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Previous: SILVER KING COMMUNICATIONS INC, SC 13D/A, 1996-11-21 |
Next: PERMA FIX ENVIRONMENTAL SERVICES INC, 8-K, 1996-11-21 |
Securities & Exchange Commission
Washington, D.C. 20549
FORM 10-QSB/A (No. 1)
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission file number 0-25764
MarketLink, Inc.
(Exact name of small business issuer as specified in its charter)
Minnesota 41-1675041
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
10340 Viking Drive, Suite 150
Eden Prairie, MN 55344
(Address of principal executive offices)
612-996-9000
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by
section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.YES [X]NO [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant 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 court. NOT APPLICABLE
APPLICABLE TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: 2,943,831 shares outstanding
as of 10/31/96, par value $.01 per share.
Transitional Small Business Disclosure Format
(check one) YES [ ] NO [X]
<PAGE>
Part 1 - Financial Information
Item 1. Financial Statements
<TABLE>
<CAPTION>
MarketLink, Inc.
Balance Sheets
September 30,
1996 December 31,
(unaudited) 1995
----------------------------------------
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $1,121,751 $2,720,771
Trade accounts receivable, net of allowance for
doubtful accounts of $7,500 in 1995 and $95,025 in 1996 178,882 70,946
Accrued interest receivable
Minimum lease payments receivable 34,200 34,200
Computer parts and supplies, net of reserve for
obsolescence of $1,000 in 1995 and $4,000 in 1996 57,110 123,463
Prepaid expenses 55,731 63,470
--------------- -------------------
Total current assets 1,447,674 3,012,850
Property and equipment:
Furniture and equipment 826,473 624,691
Equipment leased to others 314,504 313,664
--------------- -------------------
1,140,977 938,355
Accumulated depreciation (509,329) (302,551)
--------------- -------------------
631,648 635,804
Other assets:
Goodwill 640,591 --
Investment in sales type leases 19,468 38,514
Merger costs 62,492 --
Deposits 45,885 11,465
--------------- -------------------
768,436 49,979
--------------- -------------------
Total Assets 2,847,758 3,698,633
=============== ===================
Liabilities and shareholders' equity
Current liabilities
Accounts payable $174,350 $96,199
Notes payable 10,310 --
Current maturities of long-term debt 54,276 73,844
Accrued expenses 3,004 25,038
Customer deposits 1,642 --
Deferred revenue 50,337 45,147
Other accrued liabilities 244,883 119,662
--------------- ------------------
Total current liabilities 538,802 359,890
Long-term debt - related parties 3,261 19,380
Long-term debt, net of current maturities 72,844 64,918
Shareholders' equity:
Common stock, par value $.01 per share
Authorized shares--5,000,000
Issued and outstanding shares:
1996 and 1995--2,943,831 and 2,931,415 29,438 29,314
Additional paid-in capital 6,346,663 6,081,148
Accumulated deficit (4,143,250) (2,856,017)
--------------- ------------------
Total shareholders' equity 2,232,851 3,254,445
--------------- ------------------
Total liabilities and shareholders' equity $2,847,758 $3,698,633
=============== ==================
See accompanying notes.
</TABLE>
<PAGE>
MarketLink, Inc.
Statements of Operations
(unaudited)
<TABLE>
<CAPTION>
Three months ended September 30, Nine months ended September 30,
1996 1995 1996 1995
-------------------- -----------------------------------------------------
<S> <C> <C> <C> <C>
Revenues $319,917 $229,675 $743,375 $555,069
Cost of revenues 156,621 73,399 334,337 280,127
-------------------- -----------------------------------------------------
Gross profit 163,296 156,276 409,038 274,942
Operating expenses:
Selling, general and administrative 456,953 242,872 1,330,770 644,862
Research and development 125,382 125,277 449,631 320,365
N11 application costs -- -- -- 10,203
-------------------- -----------------------------------------------------
Total operating expenses 582,335 368,149 1,780,401 975,430
-------------------- -----------------------------------------------------
Operating loss (419,039) (211,873) (1,371,363) (700,488)
Interest income 26,644 51,500 84,198 66,297
Interest expense (5,761) (5,508) (14,802) (74,652)
Other income -- -- 14,734 7,749
-------------------- -----------------------------------------------------
Net loss $(398,156) $(165,881) $(1,287,233) $(701,094)
==================== =====================================================
Net loss per share $(0.14) $(0.06) $(0.44) $(0.34)
Weighted average number of shares outstanding 2,925,831 2,930,452 2,921,300 2,044,125
</TABLE>
<PAGE>
MarketLink, Inc.
Statements of Cash Flows
(unaudited)
<TABLE>
<CAPTION>
Six months ended September 30,
1996 1995
-------------------- ------------
<S> <C> <C>
Operating Activities
Net Loss $(1,287,233) $(701,094)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation 211,320 155,940
Amortization of goodwill 10,860 --
Net gain on sale of property and (4,634) --
equipment
Changes in operating assets and liabilities:
Accounts receivable (107,936) (56,388)
Minimum lease pmts receivable 25,650 (58,682)
Computer parts and supplies 66,353 (149,754)
Prepaid expenses and deposits (9,439) (37,846)
Other assets (86,338) --
Accounts payable 78,151 (178,089)
Accrued liabilities 105,449 (72,791)
Deferred revenue 5,190 35,219
-------------------- ------------
Net cash used in operating activities (992,607) (1,063,485)
Investing Activities:
Investment in subsidiary 265,645 --
Increase in goodwill (651,451) --
Short term investments -- (3,223,777)
Sale of property and equipment 79,685 --
Capital expenditures (282,215) (110,104)
-------------------- ------------
Net cash used in investing activities (588,336) (3,333,881)
Financing activities:
Proceeds from issuance of common stock -- 5,556,248
Deferred stock offering costs -- 123,145
Increase in capital leases 23,163 --
Payments on short-term and long-term notes payable (41,240) (1,335,033)
------------------- -------------
Net cash (used) provided by financing activities (18,077) 4,344,360
------------------- -------------
Decrease in cash and cash equivalents (1,599,020) (53,006)
Cash and cash equivalents at beginning of period 2,720,771 97,931
------------------- -------------
Cash and cash equivalents at end of period $1,121,751 $44,925
=================== =============
See accompanying notes.
</TABLE>
<PAGE>
MarketLink, Inc.
Notes to Financial Statements
September 30, 1996
(Unaudited)
Note. 1. Summary of Significant Accounting Policies.
Interim Financial Information
The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information.
Accordingly, certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been omitted pursuant to such rules and regulations. Operating
results for the nine months ended September 30, 1996 are not necessarily
indicative of the results that may be expected for the year ended December 31,
1996. The accompanying financial statements and related notes should be read in
conjunction with the audited financial statements of the Company, and notes
thereto, for the fiscal year ended December 31, 1995, included in the Company's
Form 10-KSB for the year ended December 31, 1995 and the Company's 1995 Annual
Report to Shareholders.
The financial information furnished reflects, in the opinion of management, all
adjustments, consisting of normal recurring accruals, necessary for a fair
presentation of the results of the interim periods presented.
Reclassifications
Certain prior year items have been reclassified to conform with the 1996
presentation.
<PAGE>
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of 1934, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
MARKETLINK, INC.
(Registrant)
Date: November 20, 1996
BY: /s/ Michael J. Ryan
Michael J. Ryan, Vice President of Finance
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