NexTech AR Solutions Corp. (OTCQB: NEXCF) First Quarter 2022 Earnings Conference Call May 16, 2022 5:00 p. m. Eastern Time
Participating companies
Julia Viola – IR
Evan Gappelberg-CEO
Andrew Chan – Chief Financial Officer
Conference Call Participants
Scott Buck – H. C. Wainwright
Lisa Thompson – Zacks Investment Research
Peter Levine – Ameriprise Financial
Operator
Good evening, girls and gentlemen. Welcome everyone to the call of the first quarter 2022 earnings convention from NexTech AR Solutions Corp. that this call is being recorded, today Tuesday, March 22, 2022.
I will now turn the call on to Ms. Julia Viola of NexTech AR Solutions Corp. Go ahead, ma’am.
julia viola
Hello and welcome to the NexTech 2022 first quarter earnings call. I am accompanied by Evan Gappelberg, Managing Director; and Andrew Chan, Chief Financial Officer.
Today, before the markets close, NexTech AR Solutions Corp. reported its monetary effects for the first quarter ended March 31, 2022. A copy of the effects disclosure can be obtained from our online page and from SEDAR. Some of the data discussed in this call is based on data as of May 16, 2022 and comprises forward-looking statements that involve dangers and uncertainties. The actual effects may differ materially from those presented in those statements. For a discussion of those dangers and uncertainties, please refer to the disclosure of forward-looking statements in the earnings press release and in our documents filed with SEDAR.
During this call, we will talk about the effects of IFRS and key functionality signals. A detailed description of our key functionality signals can be obtained in our MD
To begin our call, Evan Gappelberg, Chief Executive Officer, will discuss the highlights of the first quarter of 2022, as well as any recent business developments, followed by Andrew Chan, Chief Financial Officer, who will review our monetary effects and outlook. Finally, Evan make closing comments before opening the lines for a consultation and response period.
I will now speak with the CEO and founder of NexTech AR Solutions, Evan Gappelberg.
Evan Gappelberg
Thank you Julia. Hello everyone. And thank you for joining us. As usual, I would like to thank all of our NexTech workers located around the world for their determination and hard work. NexTech’s good fortune so far and in the long term is only made imaginable through its ongoing commitment and pursuit of excellence.
In 2021 and the first quarter of 2022, we are focused on accelerating the worldwide adoption and demand for our augmented truth answers and 3D models for the metaverse. It is our main driving force for growth. This is the core business as we move into 2022 and beyond. This has been reinforced time and time again, thanks to the multitude of new offers we announced in the first quarter of 2022. Our AR for eCommerce is a winner. We point out deliveries of 3D models in various industries and product categories, the most important being furniture, sports equipment, works of art, appliances, lighting, auto parts, etc.
Basically, the entire ecommerce ecosystem subscribes to 3-D styles. These agreements we signed, the speed at which we signed agreements had never been known before through NexTech. And we think this is representative of a developing global call for 3-d and, in the end, augmented reality. We are confident that this will increase around 2022 and beyond. And as discussed in our last call for results, our company’s project is to build the first 3D style factory for the metaverse. Throughout 2022 and beyond, we will try to achieve this ambitious but achievable goal.
As our business becomes a SaaS company and a 3D modeling factory for the metaverse, the demand for 3D models is driving our business. We are experiencing massive demand in the market. And this is demonstrated not only through NexTech, but also through other investments that occur in the ecosystem. We’re not the only ones who believe that 3D models and the metaverse are the long-term of technology. Last year, in the fourth quarter, was a tidal wave of venture capital investments in the VR and AR space.
Nearly $1900 million in venture capital invested in startups in the virtual and augmented real software and hardware box, more than in any previous quarter. And last year, about $4 billion invested in the venture capital space. is the point. In the long run, and that’s what they’re investing in, they’re making a long-term investment. They’re not making an investment in yesterday’s technologies, they’re making an investment in tomorrow. run is the metaverse and we are a metaverse enterprise.
Seven of last year’s 10 most sensible laps [ph] took position in the fourth quarter. The basic technological trend is there for virtual worlds. If you take a look at the billion-dollar loads of investors’ capital, they’re positioning themselves now by either investing in big tech or taking small startups, Snap bought Vertebrae, Epic Games bought Sketchfab, Getty Images and TurboSquid, Niantic on the eighth wall, Qualcomm bought Wikitude. These are all smaller players, similar in length and scale to NexTech, who are selected, one by one.
The access ramp to metaverse 3. 0 is composed of three-dimensional models. And I are in the midst of the Fourth Industrial Revolution, which is now known as the metaverse. The metaverse is conducted via AR, VR, AI, NFT, 3-d models, e-commerce and, of course, the 5G network. And all this converges and adapts more and more to e-commerce, advertising and entertainment.
We see this game in the real world every day. The convergence we are seeing is driving an immediate adoption environment in the market, similar to the immediate adoption of the Internet in the market in the 1990s. This resulted in the creation of trillion-dollar industries almost overnight. The metaverse market is what NexTech has been doing, what I’ve been waiting for 4 years to see the light of day. And it is a place in the market where we are preferably located to capitalize. underway, but it’s still very early, which is an opportunity. It’s too early. And this is the opportunity. It is not as early as in 2018 when there is no ongoing adoption. This adoption is ongoing. We are in the first round.
I trust that three-dimensional models are the gateway to the metaverse. We are now entering a new phase of primary expansion opportunity. At NexTech, we gain advantages from the paradigm shift in the way other people shop, work, travel, meet, learn and play. This paradigm shift is moving towards our company. It moves towards the products we sell, the products for which we are located. Again, this is just the first circular of a megatrend. an opportunity in my life. And my feeling is that over time the masses aware of this idea, it will be too late.
We are taking advantage of this $1 trillion opportunity by being the provider of three-dimensional models for the metaverse, necessarily the gateway product. We’re not competing with Facebook, we’re not competing with Microsoft. We’re not competing with Google, we’re not competing with Amazon. We allow them to be even more successful, and they love us for that. E-commerce is a huge industry. Globally, it’s a $5 trillion industry. And again, we are the factory of 3-d models 3. 0. Si take a look at the 3-d models, they are now ranked above the 2D photographs in Google search, which creates even more demand for and even puts more wind on our backs.
Shopify has discussed several times and publicly stated that long-term ecommerce is 3D. Don’t get me wrong, we will take full credit for this opportunity from this paradigm shift. And we’re incredibly confident in how our business aligns. and the immediate expansion we are experiencing today.
Changing gears, in one of our holding companies, we have a portfolio of companies. If you take a look at our hybrid event platform, we own a company called Map Dynamics. And in 2022, we see a healthy build in our live events business. Map Dynamics earnings increased 47% from the fourth quarter, and the average Map Dynamics order increased more than 20% through the fourth quarter of last year. In December, we announced the signing of a multi-year hybrid event. , a market contract worth more than $600,000. We are proud to say that last week we executed the first component of this contract as an event platform for Restaurants Canada 2022 and the launch of 365 Metaverse Marketplace.
So we’re taking advantage of this opportunity with this event platform and we’re turning it into a metaverse marketplace, which is quite vital because, and we’re doing the pioneering work. RC Show the Restaurant Canada is, I think, the biggest food service. and hospitality show. I think it’s the biggest: one of the biggest occasions of the year taking a stand in Canada and our generation fully exposed. We had a vital booth at the show, it’s true, when you walked in. I think we were the first stand you saw. We had our Map Dynamics event platform in full screen.
Workshop experiences, adding augmented truth navigation, which is AR orientation. We had human holograms, we had three-dimensional models, all of that was on public display at Canada’s largest industry demonstration for restaurants and hotels. It was a wonderful feature for NexTech. Et it was a great fortune because we were able to demonstrate in the real world how our generation worked, and we ended up generating a really broad interest from the new consumers of our generation.
Therefore, the launch of Marketplace 365 opens up a vital new opportunity for NexTech to make the same style of business bigger in other industries beyond hospitality. And in RC once again, we gain a lot of interest from other associations for our metaverse market. we’re excited to see how it plays out in 2022 and beyond.
When we take a look at our revenue in 3D and AR, again, everything accelerates quickly. The demand for 3D and AR models for e-commerce has increased. And that’s because of the positive return on investment. In 2022, we see new accounts being registered for ARitize 3-d and ARitize CAD in many other industries. And we don’t see that diminishing anytime soon. In fact, we are seeing replenishments. We are witnessing the signing of new agreements through small and medium-sized enterprises, as well as giants. We have signed dozens of orders for checks from POC. Il necessarily from e-commerce corporations that have massive expansion potential.
So we’re in this control phase in the first round. All the orders, all the businesses that we have finalized lately are the smallest orders. This is just control. And so, our consumers have indicated that since the verification is going well, and it already happened, some of them have already taken over and ordered significant amounts of additional models. As they accentuate and reorganize, this represents thousands of additional SKUs and significant prospects. for long-term monthly recurring benefit and annual recurring benefit.
We are seeing an increase in the number of new customers, which translates into a continued expansion of our annual recurring revenue in 2022. This is a massive validation of our efforts. This company did not exist in 2021. At the same time, we are now what we believe is revolutionizing the emerging market of multi-billion dollar three-dimensional styles because we have the quality, we have the lowest cost, and we have the maximum. three-dimensional style solution scalable in the world.
All the symptoms point to 2022 being a year of rupture for anything resembling 3-d. As stated above, 3-d models for e-commerce, 3-d models constitute recurring annual revenue. And this will be the domain of our business. we can evolve quite quickly, and we deserve to be what our investors want to keep an eye on to measure the fitness of the company and our potential for expansion.
I would strongly recommend that our investors divert their attention from earnings growth, as this is necessarily our legacy e-commerce business and what happens within the company, which is our 3-D style business that is starting to evolve. . In the first quarter of 2022, we saw really extensive development in visitor adoption, either by signing 12-month contracts or by repeating annual contracts totaling over $1. 3 million, which is starting from scratch and we’re just getting started. So Q2 is even better.
In the first six weeks of the current quarter, we exceeded all contracts signed in the first quarter for 3D models, indicating that the acceleration we continue to talk about is occurring. If you take a look at our solutions, we have a start to finish. As we have already demonstrated, for investors, we introduced a lot of generation in the first quarter and in the current quarter.
Just a summary of some of our announced releases. ARitize 3-d, which is our Internet AR platform and 3-d style for e-commerce, introduced AR’s Maps, which is the spatial mapping metaverse platform, introduced ARitize Holograms, the human hologram Authoring app introduced the ARitize 3-d-Shopify integration, introduced ARitize Swirl, ARitize Social Swirl, presented. . . I mean, all these problems for a very healthy corporate generation that you’re investing in, that we continue to achieve our goals.
In 2022, we announced the launch of the ARitize Metaverse suite, the launch of ARitize 3-d for giant commerce; very soon we will announce that we have incorporated WooCommerce, which is a vital platform similar to Shopify. This will take place at the fourth moment. We will also integrate Magento, some other vital platform. We will also announce the Android edition of our human hologram creation app ARitize Holograms and we will also announce later this year, our CAD to Poly SaaS business will be launched.
The integration of SaaS with our product line has vital implications for the scalability of our products and the growth of NexTech’s earnings. With our continued rollout of our SaaS platforms, NexTech continues to move away from controlled responses. We have almost completely moved away from controlled responses. now they are focusing on annual recurring earnings and recurring earnings per month, which is not very exciting. We are just beginning to see emerging gains in corporations as we ramp up 3D modeling, augmented reality, and Metaverse responses with our new SaaS products that I just announced launched.
The huge opportunity to create 3D models for e-commerce is estimated at more than $200 billion. We have just surpassed the million-dollar level. So we didn’t even scratch the surface. This is the tip of the iceberg. And it’s only a matter of time, in my opinion, before our competition loses its ability to compete, and NexTech becomes the £800 gorilla in this space.
If you take a look at the number of models we’ve served, lately we have a total of 4. 5 million 3D AR models served. This means that there are 4. 5 million 3D and AR reports that buyers, consumers have experienced on our platform. , 870,000 3D models served in the quarter alone. That says a lot. That says a lot. If you divide 870,000 by 90 days, to do the math right now, it’s almost 10,000 perspectives per day, which is amazing, incredible. Last year’s average was much lower. Our accumulation in the average number of downloads is developing very, very fast, and will continue to grow.
So, in conclusion, 2021 has been a transformational year for NexTech and 2022 promises to be a watershed year, a year of really extensive expansion for our main expansion driver, namely 3D models and augmented truth. Again, it is critical that investors in the main event, which is not our legacy e-commerce business, which is shrinking and depends only on our fast-growing three-dimensional model, the metaverse business. provider of augmented truth answers and three-dimensional models for the metaverse.
We are uniquely located as one of the only end-to-end metaverse responses that provides three-dimensional spatial maps and augmented truth models for the metaverse, creating unique immersive reports that other people are willing to pay us for. Potentially, we believe the overall addressable market is $0. 25 trillion. we will drive with the adoption and adherence of our full suite of augmented truth products and services.
I hope that 2022 will be a year of hyperexpansion in each and every one similar to augmented reality, 3D and metaverse. I’ve said it over and over again, that this will be a mega trend of decades and trillions of dollars. I started saying this in 2018. C now it’s truly repeated through many street analysts. I’m very excited about what the long term holds. I feel like the company is making its dream come true. And that’s just the beginning, just the beginning. The tip of the iceberg. I have confidence in the management of our corporate, I in our control team and in each and every one of the workers who work to build the vision of the metaverse.
Before I pass the floor to Andrew Chan, our CHIEF Financial Officer, I will upload a few words. We withdrew from NEO last week. We have announced the removal of the directory or voluntary cancellation. Me to cancel the subscription. No one asked us to remove ourselves from the list. I just took the resolution to unsubscribe. The non-unusual stocks were removed from the list on Thursday, May 12. Canada because we were doubling expenses because we were enrolled in the CSE.
I should also point out that stocks have had two days of positive trading since we deindexed and it’s no coincidence. So Thursday and Friday were positive trading days. In fact, Thursday and Friday and today were positive trading days. , the movements were attacked. But now we are no longer in the NEO and it is much less likely that we will be attacked. I have no evidence to help in that. Time will tell, but I think leaving NEO’s inventory swap has been positive for shareholders, not only for the company in terms of savings, but also for the way inventories are negotiated. The Company’s inventories will remain indexed on the Canadian Securities Exchange and the OTCQB.
Speaking for just a minute about market situations, I need everyone to put things in perspective. Perspective is essential. As we all know, existing market situations are challenging, to say the least for small-cap stocks. 50% of the NASDAQ is down 50%. 50% of the shares are down 50%. 75%, 22% of all corporations listed on the NASDAQ are down 75% and 5% are down 90%, stocks have crushed by 80%, cryptocurrencies have been crushed.
The decline of 2022 is the worst time of decline in history, just after 1932. 1932 90 years ago. I don’t think any of us on this call were alive 90 years ago. So if that’s true, then it’s the worst decline of our lives, indeed my life. But we will survive. And we will prosper. In fact, NexTech is in the right position at the right time with what we sell.
My point is that our percentages are not going down because of solvency issues, they’re going down because the total market is down. And as the largest percentage of NexTech, I can sense all their frustrations. I’m sure he’s frustrated by the drop in the percentage worth like me, and I’ve been affected as well. I would even say more effective than otherwise with those drops of NexTech.
The company and I do our best to bring the price to shareholders. And this will emerge over time as the market recovers and realizes the price of NexTech’s innovative technologies and solutions. It is vital to think long term, 12, 24, 36 months. and that this is the beginning of a long adventure where patients will be rewarded. As discussed above, I work night, day and night to unlock the price of our many assets and businesses that we own as a diversified generation company.
We are about to sign a deal for an imaginable spin-off of our metaverse creation platform ARitize Maps, which was in full screen as previously discussed at The Canada Restaurant last week in Toronto. If this happens, it is a yes, it is not a guarantee, if it happens, it will result in a loose percentage dividend for registered shareholders. This means that if you have all the percentages, you will get more percentages in this spin-out. If you don’t own the percentages, you won ‘t. The purpose here is to increase the percentage shareholder value. We were very close. It is not a guarantee. But stay tuned.
That said, I’m going to call NexTech’s Chief Financial Officer, Andrew Chan, to provide me with more feedback on the quarterly financial statements. Take it with you, Andrew.
Andres Chan
Thank you Evan and good evening everyone. As a reminder, unless otherwise stated, all figures reported in today’s call are in Canadian dollars according to IFRS. All of the above monetary data is now available on our online page and has been archived at Sedar, at the close of trading today. , for your reference.
Total first-quarter profit was $3. 5 million, up from $7. 7 million in the same quarter last year. These gains continued to reflect the shift of our business from virtual events to 3-D and augmented truth and metaverse. Revenue from our product sales for the quarter was $3 million, compared to $6 million compared to the same quarter last year and $4. 2 million in the prior quarter, reflecting the continued effect of COVID-19 on the supply chain and the ability to offload desired inventory. products for sale on our e-commerce platform.
These macroeconomic effects were also felt across all e-commerce platforms this quarter in their respective reported results. We do not expect large volumes of virtual events this quarter as earnings, due to the shift in focus from 3D AR profit-generating products. and generation as Evan spoke and virtual events. During the quarter, we recorded gross earnings of $127,000 similar to generation and virtual events and after supporting credits and payments, net earnings were $37,000. Earnings from renewable licenses rose 25% to $460,000 this quarter compared to the same quarter last year. And we saw a 14% increase in earnings from identified 3D subscriptions and a 47% increase in earnings from our MAP [ph] hybrid event platform compared to the fourth quarter of 2021.
This is the result of identified revenue from our 62% expansion in ARR to $771,000 in the last quarter. Due to the decrease in our revenue, gross margin also decreased to $1. 5 million compared to $3. 3 million for the same was last year, maintaining a gross profit margin of 43%. Product sales gross margin saw an improvement compared to the last quarter of the fourth quarter of 2021, an accumulation of 42%, compared to 36%, as we focused more on beneficial parts that were limited, products available due to COVID-19-like issues we discussed earlier.
The technology’s gross profit margins increased to 49%, up 26% from the first quarter of 2021 and up 17% from the last quarter of the fourth quarter of 2021. Therefore, the concentrate has now shifted to more cost-effective 3D AR products. We expect gross profit margins to increase further as we continue to grow the business in ways similar to those products.
Operating expenses for the first quarter were $7. 5 million, down from $2. 7 million at the same time last year and $1. 1 million in the fourth quarter of 2021. The decrease in operating expenses for the quarter continued to come from sales and marketing and studies and progression expenses.
As in previous quarters, this is a continuation of our efforts to reorient our expansion similar to our AR 3-d business. In recent quarters, we have now restructured its sales force and marketing expenses to make it a more successful style for the outcome: for new AR sales activities, and with the goal of reducing the overall sales charge as a result of earnings in the coming quarters.
The reduction in study and progression costs continues to be the result of the reorientation of our progression concentrate towards AR products, which has led to an overall reduction in the workforce in this area. General and administrative expenses remained constant. However, there was a time-rate of $650,000 and $650,000 in non-cash amortization to members of the express control team. Excluding those expenses, general and administrative expenses would have been reduced by 20% compared to average expenses compared to the previous quarter in this area.
We continue to actively monitor and reduce our expenses as mandatory to align with expected revenue and growth. We posted a net loss of $7. 7 million in the first quarter, compared to a loss of $9. 1 million in the first quarter of last year and a loss of $9. 3 million in the fourth quarter of 2021, a relief of more than $1. 5 million, basically due to the contribution of lower expenses as mentioned above.
As of March 31, 2022, we had a cash balance of $10. 8 million, inventories of $2. 5 million, and positive current capital of $12. 5 million. Based on our existing sales projections and charge reductions, we know this capital is sufficient to fund our business over the next 12 months.
With that, I refer the back to Evan.
Evan Gappelberg
Thank you, André. On behalf of NexTech, I need to thank everyone for taking the time to sign us up for this call. Thank you to our employees, shareholders and partners. We thank you all. We are now in position for the Q&A portion of this call.
Q&A session
Operator
Thank you all. [Operator Instructions] First we’ll hear Scott Buck with H. C. Wow.
scott dollar
Hello, afternoons, guys. Thank you for answering my questions.
Evan Gappelberg
Hi, Scott, how are you?
scott dollar
Good, good. So, Evan, I think the first consultation is obviously a big sequential step here at ARR. What about new consumers instead of expanding with existing consumers?
Evan Gappelberg
Well, most of our expansion comes from new customers, but we receive repeat orders from some of our largest accounts. Kohl’s just doubled and gave us a six-figure contract for 12 months. But much of Scott’s expansion is based on winning new customers. And we see that continuing into 2022.
scott dollar
It’s useful. Evan, do you know or have you done the job, if you weren’t going to upload some other consumer this year, what is the prospective opportunity only in the existing visitor footprint?I mean, where are you from today?
Evan Gappelberg
Ouais. Il is. It’s funny, you asked this question. We did a one-hour consultation this morning to precisely develop what the prospect of expanding our existing turnover is. It is substantial. I don’t have a precise number. But yes, they are multiples of the existing company. Because, as discussed many times, those are verification commands. These are the smallest orders we get in Q4, Q1 2022.
scott dollar
Yes, no, it’s useful. And then I just need to check, like fee reductions, where are you in this process?I mean, is it there at this point, in terms of where you need to be in an OpEx, given that OpEx in 24 is still [multiple speakers] to pass through.
Evan Gappelberg
Probably not. We see this as an ongoing balancing act to offset our intake and increase our income. I expect additional savings of $1 million to $2 million in the next quarter as we continue to decline, decrease, and increase our revenue.
scott dollar
Well, that’s helpful. That’s all I have. And I appreciate your time, guys. Thanks a lot.
Evan Gappelberg
Thank you, Scott.
Operator
Next, today we’re going to hear from Lisa Thompson of Zacks Investment Research.
Evan Gappelberg
Say hello Lisa
Lisa Thompson
I was wondering, since profits are probably not the way to look at it. Or what do we focus on to perceive how progress is going?And where are you to achieve your goals?
Evan Gappelberg
Yes, then I would say that the source of profit is one thing. It’s just not the legacy profit from ecommerce that I would focus on. So, profits are declining, however, if you look internally at the company, you will see that our annual recurring profit, the profit from the 3D modeling business, is developing pretty fast. We report sequential gain growth of 62%.
Lisa Thompson
Well, is there any measure that can be given about the number of models manufactured or the number of consumers or whatever we can see?
Evan Gappelberg
Yes, I would say we plan to move forward with that. I don’t know if – we didn’t put it forward in Q – I guess. We haven’t presented it yet. But that’s all we’re going to propose. I don’t know if Andrew has an opinion on that. But we plan to advance in the number of models, the number of customers. We just don’t need to confuse the market, because it’s so early that those, if you look, for example, at the average price of our orders increasing a hundred percent from quarter to quarter, I never imagined this could have happened. But it happened.
So if I had to look at, say, our average order value, the last, not this quarter, but the last quarter, and I had to make a 12-month allocation, it would have been a long way off. in this neighborhood, you don’t say it’s like everything is still fluid enough. We’re looking to get a genuine understanding of what we can assign, what we can assign with confidence, and then we’re definitely going to give your that.
Lisa Thompson
Do you have a concept of the percentage of profits that is a kind of professional style?And how much is the recurring profit per month?
Evan Gappelberg
I think we broke it where he arranged like $770 anything consistent with the model. And then the rest is a component of our other recurring earnings business.
Lisa Thompson
Well, is the activity consistent with the kilometer going to be seasonal?
Evan Gappelberg
Lol
Lisa Thompson
Okay, it’s only going to be built from here, no matter what community it is.
Evan Gappelberg
Yes, it’s just moving on to building, I don’t see it, we see, we’ve noticed a demand in the fourth quarter, we’re seeing continued demand in the first quarter, in the second quarter, we’re seeing an even bigger buildup in I think what’s driving demand is big tech, which forces hands. And put 3D styles at the top of the search, via Shopify, telling your ecommerce sites to move on to getting 3D:3D styles. Styles. And then, of course, the return on investment. Once they get the 3D style on their site, they come back to receive more information.
Lisa Thompson
Okay, yes, thank you.
Andres Chan
Yes, I think of Evan’s previous point, yes, I mean, ARR was relatively early in the seasonality procedure. I mean, for all the industries that Evan talked about before, those are the first consumers in industries looking for 3-d models. So, any kind of seasonality and content, I guess it’s too early at this point.
Lisa Thompson
And are you still limited by having enough other people to create models?Is that where we still are?
Evan Gappelberg
Not at all.
Evan Gappelberg
No, it’s okay.
Lisa Thompson
Great, it’s great. Very well. And just one last thing, just to help us poor analysts, how do we think about e-commerce this year, given the chain of origin and everything in between?Do you have the impression that it will fall by 50% this year?Or it’s going to be flat, going up sequentially. How is it. . . ?
Evan Gappelberg
It’s a tough decision, Lisa, because we don’t have the chain of origin, do we?So we placed the orders. And if we receive a delivery, we sell thank you. If we don’t, if they say no, we can’t know. So, we were told that we had some orders that had not been delivered. obviously we couldn’t sell. And now we’re getting some of those. . . some of those commands are circulating, going in and out. So let’s sell it. But it is very unlikely that you will expect what 22 will look like. That is, I wouldn’t use this quarter as, say, the metric through which to measure things. I would say it’s very unlikely. I don’t have visibility, right Andrew?
Andres Chan
No, I mean, I think you’ve noticed that other types of ecommerce platforms provide their quarterly results. And they weren’t smart either, and there was no absolutely definitive answer to any of those questions. they are in a kind of expectation trend, similar to what Evan said. And we are, as he said, once we get a product, we sell it. But for now, it’s a matter of getting products.
Lisa Thompson
So if I only had to guess for this quarter, will it be up or toward or in some direction?
Andres Chan
I would be from this quarter.
Lisa Thompson
Great.
Andres Chan
But are we going to get to where we were before? It’s still a type of TBD.
Lisa Thompson
Very bien. Genial. Me glad we had this conversation, because it’s hard to figure things out. Very well. Awesome. Thank you very much. Those were my questions.
Evan Gappelberg
Thank you, Lisa.
Operator
[Operator Instructions]. Then we’ll hear from Randy Orock [ph], a personal investor.
unidentified analyst
Hello.
Evan Gappelberg
Hi Randy.
unidentified analyst
Hi, how are you? He discussed in a podcast, I think the Wall Street Reporter is about to have a positive cash flow, he would want 100,000 models. I wonder how many paid templates you’ve made right now.
Evan Gappelberg
We announced that we made more than 10,000. But we didn’t put a real number on it. It’s between 10,000 and 15,000. But yes, that’s what I mean, it’s developing every day. So, and I don’t forget to say that we needed 100,000 styles to be positive coins. But if I said that, let’s also stay in the brain, I could have said that if we used, say, $10 consistent with the style consistent with the month, which was our expectation, however, we would actually get more coins than anticipated.
As discussed above, the average price of our orders is increasing. And that’s largely due to the fact that we received $20 consistent with the style consistent with the month. And in some cases $25 consistent with the hour consistent with the month, or $15 consistent with the month. style consistent with the month. Therefore, it is still early. It’s a moving target as far as you know, when we get to a positive cash flow. In fact, that’s it.
unidentified analyst
Great, thank you very much.
Evan Gappelberg
Please.
Operator
Then we’ll hear from Peter Levine of Ameriprise Financial.
pierre levin
Hello gentlemen. Thank you for taking the call. I look to the long term of NASDAQ. What do you think it will be for this year in total?
Evan Gappelberg
I’m sure of the total. But I can tell you that we are cutting it to less than a million dollars a month. So I’m sure. . . you can count between $10 million and $15 million. Do you think you’re moderate, Andrew?
Andres Chan
Yes, it’s in the aspect of our generation services.
pierre levin
Okay, then you’re expected to go back on the market, as you did in the last quarter, or do a personal placement, I guess.
Evan Gappelberg
Not us. As we announced. We raised a lot of cash in January. And we have enough cash for the next 12 months. That means the 2022 total.
pierre levin
Okay, and that’s the query I was tired of hearing, but given the state of the markets and everything else, I’m going to launch it there. NASDAQ quote, time, even more a thought. remain?
Evan Gappelberg
No, it’s definitely still a thought. And that’s definitely all we have to do. But he went down the ladder when the percentage of value fell. There are many other things that are more urgent. In reality, it doesn’t seem to be as vital today as it was in the past. that’s still the case, definitely, let’s just say nothing has changed. Our app is active. And we’re still engaged. But it’s less focused. My purpose is to grow the business and manage it.
And so, the NASDAQ, vital, less vital in a bear market environment, much more vital in a bull market.
pierre levin
Yes, right. So I don’t need to stick you on a date or anything like that. But it turns out to me that this is an option for 2023, and nowhere in 2022, if there is?
Evan Gappelberg
You can just make that guess. I didn’t say that.
pierre levin
No, I didn’t say. I know he didn’t, I’m just saying, that’s how it works. And of course, institutional investors will have to have it on a main list, and I love its story. it’s – it’s like a kind of bird and egg query here, when it comes down to it.
Evan Gappelberg
Let me go up that institutional investors are buying small-cap stocks today or promoting dumping. So again, I’m not saying we don’t need to be indexed, however, it doesn’t need to be indexed in the middle of a storm, right?you? So timing is everything. Be patient. Yes, we will be indexed. Today, it’s not a topic that I think applies to one of our investors. So any other questions?
pierre levin
No, just in the money inflow and the NASDAQ deal and that’s what I see here. And I’m glad you’re rotating the three-dimensional models and I wish you good luck.
Evan Gappelberg
thanks so much
pierre levin
Very well. Thank you
Operator
[Operator Instructions] Then we’ll hear from Richard Reiter [ph], an investor.
unidentified analyst
good day.
Evan Gappelberg
Yes, how are you, Richard?
unidentified analyst
Hi, how are you? I was paying attention on the online page to your call. I connected at five o’clock and he died. And all about it, I called the company before and they told me they were running it. I don’t know how many other people have tried to pay attention on this network. But I heard about 30 seconds from you. And then, despite everything, I was able to locate the number of Q4. They give me their number. So I called. Now I have paid attention, but I have lost the first part of the hour of everything.
Evan Gappelberg
Well, I have good news for you, Richard. C recorded, you can pay attention to repetition, don’t miss anything.
unidentified analyst
Good. Very good. However, let me ask you a question. Why do you create something, the map?
Evan Gappelberg
Because yes, I explain. Again, just to reiterate, I spent 30 years on Wall Street. And what I identified is that corporations have undervalued assets, especially small-cap corporations like NexTech. I don’t think ARitize Maps gets any valuation from investors. I don’t think this asset is valued correctly, and the spin-off allows this company to stand and is almost not hidden internally NexTech. And so, the spin-off allows investors, you, me and all the other participants in this call to participate. in the release of this value.
Therefore, we will be able to pay a dividend, a dividend in shares to our shareholders. So if you own NexTech, you will get loose shares in this new company. So instead of owning only NexTech shares, you own NexTech shares plus the spin-out. And as the spin-off goes up in price, which of course we believe, its portfolio goes up in price and we help increase the price of our shareholding. And that’s my goal. That’s why we executed it.
unidentified analyst
How much are they doing now?
Evan Gappelberg
It’s a start-up. It’s just a start-up. They literally begin. So they’re not, they don’t go to our source of income at all. We don’t lose anything. We’re just winning.
unidentified analyst
Bien. No know if it’s fair to say that, but I’ll go ahead and pay attention to repetition when it’s available. And I can remind you. You put my call on the side because I had been waiting a long time to hear this call. I was disappointed when it stopped, so I need to digest the curtains they use, I can call the company and say hello. So I hope I don’t care.
Evan Gappelberg
Lol
unidentified analyst
Thank you.
Evan Gappelberg
No problem. We’ici. Au see Richard again. Thanks for listening.
unidentified analyst
I heard all his stuff from the Wall Street Reporter. I’ve been listening to him for a few years. So I have a lot of shares. So I’m interested. Okay, thank you. Yes. That you have a day.
Evan Gappelberg
Thank you Richard. You too. All right, let’s take another pair, some other call. Another question.
Operator
Then we’ll hear from John Reynolds, who is also a personal investor.
unidentified analyst
Hello Eva.
Evan Gappelberg
Hi John. How is he?
unidentified analyst
Hey, I’d like to go a little blank with this NASDAQ deal for some of our valued shareholders who continually pressure you to do so. I only had one company, a personal company that I invested in that went public and they wanted to pass the NASDAQ and it did, but other people don’t buy stocks just because they’re on the NASDAQ.
We had 4 opposing percentages just to hit the $2 minimum of percentages. And it is that I do not do very well with the opposite inventory division. So I think other people want to perceive that establishments are not moving to buy percentages just because they are worth $2 and are indexed on the NASDAQ. So I think other people want to be patient with you. And let’s move on from that. Because I don’t think anyone here needs to have a percentage group.
Evan Gappelberg
Yes, I appreciate that. And I think more about your point, there is no nirvana. There is no silver bullet. In fact, the NASDAQ is not a silver bullet as Richard mentioned. Many corporations that are suffering on the NASDAQ. I assume my mistake was that I thought we were going to be indexed on the NASDAQ. So I told our investors and it seems not to forget and they don’t need to give up. It’s like anything they’re a little obsessed with. But thank you, Richard, for sharing this story.
Do you have any questions for me?
unidentified analyst
is ricardo But. . .
Evan Gappelberg
I’m sorry.
unidentified analyst
That was it. I’m coming, other people are criticizing the NASDAQ issue. And I think they want to be more patient and keep moving forward like you do in the development of the business and the time we’re going to have on the NASDAQ, I’m sure. .
Evan Gappelberg
Thank you, Jean. I sincerely appreciate your support. And I think investors deserve to pay attention to what John says, because what he says is the truth. And again, there is no such thing as nirvana. There are countless corporations on the NASDAQ that don’t let it go. This is not a guarantee. That said, when the time is right and our business develops pretty quickly, we will belong to the NASDAQ. Establishments will buy our shares. And I think this will be a wonderful credit to NexTech. But as discussed above, timing is of very important importance.
So I don’t think this is the time to pedal on the steel over that. So let’s put aside the conversation about NASDAQ. We may only have one set, we may only keep an hour here on the NASDAQ.
unidentified analyst
well I see. . .
Evan Gappelberg
Thank you.
unidentified analyst
. . . the NASDAQ.
Evan Gappelberg
Exactly. Thank you, Jean. I appreciate your contribution. Have a good night.
Operator
And that’s all the time we have for questions today. I would like to return to all of you for any final comments.
Evan Gappelberg
Yes, I’m just going to thank our investors. It is an eventful moment. My purpose is to generate value for shareholders. I don’t plan to place some other CEO as invested as I am. And with that, I end today’s appeal. Thank you all for participating, and everyone, have a pleasant evening. Good night.
Operator
And again, that concludes today’s conference. Thank you all for us. You can now log out.