Nextech3D.ai Reports 2023 Third Quarter Earnings

Nextech3D.ai Reports 2023 Third Quarter Earnings

YTD Revenue up 97% Compared to Same Period Last Year

TORONTO, ON / ACCESSWIRE / November 29 , 2023 /Nextech3D.AI (OTCQX:NEXCF)(CSE:NTAR)(FSE:EP2), a Generative AI-Powered 3D model supplier for Amazon, P&G, Kohls and other major e-commerce retailers is pleased to report its financial and operating results for its third quarter ended September 30, 2023.

Please join Evan Gappelberg, Chief Executive Officer and Andrew Chan, Chief Financial Officer after the close today November 29, 2023 at 5:00 P.M. ET where Nextech3D.ai will host a conference call to discuss these financial results.

Evan Gappelberg - CEO Commentary
"We continue to build towards our future with solid year over year growth of +97% across our business. While I'm personally disappointed that we didn't see Amazon open seller central in Q3 and consequently our revenue spike, I'm also confident that it is in motion and likely to happen in Q1, 2024." He continued, "In the fast-evolving world of technology, adaptability is key to sustained success. Our investment in our AI library of 3D meshes or parts is setting us up for success in 2024. We are on the cusp of a significant breakthrough that promises to have a materially positive impact on our business in 2024 and beyond. As AI and 3D models continue to shape the future for e-commerce, we have positioned ourselves at the forefront of this transformative wave. We are ready to see results and capitalize on our AI capabilities in a pivotal way starting in Q1 2024."

Highlights - 9 Months Ending Ending September 30, 2023:

  • Year to date revenue +97% compared to same period last year;
  • Q3 revenue +30% compared to same period last year;
  • Gross profit year to date +18% compared to same period last year
  • Delivery of 60,000+ 3D models to date

Condensed Consolidated Interim Statements of Financial Position


30-Sep-2331-Dec-22
ASSETS


Current


Cash & cash equivalents
2,988,7003,777,117
Receivables
102,749744,331
Deferred asset
91,168256,818
Contract asset
218,100332,197
Prepaid expenses
407,591310,906
Inventory
-45,289
Non current assets held for sale
-501,188
Total current assets
3,808,3085,967,846

Equipment
291,637278,463
Deferred consideration
206,850-
Right of use asset
-829,278
Finance lease receivable on sublease
898,578-
Intangible assets
1,688,1113,313,741
Goodwill
6,560,0406,746,378
Total assets
13,453,52417,135,706

LIABILITIES
Current
Accounts payable and accrued liabilities
3,484,6252,641,918
Factoring liability
505,847-
Deferred revenue
299,222437,746
Lease liability
148,037222,250
Liabilities associated with assets held for sale
-92,532
Total current liabilities
4,437,7313,394,446

Lease liability - non current
516,511582,586
Deferred tax liabilities
12,00029,974
Total liabilities
4,966,2424,007,006

Shareholders' Equity
Share capital
90,530,16983,271,707
Reserves
16,234,63012,754,706
Accumulated Other Comprehensive Income
883,405827,101
Shareholder's equity attributable to Nextech shareholders
(102,334,982)(85,898,862)
Total common shareholders' equity
5,313,22210,954,652
Non controlling interest
3,174,0602,174,048
Total equity
8,487,28213,128,700
Total liabilities and shareholders' equity
13,453,52417,135,706


Condensed Consolidated Interim Statements of Comprehensive Loss



QTD
YTD

30-Sep-2330-Sep-2230-Sep-2330-Sep-22

$$$$
Revenue
1,178,377908,2273,882,8041,970,383
Cost of sales
(1,035,692)(348,447)(2,678,033)(950,233)
Gross profit
142,685559,7801,204,7711,020,150

Operating expenses:
Sales and marketing
867,5861,177,5393,876,8794,079,251
General and administrative
1,992,0962,112,6817,376,5799,075,983
Research and development
1,063,6671,157,4082,820,8333,064,874
Stock based compensation
1,305,299311,3013,560,4411,768,392
Amortization
565,064597,3541,595,8172,076,161
Right of use amortization
-166,02355,728204,476
Depreciation
19,58047,94364,457111,182
Operating profit (loss)
(5,670,607)(5,010,469)(18,145,963)(19,360,169)

Other income (expense):
Gain on sublease recognition
--120,626-
Loss on asset disposal
--(85,679)-
Loss (gain) on short-term investments
-90,744-90,744
Foreign exchange gain (loss)
519,944529,564(43,542)931,587
Profit (Loss) before income taxes
(5,150,663)(4,390,161)(18,154,558)(18,337,838)

Current income tax expense
-(7,128)(18,039)(21,384)
Deferred income tax recovery
(203,306)126,777-387,562
Net income (loss) from continuing operations
(5,353,969)(4,270,512)(18,172,597)(17,971,660)

Income (loss) from discontinued operations
(108,451)(133,252)(452,697)(3,129,201)
Net loss
(5,462,420)(4,403,764)(18,625,294)(21,100,861)

Other comprehensive income (loss)
Exchange differences on translating foreign operations, continuing operations
(301,569)(173,184)56,304(188,316)
Comprehensive income (loss)
(5,763,989)(4,576,948)(18,568,990)(21,289,177)

Net loss from C/O attributed to:
Parent
(3,609,011)(4,270,512)(15,233,423)(17,971,660)
Non controlling interest - PL
(1,744,958)-(2,939,174)-

Net loss from D/O attributed to:
Parent
(108,451)(133,252)(452,697)(3,129,201)
Non controlling interest - PL
----

Comprehensive loss attributed to:
Parent
(4,019,031)(4,576,948)(15,629,816)(21,289,177)
Non controlling interest
(1,744,958)-(2,939,174)-

Loss per share from C/O - basic and diluted
(0.03)(0.04)(0.14)(0.18)


Loss per share from D/O - basic and diluted
(0.00)(0.00)(0.00)(0.03)

Weighted average number of common shares outstanding
Basic and diluted
116,483,96698,641,286111,118,47599,201,669

Condensed Consolidated Interim Statements of Cash Flows



YTD
30-Sep-2330-Sep-22
Operating activities:


Net loss
(18,625,294)(21,100,861)
Items not affecting cash
Amortization of intangible assets
1,595,8172,076,161
Amortization of ROU
55,728204,476
Depreciation of property and equipment
64,457111,182
Expenses paid by shares
474,2501,446,852
Interest expense from lease
21,62322,043
Interest income from sublease
(26,774)-
Impairment of intangible assets & goodwill
184,0972,702,313
Income tax expense (recovery)
18,039-
Deferred tax expense (recovery)
-(387,562)
Gain on short-term investment
-(90,744)
Gain on sublease recognition
(120,626)-
Loss on asset disposal
85,679-
Loss on PET disposal
173,534-
Stock based compensation
3,560,4411,768,392
Changes in non-cash working capital balances
Receivables
641,582438,862
Deferred asset
165,650(260,639)
Contract asset
114,097124,510
Prepaid expenses
(96,685)277,032
Inventory
45,2892,251,124
Accounts payable and accrued liabilities
914,842(451,613)
Factor liability
505,847-
Deferred revenue
(138,524)(137,166)
Total operating cash flow
(10,386,931)(11,005,638)

Cashflows from investing activities
Purchase of equipment
(162,813)(83,606)
Payments received from sublease
16,577-
Net cash provided by (used in) investing activities, continuing operations
(146,236)(83,606)

Cashflows from financing activities
NTAR - Net proceeds from private placements
4,778,0608,938,406
NTAR - Proceeds from Employee Pay Program
2,388,6981,488,526
Proceeds from securities issuances to NCI
2,682,260-
Repayment of loan
-(90,896)
Payments of lease liability
(157,224)(282,787)
Net cash provided by (used in) financing activities, continuing operations
9,691,79410,053,249

Effects of foreign exchange on cash
52,956(910,835)
Change in cash during the period
(841,373)(1,035,995)
Cash, beginning of period
3,777,1177,237,296
Cash, end of period
2,988,7005,290,466

Taxes paid
-21,790
Interest paid
21,62323,457
Interest received from sublease
4,510-
Interest received from GIC
78,24673,721

Earnings Call Details:

  • Title:Nextech3D.ai 2023 Third Quarter Earnings and Conference Call
  • Call Date: Wednesday, November 29, 2023.
  • Time: 5:00 PM (GMT-04:00) Eastern Time (US and Canada)

Participant Details:

For those unable to join the live event, a recording of the presentation will be posted on the Company's Investor Relations website.

Sign up for Investor News and Info -Click Here

About Nextech3D.ai

Nextech3D.ai or the "Company," (OTCQX:NEXCF)(CSE:NTAR)(FSE:EP2), is a versatile augmented reality and AI technology company that utilizes its proprietary artificial intelligence (AI) to craft immersive 3D experiences at scale for E-COMMERCE. The Company's primary focus lies in creating high-quality 3D WebAR photorealistic models for Amazon and various other online retailers. Nextech3D.ai has adopted a unique approach to creating shareholder value beyond its operating business of creating 3D models.

The Company also develops or acquires disruptive AI-technologies, which are subsequently spun out to shareholders as standalone public companies. This spin-out strategy allows Nextech3D.ai to issue stock dividends to its shareholders while maintaining significant ownership in the public spin-out, without dilution to the parent company Nextech3D.ai.

Notably, Nextech3D.ai successfully spun out "ARway," (OTCQB:ARWYF)(CSE:ARWY)(FSE:E65) its spatial computing platform, as a standalone public company on October 26, 2022. The Company retains a 49% stake with 13 million shares in ARway Corp. while distributing 4 million shares to Nextech shareholders.

Similarly, Nextech3D.ai accomplished its second spin-out launching Toggle3D.ai, (OTCQB:TGGLF)(CSE:TGGL)(FSE:Q0C ) an AI-powered 3D design studio aimed at competing with Adobe. The Company retains a 44% stake with 13 million shares in Toggle3D.ai Corp.

To learn more, please follow us on Twitter, YouTube, Instagram, LinkedIn, and Facebook, or visit our website: https://www.Nextechar.com.

For further information, please contact:
Investor Relations Contact
Julia Viola
investor.relations@nextechar.com

Nextech3D.ai
Evan Gappelberg
CEO and Director
866-ARITIZE (274-8493)

Forward-looking Statements
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, "will be" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements regarding the completion of the transaction are subject to known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove to be accurate, as future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Nextech will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.

SOURCE: Nextech3D.ai



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