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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
(AMENDMENT NO. 1)
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 28, 1999
FRAGRANCENET.COM, INC.
(F/K/A NATIONAL CAPITAL MANAGEMENT CORPORATION)
(Exact name of Registrant as specified in its Charter)
DELAWARE 0-16819 94-3054267
(State or other Jurisdiction) (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
2070 DEER PARK AVENUE
DEER PARK, NEW YORK 11729
(Address of principal executive offices)
Registrant's telephone number, including area code: (516) 242-3205
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The undersigned registrant ("Registrant") hereby amends Item 7, section (b), of
its Current Report on Form 8-K reporting the merger of FAC, Inc., a wholly owned
subsidiary of the Registrant, with and into Telescents, Inc. on July 28, 1999 to
include the pro forma financial information as set forth herein.
Item 7. Financial Statements and Exhibits.
(b) Pro Forma Financial Information
The following pro forma financial information required pursuant to Article 11 of
Regulation S-X is filed with this amendment to the Registrant's Form 8-K which
was previously filed on August 7, 1999.
The following pro forma unaudited consolidated financial statements reflect the
reverse acquisition of TeleScents, Inc. ("TeleScents") by FragranceNet.com, Inc.
("FragranceNet.com"). The transaction is accounted for as a reverse acquisition
with TeleScents as the accounting acquirer, as the shareholders of TeleScents
gain voting control of FragranceNet.com pursuant to the transaction. In
addition, as the only asset of FragranceNet.com at the time of the transaction
is cash, the reverse acquisition is accounted for as a recapitalization of
TeleScents. After accounting for dividends to pre-transaction holders of common
stock of FragranceNet.com and payment of liabilities, if any, $500,000 of cash
will remain in FragranceNet.com.
The pro forma balance sheet gives effect to the above transaction as if it had
occurred on June 30, 1999 and the pro forma statements of operations give effect
to the transaction as if it had occurred at the beginning of each of the
respective periods. The unaudited pro forma financial statements are not
necessarily indicative of what the actual financial position and results of
operations would have been had the transaction occurred on the dates indicated
above, nor do they represent future financial position or results of operations.
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FragranceNet.com
Pro Forma Balance Sheet
June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Pro Forma
FragranceNet.com TeleScents Adjustments Combined
<S> <C> <C> <C> <C>
ASSETS
Current Assets:
Cash 2,106,022 84,500 (1) (1,606,022) 584,500
Inventory - 6,500 6,500
Prepaid expenses - 396 396
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Total Current Assets 2,106,022 91,396 (1,606,022) 591,396
Property and Equipment, net - 25,938 25,938
Intangible Asset, net - 7,250 7,250
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Total Assets 2,106,022 124,584 (1,606,022) 624,584
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LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Accounts payable and accrued expenses 34,624 164,655 (1) (34,624) 164,655
Loans payable - stockholders 25,000 25,000
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Total Liabilities 34,624 189,655 (34,624) 189,655
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Stockholders' Deficit
Preferred Stock, $0.01 par value,
3,000,000 shares authorized,
1,029,574 issued and outstanding (pro forma) - - (2) 10,295 10,295
Common Stock, $0.01 par value, -
6,666,666 shares authorized, 1,813,056 shares issued
1,673,190 outstanding
6,713,056 shares issued, 6,573,190 outstanding
(pro forma) 16,732 100,000 (2) (51,000) 65,732
Additional Paid in Capital 23,618,139 - (1) (1,571,398) 698,190
(2) (21,348,551)
Treasury Stock (174,217) - (174,217)
Accumulated deficit (21,389,256) (165,071) (2) 21,389,256 (165,071)
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Total Stockholders' Equity (Deficit) 2,071,398 (65,071) (2) (1,571,398) 434,929
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Total Liabilities and Stockholders' Deficit 2,106,022 124,584 (1,606,022) 624,584
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</TABLE>
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FragranceNet.com
Pro Forma Statement of Operations
Quarter ended June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Pro Forma
FragranceNet.com TeleScents Adjustments Combined
<S> <C> <C> <C> <C>
Net Sales - 383,611 383,611
Cost of Goods Sold - 259,855 259,855
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Gross Profit - 123,756 123,756
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Operating Expenses:
Selling, general and administrative 301,745 189,668 (3) (301,745) 189,668
Depreciation and amortization - 3,151 3,151
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Total Operating Expenses 301,745 192,819 (301,745) 192,819
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Net Loss From Operations (301,745) (69,063) (301,745) (69,063)
Interest and Other Income (Expense) 17,638 (292) (4) (13,450) 3,896
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Net Loss from Continuing Operations (284,107) (69,355) (315,195) (65,167)
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Basic and Diluted Loss per Share (0.004)
</TABLE>
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FragranceNet.com
Pro Forma Statement of Operations
12-month period
(Unaudited)
<TABLE>
<CAPTION>
Pro Forma
FragranceNet.com TeleScents Adjustments Combined
(12 months ended (12 months ended
12/31/98) 3/31/99)
<S> <C> <C> <C> <C>
Net Sales - 985,982 985,982
Cost of Goods Sold - 644,665 644,665
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Gross Profit - 341,317 341,317
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Operating Expenses:
Selling, general and administrative 643,446 416,846 (3) (643,446) 416,846
Depreciation and amortization - 8,674 8,674
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Total Operating Expenses 643,446 425,520 (643,446) 425,520
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Net Loss From Operations (643,446) (84,203) (643,446) (84,203)
Interest and Other Income (Expense) 207,820 (403) (4) (165,000) 42,417
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Net Loss from Continuing Operations (435,626) (84,606) (808,446) (41,786)
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Basic and Diluted Loss per Share (0.002)
</TABLE>
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Notes to the Pro Forma Financial Information
(1) Reflects the reduction of FragranceNet.com's cash to $500,000 that will
remain in the combined company. The remainder of FragranceNet.com's cash
balance is being utilized to satisfy any obligations of FragranceNet.com,
with dividends being declared for holders of common shares on July 20,
1999 for the excess of such cash over the liabilities.
(2) Reflects the reverse acquisition of TeleScents by FragranceNet.com with
TeleScents as the acquirer for accounting purposes.
(3) To eliminate corporate expenses related to discontinued operations.
(4) To reduce interest income to reflect the cash balance retained by the
combined company.
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SIGNATURE
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.
FRAGRANCENET.COM, INC.
Date: October 12, 1999
By: /s/ Jason S. Apfel
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Jason S. Apfel
President and Chief Executive Officer
