-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CYLgOsFsPqQrlorFiyyMagVUVZnX2KTc5kaRUHlhiDPmxBAHNtBOoPL84SEhiU2H d5FBJHdV4hIRL3uuTgkwZA== 0000950133-98-000746.txt : 19980313 0000950133-98-000746.hdr.sgml : 19980313 ACCESSION NUMBER: 0000950133-98-000746 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980311 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980312 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMPLETE WELLNESS CENTERS INC CENTRAL INDEX KEY: 0001022828 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISC HEALTH & ALLIED SERVICES, NEC [8090] IRS NUMBER: 521910135 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: SEC FILE NUMBER: 000-22115 FILM NUMBER: 98564104 BUSINESS ADDRESS: STREET 1: 725 INDEPENDENCE AVE SE CITY: WASHINGTON STATE: DC ZIP: 20003 BUSINESS PHONE: 2025436800 MAIL ADDRESS: STREET 1: 725 INDEPENDENCE AVE SE CITY: WA STATE: DC ZIP: 20003 8-K/A 1 AMENDMENT ON FORM 8-K RE:COMPLETE WELLNESS CENTERS 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 AMENDMENT FORM 8-K/A CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report: March 11, 1998 Complete Wellness Centers, Inc. - -------------------------------------------------------------------------------- (Exact Name of Registrant as specified in its Charter) Delaware 0-22115 52-1910135 - -------------------------------------------------------------------------------- (State or other jurisdiction (Commission File No.) (I.R.S. Employer or corporation) Identification No.) 725 Independence Avenue, SE Washington, DC 20003 - -------------------------------------------------------------------------------- (Address of Principal (Zip Code) Executive Offices) Registrant's telephone number, including area code: (202) 543-6800 ---------------- N/A - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) ITEM 5. OTHER EVENTS 2 Item 5. Other Events On January 23, 1997, the registrant announced that it had completed the sale of $5 million principal amount of Senior Redeemable Preferred Stock through a private offering to two institutional accredited investors. The Preferred Stock bears a dividend of 8% per annum through December 31, 2000, provided that the dividend is currently paid on a quarterly basis, and if not paid the dividend accrues at 10% per annum through December 31, 2000. After December 31, 2000, the dividend on the Preferred Stock is 12% per annum. All shares of the Preferred Stock are mandatorily redeemable on the earlier of (a) December 31, 2000, and (b) the date of the completion by the registrant or any of its subsidiaries the gross proceeds of which aggregate in excess of $5 million. In addition, as part of the transaction, the registrant sold to the two institutional accredited investors 2,850,000 redeemable common stock purchase warrants. The warrants have a term of expiring January 12, 2005 and are exercisable into shares of the registrant's common stock at an exercise price of $1.75 per share. Up to 1,500,000 of the warrants may be redeemed back by the registrant if the registrant achieves certain income targets through March 31, 2001. The registrant intends to use the net proceeds of the offering for funding potential acquisitions, new medical center development, and other general corporate purposes. The Proforma Unaudited Consolidated Statement of Operations and Balance Sheet are included herein. ITEM 7. FINANCIAL STATEMENTS 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. COMPLETE WELLNESS CENTERS, INC. Date: February 9, 1998 By: /s/ E. Eugene Sharer E. Eugene Sharer President 3 Complete Wellness Centers, Inc. Proforma Consolidated Statement of Operations Unaudited
One Month Ended One Month Ended January 31, 1998 January 31, 1997 ------------------ ------------------ Operating Revenue Patient Revenue 734,240 270,626 Management Services Income 897,405 50,121 Weight Management Revenue 637,000 Other Income 32,350 ------------------ ------------------ 2,300,995 320,747 Cost of Revenue 212,960 Direct Expenses Salary and Consulting Costs 375,580 138,953 Management Fees 1,386,898 119,025 Rent 28,171 12,217 Advertising and Marketing 55,000 8,071 Bad Debt Expense 165,665 72,887 ------------------ ------------------ Total Direct Expenses 2,011,314 351,153 General and Administrative 557,627 124,926 Depreciation and Amortization 7,600 5,060 Operating Deficit (488,506) (160,392) Interest Expense 2,175 11,556 Interest Income 3,200 1,095 Minority Interest 11,000 ------------------ ------------------ Net Loss Before Income Taxes (476,481) (170,853) Income Taxes 1,333 ------------------ ------------------ Net Loss After Income Taxes (476,481) (172,186) ================== ================== Proforma Net Loss per Share Net Loss per Share and Common Equivalent Share (0.22) (0.24) Weighted Average Number of Common and Common Equivalent Shares Outstanding 2,160,000 714,967
4 Complete Wellness Centers, Inc. Proforma Consolidated Balance Sheet Unaudited
January 31, 1998 December 31, 1997 Cash and Cash Equivalents 3,430,000 245,000 Patient Receivables - Net 1,300,000 1,325,000 Management Fees Receivable 1,900,000 1,850,000 Inventory 225,000 345,000 Other Assets 200,000 125,000 Deposits 35,000 9,500 Deferred Tax Assets 47,000 47,000 ---------------- ----------------- Total Current Assets 7,137,000 3,946,500 Furniture and Equipment - Net 330,000 330,000 ---------------- ----------------- Total Assets 7,467,000 4,276,500 ================ ================= Current Liabilities Accounts Payble and Accrued Expenses 485,000 695,000 Accrued Management Fee 1,773,000 1,850,000 Other Current Liabilities 145,000 142,000 Deferred Tax Liability 59,500 59,500 Note Payable - 500,000 ---------------- ----------------- Total Current Liabilities 2,462,500 3,246,500 Minority Interest 35,000 29,000 Stockholders Equity Preferred Stock, .01 par value 2,000,000 Authorized 100,000 Issued and Outstanding 1/31/98, 1350 Outstanding 1/31/97 1,000 Common Stock, .0001665 par Value, 10,000,000 Authorized 2,160,000 Outstanding 1/31/98 714,967 Outstanding 1/31/97 317 317 Additional Capital 9,274,652 4,850,000 Accumulated Deficit (4,306,469) (3,849,317) ---------------- ----------------- Total Stockholders' Equity/(Deficit) 4,969,500 1,001,000 ---------------- ----------------- Total Liabilities and Stockholders' Equity/(Deficit) 7,467,000 4,276,500 ================ =================
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