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 September 30, 2001

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

           For the transition period from 07-01-01 to 9-30-01


                        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 September 30, 2001, the Issuer had 18,583,936 shares of Common Stock, no
par value, outstanding.



<PAGE>




                           SONIC JET PERFORMANCE, INC.

                                   FORM 10-QSB

                FOR THE QUARTERLY PERIOD ENDED September 30, 2001

                                Table of Contents

                          PART I. FINANCIAL INFORMATION

Item 1.      Financial Statements

             Balance Sheet at September 30, 2001 (unaudited)

             Statement of operations for the Nine months ended September
             30, 2001 and 2000 (unaudited)

             Statements of Cash Flows for the Nine months ending
             September 30, 2001 and 2000 (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



<PAGE>
<TABLE>
<CAPTION>


SONIC JET PERFORMANCE, INC.  AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
September 30, 2001 (UNAUDITED)
------------------------------------------------------------------------
                                                September 30, 2001  December 31, 2000
<S>                                                <C>                            <C>
       ASSETS
CURRENT ASSETS
Cash                                                  $   2,436                         $40,129
Accounts receivable                                      97,153                          45,760
Inventories                                             386,917                         574,903
Due from related party                                  277,650                         393,291
Other current assets                                     22,777                           3,450
Restricted Cash                                         200,510                         203,120
                                                   -------------                    ------------
Total current assets                                    987,443                       1,260,653

PROPERTY AND EQUIPMENT, net                           1,272,862                       1,359,910
Licensing rights                                        267,500                         267,500
                                                  --------------                    ------------
TOTAL ASSETS                                       $  2,527,805                      $2,888,063
                                                  ==============                    ============

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable                                   $   306,472                     $  192,206
Accrued Payroll Taxes                                   62,886                         68,486
Accrued interest and other accrued liabilities          80,426                        687,049
Current portion of capitalized lease obligation            708                          1,432
Convertible debt - related party                          ---                       2,801,301
                                                  -------------                   ------------
Total current liabilities                              450,492                      3,750,474
Capitalized lease obligations, net of
Current portion                                         11,454                         12,236
NOTE PAYABLE - STOCKHOLDER                               ----                         600,000
                                                   ------------                   ------------
Total liabilities                                      461,946                      4,362,710
                                                   ------------                   ------------
Total liabilities

COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY

Preferred stock, no par value
10,000,000 shares authorized
Series A convertible preferred stock
1,600 shares issued and outstanding                    -----                        1,500,000
Common stock, no par value
100,000,000 shares authorized
18,583,936 shares issued and outstanding            11,993,216                      4,328,777
Additional paid-in capital - Stock warrant outstanding                              1,024,627
Additional paid-in capital                                                          1,098,000
Shares committed to be issued                                                         143,872
Accumulated comprehensive income                        20,332                         20,330
Accumulated deficit                                 (9,947,689)                    (9,590,253)
                                                  -------------                    -----------
Total stockholders' equity                           2,065,859                     (1,474,647)
                                                  -------------                   ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY           2,527,805                     $2,888,063
                                                  =============                   ============
</TABLE>


The accompanying notes are an integral part of these financial statements.
F-1

<PAGE>
<TABLE>
<CAPTION>


SONIC JET PERFORMANCE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
------------------------------------------------------------------------


                                           3 Months Ended September 30,  9 Months Ended September 30,
                                                    2001        2000           2001       2000
                                               (unaudited)  (unaudited)   (unaudited)(unaudited)
                                             -----------   -----------    ----------  ----------
<S>                                           <C>          <C>           <C>          <C>
SALES                                           $142,429     $135,876    $1,186,501    $1,102,315

COST OF SALES                                     99,027      117,538       927,663       937,340
                                            ------------   -----------    -----------   ----------

GROSS PROFIT                                      43,402       18,338       258,838       164,975

GENERAL AND ADMINISTRATIVE                       192,726      411,010       776,571     1,468,803
                                             ------------  -----------   ------------   ----------

INCOME (LOSS) FROM OPERATIONS                   (149,324)    (392,672)     (517,733)   (1,303,828)
                                             ------------  -----------   ------------   ----------

OTHER INCOME                                         412        3,801       172,257        13,471
OTHER EXPENSE                                       ---          ---           ---           ---
INTEREST INCOME                                    1,672          834         5,812         1,090
INTEREST EXPENSE                                  (3,972)    (471,770)      (17,772)   (1,888,003)
Inventory Write off                                             1,700                    (384,383)
                                             ------------  -----------   ------------  -----------
TOTAL OTHER INCOME (EXPENSE)                      (1,888)    (465,435)      160,297    (2,256,825)
                                             ------------  -----------   ------------- -----------

NET INCOME (LOSS)                              $(151,212)   $(858,107)   $ (357,436)  $(3,560,653)

BASIC & DILUTED EARNINGS(LOSS)                     (0.01)       (0.06)        (0.02)        (0.27)
PER SHARE

WEIGHTED-AVERAGE COMMON SHARE
USED IN COMPUTATION OF BASIC
AND DILUTED LOSS PER SHARE                    17,591,230   13,026,679    17,591,230    13,026,679

</TABLE>



The accompanying notes are an integral part of these financial statements
F-2


<PAGE>
<TABLE>
<CAPTION>


SONIC JET PERFORMANCE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 (UNAUDITED)
------------------------------------------------------------------------

                                                        Additional
                                                        Paid in                           Accumulated
                                                        Capital-                Shares   Comprehensive
                         Preferred Stock  Common Stock  Stock       Additional Committed Committed Accumu
                         ---------------- ------------  Warrant     paid-In    to be     Income    lated
                         Shares  Amount  Shares Amounts Outstanding Capital    issued    (loss)    deficit  Total
                         ---------------  -------------- ----------- --------- --------- ----------  -------- --------
<S>                     <C>     <C>        <C>        <C>        <C>         <C>         <C>       <C>     <C>          <C>
BALANCE
DEC 31, 2000             1,600  $1,500,000 13,024,767 $4,328,777 $1,024,627  $1,098,000  $143,872  $20,330 $(9,590,253) $(1,474,647)
Capital changes                                                       1,500       4,250                                       5,750
due to debt
financing (unaudited)
Net income (unaudited)                                                                                        (334,594)    (334,594)
                       --------  ---------- ---------- ----------  ---------  ----------- --------- -------  ----------- -----------
BALANCE
March 31, 2001           1,600  $1,500,000 13,024,767 $4,328,777 $1,026,127  $1,102,250  $143,872   20,330 $(9,924,847) $(1,803,491)
Issuance of
 common                 (1,600) (1,500,000) 5,543,169  7,644,438 (1,026,127) (1,102,250) (143,872)                        3,872,189
Stock (unaudited)
Cumulative Translation                                                                             (20,330)     20,330
Net income (unaudited)                                                                                         128,372      128,372
                       -------- ---------- ---------- ----------  ---------  ----------- --------- --------  ---------  ------------
Balance
June 30, 2001             --       --      18,567,936 11,973,215      --         --          --      --     (9,776,145)   2,197,070
Issuance of
 common                   --       --          16,000     20,000      --         --          --      --         --           20,000
Stock (unaudited)
Net income (unaudited)                                                                                        (151,212)    (151,212)
                       -------- ---------- ---------- ----------  ---------  ----------- --------- --------  ----------   ----------
                          --       --      18,583,936 11,993,215      --         --          --      --     (9,927,357)   2,065,858
                       -------- ---------- ---------- ----------  ---------  ----------- --------- -------- -----------   ----------
</TABLE>



The accompanying notes are an integral part of these financial statements.
F-3


<PAGE>
<TABLE>
<CAPTION>


SONIC JET PERFORMANCE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
------------------------------------------------------------------------
                                                         9 Months Ended September 30,
                                                               2001            2000
                                                         ------------   ------------
                                                         (unaudited)    (unaudited)
<S>                                                      <C>               <C>
CASH FLOWS FPOM OPERATING ACTIVITIES
Net  Income (Loss)                                       ($357,436)        ($3,560,654)
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities
Depreciation and amortization                               90,000             156,787
Interest related to beneficial conversion and warrants                       1,368,844
(Increase) decrease in
Inventories                                                187,984             325,304
Due from related parties                                    99,206              75,684
Accounts Receivables                                       (51,394)           (419,371)
Other Receivables                                           (4,876)
(105,686)
Other current assets                                       (11,839)             (5,080)
Restricted cash                                                               (200,000)
Prepaid Inventory                                                              163,757
Accounts Payable                                            36,914            (230,391)
Accrued Payroll taxes                                       (5,600)            (26,551)
Other accrued liabilities                                  (20,922)              8,587
Accrued Interest                                                               163,191
                                                        -------------       -----------
Net, cash provided by (used in) operating activities       (37,963)         (2,285,579)
                                                        -------------       -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment                           1,046
Purchase of other assets
Cost of re-organization                                                       (58,504)
                                                        -------------       -----------
Net cash used in investing activities                        1,046            (58,504)
                                                        -------------       -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank loan
Proceeds from convertible debt-related parties                              2,302,945
Proceeds from capitalized lease obligation                    (776)

                                                        -------------       -----------
Net Cash provided by financing activities                     (776)         2,302,945
                                                        -------------       -----------
Effects of exchange rate on cash flow information                0            (11,530)
Net (decrease) in cash                                     (37,693)           (52,668)
CASH BEGINNING OF PERIOD                                    40,129             80,557
                                                        -------------      ------------
CASH END OF PERIOD                                           2,436             27,889
                                                        -------------      ------------

Supplement disclosure of cash flow information
Interest paid                                               17,772              7,452
Income tax paid                                                800                800

SUPPLEMENT SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
During the nine months ended September 30, 2001, the Company issued 4,975,169
restricted shares of common stock valued at $5,922,461 under a settlement
agreement between the Company and lenders and employee of the Company.

</TABLE>


The accompanying notes are an integral part of these financial statements
F-4


<PAGE>


SONIC JET PERFORMANCE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000 (UNAUDITED)
------------------------------------------------------------------------------
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         Nature of Business
         ------------------

         Sonic Jet Performance, Inc. ("SJPI"), a Colorado corporation, and
         subsidiary (collectively, the "Company") are engaged in the design and
         production of 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 wholly owned subsidiary, Nanning Sonic Jet, LLC. All inter-company
         balances and transactions are eliminated in consolidation.

         Basis of Presentation
         ---------------------

         The accompanying unaudited, condensed financial statements have been
         prepared in conformity with generally accepted accounting principles
         for interim financial information and with the instructions to Form
         10-QSB and Article 10 of Regulation S-B. Accordingly, they do not
         include all of the information and footnotes required by generally
         accepted accounting principles for complete financial statements. In
         the opinion of management, all adjustments (which comprise only normal
         recurring accruals) necessary for a fair presentation have been
         included. Operating results for the nine months ended September 30,
         2001 are not necessarily indicative of the results that may be expected
         for the year ended December 31, 2001. For further information, refer to
         the financial statements and notes thereto for the year ended December
         31, 2000.

         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.

         Going Concern
         -------------

         The Company has received a report from its independent auditors that
         includes an explanatory paragraph concerning the Company's uncertainty
         to continue as a going concern. These consolidated financial statements
         contemplate the ability to continue as such and do not include any
         adjustments that might result from this uncertainty.


         Loss per Share
         --------------

         The Company utilizes SFAS No. 128, "Earnings per Share" Basic and
         diluted loss per share is computed by dividing loss available to common
         stockholders by the weighted-average number of common shares
         outstanding. Because the Company has incurred net losses, basic and
         diluted loss per share are the same.


F-5

<PAGE>



NOTE 2 - INVENTORIES

         Inventories at September 30, 2001 consisted of the following:
                                                             (un-audited)
                                                             ------------

                  Raw materials and supplies                 $         16,068
                  Work in process                                     297,895
                  Finished goods                                       72,952
                                                             ----------------
                      Total                                  $        386,917


NOTE 3 - CASH

         The Company maintains its cash balances at banks located in California.
         Deposits at the banks 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 September
         30, 2001, the uninsured portions of the balances held at the bank
         aggregated to $100,510 (un-audited).

NOTE 4 - PROPERTY AND EQUIPMENT

        Property and equipment at September 30, 2001 consisted of the following:
                                                                (un-audited)
                                                                ------------

                  Furniture and fixtures                            $ 13,613
                  Machinery and equipment                            250,903
                  Molds                                            1,528,359
                  Vehicles                                            52,792
                  Leasehold improvements                              32,933
                                                                    --------
                                                                   1,878,600
                  Less accumulated depreciation and amortization    (605,738)
                                                                    ---------

                      Total                                       $1,272,862

NOTE 5 - Other Assets

         Other assets included $200,510 in restricted cash maintained in a time
certificate deposit account.

NOTE 6 - CONVERSION OF DEBTS:  PREFERRED STOCK AND NOTES TO STOCKHOLDER

        1.     1,600 Preferred Stock issued & outstanding since 1998 in the name
               of JNC  Strategic  Fund,  Ltd. has been  converted to restrocted
               Common Stock on June 29, 2001 at the rate of 917 shares to 1
               preferred stock. Interest on Preferred Stock was converted to
               restricted Common Stock at the rate of $1.25 per Share.

        2.     Lawsuit filed by Michael  Attias for the amount of $1,300,000 was
               settled by issuing 600,000 restricted Common Stock.

        3.     Promissory  Notes for the  amount of  $600,000  payable to Sheikh
               Mohammed  AL  Rashid  has been  paid off by issue of restricted
               Common stock on June 9, 2001 at the rate of $1.25 per share.
               Interest on the above debt was settled by issue of restricted
               Common stock at $1.25 per share.

        4.     Promissory  Notes issued to JNC  Opportunity  Fund, Ltd. on loans
               borrowed  from time to time was converted to restricted Common
               Stock on June 29, 2001.  Interest on the above debts has been
               converted at restricted Common stock on June 29, 2001.


F-6

<PAGE>


NOTE 7 - COMMITMENTS AND CONTINGENCIES

Lease
-----

The Company leases its facility under an operating lease agreement. Future
minimum lease payments are as follows:

                                Year Ending
                                December 31,                 (unaudited)
                               ------------                  ------------
                                    2001                        81,000
                                    2002                        16,500
                                                              -----------
                                    TOTAL                      $97,500


NOTE 8 - SUBSEQUENT EVENTS

     Subsequent to September 30, 2001, Mr. Albert Mardikian  resigned as Interim
     CEO and  Director of the board on October 31,  2001.  Also Mr.  Scott Ervin
     resigned as Director  of the Board on November 7, 2001.  Resignations  have
     been accepted by Director Mr. Sheikh Mohammed AL Rashid.



F-7

<PAGE>

MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL AND RESULTS OF OPERATIONS FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2001

RESULTS OF OPERATIONS

COMPARISON  OF THE THREE AND NINE MONTHS ENDED  SEPTEMBER 30, 2001 VS. THE THREE
AND NINE MONTHS ENDED SEPTEMBER 30, 2000

           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,          NINE  MONTHS ENDED
                                SEPTEMBER 30,                SEPTEMBER 30,
                       2001           %     2000      %      2001        %      2000     %
<S>                    <C>       <C>     <C>       <C>     <C>         <C>   <C>        <C>
Sales                  $142,429   100.0  $135,876   100.0  $1,186,501  100.0 $1,102,315  100.0

Cost of sales            99,027    69.5   117,538    86.5     927,663   78.2    937,340   85.0

Gross profit (loss)      43,402    30.5    18,338    13.5     258,838   21.8    164,975   14.9

Selling, general &      192,726   135.3   411,010   302.5     776,571   65.4  1,468,803  133.2
administrative expense

Income/(Loss)from      (149,324) (104.8) (392,672) (289.0)   (517,733) (43.6)(1,303,828)(118.3)
Operations

Interest Income           1,672     1.2       834     0.6       5,812    0.5      1,090    0.1

Interest expenses        (3,972)   (2.8) (471,770) (347.2)    (17,772)  (1.5)(1,888,003)(171.3)
Inventory Write off                         1,700     1.2                      (384,383) (34.8)

Other Income                412      .3     3,801     2.8     172,257   14.5     13,471    1.2

Other expenses            ---       ---      ---      ---        ---     ---      ---      ---

Net Income/(Loss)      (151,212) (106.1) (858,107) (631.5)   (357,436) (30.1)(3,560,653)(323.0)

</TABLE>


NET SALES
Net sales for the 3 months ended September 30, 2001 increased by $6,553 or 4.8%
to $142,429 from $135,876 for 3 the months ended September 30, 2000 and for the
9 month ended September 30, 2000 increased by $84,186 or 7.6% to $1,186,501from
$1,102,315 for the 9 months ended September 30, 2000. Management attributes the
increase of sale of Vortex boats.

Sales of parts amounted to Dalian Sonic Jet, a joint venture partner of Sonic
Jet Performance, Inc. ("the Company") amounted to $zero in the 9 months ended
September 30, 2001 as compared to $106,000 in the 9 months ended September 30,
2000.

COST OF SALES Cost of Sales for the 3 months ended September 30, 2001 decreased
by $18,511 or 15.7% to $99,027 from $117,538 for the 3 months ended September
30, 2000 and for the 9 months ended September 30, 2001 increased by $9,677 or
1.0% to $927,663 from $937,340 for the 9 months ended September 30, 2000.
Improvement in the utilization of labor and sale of Fire Rescue Jets during the
third quarter.

GROSS PROFIT
Gross profit for the 3 months ended September 30, 2001 increased by $25,064 or
136.7% to $43,402 from $18,338 for the 3 months ended September 30, 2000 and for

<PAGE>

the 9 months ended September 30, 2001 increased by $93,862 or 56.9% to $258,838
from $164,976 for the 9 months ended September 30, 2000. Sales for the 9 months
ended September 30, 2001 includes the sale of fire rescue jets on which profit
margin is high.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling, general and administrative expenses for the 3 months ended September
30, 2001 decreased by $218,284 or 53.1% to $192,726 from $411,010 for the 3
months ended June 30, 2000 and for the 9 months ended September 30, 2001
decreased by $692,232 or 47.1% to $776,571 from $1,468,803 for the 9 months
ended September 30, 2000.

Insurance expenses for the 3 months ended September 30, 2001 decreased by $5,851
or 37.7% to $9,639 from $15,490 for the 3 months period ended September 30, 2000
and for the 9 months ended September 30, 2001 expenses decreased by $20,626 or
46.5% to $23,778 from $44,404 for the 9 months ended September 30, 2000. This is
due to discontinuance of some insurance coverage.

Travel expenses for the 3 months ended September 30, 2001 decreased by $4,531 to
Zero from $4,531 for the 3 months ended September 30, 2000 and for the 9 months
ended September 30, 2001 decreased by $33,973 or 95.7% to $1,500 from $35,473
for the 9 months ended September 30, 2000.

Salary expenses for the 3 months ended September 30, 2001 decreased by $53,518
or 38.5% to $85,553 from $139,071 for the 3 months period ended September 30,
2000 and for the 9 months ended September 30, 2001 expenses decreased by
$194,173 or 41.4% to $274,451 from $468,624 for the 9 months ended September 30,
2000.

Legal and Professional expenses for the 3 months ended September 30, 2001
increased by $12,550 or 143.1% to $21,320 from $8,770 for the 3 months period
ended September 30, 2000 and for the 9 months ended September 30, 2000 expenses
increased by $10,845 or 29.6% to $47,446 from $36,601 for the 9 months ended
September 30, 2000.

Commission on sales expenses for the 3 months ended September 30, 2001 decreased
by $9,684 to zero from $9,684 for the 3 months period ended September 30, 2000
and for the 9 months ended September 30, 2001 expenses decreased by $3,159 or
5.6% to $52,807 from $ 55,966 for the 9 months ended June 30, 2000.

Receivable from a related party and Sonic Marketing International, LLC were
written off during the 6 months ended June 30, 2000. Sonic Jet Nanning Jet ski
inventory which came back from China amounting to $385,082 were written off
during second quarter ending June 30, 2000. Florida operations were closed down
during the second quarter ending June 30, 2000. Loss incurred in the closing
down operation amounted to $93,555 was written off during the 9 months ended
September 30, 2000.

The majority of above cost increases during year 2000 were the direct result of
elimination of the Sonic Jet International, Inc. Company as the sales and
marketing agent. In addition, the company's closure of the Florida Manufacturing
Plant was also a large cost impact.

<PAGE>


NET INCOME (LOSS)

Net Income(Loss) for the 3 month ended September 30, 2001 decreased by $706,895
or 82.37 to ($151,212) as compared to a Income (Loss) of ($858,107) for the 3
months ended September 30, 2000 and net (loss) for the 9 months ended September
30, 2001 decreased by $3,203,217 or 89.9% to ($357,436) as compared to
($3,560,653) for the 9 the months ended September 30, 2000. This decrease in
loss is mainly attributable to decreased costs associated with assuming the
selling, general and administration expenses.

LIQUIDITY AND CAPITAL RESOURCES

The Company's principal sources of capital have been cash flow from its
operations, the sale of Series A Convertible Preferred Stock and loans on an
as-needed basis.

The Company has entered into an agreement with Bombardier Capital for financing
the Accounts Receivable of Sonic Jet Performance, Inc. Bombardier Capital has
agreed to finance Sonic Jet Performance, Inc. up to a maximum sum of $1,000,000.



<PAGE>


PART II. OTHER INFORMATION

Item 1.  Legal Proceedings.

        1.    The Company is a defendant  in a case  brought in Orange  County,
              California for alleged  breach of Company's  contract by Mr. Alan
              Weaver and Mr. Harry Yamada. The Company is vigorously  defending
              the case.

        2.    The Company is a Co-defendant in a wrongful death case in Orange
              County, California resulting in an accident involving a boat
              manufactured by the Company. The outcome of the verdict is
              uncertain and that the amount of loss cannot be estimated. In the
              event of a verdict or attachment in excess of any applicable
              insurance, the Company could be materially and adversely impacted.
              The Company is vigorously defending the case.

Item 2. Changes in Securities.

The following were issued 144D stock on 6- 29-2001:
                                      Amount         Common Stock
 1. JNC Opportunity Fund Ltd.       $3,089,699           2,471,759
 2. JNC Strategic Fund Ltd.          1,930,311           1,731,449
 3. Sheikh Mohammed AL Rashid          808,871             697,097
 4. MGS Grand Sport Inc.                20,375              16,300
 5. Albert Mardikian                    53,205              42,564
 6. Michael Attias                                         600,000
                                                   Settlement of Lawsuit



Item 3.   Defaults Upon Senior Securities.                      None.

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

Item 5.   Other Information.                                    None.

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

               (b) Reports on Form 8-K.                         None.




<PAGE>


                                   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: November 28, 2001                  SONIC JET PERFORMANCE, INC.


                                         By: /s/ Madhava Rao Mankal
                                          ------------------------------
                                            Name:  Madhava Rao Mankal
                                            Title: Chief Finance Officer