Nextech AR Announces Multiple New 3D Modeling Contracts

Rhea-AI Summary

Nextech AR Solutions Corp (NEXCF, NTAR) has announced the signing of 26 new 3D modeling contracts in July and early August 2022, with 7 of these being with major brands. The demand for 3D models is increasing as more companies transition from 2D to 3D e-commerce solutions. CEO Evan Gappelberg noted that existing customers are moving from test phases to longer-term contracts, indicating strong growth potential. The company is preparing to ramp up its 3D modeling capabilities from thousands to tens of thousands of models per month to meet anticipated demand.

Positive

• Signed 26 new contracts, indicating strong demand for 3D modeling services.
• Transition of existing customers from test phases to longer-term contracts, enhancing revenue predictability.
• Plans to scale 3D modeling capacity significantly to meet growing e-commerce demand.

Negative

• None.

TORONTO--(BUSINESS WIRE)-- Nextech AR Solutions Corp. (“Nextech” or the “Company”) (OTCQB: NEXCF) (CSE: NTAR) (FSE: N29), a Metaverse Company and leading provider of augmented reality (“AR”) experience technologies and 3D model services is pleased to announce that the Company has signed numerous new 3D modeling deals throughout the month of July and early August, 2022.

Nextech AR has signed 26 new contracts, with 7 new contracts since July 1st with major brands, and 19 additional deals as “ tests”. These are in addition to the previously announced deals in 2022. The Company is seeing a rapidly growing demand for 3D

• Santa Barbara Lighting - contracted for 3D models of lanterns and product configurator
• Sports Basement - contracted for 3D models of bicycles
• Life Fitness - contracted for 3D models of high-quality treadmills
• Arena - contracted for 3D models of sports equipment
• TekTake - contracted for 3D model of outdoor seating set
• Vornado - contacted for 3D models of fans
• Vcommerce - contracted for 3D model of a Land Rover Car
• Strange Universe - contracted for 3D models of unique lamps
• Fiskar’s Group - contracted for 3D models of whiskey glasses and a Wedgwood plate for their clients
• CG1 Solutions - contracted for 3D models of a cup and saucer for their clients
• Deslit Furniture - contracted for 3D model of a unique sofa
• Peah Management - contracted for 3D models of their furniture
• Mathis Brothers - contracted for 3D model of a couch
• HNI Corporation - contracted for 3D model for a fireplace and product configurator
• Clutch & Co - contracted for 3D model of their Clutch Stretch Golf Pant
• Shop by BDB - contracted for 3D model of a jacket
• Global Equipment - contracted for 3D model of a drinking fountain
• Mouse Marketing - contracted for 3D model of a Johnny Walker bottle
• Xion Global - contracted for 3D models of bitcoin
• Virtual Spaces - contracted for 3D model for a weekend bag
• Living NFT - contracted for 3D models of posters
• Chris Willey Consulting Services - contracted for 3D model of a Nutella jar
• Eden Galleries - contracted for 3D models of cartoons
• Epreneurs - contracted for 3D model of a trophy
• Augment Agency - contracted for 3D model of a Malibu 5K Medal
• Vibin Toys - contracted for 3D models of adult toys

Nextech AR CEO Evan Gappelberg commented, “Our ARitize 3D offering is being widely accepted by both enterprise customers as well as Shopify merchants and Amazon which has led to strong foundational growth of our business in 3D models for ecommerce in the first half of 2022. A lot of the deals in the first half were to “test” 3D models and see how the integration between platforms work. Now that we have laid the foundation we are seeing strong re-orders and are expecting an acceleration of new customer contracts. Also our existing customers are now exiting the “test” phase which usually last 3-6 months and are now entering larger 12 month MRR contracts. We expect these existing customers' re-orders and scaling up of global demand for everything 3D to drive our growth in Q3, Q4 and 2023 as the ecommerce industry demands shifts into high gear for Web 3.0 and emerging digital technologies. In anticipation of this rapidly growing demand we are ramping up our 3D modelling capabilities from thousands of models per month to tens of thousands of 3D models per month. We are also expanding our revenue potential through the expansion of our technology stack with the most recent launch of our ARitize Configurator." He continues, “More and more companies and brands within the ecommerce ecosystem are recognizing the benefits and ROI of our ARitize 3D product offering. We firmly believe that the transition from flat 2D photos to 3D models is now in full swing and that 3D models are currently being established as the standard in e-commerce throughout the globe.”

These “test" contracts represent entry contracts with a limited number of SKUs so brands and businesses can test Nextech AR’s proprietary AI-powered 3D/AR eCommerce solutions. When the test’s are successful, 90% turn into larger deals which result in longer contract durations and increased revenue for the Company.

In the first half of 2022, the Company saw strong demand from ecommerce merchants both large and small to “test” 3D modeling deals, further continuing its rapid expansion and growth into Web 3.0 and creation of digital twins for eCommerce. These contracts include companies and brands with a variety of different product types from multiple industries, including furniture, home goods, sports equipment, art, lighting, petwear and more.

ARitize 3D

ARitize 3D is your one-stop- integrated AR solution with automated 3D model creation and configuration at an unbeatable price. Our Artificial Intelligence (AI) will turn your existing 2D product images into high-quality 3D and Augmented Reality experiences. It's fast, it's easy and it will transform your ecommerce website.

With a 3D model, clients can interact with the product to see every detail with a 3D model: turn it, spin it, zoom in, zoom out, leading to 40% lower product returns, 93% higher click through rate and a 90% reduction in product photography costs. The Company believes that this value creation and ROI is leading to the rapidly growing demand for the Company's 3D technology. Transform your online store into a dynamic virtual showroom. 3D models allow customers to see products from every angle and position them in their own space prior to purchasing. It's an exciting, immersive shopping experience that keeps customers more engaged, better informed and helps your brand stand out from the competition.

ARitize 3D is the One-Stop-Shop 3D + AR solution for ecommerce that is:​

• Affordable - ​lowest cost provider
• Scalable - fastest, seamless ​, high quality
• Frictionless - requires low implementation effort ​
• AI & ML powered - automated 3D model creation
• End to End - from model creation to CMS & AR visualization

To learn more, please follow us on Twitter, YouTube, Instagram, LinkedIn, and Facebook, or visit our website: https://www.Nextechar.com.

About Nextech AR
Nextech AR Solutions is the engine accelerating the growth of the Metaverse. Using breakthrough AI, Nextech AR is able to quickly, easily and affordably ARitize (transform) vast quantities and varieties of existing assets at scale making products, people and places ready for interactive 3D use, giving creators at every level all the essential tools they need to build out their digital AR vision in the Metaverse. Our platform agnostic tools allow brands, educators, students, manufacturers, creators, and technologists to create immersive, interactive and the most photo-realistic 3D assets and digital environments, compose AR experiences, and publish them omnichannel. With a full suite of end-to-end AR solutions in 3D Commerce, Education, Events, and Industrial Manufacturing, Nextech AR is in a unique position to meet the needs of the world’s biggest brands and all Metaverse contributors.

Nextech funds the development of its AR and Metaverse growth initiatives through its e-Commerce platforms, which currently generate most of its revenue. Nextech's e-commerce platforms include: vacuumcleanermarket.com (“VCM”), infinitepetlife.com (“IPL”) and Trulyfesupplements.com (“TruLyfe”). VCM and product sales of residential vacuums, supplies and parts, and small home appliances sold on Amazon. These e-commerce platforms serve as an incubator for developing and testing Nextech's leading edge AR, AI and machine learning applications for powering next-generation e-commerce technology.

Forward-looking Statements
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Certain information contained herein may constitute “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, “will be” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements regarding the completion of the transaction are subject to known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove to be accurate, as future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Nextech will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220811005182/en/

For further information, please contact:

Investor Relations

Lindsay Betts

investor.relations@Nextechar.com

866-ARITIZE (274-8493) Ext 7201

Nextech AR Solutions Corp.

Evan Gappelberg

CEO and Director

866-ARITIZE (274-8493)

Source: Nextech AR Solutions Corp.

FAQ

What recent contracts has Nextech AR Solutions Corp signed?

Nextech AR has signed 26 new contracts for 3D modeling services, including deals with seven major brands.

What is the impact of recent contracts on Nextech's revenue?

The transition of customers from testing to longer-term contracts is expected to enhance revenue stability for Nextech.

What growth strategy is Nextech AR pursuing?

Nextech AR plans to scale its 3D modeling capabilities significantly, increasing production from thousands to tens of thousands of models per month.

How does Nextech AR's CEO view the future of 3D modeling?

CEO Evan Gappelberg believes the demand for 3D models will continue to grow as e-commerce evolves towards more immersive experiences.