<PAGE>

                     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, 1999

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

For the transition period from                 to                
                               ---------------    ---------------

COMMISSION FILE NUMBER 0-22247

                                NM HOLDINGS, INC.
        (Exact name of Small Business Issuer as specified in its charter)

           MINNESOTA                                    41-1756256
  (State or other jurisdiction                      (I.R.S. Employer
of incorporation or organization)                 Identification Number)


            9850 51ST AVENUE NORTH, SUITE 110, MINNEAPOLIS, MN 55442
                    (Address of principal executive offices)


                                 (612) 551-9595
                           (Issuer's telephone number)

     Check whether the issuer (1) filed all reports required to be filed by 
Section 13 or 15(d) of the Exchange Act during the past 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
   ---   ---

     State the number of shares outstanding of each of the issuer's classes of
common equity, as of the last practicable date:

<TABLE>
<CAPTION>
               Class                  Outstanding as of May 1, 1999
               -----                  -----------------------------
<S>                                   <C>
     Common Stock, $.04 par value           1,238,876 shares

</TABLE>

Transitional Small Business Disclosure Format (Check one): Yes     No  X
                                                               ---    ---

<PAGE>

                                NM HOLDINGS, INC.

                                      INDEX

                         PART I - FINANCIAL INFORMATION

<TABLE>
<CAPTION>

                                                                     Page No.
                                                                     --------
<S>                                                                 <C>
Item 1.   Financial Statements

              Statements of Operations (Unaudited) For the Three
              Months Ended March 31, 1999 and 1998                       2

              Balance Sheets (Unaudited) As of March 31, 1999
              and December 31, 1998                                      3

              Statements of Cash Flows (Unaudited) For the Three
              Months Ended March 31, 1999 and 1998                       4

              Notes to Financial Statements (Unaudited)                  5

Item 2.   Management's Discussion and Analysis of Financial
          Condition and Results of Operations                            7

                      PART II - OTHER INFORMATION

Item 5.   Other Information                                             11

Item 6.   Exhibits and Reports on Form 8-K                              11

</TABLE>


                                      -1-

<PAGE>

                         PART I -- FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
                                                     NM HOLDINGS, INC.
                                                 STATEMENTS OF OPERATIONS
                                                        (UNAUDITED)
                                                --------------------------
                                                    THREE MONTHS ENDED
                                                         MARCH 31,
                                                --------------------------
                                                    1999           1998
                                                -----------    -----------
<S>                                             <C>            <C>        
Investment income                               $    17,534    $        --
Administrative expenses                             (59,511)            --
                                                -----------    -----------
Income from continuing operations                   (41,977)            --
Loss from discontinued operations                        --         49,153
                                                -----------    -----------
Net income (loss)                               $   (41,977)   $    49,153
                                                ===========    ===========

Loss per share data (basic and diluted):
Loss from continuing operations                 $      (.04)   $        --
Income from discontinued operations                      --            .04
                                                -----------    -----------
Net income (loss) per share                     $      (.04)   $       .04
                                                ===========    ===========
Weighted average number of shares outstanding     1,152,145      1,364,006

</TABLE>

                 See accompanying notes to financial statements


                                      -2-

<PAGE>

                                NM HOLDINGS, INC.
                                 BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                         MARCH 31,     DECEMBER 31,
                                                                           1999            1998
                                                                        -----------    -----------
                                                                        (Unaudited)
<S>                                                                     <C>            <C>        
ASSETS
Current assets:
   Cash and cash equivalents                                            $ 1,939,275    $ 1,935,368
   Net assets of discontinued operations                                      7,905             --
   Prepaid expenses                                                          28,283          6,547
                                                                        -----------    -----------
Total current assets                                                      1,975,463      1,941,915
Investment in GalaGen Inc.                                                  617,675        498,125
Equipment and office furniture, net                                             745          6,102
                                                                        -----------    -----------
Total assets                                                            $ 2,593,883    $ 2,446,142
                                                                        ===========    ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
   Accounts payable                                                     $    23,344    $        --
   Accrued payroll                                                               --          4,690
   Net liabilities of discontinued operations                                    --         58,658
                                                                        -----------    -----------
Total current liabilities                                                    23,344         63,348

Shareholders' equity:
   Undesignated Preferred Stock, $.04 par value:
   Authorized shares - 1,250,000
   Issued and outstanding shares - none                                          --             --
   Common Stock, $.04 par value:
   Authorized shares - 5,000,000 shares
   Issued and outstanding shares - 1,226,626 - 1999; 1,150,251 - 1998        49,065         46,010
   Paid-in capital                                                        8,813,552      8,706,435
   Accumulated other comprehensive income                                   119,550             --
   Accumulated deficit                                                   (6,411,628)    (6,369,651)
                                                                        -----------    -----------
Total shareholders' equity                                                2,570,539      2,382,794
                                                                        -----------    -----------
Total liabilities and shareholders' equity                              $ 2,593,883    $ 2,446,142
                                                                        ===========    ===========
</TABLE>


                 See accompanying notes to financial statements


                                      -3-

<PAGE>

                                NM HOLDINGS, INC.
                            STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                   THREE MONTHS ENDED
                                                                                        MARCH 31,
                                                                               --------------------------
                                                                                   1999           1998
                                                                               -----------    -----------
<S>                                                                            <C>            <C>        
OPERATING ACTIVITIES
Net income (loss)                                                              $   (41,977)   $    49,153
Adjustments to reconcile net income (loss) to net cash provided by (used in)
operating activities:
   Depreciation                                                                      1,002         75,829
   Changes in operating assets and liabilities:
       Accounts receivable                                                              --         48,601
       Inventories                                                                      --        756,893
       Prepaid expenses                                                            (21,736)        18,684
       Accounts payable                                                             23,344       (370,862)
       Accrued liabilities                                                          (4,690)      (191,968)
                                                                               -----------    -----------
Net cash provided by (used in) operating activities                                (44,057)       386,330

INVESTING ACTIVITIES
Sale (purchase) of equipment and office furniture                                    4,355        (52,422)
Decrease in net liabilities of discontinued operations                             (66,563)            --
                                                                               -----------    -----------
Net cash used in investing activities                                              (62,208)       (52,422)

FINANCING ACTIVITIES
Proceeds from issuance of Common Stock                                             110,172             --
                                                                               -----------    -----------
Net cash provided by financing activities                                          110,172             --
                                                                               -----------    -----------

Increase in cash                                                                     3,907        333,908
Cash at beginning of period                                                      1,935,368      1,647,482
                                                                               -----------    -----------
Cash at end of period                                                          $ 1,939,275    $ 1,981,390
                                                                               ===========    ===========
</TABLE>

                 See accompanying notes to financial statements


                                      -4-

<PAGE>

                                NM HOLDINGS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.   BASIS OF PRESENTATION

     The condensed financial statements as of March 31, 1999 and for the
three-month periods ended March 31, 1999 and 1998 included in this Form 10-QSB
have been prepared by NM Holdings, Inc. (the "Company") pursuant to the rules
and regulations of the Securities and Exchange Commission. Certain information
and footnote disclosures, normally included in financial statements prepared in
accordance with generally accepted accounting principles, have been condensed or
omitted pursuant to such rules and regulations. These financial statements
should be read in conjunction with the financial statements and related notes
thereto included in the Company's Annual Report on Form 10-KSB for the year
ended December 31, 1998.

     The condensed financial statements presented herein as of March 31, 1999
and for the three-month periods ended March 31, 1999 and 1998 are unaudited, but
in the opinion of management, reflect all adjustments, consisting of normal
recurring adjustments, necessary for a fair presentation of financial position,
results of operations and cash flows for the periods presented. The results of
operations for any interim period are not necessarily indicative of results for
the full year.

2.   NATURE OF OPERATIONS

     NM Holdings, Inc., as a result of the disposition of its nutrition business
operations in December 1998, has no meaningful operations. The Company intends
to use its existing cash resources, together with debt or equity financing that
may be available, to pursue the potential acquisition of other business
opportunities. Prior to the December 1998 disposition, the Company, operating
under the name Nutrition Medical, Inc., focused on the development and marketing
of a line of branded generic critical care nutrition products for the
hospital/nursing home market, as well as private label nutrition products for
sale through retail chains.

3.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     INVESTMENT IN MARKETABLE SECURITIES

     The Company's investments are comprised of marketable securities (common
stock received in December 1998 relating to the sale of the Company's critical
care nutrition formula product line to GalaGen Inc.) and are classified as
available-for-sale. Available-for-sale securities are reported at fair value
with a corresponding entry for any unrealized gains and losses recorded as a
component of Shareholders' Equity in the account "Accumulated other
comprehensive income."


                                      -5-

<PAGE>

                                NM HOLDINGS, INC.
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)
                                   (UNAUDITED)

4.   MERGER WITH MJK HOLDINGS, INC.

     On March 25, 1999, the Company entered into an agreement with MJK Holdings,
Inc. ("MJK") pursuant to which a newly formed wholly-owned subsidiary of the
Company will merge with and into MJK, which shall then be a wholly-owned
subsidiary of the Company. MJK is the parent company of Miller, Johnson & Kuehn,
Incorporated, a brokerage and investment banking firm located in Minneapolis,
Minnesota. Company shareholders will retain an approximate 6.4% interest in the
Company following the merger transaction. The closing of the transaction is
subject to various closing conditions, including, but not limited to, the
approval of the Company's shareholders.








                                      -6-

<PAGE>

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

CAUTIONARY STATEMENT

     This Quarterly Report on Form 10-QSB contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. When used in
this Form 10-QSB and in future filings by the Company with the Securities and
Exchange Commission, in the Company's press releases and in oral statements made
with the approval of an authorized executive officer, the words or phrases
"believes," "anticipates," "intends," "will likely result," "estimates,"
"projects" or similar expressions are intended to identify such forward-looking
statements, but are not the exclusive means of identifying such statements.
These forward-looking statements involve risks and uncertainties that may cause
the Company's actual results to differ materially from the results discussed in
the forward-looking statements. The Company wishes to caution readers not to
place undue reliance on any such forward-looking statements, which speak only as
of the date made. The Company undertakes no obligation to revise any
forward-looking statements in order to reflect events or circumstances after the
date of such statements. Readers are urged to carefully review and consider the
various disclosures made by the Company in this report and in the Company's
other reports filed with the Securities and Exchange Commission that attempt to
advise interested parties of the risks and factors that may affect the Company's
business. Such forward-looking statements are qualified in their entirety by the
cautions and risk factors set forth under the "Cautionary Statement" filed as
exhibit 99.1 to this Form 10-QSB.

GENERAL

     Prior to December 23, 1998, the Company developed and sold generic critical
care nutrition formula products and related delivery equipment and accessories
for the hospital, nursing home and home health care markets, as well as private
label adult nutrition products for sale through retail chains. In January 1998,
the Company announced its intention to discontinue its private label adult
nutrition business due to continued losses. Since its inception, the Company
also incurred losses in its critical care nutrition business. Company management
believed that the continued operation of the Company's critical care nutrition
business was not viable due to the lack of synergy between its critical care
products and the acquired feeding pump and plastic disposables business.
Furthermore, the Company was experiencing increased competition from larger
organizations and faced the risk of product obsolescence due to the limited
amount of available research and development funding. Certain patent
infringement lawsuits also adversely affected the Company's ability to market
its product lines effectively.

     In light of the foregoing, the Board of Directors determined that it was 
in the best interest of the Company and its shareholders to discontinue the 
Company's critical care nutrition business operations. The Board of Directors 
believed that the Company would maximize shareholder value by selling the 
assets comprising the Company's current businesses and using the proceeds to 
settle outstanding debt incurred from the purchase of the pump and plastic 
disposables business from Elan Pharma, Inc. ("Elan"), and pursue the 
acquisition of other businesses. On December 23, 1998, the Company closed a 
sale transaction with ZEVEX, Inc. pursuant to which the Company sold all of 
its 


                                       -7-

<PAGE>

assets used in its pump and plastic disposables business, and a sale 
transaction with GalaGen Inc. pursuant to which the Company sold all of its 
assets used in its critical care business. The Company does not currently 
conduct any active business operations. Since December 23, 1998, the Company 
has used its existing cash resources to pursue a business combination with 
another entity engaged in other lines of business.

     The Company believes that the sale of its product lines, its reduction 
in liabilities through the cancellation of the Elan subordinated promissory 
note, and the reduction in the number of shares outstanding through the 
reacquisition of the Company's $.04 par value common stock (the "Common 
Stock") issued to Elan has positioned the Company as an attractive business 
partner for an entity seeking a strategic combination with a publicly traded 
corporation. Company management and the Board of Directors believe that such 
a combination will serve the interests of the Company's shareholders better 
than a liquidation of the Company and distribution of its assets to 
shareholders.

     On March 25, 1999, the Company entered into an agreement with MJK 
Holdings, Inc. ("MJK") pursuant to which a newly formed wholly-owned 
subsidiary of the Company will merge with and into MJK, which shall then be a 
wholly-owned subsidiary of the Company. MJK is the parent company of Miller, 
Johnson & Kuehn, Incorporated a brokerage and investment banking firm located 
in Minneapolis, Minnesota. Company shareholders will retain an approximate 
6.4% interest in the Company following the merger transaction. The closing of 
the transaction is subject to various closing conditions, including, but not 
limited to, the approval of the Company's shareholders.

     If the Company's shareholders approve the agreement with MJK, it is the 
Board of Directors' intention to complete the transaction with MJK. If for 
any reason the transaction with MJK is not consummated, it is the Board of 
Directors' intention to pursue business combinations with entities engaged in 
other lines of business, using the Company's cash resources (approximately 
$1.9 million as of March 31, 1999) together with other resources. The 
consummation of any such alternative transaction may require additional debt 
or equity financing. However, the Company has no current plan to obtain 
additional financing and no assurance can be given that such financing will 
be available to acquire a particular business.

RESULTS OF OPERATIONS

     THREE MONTHS ENDED MARCH 31, 1999 AND 1998

          CONTINUING OPERATIONS

     The loss from continuing operations totaled $41,977 as of March 31,1999, 
and consists of recurring administrative expenses incurred in the period, 
offset by interest income earned in the same period.


                                      -8-

<PAGE>

     DISCONTINUED OPERATIONS

     The Company discontinued all operations in 1998. All pre-disposal activity
associated with these operations in the 1998 period has been segregated and
reported in a single line item "Loss from discontinued operations" in the
Company's Statements of Operations.

     Sales included in discontinued operations for the three months ended March
31, 1998 totalled $2.2 million. During this period, the Company incurred direct
and indirect expenses of approximately $2.15 million, resulting in net income of
the $49,000 or $.04 per share, based on average outstanding shares of 1.4
million.

YEAR 2000

     The Company is addressing the issues associated with computing difficulties
that may affect existing computer systems as a result of programming code
malfunctions in distinguishing 21st century dates from 20th century dates (the
"Year 2000" issue). The Year 2000 issue is a pervasive problem affecting many
information technology systems and embedded technologies in all industries. The
Company has reviewed its internal financial and other process control systems in
order to assess and remediate Year 2000 concerns.

     The Company's information technology ("IT") systems consist of computer
hardware systems and software supplied by third parties. The Company utilizes
current generation off-the-shelf software for its contact management and
accounting systems. As a result, the Company expects its exposure to be minimal
since such software has been determined by the Company to be Year 2000
compliant.

     The Company's assessment of internal systems includes a review of
non-information technology ("non-IT" systems) (systems that contain embedded
technology in process control equipment containing microprocessors or other
similar circuitry). This assessment includes a review of the Company's internal
equipment and facilities (including building maintenance, security, electrical,
lighting, fire protection, telephone, heating and cooling systems). Based on
this review, the Company believes that its non-IT systems and equipment are Year
2000 compliant.

     The Company's current plans, as previously discussed, involve the 
pursuit of new investment opportunities. Due diligence with any potential 
acquisition candidate will include a review of any Year 2000 exposure.

     Since the Company has not yet consummated a business acquisition, the
Company is unable to estimate Year 2000 compliance costs that may arise from
such business acquisition opportunities.

LIQUIDITY AND CAPITAL RESOURCES

     Since inception, the Company has incurred losses and negative cumulative 
cash flows from operations. On September 26, 1996, the Company's initial 
public offering was declared effective and, in a transaction that closed on 
October 1, 1996, the Company sold 359,375 shares of the Company's common 
stock at $14.00 per share, including an over-allotment of 49,375 shares. 
After 

                                      -9-

<PAGE>

deducting all offering costs, net proceeds to the Company totaled $4.24 
million. Prior to the initial public offering, the Company's principal source 
of cash and working capital had been from the private placement of the 
Company's common stock, through which the Company received approximately $2.8 
million in net proceeds. In connection with activities and results of 
discontinued operations described above, the Company's net cash used in 
operations for the three months ended March 31, 1999, totaled $44,057, 
compared with cash provided by operations totaling $386,330 in the 1998 
period. Net cash used in investing activities related to the discontinued 
operations totaled $262,293. As of March 31, 1999, cash and cash equivalents 
totaled $1,939,275. All unused funds are invested in U.S.Treasury-backed 
funds with maturities, generally ranging under three months.

     Management is unable to assess the Company's future liquidity and 
capital requirements due to the Company's stated desire to enter into 
different business opportunities. There can be no assurance that the Company 
will not be required to raise additional capital before the end of 1999, or 
any time thereafter, or that such capital will be available on acceptable 
terms, or at all, in order to successfully consummate business transactions.







                                     -10-

<PAGE>

                           PART II - OTHER INFORMATION

ITEM 5. OTHER INFORMATION

     (a) On May 7, 1999, the Company received a determination from a Nasdaq 
List Qualification Panel (the "Panel") that the Common Stock would be 
delisted from trading on The Nasdaq SmallCap Market effective as of the close 
of trading on the same date. The determination follows an oral delisting 
hearing held on March 26, 1999. In its decision, the Panel noted that the 
Company's current status as a "shell" corporation with no active business 
operations did not provide investors sufficient information to determine the 
potential of an investment in the Company. The Company's current market 
makers are in the process of complying with the applicable requirements for 
trading the Common Stock in the Over the Counter Bulletin Board. In its 
order, the Panel invited the Company to apply for initial listing of its 
securities upon the consummation of the merger transaction with MJK (the 
"Merger"). In light of the Panel's invitation to apply for listing upon 
consummation of the Merger, the Company and MJK intend to proceed with the 
consummation of the Merger and intend to apply for listing of the Company's 
securities, including shares of Common Stock issued to MJK shareholders in 
connection with the Merger, on The Nasdaq National Market System.

     (b) Hilding C. Nelson resigned as a director of the Company effective March
31, 1999.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

     (a) The following exhibits are included with this quarterly report on Form
10-QSB as required by Item 601 of Regulation S-B.

<TABLE>
<CAPTION>

Exhibit
Number                                   Description
-------    --------------------------------------------------------------------
<S>       <C>
  2.1      Agreement and Plan of Reorganization by and among the Company, MJK 
           Holdings, Inc., and NM Merger Co. dated March 25, 1999, as amended on
           May 7, 1999
 11.1      Statement of Computation of Loss Per Share
 27        Financial Data Schedule
 99.1      Cautionary Statement

</TABLE>

     (b) Reports on Form 8-K. The Company filed a Form 8-K on January 7, 
1999, in connection with the consummation of the sale transactions between 
the Company and ZEVEX, Inc. and GalaGen Inc., respectively, the Company's 
corporate name change from Nutrition Medical, Inc. to NM Holdings, Inc., and 
the settlement of the litigation proceeding with Novartis Nutrition. The 
Company filed a Form 8-K/A on March 3, 1999, which included proforma 
financial information of the Company in connection with the ZEVEX, Inc. and 
GalaGen Inc. sale transactions.

                                     -11-

<PAGE>

                                    SIGNATURE

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

Dated:   May 17, 1999             NM HOLDINGS, INC.

                                  By:   /s/ Richard J. Hegstrand              
                                        ----------------------------------------
                                        Richard J. Hegstrand
                                        Chief Operating Officer
                                        (both on behalf of the Registrant and as
                                        principal financial officer)






                                      -12-