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2025 Results:

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Revenue: Revenue increased to $307,543 (2024 – $149,264) reflecting sales to multiple commercial partners. The five current partners that NEXE is working with include a major U.S. online seller of coffee pods, a large North American OCS distributor, and a newly launched company based in British Columbia. Over the year we have developed over 50 different SKUs for our partners and continue to expand our product offerings. The current partners we are working with represent over 15 coffee brands.

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Cost of goods sold: The cost of goods sold was $780,028 (2024 – $333,553). The cost of goods sold included non-cash expenses, such as depreciation related to production machinery and equipment. Depreciation in cost of goods sold increased as new equipment has come online.

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Selling, general and administrative: Selling, General and Administrative expenses increased to $3,989,112 (2024 – $3,646,171) largely due to higher legal and professional costs. The management team continues to monitor expenditures and allocates resources in line with strategic priorities.

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Net gain on disposal of assets: The Company realized a gain of $3,700,554 from the sale of Surrey facility during the year ended May 31, 2024. In the prior year, the Company recorded a gain of $18,563 from the sale of non-material capital assets.

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The Company’s Q4 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.

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

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

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About NEXE Innovations Inc.

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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

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On behalf of the Company:

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Ash Guglani
President & Director

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For investor relations contact:

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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.

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Cautionary Note Regarding Forward-Looking Statements

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Certain statements in this release are forward-looking statements or information, which include, but are not limited to, statements regarding the Company’s product development and expansion plans, anticipated customer demand, expected timing of new SKU launches, strategic partnerships, use of working capital, financial position, and the Company’s ability to scale operations and grow its market presence in Canada and the U.S.. 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, maintain and grow partnerships, onboard new customers, and respond to market conditions, and those risks set out in the Company’s management’s discussion and analysis for year ended May 31, 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.

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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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