Xedar Corporation
2500 Central Avenue
Boulder, CO 80301
August 12, 1998
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 27, 1998
_________________________________
( ) 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
- -------------------------------- ------------------------------------
(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, 1998.
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,
June 27, 1998 1
Condensed Statements of Operations, Six
Months and three months ended June 27, 1998 2
and June 28, 1997
Condensed Statements of Cash Flows - Six
Months and three months ended June 27, 1998 3
and June 28, 1997
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
June 27, 1998
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 926,204
Trade accounts receivable, net 48,878
Interest receivable 3,000
Inventories 32,325
Prepaid expenses 1,743
Total current assets 1,012,150
Long term receivable 157,336
Property and equipment, at cost 172,081
Less accumulated depreciation 141,070
31,011
Patents, net 14,476
$1,214,973
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable-trade $ 24,600
Accounts payable-related party 4,048
Accrued liabilities
Vacation 35,892
Payroll and commissions 6,872
Payroll and other taxes 2,629
-----------
Total current liabilities 74,041
Stockholders' equity
Common stock 1,617,617
Additional paid-in capital 40
Accumulated deficit (476,725)
Total stockholders' equity 1,140,932
$1,214,973
==========
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 28 and June 27 June 28 and June 27
1997 1998 1997 1998
Sales $227,854 $ 37,200 $141,953 $ 31,260
Cost of sales 214,267 132,708 122,952 76,339
Gross profit (loss) 13,587 (95,508) 19,001 (45,079)
Research and development costs 1,638 63,463 1,638 21,400
Selling, general and
administrative expenses 145,468 106,416 59,567 37,453
147,106 169,879 61,205 58,853
Operating loss (133,519)(265,387) (42,204)(103,932)
Other income 21,478 26,028 3,954 16,329
Loss before income
taxes (112,041) (239,359) (38,250) (87,603)
Provision for income tax
expense (benefit) (31,000) - (16,800) -
--------- -------- -------- --------
Net loss $(81,041) $(239,359) $(21,450) $(87,603)
========= ========== ========= =========
Weighted average shares
outstanding 1,837,224 1,837,224 1,837,224 1,837,224
Basic and diluted loss per
common share $( .04) $( .13) $( .01) $( .05)
======= ======= ======= =======
The accompanying notes are an integral part of these condensed
financial statements.
-2-
XEDAR CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended Three Months Ended
June 28 and June 27 June 28 and June 27
------------------- -------------------
1997 1998 1997 1998
------------------- ------------------
Net Loss $(81,041)$(239,359) $( 21,450)$(87,603)
Adjustments to reconcile net loss
to net cash used by operating
activities
Depreciation of property and
equipment 7,899 6,060 4,086 3,030
(Increase) decrease in assets
Trade accounts receivable 180,536 ( 36,183) ( 62,514) (30,880)
Note receivable - 95,000 - 24,216
Interest receivable ( 2,122) 1,000 2,850 ( 3,000)
Inventories (126,503) 278 ( 93,367) 1,006
Prepaid income taxes ( 31,000) - ( 16,800) -
Refundable income taxes - 3,206 - -
Prepaid expenses 2,166 2,326 1,195 1,307
Increase (decrease) in liabilities
Accounts payable-trade 12,218 21,562 7,589 21,815
Accounts payable-related party( 1,000) ( 2,243) - -
Accrued vacation 5,159 865 ( 187) 70
Accrued payroll 225 ( 1,668) ( 8,446) ( 6,856)
Payroll and other taxes 851 947 ( 186) ( 757)
Advance billings ( 38,420) - ( 25,000) -
--------- --------- --------- --------
Net cash used by operating ( 71,032) (148,209) (212,230) (77,652)
activities --------- --------- --------- --------
Cash flows used by investing
activities
Capital expenditures ( 12,468) (15,446) ( 5,465) (15,446)
Patents 6,283 - - -
Long term receivable-related
party 5,157 5,544 1,296 1,407
--------- -------- --------- --------
Net cash used by investing
activities ( 1,028) ( 9,902) ( 4,169) (14,039)
Net decrease in cash and cash
equivalents ( 72,060)(158,111) (216,399) (91,691)
Cash and cash equivalents at
beginning of period 1,110,297 1,084,315 - -
--------- ---------- --------- --------
Cash and cash equivalents at
end of period $1,038,237 $ 926,204 $(216,399) $(91,691)
========== ========= ========== =========
The accompanying notes are an integral part of these condensed financial
statements.
-3-
XEDAR CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
June 27, 1998
(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 27, 1998
and the results of operations for the six months and three months ended
June 27, 1998 and June 28, 1997. 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 27, 1997,
previously filed with the Securities and Exchange Commission.
NOTE 2: INVENTORIES
At June 27, 1998 inventories consisted of:
Raw materials $ 7,436
Work in process 24,889
----------
TOTAL $ 32,325
==========
NOTE 3: BASIC AND DILUTED LOSS PER COMMON SHARE
Basic and diluted loss per common share amounts were computed by
dividing the net loss by the weighted average number of shares
outstanding for the period. No options or warrants with a dilutive
effect were outstanding during the six month periods ended June 27, 1998
and June 28, 1997.
-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 and three months ended
for 1997 and 1998 were:
(Amounts in $000)
Six Months Ended Three Months Ended
June 28 June 27 Increase June 28 June 27 Increase
1997 1998 (Decrease) 1997 1998 (Decrease)
Commercial products $ 24 $ 1 $( 23) $ 2 $ - $( 2)
Design and development
contracts 192 36 (156) 135 31 (104)
Single customer
production programs 12 - ( 12) 5 - ( 5)
----- ---- ------ ----- ----- ------
Totals $ 228 $ 37 $(191) $ 142 $ 31 $(111)
===== ==== ====== ===== ===== ======
Xedar product sales decreased by $23,000 in the six months and three
months ended June 1998 and June 1997. The sales potential for the tube-
based infrared cameras is non-existent and the Company no longer offers
this product. At this time, the Company is not offering any standard
product into the imaging market, but is concentrating on development of
special purpose imaging systems for OEM and scientific applications.
Design and development contract sales decreased by $156,000. The
Company is pursuing several contract opportunities with various
potential customers, but to date has not been able to turn these
opportunities into contracts. Only one small consulting contract has
been obtained. This situation is reflected in the lack of sales of
design and development contracts and single customer production
programs.
The gross profit for the second quarter 1998 was negative due to reduced
sales volume and underabsorption of overhead costs.
Research and Development
A total of $21,000 was expended during the second quarter 1998 or
$63,000 for the six months ended June 27, 1998. These funds were
primarily used to evaluate high speed amplifies for various applications
and to develop camera control software.
Selling, General and Administrative Expenses: Selling, general and
administrative expenses decreased by $22,000 in the second quarter 1998
as compared to the second quarter of 1997 and $39,000 for the six months
ended June 27, 1998 compared to the six months ended June 28, 1997.
This decrease is primarily due to lower marketing and administrative
wages.
-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 27, 1998 the Company's working capital was $938,000.
The Company's liquidity position is necessary for anticipated production
financing, the expansion of the CCD camera manufacturing capability and
future in house research and development, to develop new product lines
and to develop new products for the commercial, scientific and medical
imaging market.
The Company has addressed the Year 2000 issues. The Company has
evaluated its computer systems and concluded that the software being
utilized is not date sensitive and adequately recognizes a four-digit
year. The Company presently believes that the Year 2000 problem will
not pose operational or financial problems for the Company's computer
systems as designed.
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 12, 1998 Hans R. Bucher
Date......................... ...................................
(Hans R. Bucher, President)
-8-
[TYPE] EX-27
[DESCRIPTION] art.5 FDS For 1st Quarter 10-Q
[ARTICLE] 5
[MULTIPLIER] 1
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] DEC-26-1998
[PERIOD-START] DEC-28-1997
[PERIOD-END] JUN-27-1998
[CASH] 926204
[SECURITIES] 0
[RECEIVABLES] 51878
[ALLOWANCES] 1743
[INVENTORY] 32325
[CURRENT-ASSETS] 1012150
<PP+E> 172081
[DEPRECIATION] 141070
[TOTAL-ASSETS] 1214973
<Current Liabilities> 74041
[BONDS] 0
[PREFERRED-MANDATORY] 0
[PREFERRED] 40
[COMMON] 1617617
[OTHER-SE] 0
[TOTAL-LIABILITY-AND-EQUITY] 1140932
[SALES] 37200
[TOTAL-REVENUES] 37200
[CGS] 132708
[TOTAL-COSTS] 132708
<Other Expenses> 169879
[LOSS-PROVISION] 0
[INTEREST-EXPENSE] 0
[INCOME-PRETAX] 239359
[INCOME-TAX] 0
[INCOME-CONTINUING] 239359
[DISCONTINUED] 0
[EXTRAORDINARY] 0
<Charges> 0
[NET-INCOME] 239359
[EPS-PRIMARY] .13
[EPS-DILUTED] .13
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