NXT Energy Solutions Inc. announced the Company’s financial and operating results for the quarter ended September 30, 2020. All dollar amounts herein are in Canadian Dollars.
Q3 Financial and Operating Highlights
Key financial and operational highlights for the third quarter include:
Message to Shareholders
George Liszicasz, President, and CEO of NXT, commented, “Although no survey revenues were recorded in Q3, contract opportunities remain in discussion in our core areas of interest in Africa, North and South America, and South-East Asia. We remain highly confident in the approach we have taken to realize near term opportunities with National Oil Companies that have a long term strategic approach to the development of reserves. Given uncertain times, patience is required to reach definitive agreements.
I am pleased to update you on the progress of our new algorithms that assist in the interpretation of SFD® data in a manner that can be integrated more effectively with conventional seismic data interpretation. Over the last quarter we have prototyped mathematical data transformation routines to enhance the quality and repeatability of SFD® data. While the methods need final formalization and field testing, NXT expects that the eventual application of these transformations will allow the extraction of additional important information to increase the reliability of interpretation and to increase the overall efficiency of operations. These methods are also expected to provide the first steps towards algorithmic interpretation and to significantly increase the value that SFD® provides in the hydrocarbon exploration cycle.
I am also pleased to announce that we extended our MOU with BGP Inc., a subsidiary of China National Petroleum Corporation, for an additional two years to further explore opportunities for NXT and BGP Inc. to work together. NXT’s forward strategy is to secure SFD® contracts with BGP and its affiliates.”
Summary highlights of NXT’s 2020 third quarter financial statements (with comparative figures to 2019) are noted below. All selected and referenced financial information noted below should be read in conjunction with the Company’s third quarter 2020 unaudited condensed consolidated interim financial statements and the related management’s discussion and analysis (“MD&A”).
|(All in Canadian $)|
|Q3-20||Q3-19||2020 YTD||2019 YTD|
|General & administrative expenses||707,640||881,716||2,484,621||2,570,866|
|Stock based compensation expense||35,384||64,983||64,574||72,533|
|Amortization and other expenses, net||506,244||336,607||1,114,803||1,481,843|
|Net (loss) income and comprehensive (loss) income||$||(1,502,456||)||$||(774,373||)||$||(4,314,466||)||$||5,548,195|
|Income (loss) per common share – basic||$||(0.02||)||$||(0.01||)||$||(0.07||)||$||0.08|
|Income (loss) per common share – diluted||$||(0.02||)||$||(0.01||)||$||(0.07||)||$||0.08|
|Number of common shares outstanding as at end of the period||64,406,891||68,573,558||64,406,891||68,573,558|
|Weighted average number of common shares outstanding for the period:|
|Cash provided by (used in):|
|Effect of foreign rate changes on cash||7,438||103,688||(29,875||)||109,048|
|Net cash inflow (outflow)||702,013||1,509,314||(210,870||)||2,326,133|
|Cash and cash equivalents, beginning of the period||1,945,362||1,156,351||2,858,245||339,532|
|Cash and cash equivalents, end of the period||2,647,375||2,665,665||2,647,375||2,665,665|
|Cash and cash equivalents||2,647,375||2,665,665||2,647,375||2,665,665|
|Total cash and short-term investments||4,055,884||6,725,386||4,055,884||6,725,386|
|Net working capital balance||3,991,065||9,894,580||3,991,065||9,894,580|
NXT’s 2020 third quarter financial and operating results have been filed in Canada on SEDAR at www.sedar.com, and will soon be available in the USA on EDGAR at www.sec.gov/edgar, as well as on NXT’s website at www.nxtenergy.com.
Details of the conference call to discuss the 2020 third quarter financial and operating results are as follows:
|Date:||Tuesday, November 17, 2020|
|Time:||4:30 p.m. Eastern Time (2:30 p.m. Mountain Time)|
|North American Participants Call:||1-855-783-0506|
|Participant Pass Code||7683696|
About NXT Energy Solutions Inc.
NXT Energy Solutions Inc. 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 exploration potential. The SFD® survey system enables our clients to focus their hydrocarbon 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 Solutions Inc. NXT Energy Solutions Inc. provides its clients with an effective and reliable method to reduce time, costs, and risks related to exploration.
For investor and media inquiries please contact:
|Eugene Woychyshyn||Mr. George Liszicasz|
|VP Finance & CFO||President & CEO|