Hi, everyone. My name is Ted Tedla from Water Tower Research. I'm Managing Director in the Investor Engagement Group. The next presenting company is Virtuix Holdings. Jan Goetgeluk .
Hey, everyone, thanks for coming. Excited to present to you here today to tell you a bit more about our company and what we do. In a nutshell, we make a technology called the Omni, which is an omnidirectional treadmill that lets you walk and run around in 360 degrees inside virtual worlds. Could be AI-generated worlds for gaming, it could be also worlds for training and simulation in the defense industry, for example. Couple of highlights. I'll show a video as well. We went public in January. We're growing rapidly, 41% year-over-year growth. Production is set up to develop and produce our technology, up to $100 million in annual revenues. We focus on two key markets, consumer and defense, and also some enterprise. We'll talk about that. Use a lot of AI in our technology to create virtual environments using AI-driven 3D reconstruction.
I'll show you a video about that as well. Everything we do is protected by our IP, by our patent. If you haven't seen our technology yet, let me show you a quick video of Omni One, which is our consumer product.
That swag, that get us a low-key. I make it look easy. No hesitation, I'm in control. Our motivation, I got nothing to prove.
That's Omni One, which is our most advanced and latest treadmill. We've brought several products to market to date, sold over $20 million of products, 25 patents, we're ready to scale, ready to grow. That's the bottom line. We started with the original Omni Pro. We have an Omni Arena attraction for entertainment venues, Omni One is our version for the home, and we also use the same treadmill for defense and other applications. Our production facility is ready. We are producing, we are shipping. We can ship up to 3,000 units a month. That's about $100 million in annual revenues. As I mentioned, key markets are the consumer markets. We'll talk about that. We initially focused on the U.S., we started expanding internationally, and we have a collaboration there with Meta.
Enterprise for training other applications in the enterprise space, using AI to create the virtual worlds. With our technology can then walk around inside those worlds. Also training, safety training, some medical applications, robotics. I'll show you some examples there. Defense is another area where we're having a lot of traction with our Virtual Terrain Walk system, we'll talk about that as well. We've sold units, we have partnerships with all four branches of the U.S. military: Army, Navy, Air Force, and Marine Corps. On the consumer side, we announced our Made for Meta collaboration. We'll soon come out with a Meta product that will be also Meta-certified and available on the Meta store. That really expands our addressable market in a big way. What, 20 million Meta headsets have been sold.
By recent estimates, about 6 million active Quest users who now, for the first time, can buy our product, the Omni, and use it with their existing headsets and games. It expands our addressable market in a big way, thanks to our Meta collaboration. It's a consumer gaming system, but it has clear exercise benefits. You saw in the video, you're active, you're running, you're moving, you burn calories while playing video games. One of our users lost 40 lbs in four months using our product, for example. You burn 700 calories per hour playing an action game on our device. It's gaming, but it's good for your health, and that's a key benefit to our customers. We work with all the big games, big VR titles. No one has to make content just for us. We can just plug into existing games.
Very easy to integrate our SDK, we have no shortage of great games for our system on the entertainment side. The economics on the consumer side, there's an upfront purchase. It's DTC, direct-to-consumer. We sell the hardware upfront, about $2,500-$3,500 per system, depending on the system you get. We make about a 40% gross margin on the hardware, on the upfront purchase. The price point, look, it's not for everybody, look, it's similar to a gaming PC, similar to connected exercise equipment. It's that kind of product. Not for everybody, but you also, with a payment plan with Affirm, it's about $100 a month. It's accessible for a wide range of people. Our target audience are gamers, and they're used to spending thousands of dollars on their gaming equipment.
In this case, it's not just a gaming system, but again, it's good for your health. That adds to the purchase justification. There's the upfront purchase price, and then we make recurring revenues from selling games on our store and from online subscriptions to play online games, similar to Xbox Live for Xbox or PS Plus for PlayStation. That's how we juice the margins. Then the marketing on the consumer side, it's mostly paid social, the Meta suite, Facebook, Instagram, YouTube works well for us too, some TikTok. That's our paid media strategy. We also work with influencers, all the big gaming streamers, YouTubers, Twitch streamers. We have an influencer program that we use to promote the product to our gaming audience, affiliates and customer referral program as well. That's on the consumer side.
Enterprise, you can think of, as I mentioned, safety training, industrial training. It's a smaller market for us, but high margins, high value. We sell the enterprise system for about $5,000 per system, 70% gross margin on that. We also have our Omni Arena business. That's our commercial entertainment system for places like Dave & Buster's. We're not selling new systems there anymore, but we're still making recurring revenues from maintenance contracts, replacement parts, games, secondary sales, and so forth. One key thing we're doing in the enterprise space is using AI to create the virtual world. Creating virtual worlds historically has been very expensive, takes a lot of time. Now, thanks to AI and AI-driven 3D reconstruction, very quickly we can turn camera footage into a photorealistic virtual environment within hours.
I'm going to show you a quick video of that. It's a real game changer for what we do.
Thanks to new AI-powered techniques like Gaussian splatting, we can now quickly make high-fidelity digital twins of the real world using, for example, drone footage.
It's 1:00 P.M. We're here at a training center in Austin, Texas. We're going to be capturing a scan with our 360-degree LIDAR scanner attached to this drone. All right, it's 1:30 P.M. now. We got the data that we need. Took about 20 minutes to capture. Now let's load it onto the computer. It's 3:00 P.M. We're back at the office. The environment is ready. From start to finish, this whole process took about two hours.
Think about applications like virtual tourism, industrial training, or mission planning and rehearsal for defense and law enforcement.
Yeah. This technique, it's a game changer, because it really delivers a full promise of virtual reality, where now we can create these virtual worlds very quickly, and they're photorealistic. With our technology, you can then walk around inside those worlds. It's groundbreaking. Embodied AI, just another application where, for example, UCF, University of Central Florida, had a project where they used our system to teleoperate a humanoid robot. Somebody walking on the Omni can see what the robot is seeing. It's walking around, and then the robot further down the hallway is basically following those moves. Just another application. Defense. Defense is a big market for us. Lots of traction in that market. If you think about it historically, traditional simulator systems use big screens. It's very expensive. It's not very immersive. It's limited to a few users.
The military has been using more and more VR, for example, room scale VR, where you wear a headset, you have a backpack on, and you walk around in a room scale area, but you're still limited because you're going to bump into walls, you're going to bump into other people. You're limited in space and the number of users. We fixed that. With our technology, warfighters can put a virtual reality headset on, be immersed in a virtual environment, and then walk without boundaries in that virtual world with 12 + team members, and that's just incredible. If you think about it, the military has simulators for aircraft, they have simulators for tanks, but they've never had simulators for ground troops, for infantry, until now, until our technology. Lots of traction and momentum in the defense space for us.
We're now working with all four branches of the U.S. military. We were selected as a lead integrator on an infantry training project for the U.S. Marine Corps. We signed a development agreement with the U.S. Navy. The U.S. Army bought several units, including West Point, the U.S. Air Force bought several units. We also recently got selected for a SBIR Phase I award for our Virtual Terrain Walk system. Lots of traction there as we pursue bigger contracts in the defense space. We announced that we're actively looking at M&A acquisition targets in the defense training space to really accelerate our growth there to take our revenues to the next level, also past performance, have access to contract vehicles and so forth. Lots of activity there.
The training project with the Marine Corps is initially a four-person trainer for mission rehearsals, where four warfighters, four Marines, part of a fire team, can practice different drills within a virtual environment. For example, a react to ambush or react to contact drill. They can now do that virtually with our technology. It's initially a pilot project. If that works out, that can be rolled out to 20 or so training centers of the Marines nationwide at about half a million to a million dollars per system. The Air Force award is for our Virtual Terrain Walk system for mission planning. What we do there is we use that AI technique to very quickly create a virtual replica of a mission area.
With our Omni technologies, Omni systems lets the warfighters walk inside that area for mission planning, get a sense of space, of distance, familiarize themselves with the battlefield before they put boots on the ground. Walk the terrain before you fight on it. I'm going to show a quick video of that as well.
You've never been able to do anything like this before. Fields to training within hours in real environments. Mission planning, mission rehearsal, training applications.
Immersive, that you can actually move in, testing the limits of your stamina
You're running, kneeling, jumping, you're collaborating with everybody else in your unit. They can really get in there, and they can really understand what the lay of the land looks like. Everybody walks away safe.
It really did feel like I was there and I was walking through that field. It was very cool, a good little workout.
Not very often do you see a revolution in military technology. The Virtuix Virtual Terrain Walk is that revolution. The VTW allows warfighters to walk the terrain before they have to fight on it. It starts with a drone capture. Once we've created that virtual environment, we can enter into the Omni treadmills, and they can be either local or distributed across the country, where we can all meet in a session to make sure that we can safely accomplish our mission. One of the key aspects of the Virtual Terrain Walk is it's commercial off-the-shelf. The Omni One is a very small, compact system. You can have it set up in minutes and have it deployed to the point of need.
On the modern battlefield, I don't have the luxury of bringing folks together. The fact that I can do a distributed rehearsal but get that very tactile feel, I think it's revolutionary.
With the VTW, warfighters are able to get a sense of terrain awareness that they will not be able to get any other way.
I see this as a valuable training, leader development, and mission rehearsal tool. I think it's incredibly powerful to account for the time and space considerations and see how we would respond based on changes in the environment, iterate through the scenarios as I want to change variables. I can take the adjustments to the plan, feed those back as a digital output straight into my common operating picture, eliminate the potential for error, create that feedback loop to my plan and my understanding.
I can use the VTW to actually adjust operational plans that will be executed by our warfighters. The Virtual Terrain Walk is unique in the industry to provide this capability. This is something that the Department of Defense doesn't need to spend 15 years developing. I'm pretty excited about this. Being able to get technology in the hands of warfighters now is something that is absolutely critical to maintain our technological advantage. The Omni is also a great way to keep our warfighters active and fit. Several of our customers burn 300, 400, and 500 calories an hour maintaining health and fitness in a fun and engaging way. Walking the terrain and getting that timing is an absolute critical aspect that today is only done when you're under fire. With the Virtual Terrain Walk, you can do that before the first round is fired. It's a game changer. Yeah.
That's our Virtual Terrain Walk system. Know your terrain, own your mission, it's a revolutionary capability. There's nothing like it. The military has not had that capability before, where now you can have 12+ soldiers all together in a virtual environment, explore, maneuver together in 360 degrees without boundaries in that environment. If you think about the market size, just the U.S. Army alone has 117 battalions that could use a system like this. Software like systems, in a half a million to a million dollars plus recurring revenues from licensing, maintenance, simulations, that's just the U.S. Army, 100-plus bases. You have, as mentioned, Air Force, Navy, Marine Corps, NATO Allied Forces. It's a big opportunity for us. We're ready to scale. We have a team in place. Our core team has been together for a long time.
This is what we've accomplished together with experience in hardware, in defense, in entertainment, and scaling businesses. We're growing quickly. We reported 41% year-over-year growth last earnings. Next earnings are coming out in a few weeks. Our year-end financials. Bottom line is growing revenues, narrowing losses, improving margins, all moving in the right direction. Just to sum it up, in a nutshell, our strategy, it's high volume consumer and high value defense, that's our dual use strategy, if you will, with some enterprise opportunities too. We can rapidly scale on the consumer side. We have a production capacity in place. We don't need to ship a lot of volume. As I mentioned, 6 million active Quest users. If we ship 3,000 Omnis per month, that's already $100 million in annual revenue.
Our revenues can scale rapidly on the consumer side, bigger, higher margin opportunities on the defense side, which are lower volume but high value, bit of a longer sales cycle, accelerating that through M&A as well. If we execute everything that we have going on this year, we're going to be in a very good shape. We're ready to scale, ready to take off. We took the company public a few months ago. We're only getting started, but we have an exciting journey ahead of us. I welcome everybody to follow our journey, follow our story, sign up for our press releases at invest.virtuix.com, I hope to welcome you as investors in our company. Thank you.
There's a typically Q&A, I'm not sure. Yep, go ahead.
Yeah. We raised quite a bit of money with our listing.
We raised about $19 million through the listing and through a warrant, we're well capitalized right now. We'll see, maybe next year we may put an ATM in place, for example, once we're shelf eligible. Yeah. Yep. Yeah. It's based on low friction. It's a low friction concave base, you have overshoes, also low friction. You basically, when you put your foot down, it slides back to the middle. It is designed as such that for your brain, it feels like you're walking. It feels like you're walking at 360 degrees in the virtual world. Yeah. All right. Well, thank you everybody. Have a nice afternoon. Thank you.