Q4 2023 Nextech3D.ai Earnings Call
Good afternoon, ladies and gentlemen, welcome everyone to the next tech three D Dot AI full year and fourth quarter earnings.
Operator: Good afternoon, ladies and gentlemen. Welcome everyone to the Nextech3D.ai full year and fourth quarter earnings and conference call. All lines have been placed on mute to prevent any background noise.
Earnings 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 will be provided at that time for you to queue up for questions I'd.
Operator: After the speaker's remarks, there will be a question and answer session, and instructions will be provided at that time for you to queue up for questions. I'd like to remind everyone that this call is being recorded today, April 29th, 2024. On the call are Evan Gappelberg, Chief Executive Officer, and Andrew Chan, Chief Financial Officer. Today, after the markets closed, Nextech3D.ai released its unaudited financial and operating results for its full year and fourth quarter ending December 31, 2023.
I'd like to remind everyone that this call is being recorded today April 29th 2024 on.
On the call are oven, Gaffle Burke, Chief Executive Officer, and Andrew Chang Chief Financial Officer.
Today after market close next Tac three D. Dot AI released its unaudited financial and operating results for its full year and fourth quarter ending December 31st 2023.
Operator: A copy of the earnings disclosure is available on the Nextech3D.ai website and on CDAR. Some of the information discussed on this call is based on information as of today, April 29, 2024, and contains forward-looking statements that involve risks and uncertainty. actual results may differ materially from those set forth in such statements.
A copy of the earnings disclosure is available on the next track three D Dot AI website and on SEDAR.
Some of the information discussed on this call is based on information as of today April 29th 'twenty 'twenty four and.
Android looking statements that involves risks and uncertainties actual results may differ materially from those set forth in such statements.
Operator: For a discussion of these risks and uncertainties, you should review the forward-looking statements, disclosures, and the earnings press release, as well as the company's CPR filing. During the call, they will discuss IFRS results and key performance indicators. Neither this call nor the webcast archive may be recorded or otherwise reproduced or distributed without prior written permission from Nextech3D.ai. To begin the call, Evan Gappelberg, Chief Executive Officer, will discuss financial highlights as well as recent business developments, followed by Andrew Chan, Chief Financial Officer, who will review financial results and outlook. I'll now turn the call over to Chief Executive Officer and Founder of Nextech3D.ai, Evan Gappelberg.
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 the company's filings.
During the call they will discuss I F. R. S results and key performance indicators. Neither this call nor the webcast archive may be recorded or otherwise reproduced or distributed without prior written permission from next tech three D Dot AI.
To begin the call Evan Goldberg, Chief Executive Officer will discuss financial financial highlights as well as recent business developments, followed by Andrew Chen Chief Financial Officer, who will review financial results and outlook.
Evan Goldberg: Now I'll turn the call over to Chief Executive Officer, and founder of next tax re Vive Dot AI I've been gobbled Berg.
Evan Goldberg: Okay.
Evan Goldberg: Thank you.
Evan Gappelberg: Welcome, everyone, and thank you for joining us. 2023 is in the rear view mirror. We are driving hard in 2024, but it is important to look at 2023 just to gain some perspective. We did earn about $5 million in revenue in 2023, and that was during challenging economic conditions. I don't know if everyone remembers, but in 2023, interest rates were rising at a breakneck pace, and capital was leaving the capital markets. Raising capital has become extremely, extremely difficult in 2023, and that really continues because interest rates are still at elevated levels in 2024.
Evan Goldberg: Welcome everyone and thank you for joining.
Evan Goldberg: 2023.
He is in the rearview.
Evan Goldberg: We are driving hard in 2024, but it is important to look at 2023 just to gain some perspective, we did do that $5 million in revenue in 2023.
Evan Goldberg: And that was theory.
Evan Goldberg: Challenging economic conditions.
I don't know if everyone remembers but in 2023 interest rates.
Evan Goldberg: Rising at a break neck pace.
Capital.
Evan Goldberg: Leaving the capital markets raising capital.
Evan Goldberg: Extremely extremely difficult in 2023 and that really continues because interest rates are still at elevated levels in 2024.
Evan Gappelberg: We made strategic initiatives in late 2023; given the climate that we were in, we pivoted to India in Q3 2023. That strategic shift contributed to our optimistic outlook in 2024 and beyond. We reduced our labor costs quite dramatically, and we're starting to see dramatic positive results from that pivot to India without losing our production capabilities along the way. It's not easy to move a hundred people from one part of the world to another and still maintain your business, especially as a small company. So that was no small feat, and we accomplished that. And I can happily report that that is now done.
Evan Goldberg: We made strategic initiatives in late 2023.
Given the climate that we were at we pivoted to India.
Evan Goldberg: In Q3 2023.
Evan Goldberg: That strategic shift.
Evan Goldberg: <unk> did.
Evan Goldberg: You are optimistic outlook.
Evan Goldberg: 24 and beyond.
Evan Goldberg: Reduced our labor costs quite dramatically and we're starting to see dramatic.
Evan Goldberg: Positive results from that pivot to India.
Evan Goldberg: Without losing our production capabilities along the way.
Speaker Change: It's not easy to move.
Speaker Change: 100 people.
One part of the world to another.
We'll maintain that.
Speaker Change: Your business, especially as a small company so that was no small feat and we.
We accomplished that.
Speaker Change: How do we report that that is done we also.
Speaker Change: Hi.
Evan Gappelberg: We also had a reduction in headcount in 2023 to streamline our operations and reduce our costs in our drive to profitability and go cashflow positive. We also invested heavily in our AI technology, particularly our patented technology, which is playing a crucial role in our enhanced product offerings and also our operational efficiencies. For Nextech, AI is actually driving our business forward. If you look at our business performance in 2023, we reduced our burn, but AI didn't actually kick in in a dramatic way until 2024, because it does take a quarter or two to see results. So, by 2024, we've reduced our burn to right around and really just under $200,000 a month.
Speaker Change: Reduction in head count in 2023 to streamline our operations and reduce our costs in our drive to profitability and growing cash flow positive. We also invested heavily in our AI technology, particularly in our patented technology.
Speaker Change: Which is playing a crucial crucial role in our enhanced product offerings and also our operational efficiencies for next tech.
Speaker Change: <unk> is actually driving our business forward.
Speaker Change: If you look at our business performance in 2023, we reduced our burn.
Speaker Change: But it didn't actually kick in in a dramatic way until 2024, because it does take.
Speaker Change: A quarter or two just see the results so 2024.
Speaker Change: We've reduced our burn to two.
Speaker Change: Right around and really just under $200000 a month.
Evan Gappelberg: Q2 2024, which is where we are today, we are looking at our 3D modeling business; that segment of the business, if we look at that business as a standalone business, it is cash flow positive, and that's generated by optimizations of our AI technology and the combination of our pivot to India. Again, looking forward, we are driving towards achieving profitability in 2024, and that's going to be on the back of increased enterprise-level customers.
Speaker Change: Q2, 2024, which is where we are today.
Speaker Change: Looking at our three D modeling business that segment of the business. If we look at that business as a standalone business. It is.
Cash flow positive and that's generated by optimizations of our AI technology and the combination of our pivot to India again looking forward, we are driving towards achieving profitability in 2024.
Speaker Change: And that's going to be on the back of.
Speaker Change: Increased enterprise level customers. We are currently working towards closing deals with some very large accounts and when those deals close.
Evan Gappelberg: We are currently working towards closing deals with some very large accounts. And when those deals close, we expect that they're going to have a material impact on our business. We're also looking at innovation, and that's a big part of our story, that we are innovators in the 3D modeling space. It's not just about 3D models. It's about generative AI texturing.
Speaker Change: We expect that that's going to have a material impact on our business. We're also looking at innovation and that's a big part of our story that we are innovators in the three D modeling space. It's not just about <unk> models, it's about generative AI texturing.
Evan Gappelberg: It's about our CAD converter technology enhancements in our AI capabilities to improve the 3D modeling process and ultimately improve the speed, lower the cost, and increase our ability to scale. Our AI and 3D cloud hosting services are expanding in 2024 again. And, of course, our AI-powered 3D photography studio, which I'm extremely bullish about. It's a brand new service, and we are seeing strong market demand. Every single customer that we presented to wants it, is buying it, and signing up for it. So if you think about photography, 3D photography going with the 3D model, it really is a perfect, perfect business. And that is 100% AI powered.
Speaker Change: Our CAD converter technology enhancements in our AI capabilities to improve three D modeling process and ultimately improve the speed lowered the cost.
Speaker Change: And increase our ability to scale.
Speaker Change: <unk> cloud hosting services are expanding.
Speaker Change: In 2024 again.
Speaker Change: Of course, our AI powered <unk> photography studio, which I am extremely bullish about its a brand new service.
Speaker Change: And we are seeing a strong market demand every single customer that we presented to once it is buying it and signing up for it. So if you think about photography, <unk> photography going with the <unk> model.
Speaker Change: It really is a perfect perfect business and that is 100% AI powered.
Evan Gappelberg: Those are those 3D photography businesses in the AI business segment that we are launching right now in Q2. If you look at the market, we're still dealing with high interest rates, which again is I think keeping a lot of small cap stocks from actually achieving much higher valuations. But from our perspective, we're seeing significant interest in our entire tech suite, including our 3D modeling business and our AI-powered services. But again, I will stress that.
Speaker Change: Those are those three the photography business is an AI.
Speaker Change: Business segment that we are launching.
Speaker Change: Right now in Q2, if you look at the market, we're still dealing with high interest rates.
Speaker Change: Which again is is I think keeping a lot of the small cap stocks.
From actually achieving much higher valuations.
Speaker Change: But from our perspective.
Speaker Change: Our scheme.
Speaker Change: Significant interest in our entire tech suite <unk>.
Speaker Change: Including our three D modeling business and our AI powered.
Speaker Change: Services, but again I will stress that the.
Evan Gappelberg: The upside is still ahead of us as these enterprise deals really do take time, and they really will have a material impact. ARWE has experienced a significant increase in demand for its indoor navigation and wayfinding services globally throughout 2023 and is really starting to surge in Q1 and Q2 2024. We're signing deals now on a weekly basis, pretty much unheard of for a new tech company to be able to achieve that on a global scale.
Speaker Change: The upside is still ahead of us as these enterprise deals really do take time and they really do they really will have a material impact if we look at our subsidiary performance.
Speaker Change: <unk>.
Speaker Change: Is.
Speaker Change: Standing out <unk> has experienced a significant increase in demand for its indoor navigation and we wait five services glue.
Globally throughout 2023, and really starting to surge.
Q1, and Q2 2024, we're signing deals now on a weekly basis.
Speaker Change: Pretty much unheard of.
Speaker Change: Our new Tech company to be able to achieve that on a global scale and I'm extremely bullish on airway and what's to come in the second half of 2024, if you look at.
Evan Gappelberg: And I'm extremely bullish on ARWay and what's to come in the second half of 2024. If you look at ARWay, the main event and the thing for investors to keep their eye on is developing infinite-scale indoor navigation. Nobody has cracked the code on infinite-scale indoor navigation using spatial maps.
Are we the main event.
Speaker Change: And I think for investors to keep their eye on is developing infinite scale indoor navigation Nobody has cracked the code on infinite scale indoor navigation using.
Speaker Change: Spatial maps.
Evan Gappelberg: We think we are knocking on that door and about to break through. We believe that we will be the first to market in 2024, and that will really, really excite the entire global market for what it is that ARWay sells, which is, again, indoor navigation using our proprietary spatial computing platform. The big event, though, is that there is infinite scale, so pay attention to that.
Speaker Change: We think we are knocking on that door and adapt to breakthrough.
Speaker Change: We believe that we will be first to market in 2024 and that that will.
Speaker Change: Really really excite the.
Speaker Change: The entire global market for what it has been airway cells, which is again indoor navigation using our proprietary spatial computing platform. So the big event, though there is infinite scale.
Speaker Change: Pay attention to that we have many airway pilot programs that are concluding and we expect them to transition into a major contract signings again specifically.
Evan Gappelberg: We have many ARWay pilot programs that are ending, and we expect them to transition into major contract signings again, specifically in the second half of 2024. If you look at our growth, The completion of pilot programs, which is what we have been working on, really, for the last six months, is anticipated to lead to the signing of substantial contracts, and that's going to continue to boost the company's growth and profitability for years to come.
Speaker Change: In the second half of 2024.
If you look at our growth.
Speaker Change: The completion of pilot programs, which is what we have been working on really for the last six months is anticipated to lead to signing a substantial contracts and that's going to continue to boost the company's growth and profitability.
Speaker Change: For years to come if you look at.
Evan Gappelberg: If you look at the convergence of technology and advancements with new business opportunities, it really does position ARWay and, by extension, the parent company, Nextech, for robust performance in 2024. So as we move forward, and we look at Nextech, and we look at Toggle,
Speaker Change: The convergence of technology, and advancements with new business opportunities. It really does position airway and by extension the parent company next tech or.
Speaker Change: Robust performance in 2024.
Speaker Change: So as we move forward and we look at.
Speaker Change: Next tech.
And we look at toggle.
Speaker Change: You really need to look beyond just three D modeling the company.
Evan Gappelberg: You really need to look beyond just 3D modeling. The company positions itself as a comprehensive AI 3D tech provider expanding and extending beyond mere 3D modeling. That's where we started. But we are way, way past just doing 3D models.
Speaker Change: <unk> itself as a comprehensive AI <unk> tech provider, expanding and extending beyond mere three D modeling, that's where we started.
Speaker Change: But we are way way past just doing <unk> models, we have a full spectrum of three D related technologies and services.
Evan Gappelberg: We have a full spectrum of 3D-related technologies and services, and I would suggest our investors value our company, not just on the 3D modeling business but also on the intrinsic value of our patented technology and the future significant revenue opportunities, which include the 3D modeling business but extends beyond 3D. Texturing using AI, 3D hosting using the cloud, our own cloud services, and 3D AI photography.
Speaker Change: I would suggest our investors value our company not just on the three D modeling business.
Speaker Change: But also on the intrinsic value of our patented technology and the future.
Speaker Change: Significant revenue opportunities, which include the three D modeling business, but extends that three D. <unk>.
Speaker Change: Texturing using AI.
Speaker Change: Hosting using cloud our own cloud services three the AI photography these services.
Evan Gappelberg: These services are extremely valuable. They're part of the technology that we're selling. And again, we don't think that the company's getting the proper valuation for its suite of 3D AI technologies that it's been pioneering. If you look at our platforms, we've seen notable growth in 2023, up over 50 percent over 2022 in our top line revenue. Most of that growth is tied to partnerships with major entities like Amazon and other significant platforms.
Speaker Change: Sure.
Speaker Change: Extremely valuable they're part of our technology that we're selling and again, we don't think that.
Speaker Change: The companys getting the proper valuation for its suite of three D. AI.
Speaker Change: Technologies that its been pioneer.
Speaker Change: Pioneering.
Speaker Change: If you look at our.
Speaker Change: Our platforms, we've seen notable growth in 2023 up over 50% over 2022, and our topline revenue most of that growth is tied to partnerships with major entities like Amazon and other significant.
Speaker Change: Platforms, we are positioning with new partnerships.
Evan Gappelberg: We are positioning with new partnerships, which we think will position the company for future growth and provide substantial returns to investors. So it is always Amazon that's, you know, that's our key account, but we have other key accounts that are quite significant that we are working on closing.
Speaker Change: Which we think will position the company for future growth.
Speaker Change: And provide substantial returns to investors. So it is always the Amazon.
Speaker Change: That's all.
Speaker Change: Our key key account, but we have other key accounts that are quite significant that we are working on closing.
Evan Gappelberg: Beyond Amazon, beyond our operating business, we also have investments in subsidiaries. We have major financial equity in Toggle and in ARWay. We own 26 million shares combined, which are currently worth, as of the close of trading today, $5.1 million in equity. So if you look at our current market cap, I'm talking about NexTech, at these very, very depressed prices, you have a company that clocked in at five million in revenue, and we have about five million in equity. You know, if you look at our market cap, uh, something's wrong. It's so undervalued.
Speaker Change: Amazon beyond.
Speaker Change: Our operating business.
Speaker Change: We also have investments in subsidiaries we have.
Speaker Change: Major financial equity.
Speaker Change: In cargo and in a way we owned 26 million shares combined which are currently worth as of the close of trading today five $1 million in equity.
Speaker Change: So if you look at our current market cap.
Speaker Change: Looking about next tech at these very very depressed prices.
Speaker Change: You have a company that clocked in at $5 million in revenue and we have about $5 million.
Speaker Change: In.
Equity.
Speaker Change: Yes.
Speaker Change: If you look at our market cap.
Speaker Change: Something is wrong.
Speaker Change: So undervalued.
Evan Gappelberg: It borders on the absurd, but that's the small cap market. If you look at our shares for services program, I wanna highlight that for our investors because I think it's misunderstood and I also think our investors don't understand how valuable that is. The program has been a huge success.
Speaker Change: It borders on the absurd, but thats the small cap market.
Speaker Change: If you look at our.
Speaker Change: Shares for services program I want to highlight that.
Speaker Change: For our investors because I think it's misunderstood and I also thank our investors.
Speaker Change: I don't understand how valuable that is the program has been a huge success the program, which involves compensating employees and service providers with company shares instead of cash has been massively successful.
Evan Gappelberg: The program, which involves compensating employees and service providers with company shares instead of cash, has been massively successful, and it has succeeded, in Nextech, not needing to raise additional capital. And that will continue as long as our share for services program continues until the company goes cash flow positive. So let me reiterate. We have been extremely successful with our Shares for Services program. It's working. It's working well. It will continue to work as long as it is working.
Speaker Change: <unk> has succeeded.
Speaker Change: And next tech not needing to raise additional capital.
Speaker Change: And that will continue.
Speaker Change: As long as our shares for services continues until the company goes cash flow positive.
Speaker Change: Let me reiterate.
We have been extremely successful with our shares for services program.
Speaker Change: It's worked it's working it will continue to work as long as it continues to work.
Evan Gappelberg: We will not be. Raising capital I've been offered, anywhere from $5 to $15 million in investments in the last couple of months, and I have turned them down. Why?
Speaker Change: We will not be <unk>.
<unk> capital I've been offered.
Speaker Change: Anywhere from $5 million to $15 million of investments in the last couple of months and I have turned them down.
Speaker Change: Hi.
Evan Gappelberg: Because our Shares for Services program is working. So, we are not raising capital, and that's evidenced by the fact that I'm turning down capital raises at this juncture. So, that's good news for shareholders, because I know that's always a hot topic. So if you look at sustainable financing, that's what Shares for Services represents.
Speaker Change: Because our shares for services program.
Speaker Change: Is working.
Speaker Change: So we are not raising capital and thats evidenced by the fact that I am turning down.
Speaker Change: Capital raises at this juncture so.
Speaker Change: That's good news for shareholders.
Speaker Change: Because I know that's always a hot topic. So if you look at sustainable financing that's what the shares for services represents <unk>.
Evan Gappelberg: The ongoing success of the Shares for Services program suggests that the company might be able to avoid traditional capital raising indefinitely and to continue to fund operations through this approach until we go cash flow positive, which we expect to happen later this year. Further support from investors. We have some long-term investors who are prepared to support the company financially by buying potential non-core assets for cash from the company. So, you know, there's even additional cash on the sidelines.
Speaker Change: <unk> success is the share services program suggests that the company might be able to avoid traditional capital raisings indefinitely and to continue to fund operations through this approach until we go cash flow positive, which we expect it to happen.
Speaker Change: Later this year.
Speaker Change: Further support from investors, we have some long term investors who are.
Speaker Change: Prepared to support the company financially by buying potential.
Speaker Change: Noncore assets.
Speaker Change: Cash.
Speaker Change: The company so there's even additional cash on the sidelines if the company wants to sell some of its non core assets.
Evan Gappelberg: If the company wants to sell some of its non-core assets, it has some investors that are willing to put cash in and do that. So, if you look at, you know, if you think about what I'm describing, we've really reduced the financial risk of Nextech by minimizing the need for external financing. The company lowers its financial risk and increases its operational stability.
Speaker Change: It has some investors that are willing to.
Speaker Change: Put cash in it and.
Speaker Change: Do that so.
Speaker Change: If you look at.
Speaker Change: What do you think about what I'm describing.
Speaker Change: Really reduced the financial risk of next tech by minimizing the need for external financing the company lowers its financial risk and increases its operational stability. So even though if you look at our balance sheet you look at our bank account.
Evan Gappelberg: So, even though if you look at our balance sheet, you look at our bank account, it's not a lot of cash. But we're operating, we're paying our bills, and we're able to continue to sustain our business and grow our business in this current market without having to go to the market for capital raises.
Speaker Change: Not a lot of cash.
But we're operating we're paying our bills and we're able to continue to sustain our business and grow our business.
Speaker Change: In this current market without having to go to the market for.
Speaker Change: Capital raises so.
Evan Gappelberg: If you look at, you know, our company. $5 million in revenue this year. We're going profitable with our 3D modeling business. Cash flow positive already, Q2. And if you look at 2024, Amazon still represents a huge opportunity, but we have lots of opportunity for growth with other enterprise companies and platforms that we're currently working with, have NDAs with, are doing POCs with, and we expect to have some of these contracts land in the near term, although they do take a lot of time to actually close.
Speaker Change: If you look at it.
Speaker Change: Our company.
Speaker Change: $5 million in revenue this year.
Speaker Change: We're going profitable with our <unk> modeling business.
Speaker Change: Cash flow positive already in Q2, and if you look at.
Speaker Change: 2024.
Speaker Change: Amazon still represents a huge opportunity, but we have lots of opportunity for growth with other enterprise companies and platforms that we're currently.
Speaker Change: Working with <unk> with our doing.
Speaker Change: POC is with and we expect to.
Speaker Change: Perhaps some of these contracts land.
Speaker Change: In the near term, although they do take a.
Speaker Change: A lot of time to actually close it's just the way big companies work I thought we would have them closed in Q1.
Evan Gappelberg: It's just the way big companies work. I thought we would have them closed in Q1. They're rolling into Q2. It's not uncommon, but that is essentially what is happening at our company. So with that, I'm going to turn it back to the moderator.
Speaker Change: They are rolling into Q2, it's not uncommon.
Speaker Change: But that is essentially what is happening at our companies.
Speaker Change: So with that I'm going to turn it back to.
Speaker Change: The moderator.
Speaker Change: If you would like to ask a question. Please press star one on your telephone keypad. If you would like to withdraw your question again press Star one.
Operator: If you would like to ask a question, please press star 1 on your telephone keypad. If you would like to withdraw your question, again press star 1. Your first question comes from Scott Buck from H. C. Wainwright. Please go ahead.
Speaker Change: Last question comes from Scott Buck from H C. Wainwright. Please go ahead.
Scott Buck: Hey, Kevin Nice too nice to catch up.
Scott Buck: Hey Evan, nice to catch up. I just want to ask about some of the potential licensing opportunities. I know there was a release put out earlier this year that you guys may be close to something. Just curious if you could kind of walk us through the mechanics of how a deal like that could potentially be structured.
Just wanted to ask about some of the potential licensing opportunities I know there was or at least put out earlier this year.
You guys may be close to something just curious if you could kind of walk us through the mechanics of how a deal like that could potentially be structured.
Speaker Change: Sure. So how are you doing Scott good good to hear your voice.
Evan Gappelberg: Sure. So, how are you doing, Scott? It's good to hear your voice.
Evan Gappelberg: So our technology, this is primarily the CAD to 3D toggle platform that we have been negotiating and working with large enterprises where we would license the tech to them. They would essentially pay us a usage fee on a monthly basis, and they would turn their CAD files, these are equipment manufacturers, into 3D models on the platform and then texture them, and then use our photography studio to take pictures and publish them to the web.
So our technology. This is primarily the CAD.
Speaker Change: To three D.
Scott Buck: Cargo platform that we have been negotiating and working with large enterprises, where we license the tech to them they would essentially pay us.
Scott Buck: You see a usage fee on a monthly basis and they would turn their CAD files. You know these are equipment manufacturers.
<unk> models on the platform and then texture. It and then use our photography studio to take pictures publish it to the web.
Evan Gappelberg: Then they would also use it for hosting, for tracking the data, and for analytics, and so it's kind of this CAD, the 3D, very easy-to-use platform that we're seeing a lot of interest in across, you know, multiple industries, including jewelry, industrial manufacturing, and a bunch of others. Even consumer product goods companies are looking at it for rapid prototyping, where they might have boxes of cereal or boxes of mac and And in different parts of the world, those boxes have different labels on them.
Scott Buck: And then they would also use it for hosting.
Scott Buck: We're tracking the data and analytics and so it's kind of this.
Scott Buck: Chad.
Scott Buck: <unk>, the very easy to use.
Scott Buck: Platform that we're seeing a lot of interest in.
Scott Buck: Across multiple industries, including jewelry.
Scott Buck: Industrial manufacturing and a bunch of others, even consumer product goods.
Scott Buck: Denise.
Scott Buck: We are looking at it for rapid prototyping, where they might have boxes of cereal or boxes of Mac and cheese and in different parts of the world those boxes have different <unk>.
Scott Buck: <unk> on it.
Evan Gappelberg: And so, we would make the 3D model, and then they would be able to..., you know, transfer it throughout the globe by just changing the text on the 3D model and then, you know, have these prototypes, essentially. So that's kind of the use case, Scott.
Scott Buck: So we would make the <unk> model and then they would be able to.
Scott Buck: They would be able to.
Scott Buck: Transfer it throughout the globe.
Scott Buck: Just changing.
Scott Buck: The text on the <unk> model and then you have these prototypes essentially so that's kind of the use case Scott.
Speaker Change: I appreciate that that's helpful. And then second I wanted to ask about revenue cadence through 'twenty four I assume we're still.
Scott Buck: I appreciate that. That's helpful. And then second, I want to ask about revenue cadence through 24. I assume we're still, you know, kind of largely dependent on delivery schedules, but if there's any color you can provide there, I think that would be helpful.
Speaker Change: Kind of largely dependent on delivery schedules, but if theres any.
Color you can provide there I think that'd be helpful.
Speaker Change: Yes, so right now we are built for scale.
Evan Gappelberg: Yeah, so right now we're built for scale. We can produce for these large enterprise customers, and again, licensing the tech means they're actually producing the 3D models. They're loading the CAD file onto our platform, and it outcasts the 3D model. It's pretty instant, and then they point and click on the texture, or the color that they want.
Speaker Change: We we can produce for these large enterprise customers and again licensing the tech means they're actually producing.
Speaker Change: The three D models, they are loading the CAD file onto our platforms and out Pops. The <unk> model, it's pretty instant and then they point and click.
Speaker Change: The texture of the color.
Speaker Change: That they want and so we have the ability to license our tech to scale it.
Evan Gappelberg: And so we have the ability to license our tech, to scale it. Things are taking a little longer, but we are heavy in negotiations, and nobody's walking away from the table. It's just driving through NDAs, and then testing phases, and then legal, and then it goes to the innovation department, and it goes to someone who's on vacation. You wouldn't believe how long it takes to land these deals. But, you know, even with Amazon, Scott, when we first started, we had almost six months of testing, six months before they actually signed the contract.
Speaker Change: Things are taking a little longer but we are heavy in in negotiations.
Nobody's walking away from the table.
Speaker Change: Driving through NDA is in the testing phases, and then legal and dose of the innovation Department and it goes.
Speaker Change: Someone who is on vacation.
Speaker Change: How long it takes to land these deals but.
Speaker Change: Even with Amazon Scott when we first started we had.
Speaker Change: Almost six months of testing.
Speaker Change: Six months before they actually sign the contract.
Speaker Change: <unk>.
Evan Gappelberg: So that's just, you know, par for the course in 2024. It's kind of steady as it goes with our business and our revenue, but these big deals are going to be the thing that really moves the needle.
Speaker Change: Just par for the course in 2024.
Speaker Change: It's kind of steady as she goes with our business and our revenue, but these big deals are going to be the thing that really moves the needle.
Speaker Change: Yes, no. That's helpful. And then last one from me even just on the Opex for 'twenty four.
Scott Buck: Yeah, no, that's helpful. And then last one for me, Evan, just on OPEX for 24. I assume you guys are able to scale the business at operating expense levels that are fairly close to where you are today. Or do you need a meaningful amount of investment in either R&D or sales and marketing in 24 to support this growth?
Speaker Change: I assume you guys are able to scale the business at.
Speaker Change: Operating expense levels that are fairly close to where you are today.
Speaker Change: Or do you need.
Speaker Change: A meaningful amount of investment in either R&D or sales and marketing and in 24 to support this growth.
Speaker Change: We've actually sunk all of our money in 2000 22003, we put tens of millions of dollars in to building the tech and the team and so we do not foresee.
Evan Gappelberg: We've actually sunk all of our money in for 2022-2023. We put tens of millions of dollars in to building the tech and the team, and so we do not foresee it going down. In fact, it's going down because we continue to, you know, use our Indian resources when we need any new resources. So if you think about that equation, the cost of these resources in India is like 90% less than North America. So we're selling our goods and services in markets where the price is high, and then our cost is quite low.
Speaker Change: Yes.
Speaker Change: In fact Opex expenses in fact, it's going down because we continue to.
Speaker Change: User India resources, when we need any any new resources. So if you think about that equation the cost.
Speaker Change: These resources in India are like 90% less than North America. So we're selling our goods and services in markets, where the price is higher than our cost is.
Quite low.
Scott Buck: That's helpful. It sounds like we should see some real operating leverage as we move through the year. Appreciate the time and look forward to catching up again in a few weeks for the first quarter.
Speaker Change: That's helpful. It sounds like we should see some some real operating leverage as we move through the year I appreciate the time.
Speaker Change: And look forward to catching up again in a few weeks for the first quarter.
Speaker Change: Thanks Scott.
Operator: Evan, I'll turn it back to you for your closing remarks.
Speaker Change: And then I will turn it back to you for closing remarks.
Speaker Change: Alright.
Evan Gappelberg: All right, in conclusion. Investing in Nextech or one of our subsidiary companies, Congo or ARWay, is investing in innovative, early-stage startups. These startups have moonshot potential in emerging industries like 3D, AI, augmented reality, and spatial computing. All of which.
Speaker Change: <unk>.
Speaker Change: Investing in next tech or one of our subsidiary company cargo.
Speaker Change: Hey.
Speaker Change: He's investing in innovative early stage startups.
Speaker Change: These startups have moon shot potential.
Speaker Change: In emerging industries.
Speaker Change: Like three D.
Speaker Change: Like AI like augmented reality and spatial computing.
Speaker Change: All of which.
Evan Gappelberg: According to Gartner and others, they have multi-billion dollar market potential. I remain committed to increasing shareholder value. It has definitely taken longer than expected. Interest rates, the pandemic, these are all things that are not in my control.
Speaker Change: According to Gartner and others have multibillion dollar market potential.
Speaker Change: I remain committed to increasing shareholder value.
Speaker Change: It has definitely taken longer than expected.
Speaker Change: Interest rates.
Speaker Change: The pandemic.
Speaker Change: These are all things that are not in my control.
Speaker Change: And as of right now.
Evan Gappelberg: And as of right now, our business is ready to scale, it's clear to me, and our team is in place. So it's not a matter of if, it's just a question of when. When will these big deals land? AI has the potential to drive our business forward to new heights. With our growing patent portfolio and our growing product portfolio of AIGPT products, we are well positioned to surprise investors on the upside.
Our business is ready to scale it is clear to me.
Speaker Change: Our tech.
Speaker Change: And our team.
Speaker Change: He is in place so it's not a matter.
Speaker Change: If it's just a question of win win.
Speaker Change: When will these big deals land.
Speaker Change: AI has the potential to drive our business forward to new Heights.
With our growing patent portfolio.
Speaker Change: And our growing product portfolio of AI GPT products, we are well positioned surprised investors to the upside.
Evan Gappelberg: We are very undervalued, in my opinion, and I think that long-term investors that are still invested will be rewarded. We are working with some of the biggest companies and brands around the globe, including the largest e-commerce company on the planet, including the largest car rental company in South America, including the largest consumer packaged goods company, and many other large companies that we would hope to be able to announce soon. These big accounts represent the future potential growth of our business revenue. Again, it takes time. It takes patience.
Speaker Change: Very undervalued in my opinion.
Speaker Change: I think that long term investors.
Speaker Change: That are still invested.
Speaker Change: We'll be rewarded we are working with some of the biggest companies.
Speaker Change: And brands around the globe, including the largest E Commerce company on the planet.
Including the largest car rental company.
Speaker Change: And South America, including the largest consumer package good company.
Speaker Change: And many other large companies that we would hope to be able to announce soon.
Speaker Change: These.
Speaker Change: Companies. These big accounts represent the future potential growth of our business revenue again, it takes time it.
Speaker Change: It take patients we built the tech.
Evan Gappelberg: We've built the tech. It is pioneering technology, and we are focused on monetizing that. We've gotten our costs down, and now it's just a question of when we get a signed contract, and then it's off to the races. I want to thank our investors for staying steadfast. And I do believe that there's going to be a reward.
Speaker Change: It is pioneering technology and we are focused on monetizing that we've gotten our costs down.
Speaker Change: And now it's just a question of when we get a signed contract.
Speaker Change: And then it's off to the races I wanted to thank our investors for.
Speaker Change: Sure.
Speaker Change: Dane steadfast.
Speaker Change: And I do believe that there's going to be a reward.
Speaker Change: Thank you.
Operator: This concludes today's conference call. Thank you for your participation, and you may now disconnect.
Speaker Change: This concludes today's conference call. Thank you for your participation and you may now disconnect.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
[music].
Speaker Change: Thanks.