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Nextech3D.ai Reports Fiscal Year 2023 and Fourth Quarter 2023 Audited Financial Results

Monday, 29 April 2024 04:29 PM

Nextech3D.ai

Topic:
Earnings

2023 Annual revenue growth of + 56%

2023 Annual revenue of $5 million

TORONTO, ON / ACCESSWIRE / April 29, 2024 / Nextech3D.AI (OTCQX:NEXCF)(CSE:NTAR)(FSE:EP2), a patented 2D-3D Generative AI-Powered 3D model supplier (Patent #11,948,248) for Amazon, Miele, P&G, Kohls, Wesfarmers Group "Bunnings" and other major e-commerce retailers reports its Fiscal Year 2023 and Fourth Quarter 2023 Financial Results the year ended December 31, 2023.

Please join Evan Gappelberg, Chief Executive Officer and Andrew Chan, Chief Financial Officer today after the close where Nextech3D.ai will host a conference call to discuss these financial results.

Evan Gappelberg - CEO Commentary:

Preliminary Annual 2023 Financial Highlights

2023 Annual revenue growth of + 56%

2023 Annual revenue of $5 million compared to $3.2 million in 2022

70,000 3D models created to date

2024 Outlook

New demand for 3D models expected to gain momentum throughout the year driven by large enterprise customers

2023-Cost cutting measures and pivot to India to reduce the company's burn in 2024 by as much as 75%

Q1 2024 Gross Profit margins estimated to be 50-55%

Q2 2024 Gross margin estimated to be 80%

Q2 Improved margins puts India 3D modeling business as a stand alone business unit projected to go cash flow positive

New 3D photography and AI driven product launches expected to drive additional revenue and growth in 2024

Multiple patents already issued in 2024 with additional patent issuances expected

Company is Launching Several Enhanced AI 3D Productivity Tools in Q2, Q3 2024

NexTech3D.AI Corporation
Statement of Financial Position
December 31, 2023

31-Dec-23 31-Dec-22
ASSETS
Current
Cash & cash equivalents
907,847 3,777,117
Receivables
357,398 744,331
Contract asset
51,320 589,015
Finance lease receivable on sublease CP
199,933 -
Prepaid expenses
294,471 310,906
Inventory
- 45,289
Non current assets held for sale
- 501,188
Total current assets
1,810,969 5,967,846

Equipment
325,633 278,463
Deferred consideration
206,850 -
Right of use asset
- 829,278
Finance lease receivable on sublease
642,983 -
Intangible assets
- 3,313,741
Goodwill
- 6,746,378
Total assets
2,986,435 17,135,706

LIABILITIES
Current
Accounts payable and accrued liabilities
3,531,460 2,641,918
Deferred revenue
342,192 437,746
Lease liability
143,722 222,250
Liabilities associated with assets held for sale
- 92,532
Total current liabilities
4,017,374 3,394,446

Lease liability - non current
469,624 582,586
Deferred tax liabilities
- 29,974
Total liabilities
4,486,998 4,007,006

Shareholders' Equity
Share capital
91,909,495 83,271,707
Reserves
14,166,972 12,754,706
Accumulated Other Comprehensive Income
678,143 827,101
Shareholder's equity attributable to Nextech shareholders
(112,211,223) (85,898,862)
Total common shareholders' equity
(5,456,613) 10,954,652
Non controlling interest
3,956,050 2,174,048
Total equity
(1,500,563) 13,128,700
Total liabilities and shareholders' equity
2,986,435 17,135,706

NexTech3D.AI Corporation
Statement of Loss and Comprehensive Loss
December 31, 2023

YTD
31-Dec-23 31-Dec-22
$ $
Revenue
5,033,202 3,224,791
Cost of sales
(3,586,162) (1,593,076)
Gross profit
1,447,040 1,631,715

Operating expenses:
Sales and marketing
4,546,502 5,013,367
General and administrative
9,362,610 13,377,575
Research and development
3,249,799 3,892,208
Stock based compensation
1,775,695 1,715,690
Amortization
2,105,689 2,655,652
Right of use amortization
55,728 76,905
Depreciation
87,824 122,930
Operating profit (loss)
(19,736,807) (25,222,612)

Other income (expense):
Gain on sublease recognition
120,626 -
Loss on asset disposal
(85,679) -
Gain on liability
- 381,019
Impairment of intangible assets and goodwill
(7,575,263) (476,113)
Foreign exchange gain (loss)
(14,393) 1,345,593
Profit (Loss) before income taxes
(27,291,516) (23,972,113)

Current income tax expense
- (34,937)
Deferred income tax recovery
29,974 672,148
Net income (loss) from continuing operations
(27,261,542) (23,334,902)

Income (loss) from discontinued operations
(452,814) (4,043,424)
Net loss
(27,714,356) (27,378,326)

Other comprehensive income (loss)
Exchange differences on translating foreign operations, continuing operations
(148,958) (432,845)
Comprehensive income (loss)
(27,863,314) (27,811,171)

Net loss from C/O attributed to:
Parent
(25,109,547) (22,896,701)
Non controlling interest - PL
(2,151,995) (438,201)

Net loss from D/O attributed to:
Parent
(452,814) (4,043,424)
Non controlling interest - PL
- -

Comprehensive loss attributed to:
Parent
(25,711,319) (27,372,970)
Non controlling interest
(2,151,995) (438,201)


Loss per share from C/O - basic and diluted
(0.22) (0.24)


Loss per share from D/O - basic and diluted
(0.00) (0.04)

Weighted average number of common shares outstanding
Basic and diluted
114,085,494 100,201,691

NexTech3D.AI Corporation
Statement of Cash Flow
December 31, 2023

YTD
31-Dec-23 31-Dec-22
Operating activities:
Net loss
(27,714,356) (27,378,326)
Adjustment for:
Interest income from sublease
(39,903) -
Interest expense from lease
30,217 28,668
Stock based compensation
1,775,695 1,715,690
Amortization of intangible assets
2,105,689 2,655,652
Amortization of ROU
55,728 261,101
Depreciation of property and equipment
87,824 143,567
Gain on sublease recognition
(120,626) -
Loss on asset disposal
85,679 -
Gain on short-term investment
- (381,019)
Impairment of intangible assets & goodwill
7,759,360 3,178,426
Expenses paid by shares
648,891 1,917,837
Loss on PET disposal
173,534 -
Income tax expense (recovery)
- -
Changes in non-cash working capital balances
Receivables
386,933 269,873
Contract asset
537,695 (202,813)
Prepaid expenses
16,435 408,743
Inventory
45,289 2,954,342
Accounts payable and accrued liabilities
917,814 (24,574)
Deferred revenue
(95,554) (171,255)
Deferred tax liability
- (673,290)
Total operating cash flow
(13,343,656) (15,297,378)

Cashflows from investing activities
Purchase of equipment
(227,250) (101,784)
Payments received from sublease
66,554 -
Net cash provided by (used in) investing activities, continuing operations
(160,696) (101,784)

Cashflows from financing activities
NTAR - Net proceeds from private placements
5,726,654 8,890,349
NTAR - Proceeds from Employee Pay Program
2,269,704 2,496,628
Proceeds from securities issuances to NCI
2,813,107 1,657,354
Repayment of loan
- (90,896)
Payments of lease liability
(203,762) (388,804)
Net cash provided by (used in) financing activities, continuing operations
10,605,703 12,564,631

Effects of foreign exchange on cash
29,379 (616,272)
Change in cash during the period
(2,898,649) (2,834,531)
Cash, beginning of period
3,777,117 7,237,296
Cash, end of period, continuing operations
907,847 3,786,493

Cash, end of period, continuing operations
907,847 3,777,117
Cash, end of period, discontinuing operations
- 9,376

Taxes paid
- 27,005
Interest paid
30,217 30,910
Cash interest received
121,122 108,390

Conference Call Details:

Title: Nextech3D.ai Full Year 2023 and Q4 2023 Financial Results
Call Date: Monday, April 29, 2024
Time: 05:00 PM (GMT-04:00) Eastern Time (US and Canada)

Participant Details:

North America Toll-Free: (888) 330-2024
North America Toll: (646) 960-0187
International Toll: +1(646) 960-0187
Conference ID: 7778367
Webcast Attendee URL: https://events.q4inc.com/attendee/810085104

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

Sign up for Investor News and Info - Click Here

For further information, please contact:

Investor Relations Contact

Julia Viola
[email protected]

Nextech3D.ai
Evan Gappelberg
CEO and Director
866-ARITIZE (274-8493)

About Nextech3D.ai
Nextech3D.ai or the "Company," (OTCQX:NEXCF)(CSE:NTAR)(FSE:1SS), 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 with patented 2D-3D technology. 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.

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

Topic:
Earnings
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