3D modelling revenue increased +266% vs 2021

2022 technology service gross profit margin expands by 82% jumping from 51% in 2022 compared to 28% in 2021

TORONTO, ON / ACCESSWIRE / April 20, 2023 / Nextech3D.ai (formally "Nextech AR Solutions Corp" or the "Company") (OTCQX:NEXCF)(CSE:NTAR)(FSE:EP2), a generative AI-powered 3D model supplier for Amazon, P&G, Kohl's, and other major e-commerce retailers reports its unaudited financial and operating results for its fourth quarter and fiscal year ended December 31, 2022.

Please join Evan Gappelberg, Chief Executive Officer and Andrew Chan, Chief Financial Officer today after the close today April 20, 2023 at 5:00 P.M where Nextech will host a conference call to discuss these financial results.

Evan Gappelberg - CEO Commentary:

"In 2022, our company placed significant emphasis on addressing the growing global demand for our 3D modelling and AR solutions designed for the ecommerce sector in web3.0. As we progress into 2023, we are seeing continued evidence of this trend, with our business remaining strong and experiencing growth. As previously announced in Q3 of 2022, Amazon became our customer, making them our largest enterprise customer for 3D model delivery in ecommerce. As Amazon is widely regarded as a leader in ecommerce, their decision to transition from 2D to 3D models serves as a strong indicator of the direction the industry is heading towards. We believe this highlights the staying power of 3D models, which will continue to drive the multi-decade, $5 trillion dollar ecommerce megatrend moving forward." He continued, "In the coming decade, 3D models will be a prerequisite for competing in various industries such as ecommerce, medicine, education, and events. At Nextech, we specialize in creating superior, cost-effective, and timely 3D models. We make them better, faster and cheaper than any other company I know of, and this positions us to be the leaders of this rapidly growing, trillion-dollar megatrend. While it was quite a challenge to get here, we are here now, and we are confident that we are optimally positioned to benefit from the rapid growth in demand for 3D models. From our vantage point we see nothing but blue sky opportunities."

Unaudited 2022 Q4 and 2022 Fiscal Year Financial Highlights

• Total fiscal revenue of $11.5 million (including legacy ecommerce business)
• Technology services revenue of $3.2 million
• Legacy ecommerce business revenue of $8.3 million
• 3D modelling revenue increased +266% compared to 2021 contributing $1.5 million in 2022
• 2022 technology service gross profit margin expands by 82% jumping from 51% in 2022 compared to 28% in 2021 on $3.2 million revenue
• Technology business contributed $1 million in Q4 revenue up 14% sequentially compared to Q3

NEXTECH AR SOLUTIONS CORP.
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Expressed in Canadian dollars)

NEXTECH AR SOLUTIONS CORP.
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Expressed in Canadian dollars)