SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

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

           For the quarterly period ended March 31, 2000

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1937

     For the transition period from                  to
                                    ----------------    ----------------

                        Commission file number: 000-22273

                           SONIC JET PERFORMANCE, INC.
        (Exact Name of Small Business Issuer as Specified in Its Charter)

         COLORADO                                          84-1383888
 (State of Incorporation)                (I.R.S. Employer Identification No.)


                               15662 COMMERCE LANE
                       HUNTINGTON BEACH, CALIFORNIA 92649
                    (Address of Principal Executive Offices)

                                 (714) 895-0944
                (Issuer's Telephone Number, including Area Code)

                                 NOT APPLICABLE
        (Former Name, Former Address and Former fiscal Year, if Changed
                               Since Last Report)

Check whether the issuer: (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.

YES [X]      NO [ ]


As of March 31, 2000, the Issuer had 12,730,000 shares of Common Stock, no par
value, outstanding.


                                       1


<PAGE>

                           SONIC JET PERFORMANCE, INC.

                                   FORM 10-QSB

                  FOR THE QUARTERLY PERIOD ENDED March 31, 2000

                                Table of Contents

                          PART I. FINANCIAL INFORMATION

Item 1.      Financial Statements

             Balance Sheet at March 31, 2000 (unaudited)

             Statement of operations for the Three months ended March 31, 2000
             and 1999 (unaudited)

             Statements of Cash Flows for the Three months ending March 31, 2000
             and 1999 (unaudited)

             Notes to Consolidated Financial Statements (unaudited)

Item 2.      Management's Discussion and Analysis or Plan of operations

             General

             Results of operations

             Liquidity and Capital Resources

                           PART II. OTHER INFORMATION

Item 1.      Legal Proceedings

Item 2.      Changes in Securities

Item 3.      Defaults upon Senior Securities

Item 4.      Submission of Matters to a vote of Security Holders

Item 5.      Other Information

Item 6.      Exhibits and reports on Form 8-K


                                       2


<PAGE>

<TABLE>
                                                                          SONIC JET PERFORMANCE, INC. AND SUBSIDIARIES
                                                                                           CONSOLIDATED BALANCE SHEETS
                                                                                            MARCH 31, 2000 (UNAUDITED)

----------------------------------------------------------------------------------------------------------------------


<CAPTION>
                                                         ASSETS

<S>                                                                                                     <C>
CURRENT ASSETS
     Cash                                                                                               $     108,520
     Accounts receivable - trade                                                                              297,965
     Inventories                                                                                            1,105,892
     Due from related parties                                                                                 536,479
     Other                                                                                                      7,779
                                                                                                        --------------

         Total current assets                                                                               2,056,635

PROPERTY AND EQUIPMENT, net                                                                                 3,695,013

OTHER ASSETS
     Licensing rights                                                                                         535,000
     Other                                                                                                     50,787
                                                                                                        --------------

                      TOTAL ASSETS                                                                      $   6,337,435
                                                                                                        ==============


                                                           3
</TABLE>


<PAGE>

<TABLE>
                                                                          SONIC JET PERFORMANCE, INC. AND SUBSIDIARIES
                                                                                           CONSOLIDATED BALANCE SHEETS
                                                                                            MARCH 31, 2000 (UNAUDITED)

----------------------------------------------------------------------------------------------------------------------


<CAPTION>
                                          LIABILITIES AND STOCKHOLDERS' EQUITY

<S>                                                                                                     <C>
CURRENT LIABILITIES
     Accounts payable                                                                                   $     240,465
     Accrued payroll taxes                                                                                     72,175
     Accrued interest and other accrued liabilities                                                           348,222
     Current portion of capitalized lease obligations                                                           1,303
     Convertible debt - related party                                                                         931,358
                                                                                                        --------------

         Total current liabilities                                                                          1,593,523

CAPITALIZED LEASE OBLIGATIONS, net of current portion                                                          13,356
SUBORDINATED NOTE PAYABLE - RELATED PARTY                                                                     600,000
                                                                                                        --------------

              Total liabilities                                                                             2,206,879
                                                                                                        --------------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
     Preferred stock, no par value
         10,000,000 shares authorized
         Series A Convertible Preferred stock
         1,600 and 1,600 shares issued and outstanding                                                      1,500,000
     Common stock, no par value
         100,000,000 shares authorized
         12,730,000 and 12,676,000 shares issued and outstanding,
              including 432,500 held in treasury                                                            3,672,194
     Additional paid-in capital - stock warrant outstanding                                                   692,903
     Additional paid-in capital                                                                               607,000
     Shares committed to be issued                                                                            799,455
     Accumulated comprehensive loss                                                                            (2,500)
     Accumulated deficit                                                                                   (3,138,496)
                                                                                                        --------------

                  Total stockholders' equity                                                                4,130,556
                                                                                                        --------------

                      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                        $   6,337,435
                                                                                                        ==============


                                                          4
</TABLE>


<PAGE>


<TABLE>
                                                                          SONIC JET PERFORMANCE, INC. AND SUBSIDIARIES
                                                                                 CONSOLIDATED STATEMENTS OF OPERATIONS
                                                        FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (UNAUDITED)

----------------------------------------------------------------------------------------------------------------------


<CAPTION>
                                                                                          For the Three Months Ended
                                                                                                   March 31,
                                                                                        ------------------------------
                                                                                             2000            1999
                                                                                        --------------  --------------
                                                                                          (unaudited)     (unaudited)

<S>                                                                                     <C>             <C>
SALES                                                                                   $     579,374   $     569,700

COST OF SALES                                                                                 445,961         272,114
                                                                                        --------------  --------------

GROSS PROFIT                                                                                  133,413         297,586

GENERAL AND ADMINISTRATIVE EXPENSES                                                           394,780         180,942
                                                                                        --------------  --------------

INCOME (LOSS) FROM OPERATIONS                                                                (261,367)        116,644
                                                                                        --------------  --------------

OTHER INCOME (EXPENSE)
     Other income                                                                               5,083               0
     Other expense                                                                               (817)              0
     Interest income                                                                              135             893
     Interest expense                                                                        (749,323)        (15,000)
                                                                                        --------------  --------------

         Total other income (expense)                                                        (744,922)        (14,107)
                                                                                        --------------  --------------

INCOME (LOSS) BEFORE MINORITY INTEREST                                                     (1,006,289)        102,537

MINORITY INTEREST                                                                                   -             760
                                                                                        --------------  --------------

NET INCOME (LOSS)                                                                       $  (1,006,289)  $     103,297
                                                                                        ==============  ==============

BASIC EARNINGS (LOSS) PER SHARE                                                         $       (0.08)  $        0.01
                                                                                        ==============  ==============

DILUTED EARNINGS (LOSS) PER SHARE                                                       $       (0.07)  $        0.01
                                                                                        ==============  ==============

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING

     BASIC                                                                                 13,730,000      12,620,000
                                                                                        ==============  ==============

     DILUTED                                                                               14,330,000      13,420,000
                                                                                        ==============  ==============


                                                            5
</TABLE>


<PAGE>


<TABLE>
                                                                          SONIC JET PERFORMANCE, INC. AND SUBSIDIARIES
                                                                       CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                                                                 FOR THE THREE MONTHS ENDED MARCH 31, 2000 (UNAUDITED)

----------------------------------------------------------------------------------------------------------------------


<CAPTION>
                                                                                                          Additional
                                                                                                            Paid-In
                                                                                                           Capital -
                                               Preferred Stock                   Common Stock                Stock
                                        ------------------------------  ------------------------------      Warrant
                                           Shares         Amount            Shares          Amount       Outstanding
                                        --------------  --------------  --------------  --------------  --------------
<S>                                             <C>     <C>                <C>          <C>             <C>
BALANCE, DECEMBER 31, 1999                      1,600   $   1,500,000      12,676,000   $   3,618,194   $     316,026
ISSUANCE OF COMMON STOCK (unaudited)                                           54,000          54,000
CAPITAL CHANGES DUE TO DEBT FINANCING
   (unaudited)                                                                                                376,877
CUMULATIVE TRANSLATION ADJUSTMENT
   (unaudited)
NET LOSS (unaudited)
                                        --------------  --------------  --------------  --------------  --------------

BALANCE, MARCH 31, 2000 (UNAUDITED)             1,600   $   1,500,000      12,730,000   $   3,672,194   $     692,903
                                        ==============  ==============  ==============  ==============  ==============


</TABLE>
(CONTINUED)


<TABLE>
<CAPTION>
                                                                          Accumulated
                                                            Shares         Compre-
                                          Additional       Committed       hensive
                                           Paid-In           to be          Income       Accumulated
                                           Capital          Issued          (Loss)          Deficit         Total
                                        --------------  --------------  --------------  --------------  --------------
<S>                                     <C>             <C>             <C>             <C>             <C>
BALANCE, DECEMBER 31, 1999              $     272,000   $     799,455   $      (4,943)  $  (2,132,207)  $   4,368,525
ISSUANCE OF COMMON STOCK (unaudited)                                                                           54,000
CAPITAL CHANGES DUE TO DEBT FINANCING
   (unaudited)                                335,000                                                         711,877
CUMULATIVE TRANSLATION ADJUSTMENT
   (unaudited)                                                                  2,443                           2,443
NET LOSS (unaudited)                                                                       (1,006,289)     (1,006,289)
                                        --------------  --------------  --------------  --------------  --------------

BALANCE, MARCH 31, 2000 (UNAUDITED)     $     607,000   $     799,455   $      (2,500)  $  (3,138,496)  $   4,130,556
                                        ==============  ==============  ==============  ==============  ==============


                                                          6
</TABLE>


<PAGE>

<TABLE>
                                                                          SONIC JET PERFORMANCE, INC. AND SUBSIDIARIES
                                                                                 CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                        FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (UNAUDITED)

----------------------------------------------------------------------------------------------------------------------


<CAPTION>
                                                                                                    For the
                                                                                              Three Months Ended
                                                                                                   March 31,
                                                                                        ------------------------------
                                                                                             2000            1999
                                                                                        --------------  --------------
                                                                                          (unaudited)     (unaudited)

<S>                                                                                     <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
     Net income (loss)                                                                  $  (1,006,289)  $     103,297
     Adjustments to reconcile net income (loss) to net cash
         provided by (used in) operating activities
              Depreciation and amortization                                                    63,392          13,699
              Loss on sale of property and equipment                                            3,071               -
              Interest relating to beneficial conversion and warrants                         696,001               -
              Minority interest                                                                 8,910          (1,396)
              Common stock issued for services                                                 54,000               -
     (Increase) decrease in
         Inventories                                                                           26,007        (280,848)
         Due from related parties                                                            (106,210)         73,614
         Accounts receivable                                                                 (286,121)        (47,344)
         Prepaid inventories                                                                   20,000               -
         Other receivables                                                                     (7,779)        (14,714)
         Other current assets                                                                   4,150           8,607
     Increase (decrease) in
         Accounts payable                                                                    (207,232)        142,168
         Accrued payroll taxes                                                                  3,772          (9,627)
         Other accrued liabilities                                                             10,986          19,543
         Due to related parties                                                                     -         (20,589)
         Accrued interest                                                                      47,041          15,000
                                                                                        --------------  --------------

Net cash provided by (used in) operating activities                                          (676,301)          1,410
                                                                                        --------------  --------------

CASH FLOWS FROM INVESTING ACTIVITIES
     Purchase of property and equipment                                                       (14,817)       (502,277)
     Proceeds from the sale of property and equipment                                           1,000               -
     Sale of other assets                                                                     (28,212)              -
     Proceeds from the sale of other assets                                                         -          12,917
                                                                                        --------------  --------------

Net cash used in investing activities                                                         (42,029)       (489,360)
                                                                                        --------------  --------------

CASH FLOWS FROM FINANCING ACTIVITIES
     Proceeds from bank loan                                                                        -         500,000
     Proceeds from convertible debt - related party                                           741,785               -
     Proceeds from capitalized lease obligation                                                  (312)              -
                                                                                        --------------  --------------

Net cash provided by financing activities                                                     741,473         500,000
                                                                                        --------------  --------------


                                                           7
</TABLE>


<PAGE>

<TABLE>
                                                                          SONIC JET PERFORMANCE, INC. AND SUBSIDIARIES
                                                                                 CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                        FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (UNAUDITED)

----------------------------------------------------------------------------------------------------------------------


<CAPTION>
                                                                                                    For the
                                                                                              Three Months Ended
                                                                                                   March 31,
                                                                                        ------------------------------
                                                                                             2000            1999
                                                                                        --------------  --------------
                                                                                          (unaudited)     (unaudited)

<S>                                                                                     <C>             <C>
EFFECT OF EXCHANGE RATE ON CASH                                                         $       4,820   $           -
                                                                                        --------------  --------------

Net increase (decrease) in cash                                                                27,963          12,050

CASH, BEGINNING OF PERIOD                                                                      80,557         133,135
                                                                                        --------------  --------------

CASH, END OF PERIOD                                                                     $     108,520   $     145,185
                                                                                        ==============  ==============


SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

     INTEREST PAID                                                                      $     749,323   $           -
                                                                                        ==============  ==============

     INCOME TAXES PAID                                                                  $         800   $           -
                                                                                        ==============  ==============


SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
During the three months ended March 31, 2000, the Company recorded the
retirement of $731,700 (unaudited) in building and improvements and a reduction
of $74,397 (unaudited) in accounts payable pursuant to the dissolution of a
joint venture agreement with China Guangxi Nanning Shipyard of Nanning, Guangxi,
China (see Note 12).


                                                           8
</TABLE>


<PAGE>

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business
         Sonic Jet Performance, Inc. ("SJPI"), a Colorado corporation, and
         subsidiaries (collectively, the "Company") are engaged in the design
         and production of watercrafts, boats, and accessories. The principal
         executive office is located in Huntington Beach, California.

         Principles of Consolidation
         ---------------------------
         The consolidated financial statements include the accounts of SJPI and
         its subsidiaries, Nanning Sonic Jet, LLC and Sonic Jet Performance, Inc
         - Florida ("SJPF"), a wholly owned subsidiary of SJPI. All intercompany
         balances and transactions are eliminated in consolidation and 30% of
         the results of its Nanning operations. SJPI manages the day-to-day
         operations of the subsidiary and is represented by three of the five
         directors of the subsidiary.

         Interim Unaudited Financial Information
         ---------------------------------------
         The unaudited financial information furnished herein reflects all
         adjustments, consisting only of normal recurring adjustments, which in
         the opinion of management, are necessary to fairly state the Company's
         financial position, the results of operations, and cash flows for the
         periods presented. The results of operations for the three months ended
         March 31, 2000 are not necessarily indicative of results for the entire
         fiscal year ending December 31, 2000.

         Going Concern

         The company has received a report from its independent auditors on its
         financial statements for the year ending December 31, 1999 that
         includes explanatory paragraph describing the companies uncertainties
         to continue as a going concern. This consolidated financial statement
         contemplate the ability to continue as such and do not include any
         adjustments that might result from this uncertainties.

         Estimates
         The preparation of financial statements in conformity with generally
         accepted accounting principles requires management to make estimates
         and assumptions that affect the reported amounts of assets and
         liabilities and disclosure of contingent assets and liabilities at the
         date of the financial statements, as well as the reported amounts of
         revenues and expenses during the reporting period. Actual results could
         differ from those estimates.

         Treasury Stock
         --------------
         On June 12, 1998, the Company acquired 432,500 shares of common stock
         from its former President for no consideration. These shares are held
         in treasury and will be reissued.

         Cash Equivalents
         ----------------
         For purposes of reporting cash flows, the Company considers all highly
         liquid debt instruments purchased with a maturity of three months or
         less to be cash equivalents. Cash equivalents consist primarily of
         United States government securities.




<PAGE>

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

         Inventories
         -----------
         Inventories are stated at the lower of cost (first-in, first-out
         method) or market. Work in process and finished goods include materials
         and labor.

         Property and Equipment
         ----------------------
         Property and equipment are stated at cost or at the value of the
         operating agreement. Depreciation and amortization are computed using
         the straight-line method over the following estimated useful lives:

                  Furniture and fixtures                               7 years
                  Machinery and equipment                              7 years
                  Tooling and molds                                    7 years
                  Vehicles                                             7 years
                  Leasehold improvements                              15 years

         The Company capitalizes costs incurred on tooling and molds once the
         design of the product is completed and marketability of the product is
         established by independent marketing channels.

         Income Taxes
         ------------
         The Company was a limited liability company until June 18, 1998 and was
         taxed as a partnership, whereby the members were liable for federal and
         state income taxes on their respective shares of the Company's taxable
         income.

         The Company became a "C" corporation effective June 19, 1998. The
         Company uses the asset and liability method of accounting for income
         taxes. The asset and liability method accounts for deferred income
         taxes by applying enacted statutory rates in effect for periods in
         which the difference between the book value and the tax bases of assets
         and liabilities are scheduled to reverse. The resulting deferred tax
         asset or liability is adjusted to reflect changes in tax laws or rates.
         Because the Company has incurred a loss from operations, no benefit is
         realized for the tax effect of the net operating loss carry forward due
         to the uncertainty of its realization.

         Foreign Currency Transaction
         ----------------------------
         Assets and liabilities in foreign currencies are translated at the
         exchange rate prevailing at the balance sheet date. Revenues and
         expenses are translated at the exchange rate prevailing at the
         transaction date, and the resulting gains and losses are reflected in
         the statements of operations. Gains and losses arising from translation
         of a subsidiary's foreign currency financial statements are shown as a
         component of stockholders' equity as accumulated comprehensive income
         (loss).




<PAGE>

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

         Impairment of Long-Lived Assets
         -------------------------------
         The Company reviews long-lived assets to be held and used for
         impairment whenever events or changes in circumstances indicate that
         the carrying amount of an asset may not be recoverable. If the sum of
         the expected future cash flows (undiscounted and without interest
         charges) is less than the carrying amount of the asset, the Company
         would recognize an impairment loss based on the estimated fair value of
         the asset.

         Loss per Share
         --------------
         The Company utilizes SFAS No. 128, "Earnings per Share." Basic loss per
         share is computed by dividing loss available to common stockholders by
         the weighted-average number of common shares outstanding. Diluted loss
         per share is computed similar to basic loss per share except that the
         denominator is increased to include the number of additional common
         shares that would have been outstanding if the potential common shares
         had been issued and if the additional common shares were dilutive.
         Because the Company has incurred net losses, basic and diluted loss per
         share are the same.

         Comprehensive Income (Loss)
         ---------------------------
         The Company utilizes SFAS No. 130, "Reporting Comprehensive Income."
         This statement establishes standards for reporting comprehensive income
         (loss) and its components in a financial statement. Comprehensive
         income (loss) as defined includes all changes in equity (net assets)
         during a period from non-owner sources. Examples of items to be
         included in comprehensive income (loss), which are excluded from net
         loss, include foreign currency translation adjustments and unrealized
         gains and losses on available-for-sale securities. Comprehensive income
         (loss) consists of foreign currency translation adjustments and is
         presented in the consolidated statements of stockholders' equity.


NOTE 2 - INVENTORIES

         Inventories at March 31, 2000 consisted of the following:

         (unaudited)
         -----------

                  Raw materials and supplies                      $     923,983
                  Work in process                                        85,240
                  Finished goods                                         37,578
                  Inventory in transit                                   59,091
                                                                  --------------

                      TOTAL                                       $   1,105,892
                                                                  ==============




<PAGE>

NOTE 3 - CASH

         The Company maintains its cash balances at a bank located in
         California. Deposits at the bank are insured by the Federal Deposit
         Insurance Corporation up to $100,000. At times, the Company holds cash
         with these banks in excess of amounts insured by federal agencies. As
         of March 31, 2000, the uninsured portions of the balances held at the
         bank aggregated to $52,745 (unaudited).


NOTE 4 - PROPERTY AND EQUIPMENT

         Property and equipment at March 31, 2000 consisted of the following:

         (unaudited)
         -----------

                  Furniture and fixtures                          $      19,795
                  Machinery and equipment                               461,817
                  Tooling and molds                                     348,451
                  Tooling - new products                              3,216,033
                  Vehicles                                        $      53,302
                  Leasehold improvements                                 32,740
                                                                  --------------

                                                                      4,132,138
                  Less accumulated depreciation and amortization        437,125
                                                                  --------------

                      TOTAL                                       $   3,695,013
                                                                  ==============

         A total of $2,242,148 (unaudited) of the tooling for new product has
         not been depreciated during the three months ended March 31, 2000 as
         these items will be used in production in the following year.


NOTE 5 - CONVERTIBLE DEBT - RELATED PARTY

         Convertible debt - related party consists of two loan agreements with
         the preferred stockholder to borrow up to $1,500,000 at 12% per annum,
         payable quarterly. The loans mature in August 2000 and are secured by
         all of the Company's assets. The outstanding principal and unpaid
         interest are convertible at any time from the date of the note at 70%
         of the average of the five lowest per share prices during the 15
         trading days prior to conversion.




<PAGE>

NOTE 5 - CONVERTIBLE DEBT - RELATED PARTY (Continued)

         In accordance with FASB's Emerging Issues Task Force Topic No. D-60,
         the Company accounts for the beneficial conversion feature of
         convertible debt securities based on the difference between the
         conversion price and the fair value of the common stock into which the
         security is convertible, multiplied by the number of shares into which
         the security is convertible. The amount attributable to the beneficial
         conversion feature is recognized as additional interest expense over
         the most beneficial conversion period using the effective interest
         method. The Company has recognized the beneficial conversion feature by
         recording interest expense of $492,000, offset by $335,000 of
         additional paid-in capital and $157,000 of Unamortized interest. As of
         March 31, 2000, the Company has borrowed $1,377,029.

         In connection with the execution of these loans, the Company issued two
         warrants to purchase a total of 1,500,000 shares of common stock at an
         exercise price of $2.49 per share. The warrants were effective
         immediately and expires on November 24, 2004. The fair value of the
         warrant was calculated using the Black-Scholes option valuation model
         with the following assumptions: dividend yield of 0%, risk-free
         interest rate of 7%, expected volatility of 70%, and expected life of
         approximately five years. As of March 31, 2000, the warrants were
         valued at $0.99 and $1.269 per share and was still outstanding. The
         Company allocates the proceeds received from debt or convertible debt
         with detachable warrants using the relative fair value of the
         individual elements at the time of issuance. The amount allocated to
         the warrants is accounted for as a debt discount and is amortized to
         interest expense over the expected term of the debt using the effective
         interest method.

         The carrying amount of the convertible debt has been reduced by any
         related unamortized debt discount.


         NOTE 6 - SUBORDINATED NOTE PAYABLE - RELATED PARTY

         The Company has a note payable to one of its stockholders, bearing
         interest at 10%, which is subordinated to the convertible debt holders'
         interest. In an agreement dated November 24, 1999 between the Company,
         the holder of the subordinated promissory note, and the convertible
         note holder, the parties agreed to the following:

         a)       All accrued interest as of November 24, 1999 shall be
                  converted into common stock at a conversion price of 120% of
                  the average stock price for the five days prior to November 1,
                  1999. Interest shall continue to accrue thereafter. This
                  agreement to convert accrued interest into common stock has
                  been recorded as 53,905 shares of common stock to be issued at
                  $143,872, which represents 120% of the average stock price for
                  the five days prior to November 1, 1999.




<PAGE>

         NOTE 6 - SUBORDINATED NOTE PAYABLE - RELATED PARTY (Continued)

         b)       As of March 1, 2000, the principal amount of the loan,
                  together with any further accrued interest, are, under certain
                  conditions, convertible into shares of common stock at 120% of
                  the average stock price for the five days prior to November 1,
                  1999.

         The outstanding balance at March 31, 2000 was $600,000 (unaudited).


NOTE 7 - COMMITMENTS AND CONTINGENCIES

Lease
         The Company leases its facility from its majority stockholder under an
         operating lease agreement. On November 24, 1999, under an agreement
         between several parties, including the Company and the lessor, part of
         the rent payment between November 24, 1999 and March 31, 2000 was
         deferred to November 18, 2003. Future minimum lease payments are as
         follows:

                   Year Ending
                  December 31,
                  ------------

                      2000 (9 months remaining)                   $      67,500
                      2001                                               97,500
                      2002                                               16,500
                      2003                                                6,000
                                                                  --------------

                           TOTAL                                  $     187,500
                                                                  ==============

Rent expense was $21,588 (unaudited) and $18,350 for the three months ended
          March 31, 2000 and 1999, respectively.




<PAGE>

NOTE 7 - COMMITMENTS AND CONTINGENCIES (Continued)

Lease (Continued)
         Future minimum lease payments under a non-cancelable capital lease are
         as follows:

                   Year Ending
                  December 31,
                  ------------

                      2000 (9 month remaining)                    $       2,000
                      2001                                                2,666
                      2002                                               12,615
                                                                  --------------

                                                                         17,281
                  Less amount representing interest                       2,622
                                                                  --------------

                                                                         14,659
                  Less current portion                                    1,303
                                                                  --------------

                           LONG-TERM PORTION                      $      13,356
                                                                  ==============

         Capitalized leased assets included in property and equipment consisted
         of the following:

                  Vehicle                                         $      20,899

                  Less accumulated amortization                           2,787
                                                                  --------------

                      TOTAL                                       $      18,112
                                                                  ==============

         Investment in Joint Venture - Dalian
         ------------------------------------
         The Company has entered into an agreement to invest in a joint venture
         in Dalian, China for the design, manufacture, and selling of watercraft
         jet products. The Company is committed to invest $1,000,000 in the form
         of molds, tooling, and technology. The Company will share 45% of the
         profits or loss from this venture.


NOTE 8 - OTHER RELATED PARTY TRANSACTIONS

         Included in due from related parties at March 31, 2000 are amounts due
         from the following related parties:

         (unaudited)
         -----------


                  Dalian Sonic Jet, Ltd.                          $     460,795
                  Sonic Marketing International, LLC                     35,172
                  Majed Al Rashid                                        40,512
                                                                  --------------

                      TOTAL                                       $     536,479
                                                                  ==============




<PAGE>

NOTE 8 - OTHER RELATED PARTY TRANSACTIONS (Continued)

         Dalian Sonic Jet, Ltd. is a joint venture partner with SJPI, in which
         SJPI shares 45% of the profit or loss of the joint venture. Sonic
         Marketing International, LLC is owned by a stockholder of the Company.
         In the past it marketed the Company's products and has since ceased
         doing business with SJPI.

NOTE 9 - INCOME TAXES

         The Company has incurred no income tax expenses since inception. The
         actual tax benefit differs from the expected tax benefit computed by
         applying the United States federal corporate tax rate of 34% to loss
         before income taxes for the three months ended March 31, 2000 and 1999
         as follows:

<TABLE>
<CAPTION>
                                                                              2000          1999
                                                                        --------------  --------------
                                                                          (unaudited)     (audited)

                  <S>                                                   <C>             <C>
                  Expected tax (benefit)                                $    (350,000)  $      35,000
                  State income taxes, net of federal benefit                  (58,000)          6,000
                  Changes in valuation allowance                              408,000               -
                  Benefit of net operating loss carryforward                        -         (41,000)
                                                                        --------------  --------------

                      TOTAL                                             $           -   $           -
                                                                        ==============  ==============
</TABLE>

         The tax effects of temporary differences that give rise to deferred tax
         assets for the three months ended March 31, 2000 and 1999 were as
         follows:

<TABLE>
<CAPTION>
                                                                              2000          1999
                                                                        --------------  --------------
                                                                          (unaudited)     (audited)

                  <S>                                                   <C>             <C>
                  Net operating loss carry forwards                      $   1,060,000   $      16,000
                  Less valuation allowance                                  1,060,000          16,000
                                                                        --------------  --------------

                      TOTAL                                             $           -   $           -
                                                                        ==============  ==============
</TABLE>


NOTE 10 - STOCK COMPENSATION PLAN

         In February 2000, the Company issued 20,000 shares of common stock to a
         consultant. The fair value of the consultant's services was estimated
         at $20,000. The Company also issued 4,000 shares of common stock to
         various officers as bonuses. The monetary value of the bonuses was
         estimated at $4,000. Another 30,000 shares were issued to a former
         officer of the Company as consideration for the transfer of the domain
         name to the Company.




<PAGE>

NOTE 11 - NANNING FACILITY

         On January 30, 2000, the joint venture agreement with China Guangxi
         Nanning Shipyard of Nanning, Guangxi, China was dissolved, and Nanning
         Sonic Jet, LLC became a wholly owned subsidiary of SJPI. As a result,
         minority interest is eliminated, and the Company recorded the
         retirement of $731,700 (unaudited) in building and improvements and a
         reduction of $74,397 (unaudited) in accounts payable.


                           SONIC JET PERFORMANCE, INC.
                                   FORM 10-QSB
                    FOR THE THREE MONTHS ENDED MARCH 31, 2000

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS

COMPARISON OF THE THREE AND THREE MONTHS ENDED MARCH 31, 2000 VS. THE THREE
MONTHS ENDED MARCH 31, 1999

         The following table sets forth the Company's consolidated statements of
operations and the percentages that such items bear to net sales:

<TABLE>
<CAPTION>
                                             THREE  MONTHS ENDED,             Three  MONTHS ENDED
                                                   MARCH 31,                       MARCH 31
                                             2000              %             1999              %

<S>                                     <C>                   <C>             <C>              <C>
Sales                                   $     579,374          100.0          569,700          100.0%

Cost of Sales                                 445,961           76.9%         272,114           47.8%
                                        --------------  --------------  --------------  --------------
Gross profit(loss)                            133,413           23.1%         297,586           52.2%

Selling, General and Administrative           394,780           68.1%         180,942           31.8%
                                        --------------  --------------  --------------  --------------
Income/(Loss) from operations                (261,367)         (45.0)%        116,644           20.4%

Interest Income                                   135            0.0%             893            0.2%

Interest expenses                            (749,323)         129.2%          15,000            2.6%

Other Income                                    5,083             .9%               0              0%

Other expense                                    (817)            .1%               0              0%

Minority Interest                                   0              0              760             .1%
                                        --------------  --------------  --------------  --------------

Net Income/(Loss)                       $  (1,006,289)        (173.7)%        103,297           18.1%
                                        --------------  --------------  --------------  --------------
</TABLE>




<PAGE>

NET SALES
Net sales for the first quarter 2000 increased by $9,674 or 1.7% to $579,374
compared to $569,700 for the first quarter of 1999. The sales for the quarter
2000 includes 6 Delta, 6 Vortex and 3 Fire Rescue boats. Sales of parts amounted
to $106,212 in the first quarter of 2000 as compared to $238,000 in the first
quarter of 1999. Sale of Fire Rescue Jets amounted to $120,906 in the first
quarter of 2000, as compared to $329,309 in the first quarter of 1999. Sales of
Delta Jets amounted to $97,634 compared to $15,300 in the first quarter of 1999.
Sales of Vortexs amounted to $232,354 compared to zero in the first quarter of
1999. Sale of trailers amounted to $12,950 compared to $2,849 in the first
quarter of 1999.

COST OF SALES
Cost of Sales for the first quarter of 2000 increased by $173,847 or 63.89% to
$445,961 compared to $272,114 for the first quarter of 1999. This is mainly
attributed to the cost of production of boats sold during the 1 quarter 2000
compared to cost of parts sold during the first quarter 1999.

GROSS PROFIT
Gross profit for the first quarter of 2000 decreased by $164,173 or 55.17% to
$133,413 compared to $297,586 for the first quarter of 1999. Sales in the first
quarter of 2000 includes the sales of parts to Dalian Sonic Jet Ltd. At a lower
profit margin when compared to the sale of parts in 1999. The profit margin on
sale of parts is less than the profit margin on sales of the finished goods in
the first quarter 2000 as compared to the profit margin on sale of parts was
higher than the margin on sale of finished goods in the first quarter of 1999..
Further, the Company is mainly engaged in the production of watercraft and boats
in the year 2000 on which the gross profit margin is approximately 29%.


SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses for the first quarter of 2000
increased  by $213,838 or 118.18% to $394,780 compared to $180,942 for the first
quarter of 1999.

Administration salary and payroll taxes increased by 76,625 or 270.5% to $76,625
for the first quarter Of 2000 compared to $20,680 for the first quarter 1999.
Royalty expenses decreased by $6,500 or 52% to $6,000 for the first quarter of
2000 compared to $12,500 for the first quarter of 2000. This decrease in royalty
is due to the reduction in the rate as revised in the royalty agreement. Travel
expenses for the first quarter of 2000 increased by $14,899 or 510% to $17,821
from $2,922 for the first quarter of 1999. Travel expenses were incurred for the
Miami and Sacramento boat shows in the first quarter of 2000 to promote the
companies products. Advertising expenses for the first quarter of 2000 increased
by $23,820 to $23,820 as compared to none in the first quarter of 1999. Trade
show expenses increased by $9,606 to $9,606 compared to none in the first
quarter of 1999. Commission expenses increased by $25,140 to $25,140 for the
first quarter of 2000, compared to none in the first quarter of 1999. Commission
was paid or provided to the salesmen for their efforts in the first quarter of
2000, compared to the sales and marketing functions were managed by an outside
marketing company in the first quarter of 1999.

NET INCOME (LOSS)

Net Income (Loss) for the first quarter of 2000 was ($261,367) as compared to a
profit of $116,644 for the first quarter of 1999. This increase in loss is
mainly due to the increase in the selling, general and administrative expenses.




<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

The Company's principal sources of capital have been cash flow from its
operations and loans on an as-needed basis. Company has $108,520 as cash and
$297,965 trade receivables balance which may not be sufficient to carry business
during the remaining period ending December 2000. Based on its current operating
plan, the Company anticipates that additional financing will be required to
finance its operations and capital expenditures. The Company's currently
anticipated levels of revenues and cash flow are subject to many uncertainties
and cannot be assured. Further, unforeseen events may occur causing the Company
to raise additional funds. The amount of funds required by the Company will
depend upon many factors, including without limitation, the extent and timing of
sales of the Company's products, future product costs, the timing and costs
associated with the establishment and/or expansion, as appropriate, of the
Company's manufacturing, development, engineering and customer support
capabilities, the timing and cost of the Company's product development and
enhancement activities and the Company's operating results. Until the Company
generates cash flow from operations which will be sufficient to satisfy its cash
requirements, the Company will need to seek alternative means for financing its
operations and capital expenditures and/or postpone or eliminate certain
investments or expenditures. Potential alternative means for financing may
include obtaining additional debt or equity financing. Furthermore, if the
Company raises funds through the sale of additional equity securities, the
Common Stock currently outstanding may be further diluted.

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings.                                              None.

Item 2.  Changes in Securities.                    54,000 Shares were issued to
                                                   employees and a consultant in
                                                       exchange for services.
                Pursuant to employee stock award ,these shares were awarded to:
                        Alex Mardikian  1,000 Shares
                        Hratch Khedesian        1,000 Shares
                        Vatche Khedesian        1,000 Shares
                        George Tfaye            1,000 Shares

Pursuant to agreement with Alex Mardikian for the purchase of Domine name of
"sonicjet.com" Company 30,000 Shares were issued.

Item 3.  Defaults Upon Senior Securities.                                None.

Item 4.  Submission of Matters to a Vote of Security Holders.            None.

Item S.  Other Information.                                              None.

Item 6.  Exhibits and Reports on Form 8-K.   (a) Exhibits:               None

                                             (b) Reports on Form 8-K.    None


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, thereunto duly authorized.

Date: May 19, 2000                             SONIC JET PERFORMANCE, INC.

                                               By:   /s/ MADHAVA RAO MANKAL
                                                     ---------------------------

                                              Name:  Madhava Rao Mankal
                                              Title: CFO