Viper Powersports (VPWI)

Description:

Viper Powersports, Inc. was incorporated in Nevada in 1980. On March 31, 2005 the Company was recapitalized through a merger with Viper Motorcycle Company, a Minnesota Corporation. Upon completion of this reverse merger, Viper Motorcycle Company became a wholly-owned subsidiary of Viper Powersports Inc. It is a development stage Company. Since inception, it has been engaged in designing, developing and commencing commercial marketing and production of premium custom heavyweight V-Twin motorcycles popularly known as 'cruisers', as well as a premium innovative proprietary V-Twin engine to power its Viper cruisers. Motorcycles are generally characterized in their industry by weight, mainly based on engine displacement size. Viper cruisers fall within the heavyweight motorcycle category which typically includes models with engine displacement of at least 651cc (cubic centimeters). There are generally four types of heavyweight motorcycles: Standard, which emphasize simplicity and low cost; Performance, which emphasize handling and speed; Touring, which emphasize rider comfort and distance travel and Cruiser, designed to facilitate customization by owners. The Company has completed development and commercial production of its innovative proprietary engine technology. Its manufacturing operations consist of in-house production of certain components and parts, assembly and polishing components, and conducting quality control of in-process and finished motorcycles. Motorcycle body, engine and electrical components and parts are outsourced for production to its specifications to various experienced manufacturers of motorcycle components, including engine components, fenders, gas tanks and electrical harnesses and wiring. Other key components are purchased off-the-shelf from various independent manufacturers and distributors mostly located in the United States, including brake and suspension systems, handlebars, transmissions and clutches, drive belts, ignition starters, seats, tires and wheels, panel indicators, lights and batteries. It sells its motorcycles directly to its authorized Viper dealers. Its dealer network includes well-established, independent full-service dealers offering more than one motorcycle brand. It develops and produces proprietary premium motorcycle products targeted to consumers who could afford to purchase upscale luxury products. The heavyweight motorcycle market is highly competitive. Its main competitor is Harley-Davidson, which for years has dominated the custom cruiser segment of the motorcycle marketplace. Other competitors include Polaris with its Victory motorcycle brand, BMW, Honda, Suzuki, Yamaha, Kawasaki, Moto Guzzi, Ducati and Triumph. Direct competition in the upscale cruiser market includes Big Dog, American IronHorse, Bourget's Bike Works and others. Motorcycles sold in the United States, European Union countries, Canada and other countries are subject to established environmental emissions regulations and safety standards.