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: March 31, 2002


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


                           Commission File No. 0-11808

                             MB SOFTWARE CORPORATION


            Colorado                                            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
         (Address of principal executive offices)               (Zip Code)

       Registrant's telephone number, including area code: (817) 633-9400

           Securities registered pursuant to Section 12(b) of the Act:

                                                          Name of each Exchange
Title of Each Class                                        on Which Registered
-------------------                                         ------------------
       Common                                               OTC BULLETIN BOARD

          Securities registered pursuant to Section 12 (g) of the Act:
                          Common Stock $.001 par value
                          ----------------------------
                                (Title of Class)

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 May 20,  2002,  1,784,833  shares of the  Issuer's  $.001 par value common
stock were outstanding.

Transitional Small Business Disclosure Format
                                     Yes  [ ]                 No   [X]

<PAGE>

                             MB SOFTWARE CORPORATION

                                   Form 10-QSB

                          Quarter Ended March 31, 2002


                                      INDEX

PART I  -  FINANCIAL INFORMATION                                     PAGE NUMBER

         Item 1  -  Financial Statements

            Consolidated Balance Sheets
            March 31, 2002(Unaudited) and December 31, 2001 (Audited)  F-1 - F-2

            Consolidated Statements of Operations  -
            for the Three Months ended March 31, 2002(Unaudited) and
            March 31, 2001 (Unaudited)                                       F-3

            Consolidated Statements of Cash Flows
            for the Three Months ended March 31, 2002(Unaudited)
            and March 31, 2001 (Unaudited)                                   F-4


         Item 2  -  Management's Discussion
         and Analysis of Financial Condition and
         Results of Operations                                                3

PART II - OTHER  INFORMATION

            Submission of Matters to Vote of Security Holders                 5


         Item 6  -  Exhibits
         and Reports on Form 8-K                                              6

SIGNATURES                                                                    6



                                       2
<PAGE>

                    MB SOFTWARE CORPORATION AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEET



                                     ASSETS
                                     ------


                                                       March 31,    December 31,
                                                         2002           2001
                                                     ------------   ------------
                                                     (Unaudited)     (Audited)
CURRENT ASSETS
   Cash                                              $       --     $       --

   Accounts receivables, net of allowance
         for doubtful accounts of $0 for both years         7,250          7,250
   Inventory                                              131,740        131,740
   Notes receivable                                         8,439          2,000
   Prepaid expenses                                        41,388         33,941
                                                     ------------   ------------

                 Total Current Assets                     188,817        174,931
                                                     ------------   ------------


PROPERTY AND EQUIPMENT, NET                                78,646         83,654
                                                     ------------   ------------

OTHER ASSETS
   Software license, net                                  338,048        368,780
   Notes receivable - related parties                     350,000        361,789
                                                     ------------   ------------
                                                          688,048        730,569
ASSETS OF DISCONTINUED
    OPERATIONS                                            541,229        474,574
                                                     ------------   ------------

TOTAL ASSETS                                         $  1,496,740   $  1,463,728
                                                     ============   ============

                                       F1


<PAGE>
<TABLE>
<CAPTION>

                    MB SOFTWARE CORPORATION AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEET


                      LIABILITIES AND SHAREHOLDERS' DEFICIT
                      -------------------------------------


                                                           March 31,     December 31,
                                                             2002            2001
                                                         ------------    ------------
<S>                                                      <C>             <C>
CURRENT LIABILITIES
       Notes payable                                     $  2,562,282    $  2,099,035
        Checks in excess of bank balance                        6,741          23,572
       Accounts payable                                       344,219         326,112
       Accrued liabilities                                    735,866
                                                         ------------    ------------

                    Total current liabilities               3,649,108       3,174,537

LIABILITIES OF DISCONTINUED OPERATIONS                        378,948         385,472
                                                         ------------    ------------

                   Total liabilities                        4,028,056       3,560,009

SHAREHOLDERS' DEFICIT
   Series A sesnior cumulative convertible
       participating preferred stock; $10 par value
        340,000 shares issued and outstanding in
        2002 and 2001; dividends in arrears
       2002$1,150,644, 2001 $1,065,644                      3,400,000       3,400,000
   Undesignated preferred stock; $10 par value
        660,000 shares authorized; none issued                   --              --
       Common stock .001 par value;150,000,000 shares
          authorized; 73,500,000 and 73,400,000 shares         73,500          73,400
         issued in 2002 and 2001, respectively
       Additional paid-in capital                           2,012,291       2,011,391
       Accumulated deficit                                 (8,005,068)     (7,569,033)
                                                         ------------    ------------

                                                           (2,519,277)     (2,084,242)
     Treasury stock, at cost; 407,446 shares                  (12,039)        (12,039)
                                                         ------------    ------------

                Total shareholders' deficit                (2,531,316)     (2,096,281)
                                                         ------------    ------------

TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT              $  1,496,740    $  1,463,728
                                                         ============    ============
</TABLE>

                                       F2
<PAGE>
<TABLE>
<CAPTION>

                    MB SOFTWARE CORPORATION AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

                                                                  Three Months Ended
                                                             March 31, 2002    March 31, 2001
                                                             --------------    --------------
<S>                                                          <C>               <C>
REVENUES                                                     $         --      $         --

COST OF REVENUES                                                       --                --
                                                             --------------    --------------

GROSS PROFIT                                                           --                --

OPERATING EXPENSES
       Selling, general & administrative                            267,745           248,615
       Depreciation and amortization                                 35,740             6,559
                                                             --------------    --------------

               Total operating expenses                             303,485           255,174

               Loss from operations                                (303,485)         (255,174)

OTHER INCOME (EXPENSE)                                                 --
       Interest expense                                            (164,140)          (35,237)
       Interest  income                                               7,911             7,011
                                                             --------------    --------------

               Total other income (expense)                        (156,229)          (28,226)
                                                             --------------    --------------

               Loss before benefit for income taxes                (459,714)         (283,400)
                                                             ==============    ==============

              BENEFIT FOR INCOME TAXES                                8,051              --
                                                             --------------    --------------

             Loss from continuing operations                       (451,663)         (283,400)

DISCONTINUED OPERATIONS
            Income (loss) from operations, net of tax
            effect in 2002 of $8,051 and in 2000 of $0               15,628           254,157
                                                             --------------    --------------

            Net loss                                         $     (436,035)   $      (29,243)
                                                             ==============    ==============

Loss from continuing operations                              $     (451,663)   $     (283,400)

Plus: Cumulative preferred stock dividends                          (85,000)          (85,000)
                                                             --------------    --------------

            Income (loss) available to common shareholders   $     (536,663)   $     (368,400)
                                                             ==============    ==============

BASIC AND DILUTED L0SS PER SHARE
           Continuing operataions                            $        (0.01)   $        (0.01)
            Discontinuing operations                         $         --      $         --
                                                             --------------    --------------

                                                             $        (0.01)   $        (0.01)
                                                             ==============    ==============

WEIGHTED AVERAGE COMMON SHARES
       OUTSTANDING                                               73,427,778        70,400,000
                                                             ==============    ==============
</TABLE>

                                       F3
<PAGE>
<TABLE>
<CAPTION>

                    MB SOFTWARE CORPORATION AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                                     THREE MONTHS      THREE MONTHS
                                                                    ENDED 03/31/02    ENDED 03/31/01
                                                                         2002              2001
                                                                    --------------    --------------
<S>                                                                 <C>               <C>

CASH FLOWS FROM OPERATING ACTIVITIES
   Loss from continuing operations                                  $     (451,663)   $     (283,400)

   Adjustments to reconcile loss from continuing
    operations to net cash used in operating activities:

        Accretion of debt                                                   68,747              --
        Depreciation and amortization                                       35,740             6,559
        Deferred license and consulting cost recognized                       --              24,610
        Changes in assets and liabilities:
           Accounts receivable                                                --              (1,088)
           Prepaid expenses and other                                       (7,447)          (20,917)
           Checks in excess of bank balance                                (16,831)           (1,648)
           Accounts payable and accrued liabilities                         28,155           315,537
                                                                    --------------    --------------

              Net cash provided by (used in) continuing operation         (343,299)           39,653

              Net cash used in discontinued operations                    (102,591)         (155,360)
                                                                    --------------    --------------

              Net cash ussed in operating activities                      (445,890)          115,707

CASH FLOWS FROM INVESTING ACTIVITIES
   Payments received on notes receivable                                    23,289              --
      Loans made on notes receivable                                       (17,939)          (15,722)
      Capital expenditures                                                    (160)           (4,938)
                                                                    --------------    --------------

              Net cash provided by (used in) investing activities            5,190           (20,660)

CASH FLOWS FROM FINANCING ACTIVITIES
   Payments on capital leases                                                 --              (1,493)
   Principal payments on borrowings                                        (33,100)             --
   Issuance of common stock                                                  1,000              --
   Proceeds from loans and warrants                                        472,800           107,950
                                                                    --------------    --------------

             Net cash provided by financing activities                     440,700           106,457
                                                                    --------------    --------------

         Net increase (decrease) in cash                                      --             (29,910)

 CASH AND CASH EQUIVALENTS, beginning of year                                 --              29,910
                                                                    --------------    --------------

 CASH AND CASH EQUIVALENTS, at end of year                          $         --      $         --
                                                                    ==============    ==============

SUPPLEMENTAL DISCLOUSURES
  OF CASH FLOWS INFORMATION
        Cash paid during the period for interest                    $       39,180    $       44,955
                                                                    ==============    ==============
</TABLE>

                                       F4
<PAGE>

NOTE 1: BASIS OF PRESENTATION

The accompanying  unaudited consolidated financial statements have been prepared
in  accordance  with  generally  accepted  accounting   principles  for  interim
financial information and with the instructions to Form 10-QSB and Rule 10-01 of
Regulations  S-X.  They do not include  all  information  and notes  required by
generally  accepted  accounting  principles for complete  financial  statements.
However,  except  as  disclosed,  there  has  been  no  material  change  in the
information disclosed in the notes to consolidated financial statements included
in the Annual Report on Form 10-KSB of MB Software Corporation (the Company) for
the year ended December 31, 2001 In the opinion of management,  all  adjustments
(consisting  of  normal  recurring  accruals)  considered  necessary  for a fair
presentation  have been  included in the  operating  results for the three month
period ended March 31, 2002 and are not  necessarily  indicative  of the results
that may be expected for the year ending December 31, 2002.

NOTE 2: ORGANIZATION AND NATURE OF OPERATIONS

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 working capital 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.

The Company plans to raise capital by obtaining  financing  through private debt
placement.  Management  believes  that if the  Company  is  successful  in those
private  placement  efforts,  then the Company will have  sufficient  capital to
continue its operations until the Company becomes profitable.

NOTE 3: RELATED PARTIES

Included in notes payable is related party payables of $2,400,282 and $1,766,820
for 2002 and 2001, respectively.

NOTE 4: SUBSEQUENT EVENT

On May 8, 2002, the Company agreed to the Restructure  and Settlement  Agreement
with Imagine Investments,  Inc. (Imagine). In accordance with the agreement, the
Company will convert  340,000  shares of Series A Convertible  Preferred  Stock,
dividends in arrears,  convertible  debt and accrued  interest on the debt,  all
held by Imagine,  into  4,500,000  shares of common  stock and the Company  will
convey to Imagine its ownership in NFPM. No gain or loss on the transaction with
the preferred  stockholder will be recognized.  The transaction will result in a
net increase in stockholders equity of approximately $600,000.


                                       3
<PAGE>

ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

The  following  discussion  should  be read in  conjunction  with the  Financial
Statements and Notes contained herein.

Forward-looking  statements  in this  Form  10-Q are made  pursuant  to the safe
harbor provisions of the Private Securities  Litigation Reform Act of 1995. Such
forward-looking  statements are subject to certain risks and uncertainties  that
could cause actual results to differ  materially from those  projected.  Readers
are cautioned not to place undue reliance on these  forward-looking  statements,
which speak only as of the date hereof.

Effective May 8, 2002 in accordance  with the terms of the previously  announced
Restructure  and  Settlement  Agreement  dated  as  of  November  5,  2001  (the
"Restructure  and  Settlement   Agreement"),   among  the  Company,   Healthcare
Innovations,  LLC,  Imagine  Investments,  Inc.  ("Imagine")  and XHI2(2),  Inc.
("XHI(2)"),  the Company  completed the sale of its medical clinics  business to
XHI(2). In exchange for the sale, Imagine and XHI(2) surrendered to the Company,
the Company's  promissory  notes in the aggregate  principal amount of $800,000,
plus all  interest  due  thereunder,  and all shares of the  Company's  Series A
Preferred Stock (340,000 shares in the aggregate) held by Imagine and XHI(2). In
addition to receiving the Company's medical clinic business,  Imagine and XHI(2)
also received an aggregate of 4,500,000  shares of the  Company's  common stock.
The Settlement and  Restructure  Agreement was approved at the Company's  Annual
Meeting of Shareholders held on February 11, 2002.

In July of 2001, the Company acquired certain proprietary technology designed to
enable Internet transaction devices (ITDs) to be used as transaction  processing
devices in the field.  The Company  acquired  these  technology  assets with the
intent to provide transaction services to physicians' practices.

In the first quarter of 2002, the Company  continued to focus on the development
of the ITD  technology,  which the  Company  believes  will serve as the key for
processing transactions for healthcare customers,  with the intent of leveraging
this  platform  to connect a variety of  healthcare-related  businesses  via the
Internet.  Currently  anticipated  transactions  that can be  conducted  via the
Company's ITD platform include:  insurance verification,  pharmacy order, email,
and  potentially  credit card  transactions.  The Company  will focus all of its
activity on the transaction  processing business that the Company believes to be
the market for future growth.

Three Months Ended March 31,2002 Compared to Three Months Ended March 31, 2001.

The  Company  through  the  Restructure  and  Settlement  Agreement  (previously
mentioned  above)  has  divested  its  self  of its  medical  clinics  business.
Therefore,  the results of operation summarized below will reflect the unaudited
discontinued operations results.

The following  summarizes  the results of operations  for the three months ended
March 31, 2002 and March 31, 2001 of the  discontinued  operations of the clinic
as outlined in the Restructure and Settlement Agreement.


                                       4
<PAGE>

     Medical  Activities:                       2002                  2001
                                              --------              --------

Income (Loss) Discontinued Operations         $ 15,628              $254,157

The  following  compares  the results of  operations  for the three months ended
March 31, 2002 and March 31, 2001 without the discontinued clinic operations.

The selling,  general and administrative  expenses increased to $267,745 for the
three  months  ended March 31, 2002 as compared to $248,615 for the three months
ended  March  31,  2001.  The  increase  is  attributed  to cost for the  annual
shareholders meeting and development cost associated with ITDs.

The net loss from  continuing  operations  increased to ($451,663) for the three
months ended March 31, 2002, as compared to a loss from continuing operations of
($283,400) for the three months ended March 31, 2001.

Liquidity and Capital Resources
-------------------------------

The  Company's  continuing  operations  used  $343,299  of cash during the three
months  ended March 31, 2002 as  compared to  providing  cash of $39,653 for the
quarter ended March 31,2001.

As of March 31, 2002,  the Company had working  capital  deficits of $3,383,904.
The working capital as of March 31, 2001 was $2,999,606.  At March 31, 2002, the
Company had outstanding checks in excess of bank balances of $6,741. To increase
working capital,  the Company is concentrating  its efforts to distribute volume
units of its ITDs.

During  the  three  months  ended  March  31,  2002,  the  Company  had  capital
expenditures  for the purchase of equipment  totaling $160. The Company does not
anticipate  any major purchase of equipment for the remaining nine (9) months of
2002.



PART II - OTHER INFORMATION

ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS

On February 11, 2002, the Annual Meeting of  Shareholders  was held. In addition
to the election of directors,  the following matters were presented and approved
by the shareholders:

The  Restructure  and Settlement  Agreement was ratified and approved,  with the
shareholders represented at the meeting voting as follows:

   For                     Against                   Abstain
   40,564,833              None                      None


                                       5
<PAGE>

In addition,  the shareholders approved a merger agreement pursuant to which the
Company  would  be  reincorporated  as a Texas  corporation  and the name of the
Company would be changed to eAppliance Innovations,  Inc., with the shareholders
at the meeting voting as follows:

 For                       Against                   Abstain
 40,564,833                None                      None

ITEM 6. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

(a) Exhibits - All exhibits are  incorporated  by reference  from prior  filings
with the Commission.


                                   SIGNATURES


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


                                        MB SOFTWARE CORPORATION


Date: June 3, 2002                       /s/  Scott A. Haire
                                        ----------------------------------------
                                        Scott A.  Haire, Chairman of the Board,
                                        Chief Executive Officer and President
                                        (Principal Financial Officer)