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NEXE Innovations Announces Financial Results for the Twelve-Month Period Ended May 31, 2023

NEXE Closes Out a Successful Year Having Moved Into Production and the Next Phase of Operations

VANCOUVER, BC, Sept. 28, 2023 /PRNewswire/ - NEXE Innovations Inc. ("NEXE" or the "Company") (TSXV: NEXE) (Frankfurt: NX5) (OTC: NEXNF), a compostable and innovative materials company, is pleased to announce its financial results for the twelve-month and three-month period ended May 31, 2023 ("Q4 2023").

Fiscal 2023 was a pivotal year for NEXE Innovations, with several key accomplishments. The Company has transitioned into production and, subsequent to year-end, as previously announced, has onboarded three co-manufacturing customers – a key segment for NEXE.

2023 Accomplishments:

  • During the year, NEXE completed building its Windsor Facility and transitioned to an in-house, end-to-end manufacturing process where the new facility is equipped for compounding resin, injection molding key components of NEXE's proprietary, single-serve beverage pods, and dosing and sealing the pods for commercialization. The Company received its occupancy permit, installed and tested key equipment, and started to build out the operations team in March 2023. By the end of July, the Windsor Facility was fully commissioned to produce food-grade components for its proprietary single-serve beverage pods, hired key personnel, and the Company moved into production.

  • NEXE successfully met the stringent testing requirements for certification from the Biodegradable Products Institute (BPI) for its fully compostable, single-serve beverage pod and associated components at the end of June 2023. The BPI certification is a third–party verification of ASTM D6400 and D6868 standards for compostable products. Being awarded the BPI certification means the product has undergone a rigorous testing process, confirming that the company has met the ASTM compostable standards. The BPI certification is not required to sell our products but does assure customers that NEXE's products are environmentally friendly and comply with the stringent rules established by BPI.

  • Since the beginning of August, NEXE has onboarded three co-manufacturing clients: Awaken Brands Ventures Ltd., Neighborhood Coffee Company, and Rooted Grounds Coffee Company. The interest surrounding NEXE's proprietary BPI-certified pod continues to gain momentum, and NEXE continues to advance discussions to drive private label and co-manufacturing opportunities. We expect production will continue to ramp up over the next several months. NEXE's goal is to build a strong base of recurring revenues.

  • NEXE completed transitioning its retail brand NEXE Coffee to the BPI-certified, single-serve pod. The retail brand of NEXE will be produced in Windsor, Ontario and is available for purchase at All operations are now consolidated at the Windsor Facility, and NEXE is selling its Surrey, B.C. facility.

Fiscal 2023 Results:

For the year ended May 31, 2023, the Company recorded a net loss of $6,137,065 or $0.06 per share, compared to a net loss of $8,339,913, or $0.09 per share, for the twelve months ended May 31, 2022.

  • Revenues increased to $49,758 (2022 - $26,986) and largely represents the sale of the previous version of the NEXE Pod that was composite based. NEXE has transitioned from producing composite pods to the proprietary, BPI certified single-serve pod. The Company has onboarded three clients and is working through the sales pipeline focusing on private label and co-manufacturing opportunities. For Q1 2024 revenues are expected to come in higher than total revenues in fiscal 2023. The Q1 2024 quarter will reflect only one month of revenue generation.

  • Selling, General & Administrative expenses decreased to $4,453,682 (2022 - $6,201,830) primarily due to lower marketing, consulting, and professional fees.  NEXE also decreased salaries and management fee expenses. This is the third year of such decrease as the Company continues to maintain a disciplined approach to managing expenses. Expenses were also impacted by one-time costs related to establishing the Windsor Facility and going forward, expenses will benefit from operations being consolidated to one location.

  • Depreciation increased to $987,551 (2022 – $672,830) due to additional equipment purchased. Capital expenditures were $3.3 million, down from $8.8 million in fiscal 2022. Going forward, we expect capital expenditures to remain within a similar range as fiscal 2023.

  • The Company recorded a non-cash interest expense of $257,459 (2022 – $309,167) related to the accretion of interest associated with the interest free Government loan from the Western Innovation program.

  • Research and development expenses decreased to $380,089 (2022 - $336,460) as NEXE continues to invest in product development to stay ahead of the curve.
Outlook and Financial Position

We believe the fundamentals for the business remain strong and are supported by macro trends. In North America, the government is enacting different regulations and providing incentives to move away from petroleum-based products. We continue to see consumers moving towards sustainable options to help improve the environment and the growing concern around the health impact of plastics on the human body. The BPI certification that was granted for NEXE's single-serve pod and associated components requires products to be free of per- and poly-fluoroalkyl substances (PFAS) reflecting general concerns about the impact of PFAS.

Management believes that significant investments will be needed to meet the changing industry requirements and increase in potential demand. With the expertise gained by the team in onshore manufacturing over the last few years, management believes NEXE will be competitively positioned to replicate and expand its operational capabilities into the U.S.

The Company has a valuable portfolio of assets, technology and comprehensive IP. The Company has moved into revenue generation mode with its new production facility and management believes it is competitively positioned to leverage the trends in the green economy. The strategic decision to transition to an entirely in-house model, away from third-party suppliers, has allowed the Company to develop a price-competitive single-serve pod that can compete against other compostable products and the plastic alternative.

At the end of fiscal 2023, NEXE had working capital of $23.0 million, no debt, and with the expected proceeds from the Surrey Facility sale, management believes it is well-funded to weather the current market volatility. In addition, NEXE amended its warrants such that the exercise price was revised from $2.50 to $0.65 per share, and the expiry date was extended from April 9, 2023, to April 9, 2024. If all outstanding warrants are exercised, the proceeds from the warrants could amount to $5.6 million.

The Company's Q4 2023 financial statements and related management's discussion and analysis are available on NEXE's SEDAR profile at and the Company's website at

*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

About NEXE Innovations Inc.

NEXE Innovations Inc. is a leader in innovative compostable materials technology based in Ontario, Canada. The first product developed by NEXE Innovations is one of the only patented, fully-compostable, single-serve coffee pods for use in existing major single-serve coffee machines.

For more information about NEXE's compostable materials and how it is well-positioned to meet the growing demand for environmentally friendly and sustainable products, visit and follow us on social media @nexeinnovations.

On behalf of the Company:
Ash Guglani
President & Director

For investor relations contact:
Kam Mangat
VP, Investor Relations & Corporate Strategy
Office +1-604-359-4725
Mobile +1-604-359-4742

For media relations contact:

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this release are forward-looking statements or information, which include, but are not limited to, statements in respect of the Company completing and transferring various certifications, expectations regarding the benefits of end-to-end manufacturing, acquisitions of BPI certifications, growth of the Company's customer base, indications of interest from potential clients, government regulations, consumer trends, Company's use of working capital, sale of property or assets of the company consolidation of operations and the Company's overall business strategy, increases in production and revenue, and the Company's long-term growth and development plans. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including but not limited to, the Company's ability to execute on its business strategy and those risks set out in the Company's management's discussion and analysis for year ended May 31, 2023 under the heading "Risk and Uncertainties". Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the demand for its products, anticipated costs, and the ability to achieve goals. Factors that could cause the actual results to differ materially from those in forward-looking statements include, receipt of necessary approvals and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information.

The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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