**UNITED
                STATES**
              **SECURITIES
                AND EXCHANGE COMMISSION****Washington,
                D.C. 20549****FORM****10-KSB**x**ANNUAL REPORT UNDER SECTION****13
                OR 15(d) OF THE SECURITIES****EXCHANGE
                ACT OF 1934****For
                the fiscal year ended December 31, 2006****o****TRANSITIONAL REPORT UNDER SECTION****13
                OR 15(d)****OF
                THE SECURITIES EXCHANGE ACT OF 1934****For
                the
                transition period from****to**Commission
                file number**000-08356****XEDAR
                CORPORATION**(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.)**8310
                South Valley Highway, Suite 220**
              **Englewood,
                CO 80112**(Address
                of principal executive offices)**(303)
                377-0033**(Issuer’s
                telephone number)Securities
                registered under Section 12(b) of the Exchange Act:**None**Securities
                registered under Section 12(g) of the Exchange Act:**Common
                Stock, no par value**Check
                whether the issuer is not required to file reports pursuant to Section
                13
                or 15(d) of the Exchange Act.oCheck
                whether the issuer: (1) filed all reports required to be filed by
                Section
                13 or 15(d) of the Securities Exchange Act during past 12 months,
                and (2)
                has been subject to such filing requirements for the past 90 days.
                YesxNooCheck
                if there is no disclosure of delinquent filers in response to Item
                405 of
                Regulation S-B contained in this form, and no disclosure will be
                contained, to the best of registrant’s knowledge, in definitive proxy or
                information statements incorporated by reference in Part III of this
                Form
                10-KSB or any amendment to this Form 10-KSB.xIndicate
                by check mark whether the registrant is a shell company (as defined
                in
                Rule 12b-2 of the Exchange Act). YesoNoxState
                the issuer’s revenues for its most recent fiscal year:
                $6,237,339As
                of January 31, 2007, there were 19,590,518 shares of the issuer’s no par
                value common stock outstanding and the aggregate market value of
                the
                common stock (based upon the average bid and asked prices on such
                date) of
                the issuer held by non-affiliates was approximately
                $28,351,497.Transitional
                Small Business Disclosure Format. YesoNoxDOCUMENTS
                INCORPORATED BY REFERENCEThe
                information required by Part III of this report, to the extent not
                set forth herein, is incorporated by reference from the registrant’s
                definitive proxy statement relating to the annual meeting of stockholders
                anticipated to be held on April 24, 2007, which definitive proxy
                statement
                will be filed with the Securities and Exchange Commission within
                120 days after the end of the fiscal year to which this report
                relates.

















**A
      NOTE ABOUT FORWARD-LOOKING STATEMENTS**


The
      statements included in this report, other than statements of historical fact,
      are forward-looking statements. Forward-looking statements generally can be
      identified by the use of forward-looking terminology such as “may,” “will,”
“expect,” “intend,” “estimate,” “anticipate,” “plan,” “seek,” or “believe.”
These forward-looking statements, which are subject to risks, uncertainties,
      and
      assumptions, may include projections of our future financial performance based
      on our growth strategies and anticipated trends in our business. These
      statements are only predictions based on our current expectations about future
      events. There are important factors that could cause our actual results, level
      of activity, performance, or achievements to differ materially from the results,
      level of activity, performance, or achievements expressed or implied by the
      forward looking statements. In particular, you should consider the risks
      outlined under "Risk Factors." Although we believe the expectations reflected
      in
      the forward-looking statements are reasonable, we cannot guarantee future
      results, level of activity, performance, or achievements. You should not rely
      upon forward-looking statements as predictions of future events. These
      forward-looking statements apply only as of the date of this report; as such,
      they should not be unduly relied upon as circumstances change. Except as
      required by law, we are not obligated, and we undertake no obligation, to
      release publicly any revisions to these forward-looking statements that might
      reflect events or circumstances occurring after the date of this report or
      those
      that might reflect the occurrence of unanticipated events.





**Fiscal
      Year End**


Our
      fiscal year ends on December 31 of each year. Unless otherwise indicated,
      references herein to an individual year means the fiscal year ended December
      31.
      For example, “2006” refers to the fiscal year ended December 31,
      2006.





**Part
      I**





**Item
      1. Description of Business.**




Overview


We
      have
      two primary lines of business.





First,
      we
      obtain federal geographical and land information ownership data from the Bureau
      of Land Management and state and county geographical and land information data
      from various states and counties and convert this information into databases
      that are sold to oil and gas companies, as well as several agencies of the
      federal government, along with browser software that allows users to easily
      access ownership information about specific parcels of land. This service is
      offered both on compact disc and through an Internet site. Nearly all sales
      are
      on an annual or quarterly subscription basis. We also offer production mapping
      services to a number of clients.





Second,
      we provide information technology systems and enterprise assurance and security
      analysis services to various federal government agencies. We use an
      internally-developed systems security analysis tool to improve the efficiency
      of
      our consultants, which allows us to bid more competitively for new
      work.





We
      have
      over 200 commercial and government customers. Approximately 75% of our revenue
      is derived from government customers, which include the Department of State,
      the
      National Park Service, the Internal Revenue Service, the Bureau of Land
      Management, the Bureau of Reclamation, and the U.S. Forest Service. Our
      commercial customers include most of the major domestic petroleum companies
      including: Anadarko Petroleum, BP America, ConocoPhillips, Devon Energy, EnCana,
      Shell, Williams Production, and Yates Petroleum.





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Our
      principal executive offices are located at 8310 South Valley Highway, Suite
      220,
      Englewood, Colorado 80112 and our telephone number is 303-377-0033. We also
      maintain an Internet site at www.xedarinc.com .
      Our
      common stock trades in the Over-the-Counter market (OTC.BB) under the ticker
      symbol “XDRC.OB.”





Company
      History


We
      are a
      Colorado corporation, incorporated in 1974. Since 2003, and prior to December
      31, 2006, we engaged in minimal operations. Effective December 31, 2006, through
      a wholly owned subsidiary formed specifically for that purpose, we merged with
      Premier Data Services, Inc., a Delaware corporation, as reported in our Current
      Report on Form 8-K filed on January 5, 2007. Before the merger there was no
      material relationship between us, our affiliates, and Premier Data Services,
      Inc. Post merger, we conduct the business of Premier Data Services, Inc.,
      through our wholly owned subsidiary, Premier Data Services, Inc. The transaction
      has been accounted for as a reverse acquisition of Xedar Corporation by Premier
      Data Services, Inc. and Premier Data Services, Inc is deemed to be the purchaser
      and surviving company for accounting purposes. Accordingly, its assets and
      liabilities are included in the consolidated balance sheet at their historical
      book values and the results of operations of Premier Data Services, Inc. have
      been presented for the comparative prior period. Premier Data Services, Inc.
      was
      formed in 1994 by four partners, three of whom remain with us today. We issued
      a
      string of successful land database and mapping products, including ClaimFinder®
in 1995, LeaseFinder® in 1996, LotFinder® and CartéView® in 1997, Lease Sale
      System in 1998, Land Link® in 1999, PDS Studio® in 2001, Launch Pad in 2002, Map
      Layout Express in 2003, Map Server in 2004 and the Historical Lease Sale
      database in 2006. Also, we developed a number of custom applications for
      selected Federal Government clients, such as the BLM Lease Sale System, Mining
      Claim ADP, and OG Map II software. These custom applications expanded our base
      of development experience, allowing us to transfer technology from our custom
      design work into packaged software products.




Initial
      sales efforts were targeted primarily at the mining industry, followed by the
      oil & gas industry and then the federal government market, with sales to the
      Bureau of Land Management (BLM), Bureau of Reclamation, and U.S. Forest
      Service.





We
      acquired FuGEN, Inc., a Maryland-based software development and systems
      consulting company, in early 2002. This gave us an expanded foothold in the
      federal government marketplace, which has led to major information technology
      systems and enterprise security consulting projects with the Department of
      State, the Veterans Administration, the Bureau of Land Management, and the
      National Park Service. FuGEN was also founded in 1994. The founder and the
      initial two members of FuGEN’s executive staff are still active in our
      day-to-day operations.





We,
      through our subsidiary PDS GIS/LIS, Inc., a Delaware corporation, acquired
      Land
      Links Company Ltd., a New Mexico Limited Liability Company pursuant to an
      Interest Purchase Agreement dated January 1, 2007. This acquisition expanded
      our
      foothold in the geographic information systems arena.





Capital
      Structure


Our
      authorized common stock consists of 50,000,000 shares of common stock, no par
      value per share. Each owner of our common stock has equal right to dividends
      and
      voting and there are no preemptive rights associated therewith.





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Geographical
      Information Systems Segment


Our
      Geographical Information Systems (“GIS”) segment provides government and oil and
      gas customers with a combination of land database products and production
      services related to the creation or enhancement of land records. In fiscal
      year
      2006, our GIS segment’s client base included the Bureau of Land Management, the
      Bureau of Reclamation, the National Park Service, and more than 200 commercial
      oil and gas customers. Approximately 50% of our GIS segment’s revenues come from
      subscriptions to its database products, and 50% from its GIS production
      services. There is typically a modest decline in revenues related to GIS
      production services during the fourth quarter of each year, due to reduced
      client activity levels and a smaller number of business days than in other
      quarters.





Customers
      who use the land database products can access information through an internet
      site or by compact disc. The database products provide database queries,
      reports, and digital maps for over 13,000,000 Bureau of Land Management and
      state land records in the Rocky Mountain area of the United States. Users can
      investigate such land information as competitor activity, federal and state
      lease ownership, lot and tract survey data, open federal acres, split estate
      lands, and trend acreage positions.





In
      the
      area of production services, our GIS segment provides data editing and
      enhancement, scanning, data conversion, data integration, and custom mapping.
      The typical customer uses these services to convert existing GIS data into
      a
      digital format, or to integrate disparate data sets.





Information
      Technology Consulting Segment


Our
      consulting segment provides independent verification and validation and
      information assurance on large projects within several federal agencies. In
      fiscal year 2006, our consulting segment’s client base included the National
      Park Service as a prime contractor, and the Internal Revenue Service, USAID
      and
      the Department of State as a subcontractor. The Department of State contract
      represents 46% of the segment’s revenues. There is typically a modest decline in
      consulting revenues during the fourth quarter of each year, due to a smaller
      number of business days than in other quarters that is driven by a high
      concentration of mandatory federal government holidays.





Other
      Segments


Our
      customer relationship management segment provided software maintenance support,
      and was sold in November 2006. Our justice information systems segment created
      and installed court case management systems, and was sold to Justice Systems,
      Inc. in February 2007.





Product
      Development and Technology


Our
      product development efforts and use of technology focus on the collection,
      management, and delivery of critical information to our customers through our
      database offerings. The management and expansion of our databases are central
      to
      our product development efforts. We continuously update and refine our databases
      through proprietary methods and the use of technology encompassing the following
      steps:





·
            Gathering
                content from outside sources;


·
            Authenticating
                the content based on error-checking
                routines;


·
            Translating
                this information into useable
                formats;


·
            Tagging
                the information for multiple attributes and indexing for retrieval
                purposes;


·
            Posting
                to our Internet site for access by customers, or writing the information
                to compact discs for delivery to
                customers.





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            4
            -*








It
      is our
      ability to gather data from disparate sources, and the use of our proprietary
      software and data management capabilities, which allow improved access to this
      data, coupled with our authentication and error-checking routines, that
      differentiates the services we offer.





We
      use
      proprietary and non-proprietary technologies that index critical information
      in
      a variety of ways, such as broad field categories, document type, and document
      title. We employ robust, redundant storage technology to ensure that its
      critical information is highly available. Our processes allow for updating
      as
      soon as new information becomes available.





Customers


We
      have a
      diverse customer base that includes many of the largest companies or government
      entities in the industries we serve. Our government customers include counties,
      states, and the federal government. The majority of our GIS customers are
      comprised of large multi-national and national oil and exploration companies.
      In
      2006, our largest two customers generated 37% of our total revenue.





Government
      Contracts


We
      sell
      our products and services to various government agencies and entities. One
      contract, through a prime contractor with the Department of State, comprised
      27%
      of our total 2006 revenue. Our government contracts are subject to terms that
      would allow for termination at the election of the government. With the
      exception of the Department of State contract, we believe that no termination
      of
      any contract or subcontract at the election of the government would have a
      material adverse impact on our financial results.





Sales
      and Marketing


A
      sales
      focus is embedded throughout all levels of our corporate culture and has
      contributed significantly to our consistently strong revenue growth and current
      sales funnel. We have two full time sales people, yet we have eight employees
      with a large portion of their focus and responsibilities connected to sales.
      In
      addition to our own personnel, we have multiple teaming and reseller
      relationships, which are utilized as an economical means to promote, install
      and
      maintain our products and services.





We
      support this sales focus through a combination of marketing efforts which
      include a well maintained, functional and attractive web site, a quarterly
      e-news letter to all clients, attendance at selected trade shows, participation
      in selected trade associations and an assortment of collateral
      materials.





Federal
      land data customers are easy to identify because any government agency involved
      with land use in the western United States must have access to information
      such
      as that available through our products. In most cases, such as the Bureau of
      Land Management, there is already an in-house staff that is reviewing land
      data
      and creates maps, but it does so mostly by hand. The value proposition presented
      in these instances focuses on labor savings, improved customer service, time
      reduction and the improved accuracy to be realized by implementing our products.
      The main obstacles in closing government sales involve the allocation of funds
      (which frequently lengthens the sales cycle into the following fiscal year),
      the
      lengthy approval process to which most government purchases are subjected and
      the tendency for internal development versus outsourcing.








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            5
            -*





Our
      commercial oil and gas customers are easily identified, because they appear
      in
      the databases provided by the Bureau of Land Management as current federal
      land
      leaseholders or bidders for land that is being made available. Our commercial
      sales staff contacts potential customers based on this information, which is
      prioritized by the number of lease holdings per customer. One-on-one meetings,
      which include product demonstrations, follow initial contacts with potential
      customers. Customers are also identified at trade shows, which are attended
      by
      our sales staff on a regular basis. The full sales cycle for oil and gas
      customers is in the range of three to four months.





Federal
      systems security projects require considerable face-to-face discussion with
      the
      senior information technology managers of a federal department, agency, or
      bureau. The emphasis in these meetings is on the technical approach to be taken
      by us, which calls for in-depth discussions of client needs. After initial
      approval, these projects are given to a contracting manager, who determines
      the
      funding vehicles to be used, reviews the proposals, and assigns contracts.
      In
      some cases, we do not have access to a particular funding vehicle, and so we
      have managed projects from the position of a subcontractor to another entity
      with the appropriate funding vehicle. Our strategy to expand by acquisition,
      as
      discussed further below, should give us sufficient mass to bid directly on
      a
      larger proportion of major government systems security projects, thereby
      allowing us to act as the prime contractor and potentially garner a larger
      share
      of the revenue from each project.





The
      sales
      cycle for systems security projects ranges from three months to a year, with
      very large projects occasionally requiring a longer sales cycle.





Customer
      Support


Our
      customer support program includes customer service, training, and
      surveys:


·
            Customer
                service. We maintain a customer service desk at our Colorado location,
                which is open during regular business hours to assist customers using
                our
                land databases.


·
            Customer
                training. We have posted our training manuals on our Internet site,
                and
                also periodically release training tips to all registered users of
                our
                products.


·
            Customer
                surveys. We periodically issue an Internet-based survey to our customers
                to determine what types of land databases they would like to see
                us
                produce, and the priority in which those databases should be
                released.





All
      customer contacts handled through the customer service desk are tracked using
      a
      customer relationship management database. This database is periodically
      reviewed and summarized on a monthly basis, with key issues being brought to
      the
      attention of managers for further action.





Competition


The
      dominant player in the GIS marketplace is Environmental Systems Research
      Institute (ESRI), which is the largest GIS company in the world. ESRI is a
      privately held company. ESRI’s target market is top-level major GIS systems. We
      are an ESRI Business Partner that builds extensions to ESRI products to
      integrate with its client’s specific business processes. We rarely compete with
      ESRI; rather, our product offerings are complementary. Our land database
      products and related production services compete with offerings from InfoPipe
      Inc., Divestco Inc., Geographic Technologies Group, LandWorks, Inc., and
      WhiteStar, Inc. In addition, the Federal government itself can be considered
      a
      competitor, since it is making an increasing amount of land data available
      to
      the public via the Internet and other means. Thus far, the competitive threat
      posed by the Federal government has not been significant due to the primitive
      format in which the government provides data, as well as the lack of any tools
      to browse or easily search such data.





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Our
      consulting segment competes against a large number of companies, and has
      subcontracted with several of them. Competitors include CACI, SCS, SAIC, STG,
      Inc., ITS Services, NCI Information Services and Stanley Associates. We
      differentiate our self by virtue of the quality of the services we deliver,
      as
      well as the use of an internal analysis tool that improves the efficiency of
      our
      consultants. The segment’s quality of service has resulted in several of our
      projects extending for many years.





Intellectual
      Property


We
      rely
      heavily on intellectual property, including intellectual property we own and
      intellectual property licensed from third parties. We regard our trademarks,
      copyrights, licenses, and other intellectual property as valuable assets and
      use
      intellectual property laws, as well as license and confidentiality agreements
      with our employees, dealers, and others, to protect our rights. In addition,
      we
      exercise reasonable measures to protect our intellectual property rights and
      enforce these rights when we become aware of any potential or actual violation
      or misuse.





Intellectual
      property licensed from third parties is a vital component of our offerings
      and,
      in many cases, cannot be independently replaced or recreated by us or others.
      We
      have longstanding relationships with the government agencies, and manufacturers
      from whom we license information. Almost all of the licenses that we rely upon
      are nonexclusive and expire within one to two years unless renewed.





We
      have
      trademarked, or applied for trademarks, on the names of many of our products,
      and we have exercised reasonable measures to protect our intellectual property
      rights and enforce these rights when we become aware of any potential or actual
      violations or misuse.





Employees


As
      of
      December 31, 2006, we had approximately 45 total employees, of which 4 were
      part
      time employees, and all of whom are located within the United States. None
      of
      the employees are represented by a collective bargaining agreement and we
      consider our employee relations to be good.





Available
      Information


Our
      annual report on Form 10-KSB, quarterly reports on Form 10-QSB, current reports
      on Form 8-K, and amendments to those reports are available, without charge,
      on
      our website, www.xedarinc.com, as soon as reasonably practicable after they
      are
      filed electronically with the SEC. We have also posted our code of conduct
      and
      code of ethics on our website. In addition, you may read and copy any materials
      that we file with the SEC at the SEC's Public Reference Room at 450 Fifth
      Street, N.W., Washington, DC 20549 and you may obtain information on the
      operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.
      Further the SEC maintains a website at www.sec.gov that
      contains copies of our reports, proxy and information statements, and other
      information concerning us. Copies of our reports, proxy and information
      statements are also available, without charge, when requested in writing from
      Xedar Corporation, attn: Secretary, 8310 South Valley Highway, Suite 220,
      Englewood, CO 80112.





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            7
            -*





**Item
      1A. Risk Factors**





*You
      should carefully consider the following risks and all of the other information
      set forth in this report . If any of the events or developments described below
      actually occurs, our business, financial condition, and results of operations
      may suffer. In that case, the trading price of our common stock may decline
      and
      you could lose all or part of your investment.*





**Risk
      Related to Our Business**





**We
      depend on database content obtained through agreements with third parties,
      and
      the failure to maintain these agreements could prove harmful to our
      business.**





A
      significant proportion of the content we use in our database products is
      obtained from either commercial or government entities under licensing
      agreements or requests under the Freedom of Information Act. In particular,
      information obtained from government entities cannot be obtained elsewhere.
      If
      the government entities restrict or withdraw their content from us, some of
      our
      products would be cancelled, which would adversely affect our financial
      condition.





**Our
      financial results could weaken if we cannot consistently obtain customer renewal
      of database subscriptions or product maintenance
      agreements.**





In
      2006,
      we obtained approximately 24% of our revenue from subscriptions to our database
      products. Our results depend on our ability to achieve and sustain high annual
      renewal rates on existing subscriptions and to enter into new subscription
      arrangements on commercially acceptable terms. A failure to achieve high annual
      renewal rates on commercially acceptable terms would have a material adverse
      effect on our business, financial condition, and operating results.





**Our
      growth strategy may prove unsuccessful.**





Our
      growth strategy involves broadening our database product line, as well as
      expanding the range of geographic information systems services offerings, and
      increasing our penetration into the federal government system security market.
      Land databases are difficult to acquire and make commercially viable, while
      the
      addition of new geographical information systems services are highly dependent
      on our ability to acquire other companies. Further, increased penetration into
      the systems security market requires the addition of experienced sales staff,
      who are difficult to acquire and retain. If we are unable to surmount these
      issues, our operating performance, including our ability to generate additional
      revenues on a profitable basis, may be adversely affected.





**We
      may be unable to identify potential acquirees, complete acquisitions, or
      integrate acquisitions into our operations.**





We
      intend
      to selectively pursue acquisitions to complement our internal growth. There
      can
      be no assurance that we will be able to identify suitable candidates for
      successful acquisitions at acceptable prices. In addition, our ability to
      achieve the expected returns and synergies from our past and future acquisitions
      depends substantially on our ability to integrate the offerings, technology,
      administrative functions, and personnel of these businesses into our business
      in
      an efficient and effective manner. We can provide no assurance that we will
      be
      successful in integrating acquired businesses or that acquired businesses will
      perform at anticipated levels. In addition, our past and future acquisitions
      may
      subject us to unanticipated risks or liabilities or disrupt our operations
      and
      divert management’s attention from day-to-day operations.





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            8
            -*








**We
      are affected by conditions and trends in our targeted industries, which may
      inhibit our ability to grow or otherwise adversely affect our
      business.**





We
      derive
      substantially all of our revenue from customers in the oil and gas industry
      and
      the federal government. As a result, our business, financial condition, and
      results of operations depend upon conditions and trends affecting these
      industries generally. For example, there is an ongoing consolidation trend
      in
      the oil and gas industry that has resulted in a reduction of many database
      subscriptions as our subscribers combine their operations. Also, the federal
      government has substantially reduced its spending in order to channel funding
      into various war efforts, resulting in funding reductions on several system
      security projects. Thus, if continued, these trends could have a material
      adverse effect on our business. A failure to maintain revenues and margins
      would
      have a material adverse effect on our business, financial condition, and
      operating results.





**The
      loss of key personnel could impair our future success.**





Our
      future success depends in part on the continued service of our executive
      officers and other key management, sales, consulting, and operations personnel
      and on our ability to continue to attract, motivate, and retain additional
      highly qualified employees. The loss of the services of one or more of our
      key
      personnel, officers or directors, or our inability to recruit replacements
      for
      such personnel or to otherwise attract, motivate, or retain qualified personnel
      could have an adverse effect on our business, operating results, and financial
      condition.





**We
      operate in competitive markets, which may adversely affect our market share
      and
      financial results.**





Our
      competitors have significant financial and information-gathering resources,
      recognized brands, technological expertise, and market experience. These
      competitors are continuously enhancing their products and services, developing
      new products and services, and investing in technology to better serve the
      needs
      of their existing customers and to attract new customers.





Our
      land
      database products compete with offerings from InfoPipe Inc., Divestco Inc.
      and
      WhiteStar, Inc. In addition, the federal government itself can be considered
      a
      competitor, since it is making an increasing amount of land data available
      to
      the public via the Internet and other means. Our consulting segment competes
      against a number of companies, and has subcontracted with several of them.
      Competitors include CACI, CSC, SAIC, STG, Inc., ITS Services, NCI Information
      Services and Stanley Associates.





We
      may
      also face competition from organizations and businesses that have not
      traditionally competed with us but that could adapt their products and services
      to meet the demands of our customers. Increased competition may require that
      we
      reduce the prices of our offerings or make additional capital investments,
      which
      could adversely affect our margins. If we are unable or unwilling to do so,
      we
      may lose market share in our target markets and our financial results may be
      adversely affected.





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            9
            -*








**We
      could experience system failures, which could interrupt customer access to
      our
      Internet site, shut down various databases linked to our Internet site, or
      prevent us from distributing information to our customers by other
      means.**





Our
      ability to protect our data center against damage from fire, power loss,
      telecommunications failure, or other disasters is critical. Any delays or
      failures in our systems or errors in the technology that we use to store and
      deliver content to our customers would harm our business. The growth of our
      customer base may also strain our systems in the future. In addition, our
      products could be affected by failures of third-party technology used in our
      products and internet site, and we may have no control over remedying such
      failures. Any failures or problems with our systems could force us to incur
      significant costs to remedy such failures or problems, decrease customer demand
      for our products, tarnish our reputation, and harm our business.





**Shares
      eligible for future sale could depress the price of our
      shares.**





Sales
      of
      substantial amounts of our common stock in the public market, or the perception
      that such sales could occur, could adversely affect the market price of our
      shares. As of December 31, 2006, we had 18,030,518 shares of common stock
      outstanding. Our principal stockholders are entitled to require us to register
      such shares under the Securities Act of 1933 and, in some cases, are subject
      to
      the lock-up agreements described below. Any sales of common stock by us or
      our
      principal stockholders, or the perception that such sales might occur, could
      have a material adverse effect on the price of our shares.





Substantially
      all of our shareholders have agreed not to sell or otherwise dispose of their
      shares of common stock until July 2007, with the exception of two shareholders
      who own approximately 2,230,000 shares, and who may sell those shares at any
      time, subject to applicable securities law. However, upon the expiration of
      the
      lock-up periods, a significant number of shares of our common stock will,
      subject to applicable securities law, become freely tradable, which could
      depress the market price of our stock.





**The
      price of our common stock may be volatile and may be affected by market
      conditions beyond the our control.**





Our
      share
      price is likely to fluctuate in the future because of the volatility of the
      stock market in general and a variety of factors, many of which are beyond
      the
      our control, including:





·
            Quarterly
                variations in actual or anticipated results of
                operations;


·
            Changes
                in financial estimates by securities
                analysts;


·
            Actions
                or announcements by us or our
                competitors;


·
            Regulatory
                actions;


·
            Litigation;


·
            Loss
                or gain of major customers or content
                providers;


·
            Additions
                or departures of key personnel; and


·
            Future
                sales of our common stock.





*-
            10
            -*











Market
      fluctuations could result in volatility in the price of our common stock, which
      could cause a decline in the value of your investment. In addition, if our
      operating results fail to meet the expectations of stock analysts or investors,
      we may experience an immediate and significant decline in the trading price
      of
      our common stock.





**Item
      1B. Unresolved Staff Comments**




None.





**Item
      2. Description of Property.**




Offices


We
      lease
      approximately 8,200 square feet of office space in Englewood, Colorado, which
      comprises our headquarters, and we lease approximately 3,500 square feet of
      office space in Rockville, Maryland. Our lease in Englewood, Colorado requires
      monthly payments of $13,623 and expires in May 2008 and our lease in Rockville,
      Maryland requires monthly payments of $8,083 and expires in May 2009. We believe
      that our properties, taken as a whole, are in good operating condition and
      are
      suitable and adequate for our current business operations, and that additional
      or alternative space will be available on commercially reasonable terms for
      future use and expansion.





Subsequent
      to the period covered by this report, we acquired Land Links Company, Ltd.,
      which leases approximately 2,600 square feet of office space in Albuquerque,
      New
      Mexico. This lease requires monthly payments of $2,200 and expires in March
      2010.





**Item
      3. Legal Proceedings.**




We
      are
      not party to any material litigation and are not aware of any pending or
      threatened litigation that could have a material adverse effect upon our
      business, operating results, or financial condition.





**Item
      4. Submission of Matters to a Vote of Security Holders.**




During
      the fourth quarter of fiscal 2006, one matter was submitted to a vote of
      security holders, through the solicitation of proxies or otherwise. The meeting
      was held December 19, 2006, and was a special meeting. At the meeting the
      shareholders were asked to approve a proposal to authorize a reverse split
      of
      the shares of our common stock at a ratio of 1 share for each 8.649705 shares
      then outstanding, prior to the merger and accounting recapitalization. The
      reverse split was approved by a vote of 6,667,406 share for the reverse split
      and 100 shares against the reverse split out of the 8,649,705 shares then
      outstanding and entitled to vote. The reverse stock split reduced the number
      of
      shares of our Common Stock issued and outstanding, but did not change the par
      value of our common stock, and did not change the number of authorized shares
      of
      our common stock.





**Part
      II**





**Item
      5. Market for Common Equity and Related Stockholder
      Matters.**




Market
      Information


Our
      common stock trades in the Over-the-Counter market (OTC.BB) under the ticker
      symbol “XDRC.OB.” As of December 31, 2006, there were approximately 181 holders
      of record of our common stock.





The
      following table sets forth, for the periods indicated, the high and low sales
      prices per share for the common stock as reported on the OTC BB. The quotations
      reflect inter-dealer prices, without retail mark-up, mark-down or commission
      and
      may not represent actual transaction prices. Our shares were not traded publicly
      in Fiscal 2005.





*-
            11
            -*








**High**
            
            **Low*****2006*****First
                Quarter**
            
            $
            0.02
            
            $
            0.02**Second
                Quarter**
            
            $
            0.02
            
            $
            0.02**Third
                Quarter**
            
            $
            0.10
            
            $
            0.02**Fourth
                Quarter**
            
            $
            0.30
            
            $
            0.10





Dividends


We
      have
      never declared or paid dividends on our common stock. We currently intend to
      retain future earnings, if any, for use in our business, and, therefore, we
      do
      not anticipate declaring or paying any dividends in the foreseeable future.
      Payments of future dividends, if any, will be at the discretion of our board
      of
      directors after taking into account various factors, including our financial
      condition, operating results, current and anticipated cash needs and plans
      for
      expansion.





Securities
      Authorized for Issuance Under Equity Compensation Plans


By
      resolution of the Board of Directors dated February 9, 2007, we have entered
      into an equity compensation arrangement or plan with each of our six
      non-employee directors which provides that each such non-employee director
      shall
      receive 10,000 shares of our restricted common stock, vested in thirds annually,
      commencing December 2007 (i.e., 3334 shares will vest on December 31, 2007,
      3333
      shares will vest on December 31, 2008, and 3333 shares will vest on December
      31,
      2009). This equity compensation arrangement or plan has not been approved or
      ratified by our shareholders. As of December 31,2006, and as of now, we
      maintained and maintain no other equity compensation plan or
      arrangements.





Unregistered
      Sales of Securities


On
      January 9, 2007, we entered into consulting arrangements with Livestrong Venture
      Capital Partners, Inc., C.C.R.I. Corporation, and Capital Group Communications
      for a term of twelve months, pursuant to which we issued to 500,000 shares
      of
      our common stock to Livestrong Venture Capital Partners, Inc., 200,000 shares
      of
      our common stock to C.C.R.I. Corporation, and 500,000 shares of our common
      stock
      to Capital Group Communications as consideration for the financial consulting
      services to be provided. The shares were issued pursuant to an exemption from
      registration available under Section 4(2) of the Securities Act. The
      certificates representing the shares have been issued with a restrictive legend
      and stop transfer instructions have been placed against the certificate.
      Livestrong Ventures Capital Partners, Inc., C.C.R.I. Corporation, and Capital
      Group Communications represented that they had full knowledge of our business
      affairs when they acquired the shares.





**Item
      6. Management's Discussion and Analysis or Plan of
      Operations.**


*The
      following discussion and analysis should be read in conjunction with our
      financial statements and related notes thereto included elsewhere in this report
      and is qualified in its entirety by reference to such financial statements
      and
      related notes. This discussion contains forward-looking statements that involve
      risks and uncertainties. Our actual results could differ materially from those
      anticipated in the forward-looking statements as a result of certain factors,
      including those risks discussed in the section titled “Risk
      Factors”.*








*-
            12
            -*





Overview


Our
      wholly owned operating subsidiary, Premier Data Services, Inc., was formed
      in
      1994 by four partners, three of whom remain with us. We issued a string of
      successful land database and mapping products, including ClaimFinder® in 1995,
      LeaseFinder® in 1996, LotFinder® and CartéView® in 1997, Lease Sale System in
      1998, Land Link® in 1999, PDS Studio® in 2001, Launch Pad in 2002, Map Layout
      Express in 2003, Map Server in 2004 and the Historical Lease Sale database
      in
      2006. Also, we developed a number of custom applications for selected Federal
      Government clients, such as the BLM Lease Sale System, Mining Claim ADP, and
      OG
      Map II software. These custom applications expanded our base of development
      experience, allowing us to transfer technology from our custom design work
      into
      packaged software products.




In
      December 2006, Premier Data Services, Inc., completed a reverse acquisition
      transaction with us. We were a public shell company. In accordance with the
      terms of the Merger Agreement, we issued 14,082,871 shares of our common stock
      for 13,685,018 shares of the common stock and 2,685,253 shares of the Series
      A
      preferred stock of Premier Data Services, Inc. Immediately after the merger
      transaction, the former stockholders of Premier Data Services, Inc., owned
      approximately 85% of the issued and outstanding shares, and the management
      and a
      board of directors designated by Premier Data Services, Inc., have been
      appointed as our officers and directors. The conversion of Premier Data
      Services, Inc. shares into our shares has been accounted for as a reverse
      acquisition, since the stockholders of Premier Data Services, Inc. obtained
      control of us. The following discussion includes the historical book values
      and
      results of operations of Premier Data Services, Inc.







Initial
      sales efforts were targeted primarily at the mining industry, followed by the
      oil and gas industry and then the federal government market, with sales to
      the
      Bureau of Land Management (BLM), Bureau of Reclamation, and U.S. Forest Service.
      We acquired FuGEN, Inc., a Maryland-based software development and systems
      consulting company, in early 2002. This gave us an expanded foothold in the
      federal government marketplace, which has led to major system security
      consulting projects with the Department of State, USAID, the Bureau of Land
      Management, and the National Park Service.





Critical
      Accounting Policies and Estimates


Our
      Management’s Discussion and Analysis or Plan of Operation section discusses our
      financial statements, which have been prepared in accordance with accounting
      policies generally accepted in the United States of America. The preparation
      of
      the financial statements requires management to make estimates and assumptions
      that affect the reported amounts of assets and liabilities at the date of the
      financial statements and the reported amounts of revenues and expenses during
      the reporting period. On an on-going basis, management evaluates its estimates
      and judgments, including those related to revenue recognition, recoverability
      of
      intangible assets, and contingencies and litigation. Management bases its
      estimates and judgments on historical experience and on various other factors
      that are believed to be reasonable under the circumstances, the results of
      which
      form the basis for making judgments about the carrying value of assets and
      liabilities that are not readily apparent from other sources. Actual results
      may
      differ from these estimates under different assumptions or conditions. The
      most
      significant accounting estimates inherent in the preparation of our consolidated
      financial statements include estimates as to the appropriate carrying value
      of
      certain assets and liabilities which are not readily apparent from other
      sources, primarily the valuation of intangible assets. The methods, estimates
      and judgments used by us in applying these most critical accounting policies
      have a significant impact on the results we report in our consolidated financial
      statements.








*-
            13
            -*





Revenue
      Recognition


We
      recognize revenue when all of the following criteria have been met: (a)
      persuasive evidence of an arrangement exists, (b) delivery has occurred or
      services have been rendered, (c) the price to the customer is fixed or
      determinable, and (d) collectibility is reasonably assured. Our revenue
      recognition policies are based on the guidance in Staff Accounting Bulletin
      (SAB) No. 104, *Revenue
      Recognition* ,
      and
      Statement of Position (SOP) 97-2, *Software
      Revenue Recognition* .





*Sales
      of critical information and decision-support tools.*





A
      significant proportion of our revenue is derived from the sale of subscriptions
      to our oil and gas database, which is recognized ratably as delivered over
      the
      subscription period.





*Sales
      of services*





We
      provide consulting and GIS production services primarily on a time and materials
      basis. Revenue related to services performed under time and materials contracts
      is recognized in the period performed, at standard billing rates. Revenue
      associated with fixed-price contracts is recognized upon completion of each
      specified performance obligation under the terms of the contract. If the
      contract includes acceptance contingencies, revenue is recognized in the period
      in which we receive documentation of acceptance from the customer.





Stock-Based
      Compensation


Prior
      to
      January 1, 2006, Premier Data Services, Inc. accounted for its stock option
      program under the recognition and measurement provisions of APB Opinion No.
      25
      (“APB 25”), *Accounting
      for Stock Issued to Employees* ,
      and
      related Interpretations, as permitted by FASB Statement No. 123 (“SFAS 123”), *Accounting
      for Stock-Based Compensation* .
      No
      stock based compensation cost was recognized in the Statement of Operations
      for
      the years ended December 31, 2005 and 2004, as all options Premier Data
      Services, Inc. granted had an exercise price equal to the market value of the
      underlying common stock on the date of grant.




During
      2006, Premier Data Services, Inc. adopted the provisions of and accounted for
      stock-based compensation in accordance with SFAS 123R, which replaced SFAS
      123
      and supersedes APB 25. Under the fair value recognition provisions of this
      statement, stock-based compensation cost is measured at the grant date based
      on
      the fair value of the award and is recognized as expense on a straight-line
      basis over the requisite service period, which is the vesting period. Premier
      Data Services, Inc. elected the modified-prospective method, under which prior
      periods are not revised for comparative purposes. The valuation provisions
      of
      SFAS 123R apply to new grants and to grants that were outstanding as of the
      effective date and are subsequently modified. Estimated compensation for grants
      that were outstanding as of the effective date will be recognized over the
      remaining service periods using the compensation cost estimated for the SFAS
      123
      pro forma disclosures. Compensation expense for warrants granted to
      non-employees has been determined in accordance with SFAS No. 123R as the fair
      value of the consideration received or the fair value of the equity instruments
      issued, whichever is more reliably measured.





The
      adoption of SFAS 123R did not have a material impact on our financial position,
      results of operations and cash flows. See Note 9 for further information
      regarding stock-based compensation assumptions and expenses, including pro
      forma
      disclosures for the year ended December 31, 2005 and 2004 as if Premier Data
      Services, Inc. had recorded stock-based compensation expense.








*-
            14
            -*





Recent
      Accounting Pronouncements


In
      September 2006, the FASB issued SFAS No. 157, *"Fair
      Value Measurements,"* which
      enhances existing guidance for measuring assets and liabilities at fair value.
      SFAS No. 157 defines fair value, establishes a framework for measuring fair
      value and expands disclosure about fair value measurements. SFAS No. 157 is
      effective for us beginning in 2007. We are currently assessing the impact of
      the
      adoption of SFAS No. 157, but do not expect that it will have a significant
      impact on our financial position or results of operations.





In
      September 2006, the SEC issued Staff Accounting Bulletin ("SAB")
      No. 108, " *Considering
      the Effects of Prior Year Misstatements when Quantifying Misstatements in
      Current Year Financial Statements.* "
      SAB
      No. 108 requires that companies utilize a "dual-approach" to assessing the
      quantitative effects of financial statement misstatements. The dual approach
      includes both an income statement focused and balance sheet focused assessment.
      SAB No. 108 is applicable beginning in 2007. We are currently assessing the
      impact of the adoption of SAB No. 108, but do not expect that it will have
      a significant impact on our financial position or results of
      operations.





In
      June 2006, the FASB issued FIN No. 48, *"Accounting
      for Uncertainty in Income Taxes—an interpretation of FASB Statement
      No. 109."* This
      Interpretation prescribes a comprehensive model for the financial statement
      recognition, measurement, presentation and disclosure of uncertain tax positions
      taken or expected to be taken in income tax returns. FIN No. 48 is
      effective for us beginning in 2007. We are currently assessing the impact of
      the
      adoption of FIN No. 48, but do not expect that it will have a significant impact
      on our financial position or results of operations.





Identifiable
      Intangible Assets and Goodwill


We
      account for our business acquisitions using the purchase method of accounting.
      It allocates the total cost of an acquisition to the underlying net assets
      based
      on their respective estimated fair values. As part of this allocation process,
      we identify and attribute values and estimated lives to the intangible assets
      acquired.





Identifiable
      intangible assets with finite lives are amortized on a straight-line basis
      over
      their respective lives.





We
      review
      the carrying values of identifiable intangible assets with indefinite lives
      and
      goodwill at least annually to assess impairment because these assets are not
      amortized. Additionally, we review the carrying value of any intangible asset
      or
      goodwill whenever events or changes in circumstances indicate that its carrying
      amount may not be recoverable. We assess impairment by comparing the fair value
      of an identifiable intangible asset or goodwill with its carrying value.
      Impairments are expensed when incurred.





Liquidity
      and Capital Resources


We
      had
      cash and cash equivalents of $1,354,652 at December 31, 2006. Our total current
      assets at December 31, 2006 were equal to $2,061,414. We also had the following
      long-term assets: $1,246,904 in goodwill; $215,088 in computer hardware and
      software, net; $73,891 in office equipment, furniture and fixtures, and
      leasehold improvements, net. Our total assets as of December 31, 2006 were
      $3,597,297.





Our
      total
      current liabilities were $1,520,021 at December 31, 2006, which were represented
      by $578,073 of unrecognized subscription revenue, short-term notes payable
      to
      related parties of $383,338, accounts payable of $40,347, a payable to
      shareholder of $400,000, and other accrued expenses of $118,263.








*-
            15
            -*





We
      have
      financed our operations primarily through internally generated cash flow. We
      also have outstanding two notes payable, whose principal and interest totaled
      $383,338 as of December 31, 2006. The notes accrue interest at 8.5% per annum.
      The notes are secured by substantially all of our assets.





Net
      Cash from Continuing Operations - Operating Activities


During
      the year ended December 31, 2006, our operating activities used $40,045 of
      cash.
      This reflected a $610,000 net loss, a $53,000 use of cash that was caused by
      a
      reduction in accrued liabilities, and a $10,000 use of cash from other
      activities; these cash reductions were offset by $292,000 of depreciation, a
      $17,000 source of cash that was caused by an increase in accounts payable,
      and a
      $278,000 source of cash that was caused by a reduction in accounts receivable.
      During the same period in 2005, our operating activities provided $481,000
      of
      cash. This reflected a $13,000 net profit, which was increased by $312,000
      of
      depreciation. Increases of $126,000 of accrued liabilities and $81,000 of
      deferred subscription revenue were primary sources of cash.





Net
      Cash from Continuing Operations - Investing Activities


Net
      cash
      used in our investing activities was $54,000 and $156,000 for the years ended
      December 31, 2006 and 2005, respectively. In both cases, we purchased computer
      hardware and software to bolster our GIS server operation, as well as to replace
      existing computer and copier equipment.





Net
      Cash from Continuing Operations - Financing Activities


Net
      cash
      provided by our financing activities was $1,252,000 for the fiscal year ended
      December 31, 2005, while $290,000 was used by our financing activities for
      the
      fiscal year ended December 31, 2005. During fiscal 2006, we obtained $82,000
      of
      short-term financing from a related party, and paid it back. We also obtained
      $1,330,000 of equity financing and paid down $78,000 of debt to a related party.
      During fiscal 2005, we obtained $100,000 of short-term financing from a related
      party, and both paid it back as well as $200,000 previously owed to the same
      party. In addition, we paid down $90,000 of debt to a related
      party.





Results
      of Operations





Revenue


Our
      revenues decreased from $7,860,000 in 2005, to $6,237,000 in 2006, which was
      a
      decrease of 21%. This decrease was almost entirely due to the expiration of
      several consulting contracts with the federal government.





Our
      geographical information systems segment experienced a revenue decline from
      $2,478,000 in 2005 to $2,434,000 in 2006, which was a decrease of 1.8%. This
      decrease was largely due to several non-recurring outsourced GIS production
      projects in 2005. A bi-annual inflationary increase in database product prices
      in early 2007 is expected to increase revenues by $50,000. However, continuing
      consolidation among commercial oil and gas customers is likely to offset this
      increase. An acquisition that closed in early 2007 may contribute an additional
      $350,000 to our GIS segment revenues during 2007, with no significant change
      in
      profitability.





Our
      information technology consulting segment experienced a revenue decline from
      $4,888,000 in 2005 to $3,299,000 in 2006, which was a decrease of 33%. This
      decrease was due to the expiration of several short-term consulting contracts
      with the federal government. Current government contracts supporting this
      segment’s revenues are expected to continue through 2007. Though our consulting
      segment is bidding on several new projects, it is not possible to predict
      changes in 2007 revenues and profits at this time.








*-
            16
            -*





Our
      customer relationship management segment experienced a revenue decline from
      $374,000 in 2005 to $182,000 in 2006, which was a decline of 51%. The revenue
      reduction was caused by an ongoing decline in the number of customers to whom
      the segment provides maintenance support. This segment was sold in November
      2006.





The
      justice information systems (JIS) segment experienced a revenue increase from
      $120,000 in 2005 to $322,000 in 2006, which was a 169% increase. This increase
      was caused by $250,000 billed under a single consulting services contract,
      while
      $66,000 was related to JIS projects. The revenues generated by this segment
      are
      increasingly unrelated to justice systems, and it was consolidated into our
      consulting segment as of the end of 2006. This segment was sold in February
      2007.





Operating
      Expenses


Our
      operating expenses were $6,809,000 and $7,721,000 in 2006 and 2005,
      respectively. These expenses consisted of $5,396,000 and $6,100,000 of
      compensation expenses in 2006 and 2005, respectively. The $704,000 decline
      in
      compensation expense from 2005 to 2006 was primarily caused by a reduction
      in
      those staff associated with several federal consulting projects that were
      completed during the period. We also incurred general and administrative
      expenses of $1,413,000 and $1,622,000 in 2006 and 2005, respectively. Bad debt
      was also reduced by $40,000 during 2006, primarily due to an unusually high
      bad
      debt expense in 2005 that was caused by the merger of several customers. Travel
      and entertainment costs declined by $35,000 in 2006, in approximate proportion
      to the reduction in headcount during the year. Income tax expense for the
      consulting division was reduced by $61,000 during 2006, due to the substantial
      decline in earnings from 2005.





The
      margin of our consulting segment declined to $175,000 from $1,085,000 for the
      years ended December 31, 2006 and 2005, respectively. This $910,000 reduction
      in
      margin was caused by the completion of a non-recurring federal project in late
      2005, as well as a reduction in funding for other projects. In addition,
      unbillable staff were retained in anticipation of new projects that have not
      yet
      occurred, so that the salaries expense did not decline in proportion to the
      lost
      revenue.





The
      margin of our GIS segment increased to $350,000 from $93,000 for the fiscal
      years ended 2006 and 2005. Of this $257,000 increase, $99,000 was caused by
      a
      reduction in the salaries expense, which in turn was caused by the delayed
      rehiring of two positions, whose occupants left us during the first half of
      2006. There was also a decline of $51,000 in bad debt expenses during fiscal
      2006, which had been much higher in 2005 when several customers combined and
      merged the database subscriptions to which they were subscribing. In addition,
      there was a net decrease of $106,000 in outside services, due to a decline
      in
      outsourced production projects in 2006 over 2005.





The
      margin of our customer relationship management segment declined to $(87,000)
      in
      fiscal 2006 from $51,000 in fiscal 2005. Of this $138,000 margin reduction,
      the
      primary cause was a revenue decline of $193,000 that was attributable to the
      departure of several customers, as well the sale of the business in early
      November 2006, which eliminated the final two months of 2006 revenue
      recognition. Offsetting the revenue decline was a $19,000 decline in
      depreciation and a $34,000 salary reduction in 2006.





The
      margin of our justice information system segment improved to $(261,000) in
      fiscal 2006 from $(475,000) in fiscal 2005. Of this $214,000 improvement,
      $131,000 was caused by an increase in revenues due to the continuation of a
      consulting services contract that began during the second half of
      2005.








*-
            17
            -*





We
      expect
      our operating expenses to increase in the future as we execute our business
      plan.





Interest
      expense was $66,000 and $102,000 in 2006 and 2005, respectively. This consisted
      of interest accrued on notes payable to related parties.





Plan
      of Operation


Our
      expansion will be driven by a combination of organic growth and acquisitions
      in
      both our GIS segment and our consulting segment. We expect that growth in our
      GIS segment will be founded upon the acquisition of other companies that provide
      either related databases that can be combined with our GIS segment’s existing
      database products, or companies that provide related production services. This
      should result in an expansion of the GIS segment’s customer base into additional
      federal and state agencies, most remaining large regional oil and gas production
      companies to which the segment does not already sell, and more product
      penetration into the existing customer base.





We
      expect
      that growth in the consulting segment will be founded upon the acquisition
      of
      other companies, so that we can use the acquired companies’ sales personnel to
      cross-sell services into existing customers, while also expanding the
      specialized skill base of all consultants to provide a greater range of services
      to customers. This should result in both greater sales penetration into existing
      federal customers and an expansion into additional federal
      agencies.





Off-Balance
      Sheet Transactions


We
      have
      no off balance sheet arrangements that have or are reasonably likely to have
      a
      current or future effect on our financial condition, changes in financial
      condition, revenues or expenses, results of operations, liquidity, capital
      expenditures or capital resources that are material to investors.







*-
          18
          -*





**Item
      7. Financial Statements.**





**INDEPENDENT
      AUDITORS' REPORT**











To
      the
      Board of Directors and Stockholders


Xedar
      Corporation


Denver,
      Colorado





We
      have
      audited the accompanying consolidated balance sheet of Xedar Corporation as
      of
      December 31, 2006, and the related consolidated statements of operations,
      stockholders’ equity and cash flows for the years ended December 31, 2006 and
      2005. These financial statements are the responsibility of the Company’s
      management. Our responsibility is to express an opinion on these financial
      statements and schedule based on our audits.




We
      conducted our audits in accordance with the standards of the Public Company
      Accounting Oversight Board (United States). Those standards require that we
      plan
      and perform the audit to obtain reasonable assurance about whether the financial
      statements are free of material misstatement. The Company is not required to
      have, nor were we engaged to perform, an audit of its internal control over
      financial reporting. Our audit included consideration of internal control over
      financial reporting as a basis for designing audit procedures that are
      appropriate in the circumstances but not for the purpose of expressing an
      opinion on the effectiveness of the Company’s internal control over financial
      reporting. Accordingly, we express no such opinion. An audit includes examining,
      on a test basis, evidence supporting the amounts and disclosures in the
      financial statements. An audit also includes assessing the accounting principles
      used and significant estimates made by management, as well as evaluating the
      overall financial statement presentation. We believe that our audits provide
      a
      reasonable basis for our opinion.





In
      our
      opinion, the consolidated financial statements referred to above present fairly,
      in all material respects, the financial position of Xedar Corporation as of
      December 31, 2006, and the results of their operations and their cash flows
      for
      the years ended December 31, 2006 and 2005 in conformity with generally accepted
      accounting principles in the United States of America.





/s/
      Ehrhardt Keefe Steiner & Hottman PC


Ehrhardt
      Keefe Steiner & Hottman PC





March
      13,
      2007


Denver,
      Colorado




*F
          -
          1*


**Xedar
        Corporation**  **CONSOLIDATED
        BALANCE SHEET**





December
                31,2006**ASSETS**Current
                AssetsCash
                and cash equivalents
            
            $
            1,354,652Trade
                accounts receivable, net of allowance for doubtful accounts of
                $6,230
            
            
            638,201Other
                current assets
            
            
            68,561Total
                Current Assets
            
            
            2,061,414Property
                and equipment, net
            
            
            288,979Goodwill
            
            
            1,246,904Total
                Assets
            
            $
            3,597,297**LIABILITIES
                AND STOCKHOLDERS’ EQUITY**Current
                LiabilitiesAccounts
                payable
            
            $
            40,347Payable
                to shareholders
            
            
            400,000Deferred
                subscription revenue
            
            
            578,073Current
                portion of convertible notes payable to related parties
            
            
            383,338Accrued
                liabilities
            
            
            118,263Total
                Current Liabilities
            
            
            1,520,021Stockholders’
                EquityCommon
                stock, no par value, 50,000,000 shares authorized;
              18,030,518
                shares issued and outstanding at December 31, 2006
            
            
            3,542,525Accumulated
                deficit
            
            
            (1,465,249
            )Total
                Stockholders’ Equity
            
            
            2,077,276Total
                Liabilities and Stockholders’ Equity
            
            $
            3,597,297


See
        notes
        to consolidated financial statements.




*F
          -
          2*


Xedar
      Corporation


**CONSOLIDATED
      STATEMENTS OF OPERATIONS**





For
                the Years EndedDecember
                31,2006
            
            2005RevenueSales
            
            $
            6,237,339
            
            $
            7,860,152Cost
                of sales (principally consulting compensation)
            
            
            2,960,326
            
            
            3,506,836Gross
                profit
            
            
            3,277,013
            
            
            4,353,316Selling
                and Administrative ExpensesCompensation
                and payroll taxes
            
            
            2,435,955
            
            
            2,592,706Other
                expenses
            
            
            1,412,662
            
            
            1,621,856Total
                Selling and Administrative Expenses
            
            
            3,848,617
            
            
            4,214,562Net
                Operating (Loss) Income
            
            
            (571,604
            )
            
            138,754Other
                Income (Expenses)Interest
                expense
            
            
            (65,942
            )
            
            (101,565
            )Interest
                income
            
            
            10,960
            
            
            8,662Total Other Expenses
            
            
            (54,982
            )
            
            (92,903
            )Income
                (Loss) Before Income Tax
            
            
            (626,586
            )
            
            45,851Income
                Tax Benefit (Expense)
            
            
            16,621
            
            
            (32,604
            )Net
                (Loss) Income
            
            $
            (609,965
            )
            $
            13,247Net
                Income (Loss) per Share:Basic
            
            $
            (0.04
            )
            $
            0.001Diluted
            
            $
            (0.04
            )
            $
            0.001Shares
                Used in Computing Net Income (Loss) per Share:Basic
                - pro forma
            
            
            13,804,696
            
            
            9,437,692Diluted
                - pro forma
            
            
            13,804,696
            
            
            14,597,168


S ee
        notes
        to consolidated financial statements.




*F
          -
          3*


Xedar
      Corporation


**CONSOLIDATED
      STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY**


**For
      the Years Ended**  **December
      31, 2006 and December 31, 2005**





Series
                A Convertible
            
            
            
            
            
            Additional
            
            RetainedPreferred
            
            Common
            
            Paid-In
            
            EarningsStock
            
            Stock
            
            Capital
            
            (Deficit)
            
            TotalShares
            
            Amount
            
            Shares
            
            AmountBalance
                - January 1, 2005
            
            
            3,162,941
            
            $
            3,163
            
            
            12,068,813
            
            $
            12,069
            
            $
            2,155,694
            
            $
            (868,531
            )
            $
            1,302,395Net
                income
            
            
            ---
            
            
            ---
            
            
            ---
            
            
            ---
            
            
            ---
            
            
            13,247
            
            
            13,247Balance
                - December 31, 2005
            
            
            3,162,941
            
            
            3,163
            
            
            12,068,813
            
            
            12,069
            
            
            2,155,694
            
            
            (855,284
            )
            
            1,315,642Sale
                of shares of Common Stock to investors for $1,330,000 in
                cash
            
            
            ---
            
            
            ---
            
            
            1,700,788
            
            
            1,701
            
            
            1,328,299
            
            
            ---
            
            
            1,330,000Issuance
                of 6,667 shares of Common Stock pursuant to stock option
                exercise
            
            
            ---
            
            
            ---
            
            
            6,667
            
            
            7
            
            
            1,619
            
            
            ---
            
            
            1,626Conversion
                to common stock in a reverse acquisition
            
            
            (3,162,941
            )
            
            (3,163
            )
            
            979,503
            
            
            3,488,775
            
            
            (3,485,612
            )
            
            ---
            
            
            ---Subtotal
                (activities prior to merger)
            
            
            ---
            
            
            ---
            
            
            14,755,771
            
            
            3,502,552
            
            
            ---
            
            
            (855,284
            )
            
            2,647,268Acquisition
                of shares for Xedar Corporation
            
            
            ---
            
            
            ---
            
            
            2,500,072
            
            
            ---
            
            
            ---
            
            
            ---
            
            
            ---Issuance
                of 409,090 shares pursuant to conversion of convertible
                debt
            
            
            ---
            
            
            ---
            
            
            409,090
            
            
            409,090
            
            
            ---
            
            
            ---
            
            
            409,090Acquisition
                of control of Xedar Corporation
            
            
            ---
            
            
            ---
            
            
            (463
            )
            
            (400,000
            )
            
            ---
            
            
            ---
            
            
            (400,000
            )Recognition
                of stock option expense for exchange of options
            
            
            ---
            
            
            ---
            
            
            366,048
            
            
            30,883
            
            
            ---
            
            
            ---
            
            
            30,883Net
                loss
            
            
            ---
            
            
            ---
            
            
            ---
            
            
            ---
            
            
            ---
            
            
            (609,965
            )
            
            (609,965
            )Balance
                - December 31, 2006
            
            
            ---
            
            $
            ---
            
            
            18,030,518
            
            $
            3,542,525
            
            $
            ---
            
            $
            (1,465,249
            )
            $
            2,077,276








See
        Notes
        to Consolidated Financial Statements
   *F
            -
            4*




Xedar
      Corporation


**CONSOLIDATED
      STATEMENTS OF CASH FLOWS**





For
                the Years EndedDecember
                31,2006
            
            2005Cash
                Flows from Operating ActivitiesNet
                income (loss)
            
            $
            (609,965
            )
            $
            13,247Adjustments
                to reconcile net income (loss) to net cash provided by operating
                activitiesDepreciation
            
            
            292,028
            
            
            312,249Loss
                on disposal of property and equipment
            
            
            13,504
            
            
            --Stock
                issued for services
            
            
            32,509
            
            
            --Changes
                in current assets and liabilities:(Increase)
                decrease in:Trade
                accounts receivable
            
            
            278,226
            
            
            (36,050
            )Other
                current assets
            
            
            (22,456
            )
            
            (10,039
            )Increase
                (decrease) in:Accounts
                payable
            
            
            16,880
            
            
            (4,770
            )Accrued
                liabilities
            
            
            (53,217
            )
            
            125,836Deferred
                subscription revenue
            
            
            12,446
            
            
            80,504Net
                Cash Provided (Used) by Operating Activities
            
            
            (40,045
            )
            
            480,977Cash
                Flows from Investing ActivitiesAcquisition
                of property and equipment
            
            
            (54,795
            )
            
            (156,371
            )Proceeds
                from sale of equipment
            
            
            --
            
            
            1,050Net
                Cash Used by Investing Activities
            
            
            (54,795
            )
            
            (155,321
            )Cash
                Flows from Financing ActivitiesProceeds
                from short-term notes payable
            
            
            82,000
            
            
            100,000Payments
                on short-term notes payable
            
            
            (159,500
            )
            
            (300,000
            )Payments
                on long-term notes payable
            
            
            --
            
            
            (90,000
            )Proceeds
                from sale of common stock
            
            
            1,330,000
            
            
            ---Net
                Cash Provided (Used) by Financing Activities
            
            
            1,252,500
            
            
            (290,000
            )





Net
                Increase in Cash
            
            
            1,157,660
            
            
            35,656Cash
                and Cash Equivalents - Beginning of Year
            
            
            196,992
            
            
            161,336Cash
                and Cash Equivalents - End of Year
            
            $
            1,354,652
            
            $
            196,992Supplemental
                Cash Flow DisclosureCash
                paid for interest
            
            $
            752
            
            $
            37,223Cash
                paid for income taxes
            
            
            ---
            
            $
            26,152Payable
                to shareholders for common stock
            
            $
            400,000Conversion
                of debt and interest to common stock
            
            $
            409,090





See
        Notes
        to Consolidated Financial Statements





*F
          -
          5*


**Xedar
      Corporation**


**Notes
      to Consolidated Financial Statements**








**Note
      1 - Description of Business and Summary of Significant Accounting
      Policies**





Nature
      of
      Business


Premier
      Data Services, Inc. began operation in 1994 as a Colorado partnership. On
      January 19, 2001, Premier Data Services, Inc. reorganized as a Delaware
      corporation. In December, 2006, it acquired Xedar Corporation in a reverse
      merger. The
      transaction has been accounted for as a reverse acquisition of Xedar Corporation
      (the “Company”) by Premier Data Services, Inc. and Premier Data Services, Inc is
      deemed to be the purchaser and surviving company for accounting purposes.
      Accordingly, its assets and liabilities are included in the consolidated balance
      sheet at their historical book values and the results of operations of Premier
      Data Services, Inc. have been presented for the comparative prior period. The
      historical cost of the net assets of Xedar Corporation that were acquired was
      $0. Pro forma information is not presented as the financial statements of Xedar
      Corporation are insignificant.





The
      geographical information systems (GIS) segment obtains federal land ownership
      data from the Bureau of Land Management and converts this into a database that
      is sold to oil and gas companies, as well as several agencies of the federal
      government, along with browser software that allows users to easily access
      ownership information about specific parcels of land. This service is offered
      both on compact disc and through an Internet site. Nearly all sales are on
      an
      annual or quarterly subscription basis. Production mapping services are also
      offered to a number of clients.





The
      consulting segment provides contract computer programming and security analysis
      services to various governmental agencies. These services involve the analysis,
      design, and implementation of computer systems for federal and local
      governmental units.





Principles
      of Consolidation and Basis of Presentation


The
      accompanying consolidated financial statements include the accounts of Xedar
      Corporation and its wholly owned subsidiaries, FuGEN, Inc., Premier Data
      Services, Inc. and Land Links Company Ltd. All material inter-company accounts
      and transaction balances have been eliminated in consolidation.





Cash
      and Cash Equivalents


The
      Company considers all highly liquid instruments purchased with an original
      maturity of three months or less to be cash equivalents. The Company continually
      monitors its positions with, and the credit quality of, the financial
      institutions with which it invests. As of the balance sheet dates, and
      periodically throughout the year, the Company has maintained balances in various
      operating accounts in excess of federally insured limits.





Concentrations
      of Credit Risk


The
      Company grants credit in the normal course of business, primarily consisting
      of
      accounts receivable and subscriptions receivable. The Company periodically
      performs credit analyses and monitors the financial condition of its major
      customers to reduce credit risk.





Two
      customers comprised 37% of the Company’s sales for the year ended December 31,
      2006, and comprised 45% of the Company’s accounts receivable at December 31,
      2006. Additionally, one customer comprised 50% of the Company’s sales for the
      same period in 2005.





*F
            -
            6*





**Xedar
      Corporation**


**Notes
      to Consolidated Financial Statements**








Trade
      Accounts Receivable


At
      the
      time the accounts receivable are originated, the Company considers an allowance
      for doubtful accounts. The provision for uncollectible amounts is continually
      reviewed and adjusted to maintain the allowance at a level considered adequate
      to cover future losses. The allowance is management's best estimate of
      uncollectible amounts and is determined based on historical performance that
      is
      tracked by the Company on an ongoing basis. The losses ultimately incurred
      could
      differ materially in the near term from the amounts estimated in determining
      the
      allowance.





Property
      and Equipment


Property
      and equipment are stated at cost. Depreciation is calculated utilizing the
      straight-line method over the estimated useful lives for owned assets or to
      the
      estimated salvage value, where appropriate, or over the related lease terms
      for
      leasehold improvements. Useful lives range from 2 to 10 years.





Goodwill


Goodwill
      is the result of the Company’s acquisition of all the outstanding stock of
      FuGEN, Inc. in 2002. Statement of Financial Accounting Standards (“SFAS”) No.
      142 *,
      Goodwill and Other Intangible Assets* ,
      requires that goodwill be tested for impairment at least annually. These tests
      will be performed more frequently if there is a triggering event indicating
      potential impairment.





SFAS
      No.
      142 prescribes a two-step method for determining goodwill impairment. In the
      first step, the fair value of the reporting unit is determined using a
      discounted cash flows approach. If the net book value of the reporting unit
      exceeds the fair value, then the second part of the impairment test would be
      completed. This involves an allocation of the reporting unit’s fair value to all
      of its assets and liabilities in a manner similar to a purchase price
      allocation, with any residual fair value being allocated to goodwill. The fair
      value of the goodwill is then compared to its carrying amount to determine
      impairment. An impairment charge will be recognized only when the implied fair
      value of a reporting unit’s goodwill is less than its carrying
      amount.





The
      Company completed its annual goodwill tests, using discounted cash flows to
      establish the fair value of the reporting unit, and found no goodwill impairment
      for 2006 or 2005.





Long-Lived
      Assets


The
      Company reviews its long-lived assets for impairment whenever events or changes
      in circumstances indicate that the carrying amount of the asset may not be
      recovered. The Company looks primarily to undiscounted future cash flows in
      its
      assessment of whether or not long-lived assets have been impaired.





Revenue
      Recognition


The
      Company recognizes revenue when all of the following criteria have been met:
      (a)
      persuasive evidence of an arrangement exists, (b) delivery has occurred or
      services have been rendered, (c) the price to the customer is fixed or
      determinable, and (d) collectibility is reasonably assured. The Company’s
      revenue recognition policies are based on the guidance in Staff Accounting
      Bulletin (SAB) No. 104, *Revenue
      Recognition* ,
      and
      Statement of Position (SOP) 97-2, *Software
      Revenue Recognition* .





*F
            -
            7*





**Xedar
      Corporation**


**Notes
      to Consolidated Financial Statements**








*Sales
      of critical information and decision-support tools*





A
      significant proportion of the Company’s revenue is derived from the sale of
      subscriptions to the Company’s oil and gas database, which is recognized ratably
      as delivered over the subscription period.





*Sales
      of services*





The
      Company provides consulting and GIS production services primarily on a time
      and
      materials basis. Revenue related to services performed under time and materials
      contracts is recognized in the period performed, at standard billing rates.
      Revenue associated with fixed-price contracts is recognized upon completion
      of
      each specified performance obligation under the terms of the contract. If the
      contract includes acceptance contingencies, revenue is recognized in the period
      in which the Company receives documentation of acceptance from the
      customer.





Advertising


The
      Company expenses advertising costs as they are incurred. No advertising expense
      was incurred for the years ended December 31, 2006 and December 31,
      2005.





Income
      Taxes


The
      Company provides for income taxes pursuant to the liability method as prescribed
      in SFAS No. 109, *Accounting
      for Income Taxes* .
      The
      liability method requires recognition of deferred income taxes based on
      temporary differences between financial reporting and income tax bases of assets
      and liabilities, using currently enacted income tax rates and
      regulations.





Income
      (Loss) Per Share


Income
      (loss) per share excludes any dilutive effects of options, warrants and dilutive
      securities. Income (loss) per share is computed using the weighted average
      number of common shares outstanding during the period. Diluted earnings per
      share is computed using the weighted average number of common and common stock
      equivalent shares outstanding during the period. Common equivalent shares of
      1,771,930 and 157,622 are excluded from the computation of diluted earnings
      per
      share for 2006 and 2005, respectively, because their effect is anti-dilutive.
      The income (loss) per share are shown pro forma, as though the reverse
      acquisition took place on January 1, 2005.





Use
      of
      Estimates


The
      preparation of financial statements in conformity with accounting principles
      generally accepted in the United States of America requires management to make
      estimates and assumptions that affect the reported amounts of assets and
      liabilities, disclosures of contingent assets and liabilities at the date of
      the
      financial statements and the reported amounts of revenues and expenses during
      the reporting period. Actual results could differ from those
      estimates.





*F
          -
          8*




**Xedar
      Corporation**


**Notes
      to Consolidated Financial Statements**








Stock-Based
      Compensation


Prior
      to
      January 1, 2006, Premier Data Services, Inc. accounted for its stock option
      program under the recognition and measurement provisions of APB Opinion No.
      25
      (“APB 25”), *Accounting
      for Stock Issued to Employees* ,
      and
      related Interpretations, as permitted by FASB Statement No. 123 (“SFAS 123”), *Accounting
      for Stock-Based Compensation* .
      No
      stock based compensation cost was recognized in the Statement of Operations
      for
      the year ended December 31, 2005, as all options granted under the plan had
      an
      exercise price equal to the market value of the underlying common stock on
      the
      date of grant.




During
      2006, Premier Data Services, Inc. adopted the provisions of and accounted for
      stock-based compensation in accordance with SFAS 123R, which replaced SFAS
      123
      and supersedes APB 25. Under the fair value recognition provisions of this
      statement, stock-based compensation cost is measured at the grant date based
      on
      the fair value of the award and is recognized as expense on a straight-line
      basis over the requisite service period, which is the vesting period. Premier
      Data Services, Inc. elected the modified-prospective method, under which prior
      periods are not revised for comparative purposes. The valuation provisions
      of
      SFAS 123R apply to new grants and to grants that were outstanding as of the
      effective date and are subsequently modified. Estimated compensation for grants
      that were outstanding as of the effective date will be recognized over the
      remaining service periods using the compensation cost estimated for the SFAS
      123
      pro forma disclosures. Compensation expense for warrants granted to
      non-employees has been determined in accordance with SFAS No. 123R as the fair
      value of the consideration received or the fair value of the equity instruments
      issued, whichever is more reliably measured.





The
      adoption of SFAS 123R resulted in the recognition of $30,883 of compensation
      cost during the year ended December 31, 2006. The amount of unrecognized
      compensation cost relating to options issued but not yet vested amounted to
      $13,729 as of December 31, 2006, all of which is expected to be expended during
      2007. See Note 9 for further information regarding stock-based compensation
      assumptions and expenses, including pro forma disclosures for the year ended
      December 31, 2006 and 2005 as if Premier Data Services, Inc. had recorded
      stock-based compensation expense.





Recent
      Accounting Pronouncements


In
      September 2006, the FASB issued SFAS No. 157, *"Fair
      Value Measurements,"* which
      enhances existing guidance for measuring assets and liabilities at fair value.
      SFAS No. 157 defines fair value, establishes a framework for measuring fair
      value and expands disclosure about fair value measurements. SFAS
      No. 157 is
      effective for the Company beginning in 2007. The Company is currently assessing
      the impact of the adoption of SFAS No. 157, but does not expect that it
      will have a significant impact on its financial position or results of
      operations.





In
      September 2006, the SEC issued Staff Accounting Bulletin ("SAB")
      No. 108, " *Considering
      the Effects of Prior Year Misstatements when Quantifying Misstatements in
      Current Year Financial Statements.* "
      SAB
      No. 108 requires that companies utilize a "dual-approach" to assessing the
      quantitative effects of financial statement misstatements. The dual approach
      includes both an income statement focused and balance sheet focused assessment.
      SAB No. 108 is applicable beginning in 2007. The Company is currently
      assessing the impact of the adoption of SAB No. 108, but does not expect
      that it will have a significant impact on its financial position or results
      of
      operations.





*F
            -
            9*





**Xedar
      Corporation**


**Notes
      to Consolidated Financial Statements**








In
      June 2006, the FASB issued FIN No. 48, *"Accounting
      for Uncertainty in Income Taxes—an interpretation of FASB Statement
      No. 109."* This
      Interpretation prescribes a comprehensive model for the financial statement
      recognition, measurement, presentation and disclosure of uncertain tax positions
      taken or expected to be taken in income tax returns. FIN
      No. 48 is
      effective for the Company beginning in 2007. The Company is currently assessing
      the impact of the adoption of FIN No. 48, but does not expect that it will
      have a significant impact on its financial position or results of
      operations.





**Note
      2 - Property and Equipment**


Property
      and equipment consist of the following:





December
                31,2006Furniture
                and fixtures
            
            $
            71,796Office
                equipment
            
            
            66,306Computer
                equipment
            
            
            434,806Software
            
            
            434,218Leasehold
                improvements
            
            
            12,7951,019,921Less
                accumulated depreciation
            
            
            (730,942
            )$
            288,979





Depreciation
      and amortization expense for the years ended December 31, 2006 and 2005 was
      $292,028 and $312,249, respectively, and is included in other selling and
      administrative expenses of the statement of operations.





**Note
      3 - Accrued Liabilities**


Accrued
      liabilities consist of the following:





December
                31,2006Accrued
                compensation
            
            $
            95,803Other
                accrued liabilities
            
            
            22,460Totals
            
            $
            118,263





**Note
      4 - Related Party Transactions**


During
      2006, the Company borrowed $82,000 from an officer of the Company. All amounts
      borrowed were paid in full by December 31, 2006. Interest expense incurred
      on
      the borrowings was $752 in 2006.





As
      discussed in Note 8, the Company acquired shares from a shareholder for $400,000
      and the amount is included in accounts payable to shareholders in the
      accompanying consolidated balance sheet at December 31, 2006. The balance was
      paid in January 2007.





*F
            -
            10*





**Xedar
      Corporation**


**Notes
      to Consolidated Financial Statements**








**Note
      5 - Convertible Notes Payable to Related Parties**


Convertible
      notes payable to related parties consist of:





December
                31,2006Convertible
                Note Payable - Affiliated company of shareholder - due in monthly
                installments of $5,402 including interest at 8 1⁄2% per annum, maturing in
                2009.
            
            $
            207,079Convertible
                Note Payable - Shareholder, due in monthly installments of $4,598
                including interest at 8 1⁄2% per annum, maturing in 2009.
            
            
            176,259383,338Less
                current maturities
            
            
            383,338Long-term
                notes payable to related parties
            
            $
            --





The
      Company had notes payable to an affiliate company of a shareholder and a
      shareholder. In December 2006, the holders of these notes converted a total
      of
      $309,927 of interest payable and $99,163 of principal into 409,090 shares of
      common stock at $1.00 per share. This conversion rate was based on the fair
      value of the stock after the recapitalization, in accordance with the original
      agreement. The remaining balance on the notes was cancelled and the Company
      issued a new note payable for the remaining balance. These notes payable are
      collateralized by a security interest in all assets of the Company .
      The
      holders of these notes have the option to convert all remaining amounts due
      (both principal and interest) to common stock at $1.00 per share adjusted for
      all stock splits, stock dividends, combinations of shares, recapitalizations,
      reclassifications or similar events. There was not a beneficial conversion
      feature when the notes were issued.





**Note
      6 - Income Taxes**


The
      Company’s provision for income taxes is as follows:





12/31/2006
            
            12/31/2005Current
                provision:Federal
            
            ---
            
            ---State
                and local
            
            
            (16,621
            )
            
            32,604Total
                current provision
            
            
            (16,621
            )
            
            32,604Deferred
                tax expense (benefit):Federal
            
            
            ---
            
            
            ---State
                and local
            
            
            ---
            
            
            ---Total
                deferred tax expense (benefit)
            
            
            ---
            
            
            ---Income
                tax expense (benefit)
            
            
            (16,621
            )
            
            32,604





The
      provision for income taxes differs from that which would have resulted from
      the
      use of the federal statutory income tax rate as follows:





*F
            -
            11*





**Xedar
      Corporation**


**Notes
      to Consolidated Financial Statements**








12/31/2006
            
            12/31/2005Federal
                income tax provision
              as
                statutory rate of 34%
            
            
            (213,089
            )
            
            25,217State
                income taxes, net offederal
                benefit
            
            
            (16,621
            )
            
            32,604Permanent
                items
            
            
            5,873
            
            
            7,799Change
                in valuation allowance
            
            
            207,166
            
            
            (33,016
            )(16,621
            )
            
            32,604





The
      significant items comprising the Company’s deferred tax assets and liabilities
      as of December 31, 2006 and December 31, 2005 are as follows:





12/31/2006
            
            12/31/2005Deferred
                tax assets (liabilities) - current:Accrued
                liabilities
            
            $
            27,124
            
            $
            29,254Allowance
                for doubtful accounts
            
            
            2,276
            
            
            7,994Net
                deferred tax asset (liability) - current
            
            
            29,399
            
            
            37,248Deferred
                tax assets (liabilities) - non-currentNet
                operating loss
            
            
            944,443
            
            
            807,094Amortization
                intangibles
            
            
            97,498
            
            
            107,489Fixed
                assets
            
            
            (38,811
            )
            
            (108,722
            )Net
                deferred tax liability non-current
            
            
            1,003,130
            
            
            805,861Valuation
                allowance
            
            
            (1,032,530
            )
            
            (843,109
            )Net
                deferred tax asset (liability)
            
            
            ---
            
            
            ---





Effective
      January 31, 2001, the Company converted from partnership status and became
      a “C”
corporation for income tax reporting. As a “C” corporation, the Company is
      subject to corporate income taxes.





Income
      taxes are provided for the tax effects of the transactions reported in the
      financial statements and consist of taxes currently due plus deferred taxes
      related primarily to temporary differences between the bases of certain assets
      and liabilities for financial and tax reporting. The differences will be either
      deductible or taxable when the assets and liabilities are recovered or
      settled.





The
      Company has an income tax loss carryforward of approximately $2,130,000 as
      of
      December 31, 2006 that may be offset against future income taxes. Of this amount
      $1,263,000 at December 31, 2006, is from a subsidiary, FuGEN, Inc., and is
      subject to an annual limitation of $73,400, resulting from a change in
      ownership. If not used, these loss carryforwards will expire in various amounts
      from 2020 to 2023. A valuation allowance has been recorded against the expected
      future reduction in income tax from the tax loss carryforwards.





*F
            -
            12*





**Xedar
      Corporation**


**Notes
      to Consolidated Financial Statements**








**Note
      7 - Commitments**





Operating
      Leases


The
      Company leases facilities under non-cancelable operating leases expiring in
      2008
      and 2009. Rent expense for the years ended December 31, 2006 and 2005 was
      $244,967 and $251,712, respectively.





Future
      minimum lease payments under these leases are approximately as follows (in
      thousands):





Year
                Ending December 31,
            
            Operating
                Leases2007
            
            $
            259,3022008
            
            
            166,8142009
            
            
            41,6302010
            
            
            02011
            
            
            0Thereafter
            
            
            0Total
                at December 31, 2006
            
            $
            467,746





**Note
      8 - Series A Convertible Preferred Stock**




Effective
      December 31, 2006 Premier Data Services, Inc. was acquired by Xedar Corporation
      in a transaction that has been accounted for as a reverse acquisition.
      Immediately prior to the transaction, Premier Data Services, Inc. had 3,162,941
      shares of preferred and 13,776,270 shares of common stock outstanding. These
      shares were converted into an equivalent number of 14,755,751 Xedar Corporation
      common shares.





At
      the
      same time Premier Data Services, Inc. acquired 463 shares of Xedar Corporation
      common stock from controlling shareholders of Xedar for $400,000 which is
      included as a payable to shareholders on the consolidated balance sheet. The
      $400,000 payable was paid in January 2007. This purchase has been reflected
      as a
      reduction of common stock since Xedar Corporation was a public shareholder
      with
      no ascertainable goodwill in the transaction. Premier Data Services, Inc. then
      issued 2,500,072 shares of common stock to acquire the remaining shareholders
      of
      Xedar Corporation to complete the acquisition. These shares were valued at
      zero
      since there was no ascertainable value to the public shareholders.





After
      the
      transaction and as discussed in Note 9, on December 31, 2006, a portion of
      the
      outstanding options and all outstanding warrants of Premier Data Services,
      Inc.
      were exchanged for 366,048 shares of Xedar Corporation. Additionally, as
      discussed in Note 5, a related party agreed to convert $409,090 of debt into
      409,090 shares of common stock at $1.00 per share.








*F
            -
            13*





**Xedar
      Corporation**


**Notes
      to Consolidated Financial Statements**








**Note
      9 - Stock Option Plan**




Premier
      Data Services, Inc. established an incentive stock option plan for which
      2,000,000 shares of its common stock have been set aside. The plan set the
      exercise price for employees who are less than 10% shareholders at $0.487694
      for
      2001; $0.243847 for 2002; $0.59567 for 2003; $0.91719 and $.66932 for two
      separate grants during 2004; and $0.98747 for 2005; and for employees who are
      10% and over shareholders at an exercise price that is 10% higher. The option
      grants immediately vested. The vesting schedule for remaining options granted
      prior to 2005 was 1/3 after one year, 1/3 after two years and the final 1/3
      after the third year. Retention options awarded in 2005 vested 1⁄2 after one year
      and 1⁄2 after two years.





Premier
      Data Services, Inc. granted 220,622 options during 2005. There were 254,298
      options not yet granted as of December 31, 2005. Additionally, Premier Data
      Services, Inc. amended the plan on March 21, 2002, to grant its stock options
      for stock options of FuGEN, Inc. that employees of FuGEN, Inc. had previously
      received. These newly amended options totaled 849,198 at a price of $0.68 per
      share and the same vesting schedule as previously issued stock options, giving
      benefit to all prior service of FuGEN, Inc. employees.





During
      December 2006, the Company exchanged 1,550,717 options and 333,360 warrants
      from
      the option and warrant holders, respectively, for 366,048 shares of the
      Company’s restricted common stock. 76,000 options remain outstanding. All
      warrants have been exchanged. As
      a
      result of this exchange, the Company recognized $30,833 of compensation expense
      which represents the remaining pro forma expense to be recognized as of the
      date
      of exchange.





For
      the
      year ended December 31, 2005, Premier Data Services, Inc. has adopted the
      disclosure-only provisions of Statement of Accounting Standards No. 123,
      Accounting for Stock-Based Compensation. Accordingly, no compensation cost
      has
      been recognized for the stock option plans. Had compensation costs for Premier
      Data Services, Inc.’s stock option plans been determined based on the fair value
      at the grant date for awards during the period ended December 31, 2005 in
      accordance with the provisions of SFAS No. 123, the Company’s net loss and loss
      per share would have been increased to the pro forma amounts indicated
      below:





2005Net
                income - as reported
            
            $
            13,247Net
                loss - pro forma
            
            $
            (97,512
            )Basic
                income per share - as reported
            
            $
            0.001Basic
                loss per share - pro forma
            
            $
            (0.008
            )Fully
                diluted income per share - as reported
            
            $
            0.001Fully
                diluted loss per share - pro forma
            
            $
            (0.008
            )





The
      fair
      value of each option grant is estimated on the date of grant using the
      Black-Scholes option-pricing model with the following weighted-average
      assumptions used for grants in 2005; dividend yield of 0%, expected volatility
      of 216%; risk-free interest rate of 4.12%; and expected life of 5.29 years.
      The
      weighted average grant date fair value of options was $0.99 for
      2005.








*F
            -
            14*





**Xedar
      Corporation**


**Notes
      to Consolidated Financial Statements**








The
      following is a summary of stock option and warrant activity:





Option
                Price
              Per
                Share
            Weighted
                Average
              Exercise
                Price
            
            Number
                of SharesBalance,
                December 31, 2004
            $0.24
                to $0.92
            $0.60
            
            1,484,725Canceled
            $0.24
                to $0.68
            $0.65
            
            (24,645)Granted
            $0.99
            $0.99
            
            220,622Exercised
            ---
            $0.00
            
            ---Balance,
                December 31, 2005
            $0.24
                to $0.99
            $0.65
            
            1,680,702Canceled
            $0.68
                to $0.99
            $0.85
            
            (43,985)Repurchased
            $0.24
                to $0.99
            $0.64
            
            (1,550,717)Exercised
            $0.24
            $0.24
            
            (10,000)Balance,
                December 31, 2006
            $0.24
                to $0.99
            $0.65
            
            76,000







Stock
                Warrants
            Warrant
                Price
              Per
                Share
            Weighted
                Average
              Exercise
                Price
            
            Number
                of SharesBalance,
                December 31, 2003 through December 31, 2005
            $0.49
            $0.49
            
            333,360Repurchased
            $0.49
            $0.49
            
            (333,360)Balance,
                December 31, 2006
            
            
            
            ---







The
      weighted average exercise prices of stock options and warrants exercisable
      at
      each period end are as follows:





Option
                Price
              Per
                Share
            Weighted
                Average
              Exercise
                Price
            Number
                of
              SharesDecember
                31, 2005
            $0.24
                to $0.99
            $0.64
            1,617,702December
                31, 2006
            $0.68
                to $0.99
            $0.81
            61,250







The
      following is additional information with respect to those options outstanding
      at
      December 31, 2006:





Option
                Exercise
              Price
                per Share
            Weighted
                Average
              ContractualLife
                in Years
            Weighted
                Average Exercise Price
            Number
                of Shares$0.68
            5.2
            $0.68
            35,000$0.99
            8.4
            $0.99
            41,00076,000








*F
            -
            15*





**Xedar
      Corporation**


**Notes
      to Consolidated Financial Statements**








During
      2006, Premier Data Services, Inc. adopted Statement of Financial Accounting
      Standards No. 123 (Revised). This new statement requires that compensation
      expense be recorded for the value of stock options granted. Premier Data
      Services, Inc. has elected to apply the modified prospective application whereby
      the financial statements for the years ended December 31, 2005 and 2004 have
      not
      been changed and the disclosures for those periods are consistent with Statement
      of Financial Accounting Standards No. 123.





No
      stock
      options were granted during 2006. As a result, pro forma compensation expense
      for stock options relates to the prior years’ stock options granted but not yet
      vested at December 31, 2005. The amount of unrecognized compensation cost
      relating to options granted but not yet vested amounted to $13,729 as of
      December 31, 2006, all of which is expected to be expended during
      2007.





**Note
      10 - Employee Benefit Plan**


The
      Company has a 401(k) plan, which covers most of the employees with over 90
      days
      of service. The plan provides for full vesting after 90 days in the plan. The
      Company’s contribution rate is 50% of employee contributions up to a limit of
      $1,000 per employee per year. The Company follows the policy of funding the
      plan
      contributions as accrued.





Contributions
      to the plan by Premier Data Services, Inc. were approximately $42,000 and
      $40,000 for the years ended December 31, 2006 and 2005,
      respectively.





**Note
      11 - Segment Information**


The
      Company managed its business and aggregates its operational and financial
      information in accordance with four reportable segments. Its consulting segment
      provides independent verification and validation (IV&V) and information
      assurance on large projects within several federal agencies. Its geographical
      information systems (GIS) segment provides government and oil and gas customers
      with a combination of land database products and production services related
      to
      the creation or enhancement of land records. Its customer relationship
      management segment provided software maintenance support, and was sold in
      November 2006. Its justice information systems segment created and installed
      court case management systems, and was folded into the consulting segment at
      the
      end of 2006.








*F
            -
            16*





**Xedar
      Corporation**


**Notes
      to Consolidated Financial Statements**








Financial
      information for the Company’s business segments was as follows (in
      thousands):


As
                of December 312006
            
            2005Revenue:Consulting
            
            $
            3,299
            
            $
            4,888Customer
                relationship management
            
            
            182
            
            
            374Geographical
                information systems
            
            
            2,434
            
            
            2,478Justice
                information systems
            
            
            322
            
            
            120Total
            
            $
            6,237
            
            $
            7,860Income
                (Loss) from operations:Consulting
            
            $
            175
            
            $
            1,085Customer
                relationship management
            
            
            (87
            )
            
            51Geographical
                information systems
            
            
            350
            
            
            93Justice
                information systems
            
            
            (261
            )
            
            (475
            )Corporate
                expenses
            
            
            (787
            )
            
            (741
            )Total
            
            $
            (610
            )
            $
            13Identifiable
                fixed assets:Consulting
            
            
            157
            
            $
            156Geographical
                information systems
            
            
            735
            
            
            710Customer
                relationship management
            
            
            0
            
            
            417Justice
                information systems
            
            
            77
            
            
            75Other
            
            
            51
            
            
            52Less:
                accumulated depreciation
            
            
            (731
            )
            
            (870
            )Total
            
            $
            289
            
            $
            540Depreciation
                and amortization:Consulting
            
            $
            37
            
            $
            58Geographical
                information systems
            
            
            126
            
            
            131Other
            
            
            129
            
            
            123Total
            
            $
            292
            
            $
            312





Total
      asset data is not provided to the chief operating decision maker and therefore
      is not detailed above.





**Note
      12 - Subsequent Events**


On
      January 1, 2007, we acquired Land Links Company Ltd., which compiles information
      for and related to the geographic coordinate database, for 360,000 shares of
      common stock. This acquisition does not meet the significance tests and the
      financial statements are not included in this filing.








*F
            -
            17*





**Xedar
      Corporation**


**Notes
      to Consolidated Financial Statements**








On
      March
      1, 2007, we completed the sale of its justice information systems (“JIS”)
      division to Justice Systems, Inc. for approximately $140,000 in cash, of which
      $75,000 was for the underlying business assets and $65,000 was for a six-month
      service contract to support the transition of the JIS division to Justice
      Systems, Inc. There was no material relationship between the Company and Justice
      Systems, Inc. prior to the disposition of JIS division assets.





On
      January 9, 2007, we entered into consulting arrangements with Livestrong Venture
      Capital Partners, Inc., C.C.R.I. Corporation, and Capital Group Communications
      for a term of twelve months, pursuant to which we issued to 500,000 shares
      of
      our common stock to Livestrong Venture Capital Partners, Inc., 200,000 shares
      of
      our common stock to C.C.R.I. Corporation, and 500,000 shares of our common
      stock
      to Capital Group Communications as consideration for investor relations and
      financial consulting services to be provided.








*F
          -
          18*





**Item
      8. Changes In and Disagreements With Accountants on Accounting and Financial
      Disclosure.**




None.





**Item
      8A. Controls and Procedures.**




Introduction


"Disclosure
      Controls and Procedures" are defined in Securities Exchange Act of 1934 Rules
      13a-15(e) and 15d-15(e) as the controls and procedures of an issuer that are
      designed to ensure that information required to be disclosed by the issuer
      in
      the reports that it files or submits under the Exchange Act is recorded,
      processed, summarized and reported, within the time period specified by the
      SEC's rules and forms. Disclosure Controls and Procedures include, among other
      things, controls and procedures designed to ensure that information required
      to
      be disclosed by us in the reports that we file or submit under the Exchange
      Act
      is accumulated and communicated to our management, including our principal
      executive and principal financial officers, as appropriate, to allow timely
      decisions regarding disclosure.





"Internal
      Control Over Financial Reporting" is defined in Exchange Act Rules 13a-15(f)
      and
      15d-15(f) as a process designed by, or under the supervision of, an issuer's
      principal executive and principal financial officers, or persons performing
      similar functions, and effected by an issuer's board of directors, management
      and other personnel, to provide reasonable assurance regarding the reliability
      of financial reporting and the preparation of financial statements for external
      purposes in accordance with generally accepted accounting principles. It
      includes those policies and procedures that (1) pertain to the maintenance
      of
      records that in reasonable detail accurately and fairly reflect the transactions
      and disposition of an issuer; (2) provide reasonable assurance that transactions
      are recorded as necessary to permit preparation of financial statements in
      accordance with generally accepted accounting principles, and that receipts
      and
      expenditures of the issuer are being made only in accordance with authorizations
      of management and directors of the issuer; and (3) provide reasonable assurance
      regarding prevention or timely detection of unauthorized acquisition, use or
      disposition of the issuer's assets that could have a material adverse effect
      on
      the financial statements.





We
      have
      endeavored to design our Disclosure Controls and Procedures and Internal
      Controls Over Financial Reporting to provide reasonable assurances that their
      objectives will be met. All control systems are subject to inherent limitations,
      such as resource constraints, the possibility of human error, lack of knowledge
      or awareness, and the possibility of intentional circumvention of these
      controls. Furthermore, the design of any control system is based, in part,
      upon
      assumptions about the likelihood of future events, which assumptions may
      ultimately prove to be incorrect. As a result, no assurances can be made that
      our control system will detect every error or instance of fraudulent conduct,
      which could have a material adverse impact on our results of operations or
      financial condition.





Evaluation
      of Disclosure Controls and Procedures


Our
      management, with the participation of our Chief Executive Officer and Chief
      Financial Officer, has evaluated the effectiveness of our Disclosure Controls
      and Procedures as of the end of the period covered by this report. Based on
      this
      evaluation, our Chief Executive Officer and Chief Financial Officer have
      concluded that our Disclosure Controls and Procedures as of the end of the
      period covered by this report were designed to ensure that material information
      relating to us is made known to the Chief Executive Officer and Chief Financial
      Officer by others within us, particularly during the period in which this report
      was being prepared, and that our Disclosure Controls and Procedures were
      effective. There were no changes to our Internal Controls Over





*-
            19
            -*





Financial
      Reporting during the year ended December 31, 2006 that have materially affected
      or are reasonably likely to materially affect our Internal Controls Over
      Financial Reporting.





**Item
      8B. Other Information.**




None.





**Part
      III**





**Item
      9. Directors, Executive Officers, Promoters, Control Persons and Corporate
      Governance; Compliance with Section 16(a) of the Exchange
      Act.**




Information
      with respect to our directors and executive officers is hereby incorporated
      by
      reference to our proxy statement, which definitive proxy statement will be
      filed
      with the SEC within 120 days after the end of the fiscal year to which this
      report relates




We
      have
      adopted a code of ethics that applies to our principal executive officer,
      principal financial officer, principal accounting officer or controller and
      persons performing similar functions. The code of ethics is posted on our web
      site at www.xedarinc.com . Any
      amendments to or waivers from a provision of this code of ethics will be posted
      on our web site.





**Item
      10. Executive Compensation.**




Information
      with respect to executive compensation is hereby incorporated by reference
      to
      our proxy statement, which definitive proxy statement will be filed with the
      SEC
      within 120 days after the end of the fiscal year to which this report
      relates.





**Item
      11. Security Ownership of Certain Beneficial Owners and Management and Related
      Stockholder Matters.**




Information
      with respect to the security ownership of certain beneficial owners and
      management and related stockholder matters is hereby incorporated by reference
      to our proxy statement, which definitive proxy statement will be filed with
      the
      SEC within 120 days after the end of the fiscal year to which this report
      relates.





**Item
      12. Certain Relationships and Related Transaction, and Director
      Independence.**




Information
      with respect to certain relationships and related transaction and director
      independence is hereby incorporated by reference to our proxy statement, which
      definitive proxy statement will be filed with the SEC within 120 days after
      the end of the fiscal year to which this report relates.





**Item
      13. Exhibits**





Number
            Description2.1
            Agreement
                and Plan of Merger, effective December 31, 2006, by and among Xedar
                Corporation, a Colorado corporation, PDS Acquisition Corp., a Colorado
                corporation, and Premier Data Services, Inc., a Delaware corporation
                (incorporated by reference to Exhibit 2.1 of our Current Report on
                Form
                8-K filed January 5, 2007).3.1
            Articles
                of Incorporation of Xedar Corporation, dated May 6, 1974 (incorporated
                by
                reference to Exhibit 3.1 of our Current Report on Form 8-K filed
                January
                5, 2007)3.2
            Articles
                of Amendment of Xedar Corporation, dated November 26, 1974 (incorporated
                by reference to Exhibit 3.2 of our Current Report on Form 8-K filed
                January 5, 2007)3.3
            Articles
                of Amendment of Xedar Corporation, dated July 23, 1979 (incorporated
                by
                reference to Exhibit 3.3. of our Current Report on Form 8-K filed
                January
                5, 2007)3.4
            Articles
                of Amendment of Xedar Corporation, dated September 29, 2004 (incorporated
                by reference to Exhibit 3.4 of our Current Report on Form 8-K filed
                January 5, 2007)3.5
            Articles
                of Amendment of Xedar Corporation, dated December 12, 2005 (incorporated
                by reference to Exhibit 3.5 of our Current Report on Form 8-K filed
                January 5, 2007)3.6
            Articles
                of Amendment of Xedar Corporation, dated December 18, 2006 (incorporated
                by reference to Exhibit 3.6 of our Current Report on Form 8-K filed
                January 5, 2007)3.7
            Bylaws
                of Xedar Corporation, dated December 29, 2006 (incorporated by reference
                to Exhibit 3.7 of our Current Report on Form 8-K filed January 5,
                2007)10.1
            Interest
                Purchase Agreement, dated January 1, 2007, by and between David M.
                King,
                Glen W. Thurow, and PDS GIS/LIS, Inc. (incorporated by reference
                to
                Exhibit 10.1 of our Current Report on Form 8-K filed January 5,
                2007)10.2
            Stock
                Purchase Agreement, dated December 29, 2006, by and among Underwood
                Family
                Partners, Ltd., Battersea Capital, Inc., Kanouff LLC, and Xedar
                Corporation (incorporated by reference to Exhibit 10.2 of our Current
                Report on Form 8-K filed January 5, 2007)10.3
            Purchase
                Agreement, dated February 20, 2007, by and between Premier Data Services,
                Inc., a Delaware corporation, and Justice Systems, Inc., a New Mexico
                corporation (incorporated by reference to Exhibit 10.1 of our Current
                Report on Form 8-K filed February 26, 2007)10.4
            Consulting
                Services Agreement, dated February 20, 2007, by and between Premier
                Data
                Services, Inc., a Delaware corporation, and Justice Systems, Inc.,
                a New
                Mexico corporation (incorporated by reference to Exhibit 10.1 of
                our
                Current Report on Form 8-K filed February 26, 2007)14.1*
            Code
                of Ethics21.1*
            Subsidiaries31.1*
            Certification
                of President and Chief Executive Officer required by Rule
                13a-14(a)31.2*
            Certification
                of Chief Financial Officer required by Rule 13a-14(a)32.1*
            Certification
                of President and Chief Executive Officer required by Section 906
                of the
                Sarbanes-Oxley Act of 200232.2*
            Certification
                of Chief Financial Officer required by Section 906 of the Sarbanes-Oxley
                Act of 2002


________




*
      Filed
      herewith.





**Item
      14. Principal Accountant Fees and Services.**




Information
      with respect to principal accountant fees and services is hereby incorporated
      by
      reference to our proxy statement, which definitive proxy statement will be
      filed
      with the SEC within 120 days after the end of the fiscal year to which this
      report relates.








*-
            20
            -*





**Signatures**





In
      accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused
      this report to be signed on its behalf by the undersigned, thereunto duly
      authorized.






Xedar
              CorporationBy:
            /s/ Hugh
              H. Williamson IIIHugh H. Williamson III
              President and Chief Executive Officer





In
      accordance with the Exchange Act, this report has been signed below by the
      following persons on behalf of the registrant and in the capacities and on
      the
      dates indicated.





Signature
            
            Title
            
            Date/s/
                Hugh H. Williamson III
              Hugh
                H. Williamson, III
            
            President,
                Chief Executive Officer and Director (Chair)
            
            March
                14, 2007/s/
                Steven M. Bragg
                Steven
                M. Bragg
            
            Chief
                Financial Officer, Treasurer and Secretary
            
            March
                14, 2007/s/
                Samuel J. Camarata, Jr.
                Samuel
                J. Camarata, Jr.
            
            Director
            
            March
                15, 2007Jack
                H. Jacobs
              Jack
                H. Jacobs
            
            DirectorTrusten
                A. McArtor
              Trusten
                A. McArtor
            
            Director/s/
                John P. Moreno
                John
                P. Moreno
            
            Director
            
            March
                15, 2007/s/
                Craig A. Parker
                Craig
                A. Parker
            
            Director
            
            March
                14, 2007/s/
                Roger J. Steinbecker
                Roger
                J. Steinbecker
            
            Director
            
            March
                15, 2007







*-
            21
            -*





**Exhibit
      Index**





Number
            Description2.1
            Agreement
                and Plan of Merger, effective December 31, 2006, by and among Xedar
                Corporation, a Colorado corporation, PDS Acquisition Corp., a Colorado
                corporation, and Premier Data Services, Inc., a Delaware corporation
                (incorporated by reference to Exhibit 2.1 of our Current Report on
                Form
                8-K filed January 5, 2007).3.1
            Articles
                of Incorporation of Xedar Corporation, dated May 6, 1974 (incorporated
                by
                reference to Exhibit 3.1 of our Current Report on Form 8-K filed
                January
                5, 2007)3.2
            Articles
                of Amendment of Xedar Corporation, dated November 26, 1974 (incorporated
                by reference to Exhibit 3.2 of our Current Report on Form 8-K filed
                January 5, 2007)3.3
            Articles
                of Amendment of Xedar Corporation, dated July 23, 1979 (incorporated
                by
                reference to Exhibit 3.3. of our Current Report on Form 8-K filed
                January
                5, 2007)3.4
            Articles
                of Amendment of Xedar Corporation, dated September 29, 2004 (incorporated
                by reference to Exhibit 3.4 of our Current Report on Form 8-K filed
                January 5, 2007)3.5
            Articles
                of Amendment of Xedar Corporation, dated December 12, 2005 (incorporated
                by reference to Exhibit 3.5 of our Current Report on Form 8-K filed
                January 5, 2007)3.6
            Articles
                of Amendment of Xedar Corporation, dated December 18, 2006 (incorporated
                by reference to Exhibit 3.6 of our Current Report on Form 8-K filed
                January 5, 2007)3.7
            Bylaws
                of Xedar Corporation, dated December 29, 2006 (incorporated by reference
                to Exhibit 3.7 of our Current Report on Form 8-K filed January 5,
                2007)10.1
            Interest
                Purchase Agreement, dated January 1, 2007, by and between David M.
                King,
                Glen W. Thurow, and PDS GIS/LIS, Inc. (incorporated by reference
                to
                Exhibit 10.1 of our Current Report on Form 8-K filed January 5,
                2007)10.2
            Stock
                Purchase Agreement, dated December 29, 2006, by and among Underwood
                Family
                Partners, Ltd., Battersea Capital, Inc., Kanouff LLC, and Xedar
                Corporation (incorporated by reference to Exhibit 10.2 of our Current
                Report on Form 8-K filed January 5, 2007)10.3
            Purchase
                Agreement, dated February 20, 2007, by and between Premier Data Services,
                Inc., a Delaware corporation, and Justice Systems, Inc., a New Mexico
                corporation (incorporated by reference to Exhibit 10.1 of our Current
                Report on Form 8-K filed February 26, 2007)10.4
            Consulting
                Services Agreement, dated February 20, 2007, by and between Premier
                Data
                Services, Inc., a Delaware corporation, and Justice Systems, Inc.,
                a New
                Mexico corporation (incorporated by reference to Exhibit 10.1 of
                our
                Current Report on Form 8-K filed February 26, 2007)14.1*
            Code
                of Ethics21.1*
            Subsidiaries31.1*
            Certification
                of President and Chief Executive Officer required by Rule
                13a-14(a)31.2*
            Certification
                of Chief Financial Officer required by Rule 13a-14(a)32.1*
            Certification
                of President and Chief Executive Officer required by Section 906
                of the
                Sarbanes-Oxley Act of 200232.2*
            Certification
                of Chief Financial Officer required by Section 906 of the Sarbanes-Oxley
                Act of 2002






Filed
      herewith.