Hello, welcome to Virtual Investor Conferences. My name is John Viglotti, and on behalf of OTC Markets, we're very pleased you joined us for our next presentation from Nextech3D.AI. Before I introduce our speaker, a few points to note. Please submit your questions in the question box to the left of the slides. If you're interested in meeting with Nextech3D.AI, please click on the Scheduled Meetings tab found in the platform navigation bar.
You'll be able to view the company's availability and submit a meeting request. On a final note, all of today's presentations will be recorded and available for 24/7 replay. At this point, I'm very pleased to welcome Evan Gappelberg. He's the Chief Executive Officer of Nextech3D.AI, which trades on the OTCQX Best Market under the symbol N-E-X-C-F and on the CSE under the symbol N-T-A-R. Welcome back, Evan.
Thank you, John. Nextech3D.ai just rebranded. We previously were Nextech AR Solutions. Our mission is to own, control, and monetize multiple pure play technology companies. My background is Wall Street and creating shareholder value for over 20 years. Started out taking companies public. Take-Two Interactive Software was a company I took public.
We raised $6.5 million. Today, that company has over a $20 billion valuation. Most importantly, it was the gaming mega trend. It was the beginning of the gaming mega trend when Take-Two went public. I also took a cannabis company public, and that stock went from $0.05 to $2 in 18 months. Again, that was the cannabis mega trend. Nextech, I am the founder and CEO of. We took that public at $0.25, and in 20 months, the stock hit $10.
Again, that was getting in front of a mega trend. 3D, AI, AR, ML, those were the mega trends. ARway, again, another IPO that I took public. I fund these companies and that stock went from $0.25 to 2 in six weeks, creating a tremendous amount of shareholder value for Nextech because that was a spin out of Nextech AR Solutions.
That was getting in front of, again, another mega trend, spatial computing and AI. If you look at my track record, it's pretty definitive. We get in front of mega trends. We take companies public and/or we operate public companies. The internet, that was the mega trend of the 1990s. Smartphones have been the mega trend, really for the last decade and a half.
Today, AI is clearly just beginning its mega trend status. We have a whole portfolio of AI-driven, AI-powered companies essentially inside Nextech. ARitize3D is our 3D modeling company, and we acquired Threedy.ai, so we were kind of ahead of the curve back in 2021 getting into AI with that acquisition. ARway, we've incubated. We spent a year and a half really incubating that.
That's a pure play public company, symbols ARWY in Canada, ARWYF. Toggle3D, we're going to be spinning out as its own standalone public company in the next 60 days. If you own Nextech shares, you will get free shares in Toggle3D, another IPO. At Nextech Event Solutions, we acquired in 2020. We've been incubating that, and that's set to scale. If you look at our cap structure, pretty tight.
Market cap's just over $50 million. Insiders own about $15 million, 15% rather. We own $13 million shares in our spin out ARway, which is worth almost $13 million. I think our stock is hugely undervalued at these levels. It's come down quite significantly, and that represents an enormous buying opportunity in my opinion.
If you look at our business, each one of our businesses, again, we're diversified, so it's not like we just do one thing, but they all are driven towards end-to-end solutions for these within these mega trends. You know, AI is clearly the biggest mega trend happening today. 3D modeling for e-commerce is another mega trend. Augmented reality is another mega trend. Machine learning kind of tucks right in to the AI mega trend.
ARitize3D, total addressable market's around $100 billion, which is just massive for 3D models for e-commerce. If you look at our technology, it's an AI-powered 3D modeling machine. We just landed Amazon in Q3 2022. And we also landed Target in Q1 2023. Our business is starting to really scale. We are the lowest cost, highest quality producer of 3D models for Amazon and over 100 other accounts.
Toggle3D is a 3D design studio, takes CAD files and converts them into lightweight poly files. It has about $11 billion TAM. Again, it's an AI-powered platform. It's self-serve, which is different than what we do for Amazon and Target and others. Toggle3D is a SaaS platform. The magic there is there's no learning curve. It's a web-based platform.
It's collaborative. Anyone can use it. You could literally sign up for a free account on Toggle3D and be using that like a pro today. You don't need any training, and that's what makes that platform so potent because all of its competitors require you to spend, you know, months and months training before you can actually be proficient.
Toggle3D is being IPO'd. We are spinning that out. We're, you know, in process now. The capital's already been raised, and Nextech shareholders will get a total of 4 million shares distributed on a pro rata basis to shareholders of record. You know, if you buy Nextech stock, you get free shares in Toggle3D, which isn't a bad thing. Nextech Event Solutions addresses a $50 billion total addressable market.
It's an event management software. It's an end-to-end solution for live events. If you're putting on a live event, you could sign up to our platform, and it'll manage your ticketing. It'll manage your booth sales. It'll manage basically everything that you do at a live event. We have over 900 customers. That platform is starting to grow quite rapidly.
Again, ARway is a spin-out company that we own 50% of, and that's for augmented reality wayfinding. We're starting to gain an enormous amount of traction and interest in that business as well. We are becoming the dominant player in the $100 billion 3D modeling market. That's ARitize3D. We create 3D models using AI at mass scale for e-commerce websites. The easiest way to kind of show you how it works is to play the video.
Here we go.
Customers want 3D and AR models while they shop. Is your e-commerce store ready for that? Google ranks 3D models higher in organic search than typical 2D ones. Allow us to introduce you to ARitize3D for e-commerce. ARitize3D is a quick and easy one-stop shop for all your e-commerce and 3D AR needs. Adding augmented reality to your site isn't as time-consuming or expensive as you may think.
We turn products into exciting 3D AR models without any 3D experience or fancy equipment with our end-to-end solution. The only requirement, your regular 2D photos that are already on your site. Our artificial intelligence technology makes it that simple. We create models in-house for you and host them in our cloud, so your site runs at top speed.
After your approval, models integrate with your e-commerce store, you're ready to wow your customers. This means 3D lift conversion rates by 250%, click-through rates jump by 94%. ARitize3D for e-commerce. Start making 3D magic today.
There you have it. The ROI is the thing that's driving the adoption. 94% higher click-through rates using 3D models, 40% decrease in returns, and a 250% higher conversion rate. Those are stats that Shopify puts out, that's benefiting, obviously, our business enormously.
As you can see, Amazon, NAPA, Kohl's, Target, Procter & Gamble, blue-chip customers are the key customers that we service, they have a very high bar that we are able to meet, which gives us a competitive edge. If you wanna see a 3D model, you could just scan the QR code with your phone camera, that's all you need to do to kind of put it in the room with you.
If you look at Toggle3D, this is another one of our business units. As mentioned twice already, we are going to be spinning this out as its own public company. Let's go to the video to see how Toggle works. Super simple. You load your CAD file, you point and click on the texture or the color, and then you publish to the web.
It really doesn't get any easier than that. If you look at the legacy software platforms that are out there, by giant tech companies like Adobe, again, they require six months or more to even be a beginner on their platform. With Toggle, there's no learning curve. It's web-based, fully collaborative platform. We see this as disruptive technology.
It's gonna be our second IPO spin-out happening either late May or early June. Super excited about Toggle3D and ARway. Sorry about that. ARway is the company that we have previously spun out. What ARway does is it helps our Event Solutions business because ARway is able to map a live event show floor and create augmented reality wayfinding experience.
We've combined our technology and really transformed the event industry by leveraging augmented reality and XR experiences. We've done that, really, it gives us a competitive advantage with this end-to-end solution, and we expect it to drive significant revenue, really transforming the $50 billion global events industry.
Let's just take a look at the video to see how ARway, our augmented reality trade show solution, is transforming that industry. There you have it, trade show augmented reality wayfinding. If we look at ARway, it has lots and lots of use cases. It's not just for events. It's for sports stadiums. It's for museums. It's for airports. It really has an unlimited use cases.
It, you know, you could think about universities, hospitals, even shopping malls. ARway's competitive advantage is that it's a first-mover platform that is augmented reality capable, no code, no beacon, so it's hardware free. There's over two billion installed users. Everybody essentially with a smartphone can use the platform.
Again, it was a spin-out, and it's listed in the U.S. under ARWYF, as in Frank, and in Canada under ARWY. We own 50% of the spin-out ARway. Enterprise clients are starting to line up. TUI Group, also the largest car rental company in South America called Localiza, a mall in Dubai, the Saudi German Health, Restaurants Canada, and many others.
We have over 25 pilots that are currently underway around the globe. There's an enormous amount of momentum building considering we just launched this really in January of 2023. There's a lot of demand for this technology, and we're using it ourselves with our event tech platform.
If you look at 2022, which is a bit in the rearview, but it's important to highlight, our annual 3D modeling revenue was up 266%, and our Q4 SaaS business revenue was up 21% over Q3 2022. Technology services gross profit margin improved by 53%, hitting 43% versus 28%.
Total revenue in 2022 clocked in at around $10.3 million, with technology services generating around $3.1 million. If you look at the price targets that are out there, H.C. Wainwright came out in February with a price target of $2.50, that's the high, and Zacks has the low price target of $1.33. The stock's currently trading around $0.50, so plenty of upside in the stock.
If you look at the technologies, you know, back to the mega trend where we started this presentation, you can clearly see that we are just at the beginning of the AI mega trend. It is going to be 10x, on people's investment as, you know, the next decade unfolds, if you pick the right companies. 3D imaging market, again, that's going to go up by multiples.
Machine learning at least 10x, and augmented reality actually, is looking to grow by 14x over the next decade. These are the mega trends that we spoke about. This is the business that we're doing the pioneering work in, and these are the companies that you can invest in, with Nextech being the parent to take advantage of these mega trends.
If you look at our team, we have a super talented team of leaders here. My CFO is from Ernst & Young. My CTO is from Apple Computer. Again, just to summarize, perfectly positioned, enormous scalable revenue potential. Mass adoption of our tech is being led by big tech and is really driving the growth in these markets. ARitize3D addressing a $100 billion 3D modeling market.
ARway addressing the $44 billion global indoor positioning market. Toggle3D addresses the $11 billion global CAD market. Nextech Event Solutions is targeting the $50 billion global events market. The transformational technology shift in all these industries is happening right now. Thank you. All right. Lots of questions. I'm gonna try and get through all of them.
Ken is asking, you know, "How much, if anything, do you charge for a pilot? Is it enough to cover the cost?" I'm assuming he's talking about ARway. The pilot costs range depending upon how significant they are, but on average, they're around $10,000. They do cover the cost for sure. Thomas is asking about Amazon and Seller Central. We are waiting for that to happen.
The delay is an Amazon side delay. We are locked and loaded, and we are poking them, you know, on a regular basis, and they're just, you know, a giant company that is taking a little extra time, but it is happening, no question. The new hires announced today, from Thomas, he's asking, you know, "How did we come across these three new employees?" I mean, we have a recruiter.
We recruit top talent and, you know, they go through testing with our CTO just like you would if you were being hired by Google or Apple or anybody else. That's how that works. Ashad is asking about what the roadmap is for ARitize3D. Do we see this as licensing software? Essentially, ARitize3D is really leveraging AI to create 3D models at scale.
That is the primary focus of that business unit. Ashad's also asking about blockchain. It is something that we always look at. At one point, we owned Bitcoin, it's not something that we need today. If it became something, we would definitely take advantage of that.
Philip is asking, "How many 3D models are we able to convert per month at the current moment?" Right now, we could probably do somewhere in the range of 6,000 to 8,000, but that number keeps on growing, meaning, you know, it could be 10,000 in another month.
As the AI really starts to get stronger, we should be able to hit 20,000, 30,000, 50,000, 100,000. I mean, the sky's the limit, and that's really the story here, Philip. Is that it's not so much about today. Today, you know, you just have to go back to 2019 when we were doing one model every two weeks and, you know, now we're doing hundreds of models a day.
It's a significant improvement, and it's only getting more and more exciting for me to see the AI on a daily basis get better and better. Skip's asking, "What's the catalyst for re-rating?" I guess he means for the stock to go up. I think, Skip, we all wanna see the stock go up. I think it's really just a question of the Amazon opening up their Seller Central.
I think that is a huge catalyst. I think also as we start to release our numbers, people are gonna start to take notice because they will see that everything that I've been talking about is actually now happening and hitting our bottom line. Philip also is asking, "Is TUI becoming a customer for ARWay?
I was at the Palma de Mallorca Airport and wished for a QR code like that. In the video. It is in motion. These things do take time, but it is in motion. Philip's also asking, "Is the military trying out ARway?" Philip, do you have a spy here? Yes, the military actually is trying out ARway. Yes, that is affirmative. Thomas is asking, "Evan, ARway recently partnered with The TRIBE digital marketing company.
Where's The TRIBE located? How did ARway develop the relationship with The TRIBE?" Honestly, I don't know every single customer. I mean, we have sales guys and so, I'll have to get back to you on that, Thomas. The bottom line is that we're constantly fielding calls and prospects. The TRIBE is just one of many.
We have a ton of deals that we're signing up for ARway. Mark Wynn, "One of the TAMs listed for each business, what percentage of those addressable market does the company have?" We have a fraction of 1%. I mean, it's just starting, Mark. I mean, that's the whole opportunity. That's why the stock's, you know, CAD 0.50 or whatever, CAD 0.60 Canadian, because we're just getting started.
Joe Smith, "Is ARitize3D its own public company, or is it still under the Nextech3D.AI?" ARitize3D is a division inside of Nextech. If you buy Nextech, you're buying ARitize3D. "When should Nextech become profitable?" Damian, we are aggressively pursuing cashflow, going cashflow positive in 2023.
We think it can become a reality. It's primarily because of the breakthrough generative AI that we've been talking about. If we haven't announced, like a customer win, you could assume that, we don't have it yet. You know, that's the answer, Ronnie. Carolyn, "Who are your competitors? What differentiates you from others?" There's no public company that I'm aware of that competes with us.
There are some private companies. There's a company called Avataar. They just raised $45 million for, a try-on technology. It's really in-store try-on. What differentiates us is that we're public and our competitors are kind of private, smaller shops. I think we are the biggest player in this space and we intend to actually get much, much bigger and essentially be the dominant player.
Philip's asking, "In which months are all 20 pilots running out?" Philip, we just started in 2023, you know, these things are gonna roll throughout the year. I just got off a sales call, you know, with my ARway team. There's lots and lots of name brand, big boys. I'm talking, you know, Fortune 100, S&P 500 companies that are circling ARway and looking to sign up and do some pilot programs with us.
In terms of generating income, we're generating income now on ARway. We're signing up customers now, these are just for the pilots. The big money is gonna show up likely in the second half of the year as these pilots turn into longer term, mega projects.
Why did Google sleep on indoor wayfinding?" It's not that they slept on it, Philip. It's that it's difficult to do. As crazy as that sounds, I think we're doing stuff here at Nextech3D.AI with ARway that others simply have not been able to figure out. That's, you know, not so unusual. The bigger companies wait until somebody figures it out and then they acquire them.
Thomas is asking, "Should we expect to get the Q1 2023 financials in mid-May?" The answer is yes. Only a few more minutes. Philip. You're welcome, Philip. You know, I see the stock is hugely undervalued here. I feel like we're going to turn the corner on cashflow, going cashflow positive and never look back. With that, thank you guys very much.