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

Hello, and welcome to this Proactive live stream broadcast with Nextech3D.AI. I'm very pleased to welcome the company's CEO, Evan Gappelberg; and also the Head of Products Operations, Hareesh Achi, who are joining us today to take us through the latest tech developments that are positioning the company for the future. If you'd like to join and make sure to use the chat feature to ask your questions, we'll pose them to management today. So without further ado, here is Evan Gappelberg. Evan, great to have you with us today.

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

So Evan, you're really on the cusp of something massive here. Take us through what the next steps are for Nextech3D.AI as you head into 2024?

Sure. So we've invested about $25 million over the past 2-years into developing our AI, into developing our 3D modeling capabilities. And we really are on the cusp of a breakthrough, not just with our AI, but also with Amazon opening up Seller Central, which is a key piece to our business. I don't know that our investors fully understand how significant an opportunity that is for them. We see it as a massive, massive upside and a really, really valid reason for investing in Nextech. And from my standpoint, you always want to have a big catalyst. The AI is the engine that's driving our productivity, meaning without AI, we wouldn't be able to decrease our cost of production or increase our productivity, the number of 3D models that we're able to produce. But with AI, we are able to do that. We're able to use AI, internally create AI tools to allow us to produce more 3D models at lower cost. And if you think about that, when you think about Amazon, 1 plus 1 equals 3 here, where the AI plus Amazon Seller Central opening up is going to equal exponential growth in our 3D modeling business. We've been selling Amazon 3D models for the past year. It's been a very, very complex equation working with Amazon, they are one of the biggest tech companies. They're like in the top 3. It's Amazon, Google, Microsoft, I mean these are $1 trillion technology companies, and they require a very, very high level of expertise. Everything has to be not 98%, not 99%, not 99.9%. Everything has to be 100% if you want to do business with Amazon. So for the past year, we have been trained by Amazon and we are now locked in as one of their 3D model suppliers. There's only a handful of companies that have made it through the past year. A number of companies I've been told have tapped out. We did not. We are still going strong with Amazon. And what that means is that the reward is right around the corner, meaning 2024 Q1 is when I believe all of our shareholders are going to be rewarded for their patients and poise. While we go through bear market, which I think we all can acknowledge has been quite brutal. But the reward is still very, very real, in my opinion. And when I look at our 2024 opportunities, it's quite massive, it's not just 2024, just to be clear, it's really the beginning of 2024, and it's going to continue for many years because Seller Central is where 10 million merchants login every day to sell their products on Amazon. And we're talking about the same customers that we've been selling 3D models to outside of Amazon, 70%, 80% of their business actually happens on the Amazon platform. And so if you think about that, it's this massive, massive amount of demand that's been sidelined. I'd say 80% of the demand for the 3D models that we make lives within Amazon. 80%, we've been selling outside of the Amazon ecosystem and obviously, we also sell to Amazon corporate. But the real upside here is when we start selling inside the Amazon ecosystem to all the merchants, all of the merchants that currently are not in a market are going to be purchasing 3D models from Nextech or one of Amazon's other suppliers in 2024. And I think this is literally just a few weeks away, I know I thought it was going to happen Q3 and I was wrong it didn't happen in Q3, but it is happening. And so we could even talk some more about that, Hareesh Achi who actually just came back from India. He met with Amazon in India, our new offices in Hyderabad are 15-minutes away from the Amazon office where all the executives that we deal with on a daily basis and that we supply the 3D models to, they're all in Hyderabad and Hareesh was there. They came into our office, we met with them in person and Hareesh can tell you, they've essentially promised us Q1, Seller Central and some other -- there's some other exciting developments that Hareesh could share as well.

Okay. Well, let's bring Hareesh in here because Hareesh, you joined in September. Evan was talking about the big technology companies. You've worked with a number of them. So you have worked previously with Meta, also with Microsoft. How is the Next acquisition for the massive scale, will you guys need next year when Central comes active?

Yes. Thanks, team for having me here. And yes, as Evan shared here, right, AI, right, how we are thinking and getting ourselves ready for the future or getting into this 2024, primarily, we are based on our technology, which is our AI that we have built in-house that we have, which enables us to be more productive, more efficient in our operations. And as well as, obviously, as Evan mentioned earlier as well, I've been in Hyderabad. So in terms of our cost structure as well, building our office and our majority of our resourcing through Hyderabad in India. It helps us, be both productive and profitable on both ends, right? So we use our AI technology, which we have now to design our 3D models faster. When I say faster, we have already this year built about 35,000 -- 50,000 of 3D models within our system. We also have other million of mesh libraries that are available to us. So we use those 2 combinations to build our AI technology that helps us in a new 2D picture that we get, we can quickly scan through our massive library of [indiscernible] 3D models that we have and present it quickly, like, hey, here's a similar one that we have done, right? So that's what the AI does for us, and that's where the productivity and the efficiency is creating enables us. So to your question, it's all about that productivity and efficiency through our technology and the AI that we are building and being ready for 2024.

Yes, Hareesh, I just want to put a finer point on that. So if you think about 3D modeling, there's 2 parts to a 3D model. One is what's called the mesh that's essentially the wire frame and the other piece is the texture, the skin that goes on top of the mesh. And those 2 things create the 3D model. And so we recently have been given access to a library of millions of 3D models that have been created for Amazon by Amazon. And now we have access to be able to pull a 3D model that's similar to the new 3D model that we're trying to make. And what that does is that puts us on the 50-yard line. It puts us on -- it puts us into the 3D model where we're not starting from scratch. And everything, again, is about productivity. If you think of ChatGPT and you think of how it works. It uses data, it analyzes language and just pulls from that to create content. And so if you think about what we're doing, we're going into the data, meaning mesh. The mesh library is our data. And we're pulling that forward and creating a new 3D model from that using existing mesh and then using our AI technology to texture that and that is going to be paying big dividends in 2024. We're just getting that library. As Hareesh was saying, we've produced over 60,000 3D models ourselves, but that's a relatively small data set. And that's just because it takes time to produce 3D models. Amazon themselves has been at this for 5 years and they have a massive amount of 3D models already and now we have access to that. So it's given us an enormous, enormous boost so that our AI has more data, which makes it much, much more potent when it comes to producing results for Nextech.

Well, I'm bringing a viewer question here because the viewer asks, well, Amazon is sharing the 3D model database with you, are they sharing to there are other preferred sellers as well?

So I would say they probably are. I don't think that it's exclusive to us. But it's kind of like giving somebody a bat and the ball and saying, "All right, go out and play with it. I mean they don't make you an all-star just because they give you the bat and the ball". So yes, there are others. I'm sure that they're offering it to, but we believe that our team and our tech and our process is the best in the business.

Okay. I mean -- would you agree with that, Hareesh. I mean, is there something that sets Nextech apart when it comes to 3D modeling?

Yes. I think I agree with what Evan has said, it's not -- it's how you use it, right? I think the way I see it as being a product person, the one thing is just getting access to it. But how we are using it is what I feel Nextech is unique in that way. We are not just using that database or that -- our portfolio or the measures that we are getting just to look at it and copy paste. We are building our tech based on that. We are using that to increase our AI operations, AI, how we build our AI and the algorithm on it. So it's going, that's the unique differentiator, I would say, that is unique to Nextech and how we are going to get -- everyone has access and how each individual is using it, it differs, and I feel like we are using it a lot more effectively and efficiently.

Also, the fact that we have toggle for texturing, it gives us an end-to-end solution that, again, our competitors don't have. So -- when you think about what we have, it's now this parts-based library. And by the way, we filed a patent for this technology. So that's also a competitive edge potentially. But once the 3D model is actually created using this mesh, we then have the ability to put the skin on it or texture it using Toggle, which is an AI platform that we've developed, and there will be a licensing deal between essentially the models we're creating for Amazon and Toggle. And we see a future where when Seller Central opens, a lot of this is going to be automated, where we'll be able to offer people that either have their own 3D models already or people that want us to make 3D models for them to be able to charge them to bring their 3D models on to Amazon's platform almost as a toll taker. Just because we are a certified partner after going through a year of being trained by Amazon, we now are going to be getting a badge that allows us to bring 3D models on to Amazon's platform, whether we created them or not, and we're able to charge whatever we want. It literally is up to us if we want to charge $10 or $110 for this service. And so it's a massive, massive, massive opportunity that has yet to show up in our numbers yet.

How competitive do you expect it to be though, Evan?

So, not very competitive at all. I mean you're talking about -- I mean, Hareesh can even lend a little bit of color to this, but because Amazon was telling Hareesh when he was there, how massive the Seller Central is. I don't know that people can actually understand how big it is. I mean, 10 million people, that's like the population of the state of New York is like 8 million people. I think Canada only has 30 million people across all of Canada, right, the whole country. It's like 1/3 of California. It's a massive number of people. Now, when you talk about 10 million people, that's a number of merchants. That's 300 million models. That's the entire population of the United States of America. So the numbers are massive. They're massive. And so when you think about that, think about a dozen, maybe 2 dozen people, companies like Nextech that actually control which models get onto the Amazon platform. Like I said, it's like a toll taker. but we obviously have expertise. It's not like we're sitting there with their handout, just taking a toll. We actually have a very sophisticated process and very sophisticated technology that we've developed with Amazon, some of it Amazon has developed and actually give it to us so that we can do this for them as a service. And so I don't know any small-cap companies with market caps like hours, $15 million, that supply Amazon, any kind of service, I just don't -- I haven't seen it. It's always going to be these big $1 billion companies that are supplying Amazon with some kind of a service. We've done the pioneering work. This is the early days of a next generation of technology, meaning 3D models that are going to replace 2D images. And I believe that the companies that are at the forefront are going to be the next billion-dollar companies and that the fact that we're getting in early and the fact that we've gotten in early I think, again, is very, very valuable to us as a company and our shareholders should be rallying around this.

And of course, that speaks to the early mover advantage that you do have. And before you became a preferred supplier to Amazon, Evan, of course, you have other customers as well. And that goes to the next viewer question that we have, Are you looking at other sources of 3D modeling business outside of Amazon? And of course, we know that Kohl's and PNG are also customers of yours.

Yes. I mean we're constantly signing up other customers. We just had a contract go out for renewal, actually, another $50,000 worth of 3D models. There was another contract. I mean, the business keeps on humming along. We get a lot of renewals. We get a lot of reorders. We get new customers coming in, but I want to reiterate, 80% of the business is on Amazon. It's on that platform. And right now, it's a walled garden. You cannot get in. If you want -- you can't get in. Amazon has put barbed wire around the moat there's a moat, there's a tar pit. You cannot get into the Amazon Seller Central with 3D models unless a company like Nextech or one of the other companies bring you on to Seller Central. And so that is extraordinarily valuable to our shareholders, for our shareholders, for our business. And to be honest, Steve, there are companies out there that I am talking to, that are sophisticated, that see the value. And they're actually talking about taking a stake in Nextech, acquiring a stake or even a big position. And so the reason is, they understand the value. These are sophisticated, sophisticated investors. And so the typical retail investor unfortunately, has been very shortsighted in terms of the market, you have to be in this for the long haul. This isn't about a quarter. This is about a mega-trend. And if you believe in the trend and the trend is your friend, that 3D models are going to replace 2D photos, which I wholeheartedly believe is happening. And it's not just me, it's Amazon and all these other customers that we supply 3D models to, they're seeing the ROI. They're seeing an uptick in sales. They're seeing -- Amazon says it's roughly 9% increase in sales that you -- just by having the 3D model, that is driving the demand. And ultimately, when you think about, again, the fact that 80% of the market is off the market and that we are going to be one of the few companies that are going to be supplying Amazon with 3D models. It's quite exciting for me. And I think Hareesh is equally as excited as he's on the front line working with Amazon and building the AI.

Right. Yes. Just to add there. I think yes, I'm equally, as Evan says, or even if not more excited on this, right? I think as Evan said, it's like it's how we are building for the future, how we are building a scalable operations. So that's where -- the question on outside, yes, we have several few other customers as well that we engage with. And it's -- that's how I am envisioning the technology in the company, right? It's not -- it's going to be scalable. It's going to be applicable across, what Evan touched a little bit on Toggle as well. So it's building that way across, and that's what makes me excited in this journey. And I think that's where we are very -- in the cusp of that new [indiscernible] marketing or [indiscernible] all the 3D that's going to happen in the future. And we are going to be enabling that. And that's through our AI, that through our operations, that's through our technology that we have.

Hareesh, you previously described Hyderabad as the new Silicon Valley of India perhaps. And I suppose the technology is changing. So from what Evan has described, even in the last year, it's advanced considerably. So how do you manage to continue to keep up with technological developments while you're at the same time, positioning yourself for Seller Central?

Yes. I think it's together, I would say, right? It's not about catching up or keeping up with the technology development, is in built into our preparation or getting ready or having our operations or technology built ready for that. So it's together. So if we are levering, when I talk about AI, it's like, obviously, we are leveraging the latest and the greatest technology advancements that are happening in the AI. We are building algorithms using some of those capabilities as well. So it's -- to your question, Steve, that is together. We are obviously constantly evaluating, constantly assessing what technology advancements are in the marketplace or what's coming up in the marketplace and evaluating how we can implement that within our product ops. And that's how we are constantly in the marketplace that we're giving the technology and understanding the technology. And bringing a [indiscernible] our staff is as well across our company, right? So we have some of the best talent in building some of these AI capabilities and we are using those resources as well to be upfront and be ready in this new technology evolution.

Maybe Hareesh, give us a bit of color on the India operation in Hyderabad since you took over as Head of Product Operations in September and opened the office in India? Have you managed to find the talent that you need to man those operations?

Yes, we did, and we're excited to give an update on that. So yes, we are -- started opened the office last month. I just came back this past weekend from Hyderabad. We opened the office. We have a team in Hyderabad already there. We already had teams available in India. We still have teams across India, obviously though remote, and things. In Hyderabad, we have bring that all together and with the office space. And we have the teams in India. We are also hiring. We got a lot of good talent coming in into the organization there. So it's going well. We are growing as well, and it's running the back-end operations for us. And I'm super proud that the team here and the work we are getting done and as well as it's showing up in our overall operations and how we are improving and increasing productivity across as well. Just one month of operations so far, and we already are seeing good progress in terms of our overall efficiencies in our product development from Hyderabad.

And Evan, there's a couple of questions. One viewer asks is Seller Central a guarantee? Another asked is it 100% going to happen? And then third one asked should we expect Amazon's 2024 corporate orders to be announced before the end of the year?

Yes. So in terms of -- is it a guarantee? I'm going to let Hareesh tell you his interpretation of Amazon's conversation with him about Seller Central.

So just to give some context there on that, right? So Seller Central the way, I think if you think of -- I mean, some of you may be familiar with Amazon Seller Central, is where all the sellers go and publish their products that gets showed up on Amazon site. Being part of Seller Central obviously opens up all the marketplace for us, and we enable all the sellers on the marketplace there to have 3D models. So how it works is obviously, through connecting through a platform that Amazon has and which is what we are now have access to that platform. And we -- that's what is the world that we are going through [indiscernible] is able to test all the platform capabilities, use the platform capabilities, -- and we also are operating efficiently and effectively within that platform. So once I think we are almost -- we are done. I think we are getting closure on that one. And that's just basically it's a gateway. So when Evan says it's a toll pool or are collecting toll kind of thing. That's what I see that, right? It's basically we are on the platform. It connects into the Seller Central, and we have it open for us. So is it a guarantee? Where I see how my conversations have gone so far, I think it's about us performing which we are doing there. And just as I said, validating the platform with our -- connecting with our platform capabilities. and closing that out. And I think we are targeting it to be in Q1.

Yes. So in terms of -- I can tell Hareesh is little more comfortable saying the word guarantee. So here's the bottom line, okay? They've been training us for a year on their platform. We are connected, connected to their platform. They have told us that they're putting us into Seller Central. They've told us that we're going to be getting a press release, with our name in it. I mean -- does that mean that they're going to 100% deliver that it's a guarantee? I would put it at 99% personally because there's no reason for them not to but nothing is a guarantee in this world, but it's a very, very high probability. As of right now, all lights are green. I mean they're telling us. Yes, you're going into Seller Central. Yes, you're going to have the access. You're going to be able to bring customers and you're going to be able to hunt inside Amazon for new business. And they're telling us like, hey, we're actually talking to legal right now, Amazon is talking to legal and they're going to send us the "dos and don'ts" Isn't that what they said, Hareesh?

That's correct. Evan to your point, yes, nothing is guaranteed like -- so that's where -- so yes, I'm also confident, it's about like Evan said, 90%, 95%, 99% there. And that's what, I think, yes, we are just finalizing some of those do's and don't, some marketing materials and all those...

Yes, typical stuff. So again, all the lights are green. I once heard a joke about guarantee. If guarantee had a brother, this would be it. Seller Central would be it. So it's like as close as you can get. But from my perspective, look, everything in the stock market, everything in business is about calculated risk. What is my risk reward? And in 2023, let's just talk about the market in general, you had a massive, massive move in interest rates which shifted the risk/reward equation quite dramatically away from small cap and stocks in general because you could get 5% or more in a guaranteed treasury and $1 trillion moved out of the stock market into treasuries. Now everything goes in cycles. So the bet now is shifting and you're seeing that in the market. There's a shift in sentiment. The bet is now that interest rates have peaked, inflation has peaked and the next move in interest rates is down. Is that a guarantee? No, it is not a guarantee. Anything can happen in this world. But it's a very high probability that interest rates have peaked, that the stock market is now moving towards the bull cycle if it's not in it already. And my belief is that 2024 is going to be the return of the bull, and you're going to see small cap stocks spring back to life, including Nextech. And when you look at the valuation of Nextech today, we have roughly a $15 million valuation. If you go back to 2018, when I took Nextech public, we had an $11 million valuation when we had 0 business. This year, we're going to clock in at roughly $5 million in revenue. In 2018, we did like almost nothing. And back then, $11 million today, $15 million, we didn't have Amazon back then either. We didn't have AI back then either. We didn't have Target, Kohl's, Procter & Gamble. We didn't have any -- Hareesh wasn't here. We were like a team of 10 people back then. So night and day company or I should say, companies, night and day in terms of our business and technology, valuation is almost the same. So as I mentioned earlier, we're being approached there's smart people out there, smart money out there. They're looking at Nextech, and they're like, "Hey, are you guys for sale?" And this is at a big premium, by the way, to the current share price. And so I mean, I'm just letting our shareholders know that there is value in the current valuation, and anybody that's missing that, you should think about the conversations we're having with trillion dollar technology company that controls 80% of the market that we are in, and they are essentially saying to us, get ready, we're about to open the door and let you guys hunt on our platform. And that's the catalyst that I believe is going to drive our share price up dramatically, and that's literally right around the corner. And then when you add in the AI, which should be kicking in to high gear in Q1 and you add in the productivity that we're going to get out of our Hyderabad new office in Q1, it all sets the stage for really quite a significant turnaround in our valuation in 2024.

I mean we've had quite a few questions from viewers about NASDAQ, is this going to be the trigger for your NASDAQ listing? What do you think Evan?

Look, NASDAQ is still something that we aspire towards. With our current valuation, it's really on the back burner. There's just no -- we're not qualified at these levels. When we were talking about NASDAQ earlier this year, our valuation was significantly higher -- the application is still in, if the valuation does go back to $50 million or more, then that conversation becomes much, much more relevant. But as of today, -- it's not really a conversation.

Evan, you were mentioning AI and how that's going to take off in the first quarter of next year, explain how this is going to be a game changer for your 3D modeling?

So Hareesh, maybe you -- do you have a demo or are you able to show that the stuff we were looking at the other day? Or you just want to talk to it? Either way is fine.

Yes. Let me -- I can talk about it and let me pull that as well, while I'm talking here. So a couple of things. How is it going to be a game changer question, Steve, that you asked. For me, the way I see it is, it's -- obviously, it's all about how we scale, how we grow and how we are like there is the market -- the addressable market when I look at it, is in the millions. That is more than millions, multi-millions that we have. And what I'm thinking of when I think of AI and how I'm building it, it is where it's tries to enable us for that scalable operations and scalable product on -- let me try to bring something here and show you can some screenshot of how we are thinking of it. Hold on, give me one minute. And also as well, where I think of how it sets us up and how it increases our productivity, it's all about...

It's basically, as Hareesh would say, it's about scale and volume. And so think about it like this. If one human sits at a computer and they're trying to create, let's say, 3D modeling scratch today. They're able to, let's say, make 2 or 3 3D models in a 6- or 8-hour period depending upon their skills. But when you add in the AI component, their productivity can go up by 10x, and that's the thing. I mean, listen, you're paying that person the same amount of money regardless of whether they make 2 models or 20 models. We get paid on the other hand, a significantly more amount of money by delivering 20 -- so let's just say it's $100 per 3D model that we're selling the models at. If we're able to have an artist produce 2 a day, that means that artist is generating $200 per day in revenue. And maybe we're paying that artist, let's just say, $25 or $50 per day. So that's our business. Each artist represents another opportunity for us to produce 3D models. Now if we give the artist some amazing AI tools, where they're able to now produce instead of 2 models, 20 models. Our revenue goes from $200 to $2,000 from that 1, 3D modeler. And they're maybe going to make a bonus and instead of making $25 or $50 a day, hey, maybe they make $100 or $200 a day. I'm talking about in India. Everybody wins. It allows us to scale. It allows them to make more money and it allows us to deliver for a massive, massive number of clients that are looking for 3D models on Amazon. And so our productivity goes up, but also our profits go up. If you follow the math, our profit margins go through the roof when the AI becomes fully functional for these 3D artists. The 3D artists still have to be there. You still need a human. Think of it as a pilot and a copilot. It's kind of that scenario. And you hear Microsoft talking about copilot a lot with AI that the copilot is AI. And so the artist is the pilot and all of a sudden, the copilot instead of only being able to help you a little bit, all of a sudden is able to do significantly more and enhance the pilot productivity. That's really the bottom line with AI across all industries.

I think exactly. I think it's all about productivity. And as you can enhance the productivity then you have more capabilities and then you have more capacity to scale the business. And that's when, as -- Evan talks about the margins and the number starts showing up and it's exponential growth -- so just to give you guys an idea of how -- what -- when I say AI, what I'm thinking. So let me see if this share will work now, can you guys -- Yes. Okay. So you see this -- Now you can see, right? So see this, what I'm showing on the screen how it looks in front of an artist, right? So what it is, is you upload, the left side of the images are the image that someone uploads into the AI tool. And the AI on the right side gives them options on, "Oh, we have all these 3D already in our database -- and would any of these match for you to work or pick it up". So for the artists, almost like you see the top computer desk that you have on the first one there, pretty much matches, let's say, the third one is very closer, the fourth one is very close to what they have as an image. They pick it up and that's it. They already got 80% of the mesh created and then they just go and fine tune it, enhance its side. Black color or...

And Hareesh, I learned on the call because we have calls with our AI team. And I asked them like, oh, so is the 3D model include the stuff on the desk, meaning the monitor rate and it's like, I don't know, a picture or whatever -- and they're like, no. And so like how does that work? And they're like, well, we're creating an algorithm to block out everything but the 3D model that the artist is going to reproduce. And so it goes beyond just like showing, hey, this is a selection. But I mean if you look at this you could see that there's an enormous amount of content that we already have -- and we're now going in and reusing that and you could see how similar a lot of products are. Here's another example.

Exactly. So what Evan talking about, taking off the background, right? So you get a picture of the bed on the left with all the painting on the wall, the night stand and everything. We have AI technology today that just removes the background gives you just the table, right, and has some text, let's say, on the image. We can remove it automatically and put it up. So this enables, right, so that will like a room with the table here, you just get the table that you want to create a 3D of. So this business where how we enhance productivity. And then the next one I want to show you also is we enhance that further, right? So these are all the measures that we have created. And then we have this [ primate ] text that we are showing for each, we are storing it in that way in our database as well, right? So every mesh that we create, it knows, it describes it. The primary item is in this image is the standing desk, which has a computer monitor. The reason why we are doing that, again, this is automated generator through AI, it takes the image. It builds it. We fine tune it. We need to make sure the description is accurate. But the reason we are doing this as well is because an artist can go in and, hey, I want a standing desk and then types it because it's like think of ChatGPT text that you're typing in, we want our internal teams to be able to type it in and get the mesh out.

Yes. This is what got me really excited, Hareesh, the other day, is that -- so we've created these meta tags that are basically text tags that go with each 3D model. And when you type -- you literally type in to our internal search engine. We type in dining table made of wood, 4 black leather chairs around it. And the AI goes searching through our database and within a nanosecond pulls up 3 or 4 or 5 matches. And it's magic. It's freaking magical. And it's incredibly productive for our team to be able to do this. Think about it. They've already done the 3D model or somebody has -- we don't have to do it all over again from scratch. I mean when you look at every couch, there's always 4 or 6 legs of every chair. There's always 4 legs, right? There's a back, there's a seat, right? Every window has paints, every room has a door. I mean all these things are standard. And so if you don't have to recreate from scratch, if you're able to go into your library and pull out something similar or almost exact, think about the power of productivity that you get from that. It's massive. And it's the same thing, again, with like ChatGPT. It's the same thing with all the other AI platforms. It's only as good as the data, as the input. If you don't have those inputs, you're just never going to get the same efficiency. You're never going to get that enhanced productivity. No matter how good you are programming the AI, if you don't feed it the actual content, in this case, it's 3D models and meshes, it's just never going to be able to -- so right now, I just want to be crystal clear. We have had a breakthrough in our ability to tap into Amazon's library. And that now gives us this enormous, enormous database to feed our AI and allow us to really scale our productivity in a massive way. So it's an exciting time for us. We think this is very timely that this is happening right before Seller Central opens up. And we think when Seller Central does open, having all these AI tools and having our team in Hyderabad in India, is going to pay massive dividends for our shareholders.

So obviously, there's a massive focus on Amazon and Seller Central at the moment. Now John, who is on your call yesterday, pose the question. What's happening in international markets? I mean, are you looking at companies like Alibaba as well? Would that be a big opportunity? Yes.

So one of the strategic partners that is interested in acquiring a large stake or more in Nextech is in that part of the world, and they are interested in a license and selling to those into those markets. So yes, I mean, there's definitely discussions going on about expansion. We're already in North America, the European and the Middle Eastern markets. We already have customers throughout that -- those regions. And the next region for us would be Asia and the Pacific.

We already have our ops in Hyderabad, India now. So that's where I think Evan -- expansion when you're thinking, we already are exploring those areas as well. India is -- India and Asia market in general is on our radar right now and a lot of opportunity there, right? Everything like what we have done so far in 3D, again, it goes back to that, how we are building our company for a scalable and growth -- growth-enabled engine that we have so that's what we are thinking. Like we already built this now. It's just a matter of how we maximize our ROI through all these different markets that we can go, into all these furniture stores, there are so many furniture stores across the world and all this can be use 3D, right? Definitely, they want to, all customers will be going forward using 3D to shop as well. Apple's vision Pro glasses are coming up. What is the purpose of those, not just gaming. right? They also have see-through in the vision Pro, what's the purpose of that, it's about how we can enable shopping as well. Meta has Quest Pro, I worked in Meta. I know some of the product hardware road map that they are building and the purposes of them. It's about how do we enable future shopping through immersive experiences, truth and all it starts with building 3D into them.

Yes, yes. And I would even go so far, Hareesh just to say that Amazon and Meta, I'm sure are talking about integration where, hey, you're wearing a Meta headset, you want to shop on the Amazon platform. There's a link, you're in Amazon, all of a sudden, "Hey, 2D photos mean nothing when you're wearing a VR headset. You want everything in 3D. Otherwise, it's not going to look good." So all of this is going to accelerate. And it's literally just getting started from my perspective, again, are being approached by groups that want to acquire big stakes in our business at much higher valuations. And I would just say that right now, everything that we're doing is for the future. Everything that we're building is for this future where 3D models are the standard. You have to have a 3D model if you want to be on the Amazon platform. Amazon was telling Hareesh that if -- they can't force people to -- actually, this is a very interesting little stat. Hareesh and I chit chat a lot and he told me something and it was like kind of blew me away. Amazon isn't going to force people to have 3D models. I think legally, they can't force you to do something like that. But they can incentivize you by showing your product first in search if you have a 3D model. Isn't that what they said to you, Hareesh, that?

You can look up right now even on Amazon, right? The way the results show when you search on Amazon app, or website, anywhere. Is there, right? They have Amazon's preferred or Amazon Choice. I think they call that shows up on the top. The same way, if you have a 3D, like search for a gaming chair online on the app. You'll see first few results are the ones that have AR 3D in them, then you get -- so again, that's what comes back to earlier point on sellers. You have so many sellers selling it simple gaming chair, not as simple, but a gaming chair for example. And only those who have AR in them, show up first and then there is Amazon Choice. So this is how I think we see AR getting more utilized or being implemented across every platform.

Yes. Think about that. You're an Amazon merchants, you're seeing your products go down in rankings and you're going to wonder why? Because 3D models are replacing your ranking. And the next thing you're going to do is call up Nextech or one of the companies and say, "Hey, we need 3D models, and you're not even going to say how much, you're just going to say, we need 3D models". Because literally, your business is at risk. I mean, think about it. If you can't be found on Amazon's platform, you're out of business. Like there's just no 2 ways about it. So if they start ranking, which they are, 3D models higher than 2D photos, they're basically saying to you, you better get your 3D models, and Nextech is going to benefit from that in a massive way. I mean, again, I can't put a number on it other than to say that there's 300 million products on Amazon, they've only converted less than 5%. That means 95% is still out there for the taking. And that's worth -- my calculations, $100 billion. Obviously, it can't happen in a year. This is something that's going to happen over a period of years, and it's just a massive, massive pivot from 2D shopping to 3D and the AR headsets and the VR headsets, it's all part of this ecosystem that the 3D model and the shopping experience are all connected to a VR and AR glass experience. And so if everybody can just think about that for a minute, even after this live stream, I think people are going to start to have a little more clarity about the future and about what Nextech is building towards.

It sounds like you're very well positioned for it. We're running out of time. So Hareesh, do you have anything else you'd like to tell the viewers today?

I think. Just to add there on the market -- addressable market, how the industry is going to evolve, right? We touched a little bit on the glasses, the full future of retail shopping. If you think of it. When you wear a -- instead of doing it on a 2D screen on a phone, when you wear a VR headset, you can as well feel like you are inside a shopping mall, right? And then Amazon could be a shopping mall inside your VR and you're just walking in your VR and shopping, add to cart, add to cart, add to cart, those things. And to do that, you need 3D. So I think the future and even which is already here already, it just needs to be going -- It's going to be massive going forward. Once these devices and ecosystem comes in, right, like you've got Apple devices, you've got Meta's devices, you have these things coming in. We feel like we are rightly positioned. We are there, and that's what we are going to capture the majority of the addressable market that's out there, not just Amazon, again, yes, Amazon we are already in there. But think of many other e-commerce think you can think of. Everything is up for 3D has to -- everything has to start with a 3D for that to be ready for the future experiences.

And Evan, the last word goes to you.

Yes. I would just say to our investors that stay the course. We've made it through to -- I was saying to Hareesh a little earlier, like we're on the 1 yard line with Amazon and Seller Central. We've made it all the way here and now our valuation is the lowest it's been in 5-years. I mean it's kind of ironic. Obviously, for investors, it's painful. But if you -- again, get past the emotion, look at this from a different lens and see that, hey, the company is actually positioned better than ever and there are suitors circling and interested in our business because they see the opportunity at these low prices. I think -- Again, our investors need to just think about staying the course and not get emotional about the share price and focusing on the future and the potential of this Amazon Seller Central opening up in Q1.

Gents, we have to leave it there today. Thank you both very much for your time and your insights.

Thanks, Steve. Thanks Hareesh.

Thanks.

That's Evan Gappelberg, the CEO of Nextech3D.AI and Head of Product Operations, Hareesh Achi, thanks also for being part of this Proactive live stream event. Enjoy the rest of your day.