NTAR:CC - Nextech3D.ai

?Overview

Nextech3D.ai (CSE: NTAR , OTCQX:NEXCF, FSE:EP2) is a diversified technology company developing innovative 3D and augmented reality (AR) modeling solutions for e-commerce companies. The company’s generative artificial intelligence technology sets it apart from other 3D model suppliers, allowing it to provide services to significant enterprises like Amazon and Target.

The 3D modeling market size is projected to grow from US$2.3 billion in 2021 to US$6.33 billion by 2028 , an impressive CAGR of 15.49 percent during the forecast period. This projection is primarily driven by the utility of 3D and AR technology to aid in e-commerce sales, manufacturing and product development.

Nextech develops and offers four technologies operating as individual companies to meet the specific needs of modern businesses:

1. ARitize3D provides an AI-powered 3D model creation platform that operates at scale for e-commerce companies.
2. ARway is an AI-powered augmented reality experience platform for indoor spaces with a disruptive no-code, no beacon spatial computing solution with centimeter precision
3. Toggle3D is an AI powered SaaS platform enabling the conversion, texturing, customizing and sharing of the highest quality 3D models at scale, using CAD files
4. Nextech Event Solutions is a cloud-based event technology and management software solution.

3D and AR technology are powerful innovations to technologies we’ve relied on for years, including navigation systems, scanners, sensors and GPS satellite components. AR technology works with devices consumers already own as long as it has a camera, such as smartphones, instead of virtual reality (VR), which requires a specialized device.

Nextech3D.ai has experienced rapid growth in its user base and revenue. The company recently announced that 3D modeling revenue increased +266 percent compared to 2021 , as well as a 963-percent increase in users for its Toggle3D platform since its launch in Jan 2023.

?Company Highlights

Driving shareholder value by Commercializing Disruptive AI, 3D, AR, ML Technologies

• The company develops or acquires what it believes are disruptive technologies and once commercialized, spins them out as stand-alone public companies issuing a stock dividend to shareholders while retaining a significant ownership stake in the public spin-out.
• On October 26, 2022, Nextech3D.ai spun out its spatial computing platform, “ARway” as a stand-alone public company. Nextech3D.ai retained a control ownership in ARway Corp. with 13 million shares, or a 50 percent stake, and distributed 4 million shares to Nextech AR Shareholders.
• On December 14, 2022, Nextech announced its second spinout of Toggle3D, an AI-powered 3D design studio to compete with Adobe. Toggle3D is expected to be public in the first half of 2023.

Diversified Technology Company

• Nextech3D.ai is a diversified augmented reality, AI technology company that leverages proprietary artificial intelligence (AI) to create 3D experiences for the metaverse.
• The company’s unique AI technology sets Nextech apart from its competitors, allowing it to earn contracts from big companies like Target and Amazon.
• The 3D modeling market is expected to reach US$6.33 billion by 2028, growing by a CAGR of 15.49 percent from US$2.3 billion in 2021.
• Nextech3D.ai offers four unique technologies (ARitize3D, ARway, Toggle3D, Nextech Event Solutions) to cater to the needs of enterprise companies
• 3D and AR advance other technologies we’ve come to depend on, including GPS components, scanners and navigation systems.
• AR does not require any investment from consumers to put to use, and instead works with any device equipped with a camera.
• Nextech has grown rapidly in recent years, reaching US$10.3 million in 2022, increasing the 3D modeling business by 266 percent from 2021 and recently achieving a 963-percent increase in users for its Toggle3D platform since its launch in Jan 2023.

Leadership Team

• CEO Evan Gappelberg has a positive track record of creating shareholder value for over 20 years, and is the single largest shareholder of Nextech3D.ai with a 10 percent stake
• An experienced team of technology innovators leads Nextech3D.ai to further develop and market its unique solutions.

?Key Technologies

ARitize3D

ARitize3D is a solution that utilizes artificial intelligence to turn 2D models and CAD files into 3D models that can be viewed in AR. The technology gives companies a platform to enhance their e-commerce enterprise that operates at scale.

Highlights:

• Existing Enterprise Clients : Nextech has industry-leading e-commerce enterprises using its ARitize3D platform, including Amazon, Kohl’s and NAPA.
• Crucial Competitive Advantage : The usage of AI within the ARitize3D platform is a unique offering that disrupts the existing 3D modeling market by providing reduced costs, improved quality and better scalability.
• AI Development Ongoing : The field of AI is rapidly advancing, and Nextech continues to stay at the forefront of its development. The ARitize3D platform is powerful in its current form and the company continues to leverage advancements in AI to optimize scalability.

ARway

ARway is an AI-powered platform that provides augmented reality experiences for indoor spaces. The platform allows users to easily create experiences for navigation, tours, information sharing, notifications, advertising, and gamification. ARway leverages the power of mobile devices to create environments that can improve visitor experience, boost employee productivity, increase engagement, create new advertising space, and boost revenues. ARway was acquired in 2021 as a spatial computing platform and has since been further developed by Nextech3D.ai.

Highlights:

• First Mover Advantage in Spatial Computing : ARway gives companies advanced capabilities to provide indoor navigation for events or other large spaces to create a powerful AR experience. Existing clients include the Dubai Mall, Restaurants Canada, and Saudi German Health Group and others.
• No-code and Hardware-free Platform : Companies can adopt ARway without installing hardware, and investing in development or infrastructure management, which can cost hundreds of thousands of dollars.
• Rapid Adoption Driven by Demand for AR : Consumers are starting to understand and experience the benefits of AR. This growing demand powers the continual growth of ARway as more organizations wish to accommodate consumer demand.

Toggle3D

Toggle3D is a self-serve platform enabling the conversion, texturing, customizing and sharing of the highest quality 3D models at scale, using CAD files. The platform allows users to rapidly create new models without learning in-depth design tools.

Highlights:

• Significant Competitive Advantage : Toggle3D reduces or eliminates the learning curve in creating 3D models compared to legacy software, such as Adobe. The platform's web-based and collaborative approach is a unique new way for businesses to approach 3D modeling.
• Spin-out Planned for 2023 : Nextech plans to spin out Toggle3D in Q2 2023 into its own public company, the second Nextech product to undergo this process. The company will pay dividends to shareholders of record when this happens.
• Disrupting Existing 3D Modeling Industry : The company’s breakthrough AI and machine learning platform allows manufacturers and design industries to sidestep the training and time-intensive processes traditionally used for 3D modeling and rapidly design and improve new models.

Nextech Event Solutions

The company’s cloud-based event management solution strives to transform the US$50-billion event industry. The Nextech Event Solutions platform is already generating revenue that is expected to grow throughout 2023.

Highlights:

• Comprehensive End-to-end Management : The platform covers all aspects of event management, including generating interactive floorplans, handling ticket sales, AR activations, booth sales, indoor wayfinding, and a companion mobile app.
• Integrating Technologies to Transform Event Planning with AR : The company’s platform is transforming the established event planning industry by introducing AR experiences and integrating other Nextech technologies, such as ARway and ARitize3D.

?Management Team

Evan Gappelberg - Founder and CEO

Evan Gappelberg attained his capital market expertise in the 1990s while working on Wall Street funding IPOs. Notably he was instrumental in funding Take Two Interactive, which has a recent valuation of about $20 billion (NASDAQ:TTWO). Gappelberg is an accomplished entrepreneur with extensive experience in creating, funding and running pioneering start-ups. He has global business experience both as a hands-on CEO and as a public company CEO.

He started as an entrepreneur while on Wall Street where he was co-founder and CEO of EG Products, which he self-funded. While CEO, he went to China to set up manufacturing for the first LED light-up toy which he patented, imported and distributed globally. He secured license deals from Disney, Universal Studios and others while he built a retail national sales channel.

He was also co-founder and CEO of an app development company which created and published over 200 successful apps for both the Apple iTunes store and Google Play store.

He is an accomplished entrepreneur with an expertise in creating, funding and running start-ups, and he has extensive experience both as a hands-on operating executive and well as a public market professional.

Andrew Chan - Chief Financial Officer

Andrew Chan has over 20 years of finance and accounting experience with half of his career serving high-growth, public technology companies. After over a decade in public accounting (including nine years at Ernst & Young), Chan moved into senior finance positions with Real Matters Inc. (TSX: REAL) and goeasy ltd. (TSX: GSY) – both offering technology solutions for the financial services industry – where he was involved in several financings, transactions and acquisitions with an aggregate value of well over a billion dollars. Chan has successfully integrated and led finance-related functional groups including treasury and banking, corporate reporting and budgeting and was instrumental in forging strong relationships with business unit leaders to enable successful revenue forecasting and delivery.

Reza Davariar - Chief Operating Officer

Reza Davariar is an experienced business strategist and cross-organizational leader with more than 20 years of professional experience across strategy consulting, business operations and sales management. Davariar has a broad range of experience working with executive leadership, reducing internal costs, and establishing methodologies to boost customer satisfaction through successful operational performances, CRM initiatives and KPI targeting.