WINDSOR,
ON, Oct. 30, 2024 /CNW/ - NEXE Innovations
Inc. ("NEXE", the "Company", "we", "us" or "our") (TSXV: NEXE)
(Frankfurt: NX5) (OTC: NEXNF), a compostable and innovative
materials company, is pleased to announce its financial results for
the three-month period ended August 31,
2024 ("Q1 2025").
NEXE has been working with several customers and expects
larger-scale customer production to be on the horizon. The
revenues resulting from these contracts are expected to start in Q2
2025. We expect a solid growth rate in revenues in fiscal 2025.
"With our proprietary fully compostable resin, technology,
and on-shored facility, we believe we are redefining what's
possible. Larger-scale customer production is on the horizon, and
in our view, we are positioned to drive transformative growth in
the sustainable manufacturing space across different products and
industries," stated Ash Guglani, President and Co-founder of
NEXE.
Over the last two years, NEXE has invested in developing a
compostable solution and strategically invested in onshoring and
building a vertically integrated manufacturing facility. This
investment has resulted in a cost-competitive product with plastic
and aluminum pods. Onshoring and building a vertically integrated
facility has several benefits, including protecting our IP and
trade secrets, quality control, minimizing error rates, and
economies of scale. Another key strategic benefit is our in-house
tooling shop, which we expect will ensure minimal machine
downtimes and the ability to build prototypes and molds faster. We
believe this in-house capability will allow us to enter new markets
quickly.
As we implemented our new business model and fully onshored
strategy, the team was disciplined in maintaining a strong
financial position and keeping costs minimal. We believe the
fundamentals for the business remain strong and have a strong
financial position to execute the business plan, particularly:
- NEXE has a strong cash position to execute its strategy and
work with large-scale coffee companies. At the end of Q1 2025,
our total cash position is $15.6
million (including GICs and term deposits).
- NEXE has minimal debt. The current debt outstanding is
$0.6 million, related to a government
loan. NEXE's commitments at the end of the quarter were
$1.8 million, with minimal capex
expected over the next two years.
Q1 2025 Results:
During the three months ended August 31,
2024, the Company had a net income of $2,292,733 or $0.024 per share, compared to a net loss of
$2,040,355 or $0.021 per share for the comparable period last
year. The change from net loss to net income was predominantly a
result of the following:
- The Company owned property in Surrey,
BC, Canada, sold on
July 30, 2024, for gross proceeds of
$5,700,000 million, resulting in a
gain-on-sale of $3,848,348
less-cost-to-sell of $147,794
resulting in a net gain of $3,700,554.
- Revenue was $3,147 (August 31, 2023 – $87,702), and cost of goods sold was $11,425 (August 31,
2023 – $188,087). The cost of
goods included non-cash expenses, such as production machinery and
equipment depreciation.
- Selling, General, and Administrative expenses decreased to
$757,754 (August 31, 2024 - $1,065,030) due to lower consulting fees,
advertising and marketing, and compensation. The Company benefited
from consolidating operations to the Windsor facility. The management team
continues to maintain a disciplined approach to allocating
resources.
- A non-cash share-based compensation expense decreased to
$135,524 (August 31, 2023 - $250,972) for stock options granted to directors,
officers, and employees.
- Interest and accretion expense decreased to $34,114 (August 31,
2023 - $51,277) due to
declining government loan balances and the lease liability
elimination.
- Interest income increased to $157,000 (August 31,
2023 - $133,564) primarily
from the GIC deposits.
- Depreciation increased to $519,700 (August 31,
2023 - $391,852) due to
additional equipment purchased and assets becoming available for
use that were not previously depreciated.
- Research and development expenses decreased to $116,712 (August 31,
2023 ‐ $310,375). The Company
will continue to invest in R&D to develop new products,
technology, and formulations.
The Company's Q1 2025 financial statements and related
management's discussion and analysis are available on NEXE's SEDAR+
profile at www.sedarplus.ca and the Company's website at
www.nexeinnovations.com.
We also wanted to provide an update on our previously announced
investor relations arrangements. From our strong cash position and
working capital, we will be paying the fees associated with our
investor relations arrangements with Clarkham Capital Ltd., Torque
Capital Partners (SmallCapInvestor), Proactive Investors North
American Inc. and Independent Trading Group (ITG) Inc. We also
wanted to confirm that Chris Kaplan
will be providing the market-making services pursuant to our
market-making agreement with Independent Trading Group (ITG) Inc.
We discussed the details of these arrangements in our corporate
update news release issued on October 18,
2024.
*NEXE Innovations Inc. is not affiliated with,
endorsed, or sponsored by Keurig®. Keurig® is a registered
trademark of Keurig Dr Pepper Inc.
**NEXE Innovations Inc. is not affiliated with, endorsed, or
sponsored by Nespresso®. Nespresso® is a registered trademark of
Société des Produits Nestlé S.A
About NEXE Innovations Inc.
NEXE Innovations is focused on providing innovative compostable
material solutions and packaging to the B2B segment to help
businesses achieve their sustainability goals. NEXE Innovations has
developed a proprietary and patented compostable material that can
withstand heat, pressure, and water. Our flagship product, the NEXE
Pod, a BPI-certified compostable coffee pod, showcases our
material's durability and is an ideal substitute for plastic.
The NEXE pod is compatible with major coffee brewing machines
and is manufactured at NEXE's vertically integrated facility based
in North America. Discover our
innovative approach to sustainability at www.nexeinnovations.com
and join our journey on social media @nexeinnovations.
#compostablecoffeepods #sustainability #greentech
On behalf of the Company:
Ash Guglani
President & Director
For investor relations contact:
Kam Mangat
VP, Investor Relations & Corporate Strategy
invest@nexeinnovations.com
Office +1-604-359-4725
Mobile +1-604-359-4742
For media relations contact: media@nexeinnovations.com
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this release are forward-looking
statements or information, which include, but are not limited to,
expected timing for customer production and receipt of revenue,
consumer trends, industry innovation, the Company's use of working
capital, consolidation of operations and the Company's overall
business strategy, increases in production and revenue, and the
Company's long-term growth and development plans. Forward-looking
statements consist of statements that are not purely historical,
including any statements regarding beliefs, plans, expectations or
intentions regarding the future. Such information can generally be
identified by the use of forwarding-looking wording such as "may",
"expect", "estimate", "anticipate", "intend", "believe" and
"continue" or the negative thereof or similar variations. The
reader is cautioned that assumptions used in the preparation of any
forward-looking information may prove to be incorrect. Events or
circumstances may cause actual results to differ materially from
those predicted, as a result of numerous known and unknown risks,
uncertainties, and other factors, many of which are beyond the
control of the Company, including but not limited to, the Company's
ability to execute on its business strategy including the execution
of master manufacturing agreements on terms acceptable to the
Company, and those risks set out in the Company's
management's discussion and analysis for year ended May 31, 2024 under the headings "Risk and
Uncertainties". Such statements and information are based on
numerous assumptions regarding present and future business
strategies and the environment in which the Company will operate in
the future, including the demand for its products, anticipated
costs, and the ability to achieve goals. Factors that could cause
the actual results to differ materially from those in
forward-looking statements include receipt of necessary approvals
and general economic, market or business conditions.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement. The reader is
cautioned not to place undue reliance on any forward-looking
information.
The forward-looking statements contained in this news release
are made as of the date of this news release. Except as required by
law, the Company disclaims any intention and assumes no obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/nexe-innovations-announces-financial-results-for-the-three-months-ended-august-31-2024-302292209.html
SOURCE Nexe Innovations Inc.