Xedar Corporation
2500 Central Avenue
Boulder, CO 80301
August 11, 1997
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 June 28, 1997
_________________________________
( ) 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
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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, l997.
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 28, 1997 1
Condensed Statement of Operations, Six
Months ended June 28, l997 and June 30, 1996 2
Condensed Statement of Cash Flows - Six
Months Ended June 28, 1997 and June 30, 1996 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 28, 1997
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $1,038,237
Accounts receivable 80,640
Interest receivable 9,200
Inventories 180,532
Refundable Income Taxes 78,037
Prepaid income taxes 31,000
Prepaid expenses 1,739
Total current assets 1,419,385
Long term receivable 165,471
Property and equipment 170,723
Less accumulated depreciation 140,926
29,797
Other assets 14,335
$1,628,988
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable-trade $ 36,980
Accounts payable-related party 3,950
Accrued liabilities
Payroll and commissions 8,496
Vacation 36,161
Payroll and other taxes 2,351
-----------
Total current liabilities $ 87,938
Stockholders' equity
Common stock 1,617,617
Additional paid in capital 40
Accumulated deficit (76,607)
Total stockholders' equity 1,541,050
$1,628,988
==========
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 and June 28 June 30 and June 28
---------------- ------------------
1996 1997 1996 1997
Sales $354,415 $227,854 $180,757 $141,953
Cost of Sales 267,047 214,267 133,112 122,952
Gross Profit 87,368 13,587 47,645 19,001
Research and Development costs 90,970 1,638 63,403 1,638
Selling, general and
administrative expenses 120,138 145,468 53,971 59,567
211,108 147,106 117,374 61,205
Operating loss (123,740)(133,519) (69,729) (42,204)
Other income 28,064 21,478 14,323 3,954
Loss before income
taxes $(95,676)($112,041) $(55,406)$(38,250)
Provision for income tax (26,000) (31,000) (15,000) (16,800)
expense (benefit)
Net loss $(69,676) $(81,041) $(40,406)$(21,450)
======== ========= ======== ========
Weighted average shares
outstanding 1,837,224 1,837,224 1,837,224 1,837,224
Net loss per common
share $( .04) $( .04) $( .02) $( .01)
====== ======= ======= =======
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 and June 28
------------------------
1996 1997
---------- ---------
Net Loss $( 69,676) $( 81,041)
Adjustments to reconcile cash
net income (loss) to net cash
provided (used) by operating
activities
Depreciation of property and
equipment 9,407 7,899
(Increase) decrease in assets
Accounts receivable 29,268 180,536
Interest receivable ( 2,122)
Inventories 49,725 (126,503)
Prepaid income taxes (35,041) ( 31,000)
Prepaid expenses 2,166
Other assets and long term
receivable 6,568 -
Increase (decrease) in liabilities
Accounts payable-trade ( 25,774) 12,218
Accounts payable-related party - ( 1,000)
Accrued payroll 225
Accrued vacation 5,159
Payroll and other taxes 851
Income taxes payable ( 15,961) -
Other liabilities ( 2,166) -
Advance billings ( 38,420)
--------- ---------
Net cash provided by (used in) ( 53,650) ( 71,032)
operating activities --------- ---------
Cash flows used in investing
activities-capital expenditures ( 5,470) ( 12,468)
Patents ( 523) 6,283
Long term receivable-related party 5,157
--------- ---------
Net cash used by investing activities ( 5,993) ( 1,028)
Net increase (decrease) in cash
and cash equivalents ( 59,643) ( 72,060)
Cash and cash equivalents at
beginning of six month period 1,209,296 1,110,297
---------- ----------
Cash and cash equivalents at
end of six month period $1,149,653 $1,038,237
========== ==========
The accompanying notes are an integral part of these condensed financial
statements.
-3-
XEDAR CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
June 28, 1997
(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 28, 1997
and the results of operations for the six month periods ended June 28,
1997 and June 30, 1996. 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 28, 1996, previously filed with the
Securities and Exchange Commission.
NOTE 2: INVENTORIES
At June 28, 1997 inventories consisted of:
Raw Materials $ 6,303
Work in process 174,229
Finished goods -
----------
TOTAL $ 180,532
==========
NOTE 3: LOSS PER COMMON SHARE
Loss per common share amounts were computed by dividing the net 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.
-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 l996 and 1997 were:
(Amounts in $000)
Increase
1996 1997 (Decrease)
Commercial products $ 3 $ 24 $ 21
Design and development contracts 188 192 4
Single customer production programs 163 12 (151)
---- ---- -----
Totals $354 $228 $(126)
==== ==== ======
Commercial product sales for the first half of 1997 increased by
$21,000 as compared to 1996 due to a sale of an infrared camera.
Design and development contract sales stayed at the same level in the
first half of 1997 as compared to 1996.
Single customer production program sales decreased in the first half of
1997 as compared to 1996 by $151,000 due to a cancellation of a
production contract and not acquiring a new production contract.
Gross profit decreased from 25% in 1996 to 6% in 1997. This decline was
caused by: reduced sales volume and lower absorption of overhead.
Research and Development
Research and development expenses were $1,638 in the first half of 1997
as compared to $90,970 in 1996. The Company focused its efforts on
marketing and production issues.
Selling, General and Administrative Expense: Selling and general and
administrative expenses increased by $25,330 in 1997 as compared to the
first half of 1996. This increase included a write off of legal and
filing fees for an unsuccessful patent application and an increase in
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 current activities from cash reserves.
At June 28, 1997 the Company's working capital was $1,331,447.
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.
FORWARD-LOOKING STATEMENTS
Except for the historical information contained herein, the matters set
forth in this 10QSB are forward-looking statements within the meaning of
the "safe harbor" provisions of the Private Securities Litigation Reform
Act of 1995. These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially. These
risks are detailed from time to time in the Company's periodic reports
filed with the Securities and Exchange Commission, including the
Company's Annual Report on Form 10KSB, Quarterly Reports on Form 10QSB
and other periodic filings. These forward-looking statements speak only
as of the date hereof. The Company disclaims any intent or obligation
to update these forward-looking statements.
-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 11, 1997 Hans R. Bucher
Date......................... ...................................
(Hans R. Bucher, President)
-8-
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