Skip to main content Reports Unaudited Fiscal Year 2022 and Fourth Quarter 2022 Financial Results

3D modelling revenue increased +266% vs 2021

2022 technology service gross profit margin expands by 82% jumping from 51% in 2022 compared to 28% in 2021

TORONTO, ON / ACCESSWIRE / April 20, 2023 / (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 fourth quarter and fiscal year ended December 31, 2022.

Please join Evan Gappelberg, Chief Executive Officer and Andrew Chan, Chief Financial Officer today after the close today April 20, 2023 at 5:00 P.M where Nextech will host a conference call to discuss these financial results.

Evan Gappelberg - CEO Commentary:

"In 2022, our company placed significant emphasis on addressing the growing global demand for our 3D modelling and AR solutions designed for the ecommerce sector in web3.0. As we progress into 2023, we are seeing continued evidence of this trend, with our business remaining strong and experiencing growth. As previously announced in Q3 of 2022, Amazon became our customer, making them our largest enterprise customer for 3D model delivery in ecommerce. As Amazon is widely regarded as a leader in ecommerce, their decision to transition from 2D to 3D models serves as a strong indicator of the direction the industry is heading towards. We believe this highlights the staying power of 3D models, which will continue to drive the multi-decade, $5 trillion dollar ecommerce megatrend moving forward." He continued, "In the coming decade, 3D models will be a prerequisite for competing in various industries such as ecommerce, medicine, education, and events. At Nextech, we specialize in creating superior, cost-effective, and timely 3D models. We make them better, faster and cheaper than any other company I know of, and this positions us to be the leaders of this rapidly growing, trillion-dollar megatrend. While it was quite a challenge to get here, we are here now, and we are confident that we are optimally positioned to benefit from the rapid growth in demand for 3D models. From our vantage point we see nothing but blue sky opportunities."

Unaudited 2022 Q4 and 2022 Fiscal Year Financial Highlights

  • Total fiscal revenue of $11.5 million (including legacy ecommerce business)
  • Technology services revenue of $3.2 million
  • Legacy ecommerce business revenue of $8.3 million
  • 3D modelling revenue increased +266% compared to 2021 contributing $1.5 million in 2022
  • 2022 technology service gross profit margin expands by 82% jumping from 51% in 2022 compared to 28% in 2021 on $3.2 million revenue
  • Technology business contributed $1 million in Q4 revenue up 14% sequentially compared to Q3

(Expressed in Canadian dollars)

As at
December 31, 2022 December 31, 2021
Current assets
Cash & cash equivalents (Note 3)
$ 3,777,117 $ 7,237,296
Receivables (Note 4)
744,331 1,081,164
Deferred asset (Note 6)
256,818 -
Contract asset (Note 14)
332,197 386,202
Prepaid expenses (Note 5)
310,906 749,474
45,289 3,389,098
Non-current assets held for sale (Note 16)
501,188 -
5,967,846 12,843,234
Non-current assets
Equipment (Note 7)
278,463 377,242
Right-of-use asset (Note 8)
829,278 1,079,319
Intangible assets (Note 9)
3,307,399 6,419,934
Goodwill (Note 9)
6,755,892 8,790,529
Total assets
$ 17,138,878 $ 29,510,258
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities (Note 11)
$ 2,641,918 $ 2,759,017
Deferred revenue (Note 14)
437,746 609,001
Lease liability (Note 8)
222,250 290,357
Liabilities associated with assets held for sale (Note 16)
92,532 -
3,394,446 3,658,375
Non-current liabilities
Lease liability (Note 8)
582,586 786,755
Deferred income tax liability
(47,113 ) 712,215
Loan payable
- 90,896
Total liabilities
3,929,919 5,248,241
Shareholders' Equity
Share capital (Note 12)
83,271,706 70,570,760
12,754,708 12,649,994
Shareholder's equity attributable to Nextech shareholders
(84,991,503 ) (58,958,737 )
Non-controlling interest
2,174,048 -
13,208,959 24,262,017
Total liabilities and shareholders' equity
$ 17,138,878 $ 29,510,258

(Expressed in Canadian dollars)

Year ended Year ended
December 31, 2022 December 31, 2021
Revenue (Note 14)
$ 3,224,791 $ 6,689,849
Cost of sales (Note 15)
(1,593,076 ) (4,821,321 )
Gross profit
1,631,715 1,868,528
Operating expenses:
Sales and marketing (Note 15)
5,013,367 10,437,523
General and administrative (Note 15)
13,377,575 9,683,311
Research and development (Note 15)
3,892,208 6,609,471
22,283,150 26,730,305
Other expense (income)
Stock-based compensation (Note 12)
1,715,690 5,030,449
Amortization (Note 10)
2,680,258 2,050,147
Right of use amortization (Note 9)
76,905 44,861
Gain on liability
(381,019 ) (219,321 )
Gain on contingent consideration
- (1,573,308 )
Depreciation (Note 8)
95,152 114,733
Impairment of intangible assets (Note 10)
3,178,426 -
Foreign exchange gain
(1,422,668 ) (267,725 )
5,942,744 5,179,836
Loss before income taxes
(26,594,179 ) (30,041,613 )
Current income tax expense
(36,079 ) (28,512 )
Deferred income tax recovery
673,301 205,898
Net loss from operations
$ (25,956,957 ) $ (29,864,227 )
Income (loss) from discontinued operations (Note 17)
$ (1,341,111 ) $ (2,787,826 )
Other comprehensive loss
Exchange differences on translating foreign operations, continuing operations
(121,940 ) 183,137
Exchange differences on translating foreign operations, discontinued operations (Note 17)
(310,905 ) 43,715
Total comprehensive loss
$ (27,730,913 ) $ (32,425,201 )
Non-controlling interests
(438,201 ) -
Total comprehensive loss attributable to Nextech shareholders
$ (27,292,712 ) $ (32,425,201 )
Income (loss) per common share
Basic and diluted loss per common share, continuing operations
(0.26 ) (0.35 )
Basic and diluted loss per common share, discontinued operations
(0.02 ) (0.03 )
Weighted average number of common shares outstanding
Basic and diluted
100,201,691 83,888,487

Conference Call Details:

Title: Fiscal Year 2022 and Q4 2022 Financial Results

Call Date: Thursday, April 20, 2023

Time: 5:00 PM (GMT-04:00) Eastern Time (US and Canada)

Participant Toll-Free Dial-In Number: +1 (888) 330-2024

Participant Toll Dial-In Number: +1 (646) 960-0187

Earnings Call ID: 7778367

Webcast Attendee URL:

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

About (formally "Nextech AR Solutions Corp" or the "Company") (OTCQX: NEXCF) (CSE: NTAR) (FSE: EP2) is a Company that provides AI-powered 3D modeling solutions focusing on the e-commerce industry. Its breakthrough generative AI technology enables the creation of high-quality 3D models quickly and efficiently.'s suite of products, including patented AI-based technology for 3D model creation and 2D to 3D conversion, has positioned it as a leader in the industry. The company is already a preferred 3D model supplier for Amazon, representing a massive growth opportunity. With the increasing popularity of e-commerce globally,'s services are becoming more valuable, providing an excellent runway for ongoing growth. For investors looking to participate in the commercialization of AI technology, presents a unique investment opportunity.

The Company also 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 spun out its spatial computing platform, "ARway" as a stand alone public Company. retained a control ownership in with 13 million shares, or a 50% stake, and distributed 4 million shares to Shareholders. is currently listed on the Canadian Securities Exchange (CSE:ARWY), in USA on the (OTC: ARWYF) and Internationally on the Frankfurt Stock Exchange (FSE: E65). is disrupting the augmented reality wayfinding market with a no-code, no beacon spatial computing platform enabled by visual marker tracking.

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.

To learn more, please follow us on Twitter, YouTube, Instagram, LinkedIn, and Facebook, or visit our website:

For further information, please contact:

Investor Relations Contact
Lindsay Betts
866-ARITIZE (274-8493) Ext 7201
Evan Gappelberg
CEO and Director
866-ARITIZE (274-8493)

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.


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