NEXE Innovations Announces Financial Results for the Three Months Ended February 28, 2025

WINDSOR, Ontario, April 29, 2025 (GLOBE NEWSWIRE) -- NEXE Innovations Inc. ("NEXE", the "Company", "we", "us" or "our") (TSX.V: NEXE) (Frankfurt: NX5) (OTC: NEXNF), a compostable and innovative materials company, is pleased to announce its financial results for the three-month period ended February 28, 2025 ("Q3 2025").

We at NEXE Innovations are pleased with the milestones achieved in 2024 and what we believe are the transformative opportunities ahead. As of April 22, 2025, NEXE has delivered over one million pods to our partners, demonstrating continued interest in our products across Canada and the U.S. We are currently focusing our sales efforts on the Canadian market while also advancing our U.S. expansion strategy to better serve customers in that market. The U.S. is the largest market for Keurig*-compatible pods, with a market size of ~20 billion pods annually^1,2.

NEXE is working towards a strategy it believes will help mitigate tariff and geopolitical risks. Despite the increased uncertainty around the market environment, the feedback received from customers for the NEXE BPI-certified compostable pods has to date been positive. NEXE aims to provide a high-quality coffee pod that in our view delivers better tasting coffee at a price that is competitive with plastic alternatives. What we believe makes the NEXE pod stand out is its patent-protected extraction and pod structure, which is designed to extract coffee in a manner similar to a French press, due to a faceplate within the pod that compresses the coffee during brewing. The pod contains no microplastics and is intended to be more environmentally friendly than the non-compostable pods currently on the market. The partners we currently work with are driving repeat orders and management believes that, as product awareness increases, demand for our product will grow. Our diverse customer base spans multiple channels, including retail, office coffee services (OCS), and e-commerce, which we believe enables us to reach distinct audiences and broaden our market penetration. Simultaneously, we are onboarding additional customers for our K-Cup-compatible products, ensuring a pipeline for continued growth. We also remain focused on advancing our next-generation compostable Nespresso** OriginalLine pods and developing products which we believe will disrupt other industries where sustainable alternatives are an ideal solution.

NEXE continues to exercise disciplined capital management given the increased market volatility. NEXE currently maintains a strong cash position that we believe is sufficient to support our business strategy for the next two years. At the end of Q3 2025, our total cash position is $10.3 million and investments in term deposits and GICs total $3.03 million. NEXE's debt position is minimal, with its debt outstanding at $378,252 related to an interest free government loan. NEXE's commitments at February 28, 2025, were $1.3 million.

"Surpassing our first million BPI-certified compostable pods is an important milestone that we believe reflects consumers and partners interest in alternatives to plastic," stated Ash Guglani, President and Co-founder of NEXE, "With a patent-protected technology which is designed to brew coffee in a manner similar to a French press, and the momentum we believe we are building through our partnerships, we believe NEXE is well positioned to expand its presence in the coffee market."

Q3 2025 Results:

Q3 2025 was a milestone quarter for NEXE as we surpassed one million pods sold and our revenues more than double compared to Q2 2025. We announced four partnerships, including one that has signed a multi-year master manufacturing agreement. Currently we are focusing on building our sales in Canada as we develop our U.S. strategy and explore the possibility of establishing an operational footprint in that market. We continue to work with two customers on testing and sampling the Nespresso OriginalLine pods and management anticipates a potential rollout of these pods later this calendar year.

With our coffee segment now in revenue mode, we are also increasing our efforts to build out additional segments. We believe the proprietary resin we developed in connection with the creation of our coffee pods has the potential to help develop additional products to disrupt different industries. NEXE is already in conversations with key decision makers in other industries and has been developing and testing prototypes.

Financial

• NEXE has a strong cash position to help execute its plans. As of February 28, 2025, the Company had working capital of $12,901,201 (May 31, 2024 - $12,836,802) with cash and cash equivalents that totaled $10,248,578 (May 31, 2024 - $8,048,712) and investments in term deposits and a GIC totaling $3,030,000 and $3,040,000 respectively. Debt is minimal at $378,252 related to an interest free government loan.
• Going forward, the Company is also expected to have lower capital expenditures. During the three months ending February 28, 2025, NEXE's capital investments amounted to $179,777. At the end of February 28, 2025, total commitments stand at $1.3 million.

Sales and Product

• Revenue in Q3 2025 was $173,721 (Q3 2024 – $24,927). NEXE has entered four different partnerships starting with ecoBeans in mid-November, Bridgehead Coffee, EKOCUPS, and a North American distributor specializing in retail, office coffee services (OCS), and hospitality sectors. With the increased volatility around tariffs and geopolitical risks, it is expected that quarter-over-quarter revenues will fluctuate. However, in our view, we have a strong pipeline in Canada and will focus our sales efforts on Canada as we work on our U.S. strategy.
• NEXE is working with two customers on testing the Nespresso** OriginalLine compostable pods. We expect to launch these pods later in the calendar year 2025.
• NEXE continues to invest in R&D and is working on additional sustainable products targeting various industries. We believe there are various industries where our proprietary resin may be an ideal fit and where the total addressable market is bigger than that of the coffee pod market.
  

Operational

• NEXE has the operational footprint and key equipment to hit the targeted capacity required for compostable coffee pods forecasted for the next year. The current finished goods capacity aligns with expected production for the next several months and will be continuously adjusted. Scaling finished goods' capacity is flexible and requires minimal investments, such as larger molds or additional staff.
• NEXE has built a lean production team in Windsor and is expected to continue to hire as production ramps up and run multiple daily shifts. In response to the current tariff situation, NEXE has taken steps to adjust its operations and remains focused on prudent cash management.

The Company's Q3 2025 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.

*NEXE Innovations Inc. is not affiliated with, endorsed, or sponsored by Keurig®. Keurig® is a registered trademark of Keurig Dr Pepper Inc.

**NEXE Innovations Inc. is not affiliated with, endorsed, or sponsored by Nespresso®. Nespresso® is a registered trademark of Société des Produits Nestlé S.A

About NEXE Innovations Inc.

NEXE Innovations is focused on providing innovative compostable material solutions and packaging to the B2B segment to help businesses achieve their sustainability goals. NEXE Innovations has developed a proprietary and patented compostable material that can withstand heat, pressure, and water. Our flagship product, the NEXE Pod, a BPI-certified compostable coffee pod, showcases our material's durability and is an ideal substitute for plastic. The NEXE pod is compatible with major coffee brewing machines and is manufactured at NEXE's vertically integrated facility based in North America. Discover our innovative approach to sustainability at www.nexeinnovations.com and join our journey on social media @nexeinnovations. #compostablecoffeepods #sustainability #greentech

On behalf of the Company:

Ash Guglani
President & Director

For investor relations contact:

Kam Mangat
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 TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this release are forward-looking statements or information, which include, but are not limited to, potential new revenue streams; the anticipated roll out of new products including the anticipated development of next-generation products; expected timing for customer production and receipt of revenue, the Company's potential cash position; consumer trends, industry innovation, the Company's use of working capital, consolidation of operations and the Company's overall business strategy, increases in production and revenue, the Company's long-term growth and development plans including expansion of the Company's sales efforts in Canada and the U.S., the onboarding of additional customers, management's expectations regarding its cash position to support its business strategy over the next two years, the Company's ability to maintain and grow its partnerships, the onboarding of additional customers, and the Company's ability to manage risks related to tariffs and geopolitical factors. 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 including the execution of master manufacturing agreements on terms acceptable to the Company, and those risks set out in the Company's management's discussion and analysis for year ended May 31, 2024 and the quarter ended February 28, 2025 under the headings "Risk and Uncertainties". Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the demand for its products, anticipated costs, and the ability to achieve goals. Factors that could cause the actual results to differ materially from those in forward-looking statements include receipt of necessary approvals and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information.

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.

¹Keurig Dr Pepper, SEC Fillings, 10K 2023
² Coffee Pods and Capsules Market in USA Size & Share Analysis, Mordor Intelligence, <https://www.mordorintelligence.com/industry-reports/united-states-coffee-pods-and-capsules-market#:~:text=USA%20Coffee%20Pods%20and%20Capsules%20Market%20Trends&text=As%20of%20April%202022%2C%20more,fresh%2Dground%20specialty%20coffee%20pods.>

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