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Table of Contents
 
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 10-Q
 
(Mark One)
x
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
  
 
SECURITIES EXCHANGE ACT OF 1934
 
  
 
For the quarterly period ended June 30, 2002
 
OR
 
¨
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
  
 
SECURITIES EXCHANGE ACT OF 1934
 
  
 
For the transition period from                      to                     
 
Commission File Number: 0-24087
 
 
MediaBin, Inc.
(Exact Name of Registrant as Specified in Its Charter)
 
Georgia
  
58-1741516
(State or Other Jurisdiction
of Incorporation or Organization)
  
(I.R.S. Employer
Identification No.)
3525 Piedmont Road
Seven Piedmont Center
Suite 600
Atlanta, Georgia
  
30305-1530
(Address of Principal Executive Offices)
  
(Zip Code)
 
Registrant’s Telephone Number, Including Area Code: (404) 264-8000
 
 
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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  ¨
 
The number of shares of the Registrant’s capital stock as of June 30, 2002, the latest practicable date, is as follows: 17,529,607 shares of common stock, $.01 par value.
 

Table of Contents
 
MEDIABIN, INC.
 
FORM 10-Q
 
QUARTER ENDED JUNE 30, 2002
 
TABLE OF CONTENTS
 
 
PART I    FINANCIAL INFORMATION
     
Item 1.
   
Financial Statements.
     
       
3
       
4
       
5
       
6
Item 2.
      
7
Item 3.
      
10
PART II    OTHER INFORMATION
     
Item 1.
      
11
Item 2.
      
11
Item 3.
      
11
Item 4.
      
11
Item 5.
      
11
Item 6.
      
11
  
13

2

Table of Contents
 
PART I
 
FINANCIAL INFORMATION
 
Item 1.    Financial Statements.
 
MEDIABIN, INC.
 
CONDENSED CONSOLIDATED BALANCE SHEETS
    
June 30,
2002
     
December
2001
  
    
(unaudited)
         
ASSETS
                  
Current assets
                  
Cash and equivalents
   
$
80,735
 
   
$
1,030,398
 
Accounts receivable
   
 
1,269,799
 
   
 
624,750
 
Prepaid expenses and other assets
   
 
168,477
 
   
 
101,997
 
    
  
Total current assets
   
 
1,519,011
 
   
 
1,757,145
 
Property and equipment
                  
Computer equipment and software
   
 
3,235,267
 
   
 
3,159,381
 
Furniture and equipment
   
 
403,944
 
   
 
403,951
 
Leasehold improvements
   
 
152,057
 
   
 
152,056
 
    
  
Total property and equipment
   
 
3,791,268
 
   
 
3,715,388
 
Accumulated depreciation
   
 
(3,393,748
)
   
 
(3,305,477
)
    
  
Net property and equipment
   
 
397,520
 
   
 
409,911
 
Other assets
   
 
76,747
 
   
 
21,046
 
    
  
Total assets
   
$
1,993,278
 
   
$
2,188,102
 
    
  
LIABILITIES AND SHAREHOLDERS’ DEFICIT
                  
Current liabilities
                  
Accounts payable
   
$
695,901
 
   
$
468,970
 
Accrued liabilities
   
 
507,500
 
   
 
591,828
 
Deferred revenue
   
 
521,404
 
   
 
259,105
 
Short term debt
   
 
3,362,501
 
   
 
1,338,418
 
Current subordinated shareholder loans
   
 
5,854,934
 
   
 
5,850,492
 
Current maturities of capitalized leases
   
 
0
 
   
 
3,640
 
Other current liabilities
   
 
150,736
 
   
 
183,406
 
    
  
Total current liabilities
   
 
11,092,976
 
   
 
8,695,859
 
Non-current liabilities
                  
Subordinated shareholder loans
   
 
7,398,015
 
   
 
5,958,333
 
Other non-current liabilities
   
 
15,422
 
   
 
0
 
    
  
Total non-current liabilities
   
 
7,413,437
 
   
 
5,958,333
 
Shareholders’ deficit
                  
Common stock
   
 
175,297
 
   
 
175,297
 
Additional paid-in capital
   
 
31,832,625
 
   
 
31,832,625
 
Accumulated deficit
   
 
(48,521,057
)
   
 
(44,474,012
)
    
  
Total shareholders’ deficit
   
 
(16,513,135
)
   
 
(12,466,090
)
    
  
Total liabilities and shareholders’ deficit
   
$
1,993,278
 
   
$
2,188,102
 
    
  
 
See accompanying notes.

3

Table of Contents
 
Item 1.    Financial Statements (continued).
 
MEDIABIN, INC.
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
 
    
Three Months Ended
June 30,
     
Six Months Ended
June 30,
  
    
2002
     
2001
     
2002
     
2001
  
Revenue:
                                    
License
   
$
701,513
 
   
$
561,764
 
   
$
1,141,558
 
   
$
778,514
 
Services
   
 
304,041
 
   
 
147,144
 
   
 
675,767
 
   
 
278,284
 
    
  
  
  
Total revenue
   
 
1,005,554
 
   
 
708,908
 
   
 
1,817,325
 
   
 
1,056,798
 
Cost of revenue
   
 
276,214
 
   
 
93,170
 
   
 
478,256
 
   
 
149,154
 
    
  
  
  
Gross Margin
   
 
729,340
 
   
 
615,738
 
   
 
1,339,069
 
   
 
907,644
 
Operating expenses:
                                    
Sales and marketing
   
 
1,144,611
 
   
 
935,741
 
   
 
2,110,172
 
   
 
1,800,496
 
Research and development
   
 
800,279
 
   
 
943,682
 
   
 
1,761,784
 
   
 
1,941,615
 
General and administrative
   
 
485,801
 
   
 
594,138
 
   
 
1,102,732
 
   
 
1,092,593
 
    
  
  
  
Total operating expenses
   
 
2,430,691
 
   
 
2,473,561
 
   
 
4,974,688
 
   
 
4,834,704
 
    
  
  
  
Operating loss
   
 
(1,701,351
)
   
 
(1,857,823
)
   
 
(3,635,619
)
   
 
(3,927,060
)
Other income (expense):
                                    
Interest income
   
 
403
 
   
 
3,775
 
   
 
2,241
 
   
 
12,606
 
Interest expense
   
 
(216,291
)
   
 
(150,258
)
   
 
(413,531
)
   
 
(283,898
)
    
  
  
  
Total other income (expense)
   
 
(215,888
)
   
 
(146,483
)
   
 
(411,290
)
   
 
(271,292
)
    
  
  
  
Net loss
   
$
1,917,239
)
   
$
2,004,306
)
   
$
(4,046,909
)
   
$
(4,198,352
)
    
  
  
  
Basic and diluted loss per share
   
$
(0.11
)
   
$
(0.11
)
   
$
(0.23
)
   
$
(0.24
)
    
  
  
  
Weighted average shares outstanding—basic and diluted
   
 
17,529,607
 
   
 
17,529,607
 
   
 
17,529,607
 
   
 
17,529,607
 
    
  
  
  
 
 
 
See accompanying notes.

4

Table of Contents
 
Item 1.    Financial Statements (continued).
 
MEDIABIN, INC.
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
    
Six Months Ended June 30,
  
    
2002
     
2001
  
Operating activities
                  
Net loss
   
$
(4,046,909
)
   
$
(4,198,352
)
Adjustments to reconcile net loss to net cash used in operating activities:
                  
Depreciation and amortization
   
 
88,273
 
   
 
94,714
 
Changes in assets and liabilities:
                  
Accounts receivable
   
 
(645,049
)
   
 
(78,047
)
Prepaid expenses and other assets
   
 
(122,196
)
   
 
(65,507
)
Accounts payable
   
 
226,931
 
   
 
85,987
 
Accrued expenses
   
 
(84,328
)
   
 
125,230
 
Deferred revenue
   
 
262,299
 
   
 
74,396
 
Other liabilities
   
 
579,558
 
   
 
63,195
 
    
  
Net cash used in operating activities
   
 
(3,741,421
)
   
 
(3,898,384
)
Investing activities
                  
Purchases of property and equipment
   
 
(75,880
)
   
 
(132,447
)
    
  
Net cash used in investing activities
   
 
(75,880
)
   
 
(132,447
)
Financing activities
                  
Proceeds from subordinated shareholder loans
   
 
2,715,000