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<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-------------------------------------------
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): March 16, 1998
------------------
JAVA CENTRALE, INC.
--------------------------------------------------------------------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
California 34-0-23936 68-0268780
- --------------------------------------------------------------------------------
(STATE OF OTHER JURISDICTION (COMMISSION (IRS EMPLOYER
OF INCORPORATION) FILE NUMBER) IDENTIFICATION NO.)
1610 Arden Way, Suite 145, Sacramento, California 95815
- --------------------------------------------------------------------------------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE) (ZIP CODE)
Registrant's telephone number, including area code: (916) 568-2310
---------------
- --------------------------------------------------------------------------------
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT.)
<PAGE>
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
Effective December 31, 1997 Java Centrale, Inc. ("the Company") sold the
assets and liabilities associated with the Company's Java Centrale franchise
system. Pursuant to the terms of the Purchase Agreement dated January 9, 1998
between the Company and Massimo Da Milano, Inc. ("Massimo"), and closed on
January 16, 1998, the franchise agreements to 20 operating cafes and other
assets and liabilities associated with the franchise system were assigned and/or
transferred.
The consideration paid by Massimo for the purchase of the Java Centrale
franchise system consisted of 5,000,000 restricted Common Shares of Massimo and
$1,000,000 in future earn-out receivables. The earn-out receivable will be paid
from a combination of a portion of future royalties to be received by Massimo
from the Java Centrale franchise system and credits to the Company against
purchases from Massimo's wholesale bakery.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) FINANCIAL STATEMENTS
(a) Pro Forma Financial Information Pages F-1 to F-3
(b) EXHIBITS
Asset Purchase Agreement, dated January 9, 1998, between the Registrant and
Massimo Da Milano, Inc. for the sale of the assets of the Java Centrale
franchise system, (Filed as Exhibit No. 10.15 to the Registrant's
Pre-Effective Amendment No. 1 to Form SB-2 dated January 21, 1998 and by
this reference incorporated herein.)
<PAGE>
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 thereunto duly authorized.
JAVA CENTRALE, INC.
-------------------------------
(Registrant)
Date: March 16, 1998
By: /s/ JEFFREY W. DUDLEY
-----------------------------------------
Jeffrey W. Dudley
Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
<PAGE>
PRO FORMA UNAUDITED CONDENSED COMBINED
BALANCE SHEET
December 31, 1997
ASSETS
<TABLE>
<CAPTION>
Java Centrale, Java Centrale Pro Forma
Inc. Franchise
and Subsidiary System
(unaudited) (unaudited) Adjustments Combined
------------------ --------------- ------------- -----------
<S> <C> <C> <C> <C>
Current Assets:
Cash and cash equivalents $ 584,000 $ - $ - $ 584,000
Accounts receivable, net 521,000 (44,000) - 477,000
Inventories 280,000 (51,000) - 229,000
Notes receivable 382,000 (122,000) - 260,000
Prepaid expenses & other 151,000 (43,000) - 108,000
------------------ --------------- ------------- -----------
Total current assets 1,918,000 (260,000) 1,658,000
------------------ --------------- ------------- -----------
Notes receivable 372,000 - - 372,000
Property and equipment, net 2,383,000 (148,000) - 2,235,000
Investment in MDMI 400,000(a) 400,000
Goodwill and other assets 4,085,000 (53,000) - 4,032,000
------------------ --------------- ------------- -----------
$8,758,000 $(461,000) $400,000 $ 8,697,000
------------------ --------------- ------------- -----------
------------------ --------------- ------------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $1,291,000 $ (6,000) $ - $ 1,285,000
Accrued liabilities 886,000 15,000 - 901,000
Short term debt 410,000 - - 410,000
Current maturities, leases & debt 3,082,000 - - 3,082,000
------------------ --------------- ------------- -----------
Total current liabilities 5,669,000 - - 5,678,000
------------------ --------------- ------------- -----------
Deferred revenues 385,000 (350,000) - 35,000
Capital leases & long-term debt 81,000 - - 81,000
Other liabilities 62,000 - - 62,000
Stockholders' Equity
Common stock 19,720,000 - - 19,720,000
Net assets sold - (120,000) 120,000(a) -
Accumulated deficit (17,169,000) - 280,000(a) (16,879,000)
------------------ --------------- ------------- -----------
8,393,610 (120,000) 400,000 2,841,000
------------------ --------------- ------------- -----------
$16,181,760 $(461,000) $400,000 $ 8,697,000
------------------ --------------- ------------- -----------
------------------ --------------- ------------- -----------
</TABLE>
F-1
<PAGE>
PRO FORMA UNAUDITED CONDENSED COMBINED
STATEMENT OF OPERATIONS
For the Nine Months Ended December 31, 1997
<TABLE>
<CAPTION>
Java Centrale, Java Centrale Pro Forma
Inc. Franchise
and Subsidiary System
(unaudited) (unaudited) Adjustments Combined
------------------ --------------- ------------- -----------
<S> <C> <C> <C> <C>
Revenue $ 8,136,000 $ (442,000) $ - $7,694,000
------------------ --------------- ------------- -----------
Operating costs
Cost of goods sold 2,468,000 (23,000) - 2,445,000
Labor 2,408,000 - - 2,408,000
Direct and occupancy 1,497,000 - - 1,497,000
Depreciation 361,000 - - 361,000
------------------ --------------- ------------- -----------
Total cost of company sales 6,734,000 (23,000) - 6,711,000
------------------ --------------- ------------- -----------
General and administrative expenses 2,964,000 (121,000) - 2,843,000
Depreciation and amortization 310,000 - - 310,000
Bad debt expense 130,000 (13,000) - 117,000
Settlement expense 55,000 - - 55,000
Loss associated with cafe closures 634,000 (634,000) - -
Gain on sale of assets (280,000) - 280,000(a) -
------------------ --------------- ------------- -----------
Operating income (loss) (2,411,000) 349,000 (280,000) (2,342,000)
------------------ --------------- ------------- -----------
Other income (expense):
Loss on investment (547,000) - - (547,000)
Interest income (expense), net (549,000) 14,000 - (535,000)
Other income, net 66,000 (36,000) - 30,000
------------------ --------------- ------------- -----------
Net income (loss) $ (3,441,000) $ 327,000 $(280,000) $(3,394,000)
------------------ --------------- ------------- -----------
------------------ --------------- ------------- -----------
Net loss per weighted average
equivalent common share outstanding $ (2.64) $ (2.61)
------------------ -----------
------------------ -----------
Equivalent common shares outstanding 1,301,332 1,301,332
</TABLE>
F-2
<PAGE>
NOTES TO THE PRO FORMA CONDENSED COMBINED
STATEMENTS OF EARNINGS OF THE COMPANY
a) Sale of assets as adjusted:
<TABLE>
<S> <C>
Common Shares received 400,000
Liabilities assumed by buyer 350,000
-----------
Total selling price 750,000
Book value of assets disposed (470,000)
-----------
Gain on sale $ 280,000
-----------
-----------
</TABLE>
F-3
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