Xedar Corporation
2500 Central Avenue
Boulder, CO 80301
November 14, 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 September 27, 1997
_________________________________
( ) TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE EXCHANGE ACT
For the transition period from to
----------------------------------
Commission File Number 0-8356
-----------------------------------------------
XEDAR CORPORATION
- ----------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Colorado 84-0684753
- -------------------------------- ------------------------------------
(State or other jurisdiction of
incorporation or organization) (IRS Employer Identification No.)
2500 Central Avenue, Boulder, CO 80301
- ----------------------------------------------------------------------
(Address of principal executive offices)
(303) 443-6441
---------------------------------------------------------------------
(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, 1997.
Transitional Small Business Disclosure Format (check one):
Yes No X
------ ------
XEDAR CORPORATION
INDEX
Page No.
PART I Financial Information
Item 1 Financial Statements
Condensed Balance Sheet,
September 27, 1997 1
Condensed Statement of Operations, Nine
Months ended September 27, 1997 and 2
September 28, 1996
Condensed Statement of Cash Flows - Nine
Months Ended September 27, 1997 and 3
September 28, 1996
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 27, 1997
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $1,018,019
Trade accounts and notes receivable 248,551
Interest receivable 8,000
Inventories 105,252
Refundable Income Taxes 3,206
Prepaid income taxes 43,000
Prepaid expenses 434
Total current assets 1,426,462
Long term receivable 164,175
Property and equipment 170,723
Less accumulated depreciation 145,012
25,711
Other assets 15,435
$1,631,783
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable-trade $ 1,340
Accounts payable - related party 3,950
Accrued liabilities
Accrued payroll and commissions 16,903
Accrued vacation 35,885
Payroll and other taxes 1,233
__________
Total current liabilities $ 59,311
Stockholders' equity
Common stock 1,617,617
Additional paid in capital 40
Accumulated deficit (45,185)
Total stockholders' equity 1,572,472
$1,631,783
==========
The accompanying notes are an integral part of these condensed
financial statements.
-1-
XEDAR CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Nine Months Ended Three Months Ended
September 28, 1996 September 28, 1996
September 27, 1997 September 27, 1997
------------------ -------------------
1996 1997 1996 1997
Sales $ 523,024 $509,223 $168,609 $281,369
Cost of Sales 425,785 434,649 158,738 220,382
Gross Profit 97,239 74,574 9,871 60,987
Research and Development costs 160,930 19,760 69,960 18,122
Selling, general and
administrative expenses 165,834 202,817 45,696 57,349
326,764 222,577 115,656 75,471
Operating loss (229,525)(148,003) (105,785) ( 14,484)
Other income 42,060 38,448 13,996 16,970
Income (loss) before
income taxes $(187,465)$(109,555) $(91,789) $ 2,486
Provision for income tax
expense (benefit) (69,000) (59,936) ( 43,000) (28,936)
Net income (loss) $(118,465) $(49,619) $(48,789) $(31,422)
========== ========= ========= =========
Weighted average shares
outstanding 1,837,224 1,837,224 1,837,224 1,837,224
Net income (loss) per
common share $(.06) $(.03) $(.03) $ .02
====== ====== ====== =====
The accompanying notes are an integral part of these condensed
financial statements.
-2-
XEDAR CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
Nine Months Ended
September 27,
------------------------
1996 1997
---------- ---------
Net Loss $(118,465) $( 49,619)
Adjustments to reconcile cash
net income (loss) to net cash
provided (used) by operating
activities
Depreciation of property and
equipment 13,763 11,985
(Increase) decrease in assets
Accounts receivable 66,219 12,625
Interest receivable ( 922)
Inventories 141,629 ( 51,223)
Refundable Income Taxes ( 78,041) 74,831
Prepaid Income Taxes ( 43,000)
Prepaid expenses 3,473
Other assets and long term receivable 9,520 -
Increase (decrease) in liabilities
Accounts payable - trade ( 23,422)
Accounts payable - related party ( 1,000)
Accrued payroll 8,632
Accrued vacation 4,883
Payroll and other taxes ( 268)
Income taxes payable
Other liabilities 1,408
Advance billings ( 38,420)
---------- ---------
Net cash provided by (used) by 36,033 ( 91,445)
operating activities ---------- ---------
Cash flows used in investing
activities-capital expenditures ( 5,470) ( 12,468)
Patents ( 1,421) 5,182
Long term receivable-related party 6,453
--------- ----------
Net cash used by investing
activities ( 6,891) ( 833)
Net increase (decrease) in cash
and cash equivalents 29,142 ( 92,278)
Cash and cash equivalents at
beginning of nine month period 1,209,296 1,110,297
--------- ----------
Cash and cash equivalents at
end of nine month period $1,238,438 $1,018,019
=========== ===========
The accompanying notes are an integral part of these condensed financial
statements.
-3-
XEDAR CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
September 27, 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 September 27,
1997 and the results of operations for the nine month periods ended
September 27, 1997 and September 28, 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 September 27, 1997 inventories consisted of:
Raw Materials $ 6,303
Work in process 98,949
Finished goods -
--------
TOTAL $105,252
========
NOTE 3: EARNINGS (LOSS) PER COMMON SHARE
Earnings (loss) per common share was computed by dividing the net
earnings (loss) by the weighted average number of shares outstanding for
the period. Stock options have not been considered in the computation
since their inclusion would have an immaterial effect or would be anti-
dilutive.
-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 nine months of l996 and 1997 were:
(Amounts in $000)
Increase
1996 1997 (Decrease)
Commercial products $ 30 $ 30 $ 0
Design and development contracts 322 468 146
Single customer production programs 171 11 (160)
---- ---- -----
Totals $523 $509 $( 14)
==== ==== ======
Commercial product sales for the three quarters ended September 27,
1997 remained the same as compared to 1996.
Design and development contract sales increase by $146,000 for the three
quarters ended September 27, 1997 as compared to 1996. The increase
includes a contract settlement for $150,000 for the third quarter 1997.
Single customer production program sales decreased in the three quarters
ended September 27, 1997, as compared to 1996 by $160,000 due to a
cancellation of a production contract and not acquiring new production
contracts.
Gross profit decreased from 19% in 1996 to 15% in 1997. This decline
was caused by a slightly reduced sales volume and a lower absorption of
overhead.
Research and Development
Research and development expenses were $19,760 in the three quarters
ended September 27, 1997, as compared to $160,930 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 $36,983 in 1997 as compared to the
three quarters ended September 28, 1996. This increase included a write
off of legal and filing fees for an unsuccessful patent application and
an increase in marketing expenses.
Income Tax Benefit
The income tax benefit in the third quarter 1997 includes the receipt of
income tax refunds of $17,000 greater than previously accrued. It also
includes a $13,000 adjustment to an expected benefit for a current net
operating loss carryback.
-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 September 27, 1997 the Company's working capital was $1,367,151.
The Company's liquidity position is necessary to maintain the Company's
CCD camera development and manufacturing efforts, to remain competitive
in its product line and to expand into new products for the industrial,
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 l0KSB, 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)
November 14, 1997 Hans R. Bucher
Date......................... ...................................
(Hans R. Bucher, President)
-8-
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-29-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-27-1997
<CASH> 1018019
<SECURITIES> 0
<RECEIVABLES> 256551
<ALLOWANCES> 46640
<INVENTORY> 105252
<CURRENT-ASSETS> 1426462
<PP&E> 170723
<DEPRECIATION> 145012
<TOTAL-ASSETS> 1631783
<CURRENT-LIABILITIES> 59311
<BONDS> 0
0
40
<COMMON> 1617617
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1572472
<SALES> 509223
<TOTAL-REVENUES> 509223
<CGS> 434649
<TOTAL-COSTS> 434649
<OTHER-EXPENSES> 222577
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 109555
<INCOME-TAX> 59936
<INCOME-CONTINUING> 49619
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 49619
<EPS-PRIMARY> .06
<EPS-DILUTED> .03
</TABLE>
