EXHIBIT 99.1


Summarized below is the unaudited condensed and proforma consolidated 
statements of operations for the six-month periods ended December 31, 1998
and December 31, 1997 as if the acquisition of Paul Harrison Enterprises, 
Inc. had taken place at June 30, 1997.


<TABLE>
<CAPTION>
                                                  Proforma Condensed Consolidated Statement of Operations
                                                for the Six-Month Period Ended December 31, 1998 (Unaudited)
                             ---------------------------------------------------------------------------------------------------

                                                    Paul Harrison        Proforma          Proforma
                              HealthWatch, Inc.   Enterprises, Inc.     Acquisition      Consolidating        HealthWatch, Inc.
                                Consolidated        Consolidated        Adjustment         Entries              Consolidated
                              -----------------  -----------------     -------------    -------------        ------------------
<S>                             <C>                <C>                 <C>               <C>                   <C>
Sales                           $   621,912         $     15,000       $       --        $        --           $    636,912
Cost of sales                       451,999                 --                 --                 --                451,999
                                 ----------           ----------         ----------        -----------           ----------
   Gross profit                     169,913               15,000               --                 --                184,913
Operating expenses                  747,137               70,056               --               52,434<F1>          869,627
                                 ----------           ----------         ----------        -----------           ----------

Loss from operations               (577,224)             (55,056)              --              (52,434)            (684,714)
Other income (expense)             (342,825)             503,578               --                 --                160,753
                                 ----------           ----------         ----------        -----------           ----------

  Net Income (loss)             $  (920,049)        $    448,522       $       --        $     (52,434)        $   (523,961)
                                 ==========           ==========         ==========        ===========           ==========

Net loss per share              $      (.36)                                                                           (.21)
                                 ==========                                                                      ==========

Weighted average
    number of shares
    outstanding                   2,550,005                                                                       2,550,005
                                 ==========                                                                      ==========

</TABLE>
[FN]
<F1> To record amortization of technology and other intangible assets.
</FN>


                                                            -1-

<PAGE>
<TABLE>
<CAPTION>
                                                  Proforma Condensed Consolidated Statement of Operations
                                                for the Six-Month Period Ended December 31, 1997 (Unaudited)
                             ---------------------------------------------------------------------------------------------------

                                                    Paul Harrison        Proforma          Proforma
                              HealthWatch, Inc.   Enterprises, Inc.     Acquisition      Consolidating        HealthWatch, Inc.
                                Consolidated        Consolidated        Adjustment         Entries              Consolidated
                              -----------------  -----------------     -------------    -------------        ------------------
<S>                             <C>                <C>                  <C>              <C>                   <C>
Sales                           $   664,639        $      --            $      --        $        --           $    664,639
Cost of sales                       619,558               --                   --                 --                619,558
                                 ----------         ----------           ----------        -----------          -----------
   Gross profit                      45,081               --                   --                 --                 45,081

Operating expenses                1,033,808            208,043                 --               52,434<F1>        1,294,285
                                 ----------         ----------           ----------        -----------          -----------

Loss from operations               (988,727)          (208,043)                --              (52,434)          (1,249,204)
Other income (expense)              (29,098)           433,299                 --                 --                404,201
                                 ----------         ----------           ----------        -----------          -----------

  Net Income (loss)             $(1,017,825)       $   225,256          $      --        $     (52,434)        $   (845,003)
                                 ==========         ==========           ==========        ===========          ===========

Net loss per share              $     (.83)                                                                            (.69)
                                 ==========                                                                     ===========

Weighted average
    number of shares
    outstanding                   1,222,644                                                                       1,222,644
                                 ==========                                                                     ===========

<FN>
<F1> To record amortization of technology and other intangible assets.
</FN>
</TABLE>
                                                                 -2-