8-K 1 doc1.txt SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) JULY 16, 2002 RETURN ASSURED INCORPORATED ---------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) DELAWARE 0-21679 13-3896069 ------------- ----------------------- -------------------- (State or other (Commission File Number) (IRS Employer jurisdiction of Identification No.) incorporation or organization) ---------------------------------------------------------------------------- 5962 La Place Court, Suite 230, Carlsbad, California 92008 (Address of principal executive offices)(Zip Code) (760) 438-7245 ----------------------------------------------------------------------- (Registrant's Telephone Number, Including Area Code) ---------------------------------------------------------------------------- (Former Address If Changed since Last Report.) ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANTS Rogoff & Co., P.C. was the independent certifying accountant for EliteJet, Inc. for the fiscal year ended December 31, 2001. Our acquisition of EliteJet, Inc. on April 26, 2002, is required to be accounted for as a reverse acquisition, with EliteJet, Inc. being treated as the acquiring company. The fiscal year of EliteJet, Inc., which is for years ending December 31, became our fiscal year as of April 26, 2002. On July 16, 2002, we terminated Rogoff & Co., P.C.'s appointment and subsequently engaged Goldstein Golub Kessler LLP, 1185 Avene of the Americans, Suite 500, New York, NY 10036, as our certifying accountant for the fiscal year ending December 31, 2002. The termination of Rogoff & Co., P.C. and appointment of Goldstein Golub Kessler, LLP was approved by our board of directors. The reports of Rogoff & Co., P.C. on EliteJet, Inc.'s financial statements for the fiscal year ended December 31, 2001, contained no adverse opinion or disclaimer of opinion, nor was either qualified or modified as to uncertainty, audit scope or accounting principle. In connection with the audits of the fiscal year ended December 31, 2001 and during the subsequent interim period preceding its dismissal, there were no disagreements between EliteJet, Inc. and Rogoff & Co., P.C. on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements, if not resolved to its satisfaction, would have caused Rogoff & Co., P.C. to make reference to the subject matter of the disagreement in connection with his reports. In connection with the audit of the fiscal year ended December 31, 2001, and during the subsequent interim period preceding its dismissal, Rogoff & Co., P.C. did not advise EliteJet, Inc. that: (A) internal controls necessary for EliteJet Inc. to develop reliable financial statements did not exist; (B) information had come to its attention that led it to no longer to be able to rely on EliteJet Inc. management's representations or made it unwilling to be associated with the financial statements prepared by management; (C) there was a need to expand significantly the scope of its audit, or that information had come to its attention during such time periods that if further investigated might: (i) materially impact the fairness or reliability of either a previously issued audit report or the underlying financial statements, or the financial statements issued or to be issued covering the fiscal periods subsequent to the date of the most recent financial statements covered by an audit report, or (ii) cause it to be unwilling to rely on management's representations or be associated with EliteJet's financial statements. 2 (D) information had come to its attention that it had concluded materially impacted the fairness or reliability of either (i) a previously issued audit report or the underlying financial statements, or (ii) the financial statements issued or to be issued covering the fiscal periods subsequent to the date of the most recent financial statements covered by an audit report. Prior to engaging Goldstein Golub Kessler, LLP, we did not consult with it regarding the application of accounting principles to a specific or completed transaction or the type of audit opinion that might be rendered on our financial statements. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. 7(c) Exhibits. 16 Letter from Rogoff & Company, P.C. regarding confirmation of our assertions on changes in Registrant's certifying accountant. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly cause this Report to be signed on its behalf by the undersigned hereunto duly authorized. RETURN ASSURED INCORPORATED. Dated: July 31, 2002 By: /s/ Scott Walker ----------------------- Scott Walker President 3 Exhibit 16 Securities and Exchange Commission 450 Fifth Street, N.W. Washington, D.C. 20549 July 31, 2002 Commissioners: We have read the statements made by Return Assured, Incorporated (copy attached), which we understand will be filed with the Commission, pursuant to Item 4 of Form 8-K, as part of the Company's Form 8-K report dated July 31, 2002. We agree with the statements concerning our Firm in such Form 8-K. Yours very truly, Rogoff & Company, P.C. New York, NY 4

March 31, December 31, 2002 2001 ---- ---- (Unaudited) ASSETS Current assets: Cash $ -- $ 341,899 Accounts receivable 42,116 220,053 Prepaid expenses 14,379 2,194 ----------- ----------- Total current assets 56,495 564,146 Other assets: Fixed assets 2,764,392 2,562,211 ----------- ----------- Total other assets 2,764,392 2,562,211 ----------- ----------- TOTAL ASSETS 2,820,887 3,126,357 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY (NET CAPITAL DEFICIENCY) Current liabilities: Cash overdraft 1,882 -- Accounts payable and accrued expenses 622,477 243,893 Current portion of long-term debt 242,967 242,967 Customer deposits 50,000 50,000 ----------- ----------- Total current liabilities 917,326 536,860 Other liabilities: Long-term debt, net of current portion 2,118,751 2,151,155 Commitments and contingencies -- -- ----------- ----------- Total other liabilities 2,118,751 2,151,155 ----------- ----------- Total liabilities 3,036,077 2,688,015 ----------- ----------- Minority interest in equity of subsidiary 292,927 299,258 Stockholders' equity (Deficiency): Common stock, $1.00 par value, 25,000 shares authorized, 500 shares issued and outstanding 500 500 Additional paid-in capital 2,114,382 2,114,382 Retained earning (deficit) (2,622,999) (1,975,798) ----------- ----------- Total stockholders' equity (net capital deficiency) (508,117) 139,084 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,820,887 $ 3,126,357 =========== ===========

Three-Month Three-Month Year Year Period Ended Period Ended Ended Ended March 31, March 31, December 31, December 31, 2002 2001 2001 2000 ---- ---- ---- ---- (Unaudited) (Unaudited) Operating income: Charter income $ 446,967 $ -- $ 1,328,980 $ -- Cost of sales 667,397 69,865 901,688 87,048 ----------- --------- ----------- ----------- Total operating income (220,430) (69,865) 427,292 (87,048) Operating expenses: Selling expenses 25,190 7,974 78,851 110,647 General and administrative expenses 139,951 41,064 258,791 174,236 Depreciation expense 217,415 196,308 785,232 581,261 ----------- --------- ----------- ----------- Total operating expenses 382,556 245,346 1,122,874 866,144 ----------- --------- ----------- ----------- Income (loss) from operations (602,956) (315,211) (695,582) (953,192) Other income and (expenses): Interest income -- -- -- 3,369 Other income and (expenses) (44,264) (42,530) (176,172) (154,512) ----------- --------- ----------- ----------- Total other income and (expenses) (44,264) (42,530) (176,172) (151,143) ----------- --------- ----------- ----------- Loss before minority interest $ (647,250) $(357,741) $ (871,754) $(1,104,336) Minority Interest in Loss of Subsidiary 49 -- 292 -- ----------- --------- ----------- ----------- Net Income (Loss) $ (647,201) $(357,741) $ (871,462) $(1,104,336) =========== ========= =========== =========== Weighted average shares outstanding 500 500 500 500 Earnings (loss) per share $ (1,294.40) $ (714.19) $ (1,742.92) $ (2,208.67)

Additional Retained Number Common Paid-in Earnings of Shares Stock Capital (Deficit) Total --------- ----- ------- --------- ----- BALANCE, JANUARY 1, 2000 -- $ -- $ -- $ -- $ -- Net proceeds from the issuance of common stock - Founder 500 500 2,114,382 -- 2,114,882 Net income (loss) for the year ended December 31, 2000 -- -- -- (1,104,336) (1,104,336) --- ---- ---------- ----------- ----------- BALANCE, DECEMBER 31, 2000 500 $500 $2,114,382 $(1,104,336) $ 1,010,546 === ==== ========== =========== =========== Net income (loss) for the year ended December 31, 2001 -- -- -- (871,462) (871,462) --- ---- ---------- ----------- ----------- BALANCE, DECEMBER 31, 2001 500 $500 $2,114,382 $(1,975,798) $ 139,084 === ==== ========== =========== =========== Net income (loss) for the three-month period ended March 31, 2002 (Unaudited) -- -- -- (647,201) (647,201) --- ---- ---------- ----------- ----------- BALANCE, MARCH 31, 2002 (UNAUDITED) 500 $500 $2,114,382 $(2,622,999) $ (508,117) === ==== ========== =========== ===========

Three-Month Three-Month Year Year Period Ended Period Ended Ended Ended March 31, March 31, December 31, December 31, 2002 2001 2001 2000 ---- ---- ---- ---- (Unaudited) (Unaudited) CASH FLOWS FROM: Operating activities: Net income (loss) $(647,250) $(357,741) $(871,754) $(1,104,336) Non-cash transaction - Professional services -- -- 25,000 -- Adjustments to reconcile net (loss) to net cash provided by (used in) operating activities: Depreciation (217,415) (196,308) (785,232) (581,261) Minority interest (99) -- (292) -- Increase (decrease) in: Accounts receivable 177,937 -- (220,053) -- Prepaid expenses (12,185) 4,500 7,500 (9.694) (Increase) decrease in: Cash overdraft 1,882 -- -- -- Accounts payable and accrued expenses 378,584 63,707 231,741 12,152 Customer deposits -- -- 50,000 -- --------- --------- --------- ----------- Net cash provided by (used in) operating activities 116,384 (93,226) 7,667 (520,617) Financing activities: Issuance of common stock -- -- -- 2,114,882 Sale of LLC Units -- -- 274,550 -- Aircraft acquisition loan -- -- -- 2,449,073 --------- --------- --------- ----------- Repayment of long-term debt (32,405) (4,290) (24,366) (30,585) --------- --------- --------- ----------- Net cash provided by (used in) financing activities $ (32,405) $ (4,290) $ 250,184 $ 4,533,369

Three-Month Three-Month Year Year Period Ended Period Ended Ended Ended March 31, March 31, December 31, December 31, 2002 2001 2001 2000 ---- ---- ---- ---- (Unaudited) (Unaudited) CASH FLOWS FROM: Investing activities: Acquisition of property, plant and equipment $(419,596) $ -- $ (54,188) $(3,874,517) Private placement expenses (6,282) -- -- -- --------- --------- --------- ----------- Net cash (used in) investing activities (425,878) -- (54,188) (3,874,517) --------- --------- --------- ----------- Net increase in cash and cash equivalents (341,899) (97,515) 203,664 138,235 Cash and cash equivalents at beginning of period 341,899 138,235 $ 138,235 -- --------- --------- --------- ----------- Cash and cash equivalents at end of period $ -- $ 40,720 $ 341,899 $ 138,235 ========= ========= ========= =========== Supplemental disclosures of cash flow information: Cash paid during the year for: Interest $ 44,494 $ 42,530 $ 176,238 $ 151,143 Income taxes $ -- $ -- $ -- $ -- Non cash transactions: Accounts payable for LLC Units $ 7,500 $ -- $ -- $ -- Consulting services for LLC Units $ -- $ -- $ 25,000 $ --

For the For the Period from Period from May 2, May 2, Three-Month 2001 2001 Period Ended (inception) to (inception) to March 31, December 31, March 31, 2002 2001 2002 ---- ---- ---- (Unaudited) (Unaudited) Operating income: Operating income $ -- $ -- $ -- ------- -------- -------- Total operating income -- -- -- Operating expenses: General and administrative expenses 2,094 13,852 15,946 ------- -------- -------- Total operating expenses 2,094 13,852 15,946 ------- -------- -------- Income (loss) from operations (2,094) (13,852) (15,946) Other income and (expenses): Other income and (expenses) (230) (66) (296) ------- -------- -------- Total other income and (expenses) (230) (66) (296) ------- -------- -------- Net income (loss) $(2,324) $(13,918) $(16,242) ======= ======== ======== Weighted average units outstanding 625 619 Earnings (loss) per unit $ (3.72) $ (22.48)

For the For the Period from Period from May 2, May 2, Three-Month 2001 2001 Period Ended (inception) to (inception) to March 31, December 31, March 31, 2002 2001 2002 ---- ---- ---- (Unaudited) (Unaudited) CASH FLOWS FROM: Operating activities: Net income (loss) $(2,324) $ (13,918) $ (16,242) Consulting services for Units -- 25,000 25,000 Adjustments to reconcile net (loss) to Net cash (used in) operating activities: Increase in accounts payable and accrued expenses 8,606 3,988 12594 ------- --------- --------- Net Cash provided by operating activities 6,282 15,070 21,352 ------- --------- --------- Financing activities: Issuance of LLC Units - founder -- 10,380 10,380 Issuance of LLC Units - private placement -- 300,000 300,000 Additional costs in connection with public offering (6,282) (25,450) (31,732) ------- --------- --------- Net Cash provided by financing activities (6,282) 284,930 278,648 ------- --------- --------- Investing activities: Loan to Elite Jet, Inc. -- (300,000) (300,000) ------- --------- --------- Net Cash provided by investing activities -- (300,000) (300,000) ------- --------- --------- Net increase in cash and cash equivalents $ -- $ -- $ --

For the For the Period from Period from September 7, September 7, Three-Month 2001 2001 Period Ended (inception) to (inception) to March 31, December 31, March 31, 2002 2001 2002 ---- ---- ---- (Unaudited) (Unaudited) Net increase in cash and cash equivalents $ -- $ -- $ -- Cash and cash equivalents at beginning of period -- -- -- ------ ------- ---- Cash and cash equivalents at end of period $ -- $ -- $ -- ====== ======= ==== Supplemental disclosures of cash flow information: Cash paid during the year for: Interest $ 230 $ 66 $296 Income taxes $ -- $ -- $ -- Non-cash transactions: Accounts payable and common stock $7,500 $ -- $ -- Consulting services 25,000

Historical ------------------------------ Return EliteJet Assured and and Subsidiaries Subsidiary Pro Forma ------------ ---------- --------- Revenue $ 10,851 $ 1,328,980 $ 1,339,831 Cost of Revenue 32,177 901,688 933,865 ----------- ----------- ----------- Margin (21,326) 427,292 405,966 Selling, general and administrative expenses 3,016,778 1,122,874 4,139,652 ----------- ----------- ----------- Operating loss (3,038,104) (695,582) (3,733,686) Interest expense 561,097 176,172 737,269 ----------- ----------- ----------- Loss from continuing operations before minority interest (3,599,201) (871,754) (4,470,955) Minority interest in loss of subsidiary 292 292 ----------- ----------- ----------- Loss from continuing operations (3,599,201) (871,462) (4,470,663) Discontinued Operations: Loss from operations of discontinued segments, including impairment of goodwill of $2,840,938 (2,472,155) (2,472,155) Loss from disposal of discontinued segments, including provision of $56,000 for operating losses during phase- out period (1,678,128) (1,678,128) ----------- ----------- ----------- Loss from discontinued operations (4,150,283) (4,150,283) ----------- ----------- ----------- Net Income (Loss) (7,749,484) (871,462) (8,620,946) Dividends on preferred stock (51,980) (51,980) ----------- ----------- ----------- Net loss attributable to common shareholders $(7,801,464) $ (871,462) $(8,672,926) =========== =========== =========== Net Loss per share, basic and diluted, continuing operations $ (17.33) (1,742.92) $ (0.62) =========== =========== =========== Net Loss per share, basic and diluted, discontinued operations $ (19.70) 0.00 $ (0.58) =========== =========== =========== Net Loss per share, basic and diluted $ (37.03) $ (1,742.92) $ (1.20) =========== =========== =========== Weighted Average number of shares outstanding 1 210,684 500 2 $ 7,210,684 =========== =========== ===========

Historical -------------------------- Return Assured Elite Jet Pro Forma --------- ----------- ----------- Revenue $ 446,967 $ 446,967 Cost of Revenue 667,397 667,397 --------- ---------- ----------- Margin (220,430) (220,430) General and administrative expenses $ 351,130 382,556 733,686 --------- ---------- ----------- Operating loss (351,130) (602,986) (954,116) Interest expense 24,954 44,264 69,218 --------- ---------- ----------- Loss before minority interest (376,084) (647,250) (1,023,334) Minority interest in loss of subsidiary 49 49 --------- ---------- ----------- Net loss (376,084) (647,201) (1,023,285) Dividends on preferred stock (9,441) (9,441) --------- ---------- ----------- Net loss attributable to common shareholders $(385,525) $ (647,201) $(1,032,726) ========= ========== =========== Net Loss per share, basic and diluted $ (1.37) $(1,294.40) $ (0.14) ========= ========== =========== Weighted Average number of shares outstanding 1 280,770 500 2 7,280,770 ========= ========== ===========

Historical ------------------------------- Return Assured and EliteJet Pro forma Subsidiaries and Subsidiary Adjustments Pro Forma ------------ -------------- ----------- --------- ASSETS Current Assets: Cash $ 886 $ 886 Cash in escrow 2,808,056 2,808,056 Accounts receivable $ 42,116 42,116 Prepaid expenses and other current assets 3,086 14,379 17,465 ------------ ----------- -------------- ----------- Total current assets 2,812,028 56,495 2,868,523 Goodwill 2 $ 2,875,662 2,875,662 Property and Equipment 2,764,392 2,764,392 ------------ ----------- -------------- ----------- Total Assets $ 2,812,028 $ 2,820,887 $ 2,875,662 $ 8,508,577 ============ =========== ============== =========== LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) Current Liabilities: Cash overdraft $ 1,882 $ 1,882 Accounts payable and accrued liabilities $ 1,500,477 622,477 2,122,954 Current portion of long-term debt 242,967 242,967 50,000 50,000 ------------ ----------- ----------- Total current liabilities 1,500,477 917,326 2,417,803 Long-term debt, net of current portion 2,118,751 2,118,751 ------------ ----------- ----------- Total Liabilities 1,500,477 3,036,077 4,536,554 ------------ ----------- ----------- Minority Interest 292,927 292,927 ------------ ----------- ----------- Redeemable Preferred Stock 3,828,873 3,828,873 ------------ ----------- ----------- Common Shareholders' Equity (Deficit): Common Stock 16,847 500 1,2 $ (10,067) 7,280 Additional paid-in capital 10,933,382 2,114,382 1,2 (10,582,325) 2,465,439 Accumulated other comprehensive income 503 503 Accumulated deficit (13,468,054) (2,622,999) 2 13,468,054 (2,622,999) ------------ ----------- -------------- ----------- Total Common Shareholders' Equity (Deficit) (2,517,322) (508,117) 2,875,662 (149,777) ------------ ----------- -------------- ----------- Total Liabilites and Common Shareholders' Equity (Deficit) $ 2,812,028 $ 2,820,887 $ 2,875,662 $ 8,508,577 ============ =========== ============== ===========

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