Yahoo Finance 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 | ||||
| ||||||
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 | 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
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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
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