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Nextech3D.ai Reports 2023 Third Quarter Earnings
YTD Revenue up 97% Compared to Same Period Last Year
TORONTO, ON / ACCESSWIRE / November 29 , 2023 / Nextech3D.AI (OTCQX:NEXCF)(CSE:NTAR)(FSE:EP2), a Generative AI-Powered 3D model supplier for Amazon, P&G, Kohls and other major e-commerce retailers is pleased to report its financial and operating results for its third quarter ended September 30, 2023.
Please join Evan Gappelberg, Chief Executive Officer and Andrew Chan, Chief Financial Officer after the close today November 29, 2023 at 5:00 P.M. ET where Nextech3D.ai will host a conference call to discuss these financial results.
Evan Gappelberg - CEO Commentary
"We continue to build towards our future with solid year over year growth of +97% across our business. While I'm personally disappointed that we didn't see Amazon open seller central in Q3 and consequently our revenue spike, I'm also confident that it is in motion and likely to happen in Q1, 2024." He continued, "In the fast-evolving world of technology, adaptability is key to sustained success. Our investment in our AI library of 3D meshes or parts is setting us up for success in 2024. We are on the cusp of a significant breakthrough that promises to have a materially positive impact on our business in 2024 and beyond. As AI and 3D models continue to shape the future for e-commerce, we have positioned ourselves at the forefront of this transformative wave. We are ready to see results and capitalize on our AI capabilities in a pivotal way starting in Q1 2024."
Highlights - 9 Months Ending Ending September 30, 2023:
- Year to date revenue +97% compared to same period last year;
- Q3 revenue +30% compared to same period last year;
- Gross profit year to date +18% compared to same period last year
- Delivery of 60,000+ 3D models to date
Condensed Consolidated Interim Statements of Financial Position
| 30-Sep-23 | 31-Dec-22 | |||||||
ASSETS | ||||||||
Current | ||||||||
Cash & cash equivalents | 2,988,700 | 3,777,117 | ||||||
Receivables | 102,749 | 744,331 | ||||||
Deferred asset | 91,168 | 256,818 | ||||||
Contract asset | 218,100 | 332,197 | ||||||
Prepaid expenses | 407,591 | 310,906 | ||||||
Inventory | - | 45,289 | ||||||
Non current assets held for sale | - | 501,188 | ||||||
Total current assets | 3,808,308 | 5,967,846 | ||||||
Equipment | 291,637 | 278,463 | ||||||
Deferred consideration | 206,850 | - | ||||||
Right of use asset | - | 829,278 | ||||||
Finance lease receivable on sublease | 898,578 | - | ||||||
Intangible assets | 1,688,111 | 3,313,741 | ||||||
Goodwill | 6,560,040 | 6,746,378 | ||||||
Total assets | 13,453,524 | 17,135,706 | ||||||
LIABILITIES | ||||||||
Current | ||||||||
Accounts payable and accrued liabilities | 3,484,625 | 2,641,918 | ||||||
Factoring liability | 505,847 | - | ||||||
Deferred revenue | 299,222 | 437,746 | ||||||
Lease liability | 148,037 | 222,250 | ||||||
Liabilities associated with assets held for sale | - | 92,532 | ||||||
Total current liabilities | 4,437,731 | 3,394,446 | ||||||
Lease liability - non current | 516,511 | 582,586 | ||||||
Deferred tax liabilities | 12,000 | 29,974 | ||||||
Total liabilities | 4,966,242 | 4,007,006 | ||||||
Shareholders' Equity | ||||||||
Share capital | 90,530,169 | 83,271,707 | ||||||
Reserves | 16,234,630 | 12,754,706 | ||||||
Accumulated Other Comprehensive Income | 883,405 | 827,101 | ||||||
Shareholder's equity attributable to Nextech shareholders | (102,334,982 | ) | (85,898,862 | ) | ||||
Total common shareholders' equity | 5,313,222 | 10,954,652 | ||||||
Non controlling interest | 3,174,060 | 2,174,048 | ||||||
Total equity | 8,487,282 | 13,128,700 | ||||||
Total liabilities and shareholders' equity | 13,453,524 | 17,135,706 | ||||||
Condensed Consolidated Interim Statements of Comprehensive Loss
| QTD | YTD | |||||||||||||||
| 30-Sep-23 | 30-Sep-22 | 30-Sep-23 | 30-Sep-22 | |||||||||||||
| $ | $ | $ | $ | |||||||||||||
Revenue | 1,178,377 | 908,227 | 3,882,804 | 1,970,383 | ||||||||||||
Cost of sales | (1,035,692 | ) | (348,447 | ) | (2,678,033 | ) | (950,233 | ) | ||||||||
Gross profit | 142,685 | 559,780 | 1,204,771 | 1,020,150 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 867,586 | 1,177,539 | 3,876,879 | 4,079,251 | ||||||||||||
General and administrative | 1,992,096 | 2,112,681 | 7,376,579 | 9,075,983 | ||||||||||||
Research and development | 1,063,667 | 1,157,408 | 2,820,833 | 3,064,874 | ||||||||||||
Stock based compensation | 1,305,299 | 311,301 | 3,560,441 | 1,768,392 | ||||||||||||
Amortization | 565,064 | 597,354 | 1,595,817 | 2,076,161 | ||||||||||||
Right of use amortization | - | 166,023 | 55,728 | 204,476 | ||||||||||||
Depreciation | 19,580 | 47,943 | 64,457 | 111,182 | ||||||||||||
Operating profit (loss) | (5,670,607 | ) | (5,010,469 | ) | (18,145,963 | ) | (19,360,169 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Gain on sublease recognition | - | - | 120,626 | - | ||||||||||||
Loss on asset disposal | - | - | (85,679 | ) | - | |||||||||||
Loss (gain) on short-term investments | - | 90,744 | - | 90,744 | ||||||||||||
Foreign exchange gain (loss) | 519,944 | 529,564 | (43,542 | ) | 931,587 | |||||||||||
Profit (Loss) before income taxes | (5,150,663 | ) | (4,390,161 | ) | (18,154,558 | ) | (18,337,838 | ) | ||||||||
Current income tax expense | - | (7,128 | ) | (18,039 | ) | (21,384 | ) | |||||||||
Deferred income tax recovery | (203,306 | ) | 126,777 | - | 387,562 | |||||||||||
Net income (loss) from continuing operations | (5,353,969 | ) | (4,270,512 | ) | (18,172,597 | ) | (17,971,660 | ) | ||||||||
Income (loss) from discontinued operations | (108,451 | ) | (133,252 | ) | (452,697 | ) | (3,129,201 | ) | ||||||||
Net loss | (5,462,420 | ) | (4,403,764 | ) | (18,625,294 | ) | (21,100,861 | ) | ||||||||