Nextech3D.ai Reports Fiscal Year 2023 and Fourth Quarter 2023 Audited Financial Results

Nextech3D.ai Reports Fiscal Year 2023 and Fourth Quarter 2023 Audited Financial Results

 

2023 Annual revenue growth of + 56%

 

2023 Annual revenue of $5 million

 

Nextech3D.ai (OTCQX:NEXCF)(CSE:NTAR)(FSE:EP2), a patented 2D-3D Generative AI-Powered 3D model supplier (Patent #11,948,248) for Amazon, Miele, P&G, Kohls, Wesfarmers Group "Bunnings" and other major e-commerce retailers reports its Fiscal Year 2023 and Fourth Quarter 2023 Financial Results the year ended December 31, 2023

 

Please join Evan Gappelberg, Chief Executive Officer and Andrew Chan, Chief Financial Officer today after the close where Nextech3D.ai will host a conference call to discuss these financial results.

 

Evan Gappelberg - CEO Commentary:

 

Preliminary Annual 2023 Financial Highlights

 

2023 Annual revenue growth of + 56%

 

2023 Annual revenue of $5 million compared to $3.2 million in 2022

 

70,000 3D models created to date

 

2024 Outlook

 

New demand for 3D models expected to gain momentum throughout the year driven by large enterprise customers

 

2023-Cost cutting measures and pivot to India to reduce the company's burn in 2024 by as much as 75%

 

Q1 2024 Gross Profit margins estimated to be 50-55%

 

Q2 2024 Gross margin estimated to be 80%

 

Q2 Improved margins puts India 3D modeling business as a stand alone business unit projected to go cash flow positive

 

New 3D photography and AI driven product launches expected to drive additional revenue and growth in 2024

 

Multiple patents already issued in 2024 with additional patent issuances expected

 

Company is Launching Several Enhanced AI 3D Productivity Tools in Q2, Q3 2024

 

Nextech3D.ai Corporation
Statement of Financial Position
December 31, 2023

 
                                                                                                                                                                                                                                                                                                                                                                           
 
 31-Dec-23  31-Dec-22 
ASSETS
      
Current
      
Cash & cash equivalents
  907,847   3,777,117 
Receivables
  357,398   744,331 
Contract asset
  51,320   589,015 
Finance lease receivable on sublease CP
  199,933   - 
Prepaid expenses
  294,471   310,906 
Inventory
  -   45,289 
Non current assets held for sale
  -   501,188 
Total current assets
  1,810,969   5,967,846 

        
Equipment
  325,633   278,463 
Deferred consideration
  206,850   - 
Right of use asset
  -   829,278 
Finance lease receivable on sublease
  642,983   - 
Intangible assets
  -   3,313,741 
Goodwill
  -   6,746,378 
Total assets
  2,986,435   17,135,706 

        
LIABILITIES
        
Current
        
Accounts payable and accrued liabilities
  3,531,460   2,641,918 
Deferred revenue
  342,192   437,746 
Lease liability
  143,722   222,250 
Liabilities associated with assets held for sale
  -   92,532 
Total current liabilities
  4,017,374   3,394,446 

        
Lease liability - non current
  469,624   582,586 
Deferred tax liabilities
  -   29,974 
Total liabilities
  4,486,998   4,007,006 

        
Shareholders' Equity
        
Share capital
  91,909,495   83,271,707 
Reserves
  14,166,972   12,754,706 
Accumulated Other Comprehensive Income
  678,143   827,101 
Shareholder's equity attributable to Nextech shareholders
  (112,211,223)  (85,898,862)
Total common shareholders' equity
  (5,456,613)  10,954,652 
Non controlling interest
  3,956,050   2,174,048 
Total equity
  (1,500,563)  13,128,700 
Total liabilities and shareholders' equity
  2,986,435   17,135,706 
 

Nextech3D.ai Corporation
Statement of Loss and Comprehensive Loss
December 31, 2023

 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 
    YTD 
 
       31-Dec-23  31-Dec-22 
         $   $ 
Revenue
        5,033,202   3,224,791 
Cost of sales
        (3,586,162)  (1,593,076)
Gross profit
        1,447,040   1,631,715 

              
Operating expenses:
              
Sales and marketing
        4,546,502   5,013,367 
General and administrative
        9,362,610   13,377,575 
Research and development
        3,249,799   3,892,208 
Stock based compensation
        1,775,695   1,715,690 
Amortization
        2,105,689   2,655,652 
Right of use amortization
        55,728   76,905 
Depreciation
        87,824   122,930 
Operating profit (loss)
        (19,736,807)  (25,222,612)

              
Other income (expense):
              
Gain on sublease recognition
        120,626   - 
Loss on asset disposal
        (85,679)  - 
Gain on liability
        -   381,019 
Impairment of intangible assets and goodwill
        (7,575,263)  (476,113)
Foreign exchange gain (loss)
        (14,393)  1,345,593 
Profit (Loss) before income taxes
        (27,291,516)  (23,972,113)

              
Current income tax expense
        -   (34,937)
Deferred income tax recovery
        29,974   672,148 
Net income (loss) from continuing operations
        (27,261,542)  (23,334,902)

              
Income (loss) from discontinued operations
        (452,814)  (4,043,424)
Net loss
        (27,714,356)  (27,378,326)

              
Other comprehensive income (loss)
              
Exchange differences on translating foreign operations, continuing operations
        (148,958)  (432,845)
Comprehensive income (loss)
        (27,863,314)  (27,811,171)

              
Net loss from C/O attributed to:
              
Parent
        (25,109,547)  (22,896,701)
Non controlling interest - PL
        (2,151,995)  (438,201)

              
Net loss from D/O attributed to:
              
Parent
        (452,814)  (4,043,424)
Non controlling interest - PL
        -   - 

              
Comprehensive loss attributed to:
              
Parent
        (25,711,319)  (27,372,970)
Non controlling interest
        (2,151,995)  (438,201)

              

              
Loss per share from C/O - basic and diluted
        (0.22)  (0.24)

              

              
Loss per share from D/O - basic and diluted
        (0.00)  (0.04)

              
Weighted average number of common shares outstanding              
Basic and diluted
        114,085,494   100,201,691 
 

Nextech3D.ai Corporation
Statement of Cash Flow
December 31, 2023

 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
  YTD 
  31-Dec-23  31-Dec-22 
Operating activities:
      
Net loss
  (27,714,356)  (27,378,326)
Adjustment for:
        
Interest income from sublease
  (39,903)  - 
Interest expense from lease
  30,217   28,668 
Stock based compensation
  1,775,695   1,715,690 
Amortization of intangible assets
  2,105,689   2,655,652 
Amortization of ROU
  55,728   261,101 
Depreciation of property and equipment
  87,824   143,567 
Gain on sublease recognition
  (120,626)  - 
Loss on asset disposal
  85,679   - 
Gain on short-term investment
  -   (381,019)
Impairment of intangible assets & goodwill
  7,759,360   3,178,426 
Expenses paid by shares
  648,891   1,917,837 
Loss on PET disposal
  173,534   - 
Income tax expense (recovery)
  -   - 
Changes in non-cash working capital balances
        
Receivables
  386,933   269,873 
Contract asset
  537,695   (202,813)
Prepaid expenses
  16,435   408,743 
Inventory
  45,289   2,954,342 
Accounts payable and accrued liabilities
  917,814   (24,574)
Deferred revenue
  (95,554)  (171,255)
Deferred tax liability
  -   (673,290)
Total operating cash flow
  (13,343,656)  (15,297,378)

        
Cashflows from investing activities
        
Purchase of equipment
  (227,250)  (101,784)
Payments received from sublease
  66,554   - 
Net cash provided by (used in) investing activities, continuing operations
  (160,696)  (101,784)

        
Cashflows from financing activities
        
NTAR - Net proceeds from private placements
  5,726,654   8,890,349 
NTAR - Proceeds from Employee Pay Program
  2,269,704   2,496,628 
Proceeds from securities issuances to NCI
  2,813,107   1,657,354 
Repayment of loan
  -   (90,896)
Payments of lease liability
  (203,762)  (388,804)
Net cash provided by (used in) financing activities, continuing operations
  10,605,703   12,564,631 

        
Effects of foreign exchange on cash
  29,379   (616,272)
Change in cash during the period
  (2,898,649)  (2,834,531)
Cash, beginning of period
  3,777,117   7,237,296 
Cash, end of period, continuing operations
  907,847   3,786,493 

        
Cash, end of period, continuing operations
  907,847   3,777,117 
Cash, end of period, discontinuing operations
  -   9,376 

        
Taxes paid
  -   27,005 
Interest paid
  30,217   30,910 
Cash interest received
  121,122   108,390 
 

Conference Call Details:

 

Title: Nextech3D.ai Full Year 2023 and Q4 2023 Financial Results
Call Date: Monday, April 29, 2024
Time: 05:00 PM (GMT-04:00) Eastern Time (US and Canada)

 

Participant Details: 

North America Toll-Free: (888) 330-2024
North America Toll: (646) 960-0187
International Toll: +1(646) 960-0187
Conference ID: 7778367
Webcast Attendee URL: https://events.q4inc.com/attendee/810085104

 

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

 

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)

 

About Nextech3D.ai 
Nextech3D.ai or the "Company," (OTCQX:NEXCF)(CSE:NTAR)(FSE:1SS), 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 with patented 2D-3D technology. 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.

 

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

 
 

View the original press release on accesswire.com

News Provided by ACCESSWIRE via QuoteMedia

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