SECURITIES AND EXCHANGE COMMISSION
                       Washington, D.C. 20549
                           
                           FORM 10-QSB/A
                      
(Mark One)
[X] Quarterly Report Pursuant to Section 13 or 15(d) of The Securities 
Exchange Act of  1934

For the quarterly period ended June 30, 1996
                                 OR
[  ] Transition Report Under Section 13 or 15 (d) of the Securities Exchange 
Act of 1934
     For the transition period from _____ to _____

                    Commission File Number 0-25136

                    NEURO NAVIGATIONAL CORPORATION
    (Name of Small Business Issuer as specified in its charter)

 Delaware                           33-0464753 
 (State or other jurisdiction of   (I.R.S. Employer Identification No.)
 incorporation or organization)

              3180 Pullman Street, Costa Mesa, California 92626
             (Address of principal executive offices) (Zip Code)

                  Issuer's telephone number  (714) 557-9111

Check whether the issuer (1) has filed all reports required 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 [   ]
               
There were 9,933,733 shares of the issuer's Common Stock 
outstanding as of July 17, 1996.

<PAGE>
<TABLE>      
                 PART I - FINANCIAL INFORMATION

                   Item 1. Financial Statements

                   NEURO NAVIGATIONAL CORPORATION
                    CONSOLIDATED BALANCE SHEETS
                            
<CAPTION>
                                        June 30,    December 31,
                                          1996         1995
                                      (Unaudited)
                                      ___________   ____________
<S>                                       <C>            <C>
ASSETS

CURRENT ASSETS:       
   CASH AND CASH EQUIVALENTS               $23,108      $280,115 
   ACCOUNTS  RECEIVABLE-NET                511,577       390,728
   INVENTORY                             1,417,991     1,270,311
   PREPAID EXPENSES                         34,159        66,451 
                                        __________    __________
  TOTAL CURRENT ASSETS                   1,986,835     2,007,605 
       
FURNITURE & EQUIPMENT (NET)                183,665       229,139
DEPOSITS                                    98,398        90,248 
                                        __________    __________  
  TOTAL ASSETS                          $2,268,898    $2,326,992 
                                        ==========    ==========

LIABILITIES, REDEEMABLE STOCK AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES:       
   OBLIGATION UNDER CAPITAL LEASE, 
   CURRENT PORTION                         $1,905        $1,759
   NOTES PAYABLE - BALLARD MEDICAL      1,635,000   
   ACCOUNTS PAYABLE & ACCRUED EXPENSES    383,302       594,149 
                                        _________       _______
         TOTAL CURRENT LIABILITIES      2,020,207       595,908
   OBLIGATION UNDER CAPITAL LEASE, 
         NET OF CURRENT PORTION             5,100         6,090
                                        _________     _________
               TOTAL LIABILITIES        2,025,307       601,998
                                        _________     _________
CONVERTIBLE REDEEMABLE PREFERRED STOCK, 
   $0.01 PAR VALUE, $10 PER SHARE 
   LIQUIDATION VALUE, 1,000,000 SHARES 
   AUTHORIZED, 200,000 SHARES ISSUED 
   AND OUTSTANDING                      1,867,795     1,867,795
                                        _________     _________
                                        1,867,795     1,867,795
                                        _________     _________
STOCKHOLDERS' DEFICIT:       
   COMMON STOCK, $ 0.001 PAR VALUE, 
     40,000,000 SHARES AUTHORIZED, 
     9,933,733 OUTSTANDING                  9,934        9,934  
   ADDITIONAL PAID IN CAPITAL          13,847,536   13,848,284
   ACCUMULATED DEFICIT                (15,481,674) (14,001,019)
                                      ___________  ____________
     TOTAL STOCKHOLDERS' DEFICIT      (1,624,204)     (142,801)
                                      ___________  ____________
TOTAL LIABILITIES, REDEEMABLE STOCK 
    AND STOCKHOLDERS' DEFICIT          $2,268,898    $2,326,992 
                                      ===========    ==========
<FN>
The accompanying notes are an integral part of the financial statements
                                2 of 29 
</TABLE>
<PAGE>
<TABLE>
                         NEURO NAVIGATIONAL CORPORATION
                      CONSOLIDATED STATEMENTS OF OPERATIONS
         FOR THE SIX MONTHS AND THREE MONTHS ENDED JUNE 30, 1996 AND 1995
                                  (UNAUDITED)

<CAPTION>
                               THREE MONTHS            SIX MONTHS
                                   ENDED                   ENDED
                                  JUNE 30                 JUNE 30, 
                              1996       1995        1996        1995
                           _________   ________   __________   __________
<S>                           <C>        <C>        <C>           <C>
SALES                       $557,613   $526,653   $1,306,924   $1,005,267
COST OF GOODS SOLD           341,935    450,956      890,416      830,575
                             _______    _______    _________    _________
                             215,678     75,697      416,508      174,692
                             _______    _______    _________    _________
OPERATING EXPENSES:           
   RESEARCH AND DEVELOPMENT  223,451    363,816      523,374      784,369
   SALES AND MARKETING       457,357    351,873      885,090      685,840
   GENERAL AND ADMIN         197,023    284,212      444,852      530,122
                             _______    _______    _________    _________
                             877,831    999,901    1,853,316    2,000,331
                             _______    _______    _________    _________
OTHER  (INCOME) EXPENSE:           
   INTEREST INCOME, NET       35,028     (3,049)      41,448      (15,972)
   OTHER                      (1,201)     2,336       (1,201)     (26,799)
                              ______     _______     ________     ________
                              33,827       (713)      40,247      (42,771)
                              ______     _______     ________     ________
LOSS BEFORE PROVISION
   FOR INCOME TAXES         (695,980)  (923,491)  (1,477,055)  (1,782,868)
PROVISION FOR STATE
   INCOME TAXES                  600          0        3,600        3,350
                           __________ __________  ___________ ____________
NET LOSS                   ($696,580) ($923,491)  $1,480,655) ($1,786,218)
                           ========== ==========  =========== ============
NET LOSS PER COMMON SHARE     ($0.07)    ($0.09)      ($0.15)      ($0.18)
                              =======    =======      =======      =======
WEIGHTED AVERAGE NUMBER OF COMMON SHARES           
   OUTSTANDING             9,933,733  9,933,733    9,933,733    9,933,733
           
<FN>           
 The accompanying notes are an integral part of the financial statements.
                                     3 of 29
</TABLE>

<PAGE>
<TABLE>
                           NEURO NAVIGATIONAL CORPORATION
                       CONSOLIDATED STATEMENTS OF CASH FLOWS
                 FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
                                   (UNAUDITED)

<CAPTION>
                                              1996              1995
                                           ____________     ____________
<S>                                            <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:       
     NET LOSS FOR THE PERIOD               ($1,480,655)      ($1,786,218)
       
ADJUSTMENTS TO RECONCILE NET LOSS TO NET       
    CASH USED BY OPERATING ACTIVITIES:       
       
 DEPRECIATION AND AMORTIZATION                   45,474           47,241
 INCREASE IN ACCOUNTS RECEIVABLE               (120,849)         (35,330)
 INCREASE IN INVENTORY                         (147,680)         (36,050) 
 DECREASE IN PREPAID EXPENSES                    32,292           32,279 
 INCREASE (DECREASE) IN ACCOUNTS       
      PAYABLE AND ACCRUED EXPENSES             (210,847)         346,007
                                             ___________      __________
                                               (401,610)         354,147
                                             ___________      ___________
 NET CASH USED BY  OPERATING ACTIVITIES      (1,882,265)      (1,432,071)
                                             ___________      ___________
CASH USED BY INVESTING ACTIVITIES:       
 INCREASE IN DEPOSITS                            (8,150)   
                                             ___________      ___________
 NET CASH USED BY INVESTING ACTIVITIES           (8,150)               0 
                                             ___________      ___________

CASH PROVIDED BY FINANCING ACTIVITIES:       
 DEFERRED ISSUANCE COSTS                           (748)         (29,607)
 PROCEEDS FROM NOTES PAYABLE                  1,635,000  
 PAYMENTS & CURRENT MATURITIES OF      
     NOTES PAYABLE                                 (844)            (719)
                                              _________          ________
 NET CASH (USED) PROVIDED BY       
     FINANCING ACTIVITIES                     1,633,408          (30,326)
                                              _________          ________

 NET DECREASE IN CASH AND      
  CASH EQUIVALENTS                            (257,007)       (1,462,397)
       
 CASH AND CASH EQUIVALENTS,      
     BEGINNING OF PERIOD                       280,115         1,658,114 
                                              ________         _________
 CASH AND CASH EQUIVALENTS,      
     END OF PERIOD                             $23,108          $195,717 
                                              ========          ========
<FN>
 The accompanying notes are an integral part of the financial statements
</TABLE>
                                      4 of 29 
<PAGE>

                    NEURO NAVIGATIONAL CORPORATION
               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                    For the Period Ending June 30, 1996 
                              (Unaudited)

1. Summary of Significant Accounting Policies:

Basis Of Presentation:

The consolidated financial statements include the accounts of the Company and 
its wholly-owned subsidiary, Endovascular, Inc., a California corporation.  
All intercompany accounts and transactions have been eliminated in 
consolidation.

Although unaudited, the interim consolidated financial statements in this 
report reflect all adjustments, consisting of normal recurring adjustments, 
which are, in the opinion of management, necessary for a fair statement 
of financial position, results of operations and cash flows for the interim 
periods covered and of the financial condition of the Company at the interim 
balance sheet dates.  The results of operations for the interim periods 
presented are not necessarily indicative of the results expected for the 
entire year.

The year-end balance sheet information was derived from audited consolidated  
financial statements, but does not include all disclosures required by 
generally accepted accounting principles.  These consolidated financial 
statements should be read in conjunction with the Company's audited 
consolidated financial statements and notes thereto included in the Company's 
Annual Report on Form 10-KSB for the year ended December 31, 1995.

2. Inventory:

Inventories are stated at the lower of cost (first-in, first-out) or market 
and consists of the following:
                        
                        (Unaudited)  
                         June 30,          December 31,
                           1996               1995
                        __________        ____________

Raw materials            $580,405            $507,045
Work in process            65,601             144,218
Finished goods            771,985             619,048
                        __________        ___________
                        $1,417,991         $1,270,311
                        ==========        ===========

                                      5 of 29
<PAGE>


               NEURO NAVIGATIONAL CORPORATION

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
               For the Period Ending June 30, 1996
                          (Unaudited)

3. Property And Equipment:

Property and equipment consist of the following:

                                   (Unaudited)  
                                     June 30,           December 31,
                                      1996                  1995
                                   _________            ___________

Office furniture                    $216,867              $216,867
Equipment                            243,199               243,199
Leasehold improvements                93,452                93,452
                                   _________              _________
                                     553,518               553,518
                                   _________              _________
  Less, Accumulated depreciation   
          and amortization          (369,853)              (324,379)
                                   __________             _________
                                     $183,665              $229,139
                                   ==========             =========
4. Notes Payable:

 Notes payable consist of the following:
 
                                                  (Unaudited) 
                                                    June 30, 
                                                      1996  
                                                   __________
Notes payable to Ballard Medical   
   Products, collateralized by   
   substantially all assets of the  
   Company, bearing interest at 10%, 
   due January 19, 1997                            $1,635,000 
                                                   ===========

                                      6 of 29
<PAGE>

                      NEURO NAVIGATIONAL CORPORATION

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
                For the Period Ending June 30, 1996
                               (Unaudited)

5. Net Loss Per Share:

Net loss per share is based on the reported net loss divided by the weighted 
average number of outstanding shares.  Outstanding warrants and or options 
have not been included in this calculation as their effect would 
be anti-dilutive.

6. Investment by Ballard Medical Products:

On November 13, 1995, the Company issued and sold to Ballard Medical Products, 
a Utah corporation ("BMP") 200,000 shares of Series A Preferred Stock 
("Preferred Stock") which upon conversion represents 19.5% of the  Company's 
capital stock for US$2 million pursuant to a Stock Purchase and Option 
Agreement dated July 17, 1995 (the "BMP Agreement").  Under the BMP agreement,  
BMP paid to the Company US$500,000 as nonrefundable consideration for an 
option ("BMP Option") to acquire all of the assets of the Company during the 
24 month period following the closing of the sale of the Preferred Stock.  If 
BMP exercises the BMP Option within the first twelve months after such 
closing, the asset purchase price will be US$9,500,000.   If the BMP Option 
is exercised at any time during the remainder of the option term, the asset 
purchase price will be equal to the product of two (2) multiplied by the net 
sales of the Company for the twelve (12) full calendar months immediately 
preceding the date of exercise.  BMP will receive credit for option 
consideration already paid, any liabilities assumed by BMP and loans made to 
the Company by BMP and the balance of any liquid assets retained by the 
Company at closing.  If the BMP Option is exercised and the assets are 
purchased, the Stock issued to BMP will be redeemed in cash by the Company 
at a redemption price equal to 19.5% of the Company's cash and cash 
equivalents on hand after the close of the asset sale less any retained 
liabilities. BMP has also agreed to provide a line of credit up to $500,000 
commencing eight months after the closing of the sale of Preferred Stock to 
finance operating expenses.  

Under the BMP Agreement two nominees of BMP serve on the Company's Board of 
Directors, and the Company's conduct of its business will be subject to 
certain restrictions, during the option term.  The Company will indemnify BMP 
against certain losses in connection with the transaction and 10% of the 
asset purchase price will be escrowed to secure the Company's indemnification 
obligation.

                               7 of 29
<PAGE>


             Item 2. Management's Discussion and Analysis of 
                     Financial Condition and Results of Operations

The Company's quarterly operating results have been and will continue to be 
affected by a wide variety of factors that could materially and adversely 
affect revenues and profitability.  These include factors relating to 
competition, such as competitive pricing pressure and the potential 
introduction of new products by competitors; manufacturing factors, including
constraints in the Company's manufacturing and assembly operations and 
shortages or increases in the prices of raw materials and components; sales 
and distribution factors, such as changes in product mix or distribution 
channels resulting in lower margins, the loss of a significant distributor or 
sales representative, product returns and exchanges; new product development 
and introduction problems, such as increased research, development, marketing 
and clinical trial expenses associated with new product introductions, and 
delays in the introduction of new products and technologies; as well as other 
factors, including levels of expenses relative to revenue levels, personnel 
changes, expenses that may be incurred in litigation, and fluctuations in 
foreign currency exchange rates.  The Company has experienced and expects to 
continue to experience significant fluctuations in operating results, and 
there can be no assurance that the Company will achieve 
profitability in the future.

The following discussion should be read in conjunction with the Financial 
Statements and Notes thereto appearing elsewhere in this Quarterly Report on 
Form 10-QSB.  In addition the Company desires to take advantage of certain 
provisions of the Private Securities Litigation Reform Act of 1995 that 
provide a "safe harbor" for forward looking statements made by or on behalf of 
the Company.  Except for the historical information contained herein, the 
matters discussed herein are forward looking statements, the accuracy of 
which is necessarily subject to risk and uncertainties.  Specifically, the 
Company wishes to alert readers that the aforementioned factors as well as the 
factors set forth under "Risk Factors' contained in the Company's Annual 
Report on Form 10-KSB for the year ended December 31, 1995, in the past have 
affected and in the future could affect the Company's actual results, and 
could cause the Company's results for future periods to differ materially 
from those expressed in any forward looking statements made by or on behalf
of the Company. 
                               8 of 29
<PAGE>

Net Sales

Net Sales increased to $557,613 for the three months ended June 30, 1996 as 
compared to $526,653 for the three months ended June 30, 1995, an increase of 
6%.  Net Sales for the six months ended June 30, 1996 increased to $1,306,924 
as compared to $1,005,267 for the six months ended June 30, 1995, an increase 
of 30%.  For the quarter and year to date, the growth in sales is attributable 
to an increase in sales support staff and increasing market acceptance of the 
Company's products for neuro surgery applications.

Gross Profit

Gross Profit increased to $215,678 for the three months ended June 30, 1996 
as compared to a gross margin of $75,697 for the three months ended June 30, 
1995, an increase of 185%. Gross Profit for the six months ended June 30, 1996 
increased to $416,508 as compared to a gross margin of $174,692 for the six 
months ended June 30, 1995, an increase of 138%.  This increase in both the 
quarter and year gross profit to date was due to increased yields in 
manufacturing and the absorption of manufacturing overhead and fixed costs as 
a result of increased sales volume.

The Company expects that to the extent that sales volume increases and if 
there are no unexpected increases in variable costs, the fixed costs as a 
percentage of cost of goods sold may continue to decrease, which, if achieved, 
would result in further increases in gross margins.

While the Company currently believes it is unlikely that variable costs will
increase unexpectedly in the foreseeable future, there can be no assurance 
that such unexpected increase will not occur, and such an unexpected increase 
could prevent or delay the Company's achievement of further increases in gross 
margins.

Research and Development

Research and Development expenses represent the Company's investment in the 
advancement of less invasive technology in the fields of neuro and vascular 
surgery.  These expenses decreased to $223,451 for the three months ended 
June 30, 1996 from  $363,816 for the three months ended June 30, 1995 or a 
decrease of $140,365.  Research and Development expenses for the six months 
ended June 30, 1996 were $523,374 as compared to $784,369 for the six months 
ended June 30, 1995 or a decrease of $260,995. This decrease was due to a 
reduction in personnel and related benefit costs and decreases in expenses 
related to the Company's vascular products, including clinical and regulatory 
submissions.
                               9 of 29
<PAGE>

Sales and Marketing Expenses

Sales and Marketing expenses were $457,357 for the three months ended 
June 30, 1996 as compared to $351,873 for the three months ended 
June 30, 1995, an increase of $105,484. Sales and Marketing expenses increased 
to $885,090 for the six months ended June 30, 1996 as compared to $685,840 
for the six months ended June 30, 1995, an increase of $199,250. This increase 
was a result of increased selling costs associated with the increase in 
revenues,  increased efforts in the promotion and marketing of its products, 
attendance at and hosting of clinical education seminars, and participation 
in trade shows.

General and Administrative Expenses

General and administrative expenses were $197,023 for the three months ended 
June 30, 1996 as compared to $284,212 for the three months ended 
June 30, 1995 a decrease of $87,189. General and administrative expenses were 
$444,852 for the six months ended June 30, 1996 as compared to $530,122 for 
the six months ended June 30, 1995 a decrease of $85,270. The decrease for the 
six months and quarter was due primarily to lower insurance premiums for 
product liability coverage and Directors and Officers liability insurance.

Net Loss

Net Loss for the three months ended June 30, 1996 was $696,580 as compared to 
$923,491 for the three months ended June 30, 1995 an decrease of $226,911.  
The Net Loss for the six months ended June 30, 1996 was $1,480,655 as compared 
to $1,786,218 for the six months ended June 30, 1995 a decrease of $306,563. 
The decrease for the six months and  quarter is attributable to increased 
sales and gross margins combined with an overall reduction in operating 
expenses.

Liquidity and Capital Resources

The Company has a working capital deficit of ($33,372) at June 30, 1996 as 
compared to working capital of $1,411,697 at December 31, 1995, or a decrease 
of $1,445,069. The Company expects to incur substantial additional operating 
losses as a result of expenditures related to the marketing and sales support 
functions, research and product development activities, completion and 
initiation of clinical trials for current and future products and 
establishment of increased manufacturing capacity.  The timing and amounts of 
these expenditures will depend upon many factors, some of which are beyond the 
Company's control, such as the results of clinical trials, the requirements 
for and time required to obtain approval of 510(k) applications or other 
regulatory approvals, the progress of the Company's research and development 
programs, and market acceptance of the Company's products.
                               
                               10 of 29
<PAGE>

The Company's cash resources are minimal and through the period ending 
July 17, 1996 the Company has borrowed $1,735,000 from BMP to fund operations. 
The BMP Agreement provided for a line of credit up to $500,000 to finance 
operating expenses. The Company began borrowings against this credit facility 
in January 1996 and as of July 17, 1996 the Company has borrowed  $1,235,000 
in addition to the line of credit for a total of $1,735,000.  There is no 
guarantee that BMP will continue funding operations of the Company. 

The Company currently has no commitments for any other credit facilities such 
as revolving loans or lines of credit that could provide additional working 
capital.   Given the current sales volume and applications of cash, the 
Company expects that further capital additions will be necessary to sustain 
growth until the Company becomes cash positive.  In this respect, the 
Company is considering a number of alternatives, including additional equity 
financings, corporate partnerships and a separate financing of its vascular 
subsidiary.  There can be no assurance that any such transactions will be 
available at terms acceptable to the Company or that any financing transaction 
will not be dilutive to current stockholders or that the Company will have
sufficient working capital to fund future operations.

                               11 of 29
<PAGE>

PART II - OTHER INFORMATION
      
Items 1,2,3, and 4 are not applicable and have been omitted.

Item 5. Other Information

As described in Note 6 to the Notes to Consolidated Financial Statements set 
forth above, on November 13, 1995, Ballard Medical Products, a Utah 
corporation ("BMP"), obtained the option to acquire all of the Company's 
assets during the 24-month period commencing November 13, 1995.  The option 
was approved by the Company's stockholders at a special meeting on November 
13, 1995.  BMP has indicated an interest in exercising the option and selling 
the acquired assets (collectively a "Transaction") and with the assistance 
of the Company, retained a financial advisor to assist in arranging a 
Transaction.  In an effort to encourage a group of 27 key employees of the 
Company (including the Company's executive officers) to remain with the 
Company until consummation of a Transaction, and perhaps for a limited time 
thereafter, BMP and the Company entered into an Agreement effective May 7, 
1996 (the "May Agreement") for the benefit of such employees which provides 
for BMP's allocation to such employees of a portion of the excess, if any, of 
BMP's aggregated proceeds from the Transaction over the option exercise
price, certain fees and expenses and certain other adjustments.  The aggregate 
amount paid by BMP to the employees is determined by reference to such net 
proceeds to BMP, and the allocation of such net proceeds among the employees 
is based on percentages specified in the May Agreement, which were determined 
by reference to factors such as options held, seniority and term of employment 
with the Company.

Item 6. Exhibits and Reports on Form 8-K 

 a. Exhibits
  
    10.   Agreement effective May 7, 1996 between the 
          Company and Ballard Medical Products.

    27.   Financial Data Schedule

 b. No reports on Form 8-K were filed by the Company 
    during the period covered by this report.

                               12 of 29
<PAGE>
      
Signatures


Pursuant to the requirements of the Securities Exchange Act 
of 1934, the registrant has duly caused this report to be 
signed on its behalf by the undersigned thereunto duly 
authorized.


      Neuro Navigational Corporation


 Dated: July 26, 1996           By: /s/ WILLIAM J. WORTHEN 
                                   _____________________________
                                   William J. Worthen, President 
                                   and Chief Executive Officer
                                   (Principal Executive Officer)


 Dated: July 26, 1996           By: /s/ BRETT L. SCOTT 
                                   _______________________________
                                   Brett L. Scott, Chief Financial 
                                   Officer and Secretary (Principal
                                   Financial & Accounting Officer)

                               13 of 29
<PAGE>
                           EXHIBIT INDEX

Exhibit                                                    Page
Number                 Exhibit Description                Number               
________               ___________________                ______

10                     Agreement effective May 7, 1996      15
                       between the Company and
                       Ballard Medical Products.                    

27                     Financial Data Schedule.             29

                              14 of 29