forward Stock Split

     On  January  7,  2005,  our  board  of  directors  unanimously  ratified  a
resolution to effect a forward stock split of our  outstanding  shares of common
stock on a three shares for one share basis. The board  established  January 14,
2005 as the record date for determining those stockholders entitled to shares as
a result of the split.  The stock split was  effected by causing the issuance of
two additional shares of common stock (par value $0.001 per share) to the record
holders of each share of common  stock (par value  $0.001 per share)  issued and
outstanding on the record date. The additional shares were delivered on or about
January 21, 2005 to stockholders of record on the record date without any action
required  by the  stockholders  and that the  issuance of  additional  shares is
treated, for accounting purposes,  as a share dividend. As a result of the stock
split, the total number of common shares  outstanding was increased from 941,390
shares to 2,824,170 shares.

Current Business Activities

     Principal Products and Services

     The  principal  service we offer is a form of childhood  entertainment.  We
currently own and operate six 15' x 15' bounce houses that we rent to customers.
We deliver the bounce houses to customer's homes, businesses, or other places of
use, and inflate them for our  customers  and their guests to use for a specific
amount of time. Some of the bounce houses are based on the Castle Disney, Winnie
the Pooh,  Sports  Superheroes  and sumo wrestling or boxing themes.  The bounce
houses  themselves are generally created based on a particular theme. The themes
can be modified on some bounce  houses by changing  certain  plastic  characters
(such as Disney characters) that can be affixed to the bounce houses.  Customers
may also add to or supplement a particular theme by purchasing decorations based
on a  particular  theme  from  a  party  supply  store,  and  then  using  those
decorations nearby. To date, we have limited our business to renting, delivering
and  inflating  the  bounce  houses.  We have not  been  involved  in  supplying
decorations or other supplies to enhance a particular theme. However, this is an
additional service that we are considering the possibility of offering.

     Some of our  bounce  houses  will  hold more  children  than  others  will.
Depending  on the size of the  children  and the bounce  house used,  our bounce
houses will safely hold approximately 10 to 20 children at the same time.

     Our bounce  houses are  between  two and five  years old.  We believe  that
bounce houses that are well taken care of have a useful life of approximately 15
years. As bounce houses are used more, and as they become older,  they generally
show more wear.  Colors  generally  fade over time, and some repair areas may be
seen.  Older  bounce  houses may look less clean than newer  ones,  and this may
affect their appeal to  customers.  Also,  new bounce houses may be based on hit
movie themes and other currently popular themes or fads that have greater market
appeal. Older bounce houses may be used less often and therefor may not generate
as much revenue as new bounce houses based on popular themes.

     The primary  market for our  services is young  people.  Within  Washington
County,  in Southern Utah, over 36% of the 80,000 person population is under age
18. It is  expected  that the  majority  of these  children  will have  birthday
parties,  and we hope to continue to draw our greatest  customer base from this.
However, we also participate in fairs, carnivals and other events where children
are present.

     Distribution of Products and Services

     Our employee or an independent contractor will deliver the bounce houses to
the location of the party, and inflate the bounce houses.  After the party ends,
our employee or an independent contractor will return the bounce houses to their
storage area, or deliver them to another party location.

                                      -5-
<PAGE>

     Currently, we run three yellow pages ads in Southern Utah, and occasionally
advertise in local newspapers.  However, word of mouth recommendations have been
our biggest source of customers.

     Competition

     The city of St.  George now has three bounce house  services  with which we
compete.  Hoo-ray  Bouncers  and A to Z Kids offer the same type of service  for
about $80 for 3 hours. A third company, Hatch Party Rental, started operating in
St. George during 2001. It usually  charges  approximately  $100 for 3 hours. It
has fairly new equipment.  The bounce house units of Hoo-ray Bouncers and A to Z
Kids are about eight years old and in need of some repair or replacement,  while
our six units are  approximately  one to four years old.  It is our goal to keep
our equipment  clean and modern  looking  compared to those of our  competitors.
Manufacturers  have  designed  newer bounce  houses to be safer than some of the
older designs.  We believe that our fairly new bounce houses are safer than some
older bounce houses that are used by some of our competitors.

     We generally  rent our bounce houses for $80 for three hours,  with a three
hour  minimum,  on Fridays and  Saturdays,  and for $65 for three hours,  with a
three hour minimum,  on Sundays  through  Thursdays.  Our standard daily rate is
$125 for any day of the week. However,  rentals to car dealers or businesses are
generally  made on a  negotiated  daily or weekend  rate that may be  discounted
based on promises of repeat business.  When we locate our bounce houses at fairs
or  carnivals,  we generally  charge $1.00 to $3.00 per child,  depending on the
event  attended.  Our three hour rental  rates are  approximately  $15 less than
Hoo-ray  Bouncers  and A to Z Kids on the week days.  A to Z has an advantage in
that one of its  bounce  houses is larger  and can  accommodate  larger  events.
However,  A to Z is now  located in Kanab,  Utah,  which is almost 80 miles away
from St. George.

     The majority of our business  comes from  rentals in the St.  George,  Utah
area and in the Mesquite, Nevada area. Mesquite, Nevada is located approximately
38 miles from St.  George,  Utah.  Presently  there are no bounce  house  rental
companies  located in Mesquite,  Nevada. We also do business in Cedar City, Utah
which is located approximately 50 miles from St. George, Utah.

     Increased  competition  has  had  an  adverse  affect  on  our  results  of
operations.  It has  affected  our ability to increase  and/or  retain  existing
business.  Increased  competition  could  result  in  price  cutting  and  lower
revenues. In order to compete effectively, we may have to lower rental prices or
offer incentives such as free party supplies.  This may further adversely affect
results of operations.

     Seasonality of Business

     During the September  through May school year,  most of our rental business
is done on weekends and on weekday  evenings.  During the summer months of June,
July and  August,  we have  fairly  active  weekday  rentals  as well as weekend
rentals,  but due to the hot climate in the area,  most summer  rentals occur in
the mornings and evenings.  Our greatest revenues are generally  produced during
the summer months.

     Sources and Availability of Products

     Bounce houses are readily  available  through All American  Inflatables  of
Sacramento,  California, Cutting Edge Creations, Inc., of Burnsville, Minnesota,
and HEC Services Inc., of Orlando, Florida.

     Dependence on Major Customers

     We are not dependent on any one or a few major customers.  Less than 10% of
our revenues came from any one source during our last fiscal year.

                                      -6-
<PAGE>
     Patents, Trademarks, Trade Names and Licenses

     We have no patents, licenses, franchises, concessions, royalty agreements
or labor contracts. Our children's entertainment business is operated under the
Jump'n Jax name. We have not registered the Jump'n Jax name as a trademark, and
we do not have any immediate plans to do so.

     Governmental Regulations

     No special governmental  approval is required to operate our business other
than having a valid business license which generally  applies to all businesses.
Other than maintaining the good standing of our corporate entity, complying with
applicable  local  business  licensing  requirements,  and complying  with other
applicable  securities laws, rules and regulations as set forth above, we do not
believe that existing or probable governmental  regulations will have a material
effect on our operations.

     Research and Development Expenses

     We have not incurred any research and development  expenses in the past and
do not expect to incur any in the foreseeable future.

Employees

     We  presently  have  one  employee  and two  independent  contractors.  The
employee, James T. Wheeler, also serves as our President and a director. The two
independent  contractors  are responsible for taking phone orders and setting up
and overseeing  the use of our bounce houses.  These persons work on a part-time
basis.  We expect to add  employees  only as business and  financial  conditions
warrants.

Facilities

     We presently operate our business from space situated inside Joker Joker, a
party supply store located at 511 East St. George  Boulevard,  St. George,  Utah
84770. This space is made available to us at no cost because Joker Joker sees it
as being  beneficial  for its  business.  We do not own the  building  or have a
written lease agreement with the owner. Our use arrangement  could be terminated
at any time. We believe the value of this property  arrangement is approximately
$250 to $300 per month.

     Our principal  corporate  and  executive  offices are located at 3270 South
1100 West, South Salt Lake, Utah 84119, which is the principal place of business
of our Vice President and director,  Lane Clissold. We have no written agreement
and  currently pay no rent for the use of these  facilities.  We have no current
plans to  secure  additional  facilities  until  such  time as our  business  so
warrants.

Industry Segments

     No  information  is presented  as to industry  segments.  We are  presently
engaged  in  the  principal  business  of  providing  childhood   entertainment.
Reference is made to the  statements  of  operations  contained in the financial
statements  included herewith for a statement of our revenues and operating loss
for the past two fiscal years.

Risk Factors

     Ownership of our common stock is speculative  and involves a high degree of
risk. You should carefully consider the risks and uncertainties  described below
and  other  information  in  this  report.  If  any of the  following  risks  or
uncertainties  actually occur, our business,  financial  condition and operating

                                      -7-
<PAGE>

results,  would likely suffer.  Additional  risks and  uncertainties,  including
those that are not yet identified or that we currently  believe are  immaterial,
may also  adversely  affect  our  business,  financial  condition  or  operating
results.

     Risks Relating to Our Business
     ------------------------------
     Our limited operating history makes it difficult to evaluate our business
     and prospects.
     ---------------------------------------------------------------------------
     We commenced our current business  operations in March 2000 and, because of
our short operating  history,  we have only limited  financial data and business
information for a prospective investor to evaluate our business strategies, past
performance  or an  investment  in our common  stock.  Thus,  investors not have
adequate  information  with  which  to  make  an  informed  investment  decision
regarding our company.

     We have  limited  assets and our current  operations  have not  resulted in
     substantial revenues.
     ---------------------------------------------------------------------------
     We  currently  have assets of $33,231 and  revenues for the past two fiscal
years  ended  December  31,  2004  and  2003  have  been  $12,381  and  $10,441,
respectively.  It is unlikely that our revenues will increase  significantly  in
the  immediate  future unless we are able to expand our  operations,  which will
require  additional  funding.  There can be no assurance that we will be able to
secure such  additional  funds or that we will  continue  our  current  level of
revenues or be able to increase revenues in the future. We expect to continue to
incur  expenses in  connection  with the  operation  of our  business  and other
general  and  administrative  expenses.  Accordingly,  we  need to  continue  to
generate  revenues to achieve  and/or  sustain  profitability.  If we do achieve
increased revenues,  we may be unable to sustain profitability on a quarterly or
annual basis.

     There is substantial doubt about our ability to continue as a going concern
     due to working  capital  shortages,  which means that we may not be able to
     continue operations unless we obtain additional funding.
     ---------------------------------------------------------------------------
     Because we have not shown the  ability to generate  sufficient  revenues to
cover our operating costs on a consistent  basis, in is important that we either
increase revenues in the future or locate an additional  source of funding.  For
fiscal years ended December 31, 2004 and 2003, we incurred net losses of $32,900
and  $340,   respectively.   Accordingly,   the  independent   auditor's  report
accompanying our audited  financial  statements as of December 31, 2004,  raises
doubt about our ability to continue as a going concern. Our financial statements
do not  include  any  adjustments  that might  result  from the  outcome of this
uncertainty. If we are unable to increase revenues or obtain adequate capital to
cover our operating costs, we may be forced to cease operations.

     Additional  required capital may not be available at attractive terms which
     would have a material negative effect on our operating results.
     ---------------------------------------------------------------------------
     In the event we need additional  funds in order to continue or increase our
business  operations,  we may not be able to secure such funding. In the past we
have  been  dependent  on  the  infusion  of  capital  from  our  directors  and
stockholders  in order to continue  our  business.  Currently,  we estimate  our
recurring annual total expenses to be approximately $30,000 per annum. We expect
that our general,  administrative  and other  operating  expenses  will increase
substantially as we accelerate our efforts to expand our business and to satisfy
increased  reporting  and  stockholder   communications  obligations  under  the
securities laws.

                                      -8-
<PAGE>

     We cannot give any assurance that we will be able to obtain necessary funds
required to continue  operations,  or that such funds will be available on terms
favorable  to us. If we borrow  funds we will have to pay  interest and may also
have to agree to restrictions that limit our operating flexibility. In addition,
our  cash  requirements  may vary  materially  from  those  now  anticipated  by
management.  These  changes  may be due to the  results of  business  expansion,
potential  changes in capital and debt markets,  terms on which financing can be
obtained,  competitive  factors and other  factors.  If  adequate  funds are not
available,  we may be  required  to curtail  our  operations  which would have a
negative effect on our financial condition.

     Our  business  is  subject  to  possible  claims  against  us for  injuries
     sustained using our equipment.
     ---------------------------------------------------------------------------
     In the event  someone is injured  while using our  inflatable  bounce house
equipment, we may be subject to potential lawsuits and claims for damages. If an
injury does occur and an action is brought  against us, an adverse outcome could
have substantial negative impact on our financial and business condition.

     We may not be able to expand  the  market for our  products  and  services,
     which could cause our business to fail.
     ---------------------------------------------------------------------------
     It is our  intention  to expand the products we offer and the area in which
we market  our  business  only as ongoing  business  conditions  warrant  and if
necessary  funds are  available.  We  presently  operate  in a  limited  area in
southwestern  Utah.  In order to expand  the area in which we  operate,  we must
purchase additional  equipment and retain additional personnel to operate in the
expanded  areas.  Also,  there can be no assurance that if we do expand into new
area, that such expansion will be successful or that the business generated form
the addition of markets will warrant the expenses  necessary to  facilitate  the
expansion.  If we are unable to  successfully  expand our marketing area and the
products and services that we offer, our business may not be able to grow, or it
may  possibly  decrease  which  will  have  a  negative  impact  on  our  future
operations.

     If we are unable to compete  successfully  with other  businesses  offering
     similar services, our business could be impacted negatively.
     ---------------------------------------------------------------------------
     We currently  compete with three other bounce house  services  operating in
the city of St.  George.  These  businesses are able to compete with us on price
and type of equipment offered. Also, these businesses may have greater financial
resources  than  Jump'n Jax and may be able  upgrade  the number and  quality of
their  bounce  houses that would give them a  competitive  advantage.  Increased
competition could lead to price cutting and lower revenues.  In order to compete
effectively, we may have to lower rental prices or offer incentives such as free
party  supplies.  If we are unable to  compete  successfully  with  these  other
entities,  our  business  would be  negatively  affected and we may be forced to
cease operations.

     Future operating  results are likely to fluctuate  significantly  and cause
     the value of our stock to be  volatile,  which  could cause the value of an
     investment in our company to decline.
     ---------------------------------------------------------------------------
     Our future quarterly and annual  operating  results are likely to fluctuate
significantly  due to a  variety  of  factors,  many of which  are  outside  our
control.  If operating  results do not meet the  expectations  of investors  and
securities  analysts,  the trading  price of our common  stock,  should a public
trading market develop,  could significantly  decline, which may cause the value
of an  investment  in our  company to decline.  Some of the  factors  that could
affect our quarterly or annual  operating  results or impact the market price of
our common stock include:

                                      -9-
<PAGE>

     *   given the nature of the markets in which we participate,  we may not be
         able to reliably predict future revenue and profitability;

     *   our  ability  to expand our  business  and  develop  new  products  and
         services to offer prospective customers;

     *   our ability to retain key  management,  sales and marketing  personnel;
         and

     *   our ability to obtain  sufficient  equipment and supplies to expand our
         business and the markets in which we operate.

     Due to these and other factors, quarterly and annual revenues, expenses and
results of operations could vary significantly and period-to-period  comparisons
should  not  be  relied  upon  as  indications  of  future  performance.   These
fluctuations could cause the value of our stock to be volatile.

     We are heavily  dependent  on our  executive  officers and their loss could
     severely damage our business.
     ---------------------------------------------------------------------------
     Our future success depends on the continued  contributions of our directors
and  executive  officers,  particularly  our  President  James T.  Wheeler.  Mr.
Wheeler,   together  with  Steve  D.  Moulton,  our  Secretary/Treasurer,   were
instrumental in establishing  our company and are central to our development and
growth. We currently do not have keyman life insurance on any of our executives.
Even if we continue to rely on employees for various  specialized  services,  we
will need to recruit and retain  additional  personnel,  including  advisors and
management,  and develop  additional  management  expertise.  Our  inability  to
acquire such services or to develop such expertise could have a material adverse
effect on our operations.

     Because we have not  adopted  policies  governing  potential  conflicts  of
     interest,  the  occurrence of one or more  conflicts  could have a negative
     impact on our business.
     ---------------------------------------------------------------------------
     Our  officers,  directors  and  affiliates  may  be  subject  to  potential
conflicts of interest.  All of our officers and directors  have other  full-time
employment  and are subject to  competing  demands for their time and  resources
between our business and their other business and investment interests. Although
we do not presently anticipate doing business or entering into transactions with
a business or entity in which an affiliate may have an ownership interest, it is
possible that such an occurrence may take place in the future. We have no formal
conflict of interest  policy in place  regarding the possibility of our entering
into  transactions  with  affiliates.  In the event of a  potential  conflict of
interest,  our board of directors is governed by Utah  corporate law relating to
conflicting interest transactions and the "doctrine of corporate opportunities."
Presently,  it is  management's  intent to have any  related  party  transaction
ratified by a disinterested  board of directors and, if necessary,  by a vote of
stockholders.  If  management  does  not  follow  these  guidelines,  there is a
possibility  that  we  could  enter  into a  transaction  without  board  and/or
stockholder  approval and that such  transaction may not be in the best interest
of the business.  This could have a material and negative effect on our business
and financial condition.  There can be no assurance that any potential conflicts
of interest will be resolved fairly in favor of our stockholders or us.

     Management will devote only minimal time our business.
     ---------------------------------------------------------------------------
     Presently,  our three  directors have other full time  obligations and will
devote only such time to the  business of our company as  necessary  to maintain
our ongoing business viability.  Presently, Mr. Wheeler devotes approximately 15
to 25 hours per week to the  operation  of our  business  and the balance of his
time  to  his  other  employment  as a  business  advisor.  Mr.  Moulton  spends

                                      -10-
<PAGE>

approximately 10 hours per week dealing with the  administrative  details of our
business  and the  balance  of his time to  conducting  his own  investment  and
consulting  activities.  Mr. Clissold operates his automotive business full-time
and  devotes  only such time to Jump'n Jax as may be required as a member of the
board of directors.  Thus,  because of their other time commitments,  management
anticipates  that they will devote only a minimal amount of time to our company,
at least until such time as business warrants devoting more time.

     Risks Relating to Ownership of Our Common Stock
     -----------------------------------------------
     Effective  voting  control  is held by  directors  who have the  ability to
     control future election of directors and the affairs of our company.
     ---------------------------------------------------------------------------
     Our  current  directors  own in the  aggregate  approximately  84.8% of our
outstanding  voting  securities.  No other single  stockholder owns in excess of
10%.  Accordingly,  the current  directors  have the ability to elect all of our
directors, who in turn elect all executive officers, and to control our business
and other affairs without regard to the votes of other stockholders.

     No market for our common stock.
     -------------------------------
     We anticipate  applying for listing of our common stock on the OTC Bulletin
Board. However,  there is currently no market for our shares and there can be no
assurance that any such market will ever develop or be  maintained.  Any trading
market that may develop in the future  will most  likely be very  volatile,  and
numerous factors beyond our control may have a significant effect on the market.
Only  companies that report their current  financial  information to the SEC may
have their  securities  included on the OTC Bulletin Board.  Therefore,  we must
remain  current in our  periodic  filings with the SEC in order to apply to have
our securities  quoted on the OTC Bulletin  Board and, if accepted,  to maintain
our  inclusion.  In the event that we lose this status as a "reporting  issuer,"
any future quotation of our shares on the OTC Bulletin Board may be jeopardized.

     China Northeast  Petroleum  stockholders  may want to sell their Jump'n Jax
     shares after they are  received in the  spin-off  and this could  adversely
     affect the market for our securities.
     ---------------------------------------------------------------------------
     China Northeast  Petroleum  distributed  941,390 shares  (2,824,170  shares
post-split)   of  our  common  stock  to  its   stockholders   in  the  spin-off
distribution.  There can be no assurance that  stockholders  of China  Northeast
Petroleum  will be interested in retaining  their  investment in our Jump'n Jax.
Because these stockholders received registered shares in the spin-off,  they are
generally  free to resell their  Jump'n Jax shares,  given that a market for our
shares develops.  If any number of China Northeast Petroleum  stockholders offer
their  shares of Jump'n Jax for sale,  the market  for our  securities  could be
adversely affected.

     The so called "penny stock rule" could make it  cumbersome  for brokers and
     dealers  to trade in our  common  stock,  making  the market for our common
     stock less liquid  which  could have a negative  effect on the price of our
     stock .
     ---------------------------------------------------------------------------
     In the event we are ultimately accepted for trading in the over-the-counter
market,  trading of our common stock may be subject to certain provisions of the
Securities Exchange Act of 1934, commonly referred to as the "penny stock" rule.
A penny stock is generally  defined to be any equity  security that has a market
price less than $5.00 per share, subject to certain exceptions.  If our stock is
deemed to be a penny stock, trading will be subject to additional sales practice
requirements on broker-dealers. These may require a broker-dealer to:

     o   make a special suitability determination for purchasers of our shares;

     o   receive the purchaser's written consent to the transaction prior to the
         purchase; and
                                      -11-
<PAGE>

     o   deliver to a  prospective  purchaser  of our shares  prior to the first
         transaction,  a risk  disclosure  document  relating to the penny stock
         market.

     Consequently,  penny stock rules may restrict the ability of broker-dealers
to trade  and/or  maintain  a market  in our  common  stock.  Also,  prospective
investors  may not  want to get  involved  with  the  additional  administrative
requirements,  which may have a material  adverse  effect on the  trading of our
shares.

     We have never paid a dividend  and do not intend to do so in the  immediate
     future.
     ---------------------------------------------------------------------------
     We have  never  paid  cash  dividends  and  have no  plans  to do so in the
foreseeable  future.  Our  future  policy  will be  determined  by our  board of
directors  and will  depend upon a number of factors,  including  our  financial
condition  and  performance,  our cash  needs and  expansion  plans,  income tax
consequences,   and  the  restrictions  that  applicable  laws  and  our  credit
arrangements may impose.

Item  2.      Description of Property

     We do not presently own any property.

Item  3.      Legal Proceedings

     There are no material pending legal proceedings to which we or our
subsidiary is a party or to which any of our property is subject and, to the
best of our knowledge, no such action against us is contemplated or threatened.

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

     Not applicable
                                     PART II

Item  5.      Market for Common Equity and Related Stockholder Matters

     Currently  there is not, nor has there ever been, a public  trading  market
for our common stock.  We intend to make an  application to the NASD to have our
shares  quoted  on the OTC  Bulletin  Board.  Our  application  to the NASD will
consist  of  current  corporate  information,  financial  statements  and  other
documents as required by Rule 15c2-11 of the Securities Exchange Act of 1934.

     Inclusion on the OTC Bulletin Board permits price quotations for our shares
to be published by that service.  Although we intend to submit an application to
the OTC Bulletin Board, we do not anticipate our shares to immediately be traded
in the public market.  Also,  secondary  trading of our shares may be subject to
certain  state  imposed  restrictions.  Except  for the  application  to the OTC
Bulletin Board,  there are no plans,  proposals,  arrangements or understandings
with any person  concerning  the  development  of a trading market in any of our
securities.  There can be no  assurance  that our shares  will be  accepted  for
trading on the OTC Bulletin Board or any other recognized trading market.  Also,
there can be no assurance that a public  trading  market will develop  following
the  spin-off  or at any other time in the future or, that if such a market does
develop, that it can be sustained.

     Without an active public trading  market,  stockholders  may not be able to
liquidate their shares.  If a market does develop,  the price for our securities
may be  highly  volatile  and  bear  no  relationship  to our  actual  financial
condition or results of operations. Factors discussed herein, including the many
risks  associated with an investment in our  securities,  may have a significant
impact on the market price of our common stock.

                                      -12-
<PAGE>

     The  ability  of  individual  stockholders  to  trade  their  shares  in  a
particular  state may be subject to various rules and regulations of that state.
A number of states  require that an issuer's  securities  be registered in their
state or  appropriately  exempted from  registration  before the  securities are
permitted  to trade in that state.  Presently,  we have no plans to register our
securities in any particular state.

     It is  unlikely  that our  securities  will be  listed on any  national  or
regional  exchange  or on The Nasdaq  Stock  Market.  Therefore  our shares most
likely will be subject to the  provisions of Section 15(g) and Rule 15g-9 of the
Exchange Act, commonly referred to as the "penny stock" rule. Section 15(g) sets
forth certain  requirements for  broker-dealer  transactions in penny stocks and
Rule 15g-9(d)(1) incorporates the definition of penny stock as that used in Rule
3a51-1 of the Exchange Act.

     The SEC generally  defines penny stock to be any equity security that has a
market  price  less than $5.00 per share,  subject to certain  exceptions.  Rule
3a51-1  provides  that any equity  security  is  considered  to be a penny stock
unless that security is:

     o   registered  and  traded  on  a  national  securities  exchange  meeting
         specified criteria set by the SEC;
     o   authorized for quotation on The NASDAQ Stock Market;
     o   issued by a registered investment company;
     o   excluded from the  definition on the basis of price (at least $5.00 per
         share) or the issuer's net tangible assets; or
     o   exempted from the definition by the SEC.

     If our shares are deemed to be a penny stock, trading in the shares will be
subject to additional  sales practice  requirements on  broker-dealers  who sell
penny  stocks  to  persons  other  than  established  customers  and  accredited
investors,  generally  persons  with  assets in excess of  $1,000,000  or annual
income exceeding $200,000, or $300,000 together with their spouse.

     For transactions covered by these rules, broker-dealers must make a special
suitability  determination  for the  purchase of such  securities  and must have
received  the  purchaser's  written  consent  to the  transaction  prior  to the
purchase.  Additionally,  for any  transaction  involving a penny stock,  unless
exempt,  the rules require the delivery,  prior to the first  transaction,  of a
risk  disclosure  document  relating to the penny stock market.  A broker-dealer
also must disclose the  commissions  payable to both the  broker-dealer  and the
registered representative,  and current quotations for the securities.  Finally,
monthly  statements  must be sent  disclosing  recent price  information for the
penny stocks held in the account and  information on the limited market in penny
stocks. Consequently,  these rules may restrict the ability of broker-dealers to
trade and/or maintain a market in our common stock and may affect the ability of
stockholders to sell their shares.

     Presently we have  approximately  87 holders of record of our common stock.
This number does not take into consideration  stockholders whose shares are held
by broker-dealers, financial institutions or nominees.

Dividend Policy

     We have never declared or paid cash dividends or made  distributions in the
past and do not anticipate paying cash dividends or making  distributions in the
foreseeable  future. We currently intend to retain and invest future earnings to
finance operations.

                                      -13-
<PAGE>
Item  6.      Management's Discussion and Analysis or Plan of Operation

     The following  information should be read in conjunction with the financial
statements and notes thereto appearing elsewhere in this Form 10-KSB.

     Unless our business generates sufficient revenues,  it may be necessary for
us to  secure  additional  capital  to  maintain  our  corporate  viability.  We
anticipate that necessary funds will most likely be provided by our officers and
directors in the immediate future.  However, unless we are able to facilitate an
adequate  financing  in the near future to advance our business  plan,  there is
substantial doubt about our ability to continue as a going concern.

     In the  opinion  of  management,  inflation  has not and  will  not  have a
material effect on our operations. Management will continue to monitor inflation
and  evaluate  the  possible  future  effects of  inflation  on our business and
operations.

Plan of Operation

     Our  independent  auditors  have  indicated in a footnote to our  financial
statements  that we have not yet  established  revenues  sufficient to cover our
operating  costs and to allow us to continue as a going concern.  Our ability to
continue as a going  concern is dependent on us  obtaining  adequate  capital to
fund  operating  losses until we become  profitable.  If we are unable to obtain
adequate funding, we could be forced to cease operations.

     Two of our directors, Lane S. Clissold and Steven D. Moulton, have verbally
committed  to provide  additional  funds for at least the next twelve  months to
help us adequately  fund our  operations  and to remain  current in our periodic
reporting obligations to the SEC. However,  neither Mr. Clissold nor Mr. Moulton
is contractually  obligated to provide any additional funds. Thus, if management
does not provide  requisite  funding,  we will be forced to seek  financing from
outside  sources,  although  there can be no  assurance  that we will be able to
secure such funds to continue our business operations.

     Our plan of operations for the next twelve months is to continue  operating
our children's  entertainment  business with our bounce houses  primarily in the
St.  George,  Utah area, the Mesquite,  Nevada area, and in nearby  communities.
This 12 month plan of operations includes our goals of

     o   increasing revenue from our current bounce house rental business;
     o   expanding  our  services  to  include  other  nearby  small  towns  and
         communities;
     o   evaluate the possibility of opening a second store in nearby  Mesquite,
         Nevada;
     o   hire  additional  employees  and/or  independent  contractors if we are
         successful in expanding our business; and
     o   to attain profitability.

     To achieve these goals during the next twelve months,  we intend to provide
superior service,  possibly purchase one or two more popular style bounce houses
that our  competitors  do not have, and raise  additional  funds on an as needed
basis to cover operating  expenses.  Management believes that these plans can be
successfully implemented.

     With the exception of  purchasing  one or two bounce  houses,  if funds are
available, we do not anticipate any other significant  expenditures on equipment
or physical  facilities  during 2005. Our only foreseeable cash  requirements in
2005 will relate to maintaining the corporate viability of Jump'n Jax, preparing
and filing required  periodic  reports with the SEC, and funding  operations for
our children's entertainment bounce house business. We believe that cash on hand
will be sufficient for approximately the next twelve months.  After that, we may
need to fund  operations  through the possible sale of  restricted  common stock
and/or through additional loans that may be  made by our officers and directors.

                                      -14-
<PAGE>

We anticipate  that we will have to raise $10,000 or less during the next twelve
months,  if we  do  not  purchase  additional  bounce  houses.  If  we  purchase
additional bounce houses our cash needs will increase by approximately $3,500 to
$5,500 for each new bounce  house  purchased.  We do not expect any  significant
changes in the number of our employees during the next twelve months.

     In view of our  recurring  losses and the loss of  revenue  during the most
recent twelve months,  management is constantly  evaluating  what can be done to
increase  business  to help us achieve  profitability.  We  believe  that we can
expand into new  geographical  marketing  areas and add additional  equipment as
business warrants and necessary  funding is available.  We are exploring ways to
expand our current business through  increased  marketing and advertising in the
existing  marketplace.  Management is also  reviewing our current  operations to
determine   whether  we  can  reduce  certain   expenses  and  overhead  without
jeopardizing our level of business.

Results of Operations

     Year Ended December 31, 2004 Compared to Year Ended December 31, 2003

     Revenues  for the year ended  December  31, 2004 were  $12,381  compared to
$10,441 for the year ended  December 31,  2003.  Management  attributes  the 19%
increase in revenues to the addition of long-term,  commercial  one-time events.
The increase was partially  offset by increased  competition and the loss of two
independent contractors during the third quarter of 2004.

     Total  operating  expenses  for 2004 were  $41,740,  a 327%  increase  over
expenses of $9,781 in 2003.  The  increase is primarily  attributed  to the 503%
increase in general and  administrative  expenses due to costs and  professional
fees associated with the  preparation and filing of the  registration  statement
for our  spin-off  transaction.  We  reported  a net loss of  $32,900  for 2004,
compared to a net loss of $340 for 2003, primarily attributed to the cost of our
registration statement.

     Management believes that increased competition has had, and may continue to
have,  an  adverse  affect on our  results  of  operations.  This may affect our
ability to increase and/or retain existing business. Increased competition could
result in price cutting and lower revenues. In order to compete effectively,  we
may have to spend more funds on advertising,  lower prices,  or offer incentives
such as free party supplies.  All of this may adversely affect future results of
operations.

     Our business is seasonal and is also dependent on weather  conditions.  The
St.  George,  Utah area has mild  winters  that  enable us to  conduct  business
year-around. Although summers are extremely hot in the St. George area, prior to
2003 we experienced our largest sales revenues during summer months.  Management
attributes  this  historical  increase in business  during  summer  months to an
increase  in demand  for  children's  entertainment  while  children  are out of
school. Many summer rentals occur in the mornings and evenings.

Liquidity and Capital Resources

     At December 31, 2004, we had cash on hand of $27,839  compared to $5,215 as
of December 31, 2003. This increase is the result of two of our directors making
loans to us during 2004  totaling  $45,000.  These loans are  evidenced by notes
payable. Total notes payable to related parties at December 31, 2004 was $55,000
compared to $10,000 at December 31,  2003.  We believe that current cash on hand
is sufficient to satisfy our cash requirements for the next twelve months, which
we estimate to be approximately  $25,000.  However,  in the event operations are
not sufficient to cover ongoing business expenses and/or we purchase  additional
equipment,  we may have to rely on our  directors to provide  additional  funds.
However,  we have no  agreements  with  anyone to  provide  future  funds to our

                                      -15-
<PAGE>

company.  If our directors  are unable to provide  future  funding,  if the need
arises,  we may have to look at alternative  sources of funding.  We do not have
any firm  plans as to the  source of this  alternative  funding  and there is no
assurance  that the such  funds  will be  available  or,  that  even if they are
available,  that they will be available on terms that will be  acceptable to us.
In the event we are unable to secure  necessary  future funding,  we may have to
curtail our business or cease operations completely.

     At December  31, 2004,  we had total assets of $33,231 and a  stockholders'
deficit of $32,686,  compared to total assets of $14,034 and total stockholders'
equity of $214 at December 31, 2003.

Net Operating Loss

     We  have   accumulated   approximately   $31,000  of  net  operating   loss
carryforwards  as of December  31,  2004,  which may be offset  against  taxable
income  and  income  taxes in future  years.  The use of these  losses to reduce
future income taxes will depend on the  generation of sufficient  taxable income
prior  to  the  expiration  of  the  net  operating  loss   carryforwards.   The
carry-forwards  expire in the year  2023.  In the event of  certain  changes  in
control,  there will be an annual limitation on the amount of net operating loss
carryforwards  which  can be  used.  No tax  benefit  has been  reported  in the
financial statements for the year ended December 31, 2004 because there is a 50%
or greater  chance  that the  carryforward  will not be used.  Accordingly,  the
potential  tax  benefit  of the  loss  carryforward  is  offset  by a  valuation
allowance of the same amount.

Forward Looking and Cautionary Statements

     This report, including the sections entitled "Business," "Risk Factors" and
"Management's   Discussion  and  Analysis  or  Plan  of   Operations"   contains
forward-looking  statements.  These  statements  relate to future  events or our
future   financial   performance   and  involve  known  and  unknown  risks  and
uncertainties.  These factors may cause our company's or our  industry's  actual
results,  levels of  activity,  performance  or  achievements  to be  materially
different from those  expressed or implied by the forward-  looking  statements.
These risks and other  factors  include  those listed  under "Risk  Factors" and
elsewhere  in this  report.  In some  cases,  you can  identify  forward-looking
statements by terminology such as "may," "will" "should," "expects,"  "intends,"
"plans,"  anticipates,"   "believes,"   "estimates,"   "predicts,"  "potential,"
"continue," or the negative of these terms or other comparable terminology.

     You should be aware that a variety of factors could cause actual results to
differ  materially  from the anticipated  results or other matters  expressed in
forward-looking  statements.  These risks and  uncertainties,  many of which are
beyond our control, include:

     o   Our ability to maintain our current  business and, if feasible,  expand
         the marketing of our products and services;

     o   Our  ability  to  attract  and  retain  new   individual  and  business
         customers;

     o   The  anticipated  benefits  and  risks  associated  with  our  business
         strategy;

     o   Volatility of the stock market,  particularly  within the entertainment
         sector;

     o   Our future operating ability and the future value of our common stock;

     o   The  anticipated  size or trends  of the  market  segments  in which we
         compete and the anticipated competition in those markets;

                                      -16-
<PAGE>

     o   Our future capital  requirements  and our ability to satisfy our needs;
         and

     o   general economic conditions.

     You are cautioned that any forward-looking statements are not guarantees of
future  performance and are subject to risks and  uncertainties.  Actual results
may differ materially from those included within the forward-looking  statements
as a result  of  various  factors.  Cautionary  statements  in the risk  factors
section and elsewhere in this report identify  important risks and uncertainties
affecting our future, which could cause actual results to differ materially from
the forward-looking statements made in this report.

Recent Accounting Pronouncements

     In January 2003, the Financial  Accounting Standards Board, or FASB, issued
Interpretation  No. 46 ("FIN 46"),  Consolidation of Variable Interest Entities,
which addresses the  consolidation of business  enterprises  (variable  interest
entities),  to  which  the  usual  condition  of  consolidation,  a  controlling
financial  interest,  does not apply.  FIN 46  requires  an entity to assess its
business  relationships to determine if they are variable interest entities.  As
defined  in FIN 46,  variable  interests  are  contractual,  ownership  or other
interests in an entity that change with changes in the entity's net asset value.
Variable  interests in an entity may arise from financial  instruments,  service
contracts,  guarantees,  leases or other arrangements with the variable interest
entity.  An entity that will absorb a majority of the variable interest entity's
expected  losses  or  expected  residual  returns,  as  defined  in FIN  46,  is
considered the primary  beneficiary of the variable interest entity. The primary
beneficiary must include the variable interest entity's assets,  liabilities and
results  of  operations  in its  consolidated  financial  statements.  FIN 46 is
immediately  effective for all variable  interest entities created after January
31,  2003.  For  variable  interest  entities  created  prior to this date,  the
provisions  of FIN 46 were  originally  required to be applied no later than our
first  quarter of Fiscal  2004.  On October 8, 2003,  the FASB issued FASB Staff
Position  (FSP)  FIN  46-6,  Effective  Date  of  FASB  Interpretation  No.  46,
Consolidation of Variable Interest Entities. The FSP provides a limited deferral
(until the end of our second  quarter of 2004) of the  effective  date of FIN 46
for certain  interests  of a public  entity in a variable  interest  entity or a
potential variable interest entity. We will continue to evaluate FIN 46, but due
to the complex nature of the analysis required by FIN 46, we have not determined
the impact on our consolidated results of operations or financial position.

     In April 2003, the FASB issued Statement of Financial  Accounting Standards
(SFAS) SFAS No. 149,  Amendment of Statement 133 on Derivative  Instruments  and
Hedging Activities.  SFAS No. 149 amends and clarifies accounting for derivative
instruments,   including  certain  derivative   instruments  embedded  in  other
contracts,  and for hedging  activities under SFAS No. 133. In particular,  this
Statement  clarifies  under what  circumstances  a contract  with an initial net
investment  meets  the  characteristic  of a  derivative  and when a  derivative
contains a financing  component that warrants special reporting in the statement
of cash flows.  We adopted this standard for contracts  entered into or modified
after June 30, 2003. The adoption of SFAS No. 149 did not have a material impact
on our consolidated results of operations or financial position.

     In May 2003, the FASB issued SFAS No. 150, Accounting for Certain Financial
Instruments with  Characteristics of both Liabilities and Equity. This Statement
requires certain financial instruments that embody obligations of the issuer and
have  characteristics  of  both  liabilities  and  equity  to be  classified  as
liabilities.  We adopted this standard for financial instruments entered into or
modified  after  May 31,  2003.  The  adoption  of SFAS  No.  150 did not have a
material impact on our consolidated results of operations or financial position.

                                      -17-
<PAGE>

     On December 16, 2004 the FASB issued SFAS No. 123(R),  Share-Based Payment,
which is an amendment to SFAS No. 123, Accounting for Stock-Based  Compensation.
This new standard eliminates the ability to account for share-based compensation
transactions   using  Accounting   Principles  Board  ("APB")  Opinion  No.  25,
Accounting  for  Stock  Issued  to  Employees,   and  generally   requires  such
transactions  to be  accounted  for  using  a  fair-value-based  method  and the
resulting  cost  recognized  in our financial  statements.  This new standard is
effective  for awards that are  granted,  modified or settled in cash in interim
and annual periods beginning after June 15, 2005. In addition, this new standard
will apply to unvested  options  granted  prior to the  effective  date. We will
adopt this new standard  effective  for the fourth fiscal  quarter of 2005,  and
have not yet  determined  what impact this  standard  will have on our financial
position or results of operations.

     In  November  2004,  the FASB issued  SFAS No.  151,  Inventory  Costs - an
amendment of ARB No. 43,  Chapter 4. This  Statement  amends the guidance in ARB
No. 43, Chapter 4,  "Inventory  Pricing," to clarify the accounting for abnormal
amounts of idle facility expense,  freight,  handling costs, and wasted material
(spoilage).  Paragraph  5 of ARB 43,  Chapter 4,  previously  stated that ". . .
under  some  circumstances,  items  such as  idle  facility  expense,  excessive
spoilage,  double freight, and rehandling costs may be so abnormal as to require
treatment as current period charges.  . . ." This Statement  requires that those
items be recognized as  current-period  charges  regardless of whether they meet
the  criterion of "so  abnormal."  In addition,  this  Statement  requires  that
allocation of fixed production  overheads to the costs of conversion be based on
the normal  capacity of the production  facilities.  This statement is effective
for inventory  costs incurred during fiscal years beginning after June 15, 2005.
Management  does not  believe  the  adoption  of this  Statement  will  have any
immediate material impact on the company.

     In December 2004, the FASB issued SFAS No. 152,  Accounting for Real Estate
Time-sharing  Transactions,  which amends FASB statement No. 66,  Accounting for
Sales of Real Estate,  to  reference  the  financial  accounting  and  reporting
guidance  for real estate  time-sharing  transactions  that is provided in AICPA
Statement  of Position  (SOP)  04-2,  Accounting  for Real  Estate  Time-Sharing
Transactions.  This statement also amends FASB Statement No. 67,  Accounting for
Costs and Initial Rental  Operations of Real Estate Projects,  to state that the
guidance  for (a)  incidental  operations  and (b) costs  incurred  to sell real
estate  projects does not apply to real estate  time-sharing  transactions.  The
accounting  for those  operations  and costs is subject to the  guidance  in SOP
04-2.  This  Statement is effective  for financial  statements  for fiscal years
beginning  after  June  15,  2005.  Management  believes  the  adoption  of this
Statement will have no impact on the financial statements of the company.

     In December  2004,  the FASB issued SFAS  No.153,  Exchange of  Nonmonetary
Assets.  This  Statement  addresses the  measurement of exchanges of nonmonetary
assets.  The  guidance  in  APB  Opinion  No.  29,  Accounting  for  Nonmonetary
Transactions,  is based on the principle that  exchanges of  nonmonetary  assets
should be measured based on the fair value of the assets exchanged. The guidance
in that Opinion,  however,  included certain exceptions to that principle.  This
Statement amends Opinion 29 to eliminate the exception for nonmonetary exchanges
of  similar  productive  assets and  replaces  it with a general  exception  for
exchanges  of  nonmonetary  assets  that do not  have  commercial  substance.  A
nonmonetrary  exchange has commercial  substance if the future cash flows of the
entity are expected to change  significantly  as a result of the exchange.  This
Statement is effective for financial statements for fiscal years beginning after
June 15, 2005. Earlier  application is permitted for nonmonetary asset exchanges
incurred  during  fiscal  years  beginning  after the date of this  statement is
issued.  Management  believes the adoption of this Statement will have no impact
on the financial statements of the company.

                                      -18-
<PAGE>
Item  7.      Financial Statements

     Financial  statements for the fiscal years ended December 31, 2004 and 2003
have been examined to the extent indicated in their reports by H J & Associates,
LLC,  independent  certified  public  accountants  and  have  been  prepared  in
accordance  with  generally  accepted  accounting  principles  and  pursuant  to
Regulation  S-B  as  promulgated  by  the  SEC.  The  aforementioned   financial
statements are included herein under starting with page F-1.

Item  8.      Changes in and  Disagreements with  Accountants on Accounting and
              Financial Disclosure

     We have not had any disagreements with our certified public accountants
with respect to accounting practices or procedures of financial disclosures.

Item  8A.     Controls and Procedures

     As of the end of the period  covered  by this  report,  we  carried  out an
evaluation,  under the  supervision  and with the  participation  of management,
including  our chief  executive  officer  and chief  financial  officer,  of the
effectiveness  of the  design  and  operation  of our  disclosure  controls  and
procedures  as  defined  in Rules  13a-15(e)  and  15d-15(e)  of the  Securities
Exchange Act of 1934.  Based upon that evaluation,  our chief executive  officer
and  chief  financial  officer  concluded  that  our  disclosure   controls  and
procedures  are  effective  to cause the  material  information  required  to be
disclosed  by us in the reports that we file or submit under the Exchange Act to
be  recorded,  processed,  summarized  and  reported  within  the  time  periods
specified in the SEC's rules and forms.  There have been no significant  changes
in our internal  controls or in other factors which could  significantly  affect
internal controls subsequent to the date we carried out our evaluation.

Item  8B.     Other Information

     Not applicable.

                                    PART III

Item  9.      Directors,  Executive  Officers,  Promoters  and Control  Persons;
              Compliance with Section 16(a) of the Exchange Act

     The following table sets forth the names, ages, and offices held by our
directors and executive officers:

                   Name            Age            Position
                   ----            ---            --------
         James T. Wheeler           41            President, and Director
         Lane S. Clissold           53            Vice President and Director
         Steven D. Moulton          42            Secretary/Treasurer and
                                                  Director
----------------------

     All directors hold office until the next annual meeting of stockholders and
until  their  successors  have been duly  elected  and  qualified.  There are no
agreements  with respect to the election of directors.  We have not  compensated
directors  for service on the board of directors or any committee  thereof,  but
directors are entitled to be reimbursed for expenses  incurred for attendance at
meetings of the board and any committee of the board.  However,  due to our lack
of funds,  the directors  will defer their expenses and any  compensation  until
such time as business warrants such expenses. As of the date hereof, no director
has accrued any expenses or compensation. Officers are appointed annually by the
board and each executive  officer  serves at the discretion of the board.  We do
not have any standing committees.

                                      -19-
<PAGE>

     No director,  officer,  affiliate or promoter of Jump'n Jax has, within the
past five years,  filed any bankruptcy  petition,  been convicted in or been the
subject of any pending criminal  proceedings,  or is any such person the subject
or any  order,  judgment,  or decree  involving  the  violation  of any state or
federal securities laws.

     All of our present directors have other full-time  employment or sources of
income and will routinely devote only such time to our business as necessary. It
is estimated that each director will devote less than ten hours per month to our
business activities.

     Currently,  there is no  arrangement,  agreement or  understanding  between
management  and  non-  management   stockholders   under  which   non-management
stockholders  may  directly  or  indirectly  participate  in  or  influence  the
management of our affairs. Present management openly accepts and appreciates any
input or suggestions  from  stockholders.  However,  the board is elected by the
stockholders and the  stockholders  have the ultimate say in who represents them
on the board.  There are no  agreements  or  understandings  for any  officer or
director  to resign at the  request  of another  person and none of the  current
offers or directors are acting on behalf of, or will act at the direction of any
other person.

     The business experience of each of the persons listed above during the past
five years is as follows:

     James  Todd  Wheeler  became a  director  and  President  of Jump'n  Jax in
September  2000. Mr. Wheeler earned a B.S. Degree in  communications  and public
relations  from the  University of Utah in 1991.  From 1991 to 1997, Mr. Wheeler
was a quality specialist and brokerage analyst with Fidelity  Investments retail
customer  services in Salt Lake City, Utah. From 1997 to 1998, Mr. Wheeler was a
loan officer with FirstPlus Freedom Mortgage and from 1998 to May 2000, he was a
retail loan officer with Premier Mortgage,  both companies being located in Salt
Lake  City.  From May 2000 to May 2004,  Mr.  Wheeler  was a sales  manager  for
Iworks,  Inc. in St.  George,  a company that assists  individuals in setting up
small,  home-based  businesses,  and from May 2004 to the present, he has been a
business startup  specialist for The Tax Club, also in St. George,  that assists
individuals in creating small  businesses.  Mr. Wheeler served as a director and
Vice  President  of Quazon Corp.  from  October 1997 to May 2001.  Quazon is now
known as Electronic Game Card, Inc.

     Lane S. Clissold  became a director and Vice President of Jump'n Jax in May
2004. Mr. Clissold served as President and a director of our parent corporation,
Draco, Inc. from August 1999 to March 2004. Mr. Clissold  graduated from Skyline
High School in Salt Lake City,  Utah in 1969. From 1969 until 1979, Mr. Clissold
worked for The Utah Department of Transportation in the construction engineering
and safety  departments.  During that time,  Mr.  Clissold  attended  Utah State
University,  The University of Utah and Brigham Young  University.  Mr. Clissold
graduated  from  BYU/DOT  in 1976 with a degree  in  engineering.  In 1977,  Mr.
Clissold bought Alpine Auto  Renovations  and currently  serves as its President
and co-owner.  Mr.  Clissold has been an officer and director of other  publicly
held  developmental  stage companies  including Sound Industries,  (Director and
President  from  January of 1995  until May of 1997);  Rotunda  Oil and  Mining,
(Director  and  President  from  November  1995 to  November  of  1998),  and is
currently a director and Secretary/Treasurer of Treasure Mountain Holdings, Inc.

     Steven D. Moulton became a director and Secretary/Treasurer of Jump' Jax in
September 2000. Mr. Moulton served as Secretary/Treasurer  and a director of our
parent  corporation,  Draco,  Inc. from August 1999 to March 2004.  Mr.  Moulton
graduated from Olympus High School in Salt Lake City, Utah in 1980. From 1984 to
1990,  he served as a director and  executive  officer of several  publicly-held
development  stage  companies   including  Safron,   Inc.   (director  and  Vice
President);  Sagitta  Ventures  (director and  President);  Jasmine  Investments


                                      -20-
<PAGE>

(director and President);  Java, Inc.  (Secretary/Treasurer  and director);  and
Onyx Holdings  Corporation  (director  and  President).  From 1991 to 1994,  Mr.
Moulton was a director and President of Omni International Corporation, which is
currently known as "Beachport  Entertainment  Corporation." From 1987 until 1991
he  was   President   and  director  of  Icon   Systems,   Inc.  and  served  as
Secretary/Treasurer  of the same company until his  resignation  on December 24,
1998.  From 1995 to July  1996,  he served as  director  and Vice  President  of
Wasatch International Corporation,  formerly Java, Inc. From February 1996 until
November,  1999 he served as the  President  and director of  InsiderStreet.com,
formerly Sierra Holding Group, Inc. Also since 1998, Mr. Moulton has managed his
personal real estate properties through Excel Properties, LLC.

     Since  December,  1997, Mr. Moulton has been associated with Rocky Mountain
Fudge Company, Inc. (director and Vice President),  a public candy company. From
December 1997 until June 2001,  Mr.  Moulton was the President and a director of
Quazon  Corp.,  a blank  check  company.  In June 2001,  Quazon  Corp.  acquired
Scientific Energy,  Inc., and Mr. Moulton resigned as an officer and director of
Quazon Corp.  at that time.  Quazon is now known as Electronic  Game Card,  Inc.
From December,  1997 until approximately September 1999, Mr. Moulton served as a
director and President of Bear Lake Recreation, Inc., a public snowmobile rental
company.  Also, from December 1997 to March 2004, Mr. Moulton was a director and
President  of XEBec  International,  Inc.,  a  company  looking  for a merger or
acquisition.   With  the  exception  of  Sagitta  Ventures,  Omni  International
Corporation,  Wasatch  International,  Icon Systems, Inc. and InsiderStreet.com,
formerly,  Sierra Holding Group, Inc, none of these companies was subject to the
reporting  requirements  of the  commission.  Mr.  Moulton  owned and operated a
Chem-Dry carpet cleaning franchise from 1991 to 1995.

Item  10.     Executive Compensation

     For the past three fiscal  years,  compensation  received by directors  was
paid by Draco for services to the corporation and not necessarily related to the
operation  of the  Jump'n  Jax  subsidiary.  It should be noted  that  effective
December 19, 2002, Steven D. Moulton, Lane S. Clissold and James T. Wheeler each
received 8,000  post-split  shares of Draco's common stock,  valued at $0.25 per
share ($2,000 per person),  as compensation for services  rendered to Draco. The
shares were registered on a Form S-8  registration  statement.  Also,  effective
December 30, 2003,  Messrs.  Moulton and Clissold each received 50,000 shares of
Draco's common stock,  valued at $0.25 per share, as  compensation  for services
rendered to Draco.  James T. Wheeler  received  30,000 shares of Draco's  common
stock,  valued at $0.25 per share,  as  compensation  for  services  rendered to
Draco. The shares were registered on a Form S-8 registration statement.

     During  the next  twelve  months,  we  anticipate  paying  compensation  to
management of approximately  $10,000. Of this amount,  approximately $7,500 will
be paid to Mr. Wheeler for  overseeing  the ongoing  operations of our business.
Also,  approximately  $2,500  will be paid to Mr.  Moulton  for  overseeing  the
administrative details of our company.

     We have not  issued or  granted  any  deferred  compensation  or  long-term
incentive plan awards to management  during the past two fiscal years.  Further,
no  member of  management  has been  granted  any  option or stock  appreciation
rights.

     There are no  employment  contracts,  compensatory  plans or  arrangements,
including  payments to be received from Jump'n Jax, with respect to any director
or  executive  officer  which  would in any way result in  payments  to any such
person  because of his or her  resignation,  retirement or other  termination of
employment  with Jump'n Jax, or its  subsidiaries,  any change in control,  or a
change in the person's responsibilities following a change in control of.

                                      -21-
<PAGE>
     There are no  agreements  or  understandings  for any director or executive
officer to resign at the request of another  person.  None of our  directors  or
executive  officers is acting on behalf of or will act at the  direction  of any
other person.

Item  11.     Security Ownership of Certain Beneficial Owners and Management and
              Related Stockholder Matters

     The following table sets forth  information,  to the best of our knowledge,
as of  February  22,  2005,  with  respect  to each  person  known  by us to own
beneficially more than 5% of the outstanding common stock, each director and all
directors and officers as a group.

Name and Address                           Amount and Nature of       Percent
of Beneficial Owner                        Beneficial Ownership      of Class(1)
--------------------                       --------------------      -----------
James T. Wheeler *                                 114,000             4.0  %
  511 East St. George Boulevard
  Suite No. 3
  St. George, Utah 84770

Lane S. Clissold *                               1,134,000            40.1 %
  3270 South 1100 West
  South Salt Lake, Utah 84119

Steven D. Moulton *                              1,146,300            40.6 %
  4848 S. Highland Dr., #353
  Salt Lake City, Utah  84117

All directors and officers                       2,394,300            84.8 %
  a group (3 persons)

      *  Director and/or executive officer

     Note:    Unless otherwise indicated in the footnotes below, we have been
              advised that each person above will have sole voting power over
              the shares indicated above.

     (1) Based upon 2,824,170 shares of common stock outstanding as of February
22, 2005.


Item  12.     Certain Relationships and Related Transactions

     We have not had any material  transactions during the past two fiscal years
with any officer, director, nominee for election as director, or any stockholder
owning greater than five percent (5%) of our outstanding  shares, nor any member
of the above referenced individuals' immediate family except as set forth below.

     One of our directors, Steven Moulton has periodically made various loans to
us as funds as  needed  to  cover  operating  expenses.  During  the year  ended
December 31, 2000,  Mr.  Moulton  loaned to us a total of $10,000 and during the
first half of 2004,  he made an  additional  loan of  $25,000.  In August  2004,
another director,  Lane Clissold, made a loan of $20,000 to the company pursuant
to the same terms as previous loans. At September 30, 2004, these loans totaling
$55,000  appeared on the balance  sheet of our  financial  statements  as a note
payable - related  party,  together  with  accrued  interest - related  party of
$7,361.  The notes are unsecured,  payable on demand and accrue  interest at the
rate of 10% per annum.

                                      -22-
<PAGE>

Potential Conflict of Interest

     We have no  formal  conflict  of  interest  policy in place  regarding  the
possibility of our entering into  transactions  with affiliates.  We lack such a
policy because we believe it highly unlikely that we will acquire or do business
with an entity in which members of our  management  have an ownership  interest,
directly or indirectly.  However,  in the event a related party  transaction did
arise,  it would  almost  certainly  be  ratified  by a  disinterested  board of
directors and,  possibly,  by the stockholders if deemed  necessary.  Management
intends do  whatever  is  necessary  to fully and  completely  comply  with Utah
corporate law relating to conflicting interest  transactions as set forth in the
Utah Revised Business Corporation Act.

     Additionally,  our officers and  directors  are subject to the "doctrine of
corporate  opportunities"  insofar as it applies  to a business  opportunity  or
transaction  in which Jump'n Jax has  indicated  an interest.  If any officer or
director  is  presented  with a business  opportunity  or  transaction  that may
conflict with a business interests  previously  identified by our company,  such
opportunity or transaction must be promptly  disclosed to the board of directors
and made  available to Jump'n Jax. In the event the board rejects an opportunity
or  transaction  so  presented,  and only in that event,  any of our officers or
directors may avail themselves of such an opportunity. Every effort will be made
to resolve any conflicts  that may arise in favor of Jump'n Jax. There can be no
assurance, however, that these efforts will be successful.

Item  13.     Exhibits

Exhibit No.       Exhibit Name
-----------       ------------
    3.1(1)        Articles of Incorporation
    3.2(1)        By-Laws
    4.1(1)        Instrument defining rights of holders (See Exhibit No. 3.1,
                  Articles of Incorporation)

--------------
     (1) Filed as exhibit to Form SB-2 registration statement filed September 9,
         2004.

Item 14.      Principal Accountants Fees and Services

     We do not  have an audit  committee  and as a result  our  entire  board of
directors performs the duties of an audit committee. Our board of directors will
approve in advance the scope and cost of the engagement of an auditor before the
auditor  renders audit and non-audit  services.  As a result,  we do not rely on
pre-approval policies and procedures.

     Audit Fees

     The aggregate fees billed by our  independent  auditors,  H J & Associates,
for  professional  services  rendered  for the  audit  of our  annual  financial
statements  included in this report and in our  registration  statement  on Form
SB-2 for the fiscal years ended  December 31, 2004 and 2003,  and for the review
of quarterly financial statements included in our registration statement for the
quarters ended June 30 and September 30, 2004 were $8,945.

                                      -23-
<PAGE>

     Audit Related Fees

     For the fiscal years ended  December 31, 2004 and 2003,  there were no fees
billed for  assurance and related  services by H J & Associates  relating to the
performance  of the audit of our  financial  statements  which are not  reported
under the caption "Audit Fees" above.

     Tax Fees

     For the fiscal years ended  December 31, 2004 and 2003,  there were no fees
billed by H J & Associates for tax compliance, tax advice and tax planning.

     We do not use H J & Associates for financial  information system design and
implementation. These services, which include designing or implementing a system
that  aggregates  source data  underlying the financial  statements or generates
information  that is  significant  to our  financial  statements,  are  provided
internally or by other service  providers.  We do not engage H J & Associates to
provide compliance outsourcing services.

     The board of directors has  considered the nature and amount of fees billed
by H J & Associates  and believes that the provision of services for  activities
unrelated  to  the  audit  is  compatible  with  maintaining  H J &  Associates'
independence.


                                      -24-
<PAGE>


                                   SIGNATURES

     In accordance  with Section 13 or 15(d) of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                       Jump'n Jax, Inc.



                                       By:     /S/ JAMES T. WHEELER
                                          --------------------------------------
                                               James T. Wheeler
                                               President and C.E.O.

Dated:   March 7, 2005

             In accordance with the Exchange Act, this report has been signed
below by the following persons on behalf of the Registrant and in the capacities
and on the dates indicated.
<TABLE>
<CAPTION>

           Signature                                     Title                         Date
           ---------                                     -----                         ----
<S>                                             <C>                                 <C>
                                                President, C.E.O. and               March 7, 2005
/S/ JAMES T. WHEELER                            Director
---------------------------------------
         James T. Wheeler


                                                Secretary/Treasurer and Director    March 7, 2005
/S/ STEVEN D. MOULTON                           Principal Accounting Officer
---------------------------------------
         Steven D. Moulton



/S/   LANE S. CLISSOLD                          Vice President and Director         March 7, 2005
---------------------------------------
         Lane S. Clissold
</TABLE>

                                                       -25-

<PAGE>





                                JUMP'N JAX, INC.

                              FINANCIAL STATEMENTS

                                December 31, 2004






                                       F-1

<PAGE>






                                                          C O N T E N T S



Report of Independent Registered Public Accounting Firm......................F-3

Balance Sheet............................................................... F-4

Statements of Operations.................................................... F-5

Statements of Stockholders' Equity (Deficit)................................ F-6

Statements of Cash Flows.................................................... F-7

Notes to the Financial Statements........................................... F-8


                                       F-2

<PAGE>







             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


Board of Directors
Jump'n Jax, Inc.
St. George, Utah


We have  audited  the  accompanying  balance  sheet of Jump'n  Jax,  Inc.  as of
December 31,  2004,  and the related  statements  of  operations,  stockholders'
equity (deficit), and cash flows for the years ended December 31, 2004 and 2003.
These financial  statements are the responsibility of the Company's  management.
Our responsibility is to express an opinion on these financial  statements based
on our audits.

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

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the financial position of Jump'n Jax, Inc. as of December
31,  2004 and the  results  of its  operations  and its cash flows for the years
ended  December  31,  2004 and 2003 in  conformity  with  accounting  principles
generally accepted in the United States of America.

The  accompanying  financial  statements  have been  prepared  assuming that the
Company  will  continue  as a  going  concern.  As  discussed  in  Note 2 to the
financial  statements,  the Company has had no significant  operating results to
date,  which raises  substantial  doubt about its ability to continue as a going
concern.  Management's  plans in regard to these  matters are also  described in
Note 2. The  financial  statements  do not  include any  adjustments  that might
result from the outcome of this uncertainty.



/s/ HJ & Associates, LLC
---------------------------
Salt Lake City, Utah
February 22, 2005

                                       F-3

<PAGE>
                                JUMP'N JAX, INC.
                                  Balance Sheet

                                     ASSETS

                                                                    December 31,
                                                                        2004
                                                                    -----------
CURRENT ASSETS
  Cash                                                              $    27,839
                                                                    -----------

    Total Current Assets                                                 27,839
                                                                    -----------

EQUIPMENT

  Equipment (net) (Note 5)                                                5,392
                                                                    -----------

    Total Equipment                                                       5,392
                                                                    -----------

    TOTAL ASSETS                                                    $    33,231
                                                                    ===========


                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES

   Accounts payable                                                 $     3,556
   Accrued interest payable-related party                                 7,361
   Note payable - related party (Note 4)                                 55,000
                                                                    -----------

     Total Liabilities                                                   65,917
                                                                    -----------

STOCKHOLDERS' EQUITY (DEFICIT)

   Common stock, $0.001 par value; 50,000,000 shares
    authorized; 2,824,170 shares issued and outstanding                   2,824
   Additional paid-in capital                                            (1,824)
   Accumulated deficit                                                  (33,686)
                                                                    -----------

     Total Stockholders' Equity (Deficit)                               (32,686)
                                                                    -----------

     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)           $    33,231
                                                                    ===========


   The accompanying notes are an integral part of these financial statements.


                                       F-4

<PAGE>

                                JUMP'N JAX, INC.
                            Statements of Operations

                                                         For the Years Ended
                                                            December 31,
                                                     --------------------------
                                                         2004           2003
                                                     -----------    -----------


REVENUES                                             $    12,381    $    10,441
                                                     -----------    -----------

EXPENSES

  Depreciation                                             3,427          3,427
  General and administrative                              38,313          6,354
                                                     -----------    -----------

      Total Expenses                                      41,740          9,781
                                                     -----------    -----------

INCOME (LOSS) FROM OPERATIONS                            (29,359)           660
                                                     -----------    -----------

OTHER EXPENSES

  Interest expense                                        (3,541)        (1,000)
                                                     -----------    -----------

       Total Other Expense                                (3,541)        (1,000)
                                                     -----------    -----------

NET LOSS                                             $   (32,900)   $      (340)
                                                     ===========    ===========

BASIC LOSS PER SHARE                                 $     (0.01)   $     (0.00)
                                                     ===========    ===========

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING          2,824,170      2,824,170
                                                     ===========    ===========





   The accompanying notes are an integral part of these financial statements.

                                       F-5

<PAGE>
<TABLE>
<CAPTION>

                                JUMP'N JAX, INC.
                  Statements of Stockholders' Equity (Deficit)
                           December 31, 2004 and 2003'




<S>                             <C>         <C>           <C>            <C>
Balance, December 31, 2002      2,824,170   $     2,824   $    (1,824)   $      (446)

Net loss for the year ended
December 31, 2003                    --            --            --             (340)
                              -----------   -----------   -----------    -----------

Balance, December 31, 2003      2,824,170         2,824        (1,824)          (786)

Net loss for the year ended
December 31, 2004                    --            --            --          (32,900)
                              -----------   -----------   -----------    -----------

Balance, December 31, 2004      2,874,170   $     2,824   $    (1,824)   $   (33,686)
                              ===========   ===========   ===========    ===========
</TABLE>










  The accompanying notes are an integral part of these financial statements. d-

                                       F-6

<PAGE>

                                JUMP'N JAX, INC.
                            Statements of Cash Flows

                                                            For the Years Ended
                                                                 December 31,
                                                            --------------------
                                                              2004        2003
                                                            --------   --------


CASH FLOWS FROM OPERATING ACTIVITIES

     Net loss                                               $(32,900)  $    (34)
     Adjustments  to reconcile net loss to
     net cash used by operating  activities:
       Depreciation                                            3,427      3,427
     Changes in operating assets and  liabilities:
       Increase in accrued interest                            3,541      1,000
       Increase in accounts payable                            3,556       --
                                                            --------   --------

         Net Cash Provided (Used) by Operating Activities    (22,376)     4,087
                                                            ========   ========

CASH FLOWS FROM INVESTING ACTIVITIES

       Net Cash Used by Investing Activities                    --         --
                                                            --------   --------

CASH FLOWS FROM FINANCING ACTIVITIES

       Proceeds from notes payable - related party            45,000       --

         Net Cash Provided by Financing Activities            45,000       --
                                                            --------   --------

NET INCREASE IN CASH                                          22,624      4,087

CASH AT BEGINNING OF PERIOD                                    5,215      1,128
                                                            --------   --------

CASH AT END OF PERIOD                                       $ 27,839   $  5,215
                                                            ========   ========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Cash paid for:

  Interest                                                  $   --     $   --
  Income taxes                                              $   --     $   --

SCHEDULE OF NON-CASH FINANCING ACTIVITIES







  The accompanying notes are an integral part of these financial statements.


                                       F-7

<PAGE>
                                 JUMP'N JAX, INC
                        Notes to the Financial Statements
                           December 31, 2004 and 2003

NOTE 1 -       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

               a. Organization

               Jump'n  Jax,  Inc.  (the  Company)  was  incorporated  as a  Utah
               Corporation  in March  2000.  The  Company is in the  business of
               equipment rental and the leasing of inflatable  bounce houses for
               parties and entertainment.

               b. Provision for Taxes

               Deferred  taxes  are  provided  on  a  liability  method  whereby
               deferred  tax  assets are  recognized  for  deductible  temporary
               differences and operating loss and tax credit  carryforwards  and
               deferred tax  liabilities  are recognized  for taxable  temporary
               differences.  Temporary  differences are the differences  between
               the  reported  amounts  of assets and  liabilities  and their tax
               bases.  Deferred tax assets are reduced by a valuation  allowance
               when,  in the opinion of  management,  it is more likely than not
               that some  portion or all of the  deferred tax assets will not be
               realized.  Deferred tax assets and  liabilities  are adjusted for
               the  effects  of  changes  in tax laws  and  rates on the date of
               enactment.

               Net deferred tax assets consist of the following components as of
               December 31, 2004 and 2003:
                                                 2004            2003
                                              -----------    -----------
                  Deferred tax assets:
                    NOL Carryover             $    12,300    $      --

                  Deferred tax liabilities:          --             --
                    Depreciation                     (645)        (1,100)

                  Valuation allowance              11,655           (400)

                  Net deferred tax asset      $      --      $      --
                                              ===========    ===========

               The income tax  provision  differs  from the amount of income tax
               determined  by applying  the U.S.  federal  and state  income tax
               rates of 39% to pretax income from continuing  operations for the
               years ended December 31, 2004 and 2003 due to the following:

                                                 2004            2003
                                              -----------    -----------

                  Book Income                 $    12,831    $     (135)
                  NOL Utilization                    --            (405)
                  State tax                           (39)          --
                  Valuation allowance              12,870          (540)
                                              -----------    ----------
                                              $      --      $      --
                                              ===========    ===========

               At  December  31,  2004,  the  Company  had  net  operating  loss
               carryforwards of approximately $31,000 that may be offset against
               future  taxable  income from the year 2004 through  2024.  No tax
               benefit has been  reported  in the  December  31, 2004  financial
               statements  since  the  potential  tax  benefit  is  offset  by a
               valuation allowance of the same amount.
                                       F-8

<PAGE>
                                JUMP'N JAX, INC.
                        Notes to the Financial Statements
                           December 31, 2004 and 2003

NOTE 1 -       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

               b. Provision for Taxes (Continued)

               Due to the change in ownership  provisions  of the Tax Reform Act
               of 1986, net operating loss  carryforwards for Federal income tax
               reporting  purposes are subject to annual  limitations.  Should a
               change in ownership occur, net operating loss  carryforwards  may
               be limited as to use in future years.

               c. Accounting Method

               The financial statements are prepared using the accrual method of
               accounting. The Company has elected a calendar year-end.

               d. Estimates

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

               e. Revenue Recognition

               Revenues are  recognized  when rentals of equipment are completed
               and  cash  is  received.  The  Company  rents-out   entertainment
               equipment for parties and other group gatherings. No products are
               sold and no inventory is on hand.

               f. Basic Loss Per Share

               The  computations  of basic  loss per share of  common  stock are
               based on the  weighted  average  number of shares of common stock
               outstanding  during the period of the financial  statements.  For
               the Years Ended December 31,

                                                        2004           2003
                                                      ---------     ---------
              Basic loss per share:
                 Numerator - net loss                 $ (32,900)    $   (340)
                 Denominator - weighted average
                  number of shares outstanding        2,824,170     2,824,170
                                                      ---------     ---------

                 Loss per share                       $   (0.00)    $   (0.00)
                                                      =========     =========




                                       F-9

<PAGE>



                                JUMP'N JAX, INC.
                        Notes to the Financial Statements
                           December 31, 2004 and 2003

NOTE 1 -       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

               g. Newly Issued Accounting Pronouncements

               On December 16, 2004 the FASB issued SFAS No. 123(R), Share-Based
               Payment,  which is an amendment to SFAS No. 123,  Accounting  for
               Stock-Based  Compensation.   This  new  standard  eliminates  the
               ability  to account  for  share-based  compensation  transactions
               using  Accounting   Principles  Board  ("APB")  Opinion  No.  25,
               Accounting for Stock Issued to Employees,  and generally requires
               such  transactions to be accounted for using a fair-value-  based
               method  and  the  resulting  cost  recognized  in  our  financial
               statements.  This new standard is  effective  for awards that are
               granted,  modified  or  settled  in cash in  interim  and  annual
               periods  beginning  after June 15, 2005.  In  addition,  this new
               standard  will apply to  unvested  options  granted  prior to the
               effective date. We will adopt this new standard effective for the
               fourth fiscal quarter of 2005,  and have not yet determined  what
               impact  this  standard  will have on our  financial  position  or
               results of operations. In November 2004, the FASB issued SFAS No.
               151,  Inventory  Costs - an amendment  of ARB No. 43,  Chapter 4.
               This  Statement  amends the  guidance  in ARB No. 43,  Chapter 4,
               "Inventory  Pricing,"  to clarify  the  accounting  for  abnormal
               amounts of idle facility  expense,  freight,  handling costs, and
               wasted  material  (spoilage).  Paragraph 5 of ARB 43,  Chapter 4,
               previously  stated  that ". . . under some  circumstances,  items
               such  as  idle  facility  expense,   excessive  spoilage,  double
               freight,  and  rehandling  costs may be so abnormal as to require
               treatment  as  current  period  charges.  . . ."  This  Statement
               requires that those items be recognized as current-period charges
               regardless of whether they meet the  criterion of "so  abnormal."
               In addition,  this  Statement  requires that  allocation of fixed
               production  overheads to the costs of  conversion be based on the
               normal capacity of the production  facilities.  This statement is
               effective  for  inventory  costs  incurred  during  fiscal  years
               beginning  after June 15, 2005.  Management  does not believe the
               adoption  of this  Statement  will  have any  immediate  material
               impact on the Company. In December 2004, the FASB issued SFAS No.
               152, Accounting for Real Estate Time- sharing Transactions, which
               amends  FASB  statement  No.  66,  Accounting  for  Sales of Real
               Estate,  to reference  the  financial  accounting  and  reporting
               guidance  for real  estate  time-  sharing  transactions  that is
               provided in AICPA  Statement of Position  (SOP) 04-2,  Accounting
               for Real Estate  Time-Sharing  Transactions.  This statement also
               amends FASB  Statement No. 67,  Accounting  for Costs and Initial
               Rental  Operations  of Real  Estate  Projects,  to state that the
               guidance for (a) incidental  operations and (b) costs incurred to
               sell  real  estate   projects  does  not  apply  to  real  estate
               time-sharing  transactions.  The accounting for those  operations
               and costs is subject to the guidance in SOP 04-2.  This Statement
               is effective for financial  statements for fiscal years beginning
               after June 15,  2005.  Management  believes  the adoption of this
               Statement will have no impact on the financial  statements of the
               Company. In December 2004, the FASB issued SFAS No.153,  Exchange
               of Nonmonetary  Assets.  This Statement addresses the measurement
               of exchanges of nonmonetary  assets.  The guidance in APB Opinion
               No. 29, Accounting for Nonmonetary Transactions,  is based on the
               principle that exchanges of nonmonetary assets should be measured
               based on the fair value of the assets exchanged.  The guidance in
               that  Opinion,  however,  included  certain  exceptions  to  that
               principle. This Statement amends Opinion 29 to eliminate the


                                      F-10

<PAGE>
                                JUMP'N JAX, INC.
                        Notes to the Financial Statements
                           December 31, 2004 and 2003

NOTE 1 -       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

               g. Newly Issued Accounting  Pronouncements  (Continued) exception
               for  nonmonetary  exchanges  of  similar  productive  assets  and
               replaces it with a general exception for exchanges of nonmonetary
               assets  that do not have  commercial  substance.  A  nonmonetrary
               exchange has commercial substance if the future cash flows of the
               entity are  expected to change  significantly  as a result of the
               exchange.  This  Statement is effective for financial  statements
               for  fiscal  years  beginning   after  June  15,  2005.   Earlier
               application is permitted for nonmonetary asset exchanges incurred
               during fiscal years beginning after the date of this statement is
               issued.  Management  believes the adoption of this Statement will
               have no impact on the financial  statements  of the Company.  The
               implementation of the provisions of these  pronouncements are not
               expected  to  have  a   significant   effect  on  the   Company's
               consolidated  financial  statement  presentation.  h. Advertising
               Expense

               The Company expenses  advertising costs as incurred.  Advertising
               expense for the years ended  December  31, 2004 and 2003  totaled
               $3,934 and $2,887, respectively.

NOTE 2 -       GOING CONCERN

               The Company's financial  statements are prepared using accounting
               principles  generally  accepted  in the United  States of America
               applicable to a going concern which  contemplates the realization
               of assets and  liquidation of liabilities in the normal course of
               business.  The Company has not established revenues sufficient to
               cover its  operating  costs and allow it to  continue  as a going
               concern.   Management  intends  to  increase  operations  through
               expanding  its  operations  into other  locals,  in the  interim,
               management and primary  shareholders are committed to meeting the
               Company minimal operating expenses.

NOTE 3 -       STOCK TRANSACTIONS

               In April,  2004,  the Company's  Board of Directors  authorized a
               forward split of 941.390 to 1. Also on, January 7, 2005 the Board
               of Directors  authorized a forward split of 3 to 1. The financial
               statements  have  been  retroactive  restated  to  reflect  these
               forward splits.

NOTE 4 -       RELATED PARTY TRANSACTIONS

               As needed,  the Company's  officers and directors have loaned the
               Company  funds to cover  operating  expenses.  These loans accrue
               interest at 10%, are  unsecured  and are due upon  demand.  As of
               December 31, 2004, these officers have loaned the Company a total
               of $55,000.

                                      F-11

<PAGE>
                                JUMP'N JAX, INC.
                        Notes to the Financial Statements
                           December 31, 2004 and 2003

NOTE 5 -       FIXED ASSETS

               In May 2000, the Company  purchased  inflatable  "bounce-houses,"
               shown  below  as  rental  equipment,   which  are  rented-out  to
               customers  for  parties,   gatherings,   etc.  The  equipment  is
               depreciated over a 7-year life using the straight-line  method of
               depreciation.  The Company  purchased an  automobile in May 2000,
               which  has  a  5-year  depreciable  life.   Depreciation  on  the
               automobile is also computed using the straight-line method. Fixed
               assets  and  accumulated  depreciation  for  the  period  are  as
               follows:

                                                             December 31,
                                                                2004

               Rental equipment                              $    13,626
               Automobile                                          7,403
               Accumulated depreciation                          (15,637)
                                                             -----------

                         Total                               $     5,392

               Depreciation  expense for the years ended  December  31, 2004 and
               2003 was $3,427 and $3,427, respectively.






                                      F-12