NXT Energy Solutions Inc.

Good day, ladies and gentlemen. My name is Omar, and I will be your conference operator today. At this time, I would like to welcome everyone to the NXT Energy Solutions 2022 First Quarter Operated and Financial Results Conference Call. All participants will be in listen-only mode for the first part of the conference call, with the ability to ask questions after the presentation by the company. For the question and answer session, if you would like to ask a question, please press star 1 on your device's keypad. Should you wish to cancel your question, please press star 2. I would now like to turn it over to Mr. George Lezizas, President and CEO of NXT Energy Solutions. Please go ahead, Mr. Lezizas.

Thank you very much, Omar. Welcome and thank you everyone for joining us for NXT Energy Solutions 2022 First Quarter Financial and Operating Results Conference Call. This is George and joining me on today's conference call is Eugene , Vice President of Finance and Chief Financial Officer. Director of Research and Development. Director of Geosciences for the Americas. Head of Interpretation and Project Engineer. Our Director of Geosciences for Africa, Asia, and Middle East is traveling for business the purpose of today's call is to briefly discuss the highlights of the release of nxt's 2022 first quarter financial and operating results the following update will be open following our update we will open up for lines for the line for questions Please note all statements made by the company and management during this call are subject to readers' advisory regarding forward-looking information and non-GAAP measures set forth in our Q1 2022 press release and MD&A issued May 12, 2022. All dollar amounts discussed in today's conference call are in Canadian dollars unless otherwise stated. The complete financial and operating results and consolidated financial statements for the 22 first quarter were published already on May 12 and are available on NXT's website, Cedar's website, and soon will be available on Edgard's website. Now over to Eugene for the financial review.

Thank you, George. As George mentioned, our 2022 first quarter financial statements and management discussion analysis were filed on CDAR's website on May 12th and will shortly be available on EDGAR. From a financial perspective, the focus remained on supporting the execution of the business development effort and continuing to control and optimize costs. Our financial results were as follows. Cash and short-term investments were $1.87 million at March 31st. A net working capital is $1.35 million. Accounts receivable payments of approximately $247,000 received in the first quarter. $154,000 in April of 2022 were also received and a further $390,000 is anticipated to be received in May. Operating activity used approximately $913,000 of cash during the quarter. There was no revenue for the quarter. For the quarter, NXT recorded a net loss of approximately $1.84 million, or 3 cents per share, based on 65.3 million weighted average common shares outstanding. This compares to a net loss of $1.65 million in the first quarter of 2021, or 3 cents per share. Total operating expenses for the first quarter are $1.79 million, including survey costs. This included non-cash expenses of 0.5 million dollars related to amortization and stock-based compensation expenses. General administrative expenses increased approximately $12,000 or 1% in the first quarter of 2022 compared to 2021 for the following reasons. Salaries, benefits, and consulting charges decreased $15,000 or 3% due to lower vacation expenses and consultant fees. Board and professional fees and public company costs decreased $11,000, or 6%. Premises administrative overhead costs increased $10,000, or 5%, as building costs increased, mostly due to higher carbon taxes. Business development costs were minimal in both comparative quarters as business development travel was reduced. And stock-based compensation expenses were higher in Q1 22 versus Q1 2021 by $30,000 due to higher accrued expenses with the RSU plan. To summarize some key financial points, we ended the quarter with $1.87 million of cash and short-term investments on hand, a net working capital balance of $1.35 million, and we received approximately $400,000 of outstanding accounts receivable so far this year with another approximately $390,000 expected to be received shortly. Our main focus continues to be on the execution of NXT's commercial opportunities. I would now like to hand the call back over to George to further discuss our business update and forward plans.