Virtuix Holdings Inc. · NASDAQ:VTIX
Virtuix — Reg A Offering (December 2020)
38 slides from Virtuix's offering presentation, December 2020
Slide 1: Omni - Step Into Virtuix
<> Omni 2 VSI 9M Virtuix STEP INTO
Slide 2: Disclaimer
DISCLAIMER ‘THE COMPANY IS "TESTING THE WATERS" UNDER REGULATION A UNDER THE SECURITIES ACT OF 1999. THIS PROCESS ALLOWS COMPANIES TO DETERMINE WHETHER THERE MAY BE INTEREST IN AN EVENTUAL OFFERING OF ITS SECURITIES, THE COMPANY IS NOT UNDER ANY OBLIGATION TO MAKE AN OFFERING UNDER REGULATION A IT M
Slide 3: Company Snapshot
COMPANY SNAPSHOT A Headquartered in Austin, Texas A Developed “Omni” an omni-directional treadmill that lets players walk and run inside popular games and virtual worlds Ss Shipped over $10 million worth of product 3,650 Omni systems to 45 countries In 2019, began (mainly to enterprise and out-of-ho
Slide 4: Product Snapshot
PRODUCT SNAPSHOT OMNI PRO OMNI ARENA OMNI ONE Commercial version ruggedized for Multiplayer esports attraction Consumer version optimized continuous, high-intensity use featuring 4 Omni Pro systems for home use
Slide 5: Immersive and Active Gaming. For All Ages.
IMMERSIVE AND ACTIVE GAMING. FORALL AGES.
Slide 6: We've Sold Over $10 Million Worth of Hardware
WE’VE SOLD OVER $10 MILLION WORTH OF HARDWARE AND SHIPPED 3,650 OMNI SYSTEMS TO DATE 2013 Debuted original Omni on Kickstarter (targeted $100K but collected $1.1MM) 2013-2015 Conducted R&D and presales Presold Kicksterter edition to over 5,000 enthusiasts for $500-$700 (headset & PC not included) De
Slide 7: Omni Pro: Optimized for Commercial Use
OMNI PRO: OPTIMIZED FOR COMMERICAL USE Omni-directional treadmill that lets users walk or run at full speed in 360 degrees 99 Si Robust base with a compact Sturdy safety ring prevents footprint (4-foot diameter) falling or hitting walls Asseenin Ready Player One! wr Next-level immersive gaming syste
Slide 8: Omniverse Content Platform: Million Plays... and Counting!
OMNIVERSE CONTENT PLATFORM: 1 MILLION PLAYS... AND COUNTING! Tracks physical stats like distance run, steps taken, and calories burned ‘AFFECTED: The Manor The Exorcist Legion VR Charges venue operators per minute of gameplay
Slide 9: Omni Arena
OMNI ARENA The out-of-home entertainment industry’s top-earning VR attraction $70K $15K/year 30+ Gross margin Recurringrevenue = Omni Arenas per system per system installed to date Omni Arena has exceeded our revenue expectations. Customers come back and keep playing and playing. Eddie Hamann, owner
Slide 10: Players of All Ages Love Omni Arena
PLAYERS OF ALL AGES LOVE OMNI ARENA 30,000 Players monthly 97% Paying $12-15 Would play again eachforaé-min.come — OU [TIT 43% 70% Visit the venue specifically to play Omni Arena create player profiles WUE High repeat play 9.3 Some esports teams have played over 100 . times! Satisfaction rating Most
Slide 11: Rapidly Growing Player Community Wants the Omni Experience in Their Homes
RAPIDLY GROWING PLAYER COMMUNITY WANTS THE OMNI EXPERIENCE IN THEIR HOMES a COVID-19 -=Number of player profiles lockdown 70,000 STARTED OMNI ARENA — ROLLOUT Fl 50,000 40,000 30,000 20,000 10,000 ° MAR'19 APR'19 MAY'19 JUN'19 JUL'19 AUG'19 SEPT'19 OCT'19 NOV'19 DEC'19 JAN'20 FEB'20 AUG'20 11 (We ARE
Slide 12: The Time Is Now for a Home Product
THE TIME IS NOW FORA HOME PRODUGT iN The technology is ready. \ ,The business model is proven. J We've built a large player base “—“and can reach consumers directly and cheaply.
Slide 13: Introducing Omni One
Omni One prototype INTRODUCING OMNI ONE HARDWARE Complete entertainment system that includes: Omni One omni-directional treadmill Standalone VR headset (no PC or cables needed) SOFTWARE Online game store (closed platform) Connectivity with friends to boost social engagement Mobile app with game noti
Slide 14: Designed to Fit Tastefully Inside the Home
DESIGNED TO FIT TASTEFULLY INSIDE THE HOME S Light Ss Compact (4-ft diameter) A Easy to fold up and store Omni One is optimized for home use and allows unmatched freedom of movement, including kneeling and jumping
Slide 15: Applying the Peloton Business Model Playbook to Gaming
APPLYING THE PELOTON THE BUSINESS MODEL Direct-to-consumer, multi-channel sales CA Upfront equipment purchase A Recurring revenues from monthly subscriptions and game sales (see next slide) PLAYBOOK TO GAMING UPFRONT EQUIPMENT PURCHASE Omni One Omni One “dev kit” Complete system including VR headset
Slide 16: Monthly Subscriptions and Game Sales Deliver Recurring Revenue Upside
MONTHLY SUBCRIPTIONS AND GAME SALES DELIVER RECURRING REVENUE UPSIDE RECURRING REVENUES b & Monthly subscription for online gameplay, player rankings, and contests and prizes Game purchases from store Games for sale Ge $19.99 - $39.99 Targeting $45 / month per system $14.95 “Omni Online” monthly sub
Slide 17: We Have a Large Demo and Sales Channel
WE HAVE A LARGE DEMO AND SALES CHANNEL PROJECTED BY 2022 150 SA million OmniArenasites \~/ player profiles We can reach potential customers directly and cheaply We have the email addresses of our large and fanatical community of registered players, and we communicate with them at least once a month.
Slide 18: VR Enthusiasts
35 Average age 12 Hours Spent weekly on gaming $70 Spent monthly on gaming a VR These early adopters want the latest VR tech and have consistently loved the Omni experience. About 5,000 SJ E N ri Hq U S | ASTS enthusiasts preordered the original 2013 Omni version. Traditional methods of moving aroun
Slide 19: Gamers
Gamers want to step inside their favorite games, GA MERS and they appreciate Omni One’s fitness benefits. By offering a complete VR gaming system, we can reach gamers who don’t yet use VR. I'd like to be more fit but don’t like serious exercise or don’t have time for it. CN oer I would buy a gaming
Slide 20: Parents
Young people love Omni games (40% of PARENTS Omni Arena players are aged 8-20) and will ask their parents to buy Omni One. Survey data shows that many parents will agree. My kid(s) spend too much time ona smartphone, tablet, or computer screen. CO Gm I would purchase a video gaming system for my kid
Slide 21: Omni One's Serviceable Market Reaches 14MM Households in the U.S. Alone
OMNI ONE'S SERVICEABLE MARKET REACHES 14MM HOUSEHOLDS IN THE U.S. ALONE USS. households panalatone rience ESTABLISHED ACCESS Households of people aged 8-70 and $50K+ total income TO INTERNATIONAL MARKETS : 42MM Omni One TAM Households who own gaming devices Casia Via Virtuix’s China subsidiary and j
Slide 22: Levers of Growth to Make Omni One a Global Home-Entertainment Hit
4 LEVERS OF GROWTH TO MAKE OMNI ONE A GLOBAL HOME-ENTERTAINMENT HIT ‘1. Win over early adopters 3. Leverage viral reach of Omni content to Vitenthusiauts:whoareeatly adopterscfnewVR acquire target customers at low CAC products, have historically embraced the Omni We will engage influencers from the
Slide 23: Improving on Peloton's CAC and LTV
IMPROVING ON PELOTON'S CAC AND LTV CAC: Initially near zero Targeted long-term CAC: $500 / system Peloton reference: $1,000 / bike Low-cost leads from Omni Arena channel: 150,000 1 million 14% Players/mo Player profiles Want to buy at $1,995 } ‘ . 0 Viral reach via gaming streamers: Quip GWouTube vi
Slide 24: Consumer and Tech Trends Are in Our Favor
CONSUMER AND TECH TRENDS ARE INOUR FAVOR ACTIVITY AT HOME SCREEN TIME ULTRAFAST WIRELESS Demand for at-home fitness and Parents are increasingly alarmed Advances in cloud-based gaming will entertainment is rising about kids’ screen habits supercharge headset performance COVID-19 has accelerated dema
Slide 25: The Right Lineup
THE RIGHT LINEUP Core team together for 5+ years with major technical accomplishments v Awarded 14 patents for mechanical v Shipped 3,650 Omni Pro units design and motion tracking iets oe Ont Meenas ¥ Sold over $10 million worth of hardware product Developed 9 VR games in house Published 23 VR games
Slide 26: Virtuix's IP and Core Competencies Deter Copycats
VIRTUIX’S IP AND CORE COMPETENCIES DETER COPYCATS PATENT PROTECTION REQUIRED COMPETENCIES 14 USS. and international patents issued: The Omni product requires an unusual mix of core skills: IS 9,329,681 US 10,286,318 Electromechanical design A Game development us97es290 us 194695,162 Sincere quuncimn
Slide 27: Omni Applications Extend Beyond Entertainment
OMNI APPLICATIONS EXTEND BEYOND ENTERTAINMENT w 4 i Gi Military / corporate training and simulation Exercise and fitness Virtual museums Virtual tradeshows and events Virtual tourism Architectural design and walkthroughs Physical therapy Gh Education
Slide 28: Virtuix Raised $20MM from Investors to Date
VIRTUIX RAISED $20MM FROM INVESTORS TO DATE PRE-MONEY VALUATION: Serica Notable Virtuix investors include $65MM Mark Cuban, 2 strategics, and 12 VC funds including Maveron, Scout Ventures, and 2020 Ventures (mM) $70 * Series A 60 : $35MM $50 = Fv JOIN OUR CURRENT OFFERING: 30 $20 | Equity: Series A-
Slide 29: Successful Team Building World-Class Products
SUCCESSFUL TEAM BUILDING WORLD-CLASS PRODUCTS JAN GOETGELUK Founder & Chief Executive Officer Started Omni R&D in 2011 Founded Virtuix in April 2013 Previously J.P. Morgan Investment Banking DOUG SHUFFIELD Director of Engineering 20+ years of software / hardware development Previously Textron DAVID
Slide 30: Virtuix Advisory Board
VIRTUIX ADVISORY BOARD MIKE GRIFFITH Game industry senior executive Former CEO and Vice Chairman of Activision, one of the world's largest videogame publishers. Led during the merger with Vivendi Games and the rise of Activision's blockbuster “Call of Duty” franchise. Current Director of Dave & Bust
Slide 31: Investment Highlights
INVESTMENT HIGHLIGHTS if, Experience and know-how to bring new Omni One gaming product to the home market Out-of-home installations and large player base provide direct demo and sales channel for Omni One at no cost cf, High recurring revenue upside thanks to addictive gaming content (monthly subscr
Slide 32: Product Reviews: Virtuix vs. Competitors
PRODUCT REVIEWS: VIRTUIXVS. COMPETITORS
Slide 33: Early Adopters Have Historically Embraced the Omni
EARLY ADOPTERS HAVE HISTORICALLY EMBRACED THE OMNI Cm early backer who received his Kickstarter edition Omni left this in-depth review: GE The included game, Omni Arena, is incredible. The foot tracking in Omni Arena is native, and it's shocking how well it works. GE It feels so good to be able to l
Slide 34: Journalists Published Rave Reviews of the Original Consumer Omni
JOURNALISTS PUBLISHED RAVE REVIEWS OF THE ORIGI 46 engadget This thing is freakin’ awesome. Loved it. WANT. GG tomsHARDWARE Virtuix proves that the Omni is the real deal. Running around in a 3D environment is more fun than | can describe in words. | was excited beyond belief when | came out, and all
Slide 35: Negative Reviews Were Few But We Learned from Them
NEGATIVE REVIEWS WERE FEW BUT WE LEARNED FROM THEM One journalist wrote a negative hit piece, but readers left comments criticizing his conclusions: GG@ Reviewer either did not actually try it, or is very uncoordinated. It's very natural movement. To say that the "free roaming" Oculus and Vive solut
Slide 36: KATVR's Recent $1.7MM Kickstarter Campaign Shows Pent-Up Demand
KATVR’S RECENT $1.7MM KICKSTARTER CAMPAIGN SHOWS PENT-UP DEMAND FOR HOME PRODUCT VR | Chinese firm offering treadmill for $1,000 (no headset or PC included) Sold $1MM worth in first 24 hours CvIRTUIx HAS MAJOR ADVANTAGES OVER KATVR Omni One is suitable for mass market (not Virtuix is U.S. based just
Slide 37: Other Me-Too Copycats Have Failed to Reach Meaningful Scale
OTHER ME-TOO COPYCATS HAVE FAILED TO REACH MEANINGFUL SCALE ) INFINADECK VIRTUALIZER 7 o RITH AAZNWALAIA BF @® Currently offers low- ® Sells to enterprise at $40K-$60K per system volume enterprise system ® Motorized design results in challenges with latency (reaction speed) and player imbalance @ Fa
Slide 38: Our Mission: Bring Omni One to Millions of Homes Around the World
OQomnione (Com OUR MISSION TO BRING OMNI ONE TO MILLIONS OF HOMES AROUND THE WORLD