Good morning, and welcome to the Virtuix Earnings Conference call for the first quarter of fiscal year 2027, ended June 30th, 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 and are not guarantees of future performance and they 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. Thank you for joining us. 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'll turn the call over to Mr. Goetgeluk. Please go ahead, sir.

Thank you, operator, and good morning, everyone. Thank you for joining us. First, let me share a brief note on timing. We recently changed auditors. We appointed Eisner Amber as our independent registered public accounting firm. They're consistently recognized as a leading mid-tier accounting and advisory practice. So we're really excited to work with them. Now, the transition required additional time to complete the quality review, and that's what pushed back our filing by a few days. But our formal thank you has now been filed. And now let's review our results for the first quarter of fiscal year 2027. I'd say that this first quarter was one of the strongest commercial quarters in our company's recent history. And 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. And our technology enables natural full-body movements in 360 degrees. Thank you very much. Healthcare, and other enterprise applications. And we have Virtual Terrain Walker, 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 developments. 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 OmniOne Enterprise System to Tesla, were selected by NASA for a year-long Moon and Mars mission. We became the lead systems integrator on the U.S. Marine Corps trading project. And of course, we launched or made for Meta certified products in collaboration with Meta. So that's a meaningful validation for a platform that initially began in consumer gaming and now is expanding across various end markets. So 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 OmniOne systems increased 72% year over year, and new orders are up approximately 150%, roughly two and a half times compared to the same period last year. Since our June launch of OmniOne for Quest in collaboration with Meta. So those are some great growth numbers on the older side. On unit economics, gross profit increased 29% year over year and gross margin expanded to 30% from 17% in the prior year period. So approximately 13 percentage points of improvement. And we ended the quarter with $7.4 million of cash. Strategically, this was a very eventful quarter. We launched our made-for-meta product 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 trainer for the U.S. Marine Corps. 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 OmniOne in autism therapy for children. One point of clarification before Thomas gets into the numbers later. A 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 only 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. And we believe new orders are the better forward indicator of the demand we are seeing today. So let me stay on that point because I think that's the most important trend in our business right now. So we officially launched OmniOne for Quest in collaboration with Meta in late June. And through that Made for Meta program, OmniOne is certified for the Meta ecosystem, for the Quest ecosystem. Meta sold more than 20 million Quest headsets, giving OmniOne access to the world's largest XR user base with an estimated six million active users. and those users now can pair OmniOne with their existing headsets and game library that they already own in a plug and play experience. So this materially expands our addressable markets. And the effect on our order profile was immediate. New orders are up approximately 150% since that launch. And 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 Vertux products so we can offer a complete system, OmniOne for Quest, plus a Quest headset to gather to customers. So we believe we've only scratched the surface of the opportunities of our collaboration with Meta. Turning to defense, as I mentioned Virtuex is serving as the lead systems integrator for the development of an infantry fireteam trainer for the U.S. Marine Corps, supported by our strategic partner KBR. And this is an important distinction. This is not Virtuex 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. Now, that system puts a four-person, a four-marine fire team on omnidirectional treadmills using M4 rifle surrogates and MetaQuest 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. and delivery to the U.S. Marine Corps in Quantico, Virginia is expected in the fourth quarter of 2026. Now to clarify this infantry fire team 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 future realistic walkable geospecific terrain. You know, it cuts the time to build virtual worlds from weeks to merely hours. That's VTW. That's a system that uses the slogan, you know, want to trade before you fight on it. Explore the battlefields before we put boots on the ground. And VTW, that's a system for which we received a phase one CBER 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. OmniOne has been integrated into Leetech's Counter-UAS Personal Trainer, which is an AI-enabled platform that recreates military training ranges for realistic counter-drone marksmanship training. So 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. So that system will be evaluated by the U.S. Marine Corps Training and Education Command in Quantico, Virginia, with teams from 29 Palms and Camp Pendleton. Counter-drone training, needless to say, is among the fastest-growing priorities of Western militaries today. So this is an exciting development for us. So here's 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 a NAVWORKS Sibber Phase I Award for VTW. And we've 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 OmniOne system to a Pennsylvania Air National Guard unit in Horsham for evaluation of our system for virtual reality military training. And that's our first Air National Guard deployment. As mentioned previously, we're also the lead systems integrator on the infantry fire team 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've sold only one to U.S. Military Academy at West Point. And with U.S. Navy, we signed a cooperative research and development agreement with the Naval Postgraduate School. So 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've talked about before, our board 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 to $50 million range. And so specifically, we're 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. So stay tuned for more announcements in this regard. All right, beyond defense, we're also gaining strong traction in our enterprise business. We sold our first OmniOne enterprise system to Tesla for its Optimus humanoid robot division that uses a 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 Augie Award at the Augmented World Expo for Best Interaction Product. Once more, recognizing OmniOne as part of a humanoid robot tail operation system built by the University of Central Florida. and this is yet another validation of our technology as a key input device for Enterprise XR applications. Lastly, we were selected by NASA for their Moon and Mars Exploration Analog Mission. OmniOne will support simulated extravehicular activities during this year-long study that will begin in 2007 in which four volunteers will live in a 650 square foot habitat to simulate astronaut performance during upcoming deep space missions, deep space missions. And so the key here is that these enterprise sales like these, it generates high margin hardware revenues plus recurring revenue from software licensing and potential services revenue alongside the hardware sale. So our enterprise business is yet another part of our strategy. And lastly, as you know, we've also been exploring the healthcare and therapeutics markets for OmniOne, which could be a potential major new vertical for us. And we made some major progress there this quarter. We signed a strategic partnership with Sirica Therapeutics to advance AI-driven autism therapy for children. And so we delivered two OmniOne systems to Sirica's treatment center in the San Francisco Bay Area. and they've announced plans to establish approximately 100 treatment centers nationwide. Now for context, there are an estimated 12,000 ABA therapy centers in the US. And we believe that that creates a potential scalable channel for only one enterprise in the healthcare space. Now that commercial partnership with Sirica sits on top of our university work that we have discussed previously. Rutgers University, WinLab is applying OmniOne to AI-assisted neurodivergent therapy, and they are actively developing an application for autism therapy for kids. And at the Florida Gulf Coast University, the Marriott College of Health and Human Services is evaluating OmniOne for physical therapy and neurorehabilitation. Now, we believe that full-body movements within AI-enabled environments may play an increasingly important role across next-generation healthcare and therapeutic applications. So 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'll hand the call over to Thomas to walk us through the financials.

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 OmniOne 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 OmniOne actually increased 72% year-over-year and new orders are up approximately 150% since the launch of our OmniOne for Quest in collaboration with Meta. We're 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 OmniOne 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. And 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 OmniOne's request. Loss from operations was $3.9 million compared to $2 million in the prior year period. met loss for the quarter was $7.2 million compared to $2.3 million in the prior year period. And 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 $.6 million financing expense related to the 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, 22 cents compared to 28 cents 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 gap 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 30, 2026, compared to $9.5 million at March 31, 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 that 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. And 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 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.

And with that, I'll turn the call back over to Jan. Please, Jan, please stand by. We'll reconnect Jan. Please stand by. Jan, please go ahead.

Thank you. Sorry about that. My call dropped for some reason. Are we at slide 16, priorities and outlook?

That's correct, Jan. Yes, that's correct. Thank you. Super. Thank you, Thomas.

All right. Well, looking ahead, we have six clear priorities. First, accelerate consumer revenue growth. The order momentum from the launch of OmniOne 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. And 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 Fire Team Trainer to Quantico in the fourth calendar quarter this year. Completing our Air Force Phase I SIBR 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. Our objective is to complete one or more acquisitions with $10 million to $15 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 OmniOne 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 Circa 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 Virtuex is well-positioned to convert our current momentum into long-term growth and value for our shareholders. All right, with that, we'll now open up the call for questions. Operator?

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

Okay, great. Good morning, Jan and team. This is great to see the momentum continuing. You know, maybe I'll start with a question, Jan, for some of the key growth drivers you're expecting this year. You touched on the Made for Meta partnership, obviously. That's a big catalyst that I believe just began in June. As we're looking at the, I guess, the back half of this year, heading into the holiday season, can you just touch on how this Made for Meta partnership, I guess, is incrementally adding, I guess, to the game portfolio and the demand strength? versus, say, where Virtuops was last year entering the holiday season.

Thanks. Yeah, hey, Jack. Good morning. Thanks for joining. Yeah, we're seeing that strong momentum that we reported starting with the launch of our meta product. We're seeing that continuing this quarter, and so we believe that that momentum can continue Thank you very much. That was the plan all along, but it seems to be paying off where it translates to meaningful sales growth and order growth, 2.5x from what it was before. So that is looking promising for the second half of the year, especially going into our holiday period.

Okay, great. And as part of this, I guess this equation here is going to be the production side of the business. Can you just touch on your capacity today? I think you've been able to produce actually quite a bit of these Omni Ones per month. Has high production started, high volume production since the meta relationship was announced? And just can you touch on your overall, I guess, capacity expansion and current run rates?

Yep, yep, our capacity is set up, our production as well, production facility and capacity is well established. We are certainly now firing on all cylinders, producing units, meeting the demands, but on the production side, we are set up and can meet the demand we're 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.

Excellent.

And then, you know, if we just shift really quick to the defense side, then obviously you're talking about your M&A strategy here with targeting 10 to 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, though, can you just touch on kind of what you're seeing with 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 in follow-on orders? Thanks.

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 or infantry units. Until today, thanks to our technology, the only infantry warfighters can walk around in virtual environments for training, mission planning, mission rehearsal. And we believe that's a revolutionary capability for the U.S. military that it didn't have before. And that's why we're seeing all this traction and excitement by the Marine Corps, by the Air Force, and the other branches as well. In a very Thank you very much. and so the objective here is to move those projects forward to the next phase, phase one CBER to phase two CBER, move these pilot programs to potentially bigger awards and bigger rollouts 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.

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 big, very big, well-established companies, obviously. Made for Meta is obviously an 800-pound gorilla in the space. But then 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? I'd just like to get your thoughts there and also how that impacts the gross margin longer term.

Yep, yep, thank you for that. Yeah, it's... And by the way, 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. And an enterprise and healthcare is emerging in the background and growing in the background. I think if you look at timing, I mean, consumer is what's driving most growth and revenues today. And certainly with the big catalyst there being our meta-collaboration and we believe we're only seeing the start there and scratching the surface of what's possible there. So that is happening today. The defense military business, a lot of traction there, working towards bigger awards, bigger contracts. That will, I think we announced that, that's probably to get to bigger awards is probably next calendar year, kind of fiscal year 2028 as we work towards that. but that could come in a step change where you win a big award certainly makes an immediate big impact on revenues. And so consumer and defense are core focus areas. But an enterprise is emerging with these various pockets of demand and applications that are very interesting like the human robots application that could become a meaningful revenue stream in the future. And in healthcare specifically, 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, but 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. It's potentially a big vertical, but 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, enterprises and develops, and then healthcare as a potential big market in the future.

Okay, I really appreciate the color there. That's it for me. Look forward to tracking the story. Thanks.

Thank you. Our next question today is coming from Gauchy Shreve from Singular Research Alliance. He's now live.

Good morning, gentlemen. Can you both hear me?

Hey, good morning, Gauchy.

Yeah, good morning. Jan, congrats on the order number. That's a step up. Can you help me understand the mechanics a bit? When someone places an OmniOne order today, roughly how long before it ships? I'm trying to figure out how much of that 72% kind of lands in the next quarter versus later?

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. So really, this current quarter is where we're seeing that momentum continuing. And then those revenues, I think you'll see that this quarter.

Awesome. Okay. And you called out the Quest offering to become dominant so that you haven't got a couple of months of data and the auto 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?

Yeah, it's not a complete system yet. OmniOne for Quest is a standalone Omni treadmill that works with Quest. We are looking at bundling, and that's one of the conversations we're having with Meta is bundling OmniOne for Quest with an actual Quest headset and offering a complete system. But margin-wise, I think we disclosed that we're pushing that margin on our OmniOne consumer units on a per-unit basis, a kind of unit economics basis. to close to 40%. So we're aiming to hold that. And we'll see how that evolves over time as the mix changes.

Yes. Someone might have already asked this question. My call just dropped. So I'll ask it again. The release mentioned you bundling Vertrix with Metaproducts. Is that something meaningful that could be live for the holiday season, or is this more of a fiscal 28 conversation?

It's a current conversation that we're having today, so aiming to get that done here, yeah.

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're kind of shifting to the fourth quarter. Is that Thank you very much.

Now, the timing of that is hard to say. That's one item of uncertainty when 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.

Okay. And I know you mentioned the defense revenues could... could only materialize in fiscal meaningfully. So are we saying, is it a question of what counts as meaningful or are we, we're not expecting anything on the defense side in fiscal 27?

No, we're expecting some revenues in this fiscal year because of all these various projects that we're part of under the Syberface One Award, for example, but to get to and others. And on the Omni Arena resale rate, I know you did about $150,000. Is that kind of resale

Is that a one-off thing, or is there a real secondary market kind of form in here?

No, the Omnicare business is a maintenance mode. We continue to serve our existing customers. We continue to get revenues there from Omnicare 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.

And just my last question, any color on the multiples kind of on the M&A side? I know you said 10 to 50 million revenue. What are the kind of multiples that those kind of businesses go for?

Yeah, I mean, it's on a case-by-case basis, depending on the company and their business and their metrics. So it's not a one-size-fits-all answer there.

Okay, awesome. Thank you, John, and congrats.

Thank you.

Thank you. Our next question today is coming from Andrew White from Emerging Growth Research. Your line is now live.

Morning, Jan. Morning, Thomas. I think you had a great quarter. I'm 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. I'm wondering what the new levels are versus the old levels.

Yeah, this is a change that happened a while back, but when we initially launched OmniOne, you know, you didn't do pricing until... I guess until November last year was $3,495 for the complete system. And then we had the OmniOne Core system. Now that we launched OmniOne for Quest, we changed our pricing. OmniOne for Quest now is $2,595. OmniOne Core is $2,495. And the complete system is $2,995. But before the original pricing, When we sold OmniOne units in the pre-order period, those complete systems were sold at $2,595 as a complete system to pre-order customers. And that price got increased at $3,495 in November last year. And so 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's where our margin, the primary driver of our margin increasing compared to the periods last year.

Okay, thank you. As you march towards profitability, what would you say is your cash burn run rate right now?

Yeah, I think you can do the math. Roughly speaking, I think if you do the calculation, I think you end up at around a million dollars a month. It's a bit elevated since we went public and getting adjusted to being a public company. There's a bit more expenses there. specifically compared to, of course, before going public. And we're hoping to tighten that up a bit. But yeah, I think that's what you can roughly infer from the financials.

Okay, thank you. And last but not least, I noticed in the 10Q that March 31st, 2026 balance sheet is listed as as revised. I was wondering if you could detail what that means.

Yeah, that's related to... You know, we changed our auditors, Eidner Amper, great firm, excited to work with them. And then, you know, they did a review of our quarter, as well as the starting balance of the quarter. And based on their review, we made a few changes there. Not material, so we did a little, what they call a little R revision. not related to any of the operational metrics or revenues or costs or nothing like that. It's really only related to the classification of these complex financing instruments that we have and derivative liability associated with convertible notes. It's highly technical, but that's what that stems from.

That sounds good. Well, thank you very much, guys.

Thank you, Andy.

Thank you.

I would now like to turn the call back over to Mr. Goetgeluk for his closing remarks.

Thank you, Operator, and thank you all for joining us today. I'll 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. So that's a remarkable range of customers as we expand OmniOne 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 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.

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.