SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934.
Date of report: September 9, 2002
Sonic Jet Performance, Inc.
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(Exact Name of Registrant as Specified in Its Charter)
Colorado 84-1383888
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(State or Other Jurisdiction of (I.R.S. Employer identification No.)
Incorporation or Organization)
15662 Commerce Lane, Huntington Beach, CA 92649
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(Address of principal executive offices) (ZIP Code)
(714) 895-0944
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(Registrant's Telephone Number, Including Area Code)
Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
ITEM 1. CHANGE IN CONTROL OF REGISTRANT
NONE
ITEM 2. ACQUISITION OR DISPOSAL OF ASSETS
On June 13, 2002, Sonic Jet Performance, Inc. ("Sonic Jet") Entered into
a Stock Purchase Agreement with Technical Solutions G, Inc. a Nevada Corporation
("TSG"), Garth Barrett, an individual, and TS Group, LLC, a Texas Limited
Liability Company (hereinafter collectively known as the "Seller") whereby Sonic
Jet purchased 100% of the issued and outstanding common stock from.
In exchange for the Common Stock of Seller, Sonic Jet agrees to deliver
Four Hundred Thousand Dollars ($400,000) of working capital and exchange six
million shares (6,000,000) of Sonic Jet. The shares will be allocated as
follows:
(i)Garth Barrett, to receive 2,000,000 share of Sonic Jet Common Stock
in exchange for 8,000 shares of TSG Common Stock.
(ii) TS Group, LLC to receive (4,000,000) share of Sonic Jet Common Stock which
is subject to a security interest from a note due to TSG from TS Group.
As a result of the transactions TSG will become a wholly owned subsidiary of
Sonic Jet. TSG manufactures a line of specialty vehicles for the military and
law enforcement markets. Sonic and Shareholders agree that the structure for the
acquisition of TSG shares by Sonic will be deemed a tax-free transaction.
ITEM 3. BANKRUPTCY OR RECEIVERSHIP
NONE
ITEM 4. CHANGES IN REGISTRANT'S CERTIFIYING ACCOUNTING
NONE
ITEM 5. OTHER EVENTS
NONE
ITEM 6. RESIGNATION OF REGISTRANT'S DIRECTORS
NONE
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial statements of businesses acquired:
The financial statements required by this item are not included herewith and
will be filed within 60 days of the required filing date of this Form 8-K.
(b) Pro forma financial information:
Sonic Jet Performance, Inc. Consolidated Balance Sheet (assets) F-2
Sonic Jet Performance, Inc. Consolidated Balance Sheet (liabilities) F-3
Sonic Jet Performance, Inc. Consolidated Statement of Operations F-4
Notes to Pro Forma Financial Statements F-5
(c) Exhibits:
2.1 Stock Purchase Agreement between, Sonic Jet
Performance, Inc., a Colorado corporation ("Sonic"),
and Technical Solutions Group, Inc.
a Nevada Corporation ("TSG"), Garth Barrett, an individual, and TS Group, LLC, a
Texas Limited Liability Company (collectively referred to as the "Sellers").
ITEM 8. CHANGE IN FISCAL YEAR
None.
ITEM 9. REGULATION FD DISCLOSURE
None.
Sonic Jet Performance, Inc. and Subsidiaries
Pro Forma Consolidated Financial Statements
For the Six-Month Period Ended June 30, 2002
Michael Johnson & Co., LLC.
9175 E. Kenyon Avenue, Suite 100
Denver, CO 80237
Phone: 303-796-0099
Fax: 303-796-0137
PRO FORMA CONSOLIDATED FINANCIAL DATA
The Unaudited Pro Forma Consolidated Balance Sheet and the Unaudited
Consolidated Statement of Operations of Sonic Jet Performance, Inc. ("the
Company") have been prepared to illustrate the estimated effect of the
acquisition of Technical Solutions Group, Inc. (TSG) as if it had occurred on
January 1, 2002. The acquisition was accounted for by the purchase method of
accounting. The Pro Forma Financial Statements do not purport to be indicative
of the results of operations or financial position of the Company that would
have actually been obtained had such transactions been completed as of the
assumed dates and for the period presented, or which may be obtained in the
future. The pro forma adjustments are described in the accompanying notes and
are based upon available information and certain assumptions that the Company
believes are reasonable.
A preliminary allocation of the purchase price has been made to major categories
of assets and liabilities in the accompanying Pro Forma Financial Statements
based on available information. The actual allocation of purchase price and the
resulting effect on income from operations may differ significantly from the pro
forma amounts included herein. These pro forma adjustments represent the
Company's preliminary determination of purchase accounting adjustments and are
based upon available information and certain assumptions that the Company
believes to be reasonable. Consequently, the amounts reflected in the Pro Forma
Financial Statements are subject to change, and the final amounts may differ
substantially.
The accompanying Pro Forma Consolidated Financial Statements should be read in
conjunction with the historical financial statements and related notes thereto
for Sonic Jet Performance, Inc. and Technical Solutions Group, Inc.
/s/ Michael Johnson & Co., LLC.
Michael Johnson & Co., LLC.
Denver, Colorado
September 5, 2002
F-1
SONIC JET PERFORMANCE, INC. AND SUBSIDIARIES
Pro Forma Consolidated Balance Sheet
June 30, 2002
Sonic Jet Technical Pro Pro Forma
Performance, Solution Group, Forma Consolidated
Inc. Inc. Adjustments Balances
------------- ------------- -----------------------------
ASSETS:
Current Assets:
Cash $ 90,711 $ 3,102 $ - $ 93,813
Restricted cash 166,457 - - 166,457
Accounts receivable 86,582 1,338 - 87,920
Note Receivable - 458,729 - 458,729
Investment 50,000 - (3) (50,000) -
Inventories 182,970 - - 182,970
Other current assets 2,506 - - 2,506
------------- ------------- ------------ -------------
Total Current Assets 579,226 463,169 (50,000) 992,395
------------- ------------- ------------ -------------
Property and Equipment, net 1,109,217 214,892 - 1,324,109
------------- ------------- ------------ -------------
Other Assets:
Acquisition - - (1) 1,200,000 1,200,000
Licensing rights 267,500 - - 267,500
------------- ------------- ------------ -------------
Total Other Assets 267,500 - 1,200,000 1,467,500
------------- ------------- ------------ -------------
TOTAL ASSETS $ 1,955,943 $ 678,061 $1,150,000 $ 3,784,004
============= ============= ============ =============
F-2
SONIC JET PERFORMANCE, INC. AND SUBSIDIARIES
Pro Forma Consolidated Balance Sheet
June 30, 2002
(Unaudited)
Sonic Jet Technical Pro Pro Forma
Performance, Solution Group, Forma Consolidated
Inc. Inc. Adjustments Balances
-------------- -------------- ----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current Liabilities:
Accounts payable $ 421,416 $ 746,481 $ - $ 1,167,897
Advance from Customers - 974,980 - 974,980
Accrued payroll taxes 50,575 - - 50,575
Accrued interest and other expenses 255,254 47,396 - 302,650
Line of credit - 81,314 - 81,314
Loan from shareholder 55,000 15,689 - 70,689
-------------- -------------- ----------- -----------
Total Current Liabilities 782,245 1,865,860 - 2,648,105
-------------- -------------- ----------- -----------
Long-term Liabilities;
Notes Payable - 799,700 (3) (50,000) 749,700
-------------- -------------- ----------- -----------
Total Long-term Liabilities - 799,700 (50,000) 749,700
-------------- -------------- ----------- -----------
TOTAL LIABILITIES 782,245 2,665,560 (50,000) 3,397,805
-------------- -------------- ----------- -----------
Stockholders' Equity:
Preferred stock 365,000 - - 365,000
Common stock 12,648,235 24,000 (2) (24,000) 13,848,235
- (1) 1,200,000
Additional Paid in Capital - 458,729 (2) (458,729) -
Accumulated deficit (11,839,537) (2,470,228) (2) 482,729 (13,827,036)
-------------- -----------
-------------- -----------
Total Stockholders' Equity 1,173,698 (1,987,499) 1,200,000 386,199
-------------- -------------- ----------- -----------
-
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,955,943 $ 678,061 $ 1,150,000 $ 3,784,004
============== ============== =========== ===========
F-3
SONIC JET PERFORMANCE, INC. AND SUBSIDIARIES
Pro Forma Consolidated Statement of Operations
For the Six-Months Ended June 30, 2002
(Unaudited)
Sonic Jet Technical Pro Pro
Performance Solutions Forma Forma
Inc. Group, Inc. Adjustments Combined
---------------- --------------- ----------------- ---------------
REVENUES: $ 362,632 $ 748,700 $ - $ 1,111,332
COST OF SALES 209,614 1,058,568 - 1,268,182
---------------- --------------- ----------------- ---------------
GROSS PROFIT 153,018 (309,868) - (156,850)
---------------- --------------- ----------------- ---------------
OPERATING EXPENSES:
Sales, General and Administrative 1,018,189 969,804 - 1,987,993
---------------- --------------- ----------------- ---------------
Total Operating Expenses 1,018,189 969,804 - 1,987,993
---------------- --------------- ----------------- ---------------
-
Net Loss from Operations (865,171) (1,279,672) - (2,144,843)
-
OTHER INCOME/EXPENSES -
Other income 31,426 52 - 31,478
Interest income 3,213 - - 3,213
Interest expenses - (18,363) - (18,363)
---------------- --------------- ----------------- ---------------
34,639 (18,311) - 16,328
---------------- --------------- ----------------- ---------------
-
NET LOSS $ (830,532) $(1,297,983) $ - $(2,128,515)
================ =============== ================= ===============
Net Loss Per Share $ (0.03) $ (0.21) $ (0.06)
================ =============== ===============
Weighted average number of
shares outstanding 27,928,115 6,000,000 33,928,115
================ =============== ===============
F-4
Notes to the Pro Forma Balance Sheet at June 30, 2002
(1) The estimated purchase price and preliminary adjustments to historical
book value of Sonic Jet Performance as a result of the TSG acquisition
as follows:
Purchase price:
Estimate value of stock issued $1,200,000
Book value of net assets acquired 1,172,245
Adjustment to reflect fair market value of net assets (1,172,245)
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Purchase price in excess of net assets acquired $1,200,000
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Preliminary allocation of purchase price in excess of net assets
required:
Estimated goodwill $1,200,000
(2) The adjustments to additional paid-in capital, accumulated deficit, and
capital stock as a result of the TSG acquisition:
Elimination of TSG additional paid in capital $(458,729)
Elimination of TSG pre business combination
accumulated deficit 482,729
Elimination of TSG capital stock (24,000)
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Total $ 0
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(3) The adjustments to eliminate intercompany receivables and payables as a
result of the TSG acquisition:
Investment $(50,000)
Notes Payable 50,000
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Total $ 0
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F-5
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
The Registrant has duly caused this report to be signed on its behalf by
theTundersigned, thereunto duly authorized.
SONIC JET PERFORMANCE, INC.
By: /s/ Madhava Rao Mankal
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Date: September 9, 2002
Madhava Rao Mankal,
Chief Financial Officer/Secretary