Le Lézard
Classified in: Science and technology, Business
Subjects: EARNINGS, Conference Call, Webcast

Nextech AR Solutions Corp. Reports Q2 Results Showing Continued Record Growth in 3D Modelling for Ecommerce and Web3.0 Business


Nextech AR Solutions Corp. ("Nextech"or the "Company") (OTCQB: NEXCF) (CSE: NTAR) (FSE: N29) reports its financial and operating results for the second quarter 2022 ending June 30, 2022.

Subsequently, Nextech will host a conference call to discuss the results today, August 18, 2022 at 5:00 P.M. Eastern Time. Please join Evan Gappelberg, Chief Executive Officer and Andrew Chan, Chief Financial Officer to discuss these financial and operating results.

2022 Q2 Financial Highlights:

Q3 Outlook:

Management changes effective as of 8/19/2022:

Paul Duffy will be stepping down from the board of directors of Nextech AR and transitioning from President to the Chief Metaverse Officer for ARway. We sincerely thank Paul for all his dedication and hard work as both a board member and President at Nextech AR and look forward to his new and exciting role at ARway, where we are confident that he will be adding tremendous shareholder value.

Evan Gappelberg will remain CEO and will be taking on the additional role of Chairman of the Board for Nextech AR.

Ori Inbar is leaving his role as a director of Nextech to pursue other activities in the Metaverse and we thank him for his contributions and wish him all the best. The Company currently has no plans to replace him on the board.

NexTech AR Solutions Corp.

Condensed Consolidated Interim Statements of Financial Position

(Expressed in Canadian dollars)

(Unaudited)

 
As at

June 30, 2022

December 31, 2021

Assets
 
Current assets
Cash & cash equivalents

$

7,063,268

 

$

7,237,296

 

Receivables (Note 4)

 

418,792

 

 

1,081,164

 

Deferred asset (Note 7)

 

153,185

 

 

-

 

Contract asset (Note 13)

 

193,635

 

 

386,202

 

Prepaid expenses (Note 5)

 

532,169

 

 

749,474

 

Inventory (Note 6)

 

2,366,759

 

 

3,389,098

 

 

10,727,808

 

 

12,843,234

 

Non-current assets
Equipment (Note 8)

 

371,603

 

 

377,242

 

Right-of-use asset (Note 9)

 

967,529

 

 

1,079,319

 

Intangible assets (Note 10)

 

4,560,991

 

 

6,419,934

 

Goodwill (Note 10)

 

6,783,493

 

 

8,790,529

 

Total assets

$

23,411,424

 

$

29,510,258

 

 
Liabilities and Shareholders' Equity
 
Current liabilities
Accounts payable and accrued liabilities (Note 11)

$

2,649,937

 

$

2,759,017

 

Deferred revenue (Note 14)

 

422,140

 

 

609,001

 

Lease liability (Note 9)

 

273,974

 

 

290,357

 

 

3,346,051

 

 

3,658,375

 

Non-current liabilities
Lease liability (Note 9)

 

683,759

 

 

786,755

 

Deferred income tax liability

 

492,242

 

 

712,215

 

Loan payable

 

78,521

 

 

90,896

 

Total liabilities

 

4,600,573

 

 

5,248,241

 

 
Shareholders' Equity
Share capital (Note 12)

 

80,352,960

 

 

70,570,760

 

Reserves

 

12,150,387

 

 

10,671,525

 

Accumulated other comprehensive income

 

1,963,337

 

 

1,978,469

 

Deficit

 

(75,655,833

)

 

(58,958,737

)

 

18,810,851

 

 

24,262,017

 

Total liabilities and shareholders' equity

$

23,411,424

 

$

29,510,258

 

NexTech AR Solutions Corp.

Condensed Consolidated Interim Statements of Comprehensive Loss

(Expressed in Canadian dollars)

(Unaudited)

 
Three months ended Three months ended Six months ended Six months ended
June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021
Revenue (Note 14)

$

3,234,735

 

$

6,091,552

 

$

6,719,072

 

$

13,818,255

 

Cost of sales (Note 15)

 

(1,546,479

)

 

(3,798,987

)

 

(3,547,416

)

 

(8,211,265

)

Gross profit

 

1,688,256

 

 

2,292,565

 

 

3,171,656

 

 

5,606,990

 

 
Operating expenses:
Sales and marketing (Note 15)

 

1,827,030

 

 

4,047,840

 

 

4,443,978

 

 

9,135,329

 

General and administrative (Note 15)

 

4,503,273

 

 

3,418,151

 

 

8,323,873

 

 

6,179,373

 

Research and development (Note 15)

 

880,272

 

 

1,330,534

 

 

1,907,466

 

 

3,525,491

 

 

7,210,575

 

 

8,796,525

 

 

14,675,317

 

 

18,840,193

 

 
Other expense (income)
Stock-based compensation (Note 12)

 

878,286

 

 

556,415

 

 

1,457,091

 

 

2,959,043

 

Amortization (Note 10)

 

750,429

 

 

179,378

 

 

1,478,807

 

 

593,909

 

Right of use amortization (Note 9)

 

63,770

 

 

45,011

 

 

126,852

 

 

79,322

 

Gain on short-term investments

 

-

 

 

-

 

 

-

 

 

(219,321

)

Gain on contingent consideration

 

-

 

 

(1,516,048

)

 

-

 

 

(1,516,048

)

Depreciation (Note 8)

 

37,124

 

 

32,085

 

 

74,241

 

 

60,035

 

Impairment of intangible assets (Note 10)

 

2,702,313

 

 

-

 

 

2,702,313

 

 

-

 

Foreign exchange gain (loss)

 

(845,966

)

 

52,877

 

 

(399,340

)

 

(118,377

)

 

3,585,956

 

 

(650,282

)

 

5,439,964

 

 

1,838,563

 

 
Loss before income taxes

 

(9,108,275

)

 

(5,853,678

)

 

(16,943,625

)

 

(15,071,766

)

Current income tax expense

 

(7,128

)

 

-

 

 

(14,256

)

 

-

 

Deferred income tax recovery

 

121,852

 

 

-

 

 

260,785

 

 

-

 

Net loss from operations

$

(8,993,551

)

$

(5,853,678

)

$

(16,697,096

)

$

(15,071,766

)

 
Other comprehensive income (loss)
Exchange differences on translating foreign operations

 

9,555

 

 

(65,056

)

 

(15,132

)

 

(117,458

)

Total comprehensive loss

$

(8,983,996

)

$

(5,918,734

)

$

(16,712,228

)

$

(15,189,224

)

 
Loss per common share
Basic and diluted loss per common share

 

(0.09

)

 

(0.07

)

 

(0.17

)

 

(0.19

)

Weighted average number of common shares outstanding Basic and diluted

 

99,725,256

 

 

81,276,585

 

 

98,736,780

 

 

79,346,880

 

NexTech AR Solutions Corp.

Condensed Consolidated Interim Statements of Cash Flows

(Expressed in Canadian dollars)

(Unaudited)

 
Three months ended Three months ended Six months ended Six months ended
June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021
Cashflows from operating activities
Net loss

$

(8,993,551

)

$

(5,853,678

)

$

(16,697,096

)

$

(15,071,766

)

 
Items not affecting cash
Amortization of intangible assets

 

750,429

 

 

179,378

 

 

1,478,807

 

 

593,909

 

Impairment of intangible assets and goodwill

 

2,702,313

 

 

-

 

 

2,702,313

 

 

-

 

Deferred income tax recovery

 

(121,852

)

 

-

 

 

(260,785

)

 

-

 

Amortization of right to use asset

 

63,770

 

 

45,011

 

 

126,852

 

 

79,322

 

Depreciation of property and equipment

 

37,124

 

 

32,085

 

 

74,241

 

 

60,035

 

Gain on digital assets

 

-

 

 

-

 

 

-

 

 

(219,321

)

Gain on contingent consideration

 

-

 

 

(1,516,048

)

 

-

 

 

(1,516,048

)

Shares for services

 

148,500

 

 

(22,156

)

 

865,566

 

 

1,299,846

 

Stock-based compensation

 

878,286

 

 

556,415

 

 

1,457,091

 

 

2,959,043

 

 
Changes in non-cash working capital balances
Receivables

 

600,222

 

 

997,883

 

 

662,372

 

 

214,478

 

Deferred asset

 

(153,185

)

 

-

 

 

(153,185

)

 

-

 

Contract asset

 

(68,653

)

 

22,853

 

 

192,567

 

 

(92,729

)

Prepaid expenses

 

362,636

 

 

437,732

 

 

217,305

 

 

47,525

 

Inventory

 

160,434

 

 

606,386

 

 

1,022,339

 

 

(855,834

)

Accounts payable and accrued liabilities

 

739,778

 

 

(1,543,259

)

 

(109,080

)

 

(94,299

)

Deferred revenue

 

(200,758

)

 

246,841

 

 

(186,861

)

 

1,056,888

 

Net cash used in operating activities

$

(3,094,507

)

$

(5,810,557

)

$

(8,607,554

)

$

(11,538,951

)

 
Cashflows from investing activities
Purchase of equipment

 

(37,485

)

 

(60,505

)

 

(84,038

)

 

(110,919

)

Proceeds from sale of digital assets

 

-

 

 

-

 

 

-

 

 

2,765,356

 

Interest on lease liability

 

(6,890

)

 

-

 

 

(13,602

)

 

-

 

Net cash provided by (used in) investing activities

$

(44,375

)

$

(60,505

)

$

(97,640

)

$

2,654,437

 

 
Cashflows from financing activities
Proceeds from exercise of options and warrants

 

-

 

 

800,184

 

 

-

 

 

1,292,948

 

Proceeds from private placement, net of issuance costs

 

1,910

 

 

12,632,937

 

 

8,938,406

 

 

12,632,937

 

Payment of lease obligations

 

(74,369

)

 

(91,212

)

 

(147,767

)

 

(135,779

)

Net cash provided by (used in) financing activities

$

(72,459

)

$

13,341,909

 

$

8,790,639

 

$

13,790,106

 

 
Change in cash during the period

 

(3,211,341

)

 

7,470,847

 

 

85,445

 

 

4,905,592

 

Cash, beginning of period

 

10,781,775

 

 

7,900,016

 

 

7,237,296

 

 

10,684,952

 

Effects of foreign exchange on cash

 

(507,166

)

 

24,142

 

 

(259,473

)

 

(195,539

)

 
Cash, end of period

$

7,063,268

 

$

15,395,005

 

$

7,063,268

 

$

15,395,005

 

 
Supplemental cash flow information
Taxes paid

 

21,571

 

 

8,967

 

 

21,571

 

 

8,967

 

Interest paid

 

8,308

 

 

6,014

 

 

17,857

 

 

7,275

 

Interest received

 

27,498

 

 

12,171

 

 

39,329

 

 

21,470

 

Conference Call Details:

Please join Evan Gappelberg, Chief Executive Officer and Andrew Chan, Chief Financial Officer to discuss these financial and operating results, followed by a question and answer period.

Title: Nextech AR Solutions Corp. Announces Second Quarter 2022 Earnings & Conference
Call Date: Thursday August 18, 2022
Time: 05:00 PM (GMT-04:00) Eastern Time (US and Canada)
Toll Free Dial-In Number: 1 (888) 330-2024
International Dial-In Number: 1 (646) 960-0187

Conference ID: 7778367
Webcast Link: https://events.q4inc.com/attendee/572595313

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

To learn more, please follow us on Twitter, YouTube, Instagram, LinkedIn, and Facebook, or visit our website: https://www.Nextechar.com.

On behalf of the Board of Nextech AR Solutions Corp.
Evan Gappelberg
CEO and Director

About Nextech AR

Nextech AR Solutions is the engine accelerating the growth of the metaverse. Using breakthrough AI, Nextech AR is able to quickly, easily and affordably ARitize (transform) vast quantities and varieties of existing assets at scale making products, people and places ready for interactive 3D use, giving creators at every level all the essential tools they need to build out their digital AR vision in the metaverse. Our platform-agnostic tools allow brands, educators, students, manufacturers, creators, and technologists to create immersive, interactive and the most photo-realistic 3D assets and digital environments, compose AR experiences, and publish them omnichannel. With a full suite of end-to-end AR solutions in 3D Commerce, Education, Events, and Industrial Manufacturing, Nextech AR is in a unique position to meet the needs of the world's biggest brands and all metaverse contributors.

Nextech funds the development of its AR and metaverse growth initiatives through its e-Commerce platforms, which currently generate most of its revenue. Nextech's e-commerce platforms include vacuumcleanermarket.com ("VCM"), infinitepetlife.com ("IPL") and Trulyfesupplements.com ("TruLyfe"). VCM and product sales of residential vacuums, supplies and parts, and small home appliances sold on Amazon. These e-commerce platforms serve as an incubator for developing and testing Nextech's leading-edge AR, AI and machine learning applications for powering next-generation e-commerce technology.

Forward-looking Statements

The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, "will be" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements regarding the completion of the transaction are subject to known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove to be accurate, as future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Nextech will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.


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News published on 18 august 2022 at 16:35 and distributed by: