Mr. Evan Gappelberg reports

NEXTECH3D.AI REPORTS +157% YEAR TO DATE REVENUE GROWTH

Nextech AR Solutions Corp. (doing business as Nextech3D.AI) has released its financial and operating results for its second quarter ended June 30, 2023.

Please join Evan Gappelberg, chief executive officer, and Andrew Chan, chief financial officer, after the close today Aug. 22, 2023, at 5 p.m. ET where Nextech3D.ai will host a conference call to discuss these financial results.

Evan Gappelberg -- CEO commentary:

"Our results for Q2 were in line with our prelim numbers as we achieved record sales of $1.4-million, plus 155 per cent over Q2 2022. However, based on the current order flow from Amazon and others, we are projecting a breakout Q3 quarter with revenue of $1.7-million." He continued: "In Q3 we are not only seeing our revenue accelerate but our focused team has been successful in reducing our burn down to a minimum level that I have not seen in years. I'm excited to report to our loyal shareholders that with contributions from increased revenue and shares for services on an unconsolidated basis, we've reduced Nextech3D.ai's cash burn down to $300,000 which, when combined with our recent capital raise, gives me the confidence in saying that we won't need to raise additional capital for the next 12 months. Nextech3D.ai's groundbreaking generative AI technology positions the company as a leading AI solution globally for scaling 3-D model production in the thriving e-commerce, gaming and manufacturing industries. Furthermore, thanks to our latest funding round, our cash position is now robust enough to accommodate the increased demand we anticipate in the second half of 2023 and beyond."

Unaudited Q2 2023 financial highlights:

• Three month quarterly revenue up plus 155 per cent compared with same period last year;
• Sequential quarterly revenue grew 8 per cent;
• Delivery of over 50,000 3-D models to date.

Six months ending June 30, 2023:

• Year to date revenue up plus 157 per cent compared with same period last year;
• Gross profit remained consistent at 39 per cent.

Earnings call details

Title:   Nextech3D.ai 2023 second quarter earnings and conference call

Call date:  Tuesday, Aug. 22, 2023

Time:  5 p.m. Eastern Time (United States 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

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

Update on previously announced warrant issuances

The company previously announced on July 13, 2023, that in order to manage its cash flow and reduce or possibly eliminate its dependency of raising capital for payroll or contractor expenses it has renewed its previous share purchase warrant program pursuant to which, over the ensuing 12-month period, it will issue an aggregate of 6,661,388 share purchase warrants to its service providers in connection with their employment and/or consulting arrangements with the company. Each warrant will be exercisable to acquire one common share of the company at an exercise price of 55 cents for a period of one year. The company has now issued these warrants as of Aug. 21, 2023.

Recent news

• Nextech3D.ai announces new production record having delivered more than 50,000 3-d models;
• Nextech3D.ai provides earnings call details for Q2 2023 financial results Aug. 22;
• Nextech3D.ai reports record preliminary Q2 revenue up plus 155 per cent to $1.4-million and guides towards breakout Q3 revenue plus 200 per cent of $1.7-million to $1.9-million amid surging 3-D model demand.

The Public Company CEO Experience Podcast

Nextech3D.ai has recently "The Public Company CEO Experience Podcast," featuring Evan Gappelberg, a highly accomplished three-time public company CEO and serial entrepreneur. The podcast offers listeners an exclusive behind-the-scenes look into the dynamic life of a public company CEO with valuable insights, while also discussing trending topics and providing business updates on Nexech3D.ai, Toggle3D.ai and ARway.ai.

About Nextech3D.ai

Nextech3D.ai is a versatile augmented reality and AI technology company that utilizes its proprietary artificial intelligence (AI) to craft immersive 3-D experiences at scale for e-commerce. The company's primary focus lies in creating high-quality 3-D WebAR photorealistic models for Amazon and various other on-line retailers. Nextech3D.ai has adopted a unique approach to creating shareholder value beyond its operating business of creating 3-D models.

The company also develops or acquires disruptive AI technologies, which are subsequently spun out to shareholders as stand-alone public companies. This spinout strategy allows Nextech3D.ai to issue stock dividends to its shareholders while maintaining significant ownership in the public spinout, without dilution to the parent company Nextech3D.ai.

Notably, Nextech3D.ai successfully spun out ARway, its spatial computing platform, as a stand-alone public company on Oct. 26, 2022. The company retains a 49-per-cent stake with 13 million shares in ARway Corp. while distributing four million shares to Nextech AR shareholders.

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