Mr. Evan Gappelberg reports

NEXTECH3D.AI REPORTS PRELIMINARY 70% GROSS PROFIT MARGIN IN Q2, 2024 REVENUE OF $1.2 MILLION

Nextech3D.AI Corp. has released its preliminary unaudited financial and operating results for Q2 2024 ended June 30, 2024. These results indicate strong revenue growth of $1.2-million, up from $1-million in Q1 2024. The company is experiencing operational leverage, with a gross profit margin of 70 per cent in Q2, compared with 50 per cent in Q1 and 30 per cent for full-year 2023. The company's strategic pivot to India in Q4 2023 and advancements in its AI (artificial intelligence) technology are projected to boost its gross margin to 80 per cent in 2024.

Chief executive officer commentary

Nextech3D.AI chief executive officer and founder Evan Gappelberg commented: "We are pleased with our Q2 preliminary results, especially our 70-per-cent gross margin, which marks a new high for our company. As a newly certified 3-D modelling partner for Amazon, the largest e-commerce platform, we anticipate significant new business opportunities from this pivotal certification. Moving operations to India has positively impacted our production capacity and profits, with consistent profit margins of 70 per cent, a 133-per-cent increase compared to our 30-per-cent margins in 2023."

He continued: "Our growth in 2024 is set to accelerate as we secure more enterprise deals and as Amazon promotes our 3-D modelling services to their merchants. At the same time, we are developing crucial AI technology that will continue to drive our revenue and profits. We are witnessing a rapid convergence of AR [augmented reality] and AI technology, which is beginning to drive the mass adoption of 3-D modelling for e-commerce."

Amazon listings with 3-D models have seen an improvement of two times in purchase conversion on average, according to a 2022 report from Amazon itself. This high ROI (return on investment) is driving more sellers to adopt 3-D models; and, now as a 3-D model external content provider (ECP) for Amazon, the company is strategically positioned in a significant growth opportunity.

Nextech3D.AI's patents in the 3-D model generation from 2-D and CAD images (2-D to 3-D and CAD to 3-D) enables it to scale 3-D model creation and now allows Amazon sellers to publish those 3-D models to Amazon's stores all through one platform and one team. As an Amazon 3-D model external content provider, Nextech3D.AI is now offering its 3-D modelling solutions to Amazon's expansive marketplace that are currently selling products in Amazon stores.

Key features of Nextech3D.AI's 3-D platform offering:

• Seamless 3-D model creation: Bring your 2-D and CAD files to the company's platform, and Nextech3D.AI will build accurate 3-D models at scale.
• AI-driven 3-D texturing: Enhance 3-D models with realistic textures using text prompt or from an image and apply textures to your 3-D models.
• 2-D photo renders from 3-D models: Generate high-quality 2-D images from 3-D models for versatile use. Increase ROI (return on investment) from your 3-D models and have no more costly photo shoots.
• Compliance and publishing: Provide your existing 3-D models, and the company ensures they meet Amazon's standards and publish them to your Amazon product pages.

Nextech3D.AI is excited to bring these innovative solutions to e-commerce brands and Amazon sellers, helping them leverage the power of 3-D and AR to enhance their product listings on Amazon.

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 manufacturers with CAD files and for e-commerce merchants. The company's primary focus lies in creating high-quality 3-D WebAR photorealistic models for Amazon and various other on-line retailers with patented 2-D-to-3-D technology.

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