NEXE Innovations Announces Financial Results for the Three-Month Period Ended February 28, 2023.

VANCOUVER, BC: NEXE Innovations Inc. ("NEXE" or the "Company") (TSXV: 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, 2023 ("Q3 2023").

During the quarter, the Company was focused on setting up its operations at its 54,000 square foot facility in Windsor, Ontario (the "Windsor Facility"). Subsequent to the end of Q3 2023, the Company announced the Windsor Facility had been fully commissioned to produce food-grade components for its proprietary single-serve beverage pods and the final handoff from the vendors and contractors of its end-to-end systems is now complete. The Company is currently in the process of completing and transferring various certifications from its Surrey, British Columbia facility to the Windsor Facility, including Organic, Kosher, and Fair Trade.

The end-to-end manufacturing facility is a key part of NEXE's operating strategy, which is expected to lead to higher margins, protect our intellectual property, reduce supply chain risks, and provide the ability to scale and expand into additional markets faster. The Windsor Facility is equipped for compounding resin, injection molding key components of NEXE's proprietary single-use fully compostable pod, and dosing and sealing the pods for commercialization. NEXE also expects to provide roasting and grinding capabilities in order to provide a fully integrated coffee solution to potential clients.

Key Highlights

Given the significant advancements made with the vertically integrated manufacturing process, NEXE decided not to continue running a parallel production of its current composite pod and started the transition to the new injection molded pod in Windsor ahead of its original second half of 2023 schedule. As a result of this transition, NEXE started to reduce its current composite pods inventories to prepare for the switchover. This resulted in lower revenues in Q3 2023 compared to the previous two quarters.

NEXE is in the process of acquiring the BPI certification. The BPI certification is a third-party verification of ASTM D6400 and D6868 standards for compostable products. Being awarded the BPI certification means the product has gone through a rigorous testing process that confirms the Company has met the ASTM compostable standards. As part of the process, NEXE submitted the new version of the injection molded pods to an independent...