Xedar Corporation
2500 Central Avenue
Boulder, CO 80301
August 12, 1996
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, 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 June 30, 1996
_________________________________
( ) 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 No
X
----- -----
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 August 12, l996.
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,
June 30, 1996 1
Condensed Statement of Operations, Six
Months ended June 30, l996 and 1995 2
Condensed Statement of Cash Flows - Six
Months Ended June 30, 1996 and 1995 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
June 30, 1996
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $1,149,653
Accounts receivable 128,147
Inventories 233,462
Prepaid income taxes 35,041
Prepaid expenses 2,346
Total current assets 1,548,649
Long term receivable 173,016
Property and equipment 158,255
Less accumulated depreciation 124,315
33,940
Other assets 21,004
$1,776,609
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 16,408
Accrued liabilities
Accrued payroll and commissions 8,245
Accrued vacation 36,935
Other current liabilities 804
-----------
Total current liabilities $ 62,392
Stockholders' equity
Common stock 1,617,617
Additional paid in capital 40
Accumulated earnings 96,560
Total stockholders' equity 1,714,217
$1,776,609
==========
The accompanying notes are an integral part of these condensed
financial statements.
-1-
XEDAR CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Six Months Ended Three Months Ended
June 30 June 30
---------------- ------------------
1995 1996 1995 1996
Sales $585,521 $354,415 $409,086 $180,757
Cost of Sales 310,388 267,047 225,585 133,112
Gross Profit 275,133 87,368 183,501 47,645
Research and Development costs 21,000 90,970 21,000 63,403
Selling, general and
administrative expenses 115,407 120,138 49,913 53,971
136,407 211,108 70,913 117,374
Operating income (loss) 138,726 (123,740) 112,588 (69,729)
Other income 18,619 28,064 4,303 14,323
Income (loss) before income
taxes $157,345 ($95,676) $116,891 $(55,406)
Provision for income tax 43,140 (26,000) 34,140 (15,000)
expense (benefit)
Net income (loss) $114,205 $(69,676) $ 82,751 $(40,406)
======== ======== ======== ========
Weighted average shares
outstanding 1,837,224 1,837,224 1,837,224 1,837,224
Net income (loss) per
common share $ .06 $( .04) $ .05 $( .02)
====== ======= ======= =======
The accompanying notes are an integral part of these condensed
financial statements.
-2-
XEDAR CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
Six Months Ended
June 30,
------------------------
1995 1996
---------- ---------
Net Income (loss) $ 114,205 $( 69,676)
Adjustments to reconcile cash
net income (loss) to net cash
provided (used) by operating
activities
Depreciation of property and
equipment 5,496 9,407
(Increase) decrease in assets
Accounts receivable (131,306) 29,268
Inventories ( 79,181) 49,725
Refundable income taxes 19,399 -
Prepaid income taxes - ( 35,041)
Other assets and long term
receivable 10,744 6,568
Increase (decrease) in liabilities
Accounts payable ( 46,810) ( 25,774)
Income taxes payable - ( 15,961)
Other liabilities ( 12,409) ( 2,166)
--------- ---------
Net cash provided by (used in) (119,862) ( 53,650)
operating activities --------- ---------
Cash flows used in investing
activities-capital expenditures - ( 5,470)
Capitalization of patents ( 523)
--------- ---------
Net cash used by investing activities ( 5,993)
Net increase (decrease) in cash
and cash equivalents (119,862) ( 59,643)
Cash and cash equivalents at
beginning of six month period 920,382 1,209,296
--------- ---------
Cash and cash equivalents at
end of six month period $800,520 $1,149,653
======== ==========
The accompanying notes are an integral part of these condensed financial
statements.
-3-
XEDAR CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
June 30, 1996
(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 June 30, 1996
and the results of operations for the six month periods ended June 30,
1996 and 1995. 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, 1995, previously filed with the
Securities and Exchange Commission.
NOTE 2: INVENTORIES
At June 30, 1996 inventories consisted of:
Raw Materials $ 8,449
Work in process 225,013
Finished goods -
----------
TOTAL $ 233,462
==========
NOTE 3: INCOME (LOSS) PER COMMON SHARE
Income (loss) per common share amounts were computed by dividing the net
income (loss) by weighted average number of shares outstanding for the
period. Eligible stock options have not been considered in the
computation since their inclusion would have an anti-dilutive effect for
loss per share computations and not have a material dilutive effect for
income per share computations.
-4-
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 six months of l995 and 1996 were:
(Amounts in $000)
Increase
1995 1996 (Decrease)
Commercial products $ 29 $ 3 $( 26)
Design and development contracts 140 188 48
Single customer production programs 417 163 (254)
---- ---- -----
Totals $586 $354 $(232)
==== ==== ======
Commercial product sales for the first half of 1996 decreased by
$26,000 as compared to 1994 due to a lack of demand for infrared
cameras.
Design and development contract sales increased in the first half of
1996 by $48,000 as compared to 1995. This increase is due to a current
contract for special CCD cameras.
Single customer production program sales decreased in the first half of
1996 as compared to 1995 by $254,000 due to a cancellation of a
production contract.
Gross profit decreased from 47% in 1995 to 25% in 1996 for a total
decline of $188,000. This decline was caused by: $133,000 from reduced
sales volume; $27,000 from lower profit margins; and $28,000 from a
lower absorption of overhead.
Research and Development
Research and development expenses were $90,970 in the first half of
1996 as compared to $21,000 in 1995. The funds expended were used to
develop prototype CCD cameras for various applications.
In the first half of 1996 the Company has focused its efforts on
customer product development.
Selling, General and Administrative Expense: Selling and general and
administrative expenses increased by $4,731 in 1996 as compared to the
first half of 1995 due to higher marketing expenses.
-5-
XEDAR CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (Continued)
LIQUIDITY AND CAPITAL RESOURCES
The Company finances its activities from cash reserves and operations.
At June 30, 1996 the Company's working capital was $1,486,257.
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 future 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.
-6-
PART II - OTHER INFORMATION
NOT APPLICABLE
-7-
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
- -----------------------------
(Registrant)
August 12, 1996 Hans R. Bucher
Date......................... ...................................
(Hans R. Bucher, President)
-8-
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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