NXT Energy Solutions Inc. ("NXT" or the "Company") announced the Company's financial and operating results for the quarter and year ended December 31, 2022 as well as significant subsequent events. All dollar amounts herein are in Canadian Dollars unless otherwise identified.
Financial and Operating Highlights
Key financial and operational highlights are summarized below:
January 25, 2023, the Company closed a Private Placement by issuing 8,510,000 common shares, at $0.195 per common shares, for aggregate gross proceeds of approximately $1,659,450, less issuance costs of $1,170;
During December 2022 a rights offering and the first tranche of the private placement contributed $0.43 million of cash;
In January, the Board of Directors formally empowered a Management Committee of the Board to assume the CEO’s duties;
The Management Committee is working closely with senior management to bring to fruition near-term potential contracts in Africa and Asia Minor;
cash at December 31, 2022 was $0.26 million;
net working capital was $(1.681) million at December 31, 2022;
the Company recorded SFD®-related revenues of $nil;
a net loss of $1.47 million was recorded for Q4-22, including stock-based compensation expense ("SBCE") and amortization expense of $0.47 million;
a net loss of $6.73 million was recorded for YE-22, including SBCE and amortization expense of $1.98 million;
net loss per common share for Q4-22 was $0.02 basic and $0.02 diluted;
net loss per common share for YE-22 was $0.10 basic and $0.10 diluted;
cash flow used in operating activities was $0.70 million during Q4-22 and $2.93 million during YE-22;
general and administrative ("G&A") expenses decreased by $0.03 million (3%) in Q4-22 as compared to Q4-21; and
G&A expenses increased by $0.55 million (17%) in YE-22 as compared to YE-21.
On January 6, 2023 the Company announced the grant of 2,050,000 incentive stock options at a price of $0.216 to employees, officers and directors. These incentive stock options will vest upon receipt of cash for SFD® services performed: 1/3 upon collection of US$6.5 million, 1/3 upon the collection of the next US$7.0 million and the final 1/3 upon collection of an additional US$7.5 million.
Summary highlights of NXT's 2022 financial statements (with comparative figures to 2021) are noted below. All selected and referenced financial information noted below should be read in conjunction with the Company's 2022 audited consolidated Financial Statements, the related Management's Discussion and Analysis ("MD&A").
