NEXE Innovations Inc (TSX-V:NEXE, OTC:NEXNF) has exited the fiscal second quarter of 2024 with $11.4 million in cash on hand, with an expected cash position of $18 million if certain conditions are met, and minimal debt making it well positioned to execute its strategy over the next two years.
The company said during the quarter that ended November 30, 2023, it continued to build relationships with B2B clients for its compostable coffee pods, including well-established coffee companies and distributors.
It said it is in place to leverage macro trends such as the changing regulatory environment around plastic bans and related health risks.
For 2Q, revenue was $33,729, up from $9,301 for the year-ago quarter.
Its selling, general and administrative expenses decreased from $951,161 to $929,130 as the company consolidated operations at its Windsor facility.
Meanwhile, research and development expenses rose from $56,918 in the year-ago quarter to $76,749 as NEXE invested in new technology and formulations.
Its net loss for the period was $1,610,871 or $0.016 per share compared to a net loss of $349,887 or $0.004 per share for the same period in fiscal 2023.
"It's important to remember that establishing these relationships takes time. Our clients carefully evaluate our operations and plan how to introduce our products, often starting with smaller orders and gradually increasing," NEXE president and co-founder Ash Guglani said in a statement.
"Our revenues might not follow a straight line but ebb and flow as these relationships solidify and grow. This is a normal part of the journey for a start-up like ours, and these fluctuations are steps towards building a robust, sustainable business."
NEXE Innovations is focused on providing innovative compostable material solutions and packaging to the B2B segment to help businesses achieve their sustainability goals.