NXT Energy Solutions Announces Second Quarter 2021 Results
August 12 2021 - 04:27PM
NXT Energy Solutions Inc. ("NXT" or the "Company") (TSX: SFD; OTC
QB: NSFDF) today announced the Company's financial and operating
results for the quarter ended June 30, 2021. All dollar amounts
herein are in Canadian Dollars unless otherwise identified.
Q2 Financial and Operating
Highlights
Key financial and operational highlights for
Q2-21 are summarized below:
- The Company recorded survey revenue
of $3.14 million in Q2-21 and YTD 2021;
- Net income per common share for
Q2-21 was $0.02 basic and $0.02 diluted, including stock-based
compensation and amortization expense of $0.50 million;
- Cash flow provided by operating
activities was $0.73 million during Q2-21;
- Net income per common share for YTD
2021 was $0.00 basic and $0.00 diluted, including stock-based
compensation and amortization expense of $0.96 million;
- Cash flow used in operating
activities was $0.15 million for YTD 2021;
- Cash and short-term investments at
June 30, 2021 were $3.78 million;
- The Company acquired the rights to
use the SFD® technology to explore for geothermal resources;
- The Company received $1,000,000
from the Business Development Bank of Canada’s Highly Affected
Sectors Credit Availability Program (the "HASCAP Loan");
- General and administrative
("G&A") expenses decreased by $0.13 million (16%) as compared
to Q2-20, due primarily to the receipt of a higher Canada Emergency
Wage Subsidy, the Canada Emergency Rent Subsidy ("CERS") and lower
professional fees; and
- G&A for YTD-2021 as compared to
YTD-2020 decreased by $0.22 million (12%), mostly due to receiving
the CERS in 2021, decreased professional fees, and no business
development travel due to the COVID-19 pandemic.
Key financial and operational highlights
occurring subsequent to Q2-21 are summarized below:
- On July 1, 2021 energy exploration
veteran, Gerry Sheehan, joined the Board of Directors; and
- The Company began receiving
advisory services and funding of up to $50,000 from the National
Research Council of Canada Industrial Research Assistance Program
(“NRC IRAP”) to support the research and development of the SFD®
technology for geothermal applications.
Message to Shareholders
George Liszicasz, President and CEO of NXT,
commented, “With $3.14 million of revenue, net income of $0.02
per share and cash flow from operations of $0.73 million, this
quarter showed modest but initial results of our business
development efforts. We were also pleased to have
recently announced NXT was able to further strengthen its financial
foundation by securing the HASCAP Loan of $1,000,000, that
energy exploration veteran Gerry Sheehan joined our Board of
Directors, and that NXT is now receiving advisory services and
funding from NRC IRAP to support the research and development of
the SFD® technology for geothermal applications.
“On the business development side, hydrocarbon
survey opportunities continue to progress well in our core areas of
focus in Africa, Mexico, Asia, and in South America. In
addition, we are in discussions with multiple geothermal
companies about providing SFD® services to them. For
these reasons, we are optimistic about the second half of 2021, and
will remain focussed on contract-execution in order to deliver
value to our shareholders. On behalf of our Board of Directors
and the entire team at NXT, I want to thank all of our shareholders
for their continued support.”
Summary highlights of NXT's 2021 second quarter
financial statements (with comparative figures to 2020) are noted
below. All selected and referenced financial information noted
below should be read in conjunction with the Company's second
quarter 2021 unaudited condensed consolidated interim Financial
Statements, the related Management's Discussion and Analysis
("MD&A").
(All in Canadian $)
|
Q2-21 |
|
Q2-20 |
|
2021 YTD |
|
2020 YTD |
|
Operating results: |
|
|
|
|
Survey revenues |
$ |
3,144,373 |
|
$ |
136,566 |
|
$ |
3,144,373 |
|
$ |
136,566 |
|
Survey costs, net |
|
383,211 |
|
|
231,885 |
|
|
648,694 |
|
|
533,846 |
|
General & administrative expenses |
|
682,851 |
|
|
810,172 |
|
|
1,583,160 |
|
|
1,806,171 |
|
Amortization |
|
444,171 |
|
|
442,180 |
|
|
885,995 |
|
|
890,561 |
|
Other Expenses |
|
100,934 |
|
|
132,038 |
|
|
136,869 |
|
|
(282,002 |
) |
|
|
1,611,167 |
|
|
1,616,275 |
|
|
3,254,718 |
|
|
2,948,576 |
|
Net income (loss) |
$ |
1,533,206 |
|
$ |
(1,479,709 |
) |
$ |
(110,345 |
) |
$ |
(2,812,010 |
) |
|
|
|
|
|
Income (loss) per common share: |
|
|
|
|
Basic |
$ |
0.02 |
|
$ |
(0.02 |
) |
$ |
0.00 |
|
$ |
(0.04 |
) |
Diluted |
$ |
0.02 |
|
$ |
(0.02 |
) |
$ |
0.00 |
|
$ |
(0.04 |
) |
|
|
|
|
|
Common shares outstanding as at end of the period |
|
64,556,305 |
|
|
64,406,891 |
|
|
64,556,305 |
|
|
64,406,891 |
|
Weighted average of common shares outstanding for the period: |
|
|
|
|
Basic |
|
64,526,430 |
|
|
64,406,891 |
|
|
64,499,475 |
|
|
64,406,891 |
|
Diluted |
|
66,007,218 |
|
|
64,406,891 |
|
|
64,499,475 |
|
|
64,406,891 |
|
|
|
|
|
|
Cash provided by (used in): |
|
|
|
|
Operating activities |
$ |
729,564 |
|
$ |
(1,097,591 |
) |
$ |
(153,756 |
) |
$ |
(1,696,781 |
) |
Financing activities |
|
1,016,590 |
|
|
(31,357 |
) |
|
1,036,225 |
|
|
(42,515 |
) |
Investing activities |
|
(176,617 |
) |
|
834,302 |
|
|
14,644 |
|
|
863,726 |
|
Effect of foreign rate changes on cash |
|
(63,769 |
) |
|
(159,499 |
) |
|
(78,268 |
) |
|
(37,313 |
) |
Net cash inflow (outflow) |
|
1,505,768 |
|
|
(454,145 |
) |
|
818,845 |
|
|
(912,883 |
) |
Cash and cash equivalents, beginning of the period |
|
2,003,223 |
|
|
2,399,507 |
|
|
2,690,146 |
|
|
2,858,245 |
|
Cash and cash equivalents, end of the period |
|
3,508,991 |
|
|
1,945,362 |
|
|
3,508,991 |
|
|
1,945,362 |
|
|
|
|
|
|
Cash and cash equivalents |
|
3,508,991 |
|
|
1,945,362 |
|
|
3,508,991 |
|
|
1,945,362 |
|
Short-term investments |
|
269,623 |
|
|
2,957,568 |
|
|
269,623 |
|
|
2,957,568 |
|
Total cash and short-term investments |
|
3,778,614 |
|
|
4,902,930 |
|
|
3,778,614 |
|
|
4,902,930 |
|
|
|
|
|
|
Net working capital balance |
|
4,638,000 |
|
|
5,086,263 |
|
|
4,638,000 |
|
|
5,086,263 |
|
NXT's 2021 second 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 are as
follows:
Date: |
Monday, August 16, 2021 |
Time: |
4:30 p.m. Eastern Time (2:30 p.m. Mountain Time) |
North American Participants Call: |
1-(855)-783-0506 |
Participant Pass Code |
6992038 |
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 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:
Eugene Woychyshyn |
George Liszicasz |
Vice President of Finance &
CFO |
President & CEO |
302, 3320 – 17th AVE SW |
302, 3320 – 17th AVE SW |
Calgary, AB, T3E 0B4 |
Calgary, AB, T3E 0B4 |
+1 403 206 0805 |
+1 403 206 0800 |
nxt_info@nxtenergy.com |
nxt_info@nxtenergy.com |
www.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: business
negotiations, opportunities, discussions, including the timing
thereof and business strategies. 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, including those
related to the novel coronavirus (2019-nCoV/COVID-19), and the
potentially negative effects thereof on the Company's workforce,
its supply chain or demand for its products. Additional risk
factors facing the Company are described in its most recent Annual
Information Form for the year ended December 31, 2020 and MD&A
for the three and six month periods ended June 30, 2021, which have
been filed electronically by means of the System for Electronic
Document Analysis and Retrieval (“SEDAR”) located at www.sedar.com.
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 six month periods ended June 30, 2021
which is available under NXT's profile on SEDAR at www.sedar.com,
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. Management's
discussion and analysis of financial results and the unaudited
condensed consolidated interim financial statements and notes for
the three months ended June 30, 2021, are available through the
Internet in the Investor Relations section of www.nxtenergy.com or
under NXT's SEDAR profile at www.sedar.com.
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