U.S. SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                  FORM 10-QSB

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

                    For quarterly period ended June 30, 1997

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

          For the transition period from ____________ to _____________

                           Commission File No. 0-9836


      EXTENDED FAMILY CARE CORPORATION (Formerly Cosmetic Sciences, Inc.)
        (Exact name of small business issuer as specified in its charter)

               New York                           22-2210547
        (State of Incorporation)     (I.R.S. Employer Identification No.)

          One Old Country Road, Suite 335, Carle Place, New York 11514
          (Address of Principal Executive Office)            (Zip Code)

                                 (516) 248-2273
                (Issuer's telephone number, including area code)

   Check whether the issuer (1) has filed all reports required to be filed by
 Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
 shorter period that the Registrant was required to file such reports), and (2)
       has been subject to such filing requirements for the past 90 days.
                             Yes X       No ______


                   (ISSUERS INVOLVED IN BANKRUPTCY PROCEEDING
                          DURING THE PAST FIVE YEARS)
  Check whether the issuer has filed all documents and reports required to be
 filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
                 securities under a plan confirmed by a court.
                                 Yes _____ No  X   
                                  
                                 

Indicate the number of shares outstanding of each of the Registrant's classes of
common stock, as of the latest practicable date: 37,602,201 common shares, $.01
                        par value, as of August 12, 1997.

   Transitional Small Business Disclosure Format (check one): Yes _____ No X

<PAGE>

                EXTENDED FAMILY CARE CORPORATION AND SUBSIDIARY
                      SECOND QUARTER REPORT ON FORM 10-QSB
              INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                                                           Page
Part I - Financial Information

Item 1

Condensed Consolidated Balance Sheets as of June 30, 1997
     (Unaudited) and December 31, 1996........................................3

Condensed Consolidated Statements of Operations (Unaudited)
     for the three months and six months ended June 30, 1997 and 1996.........4

Condensed Consolidated Statements of Cash Flows (Unaudited)
for the six months ended June 30, 1997 and 1996...............................5

Notes to Condensed Consolidated Financial Statements (Unaudited)..............6


Item 2

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


Part II - Other Information

Item 5

Other Information............................................................12

Item 6

Exhibits and Reports on Form 8-K.............................................12

Signatures...................................................................13

Exhibit Index................................................................14


<PAGE>

                 Extended Family Care Corporation and Subsidiary
                      Condensed Consolidated Balance Sheets

<TABLE>
<CAPTION>
                                                                                   June 30,               December 31,
                                                                                    1997                     1996
                                                                                (Unaudited)
        ASSETS
<S>                                                                             <C>                       <C>
Current assets:
    Cash                                                                        $  300,825                $1,066,193
    Accounts receivable, net of allowance for
        doubtful accounts of $200,000 at June 30, 1997
        and $100,000 at December 31, 1996                                        1,274,815                 1,066,277
    Prepaid expenses and other current assets                                      162,650                   496,185
                                                                                ----------                ----------
            Total current assets                                                 1,738,290                 2,628,655

Property and equipment, net                                                        190,656                   233,644

Other assets:
    Deferred taxes                                                                 243,000                   204,000
    License, net                                                                   456,311                   476,153
    Other                                                                           29,410                    29,410
                                                                                ----------                ----------
Total assets                                                                    $2,657,667                $3,571,862
                                                                                ==========                ==========


        LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
    Accounts payable and other accrued expenses                                 $1,086,548                $  809,758
    Payroll taxes payable                                                          151,485                   151,721
    Notes payable                                                                    4,449                    43,449
    Other current liabilities                                                       95,570                    96,224
                                                                                ----------                ----------
            Total current liabilities                                            1,338,052                 1,101,152
                                                                                ----------                ----------

Non-current liabilities:
    Long-term debt                                                                  33,500                    36,500
    Obligations under capital leases                                                58,294                    69,717
                                                                                ----------                ----------
        Total non-current liabilities                                               91,794                   106,217
                                                                                ----------                ----------
             Total liabilities                                                   1,429,846                 1,207,369
                                                                                ----------                ----------

COMMITMENTS AND CONTINGENCIES

Minority interest in subsidiary                                                    126,528                   139,649
                                                                                ----------                ----------

Shareholders' equity
    Preferred stock, $.01 par value, 10,000,000 shares
        authorized in 1996                                                            -                         -
    Common stock, $.01 par value per share,
        50,000,000 shares authorized, 30,000,000 in 1996;
        32,000,226 shares issued and outstanding                                   320,002                   320,002
    Additional paid-in capital                                                   1,013,358                 1,763,348
Retained earnings                                                                 (232,067)                  141,494
                                                                                ----------                ----------
        Total shareholders' equity                                               1,101,293                 2,224,844
                                                                                ----------                ----------

             Total liabilities and shareholders' equity                         $2,657,667                $3,571,862
                                                                                ==========                ==========

</TABLE>


     See accompanying notes to condensed consolidated financial statements.

<PAGE>

                 Extended Family Care Corporation and Subsidiary
                 Condensed Consolidated Statements of Operations
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                 Three Months Ended                            Six Months Ended
                                                       June 30,                                   June 30,
                                                1997             1996                      1997            1996
                                                ----             ----                      ----            ----
<S>                                           <C>              <C>                       <C>             <C>
Net patient service revenue                   $2,339,283       $2,218,113                $4,661,222      $4,203,005
                                              ----------       ----------                ----------      ----------

Cost of services                               1,443,161        1,398,508                 2,968,219       2,644,772
                                              ----------       ----------                ----------      ----------
    Gross profit                                 896,122          819,605                 1,693,003       1,558,233

Selling, general and
    administrative expenses                      959,982          769,975                 1,713,576       1,608,487
Merger costs                                     308,131            --                      308,131          --
Provision for doubtful accounts                   75,000            --                      100,000          --
                                              ----------       ----------                ----------      ----------

    Income (loss) from operations               (446,991)          49,630                  (428,704)       (50,254)

Interest income (expense)                            654             (918)                    3,022         (3,261)
                                              ----------       ----------                ----------      ----------

    Income (loss) before provision
         (benefit) for income taxes
         and minority interest                  (446,337)          48,712                  (425,682)       (53,515)


Provision (benefit) for income taxes             (52,000)          18,500                   (39,000)       (20,000)
                                               ---------        ---------                -----------     ----------

    Net income (loss) before minority
         interest                               (394,337)          30,212                  (386,682)       (33,515)

Minority interest in subsidiary net
    income (loss)                                (14,741)           5,289                   (13,121)        (5,391)
                                              -----------      ----------                -----------     ----------

    Net income (loss)                         $ (379,596)      $   24,923                $ (373,561)     $ (28,124)
                                              ===========      ===========               ==========      ==========


Net income (loss) per common share:

    Primary                                   $  (0.0119)      $    0.0008               $ (0.0117)      $  (0.0015)
                                              ===========      ===========               ==========      ===========

    Fully diluted                             $  (0.0119)      $    0.0008               $ (0.0117)      $  (0.0015)
                                              ===========      ===========               ==========      ===========

 Weighted average number of common shares outstanding:

    Primary                                   32,000,226       29,551,207                32,000,226      19,200,228
                                              ==========       ==========                ==========      ==========
    Fully diluted                             32,000,226       29,551,207                32,000,226      19,200,228
                                              ==========       ==========                ==========      ==========
</TABLE>


     See accompanying notes to condensed consolidated financial statements.


<PAGE>
<TABLE>

                 Extended Family Care Corporation and Subsidiary
                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)


                                                                                        Six Months Ended
                                                                                            June 30,
                                                                                     1997                     1996
<S>                                                                             <C>                       <C>

Cash flow from operating activities:
------------------------------------
    Net loss                                                                    $ (373,561)               $   (28,124)
                                                                                ------------              ------------
    Adjustments to reconcile net loss to net
         cash provided by (used in) operating activities:
         Allowance for doubt accounts                                              100,000                      --
         Depreciation and amortization                                              42,988                     28,774
         Amortization of intangible assets                                          19,842                     19,840
         Benefit for income taxes                                                  (39,000)                   (20,000)
         Minority interest in subsidiary (loss)                                    (13,121)                    (5,391)
Change in operating assets and liabilities:
        (Increase) decrease in assets:
         Accounts receivable                                                      (308,538)                  (161,930)
         Prepaid expenses and other current assets                                 333,535                     47,268
         Other assets                                                                --                       (18,213)
        Increase (decrease) in liabilities:
         Accounts payable and accrued expenses                                     276,790                     (2,471)
          Payroll taxes payable                                                       (236)                    54,723
          Other liabilities                                                           (654)                       (65)
                                                                                -----------               ------------
          Net cash provided by (used in) operating activities                       38,045                    (85,589)
                                                                                -----------               ------------

Cash flow from investing activities:
------------------------------------
    Purchase of property and equipment                                               --                      (106,265)
                                                                                -----------               ------------
        Net cash used in investing activity                                          --                      (106,265)
                                                                                -----------               ------------

Cash flow from financing activity:
----------------------------------
    Payment of dividends                                                          (749,990)                     --
    Payment of obligations under capital leases                                    (11,423)                    (7,040)
    Repayment of loans                                                             (42,000)                    (9,000)
                                                                                -----------               ------------
        Net cash used in financing activities                                     (803,413)                   (16,040)
                                                                                -----------               ------------

Net decrease in cash                                                              (765,368)                  (207,894)

Cash at beginning of period                                                      1,066,193                    511,563
                                                                                ----------               -------------

Cash at end of period                                                           $  300,825                $   303,669
                                                                                ==========               ============

Supplemental disclosures:
    Equipment acquired under capital lease obligation                           $    --                   $     70,223
                                                                                ==========                ============
    Cash paid during the period for:
        Interest                                                                $       49                $      1,608
                                                                                ==========                =============
        Income taxes                                                            $    2,586                $      1,333
                                                                                ==========                =============

</TABLE>


     See accompanying notes to condensed consolidated financial statements.


<PAGE>


                 EXTENDED FAMILY CARE CORPORATION AND SUBSIDIARY
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 1997
                                   (UNAUDITED)


Note 1 - Basis of Presentation

     The accompanying  unaudited condensed  consolidated financial statements of
Extended Family Care Corporation ("EFCC") and its 83% owned subsidiary, TPC Home
Care Services, Inc. ("TPC") (collectively,  the "Company") have been prepared in
accordance with generally accepted  accounting  principles for interim financial
information  and  with the  instructions  to Form  10-QSB  and  Regulation  S-B.
Accordingly,  these  financial  statements do not include all of the information
and notes  required by generally  accepted  accounting  principles  for complete
financial  statements.  In the opinion of management,  all adjustments necessary
for a fair  presentation  (consisting  of normal  recurring  accruals) have been
included.  The results of operations  for the six months ended June 30, 1997 are
not  necessarily  indicative  of the results  that may be expected  for the year
ended December 31, 1997. For further information, refer to the Company's audited
consolidated  financial statements and notes thereto for the year ended December
31, 1996. TPC was merged into EFCC on August 8, 1997. See Note 3.

Note 2 - Net Income (Loss) Per Share

     Net income  (loss) per share is computed by dividing  net income  (loss) by
the weighted  average number of shares of common stock  outstanding  during each
period.

Note 3 - Merger

     An Agreement and Plan of Merger (the "Star Merger Agreement"),  was entered
into on  January  3,  1997  between  EFCC and Star  Multi  Care  Services,  Inc.
("Star"),  pursuant to which Star will  acquire 100% of the  outstanding  common
shares  of EFCC  (the  "Star  Merger").  Under  the  terms  of the  Star  Merger
Agreement,  EFCC's shareholders will receive $2,400,000 in cash or approximately
$.064 per share and $4,850,000 in Star common stock or  approximately  $.129 per
share for total consideration of $7,250,000 or approximately $.193 per share. As
part of the Star Merger Agreement, EFCC paid a $.0234 per share cash dividend on
January 21, 1997 to all its common  shareholders  of record on January 13, 1997.
Cumulative  Star Merger  related legal and other  professional  fees of $308,131
were all expensed in the quarter ending June 30, 1997.

     It is  anticipated  that the Star  Merger  will be  treated  as a  tax-free
reorganization  for Federal  income tax purposes to the extent of Star's  common
stock  received  by  EFCC's  shareholders.  The Star  Merger is  expected  to be
completed  by  September  1997,   subject  to  approval  of  EFCC's  and  Star's
shareholders,  certain state regulatory boards and other conditions.  Star's and
EFCC's  shareholders  have scheduled  separate  meetings on September 5, 1997 to
approve the Star Merger.

     In  connection  with the Star  Merger,  EFCC and Star have  entered  into a
consulting  agreement (the "Consulting  Agreement")  pursuant to which Star will
render  to  EFCC  consulting  and  advisory  services  in  connection  with  the
management,  operation  and  supervision  of EFCC.  The  term of the  Consulting
Agreement  shall end on the earlier of (i) one year from the signing of the Star
Merger  Agreement,  (ii) the closing of the Star Merger or (iii) the termination
of the Star Merger Agreement. In consideration for the consulting services to be
rendered by Star,  EFCC will pay Star  $25,000 per month  payable (a) $15,000 in
arrears  on the last day of each  month  and (b) the  remaining  $10,000  on the
earlier  to occur of the  closing  date or the  termination  of the Star  Merger
Agreement.

<PAGE>


Note 3 - Merger (continued)

     On January 3, 1997, EFCC and Star also entered into a management  agreement
(the "Management  Agreement") pursuant to which Star agreed to act as manager of
EFCC.  The  Management  Agreement  will become  effective  upon  approval of the
Commissioner  of the New York State  Department of Health (the  "Commissioner").
Pursuant  to  the  Management  Agreement,  Star  will  have  the  authority  and
responsibility  to conduct,  supervise  and  effectively  manage the  day-to-day
operation of EFCC. Star will be expected to exercise the reasonable  judgment of
a management company in its management activities.

     The  Management  Agreement may be terminated by the  Commissioner,  without
financial  penalty  to the EFCC  Board,  not more than  sixty  (60)  days  after
notification to the parties of a determination that the management of EFCC is so
deficient  that the  health  and  safety  of  patients  would be  threatened  by
continuation  of the  Management  Agreement.  The  Management  Agreement  may be
terminated by EFCC for cause, on 14 business days' notice, and without cause, on
60 days'  notice.  Unless  sooner  terminated  in  accordance  with terms of the
Management Agreement,  or extended or renewed by mutual agreement of the parties
thereto,  the Management  Agreement will remain in effect until the closing date
of the Star Merger or December 31, 1998, whichever is sooner.

     On March 18, 1997 EFCC entered  into an  Agreement  and Plan of Merger (the
"TPC Merger  Agreement") with its 83% owned  subsidiary,  TPC, pursuant to which
TPC will merge  with and into EFCC and EFCC will be the  surviving  entity  (the
"TPC Merger").  Pursuant to the TPC Merger Agreement,  the minority shareholders
of TPC will receive  5,601,975  common shares of EFCC or 18.745545 common shares
of EFCC for each common  share of TPC they own.  TPC common  stock owned by EFCC
will be canceled as a result of the TPC Merger and no EFCC stock shall be issued
to EFCC in connection therewith. The TPC Merger was completed on August 8, 1997.



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

     Certain  statements  contained in this Report are not historical  facts and
constitute forward looking  statements that involve  uncertainties and risk some
of  which  are  discussed  at  appropriate  points  in the  Report  and are also
summarized below at "Forward Looking Statements - Cautionary Factors."

     The  following  discussion  and  analysis  provides  information  which the
Company's  management believes is relevant to an assessment and understanding of
the Company's  results of operations and financial  condition.  This  discussion
should be read in conjunction with the Company's audited consolidated  financial
statements and notes thereto for the year ended December 31, 1996.


Overview

     The Company's  revenues are derived from providing home health  services to
individuals, in New York, New Jersey and Pennsylvania, through various contracts
with  government  agencies  (under the Medicaid  program) and to a lesser extent
hospitals, insurance companies, private pay and other third party payers.


<PAGE>

Results of Operations

Quarter Ended June 30, 1997 Compared to Quarter Ended June 30, 1996

Net Patient Service Revenue: Net patient service revenue increased $121,170 or 5
% to  $2,339,283  for the quarter  ended June 30, 1997 from  $2,218,113  for the
quarter ended June 30, 1996. The addition of one new satellite  branch from June
30,  1996 to June 30,  1997 and the  continued  growth of the  branch  opened in
February  1996  increased  net patient  service  revenue by $308,944 or 14%. The
increase in net patient service revenue was partially  offset by the sale of the
Jersey City branch in December 1996.

Cost of Services: Cost of services increased $44,653 or 3% to $1,443,161 for the
quarter ended June 30, 1997 from $1,398,508 for the quarter ended June 30, 1996.
The  increase in cost of services is  primarily  due to increases in field staff
payroll costs  resulting from the increase in net patient service  revenue.  The
Company's  growth  in the  number  of  cases  serviced  increased  the  need for
additional field staff to service these cases.

Selling,   General   and   Administrative   Expenses:   Selling,   general   and
administrative  expenses  increased $190,007 or 25% to $959,982 for the quarter
ended June 30, 1997 from $769,975 for the quarter ended June 30, 1996.  Selling,
general and administrative expenses as a percentage of net revenues increased to
41% for the quarter ended June 30, 1997 from 35% for the quarter  ended June
30, 1996. The increase in selling,  general, and administrative expenses for the
quarter ended June 30, 1997 is primarily  attributable  to (i)  severance  costs
relating to the elimination of certain administrative  positions, (ii) the early
termination of operating leases for the Company's Hempstead and East Orange 
branches,  as well as, the  write-off  of  leasehold  improvements,  and (iii)
the payment of consulting fees to Star in connection with the Consulting
Agreement.

Merger Costs:  Cumulative Star Merger related legal and other  professional fees
of $308,131 were all expensed in the quarter ending June 30, 1997.

Provision For Doubtful Accounts: Provision for doubtful accounts for the quarter
ended June 30,1997 were $75,000  consisting of amounts recorded to the allowance
for  doubtful  accounts  to reflect  the net  realizable  value of the  accounts
receivable balance at June 30, 1997.

Provision  (Benefit) For Income Taxes:  Provision for income taxes  decreased by
$70,500 to a benefit for income  taxes of ($52,000)  for the quarter  ended June
30, 1997 from an $18,500  provision  for income taxes for the quarter ended June
30, 1996.  The decrease in provision for income taxes for the quarter ended June
30,  1997 is  primarily  attributable  to a decrease in  earnings,  offset by an
increase in permanent taxable differences relating to merger costs.


Six Months Ended June 30, 1997 Compared to Six Months Ended June 30, 1996

Net Patient Service Revenue:  Net patient service revenue increased  $458,217 or
11 % to $4,661,222  for the six months ended June 30, 1997 from  $4,203,005  for
the six months ended June 30, 1996.  The  addition of one new  satellite  branch
from June 30, 1996 to June 30, 1997 and six full months of operation  during the
six months ended June 30, 1997 for a branch  opened in February  1996  increased
net patient  service  revenue by $530,042  or 13%.  The  increase in net patient
service  revenue was  partially  offset by the sale of the Jersey City branch in
December 1996.

Cost of Services:  Cost of services increased $323,447 or 12 % to $2,968,219 for
the six months ended June 30, 1997 from $2,644,772 for the six months ended June
30,  1996.  The  increase in cost of services is  primarily  due to increases in
field staff payroll  costs  resulting  from the increase in net patient  service
revenue. The Company's growth in the number of cases serviced increased the need
for additional field staff to service these cases.


<PAGE>


Selling,   General   and   Administrative   Expenses:   Selling,   general   and
administrative  expenses  increased  $105,089 or 7 % to  $1,713,576  for the six
months  ended June 30, 1997 from  $1,608,487  for the six months  ended June 30,
1996. The increase in selling,  general, and administrative expenses for the six
months  ended June 30, 1997 is primarily  attributable  to (i)  severance  costs
relating to the elimination of certain administrative  positions, (ii) the early
termination of operating leases for the Hempstead and East Orange  branches,  as
well  as,  the  write-off  of  leasehold  improvements,  (iii)  the  payment  of
consulting  fees to Star in connection with the Consulting  Agreement,  and (iv)
partially  offset by the  integration of certain  administrative  functions as a
result of the Consulting Agreement.

Merger Costs:  Cumulative Star Merger related legal and other  professional fees
of $308,131 were all expensed in the six months ending June 30, 1997.

Provision For Doubtful  Accounts:  Provision  for doubtful  accounts for the six
months ended June 30,1997 were $100,000  consisting  of amounts  recorded to the
allowance  for  doubtful  accounts  to reflect the net  realizable  value of the
accounts receivable balance at June 30, 1997.

(Benefit)  For Income  Taxes:  Benefit for income taxes  increased by $19,000 to
($39,000)  for the six months  ended June 30,  1997 from  ($20,000)  for the six
months ended June 30, 1996. The increase in benefit for income taxes for the six
months ended June 30, 1997 is primarily  attributable to a decrease in earnings,
offset by an increase in permanent taxable differences relating to merger costs.

Inflation and Seasonality

     Medicaid reimbursements,  which represent the Company's principal source of
revenue, have historically been adjusted to keep pace with inflation.  There can
be  no  assurance  that  future  Medicaid  reimbursement  will  keep  pace  with
inflation. See "Forward-Looking Statements - Cautionary Factors."

     The Company's business is generally not subject to seasonal trends.

Liquidity and Capital Resources

     The nature of the Company's  business  requires weekly payments of wages to
its personnel as they render services,  while the Company receives  payments for
services  rendered over an extended  period of time (30 to 90 days). At June 30,
1997 the Company's accounts  receivable balance increased $208,538 to $1,274,815
from  $1,066,277 at December 31, 1996.  The increase in accounts  receivable was
due to increased net patient  service revenue offset by a decrease in days sales
in  accounts  receivable  from  approximately  54 to 45 days  and an  additional
$100,000 allowance for doubtful accounts.

     At June 30, 1997 the Company had working capital of $400,238. Historically,
the Company's cash  requirements  have been met internally from operations.  The
Company  currently has no outstanding  bank debt nor does it have any agreements
for a line of credit.

     EFCC's  working  capital was reduced on January 21, 1997 as a result of the
payment of a special dividend in the amount of $749,990.  EFCC's working capital
should be sufficient to fund existing operations for the next 12 months, but may
not be  sufficient  to  fund  expanded  activities  if the  Star  Merger  is not
consummated.  If the Star Merger is  consummated,  EFCC's  capital  requirements
would be provided by Star.

     Net cash  provided by (used in)  operating  activities  for the Company was
$38,045 for the six months ended June 30, 1997 and  ($85,589) for the six months
ended June 30, 1996. The change in cash provided by operating activities for the
quarter ended June 30, 1997,  and cash used in operations  for the quarter ended
June 30,  1996 was the result of  increased  gross  profit  offset by  increased
selling,  general and  administrative  expenses  and a decrease in the number of
days sales in accounts receivable from approximately 54 days to 45 days.

<PAGE>

Forward Looking Statements - Cautionary Factors

     Certain  statements in this report are not historical  facts and constitute
"forward-looking  statements"  within  the  meaning  of the  Private  Securities
Litigation Reform Act of 1995. Such forward-looking statements involve known and
unknown  risks,  uncertainties  and other  factors  which  may cause the  actual
results of operations of EFCC and TPC to be materially different from historical
results  or from  any  results  expressed  or  implied  by such  forward-looking
statements.  Such risks,  uncertainties  and other factors include,  but are not
limited to, the risks set forth below.

     HEALTH CARE REFORM.  As a result of the escalation of health care costs and
the  inability of many  individuals  and employers to obtain  affordable  health
insurance,  numerous  proposals  have been or may be  introduced  in the  United
States  Congress  and  state   legislatures,   and  other  proposals  are  being
considered,  relating to health care reform. Such proposals have included, among
other  things,  provision of  universal  access to health  care,  reforming  the
payment  methodology  for  health  care  goods and  services  by both the public
(Medicare and Medicaid)  and private  sectors,  and methods to control or reduce
public and private  spending on health care. The ultimate  timing or effect such
reforms may have on the Company  cannot be  predicted  and no  assurance  can be
given  that any such  reforms  will not have a  material  adverse  effect on the
Company's revenues and/or earnings.  Short-term cost containment initiatives may
vary substantially from long-term reforms and may have a material adverse effect
on the Company.

     REGULATORY  ENVIRONMENT.  The Company's  business is subject to substantial
regulation  by  state  and  local  authorities.   These  regulations  can  cause
significant time delays, as well as additional costs, as the Company must comply
with state  eligibility  standards for licensing and/or  accreditation as a Home
Care provider.  The imposition of more stringent regulatory  requirements or the
denial,  revocation, or suspension of any license or accreditation necessary for
the  Company to operate in a  particular  market  could have a material  adverse
effect on the Company's operations.

     Medicaid  reimbursement rates in New York and New Jersey are not negotiated
by the Company, but are established by these respective states. Recent budgetary
pressures  at the federal and state  governmental  levels  have,  and may in the
future,   reduce  the  allocation  of  federal  and  state   budgetary   dollars
appropriated  for the  Medicaid  program.  Such  reductions  may have a negative
impact on the Company's revenues and profitability.  Federal and state budgetary
pressures  may  adversely  impact the  Company  by: (1)  reducing  the  Medicaid
reimbursement  rates paid by the state;  (2)  reducing  the number of hours that
will be reimbursed  per case; and (3) reducing the funding of one or more public
assistance agencies with which the Company presently does business.

     On July 9, 1996,  authorities of the State of New Jersey met to discuss the
reduction of Medicaid  reimbursement  rates for the year July 1, 1996 to July 1,
1997.  The  meeting  did not  result in a  material  reduction  in the  Medicaid
reimbursement  rates for the  period  July 1, 1996 to July 1,  1997.  During the
quarter  ended June 30, 1996, a reduction in  authorized  Medicaid  reimbursable
hours per case was imposed by New York State.  The results of this reduction did
not have a material  adverse  effect on the Company's  results of operations for
the  fiscal  year  ended  December  31,  1996.  However,  if a similar  Medicaid
reduction is imposed by the State of New Jersey,  the results of this  reduction
would have a material adverse effect on the Company's  results of operation,  as
the  Company  currently  derives a  majority  of its  revenues  from New  Jersey
Medicaid  reimbursements.  The Company  cannot  predict the  magnitude of future
reductions, if any, in Medicaid reimbursement rates or reimbursable hours.

     New York State  requires  approval of the Public Health  Council of the New
York State  Department  of Health  ("NYPHC")  for any  change in a  "Controlling
Person" of an operator  of a licensed  health care  services  agency  ("LHCSA").
Control of an entity is presumed to exist if any person owns,  controls or holds
the power to vote 10% or more of the voting  securities  of such entity.  To the
extent the Company may seek to acquire control of

<PAGE>


an LHCSA,  the Company  would have to be granted the approval of the NYPHC prior
to exercising  control over such LHCSA.  NYPHC  approval is also required if any
entity  seeks  control of more than 10 percent of the voting  securities  of the
Company or TPC. The NYPHC has approved the change of control that  occurred from
the acquisition by Coss of  approximately  66 percent of EFCC's common stock and
the change of control which occurred when Arbor Home Health Care  Holdings,  LLC
("Arbor")  acquired 40 percent of EFCC's common stock. An application to approve
Star's  control  over the  Company  pursuant to the Star  Merger  Agreement  was
approved on June 27, 1997. See Note 3 to the Consolidated Financial Statements.

     Health care is subject to laws and regulations of federal,  state and local
governments.  The  failure  to obtain,  renew or  maintain  any of the  required
regulatory  approvals  or licenses  could  adversely  affect the business of the
Company and could prevent it from offering products or services to patients.

     POSSIBLE NEED FOR ADDITIONAL FINANCING. The Company does not currently have
the benefit of a substantial  amount of the $1.3 million in capital  provided by
Arbor due to the payment of a special  dividend of $750,000 in January  1997. If
the  Company's  business  expands,   significant  additional  financing  may  be
required.  If the Company  were unable to secure such  financing on terms deemed
favorable by management,  such inability would have a material adverse effect on
the  Company's  financial  condition.  If the Star  Merger is  consummated,  the
Company's  capital  requirements  would be provided  by Star.  See Note 3 to the
Consolidated Financial Statements.

     POSSIBLE  ADVERSE  IMPACT  IF  STAR  MERGER  IS  NOT  CONSUMMATED.  Certain
administrative  functions of TPC have been  performed by Star in  furtherance of
the Star Merger  Agreement,  including  the  administration  of certain  patient
files. If, for any reason, the Star Merger were not to occur, transferring these
functions back to EFCC would be costly, time consuming and may not be completely
effective in returning  EFCC to the status of its  operations  prior to entering
into the Star Merger and may have an adverse affect on EFCC.


<PAGE>


Part II: OTHER INFORMATION


Item 5.  Other information:

     On January 3, 1997,  EFCC and Star entered into the Star Merger  Agreement.
On March 18, 1997, EFCC and TPC entered into the TPC Merger Agreement.  See Note
3 to the Consolidated Financial Statements.


Item 6.   Exhibits and reports on Form 8-K.

          a. Exhibits

             See accompanying index to Exhibits.

          b. EFCC did not file any reports on Form 8-K in the  quarter  reported
             on.

           All  other  items  required  in Part II are  not  applicable  for the
quarter ended June 30, 1997.


<PAGE>


SIGNATURES


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




                       (Registrant) EXTENDED FAMILY CARE CORPORATION



Date:  August 19, 1997           By:/s/ Joseph Heller  
                                    -------------------------------------------
                                    Joseph Heller, Vice President, Acting Chief
                                    Executive Officer, Controller, Principal
                                    Financial Officer and Director

<PAGE>

                                INDEX TO EXHIBITS


Exhibits                                                                   Page


2.1  Agreement and Plan of Merger, dated as of January 3, 1997 among Star,
      EFCC Acquisition Corp. and EFCC, dated as of January 3, 1997. (1)

2.2  Plan and  Agreement of Merger  between TPC and EFCC dated March 18,
      1997. (2)

27   Financial Data Schedule.                                                15

===============================================================================

(1)        Included  as Exhibit 1 to the Amended  Schedule  13D filed by Stephen
           Sternbach  on January 17, 1997 and  incorporated  herein by reference
           thereto.

(2)        Filed as an  Exhibit  to EFCC's  Form  10-KSB  for the  period  ended
           December 31, 1996 and incorporated herein by reference thereto.