NEXE Innovations Inc (TSX-V:NEXE, OTC:NEXNF) said it has had an eventful first quarter during which it commenced production at its new facility in Windsor, Ontario, and made the first delivery of its BPI-certified compostable single-serve pod.
Since the first delivery at the beginning of August, it said it has onboarded three co-manufacturing customers and continues to work through its sales pipeline. Discussions with various coffee companies are continuing, NEXE said, adding that private label and co-manufacturing customers are a key segment for the company.
"We are pleased with the progress we continue to make. In July, NEXE successfully initiated production of its BPI-certified, injection molded single-serve beverage pod," NEXE president Ash Guglani commented in a statement.
"By streamlining our operations to the Windsor Facility and maintaining a strong balance sheet, we believe we are positioning NEXE to build a competitive beverage and coffee business. NEXE expects to continue investing in product development."
The company posted revenue of $87,702 for the quarter ended August 31, 2023, up from $26,862 a year earlier. The cost of goods increased to $188,087 from $157,103 as depreciation in the cost of goods sold rose as new equipment came online.
The company said the consolidation of all its operations to the Windsor facility from Surrey will positively impact costs, with the Surrey facility now listed for sale with a broker. The proceeds from the potential sale will provide an additional cash buffer, it added.
It ended August with working capital of $19.2 million and cash and cash equivalents of $12.7 million.
The full statement can be found here.
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