NexTech AR Solutions Corp (CSE:NTAR) (OTCQB:NEXCF) has reported its best month yet of revenue and gross profit in March, a surge driven in part by the economic shift toward working from home caused by the coronavirus (COVID-19) pandemic.
The augmented reality (AR) company saw $1 million in booked revenue last month, it’s highest ever and more than triple its revenue from March 2019.
Part of the reason for the growth is that AR technology is made even more crucial when employees and consumers are doing all their working and shopping from home, CEO Evan Gappelberg said. For that reason, he expects the surge to continue into April.
“We had over $3 million in cash and inventory on hand at the end of March which means the company is perfectly poised to ride out the COVID19 new economy,” Gappelberg said in a statement.
“As a diversified company we have multiple business segments that are benefiting from the new work from home and shop from home paradigm shift that employers, businesses and governments have instituted due to the coronavirus.”
NexTech recently acquired the remote video learning and training platform Jolokia, which puts the company in a potentially strong position if operating from home continues to become the new normal.
“We are fortunate to be experiencing a major surge in our AR ecommerce division to the point where we are hiring additional personnel to handle the incoming orders,” Gappelberg said. “Also, we are in the market and experiencing a lot of interest in our new Virtual Conference offering which we believe will lead to meaningful new contract revenue in the short term”.
Additionally, NexTech said it has granted just over 1 million stock options to directors, officers, employees and consultants. The options vest over three years at C$1.34. The board also approved the cancellation of 850,000 incentive stock options currently exercisable at C$1.89.
NexTech is one of the leaders in the rapidly-growing augmented reality industry, estimated to hit $120 billion by 2022, according to Statista. The company offers AR for e-commerce companies, AR in Chat, an ARitize App, AR University for education and “v-commerce,” an in-store virtual reality experience.
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