VANCOUVER, BC, Canada – Nexe Innovations Inc., a compostable materials company is pleased to announce its financial results for the twelve-month period ended May 31, 2022 (“FY2022”). FY2022 was an important year for Nexe, as the Company focused on building a solid operational footprint, a key part of its ongoing strategy.
After commercializing its compostable pod technology, Nexe Innovations focused on vertically integrating its operations, including transitioning to an injection molding manufacturing process and manufacturing components in-house.
With the operational footprint in place, Nexe is focused on growing its customer base and targeting the private-label and co-manufacturing segments of the coffee and superfoods market.
“Despite the challenges of building a new operation during COVID and the pivot to moving to a vertically integrated and injection molding manufacturing process to lower supply chain risks and have greater control over quality, initially impacted our progress, we have subsequently made significant strides over the last few months”, stated Ash Guglani, Nexe’s President, “We are receiving numerous in-bound inquiries from businesses that are interested in our compostable materials and our sales pipeline is active.”
Nexe Innovations twelve-month results: Key Highlights
After achieving scientific and commercial validation of the Nexe pod, NEXE has demonstrated key competitive features of the pod in two different retail formats and the NEXE Coffee brand is available online at nexecoffee.com, ecscoffee.com and on Amazon Prime.
Nexe hired a seasoned salesperson from the consumer-packaged goods (CPG) coffee space. The new VP of Sales and Marketing, Chris Murray will be focused on building a talented team to meet the needs of the private label/co-manufacturing market and growing revenues. The private label/co-manufacturing segment of the market is an important and primary focus of Nexe’s strategy going forward. Management believes the re-focus in sales strategy is a more prudent allocation of Nexe’s capital to target larger volume commercial contracts with established distribution channels versus building a new retail coffee brand requiring large marketing spend and more resources. NEXE expects a greater return on investment targeting the private label and co-manufacturing market and a more reliable way to fill its capacity as it comes online over the next few months.
The 54,000 square foot facility purchased by Nexe in Windsor, Ontario, a key industrial hub is expected 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 work 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.
A large portion of Nexe’s investments in capital are complete and Nexe benefitted during the year on the weaker Euro as most of the equipment purchased was based in Euro.
As of May 31, 2022, Nexe had working capital of $31,728,662 (May 31, 2021 – $49,501,770) with cash and cash equivalents that totaled $15,507,163 (May 31, 2021 – $50,526,731) and investment in GICs that totaled $12,955,307 (May 31, 2021 – $0).
Nexe Innovations is fully funded with $28.5 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 FY2022 audited 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