Earlier this week Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) CEO Evan Gappelberg talked with Proactive about a pivotal new enterprise contract that marks a turning point for the company's AI-driven 3D modeling business.
The agreement involves the production of 5,000 3D models over 60 days, with expectations to scale up to over 100,000 models in the coming months. Gappelberg noted this could generate between $1.5 million and $2 million in revenue from a single customer.
Gappelberg also reflected on the company’s challenging journey over the past seven years, highlighting how early market entry and macroeconomic headwinds delayed adoption. However, the company’s persistence in AI and 3D modeling investments is now paying off.
Proactive: You've just signed a new enterprise contract for high-volume, AI-driven 3D model production. Tell us more about the deal and where it's headed.
Evan Gappelberg: This is a pivotal contract. We're going to be creating 5,000 3D models over the next 60 days. But what's most exciting is that this is really just the tip of the iceberg. After those initial 5,000 models, we’ll be moving into high-volume production—over 100,000 3D models in just a few months.
That represents about $1.5 to $2 million in new revenue from just one customer. And they’re not alone—there are more deals in the pipeline. This is our biggest deal by far, and today’s news is a strong indication of the momentum building in our 3D modeling business.
You described this as a pivotal contract. What might it lead to, and what other kinds of contracts are you looking at?
With large enterprise contracts, it’s common for companies to start with a test to ensure you can handle high-volume production. That’s exactly what happened with Amazon when we started working with them. But this deal is even bigger.
This customer isn't an e-commerce retailer—they supply visualization software to e-commerce retailers. Multiple retailers use their platform, and that platform requires 3D models to function. So this could extend for years and become a massive, long-term deal. We’re very excited. Integration is already underway, and we expect to be in production any day now.
Could this open up new revenue streams for Nextech?
Absolutely. We're highlighting the 3D modeling revenue today, and there’s more coming. We have another customer evaluating a project involving 60,000 3D models. To put this in perspective—it took us three years to produce 100,000 models. Now we’re on track to do even more than that within the next 12 months. It could potentially double or triple that volume.
This really signals to our investors that the turnaround is here, and it's becoming a very exciting time for us.
So the turnaround is here. Why has the road been so tough?
It hasn’t been smooth sailing. Looking back, especially over the last three years, it’s been a long and challenging journey—seven years in total. We invested heavily in groundbreaking AI and 3D modeling technologies. But the reality is, we were early—too early for the market.
Big tech players like Shopify, Google, and Apple also anticipated mass adoption of 3D models years ago. But it didn’t materialize. The infrastructure for spatial computing, 3D commerce, and AI visual tools just wasn’t ready.
Even though we made substantial investments in people, platforms, patents, and partnerships—including with Amazon—the macroeconomic headwinds tested everyone’s patience. At our peak, our valuation was in the hundreds of millions. At the bottom, we were nearly written off. But we didn’t quit—and now the turnaround is finally happening.
So what’s the strategy going forward?
As we've communicated to shareholders, we made some tough but smart decisions. Our first priority in 2023 was reducing our annual burn—from $27 million down to just $500,000. That’s a 98% reduction.
We consolidated operations and focused on cash-efficient execution. We doubled down on AI because we believe it’s the key to scaling. We also cut out distractions—other side ventures—and returned to our core: 3D modeling, spatial computing, and scalable SaaS.
Today, AI handles 70% of the work involved in producing a 3D model, and it’s only getting better—faster, cheaper, and more scalable. That original vision is now paying off. We’ve also restructured our platform to deliver 95% gross margins on our Map Dynamics business. Our 3D modeling margins range between 70% and 80%, which is very healthy.
With all that momentum, what kind of news should investors expect next?
The momentum means big wins. In June alone, we announced this 5,000-model contract. Just a couple of weeks ago, we landed a 2,000-model contract—another six-figure deal.
Investors should look ahead to Phase Two: 100,000 additional 3D models, representing $1.5 to $2 million in revenue from just one customer. Their visualization software is licensed by some of the world’s largest retailers—not just one, but many. And they all need 3D models for the software to function. Nextech is part of that supply chain.
This deal is bigger than the Amazon contract we once thought was our largest. And we’re working with others too. That’s what makes this so exciting.
Have you managed to maintain your early-mover advantage?
That’s a great question. We were early—too early. But many of our competitors who were also early didn’t make it. They've gone out of business.
So now, the advantage isn’t just being first—it’s having survived. That gives us a major edge as we look to thrive in 2025 and beyond. Our goals are clear: reach cash flow break-even as 3D model production ramps up—from 5,000 to 75,000 to 100,000 units.
We plan to enhance our AI photography and digital twin tech, and increase recurring revenue through our 3D model hosting cloud. Our Map Dynamics platform is also scaling toward a $5–10 million business with 95% gross margins. We've introduced new features like attendee tracking, ticketing, AI matchmaking, and lead retrieval—driving growth beyond just 3D.
Looking ahead to 2026, we expect to be cash flow positive and potentially reporting profits—with real earnings and real net income that drive shareholder value.
With Nextech firmly back on track, any final thoughts?
On a personal note—I’ve given the last seven years of my life to this company. I’ve taken shares instead of salary and kept us afloat when many others walked away. This past year was especially tough.
But I’m lucky to have an incredible team that never gave up. They leaned in when most would’ve checked out. And when a team leans in, magic happens. I saw that firsthand in sports—like the 2007 Super Bowl when the Giants beat the undefeated Patriots with that iconic Tyree catch. It was a team win.
That’s how I feel about Nextech right now. We’re turning things around. Even when the stock didn’t reflect it, I always believed in our future. I understand why some investors left—but this is not 2022 or 2023. This is 2025.
The technology we dreamed of is now real. The demand is here. The business model is scalable and profitable. We didn’t just survive—we’re ready to win. And I invite our shareholders to rejoin us before the market catches up. Because we’re just getting started.
Quotes have been lightly edited for style and clarity