UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest reported): April 5, 2010

 

WELLQUEST MEDICAL & WELLNESS CORPORATION

(Exact name of registrant as specified in charter)

 

 

Oklahoma
(State or other jurisdiction
of incorporation)

333-149260
(Commission
File Number)

20-1842879
(IRS Employer
Identification No.)

 

3400 SE Macy Rd, #18, Bentonville, Arkansas    72712

(Address of principal executive offices)            (Zip Code)

Registrant’s telephone number, including area code: (479) 845-0880

 

Copies to:

Gregory Sichenzia, Esq.

James M. Turner, Esq.

Sichenzia Ross Friedman Ference LLP

61 Broadway

New York, New York 10006

Phone: (212) 930-9700

Fax: (212) 930-9725

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 



ITEM 2.02

Results of Operations and Financial Condition

 

On April 5, 2010, the Company announced its operating results for the fiscal year ended December 31, 2009. A copy of the press release that discusses this matter is filed as Exhibit 99.1 to, and incorporated by reference in, this report. The information in this Current Report is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, except as shall be expressly set forth by specific reference in any such filing.

 

ITEM 9.01

Financial Statements and Exhibits.

 

(d)

Exhibits.

 

99.1     Press Release, dated April 5, 2010, issued by WellQuest Medical & Wellness Corporation

 

 

 

2

 



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.

 

 

WELLQUEST MEDICAL & WELLNESS CORPORATION

 

 

Dated: April 5, 2010

BY:

/s/ GREG PRIMM

 

 

Greg Primm

Chief Financial Officer

 

 

 

 

 

3

 


Exhibit 99.1

 

WellQuest Announces Record Revenues of $3.8 Million for Fiscal 2009

 

Revenue growth driven by record number of client visits to medical clinic

 

Fifth consecutive quarter of revenue growth

Bentonville, Arkansas, April 5, 2010 – WellQuest Medical & Wellness Corporation (the “Company” or “WellQuest”) (Pink Sheets: WEQL ), reported record revenues of $3,823,994 for the fiscal year ended December 31, 2009. This marks a 15% increase of $491,561 over fiscal 2008 revenues of $3,332,433. Fiscal 2009 fourth quarter revenues of $1,009,414 were a historical record for the Company, marking the 5 th consecutive quarter of revenue growth, with a 7% increase over third quarter fiscal 2009 revenues of $944,123. Growth was fueled by a record 36,958 client visits, up 25% in 2009 fiscal year over 29,579 client visits in fiscal 2008.

As reported in the Company’s 2009 annual report, WellQuest’s medical clinic and medical spa segments generated $554,312 in operating income for the twelve months ended December 31, 2009, before general corporate expenses of $595,473 and interest expense of $224,136. On a consolidated basis, WellQuest had a net loss of $(262,797), or $(0.01) per share for the fiscal 2009.

“The success of our Bentonville facility substantiates our goal to replicate our model in numerous locations across the country. On a stand-alone basis, our flagship location was profitable in 2009. This is a result of the market’s positive response to our customer-focused medical concept: an upscale environment where our clients receive convenient medical care, integrative approaches to treatment, wellness and prevention through counseling and products, and advanced skin care and aesthetic services. This integration of environment and service results in a comfortable and trusted location to meet a family’s primary healthcare needs. Our approach to healthcare is based on attention to more than just treating sickness. Disease prevention, weight-loss, nutritional supplements and aesthetics address the broader spectrum of health concerns for more of today’s families and health conscious businesses,” stated WellQuest President Steve Swift.

After four years of operation, 75% of WellQuest’s visits in the medical clinic are repeat clients, indicating high levels of customer satisfaction. Additionally, 25% of medical visits throughout 2009 were new customer visits showing continued growth in the Company’s service area. The Company’s revenues have consistently increased over the past four years with fiscal 2006 revenues of $1,585,543, fiscal 2007 revenues were $2,393,453, fiscal 2008 revenues of $3,332,433, and fiscal 2009 revenues of $3,823,994.

WellQuest is about the “Quest for Wellness”, which is a journey that WellQuest takes with its customers. The Company’s aim is to make a positive difference in the health and lives of its staff, its clients and its community.

WellQuest is pursuing a goal to replicate its positive integrative medical experience by opening branded WellQuest facilities in other metropolitan areas of the U.S. The Company believes families and businesses are seeking options in the U.S. where annual sick care costs exceed $2.5 trillion, 16.7% of GDP. WellQuest is a relevant option toward treatment, prevention and wellness. The Company’s business is aimed at the evolving healthcare market which includes a $500 billion physician services sector, an $86 billion nutraceutical sector, a $12 billion cosmeceutical sector, and a $12.8 billion spa/medical spa sector. These sectors have traditionally been segregated. WellQuest brings them together in a way that meaningfully serves its customers.

About WellQuest Medical & Wellness Corporation

WellQuest offers its innovative concept in healthcare delivery by integrating conventional and complementary physician medicine with wellness, and aesthetic services in one center, creating an effective environment for the pursuit and



maintenance of a healthy life. WellQuest’s unique model for healthcare helps customers get well, stay well, and look well. Currently operating in Bentonville, Arkansas, WellQuest seeks to open additional locations in the U.S.

Investor and Media Contact:

Dilek Mir

(310) 591-5619

dmir@corporateprofile.com

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company’s ability to obtain the necessary financing to continue and expand operations, to market its products and services in new markets and to offer healthcare services at competitive pricing, anticipated revenue from client visits; general economic conditions and other factors detailed from time to time in the Company’s filings with the United States Securities and Exchange Commission and other regulatory authorities. These statements include, without limitation, statements regarding our ability to prepare the Company for growth; the Company’s planned expansions, and predictions and guidance relating to the Company’s future financial performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 



WELLQUEST MEDICAL & WELLNESS CORPORATION

Consolidated Balance Sheets

December 31, 2009 and 2008

        2009
  
2008
Assets
                                     
Current assets:
                                       
Cash
              $ 49,700          $ 103,265   
Accounts receivable, less allowances of $245,388 and $235,348 at December 31, 2009 and 2008, respectively
                 294,246             293,363   
Other current assets
                 70,777             50,737   
Total current assets
                 414,723             447,365   
Property and equipment, net
                 279,967             387,125   
Deferred financing costs, net of accumulated amortization of $27,775 and $0 at December 31, 2009 and 2008, respectively
                 83,325                
 
                                     
 
              $ 778,015          $ 834,490   
 
                                     
Liabilities and Stockholders’ Deficit
                                      
Current liabilities:
                                       
Line of credit
              $ 167,500          $ 202,494   
Accounts payable
                 309,778             293,312   
Accrued liabilities
                 155,783             232,034   
Due to physicians and related parties
                 598,230             521,118   
Note payable to related party
                 40,000             349,608   
Current maturities of long-term debt
                 408,920             517,324   
Current obligations under capital leases
                 28,155             23,902   
Current maturities of subordinated debentures payable to stockholders, net of unamortized discount of $0 and $17,093 at December 31, 2009 and 2008, respectively
                 493,497             523,409   
Total current liabilities
                 2,201,863             2,663,201   
Long-term obligations under capital leases, less current portion
                 90,492             118,646   
Subordinated debentures payable to stockholders, less current maturities
                 443,123                
Total liabilities
                 2,735,478             2,781,847   
 
                                     
Stockholders’ deficit:
                                       
Preferred stock—$.01 par value; authorized 2,500,000 shares
75,000 shares designated as Series A convertible preferred stock; 25,515 and 37,440 shares issued and outstanding at December 31, 2009 and 2008, respectively
                 255              374    
Common stock—$.001 par value; authorized 150,000,000 shares; 29,272,667 and 23,716,361 shares issued and outstanding at December 31, 2009 and 2008, respectively
                 29,273             23,716   
Additional paid-in capital
                 1,510,283             1,263,030   
Warrants
                 177,000             177,000   
Accumulated deficit
                 (3,674,274 )            (3,411,477 )  
Total stockholder’s deficit
                 (1,957,463 )            (1,947,357 )  
Total liabilities and stockholders’ deficit
              $ 778,015          $ 834,490   
 


WELLQUEST MEDICAL & WELLNESS CORPORATION

Consolidated Statements of Operations

Years ended December 31, 2009 and 2008

        2009
   
2008
Net revenues
              $ 3,823,994          $ 3,332,433   
 
                                     
Operating expenses:
                                       
Salaries, wages and benefits
                 1,247,574             1,256,706   
Rents and facility expenses
                 287,131             304,391   
Clinic direct expenses, excluding salaries, wages and benefits
                 1,527,040             1,138,221   
Spa direct expenses, excluding salaries, wages and benefits
                 295,639             341,591   
General corporate expenses
                 389,646             622,969   
Depreciation and amortization
                 115,625             114,377   
 
                                     
Total operating expenses
                 3,862,655             3,778,255   
 
                                     
Operating loss
                 (38,661 )            (445,822 )  
 
                                     
Interest income (expense):
                                       
Interest income
                              3,232   
Interest expense
                 (224,136 )            (289,508 )  
 
                                     
Net interest expense
                 (224,136 )            (286,276 )  
 
                                     
Net loss
              $ (262,797 )         $ (732,098 )  
 
                                     
Loss per common share:
                                       
Basic and diluted
              $ (0.01 )         $ (0.03 )  
 
                                     
Weighted average number of common shares and dilutive common share equivalents outstanding:
                                       
Basic and diluted
                 26,867,425             23,608,429