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-23* *31-Dec-22*
*ASSETS*
*Current*
Cash & cash equivalents
*2,988,700* 3,777,117
Receivables
*102,749* 744,331
Deferred asset
*91,168* 256,818
Contract asset
*218,100* 332,197
Prepaid expenses
*407,591* 310,906
Inventory
*-* 45,289
Non current assets held for sale
*-* 501,188
Total current assets
*3,808,308* 5,967,846
Equipment
*291,637* 278,463
Deferred consideration
*206,850* -
Right of use asset
*-* 829,278
Finance lease receivable on sublease
*898,578* -
Intangible assets
*1,688,111* 3,313,741
Goodwill
*6,560,040* 6,746,378
*Total assets*
*13,453,524* 17,135,706
*LIABILITIES*
*Current*
Accounts payable and accrued liabilities
*3,484,625* 2,641,918
Factoring liability
*505,847* -
Deferred revenue
*299,222* 437,746
Lease liability
*148,037* 222,250
Liabilities associated with assets held for sale
*-* 92,532
Total current liabilities
*4,437,731* 3,394,446
Lease liability - non current
*516,511* 582,586
Deferred tax liabilities
*12,000* 29,974
*Total liabilities*
*4,966,242* 4,007,006
*Shareholders' Equity*
Share capital
*90,530,169* 83,271,707
Reserves
*16,234,630* 12,754,706
Accumulated Other Comprehensive Income
*883,405* 827,101
Shareholder's equity attributable to Nextech shareholders
*(102,334,982* *)* (85,898,862 )
*Total common shareholders' equity*
*5,313,222* 10,954,652
Non controlling interest
*3,174,060* 2,174,048
*Total equity*
*8,487,282* 13,128,700
*Total liabilities and shareholders' equity*
*13,453,524* 17,135,706
*Condensed Consolidated Interim Statements of Comprehensive Loss*
*QTD*
*YTD* *30-Sep-23* *30-Sep-22* *30-Sep-23* *30-Sep-22* *$* $ *$* $
Revenue
*1,178,377* 908,227 *3,882,804* 1,970,383
Cost of sales
*(1,035,692* *)* (348,447 ) *(2,678,033* *)* (950,233 )
*Gross profit*
*142,685* 559,780 *1,204,771* 1,020,150
*Operating expenses:*
Sales and marketing
*867,586* 1,177,539 *3,876,879* 4,079,251
General and administrative
*1,992,096* 2,112,681 *7,376,579* 9,075,983
Research and development
*1,063,667* 1,157,408 *2,820,833* 3,064,874
Stock based compensation
*1,305,299* 311,301 *3,560,441* 1,768,392
Amortization
*565,064* 597,354 *1,595,817* 2,076,161
Right of use amortization
*-* 166,023 *55,728* 204,476
Depreciation
*19,580* 47,943 *64,457* 111,182
*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)
*519,944* 529,564 *(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
*116,483,966* 98,641,286 *111,118,475* 99,201,669
*Condensed Consolidated Interim Statements of Cash Flows*
*YTD*
*30-Sep-23* *30-Sep-22*
*Operating activities:*
Net loss
*(18,625,294* *)* (21,100,861 )
*Items not affecting cash*
Amortization of intangible assets
*1,595,817* 2,076,161
Amortization of ROU
*55,728* 204,476
Depreciation of property and equipment
*64,457* 111,182
Expenses paid by shares
*474,250* 1,446,852
Interest expense from lease
*21,623* 22,043
Interest income from sublease
*(26,774* *)* -
Impairment of intangible assets & goodwill
*184,097* 2,702,313
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
*3,560,441* 1,768,392
*Changes in non-cash working capital balances*
Receivables
*641,582* 438,862
Deferred asset
*165,650* (260,639 )
Contract asset
*114,097* 124,510
Prepaid expenses
*(96,685* *)* 277,032
Inventory
*45,289* 2,251,124
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
*4,778,060* 8,938,406
NTAR - Proceeds from Employee Pay Program
*2,388,698* 1,488,526
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*
*9,691,794* 10,053,249
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
*3,777,117* 7,237,296
*Cash, end of period*
*2,988,700* 5,290,466
Taxes paid
*-* 21,790
Interest paid
*21,623* 23,457
Interest received from sublease
*4,510* -
Interest received from GIC
*78,246* 73,721
*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:*
· *Participant Toll-Free Dial-In Number: *1 (888) 330-2024
· *Participant Toll Dial-In Number: *1 (646) 960-0187
· *Conference ID:* 7778367
· *Webcast Attendee URL: **https://events.q4inc.com/attendee/498235428*
For those unable to join the live event, a recording of the presentation will be posted on the Company's Investor Relations website.
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*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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