NXT Energy Solutions Inc. Files 20-F for Fiscal Year 2023

TL;DR

<b>NXT Energy Solutions Inc. has filed its 2023 annual report on Form 20-F, detailing its operations and financial standing.</b>

AI Summary

NXT Energy Solutions Inc. (NSFDF) filed a Foreign Annual Report (20-F) with the SEC on April 26, 2024. NXT Energy Solutions Inc. filed its annual report on Form 20-F for the fiscal year ended December 31, 2023. The company's principal executive offices are located at 3320 - 17th Avenue SW, Suite 302, Calgary, T3E 0B4. NXT Energy Solutions Inc. was formerly known as ENERGY EXPLORATION TECHNOLOGIES and PINNACLE OIL INTERNATIONAL INC. The filing covers the period from January 1, 2023, to December 31, 2023. The company operates in the Oil and Gas Field Exploration Services industry.

Why It Matters

For investors and stakeholders tracking NXT Energy Solutions Inc., this filing contains several important signals. This filing provides stakeholders with a comprehensive overview of NXT Energy Solutions Inc.'s performance and strategic direction for the fiscal year 2023. As a public document, this 20-F filing is crucial for investors, analysts, and the public to assess the company's financial health, risks, and future prospects in the oil and gas sector.

Risk Assessment

Risk Level: — NXT Energy Solutions Inc. shows moderate risk based on this filing. The company's business is subject to the inherent risks and volatility of the oil and gas industry, which can impact exploration and production activities and financial results.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 20-F filing to understand NXT Energy Solutions Inc.'s operational performance and market position.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-04-26 — Filing Date (Date the 20-F was filed)
• 124 — Public Document Count (Number of documents in the filing)

Key Players & Entities

• NXT Energy Solutions Inc. (company) — Filer of the 20-F report
• ENERGY EXPLORATION TECHNOLOGIES (company) — Former name of NXT Energy Solutions Inc.
• PINNACLE OIL INTERNATIONAL INC (company) — Former name of NXT Energy Solutions Inc.
• Calgary (company) — City where the company's principal executive offices are located

FAQ

Risk Factors

• Volatility in Oil and Gas Prices [high — market]: The company's financial performance is significantly influenced by fluctuations in global oil and natural gas prices, which can impact exploration, development, and production decisions.
• Exploration and Production Risks [high — operational]: The exploration and production of oil and gas involve inherent risks, including the possibility of unsuccessful drilling, operational failures, and environmental incidents.
• Environmental Regulations [medium — regulatory]: The company must comply with stringent environmental laws and regulations related to oil and gas operations, which can lead to increased costs and operational constraints.

Industry Context

NXT Energy Solutions Inc. operates within the oil and gas exploration services sector, a capital-intensive industry subject to global commodity prices and regulatory frameworks.

Regulatory Implications

The company is subject to various regulatory requirements in the jurisdictions where it operates, including environmental, health, and safety standards pertinent to the oil and gas industry.

What Investors Should Do

1. Review the company's financial statements for the fiscal year ended December 31, 2023.
2. Analyze the risk factors section to understand potential challenges and uncertainties.
3. Assess the company's operational strategies and outlook for future exploration and development.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 20-F filing.
• 2024-04-26: Filing Date — Date the Form 20-F was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year 2023, providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $900,000 — ned below); receipt of the remaining US$900,000 from the Ataraxia Capital ("Ataraxia")
• $900,000 b — d approval of terms for the remaining US$900,000 by the Toronto Stock Exchange ("TSX"); t
• $5,079,612 — n raising an additional net proceeds of $5,079,612 and completed a SFD survey which genera
• $39,500 — yments to the Lessor of approximately US$39,500 until April 2022. In Q4-21 the Compan
• $1,210,000 — the extension include a principle of US$1,210,000, an interest rate of 12%, and monthly p
• $40,189 — rate of 12%, and monthly payments of US$40,189. The Company has an early purchase opti
• $1,179,649 — net U.S. dollar liabilities totaling US$1,179,649. Accordingly, a hypothetical 10% change
• $156,063 — 1, 2023 would have had an approximately $156,063 effect on the unrealized foreign exchan

Filing Documents

• nxt_20f.htm (20-F) — 1043KB
• nxt_ex21.htm (EX-2.1) — 19KB
• nxt_ex121.htm (EX-12.1) — 12KB
• nxt_ex122.htm (EX-12.2) — 12KB
• nxt_ex131.htm (EX-13.1) — 3KB
• nxt_ex132.htm (EX-13.2) — 4KB
• nxt_ex151.htm (EX-15.1) — 868KB
• nxt_ex152.htm (EX-15.2) — 4KB
• nxt_ex153.htm (EX-15.3) — 864KB
• nxt_ex152img1.jpg (GRAPHIC) — 3KB
• nxt_ex151img6.jpg (GRAPHIC) — 2KB
• nxt_ex151img5.jpg (GRAPHIC) — 3KB
• nxt_ex151img4.jpg (GRAPHIC) — 2KB
• nxt_ex151img1.jpg (GRAPHIC) — 5KB
• nxt_ex152img2.jpg (GRAPHIC) — 2KB
• nxt_ex153img1.jpg (GRAPHIC) — 4KB
• 0001654954-24-005090.txt (&nbsp;) — 8582KB
• nxt-20231231.xsd (EX-101.SCH) — 76KB
• nxt-20231231_lab.xml (EX-101.LAB) — 374KB
• nxt-20231231_cal.xml (EX-101.CAL) — 58KB
• nxt-20231231_pre.xml (EX-101.PRE) — 341KB
• nxt-20231231_def.xml (EX-101.DEF) — 180KB
• nxt_20f_htm.xml (XML) — 1257KB

Item 18

Item 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes No Auditor Name: MNP LLP Firm ID# 1930 Auditor Location: Calgary Alberta, Canada TABLE OF CONTENTS PART I ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS 5 ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 5 ITEM 3. KEY INFORMATION 5 ITEM 4. INFORMATION ON THE COMPANY 15 ITEM 4A. UNRESOLVED STAFF COMMENTS 25 ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS 25 ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 39 ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 53 ITEM 8. FINANCIAL INFORMATION 55 ITEM 9. THE OFFER AND LISTING 56 ITEM 10. ADDITIONAL INFORMATION 57 ITEM 11.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 66 ITEM 12.

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 66 PART II ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 67 ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS 67 ITEM 15.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 67 ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT 68 ITEM 16B. CODE OF ETHICS 68 ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES 69 ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES 69 ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS 69 ITEM 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT 69 ITEM 16G. CORPORATE GOVERNANCE 70 ITEM 16H. MINE SAFETY DISCLOSURE 70 ITEM 16K. CYBERSECURITY 70 PART III ITEM 17.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 71 ITEM 18.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 71 ITEM 19. EXHIBITS [note: remember that this need to be hyperlinked] 72 20-F for the year ended December 31, 2023 2 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS NXT Energy Solutions Inc. is a Calgary-based technology company whose proprietary airborne SFD survey system, applied in numerous basins around the world, uses the principles of quantum mechanics to infer stress anomalies of exploration interest. The method can be used both onshore and offshore to remotely identify areas conducive to fluid entrapment in order to recommend areas with commercial hydrocarbon and/or geothermal 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. Except for any historical information contained herein, the matters discussed in this Annual Report on Form 20-F contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to our financial condition, results of operations and business. These statements relate to analyses and other information which are based on forecasts of future results and estimates of amounts not yet determinable. This information also relate to our future prospects, developments and business strategies. These forward-looking statements are identified by their use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "will" and similar terms and phrases, including references to assumptions. These forward-looking statements involve risks and uncertainties, including current trend information, projections for deliveries and other trend projections, that may cause our actual future activities and results of op

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS This Form 20-F is being filed as an annual report under the United States Securities Exchange Act of 1934 , as amended, (the " U.S. Exchange Act ") and, as such, there is no requirement to provide any information under this item.

OFFER STATISTICS AND EXPECTED TIMETABLE

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE This Form 20-F is being filed as an annual report under the U.S. Exchange Act and, as such, there is no requirement to provide any information under this item.

KEY INFORMATION

ITEM 3. KEY INFORMATION A. [Reserved]. B. Capitalization and indebtedness. This Form 20-F is being filed as an annual report under the U.S. Exchange Act and, as such, there is no requirement to provide any information under this item. C. Reasons for the offer and use of proceeds. This Form 20-F is being filed as an annual report under the U.S. Exchange Act and, as such, there is no requirement to provide any information under this item. D. Risk factors. Investing in our common shares involves a high degree of risk. In addition to the other information included in this document, you should carefully consider the risks described below before purchasing our common shares. If any of the following risks actually occur, our business, financial condition and results of operations could materially suffer. As a result, the trading price of our common shares could decline and you might lose all or part of your investment. Our ability to continue operating. NXT is still in the early stages of realizing widespread commercialization of its SFD technology. Its ability to generate cash flow from operations will depend on its ability to service its existing clients and develop new clients for its SFD services. Management recognizes that the commercialization phase can last for several years, and that it can have significant economic dependence on a small number of clients, which can have a material effect on the Company's operating results and financial position. The events described in the following paragraphs highlight that there is substantial doubt about NXT's ability to continue as a going concern within one year after the date that the consolidated financial statements have been issued. The Company's current cash position is not expected to be sufficient to meet the Company's obligations and planned operations for a year beyond the date that the consolidated financial statements have been issued. Since 2022, the Company has deferred payment of certain operati

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View this 20-F filing on SEC EDGAR