U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB


[X]  QUARTERLY  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE ACT
     OF 1934

                  For the quarterly period ended: June 30, 2006

[_]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

                           Commission File No. 0-11808

                             MB SOFTWARE CORPORATION


             Texas                                              59-2220004
(State or other jurisdiction of                              (I.R.S. Employer
 incorporation or organization)                           Identification Number)

                      2225 E. Randol Mill Road - Suite 305
                           Arlington, Texas 76011-6306
                                 (817) 633-9400


Check  whether the Issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or
for 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 June 30, 2006,  16,145,432  of the Issuer's  $0.001 par value common stock
were outstanding.

Transitional Small Business Disclosure Format

                            Yes [_]           No [X]

<PAGE>

                    MB SOFTWARE CORPORATION AND SUBSIDIARIES

                                   Form 10-QSB

                           Quarter Ended June 30, 2006

PART I - FINANCIAL INFORMATION

                         ITEM 1 - FINANCIAL STATEMENTS

Consolidated Balance Sheet as of June 30, 2006 (Unaudited).....................3

Consolidated Statements of Operations for the three and six months ended
        June 30, 2006and 2005 (Unaudited)......................................4

Consolidated Statements of Cash Flows for the six months ended
        June 30, 2006 and 2005 (Unaudited).....................................5


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS.............9

ITEM 3. CONTROLS AND PROCEDURES...............................................14

PART II. OTHER INFORMATION

ITEM 1. Legal Proceedings.....................................................14
ITEM 2. Changes in Securities and Use of Proceeds.............................14
ITEM 3. Defaults Upon Senior Securities.......................................14
ITEM 4. Submission of Matters to a Vote of Security Holders...................14
ITEM 5. Other Information.....................................................14
ITEM 6. Exhibits..............................................................14

SIGNATURE.....................................................................14











                                       2
<PAGE>
<TABLE>
<CAPTION>

PART I - FINANCIAL INFORMATION

                            MB SOFTWARE CORPORATION AND SUBSIDIARIES
                                   CONSOLIDATED BALANCE SHEET
-------------------------------------------------------------------------------------------------
                                                                       June 30,      December 31,
                                                                         2006            2005
                                                                      (unaudited)      (audited)
<S>                                                                   <C>            <C>
ASSETS
------
Current Assets
   Cash                                                              $     17,100    $      2,828

   Accounts receivable                                                     38,538          30,198

   Inventory                                                              101,746          30,644

   Prepayments and other current assets                                    85,567         130,454
                                                                     ------------    ------------
Total current assets                                                      242,951         194,124
Fixed assets, net                                                          60,352          48,771
Security deposits                                                          11,239          14,912
                                                                     ------------    ------------

Total Assets                                                              314,542         257,807
                                                                     ============    ============

LIABILITIES AND STOCKHOLDERS' DEFICIENCY
----------------------------------------
Current liabilities
   Accounts payable and other accruals                                     63,233          18,334
   Payroll tax liabilities                                                221,502         204,383
   Obligation under capital lease - current portion                         3,069           4,092
   Due to related parties                                                 864,557         625,012
   Accrued interest - related parties                                      87,197          50,382
                                                                     ------------    ------------
Total current liabilities                                               1,239,558         902,203

Long-term liabilities
   Obligation under capital lease - noncurrent portion                      2,146           3,069
                                                                     ------------    ------------

Total Liabilities                                                       1,241,704         905,272

Commitments and contingencies

Stockholders' Deficiency
   Preferred stock, $10 par value, 5,000,000 shares authorized;
      issued and outstanding none                                            --              --
   Common stock:  $0.001 par value;  20,000,000 shares authorized;
      issued and outstanding: 16,145,432                                   16,145          16,145
   Stock subscription
   Additional paid-in capital                                          11,181,496      11,181,496
   Accumulated deficit                                                (12,112,764)    (11,833,067)
                                                                     ------------    ------------
                                                                         (915,123)       (635,426)
   Less: treasury stock, at cost;  4,089 shares                           (12,039)        (12,039)
                                                                     ------------    ------------
Total stockholders' deficiency                                           (927,162)       (647,465)
                                                                     ------------    ------------

Total Liabilities and Stockholders' Deficiency                       $    314,542    $    257,807
                                                                     ============    ============
</TABLE>

            See condensed notes to consolidated financial statements.


                                        3
<PAGE>
<TABLE>
<CAPTION>

                                  MB SOFTWARE CORPORATION AND SUBSIDIARIES
                                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                 FOR THE THREE AND SIX MONTHS ENDED JUNE 30
                                                 (UNAUDITED)

-------------------------------------------------------------------------------------------------------------
                                             Three Months     Three Months     Six Months       Six Months
                                             Ended            Ended            Ended            Ended
                                             June 30, 2006    June 30, 2005    June 30, 2006    June 30, 2005
                                             ----------------------------------------------------------------
<S>                                          <C>              <C>              <C>              <C>
Revenues                                            45,782    $      40,919           92,683    $      97,180
Cost of revenues                                    39,967           35,874           78,251           89,237
                                             ----------------------------------------------------------------
Gross margin                                         5,815            5,045           14,432            7,943

Selling, general and administrative                122,906          106,761          246,395          279,258
Royalties expenses and related option fee             --            225,000             --            225,000
                                             ----------------------------------------------------------------

Loss from operations                              (117,091)        (326,716)        (231,963)        (496,315)

Other income (expense), net                        (31,315)         (17,869)         (47,734)         (25,275)
                                             ----------------------------------------------------------------

Loss before provision for income taxes            (148,406)        (344,585)        (279,697)        (521,590)

Provision for income taxes                            --               --               --
                                             ----------------------------------------------------------------

Loss from continuing operations                   (148,406)        (344,585)        (279,697)        (521,590)
                                             ----------------------------------------------------------------

Net loss                                     $    (148,406)   $    (344,585)   $    (279,697)   $    (521,590)
                                             ================================================================


                                             ----------------------------------------------------------------
Basic and diluted loss per share             $       (0.01)   $       (0.02)   $       (0.02)   $       (0.03)
                                             ================================================================

Weighted average common shares outstanding      16,145,432       14,921,432       16,145,432       14,921,432
                                             =================================================================
</TABLE>








            See condensed notes to consolidated financial statements.


                                        4
<PAGE>
<TABLE>
<CAPTION>

                                MB SOFTWARE CORPORATION AND SUBSIDIARIES
                                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                                    FOR THE SIX MONTHS ENDED JUNE 30
                                               (UNAUDITED)

--------------------------------------------------------------------------------------------------------

                                                                                     2006         2005
                                                                                  ---------    ---------
<S>                                                                               <C>          <C>
Cash flows from operating activities
------------------------------------
Net loss                                                                           (279,697)   $(521,590)
Adjustments to reconcile net loss from to net cash used in operating activities
   Depreciation and amortization                                                      4,850        4,004
Changes in assets and liabilities:
   (Increase) decrease in accounts receivable                                        (8,340)       3,318
   (Increase) decrease in inventory                                                 (71,102)       8,508
   (Increase) decrease in prepaid expenses and other assets                          48,560     (135,452)
    Increase (decrease) in accounts payable and accrued liabilities                  98,832      238,522
                                                                                  ---------    ---------
Net cash flows used in operating activities                                        (206,897)    (402,690)

Cash flows from investing activities
------------------------------------
   Purchase of fixed assets                                                         (16,430)     (26,144)
                                                                                  ---------    ---------
Net cash flows used in investing activities                                         (16,430)     (26,144)

Cash flows from financing activities
------------------------------------
   Net advances - related parties                                                   239,545      425,369
   Principal payments under capital lease                                            (1,946)      (2,047)
                                                                                  ---------    ---------
Net cash flows provided by financing activities                                     237,599      423,322
                                                                                  ---------    ---------

Increase (decrease) in cash                                                          14,272       (5,512)

Cash and cash equivalents, beginning of period                                        2,828        7,889
                                                                                  ---------    ---------

Cash and cash equivalents, end of period                                             17,100    $   2,377
                                                                                  =========    =========
</TABLE>








            See condensed notes to consolidated financial statements.


                                        5
<PAGE>

                    MB SOFTWARE CORPORATION AND SUBSIDIARIES
                           QUARTER ENDED JUNE 30, 2006
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

--------------------------------------------------------------------------------

NOTE 1: BASIS OF PRESENTATION

The accompanying  unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles in the United States
of America for interim  financial  information and with the instructions to Form
10-QSB and Rule 10-01 of Regulation S-X. They do not include all information and
notes required by generally accepted accounting  principles in the United States
of America for complete financial statements.

In the  opinion of  management,  all  adjustments  (which  include  only  normal
recurring  adjustments)  necessary  to present  fairly the  financial  position,
results of operations  and cash flows for all periods  presented have been made.
Preparing  financial  statements  requires  management  to  make  estimates  and
assumptions that affect the reported amounts of assets, liabilities, revenue and
expenses.  Actual  results  may differ  from  these  estimates.  The  results of
operations for the period ended June 30, 2006 are not necessarily  indicative of
the operating  results that may be expected for the entire year ending  December
31, 2006.  These  financial  statements  should be read in conjunction  with the
Management's  Discussion  and  Analysis  included  elsewhere  in this  filing in
addition to the Company's financial statements and accompanying notes thereto as
of and for the year ended December 31, 2005, as filed with the Company's  Annual
Report on Form 10-KSB.

Certain  comparative  prior period amounts have been  reclassified to conform to
the current period's presentation.

NOTE 2: GOING CONCERN

The financial  statements  have been prepared on a going  concern  basis,  which
contemplates  realization  of  assets  and  liquidation  of  liabilities  in the
ordinary course of business.  The Company has continuously  incurred losses from
operations and has a significant  accumulated  deficit.  The  appropriateness of
using the going concern basis is dependent upon the Company's  ability to obtain
additional  financing or equity capital and,  ultimately,  to achieve profitable
operations.  These  conditions  raise  substantial  doubt  about its  ability to
continue as a going concern.

It is the  Company's  belief that it will  continue to incur losses for at least
the next twelve months,  and as a result will require additional funds from debt
or equity investments to meet such needs. To meet these objectives, management's
plans are to (i) raise capital by obtaining  financing from debt financing and /
or equity financing through private placement  efforts,  (ii) issue common stock
for  services  rendered in lieu of cash  payments  and (iii)  obtain  loans from
shareholders  as  necessary  (See Note 3).  Without  realization  of  additional
capital or significant  revenues from  operations,  it would be unlikely for the
Company  to  continue  as a going  concern.  The  Company  anticipates  that its
shareholders  will contribute  sufficient funds to satisfy the cash needs of the
Company for the next twelve months.  However, there can be no assurances to that
effect,  as the Company has minimal  revenues and the Company's need for capital
may change dramatically if it is successful in expanding its current business or
acquiring a new business.  If the Company cannot obtain needed funds,  it may be
forced to curtail or cease its activities.

Management  believes  that  actions  presently  taken to  revise  the  Company's
operating and financial  requirements provide the opportunity for the Company to
continue as a going  concern.  The  Company's  future  ability to achieve  these
objectives  cannot  be  determined  at this  time.  The  accompanying  financial
statements do not include any adjustments  that might result from the outcome of
this uncertainty.


                                        6
<PAGE>
<TABLE>
<CAPTION>

NOTE 3: RELATED PARTY TRANSACTIONS

Funds  are  advanced  from  various  related  parties  including  the  Company's
President/CEO/CFO/majority shareholder, including various entities controlled by
him,  and other  shareholders  to fund the company as  necessary to meet working
capital  requirements  and  expenses.  The advances are made  pursuant to a note
agreement  that bears  interest at 10% per annum,  payable  quarterly,  and with
maturity  dates through  December 31, 2006.  All notes are current  liabilities.
Accrued  interest due to related parties  included in accrued  liabilities as of
June 30, 2006 was approximately  $87,000.  The following is a summary of amounts
due to / from related parties as of June 30, 2006:


--------------------- -------------------------- -------------------------------- -----------------
    Related party       Nature of relationship        Terms of the agreement       Amounts due to
                                                                                   related parties
--------------------- -------------------------- -------------------------------- -----------------
<S>                   <C>                        <C>                              <C>
--------------------- -------------------------- -------------------------------- -----------------
Scott Haire, an       Chairman of the Board,     Unsecured note dated July 11,    $          10,000
individual            CEO and CFO of this        2005 for $10,000 at 10% per
                      Company                    annum, due on December 31,
                                                 2006.
--------------------- -------------------------- -------------------------------- -----------------

--------------------- -------------------------- -------------------------------- -----------------
HEB, LLC, a Nevada    Scott Haire, Chairman      Series of funds advanced under             485,147
Limited  Liability    President, CEO and         two separate, unsecured $1
Company               CFO of this company,       million lines of credit dated
                      controls both entities     November 26, 2003 and
                      financing and operating    November 4, 2004, both at 10%
                      decisions                  per annum; no maturity date,
                                                 interest payable quarterly;
                                                 unused lines available at June
                                                 30, 2006 total $1,514,853.
--------------------- -------------------------- -------------------------------- -----------------

--------------------- -------------------------- -------------------------------- -----------------
Araldo Cossutta, an   Director and stockholder   Series of unsecured notes                  367,000
individual            of the Company             bearing interest at 10% per
                                                 annum, maturing through
                                                 December 31, 2006.
--------------------- -------------------------- -------------------------------- -----------------

--------------------- -------------------------- -------------------------------- -----------------
eAppliance Payment    Controlling owners in      Note dated January 1, 2004 for               2,410
Solutions, LLC a      eAppliance Payment         $2,410 at 10% per annum due
Nevada Limited        Solutions, LLC are         on December 31, 2006.
Liability Company     Cossutta and Haire
--------------------- -------------------------- -------------------------------- -----------------
                                                                                  $         864,557
--------------------- -------------------------- -------------------------------- -----------------
</TABLE>


NOTE 4 - COMMITMENTS AND CONTINGENCIES

Consulting Agreement

The Company's  subsidiary entered into a Consulting  Agreement dated November 7,
2005,  for  consulting  and  advisory  services to the Company for a period of 6
months at the rate of $12,500 per month. For the six months ended June 30, 2006,
consulting expenses totaled $37,500. The consulting agreement was not renewed.

Operating leases

The Company  leases office space and office  equipment  under  operating  leases
expiring in various years through 2009. Rental expense charged to operations for
the three and six  months  ended June 30,  2006 was  approximately  $25,000  and
$52,000,  respectively.  Minimum  future rental  payments  under  non-cancelable


                                        7
<PAGE>

operating leases having remaining terms in excess of 1 year as of June 30, 2006,
for  each  of  the  next  five  years  and  in  the  aggregate  are  as  follows
(approximately):

2007                                   $ 100,000
2008                                      70,000
2009                                      48,000
2010                                      12,000
2011                                        --
                                       ---------
                                       $ 230,000
                                       =========


Capital leases

The  Company  leases a phone  system  under a  capital  lease  for a  period  of
thirty-six  months through  September 2007.  Minimum future lease payments under
capital lease in the aggregate are: 2006: $3,069 and 2007: $2,146.

Federal Payroll Taxes

The Company is delinquent in the payment of its payroll tax liabilities with the
Internal  Revenue  Service.  As of June, 30, 2006,  unpaid payroll taxes totaled
approximately  $172,000  and related  penalties  and  interest of  approximately
$49,000 computed through June 30, 2006, and are included in accrued  liabilities
at June 30,  2006.  The  Company  expects to pay these  delinquent  payroll  tax
liabilities  as soon as  possible.  The final  amount due will be subject to the
statutes of limitations related to such liabilities and to negotiations with the
Internal Revenue Service.


NOTE 5 - RECENT ACCOUNTING PRONOUNCEMENTS

In March  2006,  the FASB  issued SFAS No. 156,  "Accounting  for  Servicing  of
Financial  Assets--an  amendment  of FASB  Statement  No.  140."  SFAS  No.  156
addresses  the  accounting  for  separately   recognized  servicing  assets  and
servicing liabilities.  SFAS 156 is effective as of the beginning of an entity's
first fiscal year that begins after September 15, 2006. The adoption of SFAS No.
156 does not have any impact on the Company's financial statements.

In June 2006, the FASB issued Interpretation No. 48, "Accounting for Uncertainty
in Income Taxes - an interpretation of FASB Statement No. 109," (FIN 48). FIN 48
clarifies the  accounting  for  uncertainty in tax positions and requires that a
Company recognize in its financial  statements the impact of a tax position,  if
that position is more likely than not of being sustained on audit,  based on the
technical  merits of the  position.  The  provisions of FIN 48 are effective for
fiscal years  beginning  after  December 15, 2006. The adoption of FIN 48 is not
expected to have any impact on the Company's financial statements.

Other  recent  accounting  pronouncements  issued  by the  FASB  (including  its
Emerging Issues Task Force ("EITF")), the American Institute of Certified Public
Accountants ("AICPA"),  and the SEC did not or are not believed by management to
have a material impact on the Company's present or future financial statements.


                                       8
<PAGE>

ITEM 2:   MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS/RISK FACTORS

Introduction

Management's  discussion  and analysis of results of  operations  and  financial
condition ("MD&A") is provided as a supplement to the accompanying  consolidated
financial  statements  and  footnotes  to help provide an  understanding  of our
financial condition, changes in financial condition and results of operations.

Caution Concerning Forward-Looking Statements/Risk Factors

The  following  discussion  should  be read in  conjunction  with the  financial
statements and the notes thereto and the other financial  information  appearing
elsewhere in this document. In addition to historical information, the following
discussion  and other parts of this  document  contain  certain  forward-looking
information.  When used in this discussion, the words "believes," "anticipates,"
"expects,"  and similar  expressions  are  intended to identify  forward-looking
statements.  Such  statements  are subject to certain  risks and  uncertainties,
which could cause actual results to differ  materially  from those projected due
to a number of factors  beyond our  control.  We do not  undertake  to  publicly
update or revise any of our  forward-looking  statements  even if  experience or
future  changes show that the indicated  results or events will not be realized.
You  are  cautioned  not  to  place  undue  reliance  on  these  forward-looking
statements,  which  speak  only as of the date  hereof.  You are  also  urged to
carefully review and consider our discussions regarding the various factors that
affect our business, included in this section and elsewhere in this report.

Factors That Could Affect Future Results

We face an inherent  risk of exposure to product  liability  claims in the event
that the use of our products results in injury.  Such claims may include,  among
others,   that  our  products   contain   contaminants  or  include   inadequate
instructions  as to use or  inadequate  warnings  concerning  side  effects  and
interactions with other substances.  We do not anticipate obtaining  contractual
indemnification  from parties supplying raw materials or marketing our products.
In any event, any such indemnification if obtained would be limited by our terms
and, as a practical matter, to the  creditworthiness  of the indemnifying party.
In  the  event  that  we  do  not  have   adequate   insurance  or   contractual
indemnification, product liabilities relating to defective products could have a
material adverse effect on our operations and financial conditions.

Because  of  our  dependence  upon  consumer   perceptions,   adverse  publicity
associated with illness or other adverse  effects  resulting from the use of our
products or any similar  products  distributed by other  companies  could have a
material  adverse effect on our operations.  Such adverse  publicity could arise
even  if the  adverse  effects  associated  with  such  products  resulted  from
consumers' failure to consume such products as directed. In addition, we may not
be able to counter the effects of negative publicity  concerning the efficacy of
our  products.  Any  such  occurrence  could  have  a  negative  effect  on  our
operations.

Other key factors that affect our operating results are as follows:

     o    Overall customer demand and acceptance for our various products.
     o    Volume  of  products  ordered  and the  prices  at  which  we sell our
          products.
     o    Our ability to manage our cost structure for capital  expenditures and
          operating  expenses  such  as  salaries  and  benefits,   freight  and
          royalties.
     o    Our ability to match operating costs to shifting volume levels.
     o    Increases in the cost of raw materials and other supplies.
     o    The impact of competitive products.
     o    Limitations on future financing.
     o    Increases  in the cost of  borrowings  and  unavailability  of debt or
          equity capital.
     o    Our inability to gain and/or hold market share.


                                        9
<PAGE>

     o    Exposure to and expense of resolving and defending  product  liability
          claims and other litigation.
     o    Managing and maintaining growth.
     o    The success of product development and new product  introductions into
          the marketplace.
     o    The departure of key members of management.
     o    Our ability to efficiently manufacture our products.
     o    Unexpected customer bankruptcy.

Overview and Plan of Operation

The  Company  currently  has limited  business  operations,  maintaining  leased
offices in Arlington, TX, and Fort Lauderdale,  FL. All major business functions
are performed by our subsidiary, Wound Care Innovations.  Although Wound Care is
a distributor  of our products,  it is also  responsible  for product  packaging
development,  packaging materials,  and coordination of all processes except the
actual  manufacturing of the product.  Wound Care also conducts other activities
that are typical of a product distributor and include sales, marketing, customer
service,  and customer support.  All of these activities are run and managed out
of Wound Care's Fort Lauderdale offices.

Manufacturing of our products is conducted by Applied Nutritionals, an unrelated
party. Warehousing, shipping, and physical inventory management is outsourced to
Diamond Contract Manufacturing of Rochester, NY.

Our sales and  marketing  activities to date have been limited and have resulted
in a nominal revenue stream. Through these activities, we have, however, secured
product  evaluations with a number of key accounts.  These accounts are regional
and national healthcare  provider  organizations that represent strong recurring
revenue opportunities for the Company.

We  currently  intend  to  secure  capital  resources  for  expansion  of staff,
inventories,  marketing efforts, and research and development; however we may be
unsuccessful  in our efforts to secure such  capital.  If we are  successful  in
raising capital,  we anticipate  hiring a number of management,  marketing,  and
clinical  staff to secure  additional  accounts,  market to the broader US wound
care   market,   support   customers  in  specific   geographies,   broaden  our
clinical/educational  programs,  and evaluate  retail and  international  market
opportunities.

Results of Operations

Three months ended June 30, 2006 and June 30, 2005

Revenues.  The Company  generated  revenues  for the three months ended June 30,
2006 of $45,782 (2005: $40,919),  through its wholly-owned subsidiary Wound Care
Innovations,  LLC,  ("WCI").  The slight increase is a result of increased sales
volumes to our current customers.

Cost of  revenues  and gross  margin.  Costs of revenues  for 2006 were  $39,967
(2005:  $35,874) resulting in a gross margin of $5,815 (2005: $5,045). Our gross
margins approximated 12% for both periods presented. We don't expect realization
of gross  margins to increase  much higher as we bear the costs and  continue to
try to compete with other larger,  better capitalized companies that can offer a
similar product at a reduced cost.

Selling, general and administrative expenses ("SGA"). SGA for 2006 were $122,906
(2005:  $106,761) and consisted  primarily of wages,  facility-related  expenses
such as rent and utilities,  and outside professional services such as legal and
professional fees incurred in connection with our SEC reporting requirements. We
expect selling,  general and administrative  expenses to increase as we continue
to expand our  marketing  efforts and the number of products we offer and as our
business  continues to grow and the costs associated with being a public company
continue to increase as a result of increased reporting requirements,  including
but not limited to the Sarbanes-Oxley Act of 2002.


                                       10
<PAGE>

Six months ended June 30, 2006 and June 30, 2005

Revenues.  The Company generated revenues for the six months ended June 30, 2006
of $92,683  (2005:  $97,180),  through its  wholly-owned  subsidiary  Wound Care
Innovations,  LLC,  ("WCI").  Revenues  decreased  slightly,  but  still  remain
relatively  consistent for the period to date as we continue to provide  product
to our current customer base.

Cost of  revenues  and gross  margin.  Costs of revenues  for 2006 were  $78,251
(2005: $89,237) resulting in a gross margin of $14,432 (2005: $7,943). Our gross
margins  increased to approximately  16% from 8% in 2005. The increase  resulted
from a 2005 additional  inventory  adjustment that lowered our gross margins. We
expect our current margins to approximate  between 10 - 12 % and we don't expect
realization  of gross  margins to increase  much higher as we bear the costs and
continue to try to compete with other larger,  better capitalized companies that
can offer a similar product at a reduced cost.

Selling, general and administrative expenses ("SGA"). SGA for 2006 were $246,395
(2005:  $279,258) and consisted  primarily of wages,  facility-related  expenses
such as rent and utilities,  and outside professional services such as legal and
professional fees incurred in connection with our SEC reporting requirements. We
expect selling,  general and administrative  expenses to increase as we continue
to expand our  marketing  efforts and the number of products we offer and as our
business  continues to grow and the costs associated with being a public company
continue to increase as a result of increased reporting requirements,  including
but not limited to the Sarbanes-Oxley Act of 2002.

Royalties expense and related option fee. These prior year amounts were incurred
in connection  with a prior year option  agreement to distribute  the wound care
product through the Company's wholly-owned subsidiary, which option agreement is
no longer in effect. The total amount of $225,000 represented $150,000 due under
the option agreement and $75,000 paid as an option fee to maintain the exclusive
right to distribute the product.


Liquidity and Capital Resources

The Company currently has limited resources to maintain its current  operations,
secure more inventory, and meet its contractual obligations.  Additional capital
must be raised immediately through equity or debt offerings. If we are unable to
obtain additional  capital,  we will be unable to operate our business.  We have
historically relied on advances from related parties to fund our working capital
expenses.  We generated a loss from  operations of $148,406 and $279,697 for the
three and six  months  ended  June 30,  2006,  respectively,  and had a negative
working capital of approximately $997,000 at June 30, 2006.

We rely on the funds advanced from our  President/CEO/CFO/majority  shareholder,
including various  controlled by him, and other shareholders to fund the company
as necessary to meet working capital requirements and expenses. The advances are
made pursuant to a note agreement that bears interest at 10% per annum,  payable
quarterly,  and with  maturity  dates through  December 31, 2006.  All notes are
current liabilities. Accrued interest due to related parties included in accrued
liabilities as of June 30, 2006 was  approximately  $87,000.  The following is a
summary of amounts due to / from related parties as of June 30, 2006:

<TABLE>
<CAPTION>
--------------------- -------------------------- -------------------------------- -----------------
    Related party       Nature of relationship        Terms of the agreement       Amounts due to
                                                                                   related parties
--------------------- -------------------------- -------------------------------- -----------------
<S>                   <C>                        <C>                              <C>
--------------------- -------------------------- -------------------------------- -----------------
Scott Haire, an       Chairman of the Board,     Unsecured note dated July 11,    $          10,000
individual            CEO and CFO of this        2005 for $10,000 at 10% per
                      Company                    annum, due on December 31,
                                                 2006.
--------------------- -------------------------- -------------------------------- -----------------


                                       11
<PAGE>

--------------------- -------------------------- -------------------------------- -----------------
HEB, LLC, a Nevada    Scott Haire, Chairman      Series of funds advanced under             485,147
Limited  Liability    President, CEO and         two separate, unsecured $1
Company               CFO of this company,       million lines of credit dated
                      controls both entities     November 26, 2003 and
                      financing and operating    November 4, 2004, both at 10%
                      decisions                  per annum; no maturity date,
                                                 interest payable quarterly;
                                                 unused lines available at June
                                                 30, 2006 total $1,514,853.
--------------------- -------------------------- -------------------------------- -----------------

--------------------- -------------------------- -------------------------------- -----------------
Araldo Cossutta, an   Director and stockholder   Series of unsecured notes                  367,000
individual            of the Company             bearing interest at 10% per
                                                 annum, maturing through
                                                 December 31, 2006.
--------------------- -------------------------- -------------------------------- -----------------

--------------------- -------------------------- -------------------------------- -----------------
eAppliance Payment    Controlling owners in      Note dated January 1, 2004 for               2,410
Solutions, LLC a      eAppliance Payment         $2,410 at 10% per annum due
Nevada Limited        Solutions, LLC are         on December 31, 2006.
Liability Company     Cossutta and Haire
--------------------- -------------------------- -------------------------------- -----------------
                                                                                  $         864,557
--------------------- -------------------------- -------------------------------- -----------------
</TABLE>

Without   realization  of  additional  capital  or  significant   revenues  from
operations, it would be unlikely for the Company to continue as a going concern.
The  consolidated  financial  statements  have been  prepared on a going concern
basis, which  contemplates  realization of assets and liquidation of liabilities
in the ordinary course of business. The Company has continuously incurred losses
from operations and has a significant  accumulated  deficit. The appropriateness
of using the going  concern  basis is dependent  upon the  Company's  ability to
obtain  additional  financing  or equity  capital  and,  ultimately,  to achieve
profitable  operations.  These  conditions  raise  substantial  doubt  about its
ability to continue as a going concern.  The financial statements do not include
any  adjustments  that might  result  from the outcome of this  uncertainty  and
should not be regarded as typical for normal operating periods.

It is the Company's  belief that it will continue to incur nominal losses for at
least the next twelve months, and as a result will require additional funds from
debt or equity investments to meet such needs. The Company  anticipates that its
officers and shareholders  will contribute  sufficient funds to satisfy the cash
needs of the  Company  for the next  twelve  months.  However,  there  can be no
assurances  to that effect,  as the Company has  insignificant  revenues and the
Company's  need for  capital  may change  dramatically  if it is  successful  in
acquiring a new business.  If the Company cannot obtain needed funds,  it may be
forced to curtail or cease its activities.  Our future funding requirements will
depend on  numerous  factors,  some of which are beyond the  Company's  control.
These  factors  include  our  ability to operate  profitably,  recruit and train
management and personnel, and to compete with other, better-capitalized and more
established competitors. To meet these objectives, management's plans are to (i)
raise capital by obtaining  financing  through private placement  efforts,  (ii)
issue  common  stock for  services  rendered in lieu of cash  payments and (iii)
obtain loans from officers and shareholders as necessary.


                                       12
<PAGE>

Contractual Obligations (Commitments and Contingencies)

Consulting Agreement

The Company's  subsdiary  entered into a Consulting  Agreement dated November 7,
2005,  for  consulting  and  advisory  services to the Company for a period of 6
months at the rate of $12,500 per month. For the six months ended June 30, 2006,
consulting expenses totaled $37,500. The consulting agreement was not renewed.

Operating leases

The Company  leases office space and office  equipment  under  operating  leases
expiring in various years through 2009. Rental expense charged to operations for
the three and six  months  ended June 30,  2006 was  approximately  $25,000  and
$52,000,  respectively.  Minimum  future rental  payments  under  non-cancelable
operating leases having remaining terms in excess of 1 year as of June 30, 2006,
for  each  of  the  next  five  years  and  in  the  aggregate  are  as  follows
(approximately):

2007                                   $ 100,000
2008                                      70,000
2009                                      48,000
2010                                      12,000
2011                                        --
                                       ---------
                                       $ 230,000
                                       =========


Capital leases

The  Company  leases a phone  system  under a  capital  lease  for a  period  of
thirty-six  months through  September 2007.  Minimum future lease payments under
capital lease are: 2006: $3,069 and 2007: $2,146.

Federal Payroll Taxes

The Company is delinquent in the payment of its payroll tax liabilities with the
Internal  Revenue  Service.  As of June, 30, 2006,  unpaid payroll taxes totaled
approximately  $172,000  and related  penalties  and  interest of  approximately
$49,000 computed through June 30, 2006, and are included in accrued  liabilities
at June 30,  2006.  The  Company  expects to pay these  delinquent  payroll  tax
liabilities  as soon as  possible.  The final  amount due will be subject to the
statutes of limitations related to such liabilities and to negotiations with the
Internal Revenue Service.












                                       13
<PAGE>

ITEM 3.   CONTROLS AND PROCEDURES


As of the end of the period  covered by this  report,  the Company  conducted an
evaluation,  under the supervision and with the  participation  of the principal
executive officer, who is also the principal financial officer, of the Company's
disclosure  controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)
under the Securities  Exchange Act of 1934 (the "Exchange Act")).  Based on this
evaluation,   the  principal  executive   officer/principal   financial  officer
concluded that the Company's disclosure controls and procedures are effective to
ensure that information  required to be disclosed by the Company in reports that
it files or submits  under the Exchange Act is recorded,  processed,  summarized
and  reported  within the time  periods  specified  in  Securities  and Exchange
Commission  rules and  forms.  There was no  change  in the  Company's  internal
control over financial  reporting  during the Company's most recently  completed
fiscal  quarter  that  has  materially  affected,  or is  reasonably  likely  to
materially affect, the Company's internal control over financial reporting.

There were no changes in the  Company's  internal  controls or in other  factors
that could  significantly  affect these controls  subsequent to the date of such
evaluation.

PART II  - OTHER INFORMATION

ITEM 1.   Legal Proceedings - None

ITEM 2.   Changes in Securities and Use of Proceeds - None

ITEM 3.   Defaults Upon Senior Securities - None

ITEM 4.   Submission of Matters to a Vote of Security Holders - None

ITEM 5.   Other Information - None

ITEM 6.   Exhibits

(a)  Exhibits

31        Certification pursuant to Rule 13a-14(a)/15d-14(a)

32        Certification of Principal  Executive Officer and Principal  Financial
          Officer  in  accordance  with 18 U.S.C.  Section  1350,  as adopted by
          Section 906 of the Sarbanes-Oxley Act of 2002


                                   SIGNATURES

In accordance  with the  requirements  of the Exchange Act, the  registrant  has
caused this report to be signed on its behalf by the undersigned  thereunto duly
authorized.

                                         MB SOFTWARE CORPORATION



Date: Aug. 11, 2006                       /s/ Scott A. Haire
                                         ---------------------------------------
                                         Scott A.  Haire, Chairman of the Board,
                                         Chief Executive Officer and President
                                         (Principal Financial Officer)


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