NEXE Innovations Announces Quarterly Q3 2024 Financial Results for the Three-Month Period Ended February 29, 2024
In Q3 2024, NEXE continued to work with potential business-to-business (B2B) customers. NEXE is engaged in several discussions with coffee companies of various sizes. These companies have tested various samples, conducted their due diligence, and engaged in discussions with their end customers, including grocery chains and online distributors, to help forecast demand and contractual details.
During the quarter, NEXE's founders also attended B2B conferences, including a large private-label conference in
"We believe our position within the market is not just strong; it's strategic and forward-thinking. With a tested, BPI-certified compostable product and a fully integrated production facility where we craft our own resin, we are setting a new standard in sustainable production," stated
Highlights:
We believe we are leaders in the compostable coffee pod space. Both Keurig and Nespresso are investing in developing sustainable alternatives for their coffee pods.1 Keurig still needs to beta test its product and will require consumers to purchase a new machine.2 Nespresso has a more paper-based product, which they have piloted in
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1
"Nespresso, Keurig have new coffee pods coming designed to put an end to all the garbage", accessed |
2
"Nespresso, Keurig have new coffee pods coming designed to put an end to all the garbage", accessed |
In our view, NEXE is well ahead of the competition with its fully operational, vertically integrated facility in
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NEXE has a strong cash position to execute its strategy over the next two years. At the end of Q3 2024, our total cash position is
$10 million (including GICs and term deposit). NEXE is also expected to receive cash proceeds of at least$5.0 million , in the event a purchaser agrees to acquire our non-core asset, theSurrey facility. -
NEXE has minimal debt. The current debt outstanding is
$752,187 , related to a government loan. NEXE's commitments at the end of the quarter were$1.7 million , and minimal capex is expected over the next two years. -
The book value per share at the end of Q3 2024 was
$0.36 (based on outstanding shares of 97.3 million), including$0.10 per share of cash.
Fiscal Q3 2024 Results:
During the three months ended
- Revenue was
$24,927 (February 28, 2023 –$7,129 ) and cost of goods was$38,556 (February 28, 2023 –$16,735 ). The cost of goods included non-cash expenses, such as depreciation related to production machinery and equipment. Depreciation in cost of goods sold increased as new equipment has come online. - Selling, General and Administrative expenses decreased to
$696,566 (February 28, 2023 -$974,147 ) due to lower overhead costs, lower consulting fees, and lower compensation. The Company benefitted from consolidating operations to theWindsor facility. The management team continues to maintain a disciplined approach to allocating resources. - A non-cash share-based compensation expense of
$97,021 (February 28, 2023 -$152,319 ) was recorded for stock options granted to directors, officers, and employees. - Interest and accretion expense decreased to
$43,169 (February 28, 2023 -$62,630 ) as a result of declining balances of the government loan and elimination of the lease liability. - Interest income increased to
$253,094 (February 28, 2023 -$195,181 ) primarily from the GIC deposits. - Depreciation increased to
$435,358 (February 28, 2023 –$214,135 ) due to additional equipment purchased. - Research and development expenses increased to
$101,004 (February 28, 2023 ‐$29,497 ) as the company continues to develop new technology and formulations.
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3
"Nespresso, Keurig have new coffee pods coming designed to put an end to all the garbage", accessed |
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4
Keurig's new K-Rounds coffee pods are plastic-free and could finally make single serve coffee making sustainable', accessed |
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NEXE has a working capital of
The Company's Q3 2024 financial statements and related management's discussion and analysis are available on NEXE's SEDAR+ profile at www.sedarplus.ca and the Company's website at www.nexeinnovations.com.
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About
On behalf of the Company:
President & Director
For investor relations contact:
VP, Investor Relations & Corporate Strategy
invest@nexeinnovations.com
Office +1-604-359-4725
Mobile +1-604-359-4742
For media relations contact: media@nexeinnovations.com
Neither the
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 indications of interest from potential clients, government regulations, potential receipt of government refunds, funds to be received from a potential sale of non-core assets, completion of a potential sale of non-core assets, NEXE's potential cash position, 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, ability to find a buyer of non-core assets on terms that are favourable or acceptable, increases in interest rates which may have negative impacts on the real estate market or property values, potential legal, regulatory or tax changes that may impact the value of the
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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