On September 12, 2002, at 1715 central daylight time, an amateur-built Terning Sky Scout, N174BT, sustained substantial damage when it impacted the terrain during initial climb after takeoff. The pilot received serious injuries. The 14 CFR Part 91 personal flight was departing from the pilot's private grass airstrip on a local flight. Visual meteorological conditions prevailed and no flight plan was filed. A friend of the pilot reported the pilot does not remember the events concerning the accident. He reported the pilot's wife observed the accident. She reported that it was the third flight of the day. She watched the airplane takeoff and then heard the engine quit shortly after takeoff. A Federal Aviation Administration inspector reported the airplane impacted the terrain in a steep nose down attitude. The airplane moved about six feet after impact. The left wing outboard of the wing strut was buckled aft. Both wings exhibited leading edge crush damage. No pre-impact anomalies to the engine or airframe were noted.