Nextech AR Solutions Corp. (CSE:NTAR, OTCQB:NEXCF) said its financial and operating results for the third quarter 2022 include a 3D modelling revenue jump of 192%, plus a technology services jump of over 66% over second quarter, the latter coming in at approximately C$920,000.
Nextech also reported its 3D model production increased over 110%, its technology services gross profit margin improved to over 60% versus the 37% reported in 2Q. Its gross profit was approximately $555,000 on $920,000 in 3Q technology revenue with a gross profit margin of 60%.
Total revenue for the quarter was $3 million, while total gross profit for the quarter was approximately $1.34 million, the company said.
READ: Nextech AR launches groundbreaking AI tools to scale its 3D model production capabilities and files new patent
Nextech AR CEO Evan Gappelberg said 3Q was a transformational quarter, as demand, production and revenue from 3D modeling significantly ramped up.
“This is evident with our sequential production of 3D models up by over 110% and our sequential revenue of 3D models up by over 192% over 2Q. Our 3Q figures are showing that our 3D modelling revenue is now growing exponentially,” Gappelberg said in a statement.
“With the announcement of a $700,000 3D model order to be delivered in 4Q, we are confident that 4Q will be another record quarter for Nextech. As it is still quite early in 4Q, we do expect to announce additional significant orders in the coming weeks as demand and our production capabilities will only continue to increase into 4Q, 2023 and beyond,” Gappelberg said, adding several quotes have been issued for large requests for proposals, which could close in 4Q.
The Toronto-based company noted that its ecommerce generated over $2 million of revenue during the wind-down this quarter, bringing in over $800,000 in cash in 3Q, and in Q4 to date has brought in additional cash achieving the company’s set goal of bringing in $1 million to $2 million in cash. The company also said it expects to be fully out of the legacy e-commerce business in 4Q, 2022.
Nextech said it will ramp up 3D model production to meet the growing demand from the largest Prime ecommerce marketplace as well as re-orders, setting the stage for a substantial increase in 3D model production in 4Q, 2022 and continuing in 2023.
It also said that trading in ARway (CSE:ARWY) began on October 26, 2022. With a current market price of approximately $2 per share, Nextech’s 13-million share ownership is valued at about $26 million dollars.
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