Titan Environmental Solutions Inc 8-K/A, filed May 3, 2021
Titan Environmental Solutions Inc. (TESI)
About this 8-K/A
Titan Environmental Solutions Inc filed this 8-K/A on May 3, 2021, reporting on events of January 22, 2021.
Items reported
- Item 2.01: Completed an acquisition or sale of assets
- Item 9.01: Financial statements and exhibits
UNITED STATES
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 (Date of Earliest Event Reported) January 22, 2021
TRAQIQ, INC.
(Exact Name of Registrant as Specified in its Charter)
California |
333-172658 | 30-0580318 | ||
(State or other jurisdiction of incorporation) |
(Commission File number) |
(IRS Employer Identification No.) |
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 | ||
| Common Stock, par value $0.0001 per share | TRIQ | OTCQB |
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 [ ]
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 2.01 Completion of Acquisition or Disposition of Assets
On January 22, 2021, TraQiQ, Inc. (the “Company”) entered into a Share Exchange Agreement and completed the acquisition of Rohuma, LLC, a Delaware limited liability company (“Rohuma”). The Company filed a Current Report on Form 8-K on January 26, 2021 reporting on the acquisition of Rohuma. On February 17, 2021, the Company entered into another Share Exchange Agreement and completed the acquisition of Mimo Technologies Private Ltd., an Indian corporation (“Mimo”). The Company filed a Current Report on Form 8-K on February 17, 2021 reporting on the acquisition of Mimo.
This Form 8-K/A amends the Form 8-K the Company filed on January 22, 2021 and the Form 8-K the Company filed on February 17, 2021 to include pro forma financial information under Item 9.01 with respect to the acquisition of Rohuma and Mimo.
Item 9.01 Financial Statements and Exhibits.
| (b) | Pro forma Financial Information. |
Pro Forma Unaudited Consolidated Financial Statements.
| (c) | Exhibits |
Exhibit Number |
Description | |
| 99.2 | Pro Forma Unaudited Consolidated Financial Statements. |
| 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: April 30, 2021 | /s/Ajay Sikka |
| Ajay Sikka | |
| Chief Executive Officer |
| 3 |
Exhibit 99.2
TRAQIQ, INC.
PRO FORMA UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
The following unaudited pro forma consolidated financial statements give effect to the acquisition of the outstanding membership interests of Rohuma, LLC, (“Rohuma”) on January 22, 2021 by TraQiQ, Inc. (“TraQ” and the “Company”) and the acquisition of the outstanding membership interests of Mimo Technologies Private Ltd. (“Mimo”) on February 17, 2021 by TraQ, and are based on estimates and assumptions set forth herein and in the notes to such pro forma statements.
In January 2021, TraQ, entered into a Share Exchange Agreement (the “Exchange Agreement”) with Rohuma, whereby as consideration for the transaction, Traq is to issue 4,292,220 shares of its common stock in exchange for the membership interests of Rohuma.
On February 17, 2021, the Company entered into a Share Exchange Agreement with Mimo Technologies Private Ltd., and Indian corporation (“Mimo”) and its shareholders, whereby the Mimo shareholders agreed to exchange all of their respective shares in Mimo in exchange for warrants to purchase 1,367,539 shares of the Company’s common stock.
The transactions are being accounted for as an acquisition of Rohuma and Mimo under ASC 805.
As a result of the transaction effected by the Exchange Agreements, at closing Rohuma and Mimo became subsidiaries of the Company.
The following unaudited pro forma consolidated statement of operations for the year ended December 31, 2020 of the Company, Rohuma and Mimo gives effect to the above as if the transactions had occurred at the beginning of the period. The unaudited pro forma consolidated balance sheet at December 31, 2020 assumes the effects of the above as if this transaction had occurred as of January 1, 2020.
TRAQIQ, INC.
PRO FORMA UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
The unaudited pro forma consolidated financial statements are based upon, and should be read in conjunctions with the Company’s audited financial statements as of and for the year ended December 31, 2020.
The unaudited pro forma consolidated financial statements and notes thereto contained forward-looking statements that involve risks and uncertainties. Therefore, our actual results may vary materially from those discussed herein. The unaudited pro forma consolidated financial statements do not purport to be indicative of the results that would have been reported had such events actually occurred on the dates specified, nor is it indicative our future results.
TRAQIQ, INC.
NOTES TO UNAUDITED PRO FORMA
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
NOTE A – ACCOUNTING TREATMENT APPLIED AS A RESULT OF THIS TRANSACTION
The acquisition of Rohuma and Mimo are being accounted for as a business combination, whereby TraQ is the acquierer.
NOTE B – ADJUSTMENT
| (a) | To record the acquisition of Rohuma. | |
| (b) | To record the issuance of shares of common stock in January 2021 for cash and conversion of certain note payable and accrued interest. | |
| (c) | To record the acquisition of Mimo. | |
| (d) | To adjust for the write-off of certain amounts outstanding between TraQ and Mimo. |
NOTE C – PRO FORMA WEIGHTED AVERAGES SHARES OUTSTANDING
Pro forma shares outstanding assuming the transaction occurred as of September 30, 2020:
| TraQ Weighted Average Shares Outstanding | 27,297,960 | |||
| Shares issued to acquire Rohuma | 4,292,220 | |||
| Shares issued for cash and conversion of notes payable | 834,338 | |||
| Pro forma shares outstanding | 32,424,518 |
TRAQIQ, INC. AND SUBSIDIARIES
PROFORMA CONSOLIDATED BALANCE SHEET
DECEMBER 31, 2020
| TRAQ | ROHUMA | MIMO | ADJUSTMENTS | CONSOLIDATED | ||||||||||||||||||||||||
| ASSETS | C | |||||||||||||||||||||||||||
| CURRENT ASSETS | ||||||||||||||||||||||||||||
| Cash | $ | 29,658 | $ | 6,027 | $ | 10,381 | $ | 456,000 | B | $ | 1,027,066 | |||||||||||||||||
| 525,000 | D | |||||||||||||||||||||||||||
| Accounts receivable, net of allowance | 521,618 | 4,179 | 344,776 | 870,573 | ||||||||||||||||||||||||
| Note receivable - related party | 227,877 | - | - | F | 227,877 | - | ||||||||||||||||||||||
| Prepaid expenses and other current assets | 322,286 | 8,943 | 34,127 | 365,356 | ||||||||||||||||||||||||
| Total current assets | 1,101,439 | 19,149 | 389,284 | 981,000 | 227,877 | 2,262,995 | ||||||||||||||||||||||
| Fixed assets, net | 36,373 | 4,512 | 157,133 | 198,018 | ||||||||||||||||||||||||
| Intangible assets, net | 444,584 | - | - | 444,584 | ||||||||||||||||||||||||
| Goodwill | 3,520,300 | A | 6,613,276 | |||||||||||||||||||||||||
| 3,092,976 | E | |||||||||||||||||||||||||||
| Restreicted cash | 28,746 | - | 2,738 | 31,484 | ||||||||||||||||||||||||
| Right-of-use asset | 126,118 | - | - | 126,118 | ||||||||||||||||||||||||
| Long-term investments | 40,603 | 1,440 | - | 42,043 | ||||||||||||||||||||||||
| Other assets | 3,196 | - | - | 3,196 | ||||||||||||||||||||||||
| Total non-current assets | 679,620 | 5,952 | 159,871 | 6,613,276 | - | 7,458,719 | ||||||||||||||||||||||
| TOTAL ASSETS | $ | 1,781,059 | $ | 25,101 | $ | 549,155 | $ | 7,594,276 | $ | 227,877 | $ | 9,721,714 | ||||||||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||||||||||||||||||||||
| CURRENT LIABILITIES | ||||||||||||||||||||||||||||
| Current portion of long-term debt | $ | 133,761 | $ | 10,000 | $ | - | $143,761 | |||||||||||||||||||||
| Current portion of long-term debt - related parties | 1,843,399 | 37,776 | 774,780 | 25,000 | B | 2,403,078 | ||||||||||||||||||||||
| 227,877 | F | |||||||||||||||||||||||||||
| Current portion of convertible debt - long-term debt | 241,334 | - | - | 156,687 | B | 609,647 | ||||||||||||||||||||||
| D | 525,000 | |||||||||||||||||||||||||||
| Cash overdraft | 188,721 | 2,980 | - | 191,701 | ||||||||||||||||||||||||
| Accounts payable and accrued expenses | 1,163,505 | 58,181 | 923,398 | 43,000 | B | 2,102,084 | ||||||||||||||||||||||
| Current portion of lease liabilities | 8,779 | - | - | 8,779 | ||||||||||||||||||||||||
| Accrued payroll | 327,084 | - | 109,850 | 436,934 | ||||||||||||||||||||||||
| Accrued taxes and duties payable | 46,577 | 2,688 | - | 49,265 | ||||||||||||||||||||||||
| Total current liabilities | 3,953,160 | 111,625 | 1,808,028 | 452,564 | 525,000 | 5,945,249 | ||||||||||||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||||||||||||||||
| Long-term debt - related parties, net of current portion | - | - | 156,538 | 156,538 | ||||||||||||||||||||||||
| Lease liabilities - net of current portion | 125,219 | - | - | 125,219 | ||||||||||||||||||||||||
| Long-term debt, net of current portion | 59,856 | - | - | 59,856 | ||||||||||||||||||||||||
| Total non-current liabilities | 185,075 | - | 156,538 | - | - | 341,613 | ||||||||||||||||||||||
| COMMITMENTS AND CONTINGENCIES | - | - | - | - | - | - | ||||||||||||||||||||||
| Total liabilities | 4,138,235 | 111,625 | 1,964,566 | 452,564 | 525,000 | 6,286,862 | ||||||||||||||||||||||
| STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||||||||||||||||||||||
| Preferred Stock | 5 | - | - | 5 | ||||||||||||||||||||||||
| Common Stock | 2,730 | - | 2,274 | A | 429 | 3,242 | ||||||||||||||||||||||
| B | 83 | |||||||||||||||||||||||||||
| 2,274 | E | |||||||||||||||||||||||||||
| Additional paid-in-capital | 117,261 | 297,612 | 22,312 | B | 680,604 | 5,871,659 | ||||||||||||||||||||||
| 297,612 | A | |||||||||||||||||||||||||||
| A | 3,433,347 | |||||||||||||||||||||||||||
| E | 1,640,447 | |||||||||||||||||||||||||||
| 22,312 | E | |||||||||||||||||||||||||||
| Accumulated other comprehenive income (loss) | 27,721 | - | 37,118 | 64,839 | ||||||||||||||||||||||||
| Accumulated deficit | (2,504,893 | ) | (384,136 | ) | (1,477,115 | ) | A | 384,136 | (2,504,893 | ) | ||||||||||||||||||
| E | 1,477,115 | |||||||||||||||||||||||||||
| Total stockholders’ equity (deficit) | (2,357,176 | ) | (86,524 | ) | (1,415,411 | ) | 322,198 | 7,616,161 | 3,434,852 | |||||||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | $ | 1,781,059 | $ | 25,101 | $ | 549,155 | $ | 774,762 | $ | 8,141,161 | $ | 9,721,714 | ||||||||||||||||
| Adjustment Notes | |
| A | Represents the issuance of 4,292,220 shares for the acquisition of Rohuma on January 22, 2021 (value was $0.80 per share) |
| B | Represents shares of stock issued for cash ($456,000) as well as for conversion of notes payable and accrued interest ($224,687) prior to acquisition of Mimo |
| C | Represents balances of Rohuma as of January 22, 2021, the date of acquisition. There were no material differences in the assets and liabilities from January 1 through January 21. |
| D | Represents proceeds received from new convertible notes in January 2021 |
| E | Represents value of the acquisition of Mimo |
| F | Write-off of note between TRAQ and MIMO |
TRAQIQ, INC. AND SUBSIDIARIES
PROFORMA STATEMENTS OF OPERATIONS
Year Ended December 31, 2020
| TRAQ | ROHUMA | MIMO | ADJUSTMENTS | CONSOLIDATED | ||||||||||||||||||
| REVENUES | ||||||||||||||||||||||
| Revenue from services | $ | 1,009,949 | $ | 255,661 | $ | 142,309 | $1,407,919 | |||||||||||||||
| 1,009,949 | 255,661 | 142,309 | 1,407,919 | |||||||||||||||||||
| COST OF REVENUES | ||||||||||||||||||||||
| Cost of services | 546,569 | 115,436 | 462,110 | 1,124,115 | ||||||||||||||||||
| 546,569 | 115,436 | 462,110 | 1,124,115 | |||||||||||||||||||
| GROSS PROFIT | 463,380 | 140,225 | (319,801 | ) | 283,804 | |||||||||||||||||
| OPERATING EXPENSES: | ||||||||||||||||||||||
| Salaries and salary related costs | 284,258 | 107,191 | - | 391,449 | ||||||||||||||||||
| Professional fees and consulting | 201,430 | 30,449 | 4,449 | 236,328 | ||||||||||||||||||
| General and administrative | 101,845 | 24,718 | 314,466 | 441,029 | ||||||||||||||||||
| Depreciation and amortization | 47,988 | 3,663 | 32,895 | 84,546 | ||||||||||||||||||
| Rent | 182,827 | 5,115 | - | B | 100,000 | 87,942 | ||||||||||||||||
| Total operating expenses | 818,348 | 171,136 | 351,810 | 1,241,294 | ||||||||||||||||||
| Gain (Loss) from operations | (354,968 | ) | (30,911 | ) | (671,611 | ) | (957,490) | |||||||||||||||
| OTHER EXPENSE: | ||||||||||||||||||||||
| Other income (loss) | 76,248 | - | - | 25,000 | B | 51,248 | ||||||||||||||||
| Interest expense, net of interest income | (328,380 | ) | (2,242 | ) | (15,872 | ) | (346,494) | |||||||||||||||
| Other income (expense), net | (252,132 | ) | (2,242 | ) | (15,872 | ) | (295,246) | |||||||||||||||
| Loss from before provision for income taxes | (607,100 | ) | (33,153 | ) | (687,483 | ) | (1,252,736) | |||||||||||||||
| `` | ||||||||||||||||||||||
| PROVISION FOR INCOME TAXES | 809 | - | (68,369 | ) | (67,560) | |||||||||||||||||
| NET LOSS | $ | (607,909 | ) | $ | (33,153 | ) | $ | (619,114 | ) | $ | (1,185,176) | |||||||||||
| NET LOSS PER SHARE | ||||||||||||||||||||||
| Basic | $ | (0.02 | ) | N/A | N/A | $(0.04) | ||||||||||||||||
| Diluted | $ | (0.02 | ) | N/A | N/A | $(0.04) | ||||||||||||||||
| SHARES USED IN CALCULATION OF NET LOSS PER SHARE | ||||||||||||||||||||||
| Basic | 27,297,960 | A | 5,126,558 | 32,424,518 | ||||||||||||||||||
| Diluted | 27,297,960 | A | 5,126,558 | 32,424,518 | ||||||||||||||||||
| Adjustment Notes | |
| A | Represents the issuance of 4,292,220 shares for the acquisition of Rohuma on January 22, 2021 as well as for conversion of debt and cash |
| B | Represents estimated change in value based on changes to agreements |