EXHIBIT 10.12


                            DEMAND PROMISSORY NOTE

   FOR VALUE RECEIVED, CompuTrac, Inc., a Texas Corporation, hereby  promises
 and agrees to pay to the order of  Harry W. Margolis, his heirs or  assigns,
 the sum of Eight Hundred Seventeen  Thousand Six Hundred and Fifty Nine  and
 no/100 Dollars ($817,659.00), together with interest thereon at the rate  of
 six percent (6%)   per  annum on the  unpaid balance  beginning February  1,
 2001.  Said sum shall be paid in the manner following:

   1) all accrued interest shall be paid monthly commencing March 1, 2001,
      and continuing on the first day of each calendar month thereafter;

   2) the principal shall be payable on demand, which may be made in whole
      or in part, or if no demand is made, then on January 1, 2003.

   All  payments shall  be  first applied  to  interest and  the  balance  to
 principal.  This  Note may  be prepaid at  any time,  in whole  or in  part,
 without penalty.

   Further, this Note shall, at the option of the holder, be immediately  due
 and payable upon  failure to  make any payment  due hereunder,  or upon  the
 occurrence of any one or more of the following events:

 1.) breach of any condition in any security interest, mortgage, pledge
     agreement or guaranty granted now or in the future as collateral
     security for this Note; or,

 2.) breach of any existing or future condition in any security agreement or
     mortgage, if any, having a priority over any security agreement or
     mortgage on collateral granted, in whole or in part, as collateral
     security for this Note; or,

 3.) upon the filing by the undersigned, or any future obligor hereof,  an
     assignment for the benefit of creditors, bankruptcy or for relief under
     any provisions of the Bankruptcy Code; or by suffering an involuntary
     petition in bankruptcy or receivership not vacated within thirty (30)
     days.

   The  failure of the holder to accelerate or  demand payment shall not  act
 as  a waiver as to  any subsequent or other  event which would authorize the
 acceleration or demand  for payment,  nor shall any  such failure  act as  a
 waiver to  accelerate  or demand  payment  due  to the  continuance  of  the
 condition or ongoing status initially brought about by the occurrence of any
 such event.

   In the  event this Note shall  be in default and  placed with an  attorney
 for collection, then  the undersigned agrees  to pay all  attorney fees  and
 costs of collection incurred by the holder.  All payments hereunder shall be
 made in Dallas County, Texas or to such address as may from time-to-time  be
 designated in writing by any holder hereof.

   The undersigned and all other parties to this Note, whether as  endorsers,
 guarantors or sureties, waive demand, presentment and protest of all notices
 thereto and further  agree to remain  bound, notwithstanding any  extension,
 modification, waiver,  or  other  indulgence  by  any  holder  or  upon  the
 discharge or release of any obligor hereunder  or to this Note, or upon  the
 exchange, substitution or release of any collateral granted as security  for
 this Note.

   Signed and dated this 31st day of January, 2001.


                               CompuTrac, Inc.

                               By:_______________________________
                                    George P. Pardue
                               Its: Chief Financial Officer