1 united states securities and exchange commission washington dc 20549 form 10 qsb quarterly report under section 13 or 15 d of the act 1934 for period ended june 30 2003 file number 0 25159 lion inc exact name small business issuer as specified in its charter 91 2094375 state other jurisdiction incorporation organization irs employer identification no 4700 42nd ave sw suite 430 seattle wa 98116 address principal executive offices zip code 206 577 1440 s telephone na former fiscal year if changed since last august 7 approximately 31 717 978 shares company common stock were outstanding 2 quarter index page part i financial information item statements balance sheets at unaudited december 2002 3 operations three six month periods 4 cash flows months 5 notes to 6