Mr. Evan Gappelberg reports

NEXTECH3D.AI ACHIEVES MILESTONE WITH 3D AI MODELING PROFIT MARGINS HITTING 80% IN Q2 2024 UP FROM 30% IN 2023

Nextech3D.AI Corp. has provided an update on a major milestone in its 3-D modelling business for e-commerce by hitting 80-per-cent gross profit in Q2 2024, which is up 166 per cent from 30 per cent in 2023. This milestone achievement is only possible through the company's investment in AI (artificial intelligence) and its pivot to Hyderabad, India, in Q3 2023.

The company believes that it can become profitable in 2024 by scaling revenue with 80-per-cent profit margins while operating expenses are going down due to its investment in its patented AI. The strategic shift to Hyderabad, India, aligns perfectly with Nextech3D.AI's commitment to delivering top-tier 3-D modelling and augmented reality solutions while maintaining a keen eye on profitability and fiscal responsibility for its valued shareholders.

Why AI and 3-D modeling and why now

The e-commerce landscape is evolving rapidly, with consumers demanding more interactive and engaging shopping experiences. This is where AI and 3-D modelling technology come into play, offering a dynamic, immersive and personalized shopping journey. The shift from 2-D to 3-D modelling for e-commerce is a major multidecade transformation that is being led by AI. This transformation is evident as major brands and companies are incorporating 3-D models and AR (augmented reality) shopping, including Amazon, Walmart, CB2, IKEA, Sephora, Target and more.

Amazon is leading this shift, transitioning from traditional 2-D images to 3-D models for all its products, setting a new standard in on-line retail. Nextech3D.AI is proud to be a 3-D model supplier for Amazon, already creating tens of thousands of 3-D models per month.

The power of 3-D models in e-commerce

Three-dimensional models in e-commerce enable customers to visualize products in high detail from every angle, significantly enhancing decision-making confidence. This shift leads to higher conversion rates as customers are more likely to purchase when they can thoroughly explore a product. Moreover, 3-D visualization reduces returns as buyers have a clearer expectation of what they are purchasing, thus saving costs and improving customer satisfaction. Additionally, interactive 3-D models increase customer engagement, keeping them on your site longer, which directly correlates with increased sales.

Timely

As on-line shopping continues to grow, the demand for more immersive and interactive experiences is growing. Businesses adopting 3-D models are setting new benchmarks for customer engagement and satisfaction.

Nextech3D.AI believes it stands at the forefront of this megatrend, leading the shift from static 2-D images to immersive 3-D experiences. Its patented AI-powered 3-D modelling technology creates photo-realistic 4K 3-D models that cater to major e-commerce platforms like Amazon. With years of expertise and a portfolio of high-profile clients, including Amazon, P&G, Kohls, Miele and others -- Nextech3D.AI is transforming on-line shopping into an interactive adventure.

Management changes

Anum Wagas, CPA, CGA, previously the director of finance for Nextech3D.AI, has been appointed interim chief financial officer. Ms. Wagas brings over a decade of experience from multinational companies and government sectors, with a strong background in financial reporting under IFRS (international financial reporting standards). She succeeds Andrew Chan, who is taking a new job in different industries. The board expresses appreciation for his contributions and wishes him success.

About Nextech3D.AI Corp.

Nextech3D.AI is a versatile augmented reality and AI technology company that utilizes its proprietary artificial intelligence (AI) to craft immersive 3-D experiences at scale for e-commerce. The company's primary focus lies in creating high-quality 3-D WebAR photorealistic models for Amazon and various other on-line retailers. Nextech3D.AI has adopted a unique approach to creating shareholder value beyond its operating business of creating 3-D models.

The company also develops or acquires disruptive AI technologies, which are subsequently spun out to shareholders as stand-alone public companies. This spinout strategy allows Nextech3D.AI to issue stock dividends to its shareholders while maintaining significant ownership in the public spinout without dilution to the parent company (Nextech3D.AI).

Notably, Nextech3D.AI successfully spun out ARway, its spatial computing platform, as a stand-alone public company on Oct. 26, 2022. The company retains a 49-per-cent stake with 13 million shares in ARway Corp. while distributing four million shares to Nextech3D.AI shareholders.

Similarly, Nextech3D.AI accomplished its second spinout launching Toggle3D.ai, an AI-powered 3-D design studio aimed at competing with Adobe. The company retains a 44-per-cent stake with 13 million shares in Toggle3D.ai Corp.

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