NEXE Innovations Issues Letter to Shareholders
NEXE Innovations (NEXNF) has announced significant progress in Q4 2024, successfully commercializing their K-Cup compatible pods after extensive development and testing. The company reports growing recurring revenue and increasing order volumes across retail, office coffee services, and e-commerce channels.
The company has developed a proprietary resin through their R&D efforts, which they believe provides a competitive advantage in sustainable alternatives to plastics. Their materials, including PLA (polylactic acid), are designed to be fully biodegradable and support environmental recovery.
NEXE has established an in-house tool shop to accelerate prototype development and is currently in discussions with industry leaders to explore broader applications of their proprietary resin beyond coffee pods. The company is developing prototypes for waste-to-energy processors and aims to expand into new markets leveraging their sustainable materials technology.
NEXE Innovations (NEXNF) ha annunciato progressi significativi nel quarto trimestre del 2024, riuscendo a commercializzare con successo le loro capsule compatibili con K-Cup dopo un'ampia fase di sviluppo e testing. L'azienda riporta una crescente entrata ricorrente e un aumento dei volumi degli ordini attraverso i canali retail, i servizi di caffè per uffici e l'e-commerce.
L'azienda ha sviluppato una resina proprietaria attraverso i suoi sforzi di ricerca e sviluppo, credendo che ciò offra un vantaggio competitivo nelle alternative sostenibili alla plastica. I loro materiali, inclusi il PLA (acido polilattico), sono progettati per essere completamente biodegradabili e supportano il recupero ambientale.
NEXE ha istituito un'officina interna per accelerare lo sviluppo di prototipi ed è attualmente in discussioni con leader del settore per esplorare applicazioni più ampie della loro resina proprietaria al di là delle capsule di caffè. L'azienda sta sviluppando prototipi per processori di energia da rifiuti e mira ad espandersi in nuovi mercati sfruttando la propria tecnologia dei materiali sostenibili.
NEXE Innovations (NEXNF) ha anunciado avances significativos en el cuarto trimestre de 2024, comercializando con éxito sus cápsulas compatibles con K-Cup después de un extenso desarrollo y pruebas. La compañía informa sobre el crecimiento de los ingresos recurrentes y el aumento de los volúmenes de pedidos a través de los canales minoristas, de servicios de café para oficinas y de comercio electrónico.
La empresa ha desarrollado una resina patentada a través de sus esfuerzos de I+D, que creen que proporciona una ventaja competitiva en alternativas sostenibles a los plásticos. Sus materiales, incluido el PLA (ácido poliláctico), están diseñados para ser completamente biodegradables y apoyar la recuperación medioambiental.
NEXE ha establecido un taller interno para acelerar el desarrollo de prototipos y actualmente está en conversaciones con líderes de la industria para explorar aplicaciones más amplias de su resina patentada más allá de las cápsulas de café. La empresa está desarrollando prototipos para procesadores de energía a partir de desechos y pretende expandirse a nuevos mercados aprovechando su tecnología de materiales sostenibles.
NEXE Innovations (NEXNF)는 2024년 4분기에 중요한 진전을 이루었다고 발표하며, 광범위한 개발 및 테스트를 거쳐 K-Cup 호환 포드를 성공적으로 상용화했습니다. 회사는 소매, 사무실 커피 서비스 및 전자상거래 채널 전반에서 반복 수익이 증가하고 주문량이 증가하고 있다고 보고했습니다.
회사는 연구 개발 노력 덕분에 독점 수지를 개발했으며, 이를 통해 플라스틱의 지속 가능한 대안에서 경쟁력을 제공한다고 믿고 있습니다. 이들의 자재는 PLA(폴리젖산)를 포함하여 완전히 생분해 가능하도록 설계되었으며 환경 회복을 지원합니다.
NEXE는 프로토타입 개발을 가속화하기 위해 내부 공구 상점을 설립했으며, 현재 커피 포드를 넘어 독점 수지의 보다 폭넓은 응용 가능성을 탐색하기 위해 업계 리더와 논의하고 있습니다. 이 회사는 폐기물-에너지 프로세서를 위한 프로토타입을 개발하고 있으며, 지속 가능한 소재 기술을 활용하여 새로운 시장으로 확장할 계획입니다.
NEXE Innovations (NEXNF) a annoncé des progrès significatifs au quatrième trimestre 2024, réussissant à commercialiser ses capsules compatibles avec K-Cup après un développement et des tests approfondis. L'entreprise fait état d'une augmentation de ses revenus récurrents et d'une hausse des volumes de commandes sur les canaux de détail, les services de café en bureau et l'e-commerce.
La société a développé une résine propriétaire grâce à ses efforts de R&D, qu'elle considère comme un avantage concurrentiel pour les alternatives durables aux plastiques. Leurs matériaux, y compris le PLA (acide polylactique), sont conçus pour être entièrement biodégradables et soutiennent la récupération environnementale.
NEXE a établi un atelier interne pour accélérer le développement de prototypes et est actuellement en discussions avec des leaders du secteur pour explorer des applications plus larges de sa résine propriétaire au-delà des capsules de café. L'entreprise développe des prototypes pour des processeurs de déchets en énergie et vise à se développer dans de nouveaux marchés en tirant parti de sa technologie de matériaux durables.
NEXE Innovations (NEXNF) hat bedeutende Fortschritte im vierten Quartal 2024 angekündigt und erfolgreich ihre K-Cup-kompatiblen Kapseln nach umfangreicher Entwicklung und Testung kommerzialisiert. Das Unternehmen berichtet von wachsendem wiederkehrenden Umsatz und steigenden Bestellmengen in den Bereichen Einzelhandel, Bürokaffeeverwaltung und E-Commerce.
Das Unternehmen hat ein proprietäres Harz im Rahmen seiner F&E-Bemühungen entwickelt, von dem man glaubt, dass es einen Wettbewerbsvorteil bei nachhaltigen Alternativen zu Kunststoffen bietet. Ihre Materialien, einschließlich PLA (Polymilchsäure), sind so konzipiert, dass sie vollständig biologisch abbaubar sind und die Umweltregeneration unterstützen.
NEXE hat eine interne Werkzeugwerkstatt eingerichtet, um die Entwicklung von Prototypen zu beschleunigen, und führt derzeit Gespräche mit Branchengrößen, um breitere Anwendungen ihres proprietären Harzes über Kaffeekapseln hinaus zu erkunden. Das Unternehmen entwickelt Prototypen für Abfall-zu-Energie-Prozessoren und plant, sich mit der eigenen nachhaltigen Materialtechnologie in neue Märkte zu expandieren.
- Successfully commercialized K-Cup compatible pods in Q4 2024
- Generating recurring revenue with increasing order volumes
- Established in-house tool shop reducing prototype development time
- Developed proprietary biodegradable resin technology
- Expanding market reach through multiple distribution channels
- Faced technical challenges in K-Cup pod development affecting production timeline
- Still in development phase for Nespresso OriginalLine pods
Dear Shareholders,
As we step into 2025, we at NEXE Innovations are energized by the milestones we achieved in 2024 and what we believe are the transformative opportunities ahead. This year marks a pivotal moment in our journey as we continue to innovate, grow, and redefine what is possible within sustainable solutions.
In calendar Q4 2024, after an intensive product development cycle and multiple rounds of beta testing, our K-Cup compatible NEXE pod successfully entered commercialization. I believe this achievement demonstrates the dedication of our team and the strength of our vision. I am proud to report that our partnerships to date are driving recurring revenue, with increasing order volumes reflecting what I believe is strong market demand for our products. Our diverse customer base spans multiple channels, including retail, office coffee services (OCS), and e-commerce, which in our view will enable 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, with sampling efforts underway for two customers, and we anticipate rolling out these pods later this year.
The development of our coffee pod was not without challenges. K-Cup compatible coffee pods face unique obstacles during the brewing process, including exposure to heat, high pressure, and water flow. Achieving a consistent and satisfying coffee extraction in a K-Cup compatible machine requires precise engineering to balance these variables. These challenges can impact coffee quality, brewing efficiency, and even machine performance. Addressing these complexities demanded significant R&D efforts to create a capsule capable of meeting these rigorous demands while ensuring a premium coffee experience. However, addressing these challenges led to an incredible breakthrough for us in our proprietary resin. I believe this material now forms the foundation of our competitive edge and has positioned NEXE as an innovator, not only in the coffee industry but across sectors where sustainable alternatives to plastics are increasingly sought.
Since our inception in 2015, our goal has been clear: to eliminate single-use plastics in the coffee industry. Over time, this vision has expanded significantly. Plastics dominate vast markets, presenting challenges that are costly and complex to address. Through extensive R&D, we've developed solutions which I believe has the potential to impact industries beyond the coffee sector. By leveraging our proprietary resin, supported by our growing intellectual property portfolio, management is of the opinion that NEXE will be in a position to address challenges across multiple sectors.
Unlike traditional plastics, our materials, including PLA (polylactic acid), do not persist in the environment. Instead, they are designed to break down into smaller, soluble molecules, eventually biodegrading entirely. This non-persistence supports environmental recovery over time. Moreover, because PLA is derived from plant-based sources that absorb CO2 and water, its composting and degradation processes complete a circular lifecycle, making it an ideal solution for a sustainable future.
In my view, one of the most exciting developments at NEXE is the establishment of our in-house tool shop. This capability has significantly reduced the time required to develop prototypes, allowing us to accelerate innovation and meet customer demands more efficiently than ever before. By bringing all aspects of production in-house, we have enhanced our ability to innovate and maintain cost competitiveness with traditional plastics—a critical factor for scaling our solutions.
Additionally, we are currently in conversations with industry leaders who focus on sectors we believe may offer greater market potential and broader growth opportunities where our proprietary resin can serve as a renewable source for waste-to-energy processors. To support these efforts, we are currently building prototypes that showcase our capabilities to key decision-makers in specific industries, demonstrating what we believe to be the versatility and potential of our resin. These opportunities align with our commitment to sustainability and represent a significant step forward in reducing the dependence on plastic.
I believe these advancements have the potential to open new revenue stream opportunities and unlock entry points into industries we had not previously considered. Additionally, we have made the necessary capital investments to scale our proprietary resin across various form factors, extending its applications beyond coffee pods into what I believe to be new and promising markets. With a clear vision and strong partnerships, we expect to expand our impact and deliver long-term value to our shareholders.
Sincerely,
"Ash Guglani"
Ash Guglani
President, NEXE Innovations
*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
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, statements in respect of potential new revenue streams, the anticipated rollout of new products, performance and market potential of our proprietary resin, its anticipated impact on sustainability, and its broader application across industries, and our ability to deliver long-term shareholder value. 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 and those risks set out in the Company's management's discussion and analysis for year ended May 31, 2024 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.
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SOURCE Nexe Innovations Inc.
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