|        |                                 |                                          |                     |        |
|--------|---------------------------------|------------------------------------------|---------------------|--------|
|   | DELAWARE                        |                                     | 20-0428568          |   |
|   | (State or other jurisdiction of |                                     | (I.R.S. employer    |   |
|   | incorporation or organization)  |                                     | identification no.) |   |
|   |                            |                                     |                |   |
|   |                            | 5429 LYNDON B. JOHNSON FREEWAY           |                |   |
|   |                            | SUITE 850                                |                |   |
|   |                            | DALLAS, TEXAS                            |                |   |
|   |                            | 75240                                    |                |   |
|   |                            | (Address of principal executive offices) |                |   |
|   |                            | (Zip code)                               |                |   |

|                                                                              |                             |
|------------------------------------------------------------------------------|-----------------------------|
| Large accelerated filer o                                                    | Non-accelerated filer o     |
| Accelerated filer  o (do not check if a smaller reporting company) | Smaller Reporting Company x |

----

|                           |                            |                                                                                            |        |
|---------------------------|----------------------------|--------------------------------------------------------------------------------------------|--------|
|                      |                       |                                                                                       |   |
| Part I                    |                       | Financial Information                                                                      | 1      |
|                      | Item 1.                    | Financial Statements                                                                       | 1      |
|                      |                       | Consolidated Income Statements (unaudited)                                                 | 1      |
|                      |                       | Consolidated Balance Sheets (unaudited)                                                    | 2      |
|                      |                       | Consolidated Statements of Stockholders’ Equity (unaudited)                          | 3      |
|                      |                       | Consolidated Statements of Cash Flows (unaudited)                                          | 4      |
|                      |                       | Notes to Unaudited Consolidated Financial Statements                                       | 5      |
|                      | Item 2.                    | Management’s Discussion and Analysis of Financial Condition and Results of Operation | 12     |
|                      | Item 3.                    | Quantitative and Qualitative Disclosures About Market Risk                                 | 21     |
|                      | Item 4.                    | Controls and Procedures                                                                    | 21     |
| Part II    |                       | Other Information                                                                          | 21     |
|                      | Item 1A.    | Risk Factors                                                                               | 21     |
|                      | Item 2.                    | Unregistered Sales of Equity Securities and Use of Proceeds                                | 22     |
|                      | Item 6.                    | Exhibits                                                                                   | 22     |
|                      |                       | Signatures                                                                                 | 23     |

----

|                                                    |                                       |        |                                      |        |        |        |        |        |        |        |        |        |   |        |        |
|----------------------------------------------------|---------------------------------------|--------|--------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---|--------|--------|
|                                               | Three months ended September 30, |   | Nine months ended September 30, |
|                                               | 2010                                  |   | 2009                                 |   | 2010   |   | 2009   |
| Net revenues                                       | $                                     | 14,823 |                                 |   | $      | 18,235 |   |   | $      | 45,272 |   |   | $ | 51,425 |   |
| Cost of revenues:                                  |                                  |   |                                 |   |   |   |   |
| Provider payments                                  | 11,129                                |   |                                 | 13,800 |   |   | 33,351 |   |   | 38,670 |   |
| Administrative fees                                | 799                                   |   |                                 | 963    |   |   | 2,552  |   |   | 2,682  |   |
| Claims administration and provider development     | 1,189                                 |   |                                 | 1,178  |   |   | 3,597  |   |   | 3,259  |   |
| Total cost of revenues                             | 13,117                                |   |                                 | 15,941 |   |   | 39,500 |   |   | 44,611 |   |
| Contribution margin                                | 1,706                                 |   |                                 | 2,294  |   |   | 5,772  |   |   | 6,814  |   |
|                                               |                                  |   |                                 |   |   |   |   |   |   |   |   |
| Selling, general and administrative expenses       | 1,446                                 |   |                                 | 1,980  |   |   | 4,722  |   |   | 5,735  |   |
| Depreciation and amortization                      | 197                                   |   |                                 | 155    |   |   | 571    |   |   | 401    |   |
| Total operating expenses                           | 1,643                                 |   |                                 | 2,135  |   |   | 5,293  |   |   | 6,136  |   |
|                                               |                                  |   |                                 |   |   |   |   |
| Operating income                                   | 63                                    |   |                                 | 159    |   |   | 479    |   |   | 678    |   |
|                                               |                                  |   |                                 |   |   |   |   |   |   |   |   |
| Other income (expense):                            |                                  |   |                                 |   |   |   |   |   |   |   |   |
| Interest income, net                               | 22                                    |   |                                 | 31     |   |   | 67     |   |   | 107    |   |
| Unrealized gain (loss) on warrant derivative       | 2                                     |   |                                 | (22    | )      |   | 18     |   |   | 232    |   |
| Total other income, net                            | 24                                    |   |                                 | 9      |   |   | 85     |   |   | 339    |   |
|                                               |                                  |   |                                 |   |   |   |   |   |   |   |   |
| Income before income taxes                         | 87                                    |   |                                 | 168    |   |   | 564    |   |   | 1,017  |   |
| Income tax provision                               | 43                                    |   |                                 | 21     |   |   | 220    |   |   | 57     |   |
| Net income                                         | $                                     | 44     |                                 |   | $      | 147    |   |   | $      | 344    |   |   | $ | 960    |   |
| Earnings per common share:                         |                                  |   |                                 |   |   |   |   |   |   |   |   |
| Basic                                              | $                                     | 0.00   |                                 |   | $      | 0.01   |   |   | $      | 0.02   |   |   | $ | 0.06   |   |
| Diluted                                            | $                                     | 0.00   |                                 |   | $      | 0.01   |   |   | $      | 0.02   |   |   | $ | 0.04   |   |
|                                               |                                  |   |                                 |   |   |   |   |   |   |   |   |
| Basic weighted average common shares outstanding   | 16,631                                |   |                                 | 15,432 |   |   | 16,413 |   |   | 15,425 |   |
| Diluted weighted average common shares outstanding | 17,124                                |   |                                 | 17,572 |   |   | 17,169 |   |   | 17,972 |   |

----

|                                                                                                                                         |                                 |        |                        |         |        |        |        |
|-----------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|--------|------------------------|---------|--------|--------|--------|
|                                                                                                                                    | September 30, 2010  (Unaudited) |   | December 31, 2009 |
|                                                                                                                                    |                            |
| ASSETS                                                                                                                                  |                            |   |                   |
| Current assets:                                                                                                                         |                            |   |                   |
| Cash and cash equivalents                                                                                                               | $                               | 11,987 |                   |    | $      | 11,868 |   |
| Accounts receivable, net                                                                                                                | 6,391                           |   |                   | 7,474   |   |
| Prepaid expenses and other current assets                                                                                               | 718                             |   |                   | 822     |   |
| Deferred income taxes                                                                                                                   | 143                             |   |                   | 576     |   |
| Total current assets                                                                                                                    | 19,239                          |   |                   | 20,740  |   |
|                                                                                                                                    |                            |   |                   |    |   |
| Property and equipment, net                                                                                                             | 1,853                           |   |                   | 1,762   |   |
|                                                                                                                                    |                            |   |                   |    |
| Other assets:                                                                                                                           |                            |   |                   |    |
| Deferred income taxes                                                                                                                   | 557                             |   |                   | 317     |   |
| Other non-current assets                                                                                                                | 402                             |   |                   | 657     |   |
| Intangible assets, net                                                                                                                  | 1,057                           |   |                   | 1,153   |   |
| Goodwill                                                                                                                                | 4,361                           |   |                   | 4,361   |   |
|                                                                                                                                    | $                               | 27,469 |                   |    | $      | 28,990 |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                    |                            |   |                   |    |   |
| Current liabilities:                                                                                                                    |                            |   |                   |    |   |
| Due to service providers                                                                                                                | $                               | 5,389  |                   |    | $      | 7,702  |   |
| Accounts payable and accrued liabilities                                                                                                | 1,701                           |   |                   | 1,980   |   |
| Total current liabilities                                                                                                               | 7,090                           |   |                   | 9,682   |   |
|                                                                                                                                    |                            |   |                   |    |   |
| Warrant derivative liability                                                                                                            | —                         |   |                   | 18      |   |
|                                                                                                                                    |                            |   |                   |    |
| Commitments and contingencies                                                                                                           |                            |   |                   |    |   |
|                                                                                                                                    |                            |   |                   |    |
| Shareholders' equity:                                                                                                                   |                            |   |                   |    |
| Preferred stock, $0.01 par value; 10,000 shares authorized, none issued                                                                 | —                         |   |                   | — |   |
| Common stock, $0.01 par value; 40,000 shares authorized; 16,922 and 15,642 shares issued and outstanding in 2010 and 2009, respectively | 169                             |   |                   | 156     |   |
| Additional paid-in capital                                                                                                              | 21,337                          |   |                   | 20,605  |   |
| Accumulated deficit                                                                                                                     | (1,127                          | )      |                   | (1,471  | )      |
| Total shareholders' equity                                                                                                              | 20,379                          |   |                   | 19,290  |   |
|                                                                                                                                    | $                               | 27,469 |                   |    | $      | 28,990 |   |

----

|                                                                  |              |        |         |         |             |        |               |        |        |         |        |        |        |        |        |   |        |        |
|------------------------------------------------------------------|--------------|--------|---------|---------|-------------|--------|---------------|--------|--------|---------|--------|--------|--------|--------|--------|---|--------|--------|
|                                                             |         |   |    |    | Additional  |   |          |   | Total  |
|                                                             | Common Stock |   | Paid-in |    | Accumulated |   | Stockholders' |
|                                                             | Shares       |   | Amount  |    | Capital     |   | Deficit       |   | Equity |
| Balance at December 31, 2009                                     | 15,642       |   |    | $       | 156         |   |          | $      | 20,605 |    |   | $      | (1,471 | )      |   | $ | 19,290 |   |
| Net income                                                       | —      |   |    | — |        |   | —       |   |   | 344     |   |   | 344    |   |
| Stock-based compensation expense                                 | —      |   |    | — |        |   | 606           |   |   | — |   |   | 606    |   |
| Issuance of common stock upon exercise of restricted stock units | 23           |   |    | 1       |        |   | (19           | )      |   | — |   |   | (18    | )      |
| Issuance of common stock upon exercise of stock warrants         | 1,257        |   |    | 12      |        |   | 145           |   |   | — |   |   | 157    |   |
| Balance at September 30, 2010                                    | 16,922       |   |    | $       | 169         |   |          | $      | 21,337 |    |   | $      | (1,127 | )      |   | $ | 20,379 |   |

----

|                                                                         |                                      |        |        |         |        |         |        |
|-------------------------------------------------------------------------|--------------------------------------|--------|--------|---------|--------|---------|--------|
|                                                                    | Nine months ended September 30, |
|                                                                    | 2010                                 |   | 2009   |
| Cash flows from operating activities:                                   |                                 |   |   |
| Net income                                                              | $                                    | 344    |   |    | $      | 960     |   |
| Adjustments to reconcile net income to net cash provided by operations: |                                 |   |   |
| Stock-based compensation expense                                        | 606                                  |   |   | 1,026   |   |
| Depreciation and amortization                                           | 571                                  |   |   | 401     |   |
| Unrealized gain on warrant derivative                                   | (18                                  | )      |   | (232    | )      |
| Amortization of long-term client agreement                              | 187                                  |   |   | 188     |   |
| Client administration fee expense related to warrants                   | 150                                  |   |   | 106     |   |
| Deferred income taxes                                                   | 193                                  |   |   | — |   |
| Changes in operating assets and liabilities:                            |                                 |   |   |
| Accounts receivable                                                     | 1,083                                |   |   | (1,420  | )      |
| Prepaid expenses and other assets                                       | 22                                   |   |   | (125    | )      |
| Accounts payable and accrued liabilities                                | (298                                 | )      |   | (1,001  | )      |
| Due to service providers                                                | (2,313                               | )      |   | 902     |   |
| Net cash provided by operating activities                               | 527                                  |   |   | 805     |   |
|                                                                    |                                 |   |   |    |   |
| Cash flows from investing activities:                                   |                                 |   |   |    |   |
| Investment in software development costs                                | (283                                 | )      |   | (464    | )      |
| Additions to property and equipment                                     | (282                                 | )      |   | (593    | )      |
| Net cash used in investing activities                                   | (565                                 | )      |   | (1,057  | )      |
|                                                                    |                                 |   |   |    |   |
| Cash flows from financing activities:                                   |                                 |   |   |    |   |
| Proceeds from exercise of equity warrants                               | 157                                  |   |   | 13      |   |
| Proceeds from exercise of equity incentive awards                       | —                              |   |   | 3       |   |
| Net cash provided by financing activities                               | 157                                  |   |   | 16      |   |
|                                                                    |                                 |   |   |    |   |
| Net increase (decrease) in cash and cash equivalents                    | 119                                  |   |   | (236    | )      |
| Cash and cash equivalents at beginning of period                        | 11,868                               |   |   | 10,578  |   |
|                                                                    |                                 |   |   |    |   |
| Cash and cash equivalents at end of period                              | $                                    | 11,987 |   |    | $      | 10,342  |   |
|                                                                    |                                 |   |   |    |   |
| Supplemental cash flow information:                                     |                                 |   |   |
| Cash paid for taxes                                                     | $                                    | 134    |   |    | $      | — |   |
|                                                                    |                                 |   |   |
| Supplemental non-cash financing activity:                               |                                 |   |   |
| Warrants issued as payment of client administrative fees                | —                              |   |   | 311     |   |
| Income tax withholdings on exercise of equity incentives                | $                                    | 19     |   |    | $      | — |   |

----

|                             |                                                   |
|-----------------------------|---------------------------------------------------|
| (1)     | Description of Business and Basis of Presentation |

|                                |                                                                                                                                                                                                                                             |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | lowering our payors’ ancillary care costs throughout our network of high quality, cost effective ancillary service providers that we have under contract at more favorable terms than our payors could generally obtain on their own; |

|                                |                                                                                                                                                                                                                           |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | providing payors with a comprehensive network of ancillary healthcare services providers that is tailored to each payor’s specific needs and is available to each payor’s covered lives for covered services; |

|                                |                                                                                          |
|--------------------------------|------------------------------------------------------------------------------------------|
| •     | providing payors with claims management, reporting, and processing and payment services; |

|                                |                                                                                                                                                                  |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | performing network/needs analysis to assess the benefits to payors of adding additional/different service providers to the payor specific provider networks; and |

|                                |                                                                                                |
|--------------------------------|------------------------------------------------------------------------------------------------|
| •     | credentialing network service providers for inclusion in the payor specific provider networks. |

----

|                             |                     |
|-----------------------------|---------------------|
| (2)     | Revenue Recognition |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | The Company is the primary obligor in the arrangement.  The Company has assessed its role as primary obligor as a strong indicator of gross reporting.  The Company believes that it is the primary obligor in its transactions because it is responsible for providing the services desired by its client payors.  The Company has distinct, separately negotiated contractual relationships with its client payors and with the ancillary health care providers in its networks.  The Company does not negotiate “on behalf of” its client payors and does not hold itself out as the agent of the client payors when negotiating the terms of the Company’s ancillary healthcare service provider agreements.  The Company’s agreements contractually prohibit client payors and service providers to enter into direct contractual relationships with one another.  The client payors have no control over the terms of the Company’s agreements with the service providers.  In executing transactions, the Company assumes key performance-related risks.  The client payors hold the Company responsible for fulfillment, as the provider, of all of the services the client payors are entitled to under their contracts; client payors do not look to the service providers for fulfillment.  In addition, the Company bears the pricing/margin risk as the principal in the transactions.  Because the contracts with the client payors and service providers are separately negotiated, the Company has complete discretion in negotiating both the prices it charges its client payors and the financial terms of its agreements with the service providers.  Since the Company’s profit is the spread between the amounts received from the client payors and the amount paid to the service providers, it bears significant pricing/margin risk.  There is no guaranteed mark-up payable to the Company on the amount the Company has contracted.  Thus, the Company bears the risk that amounts paid to the service provider will be greater than the amounts received from the client payors, resulting in a loss or negative claim. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | The Company has latitude in establishing pricing.  As stated above, the Company has complete latitude in negotiating the price to be paid to the Company by each client payor and the price to be paid to each contracted service provider.  This type of pricing latitude indicates that the Company has the risks and rewards normally attributed to a principal in the transactions. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | The Company changes the product or performs part of the services.  The Company provides the benefits associated with the relationships it builds with the client payors and the services providers.  While the parties could deal with each other directly, the client payors would not have the benefit of the Company’s experience and expertise in assembling a comprehensive network of service providers, in claims management, reporting and processing and payment services, in performing network/needs analysis to assess the benefits to client payors of adding additional/different service providers to the client payor-specific provider networks, and in credentialing network service providers. |

----

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | The Company has complete discretion in supplier selection.   One of the key factors considered by client payors who engage the Company is to have the Company undertake the responsibility for identifying, qualifying, contracting with and managing the relationships with the ancillary healthcare service providers.  As part of the contractual arrangement between the Company and its client payors, the payors identify their obligations to their respective covered lives and then work with the Company to determine the types of ancillary healthcare services required in order for the payors to meet their obligations.  The Company may select the providers and contract with them to provide services at its discretion. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | The Company is involved in the determination of product or service specifications.  The Company works with its client payors to determine the types of ancillary healthcare services required in order for the payors to meet their obligations to their respective covered lives.  In some respects, the Company is customizing the product through its efforts and ability to assemble a comprehensive network of providers for its customers that is tailored to each client payor’s specific needs.  In addition, as part of its claims processing and payment services, the Company works with the client payors, on the one hand, and the providers, on the other, to set claims review, management and payment specifications. |

|                                |                                                                                                                                                                                                                                                                                                                                        |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | The supplier (and not the Company) has credit risk.  The Company believes it has some level of credit risk, but that risk is mitigated because the Company does not remit payment to providers unless and until it has received payment from the relevant client payors following the Company’s processing of a claim. |

|                                |                                                                                                                                                                                         |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | The amount that the Company earns is not fixed.  The Company does not earn a fixed amount per transaction nor does it realize a per-person per-month charge for its services. |

|                            |                               |        |                                  |        |                     |        |                                  |         |              |                     |             |        |                     |        |         |        |                     |        |        |         |        |                     |        |        |        |        |        |    |        |   |        |        |        |     |   |
|----------------------------|-------------------------------|--------|----------------------------------|--------|---------------------|--------|----------------------------------|---------|--------------|---------------------|-------------|--------|---------------------|--------|---------|--------|---------------------|--------|--------|---------|--------|---------------------|--------|--------|--------|--------|--------|----|--------|---|--------|--------|--------|-----|---|
|                       |                          |   | Periods ended September 30, 2010 |   |                |   | Periods ended September 30, 2009 |
|                       | As of September 30, 2010 |   | Three months                     |   | Nine months         |   | As of September 30, 2009    |    | Three months |                | Nine months |
|                       | Accounts Recievable           |   | Revenue                          |   | % of Total Revenues |   |                             | Revenue |         | % of Total Revenues |        |   | Accounts Recievable |   | Revenue |   | % of Total Revenues |   |   | Revenue |   | % of Total Revenues |   |
|                       |
| Client A    | $                             | 2,747  |                             |   | $                   | 6,708  |                             |    | 45           | %                   |        | $      | 22,265              |   |    | 49     | %                   |   | $      | 3,257   |   |                | $      | 8,910  |   |   | 49     | %  |   | $ | 25,827 |   |   | 50  | % |
| Client B                   | 1,789                         |   |                             | 3,889  |                |   | 26                               | %       |         | 13,189              |        |   | 29                  | %      |    | 2,870  |                |   | 6,417  |    |   | 35                  | %      |   | 19,714 |   |   | 38 | %      |
| Others                     | 1,855                         |   |                             | 4,226  |                |   | 29                               | %       |         | 9,818               |        |   | 22                  | %      |    | 1,145  |                |   | 2,908  |    |   | 16                  | %      |   | 5,884  |   |   | 12 | %      |
|                       | $                             | 6,391  |                             |   | $                   | 14,823 |                             |    | 100          | %                   |        | $      | 45,272              |   |    | 100    | %                   |   | $      | 7,272   |   |                | $      | 18,235 |   |   | 100    | %  |   | $ | 51,425 |   |   | 100 | % |

----

|                             |                    |
|-----------------------------|--------------------|
| (3)     | Earnings Per Share |

|                                                                                 |                                       |        |                                      |         |        |        |         |        |        |        |        |        |   |      |        |
|---------------------------------------------------------------------------------|---------------------------------------|--------|--------------------------------------|---------|--------|--------|---------|--------|--------|--------|--------|--------|---|------|--------|
|                                                                            | Three months ended September 30, |   | Nine months ended September 30, |
|                                                                            | 2010                                  |   | 2009                                 |    | 2010   |   | 2009    |
| Numerator for basic and diluted earnings per share:                             |                                  |   |                                 |    |   |   |    |
| Net income for basic earnings per share                                         | $                                     | 44     |                                 |    | $      | 147    |    |   | $      | 344    |   |   | $ | 960  |   |
| Less:                                                                           |                                  |   |                                 |    |   |   |    |
| Unrealized gain on warrant derivative liability                                 | 2                                     |   |                                 | — |   |   | 18      |   |   | 232    |   |
| Net income for diluted earnings per share                                       | 42                                    |   |                                 | 147     |   |   | 326     |   |   | 728    |   |
| Denominator:                                                                    |                                  |   |                                 |    |   |   |    |   |   |   |   |
|                                                                            |                                  |   |                                 |    |   |   |    |   |   |   |   |
| Weighted-average basic common shares outstanding                                | 16,631                                |   |                                 | 15,432  |   |   | 16,413  |   |   | 15,425 |   |
| Assumed conversion of dilutive securities:                                      |                                  |   |                                 |    |   |   |    |
| Stock options                                                                   | 239                                   |   |                                 | 545     |   |   | 282     |   |   | 829    |   |
| Stock warrants                                                                  | 254                                   |   |                                 | 1,595   |   |   | 474     |   |   | 1,716  |   |
| Restricted Stock Units                                                          | —                               |   |                                 | — |   |   | — |   |   | 2      |   |
| Potentially dilutive common shares                                              | 493                                   |   |                                 | 2,140   |   |   | 756     |   |   | 2,547  |   |
|                                                                            |                                  |   |                                 |    |   |   |    |   |   |   |   |
| Denominator for diluted earnings per share - Adjusted weighted - average shares | 17,124                                |   |                                 | 17,572  |   |   | 17,169  |   |   | 17,972 |   |
| Earnings per common share:                                                      |                                  |   |                                 |    |   |   |    |   |   |   |   |
| Basic                                                                           | $                                     | 0.00   |                                 |    | $      | 0.01   |    |   | $      | 0.02   |   |   | $ | 0.06 |   |
| Diluted                                                                         | $                                     | 0.00   |                                 |    | $      | 0.01   |    |   | $      | 0.02   |   |   | $ | 0.04 |   |

|                             |                        |
|-----------------------------|------------------------|
| (4)     | Significant Agreements |

----

|                             |                      |
|-----------------------------|----------------------|
| (5)     |  Stock Warrants |

|                             |                    |
|-----------------------------|--------------------|
| (6)     | Warrant Derivative |

|                         |       |         |                                                                |         |                                               |         |                                          |        |        |         |        |        |   |         |        |
|-------------------------|-------|---------|----------------------------------------------------------------|---------|-----------------------------------------------|---------|------------------------------------------|--------|--------|---------|--------|--------|---|---------|--------|
|                    | Total |    | Quoted prices in active markets for identical assets (Level 1) |    | Significant other observable inputs (Level 2) |    | Significant unobservable inputs(Level 3) |
| September 30, 2010 | $     | — |                                                           |    | $                                             | — |                                     |   | $      | — |   |   | $ | — |   |
| December 31, 2009  | 18    |    |                                                           | — |                                          |    | —                                  |   |   | 18      |   |

----

|                         |                         |        |                        |         |        |      |        |
|-------------------------|-------------------------|--------|------------------------|---------|--------|------|--------|
|                    | September 30, 2010 |   | December 31, 2009 |
| Exercise price          | $                       | 5.50   |                   |    | $      | 5.50 |   |
| Expected volatility     | 56.8                    | %      |                   | 68.9    | %      |
| Expected life (years)   | 0.45                    |   |                   | 1.2     |   |
| Risk free interest rate | 0.18                    | %      |                   | 0.6     | %      |
| Forfeiture rate         | —                 |   |                   | — |   |
| Dividend rate           | —                 |   |                   | — |   |

|                                                      |         |         |        |        |   |     |        |
|------------------------------------------------------|---------|---------|--------|--------|---|-----|--------|
| ($ in thousands)                                     | 2010    |    | 2009   |
| Balance as of January 1                              | $       | 18      |   |   | $ | 374 |   |
| Sales of warrant derivative                          | — |    |   | (32    | ) |
| Unrealized gains related to the change in fair value | (18     | )       |   | (232   | ) |
| Balance as of September 30                           | $       | — |   |   | $ | 110 |   |

|                             |                            |
|-----------------------------|----------------------------|
| (7)     | Software Development Costs |

----

|                             |              |
|-----------------------------|--------------|
| (8)     | Income Taxes |

|                             |                                  |
|-----------------------------|----------------------------------|
| (9)     | Recent Accounting Pronouncements |

|                              |                         |
|------------------------------|-------------------------|
| (10)     | Subsequent Events  |

----

|                                |                                                                                                                                                                                                                           |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | lowering our payors’ ancillary care costs throughout our network of high quality, cost effective providers that we have under contract at more favorable terms than our payors could generally obtain on their own; |

|                                |                                                                                                                                                                                                                           |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | providing payors with a comprehensive network of ancillary healthcare services providers that is tailored to each payor’s specific needs and is available to each payor’s covered lives for covered services; |

|                                |                                                                                          |
|--------------------------------|------------------------------------------------------------------------------------------|
| •     | providing payors with claims management, reporting, and processing and payment services; |

|                                |                                                                                                                                                                   |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | performing network/needs analysis to assess the benefits to payors of adding additional/different service providers to the payor -specific provider networks; and |

|                                |                                                                                                 |
|--------------------------------|-------------------------------------------------------------------------------------------------|
| •     | credentialing network service providers for inclusion in the payor -specific provider networks. |

----

----

|                  |               |        |             |        |        |        |        |        |        |        |        |        |     |        |        |   |        |        |        |   |        |        |        |   |        |   |        |     |    |
|------------------|---------------|--------|-------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----|--------|--------|---|--------|--------|--------|---|--------|--------|--------|---|--------|---|--------|-----|----|
|             | Third Quarter |   | Nine Months |
|             |          |   |        |   | Change |   |   |   |   |   | Change |
| ($ in thousands) | 2010          |   | 2009        |   | $      |   | %      |   | 2010   |   | 2009   |   | $   |   | %      |
| Net revenues     | $             | 14,823 |        |   | $      | 18,235 |   |   | $      | (3,412 | )      |   | (19 | )%     |   | $ | 45,272 |   |   | $ | 51,425 |   |   | $ | (6,153 | ) |   | (12 | )% |

|                                |                                                                                                                      |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------|
| •     | Loss of covered lives and payor groups due to the declining US economy, reduction in jobs and macroeconomic factors; |

|                                |                                                     |
|--------------------------------|-----------------------------------------------------|
| •     | Stronger presence of larger carriers in the market; |

|                                |                                                                                                     |
|--------------------------------|-----------------------------------------------------------------------------------------------------|
| •     | Loss of key relationship with a national laboratory services provider in the third quarter of 2009; |

|                                |                                                                                                          |
|--------------------------------|----------------------------------------------------------------------------------------------------------|
| •     | Loss of key relationship with a national laboratory services provider in the second quarter of 2010; and |

|                                |                                                                                 |
|--------------------------------|---------------------------------------------------------------------------------|
| •     | Transition status of one of our key accounts related to a business combination. |

|                             |               |        |                      |         |               |        |        |        |        |        |        |        |        |        |        |         |        |        |     |        |        |     |        |        |     |    |
|-----------------------------|---------------|--------|----------------------|---------|---------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|-----|--------|--------|-----|--------|--------|-----|----|
|                        | Revenue       |   | Billed Claims Volume |
|                        | Third Quarter |   | Change               |    | Third Quarter |   | Change |
| (in thousands)              | 2010          |   | 2009                 |    | $             |   | %      |   | 2010   |   | 2009   |   | Claims |   | %      |
| Client A                    | $             | 6,708  |                 |    | $             | 8,910  |   |   | $      | (2,202 | )      |   | (25    | )%     |   | 29      |   |   | 43  |   |   | (14 | )      |   | (33 | )% |
| Client B                    | 3,889         |   |                 | 6,417   |          |   | (2,528 | )      |   | (39    | )%     |   | 19     |   |   | 33      |   |   | (14 | )      |   | (42 | )%     |
| Other clients               | 2,475         |   |                 | 2,908   |          |   | (433   | )      |   | (15    | )%     |   | 20     |   |   | 25      |   |   | (5  | )      |   | (20 | )%     |
| Clients implemented in 2010 | 1,751         |   |                 | — |          |   | 1,751  |   |   | nm     |   |   | 8      |   |   | — |   |   | 8   |   |   | nm  |   |
| Total                       | $             | 14,823 |                 |    | $             | 18,235 |   |   | $      | (3,412 | )      |   | (19    | )%     |   | 76      |   |   | 101 |   |   | (25 | )      |   | (25 | )% |

----

|                             |             |        |                      |         |             |        |        |        |        |        |         |        |        |        |        |         |        |        |     |        |        |     |         |        |     |    |
|-----------------------------|-------------|--------|----------------------|---------|-------------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|---------|--------|--------|-----|--------|--------|-----|---------|--------|-----|----|
|                        | Revenue     |   | Billed Claims Volume |
|                        | Nine Months |   | Change               |    | Nine Months |   | Change |
| (in thousands)              | 2010        |   | 2009                 |    | $           |   | %      |   | 2010   |   | 2009    |   | Claims |   | %      |
| Client A                    | $           | 22,265 |                 |    | $           | 25,826 |   |   | $      | (3,561 | )       |   | (14    | )%     |   | 95      |   |   | 119 |   |   | (24 | )       |   | (20 | )% |
| Client B                    | 13,189      |   |                 | 19,714  |        |   | (6,525 | )      |   | (33    | )%      |   | 75     |   |   | 109     |   |   | (34 | )      |   | (31 | )%      |
| Other clients               | 6,673       |   |                 | 5,885   |        |   | 788    |   |   | 13     |  % |   | 63     |   |   | 54      |   |   | 9   |   |   | 17  |  % |
| Clients implemented in 2010 | 3,145       |   |                 | — |        |   | 3,145  |   |   | nm     |    |   | 14     |   |   | — |   |   | 14  |   |   | nm  |    |
| Total                       | $           | 45,272 |                 |    | $           | 51,425 |   |   | $      | (6,153 | )       |   | (12    | )%     |   | 247     |   |   | 282 |   |   | (35 | )       |   | (12 | )% |

|                                 |                    |        |                   |        |        |        |        |        |        |     |        |
|---------------------------------|--------------------|--------|-------------------|--------|--------|--------|--------|--------|--------|-----|--------|
|                            | Three months ended |   | Nine months ended |
|                            | 2010               |   | 2009              |   | 2010   |   | 2009   |
| Claims processed (in thousands) | 111                |   |              | 117    |   |   | 315    |   |   | 329 |   |
|                            |               |   |              |   |   |   |   |
| Claims billed (in thousands)    | 76                 |   |              | 101    |   |   | 247    |   |   | 282 |   |
|                            |               |   |              |   |   |   |   |
| Revenue per billed claim        | 195                |   |              | 181    |   |   | 183    |   |   | 182 |   |

----

|                                                |               |        |               |        |        |        |               |        |        |        |        |        |      |        |        |        |         |        |     |    |
|------------------------------------------------|---------------|--------|---------------|--------|--------|--------|---------------|--------|--------|--------|--------|--------|------|--------|--------|--------|---------|--------|-----|----|
|                                           | Third Quarter |
|                                           |          |   |          |   |   |   |          |   | Change |
| ($ in thousands)                               | 2010          |   | % of revenues |   | 2009   |   | % of revenues |   | $      |   | %      |
| Provider payments                              | $             | 11,129 |          |   | 75.1   | %      |          | $      | 13,800 |   |   | 75.7   | %    |   | $      | (2,671 | )       |   | (19 | )% |
| Administrative fees                            | 799           |   |          | 5.4    | %      |   | 963           |   |   | 5.3    | %      |   | (164 | )      |   | (17    | )%      |
| Claims administration and provider development | 1,189         |   |          | 8.0    | %      |   | 1,178         |   |   | 6.5    | %      |   | 11   |   |   | 1      |  % |
| Total cost of revenues                         | $             | 13,117 |          |   | 88.5   | %      |          | $      | 15,941 |   |   | 87.5   | %    |   | $      | (2,824 | )       |   | (18 | )% |

|                                                |             |        |               |        |        |        |               |        |        |        |        |        |      |        |        |        |         |        |     |    |
|------------------------------------------------|-------------|--------|---------------|--------|--------|--------|---------------|--------|--------|--------|--------|--------|------|--------|--------|--------|---------|--------|-----|----|
|                                           | Nine Months |
|                                           |        |   |          |   |   |   |          |   | Change |
| ($ in thousands)                               | 2010        |   | % of revenues |   | 2009   |   | % of revenues |   | $      |   | %      |
| Provider payments                              | $           | 33,351 |          |   | 73.7   | %      |          | $      | 38,670 |   |   | 75.2   | %    |   | $      | (5,319 | )       |   | (14 | )% |
| Administrative fees                            | 2,552       |   |          | 5.6    | %      |   | 2,682         |   |   | 5.2    | %      |   | (130 | )      |   | (5     | )%      |
| Claims administration and provider development | 3,597       |   |          | 7.9    | %      |   | 3,259         |   |   | 6.3    | %      |   | 338  |   |   | 10     |  % |
| Total cost of revenues                         | $           | 39,500 |          |   | 87.2   | %      |          | $      | 44,611 |   |   | 86.7   | %    |   | $      | (5,111 | )       |   | (11 | )% |

----

|                                      |                       |        |                      |        |            |        |        |        |        |        |            |        |        |        |        |        |            |        |        |   |        |        |        |        |      |        |        |     |        |        |    |       |        |        |    |       |        |        |   |    |        |        |   |         |
|--------------------------------------|-----------------------|--------|----------------------|--------|------------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|--------|------------|--------|--------|---|--------|--------|--------|--------|------|--------|--------|-----|--------|--------|----|-------|--------|--------|----|-------|--------|--------|---|----|--------|--------|---|---------|
|                                 | Third Quarter         |
|                                 | Claims Administration |   | Provider Development |   | Total      |
|                                 |                  |   |                 |   | Increase   |   |   |   |   |   | Increase   |   |   |   |   |   | Increase   |
| ($ in thousands)                     | 2010                  |   | 2009                 |   | (Decrease) |   | 2010   |   | 2009   |   | (Decrease) |   | 2010   |   | 2009   |   | (Decrease) |
| Total wages, incentives and benefits | $                     | 719    |                 |   | $          | 602    |   |   | $      | 117    |       |   | 19     | %      |   | $      | 307        |   |   | $ | 409    |   |   | $      | (102 | )      |   | (25 | )%     |   | $  | 1,026 |   |   | $  | 1,011 |   |   | $ | 15 |   |   | 1 |  % |
| Other                                | 31                    |   |                 | 18     |       |   | 13     |   |   | nm     |       |   | 132    |   |   | 149    |       |   | (17    | ) |   | (11    | )%     |   | 163  |   |   | 167 |   |   | (4 | )     |   | (2     | )% |
|                                 | $                     | 750    |                 |   | $          | 620    |   |   | $      | 130    |       |   | 21     | %      |   | $      | 439        |   |   | $ | 558    |   |   | $      | (119 | )      |   | (21 | )%     |   | $  | 1,189 |   |   | $  | 1,178 |   |   | $ | 11 |   |   | 1 |  % |

|                                      |                       |        |                      |        |            |        |        |        |        |        |            |        |        |        |        |        |            |        |        |   |        |        |        |        |     |        |        |     |        |        |    |        |        |        |   |       |        |        |   |     |        |        |    |   |
|--------------------------------------|-----------------------|--------|----------------------|--------|------------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|--------|------------|--------|--------|---|--------|--------|--------|--------|-----|--------|--------|-----|--------|--------|----|--------|--------|--------|---|-------|--------|--------|---|-----|--------|--------|----|---|
|                                 | Nine Months           |
|                                 | Claims Administration |   | Provider Development |   | Total      |
|                                 |                  |   |                 |   | Increase   |   |   |   |   |   | Increase   |   |   |   |   |   | Increase   |
| ($ in thousands)                     | 2010                  |   | 2009                 |   | (Decrease) |   | 2010   |   | 2009   |   | (Decrease) |   | 2010   |   | 2009   |   | (Decrease) |
| Total wages, incentives and benefits | $                     | 2,071  |                 |   | $          | 1,744  |   |   | $      | 327    |       |   | 19     | %      |   | $      | 1,085      |   |   | $ | 1,089  |   |   | $      | (4  | )      |   | (0  | )%     |   | $  | 3,156  |   |   | $ | 2,833 |   |   | $ | 323 |   |   | 11 | % |
| Other                                | 75                    |   |                 | (2     | )          |   | 77     |   |   | nm     |       |   | 366    |   |   | 428    |       |   | (62    | ) |   | (14    | )%     |   | 441 |   |   | 426 |   |   | 15 |   |   | 4      | % |
|                                 | $                     | 2,146  |                 |   | $          | 1,742  |   |   | $      | 404    |       |   | 23     | %      |   | $      | 1,451      |   |   | $ | 1,517  |   |   | $      | (66 | )      |   | (4  | )%     |   | $  | 3,597  |   |   | $ | 3,259 |   |   | $ | 338 |   |   | 10 | % |

|                                        |               |        |             |        |        |        |        |        |        |        |         |        |        |         |        |      |        |        |        |        |        |        |         |   |     |        |        |    |         |
|----------------------------------------|---------------|--------|-------------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|---------|--------|------|--------|--------|--------|--------|--------|--------|---------|---|-----|--------|--------|----|---------|
|                                   | Third Quarter |   | Nine Months |
|                                   |          |   |        |   | Change |   |   |   |   |   | Change  |
| ($ in thousands except per claim data) | 2010          |   | 2009        |   | $      |   | %      | 2010   |   | 2009   |    | $      |   | %       |
| Cost of claims administration          | $             | 750    |        |   | $      | 620    |   |   | $      | 130    |    |   | 21     |  % |   | $    | 2,146  |   |   | $      | 1,742  |   |    | $ | 404 |   |   | 23 |  % |
| Processed claims                       | 111           |   |        | 117    |   |   | (6     | )      |   | (5     | )%      |   | 315    |    |   | 329  |   |   | (14    | )      |   | (4     | )%      |
| Cost per claim                         | 6.76          |   |        | 5.30   |   |   | 1.46   |   |   | 28     |  % |   | 6.81   |    |   | 5.29 |   |   | 1.52   |   |   | 29     |  % |

----

|                                |               |        |             |        |              |        |      |        |        |        |              |        |      |   |        |      |    |
|--------------------------------|---------------|--------|-------------|--------|--------------|--------|------|--------|--------|--------|--------------|--------|------|---|--------|------|----|
|                           | Third Quarter |   | Nine months |
|                           | 2010          |   | 2009        |   | Change % pts |   | 2010 |   | 2009   |   | Change % pts |
| Contribution margin percentage | 11.5          | %      |        | 12.6   | %            |   | (1.1 | )%     |   | 12.7   | %            |   | 13.3 | % |   | (0.6 | )% |

|                                              |               |        |             |        |        |        |        |        |        |        |        |        |        |    |        |      |       |        |        |        |        |        |        |   |        |   |        |     |    |
|----------------------------------------------|---------------|--------|-------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|----|--------|------|-------|--------|--------|--------|--------|--------|--------|---|--------|---|--------|-----|----|
|                                         | Third Quarter |   | Nine Months |
|                                         |          |   |        |   | Change |   |   |   |   |   | Change |
| ($ in thousands)                             | 2010          |   | 2009        |   | $      |   | %      | 2010   |   | 2009   |   | $      |   | %  |
| Selling, general and administrative expenses | $             | 1,446  |        |   | $      | 1,980  |   |   | $      | (534   | )      |   | (27    | )% |   | $    | 4,722 |   |   | $      | 5,735  |   |   | $ | (1,013 | ) |   | (18 | )% |
| Percentage of total net revenues        | 9.8           | %      |        | 10.9   | %      |   |   |   |   |   |   |   | 10.4   | %  |   | 11.2 | %     |   |   |   |   |   |   |

|                                                                 |                              |        |                       |        |                     |        |        |        |        |        |                     |        |         |        |        |         |                     |        |         |        |        |        |         |        |         |        |        |     |        |        |      |        |        |        |         |       |        |        |   |      |   |        |     |    |
|-----------------------------------------------------------------|------------------------------|--------|-----------------------|--------|---------------------|--------|--------|--------|--------|--------|---------------------|--------|---------|--------|--------|---------|---------------------|--------|---------|--------|--------|--------|---------|--------|---------|--------|--------|-----|--------|--------|------|--------|--------|--------|---------|-------|--------|--------|---|------|---|--------|-----|----|
|                                                            | Third Quarter                |
| ($ in thousands)                                                | Finance & Administration |   | Sales & Marketing |   | Total               |
| Selling, general and administrative expenses               | 2010                         |   | 2009                  |   | Increase (Decrease) |   | 2010   |   | 2009   |   | Increase (Decrease) |   | 2010    |   | 2009   |    | Increase (Decrease) |
| Total wages, commissions, incentives and benefits               | $                            | 319    |                  |   | $                   | 444    |   |   | $      | (125   | )                   |   | (28     | )%     |   | $       | 186                 |   |    | $      | 362    |   |    | $      | (176    | )      |   | (49 | )%     |   | $    | 505    |   |   | $       | 806   |   |   | $ | (301 | ) |   | (37 | )% |
| Professional fees (legal, accounting, marketing and consulting) | 167                          |   |                  | 201    |                |   | (34    | )      |   | (17    | )%                  |   | 59      |   |   | 35      |                |   | 24      |   |   | 69     |  % |   | 226     |   |   | 236 |   |   | (10  | )      |   | (4     | )%      |
| Stock-based compensation expense                                | 197                          |   |                  | 284    |                |   | (87    | )      |   | (31    | )%                  |   | — |   |   | — |                |   | — |   |   | nm     |    |   | 197     |   |   | 284 |   |   | (87  | )      |   | (31    | )%      |
| Other                                                           | 423                          |   |                  | 354    |                |   | 69     |   |   | 19     |  %             |   | 95      |   |   | 77      |                |   | 18      |   |   | 23     |  % |   | 518     |   |   | 431 |   |   | 87   |   |   | 20     |  % |
| Severance                                                       | —                      |   |                  | 223    |                |   | (223   | )      |   | (100   | )%                  |   | — |   |   | — |                |   | — |   |   | nm     |    |   | — |   |   | 223 |   |   | (223 | )      |   | (100   | )%      |
| Total selling, general and administrative expenses              | $                            | 1,106  |                  |   | $                   | 1,506  |   |   | $      | (400   | )                   |   | (27     | )%     |   | $       | 340                 |   |    | $      | 474    |   |    | $      | (134    | )      |   | (28 | )%     |   | $    | 1,446  |   |   | $       | 1,980 |   |   | $ | (534 | ) |   | (27 | )% |

----

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Salaries, wages and benefits decreased approximately $301,000 due primarily to the departures of our former Senior Vice President of Sales and Marketing and former Chief Financial Officer during the first quarter of 2010.  Also, effective July 31, 2009, we made organizational changes, which included the reorganization of our sales and marketing and client development groups.  As a result, we eliminated the Vice President of Client Development position resulting in severance of approximately $223,000.  In addition, charges related to our executive incentive plan, which is based on our operating results, declined by 84% when comparing the three months ended September 30, 2010 to the same prior year period; and |

|                                |                                                                                                                                                                                                                                                                                                                          |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | A reduction in our stock-based compensation expense of approximately $87,000 related mainly to the forfeiture of non-vested equity incentive awards that were awarded to our former Chairman of the Board of Directors, our former Chief Financial Officer, and our former Senior Vice President of Sales and Marketing. |

|                                |                                                                                                    |
|--------------------------------|----------------------------------------------------------------------------------------------------|
| •     | Other SG&A expense includes resource based allocations of shared services and common expenses. |

|                                                                 |                              |        |                       |        |                     |        |        |        |        |        |                     |        |         |        |        |         |                     |        |         |        |        |        |         |        |       |        |        |       |        |        |      |        |        |        |         |       |        |        |   |        |   |        |     |    |
|-----------------------------------------------------------------|------------------------------|--------|-----------------------|--------|---------------------|--------|--------|--------|--------|--------|---------------------|--------|---------|--------|--------|---------|---------------------|--------|---------|--------|--------|--------|---------|--------|-------|--------|--------|-------|--------|--------|------|--------|--------|--------|---------|-------|--------|--------|---|--------|---|--------|-----|----|
|                                                            | Nine Months                  |
| ($ in thousands)                                                | Finance & Administration |   | Sales & Marketing |   | Total               |
| Selling, general and administrative expenses               | 2010                         |   | 2009                  |   | Increase (Decrease) |   | 2010   |   | 2009   |   | Increase (Decrease) |   | 2010    |   | 2009   |    | Increase (Decrease) |
| Total wages, commissions, incentives and benefits               | $                            | 1,027  |                  |   | $                   | 1,258  |   |   | $      | (231   | )                   |   | (18     | )%     |   | $       | 733                 |   |    | $      | 1,301  |   |    | $      | (568  | )      |   | (44   | )%     |   | $    | 1,760  |   |   | $       | 2,559 |   |   | $ | (799   | ) |   | (31 | )% |
| Professional fees (legal, accounting, marketing and consulting) | 644                          |   |                  | 642    |                |   | 2      |   |   | 0      |  %             |   | 180     |   |   | 164     |                |   | 16      |   |   | 10     |  % |   | 824   |   |   | 806   |   |   | 18   |   |   | 2      |  % |
| Stock-based compensation expense                                | 476                          |   |                  | 813    |                |   | (337   | )      |   | (41    | )%                  |   | — |   |   | — |                |   | — |   |   | nm     |    |   | 476   |   |   | 813   |   |   | (337 | )      |   | (41    | )%      |
| Other                                                           | 1,208                        |   |                  | 1,044  |                |   | 164    |   |   | 16     |  %             |   | 311     |   |   | 290     |                |   | 21      |   |   | 7      |  % |   | 1,519 |   |   | 1,334 |   |   | 185  |   |   | 14     |  % |
| Severance costs                                                 | 143                          |   |                  | 223    |                |   | (80    | )      |   | (36    | )%                  |   | — |   |   | — |                |   | — |   |   | nm     |    |   | 143   |   |   | 223   |   |   | (80  | )      |   | (36    | )%      |
| Total selling, general and administrative expenses              | $                            | 3,498  |                  |   | $                   | 3,980  |   |   | $      | (482   | )                   |   | (12     | )%     |   | $       | 1,224               |   |    | $      | 1,755  |   |    | $      | (531  | )      |   | (30   | )%     |   | $    | 4,722  |   |   | $       | 5,735 |   |   | $ | (1,013 | ) |   | (18 | )% |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Salaries, wages and benefits decreased approximately $799,000 due primarily to the departures of our former Senior Vice President of Sales and Marketing and former Chief Financial Officer during the first quarter of 2010.  Also, effective July 31, 2009, we made organizational changes, which included the reorganization of our sales and marketing and client development groups.  In addition, charges related to our executive incentive plan, which is based on our operating results, declined by 85% when comparing the the same prior year period; and |

|                                |                                                                                                                                                                                                                                                                                                                           |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | A reduction in our stock-based compensation expense of approximately $337,000 related mainly to the forfeiture of non-vested equity incentive awards that were awarded to our former Chairman of the Board of Directors, our former Chief Financial Officer, and our former Senior Vice President of Sales and Marketing. |

|                                |                                                                                                    |
|--------------------------------|----------------------------------------------------------------------------------------------------|
| •     | Other SG&A expense includes resource based allocations of shared services and common expenses. |

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|                                     |               |        |        |        |             |        |         |        |        |        |        |        |    |        |        |    |        |        |         |        |        |        |        |   |     |        |        |    |   |
|-------------------------------------|---------------|--------|--------|--------|-------------|--------|---------|--------|--------|--------|--------|--------|----|--------|--------|----|--------|--------|---------|--------|--------|--------|--------|---|-----|--------|--------|----|---|
|                                | Third Quarter |   | Change |   | Nine Months |   | Change  |
| ($ in thousands)                    | 2010          |   | 2009   |   | $           |   | %       |   | 2010   |   | 2009   |   | $  |   | %      |
| Depreciation                        | $             | 165    |   |   | $           | 123    |    |   | $      | 60     |   |   | 49 | %      |   | $  | 475    |   |    | $      | 305    |   |   | $ | 129 |   |   | 42 | % |
| Amortization                        | 32            |   |   | 32     |        |   | — |   |   | nm     |   |   | 96 |   |   | 96 |   |   | — |   |   | nm     |   |
| Total Depreciation and amortization | $             | 197    |   |   | $           | 155    |    |   | $      | 60     |   |   | 39 | %      |   | $  | 571    |   |    | $      | 401    |   |   | $ | 129 |   |   | 32 | % |

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|                      |                                                                                                                                                                                                                                                                                              |
|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit 10.19 * | Provider Services Agreement, dated as of August 1, 2002, by and among the Company, HealthSmart Holdings, Inc. and HealthSmart Preferred Care II, L.P, and Amendment No. 1, 2, 3 and 4 thereto, dated September 1, 2005, January 1, 2007, July 31, 2007, and December 20, 2008, respectively. |
| Exhibit 10.21 * | Ancillary Care Services Network Access Agreement, dated as of July 2, 2007, by and between the Company and Texas True Choice, Inc. and its subsidiaries, and Amendment thereto, dated December 31, 2009.                                                                                     |
| Exhibit 31.1         | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                      |
| Exhibit 31.2         | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                      |
| Exhibit 32.1         | Certifications Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                      |

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|        |        |                                          |                                                       |
|--------|--------|------------------------------------------|-------------------------------------------------------|
|   |   | AMERICAN CARESOURCE HOLDINGS, INC.  |
|   |   |                                     |                                                  |
|   |   | By:                                      | /s/ David S. Boone                                    |
|   |   |                                     | David S. Boone                                        |
|   |   |                                     | Chief Executive Officer (Principal Executive Officer) |

|        |                        |        |                                                                                        |
|--------|------------------------|--------|----------------------------------------------------------------------------------------|
|   |                   | By:    | /s/ Matthew D. Thompson                                                                |
|   |                   |   | Matthew D. Thompson                                                                    |
|   |                   |   | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |
| Date:  | November 12, 2010 |   |                                                                                   |