Nextech3D.AI Corporation (NEXCF) Earnings Call Transcript & Summary

Okay. Welcome everybody to Wall Street Reporter's Next Super Stock Live Stream December 7, and we are back with NexTech and what I refer to as the 100 Baggers CEO, Evan Gappelberg. Evan, welcome back.

Thanks, Jack. Great to be back. Nice tie by the way. It looks like a very -- is that a new tie?

Just for you, especially for you. So, Evan right now, NexTech -- we're coming into like the last days of 2022 where here's the amazing thing, NexTech right now is standing, it's really at the threshold of what I believe is going to be explosive growth. The foundation has been laid. You got -- you have the contracts with Amazon, everything that's been done, you got the spinoff. Like next year, I believe could be an incredible year for NexTech. And I think it's important really first before we talk about everything that's ahead, all the catalysts that could really drive the stock, create the value, I think it's important to first start off maybe to recap everything that's been done, which is laying the foundation for what could be really an epic year in the next couple months.

Yes, I do want to recap. But you know what, Jack, I want to recap a little bit about what I've done for investors, what I've done for shareholders in NexTech and even beyond -- before NexTech. So if you go all the way back, I've mentioned that Take 2 Interactive Software that I took public back in the 1990s, I don't know if investors realize that I created generational wealth for some of my investors that called me up a decade later telling me how they're gifting their children and grandchildren millions of dollars in stock in Take 2 Interactive Software. Now fast forward to current day, and let's not forget how NexTech was formed. It was a spinout. NexTech was a spin out at $0.25 a share. If you had invested $10,000 in NexTech at $0.25, you would have ended up with 40,000 shares, right $10,000, $0.25, 40,000 shares. Well, at NexTech's peak, and let's just use peak for just a moment, we're just going to dream that we're perfect, and we sold at $10 a share. We know some people did. But anyways, the stock at $10 a share, 40,000 shares at $10 a share is $4 million. Is that right, Jack?

Well, 40,000 of 10 is 400,000, right?

$400,000?

$400,000, still not bad, right?

$400,000, okay. We're not up to the $4 million yet. We're going to get there.

Okay.

$400,000. Now let's just say you were able to take that $400,000 and invest that in the next spinout that I've brought to market.

ARway.

ARway. That's ARway. Now that has gone up [indiscernible], and then you get to the $4 million, right? $10,000 invested in the NexTech spinout would be worth if you were able to parlay it.

Yes, parlay it.

Now you could take 90%, just lop 90% off of that.

Okay, so $10,000, right? The reality is this, the reality as investors, if somebody said, okay, look, I'm going to make a bet on the Evan Gappelberg Express. I'm going to put down $10,000. That $10,000 in theory could have been worth $4 million.

Could have been worth $4 million if you continued to invest.

Yes, yes.

Now I, obviously, realistically nobody sold at the top, but let's just say you were able to get 10% of that gain, 10% of the $4 million is still $400,000 on the $10,000. Now that's from 2018 Q4 to where are we now 2022 Q4. Okay. What is the point of me -- I'm not telling you this to pat myself on the shoulder brag. Let's keep in mind a couple of things. Number one, we did our ARway spinout; #2, we're going to do additional spinouts. It could be as soon as Q1 2023. Not going to announce it on the show, but we are looking at this very, very seriously, very, very seriously. And there likely will be an opportunity for you, Mr. and Mr. NexTech shareholder to invest in the spinout. Now, remember, I am the largest shareholder in NexTech, and I got a big dividend in ARway, right. My big dividend, if I had 10 million shares, I got roughly 400,000 shares, $2 a share, that's $800,000 on my money, and it's still just getting started, right? Now if the same thing happens with the next spinout, and there's no guarantees, but it could repeat, history does repeat, as Jack likes to say, it starts to add up quite significantly and quite quickly. And so when you think about.

It's with compounding. With [indiscernible].

It does start compounding, but when you think about investing in NexTech, and this is critical because you got to take the longer-term view, it's not just about being a one-hit wonder like a lot of other public companies, a lot of Jack's stable of companies that he's covered, they're one-hit wonders. They are one-hit wonders. You know it's true.

It's true. It's true. I talk about it in my book. [indiscernible]. Yes.

There's plenty of one-hit wonders out there, right? They have that moment. They have a moment, right? Okay. I've had so many moments and it's kind of pretty definitive. But I guess I know what to do in terms of creating shareholder value, and I'm not done. 2023 is going to be epic. I've said we had the 2020 that was epic. No question. 2023 is also going to be epic, and I'm predicting that.

I think -- you know what, Evan, I really believe, and again, I don't know what you have lined up, but I believe that what we saw in 2020, that 10x move or more actually, that's really just a preview, a prelude to what the real story is because the company was just -- the 3D models, the AR, it wasn't even mainstream yet. It's going mainstream now. So imagine what happened then.

It is.

Now this is the big move. It's like Amazon back in -- I don't know when it became public or whatever, they had a move, right? But the big move happened later, the real big move. So it's like, what we saw was a preview. And then the big move is now because the market wasn't ready yet for the AR, so imagine if what we saw with the stock, but I just want to add something, which is what -- I mean I don't want to like -- I don't understand old promotional, whatever. But, look, I just came up with this book, Ten Bagger Blueprint. And one of the things I talk about is, okay, how do you find these stocks that have 10x to 100x upside, right? And the big thing, I believe is, look, you got to have -- when it comes to microcap stocks, you don't look for the 100x stock, you got to look for the 100x CEO, right? And those are very rare. I believe you are one of them, which is why I really believe that NexTech is going to be one of the big, big winners of 2023.

Are there any other…

[indiscernible].

Do you work with any other -- are there any other 100x CEOs that you work with?

Not at the moment.

Because, seriously, I'd like to meet.

Actually we've got people -- but look, the reality is this. The reality is you have a track record of all sorts we do.

Yes. Look, there aren't that many people that understand the ins and outs of the financial markets as I do, having managed money and worked on Wall Street for a long time. But more importantly, I've also worked on main street, and let's talk for a minute about the significant highlights for NexTech, and let's talk about 2023 predictions, okay? So we're going to just start with a little bit of a year-end review. If you think about what has been driving NexTech in 2022, at the top of the list, the number one driver is Amazon, becoming a preferred 3D model supplier for Amazon was transformative for our company. Another transformative event, and this we had to work -- we worked really hard at landing Amazon. These things don't happen easily, but also we were able to reduce our burn from a peak in 2021 of $2 million a month to now $500,000. That's a significant, significant reduction and it's going down even more. When you look at our 3D model business, the demand is now surging. We're getting a major interest from enterprise companies, as mentioned earlier. If you think about the top 3, we think we will have the top 3, that's Amazon, Walmart, and Target, and we will announce as we land those. But for today, we know that we've landed Amazon, we know we have CB2, we know we have Kohl's, and we know we have over a hundred other small- to mid-size e-commerce sites that we supply 3D models for. If you look at 3D models, we do have a breakthrough in technology. We just announced a breakthrough with our AI, which is a big deal for 2022, and it really sets the stage for 2023, for our ability to scale and for our profit margin to go up. If you think about ARway, that's a huge, huge accomplishment in 2022. It was spun out, it went up 10x, that's not insignificant. That means...

In 10 days, by the way.

In 10 days, we created $50 million in shareholder value, $50 million NexTech stock did not go down by $50 million. There was a lot of fear with the NexTech shareholders. It did not turn into a bad thing. It turned into a very, very positive thing for NexTech shareholders, and so we're going to repeat unlocking the tremendous value for NexTech and its shareholders of the companies that the technology that we have locked inside of NexTech, I think there's 3 or 4 additional spinouts, not including the 3D model business, I'm not talking about the 3D model business.

Hold on a second. Okay, so there's 3 or 4 potential baby unicorn spinouts that could happen?

Yes. And so that's -- and there's likely going to be one in Q1, I will just put that out there. There's likely going to be another one in Q1. If you think about ARway, we're integrating it into Map Dynamics, which is now a NexTech event solutions. It's going to transform Map Dynamics into an event technology software solution. That could be a spinout very easily. I wouldn't be surprised. Remember, we hired in 2022 key executives to scale the Map D business. We are positioning ourselves and again shifting Map D into NexTech event solutions, which is going to disrupt the $50 billion live event industry. These are events that happen all over the country every week. There's another event happening at the Javits Center at the McCormick Center in Chicago and on and on. So we think that we're going to disrupt that industry and grab a much, much bigger piece of that pie, Toggle3D, we've announced that that's going to be a big deal for NexTech. That is our CAD software in a design studio. It's the ultimate 3D design studio. You don't need any experience with 3D modeling. You can even use it, Jack, and I know you're not so techno savvy, but you could even create 3D. It's really super-simple. And you know what, I would even put a potential spinout sticker on Toggle3D, could be spun out. If you look at our ARitize Configurator, the ARitize Decorator, and the ARitize Swirl, those were 3 pieces of software again that support the 3D ecosystem. Maybe that's a spinout. If you think about all this technology, it all supports the world of 3D, which is really in the end of the day what…

I think really -- I think, ultimately, look, and again I want to talk about, we can go through details of the contracts, 3D model, all that stuff, what's happening in industry. I still think it's very important -- I don't think I've emphasized that enough, maybe I have, but I don't think people have understood it clearly enough is that the reality is, again, with NexTech, again, if I would look at the investment thesis for NexTech, it's really -- again it's like the same thing with Tesla, if somebody looked at Tesla as a car company back whenever, it was like e-cars or electric vehicles or whatever, but if people were to say, hey, I'm betting on the 100x CEO, that was the correct bet. I think with NexTech essentially, the correct investment thesis to bet, again I'm not giving you any advice here, but the correct investment thesis is, okay, I'm making a bet on the 100x CEO because the reality is what NexTech -- the company is constantly evolving. And what we're talking about right now, the company might look completely different in a year, 18 months, the company keeps transforming, but the reality is the underlying -- the idea though is you, the CEO of the company has constantly been focused on creating shareholder value, and we're seeing that constantly. There's a focus on that. What I noticed with a lot of public companies, especially in the small cap, or even -- especially midcap also, space is that a lot of these guys they're focused on the business because they never really work in the capital markets, they don't really understand investors' mindsets. They think that, hey, if we just build the business, widgets, whatever, the stock is going to go up. No. Investors buy stock because they want the stock to go up. That's the only reason we should buy a stock is that you buy at a $1, it goes to $10, you repeat the process. That's what people buy stocks. So they don't care if you have revenues or whatever. The reality is NexTech essentially it has a track record, an incredible track record of massive value creation, which I believe I think it's unparalleled. I haven't seen anything like this. I don't know, we had the great companies back in like Safeguard Scientifics, Thermo, they did the spinouts and all that. And those stocks went to the move literally. There were [indiscernible] here.

Yes, they were.

Then NexTech I think is that type of stock for the new generation for the 2020s, it's what those guys were doing back in the 90s and the early 2000s.

Yes you're hitting on an important point, Jack. So you're right, look, at a base level, when you think about investing you're investing in a business and you want revenues to keep growing and then the stock should keep growing with the revenues, right? That's really -- and then earnings and profits and EBITDA or whatever, okay. But when you're dealing with these startup companies, it's not a straight line like that. You're not talking about Procter & Gamble or Coca-Cola, companies that have 100-year history of growing and global distribution, right?

It's a start-up basically.

And when you're in startup land, and this is critical, it's a completely different rulebook, completely different. Jack, are you in this city somewhere? I hear a...

Yes.

They're coming for you, Jack. Here they are.

They're coming for the stock here. They're coming to get...

Yes. Jack, you perhaps put on mute when they go by.

Hang on, yes, I should do that.

There you go, okay. So as I was saying it's a different rule book when you're dealing with small cap, microcap, right, because the businesses are not fully established, it's not a straight line, and that's when people like myself can really create the value, because it's a specialized way of thinking. It's not a straight line. And right now what we're doing, what I'm doing with my team is we're looking at our assets we're looking at our products, our businesses, and we're working on trying to create value for shareholders. And look, there's one path which is pretty crystal clear, if our shareholders don't remember, or maybe there's some new ones here, last quarter, Q3, we showed 192% sequential increase in our 3D modeling revenue we're going to see another big increase in our 3D modeling revenue sequentially for Q4, and we think that that's going to continue throughout 2023. So the traditional business model of following a company's revenue and seeing the share price go and following the earnings and cash flow that is in play, make no mistake about it. That is happening. But in addition to that, we've invested in a -- Jack, you got to go on mute -- we've invested in a number of technologies Toggle3D, our Map Dynamics, ARway, they're not really part of making the 3D models and supplying Amazon, Target and Walmart and others. And so what do we do with those? Well, we could develop those businesses, but it costs money and it takes a lot of brain power, it takes a lot of minds. I have to spend time strategically thinking about selling those products, having sales people, and marketing those products. It's a different -- we're not marketing ARway to Target and Walmart and Amazon. It's not the same customer for indoor wayfinding. They might buy it, but it's not exactly the same customer. So my point is that, that's why these spinouts are so strategically important for shareholders to see the value of those spinouts which already is evident with ARway, but also for NexTech to be able to focus on the 3D modeling business and deliver to these 800-pound gorillas, these [indiscernible]. And so that's really what people need to think about when they're investing in NexTech is that these spinouts create massive value, massive upside potential with companies that are hyper-focused, laser-focused on selling and delivering the product that those companies represent, whether it's wayfinding, whether it's NexTech event solutions, whether it's a design studio for 3D models, whether it's human holograms. Those things need a focused attention. They absolutely need -- any startup needs focused attention. And NexTech our focused attention is really on 3D modeling, as it should be, because that's where the revenue is coming from, right? That's where the demand gen is coming from today, and it's quite massive. When I say massive, I was working through the numbers the other day with my team, and it's something like 450 million models with just 3 big boys: Amazon, Target, Walmart, 450 million SKUs. That is massive. When you look at what we've done to date and really the industry as a whole, the industry as a whole, the entire 3D model ecosystem for e-commerce is sub-1 million models.

Right now, only 1 million models have been made.

That's it. Only 1 million models. And that's in last 10 years. That's in 10 years. So now, you got 400 million plus, 450 million with just those 3 big boys, that doesn't include a lot of others, you're probably talking 1 billion models globally, Jack.

So the opportunity -- dollar opportunity, how big?

Jack, I think this is a 10-year run, a 10 year run that's what I think. It's going to take a long time to develop an ecosystem.

This is not like a fad where it's going to be like, if you remember back in the day they had the from document scanning them, they shred the documents, they scan them, so it goes, so that lasted a couple years. It actually lasted -- it didn't last like probably 10 years though actually.

No, no, this is not shredding documents. This is more like high-speed Internet where right now we're on high-speed, we don't even think about it anymore. 3D models are going to be made by AI, and we're going to be the 3D model to AI engine that supplies the entire ecosystem. We're going to unveil in Q1 something that we haven't really spoken about. I don't even think I've told you about this, Jack, that we're going to have essentially an ecosystem where all the 3D models that we make are going to be indexed. And so as new 3D models come in, all of the parts and pieces are going to be together in AI, the AI is going to have this just massive amount of content. And when you think about it, that's going to give us this ability to really own the market and that's the goal is to own this 3D market where we want to make -- we want to be the last guy standing or at least the biggest 3D model supplier because the opportunity is that big. That's basically when we started, why we got started, and if you think about supplying Amazon as a preferred 3D model supplier and other big-box retailers that we've been talking about, there's no reason why we're not going to be that definitive 3D model supplier where when people say, where do I get my 3D models? NexTech.

So there's $5 trillion in e-commerce that's going to be shifting, they got to go to 3D models. We're starting to see it now. The leader is obviously you've got Amazon, you've got the other guy. So Amazon is giving you right now so far it's like what, it's a $7 million contract. This is just new. It just started now. This is not like it was last year. It's like in the last few months, right? So what you're telling me that it could be a lot more just from that company? And again, this is not -- $7 million doesn't cover all their SKUs, right.

No, no, let's be clear. Amazon has millions of merchants, millions. And each merchant has, I don't know, call it 10, 20, I don't know, pick a number, how many SKUs. And so multiply, let's just say it's 20 SKUs times 2 million merchants that's 40 million SKUs, 40 million, 40 million. In 2023, Amazon is opening their platform to their millions of merchants to be able to bring 3D models onto the Amazon platform. It's never happened before. This is a brand new watershed moment for the entire industry. Everybody at Walmart, at Target, I don't know any other retailers out there that mean anything, Jack, Wayfair, I don't know.

There's a bunch, yes.

There's a couple, right? They're all going to sit up, they're going to read the press release, and say wow...

We got to get onboard that.

We got to get into 3D models. Amazon's opening up their platform, we have to follow suit, game over or game on, depending on...

That is the big inflection point for the 3D model.

And it's happening in Q1. Q1 is what, what is that, 3 weeks away?

3 weeks away.

So, from my perspective, this is really an exciting time between the spinout of the ARway, which just happened, between additional spinouts which are happening, between Amazon and everybody else pivoting -- $5.5 trillion global ecomm ecosystem pivoting to 3D in 2023, it sets the stage for what I think everybody is going to -- and anyone that's paying attention, this is like going to be the blow-your-hair-back kind of growth in 2023 that everybody craves, that everybody wants a piece of where it's like, okay, let me find some stock, some company that has some alpha, where the revenue an...

By the way, speaking of alpha, NexTech has delivered alpha, because if you look at the tech stocks in 2022, most tech stocks are down 75% or more, all the Cathie Woods stocks are down 75%, 90%. NexTech is one of the maybe -- I don't know if it's the only, but it's one of the few stocks that's actually right around the same level as -- actually it was up ahead a little bit, but it's at the same level where it started [indiscernible]. It tells me that when the market stabilizes, this thing is really set up for massive explosion because it tells you the underlying demand for the share [indiscernible] neutralized.

I think we got to give our shareholders credit for sticking with this during turbulent market times, because the reflex reaction is, if you just read headlines, the world's coming to an end, stagflation, inflation, debt explosion, I don't know, crypto scam, it's like every other day there's like more and more and more negativity about the world, not to even talk about politics. So all of that creates an environment where it's so much easier just to sell and look at your money, at least today you could probably get 2%, 3% on your money. But again I want to pat our investors on the back for holding their position, which I do think will reward them in 2023 and beyond by not getting scared out of the market. Now let's talk about...

I think one of the reasons why the stock has performed is because again going back to the 100 Bagger CEO thesis, look, you've been very transparent in engaging with investors throughout this whole time. Most CEOs in the microcap space, they've basically been in hiding, in caves in Afghanistan with Bin Laden or whatever, they're hiding out. They're MIA. They're not responding, no news, everybody is like MIA. And those stocks, people if they don't hear any news, they dump those stocks.

Jack, it's my job. Yes, I feel like it's my job. I owe it to our investors. They put a lot of their hard-earned capital into our company, and so it's my job to inform them. And that's why I'm here. I'm literally here to inform our investors on what's going on in NexTech land, what's going on in my mind. And let's just talk about 2023 for a second again...

By the way, speaking of, we're also going to get to questions. That's the big part. So we're going to get -- we've got a lot of great questions that we're going to get to. That's the other thing.

So 2023 predictions, 1, maybe 2 more spinouts, could be more, more Amazon size deals, improving margin due to the AI taking over, improving scaling capabilities, that means the production of 3D models because again the AI is going to take over, and 2023 in my book is the beginning of a multiyear run in 3D modeling revenue for NexTech. It's just the beginning of a multiyear run. Now let's talk about some 2023 positive macro level surprises which are not baked into the market at all. I believe that in 2023 the war with Ukraine ends, I do. I think it ends in 2023. I could be wrong because...

They're running out of ammo already.

Russia has a history of grinding -- of just grinding, if you look at the Afghan War before, we went to war in Afghanistan and Russia was there for like, I don't know, what was it a decade or more. And so they do kind of grind, but I'm predicting, this war is in Europe. It's not in Afghanistan in the desert somewhere. This is in the backyard of Europe. And so I have to believe that the mounting pressure is good. The war is going to end, and that's going to be a huge, huge positive for the stock market. My second prediction is the bear market ends. I think the bear market is going to end in 2023. Now does that mean...

I think February-March...

Let me quantify that. Bear market ending does not mean we go back to the heydays of the 2020s, which was like the 1999 year, right? It's not going to be like that. It's not going to be so crazy.

Except, I think for these stocks that have been like laying the groundwork, it will be like that, because remember like after dotcom crash '03, all the stocks that were beaten down, the ones that were...

Yes, they took off.

They took off. They went back like it was '99. The guys that were hiding out, they didn't recover for years.

Right. And so my last prediction for 2023, and this might shock you, Jack, is that the Wall Street Reporter is going to merge with the Wall Street Journal.

Well, Wall Street Reporter actually has been around -- we started about 50 years before the Journal, right? We've been in talks with Rupert Murdoch [indiscernible].

Jack, that was a joke. Jack, that was just a joke.

But it's 180 years, Wall Street Reporter we're celebrating our 180-year anniversary...

Well, you're negotiating the deal right now, right.

Okay, the [indiscernible], Apple AR glasses.

Jack, that's exactly what I was about to say is that Apple's my third prediction, putting aside the Wall Street Reporter merging with Wall Street Journal is Apple releases its AR glasses, and that gives a huge boost to the technology sector and, of course, NexTech and anybody that's in the 3D-augmented reality.

I don't think people understand how big of a gamechanger, because it's almost like you used this example last time. It's almost like when computers first came out, nobody really needed it because there was no applications. So this has been backwards, because right now you've had the 3D models, but the AR glasses is really what makes it really useful as opposed to looking at the AR stuff on your phone. When you have the app for all -- there's going to be so many applications, and here's what I think is going to happen [indiscernible]. When Apple releases those glasses, there is going to be a frenzy of investor interest in the AR space because you're going to be hearing about AR, AR all the time, CNBC going to be AR Web3, 24/7 because you're Apple. They have, what, a $1 trillion literally. They have hundreds of billions to spend to make sure that this is going to be getting attention and how many pure-play AR stocks are there. There's really nobody except NexTech in terms of a specialty, in terms of real growth, pure-play 3D models in the right place at the right time. So I think that's going to be one of the catalysts or whatever. We think that is the upside for the stock. It's going to be turbocharged by maybe 3x to 5x because again it's going to be part of a massive hot theme. It's going to be an incredible thing to watch. And then this is going to happen I think from what we're hearing could be in the next few months because it was that guy Jason Calacanis, The Insider, he said they're already got developers in their shop at Apple basically.

And Jack, just to be clear, I think ARway is going to actually see an explosion in business on that news. Explosion, I'm using that word -- I'm not just using that word. I mean that when the glasses come out, everybody is going to want an augmented reality wayfinding solution. It's just going to be the standard. And so ARway is going to explode, obviously shopping online and being able to see the 3D model in your space is going to explode, and then if you look at our design studio, Toggle3D, even the events business, where you show up at an event and you're wearing the glasses, you're going to want to see something, all of our businesses, all of our spinouts and potential spinouts, they all tie back to the glasses. And so there's no question...

I think what's interesting actually I want to go back to what you said earlier because in case some might have -- people may have missed out, so 2023 is really when things like could really explode because, again, you already have this triple-digit sequential growth of 3D models, everything else, but the reality is what's going to happen next year is all of a sudden now you can have the AR glasses, so that's really going to turbocharge that whole market.

Yes.

But also what you have going right now is you're going to have the AI stuff which is really going to help you scale. So next year really is when you're really going to start being able to scale, so '24 is probably the real [indiscernible], whatever happens next year, the year after is really when everybody's going to reap the fruits of everything…

Right. But you know how the market works. So let's say next year -- let's just say next year, I'm not saying this is the number, I'm just saying, I don't know, maybe we do $20 million, maybe we do $30 million, whatever the number is. But in 2024, you could triple that. It could be $60 million to $100 million, some really big number. And so what will happen in 2023 is that they'll start discounting, right? As soon as we hit like the 50-yard line in 2023, people will start looking at 2024. By that time...

Yes. Basically, the market's going to be priced. So the big money I believe from an investor's standpoint is -- 2023 is the big -- that's what you call the 10 Bagger window, which in the book -- I want to plug this book again, but The 10 Bagger window is now, it's 2023. This is where the big money is made. While the real revenue is going to come in '24, could be you go from $25 million to $75 million. But now when you go from $2 million to $25 million that's what makes it more…

There's a reason why I bought another 250,000 shares, let's just put it that way. There's a reason why. It's not for no reason. It's like it was -- I feel like I'm picking up cheap stock. And to be honest, it's tempting to buy another 250,000 shares. All my chips are in on NexTech, and from where I'm sitting, I feel like there's going to be this enormous amount of wealth created in NexTech and in the spinout companies. The biggest challenge for us is actually execution. It's going to be not easy to deliver.

Evan, let's go into some questions. We've got some really good questions today.

Yes, let's do it.

First question. Alibaba, you got Amazon. What about Alibaba?

They're in China, right?

Yes.

Yes. So dealing with Chinese companies is very, very complicated these days, so we're staying away from China.

There's more than enough in North America, Europe. Okay, question. Evan, are you still entertaining NexTech buyout? $1 billion market cap, you mentioned as that's the goal.

Yes. What I've said team, so today...

It could probably go 10x from here.

Here's my thinking. First of all, before we would entertain any buyout, we have to complete the spinouts, right? Because if we did actually sell the company before the spinouts happen, if someone buys NexTech, they're never going to develop these businesses, they would just go after the 3D modeling and the AI, and they would just bury those other businesses. So from my perspective, we have to still do the spinouts, and then as mentioned, anything can happen.

Can you have a size the 3D -- oh, this is a good question. Can you help us size the 3D model backlog and how we should think about timing of revenue recognition from this backlog?

Levi, you're thinking too hard, okay? We're going to release our numbers and that literally will tell you what kind of revenue we're doing and the timing of the revenue will be quarter after quarter after quarter. As far as backlog goes, we don't really release our backlog. We're just going to deliver on the quarterly revenue.

What about updating on the pipeline? Because I know people sometimes -- in other words, when you were doing old news every week about, hey, we got news this company saw this company. All of a suddenly they start complaining all those guys putting out too much news about that. So are you going to go back to doing the releases about new companies going into the pipeline? Because you haven't put that out…

So before we had Amazon, we kept announcing deals and brands, I don't like seriously, when you have Amazon, do I need to keep announcing?

I think you should. I think it's good. I think actually it would be good.

Seriously? Like what is the point? It's kind of like...

I don't know, people like that, they like that. They want to hear the pipeline.

I don't really see any point to that. So if we have Target, Walmart, Amazon, people still want us to announce, [ Joules Sofa ] and this mattress company just ordered 100 models, I mean seriously? No, not doing that.

Can you talk about the composition of your management team post-spinout, who's left with AR Maps? Is the departure positive, negative for legacy NexTech?

Okay. So let's be clear, there's no departures. The way it works right now is we have the same teams that are working on ARway when it's under the NexTech umbrella have moved over and they're still working on ARway under the ARway umbrella, but I'm CEO, there's still all the same people involved, we are hiring new sales people for ARway. We are essentially setting up new marketing campaigns. So nobody is departing. It's really just taking, let's say, our 100 employees and dividing them up into pieces of a pie, and then you take a piece and that becomes part of a spinout. That's really the structure right now.

Okay. A couple of people are asking what should they buy, which has more upside, ARway or NexTech.

Look, NexTech...

Which of your children do you like the most?

Yes. So I'm not going to answer that, except I'm going to lay out 2 different scenarios. So NexTech owns 50% of ARway plus it has its other businesses. So with NexTech, you get more of a diversified portfolio type of investment. With ARway it's literally a bet on augmented reality, wayfinding, and that's it. It's a pure-play. So if you want to just bet on augmented reality wayfinding, you buy ARway. My thinking would be to probably divide some of the capital that you're investing because the pure play is potentially -- it could be one of those stocks that you do want to own. And so I think ARway is a must own for people's portfolios just because first-mover advantage, it's a spatial computing platform, again, when the market goes bananas for everything 3D and AR when the glasses come out, they gravitate to ARway more than they gravitate to NexTech. You don't know what the market's going to love, right? And so that's why you [indiscernible].

Okay. Evan, you there?

Yes, I'm here.

Because there was disconnect. Okay, so comment or question. So Garet is saying he doesn't like the idea that there is going to be a lot of spinouts...

Wait, look at Garet's avatar. Who is that? That's like the brain -- I forget the guy's...

Some sci-fi...

It's like a brain with looks like cannabis leaves. Okay, so let's just take this with a grain of salt because he's literally looking -- if that's who he's -- how Garet's representing, I'm not knocking you, Garet, I'm just saying, if you want to be taken a little more seriously by me, you can't have that character. But anyway.

But he has a -- it's a valid question.

Put it back up. We're not going to not answer his question. I do not like the fact, that's your opinion, Garet. That's okay that you do not like. That's like some people don't like chocolate ice cream, they like vanilla. Some people don't like apple pie, they like pecan pie, whatever, you don't like it, okay. I've been invested in NexTech since 2020. Well, I'm the founder and CEO, okay. I have millions of dollars invested. So it's devaluing in your eyes, again, look at your eyes, look in the mirror, they look very red in this and less heavily invested in the spinout. So let me just do the math, I'm going to try and connect the dots for you, Garet. If you invested $10,000 in NexTech, you would have gotten $400 worth of the ARway spinout for free. It's now worth $4,000. That's a 40% return on your $10,000. Now NexTech hasn't gone down. So if you literally -- if I can repeat that 2 or 3 times, you're making a 100% on your money plus you get all the upside in NexTech. Keep in mind, Garet, we're a small-cap company, if you were listening at the beginning of the show, we're not like the big companies that have been around 100 years that don't know what to do with all their money. We have to be very focused on our businesses. The spinouts are pure-plays and the spinouts have dedicated teams that are focused in building those businesses. The spinouts are creating tremendous value for NexTech shareholders. I think you're underestimating, and you're looking at this with a glass half full. You really should be thinking a little differently.

Jeff is asking is there a chance of 3D model can be applied to eBay because there's a lot of SKUs there. But these are again these are one-off type things.

So eBay is like Amazon. They have to open up their platform so that you can load the 3D models onto eBay. Today you can't. They don't let you.

Okay. Let me just see, we've got a question, okay, so apart from the 4 businesses discussed as potential the baby unicorn spinouts, does NexTech consist of other undisclosed technologies? Is there like an Area 51 where you have...

So there is, there is. There's a lot of other undisclosed technologies. I'm not going to get into them other than to say that they're in the AI, artificial intelligence realm, and they're in this same lane as the metaverse and 3D and augmented reality.

You know what, and I'm thinking, like again, the company is constantly transforming. Again, the goal is to create shareholder value. Is it possible that essentially look you've been able to spot these disruptive innovation, these disruptive technologies early on, as we can see with AR, is it possible that at some point NexTech could become almost like a, I don't want to say like a technology incubator, but could you become like an Ark fund but developing stuff internally or buying stuff, like what Cathie Woods does with Ark, but except you're an operating company developing through M&A, and then spinning these out to create more value and look at a perpetual money-making machine?

Isn't that what we are, Jack?

Well, right now you're an AR company, but I'm saying going beyond just AR.

Well, I don't want to go beyond the AR because AR is a multitrillion dollar megatrend. You got to think of it like this. AR is a subset of this whole metaverse transformational technology. So the Internet of Things, AI, VR, AR, when you think of even quantum computing, it's all out there, right? And so it's all converging. And when you look at the 5G, that technology is really driving a lot of this adoption. Soon there'll be 6G or 7G. And so the world is transforming, technology is transforming. We're in front of it with our transformative technology driven by AI. As long as we keep innovating, it doesn't really end. It doesn't really end, Jack. So the point is that, yes, we're basically that company that you're describing today. It's just not fully baked into the market yet because...

Could this be Adobe of AR? They just bought that company for $40 billion.

Yes. So think of Toggle3D as an Adobe-like platform for 3D models and 3D design studio. So if you look at Adobe Substance, it used to be Adobe Illustrator. Adobe Illustrator is merging and converging becoming Substance which is their 3D platform. Toggle3D is going to go head to head. The difference between Toggle3D and what Adobe has, is to work in the Adobe environment ecosystem, you need to spend hours and hours and hours learning, days, weeks, months. With Toggle3D, it's instant on. It's anyone can use it. It's made for everyone. That's the difference. So what do you think, who's going to win out? It's a rhetorical question I guess. The holograms, if you go back to the holograms, the guy was talking about the holograms.

Yes, question about hologram.

Yes. The human holograms are going to be everywhere. Look, Poke, [ Bee ], it's going to happen, okay. Yes we are planning -- we're dusting off the hologram HoloX app, and we're now relaunching that into the event tech space. So you need -- these technologies need somebody to be driving them. And I can't drive 5 different cars at the same time. Maybe Elon can. I can't do it. I could create these 5 businesses, but somebody else -- he just has unlimited money, so it's an unfair advantage. If I had more money, I could hire people to just -- pay them $1 million a year or whatever to drive these businesses. So in the end, I'm the one driving it. And so the point is that, the HoloX, I agree, it's going to be everywhere. We are pushing that back into the market in 2023.

We've got an interesting question here, okay. Would NexTech consider allocating 5% of revenues into dividend stocks for constant/ consistent -- are you going to become like the Warren Buffett. Basically, is NexTech going to become like a value...

See, I love that guy. That guy is thinking...

Because again...

Let me tell you what he's thinking. He's thinking about creating value for shareholders and that's exactly what I think about. And so if NexTech has a windfall game like let's say ARway goes to $20, then we end up with, I don't know, $0.25 billion in cash. From that, okay, you take $0.25 billion and like the investor just said, you roll some of that into dividend stocks that start paying you 3%, 4% whatever, maybe you're making $3 million, $4 million a year in dividends that can be distributed to either shareholders or reinvested if we think we could do better. There's tons and tons and tons of ways for us to create shareholder value, but that is an interesting way. I'm looking for ways to create shareholder values. The spinout, the ARway spinout was the first spinout that we did in an effort to create to unlock the value. We've talked about it over and over and over again. It worked. Is it definitive? I think it is, right? So why wouldn't we do that again? Why wouldn't we? It worked.

Yes. If you look at like Berkshire Hathaway, right, if somebody was buying that as a -- they were textile business when Buffett became -- I think when he took it over. We was running a textile business for a number of years before he got into all these other things, insurance, everything else, and now it's the [indiscernible]. So it could be -- I'm not saying that we're going to go and do it. But NexTech, whatever it is today, it could be something completely different, but the idea has always been from day one, just like Warren Buffett, well, his whole idea was to create shareholder value. He didn't care if he was in the textile business, it doesn't matter. Just the idea is make the stock go from $1 to $1,000. And the same thing here. I think, okay, AR, whatever, spinouts, this, that, whatever, the idea is to make this stock go from $1 to not $1,000 but let's say $100, let's say $10. Let's get $10 first before we talk about the rest. But the idea is shareholder value creation. And people are seeing it. The numbers don't lie. We're seeing what happened from day one, the first [indiscernible] word is now, and next year what's on deck is really incredible.

Yes. And again just to reiterate, NexTech was a spinout. Investors are...

This guy is saying you're the next Warren Buffett. You're the second coming of Warren Buffett. Maybe Warren Buffett could have you be the -- because he's looking for a replacement, right? He's 90 or something.

I was thinking about, I own some Berkshire Hathaway. I was talking to my uncle who's a big Berkshire Hathaway fan and Buffett fan. And he's like, do you own Buffett. I'm like, yes, I have a little. I want to buy more, but I'm waiting for him to -- it sounds terrible, but I'm waiting for him to die because the stock's going to probably go down like 10%, and then we start talking about, he's like 90, Charlie Munger is like 98. These guys I don't know how they're living so long on Coca-Cola and McDonald's. They seemingly eat and drink junk food. I don't know, it's hilarious.

That's the secret. Well, the idea is I think if you create shareholder value, it motivates me to...

He could live forever.

Yes, exactly. That's the idea.

Maybe they just feel so good about making so many people so wealthy that they can live forever. Look, life is short, Jack, and from my perspective, as CEO of a public company, my job is to create shareholder value. And until I feel like I'm done doing that, I feel like I owe it to the shareholders to continue to come on the show with you and subject myself to all these questions and to your humor, Jack. You're hilarious.

All right, Evan, on that note, let's take -- we had some great questions today. Evan, thank you for answering. We had some good questions. We don't just ask puff piece questions. Every question we put up. This is not -- it is all very transparent, uncensored here.

The Wall Street Reporter strikes again.

Exactly, okay. Evan, thank you, again. Thank you, everybody, for joining us. And hopefully we'll catch up maybe before the end of the year, but definitely in the first...

No.

No?

I'm pretty sure that this is going to be the last show for 2023, and we're going to roll into -- unless something late breaking news -- if something dramatic happens, we will show up again.

Okay. Because I know you have projects that you're going to be working on, so…

There are some dramatic...

Area 51 type stuff.

Yes. But things are slowing down. I know everybody is getting ready for the holidays. And so from my perspective, I think we've covered pretty much everything, unless something new and dramatic...

You never know. You never know. Stay tuned, everyone. As you say, stay tuned. Evan, thank you, again. Thank you, everybody. We'll see you in January.

Yes.

Happy New Year to your 100x.