Mr. Shabeer Sinnalebbe of XR Immersive reports

XR IMMERSIVE TECHNOLOGIES CORPORATE UPDATE

XR Immersive Tech Inc. has provided a corporate update on the achievements in 2023 and a look forward to goals for 2024.

"Filled with milestones, challenges and growth, this past year has been a testament to our commitment to our customers, being in the forefront of technology and the ability to withstand the challenges that are taking place all over the world while innovating at the same time," said A. Shabeer Sinnalebbe, chief executive officer of XR Immersive.

Business update

In the six months ended June 30, 2023, the company wound down its Uncontained business with the final project concluding in the period. The primary focus of XR Immersive has been the Synthesis VR (SVR) business moving forward.

The Synthesis VR software platform is one of the largest virtual reality out-of-home entertainment marketplaces for games, educational and training experiences worldwide. Synthesis has over 450 VR arcades globally and a market of over 400 VR games.

• The company's focus is to build leading software and distribution capabilities that will establish its accelerated growth in the fast-growing $140-billion VR/AR (augmented reality) market.
• The SVR software engine provides everything the modern VR arcade and family entertainment centre needs to power its VR experiences, a vital component of many locations internationally.
• SVR is the only platform that supports free roam, room-scale and Android-based tetherless virtual reality entertainment, a gold standard for VR arcade operators.
• SVR provides over 400 games and other experiences available through its extensive store catalogue.
• SVR supports over 450 entertainment centre clients with locations across Europe, North America, India, Southeast Asia and Latin America.
• SVR software platform manages all guest bookings, payment processing and game licensing, which supports multiple billing options such as pay-per-minute, monthly and a combination of both, self-serve in headset game launcher, membership and player tracking, leaderboards that include e-mail offers directly targeted to the client, and many more client-friendly offerings.
• SVR, in addition to the entertainment market, also provides educational content to locations that want to diversify from the entertainment market.
• SVR also provides education, training, and research and development services in the enterprise sector.

Key achievements:

• Foraying into game development: Following the success of Propagation: Top Squad, Synthesis VR partnered with WanadevStudio in developing and launching Propagation: Top Survivors;
• Local manager: A state-of-the-art application to simplify management and content licensing;
• An agnostic platform that supports Android and Windows VR headsets;
• Game publishing and distribution;
• Synthesis VR platform overhaul;
• VR enterprise training;
• VR MDM (mobile device management) services for corporate/enterprise customers: Currently adapting services to be offered as software-as-a-service on AWS Marketplace;
• AI-powered creative agency: Building products and content ranging from creating AI influencers to a new pilot film that uses AI to craft its visual effects.

The virtual reality landscape

The VR location-based entertainment industry is in a constant state of flux, evolving at a rapid pace. Technological advancements played a pivotal role, with VR hardware reaching new heights of sophistication and accessibility. Meta Quest 3 and advanced HTC and PICO models and devices provided VR arcades with enhanced capabilities to deliver immersive experiences. There is an unmistakable sense that VR is now aligning with its full potential, poised for widespread adoption among both consumers and businesses.

The newfound ability to enhance throughput in entertainment centres, the advancement in Wi-Fi 6e and 5G technology contributing to reduced latency, and improved connectivity, coupled with the opportunity to start a business with minimal investment and technical expertise, has liberated the VR industry from constraints.

Furthermore, the adoption of augmented reality (AR) and mixed reality (MR) elements within VR experiences added a layer of versatility to the technology. This integration allowed for more dynamic and interactive storytelling, offering users a seamless blend of real and virtual elements.

"Apple entering the VR industry with the Apple Vision Pro is a great example of this, how a company of Apple's stature entering the LBVR industry will be a catalyst for innovation, improved user experience and increased adoption which in turn will benefit everyone in the industry," said Mr. Sinnalebbe.

Game development

Following the success of Propagation: Top Squad, Synthesis VR partnered with WanadevStudio in developing and launching Propagation: Top Survivors. Propagation: Top Survivors is the No. 1 played game after the launch in most VR locations.

After the positive reception of Top Survivors, SVR is enthusiastic about continuing its collaboration with developers and partners to create more exciting games and in-house content.

SynthesisVR has also taken full ownership and secured all rights to three popular free-roam games and will be continuing development for the following:

1. Blasters of the Universe;
2. Paranormal Pest Patrol;
3. Teller Falls.

Local Manager

Conceived with the aim of simplifying arcade operations while meeting operators' desires for user-friendly experiences, the Local Manager app emerged to address unmet needs within the VR arcade landscape. By ingeniously combining advanced technology with an intuitive GUI (graphical user interfcae), this app serves as a practical solution, reflecting SVR's commitment to reshaping industry norms. It enhances VR experiences, granting arcade owners unprecedented control and satisfaction, seamlessly integrated within a pioneering platform. Notably, it stands as the exclusive app operating both PC VR and stand-alone VR headset content, uniting them within a single interface, marking a new era in VR arcade management and content licensing.

Agnostic platform

The VR landscape is ever-evolving, with constant dynamic changes of which Synthesis VR is acutely aware. Shaped by a series of impactful events such as the global repercussions of COVID-19, conflicts in various regions, inflation and component shortages. These factors have resulted in a transformative shift within the VR entertainment sector, impacting arcades worldwide. In response to these challenges and the evolving landscape, including the widespread adoption of Android stand-alone headsets, Synthesis VR has taken a pro-active role in navigating this transformation and being in the forefront of development.

As businesses pivot toward Android stand-alone headsets, SVR remains at the forefront of development, ensuring its platform aligns with the evolving needs of the VR entertainment industry. Its commitment extends beyond merely adapting to change; it strives to lead in creating an ecosystem that accommodates all types of headsets. Synthesis VR is dedicated to providing a comprehensive solution, enabling VR owners and operators to leverage its platform and ever-expanding content library. This approach allows businesses to tailor their VR ventures to individual needs and thrive in an industry marked by continual change and innovation.

Part of this innovation is Synthesis VR's ability to support enterprise offerings from HTC and PICO with their respective Business Plus and Enterprise solutions. Synthesis VR takes an active role in this continuing development.

Game publishing and distribution

Synthesis VR has over the years evolved into one of the most popular content licensing platforms for commercial VR locations that want to license not just games but also enterprise and educational content. SVR;s state-of-the-art distribution platform makes it easier for content developers to upload, update and track their content and gives the operators an easy way to license and use content.

The Synthesis VR platform is designed to accommodate various types of experiences, encompassing free roam, room-scale, Locomotion support and a myriad of other engaging possibilities.

Currently Synthesis VR content store boasts over 400 different VR games.

Synthesis VR version 4.0

Following months of development and careful consideration of user feedback, SVR launched the latest version 4.0 of its administrator interface. This update prioritizes operators and developers, making most functionalities self-intuitive. The interface keeps operators informed about the newest games, promotions, trending titles and editor's picks.

Enterprise training and cloud MDM model

Partnering with the right content providers and using Synthesis VR cloud proxy system and the ability to track and manage VR devices and content, Synthesis VR is positioned to provide an end-to-end enterprise solution for enterprise and corporate clients.

AI-powered creative agency

As part of expanding the company's capabilities and exposure to high-growth industries, the company has formed a team of creative professionals that specialize in graphics, video and visual effects editing to leverage the latest tools using AI (artificial intelligence) to create stunning content and marketing solutions for brands and companies. The products and content range from serving the rapidly growing influencer market to a new pilot film that uses AI to craft its visual effects.

What to look forward in 2024:

• Continuous innovation and the ability to support headsets running on various operating systems and the ability to support MR, AR and VR.
• Building out VR MDM services for corporate/enterprise customers: Currently adapting SVR's services to be offered as SaaS on AWS Marketplace.
• Investing in developing SVR proprietary content following the success of Propagation: Top Survivors with SVR's next game planning to launch before summer.
• Establishing SVR as a publisher.
• SVR is developing an RSVP system that allows VR arcade players to create AI avatars.
• Building out VR education, training, and R&D library, it is much safer to train professionals in the health care industry, architecture, automation aircraft design and many others. It is much cheaper to use VR than real-life test fields.
• Artificial intelligence (AI) applications for SVR and its partners. When it comes to LBVR studios, AI can be used to generate worlds and relatively random environments. This increases the replay ability value and the world generation cost can be significantly reduced. It makes even more sense for XR games that use the camera's passthrough mode to add virtual elements to your actual environment. AI could better recognize the environment and generate obstacles and maps intact with your physical environment. This can be further improved by using asset generation through a more human-like AI. It has a similar use case for enterprise training and education. Developing a quality and detailed VR experience takes a lot of effort, AI is lightspeeding the process.
• Introduce SVR turnkey solution and position SVR's turnkey solution as the premier choice for room-scale and free roam arena gaming. What distinguishes this turnkey solution from others is its ease of transitioning between different types of experiences. Notably, it stands out for its capability to seamlessly operate both PC and Android-based headsets, allowing for versatile experiences. The system's unique ability to switch between operating systems enhances overall utilization and throughput, setting it apart in the market.

XR Immersive will be hosting an investor webinar with CEO Mr. Sinnalebbe

In this webinar the company will present and discuss:

• Corporate update on the XR Immersive business model;
• Key achievements;
• 2024 outlook;
• Investor question-and-answer.

Please see details for the webinar below:

Date: Thursday, Jan. 18, 2023

Time: 11 a.m. PST to 12 p.m. PST (2 p.m. EST to 3 p.m. EST)

Location: via Zoom

About XR Immersive Tech Inc.

Since 2016, the company has been an industry leader in social entertainment, artificial intelligence (AI), virtual reality (VR) and augmented reality (AR) entertainment attractions. With its growing network of over 500 VR operators through Synthesis VR, the company helps its stakeholders build user experiences unmatched in realism, depth and immersion. The company builds experiences on its platforms for some of the world's largest companies including: Intel, Bayer, Capital One, Scotia Bank, the U.S. Food and Drug Administration, Allegiant Airlines, and more.

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