Xedar Corporation
2500 Central Avenue
Boulder, CO 80301
November 12, 1995
Securities and Exchange Commission
Washington, D.C. 20549
Pursuant to the requirements of the Securities Exchange Act of 1934, we
are transmitting herewith the attached Form 10Q.
Sincerely,
Hans R. Bucher
Hans R. Bucher, President
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One):
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
_________________________________
( ) TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE EXCHANGE ACT
For the transition period from to
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Commission File Number 0-8356
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XEDAR CORPORATION
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(Exact name of small business issuer as specified in its charter)
Colorado 84-0684753
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(State or other jurisdiction of
incorporation or organization) (IRS Employer Identification No.)
2500 Central Avenue, Boulder, CO 80301
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(Address of principal executive offices)
(303) 443-6441
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(Issuer's telephone number)
Check whether the Issuer (1) filed all documents and 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
______ ______
State the number of shares outstanding of each of the issuer's classes
of common stock as of the latest practicable date: No Par Value Common
Stock - 1,837,224 shares as of November 15, 1995.
Transitional Small Business Disclosure Format (check one):
Yes No X
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XEDAR CORPORATION
INDEX
Page No.
PART I Financial Information
Item 1 Financial Statements
Condensed Balance Sheet,
September 30, 1995 1
Condensed Statement of Operations, Nine
Months ended September 30, 1995 and 1994 2
Condensed Statement of Cash Flows - Nine
Months Ended September 30, 1995 and 1994 3
Notes to Condensed Financial Statements 4
Item 2 Management's Discussion and Analysis or
Plan of Operation 5
PART II Other Information 7
SIGNATURES 8
PART I - FINANCIAL INFORMATION
XEDAR CORPORATION
CONDENSED BALANCE SHEET
September 30, 1995
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $1,027,293
Accounts receivable 251,713
Inventories 342,391
Refundable income taxes 2,239
Prepaid expenses -
Total current assets 1,623,636
Long term receivable 181,807
Property and equipment 143,760
Less accumulated depreciation 111,223
32,537
Other assets 8,505
$1,846,485
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 30,676
Accrued liabilities
Accrued payroll and commissions 17,756
Accrued vacation 34,742
Income taxes payable - _
Total current liabilities $ 83,174
Stockholders' equity
Common stock 1,617,617
Additional paid in capital 40
Accumulated earnings 145,354
Total stockholders' equity 1,763,011
$1,846,485
==========
The accompanying notes are an integral part of these condensed
financial statements.
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XEDAR CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Nine Months Ended Three Months Ended
September 30 September 30
----------------- ------------------
1994 1995 1994 1995
Sales $ 863,471 $937,508 $294,945 $351,987
Cost of Sales 400,454 511,703 192,393 201,315
Gross Profit 463,017 425,805 102,552 150,672
Research and Development costs 191,090 30,784 53,276 9,784
Selling, general and
administrative expenses 134,105 176,040 49,316 60,633
325,195 206,824 102,592 70,417
Operating income (loss) 137,822 218,981 ( 40) 80,255
Other income 22,712 27,027 8,576 8,408
Income before income
taxes $160,534 $246,008 $ 8,536 $ 88,663
Income taxes 46,000 82,050 ( 9,000) 38,910
Net income $114,534 $163,958 $ 17,536 $ 49,753
======== ======== ======== ========
Weighted average shares
outstanding 1,823,224 1,837,224 1,823,224 1,837,224
Net income per
common share $ .06 $ .09 $ .01 $ .03
====== ======= ======= =======
The accompanying notes are an integral part of these condensed
financial statements.
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XEDAR CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
Nine Months Ended
September 30,
------------------------
1994 1995
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Net Income $ 114,534 $ 163,958
Adjustments to reconcile cash
net income to net cash
provided in operating
activities
Depreciation of property and
equipment 7,977 8,244
(Increase) decrease in assets
Accounts receivable ( 86,020) ( 32,096)
Inventories ( 17,315) ( 31,034)
Refundable Income Taxes 16,800
Other assets and long term
receivable ( 11,285) 14,614
Decrease in liabilities (170,632) ( 26,474)
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Net cash provided by (used in) (162,741) 114,012
operating activities ---------- ---------
Cash flows used in investing
activities-capital expenditures ( 10,399) ( 7,101)
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Cash flows from financing activities-
proceeds from issuance of common stock 5,000 -
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Net increase (decrease) in cash
and cash equivalents (168,140) 106,911
Cash and cash equivalents at
beginning of nine month period 974,410 920,382
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Cash and cash equivalents at
end of nine month period $806,270 $1,027,293
======== ==========
The accompanying notes are an integral part of these financial
statements.
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XEDAR CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
September 30, 1995
(Unaudited)
NOTE 1: BASIS OF PRESENTATION
The condensed financial statements included herein are unaudited.
In the opinion of management, all adjustments, consisting of normal
recurring accruals, have been made which are necessary for a fair
presentation of the financial position of the Company at September 30,
1995 and the results of operations for the nine month periods ended
September 30, 1995 and 1994. Quarterly results are not necessarily
indicative of expected annual results. For a more complete
understanding of the Company's operations and financial position,
reference is made to Management's Discussion and Analysis of Financial
Condition and Results of Operations herein and the financial statements
of the Company, and related notes thereto, filed with the Company's
annual report on Form 10-KSB for the year ended December 31, 1994,
previously filed with the Securities and Exchange Commission.
NOTE 2: INVENTORIES
At September 30, 1995 inventories consisted of:
Raw Materials $ 8,351
Work in process 332,136
Finished goods 1,904
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TOTAL 342,391
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NOTE 3: INCOME PER COMMON SHARE
Income per common share amounts were computed by dividing the net
income by weighted average number of shares outstanding for the period.
Eligible stock options have not been considered in the computation
since their inclusion would not have a material dilutive effect.
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XEDAR CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Sales and Gross Profit
Sales by product line for the first nine months of l994 and 1995 were:
(Amounts in $000)
Increase
1994 1995 (Decrease)
Commercial products $182 $ 30 $(152)
Design and development contracts 61 274 213
Single customer production programs 620 634 14
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Totals $ 863 $938 $ 75
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Commercial product sales for the three quarters ended September 30,
1995 decreased by $152,000 as compared to 1994 due to a lower demand
for infrared cameras.
Design and development contract sales increased in the three quarters
ended September 30, 1995 by $213,000 as compared to 1994. This
increase is due to a current contract for special CCD Cameras.
Single customer production program sales remained essentially the same
as compared to the prior year.
The gross profit shows a decrease from 53.6% in 1994 to 47% in 1995 as
a result of the change of sales mix, a shifting of research and
development resources to production, an increase in direct material
costs and additional costs for customer product development.
Research and Development
Research and development expenses were $ 30,784 in the three quarters
ended September 30, 1995, as compared to $191,090 in 1994. The 1994
funds expended were used to develop prototype CCD cameras for various
applications. In the three quarters ended September 30, 1995 the
Company has focused its efforts on customer product development.
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XEDAR CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (Continued)
Selling, General and Administrative Expense: Selling and general and
administrative expenses increased by $41,935 in 1995 as compared to the
three quarters ended September 30, l994 due primarily to an increase in
marketing expenses as well as some increase in general and
administrative salaries.
LIQUIDITY AND CAPITAL RESOURCES
The Company finances its activities from cash reserves and operations.
At September 30, 1995 the Company's working capital was $1,540,162.
No bank financing has been used since 1982.
The Company's liquidity position is necessary for production financing,
the expansion of the CCD camera manufacturing capability and in house
research and development, to remain competitive in its product line,
and to expand into new products for the commercial, scientific and
medical imaging market.
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PART II - OTHER INFORMATION
NOT APPLICABLE
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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.
XEDAR CORPORATION
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(Registrant)
November 12, 1995 Hans R. Bucher, President
Date......................... ...................................
(Hans R. Bucher, President)
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