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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%

TORONTO, ON / ACCESSWIRE / May 18, 2023 / 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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