Nextech3D.AI has $6M adj. operating loss in 15 months

Mr. Evan Gappelberg reports NEXTECH3D.AI REPORTS AUDITED FINANCIAL RESULTS; 55% GROSS PROFIT GROWTH AND 58% REDUCTION IN OPERATING CASH BURN Nextech3D.AI Corp. has released its audited financial results for the 15-month period ended March 31, 2025. The results reflect a significant improvement in gross margins, cost structure, and operational focus, as the company continues to transition toward scalable, productized revenue streams across its core AI-powered platforms. Financial highlights (15-month period ended March 31, 2025, versus 12-month period ended Dec. 31, 2023): Gross profit increased 55 per cent to $2.24-million, compared with $1.45-million in the prior period; Gross margin expanded substantially to 64 per cent, up from 29 per cent; Operating cash burn decreased by 58 per cent to $5.56-million, compared with $13.34-million previously; Adjusted operating loss (excluding non-cash items) improved by 56 per cent to $6.07-million, down from $13.94-million; Sales and marketing expenses were reduced by 55 per cent, from $4.55-million to $2.03-million; General and administrative cash expenses decreased 41 per cent, from $7.59-million to $4.50-million; R&D (research and development) spending was streamlined, declining 45 per cent to $1.78-million; Revenue totalled $3.49-million, down 31 per cent from $5.03-million, primarily due to a temporary slowdown in the company's 3-D model business as operations were restructured with focus on higher-margin offerings. Operational highlights: Gross margin more than doubled, highlighting improved unit economics and the shift toward scalable SaaS (software-as-a-service) and bundled solutions; Cost structure aligned to support recurring revenue growth with reduced dependence on variable production models; Deferred revenue increased by 46 per cent to $498,171, reflecting strong customer prepayments and healthy forward bookings. CEO (chief executive officer) commentary: "We are executing on a focused strategy of margin expansion, disciplined cost management and recurring revenue growth," said Evan Gappelberg, chief executive officer of Nextech3D.AI. "The 55-per-cent increase in gross profit alongside a 58-per-cent reduction in cash burn is a clear validation of our operating model. With a leaner structure, higher-margin business lines and growing customer demand, we are entering a new chapter of scale and efficiency." Future outlook Nextech3D.AI remains committed to its vision of delivering scalable AI-powered 3-D solutions for e-commerce, retail, manufacturing and events. With improved operational leverage and a productized platform architecture, the company is positioned to drive margin-accretive growth, capture recurring revenue opportunities and create long-term value for shareholders in fiscal 2025 and beyond. AI-driven 3-D margin expansion Proprietary AI tech has reduced 3-D model production costs yielding gross margins of 50 per cent to 86 per cent; Additional automation under way, unlocking even greater scale and profit potential. Map D event tech platform scaling 500-plus active customers on the platform with industry-leading 95-per-cent gross margins; Revenue from Map D is projected to scale in the next 12 months; Continuing rollout of premium features: attendee matchmaking, ticketing, mobile navigation and in-app lead retrieval. About Nextech3D.AI Corp. Nextech3D.AI is a leading AI-powered 3-D modelling and spatial computing company transforming e-commerce, enterprise and digital engagement. Through its suite of 3-D solutions, Nextech3D.AI enables scalable model production, immersive product visualization and innovative spatial experiences across industries. The company leverages proprietary AI to scale production of 3-D assets for some of the world's largest retailers including Amazon, and digital e-commerce platforms Shopify, Bigcommerce and Woocommerce. We seek Safe Harbor.