Aero Performance Products Inc (fka AERP)

[Agent1107]

DD is very important when considering any stock
as an "investment". Take Aero for example...

Notes payable at December 31, 2008
consisted of the following:

1. Note payable to two individuals, past due, interest at 6%
$11,250

2. Convertible note to a fund, converted at a 30% discount
over the average market price, past due interest at 8%
$380,000

3. Note payable to a corporation, 8% past due
$138,831

4. Note payable to an individual, past due interest at 6%
$375,000

5. Convertible note to an individual with interest at 8%,
convertible at a 30% discount to market
$12,000

6. Note Payable to an individual with interest at 15%, past due
$1,017,439

Total $1,934,520

Accrued interest payable on the above at December 31, 2008 is $69,968.

During the quarter ended September 30, 2008 the company issued 116,000,000 shares of stock for a reduction in debt of $67,527. During the quarter ended December 31, 2008 the company issued 200,000,000 shares of restricted common stock for a reduction in debt of $70,000. The shares were issued were issued under Rule 144 of the Securities Act of 1933.

Included in Accounts Payable is an amount to one vendor which represents approximately 73.8% of the total amount owing.

Although the parent company Aero Performance Products, Inc. is not involved in any litigation, the Company’s subsidiary, TTR-HP, is a defendant in four lawsuits, three of which are claims arising out of the normal course of business which should be successfully resolved in the short term. The fourth lawsuit was brought by Nascar against TTR-HP for perceived breach of contract and failure to pay. This litigation is still in the early stages of discovery. While the eventual outcome of litigation is hard to predict, the company believes that if the Nascar complaint is not successfully disposed of it could pose a significant impairment on TTR’s ability to move forward with its business plans.

We Have Historically Lost Money and Losses May Continue in the Future

We have historically lost money. The loss for the 2008 fiscal year was $ 2,923,215 and future losses are likely to occur. Accordingly, we may experience significant liquidity and cash flow problems if we are not able to raise additional capital as needed and on acceptable terms. No assurances can be given we will be successful in reaching or maintaining profitable operations.

During the three months ended December 31, 2008, the Company issued a total of 200,000,000 shares of unregistered common stock under the following transactions:

75,000,000 shares were issued on the partial conversion of a note payable. The shares were issued under Rule 144 of the Securities Act of 1933. The subsequent resale of the stock resulted in a total of $20,000 reduction in the outstanding principle and interest owed on the obligation. -

125,000,000 shares were issued as partial settlement of debt owed to a third party. Under the terms of the settlement, the debt was reduced by $50,000. The shares were issued under Rule 144 of the Securities Act of 1933.

As of December 31, 2008, the Company was in default on its loan obligation to a former shareholder. The Company has reached an out of court settlement under which it is repaying the loan under structured monthly payments of $50,000. As of December 31, 2008, the loan obligation was $375,000.

http://www.secinfo.com/d16gRg.sz.htm