NXT Energy Solutions Inc. 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").
