According to a Federal Aviation Administration (FAA) inspector, the unregistered airplane did not meet the requirements for an ultralite airplane, and did not have a waiver. The pilot did not hold an FAA pilot certificate. The pilot took off from a private airstrip and performed several touch-and-go landings. He then landed, picked up a passenger, and took off. After the airplane climbed about 40 feet, it turned slightly, stalled, and descended rapidly before colliding with terrain.