Q1 2022 Nextech Ar Solutions Corp Earnings Call

Good evening, ladies and gentlemen, and welcome everyone to the next Tech a our solutions Corp, 2022 first quarter results conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session and instructions will be provided at that time for you to queue up for a <unk>.

Welcome everyone to the next tech AR Solutions Corp 2022 First Quarter Results Conference call. All lines have been placed on mute to prevent any background noise. After the speakers remarks there will be a question and answer session and instructions will be provided at that time for you to queue up for a question.

I'd like to remind everyone that this call is being recorded today Monday may 16th 2022, I would now like to turn the conference over to MS. Julia Viola at next Tech Air Solutions Corp. Please go ahead ma'am.

I'd like to remind everyone that this call is being recorded today, Monday, May 16, 2022. I would now like to turn the conference over to Ms. Julia Viola at Nextech AR Solutions Corp. Please go ahead, ma'am. Turn your

Hello and welcome to the next tech Q1 2022 earnings call. With me on the call are Evan Gaffelberg, Chief Executive Officer, and Andrew Chen, Chief Financial Officer.

Hello, and welcome to the next 10-Q, one 2022 earnings call with me on the call our oven Gaffle Berg, Chief Executive Officer, and Andrew Chen Chief Financial Officer.

Today, after Marketscloth's Next Tech AR Solutions Corp released its financial results for the first quarter and at March 31, 2022. A copy of the earnings disclosure is available on our website and on Cedar. Some of the information discussed on this call is based on information as of today, May 16, 2022, and contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those set forth and set statements.

Today after market close next Tech Solutions Corp, released its financial results for the first quarter ended March 31 2022.

A copy of the earnings disclosure is available on our website and on SEDAR.

Some of the information discussed on this call is based on information as of today May 16, 2022 and contains forward looking statements that involve risks and uncertainties.

Actual results may differ materially from those set forth in such statements.

For discussion of these risks and uncertainties, you should review the forward-looking statements disclosure in the earnings press release, as well as in our Cedar filing.

For a discussion of these risks and uncertainties you should review the forward looking statements disclosure in the earnings press release as well as in our SEDAR filings.

During this call, we will discuss IFRS results and key performance indicators. A detailed description of our key performance indicators is available in our mDNA, which can be found on CDAR.

During this call we will discuss I F. R. S results and key performance indicators I detailed description of our key performance indicators is available in our MD&A, which can be found on SEDAR.

Neither this call nor the webcast archives may be recorded or otherwise reproduced or distributed without prior written permission from NEXTC.

Neither this call nor the webcast archive may be recorded or otherwise reproduced or distributed without prior written permission permission from next tech.

To begin our call, Evan Gappelberg CEO will discuss 2022 Q1 highlights as well as recent business developments followed by Andrew Chan, CFO , who will review our financial results and outlook. Finally, Evan will make closing remarks before opening up the line for a question and answer period. I'll now turn the call over to next KER Solution CEO and founder Evan Gappelberg.

To begin our call Evan GAAP Holberg CEO will discuss 2022 Q1 highlights as well as recent business developments, followed by Andrew Chen CFO , who will review our financial results and outlook finally, Aaron will make closing remarks before opening up the line for a question and answer period.

I'll now turn the call over to next stickier solutions, CEO and founder Evan Castleberry.

Thank you Julia.

Hello, everyone, and thank you for joining us. As usual, I want to thank all of our NexTech employees located throughout the globe for their dedication and hard work. NexTech success.

Hello, everyone and thank you for joining us as usual I want to thank all of our index Tech employees located throughout the globe for their dedication and hard work <unk> success.

to this point and into the future is only made possible through their continued commitment and their striving for excellence. In 20 minutes,

To this point and into the future is only made possible through their continued commitment and theater striving for excellence in 2021.

And into Q1 2022, we have emphasized the accelerating adoption and global demand of our augmented reality and 3D model solutions for the metaverse.

And into Q1 2022.

We have emphasized the accelerating adoption in global demand of our augmented reality at three D model solutions for the meta versus.

This is our key growth driver. This is the main business as we move forward in 2022 and beyond.

This is our key growth driver. This is the main business as we move forward in 2022 and beyond.

This has been reinforced over and over again through the multitude of new deals that we have announced during Q1 of 2022. Our ARP.

This has been reinforced over and over again through the multitude of new deals that we have announced during Q1 of 2022.

Our <unk> e-commerce.

is winning. We are signing up 3D model deals regularly across various industries and various product categories. The most prominent being furniture sports.

Winning we are signing up three D model deals.

Regularly across various industries and various product categories. The most prominent being furniture spa.

Sports equipment.

Artwork, appliances, lighting, auto parts and more. Basically, all the e-commerce ecosystem is signing up with 3D models. These deals that we're signing, the pace that we're signing deals.

Artwork appliances lighting auto parts are more basically all the E. Commerce ecosystem is signing up with three D models. These deals that we're signing the pace that we're signing deals has never been experienced before by next tech.

has never been experienced before by Nextech. And we believe that this is representative of a rapidly increasing demand globally for 3D models and ultimately augmented reality. We believe strongly that this will accelerate throughout 2022 and beyond. And as mentioned on our last earnings call,

And we believe that this is representative of a rapidly increasing demand globally for three D models and ultimately augmented reality, we believe strongly that this will accelerate throughout 2022 and beyond.

As mentioned on our last earnings call.

Our company's mission is to build the first vertically integrated

Our company's mission is to build the first vertically integrated.

Artificial Intelligence powered 3D model factory for the Metaverse. Throughout 2022 and the next several years, we're going to strive to accomplish this highly ambitious goal, but a painable goal.

Artificial intelligence powered three D model factory for the meta burst throughout 2022 and the next several years, we're going to strive to accomplish this highly an ambitious goal, but attainable goal.

is we transition our company into a SaaS business.

As we transition our company into a SaaS business.

and a 3D modeling factory for the Metaverse. The demand for 3D models is which driving our business. We are experiencing a tremendous amount of demand in the marketplace.

And three D modeling fab.

Factory for the meta versus the demand for three D models is what's driving our business. We are experiencing a tremendous amount of demand in the marketplace and it's evidenced not just by next tech, but by other investments that are happening in the east.

And it's evidence not just by next tech, but by other investments that are happening in the ecosystem. We are not alone in our beliefs that 3D models and the metaverse is the future of technology. Last year in the fourth quarter, it was a title wave of investments from venture capital into the VR and AR space.

<unk> system, we are not alone in our beliefs that three D models and the meta versus is the future of technology last year in the fourth quarter. It was.

A tidal wave of investments from venture capital into the VR and AR space, nearly one $9 billion of venture capital world into startups in the virtual and augmented reality software and hardware space more than any other quarter before.

Nearly $1.9 billion of venture capital rolled into startup.

in the virtual and augmented reality software and hardware space more than any other quarter before.

<unk>.

And the last year was about almost $4 billion going into the VC space. VC money has accelerated their investing is the point.

And last year.

Was about almost $4 billion going into the PC space VC money has accelerated their investing is the point.

In the future and Thats, what they invested they invest in the future they don't invest in.

And that's what they invest in. They invest in the future. They don't invest in things that are yesterday's technology. They invest in tomorrow. The future is the metaverse. And we are a metaverse company. Seven of the top 10 rounds last year occurred in the fourth quarter. The fundamental tech trend is here.

And things that that are yesterday's technology. They invested tomorrow. The future is the meta versus and we are a meta versus company seven of the top 10 rounds last year occurred in the fourth quarter.

Fundamental tech trend is here.

virtual worlds. If you look at the hundreds of billions of dollars of investors capital, they're positioning themselves now either by investing in big tech.

For virtual worlds, if you look at the hundreds of billions of dollars of investors' capital, they're positioning themselves now either by investing in big Tex.

or by snapping up smaller startups. Snap, but vertebrae, epic games, but sketch fab, getty images, but turbo squid, niantic, but HWAL, Qualcomm, Bloc, WikiToo. These are all smaller players, similar in size and scale to next tech that are getting picked off. One by one by one.

Or by snapping up smaller.

Startups snapped, but vertebrae epic games bought sketchpad Getty images bought turbo squid Mantech bought H walk Qualcomm bought wiki to these are all smaller players similar in size and scale to next tech that are getting picked off.

One by one by one.

The on ramp to the Metaverse 3.0 is 3D model.

The on ramp to the meta versus three point O is three D models.

And I believe that we are in the midst of the fourth industrial revolution, which is now being hailed as the Metaverse. The Metaverse is being led by AR, VR, AI, NFT, 3D models, e-commerce, and of course the 5G network. And it's all converging and becoming increasingly ubiquitous for e-commerce, advertising and entertainment. We're seeing this play out in the real world every day.

And I believe that we are in the midst of the fourth industrial Revolution, which is now being hailed as the meta versus the meta versus being led by a R. V. R. A I N F. T. Three D models E Commerce and of course, the <unk> network, and it's all converging and becoming increasingly.

Ubiquitous for E Commerce advertising and entertainment, we're seeing this play out in the real world everyday.

The convergence that we're seeing is stimulating a rapid market adoption environment similar to the rapid market adoption of the internet in the 1990s. And it drove...

Convergence that we're seeing is stimulated stimulating a rapid market adoption environment similar similar to the rapid market adoption of the internet in the 19 nineties and it drove the.

The creation of trillion dollar industries almost overnight. The metaverse market is what next waiting for for four years to emerge.

The creation of trillion industries almost overnight the meta versus market is what next tech what I've been waiting for for four years to emerge and it is a market that we are uniquely positioned to capitalize on the adoption is already underway, but it's still very early.

And it is a market that we are uniquely positioned to capitalize on. The adoption is already underway, but it's still very early, which is

Which is the opportunity.

It's very early and that is the opportunity. It's not as early as it was in 2018 when there was no adoption underway. The adoption is happening, we are in the first inning.

It's very early and that is the opportunity it's not as early as it was in 2018. When there was no adoption underway. The adoption is happening we are in the first inning.

My belief is 3D models is the gateway to the metaverse. We, next tech, are now entering a new phase of major growth opportunities.

My belief is three D models is the gateway to the meta versus we next tech are now entering a new phase of major growth opportunity.

We at Nextech are benefiting from the paradigm shift.

At next tech are benefiting from the paradigm shift in the way people shop work travel meet learn and our entertain that paradigm shift is shifting to our business. It's shifting to the products that we sell the products that we.

in the way people shop, work, travel, meet, learn, and are entertained. That paradigm shift is shifting.

to our business. It's shifting to the products that we sell, the products that we're positioned for. Again, this is just the first inning.

We're positioned for again. This is just the first inning of a mega trend and I've never been as excited about any opportunity in my life lifetime at my feeling is is that.

of a mega trend. And I've never been as excited about any opportunity in my lifetime. And my feeling is, is that

By the time the the masses wake up to this idea, it's going to already be too late.

By the time the masses wake up to this idea, it's going to already be too late.

We're tapping into this trillion dollar opportunity by being the 3D model supplier for the metaverse. Essentially the gateway product. We're not competing with Facebook, we're not competing with Microsoft, we're not competing with Google, we're not competing with Amazon. We're enabling them to be even more successful.

We're tapping into this trillion dollar opportunity by being the three D model supplier for the meta versus essentially gateway product, we're not competing with Facebook, we're not competing with Microsoft we're not competing with Google, we're not competing with Amazon.

Enabling them to be even more successful.

And they love us for.

e-commerce is an enormous industry globally. It's a five trillion dollar industry.

E Commerce is an enormous industry globally, it's a five trillion dollar industry and again, we are the three point O three D model factory.

And again, we are the 3.0 3D model factory.

If you look at three D models.

They're now ranking higher than 2D images on Google search, which is creating even more demand and even putting more wind at our backs. Shopify has mentioned many times and publicly declared the future of e-commerce is 3D.

They are now ranking higher than to the images.

Google search, which is creating even more demand and even putting more wind at our backs Shopify has mentioned many times and publicly declared the future of E. Commerce is three D.

Make no mistake, we will take full advantage of this opportunity, of this paradigm shift. And we feel extremely confident with the way our business is aligned and the rapid growth that we're experiencing today.

Make no mistake, we will take full advantage of this opportunity of this paradigm shift.

And we feel extremely confident with.

The way our business is aligned.

The rapid growth that we're experiencing today.

Chasing gears to our portfolio companies. We do have a portfolio of companies. If you look at...

Changing gears.

To our port one of our portfolio companies.

We do have a portfolio of companies if you look at.

Our hybrid events platform, we own a company called map dynamics.

our hybrid events platform. We own a company called Math Dynamic.

And in 2022, we are seeing a healthy uptick in our live event business. Math Dynamics revenue is increasing by 47%.

And in 2022, we are seeing a healthy uptick in our live event business, Matt dynamics revenue is increasing by 47% since Q4, and the average map Pandemics order was up over 20% compared to Q4 in the previous year in <unk>.

Q4 and the average map dynamics order was up over 20% compared to Q4 in the previous year.

In December , we announced the signing of a multi-year hybrid event and marketplace contract worth over $600,000. That's a big number.

<unk>, we announced the signing of a multiyear hybrid event in marketplace contract worth over 600.

So that's a big number for <unk>.

for next steps. We're proud to say that last week we executed

Next steps, we're proud to say that last week, we executed.

on the first part of this contract, delivering as the event platform for the 2022 Restaurants Canada show and the launch of a 365 Metaverse Marketplace. So we're taking this opportunity with this event platform and we're turning it into a Metaverse Marketplace.

On the first part of this contract delivering as the event platform for the 2022 restaurants, Canada show and the launch of a 365 better versus marketplace. So we're taking this opportunity with this event platform and we're turning it into a meta versus marketplace.

which is quite a big deal, because again, we're doing the pioneering work.

Which is a quite a big deal.

Because again, we're doing the pioneering work the RC show the restaurants, Canada show.

The R.C. show, the Restaurants Canada show is, I think, the largest food service and hospitality show. It was, I think, the biggest

Is I think the largest foodservice and hospitality.

So it was I think the biggest one of the biggest events of the year that happens up in Canada, and our technology was on full display we had a major.

one of the biggest events of the year that happens up in Canada, and our technology was on full display. We had a major,

Booth at the show rate when you walked in I think we were the first boost that you saw we had our.

After show, right when you walked in, I think we were the first booth that you saw.

We had our map dynamics event platform on full display show for floor experiences included augmented reality navigation, which is AR wayfinding. We had human holograms. We had 3D models.

Mac dynamics event platform on full display show four floor experiences included augmented reality navigation, which is a way finding we had human hollow grams. We had three D models all of that was on display for the public at the largest <unk>.

All of that was on display for the public.

at the largest trade show in Canada for the food service and hospitality. It was really a tremendous, tremendous showing for NeXTEC and it was a major success because we were able to show in the real world how our technology worked and we ended up picking up a substantial amount of interest from new customers in our technology.

Jade show in Canada for the foodservice and hospitality. It was really a tremendous tremendous showing for next tech and it was a major success because we were able to show in the real World. Our technology worked and we ended up picking up a substantial amount of interest from new COO.

Customers in our technology.

So.

We believe the 365 marketplace launch opens up a large new opportunity for NeXTEC to expand the same business model into other industries beyond hospitality.

We believe the 365 marketplace launch opens up a large new opportunity for <unk> to expand.

The same business model into other industries beyond hospitality.

And at the RC show, again, we received a tremendous amount of interest from other associations for our metaverse marketplace, and we're excited to see how that unfolds in 2022 and beyond. When we look at our 3D and AR revenue, again,

And at the <unk> show again, we received a tremendous amount of interest from other associations four I met averse marketplace and we're excited to see how that.

Unfolds in 2022 and beyond when we look at our three DNA our revenue.

Again.

Everything is rapidly accelerating, the demand for 3D and AR models for e-commerce has increased. And that's because of the positive ROI.

Everything is is rapidly accelerating the demand for <unk> models for ecommerce has increased.

And thats because of the positive ROI in 2022, we are seeing new accounts sign up for <unk>, three D and <unk> CAD and many different industries and we do not see that slowing down any time soon in fact, we're seeing reorder.

2022 we are seeing new accounts sign up for Aartheist 3D and Aartheist CAD in many different industries and we do not see that slowing down any time soon. In fact we're seeing reorders.

<unk>.

We're seeing signing of new deals from small and medium sized businesses as well as large.

We're seeing signing of new deals from small and medium sized businesses as well as large we've signed.

We've signed dozens of POCs, those are essentially test orders with e-commerce businesses that have massive potential to grow. So we're in this testing phase in the first inning. All the orders, all the business that we're currently closing are the smallest.

Dozens of POC those are essentially test orders with the e-commerce businesses that have massive potential to grow. So we're in the testing phase in the first inning all the orders all of the business that we're currently closing are the smallest orders.

Orders the this is just the test

This is just the test.

And so our clients have indicated that as the test goes well and it's already happened, some of them have already stepped up to the plate and ordered significant amounts of additional models as...

So our clients have indicated that as the test goes well and it's already happened some of them have already stepped up to the plate and ordered significant amounts of additional models as they all step up and reorder represents.

They all step up and reorder, it represents thousands of additional skews and significant potential for future monthly recurring revenue.

Thousands of additional skus and significant potential for future.

Monthly recurring revenue.

and annual recurring revenue. We're seeing an uptick in new customers, which again is resulting in our annual recurring revenue continuing to grow in 2022. It's a huge validation of our efforts. This business did not exist in 2021 at this same time. We are now

Annual recurring revenue, we have seen an uptick in new customers, which again is resulting in our annual recurring revenue continuing to grow in 2022, its a huge validation of our efforts. This business did not exist in 2021 at the same time, we are now.

Now.

What we believe is that we're disrupting the emerging multi-billion dollar 3D model market because we have the highest quality.

What we believe is we're disrupting the emerging multibillion dollar three D model market, because we have the highest quality.

We have the lowest cost, and we have the most scalable 3D model solution in the world. All signs indicate that 2022 will be a breakout year for everything 3D, as previously indicated, 3D models for e-commerce.

We have the lowest cost and we have the most scalable three the model solution in the world all signs indicate that 2022 will be a breakout year for everything three D. As previously indicated <unk> models for E Commerce.

<unk> models.

represent annual recurring revenue. And it's going to be the area of our business that we believe can scale quite quickly and should be what our investors keep their eye on to measure the health of the company and our growth potential. I would highly recommend our investors

Represents annual recurring revenue and it's going to be the area of our business that we believe can scale quite quickly and should be with our investors keep their eye on to measure the health of the company and our growth potential I would highly recommend our investors steer their turns.

fear their attention away from top-line revenue growth because that's essentially our legacy e-commerce business and focus on

And away from top line.

Revenue growth because that's essentially.

Our legacy E com business and focus on.

What's happening inside the company, which is our 3D model business starting to scale in Q1 2022. We saw a substantial uptick and customer option either signing 12 months.

What's happening inside the company, which is our three D model business starting to scale in Q1 2022, we saw a substantial uptick in customer adoption, either signing 12 months.

contracts or annual repeat contracts, totally an over $1.3 million, which is from zero. And we're just getting started. So Q2 is even better. In the first six weeks of Q2,

Contracts are annual repeat contracts totaling over one $3 million, which is from zero and we're just getting started so Q2.

Is even better in the first six weeks of Q2.

We exceeded all contract sign and Q1 for 3D models, which points to the acceleration we keep talking about, actually happening.

We exceeded all contract signed in Q1 for <unk> models, which points to the acceleration, we keep talking about actually happening.

If you look at our solutions, we have an end-to-end metaverse suite.

If you look at our.

Solutions, we have an end to end <unk> suite.

as we've previously demoed for investors, we've launched a tremendous amount of technology in Q1 and rolling into Q2, just a recap of some of our announced launches, ARTIES 3D.

As we've previously demos for investors, we've launched a tremendous amount of technology.

In Q1, and rolling into Q2, just a recap of some of our.

Announced.

<unk>.

<unk> three D.

which is our 3D model and Web ARP Ecommerce platform launched ARTIS maps, which is the spatial mapping metaverse platform launched ARTIS holograms, human hologram creator app launched ARTIS 3D Shopify integration launched ARTIS world, ARTIS ultra-s world launched

Which is our <unk> model and web <unk> E Commerce platform launched <unk> maps, which is the spatial mapping met averse platform launched a art size hologram Human Hall, Graham creator App launched <unk> three D Shopify integration launched <unk>.

Swirl Aortitis soldiers who are launched.

I mean, all of this indicates a very healthy technology company that you're invested in, that we are continuing to hit our milestones. In 2022, we announced AR ties Metaverse Suite launch.

I mean, all of this indicates a very healthy technology company that youre invested in.

We are continuing to hit our milestones in 2022.

<unk>.

It ties metadata suite launched.

Airtise 3D for BigCommerce launched very shortly. We will...

<unk> three D for Big Commerce.

Launched.

Very shortly.

We will be able to announce that we've integrated with rule commerce, which is a significant platform similar to shopify that will be happening in Q2.

which is a significant platform similar to Shopify that will be happening in Q2.

We're also going to be integrating with Magento another significant platform. We're also going to be announcing the Android version of our human hologram creator app, Aartheist holograms, and we're also going to announce later this year our CAD to Poly.

We're also going to be integrating with magenta. Another significant platform. We're also going to be announcing the.

The Android version of our human hologram creator App.

<unk> <unk> grams, and we're also going to announce later this year, our cat Poly SaaS business.

SaaS business will be launched. SaaS integration with our product line does have significant implications to the scalability of our products and next tech's revenue growth.

<unk> will be launched SaaS integration with our product line does have significant implications to the scalability of our products and <unk> revenue growth.

with our continued rollout of our SaaS platforms. Next, that continues to move away from the managed solutions. We've almost completely moved away from managed solutions. And we're now focusing on annual recurring revenue and monthly recurring revenue, which is low touch. We are just...

With our continued rollout of our SaaS platforms net tech continues to move away from the managed solutions. We've almost completely moved away from managed solutions and we're now focusing on annual recurring revenue monthly recurring revenue.

Which is low touch.

We are just beginning to see the revenue and business emerge as we move full force.

see the revenue and business emerge as we move full force.

into 3D model making. Augmented reality and metaverse solutions with our new SAS products, which I just announced, we've launched.

<unk> model, making augmented reality and <unk> solutions with our new SaaS products, which I just announced we've launched.

The massive opportunity for making 3D models for e-commerce is estimated to be worth over $200 billion.

The massive opportunity for making <unk> models for E. Commerce is estimated to be worth over $200 billion.

We're just breaking the million dollar level. So we haven't even scratched the surface. This is the tip of

We're just breaking the million dollar level. So we haven't even scratched the surface. This is.

Chip.

<unk>.

the iceberg and it's only a matter of time.

The iceberg and it's only a matter of time.

In my view, before our competitors.

In my view before our competitors.

lose their ability to compete and next tech becomes the 800 pound gorilla in this space. If you look at the number of bottles that we've served, we currently have 4.5

Lose their ability to compete and next tech becomes.

The 800 pound gorilla in this space. If you look at the number of models that we've served we currently have.

4.5 million total <unk> model served that means there is 4.5 million experiences three D and our experiences.

million total 3D AR model served. That means there's 4.5 million experiences, 3D and AR experiences.

<unk>.

Shoppers.

consumers have experienced on our platform. 870,000 3D models served in Q1 alone. That's.

Consumers have experienced on our platform.

870000.

The model served in Q1 alone.

That speaks volumes.

That speaks volumes. If you divide 870,000 by 90 days.

Speaks volumes if you divide.

870000.

Bye.

90 days.

You can do the math right now.

That's almost 10,000 views a day.

That's almost 10000 view day.

Which is incredible.

incredible. So, you know, the average for the last year was much, much lower. Our increase in average downloads is growing very, very rapidly and it will continue to grow. So, in closing...

Incredible.

So.

The average for the last year was.

Much much lower.

Our increase in average downloads is growing very very rapidly and it will continue to grow so in closing.

2021 was a transformative year for NeckTak. In 2022, it's shaping up to be a breakout year, a substantial year of growth for our key growth driver, which is 3D models and AR. Again, it's critical that investors focus on the main event, which is not our legacy e-commerce business.

2021 was a transformative year for <unk> in 2022 is shaping up to be a breakout year of substantial growth for our key growth driver, which is three D models.

Again, it's critical that investors focus on the main event.

Which is not our legacy E com business, which is shrinking.

and just focuses on our fast-growing 3D model.

Just focuses on.

Our fast growing <unk> model <unk> business, we're focused on obtaining greater industry leadership and being the top provider of augmented reality and <unk> model solutions for the meta versus we have a unique position.

We're focused on obtaining greater industry leadership and being the top provider of augmented reality and 3D model solutions for the metaverse.

We have a unique position as one of the only end-to-end metaverse solutions providing spatial mapping, augmented reality 3D models for the metaverse, which creates

One of the only add to add better versus solution, providing spatial mapping augmented reality <unk> models for the meta versus which creates unique immersive experiences that people are willing to pay us for if you look at the potential we believe the total addressable market.

unique immersive experiences that people are willing to pay us for. If you look at the potential, we believe the total addressable market.

is a quarter of a trillion dollars. We believe that the SaaS market is just massive.

It's a quarter of a trillion dollars.

We believe.

The SaaS market.

Is just massive our air products and our <unk> models are very sticky and have significant implications for continuing monthly recurring revenue and annual recurring revenue, which we believe will accelerate with the adoption and stickiness of our entire augmented reality suite of products.

Our AR products and our 3D models are very sticky and have significant implications for continuing monthly recurring revenue and annual recurring revenue, which we believe will accelerate with adoption and stickiness of our entire augmented reality suite of products and services. I expect 2022 to be a

And services I expect 2022 to be a year for hyper growth of all things augmented reality <unk> meta versus I've said it over and over again that this will be a multi decade multi trillion dollar megatrend I started saying that in 2018, it's now actually being.

for hypergirls of all things augmented reality, 3D and the metaverse.

said it over and over again, that this will be a multi-decade, multi-trillion dollar megatrend. I started saying that in 2018. It's now actually being parroted by many

Parroted by many analysts on the street.

on the street. I'm very excited for what the future holds. I feel the company is realizing its dream.

Very excited for what the future holds appeal the company realizing a dream.

And this is just the beginning.

just the beginning, the tip of the iceberg. I have confidence in our company's direction, belief in our executive leadership team, and in every employee working to build the vision.

Just the beginning the tip of the iceberg.

I have confidence in our company's direction.

Belief and our executive leadership team.

Ed.

And every employee working to build the vision.

Of the meta versus <unk>.

Before I turn it over to Andrew Chan or CFO , I'm just going to say a few more things.

Before I turn it over to Andrew Chen our CFO I'm, just going to say a few more things.

We delisted from the NEO last week. We announced the delisting, our voluntary delisting. I decided.

We de listed from the Neo last week, we announced the delisting, our voluntary delisting I decided.

To the list.

Nobody asked us to do list I, just made the decision to delist.

Nobody asked us to delist, I just made the decision to delist.

The commuter shares were delisted as of Thursday, May 12th. This was done to reduce the associated cost of being listed on multiple changes in Canada because we were duplicating the expense because we were listed on the CSE.

Common shares were delisted as of Thursday May 12. This was done to reduce the associated cost of being listed on multiple exchanges in Canada, because we were duplicating the expense because we were listed on the CSC.

I would also like to note that the shears have had two positive trading days.

I would also like to note that the shares have had two positive trading days.

since we de-listed and that I don't believe in coincidences. So Thursday and Friday both the Thursday actually Friday and today we're both positive training days. I believe that on the NEO the shares were being targeted but now we are no longer on the NEO and we are much less likely to be targeted. I don't have any evidence to back this up.

Since we delisted and then I don't believe in coincidences, So Thursday and Friday.

Thursday actually Friday, and today were both positive trading days I believe that on the neo the shares were being targeted but now we are no longer on the neo we are much less likely to be targeted I don't have any evidence to back. This up so time will tell but I do believe that.

So time will tell, but I do believe that getting off the Neo exchange.

Getting off the Neo exchange was a positive for shareholders not just for the company and saving money, but also the way the stock trades. The company shares will remain listed on the Canadian Securities Exchange and on the OTC QB.

was a positive for shareholders, not just for the company and saving money, but also the way the stock trades.

The company shares will remain listed on the Kennedy's security exchange and on the OTCQB.

Just talking for a minute about market conditions, I want everybody to put things into perspective. Perspective is critical.

Just talking for a minute about market conditions I want everybody to put things into perspective perspective is critical.

As we all know, the current market conditions are rough to say the least for small cap stock.

As we all know the current market conditions are rough to say the lease for small cap stocks.

50% of the NAS back is down 50%. 50% of the stocks are down 50%. That's a huge, huge drop.

50% of the NASDAQ is down 50%.

50% of the stocks are down 50%.

That's a huge huge drop.

22%.

Are down 75%.

22% of all of the publicly listed companies on NASDAQ are down 75% and 5%.

22% of all the publicly listed companies on NASDAQ are down 75%, and 5% are down about 90%. Meemstocks got crushed down about 80%.

Our down about 90% mean Sox got crushed down about 80%.

Cryptos getting.

Crushed.

The client in 2022 is the second worst decline in history.

The decline in 2022 is the second worst decline in history.

Second only to 1932. Now, 1932 was what, 90 years ago?

Second only to 1932.

Now 1932 was.

90 years ago.

I don't think any of us on this call were alive 90 years ago.

I don't think any of us on this call.

Alive 90 years ago.

No.

That's true. Then this is the worst decline of our lifetime, certainly of my lifetime. But...

That is true then this is the worst decline of our lifetime certainly of my lifetime.

But we.

We will survive.

And we will thrive.

In fact, next tech is in the right place at the right time with what we are selling.

In fact next tech is in the right place at the right time with what we are selling.

My point is that our stock is not going down because of solvency issues. It's going down because the entire market is going down. And as the largest shareholder of Nextech, I can empathize with all of your frustrations. I'm sure you are frustrated with the share price decline as I am.

My point is that our stock is not going down because of solvency issues, it's going down because the entire market is going down.

As the largest shareholder of next tech I can empathize with all of your frustration I am sure you are frustrated with the share price decline.

As I am and I have been.

And I've been as affected, I would even argue more affected than anybody else with...

Affected.

Even argue more effected than anybody else.

With these declines in next deck.

The company and I are doing everything we can to bring shareholder value.

And it will emerge over time as the market recovers and realizes the value of next tax groundbreaking technologies and solutions.

It's important to think long term.

<unk> 24 to 36 months and remember that this is the beginning of a long journey, where patients will be rewarded.

As mentioned previously.

I am working night, day, day, night to unlock the value of our many assets and businesses that we own as a diversified technology company.

I am working day and night to unlock the value of our many assets in businesses that we own as a diversified technology company.

We are very close to signing a deal for a possible spin-out of our Metaverse Builder Platform ARITized Maths.

We are very close to signing a deal for a possible spin out of our meta versus build their platform.

Ties maps, which was on full display as mentioned earlier at the restaurants, Canada show last week in Toronto.

If this happens, it's an if, it's not a guarantee. If it happens.

If this happens it's in if it's not a guarantee.

It happens.

It will result in a pre-stocked dividend to shareholders of record. That means if you own the shares...

It will result in a pre stock dividend to shareholders of record that means if you.

All of the shares.

you will get additional shares in this spinout. If you don't want the shares you want.

You will get additional shares in this spin out if you don't own the shares you want.

And, you know, the goal here is to increase shareholder value. We're very...

And.

The goal here is to increase shareholder value.

We're very close.

Not a guarantee.

but stay tuned. With that, I'm gonna turn the call over to next tech CFO Andrew chance to provide further commentary on the quarterly financials. Take the way, Andrew. Thank you, Evan.

But stay tuned with that I'm going to turn the call over.

Two cnntech CFO , Andrew Chang to provide further commentary on the quarterly financials particular way Andrew.

Thank you, Kevin and good evening everybody.

As a reminder, unless otherwise noted, all figures reported on today's call are in Canadian dollars under IFRS. All the proceeding financial information is now available on our website and have been filed on Cedar at close-up market today for your reference.

As a reminder, unless otherwise noted all figures reported on today's call are in Canadian dollars under Ifr US all the proceeding financial information is now available on our website and have been filed on SEDAR at close of market today for your reference.

Total revenue in the first quarter was 3.5 million down from 7.7 million for the same quarter last year. These revenues continue to reflect a shift in our business from virtual events to 3D and AR and the metaverse.

Total revenue in the first quarter was $3 5 million down from $7 7 million for the same quarter last year. These.

These revenues continue to reflect the shift in our business from virtual events to <unk> and the <unk> are product sales revenue for the quarter was $3 million down from $6 million from the same quarter last year and down from $4 2 million in the immediate preceding quarter, reflecting the continued impact of COVID-19 on the supply chain and the ability.

Our product sales revenue for the quarter was 3 million, down from fixed million from the same quarter last year, and down from 4.2 million in the immediate preceding quarter, reflecting the continued impact of COVID-19 on the supply chain and the ability to obtain desired inventory products for sales on our e-commerce platform.

To obtain desired inventory products for sales on our E Commerce platform.

These macroeconomic effects were felt across all e-commerce platforms this quarter in their respective published results as well.

These macroeconomic effects were felt across all e-commerce platforms this quarter and their respective covers.

There are effective in their respective published results as well.

We did not anticipate large volumes of virtual events this quarter as revenues due to the shift in our focus from 3D8R revenue generating products and away from technology services as Evan mentioned and virtual events. During the quarter, we had gross revenues of 127,000 related to technology services and virtual events. And after taking charges for credit and refunds, net revenues were 37,000.

We do not anticipate large volumes of virtual events this quarter as revenues.

Due to the shift in our focus from 38 are revenue generating products and away from technology services as Evan mentioned in virtual events.

During the quarter, we had gross revenues of 127000 related to technology services and virtual events and after taking charges for credits and refunds net revenues were 37000.

Renewable license revenues were up 25% to 460,000 this quarter compared to the same quarter last year. And we saw 14% increase in 3D recognized subscriptions revenue and 47% increase in revenues related to our hybrid event not the platform compared to Q4 2021.

Renewable license revenues were up 25% to 460000 this quarter compared to the same quarter last year, and we saw 14% increase in three D recognize subscriptions revenue and 47% increase in revenues related to our hybrid events not <unk> platform compared to Q4 of 2021.

Yeah.

This is the result of revenue recognized from our 62% growth of AERR to the 771,000 in the latest court.

This is a result of revenue recognized from our 60% 62% growth of <unk> two 771000 in the latest quarter.

As a result of our lower revenues, gross profit also came in lower at $1.5 million compared to $3.3 million for the same period last year, while maintaining a 43% gross profit margin.

As a result, as a result of our lower revenues gross profit also came in lower at $1 5 million compared to $3 3 million for the same period last year, while maintaining a 43% gross profit margin.

Product sales gross margins on improvement from the immediate proceeding quarter of Q4 2021 and increased up 42% from 36%. As we focus more on profitable items that were limited products that were available due to COVID-19 related issues, as we mentioned previously.

Product sales gross margins saw an improvement from the immediate preceding quarter of Q4 2021, an increase of 42% from 36% as we focus more on profitable items that were limited products that were available due to COVID-19 related issues as we mentioned previously.

Technology services gross profit margins increased to 49% up 26% from Q1, 2021 and up 17% from the immediate preceding quarter of Q4 2021 as the focus now has shifted to more profitable <unk> products.

Technology services gross profit margins increased to 49%, up 26% from Q1 2021, and up 17% from the immediate preceding quarter of Q4 2021, as the focus now has shifted to more profitable 3D AR products.

We anticipate gross profit margins to increase even more as we continue to scale the business related to these products.

We anticipate gross profit margins to increase even more as we continue to scale the business related to these products.

Operating expenses for Q1 was $7.5 million, down from $2.7 million in the same period last year, and down $1.1 million from Q4 2021.

Operating expenses for Q1 was $7 5 million down from $2 7 million in the same period last year and down $1 1 million from Q4 of 2021.

The decrease in operating expenses in the quarter continues to be from sales and marketing and research and development expense.

The decrease in operating expenses in the quarter continues to be from sales and marketing and research and development expenses.

Similar to the immediate proceeding quarters, this is a continuation of our effort to shift our growth related to our 3D ARBIS.

Similar to the immediate preceding quarter. This is a continuation of our effort to shift our growth related to our <unk> business.

During the past few quarters, we have now restricted our sales source and marketing spend to be a more cost-effective model for the results, for the new pursuits in AR sales. And with the intention of lowering overall sales cost as a percentage of revenue over the upcoming quarter.

During the past few quarters, we have now restructured our sales force and marketing spend to be a more cost effective model for the results for those new pursuits.

Our sales and with the intention of lowering overall sales cost as a percentage of revenue over the upcoming quarters.

The decrease in research and development cost continues to be the result of shifting our development focus to AR products, resulting in overall lower headcount in this area.

The decrease in research and development costs continues to be the result of shifting our development focus to our products, resulting in overall lower head count in this area.

General and administrative costs remain consistent. However, there was a one time, $650,000 charge of non-cash compensation to specific management team members. Excluding such a charge, General and administrative costs would have been reduced by 20%.

General and administrative costs remained consistent however, there was a onetime 650000 $650000 charge of non cash compensation to specific management team members.

Excluding such charges general and administrative costs would have been reduced by 20%.

in relation to the average spend compared to the immediate preceding quarter in this area.

In relation to the average spend compared to the immediate preceding quarter in this area.

We continue to actively monitor and reduce our expenses were necessary to be aligned with anticipated revenues and growth.

We continue to actively monitor and reduce our expenses where necessary to be aligned with anticipated revenues and growth.

We had a net loss in Q1 of 7.7 million compared to a loss of 9.1 million in Q1 last year and a loss of 9.3 million in Q4 2021. A reduction of over 1.5 million.

We had a net loss in Q1 of $7 7 million compared to a loss of $9 1 million in Q1 last year and a loss of $9 3 million in Q4 of 2021, a reduction of over $1 5 million.

mainly from the contribution of the reduced expenditure as mentioned above.

Mainly from the contribution of the reduced expenses expenditures as mentioned above.

As of March 31st, 2022, we had a cash balance of 10.8 million inventory of two and a half million and a positive working capital of 12 and a half.

As of March 31, 2022, we had a cash balance of $10 8 million inventory of $2 5 million.

And a positive working capital of $12 5 million based on our current projections of sales and cost reductions. We feel this is sufficient capital to finance our business over the next 12 months.

Based on our current projections of sales and cost reductions, we feel this is sufficient capital to finance our business over the next 12 months. With that, I turn the call back over to Evan.

With that I'll turn the call back over to Ivan.

Okay.

Thank you Andrew.

On behalf of Next Tech, I'd like to thank everyone for taking the time to join us on this call. Thank our employees, shareholders, partners. We thank everybody.

On behalf of next tech I'd like to thank everyone for taking the time to join US on this call.

Our employees shareholders partners.

We thank everybody.

We're now ready for the question and answer portion of this call.

We're now ready for the question and answer portion of this call.

Thank you everyone. At this time, if you do have a question that will be Star One on your telephone keypad, once again, Star One for questions, we'll hear first today from Scott Buck with HDWingRate. Hi, good afternoon, guys. Thank you for taking my question.

Thank you everyone. At this time, if you do have a question that will be star one on your telephone keypad. Once again star one for questions. We'll hear first today from Scott Buck with HC Wainwright.

Hi, Good afternoon, guys. Thank you for taking my questions.

Hey, Scott Hey, Scott how are you.

Good good.

Good, good. So Evan, I think the first question is, obviously a nice sequential step up here in AR.

The first question is.

Do you see a nice sequential step up here in <unk>.

What of that is new customers versus expansion with current customers?

What of that is new customers versus expansion with.

Current customers.

Well, most of our growth is coming from new customers, but we are getting repeat orders from some of our...

Well most of our <unk>.

Growth is coming from new customers, but we are getting repeat orders from some of our bigger accounts.

Coals just, you know, doubled down and gave us a sixth figure, 12 month contract.

Kohl's just.

Double down in.

Gave us a six figure 12 month contract.

But a lot of the growth Scott is being driven by new customer wins and we see that continuing through 2022.

But a lot of the growth Scott is being driven by new customer wins, and we see that continuing through 2022.

That's that's how 11 do you know or you guys done the work? You know, if you weren't to add another customer this year, what's the potential Opportunity is just within the current customer footprint. I mean that most of you know multiples of where you are. Yeah

That's helpful. And then do you know or have you guys done the work.

You want to add another customer this year, what the potential opportunity is just within the current customer footprint.

Multiple multiples of where you are yes.

It is it's funny you asked that question, we did an hour long session. This morning to flesh that out exactly.

It is. It's fun. You asked that question. We did an hour long session this morning to flesh that out. Exactly. You know, what's the growth potential of our existing book of business? It is substantial. I don't have an exact number.

Exactly.

What what's what's the growth potential of our existing book of business. It is substantial I don't have an exact number.

But yes, it is multiples of the existing business. Because as mentioned over and over, these are test orders. These are the smallest orders that we're getting in Q4, Q1 of 2022.

But yes, it is multiples of the existing business because as mentioned over and over these are test orders. These are the smallest orders that we're getting.

In Q4 Q1 of 2022.

Yeah, no, that's helpful. And then I just want to check in like cost reduction. You know, where are you in that process? I mean, are you?

Yes.

Helpful. And then I just want to check in on cost reduction.

Where are you in that process are you.

Are you there at this point in terms of where you want to be on an object?

Are you there at this point in terms of where you want to be on an opex.

from an off-back weak point. We need to register still some more cutting to go. Yeah.

From an Opex point.

There's still some more cutting to go yeah.

We look at this as a continuing balancing act to offset our burn and increase our revenues. So I would expect another one to 2 million in cost savings in the next quarter that we're still trimming any bat and continuing to grow our revenue.

We look at this as a continuing balancing act to offset our burn and increase our revenue so I would expect.

Another $1 million to $2 million.

In.

Cost savings.

In the next quarter that we're we're still.

We're still trimming trimming any bat and continuing to grow our revenues.

Alright, that's helpful. That's all I have and I appreciate the time guys. Thank you very much.

Alright, that's helpful. That's all I have and I appreciate the time guys. Thank you very much.

Thank you Scott.

One of her next today from Lisa Thompson with ZX Investment Research.

We'll go next today from Lisa Thompson with Zacks investment research.

Hi, Lisa.

Hey, Lisa.

I was wondering since revenue probably is not the way to look at things are there any metrics or what should we focus on to.

Revenue probably is not the way to look at things. Are there any metrics or what should we focus on?

to figure out how progress is going and where you're meeting your goals.

To figure out how progress is calling where you're meeting your goals.

Yeah, so I would say revenue is a thing. It's just not the e-commerce legacy revenue that I would be focusing on. So, you know, that revenue is shrinking, but if you look inside the company, you'll see that our annual recurring revenue, the revenue tied to the 3D model business.

Yeah. So I would say revenue is a theme it's just not the e-commerce legacy revenue that I would be focusing on so you know that revenue is is.

Is shrinking, but if you look inside the company Youll see that our.

Annual recurring revenue the revenue tied to the <unk> model business.

is growing quite rapidly. We announced a 62% sequential growth in that revenue.

Is growing quite rapidly, we announced a 62% sequential growth in that revenue.

Okay, so is there any metrics you're going to give out about how many models made or how many customers or Anything that we can look at yes

Okay.

Are there any metrics you can give out about how many models made or how many customers.

Anything that we can look at.

Yes, I would say that.

We are planning on.

We are planning on bringing that forward. I don't know if...

Bringing that forward.

I don't know if.

We haven't actually brought it forward in Q I guess, we havent brought it forward yet, but it is something we are going to bring forward.

You know, we haven't actually brought it forward in Q. I guess we haven't brought it forward yet, but it is something we are going to bring forward.

I don't know if Andrew has any opinion on that, but we are planning on bringing forward the number of models, number of customers. We just don't want to confuse the market because it's so early that these, you know, if you look at, for instance, our average order value.

I don't know if Andrew has any opinion on that but.

We are planning on bringing forward.

The number of models number of customers, we just don't want to confuse the market because it's so early.

These.

If you look at for instance, our average order value.

going up 100% quarter of a quarter.

Going up 100% quarter over quarter.

I would have never have guessed that could have happened, but it...

I would have never have guessed that could have happened, but it happened and so if you were looking at let's say our average order value, let's not this quarter, but last quarter and done a 12 month projection it would've been way off.

And so if you were looking at, let's say, our average order value, last, not this quarter, but last quarter, and done a 12 month projection, it would have been way off. You look at, you know, this quarter's, you know, you know, I'm saying so it's like, everything's just still pretty fluid. We're trying to get...

Look at this quarters.

What I'm, saying, so it's like Everything's just still pretty fluid.

Trying to get.

a real understanding of what we could project.

A real.

Understanding of.

What we could project.

We could project out with confidence and then we're going to certainly give that to you.

We can project out with confidence and then we're going to we're going to certainly give that to you.

Do you have.

Do you have an idea of how much of the revenue is kind of a per-model thing and how much is recurring revenues that are monthly?

Of how much of the revenue is kind of a per model thing and how much is recurring revenue.

Okay.

I think we broke it out where it was like...

Yes, I think we broke it out.

Was like.

770, something was per model and then the rest was.

770 something was per model and then the rest was

you know the rest was some of our other recurring revenue

The rest was some of our other.

Recurring revenue.

Business.

Okay, do you think that per mile business is gonna be seasonal?

Okay do you think that per mile business is going to be seasonal.

No.

Okay, so it's just gonna build from here. Doesn't matter what quarter it is. It's just, yeah, it's just gonna build. I don't see it, you know, we're seeing, we saw a demand in Q4, we're seeing continuing demand in Q1, Q2, we're seeing a larger uptick in demand. I think what's driving demand is big tech.

Okay.

Just going to build from here it doesn't matter what quarter. It is is this.

It's just going to build I don't see it.

Seeing.

We saw demand in Q4, we're seeing continuing demand in Q1 Q2, we're seeing an even larger uptick in demand I think what's driving demand is big tech.

kind of forcing the hands, and by putting 3D models higher up in search.

Kind of forcing the hands and.

No.

Putting three D models higher up in search.

by shopify essentially telling their e-commerce sites to go get 3D models and then of course the ROI.

Bye.

Shopify essentially Italian there.

Commerce.

<unk> to go get three models.

<unk> models, and then of course the ROI.

you know, once they do get a 3D model on their site, they come back for more.

Once they do get a three D model on their site they come back for more.

Okay. Thanks, Kevin.

I think that makes sense. To have an earlier point, yeah, I mean, ARR, we're relatively early in the process for seasonality.

Earlier point.

Yeah, I mean, we're.

We're relatively early in the process for seasonality.

to all the industries that Evan had talked about earlier. They're the beginning customers of those industries seeking 3D models. So any kind of sense of seasonally and went on, I think it's just really too early at this point. So

To all the industries that haven't had talked about earlier.

There.

The beginning customers of those industries seeking <unk> models.

So any kind of sense of seasonality in one odd I think it's just really too early at this point.

All right, and are you still constrained by just getting enough people to crank out models?

Alright.

Are you still.

Constrained by just getting enough people to crank out models.

Is that where we're at? Still? No? No? No? It's all. Not at all.

Is that where we're out still no no no not at all.

Al.

Great, that's great. All right, and just one last thing, just to help us pour analysts, how do we think about e-commerce this year, given...

Great that's great Alright, and just one last thing just to help us poor analysts how do we think about E. Commerce this year given.

supply chain and everything else. Do you feel like it's gonna be down 50% for the year or is it gonna be?

Supply chain and everything else do you feel like it's going to be down 50% for the year or is it going to be.

kind of flat, eventually going low, how does that? It's a tough call, Lisa, because we don't control supply chains. Right. So we place orders. And if we get a delivery, we sell through it. If we don't, if they say, no, we can't, if we can't. So being told that

Kind of flat.

How does that what's the.

So it's a tough call Lisa because we don't control supply chain right right. So we replace orders.

And.

If we get a delivery we sell through it if we don't.

No we can't.

If we can't so.

Being told that.

We had a couple of orders that were not delivered. And so obviously we couldn't sell. And so now we're getting some of those orders and that flowing, flowing in and going out. So we're gonna sell. But it's impossible to predict.

We had a couple of.

Orders that were not delivered.

So obviously, we couldnt sell and so now we're getting some of those some of those orders are now flowing through I went in and going out so we're going to sell so.

But it is impossible to predict.

What 20 looks like, I mean, I wouldn't use this quarter as, let's say the

What 'twenty looks.

It looks like I mean.

I wouldn't use this quarter.

As.

Let's say the.

The metric I would to measure things by, I would say that

The metric.

To measure things by I would say that.

It's just impossible I don't have a <unk>.

It's just impossible. I don't have any visibility. Do you enter?

Ability to you Andrew.

No, I mean, I think you would have seen other kind of e-commerce platforms come up with their quarterly results and they weren't good either and there wasn't quite a definitive answer to any of those questions. It's just right now, or kind of...

No I mean, I think you would've seen other kind of e-commerce platforms.

<unk> come out with their quarterly results.

They werent good either and there wasn't.

Quite a definitive.

Answer to any of those questions.

Right now we're kind of in a holding pattern similar to what Kevin has said.

We're just like.

Like he said, once we get product, we sell through it, but right now it's matter kind of getting product.

Like you said once we get product, we sell through it but right now it's a matter of kind of.

Getting products.

So if you had to just guess for this quarter is it going to be up or sideways.

So if you had a disc guess for this quarter, is it gonna be up or sideways or?

Any direction? You know, my guess would be it'd be up from kind of this quarter. But you know, are we going to get to, you know, where we work?

Any directional.

My guess would be it would be up from kind of this quarter.

Okay, but are we going to get to.

Where we were before that's still kind of TBD.

All right, great. I'm glad we had this conversation because it's been hard to...

Alright, great.

Had this conversation because it's been hard to.

Try to figure things out alright, great. Thank you so much answering my questions.

Try to figure things out. All right, great. Thank you so much. I was on my questions.

Thanks Lisa.

And once again, if you do have a question that will be star one at this time and will pause for just a moment.

And once again, if you do have a question that will be star one at this time and we'll pause for just a moment.

Okay.

Well hear next today from.

Randy <unk>, a private investor.

Hi.

Hey, Randy.

Hi, Randy.

Hi, first great. You mentioned on a podcast, I think it was Wall Street Reporter about to be cash flow positive, you would need like 100,000 models. I was wondering how many paying models you have done at the press.

Okay.

Alright, great.

You mentioned on a podcast I think it was wall Street reporter about.

To be cash flow positive you would need like 100000 models I was wondering how many paying models you have done at the present.

We've announced that we've done over 10,000, but we haven't put an actual number on it. It's between 10 and 15,000, but yeah, it's growing every day.

We've announced that we've done over 10000, but we haven't put an actual number on it.

It's between 10 and 15000.

But.

Yes.

It's growing.

Every day.

So.

And I don't remedial action.

Yes.

Yes, I do.

I don't remember saying that we need 100,000 models.

Don't remember, saying that we need 100000 models.

to be cashier or positive, but if I did say that, let's just also keep in mind that I might have said that if we were using, let's say, $10 per model per month, which was our expectation, but we're actually getting more money.

To be cash flow positive, but if I did say that.

Let's just also keep in mind.

<unk>.

Might have said that if we were using let's say $10 per model per month.

Which was our our expectation, but we're actually getting more money than we anticipated as mentioned earlier, our average order value was going up.

then we anticipated, as mentioned earlier, our average order value is going up. And a lot of that is because we're getting $20 per model, per month, and in some cases, $25 per model per month. So, or $15 per model per month. It's still early, it's still a moving target, as far as when we get to cash role positive. That's really all about that.

And a lot of that is because we're getting $20 per model per month.

And in some cases $25 per mile per month, so or $15 per mile per month. So so.

It's still early it's still a moving target as far as when we get to cash flow positive.

That's really all.

About that.

Great.

Thank you very much.

Okay.

Youre welcome.

We'll hear next from Peter Levine with Ameer Price Financial.

We'll hear next from Peter Levine with Ameriprise financial.

Hi gentlemen, thanks for taking the call. Very much looking forward to the next episode of the future.

Hi, gentlemen, thanks for taking the call.

Very much looking forward to nasdaq's future.

I had a quick question. You know, thank you. I had a question on your cash barn. What do you anticipate it will be for this year in total?

I had a quick question.

Yeah.

I had a question on your cash burn what do you anticipate it will be for this year in total.

Okay.

I'm not sure about the total, but I could tell you that.

I'm not sure about the total but I can tell you that.

We're getting it down to, you know, sub a million per month.

We're getting it down to <unk>.

<unk>.

$1 million per months.

So I'm not sure, you know, you could figure somewhere between 10 and 15 million. That's unreasonable to you, Andrew.

So I'm not sure you could figure.

We're between 10 and $15 million.

Does that sound reasonable to you Andrew.

Yes, that's on our technology services side.

Okay, so do you expect to go to the market again as you did this past quarter or do a private placement I guess?

Okay.

So do you expect it to go to the market as again as you did this past quarter.

Or do a private placement I guess.

No, we do not, as we announced, we raised a bunch of money in January and we believe we have enough money for the next 12 months, so that means all of 2022.

No we do not as we announced.

We raised a bunch of money in January .

We believe we have enough money for the next 12 months so.

Of 2022.

Okay. And this is a question that you were getting sick of hearing from, but given the state status of the market and everything else, but I'll throw it out there. Nasdaq listing, timing.

Hey.

And.

This is a question that you were getting sick of hearing from but.

Given the.

Status of the markets and everything else, but I'll throw it out there.

Yeah.

NASDAQ listing timing.

Not even a thought anymore. What is- where are we on that?

Not even a thought anymore, what is where are we on that.

No, it's definitely still a thought. And it's definitely something that we want to do, but it has moved down the ladder, as the share price has come down. There's a lot of other things that are more pressing. It doesn't really seem to be as important today as it was in the past. And so it is still

No it's definitely still a thought.

And it's definitely something that we want to do but it has moved down the ladder as the share price has come down.

There's a lot of other things that are more pressing.

It doesn't really seem to be.

As.

Important today as it was in the past.

So it is still.

Definitely, let's say nothing's changed. Our application is still active and we are still engaged, but it's less of a focus. My focus is building the business and running the business. And so NASDAQ, while less important in a down market environment, much more important in a pool market.

Definitely.

Let's say nothing's changed our application is still active.

We are still.

Engaged but it's less of a focus my focus is building the business and running the business.

And so NASDAQ while.

Important less important in a down market environment much more important in a bull market.

Yeah, well sure.

So I don't want to stick you to a date or anything else like that, but it sounds to me like it's a 2023.

So.

I don't want to.

Thank you too.

David or anything else like that but it sounds to me like it's.

2023.

Possibilities then nowhere in our 2022 if anything.

Possibility than nowhere in a 2022, if anything.

You could make that assumption I didn't say that.

i know i didn't i know you didn't come to think of that's what it sounds like that's what it is and you know of course you know institutional investors need to have an on a major listing and i love your story

No I didn't.

No I'm, just saying that's what it sounds like that's what it is in and of course.

Institutional investors need to have it on a major listing and I Love Your story.

um... but you know that that that is uh... you know it's like a chicken in the egg type of question here comes to that to you to investors buying small caps box today or they selling dump

But you know.

That is a it's like a chicken and egg type of question here when it comes to that.

Alright.

<unk> investors buying.

Small cap stocks today or are they selling dumping.

You know, so again, I'm not saying we don't want to be listed, but you don't want to get listed in the love of a storm, right? So, I mean, is everything.

So again I'm not saying, we don't want to be listed but you don't want to have it listed below the storm right. So.

Everything.

We will get listed today. It's not really a topic that I think is relevant to any of our investors.

Patient well, we yes, we will get it.

Today, it's not really a topic that I think is relevant to any of our investors. So any other questions.

No, I just on the cash burn and the NASDAQ deal and you know that's really what I'm seeing here and I'm glad the pivot that you make into the 3D models and wish you guys a lot of luck. Thank you very much.

No I just just on the cash burn in the NASDAQ deal and.

Thats really what im.

Saying here and I'm glad the <unk>.

Pivotal you're making to the <unk> models and wish you guys a lot of luck.

Thank you very much.

Alright, thank you.

Okay.

Once again for questions that is Star 1 at this time.

Once again.

For questions that is star one at this time.

Yeah.

We'll hear next from Richard Ryder, a private investor.

We'll hear next from Richard writer, a private investor.

Hello Devin.

Yeah, how are you doing Richard Hi, how are you doing.

Yeah, hey, Dan Richard. Hi, how are you doing? Just something to say. I was listening to the on the website, to you call, and I signed in at five o'clock, and it went dead.

Just noticed I was listening to the on the website to your call and I signed a new five o'clock and it did.

And so anybody on that, and I called the company Q4, and they just said they were working on it. And so I don't know how many people tried to listen on that network, but I heard about 30 seconds of you. And then I finally was able to find the number from Q4. They gave me your numbers, so I called in. Now I've been listening, but I lost the first half hour of the whole thing. So I have good. I have good.

And so anybody on that on the call the company Q4.

I, just said that we're working on it.

So I don't know how many people.

Try to listen.

On that network.

Okay I heard about 30 seconds of you and then.

I finally was able to find the number from Q4. They give me your numbers if I called in no I've been listening, but I lost the first half hour of the whole thing so while I have good news.

Good news for you Richard.

This is recorded. You will be able to listen to the replay. Didn't miss a thing.

This is recorded.

We'll be able to listen to the replay didnt Miss a thing.

Okay. Alright. Let me ask a question though. Why do you want to spin off something?

Okay Alright.

Let me let me ask the question why do you want to spin off something.

The.

Because, yeah, explain. So, again, just to reiterate.

The map because yeah I'll explain.

So again.

Just to reiterate.

I've spent 30 years on Wall Street.

And what I recognize is that oftentimes companies have undervalued assets, especially small cap companies like Nick.

And.

What I recognize this that often times companies have undervalued assets, especially small cap companies like next time.

I do not believe that our Aartized Maps is getting any

Do not believe that our archives maps is getting any valuation.

at all from investors. I do not believe that that asset is being valued properly.

All from investors I do not believe that that asset.

He is being valued properly in.

And the spin out allows that business to stand on its own and not be kind of almost hidden inside of next task.

The Spinout allows that business to stand on its own.

Not be.

Kind of almost hidden inside of next tech.

And so the spin out allows investors, you, me and everyone else on this call to

And so the spin out.

Laos investors, you me and everyone else on this call.

To participate in.

in the unlocking of that value. We will be able to issue a dividend.

In the <unk>.

Unlocking of that value, so we will be able to.

Issue a dividend.

Stock dividends or shareholders hope you own next tech you will get

Stock dividends.

Our shareholders. So if you own next tech.

You will get free shares.

in this new company. So instead of owning just Nexpex shares, you will own shares in Nexpex Plus, the spinout, and at that spinout.

In this new company. So instead of owning just next deck chairs.

We'll own shares it mixed tech plus the spin out and that's been out.

increases in value, which obviously we believe it will. Your

Increases in value, which obviously, we believe it will your.

<unk>.

portfolio increases in value and we help to build our shareholder value and that's really my goal. That's the reason why we spin it out.

Portfolio increases in value and we.

Helped to build our shareholder value.

And Thats really Michael that's the reason why we spin it out.

How much business are they doing now.

It's a start up. It's just the start up. They're literally just starting. It's not going to affect our revenue at all. We don't lose anything. We only gain.

It's a start up.

It's just the startup there literally just starting so they're not it's not going to affect our revenue at all.

We don't lose anything we only gain.

Okay.

I'm not a proper to say this but I'm going to get in.

I don't know if its proper to say this but.

I'll, let gavin.

Listen to the replay when it's available and I might call you back.

listen to the replay when it's available and I might call you back.

You could put one name on the side because I've been waiting a long time to hear this call.

You could put my name on the side because.

I've been waiting a long time to heal those call.

So I was quite disappointed.

disappointed when it stops. So I want to dig just the material on the call.

When it stops so I wanted to digest the material line Mcallen.

I might call the company and say hello. So I hope you don't mind that. Thank you. No problem. We're here for you, Richard. Thank you for tuning in. I've listened to all your, I've listened to all your Wall Street reporter stuff. I've been listening for a couple of years now. And I've quite a few shares. So I am interested. Okay, well thank you. Yeah. Have a good day. Thank you, Richard.

I might call the company and say Hello, So I hope you don't mind that no. Thank you no problem. We're here hi, Richard Thank you.

I listen to all of you listen to audio Wall Street reporter stuff, you know ive been listening for couple of years now.

And I have quite a few share so.

Okay, well thank you yes.

Thank you Richard.

You too.

All right, we'll take another couple, another call, another question.

Alright, well take.

Another couple of another call another question.

We'll hear next today from John Reynolds, also a private investor.

We'll hear next today from John Reynolds also a private investor.

Hey Evan. Hey John . Hey, uh, how are you? I'd like to clean clean up a little of this Nasdaq business

Hey, Kevin Hey, John Hey.

How are you like clean clean up alone with this NASDAQ business for some of our.

our values share holders who are continuously hitting you to do that.

Our valued shareholders, who are continuously hitting you to do that.

I had a private company I invested in with public and

Just.

I had a company a private company I invested in the.

Public and.

They wanted to go on NASDAQ and did so. But, you know, people aren't buying stock because just because you're on NASDAQ, we've had four reverse stocks, plus just to meet the $2 share.

They wanted to go on NASDAQ and did so.

But people who are buying stock because just because you're on NASDAQ. We've had four reverse stock split just to meet the $2 a share.

You know, minimum thing and it's, it's, you know,

Minimum thing.

I am not doing too well with reverse dog splits. So I think people need to realize that institutions aren't going to buy stocks.

I am not doing too well with reverse stock split so I think people need to realize that institutions arent going to buy stocks.

just because they have a share of price of $2 and they're on the NAS.

Just because they have a share price of $2 in there on the NASDAQ.

So I think thank you.

So I think you need to be patient with you. And let's just move through this because I don't think anybody here wants to have a reverse stock.

Yeah, yeah, so need to be patient.

Yes.

Let's just move through this because I don't think anybody here wants to have a reverse stock split.

Yeah, I appreciate that. And I think, you know, more to your point, there is no Nirvana, there's no magic, silver bullet. Nasdaq, certainly not a silver bullet, as Richard mentioned, plenty of companies that struggle on Nasdaq. I guess, you know,

Yes, I appreciate that and I think more to your point there is no Nirvana Theres no magic silver bullet.

NASDAQ certainly not a silver bullet as Richard mentioned plenty of companies that struggle on Nasdaq.

Yes.

My mistake was I thought we were going to get listed on that back. So I told our investors and they seemed to remember that. And they don't want to let it go. It's kind of like.

My mistake was I thought we were going to get listed on NASDAQ. So I told our investors and they seem to remember that.

And they don't want to let it go it's kind of like.

you know, something that they've become a bit obsessed with. But thank you, Richard, for sharing that story. Did you have any questions for me? This is Bob, by the way, not less Richard. Sorry, sorry.

No.

Something that.

They've become a bit obsessed with but thank you Richard.

Or sharing that story did you have any questions for me. This is by the way.

That Richard touch, but sorry, sorry.

Yeah.

Yes.

That was pretty much just people are hammer in the NASDAQ thing and I just think they.

That was pretty much, I just, you know, people are hammering the NASDAQ thing and I just think that they need to be more patient. Let's keep moving forward the way you are by growing the company.

They need to be more patient.

Just keep moving forward the way you are by growing the company.

And the proper time, we will get on NASDAQ I'm sure.

Thank you, John . I sincerely appreciate your support. And I think investors should listen to what John is saying because what he's saying is the truth. And again, there is no Nirvana. There's countless companies on NASDAQ that don't go up. It's not guaranteed. Now, having said that, when the timing is right, and...

Thank you John I sincerely appreciate your support.

And.

I think investors should listen to what John is saying.

Because what he is saying is the truth.

There is no Nirvana there is countless companies on Nasdaq.

Don't go up it's not it's not a guarantee now having said that when the timing is right.

And our business is growing quite rapidly I do believe we belong on NASDAQ I do believe that the institutions will buy our stock and I do believe that it will be a big benefit to next tech, but as mentioned earlier the timing of it is critically important.

is growing quite rapidly. I do believe we belong on NASDAQ. I do believe that the institutions will buy our stock. And I do believe that it will be a big benefit to Nextech. But as mentioned earlier, the timing of it is critically important.

So I don't believe that right now is the time to go, you know, pedal to the metal on that. So let's just leave the NASDAQ conversation. We can have a whole.

So I.

I don't believe that right now is the time to go pedal to the metal on that so let's just leave the NASDAQ conversation, we can have a whole.

We could pontificate about NASDAQ for a whole hour here. So...

<unk> pontificate about NASDAQ for a whole hour here so.

I'd rather see you again. Thank you. Forget the nasty. Fail. Exactly. Thank you, John . I appreciate your input and have a great.

I'd rather see it.

Forget the Nast hail.

Exactly thank you John I appreciate your input.

And have a great evening.

And that is all the time we have a question. Today I'd like to turn things back to you all for any closing remarks.

And that is all the time were great questions today, I'd like to turn things back to you all for any closing remarks.

Yes.

Yeah, I will just thank our investors. It is turbulent times.

Yeah, I will just thank our investors.

It is a turbulent times.

My focus is on increasing shareholder value. I don't believe you'll find another CEO as heavily invested as I am. And with that, I will end today's call. Thank you for participating, everybody. And everyone have a pleasant evening.

My focus is on increasing shareholder value.

I don't believe Youll find another CEO as heavily invested.

I am.

And with that I.

We'll end today's call. Thank you for participating everybody and everyone have a pleasant evening.

And again, that does conclude today's conference. Thank you all for joining us. You may now disconnect.

Good night.

And again that does conclude today's conference. Thank you all for joining US you may now disconnect.

Okay.

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Sure.

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Okay.

Okay.

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Yeah.

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