SEC Info - MB Software Corp - 10QSB

SEC Info

Home

Help

Please Sign In

MB Software Corp · 10QSB · For 3/31/96

Filed On 5/10/96 · SEC File 0-11808 · Accession Number 1010549-96-60

  As Of               Filer                 Filing     On/For/As Docs:Pgs              Issuer               Agent

 5/10/96  MB Software Corp                  10QSB       3/31/96    2:10                                     1010549

Quarterly Report -- Small Business · Form 10-QSB
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10QSB       Quarterly Report -- Small Business                     9     42K 
 2: EX-27       Financial Data Schedule                                1      6K

10QSB · Quarterly Report -- Small Business
Document Table of Contents

Page	(sequential)	\|	(alphabetic)	Top
			Alternative Formats (RTF, XML, et al.) Exhibits, Financial Statement Schedules and Reports on Form 8-K Financial Statements Item 2 Item 5 Management's Discussion and Analysis of Financial Condition and Results of Operations Other Information
1	1st Page
2	Item 1 -. Financial Statements
7	Item 2
"	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
8	Item 5
"	Item 5. Other Information
9	Item 6. Exhibits, Financial Statement Schedules and Reports on Form 8-K

10QSB 1st Page of 9 TOC Top Previous Next Bottom Just 1st
 






 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: March 31, 1996                        

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT            

 Commission File No. 0-11808

 INAV TRAVEL CORPORATION

Colorado                                       59-2219994 
(State or other jurisdiction of                         (I.R.S. Employer        
incorporation or organization)                      Identification Number)    

2225 E. Randol Mill Road - Suite 305
 Arlington, Texas 76011-6306
(817) 633-9400

Check  whether the Issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or
for 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   [ ]           No   [X]    

Check whether the  registrant  filed all  documents  and reports  required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the  distribution  of
securities under a plan confirmed by a court.                                   
Yes   [X]           No   [ ]    

As of May 15, 1994,  49,485,000  shares of the  Issuer's  $.001 par value common
stock were outstanding.                                                         

Transitional Small Business Disclosure Format                                   
Yes  [ ]            No   [x]    

10QSB 2nd Page of 9 TOC 1st Previous Next Bottom Just 2nd

 INAV TRAVEL CORPORATION

 Form 10-QSB

Quarter Ended March 31, 1996

 INDEX

PART I  -  FINANCIAL INFORMATION                                     PAGE NUMBER

Item 1  -  Financial Statements                           

Consolidated Balance Sheet                      
            March 31, 1996 (Unaudited)                               3-4

Consolidated Statements of Operations  -        
for the Three Months ended March 31, 1996       
           (Unaudited)                                               5

Consolidated Statements of Cash Flows           
for the Three Months ended March 31, 1996       
            (Unaudited)                                              6-7

           Notes to Consolidated Financial Statements                8

Item 2  -  Management's Discussion                        
and Analysis of Financial Condition and                   
      Results of Operations                                          8

PART II - OTHER  INFORMATION                                                    

      Item 5  -  Other Information                                   9

Item 6  -  Exhibits, Financial Statement Schedules        
      and Reports on Form 8-K                                       10

SIGNATURES                                                               10     

2 

10QSB 3rd Page of 9 TOC 1st Previous Next Bottom Just 3rd

INAV TRAVEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET
March 31, 1996
 (UNAUDITED)

ASSETS
------

                                                                · Download Table


ASSETS                                      March 31,   December 31,
                                              1996           1995   
                                              ----           ----   
                                                                    
CURRENT ASSETS                                                      
       Cash                               $     23,000  $    36,535 
       Trade accounts receivable               121,581       59,788 
       Notes receivable                          9,000          -   

                    Total current assets       153,581       96,323 
                                          ------------  ----------- 

PROPERTY AND EQUIPMENT, NET                     28,564       23,839 
                                          ------------  ----------- 

OTHER ASSETS                                                        
       Goodwill                                947,528      956,045 
       Software development costs               90,158       51,879 
       Deposits                                 18,488       17,788 

                    Total other assets       1,056,174    1,025,712 
                                          ------------  ----------- 

                                          $  1,238,319  $ 1,145,874 
                                          ============  =========== 

- Continued - 

3 

10QSB 4th Page of 9 TOC 1st Previous Next Bottom Just 4th

INAV TRAVEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET (continued)
March 31, 1996

LIABILITIES AND SHAREHOLDERS' EQUITY

                                                        · Enlarge/Download Table


                                                                             March 31,        Dec. 31,   
                                                                               1995             1996     
                                                                               ----             ----     
                                                                                                         
CURRENT LIABILITIES                                                                                      
       Bank Overdraft                                                     $        15,339   $     29,616 
       Notes Payable, including $38,214 and $130,172 respectively,                                       
          due to related parties                                                  238,495        397,741 
       Accounts payable                                                           145,071        177,266 
       Accrued liabilities                                                        247,294        142,754 
       Other liabilities                                                          177,317        527,350 
       Deferred revenue                                                           112,156        160,878 
                                                                            --------------    -----------

                    Total current liabilities                                     935,672      1,435,605 
                                                                            --------------    -----------

LONG TERM LIABILITIES                                                                                    
      Note Payable                                                              1,164,898        710,898 
         Other liabilities                                                        130,000        130,000 
                   Total long term liabilities                                  1,294,898        840,898 
SHAREHOLDERS' EQUITY                                                                                     
       Common stock .001 par value; 50,000,000 shares                                                    
          authorized; 49,485,000 shares issued                                     49,485         49,485 
       Additional paid-in capital                                                 518,720        518,722 
       Retained Earnings (deficit)                                             (1,478,417)    (1,551,797)
       Treasury stock, at cost; 4,909,577and 57,518 shares, respectively         (102,039)      (147,039)
                                                                            --------------   ------------

                    Total shareholders' equity (deficit)                         (992,251)    (1,130,631)
                                                                            --------------   ------------

                                                                          $     1,238,319   $  1,145,874 
                                                                            ==============   ============

4 

10QSB 5th Page of 9 TOC 1st Previous Next Bottom Just 5th

INAV TRAVEL CORPORATION AND SUBSIDIARIES

 CONSOLIDATED STATEMENTS OF OPERATIONS
 (UNAUDITED)

                                                                · Download Table


                                                   THREE MONTHS   THREE MONTHS 
                                                   ENDED 3/31/96  ENDED 3/31/95
                                                   -------------  -------------
                                                                               
REVENUES                                                                       
       Service fee & broker income                 $      1,816    $    18,430 
       Smart card product sales                             -           13,997 
       Software & maintenance sales                     603,099         54,598 
       Other income                                      30,008          5,329 
                                                   -------------   ------------

               Total revenues                           634,922         92,354 
                                                   -------------   ------------

COST OF REVENUES                                                               
       Cost of service & broker fees                        -            3,204 
       Cost of smart card product sales                     -            6,898 
       Cost of software & maintenance                   102,839         43,839 
                                                   -------------   ------------

               Total cost of revenues                   102,839         53,941 
                                                   -------------   ------------

GROSS PROFIT                                            532,083         38,414 
                                                   -------------   ------------

OPERATING EXPENSES                                                             
       Selling, general & administrative                429,839        145,357 
       Depreciation and amortization                      5,616         10,041 
     Loss (Gain) on disposition of assets held                                 
           for resale and related note receivable           -           28,417 
                                                   -------------   ------------

               Total operating expenses                 435,455        183,814 
                                                   -------------   ------------

INCOME FROM OPERATIONS                                   96,628       (145,401)
                                                   -------------   ------------

OTHER INCOME (EXPENSES)                                                        
       Interest income(expense), net                     (1,038)           922 
       Other, net                                        (2,211)           636 
                                                   -------------   ------------

               Total other income(expense), net          (3,249)         1,558 
                                                   -------------   ------------

NET INCOME BEFORE TAXES                                  93,379       (146,959)

PROVISION FOR  INCOME TAXES                                 -              -   

NET PROFIT (LOSS)                                       $93,379    $  (146,959)
                                                   =============   ============

  Income per weighted-average common share         $      0.002    $     (0.01)
                                                   =============   ============

  Weighted-average common shares outstanding       $ 49,485,000    $49,485,000 
                                                   =============   ============

5 

10QSB 6th Page of 9 TOC 1st Previous Next Bottom Just 6th

INAV TRAVEL CORPORATION AND SUBSIDIARIES

 CONSOLDIATED STATEMENTS OF CASH FLOWS
 (UNAUDITED)

                                                        · Enlarge/Download Table

                                                              Three Months Ended March 31,       
                                                             1996                      1995      
                                                             -----                     ----      
                                                                                                 
CASH FLOWS FROM OPERATING ACTIVITIES                                                             
       Net Income(Loss) for the period                    $    93,379             $     (690,487)
       Adjustments to reconcile net income(loss) to net                                          
        cash used by operating activities:                                                       
                    Depreciation                                5,616                    129,467 
                    Loss on write down of software                                        77,885 
       Loss on disposition and write down of assets held                                         
           for sale and related notes receivable                                                 
      Gain on disposition of PC3 assets and certain                                      168,972 
           liabilities                                                                           
      Changes in assets and liabilities                                                  (17,944)
                          Trade accounts receivable           (61,793)                           
                          Inventories                             -                       (3,420)
                          Notes receivable                        -                       18,732 
                          Prepaid expenses and other              -                       22,479 
                          Deposits                               (700)                     1,500 
                          Accounts payable                     32,195                    (58,059)
                          Accrued Liabilities                (104,540)                  (113,384)
                          Other Liabilities                   350,033                     12,456 
                          Deferred revenues                    48,722                    160,878 
                          Other                                 1,034                          0 
                                                          ------------            ---------------

Net cash used by operating activities                         363,946                   (290,925)
                                                          ------------            ---------------

CASH FLOWS FROM INVESTING ACTIVITIES                                                             
      Disposal (Purchase) of property and equipment            (4,725)                    (3,227)
      Software development costs capitalized                  (38,279)                   (55,750)
      Cash paid in connection with sale of PC3                    -                    (2,580.00)
      Proceeds from sale of Assets held for Sale                                                 
          and related notes receivable                                                   295,512 
      Collections on notes receivable                          (9,000)                    75,000 
      Advances on notes receivable                                -                          -   
                                                          ------------            ---------------

Net cash provided (used) by investing activities              (52,004)                   308,955 
                                                          ------------            ---------------

CASH FLOWS FROM FINANCING ACTIVITIES                                                             
      Receipts on notes payable                               454,000                   (556,854)
      Principle payments on notes payable                    (159,246)                   561,538 
      Increase (decrease) in cash overdraft                   (14,277)                     7,593 
      Purchase of treasury stock                               45,000                        -   
                                                          ------------            ---------------

Net cash provided by financing activities                     325,477                     12,277 

INCREASE / (DECREASE) IN CASH                                 (13,535)                    30,307 
                                                          ------------            ---------------

 Cash at beginning of period                                   36,535                      6,228 

  Cash at end of period                                   $    23,000             $       36,535 
                                                          ============            ===============

SUPPLEMENTAL INFORMATION                                                                         
       Cash paid during the period for interest           $     1,038             $       87,427 
                                                          ============            ===============

SUPPLEMENTAL SCHEDULE OF NON-CASH                                                                
INVESTING AND FINANCIAL ACTIVITIES                                                               

     Issuance of note payable for acquisition of assets                                          
        and certain liabilities of Santiago               $       -               $      529,000 
                                                          ============            ===============

10QSB 7th Page of 9 TOC 1st Previous Next Bottom Just 7th

 INAV TRAVEL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1996
 (Unaudited)

1.   BASIS OF PRESENTATION                                                      

Certain  information  and footnote  disclosures  normally  included in financial
statements prepared in accordance with generally accepted accounting  principles
have been condensed or omitted,  although  management  believes the  disclosures
herein are adequate to make the  information  presented  not  misleading.  These
interim financial  statements should be read in conjunction with the most recent
financial statements of INAV Travel Corporation included in the Company's report
on Form 10-KSB for the year ended December 31, 1995.                            

The interim  financial  information  included  herein is  unaudited;  however it
reflects all adjustments  (consisting  solely of normal  recurring  adjustments)
which are, in the opinion of management,  necessary for a fair  presentation  of
financial position, results of operations and cash flows for the interim period.
The  results of  operations  for the three  months  ended March 31, 1996 are not
necessarily indicative of the results to be expected for the full year.         

ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS                                                   

The Company                                                                     
-----------                                                                     

INAV  Travel  Corporation  (the  "Company")  is a leading  provider  of practice
management  software  and cash  management  resources to  physicians,  dentists,
chiropractors  and medical  billing  centers.  As of March 31, 1996, the Company
provides  business   management  services  to  approximately  3,400  physicians,
dentists,  chiropractors  with over 2,300 physical  locations  supporting  these
services.                                                                       

The Company's  objective is to increase the number of physician  customers using
its  practice  management  software  products  and  through  the use of a common
software  platform,  become an  important  link for the  electronic  exchange of
information  between  physician  practices  and  connecting  service  providers.
Currently  over 250 clients  are on line to process  information  for  financial
services through the Company's OneClaim Plus (TM) practice management system.   

In the future,  the Company also plans to  establish  Internet  connections with
customers  through  an  Internet  hub  set up to work in  conjunction  with  the
practice  management  software.   The  Company's  strategy  for  achieving  this
objective is to move the Company's 3,400 existing practice management  customers
to the SDS Health Network  Information  System,  acquire new practice management
systems  under the SDS Health  Network  Platform  and provide  new and  enhanced
services along with related service products.                                   

8 

10QSB 8th Page of 9 TOC 1st Previous Next Bottom Just 8th

Results of Operations                                                           
---------------------                                                           

This  section  discusses  the  results of  operations  of  the  Company  and its
subsidiaries  for the quarterly period ended March 31, 1996.  Since the first of
January  1996,  the  Company  has been  able to  achieve  several  of its  goals
following the acquisition of Santiago SDS, Inc.                                 

In the  quarterly  period  ended  March 31,  1996,  revenues  of  $634,921  were
generated by claims  servicing  fees,  consulting  and software and  maintenance
sales. In the comparable quarter in 1995,  revenues  were $92,354. In the second
quarter,  the Company expects to release two new products involving the Internet
which may substantially  increase the Company's revenues.  In the third quarter,
the Company  expects to introduce  its  Windows  Practice  Management  Software,
which will make the Company's practice  management  software compatible with the
Windows operating  system. Development of new product is an ongoing process.    

Operating  Expenses for the first quarter 1996 consisted of $102,839 for cost of
revenues and $435,455 for general and  administrative  expenses.  In comparison,
cost of revenues  were  $53,940 and general  and  administrative  expenses  were
$183,814 for the first quarter in 1995.  These expenses include costs associated
with the  processing  and  servicing  of  medical  claims,  personnel,  building
occupancy lease,  new business and product  development  activities,  as well as
corporate, administrative, accounting and legal expenses. Net income was $93,379
as compared to net loss of $146,959 for the first quarter 1995.                 

The  Company is unable to  measure  the  impact of future  healthcare  insurance
legislation,  if any, on its medical receivables business.  The short and medium
range impact of inflation on INAV's businesses is expected to be minimal.       

Liquidity and Capital Resources                                                 
-------------------------------                                                 

As of March 31, 1996,  the Company had total assets of  $1,238,319  with current
assets of $153,581 and property,  equipment  and other assets of $28,564.  Total
current liabilities at March 31, 1996 were $935,672. Total long term liabilities
were $1,294,898 of which $1,164,898 consisted of loans to the Company by certain
of its officers,  directors and shareholders.  Net working capital at the end of
the period was ($782,091).                                                      

It is management's intent to generate  sufficient cash flows to cover its normal
operating  and  administrative  costs but these cash flows were  negative in the
first quarterly  period due to the cost of the Company's  aggressive  growth and
product development  activities,  payments relating to pre-existing  obligations
and repayment of loans from certain officers,  directors and  shareholders.  The
Company is actively  engaging in capital  expenditure  programs  for its product
systems,  software  and hardware  products.  The Company will attempt to enhance
cash flows from operations through sales efforts and operating  efficiencies and
in  addition,  may  attempt to sell stock or other  securities  through  private
placement  or to  obtain  loans  in 1996 as  necessary  to  fund  the  continued
development of the Company,  its programs and strategic  acquisitions.  However,
there can be no assurance that the Company will be successful in this regard.   

PART II  -  OTHER INFORMATION                                                   

ITEM 5. OTHER INFORMATION                                                       

On January 5th,  1996, in  connection  with the  restructuring  of the Company's
liabilities,  Robert T.  Shaw was  issued an  unsecured  Promissory  Note in the
amount of  $455,000 at 8% interest  maturing  in  December  1997.  Mr. Shaw also
purchased 4,500,000 shares of treasury stock for $45,000. The proceeds were used
to restructure short term liabilities and enhance the Company's current software
developments.                                                                   

9 

10QSB Last Page of 9 TOC 1st Previous Next Bottom Just 9th


ITEM 6. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K         

Exhibits-All exhibits are incorporated by reference from prior filings with     
--------   the Commission.                                                      

Financial Statements-See Item 1 for financial statements filed with this report.
--------------------                                                            

Reports on Form 8-K - No reports were filed on Form 8K during this period.      
-------------------                                                             

SIGNATURES

In accordance  with the  requirements  of the Exchange Act, the  registrant  has
caused this report to be signed on its behalf by the undersigned  thereunto duly
authorized.                                                                     

                               INAV TRAVEL CORPORATION

Date: May 10, 1996                        /s/ Scott A. Haire                    
                          ----------------------
                                          Scott A. Haire, Chairman of the Board,
                                           Chief Executive Officer and President
                                   (Principal Financial Officer)

10QSB	1st Page of 9	TOC	Top	Previous	Next	Bottom	Just 1st

10QSB	2nd Page of 9	TOC	1st	Previous	Next	Bottom	Just 2nd

10QSB	3rd Page of 9	TOC	1st	Previous	Next	Bottom	Just 3rd

10QSB	4th Page of 9	TOC	1st	Previous	Next	Bottom	Just 4th

10QSB	5th Page of 9	TOC	1st	Previous	Next	Bottom	Just 5th

10QSB	6th Page of 9	TOC	1st	Previous	Next	Bottom	Just 6th

10QSB	7th Page of 9	TOC	1st	Previous	Next	Bottom	Just 7th

10QSB	8th Page of 9	TOC	1st	Previous	Next	Bottom	Just 8th

10QSB	Last Page of 9	TOC	1st	Previous	Next	Bottom	Just 9th

Dates Referenced Herein and Documents Incorporated By Reference

		Referenced-On Page
This 10QSB Filing	Date	First	Last	Other Filings

	5/15/94	1
	12/31/95	7		10KSB, 10KSB/A, PRE 14C
For The Period Ended	3/31/96	1	8
Filed On / Filed As Of	5/10/96	9

Top				List All Filings

Filing Submission 0001010549-96-000060 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

			in		Show		and
Help...		Wildcards: ? (any letter), * (many). *Logic:* for Docs: & (and), \| (or); for Text: \| (anywhere), "(&)" (near).

MB Software Corp · 10QSB · For 3/31/96

Filed On 5/10/96 · SEC File 0-11808 · Accession Number 1010549-96-60

Quarterly Report -- Small Business · Form 10-QSBFiling Table of Contents

10QSB · Quarterly Report -- Small BusinessDocument Table of Contents

Dates Referenced Herein and Documents Incorporated By Reference

Quarterly Report -- Small Business · Form 10-QSB
Filing Table of Contents

10QSB · Quarterly Report -- Small Business
Document Table of Contents