Nextech AR Solutions Corp. Reports Record Q1 2021 Results
Nextech AR Solutions Corp. (“Nextech” or the “Company”) (OTCQB: NEXCF) (NEO: NTAR) (CSE: NTAR) (FSE: N29) announces its financial results for the first quarter 2021 ending March 31st, 2021 and a operational Nextech AR LiveX update. Subsequently, Nextech will host a conference call to discuss the first quarter results and operations update on May 12th, 2021 at 5:30 p.m. Eastern Time.
Q1 Financial highlights:
-
Revenue for the three months ended March 31st, 2021 was
$7.7 million an increase of over200% compared to the three months ended March 31st, 2020 of$2.5 million . -
Gross profit for the three months ended March 31st, 2021 was
$3.3 million an increase of over280% compared to the three months ended March 31st, 2020 of$1.4 million . -
Total Bookings for the three months ended March 31st, 2021 was
$2.2 million an increase of over 4,700% compared to the three months ended March 31st, 2020 of$0.5 million .
LiveX Operational Update:
Nextech is pleased to announce that its next-generation digital experience platform Nextech AR LiveX is now live. LiveX is a highly scalable all-in-one streaming platform for creators, corporate events, livestreaming, music, NFTs which is AR enhanced and advertising enabled. The platform is also being intergraded with Shopify to allow for seamless ecommerce and merchandise sales.
As a result of the successful launch of LiveX, the Company has committed all current and future events to be hosted and monetized on LiveX Platform. The LiveX Platform has demonstrated the following advantages:
- With LiveX our Events are designed 10X faster allowing for cost savings and scale.
- Multiple monetization options: ads, ticketing, merch sales, event sales and NFT auctions.
- Better user functionality and design resulting in an improved attendee experience.
- Reduction in the cost-to-serve per event, yielding a greater gross profit margin with the additional benefit of recurring revenues from monthly and annual subscriptions.
Transitioning all events to our LiveX platform will save the Company approximately
Nextech AR LiveX has the potential for further delivery efficiencies and related costs benefits through Q3 with the release of LiveX 2.0, featuring self-serve.
“Our Q1 2021 record results are a testament to the success of our diversified business model and our unique value proposition; offering Augmented Reality technology in everything that we do. Our business is growing rapidly through AR innovation and our DXP platform LiveX. LiveX is built for scale for enterprise clients targeting key verticals like education, entertainment, events, retail, medical and marketplaces. We see this as the digital experience platform of the future, today,” said Evan Gappelberg CEO and Director.
NexTech AR Solutions Corp. Condensed Consolidated Interim Statements of Financial Position (Expressed in Canadian dollars) (Unaudited) |
||||||||
March 31, 2021 |
December 31, 2020 |
|||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash | $ |
7,900,016 |
|
$ |
10,684,952 |
|
||
| Digital Assets |
|
- |
|
|
2,546,035 |
|
||
| Receivables |
|
2,095,953 |
|
|
1,312,548 |
|
||
| Contract Asset |
|
360,060 |
|
|
244,478 |
|
||
| Prepaid expenses |
|
1,744,576 |
|
|
1,354,369 |
|
||
| Inventory |
|
4,673,895 |
|
|
3,211,675 |
|
||
|
16,774,500 |
|
|
19,354,057 |
|
|||
| Non-current assets | ||||||||
| Equipment |
|
337,036 |
|
|
300,558 |
|
||
| Right-of-use asset |
|
992,298 |
|
|
1,034,724 |
|
||
| Intangible assets |
|
3,090,162 |
|
|
3,500,041 |
|
||
| Goodwill |
|
4,847,750 |
|
|
4,886,513 |
|
||
| Total assets | $ |
26,041,746 |
|
$ |
29,075,893 |
|
||
| Liabilities and Shareholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ |
3,976,397 |
|
$ |
2,527,437 |
|
||
| Deferred revenue |
|
1,193,069 |
|
|
383,022 |
|
||
| Lease liability |
|
147,750 |
|
|
150,662 |
|
||
| Contingent consideration |
|
2,489,557 |
|
|
2,717,859 |
|
||
|
7,806,773 |
|
|
5,778,980 |
|
|||
| Non-current liabilities | ||||||||
| Lease liability |
|
836,323 |
|
|
877,978 |
|
||
| Total liabilities |
|
8,643,096 |
|
|
6,656,958 |
|
||
| Shareholders' Equity | ||||||||
| Share capital |
|
43,775,485 |
|
|
41,968,520 |
|
||
| Reserves |
|
9,113,625 |
|
|
6,757,098 |
|
||
| Deficit |
|
(35,490,460 |
) |
|
(26,306,683 |
) |
||
|
17,398,650 |
|
|
22,418,935 |
|
|||
| Total liabilities and shareholders' equity | $ |
26,041,746 |
|
$ |
29,075,893 |
|
||
NexTech AR Solutions Corp. Condensed Consolidated Interim Statements of Comprehensive Loss (Expressed in Canadian dollars) (Unaudited) |
||||||||
Three months ended |
Three months ended |
|||||||
March 31, 2021 |
March 31, 2020 |
|||||||
| Revenue | $ |
7,726,703 |
|
$ |
2,491,985 |
|
||
| Cost of sales |
|
(4,412,278 |
) |
|
(1,144,136 |
) |
||
| Gross profit |
|
3,314,425 |
|
|
1,347,849 |
|
||
| Operating expenses: | ||||||||
| Sales and marketing |
|
4,640,087 |
|
|
1,418,833 |
|
||
| General and administrative |
|
3,747,723 |
|
|
709,427 |
|
||
| Research and development |
|
1,793,479 |
|
|
239,193 |
|
||
|
10,181,289 |
|
|
2,367,453 |
|
|||
| Other income (expense) | ||||||||
| Stock-based compensation |
|
2,402,628 |
|
|
268,275 |
|
||
| Amortization |
|
380,220 |
|
|
88,253 |
|
||
| Gain on digital assets |
|
(219,321 |
) |
|
- |
|
||
| Depreciation |
|
27,950 |
|
|
9,849 |
|
||
| Foreign exchange gain |
|
(274,564 |
) |
|
1,694 |
|
||
| Financing expense |
|
- |
|
|
- |
|
||
|
2,316,913 |
|
|
368,071 |
|
|||
| Loss before income taxes |
|
(9,183,777 |
) |
|
(1,387,675 |
) |
||
| Deferred income tax recovery |
|
- |
|
|
24,239 |
|
||
| Net loss | $ |
(9,183,777 |
) |
$ |
(1,363,436 |
) |
||
| Other comprehensive income (loss) | ||||||||
| Exchange differences on translating foreign operations |
|
(52,401 |
) |
|
488,316 |
|
||
| Total comprehensive loss | $ |
(9,236,178 |
) |
$ |
(875,120 |
) |
||
| Loss per common share | ||||||||
| Basic and diluted loss per common share |
|
(0.12 |
) |
|
(0.02 |
) |
||
Weighted average number of common shares outstanding |
||||||||
Basic and diluted |
|
77,489,618 |
|
|
61,378,508 |
|
||
NexTech AR Solutions Corp. Condensed Consolidated Interim Statements of Cash Flows (Expressed in Canadian dollars) (Unaudited) |
||||||||
Three months ended |
Three months ended |
|||||||
March 31, 2021 |
March 31, 2020 |
|||||||
| Cashflows from operating activities | ||||||||
| Net loss | $ |
(9,183,777 |
) |
$ |
(1,363,436 |
) |
||
| Items not affecting cash | ||||||||
| Amortization of intangible assets |
|
380,220 |
|
|
88,253 |
|
||
| Amortization of right to use asset |
|
34,311 |
|
|
- |
|
||
| Gain on sale of bitcoin |
|
(219,321 |
) |
|
(24,239 |
) |
||
| Depreciation of property and equipment |
|
27,950 |
|
|
9,849 |
|
||
| Shares issued to settle related party liability |
|
1,299,845 |
|
|
38,239 |
|
||
| Stock-based compensation |
|
2,402,628 |
|
|
- |
|
||
| Share-based payments |
|
22,156 |
|
|
650,946 |
|
||
| Shares issued for exercise of options |
|
6,300 |
|
|
- |
|
||
| Changes in non-cash working capital balances | ||||||||
| Receivables |
|
(783,405 |
) |
|
(217,245 |
) |
||
| Contract Asset |
|
(115,582 |
) |
|||||
| Prepaid expenses |
|
(390,207 |
) |
|
(19,075 |
) |
||
| Bitcoin |
|
2,546,035 |
|
|
- |
|
||
| Inventory |
|
(1,462,220 |
) |
|
(244,810 |
) |
||
| Accounts payable and accrued liabilities |
|
1,448,960 |
|
|
(325,523 |
) |
||
| Deferred revenue |
|
810,047 |
|
|
- |
|
||
| Net cash used in operating activities | $ |
(3,176,060 |
) |
$ |
(1,407,041 |
) |
||
| Cashflows from investing activities | ||||||||
| Sale of Bitcoin |
|
219,321 |
|
|
- |
|
||
| Purchase of equipment |
|
(50,414 |
) |
|
- |
|
||
| Net cash used in investing activities | $ |
168,907 |
|
$ |
- |
|
||
| Cashflows from financing activities | ||||||||
| Proceeds from exercise of options and warrants |
|
486,464 |
|
|
712,439 |
|
||
| Payment of lease obligations |
|
(44,567 |
) |
|
- |
|
||
| Net cash provided by financing activities | $ |
441,897 |
|
$ |
712,439 |
|
||
| Change in cash during the period |
|
(2,565,256 |
) |
|
(694,602 |
) |
||
| Cash, beginning of period |
|
10,684,952 |
|
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