All participants, thank you for standing by. The conference is ready to begin. Good day, ladies and gentlemen. My name is Patrick, and I will be your conference operator today. At this time, I would like to welcome everyone to the NXT Energy Solutions 2021 fourth quarter operating 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 answer session, if you would like to ask a question, please press star one on your device's keypad. Should you wish to cancel your question, please press star two. I would now like to turn the meeting over to Mr. George Liszicasz, President and CEO of NXT Energy Solutions. Please go ahead.
Thank you, Patrick. Welcome, and thank you everyone for joining us for NXT Energy Solutions 2021 fourth quarter and year-end financial and operating results conference call. This is George Liszicasz, and joining me on today's conference call is Eugene Woychyshyn, Vice President of Finance and Chief Financial Officer, Dr. Xiang Gui, Director of Research and Development, Enrique Hung, Director of Geosciences for the Americas, Mohammed Saqib, Head of Interpretation and Project Engineer, and Rashid Tippu, Director of Geosciences for Africa, Asia, and Middle East. The purpose of today's call is to briefly discuss the highlights of the release of NXT's 2021 fourth quarter and year-end financial and operating results. Following our update, we will open up the line for questions.
Please note all statements made by the company and management during this call are subject to reader's advisory regarding forward-looking information and non-GAAP measures set forth in our Q4 2021 year-end press release and MD&A issued March 31. 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 2021 fourth quarter and year-end were published on March 31 and are available on NXT's website, SEDAR's website, and soon will be available on EDGAR's website. Now over to Eugene for the financial review.
Thank you, George. As George mentioned, our 2021 fourth quarter and year-end financial statements, management discussion and analysis, and annual information report were filed on SEDAR's website on March 31 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 CAD 2.81 million at December 31, 2021, and net working capital was CAD 2.82 million. Company received USD 200,000 of payments on outstanding accounts receivable in February. Operating activities provided CAD 76,000 of cash during the quarter and used CAD 1.03 million for the year. Revenue for the full year was CAD 3.13 million.
For the fourth quarter, NXT recorded a net loss of approximately CAD 1.57 million or CAD 0.02 per share based on 65.0 million weighted average common shares outstanding. This compares to a net loss of CAD 1.65 million for the fourth quarter of 2020 or CAD 0.03 per share. For 2021, NXT recorded a net loss of approximately CAD 3.12 million or CAD 0.05 per share based on 64.7 million weighted average common shares outstanding. This compares to net loss of CAD 6.03 million during 2020 or CAD 0.09 per share. Total operating expenses for the quarter were CAD 1.56 million, including survey costs. This included non-cash expenses of CAD 0.53 million related to amortization and stock-based compensation expenses.
Total operating expenses for 2021 were CAD 6.03 million, including survey costs. This included non-cash expenses of CAD 2.06 million related to amortization and stock-based compensation expenses. G&A expenses increased approximately CAD 50,000 or 6% in the fourth quarter of 2021 compared to 2020 for the following reasons. Salaries, benefits, and consulting charges increased CAD 29,000 due to the phasing out of the Canada Emergency Wage Subsidy, offset by lower vacation expense. Board professional fees of public company costs decreased CAD 45,000 or 27% due to decreased professional fees. Premises and administrative overhead costs increased CAD 52,000 or 36% due to the company benefiting fully from the Canada Emergency Rent Subsidy in the fourth quarter of 2020. The program ended in early October 2021.
Business development costs increased CAD 35,000 as business development travel resumed in December 2021. There was minimal travel in 2020 due to the COVID-19 pandemic. Stock-based compensation expenses were lower in 2021 versus 2020 by CAD 22,000 due to lower RSU and employee share purchase plan expenses. The G&A expenses decreased CAD 151,000 or 5% for the full year 2021 compared to 2020 for the following reasons. Salaries, benefits, and consulting charges increased CAD 102,000 due to the decrease in Canada Emergency Wage Subsidy rate offset by lower vacation expense. Board and professional fees and public company costs decreased CAD 200,000 due to lower professional fees. Premises administrative overhead decreased CAD 80,000 due to receipt of the Canada Emergency Rent Subsidy for most of 2021.
Business development costs decreased CAD 92,000 as travel restrictions continued due to the COVID-19 pandemic for most of the year. Stock-based compensation expenses were higher in 2021 versus 2020 by CAD 119,000 due to recognizing the RSU and the employee share purchase plan expenses for the full year. To summarize some of the key financial points, we ended the quarter with CAD 2.81 million of cash and short-term investments on hand and a net working capital balance of CAD 2.82 million. We received $200,000 in February for outstanding receivables with respect to the pre-existing SFD data sale, with the remaining CAD 425,000 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.
Thank you, Eugene. First, I want to convey my sincere hope that everybody is well and continues to stay healthy at this time. As Eugene mentioned, although there were no survey revenues in Q4, the company did generate CAD 3.13 million of revenue for the year, which was a significant improvement from the CAD 137,000 generated in 2020. Still below our expectations of what we believe this company is capable of generating, given the benefits of our technology offers and the new opportunities that exist in the marketplace today. That being said, the quarter remained a very productive period for the company on multiple fronts. We were pleased to announce earlier in the summer that energy exploration veteran Gerry Sheehan joined our board of directors.
Gerry brings almost 40 years of experience and knowledge working in oil and gas exploration, development, and production. From the moment Gerry arrived, he has become an integral part of our team, contributing his expertise to the company. We are definitely happy to have him on board. Since Gerry joined the board, he has been sharing his expertise and industry network to further our business and actively involved in our business development opportunities. We are very grateful for that. Regarding the oil and gas front developments, NXT had a very busy start to 2022, pursuing a number of strategic opportunities, which gives me a great deal of confidence today that our collective efforts will materialize into future success, both short-term and long-term. Business development efforts have substantially progressed throughout the winter in our core regions of focus in Africa, Asia, and South America.
As commodity prices have rebounded, we are witnessing an increased level of exploration activities. NXT remains highly confident in this in its approach to realize near-term and long-term business opportunities. With respect to the pre-existing SFD data sales, in Q2 2021, the company has completed the sale and delivery of existing SFD data to one of our customers. NXT has received payment of $1.8 million as of December 31, 2021. $200,000 in February 2022, with the remaining expected to be received in Q2 2022. NXT is working on two opportunities in Central Asia. One of these is a fully financed E&P company with significant production and land base. The other one is a junior E&P that is currently securing the necessary financing for their upstream programs, which includes an SFD survey.
We have submitted commercial bids for SFD surveys to both companies. With respect to our other Asian projects, we are in discussions with multiple enterprises for SFD survey opportunities. Three of these opportunities have advanced beyond the technical discussion stage. Additional work is required, but suffice to say, steady progress is being made. We will continue updating our shareholders as we're on Africa business development. We recognize Africa as one of the most important continents for sustained hydrocarbon and geothermal exploration. The utilization of SFD will mitigate overall exploration risk, provide time and cost-effective solutions in an environmentally friendly manner. Pursuant to this, I am pleased that the significant effort expended in Nigeria is now projected to culminate into projects for 2022.
We believe that success in 2022 will lead to further opportunities in 2023 and 2024. I attribute this entirely to the value of the information SFD delivers and the efforts of our partner, the GMD of PE Energy, Mr. Daere Akobo. Nigeria's frontier basins remain our priority as we believe our business with the NOC and other international explorers will continue. NXT is engaged in leveraging the Nigerian experience into survey opportunities in the Sub-Saharan countries. Underscoring our increased level of confidence, we will soon be undertaking a new airborne survey, and to that end, we have completed an extended airplane maintenance program in order to meet increased survey capacity. In addition, we have also started the appropriate paperwork on aircraft export/import certification and are in the process of obtaining other essential permits that are required for foreign surveys.
We'll keep you informed of our progress. Continuing with the geothermal development update. As previously announced, NXT received advisory services and funding from the National Research Council of Canada's Industrial Research Assistance Program, which was utilized to support the research and development of the SFD technology for geothermal applications. We are grateful to NRC, IRAP, and their advisors for all their contributions to NXT as we continue to advance our efforts toward attaining commercialization of our SFDGT technology. The company has successfully completed phase one of the SFDGT sensor development program and currently preparing a submission of phase two for NRC's consideration. NXT is actively pursuing SFDGT business opportunities in Canada and abroad. A number of potential clients are considering using SFDGT for prospecting. Now let us turn our attention to Latin America projects.
We continue working to be a service provider within the portfolio of a large Houston-based geophysical company that holds corporate service contracts with NOCs throughout Latin America. NXT is also in discussions with the regulatory authority of three Latin American countries with respect to government-funded frontier evaluation programs. SFD would be used to enhance and/or develop geophysical data banks in these regions, which would be in alignment with the stated objective of increasing exploration and production. We are optimistic the current negotiations are a step to a new and repeat opportunities in Latin America. With respect to Brazil, the company has received notice that its Brazilian patent application has been granted, bringing the total number of countries in which NXT holds patents to 46. Brazil is a compelling opportunity for NXT. The country has an extensive oil and gas, contributing over 10% of its GDP.
NXT believes this is an attractive market opportunity for its environmentally friendly SFD technology, and with the Brazilian patent in hand, this will help to accelerate discussions with potential industry partners in the region. In summary, SFD hydrocarbon survey opportunities continue to progress well, not only within the core areas of focus in Africa, Asia, and South America, but elsewhere. Additionally, we have made progress with our SFDGT technology and continue to be in discussions with multiple geothermal companies for its services. We understand that the year has not started as we hoped for, but we are confident the rest of the year should prove fruitful. With the CAD 3 million in revenue, which is CAD 3 million more than the year before, today, we see clear signs of many suspended exploration programs being reactivated. NXT has to seize the opportunities now that is in front of us.
As always, thank you for your patience. Thank you. On behalf of our board of directors and the entire team at NXT, I want to thank all our shareholders for their continued support. We wish the best of health to you and to your families. Back to you, Patrick.
Thank you. We'll now take questions from the phone lines. As a reminder, you may press star one on your device's keypad if you have a question. We ask that you please limit yourself to one question and one follow-up. The first question is from Michael Melnick from Moore Capital Management. Please go ahead.
Hi, it's Mike. Just wondering if you know if you can amplify a little bit on the contract potential in Nigeria, the African contract potential, size and possibly the timing, because it seems like it's been pushed back several times. Just wondering if you get a little closer there.
Hi, Mike, this is Rashid. We are working towards a contract. You know, like, some paperwork and some approvals are on its way within this year. Based on you know, this year project was based on the previous work done back in 2019. You know, that's where we are. Based on this you know, what project we are working towards, we are seeing there will be a potential of next two years follow-up project based on the results. Because if you recall back in 2019, we surveyed two basins, Benue Trough and Chad, which is a large area. We made several recommendations.
They are selecting a portion of those recommendation for this year. We are anticipating, you know, this year's survey will also add a value to the existing data. We are looking for the next couple of project in following years. Yeah.
Mike, I would like to add. Thank you, Rashid. I would like to add that NNPC wants to project itself as a better corporation worldwide. We know the history. As a result of that, there are some protocols that have been implemented that requires NXT as a service provider to give much more detailed information on the survey, the budgets, the breakdowns and so on and so forth that previously was required. That was the, I think, the main reason. We have met now all requirements, and we are very positive that we are going to get a contract going very soon or fairly soon.
Okay, that sounds good. Just one real quick follow-on question. With oil prices over $100 a barrel, are you doing anything different on your marketing, or are you getting contacted by some of your old clients who, when the price was $50 a barrel, weren't that interested, now at $100 might be interested? Are you seeing any activity with new clients or old clients that are more interested now at the higher price?
Hello, Mike, this is Enrique. Well, I can give you an example for Latin America. They are bumping their exploration budgets both in the E&P units or business units and in the government. Latin America looks good. We have three fronts over in those countries. We are also linking some of the latest work we did in December 2021 in Asia that has some relationship with the international activities that can be reflected in Latin America. We're very confident. Yeah, the oil price is a big push for us. Some of the countries are planning to duplicate their production. There's a long term, you know, and looks like it's a good path for us to follow.
Okay, thank you.
Thank you, Mike. I think if you look at the overall situation, there is a revival, right, in exploration. We have been contacted by clients and also representatives that we worked with before in a number of countries that the national company or the regulatory body would like to utilize the technology extensively. We are very, very positive and hopeful on that, and confident that if they come to us, that's a very good sign.
Thank you. As a reminder, you may press star one if you have a question. The next question from Thomas Wood. Please state your company. Your line's open.
Hey, this is Thomas from Woodlet. I kind of wanted to play off of Mike's question. First off, really exciting on the Asian, the African fronts. It's great to hear that stuff's moving along, so I'm really excited for 2022. I think I just wanted to ask a little bit about the marketing that you were talking about. George, you mentioned that you remain really confident in the NXT approach. I think, you know, I'm coming at this fairly ignorantly. I probably don't know much about how the hydrocarbon market works, so pardon the ignorance. I wonder if you could just go over kind of the marketing approach, because I think the fundamental thing that I and other investors that have been involved for 10+ years are feeling is that we have this game-changing IP.
I just wonder, do people know about it? You know, I'm reading articles all the time about geothermal exploration. I'm just wondering, what is our strategy there, either geothermal or hydrocarbon, to get the word out, to prove the technology? You know, if we've got this major disruptor, why don't people know about it? Happy to take the question offline. Thanks for the answer. Thanks.
Thank you very much, Thomas, and thank you very much for your support. I would just start, you know, with the technology itself, how much everything changed in terms of the acceptance of the technology. We have been on a continent, literally, and did presentations to a number of companies, I think it was like 12 companies. Each and every one of them is a multi-billion dollar corporation, and they require the technical presentation to be given to them. Usually our technical presentation is about 175 slides, so we compacted it to 44. We gave the presentation, it was downloaded throughout the continent by institutions, universities and so on, and it came back positive.
I think that we have reached the point now that if the boundary of resistance is breaking down with respect to the technology. Also, there are a number of technologies that have been now published that relates to SFD. It's not SFD, but part of it relates to SFD, and it clearly shows, you know, that the technology can be built. That's one part. The other part is that we are trying to get boots on the ground everywhere, wherever we believe, you know, that there is a significant opportunity that exists. And that in Africa, we have about six countries right now where NXT is being represented, right? In Asia, there are equally the same number of people, salespersons and so on the ground.
We don't pay anybody anything until they bring the contract. The next step will be, hopefully we're gonna get a contract going on very shortly that will include super majors and so on, that we can work together with them. I think that's gonna be the final barrier to break, onshore, offshore. We are very confident, you know, that I'm looking forward to it actually, to tell you the truth. That will be the ultimate goal and objective of NXT, that they will see how well this technology works.
Great. Thanks, George. Appreciate it.
Thank you. The next question is from Peter Mark, from MARK Capital Management. Please go ahead.
Hey, guys. Thanks for the update again. George, I just wanted to follow up a little bit on Thomas's question on the marketing, but specifically related to the geothermal. You guys have all these great case studies on your website. You know, you go down, great demonstration of how the sensors work over various, you know, hydrocarbon fields over the years. I was wondering, are there any plans to do that on the geothermal side? Then ultimately, how are you guys viewing, like, a timeframe for a patent? Have you talked about that? Just any insights you have there would be helpful. Thanks.
Hi, Peter. Thank you very much for your question. I didn't understand the first part. I couldn't hear it very well, so somebody can-
Marketing.
Marketing the SFDGT.
Yeah.
Right now, we have about three companies in two countries that are interested in geothermal projects using, I mean, projects using SFD surveys to identify high permeability conduits and so on in the subsurface. At the same time, we are trying to move to this phase two with IRAP, you know, the people who finance the development of the technology. That would include universities, nanotechnology fabrications and so on and so forth. As you know, we are a small company, you know. It is a requirement that we want to do and want to further the technology and from the prototype phase. There are a number of fabrication methods that we need to review.
Create a technology that will, not only the geothermal will benefit from, but also the SFD technology itself. Our goal is every other day, there's another company who does geothermal activities that, we can work with. Also financing companies come to us now that they would like to finance projects or use the SFD with their existing clients. I am quite confident that, in the next couple of months or by Q3, we are going to have projects undertaken and move forward.
Thank you.
Oh, Peter.
The next question is from David Edelman. Please state your company. Your line is open.
Hi, my name is David Edelman. I'm a shareholder. Hi, George. We've had several contracts that seem to get us up to the altar, but we keep being left hanging there. What is it gonna take to impact our shareholder value? Because it just seems like the money that we're getting is burns up by our burn rate. What's gonna impact it, and how long will it take?
Thank you, David. It's Eugene. We are, you know, again, confident on our commercial opportunities. As George had explained earlier, you know, that's where we're gonna be generating our cash from in the short term.
Okay. Nigeria was supposed to happen long time ago, and I know it was a question asked earlier, but I couldn't hear your answer as to how long it's gonna take to get in place.
Was that for Brazil or for? Sorry, that wasn't clear.
For Nigeria.
For Nigeria? We are, as George explained, in the near short term, but once we get through a few more hurdles.
Okay. Thank you.
Thank you, David.
Thank you. This concludes the question and answer session. I would like to turn the meeting back over to Mr. Liszicasz.
Thank you very much, everybody, for participating in our investor's conference call. I hope you know that the next call is gonna be business. Thank you again for your support.
Thank you. The conference has now ended. Please disconnect your lines at this time, and thank you for your participation.