from ARway Corporation (isin : CA04336A1049)
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 | ||||
Shareholders' Equity | ||||||
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 Basic and diluted | 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 | |||||||