# NXT Energy Solutions Inc.

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/fi/companies/NXT Energy Solutions Inc.).

## Overview

NXT Energy Solutions Inc. is a Calgary-based technology company that provides proprietary airborne SFD® surveys for oil and gas and geothermal exploration. Its system uses stress-anomaly data to identify areas that may support fluid entrapment, helping clients prioritize prospects, land commitments and additional exploration spending across onshore and offshore basins.

## Products & services

• SFD® airborne exploration surveys
• SFD® data acquisition and processing
• Geological interpretation and prospect recommendations
• Hydrocarbon exploration screening
• Geothermal potential assessment

- **SFD® Oil and Gas Surveys** (85%) — Airborne surveys identify stress anomalies associated with possible hydrocarbon accumulation.
- **SFD® Geothermal Assessments** (10%) — SFD® data is applied to screen areas with potential for commercial geothermal resources.
- **Data Interpretation and Integration** (5%) — NXT processes, interprets and integrates survey data into exploration recommendations.

- SFD® airborne exploration surveys
- SFD® data acquisition and processing
- Geological interpretation and prospect recommendations
- Hydrocarbon exploration screening
- Geothermal potential assessment

## Customers

NXT sells SFD® survey contracts primarily to independent oil and gas exploration companies seeking to reduce uncertainty before committing to land, seismic and drilling programs. Customers use the service to identify areas conducive to fluid entrapment and prioritize prospects across difficult terrain or locations with ground-security constraints. The same technology can be applied by geothermal developers evaluating areas with potential commercial heat or fluid resources.

- **Independent oil and gas exploration companies** (primary) — Purchase SFD® surveys to screen basins and focus exploration capital on higher-potential areas.
- **International upstream operators** (primary) — Use airborne stress-anomaly information to support prospect ranking across onshore and offshore acreage.
- **Geothermal developers** (emerging) — Apply SFD® assessments to identify areas that may support commercial geothermal resources.
- **Resource-rights and exploration decision makers** (secondary) — Use survey interpretations to inform land commitments, data purchases and prospect selection.

- Independent oil and gas explorers seeking prospect screening
- Exploration companies prioritizing land and drilling commitments
- Operators evaluating difficult or security-sensitive terrain
- Geothermal developers screening resource potential
- Energy clients seeking lower-cost early-stage exploration data

## Geography

NXT is headquartered in Calgary, Alberta, and conducts surveys in exploration basins around the world. Its airborne method can be used onshore and offshore and is designed to operate without extensive ground access, which supports work in remote, difficult or security-sensitive locations. A 2026 contract with an independent oil and gas exploration company in South Asia illustrates the company’s international operating reach.

- **Canada** — Calgary headquarters; no country-level revenue share disclosed.
- **South Asia** — A 2026 SFD® survey contract was announced; contract value and revenue share were not disclosed.
- **Other international exploration basins** — Reports describe applications in basins worldwide but do not provide regional revenue percentages.

- Calgary headquarters supports technology and commercial operations
- Surveys are applicable across international exploration basins
- Onshore and offshore deployment broadens addressable markets
- Airborne acquisition reduces dependence on difficult ground access
- South Asia is an active contract market in 2026

## Strategy

NXT’s strategy is to commercialize the SFD® system as an early-stage exploration decision tool for oil and gas and geothermal customers. The company is pursuing international survey contracts, including work in South Asia, while using airborne deployment and integrated interpretation to differentiate its offering from more ground-intensive exploration methods. Expanding customer adoption and converting survey activity into repeat basin and prospect work are central to scaling the business model.

- **Win additional international SFD® survey contracts** (short-term) — More contracts increase utilization of the proprietary survey platform and broaden customer references.
- **Expand SFD® applications beyond conventional oil and gas** (medium-term) — Geothermal screening creates an adjacent market and diversifies potential sources of survey demand.
- **Strengthen the value proposition of integrated interpretation** (medium-term) — Recommendations linked to land, data and prospect decisions can make SFD® more embedded in customer workflows.

- Expand international SFD® survey contract activity
- Target oil and gas exploration companies with costly drilling decisions
- Apply SFD® technology to geothermal exploration opportunities
- Use airborne acquisition to access remote and difficult terrain
- Convert survey data into actionable prospect recommendations
- Build repeat demand through basin and prospect prioritization

## Risks

NXT’s business depends on a limited number of exploration contracts, customer acceptance of the SFD® methodology and the ability to complete surveys within estimated costs. Exploration budgets fluctuate with commodity prices and financing conditions, while international projects add counterparty, currency, regulatory and security exposure. The company also faces material valuation risk because its intellectual property is central to its business and is tested for impairment using forecast revenue and market-based assumptions.

- **Customer and contract concentration** [high] — A project-based survey model can produce volatile results if a small number of contracts are delayed, cancelled or not renewed.
- **Exploration-cycle sensitivity** [high] — Oil and gas exploration budgets depend on commodity prices, access to capital and operator risk appetite.
- **SFD® technology acceptance** [high] — The commercial model relies on customers viewing SFD® results as sufficiently reliable for land and exploration decisions.
- **International operating exposure** [high] — Projects in foreign jurisdictions may face security restrictions, permitting issues, currency movements and collection challenges.
- **Intellectual property impairment** [high] — The carrying value of intellectual property depends on forecast SFD® revenue, market capitalization and comparable revenue multiples.
- **Contract execution and cost estimation** [medium] — Revenue and project economics depend on completing acquisition and interpretation work within anticipated direct survey costs.

- Exploration spending falls when oil and gas prices weaken
- A small contract base can create volatile revenue timing
- Customers may not adopt or renew SFD® surveys
- International projects face regulatory and security constraints
- Survey costs may exceed estimates on incomplete contracts
- Intellectual property impairment could materially reduce asset values

## Accounting

SFD® survey revenue is recognized over time as NXT performs acquisition, processing, interpretation and integration services, using direct survey costs incurred relative to total expected costs as the progress measure. This approach makes reported revenue and profit sensitive to estimates of total costs for incomplete contracts and the timing of survey milestones. Other material judgments include intellectual-property impairment, convertible-debenture fair values, going-concern assumptions, useful lives and stock-based compensation.

- **Over-time revenue recognition** — The timing of revenue depends on survey progress rather than only final delivery.
- **Input-method contract estimates** — Changes in expected costs can alter recognized revenue and profit on incomplete contracts.
- **Intellectual property impairment** — Weak commercial performance or valuation assumptions may produce a material impairment charge.
- **Convertible-debenture fair value** — Changes in valuation assumptions can create non-cash gains or losses.
- **Expected credit losses** — Customer credit deterioration can reduce reported earnings and working capital.
- **Going-concern and useful-life estimates** — Changes affect asset carrying values, amortization and disclosures.

- SFD® revenue is recognized over time under contract progress
- Direct costs incurred measure progress toward completion
- Forecast total survey costs affect current-period revenue
- IP impairment testing depends on revenue and market assumptions
- Convertible debentures require fair-value remeasurement
- Receivables require expected-credit-loss estimates

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*Last updated: 2026-09-08T05:51:40.260724+00:00*