v3.26.1
Segment Reporting
 12 Months Ended
Dec. 31, 2025
Segment Reporting  
Segment Reporting

26. Segment Reporting

 

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, amended reportable segment disclosure requirements to include disclosure of incremental segment information on an annual and interim basis. Among the disclosure enhancements are new disclosures regarding significant segment expenses that are regularly provided to the chief operating decision-maker and included within each reported measure of segment profit or loss, as well as other segment items bridging segment revenue to each reported measure of segment profit or loss. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, and are applied retrospectively. The Company has adopted ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.”

 

The Chief Executive Officer of NXT Energy Solutions Inc. serves as the Company’s Chief Operating Decision Maker (“CODM”). The Company operates as a single business segment, focused primarily on the SFD® surveys.

As a single-segment entity, the Company complies with ASC 280-10-50-20, reporting segment profit or loss, significant expenses, and other segment items.  Given that the Company has one revenue stream and limited number of revenue contract, the CODM is focused on SFD®-revenue, SFD®- related costs and general and administrative expenses.

 

The Company has adopted ASU 2023-07 for the year ended December 31, 2024. Since the Company’s single segment represents the entire entity, certain financial information may be referenced in the primary financial statements instead of duplicated in segment disclosures.

 

 

 

For the years ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

SFD®-related revenue

 

$16,351,286

 

 

$644,294

 

 

$2,145,716

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Aircraft lease costs

 

 

-

 

 

 

91,237

 

 

 

364,013

 

Aircraft operations

 

 

2,831,343

 

 

 

1,524,743

 

 

 

876,804

 

Survey projects

 

 

2,926,798

 

 

 

405,788

 

 

 

1,008,309

 

SFD®-related costs, net

 

 

5,758,141

 

 

 

2,021,768

 

 

 

2,249,126

 

Salaries, benefits and consulting charges

 

 

1,636,261

 

 

 

1,791,482

 

 

 

1,512,150

 

Board and professional fees, public company costs

 

 

899,523

 

 

 

899,797

 

 

 

753,468

 

Premises and administrative overhead

 

 

779,575

 

 

 

782,218

 

 

 

822,019

 

Business development

 

 

311,086

 

 

 

303,546

 

 

 

91,235

 

Stock-based compensation

 

 

702,880

 

 

 

268,735

 

 

 

241,271

 

Total general and administrative expenses

 

 

4,329,325

 

 

 

4,045,778

 

 

 

3,420,143

 

Amortization

 

 

1,920,733

 

 

 

1,887,013

 

 

 

1,759,473

 

Interest expense, net

 

 

516,775

 

 

 

750,611

 

 

 

160,262

 

Foreign exchange (gain) loss

 

 

(32,923)

 

 

574,106

 

 

 

(8,028)

Loss (gain) on fair value remeasurement

 

 

5,418,502

 

 

 

296,534

 

 

 

-

 

Purchase of SFD® technology & other expenses

 

 

260,917

 

 

 

146,279

 

 

 

15,852

 

Segment net loss before income taxes

 

 

(1,820,184)

 

 

(9,077,795)

 

 

(5,451,112)

Income tax expense

 

 

496,965

 

 

 

-

 

 

 

-

 

Consolidated net loss

 

 

(2,317,149)

 

 

(9,077,795)

 

 

(5,451,112)