NEXE Innovations Inc (TSX-V:NEXE, OTC:NEXNF) said the 2022 financial year was an important one for the company as it built a solid operational footprint as part of its ongoing strategy.
Highlights from the fiscal year ended May 31, 2022, include the NEXE coffee brand being available to purchase online at nexecoffee.com, ecscoffee.com, and on Amazon Prime; the purchase of a 54,000 square-foot facility in Windsor, Ontario, as an industrial hub expected to be operational by year-end; and the company’s investments benefitting off the weaker euro.
After commercializing its compostable pod technology, the company said it has focused on vertically integrating its operations. Following this, NEXE said it is focused on growing its customer base and targeting the private-label and co-manufacturing segments of the coffee and superfoods market.
READ: NEXE Innovations adds two new faces to executive team
NEXE finished the 2022 financial year with working capital of C$31.7 million, with C$28.5 million in cash and guaranteed investment contracts (GICs) which the company said would help it weather the increased market volatility and focus on executing its strategy over the next 12 to 18 months.
"Despite the challenges of building a new operation during COVID and the pivot to moving to a vertically integrated and injection molding manufacturing process to lower supply chain risks and have greater control over quality, initially impacted our progress, we have subsequently made significant strides over the last few months", said NEXE president Ash Guglani in a statement.
“We are receiving numerous inbound inquiries from businesses that are interested in our compostable materials and our sales pipeline is active,” Guglani added.
For the 2022 fiscal year, the company reported revenue of $26,986, compared to nil revenue for the 2021 financial year.
NEXE also narrowed its comprehensive loss from C$17.2 million or C$0.37 per share in the 2021 fiscal year to C$8.3 million or C$0.09 per share in the 2022 fiscal year.
First US purchase order with Awaken Brands Ventures Ltd
Further, the company announced that it has partnered with Awaken Brand Ventures Ltd to sell its fully compostable single-serve pods, having received its first purchase order from Awaken.
NEXE said this partnership was the first entry point for the company to sell its pods for the Keurig Brewing Systems into Awaken’s North America ecosystem.
“This partnership allows NEXE an entry into the US market through Awaken's strong distribution network across North America, starting with some of Awaken's notable Silicon Valley customers," CEO Guglani said.
Awaken Brands co-founder Alina Gogoescu added: "We are thrilled to have partnered with NEXE to work together to not only provide our clients with plant-based products, but we can now provide our products in NEXE fully compostable pods.”
“We believe NEXE has developed one of the only fully-compostable plant-based pods that are able to sustain heat, water, and pressure without compromising the taste while providing one of the highest volumes per pod of our formulations in the industry,” Gogoescu continued.
Based in British Columbia, Canada, NEXE Innovations is a leader in innovative compostable materials technology.
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