<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, 1996 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, 1996, there were outstanding 26,310,217 shares of Common Stock,
$.01 par value.
<PAGE>
UNITED MEDICORP, INC.
June 30, 1996
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets as of June 30, 1996
and December 31, 1995. . . . . . . . . . . . . . . . . . . . . . . . . 3
Consolidated Statements of Revenues and Expenses
for the Three Months Ended June 30, 1996 and 1995, and
for the Six Months Ended June 30, 1996 and 1995. . . . . . . . . . . . 4
Consolidated Statements of Cash Flows for the
Three Months Ended June 30, 1996 and 1995, and
for the Six Months Ended June 30, 1996 and 1995. . . . . . . . . . . . 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
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<PAGE>
UNITED MEDICORP, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
(UNAUDITED) (AUDITED)
JUNE 30, DECEMBER 31,
1996 1995
------------ ------------
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 94,563 $ 58,078
Restricted Cash 50,081 0
Accounts receivable, less allowance for
doubtful accounts of $6,369 and $7,493,
respectively 140,776 138,970
Notes receivable, less allowance for
doubtful accounts of $0 and $0,
respectively 0 214
Prepaid expenses and other 17,551 20,427
------------ ------------
TOTAL CURRENT ASSETS 302,971 217,689
PROPERTY AND EQUIPMENT (net) 159,451 200,996
OTHER ASSETS 16,337 17,373
------------ ------------
TOTAL ASSETS $ 478,760 $ 436,058
------------ ------------
------------ ------------
CURRENT LIABILITIES:
Payable to clients $ 50,081 $ 19,902
Trade accounts payable 114,844 48,230
Accrued expenses 140,359 141,501
Deferred revenue 0 15,959
Current portion of capital lease obligations 27,347 32,487
------------ ------------
TOTAL CURRENT LIABILITIES 332,630 258,079
LONG TERM LEASE OBLIGATION 120,591 138,565
DEFERRED CREDITS 31,434 31,434
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock, $.01 par value; 50,000,000 authorized
26,415,764 shares issued and outstanding at 6/30/96
and 12/31/95. 264,157 264,157
Less: 105,547 shares of treasury stock, at cost (221,881) (221,881)
Additional paid-in capital 18,552,343 18,552,341
Retained deficit (18,600,514) (18,586,637)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY (5,895) 7,980
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 478,760 $ 436,058
------------ ------------
------------ ------------
</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>
THREE MONTHS THREE MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED
JUNE 30, 1996 JUNE 30, 1995 JUNE 30, 1996 JUNE 30, 1995
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
REVENUES:
Fee income $ 464,960 $ 497,345 $ 928,425 $1,085,487
Installation income 0 0 6,900 0
Interest income 0 1,510 0 3,190
---------- ---------- ---------- ----------
TOTAL REVENUES 464,960 498,855 935,325 1,088,677
EXPENSES:
Salaries and benefits 280,206 403,030 585,281 798,343
Selling, general and
administrative 106,982 118,382 212,942 233,218
Professional fees 22,015 17,414 36,505 33,905
Office and equipment rental 24,472 19,623 52,774 35,760
Depreciation and amortization 26,603 26,784 52,636 58,265
Interest 4,422 3,225 8,990 10,657
Other 73 (98) 73 (98)
---------- ---------- ---------- ----------
TOTAL EXPENSES 464,773 588,360 949,202 1,170,050
---------- ---------- ---------- ----------
NET INCOME (LOSS) $ 187 $ (89,505) $ (13,877) $ (81,373)
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
NET INCOME (LOSS) PER SHARE $ 0.00 $ (0.00) $ (0.00) $ (0.00)
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
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 STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
THREE MONTHS THREE MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED
JUNE 30, 1996 JUNE 30, 1995 JUNE 30, 1996 JUNE 30, 1995
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
OPERATING ACTIVITIES:
Net income (loss) $ 187 $(89,505) $(13,877) $(81,373)
Adjustments to reconcile net loss to cash used in
operating activities:
Depreciation and amortization 26,607 26,784 52,636 58,265
(Increase) Decrease in restricted cash (50,081) 4,851 (50,081) 4,851
Decrease in purchased claims 0 37,721 0 37,721
(Increase) Decrease in accounts receivable 39,709 59,050 (1,806) (2,293)
Decrease in notes receivable 214 21,000 214 0
(Increase) Decrease in prepaid expenses and other (162) 368 2,876 7,575
Increase (Decrease) in payable to clients (10,861) (31,491) 30,179 (26,640)
Increase (Decrease) in accounts payable 43,937 35,923 66,614 14,861
Increase (Decrease) in accrued expenses 2,680 (19,944) (1,142) (2,304)
(Decrease) in deferred revenue (7,980) 0 (15,959) 0
(Increase) Decrease in deposits and other 0 (4,000) 0 8,180
Increase (Decrease) in deferred credits (5,562) (11,744) 0 (23,489)
-------- -------- -------- --------
NET CASH (USED) PROVIDED BY OPERATING ACTIVITIES 38,688 29,013 69,654 (4,646)
-------- -------- -------- --------
INVESTING ACTIVITIES:
Property and equipment, net (5,627) 2,298 (10,054) 435
-------- -------- -------- --------
NET CASH (USED) PROVIDED BY INVESTING ACTIVITIES (5,627) 2,298 (10,054) 435
-------- -------- -------- --------
FINANCING ACTIVITIES:
Common stock subscribed 0 0 0 100,000
(Increase) in restricted cash 0 0 0 (100,000)
Repayment of notes payable 0 0 0 (200,000)
Payments of capital lease obligations (8,524) 0 (23,115) 0
Other 0 0 0 0
-------- -------- -------- --------
NET CASH (USED) PROVIDED BY FINANCING ACTIVITIES (8,524) 0 (23,115) (200,000)
-------- -------- -------- --------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 24,537 31,311 36,485 (204,211)
CASH AND CASH EQUIVALENTS, beginning of period 70,026 115,711 58,078 351,233
-------- -------- -------- --------
CASH AND CASH EQUIVALENTS, end of period $ 94,563 $147,022 $ 94,563 $147,022
-------- -------- -------- --------
-------- -------- -------- --------
Additional Cash Flow Information
Cash paid for interest $ 3,137 $ 3,163 $ 6,420 $ 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. UMC 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, 1996 and
for the three and six month periods ended June 30, 1996 and 1995 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, 1995.
2. CAPITAL INFUSION AND GOING CONCERN
At June 30, 1996, the Company had $94,563 in unrestricted cash and cash
equivalents on hand. These funds along with forecasted revenues are projected
by management to be adequate to fund operations. 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 1996, 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. RESTRICTED CASH
Restricted Cash represents payments collected from insurance carriers and
patients on behalf of UMC customers. These funds are remitted to customers
by UMC on a weekly, semi-monthly, or monthly interval.
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<PAGE>
4. ACCOUNTS RECEIVABLE
Accounts receivable represents fees which have been billed to and are due
from customers. Included in the $140,766 of accounts receivable at June 30,
1996 are $28,048 related to services rendered to Healthcare Advisory Service
of Puerto Rico, Inc. ("HAS"). 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. The Company has not established any reserve for bad
debts related to receivables due from HAS.
5. PAYABLE TO CLIENTS
Payable To Clients includes payments collected from insurance carriers and
patients on behalf of UMC customers. These funds are remitted to customers
by UMC on a weekly, semi-monthly, or monthly interval.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
U.S. OPERATIONS: Late in the first quarter, the Company was notified by its
second largest customer, Mimbres Memorial Hospital ("MMH"), that it had
accepted an offer to be acquired by a hospital chain. The chain has available
the resources necessary to perform all of the billing and collection
functions which had been outsourced to UMC. Effective April 12, 1996, MMH
discontinued transmitting new claims to UMC for processing. MMH contributed
about $360K in fees during 1995, $90,700 in fees during the three months
ended March 31, 1996, and $25,231 in fees during the three months ended June
30, 1996.
During the three months ended June 30, 1996, the Company completed a contract
for billing and collection services with a regional provider of radiology
services. Once this contract is fully ramped up, management's estimate of
the monthly revenues from this new contract is in the range of $4K to $8K per
month.
PUERTO RICAN OPERATIONS: Most of the Company's revenue in Puerto Rico is
derived from HAS, which the Company serves as a subcontractor in regard to
HAS' contract for claims processing services to the Administracion de
Facilidades y Servicios de Salud ("AFASS"). Under this contract, the Company
has provided claims processing and follow up services to nine AFASS funded
clinics and one hospital in Yauco, Puerto Rico.
Early in the first quarter of 1996, the Company received $26,516 from a
progress billing for services to the Yauco Hospital. Under the contract
between HAS and AFASS, fees for the contract term from July 1, 1995 to June
30, 1996 are computed as a percentage of the amount by which total
collections exceed a "baseline" of $2,500,000. As of March 31, 1996, the
Company's projections based on collections and claims processed to date
indicated that the baseline would not be attained and therefore no fees would
be realizable from the Yauco contract
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<PAGE>
when the final reconciliation of total collections received and fees due is
completed in late 1997. Therefore, the Company reported the $26,516 payment
mentioned above in "payable to clients" on the balance sheet at March 31,
1996.
Effective June 30, 1996, the Company completed a Settlement And Termination
Agreement (the "Agreement") with HAS. Under the Agreement, on August 2, 1996
HAS paid to UMC a total of $172,000 representing the sum of $46,000 to
purchase UMC's interest in the claims inventory in process for the AFASS
clinics located at Coamo, Juana Diaz, Adjuntas, Jayuga, Villalba, and Santa
Isabel; $72,000 to purchase UMC's interest in the claims inventory in process
for the AFASS hospital located in Yauco; and $54,000 as additional
consideration for the Agreement. Income related to these cash payments will
be recognized in the month of August, 1996, when the cash was received. In
addition, HAS agreed to pay UMC $26,101 representing UMC's share of invoices
currently in process for payment by AFASS if and when payment for such
invoices is received from AFASS. Also, HAS agreed to pay UMC 50 percent of
the proceeds from the final settlement of HAS' contract with Humacao, if and
when such settlement is completed and payment is received from Humacao. The
estimated amount of the settlement with Humacao is $15,000, which would yield
$7,500 in cash to UMC. The Agreement included a mutual release by UMC and HAS
of any claims either party may have against the other, and an indemnification
of UMC by HAS against any claim by AFASS for a refund of fees paid. Based on
this indemnification, the Company recognized the $26,516 progress billing
described above as fee income during the month of June, 1996.
The Agreement also provided for the continuation of UMC's services to the
remaining three AFASS clinics and the AFASS hospital in Yauco (the "HAS
Customers") if, in UMC's sole discretion, the continuation of such services
is in UMC's best interest. Fees earned from the HAS Customers subsequent to
June 30, 1996 shall be allocated 90 percent to UMC and 10 percent to HAS,
instead of the 50/50 split in force prior to the effective date of the
Agreement. As of the date of this report, management has not yet determined
an estimate of the fees and costs associated with the continuation of
services to the HAS Customers. However, HAS has advised UMC management that
its contract with AFASS under which services to the HAS Customers are
provided may not be renewed for the fiscal year beginning July 1, 1996, and
if it is renewed, the contract will probably be canceled during the third
quarter of 1996.
During the second quarter, the Company's Puerto Rican operations generated
revenues of $65,885, direct expenses of $50,311 and positive gross margin of
$15,574. There can be no assurance that projected revenues from claims
generated by these customers will continue as forecasted or that the Company
will be successful in securing new customers in the Puerto Rican market.
There can be no assurance that the Company's past or future invoices to HAS
for claims processing services rendered in Puerto Rico will be paid as
expected. The Company has not established any reserve for bad debts related
to receivables due from HAS.
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<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>
1994 1995 1996
---------------- ---------------------------------- ----------------
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 32,280 38,779 46,972 46,021 43,161 47,249 48,280 46,861
BACKLOG 0 5,753 0 0 0 3,455 41 0
------ ------ ------ ------ ------ ------ ------ ------
TOTAL 32,280 44,532 46,972 46,021 43,161 50,704 48,321 46,861
GROSS AMOUNT OF
CLAIMS ACCEPTED FOR
PROCESSING ($000)
ONGOING 14,280 18,571 19,182 19,999 18,791 21,660 19,923 21,055
BACKLOG 0 3,362 0 0 0 1,269 17 0
------ ------ ------ ------ ------ ------ ------ ------
TOTAL 14,280 21,933 19,182 19,199 18,791 22,929 19,940 21,055
COLLECTIONS ($000)
ONGOING 7,336 7,851 9,270 9,883 9,613 8,694 9,020 8,257
BACKLOG 194 130 272 159 28 60 70 6
------ ------ ------ ------ ------ ------ ------ ------
TOTAL 7,530 7,981 9,542 10,042 9,641 8,754 9,090 8,263
FEES EARNED ($000)
ONGOING 332 371 549 482 449 447 467 465
BACKLOG 14 15 39 15 2 3 3 0
------ ------ ------ ------ ------ ------ ------ ------
TOTAL 346 386 588 497 451 450 470 465
</TABLE>
For Ongoing claims, there is typically a time lag of approximately 15 to 45
days from contract execution to computer hardware installation and training
of personnel. During this period, Company personnel survey the customer's
existing operations and prepare for implementation. Following training of
personnel, the customer begins transmitting claims 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, except in Puerto
Rico, where commercial payors often delay payment on claims for up to two
years.
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<PAGE>
QUARTERLY INFORMATION: Fee income decreased $32,385 or 6.5 percent, from
$497,345 for the three months ended June 30, 1995 to $464,960 for the three
months ended June 30, 1996. The decrease was due to decreased revenue of
$85,325 from domestic operations and an increase of $52,940 from Puerto Rican
operations.
For domestic operations, fee income from "Ongoing" claims processing,
management and collection services decreased by 10 percent from $406,565 for
the three months ended June 30, 1995 to $367,811 for the three months ended
June 30, 1996 due primarily to reduced revenue from MMH. Backlog collection
fees decreased by 98 percent, from $15,369 for the three months ended June
30, 1995 to $304 for the three months ended June 30, 1996 due primarily to
reduced backlog fees from MMH. Fees from UMC's UMClaimPros interim staffing
service decreased by 78 percent from $61,962 for the three months ended June
30, 1995 to $13,516 for the three months ended June 30, 1996. Patient
billing fees increased from $0 for the three months ended June 30, 1995 to
$12,271 for the three months ended June 30, 1996. Repricing fees increased
from $0 for the three months ended June 30, 1995 to $3,729 for the three
months ended June 30, 1996.
For Puerto Rican operations, fees from clinics increased by 170 percent, from
$12,945 for the three months ended June 30, 1995 to $27,995 for the three
months ended June 30, 1996. Physician fees increased from $0 for the three
months ended June 30, 1995 to $3,395 for the three months ended June 30,
1996. Hospital fees increased from $0 during the three months ended June 30,
1995 to $34,496 during the six months ended June 30, 1996.
Salaries and benefits for the first quarter of 1996 decreased $122,825, or 30
percent, from $403,030 for the three months ended June 30, 1995 to $280,206
for the three months ended June 30, 1996. Total headcount decreased from 55
at June 30, 1995 to 34 at June 30, 1996, excluding temporary and part-time
employees.
Selling, general and administrative expenses decreased $11,400, or 10
percent, from $118,381 for the three months ended June 30, 1995 to $106,982
for the three months ended June 30, 1996, due primarily to reduced expenses
for the Company's Puerto Rico operations and reduced contract clerical
expenses.
Professional fees increased by $4,601, or 26 percent, from $17,414 in the
second quarter of 1995 to $22,015 in the second quarter of 1996, primarily
due to expenses incurred to comply with new SEC requirements for electronic
filing of forms 10-K and 10-Q.
Rental expense increased $4,849, or 25 percent, from $19,623 in the second
quarter of 1995 to $24,472 in the second quarter of 1996, due to the
expiration of deferred credits on the lease ending July 31, 1995 for the
office space in Dallas, Texas, and increased rent for the office space in
Ponce, Puerto Rico which began in May, 1995.
Interest expense increased by $1,198, or 37 percent, from $3,225 in the
second quarter of 1995 to $4,422 in the second quarter of 1996, due to
interest related to leased AS/400 equipment.
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<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
SOURCES OF CAPITAL: Operating funds through March 31, 1995 have been derived
primarily from the issuance of Common Stock ($18.8 million).
CAPITAL EXPENDITURES: During the second quarter of 1996, the Company did not
make any significant capital expenditures. As of June 30, 1996, the Company
had no significant outstanding commitments for capital expenditures.
LIQUIDITY OUTLOOK: At June 30, 1996, the Company had $94,563 in unrestricted
cash and cash equivalents and $140,776 in net accounts receivable. The
Company generated positive cash flow of $24,537 during the second quarter of
1996 compared to 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. The
Company has not established any reserve for bad debts related to receivables
due from HAS.
During the second quarter of 1996, the Company attempted to complete an
offering of a new class of preferred stock to a number of investors,
including British investors who had previously invested in private placements
of the Company's Common Stock. The offering was not successful.
Although the Company generated positive cash flow during the second quarter
of 1996, 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 upon which such capital might be made available. Additionally, UMC has
incurred cumulative losses of $18,600,514 since inception. These factors
raise substantial doubt as to the Company's ability to continue as a going
concern.
SUBSEQUENT EVENT: The Company completed a Settlement And Termination
Agreement with HAS effective June 30, 1996, pursuant to which the Company
received a cash payment in the amount of $172,000 on August 2, 1996. Income
from this Settlement And Termination Agreement will be recognized and
reported in August, 1996, the month in which cash was received.
-11-
<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.
-12-
<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 13, 1996
---------------------------------
Peter W. Seaman, President and
Chief Executive Officer
(Principal Accounting Officer)
-13-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> APR-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 144,644
<SECURITIES> 0
<RECEIVABLES> 140,776
<ALLOWANCES> 6,369
<INVENTORY> 0
<CURRENT-ASSETS> 302,971
<PP&E> 159,451
<DEPRECIATION> 26,603
<TOTAL-ASSETS> 478,760
<CURRENT-LIABILITIES> 332,630
<BONDS> 0
0
0
<COMMON> 264,157
<OTHER-SE> (227,776)
<TOTAL-LIABILITY-AND-EQUITY> 478,760
<SALES> 0
<TOTAL-REVENUES> 464,960
<CGS> 0
<TOTAL-COSTS> 464,773
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,422
<INCOME-PRETAX> 187
<INCOME-TAX> 0
<INCOME-CONTINUING> 187
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 187
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
