Mr. Evan Gappelberg reports

NEXTECH3D AI REPORTS PRELIMINARY UNAUDITED 2024 REVENUE OF $3.1MILL WITH GROSS PROFIT OF $1.9 MILL +62% SEES POSITIVE OUTLOOK FOR 2025 WITH A 80%+ PROFIT MARGINS AND AI SALES GROWTH

Nextech3D.AI Corp. has released preliminary unaudited results for 2024.

Reports preliminary unaudited 2024:

• Revenue of $3.1-million;
• With gross profit of $1.9-million, an increase of 62 per cent;
• Sees positive outlook for 2025 with a greater-than-80-per-cent profit margin.

Comparison of 2024 with 2023: In 2024, Nextech3D.AI achieved a strong increase in its gross profit margin, reaching 65 per cent compared with 29 per cent in 2023. This was driven by the implementation of artificial intelligence technologies and having 3-D operations in India. Furthermore, the company reduced its overall operational costs by 35 per cent in 2024, positioning it for even greater savings and operational efficiency in 2025. The improved gross margin and cost reduction reflect the company's commitment to innovation and its continuing efforts to streamline operations.

"We are encouraged with our early success in sales in 2025 and the solid progress we made in cost-cutting and improving margins in 2024," said Evan Gappelberg, chief executive officer. "With a strong sales performance in January, cost reduction initiatives on track and continued advancements in AI, we are confident that we will meet our 2025 goals of achieving an 80-per-cent gross profit margin and expanding our market share."

2025 outlook and performance projections

Looking ahead to 2025, NexTech3D.AI is tracking a projected gross profit margin of greater than 80 per cent by the end of the year. This is a continuation of the company's commitment to enhancing operational efficiency through AI, cloud optimization and automated processes. The company is also laser focused on driving sales growth through strategic hires, including new business development representatives, and further expansion of its product offerings, including the continued growth of its MapD platform. Additionally, using AI tools, the company anticipates reducing its overall operational costs by more than 50 per cent in 2025, leveraging AI and optimizing cloud infrastructure to drive sustained profitability.

Nextech3D.AI continues to lead in the development and deployment of artificial-intelligence-powered 3-D solutions that drive value for its customers and shareholders, with a focus on technological innovation and operational excellence.

About Nextech3D.AI Corp.

NexTech3D.AI is a leader in the development and deployment of artificial-intelligence-powered 3-D solutions for various industries, offering a suite of cutting-edge products that enhance customer engagement and streamline operations. With a focus on technological innovation, the company is transforming the future of 3-D and AI integration for businesses worldwide.

The company has renewed its previously established share purchase warrant program, pursuant to which it will issue an aggregate of 7,781,185 share purchase warrants to its service providers in connection with their employment and/or consulting arrangements with the company. Each warrant will be exercisable to acquire one common share of the company at an exercise price of eight cents for a period of one year. The warrants will be automatically exercised in equal monthly tranches on a pro rata basis over the term of the warrants, and the exercise price will be satisfied by the monthly salaries otherwise payable by the company to the recipients of the warrants. Upon exercise, the recipients of the warrants may opt to either receive the underlying shares or participate in a managed sale program to sell the underlying shares on the open market and receive the cash proceeds. Any shortfall as a result of participation in such a managed sale program will be financed by the company.

About Nextech3D.AI Corp.

Nextech3D.AI is a versatile augmented reality and AI technology company that utilizes its proprietary artificial intelligence 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-3-D technology.

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