Short Term Trading Weekend Lounge: 12 - 14 Nov, page-15

The global VR market is expected to grow at a compound annual growth rate of 18.0% from 2021to 2028 to reach USD 69.60 billion by 2028.

The following table compares the only two VR Companies listed on the ASX. By no means is the following investment advice, but rather for informative/educational purposes.

	Virtual Reality Co’s on ASX	Vection Technologies ($VR1)	Indoor Sky Diving ($IDZ) Soon to be rebranded to XREALITY Group Limited ($XRG)
1	Market cap	$202mill	$8.5mill
2	Revenue	FY20: $3,138,948 FY21: $3,471,358	FY20: $5,002,087 FY21: $7,265,175
3	Net Profit (NP)	FY20: ($1,038,531) FY21: ($2,742,960)	FY20: ($5,440,247) FY21: $4,062,456
4	Net Assets/Equity	FY20: $6,059,365 12,147,727	FY20: $11,193,544 FY21: $15,287,971
5	Cash	$6.8mill	$817,221
6	Company Info	Vection Technologies Ltd (ASX:VR1) is a multinational software company that focuses on real-time technologies for industrial companies’ digital transformation. Through a combination of 3D, Virtual Reality, Augmented Reality, Industrial IoT, AI, ICT and CAD solutions, Vection Technologies helps companies and organisations to innovate, collaborate and create value.	Indoor Skydive Australia Group Limited is changing to xReality Group Limited. This change reflects an evolution in company direction from indoor skydiving facilities to building physical and digital simulations. Portfolio companies include Indoor Skydiving facilities, Virtual Reality (VR) and Augmented Reality (AR) entertainment, training, and production.
7	Revenue generator	Winning contracts with various sectors seeking VR modeling.	Indoor Sky-diving facilities in Sydney and Gold-Coast FREAK entertainment (VR gaming venues) in Bondi, Macquarie Centre, Penrith and Gold Coast. Winning contracts with schools seeking VR education and military seeking VR training.
8	Growth Story	·FY22 Total Contract Value (TCV) has steadily increased during the quarter to ~$5M. The increase in individual sales to customers was not individually material and are expected to complete with varying dates by the end of December 2021, in addition to subscription and maintenance packages to be invoiced during the current fiscal year with varying payment terms ·Vection has continued to set the foundations for incremental growth within the healthcare & pharma division, media & communication and gain wider market footprint with strategic consultancy partnerships ·Vection also announced the launch of its Webex integrated FrameS solution, a 3D collaborative app enabling hybrid workforces and unique 3D workflows directly within the Webex experience, expected for the second half of the 2022 fiscal year.	·design and create new free roam and arcade style content to suit current and future FREAK venues. FREAK is currently looking at multiple high through-put shorter experiences to suit theme parks, festivals and other high foot traffic areas. ·Operator tactical trainer 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’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. ·The company is currently in discussions with US distributors and is currently finalising it’s go to market strategy, including developing it’s processes and proceedures to comply with industry requirements to be “defence ready”.