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.