Xedar Corporation
2500 Central Avenue
Boulder, CO 80301
May 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 March 28, 1998
_________________________________
( ) 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 May 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,
March 28, 1998 1
Condensed Statements of Operations, Three
Months ended March 29, l997 and March 28,
1998 2
Condensed Statements of Cash Flows - Three
Months Ended March 29, 1997 and March 28,
1998 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 28, 1998
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $1,017,895
Trade acccounts receivable, net 17,998
Note receivable 24,216
Inventories 33,331
Prepaid expenses 3,051
Total current assets 1,096,491
Long term receivable from related party 158,742
Property and equipment, at cost 170,723
Less accumulated depreciation 152,128
18,595
Patents, net 14,476
$1,288,304
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable-trade $ 2,783
Accounts payable-related party 4,050
Accrued liabilities
Vacation 35,822
Payroll and commissions 13,728
Payroll and other taxes 3,386
Total current liabilities 59,769
Stockholders' equity
Common stock 1,617,617
Additional paid-in capital 40
Accumulated deficit (389,122)
Total stockholders' equity 1,228,535
$1,288,304
==========
The accompanying notes are an integral part of these condensed financial
statements.
-1-
XEDAR CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 29 and March 28
1997 1998
Sales $ 85,901 $ 5,940
Cost of sales 91,315 56,369
Gross profit (loss) (5,414) (50,429)
Research and development costs - 42,063
Selling, general and
administrative expenses 85,901 68,963
85,901 111,026
Operating loss (91,315) (161,455)
Other income 17,524 9,699
Loss before income
taxes (73,791) (151,756)
Provision for income tax
expense (benefit) (14,200) -
Net loss $(59,591) $(151,756)
========= ==========
Weighted average shares
outstanding 1,837,224 1,837,224
Basic and diluted loss per
common share $( .03) $ ( .08)
======== ========
The accompanying notes are an integral part of these condensed financial
statements.
-2-
XEDAR CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
Three Months Ended
March 29 and March 28
1997 1998
Net loss $( 59,591) $(151,756)
Adjustments to reconcile
net loss to net cash provided
(used) by operating activities
Depreciation of property and
equipment 3,813 3,030
(Increase) decrease in assets:
Trade accounts receivable 243,050 ( 5,303)
Note receivable - 70,784
Interest receivable ( 4,972) 4,000
Inventories (33,136) ( 728)
Prepaid income taxes (14,200) -
Refundable income taxes - 3,206
Prepaid expenses 971 1,019
Increase (decrease) in liabilities:
Accounts payable-trade 4,629 (253)
Accounts payable-related party ( 1,000) ( 2,243)
Accrued vacation 5,346 795
Accrued payroll 8,671 5,188
Payroll and other taxes 1,037 1,704
Advance billings (13,420) -
Net cash provided (used) by 141,198 (70,557)
operating activities --------- ----------
Cash flows provided by investing activities
Capital expenditures (7,002) -
Patents 6,282 -
Long term receivable-related party 3,861 4,137
--------- -----------
Net cash provided by investing
activities 3,141 4,137
Net increase (decrease) in cash
and cash equivalents 144,339 ( 66,420)
Cash and cash equivalents at
beginning of three month period 1,110,297 1,084,315
---------- ---------
Cash and cash equivalents at
end of three month period $1,254,636 $1,017,895
========== ==========
The accompanying notes are an integral part of these condensed financial
statements.
-3-
XEDAR CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
March 28, 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 March 28, 1998 and the results of
operations for the three month periods ended March 28, 1998 and March 29,
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 March 28, 1998 inventories consisted of:
Raw materials $ 7,436
Work in process 25,895
Finished goods -
---------
Total $ 33,331
=========
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 three month periods ended March 28, 1998 and March 29, 1997.
-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 1997 and 1998 were:
(Amounts in $000)
Increase
1997 1998 (Decrease)
Commercial products $ 22 $ - $( 22)
Design and development contracts 57 6 ( 51)
Single customer production programs 7 - ( 7)
---- ---- -----
Totals $ 86 $ 6 $( 80)
==== ==== ======
Xedar product sales decreased by $22,000 in the first quarter of 1998 as
compared to 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 $51,000. The Company is
pursuing several contract opportunities with various potential customers,
but to date has not been able to turn these opportunities into contracts.
This situation is reflected in the lack of sales of design and development
contracts and single customer production programs.
The gross profit for the first quarter 1998 was negative due to reduced
sales volume and underabsorption of overhead costs.
Research and Development
A total of $42,000 were expended during the first quarter 1998. These funds
were primarily used to evaluate high speed amplifiers for various
applications and to develop camera control software.
-5-
XEDAR CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (Continued)
Selling, General and Administrative Expenses: Selling, general and
administrative expenses decreased by $17,000 in the first quarter 1998 as
compared to the first quarter of 1997. This decrease is primarily due to
lower marketing and administrative wages.
LIQUIDITY AND CAPITAL RESOURCES
The Company finances its activities from cash reserves and operations.
At March 28, 1998 the Company's working capital was $1,037,000.
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 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)
May 12, 1998 Hans R. Bucher
Date......................... ...................................
(Hans R. Bucher, President)
-8-
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-26-1998
<PERIOD-START> DEC-28-1997
<PERIOD-END> MAR-28-1998
<CASH> 1017895
<SECURITIES> 0
<RECEIVABLES> 42214
<ALLOWANCES> 3051
<INVENTORY> 33331
<CURRENT-ASSETS> 1096491
<PP&E> 170723
<DEPRECIATION> 152128
<TOTAL-ASSETS> 1288304
<CURRENT-LIABILITIES> 59769
<BONDS> 0
0
40
<COMMON> 1617617
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1228535
<SALES> 5940
<TOTAL-REVENUES> 5940
<CGS> 56369
<TOTAL-COSTS> 56369
<OTHER-EXPENSES> 111026
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 151756
<INCOME-TAX> 0
<INCOME-CONTINUING> 151756
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 151756
<EPS-PRIMARY> .08
<EPS-DILUTED> .08
</TABLE>
