Titan Environmental Solutions Inc 8-K/A, filed Mar 18, 2021
Titan Environmental Solutions Inc. (TESI)
About this 8-K/A
Titan Environmental Solutions Inc filed this 8-K/A on March 18, 2021, reporting on events of January 25, 2021.
Items reported
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
AMENDMENT TO CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported) January 25, 2021
TRAQIQ, INC.
(Exact Name of Registrant as Specified in its Charter)
| California | 333-172658 | 30-0580318 | ||
|
(State
or other jurisdiction |
(Commission
|
(IRS
Employer |
14205 SE 36th Street, Suite 100, Bellevue, WA 98006
(Address of principal executive offices) (zip code)
Registrant’s telephone number, including area code (425) 818-0560
(Former name or former address, if changed since last report.)
Copies to:
Sam Schmutte, Esq.
Alerding Castor LLP
47 S. Pennsylvania St., Ste 700
Indianapolis, IN 46204
Phone: 317.829.1910
Fax: 317.423.2089
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) |
Name of each exchange on which registered | ||
| None |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 305 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company [X]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
| Item 9.01 | Financial Statements and Exhibits. |
| (b) | Pro forma Financial Information. |
The Company is filing this amendment to provide pro forma financial information in connection with its acquisition of Rohuma, LLC, a Delaware limited liability company.
| (c) | Exhibits |
Exhibit Number |
Description | |
| Ex 99.3* | Pro forma financials |
| 2 |
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 the undersigned hereunder duly authorized.
| TRAQIQ, INC. | |
| Date: March 17, 2021 | /s/Ajay Sikka |
| Ajay Sikka | |
| Chief Executive Officer |
| 3 |
TRAQIQ, INC. AND SUBSIDIARIES
PROFORMA CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 2020
| TRAQ | ROHUMA | ADJUSTMENTS | CONSOLIDATED | |||||||||||||||||||
| ASSETS | ||||||||||||||||||||||
| CURRENT ASSETS | ||||||||||||||||||||||
| Cash | $ | 2,606 | $ | 7,225 | $ | 27,052 | B | $ | 36,883 | |||||||||||||
| Accounts receivable, net of allowance | 531,861 | 13,412 | B | 2,064 | 543,209 | |||||||||||||||||
| Note receivable - related party | 203,755 | - | 24,122 | B | 227,877 | |||||||||||||||||
| Prepaid expenses and other current assets | 276,855 | 7,593 | 45,431 | B | 329,879 | |||||||||||||||||
| Total current assets | 1,015,077 | 28,230 | 96,605 | 2,064 | 1,137,848 | |||||||||||||||||
| Fixed assets, net | 37,824 | 4,799 | B | 1,451 | 41,172 | |||||||||||||||||
| Intangible assets, net | 452,894 | - | B | 8,310 | 444,584 | |||||||||||||||||
| Goodwill | 4,405,903 | A | 4,405,903 | |||||||||||||||||||
| Restreicted cash | 28,455 | - | 291 | B | 28,746 | |||||||||||||||||
| Right-of-use asset | 461,175 | - | B | 335,057 | 126,118 | |||||||||||||||||
| Long-term investments | 40,192 | - | 411 | B | 40,603 | |||||||||||||||||
| Other assets | 31,521 | - | B | 28,325 | 3,196 | |||||||||||||||||
| Total non-current assets | 1,052,061 | 4,799 | 4,406,605 | 373,143 | 5,090,322 | |||||||||||||||||
| TOTAL ASSETS | $ | 2,067,138 | $ | 33,029 | $ | 4,503,210 | $ | 375,207 | $ | 6,228,170 | ||||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||||||||||||||||
| CURRENT LIABILITIES | ||||||||||||||||||||||
| Current portion of long-term debt | $ | 165,427 | $ | 7,470 | $ | 38,816 | B | $ | 134,081 | |||||||||||||
| Current portion of long-term debt - related parties | 1,536,006 | - | B | 315,572 | 1,851,578 | |||||||||||||||||
| Current portion of convertible debt - long-term debt | 241,334 | - | B | 241,334 | ||||||||||||||||||
| Cash overdraft | 273,977 | - | 30,693 | B | 243,284 | |||||||||||||||||
| Accounts payable and accrued expenses | 1,193,833 | 60,544 | 30,328 | B | 1,224,049 | |||||||||||||||||
| Current portion of lease liabilities | 56,955 | - | 48,176 | B | 8,779 | |||||||||||||||||
| Accrued payroll | 285,907 | - | B | 39,124 | 325,031 | |||||||||||||||||
| Accrued taxes and duties payable | 86,376 | - | 39,799 | B | 46,577 | |||||||||||||||||
| Total current liabilities | 3,839,815 | 68,014 | 187,812 | 354,696 | 4,074,713 | |||||||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||||||||||
| Long-term debt - related parties, net of current portion | 32,000 | - | 32,000 | B | - | |||||||||||||||||
| Lease liabilities - net of current portion | 429,870 | - | 304,651 | B | 125,219 | |||||||||||||||||
| Long-term debt, net of current portion | 100,856 | 35,776 | 88,413 | B | 48,219 | |||||||||||||||||
| Total non-current liabilities | 562,726 | 35,776 | 425,064 | - | 173,438 | |||||||||||||||||
| COMMITMENTS AND CONTINGENCIES | - | - | - | - | - | |||||||||||||||||
| Total liabilities | 4,402,541 | 103,790 | 612,876 | 354,696 | 4,248,151 | |||||||||||||||||
| STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||||||||||||||||
| Preferred Stock | 5 | - | 5 | |||||||||||||||||||
| Common Stock | 2,730 | - | A | 429 | 3,159 | |||||||||||||||||
| Additional paid-in-capital | 12,623 | 297,612 | B | 105,563 | 4,452,899 | |||||||||||||||||
| 297,612 | A | |||||||||||||||||||||
| A | 4,334,713 | |||||||||||||||||||||
| Accumulated other comprehenive income (loss) | (14,715 | ) | - | B | 9,005 | (5,710 | ) | |||||||||||||||
| Accumulated deficit | (2,336,046 | ) | (368,373 | ) | A | 368,373 | (2,470,334 | ) | ||||||||||||||
| 134,288 | B | |||||||||||||||||||||
| Total stockholders’ equity (deficit) | (2,335,403 | ) | (70,761 | ) | 431,900 | 4,818,083 | 1,980,019 | |||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | $ | 2,067,138 | $ | 33,029 | $ | 1,044,776 | $ | 5,172,779 | $ | 6,228,170 | ||||||||||||
Adjustment Notes
| A | Represents the issuance of 4,292,220 shares for the acquisition of Rohuma on January 22, 2021 (value per share was $1.01 per share on Janaury 22, 2021) | |
| B | Represents estimated change in value of assets and liabilities through January 22, 2021 from September 30, 2020. |
TRAQIQ, INC. AND SUBSIDIARIES
PROFORMA STATEMENTS OF OPERATIONS
Nine Months Ended September 30, 2020
| TRAQ | ROHUMA | ADJUSTMENTS | CONSOLIDATED | |||||||||||||||||||
| REVENUES | ||||||||||||||||||||||
| Revenue from services | $ | 739,177 | $ | 176,028 | $ | 915,205 | ||||||||||||||||
| 739,177 | 176,028 | 915,205 | ||||||||||||||||||||
| COST OF REVENUES | ||||||||||||||||||||||
| Cost of services | 399,720 | 79,691 | 479,411 | |||||||||||||||||||
| 399,720 | 79,691 | 479,411 | ||||||||||||||||||||
| GROSS PROFIT | 339,457 | 96,337 | 435,794 | |||||||||||||||||||
| OPERATING EXPENSES: | ||||||||||||||||||||||
| Salaries and salary related costs | 180,123 | 80,564 | 260,687 | |||||||||||||||||||
| Professional fees and consulting | 138,817 | 30,449 | 169,266 | |||||||||||||||||||
| General and administrative | 89,373 | 24,910 | 114,283 | |||||||||||||||||||
| Depreciation and amortization | 36,284 | 2,747 | 39,031 | |||||||||||||||||||
| Rent | 95,151 | 1,035 | B | 70,000 | 26,186 | |||||||||||||||||
| Total operating expenses | 539,748 | 139,705 | 609,453 | |||||||||||||||||||
| Gain (Loss) from operations | (200,291 | ) | (43,368 | ) | (173,659 | ) | ||||||||||||||||
| OTHER EXPENSE: | ||||||||||||||||||||||
| Other income (loss) | 10,000 | - | 25,000 | B | 35,000 | |||||||||||||||||
| Interest expense, net of interest income | (247,162 | ) | (1,592 | ) | (248,754 | ) | ||||||||||||||||
| Other income (expense), net | (237,162 | ) | (1,592 | ) | (213,754 | ) | ||||||||||||||||
| Loss from before provision for income taxes | (437,453 | ) | (44,960 | ) | (422,413 | ) | ||||||||||||||||
| PROVISION FOR INCOME TAXES | (1,609 | ) | - | (1,609 | ) | |||||||||||||||||
| NET LOSS | $ | (439,062 | ) | $ | (44,960 | ) | $ | (424,022 | ) | |||||||||||||
| NET LOSS PER SHARE | ||||||||||||||||||||||
| Basic | $ | (0.02 | ) | N/A | $ | (0.01 | ) | |||||||||||||||
| Diluted | $ | (0.02 | ) | N/A | $ | (0.01 | ) | |||||||||||||||
| SHARES USED IN CALCULATION OF NET LOSS PER SHARE | ||||||||||||||||||||||
| Basic | 27,297,960 | A | 4,292,220 | 31,590,180 | ||||||||||||||||||
| Diluted | 27,297,960 | A | 4,292,220 | 31,590,180 | ||||||||||||||||||
Adjustment Notes
| A | Represents the issuance of 4,292,220 shares for the acquisition of Rohuma on January 22, 2021 (value per share was $1.01 per share on Janaury 22, 2021) | |
| B | Represents estimated change in value of based on events occuring subsequent to September 30, 2020 |
TRAQIQ, INC. AND SUBSIDIARIES
PROFORMA STATEMENTS OF OPERATIONS
Year Ended December 31, 2019
| TRAQ | ROHUMA | ADJUSTMENTS | CONSOLIDATED | |||||||||||||||
| REVENUES | ||||||||||||||||||
| Revenue from services | $ | 680,732 | $ | 228,632 | $ | 909,364 | ||||||||||||
| 680,732 | 228,632 | 909,364 | ||||||||||||||||
| COST OF REVENUES | ||||||||||||||||||
| Cost of services | 431,363 | 88,776 | 520,139 | |||||||||||||||
| 431,363 | 88,776 | 520,139 | ||||||||||||||||
| GROSS PROFIT | 249,369 | 139,856 | 389,225 | |||||||||||||||
| OPERATING EXPENSES: | ||||||||||||||||||
| Salaries and salary related costs | 114,615 | 196,336 | 310,951 | |||||||||||||||
| Professional fees and consulting | 287,775 | 13,785 | 301,560 | |||||||||||||||
| General and administrative | 160,919 | 34,573 | 195,492 | |||||||||||||||
| Depreciation and amortization | 42,840 | 331 | 43,171 | |||||||||||||||
| Rent | 88,863 | 14,437 | B | 60,000 | 43,300 | |||||||||||||
| Total operating expenses | 695,012 | 259,462 | 894,474 | |||||||||||||||
| Loss from operations | (445,643 | ) | (119,606 | ) | (505,249 | ) | ||||||||||||
| OTHER INCOME (EXPENSE): | ||||||||||||||||||
| Bargain purchase gain | 417,148 | - | B | 417,148 | - | |||||||||||||
| Forgiveness of debt | 55,450 | - | 55,450 | |||||||||||||||
| Interest expense, net of interest income | (250,164 | ) | - | (250,164 | ) | |||||||||||||
| Other income (expense), net | 222,434 | - | (194,714 | ) | ||||||||||||||
| Loss from before provision for income taxes | (223,209 | ) | (119,606 | ) | (699,963 | ) | ||||||||||||
| PROVISION FOR INCOME TAXES | - | - | - | |||||||||||||||
| NET LOSS | $ | (223,209 | ) | $ | (119,606 | ) | $ | (699,963 | ) | |||||||||
| NET LOSS PER SHARE | ||||||||||||||||||
| Basic | $ | (0.01 | ) | N/A | $ | (0.02 | ) | |||||||||||
| Diluted | $ | (0.01 | ) | N/A | $ | (0.02 | ) | |||||||||||
| SHARES USED IN CALCULATION OF NET LOSS PER SHARE | ||||||||||||||||||
| Basic | 27,297,960 | A | 4,292,220 | 31,590,180 | ||||||||||||||
| Diluted | 27,297,960 | A | 4,292,220 | 31,590,180 | ||||||||||||||
Adjustment Notes
| A | Represents the issuance of 4,292,220 shares for the acquisition of Rohuma on January 22, 2021 (value per share was $1.01 per share on Janaury 22, 2021) | |
| B | Represents estimated change in value of based on events occuring subsequent to September 30, 2020 |