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<PAGE> 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.
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(Exact Name of Registrant as specified in its Charter)
Delaware 0-22115 52-1910135
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(State or other jurisdiction (Commission File No.) (I.R.S. Employer
or corporation) Identification No.)
725 Independence Avenue, SE
Washington, DC 20003
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(Address of Principal (Zip Code)
Executive Offices)
Registrant's telephone number, including area code: (202) 543-6800
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N/A
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(Former name or former address, if changed since last report)
ITEM 5. OTHER EVENTS
<PAGE> 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
<PAGE> 3
Complete Wellness Centers, Inc.
Proforma Consolidated Statement of Operations
Unaudited
<TABLE>
<CAPTION>
One Month Ended One Month Ended
January 31, 1998 January 31, 1997
------------------ ------------------
<S> <C> <C>
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
</TABLE>
<PAGE> 4
Complete Wellness Centers, Inc.
Proforma Consolidated Balance Sheet
Unaudited
<TABLE>
<CAPTION>
January 31, 1998 December 31, 1997
<S> <C> <C>
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
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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
================ =================
</TABLE>
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