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Nextech AR Solutions Corp. Reports Record Q1 2021 Results

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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 over 200% 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 over 280% 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 $6.0 million annually relating to streamlining the engineering, development and support costs associated with earlier versions of the technology platform.

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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