CALGARY, Alberta, May 14, 2020 (GLOBE NEWSWIRE) -- 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 March 31, 2020. All dollar amounts herein are in Canadian Dollars.
Q1 Financial and Operating Highlights
Key financial and operational highlights for the first quarter include:
Message to Shareholders
George Liszicasz, President, and CEO of NXT, commented, “I want to convey my sincere hope that everyone is well and continues to stay healthy at this difficult time.
NXT had a very busy first quarter where my team and I engaged in a broad scale international market business development effort which included a signed memorandum of understanding with an independent oil company with interests in East-Central Africa. Though currently there are several challenges facing our world and industry, NXT is focused on minimizing risks and continues to advance discussions for SFD® survey opportunities within Nigeria, East-Central Africa, Mexico, and selected Asian countries primarily via video conferences. Our clients are still working and there are continuous discussions regarding the projects.
I would like to provide some of additional key operational highlights:
Summary highlights of NXT's 2020 first 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 first quarter 2020 unaudited condensed consolidated interim financial statements and the related management's discussion and analysis ("MD&A").
(All in Canadian $) | Three months ended March 31 | |||||
2020 | 2019 | |||||
Operating results: | ||||||
Survey revenues | $ | - | $ | - | ||
Survey expenses | 301,961 | 377,733 | ||||
General & administrative expenses | 974,334 | 921,749 | ||||
Stock based compensation expense | 21,665 | 3,775 | ||||
Amortization and other expenses, net | 448,381 | 443,697 | ||||
1,746,341 | 1,746,954 | |||||
Comprehensive loss for the period | $ | (1,332,301 | ) | $ | (1,763,320 | ) |
Loss per common share – basic | $ | (0.02 | ) | $ | (0.03 | ) |
Loss per common share – diluted | $ | (0.02 | ) | $ | (0.03 | ) |
Number of common shares outstanding as at end of the period | 64,406,891 | 68,573,558 | ||||
Weighted average number of common shares outstanding for the period: | ||||||
Basic | 64,406,891 | 68,573,558 | ||||
Diluted | 64,406,891 | 68,573,558 | ||||
Cash provided by (used in): | ||||||
Operating activities | $ | (634,660 | ) | $ | (881,482 | ) |
Financing activities | (11,158 | ) | (10,377 | ) | ||
Investing activities | 29,424 | 1,200,000 | ||||
Effect of exchange rate changes on cash | 157,656 | 3,503 | ||||
Net cash inflow (outflow) | (458,738 | ) | 311,644 | |||
Cash and cash equivalents, beginning of the period | 2,858,245 | 339,532 | ||||
Cash and cash equivalents, end of the period | 2,399,507 | 651,176 | ||||
Cash and cash equivalents | 2,399,507 | 651,176 | ||||
Short-term investments | 3,843,212 | 2,700,000 | ||||
Total cash and short-term investments | 6,242,719 | 3,351,176 | ||||
Net working capital balance | 6,159,548 | 1,976,283 | ||||
NXT's 2020 first 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 first quarter financial and operating results are as follows:
Date: | Tuesday, May 19, 2020 |
Time: | 4:30 p.m. Eastern Time (2:30 p.m. Mountain Time) |
Participants Call: | 1-855-783-0506 |
Conference ID | 9897452 |
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.
Contact Information
For investor and media inquiries please contact:
Eugene Woychyshyn | Mr. George Liszicasz |
VP Finance & CFO | President & CEO |
+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: the repayment of the Principle Amount; business negotiations and opportunities, including the extent to which the DPR recommendation may further the development thereof; results disclosure and discussions, including the timing thereof; business strategies and objectives, successful completion of the validation of patents in select European countries; and continued research on the QCF study. 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, 2019 and the MD&A for the period ended March 31, 2020, 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 period ended March 31, 2020 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. The MD&A and the unaudited condensed consolidated interim financial statements and notes for the year ended March 31, 2020, are available through the Internet in the Investor Relations section of www.nxtenergy.com or under NXT's SEDAR profile at www.sedar.com.