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NXT Energy loses $1.78-million in Q1

2024-05-14 18:24 ET - News Release

Mr. Eugene Woychyshyn reports


NXT Energy Solutions Inc. has released its financial and operating results for the quarter ended March 31, 2024. All dollar amounts herein are in Canadian dollars unless otherwise identified.

Financial and operating highlights

Key financial and operational highlights during the first quarter of 2024 are summarized below:

  • NXT completed the Turkish SFD survey, delivered the final results thereof to its Turkish customers, and completed the integration of SFD data with existing geological and geophysical data.
  • NXT recorded SFD-related revenues of approximately $600,000.
  • NXT and Huloolq Ltd. (known as Qamia), an Abu Dhabi-based start-up focused on deep tech disruptive technologies, entered into a sales agency agreement covering the United Arab Emirates (UAE).
  • On March 22, the company extended its lease on its aircraft for an additional three years as a capital lease. Under the terms of the lease, the company will own the aircraft at the end of the term.
  • Debentures were finalized for a total of $1.87-million (U.S.) ($2.54-million (Canadian)). Of the debentures, $720,000 (U.S.) (approximately $970,000 (Canadian)) was received in Q1 2024. Cash at March 31, 2024, was approximately $530,000.
  • Net working capital was approximately negative $2.64-million at March 31, 2024, versus approximately negative $1.86-million at Dec. 31, 2023.
  • A net loss of $1.79-million was recorded for Q1 2024, including stock-based compensation expense and amortization expense of approximately $490,000.
  • Net loss per common share for Q1 2024 was two cents per share (basic) and two cents per share (diluted).
  • Cash flow used in operating activities was approximately $590,000 during Q1 2024.
  • General and administrative expenses increased by approximately $160,000 or 19 per cent in Q1 2024 as compared with Q1 2023.

Key financial and operational highlights occurring subsequent to Q1 2024 are summarized in this news release. NXT surrendered approximately 3,207 square feet or approximately 31 per cent of its current office space to its landlord, and extended its lease on the reduced office space until Sept. 30, 2030.

Summary highlights of NXT's first quarter 2024 financial statements (with comparative figures to 2023) are noted in the attached table. All selected and referenced financial information noted should be read in conjunction with the company's March 31, 2024, unaudited condensed interim consolidated financial statements, and the related management's discussion and analysis (MD&A).

NXT's first quarter 2024 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.

Annual meeting of shareholders

NXT has rescheduled its annual meeting of shareholders from June 19, 2024, to July 15, 2024.

About NXT Energy Solutions Inc.

NXT is a Calgary-based technology company, the proprietary airborne SFD survey system of which, applied in numerous basins around the world, uses the principles of quantum mechanics to infer stress anomalies of exploration interest. The method can be used both onshore and offshore to remotely identify areas conducive to fluid entrapment in order to recommend areas with commercial hydrocarbon and/or geothermal potential. The SFD survey system enables the company's 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. NXT provides its clients with an effective and reliable method to reduce time, costs and risks related to exploration.

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