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

Well, hello, friends. Once again, I'm Steve Darling with Proactive, joining you from our worldwide broadcast center in Vancouver as we present another live stream event this time with NexTech3D.ai. We've got a lot to talk about today. NexTech had a major news release out this morning, talking about their work with Amazon, once again, we'll get the details of that just a couple of minutes. And of course, we're always looking for your input as well. If you have a question you'd like to ask Evan and our other guest, Reza, that we invite you to do that in the chat function. I will take a look at those and put your questions to the CEO and also the COO. So let's do that now and introduce our 2 guests, first off, Evan Gappelberg, the CEO of NexTech3D.ai. Evan, welcome back. Nice to see you again.

Thanks, Steve. Great to be back with you again.

Yes. Let's also bring in Reza Davariar, and Reza, of course, is the Chief Operating Officer of NexTech. And Reza, it's good to have you along as well.

Well, Steve, thanks for having me.

Yes. So we're super excited to talk about a number of different things going on today and sort of process and where we're at, where we're going and all that kind of fun stuff that you have with the company. So let me begin with Evan. Evan, a big news release out this morning, talking about passing 50,000 is the number for models made. So I just thought to give you an opportunity to talk a little bit about that press release and really what it means for the company as you set this road map to try and move things forward.

Yes. It is a big milestone for us. It really just signals to our investors that we are ramping up production rapidly that the demand is now starting to really ratchet up and our ability to meet the demand is also starting to increase and scale. And so when you think about 50,000 3D models, I always think in terms of millions of 3D models. So 50,000 really is a drop in the bucket when you look at the size of the market. So kudos to the team, though, really Reza, who's going to be talking some more. He's the guy leading the charge. He's really turned this factory, this 3D model factory into a fine-tuned machine and it's driving record-breaking numbers. I mean at the end of the day, the 50,000 models, Steve, represent revenue. And so what we're really saying is, hey, please pay attention, investors. Because 50,000 models is a lot of revenue coming in the door, and it's starting to scale where the production, we were at a much, much lower number in the beginning of the year and now things are really starting to ratchet up. So we already reported preliminary Q2 numbers of $1.4 million, up 155%. But the big news is really about Q3. Q4, we haven't spoken about but we expect that to be the quarter where things really take it to a whole another level. So from our standpoint, today's news about 50,000 models is really just the beginning. This is the first time that we have come out and really started to talk about production numbers. When I think about where we're going to be in 2024, I think 50,000 is going to look like a small number in comparison. And then obviously, 2025 and beyond, it's really just this massive, massive market with hundreds of millions of models. People keep asking me, how are you going to produce? How are you going to deliver on hundreds of millions of models? And my answer is AI. I'm not going to make 100 million models. I can tell you that. And none of our other employees are going to make 100 million models. But the AI can do it. And that's really the key to this whole story where the AI is now starting to play a bigger role. It's going to play an even bigger role in the second half of the year. And as we roll into 2024, the AI is going to be the dominant technology that we use, and it's going to get stronger and stronger, and more and more capable. And our plan is that the AI is going to be making models 24/7, 365 days. And I would say that the majority of our business in the future now today is going to be self-serve where people maybe show a picture to the AI, the AI goes into our parts-based library, pulls the 3D parts that we've already created and then textures those 3D parts to match the color and the design. And then, of course, because we're an Amazon-preferred supplier, will QA quality assurance check the model to make sure there's no imperfections. If there are imperfections that might be the only point of contact that a human has with the model. And then from there, it just goes on to the Amazon portal. And so that's really the ultimate goal here is to create an automated workflow using AI, Steve. But the 50,000 3D models, this is just the beginning.

Yes. Evan, good question here from [ Sean Lucas ] talking about recurring revenue as far as these are concerned, and it goes even further to say, like subscription model. So can you talk a bit about that part of it, so people understand?

Yes. So we do have some subscription models, some revenue that comes in every month like clockwork. But that's not the business that we're in with Amazon. Amazon is buying the models outright. So the majority of our business has shifted. But the reality is, is that if you think about it, if you have such a massive, massive growth opportunity in terms of 3D model production, it's almost the same thing. If you have an endless amount of demand every single month, our number gets bigger and bigger in terms of production. So some of those models are, but most of them are not recurring revenue today.

Okay. Let's bring Reza in on the area. Reza, Let's get some comments on you about 50,000. I know it wasn't like you're all waiting 49,999. But I'm sure it's a big milestone for you and the team to see that number.

Yes, truly is, when you look at the 50,000 it's just -- as Evan mentioned, it's just not about the numbers where we are going to go, it's limited to sky high. But one of the things that I'd like to mention really where this 50,000 came from, who's getting it. So it's not subscription-based. It's customers in e-commerce world. And there is something that I would like to share that based on the U.S. commerce sales, the digital research that they have done in 2022, they have shown a 6.8% increase in retail sales, brick-and-mortar and from $4.5 billion to somewhere around $4.8 million. But it is duly mentioned, we have to mention this that there was a $1 trillion for e-commerce. For the first time in 2022, we passed the $1 trillion in e-commerce business. So now that is a 7% increase over 2021. And that was the lowest increase since 2009. What does that tell you? That even though they are showing decrease compared to 2009, but they still had highest increase in any retail market in the U.S., that means customers are shopping online regardless. They are showcasing every product online. They are researching the products online to fit their needs. Now this 50,000 model that we have done is not just the 3D model, it is the entire customer's experience in shopping online. We bring 3D model with augmented reality. It's not just a 3D model alone by itself, it's what customers experiencing it online. And these customers that they came to us as the e-commerce and asked us to convert their model to 3D on the website because they have seen the increase of traffic, click-through and purchase in cart. They've seen the growth. They came back to us and they ask for more. So we keep on creating more 3D models instead of a static picture that the website usually uses. Right now, they realize each product or any category they open up online, for a 3D model, it shows increase quarter-after-quarter, year-after-year with the highest profit margin and customers are happier the returns are less. There's 50,000 models we gave to our customer. It brought them more revenue and brought the more loyal customers shopping on their site.

Yes. Yes. Exactly, Reza. I think those are very good points. And I just read, I think you read the same article, Reza, that Walmart has now decided that they want to step into the 3D modeling business, and they have an app that they launched where there's 7,000 3D models in their app. Now think about that. Walmart is crowing about the fact that they have 7,000 3D models. We are coming out and announcing that we've delivered 50,000. It is kind of a big contrast. I mean they're not in the 3D modeling business, fine, I'll give them that. But we're producing 7 times as many 3D models as Amazon has in their app. But the key takeaway with the Walmart article was that they're experiencing a huge amount of customer satisfaction, where the customers are able to put the TVs on the wall and see how it looks in their space before they buy. And that's what Reza is speaking to is that this whole customer journey that's really driving this whole transformation, there's a lot of demand from the consumer side, Steve, to get more 3D models out there because without the 3D model, there's no augmented reality experience. You can't see it in your space. You need the 3D model. So the 3D model is ground zero for augmented reality. And as we know, augmented reality is being touted by Apple. It's being touted by Amazon, by Walmart, by Target, by everybody as this new immersive way of conducting commerce. I mean Snap is another one. They use a tremendous amount of augmented reality. So augmented reality doesn't work without a 3D model, and that's really where NexTech kind of sits in front of that whole ecosystem and says, "Okay, if you want to get your augmented reality experience, we'll produce the 3D model for you." And if you go on Amazon, I don't think they have 3D models on their website. It's in their app. And the reason is that in their app, they have the augmented reality experience, where they have an immersive shopping experience with arrows and circles and they're able to measure and really show you your -- the 3D model, the product in your space. And so that's really quite interesting to me that there is this push towards augmented reality. Sometimes I forget about the fact that we're feeding the whole augmented reality ecosystem, not just 3D models, but we're feeding AR. And when you think about the growth of augmented reality, I was just looking at a number that it's going to be a $150 billion business in the next year or 2. So these are massive numbers when compared to NexTech. I mean our market cap today is like USD 30 million, CAD 40 million. And we really stand, really, at the very base of this massive, massive growth curve where everybody is trying to get more augmented reality experiences. To do that, you need a 3D model.

I want to ask you about, you mentioned there about the company and all that. I'll ask some questions about that in a little bit, but I want to just click on something that Reza pointed out, maybe get some comments from both of you on when you talk about the return rate and the one thing about Amazon, they've got another complete different business, which is handling returns from people. Because when people can't see something or can't deal something or see how something looks, you get a lot of let's buy 3 and return the 2 we don't like. And so I'm guessing that what you're saying is by saving, by producing these type of 3D models and using the artificial intelligence, in essence, is saving money because it's allowing for less returns.

Yes, yes. It's about a 40% reduction in returns.

That's a huge number, Evan, 40% in a company like Amazon.

It is huge. And when you say huge, it's hundreds of billions annually in returns. It's a big problem for Amazon. And the 3D model -- and there's a reason why they're investing. You could talk to Reza. I mean he speaks to Amazon directly. They are investing heavily in 3D models and this whole 3D model ecosystem because it's, like you said, Steve, going to save them money. And so when you think about a company that has $1 trillion, $1.5 trillion market cap, and you think about them investing, they're only doing it because there are billions at stake. The big tech companies don't move. They do not invest if there aren't billions worth of upside. Why? Because when you have a $1 trillion market cap, millions do not move the needle. Billions move the needle. So they're thinking that this is a $1 billion-plus opportunity for them to make money. And so that's why they're supporting companies like NexTech so that we can help them to achieve their goal. And Reza can maybe even expand on that.

Yes, Reza, let's talk to you a bit about that because even Evan is talking about some numbers here, but even a $10 million spend by Amazon could save them -- it could save them $1 billion, so to speak. So is that where it's coming from Reza?

Yes. when you're looking at it, you say, Amazon, and as I said, there are a lot of e-commerce behind Amazon as well. And one of the key points for Amazon taking over the market, I don't know if you remember it is, these are the facts and everybody knows about that, how easy they were on returns. They were not thinking about sales, they were not thinking about gross profit. They were telling the customers, since you are the prime customers, you can return it. These are the days, packaging, everything ready to go. Because they wanted to make it easier for customers to return their products so they could take over the market. Rather than retailers, you walk in, the first thing you do, you walk into the store and you see a return counter. Because they want to take care of the return, they bring people into to save the sales. But Amazon took it to the next level. They said, okay, since we don't have any brick-and-mortar, they're going to come online, they're going to purchase something. They don't like it. We want to make it very easy for them to return. Now let's go figure out what is happening with the return and why customers are returning. That's where the 3D model comes in. That's where your space comes in. As simple as it gets, you purchase a sofa chair, table, coffee table, you want to see if it fits in your house. You want to see if it fits in your kitchen. Now whether you use augmented reality and so on, but you want to see the 3D modeling of that particular items with the highest dimensions and everything. That gives you more, as Evan mentioned, the customer's journey. It makes it easier for customers to shop. It's like customers is walking to the store and touch it, touch the product. As hard as it is, appliances, they have the highest return percentage overall in retail.

Really? Wow, I didn't know that.

The reason is when they're bringing it into the house and then it doesn't fit, they have to return it back. Remember, there are a lot of labors. Now I'm talking about...

Now I know why we have the washing machine in the kitchen.

Yes, yes. I'm talking about the dollar amount of the return. Those products or average products in appliances about $2,000 to $2,500, rather than a charger for phone, which is $1.99. I'm talking about the dollar amount. So when you save money on the return, as Evan mentioned, 40%, these are the numbers which is already in the e-commerce statistics. You can see it, if you save it, you're already saving the money for the margin for the company and profitability of the company. But right now, with the 3D modeling for appliances, out of the 50,000 models that we have, many of them are refrigerators and washer dryer, you can open them. You can see it.

Reza, let's pivot the conversation from our appliances and all to, I know you talked to Amazon the most, like I really don't talk to them that much. Is Amazon -- and I think this is just important to kind of talk to our investor base. Is Amazon bullish on the 3D modeling business? Are they -- like what is their -- how are they posturing when you're talking to them, Reza?

As you know, when Amazon -- everybody went through some sort of resizing their company this last few quarters that we've had. Many big companies they went there resizing or basically shrinking their department. But I can tell you this much right now that Amazon, even though it's well-known, written that they have done some stuff that 3D model department has not been touched. And what they're doing is they're even investing more on that category. Now let me emphasize more on the Amazon and Seller Central. I know we've been talking about Seller Central and same question keeps coming on when are you going to go to Seller Central. You haven't gone there yet or what is Amazon doing?

Q3 is what I'm predicting. I'm still on record for that.

Yes. But you know what, it's good that we are predicting because we are at the mercy of them to bring us in, but guess what? Who else is in? When you're talking about the actual 3D modelers, who else is in? It's all internal. It's all manual. We are in. We've been in since last year. I'm doing it manually. For the people that are not educated enough to understand exactly what the process is, I tell you this much. The process is a long process. We have to go through many steps just to get one product on Amazon site manually. Now once Seller Central opens, it's automation by us. We're going to take over A to Z. Now Evan mentioned Q3. But I can tell you this much right now. Even Q3 opens and we go to Seller Central, end of Q3, we go to the seller central. That doesn't mean we are not going to receive any more 3D model inquiries from Amazon. We still have to do the factory. Amazon still expect us to do it. We increased our production with Amazon 67% for the past few months. Now we are at the position that we're thinking, okay, they're going to open Seller Central for us. What are we going to do then? Or is it just going to be a Seller Central with the Amazon's customer? Amazon says, "Guess what, we are going to bring it to Seller Central, but don't think we're not going to have our monthly, weekly projection for 3D models." So we are talking about the massive production here.

Yes. Let's put a finer point on that. So right now, Amazon Corporate is buying 3D models from NexTech on a monthly basis. And that's the business we've been talking about. That's the 50,000 models. That's the growth. That's Q2, Q3, Q4. Seller Central represents an entirely new engine of growth for us, entirely new, is not going to eliminate what Amazon Corporate is buying. It's going to be added to what Amazon Corporate is buying. And what we're being told and, Reza, you could back me up on this, that Seller Central is a much, much bigger number than the number that we're getting out of corporate. That there's a significant, significant amount of 3D models that are sitting on the sideline. The demand is just sitting there waiting. We are the supplier, but there's also the demand on the other side of the fence, waiting for Amazon to open up Seller Central. And as Reza was saying, let's be clear about what opening up Seller Central means. Today, we are able to manually bring 3D models onto seller-central. Seller Central is a portal where all of the merchants go. It's open today, but you can't bring 3D models in. You could bring 2D photos in, but you can't bring 3D models. So Seller Central is open today. We are working behind the scenes with some select customers of ours to bring their 3D models manually. Through Seller Central, that's the portal you've got to go through to bring anything on to Amazon. But as Reza was explaining, it takes weeks. It takes weeks. As opposed to when it's automated, which is what we keep on talking about the automated -- when Seller Central opens in the real sense of the word, it really means that we, at NexTech, will be able to autonomously and automatically load 3D models onto the Amazon Seller Central platform, and it's not going to be manual. And so it's going to be the equivalent of pushing a button. It's going to go very, very quickly. And that's going to increase our sales. Obviously, we expect a significant jump in business from that event happening. And again, I'm predicting Q3. What are you predicting Reza?

Well, I -- again, based upon my conversation with Amazon, I always want to be conservative. And they did mention about Q3 for us, I'm saying Q3 link into Q4 in the first month of the Q4. But overall, it's something that we have to be ready.

Hold on a second. So let's just talk about that for a second. This is a big event. This is a watershed moment we're talking about. Let's be clear, this would be like the equivalent of a SpaceX rocket lift-off, okay? It's like that. In my view, that's how I look at it. So we're in Q3, August is the second month of Q3. So it's either August or September, in my opinion. And from Reza's opinion, he's saying, it could be August, September, it might be November. You said it could bleed into November. Okay, either way. Let's do the math. It's either 6 weeks, roughly, if you're going according to Evan's prediction. Or it's 10 weeks within that 10-week period. So the rocket launch in our opinion, and we do talk to Amazon, so it's not based on air, is likely to happen either in the next 6 or 10 weeks. And this is very important because for our company to be able to go cash-flow positive, which is something that we talk about a lot, this has to happen. When it does happen, if it does happen in the next couple of weeks, we're only talking 6 to 10 weeks, it does set the stage for NexTech achieving that goal. Because all of a sudden, we now have a whole another stream of revenue coming through the door, and that's what's needed, right? You bring in -- you make $0.50 or $0.70 whatever it is, and that goes to the bottom line. And that's really what we're positioning for.

So Evan, what makes Amazon so different from others that have potentially tried to really incorporate 3D modeling and all that? Is it -- is what you're talking about with Seller Central light years ahead of what other people have tried. And is that what the difference is? Or is it that Amazon is just spending the -- really the necessary dollars to make it happen? Is that -- or is that a combination of all of it?

I think it's both. They're light years ahead. They're a tech company, let's be clear. The other e-commerce companies are not tech companies. They got into e-commerce but they started out with brick-and-mortar, right? So that's -- it's not really a comparable. Amazon moves the needle. They are 70% of the market. If you add up everybody else combined, they're only 30%. So Amazon towers over the e-comm market. They move the needle. So we don't even talk about the fact that when Amazon opened Seller Central, it's a huge, huge shot across the bow for all the other e-commerce players. There's 30% of the market out there that we're talking about. They all go back on their heels and say, "Wait a minute. We better catch up, we need to get into this 3D modeling game." And like we said earlier on your show, think about this. We just passed 50,000. Walmart has been the biggest retail operation on the planet for decades. They just passed 7,000. And so if you look at that, we've actually exploded past Walmart and what they're capable of, what they're bringing to their platform. Amazon's way past 50,000, right, because they've been at this for years. So there's going to be this game of catch-up, is my point. That all the other players are going to -- their head is going to spin. And they're going to say to themselves because if you want to be competitive in this world, you have no choice, but to compete, you can't just sit on your hands, you'll go out of business. So all these other players are going to say, "We need 3D models." So it's not just going to be a demand imbalance when Amazon leans in with Seller Central. But there's going to be a demand imbalance, meaning there's going to be a lot more demand in the market from all these other 30%. The 30% of the market, they're all going to be looking and clamoring for 3D models. So we think that we're about to enter the sweet spot for our business, where the demand is going to ratchet up very, very quickly for both Amazon and outside of Amazon. But to be honest with you, Steve, Amazon alone is going to keep us very, very busy.

Yes. A couple of things. I just want to talk on process. But Evan, you mentioned Walmart and there's -- someone mentioned just really quickly here that it doesn't mean you don't want to supply in Walmart with anything, but you're not saying that you're just suggesting that they're trying to add stuff to their website. And a lot of these big companies go, "Hey, how are you doing it?"

We're not -- I'm suggesting a couple of things. All these big players, they're way behind. They are miles and miles and miles behind Amazon. They're mile -- they are so far back, they're never going to be able to catch up is what I'm saying, is that there's going to be this urgent need for Walmart and everybody else in the e-comm ecosystem to get 3D models to compete with the 1,000-pound gorilla Amazon. The problem is they're so far behind. Good luck, because Amazon is going to be buying up all the production. Think about it. When they open up Seller Central, if we start getting thousands and thousands of 3D model requests, if Walmart wants 3D models from us, it's going to be -- Reza's going to tell them -- what are you going to tell them Reza?

You've got to wait in the line. Get in line, right? You've got to wait in line.

And that's what I'm getting at. Is that -- yes.

Okay. I just want to make sure we clarify that.

But one thing to add on that, on Walmart. As I said earlier or in the last meeting, when you are spending money for 3D model, you have 2 choices: spend from your own pocket as a company, which Amazon does; or if you want to go ahead and have the manufacturers or the vendors that you're purchasing the product from, they spend for it. So it's just a matter of where the dollar comes from. And I'm not surprised that Walmart is having 7,000 because they don't want to pay it from their own pocket. They would like their partners, their vendors, to pay the extra money for the 3D modeling because that will calculate it in the cost of their product. It's all about costs. It's all about profitability. But understanding what Amazon did, that they saw the fruit of 3D modeling. It saves their return by 40%. And it brings more interaction with your customers on site. Now Seller Central is all Amazon's customers. We, at NexTech, we are positioned to take care of manufacturer with 3D modeling, Amazon and even Amazon's customer. Because remember, Amazon has its own inquiries for 3D model. We're not going to ignore that. We're going to keep on doing that. But the Amazon's customers are very important to us. Now Amazon's customers are trusting in us to give their product to put it in their -- to the real estate of Amazon. The high margin dollar that can be generated for their productivity and P&L, for their reporting. Because if they go to the Seller Central with Amazon and they put their product there based upon the traffic that Amazon has, they're going to sell their product. But they can sell it to NexTech 3D modeling. So we are positioned for everyone. We are positioned for manufacturers. We are positioned for brick-and-mortar retailers. We are positioned with Amazon itself to take on Amazon right now and we are positioned to take care the customers because Amazon is going to give us the full right in their Seller Central to approve those products to meet Amazon's expectation with our QA process, without going through them, posted on Amazon Seller Central. And we want to make those customers happy.

Reza, I want to ask you just about this, about process because I think this is important for people understand it. And I've been -- because someone asked an interesting question. When is it going to be automatic rather than manual? You sort of addressed that, but I want to expand on the question just a little bit. So just so I understand, and I think if I can understand, most layman people can understand. And so the process would be when Seller Central opens up, there'll be hundreds of thousands of companies, millions, whatever it is, that will be putting their products on that particular page. So when someone would go in there, if I'm Steve's company and I go into there to get on Seller Central, I would have options in order to make it. Is that how it works and then say, do you want 3D models? Do you want to like -- are there -- how would a company who goes on Seller Central know about 3D models?

It's a tedious work. You've got to go through many steps, many stages to be approved by Amazon. Just to show you, remember, it's Amazon's reputation.

Absolutely.

They do not bring everybody to come to the Seller Central. So what the customer they do is they -- Amazon realized during their interaction with all of these customers and some got denied, some got approved. They said, okay, we need companies that either they have to increase their resources to do all those quality control, making sure all those products meet their specs and everything, and they're ready to go on the Amazon site, or they have to go ahead and outsource it. And that's where we come in. So they decided that they are going to have open up the Seller Central for selected 3D model supplier, which we are one of them as preferred one to go ahead and take over the customers' inquiries. So Amazon will not be part of it. Now when the customer comes to us, wants to do 3D modeling on Amazon side. They don't need to know anything else. All they have to tell us is, "I want to be on the Amazon." Okay. You don't need to fill out any application. You don't need to have a lot of information to be approved. Same thing as you, as a customer, coming to me, wants to do a 3D model on your website. I can do it for you within 3 to 4 days and put it on the website with the augmented reality experience. Now you want to go on the Amazon site. Okay. Give me your models, here's the price. They are approved, I'll post it on Amazon. Customer is not part of it. We are. So it's just very, very...

Yes. I think it's an important what Reza is just touching on, he said that Amazon is going to take a step back. NexTech is going to take a step forward. We are going to deal with the Amazon customer directly. They're going to pay us directly. That's very different than today. Today, we deal with Amazon directly. Amazon is going to continue to deal with us, but they're going to take a step back when it comes to Seller Central and say, "Okay, guys, you're up, talk to our customers." That's what we've been doing. The difference between us and everybody else that Amazon works with is that we've been dealing with customers now for 5 years. And so we're very, very sophisticated when it comes to our customer interaction and customer satisfaction. And so I think that gives us a tremendous leg up. We also have the ability to bring customers outside of Amazon's ecosystem on to Amazon. So we're going to be making money not just from Amazon's customers, which there's 10 million of them. But from -- or not the customers, but the merchants, which are going to be our customers. But also from outside of Amazon as well. So back to Walmart real quick because I think it's an important distinction that Reza was touching on. Walmart essentially is trying to jump-start their version of Seller Central with their merchants by saying, "Okay, buy the models and we'll put them on our site." But the difference, I think, there, and there is a big distinction is that they're not letting the 3D model suppliers deal directly with the merchants. With Amazon, it's going to be a direct interaction with the merchants. With Walmart, they're not doing that. They have basically their own Walmart team dealing with the 3D modelers. And so there's this middleman, which I think creates a lot of friction, a lot of confusion and probably slows down the whole process to a crawl. We know this because we deal with all the questions back and forth. Imagine you're a middleman and there's a lot of back-and-forth questions going through you. How much time? How much delay that causes in production? It's massive.

And Evan, how much of your patent protection will that help you in the future as well? Because I know that we've talked about in the past, all your -- the patents that you've applied for, for processes that happen. So does that provide you with an advantage as well?

So we're building -- our whole tech stack is based on automation. Everything we do, when Reza comes up with the process. Remember, we are a fully formed technology company. So what does that mean? That means behind me, behind Reza we have AI, a whole team of AI experts. And they basically create algorithms to automate whatever it is we come up with. So when Reza comes up with the process, we flip that to our AI guys. They come up with an algorithm. And then our tech team builds that whole piece into an automation workflow so that everything happens at light speed. There's no people in the process. There's no friction. Everything just happens very, very quickly. And that is our moat. And that is extremely, extremely valuable. Some of it is patented, some of it is patent pending. Some of it's just proprietary workflows. But these are very sophisticated workflows. And when you're talking about scaling for an Amazon, this is top of the mountain. There's no bigger game. There's no bigger volume production that we're going to do beyond Amazon from where I'm sitting. And so our tech is purpose-built to be able to satisfy massive quantities of requests for 3D models.

Okay. We just have a few more minutes here. Reza, some final thoughts from you on where you're at and where things are going? It sounds like...

Yes, I feel very comfortable, as I say, comfortable and very optimistic at where we are positioned as a company in the 3D model world. I know we talked about Amazon. There are a lot of e-commerce behind it as well. And going to the 2024, I am very excited to get those challenges that are coming through our pipeline to create 3D models. So I have to keep on thinking how is our factory is going to be working as far as keeping Amazon happy. But there are other customers coming through including Amazon's customers, merchants that I have to take care of, we have to take care of. The generative AI is an add-on for us. And I tell you this much right now, we are using that on a daily basis. And it keeps on improving, no difference than Apple came up with iPhone 1, 2007. Where are we now, iPhone 13. I mean every year, there is another version of iPhone because they are enhancing. They're scanning up the applications and the performance of the product. Our AI is improving on a daily basis. And we have a process. We are -- because the process comes to us because challenges comes to us, we need to come up with a solution right away. And our AI team that I'm directly involved with, they keep doing the quoting and this fit-out next day. This is how the process is going to be. But our generative AI is the key factor for us to have a quality 3D model and deliver them in a timely manner. And that -- you cannot do that alone. Yes, there is a human touch, but the generative AI definitely expedite our process. So overall, as a company, NexTech, we are in the best position we can ever be. And again, we are open to Seller Central, we keep talking about that Amazon and other e-commerce. I am very, very excited to see the -- going through the Q3, the Q4 is going to be a holiday basically for all the retailers that they're going to enjoy those big sales. And I'm sure we're going to be part of it. I'm sure we're going to be part of that party. They're going to invite us to the party, and I'm sure there's going to be a lot of work. Usually, a lot of manufacturers or companies that are off during Thanksgiving and Christmas. It seems like we are going to be very busy in the factory because, as I said, there is a big party coming up. So we are very excited. And I can't wait to go through the Q3 and Q4 because, again, 2024 is very promising for us. And the investment that we put in Amazon and the investment that our partners, they put in us, is going to pay off sooner or later.

All right, Reza. Good to see you again. Thank you so much for being a part of this and we'll talk soon, okay?

Great. Thank you.

All right. Reza Davariar, he's the COO of NexTech3D.ai, and thank you very much, Reza. Evan, if I'd just wrap up a couple of quick things. Obviously, you get lots of questions for you, mostly just about share price and NASDAQ and all that kind of stuff. And I know we talked a bit about that last week. And I'm not going to ask you about the share price because I don't think we do that here as we predictions are not something I'm going to be a part of because I don't think it's a good idea because the market is what the market is. But you're doing things to put your company, I would feel, in a position where you would bring in new investors. And I think you've had a plan all along, and it's continuing, I'm guessing.

Yes. Look, our stock, in my opinion, is severely undervalued, in large part due to the fact that we just had to do another financing to cash up before this massive surge in volume and demand. So we are announcing 50,000 3D models produced to date. We're thrilled that we achieved that milestone. But it really is just the beginning of this journey still. And so our generative AI is helping us to achieve greater and greater volumes. Our customer satisfaction is continuing to keep us in the game where they keep coming back for more and more 3D models. Amazon, obviously, is a key customer for us. And if you think about where we're at in our growth trajectory, I think we're at on the launching pad just like a SpaceX rocket from Elon Musk's company, where in Q3, we're going to show some significant growth. I do believe Seller Central is going to open up in Q3. That sets the stage for an explosive Q4, which is what I've been predicting since the beginning of the year. And then as we roll into 2024, I think there's going to be a massive amount of FoMo in the 3D modeling market. I think our stock is going to start to make a move as we produce these results at this point. It does feel like the stock is in a show-me mode. I think the stock being down where it is, just speaking to that. I'm the single largest shareholder. I own 11 million shares. I bought 250,000 on the last financing at CAD 0.42. And in my view, this is going to be the lowest point on the stock, in my view, based on the projections that we put out, the demand that's starting to rise from Amazon. I mean if you think about investing, you want to invest in a growing business. If you look at the numbers that we have preannounced for Q2, up 155%, that is rapid growth. If you look at what we're projecting for Q3, up 200%, even faster growth. I'm not going to project Q4 until after we're done in Q3. But I'm expecting that a Seller Central opens up. We could be looking at an even bigger number. And that's what you -- that's why I'm here. That's why Reza is here. That's why our whole team is here, is we're here for the growth. The hypergrowth mode, in my view, has arrived. And that's why today's news really is just the shot across the bow. It's just an indication to our investors that, hey, it's here.

All right. And we're here to allow a connection between yourself, the company and the investing community as well. So Evan, thank you so much. Good to see you again, and we'll talk in the near future, okay?

Thanks, Steve.

All right. There's Evan Gappelberg, the CEO, Nextech3D.ai. And again, thank you for all of your input. Thank you for all your questions. I appreciate that. We'll be doing many more of these as the weeks roll on, and we'd be happy to have you along as we do all of them and bring your great questions as well. I'm Steve Darling in Vancouver with Proactive, we'll see you soon.