Nextech AR Solutions Corp. Reports Q1 Results Showing Record Growth in Key 3D Model and AR Business
-
62% increase in sequential quarterly ARR (Annual Recurring Rev) growth from Q4 2021-Q1 2022 - In 2022 first 6 weeks of Q2 3D-AR model business has already surpassed entire Q1 in ARR contract revenue
-
Average dollar amount of 3D AR model deals increased
100% from Q4 to on avg.$10,000
Subsequently,
2022 Q1 Financial Highlights:
-
62% increase in sequential quarterly Annual Recurring Revenue growth -
Q1 Annual Recurring or Repeat Revenue now at record
$1,346,000 -
Year over year
reduction in operating expenses for Q1$2.7 million -
reduction in sequential operating expenses for Q1 2022 vs. Q4 2021$1.1 million -
Average size of our 3D AR model deals increased
100% from Q4 2021 to year to date 2022 to a deal size on average$10 K - Two new 3D models deals signed in six figures year to date 2022
Q2 Outlook:
-
Ended Q1 2022 with 12-month ARR contracts or annual repeat customers totalling
. Q2 to date this has grown to$1,346,000 .$1,575,000 - For the first 6 weeks of Q2 our 3D AR model business has already surpassed our entire Q1 in contract values signed
- The company is seeing a strong uptick in new interest in 3D modeling for ecommerce with larger contracts and an acceleration of closed deals which we expect to continue in Q2 2022.
Condensed Consolidated Interim Statements of Financial Position | |||||||
As at | |||||||
|
|
||||||
Assets | |||||||
Current assets | |||||||
Cash & Cash Equivalents | $ |
10,781,775 |
|
$ |
7,237,296 |
|
|
Receivables (Note 4) |
|
1,019,014 |
|
|
1,081,164 |
|
|
Contract Asset (Note 13) |
|
124,982 |
|
|
386,202 |
|
|
Prepaid expenses (Note 5) |
|
894,805 |
|
|
749,474 |
|
|
Inventory (Note 6) |
|
2,527,193 |
|
|
3,389,098 |
|
|
|
15,347,769 |
|
|
12,843,234 |
|
||
Non-current assets | |||||||
Equipment (Note 7) |
|
376,473 |
|
|
377,242 |
|
|
Right-of-use asset (Note 8) |
|
1,002,598 |
|
|
1,079,319 |
|
|
Intangible assets (Note 9) |
|
5,575,700 |
|
|
6,419,934 |
|
|
|
8,670,827 |
|
|
8,790,529 |
|
||
Total assets | $ |
30,973,367 |
|
$ |
29,510,258 |
|
|
Liabilities and Shareholders' Equity | |||||||
Current liabilities | |||||||
Accounts payable and accrued liabilities (Note 10) | $ |
1,910,159 |
|
$ |
2,759,017 |
|
|
Deferred revenue (Note 13) |
|
622,898 |
|
|
609,001 |
|
|
Lease liability (Note 8) |
|
290,357 |
|
|
290,357 |
|
|
|
2,823,414 |
|
|
3,658,375 |
|
||
Non-current liabilities | |||||||
Lease liability (Note 8) |
|
706,654 |
|
|
786,755 |
|
|
Deferred income tax liability |
|
590,391 |
|
|
712,215 |
|
|
Loan payable |
|
86,756 |
|
|
90,896 |
|
|
Total liabilities |
|
4,207,215 |
|
|
5,248,241 |
|
|
Shareholders' Equity | |||||||
Share capital (Note 11) |
|
80,202,550 |
|
|
70,570,760 |
|
|
Reserves |
|
11,272,102 |
|
|
10,671,525 |
|
|
Accumulated other comprehensive income |
|
1,953,782 |
|
|
1,978,469 |
|
|
Deficit |
|
(66,662,282 |
) |
|
(58,958,737 |
) |
|
|
26,766,152 |
|
|
24,262,017 |
|
||
Total liabilities and shareholders' equity | $ |
30,973,367 |
|
$ |
29,510,258 |
|
Consolidated Interim Statements of Comprehensive Loss | ||||||
Three months ended |
Three months ended |
|||||
|
|
|||||
Revenue (Note 13) | $ |
3,484,337 |
|
$ |
7,726,703 |
|
Cost of sales (Note 14) |
|
(2,000,937 |
) |
|
(4,412,278 |
) |
Gross profit |
|
1,483,400 |
|
|
3,314,425 |
|
Operating expenses: | ||||||
Sales and marketing (Note 14) |
|
2,616,948 |
|
|
4,640,087 |
|
General and administrative (Note 14) |
|
3,820,600 |
|
|
3,747,723 |
|
Research and development (Note 14) |
|
1,027,194 |
|
|
1,793,479 |
|
|
7,464,742 |
|
|
10,181,289 |
|
|
Other expense (income) | ||||||
Stock-based compensation (Note 11) |
|
578,805 |
|
|
2,402,628 |
|
Amortization (Note 9) |
|
728,378 |
|
|
380,220 |
|
Right of Use Amortization (Note 8) |
|
63,082 |
|
|
- |
|
Gain on short-term investments |
|
- |
|
|
(219,321 |
) |
Depreciation (Note 7) |
|
37,117 |
|
|
27,950 |
|
Foreign exchange gain |
|
446,626 |
|
|
(274,564 |
) |
|
1,854,008 |
|
|
2,316,913 |
|
|
Loss before income taxes |
|
(7,835,350 |
) |
|
(9,183,777 |
) |
Current income tax expense |
|
(7,128 |
) |
|
- |
|
Deferred income tax recovery |
|
138,933 |
|
|
- |
|
Net loss | $ |
(7,703,545 |
) |
$ |
(9,183,777 |
) |
Other comprehensive income (loss) | ||||||
Exchange differences on translating foreign operations |
|
(24,687 |
) |
|
(52,401 |
) |
Total comprehensive loss | $ |
(7,728,232 |
) |
$ |
(9,236,178 |
) |
Loss per common share | ||||||
Basic and diluted loss per common share |
|
(0.08 |
) |
|
(0.12 |
) |
Weighted average number of common shares outstanding Basic and diluted |
|
97,550,931 |
|
|
77,489,618 |
|
Consolidated Interim Statements of Cash Flows | ||||||
Three months ended |
Three months ended |
|||||
|
|
|||||
Cashflows from operating activities | ||||||
Net loss | $ |
(7,703,545 |
) |
$ |
(9,183,777 |
) |
Items not affecting cash | ||||||
Amortization of intangible assets |
|
728,378 |
|
|
380,220 |
|
Deferred income tax recovery |
|
(138,933 |
) |
|
- |
|
Amortization of right to use asset |
|
63,082 |
|
|
34,311 |
|
Depreciation of property and equipment |
|
37,117 |
|
|
27,950 |
|
Gain on digital assets |
|
- |
|
|
(219,321 |
) |
Shares for services |
|
717,066 |
|
|
22,156 |
|
Stock-based compensation |
|
578,805 |
|
|
2,402,628 |
|
Shares issued to settle related party liability |
|
- |
|
|
1,299,845 |
|
Shares issued for exercise of options |
|
- |
|
|
6,300 |
|
Changes in non-cash working capital balances | ||||||
Receivables |
|
62,150 |
|
|
(783,405 |
) |
Contract Asset |
|
261,220 |
|
|
(115,582 |
) |
Prepaid expenses |
|
(145,331 |
) |
|
(390,207 |
) |
Inventory |
|
861,905 |
|
|
(1,462,220 |
) |
Accounts payable and accrued liabilities |
|
(848,858 |
) |
|
1,448,960 |
|
Deferred revenue |
|
13,897 |
|
|
810,047 |
|
Net cash used in operating activities | $ |
(5,513,047 |
) |
$ |
(5,722,095 |
) |
Cashflows from investing activities | ||||||
Purchase of equipment |
|
(46,553 |
) |
|
(50,414 |
) |
Purchase of digital assets |
|
- |
|
|
2,765,356 |
|
Interest on lease liability |
|
(6,712 |
) |
|
- |
|
Net cash used in investing activities | $ |
(53,265 |
) |
$ |
2,714,942 |
|
Cashflows from financing activities | ||||||
Proceeds from exercise of options and warrants |
|
- |
|
|
486,464 |
|
Proceeds from private placement, net of issuance costs |
|
8,936,496 |
|
|
- |
|
Payment of lease obligations |
|
(73,398 |
) |
|
(44,567 |
) |
Net cash provided by financing activities | $ |
8,863,098 |
|
$ |
441,897 |
|
Change in cash during the period |
|
3,296,786 |
|
|
(2,565,256 |
) |
Cash, beginning of period |
|
7,237,296 |
|
|
10,684,952 |
|
Effects of foreign exchange on cash |
|
247,693 |
|
|
(219,680 |
) |
Cash, end of period | $ |
10,781,775 |
|
$ |
7,900,016 |
|
Supplemental cash flow information | ||||||
Taxes paid |
|
- |
|
|
- |
|
Interest Paid |
|
9,550 |
|
|
1,261 |
|
Interest received |
|
11,830 |
|
|
9,298 |
|
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International Dial-In Number: (646) 960-0187
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On behalf of the Board of
CEO and Director
About Nextech AR
Non-IFRS Financial Measures
Total Bookings is not defined by and does not have a standardized meaning under International Financial Reporting Standards ("IFRS") as issued by the
"Total Bookings" is the total dollar value of all services/goods included in contracts with our customers. ‘Value’ is the total revenue (recognizable or not) associated with each transaction, as opposed to the amount invoiced in the period.
Please refer to the Company's most recent management discussion and analysis for further information on non-IFRS measures.
Forward-looking Statements
This press release may contain forward-looking information within the meaning of applicable securities laws, which reflects the Company's current expectations regarding future events, including with respect to the Company's financial outlook. In some cases, but not necessarily in all cases, forward-looking statements can be identified by the use of forward looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking statements. Forward-looking statements are not historical facts, nor guarantees or assurances of future performance but instead represent management's current beliefs, expectations, estimates and projections regarding future events and operating performance.
Specifically,
Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in the final short form prospectus of the Company dated
Certain information contained herein may constitute “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified using forward-looking terminology such as, “will be”, “looking forward” or variations of such words and phrases or statements that certain actions, events, or results “will” occur. Forward-looking statements regarding the Company increasing investors awareness are based on the Company’s estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance, or achievements of
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For further information:
Investor Relations
investor.relations@Nextechar.com
866-ARITIZE (274-8493) Ext 7201
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