XRG news/updates, page-31

I was hoping for a bit more of a bullish forward looking statement from the company, nothing has really changed from the quarterly.

That being said the pipeline has been growing at a fast rate and Operator XR is gaining mainstream attention. I look forward to some bigger contracts and a sales update. We have a sales pipeline currently of $29M. In the short time that the sales team in the US has been operating, they have more than pulled their weight. I have been keeping tabs on the sales team and there have been a few more appointments recently. Also worth noting that quite a few of our sales team have jumped across from InVeris training, a rival XR military/law enforcement training company.

Of the total 4.1M sales from operator XR, only 691k is included in last FY. The other revenue will be split over a 36 month period as this is classed as annual recurring revenue (ARR). But we have spent $1.8M in setting up the sales teams in Australia and the US, which hopefully is a one off cost. Over the next FY we should see our yearly revenue take a nice jump and that’s not including any extra contracts we win!

The entertainment (indoor skydive and FREAK) sector is ticking over nicely and is cash flow positive so nothing to worry about there.