Nextech3D Ai Corp

I will now turn the call over to Julia Viola, Investor Relations at Nextech3D.ai.

Hello, and welcome to the Nextech3D.ai Q3 2023 earnings call. With me on the call are Evan Gaffelberg, Chief Executive Officer, and Andrew Chan, Chief Financial Officer. Today, after markets closed, NextTech3D.ai released its unaudited financial and operating results for its third quarter, ended September 30, 2023. A copy of the earnings disclosure is available on our website and on CDAR. Some of the information discussed on this call is based on information as of today, November 29, 2023, and contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those set forth in such statements. For a discussion of these risks and uncertainties, you should review the forward-looking statements disclosure in the earnings press release as well as in our APDR filing. During this call, we will discuss IFRS results and key performance indicators. Neither this call nor the webcast archives may be recorded or otherwise reproduced or distributed without prior written permission from NextTech3D.ai. To begin our call, Evan Gaffelberg, CEO, will discuss Q3 2023 highlights as well as recent business developments, followed by Andrew Chan, CFO, who will review our financial results and outlook. Finally, Evan will provide closing remarks before opening up the line for a question and answer period. I'll now turn over the call to the CEO and founder of Nextech3D.ai, Evan Gaffelberg.

Thank you, Julia. So, Q3 is in the rear view, and we're now deep into Q4, but... Myself and my team are very, very focused on 2024 because that clearly is the next big growth opportunity for Next Tech. As we look at our Q3 numbers, they were solid. Really, our nine-month numbers are what I'd like our investors to focus on. showing almost 100 growth but before we even get into the numbers i want to just speak to our valued shareholders um it's important to keep everything in perspective and i think a lot of times things get out of perspective especially in the stock market when everybody's consumed by share price share price and share price obviously our share price in my opinion is extremely undervalued relative to the business prospects that we are currently seeing. We are currently navigating a very dynamic landscape in the technology industry, and I really want to provide a little bit of an update about what lies ahead. But first, I think it's important to take a minute to talk about artificial intelligence. Globally, artificial intelligence or AI has become the epicenter of this technological transformation that we're witnessing. And the innovation that AI is bringing is creating already in 2023 billions of dollars in value. And I believe in 2024 and beyond, it will create trillions of dollars in valuation in the stock market. It has been said by many, many smart people that AI will impact civilization more profoundly than fire, more profoundly than electricity, and even more profoundly than the internet itself. Those are the foundational technologies that we stand on today. and AI is going to eclipse all of them. At Nextech, we are not just recognizing this transformative potential, we are actively harnessing it to drive productivity across all our businesses with a particular emphasis on our 3D modeling venture. So let's address some key questions that you might have. How does AI actually work? How are we integrating AI into our operations? What can we realistically expect from our AI initiatives? And the most intriguing question, you know, that everybody, can AI predict our share price? Let's talk about AI and how it works. At its core, it involves the creation of algorithms. We have Three, four full-time employees that work on AI algorithms at Nextech in-house. That cannot be understated how valuable that team is to us. They create algorithms and models that enable machines essentially to mimic human cognitive functions such as learning and problem solving. And it happens instantly. with these algorithms, whereas it might take me or my team weeks or months, it becomes instant. In practical terms, AI models, it creates models after analyzing vast amounts of data to identify patterns, make predictions, and continuously refines itself based on new information. It's dynamic. And it's the evolving process that allows us to automate complex tasks. For Nextech, we're using it primarily for the creation of 3D models. We have our own AI models tailored directly to our unique business needs. And if you think of our 3D modeling business, I've said many times, it's a massive opportunity. The AI is bringing that opportunity to our footsteps. It's allowing us to work with the likes of Amazon and really makes me very, very excited about our future because we're using AI to identify models that we've already made parts within those models and really allowing us to increase and optimize our productivity, faster turnaround times, higher quality models gives us a competitive edge in the market. This is already starting to take hold at Nextech. It's incredibly exciting and valuable to talk about this, and we will talk about it some more. tomorrow on our live stream. The bottom line is we're lowering our cost of production and increasing our productivity. That's what you want in any business. So what can we expect? Our commitment to AI is driven by the belief that it can take our business to the next level. not something that happens overnight. AI needs data. Up until recently, the data we were feeding it was the 3D models that we were making. But recently, Amazon has given us access to their library of millions and millions of models. We're now feeding our AI additional data. We anticipate that that is going to pay huge dividends in increasing our productivity, reducing our operational costs, and ultimately set us apart in the rapidly evolving tech landscape. The potential applications of AI in our 3D modeling business alone are vast and very, very valuable. Can AI predict share price? Well, unfortunately, no. but they can predict market trends or at least analyze them. They can identify patterns and it does allow us to make more informed decisions that contribute to the overall success and resilience of Next Tech. If you look at our AI journey, we're leveraging cutting edge technology to drive tangible business outcomes And as we continue to integrate AI into our operations throughout our multiple businesses, we're confident it's going to deliver profit and cash flow for years to come. It just takes some time. But we are on the path. Now, if we look at Q3, 2024, 2023 results, we made a strategic pivot. Everybody should know by now, we pivoted to India. And that caused a bump in the road. Ultimately, it's going to pay huge dividends in 2024 and beyond, but the pivot was real, it was hard, and it was a bump in the road. And what that means is that Q3 did not meet our usual high standards in terms of revenue and in terms of profit margin. But it's a temporary bump in the road. That's what a bump is, a temporary thing. So it was a strategic decision we made during Q3. And ultimately, we are back on track. And we are making an enormous amount of progress in our new business venture in India. And this was a strategic move that we essentially did with our eyes wide open geared towards optimizing costs, enhancing our productivity as we prepare for hyperscaling in 2024 with Amazon and Seller Central. If you look at pioneering technologies, and you look at companies that are working in this space, it's not without its challenges. And I'm the first to admit that. So as a startup, our journey has been marked with an occasional bump in the road, but it's overcoming these challenges that really demonstrate our resilience and commitment to our shareholders and the innovation. And we are extremely focused on our future growth and on our business in Q4 and 2024 and beyond. If we look at Q3 results, they may be seen as mediocre, but it's essential to recognize the broader context of our ongoing business in that we've clocked in with almost 100% growth in 2020 over 2022. If you compare apples to apples, 3D modeling business to 3D modeling business. And the AI breakthroughs that we just spoke about are going to contribute significantly to our growth and profitability in 2024 and beyond. If we look at some of our portfolio companies, ARWay is having a tremendous amount of success. Toggle is struggling a bit. ARWave is one of our spin-outs. They're making enormous strides. Over 50 new accounts signed up in just the last few months, and the outlook for 2024 is exceptionally positive. We anticipate ARWave to be a breakout success story for our company. On the other hand, Toggle has been facing some challenges in finding its product market fit in the SAS world. But on the flip side, it's been making substantial progress in the Amazon model texturing niche. So while Toggle is struggling to get mass acceptance on the SAS business, it is executing on delivering enhancements to our productivity using its AI texturing for Amazon production that we do. And we expect that Toggl is going to overcome its current hurdles as we move it from a pure SaaS to a pay-to-use platform and royalty model. So to conclude, AI is the key to our future business. It's breakthrough technology. It's going to allow us to create 3D models faster and cheaper. I believe we're on the cusp of a significant breakthrough that promises to have a materially positive impact on our business in 2024 as AI and 3D models continue to shape the future of e-commerce. We have positioned ourselves at the forefront of this transformative ways wave and we are ready to capitalize. If you look at technology as a whole, it's fast evolving. Adaptability is key to sustained success. Our strategic pivot, the robust performance of our way and the promising developments of our AI library showcase our commitment to navigating challenges and seizing opportunities. As we approach the end of 2024, I remain optimistic about our position in the market and the potential for 2024 becoming our breakout year. One more thing of note. During my marketing efforts for our financing, which we just concluded today, We received an enthusiastic response from our existing shareholders, and I want to personally thank them for their continued support of our dream. I've also met with new investors who, quite frankly, were puzzled by the current valuation. They were scratching their head. These are high net worth investors. global investors. Some of them were individuals, but others were strategic investors. And they were quite puzzled by the current valuation. And with that, they saw opportunity and they made acquisition overtures. due to the extraordinary upside and the low valuation. And although I cannot comment explicitly at this time, we are in multiple M&A discussions, all with the intention of increasing shareholder value. I want to thank all of our shareholders for your continued support and trust in our vision We look forward to sharing more positive updates as we continue to embark on this exciting journey together. With that, I'm going to turn it over to Andrew Chan, our CFO.