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 November 30, 2023 (“Q2 2024”). “As a company building from the ground up with an innovative new product, we are in an exciting phase where we believe we are building strong foundations with our “B2B” clients,” says NEXE Innovations Inc. in a statement.
“In Q2 2024, we continued to engage with well-established coffee companies and distributors, and our innovative compostable single-serve pods have been well-received, leading to repeat orders.”
“It’s important to remember that establishing these relationships takes time. Our clients carefully evaluate our operations and plan how to introduce our products, often starting with smaller orders and gradually increasing,” stated Ash Guglani, President and Co-founder of NEXE., “Our revenues might not follow a straight line but ebb and flow as these relationships solidify and grow. This is a normal part of the journey for a start-up like ours, and these fluctuations are steps towards building a robust, sustainable business”.
NEXE Innovations Fiscal Q2 2024 Results:
During the three months ended November 30, 2023, the Company had a net loss of $1,610,871 or $0.016 per share, compared to a net loss of $349,887 or $0.004 per share for the comparable period last year. The change in net loss was predominantly a result of the following:
- Revenue was $33,729 (November 30, 2022 – $9,301), and cost of goods was $88,060 (November 30, 2022 – $25,908). The cost of goods included non-cash expenses, such as production machinery and equipment depreciation. Depreciation in the cost of goods sold increased as new equipment has come online.
- Selling, General, and Administrative expenses decreased to $929,130 (November 30, 2022 – $951,161) due to lower overhead costs, lower consulting fees, and lower compensation. The Company benefitted from consolidating operations to its Windsor facility. The management team continues to maintain a disciplined approach to allocating resources.
- A non-cash share-based compensation expense of $151,062 (November 30, 2022 – $191,954) was recorded for stock options granted to directors, officers, and employees.
- Interest and accretion expense decreased to $47,335 (November 30, 2022 – $66,286) due to declining balances of the government loan and the elimination of the lease liability.
- Interest income decreased to $24,854 (November 30, 2022 – $201,597) primarily from the GIC deposits.
- Depreciation increased to $373,394 (November 30, 2022 – $213,472) due to additional equipment purchased.
- Research and development expenses increased to $76,749 (November 30, 2022 ‐ $56,918) as the company continues to develop new technology and formulations.
NEXE has a working capital of $15.4 million and a strong balance sheet to help execute its plans over the next two years. NEXE has also consolidated all of its operations to its Windsor facility from Surrey, positively impacting costs.
The Company’s Q2 2024 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
