Mr. Evan Gappelberg reports
NEXTECH AR SOLUTIONS REPORTS PRELIMINARY 2ND QUARTER 2020 RESULTS
Nextech AR Solutions Corp. has released its preliminary results of its second quarter ended June 30, 2020. The final and confirmed numbers will be filed to SEDAR by Aug. 31.
Q2 2020 highlights:
- Revenue grows 133 per cent to $3.5-million;
- Gross profit grows 171 per cent to $2.1-million with a 60-per-cent margin;
- Cash on hand of $6.4-million;
- Working capital of $7.3-million;
- Obtained credit facility from the Royal Bank of Canada of $600,000;
- Applied for uplist to Nasdaq capital market;
- InfernoAR virtual events product launches and revenues begin scaling;
On July 21, Evan Gappelberg, chief executive officer of Nextech AR Solutions, purchased 250,000 shares through a warrant conversion for a total consideration of $175,000; the shares increased his total holdings to 6,093,328.
Mr. Gappelberg, CEO of Nextech, comments: "We are pleased to report that our preliminary second quarter ended June 30, 2020, results were positive and very strong across our business segments. These results were driven by new customer additions, expansion of product lines, and increases in conversions from our e-commerce and the newly acquired infernoAR business." He continues: "We are uniquely positioned to see our business benefit from this new 'stay at home' paradigm shift with our AR e-commerce, video conferencing and virtual events business units. The digital transformation that is taking place globally is creating more business opportunities for video conferencing virtual learning, virtual conferences, or virtual events, and e-commerce than ever before."
The company's newly launched InfernoAR business has booked approximately $1-million in new virtual event deals, which are typically one-day to three-day events, with a deal size between $25,000 to $250,000 with large corporations in the past 60 days including: ARCH Insurance, ICSOBA, NAMPI, NAMD, Shaklee, YASM (Church), BDA Sports, SWM International, Aluminium Research Centre and the government of Canada. The InfernoAR business is growing rapidly, with a current run rate approaching over $12-million annually. However, as the company's sales force grows, Nextech expects that the monthly revenue number will grow with it as current market demand for video conferencing and virtual events is extremely high. Nextech is also seeing strong demand for its other businesses including augmented reality e-commerce, its 3-D/AR ad network as well as its Aritize white-label app, and its webAR business, which are not included in the InfernoAR run rate.
The CEO continues: "Nextech's leadership position in this industry is now attracting more M&A opportunities, as we are being approached by innovative AR/VR technology companies. We have closed on four deals in the last 18 months and are in discussions with several candidates with an eye toward a transformative acquisition, which could further enhance shareholder value."
Addressing the recent short-seller attack: "In recent days, our stock has again been attacked by short sellers who are using market manipulation and false rumours to create panic in the market. This group is rehashing the same tactics they used last February. I would like to remind investors that after the February short-seller attack, and a sharp sell off in the stock, our stock has moved on to new all-time highs. Nextech's business is 'firing on all cylinders,' and sales velocity is accelerating. Our business, our cash position and our product mix has never been better since going public in 2018. It is unfortunate that shareholders are being misled by individuals that want to see our stock go down and we urge you to read our financial reports, to visit our website or even call me directly as many of you have in the past day. My direct line is 631-655-6733 or you can e-mail me questions at
as we have nothing to hide. We are committed to being fully transparent for all shareholders. We will continue to issue news on any developments, which are of interest to shareholders, and hold regular updates and shareholder calls, where we answer all questions. We are building a substantial business that we believe has enormous long-term value. To back that strong belief, I have put my money where my mouth is by investing in Nextech with my own money and taking all my pay in stock as are all our senior executives at Nextech AR Solutions."
InfernoAR supports clients that require integration with enterprise systems, custom workflow, cognitive search and discovery, interactive features, and secure multi-CDN (content delivery network) streaming in front of and behind the firewall. The platform services Fortune 500 businesses like Johnson and Johnson, Viacom, Polycom, and others. It is super secure with token authentication allowing the CDNs to reject serving videos to unauthorized users, by taking the JWT (JSON Web token) authentication to the edge security is pushed closer to the user and load is taken off the core application. InfernoAR has been providing top products and service in the video streaming space for over 10 years.
Recent company highlights in 2020:
July 13, 2020: The company is launching a new video conferencing software into its InfernoAR platform (September, 2020). The new video conferencing features will integrate collaborative classroom learning, one-to-one networking and traditional video conferencing directly into the platform letting users seamlessly launch and manage both collaborative experiences and large-audience events directly from InfernoAR.
July 8, 2020: The company filed to uplist its stock to the Nasdaq capital market.
July 2, 2020: The company hired Arnaud Amet as director of sales for Europe. Mr. Amet, situated in Paris, France, comes from regional and global sales and marketing roles in Microsoft where he worked for over a decade ending in 2015. He also has significant experience with his own startup in sales and marketing of augmented reality/virtual reality to large brands partnering with Facebook, Huawei and Microsoft.
June 29, 2020: The company signed a contract to supply its InfernoAR video conferencing and virtual events platform to the Dallas Independent School District.
June 19, 2020: Nextech closed a private placement of 1,528,036 units priced at the market price of $2.10 per unit for gross proceeds of $3,208,875. This financing provides the company with a healthy cash and inventory position of over $7.5-million -- its highest ever.
June 18, 2020: The company announced that it has signed a partner supplier agreement with
BDA LLC. BDA Sports will be using the InfernoAR virtual event platform for its signature annual think tank 2020 program for teams in the National Hockey League, National Basketball Association, Major League Baseball and National Football League.
June 10, 2020: The company signed a partner agreement and contract to provide its InfernoAR virtual events platform services to Skybridge World Dubai clients. Skybridge is a leading events, exhibition and marketing solutions provider to global corporations whose clients include: Emirates Glass, IBM, Lilly, Henkel, Amgen and many others. Nextech and Skybridge have already solidified their partnership and signed up their first customer, Bohringer Ingelheim.
June 4, 2020: The company launched its new ARitize360 app now live and available for a free download on both iOS and Android. The app's 3-D scan technology is expected to add to the revenue-generating power of its AR e-commerce solution and its recently launched 3D/AR advertising platform.
June 3, 2020: The company achieved record revenue and gross profit for the month of May, 2020. Both revenue and gross profit showed dramatic increases in May. Notably, compared with May, 2019, the company's revenue increased 169 per cent to $1.3-million while gross profit grew 290 per cent to $800,000 representing the highest revenue and gross profit ever achieved in a single month.
June 1, 2020: CEO Mr. Gappelberg purchased 100,000 shares. It was reported that on May 5, 2020, he purchased 929,885 common shares of Nextech common stock; this is his fourth buy for the year 2020.
May 25, 2020: The company signed a contract to supply its AR solutions to Dell Computer.
May 22, 2020: The company announced very positive results for its recently launched 3D/AR ad network, which went live on
Feb. 4, 2020. Using the company's 3D/AR ads resulted in a 300-per-cent increase in sales conversions, a 32-per-cent increase in click-through rate (CTR) and a 23-per-cent-lower cost per click than traditional 2-D ads.
May 21, 2020: The InfernoAR virtual events platform was chosen to supply ARCH Insurance for its global leadership two-day summit starting June 6.
May 19, 2020: Inferno AR integrated with Cvent Solutions optimizing the entire InfernoAR event management value chain. Integration with Cvent will broaden the utility and increase the appeal of the platform by helping end users seamlessly register and become more productive while using the platform.
May 14, 2020: Q1 revenue grew 177 per cent to $2.5-million, gross profit grew 267 per cent to $1.3-million and had a working capital of $3.5-million.
May 12, 2020: InfernoAR platform integrated with all major video platforms including its previously announced integration with Zoom, Microsoft Teams, Skype, and new integrations with Cisco Webex, BlueJeans, Google Hangouts, Google Meet and GoToMeetings. These critical integrations continue to extend the capabilities of the platform, broaden the utility of the platform and help end users become even more productive while using the platform.
About Nextech AR Solutions Corp.
Nextech is one of the leaders in the rapidly growing AR industry, estimated to hit $120-billion by 2022, according to Statista. Nextech has a two-pronged strategy for rapid growth including growth through acquisition of e-commerce businesses and growth of its omnichannel AR software-as-a-service platform called ARitize.
We seek Safe Harbor.
© 2020 Canjex Publishing Ltd. All rights reserved.