Nextech3D.ai has inevitably grown into a diversified augmented reality, 3D modeling platform powered by artificial intelligence. The company has developed breakthrough generative AI to make 3D models at scale for the $5.5 trillion dollar ecommerce industry.
TMH: For investors who are new to Nextech and what the company offers, what is it all about?
EG: Nextech3D.ai is a preferred 3D model supplier for Amazon. We have an AI powered 3D modeling platform that is targeting the five and a half trillion-dollar global e-commerce ecosystem. Our breakthrough generative AI technology enables the creation of high-quality photorealistic 3D models quickly and efficiently. Our suite of products includes our patented AI-based technology for 3D model creation and 2D into 3D conversion. We’ve really positioned ourselves as a leader in this 3D modeling category for e-commerce and the fact that Amazon has decided to work with us speaks to that leadership position and the fact that they’ve turned us into a preferred 3D model supplier speaks even loudly, even more loudly to that leadership position. So, we’re super proud of our Amazon relationship. There really is nobody bigger in the e-com ecosystem than Amazon and we see nothing but blue-sky opportunities ahead.
TMH: I understand the company’s strategy is acquiring and developing disruptive pure play technologies. What are the benefits of spinning them out into their own public companies?
EG: Correct. So, we’ve made 10 acquisitions since I founded the company back in 2018. Some of those acquisitions we’ve taken essentially ideas and commercialized them into products and now they’re being spun off as their own public companies once their products are commercialized. So by doing that, what we are doing for shareholders is unlocking the value that’s trapped inside of Nextech of our technology and products that we’ve been incubating for the past couple of years. If you look at ARway the symbols ARWY in Canada, ARWYF in the US we spun that out in October of 2022 at 25 cents a share. Today it’s trading at around a dollar a share Canadian and before the spinout, it really had zero valuation for investors, zero valuation for next tech after the spinout. Today’s market cap exit at around $23 million Canadian.
So, we’ve already begun this process of taking these businesses that are trapped inside of Nextech and unlocking the value by doing these spinouts and we’re about to do it again, Brieanna with Toggle 3D. We’re about to do our second spinout IPO and that will happen in early June. So if you own shares in Next Tech, the way it works is you get free shares in our spinout, it’s just a stock dividend. Instead of getting a cash dividend, you’re gonna get a stock dividend. So we’re spinning out 4 million shares on a pro-rata basis to our shareholders. Nextech’s going to retain 50% of the shares. There’s gonna be roughly 28 million shares on the Toggle 3D spin out. So Nextech’s going to hold about 13 million shares. We’re gonna dividend out 4 million to our shareholders and the rest are gonna be purchased by new investors again at 25 cents. So, lots of upside opportunity for Nextech investors. From our standpoint, we have a focus team, which is a huge benefit for these businesses. The focus team focuses on nothing but the spinout company. The shareholders of Nextech get free shares and Nextech as a long-term investor still owns a majority stake in these spinouts. So it’s win-win-win. With these spinouts we see it as creating shareholder value in a significant way.
TMH: As far as revenue goes, how does Nextech generate it?
EG: Nextech generates revenues quite simply by selling 3D models to e-commerce companies. So if you have an online store and you have let’s say a thousand furniture pieces that you sell online, Nextech gets paid anywhere from a $100 to $300 dependent upon the complexity of the product and so that’s really our business. There are 300 million products on Amazon that need to be converted to 3d. So the opportunity is north of a $100 billion. We see this as being a megatrend that’s going to keep Nextech quite busy for the foreseeable future.
TMH: Why do you think current online shopping gives a poor experience, and how do 3D models improve the experience for shoppers and ROI for brands?
EG: Well, let’s be clear. Online shopping sucks. We’ve become accustomed to it, but it absolutely sucks. It’s a poor experience for shoppers, primarily due to the limitation of traditional 2D photography. So, when you look at a product online, it is virtually impossible to tell the size, the shape, the texture of the product and what ends up happening is we as consumers end up returning like 40% of all online products gets returned. At my house, it’s just a revolving door. Amazon comes and goes like every day returning and delivering product. So online shopping is a poor experience. It’s not good for the e-com retailers because they lose money on these returns and so there’s nothing really that’s gonna replace seeing it, touching it and really trying it on. That’s really why you go to the store and shop but 3D models is the next best thing.
It improves the online shopping experience for shoppers by providing a more immersive, more interactive experience and really allows consumers to view products from all angles and explore the key features, the key details in a way that’s simply not possible with traditional 2D images. It provides a much more realistic and interactive shopping experience and ultimately makes consumers feel more confident in their purchasing decisions, reduces the likelihood of product returns and increases customer satisfaction. Moreover Brieanna, 3D models really improve ROI for brands. It helps them stand out from their competitors, differentiates them from the crowded marketplace where there’s lots of me too products out there. Brands can use 3D models to showcase their products, again in a more engaging and visually appealing way, which attracts more customers and increases sales. There’s a 40% reduction in returns, 93% higher clickthrough rate and a 250% higher conversion rate with 3D models. So in summary, 3D models improve the online shopping experience for shoppers by providing a more immersive, interactive experiences, improves the ROI for brands by helping them stand out from their competitors, increasing their conversion rate and it really just provides the next generation of online shopping experience for both the shopper and the brand.
TMH: I couldn’t agree more for example, if you’re looking for clothing, if you’re looking at someone who’s drastically different in height and size and weight, the garment’s are going to look completely different. You’re probably going to be not loving what you ordered and you’re going to have to return it. So a hundred percent I agree. More websites definitely need to do that. It would be life changing.
EG: Clothing is one thing. I mean, furniture is another. I mean imagine you get a couch home and you’re like, it almost fits, but it’s like an inch off and you try and cram it in and so all that goes away. I had a situation where I had three bar stools delivered and my wife ordered them. She said they’re gonna be off white. return it. I’m like I’m not picking these things up. They were solid wood. They weigh a ton and she calls for them to pick it up and you know what they said keep it.
So we ended up with six because it’s too expensive for them to come pick it up. So furniture, clothing, it’s a big problem and the 3D model would’ve solved that problem. My wife would’ve been able to see it in the actual color and she would’ve seen, oh, it’s not off white, it’s actually like a light yellow. So that’s worth its weight in gold for e-commerce retailers.
TMH: What is special about the company’s Artificial intelligence powered 3D modeling?
EG: Our artificial intelligence powered 3D modeling is special for several reasons. First of all, the use of AI allows for highly accurate and precise 3D models to be created quickly and efficiently. This means that the company can create high quality 3D models at scale. I am not talking about making 10 or 20. We’re talking about making 10,000 or 20,000 later this year. Hundreds of thousands of 3D models. It reduces the time the costs associated with traditional product photography which cannot scale. You just can’t scale product photography. Second, the AI powered 3D modeling technology is highly customizable. It allows the company to tailor the models to specific needs for our customers. This means companies can create 3D models that accurately reflect the size, shape, and texture of each individual product and again, it creates a more realistic online shopping experience. Third Brieanna, the use of AI allows us to continually improve and refine our 3D modeling capabilities over time as more data is collected and analyzed, the AI algorithms can be trained to produce even more accurate and detailed 3D models further improving the online shopping experience. So it’s scalable, which means it can be used to create 3D models almost to infinity. It can be used to create 3D models for a very wide range of products and industries and ultimately it allows for the highest quality 3D models where they’re hyper accurate in terms of the color, vibrant color, the textures, the right texture, the size is the right size. All those things are possible because of AI.
TMH: Who are some of your biggest customers right now?
EG: We could talk about Kohl’s, we could talk about Bucket plates, we could talk about Target, we could talk about Proctor and Gamble, we could even talk about Dyson but none of them come close to Amazon. Amazon is the blue whale, they are the biggest fish in the ocean by far and the story here is that there’s nobody bigger than Amazon in the e-com ecosystem and so we’re a preferred 3D model supplier for Amazon as mentioned early on and that really opens up a world of opportunities. Our monthly production is thousands of models for Amazon today and it is scaling, meaning thousands are going to turn into tens of thousands and on and on. So that is where our revenue is gonna start to really explode.
TMH: What can investors expect in 2023 and beyond?
EG: We have a strong focus on innovation. We are constantly developing new solutions that are breakthrough solutions. We’re constantly looking for ways to scale the production of our 3D models with our generative AI and it leads ultimately to this higher revenue stream with higher profit margins. So we’re expanding our business with new 3D model contracts. We’re landing more and more customers but most importantly our profit margins because of the AI is expanding and we’re really looking forward to taking our profit margins north of 80-90% in 2023, which is again on the back of AI
TMH: To find out more on the company head to their website at nextech3D.ai, You can also find them on the CSE under the ticker symbol ‘NTAR’, and on the OTCQX under the ticker symbol ‘NEXCF.’
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