NXT Energy Solutions Inc.

Climate Impact & Sustainability Data (2019, 2022)

Health, safety and the environment (including risks related to the novel coronavirus)
The emergence of alternative competitive technologies
Our ability to protect and maintain our intellectual property and rights to our SFD® technology
Our reliance on a limited number of key personnel
Our reliance on a limited number of aircraft
Our reliance on a limited number of clients
Counterparty credit risk
Foreign currency and interest rate fluctuations
Changes in, or in the interpretation of, laws, regulations or policies
General business, economic and market conditions (including global commodity prices)

Obtaining insurance to mitigate the risk of default on client billings
Reducing corporate costs by reducing the number of staff and by implementing new human resource policies to reduce staffing costs
Utilizing risk mitigation products offered by entities such as Export Development Canada including insurance coverage of contract accounts receivable, guarantee support for contract performance bonds and wrongful call insurance for such bonds
Securing the note receivable against assets of AGV’s affiliates

SFD® is environmentally friendly and unaffected by ground security issues or difficult terrain, minimizing disruptions to community life and surface use.

Launched Employee Share Purchase Plan (ESP Plan) in 2020, allowing employees to purchase Common Shares with company matching contributions.
Adherence to NXT's Code of Conduct and Business Ethics by sales representatives.

Establishment of a Board Committee to assume CEO duties following the passing of Mr. George Liszicasz.
Formal policies and procedures for pre-approval of audit and non-audit services by the Audit Committee.
Strong independent Board with multiple committees (Corporate Governance, Disclosure, Audit, Compensation, Strategic Planning).

Substantial doubt about NXT’s ability to continue as a going concern within one year.
Dependence on a small number of clients.
Volatility in oil and natural gas commodity prices.
Foreign currency fluctuations.
Reliance on a limited number of key personnel.
Reliance on specialized equipment.
Potential for geological conditions to limit SFD® survey applications.
Cybersecurity risks.
Limited public market for Common Shares.
Potential for dilution of ownership.
Risk of intellectual property infringement.
Hazards associated with flight operations.
Risks associated with operating in foreign countries (criminal activity, political instability, commercial disputes, corruption).
Credit risk from counterparties.
Tax matters in multiple jurisdictions.
Potential impact of natural disasters, epidemics, or other events.

Completed a private placement to raise additional capital.
Developing pipeline of opportunities to secure new revenue contracts.
Focus on national oil companies less affected by short-term oil price fluctuations.
Strategies to reduce the volatility of USD assets.
Developing interpretation algorithms to reduce reliance on human interpretation.
Researching new designs and constructing additional SFD® sensor devices.
Obtaining replacement cost insurance on each SFD® sensor.
Efforts to enhance data security infrastructure.
Ongoing technological improvement and development.
Formal documentation of research and development processes.
IP protection strategy (patents, trade secrets, confidentiality agreements).
Insurance coverage for flight operations and general business risks.
Due diligence on sales representatives and adherence to Anti-Bribery and Anti-Corruption Policy.
Accounts receivable insurance.
Risk mitigation products from Export Development Canada (EDC).