Virtuix Holdings Inc. Class A Common Stock Investor update

All right. Hello, everyone. Thanks for joining. We'll give it another 30 seconds or so for people to dial in and join. Give us 20, 30 seconds and we'll get started. All right. Well, welcome everyone. Thank you for joining our investor webinar. My name is Jan Goetgeluk. I'm the founder and CEO of Virtuix. I'll start off with some introductions. I'm joined today by my longstanding partner, David Allan, who's our President and COO. David leads our worldwide operations and has a storied career in manufacturing, specifically in Asia. He led big manufacturing programs for example, Flex for customers like Apple. I'm also joined by Oh, hey, David. Hi. I'm also joined by Lauren Premo, who's our Chief Marketing Officer. Lauren joined us from also a storied career in marketing.

For example, she was the Director of Marketing at Corsair, which is a big gaming hardware brand. What I'll do today is I'll walk you through some slides first to give you an update on the business, and then we'll open it up for Q&A. You'll see at the bottom right of your screen, you'll see a question tab, where you can put in your questions. We won't answer those during the presentation, but at the end, we'll start to go through and answer the questions we can answer. Obviously, we can't answer any forward-looking requests or information. All right, well then, it's great to see so many people join us today. It's great to see the excitement. We wanted to do this webinar because we have a lot of recent developments and successes we wanted to share since our latest earnings release.

We didn't want to wait until the next one. There's also been some volatility on the share price. I'm not necessarily supposed to comment on the share price, but I'm getting always a lot of texts and emails about that. I know a lot of you personally, many of the investors here and shareholders on the webinar. Many of you have been with us for many years, even 10 years. Also keep in mind, management and the board also have shares. We're the biggest shareholder of the company. To see the downward pressure on the share price, sometimes with no apparent reason or no apparent negative news, it's certainly gut-wrenching for all of us, sometimes head-scratching. Look, at the end of July, about six weeks ago, we had our lock-ups expire, so about over 15 million shares got added to our flow.

That's certainly expected to add some downward pressure, and I'm hopeful that that's behind us. We're having a bit of a rebalance. Look, ultimately, I believe, and we believe our business is doing really well. What I want to show to you today is just the strength of our business, our growth, our momentum in the defense space and the enterprise space, the potential acquisition, the pending acquisition we alluded to that if completed, we believe will be a major catalyst for us. We have a lot of great things going that we want to share with you. Ultimately, we as a team, we focus on what we can control and what we do best, which is building great products and continuing to build a great company. Without further ado, I'll get started here. Just a quick note on forward-looking statements.

During this presentation, I may make forward-looking statements. Do not place undue reliance on those. All right, let me start off with some highlights. As you know, we are a leader in full-body immersive simulation, and we do that with our core technology, the Omni, which is an omnidirectional treadmill that lets you walk and run around inside virtual reality worlds. You are not just sitting down and pushing buttons. You are physically moving around inside a virtual world. We do that for entertainment and gaming on the consumer side, as well as defense for training and simulation and enterprise. A couple of key highlights, recent successes and developments. On the consumer side, we launched Omni One for Quest in collaboration with Meta at the end of June.

Since then, our new orders for Omni One systems are up 3x, threefold, quarter to date compared to the same period last year since that Meta launch. That is a really exciting growth pattern we are seeing, strong momentum on the consumer side with our Meta launch. We will talk about that more. On the defense side, strong momentum and traction there. We are already working with all four major branches of the U.S. government, Department of Defense, the Marine Corps, the Army, the Navy, the Air Force, even sold units to the National Guard. I will go through each of the various projects and awards we have going on. Most recently, a couple of recent announcements, we sold some systems also to the U.S. Navy for their Morale, Welfare, and Recreation program, MWR, which is a program for sailors.

This is actually military-wide as well, just to take care of the recreation and the morale of the troops. The U.S. Navy has these centers, 68 centers nationwide at naval bases. We sold first systems to that program for one base, which can be It is globally potentially. Again, good revenue opportunity, but also just yet another way to increase our adoption and awareness across the U.S. military. That is just a recent announcement. We also just this week announced we sold the first systems to the Department of Veterans Affairs, the VA, for therapeutics. A bit of a crossover with our healthcare space. We will talk about that as well. We are in advanced negotiations on the strategic acquisition, which if completed, we believe would create significant value for us and our shareholders. We will talk about that as well. Consumer, defense, and then enterprise.

It is a third division that is coming up with peak sales to Tesla on the robotics side, Figure AI as well. You can think about industrial training, safety training simulation. We sold repeat units to NASA, for example. The majority of our enterprise systems are going to research institutions, universities, research groups. Those sales are growing as well. Those are high-margin sales. We will talk about that. Healthcare is emerging as potentially a third big vertical after consumer and defense, and we will talk about that as well. Also recently we got our 26th patent issued, five more pending. I just want to reiterate that we have a very strong IP portfolio around everything we do. There is really nobody else that I believe comes close to what we do. The growth of revenue streams, consumer, defense, and enterprise all around our Omni technology platform.

Across markets, we try to have upfront revenues from hardware and make a margin there, and then have recurring revenues from software afterwards, software licensing and so forth. Let's start with consumer. I am not sure if many of you have seen our Quest trailer. I think many of you have seen our general Omni One trailer. I will show our Meta Quest trailer real quick of our Meta Quest product, as you may not have seen it yet. Let me pull up a quick video just to set the stage.

All right. That is our Omni One for Quest. Let me go back to the presentation here. That Quest launch, I mean, it is off to an incredible start. Meta has sold about 20 million Quest headsets. By recent estimates, there are about 6 million or so active users. Addressable market was expanded by an immediate 6 million users who, for the first time, can use our product directly with their existing headset and game. Our orders, as I mentioned in the beginning, our orders are up threefold, 3x, since that Meta launch. Great momentum there. I feel like we are only getting started even with our Meta collaboration. There is still so much more we can do. Now we are looking at joint marketing opportunities, potentially bundling our products together. We are only scratching the surface here.

It is a great momentum here with our Meta product on the consumer side. Maybe David, now maybe it would be good to have you to say a few words about- Yeah production and we're getting ready, of course, for the holiday season.

Sure which is the most important season of the year, and shaping up to be a great season for us.

Maybe say a few words about Sure as you're leading our global operations for the production and Yeah.