DELAWARE		76-0486898
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

3701 Kirby Drive, Suite 550 Houston, Texas		77098
(Address of principal executive offices)		(Zip Code)

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PART I.    FINANCIAL INFORMATION
Item 1.		Financial Statements (Unaudited)
		Condensed Consolidated Balance Sheets as of December 31, 2001 and September 30, 2002		3
		Condensed Consolidated Statements of Operations For the Three and Nine Months Ended September 30, 2001 and 2002		4
		Condensed Consolidated Statement of Changes in Stockholders’ Equity (Deficit) For the Nine Months Ended September 30, 2002		5
		Condensed Consolidated Statements of Cash Flows For the Nine Months Ended September 30, 2001 and 2002		6
		Notes to Condensed Consolidated Financial Statements		7
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		16
Item 3.		Quantitative and Qualitative Disclosures About Market Risks		24
Item 4.		Controls and Procedures.		24
PART II.    OTHER INFORMATION
Item 1.		Legal Proceedings		25
Item 2.		Changes in Securities and Use of Proceeds		25
Item 3.		Defaults Upon Senior Securities		26
Item 4.		Submission of Matters to a Vote of Security Holders		26
Item 5.		Other Information		26
Item 6.		Exhibits and Reports on Form 8-K		26
SIGNATURES				30

		December 31, 2001				September 30, 2002
ASSETS
Current assets:
Cash and cash equivalents		$	3,979			$	2,098
Patient receivables, net			4,810				6,075
Unbilled patient receivables, net			2,869				2,871
Prepaid expenses and other current assets			1,373				1,617
Total current assets			13,031				12,661
Property and equipment, net			14,746				12,213
Goodwill and intangibles, net			54,994				17,926
Other assets			1,311				3,088
Total assets		$	84,082			$	45,888
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Current portion of long-term debt		$	63,759			$	1,768
Accounts payable and accrued liabilities			16,983				13,234
Deferred compensation payable, related party			132				—
Total current liabilities			80,874				15,002
Long-term debt, net of current portion			16				47,681
Other long-term liabilities			—				1,945
Commitments and contingencies
Stockholders’ equity (deficit):
Preferred Stock, $.001 par value, 1,000,000 shares authorized, 211,282 shares Series A-1 issued and outstanding at September 30, 2002			—				—
Common stock, $.001 par value, 19,000,000 shares authorized, 6,417,206 shares issued and outstanding			6				6
Additional paid-in capital			42,086				46,575
Accumulated deficit			(38,900	)			(65,321	)
Total stockholders’ equity (deficit)			3,192				(18,740	)
Total liabilities and stockholders’ equity (deficit)		$	84,082			$	45,888

		Three Months Ended September 30,								Nine Months Ended September 30,
		2001				2002				2001				2002
Net patient revenues		$	23,152			$	25,934			$	75,379			$	76,568
Expenses:
Dentist salaries and other professional costs			6,527				7,627				20,508				22,203
Clinical salaries			4,837				5,588				14,822				16,755
Dental supplies and laboratory fees			2,914				2,951				8,718				8,912
Rental and lease expense			1,499				1,483				4,914				4,545
Advertising and marketing			937				576				2,525				1,876
Depreciation and amortization			1,596				912				4,992				2,730
Other operating expenses			2,161				2,065				5,873				6,049
Bad debt expense			810				1,586				3,122				3,469
General and administrative			2,721				2,522				8,079				7,878
Restructuring costs and other charges			277				3,210				2,066				4,394
Asset impairment			3				123				537				53
Total expenses			24,282				28,643				76,156				78,864
Operating loss			(1,130	)			(2,709	)			(777	)			(2,296	)
Interest expense			1,784				1,208				6,142				4,481
Other income			(23	)			(3	)			(49	)			(22	)
Gain on early extinguishment of debt			—				(17,334	)			—				(17,334	)
Income (loss) before provision for income taxes and cumulative effect of change in accounting principle			(2,891	)			13,420				(6,870	)			10,579
Provision for income taxes			—				—				—				—
Income (loss) before cumulative effect of change in accounting principle			(2,891	)			13,420				(6,870	)			10,579
Cumulative effect of change in accounting principle			—				—				(250	)			(37,000	)
Net income (loss)		$	(2,891	)		$	13,420			$	(7,120	)		$	(26,421	)
Basic and diluted earnings per share:
Income (loss) per common share:
Income (loss) before cumulative effect of change in accounting principle		$	(0.45	)		$	0.22			$	(1.07	)		$	0.43
Cumulative effect of change in accounting principle			—				—				(0.04	)			(1.49	)
Net income (loss)		$	(0.45	)		$	0.22			$	(1.11	)		$	(1.07	)
Weighted average number of common and common equivalent shares outstanding
Basic and diluted			6,417				60,863				6,417				24,765

		Preferred Stock					Common Stock					Additional Paid-in Capital			Accumulated Deficit				Stockholders’ Equity (Deficit)
		Shares		Amount			Shares		Amount
Balance, January 1, 2002		—		$	—		6,417,206		$	6		$	42,086		$	(38,900	)		$