UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 5
ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
( ) Check box if no longer subject to Section 16.
Form 4 or Form 5 obligations may continue. See Instructions 1(b).
( ) Form 3 Holdings Reported
(X) Form 4 Transactions Reported
1. Name and Address of Reporting Person
Harrison Paul W.
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(Last) (First) (Middle)
9040 Roswell Road, Suite 470
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(Street)
Atlanta Georgia 30350
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(City) (State) (Zip)
2. Issuer Name and Ticker or Trading Symbol
HealthWatch, Inc. (HEAL)
3. IRS or Social Security Number of Reporting Person (Voluntary)
4. Statement for Month/Year
December 1997
5. If Amendment, Date of Original (Month/Year)
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6. Relationship of Reporting Person(s) to Issuer (Check all applicable)
(X) Director (X) 10% Owner (X) Officer (give title below) ( ) Other
(specify below)
Chairman
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7. Individual or Joint/Group Reporting (Check Applicable Line)
(X) Form filed by One Reporting Person
( ) Form filed by More than One Reporting Person
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<TABLE>
<CAPTION>
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Table I -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned |
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1. Title of Security |2. |3. |4.Securities Acquired (A) |5.Amount of |6.Dir |7.Nature of Indirect |
|Transaction| or Disposed of (D) | Securities |ect | Beneficial Ownership |
|Date |Code| | Beneficially |(D)or | |
| | | | A/| | Owned at |Indir | |
| | | Amount | D | Price | End of Year |ect(I)| |
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
Common Stock 12/29/ J 2,000,000 (A) <F1> 2,000,000 (I) Through Paul Harrison
97 Enterprises, Inc. ("PHE")
<F2>
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<CAPTION>
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Table II -- Derivative Securitites Acquired, Disposed of, or Beneficially Owned |
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1.Title of Derivative |2.Con |3. |4. |5.Number of De |6.Date Exer|7.Title and Amount |8.Price|9.Number |10.|11.Nature of|
Security |version |Transaction rivative Secu |cisable and| of Underlying |of Deri|of Deriva |Dir|Indirect |
|or Exer |Date |Code| rities Acqui |Expiration | Securities |vative |tive |ect|Beneficial |
|cise Pr | | | red(A) or Dis |Date(Month/| |Secu |Securities |(D)|Ownership |
|ice of | | | posed of(D) |Day/Year) | |rity |Benefi |or | |
|Deriva | | | |Date |Expir| | |ficially |Ind| |
|tive | | | | A/|Exer-|ation| Title and Number | |Owned at |ire| |
|Secu | | | | D |cisa-|Date | of Shares | |End of |ct | |
|rity | | | Amount | |ble | | | |Year |(I)| |
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Options to Buy <F1> 12/29/ J 1,600,000 (A) Immed. 4/10/ Common Stock 1,600, -- -- (I) --
97 98 000
Stock Options .53125 10/10/ A 750,000 (A) <F3> 10/10/ Common 750, -- -- (D) --
97 04 Stock 000
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Explanation of Responses:
<FN>
<F1> 2,000,000 shares of Issuer's common stock were acquired in exchange for
500,000 shares of the common stock of HALIS, Inc. In addition, an option
to acquire 1,600,000 shares of the Issuer's common stock for 400,000
shares of common stock of HALIS, Inc. was granted to PHE.
<F2> Mr. Harrison beneficially owns all of the shares PHE by virtue of his
position as President of this entity, holding the power to vote such
shares. Mr. Harrison, however, has a pecuniary interest of 46.42%
in PHE. Accordingly, Mr. Harrison disclaims a pecuniary interest in
1,071,600 shares of HealthWatch, Inc. stock held by PHE.
<F3> 350,000 options are immediately exercisable; 400,000 options are
exercisable on 10/10/2001, but are subject to acceleration if certain
performance goals are satisfied.
</FN>
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SIGNATURE OF REPORTING PERSON
/s/ Paul W. Harrison 2/16/98
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Paul W. Harrison
Signature of Reporting Person Date
