NEXE Innovations Announces Financial Results for the Three Months Ended August 31, 2024
WINDSOR, ON, Oct. 30, 2024 /PRNewswire/ - NEXE Innovations Inc. ("NEXE", the "Company", "we", "us" or "our") (TSXV:NEXE) (Frankfurt: NX5) (OTC:NEXNF), 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. We expect a solid growth rate in revenues in fiscal 2025.
"With our proprietary fully compostable resin, technology, and on-shored facility, we believe we are redefining what's possible. Larger-scale customer production is on the horizon, and in our view, we are positioned to drive transformative growth in the sustainable manufacturing space across different products and industries," stated Ash Guglani, President and Co-founder of NEXE.
Over the last two years, NEXE has invested in developing a compostable solution and strategically invested in onshoring and building a vertically integrated manufacturing facility. This investment has resulted in a cost-competitive product with plastic and aluminum pods. Onshoring and building a vertically integrated facility has several benefits, including protecting our IP and trade secrets, quality control, minimizing error rates, and economies of scale. Another key strategic benefit is our in-house tooling shop, which we expect will ensure minimal machine downtimes and the ability to build prototypes and molds faster. We believe this in-house capability will allow us to enter new markets quickly.
As we implemented our new business model and fully onshored strategy, the team was disciplined in maintaining a strong financial position and keeping costs minimal. We believe the fundamentals for the business remain strong and have a strong financial position to execute the business plan, particularly:
NEXE has a strong cash position to execute its strategy and work with large-scale coffee companies. At the end of Q1 2025, our total cash position is $15.6 million (including GICs and term deposits).
NEXE has minimal debt. The current debt outstanding is $0.6 million, related to a government loan. NEXE's commitments at the end of the quarter were $1.8 million, with minimal capex expected over the next two years.
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 ...
