Virtuix (VTIX) Investor update summary

Business highlights and recent developments

• Orders for Omni One systems tripled quarter-to-date after the Meta Quest launch, expanding the addressable market by 6 million active users.

• Strong momentum in defense, with sales and projects across all four major U.S. military branches and the Department of Veterans Affairs.

• Enterprise sales are growing, with high-margin repeat sales to organizations like NASA and Tesla, and healthcare is emerging as a promising vertical.

• A potential strategic acquisition in the defense sector is under negotiation, targeting a company with annual revenues near the upper end of the $10 million to $50 million range, which could significantly increase revenues and accelerate access to government contract vehicles.

• The company holds 26 issued patents, with five more pending, reinforcing its strong IP position.

Financial performance and outlook

• Reported $4.2 million in revenues last fiscal year, with gross margin rising to 30% in the last quarter.

• Not yet profitable, with adjusted EBITDA last quarter at negative $3 million, but focused on scaling revenues and controlling costs to reach profitability.

• Cash position is approximately $8.5 million, providing runway into next year, with options for additional capital through public markets.

• Target gross margin for consumer hardware is 40%, and enterprise sales target 70%+ margin.

• Profitability is expected once large defense contracts materialize, potentially as early as next fiscal year.

Strategic initiatives and growth drivers

• Consumer growth is driven by direct-to-consumer sales, digital marketing, and influencer partnerships, with a focus on the holiday season.

• Defense sector growth is supported by initial contracts, ongoing SBIR awards, and a pipeline of larger programs.

• Enterprise and healthcare verticals are being developed, with applications in industrial training, robotics, and cognitive therapy.

• The company is actively improving products and has new items in the pipeline, with ongoing quality enhancements.

• Cost control is rigorous, with executive oversight on all expenses and a focus on maintaining lean SG&A.