VANCOUVER, BC, 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, 2022 (“Q1 2023”). NEXE continues to make progress on transitioning to a vertically integrated and injection molding manufacturing process, including manufacturing components in-house.
NEXE has a solid operational footprint and its 54,000 square feet facility in Windsor, Ontario is on track to start production by the end of the year.
The vertically integrated manufacturing process has many benefits from reducing supply chain risk, providing greater quality control and reducing operational costs. Costs are expected to further benefit as operations scale and as material costs will be locally sourced.
A key priority for NEXE is to build a strong customer base focusing on the private label and co-manufacturing segments of the market.
Currently, NEXE is in active discussions with several potential clients within the co-manufacturing and private label segments to fill its capacity as it comes online throughout 2023 and beyond. Recently, NEXE signed its first U.S. purchase order as part of a partnership with Awaken Brands Ventures Ltd.
NEXE will be providing its fully compostable and proprietary pod for Awaken Brands’ “ecobeans coffee” and “Urban Hippie” product lines. The partnership with Awaken Brands is expected to lead to additional co-packing superfood offerings and partnership arrangements for NEXE.
“We are pleased with the progress we continue to make as we transition from R&D to production. We are engaged in several conversations with potential clients in both Canada and the U.S.”, stated Ash Guglani, President, NEXE Innovations, “The 54,000 square feet Windsor facility is on track to be operational by year end and we are receiving a lot of employment interest and excitement from the local community”.
Key Highlights:
- Work continues to progress on the 54,000 square foot facility purchased by NEXE in Windsor, Ontario and is on track to be operational by year end. The capacity provided at the new Windsor facility is expected to be key to securing large commercial contracts and to working with private label and co-manufacturing CPG companies.
- The Company is in the process of obtaining various certifications, including the BPI certification. The certifications are not required to produce or sell NEXE’s products. NEXE expects to be granted certifications throughout the remainder of 2022 and early 2023.
- NEXE continues to file patents on its compostable materials, processes as well as its equipment. NEXE has a robust and comprehensive IP portfolio that it believes contributes to the overall value of the company.
- During the three months ended August 31, 2022, the Company had a net loss of $1,949,860 or $0.02 per share, compared to a net loss of $2,016,955, or $0.02 per share, for the comparable period last year.
- As of August 31, 2022, the Company had working capital of $28,588,131 (May 31, 2021 – $31,728,662) with cash and cash equivalents that totaled $12,176,298 (May 31, 2021 – $15,507,163) and investment in GICs that totaled $13,000,000 (May 31, 2021 – $12,955,307).
- NEXE is fully funded with $25.2 million in cash and GICs to weather the increased market volatility and focus on executing its strategy over the next 12-18 months.
The Company’s Q1 2023 financial statements and related management’s discussion and analysis are available on NEXE’s SEDAR profile at www.sedar.com and the Company’s website at www.nexeinnovations.com.
*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
