----

| x | QUARTERLY      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|---------------------------------------------------------------------------------------------|

| o | TRANSITION      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|----------------------------------------------------------------------------------------------|

| Minnesota                                                           | 41-1853993                                      |
|---------------------------------------------------------------------|-------------------------------------------------|
| (State      or Other Jurisdiction of Incorporation or Organization) |  (I.R.S.      Employer Identification No.) |

| 6950      Central Highway, Pennsauken, NJ     | 08109           |
|-----------------------------------------------|-----------------|
| (Address      of principal executive offices) | (Zip      Code) |

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

----

| PART      I         | FINANCIAL      INFORMATION                                      |   |        |
|---------------------|-----------------------------------------------------------------|--------|--------|
|                |                                                            |   |   |
|  Item      1.  | Financial      Statements                                       |   | 1      |
|                |                                                            |   |   |
|  Item      2.  | Management's      Discussion and Analysis or Plan of Operation  |   | 24     |
|                |                                                            |   |   |
|  Item      3.  | Quantitative      and Qualitative Disclosures About Market Risk |   | 26     |
|                |                                                            |   |   |
|  Item      4T. | Controls      and Procedures                                    |   | 26     |
|                |                                                            |   |   |
| PART      II        |                                                            |   |   |
|                |                                                            |   |   |
|  Item      5.  | Other      Information                                          |   | 27     |
|                |                                                            |   |   |
|  Item      6.  |  Exhibits                                                  |   | 28     |
|                |                                                            |   |   |
| EXHIBIT      INDEX  |                                                            | 28     |

----

|                                                                                                           | Page No.      |
|----------------------------------------------------------------------------------------------------------------|---------------|
| Consolidated      Balance Sheets as at March 31, 2009 and December 31, 2008      (Unaudited)                   | 2             |
| Consolidated      Statements of Operations Three Months Ended March 31, 2009 and 2008      (Unaudited)         | 3             |
| Consolidated      Statements of Stockholders' Deficiency For the Period Ended March 31, 2009      (Unaudited)  |        4 |
| Consolidated      Statements of Cash Flows For the Three Months Ended March 31, 2009 and      2008 (Unaudited) | 5-6           |
| Notes      to Unaudited Consolidated Financial Statements                                                      |   7 |

----

| POWER      SPORTS FACTORY, INC.  |
|----------------------------------|
| CONSOLIDATED      BALANCE SHEETS |
| (Unaudited)                      |

|                                                                  |   | March      31,2009 |        |   | December      31,2008 |   |
|------------------------------------------------------------------|--------|--------------------|-------------|--------|-----------------------|--------|
| ASSETS                                                           |   |               |        |   |                  |   |
| Current      Assets:                                             |   |               |        |   |                  |   |
| Cash                                                             |   | $                  | 111         |   |                  | $      | 117 |   |
| Accounts      receivable                                         |   |               | 51,845      |   |                  |   | 67,749 |   |
| Inventory                                                        |   |               | 1,630,612   |   |                  |   | 1,735,181 |   |
| Prepaid      expenses                                            |   |               | 92,527      |   |                  |   | 97,363 |   |
| Total      Current Assets                                        |   |               | 1,775,095   |   |                  |   | 1,900,410 |   |
|                                                             |   |               |        |   |                  |   |   |   |
| Property      and equipment-net                                  |   |               | 22,891      |   |                  |   | 25,135 |   |
|                                                             |   |               |        |   |                  |   |   |   |
| Other      assets                                                |   |               | 11,100      |   |                  |   | 9,876 |   |
|                                                             |   |               |        |   |                  |   |   |   |
| TOTAL      ASSETS                                                |   | $                  | 1,809,086   |   |                  | $      | 1,935,421 |   |
|                                                             |   |               |        |   |                  |   |   |   |
| LIABILITIES AND      STOCKHOLDERS' DEFICIENCY                    |   |               |        |   |                  |   |   |   |
|                                                             |   |               |        |   |                  |   |   |   |
| Current      Liabilities:                                        |   |               |        |   |                  |   |   |   |
| Accounts      payable                                            |   | $                  | 3,740,254   |   |                  | $      | 3,554,654 |   |
| Accounts      payable to related party                           |   |               | 50,007      |   |                  |   | 28,383 |   |
| Notes      payable to related party                              |   |               | 15,863      |   |                  |   | 22,863 |   |
| Current      portion of long-term debt                           |   |               | 883,532     |   |                  |   | 387,882 |   |
| Convertible      debt                                            |   |               | 340,979     |   |                  |   | 501,356 |   |
| Accrued      expenses                                            |   |               | 1,452,935   |   |                  |   | 1,226,211 |   |
| Dividends      Payable                                           |   |               | 673,176     |   |                  |   | 673,176 |   |
| Customer      deposit payable                                    |   |               | 51,628      |   |                  |   | 52,774 |   |
|                                                             |   |               |        |   |                  |   |   |   |
| Total      Current Liabilities                                   |   |               | 7,208,374   |   |                  |   | 6,447,299 |   |
|                                                             |   |               |        |   |                  |   |   |   |
| Long      term liabilites:                                       |   |               |        |   |                  |   |   |   |
| Long-term      debt - less current portion                       |   |               | -           |   |                  |   | 7,370 |   |
| Convertible      debt - less current portion                     |   |               | 12,010      |   |                  |   | 24,323 |   |
| Total      Long-Term Liabilities                                 |   |               | 12,010      |   |                  |   | 31,693 |   |
|                                                             |   |               |        |   |                  |   |   |   |
| TOTAL      LIABILITIES                                           |   |               | 7,220,384   |   |                  |   | 6,478,992 |   |
|                                                             |   |               |        |   |                  |   |   |   |
| Stockholders'      Deficiency:                                   |   |               |        |   |                  |   |   |   |
| Preferred      stock; no value - authorized                      |   |               |        |   |                  |   |   |   |
| 50,000,000      shares, Series B Convertible Preferred           |   |               |        |   |                  |
| Stock      - outstanding  -0- shares at March 31, 2009 |   |               | -           |   |                  |   | - |   |
| and      -0- shares at December 31, 2008                         |   |               |        |   |                  |   |   |   |
| Common      stock, no par value - authorized                     |   |               |        |   |                  |   |   |   |
| 100,000,000      shares                                          |   |               |        |   |                  |   |   |   |
| outstanding 39,327,854      shares at March 31, 2009 and    |   |               |        |   |                  |
| 31,375,188  shares      at December 31, 2008           |   |               | 5,679,549   |   |                  |   | 5,476,228 |   |
| Additional      paid-in capital                                  |   |               | 456,000     |   |                  |   | 456,000 |   |
| Deficit                                                          |   |               | (11,546,848 | )      |                  |   | (10,475,799 | ) |
|                                                             |   |               |        |   |                  |   |   |   |
| Total      Stockholders' Deficiency                              |   |               | (5,411,299  | )      |                  |   | (4,543,571 | ) |
|                                                             |   |               |        |   |                  |   |   |   |
| TOTAL      LIABILITIES AND                                       |   |               |        |   |                  |   |   |   |
| STOCKHOLDERS'      DEFICIENCY                                    |   | $                  | 1,809,086   |   |                  | $      | 1,935,421 |   |

----

| POWER      SPORTS FACTORY, INC.            |
|--------------------------------------------|
| CONSOLIDATED      STATEMENTS OF OPERATIONS |
| (Unaudited)                                |

|                                                        |   | Three      Months Ended |       |
|-------------------------------------------------------------|--------|-------------------------|------------|
|                                                        |   | March      31, 2009     |       |   | March      31, 2008 |   |
| Net      sales                                              |   | $                       | 132,189    |   |   | $ | 493,088 |   |
|                                                        |   |                    |       |   |   |   |   |   |
| Costs      and Expenses:                                    |   |                    |       |   |   |   |   |   |
| Cost      of sales                                          |   |                    | 151,593    |   |   |   | 435,172 |   |
| Selling,      general and administrative expenses           |   |                    | 886,388    |   |   |   | 1,394,965 |   |
| Non-cash      compensation                                  |   |                    | 73,321     |   |   |   | - |   |
| Bad      debt expense                                       |   |                    | 7,871      |   |   |   | - |   |
|                                                        |   |                    | 1,119,173  |   |   |   | 1,830,137 |   |
|                                                        |   |                    |       |   |   |   |   |   |
| Loss      from operations                                   |   |                    | (986,983   | ) |   |   | (1,337,049 | ) |
|                                                        |   |                    |       |   |   |   |   |   |
| Other      income and  expenses:                  |   |                    |       |   |   |   |   |   |
| Acretion      of beneficial conversion feature              |   |                    | (12,313    | ) |   |   | - |   |
| Interest      expense                                       |   |                    | (71,753    | ) |   |   | (28,431 | ) |
| Interest      income                                        |   |                    | -          |   |   |   | 10 |   |
|                                                        |   |                    | (84,066    | ) |   |   | (28,421 | ) |
|                                                        |   |                    |       |   |   |   |   |   |
| Loss      before benefit from income taxes             |   |                    | (1,071,049 | ) |   |   | (1,365,470 | ) |
|                                                        |   |                    |       |   |   |   |   |   |
| Income      tax benefit                                     |   |                    | -          |   |   |   | - |   |
|                                                        |   |                    |       |   |   |   |   |   |
| Net  loss                                         |   | $                       | (1,071,049 | ) |   | $ | (1,365,470 | ) |
|                                                        |   |                    |       |   |   |   |   |   |
| Loss      per common share - basic and diluted              |   | $                       | (0.03      | ) |   | $ | (0.05 | ) |
| Weighted      average common shares - Basic anddiluted |   |                    | 37,531,818 |   |   |   | 28,133,247 |   |

----

|                                                                                                    |   |      |       |   |   |   |       | Common      Stock |   |   | Additional |   |   |    |      |   |      |   |
|---------------------------------------------------------------------------------------------------------|--------|-----------|------------|--------|--------|--------|------------|-------------------|--------|--------|------------|--------|--------|---------|-----------|--------|-----------|--------|
|                                                                                                    |   | Preferred |       |   | Stated |   |       |              |   |   | Stated     |   |   | Paid-In |      |   |      |   |   |   |   |
|                                                                                                    |   | Stock     |       |   | Value  |   |       | Shares            |   |   | Value      |   |   | Capital |      |   | (Deficit) |   |   | Total |   |
| Balance      at January1, 2008                                                                          |   |      | 2,303,216  |   |   |   | 2,687,450  |              |   |   | 4,925,213  |   |   |    | 2,216,485 |   |      |   | 355,000 |   |   |   | (6,605,465 | ) |   |   | (1,346,530 | ) |
|                                                                                                    |   |      |       |   |   |   |       |              |   |   |       |   |   |    |      |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Effect      of one for twenty reverse stock split                                                       |   |      |       |   |   |   |       |              |   |   |       |   |   |    |      |   |      |   |   |   |   |   |   |   |   |   | - |   |
| Issuance      of preferred stock for services (valued at $2.50 to      $7.00  per share) |   |      | 39,103     |   |   |   | 63,543     |              |   |   |       |   |   |    |      |   |      |   |   |   |   |   |   |   |   |   | 63,543 |   |
| Issuance      of 200,000 warrants                                                                       |   |      |       |   |   |   |       |              |   |   |       |   |   |    | 80,000    |   |      |   |   |   |   |   |   |   |   |   | 80,000 |   |
| Conversion      of preferred stock into common stock                                                    |   |      | (2,342,319 | )      |   |   | (2,750,993 | )                 |   |   | 23,423,190 |   |   |    | 2,750,993 |   |      |   |   |   |   |   | - |   |   |   | - |   |
| Issuance      of common stock for debt (valued at $.08 per share)                                       |   |      |       |   |   |   |       |              |   |   | 1,262,500  |   |   |    |      |   |      |   | 101,000 |   |   |   |   |   |   |   | 101,000 |   |
| Issuance      of common stock for services (valued at $.10 to $.70)                                     |   |      |       |   |   |   |       |              |   |   | 1,214,285  |   |   |    | 178,750   |   |      |   |   |   |   |   |   |   |   |   | 178,750 |   |
| Conversion      of debt for common stock (valued at $.08 to $.45)                                       |   |      |       |   |   |   |       |              |   |   | 550,000    |   |   |    | 250,000   |   |      |   |   |   |   |   |   |   |   |   | 250,000 |   |
| Net      loss for the twelve months ended December 31,2008                                              |   |      | -          |   |   |   |       |              |   |   |       |   |   |    |      |   |      |   |   |   |   |   | (3,870,334 | ) |   |   | (3,870,334 | ) |
|                                                                                                    |   |      |       |   |   |   |       |              |   |   |       |   |   |    |      |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at December 31,2008                                                                        |   |      | -          |   |   |   | -          |              |   |   | 31,375,188 |   |   |    | 5,476,228 |   |      |   | 456,000 |   |   |   | (10,475,799 | ) |   |   | (4,543,571 | ) |
|                                                                                                    |   |      |       |   |   |   |       |              |   |   |       |   |   |    |      |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of common stock for fees (valued at $.02 to $.05 pershare)                                |   |      |       |   |   |   |       |              |   |   | 260,000    |   |   |    | 12,800    |   |      |   |   |   |   |   |   |   |   |   | 12,800 |   |
|                                                                                                    |   |      |       |   |   |   |       |              |   |   |       |   |   |    |      |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of common stock for expenses (valued at $.02 per share)                                   |   |      |       |   |   |   |       |              |   |   | 526,000    |   |   |    | 10,521    |   |      |   |   |   |   |   |   |   |   |   | 10,521 |   |
|                                                                                                    |   |      |       |   |   |   |       |              |   |   |       |   |   |    |      |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of common stock for incentives (valued at $.05 per share)                                 |   |      |       |   |   |   |       |              |   |   | 1,000,000  |   |   |    | 50,000    |   |      |   |   |   |   |   |   |   |   |   | 50,000 |   |
|                                                                                                    |   |      |       |   |   |   |       |              |   |   |       |   |   |    |      |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Conversion      of debt for common stock (valued at $.02 to $.03 pershare)                              |   |      |       |   |   |   |       |              |   |   | 6,166,666  |   |   |    | 130,000   |   |      |   |   |   |   |   |   |   |   |   | 130,000 |   |
|                                                                                                    |   |      |       |   |   |   |       |              |   |   |       |   |   |    |      |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss for the three months ended March 31, 2009                                                 |   |      |       |   |   |   |       |              |   |   |       |   |   |    |      |   |      |   |   |   |   |   | (1,071,049 | ) |   |   | (1,071,049 | ) |
|                                                                                                    |   |      |       |   |   |   |       |              |   |   |       |   |   |    |      |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at March 31, 2009                                                                          |   |      | -          |   |   | $      | -          |              |   |   | 39,327,854 |   |   | $       | 5,679,549 |   |      | $      | 456,000 |   |   | $ | (11,546,848 | ) |   | $ | (5,411,299 | ) |

----

| POWER      SPORTS FACTORY, INC.            |
|--------------------------------------------|
| CONSOLIDATED      STATEMENTS OF CASH FLOWS |
| (Unaudited)                                |

|                                                                                                  |   | Three      Months Ended |       |
|-------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|
|                                                                                                  |   | March      31, 2009     |       |   | March      31, 2008 |   |
| CASH      FLOW FROM OPERATING ACTIVITIES:                                                             |   |                    |       |   |   |   |
| Net      loss                                                                                         |   | $                       | (1,071,049 | ) |   |   | (1,365,470 | ) |
| Adjustments      to reconcile net loss  to net cash used in operating      activities: |   |                    |       |   |   |   |   |   |
| Depreciation      and amortization                                                                    |   |                    | 2,244      |   |   |   | 2,471 |   |
| Non      cash compensation                                                                            |   |                    | 73,321     |   |   |   | 125,462 |   |
| Accretion      of beneficial conversion feature                                                       |   |                    | 12,313     |   |   |   | 50,542 |   |
| Changes      in operating assets and liabilities                                                      |   |                    | 688,110    |   |   |   | 919,328 |   |
| Net      cash used in operating activities                                                            |   |                    | (295,061   | ) |   |   | (267,667 | ) |
|                                                                                                  |   |                    |       |   |   |   |   |   |
| CASH      FLOW FROM INVESTING ACTIVITIES:                                                             |   |                    |       |   |   |   |   |   |
| Securiy      deposit                                                                                  |   |                    | (1,224     | ) |   |   |   |   |
| Purchase      of equipment                                                                            |   |                    | -          |   |   |   | (1,312 | ) |
| Net      cash provided by investing activities                                                        |   |                    | (1,224     | ) |   |   | (1,312 | ) |
|                                                                                                  |   |                    |       |   |   |   |   |   |
| CASH      FLOW FROM FINANCING ACTIVITIES:                                                             |   |                    |       |   |   |   |   |   |
| Payment      to note payable related party                                                            |   |                    | (7,000     | ) |   |   | - |   |
| Proceeds      from loan payable                                                                       |   |                    | 522,500    |   |   |   | 81,667 |   |
| Payments      on loan                                                                                 |   |                    | (219,221   | ) |   |   | (56,534 | ) |
| Proceeds      from convertible debt                                                                   |   |                    |       |   |   |   | 250,000 |   |
|                                                                                                  |   |                    |       |   |   |   |   |   |
| Net      cash provided by  financing activities                                             |   |                    | 296,279    |   |   |   | 275,133 |   |

----

| POWER      SPORTS FACTORY, INC.                        |
|--------------------------------------------------------|
| CONSOLIDATED      STATEMENTS OF CASH FLOWS (continued) |
| (Unaudited)                                            |

|                                                                                |   | Three      Months Ended |    |
|-------------------------------------------------------------------------------------|--------|-------------------------|---------|
|                                                                                |   | March      31, 2009     |    |   | March      31, 2008 |   |
| Net      increase (decrease) in cash                                                |   |                    | (6      | ) |   |   | 6,154 |   |
|                                                                                |   |                    |    |   |   |   |   |   |
| Cash      - beginning of period                                                     |   |                    | 117     |   |   |   | 11,146 |   |
|                                                                                |   |                    |    |   |   |   |   |   |
| Cash      - end of period                                                           |   | $                       | 111     |   |   | $ | 17,300 |   |
|                                                                                |   |                    |    |   |   |   |   |   |
| Changes      in operating assets and liabilities consists      of:             |   |                    |    |   |   |   |   |   |
|       Decrease      (increase) in accounts receivable |   | $                       | 15,903  |   |   | $ | (49,128 | ) |
|       Decrease      (increase) in inventory           |   |                    | 104,569 |   |   |   | 48,670 |   |
|       Decrease      (increase) in prepaid expenses    |   |                    | 4,836   |   |   |   | (100,582 | ) |
|        Increase      in accounts payable         |   |                    | 207,224 |   |   |   | 871,768 |   |
|        Increase      in accrued expenses         |   |                    | 356,724 |   |   |   | 148,600 |   |
|      (      Decrease) increase in customer deposits        |   |                    | (1,146  | ) |   |   | - |   |
|                                                                                |   | $                       | 688,110 |   |   | $ | 919,328 |   |
|                                                                                |   |                    |    |   |   |   |   |   |
| Supplementary      information:                                                     |   |                    |    |   |   |   |   |   |
|   Cash      paid during the year for:                                     |   |                    |    |   |   |   |   |   |
|      Income      taxes                                     |   | $                       | -       |   |   | $ | - |   |
|      Interest                                              |   | $                       | 37,924  |   |   | $ | 10,503 |   |
|                                                                                |   |                    |    |   |   |   |   |   |
| Non-cash      financing activities                                                  |   |                    |    |   |   |   |   |   |
|     Issuance      of preferred stock for services               |   | $                       | -       |   |   | $ | 45,462 |   |
|     Issuance      of warrants for services                      |   | $                       | -       |   |   | $ | 80,000 |   |
|     Issuance      of common stock for services                  |   | $                       | 73,321  |   |   |   | - |   |
|     Issuance      of common stock for debt                      |   | $                       | 130,000 |   |   |   | - |   |

----

| 1. | Description      of Business and Summary of Significant Accounting  Policies |
|----|------------------------------------------------------------------------------|

----

----

----

----

| 2. | Inventories |
|----|-------------|

|                       |   | March      31, |      |   | December      31, |   |
|----------------------------|--------|----------------|-----------|--------|-------------------|--------|
|                       |   | 2009           |      |   | 2008              |   |
| Motor      bikes           |   | $              | 1,237,795 |   |              | $      | 1,339,802 |   |
| Parts                      |   |           | 142,818   |   |              |   | 145,379 |   |
| Deposits      on Inventory |   |           | 250,000   |   |              |   | 250,000 |   |
|                       |   | $              | 1,630,613 |   |              | $      | 1,735,181 |   |

----

| 3. | Property      and Equipment |
|----|-----------------------------|

|                                |   | March      31, |   |   | December      31, |   |
|-------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                |   | 2009           |   |   | 2008              |   |
| Equipment                           |   | $              | 41,898 |   |              | $      | 41,898 |   |
| Signs                               |   |           | 7,040  |   |              |   | 7,040 |   |
| Software                            |   |           | -      |   |              |   | - |   |
|                                |   |           | 48,938 |   |              |   | 48,938 |   |
| Less:      accumulated depreciation |   |           | 26,047 |   |              |   | 23,803 |   |
|                                |   | $              | 22,891 |   |              | $      | 25,135 |   |

----

| 4. | Long-term      debt |
|----|---------------------|

|                                                      |   | March      31, |    |   | December      31, |   |
|-----------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                                      |   | 2009           |    |   | 2008              |   |
| Note      payable to Five Point                           |   |           |    |   |              |   |
|   Capital      Inc. due May 2011;               |   |           |    |   |              |   |
|   interest      at 18.45%; monthly              |   |           |    |   |              |   |
|   payments      of $397                         |   | $              | -       |   |              | $      | 10,461 |   |
|                                                      |   |           |    |   |              |   |   |   |
| Note      payable due April 30, 2008;                     |   |           |    |   |              |   |   |   |
|   interest      at 10% payable at               |   |           |    |   |              |   |   |   |
|   maturity      (1)                             |   |           | 68,645  |   |              |   | 68,645 |   |
|                                                      |   |           |    |   |              |   |   |   |
| Note      payable to Cananwill, Inc due                   |   |           |    |   |              |   |   |   |
|   August      1, 2009, interest at 8.84%;       |   |           |    |   |              |   |   |   |
|   monthly      payments of $7,027               |   |           | 54,393  |   |              |   | 54,393 |   |
|                                                      |   |           |    |   |              |   |   |   |
| Note      payable to Cananwill, Inc. due                  |   |           |    |   |              |   |   |   |
|   August      1, 2009, interest at 8.59%        |   |           |    |   |              |   |   |   |
|   monthly      payments of $2,807               |   |           | 21,753  |   |              |   | 21,753 |   |
|                                                      |   |           |    |   |              |   |   |   |
| Note      payable to BankDirect                           |   |           |    |   |              |   |   |   |
|   due      January 12, 2010; interest at 8%     |   |           |    |   |              |   |   |   |
|   Monthly      payments of $2,333               |   |           | 22,500  |   |              |   | - |   |
|                                                      |   |           |    |   |              |   |   |   |
| Note      payable to Crossroads Financial due             |   |           |    |   |              |   |   |   |
| January      9, 2010, interest 21% plus fees,             |   |           |    |   |              |   |   |   |
| monthly      payments variable                            |   |           | 476,240 |   |              |   | - |   |
|                                                      |   |           |    |   |              |   |   |   |
| Note      payable due June 15, 2008;                      |   |           |    |   |              |   |   |   |
|   interest      at 20.0% simple interest with a |   |           |    |   |              |   |   |   |
|   private      investor(s) (5)                  |   |           | 240,000 |   |              |   | 240,000 |   |
|                                                      |   |           | 883,532 |   |              |   | 395,252 |   |
| Less      amounts due within one year                     |   |           | 883,532 |   |              |   | 387,882 |   |
|                                                      |   | $              | -       |   |              | $      | 7,370 |   |

| 1) | On      July 31, 2007, the Company borrowed $80,000 from an      investor.  The note matured on April 30, 2008 at which time      the principal amount plus ten percent interest was due. The maturity      date was extended to May 30, 2008 and then extended to October 1, 2008.      The Company issued 10,000 shares of the Company’s common stock valued at      $3,000, as additional consideration with the loan, subsequent to March 31,      2008. On March 31, 2009 the balance on this note is $68,645. This note is      currently in default. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2) | On      April 15, 2008, the Company entered into a short term promissory note with      a private investor in the amount of $300,000.  The interest rate      is a simple twenty percent and the note matures on June 15, 2008. The      balance on this note is $240,000.  On March 12, 2009, the      Company issued 250,000 shares to the investor as compensation valued at      $12,500 for an extension on this loan until July 1,  1009. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3) | On      August 12, 2008, the Company entered into an interim inventory funding      arrangement with a distributor whereby the distributor has agreed to      acquire inventory of makes and models from the Company’s manufacturers      under the Andretti brand and finance them exclusively for the Company over      a ninety day period for and average cost of 3.333% per      month.  On August 26, 2008, the parties modified the agreement      to four percent fixed plus interest of one and one-tenth percent per month      after ninety days plus fees up to one hundred and eighty      days.  The Company also issued the distributor 250,000 shares of      its common stock valued at $62,500 as an additional      incentive.  The Company may utilize this arrangement up to one      million two hundred thousand dollars.  The distributor has the      right to acquire inventory at substantially favorable pricing if it      desires to sell the product in territories that the Company has no      dealers.  These transactions must be approved by the      Company.  The Company maintains product liability and warranty      responsibility on the entire inventory, as well as financing costs and      warehousing costs.  If the Company does not take possession of      the inventory at the end of any ninety day period, the distributor has the      right to sell them at cost.  The agreement is personally      guaranteed by a current officer of the Company and a former officer of the      Company. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4) | On      March 26, 2009, the Company entered into a premium finance agreement with      Bank Direct Capital Finance for the purchase of insurance.  The      total amount financed was $23,333, with and annual percentage rate of 8%      and monthly payments of $2,333. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5) | On      January 9, 2009, the Company entered into a revolving credit loan (the      “Credit Facility”) with Crossroads Debt LLC, a private investment company      (the “Lender”).  The loan is for a term of one year which is      renewable under certain conditions and in the amount of $1,000,000.       Terms under the agreement include and origination fee of one and one-half      percent,  interest of one and three-quarters percent per month, a      collateral management fee of one-half percent a month, an advance rate of      fifty percent of cost, which includes supplier invoice, freight and      customs, with a maturity on advances of one hundred and twenty days, audit      fees, a minimum outstanding balance requirement of three hundred and fifty      thousand dollars and an early termination fee of seven thousand five      hundred dollars per month for every month still outstanding in the      term.  The Lender has a first security interest in all accounts,      chattel paper, goods (including inventory and equipment), instruments,      investment property, documents, and general intangibles, letter of credit      rights, commercial tort claims, deposit accounts, and the proceeds thereof      via Uniform Commercial Code Filing Position.   As of March      31, 2009, the outstanding balance on this line of  $476,240. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2009                 |   | $      | 883,532 |   |
|----------------------|--------|--------|---------|--------|
| 2010                 |   |   | -       |   |
| 2011                 |   |   | -       |   |
|                 |   |   | 883,532 |   |
| Current      portion |   |   | 883,532 |   |
|                 |   | $      | -       |   |

| 5. | Convertible      Debt |
|----|-----------------------|

----

| 6. | Note      Receivable/Note Payable - RelatedParty |
|----|--------------------------------------------------|

|  | a) | During      2008 and 2007, certain officers of the Company made advances to the      Company.  After repayment to the officers, the balance due the      officers as of March 31, 2009, and December 2008, were $15,863 and      $22,863, respectively.  Two of the advances are interest free      and all are due upon demand.  Interest expense for the three      months ended March 31, 2009, and 2008 were $133 and $118      respectively. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | Accrued      Expenses |
|----|-----------------------|

|                     |   | March      31, |      |   | December      31, |   |
|--------------------------|--------|----------------|-----------|--------|-------------------|--------|
|                     |   | 2009           |      |   | 2008              |   |
| Payroll      expense     |   | $              | 207,003   |   |              | $      | 167,902 |   |
| Payroll      tax expense |   |           | 417,978   |   |              |   | 379,572 |   |
| Penalties                |   |           | 643,647   |   |              |   | 486,903 |   |
| Professional      fees   |   |           | 11,000    |   |              |   | 50,438 |   |
| Interest      expense    |   |           | 172,883   |   |              |   | 141,296 |   |
| Other                    |   |           | 424       |   |              |   |   |   |
|                     |   | $              | 1,452,935 |   |              | $      | 1,226,111 |   |

----

| 8. | Stockholders’      Equity |
|----|---------------------------------|

|  | a) | On      August 6, 2008, the Company converted a $250,000 note payable and accrued      interest of $25,000 into 550,000 commonshares. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------|

|  | b) | On      August 20, 2008, the company retained a consultant to provide equity      research services.  The Consultant was compensated 75,000 common      shares for these services valued at$18,750. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | c) | On      August 26, 2008, the Company issued a distributor 250,000 shares of common      stock valued at $62,500. |
|--|----|------------------------------------------------------------------------------------------------------------------|

|  | d) | On      August 28,2008, the Company paid compensation to a staffing company for      providing sales personnel for a total of $20,000, which was paid $10,000      in cash and 14,285 shares of common stock valued at    $10,000. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | e) | On      September 25, 2008, the Company retained a consultant to provide long      range investor relations planning.  The consultant was      compensated 250,000 shares of common stock valued at $25,000 for these      services. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | f) | On      September 29, 2008, an officer and director of the company, converted      $40,000 of debt into 500,000 shares of common  stock. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------|

|  | g) | On      September 29, 2008, an officer and director of the company, converted      $21,000 of debt into 262,500 shares of common  stock. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | h) | On      September 29, 2008, a consultant of the Company converted $40,000 of debt      into 500,000 shares of commonstock. |
|--|----|----------------------------------------------------------------------------------------------------------------------------|

|   | i) | On      October 1, 2008, the Company issued 125,000 shares of common stock to a      lender valued at $22,500. |
|--------|----|----------------------------------------------------------------------------------------------------------------|

|   | j) | On      October 21, 2008, the Company entered into an agreement with a firm to      provide the Company with capital restructuring and corporate financing      advise.  Te firm was compensated 500,000 shares of common stock      valued at $40,000. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | k) | On      January 7, 2009, a creditor converted $90,000 of debt into 4,500,000      shares of common stock. |
|--|----|-----------------------------------------------------------------------------------------------------------|

|   | l) |  On      January 7, 2009, an officer and director converted $10,520 into 526,000      shares of common stock. |
|--------|----|--------------------------------------------------------------------------------------------------------------------|

|  | m) | On      January 7, 2009, a creditor converted $20,000 of debt into 1,000,000      shares of common stock. |
|--|----|-----------------------------------------------------------------------------------------------------------|

|  | n) | On      February 12, 2009, an officer converted $21,000 into 666,666 shares of      common stock. |
|--|----|---------------------------------------------------------------------------------------------------|

|  | o) | On      March 9, 2009, the company issued 1,000,000 shares of common stock to a      senior sales executive as a retention incentive package valued at      $50,000. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | During      2007, the Company sold 54,000 shares of Series B Convertible Preferred      Stock and received proceeds of$270,000. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------|

|   | b) | During      2007, the Company issued 333,316 shares of Series B Convertible Preferred      Stock in exchange for the liquidation of $1,663,000 of Company      debt. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | During      2007, the Company issued 265,900 shares of Series B Convertible Preferred      Stock for services with a fair value of  $726,950. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | d) | On      January 18, 2008, the Company retained a firm to provide management      consulting, business advisory, shareholder information and public relation      services. The term of the agreement is one year. The Company issued 35,000      Series B Convertible shares for services to be performed with a fair value      $43,750 and pays $2,500 per month as compensation under the      agreement. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | On      March 24, 2008, the Company issued 389 shares of Series B Convertible      Preferred Stock for services valued at$1,712. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------|

|   | f) | On      April 1, 2008, the Company retained a marketing consultant for      $15,000.  On April 21, 2008, the consultant agreed to convert      his payable into 3,000 shares of Series B Convertible    Shares. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g) | On      April 24, 2008, the Company paid compensation to staffing company for      providing permanent accounting personnel for a total of $10,272, which was      paid $7,191 in cash and 514 shares of Series B Convertible Preferred      Shares. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h) | On      May 16, 2008, the Company issued MCMC, LLC. 200 shares of Series B      Convertible Preferred Shares. |
|--------|----|---------------------------------------------------------------------------------------------------------------|

|   | i) | On      March 30, 2009, the Company sold 428,750 shares of common stock to an      investor for $15,000. |
|--------|----|----------------------------------------------------------------------------------------------------------|

| 9. | Income      Taxes |
|----|-------------------|

| 11. | Warrants |
|-----|----------|

----

|                                 |   |   |    |   |           |   |   | Weighted         |   |   |      |   |
|--------------------------------------|--------|--------|---------|--------|----------------|--------|--------|------------------|--------|--------|-----------|--------|
|                                 |   |   |    |   | Weighted       |   |   | Average          |   |   | Aggregate |   |
|                                 |   |   |    |   | Average        |   |   | Remaining        |   |   | Intrinsic |   |
| Warrants                             |   | Shares |    |   | Exercise Price |   |   | Contractual Term |   |   | Value     |   |
| Outstanding      at January 1, 2009  |   |   | 200,000 |   |           | $      | 0.01   |             |   |   | 9.5       |   |   |   |   |
| Granted                              |   |   | -       |   |           |   | -      |             |   |   |      |   |   | $ | - |   |
| Exercised                            |   |   | -       |   |           |   | -      |             |   |   |      |   |   |   |   |   |
| Forfeited,      expired or cancelled |   |   | -       |   |           |   | -      |             |   |   |      |   |   | $ | - |   |
|                                 |   |   |    |   |           |   |   |             |   |   |      |   |   |   |   |   |
| Outstanding      at March 31, 2009   |   |   | 200,000 |   |           | $      | 0.01   |             |   |   | 9.5       |   |   |   |   |   |
|                                 |   |   |    |   |           |   |   |             |   |   |      |   |   |   |   |   |
| Exercisable      at March 31, 2009   |   |   | 200,000 |   |           | $      | 0.01   |             |   |   | 9.5       |   |   |   |   |   |

| a. | Dividend      Payable |
|----|-----------------------|

| 13.  | Commitments      and Contingencies |
|-----------|------------------------------------|

|   | a) | On      April 1, 2007, the Company hired two consultants to provide transition      management services, business planning, managerial systems analysis, sales      and distribution assistance and inventory management systems      services.  Both contracts are each $15,000 per month and can be      terminated at will when the Company decides that the services have been      completed and/or are no longer necessary.  One contract ceased      on May 15, 2008.  The other contract ceased on August 15      2008. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | b) | On      May 15, 2007, the Company entered into an exclusive licensing agreement      with Andretti IV, LLC, a Pennsylvanian limited liability company to brand      motorcycles and scooters.  The term of the agreement is through      December 31, 2017.  Royalties under the agreement are tied to      motorcycle and scooter sales branded under the “Andretti      line”.  The agreement calls for a minimum annual      guarantee.  After year two of the agreement, if the Company does      not sell a certain minimum number of motorcycles and scooters under the      “Andretti Line” it may elect to terminate the licensing agreement. A      minimum payment of $250,000 was due under the agreement on March 31,      2008.  A minimum payment of $250,000 is also due on July 31,      2008.  These two payments totaling $500,000 represent the minimum      annual guarantee owed to Andretti IV LLC for 2008.  In addition,      after certain volume targets are met, Andretti IV LLC receives a per bike      fee.  A consultant working for the Company co-guaranteed the minimum      annual guarantee for the first two years and receives a 4.1667% of the      license fees as a fee throughout the life of the license related to that      work. The consultant subsequently became an officer and director of the      Company.  On January 1, 2008, the Company issued a warrant to      Andretti IV, LLC, pursuant to their May 15, 2007 agreement, to purchase      200,000 common shares following the effectiveness of the Reverse Split at      an exercise price equal to $.01 per share.  The warrant expires      December 31, 2017.  The Company issued the warrant as part of the      consideration to Andretti IV LLC in connection with the original license      agreement signed in May 2007.  The Company paid $50,000 as a      licensing fee in 2007.  The Company has paid $50,000 in 2008. The      warrant has been accounted for in the financial  statements. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | c) | On      June 1, 2007, the Company hired Steven A. Kempenich as its Chief Executive      Officer and a director of the Company.  His contract is a      two-year agreement at $16,666 per month.  On August 14, 2008, he      was terminated for cause. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | d) | On      October 11, 2007, the Company retained a firm to provide corporate      communications and investor relations.  The agreement is for one      year which automatically renews unless either party elects to terminate      the agreement with a notice of termination no later than sixty days prior      to the end of the term.  Fees for these services are $5,000 per      month and 20,000 shares of common stock.  Fees are earned but      deferred until the seventh month at which time the deferred fees are paid      in equal amounts along with the current fees as they are      incurred.  The Company paid $24,000 as consulting fees in 2007      of which $14,000 was paid with 1,000 shares of preferred      stock. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | e) | Effective      January 1, 2008, the Company entered into a monthly agency retainer      agreement with a marketing and advertising firm to provide the company      with services at a fee of $25,000 per month. This agreement ceased at the      end of May, 2008. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | f) | On      January 18, 2008, the Company retained a firm to provide management      consulting, business advisory, shareholder information and public relation      services.  The term of the agreement is one year.  The      Company issued 35,000 Series B Convertible shares and pays $2,500 per      month as compensation under theagreement. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | g) | On      May 14, 2008, the Company signed an agreement with Road America Motor      Club, Inc., to provide a 24 hour road-side assistance program to Andretti      motorbike ovners.  The agreement commenced as of April 1, 2008      and continues for an initial term of two years, or until terminated by      either party according to the terms of the agreement.  The      Company pays for the enrollment of each bike properly entered into the      company warranty program for a period of one year subject to term and      conditions. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h) | On      June 27, 2008, the Company entered into a second licensing agreement with      Andretti IV, LLC, to further utilize the name Andretti in the branding and      sale of its Yamati brand line.  The term of the agreement is through      December 31, 2018.  Royalties under the agreement are tied to      motorcycle and scooter sales branded under the “Andretti Yamati      line”.  The agreement calls for a Minimum Annual      Guarantee.  Minimum payment of $45,000 was due on September 30,      2008.  A minimum payment of $45,000 is also due on December 31,      2008.  These payments have not been made.  After year two      of the agreement, if the Company does not sell a certain minimum number of      motorcycles and scooters under the “Andretti Yamati Line” it may elect to      terminate the licensing agreement. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i) | On      July 16, 2008, the Company entered into contracts with a storage company      to provide warehousing and logistics services on the west coast of the      United States.  This contract requires fees for storage and      handling of our motor bike inventory which are incurred monthly on a per      bike basis. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | j) | On      August 15, 2008, the Company hired Shawn Landgraf as the chief executive      officer.  His salary is $156,000 per year.  He does      not have a contract at this time.  Landgraf is also the      president of Magnus Partners, Inc., which has provided services to the      Company in the past and is currently owed  $115,342. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | k) | On      October 1, 2008, the Company entered into a premium finance agreement with      Cananwill Inc., for the purchase of additional insurance.  The      total amount financed was 67500, with an annual percentage rate of 8.84%      and monthly payments of $7,026.50. This contract was terminated on March      1, 2009.  There is an outstanding balance of      $54,393. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | l) | On      October 1, 2008, the Company entered into a premium finance agreement with      Cananwill Inc., for the purchase of additional insurance.  The      total amount financed was $27000, with an annual percentage rate of 8.59%      and monthly payments of $2,807.44.  This contract was terminated      on March 1, 2009.  There is an outstanding balance of      $21,753. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | m) | On      October 23, 2008, the Company entered into an exclusive distribution      agreement with Eurospeed, Inc., to distribute its Andretti product line to      new and used automotive dealers in the U. S. and Canada.  The      agreement calls for an initial purchase of six hundred units before      November 30, 2008 and a minimum of seventy-five hundred units over the      first twelve months of the agreement.  The Company’s      manufacturer has agreed to supply Eurospeed with product in the event that      the Company defaults under its manufacturing agreement.  The      initial purchase date had been extended to December 30,      2008.  As of April, 2009 Eurospeed has not placed an initial      order due to financing constraints.  This agreement has      expired. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | n) | On      January 20, 2009, the Company entered into a modification of its licensing      agreement with Andretti IV, LLC, for payments due for the year      2008.  As of December 31, 2008, PSF had a balance of $540,000      due to Andretti IV, LLC.  Under the restructuring agreement, PSF      made a commitment to pay $250,000 by February 6, 2009, agreed to execute a      note for $87,000 due March 30, 2009, and convert $58,000 into 1,000,000      shares of common stock.  Upon receipt of the payments, and      payment in full of the note, Andretti IV, LLC, agreed to forgive the      remaining balance due for 2008.  On April 24, 2009, the Company      made a $50,000 payment towards this agreement.  The balance of      the agreementis  pending. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o) | On      March 31, 2009, the Company subleased a portion of its warehouse space at      its headquarters.  The sublease is on a month-to-month basis for      6,000 square feet at a monthly rate including CAM charges of      $3,250. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.  | Subsequent      Events |
|-----------|------------------------|

|  | a) | On      April 6, the Company sold 2,000,000 shares of common stock to an investor      for $100,000. |
|--|----|------------------------------------------------------------------------------------------------------|

|  | b) | On      April 24, 2009, the Company borrowed $25,000 from an investor on a short      term basis.  The interest rate is ten percent.  The      loan is personally guaranteed by an officer and director of the company      and is due May 24, 2009. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | c) | On      April 24, 2009, the Company sold 1,000,000 shares of common stock to an      investor for $50,000. |
|--|----|------------------------------------------------------------------------------------------------------------|

|  | d) | On      April 28, 2009, the Company converted $90,000 of debt into 1,250,000      shares of common stock. |
|--|----|-----------------------------------------------------------------------------------------------------------|

----

|  | e) | On      May 11, 2009, the Company converted $292,049 comprised of $240,000 in      principal and $52,049 in accrued interest into 4,163,487 shares of common      stock. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f) | On      May 11, 2009, the company converted $252,310 of accounts payable due to      its manufacturing supplier into 4,604,428 shares of common      stock. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Date                   |   | Title      and Amount  (1)                                                    |   | Purchaser               |   | PrincipalUnderwriter |   | Total      Offering Price/Underwriting      Discounts |
|------------------------|--------|-----------------------------------------------------------------------------------------|--------|-------------------------|--------|----------------------|--------|-------------------------------------------------------|
| January      7, 2009   |   | 4,500,000      shares of common stock issued in conversion of $90,000 of      debt.     |   | Private      investor.  |   | NA                   |   | $90,000/NA                                            |
| January      7, 2009   |   | 526,000      shares of common stock issued in conversion of $10,520 of      debt.       |   | Corporate      officer  |   | NA                   |   | $10,520/NA                                            |
| January      7, 2009   |   | 1,000,000      shares of common stock issued in conversion of $20,000 of      debt.     |   | Private      investor.  |   | NA                   |   | $20,000/NA                                            |
| February      12, 2009 |   | 666,666      shares of common stock                                                     |   | Corporate      officer. |   | NA                   |   | $21,000/NA                                            |
| March      9, 2009     |   | 1,000,000      shares of common stock issued to employee as a retention      incentive. |   | Employee.               |   | NA                   |   | $50,000/NA                                            |
| March      30, 2009    |   | 428,750      shares of common stock.                                                    |   | Private      investor.  |   | NA                   |   | $15,000/NA                                            |

----

----

| 31.1  | Certification      of Chief Executive Officer Pursuant to Section 302 of The Sarbanes      Oxley Act of 2002. |
|------------|---------------------------------------------------------------------------------------------------------------|

| 31.2  | Certification      of Chief Financial Officer Pursuant to Section 302 of The Sarbanes      Oxley Act of 2002. |
|------------|---------------------------------------------------------------------------------------------------------------|

| 32.1  | Certification      of Chief Executive Officer Pursuant to      18  U.S.C.  Section  1350 as adopted      pursuant to Section 906 of the Sarbanes-Oxley Oxley Act of      2002. |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.2  | Certification      of Chief Financial Officer Pursuant to      18  U.S.C.  Section  1350 as adopted      pursuant to Section 906 of the Sarbanes-Oxley Oxley Act of      2002. |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     | POWER      SPORTS FACTORY, INC.(Registrant) |                                         |
|--------------------------|---------------------------------------------|----------------------------------------------|
|                     |                                        |                                         |   |
| Dated:      May 20, 2009 | By:                                         | /s/  Shawn      Landgraf           |   |
|                     |                                        | Shawn      Landgraf, Chief Executive Officer |   |

| Exhibit      Number |   | Description                                                                                                                                                                                                             |
|---------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1                |   | Certification  of      Chief Executive Officer Pursuant to Section 302 of the Sarbanes Oxley Act      of 2002.                                                                                                |
|                |   |                                                                                                                                                                                                                    |
| 31.2                |   |  Certification  of      Chief Financial Officer Pursuant to Section 302 of the Sarbanes Oxley Act      of 2002.                                                                                          |
|                |   |                                                                                                                                                                                                                    |
| 32.1                |   |  Certification      of Chief Executive Officer Pursuant to      18  U.S.C.  Section 1350 as adopted pursuant to      Section  906 of the Sarbanes-Oxley Oxley Act of      2002. |
|                |   |                                                                                                                                                                                                                    |
| 32.2                |   |  Certification      of Chief Financial Officer Pursuant to      18  U.S.C.  Section 1350 as adopted pursuant to      Section  906 of the Sarbanes-Oxley Oxley Act of      2002. |

----