Category: News

News

Operator XR Sales Update November 2024

Post author By xReality Group Ltd
Post date 26/11/2024

We are pleased to present the latest sales performance update for Operator XR.

Operator XR, a wholly owned subsidiary of xReality Group Ltd, provides Military and Law Enforcement agencies around the world with a unique, integrated Mission Planning & Rehearsal System, which is portable, secure, and highly immersive.

Highlights

Operator has sustained acceleration in the global military and law enforcement markets, with continued growth in the United States.

Operator has achieved a substantial boost in sales performance for FY25 year-to-date, with a Total Contract Value (TCV) of $7.13m; this represents a significant increase from $4.1m at the end of FY24, and a 14% increase since 1st October 2024.

Operator XR’s Annual Recurring Revenue (ARR) has also seen a remarkable rise, reaching $3.54m, representing 59% growth compared to EOFY24 and 16% growth since 1st October 2024.

A key driver of this success is the $5.6m project with the United States Department of Defense, which continues to progress as planned. Read article.

These milestones further validate the demand for Operator XR products and demonstrate the capacity for rapid expansion.

"The remarkable penetration of Operator XR across both the Law Enforcement and Military markets, particularly in the United States of America, has continued throughout the early stages of the financial year. The exposure gained through major customers, including the US Department of Defence, is beginning to open new opportunities to other federal agencies and brings further validation to the Operator XR software."

Wayne Jones Chief Executive Officer

Operator XR News & Media

XRG awarded $5.6M subcontract for US Department of Defense

XRG to deliver extended reality training for subterranean and subway environments; contract to create inroads for Operator XR military and police VR systems across 100+ US agencies… Read more.

Operator XR unveil OP-2

Operator XR has launched the next generation in portable, immersive tactical training for Military and Law Enforcement – OP-2. OP-2 combined Operator’s renowned Military and Law Enforcement systems, with a range of new features and capabilities… Read more.

Visit Operator XR.

9 News feature Operator XR

XRG recently invited Nine’s Annalise Bolt to demonstrate how Operator XR tech can drive invaluable, repeatable training that is extremely difficult, expensive, and in some cases impossible, to carry out in the real world… Watch segment.

Market Opportunities

The US remains the largest potential market for Operator XR with over 18,000 Law Enforcement agencies spanning Local, County, State and Federal levels. The average sale price for Operator XR products in the US ranges from $50,000 to $250,000 USD, with most orders paid upfront. Revenue from these sales is recognised monthly over a 3-year period as Annual Recurring Revenue, while project-based revenues are recognised upon meeting milestones.

Looking ahead

As we progress through FY25, we remain committed to building on this strong foundation and delivering sustained success for the business.

We will continue to provide regular updates on Operator XR and how the company is transforming mission planning and rehearsal for Defence and Law Enforcement across the globe.

Tags Augmented Reality, Extended Reality, Operator XR, Sales, Virtual reality

News

XRG awarded $5.6M subcontract for US Department of Defense

Post author By xReality Group Ltd
Post date 13/11/2024

Australian company to deliver extended reality training for subterranean and subway environments; contract to create inroads for its Operator XR military and police VR systems across 100+ US agencies.

xReality Group (ASX: XRG) has announced it has been awarded an AU$5.6 million subcontract as part of Team Endurance Group, for the Irregular Warfare Technical Support Directorate (IWTSD) to deliver extended reality (XR) training capabilities for subterranean and subway environments to the US Department of Defence (DoD).

The company’s Operator XR systems specialise in providing uniquely integrated, secure and highly immersive virtual reality (VR) military simulation and police training systems that enhance human performance in high-risk situations. The technology was meticulously designed by veteran SAS soldiers with deep expertise in advanced VR simulation platforms, backed by years of first-hand front-line experience, to meet the rigorous and specific demands of special forces and public safety roles.

The research and development (R&D) contract for the DoD will see Operator XR deliver a prototype solution including augmented reality (AR) headsets, hardware and software integration into operational weapons and Hazmat suits, with offline capabilities for uninterrupted functionality in underground environments. The project will be delivered over a 20 month period.

“Operator XR will allow Defence users to train for various terrorist events and other threats, using AR to simulate real-world scenarios that can be customised and adapted. This will drive invaluable, repeatable training that is extremely difficult, expensive, and in some cases impossible, to carry out in the real world,” said Wayne Jones, CEO at xReality Group.

“The advantage of Operator XR is that it is inherently easy to use. DoD personnel can quickly create, change and control environments to simulate countless scenarios featuring their service-specific weapons and equipment. This serves as an opportunity to enhance tactics, techniques and procedures at a higher frequency to supplement existing real-world training methods.”

The IWTSD project will be delivered through Team Endurance Group; a teaming agreement with two US-based companies: Endurance Group, serving as prime contractor, and Intermap, a geospatial data and analytics company.

The IWTSD is an innovation division that reports directly into the Secretary of Defence in the DoD. Once a prototype is delivered, a successful project has the potential to transition to full scale production.

About xReality Group

xReality Group Limited (XRG) are leaders in enterprise software development for mission critical simulations for military and law enforcement. The company develops and operates physical and digital simulations. Portfolio companies include Indoor Skydiving facilities, Virtual Reality (VR) and Augmented Reality (AR) entertainment, training, and production.

xReality Group companies include XR production company Red Cartel, Defence simulation company Operator XR, two Australian Indoor Skydiving Facilities, and FREAK Virtual Reality venues.

About Operator XR

Operator XR systems enable Military personnel and Law Enforcement Officers to train operational tactics and procedures within a portable, virtual reality environment. Complimenting existing training methods, the virtual reality system allows end users to train more often, leading to increased preparedness across a broad range of scenarios centred on de-escalation tactics, use of force decision making, and operational procedures. Operator XR has offices in Sydney, Australia, and Virginia, USA.

About Endurance Group

Endurance Group is a Service-Disabled Veteran Owned and Operated Business, providing end user specific and highly specialised subject matter expert staffing services, project management, and training, that focus on tactical, operational, and special activities for the US DoD and other government agencies.

About Intermap

Intermap Technologies is a geospatial intelligence solutions company focused on creating and analysing 3D terrain data to produce high-resolution thematic models of the Earth. The Company’s government solutions include special mission data collection and ISR, feature extraction, change detection and data and analytics delivered through cloud software solutions.

News

xReality Group Quarterly Activities Report: October 2024

Post author By xReality Group Ltd
Post date 12/11/2024

Key Highlights

Highest Cash Receipts for any quarter on record to date.
Cash receipts of $4,303,251, up 40% on Q4.
Continued rapid sales growth of Operator XR (Enterprise) across US and Australian markets
during the quarter:
- Annual Recurring Revenue increased 38% to $3.04M
- Total Contract Value increased 73% for the quarter to $6.2M
- 190 qualified and active sales opportunities with a total sales pipeline of $27.2M
- $5.6M Contract awarded for US Department of Defence Project
Entertainment Sector revenue increase of 16% on Q4 2024

Operational Update by Business Sector

Operator XR – Enterprise Software and Technology

Operator XR continues to grow significantly across the United States and Australia. This includes securing a $5.6 million AUD contract with the United States Department of Defence (USDOD) to deliver an immersive training capability which will enhance xReality Group’s recurring revenue streams over the next 20 months. Additional agreements with multiple police departments and agencies in both regions have driven impressive increases in ARR and Total Contract Value.

ARR Update: The ARR for Operator XR reached $3,041,695, marking a 38% quarterly growth.

Contract Growth: The Total Contract Value for Q1 was $6,248,604, a 73% increase from the previous quarter.

Marketing Efforts: Operator XR’s brand presence has expanded through strategic digital marketing and trade show participation, including:
- IACP conference in Boston, USA
- INL conference in Greece
- Land Forces expo in Australia
Upcoming events include I/ITSEC in Florida, USA, where xReality will present as part of Team Defence Australia (AUSTRADE), and the Shot Show in Las Vegas, USA.

Entertainment Sector – iFLY Indoor Skydiving & FREAK Entertainment

The Entertainment division showed strong quarterly growth, with cash receipts totalling $2.18 million, a 16% rise from Q4. iFLY Downunder (Sydney West) & Gold Coast locations saw a combined revenue increase of $300,000, fuelled by a resurgence in retail and tourism.

Corporate Activity

On October 11, xReality Group secured an additional $500,000 short-term working capital facility from Causeway Financial. This funding is earmarked to bolster inventory and facilitate project acceleration in line with growing demand.

News

9 News Feature Operator XR

Post author By xReality Group Ltd
Post date 27/10/2024

9 News

Operator XR creates a new frontier for military and law enforcement training.

Operator XR gives customers – like the US Department of Defense – the ability to train for various terrorist events and other threats, using AR to simulate real-world scenarios that can be customised and adapted.

xReality Group recently invited Nine’s Annalise Bolt to demonstrate how this tech can drive invaluable, repeatable training that is extremely difficult, expensive, and in some cases impossible, to carry out in the real world.

About Operator XR

News

Operator XR Unveil OP-2

Post author By xReality Group Ltd
Post date 17/10/2024

The World’s most portable immersive tactical training system just got more powerful.

Operator XR, a wholly-owned subsidiary of xReality Group, has launched the next generation in portable, immersive tactical training for Military and Law Enforcement, OP-2.

OP-2 sets a new standard for tactical training technology, combining Operator XR’s renowned Military and Law Enforcement systems, with a range of new features and capabilities. OP-2 offers unparalleled portability and immersive virtual reality training, rapidly developing users’ proficiency in their field.

OP-2 features a diverse training toolkit for all levels of police and dismounted soldiers, with use cases ranging from de-escalation and use of force decision making through to hostage rescue and mission rehearsal.

OP-2 Key Features Summary

Portability: Highly portable system weighing under 40 lbs/18kg in a single 56” case.

Integration: Integrate with users’ own equipment, including rifle, pistol, CEW and spray, for realistic and truly effective training.

Scenario Creator Suite: The powerful new Scenario Creator tool enables you to create fully-customised, fully-controlled, interactive and immersive scenes, with complete control over training outcomes.

Operator Sketch: Sketch unlimited building layouts and accurately recreate real-world floor plans, allowing you to train on any building configuration, no matter how complicated, in minutes.

Operator Create: Access a vast library of scenes and build scenarios with everything you need for a complex and realistic environment. From over 100 interactive props, to fully-dynamic characters and bystanders that react to commands and real-time events, every element is designed for realism.

Advanced Role Player: Dynamic characters include suspects, bystanders and crowds that react to commands and real-time events. Choose from Instructor-controlled characters, or act as real-life suspects using the role player headset, to challenge verbal, de-escalation and critical thinking skills.

After-Action Review Module: Gain deep insights into tactical proficiency, situational awareness, and use-of-force decision-making, helping Instructors assess and improve training outcomes with precision.

Easy to use: User-friendly Instructor tablet, and no backpack computers, base stations, IT staff or specialised skills required.

Secure: A completely offline system with no external internet, ensuring privacy and security with VR equipment that is ISO:27001 compliant with a US DoD Authority to Operate (ATO).

"In the high-stakes world of military and law enforcement, training must evolve to meet ever-changing threats. With OP-2, we're giving Instructors the tools to quickly adapt, control outcomes, and elevate training to an unprecedented new level."

Wayne Jones

CEO

OP-2 empowers Instructors to rapidly move personnel from basic to advanced levels, ensuring training aligns with real-world needs. The system’s innovative modules work together to enhance tactical readiness, enabling agencies to prepare for tomorrows challenges.

Operator XR: Adapt to tomorrows challenges.

Operator XR will be exhibiting at IACP Boston from 20-22 October where OP-2 will be showcased with live demonstrations available. Click below for more information, or visit Operator XR’s website to uncover the full power of OP-2.

Tags Operator XR, Virtual reality, VR

News

xReality Group Annual Report FY24

Post author By xReality Group Ltd
Post date 01/10/2024

Key Highlights

xReality Group Limited (XRG) had a transformative FY24, marked by rapid growth and the successful execution of strategic initiatives. XRG’s Operator XR exceeded expectations, especially in expanding its U.S. presence and building a robust customer base; the year saw a 193% increase in Total Contract Value (TCV) to $4.1 million and a fivefold increase in Annual Recurring Revenue (ARR). By the year’s end, the Operator XR had 29 global customers, including U.S. and Australian law enforcement and government agencies, with strong indicators for future expansion.

Financial Performance and Growth

In FY24, XRG reported a significant increase in revenue driven by strategic investments, cost management, and diversified high-margin projects.

Business Unit Highlights

Operator XR

Operator XR is the fastest growing segment for XRG, focusing on defence and law enforcement agencies across the globe. The total addressable market for Operator XR is valued at US$3.37 billion with the US accounting for nearly 40% of the total market.

FY24 was a breakthrough year for Operator with increased revenue from defence and government contracts, demonstrating the ability to capture opportunities in virtual defence training globally. Operator’s contributions are underscored by steady ARR, secured through multi-year agreements with a number of customers. This unit’s reliable revenue flow enhances XRG’s overall financial stability, especially as it continues to expand its market share within the high-demand military and law enforcement sectors.

Red Cartel

As XRG’s technology and content creation powerhouse, Red Cartel made substantial contributions to revenue by securing high-value contracts in VR and AR solutions. Its custom VR environments for training applications generated a consistent stream of revenue, positioning Red Cartel as a profitable division within XRG.

iFLY Indoor Skydiving

iFLY achieved positive cashflow in a soft retail market, with $1,636k cash receipts throughout the year. Both iFLY facilities were upgraded to more efficient electrical systems, and iFLY Gold Coast was fitted with solar panels to provide further savings on electricity in the future.

FREAK Entertainment

FREAK continued to grow its consumer base with updated VR offerings, reporting an increase in gross receipts from its Arcade games. This unit has strengthened its revenue through subscriptions and frequent player engagement.

Outlook for the Future

Looking forward, we’re optimistic about our growth potential, with a strong focus on further penetrating the law enforcement and defence markets both locally and globally. As immersive technologies continue to evolve, XRG’s position in VR/AR and its innovations in training technology make it well-equipped to capture future market opportunities.

Read the full report below or find out further investor information below.

About xReality Group

xReality Group Limited (XRG) specialises in building and operating immersive XR products and experiences that enhance lives. xReality Group’s portfolio includes physical and digital simulation used across the enterprise, defence and consumer markets. Using technology we create experiences without the physical limitations found in the real world.

News

$5.6M Contract Awarded for US Department of Defense Project

Post author By xReality Group Ltd
Post date 12/09/2024

$5.6M contract awarded for US Department of Defense project

The contract scope is to deliver a new immersive training capability and includes supplying Operator XR system licenses along with R&D services.
The R&D project duration is 20 months commencing 11th September 2024.
The contract presents opportunities for follow on work.

xReality Group Limited (XRG) is pleased to announce it has been awarded a $5.6M AUD contract to deliver a new immersive training capability to the United States Department of Defence. The contract has been awarded to XRG by Acrolect Solutions LLC, DBA Endurance Group, who is serving as prime contractor to the US Department of Defence for the R&D effort.

This project represents the first sale of Operator XR’s immersive training systems to a US Federal Government customer, and will be delivered across a period of 20 months starting 11th September 2024. The contract includes pathways for follow on work within the DoD and broader US Government agencies.

Operator XR, a wholly owned subsidiary of xReality Group Ltd, provides Military and Law Enforcement agencies with a unique, integrated Mission Planning & Rehearsal System, which is portable, secure, and highly immersive.

Recent milestones for Operator XR include:

Annual Recurring Revenue increased 250% to $2.21M
Total Contract Value increased 514% for the quarter to $4.1M
20 new customers acquired during Q4.
162 active opportunities with a total sales pipeline of $24.2M

The award of the US Department of Defence project highlights the increasing demand and market relevance of Operator XR’s solutions and underscores a pivotal year of strategic execution and market penetration.

Tags Operator XR, Virtual reality, VR, xReality GRoup, XRG

News

Operator XR achieves $1,430,000 sales in June 2024

Post author By xReality Group Ltd
Post date 06/07/2024

xReality Group is pleased to report Operator XR has continued its momentum throughout June 2024 achieving some major new milestones.

Highlights

June 2024 proved to be one of Operator XR’s most significant months to date securing an $800,00 Australian Government Agency contract with full payment for the system received and delivery set for Q1 FY2025.

Operator XR also signed a licence extension for the Australian Defence Force trial, which, combined with 5 new customers for the month, achieved $1,430,000 in sales growth; this represents a 75% increase in Operator XR’s Annual Recognised Revenue which now sits at $2,210,000.

“Building off the recent success with the Australian Defence Force, we are excited to be broadening our user base across other agencies in Australia."

Wayne Jones

Chief Executive Officer

The impact of these sales marks a 54% increase in Total Contract Value on May 2024, bringing the FY24 cumulative total to $4,100,000. Operator is focused on continuing this sales trajectory throughout FY25, with a growing pipeline of opportunities being actualised.

The continued momentum with new prospects highlights the increasing demand and market relevance of Operator XR’s solutions. June 2024 saw significant success in New Customers, with 6 joining the Operator XR portfolio, taking the total customers for FY24 to 29.

Market opportunities

Looking ahead

Stay tuned for more updates as we continue to transform mission planning and rehearsal for Defence and Law Enforcement with Operator XR.

"The company is pleased with the continued momentum of sales throughout the month of June. A strong result over the final quarter of FY2024 has positioned the company well with a large pipeline of sales expected to materialize throughout Q1 of FY2025."

Wayne Jones

Chief Executive Officer

Tags Augmented Reality, Extended Reality, Operator XR, Sales, Virtual reality

News

Rapid sales growth of Operator XR

Post author By xReality Group Ltd
Post date 10/06/2024

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.

Tags Augmented Reality, Customers, Expansion, Law Enforcement, Military, Operator XR, Record Breaking, Sales, US, Virtual reality, xReality GRoup, XRG

News

xReality Group Quarterly Activities Report: April 2024

Post author By xReality Group Ltd
Post date 30/04/2024

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.

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.*
  *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.

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.

Tags Augmented Reality, FREAK Entertainment, iFLY Downunder, iFLY Gold Coast, Indoor Skydiving, Operator XR, Virtual reality