WINDSOR, ON, Canada – NEXE Innovations Inc., a compostable and innovative materials company, is pleased to announce its financial results for the twelve-month and three-month period ended May 31, 2024 (“Q4 2024”).
During the quarter, the team continued to work with various potential business-to-business (B2B) customers and is currently in the final stages of negotiating master manufacturing agreements with multiple coffee companies.
NEXE has procured a supply of certain long lead items/raw materials to fulfill purchase orders. In the interim period, revenues will fluctuate quarter over quarter as customers are at various stages of discussions, and revenues related to the master manufacturing agreements are expected to start in Q2/Q3 2025.
“We believe we are positioned for success and driving it with a strategic, forward-thinking approach to reshape the market. Our BPI-certified compostable products are already proven, and with our fully integrated, on-shored facility – where we manufacture our proprietary resin – in our view, we are setting a new benchmark in sustainable manufacturing. This is expected to not only make us cost-competitive with plastic but will ensure we deliver superior quality components to our customers,” stated Ash Guglani, President and Co-founder of NEXE.
Fiscal 2023 Results:
For the year ended May 31, 2024, the Company recorded a net loss of $6,530,597, or $0.07 per share, compared to a net loss of $6,137,065, or $0.06 per share, for the twelve months ended May 31, 2023. The year-over-year differences are due to the following:
- Revenues increased to $149,264 (2023 – $49,758) and largely represent the sale to various companies, including low volume purchases by companies sampling the product as part of their decision making. NEXE is currently in the process of finalizing master manufacturing agreements with multiple companies for two-year terms. We expect to start processing some purchase orders related to these contracts in Q2 2025.
- Selling, General & Administrative expenses decreased to $3,646,171 (2023 – $4,453,682) primarily due to lower marketing, consulting, and professional fees. NEXE also decreased salaries and management fee expenses. This is the fourth year of decrease as the Company maintains a disciplined approach to managing expenses.
- Depreciation increased to $1,614,650 (2023 – $987,551) due to additional equipment purchased.
- The Company recorded a non-cash interest expense of $180,548 (2023 – $257,459) related to the accretion of interest associated with the interest-free Government loan from the Western Innovation program.
- Research and development expenses increased to $764,902 (2023 – $380,089) as NEXE invests in product development to stay ahead of the curve.
- A non-cash share-based compensation expense of $635,276 (2023 – $713,293) was recorded for stock options granted to directors, officers, employees, and advisors.
The Company’s Q4 2024 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.
