WINDSOR, ON, Canada – NEXE Innovations Inc., 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.
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.
