NEW YORK and TORONTO, May 14, 2020 (GLOBE NEWSWIRE) -- NexTech AR Solutions (NexTech) (OTCQB: NEXCF) (CSE: NTAR) (FSE: N29), an emerging leader in augmented reality for eCommerce, and Virtual Events, reported results of its first quarter ended March 31, 2020. All figures are prepared in accordance with International Financial Reporting Standards (IFRS) unless otherwise indicated.

Q1 2020 highlights:

  • Revenue grows 177% to $2.5 million
  • Gross Profit grows 267% to $1.3 million
  • Working Capital of $3.5 million
  • Full report has been filed and is available on SEDAR
  • Q1 earnings will be released after the close at 4:30pm
    Bridge Name: Nextech AR Solutions
    Conference ID: 597-9019
    Dial in: +1 (435)-777-2200

Evan Gappelberg, CEO of NexTech. comments, “We are pleased to report that our first quarter 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 channels." He continues, “We are uniquely positioned with our AR e-commerce and Virtual Events business units to not just survive this pandemic but thrive because of it. Our pipeline of potential deals remains very high and sales activity continues to progress quickly. There has never been more business opportunity in our lifetime for virtual learning, virtual conferences, or virtual events, and e-commerce”.

Kashif Malik, CFO of NexTech comments, “I am very pleased that our team has responded so well to the restrictions imposed by COVID-19. Our level of engagement with customers and prospects remains high throughout the quarter. We were able to effectively deliver uninterrupted professional services to our customers despite the pandemic.”

NexTech AR Solutions Corp.
Condensed Consolidated Interim Statements of Financial Position
(Unaudited - Expressed in Canadian dollars)

  March 31, 2020December 31, 2019
  $$
ASSETS    
Current assets   
Cash   2,309,656   2,849,344 
Receivables (Note 3)   620,896   403,651 
Prepaid expenses and deposits   219,725   200,650 
Inventory   1,598,394   1,353,584 
Total current assets   4,748,671   4,807,229 
    
Non-current assets   
Equipment (Note 4)   137,486   146,555 
Intangible assets and goodwill (Note 5)   3,927,448   3,683,079 
Total non-current assets   4,064,934   3,829,634 
    
TOTAL ASSETS   8,813,605   8,636,863 
    
LIABILITIES AND SHAREHOLDERS’ EQUITY   
LIABILITIES   
Current liabilities   
Accounts payable and accrued liabilities (Note 6)   1,050,408   1,243,528 
Other payables (Note 7)   97,771   230,174 
Total current liabilities   1,148,179   1,473,702 
    
Long-term liabilities   
Deferred income tax liability  72,717   96,956 
Total Long-term liabilities   72,717   96,956 
    
TOTAL LIABILITIES   1,220,896   1,570,658 
    
EQUITY
Share capital (Note 9)   16,551,989   15,210,041 
Convertible debentures (Note 8)   835,830   1,025,595 
Reserves (Note 9)   2,163,919   1,407,330 
Deficit   (11,959,029)  (10,576,761)
TOTAL SHAREHOLDERS’ EQUITY   7,592,709   7,066,205 
      
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 8,813,605 8,636,863 
    

NexTech AR Solutions Corp.
Condensed Consolidated Interim Statements of Comprehensive Loss
For the three months ended March 31, 2020 and 2019
(Unaudited - Expressed in Canadian dollars)

   2020 2019 
   $$
Revenue  2,491,985   901,111 
Cost of sales  (1,144,136)  (534,094)
Gross profit  1,347,849 367,017 
   
Operating expenses  
Sales and marketing  1,499,315   696,952 
General and administrative  763,082   382,054 
Research and development  373,331   583,909 
Amortization (Note 5)  88,253   31,476 
Depreciation (Note 4)  9,849   16,093 
Foreign exchange loss (gain)  1,694   (42,981)
Total operating expenses   2,735,524   1,667,503 
     
Operating loss   (1,387,675)  (1,300,486)
Financing expense   -   - 
Loss before income taxes  (1,387,675)  (1,300,486)
Deferred income tax recovery  24,239   - 
Net loss  (1,363,436)  (1,300,486)
   
Other comprehensive income (loss)  
Exchange differences on translating foreign operations  488,316   - 
Total comprehensive loss  (875,120)  (1,300,486)
   
   
Loss per common share  
Basic and diluted loss per common share  (0.02)  (0.03)
Weighted average number of common shares outstanding61,378,508 51,030,728 
     

NexTech AR Solutions Corp.
Condensed Consolidated Interim Statements of Changes in Shareholders' Equity
For the three months ended March 31, 2020 and 2019
(Unaudited - Expressed in Canadian dollars)

 Number of sharesShare capitalEquity portion of convertible debentureReservesDeficitTotal
  $$$$$
Balance, December 31, 2018  43,687,872   6,365,393  -   423,463  (2,345,482)  4,443,374  
Partial escrow cancellation  (400,000)  -  -   -  -   -  
Acquisition of AR Ecommerce LLC  2,000,000   1,620,000  -   -  -   1,620,000  
Shares released from escrow for services  -   60,000  -   -  -   60,000  
Shares issued for exercise of warrants  8,461,500   2,605,750  -   -  -   2,605,750  
Stock-based compensation  -   -  -   361,851  -   361,851  
Net loss  -   -  -   -  (1,300,486)  (1,300,486)
Translation of foreign operations  -   -  -   -  -   -  
Balance, March 31, 2019  53,749,372    10,651,143   -    785,314   (3,645,968)  7,790,489  
       
Balance, December 31, 2019  60,509,250   15,210,041  1,025,595   1,407,330  (10,576,761)  7,066,205  
Convertible debentures  347,663   208,597  (189,765)  -  (18,832)  -  
Shares issued for exercise of warrants  513,305   406,764  -   -  -   406,764  
Shares issued for exercise of options  1,007,500   305,675  -   -  -   305,675  
Shares issued to settle related party liability  47,799   38,239     38,239  
Share-based payment  478,341   382,673  -   268,273  -   650,946  
Net loss  -   -  -   -  (1,363,436)  (1,363,436)
Translation of foreign operations  -    -  -   488,316  -   488,316  
Balance as at March 31, 2020  62,903,858    16,551,989   835,830    2,163,919   (11,959,029)7,592,709 
       

NexTech AR Solutions Corp.
Condensed Consolidated Interim Statements of Cash Flows
For the three months ended March 31, 2020 and 2019
(Unaudited - Expressed in Canadian dollars)

  2020 2019 
    
OPERATING ACTIVITIES  
Net loss  (1,363,436)  (1,300,486)
   
Items not affecting cash:  
Amortization of intangible assets  88,253   31,476 
Deferred income tax recovery  (24,239)  - 
Depreciation of property and equipment  9,849   16,093 
Shares issued to settle related party liability   38,239   - 
Share-based payments  650,946   361,851 
Shares released from escrow for services   -   60,000 
   
Changes in non-cash working capital items  
Receivables  (217,245)  (213,475)
Prepaid expenses and deposits  (19,075)  (409,887)
Inventory  (244,810)  (267,849)
Accounts payable and accrued liabilities  (325,523)  (169,480)
Net cash used in operating activities  (1,407,041)  (1,891,757)
   
INVESTING ACTIVITIES  
Cash acquired on a business combination  -   128,670 
Purchase of equipment  -   (12,125)
Acquisition of HootView   -   (85,664)
Net cash used in investing activities  -   30,881 
   
FINANCING ACTIVITIES  
Proceeds from exercise of options and warrants 712,439 2,605,750 
Net cash provided by financing activities  712,439   2,605,750 
   
Foreign exchange  154,914   95,739 
   
Net change in cash  (539,688)  840,613 
Cash, beginning  2,849,344   1,646,858 
Cash, ending  2,309,656   2,487,471 
    


About NexTech AR Solutions Corp.

NexTech is an emerging leader in the rapidly growing AR industry, estimated to hit $120 billion by 2022, according to Statista. NexTech, the first publicly traded “pure-play” AR company, began trading on the CSE on October 31st, 2018. NexTech has a two-pronged strategy for rapid growth including growth through acquisition of eCommerce businesses and growth of its omni-channel AR SaaS platform called ARitize™.

The company is pursuing four multi-billion-dollar verticals in AR.

ARitize™ For eCommerce: The company launched its technologically advanced webAR for eCommerce early in 2019 and has been rapidly signing up customers onto its SaaS platform. Customers include Walther Arms, Wright Brothers, Mr. Steak, and Budweiser. NexTech has the first ​ ‘full funnel’ end-to-end eCommerce solution for the AR industry including its 3D product capture, 3D ads for Facebook and Google, ‘Try it on’ technology for online apparel, 3D and 360-degree product views, and ‘one click buy’.

ARitize™ University: having launched in June 2019, the app-based solution allows companies and educational establishments to leverage all of their existing 2D assets - YouTube videos, PDF documents, PowerPoint decks, images, etc. - and then overlay immersive 3D-AR experiences on top of that content for an interactive training experience that drives productivity.

ARitize™ Hollywood Studios: the studio has created a proprietary entertainment venue for which it is producing immersive content using 360 video, and augmented reality as the primary display platform.

ARitize™ 3D-AR-360 Advertising Platform: launched in Q1 2020 the ad platform will be the industry's first end-to-end solution whereby the company will leverage its 3D asset creation into 3D, 360, AR ads. In 2019, according to IDC, global advertising spend will be about $725 billion.

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

For further information, please contact:

Evan Gappelberg
Chief Executive Officer
info@nextechar.com 

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”, “looking forward” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements regarding the Company increasing investors awareness are based on the Company’s estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of NexTech to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including capital expenditures and other costs.  There can be no assurance that such statements will prove to be accurate, as actual results and 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.