AI generated image of police officers in PPE wearing VR headsets in a training simulation
Adobe Stock
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

xReality Group (ASX:XRG) has announced its receipt of an $800K ($0.8M) contract from the Australian Government to provide its Virtual Reality (VR) training tech.

Shares jumped 16% out the gate in the first twenty minutes of trade to 5.6cps according to Cboe live pricing data.

Coming in at a total value of $809.6K and set for delivery in Q1 of FY2025, the company will roll out its ‘Operator XR’ branded VR training system to one Australian state government left undisclosed on Thursday.

XRG’s VR tech is predominantly targeted at military and law enforcement customers, able to offer “software development for mission critical simulations.” The company also owns Indoor Skydiving facilities.

Operator XR recurring revenue has, as a result of the $0.8M contract announced on Thursday and another US police customer deal, jumped 75% YoY from $1.26M to $2.2M.

The VR training tech is handled through a subsidiary with the same name, Operator XR.

Notably, the company has already received payment of the full $800K from the undisclosed state government customer.

Management pointed to existing deals with the ADF as a large factor in putting forward a compelling pitch to other customers.

“Building off the recent success with the Australian Defence Force, we are excited to be broadening our user base across other agencies in Australia,” XRG CEO Wayne Jones said.

The company has, in the past, rolled out tech to the WA Police Force.

XRG last traded at 5.6cps.

XRG by the numbers
More From The Market Online
The Market Online Video

Market Close: ASX Ltd drops on ASIC $150M raise request; iron ore offsets gold bounceback

Good Afternoon and welcome to Market Close for Monday of Week 51, I’m Jon Davidson.
HotCopper Daily Market Trends Graphic

Monday’s HotCopper trends: Winsome, 4D Medical, and other daily topics | Dec 15

With more than seven million users on the HotCopper forums, every discussion and speculation can move Australian markets, which is why getting out in front
A dirt road running through the Antimony Canyon project in Utah.

American Tungsten and Antimony leaves ‘Trigg’ name behind to start next era (and set fresh focus)

American Tungsten and Antimony has entered a new era, leaving the name "Trigg Minerals" behind to…
The Market Online Video

How to manage money on the average Aussie income

This week on Money and Investing, Mitch Olarenshaw and I break down how to manage money on the average Australian income, using practical