Mr. Evan Gappelberg reports

NEXTECH3D.AI REPORTS RECORD PRELIMINARY Q2 REVENUE UP +155% TO $1.4MILL & GUIDES TOWARDS BREAKOUT Q3 REVENUE +200% OF $1.7MILL -$1.9MILL AMID SURGING 3D MODEL DEMAND

Nextech3D.AI (formerly Nextech AR Solutions Corp.) has released its preliminary unaudited financial and operating results for its second quarter ended June 30, 2023.

Preliminary Q2 2023 financial highlights:

• Revenue for Q2 2023 was $1.4-million, up 155 per cent compared with 2022;
• Revenue for six months ending June 30, was $2.7-million up 157 per cent compared with 2022;
• Gross profit remained consistent at 38 per cent, contributing $1.1-million and $500,000 year to date and for Q2, respectively;
• Gross margin is expected to increase to 40 to 50 per cent next quarter, and increase in Q4 and 2024 as its AI (artificial intelligence) takes over.

Evan Gappelberg -- chief executive officer commentary:

Nextech3D.ai CEO Evan Gappelberg comments: "Our preliminary results for Q2 were impressive, as we achieved record sales of $1.4-million. However, what excites me even more is the exciting growth we are witnessing in our Q3 and Q4 orders. Based on the current order flow from Amazon, we are projecting a breakout Q3 quarter with revenue of at least $1.7-million, and we also anticipate an expansion in profit margins." He continued: "We believe there is potential for the revenue to exceed $1.7-million as that is our conservative estimate for Q3. This quarter is expected to be the long-awaited turning point for our company. This belief is reinforced by the recent announcement of a significant expansion contract worth $2.2-million from Nextech3D.ai's largest customer, Amazon. This contract highlights the success of Nextech3D.ai's groundbreaking generative-AI technology, positioning the company as the leading AI solution globally for scaling 3-D model production in the thriving e-commerce, gaming and manufacturing industries. Furthermore, thanks to our latest funding round, our cash position is now robust enough to accommodate the increased demand we anticipate in the second half of 2023 and beyond."

Investor livestream

Join the company:  Today, Tuesday, Aug. 1, 2023

Topic:  Amazon partnership part II

Time:   12 p.m ET/9 a.m PT

Presenters:  Evan Gappelberg (founder and CEO), and Reza Davariar (chief operating officer)

Board of directors and audit committee changes

The company would also like to announce the appointment of Anthony Pizzonia, CPA, to the board of directors and as a member of the audit committee.

Mr. Pizzonia has over 30 years of experience in operating, financing and business development within the public markets and has a demonstrated ability to manage financial and operational challenges within dynamic and growing businesses.

Mr. Pizzonia currently serves as senior director of finance for GS1, a global standards organization. Previously, Mr. Pizzonia held a variety of positions with increasing responsibility for over 24 years, at AlarmForce Industries, one of the largest residential security companies in North America. He ultimately served as director and chief financial officer from 1992 to 2016, and eventually president before the company was acquired by Bell Canada (BCE) in September, 2017. Mr. Pizzonia was also CFO of ImaginAR, a publicly traded technology company that provides a self-publishing platform that integrates with a mobile app to instantly create augmented reality campaigns. Mr. Pizzonia is a chartered public accountant and holds an honours bachelor of administrative studies degree from York University.

Recent news

• Nextech3D.ai announces $2.2-million expansion contract from its largest enterprise customer driving a surge in 3-D modelling demand in Q3;
• Nextech3D.ai announces major market expansion of its 3-D modelling business into gaming and manufacturing industries;
• Nextech3D.ai files to uplist on Nasdaq Capital Market and signs large enterprise renewal and expansion contract with major retailer for over 1,000 3-D models.

The Public Company CEO Experience Podcast

Nextech3D.ai has recently launched "The Public company CEO Experience Podcast," featuring Mr. Gappelberg, a highly accomplished three-time public company CEO and serial entrepreneur. The podcast offers listeners an exclusive behind-the-scenes look into the dynamic life of a public company CEO with valuable insights, while also discussing trending topics and providing business updates on Nexech3D.ai, Toggle3D.ai and ARway.ai.

About Nextech3D.ai

The company (OTCQX: NEXCF) (Canadian Securities Exchange: NTAR) (Frankfurt Stock Exchange: EP2) is a diversified augmented reality, artificial intelligence technology company that leverages proprietary artificial intelligence to create 3-D experiences for the metaverse. Its main businesses are creating 3-D WebAR photorealistic models for the prime e-commerce marketplace, as well as many other on-line retailers. The company develops or acquires what it believes are disruptive technologies and, once commercialized, spins them out as stand-alone public companies issuing a stock dividend to shareholders while retaining a significant ownership stake in the public spinout.

On Oct. 26, 2022, Nextech3D.ai spun out its spatial computing platform, ARway.ai, as a stand-alone public company. ARway.ai is disrupting the augmented-reality way-finding market with a no-code, no-beacon spatial computing platform enabled by visual marker tracking. Nextech3D.ai retained 13 million shares in ARway and distributed four million shares to Nextech3D.ai shareholders. ARway.ai is currently listed on the Canadian Securities Exchange (ARWY), in the United States on the OTCQB (ARWYF) and internationally on the Frankfurt Stock Exchange (FSE: E65).

On June 14, 2023, the company completed its second spinout of Toggle3D.ai, a groundbreaking software-as-a-service solution that utilizes generative AI to convert CAD files, apply stunning 4K texturing and enable seamless publishing of superior 4K 3-D models. Nextech3D.ai retained 13 million shares in Toggle3D.ai and distributed four million shares to Nextech3D.ai shareholders. Toggle3D.ai is trading on the Canadian Securities Exchange (TGGL) and in the United States (TGGLF).

We seek Safe Harbor.