Xedar Corporation
2500 Central Avenue
Boulder, CO 80301
May 13, 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 March 29, 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 X No
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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 May 15, 1997.
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,
March 29, 1997 1
Condensed Statement of Operations, Three
Months ended March 29, l997 and 1996 2
Condensed Statement of Cash Flows - Three
Months Ended March 29, 1997 and 1996 3
Notes to Condensed Financial Statements 4
Item 2 Management's Discussion and Analysis of financial
Condition and Results of Operations 5
PART II Other Information 7
SIGNATURES 8
PART I - FINANCIAL INFORMATION
XEDAR CORPORATION
CONDENSED BALANCE SHEET
March 29, 1997
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $1,254,636
Accounts receivable 18,126
Interest receivable 12,050
Inventories 87,165
Refundable income taxes 78,041
Prepaid income taxes 14,200
Prepaid expenses 2,933
Total current assets 1,467,151
Long term receivable 166,767
Property and equipment 165,257
Less accumulated depreciation 136,840
28,417
Other assets 14,335
$1,676,670
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable-trade $ 29,393
Accounts payable-related party 3,950
Accrued liabilities
Payroll and commissions 16,942
Vacation 36,348
Payroll and other taxes 2,537
Advance billings 25,000
Total current liabilities $ 114,170
Stockholders' equity
Common stock 1,617,617
Additional paid in capital 40
Accumulated deficit (55,157)
Total stockholders' equity 1,562,500
$1,676,670
==========
The accompanying notes are an integral part of these condensed financial
statements.
-1-
XEDAR CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31 and March 29
---------------------
1996 1997
Sales $173,658 $ 85,901
Cost of Sales 133,935 91,315
Gross Profit (loss) 39,723 (5,414)
Research and Development costs 27,567 -
Selling, general and
administrative expenses 66,167 85,901
93,734 85,901
Operating loss (54,011) (91,315)
Other income 13,741 17,524
Loss before income
taxes $(40,270) $(73,791)
Provision for income tax
expense (benefit) 11,000 14,200
Net loss $(29,270) $(59,591)
========= ==========
Weighted average shares
outstanding 1,837,224 1,837,224
Net loss per
common share $ ( .02) $ ( .03)
======== ========
The accompanying notes are an integral part of these condensed financial
statements.
-2-
XEDAR CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
Three Months Ended
March 31 and March 29
------------------------
1996 1997
---------- ---------
Net loss $ (29,270) $( 59,591)
Adjustments to reconcile cash
net income(loss)to net cash provided
(used) by operating activities
Depreciation of property and
equipment 5,051 3,813
(Increase) decrease in assets
Accounts receivable 29,958 243,050
Interest receivable (13,744) ( 4,972)
Inventories (11,765) (33,136)
Prepaid income taxes - (14,200)
Prepaid expenses ( 1,131) 971
Increase (decrease) in liabilities
Accounts payable-trade (14,317) 4,629)
Accounts payable-related party ( 1,000)
Accrued payroll 8,692 8,671
Accrued vacation 3,006 5,346
Payroll and other taxes ( 7,050) 1,037
Advance billings (13,420)
Income taxes payable (11,002)
----------- ----------
Net cash provided (used) by (41,572) 141,198
operating activities ----------- ----------
Cash flows used in investing activities
capital expenditures (5,470) ( 7,002)
Patents ( 526) 6,282
Long term receivable-related party 4,747 3,861
--------- ----------
Net cash used by investing activities (1,249) 3,141
Net increase (decrease) in cash
and cash equivalents (42,821) 144,339
Cash and cash equivalents at
beginning of three month period 1,209,296 1,110,297
--------- ---------
Cash and cash equivalents at
end of three month period $1,166,475 $1,254,636
========== ==========
The accompanying notes are an integral part of these condensed financial
statements.
-3-
XEDAR CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
March 29, 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 March 29, 1997 and the results of
operations for the three month periods ended March 29, 1997 and March 31,
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 March 29, 1997 inventories consisted of:
Raw Materials $ 8,303
Work in process 78,862
Finished goods -
----------
Total $ 87,165
=========
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 (Loss)
Sales by product line for the first quarter 1996 and 1997 were:
(Amounts in $000)
Increase
1996 1997 (Decrease)
Commercial products $ 1 $ 22 $ 21
Design and development contracts 52 57 5
Single customer production programs 121 7 (114)
---- ---- -----
Totals $174 $ 86 $( 88)
==== ==== ======
Commercial product sales for the first quarter 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
quarter 1997 as compared to 1996. A new engineering contract and additional
work on an existing contract were obtained to be completed during 1997.
Single customer production program sales decreased in the first quarter of
1997 as compared to 1996 by $114,000. The decline is primarily due to a
cancellation of a production contract. No new contract has been obtained in
the first quarter 1997.
While 1996 gross profit was at 22%, 1997 cost of sales exceeded sales caused
by the significant reduction in single customer production program sales and
by underabsorption of overhead costs.
Research and Development
There were no research and development expenses in the first quarter 1997
in order for management to focus on marketing and production issues.
-5-
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 $19,700 from 1996. This increase
included a $7,000 write-off of legal and filing fees for an unsuccessful
patent application and an $11,000 increase in marketing expenses. The
Company has increased marketing efforts to aggressively pursue new design
and long-term production contracts.
LIQUIDITY AND CAPITAL RESOURCES
The Company finances its activities from cash reserves and operations.
At March 31, 1996 the Company's working capital was $1,352,981.
The Company's liquidity position is necessary for increased marketing and
sales efforts, 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
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(Registrant)
May, 13, 1997 Hans R Bucher
Date......................... .............................
(Hans R. Bucher, President)
-8-
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