U.S. Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 for the quarterly period ended June 30, 2000
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 for the transition period from _______ to
_______
BEAUTYMERCHANT.COM, INC.
(Exact name of small business issuer as specified in its charter)
Nevada 13-3422912
(State or other jurisdiction of (IRS Employer identification No.)
incorporation or organization)
4818 W. Commercial Blvd., Ft. Lauderdale, Florida 33319
(Address of principal executive offices)
(954) 717-8680
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 [x] No [ ]
Number of shares of common stock outstanding as of
August 12, 2000: 13,403,044
<PAGE 1>
CONSOLIDATED BALANCE SHEETS
BEAUTYMERCHANT.COM, INC. & SUBSIDIARIES
As of June 30, 2000 & December 31, 1999
ASSETS (Unaudited)
June 30, 2000 December 31, 1999
CURRENT ASSETS
Cash $ 139,299 111,428
Prepaid Expenses 216,410 391,121
Inventory 4,987 4,542
Shareholder Loan Receivable 7,892 7,892
Accounts receivable 6,585 5,385
------------- --------------
TOTAL CURRENT ASSETS 375,173 520,368
PROPERTY AND EQUIPMENT
Furniture 6,521 6,521
Leasehold improvements 2,000 2,000
Equipment 32,186 30,620
Accumulated depreciation (30,444) (28,544)
------------- --------------
NET PROPERTY AND EQUIPMENT 10,263 10,597
OTHER ASSETS
Deposits 3,700 3,700
------------- --------------
TOTAL OTHER ASSETS 3,700 3,700
TOTAL ASSETS $ 389,136 534,665
============= ============
See Accompanying Notes to Consolidated Financial Statements
<PAGE 2>
CONSOLIDATED BALANCE SHEETS (CONTINUED)
BEAUTYMERCHANT.COM, INC. & SUBSIDIARIES
As of June 30, 2000 & December 31, 1999
LIABILITIES AND STOCKHOLDERS' EQUITY
(Unaudited)
June 30, 2000 December 31, 1999
CURRENT LIABILITIES
Accounts payable and accrued expenses 4,530 4,930
Current portion of capitalized
lease obligation 2,022 2,182
------------ ------------
TOTAL CURRENT LIABILITIES 6,552 7,112
LONG-TERM DEBT
Capitalized lease obligation 3,855 4,945
STOCKHOLDERS' EQUITY
Common stock 10,963 9,706
($.001, par value,100,000,000
authorized- 10,963,044 and 9,706,000
issued and outstanding at June 30,
2000 & December 31, 1999, respectively)
Common stock subscribed($.001,
par value, 2,365,000 and 3,473,000
subscribed at June 30, 2000 & December
31, 1999, respectively at $.22 per share) 2,365 3,473
Convertible preferred stock ($.001
par value, 50,000,000 authorized-
1,000,000 shares issued and outstanding) 1,000 1,000
Common stock subscriptions
receivable (520,407) (671,637)
Additional paid-in-capital 1,516,715 1,413,046
Retained deficit (631,907) (232,980)
----------- ----------
TOTAL STOCKHOLDERS'EQUITY 378,729 522,608
$ 389,136 534,665
=========== ==========
See Accompanying Notes to Consolidated Financial Statements
<PAGE 3>
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
BEAUTYMERCHANT.COM, INC. & SUBSIDIARIES
For the Three and Six Months Ended June 30, 2000 & 1999
Three Three Six Six
Months Ended Months Ended Months Ended Months Ended
June 30, 1999 June 30, 2000 June 30, 1999 June 30, 2000
REVENUE
Sales $ 106,390 $ 91,515 $ 232,476 $ 199,155
Cost of Sales (59,834) (63,557) (129,814) (128,037)
------------ ------------ ------------ ------------
GROSS PROFIT 46,556 27,958 102,662 71,118
EXPENSES
Advertising $ 24,435 $ 31,329 $ 41,954 76,248
Auto Expenses 1,272 1,908 1,272 3,816
Depreciation 650 950 1,300 1,900
Dues & Fees 100 -- 2,100 --
Employee Benefits 534 -- 1,573 --
Emp. Leasing/Salaries 23,524 107,357 30,452 209,169
Equipment Leasing 516 -- 1,442 --
Insurance 2,211 4,660 5,873 11,205
Miscellaneous Expense 100 79 234 2,274
Office Expenses 6,353 4,052 10,096 12,518
Professional Fees 8,400 42,865 20,524 82,931
Public Trading 5,480 28,360 7,800 29,965
Rent 4,642 7,023 10,946 16,576
Supplies 4,626 196 5,034 1,190
Taxes & Licenses 70 254 195 752
Utilities 155 417 594 759
Web Development -- 331 -- 20,222
-------- ------- -------- -----------
TOTAL EXPENSES 83,068 229,781 141,388 469,525
OPERATING LOSS (36,512) (201,823) (38,726) (398,407)
Interest Expense (260) (260) (621) (520)
Interest Income -- -- 17,197 --
Deferred Tax Benefit 6,000 -- 3,671 --
NET LOSS $ (30,772) $ (202,083) $ (18,479) $ (398,927)
Net Loss Per Share-
Basic and fully diluted $ ** $ (.015) $ ** $ (.030)
============= =========== ============ ============
Weighted Average
Shares 12,816,604 13,162,044 11,767,175 13,135,044
============= =========== ============ ============
** Less than $ 0.01
See Accompanying Notes to Consolidated Financial Statements
<PAGE 4>
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
BEAUTYMERCHANT.COM, INC. & SUBSIDIARIES
For the Six Months Ended June 30, 2000 & 1999
June 30, 1999 June 30, 2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $ (18,479) $ (398,927)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Depreciation 1,300 1,900
Deferred income taxes (3,671) --
Common stock issued for services -- 103,818
(Increase) decrease in operating assets:
Accounts receivable (4,545) (1,200)
Interest receivable (17,197) --
Inventory -- (445)
Prepaid rent (4,339) --
Prepaid opening expenses (7,375) --
Other prepaid expenses -- 174,711
Decrease in operating
liabilities:
Accounts payable & accrued expenses ( 7,060) (400)
NET CASH USED IN --------- ---------
OPERATING ACTIVITIES (61,366) (120,543)
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Expenditures for equipment -- (1,566)
NET CASH USED IN --------- ---------
INVESTING ACTIVITIES -- (1,566)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Common stock issuances 193,095 151,320
Principal repayments under capital lease (1,250) (1,250)
Shareholder loans repayments (37,487) --
Excess of outstanding checks over
bank balance (11,366) --
NET CASH PROVIDED BY --------- ---------
FINANCING ACTIVITIES 142,992 149,980
NET INCREASE IN CASH
AND CASH EQUIVALENTS $ 81,626 $ 27,871
------------ -----------
Cash and cash equivalents,
beginning of period $ 4,164 $ 111,428
CASH AND CASH EQUIVALENTS
END OF PERIOD $ 85,790 $ 139,299
============ ==========
See Accompanying Notes to Consolidated Financial Statements
<PAGE 5>
CONSOLIDATED STATEMENTS OF CASH FLOWS-CONT.(Unaudited)
BEAUTYMERCHANT.COM, INC. & SUBSIDIARIES
For the Six Months Ended June 30, 2000 & 1999
June 30, 1999 June 30, 2000
------------- -------------
Supplementary cash flow disclosure:
Income taxes paid $ -- $ --
Cash paid for interest 621 520
============ ==========
Non-cash financing activities:
Common stock issued for services during the period ended:
$ -- $ 103,818
============ ==========
See Accompanying Notes to Consolidated Financial Statements
<PAGE 6>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
BEAUTYMERCHANT.COM, INC. & SUBSIDIARIES
June 30, 2000 (UNAUDITED)
ITEM 1.
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with generally accepted accounting
principles for interim financial information and pursuant to the rules
and regulations of the Securities and Exchange Commission.
Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete
financial statements.
In the opinion of management, the unaudited condensed consolidated
financial statements contain all adjustments consisting only of normal
recurring accruals considered necessary to present fairly the
Company's financial position at June 30, 2000, the results of
operations for the three and six month periods ended June 30,2000 and
1999, and cash flows for the six months ended June 30, 2000 and 1999.
The results for the period ended June 30, 2000, are not necessarily
indicative of the results to be expected for the entire fiscal year
ending December 31, 2000.
NOTE 2 - EARNINGS (LOSS) PER SHARE
The following represents the calculation of earnings (loss) per share:
Three Three Six Six
Months Ended Months Ended Months Ended Months Ended
BASIC & FULLY DILUTED* June 30, 1999 June 30, 2000 June 30, 1999June 30,2000
- --------------------- ------------------------------------------------------
Net Loss $ (30,772) $ (202,083) $ (18,479) $ (398,927)
Less- preferred stock dividends -- -- -- --
------------- ------------- ------------- ----------
Net Loss $ (30,772) $ (202,083) $ (18,479) $ (398,927)
Weighted average number
Of common shares 12,816,604 13,162,044 11,767,175 13,135,044
------------- ------------ ------------- ------------
Basic & Fully Diluted*
loss per share $ ** $ (.015) $ ** $ (.030)
============ ============ ============= ============
* The Company had no common stock equivalents during the periods presented
** Less than $(0.01)
<PAGE 7>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
With the exception of historical facts stated herein, the matters
discussed in this report are "forward looking" statements that involve
risks and uncertainties that could cause actual results to differ
materially from projected results. Such "forward looking" statements
include, but are not necessarily limited to, statements regarding
anticipated levels of future revenues and earnings from operations of
the Company. Readers of this report are cautioned not to put undue
reliance on "forward looking" statements which are, by their nature,
uncertain as reliable indicators of future performance. The Company
disclaims any intent or obligation to publicly update these "forward
looking" statements, whether as a result of new information, future
events, or otherwise. In addition the uncertainties include, but are not
limited to competitive conditions involving E-commerce, and the sales
of cosmetics, beauty and fragrance products over the Internet.
General Description of Business
Cleaning Express USA. The Company's operations primarily involve home
cleaning services. Through its emphasis on budget pricing, the
Company has developed a market in the home cleaning industry. The
Company currently operates two offices and dispatches 40-50 workers in
teams of two workers on a daily basis. The present geographic area in
which the Company operates includes Broward and South Palm Beach
County areas of South Florida.
Marketing for the home cleaning services is accomplished through print
ads, television and radio commercials. Additionally, the Company
utilizes a referral program that rewards customers with future
discounts for referring a client.
The home cleaning industry is highly competitive with respect to
price, service, quality and location. There are numerous, well-
established, larger competitors in the home cleaning industry
possessing substantially greater financial, marketing, personnel and
other resources than the Company. There can be no assurance that the
Company will be able to respond to various competitive factors
affecting the business. The Company plans to gain a competitive
advantage over its competitors in the home cleaning industry by
offering quality service at a low price. The Company has been
successful in achieving this goal since 1996 and plans to further
expand in South Florida by continuing its current marketing strategy.
The primary market for Cleaning Express USA is individual households.
No single customer makes up more than ten percent of the total
revenues of Cleaning Express USA. The Company does not expect that
this will change in the future.
<PAGE 8>
The Company has three full time employees and contracts with 40-50
workers that are each independently contracted with the Company to
service and provide home cleaning services to existing and new
customers.
Beautymerchant.com, Inc. During January 2000, the Company, through
its wholly owned subsidiary Beautymerchant.com, Inc., a Florida
corporation, developed a retail cosmetic and beauty product e-commerce
Internet site. Beautymerchant.com was developed under the guidance of
the CEO, Mr. Ed Roth, who has served as a management consultant for
beauty salons from 1978-1988. During this time, he became familiar
with retail cosmetics, hair, and skin products through attending
various trade shows and studying consumer trends concerning their
retailing. The site is designed to create a marketing and distribution
area for cosmetic, hair, nail and skin care and general beauty lines
on a discounted basis. Beautymerchant.com sells and distributes
popular cosmetic, fragrances and beauty products, primarily to females
in the 18-40 age bracket. Additionally, a department will be developed
that focuses on the cosmetic and beauty needs of individuals from a
variety of ethnic backgrounds and skin color. Products, development
and resources in this area will be focused on filling the needs of the
African-American community with further expansion to additional ethnic
groups planned for the future.
The Company will attempt to develop the Beautymerchant.com concept,
"We sell beauty for less", and will strive to provide the best prices
available. Currently, the Company is carrying a catalogue format,
offering brand name cosmetics and toiletries, totaling over 8,000
products, with new product lines being added as web traffic increases.
The Company maintains a floating inventory of Products through its
distributors, which is stored at the distributors location as product
sourcing eliminates the need for a costly extended inventory.
Generally, the Company does not purchase the products until the
consumer makes an online purchase. All customer orders are
implemented by online credit card or cyber cash systems with a virtual
shopping cart. The Company offers a secure shopping environment,
partnering with Verio and Mercantec systems for secure credit card
transactions and easy to use ordering. Visitors to the online store
are able to shop 24 hours a day, regardless of location, and will be
able to shop and order in English, Spanish, or French.
Beauty products are marketed over the World Wide Web via the Internet.
The Company has agreed to a marketing alliance with MSN.com to
advertise on their portal by means of banner ads and site
affiliations. Webcast1 Inc. will provide links and banner impressions
Beautymerchant.com. The Company also has entered an agreement with
Webcast1 Inc. of Boca Raton, Florida to host the site. The Company
also developed a 30 second T.V. spot to promote brand awareness. Other
marketing strategies are presently being explored.
<PAGE 9>
In addition, the Company plans to use in-house marketing and
advertising to promote its products. Advertising is expected to
increase leading into the fourth quarter of 2000.
During the first two quarters, the Company has continually focused on
the development and maintenance of the site. In addition to a
remodeling, the Company has added several new features to the `virtual
store front.' The site now has a new `look and feel' in order to
better promote the Company's products, and additional categories have
been added.
Beautymerchant.co.uk in England is being planned and developed. At
this time, no opening date has been announced. Beautymerchant.de is
also being planned to open in Germany. However, no opening date has
been announced. The Company has obtained and registered exclusive
domain rights in the respective countries. The Company expects to
begin contracting and negotiating with European distributors during
the Year 2000. The company has established worldwide customer service
capabilities with toll free numbers that are converted into E-mail on
a daily basis for prompt response to customer issues. The Company is
actively seeking partners and strategic alliances to help achieve it's
goal of becoming an online women's shopping destination.
Strategic Alliances
In June, 2000, the company entered into a strategic alliance with
Network Commerce Inc. NASDAQ(NWKC), a leading provider of systems and
services for the Internet. Beautymerchant.com will provide product
access for NWKC's company Ubarter.com and their members at full retail
price. The company will receive advertising and marketing
opportunities in radio, television and online promotion.
Beautymerchant.com expects to utilize up to $1,000,000 of media on an
annual basis.
The online beauty supply industry is highly competitive with respect
to price, service, quality and internet marketing. As a result, the
potential for failure in this industry is significant. There are
numerous, well-established, larger competitors in the online beauty
supply industry with comprehensive web sites, possessing substantially
greater financial, marketing, personnel and other resources than the
Company. There can be no assurance that the Company will be able to
respond to various competitive factors affecting the business. The
Company plans to gain a competitive advantage over its competitors in
online beauty products industry by offering a variety of quality
products at a low price, directly to the consumer. This will be
achieved by working directly with wholesalers, enabling the Company to
get and pass on to the customer the best prices in the online market.
The Company also plans to gain an advantage over the competition by
providing access to the web site in English, French and Spanish. The
<PAGE 10>
Company hopes that this will successfully increase its market appeal
and presence with a wide variety of cultures and communities.
Business Strategy
The Company's objective is to become a leading e-commerce retailer and
to enhance and brand itself as an online shopping destination for
beauty products, fragrances and accessories. The company is building
a customer base and expanding its electronic commerce expertise, while
offering consumers considerable discounts on name-brand beauty
products and cosmetics. The category market for fragrances alone is
estimated at $20 billion.
The Company believes that the sale of cosmetics, accessories and hair
care products will offer benefits to customers by providing
convenient, competitive pricing. In addition, customers entering
Beautymerchant.com may purchase gift certificates, browse and search
for favorite beauty and cosmetic products and participate in special
promotions. The Company expects to promote brand loyalty and repeat
purchases by providing a positive experience that encourages customers
to return frequently.
Browsing and Searching
Beautymerchant.com allows its customers to interactively search and
browse more than 8,000 name brand products. The Company has created a
"featured brands" section allowing customers to explore the brand
names we offer. Also, an extended category list allows customers to
search for their favorite products by category. New products are
expected to be added weekly.
Secure Credit Card Payment
Beautymerchant.com utilizes secure software through Bank One Inc. a
third party cybercash platform for e-commerce transactions, providing
encrypted personal information, including credit card numbers, names
and addresses.
Fulfillment and Availability
All of the Company's products are shipped within 24 hours from
distributor partners. Some products are available within 3-7 days.
Others are generally available within 4-6 weeks. Some back order
cosmetics and fragrances may not be available at all. The Company
uses e-mail to notify customers of order conditions. The Company
seeks to provide rapid and reliable fulfillment of customer orders.
<PAGE 11>
Technology
The Company recently formed an alliance with Webcast1 Inc. of Boca
Raton, Florida, a leading host and web designer, they will be
providing web hosting through Rapid Site/Verio. The Company recently
switched its site host due to continued technical problems and issues.
In addition, the E-commerce store has been completely upgraded with
`state-of-the-art' features. This arrangement will provide the Company
with `24/7' support.
Products and Geographic Expansion
The Company began retail operations in early 2000, and will attempt to
expand product sales on a continual basis. The Company has made
significant improvements over the first quarter.
Affiliate Program
The Company intends to increase market presence through its affiliate
program. A recent agreement was entered into with Commission Junction
of Santa Barbara, California to manage the program. Commission
Junction has acquired over 1300 affiliates through the second quarter.
Customer Service
The Company believes its ability to establish long-term relationships
with its customers will encourage repeat sales. The Company offers a
toll free customer service telephone number, and encourages e-mail
inquiries for customer care 24 hours a day.
Additional Risk Factor
Beautymerchant.com, a Florida corporation, has a limited operating
history. Having just started its retailing operation in the year 2000,
the Company has a short operating history upon which to evaluate its
business and prospects. As a new e-commerce company,
Beautymerchant.com faces intense competitors, and must manage growth
effectively. The Company may not succeed in addressing all challenges
and risks, including unpredictability of future revenues. To be
successful, Beautymerchant.com plans to implement the following:
1. Retain existing customers.
2. Attract new customers.
3. Meet customer demands.
4. Fulfill all customer orders.
5. Acquire additional sources for merchandise at discounted prices.
<PAGE 12>
6. Maintain sufficient website traffic.
7. Increase our Internet exposure.
8. Monitor the competition.
(Competition in the Internet and online market will intensify.
This increased competition may reduce our profit margins or
market share.)
9. Limit service interruptions.
(Customer access to our website affects the volume of orders.
Excessive system interruptions make our e-commerce store
unavailable.
The principal suppliers to Beautymerchant.com are wholesale
distributors, who do not sell retail.
The Beautymerchant.com in-house staff is projected to add 2-5 new
employees for the first 12 months of retail operations. These new
employees will be managed by the three employees that are presently on
staff. During the first quarter the company hired an in-house web
developer and designer who regularly updates and maintains the site.
Factors contributing to the Quarterly Performance Fluctuations
a) Costs relating to promotion and expansion of E-commerce site.
b) Competitors
c) Online user shopping habits.
d) The ability to attract visitors to Beautymerchant.com, and
convert them to shoppers.
Since the Company's inception, it has incurred losses from operations.
The Company anticipates losses to increase relating to the following
factors:
* The development of the Beautymerchant.com brand, marketing and
promotion.
* Expanded product offering and increased categories of products.
* Continued website development costs.
* Additional personnel to manage customer service and in-house
marketing.
* Increases in general and administrative costs to support the
Company's growing operations.
The ability to become profitable, depends on the ability to generate
higher revenues and maintain low expense levels. The Company's limited
operating history makes it difficult to forecast its revenues.
<PAGE 13>
Stock Based Compensation
Several key officers and management have elected to be compensated
with stock by S-8 registration. This has provided substantial cash
savings.
Additional Financing
The Company may need to raise additional funds to meet operating
requirements in the future. If the Company raises additional funds
through issuance of equity related or debt securities, such securities
may have rights to the Company's common stock, such as warrants or
options. Shareholders may experience additional dilution from exercise
of these equity instruments. The Company cannot be certain that
additional financing will be available when required or at all.
Results of Operations
- ---------------------
Net Income
The Company had a net loss of $(202,083), or $(.015) per common share,
for the three months ended June 30, 2000, versus a net loss of
$(30,772), or $(.001) for the same period ended June 30, 1999. The net
loss for the six months ended June 30, 2000 was $(398,927), or $(.030)
per share, versus a net loss of $(18,479) or $(.001) per share for the
six months ended June 30, 1999. The change in net loss was primarily
due to an increase in administrative expenses relating to the
commencing of the BeautyMerchant.com online superstore.
Sales
Revenues decreased $14,875 or 14% to $91,515 for the three months
ended June 30, 2000 as compared with $106,390 for the three months
ended June 30, 1999. For the six months ended June 30, 2000 revenues
decreased $33,321 or 14% as compared with $232,476 for the six months
ended June 30, 2000. The decrease was primarily due to seasonal
fluctuations in demand for the Company's home cleaning services.
Average selling prices and gross margins remained fairly constant.
Expenses
Selling, General, and Administrative expenses for the three months
ended June 30, 2000 increased $146,713 to $229,781. Selling, General,
and Administrative expenses for the six months ended June 30, 2000
increased $328,137 to $469,525. In comparison with the six month
period ended June 30, 1999, web development & professional expenses
increased $20,222 and $62,407 respectively due to the Company's
commencing and operating of the BeautyMerchant.com virtual online
superstore.
<PAGE 14>
Personnel expenses increased $178,717 due to new personnel contracts
for managers of the BeautyMechant.com online store. Additionally,
public trading expenses increased $22,165 to $29,965 for the six
months ended June 30, 2000 as compared with $7,800 for the same period
in 1999. The increase was primarily attributable to the initiation of
a new investor relations program.
Liquidity and Capital Resources
On June 30, 2000, the Company had cash of $139,299 and working capital
of $368,621. This compares with cash of $67,286 and working capital of
$42,764 at June 30, 1999. The increase in working capital was due to
an increase in accounts payable, offset by an decrease in prepaid
expenses and an increase in cash from proceeds of common stock sales.
Net cash used in operating activities was $120,543 for the six months
ended June 30, 2000 as compared with cash used in operating activities
of $61,366 for the period ended June 30, 1999 Cash provided by
financing activities totaled $149,980 for the six months ended June
30, 2000 as compared with cash provided by financing activities of
$142,992 for the six months ended June 30, 1999. The increase in cash
provided by financing activities was primarily due to the collection
of subscribed common stock in the amount of $151,320, which the
Company received from the issuance of approximately 687,409 common
shares. The Company intends to use the funds toward promoting the
BeautyMerchant.com subsidiary. As of June 30, 2000, the Company is due
$520,407 for subscriptions to its common stock by unrelated investors.
The Company is currently attempting to collect this remaining
outstanding balance from the unrelated investors. However, there can
be no assurance that the amount will be collected in full. Failure to
receive these subscriptions or other financing could have a material,
adverse effect on the Company's future operations.
PART II. OTHER INFORMATION
- --------------------------
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities
None.
Item 3. Defaults Upon Senior Securities
None.
<PAGE 15>
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
27.1 Financial Data Schedule
Reports on Form 8-K:
1) Form 8-K was filed on April 10, 2000 regarding the change in the
registrant's certifying accountants.
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.
BEAUTYMERCHANT.COM, INC.
(Registrant)
Date: August 12, 2000 ------------------------
/S/Michael J. Bongiovanni
Chief Financial Officer
<PAGE 16>