Nextech AR Solutions Corp. (CSE:NTAR, OTCQB:NEXCF) has reported its financial and operating results for the second quarter ending June 30, 2022, showing continued record growth in 3D modelling for eCommerce and its Web3.0 business.
The provider of augmented reality (AR) solutions said revenue from Web3.0 and 3D modelling grew 40% quarter-on-quarter in the three months to June 30, 2022. It added that annual recurring revenue and repeat revenue was $1.6 million, also a record for the company.
Looking into the third quarter, Nextech said its newly-implemented shares for services plan will reduce its monthly burn from about $1 million per month to approximately $500,000 per month, extending its cash runway for at least 12 months.
READ: Nextech AR Solutions inks multiple new 3D modeling contracts in July and August 2022
The company noted that the wind-down of its eCommerce business is expected to add $1-2 million in cash to its cash balance and is expected to be completed in 3Q/4Q 2022.
The onboarding of major new customers in the third quarter is expected to show a meaningful ramp-up in its Web3.0 and 3D modeling revenue in the final two quarters of the year, it noted.
The ARway spinout and listing on the Canadian Securities Exchange (CSE) by the company is expected to take place in the third quarter of 2022 and will provide a stock dividend of 4,000,000 shares for all Nextech AR shareholders on a pro-rata basis.
Management changes
Nextech said Paul Duffy will be stepping down from the company's board of directors and will be transitioning from president to the Chief Metaverse Officer for ARway.
The company said it sincerely thanked Duffy for all his dedication and hard work as both a board member and president at Nextech AR and looked forward to his new and exciting role at ARway, where it is confident that he will be adding tremendous shareholder value.
Nextech noted that Evan Gappelberg will remain its CEO and will be taking on the additional role of chairman of the company's board.
The company added that Ori Inbar is leaving his role as a director of Nextech to pursue other activities in the Metaverse and it thanked him for his contributions and wished him all the best. The company said it currently has no plans to replace him on the board.
Nextech AR is accelerating the growth of the metaverse. Using breakthrough AI, the company is able to quickly, easily and affordably transform vast quantities and varieties of existing assets at scale, making products, people and places ready for interactive 3D use and giving creators at every level all the essential tools they need to build out their digital AR vision in the metaverse.
Contact the author at jon.hopkins@proactiveinvestors.com