Operator: Good morning, and welcome to the Virtuix Earnings Conference Call for the first quarter of fiscal year 2027, ended June 30, 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 that are not guarantees of future performance, and may 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.

We undertake no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this call. Today’s discussion also includes adjusted EBITDA, a non-GAAP financial measure. A reconciliation of net loss to the most directly comparable GAAP measure to adjusted EBITDA is included in the financial tables of the earnings press release issued yesterday after market close last night. A press release detailing these results 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 will turn the call over to Mr. Goetgeluk.

Please go ahead, sir.

Jan Goetgeluk, Founder, Chief Executive Officer, and Chairman, Virtuix Holdings Inc.: Thank you, operator. Good morning, everyone. Thank you for joining us. First, let me share a brief note on timing. We recently changed auditors. We appointed EisnerAmper as our independent registered public accounting firm. They are consistently recognized as a leading mid-tier accounting and advisory practice, so we are really excited to work with them. The transition required additional time to complete the quarterly review, and that is what pushed back our filing by a few days. Our Form 10-Q has now been filed. Let us review our results for the first quarter of fiscal year 2027. I would say that this first quarter was one of the strongest commercial quarters in our company’s recent history. 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. Our technology enables natural full-body movements in 360 degrees, walking, running, crouching, strafing, and jumping in every direction inside video games, simulations, and other AI-generated worlds. Our flagship product is Omni One, which is our most advanced omnidirectional treadmill to date. Our portfolio comprises of five products now, protected by more than 25 patents. We have Omni One, Omni One for Quest, and Omni One Core on the consumer side. We have Omni One Enterprise for industrial training, robotics, healthcare, and other enterprise applications. We have Virtual Terrain Walk, 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 development. 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 Omni One Enterprise system to Tesla. We were selected by NASA for a year-long Moon and Mars mission. We became the lead systems integrator on a U.S. Marine Corps training project. Of course, we launched our Made for Meta certified product in collaboration with Meta. That’s a meaningful validation for a platform that initially began in consumer gaming and now is expanding across various end markets.

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 Omni One systems increased 72% year over year. New orders are up approximately 150%, roughly 2.5 times compared to the same period last year since our June launch of Omni One for Quest in collaboration with Meta. Those are some great growth numbers on the order side. On unit economics, gross profit increased 29% year over year, and gross margin expanded to 30% from 17% in the prior year period. Approximately 13 percentage points of improvement. We ended the quarter with $7.4 million of cash. Strategically, this was a very eventful quarter.

We launched our Made for Meta products 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 Virtual Trainer for the U.S. Marine Corps, and 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 Omni One in autism therapy for children. One point of clarification before Thomas gets into the numbers later. Our 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 Omni 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. We believe new orders are the better forward indicator of the demand we are seeing today. Let me stay on that point, because I think that’s the most important trend in our business right now. We officially launched Omni One for Quest in collaboration with Meta in late June. Through that Made for Meta program, Omni One is certified for the Meta ecosystem and for the Quest ecosystem. Meta sold more than 20 million Quest headsets, giving Omni One access to the world’s largest XR user base with an estimated 6 million active users.

Those users now can pair Omni One with their existing headsets and game library that they already own in a plug-and-play experience. This materially expands our addressable markets. The effect on our order profile was immediate. New orders are up approximately 150% since that launch. 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 Virtuix products where we can offer a complete system, Omni One for Quest, plus a Quest headset together to customers. We believe we’ve only scratched the surface of the opportunities of our collaboration with Meta.

Turning to defense, as I mentioned, Virtuix is serving as the lead systems integrator for the development of an Infantry Fireteam Virtual Trainer for the U.S. Marine Corps, supported by our strategic partner, KBR. This is an important distinction. This is not Virtuix 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. That system puts a four-person, a four-Marine fire team on omnidirectional treadmills using M4 rifle surrogates and Meta Quest 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. Delivery to the U.S. Marine Corps in Quantico, Virginia, is expected in the fourth quarter of 2026.

To clarify, this Infantry Fireteam Virtual 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 photorealistic, walkable, geo-specific terrain. It cuts the time to build virtual worlds from weeks to merely hours. That’s VTW. That’s the system that uses the slogan, "Walk the terrain before you fight on it, and explore the battlefields before we put boots on the ground." VTW, that’s the system for which we received a phase I SBIR 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. Omni One has been integrated into LeadTech’s C-UAS Personnel Trainer, which is an AI-enabled platform that recreates military training ranges for realistic counter-drone marksmanship training.

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. That system will be evaluated by the U.S. Marine Corps Training and Education Command in Quantico, Virginia, with teams from Twentynine Palms and Camp Pendleton. Counter-drone training, needless to say, is among the fastest-growing priorities of Western militaries today. This is an exciting development for us. Here is 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 an AFWERX SBIR Phase 1 award for VTW, and we have 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 Omni One system to a Pennsylvania Air National Guard unit in Horsham for evaluation of our system for virtual reality military training, and that is our first Air National Guard deployment. As mentioned previously, we are also the lead systems integrator on the Infantry Fireteam Virtual 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 have sold Omni One to U.S. Military Academy at West Point. With U.S. Navy, we signed a cooperative research and development agreement with the Naval Postgraduate School. 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 have talked about before, our board’s 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 million-$50 million range. Specifically, we are 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. Stay tuned for more announcements in this regard. Beyond defense, we are also gaining strong traction in our enterprise business. We sold our first Omni One Enterprise system to Tesla for its Optimus humanoid robot division, that uses the 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 Auggie Award at the Augmented World Expo for best interaction product. Once more, recognizing Omni One, as part of a humanoid’s robot teleoperation system built by University of Central Florida, and is yet another validation of our technology as a key input device for enterprise XR applications. Lastly, we are selected by NASA for their Moon and Mars exploration analog mission. Omni One will support simulated extravehicular activities during this year-long study that will begin in 2007, in which four volunteers will live in a 650 sq ft habitat to simulate astronaut performance during upcoming deep space missions.

The key here is that these enterprise sales, like these, they generate high-margin hardware revenues plus recurring revenue from software licensing and potential services revenue alongside the hardware sale. Our enterprise business is yet another part of our strategy. Lastly, as you know, we have also been exploring the healthcare and therapeutics markets for Omni One, which could be a potential major new vertical for us. We made some major progress there this quarter. We signed a strategic partnership with Sirica Therapeutics to advance AI-driven autism therapy for children. We delivered two Omni One systems to Sirica’s treatment center in the San Francisco Bay Area, and they have announced plans to establish approximately 100 treatment centers nationwide. For context, there are an estimated 12,000 ABA therapy centers in the U.S., and we believe that creates a potential scalable channel for Omni One Enterprise in the healthcare space.

That commercial partnership with Sirica sits on top of our university work that we have discussed previously. Rutgers University WINLAB is applying Omni One to AI-assisted neurodivergent therapy, and they are actively developing an application for autism therapy for kids. At the Florida Gulf Coast University, the Marieb College of Health & Human Services is evaluating Omni One for physical therapy and neurorehabilitation. We believe that full-body movement within AI-enabled environments may play an increasingly important role across next-generation healthcare and therapeutic applications. 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 will hand the call over to Thomas to walk us through the financials.

Thomas McGinnis, Chief Financial Officer, Virtuix Holdings Inc.: Thank you, Jan, and good morning, everyone. Net sales for the first quarter of fiscal 2027 were $767,000 compared to $1 million in the prior year period, a decrease of 26%. As Jan noted, the prior year quarter included the fulfillment of the final batch of the large legacy backlog of Omni One orders accumulated since the start of our pre-order period in August of 2023, whereas revenue in the current quarter resulted from sales to newly acquired customers. New orders for the Omni One actually increased 72% year-over-year, and new orders are up approximately 150% since the launch of our Omni One for Quest in collaboration with Meta. We are seeing this momentum continue in this current quarter. The metric I would like to draw your attention to most is gross margin. Gross profit increased 29% to $227,000 from $176,000 in the prior year period.

Gross margin as a percentage of revenues increased approximately 13 percentage points from 17% in the prior year period to 30% this quarter. That improvement was driven by higher selling prices of the complete Omni One system compared to the prior year period. Turning to operating expenses, total operating expenses increased by $1.9 million or 86% to $4.1 million compared to $2.2 million in the prior year period. That increase was driven primarily by a $2.1 million increase in general and administrative expenses to $3.1 million from $1 million, reflecting the cost of operating the public company that largely did not exist in the prior year quarter, which predates our Nasdaq listing. Within that increase, professional services accounted for $1.2 million, insurance for $0.2 million, and non-cash stock compensation for $0.7 million. Selling expenses moved the other way, decreasing approximately $0.3 million to $0.7 million.

Research and development expenses increased approximately $0.1 million to $0.3 million as we added staff to advance Omni One’s Quest. Loss from operations was $3.9 million compared to $2 million in the prior year period. Net loss for the quarter was $7.2 million compared to $2.3 million in the prior year period. It is important to understand that the composition of that loss, approximately $4 million of that are non-cash charges, including $2.5 million of largely non-cash interest expense, which includes an amortization of debt discount on our convertible notes, a $0.6 million financing expense related to our warrant modifications, and $0.4 million loss on extinguishment of debt, partially offset by a $0.4 million gain on the change in fair value of financial instruments. These items relate to capital that we have raised, not the operating performance of the business.

Net loss per basic and diluted shares was $0.22 compared to $0.28 in the prior year period, reflecting a substantially higher weighted average share count following our listing. We are also presenting adjusted EBITDA, which we define as net loss before interest, income taxes, and depreciation and amortization, further adjusted to exclude stock-based compensation and certain non-cash and non-recurring items. We believe it gives investors a clearer view of the performance of our ongoing operations by removing the financing related and non-cash charges that I just described. Adjusted EBITDA loss for the first quarter of fiscal 2027 was negative $3.1 million compared to negative $1.9 million in the prior year period. The year-over-year change is driven by the step-up in public company operating expenses rather than by unit economics, which improved.

The full reconciliation of net loss, the most directly comparable GAAP measure to adjusted EBITDA, is included in the financial tables of yesterday’s press release. Turning to the balance sheet, cash and cash equivalents were $7.4 million as of June 30th, 2026, compared to $9.5 million at March 31st, 2026, a decline of approximately $2 million. Inventory increased approximately $0.2 million to $1.4 million as we build to support the order growth that Jan has previously described. Net cash used in operating activities was $3.3 million for the quarter compared to $1.5 million in the prior year period, with the increase reflecting the public company costs at step-up and working capital invested in inventory. Total assets were $12.6 million compared to $14.8 million at fiscal year-end.

Total liabilities were $15.7 million compared to $13.7 million, including $10.7 million of notes payable net of discount, compared to $7.8 million at March 31st. Total stockholders’ equity was a deficit of $3.1 million, compared to a positive equity of $1.1 million at fiscal year-end. That $4.2 million change reflects the quarter’s net loss of $7.2 million, partially offset by a $3 million increase in additional paid-in capital from financing and equity activities during the year. We are managing the balance sheet to support the growth opportunity in front of us, and we will continue to evaluate our capital structure with that objective in mind. With that, I’ll turn the call back over to Jan.

Operator: Ladies and gentlemen, please stand by while we reconnect Jan. Please stand by. Jan, please go ahead.

Jan Goetgeluk, Founder, Chief Executive Officer, and Chairman, Virtuix Holdings Inc.: Thank you. Sorry about that. My call dropped for some reason. Are we at slide 16, Priorities and Outlook?

Thomas McGinnis, Chief Financial Officer, Virtuix Holdings Inc.: That’s correct, Jan. Yes, that’s correct.

Jan Goetgeluk, Founder, Chief Executive Officer, and Chairman, Virtuix Holdings Inc.: Thank you. Super. Thank you, Thomas. All right, looking ahead, we have six clear priorities. First, accelerate consumer revenue growth. The order momentum from the launch of Omni One for Quest with Meta is the most important trend in our consumer business today, and our focus is on sustaining that momentum and accelerating revenue growth together with Meta. We believe we’ve only scratched the surface of the marketing opportunities we have with Meta. Second is to advance our defense programs towards larger awards. That means bringing the Marine Corps Infantry Fireteam Trainer to Quantico in the fourth calendar quarter of this year, completing our Air Force Phase I SBIR and aiming to move that to a phase II, advancing our counter-drone trainer toward potential awards, and also exploring additional partnerships and programs that we can be part of. Third is advance our defense M&A.

Now, our objective is to complete one or more acquisitions with $10 million to $50 million of annual revenue that would add government contract vehicles, past performance, sales channels, and recurring defense revenue. Fourth is to expand enterprise sales. We intend to build on the Tesla sale, the NASA collaboration, and all our other recent enterprise traction to grow high-margin Omni One Enterprise sales. Fifth, build out our healthcare and therapeutics vertical, which we believe can become a third large end market for our technology. That means developing the channel with Sirica Therapeutics and other ABA partners and obtaining clinical validation from our university research collaborations. And sixth, ultimately drive toward profitability. We intend to build on this quarter’s 30% gross margin, continue to grow revenue, and add high-value defense and enterprise contracts as we drive towards profitability.

We believe Virtuix is well positioned to convert our current momentum into long-term growth and value for our shareholders. All right. With that, we will now open up the call for questions. Operator?

Operator: Thank you. We will now be conducting a question and answer session. If you would like to be placed into question queue, please press 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press 2 if you would like to remove your question from the queue. One moment please while we poll for questions. Our first question today is coming from Jack Codera from Maxim Group. Your line is now live.

Jack Codera, Analyst, Maxim Group: Okay, great. Good morning, Jan and team. It is great to see the momentum continuing. Maybe I will start with a question, Jan, for some of the key growth drivers you are expecting this year. You touched on the Made for Meta partnership, obviously. That is a big catalyst that I believe just began in June. As we are looking at the back half of this year heading into the holiday season, can you just touch on how this Made for Meta partnership is incrementally adding, I guess, to the game portfolio and the demand strength versus, say, where Virtuix was last year entering the holiday season? Thanks.

Jan Goetgeluk, Founder, Chief Executive Officer, and Chairman, Virtuix Holdings Inc.: Yeah. Hey, Jack. Good morning. Thanks for joining. We are seeing that strong momentum that we reported starting with the launch of our Meta product. We are seeing that continuing this quarter, and we believe that momentum can continue. It is not just a one-time flash in the pan after the launch, as it is looking like right now. It is going to continue. The reason is that if you think about it, Meta sold over 20 million headsets by recent estimates, 6 million active users who can now, for the first time, buy our product directly and use it with their existing headset and games. It is a very nice offering at a good price point, and it expands our addressable market.

That was the plan all along, but it seems to be paying off where it translates to meaningful sales growth and order growth, about 2.5x from what it was before. That is looking promising for the second half of the year, especially going into our holiday period.

Jack Codera, Analyst, Maxim Group: Okay, great. As part of this equation here is going to be the production side of the business. Can you just touch on your capacity today? I think you have been able to produce actually quite a bit of these Omni One’s per month. Has high production started, high volume production, since the Meta relationship was announced? Can you touch on your overall, I guess, capacity expansion and current run rates?

Jan Goetgeluk, Founder, Chief Executive Officer, and Chairman, Virtuix Holdings Inc.: Yep. Our capacity is set up. Our production facility and capacity is well-established. We are certainly now firing on all cylinders, producing units, meeting the demands. On the production side, we are set up and can meet the demand we are seeing. I think we reported before that our production capacity right now is up to 3,000 units a month or so, which would translate to about $100 million in annual revenues.

Jack Codera, Analyst, Maxim Group: Excellent. If we just shift really quick to the defense side. Obviously, you’re talking about your M&A strategy here with you targeting $10 million-$50 million kind of revenue opportunities. It sounds like there’s a few targets in your pipeline. I would say before we get into the acquisitions, can you just touch on kind of what you’re seeing recently with your organic expansion in the defense sector? You’re in every arm of the U.S. government now, I believe. Can you just maybe give an update on what you’re hearing the feedback is from the actual troops that are using this in training modes today? Is there room for expansion and follow-on orders? Thanks.

Jan Goetgeluk, Founder, Chief Executive Officer, and Chairman, Virtuix Holdings Inc.: Yeah, definitely. If you think about it, the military has always had simulators for aircraft. They have simulators for vehicles, tanks. They’ve never before had a simulator for ground troops, for infantry, until today. Thanks to our technology, the Omni, now infantry war fighters can kind of walk around in virtual environments for training, mission planning, mission rehearsal. We believe that’s a revolutionary capability for the U.S. military that it didn’t have before. That’s why we’re seeing all this traction and excitement by the U.S. Marine Corps, by the United States Air Force, and the other branches as well. In a very short, I’d say, a very quick timeframe. I really only started this effort about a year ago, and now we’re already working with all four major branches of the U.S. military involved in various programs or projects and awards that we’re moving forward.

There’s more on the horizon as well. There’s many more various applications where technology can be really useful in the context of military training. The objective here is to move those projects forward to the next phase I SBIR to phase II SBIR, move these pilot programs to potentially bigger awards and bigger roll-outs to military facilities and customers and whatnot. So we see it as a major part of our business that can really drive growth and meaningful revenues, but also margin going forward.

Jack Codera, Analyst, Maxim Group: Jan, if I could ask you just maybe one more follow-up here. There’s clearly a lot of different growth angles here. A lot of irons in the fire with very big, well-established companies, obviously. Made for Meta is obviously an 800-pound gorilla in the space. You also have a lot of real momentum in the defense sector with potential acquisitions on the way. How do you see, I guess, the revenue profile of Virtuix kind of evolving over the next two to five years across these segments? Are they all going to be accelerating kind of hockey stick-like growth? Is one going to come first or faster than the other and then one’s a faster longer-term leg? Just like to get your thoughts there and also how that impacts the gross margin longer term.

Jan Goetgeluk, Founder, Chief Executive Officer, and Chairman, Virtuix Holdings Inc.: Yep. Thank you for that. One thing I keep stressing to the team here and also as our strategy is to stay focused. Certainly, consumer and defense today are our biggest focus areas. Enterprise and healthcare is emerging in the background and growing in the background. I think if you look at timing, consumer is what’s driving most growth and revenues today, and certainly with the big catalyst there being our Meta collaboration. We believe we’re only seeing the start there and scratching the surface of what’s possible there. That is happening today. The defense military business, a lot of traction there, working towards bigger awards, bigger contracts. I think we announced that. To get to bigger awards is probably next calendar year, kind of fiscal year 2028, as we work towards that.

That could come in a step change, where you win a big award. Certainly makes an immediate big impact on revenues. Consumer and defense are our core focus areas. Enterprise is emerging with these various pockets of demand and applications that are very interesting, like the humanoid robots application, that could become a meaningful revenue stream in the future. Healthcare specifically, I believe, could become a third big vertical in addition to consumer and defense. The healthcare market could become a big vertical. It’s not a core focus just yet of our company as we’re moving the development forward with Sirica, with Rutgers. There’s a lot of potential there, specifically with 12,000 or so ABA centers nationwide that could use our technology, plus a private market besides that, is potentially a big vertical. That will come a bit later.

It’s a bit more of a staggered approach, so that we don’t want to get pulled into a thousand directions all at once. We stay focused on consumer, defense, enterprise as it develops, and then healthcare as a potential big market in the future.

Jack Codera, Analyst, Maxim Group: Okay. I really appreciate the color there. That’s it for me. Look forward to tracking the story. Thanks.

Operator: Thank you. Our next question today is coming from Gowshi Shreeve from Singular Research. Your line is now live.

Gowshi Shreeve, Analyst, Singular Research: Good morning, gentlemen. Can you both hear me?

Jan Goetgeluk, Founder, Chief Executive Officer, and Chairman, Virtuix Holdings Inc.: Hey, good morning, Gowshi.

Gowshi Shreeve, Analyst, Singular Research: Yeah, good morning. Jan, congrats on the order number. That is a step up. Can you help me understand the mechanics a bit? When someone places an Omni One order today, roughly how long before it ships? I am trying to figure out how much of that 72% kind of lands in the next quarter versus later.

Jan Goetgeluk, Founder, Chief Executive Officer, and Chairman, Virtuix Holdings Inc.: Yeah, we ship within days. But the launch of the Meta product came in late June, so only a small fraction of that fell in the prior quarter. This current quarter is where we are seeing that momentum continuing. Then those revenues, I think you will see that this quarter.

Gowshi Shreeve, Analyst, Singular Research: Awesome. Okay. You called out the Quest offering to become dominant, so you have got a couple of months of data, and the order growth is mostly a Quest. Is that a complete system holding its own, and does that mix kind of push the margin towards that 40% target?

Jan Goetgeluk, Founder, Chief Executive Officer, and Chairman, Virtuix Holdings Inc.: Yeah. It is not a complete system yet. Omni One for Quest is a standalone Omni treadmill that works with Quest. We are looking at bundling, and that is one of the conversations we are having with Meta, is bundling Omni One for Quest with an actual Quest headset and offering a complete system. But margin-wise, I think we disclosed that we are pushing that margin on our Omni One consumer units on a per unit basis, unit economics basis, to close to 40%. So we are aiming to hold that, and we will see how that evolves over time as the mix changes.

Gowshi Shreeve, Analyst, Singular Research: Gotcha. Someone might have already asked this question. My call just dropped, so I will ask it again. The release mentioned you bundling Virtuix with Meta product. Is that something meaningful that could be live for the holiday season, or is this more of a fiscal 2028 conversation?

Jan Goetgeluk, Founder, Chief Executive Officer, and Chairman, Virtuix Holdings Inc.: It’s a current conversation that we’re having today, so aiming to get that done here. Yeah.

Gowshi Shreeve, Analyst, Singular Research: Okay. On the TECOM delivery timing, you said the Marine firearm trainer. When we spoke last, I think you mentioned the delivery system could be, the first system around September, and now we kind of shifting to the fourth quarter. Is that schedule kind of tightening on their end, or the scope has changed, and does it still land inside this fiscal year for revenue?

Jan Goetgeluk, Founder, Chief Executive Officer, and Chairman, Virtuix Holdings Inc.: Yeah. We were planning to show that and bring that to Quantico in the fourth calendar quarter here this year. With the goal of moving that forward towards a bigger rollout. The timing of that is hard to say. That’s one item of uncertainty with dealing with the government, is the timing of when funds are available, when contracts can move forward. So that is still uncertain. But our aim is to bring this first system here to Quantico in the fourth calendar quarter this year.

Gowshi Shreeve, Analyst, Singular Research: Okay. I know you mentioned the defense revenues could only materialize in fiscal meaningfully. Are we saying, is it a question of what counts as meaningful, or we’re not expecting anything on the defense side in fiscal 2027?

Jan Goetgeluk, Founder, Chief Executive Officer, and Chairman, Virtuix Holdings Inc.: No, we’re expecting some revenues in this fiscal year because of all these various projects that we’re part of under the SBIR phase 1 award, for example. To get to larger contracts where there’s a big rollout to a number of installations or a phase 2 SBIR award, whatever it may be, that I’d say is more likely for the next fiscal year than this fiscal year.

Gowshi Shreeve, Analyst, Singular Research: Gotcha. On the Omni Arena resale rate, I know you did about 150,000. Is that kind of recent? Is it a one-off thing, or is there a real secondary market kind of forming here?

Jan Goetgeluk, Founder, Chief Executive Officer, and Chairman, Virtuix Holdings Inc.: No, the Omni Arena business is a maintenance mode. We continue to serve our existing customers. We continue to get revenues there from Omni Care maintenance agreements, from gameplay, selling replacement parts, secondary sales as well, although I wouldn’t say that that’s a big driver or a big market, but we facilitate that wherever needed.

Gowshi Shreeve, Analyst, Singular Research: Okay. Just my last question, any color on the multiples kind of on the M&A side? I know you said $10 million-$50 million revenue. What are the kind of multiples that those kind of businesses go for?

Jan Goetgeluk, Founder, Chief Executive Officer, and Chairman, Virtuix Holdings Inc.: Yeah, it is on a case-by-case basis, depending on the company and their business and their metrics. It is not a one-size-fit-all answer there.

Gowshi Shreeve, Analyst, Singular Research: Okay. Awesome. Thank you, Jan, and congrats.

Jan Goetgeluk, Founder, Chief Executive Officer, and Chairman, Virtuix Holdings Inc.: Thank you.

Operator: Thank you. Next question today is coming from Andrew White from Emerging Growth Research. Your line is now live.

Andrew White, Analyst, Emerging Growth Research: Morning, Jan. Morning, Tom. I think you had a great quarter. I am looking forward to writing on it. I did have a couple of financial questions. The first one is, you mentioned a change in average selling prices in the quarter, and I am wondering what the new levels are versus the old levels.

Jan Goetgeluk, Founder, Chief Executive Officer, and Chairman, Virtuix Holdings Inc.: Yeah. This is a change that happened a while back, but when we initially launched Omni One, the pricing until, I guess until November last year, was $3,495 for the complete system. Then we had the Omni One Core system. Now that we launched Omni One for Quest, we changed our pricing. Omni One for Quest now is $2,595, Omni One Core is $2,495, and the complete system is $2,995. But before the original pricing, when we sold Omni One units in the pre-order period, those complete systems were sold at $2,595 as a complete system to pre-order customers. That price got increased to $3,495 in November last year.

A lot of the early backlog, the early orders, were sold at a lower price, and we accumulated a large backlog since that pre-order period that I think started in 2023. So it is large backlog that we delivered on throughout several quarters, and some of the early orders there were at a lower pricing, whereas the new pricing that came into effect in November last year was $3,495. So that is where our margin, the primary driver of our margin increasing compared to the periods last year.

Andrew White, Analyst, Emerging Growth Research: Okay. Thank you. As you march towards profitability, what would you say is your cash burn run rate right now?

Jan Goetgeluk, Founder, Chief Executive Officer, and Chairman, Virtuix Holdings Inc.: Yeah, you can do the math. Roughly speaking, I think if you do the calculation, you end up at around $1 million a month. It is a bit elevated since we went public and getting adjusted to being a public company. There is a bit more expenses there, specifically compared to, of course, before going public. We hope to tighten that up a bit. But yeah, I think that is what you can roughly infer from the financials.

Andrew White, Analyst, Emerging Growth Research: Okay. Thank you. Last but not least, I noticed in the Form 10-Q that March 31, 2026 balance sheet is listed as revised. I was wondering if you could detail what that means.

Jan Goetgeluk, Founder, Chief Executive Officer, and Chairman, Virtuix Holdings Inc.: Yeah. That is related to, we changed our auditors, EisnerAmper, a great firm, excited to work with them. They did a review of our quarter, as well as the starting balance of the quarter. Based on their review, we made a few changes there. Not material, so we did a little, or what they call a little R revision. Not related to any of the operational metrics or revenues or costs or nothing like that. It is really only related to the classification of these complex financing instruments that we have and a derivative liability associated with those convertible notes. Highly technical, but that is what that stems from.

Andrew White, Analyst, Emerging Growth Research: That sounds good. Well, thank you very much, guys.

Jan Goetgeluk, Founder, Chief Executive Officer, and Chairman, Virtuix Holdings Inc.: Thank you, Andy.

Operator: Thank you. I would now like to turn the call back over to Mr. Brilkule for his closing remarks.

Jan Goetgeluk, Founder, Chief Executive Officer, and Chairman, Virtuix Holdings Inc.: Thank you, operator, and thank you all for joining us today. I will just close by saying, the first quarter of fiscal 2027, we believe, was one of the strongest commercial quarters in our recent history. Our orders accelerated, our margins expanded, and our technology found its way to the hands of the U.S. Marine Corps, Tesla, NASA, and a growing set of healthcare partners. That is a remarkable range of customers as we expand Omni One beyond just consumer gaming, to becoming a multi-use platform across a variety of industries, consumer, defense, enterprise, healthcare, and more. I want to thank our team, our partners, our shareholders for their continued support, and we are proud of what we accomplished this quarter, and we look forward to providing additional updates in the coming months.

If we were unable to address any of your questions today, please reach out to our investor relations team at MZ Group, and they will be happy to assist. Thank you again for joining us, and have a great day.

Operator: Thank you. That does conclude today’s teleconference. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.