Pocket Ninjas (1997)
Somewhere in New Jersey, a group of masked rollerblading children "save the universe" by training to fight the evil Cobra Khan through a series of action-packed montages. Along the way they hypothesize some slapstick hijinks in a balloon factory, and save the day through a hypothetical Sonic Virtual Reality battle. A real treat! mask, new jersey, virtual reality, karate, dojo, balloon factory, rollerblades