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

Trends and Uncertainties. Demand for the Corporation's services and products are dependent on, among other things, general economic conditions that are cyclical in nature. Inasmuch as a major portion of the Corporation's activities are the receipt of revenues from its driving school services and products, the Corporation's business operations may be adversely affected by the Corporation's competitors and prolonged recessionary periods.

There are no known trends, events or uncertainties that have or are reasonably likely to have a material impact on the corporation's short term or long term liquidity. Sources of liquidity both internal and external will come from the sale of the corporation's services and products as well as the private sale of the Corporation's stock. There are no trends, events or uncertainties that have had or are reasonably expected to have a material impact on the net sales or revenues or income from continuing operations. There are no significant elements of income or loss that do not arise from the Corporation's continuing operations. There are no known causes for any material changes from period to period in one or more line items of the corporation's financial statements.

The Corporation currently has classes planned through December 2012.

Capital Resources and Source of Liquidity. The Corporation currently has no material commitments for capital expenditures. The Corporation has no plans for future capital expenditures, such as additional race cars, at this time.
However, the Corporation is committed to approximately $345,000 in track usage fees for the remainder of 2012.

The Corporation believes that there will be sufficient capital from revenues to conduct operations for the next twelve months.

Presently, the Corporation's revenue and cash comprises one hundred percent of the total cash necessary to conduct operations. Future revenues from classes and events will determine the amount of additional financing necessary to continue operations.

The board of directors has no immediate offering plans in place. The board of directors shall determine the amount and type of financing as the Corporation's financial situation dictates.

For the six months ended June 30, 2012, the Corporation purchased property and equipment of $27,483 resulting in net cash used in investing activities of $27,483.

Comparatively, for the six months ended June 30, 2011, the Corporation purchased property and equipment of $5,000 resulting in net cash used in investing activities of $5,000.

For the six months ended June 30, 2012, the Corporation repaid long-term debt of $28,014. As a result, the Corporation had net cash used in financing activities of $28,014 for the six months ended June 30, 2012.

Comparatively, for the six months ended June 30, 2011, the Corporation repaid long-term debt of $12,369. As a result, the Corporation had net cash used in financing activities of $12,369 for the six months ended June 30, 2011.

On a long term basis, liquidity is dependent on continuation of operation and receipt of revenues.

Results of Operations. For the three months ended June 30, 2012, the registrant had sales of $972,676 with cost of sales and services of $479,863 for a gross profit of $492,813.

Comparatively, for the three months ended June 30, 2011, the registrant had sales of $751,274 with cost of sales of $302,679 for a gross profit of $448,595.

The increase in revenue of $221,402, or 29.5%, also had a corresponding increase in the cost of sales and services of $177,184, or 58.5%. The gross profit percentage decreased from 59.7% for the three months ended June 30, 2011 to 50.7% for the three months ended June 30, 2012. This decrease is due to the addition of Las Vegas as a new venue during the three month period ended June 30, 2012 when compared to the same period for 2011.

For the three months ended June 30, 2012, the registrant had general and administrative expenses of $465,055. Comparatively, for the three months ended June 30, 2011, the registrant had general and administrative expenses of $433,085. The percentage of general and administrative expenses to revenues for the three months ended June 30, 2012 decreased to 47.8% from 57.6% for the three months ended June 30, 2011 due to increased revenue without a corresponding increase in administrative expenses.

For the six months ended June 30, 2012, the registrant had sales of $1,676,699 with cost of sales and services of $885,838 for a gross profit of $790,861.

Comparatively, for the six months ended June 30, 2011, the registrant had sales of $1,290,535 with cost of sales of $580,371 for a gross profit of $710,164.

The increase in revenue of $386,164, or 29.9%, also had a corresponding increase in the cost of sales and services of $305,467, or 52.6%. The gross profit percentage decreased from 55.0% for the six months ended June 30, 2011 to 47.2% for the six months ended June 30, 2012. This decrease is due to the addition of Las Vegas as a new venue during the six month period ended June 30, 2012.

For the six months ended June 30, 2012, the registrant had general and administrative expenses of $924,743. Comparatively, for the six months ended June 30, 2011, the registrant had general and administrative expenses of $851,136. The percentage of general and administrative expenses to revenues for the six months ended June 30, 2012 decreased to 55.2% from 66.0% for the six months ended June 30, 2011 due to increased revenue without a corresponding increase in administrative expenses.