<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-KSB/A
[x] Annual Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 [Fee Required]
For the fiscal year ended December 31, 1998
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 [No Fee Required]
For the transition period from ____________________ to __________________
Commission file number 333-38697
---------
PHYSICAL SPA & FITNESS, INC.
- --------------------------------------------------------------------------------
(Exact name of small business issuer in its charter)
DELAWARE 13-1026995
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
12/F - 15/F Lee Theatre Plaza
99 Percival St., Causeway Bay
Hong Kong Not applicable
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 011 8522 572-8888
-------------------
Securities registered pursuant to Section 12(b) of the Act: None
----------------
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $.001 par value
------------------------------
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports) and (2) has been subject to such
filing requirements for the past 90 days.
YES NO X
----- -----
Check if there is no disclosure of delinquent filers in response to
Item 405 of Regulation S-B is not contained in this form, and no disclosure will
be contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in part III of this Form 10-K
or any amendment to this Form 10-K. [ ]
State issuer's revenues for its most recent fiscal year: $27,123,000
The aggregate market value of the voting stock held by non-affiliates
of the registrant as of June 18, 1999 was $300,000 based upon the average of the
bid and asked price of the Common Stock of $0.15 as of June 18, 1999.
The number of shares outstanding of the issuer's classes of Common
Stock as of June 1, 1999: 10,000,000
Common Stock, $.001 Par Value 10,000,000 shares
DOCUMENTS INCORPORATED BY REFERENCE: NONE
<PAGE>
ITEM 7. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The consolidated financial statements of the Company required to be
included in Item 7 are set forth in the Financial Statements Index.
Independent Auditors' Report of William D. Lindberg.........................F-1
Consolidated Balance Sheets as of December 31, 1996, 1997 and 1998..........F-2
Consolidated Statements of Operations for the years ended December 31,
1998, 1997 and 1996.........................................................F-4
Consolidated Statements of Stockholders' Equity for the years ended
December 31, 1998, 1997 and 1996............................................F-6
Consolidated Statements of Cash Flows for the years ended December 31,
1998, 1997 and 1996.........................................................F-8
Notes to Consolidated Financial Statements..................................F-11
<PAGE>
PHYSICAL SPA & FITNESS INC. AND SUBSIDIARIES
=============================================
AUDITED CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 1997 AND DECEMBER 31, 1998
AND
AUDITED CONSOLIDATED STATEMENTS OF INCOME
CASH FLOWS AND CHANGES IN SHAREHOLDER'S EQUITY
FOR THE YEARS ENDED DECEMBER 31, 1996, 1997 AND 1998
TOGETHER WITH AUDITORS' REPORT
<PAGE>
PHYSICAL SPA & FITNESS INC. AND SUBSIDIARIES
--------------------------------------------
AUDITED CONSOLIDATED STATEMENTS OF
----------------------------------
CHANGES IN SHAREHOLDERS' EQUITY
-------------------------------
FOR THE YEARS ENDED DECEMBER 31, 1996, 1997 AND 1998
----------------------------------------------------
(Amounts in thousands, except number of shares)
<TABLE>
<CAPTION>
Cumulative
Retained Translations
Common Stock Common Stock Earnings Adjustments TOTAL
------------ ------------ ------------ ------------ ------------
Number HK$ HK$ HK$ HK$
<S> <C> <C> <C> <C> <C>
BALANCE AT
JANUARY 1, 1996 10,000,000 78 5,031 (37) 5,072
Net income - - 21,111 - 21,111
Translation adjustment - - - 109 109
------------ ------------ ------------ ------------ ------------
BALANCE AT
DECEMBER 31, 1996 10,000,000 78 26,142 72 26,292
Net income - - 18,466 - 18,466
Translation adjustment - - - 59 59
------------ ------------ ------------ ------------ ------------
BALANCE AT
DECEMBER 31, 1997 10,000,000 78 44,608 131 44,817
Net income - - 17,342 - 17,342
Translation adjustment - - - (15) (15)
------------ ------------ ------------ ------------ ------------
BALANCE AT
DECEMBER 31, 1998 10,000,000 78 61,950 116 62,144
============ ============ ============ ============ ============
</TABLE>
F-6
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized on July 21, 1999.
PHYSICAL SPA & FITNESS, INC.
By: /s/ Ngai Keung Luk
------------------------------------------
Ngai Keung Luk,
Chairman and Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.
/s/ Ngai Keung Luk Chairman and Chief Executive Officer Date: 7/21/99
- ------------------------ (principal executive officer)
Ngai Keung Luk
/s/ Jill Bodnar President and Director Date: 7/21/99
- ------------------------ (principal executive officer)
Jill Bodnar
/s/ Robert Chui Chief Financial Officer and Director Date: 7/21/99
- ------------------------ (Principal accounting and financial
Robert Chui officer)
/s/ Darrie Lam Executive Vice President, Secretary Date: 7/21/99
- ------------------------ and Director
Darrie Lam
/s/ Yuk Wah Ho Executive Vice President and Director Date: 7/21/99
- ------------------------
Yuk Wah Ho
/s/ Yat Ming Lam Director Date: 7/21/99
- ------------------------
Yat Ming Lam
/s/ Allan Wah Chung Li Director Date: 7/21/99
- ------------------------
Allan Wah Chung Li
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<CASH> 252
<SECURITIES> 0
<RECEIVABLES> 1235
<ALLOWANCES> 0
<INVENTORY> 519
<CURRENT-ASSETS> 6059
<PP&E> 13787
<DEPRECIATION> 0
<TOTAL-ASSETS> 22347
<CURRENT-LIABILITIES> 12504
<BONDS> 0
0
0
<COMMON> 10
<OTHER-SE> 5773
<TOTAL-LIABILITY-AND-EQUITY> 22347
<SALES> 19220
<TOTAL-REVENUES> 19220
<CGS> 0
<TOTAL-COSTS> 15448
<OTHER-EXPENSES> (282)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 536
<INCOME-PRETAX> 3518
<INCOME-TAX> 899
<INCOME-CONTINUING> 2619
<DISCONTINUED> 0
<EXTRAORDINARY> 236
<CHANGES> 0
<NET-INCOME> 2383
<EPS-BASIC> .24
<EPS-DILUTED> .24
</TABLE>
