UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 For the quarter ended March 31, 1998
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to
__________
Commission File Number: 2-89616
Consolidated Medical Management, Inc.
(Exact name of Registrant as specified in charter)
Montana 82-0369233
State or other jurisdiction of I.R.S. Employer I.D. No.
incorporation or organization
13005 Justice Avenue, Baton Rouge, LA 70816
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (504) 292-3100
Check whether the Issuer (1) has 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 fling requirements for the past 90 days. (1) Yes
[X] No [ ] (2) Yes [X] No [ ]
State the number of shares outstanding of each of the Issuer's classes of
common equity as of the latest practicable date: At July 10, 1998, there were
5,136,057 shares of the Registrant's Common Stock outstanding.
Consolidated Medical Management, Inc.
Baton Rouge, Louisiana
Table of Contents
Part I - Financial Information
Page
Item 1. Financial Statements 1
Consolidated Balance Sheets 2
Consolidated Statements of Operations 3
Consolidated Statement of Changes in Stockholders' Equity 4
Consolidated Statements of Cash Flows 5
Notes to Consolidated Financial Statements 6
Report of Independent Accountants 11
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 12
Part II - Other Information
Item 1. Legal
Proceedings 14
Item 2. Change in Securities 14
Item 3. Defaults upon Senior Securities 14
Item 4. Submission of Matters to a Vote of Security Holders 14
Item 5. Other Information 14
Item 6. Exhibits and Reports on Form 8-K 15-17
Signature 17
Part I
Financial Information
Item 1. Financial Information
The consolidated financial statements for Consolidated Medical Management
Company, Inc. (the Company) included herein are unaudited but reflect, in
management's opinion, all adjustments, consisting only of normal recurring
adjustments, that are necessary for a fair presentation of the Company's
financial position and the results of its operations for the interim periods
presented. Because of the nature of the Company's business, the results of
operations for the six months ended June 30, 1998 are not necessarily
indicative of the results that may be expected for the full fiscal year. The
financial statements included herein should be read in conjunction with the
financial statements and notes thereto included in the Company's Annual Report
on Form 10-K for the year ended December 31, 1997 (1997 Form 10-K).
The consolidated financial statements included herein have been subjected to a
limited review by Roberts, Cherry and Company, independent accountants for the
Company, whose report is included herein.
<PAGE>
Consolidated Medical Management, Inc.
(A Montana Corporation)
Consolidated Balance Sheets
(Unaudited)
June 30, 1998 Dec 31, 1997
Assets
Current Assets
Cash $ 25,869 $ -
Receivables 143,465 -
Notes Receivable 147,000
Total Current Assets 316,334 -
Property, Plant and Equipment -Net 18,009 -
Other Assets 31,168 -
Total Assets $ 365,511 $ -
Liabilities and Stockholders' Equity
Current Liabilities
Notes Payable -Current Portion 3,284
Accounts Payable 101,048 -
Accrued Expenses 9,561 -
Advances from and accounts payable
to related parties - 53,614
Income Tax Payable - -
Deferred Income Taxes 2,005 -
Total Current Liabilities 115,898 53,614
Notes Payable -Long Term Portion 17,469 -
Subordinated Debentures 180,000
Total Long Term Liabilities 197,469 -
Stockholders' Equity
Common Stock -
$.001 par value, 50,000,000 shares
authorized, 5,116,057 shares issued
and outstanding as of June 30, 1998
and 216,057 shares issued and outstanding
as of December 31, 1997 5,116 216
Additional Paid-in-Capital 1,329,553 1,211,863
Retained Earnings (Deficit) (1,282,525) (1,265,693)
Total Stockholders' Equity (Deficit) 52,144 (53,614)
Total Liabilities and Stockholders'
Equity $ 365,511 $ -
The accompanying notes and accountant's compilation report are
an integral part of these financial statements.
<PAGE>
Consolidated Medical Management, Inc.
(A Montana Corporation)
Consolidated Statements of Operations
(Unaudited)
Three Months ended June 30, Six Months ended June 30,
1998 1997 1998 1997
Revenues $ 178,107 $ - $ 346,705 $ -
Operating Expenses
Salaries and Wages 102,614 173,272
Taxes and Licenses 15,158 18,072
Depreciation and
Amortization 5,352 7,464
Educational 2,817 3,299
Interest Expense 10,092 12,311
Legal and Professional 5,640 6,740 66,540 6,740
Office Expense 32,528 2,240 38,920 2,240
Occupancy 5,198 13,692
Total Operating Expenses 179,399 8,980 333,570 8,980
Income from Operations (1,292) (8,980) 13,135 (8,980)
Other Income (Expenses) (28,251) 193,681 (33,759) 193,685
Income (Loss) before Income
Taxes (29,543) 184,701 (20,624) 184,705
Income Tax Expense (3,792) - (3,792) -
Net Income (Loss) $ (25,751) $ 184,701 $ (16,832) $ 184,705
Net Income (Loss) per
Share $ (0.0050) $ 0.03 $ (0.0033) $ 0.03
The accompanying notes and accountant's compilation report are
an integral part of these financial statements.
<PAGE>
Consolidated Medical Management, Inc.
(A Montana Corporation)
Consolidated Statements of Changes in Stockholders' Equity (Deficit)
For the Three and Six Month Periods Ended June 30, 1998
(Unaudited)
Common Stock
shares Account Additional Retained
Paid Earnings
In Capital (Deficit) Total
Balances,
4/1/98 2,716,057 $ 2,716 $ 1,246,880 $ (1,256,774) $ (7,178)
Issue stock
for services
rendered 550,000 550 58,028 58,578
Issue stock for
acquisition of
Consolidated
Medical Management,
Inc. 1,850,000 1,850 24,645 26,495
Net Income (Loss)
for the three
months ended June
30, 1998 (25,751) (25,751)
Balances, 6/30/98 5,116,057 $ 5,116 $ 1,329,553 $ (1,282,525) $ 52,144
Balances, 1/1/98 216,057 $ 216 $ 1,211,863 $ (1,265,693) $ (53,614)
Issue stock for
advances to
related party
debt 2,500,000 2,500 35,017 37,517
Issue stock for
services rendered 550,000 550 58,028 58,578
Issue stock for
acquisition of
Consolidated
Medical
Management, Inc. 1,850,000 1,850 24,645 26,495
Net Income (Loss)
for the six months
ended
June 30, 1998 (16,832) (16,832)
Balances, 6/30/98 5,116,057 $ 5,116 $ 1,329,553 $ (1,282,525) $ 52,144
The accompanying notes and accountant's compilation report are
an integral part of these financial statements.
<PAGE>
Consolidated Medical Management, Inc.
Baton Rouge, Louisiana
Consolidated Statements of Cash Flows
(Unaudited)
For the Six Months ended
June 30, 1998 June 30, 1997
Cash Flows from Operating Activities:
Net Income (Loss) $ (16,832) $ 184,616
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating Activities:
Depreciation 7,464 -
(Increase) Decrease in Receivables (143,465) -
(Increase) Decrease in Other Assets (31,168) -
Increase (Decrease) in Accounts Payable 101,048 (75,187)
Increase (Decrease) in Interest Payable
to Related Party - (81,524)
Increase (Decrease) in Advances from and
accounts payable to related parties - (28,745)
Increase (Decrease) in Accrued Expenses 9,561 -
Increase (Decrease) in Deferred Income Taxes 2,005 -
Net Cash Provided Used by Operating Activities (71,387) (840)
Cash Flows from Investing Activities:
Issuance of Notes Receivable (147,000)
Purchases of Property, Plant and Equipment (29,174)
Net Cash Used by Investing Activities (176,174) -
Cash Flows from Financing Activities:
Repayment of Loans to Shareholder and Short
Term Debt (2,255)
Proceeds from Issuance of Debentures 180,000
Proceeds from Stock Issuance 40,000
Proceeds from Issuance of Debt 23,008
Payments on Long-Term Debt (1,738)
Net Cash Provided by Financing Activities 239,015 -
Net Increase (Decrease) in Cash (8,546) (840)
Cash, Beginning of period 34,415 840
Cash, end of period 25,869 -
Supplemental Disclosure of Cash Flow
Information
Cash Paid During the Year for:
Interest $ 9,398 $ -
Income Taxes $ - $ -
Non Cash Financing
The Company issued stock in exchange
for services and the forgiveness of
debt, totaling $40,000 and $18,578,
respectivley.
The accompanying notes and accountant's compilation report are
an integral part of these financial statements.
<PAGE>
Consolidated Medical Management, Inc.
(A Montana Corporation)
Notes to Consolidated Financial Statements
(UNAUDITED)
Note 1 Organization and Summary of Significant Policies
The Company (formerly Golden Maple Mining and Leaching Co., Inc.) was
incorporated under the laws of the State of Montana on August 13, 1981. The
Company ceased its mining operations in 1985, and discontinued all business
operations in 1990. On May 23, 1998, the Company acquired all the common
stock of Consolidated Medical Management, Inc. (a private Louisiana
corporation, hereafter sometimes referred to as "CMMI-LA" or "subsidiary") in
a stock for stock exchange transaction, whereupon, CMMI-LA became a wholly
owned subsidiary of the Company. These financial statements reflect the
financial condition and results of operations for the consolidated Company,
retroactively stated for the fiscal periods.
The subsidiary provides management services for home healthcare providers
predominately in southern Louisiana.
Accounting policies of the Company conform with generally accepted accounting
principles and reflect practices appropriate to the industry in which it
operates. The significant policies are summarized below:
Property, Plant, Equipment and Depreciation - Expenditures for property,
plant and equipment are recorded at cost. Renewals and improvements which
extend the economic life of such assets are capitalized. Expenditures for
maintenance, repairs and other renewals are charged to expense. For major
dispositions, the cost and accumulated depreciation are removed from the
accounts and any gain or loss is included in the results of operations.
Depreciation is provided over the estimated useful lives of assets using
accelerated methods.
Receivables - The Company, through it's Louisiana subsidiary, grants credit
through trade receivables to its customers, all of whom are home health care
providers in the state of Louisiana. The Company performs ongoing credit evalua
tions of its customers' financial condition and, generally, requires no
collateral from its customers. As of year-end, the company reviewed its
receivables and determined those receivables that collection was deemed
questionable and charged off those receivables. A further review of
receivables indicated no additional allowance was necessary for the remaining
accounts.
Cash Flows and Concentration of Credit Risk - Cash consists principally of
demand deposits at commercial banks. These balances, as reflected in the
bank's records, are insured by the Federal Deposit Insurance Corporation up to
$100,000. At June 30, 1998 and December 31, 1997, the Company's deposits did
not exceed the insured limits.
Risks and Uncertainties - The preparation of financial statements in
conformity with generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reported period. Actual results could differ from those
estimates.
Note 2 Receivables
Receivables consist of the following:
1998 1997
Management Fees $ 129,901 $ -
Advances to Trinity Billing 13,564 -
$ 143,465 $ -
Note 3 Property, Plant and Equipment
1998 1997
Furniture $ 6,182 $ -
Equipment 22,992 -
Less Accumulated Depreciation (11,165) (-)
Property, Plant and Equipment - Net $ 18,009 $ -
Note 4 Lease Commitments
During the periods ended June 30, 1998, the Company leased its office
facilities under operating leases, which expire June 1998 and August 1998.
Monthly rent for the office space totals $1,225. The Company can renew the
leases for additional one-year periods for approximately the same monthly
rental. Lease expense for the six months ended June 30, 1998 and 1997 totaled
$8,693 and $12,435 respectively.
The Company leases its copier under a non-cancelable operating lease expiring
in 1999. Lease expense for the three and six-month periods ended June 30,
1998 was $671 and $1,342, respectively. At June 30, 1998, future minimum
lease payments under long-term non-cancelable leases for succeeding fiscal
periods is as follows:
1998 $ 2,543
1999 1,343
Total $ 3,886
Note 5 Notes Receivable
1998 1997
Note Receivable from Spectrum Financial,
Inc. in the original amount of $15,000,
with interest at 6%, principal and
interest due June 30, 1999, unsecured. $ 15,000 $ -
Note Receivable from Jaguar, Inc. in the
original amount of $100,000, with
interest at 6%, principal and interest
due June 30, 1999, unsecured. 100,000 -
Note Receivable from Southern Properties
Management, Inc. in the original
amount of $15,000, with interest at 6%,
principal and interest due on June 30,
1999, unsecured. 15,000
Note Receivable from Jaguar, Inc. in
the original amount of $17,000, with
interest at 6%, principal and interest
due June 30, 1999, unsecured. 17,000 -
Total Notes Receivable 147,000 $ -
Less Current Portion (147,000)
Long Term Portion of Notes Receivable $ -
Note 6 Economic Dependence and Subsequent Events
During the six months ended June 30, 1998, approximately fifty-six (56%)
percent of the Company's management fee income was earned under management
contracts with one major customer. The contracts have a term of one year,
ending December 31, 1998, renewable annually.
Note 7 Notes Payable
1998 1997
Note payable to the stockholder of
the Company, dated June 24, 1996, due
on demand, interest at 6%, payable at
maturity or demand, unsecured $ 12,745 $ -
Note payable to GE Capital financing
the phone system, in the original
amount of $10,222, dated September 16,
1997, payable in thirty-six
installments of $341 with interest at
12.5%, secured by a pledge of the phone
system. 8,008 -
Total Notes Payable 20,753 -
Less: Current Portion (16,029) ( )
Long-Term Portion $ 4,724 $ -
Maturities of Notes Payable over the
next five years are:
1998 $ 16,029
1999 3,718
2000 1,006
$ 20,753
Note 8 Income Taxes
The provision for income taxes for three and six months ended June 30, 1998
consists of the following:
1998 1997
Current Provision
Federal $ - $ -
State - -
Deferred Provision (Benefit) (3,792)
Total Income Tax Expense (Benefit) $ (3,792) $ -
The effective tax rate of the Company for 1998 and 1997 differs from the
federal statutory rate primarily due to state income taxes.
Deferred income taxes arise from temporary differences resulting from the
Company's subsidiary utilizing the cash basis of accounting for tax purposes
and the accrual basis for financial reporting purposes. Deferred taxes are
classified as current or noncurrent, depending on the classification of the
assets and liabilities to which they relate. Deferred taxes arising from
timing differences that are not related to an asset or liability are
classified as current or noncurrent depending on the periods in which the
timing differences are expected to reverse. The principal temporary
differences relate to revenue and expenses accrued for financial purposes,
which are not taxable for financial reporting purposes.
The net deferred tax asset or liability is composed of the following:
1998 1997
Total Deferred Tax Assets $ - $ -
Total Deferred Tax Liabilities 2,005 -
Net Deferred Tax Liability 2,005 -
Less Current Portion 2,005 -
Long - Term Portion $ - $ -
Note 9 Commitments and Contingencies
In the opinion of management, there are no contingent claims or litigation
against the Company which would materially affect its financial position at
June 30, 1998.
The Management service contracts that the Company has with the Home Health
Care Agencies it serves include a provision that allows the Company's client
to recover the amount paid by the client from the management fees paid to the
Company if the client is required to repay any fees it receives, due to
actions or services provided it by the Company.
Note 10 Related Party Transactions
During the three and six month periods ended June 30, 1998, the Company paid
GCSW Funding Group, Inc. and Southern Property Management, Inc., related
parties, for purchased consulting services totaling $15,392 and $34,308,
respectively. At June 30, 1998 and December 31, 1997, $48,212 and $-0-,
respectively were due for these services.
The Company had a Note Payable from a major stockholder of $12,745 as of June
30, 1998. See Note 6.
Note 11 Subordinated Debentures
The Company issued debentures in 1998 that are subordinated to bank debt and
secured leases. The debentures are otherwise unsecured but are given a
preference over unsecured debt. The debentures include interest at fifteen
(15%) percent, payable in monthly installments. Each debenture has a
conversion right for each holder to convert the debenture principal to shares
of the Company's common stock at the greater of $2.50 per share or sixty (60%)
percent of the bid price, whichever is greater on the date of conversion.
Accrued interest and any principal amount not converted to shares of stock
will be paid in cash. As of June 30, 1998, the company had issued $180,000 in
debentures, with accrued interest, included in Accrued Liabilities, of $2,250.
Note 12 Subsequent Events
On July 10, 1998, the Company purchased all of the outstanding stock of United
Medical Services, Inc. (which changed its name to Independent Diagnostic
Services, Inc.) in exchange for the issuance of 20,000 shares of the Company's
unissued stock.
REPORT OF INDEPENDENT ACCOUNTANTS
The Board of Directors
Consolidated Medical Management, Inc.
(A Montana Corporation)
Baton Rouge, Louisiana
We have made a review of the consolidated balance sheet of Consolidated
Medical Management, Inc. as of June 30, 1998, and the related consolidated
statements of operations and cash flows for the three-month and six-month
periods ended June 30, 1998 and 1997, in accordance with standards established
by the American Institute of Certified Public Accountants. These financial
statements are the responsibility of the Company's management.
A review of interim financial information consists principally of obtaining an
understanding of the system for the preparation of interim financial
information, applying analytical review procedures to financial data, and
making inquiries of persons responsible for financial and accounting matters.
It is substantially less in scope than an audit in accordance with generally
accepted auditing standards, the objective of which is the expression of an
opinion regarding the financial statements taken as a whole. Accordingly, we
do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the consolidated financial statements referred to above for
them to be in conformity with generally accepted accounting principles.
The balance sheet as of December 31, 1997 and the related statements of
income, cash flows and changes in stockholders' equity for the year then ended
(not present herein); have been previously audited, in accordance with
generally accepted auditing standards by other auditors whose report was dated
February 17, 1998, wherein he expressed an unqualified opinion on those
financial statements.
ROBERTS, CHERRY and COMPANY
A Corporation of
Certified Public Accountants
Shreveport, Louisiana
July 31, 1998
<PAGE>
Consolidated Medical Management, Inc.
(A Montana Corporation)
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
The following discussion and analysis should be read in combination with
Management's Discussion and Analysis of Financial Condition and Results of
Operations in Item 7 of the 1997 Form 10-K, the financial statements and notes
contained in Item 8 of the 1997 Form 10-K and the interim financial statements
and notes thereto contained elsewhere in this Report.
RESULTS OF OPERATIONS
For the Three and Six Month Periods Ended June 30, 1998
Net Loss applicable to common stock totaled ($29,543) or ($0.0058) per share
for the second quarter of 1998, as compared to net income of $184,071 or $0.03
per share for the corresponding period in 1997. The following principal
factors contributing to these results. In the 1997 period, the Company had no
operations and recognized a gain from debt forgiveness of $193,681 and
operating loss of ($9,069) for the six months ended June 1997. For the
comparable period ended June 30, 1998, the Company recognizes the operations
of its wholly-owned subsidiary, CMMI-LA with operating revenue of $178,107 and
$346,705 for the three-month and six-month periods ended June 30, 1998,
respectively.
Operating revenues are management fees associated with providing services,
under contract, to various home-health providers and PHP (Partial Hospital
Programs), primarily located in southern Louisiana. Changes in the home
health care industry caused the Company to shift its emphasis away from home
health care and toward the PHP program, and to other medical management
programs, which the Company expects will be more profitable.
For the three-month and six month periods ended June 30, 1998, the Company
incurred operating costs associated with the production of management fee
revenue totaling $176,899 and $330,541, respectively. The most significant
elements of operating expenses are salaries of $102,614 and $173,272, for
these periods, respectively. Salaries include the professional wages of the
personnel who deliver the health-care services required by the contracts and
related administrative salaries and benefits.
The Company incurred office expense totaling $38,920 for the six-month period,
which includes a one-time charge of $18,860 to account for non-professional
fees incurred in completing the merger.
In the three months ended June 30, 1998, the Company took a one-time charge
against earnings of $40,000 for professional consulting costs associated with
the acquisition of CMMI-LA. These expenses included fees for the location of
the company, the negotiation of the merger arrangements and terms and the
successful conclusion of the plan.
FINANCIAL CONDITION
Liquidity and Capital Resources
In March and April of 1998, the Company sold a total of $180,000 in
convertible subordinated debentures. The debentures are subordinated to bank
debt and secured leases and are due within one year of issue. The debentures
are otherwise unsecured but are given a preference over unsecured debt. The
debentures include interest at fifteen (15%) percent, payable in monthly
installments. Each debenture has a conversion right for each holder to
convert the debenture principal to shares of the Company's common stock at the
greater of $2.50 per share or sixty (60%) percent of the bid price, whichever
is greater on the date of conversion. Accrued interest and any principal
amount not converted to shares of stock will be paid in cash.
The Company had cash of $25,869 as of June 30, 1998 and receivables totaling
$143,465 from customers, of which $81,529 (57% of total receivables) was
current, $8,944 (6%) was thirty days old and the remainder of $52,992 (37%)
was older than sixty days. Management has reviewed the collectibilty of these
accounts, and determined that the collection is probable.
The Company advanced funds to Jaguar, Inc., Spectrum Financial, Inc. (a
shareholder) and Southern Properties Management, Inc. in the form of notes
receivable totaling $147,000 as of June 30, 1998. The terms of the notes call
for the Company to be paid interest of 6%, are due June 30, 1999 and are
unsecured. Management believes these amounts to be collectable.
Part II
Other Information
Item 1. Legal Proceedings
There are no legal actions reportable under this section.
Item 2. Change in Securities
There have been no changes in securities of the Company in the quarter ended
June 30, 1998.
Item 3. Defaults upon Senior Securities
There have been no defaults by the Company on any Senior Securities.
Item 4. Submission of Matters to a Vote of Security Holders
During the quarter ended June 30, 1998, the following matters were submitted
to a vote by the stockholders of the company:
May 23, 1998, the stockholders for the Company met in a special
meeting to adopt the Plan of Reorganization and to elect a Board
of Directors. The Plan of Reorganization was adopted. The
following Directors were elected:
Sunnie M. Wooley
Peggy D. Behrens
Rand Eardley
May 23, 1998, the Board of Directors met and elected Officers:
Sunnie M. Wooley President, CEO, Principal
Accounting Officer, Treasurer and CFO
Peggy D. Behrens Secretary
Item 5. Other Information
Acquisition of Consolidated Medical Management, Inc.
During the quarter ended June 30, 1998, the Company completed its Plan of
Reorganization wherein the Company issued 1,850,000 shares of its stock in
exchange for all the outstanding stock of Consolidated Medical Management,
Inc. (a Louisiana corporation) (hereafter called "private company").
Concurrent with this Plan, the Company changed its name from Golden Maple
Mining and Leaching Co, Inc. to Consolidated Medical Management, Inc. and
moved its principal offices to Baton Rouge, Louisiana. Incidental to the
acquisition of the private company, CMMI-LA became a wholly-owned subsidiary
of the Company.
Acquisition of Independent Diagnostic Services, Inc.
On July 10, 1998, the Company purchased 100% of the outstanding stock of
Independent Diagnostic Services, Inc. in exchange for issuance of 20,000
shares of the Company. Independent Diagnostic Services, Inc. provides
diagnostic ultrasound imaging services to physician offices, clinics,
hospital, and skilled nursing facilities, and also provides mobile
laboratories that will enable services to be provided for communities with
limited access to technologists, hospitals and diagnostic laboratories.
<PAGE>
Consolidated Medical Management, Inc.
(A Montana Corporation)
Proforma Combined Balance Sheet
June 30, 1998
Historical Pro Forma
CMMI Independent Pro Forma Pro Forma
Diagnostic Adjustments Combined
Services, Inc. Totals
Assets
Current Assets
Cash $ 25,869 $ (1,591) $ 24,278
Receivables 143,465 - 143,465
Notes Receivable 147,000 2,000 149,000
Total Current Assets 316,334 409 316,743
Property, Plant and
Equipment -Net 18,009 465 18,474
Investment in Subsidiary (a) 100,000 100,000
Due from Related Parties - 7,510 7,510
Other Assets 31,168 - 31,168
Total Assets $ 365,511 $ 8,384 $ 100,000 $473,895
Liabilities and
Stockholders' Equity
Current Liabilities
Notes Payable
-Current Portion 3,284 10,081 13,365
Accounts Payable 101,048 - 101,048
Accrued Expenses 9,561 - 9,561
Advances from and
accounts payable to
related parties - 13,900 13,900
Income Tax Payable - - -
Deferred Income Taxes 5,797 - 5,797
Total Current Liabilities 119,690 23,981 143,671
Notes Payable -Long Term
Portion 17,469 - 17,469
Subordinated Debentures 180,000 - 180,000
Total Liabilities 197,469 - 197,469
Stockholders' Equity
Common Stock-
$.001 par value,
50,000,000 shares
authorized,
5,136,057 shares
issued and outstanding
as of June 30, 1998
and 216,057 shares
issued and outstanding
as of December 31, 1997 5,116 - (a) 20 5,136
Additional
Paid-in-Capital 1,329,553 - (a) 99,980 1,429,533
Retained Earnings
(Deficit) (1,286,317) (15,597) (1,301,914)
Total Stockholders'
Equity 48,352 (15,597) 100,000 132,755
Total Liabilities and
Stockholders' Equity $ 365,511 $ 8,384 $ 100,000 $ 473,895
Consolidated Medical Management, Inc.
(A Montana Corporation)
Pro Forma Combined Statement of Operations
for the Six Months Ended June 30, 1998
Historical Pro Forma
CMMI Independent Pro Forma Pro Forma
Diagnostic Adjustments Combined
Services, Inc. Totals
Revenues $ 346,705 $ 71,100 $ 417,805
Operating Expenses
Salaries and Wages 173,272 - 173,272
Taxes and Licenses 18,072 28 18,100
Depreciation and
Amortization 7,464 36 7,500
Educational 3,299 8,288 11,587
Interest Expense 12,311 103 12,414
Legal and Professional 66,540 49,664 116,204
Office Expense 38,920 28,312 67,232
Occupancy 13,692 266 13,958
Total Operating
Expenses 333,570 86,697 420,267
Income from Operations 13,135 (15,597) (2,462)
Other Income
(Expenses) (33,759) - (33,759)
Income (Loss) before
Income Taxes (20,624) (15,597) (36,221)
Income Tax Expense - - -
Net Income (Loss) $ (20,624) $ (15,597) $ (36,221)
<PAGE>
Notes To Proforma Combined Statements:
(a) This reflects the issuance of stock in the Company for the acquisition
of Independent Diagnostic Services, Inc.
Item 6. Exhibits and Reports on Form 8-K
During the three-month period ended June 30, 1998, the Company filed an 8-K on
May 26, 1998 concerning the Plan of Reorganization governing its acquisition
of Consolidated Medical Management, Inc. (the Louisiana private company). On
June 18,1998 the Company filed form 8-K/A (amendment 1) which amended the
original 8-K to include the audited financial statements for the private
company for the period ended December 31, 1997 thereof. On July 6, 1998, the
Company filed amendment 2 to this form 8-K, which included the proforma
financial statements of the combined companies.
Exhibit Table
(2) Plan of acquisition, reorganization, Incorporated by reference in the 8-K
arrangement, liquidation, or
succession
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Consolidated Medical Management, Inc.
___________________________________________
By - Sunni M. Wooley, President and Principal Financial Officer
Date: August 12, 1998
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 6-MOS 3-MOS
<FISCAL-YEAR-END> DEC-31-1998 DEC-31-1998
<PERIOD-END> JUN-30-1998 JUN-30-1998
<CASH> 25,869 0
<SECURITIES> 0 0
<RECEIVABLES> 143,465 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 316,334 0
<PP&E> 18,009 0
<DEPRECIATION> 7,464 5,352
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<CURRENT-LIABILITIES> 115,898 0
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0 0
0 0
<COMMON> 5,116 0
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<TOTAL-LIABILITY-AND-EQUITY> 365,511 0
<SALES> 0 0
<TOTAL-REVENUES> 346,705 178,108
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 33,759 28,251
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> (20,624) (29,543)
<INCOME-TAX> (16,832) (25,751)
<INCOME-CONTINUING> 0 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (16,832) (25,571)
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