NEXE Innovations Inc (TSX-V:NEXE, OTC:NEXNF) said it is ramping up efforts to expand into the US market after selling over 1 million of its certified compostable coffee pods.
The Vancouver-based company is currently focusing sales efforts in Canada while advancing a strategy to tap into the US coffee pod market, estimated at 20 billion units annually.
NEXE is also exploring a potential operational footprint in the US as part of efforts to reduce tariff and geopolitical risks.
“With a patent-protected technology designed to brew coffee like a French press and the momentum we believe we are building through our partnerships, NEXE is well-positioned to expand its presence in the coffee market,” said president Ash Guglani in a statement.
The company reported third-quarter revenue of C$173,721, up sharply from C$24,927 a year earlier.
During the quarter, NEXE signed four new partnerships, including a multi-year manufacturing agreement. It is currently working with two customers on testing its next-generation Nespresso OriginalLine compostable pods, with a potential launch expected later this year.
NEXE’s patent-protected pods are designed to eliminate microplastics while delivering what it believes is a better-tasting brew through its unique compression technology. The company said it has seen repeat orders from partners and growing traction across retail, office coffee services, and e-commerce channels.
The company’s broader ambition extends beyond coffee. NEXE is in early discussions with decision-makers in other industries and has begun developing prototypes for products using its proprietary compostable resin, which it believes could unlock new commercial opportunities.
With a cash position of over C$10 million and minimal debt, NEXE said it is well capitalized to support its business strategy for the next two years. The company expects to maintain a lean cost structure, with minimal capital expenditures and the flexibility to scale production as needed.
Shares of NEXE traded up 4.4% on the update.