Nextech AR Solutions Corp. a Metaverse Company and leading provider of augmented reality (“AR”) experience technologies and services is transforming its operations with a renewed laser-focus on its Web 3.0 SaaS business providing leading edge 3D/Augmented Reality solutions.
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As the $5.5 trillion global e-commerce market (source: Statista 2022) is transitioning to Web 3.0 technologies such as 3D models/AR, bridging the gap between the physical world, and what was once a flat 2D online e-commerce experience. Nextech’s Web 3.0 solutions, help increase sales, decrease product returns, and improve advertising results, leading to potentially billions of dollars in value, and bottom line impact for its global brand clients which include Kohl’s, CB2, Crate and Barrel, NAPA Auto Parts and many others.
The transformation will result in the following:
- Transition to pure-play Web 3.0 services business, and winding down of its legacy Ecommerce business, Vacuumcleanermarket.com, Trulyfesupplements.com and infinitepetlife.com, effective immediately.
- This wind down of legacy ecommerce assets is anticipated to save the Company $8-$10MM in annual expenses based on 2021 annual figures.
- The company expects that it will generate an additional $1MM – $2MM in cash from the sale of the inventory in the Ecommerce business which will bolster Nextech’s cash position.
- The Company will be solely focusing on generating revenue from its technology services and renewable software licenses business going forward.
- The company is exploring additional ways to enhance shareholder value through spin-outs as previously announced of ARitize Maps and other activities.
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Nextech AR CEO Evan Gappelberg commented, “We are extremely excited about the growth prospects of our 3D modeling and AR business in 2022 and beyond and see this transformation as the next logical step in our stated goal to be the 3D model factory for the metaverse. Nextech continues to gain traction in the 3D technology space by signing new deals and building its MRR and ARR. With this winding down of our Ecommerce business we can now focus solely on our fastest growing business which is our 3D technology products becoming a pure play technology company. He continues “Our renewable software licences is the fastest growing segment with over 300% growth year-over-year which we expect to continue. We anticipate continued demand and growth in our 3D and AR technology for the foreseeable future.”
From 2019-2022 the company was able to use its Ecommerce businesses as a sandbox for learning about the 3D modeling and Augmented Reality business; today however its 3D modeling business and AR business has matured so that it no longer is needed for this. In addition, severe supply chain issues are preventing the business from restocking its top selling products, which is hindering ecommerce business growth as seen in the reduction in sales in the last few quarters. In light of the growing 3D modeling business and the difficult climate for gaining inventory due to supply chain issues, the company is reorganizing and becoming a pure play technology company.
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