20:59:15 EDT Sat 07 Sep 2024
Enter Symbol
or Name
USA
CA



Nextech3D.AI Corp
Symbol NTAR
Shares Issued 133,973,275
Close 2024-05-24 C$ 0.13
Market Cap C$ 17,416,526
Recent Sedar Documents

Nextech3D.AI talks revenue, omits Q1 P&L in NR

2024-05-24 18:15 ET - News Release

Mr. Evan Gappelberg reports

NEXTECH3D.AI REPORTS Q1 2024 REVENUE OF $1,024,000 WITH GROSS PROFIT MARGIN OF 51% OR $526,212 A +70% JUMP OVER 2023

Nextech3D.AI Corp. has released its unaudited financial and operating results for its first quarter ended March 31, 2024.

Chief executive officer Evan Gappelberg comments: "I am pleased to present our financial and operational performance for the first quarter of 2024. Despite a slight year-over-year decline in revenue to $1,024,000, we have made significant strides in improving our profitability and operational efficiency through strategic cost-cutting measures and investments in technology." He continues: "In Q1 2023 we had operational expenses of $1.7-million per month, while in Q1 our operational expenses showed a dramatic improvement as it dropped to about $850,000. We are seeing additional operational improvements in Q2 which again will increase our profitability as we drive towards bringing in additional deals and becoming cash flow positive in 2024."

Financial performance

Revenue: The company's revenue for Q1 2024 stood at $1,024,000. While this represents a decrease compared with the same period last year, it is important to note the transformative steps the company has taken to enhance its business model, which will have a material impact on profitability the rest of the year 2024 and beyond.

Profit margins: The most notable achievement this quarter has been the remarkable improvement in the company's profit margins. Through a combination of rigorous cost-cutting initiatives and strategic investments, particularly in AI (artificial intelligence) technology and the company's operational move to India, the company has seen its margins increase from 30 per cent in 2023 to 51 per cent in Q1 2024. This represents a 66-per-cent improvement.

This positive trend continues into Q2 2024, where the company is projecting margins to reach 70 per cent to 80 per cent, a plus-166-per-cent improvement compared with 2023. This significant increase in profitability underscores the effectiveness of the company's strategies and its commitment to operational excellence.

Operational highlights

3-D modelling business: The company continues to excel in its core 3-D modelling business, delivering thousands of high-quality 3-D models to its largest customer, Amazon, on a monthly basis. While Amazon remains the company's biggest client, it has diversified its customer base and is not solely reliant on Amazon.

New customer acquisitions: In Q1, the company had anticipated closing deals with several large enterprise S&P 500 companies. Although these deals have been deferred to Q2, the company has successfully closed one major contract in Q2, which is expected to contribute an additional 10 per cent to its Q2 revenue compared with Q1. Moreover, the company is in advanced discussions with five enterprise customers, and it expects to finalize these agreements in Q2 and Q3 2024. The company is now exclusively focused on large enterprise contracts which it anticipates will have a major impact on its business in the near future.

Strategic initiatives

The company's strategic move to India in late 2023 has been instrumental in enhancing its cost structure and scalability. The investment in AI technology has not only streamlined its operations but also positioned the company at the forefront of innovation in the 3-D modelling industry. These initiatives are critical to the company's long-term growth and competitive edge.

Notable news from Q1 2024

New AI-powered 3-D model search tool

Earlier this month, the company announced it had gone live with its proprietary AI-powered 3-D model search engine. This advanced search engine integrates AI and computer vision technologies to refine and expedite the process of 3-D modelling. Through the application of this unique technology, the company is poised to enhance and quicken its internal 3-D model creation workflow significantly. Furthermore, there are plans to market this search engine externally, potentially leading to substantial increases in revenue and profits.

Expansion of AI tech team and office space

Nextech3D.AI has expanded its AI tech team and doubled its office space in Hyderabad, India, in response to increasing demand for its GPT (generative pretrained transformer) AI platform and 3-D model production. This expansion is a testament to the growing recognition of the company's technological capabilities and its commitment to meeting the rising market demand.

Establishment of new business unit targeting jewellery industry

On March 5, 2024, Nextech3D.AI established a new business unit led by a former META executive. This unit targets the jewellery industry with advanced GPT AI CAD (computer-aided design) 3-D models, blockchain technology and NFTs (non-fungible tokens). This strategic move is expected to open new revenue streams and further diversify the company's business portfolio.

Formation of AI incubator, and AI acquisition and development division

On March 12, 2024, Nextech3D.AI announced the formation of an AI incubator, and AI acquisition and development division. This division has the potential for a 2024 IPO (initial public offering) spinout, reflecting the company's commitment to fostering innovation and growth within the AI sector.

New patent issuance

The company was granted a patent for its technology that generates three-dimensional (3-D) models from two-dimensional (2-D) images. This patent is pivotal to Nextech3D.AI's artificial intelligence technology, strengthening its intellectual property portfolio and reinforcing its competitive edge in the 3-D model-making industry for e-commerce. This achievement validates the company's commitment to increasing shareholder value through investment in 3-D AI GPT patents and solutions.

In conclusion, while Q1 presented challenges in terms of revenue, the company's pro-active measures have substantially strengthened its profitability and market position. The company is optimistic about the future and is confident that the steps it has taken will yield significant benefits in the coming quarters.

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 (Web-based augmented reality) photorealistic models for Amazon and various other on-line retailers with patented 2-D/3-D technology. 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 shareholders.

Similarly, Nextech3D.AI accomplished its second spinout launching Toggle3D.AI, an AI-powered 3-D design studio aimed at competing with Adobe. The company retains a 44-per-cent stake with 13 million shares in Toggle3D.AI Corp.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.