UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION

                            Washington, D.C. 20549

                                 FORM 10-KSB

         (Mark one)
[X] ANNUAL REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the fiscal year ended September 30, 2007

[  ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE
ACT OF 1934

For the transition period from ________ to ________

Commission file number: 333-68570

                       Cycle Country Accessories Corp.
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(Name of small business issuer in its charter)

             Nevada                            42-1523809
 ---------------------------------    -------------------------------
(State or other jurisdiction of     (IRS Employer Identification No.)
   incorporation or organization)

                    1701 38th Avenue West, Spencer, Iowa 51301
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                    (Address of principal executive offices)

                            (712) 262-4191
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                     (Issuer's telephone number)

Securities registered under Section 12(g) of the Exchange Act:

Common Stock, par value $0.0001 per share
--------------------------------------------------------
                           (Title of class)

Check whether the issuer (1) filed all reports required to be filed
by Section 13 or 15(d) of the  Exchange  Act during the past 12
months (or for such shorter period that the registrant was required
to file such reports),  and (2) has been subject to such filing
requirements for the past 90 days. Yes  [X]   No [  ]

Check if there is no disclosure of delinquent filers in response to
Item 405 of Regulation S-B is not contained in this form, and no
disclosure will be contained, to the best of 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].

Indicate by checkmark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act).
   Yes [   ]  No [X]

The Company's revenues for the year ended September 30, 2007 were
$14,214,250.

As of December 19, 2007, the aggregate market value of the voting
stock held by non-affiliates of the registrant (based on a closing
price of $1.71 per share held by non-affiliates on December 19,
2007) was $6,544,002.

The number of shares of the registrant's common stock, par value
$0.0001 per share, outstanding as of December 19, 2007 was
6,006,415.

Transitional Small Business Disclosure Format (check one): Yes [  ];
No [X]

<PAGE>


PART I.

Item 1.  DESCRIPTION OF THE BUSINESS

GENERAL

	Cycle Country Accessories Corp. (a Nevada corporation) was
incorporated in the State of Nevada on August 15, 2001 as a C
corporation.  On August 21, 2001, we entered into an agreement to
purchase all of the outstanding common stock of Cycle Country
Accessories Corp. (an Iowa corporation) for $4,500,000 in cash and
1,375,000 shares of our common stock.  Cycle Country Accessories
Corp. (an Iowa corporation) was originally incorporated on August 8,
1983 and is headquartered in Spencer, Iowa.  In addition, on August
14, 2001, Cycle Country Accessories Corp. (an Iowa corporation)
merged with Okoboji Industries Corporation.  Okoboji Industries
Corporation manufactured the plastic wheel covers for what is
considered our Plastic Wheel Cover segment.  As a result of these
transactions we are the Successor Company to the business of both
companies.

      In March of 2002, Perf-Form Products, Inc. was purchased for a
total purchase price of approximately $528,800.  In June of 2002,
the Company purchased Weekend Warrior for 10,000 shares of common
stock.

	On April 29, 2005 we acquired Simonsen Iron Works, Inc., which
had been our largest supplier of fabricated steel parts for total
consideration of $7,000,000 in cash and $8,000,000 worth of our
common stock.  We believe that our partnership with Simonsen has
been a key to the success of our Company as working with this vendor
allowed us to maintain the highest quality parts at the most
economical cost.  Going forward as one company will allow us to
bring products to market sooner, reduce costs by streamlining
production processes, and reducing overhead to maximize profits,
while maintaining our high quality product standard.

       On November 14, 2007 the company sold its Milford, Iowa
property to the company's founders, Jim and Jan Danbom in exchange
for all of their Cycle Country common shares.  The total number of
shares was 1,410,730 with a value on the closing date of the
transaction of $2,581,636.  The company now leases approximately 90%
of the facility from the Danboms under a three year triple net
lease that contains two one year renewal options.  The annual lease
cost is $185,104 payable in monthly installments.  The company
placed the common shares acquired into treasury stock to be used
at a later date for acquisitions, mergers, or major capital
additions that may arise in the future.

	We are one of the world's largest manufacturers of accessories
for all terrain vehicles ("ATVs").  We manufacture a complete line
of branded products, including snowplow blades, lawnmowers,
spreaders, sprayers, tillage equipment, winch mounts, utility boxes,
oil filters and oil coolers, baskets and an assortment of other ATV
accessory products.  These products custom fit essentially all ATV


<PAGE>

models from Honda, Yamaha, Kawasaki, Suzuki, Polaris, Arctic Cat,
Bombardier, and others.  We design, engineer, assemble, and
manufacture a majority of the accessory products at our Spencer
facility.  Our Milford facility serves as our light manufacturing,
warehousing, and shipping facility.  We completed the relocation of
our corporate headquarters during the first quarter of fiscal 2007
to our Spencer facility from our Milford facility.

	We are recognized as a leader in the manufacturing of high
quality ATV accessory products.  This reputation has enabled us to
develop key, long-term relationships with ATV manufacturers and
distributors.  We sell our products to 9 distributors in the United
States, most of which have sold our products continuously for the
past 26 years.  The distributors call on and sell Cycle Country
products to virtually every ATV dealer in North America.  Similar
strategic arrangements have also been developed internationally.  We
currently have 11 international distributors distributing our
products to over 30 countries.

       We are also the largest manufacturer of golf car hubcaps in the
world. We estimate that we maintain 70% of the original equipment
manufacturer ("OEM") hubcap business.  We have always sold directly
to golf car manufacturers and we also have an excellent distribution
network that reaches the after market throughout the United States,
Europe and Asia.

       We are continuing our growth in the lawn and garden industry
with our Weekend Warrior products.  Our market research continues to
tell us that the manufacturers of garden tractors and utility
vehicles need accessories similar to those available in the ATV
industry.  Our pull-behind products, 3-point implements, and other
branded and private label accessories can be used with lawn and
garden tractors and utility vehicles.  We sell our products to
several equipment manufacturers, dealers and retail outlets within
the lawn and garden and utility vehicle markets.  We continue to
work with other manufacturers, dealers, and retail outlets to
introduce these accessories into their product lines.

       Additionally, we are successfully continuing to provide
contract manufacturing services at our Spencer facility to outside
manufacturers.  We intend to continue growing this market by
promoting the capabilities and unique manufacturing processes the
Spencer facility can provide to other manufacturers.

	Our three largest customers accounted for approximately 33% of
our net sales in the year ended September 30, 2007.  All three
customers have represented a significant amount of our business
every year for the past 21 years.  While the percentage of total net
sales these customers represent should decrease as our sales grow in
other areas, such as Weekend Warrior, we do anticipate these
customers will continue to represent a significant amount of our
business.

<PAGE>

INDUSTRY OVERVIEW

       ATV Accessories:

       In today's ATV market there are several OEM's competing for
market share.  Honda has been the world leader followed by Polaris,
Yamaha, Kawasaki, Suzuki, Arctic Cat and Bombardier.  According to
the Motorcycle Industry Council (MIC) and Powersports Business, in
2006 there were approximately 968,000 ATV's sold worldwide.  This
represented about a 3% decrease from 2005.  2007 worldwide ATV sales
are forecasted to drop nearly 5% from 2006 figures, ending at about
920,000 units according to MIC, Powersports Business and A.G.
Edwards & Sons estimates.  While traditional OEMs are seeing flat to
little growth, low-cost nontraditional Asian ATV imports are growing
in double-digits with 150,000 to 200,000 units sold for 2005 and
could make up about 20% of the industry according to Powersports
Business and other industry sources.  According to Baird Research
71% of all units sold are Utility, 21% are Sport Quads, and 8% are
in the Youth category.  We consider the Utility Division to be our
target market.


       Wheel Covers:

       The golf car industry continues to expand each year and is
currently dominated by E-Z-Go, Club Car and Yamaha. Global, Par Car
and a few other OEM's compete for the remainder of the market.  We
estimate that we maintain 70% of the OEM hubcap business and are the
largest manufacturer of golf car hubcaps in the world.  We have
always sold directly to all the golf car manufacturers and we have
an excellent distribution network throughout the United States,
Europe and Asia to reach the after market.

       Weekend Warrior (Lawn and Garden):

       According to The Outdoor Power Equipment Institute over 1
million new lawn and garden tractors are sold each and every year.
New U.S. UTV sales in 2006 were approximately 250,000, according to
Powersports Business and industry sources.  Utility vehicle sales
continue to be in the double-digits, with North American UTV sales
expected to crack the 300,000-unit barrier in 2008, according to
Power Products Marketing (PPM).  John Deere, Polaris, Yamaha, and
Kawasaki are the market leaders, with Arctic Cat, Kubota and other
major lawn and garden and construction OEMs in the UTV market, per
Powersports Business and industry sources.  We make accessories that
fit all of the major OEM UTV models, plus others.  We sell our
products to several equipment manufacturers, dealers and retail
outlets within the lawn and garden and utility vehicle markets.  We
continually work with other manufacturers, dealers, and retail
outlets to introduce these accessories into their product lines.


<PAGE>

       Contract Manufacturing:

       This business segment was formally created during the first
quarter of fiscal 2006 by management to monitor and manage the
expansion of our contract manufacturing services provided by our
Spencer facility, which was formerly Simonsen Iron Works.  With
ample production capacity and unique fabrication and painting
capabilities, management believes that increasing the fabrication of
parts and the manufacture of products to other Original Equipment
(OE) manufacturers and businesses, both regionally and nationally,
will also provide the company with a significant source of revenues
in quarters traditionally slow for our main ATV Accessories business
segment.


COMPANY HISTORY

       Cycle Country's market research has been a continued work in
process for the past 26 years and that work still continues today.
Our success was accomplished by constant market research and a
constant effort to adjust to the changes in the industry.  When we
started in the ATV accessory industry ATV's were much smaller.  They
were small 3-wheeled vehicles with two-wheel drive.  Today they are
powerful 4-wheel drive vehicles capable of doing many more tasks.
The ATV industry falls within both the recreational and machinery
industry depending on the product and consumer.  In 2006,
approximately 968,000 units were sold worldwide and there are well
over 3 million units on the market today.  Prospective ATV buyers
lean toward a new purchase because of the strides manufacturers have
made in product development.  Partly due to our line of utility
products the ATV manufacturers have focused their efforts to
incorporate four wheel drive and making larger ATV's for greater
hauling and work capacity.

       The idea for our business was born in 1981 when Jim Danbom
recognized that an ATV could be used to plow snow.  He manufactured
and sold 100 snowplow kits that year.  He sold more the next year
and then in 1983 decided to incorporate.  The business has grown
every year since.  Now in addition to snowplows, Cycle Country
manufactures and sells a full range of products designed for the new
and more powerful ATV's.  These products include mowers, sprayers,
spreaders, 3-point hitch, moldboard plow, disc harrow, furrower,
cultivator, rake, and row planter.  We also manufacture winches,
winch mounts, chains, gun racks, steel mesh baskets, a rear hitch,
and a very unique 5th wheel trailer.

       Over the last several years, we have expanded into
manufacturing injection molded wheel covers primarily for the golf
car industry.  We are now entering our fifth year in the lawn &
garden industry, utilizing some current products as well as creating
new items specifically for that industry.  Our acquisition five
years ago of Weekend Warrior, with its garden utility attachments
and retail customer base, has provided us with new products and new
markets within the lawn and garden industry.  Another acquisition
five years ago, Perf-Form Products, Inc., has provided the company
with a new line of premium oil filters and oil cooler products that
fit very well into our current marketing and distribution channels
and is providing us the opportunity to expand into the motorcycle,
aviation, and marine industries.

<PAGE>


       On April 29, 2005 we acquired Simonsen Iron Works, Inc., which
had been our largest supplier of fabricated steel parts for total
consideration of $7,000,000 in cash and $8,000,000 worth of our
common stock.  We believe that our partnership with Simonsen has
been a key to the success of our Company as working with this vendor
allowed us to maintain the highest quality parts at the most
economical cost.  Going forward as one company will allow us to
bring products to market sooner, reduce costs by streamlining
production processes, and reducing overhead to maximize profits,
while maintaining our high quality product standard.  This
acquisition has also created another source for the company to grow
by providing contract manufacturing to other OE manufacturers and
businesses.

       On November 14, 2007 the company sold its Milford, Iowa
property to the company's founders, Jim and Jan Danbom in exchange
for all of their Cycle Country common shares.  The company now
leases approximately 90% of the facility from the Danboms under a
three year triple net lease that contains two one year renewal
options.  The annual lease cost is $185,104 payable in monthly
installments.


PRODUCTS

       ATV Accessories

       We offer a complete line of ATV accessories.  Our products
enhance the functionality and versatility of the ATV.  The ATV was
initially designed as a recreational vehicle but is rapidly becoming
a multi-purpose vehicle serving both recreational and utility
functions.  Our products help ATV owners perform many of their
utility needs.  Research shows that approximately 71% of all the
ATV's currently sold are for these utility functions.  We offer a
standard one-year warranty on all products except snowplow blades,
on which we offer a limited lifetime warranty.

       Seven manufacturers dominate the ATV industry.  We manufacture
accessories for all of the major manufacturer's ATV models and most
smaller manufacturers.

       We manufacture, assemble, and package our products from high-
quality parts produced primarily at our Spencer facility.  The
following lists the major ATV accessory products and their
proportion of total sales of the ATV accessory segment for the year
ended September 30, 2007, which approximates 76% of total company
sales: (a) Blades: 58%, (b) Perf-Form oil filters and oil coolers:
4%, (c) Winches and Winch Mounting Kits: 3%, (d) Mowers: 2%, (e)
Tillage Equipment: 1%, (f) Sprayers: 1%, (g) Spreaders: 1%.  "Other"
products comprise the remaining 30% of our sales and comprises some
of the following: OEM products (including John Deere and Land
Pride): 11%, Golf car accessories: 3%, electric blade lift system:
2%, UTV (side by side units) accessories: 2%.

       Our major ATV accessory products include:

<PAGE>

Blades.

       We manufacture five sizes of steel straight blades, which
include 42", 48", 54", 60" and 72" models.  We also offer 52" and
60" State Plows and a Power Vee blade.  Our standard blade
configuration features a universal manual lift or a universal
electric lift.  The blades can also be lifted with a winch.  All of
our blades come standard with heavy-duty skids, heavy-duty trip
springs, and a limited lifetime warranty.   In 2007 we upgraded our
standard black straight blades to Teflon impregnated, textured paint
to improve the blade's performance.

Perf-Form Oil Filters and Oil Coolers

	We manufacture premium oil filters and oil coolers for
motorcycles and ATVs.  Our filters and coolers fit various models of
Harley-Davidson, Ducati, Honda, Yamaha, and other motorcycle and ATV
OEMs.  In addition, we make an oil filter for the aviation industry.
Our oil coolers reduce the running temperature of the oil which
industry sources indicate can extend the life of the engine
significantly.


Winches and Winch Mounts.

       We offer a complete line of electric winches and winch mounts
to fit all ATV models.  Models include 1,500, 2,000, 2,500 (new) and
3,000 pound capacity winches.  Our winch mounts are designed to
receive all of the major brands of ATV winches.

Mowers.

       We offer three mowing systems, the "Quicksilver 54 Finish Cut"
mower, the "Rough Cut 48" mower, and the "Rough Cut 44" mower.  The
Quicksilver 54 is a 54" finish cut mower that can be mounted to the
front of an ATV or towed behind any tractor or ATV.  It is powered
by an 11 horsepower Briggs & Stratton engine.  The Rough Cut 48 is a
48" mower that is designed to cut thick weeds and overgrown brush.
It's powered by a 13 horsepower engine by Briggs & Stratton and is
pulled behind the ATV.  The Rough Cut 44 is a smaller version of our
Rough Cut 48 and is new for 2007.  It features a 10 horsepower
Tecumseh engine.  The Rough Cuts offer an offset hitch, which allows
mowing to the left, right or directly behind the ATV.  The
Quicksilver 54 and Rough Cut 48 mowers are also available with Honda
engines.

Tillage Equipment.

       We manufacture a three-point hitch that transforms the ATV into
a small working tractor.  The three-point hitch is designed to fit
on most four-wheel drive ATVs.  The hitch is effective because it
locks in the rear suspension and has a built-in float to provide the
smooth operation of attached implements.  We have two three-point


<PAGE>

hitch models, one of which meets engineering standards for category
zero hitches and the other meets engineering standards for category
one hitches.  The hitch design allows the use of implements such as
a cultivator, moldboard plow, disc harrow, furrower, rake, one row
planter and a rear blade.  We manufacture and sell all of these
implements.

Sprayers.

       We offer rack-mounted sprayers in both 15 and 25-gallon sizes.
There are four different models of rack-mounted sprayers available
depending on spraying needs:  Econo Spot, Deluxe, Professional and
Ag-Commercial.  The sprayers can be purchased with either a 43" or
120" spray boom.  The sprayers mount easily and quickly on the rear
rack of an ATV.

Spreaders.

       We offer a 100-pound capacity hopper for front or rear
mounting.  This product is used for spreading everything from
fertilizer to seed to salt pellets for winter de-icing.  The
spreader's flow rate and spread pattern are adjustable.  Because the
main components are made from polypropylene and stainless steel, the
spreader will provide many years of reliable service.

Other.

       Additionally, we offer a wide array of products such as tire
chains, CV boot guards, spotlights, trailers, gun racks, steel mesh
baskets, and bed lift kits for various utility vehicles.

       Wheel Covers

       We are a leading producer of injection-molded plastic specialty
vehicle wheel covers for vehicles such as golf cars, riding lawn
mowers and light duty trailers.  This segment represents
approximately 14% of our total company sales.  Wheel cover products
include 6", 8", 10", and 12" sizes offered in both hot-stamped and
metalized options.  Styles include the Turbine, Sport Edition,
Maxam, the 'SS', and the new Beadlock A/T Wheel cover.  The 'SS'
continues to do very well in its second year of production.  The
Beadlock A/T has done very well in its first year of production and,
in fact, has rejuvenated our sales in the lawn mower market.  The
Beadlock has also crossed over into the UTV market and is becoming
popular as an affordable method to improve the look of  a UTV with
factory standard rims.  We plan to continue introducing other new
wheel covers modeled after classic automobile "mags".

       Weekend Warrior

       This segment, formerly known as our Lawn and Garden business
segment, contains products which feature pull-behind implements, 3-


<PAGE>

point implements, bed lifts, gun and tool racks, soft goods, and
other items designed and built primarily for utility vehicles
(UTVs), utility ATVs, as well as garden tractors.  Our products
enhance the functionality and versatility of these tractors and
utility vehicles.  This segment represents approximately 3% of our
total company sales.  Products include a 64" tandem disc, 60"
cultivator, 48 inch and, new for 2007, 44 inch brush cut mowers, 15
and 25 gallon sprayers, spotlight, gun and tool rack, soft goods,
bed lift, and a full line of three-point tillage equipment.  New for
fiscal 2007 was a universal blade system.  As growth in the lawn and
garden industry and utility vehicle industry continues this will
allow the company to address the seasonality of our ATV accessory
products by providing sales in quarters traditionally slow in our
main ATV Accessories business segment.

       Contract Manufacturing

       This business segment was formally created during the first
quarter of fiscal 2006 by management to monitor and manage the
expansion of our contract manufacturing services provided by our
Spencer facility, which was formerly Simonsen Iron Works.  This
segment represents approximately 12% of our total company sales.
With ample production capacity and unique fabrication and painting
capabilities, management believes that increasing the fabrication of
parts and the manufacture of products to other OE manufacturers and
businesses, regionally and nationally, will also provide the company
with a significant source of revenues in quarters traditionally slow
for our main ATV Accessories business segment.

PRODUCT DEVELOPMENT

       We have remained competitive and grown over the past years by
designing and marketing new products continually.  We employ an
experienced staff of six product design professionals that work with
CAD/CAM technology in the design of new products.  This Engineering
group serves two primary functions: product retrofitting and new
product design.  Retrofitting of existing products accounts for
roughly 50 percent of the engineers' time.  Product development
costs were 2% of net sales for fiscal 2007 and 1% for fiscal 2006.
Management considers the engineering group a critical factor to the
company's future and current success.

       New products introduced in 2007 included: the Beadlock A/T
Wheel cover, Weekend Warrior Universal Blade System, Safari Rack and
"Tough Kit" for the Yamaha Rhino, motorcycle carrier, the Rough Cut
44, a brush guard, steering column and other "bling" accessories for
E-Z-Go side-by-side units,  Teflon impregnated textured paint to
improve the performance of our black straight blades, and the Quick-
Attach blade mounting system.  The "Tough Kit" is comprised of a
kickplate, steering column cover, and other accessories to dress-up
the look of the Rhino.

       We are continually developing and researching new products,
processes, and new applications for existing products. We currently
have approximately 20 new products or current product improvements

<PAGE>

slated to be worked on by our Engineering department during fiscal
2008.  There are no products presently being developed that will
require a material investment of our resources.


PATENTS AND TRADEMARKS

	We maintain trademarks for all of our product names.  In 2007
we trademarked "Tough Kit" for use with a grouping of our new UTV
accessories.  In addition, we maintain patents for wheel covers, 3-
point hitches, rack utility boxes, work power lift system, rub block
on work power lift, grablight, the 5th wheel trailer, Perf-Form oil
filter/cooler, and the Weekend Warrior universal tow frame.  We
recently patented our Beadlock A/T Wheel cover, the Weekend Warrior
Universal Blade System and our Quick-Attach blade mounting system.
We also have begun the process to patent two new products whose
patents should be completed and approved in early fiscal 2008.


SUPPLIERS

       During fiscal 2007, the Company did not purchase raw materials from
any one vendor that equaled or exceeded 10% of materials used in products
sold during the year.  The Company has a policy of strengthening its
supplier relationships by concentrating its purchases for particular
parts over a limited number of suppliers in order to maintain quality and
cost control and to increase the suppliers' commitment to the Company.
The Company continuously evaluates suppliers to assure that quality, cost
and reliability are adequate and to assure ourselves that we have not
become dependent on a single supplier for any of our key materials.

	On April 29, 2005 we acquired Simonsen Iron Works, Inc., which had
been our largest supplier of fabricated steel parts for total
consideration of $7,000,000 in cash and $8,000,000 worth of our common
stock.  We believe that our partnership with Simonsen has been a key to
the success of our Company as working with this vendor allowed us to
maintain the highest quality parts at the most economical cost.  Going
forward as one company will allow us to bring products to market sooner,
reduce costs by streamlining production processes, and reducing overhead
to maximize profits, while maintaining our high quality product standard.


MARKETING - CHANNELS OF DISTRIBUTION:

       ATV Accessories:

Domestic Distribution

       We distribute our products domestically through 9 distributors
that specialize in motorcycle and ATV accessories.  These
distributors are either regional or national.  We believe that
virtually every ATV dealer in the United States is served by at
least two of these distributors.   Because of this overlap we

<PAGE>

believe that we would experience a minimal decline in sales if any
one of our distributors decided to stop selling our products.  Most
of these distributors have been customers of Cycle Country since we
first began selling ATV accessories.

       During the year ended September 30, 2007, domestic accessory
sales represented approximately 60% of our total ATV Accessory
sales.  For 2007, our largest distributor accounted for 39% of our
domestic accessory sales and our five largest distributors accounted
for 93% of our domestic accessory sales.

		In cooperation with John Deere, Land Pride, Bristers, and
now Textron/E-Z-Go we have developed several products that are
now being sold as accessories for John Deere lawn and garden
equipment, Land Pride utility vehicles, Bristers utility
vehicles, and E-Z-Go side-by-side units.  In addition, we had
also cooperated with John Deere to provide licensed accessories
for its line of discontinued Utility ATV's.  Products included
bags, plow kits, helmets, gloves, gun rack, grab light, and an
ATV cover that Cycle Country manufactured and distributed to
authorized John Deere ATV dealers as officially licensed
product.  We continue to work closely with Deere on other
projects and in other areas, including completely redesigned V-
blade, straight blade and rear screen for their line of Gators.
We are in our third year of supplying Masterlock branded winch
mounts for Masterlock's own brand of winch that is sold
primarily in Wal-Mart stores across the country. OEM sales
during the year ended September 30, 2007 represent
approximately 16% of our total ATV Accessory sales.  We intend
to continue expanding our associations with John Deere, Land
Pride, Bristers, and Textron/E-Z-Go in the future as well as to
seek new opportunities with other similar OEM's.

International Distribution

       We distribute our products internationally through 11
distributors that sell our products in over 30 countries.  We have
been selling our products internationally for the last 11 years.  We
were featured in a promotional hardbound book printed in 2006 which
was commissioned by the Iowa Department of Economic Development as a
tool to promote economic growth internationally and domestically.

       International accessory sales represent approximately 20% of
our total ATV Accessory sales during the year ended September 30,
2007.  We intend to continue expanding and growing our international
sales by supporting growth through our current international
distributors and developing relationships with new international
distributors.  We believe that the international market will
continue to be a significant contributor to our long-term sales
growth.  Powersports Business and other industry sources indicate
that ATV sales are projected to be stable for 2007 internationally.
Internationally ATVs are viewed more as tools than toys, so they are
more multi-use and utility-based according to Mr. Jon Row, press
manager at American Honda Motor Co. Inc.

<PAGE>

       Wheel Covers:

       We market wheel covers to virtually all golf car manufacturers.
We estimate we provide approximately 70% of all wheel covers sold to
these golf car manufacturers.  Sales to these golf car OEM's are
made directly by our sales force.

       We also market our wheel covers to golf courses and golf car
dealers through an extensive network of golf equipment distributors.
Management estimates that this distributor network allows us to
achieve a 70% market share of the golf car after market wheel cover
sales.

       Weekend Warrior:

       We market our Weekend Warrior lawn and garden and utility
vehicle accessories mainly by selling to national and regional
retail outlets.  We also work with lawn and garden equipment and
utility vehicle equipment manufacturers to introduce our accessories
into their product lines or by creating new accessories for their
own product lines.  We will continue to pursue opportunities with
retail outlets, OEM's and other direct-to-market distribution
opportunities to further our growth in this market.  Power Products
Marketing and other industry sources indicate that Utility Vehicles
(side-by-sides) will continue their double-digit growth in 2007 and
2008, cracking the 300,000-unit sales barrier in 2008.


       Contract Manufacturing:

       In early fiscal 2007, we engaged two manufacturer's sales rep.
firms to grow and expand our market in Iowa and all of the states
surrounding Iowa.  Sales to customers are made by the sales rep.
firms with quoting and sales support provided by our staff.  Current
customers include American Athletic Inc. and Husqvarna Turf Care
Division.  Gaining new business from potential customers as well as
existing customers often requires that we submit a cost quote that
the customer then accepts or rejects.  We believe that contract
manufacturing will be a significant contributor to our long-term
sales growth.


Sales and Promotion

       ATV Accessories:

       We employ a sales force of six people to market our ATV
products, two outside salesmen and 4 inside sales and customer
support people.  Our primary method of penetrating the market of ATV
dealers is to leverage the sales work to the representatives
employed by our distributors.  These representatives call on every
ATV dealer in the United States and each of the over 30 countries
represented by our international distributors.  We view our job as

<PAGE>

educating these representatives so they can effectively sell our
product line.

       Each year we produce a catalog of our entire product line and
make a new video that demonstrates the applicability of our
products.  Distributors are allowed unlimited quantities of these
sales tools.  Sales programs such as an early order program that
allows for a discount off of distributor price and a  quarterly
rebate incentive based on quarterly purchases of all of our ATV
accessory products are utilized to promote the product line
throughout the year.

       Our sales people exhibit at several regional, national and
international trade shows each year in conjunction with our
distributors.  These representatives also travel to each of our
domestic distributors each year to demonstrate new products and
address concerns that may arise.  We attend the Dealernews
International Powersports Dealer Expo and the ATV Industry
Magazine's ATV Expo to demonstrate our current and new products to
our distributors and ATV dealers.

       Golf Market:

       The primary means we use to sell our wheel covers is to attend
semi-annual golf industry trade shows, produce a brochure for
distribution to interested parties, and use an independent sales
representative to call on and market directly to golf car, lawn and
garden, and trailer OEMs, distributors, dealers, and national retail
outlets.  We also leverage the after market sales work to the
representatives employed by our distributors to reach golf car
dealers and golf courses throughout North America.

       Weekend Warrior

       We utilize an independent sales rep. firm to market our Weekend
Warrior products.  Our primary method of penetrating the market of
OEM's is to make direct contact with potential manufacturers or to
follow up on leads brought to us through our advertising or current
OEM customers.  Our sales force also calls on national and regional
retail outlets, such as Gander Mountain, as well as other direct-to-
market outlets.

       Each year we produce a catalog of our entire product line and
make a new video that demonstrates the applicability of our
products.  We use retail-ready boxing that has pictures and graphics
so that our product can attract the attention of the retail outlet's
customer. We also provide our retail outlet customers plan-o-grams
that specify product placement and product mix based on a certain
size of shelving section to maximize sales at the retail outlet.
Our lawn and garden and retail outlet customers are allowed
unlimited quantities of these sales tools.

       Our representatives exhibit at regional and national trade
shows each year.  They also travel to OEM or retail outlet customers
to demonstrate our products and address concerns that may arise.

<PAGE>

       Contract Manufacturing

       We market our capabilities utilizing two manufacturer's rep.
firms.  We created a new video and brochure in 2006 that highlights
our unique manufacturing capabilities and expertise.  The video and
brochure are provided to each new potential customer as well as
current customers.  Our representatives focus their efforts
primarily within Iowa and the surrounding states.  These
representatives directly call on manufacturers of all types
promoting our capabilities.


Advertising

       We advertise our ATV and Weekend Warrior accessories in
national trade magazines, professionally developed videos, annual
catalog, magazine and television advertising campaigns.
Additionally we have three Internet sites located at:
www.cyclecountry.com , www.perf-form.com , and www.weekend-
warrior.com.  These websites were redesigned in fiscal 2007 and will
be expanded in fiscal 2008 to add e-commerce capabilities and other
tools to expand the Company's presence and availability to
consumers, dealers and distributors "24/7/365".  The first stage
will be a shopping cart that will allow a consumer to create an
exact list of the accessories he wants or needs for his model
specific ATV or UTV that can be emailed, faxed, or printed and taken
to any dealer for purchasing.


COMPETITION

       We are one of the largest ATV accessory manufacturers in the
world.  Management estimates that we control over 50% of the
worldwide market in several product categories.  Additionally,
management estimates that we maintain 70% market share of the OEM
golf car hubcap market and 70% of the golf car hubcap aftermarket.

       As with any industry we are faced with competition. Due to our
aggressive marketing and innovative product line, however, we
maintain the largest market share in the ATV Utility Accessory
Market as well as the golf car wheel cover market.  With our entry
into the lawn & garden and utility vehicle accessory markets, our
goal is to achieve a leading market share in those markets.

       However, the markets for all of our products are competitive.
We expect the markets for our products to become even more
competitive if and when more companies enter them and offer
competition in price, support, additional value added services, and
quality, among other factors.

<PAGE>

EMPLOYEES

	As of September 30, 2007, we have 104 full-time employees, including
76 in production, 6 in sales, 6 in administration, 6 general office, and
10 in engineering.  We presently have no labor contract with any unions
and we do not anticipate unionization of our personnel in the foreseeable
future.  We believe our relationship with our employees is good.  From
time to time, we hire part time employees, ranging from a minimum of 1 to
a maximum of 3.  We also regularly utilize 12-16 temporary employees at
our Spencer facility through local employment agencies to handle high
seasonal demand peeks.



Item 2.  DESCRIPTION OF PROPERTIES

       Our  distribution/light manufacturing facility is a modern
106,000 square foot facility located at 2188 Highway 86, Milford,
Iowa, which is located on 10 acres at the intersection of two major
highways which allows for easy entry and exit for truck traffic.
This property is zoned light industrial and will support an
additional 51,000 square foot building expansion.  We owned this
facility up until November 14, 2007 upon which time we sold the
property to the company's founders, Jim and Jan Danbom in exchange
for all of their Cycle Country common shares.  The total number of
shares was 1,410,730 with a value on the closing date of the
transaction of $2,581,636.  The company now leases approximately 90%
of the facility from the Danboms under a three year triple net
lease that contains two one year renewal options.  The annual lease
cost is $185,104 payable in monthly installments.  The company
placed the common shares acquired into treasury stock to be used
at a later date for acquisitions, mergers, or major capital
additions that may arise in the future.


       Our manufacturing facility located at 1701 38th Avenue West,
Spencer, Iowa is a modern 115,000 square foot facility, which is
located on 16 acres in the Spencer Industrial Park.  This property
will support an additional 150,000 square foot building expansion.
Also located in the Spencer Industrial Park is a modern 20,000
square foot facility located at 3403 West Milwaukee Street, which is
currently used as a warehouse but could be used for manufacturing.
We own both Spencer facilities as a result of the acquisition of
Simonsen Iron Works on April 29, 2005.

       In early fiscal 2007 we completed the relocation of our
principal corporate office to the Spencer facility from our Milford
facility.  By bringing all of the corporate office staff together
under one roof it has improved communications and increased the
efficiency of operations.


<PAGE>

Item 3.  LEGAL PROCEEDINGS

	At times we are involved in lawsuits in the ordinary course of
business. These lawsuits primarily involve claims for damages
arising out of the use of our products.  As of the date of this
filing, we are not a party to any material legal proceedings.  We
currently carry two million dollars of product liability insurance.
In addition, we also have a two million dollar umbrella liability
policy.

         Prior to the merger, Simonsen Iron Works Inc. was named a
defendant in a wage discrimination lawsuit filed by Lori Christenson
in the Iowa District Court in and for Clay County, IA (Case No. LACV
25639) that was filed on November 13, 2003.  The suit was filed
seeking monetary damages under the Equal Pay Act and for Retaliatory
Discharge.  Upon a motion for summary judgment sought by Simonsen,
the court dismissed the count based on the Equal Pay Act during the
third quarter of fiscal 2005.  At that time the court allowed the
retaliatory discharge claim but Simonsen subsequently filed a motion
to reconsider and dismiss this charge as well.  During the first
quarter of fiscal 2006 the court ruled on this motion to reconsider
and denied the motion, the remaining portion of the case the
remaining portion of the case went to trial during the week of July
30, 2007.  The jury returned a verdict in favor of the Company,
awarding no monetary amount to the plaintiff, Lori Christenson.


Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.


PART II.

Item 5.  MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS

Market Information

       Our common stock lists on the American Stock Exchange under the
symbol: ATC.  The table below sets forth the reported high and low
bid prices for the periods indicated.


                                High              Low
FY 2007

Fourth Quarter                  $1.90             $1.51
Third Quarter                   $2.22             $1.84
Second Quarter                  $2.49             $1.80
First Quarter                   $1.98             $1.68

FY 2006

Fourth Quarter                  $2.30             $1.71
Third Quarter                   $3.50             $2.25
Second Quarter                  $3.93             $3.10
First Quarter                   $3.55             $2.72


<PAGE>

        As of December 19, 2007, there were approximately 408 holders
of record of Common Stock inclusive of those brokerage firms and/or
clearing houses holding the Company's Common Stock in street name
for their clientele (with each such brokerage house and/or clearing
house being considered as one holder).

       The Company has never paid a dividend on its common stock.  It
is the Company's present policy to retain all earnings to provide
funds for the future growth of the Company.

Recent Sales Of Unregistered Securities

	The Company has not had any recent sales of unregistered
securities during the fiscal year ended September 30, 2007.

Issuer Purchases Of Equity Securities

	The Company has not repurchased any shares during the fiscal
year ended September 30, 2007.

Equity Compensation Plan Information

Plan category    Number of          Weighted-average       Number of securities
                 securities to      exercise price of      remaining available
                 be issued upon     outstanding options,   for future issuance
                 exercise of        warrants, and rights   under equity
                 outstanding                               compensation
                 options,                                  plans
                 warrants, and
                 rights



Equity
compensation
plans not
approved by
security
holders          100,000 (1)          $2.00                 None

Equity
compensation
plan approved
by
security
holders            4,637 (2)          $2.33                 45,363

(1)	50,000 shares of restricted common stock of the company
is to be issued to the company's investor relations firm as
part of the total compensation to the firm for services
provided per the written agreement over a twelve month period
commencing October 1, 2007.  Also, 50,000 shares of restricted
common stock is to be issued to the company's CEO and President
as an inducement to employment per the written employment
agreement between the company and the CEO, Mr. Kempf, dated
September 11, 2006.  The agreement further provides that 25%
(12,500 shares) of the total shares were to be issued to the
CEO upon Mr. Kempf's first date of employment and then another

<PAGE>

25% is to be issued to Mr. Kempf upon reaching his 12, 24, and
36 month employment anniversary dates, respectively.  The
50,000 shares for the investor relations firm and the second
installment of 12,500 shares for Mr. Kempf were issued in the
first quarter of fiscal 2008.  The first installment of 12,500
shares for Mr. Kempf was issued in the first quarter of fiscal
2007.

(2)	These shares were issued to non-employee board of
directors under the approved 2007 Incentive Compensation Plan
for their services provided to the company as a director.  The
shares were issued in the first quarter of fiscal 2008.



Item 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
      OPERATIONS AND FINANCIAL CONDITION

       We intend for this discussion to provide the reader with
information that will assist in understanding our financial
statements, the changes in certain key items in those financial
statements from year to year, and the primary factors that accounted
for those changes, as well as how certain accounting principles
affect our financial statements. The discussion also provides
information about the financial results of the various segments of
our business to provide a better understanding of how those segments
and their results affect the financial condition and results of
operations of the Company as a whole.  To the extent that our
analysis contains statements that are not of a historical nature,
these statements are forward-looking statements, which involve risks
and uncertainties.  See "Special Note Regarding Forward-Looking
Statements".  The following should be read in conjunction with our
Consolidated Financial Statements and the related Notes included
elsewhere in this filing.

Overview

	Cycle Country Accessories Corp. (a Nevada corporation) was
incorporated in the State of Nevada on August 15, 2001 as a C
corporation.  The initial capitalization consisted of 3,625,000
shares of common stock.  On August 21, 2001, we entered into an
agreement to purchase all of the outstanding common stock of Cycle
Country Accessories Corp. (an Iowa corporation) for $4,500,000 in
cash and 1,375,000 shares of our common stock.  Cycle Country
Accessories Corp. (an Iowa corporation) was originally incorporated
on August 8, 1983 and is headquartered in Milford, Iowa.  Since both
Companies were under common control by virtue of majority ownership
and common management by the same three individuals, this
transaction was accounted for in a manner similar to a pooling of
interests.  We used the proceeds from a $4,500,000 term note entered
into with a commercial lender to purchase all of the outstanding
common stock of Cycle Country Accessories Corp. (an Iowa
corporation).  Additionally, any proceeds from the sale of stock
received from the exercise of any of the previously issued 2,000,000
outstanding warrants were to be applied to any outstanding balance
on the Note (see Liquidity and Capital Resources).

<PAGE>


	On August 21, 2001, Cycle Country Accessories Corp. (an Iowa
corporation) acquired its operating facility, which consisted of
land and building with a fair value of $1,500,000, from certain
stockholders.  The consideration given was comprised of $300,000 in
cash and 390,000 shares of common stock of Cycle Country Accessories
Corp. (a Nevada corporation).  On August 14, 2001, Cycle Country
Accessories Corp. (an Iowa corporation) merged with Okoboji
Industries Corporation.  Since both Companies were owned and managed
by the same three individuals, this transaction was also accounted
for in a manner similar to a pooling of interests.

	As a result of the transactions described above, we are the
Successor Company to the business activities of the aforementioned
companies.

      In March of 2002, Perf-Form Products, Inc. was purchased for
$462,100 in cash and 22,500 shares of common stock for a total
purchase price of approximately $528,800.

      In June of 2002, the Company acquired Weekend Warrior. The
purchase was made for 10,000 shares of common stock.

       On April 29, 2005, we consummated an Agreement and Plan of
Merger (the "Agreement") with the Selling Shareholders through which
we acquired Simonsen Iron Works.  The terms of the Agreement
provided that the Selling Shareholders exchanged 100% of the
outstanding shares of Simonsen for cash consideration of $7,000,000
and $8,000,000 worth of our common stock, which amounted to
2,179,280 shares.

       On November 14, 2007 the company sold its Milford, Iowa
property to the company's founders, Jim and Jan Danbom in exchange
for all of their Cycle Country common shares.  The company now
leases approximately 90% of the facility from the Danboms under a
three year triple net lease that contains two one year renewal
options.  The annual lease cost is $185,104 payable in monthly
installments.

	We are one of the world's largest manufacturers of accessories
for all terrain vehicles ("ATVs").  We manufacture a complete line
of branded products, including snowplow blades, lawnmowers,
spreaders, sprayers, tillage equipment, winch mounts, baskets and an
assortment of other ATV accessory products.  These products custom
fit essentially all ATV models from Honda, Yamaha, Kawasaki, Suzuki,
Polaris, Arctic Cat and Bombardier.  We design, engineer, assemble,
and manufacture a majority of the accessory products at our Spencer
facility.  Our Milford facility serves as our light manufacturing,
warehousing, and shipping facility.  We completed the relocation of
our corporate headquarters during the first quarter of fiscal 2007
to our Spencer facility from our Milford facility.


	We are recognized as a leader in the manufacturing of high
quality ATV accessory products.  This reputation has enabled us to
develop key, long-term relationships with ATV manufacturers and


<PAGE>

distributors.  We sell our products to 9 distributors in the United
States, most of which have sold our products continuously for the
past 26 years.  The distributors call on and sell Cycle Country
products to virtually every ATV dealer in North America.  Similar
strategic arrangements have also been developed internationally.  We
currently have 11 international distributors distributing our
products to over 30 countries.

	The success of Cycle Country can be attributed to not only
providing quality products at reasonable prices, but more
importantly the superior service that follows the sale.  We at Cycle
Country strive to provide products and services, as good or better,
than we expect for ourselves.

       We are also the largest manufacturer of golf car hubcaps in the
world. We estimate that we maintain 70% of the Original Equipment
Manufacturer hubcap business.  We have always sold directly to golf
car manufacturers and we believe that we have an excellent
distribution network that reaches the after market throughout the
United States, Europe and Asia.

       We are continuing our growth in the lawn and garden industry
with our Weekend Warrior products.  Our market research continues to
tell us that the manufacturers of garden tractors and utility
vehicles need accessories similar to those available in the ATV
industry.  Our pull-behind products, 3-point implements, and other
branded and private label accessories can be used with lawn and
garden tractors and utility vehicles.  We sell our products to
several equipment manufacturers, dealers and retail outlets within
the lawn and garden and utility vehicle markets.  We continue to
work with other manufacturers, dealers, and retail outlets to
introduce these accessories into their product lines.

       Additionally, we are successfully continuing to provide
contract manufacturing services at our Spencer facility (Simonsen
Iron Works, Inc.) to outside manufacturers.  We intend to continue
growing this market by promoting the capabilities and unique
manufacturing processes the Spencer facility can provide to other
manufacturers.


Critical Accounting Policies and Estimates

	The Company's discussion and analysis of its financial
condition and results of operations are based upon its Consolidated
Financial Statements, which have been prepared in accordance with
accounting principles generally accepted in the United States of
America.  The preparation of these financial statements requires the
Company to make estimates and judgments that affect the reported
amounts of assets, liabilities, revenues and expenses, and related
disclosure of contingent assets and liabilities.  On an on-going
basis, the Company evaluates the estimates including those related
to bad debts and inventories.  The Company bases its estimates on
historical experiences and on various other assumptions that are
believed to be reasonable under the circumstances, the results of
which form the basis for making judgments about the carrying value

<PAGE>

of assets and liabilities that are not readily apparent from other
sources.  Actual results may differ from these estimates.

	The Company believes the following critical accounting policies
affect the more significant judgments and estimates used in the
preparation of the Consolidated Financial Statements:

       Accounts Receivable - Trade credit is generally extended to
customers on a short-term basis.  These receivables do not bear
interest, although a finance charge may be applied to balances more
than 30 days past due.  Trade accounts receivable are carried on the
books at their estimated collectible value.  Individual trade
accounts receivable are periodically evaluated for collectibility
based on past credit history and their current financial condition.
Trade accounts receivable are charged against the allowance for
doubtful accounts when such receivables are deemed to be
uncollectible.

       Allowance for Doubtful Accounts - the Company maintains an
allowance for doubtful accounts for estimated losses resulting from
the inability of its customers to make required payments.  If the
financial condition of the Company's customers were to deteriorate,
resulting in an impairment of their ability to make payments,
additional allowance may be required.

       Reserve for Inventory - the Company records valuation reserves
on its inventory for estimated excess and obsolete inventory equal
to the difference between the cost of inventory and the estimated
market value based upon assumptions about future product demand and
market conditions.  If future product demand or market conditions
are less favorable than those projected by management, additional
inventory reserves may be required.

       Depreciation of Long-Lived Assets - the Company assigns useful
lives for long-lived assets based on periodic studies of actual
asset lives and the intended use for those assets.  Any change in
those assets lives would be reported in the statement of operations
as soon as any change in estimate is determined.

       Goodwill and Other Intangibles - Goodwill represents the excess
of the purchase price over the fair value of the assets acquired.
The Company accounts for goodwill in accordance with Statement of
Financial Accounting Standard (SFAS) no. 142, "Goodwill and Other
Intangible Assets".  SFAS No. 142 requires the use of a non-
amortization approach to account for purchased goodwill and certain
intangibles.  Under the non-amortization approach, goodwill and
certain intangibles are not amortized into results of operations,
but instead are reviewed for impairment at least annually and
written down and charged to results of operations in the periods in
which the recorded value is determined to be greater than the fair
value.  The Company has reviewed the goodwill recorded at September
30, 2007 and found no impairment.

       Accrued Warranty Costs  - the Company records a liability for
the expected cost of warranty-related claims as its products are
sold.  The Company provides a one-year warranty on all of its
products except the snowplow blade, which has a limited lifetime


<PAGE>

warranty.  The amount of the warranty liability accrued reflects the
Company's estimate of the expected future costs of honoring its
obligations under the warranty plan.  The estimate is based on
historical experiences and known current events.  If future
estimates of expected costs were to be less favorable, an increase
in the amount of the warranty liability accrued may be required.

       Distributor Rebate Payable - Effective April 1, 2007, the
Company implemented a new distributor rebate program based on
quarterly sales orders that includes a much broader range of
eligible products.  The Company records a liability for the expected
cost of offering the quarterly rebate program to certain eligible
distributors.  The rebate liability is calculated and recognized as
eligible ATV accessory products are ordered and recorded into our
system as sales orders that meet delivery and other program
requirements.  The Program provides for a tiered rebate structure
ranging from 1% to 7% based on orders for eligible products placed
during each quarterly period that meet program requirements.  The
Program rebate is provided to the applicable distributors as a
credit against future purchases of the Company's products.
Prior to April 1, 2007, the Company recorded a liability for the
expected cost of offering an annual rebate program to certain
eligible distributors.  The rebate liability was calculated and
recognized as eligible ATV accessory products were sold based upon
factors surrounding the activity and prior experience of the
eligible distributors.  The Program provided for a 7% rebate on
purchases of certain eligible products during the Program period if
certain pre-determined cumulative purchase levels were obtained.
The Program rebate was provided to the applicable distributors as a
credit against future purchases of the Company's products.

       Accounting for Income Taxes - the Company is required to
estimate income taxes in each of the jurisdictions in which it
operates.  This process involves estimating actual current tax
exposure for the Company together with assessing temporary
differences resulting from differing treatment of items, such as
property, plant and equipment depreciation, for tax and accounting
purposes.  Actual income taxes could vary from these estimates due
to future changes in income tax law or results from final tax exam
reviews.  At September 30, 2007, the Company assessed the need for a
valuation allowance on its deferred tax assets.  A valuation
allowance is provided when it is more likely than not that some
portion or all of the deferred tax assets will not be realized.
Based upon the historical operating profits and the near certainty
regarding sufficient near term taxable income, management believes
that there is no need to establish a valuation allowance.  Should
the Company determine that it would not be able to realize all or
part of its net deferred tax assets in the future, a valuation
allowance may be required.

Results of Operations - Year ended September 30, 2007 vs Year ended
September 30, 2006

<PAGE>


 	OVERALL.


<TABLE>
<CAPTION>


                   Fiscal Year 2007     Fiscal Year 2006     Increase       Increase
                                                           (Decrease) $    (Decrease) %

<S>                  <C>                <C>               <C>             <C>

Revenue               $14,214,250        $16,464,214       $ (2,249,964)      (13.7%)

Cost of goods sold    $ 9,332,869        $10,389,976       $ (1,057,107)      (10.2%)

Gross profit          $ 4,881,381        $ 6,074,238       $ (1,192,857)      (19.6%)

Gross profit %              34.3%              36.9%                           (2.6%)


</TABLE>

The decrease in revenues for the twelve months ended September 30,
2007 was mainly attributable to a decrease in ATV Accessories sales
of 15% and a decrease in our Weekend Warrior business segment sales
of 56% as compared to the twelve months ended September 30, 2006.
The Plastic Wheel Cover segment posted an increase in sales of 13%
while Contract Manufacturing decreased by 5% from fiscal 2006 to
fiscal 2007.  The decrease in gross profit as a percentage of
revenue was mainly attributable to an increase in factory overhead
as management updated and revised its overhead allocation pool and
burden rates.  We attribute the significant decrease in ATV
Accessory and Weekend Warrior sales for fiscal 2007 as compared to
fiscal 2006 to an unusually warm winter season.  With no early
season snowfall or measurable in-season snowfall across the country
to stimulate snowplow sales, ATV Accessory distributor orders were
significantly below normal during our first and second quarters of
fiscal 2007.  In fact, the unusually warm winter negatively impacted
snowplow sales to the extent that only a few ATV Accessory
distributors were able to reach their rebate sales goals, the
majority of our distributors could not reach their sales goals and
forfeited their rebates.  However, preseason orders during our
fourth quarter of fiscal 2007 were stronger than management had
forecasted, which allowed fourth quarter fiscal 2007 ATV accessory
revenues to match the fourth quarter of fiscal 2006.  While Cycle
Country is known for its snowplow blades and the blades have
historically been the largest component of our total revenue, our
new business plan acknowledges the seasonality of our sales and
places major emphasis on aggressive development of new products, new
markets, and product innovations to vigorously grow revenues and
reduce our seasonality.  The increase in Wheel Cover revenues can be
attributed to continued success of our 'SS' wheel cover and our new
'Beadlock A/T ' wheel cover released during the third quarter of
fiscal 2007, as well as increased sales to OEMs and distributors.



<TABLE>
<CAPTION>


                   Fiscal Year 2007     Fiscal Year 2006     Increase       Increase
                                                           (Decrease) $    (Decrease) %

<S>                  <C>                <C>               <C>             <C>
Selling, general
and
administrative
expenses              $4,018,875         $4,707,215        $( 688,340)        (14.6%)

</TABLE>

As a percentage of revenue, selling, general, and administrative
expenses were 28% for the fiscal year ended September 30, 2007
compared to 29% for the fiscal year ended September 30, 2006.  The
significant changes in operating expenses for the twelve months
ended September 30, 2007 as compared to the twelve months ended
September 30, 2006 were:

<PAGE>


                      Increase (Decrease) $          Increase (Decrease) %

Depreciation and
  amortization           $(466,041)                     ( 70.1%)

Employee health
  insurance               (206,657)                     ( 71.4%)

Payroll taxes             (106,217)                     ( 53.1%)

Other
professional
fees                      (109,638)                     ( 41.8%)

Investor
relations
  expense                  184,246                       242.2%


The decrease in depreciation and amortization, employee health
insurance, and payroll taxes was due primarily to the updated and
revised overhead allocation pool and burden rates completed by
management.  The increase in investor relations expense was due to
the company engaging an investor relations consultant beginning in
July of 2006 after going several months without the services of an
investor relations consultant prior to that time.

Non-operating income (expense) increased approximately $279,913, or
52%, to $(254,233) for the year ended September 30, 2007, from
$(534,146) for the fiscal year ended September 30, 2006.  The
increase was due primarily to reporting a net gain on the sales of
assets in fiscal 2007 of approximately $54,000 compared to a net
loss in fiscal 2006 of approximately $116,000, which is an increase
of approximately $170,000.  Also contributing to the increase was a
decrease in interest expense from fiscal 2006 to fiscal 2007 of
approximately $75,000 as the principal balance on the bank notes
continues to decrease.

BUSINESS SEGMENTS  As more fully described in Note 14 to the
Consolidated Financial Statements, the Company operates four
reportable business segments:  ATV Accessories, Plastic Wheel
Covers, Weekend Warrior, and Contract Manufacturing.  ATV
accessories is vertically integrated and utilizes a two-step
distribution method, we are vertically integrated in our Plastic
Wheel Cover segment and utilize both direct and two-step
distribution methods, Weekend Warrior utilizes a single-step
distribution method, and our Contract Manufacturing segment deals
directly with other OE manufacturers and businesses in various
industries.

ATV ACCESSORIES


<TABLE>
<CAPTION>


                   Fiscal Year 2007     Fiscal Year 2006     Increase       Increase
                                                           (Decrease) $    (Decrease) %

<S>                  <C>                <C>               <C>             <C>

Revenue               $10,550,309        $12,396,341       $ (1,846,032)        (14.9%)

Cost of goods sold    $ 4,153,228        $ 5,908,237       $ (1,755,009)        (29.7%)

Gross profit          $ 6,397,081        $ 6,488,104       $ (   91,023)         (1.4%)

Gross profit %              60.1%              52.3%                              7.8%


</TABLE>

<PAGE>

The decrease in ATV Accessories revenue for the fiscal year ended
September 30, 2007 was due to an unusually warm winter season.  With
no early season snowfall or measurable in-season snowfall across the
country to stimulate snowplow sales, ATV Accessory distributor
orders were significantly below normal during our first and second
quarters of fiscal 2007.  In fact, the unusually warm winter
negatively impacted snowplow sales to the extent that only a few ATV
Accessory distributors were able to reach their rebate sales goals,
the majority of our distributors could not reach their sales goals
and forfeited their rebates.  The significant changes in ATV
accessory product sales were:


                     Increase (Decrease) $        Increase (Decrease) %

Snowplow blades       $(1,714,200)                        (20%)

Winches and winch
 mounts                  (338,100)                        (53%)

Mowers                   (306,400)                        (58%)

Perf-Form oil
filters and
oil coolers              (214,800)                        (37%)

Golf car
accessories               313,100                         100%

UTV (side-by-
side)
accessories               194,100                         100%

Our newest markets, golf car accessories and UTV (side-by-side)
accessories feature products designed to enhance the look and
functionality of golf cars and utility vehicles.  Brush guards, kick
plates, steering column covers, blades, and a safari rack, all in
black or chrome diamond plate are some of the accessories we
developed and took to market in fiscal 2007.  While Cycle Country is
known for its snowplow blades and the blades have historically been
the largest component of our total revenue, our new business plan
acknowledges the seasonality of our sales and places major emphasis
on aggressive development of new products, new markets, and product
innovations to vigorously grow revenues and reduce our seasonality.

Impacting the gross profit as a percentage of revenue was changes to
allocations of burden and factory overhead among our various
business segments as management regrouped certain expense items and
recalculated the burden and overhead rates of the company.

Looking ahead to fiscal 2008 we project a modest growth in revenues
with gross profits for our ATV Accessories ranging in the 50% to 55%
range.  With a minimum of 12 new products due to be released next
year, continued focus on accessories for the double-digit growing
Utility Vehicles, Asian ATV imports, and Golf Cars, stronger efforts
to attain more just-in-time (JIT) agreements for our raw material,
and continue our concerted effort to actively market and build name
recognition with dealers, management believes that sales for ATV
accessories will again increase year over year and profit
percentages will be maintained.


<PAGE>


PLASTIC WHEEL COVERS


<TABLE>
<CAPTION>


                   Fiscal Year 2007     Fiscal Year 2006     Increase       Increase
                                                           (Decrease) $    (Decrease) %

<S>                  <C>                <C>               <C>             <C>

Revenue               $  2,003,626       $  1,777,953      $   225,673         12.7%

Cost of goods sold    $    814,246       $  1,052,275      $  (238,029)       (22.6%)

Gross profit          $  1,189,380       $    725,678      $   463,702         63.9%

Gross profit %               59.4%              40.8%                          18.6%

</TABLE>

The increase in revenues was mainly due to an increase in sales of
our 'SS' wheel cover and sales from our newest wheel cover design,
the 'Beadlock A/T', which was introduced in the third quarter of
fiscal 2007.  Also contributing to the increase was increased sales
to OEM golf car manufacturers and distributors.  The 'SS' wheel
cover sales for fiscal year 2007 were approximately $633,000.  The
new 'A/T' chrome wheel cover has generated new sales of
approximately $52,000 .  The Beadlock has also crossed over into the
lawn and garden and UTV markets and is becoming popular as an
affordable method to improve the look of a zero-turn lawnmower or
UTV with factory standard rims. We continue to actively pursue the
development of other new designs in wheel covers to rejuvenate the
market with new choices and stimulate additional growth for this
business segment.

A portion of the increase in gross profit was due to the better
margins earned on the new wheel covers we have introduced, including
the 'SS' and the 'A/T', as well as the investment in new molds for
our turbines that utilizes 32% less plastic material and work
effectively with a lower cost raw plastic.  The implementation of
new burden rates and overhead allocation methods was another factor
in the increased gross profit.  Gross profit for fiscal 2008 should
remain in the 50% to 55% range based on the more profitable margins
of the new wheel cover designs and more efficient molds.


WEEKEND WARRIOR


<TABLE>
<CAPTION>


                   Fiscal Year 2007     Fiscal Year 2006     Increase       Increase
                                                           (Decrease) $    (Decrease) %

<S>                  <C>                <C>               <C>             <C>

Revenue               $    358,524       $     814,325     $    (455,801)      (56.0%)

Cost of goods sold    $    192,679       $     491,153     $    (298,474)      (60.8%)

Gross profit          $    165,845       $     323,172     $    (157,327)      (48.7%)

Gross profit %               46.3%               39.7%                           6.6%

</TABLE>

The decrease in revenues was attributable to the warm winter season
and a decrease in sales to PEP Boys of approximately $447,000 as
their restocking orders were significantly down from last year.
With the newly patented Universal Plow System, a two-wheel weed and
brush mower, a safari rack, and other new products, management now
has Weekend Warrior set with a complete product line that can
compete with the current brands in the small-box retail markets.
Management believes this segment does have the largest long-term
growth potential, and it is anticipated that fiscal 2008 will see
the beginnings of this growth as a new independent sales rep agency


<PAGE>


has been added to the sales team for this segment.  The new rep. has
numerous contacts within the small box retail arena and years of
success selling products in this arena.  The small increase in gross
profit, as a percentage of revenue, for the fiscal year ended
September 30, 2007 as compared to the fiscal year ended September
30, 2006 was mainly due to the product mix sold this year that
yielded better gross margins than the mix of products sold last
year.  Management projects gross profit for fiscal 2008 to be in the
45% to 50% range as products with very low margins will be phased
out.

CONTRACT MANUFACTURING


<TABLE>
<CAPTION>


                   Fiscal Year 2007     Fiscal Year 2006     Increase       Increase
                                                           (Decrease) $    (Decrease) %

<S>                  <C>                <C>               <C>             <C>

Revenue               $  1,738,298       $  1,834,814      $    (96,516)      (5.3%)

Cost of goods sold    $    850,215       $  1,111,107      $   (260,892)     (23.4%)

Gross profit          $    888,083       $    723,707      $    164,376       22.7%

Gross profit %               51.1%              39.4%                         11.7%


</TABLE>

This business segment was created during the first quarter of fiscal
2006 by management to monitor and manage the expansion of our
contract manufacturing services provided by our Spencer facility.
With ample production capacity and unique fabrication and painting
capabilities, management believes that increasing the fabrication of
parts and the manufacture of products to other OE manufacturers and
businesses will also provide the company with a significant source
of revenues in quarters traditionally slow for our main ATV
Accessories business segment.  The small decrease in Contract
Manufacturing revenues was due to a mild reduction in orders from
customers and a reduction in new quoting opportunities during our
second fiscal quarter of 2007.  However, the third and fourth
quarters of fiscal 2007 increased over the same two quarters of last
year.  The two Manufacturer's Rep. agencies that cover Iowa and the
surrounding states continue to generate a significant increase in
new quoting opportunities from new customers as well as past and
current customers.  Management believes that this segment has the
potential to generate approximately $2 million in revenue in fiscal
2008.  Gross margin increased as management was able to improve the
profitability of the parts that were produced. Also impacting the
gross profit as a percentage of revenue was changes to allocations
of burden and factory overhead among our various business segments
as management regrouped certain expense items and recalculated the
burden and overhead rates of the company.  Management projects gross
profit for fiscal 2008 to be in the 45% to 50% range.

GEOGRAPHIC REVENUE

<TABLE>
<CAPTION>


Country            Fiscal Year 2007     Fiscal Year 2006     Increase       Increase
                                                           (Decrease) $    (Decrease) %

<S>                  <C>                <C>               <C>             <C>
United States of
America               $12,140,210        $14,586,031       $ (2,445,821)       (16.8%)

All Other
Countries             $ 2,074,040        $ 1,878,183       $    195,857         10.4%



</TABLE>

<PAGE>

The increase for the year ended September 30, 2007 in other
countries was due to an increase of sales in Europe and Canada.  The
decrease for the year ended September 30, 2007 in the Unites States
of America was due to reduced sales across all regions serviced by
our domestic ATV accessories distributors and decreased sales by our
Weekend Warrior business segment.

Results of Operations - Year ended September 30, 2006 vs Year ended
September 30, 2005

 	OVERALL.


<TABLE>
<CAPTION>


                   Fiscal Year 2006     Fiscal Year 2005     Increase       Increase
                                                           (Decrease) $    (Decrease) %

<S>                  <C>                <C>               <C>             <C>

Revenue               $16,464,214        $17,181,463       $   (717,249)       (4.2%)

Cost of goods sold    $10,389,976        $11,847,409       $ (1,457,433)      (12.3%)

Gross profit          $ 6,074,238        $ 5,334,054       $    740,184        13.9%

Gross profit %              36.9%              31.0%                            5.9%


</TABLE>

The decrease in revenues for the fiscal year ended September 30,
2006 was mainly attributable to our ATV accessories business
segment, which had a decrease in sales of approximately 17% this
year compared to last year.  However, each of our other three
business segments experienced increases in sales for the fiscal year
ended September 30, 2006 compared to the fiscal year ended September
30, 2005.  Contract Manufacturing increased approximately 155%,
Weekend Warrior increased approximately 139%, and our Plastic Wheel
Cover business segment increased approximately 22%.  The increase in
gross profit as a percentage of revenue was mainly attributable to
two factors: a) improved product pricing that ensures adequate gross
margins utilizing projected raw material cost trends and b)
reduction in material costs as a direct benefit of the acquisition
and merger of our largest supplier, Simonsen Iron Works, during the
third quarter of fiscal 2005.  The decrease in sales for the ATV
Accessories segment was due to the sluggish sales all of our
distributors experienced during the first quarter of fiscal 2006
that in turn caused sluggish sales for the Company.  The decrease
was also due to OEM product sales being substantially lower during
fiscal 2006 as compared to fiscal 2005, which management believes
was due to sluggish sales for the OEMs as well.  Strong increases in
our Weekend Warrior, Plastic Wheel Covers, and our new Contract
Manufacturing segments continue to provide support that the
initiatives and growth strategies management has implemented and
continues to develop are, and will, generate growing, sustainable
revenues for fiscal 2007 and beyond.



<TABLE>
<CAPTION>


                   Fiscal Year 2006     Fiscal Year 2005     Increase       Increase
                                                           (Decrease) $    (Decrease) %

<S>                  <C>                <C>               <C>             <C>
Selling, general
and
administrative
expenses              $4,707,215         $3,920,370        $  786,845         20.1%


</TABLE>

<PAGE>

As a percentage of revenue, selling, general, and administrative
expenses were 29% for the fiscal year ended September 30, 2006
compared to 23% for the fiscal year ended September 30, 2005.  The
significant changes in operating expenses for the twelve months
ended September 30, 2006 as compared to the twelve months ended
September 30, 2005 were: employee wage expense increased
approximately $250,900, or 23%, depreciation and amortization
increased approximately $300,600, or 83%, employee health insurance
expense increased approximately $158,500, or 121%, advertising costs
increased approximately $185,200, or 54%, and other professional
fees increased approximately $199,800, or 320%.  Offsetting these
increases was a reduction in fuel and fuel taxes of approximately
$52,000, or 41%, due to the elimination of the Company's semi-truck
fleet and a reduction in investor relations expenses of
approximately $223,100, or 75%, as the company elected to not
utilize an investor relations firm most of the fiscal year as a cost
reduction measure given the decreased sales experienced during the
first quarter.  Employee wages, employee benefit expenses,
insurance, depreciation expense and other certain expense increases
were mainly attributable to the merger with Simonsen Iron Works, our
largest supplier, which occurred during the third quarter of fiscal
2005.  The lump-sum payment of 19 weeks of wages owed to the former
CEO under the employment agreement of approximately $75,000 and
payment of wages to our interim CEO of approximately $101,000 are
also contributing causes for the significant increase in employee
wage expense.  New advertising initiatives such as a television
commercial promoting our Weekend Warrior products, new Contract
Manufacturing brochures and video, and new print ads for our Perf-
Form Oil Filters and Weekend Warrior products contributed to the
increase in advertising expense for the fiscal year ended September
30, 2006 compared to the fiscal year ended September 30, 2005.
Other professional fees increased as management engaged a consulting
firm to begin the planning, analysis and processes documentation
needed for compliance with Sarbanes-Oxley.  The SOX consulting fees
for fiscal 2006 totaled approximately $66,000.  Also increasing
other professional fees were expenses related to the search for a
new CEO of approximately $74,000.  During the latter part of the
second quarter, additional streamlining and consolidation of
manufacturing and assembly processes, consolidation of our
engineering, research & development to one location, and additional
consolidation of administrative and customer service tasks provided
additional cost and expense reductions during the third and fourth
quarters of fiscal 2006.  Management believes these accomplishments
will help alleviate the additional expenses the Company will
continue to incur over the next year as a result of continued
Sarbanes-Oxley work, finishing the implementation and training of a
new full scale manufacturing/distribution and accounting software
program, and pursuing ISO 9001:2000 certification.

Non-operating income (expense) decreased approximately $442,800, or
485%, to $(534,146) for the year ended September 30, 2006, from
$(91,383) for fiscal 2005.  The decrease was due to a large loss on
sale and disposal of assets of approximately $115,600 and an
increase in interest expense of approximately $251,900.  The large
loss on sale of assets was due to management abandoning
approximately $156,000 of software and consulting fees relating to a
full scale manufacturing/distribution and accounting software


<PAGE>


program shortly before the planned implementation date.  The
decision to abandon the software was due to serious flaws and
incompatibilities between the company's methods of conducting
business and the uncompromising methods built into the software not
being made apparent until the final stages of training and
transaction testing was underway.

BUSINESS SEGMENTS  As more fully described in Note 14 to the
Consolidated Financial Statements, the Company operates four
reportable business segments:  ATV Accessories, Plastic Wheel
Covers, Weekend Warrior (formerly Lawn and Garden), and Contract
Manufacturing.  ATV accessories is vertically integrated and
utilizes a two-step distribution method, we are vertically
integrated in our Plastic Wheel Cover segment and utilize both
direct and two-step distribution methods, Weekend Warrior utilizes a
single-step distribution method, and our Contract Manufacturing
segment deals directly with other OE manufacturers and businesses in
various industries.

ATV ACCESSORIES


<TABLE>
<CAPTION>


                   Fiscal Year 2006     Fiscal Year 2005     Increase       Increase
                                                           (Decrease) $    (Decrease) %

<S>                  <C>                <C>               <C>             <C>

Revenue               $12,396,341        $14,950,386       $ (2,554,045)     (17.1%)

Cost of goods sold    $ 5,908,237        $ 8,935,090       $ (3,026,853)     (33.9%)

Gross profit          $ 6,488,104        $ 6,015,296       $    472,808        7.9%

Gross profit %              52.3%              40.2%                          12.1%


</TABLE>

The decrease in ATV Accessories revenue for the twelve months ended
September 30, 2006 was due to the sluggish sales all of our
distributors experienced during the first quarter of Fiscal 2006
across all ATV products and brands.  Also contributing to the
decrease in revenue was OEM product sales decreasing approximately
33% during fiscal 2006 as compared to fiscal 2005, which management
believes was due to sluggish sales for the OEMs as well.  The
primary causes of the decreased sales is the warm winter that
impacted snowplow blade sales and reduced consumer discretionary
spending due to increased gasoline prices and rising interest rates
which impacted all of our ATV accessory sales.  With the fourth
quarter of fiscal 2006 not producing sales that were significantly
greater than the previous year fourth quarter, the lost sales of the
earlier quarters was not able to be overcome entirely.  The decrease
in revenue was mainly attributable to a decrease in snowplow blade
sales of approximately $1,242,400, or 13%, a decrease of OEM
products sales, including John Deere and Land Pride, of
approximately $630,600, or 33%, a decrease in winch and winch mount
sales of approximately $295,300, or 32%, and a decrease in electric
blade lift sales of approximately $108,900, or 33%, for the twelve
months ended September 30, 2006 compared to the twelve months ended
September 30, 2005.  Also contributing to the decrease in revenue
was a decrease in basket sales of approximately $53,400, or 29%, a
decrease in sales of our bed lift kits of approximately $39,000, or
21%, a decrease in sales of Perf-Form oil filter products of
approximately $41,600, or 7%, a decrease in spreader sales of

<PAGE>


approximately $31,000, or 15%, a decrease in sales of our three-
point implements of approximately $43,800, or 22%, a decrease in
sales of our mowers of approximately $27,100, or 5%, and a decrease
in sales of our blade angling kit of approximately $50,000, or 231%.

The increase in gross profit was mainly attributable to two factors:
a) maintaining product pricing that ensures adequate gross margins
utilizing projected raw material cost trends and b) reduction in
material costs as a direct benefit of the acquisition and merger of
our largest supplier, Simonsen Iron Works, during the third quarter
of Fiscal 2005.  Management expects gross profit for Fiscal 2007 to
stay consistent with, or be slightly better than the fiscal 2006
profit percentage as profit margin monitoring, cost containment
efforts, and assembly efficiencies will continue.

Looking ahead to Fiscal 2007 we project a modest growth in revenues
with gross profits for our ATV Accessories maintaining the 50% mark.
With a minimum of 9 new products due to be released next year, new
focus on accessories for the double-digit growing Utility Vehicles
and Asian ATV imports, stronger efforts to reduce inventory levels
and attain more JIT agreements for our raw material, and a concerted
effort to actively market and build name recognition with dealers,
management believes that sales for ATV accessories will again
increase year over year and profit percentages will be maintained.

PLASTIC WHEEL COVERS


<TABLE>
<CAPTION>


                   Fiscal Year 2006     Fiscal Year 2005     Increase       Increase
                                                           (Decrease) $    (Decrease) %

<S>                  <C>                <C>               <C>             <C>

Revenue               $  1,777,953       $  1,461,196      $  316,757       21.7%

Cost of goods sold    $  1,052,275       $    844,957      $  207,318       24.5%

Gross profit          $    725,678       $    616,239      $  109,439       17.8%

Gross profit %               40.8%              42.2%                       (1.4%)


</TABLE>

The increase in revenues was due to an increase in sales to golf car
distributors and sales of our new 'SS' Wheel Cover, which kicked off
in earnest during the third quarter of Fiscal 2006.  This new 'SS'
wheel cover, which has better gross margins than our current wheel
covers, generated approximately $321,000 in new revenue during
fiscal 2006.  Management is projecting revenues for fiscal 2007 to
grow by about 20-25%. We are actively pursuing the development of
other new wheel cover designs to rejuvenate the market with new
choices and sizes and stimulate additional growth for this business
segment.  In fact, the next new cover has been designed and is
anticipated to be in production during our second quarter.  This new
cover has already generated requests by a couple large golf car OEMs
to have exclusive marketing and sales rights for the first 50,000 to
100,000 units.  In addition, we are developing a new wheel cover for
the trailer and cart industries.

Gross profit as a percentage of revenue decreased slightly as an
increase in plastic material costs of approximately 3% was offset by
a 1.2% decrease in direct labor costs. The direct labor reduction
was due to changes in production staffing and shift hours that

<PAGE>


created new production efficiencies.  Management sourced a less
expensive raw plastic and began using it during the third and fourth
quarters.  With expanded use anticipated during fiscal 2007, this
less expensive raw plastic should reduce material costs going
forward.  Management continues to work at containing costs and
finding labor and production efficiencies to offset the continuing
price increases of raw plastic.


WEEKEND WARRIOR (LAWN AND GARDEN)


<TABLE>
<CAPTION>


                   Fiscal Year 2006     Fiscal Year 2005     Increase       Increase
                                                           (Decrease) $    (Decrease) %

<S>                  <C>                <C>               <C>             <C>
Revenue               $    814,325       $    340,363      $   473,962       139.3%

Cost of goods sold    $    491,153       $    195,885      $   295,268       150.7%

Gross profit          $    323,172       $    144,478      $   178,694       123.7%

Gross profit %               39.7%              42.5%                         (2.8%)


</TABLE>

This segment, formerly known as our Lawn and Garden business
segment, contains products which feature pull-behind implements, 3-
point implements, bed lifts, gun and tool racks, soft goods, and
other items designed and built primarily for utility vehicles
(UTVs), utility ATVs, as well as garden tractors.  As growth in
these markets continues this will allow the company to address some
of the seasonality of our ATV accessory products by providing sales
in quarters traditionally slow in our ATV Accessories business
segment.  The increase in revenues was attributable to sales to a
new national direct-retail customer, PEP Boys, of approximately
$617,400.  Looking forward, management anticipates PEP Boys and
other new and current direct-retail customers to generate strong
sales for this segment in fiscal 2007.  As the segment with what
management believes to be the largest long-term growth potential,
approximately 134% growth projected for fiscal 2007, advertising and
other initiatives to encourage and support this growth were
undertaken in fiscal 2006 and will be continued in fiscal 2007.  The
slight decrease in gross profit for the fiscal year ended September
30, 2006 as compared to the fiscal year ended September 30, 2005 was
mainly due to a slight change in product mix as slightly less
profitable products, such as the soft bags, dominated sales in
fiscal 2006. With the introduction of a new blade system exclusively
for the Weekend Warrior product line and other planned accessory
additions, gross profit for fiscal 2007 should return to the 40% to
45% range.

CONTRACT MANUFACTURING


<TABLE>
<CAPTION>


                   Fiscal Year 2006     Fiscal Year 2005     Increase       Increase
                                                           (Decrease) $    (Decrease) %

<S>                  <C>                <C>               <C>             <C>

Revenue               $  1,834,814       $   719,865       $  1,114,949      154.9%

Cost of goods sold    $  1,111,107       $   506,500       $    604,607      119.4%

Gross profit          $    723,707       $   213,365       $    510,342      239.2%

Gross profit %               39.4%             29.6%                           9.8%


</TABLE>

<PAGE>


This business segment was formally created during the first quarter
of fiscal 2006 by management to monitor and manage the expansion of
our contract manufacturing services provided by our Spencer
facility, which was formerly Simonsen Iron Works.  To facilitate
comparison, contract manufacturing revenue and cost of goods sold
for the last two months of the third quarter of fiscal 2005 was
reclassed from the ATV Accessories business segment in the amount of
$719,865 and $506,500, respectively.  Revenue increased due to
fiscal 2006 being a full year compared to fiscal 2005, which was
only a partial year due to the merger and acquisition being
completed in the third quarter of Fiscal 2005.  Also contributing to
the increased revenue is a small amount of new business that was
obtained during fiscal 2006.  Gross Profit as a percent of revenue
increased as reduced material costs added approximately 10% to gross
profit.  With ample production capacity and unique fabrication and
painting capabilities, management believes that increasing the
fabrication of parts and the manufacture of products to other OE
manufacturers and businesses, both regional and national, will also
provide the company with a significant source of revenues in
quarters traditionally slow for our main ATV Accessories business
segment.  Management believes that this segment has the potential to
generate a total of approximately $2.3 million in revenue in fiscal
2007, or an increase of 24%.  Initiatives such as hiring two
independent sales rep firms in the first quarter of fiscal 2007 to
sell our services and capabilities and new promotional materials
developed in fiscal 2006 are part of management's plan to achieve
that revenue.  Opportunities to quote parts are increasing
substantially in the first quarter of fiscal 2007 and some of these
quotes have turned into solid new business for our Contract
Manufacturing segment.

GEOGRAPHIC REVENUE

<TABLE>
<CAPTION>


Country            Fiscal Year 2006     Fiscal Year 2005     Increase       Increase
                                                           (Decrease) $    (Decrease) %

<S>                  <C>                <C>               <C>             <C>
United States of
America               $14,586,031        $15,104,917        $   (518,886)    (3.4%)

All Other
Countries             $ 1,878,183        $ 2,076,546        $   (198,363)    (9.6%)


</TABLE>


The decrease for the year ended September 30, 2006 in other
countries was due to a decrease of sales in Europe.  The decrease
for the year ended September 30, 2006 in the Unites States of
America was due to reduced sales across all regions serviced by our
domestic distributors and OEM customers caused mainly by the
sluggish sales experienced by both, as discussed above.

 Liquidity and Capital Resources

Overview

       Cash flows provided by operating activities of continuing
operations and built-up cash balances provided us with a significant
source of liquidity during the twelve months ended September 30,
2007.

<PAGE>


       Cash and cash equivalents were $454,848 as of September 30,
2007 compared to $450,857 as of September 30, 2006.  Until required
for operations, our policy is to invest any excess cash reserves in
bank deposits, money market funds, and certificates of deposit.

       In fiscal 2007 we made approximately $245,300 in capital
expenditures, received approximately $96,000 from the sale of
capital equipment, and paid approximately $579,600 of long-term debt
principal.  For the fiscal year of 2008 management expects total
capital expenditures to approximate $1,250,000.  Management is
planning to invest in two major pieces of production equipment that
will significantly increase our efficiencies, capabilities, and
outputs.

       During the second quarter of fiscal 2006 management elected to
use $1 million of surplus cash and pay down the principal owed on
the Company's long-term debt to reduce interest costs from rising
interest rates going forward and to shorten the term to maturity on
each of the notes.  During the third quarter of fiscal 2007, as was
done during the third quarter of fiscal 2006, management began to
build up inventory levels of certain ATV accessories to help meet
the anticipated high volume of orders that occurs during our fourth
quarter.  This traditionally high volume exceeds the Company's
normal production capacity and would cause the Company to incur
unnecessary increases in labor and material costs as well as
shipping and handling costs if the Company did not have an adequate
level of inventory entering into the fiscal fourth quarter .

Working Capital

       Net working capital was $6,853,024 at September 30, 2007
compared to $6,418,381 at September 30, 2006.  The significant
changes in working capital are as follows:

<TABLE>
<CAPTION>

                         Balance               Balance           Increase/     Percent
                    September 30, 2007    September 30, 2006    (Decrease)      Change
<S>                   <C>                   <C>                <C>            <C>

Cash and cash
equivalents            $   454,848           $   450,857        $   3,991        0.9%

Accounts
receivable               2,235,856             1,865,099          370,757       19.9%

Inventories              5,270,644             5,090,039          180,605        3.5%

Income taxes
receivable                    -                  235,275         (235,275)      (100%)

Prepaid expenses           227,437               189,844           37,593       19.8%

Accounts payable           195,499               326,378         (130,879)     (40.1%)

Accrued expenses           588,210               610,279          (22,069)      (3.6%)

Income taxes payable        28,657                  -              28,657        100%

Current
portion of
bank notes
payable                    623,697               579,485           44,212          7.6%

</TABLE>


<PAGE>

Contractual Obligations and Other Commercial Commitments

The following table sets forth information concerning our
obligations and commitments to make contractual future payments,
such as debt agreements, purchase obligations and contingent
commitments.

Payments Due During Fiscal Years Ending September 30,

<TABLE>
<CAPTION>

                    Total        2008      2009-2010    2011-2012     Thereafter
<S>                <C>          <C>       <C>          <C>           <C>
Contractual
Obligations:

  Long term debt
   obligations      $6,505,959   $950,998  $1,901,996   $1,311,313    $2,341,650

Unrecorded
Contractual
Obligations:

  Purchase
   obligations      $  288,211   $288,211       -            -             -



</TABLE>


       The long term debt obligations consist of two bank notes
payable, each with a different length of term, which is discussed in
more detail below.  The amounts included in the table represent both
principal and interest based on current bank amortization schedules.

       Purchase obligations include all legally binding contracts such
as firm commitments for inventory purchases, as well as capital
expenditures, and legally binding service contracts. Purchase orders
for inventory and other services are not included in the table
above. Purchase orders represent authorizations to purchase rather
than binding agreements. For the purposes of this table, contractual
obligations for purchase of goods or services are defined as
agreements that are enforceable and legally binding and that specify
all significant terms, including: fixed or minimum quantities to be
purchased; fixed, minimum or variable price provisions; and the
approximate timing of the transaction. Our purchase orders are based
on our current inventory needs and are fulfilled by our suppliers
within short time periods.

The expected timing for payment of the obligations discussed above
is estimated based on current information. Timing of payments and
actual amounts paid may be different depending on the timing of
receipt of goods or services or changes to agreed-upon amounts for
some obligations.

	Long-Term Debt

	On April 28, 2006, the Company and its commercial lender
amended the original secured credit agreement dated August 21, 2001.
Under the terms of the new amendment to the secured credit
agreement, Note One and Note Two discussed above were amended.  The
Notes, going forward, are payable in monthly installments from May
2006 until April 2018 for Note One and until April 2011 for Note
Two, which include principal and interest (7.375% as of September
30, 2007 and 2006) for Note One and principal and interest (7.375%
as of September 30, 2007 and 2006) for Note Two, with a final
payment upon maturity on April 25, 2018, for Note One and April 25,
2011, for Note Two.

	The interest rate is fixed for Note Two and is fixed for Note
One until April 2011, after which the interest rate will be reset to
prime + 0.50% every 60 months.  However, the interest rate for Note
One can never exceed 10.5% or be lower than 5.5%. The monthly
payment is $35,391 and $43,859 for Note One and Note Two,


<PAGE>

respectively.  At September 30, 2007 and 2006, $3,098,690 and
$3,287,224, respectively, were outstanding for Note One and
$1,618,767 and $2,009,880, respectively, were outstanding for Note
Two.

	Additionally, any proceeds from the sale of stock received from
the exercise of warrants are to be applied to any outstanding
balance on the Notes or the Line of Credit described below.


Line of Credit

       On April 28, 2006, the Company and its commercial lender
amended the original secured credit agreement dated August 21, 2001.
Under the terms of the amended secured credit agreement, the Company
has a Line of Credit for the lesser of $1,000,000 or 80% of eligible
accounts receivable and 35% of eligible inventory.  The Line of
Credit bears interest at prime plus 0.50% (8.75% at September 30,
2007) and is collateralized by all of the Company's assets.  The
variable interest rate can never exceed 10.5% or be lower than 5.5%.
The Line of Credit matures on December 31, 2008.  At September 30,
2007 and 2006, no balance was outstanding on the Line of Credit.

	The secured credit agreement contains conditions and covenants
that prevent or restrict the Company from engaging in certain
transactions without the consent of the commercial lender and
require the Company to maintain certain financial ratios, including
term debt coverage and maximum leverage.  In addition, the Company
is required to maintain a minimum working capital and shall not
declare or pay any dividends or any other distributions.  At
September 30, 2007 and 2006, the Company met its financial ratio
requirements.

Warrants

       The Company has 40,000 previously issued warrants outstanding
to purchase one share of the Company's common stock per warrant at
$4.00 per share which do not expire until June 9, 2010.  For the
twelve months ended September 30, 2007, none of the 40,000 warrants
were exercised.  The proceeds are to be applied to the outstanding
balance on the Notes.

Capital Resources

 	Management believes that the Company's operations are not
expected to require significant capital expenditures during fiscal
year 2008.  For the two major capital investments in production
equipment being considered, management plans to utilize debt
financing or a lease arrangement.  Management believes that existing
cash balances, cash flow to be generated from operating activities
and available borrowing capacity under its line of credit agreement
will be sufficient to fund normal operations, and capital
expenditure requirements, non-inclusive of the two major capital
investments being considered, for at least the next twelve months.
At this time management is not aware of any factors that would have
a materially adverse impact on cash flow during this period.


<PAGE>


Special Note Regarding Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 (the "Reform
Act") provides a safe harbor for forward-looking statements made by
or on behalf of the Company.  The Company and its representatives
may, from time to time, make written or verbal forward-looking
statements, including statements contained in the Company's filings
with the Securities and Exchange Commission and in its reports to
stockholders.  Generally, the inclusion of the words "believe",
"expect", "intend", "estimate", "anticipate", "will", and similar
expressions identify statements that constitute "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934 and
that are intended to come within the safe harbor protection provided
by those sections.

All statements addressing operating performance, events, or
developments that the Company expects or anticipates will occur in
the future, including statements relating to sales growth, earnings
or earnings per share growth, and market share, as well as
statements expressing optimism or pessimism about future operating
results (in particular, statements under Part II, Item 6,
Management's Discussion and Analysis of Financial Condition and
Results of Operations), contain forward-looking statements within
the meaning of the Reform Act.  The forward-looking statements are
and will be based upon management's then-current views and
assumptions regarding future events and operating performance, and
are applicable only as of the dates of such statements but there can
be no assurance that the statement of expectation or belief will
result or be achieved or accomplished.  In addition, the Company
undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events,
or otherwise.

By their nature, all forward-looking statements involve risk and
uncertainties.  Actual results may differ materially from those
contemplated by the forward-looking statements for a number of
reasons, including but not limited: competitive prices pressures at
both the wholesale and retail levels, changes in market demand,
changing interest rates, adverse weather conditions that reduce
sales at distributors, the risk of assembly and manufacturing plant
shutdowns due to storms or other factors, the impact of marketing
and cost-management programs, and general economic, financial and
business conditions.


Recent Accounting Pronouncements

Not applicable.


Item 7.  FINANCIAL STATEMENTS

    	The Financial Statements are included with this report
commencing on page F-1.

<PAGE>


Item 8.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

Item 8A.  CONTROLS AND PROCEDURES

The Company maintains disclosure controls and procedures that are
designed to ensure that information required to be disclosed in the
Company's Securities Exchange Act reports is recorded, processed,
summarized and reported within the time periods specified in the
SEC's rules and forms, and that such information is accumulated and
communicated to the Company's management, including its Chief
Executive Officer and Chief Financial Officer, as appropriate, to
allow timely decisions regarding required disclosure.  In designing
and evaluating the disclosure controls and procedures, management
recognized that any controls and procedures, no matter how well
designed and operated, can provide only reasonable assurance of
achieving the desired control objectives, and management necessarily
was required to apply its judgment in evaluating the cost-benefit
relationship of possible controls and procedures.

During the 90 day period prior to the date of this report, an
evaluation was performed under the supervision and with the
participation of our Company's management, including the Chief
Executive Officer and the Chief Financial Officer, of the
effectiveness of the design and operation of the Company's
disclosure controls and procedures.  Based upon that evaluation, the
Chief Executive Officer and the Chief Financial Officer concluded
that the Company's disclosure controls and procedures were
effective.  Subsequent to the date of this evaluation, there have
been no significant changes in the Company's internal controls or in
other factors that could significantly affect these controls, and no
corrective actions taken with regard to significant deficiencies or
material weaknesses in such controls.

Item 8B.  OTHER INFORMATION
None.



<PAGE>

PART III.

Item 9.  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, CONTROL PERSONS
AND CORPORATE GOVERNANCE; COMPLIANCE WITH SECTION 16(A) OF THE
EXCHANGE ACT

Directors and Executive Officers

       Our directors, executive officers and key employees are as
follows:



Name                  Age     Position              Current Position
                                                          Held Since
-------------------------------------------------------------------------------
F.L. Miller           67      Director                    2001

Jim Danbom            64      Director                    2001 thru 2007

L.G. Hancher Jr.      54      Director                    2001

Rod Simonson          52      Director                    2001

Ron Hickman           57      Chief Executive Officer,
                              President and Director      2001 thru 2006

David Davis           42      Chief Financial Officer and
                              Vice President of Finance   2001

Alan Bailey           50      Vice President and Director 2005

John Gault            65      Director and Interim CEO
                             (April thru September 2006)  2005 thru 2007

Lisa Bailey           48      Vice President              2005

Randy Kempf           54      Chief Executive Officer
                              and President               2006

Jan Danbom            59      Director                    2006 thru 2007

F.L. "Skip" Miller was President of Armstrong Wheels from 1970 until
1998. Then in 1998 from his Chief Executive Officer position, Mr.
Miller consummated the company's highly lucrative buy-out from the
international conglomerate GKN Wheels. The selling of Armstrong
Wheels for an impressive premium price was largely based on his
ability to build the company with consistent double-digit annual
growth. In 1998 Mr. Miller purchased AERO Race Wheels, Inc., which
started as a division of Armstrong Wheels in 1997.  AERO Race Wheels
today has become the largest manufacturer of steel racing wheels in
the United States under his leadership.  Mr. Miller participates on
the Audit and Operations committees of the board.  Mr. Miller is
currently serving a three-year term, which will end in 2009.

Jim Danbom was our founder and served as our president from 1981 to
2001.  Mr. Danbom lead the Operations and Planning committees of the
board. He has successfully created numerous businesses in his 28
year career. Having successfully created our products at Cycle
Country, Mr. Danbom focused on acquisitions and new product
development while serving on the Operations and Planning committees.
Mr. Danbom was currently serving a three-year term, which would have
ended in 2010.  Jim Danbom is the spouse of Jan Danbom and the
father of Bradley Danbom, our Director of Marketing.  Mr. Danbom
retired from the board in December, 2007.

L.G. "Bob" Hancher Jr. has served as Chief Financial Officer of
Commerce Street Venture Group since 2000 and in 2005 assumed the
position of CEO as well.  Mr. Hancher served as the Director of
Marketing of Raynor Garage from 1978 to 1988.  In 1993, Mr. Hancher
co-founded, and is now a past President of International Sports


<PAGE>


Management, leaving in 2000 to co-found Commerce Street Venture
Group. Mr. Hancher participates on the Planning and Audit committees
of the board. Mr. Hancher is currently serving a three-year term,
which will end in 2010.

Rod Simonson became a franchisee for Piccadilly Circus Pizza, Inc.
in 1980 by owning and operating 1 of the 5 restaurants under the
company's umbrella. Shortly thereafter, Mr. Simonson purchased the
parent company and became President of Piccadilly. By 1987, the
company became Land Mark Products, Inc., the licensing company for
Piccadilly Circus Pizza. Under his leadership, the company evolved
from several sit-down pizzerias to a complete turnkey operational
partner in convenience stores, malls, hotels, amusement parks and
video stores. Today, there are over 800 locations primarily in
convenience stores throughout 42 states in the Continental United
States. Mr. Simonson is serving on the Planning and Audit committees
of the board. Mr. Simonson is currently serving a three-year term,
which will end in 2009.

Ron Hickman, was our President and our Chief Executive Officer from
October 1, 2001 until March 31, 2006.  Mr. Hickman was on the
Operations and Planning committees of the board.  Mr. Hickman was
relieved of his duties as President and CEO at the end of March,
2006 and concurrently Mr. Hickman resigned from the board.

David Davis, who became our Chief Financial Officer on October 1,
2001, has been a CPA for 16 years.  Prior to joining Cycle Country,
Mr. Davis served as Controller for a Midwest lawn and garden power
equipment distributor from 1997-2001 and worked for several years
prior to that as a CPA at a Midwest regional public accounting firm.

Alan Bailey joined Cycle Country as a Vice President with the
acquisition of Simonsen Iron Works, Inc. on April 29, 2005.  Prior
to the acquisition, Mr. Bailey served as President of Simonsen Iron
Works, a family owned business started in 1906, for the last 6
years.  He was also part owner of Simonsen's.  Under Mr. Bailey's
leadership, Simonsen Iron Works experienced 8% average annual
growth.  Before joining the family business in 1995, he was a
mechanical engineer for International Paper. Mr. Bailey joined the
board in July of 2005 and is currently serving a three-year term,
which will end in 2008.  Alan  is the spouse of Lisa Bailey and the
son of David and Joan Bailey, also owners of the former Simonsen
Iron Works.

Lisa Bailey became a Vice President for Cycle Country with the
purchase of Simonsen Iron Works, Inc. on April 29, 2005.  Ms. Bailey
was a Vice President at Simonsen Iron Works for the 6 years prior to
the acquisition.  She was also part owner of the business.  As Vice
President, Ms. Bailey was in charge of personnel and operations.
Prior to joining Simonsen Iron Works in 1995, She worked for The
Gazette Company, a regional daily newspaper, with circulation of
approximately 66,000, and commercial printer, for 14 years where she
attained the position of pre-press manager.  Lisa Bailey is the
spouse of Alan Bailey.


<PAGE>

John Gault worked for Deere and Company in various engineering and
manufacturing positions for 35 years prior to retirement in 2002.
John held positions including General Manager of two of their
factories, the largest of which had sales ranging from $1.5 to $1.8
billion.  He also spent two years as Vice President: Engineering,
Information and Technology. Mr. Gault joined the board in July of
2005 and was serving a three-year term, which would have ended in
2008.  Mr. Gault served as the Company's Interim CEO upon the
termination of Mr. Hickman at the end of March, 2006 until the new
President and CEO, Mr. Kempf, was hired in September, 2006.  Mr.
Gault resigned from the board in May, 2007.

Jan Danbom was appointed by unanimous vote of the board to serve out
the remaining term of Mr. Hickman, who resigned from the board
concurrently with his termination as the Company's President and CEO
at the end of March, 2006.  Jan Danbom worked alongside her spouse,
Jim Danbom, to grow the company from a small startup business to a
multi-million dollar revenue business at the time the company went
public.  Jan Danbom is the spouse of Jim Danbom and Brad Danbom, our
Director of Marketing, is her son.  Ms. Danbom's current term would
have ended in 2010.  Ms. Danbom retired from the board in December,
2007.

Randy Kempf was hired as our President and Chief Executive Officer
in September, 2006.  Prior to joining Cycle Country, Mr. Kempf
served as Senior Vice President of Operations for Wessels Company of
Greenwood, Indiana, which manufactures HVAC pressure vessels, for
about a year.  Mr. Kempf served as President and Chief Operating
Officer for Contacts, Metals & Welding, Inc. (CMW) of Indianapolis,
Indiana from 2001 to 2005.  As President of CMW, Randy turned the
company around and led the company to successive years of
profitability and growth after just two years at the helm.  He
achieved 10% revenue growth during the 2000-2004 recession and
implemented many cost reducing manufacturing processes, such as 5S,
Lean, and Kaizen.  Mr. Kempf also provided leadership as CMW became
ISO 9001:2000 certified.

Directors' Remuneration

       Effective October 1, 2004 and incorporated into our shareholder
approved 2007 Incentive Compensation Plan, our outside, non-
management directors are compensated for serving on the board of
directors.  Outside, non-management directors receive $500 in common
shares as compensation for each board meeting that they attend.  For
the fiscal year ended September 30, 2007, the non-management
directors are to receive a total of 1,811 shares of restricted
common stock.

Audit Committee

	The audit committee of our board of directors is comprised of
three directors, L.G. Hancher, Jr., F.L. Miller, and Rod Simonson.
Each member of the committee is an independent director as defined
by the American Stock Exchange rules.  In addition, our board of
directors has determined that L.G. Hancher, Jr., as defined by the


<PAGE>


SEC rules, is both independent and an audit committee financial
expert.  Mr. Hancher has extensive experience reading, analyzing,
and preparing GAAP financial statements and SEC reports and filings.

Code Of Ethics and Standards of Conduct

The Company has adopted a code of business conduct and ethics
applicable to the Company's directors, officers (including the
Company's principal executive officer, principal financial officer
and principal accounting officer), and employees, known as the Code
of Ethics and Standards of Conduct.  The Code of Ethics and
Standards of Conduct is available on the Company's website.  In the
event that we amend or waive any of the provisions of the Code of
Ethics and Standards of Conduct applicable to our principal
executive officer, principal financial officer, or principal
accounting officer, we intend to disclose the same on the Company
website at www.cyclecountry.com .

Section 16(a) Beneficial Ownership Reporting Compliance

		The Company is aware of the following individual directors,
officers or beneficial owners of more than ten percent of the
Company's Common Stock that, during the fiscal year 2007 or for the
fiscal year 2007, failed to file on a timely basis reports required
by Section 16(a) of the Securities Exchange Act of 1934.


None



Item 10. EXECUTIVE COMPENSATION

Summary Compensation Table

	The following table sets forth the total compensation paid to
or accrued for the fiscal years ended September 30, 2007, 2006, and
2005 to our Chief Executive Officers, Interim Chief Executive
Officer, and Vice Presidents. The Company did not have any other
officers whose total compensation exceeded $100,000, as defined in
Item 402 of Regulation S-B, who were serving as executive officers
at the end of our last fiscal year.

Annual Compensation

<TABLE>
<CAPTION>


                                                  Other          Restricted    Securities                All
Name and               Fiscal                     Annual         Stock         Underlying     LTIP       Other
Principal Position     Year     Salary    Bonus   Compensation   Awards        Options        Payouts    Compensation
---------------------------------------------------------------------------------------------------------------------
<S>                    <C>      <C>       <C>      <C>           <C>           <C>            <C>        <C>
Ronald Hickman,
  President             2007           0        0     0           0              0             0              698 (2)
                        2006     155,523   12,603   500 (1)       0              0             0           12,389 (3)
                        2005     150,000   41,125   500 (1)       0              0             0            9,787 (4)

John Gault,
 Interim President      2006     101,000        0     0           0              0             0                0

Randy Kempf,
 President              2007     187,000        0    25 (1)      25,000 (6)      0             0            6,979 (5)
                        2006       3,596        0     0          25,000 (6)      0             0                0

Lisa Bailey
 Vice President         2007     100,000        0   500 (1)       0              0             0                0


Alan Bailey,
Sr. Vice President      2007     100,000    9,272   500 (1)       0              0             0           17,097 (7)
                        2006     113,462   13,748   500 (1)       0              0             0           11,033 (8)


</TABLE>
(8)

(1)	Christmas bonus.
(2)	Comprised of $698 value of personal use of company auto.
(3)	Comprised of $1,805 value of personal use of company auto
and $10,584 paid for health insurance.
(4)	Comprised of $1,771 value of personal use of company auto
and $8,016 paid for health insurance.
(5)	Comprised of $6,979 paid for health insurance.
(6)	Comprised of the first and second of four issuances for a
total of $100,000 in restricted company common stock provided
in the employment agreement as an inducement to employment
incentive.
(7)	Comprised of $6,513 value of personal use of company auto
and $10,584 paid for health insurance.
(8)	Comprised of $449 value of personal use of company auto
and $10,584 paid for health insurance.


<PAGE>


Stock Option Grants in the past fiscal year

We have not issued any grants of stock options in the past fiscal
year.


Employment Agreements

       We have entered into employment agreements with certain of our
key executives as follows:

       We entered into an employment agreement with Ron Hickman, our
Past President, effective August 1, 2001 for a period of five years
under which we had hired him to continue as our President.  The
agreement called for Mr. Hickman to receive an annual income of
$150,000 per year plus a bonus equal to three percent (3%) of our
net income before taxes and bonus.  The agreement also provided for
Mr. Hickman to receive standard benefits such as health insurance
coverage, 401(k) retirement savings plan, sick and vacation time,
cafeteria plan, and use of an automobile.  Mr. Hickman was relieved
of his duties as President and CEO at the end of March, 2006 but was
paid according to his employment agreement through the end of his
agreement which was August 22, 2006.

<PAGE>
       We entered into an employment agreement with Jim Danbom, our
former President, effective August 1, 2001 for a period of three
years under which we hired him to continue as a consultant on an "as
needed" basis.  This agreement was renewed by action of the board of
directors in fiscal 2004 for an additional three years. The
agreement expired during fiscal 2007 and was not renewed.  The
agreement called for Mr. Danbom to receive an annual income of
$75,000 per year and to receive standard benefits such as health
insurance coverage, 401(k) retirement savings plan, sick and
vacation time and use of an automobile.

       We entered into an employment agreement with Alan Bailey, our Vice
President, effective May 1, 2005 for a period of five years under which
we have hired him to serve as our Vice President.  The agreement calls
for Mr. Bailey to receive an annual income of $125,000 per year plus a
bonus equal to one and one-half percent (1.5%) of our net income before
taxes and bonus.  The agreement also provides for Mr. Bailey to receive
standard benefits such as health insurance coverage, 401(k) retirement
savings plan, sick and vacation time, cafeteria plan, and use of an
automobile.  Mr. Bailey's agreement was amended in the third quarter of
fiscal 2006 to change his base salary to $100,000 per year.

       We entered into an employment agreement with Lisa Bailey, our Vice
President, effective May 1, 2005 on a month to month basis under which we
have hired her to serve as our Vice President.  The agreement calls for
Ms. Bailey to receive an annual income of $75,000 per year.  The
agreement also provides for Ms. Bailey to receive standard benefits such
as health insurance coverage, 401(k) retirement savings plan, sick and
vacation time, and cafeteria plan.  Ms. Bailey's agreement was amended in
the third quarter of fiscal 2006 to change her base salary to $100,000
per year.

       We entered into an employment agreement with Randy Kempf, our
President, effective September 11, 2006 for a period of three years
under which we have hired him to be our President.  The agreement
contains automatic three year extensions as long as there is no
action by the Board to remove Mr. Kempf and Mr. Kempf remains fully
capable to carry out the duties of President and CEO.  The agreement
calls for Mr. Kempf to receive an annual income of $187,500 per year
plus a bonus equal to three percent (3%) of our pre-tax net income
growth over the average pre-tax net income of a three year base
(fiscal 2004, 2005, and 2006) beginning in fiscal 2007.  The
agreement provides for a total of $100,000 in restricted Company
common stock with 25% issued upon the first day of employment and
25% issued each anniversary date for the next three years as an
employment bonus.  The value of the entire restricted stock award
was determined by the closing price on Mr. Kempf's first day of
employment.  The agreement also provides for Mr. Kempf to receive
standard benefits such as health insurance coverage, 401(k)
retirement savings plan, sick and vacation time, and cafeteria plan.

<PAGE>

Item 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT AND RELATED STOCKHOLDERS MATTERS

     The following table sets forth information regarding beneficial
ownership of our common stock as of the date of this report, by (i)
those shareholders known to be the beneficial owners of more than
five percent of the voting power of our outstanding capital stock,
(ii) each director, and (iii) all executive officers and directors
as a group:




                                Number of
Name and Address of             Shares         Percent
Beneficial Owner                Owned          Owned
-------------------------------------------------------



Commerce Street Venture
Group
17322 Westfield Park Rd
Westfield, IN 46074            365,000         6.08%

Rod Simonson
1007 Okoboji Avenue
Milford, IA 51351               38,176         0.64%

David Davis
c/o Cycle Country
Accessories Corp
1701 38th Ave West
Spencer, IA 51301                8,500         0.14%

F.L. Miller
2500 Manhattan Blvd
Spirit Lake, IA 51360           38,290         0.64%

L.G. Hancher, Jr.
17322 Westfield Park Rd
Westfield, IN  46074           166,287         2.77%

Alan Bailey
c/o Cycle Country
Accessories Corp
1701 38th Ave West
Spencer, IA 51301              510,779         8.50%

Lisa Bailey
c/o Cycle Country
Accessories Corp
1701 38th Ave West
Spencer, IA 51301              326,889         5.44%

David Bailey
1209 Country Club Lane
Spencer, IA 51301              456,296         7.60%

Joan Bailey
1209 Country Club Lane
Spencer, IA 51301              599,296         9.98%

Randy Kempf
c/o Cycle Country
Accessories Corp
1701 38th Ave West
Spencer, IA 51301               35,000         0.58%


All Directors and Officers
as a Group (7 Persons)       1,123,921        18.71%


<PAGE>






Item 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND
DIRECTOR INDEPENDENCE

       Prior to becoming a director and serving as our interim CEO,
management of the company engaged John Gault in October 2004 to
consult with management on cost reduction initiatives and projects.
The consulting agreement calls for fees to be paid to Mr. Gault
based on cost savings achieved over a one year period.  Half of the
fee is paid upon implementation of the cost saving project and the
other half is payable in 4 to 6 months from the implementation date.
Consulting fees paid to Mr. Gault through September 30, 2007 were
$28,360.

       In fiscal 2007 we provided contract manufacturing services to
AERO Race Wheels, Inc. which generated approximately $77,700 in
revenue.  There was approximately $19,700 in accounts receivable at
September 30, 2007.  AERO Race Wheels is owned by F.L. Miller who is
one of our directors.


Item 13. EXHIBITS

         (31.1) Certification of Chief Executive Officer pursuant to
Rule 13a-14
or 15d-14 of the Securities Exchange Act of 1934, as adopted
pursuant to section
302 of the Sarbanes-Oxley act of 2002.

         (31.2) Certification of Chief Financial Officer pursuant to
Rule 13a-14
or 15d-14 of the Securities Exchange Act of 1934, as adopted
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 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 Act of
2002.


<PAGE>


Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Audit Committee Pre-Approval Policy

To ensure the independence of the Company's independent auditor and
to comply with applicable securities laws, listing standards, and
the Audit Committee charter, the Audit Committee is responsible for
reviewing, deliberating and, if appropriate, pre-approving all
audit, audit-related, and non-audit services to be performed by the
Company's independent auditors. For that purpose, the Audit
Committee has established a policy and related procedures regarding
the pre-approval of all audit, audit-related, and non-audit services
to be performed by the Company's independent auditor (the "Policy").

The Policy provides that the Company's independent auditor may not
perform any audit, audit-related, or non-audit service for the
Company, subject to those exceptions that may be permitted by
applicable law, unless: (1) the service has been pre-approved by the
Audit Committee, or (2) the Company engaged the independent auditor
to perform the service pursuant to the pre-approval provisions of
the Policy. In addition, the Policy prohibits the Audit Committee
from pre-approving certain non-audit services that are prohibited
from being performed by the Company's independent auditor by
applicable securities laws. The Policy also provides that the Chief
Financial Officer will periodically update the Audit Committee as to
services provided by the independent auditor. With respect to each
such service, the independent auditor provides detailed back-up
documentation to the Audit Committee and the Chief Financial
Officer.

The Audit Committee appointed Henjes, Conner, & Williams, P.C. as
the Company's independent accountants to audit the consolidated
financial statements of the Company for the fiscal years ending
September 30, 2007 and 2006. Henjes, Conner, & Williams, P.C. have
been Cycle Country's independent accountants since January 16, 2004.

Principal Accountant Fees

Fees for fiscal years ended September 30, 2007 and 2006 were as
follows:



                               Fiscal             Fiscal
                                2007               2006

Audit Fees                     $ 49,811           $ 52,292

Audit-Related Fees                2,358              1,803

Tax Fees                          5,630             10,180

All Other Fees                    2,538                -

Total Fees                     $ 60,337           $ 64,274


<PAGE>


A description of the types of services provided in each category is
as follows:

Audit Fees-Includes audit of the Company's annual financial
statements, review of the Company's quarterly reports on Form 10-
QSB, and consents and assistance with and review of registration
statements filed with the SEC.

Audit-Related Fees-Includes agreed upon procedures related to the
acquisition and merger of Simonsen Iron Works, testing key balances
and subsidiary ledgers due to conversion from old ERP software to
new ERP software, and accounting consultations related to GAAP and
the application of GAAP to proposed transactions.

Tax Fees-Includes tax compliance, tax advice and planning.

All Other Fees-Includes time and research related to pre- and post-
acquisition issues of Simonsen Iron Works, business segment and
property valuations, and other miscellaneous research and assistance
provided to the Company.



<PAGE>






       CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

       CONSOLIDATED FINANCIAL STATEMENTS

       SEPTEMBER 30, 2007 AND 2006


<PAGE>







                               C O N T E N T S







                                                                  Page
                                                                  ----

Independent Auditors' Report                                      F-1


Consolidated Financial Statements:

  Consolidated Balance Sheets                                     F-2

  Consolidated Statements of Income                               F-3

  Consolidated Statements of Stockholders' Equity                 F-4

  Consolidated Statements of Cash Flows                        F-5 - F-6


Notes to Consolidated Financial Statements                     F-7 - F-27


Supplementary Information:

  Independent Auditors' Report on Supplementary Information       F-28

  Schedule 1 - Consolidated Schedule of Gross Profit              F-29

  Schedule 2 - Consolidated Schedule of Selling, General, and
                Administrative Expenses                           F-30




                               * * * * * * * *


<PAGE>



           REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
           -------------------------------------------------------



To the Board of Directors
Cycle Country Accessories Corp. and Subsidiaries
Milford, Iowa


We have audited the accompanying consolidated balance sheets of CYCLE
COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES, (a Nevada corporation) as of
September 30, 2007 and 2006, and the related consolidated statements of
income, stockholders' equity, and cash flows for the years then ended.
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 audit
provides a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of
Cycle Country Accessories Corp. and Subsidiaries, as of September 30,
2007 and 2006, and the results of its operations and its cash flows for
the years then ended in conformity with U. S. generally accepted
accounting principles.




			Certified Public Accountants


/s/Henjes, Conner & Williams, P.C.
Sioux City, Iowa
December 24, 2007





                                      F-1

<PAGE>


               CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                         CONSOLIDATED BALANCE SHEETS

                         SEPTEMBER 30, 2007 AND 2006


                                    ASSETS
                                    ------

                                                    2007            2006
                                                    ----            ----
CURRENT ASSETS
	Cash and Cash Equivalents   		$    454,848	$    450,857
        Accounts Receivable - Trade, Net           2,235,856       1,865,099
        Inventories - Note 2                       5,270,644       5,090,039
        Taxes Receivable                                   -         235,275
        Deferred Income Taxes - Note 9               100,302         103,409
        Prepaid Expenses and Other - Note 3          227,437         189,844
                                               --------------  --------------
           Total Current Assets                 $  8,289,087    $  7,934,523

PROPERTY, PLANT AND EQUIPMENT, Net - Note 5     $ 12,848,141    $ 13,455,852

OTHER ASSETS
        Intangible Assets, Net - Note 4         $    168,528    $    157,033
        Goodwill                                   4,890,146       4,890,146
        Other Assets - Note 6                         38,421          41,396
                                               --------------  --------------
           Total Other Assets                   $  5,097,095    $  5,088,575
                                               --------------  --------------
           Total Assets                         $ 26,234,323    $ 26,478,950
                                               ==============  ==============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
        Accounts Payable                        $    195,499    $    326,378
        Accrued Expenses - Note 7                    588,210         610,279
        Income Taxes Payable                          28,657               -
	Current Portion of Bank Notes Payable -
                Note 8                               623,697         579,485
                                               --------------  --------------
            Total Current Liabilities            $  1,436,063    $  1,516,142

LONG-TERM LIABILITIES
	Bank Notes Payable - Less Current Portion -
                Note 8                          $  4,093,760    $  4,717,619
        Deferred Income Taxes - Note 9             2,428,736       2,505,067
                                               --------------  --------------
            Total Long-Term Liabilities          $  6,522,496    $  7,222,686

STOCKHOLDERS' EQUITY
	Common Stock - Note 10   		$        735	$        729
        Additional Paid-In Capital                14,495,035      14,377,541
        Retained Earnings                          3,779,994       3,361,852
                                               --------------  --------------
           Total Stockholders' Equity           $ 18,275,764    $ 17,740,122
                                               --------------  --------------
            Total Liabilities and Stockholders'
			  Equity   		$ 26,234,323	$ 26,478,950
                                               ==============  ==============

See Accompanying Notes to Consolidated Financial Statements

                                      F-2

<PAGE>

               CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF INCOME

               FOR THE YEARS ENDED SEPTEMBER 30, 2007 AND 2006
               -----------------------------------------------


                                                    2007            2006
                                                    ----            ----

NET SALES                                       $ 14,134,863    $ 16,346,717
        Freight Income                                79,387         117,497
                                               --------------  --------------
            Total Net Sales                      $ 14,214,250    $ 16,464,214

Cost of Goods Sold                               ( 9,332,869)    (10,389,976)
                                               --------------  --------------
           Gross Profit                         $  4,881,381    $  6,074,238

Selling, General and Administrative Expenses     ( 4,018,875)    ( 4,707,215)
                                               --------------  --------------
           Income from Operations               $    862,506    $  1,367,023

Non-Operating Expense, Net - Note 11             (   254,233)    (   534,146)
                                               --------------  --------------
           Income Before Provision for Income
             Taxes                              $    608,273    $    832,877

Provision for Income Taxes - Note 9                  190,131         221,083
                                               --------------  --------------
           Net Income                           $    418,142    $    611,794
                                               --------------  --------------
Weighted Average Shares of Common Stock
  Outstanding:
    Basic                                          7,346,617       7,271,966
    Diluted                                        7,346,617       7,271,966

Earnings Per Common Share:
    Basic                                        $      0.06     $      0.08
    Diluted                                      $      0.06     $      0.08






See Accompanying Notes to Consolidated Financial Statements

                                      F-3


<PAGE>


               CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

               CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

               FOR THE YEARS ENDED SEPTEMBER 30, 2007 AND 2006
               -----------------------------------------------


<TABLE>
<CAPTION>


                                                 Additional
                                  Common          Paid-In         Retained
                                  Stock           Capital         Earnings        Total

<S>                              <C>           <C>             <C>                <C>
Balances at September 30, 2005    $ 631         $ 14,371,639    $ 2,750,058        $ 17,122,328

Net Income                                                          611,794             611,794

Issuance of Common Stock             98                5,902                              6,000


Exercise of Warrants                                                                          -
                                 -------       --------------  -------------      --------------

Balances at September 30, 2006    $ 729         $ 14,377,541    $ 3,361,852        $ 17,740,122

Net Income                                                          418,142             418,142

Issuance of Common Stock              6              117,494                            117,500

Exercise of Warrants                                                                          -
                                 -------       --------------  -------------      --------------

Balances at September 30, 2007    $ 735         $ 14,495,035    $ 3,779,994        $ 18,275,764
                                 =======       ==============  =============      ==============



</TABLE>

See Accompanying Notes to Consolidated Financial Statements

                                      F-4

<PAGE>

               CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                    CONSOLIDATED STATEMENTS OF CASH FLOWS

               FOR THE YEARS ENDED SEPTEMBER 30, 2007 AND 2006



               INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
               ------------------------------------------------






                                                      2007            2006
CASH FLOWS FROM OPERATING ACTIVITIES                  ----            ----
   Net Income                                        $ 418,142    $   611,794
   Adjustments to Reconcile Net Income to Net
       Cash Provided by Operating Activities:
          Depreciation                                 811,392        829,486
          Deferred Income Taxes                       ( 73,224)    (   69,041)
          Amortization                                  12,336         21,230
          (Gain) Loss on Sale & Disposal
                of Equipment                          ( 54,326)       115,562
          Inventory Reserve                             76,095     (   44,049)
          (Increase) Decrease in Assets:
            Accounts Receivable - Trade, Net          (370,756)        60,853
            Inventories                               (256,701)    (   54,194)
            Taxes Receivable                           235,275     (   67,699)
            Prepaid Expenses and Other                  54,906     (   66,902)
            Other Assets                              ( 20,856)       109,176
          Increase (Decrease) in Liabilities:
            Accounts Payable                          (130,879)    (  100,848)
            Accrued Expenses                             2,931     (  159,086)
            Taxes Payable                               28,657              -
              Net Cash Provided by Operating        -----------  -------------
              Activities                             $ 732,992    $ 1,186,282


CASH FLOWS FROM INVESTING ACTIVITIES
   Purchase of Property and Equipment                $(245,335)   $(  578,463)
   Proceeds from Sale of Property, Plant and
       Equipment                                        95,981        126,211
                                                    -----------  -------------
            Net Cash (Used) by Investing Activities  $(149,354)   $(  452,252)




See Accompanying Notes to Consolidated Financial Statements

                                      F-5


<PAGE>

               CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                    CONSOLIDATED STATEMENTS OF CASH FLOWS

               FOR THE YEARS ENDED SEPTEMBER 30, 2007 AND 2006



               INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
               ------------------------------------------------






                                                      2007            2006
CASH FLOWS FROM FINANCING ACTIVITIES
   Payments on Bank Notes Payable                  $(579,647)      $(1,501,441)
   Payment of Loan Costs                                   -        (    7,500)
                                                   ----------      ------------

         Net Cash (Used) by Financing Activities   $(579,647)      $(1,508,941)
                                                   ----------      ------------

         Net Increase (Decrease) in Cash and Cash
           Equivalents                             $   3,991       $(  774,911)

Cash and Cash Equivalents - Beginning of Year        450,857         1,225,768
                                                   ----------      ------------

Cash and Cash Equivalents - End of Year            $ 454,848       $   450,857
                                                   ==========      ============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
   Cash Paid During the Year For:
     Interest, Net of Amounts Capitalized          $ 374,326       $   451,796
                                                   ==========      ============

        Income Taxes Paid                                  -       $   420,098
                                                   ===========     ============

SUPPLEMENTAL SCHEDULE OF NON-CASH FINANCING
  AND INVESTING ACTIVITIES
   Issuance of Common Stock for Payment of
     Consultant Fees                               $  92,500       $     6,000
                                                   ==========      ============
   Issuance of Common Stock for Payment of
     CEO Bonus                                     $  25,000       $     6,000
                                                   ==========      ============

   Issuance of Common Stock for Payment of
     Director Fees                                         -       $     6,000
                                                   ==========      ============

   Issuance of Common Stock under Price Protection
     Provision in Acquisition Agreement for
       Simonsen Iron Works, Inc.                           -       $        98
                                                   ==========      ============





See Accompanying Notes to Consolidated Financial Statements

                                      F-6


<PAGE>

                CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         SEPTEMBER 30, 2007 AND 2006






Note 1  -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity and Principles of Consolidation - The
consolidated financial statements include the accounts of
Cycle Country Accessories Corp.  (Cycle Country - Nevada)
and its wholly-owned subsidiaries:

	Cycle Country Accessories Corp. (Cycle Country - Iowa)
	Cycle Country Accessories Subsidiary Corp (Cycle Country Sub)

Cycle Country - Nevada and Cycle Country Sub are Nevada
corporations, while Cycle Country - Iowa is an Iowa
corporation. The entities are collectively referred to as
"the Company" for these financial statements.  All
significant intercompany accounts and transactions have been
eliminated in consolidation. During the year ended September
30, 2004, the operations of Cycle Country Sub were merged
into Cycle Country - Iowa, leaving a corporate shell for
that subsidiary.

Nature of the Business - The Company is primarily engaged in
the design, manufacture, sale and distribution of
accessories for all terrain vehicles (ATVs) and utility
terrain vehicles (UTVs) to various distributors, dealers and
wholesalers throughout the United States of America, Canada,
Mexico, South America, Europe, and Asia.  Additionally, the
Company manufactures, sells, and distributes injection-
molded plastic wheel covers for vehicles such as golf cars,
lawn mowers, and light-duty trailers.  They also have a lawn
and garden segment containing Weekend Warrior products which
feature pull-behind, 3-point implements and other
accessories designed and built for garden tractors and
utility ATVs.  The Company's headquarters are located in
Spencer, Iowa and it has an assembly plant and distribution
center in Milford, Iowa.

Revenue Recognition - The Company ships products to its
customers by third party carriers.  The Company recognizes
revenues from product sales when title to the products is
passed to the customers and risk of loss transfers to an
unrelated third party, which occurs at the point of shipping
for products shipped by third-party carriers.

Certain costs associated with the shipping and handling of
products to customers are billed to the customer and
included as freight income in the accompanying consolidated
statements of income.  Sales were recorded net of sales
discounts and allowances.  Sales discounts and allowances
were approximately $516,000 and $477,000 in fiscal 2007 and
2006, respectively.



                                      F-7

<PAGE>

                CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         SEPTEMBER 30, 2007 AND 2006




Note 1  -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Cont.) Cost of Goods Sold - The components of cost of goods sold
in the accompanying consolidated statements of income
include all direct materials and direct labor associated
with the assembly and/or manufacturing of the Company's
products.  In addition, an allocation of factory overhead
costs is included in cost of goods sold.

Cash and Cash Equivalents - The Company considers cash on
hand, deposits in banks, and short-term investments with an
original maturity of three months or less when purchased to
be cash and cash equivalents.

Accounts Receivable - Trade credit is generally extended to
customers on a short-term basis.  These receivables do not
bear interest, although a finance charge may be applied to
balances more than thirty days past due.  Trade accounts
receivable are carried on the books at their estimated
collectible value.

Individual trade accounts receivable are periodically
evaluated for collectibility based on past credit history
and their current financial condition.  Trade accounts
receivable are charged against the allowance for doubtful
accounts when such receivables are deemed to be
uncollectible.  While the Company has a large customer base
that is geographically dispersed, a slowdown in markets in
which the Company operates may result in higher than
expected uncollectible accounts, and therefore, the need to
revise estimates for bad debts.  To the extent historical
experience is not indicative of future performance or other
assumptions used by management do not prevail, the
provision for uncollectible accounts could differ
significantly, resulting in either higher or lower future
provisions for uncollectible accounts.  The allowance for
doubtful accounts of $10,000 at September 30, 2007 and
2006, reflects management's best estimate of future
uncollectible accounts.

Inventories - Inventories are valued at the lower of cost
or market.  The cost is determined using the first-in,
first-out method.  The Company evaluates its inventory
value at the end of each quarter to ensure that it is
carried at the lower of cost or market.  This evaluation
includes an analysis of its physical inventory results, a
review of potential obsolete and slow-moving stock based on
historical product sales and forecasted sales, and an
overall consolidated analysis of potential excess
inventory.  To the extent historical physical inventory
results are not indicative of future results and if future
events impact, either favorably or unfavorably, the
salability of the Company's products or its relationship
with certain key vendors, the Company's inventory reserves
could differ significantly, resulting in either higher or
lower future inventory provisions.

                                      F-8

<PAGE>


                CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         SEPTEMBER 30, 2007 AND 2006


Note 1  -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Cont.)	Property, Plant, and Equipment - Property, plant and
equipment are stated at cost less accumulated depreciation.
 Depreciation is provided over the estimated useful lives
of the assets by using the straight-line and accelerated
methods.

Interest costs on borrowings used in connection with the
construction of major facilities are capitalized.  The
capitalized interest is recorded as part of the asset to
which it relates and is depreciated over the asset's
estimated useful life.

Expenditures for normal maintenance and repairs are changed
to expense as incurred.

Goodwill and Other Intangible Assets - Goodwill
(representing the excess of the amount paid to acquire
assets over the estimated fair value of those assets
acquired) and intangible assets with indefinite useful
lives are not amortized but instead are tested for
impairment annually, or when events or circumstances
indicate that its value may have declined.  This
determination of any goodwill impairment is made at the
reporting unit level and consists of two steps.  First, the
Company determines the fair value of a reporting unit and
compares it to its carrying amount.  Second, if the
carrying amount of the reporting unit exceeds its fair
value, an impairment loss is recognized for any excess of
the carrying amount of the reporting unit's goodwill over
the goodwill's implied fair value.  The fair value of the
Company's reporting units is calculated by comparing the
weighted average of the net present value of future cash
flows and a market approach based on the reporting unit's
carrying value.  The Company utilizes discount rates
determined by management to be similar with the level of
risk in its current business model.  Although no changes
are expected, if the actual results of the Company are less
favorable than the assumptions the Company makes regarding
estimated cash flows, the Company may be required to record
an impairment charge in the future.  The Company has
determined that there is no impairment to its goodwill for
the years ended September 30, 2007 and 2006.

The Company's definite-lived intangible asset categories,
covenant not-to-compete agreements and patents, are
amortized over their estimated useful lives.


                                      F-9

<PAGE>


                CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         SEPTEMBER 30, 2007 AND 2006





Note 1  -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Cont.)	Other intangible assets are stated at cost and consist of
trademarks, covenant not-to-compete agreements, and
patents.  The trademarks arising from the Company's
acquisitions have been deemed to have an indefinite life
and as such will not be amortized.  The covenant not-to-
compete agreements are being amortized over their estimated
useful lives (5 years for both) and the patents are being
amortized over their remaining useful lives of 11 years and
12 years, respectively, as of date of acquisition.

Impairment of Long-Lived Assets and Long-Lived Assets
to Be Disposed Of - The Company's long-lived assets,
including property, plant, and equipment, are reviewed for
possible impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset
may not be recoverable.  Recoverability of assets to be
held and used is measured by a comparison of the carrying
amount of an asset to future net cash flows (undiscounted
and without interest charges) expected to be generated by
the asset.  If these projected cash flows are less than the
carrying amount, an impairment loss is recognized based on
the fair value of the asset less any costs of disposition.
 Assets to be disposed of are reported at the lower of the
carrying amount or fair value less costs to sell.

Investment in Golden Rule (Bermuda) Ltd. - The investment
in Golden Rule (Bermuda) Ltd. stock is recorded at cost due
to less than 20% ownership.

Warranty Costs - Estimated future costs related to product
warranties are accrued as products are sold based on prior
experience and known current events and are included in
accrued expenses in the accompanying consolidated balance
sheets.  Accrued warranty costs have historically been
sufficient to cover actual costs incurred.  The following
is a schedule of the accrued warranty expense as of
September 30:

Accrued Warranty Expense                          2007            2006
------------------------                         ------          ------

        Balance - Beginning of Period         $ 45,000          $ 45,000
        Warranty Claims Accrued                 48,435            23,788
        Warranty Claims Settled                (48,435)          (23,788)
                                              ---------         ---------
        Balance - End of Period               $ 45,000          $ 45,000


                                      F-10

<PAGE>


                CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         SEPTEMBER 30, 2007 AND 2006



Note 1  -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Cont.)	Distributor Rebate Payable - The Company offers a quarterly
rebate program (the "Program") for its North America ATV
accessory distributors.  The Program provides for a tiered
rebate from 1% to 7% based on purchases of any and all ATV
accessory products during a quarter.  The Program rebate is
"paid" quarterly to the applicable distributors as a credit
against future purchases of the Company's products.  The
Program rebate liability is calculated and recognized as
ATV accessory products are purchased within a quarter and
is included in accrued expenses in the accompanying
consolidated balance sheets for fiscal 2007.  During fiscal
2006 the Company offered an annual rebate program (the "Old
Program") for its ATV accessory distributors.  The Old
Program provided for a 7% rebate on purchases of certain
eligible products during the Old Program period if certain
pre-determined cumulative purchase levels were obtained.
The Old Program rebate was "paid" to the applicable
distributors as a credit against future purchases of the
Company's products.  The Old Program rebate liability was
calculated and recognized as eligible products were sold
based upon factors surrounding the activity and prior
experience of specific distributors and is included in
accrued expenses in the accompanying consolidated balance
sheets for fiscal 2006.  The distributor rebate expense
totaled approximately $282,000 and $449,000 in fiscal 2007
and 2006, respectively and is recorded as a reduction of
sales in the accompanying consolidated financial
statements.

Income Taxes - The Company accounts for income taxes using
the asset and liability method.  This approach requires the
recognition of deferred tax assets and liabilities for the
expected future tax consequences attributable to temporary
differences between the financial statement carrying
amounts of existing assets and liabilities and their
respective tax bases to the extent that they are
realizable.  Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to
taxable income in the years in which those temporary
differences are expected to be recovered or settled.  The
effect on deferred tax assets and liabilities of a change
in tax rates is recognized in income in the period that
includes the enacted date.

Earnings Per Share - Basic earnings per share ("EPS") is
calculated by dividing net income available to common
shareholders by the weighted-average number of common
shares outstanding during the reporting period.  Diluted
EPS is computed in a manner consistent with that of basic
EPS while giving effect to the potential dilution that
could occur if warrants to issue common stock were
exercised.

                                      F-11

<PAGE>


                CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         SEPTEMBER 30, 2007 AND 2006






Note 1  -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Cont.) 	The following is a reconciliation of the numerators and
denominators of the basic and diluted EPS computations for
the years ended September 30, 2007 and 2006:

                                              For the Year Ended
                                              September 30, 2007
                                              ------------------
                                  Income           Shares        Per-Share
                                (Numerator)     (Denominator)    Amount
Basic EPS
  Income Available to Common
    Stockholders                $ 418,142       7,346,617       $ 0.06

Effect of Dilutive Securities
  Warrants                                              -
                                ---------       ---------

Diluted EPS
  Income Available to Common
    Stockholders and Assumed
    Conversions                 $ 418,142       7,346,617       $ 0.06
                                =========       =========       ======


                                              For the Year Ended
                                              September 30, 2006
                                              ------------------
                                  Income           Shares        Per-Share
                                (Numerator)     (Denominator)    Amount
Basic EPS
  Income Available to Common
    Stockholders                $ 611,794       7,271,966       $ 0.08

Effect of Dilutive Securities
   Warrants                                            -
                                ---------       ---------
Diluted EPS
   Income Available to Common
    Stockholders and Assumed
     Conversions                $ 611,794       7,271,966       $ 0.08
                                =========       =========       ======

Advertising - Advertising consists primarily of television,
videos, newspaper and magazine advertisements, product
brochures and catalogs, and trade shows.  All costs are
expensed as incurred or when first utilized.  Advertising
expense totaled approximately $486,000 and $532,000 in fiscal
2007 and 2006, respectively, and is included in selling,
general, and administrative expenses in the accompanying
consolidated statements of income.



                                      F-12

<PAGE>


                CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         SEPTEMBER 30, 2007 AND 2006


Note 1  -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Cont.)	Research and Development Costs - 	Research and development
costs are expensed as incurred.  Research and development
costs incurred during fiscal 2007 and 2006 totaled
approximately $250,000 and $166,000, respectively.  For the
years ended September 30, 2007 and 2006, costs were
included in selling, general and administrative expenses in
the accompanying consolidated statements of income.

Shipping and Handling Costs - Shipping and handling costs
represent costs associated with shipping products to
customers and handling finished goods.  Shipping and
handling costs totaled approximately $188,000 and $186,000
in fiscal 2007 and 2006, respectively, and are included in
selling, general, and administrative expenses in the
accompanying consolidated statements of income.

Use of 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.  During 2007, there
were no material changes in the Company's methods or
policies used to establish estimates and assumptions.
While the Company does not believe that the ultimate
settlement of any such items will materially affect the
Company's financial condition or results of future
operations, actual results may differ from estimates
provided.

Concentration of Credit Risk - Financial instruments which
potentially subject the Company to concentrations of credit
risk consist principally of cash and trade accounts
receivable.  The Company places its cash with high credit
quality financial institutions.  At various times
throughout fiscal 2007 and 2006 and at September 30, 2007
and 2006, cash balances held at a financial institution
were in excess of federally insured limits.

The majority of the Company's sales are credit sales which
are made primarily to customers whose ability to pay is
dependent upon the industry economics prevailing in the
areas where they operate; however, concentrations of credit
risk with respect to trade accounts receivable is limited
due to generally short payment terms.  The Company also
performs ongoing credit evaluations of its customers to
help further reduce credit risk.


                                      F-13

<PAGE>

                CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         SEPTEMBER 30, 2007 AND 2006




Note 1  -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Cont.)	Fair Value of Financial Instruments - The carrying values
of cash and cash equivalents, accounts receivable, prepaid
expenses, accounts payable, accrued income taxes and
accrued expenses approximate their fair values because of
the short-term nature of these instruments.


Note 2  -  INVENTORIES
The components of inventories at September 30 are summarized
as follows:

                                                    2007            2006
                                                   ------          ------
		Raw Materials   		$ 2,475,451	$ 2,177,654
                Work in Progress                    599,401         432,665
                Finished Goods                    2,295,026       2,502,859
                Inventory Reserve                (   99,234)     (   23,139)
                                                ------------    ------------

                     Total Inventories          $ 5,270,644     $ 5,090,039
                                                ============    ============

General and administrative costs included in finished goods
inventory at September 30, 2007 and 2006, were $593,960 and
$526,326, respectively.  Total General and administrative
costs included in cost of goods sold for the year ended
September 30, 2007 and 2006, were $1,694,022 and $1,827,204,
respectively.

During the year ended September 30, 2007, the Company
updated and revised the accounting method for calculating
the manufacturing overhead allocation pool and application
of burden rates.  This change materially effects the
allocation of expenses into cost of goods sold from selling,
general and administrative expenses in the current year and
will consistently be applied in future years.


Note 3  -  PREPAID EXPENSES AND OTHER
	Prepaid expenses and other at September 30 consisted of the
following:
                                                     2007          2006
                                                     ----          ----

		Prepaid Insurance   		$   162,799	$   157,792
                Prepaid Lease                         3,969           9,261
                Prepaid Promotion                    17,819          10,000
                Prepaid Stock Exchange Fee            6,333           7,917
                Other                                36,517           4,874
                     Total Prepaid Expenses and ------------    ------------
                       Other                    $   227,437     $   189,844
                                                ============    ============

                                      F-14


<PAGE>


                CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         SEPTEMBER 30, 2007 AND 2006



Note 4  -  ACQUIRED INTANGIBLE ASSETS
	Acquired intangible assets consist of the following:


<TABLE>
<CAPTION>

                                                 As of September 30, 2007
                                                 ------------------------
				Weighted-
				Average   	Gross
				Amortization	Carrying	Accumulated
                                   Period        Amount         Amortization     Net
                                ------------    --------        ------------     ---

<S>                            <C>             <C>             <C>              <C>
Amortized Intangible Assets
---------------------------
  Covenant Not to Compete
    Agreements                        5       $  78,000       $  78,000                  -
  Patents                         11.52          78,552          29,863          $  48,689
                                              ----------      ----------         ----------
                                                156,552       $ 107,863          $  48,689

Unamortized Intangible Assets
-----------------------------
  Trademarks                                    119,839                            119,839
                                              ----------                         ----------
       Total Acquired Intangible
         Assets                               $ 276,391       $ 107,863          $ 168,528
                                              ==========      ==========         ==========



                                                 As of September 30, 2006
                                                 ------------------------
				Weighted-
				Average   	Gross
				Amortization	Carrying	Accumulated
                                   Period        Amount         Amortization     Net
                                ------------    --------        ------------     ---

Amortized Intangible Assets
  Covenant Not to Compete
    Agreements                        5        $  78,000       $ 71,234          $  6,766
  Patents                         12.67           63,760         24,293            39,467
                                               ---------       --------          ---------

                                               $ 141,760       $ 95,527          $ 46,233
                                               =========       ========
Unamortized Intangible Assets
  Trademarks                                     110,800                          110,800
                                                 -------       --------          ---------
       Total Acquired Intangible
         Assets                                $ 252,560       $ 95,527          $157,033
                                               =========       ========          =========

</TABLE>


	Amortization expense totaled $12,336 and $21,230 during fiscal 2007
        and 2006, respectively.


                                      F-15

<PAGE>


                CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         SEPTEMBER 30, 2007 AND 2006






Note 4  -  ACQUIRED INTANGIBLE ASSETS

(Cont.)	The estimated future amortization expense for each of the five
succeeding years is as follows:

	  Years Ending September 30,
		         2008   		$      5,631
		         2009   		$      5,631
		         2010   		$      5,631
		         2011   		$      5,631
		         2012   		$      5,631


Note 5  -  PROPERTY, PLANT AND EQUIPMENT

Property, plant, and equipment, their estimated useful
lives, and related accumulated depreciation at September
30, are summarized as follows:

                                         Range of
                                         Lives in
                                         Years       2007              2006

                Land                     -          $   499,820    $   499,820
                Land Improvements        15 - 20        172,981        168,580
                Building                 15 - 40      7,407,485      7,385,027
                Plant Equipment           7 - 10      6,808,719      6,797,290
                Tooling and Dies          3 - 7         832,995        768,720
                Vehicles                  3 - 7         448,355        569,196
                Office Equipment          3 - 10        862,868        643,828
                Construction in Progress    -             3,160        167,910
                                                    ------------   ------------
                                                    $17,036,383    $17,000,371
                Less:  Accumulated Depreciation     ( 4,188,242)   ( 3,544,519)
                                                    ------------   ------------
                                                    $12,848,141    $13,455,852
                                                    ============   ============


Note 6  -  OTHER ASSETS
The components of other assets at September 30 are
summarized as follows:

                                                         2007              2006
                                                         ----              ----
           Unamortized Loan Costs                  $     13,421    $     16,396
           Investment in Golden Rule (Bermuda),
             Ltd.                                        25,000          25,000
                                                   -------------   -------------
                Total Other Assets                 $     38,421    $     41,396
                                                   =============   =============


                                      F-16


<PAGE>


                CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         SEPTEMBER 30, 2007 AND 2006





Note 7  -  ACCRUED EXPENSES
The components of accrued expenses at September 30, are
summarized as follows:

                                                           2007       2006

                Distributor Rebate Payable              $ 180,713    $ 214,904
                Accrued Salaries and Related Benefits     223,870      223,275
                Accrued Warranty Expense                   45,000       45,000
                Accrued Real Estate Tax                   116,414      105,629
                Accrued Royalty Expense                     5,947        8,119
                Accrued Interest                            4,766        5,352
                Accrued Director Fees                      11,500        8,000
                                                        ----------   ----------
                     Total Accrued Expenses             $ 588,210    $ 610,279
                                                        ==========   ==========

Note 8  -  BANK NOTES PAYABLE

On April 28, 2006, the Company and its commercial lender
amended the original secured credit agreement dated August
21, 2001.  Under the terms of the new amendment to the
secured credit agreement, Note One and Note Two discussed
above were amended.  The Notes, going forward, are payable
in monthly installments from May 2006 until April 2018 for
Note One and until April 2011 for Note Two, which include
principal and interest (7.375% as of September 30, 2007 and
2006) for Note One and principal and interest (7.375% as of
September 30, 2007 and 2006) for Note Two, with a final
payment upon maturity on April 25, 2018, for Note One and
April 25, 2011, for Note Two.

The interest rate is fixed for Note Two and is fixed for
Note One until April 2011, after which the interest rate
will be reset to prime + 0.50% every 60 months.  However,
the interest rate for Note One can never exceed 10.5% or be
lower than 5.5%. The monthly payment is $35,391 and $43,859
for Note One and Note Two, respectively.  At September 30,
2007 and 2006, $3,098,690 and $3,287,224, respectively,
were outstanding for Note One and $1,618,767 and
$2,009,880, respectively, were outstanding for Note Two.

Additionally, any proceeds from the sale of stock received
from the exercise of warrants are to be applied to any
outstanding balance on the Notes or the Line of Credit
described below.



                                      F-17

<PAGE>


                CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         SEPTEMBER 30, 2007 AND 2006






Note 8  -  BANK NOTES PAYABLE

(Cont.)	Aggregate maturities of bank notes payable at September 30,
2007, are as follows:

	  Years Ending December 31,
		         2008   		$   623,697
		         2009   		$   671,282
		         2010   		$   722,497
		         2011   		$   511,194
		         2012   		$   272,151
		         Thereafter   		$ 1,919,231

On April 28, 2006, the Company and its commercial lender
amended the original secured credit agreement dated August
21, 2001.  Under the terms of the amended secured credit
agreement, the Company has a Line of Credit for the lesser
of $1,000,000 or 80% of eligible accounts receivable and
35% of eligible inventory.  The Line of Credit bears
interest at prime plus 0.50% (8.75% at September 30, 2007)
and is collateralized by all of the Company's assets.  The
variable interest rate can never exceed 10.5% or be lower
than 5.5%.  The Line of Credit matures on December 31,
2008.  At September 30, 2007 and 2006, no balance was
outstanding on the Line of Credit.

The secured credit agreement contains conditions and
covenants that prevent or restrict the Company from
engaging in certain transactions without the consent of the
commercial lender and require the Company to maintain
certain financial ratios, including term debt coverage and
maximum leverage.  In addition, the Company is required to
maintain a minimum working capital and shall not declare or
pay any dividends or any other distributions.  At September
30, 2007 and 2006, the Company met its financial ratio
requirements.


Note 9 -  INCOME TAXES

	The provisions for income taxes for the years ended
	September 30, 2007 and 2006, consist of the following:

                                                2007          2006
       Current Tax Provision
             Federal                       $   255,580     $ 283,776
             State                               7,775         6,348
                                           ------------    ----------
                                           $   263,355     $ 290,124
       Deferred Tax Provision
             Federal                        (   73,224)     ( 69,041)
                                           ------------    ----------
              Total Income Tax Provision   $   190,131     $ 221,083
                                           ============    ==========


                                      F-18

<PAGE>


                CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         SEPTEMBER 30, 2007 AND 2006





Note 9 -  INCOME TAXES
(Cont.)	Deferred Tax Assets and Liabilities at September 30, are
comprised of the following:

                                                 2007           2006
        Deferred Tax Assets
          Inventory Reserve                  $    33,740     $     7,867
          Inventory Commitment Reserve                 -          24,861
          Accrued Vacation                        44,710          43,217
          Accrued Warranty                        15,300          15,300
          Accrued Bonus                            3,152           8,764
          Allowance for Uncollectible
            Accounts                               3,400           3,400
                                             ------------    ------------
              Total Deferred Assets          $   100,302     $   103,409

        Deferred Tax Liability
          Property and Equipment              (2,428,736)     (2,505,067)
                                             ------------    ------------
               Net Deferred Tax (Liability)  $(2,328,434)    $(2,401,658)


	These amounts are included in the accompanying consolidated
balance sheets at September 30, under the following
captions:

                                                    2007           2006
                                                    ----           ----

          Current Assets                       $   100,302     $   103,409
          Long-Term Liabilities                 (2,428,736)     (2,505,067)
                                               ------------    ------------

            Net Deferred Tax (Liability)       $(2,328,434)    $(2,401,658)
                                               ============    ============


No valuation allowance has been provided for the deferred
tax assets at September 30, 2007 or 2006, as full
realization of these assets is more likely than not.


A reconciliation of the income tax provision computed by
applying the federal statutory rate for the year ended
September 30, 2007 and 2006, is as follows:


                                      F-19

<PAGE>


                CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         SEPTEMBER 30, 2007 AND 2006




Note  9 -  INCOME TAXES

(Cont.)                                               2007           2006

          Federal Statutory Tax                   $ 206,813       $ 283,178
          Depreciation and Amortization            ( 66,279)       ( 50,096)
          Inventory Reserve                        ( 25,872)         14,977
          Deferred Gross Profit                      24,861        ( 24,861)
          Extraterritorial Income Exclusion          15,210          53,176
          Other                                      30,266        ( 59,481)
          State and Local Income Taxes, Net of
            Federal Tax Benefit                       5,132           4,190
                                                  ----------      ----------
              Total Income Tax Provision          $ 190,131       $ 221,083
                                                  ==========      ==========

Note 10 -  STOCKHOLDERS' EQUITY

Common Stock - The Company has 100,000,000 shares of
$0.0001 par value common stock authorized and 7,350,008 and
7,287,508 shares issued and outstanding at September 30,
2007 and 2006, respectively.  Of the 7,350,008 shares of
common stock outstanding, 40,000 of these shares of common
stock have warrants attached which entitle the holder to
purchase one share of common stock per warrant at $4.00 per
share.  These warrants expire in 2010.

The Company has the right, under certain circumstances, to
redeem any unexercised warrants at $0.0001 per share.
During the year ended September 30, 2007, the Company did
not redeem any warrants, nor were any warrants exercised.

The Company has 20,000,000 shares of $0.0001 par value
preferred stock authorized with no shares outstanding at
September 30, 2007 and 2006.  The Board of Directors is
authorized to adopt resolutions providing for the issuance of
preferred shares and the establishment of preferences and
rights pertaining to the shares being issued, including
dividend rates.  	In the event of any dissolution or
liquidation of the Company, whether voluntary or involuntary,
the holders of shares of preferred stock described above will
be paid the full amounts they are entitled to receive before
any holders of common stock are entitled to receive, pro
rata, any remaining assets of the Company available for
distribution to its stockholders.

Registration Statement - On June 20, 2006, the Company
filed a Registration Statement on Form SB-2 with the SEC to
register a total of 2,179,260 shares of common stock.  All
2,179,260 shares of common stock were offered by selling
shareholders.  The Registration Statement on Form SB-2 was
declared effective by the SEC on January 20, 2006.

                                      F-20


<PAGE>


                CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         SEPTEMBER 30, 2007 AND 2006




Note 11 -  NON-OPERATING INCOME (EXPENSE)
Non-Operating income (expense) for the years ended
September 30, 2007 and 2006, consisted of the following:

                                                 2007           2006
	Income
        ------
           Gain on Sale of Equipment          $  54,326              -
           Interest                              48,405      $  27,036
           Lease Income                          13,750              -
           Other                                  5,520          5,000
                                              ----------     ----------
                Total Income                  $ 122,001      $  32,036

	Expense
        -------
           Loss on Sale & Disposal of
             Equipment                                -      $(115,562)
           Other                              $(  2,494)             -
           Interest                            (373,740)      (450,620)
                                              ----------     ----------

                Total Expense                 $(376,234)     $(566,182)
                                              ----------     ----------

                Total Non-Operating Expense,
                       Net                    $(254,233)     $(534,146)
                                              ==========     ==========


Note 12 -  PENSION AND PROFIT SHARING PLAN
Effective March 1, 2004, the Company established a 401(K)
Retirement Savings Plan, which allows qualified employees
to defer the maximum portion of their earnings allowed by
law.  The plan also allows discretionary and matching
contributions from the Company.  The Company matches 25% of
the employee contribution, up to a max contribution of 1%
of the employees compensation.  Company contributions to
the plan totaled approximately $18,000 and $22,000 for the
years ended September 30, 2007 and 2006, respectively.


Note 13 -  BUSINESS CONCENTRATIONS
At September 30, 2007, customers with the two largest
outstanding accounts receivable balances totaled
approximately $678,475 or 30% of the gross accounts
receivable.  At September 30, 2007, the outstanding
accounts receivable balances of customers that exceeded 10%
of gross accounts receivable are as follows:


                                      F-21

<PAGE>


                CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         SEPTEMBER 30, 2007 AND 2006



Note 13 -  BUSINESS CONCENTRATIONS
(Cont.)
                                                        Percent
                                                        of Gross
                                        Accounts        Accounts
		        Customer	Receivable	Receivable

                          A             $ 268,790       12 %
                          B             $ 409,685       18 %


At September 30, 2006, customers with the two largest
outstanding accounts receivable balances totaled
approximately $769,800 or 42% of the gross accounts
receivable.  At September 30, 2006, the outstanding
accounts receivable balances of customers that exceeded 10%
of gross accounts receivable are as follows:

                                                        Percent
                                                        of Gross
                                        Accounts        Accounts
		        Customer	Receivable	Receivable

                          A             $ 515,725       28 %
                          B             $ 254,038       14 %


Sales to the Company's major customers, which exceeded 10%
of net sales, accounted for approximately 16% of net sales
in fiscal 2007 and approximately 21% and 12% each of net
sales in fiscal 2006.

The Company believes it has adequate sources for the supply
of raw materials and components for its production
requirements.  The Company's suppliers are located
primarily in the states of Iowa, Nebraska, Illinois, and
South Dakota.  The Company has a policy of strengthening
its supplier relationships by concentrating its purchases
for particular parts over a limited number of suppliers in
order to maintain quality and cost control and to increase
the suppliers' commitment to the Company.  The Company
relies upon, and expects to continue to rely upon, several
single source suppliers for critical components.  During
fiscal 2006, the Company purchased approximately $932,000
of raw materials from one vendor, which represented
approximately 14% of materials used in products sold during
the year.  There were no such concentrations in fiscal
2007.



                                      F-22


<PAGE>


                CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         SEPTEMBER 30, 2007 AND 2006


Note 14 -  SEGMENT INFORMATION
Segment information has been presented on a basis
consistent with how business activities are reported
internally to management.  Management solely evaluates
operating profit by segment by direct costs of
manufacturing its products without an allocation of
indirect costs.  In determining the total revenues by
segment, freight income and sales discounts and allowances
are not allocated to each of the segments for internal
reporting purposes.  The Company has four operating
segments that assemble, manufacture, and sell a variety of
products: ATV Accessories, Plastic Wheel Covers, Weekend
Warrior, and Contract Manufacturing.  ATV Accessories is
engaged in the design, assembly, and sale of ATV
accessories such as snowplow blades, lawnmowers, spreaders,
sprayers, tillage equipment, winch mounts, utility boxes,
and oil filters.  Plastic Wheel Covers manufactures and
sells injection-molded plastic wheel covers for vehicles
such as golf cars and light-duty trailers.  Weekend
Warrior, previously Lawn and Garden, is engaged in the
design, assembly, and sale of utility vehicle accessories
that include lawnmowers, spreaders, sprayers, tillage
equipment, and soft goods.  Contract Manufacturing is
engaged in the design, manufacture and assembly of a wide
array of parts, components, and other products for non-
competing Original Equipment Manufacturers (OEM) and other
businesses.  The significant accounting policies of the
operating segments are the same as those described in Note
1.  Sales of snowplow blades comprised approximately 58%
and 68% of ATV Accessories revenues during fiscal 2007 and
fiscal 2006, respectively.  Sales of snowplow blades
comprised approximately 43% and 51% of the Company's
consolidated total revenues during fiscal 2007 and fiscal
2006, respectively.

ATV Accessories sales comprised approximately 73% and 74%
the Company's consolidated total revenues during fiscal
2007 and fiscal 2006, respectively.  Contract Manufacturing
sales comprised approximately 12% and 11% of the Company's
consolidated total revenues during fiscal 2007 and 2006,
respectively.  While Plastic Wheel Covers sales comprised
approximately 13% and 10% of the Company's consolidated
total revenues during fiscal year 2007 and 2006,
respectively.



                                      F-23

<PAGE>


                CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         SEPTEMBER 30, 2007 AND 2006



Note 14 -  SEGMENT INFORMATION
(Cont.)	The following is a summary of certain financial information
related to the four segments:

                                                 2007           2006
Total Revenues by Segment
  ATV Accessories                            $ 10,550,309    $ 12,396,341
  Plastic Wheel Covers                          2,003,626       1,777,953
  Contract Manufacturing                        1,738,298       1,834,814
  Weekend Warrior                                 358,524         814,325
                                             -------------   -------------

    Total Revenues by Segment                $ 14,650,757    $ 16,823,433

  Freight Income                                   79,387         117,497
  Sales Discounts and Allowances              (   515,894)    (   476,716)
                                             -------------   -------------

    Total Combined Revenue                   $ 14,214,250    $ 16,464,214
                                             =============   =============

Operating Profit by Segment
  ATV Accessories                            $  6,397,081    $  6,488,104
  Plastic Wheel Covers                          1,189,380         725,678
  Contract Manufacturing                          888,083         723,707
  Weekend Warrior                                 165,846         323,172
  Freight Income                                   79,387         117,497
  Sales Allowances                            (   515,894)    (   476,716)
  Factory Overhead                            ( 3,322,502)    ( 1,827,204)
  Selling, General and
   Administrative                             ( 4,018,875)    ( 4,707,215)
  Interest Income (Expense), Net              (   325,336)    (   423,584)
  Other Income (Expense), Net                      71,103     (   110,562)
  Income Tax Expense                          (   190,131)    (   221,083)
                                             -------------   -------------

    Net Income                               $    418,142    $    611,794
                                             =============   =============

Identifiable Assets
  ATV Accessories                            $ 18,012,012    $ 18,233,784
  Plastic Wheel Covers                            662,574         791,944
  Contract Manufacturing                        2,705,695       2,172,084
  Weekend Warrior                               1,521,555       1,590,669
                                             -------------   -------------

    Total Identifiable Assets                $ 22,901,836    $ 22,788,481

Corporate and Other Assets                      3,332,487       3,690,469
                                             -------------   -------------

    Total Assets                             $ 26,234,323    $ 26,478,950
                                             =============   =============



                                      F-24


<PAGE>


                CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         SEPTEMBER 30, 2007 AND 2006




Note 14 -  SEGMENT INFORMATION
(Cont.)
                                                 2007           2006

Depreciation by Segment
  ATV Accessories                            $    400,413    $    410,818
  Plastic Wheel Covers                             81,679          92,745
  Contract Manufacturing                           86,187          79,360
  Weekend Warrior                                  34,983          35,084
  Corporate and Other                             208,130         211,479
                                             -------------   -------------
    Total Depreciation                       $    811,392    $    829,486
                                             -------------   -------------
Capital Expenditures by Segment
  ATV Accessories                            $     80,566    $    205,231
  Plastic Wheel Covers                             74,580          89,964
  Contract Manufacturing                           17,051          18,703
  Weekend Warrior                                   5,476          18,407
  Corporate and Other                              67,662         246,158
                                             -------------   -------------
    Total Capital Expenditures               $    245,335    $    578,463
                                             =============   =============


The following is a summary of the Company's revenue in
different geographic areas during the years ended September
30, 2007 and 2006:

                                                      2007         2006

		United States   		$ 12,140,210	$ 14,586,031
                Other Countries                    2,074,040       1,878,183
                                                -------------   -------------
		     Total Revenue   		$ 14,214,250	$ 16,464,214
                                                =============   =============

As of September 30, 2007 and 2006, all of the Company's
long-lived assets are located in the United States of
America.  During fiscal 2007 and 2006, ATV Accessories had
sales to individual customers which exceeded 10% of total
revenues, as described in Note 14.  Plastic Wheel Covers,
Weekend Warrior, and Contract Manufacturing did not have
sales to any individual customer greater than 10% of total
revenues during fiscal 2007 and 2006.


Note 15 -  RELATED PARTY TRANSACTIONS
During the year ended September 30, 2007, the Company had
non-eliminated related party transactions comprising
$93,000 of revenue of which $19,660 remained in accounts
receivable.


                                      F-25


<PAGE>


                CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         SEPTEMBER 30, 2007 AND 2006





Note 16 -  RISK OF SEASONALITY AND WEATHER - The ATV accessories market
is seasonal as retail sales of snowplow equipment are
generally higher in the fall and winter, and sales of farm
and garden equipment are generally higher in the spring and
summer.  Accordingly, demand for the Company's snowplow
equipment is generally higher in the late summer and fall
(the Company's fourth and first fiscal quarters) as
distributors and dealers build inventories in anticipation
of the winter season, and demand for the Company's farm and
garden and golf equipment is generally highest in the late
winter and spring (the Company's second and third fiscal
quarters) as distributors and dealers build inventories in
anticipation of the spring season.

Demand for snowplow, farm and garden, and golf equipment is
significantly affected by weather conditions.  Unusually
cold winters or hot summers increase demand for these
aforementioned products.  Mild winters and cool summers
usually have the opposite effect.


Note 17 -  COMMITMENTS AND CONTINGENCIES
Letters of Credit - Letters of credit are purchase
guarantees that ensure the Company's payment to third
parties in accordance with specified terms and conditions
which amounted to approximately $210,500 and $188,400, as
of September 30, 2007 and 2006, respectively.

Employment Agreement - The Company entered into an
employment agreement with their President, effective
September 11, 2006, for a period of three years.  The
agreement contains automatic three year extensions and
calls for an annual salary plus bonus equal to three
percent (3%) of the Companies pre-tax net income growth
over the average pre-tax net income of a three year base
(fiscal 2004, 2005 and 2006) beginning in fiscal 2007.  The
agreement provides for $100,000 in restricted Company
common stock with 25% issued upon the first day of
employment and 25% issued each anniversary date for the
next three years as an employment bonus.  The value of the
entire restricted stock award was determined by the closing
price on the Presidents first day of employment.  The
agreement also provides for standard benefits such as
health insurance coverage, 401(K) retirement savings plan,
sick and vacation time, and cafeteria plan.






                                      F-26


<PAGE>


                CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         SEPTEMBER 30, 2007 AND 2006




Note 17 -  COMMITMENTS AND CONTINGENCIES
(Cont.)	Purchase Obligations - At September 30, 2007 and 2006, the
Company has purchase obligations for materials in the
amount of $288,211 and $273,965, respectively, to be
satisfied within fiscal 2008.


Note 18 -  LEGAL PROCEEDINGS
Prior to the merger, Simonsen Iron Works Inc. was named a
defendant in a wage discrimination lawsuit filed by Lori
Christenson in the Iowa District Court in and for Clay
County, IA (Case No. LACV 25639) that was filed on November
13, 2003.  The suit was filed seeking monetary damages
under the Equal Pay Act and for Retaliatory Discharge.
Upon a motion for summary judgment sought by Simonsen, the
court dismissed the count based on the Equal Pay Act during
the third quarter of fiscal 2005.  At that time the court
allowed the retaliatory discharge claim but Simonsen
subsequently filed a motion to reconsider and dismiss this
charge as well.  During the first quarter of fiscal 2006
the court ruled on this motion to reconsider and denied the
motion, the remaining portion of the case went to trial
during the week of July 30, 2007.  The jury returned a
verdict in favor of the Company, awarding no monetary
amount to the plaintiff, Lori Christenson.


Note 19 -  SUBSEQUENT EVENT
On November 14, 2007, the Company sold its Milford, Iowa
property to a related party in exchange for all of their
Cycle Country common shares.  The total number of shares
was 1,410,730 with a value on the closing date of the
transaction of $2,581,636.  The Company now leases
approximately 90% of the facility from the aforementioned
related party under a three year triple net lease that
contains two one year renewal options.  The annual lease
cost is $185,104 payable in monthly installments.  The
Company placed the common shares acquired into treasury
stock to be used at a later date for acquisitions,
mergers, or major capital additions that may arise in the
future.



                                      F-27




                           SUPPLEMENTARY INFORMATION



<PAGE>





          INDEPENDENT AUDITORS' REPORT ON SUPPLEMENTARY INFORMATION
          ---------------------------------------------------------




To the Board of Directors
  of Cycle Country
  Accessories Corp. and Subsidiaries
Milford, Iowa


Our report on the consolidated financial statements of Cycle Country
Accessories Corp. and Subsidiaries for the years ended September 30,
2007 and 2006, appears on page 1.  The audits were conducted for the
purpose of forming an opinion on the basic consolidated financial
statements taken as a whole.  The supplementary information in Schedules
1 and 2 pertaining to fiscal 2007 and 2006 is presented for purposes of
additional analysis and is not a required part of the basic consolidated
financial statements.  Such information has been subjected to the
auditing procedures applied in the audits of the basic consolidated
financial statements and, in our opinion, is fairly stated in all
material respects in relation to the basic consolidated financial
statements for the years ended September 30, 2007 and 2006, taken as a
whole.




                            Certified Public Accountants

/s/Henjes, Conner & Williams, P.C.
Sioux City, Iowa
December 24, 2007







                                      F-28



<PAGE>


CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES	SCHEDULE 1

CONSOLIDATED SCHEDULE OF GROSS PROFIT

FOR THE YEARS ENDED SEPTEMBER 30, 2007 AND 2006





                                         2007                    2006
                                                % of                    % of
                                  Amount      Revenue     Amount       Revenue
                            ------------      -------  ------------    -------

TOTAL NET SALES             $ 14,214,250      100.0 %  $ 16,464,214    100.0 %

DIRECT MANUFACTURING COSTS
  Materials Purchased       $  5,841,235       41.1 %  $  6,821,355     41.4 %
  Salaries - Direct            1,260,644        8.9       1,621,395      9.9
  Royalty                         67,800         .5         119,753       .7
  Other                                -         -              269        -
                            -------------      ------  -------------    ------
                            $  7,169,679       50.5 %  $  8,562,772     52.0 %

FACTORY OVERHEAD
  Salaries - Administrative $    245,788        1.7 %   $   246,524     1.5 %
  Salaries - Other               117,526         .8          96,412      .6
  Salaries - Officers             91,876         .6          96,272      .6
  Depreciation and
   Amortization                  624,834        4.4         185,781     1.2
  Freight                        124,857         .9         149,605      .9
  Insurance                      168,112        1.2         143,652      .9
  Payroll Taxes                  171,194        1.2          88,198      .5
  Repair and Maintenance         137,026        1.0         167,047     1.0
  Utilities                      296,387        2.1         252,077     1.6
  Employee Health Insurance      236,325        1.7          83,066      .5
  Other Production Costs     (   348,727)    (  2.5)         56,231      .3
  Legal and Accounting            13,990         .1          16,305      .1
  Other Professional Fees         16,595         .1               -       -
  Real Estate Taxes               90,386         .6          99,975      .6
  Instruction Supplies             5,039          -           6,382       -
  Other Employee Benefits          3,677          -               -       -
  Office and Shipping Supplies
   and Postage                    18,396         .1          17,769      .1
  Shop Supplies                   65,965         .5          66,277      .4
  Contract Labor                  83,944         .6          55,631      .3
                            -------------     ------   -------------  ------
    Total Factory
      Overhead              $  2,163,190       15.1 %  $  1,827,204    11.1 %
                            -------------     ------   -------------  ------
    Total Cost of Goods
      Sold                  $  9,332,869       65.6 %  $ 10,389,976    63.1 %
                            -------------     ------   -------------  ------

    Gross Profit            $  4,881,381       34.4 %  $  6,074,238    36.9 %
                            =============     ======   =============  ======


See the Accompanying Independent Auditors'
Report on Supplementary Information

                                      F-29


CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARIES	SCHEDULE 2

CONSOLIDATED SCHEDULE OF SELLING, GENERAL
       AND ADMINISTRATIVE EXPENSES

FOR THE YEARS ENDED SEPTEMBER 30, 2007 AND 2006


                                         2007                    2006
                                                % of                    % of
                                  Amount      Revenue     Amount       Revenue
                            ------------      -------  ------------    -------
SELLING, GENERAL AND
 ADMINISTRATIVE EXPENSES
  Salaries - Administrative  $   400,216       2.8 %   $   448,619     2.7 %
  Salaries - Officers            478,043       3.5         509,287     3.1
  Salaries - Shipping            143,472       1.0         218,866     1.3
  Salaries - Engineering         227,011       1.6         155,130      .9
  Advertising                    482,737       3.5         531,503     3.2
  Shipping and Handling Costs    187,664       1.3         185,613     1.2
  Legal and Accounting           125,911        .9         146,741      .9
  Depreciation and
   Amortization                  198,894       1.4         664,935     4.0
  Insurance                      264,522       1.9         267,752     1.6
  Office and Shipping Supplies
   and Postage                   161,285       1.1         120,191      .7
  Fuel and Fuel Tax               26,668        .2          74,192      .5
  Commissions                    158,688       1.1         110,352      .7
  Payroll Taxes and Other
   Employee Benefits             171,925       1.2         220,083     1.3
  Retirement Plan Contribution    18,385        .1          21,597      .1
  Other Professional Fees        412,894       2.9         338,286     2.1
  Repairs and Maintenance         14,654        .1          30,995      .2
  Employee Health Insurance       82,864        .6         289,521     1.8
  Telephone                       39,983        .3          35,970      .2
  Travel and Meals                85,192        .6          61,141      .4
  Warranty                        48,435        .3          23,788      .2
  Show Expense                    34,073        .2          31,138      .2
  Research and Development        23,457        .2          10,806      .1
  Real Estate Tax                 64,282        .5          42,757      .2
  Shop Supplies                    5,141         -          41,972      .2
  Subscriptions and Dues          19,240        .1          16,153      .1
  Utilities                       24,000        .2          24,000      .2
  Bonuses - Officers              34,272        .2          25,775      .2
  Contract Labor                  37,613        .3          13,067      .1
  Contributions                   19,274        .1          12,931      .1
  Promotions                       3,249         -           1,919       -
  Bad Debts                           85         -           9,094      .1
  Director Fees                    3,500         -           7,500       -
  Lease Expense                    5,292         -           5,292       -
  Miscellaneous                   15,954        .1          10,249      .1
                             ------------    ------    ------------   ------
    Total Selling, General
     and Administrative
     Expenses                $ 4,018,875      28.3 %   $ 4,707,215     28.7 %
                             ============    ======    ============   ======



See the Accompanying Independent Auditors'
Report on Supplementary Information

                                      F-30




<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, on December 28, 2007.

        CYCLE COUNTRY ACCESSORIES CORP.

	By:	/s/ Randy Kempf
		Randy Kempf
		Principal Executive Officer and
                President


	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 indicated on December 28, 2007.

By:	/s/ Randy Kempf		Principal Executive Officer and President
	Randy Kempf

By:     /s/ David Davis         Principal Financial Officer and
	David Davis		Principal Accounting Officer


By:	/s/ F.L. Miller		Director
	F.L. Miller

By:     /s/ L.G. Hancher Jr.    Director
	L.G. Hancher Jr.

By:     /s/ Rod Simonson        Director
	Rod Simonson

By:	/s/ Alan Bailey		Director
	Alan Bailey


<PAGE>