NXT Energy Solutions Announces Third Quarter 2024 Results
NXT Energy Solutions reported its Q3 2024 financial results, showing a net loss of $1.48 million for the quarter and $6.28 million year-to-date. The company secured several new contracts, including a repeat SFD® survey in Africa and a geothermal survey in Alberta. Cash and short-term investments stood at $0.94 million, with negative working capital of $2.94 million. Revenue was $0.60 million YTD 2024, with no revenue in Q3. General and administrative expenses increased by 19% compared to Q3-23. Post-quarter, NXT secured a new survey contract and received US$500,000 of a US$900,000 convertible debenture from Ataraxia.
NXT Energy Solutions ha riportato i risultati finanziari per il terzo trimestre del 2024, evidenziando una perdita netta di 1,48 milioni di dollari per il trimestre e di 6,28 milioni di dollari dall'inizio dell'anno. L'azienda ha ottenuto diversi nuovi contratti, incluso un'indagine SFD® in Africa e un'indagine geotermica in Alberta. La liquidità e gli investimenti a breve termine ammontano a 0,94 milioni di dollari, con un capitale circolante negativo di 2,94 milioni di dollari. Il fatturato è stato di 0,60 milioni di dollari dall'inizio dell'anno 2024, senza entrate nel terzo trimestre. Le spese generali e amministrative sono aumentate del 19% rispetto al terzo trimestre del 2023. Dopo il trimestre, NXT ha ottenuto un nuovo contratto per un'indagine e ha ricevuto 500.000 dollari di un'obbligazione convertibile da 900.000 dollari da Ataraxia.
NXT Energy Solutions reportó sus resultados financieros del tercer trimestre de 2024, mostrando una pérdida neta de 1,48 millones de dólares para el trimestre y de 6,28 millones de dólares en lo que va del año. La empresa aseguró varios nuevos contratos, incluyendo una encuesta SFD® repetida en África y una encuesta geotérmica en Alberta. El efectivo y las inversiones a corto plazo se situaron en 0,94 millones de dólares, con un capital de trabajo negativo de 2,94 millones de dólares. Los ingresos fueron de 0,60 millones de dólares en lo que va de 2024, sin ingresos en el tercer trimestre. Los gastos generales y administrativos aumentaron un 19% en comparación con el tercer trimestre de 2023. Después del trimestre, NXT obtuvo un nuevo contrato de encuesta y recibió 500.000 dólares de un debenture convertible de 900.000 dólares de Ataraxia.
NXT Energy Solutions는 2024년 3분기 재무 결과를 발표하며, 해당 분기 동안 148만 달러의 순 손실과 올해 누적 628만 달러의 손실을 기록했습니다. 회사는 아프리카에서의 반복 SFD® 조사와 앨버타의 지열 조사 등 여러 신규 계약을 체결했습니다. 현금 및 단기 투자는 94만 달러에 달하며, 부정적인 운전자본은 294만 달러입니다. 2024년 누적 수익은 60만 달러였으며 3분기에는 수익이 없었습니다. 일반 관리비용은 2023년 3분기 대비 19% 증가했습니다. 분기 후, NXT는 새로운 조사 계약을 확보하고 Ataraxia로부터 90만 달러의 전환 사채 중 50만 달러를 받았습니다.
NXT Energy Solutions a annoncé ses résultats financiers pour le troisième trimestre de 2024, affichant une perte nette de 1,48 million de dollars pour le trimestre et de 6,28 millions de dollars depuis le début de l'année. L'entreprise a obtenu plusieurs nouveaux contrats, notamment une enquête SFD® répétée en Afrique et une enquête géothermique en Alberta. Les liquidités et les investissements à court terme s'élevaient à 0,94 million de dollars, avec un fonds de roulement négatif de 2,94 millions de dollars. Le chiffre d'affaires était de 0,60 million de dollars depuis le début de l'année 2024, sans revenus au troisième trimestre. Les frais généraux et administratifs ont augmenté de 19 % par rapport au troisième trimestre 2023. Après le trimestre, NXT a sécurisé un nouveau contrat d'enquête et a reçu 500 000 dollars d'une obligation convertible de 900 000 dollars de la part d'Ataraxia.
NXT Energy Solutions hat die Finanzergebnisse für das dritte Quartal 2024 veröffentlicht und zeigt einen Nettoverlust von 1,48 Millionen US-Dollar für das Quartal und 6,28 Millionen US-Dollar seit Jahresbeginn. Das Unternehmen sicherte sich mehrere neue Verträge, darunter eine erneute SFD®-Erhebung in Afrika und eine geothermische Erhebung in Alberta. Die liquiden Mittel und kurzfristigen Investitionen beliefen sich auf 0,94 Millionen US-Dollar, bei einem negativen Arbeitskapital von 2,94 Millionen US-Dollar. Der Umsatz betrug 0,60 Millionen US-Dollar bis zum Jahr 2024, ohne Umsatz im dritten Quartal. Die allgemeinen und Verwaltungskosten stiegen um 19% im Vergleich zum 3. Quartal 2023. Nach dem Quartal sicherte sich NXT einen neuen Erhebungsvertrag und erhielt 500.000 US-Dollar von einer 900.000 US-Dollar umfassenden wandelbaren Anleihe von Ataraxia.
- Secured new contracts for SFD® surveys in Africa and Alberta
- Received US$175,000 advance payment for Southeast Asia survey
- Secured US$900,000 in convertible debentures financing
- Generated $602,072 in YTD revenue
- Net loss increased to $6.28 million YTD 2024 from $5.03 million YTD 2023
- Working capital deficit worsened to $2.94 million from $1.85 million at end of 2023
- G&A expenses increased by 19% in Q3-24 compared to Q3-23
- Zero revenue recorded in Q3-24
- Cash position declined to $0.94 million
CALGARY, AB / ACCESSWIRE / November 7, 2024 / NXT Energy Solutions Inc. ("NXT" or the "Company") (TSX:SFD)(OTCQB:NSFDF) today announced the Company's financial and operating results for the quarter ended September 30, 2024. All dollar amounts herein are in Canadian Dollars, unless otherwise identified.
Financial and Operating Highlights
Key financial and operational highlights during the third quarter of 2024 are summarized below:
On September 24, 2024 the Company announced that it entered into a contract with its Strategic Alliance Partner, Synergy E&P Technologies Limited to provide a repeat SFD® survey in Africa for an oil and gas exploration company;
On August 21, 2024 the Company entered into a contract to provide a geothermal SFD® survey to Alberta Geothermal Resource Recovery Inc;
NXT received an advance payment of US
$175,000 for its upcoming Southeast Asia SFD® survey;cash and short-term investments at September 30, 2024 was approximately
$0.94 million ;net working capital was approximately (
$2.94) million at September 30, 2024 versus approximately ($1.85) million at December 31, 2023;the Company recorded SFD®-related revenues of approximately
$0.60 million YTD 2024, $nil for Q3-24;a net loss of
$1.48 million was recorded for Q3-24, including stock-based compensation expense ("SBCE"), amortization expense and remeasurement gain, all totaling approximately$0.04 million ;a net loss of
$6.28 million was recorded for YTD 2024, including SBCE, amortization expense and remeasurement loss, all totaling approximately$2.06 million ;net loss per common share for Q3-24 was
$0.02 per share (basic) and$0.02 per share (diluted);net loss per common share for YTD 2024 was
$0.08 per share (basic) and$0.08 per share (diluted);cash flow used in operating activities was approximately
$1.32 million during Q3-24, compared to$0.95 million used in Q3-23;cash flow used in operating activities was approximately
$2.58 million during YTD 2024, compared to$3.36 million used in YTD 2023;general and administrative ("G&A") expenses increased by approximately
$0.16 million (19% ) in Q3-24 as compared to Q3-23; andG&A expenses increased by approximately
$0.34 million (13% ) in YTD 2024 as compared to YTD 2023.
Key financial and operational highlights occurring subsequent to Q3-24 are summarized below:
NXT was awarded an SFD® survey by AL-Haj Enterprises Private Limited in the Northern Suleiman Fold Belt, to commence in Q2-25;
NXT's SFD® awarded Best Exploration Technology at the 2024 Gulf Energy Information Excellence Awards; and
On November 1, 2024 the Company announced it will receive US
$900,000 (approximately CDN$1,252,080) for convertible debentures from Ataraxia under the same terms as the subscription agreement signed between Ataraxia and NXT in 2023, at a conversion price of US$0.24 per common share. As of the date of this MD&A, the Company has received US$500,000 (approximately CDN$695,600) .
Summary highlights of NXT's third quarter 2024 financial statements (with comparative figures to 2023) are noted below. All selected and referenced financial information noted below should be read in conjunction with the Company's September 30, 2024 unaudited condensed interim consolidated financial statements, the related Management's Discussion and Analysis ("MD&A").
(All in Canadian $) |
|
| Q3-24 |
|
|
| Q3-23 |
|
| 2024 YTD |
|
| 2023 YTD |
| ||
Operating results: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
SFD®-related revenues |
| $ | - |
|
| $ | - |
|
| $ | 602,072 |
|
| $ | - |
|
SFD®-related costs, net |
|
| 338,786 |
|
|
| 348,169 |
|
|
| 1,322,886 |
|
|
| 968,199 |
|
General & administrative expenses |
|
| 1,003,871 |
|
|
| 841,200 |
|
|
| 2,987,220 |
|
|
| 2,644,261 |
|
Amortization |
|
| 482,157 |
|
|
| 439,868 |
|
|
| 1,404,855 |
|
|
| 1,319,604 |
|
Interest, remeasurement loss (gain), and other expenses |
|
| (347,414 | ) |
|
| 74,719 |
|
|
| 1,164,324 |
|
|
| 93,348 |
|
Net loss |
|
| (1,477,400 | ) |
|
| (1,703,956 | ) |
|
| (6,277,213 | ) |
|
| (5,025,412 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Loss per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic & diluted |
| $ | (0.02 | ) |
| $ | (0.02 | ) |
| $ | (0.08 | ) |
| $ | (0.07 | ) |
Common shares outstanding as at end of the period |
|
| 78,389,422 |
|
|
| 77,958,928 |
|
|
| 78,389,422 |
|
|
| 77,958,928 |
|
Weighted average of common shares outstanding: Basic & Diluted |
|
| 78,341,847 |
|
|
| 77,735,682 |
|
|
| 78,209,964 |
|
|
| 77,283,442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Cash provided by (used in): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities |
| $ | (1,320,888 | ) |
| $ | (953,051 | ) |
| $ | (2,580,785 | ) |
| $ | (3,363,362 | ) |
Financing activities |
|
| (156,678 | ) |
|
| 253,114 |
|
|
| 3,159,687 |
|
|
| 3,469,891 |
|
Investing activities |
|
| - |
|
|
| - |
|
|
| (95,446 | ) |
|
| - |
|
Effect of foreign rate changes on cash |
|
| (12,905 | ) |
|
| 18,921 |
|
|
| (10,198 | ) |
|
| (558 | ) |
Net cash inflow |
|
| (1,490,471 | ) |
|
| (681,016 | ) |
|
| 473,258 |
|
|
| 105,971 |
|
Cash and cash equivalents, beginning of the period |
|
| 2,365,442 |
|
|
| 1,050,424 |
|
|
| 401,713 |
|
|
| 263,437 |
|
Cash and cash equivalents, end of the period |
|
| 874,971 |
|
|
| 369,408 |
|
|
| 874,971 |
|
|
| 369,408 |
|
Total cash and short-term investments |
|
| 942,515 |
|
|
| 369,408 |
|
|
| 942,515 |
|
|
| 369,408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net working capital balance |
|
| (2,935,727 | ) |
|
| (3,468,900 | ) |
|
| (2,935,727 | ) |
|
| (3,468,900 | ) |
NXT's third quarter 2024 financial and operating results have been filed in Canada on SEDAR+ at www.sedarplus.ca, 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.
About NXT Energy Solutions Inc.
NXT Energy Solutions Inc. is a Calgary-based technology company whose proprietary airborne SFD® survey system, 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 our 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 Solutions Inc. NXT Energy Solutions Inc. provides its clients with an effective and reliable method to reduce time, costs, and risks related to exploration.
Contact Information
For investor and media inquiries please contact:
Michael Baker
Investor Relations
302, 3320 - 17th AVE SW
Calgary, AB, T3E 0B4
+1 403 264 7020
nxt_info@nxtenergy.com
www.nxtenergy.com
Forward-Looking Statements
Certain information provided in this press release may constitute forward-looking information within the meaning of applicable securities laws. Forward-looking information typically contains statements with words such as "anticipate", "believe", "estimate", "will", "expect", "plan", "schedule", "intend", "propose" or similar words suggesting future outcomes or an outlook. Forward-looking information in this press release includes, but is not limited to, information regarding: the timing of the African and Southeast Asia SFD® surveys. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Additional risk factors facing the Company are described in its most recent Annual Information Form for the year ended December 31, 2023 and MD&A for the three and nine months ended September 30, 2024, which have been filed electronically by means of the System for Electronic Document Analysis and Retrieval ("SEDAR+") located at www.sedarplus.ca. The forward-looking statements contained in this press release are made as of the date hereof, and except as may be required by applicable securities laws, the Company assumes no obligation to update publicly or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Non-GAAP Measures
This news release contains disclosure respecting non-GAAP performance measures including net working capital which does not have a standardized meaning prescribed by US GAAP and may not be comparable to similar measures presented by other entities. This measure is included to enhance the overall understanding of NXT's ability to assess liquidity at a point in time. Readers are urged to review the section entitled "Non-GAAP Measures" in NXT's MD&A for the three and nine months ended September 30, 2024 which is available under NXT's profile on SEDAR+ at www.sedarplus.ca, for a further discussion of such non-GAAP measures. The financial information accompanying this news release was prepared in accordance with US GAAP, unless otherwise noted. The MD&A and the unaudited condensed interim consolidated financial statements and notes for the three and nine months ended September 30, 2024, are available in the Investor Relations section of www.nxtenergy.com, or under NXT's SEDAR+ profile at www.sedarplus.ca.
SOURCE: NXT Energy Solutions, Inc.
View the original press release on accesswire.com
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