SECURITIES AND EXCHANGE COMMISSIONWashington, DC 20549

**FORM 10-QSB**

(Mark One)

[x] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended – June 30, 2004

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE EXCHANGE ACTFor the transition period from                                                            to                                                         

***TRANS MAX TECHNOLOGIES, INC..*******(Exact name of registrant as it appears in its charter)

000-31631Commission File Number)

| NEVADA (State or jurisdiction of Incorporation or organization) | 42-1599830 I.R.S. Employer Identification No.) |
|-----------------------------------------------------------------|------------------------------------------------|

7473 West Lake Mead BoulevardLas Vegas, Nevada  89128(Address of Principal Executive Office)

(702) 382-3377Registrant's telephone number, including area code

Securities registered pursuant to Section 12 (b) of the Act:  None

Securities registered pursuant to Section 12 (b) of the Act:  Class A Common Stock$0.001 Par Value

Indicate by check mark whether the registrant (1) has filed all reports to be filed bySection 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that theregistrant was required to file such reports) and  (2) has been subject to such filing requirements for the past 90days.  Yes X No

At the end of the quarter ending June 30, 2004 there were 221,212,474 issued andoutstanding shares of the registrant’s common stock.

 

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PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

**TRANS MAX TECHNOLOGIES, INC.CONDENSED CONSOLIDATED FINANCIALSFOR PERIOD ENDING JUNE 30, 2004 (UNAUDITED)**

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**TRANS MAX TECHNOLOGIES, INC.CONDENSED CONSOLIDATED BALANCE SHEETJUNE 30, 2004 (UNAUDITED)**

| **ASSETS**                                                                                                                                            |                                                                   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------|
|                                                                                                                                                       |                                                                   |
| Current Assets:                                                                                                                                       |                                                                   |
|   Cash and cash equivalents                                                                                                                 | $      29,956                       |
|     Accounts receivable                                                                                                           |           8,792 |
|                                                                                                                                                       |                                                                   |
|      Total Current Assets                                                                                                    |        38,748                  |
|                                                                                                                                                       |                                                                   |
|   Receivable from affiliates                                                                                                                | 314,339                                                           |
|   Property and equipment, net                                                                                                               |       10,701                        |
|                                                                                                                                                       |                                                                   |
| **TOTAL ASSETS**                                                                                                                                      | $     363,788 =========                  |
|                                                                                                                                                       |                                                                   |
| **LIABILITIES AND STOCKHOLDERS' EQUITY(DEFICIT)**                                                                                                     |                                                                   |
|                                                                                                                                                       |                                                                   |
|                                                                                                                                                       |                                                                   |
| **LIABILITIES**                                                                                                                                       |                                                                   |
| Current Liabilities                                                                                                                                   |                                                                   |
|   Accounts payable and accrued expenses                                                                                                     | $     103,434                            |
|     Note payable to stockholders                                                                                                  |        975,189                 |
|                                                                                                                                                       |                                                                   |
|              Total Current Liabilities                                               |     1,078,623                                 |
|                                                                                                                                                       |                                                                   |
| **        TotalLiabilities**                                                                                  |     1,078,623                                 |
|                                                                                                                                                       |                                                                   |
| **STOCKHOLDERS' EQUITY (DEFICIT)**                                                                                                                    |                                                                   |
|                                                                                                                                                       |                                                                   |
|   Common stock, $.001 Par Value; 500,000,000 shares authorized221,212,474 shares       issued and outstanding | 221,212                                                           |
|   Additional paid-in capital                                                                                                                | 1,689,097                                                         |
|   Accumulated deficits                                                                                                                      |  (2,625,144)                                                 |
|                                                                                                                                                       |                                                                   |
| **      Total Stockholders' Equity(Deficit)**                                                                                |     (714,835)                                 |
|                                                                                                                                                       |                                                                   |
| **TOTAL LIABILITY AND STOCKHOLDERS' EQUITY (DEFICIT)**                                                                                                | $     363,788 =========                  |

The accompanying notes are an integral part of the condensed consolidated financialstatements.

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**TRANS MAX TECHNOLOGIES, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFOR THE SIX AND THREE MONTHS ENDED JUNE 30, 2004 AND 2003**

|                                                                                           | **SIX MONTHS ENDED**                                                                                                  |  | **THREE MONTHS ENDED**                                                                                               |
|-------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|--|----------------------------------------------------------------------------------------------------------------------|
|                                                                                           | **JUNE30,           **                                         |  | **JUNE 30,         **                                                   |
|                                                                                           | **2004**                                                                                                              |  | **2003**                                                                                                             |  | **2004** |  | **2003** |
|                                                                                           |                                                                                                                       |  |                                                                                                                      |  |  |  |  |
| **OPERATING REVENUES**                                                                    |                                                                                                                       |  |                                                                                                                      |  |  |  |  |
|   Sales                                                                         |   $        112,288                                                                 |  |   $     158,090                                                                                  |  |   $       51,940 |  |   $       89,554 |
|                                                                                           |                                                                                                                       |  |                                                                                                                      |  |  |  |  |
| **COST OF SALES**                                                                         |                61,423                           |  |            57,909                                                  |  |            28,411 |  |            33,879 |
|                                                                                           |                                                                                                                       |  |                                                                                                                      |  |  |  |  |
| **GROSS PROFIT (LOSS)**                                                                   |                50,865                           |  |         100,181                                                              |  |            23,529 |  |            55,675 |
|                                                                                           |                                                                                                                       |  |                                                                                                                      |  |  |  |  |
| **OPERATING EXPENSES**                                                                    |                                                                                                                       |  |                                                                                                                      |  |  |  |  |
|    Research and development                                                |                 57,612                     |  |                    -  |  |                    - |  |                    - |
|    General and administrative expenses                                     |           1,114,391                                                 |  |           88,765                                                   |  |         583,903 |  |           49,752 |
|    Depreciation and amortization                                           |                    673 |  |              1,500                                       |  |                    - |  |                 750 |
| **          TotalOperating Expenses**   |           1,172,676                                                 |  |            90,265                                                  |  |         583,903 |  |            50,502 |
|                                                                                           |                                                                                                                       |  |                                                                                                                      |  |  |  |  |
| **NET INCOME (LOSS) BEFORE OTHER (EXPENSES)**                                             |         (1,121,811)                                                           |  |              9,916                                       |  |        (560,374) |  |              5,173 |
| **OTHER (EXPENSES)**                                                                      |                                                                                                                       |  |                                                                                                                      |  |  |  |  |
|    Impairment                                                              |             (822,046)                                          |  |                   -   |  |        (822,046) |  |                  -   |
|    Interest expense                                                        |            (18,940)                                                 |  |            (3,559)                                                 |  |            (9,123) |  |            (2,408) |
| **           TotalOther Expenses** |           (840,986)                                                 |  |            (3,559)                                                 |  |       (831,169) |  |            (2,408) |
|                                                                                           |                                                                                                                       |  |                                                                                                                      |  |  |  |  |
| **NET INCOME (LOSS) PER COMMON SHARE OUTSTANDING**                                        | $      (1,962,797) ===========                                                               |  |   $         6,357 =========                                             |  |  $ (1,391,543) ========= |  | $          2,765 ========== |
|                                                                                           |                                                                                                                       |  |                                                                                                                      |  |  |  |  |
| **WEIGHTED AVERAGE NUMBER OF COMMON**                                                     |                                                                                                                       |  |                                                                                                                      |  |  |  |  |
| **NET INCOME (LOSS) PER COMMON SHARE SHARES OUTSTANDING**                                 |        221,212,474 ===========                                                          |  |       2,322,700 =========                                                                   |  |   221,212,474 ========= |  |       2,322,700 ========== |
|                                                                                           |                                                                                                                       |  |                                                                                                                      |  |  |  |  |
| **NET INCOME (LOSS) PER COMMON SHARE**                                                    |  $        (0.0089) ==========                                                 |  |   $      0.0027 ========                                                          |  |   $      (0.0063) ========== |  |   $       0.0012 ========== |

The accompanying notes are an integral part of the condensed consolidated financialstatements.

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**TRANS MAX TECHNOLOGIES, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE SIX MONTHS ENDED JUNE 30, 2004 AND 2003**

|                                                                                 |                                                         | **2004**                                                                                                       |                                                                                                                           | **2003**                                                                                                                  |  |
|---------------------------------------------------------------------------------|---------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|--|
| **CASH FLOWS FROM OPERATING ACTIVITIES**                                        |                                                         |                                                                                                                |                                                                                                                           |
|    Net income (loss)                                                  |                                                         |   $(1,962,797)                                                                                            |                                                                                                                           |  $          6,357                                                       |  |
|    Adjustments to reconcile net income (loss) to netcash              |                                                         |                                                                                                                |                                                                                                                           |
|      provided by (used in) operatingactivities              |                                                         |                                                                                                                |                                                                                                                           |                                                                                                                           |  |
|    Depreciation                                                       |                                                         |               673                             |                                                                                                                           |              1,500                                            |  |
|    Imputed interest expense                                           |                                                         |           7,056                                              |                                                                                                                           |                     - |  |
|   Common stock issued for services                                         |                                                         |         70,339                                                         |                                                                                                                           |                     - |  |
|    Impairment of property and equipment                               |                                                         |        822,046                                                                   |                                                                                                                           |                     - |  |
| **  Changes in assets and liabilities**                                    |                                                         |                                                                                                                |                                                                                                                           |                                                                                                                           |  |
|      (Increase) decrease in accountsreceivable              |         18,192  |                                                                                                                |             (2,823)                                                |                                                                                                                           |
|      Decrease in other assets                               |                                                         |        228,071                                                                   |                                                                                                                           |                 293                            |  |
|      Increase in accounts payable                           |                                                         |         52,621                                                         |                                                                                                                           |              1,257                                            |  |
|      Total adjustments                                      |                                                         |     1,198,998                                                                                   |                                                                                                                           |                 227                            |  |
| **     Net cash provided by (used in) operatingactivities** |       (763,799)                |                                                                                                                |              6,584                                            |                                                                                                                           |
| **CASH FLOWS FROM INVESTING ACTIVITIES**                                        |                                                         |                                                                                                                |                                                                                                                           |
|    Purchase of property and equipment                                 |                                                         |       (398,707)                                                                       |                                                                                                                           |                     - |  |
|    (Decrease) in receivable from affiliates, net                      |                                                         |       (284,445)                                                                       |                                                                                                                           |                     - |  |
| **      Net cash (used in) investingactivities**       |                                                         |       (683,152)                                                                       |                                                                                                                           |                     - |  |
| **CASH FLOWS FROM FINANCING ACTIVITIES**                                        |                                                         |                                                                                                                |                                                                                                                           |
|    Proceeds from notes payable to stockholders                        |        861,789            |                                                                                                                |                     - |                                                                                                                           |
|    Net proceeds from line of credit                                   |                                                         |                    - |                                                                                                                           |                   24                 |  |
|    Cash contributed by stockholders                                   |                                                         |        605,859                                                                   |                                                                                                                           |                     - |  |
| **      Net cash provided by financingactivities**     |                                                         |     1,467,648                                                                                   |                                                                                                                           |                   24                 |  |
|                                                                                 |                                                         |                                                                                                                |                                                                                                                           |                                                                                                                           |  |
| **NET INCREASE IN CASH AND CASH EQUIVALENTS**                                   |                                                         |         20,697                                                         |                                                                                                                           |              6,608                                            |  |
|                                                                                 |                                                         |                                                                                                                |                                                                                                                           |                                                                                                                           |  |
| **CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD**                             |                                                         |            9,259                                             |                                                                                                                           |                     - |  |
|                                                                                 |                                                         |                                                                                                                |                                                                                                                           |                                                                                                                           |  |
| **CASH AND CASH EQUIVALENTS - END OF PERIOD**                                   |   $      29,956 ========= |                                                                                                                |   $         6,608 ==========                                            |                                                                                                                           |
| **SUPPLEMENTAL CASH FLOW INFORMATION**                                          |                                                         |                                                                                                                |                                                                                                                           |                                                                                                                           |
|                                                                                 |                                                         |                                                                                                                |                                                                                                                           |                                                                                                                           |  |
|   Cash paid during the year for interest                                   |                                                         |   $      18,940 =========                                                        |                                                                                                                           |   $         3,559 =========                                             |  |
| **SUPPLEMENTAL DISCLOSURE OF NONCASH INFORMATION**                              |                                                         |                                                                                                                |
|                                                                                 |                                                         |                                                                                                                |                                                                                                                           |                                                                                                                           |  |
|    Common stock issued for services                                   |                                                         |   $      70,339 =========                                                        |                                                                                                                           |  $                -   ========= |  |

The accompanying notes are an integral part of the condensed consolidated financialstatements.

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**TRANS MAX TECHNOLOGIES, INC.SELECTED NOTES TO UNAUDITED CONDENSEDCONSOLIDATED FINANCIAL STATEMENTS**

1.             INTERIMFINANCIAL STATEMENTS

The accompanying unaudited interim condensed consolidated financial statements have beenprepared without audit pursuant to the rules and regulations of the U.S. Securities and Exchange Commission.  Certaininformation and footnote disclosures normally included in financial statements prepared in accordance with accounting principlesgenerally accepted in the United States of America have been condensed or omitted, pursuant to such rules and regulations. These unaudited financial statements should be read in conjunction with the audited financial statements and notes thereto of theCompany included in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2003.  In the opinion ofManagement, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of financialposition, results of operations and cash flows for the interim periods presented have been included. Operating results for theinterim periods are not necessarily indicative of the results that may be expected for the respective full year.

The accompanying condensed consolidated financial statements have been prepared assumingthat the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilitiesin the normal course of business. The Company faces many operating and industry challenges.  The Company intends to dobusiness in a highly competitive industry.  Future operating losses for the Company are anticipated and the proposed plan ofoperations, even if successful, may not result in cash flow sufficient to finance the continued expansion of its business. These factors raise substantial doubt about the Company's ability to continue as a going concern.  Realization of assets isdependent upon continued operations of the Company, which in turn is dependent upon management's plans to meet its financingrequirements, as discussed below, and the success of its future operations.  The condensed consolidated financial statementsdo not include any adjustments that might result from this uncertainty.

2.             ORGANIZATIONAND SIGNIFICANT ACCOUNTING POLICIES

Perma-Tune Electronics, Inc.  ("Perma-Tune") was incorporated in 1993 in the state ofTexas.  The Company designs and manufactures high performance electronic ignition systems for distribution throughout theUnited States, Canada and Europe.  On July 21, 2003 Perma-Tune acquired 100% of the issued and outstanding stock of Trans MaxTechnologies, Inc. ("Trans Max"), a Nevada corporation, in exchange for 15,177,300 shares of Perma-Tune's common stock (pre 2 for 1and 6 for 1 stock splits).  As a result of this acquisition, the control of Perma-Tune shifted to the former shareholders ofTrans Max and this transaction was treated as a recapitalization.  As a part of this recapitalization, Perma-Tune Electronics,Inc. changed its name to Trans Max Technologies, Inc. (the "Company").

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**TRANS MAX TECHNOLOGIES, INC.SELECTED NOTES TO UNAUDITED CONDENSEDCONSOLIDATED FINANCIAL STATEMENTS, CONTINUED**

2.             ORGANIZATIONAND SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

MANAGEMENT ESTIMATES

The preparation of condensed consolidated financial statements in conformity withaccounting principles generally accepted in the United States of America requires management to make estimates and assumptions thataffect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenueand expenses during the reporting period.  Actual results could differ from those estimates.

REVENUE RECOGNITION

The Company recognizes revenue when persuasive evidence of an arrangement exists, deliveryhas occurred, the sales price is fixed or determinable and collectibility is probable.  Generally, these criteria are met atthe time product is shipped.  The Company provides for the estimated cost of product warranties upon shipment.  TheCompany has a no return policy and has had no returns in the last two years. Shipping and handling costs are included in cost ofgoods sold.

RESEARCH AND DEVELOPMENT

Research and development activities are expensed as incurred, including costs relating topatents or rights which may result from such expenditures.

CONCENTRATIONS OF CREDIT RISK

Financial instruments which subject the Company to concentrations of credit risk includecash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with major financialinstitutions selected based upon management's assessment of the banks' financial stability.  Balances periodically exceed the$100,000 federal depository insurance limit. The Company has not experienced any losses on deposits.  Accounts receivablegenerally arise from sales of services to customers operating in the United States.  Collateral is generally not required forcredit granted.  As of  June 30, 2004, approximately 35% of the Company's trade receivables were due from onecustomer.  The Company provides allowances for potential credit losses when necessary.

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**TRANS MAX TECHNOLOGIES, INC.SELECTED NOTES TO UNAUDITED CONDENSEDCONSOLIDATED FINANCIAL STATEMENTS, CONTINUED**

2.             ORGANIZATIONAND SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

PROPERTY AND EQUIPMENT

Property and equipment is stated at cost.  Depreciation is computed using thestraight-line method over the estimated useful lives of three to seven years for office furniture and equipment.  Leaseholdimprovements are depreciated over the shorter of the useful life of the improvement or the life of the related lease. Additions orimprovements that increase the value or extend the life of an asset are capitalized. Expenditures for normal maintenance andrepairs are expensed as incurred.  Disposals are removed from the accounts at cost less accumulated depreciation and any gainor loss from disposition is reflected in operations currently.

INVENTORIES

Inventories are stated at the lower of cost or market, with cost determined on a first-in,first-out basis.

INCOME TAXES

The Company uses the liability method in accounting for income taxes. Under this method,deferred tax assets and liabilities are determined based on differences between financial reporting and income tax carrying amountsof assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences areexpected to reverse.  A valuation allowance, if necessary, is provided against deferred tax assets, based upon management'sassessment as to their realization.

The difference between the 34% federal statutory income tax rate and amounts shown in theaccompanying interim financial statements is primarily attributable to an increase in the valuation allowance applied against the tax benefit from utilization of net operating loss carryforwards.

STOCK-BASED COMPENSATION

Financial Accounting Standard No. 123, "Accounting for Stock-Based Compensation" ("SFASNo. 123") established financial accounting and reporting standards for stock-based employee compensation plans.  It defined afair value based method of accounting for an employee stock option or similar equity instrument and encouraged all entities toadopt that method of accounting for all of their employee stock compensation plans and include the cost in the income statement ascompensation expense.  However, it also allows an entity to continue to measure compensation cost for those plans using theintrinsic value based method of accounting prescribed by Accounting Principles Board ("APB") Opinion No. 25,"Accounting for StockIssued to Employees".  The Company accounts for compensation cost for stock option plans in accordance with APB Opinion No.25.

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**TRANS MAX TECHNOLOGIES, INC.SELECTED NOTES TO UNAUDITED CONDENSEDCONSOLIDATED FINANCIAL STATEMENTS, CONTINUED**

2.             ORGANIZATIONAND SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

IMPAIRMENT OF LONG-LIVED ASSETS

In the event facts and circumstances indicate the carrying value of a long-lived asset,including associated intangibles, may be impaired, an evaluation of recoverability is performed by comparing the estimated futureundiscounted cash flows associated with the asset to the asset's carrying amount to determine if a write-down to market value ordiscounted cash flow is required.  Based upon management's evaluation, an impairment write-down of some of the Company'sassets was deemed necessary ($26,393).

FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company includes fair value information in the notes to financial statements when thefair value of its financial instruments is different from the book value.  When the book value approximates fair value, noadditional disclosure is made.

LOSS PER SHARE

Basic and diluted loss per share is computed on the basis of the weighted average numberof shares of common stock outstanding during each period.  Common equivalent shares from common stock options and warrants areexcluded from the computation as their effect would dilute the loss per share for all periods presented.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated with Exit orDisposal Activities," which addresses financial accounting and reporting for costs associated with exit or disposal activities andsupersedes Emerging Issues Task Force ("EITF") Issue No. 94-3, "Liability Recognition for Certain Employee Termination Benefits andOther Costs to Exit an Activity (including Certain Costs Incurred in a Restructuring)." SFAS No. 146 requires companies torecognize costs associated with exit or disposal activities when they are incurred rather than at the date of a commitment to anexit or disposal plan. In addition, SFAS No. 146 establishes that fair value is the objective for initial measurement of theliability.  SFAS No. 146 is effective for exit or disposal activities initiated after December 31, 2002, but early adoption ispermitted.  The adoption of SFAS No. 146 did not have an impact on the Company's financial position or results ofoperations.

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**TRANS MAX TECHNOLOGIES, INC.SELECTED NOTES TO UNAUDITED CONDENSEDCONSOLIDATED FINANCIAL STATEMENTS, CONTINUED**

2.             ORGANIZATIONAND SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS, CONTINUED

In December 2002, the FASB issued SFAS No.148, "Accounting for Stock Based Compensation",which amends SFAS No.123 to provide alternative methods of transition for an entity that voluntarily changes to the fair valuemethod of accounting for stock based employee compensation.  It also amends the disclosure provisions of SFAS No. 123 torequire prominent disclosure about the effects on reported net income of an entity's accounting policy decisions with respect tostock based employee compensation.  Finally, SFAS No. 148 amends APB Opinion No.28, "Interim Financial Reporting", to requiredisclosure of those effects in interim financial statements.  SFAS No. 148 is effective for fiscal years ended after December15, 2002, but early adoption is permitted.  The Company adopted SFAS No.148 on January 1, 2003.  The adoption of SFAS No.148 did not have a significant impact on its financial reporting.

In January 2003, the FASB issued FASB Interpretation (FIN) No. 46 "Consolidation ofVariable Interest Entities." FIN No. 46 requires a company to consolidate a variable interest entity ("VIE") if the company hasvariable interests that give it a majority of the expected losses or a majority of the expected residual returns of the entity.Prior to FIN No. 46, VIE's were commonly referred to as SPE's.  FIN No. 46 is effective immediately for VIE's created afterJanuary 31, 2003.  This interpretation did not have a material effect on the Company's financial condition or results ofoperations.

In April 2003, the FASB issued SFAS No. 149, Amendment to Statement No. 133 on DerivativeInstruments and Hedging Activities.  This statement amends and clarifies financial accounting and reporting for derivativeinstruments, including certain derivative instruments embedded in other contracts (collectively referred to as derivatives) and forhedging activities under SFAS No.  133.  The changes in SFAS No. 149 improve financial reporting by requiring thatcontracts with comparable characteristics be accounted for similarly. Those changes will result in more consistent reporting ofcontracts as either derivatives or hybrid instruments.  SFAS No.149 is effective for contracts entered into or modified afterJune 30, 2003, except in certain instances detailed in the statement, and hedging relationships designated after June 30,2003.  Except as otherwise stated in SFAS No. 149, all provisions should be applied prospectively.  The adoption of thisstatement did not have a material effect on the Company's financial condition or results of operations.

In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain Financial Instrumentswith Characteristics of both Liabilities and Equity." SFAS No. 150, which is effective at the beginning of the first interim periodbeginning after June 15, 2003, must be implemented by reporting the cumulative effect of a change in accounting principle forfinancial instruments created before the issuance date of the statement and still existing at the beginning of the interim periodof adoption. The statement requires that a financial instrument which falls within the scope of the statement to be classified andmeasured as a liability.  The following financial instruments are required to be classified as liabilities:  (1) sharesthat are mandatorily redeemable, (2) an obligation to repurchase the issuer's equity shares or one indexed to such an obligationand that requires or may require settlement by transferring assets and (3) the embodiment of an unconditional obligation that theissuer may or may not settle by issuing a variable number of equity shares if, at inception, the monetary value of the obligationis based on certain measurements defined in the statement.  The adoption of this statement did not have a material effect onthe Company's financial condition or results of operations.

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**TRANS MAX TECHNOLOGIES, INC.SELECTED NOTES TO UNAUDITED CONDENSEDCONSOLIDATED FINANCIAL STATEMENTS, CONTINUED**

3.            LIQUIDITY

For the six months ended June 30, 2004, the Company had a net loss of $(1,962,797) and netincome of $ 6,357 for the same period in 2003. For the six months ended June 30, 2004 the Company had negative cash flows fromoperations of $763,799 ( and positive cash flows from operations of $ 6,584 for the same period in 2003).  In addition to therevenues provided by the normal operations of the electronic ignition product line, the Company has been dependent on additionalcapital contributions from shareholders and debt financing to fund its cash requirements.

As of  June 30, 2004 the Company's cash reserves totaled $29,656.  The Companyhas temporarily discontinued production and sales efforts as well as further research and development.  During the nextquarter the Company expects to decide on the future of production and research and development. .  This decision couldsignificantly  impact demand for the Company's products.

To assist with funding its operations, the Company's majority stockholders contributedadditional paid-in capital of $236,688 and additional loans of $ 197,289 during the six months ended June 30, 2004.  During2004 and beyond the Company will require additional capital.  Although the current majority stockholders of the Company havemade a verbal commitment, with no guarantee, to continue to fund the research and development and sales and marketing efforts ofthe Company in 2004 if alternate financing cannot be obtained, there can be no assurance that any new capital would be available tothe Company or that adequate funds for the Company's operations, whether from the Company's revenues, financial markets, or otherarrangements will be available when needed or on terms satisfactory to the Company. The failure of the Company to obtain adequateadditional financing may require the Company to delay, curtail or scale back some or all of its research and development programs,sales and marketing efforts, and manufacturing operations.

4.             PROPERTY ANDEQUIPMENT

Property and equipment, at June 30, 2004, consists of the following:

    Machinery andequipment                            $    72,813    Less accumulateddepreciation                         (62,112)    Property and equipment,net                              $10,701

Depreciation expense was $673 and $1,500 for the six months ended June 30, 2004 and 2003,respectively.  Leasehold improvements of $ 822,046 were written off as the building in Ronkonkoma, New York wasabandoned.

 

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**TRANS MAX TECHNOLOGIES, INC.SELECTED NOTES TO UNAUDITED CONDENSEDCONSOLIDATED FINANCIAL STATEMENTS, CONTINUED**

5.             NOTES PAYABLETO STOCKHOLDERS

Notes payable to stockholders at June 30, 2004 consisted of the following:

Note payable to a stockholder bearing interest at 10% per year with interest payments duequarterly and the principal due on demand.  This note is collateralized by inventory.  $ 40,000

Note payable to two stockholders and current employees of the Company bearing interest at10% per year with all interest and principal due June 28, 2004 with the option to renew the note for 30 day periods.  The noteis not collateralized.  $23,400.

Note payable to a stockholder and former officer/director of the Company.  There isno formal note agreement; however, the note bears interest at the prime rate and is due on demand. The note is notcollateralized.  $ 271,519

Note payable to a stockholder and former officer/director of the Company.  There isno formal note agreement.  The note bears no interest; however, interest is imputed at the prime rate and the outstandingprincipal balance is due on demand.  The note is not collateralized.   $ 640,270

Total notes payable tostockholders                                $  975,189                                                                                               ========

6.            STOCKHOLDERS' EQUITY

In connection with the Company's recapitalization (See Note 2), the Company adopted newarticles of incorporation that authorized the Company to issue 500,000,000 shares of common stock with a par value of $0.001 pershare.  Since the Company's common stock did not previously have a stated par value, common stock for all periods presentedhas been restated to reflect the par value of $0.001 per share.

The Company's articles of incorporation also authorize the issuance of up to 10,000,000shares of preferred stock with characteristics determined by the Company's board of directors.  As of  June 30, 2004 theCompany has not issued any preferred stock.

Effective March 12, 2004 the Company's board of directors approved a six for one forwardsplit of the Company's stock.  As a result, 184,263,395 shares were issued to the stockholders of the Company.  Par valueof the stock remained at $0.001 per share and, accordingly, $184,263 was transferred from additional paid-in capital to commonstock.  The effect of this stock split was recorded retroactively in the December 31, 2003 audited financial statements and,accordingly, all references to the number of common shares and per common share amounts have been restated to give retroactiveeffect to the stock split for all periods presented in these interim financial statements.

 

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**TRANS MAX TECHNOLOGIES, INC.SELECTED NOTES TO UNAUDITED CONDENSEDCONSOLIDATED FINANCIAL STATEMENTS, CONTINUED**

6.            STOCKHOLDERS' EQUITY, CONTINUED

On May 12, 2004 the Company issued 100,000 restricted shares to a consulting firm for theintroduction of business opportunities.  The cost associated with this issuance has been charged to consulting expense in thesecond quarter.

On May 25, 2004 Eastern Business Associates, Inc., Balboa Group, Inc. and FinancialInvestors, Inc. each acquired 43,002,350 shares of the Company’s stock or 19.4% of the outstanding shares resulting in achange in control of the Company.  All three companies have the same Managing Director. (see related 8K filing)

STOCK OPTIONS

The Company periodically issues incentive stock options to key employees, officers anddirectors to provide additional incentives to promote the success of the Company's business and to enhance the ability to attractand retain the services of qualified persons.  The issuances of such options are approved by the Board of Directors.  Theexercise price of an option granted is determined by the fair market value of the stock on the date of grant.

The Company has elected to followAccounting Principles Board Opinion No. 25, "Accounting for Stock Issued toEmployees" (APB 25) and related Interpretations in accounting for its employeestock options because, as discussed below, the alternative fair value accountingprovided for under FASB Statement No. 123, "Accounting for Stock-BasedCompensation", requires use of option valuation models that were not developedfor use in valuing employee stock options.  Under APB 25, because theexercise price of the Company's employee stock options is greater than or equalsthe fair market value of the underlying stock on the date of grant, nocompensation expense has been recognized.

Proforma information regarding net income and earnings per share is required by Statement123, and has been determined as if the Company had accounted for its employee stock options under the fair value method of thatStatement.  The fair value for these options was estimated at the date of grant using a Black-Scholes option-pricingmodel.  No options were granted or vested and, accordingly, no option-pricing assumptions or proforma disclosures arepresented for that year.

The Black-Scholes option valuation model was developed for use in estimating fair value oftraded options which have no vesting restrictions and are fully transferable.  In addition, option valuation models requirethe input of highly subjective assumptions including the expected stock price volatility.  Because the Company's employeestock options have characteristics significantly different from those of traded options, and because changes in the subjectiveinput assumptions can materially affect the fair value estimate, in management's opinion, the existing models do not necessarilyprovide a reliable single measure of the fair value of its employee stock options.

For purposes of proforma disclosures, the estimated fair value of the options is includedin expense over the option's vesting period or expected life. As of  June 30, 2004, all options to purchase 9,000,000 sharesof the Company's common stock were extinguished.

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**TRANS MAX TECHNOLOGIES, INC.SELECTED NOTES TO UNAUDITED CONDENSEDCONSOLIDATED FINANCIAL STATEMENTS, CONTINUED**

6.            STOCKHOLDERS' EQUITY, CONTINUED

A summary of the Company's stock option activity and related information for the sixmonths ended June 30, 2004 follows:

                                                                    NUMBER OF                                                                   SHARES                                                                   UNDER                  WEIGHTED-AVERAGE                                                                   OPTIONS              EXERCISE PRICE

Outstanding - December 31, 2003         1,950,000                $       0.01667Granted                                                     7,050,000               $       0.01667Exercised                                                                 -                                    -Forfeited during2004                              9,000,000                                   -Outstanding -  June 30,2004                                0

7.             RELATED PARTYTRANSACTIONS

The Company has entered into four notes payable agreements with certain of itsstockholders (See Note 5).  Included in accrued expenses at  June 30, 2004 is accrued interest payable to thesestockholders of $ 8,000 related to these notes.  . The Company has a license agreement with its Chief Scientist for itsignition system product line whereby it has acquired all of his rights to patents, trademarks, technical information and tradesecrets through November 30, 2021 by payment of a yearly license fee of $1,000.

In November 2003, the Company agreed to provide a $1.5 million line of credit to provideproducts and services to Aero Marine Engine, Inc., a company owned by the majority stockholders of the Company.  Pursuant tothe agreement between the Company and Aero Marine Engine, Inc., for every $2 paid to the Company by Aero Marine Engine, Inc., theCompany will extend $1 of credit, up to a maximum of $1.5 million dollars.  As of  June 30, 2004, the Company has notadvanced any money under this agreement.  Aero Marine does not have sufficient funds to pay the Company in order to receivecredit, under this agreement. At June 30, 2004, the Company had a receivable from Aero Marine of $314,339. There is substantialdoubt about the ability of Aero Marine to repay the Company. These advances were made in connection with relocating this affiliatedcompany to Ronkonkoma, New York and funding this affiliated company’s payroll.

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**TRANS MAX TECHNOLOGIES, INC.SELECTED NOTES TO UNAUDITED CONDENSEDCONSOLIDATED FINANCIAL STATEMENTS, CONTINUED**

8.             SUBSEQUENTEVENTS

On July 7, 2004 the Company changed transfer agents from Manhattan Transfer RegisterCompany to Intercontinental Transfer and Register Agency, Inc. (see related 8K filing)

Also on July 7, 2004 the Company moved it corporate headquarters to Las Vegas, Nevada.(see related 8K filing)

On July 15, 2004 the Company acquired 100% of the issued and outstanding shares of BognerIndustries, Inc. for 31,200,000 shares of the Company’s stock, bearing a two (2) year restrictive legend, issued two (2) 18month employment agreements, together with and income and growth participation, some of which is guaranteed to the formerprincipals of Bogner Industries, Inc. (see related 8K filing)

On July 20, 2004 the Board of Directors adopted a resolution authorizing and approving a200 to 1 reverse stock split with the effective date of August 9, 2004 and the trading symbol of the Company was changed to TMAX.(see related 8K filings)

On August 24, 2004 the Company entered into an Agreement with Groupo Aquinas SA wherebyGroupo Aquinas SA assigned to the Company all the marketing and purchasing rights to water making technologies together with allrelated intellectual properties, including a Water Air Machine (WAM), which produces large quantities of drinkable water from theair at a low cost, in exchange for 50,000,000 shares of common stock of the Company.  The certificates will bear theappropriate 2-year restrictive legend. (see related 8K filing)

This issuance of stock changes the control of the Company to Groupo Aquinas SA, a companywith the same Managing Director as the three former control companies. (see related 8K filing)

On August 24, 2004 the Company entered into a Joint Venture Agreement with AdaptivePropulsion Systems, LLC (“Adaptive”), a wholly owned subsidiary of Tactronics.  Adaptive will provide 100% of thecapital and labor to build to military grade Water Air Machines to be mounted on military vehicles. Adaptive will pay the Company a20% gross royalty on all orders of the Water Air Machines. The Company will have the rest of the world military market and allcivilian commercial applications, for which the Company will pay a five (5%) percent gross royalty on such orders to Adaptive. (seerelated 8K filing)

On August 25, 2004 the Company entered into a Consulting Fee Agreement with NinoInvestment Trust, which will continue to provide consulting services for all of the Company’s businesses and will alsocontinue to coordinate prospective acquisitions in European countries. The consulting fee is 2,400,000 shares of the common stockof the Company, which shares the Company intends to register with the Securities and Exchange Commission on the Form S-8Registration Statement under the Securities Act of 1933. (see related 8K filing)

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Forward-looking Statements

This Report on Form 10-QSB contains certain forward-looking statements.These forward-looking statements include statements regarding (i) marketing plans, capital and operations expenditures, and resultsof operations; (ii) potential financing arrangements; (iii) potential utility and acceptance of the Company's existing and proposedservices; and (iv) the need for, and availability of, additional financing.

The forward-looking statements included herein are based on currentexpectations and involve a number of risks and uncertainties. These forward-looking statements are based on assumptions regardingthe business of the Company which involve judgments with respect to, among other things, future economic and competitive conditionsand future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond thecontrol of the Company. Although the Company believes that the assumptions underlying the forward-looking statements arereasonable, any of the assumptions could prove inaccurate and, therefore, actual results may differ materially from those set forthin the forward-looking statements. In light of the significant uncertainties inherent in the forward-looking information containedherein, the inclusion of such information should not be regarded as any representation by the Company or any other person that theobjectives or plans of the Company will be achieved.

OVERVIEWPerma-Tune Electronics, Inc. ("Perma-Tune") was incorporated in 1993 in the state of Texas.  The Company designs andmanufactures high performance electronic ignition systems for distribution throughout the United States, Canada and Europe. On July 21, 2003 Perma-Tune acquired 100% of the issued and outstanding stock of Trans Max Technologies, Inc. ("Trans Max"), aNevada corporation, in exchange for 15,177,300 shares of Perma-Tune's common stock (pre 2 for 1 and 6 for 1 stock splits).  Asa result of this acquisition, the control of Perma-Tune shifted to the former shareholders of Trans Max and this transaction wastreated as a recapitalization.  As a part of this recapitalization, Perma-Tune Electronics, Inc. changed its name to Trans MaxTechnologies, Inc. (the "Company").

MANAGEMENT ESTIMATES

The preparation of condensed consolidated financial statements in conformity withaccounting principles generally accepted in the United States of America requires management to make estimates and assumptions thataffect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenueand expenses during the reporting period.  Actual results could differ from those estimates.

REVENUE RECOGNITION

The Company recognizes revenue when persuasive evidence of an arrangement exists, deliveryhas occurred, the sales price is fixed or determinable and collectibility is probable.  Generally, these criteria are met atthe time product is shipped.  The Company provides for the estimated cost of product warranties upon shipment.  TheCompany has a no return policy and has had no returns in the last two years. Shipping and handling costs are included in cost ofgoods sold.

RESEARCH AND DEVELOPMENT

Research and development activities are expensed as incurred, including costs relating topatents or rights which may result from such expenditures.

CONCENTRATIONS OF CREDIT RISK

Financial instruments which subject the Company to concentrations of credit risk includecash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with major financialinstitutions selected based upon management's assessment of the banks' financial stability.  Balances periodically exceed the$100,000 federal depository insurance limit. The Company has not experienced any losses on deposits.  Accounts receivablegenerally arise from sales of services to customers operating in the United States.  Collateral is generally not required forcredit granted.  As of  June 30, 2004, approximately 35% of the Company's trade receivables were due from onecustomer.  The Company provides allowances for potential credit losses when necessary.

PROPERTY AND EQUIPMENT

Property and equipment is stated at cost.  Depreciation is computed using thestraight-line method over the estimated useful lives of three to seven years for office furniture and equipment.  Leaseholdimprovements are depreciated over the shorter of the useful life of the improvement or the life of the related lease. Additions orimprovements that increase the value or extend the life of an asset are capitalized. Expenditures for normal maintenance andrepairs are expensed as incurred.  Disposals are removed from the accounts at cost less accumulated depreciation and any gainor loss from disposition is reflected in operations currently.

INVENTORIES

Inventories are stated at the lower of cost or market, with cost determined on a first-in,first-out basis.

LIQUIDITY

For the six months ended June 30, 2004, the Company had a net loss of $(1,962,797) and netincome of $ 6,357 for the same period in 2003. For the six months ended June 30, 2004 the Company had negative cash flows fromoperations of $763,799 ( and positive cash flows from operations of $ 6,584 for the same period in 2003).  In addition to therevenues provided by the normal operations of the electronic ignition product line, the Company has been dependent on additionalcapital contributions from shareholders and debt financing to fund its cash requirements.

As of  June 30, 2004 the Company's cash reserves totaled $29,656.  The Companyhas temporarily discontinued production and sales efforts as well as further research and development.  During the nextquarter the Company expects to decide on the future of production and research and development. .  This decision couldsignificantly  impact demand for the Company's products.

To assist with funding its operations, the Company's majority stockholders contributedadditional paid-in capital of $236,688 and additional loans of $ 197,289 during the six months ended June 30, 2004.  During2004 and beyond the Company will require additional capital.  Although the current majority stockholders of the Company havemade a verbal commitment, with no guarantee, to continue to fund the research and development and sales and marketing efforts ofthe Company in 2004 if alternate financing cannot be obtained, there can be no assurance that any new capital would be available tothe Company or that adequate funds for the Company's operations, whether from the Company's revenues, financial markets, or otherarrangements will be available when needed or on terms satisfactory to the Company. The failure of the Company to obtain adequateadditional financing may require the Company to delay, curtail or scale back some or all of its research and development programs,sales and marketing efforts, and manufacturing operations.

PROPERTY AND EQUIPMENT

Property and equipment, at June 30, 2004, consists of the following:

    Machinery andequipment                            $    72,813    Less accumulateddepreciation                         (62,112)    Property and equipment,net                              $10,701

Depreciation expense was $673 and $1,500 for the six months ended June 30, 2004 and 2003,respectively.  Leasehold improvements of $ 822,046 were written off as the building in Ronkonkoma, New York wasabandoned.

NOTES PAYABLE TO STOCKHOLDERS

Notes payable to stockholders at June 30, 2004 consisted of the following:

Note payable to a stockholder bearing interest at 10% per year with interest payments duequarterly and the principal due on demand.  This note is collateralized by inventory.  $ 40,000

Note payable to two stockholders and current employees of the Company bearing interest at10% per year with all interest and principal due June 28, 2004 with the option to renew the note for 30 day periods.  The noteis not collateralized.  $23,400.

Note payable to a stockholder and former officer/director of the Company.  There isno formal note agreement; however, the note bears interest at the prime rate and is due on demand. The note is notcollateralized.  $ 271,519

Note payable to a stockholder and former officer/director of the Company.  There isno formal note agreement.  The note bears no interest; however, interest is imputed at the prime rate and the outstandingprincipal balance is due on demand.  The note is not collateralized.   $ 640,270

Total notes payable tostockholders                                               $  975,189                                                                                                               ========

STOCKHOLDERS' EQUITY

In connection with the Company's recapitalization (See Note 2), the Company adopted newarticles of incorporation that authorized the Company to issue 500,000,000 shares of common stock with a par value of $0.001 pershare.  Since the Company's common stock did not previously have a stated par value, common stock for all periods presentedhas been restated to reflect the par value of $0.001 per share.

The Company's articles of incorporation also authorize the issuance of up to 10,000,000shares of preferred stock with characteristics determined by the Company's board of directors.  As of  June 30, 2004 theCompany has not issued any preferred stock.

Effective March 12, 2004 the Company's board of directors approved a six for one forwardsplit of the Company's stock.  As a result, 184,263,395 shares were issued to the stockholders of the Company.  Par valueof the stock remained at $0.001 per share and, accordingly, $184,263 was transferred from additional paid-in capital to commonstock.  The effect of this stock split was recorded retroactively in the December 31, 2003 audited financial statements and,accordingly, all references to the number of common shares and per common share amounts have been restated to give retroactiveeffect to the stock split for all periods presented in these interim financial statements.

On May 12, 2004 the Company issued 100,000 restricted shares to a consulting firm for theintroduction of business opportunities.  The cost associated with this issuance has been charged to consulting expense in thesecond quarter.

On May 25, 2004 Eastern Business Associates, Inc., Balboa Group, Inc. and FinancialInvestors, Inc. each acquired 43,002,350 shares of the Company’s stock or 19.4% of the outstanding shares resulting in achange in control of the Company.  All three companies have the same Managing Director. (see related 8K filing)

STOCK OPTIONS

The Company periodically issues incentive stock options to key employees, officers anddirectors to provide additional incentives to promote the success of the Company's business and to enhance the ability to attractand retain the services of qualified persons.  The issuances of such options are approved by the Board of Directors.  Theexercise price of an option granted is determined by the fair market value of the stock on the date of grant.

  The Company has elected to follow Accounting Principles Board Opinion No. 25,"Accounting for Stock Issued to Employees" (APB 25) and related Interpretations in accounting for its employee stock optionsbecause, as discussed below, the alternative fair value accounting provided for under FASB Statement No. 123, "Accounting forStock-Based Compensation", requires use of option valuation models that were not developed for use in valuing employee stockoptions.  Under APB 25, because the exercise price of the Company's employee stock options is greater than or equals the fairmarket value of the underlying stock on the date of grant, no compensation expense has been recognized.

Proforma information regarding net income and earnings per share is required by Statement123, and has been determined as if the Company had accounted for its employee stock options under the fair value method of thatStatement.  The fair value for these options was estimated at the date of grant using a Black-Scholes option-pricingmodel.  No options were granted or vested and, accordingly, no option-pricing assumptions or proforma disclosures arepresented for that year.

The Black-Scholes option valuation model was developed for use in estimating fair value oftraded options which have no vesting restrictions and are fully transferable.  In addition, option valuation models requirethe input of highly subjective assumptions including the expected stock price volatility.  Because the Company's employeestock options have characteristics significantly different from those of traded options, and because changes in the subjectiveinput assumptions can materially affect the fair value estimate, in management's opinion, the existing models do not necessarilyprovide a reliable single measure of the fair value of its employee stock options.

For purposes of proforma disclosures, the estimated fair value of the options is includedin expense over the option's vesting period or expected life. As of  June 30, 2004, all options to purchase 9,000,000 sharesof the Company's common stock were extinguished.

A summary of the Company's stock option activity and related information for the sixmonths ended June 30, 2004 follows:   

                                                                    NUMBER OF                                                                   SHARES                                                                   UNDER                  WEIGHTED-AVERAGE                                                                   OPTIONS              EXERCISE PRICE

Outstanding - December 31, 2003          1,950,000                $       0.01667Granted                                                       7,050,000               $       0.01667Exercised                                                                   -                                   -Forfeited during2004                               9,000,000                                   -Outstanding -  June 30,2004                                 0

RELATED PARTY TRANSACTIONS

The Company has entered into four notes payable agreements with certain of itsstockholders (See Note 5).  Included in accrued expenses at  June 30, 2004 is accrued interest payable to thesestockholders of $ 8,000 related to these notes.  . The Company has a license agreement with its Chief Scientist for itsignition system product line whereby it has acquired all of his rights to patents, trademarks, technical information and tradesecrets through November 30, 2021 by payment of a yearly license fee of $1,000.

In November 2003, the Company agreed to provide a $1.5 million line of credit to provideproducts and services to Aero Marine Engine, Inc., a company owned by the majority stockholders of the Company.  Pursuant tothe agreement between the Company and Aero Marine Engine, Inc., for every $2 paid to the Company by Aero Marine Engine, Inc., theCompany will extend $1 of credit, up to a maximum of $1.5 million dollars.  As of  June 30, 2004, the Company has notadvanced any money under this agreement.  Aero Marine does not have sufficient funds to pay the Company in order to receivecredit, under this agreement. At June 30, 2004, the Company had a receivable from Aero Marine of $314,339. There is substantialdoubt about the ability of Aero Marine to repay the Company. These advances were made in connection with relocating this affiliatedcompany to Ronkonkoma, New York and funding this affiliated company’s payroll.

****Item 3. Controls and Procedures****

Within 90 days prior to the date of filing of this report, the Companycarried out an evaluation, under the supervision and with the participation of the Company's management, including the ChiefExecutive Officer and the Chief Financial Officer, of the design and operation of the Company's disclosure controls and procedures.Based on this evaluation, the Company's Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosurecontrols and procedures are effective for gathering, analyzing and disclosing the information the Company is required to disclosein the reports it files under the Securities Exchange Act of 1934, within the time periods specified in the SEC's rules and forms.There have been no significant changes in the Company's internal controls or in other factors that could significantly affectinternal controls subsequent to the date of this evaluation.

PARTII.                OTHER INFORMATION

Item 1.   Legal Proceedings.

None

Item 2.   Changes in Securities

None

Item 3.   Default Upon Senior Securities

None

Item 4.   Submission of matters To a Vote of Security Holders

None

Item 5.  Other Events.

On May 25, 2004, Eastern Business Associates, Inc., a Bahamian corporation, acquired43,002,350 shares of the Registrant's common stock, which constitutes approximately 19.4% of the Registrant's issued andoutstanding shares of its common stock.

On May 25, 2004, Balboa Group, Inc., a Bahamian corporation, acquired 43,002,350 shares ofthe Registrant’s common stock, which constitutes approximately 19.4% of the Registrant’s issued and outstanding sharesof its common stock.

On May 25, 2004, Financial Investors, Inc., a Bahamian corporation, acquired 43,002,350shares of the Registrant’s common stock, which constitutes approximately 19.4% of the Registrant’s issued andoutstanding shares of its common stock.

Samuel Higgins is the Managing Director of all three of the aforesaidcorporations.

On May 28, 2004, Peter Mergenthaler was removed as President, Secretary-Treasurer anddirector for reported misuse of company funds and stock accounts and Paul Cervino was replaced as a director.  The newmajority shareholders, Balboa Group, Inc., Financial Investors, Inc. and Eastern Business Associates, Inc. pursuant to Section78.320(2) of the Nevada Revised Statutes executed a Written Consent of the Shareholders of Trans Max Technologies, Inc., a Nevadacorporation, giving their written consent to the election of Ray Brouzes and Frances Langford as directors of the Registrant, inlieu of (1) the annual meeting of the shareholders or (2) a special meeting in lieu of annual meeting of the shareholders for thepurpose of electing the directors of the corporation for the ensuing year. (see related 8K and 8K/A filing).

Effective May 28, 2004, Ray Brouzes and Frances Langford assumed their duties as the newDirectors of the Registrant.

Effective May 29, 2004, Peter Mergenthaler was removed as President andSecretary-Treasurer of the Registrant, and Ray Brouzes was elected and is serving as President, and Frances Langford was electedand is serving as Secretary-Treasurer of the Registrant.

Item 6.   Exhibits and Reports.

(a)           EXHIBITS.
| **EXHIBIT NUMBER** | **DESCRIPTION**              | **LOCATION** |
|--------------------|------------------------------|--------------|
| 31.1               | Rule 15d-14(a) Certification | Attached     |
| 32.2               | Rule 1350 Certification      | Attached     |

REPORTS ON FORM 8-K.

Form 8-K filed on June 28, 2004, Item 1. Changes in Control of Registrant and Item 5.Other Events, accession number 0001117768-04-00026 and incorporated herein.

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunder dulyauthorized.
|                                 | **TRANS MAX TECHNOLOGIES, INC.**                                                                                                                               |
|---------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Dated:  September 20, 2004 | By: /s/    Raymond Brouzes                 Raymond Brouzes,President |