<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended
June 30, 1995 Commission File No.1-10418
UNITED MEDICORP, INC.
(Exact name of registrant as specified in charter)
DELAWARE 75-2217002
(State or other jurisdiction of (IRS employer identification no.)
incorporation or organization)
10210 N. CENTRAL EXPRESSWAY, #400
DALLAS, TEXAS 75231
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code:
214/691-2140
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X No
--- ---
As of July 1, 1995, there were outstanding 26,310,217 shares of Common Stock,
$.01 par value.
<PAGE>
UNITED MEDICORP, INC.
June 30, 1995
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<S> <C>
Consolidated Balance Sheet as of June 30, 1995
and December 31, 1994 .................................................... 3
Consolidated Statement of Revenues and Expenses
for the Three Months Ended June 30, 1995 and 1994, and
for the Six Months Ended June 30, 1995 and 1994 .......................... 4
Consolidated Statement of Cash Flows for the
Three Months Ended June 30, 1995 and 1994, and
for the Six Months Ended June 30, 1995 and 1994 .......................... 5
Notes to Consolidated Financial Statements ............................... 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations ...................................... 7
PART II. OTHER INFORMATION
Item 1. Legal Proceedings ................................................ 12
Item 2. Changes in Securities ............................................ 12
Item 3. Default Upon Senior Securities ................................... 12
Item 4. Submission of Matters to a Vote of Security Holders .............. 12
Item 5. Other Information ................................................ 12
Item 6. Exhibits and Reports on Form 8-K ................................. 12
SIGNATURES ................................................................. 13
</TABLE>
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<PAGE>
UNITED MEDICORP, INC.
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
(UNAUDITED) (AUDITED)
JUNE 30, DECEMBER 31,
1995 1994
------------ ------------
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $147,022 $351,233
Restricted cash 0 4,851
Purchased claims 0 37,721
Accounts receivable (net) 156,885 154,592
Notes receivable (net) 12,214 12,214
Prepaid expenses and other 17,055 24,630
------------ ------------
TOTAL CURRENT ASSETS 333,176 585,241
PROPERTY AND EQUIPMENT (net) 264,636 322,300
OTHER ASSETS:
Goodwill 4,317 5,353
Deposits 14,092 22,272
------------ ------------
TOTAL ASSETS $616,221 $935,166
============ ============
CURRENT LIABILITIES:
Payable to clients $0 $26,640
Trade accounts payable 78,118 63,257
Accrued expenses 135,158 137,462
Notes payable 0 200,000
Current portion of capital lease obligations 28,061 18,576
TOTAL CURRENT LIABILITIES 241,337 445,935
LONG TERM LEASE OBLIGATION 154,702 164,187
DEFERRED CREDITS 7,830 31,319
STOCKHOLDERS' EQUITY
Common stock, $.01 par value; 50,000,000 authorized,
26,415,764 shares issued at 6/30/95 and 12/31/94 264,157 264,157
Less: 105,547 shares of treasury stock, at 6/30/95
and 12/31/94, at cost (221,881) (221,881)
Additional paid-in capital 18,552,341 18,552,341
Retained deficit (18,382,265) (18,300,892)
----------- ------------
TOTAL STOCKHOLDERS' EQUITY 212,352 293,725
----------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $616,221 $935,166
=========== ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
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<PAGE>
UNITED MEDICORP, INC.
CONSOLIDATED STATEMENT OF REVENUES AND EXPENSES
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED
JUNE 30, 1995 JUNE 30, 1994 JUNE 30,1995 JUNE 30, 1994
------------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
REVENUES:
Fee income $497,345 $298,008 $1,085,487 $598,076
Interest income 1,510 4,851 3,190 10,848
-------- -------- ---------- --------
TOTAL REVENUES 498,855 302,859 1,088,677 608,924
EXPENSES:
Salaries and benefits 403,030 268,343 798,343 525,002
Selling, general and administrative 118,382 183,517 233,218 335,029
Professional fees 17,414 29,030 33,905 68,235
Office and equipment rental 19,623 15,955 35,760 33,185
Depreciation and amortization 26,784 23,932 58,265 50,317
Interest 3,225 3,011 10,657 6,576
Other (98) 2,174 (98) 15,483
-------- --------- --------- ---------
TOTAL EXPENSES 588,360 525,962 1,170,050 1,033,827
-------- --------- --------- ---------
NET LOSS ($89,505) ($223,103) ($81,373) ($424,903)
======== ========= ========= =========
NET LOSS PER SHARE ($0.00) ($0.01) ($0.00) ($0.02)
======== ========= ========= =========
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING 26,310,217 23,940,218 26,310,217 23,940,218
========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
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<PAGE>
UNITED MEDICORP, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED
JUNE 30, 1995 JUNE 30, 1994 JUNE 30, 1995 JUNE 30, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
OPERATING ACTIVITIES:
Net (loss) $(89,505) $(223,103) $ (81,373) $(424,903)
Adjustments to reconcile net loss to cash used in
operating activities:
Depreciation and amortization 26,784 23,932 58,265 50,317
Loss on disposal of assets 0 2,181 0 15,515
Decrease in restricted cash 4,851 0 4,851 33,108
Decrease in purchased claims 37,721 0 37,721 0
(Increase) Decrease in accounts receivable 59,050 97,834 (2,293) 0
Decrease in notes receivable 21,000 0 0 0
(Increase) Decrease in prepaid expenses and other 368 (1,980) 7,575 1,369
(Decrease) in payable to clients (31,491) 0 (26,640) 0
Increase (Decrease) in accounts payable 35,923 (28,647) 14,861 16,678
(Decrease) in accrued expenses (19,944) (18,147) (2,304) (64,355)
Increase (Decrease) in deposits and other (4,000) 0 8,180 0
(Decrease) in deferred credits (11,744) (11,745) (23,489) (23,489)
-------- --------- --------- ---------
NET CASH (USED) PROVIDED BY OPERATING ACTIVITIES 29,013 (159,675) (4,646) (395,760)
-------- --------- --------- ---------
INVESTING ACTIVITIES:
Property and equipment, net 2,298 (39,437) 435 (100,518)
-------- --------- --------- ---------
NET CASH (USED) PROVIDED BY INVESTING ACTIVITIES 2,298 (39,437) 435 (100,518)
-------- --------- --------- ---------
FINANCING ACTIVITIES:
Common stock subscribed 0 100,000 100,000 100,000
(Increase) in restricted cash 0 (100,000) (100,000) (100,000)
Repayment of notes payable 0 0 (200,000) (882)
Payments of capital lease obligations 0 (9,017) 0 (17,593)
Other 0 287 0 287
-------- --------- --------- ---------
NET CASH (USED) PROVIDED BY FINANCING ACTIVITIES 0 (8,730) (200,000) (18,188)
-------- --------- --------- ---------
INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS 31,311 (207,842) (204,211) (514,466)
CASH AND CASH EQUIVALENTS, beginning of period 115,711 540,694 351,233 847,318
-------- --------- --------- ---------
CASH AND CASH EQUIVALENTS, end of period $147,022 $ 332,852 $ 147,022 $ 332,852
======== ========= ========= =========
Additional Cash Flow Information
Cash paid for interest $ 0 $ 3,163 $ 11,611 $ 6,773
</TABLE>
The accompanying notes are an integral part of these financial statements.
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<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
United Medicorp, Inc. (the "Company" or "UMC") is a publicly held
company traded on the over the counter market under the symbol
UMCI which was founded in March, 1989 to provide medical
insurance claims management services to healthcare providers
throughout the United States.
The accompanying consolidated financial statements as of June 30,
1995 and for the three and six month periods ended June 30, 1995
and 1994 are unaudited. However, in the opinion of management,
all adjustments consisting of normal recurring adjustments
necessary for the fair presentation of financial position,
results of operations, and cash flows for the periods shown have
been made, except the consolidated financial statements do not
include any adjustments that might result from the uncertainty
described in Note 2 below. Certain information and footnote
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have
been omitted pursuant to the rules and regulations of the
Securities and Exchange Commission, although management believes
that the disclosures contained herein are adequate to make the
information presented not misleading. These financial statements
should be read in conjunction with the financial statements and
the notes thereto included in the Company's Annual Report on Form
10-K for the year ended December 31, 1994.
2. CAPITAL INFUSION AND GOING CONCERN
At June 30, 1995, the Company had $147,022 in cash and cash
equivalents and $156,885 in net accounts receivable. The Company
had positive cash flow of $31,311 during the second quarter of
1995. These funds along with forecasted revenues are projected
by management to be adequate to fund current levels of operations
through 1995. The Company continues to pursue new business
primarily through direct contacts with prospective customers in
an effort to generate additional revenues. There is no assurance
that revenues generated from existing customers will continue as
forecasted or that the Company will be successful in securing new
customers or sources of revenue before the Company's remaining
capital is depleted. In the event such new customers or sources
of revenue are not secured, management projects that cash flow
from operations may not be sufficient to provide for the
Company's working capital needs beyond 1995, in which case the
Company will be required to raise additional capital in order to
continue operating in its present form. Due to the Company's
history of operating losses there can be no assurance that
additional investment capital can be raised in the event the
Company is not successful in securing new customers or new
sources of revenue.
3. ACCOUNTS RECEIVABLE
Accounts receivable represents fees which have been billed to and
are due from customers. Included in the $156,885 of accounts
receivable at June 30, 1995 are $18,024 related to services
rendered to Healthcare Advisory Service of Puerto Rico ("HAS").
As of the date of this report,
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<PAGE>
HAS cash reserves are zero. The ability of HAS to pay UMC for services
rendered is contingent upon receipt by HAS of payment from its customers for
services rendered. There can be no assurance that such payment will be
received, or if it will be received within the timeframe anticipated by HAS
and UMC management. However, invoice payments totalling $114,711 have been
made by HAS to UMC during the first half of 1995. The Company has not
established any reserve for bad debts related to receivables due from HAS.
4. NOTES PAYABLE
On September 30, 1994, the Company signed a promissory note to
borrow $200,000 from an offshore bank. The note bore interest at
a rate of 15% per annum and was due and payable on March 31,
1995. Payment of the note was secured by the pledge of the
Company's assets. The funds borrowed were used in the Company's
Medical Claims Purchase program. This note was repaid in full
with interest in two installments on January 30 and February 24,
1995.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
GENERAL: During the second quarter, the Company placed a total
of ten UMClaimPros on interim assignments in the business offices
of healthcare providers. UMClaimPros revenue for the second
quarter was $61,962 as compared to first quarter revenue of
$12,582. The gross margin on UMClaimPros services is
considerably less than the gross margin on UMC's other services.
On June 30, 1995, the Company completed a UMClaimPros assignment
at a local hospital. This assignment produced 76 percent of the
UMClaimPros revenue during the second quarter. There can be no
assurance that the Company will be successful in securing new
customers during the third quarter to replace the UMClaimPros
revenue recognized during the second quarter.
On January 30 and February 24, 1995, the Company made two
installments to repay in full with interest the $200,000
promissory note from an offshore bank.
During the fourth quarter of 1994, the Company initiated claims
processing operations for a rural hospital ("RH") located in the
southwestern United States. The Company's services to RH include
Advance Funding, "Backlog" and "Ongoing" claims management
services. Each of these services is governed by a separate
contract between RH and UMC. During the three months ended June
30, 1995, the Company billed and collected Advance Funding fees
of $504, Backlog fees of $15,369, and Ongoing fees of $80,510
under the RH contracts.
During the fourth quarter of 1994, the management of RH advised
UMC that RH intended to discontinue using the Advance Funding
service provided by UMC. In addition, as described in the
Company's Annual Report on Form 10K, Backlog contracts involve a
one-time placement of claims which result in non-recurring
revenue to UMC. As of June 30, 1995, most of the
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<PAGE>
backlog claims RH had placed with UMC pursuant to the Backlog contract had
been either collected or denied. Therefore, management believes that Backlog
fees from RH in future quarters will decline significantly and/or cease
altogether, absent a second placement of Backlog claims from RH. The Ongoing
contract with RH expires September 30, 1995. There can be no assurance that
this contract will be renewed, or if it is renewed, that the contract will
generate additional revenue as anticipated by UMC management.
The financial condition of RH is such that the hospital's vendors, many of
whom have not been paid for an extended period of time, could petition the
courts to place RH under the supervision of a bankruptcy trustee. In the
alternative, the Board of Trustees of RH could determine at any time to
discontinue operations. Either of these events could have a significant
negative impact on the Company's financial results and cash flow in the
future.
PUERTO RICAN OPERATIONS: During the second quarter, the Company's Puerto
Rican operations generated revenues of $12,945, direct expenses of $59,396
and an operating loss of $46,451. The Company's principal source of revenue
in Puerto Rico is a contract between Healthcare Advisory Service of Puerto
Rico ("HAS") and a government agency known as "AFASS". Under this
contract, UMC provides claims processing services to a government funded
hospital ("GH") and four government funded clinics. Under the AFASS
contract, the Company was responsible for processing all claims generated by
GH with dates of service between October 1, 1994 and June 30, 1995. UMC's
fees for services rendered to GH during this period are 30% of the first
$500,000 collected over a "baseline" of $1.875 million, 25% of the next
$500,000 collected over the baseline, 20% of the next $500,000, 15% of the
next $500,000 and 10% of the next $500,000 up to an aggregate of $2.5 million
in over baseline collections. To date UMC has recognized revenues of
$106,466, which were computed based on projected collections of approximately
$2.23 million. Management's projection of total collections on the GH
contract for the nine month period ending June 30, 1995 is between $2.3 and
$2.4 million. However, due to a number of uncertainties associated with this
projection, management decided not to recognize any revenue from the GH
contract during the second quarter.
On June 24, 1995, the AFASS contract was amended to allow the
continuation of the Company's services to GH and the four clinics
referred to above for an undefined period beyond June 30, 1995.
In addition, the Company received the right to process claims for
five additional clinics as part of this contract amendment.
There can be no assurance that the Company's invoices to HAS for
claims processing services rendered in Puerto Rico will be paid
as expected. However, invoice payments totalling $114,711 have
been made by HAS to UMC during the first half of 1995. The
Company has not established any reserve for bad debts related to
receivables due from HAS.
At June 30, the Company had short term loans outstanding to HAS
in the amount of $12,000. Interest on these loans shall accrue
at the rate of 1.25 percent per month until the loans are repaid.
Principal and accrued interest payments are scheduled to be
repaid during 1995. Payment of these notes is secured by the
pledge of HAS' interest in certain equipment located at HAS'
customer sites, and HAS' interest in all claims processing
contracts held by HAS.
SUBSEQUENT EVENTS: On July 21, the Company renewed the lease on
its existing office space with approximately 8,200 square feet
located in Dallas, Texas. The lease term was extended until
January 31, 2001.
-8-
<PAGE>
The following table sets forth for each period indicated the
volume and gross dollar amount of insurance claims received and
fees recognized for each of the Company's two principal services.
In general, collections on most healthcare providers' new claims
("Ongoing") tend to average about 25 to 80 percent of the gross
claim amount. Backlog collection ratios range from 0 to about 40
percent of the aggregate gross claim amount because many backlog
claims have already been paid or denied by the insurance carriers
prior to submission of the claims to UMC. For these previously
paid claims, UMC often charges an administrative fee which is
less than a collection fee.
PROCESSING VOLUME AND FEES
<TABLE>
<CAPTION>
1993 1994 1995
---- ---- ----
THIRD FOURTH FIRST SECOND THIRD FOURTH FIRST SECOND
QUARTER QUARTER QUARTER QUARTER QUARTER QUARTER QUARTER QUARTER
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NUMBER OF CLAIMS
ACCEPTED FOR
PROCESSING
ONGOING 29,310 30,829 24,690 32,552 32,280 38,779 46,972 46,021
BACKLOG 3,700 569 553 48 0 5,753 0 0
------ ------ ------ ------ ------ ------ ------ ------
TOTAL 33,010 31,398 25,243 32,600 32,280 44,532 46,972 46,021
GROSS AMOUNT OF
CLAIMS ACCEPTED FOR
PROCESSING ($000)
ONGOING 15,288 15,721 12,502 14,935 14,280 18,571 19,182 19,999
BACKLOG 2,448 678 1,067 207 0 3,362 0 0
------ ------ ------ ------ ------ ------ ------ ------
TOTAL 17,736 16,399 13,569 15,142 14,280 21,933 19,182 19,999
COLLECTIONS ($000)
ONGOING 6,869 6,939 6,277 6,516 7,336 7,851 9,270 9,883
BACKLOG 1,413 756 375 136 194 130 272 159
------ ------ ------ ------ ------ ------ ------ ------
TOTAL 8,282 7,695 6,652 6,652 7,530 7,981 9,542 10,042
FEES EARNED ($000)
ONGOING 313 308 278 290 332 371 549 482
BACKLOG 77 37 22 8 14 15 39 15
------ ------ ------ ------ ------ ------ ----- ------
TOTAL 390 345 300 298 346 386 588 497
</TABLE>
For Ongoing claims, there is typically a time lag of
approximately 30 to 45 days from contract execution to computer
hardware installation and training of customer personnel. During
this period, Company personnel survey the customer's existing
operations and prepare for installation. Following installation
and training of the customer's personnel, the customer begins
entering claims and transmitting them to the Company. There is
usually a time lag of 30 to 90 days between transmission of a
claim to a third party payor and collection of a claim from that
payor.
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<PAGE>
QUARTERLY INFORMATION: Total fees earned increased $199,337, or 67
percent, from $298,008 for the three months ended June 30, 1994 to
$497,345 for the three months ended June 30, 1995. The increase was due
to revenues from Puerto Rican operations, increased revenues from
domestic customers and UMClaimPros placements. Other income decreased
$3,341, from $4,851 for the three months ended June 30, 1994 to $1,510
for the three months ended June 30, 1995.
Salaries and benefits for the second quarter of 1995 increased $134,687,
or 50 percent, from $268,343 for the three months ended June 30, 1994 to
$403,030 for the three months ended June 30, 1995. Total headcount
increased from 26 at June 30, 1994 to 55 at June 30, 1995, excluding
temporary and part-time employees.
Selling, general and administrative expenses decreased $65,135, or 35
percent, from $183,517 for the three months ended June 30, 1994 to
$118,382 for the three months ended June 30, 1995, due to decreases in
temporary labor, dealer commission, system usage fees, maintenance and
travel expenses offset by increases in telephone, supplies and postage
expenses as a result of increased claims volume.
Professional fees decreased by $11,616, or 40 percent, from $29,030 in
the second quarter of 1994 to $17,414 in the second quarter of 1995, due
to lower consulting fees.
Rental expense increased $3,668, or 22 percent, from $15,955 in the
second quarter of 1994 to $19,623 in the second quarter of 1995, due to
the opening of the UMC office in Ponce, Puerto Rico on May 15, 1995.
Depreciation and amortization increased $2,852, or 11 percent, from
$23,932 in the second quarter of 1994 to $26,784 in the second quarter
of 1995, due primarily to fixed asset additions during 1994, including
the lease of the new IBM AS/400 on December 29, 1994.
Interest expense increased by $214, or 7 percent, from $3,011 in the
second quarter of 1994 to $3,225 in the second quarter of 1995.
Other expenses decreased $2,272 in the second quarter of 1995 as
compared to the second quarter of 1994, due to losses on the disposal of
assets during the second quarter of 1994.
SIX MONTH INFORMATION: Total fees earned increased $487,411, or 81
percent, from $598,076 for the six months ended June 30, 1994 to
$1,085,487 for the six months ended June 30, 1995. The increase was due
to revenues from domestic customers, the start up of Puerto Rican
operations and revenues generated by UMClaimPros placements. Other
income decreased $7,658, from $10,848 for the six months ended June 30,
1994 to $3,190 for the six months ended June 30, 1995.
Salaries and benefits for the first half of 1995 increased $273,341, or
52 percent, from $525,002 for the six months ended June 30, 1994 to
$798,343 for the six months ended June 30, 1995. Total headcount
increased from 26 at June 30, 1994 to 55 at June 30, 1995, excluding
temporary and part-time employees.
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<PAGE>
Selling, general and administrative expenses decreased $101,811,
or 30 percent, from $335,029 for the six months ended June 30,
1994 to $233,218 for the six months ended June 30, 1995, due to
decreases in temporary labor, recruiting, dealer commission,
travel and maintenance expenses offset by an increase in
telephone expenses as a result of increased claims volume.
Professional fees decreased by $34,330, or 50 percent, from
$68,235 in the first half of 1994 to $33,905 in the first half of
1995, due to lower consulting, legal and stock related expenses.
Rental expense increased $2,575, or 7 percent, in the second half
of 1995 as compared to the second half of 1994, due to the
opening of the office in Ponce, Puerto Rico on May 15, 1995.
Depreciation and amortization increased $7,948, or 15 percent,
from $50,317 in the first half of 1994 to $58,265 in the first
half of 1995, due primarily to fixed asset additions during 1994,
including the lease of the new IBM AS/400 on December 29, 1994.
Interest expense increased by $4,081, or 62 percent, from $6,576
in the first half of 1994 to $10,657 in the first half of 1995.
Other expenses decreased $15,581 in the first half of 1995 as
compared to the first half of 1994, due to losses on the disposal
of assets during the first half of 1994.
LIQUIDITY AND CAPITAL RESOURCES
SOURCES OF CAPITAL: Operating capital through June 30, 1995 has
been derived primarily from the issuance of Common Stock ($18.8
million).
CAPITAL EXPENDITURES: During the second quarter of 1995 the
Company purchased additional office equipment and software with
an original cost of $5,551. These expenditures were used to
purchase a facsimile machine for the Puerto Rico office and
modify a custom software program.
LIQUIDITY OUTLOOK: At June 30, 1995, the Company had $147,022 in
cash and cash equivalents and $156,885 in net accounts
receivable. The Company had positive cash flow of $31,311 during
the second quarter of 1995.
There can be no assurance that the Company's invoices to HAS for
claims processing services rendered in Puerto Rico will be paid
as expected. However, invoice payments totalling $114,711 have
been made by HAS to UMC during the first half of 1995. The
Company has not established any reserve for bad debts related to
receivables due from HAS.
While management believes that the Company could attain
profitability before available operating capital is consumed,
there are considerable risks, including primarily the need for
additional sustainable revenues, that additional capital will be
needed. There can be no assurance that such capital will be
available, or of the terms on which such capital might be made
available. Additionally, UMC has incurred cumulative losses of
$18,382,265 since inception. These factors raise substantial
doubt about the Company's ability to continue as a going concern.
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<PAGE>
UNITED MEDICORP, INC.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is the defendant in a lawsuit filed on March 2, 1995
by a former employee of the Company. The lawsuit charges the
Company with wrongful discharge. The former employee seeks
unspecified past and future economic loss, damages, exemplary
damages, reinstatement, attorney's fees and interest. The
plaintiff has requested a trial by jury. Management believes
this lawsuit to be without merit and intends to vigorously defend
against the claim.
ITEM 2. CHANGES IN SECURITIES
Not applicable.
ITEM 3. DEFAULT UPON SENIOR SECURITIES
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
ITEM 5. OTHER INFORMATION
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Not applicable.
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<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this Quarterly Report to be
signed on its behalf by the undersigned, thereunto duly
authorized.
UNITED MEDICORP, INC.
(REGISTRANT)
By: /s/ Peter W. Seaman Date: August 10, 1995
------------------------------ ---------------
Peter W. Seaman, President and
Chief Executive Officer
By: /s/ Ross Spinazzola Date: August 10, 1995
------------------------------ ---------------
Ross Spinazzola, Treasurer
(Principal Accounting Officer)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 147,022
<SECURITIES> 0
<RECEIVABLES> 156,885
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 333,176
<PP&E> 264,636
<DEPRECIATION> 58,265
<TOTAL-ASSETS> 616,221
<CURRENT-LIABILITIES> 241,337
<BONDS> 0
<COMMON> 264,157
0
0
<OTHER-SE> (51,805)
<TOTAL-LIABILITY-AND-EQUITY> 616,212
<SALES> 0
<TOTAL-REVENUES> 1,088,677
<CGS> 0
<TOTAL-COSTS> 1,170,050
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 10,657
<INCOME-PRETAX> (81,373)
<INCOME-TAX> 0
<INCOME-CONTINUING> (81,373)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (81,373)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
