FREDERICTON, New Brunswick, Nov. 19, 2024 (GLOBE NEWSWIRE) -- NextGen Digital Platforms Inc. (“NextGen” or the “Company”) (CSE: NXT) is pleased to announce that, further to its press release dated October 8, 2024, it has concluded the proof of work trial (the “POW”) for its cloud-based AI-powering hardware-as-a-service business (“Cloud AI Hosting”), and completed both front-end and back-end upgrades to its e-commerce platform, PCSections.com (“PCS”).
NextGen has completed the POW aimed at transitioning Cloud AI Hosting to a fully cloud-based model. Although the POW demonstrated potential benefits - such as enhanced scalability, reduced physical inventory risk, and operational flexibility - the financial projections did not meet the Company's expectations for economic viability. As a result, the Company intends to maintain its original strategy of acquiring additional physical GPUs to support Cloud AI Hosting to meet customer demand in the AI sector.
In addition, NextGen has successfully completed the upgrades to PCS. Both front-end and back-end improvements have been finalized, including enhancements to site design, checkout and payment processes, security features, and overall loading performance. The PCS product catalog has been refreshed with competitively priced products, and the Company will be launching a marketing program to attract new customers and enhance the platform's visibility in the e-commerce space. Readers are encouraged to explore and shop at the new PCS website at www.pcsections.com.
Kevin Zhou, NextGen’s Director of Platforms & Marketing, stated, “The POW for Cloud AI Hosting provided valuable insights. While it didn’t align with our financial objectives, it demonstrated technical feasibility and rapid deployment potential, and we’ll keep this option open for future consideration. Meanwhile, investing in physical infrastructure will allow us to scale Cloud AI Hosting more effectively and with a stronger cost-benefit ratio. The recent PCS upgrades are also designed to enhance value for our current and future customers.”
Joel Freudman, President & CEO of NextGen, added, “We are pleased with the ongoing progress in both our platforms, albeit we intend to focus further investment on Cloud AI Hosting which offers superior potential for revenue growth and, ultimately, profitability. These enhancements will help us maintain our competitive position and support our ongoing operational objectives. At the same time, we continue to evaluate additional opportunities to develop or acquire other micro-technology platforms, in digital-native sectors ranging from Web3 to AI to software. We believe we can leverage our significant in-house technological development expertise to add revenues and businesses over time, for the benefit of our Company and our shareholders.”
The Company is also pleased to report that it has published its financial results for the three and six months ending September 30, 2024 (“Q2 2025”), now available on the Company’s SEDAR+ profile page at www.sedarplus.ca. For the three months ending September 30, 2024, among other financial highlights, NextGen reported revenue of $127 from Cloud AI Hosting, which is commercialized but still in its infancy as a core platform of the Company, and a net loss of $95,197, in part due to non-recurring expenses relating to the Company’s go-public process. As of September 30, 2024, the Company held cash and short-term investments (GICs) totaling $264,420, positioning the Company for continued development and growth.
About NextGen Digital Platforms Inc. NextGen is a Canadian technology company specializing in the development and acquisition of revenue-generating micro-technology digital platforms. The Company currently operates e-commerce platform PCSections.com (“PCS”) and a hardware-as-a-service business supporting the artificial intelligence sector, called cloud AI hosting (“Cloud AI Hosting”). Both PCS and Cloud AI Hosting were developed in-house by NextGen. From time to time the Company also intends to evaluate and acquire or develop other micro-technology platforms.
NextGen is a portfolio company of Resurgent Capital Corp. (“Resurgent”), a merchant bank providing venture capital markets advisory services and proprietary financing. Resurgent works with promising public and pre-public micro-capitalization companies listing on Canadian stock exchanges. For more information on Resurgent and its portfolio companies, please visit Resurgent’s website at https://www.resurgentcapital.ca/ or follow Resurgent on LinkedIn at https://ca.linkedin.com/company/resurgent-capital-corp.
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Cautionary Statements Regarding Forward-Looking Information
Neither the Canadian Securities Exchange nor its regulation services provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains certain forward-looking statements, including those relating to the future development, expansion, and financial potential of PCS and Cloud AI Hosting; expected benefits of improvements to PCS and Cloud AI Hosting; and potential acquisitions and/or development of new business lines. These statements are based on numerous assumptions regarding the Company’s business strategy and plans, technological developments, and new business opportunities that are believed by management to be reasonable in the circumstances, and are subject to a number of risks and uncertainties, including without limitation: technological and business risks inherent in artificial intelligence, e-commerce, and other emerging sectors that the Company is or may become involved in; operational and technical challenges; uncertain financial prospects of Cloud AI Hosting and PCS; the Company’s ability to compete with other businesses in the e-commerce and/or cloud hosting markets; negative operating cash flow and potentially insufficient capital to complete the development and/or expansion of any of the Company’s technologies; volatility in financial markets and economic conditions; and those other risks described in the Company’s continuous disclosure documents. Actual results may differ materially from results contemplated by the forward-looking statements herein. Investors and others should carefully consider the foregoing factors and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements herein except as required by applicable securities laws.
