Core Insights - NEXE Innovations Inc. reported financial results for the twelve-month and three-month period ended May 31, 2025, highlighting growth in revenue and product development in the compostable coffee pod market [1][6]. Financial Performance - Revenue increased to $307,543 in 2025, up from $149,264 in 2024, driven by sales to multiple commercial partners [6]. - Cost of goods sold rose to $780,028 in 2025 from $333,553 in 2024, influenced by new equipment coming online and non-cash expenses like depreciation [7][8]. - Selling, general, and administrative expenses increased to $3,989,112 in 2025 from $3,646,171 in 2024, primarily due to higher legal and professional costs [8]. - The company reported a net gain of $3,700,554 from the sale of its Surrey facility during the year ended May 31, 2024 [9]. Product Development and Market Position - NEXE has commercialized a BPI-certified compostable coffee pod and has developed over 50 SKUs, with an additional 10 expected soon [2][5]. - The company has entered into five collaborations with partners in the U.S. and Canada, receiving positive feedback on its compostable pod offerings [2][5]. - The NEXE pod is designed to provide a premium brewing experience and is positioned as an environmentally friendly alternative to conventional plastic pods [3]. Operational Strategy - NEXE is focused on increasing production volumes and scaling operations while maintaining a disciplined approach to capital management [4]. - As of the end of Q4 2025, the company had a cash position of $9.3 million and short-term investments totaling $3.0 million, with minimal debt of $396,741 related to an interest-free government loan [4][7]. Market Outlook - The company anticipates continued interest and consumer adoption of its fully compostable coffee pod as market awareness grows [5].