Hello, and welcome to this Proactive Live Stream Broadcast with Nextech3D.ai. I'm very pleased to welcome the company's CEO, Evan Gappelberg, and also the Head of Product Operations, Hareesh Achi, who are joining us today to take us through the latest tech developments that are positioning the company for the future. If you'd like to join in, make sure to use the chat feature to ask your questions. We'll pose them to management today. So without further ado, here's Evan Gappelberg. Evan, great to have you with us today.
Thanks, Steve. Great to be back with you again.
So, Evan, you're really on the cusp of something massive here. Take us through what the next steps are for Nextech3D.ai as you head into 2024.
Sure. So, you know, we've invested about $25 million over the past two years into developing our AI, into developing our 3D modeling capabilities, and we really are on the cusp of a breakthrough, not just with our AI, but also with Amazon opening up Seller Central, which is a key piece to our business. I don't know that our investors fully understand how significant an opportunity that is for them. We see it as a massive, massive upside, and a really, really valid reason for investing in Nextech. And, you know, from my standpoint, you always wanna have a big catalyst.
The AI is the engine that's driving our productivity, meaning without AI, we wouldn't be able to decrease our cost of production or increase our productivity, the number of 3D models that we're able to produce. But with AI, we are able to do that. We're able to use AI internally, create AI tools to allow us to produce more 3D models at lower cost. And if you think about that, when you think about Amazon, you know, one plus one equals three here, where the AI plus Amazon Seller Central opening up is going to equal exponential growth in our 3D modeling business. We've been selling Amazon 3D models for the past year. It's been a very, very complex equation working with Amazon, one of the biggest tech companies.
You know, they're like, in the case, Amazon, Google, Microsoft. I mean, these are trillion-dollar technology companies, and they require a very, very high level of expertise. Everything has to be not 98%, not 99%, not 99.9%. Everything has to be 100%. So for the past year, we have been. We are now locked in as one of their 3D model suppliers. There's only a handful of companies that have made it through the past year. A number of companies, I've been told, have tapped out. We did not. We are still going strong with Amazon, and what that means is that the reward is right around the corner, meaning 2024 Q1 is when I believe all of our shareholders are gonna be rewarded for their patience and poise.
We go through a bear market, which I think we all can acknowledge has been quite brutal, but the reward is still very real, in my opinion. And when I look at our 2024 opportunities, 2024, just to be clear, it's really the beginning of 2024, and it's gonna continue for many years. Because, you know, Seller Central is where 10 million merchants log in every day to sell their products on Amazon. And we're talking about the same customers that we've been selling 3D models to outside of Amazon. 70%-80% of their business actually happens on the Amazon platform. And so if you think about that, it's this massive amount of demand that's been sidelined.
I'd say 80% of the demand for the 3D models that we make lives within Amazon. 80%! We've been selling outside of the Amazon ecosystem, and obviously, we also sell to Amazon corporate. But the real upside here is when we start selling inside the Amazon ecosystem to all the merchants, all of the merchants that currently are not in the market are going to be purchasing 3D models from Nextech or one of Amazon's other suppliers in 2024, and I think this is, you know, literally, I thought it was gonna happen Q3, and I, you know, I was wrong. It didn't happen in Q3, but it is happening. And so, you know, we could even talk some more about that. Hareesh, you know, Achi, who actually just came back from India, he met with Amazon in India.
Our new offices in Hyderabad are 15 minutes away from the Amazon office, where all the executives that we deal with on a daily basis and that we supply the 3D models to, they're all in Hyderabad, and Hareesh was there. They came into our office, we met them in person, and Hareesh can tell you, you know, they've essentially promised us Q1 Seller Central- and some other, you know, there's some other exciting developments that Hareesh could share as well.
Okay. Well, let's bring Hareesh in here, because Hareesh, I mean, you joined in September. Evan was talking about the big technology companies. You've worked with a number of them, so you have worked previously with Meta, also with Microsoft. How is Nextech's position for this massive scale you're going to need next year when Central comes active?
Yeah. Thanks, thanks, Steve, for having me here. And, yeah, as Evan shared here, right? AI, right? How we are thinking and getting ourselves ready for the future or getting into this 2024. Primarily, we are based on our technology, which is our AI, that we have built in-house app, which enables us to be more productive, more efficient, in our operations. And as well as obviously, as Evan mentioned earlier as well, I've been in Hyderabad, so in terms of our cost structure as well, building our office and our, majority of our resourcing, through Hyderabad in India. It helps us be more both productive and profitable on both ends, right? So we use our AI technology, which we have now, to design our 3D models, faster.
When I say faster, we have already this year built about 35-50,000 3D models within our system. We also have 1 million of mesh libraries that are available to us. So we use those two combination to build our AI technology that helps us any new 2D picture that we get, we can quickly scan through our massive library of meshes or 3D models that we have and present it quickly, like, "Hey, here's a similar one that we have done," right? So that's what the AI does for us, and that's where the productivity and the efficiency in creating enables us. So if you are going there, it's all about that productivity and efficiency through our technology and the AI that we are building and being ready for 2024.
Yeah. Hareesh, I just wanna put a finer point on that. So if you think about 3D modeling, there's two parts to a 3D model. One is what's called the mesh, that's you know essentially the wireframe, and the other piece is the texture, you know the skin that goes on top of the mesh. And those two things create the 3D model. And so we recently have been given access to a library of millions of 3D models that have been created for Amazon, by Amazon. And now we have access to be able to pull a 3D model that's similar to the new 3D model that we're trying to make. And what that does is that puts us on the 50-yard line.
It puts us on, you know, it puts us into the 3D model where we're not starting from scratch. Everything, again, is about productivity. If you think of ChatGPT, and you think of how it works, it uses data, it analyzes language and, you know, just pulls from that to create content. So if you think about what we're doing, we're going into the data, meaning mesh. The mesh library is our data, and we're pulling that forward and creating a new 3D model from that, using existing mesh and then using our AI technology to texture that. That is going to be paying big dividends in 2024. We're just getting that library.
You know, as Hareesh was saying, we've produced over 60,000 3D models ourselves, but that's, you know, a relatively small data set. That's just because, you know, it takes time to produce 3D models. Amazon themselves has been at this for, you know, five years, and they have a massive amount of 3D models already, and now we have access to that. So it's given us an enormous, enormous boost so that our AI has more data, which makes it much, much more potent when it comes to producing results for Nextech.
Well, I think I'll bring in a viewer question here, because the viewer asks: "Well, Amazon is sharing their 3D model database with you. Are they sharing with their other preferred sellers as well?
So I would say they probably are. I don't think that, you know, it's exclusive to us, but, you know, it's kind of like, you know, giving you know, somebody a bat and a ball and saying, "All right, you know, go out and and play with it." I mean, they don't make you an all-star just because they give you, you know, the bat and the ball. So, yeah, there are others, I'm sure, that they're offering it to, but we believe that our team and our tech and our process is the best in the business.
Okay. I mean, would you agree with that, Hareesh? I mean, is there something that sets Nextech apart when it comes to 3D modeling?
Yeah, I think I agree with what Evan has said. It's not, you know, we-- It's how you use it, right? I think the way I see it, as being a product person, the one thing is just getting access to it, but how we are using it is what I feel Nextech is unique in that way. We are not just using that database or that, you know, portfolio or the meshes that we are getting just to, oh, look at it and copy it. We are building our tech based on that. We are using that to increase our AI operations, AI, how we build our AI and algorithm on it. So it's, it's going-- That's the unique differentiator, I would say, that is unique to Nextech and how we are using, again-
Everyone has access, and how each individual is using it is different, and I feel like we are using it a lot more effectively and efficiently.
Also, the fact that we have Toggle for texturing it, gives us an end-to-end solution that, again, our competitors don't have. So, you know, when you think about what we have, it's now this, parts-based library. And by the way, we filed a patent for this technology. So, you know, that's also a competitive edge, potentially. But once the 3D model is actually created using this mesh, we then have the ability to put the skin on it or texture it using Toggle, which is an AI platform that we've developed. And there will be a licensing deal between, you know, essentially the models we're creating for Amazon and Toggle.
We see a future where when Seller Central opens, you know, a lot of this is gonna be automated, where we'll be able to offer people that either have their own 3D models already or people that want us to make 3D models for them, to be able to charge them to bring their 3D models onto Amazon's platform, almost as a toll taker. Just because we're a certified partner, after going through a year of being trained by Amazon, we now are going to be getting a badge that allows us to bring 3D models onto Amazon's platform, whether we created them or not, and we're able to charge whatever we want. It literally is up to us if we wanna charge $10 or $110 for this service.
It's a massive, massive, massive opportunity that has yet to show up in our numbers yet.
How competitive do you expect it to be, though, Evan?
So not very competitive at all. I mean, you're talking about. I mean, Hareesh can even lend a little bit of color to this, but because Amazon was, you know, telling Hareesh when he was there, how massive the Seller Central is. I don't know that people can actually understand how big it is. I mean, 10 million people, that's like the population of the state of New York, is like 8 million people. I think Canada only has 30 million people across all of Canada, right? The whole country. It's like a third of California. It's a massive number of people. Now, when you talk about 10 million people, that's the number of merchants. There's 300 million models. That's the entire population of the United States of America. So the numbers are massive. They're massive.
And so when you think about that, think about a dozen, maybe 2Dozen people, companies like Nextech, that actually control which models get onto the Amazon platform. Like I said, you know, it's like a toll taker. But, you know, we obviously have expertise. It's not like we're sitting there with our hand out, just taking a toll. We actually have a very sophisticated process and very sophisticated technology that we've developed with Amazon. Some of it, Amazon has developed and actually given to us so that we can do this for them as a service. And so, you know, I don't know any small cap companies with market caps like ours, $15 million, that supply Amazon any kind of service. I just don't. I haven't seen it.
It's always gonna be, you know, these big billion-dollar companies that are supplying Amazon with some kind of a service. We've done the pioneering work. This is the early days of a next generation of technology, meaning 3D models, that are gonna replace 2D images. And, you know, that I believe that the companies that are at the forefront are gonna be the next billion-dollar companies. And that the fact that we're getting in early, and the fact that we've, we've gotten in early, I think, again, is, very valuable to us as a company, and our shareholders should be rallying around this.
And of course, that speaks to the early mover advantage that you do have. And before you became a preferred supplier to Amazon, Evan, of course, you have other customers as well. And that goes to the next viewer question that we have: Are you looking at other sources of 3D modeling business outside of Amazon? And of course, we know that Kohl's and P&G are also customers of yours.
Yeah, I mean, we're constantly signing up other customers. We just had a contract go out for renewal, actually, another $50,000 worth of 3D models. You know, there was another contract. I mean, the business keeps on humming along. We get a lot of renewals, we get a lot of reorders, we get new customers coming in. But I want to reiterate, 80% of the business is on Amazon. It's on that platform, and right now it's a walled garden. You cannot get in. If you know, you can't get in. Amazon has put barbed wire around, you know, the moat. There's a moat, there's a tar pit. You cannot get into the Amazon Seller Central-
With 3D models, unless a company like Nextech or one of the other companies bring you on to Seller Central. And so that is extraordinarily valuable to our shareholders, for our shareholders, for our business. You know, to be honest, Steve, there are companies out there that I'm talking to that are sophisticated, that see the value, and they are actually talking about you know, taking a stake in Nextech, acquiring you know, a stake or or even you know, a big position. And so the reason is they understand the value. You know, these are sophisticated sophisticated investors. And so you know, the typical retail investor, unfortunately, has been very short-sighted in terms of the market. You have to be in this for the long haul.
This isn't about, you know, a quarter, this is about a mega trend. And if you believe in the trend, and the trend is your friend, that, you know, 3D models are gonna replace 2D photos, which I wholeheartedly believe is happening. And it's not just me, it's Amazon and all these other customers that we supply 3D models to. They're seeing an uptick in sales. They're seeing it, you know, Amazon says it's, you know, roughly 9% increase in sales by just, just by having a 3D model. That is driving the demand.
And ultimately, when you think about, again, the fact that 80% of the market is off the market, and that we are gonna be one of the few companies that are gonna be supplying Amazon with 3D models, it's quite exciting for me. And I think, you know, Hareesh is equally as excited as he's on the front line, you know, working with Amazon and building the AI.
Right. Yeah. Just to add there, I think, yes, I'm equally as Evan says, or even if not more excited, on this, right? I think as Evan says, it's like, it's the, you know, how we are building, for the future, how we are building a scalable operation. So that's where the question on outside, yes, we have several few other customers as well that we engage with. And it's. That's how I, I am envisioning, the technology in the, in the company, right? It's not. It's going to be scalable, it's going to be applicable across. Evan touched a little bit on Toggle as well. So it's, it's building that way, across, and that's what makes me excited, in this journey.
I think that's where we are very, you know, in the cusp of that, you know, new phases of marketing or, you know, all the 3D that's going to happen in the future. And, and we are going to be enabling that, and that's through our AI, that's through our operations, that's through our technology that we have.
Hareesh, you previously described Hyderabad as the new Silicon Valley of India, perhaps. I suppose your. The technology is changing, so from what Evan's described, even in the last year, it's advanced considerably. So how do you manage to continue to keep up with technological developments while you're at the same time positioning yourself for Seller Central?
Yeah, I think it's, it's together, I would say, right? It's not about, you know, catching up or keeping up with the technology development, is built into our preparation or getting ready or having our operations or technology, built, ready for that. So it's together. So we are leveraging. When I talk about AI, it's like obviously we are leveraging the latest and the greatest, technology advancements that are happening in the AI. We are building algorithms using some of those capabilities as well. So it's, it's to your question, Steve, that it's together. It's we are obviously constantly evaluating, constantly assessing what technology advancements are in the marketplace or what's coming up in the marketplace, and evaluating how we can implement that within our product ops.
That's how we are constantly in the marketplace, reviewing the technology and understanding the technology, and bringing that in. Our staff is as well across our company, right? So we have some of the best talent in building some of these AI capabilities, and we are using, you know, those resources as well to be upfront and be ready in this new technology evolution.
I mean, maybe, Hareesh, give us a bit of color on the Indian operation in Hyderabad, since you took over as head of product operations in September and opened the office in India. Have you managed to find the talents that you need to man those operations?
Yes, we did. Yeah, I'm super excited to give an update on that. So yes, we opened the office last month, or I just came back this past weekend from Hyderabad. We opened the office, we have team in Hyderabad already there. We already had teams available in India. We still have teams across India, obviously, though remote and things. In Hyderabad, we have bring that all together and with office space, and we have the teams in India. We are also hiring. We got a lot of good talent coming in into the organization there. So it's going well. We are growing as well, and it's you know running the back-end operations for us.
I'm super proud that the team in there, and we are getting done, and as well as, it's showing up in our, you know, overall operations and how we are improving and increasing productivity across as well. Just one month of operation so far, and we already are seeing good progress in terms of our overall efficiencies in our product development from Hyderabad.
Evan, there's a couple of questions. So, one viewer asks: Is Seller Central a guarantee? Another asks: Is it 100% going to happen? And then a third one asked: Should we expect Amazon's 2024 corporate order to be announced before the end of the year?
Yeah. So in terms of, you know, is it a guarantee? I'm gonna let Hareesh tell you his, his interpretation of Amazon's conversation with him about Seller Central.
Yeah. So just to give some context there on that, right? So Seller Central, the way I think if you think of. I mean, some of you may be familiar with Amazon Seller Central is where all the sellers go and publish their products that gets showed up on Amazon site. Being part of Seller Central, obviously opens up all the markets for us, and we enable all the sellers on the marketplace there, you know, to have 3D models. So to the, you know, how it works is obviously through connecting through a platform that Amazon has, and which is what we are now have access to that platform.
We are – that's what, as the work that we are going through with Amazon right now, is able to, you know, test all the platform capabilities, use the platform capabilities, and we also are operating efficiently and effectively within that platform. So once, I think we are almost done, I think we are, you know, getting closure on that one, and that just basically is a gateway. So when anyone says it's a toll booth or collecting toll kind of a thing, that's what I see it as, right? It's basically we are on that platform, it connects into the Seller Central, and we have it open for us. So is it a guarantee, where I see how my conversations have gone so far?
I think it's about us performing, which we are doing there, and just as I said, validating the platform with our connecting with our platform capabilities and closing that out. I think we are targeting it to be in Q1.
Yeah. So in terms of, you know, I, I could tell Hareesh was a little uncomfortable saying the word guarantee. So here, here's the bottom line, okay? They've been training us for a year on their platform. We are connected to their platform. They have told us that they're putting us into Seller Central. They've told us that we're going to be getting a press release with our name in it. I mean, does that mean that they're gonna 100% deliver, that it's a guarantee? I would put it at 99%, personally, because there's no reason for them not to. But nothing's a guarantee in this world, but it's a very, very high probability. As of right now, all lights are green.
Yeah.
Meaning they're telling us, "Yes, you're going into Seller Central. Yes, you're gonna have the access, you're gonna be able to bring customers, and you're gonna be able to hunt inside Amazon for new business." And you know, they're telling us, like, "Hey, we're actually talking to legal right now. Amazon is talking to legal," and they're gonna send us the quote, "dos and don'ts." Isn't that what they said, Hareesh?
That's correct. Like, yeah, that's to your point, yeah. Nothing is guaranteed in life, so that's where, you know, when you said. So yeah, I'm also confident about, you know, like Evan said, 90, 95, 99% there, and that's what I think. Yes, we are just finalizing some of those, you know, dos and don'ts, some marketing material, and all those things.
Yeah. Yeah, typical stuff. So again, all the lights are green. You know, I once heard a joke about guarantee, and you know, if guarantee had a brother, this would be it. Seller Central would be it. So it's like as close as you can get. But from my perspective, look, everything in the stock market, everything in business is about calculated risk. You know, what is my risk-reward? And you know, in 2023, let's just talk about the market in general. You had a massive, massive move in interest rates, which shifted the risk-reward equation quite dramatically away from small-cap and stocks in general, because you could get 5% or more in a guaranteed treasury.
A lot, $1 trillion moved out of the stock market into treasuries. Now, everything goes in cycles, so, you know, the bet now is shifting, and you're seeing that in the market. There's a shift in sentiment. The bet is now that interest rates have peaked, inflation has peaked, and the next move in interest rates is down. Is that a guarantee? No, it is not a guarantee. Anything can happen in this world, but there's a very high probability that interest rates have peaked, that the stock market is now moving towards the bull cycle, if it's not in it already. And my belief is that 2024 is going to be the year, the return of the bull, and you're gonna see small cap stocks spring back to life, including Nextech....
And when you look at, the, you know, the, the valuation of Nextech today, we have roughly a $15 million valuation. If you go back to 2018, when I took Nextech public, we had an $11 million valuation when we had zero business. This year, we're gonna clock in at roughly $5 million in revenue. In 2018, we did, like, almost nothing. And back then, $11 million, today, $15 million. We didn't have Amazon back then either. We didn't have AI back then either. We didn't have, Target, Kohl's, Procter & Gamble. We didn't have any of. Hareesh wasn't here. You know, we were like a team of 10 people back then.
So night and day company, or I should say, companies, night and day in terms of our business and technology, valuation is almost the same. So, like as I mentioned earlier, we're being approached. There's smart people out there, smart money out there. They're looking at Nextech, and they're like: "Hey, you know, are you guys for sale?" And this is at a big premium, by the way, to the current share price. And so, I mean, I'm just letting our shareholders know that there's value in the current valuation. And anybody that's, you know, missing that, you should think about the conversations we're having with a trillion-dollar technology company that controls 80% of the market that we are in. And they are essentially saying to us, "Get ready.
We're about to open the door and let you guys hunt in our platform." That's the catalyst that I believe is going to drive our share price up dramatically. That's, you know, literally right around the corner. Then when you add in the AI, which should be kicking in to high gear in Q1, and you add in the productivity that we're gonna get out of our Hyderabad new office in Q1, it all sets the stage for really a quite a significant turnaround in our valuation in 2024.
I mean, we've had quite a few questions from viewers about Nasdaq. Is this going to be the trigger for your Nasdaq listing, do you think, Evan?
Look, Nasdaq is still something that we aspire towards. With our current valuation, it's really, you know, on the, you know, the back burner. There's just no. We're not—we don't qualify at these levels. You know, when we were talking about Nasdaq earlier this year, our valuation was significantly higher. The application's still in. If the valuation does go back to $50 million or more, then that conversation becomes much more relevant. But as of today, it's not really a conversation.
I mean, you're mentioning AI and how that's going to take off in the first quarter of next year. Explain how this is going to be a game changer for 3D modeling.
Hareesh, maybe you. Do you have a demo, or are you able to show, that, the stuff we were looking at the other day, or you just wanna talk to it? Either way is fine.
Yeah. Yeah, let me. I can talk to it, and I can let me pull that as well while we are, while I'm talking here. So, a couple of things. How is it going to be a game changer, question, Steve, that you asked? For me, the way I see it is, it's, it's obviously, it's all about how we scale, how we grow, and how we are like there is market, the addressable market, when I look at it, is in the millions, the more than millions, multi-millions, that we have. And, what I am, thinking of when I think of AI and how I'm building it, it is where it's, tries to enable us for that scalable operations and scalable product development. Let me try to bring something here and show you, so a screenshot of the.
How we are thinking of it. Hold on, give me one minute. And also as well, when I think of how it sets us up and how it increases our productivity, it's all about.
Yeah. While Hareesh is opening up, yeah, it's basically, you know, as Hareesh is saying, it's about scale and volume. So think about it like this: if one human sits at a computer, and they are trying to create, let's say, a 360 model from scratch today, they're able to, let's say, make two or three 3D models in a, you know, six or eight-hour period, depending upon their skills. But when you add in the AI component, their productivity can go up by 10x, and that's the thing. I mean, listen, you're paying that person the same amount of money, regardless of whether they make two models or 20 models. We get paid, on the other hand, a significantly more amount of money by delivering 20, if, you know.
So let's just say it's $100 per 3D model that we're selling, the models at. If we're able to have an artist produce two a day, that means that artist is generating $200 per day in revenue, and maybe we're paying that artist, let's just say $25 or $50 per day. So that's our business. Each artist represents another, opportunity for us to produce 3D models. Now, if we give the artist some amazing AI tools, where they're able to now produce, instead of two models, 20 models, our revenue goes from $200- $2,000 from that one 3D modeler, and they're maybe gonna make a bonus, and instead of making $25 or $50 a day, hey, maybe they make $100 or $200 a day. I'm talking about in India.
Everybody wins. It allows us to scale, it allow them to make more money, and it allows us to deliver, you know, for a massive, massive number of clients that are looking for 3D models on Amazon. And so our productivity goes up, but also our profits go up. If you follow the math, our profit margins go through the roof when the AI becomes fully functional for these 3D artists. The 3D artists still have to be there. They. You know, you still need a human. Think of it as a pilot and a co-pilot. It's kind of, you know, that scenario, and you hear Microsoft talking about co-pilot a lot with AI, that the co-pilot is AI.
And so, you know, the artist is the pilot, and, you know, all of a sudden, the co-pilot, instead of only being able to help you a little bit, all of a sudden is able to do significantly more and enhance the pilot's productivity. That's really the bottom line with AI across all industries.
Yeah, I think exactly. I think it's all about productivity, and as you can enhance the productivity, then you have more capabilities, and then you have more capacity to scale the business, and that's when, as I would talk about the margins and the, you know, numbers start showing up, and it's just exponential growth from there. So just giving you guys an idea of how, what I'm thinking when I say AI. So let me see if this share will work now. Can you guys - yeah, okay. So if you see this-
There we go.
Yeah, now you can see, right?
Yeah.
So see this. What I'm showing you the screen, how it looks in front of an artist, right? So what it is, is you upload the left side of the images as the image that, you know, someone uploads into the AI tool, and the AI in the right side gives them options on, "Oh, we have all these 3D already in our database, and would any of these match for you to work or pick it up?" So for the artist, almost like if it's your top computer desk that you have on the first one there, pretty much matches. The third one is very close, or the fourth one is very close to what they have as an image. They pick it up, and that's it.
They already got 80% of the mesh created, and then they just go ahead and fine-tune it, enhance it, so-
Yeah.
Black color versus-
Hareesh, I learned on the call, you know, 'cause we have calls with our AI team, and I'm like... You know, I asked them, like: "Oh, so is the 3D model include the stuff on the desk?" Meaning, you know, the monitor, right, and there's like a picture or whatever. And they're like: "No." And so I'm like: "So how does that work?" They're like: "Well, we're creating an algorithm to block out everything but the 3D model that the artist is gonna reproduce." And so it goes beyond like showing, you know, selection. But, I mean, look at this, you could see that there's an enormous amount of content that we already have, and we're now going in and reusing that, and you could see how similar a lot of products are.
Yeah.
Here's another example.
Exactly. So what I was talking about, taking off the, you know, backgrounds, right? So you get a picture of the bed on the left with all the painting on the wall, the nightstand and everything. We have AI technology today that just removes the background, gives you just the table, right? And has some text on the image. We can remove it automatically and put it up. So this enables, right? So that way, like a room with a table here, you just get the table that you want, clear 3D off. So, this is where how we enhance productivity. And then the next one I want to show you also is we enhance that further, right? So these are all the meshes that we have created, and then we have this primary text that we are showing.
For each, we are storing it, in that way in our database as well, right? So every measure that we create, it knows, it describes it. The primary item is in this image is a standing desk, which has a computer monitor. The reason why we are doing that, again, this is automated, generated through AI. It takes the image, it builds it, we fine-tune it, we need to make sure the description is accurate. But the reason we are doing this as well, is because an artist can go in and, "Hey, I want a standing desk," and then types it, because it's like, think of ChatGPT text that you're typing in. We want the, our internal teams to be able to type it in and-
Yeah
and get the mesh out.
Yeah. This, this is what got me really excited, Hareesh, the other day, is that so we've created these meta tags, that are basically text tags that go with each, 3D model, and when you type, you literally type into our internal search engine, dining table made of wood, four black leather chairs around it, and the AI goes searching through our database, and within a nanosecond, pulls up three or four or five, matches. And it's magic. It's freaking magical, and it's, it's incredibly productive for our team to be able to do this. Think about it, they've already done the 3D model, or somebody has. You don't have to do it all over again from scratch.
You know, I mean, when you look at every couch, there's always four or six legs, or every chair, there's always four legs, right? There's a back, there's a seat, right? You know, every window has panes, every, you know, room has a door. I mean, all these things are standard, and so if you don't have to recreate from scratch, if you're able to go into your library and pull out something similar or almost exact, think about the power of productivity that you get from that. It's massive, and it's, it's the same thing again with like ChatGPT, it's the same thing with all the other AI platforms. It's only as good as the data, as the input. If you don't have those inputs, you're just never gonna get, you know, the same efficiency. You're never gonna get that, that enhanced productivity.
No matter how, you know, good you are at programming the AI, if you don't feed it the actual content, in this case, it's 3D models and meshes, it's just never gonna be able to. So right now, I just want to be crystal clear, we have had a breakthrough in our ability to tap into Amazon's library, and that now gives us this enormous, enormous database to feed our AI and allow us to really scale our productivity in a massive way. So it's an exciting time for us.
We think, you know, this is very timely, that this is happening right before Seller Central opens up, and we think as when Seller Central does open, having all these AI tools and having our team in Hyderabad in India is going to pay massive dividends for our shareholders.
So obviously, there's a massive focus on Amazon and Seller Central at the moment. Now, John, who was on your call yesterday, posed a question, "Now, what, what's happening in, international markets?" I mean, are you looking at companies like Alibaba as well? Would that be a big opportunity?
Yeah. So, one of the strategic partners that is interested in acquiring a large stake, or more in Nextech, is in that world, and, you know, they are interested in a license and selling to those into those markets. So yeah, I mean, there's definitely discussions going on about expansion. We're already in North America, the European, and the Middle Eastern markets. We already have customers throughout those regions, and the next region for us would be Asia and the Pacific.
We already have our office in Hyderabad, India now, so that's where I think even expansion when you're thinking, we already are exploring those areas as well. India and Asia market in general is on our radar right now, and a lot of opportunity there, right? Everything, like what we have done so far in 3D, it's again, again, it goes back to that, how we are building our company for a scalable and growth pro, you know, growth-enabled engine that we have, while, you know. So that's what we are thinking. Like, we already built this now, it's just a matter of how we maximize our ROI through all these different markets that we can go into.
All these furniture stores, there are so many furniture stores across the world, and all these can use 3D, right? Definitely. They want to— all customers will be in the. Going forward, using 3D to shop as well. You know, Apple's-
Yeah
Vision Pro glasses are coming up. What is the purpose of those? Not just gaming, right? They also have see-through in the Vision Pro. What's the purpose of that? It's about how we can enable shopping as well. Meta has Quest Pro. I worked at Meta. I know some of the, you know, the product hardware roadmap that they are building and the purposes of them. It's about how do we enable future shopping through immersive experiences, you know, through. All it starts with building 3D into that.
Yeah. Yeah, and I would even go so far, Hareesh, as to say that Amazon and Meta, I'm sure are talking about integration where, hey, you're wearing a Meta headset, you want to shop on the Amazon platform, there's a link, you're in Amazon. All of a sudden, hey, 2D photos mean nothing when you're wearing a VR headset. You want everything in 3D. Otherwise, you know, it's not gonna look good. So, you know, all of this is going to accelerate, and it's you know, it's literally just getting started. From my perspective, you know, again, I'm being approached by groups that want to acquire a big stake in our business at much higher valuations, and I would just say that, right now, everything that we're doing is for the future.
Everything that we're building is for this future, where 3D models are the standard. You have to have a 3D model if you wanna be on Amazon platform. Amazon was telling Hareesh that if, you know, they can't force people to. Actually, this is a very interesting little stat. You know, Hareesh and I chitchat a lot, and he told me something, and it was like, it kinda blew me away. Amazon isn't going to force people to have 3D models. I think legally they can't force you to do something like that, but they can incentivize you by showing your product first in search if you have a 3D model. Isn't that what they said to you, Hareesh, that-
Yes, you can look up right now, even on Amazon, right? The way the results show when you search on Amazon app or website anywhere is that, right? The Amazon's preferred or Amazon's Choice, I think they call it, that shows up on the top. It's same with, right, if you have a 3D, like, you know, search for a gaming chair online on the app, you'll see first few results are the ones that have AR 3D in them. Then you get the. So again, that's what comes back to earlier point on sellers. You have many, so many sellers selling a simple game chair, or not a simple, but a gaming chair, for example, and only those who have AR in them show up first, and then there is Amazon's Choice.
So this is where I think we see AR getting more utilized or being implemented across every platform.
Yeah, think about that. You're an Amazon merchant, you're seeing your product go down in rankings, and you're gonna wonder why. Because 3D models are replacing your ranking, and the next thing you're gonna do is call up Nextech or one of the companies and say, "Hey, we need 3D models." And you're not even gonna say how much, you're just gonna say, "We need 3D models," because literally, your business is at risk. I mean, think about it. If you can't be found on Amazon's platform, you're out of business. Like, there's just no two ways about it. So if they start ranking, which they are, 3D models higher than 2D photos, they're basically saying to you, "You better get your 3D models." And Nextech is gonna benefit from that in a massive way.
I mean, again, I'm I can't put a number on it other than to say that there's 300 million products on Amazon, they've only converted less than 5%. That means 95% is still out there for the taking, and, you know, that's worth, you know, my calculations, $100 billion. Obviously, it can't happen in a year. This is something that's going to happen over a period of years, and it's just a massive, massive pivot from 2D shopping to 3D, and the AR headsets and the VR headsets, it's all part of this ecosystem that, you know, the 3D model and, and, you know, the shopping experience are all connected to a VR and, and AR glass experience.
If everybody can just, you know, think about that for a minute, even after this live stream, I think people are going to start to have a little more clarity about the future and about what Nextech's building towards.
Sounds like you're very well positioned for it. We're running out of time, so, Hareesh, do you have anything else you'd like to tell the viewers today?
I think, again, just to add there on the market, addressable market, how the industry is going to evolve. We touched a little bit on the glasses. The whole future of retail shopping, if you think of it, when you wear a VR, instead of doing it on a 2D screen on a phone, when you wear a VR headset, you can as well feel like you are inside a shopping mall, right? And then Amazon could be a shopping mall inside your VR, and you are just walking in your VR and shopping, add to cart, add to cart, add to cart, add to cart, those things. And to do that, you need 2D. So I think the future, and even which is already here already, it just needs to be quite. It's going to be massive going forward.
Once these devices and ecosystem comes in, right? Like, you got Apple devices, you got Meta devices, you have these things coming in. We feel like we are rightly positioned, we are there, and that's what we are going to capture majority of the addressable market that's out there. Not just Amazon. Again, yes, Amazon, we are already in there, but think of any other e-commerce thing you can think of. Everything is up for 3D. Everything has to start with a 3D for that to be ready for the future experiences.
And, Evan, the last word goes to you.
Yeah, I would just say to our investors that, you know, stay the course. We've made it through to, you know, I was saying to Hareesh a little earlier, like we're on the one-yard line with Amazon and Seller Central. We've made it all the way here, and now, you know, our valuation is the lowest it's been in five years. I mean, it's kind of ironic. Obviously, for investors, it's, it's painful, but if you, again, get past the emotion, look at this, from a different lens and, and see that, hey, the company's actually positioned better than ever, and there are suitors circling, and, and interested in, in our business because they, they see the opportunity at these low, low prices.
I think, again, our investors need to just think about staying the course and not getting emotional about the share price and focusing on the future and the potential of this Amazon Seller Central opening up in Q1.
Gents, we have to leave it there for today. Thank you both very much for your time and your insights.
Thanks, Steve. Thanks, Hareesh.
Thanks.
That's Evan Gappelberg, the CEO of Nextech3D.ai, and Head of Product Operations, Hareesh Achi. Thanks also for being part of this Proactive live stream event. Enjoy the rest of your day.