Q2 delivered 30% Sequential growth in Annual Recurring Revenue to almost $1 million
Q2 showed a record 40% growth in Web3.0 3D modeling revenue
Record Q2 Annual Recurring Revenue And Repeat Revenue at $1,566,000
Q2 cash burn decreased to $1 million per month, the Company expects an expense reduction of $500K/month in the 2nd half of 2022
TORONTO, ON Canada – August 18, 2022 – Nextech AR Solutions Corp. (“Nextech”or the “Company”) (OTCQB: NEXCF) (CSE: NTAR) (FSE: N29) reports its financial and operating results for the second quarter 2022 ending June 30, 2022.
Subsequently, Nextech will host a conference call to discuss the results today, August 18, 2022 at 5:00 P.M. Eastern Time. Please join Evan Gappelberg, Chief Executive Officer and Andrew Chan, Chief Financial Officer to discuss these financial and operating results.
2022 Q2 Financial Highlights:
- 30% Q2 sequential growth in ARR to almost $1,000,000
- Record Q2 Annual Recurring Revenue And Repeat Revenue at $1,566,000
- Decreased cash burn to $1 million/month in Q2 2022, in Q3/Q4 expecting the burn to be $500K/month due to shares for services program.
- 40% Q2 Sequential growth in Web3.0 3D modeling revenue
- Two six figure deals in the first half of 2022
- With the newly implemented shares for services plan in place, the Company will be reducing its monthly burn from about $1mill per month to approximately $500,000/ month extending the cash runway for at least 12 months.
- The wind-down of eCommerce business is expected to add $1-2 million in cash to the Company's cash balance and is expected to be completed in Q3/Q4 2022
- Onboarding of major new customers in Q3 is expected to show a meaningful ramp-up in Q3/Q4 Web 3.0 3D modeling revenue
- ARway spinout and listing on the Canadian Securities Exchange (CSE) is expected to happen in Q3, 2002 and will provide a stock dividend of 4,000,000 shares for all Nextech AR shareholders on a pro-rata basis.
Management changes effective as of 8/19/2022:
Paul Duffy will be stepping down from the board of directors of Nextech AR and transitioning from President to the Chief Metaverse Officer for ARway. We sincerely thank Paul for all his dedication and hard work as both a board member and President at Nextech AR and look forward to his new and exciting role at ARway, where we are confident that he will be adding tremendous shareholder value.
Evan Gappelberg will remain CEO and will be taking on the additional role of Chairman of the Board for Nextech AR.
Ori Inbar is leaving his role as a director of Nextech to pursue other activities in the Metaverse and we thank him for his contributions and wish him all the best. The Company currently has no plans to replace him on the board.
Conference Call Details:
Please join Evan Gappelberg, Chief Executive Officer and Andrew Chan, Chief Financial Officer to discuss these financial and operating results, followed by a question and answer period.
Title: Nextech AR Solutions Corp. Announces Second Quarter 2022 Earnings & Conference Call Date: Thursday August 18, 2022
Time: 05:00 PM (GMT-04:00) Eastern Time (US and Canada)
Toll Free Dial-In Number: 1 (888) 330-2024
International Dial-In Number: 1 (646) 960-0187
Conference ID: 7778367
Webcast Link: https://events.q4inc.com/attendee/572595313
For those unable to join the live event, a recording of the presentation will be posted on the Company's investor relations website.
On behalf of the Board of Nextech AR Solutions Corp.
CEO and Director
For further information, please contact:
Investor Relations Contact
866-ARITIZE (274-8493) Ext 7201
About Nextech AR
Nextech AR Solutions is the engine accelerating the growth of the metaverse. Using breakthrough AI, Nextech AR is able to quickly, easily and affordably ARitize (transform) vast quantities and varieties of existing assets at scale making products, people and places ready for interactive 3D use, giving creators at every level all the essential tools they need to build out their digital AR vision in the metaverse. Our platform-agnostic tools allow brands, educators, students, manufacturers, creators, and technologists to create immersive, interactive and the most photo-realistic 3D assets and digital environments, compose AR experiences, and publish them omnichannel. With a full suite of end-to-end AR solutions in 3D Commerce, Education, Events, and Industrial Manufacturing, Nextech AR is in a unique position to meet the needs of the world’s biggest brands and all metaverse contributors.
Nextech funds the development of its AR and metaverse growth initiatives through its e-Commerce platforms, which currently generate most of its revenue. Nextech's e-commerce platforms include vacuumcleanermarket.com (“VCM”), infinitepetlife.com (“IPL”) and Trulyfesupplements.com (“TruLyfe”). VCM and product sales of residential vacuums, supplies and parts, and small home appliances sold on Amazon. These e-commerce platforms serve as an incubator for developing and testing Nextech's leading-edge AR, AI and machine learning applications for powering next-generation e-commerce technology.
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.