Xedar Corporation
2500 Central Avenue
Boulder, CO 80301
May 12, 1999
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 27, 1999
_________________________________
( ) 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 12, 1999.
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 Sheets,
December 26, 1998 and March 27, 1999 1
Condensed Statements of Operations, Three
Months ended March 28, l998 and March 27,
1999 2
Condensed Statements of Cash Flows - Three
Months Ended March 28, 1998 and March 27,
1999 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 8
SIGNATURES 9
PART I - FINANCIAL INFORMATION
XEDAR CORPORATION
CONDENSED BALANCE SHEETS
December 26, 1998 and March 27, 1999
(Unaudited)
1998 1999
ASSETS
Current assets
Cash and cash equivalents $ 828,445 778,447
Trade accounts receivable, net 43,826 -
Interest receivable 5,000 3,000
Inventories 33,551 59,642
Prepaid expenses 4,669 2,758
Total current assets 915,491 843,847
Long term receivable from related party 154,521 150,093
Property and equipment, at cost 141,307 141,307
Less accumulated depreciation 118,930 121,114
22,377 20,193
Patents, net 13,517 13,517
$1,105,906 1,027,650
========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable-trade $ 9,281 14,191
Accounts payable-related party 4,048 4,048
Accrued liabilities
Vacation 38,877 30,185
Payroll and commissions 6,960 12,364
Payroll and other taxes 3,039 3,447
Total current liabilities 62,205 64,235
Stockholders' equity
Common stock 1,617,617 1,617,617
Additional paid-in capital 40 40
Accumulated deficit (573,956) (654,242)
Total stockholders' equity 1,043,701 963,415
$1,105,906 1,027,650
========== ==========
The accompanying notes are an integral part of these condensed financial
statements.
-1-
XEDAR CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 28 and March 27
1998 1999
Sales $ 5,940 24,890
Cost of sales 56,369 72,199
Gross loss (50,429) (47,309)
Research and development costs 42,063 -
Selling, general and
administrative expenses 68,963 41,192
111,026 41,192
Operating loss (161,455) (88,501)
Other income 9,699 8,215
Net loss $(151,756) (80,286)
Weighted average shares
outstanding 1,837,224 1,837,224
Basic and diluted loss per
common share $( .08) ( .04)
The accompanying notes are an integral part of these condensed financial
statements.
-2-
XEDAR CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
Three Months Ended
March 28 and March 27
1998 1999
Net loss $(151,756) ( 80,286)
Adjustments to reconcile
net loss to net cash used by
operating activities
Depreciation of property and
equipment 3,030 2,184
(Increase) decrease in assets:
Trade accounts receivable (5,303) 43,826
Note receivable 70,784 -
Interest receivable 4,000 2,000
Inventories (728) (26,091)
Refundable income taxes 3,206 -
Prepaid expenses 1,019 1,911
Increase (decrease) in liabilities:
Accounts payable-trade (253) 4,910
Accounts payable-related party (2,243) -
Accrued vacation 795 (8,692)
Accrued payroll and commissions 5,188 5,404
Payroll and other taxes 1,704 408
Net cash used by operating (70,557) (54,426)
activities
Cash flows provided by investing
activities
Long term receivable-related party 4,137 4,428
Net cash provided by investing
activities 4,137 4,428
Net decrease in cash and cash
equivalents (66,420) (49,998)
Cash and cash equivalents at
beginning of three month period 1,084,315 828,445
Cash and cash equivalents at
end of three month period $1,017,895 778,447
The accompanying notes are an integral part of these condensed financial
statements.
-3-
XEDAR CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
March 27, 1999
(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 27, 1999 and the results of
operations for the three month periods ended March 27, 1999 and March 28,
1998. 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 26,
1998, previously filed with the Securities and Exchange Commission.
NOTE 2: INVENTORIES
At March 27, 1999 inventories consisted of:
Raw materials $ 4,345
Work in process 55,297
Total $ 59,642
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 27, 1999 and March 28, 1998.
-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 quarters 1998 and 1999 were:
(Amounts in $000)
Increase
1998 1999 (Decrease)
Commercial products $ - $ 1 $ 1
Design and development contracts 6 24 18
Totals $ 6 $ 25 $ 19
Xedar product sales were $1,000 in the first quarter 1999 for repairs
only. 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 increased by $18,000. The Company is
pursuing several contract opportunities with various potential customers
and has received a new contract for a small color camera for one proto-
type and delivery of eighty units over a period of twelve months.
The gross profit for the first quarter 1999 was negative due to limited
sales volume and underabsorption of overhead costs.
Research and Development
There were no research and development expenses during the first quarter
1999 as compared to $42,000 in the first quarter 1998. The 1998 funds
were used to evaluate high speed amplifiers for various applications.
-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 $28,000 in the first quarter of 1999
as compared to the first quarter of 1998. This decrease is primarily due to
lower marketing and support costs.
LIQUIDITY AND CAPITAL RESOURCES
The Company finances its activities from cash reserves and operations.
At March 27, 1999 the Company's working capital was $780,000.
The Company's liquidity position is necessary to maintain its ability
to conduct in-house research and development enabling it to compete
in single customer contracts and to develop a commercial product line
in a highly volatile high technology market place.
YEAR 2000 ISSUE
The Company has assessed "Year 2000" issues within each of its
significant computer systems and applications and concluded that the
software being utilized is not date sensitive and adequately recognizes
a four digit year. The Company has not identified any mission critical
systems which are not expected to be compliant or cannot be circum-
vented manually.
The failure to correct a material Year 2000 problem could result in an
interruption in, or failure of, certain normal business activities or
operations. Such failures could materially and adversely affect the
Company's operations, liquidity and financial condition. Due to the
general uncertainty inherent in the Year 2000 problem, resulting in
part from the uncertainty of the Year 2000 readiness of third party
suppliers, the Company is unable to determine at this time whether the
consequences of Year 2000 failures will have a material impact on the
Company's operations, liquidity or financial condition. The Company
has not expended any money to rectify Year 2000 issues and does not
expect to incur any such expenses in the future.
-6-
FORWARD-LOOKING STATEMENTS
Except for the historical information contained herein, the matters set
forth in this 10-QSB 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 10-KSB, Quarterly Reports on Form 10-QSB 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.
-7-
PART II - OTHER INFORMATION
NOT APPLICABLE
-8-
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, 1999 Hans R. Bucher
Date
(Hans R. Bucher, President)
-9-
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