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  <TITLE>Prepared by R.R. Donnelley Financial -- Current Report on Form 8-K</TITLE>
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   <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <HR SIZE="4" NOSHADE COLOR="#000000" ALIGN="left"><DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></DIV>
  <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>Washington, D.C. 20549 </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <HR NOSHADE WIDTH="21%" COLOR="#000000"><DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT
  FACE="Times New Roman" SIZE="5"><B>FORM 8-K </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>CURRENT REPORT </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV
  ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>Pursuant to section 13 or 15(d) of the </B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>Securities Exchange Act of 1934 </B></FONT></DIV> <DIV><FONT
  SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Date of Report (Date of earliest event reported): April 9, 2002 </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <HR NOSHADE WIDTH="21%"
  COLOR="#000000"><DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>RAE Systems Inc. </B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Exact name of registrant as
  specified in its charter) </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center">
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  <TR>
  <TD VALIGN="bottom" WIDTH="31%" ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Delaware</B></FONT></DIV> </TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" WIDTH="31%" ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>000-26109</B></FONT></DIV> </TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" WIDTH="31%" ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>77-0588488</B></FONT></DIV> </TD> </TR>
  <TR>
  <TD VALIGN="top" WIDTH="33%" ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(State or other jurisdiction of incorporation)</B></FONT></DIV> </TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="top" WIDTH="33%" ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Commission File Number)</B></FONT></DIV> </TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="top" WIDTH="33%" ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(IRS Employer Identification No.)</B></FONT></DIV> </TD> </TR>
   </TABLE> </DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center">
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  <TD VALIGN="bottom" WIDTH="48%" ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>1339 Moffett Park Drive</B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Sunnyvale, California</B></FONT></DIV>
  <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Address of principal executive offices)</B></FONT></DIV> </TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" WIDTH="48%" ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>95008</B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Zip Code)</B></FONT></DIV> </TD> </TR>
   </TABLE> </DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>(408) 752-0723 </B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman"
  SIZE="1"><B>(Registrant&#146;s telephone number, including area code) </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Nettaxi.com </B></FONT></DIV> <DIV ALIGN="center"><FONT
  FACE="Times New Roman" SIZE="2"><B>1875 South Bascom Ave., No. 116 </B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Campbell, CA 95008 </B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman"
  SIZE="1"><B>(Former name or former address, if changed since last report) </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <HR SIZE="4" NOSHADE COLOR="#000000" ALIGN="left">
  
  <p Style='page-break-before:always'>
  <HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
   <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2"><B><I>Item 1.&nbsp;&nbsp;&nbsp;&nbsp;Change in Control of Registrant. </I></B></FONT></DIV> <DIV><FONT
  SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:27px"><FONT FACE="Times New Roman" SIZE="2">On April 9, 2002, immediately prior to the consummation of the merger transaction described in Item 2 below between Nettaxi.com, a Nevada corporation
  (&#147;Nettaxi&#148;) and RAE Systems Inc., a California corporation (&#147;RAE California&#148;), we effected a 5.67 for 1 reverse split of our common stock, were reincorporated under the laws of the state of Delaware and changed our name to RAE
  Systems Inc. Although the former Nettaxi was the surviving corporation in the merger transaction, the stockholders and management of the former RAE Systems acquired control of Nettaxi at the effective time of the merger. We have treated the merger
  transaction as a reverse merger for accounting purposes. As a result of the merger, shareholders of RAE California prior to the merger hold approximately 80% of the outstanding shares of common stock of the combined entity, and shareholders of
  Nettaxi prior to the merger hold approximately 18% of the combined entity. The combined entity will be headed by the former management and board of RAE California. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT
  FACE="Times New Roman" SIZE="2"><B><I>Item 2.&nbsp;&nbsp;&nbsp;&nbsp;Acquisition or Disposition of Assets. </I></B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:27px"><FONT FACE="Times New Roman" SIZE="2">On April 9,
  2002, pursuant to a Merger Agreement and Plan of Reorganization (the &#147;Merger Agreement&#148;) dated January 9, 2002 among RAE California, RAES Acquisition Corporation, a California corporation, and Nettaxi (formerly OTC BB: NTXY.OB), we
  effected a 5.67 for 1 reverse split of our common stock, were reincorporated under the laws of the state of Delaware under the name RAE Systems Inc. and merged with RAE California, with the combined entity being RAE Systems Inc. (OTC BB: RAEE.OB), a
  Delaware corporation (&#147;RAE Delaware&#148;). </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:27px"><FONT FACE="Times New Roman" SIZE="2">Pursuant to the merger described above, RAE Delaware issued shares of its
  common stock in exchange for shares of RAE California common stock outstanding immediately prior to the merger so that shareholders of RAE California prior to the merger hold approximately 80% of the outstanding shares of common stock of the
  combined entity, and shareholders of Nettaxi prior to the merger hold approximately 18% of the combined entity. Options to purchase RAE California common stock outstanding at the effective time of the merger were assumed by RAE Delaware and will
  continue to have the same terms and conditions that were applicable prior to the merger, except that (i) each RAE California stock option will be exercisable for shares of RAE Delaware common stock, and the number of shares of RAE Delaware issuable
  upon exercise of any assumed option will be determined by multiplying the applicable exchange ratio by the number of shares of RAE California common stock underlying the options and (ii) the per share exercise price of each assumed RAE California
  option will be determined by dividing the exercise price in effect prior to the merger by the applicable exchange ratio. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:27px"><FONT FACE="Times New Roman" SIZE="2">The
  preceding discussion is qualified in its entirety by the Merger Agreement, which is attached as Exhibit&nbsp;2.1 to this report and incorporated by reference herein. </FONT></DIV> <P></P>
   <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">2 </FONT></DIV>
  
  
  <p Style='page-break-before:always'>
  <HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
   <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2"><B><I>Item 7.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits. </I></B></FONT></DIV> <DIV><FONT
  SIZE="1">&nbsp;</FONT></DIV>
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  <TD WIDTH="015" VALIGN="top" ALIGN="left"><DIV><FONT FACE="Times New Roman" SIZE="2">(a)</FONT></DIV></TD>
  <TD WIDTH="012" VALIGN="top"><DIV>&nbsp;</DIV></TD>
  <TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2">Financial statements of business acquired. </FONT></DIV> </TD></TR></TABLE> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="margin-left:27px"><FONT FACE="Times New Roman"
  SIZE="2">The historical financial statements of RAE California have been previously filed on Nettaxi&#146;s proxy statement filed with the Securities and Exchange Commission on March 4, 2002. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
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  <TR>
  <TD WIDTH="015" VALIGN="top" ALIGN="left"><DIV><FONT FACE="Times New Roman" SIZE="2">(b)</FONT></DIV></TD>
  <TD WIDTH="011" VALIGN="top"><DIV>&nbsp;</DIV></TD>
  <TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2">Pro forma financial information. </FONT></DIV> </TD></TR></TABLE> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="margin-left:27px"><FONT FACE="Times New Roman"
  SIZE="2">The pro forma financial information have been previously filed on Nettaxi&#146;s proxy statement filed with the Securities and Exchange Commission on March 4, 2002. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
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  <TD WIDTH="015" VALIGN="top" ALIGN="left"><DIV><FONT FACE="Times New Roman" SIZE="2">(c)</FONT></DIV></TD>
  <TD WIDTH="012" VALIGN="top"><DIV>&nbsp;</DIV></TD>
  <TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2">Exhibits </FONT></DIV> </TD></TR></TABLE> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center">
  <TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0">
  
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  <TD VALIGN="top" ALIGN="right" WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2.1</FONT></DIV> </TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" WIDTH="95%"> <DIV><FONT FACE="Times New Roman" SIZE="2">Merger Agreement and Plan of Reorganization dated January 9, 2002 among RAE Systems Inc., a California corporation, RAES Acquisition Corporation, a California corporation,
  and Nettaxi.com, a Nevada corporation (1)</FONT></DIV> </TD> </TR>
   </TABLE> </DIV> <HR NOSHADE WIDTH="10%" COLOR="#000000" ALIGN="left">
  <TABLE CELLPADDING="0" CELLSPACING="0">
  <TR>
  <TD WIDTH="015" VALIGN="top" ALIGN="left"><DIV><FONT FACE="Times New Roman" SIZE="2">(1)</FONT></DIV></TD>
  <TD WIDTH="011" VALIGN="top"><DIV>&nbsp;</DIV></TD>
  <TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2">Incorporated by reference to the exhibit previously filed as an exhibit to Nettaxi&#146;s Current Report on Form&nbsp;8-K filed on January 10, 2002. </FONT></DIV>
  </TD></TR></TABLE> <P></P>
   <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">3 </FONT></DIV>
  
  
  <p Style='page-break-before:always'>
  <HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
   <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>SIGNATURES </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV
  STYLE="text-indent:27px"><FONT FACE="Times New Roman" SIZE="2">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 hereunto duly authorized.
  </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center">
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  <TD> <FONT SIZE="1">&nbsp;</FONT></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></TD>
  <TD VALIGN="top" WIDTH="48%"> <DIV><FONT FACE="Times New Roman" SIZE="2">RAE Systems Inc.</FONT></DIV> </TD> </TR>
  <TR>
  <TD HEIGHT="16"> </TD> </TR>
  <TR>
  <TD VALIGN="top" WIDTH="50%"> <DIV><FONT FACE="Times New Roman" SIZE="2">Date: April 24, 2002</FONT></DIV> </TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></TD>
  <TD VALIGN="top" WIDTH="50%"> <DIV STYLE="margin-left:13px; text-indent:-13px"><FONT FACE="Times New Roman"
  SIZE="2">By:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/&nbsp;&nbsp;&nbsp;&nbsp;J<SMALL>OSEPH</SMALL>
  N<SMALL>G</SMALL></FONT></DIV> <HR NOSHADE WIDTH="94%" COLOR="#000000" ALIGN="right"><DIV STYLE="margin-left:21px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Joseph Ng</FONT></DIV> <DIV STYLE="margin-left:21px" ALIGN="center"><FONT
  FACE="Times New Roman" SIZE="2">Vice President, Business Development</FONT></DIV> <DIV STYLE="margin-left:21px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">and Chief Financial Officer</FONT></DIV> </TD> </TR>
   </TABLE> </DIV> <P></P>
   <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">4 </FONT></DIV>
  
  
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   <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>EXHIBIT INDEX </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center">
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  <TD VALIGN="bottom" ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Exhibit</B></FONT></DIV> <HR SIZE="2" NOSHADE WIDTH="37" COLOR="#000000"></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" WIDTH="92%" ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Description</B></FONT></DIV> <HR SIZE="2" NOSHADE WIDTH="65" COLOR="#000000"></TD> </TR>
  <TR>
  <TD VALIGN="top" ALIGN="right" WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2.1</FONT></DIV> </TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" WIDTH="92%"> <DIV><FONT FACE="Times New Roman" SIZE="2">Merger Agreement and Plan of Reorganization dated January 9, 2002 among RAE Systems Inc., a California corporation, RAES Acquisition Corporation, a California corporation,
  and Nettaxi, a Delaware corporation (1)</FONT></DIV> </TD> </TR>
   </TABLE> </DIV> <HR NOSHADE WIDTH="10%" COLOR="#000000" ALIGN="left">
  <TABLE CELLPADDING="0" CELLSPACING="0">
  <TR>
  <TD WIDTH="013" VALIGN="top" ALIGN="left"><DIV><FONT FACE="Times New Roman" SIZE="2">(1)</FONT></DIV></TD>
  <TD WIDTH="006" VALIGN="top"><DIV>&nbsp;</DIV></TD>
  <TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2">Incorporated by reference to the exhibit previously filed as an exhibit to Nettaxi.com&#146;s Current Report on Form 8-K filed on January 10, 2002. </FONT></DIV>
  </TD></TR></TABLE>
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  <TD WIDTH="020" VALIGN="top" ALIGN="left"></TD></TR></TABLE>
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  <TD WIDTH="027" VALIGN="top" ALIGN="left"></TD></TR></TABLE>
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metadata_filer: {"company-data": {"conformed-name": "RAE SYSTEMS INC", "cik": "0001084876", "assigned-sic": "3829", "irs-number": "770588488", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-26109", "film-number": "02619412"}, "business-address": {"street1": "1339 MOFFETT PARK DRIVE", "city": "SUNNYVALE", "state": "CA", "zip": "95112", "phone": "408-752-0723"}, "former-company": {"former-conformed-name": "NETTAXI INC", "date-changed": "19990422"}}
text: Prepared by R.R. Donnelley Financial -- Current Report on Form 8-K
  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): April 9, 2002
  RAE Systems Inc.
  (Exact name of registrant as
  specified in its charter)
  Delaware
  000-26109
  77-0588488
  (State or other jurisdiction of incorporation)
  (Commission File Number)
  (IRS Employer Identification No.)
  1339 Moffett Park Drive
  Sunnyvale, California
  (Address of principal executive offices)
  95008
  (Zip Code)
  (408) 752-0723
  (Registrant's telephone number, including area code)
  Nettaxi.com
  1875 South Bascom Ave., No. 116
  Campbell, CA 95008
  (Former name or former address, if changed since last report)
  Item 1.    Change in Control of Registrant.
  On April 9, 2002, immediately prior to the consummation of the merger transaction described in Item 2 below between Nettaxi.com, a Nevada corporation
  ("Nettaxi") and RAE Systems Inc., a California corporation ("RAE California"), we effected a 5.67 for 1 reverse split of our common stock, were reincorporated under the laws of the state of Delaware and changed our name to RAE
  Systems Inc. Although the former Nettaxi was the surviving corporation in the merger transaction, the stockholders and management of the former RAE Systems acquired control of Nettaxi at the effective time of the merger. We have treated the merger
  transaction as a reverse merger for accounting purposes. As a result of the merger, shareholders of RAE California prior to the merger hold approximately 80% of the outstanding shares of common stock of the combined entity, and shareholders of
  Nettaxi prior to the merger hold approximately 18% of the combined entity. The combined entity will be headed by the former management and board of RAE California.
  Item 2.    Acquisition or Disposition of Assets.
  On April 9,
  2002, pursuant to a Merger Agreement and Plan of Reorganization (the "Merger Agreement") dated January 9, 2002 among RAE California, RAES Acquisition Corporation, a California corporation, and Nettaxi (formerly OTC BB: NTXY.OB), we
  effected a 5.67 for 1 reverse split of our common stock, were reincorporated under the laws of the state of Delaware under the name RAE Systems Inc. and merged with RAE California, with the combined entity being RAE Systems Inc. (OTC BB: RAEE.OB), a
  Delaware corporation ("RAE Delaware").
  Pursuant to the merger described above, RAE Delaware issued shares of its
  common stock in exchange for shares of RAE California common stock outstanding immediately prior to the merger so that shareholders of RAE California prior to the merger hold approximately 80% of the outstanding shares of common stock of the
  combined entity, and shareholders of Nettaxi prior to the merger hold approximately 18% of the combined entity. Options to purchase RAE California common stock outstanding at the effective time of the merger were assumed by RAE Delaware and will
  continue to have the same terms and conditions that were applicable prior to the merger, except that (i) each RAE California stock option will be exercisable for shares of RAE Delaware common stock, and the number of shares of RAE Delaware issuable
  upon exercise of any assumed option will be determined by multiplying the applicable exchange ratio by the number of shares of RAE California common stock underlying the options and (ii) the per share exercise price of each assumed RAE California
  option will be determined by dividing the exercise price in effect prior to the merger by the applicable exchange ratio.
  The
  preceding discussion is qualified in its entirety by the Merger Agreement, which is attached as Exhibit 2.1 to this report and incorporated by reference herein.
  2
  Item 7.    Financial Statements and Exhibits.
  (a)
  Financial statements of business acquired.
  The historical financial statements of RAE California have been previously filed on Nettaxi's proxy statement filed with the Securities and Exchange Commission on March 4, 2002.
  (b)
  Pro forma financial information.
  The pro forma financial information have been previously filed on Nettaxi's proxy statement filed with the Securities and Exchange Commission on March 4, 2002.
  (c)
  Exhibits
  2.1
  Merger Agreement and Plan of Reorganization dated January 9, 2002 among RAE Systems Inc., a California corporation, RAES Acquisition Corporation, a California corporation,
  and Nettaxi.com, a Nevada corporation (1)
  (1)
  Incorporated by reference to the exhibit previously filed as an exhibit to Nettaxi's Current Report on Form 8-K filed on January 10, 2002.
  3
  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 hereunto duly authorized.
  RAE Systems Inc.
  Date: April 24, 2002
  By:                               /s/    J
  OSEPH
  N
  G
  Joseph Ng
  Vice President, Business Development
  and Chief Financial Officer
  4
  EXHIBIT INDEX
  Exhibit
  Description
  2.1
  Merger Agreement and Plan of Reorganization dated January 9, 2002 among RAE Systems Inc., a California corporation, RAES Acquisition Corporation, a California corporation,
  and Nettaxi, a Delaware corporation (1)
  (1)
  Incorporated by reference to the exhibit previously filed as an exhibit to Nettaxi.com's Current Report on Form 8-K filed on January 10, 2002.