Xedar Corporation
2500 Central Avenue
Boulder, CO 80301
May 8, 2000
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 25, 2000
_________________________________
( ) 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 9, 2000.
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 25, 1999 and March 25, 2000 1
Condensed Statements of Operations, Three
Months ended March 27, 1999 and March 25,
2000 2
Condensed Statements of Cash Flows - Three
Months Ended March 27, 1999 and March 25,
2000 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 25, 1999 and March 25, 2000
(Unaudited)
1999 2000
ASSETS
Current assets
Cash and cash equivalents $ 377,008 421,933
Trade accounts receivable, net 116,301 111,217
Inventories 153,204 139,440
Prepaid expenses 2,007 1,040
Total current assets 648,520 673,630
Long term receivable from related party 145,494 140,754
Property and equipment, at cost 141,307 141,307
Less accumulated depreciation 127,666 129,226
13,641 12,081
Patents, net 12,558 12,558
$ 820,213 839,023
========= ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable-trade $ 24,533 17,384
Accounts payable-related party 4,170
Accrued liabilities
Vacation 28,869 31,383
Payroll and commissions 6,270 12,467
Payroll and other taxes 2,637 2,518
Unearned revenue - 50,586
Total current liabilities 62,309 118,508
Stockholders' equity
Common stock 1,617,617 1,617,617
Additional paid-in capital 40 40
Accumulated deficit (859,753) (897,142)
Total stockholders' equity 757,904 720,515
$ 820,213 839,023
========= ========
The accompanying notes are an integral part of these condensed financial
statements.
-1-
XEDAR CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 27 and March 25
1999 2000
Sales $ 24,890 136,910
Cost of sales 72,199 138,104
Gross loss (47,309) ( 1,194)
Research and development costs - -
Selling, general and
administrative expenses 41,192 40,021
41,192 40,021
Operating loss (88,501) (41,215)
Other income 8,215 3,826
Net loss $(80,286) (37,389)
========= ========
Weighted average shares
outstanding 1,837,224 1,837,224
Basic and diluted loss per
common share $( .04) ( .02)
======== ======
The accompanying notes are an integral part of these condensed financial
statements.
-2-
XEDAR CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
Three Months Ended
March 27 and March 25
1999 2000
Net loss $(80,286) ( 37,389)
Adjustments to reconcile
net loss to net cash used by
operating activities
Depreciation of property and
equipment 2,184 1,560
(Increase) decrease in assets:
Trade accounts receivable 43,826 5,084
Interest receivable 2,000 -
Inventories (26,091) 13,764
Prepaid expenses 1,911 967
Increase (decrease) in liabilities:
Accounts payable-trade 4,910 (7,149)
Accounts payable-related party - 4,170
Accrued vacation (8,692) 2,514
Accrued payroll and commissions 5,404 6,197
Payroll and other taxes 408 ( 119)
Unearned revenue - 50,586
Net cash provided (used) by (54,426) 40,185
operating activities
Cash flows provided by investing
activities
Long term receivable-related party 4,428 4,740
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Net cash provided by investing
activities 4,428 4,740
Net increase (decrease) in cash and
cash equivalents (49,998) 44,925
Cash and cash equivalents at
beginning of three month period 828,445 377,008
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Cash and cash equivalents at
end of three month period $ 778,447 421,933
========== =========
The accompanying notes are an integral part of these condensed financial
statements.
-3-
XEDAR CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
March 25, 2000
(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 25, 2000 and the results of
operations for the three month periods ended March 25, 2000 and March 27,
1999. 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 25,
1999, previously filed with the Securities and Exchange Commission.
NOTE 2: INVENTORIES
At March 25, 2000 inventories consisted of:
Raw materials $ 4,345
Work in process 135,095
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Total $ 139,440
=========
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 25, 2000 and March 27, 1999.
-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 1999 and 2000 were:
(Amounts in $000)
Increase
1999 2000 (Decrease)
Commercial products $ 1 $ - $( 1)
Design and development contracts 24 38 14
Single customer production programs - 99 99
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Totals $ 25 $137 $112
==== ==== =====
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 $14,000. The Company is
pursuing several contract opportunities with various potential customers
and has received two contracts for prototypes and delivery of production
units, which started in November 1999.
Single customer production program sales increased by $99,000 and amounted
to 72% of sales due to delivery of production units.
The gross profit for the first quarter 2000 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 quarters
of 2000 and 1999.
-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 stayed at the same level in the first quarter of
2000 as compared to the first quarter of 1999.
LIQUIDITY AND CAPITAL RESOURCES
The Company finances its activities from cash reserves and operations.
At March 25, 2000 the Company's working capital was $555,000.
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
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(Registrant)
May 9, 2000 Hans R. Bucher
Date......................... ...................................
(Hans R. Bucher, President)
-9-
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