Virtuix Holdings Inc. Class A Common Stock Micro-Cap Virtual Conference

Thanks, Anja. Welcome, everyone. Thanks for tuning in here. My name is Jan Goetgeluk, Founder and CEO of Virtuix. We're trading on Nasdaq under VTIX, and we're a leader in AI-driven full-body simulation for various industries, gaming, enterprise, and defense. We do that primarily with our Omni technology. The Omni is an omnidirectional treadmill that lets users walk and run around in 360 degrees inside virtual worlds. Running, jumping, crouching, kneeling, all in 360 degrees inside the virtual environment. Let me walk you through the presentation. Any forward-looking statements I make, here's a disclaimer about that. Let me show you a quick video of our latest treadmill, Omni One, and the video you'll see is basically our product video for the consumer market. That will give you a good idea of our core technology. Let me pull this up.

Oh, oh. All right. That's Omni One, our latest omnidirectional treadmill.

Lets you move and run around inside virtual worlds, in this case, video games for the consumer. Let me give you a quick overview of our company. We're pioneering movement in AI-generated worlds, whether it's gaming or otherwise. Omni One is our latest treadmill. It's a next-generation device, and it's continuing to scale. We just this morning reported our earnings, 72% order growth, and even 150% order growth since we launched our Meta product, Omni One for Quest with Meta. We'll talk more about that in a second. Strong growth that we are aiming to accelerate even more. We have a production facility in place. We can ship today up to 3,000 units a month. That's $100 million in annual revenue.

We focus on three key markets, consumer, with our Meta collaboration, defense for training and simulation. We are already working with all four major branches of the U.S. military, and enterprise, industrial training, safety training, robotics, healthcare as well. We will talk about that. We use AI to very quickly turn 360-degree camera footage into a walkable VR world within hours. I will show a video about that as well. Everything we do is protected by a strong IP portfolio. As I mentioned, consumer, enterprise, and defense, all with also recurring revenues from software licensing, services, and other revenues. We will start with consumer. The big catalyst there is we just launched Omni One for Quest with Meta, making our Omni One treadmill compatible with all Meta Quest headsets and part of the certified Meta ecosystem. Meta sold about 20 million or so Quest headsets.

By recent estimates, they have about 6 million or so active users who now, for the first time, can buy our treadmill, Omni One, and use it directly with their existing headset and game. It expands our addressable market by millions of users. The effect has been immediate. Since we launched that product in June, our orders have grown 150%, 2.5x from what they were before. We see that trend continuing this quarter. It is driving a lot of growth on the consumer side. We are still only scratching the surface of what we can do with Meta. We are exploring bundling Omni One with Meta headsets and other marketing opportunities. We believe there is lots more growth that we can potentially achieve together with Meta. On the consumer side, fun fact, it is gaming, but it is also exercise. It is good for your health.

You are running and you are moving, you are burning calories while moving our product. One user reported losing 40 pounds in 4 months using our product. It is kind of the Peloton for gamers, if you will. It is gaming, but it is active. Also for parents, get your kids off the couch. It is a major appeal of our product. We work with all the big game studios that are compatible now with Omni One. The economics on the consumer side, it is a direct-to-consumer business model with an upfront purchase price for the hardware and then recurring revenues from software. The upfront purchase, depending on the SKU, is around $2,500, more or less. It could also become a monthly payment with a firm, buy now, pay later, starting at $90 a month. It is not for everybody, but there is a big market for that price range.

It is the price of a gaming PC, of connected exercise equipment. It is that kind of product, and by the way, it is good for your health, so it adds to the purchase justification. On that upfront purchase price, we target to make a 40% gross margin on the unit level. Then we make recurring revenues from software. We have our Omni Online subscription that allows people to play online games, similar to Xbox Live for Xbox or PS Plus for PlayStation. We also sell games on our game store for the complete Omni One system. That adds recurring revenues to the upfront purchase price. That is consumer. Then we also have an enterprise division where we sell Omni One Enterprise, which is a higher margin unit, higher ticket price. There you can think about industrial training, safety training, and robotics as well.

We just announced we sold our first unit to Tesla for humanoid robots teleoperation. There's a lot of different use cases there. The key here is that for some of these, we use AI-driven 3D reconstruction, to very quickly create beautiful futuristic virtual worlds that are exact replicas of the real world, and we can do that within hours. Let me show you another video about this groundbreaking AI technology that we use. All right, pull this up. Thanks to new AI power techniques like Gaussian splatting, we can now quickly make high-fidelity digital twins of the real world using, for example, drone footage.

Think about applications like virtual tourism, industrial training, or mission planning and rehearsal for defense and law enforcement. That's a revolutionary technology that really delivers on the full promise of virtual reality, where we can now create these beautiful worlds very quickly. That was always the biggest bottleneck. It takes months to create worlds, takes a lot of money. Now we can do that based on camera footage within hours. That's revolutionary, and we use that for a variety of applications. Here's just a picture of that humanoid robot teleoperation project I mentioned, and Tesla, for example, bought the first Omni One Enterprise system for us for this use case. That's the enterprise section, and defense is a major focus of our company. We're already working with all four major branches of the U.S. military today.

We're selected as a lead integrator on an infantry training system for the U.S. Marine Corps. We also recently entered the anti-drone training market with another project for the Marine Corps. We signed a development agreement with the U.S. Navy. We sold units to the Army, to West Point, and on the Air Force side, we got a phase I SBIR award, for the Virtual Terrain Walk system. I'll show that in a second. We sold test units to the U.S. Air Force Academy, Yokota Air Force Base. Lots of early momentum in the defense space here for our technology. If you think about it, the military has always had simulators for aircraft. They've had simulators for vehicles, tanks. They've never before had simulators for ground troops or infantry until today, until our Omni technology, where now soldiers can walk around without boundaries inside virtual environments.

Another important thing I want to mention here is we're actively looking at M&A opportunities in the defense space, particularly around training and services, looking for companies with revenues from $10 million to $50 million. It will increase our revenue substantially off the bat, but it also gives us access to contract vehicles, sales channels, past performance credentials as to accelerate our momentum in the defense space even more. Defense is a major focus of ours. Here's that infantry training project for the Marine Corps. It's for a fire team, so four soldiers, four Marines, will be on four treadmills working together inside virtual environments for training. We aim to deliver or bring the first system to the Marine Corps at Quantico, Virginia in the fourth calendar quarter of this year. Another system is a Virtual Terrain Walk.