Nextech AR Solutions Corp has announced the closing of multiple new 3D modeling deals for eCommerce, providing the company with a continually growing base of ARR (annual recurring revenue) and MRR (monthly recurring revenue).
The company noted that AR and 3D models have been proven to increase sales, decrease product returns, and improve advertising results, leading to potentially billions of dollars in value, and bottom-line impact for the company's global brand clients which include Kohl’s, CB2, Crate and Barrel, NAPA Auto Parts and many others.
In a statement Nextech AR CEO, Evan Gappelberg commented: “We are continuing to see strong growth in our ARitize 3D offering throughout Q2 and expect an acceleration in Q3 and Q4. Our continued growth, accelerating transformation and penetration into the trillion-dollar eCommerce industry is evident by our expansion into new product categories, and by our ability to consistently sign new 12-month+ 3D modeling contracts while simultaneously renewing contracts with existing clients who are requesting even more 3D models."
READ: Nextech AR says transformation positions it for next level of growth in Web 3.0
He continued: “More and more companies and brands within the eCommerce ecosystem are recognizing the obvious benefits and ROI of our ARitize 3D product offering. We firmly believe that the transition from flat 2D photos to 3D models is now in full swing and that 3D models are currently being established as the standard in eCommerce throughout the globe. The June 9th, 2022 blockbuster news that Amazon (which has 350 million products) is now offering a shoe 'try on' in AR supports our view as 'All the brands' announced including New Balance, adidas, Reebok, Puma, Superga, Lacoste, Asics, and Saucony shoes will need to be converted into a 3D models to be used in Amazon’s 'try on' which is creating more and more demand for our ARitize 3D services”.
Gappelberg concluded: “Companies who don’t adopt a 3D/AR eCommerce strategy will be left behind as 3D/AR produces immersive shopping experiences that customers expect, and results in 93% higher conversions and up to 40% reduced returns for merchants (Shopify). Through 2022 we will continue to push for new customer wins and contract renewals, multiplying our ARR and MRR month over month.”
Nextech said winning new contracts, combined with renewals and expansion of existing contracts is driving the rapid growth for the company's 3D model and augmented reality business in eCommerce.
The company said that examples of some new customer wins include:
- Mechatronic Solutions Stäubli, global mechatronics solution provider in four dedicated Divisions: Electrical Connectors, Fluid Connectors, Robotics and Textile has signed on Nextech’s ARitize CAD, the CAD to POLY solution for their manufactured products, as well as a QR code generated Hologram. This latest adoption of CAD to POLY technology signals the manufacturing industry’s increasing adoption of 3D assets to help make their businesses profitable.
- Complex Home Goods William Wood Design, a UK-based mirror manufacturer has contracted with Nextech to create high-quality complex 3D models of their mirror SKUs. Mirrors are a highly complex product to convert into a 3D model, and with this contract Nextech continues to show that it has the capacity to handle complex models of a wide variety of products.
- Sports Equipment Nextech has signed a new 3D modeling deal with Kindred Custom Snowboards for 3D models of the company’s “rideable art” snowboards. This follows multiple sports related ARitize 3D deals, including MGI Golf, Marker Deutschland, Head, Himibike, Salamander Paddle Gear, Never Summer, The Perfect Mound, Source for Sports, Joyride Bikes and others.
- Unique Art Art Millwork Design, an American wood wall art and wood decor manufacturer has signed on for a variety of high quality 3D models showcasing their unique products. Nextech’s ability to provide high-quality and high-resolution models enables them to trust that the finished product will accurately reflect what customers are buying to put into their homes.
- Point of Sale Solutions Decor Metal, a Germany company providing tailored metal presentation concepts from display stands to shop fittings has signed on for a variety of 3D models. Seeing products in 3D allows their customers to get a sense of what the product will look like in-store, which adds to consumer confidence and helps increase sales.
- Logos Orange Energizing Solutions, an energy-efficient solutions company has signed on for a 3D AR logo, highlighting that companies are beginning to use 3D solutions in a variety of areas.
- Partner Agencies Nextech expanded its reach and now partners with marketing and other agencies to provide models for 3rd party clients. The latest signings in this area are for niche geode products, as well as an increase to the initial order for Smirnoff Ice products.
These signings highlight that more and more retailers are asking for 3D models in the eCommerce space, and their marketing agencies are reaching out to Nextech for solutions for their clients.
The company said it also continues with expanding its reach through partner advertising agencies and through integrations with Shopify Big commerce, and soon to be WooCommerce.
Stock Options
Nextech also said that, as part of a 5 year employment agreement, it has granted its CEO, Gappelberg 96,346 stock options per tranche, which he will receive in the future and only upon reaching market capitalization milestones that start at $100 million extending to a $1 billion dollar market capitalization. Only upon achieving these milestones will he then have the right to purchase up to an aggregate of 11,956,152 common shares of the company.
The options shall bear an exercise price of C$0.55 per share, expire on June 20, 2027, and vest in twelve equal tranches of 996,346 stock options per tranche, with such vesting contingent upon Gappelberg serving as chief executive officer or chairman of the company at the
applicable time of vesting; the company securing all necessary shareholder and regulatory approvals to provide for sufficient availability under its option plan for the issuance of the common shares upon exercise of the respective options, and/or shareholder approval of any options which exceed the number of common shares otherwise available for issuance under such option plan; and the company achieving certain market capitalization milestones.
The company has also granted 3,601,000 stock options to directors, officers, employees and consultants for the right to purchase up to an aggregate of 3,601,000 common shares of the company. The options vest over three years, at a price of C$0.55 per share, being the closing price of the last trading day prior to the date of grant. All options were granted in accordance with the company's stock option plan.
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.
Its 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's e-Cpmmerce platforms include: vacuumcleanermarket.com (VCM), infinitepetlife.com and Trulyfesupplements.com. VCM and product sales of residential vacuums, supplies and parts, and small home appliances are sold on Amazon. These eCommerce platforms serve as an incubator for developing and testing Nextech's leading-edge AR, AI and machine learning applications for powering next-generation eCommerce technology. However, with the growth the company is seeing in its AR and metaverse solutions it’s currently in the process of winding down its eCommerce businesses.
Contact the author at jon.hopkins@proactiveinvestors.com