Mr. Eugene Woychyshyn reports

NXT ENERGY SOLUTIONS ANNOUNCES SECOND QUARTER 2023 RESULTS

NXT Energy Solutions Inc. has released its financial and operating results for the three and six months ended June 30, 2023.

Financial and operating highlights

Key financial and operational highlights are summarized below:

• On May 24, the company entered into a 10-year strategic alliance in Africa with Synergy E&P Technologies Ltd., which grants Synergy an exclusive licence to use, distribute, sublicence, market and sell NXT's SFD solutions in Africa;
• At the same time, the company entered into a $2.3-million (U.S.) convertible debenture financing with Ataraxia Capital, an affiliate of Synergy. On May 31, 2023, the company received its first tranche of $1.2-million (U.S.) from Ataraxia. The company received an additional $200,000 (U.S.) tranche on July 10, 2023, for a total of $1.4-million (U.S.) to date. The remaining commitment of $900,000 (U.S.) is expected to be received during the third quarter of 2023;
• In June, Bruce G. Wilcox was appointed as interim chief executive officer of the company;
• Cash at June 30, 2023, was $1.05-million;
• Net working capital was negative $2.35-million at June 30, 2023;
• The company recorded SFD-related revenues of nil;
• A net loss of $1.71-million was recorded for Q2 2023, including stock-based compensation expense (SBCE) and amortization expense of $510,000;
• A net loss of $3.32-million was recorded for YTD 2023, including SBCE and amortization expense of $1.02-million;
• Net loss per common share for Q2 2023 was two cents basic and diluted, and for YTD 2023 was four cents basic and diluted;
• Cash flow used in operating activities was $1.01-million during Q2 2023 and $2.41-million YTD 2023;
• General and administrative (G&A) expenses decreased by $100,000 (10 per cent) in Q2 2023 as compared with Q2 2022, and G&A expenses decreased by $160,000 (8 per cent) in YTD 2023 as compared with YTD 2022.

Summary highlights of NXT's 2023 second quarter financial statements (with comparative figures to 2022) are noted in the associated table. All selected and referenced financial information noted herein should be read in conjunction with the company's second quarter 2023 unaudited condensed consolidated interim financial statements, and the related management's discussion and analysis (MD&A).

NXT's 2023 second quarter financial and operating results have been filed in Canada on SEDAR+ and will soon be available in the United States on EDGAR, as well as on NXT's website.

About NXT Energy Solutions Inc.

NXT Energy is a Calgary-based technology company whose proprietary SFD survey system utilizes quantum-scale sensors to detect gravity field perturbations in an airborne survey method, which can be used both onshore and offshore, to remotely identify traps and reservoirs with hydrocarbon and geothermal exploration potential. The SFD survey system enables clients to focus their exploration decisions concerning land commitments, data acquisition expenditures and prospect prioritization on areas with the greatest potential. SFD is environmentally friendly and unaffected by ground security issues or difficult terrain, and is the registered trademark of NXT Energy. NXT Energy provides its clients with an effective and reliable method to reduce time, costs and risks related to exploration.

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