Nextech3D.ai (NTAR.C) is a diversified augmented reality, AI technology company that leverages proprietary artificial intelligence (AI) to create 3D experiences for the metaverse. Its main businesses are creating 3D WebAR photorealistic models for the Prime Ecommerce Marketplace as well as many other online retailers. Nextech is a generative AI-powered 3D model supplier for Amazon, Kohls, P&G and other major e-commerce retailers. The Company develops or acquires disruptive technologies and once commercialized, spins them out as stand-alone public Companies issuing a stock dividend to shareholders while retaining a significant ownership stake in the public spin-out.

Today, the Company announced record preliminary Q2 revenue of $1.4 million. Nextech3D.ai believes it is on the path of achieving breakout Q3 revenue of $1.7-$1..9 million given the surge in demand for 3D models.

Here is what CEO Evan Gappelberg had to say:

“Our preliminary results for Q2 were impressive, as we achieved record sales of $1.4 million. However, what excites me even more is the exciting growth we are witnessing in our Q3 and Q4 orders. Based on the current order flow from Amazon, we are projecting a breakout Q3 quarter with revenue of at least $1.7 million, and we also anticipate an expansion in profit margins.”

“We believe there is potential for the revenue to exceed $1.7 million as that is our conservative estimate for Q3. This quarter is expected to be the long-awaited turning point for our company. This belief is reinforced by the recent announcement of a significant expansion contract worth $2.2 million from Nextech3D.ai’s largest customer, Amazon. This contract highlights the success of Nextech3D.ai’s groundbreaking generative-AI technology, positioning the company as the leading AI solution globally for scaling 3D model production in the thriving e-commerce, gaming, and manufacturing industries. Furthermore, thanks to our latest funding round, our cash position is now robust enough to accommodate the increased demand we anticipate in the second half of 2023 and beyond.”

These preliminary estimates come after the Company announced a $2.2 million expansion contract from their largest customer, online retail behemoth Amazon. This contract will expand the Company’s profit margin significantly and will play a role in achieving positive cash flow.

The stock is currently up over 3.8% at time of writing on this news. Nextech sits at a market cap of around $43.9 million.

Nextech stock rejected a major resistance zone at $0.81 and then broke below a trendline triggering a downside move. The stock actually retested this trendline on July 14th 2023 which saw a huge influx of sellers. The stock then broke below the $0.50 zone and gapped down.

In my most recent technical article on the chart, I told readers to watch for buyers at the test of support at $0.36. Buyers seem to be holding the price above this zone preventing further breakdown. The stock is now in a small range just above support. Going forward, a break above $0.44, the near term resistance, will be a bullish indicator for the stock. However, there is a gap that Nextech has to deal with. Gaps tend to be resistance when price gaps down. For the bulls to take control, they would need to push the price higher for a close above $0.50. This would be called “closing the gap” which tends to be followed by very bullish momentum.

Positive fundamental news has come out which could be the catalyst for a reversal here at support.