Author: Indoor Skydive Australia Group

Indoor Skydive Australia Group Limited (ISA Group) was founded to by two ex-SAS soldiers to bring the joy of simulated human flight to the region.

ISA Group uses world leading technology to construct indoor skydiving facilities which simulate the free fall experience usually felt when skydiving. The specially constructed vertical wind tunnels include a flight chamber which allows individuals or groups to fly within the tunnel and perform aerobatic manoeuvres in a safe and controlled environment. Indoor Skydiving facilities are used by tourists, enthusiast and the military (including the Australian Military) and active skydivers.

Our business model is based on flexible operating hours, low overheads and proven technology which underpin a strong margin of return. The global market for indoor skydiving is estimated to exceed US$1.6 billion in annual revenue by 2025. ISA Group has the key first mover advantage in the region which will assist us in tapping into this significant market.

ISA Group listed on the ASX on 18 January 2013 under ASX code IDZ and is in the process of developing a portfolio of indoor skydiving facilities. Our flagship facility commenced operations in Penrith Sydney in March 2014 under the customer facing brand, iFLY Downunder.

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Rapid sales growth of Operator XR

Operator XR Rapid Sales Growth

xReality Group Limited (XRG) is excited to share the following sales update for Operator XR, a wholly owned subsidiary of xReality Group Ltd. Operator XR provides Military and Law Enforcement agencies around the world with a unique, integrated Mission Planning & Rehearsal System, which is portable, secure, and highly immersive.

 

Expanding U.S. Presence and Market Focus

In late November 2023, Operator XR bolstered its U.S. operations by expanding the sales team. This strategic move was designed to intensify direct sales activities within the Law Enforcement sector, while we continue to develop the Military segment globally. The results of this focus has seen rapid sales growth in the month of May.

 

May 2024: Record-Breaking Achievements

May has been an outstanding month for Operator XR, demonstrating substantial growth across multiple metrics, including year to date total contract value more than doubling, resulting in an Annual Recurring Revenue increase of 107% for the month to $1.26m.

    • Sales Achievement: Operator XR secured $1.93 million in sales, marking a significant monthly performance.
    • Customer Acquisition: We welcomed 12 new customers and achieved our second Australian Defence Force sale, further solidifying our market presence.
    • Contract Value Surge: The total year-to-date contract value has soared by 261% this month, reaching an impressive $2.66 million.
    • Recurring Revenue Growth: Our Annual Recurring Revenue (ARR) experienced a remarkable 107% increase, now standing at $1.26 million. 

Strategic Wins: Law Enforcement and Military Expansion

Second Sale to the Australian Defence Force:

On May 22, 2024, we received a Purchase Order from the Australian Defence Force for the delivery of two systems with a three-year license; further details of this sale remain confidential. This marks the second purchase of the Operator XR system by the Australian Defence Force, separate from the ongoing trial with the broader organisation.

New Law Enforcement Customers in the U.S.

In May 2024, Operator XR received orders from 11 individual Law Enforcement agencies across various states. The customers include Police Departments in Oregon, Maryland, Alaska, Texas, Florida, Ohio, Arkansas, Indiana, and a prominent training organisation based in California. These new partnerships underscore our commitment to providing advanced training and operational solutions to Law Enforcement.

 

Future Focus

Operator XR is focused on continued growth over the coming months and remains committed to delivering cutting-edge solutions that meet the evolving needs of our clients.

 

XRG CEO Wayne Jones said, “The momentum we are currently experiencing, particularly in the US,
is a further validation of the product and market fit. We have established a strong sales culture within
Operator XR, and we are starting to see the results of the Sales, Marketing and Production activities
over the past 6 months.”

 

To view the ASX release, click here: 30 May Operator XR Sales Update ASX release here.

 

Visit the Operator XR website here.

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xReality Group Quarterly Activities Report

Key Highlights
  • Strong sales growth of Operator XR (Enterprise Sector)
    • Six new US Law Enforcement customers since late January including two in early April totalling $583k AUD.
    • 12 potential new sales in Q4, totalling $6.85m total contract value (includes the US Department of Defence proposal valued at c.$5.6m).
    • Software Annual Recurring Revenue increase for Q3 25% to $611k (YTD increase 63%)
    • 133 global opportunities with a total aggregate value of $23.7m
  • Stable and Consistent performance in Entertainment Sector in Australia
    • Military and professional wind tunnel revenue up 10% on Q3 FY23
    • Christmas school holidays results consistent with prior year
    • FREAK Entertainment booking and ecommerce systems upgrade Operational
Update by Business Sector

Operator XR – Enterprise Software and Technology 

The company continued to make progress in the United States Law Enforcement and Military markets over the past three months and continues to achieve major milestones in line with the global expansion strategy.

  • Growth in Annual Recurring Revenue (ARR)
    • ARR grew 25% from $489,936 in Q2 to $610,962 in Q3. With multiple late-stage opportunities in the US, S/E Asia and Australia, the recurring licence fees are expected to continue to ramp in the last quarter of the financial year.
Graph showing Annual Recognised Revenue growth from 2023 to projected in 2024.
  • Growth in US Sales
    • Between late January and the end of Q3, the Company secured 4 more law enforcement customers across Arizona, Illinois, Nevada, and Idaho in the US.
    • Subsequent to the quarter, as at April 19th, the company has won 2 additional US Law Enforcement customers in Georgia and California
    • Total Contract Value of the six new deals mentioned above equal $583k AUD, cash receipts during the quarter totalled $326k AUD which includes the renewal of Garfield County Sherriff’s Department in Colorado, USA. The remaining cash will be received in Q4.
  • Renewal of first US customer contract
    • Due to outstanding feedback on the product, Garfield County Sheriff’s Department in Colorado has committed to renew its contract into the second year, six months ahead of schedule. The County has already completed its first full agency wide training with the system and is acting as a reference customer.
  • LAPD SWAT trial
    • The LAPD SWAT trial was delayed due to some customer changes and is on track to commence in May.
  • Final Stages of US Dept of Defence proposal with an expected contract value of c. $5.6m
    • Operator XR LLC continues in negotiations with the US Department of Defence on development of a ground-breaking R&D proposal with strong prospects for follow on work. 1
      1 There is no guarantee this tender will be successful.
  • Operator XR meets with Department of Homeland Security (DHS)
    • Head of DHS Silicon Valley Investment program invited Operator XR to demonstrate capabilities and discuss potential cooperation with DHS agencies including United States Customs and Border Protection (CBP).
  • Marketing Activities
    • During the quarter, Operator XR generated significant traction across the US market, through focused digital marketing, and exhibiting at relevant trade shows, including:
    • Shot Show in Las Vegas, generating over 200 notable leads.
    • International Law Enforcement Educators Training Association (ILEETA): March 18-20, 2024
    • Texas Chiefs Association: March 25-28, 2024
  • Upcoming events include:
    • IDEC Expo, Mexico City: April 21-25, 2024
    • Special Operations Forces (SOF) Week, Tampa FL: May 5-11, 2024, with Operator XR sponsored by Team Defence Australia (Austrade)

Entertainment Sector

XRG’s portfolio of Entertainment businesses have continued their stable performance throughout the period. The operational cashflow through our existing businesses remains cash flow positive and receipts from customers has remained consistent with prior periods and management expectation.

Column graph showing customer receipts from Q4-23 to Q3-24
  • Military and Professional Revenue Increase 10%
    • iFLY Downunder and iFLY Gold Coast have adopted a strategic partnership approach to bolster their business by aligning with skydiving centres, coaches, governing bodies, and military units. This focus on building close relationships with these stable market segments is proving to be a successful strategy, particularly in increasing customer traffic, occupancy rates, and revenue during typically slower times of the year.
  • Christmas Holidays Trading Period 
    • The school holiday period experienced stable trading conditions, consistent with FY23. With challenging trading conditions, the retail market was slightly down on last year, however this was offset by the successful partnerships and initiatives outlined above.
  • FREAK Entertainment Booking and Ecommerce Systems Upgrade
    • All FREAK Entertainment Systems have been migrated to the world leading FMX Systems in line with the rest of XRG’s Entertainment Portfolio. The migration will create operational efficiencies and cost savings across the business.
READ ASX RELEASE
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xReality Group expands Operator XR to Mexican Market

xReality Group expands Operator XR to Mexican Market

xReality Group Limited (ASX:XRG) is pleased to announce that it has formalised a partnership with a key technology partner in Mexico for the distribution of Operator XR’s VR technology for Law Enforcement and Military markets.

 

Tecnología en Sistemas de Apoyo SA (TSA) are a trusted provider to State Police and Judicial agencies across Mexico, having successfully designed, built and implemented the standard judicial recording system used across the majority of Mexican states. Founded in 1999, TSA is a skilled technology services company, trusted by Mexico state agencies, and offers Operator XR access into key Law Enforcement Agencies across Mexico.

 

Mexico Law Enforcement consists of 2 Federal, 31 State and over 1800 Municipal Agencies, that also encompass Military units performing a Law Enforcement function, including the Mexican National Guard. In total there are approximately 500,000 police officers across the country. Operator XR and TSA have together identified a business development pipeline in 2024, giving rise to the formalisation of this partnership.

 

Operator XR’s Law Enforcement Training Simulators allow Police and Law Enforcement agencies to train operational tactics and procedures using a highly portable, easy to use and incredibly realistic Virtual Reality system that does not require internet, is highly secure and easily configurable.

 

Virtual Reality based training with Operator XR technology offers a low cost, and lower risk alternative to traditional training approaches, reducing demand on staffing resources. The technology increases trainee throughput and allows higher levels of training repeatability, with simpler and easier access to training at any time, in any location.

 

Wayne Jones, CEO, XRG, said “Following significant interest in Operator XR from numerous Mexican law enforcement agencies and military, we are excited to announce the growth of our distribution network through local market leader TSA, enabling the supply and support of Operator XR on the ground in Mexico.” 

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LAPD SWAT sign for Trial of Operator XR Technology

LAPD SWAT sign for Trial of Operator XR Technology

  • Operator XR has been accepted by Los Angeles Police Department (LAPD) SWAT for a trial of its Virtual Reality Tactical Training solution.  
  • Commencing in February, the trial will run for 3 months, and be used by the 67 SWAT members and team commanders of the LAPD SWAT Team, Metro Division. 
  • LAPD SWAT is known as one of the foremost police tactical units in the world, earning hundreds of commendations and citations, including several Medals of Valor, the Department’s highest award for heroism in the line of duty. 
  • Operator XR technology will be assessed and reviewed as a training system to supplement and enhance current SWAT training, in support of the teams roles and responsibilities towards upholding public safety. 
     

Following extensive demonstrations during Q1 FY24, the Department requested a formal trial of the technology, over a 3 month period expected to commence in February 2024. The trial will integrate Operator XR technology into the current SWAT training program, gather more sustained exposure to team members and commanders, for the purposes of assessing a fit into the SWAT training programs.  

 

Operator XR will allow LAPD SWAT to train operational tactics and procedures using a system which is a highly portable, easy to use and realistic Virtual Reality system that does not require internet, is highly secure and easily to use.  

 

Virtual Reality based training with Operator XR technology offers a low cost, and low risk approach to traditional training approaches, reduces demand on staffing resources and at the same time increases officer exposure and throughput to high intensity, high stress virtual situations that increases and enhances situational awareness, leading to improved outcomes in high risk law enforcement situations.  

 

This system will enable LAPD SWAT to plan and train active shooter scenarios, hostage rescues, and crisis interventions which can be difficult to train using traditional methods.  

 

Operator XR software has been developed by xReality Group, using the latest innovations in Virtual Reality technology, coupled with the considerable expertise of XRG management in former career duties in front line Military and Policing.  

 

XRG will not charge LAPD SWAT to use the Operator XR technology during the 3 month trial period, but are confident that the success of the trial will lead to revenue earning opportunities from this and other follow up arrangements with other US State and Federal law enforcement agencies.  

 

LAPD SWAT said “We are looking forward to extensive testing of Operator XR with our team over the coming 3 months, this trial will help us understand how technology can complement our current training programs, and enhance the public safety outcomes.” 

 

Wayne Jones, CEO, XRG, said “Building on the momentum of Operator XR in the USA, a trial with the Los Angeles SWAT for our VR training systems is a huge step for XRG. Trialling Operator XR, the  highly advanced VR tactical rehearsal system, with one of the worlds most respected tactical policing agencies, is expected to open significant opportunities. It’s a major test of our technology in a critical environment, and we’re ready to show its impact on tactical training and operational readiness.” 

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Veritas Equity Research Report

Operator Product

Veritas Equity Research Report - July 2023

Contained in the following document is a detailed report for xReality Group’s current equity as researched by Veritas group. Please click the download button to receive a copy of the 19-page document.

DOWNLOAD
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ISA Group Ltd to become xReality Group Ltd (ASX:XRG)

xRG Logo

Indoor Skydive Australia Group Limited (ASX:IDZ) (ISA Group) is pleased to announce the release of the formal name change as resolved at the FY2021 Annual General Meeting.


The change in name aligns with the company’s growth strategy and broadening of services on a global scale.


The Board of Directors would like to thank those that attended the AGM on the 30th November which supported the change of name from Indoor Skydive Australia Group Ltd to xReality Group Ltd.

The passed resolution has been submitted to ASIC and has now been formally approved. Over the coming days, we expect the change to be updated on the ASIC website. The ASX has also informed that they will be updating their systems on the 8th of December to change the ticker code from (ASX:IDZ) to the new code (ASX:XRG). The company maintains the same ABN and ACN with no other changes affecting current shareholders.


The new website will be live at xrgroup.com.au, and the old website will redirect through to this.

“The change of name clearly aligns with our future growth strategy and marks the beginning of an exciting journey for the company and shareholders” said Wayne Jones, CEO.”As soon as the formalities are complete, the company will launch its new website xrgroup.com.au, where we will continue to keep our shareholders and customers up to date on the portfolio of companies under the new entity.”

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FREAK Macquarie Centre Opens, launching FREAK Drive.

Indoor Skydive Australia Group Limited (ASX:IDZ) (ISA Group) is pleased to announce that FREAK Entertainment has opened its fourth venue today at Macquarie Centre in Sydney.


Macquarie Centre, based in North Ryde, is a leading Sydney shopping centre, servicing corporate headquarters, Macquarie University and a large local area population. The centre is close to train lines, buses, and the new Sydney metro. FREAK is located on level 4, near Timezone, cinemas and dining.


FREAK Macquarie includes FREAK’s flagship free roam VR “Arena”, with games Arizona Sunshine Arena and Ghost Patrol. Both games are exclusive to FREAK in Australia. In addition, the venue will feature Assassins Creed themed VR escape rooms, and a VR Arcade.

The Macquarie venue also launches FREAK’s new motor racing simulator product, FREAK Drive, providing ultra realistic racing simulation using cutting edge technology first revealed at the 2020

Consumer Electronics Show (CES) in Las Vegas. FREAK Drive allows up to 4 players to race over 80 major circuits from around the world in over 170 real world race and street cars. The circuits have been laser scanned into the game providing sub millimeter accuracy of the tracks, with the physical simulators providing full motion allowing players to feel acceleration, braking and cornering. FREAK Drive will be rolled out to the Penrith and Bondi venues prior to December school holidays providing incremental venue capacity.


“After a brief pause due to Covid, it is great to be able to bring Freak Entertainment to Macquarie Centre in time for the holidays. The high demand for our products in major shopping centres continues to increase and we look forward to announcing the next location to be opened in early 2022.” said Wayne Jones, CEO.

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Director Appointment of Mark Smethurst

Indoor Skydive Australia Group Limited (ASX:IDZ) (ISA Group) announces the appointment of Mark Smethurst DSC, AM as a non-executive director of the company.

Mark Smethurst DSC, AM


Mark Smethurst, is an accomplished senior executive leader, with a highly successful track record commanding large and diverse teams both in Australia and overseas.


Mark has commanded at all levels including Squadron in the Special Air Service Regiment, the Special Forces Training Centre, the 2nd Commando Regiment and the Deputy Commander of Australian Special Forces Command. He Commanded the NATO Special Forces in Afghanistan and was the Deputy Chief of Operations for the United States Special Operations Command. 


Prior to leaving the Australian Defence Force in March 2017 he was Head of Preparedness/Director General Joint Force Analysis, responsible for developing Futures Concepts, Experimentation, Lessons and Preparedness.


Mark’s current positions include Non-Executive Director of ASX listed Defence manufacturing company XTEK (ASX:XTE), Non-Executive Director of Defence technology company Kord, Advisory Board member of the Global SOF Foundation in the US and Chairman of the Commando Welfare Trust.


Wayne Jones, CEO ISA Group, commented: “Mark’s experience dealing with Australian and International Defence and supply chains will be invaluable to ISA Group over the next few years as we execute our go-to-market strategy for our military and law enforment simulatiion products.”


Mark Smethurst added: “Defence forces globaly are transforming the way they train and fight, rapidly adopting immersive technologies such as Virtual and Augmented Reality based simulation.  I am excited to be in a position to help drive this capability through my directorship with ISA Group.”


A comprehensive process including an evaluation of the current Board member’s competencies, skills and experience, was followed before the appointment of the new director.  As part of the remuneration package, Mark will receive a contractual entitlement to the issue of 1m service rights subject to shareholder approval, entitling 1 ordinary share per service right on exercise.  The rights will vest over two years with 50% in 12 months and 50% in 24 months, subject to vesting conditions.

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FREAK launching at Macquarie Centre in Sydney

FOURTH FREAK VENUE TO OPEN LATE NOVEMBER 2021

We are pleased to announce that FREAK Entertainment is opening its fourth venue, FREAK Macquarie Centre, in late November 2021.

ISA Group have entered into agreements with centre owner AMP Capital for a 5 year lease of the retail site, located in the affluent north shore area of Sydney.

Macquarie Centre, based in North Ryde is a leading Sydney shopping centre, servicing corporate headquarters, Macquarie University and a large local area population. The centre is close to train lines, buses, and the new Sydney metro.

FREAK Macquarie is a 127m2 venue that will include FREAK’s flagship free roam “Arena”, with games Arizona Sunshine Arena and Ghost Patrol. Both games are exclusive to FREAK in Australia.

In addition, the venue will feature a 4 player Assassins Creed themed VR escape room, and 4x full motion VR racing simulators with world leading car racing game Project Cars Pro.

The facility will be located on Level 4 within the entertainment hub of the shopping centre. FREAK will enjoy extended trading hours within close proximity to Timezone, cinemas, a premium gym and dining areas.

The cutting edge VR technology is being delivered by HP and HTC Vive, whom FREAK has established strategic partnerships with over the last 2 years.

“After a brief pause due to lockdowns, we are excited to continue with the FREAK rollout in line with the company’s strategy, and to have FREAK’s fourth location open in time for the summer holiday period. We expect the trading to reach record levels as consumers come out of lockdown and enter the school holidays across NSW” said Wayne Jones, CEO.

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Launch of Operator Tactical Solutions

Training and simulation products for the global defence market.

 

Operator builds training and simulation products for global defence and law enforcement agencies, using Virtual Reality and Augmented Reality technologies.

 

Operator was created to solve the problem of integrating training with technology, increasing soldiers performance and complementing existing training systems. Operator, a wholly owned subsidiary of ISA Group, has been established to capture Defence and related projects within the company.

 

Operator’s first product is a “free roam” Virtual Reality based tactical training solution, that allows tactical teams to train drills without the need for specialised facilities. The product prototype is complete and a minimum viable product will be ready by November 2021 for field testing. Pilots are being targeted towards Australian and US Special Forces in late 2021. Red Cartel, ISA Group’s inhouse Virtual Reality production company is developing the system.

 

“Given the company’s deep roots and experience in the Australian Defence force and special operations, we see this as a natural fit and additional offering to our current training relationships. With a product roadmap which includes law enforcement de-escalation training, tactical planning tools and other live operational support, we are excited to announce the launch of Operator Tactical Solutions.” – Wayne Jones.

 

Read the full ASX release here.