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) October 30, 2000
PLANET ZANETT, INC.
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(Exact name of registrant as specified in charter)
Delaware 0-27068 56-4389547
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
135 East 57th Street, 15th Floor, New York, NY 10022
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(Address of principle executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 759-5700
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(Former name or former address, if changed since last report.)
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<PAGE>
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(a) Financial Statements of Business Acquired
(1) Planet Zanett Corporate Incubator, Inc. Balance Sheet for September
30, 2000
(2) Planet Zanett Corporate Incubator, Inc. Statement of Operations and
Retained Earnings (Deficit) for Nine Months Ended September 30, 2000
(3) Planet Zanett Corporate Incubator, Inc. Statement of Cash Flows for
Nine Months Ended September 30, 2000
(4) Notes to Financial Statements
(b) Pro Forma Financial Statements of Business Acquired
(1) Pro Forma Condensed Balance Sheet for Planet Zanett, Inc.
(2) Pro Forma Condensed Income Statement for Planet Zanett, Inc.
(c) Pro Forma Financial Statements of Business Disposed of
(1) Pro Forma Condensed Balance Sheet for BAB, Inc.
(2) Pro Forma Condensed Income Statement for BAB, Inc.
2
<PAGE>
INDEX TO FINANCIAL STATEMENTS
Planet Zanett Corporate Incubator, Inc. Page No.
--------
Planet Zanett Corporate Incubator, Inc. Balance Sheet
for September 30, 2000..................................................F-1
Planet Zanett Corporate Incubator, Inc. Statement of Operations and
Retained Earnings (Deficit) for Nine Months Ended September 30, 2000....F-3
Planet Zanett Corporate Incubator, Inc. Statement of Cash Flows for
Nine Months Ended September 30, 2000....................................F-4
Unaudited Pro Forma Financial Information
Pro Forma Condensed Balance Sheet for Planet Zanett, Inc................F-6
Pro Forma Condensed Income Statement for Planet Zanett, Inc.............F-7
Pro Forma Condensed Balance Sheet for BAB, Inc..........................F-8
Pro Forma Condensed Income Statement for BAB, Inc.......................F-9
3
<PAGE>
PLANET ZANETT CORPORATE INCUBATOR, INC.
BALANCE SHEET
SEPTEMBER 30, 2000
ASSETS
Current Assets:
Cash $ 39,095
Subscriptions receivable - stockholders 3,985,000
-----------
Total Current Assets 4,024,095
-----------
Total Assets $ 4,024,095
===========
LIABILITIES & EQUITY
Current Liabilities:
Accrued expenses $ 85,164
-----------
Total Current Liabilities 85,164
-----------
Equity:
Common stock (par value $0.01/share) --
Paid in capital 4,200,075
Retained earnings (deficit) (261,144)
-----------
Total Equity 3,938,931
-----------
Total Liabilities & Equity $ 4,024,095
===========
F-1
<PAGE>
PLANET ZANETT CORPORATE INCUBATOR, INC.
(FORMERLY PLANET ZANETT CORPORATE INCUBATOR, LLC)
(FORMERLY WILLOW BAY ASSOCIATES, LLC)
FINANCIAL STATEMENTS
NINE MONTHS ENDED SEPTEMBER 30, 2000
F-2
<PAGE>
PLANET ZANETT CORPORATE INCUBATOR, INC.
STATEMENT OF OPERATIONS AND RETAINED EARNINGS (DEFICIT)
NINE MONTHS ENDED SEPTEMBER 30, 2000
Revenues $ --
Expenses:
Bank charges 255,483
---------
Net Loss (255,483)
Retained Earnings (Deficit) - January 1, 2000 (5,661)
---------
Retained Earnings (Deficit) - September 30, 2000 $(261,144)
=========
F-3
<PAGE>
PLANET ZANETT CORPORATE INCUBATOR, INC.
STATEMENT OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2000
Cash Flows from Operating Activities:
Net loss $(255,483)
Increase in accrued expenses 79,393
---------
Net Cash Used by Operating Activities (176,090)
---------
Cash Flows from Financing Activities:
Paid in capital 215,000
---------
Net Cash Provided by Financing Activities 215,000
---------
Net Increase in Cash 38,910
Cash, January 1, 2000 185
---------
Cash, September 30, 2000 $ 39,095
=========
Other Disclosures:
Interest paid $ --
=========
Income taxes paid $ --
=========
F-4
<PAGE>
PLANET ZANETT INC.
UNAUDITED PROFORMA FINANCIAL INFORMATION
F-5
<PAGE>
Planet Zanett, Inc.
PRO FORMA CONDENSED BALANCE SHEET
<TABLE>
<CAPTION>
BAB Holdings, Planet Zanett
Inc. Planet Zanett Pro Forma
Historical Historical As adjusted
As of As of Pro Forma As of
August 27, 2000 September 30, 2000 Adjustment August 27, 2000
--------------- ------------------ ---------- ---------------
<S> <C> <C> <C> <C>
ASSETS
Cash and cash equivalents ................... $ 321,677 $ 39,095 $ 2,263,323 $ 2,624,095
Receivables ................................. 1,846,801 (446,801) 1,400,000
Subscription Receivable - stockholders 3,985,000 (3,985,000) 0
Assets held for sale ........................ 1,025,911 (1,025,911) 0
Other current assets ........................ 957,761 (957,761) 0
------------ --------- ------------ -----------
Total current assets ........................ 4,152,150 4,024,095 (4,152,150) 4,024,095
------------ --------- ------------ -----------
Property and equipment, net of $1,851,990
accumulated depreciation ................. 1,387,918 (1,387,918) 0
Goodwill, net of accumulated amortization ... 2,458,941 (2,458,941) 0
Franchise contract rights, net of $345,380 0
accumulated amortization ................. 1,738,585 (1,738,585) 0
Other ....................................... 1,963,685 (1,963,685) 0
------------ --------- ------------ -----------
Total Assets ................................ 11,701,279 4,024,095 (11,701,279) 4,024,095
============ ========= ============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities .........................
Accounts payable and accrued expenses ....... 1,635,326 85,164 (1,635,326) 85,164
Current portion of long-term debt ........... 1,460,021 (1,460,021) 0
Other ....................................... 874,911 (874,911) 0
------------ --------- ------------ -----------
Total current liabilities ................... 3,970,258 85,164 (3,970,258) 85,164
------------ --------- ------------ -----------
Noncurrent liabilities
Deferred liabilities ........................ 651,886 (651,886) 0
Long-term debt, net of portion included 0
in current liabilities ................... 1,134,712 (1,134,712) 0
------------ --------- ------------ -----------
Total noncurrent liabilities ................ 1,786,598 0 (1,786,598) 0
------------ --------- ------------ -----------
Stockholders' Equity
Common stock ................................ 13,507,669 (13,507,669) 0
Additional paid-in capital .................. 1,187,696 4,200,075 (1,187,696) 4,200,075
Treasury stock at cost ...................... (43,963) 43,963 0
Accumulated deficit ......................... (8,706,979) (261,144) 8,706,979 (261,144)
------------ --------- ------------ -----------
5,944,423 3,938,931 (5,944,423) 3,938,931
------------ --------- ------------ -----------
Total Liabilities and Stockholders' Equity .. 11,701,279 4,024,095 (11,701,279) 4,024,095
============ ========= ============ ===========
</TABLE>
F-6
<PAGE>
Planet Zanett, Inc.
PRO FORMA CONDENSED INCOME STATEMENT
<TABLE>
<CAPTION>
Planet Zanett
Planet Zanet Pro Forma,
BAB Holdings, Inc. Corporate Incubator, Inc As adjusted
For the 9 months For the 9 months Pro Forma For the 9 months
Ended August 27, 2000 Ended September 30, 2000 Adjustment Ended August 27, 2000
--------------------- ------------------------ ---------- ---------------------
<S> <C> <C> <C> <C>
Revenues
Net sales by Company-owned stores ............. $ 6,664,932 $ 0 ($ 6,664,932) $ 0
Royalty fees from franchised stores ........... 2,285,968 0 (2,285,968) 0
Franchise and area development fees ........... 1,001,281 0 (1,001,281) 0
Licensing fees and other income ............... 312,978 0 (312,978) 0
------------ --------- ------------ ---------
Total Revenues ................................ 10,265,159 0 (10,265,159) 0
------------ --------- ------------ ---------
Operating Costs and Expenses
Food, beverage and paper costs ................ 2,031,782 0 (2,031,782) 0
Store payroll and other operating expenses .... 4,471,020 0 (4,471,020) 0
Selling, general and administrative expenses .. 9,670 0 9,670
Payroll-related expenses ...................... 1,503,388 20,580 (1,503,388) 20,580
Occupancy ..................................... 278,599 0 (278,599) 0
Advertising and promotion ..................... 204,318 0 (204,318) 0
Professional service fees ..................... 260,918 221,093 (260,918) 221,093
Franchise-related expenses .................... 46,260 0 (46,260) 0
Depreciation and amortization ................. 718,188 0 (718,188) 0
Travel ........................................ 103,303 4,140 (103,303) 4,140
Other ......................................... 599,001 (599,001) 0
------------ --------- ------------ ---------
Total Operating Costs and Expenses ............ 10,216,777 255,483 (10,216,777) 255,483
------------ --------- ------------ ---------
Loss before interest .......................... 48,382 (255,483) (48,382) (255,483)
Interest Expense .............................. (250,243) 0 250,243 0
Interest Income ............................... 50,797 0 (50,797) 0
------------ --------- ------------ ---------
Net Loss ...................................... (151,064) (255,483) 151,064 (255,483)
------------ --------- ------------ ---------
</TABLE>
F-7
<PAGE>
BAB, Inc.
PRO FORMA CONDENSED BALANCE SHEET
<TABLE>
<CAPTION>
Adjustment,
Dividend of Bab, Inc.
BAB Holdings, Inc. Pro Forma
Bab, Inc. Historical As adjusted
As of As of As of
August 27, 2000 August 27, 2000 August 27, 2000
--------------- --------------- ---------------
<S> <C> <C> <C>
ASSETS
Cash and cash equivalents ................... $ 0 $ 321,677 $ 321,677
Receivables ................................. 0 1,846,801 1,846,801
Subscription Receivable - stockholders ...... 0 0 0
Assets held for sale ........................ 0 1,025,911 1,025,911
Other current assets ........................ 0 957,761 957,761
---------- ------------ ------------
Total current assets ........................ 0 4,152,150 4,152,150
---------- ------------ ------------
Property and equipment, net of
accumulated depreciation ................. 0 1,387,918 1,387,918
Goodwill, net of accumulated amortization ... 0 2,458,941 2,458,941
Franchise contract rights, net of
accumulated amortization ................. 0 1,738,585 1,738,585
Other ....................................... 0 1,963,685 1,963,685
---------- ------------ ------------
Total Assets ................................ 0 11,701,279 11,701,279
========== ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses ....... 0 1,635,326 1,635,326
Current portion of long-term debt ........... 0 1,460,021 1,460,021
Other ....................................... 0 874,911 874,911
---------- ------------ ------------
Total current liabilities ................... 0 3,970,258 3,970,258
---------- ------------ ------------
Noncurrent liabilities
Deferred liabilities ........................ 0 651,886 651,886
Long-term debt, net of portion included
in current liabilities ................... 0 1,134,712 1,134,712
---------- ------------ ------------
Total noncurrent liabilities ................ 0 1,786,598 1,786,598
---------- ------------ ------------
Stockholders' Equity
Common stock ................................ 0 13,507,669 13,507,669
Additional paid-in capital .................. 0 1,187,696 1,187,696
Treasury stock at cost ...................... 0 (43,963) (43,963)
Accumulated deficit ......................... 0 (8,706,979) (8,706,979)
---------- ------------ ------------
0 5,944,423 5,944,423
---------- ------------ ------------
Total Liabilities and Stockholders' Equity .. 0 11,701,279 11,701,279
========== ============ ============
</TABLE>
F-8
<PAGE>
BAB , Inc.
PRO FORMA CONDENSED INCOME STATEMENT
<TABLE>
<CAPTION>
Adjustment,
Dividend of, BAB , Inc.
BAB Holdings, Inc. Pro Forma
BAB, Inc. Historical As adjusted
For the 9 months For the 9 months For the 9 months
Ended August 27, 2000 Ended August 27, 2000 Ended August 27, 2000
--------------------- --------------------- ---------------------
<S> <C> <C> <C>
Revenues
Net sales by Company-owned stores .............. $ 0 $ 6,664,932 $ 6,664,932
Royalty fees from franchised stores ............ 0 2,285,968 2,285,968
Franchise and area development fees ............ 0 1,001,281 1,001,281
Licensing fees and other income ................ 0 312,978 312,978
------------ ------------ ------------
Total Revenues ................................. 0 10,265,159 10,265,159
------------ ------------ ------------
Operating Costs and Expenses
Food, beverage and paper costs ................. 0 2,031,782 2,031,782
Store payroll and other operating expenses ..... 0 4,471,020 4,471,020
Selling, general and administrative expenses: .. 0
Payroll-related expenses ....................... 0 1,503,388 1,503,388
Occupancy ...................................... 0 278,599 278,599
Advertising and promotion ...................... 0 204,318 204,318
Professional service fees ...................... 0 260,918 260,918
Franchise-related expenses ..................... 0 46,260 46,260
Depreciation and amortization .................. 0 718,188 718,188
Travel ......................................... 0 103,303 103,303
Other .......................................... 0 599,001 599,001
------------ ------------ ------------
Total Operating Costs and Expenses ............. 0 10,216,777 10,216,777
------------ ------------ ------------
Loss before interest ........................... 0 48,382 48,382
Interest Expense ............................... 0 (250,243) (250,243)
Interest Income ................................ 0 50,797 50,797
------------ ------------ ------------
Net Loss ....................................... 0 (151,064) (151,064)
------------ ------------ ------------
</TABLE>
F-9
<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 hereunto duly authorized.
PLANET ZANETT, INC.
Date: January 16, 2001 By: /s/ David M.McCarthy
------------------------------
Name: David M. McCarthy
Title:Chief Executive Officer
4
