NXT Energy Solutions (SFD) Q4 2024 earnings summary

Executive summary

• Entered multiple SFDⓇ survey contracts in Africa, Southeast Asia, and South Asia, with significant expected financial impact in 2025.

• Completed Turkish SFDⓇ survey and delivered results; awarded Best Exploration Technology at 2024 Gulf Energy Information Excellence Awards.

• Extended aircraft lease for three years, with ownership at term end; reduced and extended office lease to 2030.

Financial highlights

• SFDⓇ-related revenues for 2024 were $0.64M, down from $2.15M in 2023.

• Net loss for 2024 was $9.08M, compared to $5.45M in 2023; Q4-24 net loss was $2.80M.

• Cash and short-term investments at year-end 2024 totaled $0.73M.

• Net working capital at December 31, 2024 was negative $6.68M, compared to negative $1.86M at prior year-end.

• Cash flow used in operating activities was $3.99M for 2024, down from $4.83M in 2023.

Outlook and guidance

• Anticipates significant positive financial impact from SFDⓇ surveys in Africa, Southeast Asia, and South Asia in Q1 and full year 2025.

• Focused on expanding regional market penetration with multiple customers in key regions.

• African SFDⓇ survey results expected to be delivered in Q2 2025; Southeast Asia survey planned for April 2025; Pakistan survey to commence in Q3 2025.