Nextech3D.ai Reports Sales Surging +550% YoY & Record 3D Modeling Revenue For First Quarter 2023

Nextech3D.ai Reports Sales Surging +550% YoY & Record 3D Modeling Revenue For First Quarter 2023

 

Q1 Highlights

 
  • Multiple Breakthrough Generative AI Patents Filed
  •  
  • Delivered 20,000 3D Models to Amazon
  •  
  • Year Over Year 3D Model Revenue Growth +550%
  •  
  • Sequential Technology Revenue Growth +40%
  •  

Nextech3D.ai (formally "Nextech AR Solutions Corp" or the "Company") (OTCQX:NEXCF)(CSE:NTAR)(FSE:EP2), a generative AI-powered 3D model supplier for Amazon, P&G, Kohl's, and other major e-commerce retailers reports its unaudited financial and operating results for its first quarter ended March 31, 2023

 

Please join Evan Gappelberg, Chief Executive Officer and Andrew Chan, Chief Financial Officer after the close today May 18, 2023 at 5:00 P.M. ET where Nextech will host a conference call to discuss these financial results.

 

Evan Gappelberg - CEO Commentary:

 

"Our first quarter 2023 results are quite impressive with 550% year over year growth and 40% sequential growth over Q4, 2022. However, it only represents the early days of the megatrend for 3D models in e-commerce and marks a new beginning of our growth curve. With our breakthrough generative AI we are perfectly positioned to ride the $100 billion 3D modeling wave for the next decade." He continued, "2023 is going to be the year of AI for Nextech3D.ai…and the world. Most importantly we have been working towards this moment by investing in AI going all the way back to 2019. However, we really ramped up our investment in the summer of 2021 when we put $10 million down to acquire AI startup Threedy.ai. Today, I'm happy to report that this investment is now starting to pay dividends for our shareholders and I expect to report additional growth in the coming quarters on the back of our continuing investment in our breakthrough generative AI".

 

Unaudited 2023 Q1 Financial Highlights

 
  • Total technology revenue sequential quarterly growth of +40% on $1.3 million of revenue
  •  
  • 3D model revenue increased +550% compared to Q1 2022
  •  
  • Gross profit increased to 41% from 39% in sequential quarters and is projected to increase in Q2
  •  

Condensed Consolidated Interim Statements of Financial Position

 
                                                                                                                                                                                                                                                                                                            
 
March 31, 2023 December 31, 2022 
Assets
    
     
Current assets
    
Cash & cash equivalents (Note 3)
$3,502,217 $3,777,117 
Short-term investment
 -  - 
Receivables (Note 4)
 -  744,331 
Deferred asset (Note 6)
 941,071  256,818 
Contract asset (Note 13)
 253,474  332,197 
Prepaid expenses (Note 5)
 267,922  310,906 
Inventory
 393,394  45,289 
Non current assets held for sale
    501,188 
 
 5,358,078  5,967,846 
Non-current assets
      
Equipment (Note 7)
 200,754  278,463 
Deferred consideration (Note 15)
 205,230  - 
Right of use asset (Note 8)
 778,351  829,278 
Intangible assets (Note 9)
 2,816,471  3,313,741 
Goodwill (Note 9)
 6,624,776  6,746,378 
Total assets
$15,983,660 $17,135,706 
 
      
Liabilities and Shareholders' Equity
      
 
      
Current liabilities
      
Accounts payable and accrued liabilities (Note 10)
$2,750,665 $2,641,918 
Deferred revenue (Note 13)
 539,312  437,746 
Lease liability (Note 8)
 157,994  222,250 
Liabilities associated with assets held for sale
    92,532 
 
 3,447,971  3,394,446 
Non-current liabilities
      
Lease liability (Note 8)
 591,142  582,586 
Deferred income tax liability
 (69,373)  29,974 
Loan payable
 -  - 
Total liabilities
 3,969,740  4,007,006 
 
      
 
Shareholders' Equity 
      
Share capital (Note 11)
 86,931,638  83,271,707 
Reserves
 14,380,369  12,754,706 
Accumulated Other Comprehensive Income
 730,653  827,101 
Shareholder's equity attributable to Nextech shareholders
 (91,763,291)  (85,898,862) 
Total common shareholders' equity
 10,279,369  10,954,652 
Non controlling interest
 1,734,551  2,174,048 
Total equity
 12,013,920  13,128,700 
Total liabilities and shareholders' equity
$15,983,660 $17,135,706 
 

Condensed Consolidated Interim Statements of Comprehensive Loss

 
                                                                                                                                                                                                                                                                                                                                                                                                      
 
 Three months ended  Three months ended 
 
 March 31, 2023  March 31, 2022 
       
Revenue (Note 13)
 $1,301,194  $510,211 
Cost of sales (Note 14)
  (767,308)   (254,483) 
Gross profit
  533,886   255,728 
 
        
Operating expenses:
        
Sales and marketing (Note 14)
  1,650,308   1,652,708 
General and administrative (Note 14)
  2,591,629   3,021,987 
Research and development (Note 14)
  879,904   1,027,194 
Stock based compensation (Note 11)
  1,170,671   578,805 
Amortization (Note 9)
  530,659   373,594 
Depreciation (Note 7)
  29,331   31,659 
Right of use amortization (Note 8)
  55,846   19,226 
 
  6,908,348   6,705,173 
 
        
Other expense (income)
        
Loss (gain) on disposition (Note 15)
  194,979   - 
Impairment of goodwill (Note 15)
  184,097   - 
Foreign exchange gain (loss)
  (93,962)   441,880 
 
  285,114   441,880 
 
        
Loss before income taxes
  (6,659,576)   (6,891,325) 
Current income tax expense
  (9,020)   (7,128) 
Deferred income tax recovery
  104,667   37,462 
Net loss from operations
 $(6,563,929)  $(6,860,991) 
 
        
Income (loss) from discontinued operations
 $-  $(589,241) 
 
        
Other comprehensive loss
        
Exchange differences on translating foreign operations, continuing operations
  (96,448)   - 
Exchange differences on translating foreign operations, discontinued operations
      (24,687) 
Total comprehensive loss
 $(6,660,377)  $(7,474,919) 
 
        
Non controlling interests
  (699,499)   - 
 
        
Total comprehensive loss attributable to Nextech shareholders
 $(5,960,878)  $(7,474,919) 
 
        
 
        
Income (loss) per common share
        
Basic and diluted loss per common share, continuing operations
  (0.06)   (0.07) 
Basic and diluted loss per common share, discontinued operations
      (0.05) 
Weighted average number of common shares outstanding
Basic and diluted
  106,925,657   97,550,931 
 

Condensed Consolidated Interim Statements of Cash Flows

 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
 
 Three months ended  Three months ended 
 
 March 31, 2023  March 31, 2022 
Cashflows from operating activities
      
Net loss, continuing operations
 $(6,563,929)  $(6,860,991) 
Discontinued operations
      - 
Net loss, discontinuing operations
  -   (589,241) 
 
        
Items not affecting cash
        
Amortization of intangible assets
  531,458   728,378 
Deferred income tax recovery
  -   (138,933) 
Impairment of intangible assets & goodwill
  184,097   - 
Amortization of right to use asset
  55,846   63,082 
Depreciation of property and equipment
  29,331   37,117 
Employee pay program
  309,593   717,066 
Treasury shares for employee pay program
  (252,366)     
Stock based compensation
  1,170,671   578,805 
Write off equipment
  85,679   - 
Deferred consideration receivable on sale of PET
  (205,230)   - 
 
        
 
        
Receivables
  (129,780)   62,150 
Deferred asset
  (11,104)   - 
Contract asset
  78,723   261,220 
Prepaid expenses
  (52,663)   (145,331) 
Inventory
  434,756   861,905 
Accounts payable and accrued liabilities
  16,218   (848,858) 
Deferred revenue
  101,566   13,897 
Deferred tax liability
  (99,347)   - 
Cashflows from operating activities, continuing operations
 $(4,316,481)  $(5,841,560) 
Cashflows from operating activities, discontinued operations
  -   581,826 
 
        
Cashflows from investing activities
        
Purchase of equipment
  (29,000)   (46,553) 
Interest on lease liability
  (6,823)   (6,712) 
Net cash provided by (used in) investing activities, continuing operations
 $(35,823)  $(48,071) 
Net cash provided by (used in) investing activities, discontinued operations
  -   (5,194) 
 
        
Cashflows from financing activities
        
Proceeds from Employee Pay Program
  1,579,220   - 
Proceeds from private placement, net of issuance costs
  2,651,730   8,936,496 
Payment of lease obligations
  (131,499)   (73,398) 
Issuances to non controlling interest, net of issuance costs
  86,748   - 
Net cash provided by (used in) financing activities, continuing operations
 $4,186,199  $8,936,496 
Net cash provided by (used in) financing activities, discontinued operations
  -   (73,398) 
 
        
Change in cash during the period
  (166,105)   3,550,099 
Cash, beginning of period
  3,786,493   7,237,296 
Effects of foreign exchange on cash
  (32,161)   (5,620) 
 
        
Cash, end of period, continuing operations
  3,588,227   10,610,765 
Cash, end of period, discontinued operations
  -   171,010 
Cash, end of period
 $3,588,227  $10,781,775 
 
        
Supplemental cash flow information
        
Taxes paid
  800   - 
Interest paid
  5,467   9,550 
Interest received
  33,789   11,830 
 

Earnings Call Details

 

Title: Nextech3D.ai Announces 2023 First Quarter Earnings & Conference Call

 

Call Date: Thursday May 18, 2023

 

Time: 5:00PM (GMT-04:00) Eastern Time (US and Canada)

 

Participant Details

 

Participant Toll-Free Dial-In Number: 1 (888) 330-2024

 

Participant Toll Dial-In Number: 1 (646) 960-0187

 

Conference ID: 7778367

 

Webcast Link: https://events.q4inc.com/attendee/768727107

 

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

 

Recent News

 

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

 

About Nextech3D.ai

 

(formally "Nextech AR Solutions Corp" or the "Company") (OTCQX:NEXCF)(CSE:NTAR)(FSE:EP2 is a diversified augmented reality, AI technology company that leverages proprietary artificial intelligence (AI) to create 3D experiences for the metaverse. Its main businesses are creating 3D WebAR photorealistic models for the Prime Ecommerce Marketplace as well as many other online retailers. The Company develops or acquires what it believes are disruptive technologies and once commercialized, spins them out as stand-alone public Companies issuing a stock dividend to shareholders while retaining a significant ownership stake in the public spin-out.

 

On October 26, 2022 Nextech3D.ai spun out its spatial computing platform, "ARway" as a stand alone public Company. Nextech3D.ai retained a control ownership in ARway Corp. with 13 million shares, or a 50% stake, and distributed 4 million shares to Nextech AR Shareholders. ARway is currently listed on the Canadian Securities Exchange (CSE:ARWY), in USA on the OTCQB (OTC:ARWYF) and Internationally on the Frankfurt Stock Exchange (FSE: E65). ARway Corp. is disrupting the augmented reality wayfinding market with a no-code, no beacon spatial computing platform enabled by visual marker tracking.

 

On December 14, 2022 Nextech announced its second spinout of Toggle3D, an AI-powered 3D design studio to compete with Adobe. Toggle3D is expected to be public in the first half of 2023. To learn more about ARway, visit https://www.arway.ai/

 

For further information, please contact:

 

Investor Relations Contact
Lindsay Betts
investor.relations@Nextechar.com
866-ARITIZE (274-8493) Ext 7201

 

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

 

View source version on accesswire.com:
https://www.accesswire.com/755913/Nextech3Dai-Reports-Sales-Surging-550-YoY-Record-3D-Modeling-Revenue-For-First-Quarter-2023

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