Virtuix Holdings Inc.

Good morning, and welcome to the Virtuix Earnings Conference call for the first quarter of fiscal year 2027, ended June 30th, 2026. All lines have been placed in a listen-only mode, and the floor will be open for your questions following the presentation. During today's call, we may make statements relating to our goals and objectives for future operations, financial and business trends, business prospects, and management's expectations for future performance that constitute forward-looking statements under federal securities laws. Any such forward-looking statements reflect management's expectations based upon currently available information and are not guarantees of future performance and they involve certain risks and uncertainties that are more fully described in our SEC filings. Our actual results, performance or achievements may differ materially from those expressed in or implied by such forward-looking statements. Thank you for joining us. was issued last night and is available on the company's investor relations website at invest.virtuix.com. Hosting today's call are Virtuix founder, chief executive officer and chairman, Jan Goetgeluk, and chief financial officer, Thomas McGinnis. They will provide a corporate overview, review the quarter's key highlights, discuss the company's defense momentum and its expansion into enterprise and healthcare applications, cover financial results, and outline the company's priorities and outlook. With that, I'll turn the call over to Mr. Goetgeluk. Please go ahead, sir.

Thank you, operator, and good morning, everyone. Thank you for joining us. First, let me share a brief note on timing. We recently changed auditors. We appointed Eisner Amber as our independent registered public accounting firm. They're consistently recognized as a leading mid-tier accounting and advisory practice. So we're really excited to work with them. Now, the transition required additional time to complete the quality review, and that's what pushed back our filing by a few days. But our formal thank you has now been filed. And now let's review our results for the first quarter of fiscal year 2027. I'd say that this first quarter was one of the strongest commercial quarters in our company's recent history. And I want to spend most of my time this morning here on why that is. Before I do, let me share a brief overview for those of you who are new to our story. We're Virtuix. We're a leading developer of AI-driven full-body simulation systems. We're trading on the NASDAQ global market under the ticker VTIX since our debut on January 27, 2026. And our technology enables natural full-body movements in 360 degrees. Thank you very much. Healthcare, and other enterprise applications. And we have Virtual Terrain Walker, VTW, which is our defense simulation system. We are hardware experts with a proven track record of execution. Our manufacturing facility is established and is ready to support increased levels of production. We're pursuing a multi-use platform strategy with high-volume consumer sales that we aim to supplement with High Value, Defense, and Enterprise Contracts, all with recurring revenue from software licensing, subscriptions, and our custom simulation developments. What I would highlight about this quarter in particular is the high caliber of the parties now working with our technology. In the space of just a few months, we sold our first OmniOne Enterprise System to Tesla, were selected by NASA for a year-long Moon and Mars mission. We became the lead systems integrator on the U.S. Marine Corps trading project. And of course, we launched or made for Meta certified products in collaboration with Meta. So that's a meaningful validation for a platform that initially began in consumer gaming and now is expanding across various end markets. So let me walk you through the quarter's highlights before we take a deeper dive. On the demand side, the headline number here is orders. New orders for OmniOne systems increased 72% year over year, and new orders are up approximately 150%, roughly two and a half times compared to the same period last year. Since our June launch of OmniOne for Quest in collaboration with Meta. So those are some great growth numbers on the older side. On unit economics, gross profit increased 29% year over year and gross margin expanded to 30% from 17% in the prior year period. So approximately 13 percentage points of improvement. And we ended the quarter with $7.4 million of cash. Strategically, this was a very eventful quarter. We launched our made-for-meta product in collaboration with Meta, which is off to a great start, resulting in strong order growth in our consumer business. Our defense business continues to expand. We were selected as the lead systems integrator for the development of an infantry fireteam trainer for the U.S. Marine Corps. We also entered the counter-drone training space for the Marine Corps. In our enterprise business, as mentioned, we're now working with Tesla, with NASA, and we also signed a partnership with Sirica Therapeutics for use of OmniOne in autism therapy for children. One point of clarification before Thomas gets into the numbers later. A reported net sales actually declined year over year to approximately 800,000 from 1 million. That is a result of timing, not of demand. The prior year quarter included the final shipments of our legacy only one order backlog that included orders accumulated since our pre-order period began in August, 2023. And that is now cleared. This quarter's revenue, however, came from sales to new customers. And we believe new orders are the better forward indicator of the demand we are seeing today. So let me stay on that point because I think that's the most important trend in our business right now. So we officially launched OmniOne for Quest in collaboration with Meta in late June. And through that Made for Meta program, OmniOne is certified for the Meta ecosystem, for the Quest ecosystem. Meta sold more than 20 million Quest headsets, giving OmniOne access to the world's largest XR user base with an estimated six million active users. and those users now can pair OmniOne with their existing headsets and game library that they already own in a plug and play experience. So this materially expands our addressable markets. And the effect on our order profile was immediate. New orders are up approximately 150% since that launch. And that's a trend that we see continuing in the current quarter. We also see a room for additional growth there. We're exploring joint marketing opportunities with Meta, and most importantly, bundling the Meta and the Vertux products so we can offer a complete system, OmniOne for Quest, plus a Quest headset to gather to customers. So we believe we've only scratched the surface of the opportunities of our collaboration with Meta. Turning to defense, as I mentioned Virtuex is serving as the lead systems integrator for the development of an infantry fireteam trainer for the U.S. Marine Corps, supported by our strategic partner KBR. And this is an important distinction. This is not Virtuex simply supplying a component of this system. We are responsible for integrating the full solution and delivering the complete training system to the Marine Corps. Now, that system puts a four-person, a four-marine fire team on omnidirectional treadmills using M4 rifle surrogates and MetaQuest headsets, training together in scenarios that include close-quarter battles, patrols, and tactical decision-making. During this past quarter, we selected ABRT as our partner to provide a tracked weapon system, an instructor tool, and immersive training content for this program. and delivery to the U.S. Marine Corps in Quantico, Virginia is expected in the fourth quarter of 2026. Now to clarify this infantry fire team trainer, that's in addition to our virtual terrain walk system or VTW and that's that system that uses AI-driven Gaussian splatting to convert 360-degree camera footage into future realistic walkable geospecific terrain. You know, it cuts the time to build virtual worlds from weeks to merely hours. That's VTW. That's a system that uses the slogan, you know, want to trade before you fight on it. Explore the battlefields before we put boots on the ground. And VTW, that's a system for which we received a phase one CBER award from the U.S. Air Force, which we are working on as we speak. We also entered a hot new defense market this quarter, the counter-drone training. OmniOne has been integrated into Leetech's Counter-UAS Personal Trainer, which is an AI-enabled platform that recreates military training ranges for realistic counter-drone marksmanship training. So combined with the Omni, the trainees walk naturally through virtual environments. They navigate buildings, and they can communicate over tactical radios, all while engaging drones with realistic ballistics across both individual and multi-user scenarios. So that system will be evaluated by the U.S. Marine Corps Training and Education Command in Quantico, Virginia, with teams from 29 Palms and Camp Pendleton. Counter-drone training, needless to say, is among the fastest-growing priorities of Western militaries today. So this is an exciting development for us. So here's the overview of our expanding defense business. We now have active engagements across the U.S. Air Force, Marine Corps, Army, and Navy, as well as this quarter, the Air National Guard. With U.S. Air Force, we hold a NAVWORKS Sibber Phase I Award for VTW. And we've also sold test units to the U.S. Air Force Academy and to Yokota Air Force Base. During the quarter, we also delivered, as I mentioned, the first OmniOne system to a Pennsylvania Air National Guard unit in Horsham for evaluation of our system for virtual reality military training. And that's our first Air National Guard deployment. As mentioned previously, we're also the lead systems integrator on the infantry fire team trainer with U.S. Marine Corps. And also our counter drone trainer is entering evaluation by the Marine Corps Training and Education Command. With U.S. Army, we've sold only one to U.S. Military Academy at West Point. And with U.S. Navy, we signed a cooperative research and development agreement with the Naval Postgraduate School. So lots of momentum there in just a short timeframe. And our goal is to keep this strong early momentum going and moving that forward towards bigger awards and contracts. Now, alongside this organic progress, as we've talked about before, our board special committee is actively reviewing acquisition targets in the defense space around defense training and services. looking at companies with annual revenues in the $10 to $50 million range. And so specifically, we're looking at companies that give us immediate access to, in addition to those revenues, to government contract vehicles, sales channels, recurring defense revenue, and the past performance credentials that are critical to winning large government contracts. So stay tuned for more announcements in this regard. All right, beyond defense, we're also gaining strong traction in our enterprise business. We sold our first OmniOne enterprise system to Tesla for its Optimus humanoid robot division that uses a system for teleoperation of robots, enabling an operator to remotely control a humanoid robot in real time. Teleoperation is central to how humanoid robots are trained and supervised today. And full body movement is just a natural interface for that. Additionally, we won our second consecutive Augie Award at the Augmented World Expo for Best Interaction Product. Once more, recognizing OmniOne as part of a humanoid robot tail operation system built by the University of Central Florida. and this is yet another validation of our technology as a key input device for Enterprise XR applications. Lastly, we were selected by NASA for their Moon and Mars Exploration Analog Mission. OmniOne will support simulated extravehicular activities during this year-long study that will begin in 2007 in which four volunteers will live in a 650 square foot habitat to simulate astronaut performance during upcoming deep space missions, deep space missions. And so the key here is that these enterprise sales like these, it generates high margin hardware revenues plus recurring revenue from software licensing and potential services revenue alongside the hardware sale. So our enterprise business is yet another part of our strategy. And lastly, as you know, we've also been exploring the healthcare and therapeutics markets for OmniOne, which could be a potential major new vertical for us. And we made some major progress there this quarter. We signed a strategic partnership with Sirica Therapeutics to advance AI-driven autism therapy for children. And so we delivered two OmniOne systems to Sirica's treatment center in the San Francisco Bay Area. and they've announced plans to establish approximately 100 treatment centers nationwide. Now for context, there are an estimated 12,000 ABA therapy centers in the US. And we believe that that creates a potential scalable channel for only one enterprise in the healthcare space. Now that commercial partnership with Sirica sits on top of our university work that we have discussed previously. Rutgers University, WinLab is applying OmniOne to AI-assisted neurodivergent therapy, and they are actively developing an application for autism therapy for kids. And at the Florida Gulf Coast University, the Marriott College of Health and Human Services is evaluating OmniOne for physical therapy and neurorehabilitation. Now, we believe that full-body movements within AI-enabled environments may play an increasingly important role across next-generation healthcare and therapeutic applications. So we intend to keep advancing these developments and potentially have healthcare and therapeutics be another major market for our technology. All right, with that, I'll hand the call over to Thomas to walk us through the financials.

Thank you, Jan, and good morning, everyone.