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Wound Management Technologies, Inc. – ‘10QSB’ for 6/30/96

As of: Monday, 7/22/96 · For: 6/30/96 · Accession #: 1010549-96-141 · File #: 0-11808

  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 7/22/96  Wound Management Techs, Inc.      10QSB       6/30/96    2:20K                                    Secs Transfer Corp/FA

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

Document/Exhibit                   Description                      Pages   Size 

 1: 10QSB       Quarterly Report -- Small Business                    10     44K 
 2: EX-27       Financial Data Schedule (Pre-XBRL)                     1      5K

10QSB — Quarterly Report — Small Business
Document Table of Contents

Page	(sequential)	\|	(alphabetic)	Top
			Alternative Formats (Word, et al.) Changes in Securities Exhibits, Financial Statement Schedules and Reports on Form 8-K Financial Statements Item 2 Item 4 Management's Discussion and Analysis of Financial Condition and Results of Operations 7-8
1	1st Page - Filing Submission
2	Item 1 -. Financial Statements
"	Item 2 -. Management's Discussion and Analysis of Financial Condition and Results of Operations 7-8
7	Item 2
9	Item 2. Changes in Securities
"	Item 4
"	Item 6. Exhibits, Financial Statement Schedules and Reports on Form 8-K

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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, 1996

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

 Commission File No. 0-11808

 MB SOFTWARE 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 [X]      No [ ]

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 June 30, 1996,  49,485,000  shares of the Issuer's  $.001 par value common
stock were outstanding.                                                         

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

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 MB SOFTWARE CORPORATION

 Form 10-QSB

 Quarter Ended June 30, 1996

                                                        [Enlarge/Download Table]


                                      INDEX                                                  

PART I  -  FINANCIAL INFORMATION                                                  PAGE NUMBER
                                                                                             
           Item 1  -  Financial Statements                                                   

                Consolidated Balance Sheet                                                   
                June 30, 1996 (Unaudited)                                             3-4    

                Consolidated Statements of Operations  -                                     
                for the Six Months and Three Months ended June 30, 1996 and 1995             
                (Unaudited)                                                            5     

                Consolidated Statements of Cash Flows                                        
                for the Six Months and Three Months ended June 30, 1996 and 1995             
                (Unaudited)                                                            6     

                Notes to Consolidated Financial Statements                             7     

           Item 2  -  Management's Discussion                                                
           and Analysis of Financial Condition and                                           
           Results of Operations                                                      7-8    

PART II - OTHER  INFORMATION                                                                 

           Item 2  -  Changes in Securities                                            9     

           Item 4  -  Submission of Matters to Vote by Security Holders                      
                                                                                       9     
           Item 6  -  Exhibits, Financial Statement Schedules                                
           and Reports on Form 8-K                                                           

SIGNATURES                                                                             10    

2 

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MB SOFTWARE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET
 June 30, 1996

 (Unaudited)

ASSETS

                                                                [Download Table]


                                                June 30    December 31
                                                 1996         1995    
                                                 ----         ----    
                                                                      
CURRENT ASSETS                                                        
       Cash                               $      118,610  $    36,535 
       Trade accounts receivable                 204,070       59,788 
       Notes receivable                           21,052          -   
       Advance                                     1,125              
       Prepaid  Expenses                           4,500              
                                           -------------  ----------- 
                    Total current assets         349,357       96,323 

PROPERTY AND EQUIPMENT, NET                       32,404       23,839 
                                           -------------  ----------- 

OTHER ASSETS                                                          
       Goodwill                                  942,882      956,045 
       Software development costs                122,911       51,879 
       Deposits                                   18,488       17,788 

                    Total other assets         1,084,281    1,025,712 
                                           -------------  ----------- 

                                          $    1,466,042  $ 1,145,874 
                                          ==============  =========== 


Continued 

3 

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MB SOFTWARE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET - (Continued)
 June 30, 1996

 (Unaudited)

LIABILITIES AND SHAREHOLDER'S EQUITY

                                                        [Enlarge/Download Table]

                                                                  June 30         December 31    
                                                                    1996              1995       
                                                                    ----              ----       
                                                                                                 
CURRENT LIABILITIES                                                                              
       Bank Overdraft                                         $            -     $        29,616 
       Notes Payable, including $38,214 and $130,172                                             
respectively, due to related parties                                   255,639           397,741 
       Accounts payable                                                104,180           177,266 
       Accrued liabilities                                             198,125           142,754 
       Other liabilities                                               163,084           527,350 
       Other                                                             6,813                   
                                                              ----------------   --------------- 

                    Total current liabilities                          727,841         1,274,727 
                                                              ----------------   --------------- 

LONG TERM LIABILITIES                                                                            
      Note Payable                                                   1,257,714           710,898 
      Other liabilities                                                130,000           130,000 
      Deferred Revenue                                                  81,595           160,878 
                                                              ----------------   --------------- 
                   Total long term liabilities                       1,469,309         1,001,776 

SHAREHOLDERS' EQUITY                                                                             
       Common stock .001 par value; 100,000,000 shares                                           
          authorized; 49,485,000 shares issued                          49,485            49,485 
       Additional paid-in capital                                      518,720           518,720 
       Retained Earnings (deficit)                                  (1,197,274)       (1,551,797)
       Treasury stock, at cost; 4,909,577 and 57,518 shares,                                     
respectively                                                          (102,039)         (147,039)

                    Total shareholders' equity (deficit)              (731,108)       (1,130,631)
                                                              ----------------   --------------- 

                                                              $      1,466,042   $     1,145,874 
                                                              ================   =============== 

4 

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MB SOFTWARE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS 
June 30, 1996 
(Unaudited) 

                                                        [Enlarge/Download Table]

                                                THREE MONTHS   THREE MONTHS    SIX MONTHS      SIX MONTHS 
                                                ENDED 6-30/96  ENDED 6/30/95  ENDED 6/30/96  ENDED 6/30/95
                                                -------------  -------------  -------------  -------------
                                                                                                          
REVENUES                                                                                                  
    Service fee & broker income                 $   34,027     $   45,131     $     35,843   $   63,561   
    Smart card product sales                           -           13,747              -         27,744   
    Software & maintenance sales                   683,599         34,103        1,286,698       88,701   
    Other income                                   219,992         41,241          250,000       46,570   
                                                   -------         ------          -------       ------   
          Total revenues                           937,618        134,223        1,572,541      226,577   
                                                   -------        -------        ---------      -------   

COST OF REVENUES                                                                                          
    Cost of service & broker fees                    2,548         11,985            2,548       15,189   
    Cost of smart card product sales                   -            7,238              -         14,136   
    Cost of software & maintenance                  82,617         23,241          185,456       67,080   
                                                    ------         ------          -------       ------   
          Total cost of revenues                    85,165         42,465          188,004       96,405   
                                                    ------         ------          -------       ------   

GROSS PROFIT                                       852,453         91,757        1,384,537      130,171   
                                                   -------         ------        ---------      -------   

OPERATING EXPENSES                                                                                        
    Selling, general & administrative              565,515        140,206          995,354      285,563   
    Depreciation and amortization                    4,646         10,042           10,262       20,083   
    Gain on disposition of assets held                                                                    
        for resale and related note receivable         -              -                -         28,417   
                                                   -------        -------        ---------       ------   
          Total operating expenses                 570,161        150,248        1,005,616      334,062   
                                                   -------        -------        ---------      -------   

INCOME FROM OPERATIONS                             282,292        (58,489)         378,921     (203,890)  
                                                   -------        -------          -------     --------   

OTHER INCOME (EXPENSES)                                                                                   
    Interest income, net                            (7,407)         4,905            8,445        5,827   
    Other, net                                     (13,743)         2,424           15,954        3,060   
                                                   -------          -----           ------        -----   
          Total other income, net                  (21,150)         7,329           24,399        8,887   
                                                   -------          -----           ------        -----   

NET INCOME BEFORE TAXES                         $  261,142     $  (65,819)    $    354,522   $ (212,778)  

PROVISION FOR INCOME TAXES                                                                                

NET INCOME                                      $  261,142     $  (65,819)    $    354,522   $ (212,778)  
                                                ----------     ----------     ------------   ----------   

    Income per weighted-average common shares   $     0.01     $    (0.00)    $       0.01   $    (0.00)  
                                                ==========     ==========     ============   ==========   

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


5 

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MB SOFTWARE CORPORAITON AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOW

June 30, 1996 
(Unaudited) 

                                                        [Enlarge/Download Table]


                                                                    1996            1995     
                                                                    ----            ----     
                                                                                             
CASH FLOW FROM OPERATING ACTIVITIES                                                          
       Net Income (Loss) for the period                        $    354,522   $    (212,778) 
       Adjustments to reconcile net income (loss) to net cash                                
        used by operating activities:                                                        
                    Depreciation                                     13,163          10,042  
      Changes in assets and liabilities                                                      
                    Trade accounts receivable                      (144,283)          3,396  
                    Advances                                         (1,125)            -    
                    Inventories                                                       9,964  
                    Notes receivable                                                 26,520  
                    Prepaid expenses and other                       (4,500)          3,309  
                    Deposits                                           (700)                 
                    Accounts payable                                 73,086         (22,499) 
                    Accrued Liabilities                             (55,371)       (127,888) 
                    Other Liabilities                               364,266             -    
                    Deferred revenues                                79,283             -    
                    Other                                            (6,812)        (38,632) 
                                                                     ------         -------  
Net cash used by operating activities                               671,529        (348,566) 

CASH FLOW FROM INVESTING ACTIVITIES                                                          
      Disposal (Purchase) of property and equipment                  (8,565)          7,314  
      Software development costs capitalized                        (71,032)            -    
      Proceeds from sale of Assets held for Sale                        -           377,964  
      Advances on notes receivable                                  (21,052)        (18,000) 
                                                                    -------         -------  
Net cash provided (used) by investing activities                   (100,649)        367,278  

CASH FLOW FROM FINANCING ACTIVITIES                                                          
      Receipts on notes payable                                     764,600         310,845  
      Principle payments on notes payable                          (350,411)       (325,145) 
      Increase (decrease) in cash overdraft                          29,616             -    
      Purchase of treasury stock                                     45,000             -    
                                                                     ------         -------  
Net cash provided by financing activities                           488,805         (14,300) 

INCREASE / (DECREASE) IN CASH                                        82,075           4,412  
                                                                     ------           -----  

 Cash at beginning of period                                         36,535          (15,795)

  Cash at end of period                                             118,610          (11,383)
                                                                    =======          ======= 

SUPPLEMENTAL INFORMATION                                                                     
     Cash paid during the period for interest                  $      8,451   $       11,076 
                                                               ============   ============== 


6 

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 MB SOFTWARE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 June 30, 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 MB Software 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 six months and three  months  ended June 30,
1996 are not  necessarily  indicative of the results to be expected for the full
year.                                                                           

This Quarterly Report on Form 10-QSB contains  forward looking  statements about
the  business,  operations  and  financial  condition of the Company,  including
various  statements  contained  in  "Management's  Discussions  and  Analysis of
Financial  Condition  and  Results of  Operations."  The  actual  results of the
Company could differ materially from those forward looking  statements.  Certain
factors that could cause the actual  results of the Company to differ from those
contained in the forward  looking  statements  are discussed in connection  with
those statements.                                                               

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

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

MB  Software  Corporation,  formerly  known  as 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 June 30, 1996, the Company provided business management services
to approximately 3,400 physicians,  dentists and 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
Company's  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.                          

7 

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

This  section  discusses  the  results  of  operations  of the  Company  and its
subsidiaries  for the  quarterly  period ended June 30, 1996.  Since  January 1,
1996,  the Company has been able to achieve  several of its goals  following the
acquisition of Santiago SDS, Inc.                                               

In the quarterly period ended June 30, 1996, revenues of $937,618 were generated
by claims servicing fees,  consulting and software and maintenance sales. In the
comparable quarter in 1995, revenues were $134,223.                             

Operating  Expenses for the  quarterly  period ended June 30, 1996  consisted of
$85,165  for cost of  revenues  and  $570,161  for  general  and  administrative
expenses.  In  comparison,  cost  of  revenues  were  $42,465  and  general  and
administrative  expenses were $150,248 for the comparable 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 for the  quarterly  period  ended June 30, 1996 was
$261,142 as compared to net loss of $(65,819) for the second 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 MB Software Corporation's businesses is expected to
be minimal.                                                                     

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

As of June 30,  1996,  the Company had total assets of  $1,466,042  with current
assets of $349,357 and property,  equipment  and other assets of $32,404.  Total
current liabilities at June 30, 1996 were $727,841.  Total long term liabilities
were $1,469,309 of which $1,257,714 consisted of loans to the Company by certain
of its officers,  directors and shareholders.  Net working capital at the end of
the period was ($378,484).                                                      

The Company made a profit in the first and second  quarter of 1996.  The Company
is actively  engaging in capital  expenditure  programs for its product systems,
software and hardware products.  It is management's belief that the Company will
need  additional  cash to launch it's two new  products.  If the  Company's  new
products are  unsuccessful  in the  marketplace,  the Company could be adversely
affected  because of the  significant  expenses  incurred  in  developing  those
products.                                                                       

Beginning in the third quarter of 1996, the Company intends to introduce two new
products.  First,  the  Company  plans to  release  version  1.0 of its  Windows
product.  Additionally,  the Company will be coming out with K.I.D.(TM),  (KID),
which  stands  for Kid  Identity  Defense  Program.  KID is a  nationwide  child
identification   system  that  facilitates  the  collection,   safeguarding  and
disseminations of a child's physical,  medical and demographic  information in a
secured  database.  The  information  is  available  to parents  and  authorized
guardians 24 hours a day, 365 days a year, by way of the KID toll-free hot line.
With permission from the child's  parent/guardian,  law enforcement officials or
emergency medical  practitioners,  a KID operator can distribute the information
via telecopy or the Internet to appropriate  local,  state and federal  agencies
within minutes.                                                                 

The KID program has generated substantial media attention. The Los Angeles Times
recently  wrote an  article on KID,  which was  published  in the  "Cyber  News"
Section  of that  paper.  Additionally,  an  Orange  County  television  station
recently interviewed Company personnel regarding KID.                           

8 

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The Company  hopes to  introduce  the KID program in the third  quarter of 1996,
with an  all-out  product  launch  in the first  quarter  of 1997.  The  Company
believes  that  both of its  new  products  have  the  potential  to  result  in
significant  additional  revenues  for the  Company.  However,  there  can be no
guarantee  that such  revenues will be  generated,  or if  generated,  that such
revenues will be significant.                                                   

The impact of the new  products on the  Company's  financial  position  could be
affected by a number of factors,  including the  Company's  ability to bring the
products  to market,  the timing of the  introduction  to the  marketplace,  the
acceptance of the products by the marketplace, and competition. It is impossible
to predict what impact,  if any,  these new products  will have on the operating
results of the  Company.  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.  The Company  intends to continue its
growth by  adding  customers  and  catering  to  existing  customers  as well as
aggressively marketing new products.                                            

PART II  -  OTHER INFORMATION                                                   

ITEM 2.  Changes in Securities                                                  

See Item 4, Submission of Matters to a Vote of Security Holders.                

ITEM 4.  Submission of Matters to a Vote of Security Holders                    

On June 18, 1996, the Company held its annual meeting of  stockholders.  At that
meeting,  Robert E.  Gross,  Araldo A.  Cossutta,  Steven  W.  Evans,  Thomas J.
Kirchhofer  and Scott A. Haire were  elected as directors of the Company for the
upcoming  year.  Additionally,  the  stockholders  approved an  amendment to the
Company's  articles  of  incorporation  that (i) changed the name of the Company
from INAV Travel  Corporation to MB Software  Corporation and (ii) increased the
number of  authorized  shares of common  stock of the  Company  from  50,000,000
shares to 100,000,000  shares. The stockholders also ratified the appointment of
King, Burns & Company,  P.C. as auditors for the Company.  Each director and the
proposals to amend the articles of incorporation  and to ratify the selection of
the  auditors  received the vote of the holders of  23,343,659  shares of common
stock,  or 51.98% of the total  outstanding  shares  entitled to be voted at the
meeting.  There were no votes against, any abstentions,  or any broker non-votes
with respect to any of the directors or the proposals.                          

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

Exhibits - All other exhibits are  incorporated  by reference from prior filings
with the Commission on Form 8-K during the period.                    

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

Reports on Form 8-K - The Company  filed the following  Reports.  Report on Form
8-K dated June 25, 1996.                                              

9 

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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.                                                                     

 MB SOFTWARE CORPORATION

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

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Dates Referenced Herein and Documents Incorporated by Reference

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

Filed on:	7/22/96
For Period End:	6/30/96	1	8
	6/25/96	9
	6/18/96	9
	1/1/96	8
	12/31/95	7		10KSB, 10KSB/A, PRE 14C
	6/30/95	2
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Filing Submission 0001010549-96-000141 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Wound Management Technologies, Inc. – ‘10QSB’ for 6/30/96

As of: Monday, 7/22/96 · For: 6/30/96 · Accession #: 1010549-96-141 · File #: 0-11808

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