Mr. Evan Gappelberg reports

NEXTECH3D.AI ESTABLISHES NEW BUSINESS UNIT LED BY FORMER META EXECUTIVE, TARGETING JEWELRY INDUSTRY WITH GPT AI CAD-3D MODELS, BLOCKCHAIN TECHNOLOGY, AND NFTS

Nextech3D.AI has established a new business unit to target the jewellery industry with 3-D models, blockchain technology and NFTs (non-fungible tokens). The initiative will be led by former Meta and Microsoft executive Hareesh Achi, who is Nextech3D.AI's current head of product operations. This new business unit will focus on using the GPT AI (generative pretrained transformers artificial intelligence) CAD to 3-D texturing platform of its spinoff company, Toggle3D.ai. Toggle3D.ai's technology can convert jewellery CAD files into lightweight, Web-friendly 4K 3-D quad meshes, then uses AI to texture the jewellery in yellow gold, white gold or rose gold. After this is complete, the AI photography studio creates stunning lifestyle images before it is published onto the Web. Toggle3D.ai intends to license this all-in-one GPT AI platform to global manufacturers, while Nextech3D.AI will be conducting the sales and marketing for this new business unit.

The company's strategic move to license its GPT AI tech is set to remove the traditional barriers of price and volume that have long restricted the accessibility of high-quality 3-D modelling technology for e-commerce and other industries. Nextech3D.AI has leveraged its groundbreaking GPT AI-powered technology to dramatically slash the cost of 3-D models from CAD files to $10 to $20 while producing the highest-quality 4K quad mesh photorealistic models, enabling scalability while creating a new highly profitable business.

The company recently announced the launch of the next era of GPT AI 3-D product solutions of proprietary artificial intelligence (AI) algorithms which is the foundation of this new business unit which now is combining the power of blockchain technology and non-fungible tokens (NFTs), opening new avenues for revenue and innovation across various sectors within the jewellery industry. The company is working at the integration of 3-D modelling with blockchain technology and NFTs, focusing on its implications at first within the jewellery sector. This synergy can enhance authenticity, ownership and engagement in a market increasingly influenced by digital natives driving value to the substantial global jewellery market.

The company is looking to capitalize on the intersection of GPT AI CAD 3-D models, blockchain technology and NFTs in jewellery

GPT AI CAD 3-D modelling technology allows designers to create intricate and customizable jewellery designs that can be viewed and modified in real time, offering personalization and efficiency in production. This digital transformation not only streamlines the manufacturing process but also enables consumers to engage directly with the creation of their jewellery, enhancing the customer experience. Blockchain technology provides a secure and immutable ledger, ideal for certifying the authenticity and provenance of jewellery pieces. By recording the entire life cycle of a jewellery item on the blockchain, from raw material sourcing through to the finished product, consumers can verify its authenticity and ethical sourcing. The NFTs represent a unique digital ownership certificate for an asset, stored on a blockchain. In the jewellery industry, NFTs can be used to authenticate ownership of both physical and digital jewellery pieces, offering a new level of exclusivity and personalization. For digital jewellery, NFTs open up avenues for consumers to express themselves in virtual spaces, including social media and virtual reality platforms, where digital assets are becoming increasingly valuable.

NFTs for ownership and exclusivity

Application and benefits:

• Enhancing customer engagement and loyalty -- the integration of 3-D models, blockchain and NFTs enables jewellery brands to offer personalized and immersive shopping experiences. Customers can participate in the design process through 3-D modelling, verify the authenticity and history of their purchases via blockchain, and gain exclusive ownership rights through NFTs. This level of engagement fosters a deeper connection between the brand and its customers, enhancing loyalty.
• Opening new markets: digital and physical jewellery -- the fusion of these technologies allows for the creation of both physical jewellery pieces and their digital counterparts. NFTs enable the sale and trade of digital jewellery in virtual environments, appealing to Generation Z's increasing presence in these spaces. Additionally, NFTs linked to physical jewellery pieces can enhance the value and desirability of the tangible product.
• Addressing counterfeiting and promoting sustainability -- blockchain's record-keeping capability significantly reduces the risk of counterfeiting, ensuring that customers receive genuine products. Furthermore, transparently tracking the sourcing and production process promotes ethical and sustainable practices in jewellery manufacturing, aligning with the values of Generation Z consumers.
• Challenges and considerations -- while the potential benefits are significant, challenges such as technological complexity, privacy concerns and the environmental impact of blockchain technology must be addressed. Education and awareness efforts are essential to facilitate adoption, while continuing innovation and collaboration will be crucial to mitigate environmental concerns associated with blockchain technology.

The integration of 3-D modelling, blockchain technology and NFTs presents an opportunity for the jewellery industry, particularly in engaging with Generation Z consumers. By offering enhanced personalization, authenticity and digital experiences, this technological synergy not only meets the unique demands of Generation Z but also sets a new standard for innovation in the luxury goods market. As the industry navigates this digital revolution, embracing these technologies can lead to sustainable growth and a deeper connection with the next generation of consumers.

Three-dimensional modelling technology significantly enhances value in the jewellery industry through various avenues, particularly in terms of customization, visualization and production efficiency. Here's a detailed exploration of how 3-D models add value:

Enhanced customization and personalization

Three-dimensional modelling allows for high levels of customization and personalization that were previously difficult or impossible to achieve with traditional jewellery design methods. Customers can be directly involved in the design process, selecting materials, shapes and styles to create a piece that is uniquely theirs. By offering personalized experiences, jewellery brands can significantly increase customer satisfaction and loyalty.

Improved visualization and consumer confidence

With 3-D models, customers can visualize jewellery pieces in exquisite detail before making a purchase, including viewing items from multiple angles and understanding intricate designs. This visualization capability is crucial for on-line shopping, where the inability to physically inspect products can be a barrier to purchase. By providing a realistic representation of jewellery pieces, 3-D modelling technology enhances consumer confidence, reducing hesitation and potentially increasing conversion rates.

Streamlining production and reducing costs

From a production standpoint, GTP AI CAD 3-D models streamline the manufacturing process, allowing for rapid prototyping and adjustments without the need for expensive and time-consuming physical samples. This efficiency not only reduces production costs but also accelerates the time to market for new designs. Furthermore, the precision of 3-D modelling minimizes errors in the production process, resulting in higher-quality products and less waste.

Facilitating omnichannel experiences

Three-dimensional models are pivotal in creating seamless omnichannel shopping experiences. They can be integrated into various platforms, from on-line stores and social media to augmented reality (AR) applications, allowing customers to interact with jewellery pieces in innovative ways. For example, AR apps can enable consumers to virtually try on jewellery, enhancing engagement and interactivity across digital channels, creating fluid, interactive shopping experiences across all touchpoints.

The company believes that 3-D modelling technology adds significant value to the jewellery industry by enhancing customization and personalization, improving visualization and consumer confidence, streamlining production processes, facilitating omnichannel experiences, and supporting sustainability efforts. As the industry seeks to attract and retain consumers, leveraging 3-D models offers a compelling way to meet their expectations for innovation, quality and ethical consumerism.

NFTs and 3-D models can work together to generate revenue

The combination of 3-D modelling and non-fungible tokens (NFTs) presents a novel and exciting opportunity to create and enhance value in the jewellery industry. This synergy not only appeals to traditional aspects of value such as uniqueness and ownership but also aligns with modern consumer trends, especially among digital-savvy generations like Generation Z. Here is how 3-D models and NFTs can work together to create value in the jewellery sector:

Digital ownership and authenticity

NFTs serve as digital certificates of ownership and authenticity for unique items, stored securely on a blockchain. When applied to 3-D modelled jewellery pieces, NFTs can verify the ownership and originality of both physical and digital jewellery items. This digital authentication process adds immense value by ensuring the item's provenance, a critical factor in the luxury goods market where the authenticity and history of an item significantly influence its value.

Exclusive and customizable digital jewellery

Three-dimensional modelling allows designers to create intricate, customizable jewellery designs that can be minted as NFTs. This opens up a market for exclusive digital jewellery that can be collected, worn in virtual environments, or used as avatars on social media platforms and in virtual worlds. For Generation Z, who spend considerable time in digital spaces, owning unique digital assets is a form of self-expression and status. This exclusivity and customization potential make digital jewellery an attractive investment and fashion statement.

Bridging physical and digital worlds

The integration of 3-D models with NFTs enables a seamless connection between physical jewellery pieces and their digital counterparts. Purchasing a physical jewellery item could also grant the buyer ownership of a digital twin represented by an NFT, which can be used or displayed in virtual spaces. This dual ownership model adds value by offering a comprehensive experience that spans both the physical and digital realms, catering to the modern consumer's lifestyle that increasingly blends the two.

Enhancing customer experience and engagement

The use of 3-D models and NFTs in the jewellery industry can significantly enhance customer engagement by offering an interactive and immersive buying experience. Customers can participate in the creation of their jewellery through 3-D modelling interfaces, making personalized adjustments before finalizing their purchase. The final piece can then be minted as an NFT, providing a new layer of engagement through digital ownership and potential participation in virtual economies. This personalized and interactive process enhances the customer experience, fostering a deeper emotional connection with the brand.

New revenue streams and marketplaces

NFTs enable the creation of new revenue streams and marketplaces for jewellery designers and brands. Digital jewellery pieces can be traded on NFT marketplaces, opening up global markets and attracting new demographics interested in digital fashion and collectibles. Additionally, brands can leverage NFTs to offer limited-edition releases, preorders or special collections, creating hype and exclusivity around their products. This not only generates direct revenue but also enhances brand visibility and engagement in digital spaces.

Sustainability and ethical consumption

Digital jewellery represented by NFTs offers an ecofriendly alternative to traditional jewellery, which often involves resource-intensive production processes. By creating value in digital items, the industry can cater to ethically conscious consumers, including Generation Z, who prioritize sustainability. Digital collectibles reduce the need for physical materials and the environmental impact associated with mining and manufacturing, aligning with the growing demand for responsible and sustainable consumption practices.

The company believes that the integration of 3-D models and NFTs in the jewellery industry represents a timely forward-thinking approach to creating value, blending traditional craftsmanship with digital innovation. By offering authenticated ownership, exclusive digital collectibles, enhanced customer engagement and new revenue opportunities, this synergy caters to the evolving preferences of modern consumers. As the digital and physical realms continue to converge, leveraging 3-D modelling and NFTs will be crucial for the jewellery industry to stay relevant and thrive in the digital age.

Further, the synergy between 3-D models and blockchain technology creates value by enhancing authenticity, facilitating secure transactions, protecting intellectual property, streamlining supply chains and offering customization opportunities. This integration represents a significant step forward in digital innovation, opening up new possibilities for creators, consumers and industries at large. As these technologies continue to evolve, their combined potential to transform traditional business models and marketplaces will only increase, paving the way for a more secure, efficient and innovative future which the company intends to participate in.

Shares for services

The company also announces today that in order to manage its cash flow and reduce or possibly eliminate its dependency of raising capital for payroll it has renewed its share purchase warrant program that was originally announced last year, pursuant to which it will issue an aggregate of 6,275,062 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 26 cents for a period of one year. The warrants will be automatically exercised in equal monthly tranches on a pro rata basis over the term of the warrants, and the exercise price will be satisfied by the monthly salaries otherwise payable by the company to the recipients of the warrants. Upon exercise, the recipients of the warrants may opt to either receive the underlying shares, or participate in a managed sale program to sell the underlying shares on the open market and receive the cash proceeds. Any shortfall as a result of participation in such a managed sale program will be financed by the company.

Bonus shares

The company has issued 200,000 common shares of the company as bonus shares to certain employees/consultants of the company. The bonus shares are being issued at a deemed price of 26 cents per share for past services rendered. All bonus shares issued are subject to a four-month-and-one-day hold period.

About Nextech3D.AI Corp.

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.

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